Empire State Earnings: Occupancy Gains and Decent Leasing Activity Drive a Strong Quarter

No-moat-rated Empire State Realty reported a good set of numbers in the third-quarter results as core funds from operations, or FFO, was reported at $0.25 per share in the current quarter, around 19% higher than the $0.21 in core FFO during the same quarter last year. The shares of the company were up around 7% after the company released its third-quarter results. The demand for Manhattan office real estate remains muted because of macroeconomic factors and a slower recovery in physical office utilization rates, but the company has performed relatively well given the current environment. We are maintaining our fair value estimate of $9.50 per share for Empire State Realty after incorporating the third-quarter results.