Cash flow generation has deteriorated severely, with AFFO turning negative at -$23.6M in 2026Q2 and capital expenditures of $49.2M consuming 252% of operating cash flow, indicating that the company's distributable cash flow is insufficient to fund its operations and dividend.
Empire State Realty Trust, Inc. (ESRT) cash flow statement — 17-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 |
|---|
| Cash from Operations | 227.64M | 249.05M | 260.89M | 232.49M | 211.17M | 212.49M | 182.29M | 232.59M | 279.02M | 194.2M | 214.75M | 203.19M | 138.56M | -58.55M | 94.35M | 50.53M | 74.38M | 58.51M |
| Operating CF Growth % | -73.8% | -4.54% | 12.22% | 10.1% | -0.62% | 16.56% | -21.63% | -16.64% | 43.68% | -9.57% | 5.69% | 46.64% | 336.67% | -162.05% | 86.74% | -32.07% | 27.13% | - |
| Operating CF / Revenue % | 29.03% | 32.42% | 34.19% | 31.44% | 29.87% | 34.96% | 29.92% | 31.8% | 38.14% | 27.26% | 31.67% | 30.9% | 21.81% | -18.77% | 36.25% | 17.14% | 30.17% | 25.19% |
| Net Income | 7.27M | 47.6M | 80.36M | 53.24M | 63.21M | -13.04M | -22.89M | 84.29M | 66.54M | 63.58M | 52.39M | 34.67M | 27.14M | 38.01M | 48.64M | 60.24M | 46.12M | 41.84M |
| Depreciation & Amortization | 495.38M | 194.76M | 184.82M | 189.91M | 216.89M | 209.64M | 191.01M | 181.59M | 180.61M | 162.82M | 179.81M | 160.12M | 135.94M | 42.69M | 47.57M | 38.76M | 36.02M | 30.86M |
| Stock-Based Compensation | 65.56M | 25.17M | 21.7M | 20.03M | 21.01M | 20.26M | 25.5M | 20.86M | 18.79M | 14.1M | 9.73M | 5.48M | 3.72M | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -409.95M | -14.2M | -9.75M | -660K | -45.68M | -16.11M | 8.45M | -12.21M | -1.47M | 169K | -1.82M | -2.67M | 2.32M | -130.24M | -6.32M | -3.06M | -10.67M | 2.21M |
| Working Capital Changes | -16.36M | -4.28M | -16.23M | -30.03M | -44.27M | 3.8M | -5.78M | -30.13M | 14.56M | -32.93M | -25.36M | 5.59M | -30.57M | -9.01M | 4.46M | -55.7M | 2.9M | -16.4M |
| Cash from Investing | -699.23M | -550.01M | -397.12M | -77.34M | -230.89M | -212.74M | -143.12M | 149.74M | -643.02M | -224.6M | -181.84M | -142.32M | -299.06M | -676.76M | -108.28M | -60.53M | -34.84M | -38.62M |
| Acquisitions (Net) | -160.81M | 0 | -14.23M | 0 | 230.89M | 0 | 0 | -149.74M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | 0 | 0 | 0 | 0 | -115.63M | 0 | 0 | -2K | 0 | -1.63M | -453K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Sale of Investments | 75.69M | 0 | 0 | 0 | 11.01M | 0 | 0 | 400M | 0 | 0 | 538K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | -564.94M | -550.01M | -382.9M | -77.34M | -230.89M | -212.74M | -143.12M | 149.74M | -643.02M | 0 | 538K | -142.32M | 9.35M | -676.76M | -108.28M | 55K | -22.65M | 1.56M |
| Cash from Financing | 292.59M | 38.17M | 158.58M | -62.87M | -140.24M | -93.05M | 257.17M | -381.55M | 104.62M | -56.88M | 470.94M | -59.92M | 145.49M | 744.55M | -20.89M | 18.57M | -45.6M | -5.04M |
| Dividends Paid | -28.19M | -27.93M | -27.42M | -26.89M | -27.31M | -22.31M | -41.38M | -76.94M | -71.79M | -67.72M | -56.75M | -40.12M | -34.07M | -162.71M | -62.9M | -46.69M | -40.67M | -48.83M |
| Common Dividends | -23.99M | -23.73M | -23.22M | -22.68M | -23.11M | -18.11M | -37.18M | -75.19M | -70.85M | -66.79M | -55.81M | -39.18M | -33.6M | -162.71M | -62.9M | -46.69M | -40.67M | -48.83M |
| Debt Issuance (Net) | 75K | 1000K | 1000K | -1000K | -1000K | -1000K | 1000K | -1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K |
| Share Repurchases | -5.97M | -8.12M | 0 | -13.11M | -90.18M | -46.7M | -143.71M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -16.99M | -16.17M | -27.14M | -14.25M | -15.25M | -19.94M | -33.8M | -50.83M | -56.73M | -72.54M | -61.21M | -57.88M | -58.13M | -176.69M | -14.82M | -5.33M | -2.35M | 304K |
| Net Change in Cash | -8.51M | -262.79M | 22.35M | 92.28M | -159.96M | -93.3M | 296.34M | 784K | -259.38M | -90.03M | 507.69M | 953K | -15.01M | 9.24M | -34.82M | 116.76M | -6.06M | 14.86M |
| Exchange Rate Effect | 170.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 118.48M | 0 | 0 |
| Cash at Beginning | 106.15M | 429.3M | 406.96M | 314.68M | 474.64M | 567.94M | 271.6M | 270.81M | 530.2M | 554.37M | 46.69M | 45.73M | 60.74M | 51.5M | 86.32M | 88.03M | 94.09M | 79.23M |
| Cash at End | 128.22M | 166.51M | 429.3M | 406.96M | 314.68M | 474.64M | 567.94M | 271.6M | 270.81M | 464.34M | 554.37M | 46.69M | 45.73M | 60.74M | 51.5M | 86.32M | 88.03M | 94.09M |
| Free Cash Flow | 103.84M | 50.55M | 260.89M | 232.49M | 84.91M | 117.45M | 39.17M | -17.66M | 36M | -31.56M | 36.21M | 60.99M | -169.84M | -745.82M | 94.35M | -10.05M | 62.19M | 18.33M |
| FCF Growth % | 66.29% | -80.62% | 12.22% | 173.82% | -27.71% | 199.81% | 321.79% | -149.07% | 214.07% | -187.16% | -40.63% | 135.91% | 77.23% | -890.46% | 1038.37% | -116.17% | 239.29% | - |
| FCF / Revenue % | 13.24% | 6.58% | 34.19% | 31.44% | 12.01% | 19.32% | 6.43% | -2.42% | 4.92% | -4.43% | 5.34% | 9.27% | -26.73% | -239.16% | 36.25% | -3.41% | 25.23% | 7.89% |
Quick answers to the most common questions about buying ESRT stock.
