v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 2026
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.
Our Chief Executive Officer, who also serves as our Chief Operating Decision Maker ("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 (loss) for each segment:
Three Months Ended June 30, 2026
(amounts in thousands)Real EstateObservatoryIntersegment EliminationTotal
Revenues:
Revenue, excluding third-party management and other fees$172,406 $24,225 $— $196,631 
Intercompany rental revenue14,771 — (14,771)— 
Total revenues, excluding third-party management and other fees187,177 24,225 (14,771)196,631 
Segment operating expenses:
Property operating expenses47,774 — — 47,774 
Observatory expenses— 11,795 — 11,795 
Other segment expenses(1)
34,418 14,771 (14,771)34,418 
Total segment operating expenses82,192 26,566 (14,771)93,987 
Net operating income (loss)$104,985 $(2,341)$— $102,644 
Segment assets$4,177,101 $95,997 $— $4,273,098 
(1) Other segment expenses in the real estate segment include real estate taxes and ground rent expense and in the Observatory segment includes intercompany rent expense.
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 expenses(1)
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 in the real estate segment include real estate taxes and ground rent expense and in the Observatory segment includes intercompany rent expense.
Six Months Ended June 30, 2026
(amounts in thousands)Real EstateObservatoryIntersegment EliminationTotal
Revenues:
Revenue, excluding third-party management and other fees$343,944 $42,735 $— $386,679 
Intercompany rental revenue27,592 — (27,592)— 
Total revenues, excluding third-party management and other fees371,536 42,735 (27,592)386,679 
Operating expenses:
Property operating expenses95,518 — — 95,518 
Observatory expenses— 19,663 — 19,663 
Other segment expenses(1)
71,362 27,592 (27,592)71,362 
Total segment operating expenses166,880 47,255 (27,592)186,543 
Net operating income (loss)$204,656 $(4,520)$— $200,136 
(1) Other segment expenses in the real estate segment include real estate taxes and ground rent expense and in the Observatory segment includes 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 expenses(1)
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 in the real estate segment include real estate taxes and ground rent expense and in the Observatory segment includes intercompany rent expense.
Below is a reconciliation of Net operating income to Income (loss) before income taxes:
Three Months Ended June 30,Six Months Ended June 30,
(amounts in thousands)2026202520262025
(unaudited)(unaudited)
Net Operating Income$102,644 $101,201 $200,136 $192,277 
Add:
Gain on disposition of properties124,622 — 124,622 13,170 
Third-party management and other fees268 408 545 839 
Interest income1,575 1,867 2,188 5,653 
Less:
General and administrative expenses(25,123)(18,685)(43,216)(35,625)
Depreciation and amortization(50,389)(47,802)(100,608)(96,581)
Interest expense(27,805)(25,126)(55,942)(52,064)
Interest expense associated with property in receivership— — — (647)
Goodwill impairment charge(166,113)— (166,113)— 
Income (loss) before Income Taxes$(40,321)$11,863 $(38,388)$27,022