ARCA:ESBA

Stock Analysis Report

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Executive Summary

Empire State Realty OP, L.P. operates as a subsidiary of Empire State Realty Trust, Inc.


Snowflake Analysis

Good value second-rate dividend payer.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

3.6%

ESBA

3.3%

US REITs

1.3%

US Market


1 Year Return

-49.8%

ESBA

-6.4%

US REITs

14.9%

US Market

Return vs Industry: ESBA underperformed the US REITs industry which returned -7.6% over the past year.

Return vs Market: ESBA underperformed the US Market which returned 12.5% over the past year.


Shareholder returns

ESBAIndustryMarket
7 Day3.6%3.3%1.3%
30 Day-8.5%1.7%4.7%
90 Day-18.7%11.0%17.1%
1 Year-47.7%-49.8%-2.6%-6.4%17.3%14.9%
3 Year-65.7%-68.6%15.6%1.9%38.9%29.9%
5 Year-56.9%-62.2%45.4%15.5%71.3%52.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ESBA ($6.51) is trading below our estimate of fair value ($14.56)

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


Price To Earnings Ratio

PE vs Industry: ESBA is good value based on its PE Ratio (24.4x) compared to the US REITs industry average (29.4x).

PE vs Market: ESBA is poor value based on its PE Ratio (24.4x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ESBA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ESBA is good value based on its PB Ratio (1.1x) compared to the US REITs industry average (1.3x).


Next Steps

Future Growth

How is Empire State Realty OP forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

7.6%

Forecasted Real Estate industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Empire State Realty OP has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

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

5.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ESBA has high quality earnings.

Growing Profit Margin: ESBA's current net profit margins (10.8%) are lower than last year (15.1%).


Past Earnings Growth Analysis

Earnings Trend: ESBA's earnings have grown by 5.2% per year over the past 5 years.

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

Earnings vs Industry: ESBA had negative earnings growth (-26.1%) over the past year, making it difficult to compare to the REITs industry average (3%).


Return on Equity

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


Next Steps

Financial Health

How is Empire State Realty OP's financial position?


Financial Position Analysis

Short Term Liabilities: ESBA's short term assets ($1.3B) exceed its short term liabilities ($143.6M).

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


Debt to Equity History and Analysis

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

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

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

Interest Coverage: ESBA'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 OP current dividend yield, its reliability and sustainability?

6.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ESBA's dividend (6.45%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: ESBA's dividend (6.45%) is in the top 25% of dividend payers in the US market (4.51%)


Stability and Growth of Payments

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

Growing Dividend: ESBA's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (50%), ESBA'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?

3.2yrs

Average management tenure


CEO

Tony Malkin (58 yo)

no data

Tenure

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Anthony Malkin
Chairmanno datano datano data
Christina Chiu
Executive VP & CFO of Empire State Realty Trust0.33yrno datano data
Andrew Prentice
Senior VPno datano datano data
Thomas Keltner
Executive VPno datano datano data
Thomas Durels
Executive VP of Real Estate and Director of Leasing & Ops - Empire State Realty Trustno datano datano data
Ryan Kass
Senior VP of Empire State Realty Trust & Director of Leasing - Empire State Realty Trust3.17yrsno datano data
Jeffrey Newman
Senior Vice President of Empire State Realty Trustno datano datano data
Fred Posniak
Senior VP of Empire State Realty Trust3.17yrsno datano data
John Hogg
SVP and Head of Financial Planning & Analysis of Empire State Realty Trustno datano datano data

3.2yrs

Average Tenure

58yo

Average Age

Experienced Management: ESBA's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Anthony Malkin
Chairmanno datano datano data
Steven Gilbert
Independent Lead Director of Empire State Realty Trustno datano datano data
William Berkman
Independent Director of Empire State Realty Trustno datano datano data
Peter Malkin
Chairman Emeritus of Empire State Realty Trustno datano datano data
Thomas DeRosa
Director of Empire State Realty Trust6.83yrsno datano data
James Robinson
Director of Empire State Realty Trustno datano datano data
Leslie Biddle
Director of Empire State Realty Trust3.42yrsno datano data
Salvatore Giliberto
Director of Empire State Realty Trust6.83yrsno datano data

6.8yrs

Average Tenure

60yo

Average Age

Experienced Board: ESBA'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 OP, L.P.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Empire State Realty OP, L.P.
  • Ticker: ESBA
  • Exchange: ARCA
  • Founded:
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: US$1.938b
  • Shares outstanding: 297.68m
  • Website: https://www.empirestaterealtytrust.com

Number of Employees


Location

  • Empire State Realty OP, L.P.
  • 111 West 33rd Street
  • 12th Floor
  • New York
  • New York
  • 10120
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FISKARCA (NYSE Arca)Series 250 OP UnitsUSUSDOct 2013
OGCPARCA (NYSE Arca)Series 60 OP UnitsUSUSDOct 2013
ESBAARCA (NYSE Arca)YesSeries ES OP UnitsUSUSDOct 2013

Biography

Empire State Realty OP, L.P. operates as a subsidiary of Empire State Realty Trust, Inc.


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/03 01:12
End of Day Share Price2020/07/31 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.