Empire State Realty Trust, Inc. (ESRT) generated $249.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Empire State Realty Trust, Inc. (ESRT) generated $50.6M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Empire State Realty Trust, Inc. (ESRT) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Empire State Realty Trust, Inc. (ESRT) returned $27.9M to shareholders via cash dividends and spent $8.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Negative AFFO sustainability
Metrics are mathematically derived from official filings.
AFFO Collapse Threatens Dividend Coverage
ESRT's AFFO turned sharply negative at -$23.6M in 2026Q2, a dramatic deterioration from the $28.1M generated in 2025Q4, suggesting the company's true distributable cash flow is now insufficient to cover its quarterly dividend of approximately $7.1M.
The negative AFFO in the most recent quarter indicates that after accounting for recurring capital expenditures like tenant improvements and leasing commissions, ESRT is not generating sufficient cash to fund its dividend, let alone reinvest in the portfolio. This represents a critical sustainability concern, as the company appears to be funding distributions from external sources or cash reserves rather than from core operations.
FFO Cash Conversion Quality Deteriorates
In 2026Q2, ESRT's FFO of $25.6M significantly exceeded its GAAP operating cash flow of $19.5M, a reversal from prior quarters where OCF typically exceeded FFO, suggesting potential non-cash adjustments or working capital headwinds are now impacting cash generation quality.
The FFO-to-OCF relationship has inverted, with FFO now running higher than operating cash flow. This divergence, coupled with the negative AFFO, suggests that the cash conversion quality of reported earnings has weakened. Investors should monitor whether this reflects temporary working capital timing or a more structural issue with collecting rents or managing property-level expenses.
Elevated CapEx Consumes Operating Cash Flow
ESRT's capital expenditures of $49.2M in 2026Q2 consumed 252% of its operating cash flow, a significant increase from the 40% ratio seen in 2025Q4, indicating that property-level investments are overwhelming the cash generated from operations.
The sharp increase in the capex-to-OCF ratio suggests either a planned acceleration in property improvements or potentially rising costs for tenant build-outs and leasing commissions. This level of capital intensity, when combined with the negative AFFO, indicates that the company's maintenance and growth capital needs are currently exceeding its operational cash generation capacity.
Depreciation Distortion Masks Cash Reality
ESRT's FFO/NI ratio of -0.79 in 2026Q2, compared to a positive 1.64 in 2025Q4, highlights how GAAP net income has become an unreliable indicator of cash performance, with depreciation and other non-cash items now creating significant divergence from operating reality.
The negative FFO/NI ratio in the latest quarter is particularly unusual and suggests that non-cash charges are now overwhelming the GAAP net loss, making FFO itself a less reliable proxy for cash earnings. This level of distortion warrants careful examination of the specific non-cash items driving the divergence, as it complicates the assessment of underlying operational performance.
Working Capital Volatility Impacts Cash Timing
The significant quarterly swings in operating cash flow, from $105.3M in 2025Q3 to $26.7M in 2025Q2 and back to $68.9M in 2026Q1, suggest material volatility in working capital components like tenant receivables and straight-line rent adjustments that obscure the underlying cash collection trend.
The erratic pattern in operating cash flow, which does not correlate with the more stable FFO trend, indicates that timing of rent collections, tenant receivables build-up, or straight-line rent adjustments are creating significant quarterly noise. This volatility makes it challenging to assess the true underlying cash generation trend and suggests investors should focus on longer-term averages rather than quarterly fluctuations.
What Could Invalidate the Base Case
The base case for ESRT's cash flow recovery is vulnerable to the risk that the negative AFFO trend persists, as the company's dividend payout ratio based on AFFO was only 24% in 2026Q1 but has now flipped to a negative coverage scenario, suggesting a potential need for dividend reduction or external funding.
The most significant risk to the cash flow outlook is that the negative AFFO in 2026Q2 is not a one-quarter anomaly but the beginning of a sustained trend. If recurring capital expenditures continue to outpace operating cash flow, ESRT may be forced to either cut its dividend, which would signal financial distress, or rely on debt or equity issuance to fund distributions, which would dilute shareholders or increase leverage. The extreme volatility in AFFO, swinging from positive $34.3M to negative $23.6M in two quarters, suggests the underlying cash flow model is highly sensitive to changes in capex timing or tenant improvement costs, making forward projections particularly uncertain.