v3.25.2
Segment Reporting
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company's operating segments are based on our method of internal reporting and include our office properties, retail portfolio, multifamily portfolio, and the Observatory. These operating segments have been aggregated for reporting into two reportable segments: (1) real estate and (2) Observatory. Our real estate segment includes all activities related to the ownership, management, operation, acquisition, redevelopment, repositioning and disposition of our traditional real estate assets. Our Observatory segment operates the 86th and 102nd floor observatories at the Empire State Building. These two lines of businesses are managed separately because each business requires different support infrastructures, provides different services and has dissimilar economic characteristics such as investments needed, stream of revenues and marketing strategies. We account for intersegment sales and rents as if the sales or rents were to third parties, that is, at current market prices.
Our Chief Executive Officer, who also serves as our CODM, manages our business, regularly accesses information, and evaluates performance for operating decision-making purposes, including allocation of resources. The CODM uses Net Operating Income ("NOI") to review actual performance and decide whether to invest in capital expenditures, pursue acquisitions and/or dispositions, determine dividend payments, and/or engage in other capital transactions. Our CODM does not evaluate operating segments using asset or liability information.
The following tables provide components of segment net income for each segment:
Three Months Ended June 30, 2025
(amounts in thousands)Real EstateObservatoryIntersegment EliminationTotal
Revenues:
Revenue, excluding third-party management and other fees$156,943 $33,899 $— $190,842 
Intercompany rental revenue20,666 — (20,666)— 
Total revenues, excluding third-party management and other fees177,609 33,899 (20,666)190,842 
Segment operating expenses:
Property operating expenses44,880 — — 44,880 
Observatory expenses— 9,822 — 9,822 
Other segment expenses1
34,939 20,666 (20,666)34,939 
Total segment operating expenses79,819 30,488 (20,666)89,641 
Net operating income$97,790 $3,411 $— $101,201 
Segment assets$3,813,645 $265,105 $— $4,078,750 
(1) Other segment expenses include real estate taxes, ground rent expense and intercompany rent expense.
Three Months Ended June 30, 2024
(amounts in thousands)Real EstateObservatoryIntersegment EliminationTotal
Revenues:
Revenue, excluding third-party management and other fees$155,043 $34,124 $— $189,167 
Intercompany rental revenue20,980 — (20,980)— 
Total revenues, excluding third-party management and other fees176,023 34,124 (20,980)189,167 
Segment operating expenses:
Property operating expenses41,516 — — 41,516 
Observatory expenses— 8,958 — 8,958 
Other segment expenses1
34,215 20,980 (20,980)34,215 
Total segment operating expenses75,731 29,938 (20,980)84,689 
Net operating income$100,292 $4,186 $— $104,478 
Segment assets$4,171,251 $261,999 $— $4,433,250 
(1) Other segment expenses include real estate taxes, ground rent expense and intercompany rent expense.
Six Months Ended June 30, 2025
(amounts in thousands)Real EstateObservatoryIntersegment EliminationTotal
Revenues:
Revenue, excluding third-party management and other fees$313,417 $57,060 $— $370,477 
Intercompany rental revenue35,826 — (35,826)— 
Total revenues, excluding third-party management and other fees349,243 57,060 (35,826)370,477 
Operating expenses:
Property operating expenses89,940 — — 89,940 
Observatory expenses— 17,940 — 17,940 
Other segment expenses1
70,320 35,826 (35,826)70,320 
Total segment operating expenses160,260 53,766 (35,826)178,200 
Net operating income$188,983 $3,294 $— $192,277 
(1) Other segment expenses include real estate taxes, ground rent expense and intercompany rent expense.
Six Months Ended June 30, 2024
(amounts in thousands)Real EstateObservatoryIntersegment EliminationTotal
Revenues:
Revenue, excluding third-party management and other fees$311,361 $58,720 $— $370,081 
Intercompany rental revenue37,047 — (37,047)— 
Total revenues, excluding third-party management and other fees348,408 58,720 (37,047)370,081 
Operating expenses:
Property operating expenses86,576 — — 86,576 
Observatory expenses— 17,389 — 17,389 
Other segment expenses1
68,787 37,047 (37,047)68,787 
Total segment operating expenses155,363 54,436 (37,047)172,752 
Net operating income$193,045 $4,284 $— $197,329 
(1) Other segment expenses include real estate taxes, ground rent expense and intercompany rent expense.
Below is a reconciliation of Net income to Net operating income:
Three Months Ended June 30,Six Months Ended June 30,
(amounts in thousands)2025202420252024
(unaudited)(unaudited)
Net income$11,385 $28,555 $27,163 $38,770 
Add:
General and administrative expenses18,685 18,020 35,625 33,992 
Depreciation and amortization47,802 47,473 96,581 93,554 
Interest expense25,126 25,323 52,064 50,451 
Interest expense associated with property in receivership— 628 647 628 
Loss on early extinguishment of debt— — — 553 
Income tax expense (benefit)478 750 (141)95 
Less:
Gain on disposition of property— (10,803)(13,170)(10,803)
Third-party management and other fees(408)(376)(839)(641)
Interest income(1,867)(5,092)(5,653)(9,270)
Net operating income$101,201 $104,478 $192,277 $197,329