Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended September 30, 2023


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-36106

EMPIRE STATE REALTY OP, L.P.

(Exact name of Registrant as specified in its charter)


Delaware						45-4685158
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

111 West 33rd Street, 12th Floor

New York, New York 10120

(Address of principal executive offices) (Zip Code)

(212) 687-8700

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of each exchange on which registered

Series ES operating partnership units	ESBA	NYSE Arca, Inc.
Series 60 operating partnership units	OGCP	NYSE Arca, Inc.
Series 250 operating partnership units	FISK	NYSE Arca, Inc.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of November 1, 2023, there were 20,152,827 units of the Registrant Series ES operating partnership units outstanding, 5,274,621 units of the Series 60 operating partnership units outstanding, and 2,640,947 units of the Series 250 operating partnership units outstanding.


	EMPIRE STATE REALTY OP, L.P.
	FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2023
	TABLE OF CONTENTS	PAGE
PART 1.	FINANCIAL INFORMATION

ITEM 1.	FINANCIAL STATEMENTS
	Condensed Consolidated Balance Sheets as of September 30, 2023 (unaudited) and December 31, 2022	2
	Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2023 and 2022 (unaudited)	3
	Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2023 and 2022 (unaudited)	4
	Condensed Consolidated Statements of Capital for the three and nine months ended September 30, 2023 and 2022 (unaudited)	5
	Condensed Consolidated Statements of Cash Flows for the three and nine months ended September 30, 2023 and 2022 (unaudited)	7
	Notes to Condensed Consolidated Financial Statements (unaudited)	9

ITEM 2.	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	28

ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK	39

ITEM 4.	CONTROLS AND PROCEDURES	39

PART II.	OTHER INFORMATION	39

ITEM 1.	LEGAL PROCEEDINGS	39

ITEM 1A.	RISK FACTORS	40

ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	40

ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	40

ITEM 4.	MINE SAFETY DISCLOSURES	40

ITEM 5.	OTHER INFORMATION	40

ITEM 6.	EXHIBITS	41

SIGNATURES		42

ITEM 1. FINANCIAL STATEMENTS

Empire State Realty OP, L.P.

Condensed Consolidated Balance Sheets

(amounts in thousands, except per unit amounts)


	September 30, 2023		December 31, 2022
ASSETS	(unaudited)
Commercial real estate properties, at cost:
Land	$	366,364	$	365,540
Development costs	8,178		8,166
Building and improvements	3,245,555		3,177,743
	3,620,097		3,551,449
Less: accumulated depreciation	(1,217,967)		(1,137,267)
Commercial real estate properties, net	2,402,130		2,414,182
Assets held for sale	—		35,538
Cash and cash equivalents	353,999		264,434
Restricted cash	66,954		50,244

Tenant and other receivables	37,651		24,102
Deferred rent receivables	254,233		240,188
Prepaid expenses and other assets	82,918		98,114
Deferred costs, net	175,488		187,570
Acquired below-market ground leases, net	323,199		329,073
Right of use assets	28,496		28,670
Goodwill	491,479		491,479
Total assets	$	4,216,547	$	4,163,594
LIABILITIES AND CAPITAL
Liabilities:
Mortgage notes payable, net	$	878,757	$	883,705
Senior unsecured notes, net	973,819		973,659
Unsecured term loan facilities, net	389,158		388,773
Unsecured revolving credit facility	—		—
Accounts payable and accrued expenses	83,299		80,729
Acquired below-market leases, net	14,703		17,849
Ground lease liabilities	28,496		28,670
Deferred revenue and other liabilities	75,688		76,091
Tenants’ security deposits	39,307		25,084
Liabilities related to assets held for sale	—		5,943
Total liabilities	2,483,227		2,480,503
Commitments and contingencies
Capital:
Private perpetual preferred units:
Private perpetual preferred units, $13.52 liquidation preference, 4,664 issued and outstanding in 2023 and 2022	21,936		21,936
Private perpetual preferred units, $16.62 liquidation preference, 1,560 issued and outstanding in 2023 and 2022	8,004		8,004
Series PR operating partnership units:
ESRT partner's capital (2,710 and 2,710 general partner operating partnership units and 159,624 and 158,420 limited partner operating partnership units outstanding in 2023 and 2022, respectively)	987,083		954,375
Limited partners' interests (80,403 and 80,475 limited partner operating partnership units outstanding in 2023 and 2022, respectively)	693,627		681,827
Series ES operating partnership units (20,243 and 21,081 limited partner operating partnership units outstanding in 2023 and 2022, respectively)	5,007		1,391
Series 60 operating partnership units (5,325 and 5,558 limited partner operating partnership units outstanding in 2023 and 2023, respectively)	1,022		16
Series 250 operating partnership units (2,645 and 2,789 limited partner operating partnership units outstanding in 2023 and 2022, respectively)	535		76
Total Empire State Realty OP, L.P.'s capital	1,717,214		1,667,625
Non-controlling interest in other partnerships	16,106		15,466
Total capital	1,733,320		1,683,091
Total liabilities and capital	$	4,216,547	$	4,163,594

The accompanying notes are an integral part of these consolidated financial statements

Empire State Realty OP, L.P.

Condensed Consolidated Statements of Operations

(unaudited)

(amounts in thousands, except per unit amounts)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Revenues:
Rental revenue	$	151,458	$	148,290	$	446,152	$	445,143

Observatory revenue	37,562		33,051		93,149		73,660
Lease termination fees	—		—		—		20,032
Third-party management and other fees	268		389		1,076		1,025
Other revenue and fees	2,238		1,982		6,313		5,908
Total revenues	191,526		183,712		546,690		545,768
Operating expenses:
Property operating expenses	42,817		42,798		124,380		118,875
Ground rent expenses	2,331		2,331		6,994		6,994
General and administrative expenses	16,012		15,725		47,795		45,287
Observatory expenses	9,471		8,516		25,983		22,507
Real estate taxes	32,014		31,831		95,292		91,637


Depreciation and amortization	46,624		46,984		140,312		172,394
Total operating expenses	149,269		148,185		440,756		457,694
Total operating income	42,257		35,527		105,934		88,074
Other income (expense):
Interest income	4,462		1,564		10,396		2,144
Interest expense	(25,382)		(25,516)		(76,091)		(75,572)

Gain on disposition of property	—		—		29,261		27,170
Income before income taxes	21,337		11,575		69,500		41,816
Income tax benefit (expense)	(1,409)		(1,457)		(923)		(224)
Net income	19,928		10,118		68,577		41,592
Private perpetual preferred unit distributions	(1,050)		(1,050)		(3,151)		(3,151)
Net (income) loss attributable to non-controlling interest in other partnerships	(111)		49		(69)		271
Net income attributable to common unitholders	$	18,767	$	9,117	$	65,357	$	38,712

Total weighted average units:
Basic	262,756		266,035		263,379		269,880
Diluted	266,073		267,121		265,269		270,966

Earnings per unit attributable to common unitholders:
Basic	$	0.07	$	0.03	$	0.25	$	0.14
Diluted	$	0.07	$	0.03	$	0.25	$	0.14

Dividends per unit	$	0.035	$	0.035	$	0.105	$	0.105

The accompanying notes are an integral part of these consolidated financial statements

Empire State Realty OP, L.P.

Condensed Consolidated Statements of Comprehensive Income

(unaudited)

(amounts in thousands)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Net income	$	19,928	$	10,118	$	68,577	$	41,592
Other comprehensive income:
Unrealized gain on valuation of interest rate swap agreements	9,525		19,588		16,058		39,407
Less: amount reclassified into interest expense	(2,275)		1,392		(5,429)		7,428
Other comprehensive income	7,250		20,980		10,629		46,835
Comprehensive income	27,178		31,098		79,206		88,427
Net (income) loss attributable to non-controlling interest in other partnerships	(111)		49		(69)		271
Other comprehensive income attributable to non-controlling interest in other partnerships	(480)		(670)		(384)		(2,297)
Comprehensive income attributable to OP unitholders	$	26,587	$	30,477	$	78,753	$	86,401

The accompanying notes are an integral part of these consolidated financial statements

Empire State Realty OP, L.P.

Condensed Consolidated Statements of Capital

For The Three Months Ended September 30, 2023 and 2022

(unaudited)

(amounts in thousands)



				Series PR Operating Partnership Units						Series ES Operating Partnership Units Limited Partners			Series 60 Operating Partnership Units Limited Partners			Series 250 Operating Partnership Units Limited Partners
				General Partner			Limited Partners
	Private Perpetual Preferred Units	Private Perpetual Preferred Unitholders		Operating Partnership Units	Operating Partnership Unitholders		Operating Partnership Units	Operating Partnership Unitholders		Operating Partnership Units	Operating Partnership Unitholders		Operating Partnership Units	Operating Partnership Unitholders		Operating Partnership Units	Operating Partnership Unitholders		Non-controlling Interest in Other Partnerships		Total Capital


















Balance at June 30, 2023	6,224	$	29,940	160,830	$	965,950	81,611	$	695,416	20,426	$	3,810	5,380	$	681	2,669	$	375	15,440		$	1,711,612

Conversion of operating partnership units to ESRT Partner's Capital	—	—		1,506	10,663		(1,244)	(10,616)		(183)	(36)		(55)	(8)		(24)	(3)		—		—
Contributions from consolidated joint ventures	—	—		—	—		—	—		—	—		—	—		—	—		75		75
Repurchases of common shares	—	—		—	—		—	—		—	—		—	—		—	—		—		—
Equity compensation	—	—		(2)	449		36	4,540		—	—		—	—		—	—		—		4,989
Distributions	—	(1,050)		—	(5,683)		—	(2,814)		—	(708)		—	(187)		—	(92)		—		(10,534)
Net income	—	1,050		—	11,560		—	5,208		—	1,417		—	394		—	188		111		19,928
Other comprehensive income	—	—		—	4,144		—	1,893		—	524		—	142		—	67		480		7,250
Balance at September 30, 2023	6,224	$	29,940	162,334	$	987,083	80,403	$	693,627	20,243	$	5,007	5,325	$	1,022	2,645	$	535	$	16,106	$	1,733,320



				Series PR Operating Partnership Units						Series ES Operating Partnership Units Limited Partners			Series 60 Operating Partnership Units Limited Partners			Series 250 Operating Partnership Units Limited Partners
				General Partner			Limited Partners
	Private Perpetual Preferred Units	Private Perpetual Preferred Unitholders		Operating Partnership Units	Operating Partnership Unitholders		Operating Partnership Units	Operating Partnership Unitholders		Operating Partnership Units	Operating Partnership Unitholders		Operating Partnership Units	Operating Partnership Unitholders		Operating Partnership Units	Operating Partnership Unitholders		Non-controlling Interest in Other Partnerships		Total Capital

















Balance at June 30, 2022	6,224	$	29,940	163,684	$	957,803	81,073	$	665,520	21,746	$	(1,137)	5,738	$	(637)	2,862	$	(277)	$	14,881	$	1,666,093

Conversion of operating partnership units to ESRT Partner's Capital	—	—		461	39		(39)	(4)		(324)	(27)		(60)	(5)		(38)	(3)		—		—
Repurchases of common shares	—	—		(2,567)	(18,105)		—	—		—	—		—	—		—	—		—		(18,105)
Equity compensation	—	—		(8)	317		—	5,057		—	—		—	—		—	—		—		5,374
Distributions	—	(1,050)		—	(5,694)		—	(2,837)		—	(751)		—	(199)		—	(100)		—		(10,631)
Net income	—	1,050		—	5,557		—	2,529		—	739		—	192		—	100		(49)		10,118
Other comprehensive income (loss)	—	—		—	12,462		—	5,553		—	1,646		—	426		—	223		670		20,980
Balance at September 30, 2022	6,224	$	29,940	161,570	$	952,379	81,034	$	675,818	21,422	$	470	5,678	$	(223)	2,824	$	(57)	$	15,502	$	1,673,829

Empire State Realty OP, L.P.

Condensed Consolidated Statements of Capital

For The Nine Months Ended September 30, 2023 and 2022

(unaudited)

(amounts in thousands)


				Series PR Operating Partnership Units						Series ES Operating Partnership Units Limited Partners			Series 60 Operating Partnership Units Limited Partners			Series 250 Operating Partnership Units Limited Partners
				General Partner			Limited Partners
	Private Perpetual Preferred Units	Private Perpetual Preferred Unitholders		Operating Partnership Units	Operating Partnership Unitholders		Operating Partnership Units	Operating Partnership Unitholders		Operating Partnership Units	Operating Partnership Unitholders		Operating Partnership Units	Operating Partnership Unitholders		Operating Partnership Units	Operating Partnership Unitholders		Non-controlling Interest in Other Partnerships		Total Capital
Balance at December 31, 2022	6,224	$	29,940	161,129	$	954,375	80,475	$	681,827	21,081	$	1,391	5,558	$	16	2,789	$	76	$	15,466	$	1,683,091

Conversion of operating partnership units to ESRT Partner's Capital	—	—		3,038	15,682		(1,823)	(15,523)		(838)	(131)		(233)	(12)		(144)	(16)		—		—
Contributions from consolidated joint ventures	—	—		—	—		—	—		—	—		—	—		—	—		187		187
Repurchases of common units	—	—		(2,151)	(13,105)		—	—		—	—		—	—		—	—		—		(13,105)
Equity compensation	—	—		318	918		1,751	13,814		—	—		—	—		—	—		—		14,732
Distributions	—	(3,151)		—	(16,980)		—	(7,660)		—	(2,150)		—	(569)		—	(281)		—		(30,791)
Net income	—	3,151		—	39,933		—	18,300		—	5,098		—	1,372		—	654		69		68,577
Other comprehensive income	—	—		—	6,260		—	2,869		—	799		—	215		—	102		384		10,629
Balance at September 30, 2023	6,224	$	29,940	162,334	$	987,083	80,403	$	693,627	20,243	$	5,007	5,325	$	1,022	2,645	$	535	$	16,106	$	1,733,320


				Series PR Operating Partnership Units						Series ES Operating Partnership Units Limited Partners			Series 60 Operating Partnership Units Limited Partners			Series 250 Operating Partnership Units Limited Partners
				General Partner			Limited Partners
	Private Perpetual Preferred Units	Private Perpetual Preferred Unitholders		Operating Partnership Units	Operating Partnership Unitholders		Operating Partnership Units	Operating Partnership Unitholders		Operating Partnership Units	Operating Partnership Unitholders		Operating Partnership Units	Operating Partnership Unitholders		Operating Partnership Units	Operating Partnership Unitholders		Non-controlling Interest in Other Partnerships		Total Capital
Balance at December 31, 2021	6,224	$	29,940	170,217	$	998,128	79,820	$	649,157	22,321	$	(4,058)	5,884	$	(1,395)	2,970	$	(692)	13,252		$	1,684,332

Conversion of operating partnership units to ESRT Partner's Capital	—	—		1,599	2,384		(348)	(2,503)		(899)	69		(206)	28		(146)	22		—		—
Contributions from consolidated joint ventures	—	—		—	—		—	—		—	—		—	—		—	—		224		224
Repurchases of common units	—	—		(10,433)	(82,545)		—	—		—	—		—	—		—	—		—		(82,545)
Equity compensation	—	—		187	574		1,562	15,025		—	—		—	—		—	—		—		15,599
Distributions	—	(3,151)		—	(17,444)		—	(8,421)		—	(2,285)		—	(604)		—	(303)		—		(32,208)
Net income (loss)	—	3,151		—	23,847		—	10,490		—	3,136		—	813		—	426		(271)		41,592
Other comprehensive income	—	—		—	27,435		—	12,070		—	3,608		—	935		—	490		2,297		46,835
Balance at September 30, 2022	6,224	$	29,940	161,570	$	952,379	81,034	$	675,818	21,422	$	470	5,678	$	(223)	2,824	$	(57)	$	15,502	$	1,673,829

The accompanying notes are an integral part of these consolidated financial statements

Empire State Realty OP, L.P.

Condensed Consolidated Statements of Cash Flows

(unaudited)

(amounts in thousands)


	Nine Months Ended September 30,
	2023		2022
Cash Flows From Operating Activities
Net income	$	68,577	$	41,592
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	140,312		172,394
Gain on disposition of property	(29,261)		(27,170)
Amortization of non-cash items within interest expense	6,804		7,514
Amortization of acquired above- and below-market leases, net	(1,932)		(4,136)
Amortization of acquired below-market ground leases	5,873		5,873
Straight-lining of rental revenue	(17,430)		(18,533)
Equity based compensation	14,732		15,599


Increase (decrease) in cash flows due to changes in operating assets and liabilities:
Security deposits	14,293		(1,198)
Tenant and other receivables	(13,459)		(11,707)
Deferred leasing costs	(11,838)		(31,983)
Prepaid expenses and other assets	23,569		23,630
Accounts payable and accrued expenses	(6,055)		2,511
Deferred revenue and other liabilities	1,863		(401)
Net cash provided by operating activities	196,048		173,985
Cash Flows From Investing Activities
Acquisition of real estate property	(26,910)		—
Net proceeds from disposition of property	88,910		—
Development costs	—		(31)
Additions to building and improvements	(101,379)		(89,085)
Net cash used in investing activities	(39,379)		(89,116)

The accompanying notes are an integral part of these consolidated financial statements

Empire State Realty OP, L.P.

Condensed Consolidated Statements of Cash Flows (continued)

(unaudited)

(amounts in thousands)


	Nine Months Ended September 30,
	2023		2022
Cash Flows From Financing Activities

Repayment of mortgage notes payable	(6,685)		(5,163)






Contributions from consolidated joint ventures	187		224
Repurchases of common units	(13,105)		(82,545)
Distributions	(30,791)		(32,208)
Net cash used in financing activities	(50,394)		(119,692)
Net increase (decrease) in cash and cash equivalents and restricted cash	106,275		(34,823)
Cash and cash equivalents and restricted cash—beginning of period	314,678		474,638
Cash and cash equivalents and restricted cash—end of period	$	420,953	$	439,815

Reconciliation of Cash and Cash Equivalents and Restricted Cash:
Cash and cash equivalents at beginning of period	$	264,434	$	423,695
Restricted cash at beginning of period	50,244		50,943
Cash and cash equivalents and restricted cash at beginning of period	$	314,678	$	474,638

Cash and cash equivalents at end of period	$	353,999	$	387,248
Restricted cash at end of period	66,954		52,567
Cash and cash equivalents and restricted cash at end of period	$	420,953	$	439,815

Supplemental disclosures of cash flow information:
Cash paid for interest	$	69,739	$	67,673
Cash paid for income taxes	$	578	$	188

Non-cash investing and financing activities:
Building and improvements included in accounts payable and accrued expenses	$	44,099	$	55,320
Write-off of fully depreciated assets	23,058		55,585
Derivative instruments at fair values included in prepaid expenses and other assets	25,578		18,457

Conversion of operating partnership units to ESRT partner's capital	15,682		2,384
Disposal of land in connection with foreclosure	—		1,680
Extinguishment of debt in connection with property disposition	—		30,000

The accompanying notes are an integral part of these consolidated financial statements

Empire State Realty OP, L.P.

Notes to Condensed Consolidated Financial Statements

(unaudited)

1. Description of Business and Organization

As used in these condensed consolidated financial statements, unless the context otherwise requires, “we,” “us,” “our,” and the “Company,” mean Empire State Realty OP, L.P. and its consolidated subsidiaries.

Empire State Realty OP, L.P. (the "Operating Partnership") is the entity through which Empire State Realty Trust, Inc. (“ESRT”), a New York City-focused real estate investment trust ("REIT"), conducts all of its business and owns (either directly or through subsidiaries) substantially all of its assets. We have four revenue drivers: a portfolio of modernized, amenitized and well-located office, retail, and multifamily assets. ESRT’s flagship Empire State Building – the “World’s Most Famous Building” – also includes its Observatory Experience, Tripadvisor’s #1 United States destination attraction in its 2023 Travelers’ Choice Best of the Best Awards for two consecutive years.

As of September 30, 2023, ESRT’s portfolio is comprised of approximately 8.6 million rentable square feet of office space, 0.7 million rentable square feet of retail space and 727 residential units. Our office portfolio included 11 properties (including three long-term ground leasehold interests) encompassing approximately 8.6 million rentable square feet. Nine of these office properties are located in midtown Manhattan and encompass approximately 7.6 million rentable square feet, including the Empire State Building. The remaining two office properties encompass approximately 1.1 million rentable square feet and are located in Stamford, Connecticut, with immediate access to mass transportation. Additionally, we have entitled land adjacent to one of the Stamford office properties, that can support the development of an approximately 0.4 million rentable square foot office building and garage. Our retail portfolio included approximately 0.7 million rentable square feet of retail space, predominantly located in Manhattan. Our multifamily portfolio included 727 residential units in New York City, 721 of which are located in Manhattan.

We were organized as a Delaware limited partnership on November 28, 2011, and commenced operations upon completion of the initial public offering of ESRT’s Class A common stock and related formation transactions on October 7, 2013 (the "IPO"). ESRT's Class A common stock, par value $0.01 per share, is listed on the New York Stock Exchange under the symbol "ESRT." ESRT, as the sole general partner in our Company, has responsibility and discretion in the management and control of our Company, and our limited partners, in such capacity, have no authority to transact business for, or participate in the management activities, of our Company. As of September 30, 2023, ESRT owned approximately 59.9% of our operating partnership units.

2. Summary of Significant Accounting Policies

There have been no material changes to the summary of significant accounting policies included in the "Summary of Significant Accounting Policies" section in our Annual Report on Form 10-K for the year ended December 31, 2022 (the “Annual Report”).

Basis of Quarterly Presentation and Principles of Consolidation

The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"), for interim financial information, and with the rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and footnote disclosures required by GAAP for complete financial statements have been condensed or omitted in accordance with such rules and regulations. In the opinion of management, all adjustments and eliminations (including intercompany balances and transactions), consisting of normal recurring adjustments, considered necessary for the fair presentation of the financial statements have been included.

The results of operations for the periods presented are not necessarily indicative of the results that may be expected for the corresponding full years. These financial statements should be read in conjunction with the financial statements and accompanying notes included in the financial statements for the year ended December 31, 2022 contained in our Annual Report. Our observatory business is subject to seasonality based on tourism trends and the weather. Pre-pandemic, approximately 16.0% to 18.0% of our annual observatory revenue was realized in the first quarter, 26.0% to 28.0% was realized in the second quarter, 31.0% to 33.0% was realized in the third quarter, and 23.0% to 25.0% was realized in the fourth quarter. Our multifamily business experiences some seasonality based on general market trends in New York City – the winter months (November through January) are slower in terms of leasing activity. We seek to mitigate this by staggering lease terms such that

lease expirations are matched with seasonal demand. We do not consider the balance of our business to be subject to material seasonal fluctuations.

We consolidate entities in which we have a controlling financial interest. In determining whether we have a controlling financial interest in a partially owned entity and the requirement to consolidate the accounts of that entity, we consider factors such as ownership interest, board representation, management representation, authority to make decisions, and contractual and substantive participating rights of the partners/members. For variable interest entities ("VIE"), we consolidate the entity if we are deemed to have a variable interest in the entity and through that interest we are deemed the primary beneficiary. The primary beneficiary of a VIE is the entity that has (i) the power to direct the activities that most significantly impact the entity's economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE. The primary beneficiary is required to consolidate the VIE. At December 31, 2022, we were the primary beneficiary of a variable interest in the intermediary entity which held title to 298 Mulberry, the multifamily asset acquired in December 2022. The intermediary entity was utilized to execute a like-kind exchange and subsequent to March 31, 2023, the like-kind exchange was completed and we took title to 298 Mulberry. Therefore, we had no VIEs at September 30, 2023.

We will assess the accounting treatment for each investment we may have in the future. This assessment will include a review of each entity’s organizational agreement to determine which party has what rights and whether those rights are protective or participating. For all VIEs, we will review such agreements in order to determine which party has the power to direct the activities that most significantly impact the entity’s economic performance and benefit. In situations where we or our partner could approve, among other things, the annual budget, or leases that cover more than a nominal amount of space relative to the total rentable space at each property, we would not consolidate the investment as we consider these to be substantive participation rights that result in shared power of the activities that would most significantly impact the performance and benefit of such joint venture investment.

A non-controlling interest in a consolidated subsidiary is defined as the portion of the equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. Non-controlling interests are required to be presented as a separate component of equity in the condensed consolidated balance sheets and in the condensed consolidated statements of operations by requiring earnings and other comprehensive income to be attributed to controlling and non-controlling interests.

Accounting Estimates

The preparation of the condensed consolidated financial statements in accordance with GAAP requires management to use estimates and assumptions that in certain circumstances affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Significant items subject to such estimates and assumptions include allocation of the purchase price of acquired real estate properties among tangible and intangible assets, determination of the useful life of real estate properties and other long-lived assets, valuation and impairment analysis of commercial real estate properties, right of use assets and other long-lived and indefinite-lived assets, estimate of tenant expense reimbursements, valuation of the allowance for doubtful accounts, and valuation of derivative instruments, ground lease liabilities, senior unsecured notes, mortgage notes payable, unsecured term loan and revolving credit facilities, and equity-based compensation. These estimates are prepared using management’s best judgment, after considering past, current, and expected events and economic conditions. Actual results could differ from those estimates.

3. Acquisitions and Dispositions

Property Acquisitions

On September 14, 2023, we closed on the acquisition of a retail property in Williamsburg, Brooklyn, located on the corner of North 6th Street and Wythe Avenue for a purchase price of $26.4 million. The property has three retail tenants and six residential units, and was fully leased as of September 30, 2023. The transaction was executed in accordance with a "1031 Exchange" under Section 1031 of the Internal Revenue Code of 1986, as amended. The purchase price is the fair value at the date of acquisition.

The following table summarizes properties acquired during the nine and twelve months ended September 30, 2023 and December 31, 2022, respectively (amounts in thousands):


						Intangibles
Property	Date Acquired	Land		Building and Improvements		Assets		Liabilities		Total*
Williamsburg Retail, Brooklyn	9/14/2023	$	4,851	$	20,936	$	1,573	$	(300)	$	27,060
298 Mulberry Street, Manhattan	12/20/2022	$	40,935	$	69,508	$	5,300	$	(150)	$	115,593

*Includes total capitalized transaction costs of $1.4 million.

Property Dispositions

The following table summarizes properties disposed of during the nine and twelve months ended September 30, 2023 and December 31, 2022, respectively (amounts in thousands):


Property	Date of Disposal	Sales Price		Gain on Disposition
500 Mamaroneck Avenue, Harrison, New York*	4/5/2023	$	53,000	$	13,572
69-97 and 103-107 Main Street, Westport, Connecticut	2/1/2023	$	40,000	$	15,689
10 Bank Street, White Plains, New York	12/7/2022	$	42,000	$	6,818
383 Main Avenue, Norwalk, Connecticut**	4/1/2022	$	30,000	$	27,170

*The gain is net of approximately $2.0 million of estimated post-closing obligations related to contaminated soil remediation costs and our commitment to reimburse the buyer for a delay in rent commencement from a tenant impacted by the soil remediation efforts. Should this rent commencement be delayed beyond our current estimate, our maximum exposure to reimburse the buyer for such a delay, as limited by amounts held in escrow, is an incremental post-closing obligation of $3.6 million.

**We transferred the property, which was encumbered by a $30.0 million mortgage, back to the lender in a consensual foreclosure and recognized a non-cash gain upon the disposition.

4. Deferred Costs, Acquired Lease Intangibles and Goodwill

Deferred costs, net, consisted of the following as of September 30, 2023 and December 31, 2022 (amounts in thousands):


	September 30, 2023		December 31, 2022
Leasing costs	$	222,272	$	218,707
Acquired in-place lease value and deferred leasing costs	158,518		160,683
Acquired above-market leases	24,430		27,833
	405,220		407,223
Less: accumulated amortization	(233,132)		(223,246)
Total deferred costs, net, excluding net deferred financing costs	$	172,088	$	183,977

At September 30, 2023 and December 31, 2022, $3.4 million and $5.0 million, respectively, of net deferred financing costs associated with the unsecured revolving credit facility was included in deferred costs, net on the condensed consolidated balance sheets.

Amortization expense related to deferred leasing costs and acquired deferred leasing costs was $5.8 million and $17.7 million for the three and nine months ended September 30, 2023, respectively, and $5.6 million and $19.8 million for the three and nine months ended September 30, 2022, respectively. Amortization expense related to acquired lease intangibles was $1.5 million and $6.1 million for the three and nine months ended September 30, 2023, respectively, and $2.2 million and $10.6 million for the three and nine months ended September 30, 2022, respectively.

Amortizing acquired intangible assets and liabilities consisted of the following as of September 30, 2023 and December 31, 2022 (amounts in thousands):


	September 30, 2023		December 31, 2022
Acquired below-market ground leases	$	396,916	$	396,916
Less: accumulated amortization	(73,717)		(67,843)
Acquired below-market ground leases, net	$	323,199	$	329,073


	September 30, 2023		December 31, 2022
Acquired below-market leases	$	(55,186)	$	(64,656)
Less: accumulated amortization	40,483		46,807
Acquired below-market leases, net	$	(14,703)	$	(17,849)

Rental revenue related to the amortization of below-market leases, net of above-market leases, was $0.6 million and $1.9 million for the three and nine months ended September 30, 2023, respectively, and $0.7 million and $4.1 million for the three and nine months ended September 30, 2022, respectively.

As of September 30, 2023 and December 31, 2022, we had goodwill of $491.5 million. Goodwill was allocated $227.5 million to the observatory reportable segment and $264.0 million to the real estate reportable segment.

From the quarter ended June 30, 2020 through our annual goodwill testing in October 2022, we bypassed the optional qualitative goodwill impairment assessment and proceeded directly to a quantitative assessment of the observatory reportable segment and engaged a third-party valuation consulting firm to perform the valuation process. This was done in response to the temporary closure of our observatory due to the COVID-19 pandemic and subsequent slow increase in visitors due to continued pandemic-related restrictions impacting tourism and international travel. The quantitative analysis used a combination of the discounted cash flow method (a form of the income approach) utilizing Level 3 unobservable inputs and the guideline company method (a form of the market approach). Significant assumptions under the former included revenue and cost projections, weighted average cost of capital, long-term growth rate and income tax considerations while the latter included guideline company enterprise values, revenue multiples and control premium rates. Our methodology to review goodwill impairment, which included a significant amount of judgment and estimates, provided a reasonable basis to determine whether impairment had occurred. Each quantitative analysis performed concluded the fair value of the reporting unit exceeds its carrying value. Subsequent to our last annual goodwill impairment test, we have performed quarterly qualitative assessments and have not identified any events which would indicate, on a more likely than not basis, that the goodwill allocated to the reporting unit was impaired. Many of the factors employed in determining whether or not goodwill is impaired are outside of our control, and it is reasonably likely that assumptions and estimates will change in future periods. We will continue to assess the impairment of the observatory reporting unit goodwill going forward.

5. Debt

Debt consisted of the following as of September 30, 2023 and December 31, 2022 (amounts in thousands):


	Principal Balance				As of September 30, 2023
	September 30, 2023		December 31, 2022		Stated Rate		Effective Rate(1)		Maturity Date(2)

Mortgage debt
Metro Center	$	80,710	$	82,596	3.59	%	3.67	%	11/5/2024
10 Union Square	50,000		50,000		3.70	%	3.97	%	4/1/2026
1542 Third Avenue	30,000		30,000		4.29	%	4.53	%	5/1/2027
First Stamford Place(3)	176,359		178,823		4.28	%	4.73	%	7/1/2027
1010 Third Avenue and 77 West 55th Street	35,179		35,831		4.01	%	4.21	%	1/5/2028
250 West 57th Street	180,000		180,000		2.83	%	3.21	%	12/1/2030


1333 Broadway	160,000		160,000		4.21	%	4.29	%	2/5/2033
345 East 94th Street - Series A	43,600		43,600		70.0% of SOFR plus 0.95%		3.56	%	11/1/2030
345 East 94th Street - Series B	7,378		7,865		SOFR plus 2.24%		3.56	%	11/1/2030



561 10th Avenue - Series A	114,500		114,500		70.0% of SOFR plus 1.07%		3.85	%	11/1/2033
561 10th Avenue - Series B	16,219		17,415		SOFR plus 2.45%		3.85	%	11/1/2033
Total mortgage debt	893,945		900,630

Senior unsecured notes:(4)
Series A	100,000		100,000		3.93	%	3.96	%	3/27/2025
Series B	125,000		125,000		4.09	%	4.12	%	3/27/2027
Series C	125,000		125,000		4.18	%	4.21	%	3/27/2030
Series D	115,000		115,000		4.08	%	4.11	%	1/22/2028
Series E	160,000		160,000		4.26	%	4.27	%	3/22/2030
Series F	175,000		175,000		4.44	%	4.45	%	3/22/2033
Series G	100,000		100,000		3.61	%	4.89	%	3/17/2032
Series H	75,000		75,000		3.73	%	5.00	%	3/17/2035
Unsecured term loan facility (4)	215,000		215,000		SOFR plus 1.20%		4.22	%	3/19/2025
Unsecured revolving credit facility (4)	—		—		SOFR plus 1.30%		—		3/31/2025
Unsecured term loan facility (4)	175,000		175,000		SOFR plus 1.50%		4.51	%	12/31/2026
Total principal	2,258,945		2,265,630
Deferred financing costs, net	(10,052)		(11,748)
Unamortized debt discount	(7,159)		(7,745)
Total	$	2,241,734	$	2,246,137

______________

(1)The effective rate is the yield as of September 30, 2023 and includes the stated interest rate, deferred financing cost amortization and interest associated with variable to fixed interest rate swap agreements.

(2)Pre-payment is generally allowed for each loan upon payment of a customary pre-payment penalty.

(3)Represents a $164 million mortgage loan bearing interest at 4.09% and a $12.4 million loan bearing interest at 6.25%.

(4)At September 30, 2023, we were in compliance with all debt covenants.

Principal Payments

Aggregate required principal payments at September 30, 2023 are as follows (amounts in thousands):


Year	Amortization		Maturities		Total
2023	$	1,947	$	—	$	1,947
2024	8,861		77,675		86,536
2025	6,893		315,000		321,893
2026	7,330		225,000		232,330
2027	6,461		319,000		325,461
Thereafter	22,079		1,268,699		1,290,778
Total	$	53,571	$	2,205,374	$	2,258,945

Deferred Financing Costs

Deferred financing costs, net, consisted of the following at September 30, 2023 and December 31, 2022 (amounts in thousands):


	September 30, 2023		December 31, 2022
Financing costs	$	43,473	$	43,473
Less: accumulated amortization	(30,020)		(26,753)
Total deferred financing costs, net	$	13,453	$	16,720

Amortization expense related to deferred financing costs was $1.1 million and $3.3 million for the three and nine months ended September 30, 2023, respectively, and $1.2 million and $3.8 million for the three and nine months ended September 30, 2022, respectively.

Unsecured Revolving Credit and Term Loan Facilities

On August 29, 2022, we entered into a third amendment to our amended and restated credit agreement dated August 29, 2017 with Bank of America, N.A., as administrative agent and the other lenders party thereto, which governs our senior unsecured revolving credit facility and term loan facility (collectively, the “BofA Credit Facility”). The BofA Credit Facility is in the initial maximum principal amount of up to $1.065 billion, which consists of an $850.0 million revolving credit facility that matures on March 31, 2025, and a $215.0 million term loan facility that matures on March 19, 2025. The third amendment revised the terms of the BofA Credit Facility to (i) replace LIBOR with SOFR given the phase-out of LIBOR and (ii) permit the addition of multifamily assets as Unencumbered Eligible Property (as defined therein) and add a capitalization rate for such assets. As of September 30, 2023, we had no borrowings under the revolving credit facility and $215.0 million under the term loan facility.

On August 29, 2022, we entered into a second amendment to our credit agreement dated March 19, 2020 with Wells Fargo Bank, National Association, as administrative agent, and the other lenders party thereto, which governs a senior unsecured term loan facility (the “Wells Term Loan Facility”). The Wells Term Loan Facility is in the original principal amount of $175.0 million and matures on December 31, 2026. The second amendment revised the terms of the Wells Term Loan Facility to (i) replace LIBOR with SOFR given the phase-out of LIBOR and (ii) permit the addition of multifamily assets as Unencumbered Eligible Property (as defined therein) and add a capitalization rate for such assets. We may request the Wells Term Loan Facility be increased through one or more increases or the addition of new pari passu term loan tranches, for a maximum aggregate principal amount not to exceed $225 million. As of September 30, 2023, our borrowings amounted to $175.0 million under the Wells Term Loan Facility.

The terms of both the BofA Credit Facility and the Wells Term Loan Facility include customary covenants, including limitations on liens, investment, distributions, debt, fundamental changes, and transactions with affiliates and require certain customary financial reports. Both facilities also require compliance with financial ratios including a maximum leverage ratio, a maximum secured leverage ratio, a minimum fixed charge coverage ratio, a minimum unencumbered interest coverage ratio, and a maximum unsecured leverage ratio. The agreements governing both facilities also contain customary events of default (subject in certain cases to specified cure periods), including but not limited to non-payment, breach of covenants, representations or warranties, cross defaults, bankruptcy or other insolvency events, judgments, ERISA events, invalidity of loan documents, loss of real estate investment trust qualification, and occurrence of a change of control. As of September 30, 2023, we were in compliance with these covenants.

Senior Unsecured Notes

The terms of the senior unsecured notes include customary covenants, including limitations on liens, investment, distributions, debt, fundamental changes, and transactions with affiliates and require certain customary financial reports. It also requires compliance with financial ratios including a maximum leverage ratio, a maximum secured leverage ratio, a minimum fixed charge coverage ratio, a minimum unencumbered interest coverage ratio, and a maximum unsecured leverage ratio. The agreements also contain customary events of default (subject in certain cases to specified cure periods), including but not limited to non-payment, breach of covenants, representations or warranties, cross defaults, bankruptcy or other insolvency events, judgments, ERISA events, the occurrence of certain change of control transactions and loss of real estate investment trust qualification. As of September 30, 2023, we were in compliance with these covenants.

6. Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consisted of the following as of September 30, 2023 and December 31, 2022 (amounts in thousands):


	September 30, 2023		December 31, 2022
Accrued capital expenditures	$	44,099	$	44,293
Accounts payable and accrued expenses	36,249		32,927


Accrued interest payable	2,951		3,509

Total accounts payable and accrued expenses	$	83,299	$	80,729

7. Financial Instruments and Fair Values

Derivative Financial Instruments

We use derivative financial instruments primarily to manage interest rate risk and such derivatives are not considered speculative. These derivative instruments are typically in the form of interest rate swap and forward agreements, and the primary objective is to minimize interest rate risks associated with investing and financing activities. The counterparties of these arrangements are major financial institutions with which we may also have other financial relationships. We are exposed to credit risk in the event of non-performance by these counterparties; however, we currently do not anticipate that any of the counterparties will fail to meet their obligations.

We have agreements with our derivative counterparties that contain a provision where if we either default or are capable of being declared in default on any of our indebtedness, then we could also be declared in default on our derivative obligations. As of September 30, 2023, we did not have derivatives in a net liability position.

As of September 30, 2023 and December 31, 2022, we had interest rate swaps and caps with an aggregate notional value of $573.6 million and $574.8 million, respectively. The notional value does not represent exposure to credit, interest rate or market risks. As of September 30, 2023 and December 31, 2022, the fair value of our derivative instruments in an asset position amounted to $25.6 million and $17.9 million, respectively, which is included in prepaid expenses and other assets on the condensed consolidated balance sheets. These interest rate swaps have been designated as cash flow hedges and hedge the variability in future cash flows associated with our existing variable-rate term loan facilities. Interest rate caps not designated as hedges are not speculative and are used to manage our exposure to interest rate movements, but do not meet the strict hedge accounting requirements.

As of September 30, 2023 and 2022, our cash flow hedges are deemed highly effective and a net unrealized gain of $7.3 million and $10.6 million for the three and nine months ended September 30, 2023, respectively, and a net unrealized gain of $21.0 million and $46.8 million for the three and nine months ended September 30, 2022, respectively, relating to both active and terminated hedges of interest rate risk, are reflected in the condensed consolidated statements of comprehensive income. Amounts reported in accumulated other comprehensive loss related to derivatives will be reclassified to interest expense as interest payments are made on the debt. We estimate that $8.8 million net gain of the current balance held in accumulated other comprehensive income (loss) will be reclassified into interest expense within the next 12 months.

The table below summarizes the terms of agreements and the fair values of our derivative financial instruments as of September 30, 2023 and December 31, 2022 (amounts in thousands):


							September 30, 2023				December 31, 2022
Derivative	Notional Amount		Receive Rate	Pay Rate	Effective Date	Expiration Date	Asset		Liability		Asset		Liability

Interest rate swap	$	36,820	70% of 1 Month SOFR	2.5000%	December 1, 2021	November 1, 2030	$	1,281	$	—	$	256	$	—
Interest rate swap	103,790		70% of 1 Month SOFR	2.5000%	December 1, 2021	November 1, 2033	4,279		—		365		—
Interest rate swap	10,710		70% of 1 Month SOFR	1.7570%	December 1, 2021	November 1, 2033	941		—		643		—
Interest rate swap	16,356		1 Month SOFR	2.2540%	December 1, 2021	November 1, 2030	1,261		—		1,070		—
Interest rate cap	6,780		70% of 1 Month SOFR	4.5000%	December 1, 2021	October 1, 2024	—		—		8		—
Interest rate cap	9,188		1 Month SOFR	5.5000%	December 1, 2021	October 1, 2024	22		—		26		—
Interest rate swap	175,000		SOFR Compound	2.5620%	August 31, 2022	December 31, 2026	10,216		—		8,040		—
Interest rate swap	107,500		SOFR Compound	2.6260%	August 19, 2022	March 19, 2025	3,799		—		3,766		—
Interest rate swap	107,500		SOFR OIS Compound	2.6280%	August 19, 2022	March 19, 2025	3,801		—		3,762		—
							$	25,600	$	—	$	17,936	$	—

The table below shows the effect of our derivative financial instruments designated as cash flow hedges on accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2023 and 2022 (amounts in thousands):


	Three Months Ended				Nine Months Ended
Effects of Cash Flow Hedges	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Amount of gain recognized in other comprehensive income (loss)	$	9,525	$	19,588	$	16,058	$	39,407
Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into interest expense	2,275		(1,392)		5,429		(7,428)

The table below shows the effect of our derivative financial instruments designated as cash flow hedges on the condensed consolidated statements of operations for the three and nine months ended September 30, 2023 and 2022 (amounts in thousands):


	Three Months Ended				Nine Months Ended
Effects of Cash Flow Hedges	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Total interest expense presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded	$	(25,382)	$	(25,516)	$	(76,091)	$	(75,572)
Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into interest expense	2,275		(1,392)		5,429		(7,428)

Fair Valuation

The estimated fair values at September 30, 2023 and December 31, 2022 were determined by management, using available market information and appropriate valuation methodologies. Considerable judgment is necessary to interpret market data and develop estimated fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts we could realize on disposition of the financial instruments. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

The fair value of derivative instruments is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. Although the majority of the inputs used to value

our derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by ourselves and our counterparties. The impact of such credit valuation adjustments, determined based on the fair value of each individual contract, was not significant to the overall valuation. As a result, all our derivatives were classified as Level 2 of the fair value hierarchy.

The fair values of our mortgage notes payable, senior unsecured notes (Series A, B, C, D, E, F, G and H), unsecured term loan facilities and unsecured revolving credit facility which are determined using Level 3 inputs are estimated by discounting the future cash flows using current interest rates at which similar borrowings could be made by us.

The following tables summarize the carrying and estimated fair values of our financial instruments as of September 30, 2023 and December 31, 2022 (amounts in thousands):


	September 30, 2023
			Estimated Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Interest rate swaps included in prepaid expenses and other assets	$	25,578	$	25,578	$	—	$	25,578	$	—

Mortgage notes payable	878,757		752,874		—		—		752,874

Senior unsecured notes - Series A, B, C, D, E, F, G and H	973,819		848,074		—		—		848,074
Unsecured term loan facilities	389,158		390,000		—		—		390,000


	December 31, 2022
			Estimated Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Interest rate swaps included in prepaid expenses and other assets	$	17,936	$	17,936	$	—	$	17,936	$	—

Mortgage notes payable	883,705		783,648		—		—		783,648

Senior unsecured notes - Series A, B, C, D, E, F, G and H	973,659		865,292		—		—		865,292
Unsecured term loan facilities	388,773		390,000		—		—		390,000

Disclosure about the fair value of financial instruments is based on pertinent information available to us as of September 30, 2023 and December 31, 2022. Although we are not aware of any factors that would significantly affect the reasonable fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since that date and current estimates of fair value may differ significantly from the amounts presented herein.

8. Leases

Lessor

We lease various spaces to tenants over terms ranging from one to 22 years. Certain leases have renewal options for additional terms. The leases provide for base monthly rentals and reimbursements for real estate taxes, escalations linked to the consumer price index or common area maintenance known as operating expense escalation. Operating expense reimbursements are reflected in our September 30, 2023 and 2022 condensed consolidated statements of operations as rental revenue.

Rental revenue includes fixed and variable payments. Fixed payments primarily relate to base rent and variable payments primarily relate to tenant expense reimbursements for certain property operating costs. The components of rental revenue for the three and nine months ended September 30, 2023 and 2022 are as follows (amounts in thousands):


	Three Months Ended				Nine Months Ended
Rental revenue	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Fixed payments	$	132,862	$	131,800	$	395,744	$	399,995
Variable payments	18,596		16,490		50,408		45,148
Total rental revenue	$	151,458	$	148,290	$	446,152	$	445,143

As of September 30, 2023, we were entitled to the following future contractual minimum lease payments (excluding operating expense reimbursements) on non-cancellable operating leases to be received which expire on various dates through 2040 (amounts in thousands):


Remainder of 2023	$	124,805
2024	510,232
2025	492,160
2026	446,677
2027	426,876
Thereafter	1,997,898
	$	3,998,648

The above future minimum lease payments exclude tenant recoveries and the net accretion of above and below-market lease intangibles. Some leases are subject to termination options generally upon payment of a termination fee. The preceding table is prepared assuming such options are not exercised.

Refer to our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2023 in the section "Financial Statements - Note 8. Leases" for prior disclosures related to the Signature Bank and First Republic Bank leases.

Lessee

We determine if an arrangement is a lease at inception. Our operating lease agreements relate to three ground lease assets and are reflected in right-of-use assets of $28.5 million and lease liabilities of $28.5 million in our condensed consolidated balance sheets as of September 30, 2023. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Variable lease payments are excluded from the right-of-use assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred.

The ground leases are due to expire between the years 2050 and 2077, inclusive of extension options, and have no variable payments or residual value guarantees. As our leases do not provide an implicit rate, we determined our incremental borrowing rate based on information available at the date of adoption of Accounting Standards Update No. 2016-02, Leases (Topic 842), in determining the present value of lease payments. The weighted average incremental borrowing rate used to calculate the right-of-use assets and lease liabilities as of September 30, 2023 was 4.5%. Rent expense for lease payments related to our operating leases is recognized on a straight-line basis over the non-cancellable term of the leases. The weighted average remaining lease term as of September 30, 2023 was 46.7 years.

As of September 30, 2023, the following table summarizes our future minimum lease payments discounted by our incremental borrowing rates to calculate the lease liabilities of our leases (amounts in thousands):


Remainder of 2023	$	380
2024	1,518
2025	1,518
2026	1,503
2027	1,482
Thereafter	62,277
Total undiscounted cash flows	68,678
Present value discount	(40,182)
Ground lease liabilities	$	28,496

9. Commitments and Contingencies

Legal Proceedings

Except as described below, as of September 30, 2023, we were not involved in any material litigation, nor, to our knowledge, was any material litigation threatened against us or our properties, other than routine litigation arising in the ordinary course of business such as disputes with tenants. We believe that the costs and related liabilities, if any, which may result from such actions will not materially affect our condensed consolidated financial position, operating results or liquidity.

As previously disclosed, in October 2014, 12 former investors (the "Claimants") in Empire State Building Associates L.L.C. (“ESBA”), which, prior to the IPO, owned the fee title to the Empire State Building, filed an arbitration claim with the American Arbitration Association against Peter L. Malkin, Anthony E. Malkin, Thomas N. Keltner, Jr., and our subsidiary ESRT MH Holdings LLC, the former supervisor of ESBA (the "Respondents"). The Statement of Claim (also filed later in federal court in New York for the expressed purpose of tolling the statute of limitations) alleged breach of fiduciary duty and related claims in connection with the IPO and formation transactions and sought monetary damages and declaratory relief. The Claimants had opted out of a prior class action bringing similar claims that were settled with court approval. The Respondents filed an answer and counterclaims. In March 2015, the federal court action was stayed on consent of all parties pending the arbitration. Arbitration hearings started in May 2016 and concluded in August 2018. On August 26, 2020, the arbitration panel issued an award that denied all Claimants’ claims with one exception, on which it awarded the Claimants approximately $1.2 million, inclusive of seven years of interest through October 2, 2020. This amount was recorded as an IPO litigation expense in the consolidated statements of operations for the year ended December 31, 2020. The Respondents believe that such award in favor of the Claimants is entirely without merit and, in an action filed in the United States District Court for the Southern District of New York, sought to vacate that portion of the award. On September 27, 2021, the court denied the Respondents' motion to vacate and entered judgement in the aforementioned amount, inclusive of accumulated interest. The Respondents appealed that ruling. On May 10, 2022, the Respondents moved to dismiss the appeal and judgment on the grounds that a recent decision of the United States Supreme Court held that the federal courts have no subject matter jurisdiction over the case. The Claimants opposed the motion. On April 20, 2023, the federal appeals court granted the motion and the federal court action challenging the award was dismissed. On April 21, 2023, the Respondents filed a petition to vacate in part and otherwise confirm in New York State court. On April 28, 2023, all but one of the Claimants filed a motion to confirm in that same court. On July 31, 2023, the New York State court denied the Respondents’ petition to vacate in part and confirmed the award. The Respondents believe that ruling is incorrect and have filed an appeal, which is pending. On August 4, 2023, one final Claimant who had not filed a petition to confirm in New York State court did so. On September 14, 2023, the Respondents filed an opposition to that petition, which is pending. In addition, certain of the Claimants in the federal court action sought to pursue claims in that case against the Respondents. The Respondents believe that any such claims are meritless. The magistrate judge assigned to the action has issued a Report and Recommendation rejecting the Claimants’ claims; the district judge will decide whether to adopt the Report and Recommendation.

Pursuant to indemnification agreements which were made with our directors, executive officers and chairman emeritus as part of our formation transactions, Anthony E. Malkin, Peter L. Malkin and Thomas N. Keltner, Jr., our former general counsel, have defense and indemnity rights from us with respect to this arbitration.

Unfunded Capital Expenditures

At September 30, 2023, we estimate that we will incur approximately $139.3 million of capital expenditures (including tenant improvements and leasing commissions) on our properties pursuant to existing lease agreements. We expect to fund these capital expenditures with operating cash flow, additional property level mortgage financings, our unsecured credit facility, cash on hand and other borrowings. Future property acquisitions may require substantial capital investments for refurbishment and leasing costs. We expect that these financing requirements will be met in a similar fashion.

Concentration of Credit Risk

Financial instruments that subject us to credit risk consist primarily of cash and cash equivalents, restricted cash, short-term investments, tenant and other receivables and deferred rent receivables. At September 30, 2023, we held on deposit at various major financial institutions cash and cash equivalents and restricted cash balances in excess of amounts insured by the FDIC.

Asset Retirement Obligations

We are required to accrue costs that we are legally obligated to incur on retirement of our properties which result from acquisition, construction, development and/or normal operation of such properties. Retirement includes sale, abandonment or disposal of a property. Under that standard, a conditional asset retirement obligation represents a legal obligation to perform an asset retirement activity in which the timing and/or method of settlement is conditional on a future event that may or may not be within a company’s control and a liability for a conditional asset retirement obligation must be recorded if the fair value of the obligation can be reasonably estimated. Environmental site assessments and investigations have identified asbestos or asbestos-containing building materials in certain of our properties. As of September 30, 2023, management has no plans to remove or alter these properties in a manner that would trigger federal and other applicable regulations for asbestos removal, and

accordingly, the obligations to remove the asbestos or asbestos-containing building materials from these properties have indeterminable settlement dates. As such, we are unable to reasonably estimate the fair value of the associated conditional asset retirement obligation. However, ongoing asbestos abatement, maintenance programs and other required documentation are carried out as required and related costs are expensed as incurred.

Other Environmental Matters

Certain of our properties have been inspected for soil contamination due to pollutants, which may have occurred prior to our ownership of these properties or subsequently in connection with its development and/or its use. Required remediation to such properties has been completed, other than our post-closing obligations for remediation at our previously owned Westport retail assets, as discussed in more detail in our Annual Report, and at our previously owned 500 Mamaroneck property as discussed in “Financial Statements - Note 3. Acquisitions and Dispositions.” As of September 30, 2023, with the exception of these three assets, management believes that there are no obligations related to environmental remediation other than maintaining the affected sites in conformity with the relevant authority’s mandates and filing the required documents. All such maintenance costs are expensed as incurred. We expect that resolution of the environmental matters relating to the above will not have a material impact on our business, assets, consolidated financial condition, results of operations or liquidity. However, we cannot be certain that we have identified all environmental liabilities at our properties, that all necessary remediation actions have been or will be undertaken at our properties or that we will be indemnified, in full or at all, in the event that such environmental liabilities arise.

Insurance Coverage

We carry insurance coverage on our properties of types and in amounts with deductibles that we believe are in line with coverage customarily obtained by owners of similar properties.

10. Capital

As of September 30, 2023, there were 161,346,829 shares of Class A common stock, 986,884 shares of Class B common stock and 108,617,764 operating partnership units outstanding. The controlling interest of 59.9% is owned by ESRT. The other 40.1% noncontrolling interest in the OP is diversified among various limited partners, some of whom include Company directors, senior management and employees. ESRT has two classes of common stock as a means to give its OP Unit holders voting rights in the public company that correspond to their economic interest in the combined entity. A one-time option was created at our formation transactions for any pre-IPO OP Unit holder to exchange one OP Unit out of every 50 OP Units they owned for one ESRT Class B share, and such ESRT Class B share carries 50 votes per share.

On May 16, 2019, our shareholders approved the Empire State Realty Trust, Inc. Empire State Realty OP, L.P. 2019 Equity Incentive Plan (the “2019 Plan”) and replaced the First Amended and Restated Empire State Realty Trust, Inc. and Empire State Realty OP, L.P. 2013 Equity Incentive Plan ("2013 Plan", and collectively with the 2019 Plan, the "Plans"). The 2019 Plan provides for grants to directors, employees and consultants of ESRT and the Operating Partnership, including options, restricted stock, restricted stock units, stock appreciation rights, performance awards, dividend equivalents and other equity-based awards. An aggregate of approximately 11.0 million shares of ESRT common stock are authorized for issuance under awards granted pursuant to the 2019 Plan. We will not issue any new equity awards under the 2013 Plan. The shares of ESRT Class A common stock underlying any awards under the Plans that are forfeited, canceled or otherwise terminated, other than by exercise, will be added back to the shares of ESRT Class A common stock available for issuance under the 2019 Plan. Shares tendered or held back upon exercise of a stock option or settlement of an award under the Plans to cover the exercise price or tax withholding and shares subject to a stock appreciation right that are not issued in connection with the stock settlement of the stock appreciation right upon exercise thereof, will not be added back to the shares of ESRT Class A common stock available for issuance under the 2019 Plan. In addition, shares of ESRT Class A common stock repurchased on the open market will not be added back to the shares of ESRT Class A common stock available for issuance under the 2019 Plan.

Long-term incentive plan ("LTIP") units are a special class of partnership interests. Each LTIP unit awarded will be deemed equivalent to an award of one share of ESRT stock under the Plans, reducing the availability for other equity awards on a one-for-one basis.

The vesting period for LTIP units, if any, will be determined at the time of issuance. Under the terms of the LTIP units, we will revalue for tax purposes its assets upon the occurrence of certain specified capital events, and any increase in valuation from the time of one such event to the next such event will be allocated first to the holders of LTIP units to equalize the capital accounts of such holders with the capital accounts of unitholders. Subject to any agreed upon exceptions, once vested and having achieved parity with unitholders, LTIP units are convertible into Series PR operating partnership units on a one-for-one basis.

LTIP units subject to time-based vesting, whether vested or not, receive per unit distributions as operating partnership units, which equal per share dividends (both regular and special) on our common stock. Market and performance-based LTIPs receive 10% of such distributions currently, unless and until such LTIP units are earned based on performance, at which time they will receive the accrued and unpaid 90% and will commence receiving 100% of such distributions thereafter.

Stock and Publicly Traded Operating Partnership Unit Repurchase Program

ESRT's Board of Directors authorized the repurchase of up to $500 million of ESRT Class A common stock and the Operating Partnership’s Series ES, Series 250 and Series 60 operating partnership units from January 1, 2022 through December 31, 2023. Under the program, ESRT may purchase ESRT Class A common stock and we may purchase our Series ES, Series 250 and Series 60 operating partnership units in accordance with applicable securities laws from time to time in the open market or in privately negotiated transactions. The timing, manner, price and amount of any repurchases will be determined by ESRT and us and will be subject to stock price, availability, trading volume, general market conditions, and applicable securities laws. The authorization does not obligate ESRT or us to acquire any particular amount of securities, and the program may be suspended or discontinued at ESRT and our discretion without prior notice.

There were no purchases of equity securities in the three months ended September 30, 2023.

Private Perpetual Preferred Units

As of September 30, 2023, there were 4,664,038 Series 2019 Preferred Units ("Series 2019 Preferred Units") and 1,560,360 Series 2014 Private Perpetual Preferred Units ("Series 2014 Preferred Units") outstanding. The Series 2019 Preferred Units have a liquidation preference of $13.52 per unit and are entitled to receive cumulative preferential annual cash distributions of $0.70 per unit payable in arrears on a quarterly basis. The Series 2014 Preferred Units which have a liquidation preference of $16.62 per unit and are entitled to receive cumulative preferential annual cash distributions of $0.60 per unit payable in arrears on a quarterly basis. Both series are not redeemable at the option of the holders and are redeemable at our option only in the case of specific defined events.

Distributions

Total distributions paid to OP unitholders were $9.5 million and $27.6 million for the three and nine months ended September 30, 2023, respectively, and $9.6 million and $29.1 million for the three and nine months ended September 30, 2022, respectively. Total distributions paid to preferred unitholders were $1.1 million and $3.2 million for the three and nine months ended September 30, 2023, respectively, and $1.1 million and $3.2 million for the three and nine months ended September 30, 2022, respectively.

Incentive and Share-Based Compensation

The Plans provide for grants to directors, employees and consultants consisting of stock options, restricted stock, dividend equivalents, stock payments, performance shares, LTIP units, stock appreciation rights and other incentive awards. An aggregate of 11.0 million shares of ESRT common stock is authorized for issuance under awards granted pursuant to the 2019 Plan, and as of September 30, 2023, 4.2 million shares of ESRT common stock remain available for future issuance.

During July 2023, we granted our two new directors, Christina Van Tassell and Hannah Yang, a total of 27,000 LTIP units which are subject to time-based vesting with a combined fair market value of $0.2 million. One-fourth of the units will vest on May 12, 2024, and the remainder shall vest in substantially equal installments on each subsequent anniversary for a period of three years thereafter.

Share-based compensation for time-based equity awards is measured at the fair value of the award on the date of grant and recognized as an expense on a straight-line basis over the shorter of (i) the stated vesting period, which is generally three, four or five years, or (ii) the period from the date of grant to the date the employee becomes retirement eligible, which may occur upon grant. An employee is retirement eligible when the employee attains the (i) age of 65 for awards granted in 2020 and after and age of 60 for awards granted before 2020 and (ii) the date on which the employee has first completed ten years of continuous service with us or our affiliates. Share-based compensation for market-based equity awards and performance-based equity awards is measured at the fair value of the award on the date of grant and recognized as an expense on a straight-line basis over three or four years. Additionally, for the performance-based equity awards, we assess, at each reporting period, whether it is probable that the performance conditions will be satisfied. We recognize expense respective to the number of awards we expect to vest at the conclusion of the measurement period. Changes in estimate are accounted for in the period of change through a cumulative catch-up adjustment.

For the market-based LTIP units, the fair value of the awards was estimated using a Monte Carlo Simulation model and discounted for the restriction period during which the LTIP units cannot be redeemed or transferred and the uncertainty regarding if, and when, the book capital account of the LTIP units will equal that of the common units. Our stock price, along with the prices of the comparative indexes, is assumed to follow the Geometric Brownian Motion Process. Geometric Brownian Motion is a common assumption when modeling in financial markets, as it allows the modeled quantity (in this case the stock price) to vary randomly from its current value and take any value greater than zero. The volatilities of the returns on our stock price and the comparative indexes were estimated based on implied volatilities and historical volatilities using an appropriate look-back period. The expected growth rate of the stock prices over the performance period is determined with consideration of the risk-free rate as of the grant date. For LTIP unit awards that are time or performance based, the fair value of the awards was estimated based on the fair value of our stock at the grant date discounted for the restriction period during which the LTIP units cannot be redeemed or transferred and the uncertainty regarding if, and when, the book capital account of the LTIP units will equal that of the common units. For restricted stock awards, the fair value of the awards is based on the market price of ESRT stock at the grant date.

LTIP units and ESRT restricted stock issued during the nine months ended September 30, 2023 were valued at $21.7 million. The weighted average per unit or share fair value was $5.67 for grants issued for the nine months ended September 30, 2023. The fair value per unit or share granted in 2023 was estimated on the respective dates of grant using the following assumptions: an expected life from 2.0 to 5.3 years, a dividend rate of 1.7%, a risk-free interest rate from 4.4% to 5.0%, and an expected price volatility from 35.0% to 46.0%. No other stock options, dividend equivalents, or stock appreciation rights were issued or outstanding as of September 30, 2023.

The following is a summary of ESRT restricted stock and LTIP unit activity for the nine months ended September 30, 2023:


	Restricted Stock	Time-based LTIPs	Market-based LTIPs	Performance-based LTIPs	Weighted Average Grant Fair Value
Unvested balance at December 31, 2022	359,293	2,713,522	4,070,537	510,989	$	6.69
Vested	(111,178)	(1,148,987)	(316,412)	(2,011)	7.66
Granted	370,465	1,733,015	946,398	771,180	5.67
Forfeited or unearned	(8,917)	—	(1,695,323)	(3,795)	4.30
Unvested balance at September 30, 2023	609,663	3,297,550	3,005,200	1,276,363	$	6.53

The time-based LTIPs and ESRT restricted stock awards are treated for accounting purposes as immediately vested upon the later of (i) the date the grantee attains the age of 60 or 65, as applicable, and (ii) the date on which grantee has first completed the requisite years of continuous service with our Company or its affiliates. For award agreements that qualify, we recognize noncash compensation expense on the grant date for the time-based awards and ratably over the vesting period for the market-based and performance-based awards, and accordingly, we recognized $0.5 million and $2.2 million for the three and nine months ended September 30, 2023, respectively, and $0.4 million and $2.0 million for the three and nine months ended September 30, 2022, respectively. Unrecognized compensation expense was $3.5 million at September 30, 2023, which will be recognized over a weighted average period of 2.5 years.

For the remainder of the LTIP unit and ESRT restricted stock awards, we recognize noncash compensation expense ratably over the vesting period, and accordingly, we recognized noncash compensation expense of $4.5 million and $12.6 million for the three and nine months ended September 30, 2023, respectively, and $4.8 million and $13.7 million for the three and nine months ended September 30, 2022, respectively. Unrecognized compensation expense was $28.1 million at September 30, 2023, which will be recognized over a weighted average period of 2.5 years.

Earnings Per Unit

Earnings per unit is calculated by dividing the net income attributable to common unitholders by the weighted average number of units outstanding during the respective period. Unvested share-based payment awards that contain non-forfeitable rights to dividends, whether paid or unpaid, are accounted for as participating securities. Share-based payment awards are included in the calculation of diluted income using the treasury stock method if dilutive.

For the three and nine months ended September 30, 2023 and 2022, earnings per unit is computed as follows (amounts in thousands, except per share amounts):


	Three Months Ended				Nine Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Numerator:
Net income	$	19,928	$	10,118	$	68,577	$	41,592
Private perpetual preferred unit distributions	(1,050)		(1,050)		(3,151)		(3,151)
Net (income) loss attributable to non-controlling interests in other partnerships	(111)		49		(69)		271
Earnings allocated to unvested units	—		—		—		—
Net income attributable to common unitholders – basic and diluted	$	18,767	$	9,117	$	65,357	$	38,712

Denominator:
Weighted average units outstanding – basic	262,756		266,035		263,379		269,880
Effect of dilutive securities:
Stock-based compensation plans	3,317		1,086		1,890		1,086

Weighted average units outstanding –- diluted	266,073		267,121		265,269		270,966

Earnings per unit:
Basic	$	0.07	$	0.03	$	0.25	$	0.14
Diluted	$	0.07	$	0.03	$	0.25	$	0.14

There were zero antidilutive shares and LTIP units for the three and nine months ended September 30, 2023, respectively, and zero antidilutive shares and LTIP units for the three and nine months ended September 30, 2022, respectively.

11. Related Party Transactions

Supervisory Fee Revenue

Since we became a public company, we have earned supervisory fees from entities affiliated with Anthony E. Malkin, our Chairman, President and Chief Executive Officer. These fees were $0.2 million and $0.7 million for the three and nine months ended September 30, 2023, respectively, and $0.2 million and $0.8 million for the three and nine months ended September 30, 2022, respectively. These fees are included within third-party management and other fees.

Property Management Fee Revenue

Since we became a public company, we have earned property management fees from entities affiliated with Anthony E. Malkin. These fees were $0.1 million and $0.2 million for the three and nine months ended September 30, 2023, respectively, and $0.1 million and $0.2 million for the three and nine months ended September 30, 2022, respectively. These fees are included within third-party management and other fees.

Other

We receive rent generally at the market rental rate for 5,447 square feet of leased space from an entity affiliated with Anthony E. Malkin at one of our properties. Under the lease, the tenant has the right to cancel such lease without special payment on 90 days’ notice. We also have a shared use agreement with such tenant, to occupy a portion of the leased premises as the office location for Peter L. Malkin, our chairman emeritus and employee, utilizing approximately 15% of the space, for which we pay to such tenant an allocable pro rata share of the cost. We also have agreements with these entities and excluded properties and businesses to provide them with general computer-related support services. Total aggregate revenue was $0.1 million and $0.3 million for the three and nine months ended September 30, 2023, respectively, and $0.1 million and $0.2 million for the three and nine months ended September 30, 2022, respectively.

As disclosed in greater detail in our Annual Report, in connection with the sale of our Westport retail assets in February 2023, we advanced a loan to the buyer to facilitate closing with a principal amount of $0.6 million, which bears interest at SOFR plus 3.5% and requires repayment of principal to the extent of available cash flow of the property. As of September 30, 2023, the loan has been fully paid.

12. Segment Reporting

We have identified two reportable segments: (1) real estate and (2) observatory. Our real estate segment includes all activities related to the ownership, management, operation, acquisition, redevelopment, repositioning and disposition of our traditional real estate assets. Our observatory segment includes the operation of the 86th and 102nd floor observatories at the Empire State Building. These two lines of businesses are managed separately because each business requires different support infrastructures, provides different services and has dissimilar economic characteristics such as investments needed, stream of revenues and marketing strategies. We account for intersegment sales and rents as if the sales or rents were to third parties, that is, at current market prices.

The following tables provide components of segment net income for each segment for the three and nine months ended September 30, 2023 and 2022 (amounts in thousands):



	Three Months Ended September 30, 2023
	Real Estate		Observatory		Intersegment Elimination		Total
Revenues:
Rental revenue	$	151,458	$	—	$	—	$	151,458
Intercompany rental revenue	22,113		—		(22,113)		—

Observatory revenue	—		37,562		—		37,562

Third-party management and other fees	268		—		—		268
Other revenue and fees	2,238		—		—		2,238
Total revenues	176,077		37,562		(22,113)		191,526
Operating expenses:
Property operating expenses	42,817		—		—		42,817
Intercompany rent expense	—		22,113		(22,113)		—
Ground rent expenses	2,331		—		—		2,331
General and administrative expenses	16,012		—		—		16,012
Observatory expenses	—		9,471		—		9,471
Real estate taxes	32,014		—		—		32,014


Depreciation and amortization	46,593		31		—		46,624
Total operating expenses	139,767		31,615		(22,113)		149,269
Total operating income	36,310		5,947		—		42,257
Other income (expense):
Interest income	4,410		52		—		4,462
Interest expense	(25,382)		—		—		(25,382)


Income before income taxes	15,338		5,999		—		21,337
Income tax expense	(146)		(1,263)		—		(1,409)
Net income	$	15,192	$	4,736	$	—	$	19,928
Segment assets	$	3,959,249	$	257,298	$	—	$	4,216,547
Expenditures for segment assets	$	56,227	$	—	$	—	$	56,227



	Three Months Ended September 30, 2022
	Real Estate		Observatory		Intersegment Elimination		Total
Revenues:
Rental revenue	$	148,290	$	—	$	—	$	148,290
Intercompany rental revenue	19,072		—		(19,072)		—

Observatory revenue	—		33,051		—		33,051

Third-party management and other fees	389		—		—		389
Other revenue and fees	1,982		—		—		1,982
Total revenues	169,733		33,051		(19,072)		183,712
Operating expenses:
Property operating expenses	42,798		—		—		42,798
Intercompany rent expense	—		19,072		(19,072)		—
Ground rent expenses	2,331		—		—		2,331
General and administrative expenses	15,725		—		—		15,725
Observatory expenses	—		8,516		—		8,516
Real estate taxes	31,831		—		—		31,831

Depreciation and amortization	46,933		51		—		46,984
Total operating expenses	139,618		27,639		(19,072)		148,185
Total operating income	30,115		5,412		—		35,527
Other income (expense):
Interest income	1,530		34		—		1,564
Interest expense	(25,516)		—		—		(25,516)


Income before income taxes	6,129		5,446		—		11,575
Income tax expense	(359)		(1,098)		—		(1,457)
Net income	$	5,770	$	4,348	$	—	$	10,118
Segment assets	$	3,950,883	$	250,257	$	—	$	4,201,140
Expenditures for segment assets	$	18,686	$	24	$	—	$	18,710


	Nine Months Ended September 30, 2023
	Real Estate		Observatory		Intersegment Elimination		Total
Revenues:
Rental revenue	$	446,152	$	—	$	—	$	446,152
Intercompany rental revenue	58,969		—		(58,969)		—

Observatory revenue	—		93,149		—		93,149

Third-party management and other fees	1,076		—		—		1,076
Other revenue and fees	6,313		—		—		6,313
Total revenues	512,510		93,149		(58,969)		546,690
Operating expenses:
Property operating expenses	124,380		—		—		124,380
Intercompany rent expense	—		58,969		(58,969)		—
Ground rent expenses	6,994		—		—		6,994
General and administrative expenses	47,795		—		—		47,795
Observatory expenses	—		25,983		—		25,983
Real estate taxes	95,292		—		—		95,292


Depreciation and amortization	140,194		118		—		140,312
Total operating expenses	414,655		85,070		(58,969)		440,756
Total operating income	97,855		8,079		—		105,934
Other income (expense):
Interest income	10,257		139		—		10,396
Interest expense	(76,091)		—		—		(76,091)

Gain on disposition of property	29,261		—		—		29,261
Income before income taxes	61,282		8,218		—		69,500
Income tax expense	(541)		(382)		—		(923)
Net income	$	60,741	$	7,836	$	—	$	68,577
Expenditures for segment assets	$	123,671	$	58	$	—	$	123,729


	Nine Months Ended September 30, 2022
	Real Estate		Observatory		Intersegment Elimination		Total
Revenues:
Rental revenue	$	445,143	$	—	$	—	$	445,143
Intercompany rental revenue	46,801		—		(46,801)		—

Observatory revenue	—		73,660		—		73,660
Lease termination fees	20,032		—		—		20,032
Third-party management and other fees	1,025		—		—		1,025
Other revenue and fees	5,908		—		—		5,908
Total revenues	518,909		73,660		(46,801)		545,768
Operating expenses:
Property operating expenses	118,875		—		—		118,875
Intercompany rent expense	—		46,801		(46,801)		—
Ground rent expenses	6,994		—		—		6,994
General and administrative expenses	45,287		—		—		45,287
Observatory expenses	—		22,507		—		22,507
Real estate taxes	91,637		—		—		91,637


Depreciation and amortization	172,258		136		—		172,394
Total operating expenses	435,051		69,444		(46,801)		457,694
Total operating income (loss)	83,858		4,216		—		88,074
Other income (expense):
Interest income	2,105		39		—		2,144
Interest expense	(75,572)		—		—		(75,572)

Gain on disposition of property	27,170		—		—		27,170
Income (loss) before income taxes	37,561		4,255		—		41,816
Income tax (expense) benefit	(541)		317		—		(224)
Net income	$	37,020	$	4,572	$	—	$	41,592
Expenditures for segment assets	$	70,795	$	315	$	—	$	71,110

13. Subsequent Events

None.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Unless the context otherwise requires or indicates, references in this section to “we,” “our,” and “us” refer to the Operating Partnership and our consolidated subsidiaries, or the Operating Partnership and ESRT, as the context requires. This Management’s Discussion and Analysis

provides a comparison of our performance for the three- and nine-month periods ended September 30, 2023 with the corresponding three- and nine-month periods ended September 30, 2022 and reviews our financial position as of September 30, 2023. The following discussion related to our consolidated financial statements should be read in conjunction with the financial statements and the notes thereto appearing elsewhere in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K.

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). 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 forward-looking statements by the use of forward-looking terminology 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 phrases with the intention of identifying statements about the future. In particular, statements pertaining to ESRT's capital resources, portfolio performance, dividend policy and results of operations contain forward-looking statements. Likewise, all of our statements regarding anticipated growth in our portfolio from operations, acquisitions and anticipated market conditions, demographics and results of operations are forward-looking statements.

Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and are generally beyond our control, and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods which may be incorrect or imprecise, and we may not be able to realize them. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all).

The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: (i) economic, market, political and social impact of, and uncertainty relating to, any catastrophic events, including pandemics, epidemics or other outbreaks of disease, natural disasters and extreme weather events, terrorism and other armed hostilities, as well as cybersecurity threats and technology disruptions; (ii) a failure of conditions or performance regarding any event or transaction described herein; (iii) resolution of legal proceedings involving us and/or ESRT; (iv) reduced demand for office, multifamily or retail space, including as a result of the changes in the use of office space and remote work; (v) changes in our business strategy; (vi) changes in technology and market competition that affect utilization of our office, retail, observatory, broadcast or other facilities; (vii) changes in domestic or international tourism, including due to health crises and pandemics, geopolitical events, including global hostilities, currency exchange rates, and/or competition from other observatories in New York City, any or all of which may cause a decline in Observatory visitors; (viii) defaults on, early terminations of, or non-renewal of, leases by tenants; (ix) increases in the Company's borrowing costs as a result of changes in interest rates and other factors; (x) declining real estate valuations and impairment charges; (xi) termination of our ground leases; (xii) changes in our ability to pay down, refinance, restructure or extend our indebtedness as it becomes due and potential limitations on our ability to borrow additional funds in compliance with drawdown conditions and financial covenants; (xiii) decreased rental rates or increased vacancy rates; (xiv) our failure to execute any newly planned capital project successfully or on the anticipated timeline or budget; (xv) difficulties in identifying and completing acquisitions; (xvi) risks related to any development project (including our Metro Tower potential development site); (xvii) impact of changes in governmental regulations, tax laws and rates and similar matters; (xviii) our failure to qualify as a REIT; (xix) environmental uncertainties and risks related to climate change, adverse weather conditions, rising sea levels and natural disasters; (xx) incurrence of taxable capital gain on disposition of an asset due to failure of use or compliance with a 1031 exchange program; and (xxi) accuracy of our methodologies and estimates regarding ESG metrics and goals, tenant willingness and ability to collaborate in reporting ESG metrics and meeting ESG goals, and impact of governmental regulation on our ESG efforts. For a further discussion of these and other factors that could impact the Operating Partnership’s future results, performance or transactions, see the section entitled “Risk Factors” in our Annual Report, and other risks described in documents subsequently filed by us from time to time with the Securities and Exchange Commission (the "SEC").

While forward-looking statements reflect the Company's good faith beliefs, they do not guarantee future performance. Any forward-looking statement speaks only as of the date on which it was made, and we assume no obligation to update or revise publicly any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events, or other changes after the date of this Quarterly Report on Form 10-Q, except as required by applicable law. Prospective investors should not place undue reliance on any forward-looking statements, which are based only on information currently available to the Company (or to third parties making the forward-looking statements).

Overview

Highlights for the three months ended September 30, 2023

•Net income attributable to common unitholders of $18.8 million.

•Core Funds From Operations ("Core FFO") of $65.9 million attributable to common unitholders.

•Signed a total of 248,479 rentable square feet of new, renewal, and expansion leases.

•Commercial portfolio 90.5% leased, Manhattan office portfolio 91.9% leased.

•Empire State Building Observatory generated $28.1 million of net operating income.

Results of Operations

The discussion below relates to our results of operations for the three and nine months ended September 30, 2023 and 2022, respectively.

Three Months Ended September 30, 2023 Compared to the Three Months Ended September 30, 2022

The following table summarizes our historical results of operations for the three months ended September 30, 2023 and 2022, respectively (amounts in thousands):


	Three Months Ended September 30,
	2023						2022						Change		%
Revenues:	Real Estate Segment		Observatory Segment		Total		Real Estate Segment		Observatory Segment		Total
Rental revenue	$	151,458	$	—	$	151,458	$	148,290	$	—	$	148,290	$	3,168	2.1	%

Observatory revenue	—		37,562		37,562		—		33,051		33,051		4,511		13.6
Lease termination fees	—		—		—		—		—		—		—		—
Third-party management and other fees	268		—		268		389		—		389		(121)		(31.1)
Other revenues and fees	2,238		—		2,238		1,982		—		1,982		256		12.9
Total revenues	153,964		37,562		191,526		150,661		33,051		183,712		7,814		4.3
Operating expenses:
Property operating expenses	42,817		—		42,817		42,798		—		42,798		(19)		—
Ground rent expenses	2,331		—		2,331		2,331		—		2,331		—		—
General and administrative expenses	16,012		—		16,012		15,725		—		15,725		(287)		(1.8)
Observatory expenses	—		9,471		9,471		—		8,516		8,516		(955)		(11.2)
Real estate taxes	32,014		—		32,014		31,831		—		31,831		(183)		(0.6)


Depreciation and amortization	46,593		31		46,624		46,933		51		46,984		360		0.8
Total operating expenses	139,767		9,502		149,269		139,618		8,567		148,185		(1,084)		(0.7)
Operating income	14,197		28,060		42,257		11,043		24,484		35,527		6,730		18.9
Intercompany rent revenue (expense)	22,113		(22,113)		—		19,072		(19,072)		—
Other income (expense):
Interest income	4,410		52		4,462		1,530		34		1,564		2,898		185.3
Interest expense	(25,382)		—		(25,382)		(25,516)		—		(25,516)		134		0.5


Income before income taxes	15,338		5,999		21,337		6,129		5,446		11,575		9,762		84.3
Income tax expense	(146)		(1,263)		(1,409)		(359)		(1,098)		(1,457)		48		3.3
Net income	15,192		4,736		19,928		5,770		4,348		10,118		9,810		97.0
Private perpetual preferred unit distributions	(1,050)		—		(1,050)		(1,050)		—		(1,050)		—		—
Net (income) loss attributable to non-controlling interests in other partnerships	(111)		—		(111)		49		—		49		160		326.5
Net income attributable to common unitholders	$	14,031	$	4,736	$	18,767	$	4,769	$	4,348	$	9,117	$	9,650	105.8	%

Real Estate Segment

Rental Revenue

The increase in rental revenue was primarily attributable to a $5.5 million increase in base rent from new or renewed tenants and higher rents and higher tenant escalations and a net $2.3 million decrease in revenue from our recent transaction activity as disclosed in "Financial Statements - Note 3. Acquisitions and Dispositions."

Interest Income

The increase in interest income in the three months ended September 30, 2023 reflects higher interest rates compared to the three months ended September 30, 2022.

Observatory Segment

Observatory Revenue

Observatory revenues were higher driven by increased visitation and revenue per visitor during the three months ended September 30, 2023 as compared to the three months ended September 30, 2022.

Observatory Expenses

The increase in observatory expenses was driven by increased operating hours, which increased variable costs such as marketing, labor and maintenance costs compared to the three months ended September 30, 2022.

Nine Months Ended September 30, 2023 Compared to the Nine Months Ended September 30, 2022

The following table summarizes our historical results of operations for the nine months ended September 30, 2023 and 2022 (amounts in thousands):


	Nine Months Ended September 30,
	2023						2022						Change		%
Revenues:	Real Estate Segment		Observatory Segment		Total		Real Estate Segment		Observatory Segment		Total
Rental revenue	$	446,152	$	—	$	446,152	$	445,143	$	—	$	445,143	$	1,009	0.2	%

Observatory revenue	—		93,149		93,149		—		73,660		73,660		19,489		26.5
Lease termination fees	—		—		—		20,032		—		20,032		(20,032)		(100.0)
Third-party management and other fees	1,076		—		1,076		1,025		—		1,025		51		5.0
Other revenues and fees	6,313		—		6,313		5,908		—		5,908		405		6.9
Total revenues	453,541		93,149		546,690		472,108		73,660		545,768		922		0.2
Operating expenses:
Property operating expenses	124,380		—		124,380		118,875		—		118,875		(5,505)		(4.6)
Ground rent expenses	6,994		—		6,994		6,994		—		6,994		—		—
General and administrative expenses	47,795		—		47,795		45,287		—		45,287		(2,508)		(5.5)
Observatory expenses	—		25,983		25,983		—		22,507		22,507		(3,476)		(15.4)
Real estate taxes	95,292		—		95,292		91,637		—		91,637		(3,655)		(4.0)


Depreciation and amortization	140,194		118		140,312		172,258		136		172,394		32,082		18.6
Total operating expenses	414,655		26,101		440,756		435,051		22,643		457,694		16,938		3.7
Operating income	38,886		67,048		105,934		37,057		51,017		88,074		17,860		20.3
Intercompany rent revenue (expense)	58,969		(58,969)		—		46,801		(46,801)		—
Other income (expense):
Interest income	10,257		139		10,396		2,105		39		2,144		8,252		384.9
Interest expense	(76,091)		—		(76,091)		(75,572)		—		(75,572)		(519)		(0.7)

Gain on disposition of property	29,261		—		29,261		27,170		—		27,170		2,091		7.7
Income before income taxes	61,282		8,218		69,500		37,561		4,255		41,816		27,684		66.2
Income tax (expense) benefit	(541)		(382)		(923)		(541)		317		(224)		(699)		(312.1)
Net income	60,741		7,836		68,577		37,020		4,572		41,592		26,985		64.9
Private perpetual preferred unit distributions	(3,151)		—		(3,151)		(3,151)		—		(3,151)		—		—
Net (income) loss attributable to non-controlling interests in other partnerships	(69)		—		(69)		271		—		271		340		125.5
Net income attributable to common unitholders	$	57,521	$	7,836	$	65,357	$	34,140	$	4,572	$	38,712	$	26,645	68.8	%

Real Estate Segment

Rental Revenue

The increase in rental revenue was primarily attributable to a $7.1 million increase in base rent from new or renewed tenants and higher rents and higher tenant escalations, and a net $6.1 million decrease in revenue from our recent transaction activity as disclosed in "Financial Statements - Note 3. Acquisitions and Dispositions."

Property Operating Expenses

The increase in property operating expenses is primarily due to higher repair and maintenance costs, higher cleaning costs, and higher payroll costs in 2023 relating to increased building utilization.

General and Administrative Expenses

The increase in general and administrative expenses primarily reflects higher payroll due to year-over-year wage growth.

Real Estate Taxes

The increase in real estate taxes was primarily attributable to a $4.1 million increase in real estate tax expense due to higher assessed values for multiple properties, partially offset by a net $0.4 million decrease from our recent transaction activity as disclosed in "Financial Statements - Note 3. Acquisitions and Dispositions."

Depreciation and Amortization

The decrease in depreciation and amortization reflects accelerated depreciation during the nine months ended September 30, 2022 relating to the transfer of 383 Main Avenue back to the lender in a consensual foreclosure and depreciation expense in the nine months ended September 30, 2022 on properties that were sold prior to September 30, 2023.

Interest Income

The increase reflects higher interest rates in the nine months ended September 30, 2023 compared to the nine months ended September 30, 2022.

Gain on Disposition of Property

The gain for the nine months ended September 30, 2023 reflects the gain on disposition of 500 Mamaroneck in Harrison, New York in April 2023 and 69-97 and 103-107 Main Street in Westport, Connecticut in February 2023 while the gain for the nine months ended September 30, 2022 represents a gain on the disposition of 383 Main Avenue in Norwalk, Connecticut in April 2022.

Observatory Segment

Observatory Revenue

Observatory revenues were higher driven by increased visitation and revenue per visitor during the nine months ended September 30, 2023 as compared to the nine months ended September 30, 2022.

Observatory Expenses

The increase in observatory expenses was driven by increased operating hours, which increased variable costs such as marketing, labor and maintenance costs.

Income Taxes

The increase in income tax expense was attributable to a $3.9 million increase in income before taxes for the observatory segment for the nine months ended September 30, 2023.

Liquidity and Capital Resources

Liquidity is a measure of our ability to meet potential cash requirements, including ongoing commitments to repay borrowings, fund and maintain our assets and operations, including lease-up costs, fund our redevelopment and repositioning programs, acquire properties, make distributions to our securityholders and fulfill other general business needs. Based on the historical experience of our management and our business strategy, in the foreseeable future we anticipate we will generate positive cash flows from operations. In order for ESRT to qualify as a REIT, ESRT is required under the Internal Revenue Code of 1986 to distribute to its stockholders, on an annual basis, at least 90% of its REIT taxable income, determined without regard to the deduction for dividends paid and excluding net capital gains. We expect to make quarterly distributions, as required, to our securityholders.

While we may be able to anticipate and plan for certain liquidity needs, there may be unexpected increases in uses of cash that are beyond our control and which would affect our financial condition and results of operations. For example, we may be required to comply with new laws or regulations that cause us to incur unanticipated capital expenditures for our properties, thereby increasing our liquidity needs. Even if there are no material changes to our anticipated liquidity requirements, our sources of liquidity may be fewer than, and the funds available from such sources may be less than, anticipated or needed. Our primary sources of liquidity will generally consist of cash on hand and cash generated from our operating activities, debt issuances and unused borrowing capacity under our unsecured revolving credit facility. We expect to meet our short-term liquidity requirements, including distributions, operating expenses, working capital, debt service, and capital expenditures from cash flows from operations, cash on hand, debt issuances, and available borrowing capacity under our unsecured revolving credit facility. The availability of these borrowings is subject to the conditions set forth in the applicable loan agreements. We expect to meet our long-term capital requirements, including acquisitions, redevelopments and capital expenditures through our cash flows from operations, cash on hand, our unsecured revolving credit facility, mortgage financings, debt issuances, common and/or preferred equity issuances and asset sales. Our properties require periodic investments of capital for individual lease related tenant improvement allowances, general capital improvements and costs associated with capital expenditures. Our overall leverage will depend on our mix of investments and the cost of leverage. ESRT's charter does not restrict the amount of leverage that we may use.

At September 30, 2023, we had $354.0 million available in cash and cash equivalents, and $850 million available under our unsecured revolving credit facility.

As of September 30, 2023, we had approximately $2.2 billion of total consolidated indebtedness outstanding, with a weighted average interest rate of 3.9% and a weighted average maturity of 5.7 years. As of September 30, 2023, excluding principal amortization, we have no outstanding debt maturing until November 2024.

Portfolio Transaction Activity

On February 1, 2023, we closed on the sale of 69-97 and 103-107 Main Street in Westport, Connecticut at a gross asset valuation of $40.0 million.

On April 5, 2023, we closed on the sale of 500 Mamaroneck Avenue in Harrison, New York at a gross asset valuation of $53.0 million.

On September 14, 2023, we closed on the acquisition of a Williamsburg retail property located on the corner of North 6th Street and Wythe Avenue in Brooklyn, New York, for a purchase price of $26.4 million.

Unsecured Revolving Credit and Term Loan Facilities

See "Financial Statements - Note 5. Debt" for a summary of our unsecured revolving credit and term loan facilities.

Mortgage Debt

As of September 30, 2023, our consolidated mortgage notes payable amounted to $893.9 million. We have no debt maturity until November 2024. See "Financial Statements - Note 5. Debt" for more information on mortgage debt.

Senior Unsecured Notes

The terms of the senior unsecured notes include customary covenants, including limitations on liens, investment, distributions, debt, fundamental changes, and transactions with affiliates and require certain customary financial reports. The terms also require compliance with financial ratios including a maximum leverage ratio, a maximum secured leverage ratio, a minimum fixed charge coverage ratio, a minimum unencumbered interest coverage ratio, and a maximum unsecured leverage ratio. The agreements also contain customary events of default (subject in certain cases to specified cure periods), including but not limited to non-payment, breach of covenants, representations or warranties, cross defaults, bankruptcy or other insolvency events, judgments, ERISA events, the occurrence of certain change of control transactions and loss of real estate investment trust qualification. As of September 30, 2023, we were in compliance with the covenants under the outstanding senior unsecured notes.

Financial Covenants

As of September 30, 2023, we were in compliance with the following financial covenants:


Financial covenant	Required	September 30, 2023		In Compliance
Maximum total leverage	< 60%	33.2	%	Yes
Maximum secured leverage	< 40%	13.0	%	Yes
Minimum fixed charge coverage	> 1.50x	3.0x		Yes
Minimum unencumbered interest coverage	> 1.75x	5.3x		Yes
Maximum unsecured leverage	< 60%	24.8	%	Yes

Leverage Policies

We expect to employ leverage in our capital structure in amounts determined from time to time by ESRT's Board of Directors. Although ESRT's Board of Directors has not adopted a policy that limits the total amount of indebtedness that we may incur, we anticipate that ESRT's Board of Directors will consider a number of factors in evaluating our level of indebtedness from time to time, as well as the amount of such indebtedness that will be either fixed or floating rate. ESRT's charter and bylaws do not limit the amount or percentage of indebtedness that we may incur nor do they restrict the form in which our indebtedness will be taken (including, but not limited to, recourse or non-recourse debt and cross-collateralized debt). Our overall leverage will depend on our mix of investments and the cost of leverage. ESRT's Board of Directors may from time to time modify our leverage policies in light of the then-current economic conditions, relative costs of debt and equity capital, market values of our properties, general market conditions for debt and equity securities, fluctuations in the market price of ESRT's common stock and our traded OP units, growth and acquisition opportunities and other factors.

Capital Expenditures

The following tables summarize our leasing commission costs, tenant improvement costs and our capital expenditures for each of the periods presented (dollars in thousands, except per square foot amounts).

Office Properties


	Nine Months Ended September 30,
Total New Leases, Expansions, and Renewals	2023		2022
Number of leases signed(1)	66		103
Total square feet	772,587		928,598
Leasing commission costs per square foot(2)	$	18.41	$	19.14
Tenant improvement costs per square foot(2)	78.15		59.20
Total leasing commissions and tenant improvement costs per square foot(2)	$	96.56	$	78.34

Retail Properties


	Nine Months Ended September 30,
Total New Leases, Expansions, and Renewals	2023		2022
Number of leases signed(1)	5		12
Total square feet	14,263		45,655
Leasing commission costs per square foot(2)	$	47.80	$	59.85
Tenant improvement costs per square foot(2)	48.17		53.97
Total leasing commissions and tenant improvement costs per square foot(2)	$	95.97	$	113.82

_______________

(1)Presents a renewed and expansion lease as one lease signed.

(2)Presents all tenant improvement and leasing commission costs as if they were incurred in the period in which the lease was signed, which may be different than the period in which they were actually paid.


	Nine Months Ended September 30,
	2023		2022
Total Portfolio
Capital expenditures (1)	$	38,736	$	28,823

_______________

(1)Excludes tenant improvements and leasing commission costs.

As of September 30, 2023, we expect to incur additional costs relating to obligations under existing lease agreements of approximately $139.3 million for tenant improvements and leasing commissions. We intend to fund the tenant improvements and leasing commission costs through a combination of operating cash flow, cash on hand, additional property level mortgage financings and borrowings under the unsecured revolving credit facility.

Capital expenditures are considered part of both our short-term and long-term liquidity requirements. We intend to fund capital improvements through a combination of operating cash flow, cash on hand and borrowings under the unsecured revolving credit facility.

Off-Balance Sheet Arrangements

As of September 30, 2023, we did not have any off-balance sheet arrangements.

Distribution Policy

We intend to distribute our net taxable income to our security holders in a manner intended to satisfy REIT distribution requirements and to avoid U.S. federal income tax liability.

Before we pay any distribution, whether for U.S. federal income tax purposes or otherwise, we must first meet both our operating requirements and obligations to make payments of principal and interest, if any. However, under some circumstances, we may be required to

use cash reserves, incur debt or liquidate assets at rates or times that we regard as unfavorable or make a taxable distribution of our shares in order to satisfy REIT distribution requirements.

Distribution to Equity Holders

Distributions and dividends amounting to $30.8 million and $32.2 million have been made to equity holders for the nine months ended September 30, 2023 and 2022, respectively.

Stock and Publicly Traded Operating Partnership Unit Repurchase Program

ESRT's Board of Directors authorized the repurchase of up to $500 million of ESRT Class A common stock and the Operating Partnership’s Series ES, Series 250 and Series 60 operating partnership units from January 1, 2022 through December 31, 2023. Under the program, ESRT may purchase ESRT Class A common stock and we may purchase our Series ES, Series 250 and Series 60 operating partnership units in accordance with applicable securities laws from time to time in the open market or in privately negotiated transactions. The timing, manner, price and amount of any repurchases will be determined by ESRT and us at our discretion and will be subject to stock price, availability, trading volume, general market conditions, and applicable securities laws. The authorization does not obligate ESRT or us to acquire any particular amount of securities, and the program may be suspended or discontinued at ESRT and our discretion without prior notice. There were no purchases of equity securities in the three months ended September 30, 2023. See "Financial Statements - Note 10. Capital."

Cash Flows

Comparison of Nine Months Ended September 30, 2023 to the Nine Months Ended September 30, 2022

Net cash. Cash and cash equivalents and restricted cash were $421.0 million and $439.8 million, respectively, as of September 30, 2023 and 2022. The decrease was primarily due to the acquisition of real estate property in December 2022 and September 2023 and increased spending for capital expenditures, partially offset by net proceeds from the disposition of properties in December 2022 and February and April 2023 and lower repurchases of common shares.

Operating activities. Net cash provided by operating activities increased by $22.0 million to $196.0 million due to increased observatory operating income and changes in working capital.

Investing activities. Net cash used in investing activities decreased by $49.7 million to $39.4 million primarily due to net proceeds from the disposition of 69-97 and 103-107 Main Street in Westport, Connecticut in February 2023, and 500 Mamaroneck in Harrison, New York in April 2023.

Financing activities. Net cash used in financing activities decreased by $69.3 million to $50.4 million primarily due to lower repurchases of common shares.

Net Operating Income ("NOI")

Our financial reports include a discussion of property net operating income, or NOI. NOI is a non-GAAP financial measure of performance. NOI is used by our management to evaluate and compare the performance of our properties and to determine trends in earnings and to compute the fair value of our properties as it is not affected by: (i) the cost of funds of the property owner, (ii) the impact of depreciation and amortization expenses as well as gains or losses from the sale of operating real estate assets that are included in net income computed in accordance with GAAP, (iii) acquisition expenses, loss on early extinguishment of debt and loss from derivative financial instruments, or (iv) general and administrative expenses and other gains and losses that are specific to the property owner. The cost of funds is eliminated from NOI because it is specific to the particular financing capabilities and constraints of the owner and because it is dependent on historical interest rates and other costs of capital as well as past decisions made by us regarding the appropriate mix of capital which may have changed or may change in the future. Depreciation and amortization expenses as well as gains or losses from the sale of operating real estate assets are eliminated because they may not accurately represent the actual change in value in our office or retail properties that result from use of the properties or changes in market conditions. While certain aspects of real property do decline in value over time in a manner that is reasonably captured by depreciation and amortization, the value of the properties as a whole have historically increased or decreased as a result of changes in overall economic conditions instead of from actual use of the property or the passage of time. Gains and losses from the sale of real property vary from property to property and are affected by market conditions at the time of sale which will usually change from period to period. These gains and losses can create distortions when comparing one period to another or when comparing our operating results to the operating results of other real estate companies that have not made similarly-timed purchases or sales. We believe that eliminating these costs from net income is useful to investors because the resulting measure captures the actual revenue, generated and actual expenses incurred in operating our properties as well as trends in occupancy rates, rental rates and operating costs.

However, the usefulness of NOI is limited because it excludes general and administrative costs, interest expense, depreciation and amortization expense and gains or losses from the sale of properties, and other gains and losses as stipulated by GAAP, the level of capital expenditures and leasing costs necessary to maintain the operating performance of our properties, all of which are significant economic costs. NOI may fail to capture significant trends in these components of net income which further limits its usefulness.

NOI is a measure of the operating performance of our properties but does not measure our performance as a whole. NOI is therefore not a substitute for net income as computed in accordance with GAAP. This measure should be analyzed in conjunction with net income computed in accordance with GAAP and discussions elsewhere in this Management’s Discussion and Analysis of Financial Condition and Results of Operations regarding the components of net income that are eliminated in the calculation of NOI. Other companies may use different methods for calculating NOI or similarly titled measures and, accordingly, our NOI may not be comparable to similarly titled measures reported by other companies that do not define the measure exactly as we do.

The following table presents a reconciliation of our net income, the most directly comparable GAAP measure, to NOI for the periods presented (amounts in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(unaudited)				(unaudited)
Net income	$	19,928	$	10,118	$	68,577	$	41,592
Add:
General and administrative expenses	16,012		15,725		47,795		45,287
Depreciation and amortization	46,624		46,984		140,312		172,394
Interest expense	25,382		25,516		76,091		75,572


Income tax expense (benefit)	1,409		1,457		923		224


Less:
Gain on disposition of property	—		—		(29,261)		(27,170)
Third-party management and other fees	(268)		(389)		(1,076)		(1,025)
Interest income	(4,462)		(1,564)		(10,396)		(2,144)
Net operating income	$	104,625	$	97,847	$	292,965	$	304,730
Other Net Operating Income Data
Straight-line rental revenue	$	5,015	$	7,341	$	17,430	$	18,533
Net increase in rental revenue from the amortization of above-and below-market lease assets and liabilities	$	554	$	677	$	1,932	$	4,136
Amortization of acquired below-market ground leases	$	1,957	$	1,957	$	5,873	$	5,873

Funds from Operations ("FFO")

We present below a discussion of FFO. We compute FFO in accordance with the “White Paper” on FFO published by the National Association of Real Estate Investment Trusts, or NAREIT, which defines FFO as net income (loss) (determined in accordance with GAAP), excluding impairment write-off of investments in depreciable real estate and investments in in-substance real estate investments, gains or losses from debt restructurings and sales of depreciable operating properties, plus real estate-related depreciation and amortization (excluding amortization of deferred financing costs), less distributions to non-controlling interests and gains/losses from discontinued operations and after adjustments for unconsolidated partnerships and joint ventures. FFO is a widely recognized non-GAAP financial measure for REITs that we believe, when considered with financial statements determined in accordance with GAAP, is useful to investors in understanding financial performance and providing a relevant basis for comparison among REITs. In addition, we believe FFO is useful to investors as it captures features particular to real estate performance by recognizing that real estate has generally appreciated over time or maintains residual value to a much greater extent than do other depreciable assets. Investors should review FFO, along with GAAP net income, when trying to understand an equity REIT’s operating performance. We present FFO because we consider it an important supplemental measure of our operating performance and believe that it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs. However, because FFO excludes depreciation and amortization and captures neither the changes in the value of our properties that result from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effect and could materially impact our results of operations, the utility of FFO as a measure of performance is limited. There can be no assurance that FFO presented by us is comparable to similarly titled measures of other REITs. FFO does not represent cash generated from operating activities and should not be considered as an alternative to net income

(loss) determined in accordance with GAAP or to cash flow from operating activities determined in accordance with GAAP. FFO is not indicative of cash available to fund ongoing cash needs, including the ability to make cash distributions. Although FFO is a measure used for comparability in assessing the performance of REITs, as the NAREIT White Paper only provides guidelines for computing FFO, the computation of FFO may vary from one company to another.

Modified Funds From Operations ("Modified FFO")

Modified FFO adds back an adjustment for any above or below-market ground lease amortization to traditionally defined FFO. We believe this a useful supplemental measure in evaluating our operating performance due to the non-cash accounting treatment under GAAP, which stems from the third quarter 2014 acquisition of two option properties following our formation transactions as they carry significantly below market ground leases, the amortization of which is material to our overall results. We present Modified FFO because we believe it is an important supplemental measure of our operating performance in that it adds back the non-cash amortization of below-market ground leases. There can be no assurance that Modified FFO presented by us is comparable to similarly titled measures of other REITs. Modified FFO does not represent cash generated from operating activities and should not be considered as an alternative to net income (loss) determined in accordance with GAAP or to cash flow from operating activities determined in accordance with GAAP. Modified FFO is not indicative of cash available to fund ongoing cash needs, including the ability to make cash distributions.

Core Funds From Operations

Core FFO adds back to Modified FFO the following items: IPO litigation expense, severance expenses and loss on early extinguishment of debt. The Company believes Core FFO is an important supplemental measure of its operating performance because it excludes items associated with its IPO and formation transactions and other non-recurring items. There can be no assurance that Core FFO presented by the Company is comparable to similarly titled measures of other REITs. Core FFO does not represent cash generated from operating activities and should not be considered as an alternative to net income (loss) determined in accordance with GAAP or to cash flow from operating activities determined in accordance with GAAP. Core FFO is not indicative of cash available to fund ongoing cash needs, including the ability to make cash distributions. In future periods, we may also exclude other items from Core FFO that we believe may help investors compare our results.

The following table presents a reconciliation of our net income, the most directly comparable GAAP measure, to FFO, Modified FFO and Core FFO for the periods presented (amounts in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(unaudited)				(unaudited)
Net income	$	19,928	$	10,118	$	68,577	$	41,592
Noncontrolling interests in other partnerships	(111)		49		(69)		271
Private perpetual preferred unit distributions	(1,050)		(1,050)		(3,151)		(3,151)
Real estate depreciation and amortization	45,174		45,461		136,085		167,446
Gain on disposition of property	—		—		(29,261)		(27,170)
FFO attributable to common unitholders	63,941		54,578		172,181		178,988
Amortization of below-market ground leases	1,957		1,957		5,873		5,873
Modified FFO attributable to common unitholders	65,898		56,535		178,054		184,861





Core FFO attributable to common unitholders	$	65,898	$	56,535	$	178,054	$	184,861

Weighted average Operating Partnership units
Basic	262,756		266,035		263,379		269,880
Diluted	266,073		267,121		265,269		270,966

Factors That May Influence Future Results of Operations

Leasing

Due to the relatively small number of leases that are signed in any particular quarter, one or more larger leases may have a disproportionately positive or negative impact on average rent, tenant improvement and leasing commission costs for that period. As a result, we believe it is more appropriate when analyzing trends in average rent and tenant improvement and leasing commission costs to review

activity over multiple quarters or years. Tenant improvement costs include expenditures for general improvements occurring concurrently with, but that are not directly related to, the cost of installing a new tenant. Leasing commission costs are similarly subject to significant fluctuations depending upon the length of leases being signed and the mix of tenants from quarter to quarter.

As of September 30, 2023, there were approximately 0.9 million rentable square feet of space in our portfolio available to lease (excluding leases signed but not yet commenced) representing 9.5% of the net rentable square footage of the properties in our portfolio. In addition, leases representing 2.9% and 5.3% of net rentable square footage of the properties in our portfolio will expire in 2023 and in 2024, respectively. These leases are expected to represent approximately 2.9% and 5.3%, respectively, of our annualized rent for such periods. Our revenues and results of operations can be impacted by expiring leases that are not renewed or re-leased or that are renewed or re-leased at base rental rates equal to, above or below the current average base rental rates. Further, our revenues and results of operations can also be affected by downtime after space is vacated and the costs we incur to re-lease available space, including payment of leasing commissions, redevelopments and build-to-suit remodeling that may not be borne by the tenant.

Observatory Operations

For the three months ended September 30, 2023, the observatory hosted 743,000 visitors, compared to 687,000 visitors for the three months ended September 30, 2022. Our return of attendance to pre-pandemic levels is closely tied to domestic and international travel trends, our new reservations-only model of operation, and our desire to provide a better experience with fewer crowds to visitors from whom we receive higher revenues per person.

Observatory revenue for the three months ended September 30, 2023 was $37.6 million, compared to $33.1 million for the three months ended September 30, 2022. The observatory revenue increase was driven by higher visitation levels in 2023.

Observatory revenues and admissions are dependent upon the following: (i) the number of tourists (domestic and international) who come to New York City and visit the observatory, as well as any related tourism trends; (ii) the prices per admission that can be charged; (iii) seasonal trends affecting the number of visitors to the observatory; (iv) competition, in particular from other new and existing observatories; and (v) weather trends.

Outlook

Year to date in 2023, ESRT has seen sustained demand for our properties, marked by solid leasing activity and observatory performance.

We believe the global economy, including the real estate sector, currently navigates an environment of uncertainty around inflation, rising interest rates, reduced commercial real estate new loans, questions on the direction of capital markets, risk of recession and geopolitical unrest. In particular, there have been concerns about the softening of the commercial real estate market, and particularly the office real estate market, amidst refinancing challenges of existing low interest rate loans and associated reduced new loan availability and increased costs of loans and related increased expectations of equity returns, coupled with the gradual pace of return-to-office and its impact on the physical utilization of space and asset valuations. Additionally, the risk of a global economic recession could impact the number of visitors to the Empire State Building Observatory, as well as our pricing power.

Despite this global economic backdrop, we believe that ESRT is in a good competitive position with diversified drivers of income across office, retail, multifamily and the Empire State Building Observatory. ESRT’s New York City-focused portfolio is modernized, amenitized, well-located and energy efficient, with indoor environmental quality, competitive rental rates and strong leased percentages. We believe our business is further fortified by the continued performance of our Observatory, which was ranked the #1 attraction in the U.S. by Tripadvisor’s 2023 Travelers’ Choice Best of the Best Awards for a second consecutive year.

In addition to our diversified portfolio, our business is supported by a well-positioned balance sheet, modest leverage and access to liquidity as set forth herein. The absence of near term debt maturities or floating rate debt exposure provides an added degree of security in a rising rate environment. We have been able to execute on capital recycling, acquisitions, and buybacks. As we navigate these uncertain times, we remain prepared for various challenges and situations.

Critical Accounting Estimates

Refer to our Annual Report for a discussion of our critical accounting estimates. There were no material changes to our critical accounting estimates disclosed in our Annual Report.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Our future income, cash flows and fair values relevant to financial instruments are dependent upon prevalent market interest rates. We are exposed to interest rate changes primarily on our unsecured revolving credit facility and debt refinancings. In order to mitigate our interest rate risk, we may borrow at fixed rates or may enter into derivative financial instruments such as interest rate swaps or caps on floating rate financial instruments. We are not subject to foreign currency risk and we do not enter into derivative or interest rate transactions for speculative purposes.

As of September 30, 2023, we have interest rate SOFR swap and cap agreements with an aggregate notional value of $573.6 million and which mature between October 1, 2024 and November 1, 2033. The "variable to fixed" interest rate swaps have been designated as cash flow hedges and are deemed highly effective with fair values in an asset position of $25.6 million and are included in prepaid expenses and other assets on the condensed consolidated balance sheets as of September 30, 2023.

As of September 30, 2023, the weighted average interest rate on the $2.2 billion of fixed-rate indebtedness outstanding was 3.9% per annum, with maturities at various dates through March 17, 2035.

As of September 30, 2023, the fair value of our outstanding debt was approximately $2.0 billion, which was approximately $250.8 million less than the book value as of such date. Interest risk amounts were determined by considering the impact of hypothetical interest rates on our financial instruments. These analyses do not consider the effect of any change in overall economic activity that could occur in that environment. Further, in the event of a change of that magnitude, we may take actions to further mitigate our exposure to the change. However, due to the uncertainty of the specific actions that would be taken and their possible effects, these analyses assume no changes in our financial structure.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as such term is defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) that are designed to ensure that information required to be disclosed in our reports under the Exchange Act is processed, recorded, summarized and reported within the time periods specified in the SEC’s rules and regulations and that such information is accumulated and communicated to management, including ESRT's Chief Executive Officer and its Executive Vice President, Chief Operating Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

As of September 30, 2023, the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of ESRT management, including ESRT's Chief Executive Officer and its Executive Vice President, Chief Operating Officer and Chief Financial Officer, regarding the effectiveness of our disclosure controls and procedures at the end of the period covered by this report. Based on the foregoing, ESRT's Chief Executive Officer and its Executive Vice President, Chief Operating Officer and Chief Financial Officer concluded, as of that time, that our disclosure controls and procedures were effective in ensuring that information required to be disclosed by us in reports filed or submitted under the Exchange Act (i) is processed, recorded, summarized and reported within the time periods specified in the SEC’s rules and forms and (ii) is accumulated and communicated to our management, including ESRT's Chief Executive Officer and its Executive Vice President, Chief Operating Officer and Chief Financial Officer, as appropriate to allow for timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

No changes to our internal control over financial reporting were identified in connection with the evaluation referenced above that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

See “Financial Statements – Note 9. Commitments and Contingencies” for a description of legal proceedings.

ITEM 1A. RISK FACTORS

As of September 30, 2023, there have been no material changes to the risk factors. See the section entitled "Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2022 and any additional factors that may be contained in any filing we make with the SEC.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Recent Sales of Unregistered Securities

None.

Recent Purchases of Equity Securities

Stock and Publicly Traded Operating Partnership Unit Repurchase Program

ESRT's Board of Directors authorized the repurchase of up to $500 million of our Class A common stock and the Operating Partnership’s Series ES, Series 250 and Series 60 operating partnership units during the period from January 1, 2022 through December 31, 2023. Under the program, ESRT may purchase our Class A common stock and we may purchase our Series ES, Series 250 and Series 60 operating partnership units in accordance with applicable securities laws from time to time in the open market or in privately negotiated transactions. The timing, manner, price and amount of any repurchases will be determined by ESRT and us and will be subject to stock price, availability, trading volume, general market conditions, and applicable securities laws. The authorization does not obligate ESRT or us to acquire any particular amount of securities, and the program may be suspended or discontinued at ESRT and our discretion without prior notice. As of September 30, 2023, we had approximately $396.7 million remaining of the authorized repurchase amount.

There were no repurchases of equity securities in the three-month period ended September 30, 2023 under the repurchase program described above.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not Applicable.

ITEM 5. OTHER INFORMATION

(a) None.

(b) None.

(c) During the three months ended September 30, 2023, none of our directors or officers (as defined in Rule 16a-1(f) of the Exchange Act) adopted, terminated or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of Regulation S-K).

ITEM 6. EXHIBITS


Exhibit No.			Description
31.1*			Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*			Certification of Principal Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*			Certification of Chief Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*			Certification of Principal Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS*			XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH*			XBRL Taxonomy Extension Schema Document
101.CAL*			XBRL Taxonomy Extension Calculation Document
101.DEF*			XBRL Taxonomy Extension Definitions Document
101.LAB*			XBRL Taxonomy Extension Labels Document
101.PRE*			XBRL Taxonomy Extension Presentation Document
104			Cover Page Interactive Data File (contained in Exhibit 101)
Notes:
* Filed herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

EMPIRE STATE REALTY OP, L.P.

By: Empire State Realty Trust, Inc., its general partner


Date:	November 8, 2023	By:/s/ Christina Chiu
		Executive Vice President, Chief
		Operating Officer and Chief
		Financial Officer
		(Principal Financial Officer)

Date:	November 8, 2023	By: /s/ Stephen V. Horn
		Senior Vice President,
		Chief Accounting Officer
		(Principal Accounting Officer)

EXHIBIT 31.1

Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Anthony E. Malkin, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Empire State Realty OP, L.P.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Dated: November 8, 2023			By: /s/ Anthony E. Malkin Anthony E. Malkin Chairman, President and Chief Executive Officer

EXHIBIT 31.2

Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Christina Chiu, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Empire State Realty OP, L.P.;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures, and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Dated: November 8, 2023			By: /s/ Christina Chiu Christina Chiu Executive Vice President, Chief Operating Officer and Chief Financial Officer


AMR-444272-v1			2			80-40476364

EXHIBIT 32.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to 18 U.S.C. Section 1350, adopted pursuant to Section 906 of The Sarbanes-Oxley Act of 2002, the undersigned Chief Executive Officer of Empire State Realty OP, L.P. (the "Company"), hereby certifies, to his knowledge that the Quarterly Report on Form 10-Q for the period ended September 30, 2023 (the "Report"), as filed with the Securities and Exchange Commission on the date hereof, fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


Date: November 8, 2023			By: /s/ Anthony E. Malkin Anthony E. Malkin Chairman, President and Chief Executive Officer

EXHIBIT 32.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to 18 U.S.C. Section 1350, adopted pursuant to Section 906 of The Sarbanes-Oxley Act of 2002, the undersigned, Executive Vice President and Chief Financial Officer of Empire State Realty OP, L.P. (the "Company"), hereby certifies, to her knowledge that the Quarterly Report on Form 10-Q for the period ended September 30, 2023 (the "Report"), as filed with the Securities and Exchange Commission on the date hereof, fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


Date: November 8, 2023			By: /s/ Christina Chiu Christina Chiu Executive Vice President, Chief Operating Officer and Chief Financial Officer

Cover - shares	9 Months Ended
Cover - shares	Sep. 30, 2023	Nov. 01, 2023
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	001-36106
Entity Registrant Name	EMPIRE STATE REALTY OP, L.P.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	45-4685158
Entity Address, Address Line One	111 West 33rd Street
Entity Address, Address Line Two	12th Floor
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10120
City Area Code	212
Local Phone Number	-8700
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001553079
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Series ES Operating Partnership Units Limited Partners
Document Information [Line Items]
Title of 12(b) Security	Series ES operating partnership units
Trading Symbol	ESBA
Security Exchange Name	NYSEArca
Entity Common Stock, Shares Outstanding		20,152,827
Series 60 Operating Partnership Units Limited Partners
Document Information [Line Items]
Title of 12(b) Security	Series 60 operating partnership units
Trading Symbol	OGCP
Security Exchange Name	NYSEArca
Entity Common Stock, Shares Outstanding		5,274,621
Series 250 operating partnership units
Document Information [Line Items]
Title of 12(b) Security	Series 250 operating partnership units
Trading Symbol	FISK
Security Exchange Name	NYSEArca
Entity Common Stock, Shares Outstanding		2,640,947

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Commercial real estate properties, at cost:
Land	$ 366,364	$ 365,540
Development costs	8,178	8,166
Building and improvements	3,245,555	3,177,743
Commercial real estate properties, at cost	3,620,097	3,551,449
Less: accumulated depreciation	(1,217,967)	(1,137,267)
Commercial real estate properties, net	2,402,130	2,414,182
Assets held for sale	0	35,538
Cash and cash equivalents	353,999	264,434
Restricted cash	66,954	50,244
Tenant and other receivables	37,651	24,102
Deferred rent receivables	254,233	240,188
Prepaid expenses and other assets	82,918	98,114
Deferred costs, net	175,488	187,570
Acquired below-market ground leases, net	323,199	329,073
Right of use assets	28,496	28,670
Goodwill	491,479	491,479
Total assets	4,216,547	4,163,594
Liabilities:
Mortgage notes payable, net	878,757	883,705
Senior unsecured notes, net	973,819	973,659
Unsecured term loan facilities, net	389,158	388,773
Unsecured revolving credit facility	0	0
Accounts payable and accrued expenses	83,299	80,729
Acquired below-market leases, net	14,703	17,849
Ground lease liabilities	28,496	28,670
Deferred revenue and other liabilities	75,688	76,091
Tenants’ security deposits	39,307	25,084
Liabilities related to assets held for sale	0	5,943
Total liabilities	2,483,227	2,480,503
Commitments and contingencies
Capital:
Total Empire State Realty OP, L.P.'s capital	1,717,214	1,667,625
Non-controlling interest in other partnerships	16,106	15,466
Total capital	1,733,320	1,683,091
Total liabilities and capital	4,216,547	4,163,594
Private perpetual preferred units, series 2019
Capital:
Private perpetual preferred units	21,936	21,936
Private perpetual preferred units, series 2014
Capital:
Private perpetual preferred units	8,004	8,004
Series PR Operating Partnership Units
Capital:
ESRT partner's capital (2,710 and 2,710 general partner operating partnership units and 159,624 and 158,420 limited partner operating partnership units outstanding in 2023 and 2022, respectively)	987,083	954,375
Limited partner operating partnership units	693,627	681,827
Series ES Operating Partnership Units Limited Partners
Capital:
Limited partner operating partnership units	5,007	1,391
Series 60 Operating Partnership Units Limited Partners
Capital:
Limited partner operating partnership units	1,022	16
Series 250 Operating Partnership Units Limited Partners
Capital:
Limited partner operating partnership units	$ 535	$ 76

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2023	Dec. 31, 2022
Private perpetual preferred units, series 2019
Capital:
Private perpetual preferred units, liquidation preference (in USD per share)	$ 13.52	$ 13.52
Private perpetual preferred units, issued (in shares)	4,664,038	4,664,000
Private perpetual preferred units, outstanding (in shares)	4,664,000	4,664,000
Private perpetual preferred units, series 2014
Capital:
Private perpetual preferred units, liquidation preference (in USD per share)	$ 16.62	$ 16.62
Private perpetual preferred units, issued (in shares)	1,560,000	1,560,000
Private perpetual preferred units, outstanding (in shares)	1,560,000	1,560,000
Series PR Operating Partnership Units
Capital:
Limited partner operating partnership units, outstanding (in shares)	80,403,000	80,475,000
Series ES Operating Partnership Units Limited Partners
Capital:
Limited partner operating partnership units, outstanding (in shares)	20,243,000	21,081,000
Series 60 Operating Partnership Units Limited Partners
Capital:
Limited partner operating partnership units, outstanding (in shares)	5,325,000	5,558,000
Series 250 Operating Partnership Units Limited Partners
Capital:
Limited partner operating partnership units, outstanding (in shares)	2,645,000	2,789,000
ESRT \| Series PR Operating Partnership Units
Capital:
General partner operating partnership units, outstanding (in shares)	2,710,000	2,710,000
Limited partner operating partnership units, outstanding (in shares)	159,624,000	158,420,000

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenues:
Rental revenue	$ 151,458	$ 148,290	$ 446,152	$ 445,143
Observatory revenue	37,562	33,051	93,149	73,660
Lease termination fees	0	0	0	20,032
Third-party management and other fees	268	389	1,076	1,025
Other revenue and fees	2,238	1,982	6,313	5,908
Total revenues	191,526	183,712	546,690	545,768
Operating expenses:
Property operating expenses	42,817	42,798	124,380	118,875
Ground rent expenses	2,331	2,331	6,994	6,994
General and administrative expenses	16,012	15,725	47,795	45,287
Observatory expenses	9,471	8,516	25,983	22,507
Real estate taxes	32,014	31,831	95,292	91,637
Depreciation and amortization	46,624	46,984	140,312	172,394
Total operating expenses	149,269	148,185	440,756	457,694
Total operating income (loss)	42,257	35,527	105,934	88,074
Other income (expense):
Interest income	4,462	1,564	10,396	2,144
Interest expense	(25,382)	(25,516)	(76,091)	(75,572)
Gain on disposition of property	0	0	29,261	27,170
Income (loss) before income taxes	21,337	11,575	69,500	41,816
Income tax benefit (expense)	(1,409)	(1,457)	(923)	(224)
Net income	19,928	10,118	68,577	41,592
Private perpetual preferred unit distributions	(1,050)	(1,050)	(3,151)	(3,151)
Net (income) loss attributable to non-controlling interest in other partnerships	(111)	49	(69)	271
Net income attributable to common unitholders	$ 18,767	$ 9,117	$ 65,357	$ 38,712
Total weighted average units:
Basic (in shares)	262,756	266,035	263,379	269,880
Diluted (in shares)	266,073	267,121	265,269	270,966
Earnings per unit attributable to common unitholders:
Basic (in USD per share)	$ 0.07	$ 0.03	$ 0.25	$ 0.14
Diluted (in USD per share)	0.07	0.03	0.25	0.14
Dividends per unit ((in USD per share)	$ 0.035	$ 0.035	$ 0.105	$ 0.105

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 19,928	$ 10,118	$ 68,577	$ 41,592
Other comprehensive income:
Unrealized gain on valuation of interest rate swap agreements	9,525	19,588	16,058	39,407
Less: amount reclassified into interest expense	(2,275)	1,392	(5,429)	7,428
Other comprehensive income	7,250	20,980	10,629	46,835
Comprehensive income	27,178	31,098	79,206	88,427
Net (income) loss attributable to non-controlling interest in other partnerships	(111)	49	(69)	271
Other comprehensive income attributable to non-controlling interest in other partnerships	(480)	(670)	(384)	(2,297)
Comprehensive income attributable to OP unitholders	$ 26,587	$ 30,477	$ 78,753	$ 86,401

Condensed Consolidated Statements of Capital - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Increase (Decrease) in Partners' Capital [Roll Forward]
Beginning balance	$ 1,711,612	$ 1,666,093	$ 1,683,091	$ 1,684,332
Conversion of operating partnership units to ESRT Partner's Capital	0	0	0	0
Contributions from consolidated joint ventures	$ 75		187	224
Repurchases of common units (in shares)	0
Repurchases of common units	$ 0	(18,105)	(13,105)	(82,545)
Equity compensation	4,989	5,374	14,732	15,599
Distributions	(10,534)	(10,631)	(30,791)	(32,208)
Net income (loss)	19,928	10,118	68,577	41,592
Other comprehensive income (loss)	7,250	20,980	10,629	46,835
Ending balance	$ 1,733,320	$ 1,673,829	$ 1,733,320	$ 1,673,829
General Partner \| Series PR Operating Partnership Units
Increase (Decrease) in Partners' Capital [Roll Forward]
Beginning balance (in shares)	160,830,000	163,684,000	161,129,000	170,217,000
Beginning balance	$ 965,950	$ 957,803	$ 954,375	$ 998,128
Conversion of operating partnership units to ESRT Partner's Capital (in shares)	1,506,000	461,000	3,038,000	1,599,000
Conversion of operating partnership units to ESRT Partner's Capital	$ 10,663	$ 39	$ 15,682	$ 2,384
Repurchases of common units (in shares)		(2,567,000)	(2,151,000)	(10,433,000)
Repurchases of common units		$ (18,105)	$ (13,105)	$ (82,545)
Equity compensation (in shares)	(2,000)	(8,000)	318,000	187,000
Equity compensation	$ 449	$ 317	$ 918	$ 574
Distributions	(5,683)	(5,694)	(16,980)	(17,444)
Net income (loss)	11,560	5,557	39,933	23,847
Other comprehensive income (loss)	$ 4,144	$ 12,462	$ 6,260	$ 27,435
Ending balance (in shares)	162,334,000	161,570,000	162,334,000	161,570,000
Ending balance	$ 987,083	$ 952,379	$ 987,083	$ 952,379
Limited Partners \| Series PR Operating Partnership Units
Increase (Decrease) in Partners' Capital [Roll Forward]
Beginning balance (in shares)	81,611,000	81,073,000	80,475,000	79,820,000
Beginning balance	$ 695,416	$ 665,520	$ 681,827	$ 649,157
Conversion of operating partnership units to ESRT Partner's Capital (in shares)	(1,244,000)	(39,000)	(1,823,000)	(348,000)
Conversion of operating partnership units to ESRT Partner's Capital	$ (10,616)	$ (4)	$ (15,523)	$ (2,503)
Equity compensation (in shares)	36,000		1,751,000	1,562,000
Equity compensation	$ 4,540	5,057	$ 13,814	$ 15,025
Distributions	(2,814)	(2,837)	(7,660)	(8,421)
Net income (loss)	5,208	2,529	18,300	10,490
Other comprehensive income (loss)	$ 1,893	$ 5,553	$ 2,869	$ 12,070
Ending balance (in shares)	80,403,000	81,034,000	80,403,000	81,034,000
Ending balance	$ 693,627	$ 675,818	$ 693,627	$ 675,818
Limited Partners \| Series ES Operating Partnership Units Limited Partners
Increase (Decrease) in Partners' Capital [Roll Forward]
Beginning balance (in shares)	20,426,000	21,746,000	21,081,000	22,321,000
Beginning balance	$ 3,810	$ (1,137)	$ 1,391	$ (4,058)
Conversion of operating partnership units to ESRT Partner's Capital (in shares)	(183,000)	(324,000)	(838,000)	(899,000)
Conversion of operating partnership units to ESRT Partner's Capital	$ (36)	$ (27)	$ (131)	$ 69
Distributions	(708)	(751)	(2,150)	(2,285)
Net income (loss)	1,417	739	5,098	3,136
Other comprehensive income (loss)	$ 524	$ 1,646	$ 799	$ 3,608
Ending balance (in shares)	20,243,000	21,422,000	20,243,000	21,422,000
Ending balance	$ 5,007	$ 470	$ 5,007	$ 470
Limited Partners \| Series 60 Operating Partnership Units Limited Partners
Increase (Decrease) in Partners' Capital [Roll Forward]
Beginning balance (in shares)	5,380,000	5,738,000	5,558,000	5,884,000
Beginning balance	$ 681	$ (637)	$ 16	$ (1,395)
Conversion of operating partnership units to ESRT Partner's Capital (in shares)	(55,000)	(60,000)	(233,000)	(206,000)
Conversion of operating partnership units to ESRT Partner's Capital	$ (8)	$ (5)	$ (12)	$ 28
Distributions	(187)	(199)	(569)	(604)
Net income (loss)	394	192	1,372	813
Other comprehensive income (loss)	$ 142	$ 426	$ 215	$ 935
Ending balance (in shares)	5,325,000	5,678,000	5,325,000	5,678,000
Ending balance	$ 1,022	$ (223)	$ 1,022	$ (223)
Limited Partners \| Series 250 Operating Partnership Units Limited Partners
Increase (Decrease) in Partners' Capital [Roll Forward]
Beginning balance (in shares)	2,669,000	2,862,000	2,789,000	2,970,000
Beginning balance	$ 375	$ (277)	$ 76	$ (692)
Conversion of operating partnership units to ESRT Partner's Capital (in shares)	(24,000)	(38,000)	(144,000)	(146,000)
Conversion of operating partnership units to ESRT Partner's Capital	$ (3)	$ (3)	$ (16)	$ 22
Distributions	(92)	(100)	(281)	(303)
Net income (loss)	188	100	654	426
Other comprehensive income (loss)	$ 67	$ 223	$ 102	$ 490
Ending balance (in shares)	2,645,000	2,824,000	2,645,000	2,824,000
Ending balance	$ 535	$ (57)	$ 535	$ (57)
Private Perpetual Preferred Units
Increase (Decrease) in Partners' Capital [Roll Forward]
Beginning balance (in shares)	6,224,000	6,224,000	6,224,000	6,224,000
Beginning balance	$ 29,940	$ 29,940	$ 29,940	$ 29,940
Distributions	(1,050)	(1,050)	(3,151)	(3,151)
Net income (loss)	$ 1,050	$ 1,050	$ 3,151	$ 3,151
Ending balance (in shares)	6,224,000	6,224,000	6,224,000	6,224,000
Ending balance	$ 29,940	$ 29,940	$ 29,940	$ 29,940
Non-controlling Interest in Other Partnerships
Increase (Decrease) in Partners' Capital [Roll Forward]
Beginning balance	15,440	14,881	15,466	13,252
Contributions from consolidated joint ventures	75		187	224
Net income (loss)	111	(49)	69	(271)
Other comprehensive income (loss)	480	670	384	2,297
Ending balance	$ 16,106	$ 15,502	$ 16,106	$ 15,502

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash Flows From Operating Activities
Net income (loss)	$ 68,577	$ 41,592
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	140,312	172,394
Gain on disposition of property	(29,261)	(27,170)
Amortization of non-cash items within interest expense	6,804	7,514
Amortization of acquired above- and below-market leases, net	(1,932)	(4,136)
Amortization of acquired below-market ground leases	5,873	5,873
Straight-lining of rental revenue	(17,430)	(18,533)
Equity based compensation	14,732	15,599
Increase (decrease) in cash flows due to changes in operating assets and liabilities:
Security deposits	14,293	(1,198)
Tenant and other receivables	(13,459)	(11,707)
Deferred leasing costs	(11,838)	(31,983)
Prepaid expenses and other assets	23,569	23,630
Accounts payable and accrued expenses	(6,055)	2,511
Deferred revenue and other liabilities	1,863	(401)
Net cash provided by operating activities	196,048	173,985
Cash Flows From Investing Activities
Acquisition of real estate property	(26,910)	0
Net proceeds from disposition of property	88,910	0
Development costs	0	(31)
Additions to building and improvements	(101,379)	(89,085)
Net cash used in investing activities	(39,379)	(89,116)
Cash Flows From Financing Activities
Repayment of mortgage notes payable	(6,685)	(5,163)
Contributions from consolidated joint ventures	187	224
Repurchases of common units	(13,105)	(82,545)
Distributions	(30,791)	(32,208)
Net cash used in financing activities	(50,394)	(119,692)
Net increase (decrease) in cash and cash equivalents and restricted cash	106,275	(34,823)
Cash and cash equivalents and restricted cash—beginning of period	314,678	474,638
Cash and cash equivalents and restricted cash—end of period	420,953	439,815
Reconciliation of Cash and Cash Equivalents and Restricted Cash:
Cash and cash equivalents at beginning of period	264,434	423,695
Restricted cash at beginning of period	50,244	50,943
Cash and cash equivalents at end of period	353,999	387,248
Restricted cash at end of period	66,954	52,567
Cash and cash equivalents and restricted cash	420,953	439,815
Supplemental disclosures of cash flow information:
Cash paid for interest	69,739	67,673
Cash paid for income taxes	578	188
Non-cash investing and financing activities:
Building and improvements included in accounts payable and accrued expenses	44,099	55,320
Write-off of fully depreciated assets	23,058	55,585
Derivative instruments at fair values included in prepaid expenses and other assets	25,578	18,457
Conversion of operating partnership units to ESRT partner's capital	15,682	2,384
Disposal of land in connection with foreclosure	0	1,680
Extinguishment of debt in connection with property disposition	$ 0	$ 30,000

Description of Business and Organization	9 Months Ended
Description of Business and Organization	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business and Organization	Description of Business and Organization As used in these condensed consolidated financial statements, unless the context otherwise requires, “we,” “us,” “our,” and the “Company,” mean Empire State Realty OP, L.P. and its consolidated subsidiaries. Empire State Realty OP, L.P. (the "Operating Partnership") is the entity through which Empire State Realty Trust, Inc. (“ESRT”), a New York City-focused real estate investment trust ("REIT"), conducts all of its business and owns (either directly or through subsidiaries) substantially all of its assets. We have four revenue drivers: a portfolio of modernized, amenitized and well-located office, retail, and multifamily assets. ESRT’s flagship Empire State Building – the “World’s Most Famous Building” – also includes its Observatory Experience, Tripadvisor’s #1 United States destination attraction in its 2023 Travelers’ Choice Best of the Best Awards for two consecutive years. As of September 30, 2023, ESRT’s portfolio is comprised of approximately 8.6 million rentable square feet of office space, 0.7 million rentable square feet of retail space and 727 residential units. Our office portfolio included 11 properties (including three long-term ground leasehold interests) encompassing approximately 8.6 million rentable square feet. Nine of these office properties are located in midtown Manhattan and encompass approximately 7.6 million rentable square feet, including the Empire State Building. The remaining two office properties encompass approximately 1.1 million rentable square feet and are located in Stamford, Connecticut, with immediate access to mass transportation. Additionally, we have entitled land adjacent to one of the Stamford office properties, that can support the development of an approximately 0.4 million rentable square foot office building and garage. Our retail portfolio included approximately 0.7 million rentable square feet of retail space, predominantly located in Manhattan. Our multifamily portfolio included 727 residential units in New York City, 721 of which are located in Manhattan. We were organized as a Delaware limited partnership on November 28, 2011, and commenced operations upon completion of the initial public offering of ESRT’s Class A common stock and related formation transactions on October 7, 2013 (the "IPO"). ESRT's Class A common stock, par value $0.01 per share, is listed on the New York Stock Exchange under the symbol "ESRT." ESRT, as the sole general partner in our Company, has responsibility and discretion in the management and control of our Company, and our limited partners, in such capacity, have no authority to transact business for, or participate in the management activities, of our Company. As of September 30, 2023, ESRT owned approximately 59.9% of our operating partnership units.

Summary of Significant Accounting Policies	9 Months Ended
Summary of Significant Accounting Policies	Sep. 30, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies There have been no material changes to the summary of significant accounting policies included in the "Summary of Significant Accounting Policies" section in our Annual Report on Form 10-K for the year ended December 31, 2022 (the “Annual Report”). Basis of Quarterly Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"), for interim financial information, and with the rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and footnote disclosures required by GAAP for complete financial statements have been condensed or omitted in accordance with such rules and regulations. In the opinion of management, all adjustments and eliminations (including intercompany balances and transactions), consisting of normal recurring adjustments, considered necessary for the fair presentation of the financial statements have been included. The results of operations for the periods presented are not necessarily indicative of the results that may be expected for the corresponding full years. These financial statements should be read in conjunction with the financial statements and accompanying notes included in the financial statements for the year ended December 31, 2022 contained in our Annual Report. Our observatory business is subject to seasonality based on tourism trends and the weather. Pre-pandemic, approximately 16.0% to 18.0% of our annual observatory revenue was realized in the first quarter, 26.0% to 28.0% was realized in the second quarter, 31.0% to 33.0% was realized in the third quarter, and 23.0% to 25.0% was realized in the fourth quarter. Our multifamily business experiences some seasonality based on general market trends in New York City – the winter months (November through January) are slower in terms of leasing activity. We seek to mitigate this by staggering lease terms such that lease expirations are matched with seasonal demand. We do not consider the balance of our business to be subject to material seasonal fluctuations. We consolidate entities in which we have a controlling financial interest. In determining whether we have a controlling financial interest in a partially owned entity and the requirement to consolidate the accounts of that entity, we consider factors such as ownership interest, board representation, management representation, authority to make decisions, and contractual and substantive participating rights of the partners/members. For variable interest entities ("VIE"), we consolidate the entity if we are deemed to have a variable interest in the entity and through that interest we are deemed the primary beneficiary. The primary beneficiary of a VIE is the entity that has (i) the power to direct the activities that most significantly impact the entity's economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE. The primary beneficiary is required to consolidate the VIE. At December 31, 2022, we were the primary beneficiary of a variable interest in the intermediary entity which held title to 298 Mulberry, the multifamily asset acquired in December 2022. The intermediary entity was utilized to execute a like-kind exchange and subsequent to March 31, 2023, the like-kind exchange was completed and we took title to 298 Mulberry. Therefore, we had no VIEs at September 30, 2023. We will assess the accounting treatment for each investment we may have in the future. This assessment will include a review of each entity’s organizational agreement to determine which party has what rights and whether those rights are protective or participating. For all VIEs, we will review such agreements in order to determine which party has the power to direct the activities that most significantly impact the entity’s economic performance and benefit. In situations where we or our partner could approve, among other things, the annual budget, or leases that cover more than a nominal amount of space relative to the total rentable space at each property, we would not consolidate the investment as we consider these to be substantive participation rights that result in shared power of the activities that would most significantly impact the performance and benefit of such joint venture investment. A non-controlling interest in a consolidated subsidiary is defined as the portion of the equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. Non-controlling interests are required to be presented as a separate component of equity in the condensed consolidated balance sheets and in the condensed consolidated statements of operations by requiring earnings and other comprehensive income to be attributed to controlling and non-controlling interests. Accounting Estimates The preparation of the condensed consolidated financial statements in accordance with GAAP requires management to use estimates and assumptions that in certain circumstances affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Significant items subject to such estimates and assumptions include allocation of the purchase price of acquired real estate properties among tangible and intangible assets, determination of the useful life of real estate properties and other long-lived assets, valuation and impairment analysis of commercial real estate properties, right of use assets and other long-lived and indefinite-lived assets, estimate of tenant expense reimbursements, valuation of the allowance for doubtful accounts, and valuation of derivative instruments, ground lease liabilities, senior unsecured notes, mortgage notes payable, unsecured term loan and revolving credit facilities, and equity-based compensation. These estimates are prepared using management’s best judgment, after considering past, current, and expected events and economic conditions. Actual results could differ from those estimates.

Acquisitions and Dispositions

9 Months Ended

Sep. 30, 2023

Business Combination and Dispositions [Abstract]

Acquisitions and Dispositions

Property Acquisitions

The following table summarizes properties acquired during the nine and twelve months ended September 30, 2023 and December 31, 2022, respectively (amounts in thousands):


						Intangibles
Property	Date Acquired	Land		Building and Improvements		Assets		Liabilities		Total*
Williamsburg Retail, Brooklyn	9/14/2023	$	4,851	$	20,936	$	1,573	$	(300)	$	27,060
298 Mulberry Street, Manhattan	12/20/2022	$	40,935	$	69,508	$	5,300	$	(150)	$	115,593

*Includes total capitalized transaction costs of $1.4 million.

Property Dispositions

The following table summarizes properties disposed of during the nine and twelve months ended September 30, 2023 and December 31, 2022, respectively (amounts in thousands):


Property	Date of Disposal	Sales Price		Gain on Disposition
500 Mamaroneck Avenue, Harrison, New York*	4/5/2023	$	53,000	$	13,572
69-97 and 103-107 Main Street, Westport, Connecticut	2/1/2023	$	40,000	$	15,689
10 Bank Street, White Plains, New York	12/7/2022	$	42,000	$	6,818
383 Main Avenue, Norwalk, Connecticut**	4/1/2022	$	30,000	$	27,170

**We transferred the property, which was encumbered by a $30.0 million mortgage, back to the lender in a consensual foreclosure and recognized a non-cash gain upon the disposition.

Deferred Costs, Acquired Lease Intangibles and Goodwill

9 Months Ended

Sep. 30, 2023

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Deferred Costs, Acquired Lease Intangibles and Goodwill

Deferred costs, net, consisted of the following as of September 30, 2023 and December 31, 2022 (amounts in thousands):


	September 30, 2023		December 31, 2022
Leasing costs	$	222,272	$	218,707
Acquired in-place lease value and deferred leasing costs	158,518		160,683
Acquired above-market leases	24,430		27,833
	405,220		407,223
Less: accumulated amortization	(233,132)		(223,246)
Total deferred costs, net, excluding net deferred financing costs	$	172,088	$	183,977

Amortizing acquired intangible assets and liabilities consisted of the following as of September 30, 2023 and December 31, 2022 (amounts in thousands):


	September 30, 2023		December 31, 2022
Acquired below-market ground leases	$	396,916	$	396,916
Less: accumulated amortization	(73,717)		(67,843)
Acquired below-market ground leases, net	$	323,199	$	329,073


	September 30, 2023		December 31, 2022
Acquired below-market leases	$	(55,186)	$	(64,656)
Less: accumulated amortization	40,483		46,807
Acquired below-market leases, net	$	(14,703)	$	(17,849)

Debt

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Debt

Debt Debt consisted of the following as of September 30, 2023 and December 31, 2022 (amounts in thousands):


	Principal Balance				As of September 30, 2023
	September 30, 2023		December 31, 2022		Stated Rate		Effective Rate(1)		Maturity Date(2)

Mortgage debt
Metro Center	$	80,710	$	82,596	3.59	%	3.67	%	11/5/2024
10 Union Square	50,000		50,000		3.70	%	3.97	%	4/1/2026
1542 Third Avenue	30,000		30,000		4.29	%	4.53	%	5/1/2027
First Stamford Place(3)	176,359		178,823		4.28	%	4.73	%	7/1/2027
1010 Third Avenue and 77 West 55th Street	35,179		35,831		4.01	%	4.21	%	1/5/2028
250 West 57th Street	180,000		180,000		2.83	%	3.21	%	12/1/2030


1333 Broadway	160,000		160,000		4.21	%	4.29	%	2/5/2033
345 East 94th Street - Series A	43,600		43,600		70.0% of SOFR plus 0.95%		3.56	%	11/1/2030
345 East 94th Street - Series B	7,378		7,865		SOFR plus 2.24%		3.56	%	11/1/2030



561 10th Avenue - Series A	114,500		114,500		70.0% of SOFR plus 1.07%		3.85	%	11/1/2033
561 10th Avenue - Series B	16,219		17,415		SOFR plus 2.45%		3.85	%	11/1/2033
Total mortgage debt	893,945		900,630

Senior unsecured notes:(4)
Series A	100,000		100,000		3.93	%	3.96	%	3/27/2025
Series B	125,000		125,000		4.09	%	4.12	%	3/27/2027
Series C	125,000		125,000		4.18	%	4.21	%	3/27/2030
Series D	115,000		115,000		4.08	%	4.11	%	1/22/2028
Series E	160,000		160,000		4.26	%	4.27	%	3/22/2030
Series F	175,000		175,000		4.44	%	4.45	%	3/22/2033
Series G	100,000		100,000		3.61	%	4.89	%	3/17/2032
Series H	75,000		75,000		3.73	%	5.00	%	3/17/2035
Unsecured term loan facility (4)	215,000		215,000		SOFR plus 1.20%		4.22	%	3/19/2025
Unsecured revolving credit facility (4)	—		—		SOFR plus 1.30%		—		3/31/2025
Unsecured term loan facility (4)	175,000		175,000		SOFR plus 1.50%		4.51	%	12/31/2026
Total principal	2,258,945		2,265,630
Deferred financing costs, net	(10,052)		(11,748)
Unamortized debt discount	(7,159)		(7,745)
Total	$	2,241,734	$	2,246,137

______________

(2)Pre-payment is generally allowed for each loan upon payment of a customary pre-payment penalty.

(3)Represents a $164 million mortgage loan bearing interest at 4.09% and a $12.4 million loan bearing interest at 6.25%.

(4)At September 30, 2023, we were in compliance with all debt covenants.

Principal Payments

Aggregate required principal payments at September 30, 2023 are as follows (amounts in thousands):


Year	Amortization		Maturities		Total
2023	$	1,947	$	—	$	1,947
2024	8,861		77,675		86,536
2025	6,893		315,000		321,893
2026	7,330		225,000		232,330
2027	6,461		319,000		325,461
Thereafter	22,079		1,268,699		1,290,778
Total	$	53,571	$	2,205,374	$	2,258,945

Deferred Financing Costs

Deferred financing costs, net, consisted of the following at September 30, 2023 and December 31, 2022 (amounts in thousands):


	September 30, 2023		December 31, 2022
Financing costs	$	43,473	$	43,473
Less: accumulated amortization	(30,020)		(26,753)
Total deferred financing costs, net	$	13,453	$	16,720

Unsecured Revolving Credit and Term Loan Facilities

Senior Unsecured Notes

Accounts Payable and Accrued Expenses

9 Months Ended

Sep. 30, 2023

Payables and Accruals [Abstract]

Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consisted of the following as of September 30, 2023 and December 31, 2022 (amounts in thousands):


	September 30, 2023		December 31, 2022
Accrued capital expenditures	$	44,099	$	44,293
Accounts payable and accrued expenses	36,249		32,927


Accrued interest payable	2,951		3,509

Total accounts payable and accrued expenses	$	83,299	$	80,729

Financial Instruments and Fair Values

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Financial Instruments and Fair Values

Derivative Financial Instruments

The table below summarizes the terms of agreements and the fair values of our derivative financial instruments as of September 30, 2023 and December 31, 2022 (amounts in thousands):


							September 30, 2023				December 31, 2022
Derivative	Notional Amount		Receive Rate	Pay Rate	Effective Date	Expiration Date	Asset		Liability		Asset		Liability

Interest rate swap	$	36,820	70% of 1 Month SOFR	2.5000%	December 1, 2021	November 1, 2030	$	1,281	$	—	$	256	$	—
Interest rate swap	103,790		70% of 1 Month SOFR	2.5000%	December 1, 2021	November 1, 2033	4,279		—		365		—
Interest rate swap	10,710		70% of 1 Month SOFR	1.7570%	December 1, 2021	November 1, 2033	941		—		643		—
Interest rate swap	16,356		1 Month SOFR	2.2540%	December 1, 2021	November 1, 2030	1,261		—		1,070		—
Interest rate cap	6,780		70% of 1 Month SOFR	4.5000%	December 1, 2021	October 1, 2024	—		—		8		—
Interest rate cap	9,188		1 Month SOFR	5.5000%	December 1, 2021	October 1, 2024	22		—		26		—
Interest rate swap	175,000		SOFR Compound	2.5620%	August 31, 2022	December 31, 2026	10,216		—		8,040		—
Interest rate swap	107,500		SOFR Compound	2.6260%	August 19, 2022	March 19, 2025	3,799		—		3,766		—
Interest rate swap	107,500		SOFR OIS Compound	2.6280%	August 19, 2022	March 19, 2025	3,801		—		3,762		—
							$	25,600	$	—	$	17,936	$	—


	Three Months Ended				Nine Months Ended
Effects of Cash Flow Hedges	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Amount of gain recognized in other comprehensive income (loss)	$	9,525	$	19,588	$	16,058	$	39,407
Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into interest expense	2,275		(1,392)		5,429		(7,428)


	Three Months Ended				Nine Months Ended
Effects of Cash Flow Hedges	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Total interest expense presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded	$	(25,382)	$	(25,516)	$	(76,091)	$	(75,572)
Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into interest expense	2,275		(1,392)		5,429		(7,428)

Fair Valuation

The following tables summarize the carrying and estimated fair values of our financial instruments as of September 30, 2023 and December 31, 2022 (amounts in thousands):


	September 30, 2023
			Estimated Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Interest rate swaps included in prepaid expenses and other assets	$	25,578	$	25,578	$	—	$	25,578	$	—

Mortgage notes payable	878,757		752,874		—		—		752,874

Senior unsecured notes - Series A, B, C, D, E, F, G and H	973,819		848,074		—		—		848,074
Unsecured term loan facilities	389,158		390,000		—		—		390,000


	December 31, 2022
			Estimated Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Interest rate swaps included in prepaid expenses and other assets	$	17,936	$	17,936	$	—	$	17,936	$	—

Mortgage notes payable	883,705		783,648		—		—		783,648

Senior unsecured notes - Series A, B, C, D, E, F, G and H	973,659		865,292		—		—		865,292
Unsecured term loan facilities	388,773		390,000		—		—		390,000

Leases

9 Months Ended

Sep. 30, 2023

Leases [Abstract]

Leases

Lessor


	Three Months Ended				Nine Months Ended
Rental revenue	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Fixed payments	$	132,862	$	131,800	$	395,744	$	399,995
Variable payments	18,596		16,490		50,408		45,148
Total rental revenue	$	151,458	$	148,290	$	446,152	$	445,143


Remainder of 2023	$	124,805
2024	510,232
2025	492,160
2026	446,677
2027	426,876
Thereafter	1,997,898
	$	3,998,648

Lessee


Remainder of 2023	$	380
2024	1,518
2025	1,518
2026	1,503
2027	1,482
Thereafter	62,277
Total undiscounted cash flows	68,678
Present value discount	(40,182)
Ground lease liabilities	$	28,496

Leases

Lessor


	Three Months Ended				Nine Months Ended
Rental revenue	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Fixed payments	$	132,862	$	131,800	$	395,744	$	399,995
Variable payments	18,596		16,490		50,408		45,148
Total rental revenue	$	151,458	$	148,290	$	446,152	$	445,143


Remainder of 2023	$	124,805
2024	510,232
2025	492,160
2026	446,677
2027	426,876
Thereafter	1,997,898
	$	3,998,648

Lessee


Remainder of 2023	$	380
2024	1,518
2025	1,518
2026	1,503
2027	1,482
Thereafter	62,277
Total undiscounted cash flows	68,678
Present value discount	(40,182)
Ground lease liabilities	$	28,496

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal Proceedings Except as described below, as of September 30, 2023, we were not involved in any material litigation, nor, to our knowledge, was any material litigation threatened against us or our properties, other than routine litigation arising in the ordinary course of business such as disputes with tenants. We believe that the costs and related liabilities, if any, which may result from such actions will not materially affect our condensed consolidated financial position, operating results or liquidity. As previously disclosed, in October 2014, 12 former investors (the "Claimants") in Empire State Building Associates L.L.C. (“ESBA”), which, prior to the IPO, owned the fee title to the Empire State Building, filed an arbitration claim with the American Arbitration Association against Peter L. Malkin, Anthony E. Malkin, Thomas N. Keltner, Jr., and our subsidiary ESRT MH Holdings LLC, the former supervisor of ESBA (the "Respondents"). The Statement of Claim (also filed later in federal court in New York for the expressed purpose of tolling the statute of limitations) alleged breach of fiduciary duty and related claims in connection with the IPO and formation transactions and sought monetary damages and declaratory relief. The Claimants had opted out of a prior class action bringing similar claims that were settled with court approval. The Respondents filed an answer and counterclaims. In March 2015, the federal court action was stayed on consent of all parties pending the arbitration. Arbitration hearings started in May 2016 and concluded in August 2018. On August 26, 2020, the arbitration panel issued an award that denied all Claimants’ claims with one exception, on which it awarded the Claimants approximately $1.2 million, inclusive of seven years of interest through October 2, 2020. This amount was recorded as an IPO litigation expense in the consolidated statements of operations for the year ended December 31, 2020. The Respondents believe that such award in favor of the Claimants is entirely without merit and, in an action filed in the United States District Court for the Southern District of New York, sought to vacate that portion of the award. On September 27, 2021, the court denied the Respondents' motion to vacate and entered judgement in the aforementioned amount, inclusive of accumulated interest. The Respondents appealed that ruling. On May 10, 2022, the Respondents moved to dismiss the appeal and judgment on the grounds that a recent decision of the United States Supreme Court held that the federal courts have no subject matter jurisdiction over the case. The Claimants opposed the motion. On April 20, 2023, the federal appeals court granted the motion and the federal court action challenging the award was dismissed. On April 21, 2023, the Respondents filed a petition to vacate in part and otherwise confirm in New York State court. On April 28, 2023, all but one of the Claimants filed a motion to confirm in that same court. On July 31, 2023, the New York State court denied the Respondents’ petition to vacate in part and confirmed the award. The Respondents believe that ruling is incorrect and have filed an appeal, which is pending. On August 4, 2023, one final Claimant who had not filed a petition to confirm in New York State court did so. On September 14, 2023, the Respondents filed an opposition to that petition, which is pending. In addition, certain of the Claimants in the federal court action sought to pursue claims in that case against the Respondents. The Respondents believe that any such claims are meritless. The magistrate judge assigned to the action has issued a Report and Recommendation rejecting the Claimants’ claims; the district judge will decide whether to adopt the Report and Recommendation. Pursuant to indemnification agreements which were made with our directors, executive officers and chairman emeritus as part of our formation transactions, Anthony E. Malkin, Peter L. Malkin and Thomas N. Keltner, Jr., our former general counsel, have defense and indemnity rights from us with respect to this arbitration. Unfunded Capital Expenditures At September 30, 2023, we estimate that we will incur approximately $139.3 million of capital expenditures (including tenant improvements and leasing commissions) on our properties pursuant to existing lease agreements. We expect to fund these capital expenditures with operating cash flow, additional property level mortgage financings, our unsecured credit facility, cash on hand and other borrowings. Future property acquisitions may require substantial capital investments for refurbishment and leasing costs. We expect that these financing requirements will be met in a similar fashion. Concentration of Credit Risk Financial instruments that subject us to credit risk consist primarily of cash and cash equivalents, restricted cash, short-term investments, tenant and other receivables and deferred rent receivables. At September 30, 2023, we held on deposit at various major financial institutions cash and cash equivalents and restricted cash balances in excess of amounts insured by the FDIC. Asset Retirement Obligations We are required to accrue costs that we are legally obligated to incur on retirement of our properties which result from acquisition, construction, development and/or normal operation of such properties. Retirement includes sale, abandonment or disposal of a property. Under that standard, a conditional asset retirement obligation represents a legal obligation to perform an asset retirement activity in which the timing and/or method of settlement is conditional on a future event that may or may not be within a company’s control and a liability for a conditional asset retirement obligation must be recorded if the fair value of the obligation can be reasonably estimated. Environmental site assessments and investigations have identified asbestos or asbestos-containing building materials in certain of our properties. As of September 30, 2023, management has no plans to remove or alter these properties in a manner that would trigger federal and other applicable regulations for asbestos removal, and accordingly, the obligations to remove the asbestos or asbestos-containing building materials from these properties have indeterminable settlement dates. As such, we are unable to reasonably estimate the fair value of the associated conditional asset retirement obligation. However, ongoing asbestos abatement, maintenance programs and other required documentation are carried out as required and related costs are expensed as incurred. Other Environmental Matters Certain of our properties have been inspected for soil contamination due to pollutants, which may have occurred prior to our ownership of these properties or subsequently in connection with its development and/or its use. Required remediation to such properties has been completed, other than our post-closing obligations for remediation at our previously owned Westport retail assets, as discussed in more detail in our Annual Report, and at our previously owned 500 Mamaroneck property as discussed in “Financial Statements - Note 3. Acquisitions and Dispositions.” As of September 30, 2023, with the exception of these three assets, management believes that there are no obligations related to environmental remediation other than maintaining the affected sites in conformity with the relevant authority’s mandates and filing the required documents. All such maintenance costs are expensed as incurred. We expect that resolution of the environmental matters relating to the above will not have a material impact on our business, assets, consolidated financial condition, results of operations or liquidity. However, we cannot be certain that we have identified all environmental liabilities at our properties, that all necessary remediation actions have been or will be undertaken at our properties or that we will be indemnified, in full or at all, in the event that such environmental liabilities arise. Insurance Coverage We carry insurance coverage on our properties of types and in amounts with deductibles that we believe are in line with coverage customarily obtained by owners of similar properties.

Capital

9 Months Ended

Sep. 30, 2023

Equity [Abstract]

Capital

Stock and Publicly Traded Operating Partnership Unit Repurchase Program

There were no purchases of equity securities in the three months ended September 30, 2023.

Private Perpetual Preferred Units

Distributions

Incentive and Share-Based Compensation

The following is a summary of ESRT restricted stock and LTIP unit activity for the nine months ended September 30, 2023:


	Restricted Stock	Time-based LTIPs	Market-based LTIPs	Performance-based LTIPs	Weighted Average Grant Fair Value
Unvested balance at December 31, 2022	359,293	2,713,522	4,070,537	510,989	$	6.69
Vested	(111,178)	(1,148,987)	(316,412)	(2,011)	7.66
Granted	370,465	1,733,015	946,398	771,180	5.67
Forfeited or unearned	(8,917)	—	(1,695,323)	(3,795)	4.30
Unvested balance at September 30, 2023	609,663	3,297,550	3,005,200	1,276,363	$	6.53

Earnings Per Unit

For the three and nine months ended September 30, 2023 and 2022, earnings per unit is computed as follows (amounts in thousands, except per share amounts):


	Three Months Ended				Nine Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Numerator:
Net income	$	19,928	$	10,118	$	68,577	$	41,592
Private perpetual preferred unit distributions	(1,050)		(1,050)		(3,151)		(3,151)
Net (income) loss attributable to non-controlling interests in other partnerships	(111)		49		(69)		271
Earnings allocated to unvested units	—		—		—		—
Net income attributable to common unitholders – basic and diluted	$	18,767	$	9,117	$	65,357	$	38,712

Denominator:
Weighted average units outstanding – basic	262,756		266,035		263,379		269,880
Effect of dilutive securities:
Stock-based compensation plans	3,317		1,086		1,890		1,086

Weighted average units outstanding –- diluted	266,073		267,121		265,269		270,966

Earnings per unit:
Basic	$	0.07	$	0.03	$	0.25	$	0.14
Diluted	$	0.07	$	0.03	$	0.25	$	0.14

Related Party Transactions	9 Months Ended
Related Party Transactions	Sep. 30, 2023
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions Supervisory Fee Revenue Since we became a public company, we have earned supervisory fees from entities affiliated with Anthony E. Malkin, our Chairman, President and Chief Executive Officer. These fees were $0.2 million and $0.7 million for the three and nine months ended September 30, 2023, respectively, and $0.2 million and $0.8 million for the three and nine months ended September 30, 2022, respectively. These fees are included within third-party management and other fees. Property Management Fee Revenue Since we became a public company, we have earned property management fees from entities affiliated with Anthony E. Malkin. These fees were $0.1 million and $0.2 million for the three and nine months ended September 30, 2023, respectively, and $0.1 million and $0.2 million for the three and nine months ended September 30, 2022, respectively. These fees are included within third-party management and other fees. Other We receive rent generally at the market rental rate for 5,447 square feet of leased space from an entity affiliated with Anthony E. Malkin at one of our properties. Under the lease, the tenant has the right to cancel such lease without special payment on 90 days’ notice. We also have a shared use agreement with such tenant, to occupy a portion of the leased premises as the office location for Peter L. Malkin, our chairman emeritus and employee, utilizing approximately 15% of the space, for which we pay to such tenant an allocable pro rata share of the cost. We also have agreements with these entities and excluded properties and businesses to provide them with general computer-related support services. Total aggregate revenue was $0.1 million and $0.3 million for the three and nine months ended September 30, 2023, respectively, and $0.1 million and $0.2 million for the three and nine months ended September 30, 2022, respectively. As disclosed in greater detail in our Annual Report, in connection with the sale of our Westport retail assets in February 2023, we advanced a loan to the buyer to facilitate closing with a principal amount of $0.6 million, which bears interest at SOFR plus 3.5% and requires repayment of principal to the extent of available cash flow of the property. As of September 30, 2023, the loan has been fully paid.

Segment Reporting

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Segment Reporting

The following tables provide components of segment net income for each segment for the three and nine months ended September 30, 2023 and 2022 (amounts in thousands):



	Three Months Ended September 30, 2023
	Real Estate		Observatory		Intersegment Elimination		Total
Revenues:
Rental revenue	$	151,458	$	—	$	—	$	151,458
Intercompany rental revenue	22,113		—		(22,113)		—

Observatory revenue	—		37,562		—		37,562

Third-party management and other fees	268		—		—		268
Other revenue and fees	2,238		—		—		2,238
Total revenues	176,077		37,562		(22,113)		191,526
Operating expenses:
Property operating expenses	42,817		—		—		42,817
Intercompany rent expense	—		22,113		(22,113)		—
Ground rent expenses	2,331		—		—		2,331
General and administrative expenses	16,012		—		—		16,012
Observatory expenses	—		9,471		—		9,471
Real estate taxes	32,014		—		—		32,014


Depreciation and amortization	46,593		31		—		46,624
Total operating expenses	139,767		31,615		(22,113)		149,269
Total operating income	36,310		5,947		—		42,257
Other income (expense):
Interest income	4,410		52		—		4,462
Interest expense	(25,382)		—		—		(25,382)


Income before income taxes	15,338		5,999		—		21,337
Income tax expense	(146)		(1,263)		—		(1,409)
Net income	$	15,192	$	4,736	$	—	$	19,928
Segment assets	$	3,959,249	$	257,298	$	—	$	4,216,547
Expenditures for segment assets	$	56,227	$	—	$	—	$	56,227



	Three Months Ended September 30, 2022
	Real Estate		Observatory		Intersegment Elimination		Total
Revenues:
Rental revenue	$	148,290	$	—	$	—	$	148,290
Intercompany rental revenue	19,072		—		(19,072)		—

Observatory revenue	—		33,051		—		33,051

Third-party management and other fees	389		—		—		389
Other revenue and fees	1,982		—		—		1,982
Total revenues	169,733		33,051		(19,072)		183,712
Operating expenses:
Property operating expenses	42,798		—		—		42,798
Intercompany rent expense	—		19,072		(19,072)		—
Ground rent expenses	2,331		—		—		2,331
General and administrative expenses	15,725		—		—		15,725
Observatory expenses	—		8,516		—		8,516
Real estate taxes	31,831		—		—		31,831

Depreciation and amortization	46,933		51		—		46,984
Total operating expenses	139,618		27,639		(19,072)		148,185
Total operating income	30,115		5,412		—		35,527
Other income (expense):
Interest income	1,530		34		—		1,564
Interest expense	(25,516)		—		—		(25,516)


Income before income taxes	6,129		5,446		—		11,575
Income tax expense	(359)		(1,098)		—		(1,457)
Net income	$	5,770	$	4,348	$	—	$	10,118
Segment assets	$	3,950,883	$	250,257	$	—	$	4,201,140
Expenditures for segment assets	$	18,686	$	24	$	—	$	18,710


	Nine Months Ended September 30, 2023
	Real Estate		Observatory		Intersegment Elimination		Total
Revenues:
Rental revenue	$	446,152	$	—	$	—	$	446,152
Intercompany rental revenue	58,969		—		(58,969)		—

Observatory revenue	—		93,149		—		93,149

Third-party management and other fees	1,076		—		—		1,076
Other revenue and fees	6,313		—		—		6,313
Total revenues	512,510		93,149		(58,969)		546,690
Operating expenses:
Property operating expenses	124,380		—		—		124,380
Intercompany rent expense	—		58,969		(58,969)		—
Ground rent expenses	6,994		—		—		6,994
General and administrative expenses	47,795		—		—		47,795
Observatory expenses	—		25,983		—		25,983
Real estate taxes	95,292		—		—		95,292


Depreciation and amortization	140,194		118		—		140,312
Total operating expenses	414,655		85,070		(58,969)		440,756
Total operating income	97,855		8,079		—		105,934
Other income (expense):
Interest income	10,257		139		—		10,396
Interest expense	(76,091)		—		—		(76,091)

Gain on disposition of property	29,261		—		—		29,261
Income before income taxes	61,282		8,218		—		69,500
Income tax expense	(541)		(382)		—		(923)
Net income	$	60,741	$	7,836	$	—	$	68,577
Expenditures for segment assets	$	123,671	$	58	$	—	$	123,729


	Nine Months Ended September 30, 2022
	Real Estate		Observatory		Intersegment Elimination		Total
Revenues:
Rental revenue	$	445,143	$	—	$	—	$	445,143
Intercompany rental revenue	46,801		—		(46,801)		—

Observatory revenue	—		73,660		—		73,660
Lease termination fees	20,032		—		—		20,032
Third-party management and other fees	1,025		—		—		1,025
Other revenue and fees	5,908		—		—		5,908
Total revenues	518,909		73,660		(46,801)		545,768
Operating expenses:
Property operating expenses	118,875		—		—		118,875
Intercompany rent expense	—		46,801		(46,801)		—
Ground rent expenses	6,994		—		—		6,994
General and administrative expenses	45,287		—		—		45,287
Observatory expenses	—		22,507		—		22,507
Real estate taxes	91,637		—		—		91,637


Depreciation and amortization	172,258		136		—		172,394
Total operating expenses	435,051		69,444		(46,801)		457,694
Total operating income (loss)	83,858		4,216		—		88,074
Other income (expense):
Interest income	2,105		39		—		2,144
Interest expense	(75,572)		—		—		(75,572)

Gain on disposition of property	27,170		—		—		27,170
Income (loss) before income taxes	37,561		4,255		—		41,816
Income tax (expense) benefit	(541)		317		—		(224)
Net income	$	37,020	$	4,572	$	—	$	41,592
Expenditures for segment assets	$	70,795	$	315	$	—	$	71,110

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2023
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events None.

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Summary of Significant Accounting Policies (Policies)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2023
Accounting Policies [Abstract]
Basis of Quarterly Presentation	The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"), for interim financial information, and with the rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and footnote disclosures required by GAAP for complete financial statements have been condensed or omitted in accordance with such rules and regulations. In the opinion of management, all adjustments and eliminations (including intercompany balances and transactions), consisting of normal recurring adjustments, considered necessary for the fair presentation of the financial statements have been included.
Principles of Consolidation	The results of operations for the periods presented are not necessarily indicative of the results that may be expected for the corresponding full years. These financial statements should be read in conjunction with the financial statements and accompanying notes included in the financial statements for the year ended December 31, 2022 contained in our Annual Report. Our observatory business is subject to seasonality based on tourism trends and the weather.
Principles of Consolidation for Variable Interest Entities	We consolidate entities in which we have a controlling financial interest. In determining whether we have a controlling financial interest in a partially owned entity and the requirement to consolidate the accounts of that entity, we consider factors such as ownership interest, board representation, management representation, authority to make decisions, and contractual and substantive participating rights of the partners/members. For variable interest entities ("VIE"), we consolidate the entity if we are deemed to have a variable interest in the entity and through that interest we are deemed the primary beneficiary. The primary beneficiary of a VIE is the entity that has (i) the power to direct the activities that most significantly impact the entity's economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE. The primary beneficiary is required to consolidate the VIE. At December 31, 2022, we were the primary beneficiary of a variable interest in the intermediary entity which held title to 298 Mulberry, the multifamily asset acquired in December 2022. The intermediary entity was utilized to execute a like-kind exchange and subsequent to March 31, 2023, the like-kind exchange was completed and we took title to 298 Mulberry. Therefore, we had no VIEs at September 30, 2023. We will assess the accounting treatment for each investment we may have in the future. This assessment will include a review of each entity’s organizational agreement to determine which party has what rights and whether those rights are protective or participating. For all VIEs, we will review such agreements in order to determine which party has the power to direct the activities that most significantly impact the entity’s economic performance and benefit. In situations where we or our partner could approve, among other things, the annual budget, or leases that cover more than a nominal amount of space relative to the total rentable space at each property, we would not consolidate the investment as we consider these to be substantive participation rights that result in shared power of the activities that would most significantly impact the performance and benefit of such joint venture investment. A non-controlling interest in a consolidated subsidiary is defined as the portion of the equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. Non-controlling interests are required to be presented as a separate component of equity in the condensed consolidated balance sheets and in the condensed consolidated statements of operations by requiring earnings and other comprehensive income to be attributed to controlling and non-controlling interests.
Accounting Estimates	The preparation of the condensed consolidated financial statements in accordance with GAAP requires management to use estimates and assumptions that in certain circumstances affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Significant items subject to such estimates and assumptions include allocation of the purchase price of acquired real estate properties among tangible and intangible assets, determination of the useful life of real estate properties and other long-lived assets, valuation and impairment analysis of commercial real estate properties, right of use assets and other long-lived and indefinite-lived assets, estimate of tenant expense reimbursements, valuation of the allowance for doubtful accounts, and valuation of derivative instruments, ground lease liabilities, senior unsecured notes, mortgage notes payable, unsecured term loan and revolving credit facilities, and equity-based compensation. These estimates are prepared using management’s best judgment, after considering past, current, and expected events and economic conditions. Actual results could differ from those estimates.
Fair Valuation	The estimated fair values at September 30, 2023 and December 31, 2022 were determined by management, using available market information and appropriate valuation methodologies. Considerable judgment is necessary to interpret market data and develop estimated fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts we could realize on disposition of the financial instruments. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. The fair value of derivative instruments is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. Although the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by ourselves and our counterparties. The impact of such credit valuation adjustments, determined based on the fair value of each individual contract, was not significant to the overall valuation. As a result, all our derivatives were classified as Level 2 of the fair value hierarchy. The fair values of our mortgage notes payable, senior unsecured notes (Series A, B, C, D, E, F, G and H), unsecured term loan facilities and unsecured revolving credit facility which are determined using Level 3 inputs are estimated by discounting the future cash flows using current interest rates at which similar borrowings could be made by us.

Acquisitions and Dispositions (Tables)

9 Months Ended

Sep. 30, 2023

Business Combination and Dispositions [Abstract]

Schedule of Allocation of Purchase Price for Assets and Liabilities Acquired

The following table summarizes properties acquired during the nine and twelve months ended September 30, 2023 and December 31, 2022, respectively (amounts in thousands):


						Intangibles
Property	Date Acquired	Land		Building and Improvements		Assets		Liabilities		Total*
Williamsburg Retail, Brooklyn	9/14/2023	$	4,851	$	20,936	$	1,573	$	(300)	$	27,060
298 Mulberry Street, Manhattan	12/20/2022	$	40,935	$	69,508	$	5,300	$	(150)	$	115,593

*Includes total capitalized transaction costs of $1.4 million.

Schedule of Real Estate Properties

The following table summarizes properties disposed of during the nine and twelve months ended September 30, 2023 and December 31, 2022, respectively (amounts in thousands):


Property	Date of Disposal	Sales Price		Gain on Disposition
500 Mamaroneck Avenue, Harrison, New York*	4/5/2023	$	53,000	$	13,572
69-97 and 103-107 Main Street, Westport, Connecticut	2/1/2023	$	40,000	$	15,689
10 Bank Street, White Plains, New York	12/7/2022	$	42,000	$	6,818
383 Main Avenue, Norwalk, Connecticut**	4/1/2022	$	30,000	$	27,170

**We transferred the property, which was encumbered by a $30.0 million mortgage, back to the lender in a consensual foreclosure and recognized a non-cash gain upon the disposition.

Deferred Costs, Acquired Lease Intangibles and Goodwill (Tables)

9 Months Ended

Sep. 30, 2023

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Deferred Costs, Net

Deferred costs, net, consisted of the following as of September 30, 2023 and December 31, 2022 (amounts in thousands):


	September 30, 2023		December 31, 2022
Leasing costs	$	222,272	$	218,707
Acquired in-place lease value and deferred leasing costs	158,518		160,683
Acquired above-market leases	24,430		27,833
	405,220		407,223
Less: accumulated amortization	(233,132)		(223,246)
Total deferred costs, net, excluding net deferred financing costs	$	172,088	$	183,977

Deferred financing costs, net, consisted of the following at September 30, 2023 and December 31, 2022 (amounts in thousands):


	September 30, 2023		December 31, 2022
Financing costs	$	43,473	$	43,473
Less: accumulated amortization	(30,020)		(26,753)
Total deferred financing costs, net	$	13,453	$	16,720

Schedule of Amortizing Acquired Intangible Assets and Liabilities

Amortizing acquired intangible assets and liabilities consisted of the following as of September 30, 2023 and December 31, 2022 (amounts in thousands):


	September 30, 2023		December 31, 2022
Acquired below-market ground leases	$	396,916	$	396,916
Less: accumulated amortization	(73,717)		(67,843)
Acquired below-market ground leases, net	$	323,199	$	329,073


	September 30, 2023		December 31, 2022
Acquired below-market leases	$	(55,186)	$	(64,656)
Less: accumulated amortization	40,483		46,807
Acquired below-market leases, net	$	(14,703)	$	(17,849)

Debt (Tables)

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Schedule of Long-Term Debt

Debt consisted of the following as of September 30, 2023 and December 31, 2022 (amounts in thousands):


	Principal Balance				As of September 30, 2023
	September 30, 2023		December 31, 2022		Stated Rate		Effective Rate(1)		Maturity Date(2)

Mortgage debt
Metro Center	$	80,710	$	82,596	3.59	%	3.67	%	11/5/2024
10 Union Square	50,000		50,000		3.70	%	3.97	%	4/1/2026
1542 Third Avenue	30,000		30,000		4.29	%	4.53	%	5/1/2027
First Stamford Place(3)	176,359		178,823		4.28	%	4.73	%	7/1/2027
1010 Third Avenue and 77 West 55th Street	35,179		35,831		4.01	%	4.21	%	1/5/2028
250 West 57th Street	180,000		180,000		2.83	%	3.21	%	12/1/2030


1333 Broadway	160,000		160,000		4.21	%	4.29	%	2/5/2033
345 East 94th Street - Series A	43,600		43,600		70.0% of SOFR plus 0.95%		3.56	%	11/1/2030
345 East 94th Street - Series B	7,378		7,865		SOFR plus 2.24%		3.56	%	11/1/2030



561 10th Avenue - Series A	114,500		114,500		70.0% of SOFR plus 1.07%		3.85	%	11/1/2033
561 10th Avenue - Series B	16,219		17,415		SOFR plus 2.45%		3.85	%	11/1/2033
Total mortgage debt	893,945		900,630

Senior unsecured notes:(4)
Series A	100,000		100,000		3.93	%	3.96	%	3/27/2025
Series B	125,000		125,000		4.09	%	4.12	%	3/27/2027
Series C	125,000		125,000		4.18	%	4.21	%	3/27/2030
Series D	115,000		115,000		4.08	%	4.11	%	1/22/2028
Series E	160,000		160,000		4.26	%	4.27	%	3/22/2030
Series F	175,000		175,000		4.44	%	4.45	%	3/22/2033
Series G	100,000		100,000		3.61	%	4.89	%	3/17/2032
Series H	75,000		75,000		3.73	%	5.00	%	3/17/2035
Unsecured term loan facility (4)	215,000		215,000		SOFR plus 1.20%		4.22	%	3/19/2025
Unsecured revolving credit facility (4)	—		—		SOFR plus 1.30%		—		3/31/2025
Unsecured term loan facility (4)	175,000		175,000		SOFR plus 1.50%		4.51	%	12/31/2026
Total principal	2,258,945		2,265,630
Deferred financing costs, net	(10,052)		(11,748)
Unamortized debt discount	(7,159)		(7,745)
Total	$	2,241,734	$	2,246,137

______________

(2)Pre-payment is generally allowed for each loan upon payment of a customary pre-payment penalty.

(3)Represents a $164 million mortgage loan bearing interest at 4.09% and a $12.4 million loan bearing interest at 6.25%.

(4)At September 30, 2023, we were in compliance with all debt covenants.

Schedule of Aggregate Required Principal Payments

Aggregate required principal payments at September 30, 2023 are as follows (amounts in thousands):


Year	Amortization		Maturities		Total
2023	$	1,947	$	—	$	1,947
2024	8,861		77,675		86,536
2025	6,893		315,000		321,893
2026	7,330		225,000		232,330
2027	6,461		319,000		325,461
Thereafter	22,079		1,268,699		1,290,778
Total	$	53,571	$	2,205,374	$	2,258,945

Schedule of Deferred Costs, Net

Deferred costs, net, consisted of the following as of September 30, 2023 and December 31, 2022 (amounts in thousands):


	September 30, 2023		December 31, 2022
Leasing costs	$	222,272	$	218,707
Acquired in-place lease value and deferred leasing costs	158,518		160,683
Acquired above-market leases	24,430		27,833
	405,220		407,223
Less: accumulated amortization	(233,132)		(223,246)
Total deferred costs, net, excluding net deferred financing costs	$	172,088	$	183,977

Deferred financing costs, net, consisted of the following at September 30, 2023 and December 31, 2022 (amounts in thousands):


	September 30, 2023		December 31, 2022
Financing costs	$	43,473	$	43,473
Less: accumulated amortization	(30,020)		(26,753)
Total deferred financing costs, net	$	13,453	$	16,720

Accounts Payable and Accrued Expenses (Tables)

9 Months Ended

Sep. 30, 2023

Payables and Accruals [Abstract]

Schedule of Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consisted of the following as of September 30, 2023 and December 31, 2022 (amounts in thousands):


	September 30, 2023		December 31, 2022
Accrued capital expenditures	$	44,099	$	44,293
Accounts payable and accrued expenses	36,249		32,927


Accrued interest payable	2,951		3,509

Total accounts payable and accrued expenses	$	83,299	$	80,729

Financial Instruments and Fair Values (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Schedule of the Terms of Agreements and the Fair Value of Derivative Financial Instruments

The table below summarizes the terms of agreements and the fair values of our derivative financial instruments as of September 30, 2023 and December 31, 2022 (amounts in thousands):


							September 30, 2023				December 31, 2022
Derivative	Notional Amount		Receive Rate	Pay Rate	Effective Date	Expiration Date	Asset		Liability		Asset		Liability

Interest rate swap	$	36,820	70% of 1 Month SOFR	2.5000%	December 1, 2021	November 1, 2030	$	1,281	$	—	$	256	$	—
Interest rate swap	103,790		70% of 1 Month SOFR	2.5000%	December 1, 2021	November 1, 2033	4,279		—		365		—
Interest rate swap	10,710		70% of 1 Month SOFR	1.7570%	December 1, 2021	November 1, 2033	941		—		643		—
Interest rate swap	16,356		1 Month SOFR	2.2540%	December 1, 2021	November 1, 2030	1,261		—		1,070		—
Interest rate cap	6,780		70% of 1 Month SOFR	4.5000%	December 1, 2021	October 1, 2024	—		—		8		—
Interest rate cap	9,188		1 Month SOFR	5.5000%	December 1, 2021	October 1, 2024	22		—		26		—
Interest rate swap	175,000		SOFR Compound	2.5620%	August 31, 2022	December 31, 2026	10,216		—		8,040		—
Interest rate swap	107,500		SOFR Compound	2.6260%	August 19, 2022	March 19, 2025	3,799		—		3,766		—
Interest rate swap	107,500		SOFR OIS Compound	2.6280%	August 19, 2022	March 19, 2025	3,801		—		3,762		—
							$	25,600	$	—	$	17,936	$	—

Schedule of Effect of Derivative Financial Instruments Designated as Cash Flow Hedges on Accumulated Other Comprehensive Income (Loss)


	Three Months Ended				Nine Months Ended
Effects of Cash Flow Hedges	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Amount of gain recognized in other comprehensive income (loss)	$	9,525	$	19,588	$	16,058	$	39,407
Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into interest expense	2,275		(1,392)		5,429		(7,428)


	Three Months Ended				Nine Months Ended
Effects of Cash Flow Hedges	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Total interest expense presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded	$	(25,382)	$	(25,516)	$	(76,091)	$	(75,572)
Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into interest expense	2,275		(1,392)		5,429		(7,428)

Schedule of the Carrying and Estimated Fair Values of Financial Instruments

The following tables summarize the carrying and estimated fair values of our financial instruments as of September 30, 2023 and December 31, 2022 (amounts in thousands):


	September 30, 2023
			Estimated Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Interest rate swaps included in prepaid expenses and other assets	$	25,578	$	25,578	$	—	$	25,578	$	—

Mortgage notes payable	878,757		752,874		—		—		752,874

Senior unsecured notes - Series A, B, C, D, E, F, G and H	973,819		848,074		—		—		848,074
Unsecured term loan facilities	389,158		390,000		—		—		390,000


	December 31, 2022
			Estimated Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Interest rate swaps included in prepaid expenses and other assets	$	17,936	$	17,936	$	—	$	17,936	$	—

Mortgage notes payable	883,705		783,648		—		—		783,648

Senior unsecured notes - Series A, B, C, D, E, F, G and H	973,659		865,292		—		—		865,292
Unsecured term loan facilities	388,773		390,000		—		—		390,000

Leases (Tables)

9 Months Ended

Sep. 30, 2023

Leases [Abstract]

Schedule of Components of Rental Revenue

The components of rental revenue for the three and nine months ended September 30, 2023 and 2022 are as follows (amounts in thousands):


	Three Months Ended				Nine Months Ended
Rental revenue	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Fixed payments	$	132,862	$	131,800	$	395,744	$	399,995
Variable payments	18,596		16,490		50,408		45,148
Total rental revenue	$	151,458	$	148,290	$	446,152	$	445,143

Schedule of Future Contractual Minimum Lease Payments on Non-Cancellable Operating Leases to be Received


Remainder of 2023	$	124,805
2024	510,232
2025	492,160
2026	446,677
2027	426,876
Thereafter	1,997,898
	$	3,998,648

Schedule of Future Minimum Lease Payments


Remainder of 2023	$	380
2024	1,518
2025	1,518
2026	1,503
2027	1,482
Thereafter	62,277
Total undiscounted cash flows	68,678
Present value discount	(40,182)
Ground lease liabilities	$	28,496

Capital (Tables)

9 Months Ended

Sep. 30, 2023

Equity [Abstract]

Schedule of ERST Restricted Stock and LTIP Unit Activity

The following is a summary of ESRT restricted stock and LTIP unit activity for the nine months ended September 30, 2023:


	Restricted Stock	Time-based LTIPs	Market-based LTIPs	Performance-based LTIPs	Weighted Average Grant Fair Value
Unvested balance at December 31, 2022	359,293	2,713,522	4,070,537	510,989	$	6.69
Vested	(111,178)	(1,148,987)	(316,412)	(2,011)	7.66
Granted	370,465	1,733,015	946,398	771,180	5.67
Forfeited or unearned	(8,917)	—	(1,695,323)	(3,795)	4.30
Unvested balance at September 30, 2023	609,663	3,297,550	3,005,200	1,276,363	$	6.53

Schedule of Earnings Per Unit

For the three and nine months ended September 30, 2023 and 2022, earnings per unit is computed as follows (amounts in thousands, except per share amounts):


	Three Months Ended				Nine Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Numerator:
Net income	$	19,928	$	10,118	$	68,577	$	41,592
Private perpetual preferred unit distributions	(1,050)		(1,050)		(3,151)		(3,151)
Net (income) loss attributable to non-controlling interests in other partnerships	(111)		49		(69)		271
Earnings allocated to unvested units	—		—		—		—
Net income attributable to common unitholders – basic and diluted	$	18,767	$	9,117	$	65,357	$	38,712

Denominator:
Weighted average units outstanding – basic	262,756		266,035		263,379		269,880
Effect of dilutive securities:
Stock-based compensation plans	3,317		1,086		1,890		1,086

Weighted average units outstanding –- diluted	266,073		267,121		265,269		270,966

Earnings per unit:
Basic	$	0.07	$	0.03	$	0.25	$	0.14
Diluted	$	0.07	$	0.03	$	0.25	$	0.14

Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Schedule of Segment Net Income (Loss) for Each Segment

The following tables provide components of segment net income for each segment for the three and nine months ended September 30, 2023 and 2022 (amounts in thousands):



	Three Months Ended September 30, 2023
	Real Estate		Observatory		Intersegment Elimination		Total
Revenues:
Rental revenue	$	151,458	$	—	$	—	$	151,458
Intercompany rental revenue	22,113		—		(22,113)		—

Observatory revenue	—		37,562		—		37,562

Third-party management and other fees	268		—		—		268
Other revenue and fees	2,238		—		—		2,238
Total revenues	176,077		37,562		(22,113)		191,526
Operating expenses:
Property operating expenses	42,817		—		—		42,817
Intercompany rent expense	—		22,113		(22,113)		—
Ground rent expenses	2,331		—		—		2,331
General and administrative expenses	16,012		—		—		16,012
Observatory expenses	—		9,471		—		9,471
Real estate taxes	32,014		—		—		32,014


Depreciation and amortization	46,593		31		—		46,624
Total operating expenses	139,767		31,615		(22,113)		149,269
Total operating income	36,310		5,947		—		42,257
Other income (expense):
Interest income	4,410		52		—		4,462
Interest expense	(25,382)		—		—		(25,382)


Income before income taxes	15,338		5,999		—		21,337
Income tax expense	(146)		(1,263)		—		(1,409)
Net income	$	15,192	$	4,736	$	—	$	19,928
Segment assets	$	3,959,249	$	257,298	$	—	$	4,216,547
Expenditures for segment assets	$	56,227	$	—	$	—	$	56,227



	Three Months Ended September 30, 2022
	Real Estate		Observatory		Intersegment Elimination		Total
Revenues:
Rental revenue	$	148,290	$	—	$	—	$	148,290
Intercompany rental revenue	19,072		—		(19,072)		—

Observatory revenue	—		33,051		—		33,051

Third-party management and other fees	389		—		—		389
Other revenue and fees	1,982		—		—		1,982
Total revenues	169,733		33,051		(19,072)		183,712
Operating expenses:
Property operating expenses	42,798		—		—		42,798
Intercompany rent expense	—		19,072		(19,072)		—
Ground rent expenses	2,331		—		—		2,331
General and administrative expenses	15,725		—		—		15,725
Observatory expenses	—		8,516		—		8,516
Real estate taxes	31,831		—		—		31,831

Depreciation and amortization	46,933		51		—		46,984
Total operating expenses	139,618		27,639		(19,072)		148,185
Total operating income	30,115		5,412		—		35,527
Other income (expense):
Interest income	1,530		34		—		1,564
Interest expense	(25,516)		—		—		(25,516)


Income before income taxes	6,129		5,446		—		11,575
Income tax expense	(359)		(1,098)		—		(1,457)
Net income	$	5,770	$	4,348	$	—	$	10,118
Segment assets	$	3,950,883	$	250,257	$	—	$	4,201,140
Expenditures for segment assets	$	18,686	$	24	$	—	$	18,710


	Nine Months Ended September 30, 2023
	Real Estate		Observatory		Intersegment Elimination		Total
Revenues:
Rental revenue	$	446,152	$	—	$	—	$	446,152
Intercompany rental revenue	58,969		—		(58,969)		—

Observatory revenue	—		93,149		—		93,149

Third-party management and other fees	1,076		—		—		1,076
Other revenue and fees	6,313		—		—		6,313
Total revenues	512,510		93,149		(58,969)		546,690
Operating expenses:
Property operating expenses	124,380		—		—		124,380
Intercompany rent expense	—		58,969		(58,969)		—
Ground rent expenses	6,994		—		—		6,994
General and administrative expenses	47,795		—		—		47,795
Observatory expenses	—		25,983		—		25,983
Real estate taxes	95,292		—		—		95,292


Depreciation and amortization	140,194		118		—		140,312
Total operating expenses	414,655		85,070		(58,969)		440,756
Total operating income	97,855		8,079		—		105,934
Other income (expense):
Interest income	10,257		139		—		10,396
Interest expense	(76,091)		—		—		(76,091)

Gain on disposition of property	29,261		—		—		29,261
Income before income taxes	61,282		8,218		—		69,500
Income tax expense	(541)		(382)		—		(923)
Net income	$	60,741	$	7,836	$	—	$	68,577
Expenditures for segment assets	$	123,671	$	58	$	—	$	123,729


	Nine Months Ended September 30, 2022
	Real Estate		Observatory		Intersegment Elimination		Total
Revenues:
Rental revenue	$	445,143	$	—	$	—	$	445,143
Intercompany rental revenue	46,801		—		(46,801)		—

Observatory revenue	—		73,660		—		73,660
Lease termination fees	20,032		—		—		20,032
Third-party management and other fees	1,025		—		—		1,025
Other revenue and fees	5,908		—		—		5,908
Total revenues	518,909		73,660		(46,801)		545,768
Operating expenses:
Property operating expenses	118,875		—		—		118,875
Intercompany rent expense	—		46,801		(46,801)		—
Ground rent expenses	6,994		—		—		6,994
General and administrative expenses	45,287		—		—		45,287
Observatory expenses	—		22,507		—		22,507
Real estate taxes	91,637		—		—		91,637


Depreciation and amortization	172,258		136		—		172,394
Total operating expenses	435,051		69,444		(46,801)		457,694
Total operating income (loss)	83,858		4,216		—		88,074
Other income (expense):
Interest income	2,105		39		—		2,144
Interest expense	(75,572)		—		—		(75,572)

Gain on disposition of property	27,170		—		—		27,170
Income (loss) before income taxes	37,561		4,255		—		41,816
Income tax (expense) benefit	(541)		317		—		(224)
Net income	$	37,020	$	4,572	$	—	$	41,592
Expenditures for segment assets	$	70,795	$	315	$	—	$	71,110

Description of Business and Organization (Details) ft² in Millions	9 Months Ended
	Sep. 30, 2023 ft² property_unit office_property parcel $ / shares
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Area of real estate property (in square feet)	8.6
Empire state realty OP \| Empire state realty trust
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
OP units owned by the company (as a percent)	59.90%
ESRT \| Common Class A
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Par value (in dollars per share) \| $ / shares	$ 0.01
Retail Site
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Area of real estate property (in square feet)	0.7
Retail Site \| Manhattan
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Area of real estate property (in square feet)	0.7
Multifamily
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Number of property units \| property_unit	727
Multifamily \| Manhattan
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Number of property units \| property_unit	721
Multifamily \| New York City
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Number of property units \| property_unit	727
Office Building
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Area of real estate property (in square feet)	8.6
Number of offices and properties \| office_property	11
Office Building \| Manhattan
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Area of real estate property (in square feet)	7.6
Number of offices and properties \| office_property	9
Office Building \| Stamford, Connecticut
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Area of real estate property (in square feet)	1.1
Number of offices and properties \| office_property	2
Development Parcel
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Number of offices and properties \| parcel	3
Other Property \| Stamford, Connecticut
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Area of real estate property (in square feet)	0.4

Summary of Significant Accounting Policies (Details)	Sep. 30, 2023
Minimum
Accounting Policies [Line Items]
Observatory revenue realized during the first quarter, previous ten years (as a percent)	16.00%
Observatory revenue realized during the second quarter, previous ten years (as a percent)	26.00%
Observatory revenue realized during the third quarter, previous ten years (as a percent)	31.00%
Observatory revenue realized during the fourth quarter, previous ten years (as a percent)	23.00%
Maximum
Accounting Policies [Line Items]
Observatory revenue realized during the first quarter, previous ten years (as a percent)	18.00%
Observatory revenue realized during the second quarter, previous ten years (as a percent)	28.00%
Observatory revenue realized during the third quarter, previous ten years (as a percent)	33.00%
Observatory revenue realized during the fourth quarter, previous ten years (as a percent)	25.00%

Acquisitions and Dispositions - Narrative (Details) - Williamsburg Retail $ in Millions	Sep. 14, 2023 USD ($) property
Business Acquisition [Line Items]
Consideration paid \| $	$ 26.4
Retail Site
Business Acquisition [Line Items]
Number of businesses acquired	3
Residential
Business Acquisition [Line Items]
Number of businesses acquired	6

Acquisitions and Dispositions - Schedule of Allocation of the Purchase Price for Assets and Liabilities Acquired (Details) - USD ($) $ in Thousands	Sep. 14, 2023	Dec. 20, 2022
Business Acquisition [Line Items]
Capitalized transaction costs	$ 1,400
Williamsburg Retail, Brooklyn
Business Acquisition [Line Items]
Land	4,851
Building and Improvements	20,936
Intangible Assets	1,573
Intangible Liabilities	(300)
Total	$ 27,060
298 Mulberry Street, Manhattan
Business Acquisition [Line Items]
Land		$ 40,935
Building and Improvements		69,508
Intangible Assets		5,300
Intangible Liabilities		(150)
Total		$ 115,593

Acquisitions and Dispositions - Dispositions of Property (Details) - USD ($) $ in Thousands					3 Months Ended		9 Months Ended
	Apr. 05, 2023	Feb. 01, 2023	Dec. 07, 2022	Apr. 01, 2022	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Business Acquisition [Line Items]
Gain on Disposition					$ 0	$ 0	$ 29,261	$ 27,170
Mortgage notes payable, net					$ 878,757		$ 878,757		$ 883,705
Disposal Group, Disposed of by Sale, Not Discontinued Operations \| 500 Mamaroneck Avenue, Harrison, New York
Business Acquisition [Line Items]
Sales Price	$ 53,000
Gain on Disposition	13,572
Estimated post-closing obligations	2,000
Incremental post-closing obligation	$ 3,600
Disposal Group, Disposed of by Sale, Not Discontinued Operations \| 69-97 and 103-107 Main Street, Westport, Connecticut
Business Acquisition [Line Items]
Sales Price		$ 40,000
Gain on Disposition		$ 15,689
Disposal Group, Disposed of by Sale, Not Discontinued Operations \| 10 Bank Street, White Plains, New York
Business Acquisition [Line Items]
Sales Price			$ 42,000
Gain on Disposition			$ 6,818
Disposal Group, Disposed of by Sale, Not Discontinued Operations \| 383 Main Avenue, Norwalk, Connecticut
Business Acquisition [Line Items]
Sales Price				$ 30,000
Gain on Disposition				27,170
Mortgage notes payable, net				$ 30,000

Deferred Costs, Acquired Lease Intangibles and Goodwill - Deferred Costs, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Leasing costs	$ 222,272	$ 218,707
Total deferred costs, gross amount	405,220	407,223
Less: accumulated amortization	(233,132)	(223,246)
Total deferred costs, net, excluding net deferred financing costs	172,088	183,977
Acquired in-place lease value and deferred leasing costs
Finite-Lived Intangible Assets [Line Items]
Acquired finite-lived intangible assets	158,518	160,683
Acquired above-market leases
Finite-Lived Intangible Assets [Line Items]
Acquired finite-lived intangible assets	$ 24,430	$ 27,833

Deferred Costs, Acquired Lease Intangibles and Goodwill - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Deferred Costs [Line Items]
Amortization expense related to deferred leasing costs	$ 5,800	$ 5,600	$ 17,700	$ 19,800
Rental revenue related to amortization of below-market leases, net of above-market leases	600	700	1,932	4,136
Goodwill	491,479		491,479		$ 491,479
Observatory
Deferred Costs [Line Items]
Goodwill	227,500		227,500		227,500
Real estate
Deferred Costs [Line Items]
Goodwill	264,000		264,000		264,000
Lease agreements
Deferred Costs [Line Items]
Amortization expense related to acquired lease intangibles	1,500	$ 2,200	6,100	$ 10,600
Unsecured revolving credit facility \| Revolving credit facility
Deferred Costs [Line Items]
Net deferred financing costs	$ 3,400		$ 3,400		$ 5,000

Deferred Costs, Acquired Lease Intangibles and Goodwill - Amortizing Acquired Intangible Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Acquired below-market ground leases, net
Acquired below-market ground leases	$ 396,916	$ 396,916
Less: accumulated amortization	(73,717)	(67,843)
Acquired below-market ground leases, net	323,199	329,073
Acquired below-market leases, net
Acquired below-market leases	(55,186)	(64,656)
Less: accumulated amortization	40,483	46,807
Acquired below-market leases, net	$ (14,703)	$ (17,849)

Debt - Long-Term Debt (Details) - USD ($)	9 Months Ended
Debt - Long-Term Debt (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Outstanding borrowings	$ 0	$ 0
Total principal	2,258,945,000
Deferred financing costs, net	(13,453,000)	(16,720,000)
Mortgage debt
Debt Instrument [Line Items]
Mortgage debt	893,945,000	900,630,000
Mortgages, senior notes, and unsecured term loan facilities, not including unsecured revolving credit facility
Debt Instrument [Line Items]
Total principal	2,258,945,000	2,265,630,000
Deferred financing costs, net	(10,052,000)	(11,748,000)
Unamortized debt discount	(7,159,000)	(7,745,000)
Total	2,241,734,000	2,246,137,000
Metro Center \| Mortgage debt
Debt Instrument [Line Items]
Mortgage debt	$ 80,710,000	82,596,000
Stated Rate (as a percent)	3.59%
Effective Rate (as a percent)	3.67%
10 Union Square \| Mortgage debt
Debt Instrument [Line Items]
Mortgage debt	$ 50,000,000	50,000,000
Stated Rate (as a percent)	3.70%
Effective Rate (as a percent)	3.97%
1542 Third Avenue \| Mortgage debt
Debt Instrument [Line Items]
Mortgage debt	$ 30,000,000	30,000,000
Stated Rate (as a percent)	4.29%
Effective Rate (as a percent)	4.53%
First Stamford Place \| Mortgage debt
Debt Instrument [Line Items]
Mortgage debt	$ 176,359,000	178,823,000
Stated Rate (as a percent)	4.28%
Effective Rate (as a percent)	4.73%
First Stamford Place - First Lien \| Mortgage debt
Debt Instrument [Line Items]
Stated Rate (as a percent)	4.09%
Face amount	$ 164,000,000
First Stamford Place - Second Lien \| Mortgage debt
Debt Instrument [Line Items]
Stated Rate (as a percent)	6.25%
Face amount	$ 12,400,000
1010 Third Avenue and 77 West 55th Street \| Mortgage debt
Debt Instrument [Line Items]
Mortgage debt	$ 35,179,000	35,831,000
Stated Rate (as a percent)	4.01%
Effective Rate (as a percent)	4.21%
250 West 57th Street \| Mortgage debt
Debt Instrument [Line Items]
Mortgage debt	$ 180,000,000	180,000,000
Stated Rate (as a percent)	2.83%
Effective Rate (as a percent)	3.21%
1333 Broadway \| Mortgage debt
Debt Instrument [Line Items]
Mortgage debt	$ 160,000,000	160,000,000
Stated Rate (as a percent)	4.21%
Effective Rate (as a percent)	4.29%
345 East 94th Street - Series A \| Mortgage debt
Debt Instrument [Line Items]
Mortgage debt	$ 43,600,000	43,600,000
Effective Rate (as a percent)	3.56%
345 East 94th Street - Series A \| Mortgage debt \| SOFR
Debt Instrument [Line Items]
Variable rate, effective percentage (as a percent)	70.00%
Basis spread on variable rate (as a percent)	0.95%
345 East 94th Street - Series B \| Mortgage debt
Debt Instrument [Line Items]
Mortgage debt	$ 7,378,000	7,865,000
Effective Rate (as a percent)	3.56%
345 East 94th Street - Series B \| Mortgage debt \| SOFR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	2.24%
561 10th Avenue - Series A \| Mortgage debt
Debt Instrument [Line Items]
Mortgage debt	$ 114,500,000	114,500,000
Effective Rate (as a percent)	3.85%
561 10th Avenue - Series A \| Mortgage debt \| SOFR
Debt Instrument [Line Items]
Variable rate, effective percentage (as a percent)	70.00%
Basis spread on variable rate (as a percent)	1.07%
561 10th Avenue - Series B \| Mortgage debt
Debt Instrument [Line Items]
Mortgage debt	$ 16,219,000	17,415,000
Effective Rate (as a percent)	3.85%
561 10th Avenue - Series B \| Mortgage debt \| SOFR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	2.45%
Series A \| Senior unsecured notes
Debt Instrument [Line Items]
Total	$ 100,000,000	100,000,000
Stated Rate (as a percent)	3.93%
Effective Rate (as a percent)	3.96%
Series B \| Senior unsecured notes
Debt Instrument [Line Items]
Total	$ 125,000,000	125,000,000
Stated Rate (as a percent)	4.09%
Effective Rate (as a percent)	4.12%
Series C \| Senior unsecured notes
Debt Instrument [Line Items]
Total	$ 125,000,000	125,000,000
Stated Rate (as a percent)	4.18%
Effective Rate (as a percent)	4.21%
Series D \| Senior unsecured notes
Debt Instrument [Line Items]
Total	$ 115,000,000	115,000,000
Stated Rate (as a percent)	4.08%
Effective Rate (as a percent)	4.11%
Series E \| Senior unsecured notes
Debt Instrument [Line Items]
Total	$ 160,000,000	160,000,000
Stated Rate (as a percent)	4.26%
Effective Rate (as a percent)	4.27%
Series F \| Senior unsecured notes
Debt Instrument [Line Items]
Total	$ 175,000,000	175,000,000
Stated Rate (as a percent)	4.44%
Effective Rate (as a percent)	4.45%
Series G \| Senior unsecured notes
Debt Instrument [Line Items]
Total	$ 100,000,000	100,000,000
Stated Rate (as a percent)	3.61%
Effective Rate (as a percent)	4.89%
Series H \| Senior unsecured notes
Debt Instrument [Line Items]
Total	$ 75,000,000	75,000,000
Stated Rate (as a percent)	3.73%
Effective Rate (as a percent)	5.00%
Unsecured term loan facilities \| Revolving credit facility
Debt Instrument [Line Items]
Outstanding borrowings	$ 215,000,000	215,000,000
Effective Rate (as a percent)	4.22%
Unsecured term loan facilities \| Revolving credit facility \| SOFR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	1.20%
Unsecured revolving credit facility \| Revolving credit facility
Debt Instrument [Line Items]
Outstanding borrowings	$ 0	0
Effective Rate (as a percent)	0.00%
Unsecured revolving credit facility \| Revolving credit facility \| SOFR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	1.30%
Unsecured term loan facilities \| Revolving credit facility
Debt Instrument [Line Items]
Outstanding borrowings	$ 175,000,000	$ 175,000,000
Effective Rate (as a percent)	4.51%
Unsecured term loan facilities \| Revolving credit facility \| SOFR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	1.50%

Debt - Aggregate Required Principal Payments (Details) $ in Thousands	Sep. 30, 2023 USD ($)
Amortization
2023	$ 1,947
2024	8,861
2025	6,893
2026	7,330
2027	6,461
Thereafter	22,079
Total	53,571
Maturities
2023	0
2024	77,675
2025	315,000
2026	225,000
2027	319,000
Thereafter	1,268,699
Total	2,205,374
Total
2023	1,947
2024	86,536
2025	321,893
2026	232,330
2027	325,461
Thereafter	1,290,778
Total	$ 2,258,945

Debt - Deferred Financing Costs, Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Debt Disclosure [Abstract]
Financing costs	$ 43,473		$ 43,473		$ 43,473
Less: accumulated amortization	(30,020)		(30,020)		(26,753)
Total deferred financing costs, net	13,453		13,453		$ 16,720
Amortization expense related to deferred financing costs	$ 1,100	$ 1,200	$ 3,300	$ 3,800

Debt - Unsecured Revolving Credit and Term Loan Facilities (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022	Mar. 19, 2020
Line of Credit Facility [Line Items]
Outstanding borrowings	$ 0	$ 0
Revolving credit facility \| Credit Facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity	1,065,000,000.000
Revolving credit facility \| Unsecured revolving credit facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity	850,000,000
Outstanding borrowings	0	0
Revolving credit facility \| Unsecured term loan facilities
Line of Credit Facility [Line Items]
Maximum borrowing capacity	215,000,000
Outstanding borrowings	215,000,000	215,000,000
Revolving credit facility \| Unsecured term loan facilities
Line of Credit Facility [Line Items]
Maximum borrowing capacity			$ 175,000,000
Outstanding borrowings	$ 175,000,000	$ 175,000,000
Accordion feature, new maximum borrowing capacity			$ 225,000,000

Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Accrued capital expenditures	$ 44,099	$ 44,293
Accounts payable and accrued expenses	36,249	32,927
Accrued interest payable	2,951	3,509
Total accounts payable and accrued expenses	$ 83,299	$ 80,729

Financial Instruments and Fair Values - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Designated as hedging instrument \| Cash flow hedging
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain to be reclassified into interest expense within the next 12 months			$ 8,800,000
Interest Rate Swap And Interest Rate Cap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swaps liability	$ 0		0
Interest Rate Swap And Interest Rate Cap \| Designated as hedging instrument \| Cash flow hedging
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Aggregate notional value	573,600,000		573,600,000		$ 574,800,000
Interest rate swaps included in prepaid expenses and other assets	25,600,000		25,600,000		$ 17,900,000
Net unrealized gains on valuation of interest rate swap agreements	$ 7,300,000	$ 21,000,000	$ 10,600,000	$ 46,800,000

Financial Instruments and Fair Values - Summary of the Terms of Agreements and the Fair Value of Derivative Financial Instruments (Details) - Designated as hedging instrument - Cash flow hedging - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Derivatives, Fair Value [Line Items]
Asset	$ 25,600,000	$ 17,936,000
Liability	0	0
SOFR \| Interest Rate Swap, One Month SOFR, 2.5000 %, Swap Number One
Derivatives, Fair Value [Line Items]
Notional Amount	$ 36,820,000
Receive Rate (as a percent)	70.00%
Pay Rate	2.50%
Asset	$ 1,281,000	256,000
Liability	0	0
SOFR \| Interest Rate Swap, One Month SOFR, 2.5000 %, Swap Number Two
Derivatives, Fair Value [Line Items]
Notional Amount	$ 103,790,000
Receive Rate (as a percent)	70.00%
Pay Rate	2.50%
Asset	$ 4,279,000	365,000
Liability	0	0
SOFR \| Interest Rate Swap, One Month SOFR, 1.7570%, Interest Swap
Derivatives, Fair Value [Line Items]
Notional Amount	$ 10,710,000
Receive Rate (as a percent)	70.00%
Pay Rate	1.757%
Asset	$ 941,000	643,000
Liability	0	0
SOFR \| Interest Rate Swap, One Month SOFR, 2.2540%
Derivatives, Fair Value [Line Items]
Notional Amount	$ 16,356,000
Pay Rate	2.254%
Asset	$ 1,261,000	1,070,000
Liability	0	0
SOFR \| Interest Rate Cap, One Month SOFR, 4.5000%
Derivatives, Fair Value [Line Items]
Notional Amount	$ 6,780,000
Receive Rate (as a percent)	70.00%
Pay Rate	4.50%
Asset	$ 0	8,000
Liability	0	0
SOFR \| Interest Rate Cap, One Month SOFR, 5.5000%
Derivatives, Fair Value [Line Items]
Notional Amount	$ 9,188,000
Pay Rate	5.50%
Asset	$ 22,000	26,000
Liability	0	0
SOFR \| Interest Rate Swap, SOFR Compound, 2.5620%
Derivatives, Fair Value [Line Items]
Notional Amount	$ 175,000,000
Pay Rate	2.562%
Asset	$ 10,216,000	8,040,000
Liability	0	0
SOFR \| Interest Rate Swap, SOFR Compound, 2.6260%
Derivatives, Fair Value [Line Items]
Notional Amount	$ 107,500,000
Pay Rate	2.626%
Asset	$ 3,799,000	3,766,000
Liability	0	0
SOFR \| Interest Rate Swap, SOFR OIS Compound, 2.6280%
Derivatives, Fair Value [Line Items]
Notional Amount	$ 107,500,000
Pay Rate	2.628%
Asset	$ 3,801,000	3,762,000
Liability	$ 0	$ 0

Financial Instruments and Fair Values - Effect of Derivative Financial Instruments Designated as Cash Flow Hedges (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain recognized in other comprehensive income (loss)	$ 9,525	$ 19,588	$ 16,058	$ 39,407
Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into interest expense	2,275	(1,392)	5,429	(7,428)
Interest expense	(25,382)	(25,516)	(76,091)	(75,572)
Interest rate swap
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain recognized in other comprehensive income (loss)	9,525	19,588	16,058	39,407
Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into interest expense	2,275	(1,392)	5,429	(7,428)
Interest rate swap \| Reclassification out of accumulated other comprehensive income \| Accumulated other comprehensive income (loss)
Derivative Instruments, Gain (Loss) [Line Items]
Interest expense	$ 2,275	$ (1,392)	$ 5,429	$ (7,428)

Financial Instruments and Fair Values - Schedule of the Carrying and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Carrying Value \| Mortgage notes payable
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	$ 878,757	$ 883,705
Carrying Value \| Senior notes \| Senior unsecured notes - Series A, B, C, D, E, F, G and H
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	973,819	973,659
Carrying Value \| Revolving credit facility \| Unsecured term loan facilities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	389,158	388,773
Carrying Value \| Interest rate swap
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swaps included in prepaid expenses and other assets	25,578	17,936
Estimated Fair Value \| Mortgage notes payable
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	752,874	783,648
Estimated Fair Value \| Senior notes \| Senior unsecured notes - Series A, B, C, D, E, F, G and H
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	848,074	865,292
Estimated Fair Value \| Revolving credit facility \| Unsecured term loan facilities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	390,000	390,000
Estimated Fair Value \| Level 1 \| Mortgage notes payable
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	0
Estimated Fair Value \| Level 1 \| Senior notes \| Senior unsecured notes - Series A, B, C, D, E, F, G and H
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	0
Estimated Fair Value \| Level 1 \| Revolving credit facility \| Unsecured term loan facilities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	0
Estimated Fair Value \| Level 2 \| Mortgage notes payable
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	0
Estimated Fair Value \| Level 2 \| Senior notes \| Senior unsecured notes - Series A, B, C, D, E, F, G and H
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	0
Estimated Fair Value \| Level 2 \| Revolving credit facility \| Unsecured term loan facilities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	0
Estimated Fair Value \| Level 3 \| Mortgage notes payable
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	752,874	783,648
Estimated Fair Value \| Level 3 \| Senior notes \| Senior unsecured notes - Series A, B, C, D, E, F, G and H
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	848,074	865,292
Estimated Fair Value \| Level 3 \| Revolving credit facility \| Unsecured term loan facilities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	390,000	390,000
Estimated Fair Value \| Interest rate swap
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swaps included in prepaid expenses and other assets	25,578	17,936
Estimated Fair Value \| Interest rate swap \| Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swaps included in prepaid expenses and other assets	0	0
Estimated Fair Value \| Interest rate swap \| Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swaps included in prepaid expenses and other assets	25,578	17,936
Estimated Fair Value \| Interest rate swap \| Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swaps included in prepaid expenses and other assets	$ 0	$ 0

Leases - Narrative (Details) $ in Thousands	Sep. 30, 2023 USD ($) property	Dec. 31, 2022 USD ($)
Operating Leases [Line Items]
Number of properties subject to ground leases \| property	3
Right-of-use assets	$ 28,496	$ 28,670
Lease liabilities	$ 28,496	$ 28,670
Weighted average discount rate (as a percent)	4.50%
Weighted average remaining lease term (in years)	46 years 8 months 12 days
Minimum
Operating Leases [Line Items]
Term of lease (in years)	1 year
Maximum
Operating Leases [Line Items]
Term of lease (in years)	22 years

Leases - Components of Rental Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Leases [Abstract]
Fixed payments	$ 132,862	$ 131,800	$ 395,744	$ 399,995
Variable payments	18,596	16,490	50,408	45,148
Total rental revenue	$ 151,458	$ 148,290	$ 446,152	$ 445,143

Leases - Future Contractual Minimum Lease Payments on Non-Cancellable Operating Leases to be Received (Details) $ in Thousands	Sep. 30, 2023 USD ($)
Leases [Abstract]
Remainder of 2023	$ 124,805
2024	510,232
2025	492,160
2026	446,677
2027	426,876
Thereafter	1,997,898
Total future minimum lease payments on non-cancellable operating leases to be received	$ 3,998,648

Leases - Future Minimum Lease Payments on Ground Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Leases [Abstract]
Remainder of 2023	$ 380
2024	1,518
2025	1,518
2026	1,503
2027	1,482
Thereafter	62,277
Total undiscounted cash flows	68,678
Present value discount	(40,182)
Ground lease liabilities	$ 28,496	$ 28,670

Commitments and Contingencies - Legal Proceedings (Details) - New york state supreme court, new york county $ in Millions		1 Months Ended
	Aug. 26, 2020 USD ($)	Oct. 31, 2014 participant
Loss Contingencies [Line Items]
Number of plaintiffs opting out of settlement (participant) \| participant		12
Amount awarded to claimants \| $	$ 1.2
Interest period (in years)	7 years

Commitments and Contingencies - Unfunded Capital Expenditures (Details) $ in Millions	Sep. 30, 2023 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Estimated capital expenditures to be incurred	$ 139.3

Capital - Additional Information and Private Perpetual Preferred Units (Details)	3 Months Ended	9 Months Ended
	Sep. 30, 2023 USD ($) vote shares	Sep. 30, 2023 USD ($) class vote shares	May 16, 2019 shares
Shares and Units [Abstract]
LTIP unit, share of stock equivalent (in shares)	1	1
Conversion rate tor LTIP units to OP units	1	1
Dividends on common stock received until performance criteria met for LTIP units (as a percent)	10.00%	10.00%
Dividends on common stock received after performance criteria met for LTIP units (as a percent)	90.00%	90.00%
Dividends on common stock received in periods after performance criteria met for LTIP units (as a percent)	100.00%	100.00%
Stock repurchase authorized amount \| $	$ 500,000,000	$ 500,000,000
Purchases of equity securities (shares)	0
2019 Plan
Shares and Units [Abstract]
Number of shares authorized under the plan (in shares)	11,000,000	11,000,000	11,000,000
Other partners, certain directors, officers and other members of executive management
Shares and Units [Abstract]
OP units not owned by the Company (in shares)	108,617,764	108,617,764
Other partners, certain directors, officers and other members of executive management \| Empire state realty OP
Shares and Units [Abstract]
OP units not owned by the Company (as a percent)		40.10%
Empire state realty trust
Shares and Units [Abstract]
Number of classes of stock \| class		2
Exchange ratio	0.020	0.020
Number of voting rights \| vote	50	50
Empire state realty trust \| Empire state realty OP
Shares and Units [Abstract]
OP units owned by the company (as a percent)		59.90%
Common Class A
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock outstanding (in shares)	161,346,829	161,346,829
Common Class B
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock outstanding (in shares)	986,884	986,884

Capital - Private Perpetual Preferred Units (Details) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Preferred Units [Line Items]
Dividends declared (in USD per share)	$ 0.035	$ 0.035	$ 0.105	$ 0.105
Private perpetual preferred units, series 2019
Preferred Units [Line Items]
Private perpetual preferred units, issued (in shares)	4,664,038		4,664,038		4,664,000
Private perpetual preferred units, liquidation preference (in USD per share)	$ 13.52		$ 13.52		$ 13.52
Preferred units cumulative cash distributions (in USD per share)	$ 0.70		$ 0.70
Private perpetual preferred units, series 2014
Preferred Units [Line Items]
Private perpetual preferred units, issued (in shares)	1,560,000		1,560,000		1,560,000
Private perpetual preferred units issued during period (in shares)			1,560,360
Private perpetual preferred units, liquidation preference (in USD per share)	$ 16.62		$ 16.62		$ 16.62
Dividends declared (in USD per share)			$ 0.60

Capital - Distributions (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Capital - Distributions (Details) - USD ($) $ in Millions	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Equity [Abstract]
Distributions paid to OP unitholders	$ 9.5	$ 9.6	$ 27.6	$ 29.1
Distributions paid to preferred unitholders	$ 1.1	$ 1.1	$ 3.2	$ 3.2

Capital - Incentive and Share-based Compensation (Details) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended		9 Months Ended
	Jul. 31, 2023 USD ($) director shares	Sep. 30, 2023 USD ($) shares	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) $ / shares shares	Sep. 30, 2022 USD ($)	May 16, 2019 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in USD per share) \| $ / shares				$ 5.67
Granted In 2020 And After
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Retirement age (in years)				65 years
Granted Before 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Retirement age (in years)				60 years
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Age of grantee at which LTIP unit and restricted stock awards immediately vest (in years)				60 years
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Age of grantee at which LTIP unit and restricted stock awards immediately vest (in years)				65 years
Awards that meet age and service requirements for vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Noncash share-based compensation expense recognized		$ 0.5	$ 0.4	$ 2.2	$ 2.0
Unrecognized compensation expense		3.5		$ 3.5
Unrecognized compensation expense, period for recognition (in years)				2 years 6 months
Awards that do not meet age and service requirements for vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Noncash share-based compensation expense recognized		4.5	$ 4.8	$ 12.6	$ 13.7
Unrecognized compensation expense		$ 28.1		$ 28.1
Unrecognized compensation expense, period for recognition (in years)				2 years 6 months
Time-based LTIPs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares) \| shares				1,733,015
Threshold of continuous service for retirement eligibility (in years)				10 years
Time-based LTIPs \| Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of directors granted \| director	2
Time-based LTIPs \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)				3 years
Time-based LTIPs \| Median
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)				4 years
Time-based LTIPs \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)				5 years
Time-based LTIPs \| Tranche one \| Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares) \| shares	27,000
Fair value of share-based awards granted in period	$ 0.2
Vesting rights (as a percent)	25.00%
Time-based LTIPs \| Tranche two \| Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)	3 years
Market-based LTIPs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares) \| shares				946,398
Market-based LTIPs \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)				3 years
Market-based LTIPs \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)				4 years
Long-term incentive plan units and restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of share-based awards granted in period				$ 21.7
Granted (in USD per share) \| $ / shares				$ 5.67
Dividend rate (as a percent)				1.70%
Risk free interest rate, minimum (as a percent)				4.40%
Risk free interest rate, maximum (as a percent)				5.00%
Expected price volatility, minimum (as a percent)				35.00%
Expected price volatility, maximum (as a percent)				46.00%
Long-term incentive plan units and restricted stock \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)				2 years
Long-term incentive plan units and restricted stock \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)				5 years 3 months 18 days
2019 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized under the plan (in shares) \| shares		11,000,000		11,000,000		11,000,000
Number of shares that remain available for future issuance (in shares) \| shares		4,200,000		4,200,000

Capital - Summary of ESRT Restricted Stock and LTIP Unit Activity (Details)	9 Months Ended
	Sep. 30, 2023 $ / shares shares
Weighted Average Grant Fair Value
Beginning balance, Unvested (in USD per share) \| $ / shares	$ 6.69
Vested (in USD per share) \| $ / shares	7.66
Granted (in USD per share) \| $ / shares	5.67
Forfeited or unearned (in USD per share) \| $ / shares	4.30
Ending balance, Unvested (in USD per share) \| $ / shares	$ 6.53
Restricted Stock
Restricted Stock and LTIP Units
Beginning balance, Unvested (in shares)	359,293
Vested (in shares)	(111,178)
Granted (in shares)	370,465
Forfeited or unearned (in shares)	(8,917)
Ending balance, Unvested (in shares)	609,663
Time-based LTIPs
Restricted Stock and LTIP Units
Beginning balance, Unvested (in shares)	2,713,522
Vested (in shares)	(1,148,987)
Granted (in shares)	1,733,015
Forfeited or unearned (in shares)	0
Ending balance, Unvested (in shares)	3,297,550
Market-based LTIPs
Restricted Stock and LTIP Units
Beginning balance, Unvested (in shares)	4,070,537
Vested (in shares)	(316,412)
Granted (in shares)	946,398
Forfeited or unearned (in shares)	(1,695,323)
Ending balance, Unvested (in shares)	3,005,200
Performance-based LTIPs
Restricted Stock and LTIP Units
Beginning balance, Unvested (in shares)	510,989
Vested (in shares)	(2,011)
Granted (in shares)	771,180
Forfeited or unearned (in shares)	(3,795)
Ending balance, Unvested (in shares)	1,276,363

Capital - Earnings Per Unit (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Numerator:
Net income	$ 19,928	$ 10,118	$ 68,577	$ 41,592
Private perpetual preferred unit distributions	(1,050)	(1,050)	(3,151)	(3,151)
Net (income) loss attributable to non-controlling interests in other partnerships	(111)	49	(69)	271
Earnings allocated to unvested shares - basic	0	0	0	0
Earnings allocated to unvested shares - diluted	0	0	0	0
Net income attributable to common unitholders - basic	18,767	9,117	65,357	38,712
Net income attributable to common unitholders - diluted	$ 18,767	$ 9,117	$ 65,357	$ 38,712
Denominator:
Weighted average units outstanding - basic (in shares)	262,756	266,035	263,379	269,880
Effect of dilutive securities:
Stock-based compensation plans (in share)	3,317	1,086	1,890	1,086
Weighted average units outstanding - diluted (in shares)	266,073	267,121	265,269	270,966
Earnings per unit:
Basic (in USD per share)	$ 0.07	$ 0.03	$ 0.25	$ 0.14
Diluted (in USD per share)	$ 0.07	$ 0.03	$ 0.25	$ 0.14
Antidilutive securities (in shares)	0	0	0	0

Related Party Transactions (Details) $ in Thousands	3 Months Ended		9 Months Ended
Related Party Transactions (Details) $ in Thousands	Sep. 30, 2023 USD ($) ft² property	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) ft² property	Sep. 30, 2022 USD ($)	Feb. 28, 2023 USD ($)
Related Party Transaction [Line Items]
Total revenues	$ 191,526	$ 183,712	$ 546,690	$ 545,768
Area of real estate property (in square feet) \| ft²	8,600,000		8,600,000
Affliliated entity \| Disposal Group, Disposed of by Sale, Not Discontinued Operations \| 69-97 and 103-107 Main Street, Westport, Connecticut \| SOFR
Related Party Transaction [Line Items]
Loan receivable					$ 600
Basis spread on loan					3.50%
Affliliated entity \| Supervisory fee revenue \| Third party management and other fees
Related Party Transaction [Line Items]
Total revenues	$ 200	200	$ 700	800
Affliliated entity \| Property management fee revenue \| Third party management and other fees
Related Party Transaction [Line Items]
Total revenues	100	100	200	200
Affliliated entity \| Leased space rental
Related Party Transaction [Line Items]
Total revenues	$ 100	$ 100	$ 300	$ 200
Number of properties \| property	1		1
Lease cancellation, notice period (in days)			90 days
Undivided Interest
Related Party Transaction [Line Items]
Area of real estate property (in square feet) \| ft²	5,447		5,447
Chairman emeritus \| Leased space rental
Related Party Transaction [Line Items]
Percentage of lease space occupied by Chairman emeritus and employee			15.00%

Segment Reporting - Narrative (Details)	9 Months Ended
Segment Reporting - Narrative (Details)	Sep. 30, 2023 segment
Segment Reporting [Abstract]
Number of reportable segments	2

Segment Reporting - Components of Segment Net Income (Loss) for Each Segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Revenues:
Rental revenue	$ 151,458	$ 148,290	$ 446,152	$ 445,143
Intercompany rental revenue	0	0	0	0
Observatory revenue	37,562	33,051	93,149	73,660
Lease termination fees	0	0	0	20,032
Third-party management and other fees	268	389	1,076	1,025
Other revenue and fees	2,238	1,982	6,313	5,908
Total revenues	191,526	183,712	546,690	545,768
Operating expenses:
Property operating expenses	42,817	42,798	124,380	118,875
Intercompany rent expense	0	0	0	0
Ground rent expenses	2,331	2,331	6,994	6,994
General and administrative expenses	16,012	15,725	47,795	45,287
Observatory expenses	9,471	8,516	25,983	22,507
Real estate taxes	32,014	31,831	95,292	91,637
Depreciation and amortization	46,624	46,984	140,312	172,394
Total operating expenses	149,269	148,185	440,756	457,694
Total operating income (loss)	42,257	35,527	105,934	88,074
Other income (expense):
Interest income	4,462	1,564	10,396	2,144
Interest expense	(25,382)	(25,516)	(76,091)	(75,572)
Gain on Disposition	0	0	29,261	27,170
Income (loss) before income taxes	21,337	11,575	69,500	41,816
Income tax (expense) benefit	(1,409)	(1,457)	(923)	(224)
Net income	19,928	10,118	68,577	41,592
Segment assets	4,216,547	4,201,140	4,216,547	4,201,140	$ 4,163,594
Expenditures for segment assets	56,227	18,710	123,729	71,110
Intersegment Elimination
Revenues:
Rental revenue	0	0	0	0
Intercompany rental revenue	(22,113)	(19,072)	(58,969)	(46,801)
Observatory revenue	0	0	0	0
Lease termination fees				0
Third-party management and other fees	0	0	0	0
Other revenue and fees	0	0	0	0
Total revenues	(22,113)	(19,072)	(58,969)	(46,801)
Operating expenses:
Property operating expenses	0	0	0	0
Intercompany rent expense	(22,113)	(19,072)	(58,969)	(46,801)
Ground rent expenses	0	0	0	0
General and administrative expenses	0	0	0	0
Observatory expenses	0	0	0	0
Real estate taxes	0	0	0	0
Depreciation and amortization	0	0	0	0
Total operating expenses	(22,113)	(19,072)	(58,969)	(46,801)
Total operating income (loss)	0	0	0	0
Other income (expense):
Interest income	0	0	0	0
Interest expense	0	0	0	0
Gain on Disposition			0	0
Income (loss) before income taxes	0	0	0	0
Income tax (expense) benefit	0	0	0	0
Net income	0	0	0	0
Segment assets	0	0	0	0
Expenditures for segment assets	0	0	0	0
Real Estate \| Operating segments
Revenues:
Rental revenue	151,458	148,290	446,152	445,143
Intercompany rental revenue	22,113	19,072	58,969	46,801
Observatory revenue	0	0	0	0
Lease termination fees				20,032
Third-party management and other fees	268	389	1,076	1,025
Other revenue and fees	2,238	1,982	6,313	5,908
Total revenues	176,077	169,733	512,510	518,909
Operating expenses:
Property operating expenses	42,817	42,798	124,380	118,875
Intercompany rent expense	0	0	0	0
Ground rent expenses	2,331	2,331	6,994	6,994
General and administrative expenses	16,012	15,725	47,795	45,287
Observatory expenses	0	0	0	0
Real estate taxes	32,014	31,831	95,292	91,637
Depreciation and amortization	46,593	46,933	140,194	172,258
Total operating expenses	139,767	139,618	414,655	435,051
Total operating income (loss)	36,310	30,115	97,855	83,858
Other income (expense):
Interest income	4,410	1,530	10,257	2,105
Interest expense	(25,382)	(25,516)	(76,091)	(75,572)
Gain on Disposition			29,261	27,170
Income (loss) before income taxes	15,338	6,129	61,282	37,561
Income tax (expense) benefit	(146)	(359)	(541)	(541)
Net income	15,192	5,770	60,741	37,020
Segment assets	3,959,249	3,950,883	3,959,249	3,950,883
Expenditures for segment assets	56,227	18,686	123,671	70,795
Observatory \| Operating segments
Revenues:
Rental revenue	0	0	0	0
Intercompany rental revenue	0	0	0	0
Observatory revenue	37,562	33,051	93,149	73,660
Lease termination fees				0
Third-party management and other fees	0	0	0	0
Other revenue and fees	0	0	0	0
Total revenues	37,562	33,051	93,149	73,660
Operating expenses:
Property operating expenses	0	0	0	0
Intercompany rent expense	22,113	19,072	58,969	46,801
Ground rent expenses	0	0	0	0
General and administrative expenses	0	0	0	0
Observatory expenses	9,471	8,516	25,983	22,507
Real estate taxes	0	0	0	0
Depreciation and amortization	31	51	118	136
Total operating expenses	31,615	27,639	85,070	69,444
Total operating income (loss)	5,947	5,412	8,079	4,216
Other income (expense):
Interest income	52	34	139	39
Interest expense	0	0	0	0
Gain on Disposition			0	0
Income (loss) before income taxes	5,999	5,446	8,218	4,255
Income tax (expense) benefit	(1,263)	(1,098)	(382)	317
Net income	4,736	4,348	7,836	4,572
Segment assets	257,298	250,257	257,298	250,257
Expenditures for segment assets	$ 0	$ 24	$ 58	$ 315

Empire State Realty OP (AMEX:OGCP)
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