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Segment Reporting
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company's operating segments are based on our method of internal reporting and include our office properties, retail portfolio, multifamily portfolio, and the Observatory. These operating segments have been aggregated for reporting into two reportable segments: (1) real estate and (2) Observatory. Our real estate segment includes all activities related to the ownership, management, operation, acquisition, redevelopment, repositioning and disposition of our traditional real estate assets. Our Observatory segment operates the 86th and 102nd floor observatories at the Empire State Building. These two lines of businesses are managed separately because each business requires different support infrastructures, provides different services and has dissimilar economic characteristics such as investments needed, stream of revenues and marketing strategies. We account for intersegment sales and rents as if the sales or rents were to third parties, that is, at current market prices.
Our Chief Executive Officer, who also serves as our CODM, manages our business, regularly accesses information, and evaluates performance for operating decision-making purposes, including allocation of resources. The CODM uses Net Operating Income ("NOI") to review actual performance and decide whether to invest in capital expenditures, pursue acquisitions and/or dispositions, determine dividend payments, and/or engage in other capital transactions. Our CODM does not evaluate operating segments using asset or liability information.
The following tables provide components of segment profit for each segment:
Year Ended December 31, 2024
(amounts in thousands)
Real EstateObservatoryIntersegment EliminationTotal
Revenues:
Revenue, excluding third-party management and other fees$630,376 $136,377 $— $766,753 
Intercompany rental revenue83,477 — (83,477)— 
Total revenues713,853 136,377 (83,477)766,753 
Segment operating expenses:
Property operating expenses179,175 — — 179,175 
Observatory expenses— 36,834 — 36,834 
Other segment expenses1
138,152 83,477 (83,477)138,152 
Total segment operating expenses317,327 120,311 (83,477)354,161 
Net operating income396,526 16,066 — 412,592 
Segment assets$4,242,953 $267,334 $— $4,510,287 
(1) Other segment expenses include real estate taxes, ground rent expense and intercompany rent expense.
Year Ended December 31, 2023
(amounts in thousands)
Real EstateObservatoryIntersegment EliminationTotal
Revenues:
Revenue, excluding third-party management and other fees$608,855 $129,366 $— $738,221 
Intercompany rental revenue80,514 — (80,514)— 
Total revenues689,369 129,366 (80,514)738,221 
Segment operating expenses:
Property operating expenses167,324 — — 167,324 
Observatory expenses— 35,265 — 35,265 
Other segment expenses1
136,427 80,514 (80,514)136,427 
Total segment operating expenses303,751 115,779 (80,514)339,016 
Net operating income385,618 13,587 — 399,205 
Segment assets$3,957,659 $261,674 $— $4,219,333 
(1) Other segment expenses include real estate taxes, ground rent expense and intercompany rent expense.
Year Ended December 31, 2022
(amounts in thousands)
Real EstateObservatoryIntersegment EliminationTotal
Revenues:
Revenue, excluding third-party management and other fees$619,702 $105,978 $— $725,680 
Intercompany rental revenue65,005 — (65,005)— 
Total revenues684,707 105,978 (65,005)725,680 
Segment operating expenses:
Property operating expenses157,935 — — 157,935 
Observatory expenses— 31,036 — 31,036 
Other segment expenses1
132,383 65,005 (65,005)132,383 
Total segment operating expenses290,318 96,041 (65,005)321,354 
Net operating income394,389 9,937 — 404,326 
Segment assets$3,909,299 $254,295 $— $4,163,594 
(1) Other segment expenses include real estate taxes, ground rent expense and intercompany rent expense.
Below is a reconciliation of Net income to Net operating income:
Years Ended December 31,
(amounts in thousands)202420232022
Net income
$80,359 $84,407 $63,212 
Add:
General and administrative expenses
70,234 63,939 61,765 
Depreciation and amortization
184,818 189,911 216,894 
Interest expense
105,239 101,484 101,206 
Interest expense associated with property in receivership
4,471 — — 
Loss on early extinguishment of debt
553 — — 
Income tax expense
2,688 2,715 1,546 
Less:
Gain on sale/disposition of properties(13,302)(26,764)(33,988)
Third-party management and other fees
(1,170)(1,351)(1,361)
Interest income
(21,298)(15,136)(4,948)
Net operating income
$412,592 $399,205 $404,326