DB:ES9

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Empire State Realty Trust

Executive Summary

Empire State Realty Trust, Inc. (NYSE: ESRT), a leading real estate investment trust (REIT), owns, manages, operates, acquires and repositions office and retail properties in Manhattan and the greater New York metropolitan area, including the Empire State Building, the world's most famous building.


Snowflake Analysis

Good value with moderate growth potential.

Share Price & News

How has Empire State Realty Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ES9's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-8.8%

ES9

-2.4%

DE REITs

-0.6%

DE Market


1 Year Return

-57.8%

ES9

8.9%

DE REITs

3.0%

DE Market

Return vs Industry: ES9 underperformed the German REITs industry which returned 8.6% over the past year.

Return vs Market: ES9 underperformed the German Market which returned 2.5% over the past year.


Shareholder returns

ES9IndustryMarket
7 Day-8.8%-2.4%-0.6%
30 Day-19.1%-2.0%-0.1%
90 Day-35.2%5.7%16.4%
1 Year-56.0%-57.8%9.4%8.9%5.2%3.0%
3 Year-64.2%-67.2%-2.8%-15.8%1.0%-6.9%
5 Year-59.5%-64.5%1.9%-19.4%8.0%-6.4%

Price Volatility Vs. Market

How volatile is Empire State Realty Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Empire State Realty Trust undervalued compared to its fair value and its price relative to the market?

48.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ES9 (€5.7) is trading below our estimate of fair value (€11.14)

Significantly Below Fair Value: ES9 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ES9 is poor value based on its PE Ratio (23.9x) compared to the REITs industry average (8.6x).

PE vs Market: ES9 is poor value based on its PE Ratio (23.9x) compared to the German market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: ES9 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: ES9 is good value based on its PB Ratio (1x) compared to the DE REITs industry average (1.5x).


Next Steps

Future Growth

How is Empire State Realty Trust forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

43.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ES9's forecast earnings growth (43.3% per year) is above the savings rate (0.2%).

Earnings vs Market: ES9's earnings (43.3% per year) are forecast to grow faster than the German market (22.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ES9's revenue is expected to decline over the next 3 years (-14.5% per year).

High Growth Revenue: ES9's revenue is forecast to decline over the next 3 years (-14.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ES9's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Empire State Realty Trust performed over the past 5 years?

12.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ES9 has high quality earnings.

Growing Profit Margin: ES9's current net profit margins (6.6%) are lower than last year (8.6%).


Past Earnings Growth Analysis

Earnings Trend: ES9's earnings have grown by 12.5% per year over the past 5 years.

Accelerating Growth: ES9's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ES9 had negative earnings growth (-21.5%) over the past year, making it difficult to compare to the REITs industry average (25.3%).


Return on Equity

High ROE: ES9's Return on Equity (4.5%) is considered low.


Next Steps

Financial Health

How is Empire State Realty Trust's financial position?


Financial Position Analysis

Short Term Liabilities: ES9's short term assets ($1.3B) exceed its short term liabilities ($113.1M).

Long Term Liabilities: ES9's short term assets ($1.3B) do not cover its long term liabilities ($2.7B).


Debt to Equity History and Analysis

Debt Level: ES9's debt to equity ratio (137.4%) is considered high.

Reducing Debt: ES9's debt to equity ratio has increased from 117.6% to 137.4% over the past 5 years.

Debt Coverage: ES9's debt is not well covered by operating cash flow (8.6%).

Interest Coverage: ES9's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet


Next Steps

Dividend

What is Empire State Realty Trust current dividend yield, its reliability and sustainability?

6.55%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ES9's dividend (6.55%) is higher than the bottom 25% of dividend payers in the German market (1.25%).

High Dividend: ES9's dividend (6.55%) is in the top 25% of dividend payers in the German market (3.84%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ES9 has been paying a dividend for less than 10 years.

Growing Dividend: ES9's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.4%), ES9's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

Tony Malkin (58yo)

8.5yrs

Tenure

US$11,145,499

Compensation

Mr. Anthony E. Malkin, also known as Tony, has been a Director of APi Group Corporation since October 2019. Mr. Malkin has been Chief Executive Officer and Chairman of Empire State Realty Trust, Inc since  ...


CEO Compensation Analysis

Compensation vs Market: Tony's total compensation ($USD11.15M) is above average for companies of similar size in the German market ($USD1.49M).

Compensation vs Earnings: Tony's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Anthony Malkin
Chairman & CEO8.5yrsUS$11.15m0.40% $6.9m
John Kessler
President & COO5.42yrsUS$5.14mno data
Thomas Keltner
Executive VP8.5yrsUS$2.40mno data
Thomas Durels
Executive Vice President of Real Estate2.5yrsUS$5.19m0.0014% $23.5k
Christina Chiu
Executive VP & CFO0.25yrno datano data
Aaron Ratner
Senior VP & Chief Investment Officer0.17yrno datano data
Andrew Prentice
Senior VP5.75yrsno datano data
Greg Faje
Vice President3.5yrsno datano data
Ryan Kass
Senior VP & Director of Leasingno datano datano data
Fred Posniak
Senior Vice President3yrsno datano data

3.5yrs

Average Tenure

56.5yo

Average Age

Experienced Management: ES9's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Anthony Malkin
Chairman & CEO8.5yrsUS$11.15m0.40% $6.9m
Steven Gilbert
Lead Independent Director6.75yrsUS$290.00k0.011% $195.6k
William Berkman
Independent Director6.75yrsUS$217.50k0.014% $244.5k
Peter Malkin
Chairman Emeritusno datano datano data
Thomas DeRosa
Independent Director6.75yrsUS$209.50kno data
James Robinson
Independent Director5.5yrsUS$222.50kno data
Leslie Biddle
Independent Director3.33yrsUS$214.50kno data
Salvatore Giliberto
Independent Director6.75yrsUS$229.50k0.0020% $34.1k
Patricia Han
Independent Director0.83yrUS$99.69kno data

6.8yrs

Average Tenure

58yo

Average Age

Experienced Board: ES9's board of directors are considered experienced (6.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Empire State Realty Trust, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Empire State Realty Trust, Inc.
  • Ticker: ES9
  • Exchange: DB
  • Founded:
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Implied Market Cap: US$1.939b
  • Market Cap: US$1.017b
  • Listing Market Cap: US$1.716b
  • Shares outstanding: 296.01m
  • Website: https://www.empirestaterealtytrust.com

Number of Employees


Location

  • Empire State Realty Trust, Inc.
  • 111 West 33rd Street
  • 12th Floor
  • New York
  • New York
  • 10120
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ESRTNYSE (New York Stock Exchange)YesClass A Common StockUSUSDOct 2013
ES9DB (Deutsche Boerse AG)YesClass A Common StockDEEUROct 2013

Biography

Empire State Realty Trust, Inc. (NYSE: ESRT), a leading real estate investment trust (REIT), owns, manages, operates, acquires and repositions office and retail properties in Manhattan and the greater New York metropolitan area, including the Empire State Building, the world's most famous building. Headquartered in New York, New York, the Company's office and retail portfolio covers 10.1 million rentable square feet, as of March 31, 2020, consisting of 9.4 million rentable square feet in 14 office properties, including nine in Manhattan, three in Fairfield County, Connecticut, and two in Westchester County, New York; and approximately 700,000 rentable square feet in the retail portfolio. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/09 21:35
End of Day Share Price2020/07/09 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.