Boston, MA 05/19/2014 (wallstreetpr) – The excitement in the real estate world is fast-catching up with Empire State Realty Trust Inc (NYSE:ESRT). The self-administered real estate investment trust (REIT) owns office and retail properties and its buildings enjoy good occupancy level. The recovery in the real estate market that recently saw REITs across the U.S. report positive 1Q sets ESRT on the right path to profitable as can be seen in the latest development.
The company is not only attracting more investors to its side because of its obvious positive prospects, but it also continues to ink deals with high-dollar tenants in a move that should support sustainable revenue growth and profitability in the company.
Empire State Realty Trust Inc (NYSE:ESRT), an REIT that grabbed news headlines last October with its $929. 5 million IPO, the second largest in the history of REIT, leased 10,842 square foot of office space at 100 First Stamford Place to travel company American Express Travel Related Services Company.
Following the deal, America Express will relocate from 400 Atlantic St. to take up the newly leased and built offices in the summer.
According to Jeffery Newman, SVP at Empire State Realty Trust Inc (NYSE:ESRT) that represented the landlord at signing of the American Express deal, the transaction brings to the company another prestigious tenant.
Portfolio enrichment
Empire State Realty Trust Inc (NYSE:ESRT) looks forward to attracting more prestigious tenants as it continues to enrich its portfolio. In addition to revamping of buildings, ESRT is also acquiring properties in strategic locations while adjusting portfolio in certain markets, in line with prospects.
The company owns a portfolio of 8.4 million square feet of office and retail rentable space. Its portfolio had 87.3 percent occupancy by the end of March 2014. That was better that 86.1 and 80 percent in December 31, 2013 and March 31, 2013, respectively.
Financial performance
Empire State Realty Trust Inc (NYSE:ESRT) ended 1Q2014 on a positive note. The company executed 50 leases in the three months to March, leading to total space lease of 191,000 square feet in the quarter. The leases included one retail lease and 49 office leases. The company ended 1Q with net income of $11.2 million.
The net income gain drew support from higher prices and occupancy rates experienced in the quarter. As such, CEO Anthony Malkin termed 1Q as positive start in 2014, meaning that the company looks forward to positive results in the balance of the year.
