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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

 

 

FORM 8-K

 

CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): October 21, 2024

 

 

 

EMPIRE STATE REALTY TRUST, INC. 

(Exact Name of Registrant as Specified in its Charter)

 

 

Maryland 001-36105 37-1645259
(State or other Jurisdiction
of Incorporation)

(Commission File Number)

(I.R.S. Employer
Identification No.)

 

 

 

EMPIRE STATE REALTY OP, L.P.

(Exact Name of Registrant as Specified in its Charter)

 

 

 

Delaware   001-36106   45-4685158

(State or other Jurisdiction

of Incorporation)

 

(Commission File Number)

 

(I.R.S. Employer

Identification No.)

 

 

 

111 West 33rd Street, 12th Floor

New York, New York 

10120
(Address of Principal Executive Offices) (Zip Code)

 

Registrant’s telephone number, including area code: (212) 687-8700

 

n/a

(Former name or former address, if changed from last report)

 

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

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

 

Title of each class   Trading
Symbol(s)
 

Name of each exchange

on which registered

Empire State Realty Trust, Inc.        
Class A Common Stock, par value $0.01 per share   ESRT   The New York Stock Exchange

Empire State Realty OP, L.P.        
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 is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

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.

 

Co-Registrant CIK
Co-Registrant Amendment Flag
Co-Registrant Form Type
Co-Registrant Document Period EndDate
Co-Registrant Address Line One
Co-Registrant Address Line Two
Co-Registrant City or Town
Co-Registrant State or Province
Co-Registrant City Area Code
Co-Registrant Local Phone Number
Co-Registrant Written Communications
Co-Registrant Solicitating Materials
Co-Registrant PreCommencement Tender Offer
Co-Registrant PreCommencement Issuer Tender Offer
Co-Registrant Emerging growth company

 

 

 

 

Item 2.02. Results of Operations and Financial Condition.

 

On October 21, 2024, Empire State Realty Trust, Inc. (the “Company” or “we”) issued a press release announcing its financial results for the third quarter 2024. The press release referred to certain supplemental information that is available on the Company’s website. The press release and supplemental report are attached hereto as Exhibits 99.1 and 99.2, respectively, and are incorporated by reference herein.

 

The information in Item 2.02 of this Current Report, including Exhibits 99.1 and 99.2, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. Such information shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, unless it is specifically incorporated by reference therein. 

 

2 

 

 

Item 7.01. Regulation FD Disclosure

 

Third Quarter 2024 Earnings

 

As discussed in Item 2.02 above, the Company issued a press release regarding its financial results for the third quarter 2024 and made available on its website certain supplemental information relating thereto.

 

The information in Item 7.01 of this Current Report is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that Section. Such information shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act or the Exchange Act, unless it is specifically incorporated by reference therein.

 

Item 9.01.Financial Statements and Exhibits.

 

(d) Exhibits.

 

Exhibit No. Description
99.1 Press Release announcing financial results for the third quarter 2024
99.2 Supplemental report
104 Cover Page Interactive File (the cover page tags are embedded within the Inline XBRL document).

 

Non-GAAP Supplemental Financial Measures

 

Funds From Operations ("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.  

 

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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")

 

Core FFO adds back to Modified FFO the following items: loss on early extinguishment of debt, acquisition expenses, severance expenses, IPO litigation expense and interest expense associated with property in receivership. The Company believes Core FFO is an important supplemental measure of its operating performance because it excludes 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.

 

4 

 

 

Core Funds Available for Distribution (“Core FAD")

 

In addition to Core FFO, we present Core FAD by (i) adding to Core FFO non-real estate depreciation and amortization, the amortization of deferred financing costs, amortization of debt discounts and non-cash compensation expenses and (ii) deducting straight-line rent, amortization of debt premiums and above/below market rent revenue, and recurring capital improvements such as second generation leasing commissions, tenant improvements, prebuilts, capital expenditures and furniture, fixtures & equipment. Core FAD is presented solely as a supplemental disclosure that we believe provides useful information regarding our ability to fund our dividends. Core FAD 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 FAD is not indicative of cash available to fund ongoing cash needs, including the ability to make cash distributions. There can be no assurance that Core FAD presented by us is comparable to similarly titled measures of other REITs.

 

Net Operating Income (“NOI”) and Property Cash 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, impairment charges 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. The cost of funds is eliminated 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. In some cases, the Company also presents (1) Property Cash NOI, which excludes Observatory NOI and the effects of straight-line rent, fair value lease revenue, and straight-line ground rent expense adjustment, and (2) Property Cash NOI excluding lease termination fees. Property Cash NOI is presented solely as a supplemental disclosure that management believes allows investors to compare NOI performance across periods without taking into account the effect of certain non-cash rental revenues and straight-line ground rent expense adjustment. Similar to depreciation and amortization expense, fair value lease revenues, because of historical cost accounting, may distort operating performance measures at the property level. Additionally, presenting NOI excluding the impact of straight-line rent and straight-line ground rent expense adjustment provides investors with an alternative view of operating performance at the property level that more closely reflects net cash generated in the portfolio. Presenting Property Cash NOI excluding lease termination fees provides investors with additional information that allows them to compare operating performance between periods without taking into account termination fees, which can distort the results for any given period because they generally represent multiple months or years of a tenant’s rental obligations that are paid in a lump sum in connection with a negotiated early termination of the tenant’s lease and are not reflective of the core ongoing operating performance of the Company’s portfolio. However, the usefulness of NOI, Property Cash NOI, and Property Cash NOI excluding lease termination fees 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 and Property Cash NOI may fail to capture significant trends in these components of net income which further limits its usefulness. NOI and Property Cash NOI are measurements of the operating performance of our properties but do not measure our performance as a whole. These metrics therefore are not substitutes for net income as computed in accordance with GAAP. These measures should be analyzed in conjunction with net income computed in accordance with GAAP. Other companies may use different methods for calculating NOI, Property Cash NOI or similarly titled measures and, accordingly, our measures may not be comparable to similarly titled measures reported by other companies that do not define the measure exactly as we do.

 

5 

 

 

Same Store

 

In the Company’s analysis of NOI, particularly to make comparisons of NOI between periods meaningful, it is important to provide information for properties that were owned by the Company throughout each period presented. The Company refers to properties acquired prior to the beginning of the earliest period presented and owned by the Company through the end of the latest period presented as “Same Store”. Same Store therefore excludes properties acquired after the beginning of the earliest period presented or disposed of prior to the end of the latest period presented. Accordingly, it takes at least one year and one quarter after a property is acquired for that property to be included in Same Store. The Company’s definition of Same Store also excludes properties held-for-sale or those which we otherwise expect to dispose of in the subsequent quarter, properties placed in receivership and our multifamily properties. For mixed-use properties, all same store property NOI is represented in the property category that comprises the majority of that mixed-use property’s NOI. As of September 30, 2024, Same Store excludes the North Sixth Street Collection which was acquired in September 2023 and September 2024, and First Stamford Place, Stamford, CT which was placed into receivership in May 2024.

