NYSE:ESRT

Stock Analysis Report

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

Fundamentals

Imperfect balance sheet unattractive dividend payer.

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


Market Performance


7 Day Return

-2.7%

NYSE:ESRT

-2.4%

US REITs

-1.2%

US Market


1 Year Return

-13.9%

NYSE:ESRT

8.1%

US REITs

3.4%

US Market

ESRT underperformed the REITs industry which returned 8.1% over the past year.

ESRT underperformed the Market in United States of America which returned 3.4% over the past year.


Share holder returns

ESRTIndustryMarket
7 Day-2.7%-2.4%-1.2%
30 Day-5.9%-4.0%1.2%
90 Day-2.9%2.0%1.7%
1 Year-11.6%-13.9%13.0%8.1%5.7%3.4%
3 Year-23.2%-28.3%15.5%0.5%45.0%35.5%
5 Year-0.7%-11.0%54.5%22.1%59.3%41.6%

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

Valuation

Is Empire State Realty Trust undervalued based on future cash flows and its price relative to the stock market?

8%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Empire State Realty Trust's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Empire State Realty Trust's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Empire State Realty Trust is overvalued based on earnings compared to the US REITs industry average.

Empire State Realty Trust is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Empire State Realty Trust is poor value based on expected growth next year.


Price Based on Value of Assets

Empire State Realty Trust is overvalued based on assets compared to the US REITs industry average.


Next Steps

Future Growth

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

13.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Empire State Realty Trust's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Empire State Realty Trust's earnings are expected to grow by 13.7% yearly, however this is not considered high growth (20% yearly).

Empire State Realty Trust's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Empire State Realty Trust's earnings growth is positive but not above the United States of America market average.

Empire State Realty Trust's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Empire State Realty Trust will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

3.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Empire State Realty Trust's year on year earnings growth rate has been positive over the past 5 years.

Empire State Realty Trust's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Empire State Realty Trust's 1-year earnings growth is negative, it can't be compared to the US REITs industry average.


Return on Equity

Empire State Realty Trust has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Empire State Realty Trust used its assets less efficiently than the US REITs industry average last year based on Return on Assets.


Return on Capital Employed

Empire State Realty Trust's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Empire State Realty Trust's financial position?


Financial Position Analysis

Empire State Realty Trust is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Empire State Realty Trust's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Empire State Realty Trust's level of debt (98.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (121% vs 98.1% today).

Debt is not well covered by operating cash flow (14.9%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.7x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.3x debt.


Next Steps

Dividend

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

3.01%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Empire State Realty Trust's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Empire State Realty Trust's dividend is below the markets top 25% of dividend payers in United States of America (3.76%).

Whilst dividend payments have been stable, Empire State Realty Trust has been paying a dividend for less than 10 years.

Dividend payments have increased, but Empire State Realty Trust only paid a dividend in the past 6 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.8x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Empire State Realty Trust's salary, the management and board of directors tenure and is there insider trading?

4.6yrs

Average management tenure


CEO

Anthony Malkin (57yo)

7.5yrs

Tenure

US$9,319,019

Compensation

Mr. Anthony E. Malkin has been Chief Executive Officer and Chairman of Empire State Realty Trust, Inc since 2012 at Empire State Realty OP, L.P. Mr. Malkin served as the President at Empire State Realty Tr ...


CEO Compensation Analysis

Insufficient data for Anthony to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.

Anthony's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.6yrs

Average Tenure

58yo

Average Age

The tenure for the Empire State Realty Trust management team is about average.


Board Age and Tenure

5.8yrs

Average Tenure

59yo

Average Age

The tenure for the Empire State Realty Trust board of directors is about average.


Insider Trading

No 3 month individual insider trading information.


Recent Insider Transactions

BuyUS$72,85031 Jul 18
David Karp
EntityIndividual
Role
Executive VP & CFO
Shares4,500
Max PriceUS$16.19

Ownership Breakdown


Management Team

  • Fred Posniak (73yo)

    Senior Vice President

    • Tenure: 2.0yrs
  • David Karp (59yo)

    Executive VP & CFO

    • Tenure: 7.5yrs
    • Compensation: $3.42m
  • Drew Prentice (46yo)

    Senior VP

    • Tenure: 4.8yrs
  • John Kessler (54yo)

    President & COO

    • Tenure: 4.4yrs
    • Compensation: $4.85m
  • Jeffrey Newman (59yo)

    Senior Vice President

  • Ryan Kass

    Senior VP & Director of Leasing

  • Thomas Durels (57yo)

    Executive Vice President of Real Estate

    • Tenure: 1.5yrs
    • Compensation: $4.41m
  • Anthony Malkin (57yo)

    Chairman & CEO

    • Tenure: 7.5yrs
    • Compensation: $9.32m
  • Greg Faje

    Vice President

    • Tenure: 2.5yrs
  • Tom Keltner (73yo)

    Executive VP

    • Tenure: 7.5yrs
    • Compensation: $2.10m

Board Members

  • Steve Gilbert (72yo)

    Lead Independent Director

    • Tenure: 5.8yrs
    • Compensation: $289.44k
  • Anthony Malkin (57yo)

    Chairman & CEO

    • Tenure: 7.5yrs
    • Compensation: $9.32m
  • Bill Berkman (54yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: $201.83k
  • Peter Malkin (85yo)

    Chairman Emeritus

  • Tom Derosa (61yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: $196.50k
  • Jim Robinson (56yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: $187.46k
  • Leslie Biddle (52yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: $225.81k
  • Salvatore Giliberto (69yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: $211.54k

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: ESRT
  • Exchange: NYSE
  • Founded:
  • Industry: diversified reits
  • Sector: real estate
  • Implied Market Cap: US$4.458b
  • Market Cap: US$2.586b
  • Shares outstanding: 305.32m
  • Website: Click here

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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/21 00:57
End of Day Share Price2019/07/19 00:00
Earnings2019/03/31
Annual Earnings2018/12/31


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.