Empire State Realty Trust, Inc.ESRT
Empire State Realty Trust, Inc. Debt Disclosure
Debt
Debt consisted of the following:
| Principal Balance | As of December 31, 2025 | ||||||||||||||||||||||||||||
| (amounts in thousands) | December 31, 2025 | December 31, 2024 | Stated Rate | Effective Rate(1) | Maturity Date(2) | ||||||||||||||||||||||||
| Fixed rate mortgage debt: | |||||||||||||||||||||||||||||
| 10 Union Square | $ | 50,000 | $ | 50,000 | 3.70 | % | 3.97 | % | 4/1/2026 | ||||||||||||||||||||
| 1542 Third Avenue | 30,000 | 30,000 | 4.29 | % | 4.53 | % | 5/1/2027 | ||||||||||||||||||||||
| 1010 Third Avenue and 77 West 55th Street | 33,102 | 34,048 | 4.01 | % | 4.21 | % | 1/5/2028 | ||||||||||||||||||||||
| Metro Center | — | 71,600 | — | — | — | ||||||||||||||||||||||||
| 250 West 57th Street | 180,000 | 180,000 | 2.83 | % | 3.21 | % | 12/1/2030 | ||||||||||||||||||||||
| 1333 Broadway | 160,000 | 160,000 | 4.21 | % | 4.29 | % | 2/5/2033 | ||||||||||||||||||||||
| 345 East 94th Street - Series A | 43,600 | 43,600 | 70% of SOFR plus 0.95% | 3.56 | % | 11/1/2030 | |||||||||||||||||||||||
| 345 East 94th Street - Series B | 5,704 | 6,490 | SOFR plus 2.24% | 3.56 | % | 11/1/2030 | |||||||||||||||||||||||
| 561 10th Avenue - Series A | 114,500 | 114,500 | 70% of SOFR plus 1.07% | 3.85 | % | 11/1/2033 | |||||||||||||||||||||||
| 561 10th Avenue - Series B | 12,105 | 14,036 | SOFR plus 2.45% | 3.85 | % | 11/1/2033 | |||||||||||||||||||||||
| Total fixed rate mortgage debt | 629,011 | 704,274 | |||||||||||||||||||||||||||
Senior unsecured notes: (3) | |||||||||||||||||||||||||||||
| Series A | — | 100,000 | — | — | — | ||||||||||||||||||||||||
| Series B | 125,000 | 125,000 | 4.09 | % | 4.12 | % | 3/27/2027 | ||||||||||||||||||||||
| Series C | 125,000 | 125,000 | 4.18 | % | 4.21 | % | 3/27/2030 | ||||||||||||||||||||||
| Series D | 115,000 | 115,000 | 4.08 | % | 4.11 | % | 1/22/2028 | ||||||||||||||||||||||
| Series E | 160,000 | 160,000 | 4.26 | % | 4.27 | % | 3/22/2030 | ||||||||||||||||||||||
| Series F | 175,000 | 175,000 | 4.44 | % | 4.45 | % | 3/22/2033 | ||||||||||||||||||||||
| Series G | 100,000 | 100,000 | 3.61 | % | 4.89 | % | 3/17/2032 | ||||||||||||||||||||||
| Series H | 75,000 | 75,000 | 3.73 | % | 5.00 | % | 3/17/2035 | ||||||||||||||||||||||
| Series I | 155,000 | 155,000 | 7.20 | % | 7.39 | % | 6/17/2029 | ||||||||||||||||||||||
| Series J | 45,000 | 45,000 | 7.32 | % | 7.46 | % | 6/17/2031 | ||||||||||||||||||||||
| Series K | 25,000 | 25,000 | 7.41 | % | 7.52 | % | 6/17/2034 | ||||||||||||||||||||||
| Series L | 175,000 | — | 5.47 | % | 5.70 | % | 1/7/2031 | ||||||||||||||||||||||
Unsecured term loan facility (3) | 245,000 | 175,000 | SOFR plus 1.50% | 4.46 | % | 1/15/2031 | |||||||||||||||||||||||
Unsecured term loan facility (3) | 95,000 | 95,000 | SOFR plus 1.50% | 5.16 | % | 3/8/2029 | |||||||||||||||||||||||
Unsecured revolving credit facility (3) | 145,000 | 120,000 | SOFR plus 1.30% | 4.98 | % | 3/8/2029 | |||||||||||||||||||||||
| Total principal | 2,389,011 | 2,294,274 | |||||||||||||||||||||||||||
| Deferred financing costs, net | (11,878) | (10,123) | |||||||||||||||||||||||||||
| Unamortized debt discount | (5,402) | (6,183) | |||||||||||||||||||||||||||
| Total | $ | 2,371,731 | $ | 2,277,968 | |||||||||||||||||||||||||
______________
(1)The effective rate is the yield as of December 31, 2025 and includes the stated interest rate, deferred financing cost amortization and interest associated with variable to fixed interest rate swap agreements in effect as of December 31, 2025.
(2)Maturity dates presented are inclusive of extension options. Pre-payment is generally allowed for each loan upon payment of a customary pre-payment penalty.
(3)At December 31, 2025, we were in compliance with all debt covenants.