 

6 

 

 

EBITDA and Adjusted EBITDA

We compute EBITDA as net income plus interest expense, interest expense associated with property in receivership, income taxes and depreciation and amortization. We present EBITDA because we believe that EBITDA, along with cash flow from operating activities, investing activities and financing activities, provides investors with an additional indicator of its ability to incur and service debt. EBITDA should not be considered as an alternative to net income (determined in accordance with GAAP), as an indication of our financial performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP), or as a measure of its liquidity. For Adjusted EBITDA, we add back impairment charges and (gain) loss on disposition of property.

 

Net Debt to Adjusted EBITDA

We compute Net Debt to Adjusted EBITDA as the Company’s pro-rata share of gross debt less cash and cash equivalents divided by the Company’s pro-rata share of trailing twelve months Adjusted EBITDA. The Company believes that the presentation of Net Debt to Adjusted EBITDA provides useful information to investors because the Company reviews Net Debt to Adjusted EBITDA as part of the management of its overall financial flexibility, capital structure and leverage based on its percentage ownership interest in all of its assets.

 

7 

 

 

SIGNATURE

 

Pursuant to the requirements of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

EMPIRE STATE REALTY TRUST, INC.
  (Registrant)
   
Date: October 21, 2024 By: /s/ Stephen V. Horn
    Name: Stephen V. Horn
    Title: Executive Vice President, Chief Financial Officer & Chief Accounting Officer  

 

Pursuant to the requirements of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  EMPIRE STATE REALTY OP, L.P.
  (Registrant)
   
  By: Empire State Realty Trust, Inc., as general partner
   
Date: October 21, 2024 By: /s/ Stephen V. Horn
    Name: Stephen V. Horn
    Title: Executive Vice President, Chief Financial Officer & Chief Accounting Officer  

 

8 

 

 

Exhibit 99.1

 

 

 

EMPIRE STATE REALTY TRUST ANNOUNCES THIRD QUARTER 2024 RESULTS

 

– Net Income Per Fully Diluted Share of $0.08 –

– Core FFO Per Fully Diluted Share of $0.26 –

– Signed 304,000 Rentable Square Feet of Leases –

– Closed on $143 Million of Previously Announced $195 Million Retail Acquisition in Williamsburg, Brooklyn –

– Announces Agreement to Acquire Additional Retail Asset on North 6th Street Williamsburg, Brooklyn–

– Over $0.9 Billion of Liquidity, No Floating Rate Debt Exposure –

– 2024 FFO Guidance Raised –

 

New York, New York, October 21, 2024 – Empire State Realty Trust, Inc. (NYSE: ESRT) is a NYC-focused REIT that owns and operates a portfolio of modernized, amenitized, and well-located office, retail, and multifamily assets. ESRT’s flagship Empire State Building, the “World's Most Famous Building,” features its iconic Observatory that was declared the #1 Attraction in the World – and the #1 Attraction in the U.S. for the third consecutive year– in Tripadvisor’s 2024 Travelers’ Choice Awards: Best of the Best Things to Do. The Company is the recognized leader in energy efficiency and indoor environmental quality. Today the Company reported its operational and financial results for the third quarter 2024. All per share amounts are on a fully diluted basis, where applicable.

 

Third Quarter and Recent Highlights

 

·Net Income of $0.08 per share.
·Core Funds From Operations (“Core FFO”) of $0.26 per share, compared to $0.25 per share in the third quarter 2023. Third quarter 2024 Core FFO included $0.02 per share of lease termination fee income.
·Same-Store Property Cash Net Operating Income (“NOI”) increased 5.2% year-over-year, excluding the $0.02 per share of lease termination fees, primarily driven by higher revenues from cash rent commencement inclusive of a net increase of approximately $1.7 million from non-recurring revenue items in the comparable periods, which was partially offset by increases in operating expenses. When adjusted for the non-recurring items, SS Cash NOI increased by approximately 2.6%.
·Manhattan office portfolio leased rate increased by 30bps sequentially and 170bps year-over-year to 93.6%. The total commercial portfolio is 93.0% leased as of September 30, 2024. Manhattan office occupancy increased by 40bps sequentially and 140bps year-over-year to 89.2%. The total commercial portfolio is 88.8% occupied as of September 30, 2024.

 

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·Signed approximately 304,000 rentable square feet of new, renewal and expansion leases. In our Manhattan office portfolio, blended leasing spreads were +2.6%. This is the 13th consecutive quarter of positive leasing spreads.
·Empire State Building Observatory generated $29.7 million of NOI, a 5.6% increase year-over-year.
·Closed on $143 million of the previously announced $195 million acquisition of prime retail assets on North 6th Street in Williamsburg, Brooklyn. The balance is expected to close in the 4th quarter of 2024.
·Entered into an agreement to acquire an additional retail asset located on North 6th Street in Williamsburg, Brooklyn, for approximately $30 million.
·Achieved the highest possible GRESB 5 Star Rating for the fifth consecutive year with a score of 93. ESRT’s overall score ranked first among all listed companies in the Americas for the second year in a row and first in the most competitive peer group within the U.S.

 

Property Operations

 

As of September 30, 2024, the Company’s property portfolio contained 7.8 million rentable square feet of office space, 0.7 million rentable square feet of retail space and 732 residential units, which were occupied and leased as shown below.

 

   September 30,
20241
   June 30,
20241
   September 30,
2023
 
Percent occupied:               
Total commercial portfolio   88.8%   88.5%   87.0%
Total office   88.6%   88.2%   86.7%
Manhattan office   89.2%   88.8%   87.8%
Total retail   91.1%   92.3%   90.4%
                
Percent leased (includes signed leases not commenced):
Total commercial portfolio   93.0%   92.6%   90.5%
Total office   92.9%   92.5%   90.5%
Manhattan office   93.6%   93.3%   91.9%
Total retail   94.0%   93.5%   91.5%
Total multifamily portfolio   96.8%   97.9%   97.1%

 

1 Occupancy and leased percentages for June 30 and September 30, 2024 exclude First Stamford Place.

 

2

 

 

 

 

Leasing

 

The tables that follow summarize leasing activity for the three months ended September 30, 2024. During this period, the Company signed 31 leases that totaled 304,210 square feet. Within the Manhattan office portfolio, the Company signed 25 office leases that totaled 289,329 square feet.

 

Total Portfolio

 

Total Portfolio  Total Leases
Executed
   Total square
footage
executed
   Average cash
rent psf –
leases
executed
   Previously
escalated cash
rents psf
   % of new cash
rent over/ under
previously
escalated rents
 
Office   26    291,418    70.11    68.34    2.6%
Retail   5    12,792    203.88    332.35    (38.7)%
Total Overall   31    304,210    75.74    79.44    (4.7)%

 

Manhattan Office Portfolio

 

Manhattan
Office Portfolio
  Total Leases
Executed
   Total square
footage
executed
   Average cash
rent psf –
leases
executed
   Previously
escalated cash
rents psf
   % of new cash
rent over / under
previously
escalated rents
 
New Office   12    130,688    66.07    63.21    4.5%
Renewal Office   13    158,641    73.11    72.24    1.2%
Total Office   25    289,329    69.93    68.16    2.6%

 

Leasing Activity Highlights

 

·An 11-year 26,782 square foot expansion lease with Hecker Fink LLP at the Empire State Building.
·An 11-year 24,503 square foot new lease with Dynadmic Corporation at 1350 Broadway.
·An 11-year 24,209 square foot new lease with Bloomsbury Publishing at 1359 Broadway.

