Empire State Realty Trust: Expensive Valuation, Wait For A Better Entry Point

Summary

• Empire State Realty Trust offers investors exposure to NYC real estate, including office, retail, and multifamily properties, and the iconic Empire State Building.
• The REIT's diverse portfolio includes significant rentable office and retail space, along with 727 residential units, providing a balanced investment opportunity.
• Q2'24 results came in better than expected and the near-term outlook looks strong with occupancy gains ahead for the office portfolio.
• Compared to its peers, ESRT looks expensive and so investors should consider waiting for a better entry point before initiating a position.

Yongyuan Dai

Introduction

Empire State Realty Trust (NYSE:ESRT) is a REIT that offers investors a way to invest in New York City real estate. In the most recent quarter, ESRT showcased impressive performance, including mid-single digit growth in same-property net operating

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.