BMO Capital analyst John Kim reiterated a Buy rating on Empire State Realty (ESRT – Research Report) today and set a price target of $11.00.
John Kim has given his Buy rating due to a combination of factors that underscore Empire State Realty’s promising financial and operational performance in the first quarter of 2024. The company exhibited a robust rebound in occupancy levels, which was reflected in both a quarter-over-quarter improvement and a substantial year-over-year increase in Core Funds From Operations (FFO). This financial indicator surpassed both BMO’s and the consensus estimates. Additionally, the company demonstrated strong growth in Same-Store Net Operating Income (SS NOI), an important metric for gauging the profitability and efficiency of their real estate operations.
Moreover, the positive trajectory was not limited to commercial real estate; their multifamily segment also reported significant growth in Net Operating Income (NOI). Empire State Realty’s strategic location in Manhattan contributed to improved office occupancy rates, which in turn boosted commercial occupancy. The leasing activity also saw an uptick, indicating a resilient demand for the company’s properties. While there were a few concerns, such as an increase in lease expirations and tenant improvement and leasing commission costs, these were overshadowed by the strong fundamental growth indicators, justifying the Buy rating.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Empire State Realty (ESRT) Company Description:
Empire State Realty Trust, Inc. is a real estate investment trust, which engages in owning, managing, acquiring, and repositioning office and retail properties in Manhattan and the greater New York metropolitan area. It operates through the Real Estate and Observatory segments. The real estate segment includes ownership, management, operation, acquisition, repositioning and disposition of real estate assets. The Observatory segment manages observatories at the empire state building. The company was founded on July 29, 2011 and is headquartered in New York, NY.