 

Observatory Results

 

In the third quarter, Observatory revenue was $39.4 million, and expenses were $9.7 million. Observatory NOI was $29.7 million, a 5.6% increase year-over-year. Year-to-date, Observatory NOI was $71.0 million, a 5.7% increase year-over-year.

 

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Balance Sheet

 

The Company had $0.9 billion of total liquidity as of September 30, 2024, which was comprised of $422 million of cash, plus $500 million available under its revolving credit facility. At September 30, 2024, the Company had total debt outstanding of approximately $2.3 billion, no floating rate debt exposure, and a weighted average interest rate of 4.27%. At September 30, 2024, the Company’s ratio of net debt to adjusted EBITDA was 5.2x.

 

Portfolio Transaction Activity

 

In the third quarter, the Company closed on $143 million of the previously announced $195 million all-cash acquisition of prime retail assets on North 6th Street in Williamsburg Brooklyn, with the balance expected to close in the fourth quarter of 2024. In aggregate, the assets comprise approximately 81,000 square feet of retail space that is 90% leased with a weighted average lease term of 7.4 years. Current tenants include Hermes, Nike, Santander Work Café, The North Face, Everlane, Warby Parker, DS Durga, Buck Mason, Chanel, Byredo, and Google. As previously noted, this transaction is consistent with the Company’s strategy to recycle capital and balance sheet capacity from non-core suburban assets into strong NYC assets.

 

In the third quarter, the Company entered into an agreement to acquire an additional retail asset on North 6th Street in Williamsburg, Brooklyn for approximately $30 million. Due to confidentiality requirements, more details on this transaction will be disclosed upon closing expected to occur in mid-2025.

 

Share Repurchase

 

The stock repurchase program began in March 2020, and through October 18, 2024 approximately $293.7 million has been repurchased at a weighted average price of $8.18 per share. There were no share repurchases during the third quarter.

 

Dividend

 

On September 30, 2024, the Company paid a quarterly dividend of $0.035 per share or unit, as applicable, for the third quarter of 2024 to holders of the Company’s Class A common stock (NYSE: ESRT) and Class B common stock and to holders of the Series ES, Series 250 and Series 60 partnership units (NYSE Arca: ESBA, FISK and OGCP, respectively) and Series PR partnership units of Empire State Realty OP, L.P., the Company’s operating partnership (the “Operating Partnership”).

 

On September 30, 2024, the Company paid a quarterly preferred dividend of $0.15 per unit for the third quarter of 2024 to holders of the Operating Partnership’s Series 2014 private perpetual preferred units and a preferred dividend of $0.175 per unit for the third quarter of 2024 to holders of the Operating Partnership’s Series 2019 private perpetual preferred units.

 

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2024 Earnings Outlook

 

The Company provides 2024 guidance and key assumptions, as summarized in the table below. The Company’s guidance does not include the impact of any significant future lease termination fee income or any unannounced acquisition, disposition or other capital markets activity.

 

 

Key Assumptions 2024 Updated
Guidance
(Oct 2024)
2024 Prior
Guidance
 (July 2024)
Comments
Earnings      
Core FFO Per Fully Diluted Share $0.92 to $0.94 $0.90 to $0.94 • 2024 includes $0.04 from multifamily assets
Commercial Property Drivers      
Commercial Occupancy at year-end 88% to 89% 87% to 89%  
SS Property Cash NOI
(excluding lease termination fees)
3% to 4% 0% to 3% • Assumes positive revenue growth
• Assumes ~8% y/y increase in operating expenses and real estate taxes inclusive of planned additional R&M work, partially offset by higher tenant expense reimbursements
Observatory Drivers      
Observatory NOI $96M to $100M $94M to $102M • Reflects average quarterly expenses of ~$9M

 

   Low   High 
Net Income (Loss) Attributable to Common Stockholders and the Operating Partnership  $0.27   $0.29 
Add:          
Impairment Charge   0.00    0.00 
Real Estate Depreciation & Amortization   0.67    0.67 
Less:          
Preferred Unit Distributions   0.02    0.02 
Gain on Disposal of Real Estate, net   0.04    0.04 
FFO Attributable to Common Stockholders and the Operating Partnership  $0.88   $0.90 
Add:          
Amortization of Below Market Ground Lease   0.03    0.03 
Interest Expense Associated with Property in Receivership   0.01    0.01 
Loss on Early Extinguishment of Debt   0.00    0.00 
Core FFO Attributable to Common Stockholders and the Operating Partnership  $0.92   $0.94 

 

The estimates set forth above may be subject to fluctuations as a result of several factors, including continued impacts of changes in the use of office space and remote work on our business and our market, our ability to complete planned capital improvements in line with budget, costs of integration of completed acquisitions, costs associated with future acquisitions or other transactions, straight-line rent adjustments and the amortization of above and below-market leases. There can be no assurance that the Company’s actual results will not differ materially from the estimates set forth above.

 

5

 

 

 

 

Investor Presentation Update

 

The Company has posted on the “Investors” section of ESRT’s website the latest investor presentation, which contains additional information on its businesses, financial condition and results of operations.

 

Webcast and Conference Call Details

 

Empire State Realty Trust, Inc. will host a webcast and conference call, open to the general public, on Tuesday, October 22, 2024 at 12:00 pm Eastern time.

 

The webcast will be accessible on the “Investors” section of ESRT’s website. To listen to the live webcast, go to the site at least five minutes prior to the scheduled start time in order to register and download and install any necessary audio software. The conference call can also be accessed by dialing 1-877-407-3982 for domestic callers or 1-201-493-6780 for international callers.

 

Starting shortly after the call until October 29, 2024, a replay of the webcast will be available on the Company’s website, and a dial-in replay will be available by dialing 1-844-512-2921 for domestic callers or 1-412-317-6671 for international callers. The passcode for this dial-in replay is 13741463.

 

The Supplemental Report and Investor Presentation are additional components of the quarterly earnings announcement and are now available on the “Investors” section of ESRT’s website.

 

The Company uses, and intends to continue to use, the “Investors” page of its website, which can be found at www.esrtreit.com, as a means to disclose material nonpublic information and to comply with its disclosure obligations under Regulation FD, including, without limitation, through the posting of investor presentations that may include material nonpublic information. Accordingly, investors should monitor the “Investors” page, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.

