Empire State Realty OP, L.P. reported a solid performance for the third quarter and the nine months ended September 30, 2024, with total revenues reaching $199.6 million, a 4.2% increase from $191.5 million in the same period of 2023. This growth was driven by a rise in rental revenue, which amounted to $153.1 million, up 1.1% from $151.5 million year-over-year. Observatory revenue also saw a notable increase of 4.8%, totaling $39.4 million compared to $37.6 million in the prior year.

Operating income for the third quarter was $45.3 million, reflecting a 7.3% increase from $42.3 million in Q3 2023. Net income for the quarter rose 14.4% to $22.8 million, compared to $19.9 million in the previous year. Net income attributable to common unitholders also increased by 15.9%, reaching $21.7 million.

For the nine months ended September 30, 2024, total revenues were $570.3 million, a 4.3% increase from $546.7 million in the same period of 2023. However, net income for the nine months decreased to $61.6 million from $68.6 million in the prior year, primarily due to increased operating expenses and a lack of property dispositions compared to the previous year.

The company’s total assets increased to $4.4 billion as of September 30, 2024, from $4.2 billion at the end of 2023, while total liabilities rose to $2.7 billion from $2.5 billion. Cash and cash equivalents also improved, reaching $421.9 million compared to $353.9 million a year earlier.

Strategically, Empire State Realty OP has been active in acquisitions, notably acquiring a portfolio of retail properties in Williamsburg, Brooklyn, for $143 million in September 2024, with additional acquisitions planned. The company also executed a buyout of a 10% non-controlling interest in two multifamily properties for $14.2 million in cash earlier in the year.

The company faced challenges in the office real estate market, attributed to refinancing difficulties and increased loan costs. However, it maintains a diversified income portfolio and a strong financial position, with a weighted average interest rate of 4.27% on its $2.3 billion of consolidated indebtedness.

As of September 30, 2024, Empire State Realty OP had a total capital of $1.76 billion, reflecting a slight increase from $1.73 billion at the end of 2023. The company continues to focus on enhancing its portfolio and managing its financial health amid evolving market conditions.