Author Topic: ESRT- Empire State Realty Trust  (Read 8978 times)

fareastwarriors

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changegonnacome

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Re: ESRT- Empire State Realty Trust
« Reply #41 on: June 29, 2020, 02:49:18 PM »
Empire State building alone I think could fetch the current EV of ESRT- given the iconic address alone with the added attraction business attached.......its inflation protected bond like income stream would possibly warrant a 25x multiple. The rent roll on the Empire State building a 20x rate.

The remaining assets sit at higher end of Class B Manhattan / Metro area RE........lets call them B+ with a descent environmental/sustainability footprint.

The downside is protected here.........the risk appears in the management teams contrarian instinct to now lever up and do some deals. The ability to lever up against an asset like the ESB is tempting & easily done...........what bank/bond holder wouldn't mind taking delivery of an iconic asset if they had to and selling it to China or Qatar.
« Last Edit: June 29, 2020, 03:01:42 PM by changegonnacome »

Gregmal

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Re: ESRT- Empire State Realty Trust
« Reply #42 on: June 29, 2020, 02:59:33 PM »
I do agree, but on the flip side, I think they've proven disciplined, certainly have a financial alignment, and I think given those two things, have earned the opportunity to "take a shot", especially during a time in which it may be wise to "start shooting".

fareastwarriors

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Re: ESRT- Empire State Realty Trust
« Reply #43 on: July 06, 2020, 03:37:23 PM »
Commercial mortgage delinquencies surged at record monthly rate in June

https://www.cnbc.com/2020/07/06/commercial-mortgage-delinquencies-surged-at-record-monthly-rate-in-june.html

Delinquencies in commercial mortgage-backed securities jumped by 213 basis points in June to 3.59% from 1.46%.

It was the largest one-month spike since Fitch Ratings began tracking the metric nearly 16 years ago.

The hotel and retail sectors are seeing the worst delinquencies, as the coronavirus has been especially hard on those industries.

Gregmal

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Re: ESRT- Empire State Realty Trust
« Reply #44 on: July 06, 2020, 04:49:12 PM »
This is where having low leverage and nearly 80% of SF unencumbered plays into their hands. They are definitely well positioned should the CMBS issues prompt further softness in the market.

Gregmal

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Re: ESRT- Empire State Realty Trust
« Reply #45 on: July 13, 2020, 08:57:31 AM »
Numbers continue to improve, Observatory expected to reopen 7/20.

cherzeca

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Re: ESRT- Empire State Realty Trust
« Reply #46 on: July 13, 2020, 11:40:57 AM »
no position. I do have a view that you will see more "no central HQ office" businesses.  anecdotally, I hear this from the young adults that I know, about the direction their companies are taking.  I expect each business's office HQ to become more conference room availability for client meetings and less employee office space...secular shift.  I see Empire State Building/chrysler building and the like to be on the forefront of this secular contraction. 

Gregmal

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Re: ESRT- Empire State Realty Trust
« Reply #47 on: July 29, 2020, 02:05:13 PM »
https://www.businesswire.com/news/home/20200729005828/en/Empire-State-Realty-Trust-Announces-Quarter-2020


Second Quarter and Recent Highlights

Net loss attributable to the Company was $0.07 per fully diluted share.
After a $0.03 per share reserve against tenant receivables and non-cash reduction in straight line rent balances, Core Funds From Operations (“Core FFO”) was $0.14 per fully diluted share.
Same Store Property Cash NOI excluding lease termination fees was up 18.0% from the second quarter 2019 primarily driven by lower property operating expenses, partially offset by a reserve against tenant receivables. When COVID-related rent deferrals are excluded, Same Store Property Cash NOI increased 9.9% from the second quarter 2019.
Strong liquidity position with $1.4 billion of total liquidity as of June 30, 2020, which consists of $873 million of cash plus an additional $550 million available under its revolving credit facility.
The Company repurchased $52 million of its common stock shares at a weighted average price of $7.99 per share in the second quarter, and year-to-date through July 28, 2020, the Company repurchased $119 million of common stock at a weighted average share price of $8.67.
For the total portfolio in the second quarter, we signed 19 new, renewal, and expansion leases, representing 113,431 rentable square feet at an average starting rental rate of $64.43 per rentable square foot.
Collected 84% of second quarter 2020 total billings with 86% for office tenants and 75% for retail tenants. Through July 24, 2020, collected 90% of July total billings, with 93% for office tenants and 75% for retail tenants.
The Empire State Building Observatory remained closed during the entire second quarter and reopened on July 20, 2020.
Declared a dividend of $0.105 per share.
Announced the appointment of Christina Chiu to EVP and CFO, Aaron D. Ratner to SVP and CIO, and the departure of John B. Kessler. On July 13, 2020, the Company announced the appointment of R. Paige Hood to its Board of Directors, effective August 1, 2020, and the departure of William H. Berkman, effective July 31, 2020.
Reduced expected full year G&A by approximately 12% from the previously disclosed 2020 G&A run rate of $68 million to $60 million, excluding one-time severance charges.
Reduced property operating expenses by $10 million in the second quarter 2020 from the prior year period and expect further to reduce expenses by $12 million in the second half of 2020.
Reduced required capital expenditures planned for 2020.
Reduced annual base salary for Anthony E. Malkin, the Company’s Chairman, President and CEO, and Thomas P. Durels, EVP Real Estate, by 33% and 25%, respectively, effective August 1 through the remainder of 2020. This is in addition to Mr. Malkin’s base salary reduction to $1.00 for the second quarter of 2020.
Reduced 2021 NEO annual equity compensation by $3.9 million, comprised of a $2.7 million reduction for Mr. Malkin and $1.2 million reduction for Mr. Durels.

Gregmal

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