v3.25.4
Segment Reporting
 12 Months Ended
Dec. 31, 2025
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:
Year ended December 31, 2025
(amounts in thousands)
Real EstateObservatoryIntersegment EliminationTotal
Revenues:
Revenue, excluding third-party management and other fees$638,458 $128,329 $— $766,787 
Intercompany rental revenue76,306 — (76,306)— 
Total revenues, excluding third-party management and other fees714,764 128,329 (76,306)766,787 
Segment operating expenses:
Property operating expenses184,714 — — 184,714 
Observatory expenses— 38,237 — 38,237 
Other segment expenses(1)
142,066 76,306 (76,306)142,066 
Total segment operating expenses326,780 114,543 (76,306)365,017 
Net operating income387,984 13,786 — 401,770 
Segment assets$4,199,686 $269,275 $— $4,468,961 
(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.
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 revenues, excluding third-party management and other fees713,853 136,377 (83,477)766,753 
Segment operating expenses:
Property operating expenses179,175 — — 179,175 
Observatory expenses— 36,834 — 36,834 
Other segment expenses(1)
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 in the real estate segment include real estate taxes and ground rent expense and in the Observatory segment includes 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 revenues, excluding third-party management and other fees689,369 129,366 (80,514)738,221 
Segment operating expenses:
Property operating expenses167,324 — — 167,324 
Observatory expenses— 35,265 — 35,265 
Other segment expenses(1)
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 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:
Years Ended December 31,
(amounts in thousands)202520242023
Net Operating Income$401,770 $412,592 $399,205 
Add:
Gain on disposition of properties35,018 13,302 26,764 
Third-party management and other fees1,483 1,170 1,351 
Interest income8,748 21,298 15,136 
Less:
General and administrative expenses(72,842)(70,234)(63,939)
Depreciation and amortization(194,762)(184,818)(189,911)
Interest expense(103,133)(105,239)(101,484)
Interest expense associated with property in receivership(647)(4,471)— 
Loss on early extinguishment of debt(97)(553)— 
Income before Income Taxes$75,538 $83,047 $87,122