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Deferred Costs, Acquired Lease Intangibles and Goodwill | 6 Months Ended
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Jun. 30, 2026
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] |
Deferred Costs, Acquired Lease Intangibles and Goodwill | Deferred Costs, Acquired Lease Intangibles and Goodwill Deferred costs, net, consisted of the following:
(amounts in thousands) | June 30, 2026 |  | December 31, 2025
Deferred leasing costs | $ | 220,968 |  |  | $ | 227,722 |
Acquired in-place lease value, acquired deferred leasing costs and deferred acquisition costs | 180,788 |  |  | 190,570 |
Acquired above-market leases | 54,340 |  |  | 57,569 |
Total deferred costs, excluding deferred financing costs | 456,096 |  |  | 475,861 |
Less: accumulated amortization | (204,126) |  |  | (214,917) |
Total deferred costs, net, excluding net deferred financing costs | 251,970 |  |  | 260,944 |
Deferred financing costs, net, of accumulated amortization of $10,958 and $9,900, respectively (See Note 5) | 6,196 |  |  | 6,738 |
Total deferred costs, net | $ | 258,166 |  |  | $ | 267,682 |
Acquired below-market leases, net, consisted of the following:
(amounts in thousands) | June 30, 2026 |  | December 31, 2025
Acquired below-market leases | $ | (63,802) |  |  | $ | (81,539) |
Less: accumulated amortization | 27,377 |  |  | 41,772 |
Acquired below-market leases, net | $ | (36,425) |  |  | $ | (39,767) |
The total amortization related to deferred costs and acquired lease intangibles consisted of the following:
| Three Months Ended June 30, |  | Six Months Ended June 30,
(amounts in thousands) | 2026 |  | 2025 |  | 2026 |  | 2025
Rental revenue: |  |  |  |  |  |  |
Amortization of below-market leases, net of above-market leases | $ | 384 |  |  | $ | 840 |  |  | $ | 1,054 |  |  | $ | 1,638 |
Depreciation and amortization: |  |  |  |  |  |  |
Amortization of deferred leasing costs and acquired deferred leasing costs | 4,751 |  |  | 5,128 |  |  | 9,671 |  |  | 10,497 |
Amortization related to acquired in-place lease value | 2,285 |  |  | 1,415 |  |  | 4,684 |  |  | 2,823 |
Goodwill consisted of the following:
(amounts in thousands) | Real Estate |  | Observatory |  | Total
Balance as of December 31, 2025 |  |  |  |  |
Goodwill | $ | 263,997 |  |  | $ | 227,482 |  |  | $ | 491,479 |
Accumulated impairment charges | — |  |  | — |  |  | — |
| 263,997 |  |  | 227,482 |  |  | 491,479 |
Goodwill impairment charge | — |  |  | (166,113) |  |  | (166,113) |
Balance as of June 30, 2026 |  |  |  |  |
Goodwill | 263,997 |  |  | 227,482 |  |  | 491,479 |
Accumulated impairment charges | — |  |  | (166,113) |  |  | (166,113) |
| $ | 263,997 |  |  | $ | 61,369 |  |  | $ | 325,366 |
During the second quarter of 2026, the Company identified triggering events indicating that the fair value of its Observatory reporting unit may have declined below its carrying amount, including goodwill, due to a sustained decline in visitor volume from a reduction in pass program performance and a continued decrease in international visitors. As a result of a decline in the projected performance and expected future cash flows of the Observatory reporting unit, the Company engaged a third-party valuation consulting firm and performed an interim quantitative goodwill analysis as of June 30, 2026. The quantitative analysis used a discounted cash flow method (a form of the income approach) utilizing Level 3 unobservable inputs. Significant assumptions under the income approach included revenue and cost projections, weighted average cost of capital and long-term growth rate. As a result of the quantitative analysis, the carrying value of the Observatory reporting unit, including goodwill, exceeded its estimated fair value, and the Company recognized a non-cash goodwill impairment charge of $166.1 million for the three and six months ended June 30, 2026, in the Company’s consolidated statements of operations. Although the Company does not currently anticipate significant changes in the assumptions used in the quantitative analysis, many of the assumptions underlying the estimated fair value of the Observatory reporting unit are inherently uncertain, are outside of our control, and actual results may differ materially from the Company’s estimates. The remaining goodwill relating to the Observatory reporting unit of $61.4 million remains at risk of future impairment if the fair value of the reporting unit decreases due to changes in the amount and timing of expected future cash flows, decreases in visitation in excess of expectations, an inability to execute management’s business strategies, or general market conditions, such as economic downturns and changes in interest rates, which may impact discount rates.

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