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Empire State Realty Trust swings to net loss as observatory visitors fall
The REIT wrote down $166M tied to the Empire State Building observation deck and said visitor counts fell about 18% and 29% year over year in the first and second quarters.
Empire State Realty Trust said it took a $166M write down tied to the Empire State Building observation deck, as fewer visitors dragged results for the Manhattan attraction. The REIT reported a net loss of 15 cents per share in the second quarter.
According to Bisnow, tourism-related net operating income for the observatory fell by half, dropping from $24M in the second quarter of 2025 to $12.4M in the same period this year. ESRT shares were down 14% by Thursday afternoon after the update.
ESRT attributed the deterioration to weaker international tourism, even as the World Cup brought more than 1 million people to New York and New Jersey. The REIT said observatory visitors declined by about 18% year over year in the first quarter and by 29% in the second quarter.
Bisnow reported that ESRT’s CEO, Tony Malkin, said the company began a total re evaluation of the observatory business model and execution, anticipating market conditions could keep working against its historical international customer mix. He also cited a 45% decline in customers participating in bundled sightseeing programs between 2024 and 2026 year to date and said ESRT is adjusting advertising and its online presence, including shifting from traditional search to AI searches.