Empire State Realty faces NYSE compliance issues

NEW YORK - Empire State Realty Trust, Inc. (NYSE:ESRT) and its operating partnership, Empire State Realty OP, L.P., have been notified by the New York Stock Exchange (NYSE) and NYSE Arca, Inc., respectively, of their non-compliance with certain listing standards due to the delayed filing of their quarterly financial report.

The notifications, dated August 15 and 16, 2024, were issued after the entities failed to submit their Form 10-Q for the quarter ending June 30, 2024, on time. The delay follows an internal post-audit quality review by Ernst & Young LLP, the independent accounting firm for the Issuers, which revealed deficiencies in the design of specific information technology general controls relevant to the preparation of consolidated financial statements as of December 31, 2023.

Both the NYSE and NYSE Arca have indicated that the Issuers can regain compliance by filing the overdue Form 10-Q within six months of the original due date. Failure to do so may lead to the possibility of an additional six-month trading period, after which suspension and delisting procedures could be initiated if compliance is not achieved.

Empire State Realty Trust, a real estate investment trust (REIT) with a focus on New York City, is known for its ownership of the Empire State Building. The company's portfolio includes approximately 7.9 million rentable square feet of office space, 0.7 million rentable square feet of retail space, and 727 residential units.

The Issuers are working with Ernst & Young to assess the impact of the identified control deficiencies and plan to file the Form 10-Q as soon as possible to regain compliance with the NYSE listing standards.

The press release also contains forward-looking statements about the Issuers' expectations regarding the filing of the Form 10-Q and their ability to meet the NYSE's compliance requirements. These statements are subject to various risks and uncertainties that could affect the Issuers' actual results.

This news is based on a press release statement from Empire State Realty Trust, Inc.

InvestingPro Insights

Amidst the recent news of Empire State Realty Trust's (NYSE:ESRT) non-compliance with NYSE listing standards due to a delayed financial report, investors may be evaluating the company's financial health and market performance. According to InvestingPro data, Empire State Realty Trust has a market capitalization of $2.73 billion and a P/E ratio of 33.31, which indicates that the company is trading at a high earnings multiple. This metric suggests investors are willing to pay more for each dollar of ESRT's earnings compared to the market average.

However, the company's fundamentals show some positive signs. The InvestingPro Tips highlight that Empire State Realty Trust has liquid assets that exceed its short-term obligations, which can be a reassuring sign for investors concerned about the company's ability to meet its immediate financial liabilities. Additionally, the company has been profitable over the last twelve months, which may provide some confidence in its ongoing operations despite the recent filing delay.

Investors looking for additional insights into Empire State Realty Trust's performance and valuation can find more InvestingPro Tips by visiting the dedicated page for ESRT at https://www.investing.com/pro/ESRT. The platform lists several additional tips that can help investors make more informed decisions.

With the company's revenue growth over the last twelve months standing at 6.68% and a gross profit margin of 54.63%, these figures could be of interest to investors assessing the company's efficiency in generating profits from its revenues. These metrics, coupled with the InvestingPro Fair Value estimate of $9.08, which is below the previous close price of $10.07, might also influence investor sentiment regarding the stock's valuation.

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