NEW YORK CITY-The recently formed Empire State Realty Trust has gone ahead and announced its portfolio's operational and performance metrics for the third quarter. The company completed its initial public offering on October 7th.
“Our portfolio demonstrated performance gains as we continued to implement our renovation, repositioning and leasing strategies,” says Anthony Malkin, chairman, CEO and president. “We believe our properties have competitive advantages, including excellent locations at attractive values, and our program to reposition and retrofit our Manhattan portfolio creates strong tenant demand and enhances our operating margins. We believe the successful completion of our formation transactions and IPO in October has given the pathway to full integration and positions us well for the future with an excellent balance sheet and operating platform.”
Among the quarter's highlights: the total portfolio was 85.7% leased, up 240 basis points from June 30, and the Manhattan office portfolio (excluding retail) was 83.7% leased, up 170 basis points. The Empire State Building was 82% leased, up 400 basis points from June 30.
ESRT executed 53 leases, representing 241,485 rentable square feet across the portfolio. After the third quarter 2013, the completed the IPO and formation transaction, including the issuance of 82.225 million shares, raising approximately $884.1 million net of offering costs, and closing on an $800 million secured revolving and term-credit facility.
The company's retail portfolio, containing approximately 645,000 rentable square feet, was 91.6% leased at the end of the third quarter 2013, which includes the commencement of a lease with Urban Outfitters at 1333 Broadway, representing 56,730 rentable square feet signed prior to June 30th. This compares to 80.4% at the end of the second quarter of 2013, and 85.6% at the end of the third quarter of 2012.
Significant leases that were executed during the third quarter included: a 64,361-square-foot lease with Gerson Lehrman Group—and a 12,720-square-foot lease with the law firm of Hafetz Necheles & Rocco—at One Grand Central Place; a 37,609-square-foot lease with Tarter Krinsky & Drogin at 1350 Broadway; and a 28,741-square-foot lease with Ariela-Alpha International at 1359 Broadway.
Meanwhile, the company continues to renovate and release the 2.9 million square foot Empire State Building. As of September 30th, the iconic tower was 82% leased.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