 

About Empire State Realty Trust

 

Empire State Realty Trust, Inc. (NYSE: ESRT) is a NYC-focused REIT that owns and operates a portfolio of modernized, amenitized, and well-located office, retail, and multifamily assets. ESRT’s flagship Empire State Building, the “World's Most Famous Building,” features its iconic Observatory that was declared the #1 Attraction in the World – and the #1 Attraction in the U.S. for the third consecutive year – in Tripadvisor’s 2024 Travelers’ Choice Awards: Best of the Best Things to Do. The Company is the recognized leader in energy efficiency and indoor environmental quality. As of September 30, 2024, ESRT’s portfolio is comprised of approximately 7.8 million rentable square feet of office space, 0.7 million rentable square feet of retail space and 732 residential units. More information about Empire State Realty Trust can be found at esrtreit.com and by following ESRT on Facebook, Instagram, TikTok, X, and LinkedIn.

 

 

 

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Forward-Looking Statements

 

This press release includes “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. For the avoidance of doubt, any projection, guidance, or similar estimation about the future or future results, performance or achievements is a forward-looking statement.

 

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).

 

Many important factors could cause our actual results, performance, achievements, and future events to differ materially from those set forth, implied, anticipated, expected, projected, assumed or contemplated in our forward-looking statements, including, among other things: (i) economic, market, political and social impact of, and uncertainty relating to, any catastrophic events, including pandemics, epidemics or other outbreaks of disease, climate-related risks such as 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 the Company; (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) a decline in Observatory visitors due to changes in domestic or international tourism, including due to health crises, geopolitical events, currency exchange rates, and/or competition from other observatories; (vii) defaults on, early terminations of, or non-renewal of, leases by tenants; (viii) increases in the Company’s borrowing costs as a result of changes in interest rates and other factors; (ix) declining real estate valuations and impairment charges; (x) termination of our ground leases; (xi) limitations on our ability to pay down, refinance, restructure or extend our indebtedness or borrow additional funds; (xii) decreased rental rates or increased vacancy rates; (xiii) difficulties in executing capital projects or development projects successfully or on the anticipated timeline or budget; (xiv) difficulties in identifying and completing acquisitions; (xv) impact of changes in governmental regulations, tax laws and rates and similar matters; (xvi) our failure to qualify as a REIT; (xvii) incurrence of taxable capital gain on disposition of an asset due to failure of compliance with a 1031 exchange program; (xviii) our disclosure controls and internal control over financial reporting, including any material weakness; and (xix) failure to achieve sustainability metrics and goals, including as a result of tenant collaboration, and impact of governmental regulation on our sustainability efforts. For a further discussion of these and other factors that could impact the company's future results, performance, or transactions, see the section entitled “Risk Factors” of our annual report on Form 10-K for the year ended December 31, 2023 and of our quarterly report on Form 10-Q for the quarter ended June 30, 2024 and any additional factors that may be contained in any filing we make with the SEC.

 

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While forward-looking statements reflect the Company's good faith beliefs, they do not guarantee future performance. Any forward-looking statement contained in this press release 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 press release, 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).

 

Contact: Investors and Media

Empire State Realty Trust Investor Relations

(212) 850-2678

IR@esrtreit.com

 

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Empire Start Realty Trust, Inc.

Condensed Consolidated Statements of Operations

(unaudited and amounts in thousands, except per share data)

 

   Three Months Ended September 30, 
   2024   2023 
Revenues          
Rental revenue  $153,117   $151,458 
Observatory revenue   39,382    37,562 
Lease termination fees   4,771     
Third-party management and other fees   271    268 
Other revenue and fees   2,058    2,238 
Total revenues   199,599    191,526 
Operating expenses          
Property operating expenses   45,954    42,817 
Ground rent expenses   2,331    2,331 
General and administrative expenses   18,372    16,012 
Observatory expenses   9,715    9,471 
Real estate taxes   31,982    32,014 
Depreciation and amortization   45,899    46,624 
Total operating expenses   154,253    149,269 
Total operating income   45,346    42,257 
Other income (expense):          
Interest income   6,960    4,462 
Interest expense   (27,408)   (25,382)
Interest expense associated with property in receivership   (1,922)    
Gain on disposition of properties   1,262     
Income before income taxes   24,238    21,337 
Income tax expense   (1,442)   (1,409)
Net income   22,796    19,928 
Net (income) loss attributable to non-controlling interests:          
Non-controlling interest in the Operating Partnership   (8,205)   (7,207)
Non-controlling interests in other partnerships       (111)
Preferred unit distributions   (1,050)   (1,050)
Net income attributable to common stockholders  $13,541   $11,560 
Total weighted average shares          
Basic   164,880    161,851 
Diluted   269,613    266,073 
Earnings per share attributable to common stockholders          
Basic  $0.08   $0.07 
Diluted  $0.08   $0.07 

 

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Empire Start Realty Trust, Inc.

Condensed Consolidated Statements of Operations

(unaudited and amounts in thousands, except per share data)

 

   Nine Months Ended September 30, 
   2024   2023 
Revenues          
Rental revenue  $459,469   $446,152 
Observatory revenue   98,102    93,149 
Lease termination fees   4,771     
Third-party management and other fees   912    1,076 
Other revenue and fees   7,067    6,313 
Total revenues   570,321    546,690 
Operating expenses          
Property operating expenses   132,530    124,380 
Ground rent expenses   6,994    6,994 
General and administrative expenses   52,364    47,795 
Observatory expenses   27,104    25,983 
Real estate taxes   96,106    95,292 
Depreciation and amortization   139,453    140,312 
Total operating expenses   454,551    440,756 
Total operating income   115,770    105,934 
Other income (expense):          
Interest income   16,230    10,396 
Interest expense   (77,859)   (76,091)
Interest expense associated with property in receivership   (2,550)    
Loss on early extinguishment of debt   (553)    
Gain on disposition of properties   12,065    29,261 
Income before income taxes   63,103    69,500 
Income tax expense   (1,537)   (923)
Net income   61,566    68,577 
Net (income) loss attributable to non-controlling interests:          
Non-controlling interest in the Operating Partnership   (22,138)   (25,424)
Non-controlling interests in other partnerships   (4)   (69)
Preferred unit distributions   (3,151)   (3,151)
Net income attributable to common stockholders  $36,273   $39,933 
Total weighted average shares          
Basic   164,453    160,799 
Diluted   268,608    265,269 
Earnings per share attributable to common stockholders          
Basic  $0.22   $0.25 
Diluted  $0.22   $0.25 

 

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Empire State Realty Trust, Inc.

Reconciliation of Net Income to Funds From Operations (“FFO”),

Modified Funds From Operations (“Modified FFO”) and Core Funds From Operations (“Core FFO”)

(unaudited and amounts in thousands, except per share data)

 

   Three Months Ended September 30, 
   2024   2023 
Net income  $22,796   $19,928 
Non-controlling interests in other partnerships       (111)
Preferred unit distributions   (1,050)   (1,050)
Real estate depreciation and amortization   44,871    45,174 
Gain on disposition of properties   (1,262)    
FFO attributable to common stockholders and Operating Partnership units   65,355    63,941 
           
Amortization of below-market ground leases   1,958    1,957 
Modified FFO attributable to common stockholders and Operating Partnership units   67,313    65,898 
           
Interest expense associated with property in receivership   1,922     
Core FFO attributable to common stockholders and Operating Partnership units  $69,235   $65,898 
           
Total weighted average shares and Operating Partnership units          
Basic   264,787    262,756 
Diluted   269,613    266,073 
           
FFO per share          
Basic  $0.25   $0.24 
Diluted  $0.24   $0.24 
           
Modified FFO per share          
Basic  $0.25   $0.25 
Diluted  $0.25   $0.25 
           
Core FFO per share          
Basic  $0.26   $0.25 
Diluted  $0.26   $0.25 

 

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Empire State Realty Trust, Inc.

