Empire State Realty Trust Receives Expected Notice From NYSE Related to Delayed Filing of Quarterly Report on Form 10-Q
Empire State Realty Trust (ESRT) and Empire State Realty OP (ESROP) have received notices from the NYSE and NYSE Arca, respectively, for non-compliance with listing standards due to delayed filing of their Q2 2024 Form 10-Q. The delay stems from Ernst & Young's identification of control deficiencies in the design of certain IT general controls relevant to financial statement preparation. Both issuers have six months to regain compliance by filing the Form 10-Q, with a possible additional six-month extension. Failure to comply could lead to suspension and delisting procedures. The companies are working diligently with EY to complete the assessment and file the Form 10-Q as soon as possible.
Empire State Realty Trust (ESRT) e Empire State Realty OP (ESROP) hanno ricevuto notifiche dalla NYSE e dalla NYSE Arca, rispettivamente, per non conformità agli standard di quotazione a causa del ritardo nella presentazione del loro Modulo 10-Q del Q2 2024. Il ritardo deriva dall'identificazione da parte di Ernst & Young di carenze nei controlli in merito alla progettazione di alcuni controlli generali IT pertinenti alla preparazione dei bilanci. Entrambi gli emittenti hanno sei mesi per recuperare la conformità presentando il Modulo 10-Q, con la possibilità di un ulteriore proroga di sei mesi. La mancata conformità potrebbe portare a procedure di sospensione e revoca della quotazione. Le aziende stanno lavorando diligentemente con EY per completare la valutazione e presentare il Modulo 10-Q il prima possibile.
Empire State Realty Trust (ESRT) y Empire State Realty OP (ESROP) han recibido notificaciones de la NYSE y de NYSE Arca, respectivamente, por incumplimiento de los estándares de cotización debido al retraso en la presentación de su Formulario 10-Q del Q2 2024. El retraso proviene de la identificación por parte de Ernst & Young de deficiencias de control en el diseño de ciertos controles generales de TI relevantes para la preparación de estados financieros. Ambos emisores tienen seis meses para recuperar la conformidad presentando el Formulario 10-Q, con una posible extensión adicional de seis meses. El incumplimiento podría llevar a procedimientos de suspensión y deslistado. Las empresas están trabajando diligentemente con EY para completar la evaluación y presentar el Formulario 10-Q lo antes posible.
엠파이어 스테이트 리얼티 트러스트 (ESRT)와 엠파이어 스테이트 리얼티 OP (ESROP)는 각각 NYSE와 NYSE Arca로부터 2024년 2분기 Form 10-Q 제출 지연으로 인해 상장 기준 미준수에 대한 통지를 받았습니다. 이 지연은 어니스트 앤 영이 특정 IT 일반 통제의 설계에서 통제 결함을 발견한 것에서 비롯됩니다. 두 발행자는 Form 10-Q를 제출하여 미준수를 회복할 수 있는 6개월의 시간을 가지고 있으며, 추가로 6개월의 연장이 가능합니다. 미준수 시 상장 정지 및 퇴출 절차로 이어질 수 있습니다. 두 회사는 EY와 협력하여 평가를 완료하고 가능한 한 빨리 Form 10-Q를 제출하기 위해 열심히 노력하고 있습니다.
Empire State Realty Trust (ESRT) et Empire State Realty OP (ESROP) ont reçu des notifications de la NYSE et de la NYSE Arca, respectivement, pour non-conformité aux normes de cotation en raison du retard dans le dépôt de leur Formulaire 10-Q pour le T2 2024. Ce retard provient de l'identification par Ernst & Young de lacunes de contrôle dans la conception de certains contrôles généraux des technologies de l'information pertinents pour la préparation des états financiers. Les deux émetteurs ont six mois pour rétablir leur conformité en déposant le Formulaire 10-Q, avec la possibilité d'une extension supplémentaire de six mois. Le non-respect pourrait entraîner des procédures de suspension et de délistage. Les entreprises travaillent assidûment avec EY pour finaliser l'évaluation et déposer le Formulaire 10-Q dès que possible.
Empire State Realty Trust (ESRT) und Empire State Realty OP (ESROP) haben von der NYSE und NYSE Arca jeweils Mitteilungen über die Nichteinhaltung der Zulassungsstandards aufgrund der verspäteten Einreichung ihres Q2 2024 Formulars 10-Q erhalten. Die Verzögerung ergibt sich aus der Identifizierung von Kontrollmängeln durch Ernst & Young in Bezug auf das Design bestimmter allgemeiner IT-Kontrollen, die für die Erstellung von Finanzberichten relevant sind. Beide Emittenten haben sechs Monate Zeit, um die Konformität wiederherzustellen und das Formular 10-Q einzureichen, mit der Möglichkeit einer zusätzlichen Verlängerung um sechs Monate. Ein Verstoß könnte zu Aussetzungs- und Delisting-Verfahren führen. Die Unternehmen arbeiten intensiv mit EY zusammen, um die Bewertung abzuschließen und das Formular 10-Q so schnell wie möglich einzureichen.
