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ESRT posts second-quarter loss as Empire State Building visits fall
The REIT recorded $166.11 million in non-cash impairment tied to underperforming observatory traffic, while visits dropped to 450,000, down 28.5% year over year.
Empire State Realty Trust reported a second-quarter loss as declines in international tourism have weighed on the Empire State Building observatory. Commercial Observer said ESRT posted second-quarter funds from operations of $57 million, or 21 cents per share, a loss of $25.8 million, or 15 cents per share, versus the same period a year earlier.
The company attributed the year-over-year loss largely to a “massive” non-cash impairment charge of $166.11 million connected to underperforming visitations. Commercial Observer reported the observatory produced $12.4 million of net income in the first quarter, down 48.5% from $24.1 million in the same period of 2025, and visitors during the second quarter totaled 450,000, down 28.5% year over year.
ESRT also pointed to lower usage of third-party pass program channels used by tourist sites in New York, which it said are commonly used by budget-conscious international travelers. The outlet noted that ESRT reduced its 2026 core FFO assumptions to a range of 75 cents to 79 cents per share from 85 cents to 89 cents per share previously forecast in February.
Commercial Observer reported ESRT generated $196.9 million of revenue in the quarter, up slightly from $191.3 million a year ago. On the earnings call, the CEO said the World Cup did not provide a meaningful lift to observatory visits, calling it a distraction rather than a driver of attendance.