XML 30 R19.htm IDEA: XBRL DOCUMENT v3.26.1
Segment Reporting
 3 Months Ended
Mar. 31, 2026
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.
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 net income for each segment:
Three Months Ended March 31, 2026
(amounts in thousands)Real EstateObservatoryIntersegment EliminationTotal
Revenues:
Revenue, excluding third-party management and other fees$171,538 $18,510 $— $190,048 
Intercompany rental revenue12,821 — (12,821)— 
Total revenues, excluding third-party management and other fees184,359 18,510 (12,821)190,048 
Segment operating expenses:
Property operating expenses47,744 — — 47,744 
Observatory expenses— 7,868 — 7,868 
Other segment expenses(1)
36,944 12,821 (12,821)36,944 
Total segment operating expenses84,688 20,689 (12,821)92,556 
Net operating income (loss)$99,671 $(2,179)$— $97,492 
Segment assets$4,142,347 $263,377 $— $4,405,724 
(1) Other segment expenses in the real estate segment include real estate taxes and ground rent expense and in the Observatory segment includes intercompany rent expense.
Three Months Ended March 31, 2025
(amounts in thousands)Real EstateObservatoryIntersegment EliminationTotal
Revenues:
Revenue, excluding third-party management and other fees$156,474 $23,161 $— $179,635 
Intercompany rental revenue15,160 — (15,160)— 
Total revenues, excluding third-party management and other fees171,634 23,161 (15,160)179,635 
Segment operating expenses:
Property operating expenses45,060 — — 45,060 
Observatory expenses— 8,118 — 8,118 
Other segment expenses(1)
35,381 15,160 (15,160)35,381 
Total segment operating expenses80,441 23,278 (15,160)88,559 
Net operating income (loss)$91,193 $(117)$— $91,076 
Segment assets$3,851,216 $263,164 $— $4,114,380 
(1) Other segment expenses in the real estate segment include real estate taxes and ground rent expense and in the Observatory segment includes intercompany rent expense.
Below is a reconciliation of Net operating income to Income before income taxes:
Three Months Ended March 31,
(amounts in thousands)20262025
(unaudited)
Net Operating Income$97,492 $91,076 
Add:
Gain on disposition of property— 13,170 
Third-party management and other fees277 431 
Interest income613 3,786 
Less:
General and administrative expenses(18,093)(16,940)
Depreciation and amortization(50,219)(48,779)
Interest expense(28,137)(26,938)
Interest expense associated with property in receivership— (647)
Income before Income Taxes$1,933 $15,159