- ESRT and ESROP have six months to regain compliance with NYSE listing standards
- Possibility of an additional six-month extension for compliance
- Delayed filing of Q2 2024 Form 10-Q
- Identification of control deficiencies in IT general controls by Ernst & Young
- Non-compliance with NYSE and NYSE Arca listing standards
- Risk of suspension and delisting if compliance is not regained
Insights
This news reveals significant control deficiencies in Empire State Realty Trust's financial reporting systems, leading to delayed SEC filings and potential NYSE delisting risks. The inability to file the Q2 2024 10-Q on time raises red flags about the company's internal controls and financial management practices. This situation could negatively impact investor confidence and the company's stock performance in the short term. The six-month grace period provides some breathing room, but the company needs to act swiftly to address these issues and regain compliance. Investors should closely monitor the company's progress in resolving these control deficiencies and filing the required reports.
The notices from NYSE and NYSE Arca highlight regulatory compliance issues for Empire State Realty Trust. The company now faces a critical timeline to file its Form 10-Q within six months to avoid potential delisting procedures. This situation exposes the company to increased regulatory scrutiny and potential legal risks. Shareholders might consider this a material event, possibly leading to shareholder litigation if not resolved promptly. The company's disclosure of working with its auditor to address the issues demonstrates transparency, but the outcome remains uncertain. Investors should be aware of the potential legal and financial consequences if the company fails to meet the extended filing deadlines.
The identification of control deficiencies in IT general controls by Ernst & Young raises serious concerns about Empire State Realty Trust's corporate governance practices. This situation underscores the importance of robust internal control systems and effective risk management in public companies. The delay in filing financial reports and the potential for delisting could lead to a loss of market credibility and might trigger a review of the company's board oversight and management effectiveness. To rebuild trust, the company should consider implementing stronger internal audit processes and enhancing its financial reporting systems. This event serves as a wake-up call for the company to strengthen its corporate governance framework and ensure timely and accurate financial reporting in the future.
On August 15, 2024, ESRT received a notice (the “NYSE Notice”) from the New York Stock Exchange (“NYSE”) indicating that, as a result of not having timely filed the Form 10-Q with the SEC, ESRT is not in compliance with Section 802.01E of the NYSE Listed Company Manual (the “NYSE Listing Standard”), which requires timely filing of all required periodic financial reports with the SEC. On August 16, 2024, ESROP received a notice (the “NYSE Arca Notice” and together with the NYSE Notice, the “Notices”) from the NYSE Arca, Inc. (“NYSE Arca” and together with “NYSE,” the “Exchanges”) indicating that, as a result of not having timely filed the Form 10-Q with the SEC, ESROP is not in compliance with Rule 5.3-E(i)(1) of the NYSE Arca Listed Company Manual (the “NYSE Arca Listing Standard” and together with the NYSE Listing Standard, the “Listing Standards”), which requires timely filing of all required periodic financial reports with the SEC.
Each Notice indicates that the applicable Issuer can regain compliance with the applicable Listing Standard by filing such Issuer’s Form 10-Q within six months of the Form 10-Q’s filing due date. If either Issuer fails to file the Form 10-Q by such date, such Issuer may submit a request for the applicable Exchange’s consideration that allows such Issuer’s securities to trade for an additional six-month trading period. If such Exchange determines that an additional six-month trading period is not appropriate, suspension and delisting procedures will commence pursuant to Section 804.00 of the NYSE Listed Company Manual or Rule 5.5-E(m) of the NYSE Arca Listed Company Manual, as applicable. If the applicable Exchange determines that an additional trading period of up to six months is appropriate and the applicable Issuer fails to regain compliance by the end of that period, suspension and delisting procedures for such Issuer will generally commence.
While the Issuers can provide no assurances as to timing, each Issuer is working diligently with EY to complete the assessment of the impacts of EY’s findings described above and plans to file the Form 10-Q as soon as practicably possible to regain compliance with the Listing Standard.
About Empire State Realty Trust
Empire State Realty Trust, Inc. (NYSE: ESRT) is a NYC-focused REIT that owns and operates a portfolio of modernized, amenitized, and well-located office, retail, and multifamily assets. ESRT’s flagship
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the federal securities laws, including without limitation statements regarding each Issuer’s filing of the Form 10-Q and each Issuer’s ability to regain compliance with the applicable Listing Standards. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and are including this statement for purposes of complying with those safe harbor provisions. You can identify these statements by use of words such as “aims,” “anticipates,” “approximately,” “believes,” “contemplates,” “continues,” “estimates,” “expects,” “forecasts,” “hope,” “intends,” “may,” “plans,” “seeks,” “should,” “thinks,” “will,” “would” or the negative of these words and phrases or similar words or expressions that do not relate to historical matters. You should exercise caution in interpreting and relying on forward-looking statements, because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the Issuers’ control and could materially affect actual results, performance or achievements. These factors include, without limitation, the risks and uncertainties detailed from time to time in the Issuers’ filings with the SEC and any failure of the conditions or events cited in this release. Except as may be required by law, the Issuers do not undertake a duty to update any forward-looking statement, whether as a result of new information, future events or otherwise.
Category: FINANCIAL
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Investors
(212) 850-2678
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Source: Empire State Realty Trust, Inc.
FAQ
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