Reconciliation of Net Income to Funds From Operations (“FFO”),

Modified Funds From Operations (“Modified FFO”) and Core Funds From Operations (“Core FFO”)

(unaudited and amounts in thousands, except per share data)

 

   Nine Months Ended September 30, 
   2024   2023 
Net income  $61,566   $68,577 
Non-controlling interests in other partnerships   (4)   (69)
Preferred unit distributions   (3,151)   (3,151)
Real estate depreciation and amortization   136,126    136,085 
Gain on disposition of properties   (12,065)   (29,261)
FFO attributable to common stockholders and Operating Partnership units   182,472    172,181 
           
Amortization of below-market ground leases   5,874    5,873 
Modified FFO attributable to common stockholders and Operating Partnership units   188,346    178,054 
           
Interest expense associated with property in receivership   2,550     
Loss on early extinguishment of debt   553     
Core FFO attributable to common stockholders and Operating Partnership units  $191,449   $178,054 
           
Total weighted average shares and Operating Partnership units          
Basic   264,675    263,379 
Diluted   268,608    265,269 
           
FFO per share          
Basic  $0.69   $0.65 
Diluted  $0.68   $0.65 
           
Modified FFO per share          
Basic  $0.71   $0.68 
Diluted  $0.70   $0.67 
           
Core FFO per share          
Basic  $0.72   $0.68 
Diluted  $0.71   $0.67 

 

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Empire State Realty Trust, Inc.

Condensed Consolidated Balance Sheets

(unaudited and amounts in thousands)

 

   September 30, 2024   December 31, 2023 
Assets          
Commercial real estate properties, at cost  $3,667,687   $3,655,192 
Less: accumulated depreciation   (1,241,454)   (1,250,062)
Commercial real estate properties, net   2,426,233    2,405,130 
Contract asset2   168,687     
Cash and cash equivalents   421,896    346,620 
Restricted cash   48,023    60,336 
Tenant and other receivables   34,068    39,836 
Deferred rent receivables   244,448    255,628 
Prepaid expenses and other assets   81,758    98,167 
Deferred costs, net   176,720    172,457 
Acquired below market ground leases, net   315,368    321,241 
Right of use assets   28,257    28,439 
Goodwill   491,479    491,479 
Total assets  $4,436,937   $4,219,333 
           
Liabilities and equity          
Mortgage notes payable, net  $692,989   $877,388 
Senior unsecured notes, net   1,196,911    973,872 
Unsecured term loan facility, net   268,655    389,286 
Unsecured revolving credit facility   120,000     
Debt associated with property in receivership   177,667     
Accrued interest associated with property in receivership   3,511     
Accounts payable and accrued expenses   81,443    99,756 
Acquired below market leases, net   14,702    13,750 
Ground lease liabilities   28,257    28,439 
Deferred revenue and other liabilities   70,766    70,298 
Tenants’ security deposits   24,715    35,499 
Total liabilities   2,679,616    2,488,288 
Total equity   1,757,321    1,731,045 
Total liabilities and equity  $4,436,937   $4,219,333 

 

2 This contract asset represents the amount of obligation we expect to be released upon the final resolution of the foreclosure process on First Stamford Place.

 

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Exhibit 99.2

A group of people standing on escalator

Description automatically generated 

 

 

 

 

Third Quarter 2024

 

Table of Contents  Page 
Summary    
Supplemental Definitions  3 
Company Profile  5 
Condensed Consolidated Balance Sheets  6 
Condensed Consolidated Statements of Operations  7 
Highlights  8 
Selected Property Data    
Property Summary Net Operating Income  9 
Same Store Net Operating Income ("NOI"), Initial Cash Rent Contributing to Cash NOI  10 
Leasing Activity  11 
Commercial Property Detail  13 
Portfolio Expirations and Vacates Summary  14 
Tenant Lease Expirations  15 
Largest Tenants and Portfolio Tenant Diversification by Industry  17 
Capital Expenditures and Redevelopment Program  18 
Observatory Summary  19 
Financial information    
FFO, Modified FFO, Core FFO, FAD and EBITDA  20 
Consolidated Debt Analysis    
Debt Summary  21 
Debt Detail  22 
Debt Maturities  23 
Ground Leases  23 

 

Forward-looking Statements

 

This presentation includes “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. For the avoidance of doubt, any projection, guidance, or similar estimation about the future or future results, performance or achievements is a forward-looking statement.

 

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).

 

Many important factors could cause our actual results, performance, achievements, and future events to differ materially from those set forth, implied, anticipated, expected, projected, assumed or contemplated in our forward-looking statements, including, among other things: (i) economic, market, political and social impact of, and uncertainty relating to, any catastrophic events, including pandemics, epidemics or other outbreaks of disease, climate-related risks such as 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 the Company; (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) a decline in Observatory visitors due to changes in domestic or international tourism, including due to health crises, geopolitical events, currency exchange rates, and/or competition from other observatories; (vii) defaults on, early terminations of, or non-renewal of, leases by tenants; (viii) increases in the Company’s borrowing costs as a result of changes in interest rates and other factors; (ix) declining real estate valuations and impairment charges; (x) termination of our ground leases; (xi) limitations on our ability to pay down, refinance, restructure or extend our indebtedness or borrow additional funds; (xii) decreased rental rates or increased vacancy rates; (xiii) difficulties in executing capital projects or development projects successfully or on the anticipated timeline or budget; (xiv) difficulties in identifying and completing acquisitions; (xv) impact of changes in governmental regulations, tax laws and rates and similar matters; (xvi) our failure to qualify as a REIT; (xvii) incurrence of taxable capital gain on disposition of an asset due to failure of compliance with a 1031 exchange program; (xviii) our disclosure controls and internal control over financial reporting, including any material weakness; and (xix) failure to achieve sustainability metrics and goals, including as a result of tenant collaboration, and impact of governmental regulation on our sustainability efforts. For a further discussion of these and other factors that could impact the company's future results, performance, or transactions, see the section entitled “Risk Factors” of our annual report on Form 10-K for the year ended December 31, 2023 and of our quarterly report on Form 10-Q for the quarter ended June 30, 2024 and any additional factors that may be contained in any filing we make with the U.S. Securities and Exchange Commission.

 

While forward-looking statements reflect the Company's good faith beliefs, they do not guarantee future performance. Any forward-looking statement contained in this presentation 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 presentation, 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).

 

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Third Quarter 2024
Supplemental Definitions

 

Funds From Operations ("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")

 

Core FFO adds back to Modified FFO the following items: loss on early extinguishment of debt, acquisition expenses, severance expenses, IPO litigation expense and interest expense associated with property in receivership. The Company believes Core FFO is an important supplemental measure of its operating performance because it excludes 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.

