Empire State Realty Trust, Inc. (NYSE: ESRT) reported its financial results for the second quarter and the first half of 2024, highlighting a mixed performance 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 Q2 2023, a decline of 0.5%. Rental revenue also fell by 1.4% to $152.5 million, down from $154.6 million. However, observatory revenue increased by 2.1% to $34.1 million, driven by higher visitation and ticket prices.

Operating expenses rose by 4.0% to $150.2 million, leading to a 14.8% decrease in operating income, which fell to $39.4 million from $46.2 million. Net income for the quarter was $28.6 million, a 22.7% decline from $37.0 million in the same period last year. Net income attributable to common stockholders also decreased by 21.9% to $17.1 million, with earnings per share dropping to $0.10 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 the first half rose by 4.0% to $306.4 million, attributed to higher occupancy and escalations in operating and real estate tax expenses. However, net income for the six months decreased by 20.3% to $38.8 million from $48.6 million in 2023.

The company’s total assets as of June 30, 2024, were $4.4 billion, up from $4.2 billion at the end of 2023, while total liabilities increased to $2.7 billion from $2.5 billion. Stockholders' equity rose to $1.0 billion, reflecting a modest increase from $985.5 million at year-end 2023.

Strategically, Empire State Realty Trust has been active in 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. The company also entered into agreements for two prime retail portfolios in Brooklyn, totaling $195 million, expected to close in Q3 2024.

The company reported a net cash increase of $169.6 million for the first half of 2024, with cash and cash equivalents reaching $576.5 million. It also maintained a strong liquidity position with $500 million available under its unsecured revolving credit facility. However, the company noted challenges in the office real estate market due to refinancing difficulties and rising loan costs.