Principal Payments
Aggregate required principal payments at December 31, 2025 are as follows (amounts in thousands):
| Year | Amortization | Maturities | Total | ||||||||||||||
| 2026 | $ | 3,958 | $ | 50,000 | $ | 53,958 | |||||||||||
| 2027 | 4,276 | 155,000 | 159,276 | ||||||||||||||
| 2028 | 3,555 | 146,091 | 149,646 | ||||||||||||||
| 2029 | 3,890 | 395,000 | 398,890 | ||||||||||||||
| 2030 | 4,511 | 508,600 | 513,111 | ||||||||||||||
| Thereafter | 10,123 | 1,104,007 | 1,114,130 | ||||||||||||||
| Total | $ | 30,313 | $ | 2,358,698 | $ | 2,389,011 | |||||||||||
Deferred Financing Costs
Deferred financing costs, net, consisted of the following:
| (amounts in thousands) | December 31, 2025 | December 31, 2024 | |||||||||
| Deferred financing costs, included as a component of net debt | $ | 17,207 | $ | 36,309 | |||||||
| Deferred financing costs, included as a component of net deferred costs (See Note 4) | 16,638 | 16,638 | |||||||||
| Total deferred financing costs | 33,845 | 52,947 | |||||||||
| Less: accumulated amortization | (15,228) | (33,970) | |||||||||
| Total deferred financing costs, net | $ | 18,617 | $ | 18,977 | |||||||
The total amortization expense related to deferred financing costs consisted of the following:
| Year ended December 31, | |||||||||||||||||
| (amounts in thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| Amortization of deferred financing costs | $ | 4,428 | $ | 4,278 | $ | 4,355 | |||||||||||
Unsecured Revolving Credit and Term Loan Facilities
On November 14, 2025, through our Operating Partnership, we entered into an amended and restated credit agreement with Wells Fargo Bank, National Association, as administrative agent, and the other lenders party thereto, that amends and restates the credit agreement dated March 19, 2020, which governs our senior unsecured term loan credit facility (the “Wells Term Loan Facility”). The Wells Term Loan Facility is comprised of a senior unsecured term loan credit facility and matures on January 15, 2031, inclusive of two month extensions. Initial interest rates on the Wells Term Loan Facility, which may change based on our leverage levels, is SOFR plus 150 basis points. We may request the Wells Term Loan Facility be increased through one or more increases or the addition of new pari passu term loan tranches, for a maximum aggregate principal amount not to exceed $310.0 million. As of December 31, 2025, our borrowings amounted to $245.0 million under the Wells Term Loan Facility.
On May 28, 2025, through our Operating Partnership, we entered into a first amendment to our second amended and restated credit agreement, dated March 8, 2024, with Bank of America, N.A., as administrative agent and other lenders party thereto, which governs our senior unsecured revolving credit facility and term loan facility (collectively, the “BofA Credit Facilities”). The first amendment amends certain sustainability margin adjustment terms. No other changes were made to the amount of the commitments, the maturity date of the outstanding loans or the covenants. The BofA Credit Facilities are comprised of a $620.0 million senior unsecured revolving credit facility (the “Revolving Credit Facility”) and a $95.0 million term loan facility (the “BofA Term Loan Facility”). We may request that the BofA Credit Facilities be increased through one or more increases in the Revolving Credit Facility or one or more increases in the BofA Term Loan Facility or the addition of new pari passu term loan tranches, for a maximum aggregate principal amount under the second amended and restated credit agreement not to exceed $1.5 billion.
The Revolving Credit Facility matures on March 8, 2029, inclusive of two six-month extension periods. The BofA Term Loan Facility matures on March 8, 2029, inclusive of two twelve-month extension periods. Initial interest rates on the BofA Credit Facilities, which may change based on our leverage levels, are SOFR plus a benchmark adjustment of 10 basis points ("adjusted SOFR") plus 130 basis points for any drawn portion of the Revolving Credit Facility and adjusted SOFR plus 150 basis points for the BofA Term Loan Facility. In addition, the BofA Credit Facilities have a sustainability-linked pricing mechanism that reduces the borrowing spread if certain benchmarks are achieved each year. As of December 31, 2025, we had $145.0 million borrowings under the Revolving Credit Facility and $95.0 million under the BofA Term Loan Facility.
The terms of both the BofA Credit Facilities and the Wells Term Loan Facility include customary covenants, including limitations on liens, investment, distributions, debt, fundamental changes, and transactions with affiliates and require certain customary financial reports. Both facilities also require compliance with financial ratios including a maximum leverage ratio, a maximum secured leverage ratio, a minimum fixed charge coverage ratio, a minimum unencumbered interest coverage ratio, and a maximum unsecured leverage ratio. The agreements governing both facilities also contain customary events of default (subject in certain cases to specified cure periods), including but not limited to non-payment, breach of covenants, representations or warranties, cross defaults, bankruptcy or other insolvency events, judgments, ERISA events, invalidity of
loan documents, loss of REIT qualification, and occurrence of a change of control. As of December 31, 2025, we were in compliance with these covenants.
Senior Unsecured Notes
On December 18, 2025, we closed on the issuance and sale of $175.0 million aggregate principal amount of 5.47% Series L Senior Notes due January 7, 2031.
On March 27, 2025, the Series A senior unsecured notes matured and the aggregate principal amount of $100.0 million was repaid. The notes had a stated interest rate of 3.93%.
The terms of these senior unsecured notes include customary covenants, including limitations on liens, investment, distributions, debt, fundamental changes, and transactions with affiliates and require certain customary financial reports. The terms also require compliance with financial ratios including a maximum leverage ratio, a maximum secured leverage ratio, a minimum fixed charge coverage ratio, a minimum unencumbered interest coverage ratio, and a maximum unsecured leverage ratio. The agreement also contains customary events of default (subject in certain cases to specified cure periods), including but not limited to non-payment, breach of covenants, representations or warranties, cross defaults, bankruptcy or other insolvency events, judgments, ERISA events, the occurrence of certain change of control transactions and loss of REIT qualification. As of December 31, 2025, we were in compliance with these covenants.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2017 | Feb 28, 2018 | |
| 2015 | Feb 26, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.