 

Core Funds Available for Distribution ("Core FAD")

 

In addition to Core FFO, we present Core FAD by (i) adding to Core FFO non-real estate depreciation and amortization, the amortization of deferred financing costs, amortization of debt discounts and non-cash compensation expenses and (ii) deducting straight-line rent, amortization of debt premiums and above/below market rent revenue, and recurring capital improvements such as second generation leasing commissions, tenant improvements, prebuilts, capital expenditures and furniture, fixtures & equipment. Core FAD is presented solely as a supplemental disclosure that we believe provides useful information regarding our ability to fund our dividends. Core FAD 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 FAD is not indicative of cash available to fund ongoing cash needs, including the ability to make cash distributions. There can be no assurance that Core FAD presented by us is comparable to similarly titled measures of other REITs.

 

Net Operating Income ("NOI") and Property Cash 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, impairment charges 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. The cost of funds is eliminated 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. In some cases, the Company also presents (1) Property Cash NOI, which excludes Observatory NOI and the effects of straight-line rent, fair value lease revenue, and straight-line ground rent expense adjustment, and (2) Property Cash NOI excluding lease termination fees. Property Cash NOI is presented solely as a supplemental disclosure that management believes allows investors to compare NOI performance across periods without taking into account the effect of certain non-cash rental revenues and straight-line ground rent expense adjustment. Similar to depreciation and amortization expense, fair value lease revenues, because of historical cost accounting, may distort operating performance measures at the property level. Additionally, presenting NOI excluding the impact of straight-line rent and straight-line ground rent expense adjustment provides investors with an alternative view of operating performance at the property level that more closely reflects net cash generated in the portfolio. Presenting Property Cash NOI excluding lease termination fees provides investors with additional information that allows them to compare operating performance between periods without taking into account termination fees, which can distort the results for any given period because they generally represent multiple months or years of a tenant’s rental obligations that are paid in a lump sum in connection with a negotiated early termination of the tenant’s lease and are not reflective of the core ongoing operating performance of the Company’s portfolio. However, the usefulness of NOI, Property Cash NOI, and Property Cash NOI excluding lease termination fees 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 and Property Cash NOI may fail to capture significant trends in these components of net income which further limits its usefulness. NOI and Property Cash NOI are measurements of the operating performance of our properties but do not measure our performance as a whole. These metrics therefore are not substitutes for net income as computed in accordance with GAAP. These measures should be analyzed in conjunction with net income computed in accordance with GAAP. Other companies may use different methods for calculating NOI, Property Cash NOI or similarly titled measures and, accordingly, our measures may not be comparable to similarly titled measures reported by other companies that do not define the measure exactly as we do.

 

Same Store

 

In the Company’s analysis of NOI, particularly to make comparisons of NOI between periods meaningful, it is important to provide information for properties that were owned by the Company throughout each period presented. The Company refers to properties acquired prior to the beginning of the earliest period presented and owned by the Company through the end of the latest period presented as “Same Store”. Same Store therefore excludes properties acquired after the beginning of the earliest period presented or disposed of prior to the end of the latest period presented. Accordingly, it takes at least one year and one quarter after a property is acquired for that property to be included in Same Store. The Company’s definition of Same Store also excludes properties held-for-sale or those which we otherwise expect to dispose of in the subsequent quarter, properties placed in receivership, and our multifamily properties. For mixed-use properties, all same store property NOI is represented in the property category that comprises the majority of that mixed-use property's NOI. As of September 30, 2024, Same Store excludes the North Sixth Street Collection which was acquired in September 2023 and September 2024, and First Stamford Place, Stamford, CT which was placed into receivership in May 2024.

 

Page 3

 

 

Third Quarter 2024
Supplemental Definitions

 

EBITDA and Adjusted EBITDA

 

We compute EBITDA as net income plus interest expense, interest expense associated with property in receivership, income taxes and depreciation and amortization. We present EBITDA because we believe that EBITDA, along with cash flow from operating activities, investing activities and financing activities, provides investors with an additional indicator of its ability to incur and service debt. EBITDA should not be considered as an alternative to net income (determined in accordance with GAAP), as an indication of our financial performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP), or as a measure of its liquidity. For Adjusted EBITDA, we add back impairment charges and (gain) loss on disposition of property.

 

Net Debt to Adjusted EBITDA

 

We compute Net Debt to Adjusted EBITDA as the Company’s pro-rata share of gross debt less cash and cash equivalents divided by the Company’s pro-rata share of trailing twelve months Adjusted EBITDA. The Company believes that the presentation of Net Debt to Adjusted EBITDA provides useful information to investors because the Company reviews Net Debt to Adjusted EBITDA as part of the management of its overall financial flexibility, capital structure and leverage based on its percentage ownership interest in all of its assets.

 

Page 4

 

 

Third Quarter 2024

 

COMPANY PROFILE

 

Empire State Realty Trust, Inc. (NYSE: ESRT) is a NYC-focused REIT that owns and operates a portfolio of modernized, amenitized, and well-located office, retail, and multifamily assets. ESRT’s flagship Empire State Building, the “World's Most Famous Building,” features its iconic Observatory that was declared the #1 Attraction in the World - and the #1 Attraction in the U.S. for the third consecutive year – in Tripadvisor’s 2024 Travelers’ Choice Awards: Best of the Best Things to Do. The Company is the recognized leader in energy efficiency and indoor environmental quality.

 

BOARD OF DIRECTORS

 

Anthony E. Malkin Chairman and Chief Executive Officer
Thomas J. DeRosa Director, Chair of the Compensation and Human Capital Committee
Steven J. Gilbert Director, Lead Independent Director
S. Michael Giliberto Director, Chair of the Audit Committee
Patricia S. Han Director
Grant H. Hill Director
R. Paige Hood Director, Chair of the Finance Committee
James D. Robinson IV Director, Chair of the Nominating and Corporate Governance Committee
Christina Van Tassell Director
Hannah Yang Director

 

EXECUTIVE MANAGEMENT

 

Anthony E. Malkin Chairman and Chief Executive Officer
Christina Chiu President
Thomas P. Durels Executive Vice President, Real Estate
Steve Horn Executive Vice President, Chief Financial Officer & Chief Accounting Officer

 

COMPANY INFORMATION

 

Corporate Headquarters Investor Relations New York Stock Exchange
111 West 33rd Street, 12th Floor IR@esrtreit.com Trading Symbol: ESRT
New York, NY 10120    
www.esrtreit.com    
(212) 687-8700    

 

RESEARCH COVERAGE

 

Bank of America Merrill Lynch Jeff Spector (646) 855-1363 jeff.spector@bofa.com
BMO Capital Markets Corp. John Kim (212) 885-4115 jp.kim@bmo.com
BTIG Thomas Catherwood (212) 738-6140 tcatherwood@btig.com
Citi Michael Griffin (212) 816-5871 michael.a.griffin@citi.com
Evercore ISI Steve Sakwa (212) 446-9462 steve.sakwa@evercoreisi.com
Green Street Advisors Dylan Burzinski (949) 640-8780 dburzinski@greenstreetadvisors.com
KeyBanc Capital Markets Todd Thomas (917) 368-2286 tthomas@key.com
Wells Fargo Securities, LLC Blaine Heck (443) 263-6529 blaine.heck@wellsfargo.com
Wolfe Research Andrew Rosivach (646) 582-9251 arosivach@wolferesearch.com

