Empire State Realty OP, L.P. (ESBA) AI Stock Analysis
ESBA AI stock analysis summary
AI ResearchEmpire State Realty OP, L.P. is a commercial real estate subsidiary owning office and retail properties in the New York metropolitan area, including the Empire State Building. Over the trailing twelve months, the company generated $782.8M in revenue with a net profit margin of 1.2%. The balance sheet holds $2.26B in total debt against $85.6M in cash and short-term investments.
- Market cap
- $1.29B
- Revenue (TTM)
- $782.8M
- P/E
- 230.0x
- 1Y return
- -33.0% S&P 500 16.8%
- Avg. target
- —
Bull case
- The company generated $249.1M in operating cash flow in FY2025, maintaining positive free cash flow of $50.6M.
- ESBA trades at an EV-to-EBITDA multiple of 10.4x, which is lower than the US-listed Real Estate peer median of 14.7x.
- The business beat consensus earnings per share expectations in all of the last 4 quarters.
Bear case
- Quarterly earnings fell 85.5% year-over-year in the latest quarter ending June 30, 2026.
- Total debt stands at $2.26B relative to a cash balance of $85.6M, resulting in net debt of $2.18B.
- Annualized dividend growth over the past 5 years has dropped 7.8%.
What Empire State Realty OP does
Empire State Realty OP, L.P. operates as a subsidiary of Empire State Realty Trust, Inc., focusing on the ownership, management, and operation of office and retail properties. Its portfolio is concentrated in prime locations across Manhattan and the greater New York metropolitan area, highlighted by the historic Empire State Building. The company provides a combination of classic architecture and modern amenities to serve a diverse roster of commercial tenants. Through the governance and resources of its parent real estate investment trust, Empire State Realty OP, L.P. supports property management, tenant relations, and operational initiatives.
Growth and profitability
Revenue increased from $624.1M in FY2021 to $768.3M in FY2025, reflecting a 5-year compound annual growth rate of 4.7%. Revenue growth flattened to 0.0% in FY2025 as net income declined to $47.6M from $80.4M in FY2024. Gross margin dropped to 1.8% in FY2025 compared to 53.9% in the prior year, while operating margin settled at 17.7%. For the trailing twelve months ended June 30, 2026, revenue stood at $782.8M with diluted earnings per share of $0.02. In the latest quarter, revenue grew 3.2% year-over-year, while quarterly earnings fell 85.5%.
Balance sheet and cash flow
As of June 30, 2026, the company held $85.6M in cash and short-term investments against $2.26B in total debt, resulting in net debt of $2.18B. Shareholders' equity was $1.79B, with a debt-to-equity ratio of 1.26 and a current ratio of 6.81. In FY2025, operating cash flow reached $249.1M, supporting capital expenditures of $198.5M and free cash flow of $50.6M. Cash allocations during FY2025 included $39.0M in dividends paid and $8.1M in share buybacks.
Valuation and performance
ESBA trades at a trailing price-to-earnings multiple of 230.0x, compared to 21.6x for the median of its US-listed Real Estate peers. Its enterprise value to EBITDA multiple of 10.4x sits below the peer group median of 14.7x, while its price-to-sales ratio stands at 1.6x versus the peer median of 3.7x. The stock trades at a price-to-book ratio of 0.6x with an enterprise value of $3.32B. Over the past year, the shares returned -33.0%, while the S&P 500 (SPY) returned 16.8%.
ESBA dividend
The company pays a quarterly dividend with a forward annual payout of $0.14 per share, representing a dividend yield of 3.04%. Empire State Realty OP, L.P. has paid dividends for 14 consecutive years. However, its 5-year annualized dividend growth rate is -7.8%. The most recent ex-dividend date was September 15, 2026.
What analysts expect
The company has beaten earnings per share estimates in each of the last 4 quarters. The stock closed at $4.60 on October 16, 2026, which is 11.3% below its 200-day moving average. Institutional investors own 8.7% of the shares, while insider ownership is reported at 0.0%.
Key risks and what to watch
- Gross margin compressed sharply to 1.8% in FY2025 from 53.9% in FY2024.
- The debt-to-equity ratio sits at 1.26 with $2.18B in net debt against $1.29B in market capitalization.
- The stock has lagged broader benchmarks, returning -53.4% over 5 years compared to an 83.0% return for the S&P 500.
- Profit margin for the trailing twelve months was thin at 1.2%.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this ESBA AI stock analysis
This page is an AI-written research summary of Empire State Realty OP, L.P. (ESBA). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: ESBA income statement, ESBA balance sheet, ESBA key metrics, ESBA chart. See the ESBA stock overview for the latest quote and news.
ESBA AI stock analysis FAQ
What dividend does Empire State Realty OP, L.P. pay?
The stock pays an annual forward dividend of $0.14 per share on a quarterly schedule, which yields 3.04%. It has paid a dividend for 14 consecutive years, though its 5-year dividend growth rate is -7.8%.
How much debt does the company have?
As of June 30, 2026, the company held $2.26B in total debt and $85.6M in cash and short-term investments, resulting in net debt of $2.18B and a debt-to-equity ratio of 1.26.
What is the valuation of ESBA relative to peers?
ESBA trades at a trailing price-to-earnings ratio of 230.0x and an EV-to-EBITDA ratio of 10.4x, compared to medians of 21.6x and 14.7x, respectively, for its US-listed Real Estate peers.
How has the stock performed over the past year?
ESBA declined 33.0% over the trailing 1-year period as of October 16, 2026, while the S&P 500 rose 16.8% over the same duration.