other material
confidence high
sentiment positive
materiality 0.55
ESRT: Flagstar Bank assumes 313,109 sq ft Signature Bank lease at 1400 Broadway
Empire State Realty Trust, Inc.
- Flagstar assumes lease through 2039; approx $3/sq ft rent reduction for first 5 years (~1.5% over life).
- ESRT to reverse $5.8M of $6.4M straight-line reserve taken in Q1 2023 during Q2 2023.
- Combined ~$0.02/share impact on 2023 annual FFO; full guidance update with Q2 earnings.
- Lease assumption removes significant vacancy risk at 1400 Broadway property.