“Bank Earnings Have Entered the Upside Down”
ESRT: office portfolio ~95% leased with rents up 20 quarters, trades at six times cash from operations; but observatory revenue fell ~30% last quarter and net operating income nearly halved on weaker international tourism and new competing decks; debt-to-EBITDA 6.6 and limited visibility. He holds for now.
He says, you own the Empire State Realty Trust, and its symbol is ESRT, just like me . It would be an understatement to say the performance was terrible. What is the main reason behind the poor results and would you classify it as a buy, hold, or sell at its current price?
Yes, well, first and foremost, this is a real estate investment trust that owns the Empire State Building and a portfolio that mostly consists of office properties in New York City.
They have some residential properties, but the majority are offices.