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    US$500 Million Buyback and SoHo Deal Could Be A Game Changer For Empire State Realty Trust (ESRT)

    Simply Wall St·12/16/2025 20:29:01
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    • In early December 2025, Empire State Realty Trust announced a US$386 million all-cash acquisition of Scholastic’s SoHo headquarters building and its Board approved a fourth-quarter dividend of US$0.035 per share, alongside a new share repurchase authorization of up to US$500 million running through December 31, 2027.
    • Together, the SoHo purchase and sizable buyback plan highlight management’s willingness to redeploy capital into prime Manhattan assets while returning cash to investors through dividends and repurchases.
    • Next, we’ll examine how the US$500 million repurchase authorization may reshape Empire State Realty Trust’s existing investment narrative and risks.

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    Empire State Realty Trust Investment Narrative Recap

    To own Empire State Realty Trust, you need to believe in the resilience of high quality New York City real estate and the company’s ability to offset office and Observatory headwinds with thoughtful capital deployment. The Scholastic Building acquisition and new US$500 million repurchase authorization do not remove key near term risks around tourism driven Observatory softness and rising operating costs, but they may become near term catalysts if execution and leasing progress at SoHo remain on track.

    The new US$500 million share repurchase authorization, which runs through the end of 2027, is the most directly relevant announcement for investors weighing the current thesis. Its scale relative to recent earnings and ESRT’s share price performance could meaningfully influence per share metrics and the stock’s risk reward profile, particularly as the company balances this program against ongoing capital expenditure needs and the integration of the SoHo asset.

    Yet investors should be aware that rising real estate taxes and maintenance costs continue to pressure margins and could...

    Read the full narrative on Empire State Realty Trust (it's free!)

    Empire State Realty Trust's narrative projects $797.6 million revenue and $13.7 million earnings by 2028. This requires 1.5% yearly revenue growth and an earnings decrease of $26.7 million from $40.4 million today.

    Uncover how Empire State Realty Trust's forecasts yield a $8.55 fair value, a 22% upside to its current price.

    Exploring Other Perspectives

    ESRT 1-Year Stock Price Chart
    ESRT 1-Year Stock Price Chart

    Two fair value estimates from the Simply Wall St Community span roughly US$8.55 to US$13.28 per share, underscoring how far opinions can diverge. Against this, ESRT’s exposure to higher operating expenses and capital needs for modernizing assets may weigh on how each investor views the company’s ability to translate its NYC footprint into sustainable long term returns, so it can be useful to compare several of these viewpoints side by side.

    Explore 2 other fair value estimates on Empire State Realty Trust - why the stock might be worth just $8.55!

    Build Your Own Empire State Realty Trust Narrative

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.