Empire State Realty: Positive Leasing Spreads On Healthy Manhattan Office Market

Pacifica Yield13.89K FollowersFollow5ShareSavePlay(7min)CommentsSummaryEmpire State Realty Trust trades at a historically low 5.6x multiple to FFO despite resilient Manhattan leasing and NOI growth.ESRT has maintained positive leasing spreads for 18 consecutive quarters, with its office occupancy at 89.9% and total commercial occupancy at 90.3%.Dividend yield is 2.71%, below the US 10-year Treasury, making ESRT more of an FFO recovery play than an income play.I rate ESRT a Buy, supported by manageable debt maturities, growing retail exposure, and discounted valuation versus broader market headwinds. StockByM/iStock via Getty Images Empire State Realty Trust, Inc. (ESRT) has lost around 40% of its value from its 52-week high to open up an extremely low multiple to FFO as the Manhattan-focused mixed property REIT continues to experienceThis article was written byPacifica Yield13.89K FollowersFollowThe equity market is a powerful mechanism as daily fluctuations in price get aggregated to incredible wealth creation or destruction over the long term. Pacifica Yield aims to pursue long-term wealth creation with a focus on undervalued yet high-growth companies, high-dividend tickers, REITs, and green energy firms.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. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.