ESRT Stock Fair Value Calculation – Empire State Realty Trust Maintains Positive Outlook Despite Hazy Skies Above The Observatory
June 9, 2023
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Empire State Realty ($NYSE:ESRT) Trust (ESRT) is a publicly traded real estate investment trust (REIT) that owns, manages and operates iconic and historic properties within the New York metropolitan area. ESRT is best known for its flagship property, the iconic Empire State Building in New York City. Despite the current uncertainty and haziness surrounding the observation deck located in the Empire State Building, ESRT remains committed to providing a positive outlook for the future. The management at ESRT is taking steps to ensure that the observatory remains a positive and safe environment for visitors. This includes implementing safety protocols and precautions such as contactless entry, social distancing guidelines, and requiring facial coverings for visitors. They are also taking measures to ensure that their employees and tenants are in compliance with all local laws and regulations. Overall, ESRT maintains a positive outlook amid the current conditions despite the fact that the observatory remains closed until further notice. They are focused on developing strategies to safely reopen the observation deck while ensuring the health and safety of their guests.
In addition, ESRT is investing in the latest technologies to make their properties more efficient, sustainable, and attractive to potential customers and tenants. This is complemented by diversifying their tenant base to include new business ventures and retail opportunities. As ESRT moves forward, it remains committed to providing a positive outlook in spite of the hazy skies above the observatory. With a strong portfolio of iconic properties, strategic investments in cutting-edge technologies, and an innovative approach to tenant diversity, ESRT is poised to remain a leader in the real estate industry.
Market Price
The real estate investment trust opened its stock at $6.9 and closed at $6.9, down 1.2% from its previous closing price. This minor dip in share prices did not dent the trust’s overall confidence in the future of the real estate market, as evidenced by its recent progress in new acquisitions and developments. As the company continues to diversify its portfolio and capitalize on modern real estate trends, EMPIRE STATE REALTY TRUST expects to maintain a strong outlook despite current market conditions. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for ESRT. More…
| Total Revenues | Net Income | Net Margin |
| 727.63 | 54.26 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for ESRT. More…
| Operations | Investing | Financing |
| 211.17 | -230.89 | -140.24 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for ESRT. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.16k | 2.48k | 10.37 |
Key Ratios Snapshot
Some of the financial key ratios for ESRT are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | 19.0% |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis – ESRT Stock Fair Value Calculation
At GoodWhale, we conducted an in-depth analysis of EMPIRE STATE REALTY TRUST’s financials, and based on our proprietary Valuation Line, the intrinsic value of EMPIRE STATE REALTY TRUST share is around $7.7. However, EMPIRE STATE REALTY TRUST stock is currently traded at $6.9, a fair price undervalued by 10.2%. This presents an opportunity for investors to invest in a stock that is undervalued with a good potential upside. More…
Peers
ESRT’s portfolio includes the Empire State Building, the world’s most famous office building. The company also owns and manages a retail portfolio that comprises some of New York’s most iconic and historic shopping destinations. ESRT’s competitors include SL Green Realty Corp, Vornado Realty Trust, Hudson Pacific Properties Inc.
– SL Green Realty Corp ($NYSE:SLG)
SL Green Realty Corp is a real estate investment trust that focuses on acquiring, managing, and developing office properties in the United States. As of December 31, 2020, the company owned interests in 108 Manhattan buildings totaling 54.4 million square feet.
– Vornado Realty Trust ($NYSE:VNO)
Vornado Realty Trust is a publicly traded real estate investment trust (REIT) that owns, manages and develops commercial real estate, primarily in the United States. The company’s portfolio includes office buildings, retail space, hotels and other properties. Vornado’s market capitalization is $4.44 billion as of 2022. The company’s properties are located in major markets across the United States, including New York City, Washington, D.C., Chicago and San Francisco.
– Hudson Pacific Properties Inc ($NYSE:HPP)
Hudson Pacific Properties Inc is a real estate investment trust that focuses on acquiring, developing, and operating office properties in the United States. As of December 31, 2020, the company owned and operated approximately 39 million square feet of office space. Hudson Pacific Properties Inc is headquartered in Los Angeles, California.
Summary
Empire State Realty Trust (ESRT) has recently released a positive outlook for the company in spite of the pandemic. The company is focused on increasing their earnings, by increasing occupancy and enhancing the tenant experience. Furthermore, ESRT has implemented cost-saving measures to weather the storm, such as reducing operating costs and implementing new technological solutions. Overall, investors are optimistic about the company’s outlook and believe that the company will continue to yield strong returns in the future.
