Empire State Realty Trust Posts Q2 Loss Amid Tourism Slump and Goodwill Write-Down — Empire State Realty Trust, Inc.

Event summary

Reported a net loss of $0.15 per share in Q2 2026, including a $166.1 million goodwill impairment charge related to its Observatory unit.
Same-Store Property Cash NOI decreased by 3.2% year-over-year, excluding non-recurring real estate tax abatements.
Completed the disposition of 250 West 57th Street for $275 million, recycling capital into the December 2025 acquisition of 130 Mercer Street.
Signed 381,799 rentable square feet of commercial leases, with blended office leasing spreads at +17.8%.
Empire State Building Observation Deck generated NOI of $12.4 million, impacted by reduced international tourism.

The big picture

Empire State Realty Trust's Q2 results highlight the dual challenges of tourism-dependent revenue streams and market-driven goodwill impairments. The company's strategic focus on leasing spreads and capital recycling reflects broader trends in commercial real estate, where asset optimization and tenant retention are critical amid shifting office space utilization patterns.

What we're watching

Tourism Recovery: How the continued impact from reduced international tourism will affect the Empire State Building Observation Deck's NOI.
Leasing Dynamics: Whether Empire State Realty Trust can sustain its 20th consecutive quarter of positive office leasing spreads amid market uncertainties.
Capital Recycling: The pace at which the company will recycle capital from recent dispositions into new acquisitions and how it will impact its balance sheet.