Empire State Realty Trust Q2 2026: Observatory Slump Hits Full-Year Outlook
As seen on the 24/7 Wall St. homepage on July 29, 2026.
Observatory visitors collapsed 28.5% year-over-year to 450,000 as international tourism dried up, forcing the REIT to slash full-year Core FFO guidance to $0.75–$0.79 per share from $0.85–$0.89 and take a $166 million goodwill impairment charge, though office leasing spreads remained strong at 17.8% for the 20th straight quarter.
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Empire State Realty Trust reported Q2 2026 EPS of $0.21, but the headline number was overshadowed by a sharp deterioration in its Observatory business. Visitors to the Empire State Building's observation deck fell 28.5% year-over-year to 450,000 as international tourism dried up — a significant blow given how central that attraction is to ESRT's revenue mix. The quarter's results also included a $166 million goodwill impairment charge, adding further pressure to the bottom line.
The weaker Observatory performance prompted management to cut full-year Core FFO guidance to $0.75–$0.79 per share, down from the prior range of $0.85–$0.89 — a meaningful reduction that signals the tourism headwind is not expected to reverse quickly. Revenue came in at $196.9 million, missing the $199.9 million consensus estimate by roughly 1.5%.
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The one consistent bright spot was office leasing, where ESRT recorded leasing spreads of 17.8% — marking the 20th consecutive quarter of positive spreads. That streak suggests the company's Manhattan office portfolio continues to attract tenants at improving rents, even as the Observatory-driven segment weighs heavily on the overall financial picture.
Mentioned: ESRT