 

Page 5

 

 

Third Quarter 2024
Condensed Consolidated Balance Sheets
(unaudited and dollars in thousands)

 

  September 30,
2024
   June 30,
2024
   March 31,
2024
   December 31,
2023
   September 30,
2023
 
Assets                    
Commercial real estate properties, at cost  $3,667,687   $3,503,302   $3,702,317   $3,655,192   $3,620,097 
Less: accumulated depreciation   (1,241,454)   (1,206,039)   (1,288,519)   (1,250,062)   (1,217,967)
Commercial real estate properties, net   2,426,233    2,297,263    2,413,798    2,405,130    2,402,130 
Contract asset(1)   168,687    166,955    -    -    - 
Cash and cash equivalents   421,896    535,533    333,573    346,620    353,999 
Restricted cash   48,023    41,015    51,738    60,336    66,954 
Tenant and other receivables   34,068    34,665    40,137    39,836    37,651 
Deferred rent receivables   244,448    242,940    257,266    255,628    254,233 
Prepaid expenses and other assets   81,758    105,438    74,472    98,167    82,918 
Deferred costs, net   176,720    172,318    180,462    172,457    175,488 
Acquired below-market ground leases, net   315,368    317,326    319,284    321,241    323,199 
Right of use assets   28,257    28,318    28,378    28,439    28,496 
Goodwill   491,479    491,479    491,479    491,479    491,479 
Total assets  $4,436,937   $4,433,250   $4,190,587   $4,219,333   $4,216,547 
                          
Liabilities and Equity                         
Mortgage notes payable, net  $692,989   $700,348   $876,497   $877,388   $878,757 
Senior unsecured notes, net   1,196,911    1,196,831    973,926    973,872    973,819 
Unsecured term loan facility, net   268,655    268,580    268,503    389,286    389,158 
Unsecured revolving credit facility   120,000    120,000    120,000    -    - 
Debt associated with property in receivership   177,667    177,667    -    -    - 
Accrued interest associated with property in receivership   3,511    1,589    -    -    - 
Accounts payable and accrued expenses   81,443    90,908    91,005    99,756    83,299 
Acquired below-market leases, net   14,702    11,872    12,798    13,750    14,703 
Ground lease liabilities   28,257    28,318    28,378    28,439    28,496 
Deferred revenue and other liabilities   70,766    61,890    69,289    70,298    75,688 
Tenants' security deposits   24,715    24,031    25,457    35,499    39,307 
Total liabilities   2,679,616    2,682,034    2,465,853    2,488,288    2,483,227 
Total equity   1,757,321    1,751,216    1,724,734    1,731,045    1,733,320 
Total liabilities and equity  $4,436,937   $4,433,250   $4,190,587   $4,219,333   $4,216,547 

 

(1) This contract asset represents the amount of obligation we expect to be released upon the final resolution of the foreclosure process on First Stamford Place.

 

Page 6

 

 

 

Third Quarter 2024
Condensed Consolidated Statements of Operations
(unaudited and in thousands, except per share amounts)

 

   Three Months Ended 
   September 30,
2024
   June 30,
2024
   March 31,
2024
   December 31,
2023
   September 30,
2023
 
Revenues                         
Rental revenue (1)  $153,117   $152,470   $153,882   $151,167   $151,458 
Observatory revenue   39,382    34,124    24,596    36,217    37,562 
Lease termination fees   4,771    -    -    -    - 
Third-party management and other fees   271    376    265    275    268 
Other revenue and fees   2,058    2,573    2,436    5,223    2,238 
Total revenues   199,599    189,543    181,179    192,882    191,526 
                          
Operating expenses                         
Property operating expenses   45,954    41,516    45,060    42,944    42,817 
Ground rent expenses   2,331    2,332    2,331    2,332    2,331 
General and administrative expenses   18,372    18,020    15,972    16,144    16,012 
Observatory expenses   9,715    8,958    8,431    9,282    9,471 
Real estate taxes   31,982    31,883    32,241    31,809    32,014 
Depreciation and amortization   45,899    47,473    46,081    49,599    46,624 
Total operating expenses   154,253    150,182    150,116    152,110    149,269 
Total operating income   45,346    39,361    31,063    40,772    42,257 
                          
Other income (expense)                         
Interest income   6,960    5,092    4,178    4,740    4,462 
Interest expense   (27,408)   (25,323)   (25,128)   (25,393)   (25,382)
Interest expense associated with property in receivership   (1,922)   (628)   -    -    - 
Loss on early extinguishment of debt   -    -    (553)   -    - 
Gain (loss) on disposition of property   1,262    10,803    -    (2,497)   - 
Income before income taxes   24,238    29,305    9,560    17,622    21,337 
Income tax (expense) benefit   (1,442)   (750)   655    (1,792)   (1,409)
Net income   22,796    28,555    10,215    15,830    19,928 
Net (income) loss attributable to noncontrolling interests:                         
Non-controlling interests in the Operating Partnership   (8,205)   (10,433)   (3,500)   (5,670)   (7,207)
Non-controlling interests in other partnerships   -    -    (4)   1    (111)
Private perpetual preferred unit distributions   (1,050)   (1,051)   (1,050)   (1,050)   (1,050)
Net income attributable to common stockholders  $13,541   $17,071   $5,661   $9,111   $11,560 
                          
Weighted average common shares outstanding                         
Basic   164,880    164,277    163,491    161,974    161,851 
Diluted   269,613    268,716    267,494    267,003    266,073 
                          
Earnings per share attributable to common stockholders                         
                          
Basic and diluted  $0.08   $0.10   $0.03   $0.06   $0.07 
                          
Dividends per share  $0.035   $0.035   $0.035   $0.035   $0.035 

 

Note:

(1)The following table reflects the components of rental revenue.

 

   Three Months Ended 
Rental Revenue  September 30,
2024
   June 30,
2024
   March 31,
2024
   December 31,
2023
   September 30,
2023
 
Base rent  $132,492   $136,328   $136,557   $134,467   $133,228 
Billed tenant expense reimbursement   20,625    16,142    17,325    16,700    18,230 
Total rental revenue  $153,117   $152,470   $153,882   $151,167   $151,458 

 

The preceding table of the components of rental revenue is not, and is not intended to be, a presentation in accordance with GAAP. The Company believes this information is frequently used by management, investors, securities analysts and other interested parties to evaluate the Company’s performance.

