Boston, MA 05/09/2014 (wallstreetpr) – With real estate investment trusts (REITs) such as Empire State Realty Trust Inc (NYSE:ESRT) around, investors do not have to shop around so much that they may get a promising stock. REITs had a great quarter in the first three months of 2014, and the story that cuts across the industry is not strong just a profitable 1Q2014 but also a bright future.
The improving economic environment in the U.S. sees companies expanding to new sites while more jobs are leading to high demand for housing and REITs are enjoying every bit of these developments. In addition to demand for office, retail and residential spaces, prices are also encouraging, leading to strong margin improvements and support to the bottom-line.
For Empire State Realty Trust Inc (NYSE:ESRT) in this case, the company registered a strong 1Q2014 that was supported by widespread lease renewals and deals with high-dollar tenants. The company continued to gain strong support from prime locations that supported or even offset other segments.
Executive comments
According to CEO Anthony Malkin, the company is poised to replicate its 1Q performance that was characterized with strong lease results and even do more in the current quarter and beyond. In any case, the CEO believes that the company will continue to benefit from the strong management executions that led to strong results in 1Q despite the unfavorable weather condition that affected REITs. In addition, the company banks on its disciplined costs and expenses management to support consistent bottom-line growth in the balance of 2014 and into the future.
1Q and the difference it made
Empire State Realty Trust Inc (NYSE:ESRT) realized 1Q funds from operations (FFO) of $41.3 million or 17 cents diluted share. Net income in the quarter came in at $4.4 million or 5 cents per diluted share.
The quarter enjoyed strong occupancy rate whereby the total portfolio of 8.4 million sq ft of rentable space was more 87.2 percent occupied. That was a significant improvement from 86.1 percent in 4Q2013.
