Empire State Realty OP, L.P. reported its financial results for the second quarter and the first half of 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period. For the three months ended June 30, 2024, total revenues decreased slightly to $189.5 million from $190.5 million in the same period of 2023, reflecting a 0.5% decline. Rental revenue also fell by 1.4%, from $154.6 million to $152.5 million. However, the Observatory segment saw a 2.1% increase in revenue, rising to $34.1 million, attributed to higher visitation rates.

Total operating expenses for Q2 2024 increased by 4.0% to $150.2 million, up from $144.4 million in Q2 2023. This rise in expenses contributed to a significant drop in net income, which fell 22.7% to $28.6 million from $37.0 million year-over-year. Net income attributable to common unitholders also decreased by 23.4%, from $35.9 million to $27.5 million, resulting in earnings per unit of $0.10, down from $0.14.

For the six months ended June 30, 2024, total revenues increased by 4.4% to $370.7 million, compared to $355.2 million in the prior year. Rental revenue for this period rose by 4.0% to $306.4 million, while Observatory revenue increased by 5.6% to $58.7 million. Operating income for the first half of 2024 improved by 10.6% to $70.4 million, up from $63.7 million in 2023. However, net income for the six months decreased to $38.8 million from $48.6 million in the previous year.

Strategically, the company made several acquisitions, including a retail property in Williamsburg, Brooklyn, for $26.4 million in September 2023, and a buyout of a partner's 10% interest in two multifamily properties for $14.2 million in March 2024. Additionally, in July 2024, Empire State Realty entered into agreements to acquire two prime retail portfolios in Williamsburg for $195 million, expected to close in Q3 2024.

The company also reported a significant increase in cash and cash equivalents, rising to $535.5 million as of June 30, 2024, compared to $395.8 million a year earlier. This increase was supported by net cash provided by operating activities, which rose to $108.1 million, up from $106.0 million in the prior year. However, net cash used in investing activities increased significantly to $127.7 million, primarily due to the acquisition of non-controlling interests and the absence of property dispositions.

Overall, while Empire State Realty OP, L.P. experienced growth in total revenues and rental income for the first half of 2024, profitability metrics showed declines, reflecting increased operating expenses and strategic investments.