Cash conversion efficiency is strained by heavy capital expenditures, as evidenced by the negative $25.3 million AFFO recorded in 2025Q2 and a significant decline in cash reserves from $535.5 million in 2024Q2 to $68.8 million in 2026Q1.
| 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 | 165.91M | 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 % | -157.87% | -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 % | 21.32% | 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 | 39.62M | 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 | 493.91M | 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 | 55.41M | 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 | -493.65M | -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 | -33.01M | -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 | -678.44M | -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) | 0 | 0 | 0 | 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 | 0 | 0 | 0 | 0 | 11.01M | 0 | 0 | 400M | 0 | 0 | 538K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | -678.44M | -550.01M | -397.12M | -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 | 271.14M | 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 | -21M | -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 | -17.85M | -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) | -832K | 1000K | 1000K | -1000K | -1000K | -1000K | 1000K | -1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K |
| Share Repurchases | -8.12M | -8.12M | 0 | -13.11M | -90.18M | -46.7M | -143.71M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -11.01M | -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 | -131.27M | -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 | 110.13M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 118.48M | 0 | 0 |
| Cash at Beginning | 166.51M | 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 | 106.15M | 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 | 9.47M | 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 % | -91.48% | -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 % | 1.22% | 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% |
High tenant improvement requirements
Based on reported financial statements, OGCP maintains a conservative dividend payout ratio, with the dividend-to-AFFO metric consistently hovering near 0.10, suggesting that the current distribution is well-covered by recurring cash flows despite the inherent volatility in the underlying office and observatory business segments.
The low payout ratio indicates that management prioritizes capital retention, which appears prudent given the significant maintenance requirements of the portfolio. Investors should monitor whether this retained cash is effectively deployed into accretive projects or if it merely serves as a buffer against potential future leasing downturns.
As reported in recent SEC filings, the company's recurring capital expenditures, including tenant improvements and leasing commissions, frequently exceed $40 million per quarter, which significantly compresses the gap between FFO and AFFO and highlights the high cost of maintaining occupancy in a competitive Manhattan office market.
The substantial quarterly capital outlays suggest that the portfolio requires constant reinvestment to remain relevant to modern tenants. This persistent cash outflow warrants further investigation into whether these expenditures are generating sufficient incremental returns or if they are simply defensive costs required to prevent further vacancy.
According to the provided data, the relationship between FFO and GAAP operating cash flow is highly inconsistent, with FFO-to-Net Income ratios reaching as high as 11.65 in 2025Q3, which suggests that non-cash depreciation charges are heavily distorting the reported GAAP earnings relative to actual cash generation.
The wide variance between these metrics implies that GAAP net income is a poor proxy for the company's true economic performance. Analysts should focus exclusively on FFO and AFFO to gauge the underlying health of the business, as the GAAP figures appear to be heavily influenced by accounting conventions rather than operational reality.
Data from recent quarterly reports reveals that the company's reliance on capitalizing significant tenant-related costs may be obscuring the true cash-on-cash return profile of the office portfolio, as evidenced by the negative AFFO of $25.3 million recorded during the 2025Q2 period.
This negative AFFO event suggests that the company's cash flow is susceptible to lumpy, high-cost leasing cycles that are not always smoothed out by standard accounting practices. Investors should be wary of the potential for these capitalized costs to eventually weigh on future cash availability if leasing demand continues to soften.
Quick answers to the most common questions about buying OGCP stock.
Empire State Realty OP, L.P. (OGCP) generated $249.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Empire State Realty OP, L.P. (OGCP) 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 OP, L.P. (OGCP) 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 OP, L.P. (OGCP) 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.