Empire State Realty Trust Inc. Class A Common Stock (ESRT)

FairStock Score: 60/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses I can understand, bought at a sensible price, with balance sheets that won't force my hand. ESRT owns roughly 7.5 million square feet of office, 0.8 million square feet of retail, and 743 apartments in New York City, anchored by the Empire State Building. That is a unique collection of irreplaceable locations, and management has invested in modernization and energy efficiency. But a REIT's reported EPS is distorted by depreciation, and FairStock does not give me FFO or AFFO, so I must lean on other evidence. Revenue was $766.8M in fiscal year 2025, the year ended 2025-12-31, essentially flat versus $766.8M in fiscal year 2024, the year ended 2024-12-31, after $738.2M in fiscal year 2023, the year ended 2023-12-31. Net income slipped to $73.0M from $80.4M, and in fiscal Q2 2026, the quarter ended 2026-06-30, the company filed a net loss of $39.6M, or $0.15 per diluted share. The trailing figures show a 3.56% dividend yield, a 17.4% FCF yield on $227.6M of trailing free cash flow, and a debt-to-equity ratio of 1.24. FairStock's numbers at the 2026-10-13 close of $4.86 include P/B of 0.81, P/E of 243, ROE of 0.52%, ROCE of 2.05%, and an Altman Z-Score of 0.28, which flags financial risk. It is classified as an asset play because it trades below book value. The discount may be real, but leverage and weak earnings make it speculative until leasing and cash flow improve. Growth is minimal; the margin of safety is in the assets, not the income statement.

In plain English: Empire State Realty Trust owns office, retail and apartment buildings in New York City, including the Empire State Building. The business is steady but not growing much, and its latest filed quarter showed a loss, though it still produces a lot of cash and trades below the value of its real estate after debt. At $4.86, the stock looks cheap compared with its buildings and cash flow, but expensive compared with its very small earnings.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer