On April 8, Empire State Realty Trust Inc. (ESRT) finally made a comeback in the after-hours session to gain 7.01%. Thus, the stock was trading at a price of $9.47 per share in late trading on Friday. This rebound came after a continuous downfall of the stock extending over almost two weeks. Moreover, the company announced a community solar project on Thursday.
What is Going on with ESRT?
ESRT stock had been bearish since the end of March 2022 with losses continued till the after-hours trading on Friday. While the continued downfall was posing the stock for a comeback sooner or later, the company’s latest news might also have had a role to play in the comeback. It seems investors began buying the dip while the company shared the plan for a community solar project in one of its N.Y. property locations.
Solar Project in N.Y.
The company recently shared its plan for a solar project at its office property at 500 Mamaroneck Avenue in Harrison, N.Y. Moreover, the next 25 years contracted project will be completed at no cost to the company while serving as a new revenue source. Featuring a parking canopy solar array with shelter for nearly 500 vehicles, it will have an 8.2-MWh battery storage system and over 80 EV charging stations. Thus, the project is an innovative mix of community solar, storage, and EV charging. This project falls under the company’s sustainability goal of net-zero carbon emissions by 2035.
Furthermore, the onsite renewable energy solutions provider, PowerFlex will be ESRT’s partner for the completion of the project.
Market Situation Post-Covid
The REIT sector has a mixed rating currently due to wide uncertainty. The pandemic while affecting every sector, caused a huge disruption in the real estate sectors, specifically office spaces or office REITs. Covid-19 resulted in a radical change towards remote working which caused a huge offset in the office REIT market. Presently, as the after-effects of the pandemic are near its end, work seems to b going back to normal. But there is an uncertainty still overshadowing the market as the possibility of remote work being adopted remains.
Moreover, the Russia-Ukraine conflict and soaring inflation plus interest rates have clouded the outlook on equity sectors.
The office REIT ESRT with its competitive edge of having the iconic Empire State Building under its name has furthered its edge with the latest innovative renewable energy project. But the larger market has an uncertain outlook that might overshadow encompassing REITs and their progress.