 

Page 7

 

 

Third Quarter 2024
Highlights
(unaudited and dollars and shares in thousands, except per share amounts)

 

   Three Months Ended 
   September 30,
2024
   June 30,
2024
   March 31,
2024
   December 31,
2023
   September 30,
2023
 
Office and Retail Metrics:                    
Total rentable square footage   8,592,481    8,549,496    9,332,569    9,359,219    9,361,656 
Percent occupied (1)   88.8%   88.5%   87.6%   86.3%   87.0%
Percent leased (2)   93.0%   92.6%   91.1%   90.6%   90.5%
                          
Same Store Property Cash Net Operating Income (NOI):                         
Manhattan office portfolio  $69,840   $67,165   $63,911   $66,897   $61,985 
Greater New York office portfolio   1,651    1,825    1,383    1,711    1,981 
Retail portfolio   2,431    2,517    1,542    1,791    1,752 
Total Same Store Property Cash NOI  $73,922   $71,507   $66,836   $70,399   $65,718 
                          
Multifamily Metrics:                         
Multifamily Cash NOI (3)  $4,506   $4,533   $4,217   $4,032   $4,837 
Total number of units (4)   732    727    727    727    727 
Percent occupied (4)   96.8%   97.9%   97.1%   98.1%   97.1%
                          
Observatory Metrics:                         
Observatory NOI  $29,667   $25,166   $16,165   $26,935   $28,091 
Number of visitors (5)   727,000    648,000    485,000    711,000    743,000 
Change in visitors year-over-year   (2.2)%   (2.7)%   9.5%   7.7%   8.2%
                          
Ratios at ESRT pro-rata share: (3)                         
Debt to Total Market Capitalization (6)   42.3%   46.4%   44.1%   45.2%   49.7%
Net Debt to Total Market Capitalization (6)   37.5%   39.9%   40.2%   41.1%   45.4%
Debt and Perpetual Preferred Units to Total Market Capitalization (6)   44.0%   48.2%   45.8%   47.0%   51.7%
Net Debt and Perpetual Preferred Units to Total Market Capitalization (6)   39.3%   41.9%   42.0%   43.0%   47.6%
Debt to Adjusted EBITDA (7)   6.4x   6.6x   6.2x   6.4x   6.6x
Net Debt to Adjusted EBITDA (7)   5.2x   5.1x   5.3x   5.4x   5.5x
Core FFO Payout Ratio (8)   14%   15%   17%   14%   14%
Core FAD Payout Ratio (9)   21%   30%   109%   35%   23%
Core FFO per share - diluted  $0.26   $0.24   $0.21   $0.25   $0.25 
Diluted weighted average shares   269,613    268,716    267,494    267,003    266,073 
                          
Class A common stock price at quarter end  $11.08   $9.38   $10.13   $9.69   $8.04 
Dividends declared and paid per share  $0.035   $0.035   $0.035   $0.035   $0.035 
Dividends per share - annualized  $0.14   $0.14   $0.14   $0.14   $0.14 
Dividend yield (10)   1.3%   1.5%   1.4%   1.4%   1.7%
Series 2013 Private Perpetual Preferred Units outstanding ($16.62 liquidation value)   1,560    1,560    1,560    1,560    1,560 
Series 2019 Private Perpetual Preferred Units outstanding ($13.52 liquidation value)   4,664    4,664    4,664    4,664    4,664 
Class A common stock   165,507    164,483    163,816    162,062    161,346 
Class B common stock (11)   981    982    982    984    987 
Operating partnership units   107,664    108,713    109,218    107,900    108,618 
Total common stock and operating partnership units outstanding (12)   274,152    274,178    274,016    270,946    270,951 

 

Notes:

(1)Based on leases signed and commenced as of end of period.
(2)Represents occupancy and includes signed leases not commenced.
(3)On March 28, 2024, ESRT acquired the non-controlling interest in its other partnerships. The Multifamily Cash NOI presented here reflects ESRT’s pro-rata 90% for the periods prior to this acquisition. Historical ratios remain unchanged, and September 30, 2024, June 30, 2024 and March 31, 2024 debt ratios reflect ESRT’s 100% share of debt and Adjusted EBITDA.
(4)Multifamily percent occupied excludes 20 units held offline in connection with an application for the extension of the New York State Real Property Tax Law 421-a Program at one of our multifamily properties. Total number of units disclosed does not have this exclusion.
(5)Reflects the number of visitors who pass through the turnstile, excluding visitors who make a second visit on the same ticket at no additional charge.
(6)Market capitalization represents the sum of (i) Company’s common stock per share price as of September 30, 2024 multiplied by the total outstanding number of shares of   common stock and operating partnership units as of September 30, 2024; (ii) the number of Series 2014 perpetual preferred units at September 30, 2024 multiplied by $16.62, (iii) the number of Series 2019 perpetual preferred units at September 30, 2024 multiplied by $13.52, and (iv) our outstanding indebtedness as of September 30, 2024.
(7)Calculated based on trailing 12 months Adjusted EBITDA. For the periods ended September 30, 2024 and June 30, 2024 excludes trailing 12 months Adjusted EBITDA of $9 million and $12 million, respectively, relating to First Stamford Place, Stamford CT, which was placed into receivership at the end of May 2024.
(8)Represents the amount of Core FFO paid out in distributions.
(9)Beginning in the three months ended December 31, 2023, we have eliminated a deduction of other non-recurring capital improvements from Core FFO to arrive at Core FAD and the related Core FAD Payout Ratio. We made this modification above to the calculation of Core FAD Payout Ratio for the other periods presented; in our previous supplemental reports prior to this change, the Core FAD Payout Ratios was 27% for the three months ended September 30, 2023.
(10)Based on the closing price per share of Class A common stock on September 30, 2024.
(11)We have two classes of common stock as a means to give our 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 Class B share, and such Class B share carries 50 votes to the extent such holder continnues to hold 49 OP units for every Class B share.
(12)Represents fully diluted common stock and operating partnership units as it includes unvested restricted stock and unvested LTIP units.

 

Page 8

 

 

Third Quarter 2024
Property Summary -  Same Store Net Operating Income (“NOI”) by Quarter
(unaudited and dollars in thousands)

 

   Three Months Ended 
   September 30,
2024
   June 30,
2024
   March 31,
2024
   December 31,
2023
   September 30,
2023
 
Same Store Portfolio(1)                         
Revenues  $145,501   $140,763   $140,147   $139,865   $137,854 
Operating expenses   (75,596)   (68,762)   (71,486)   (68,923)   (69,574)
Same store property NOI   69,905    72,001    68,661    70,942    68,280 
Straight-line rent   (2,184)   (1,887)   (3,218)   (1,967)   (3,924)
Above/below-market rent revenue amortization   (528)   (565)   (565)   (534)   (595)
Below-market ground lease amortization   1,958    1,958    1,958    1,958    1,957 
Total same store property cash NOI - excluding lease termination fees  $69,151   $71,507   $66,836   $70,399   $65,718 
                          
Percent change over prior year   5.2%   7.4%   12.3%   11.3%   8.8%
                          
Total same store property cash NOI - excluding lease termination fees  $69,151   $71,507   $66,836   $70,399   $65,718 
Lease termination fees   4,771    -    -    -    - 
Total same store property cash NOI  $73,922   $71,507   $66,836   $70,399   $65,718 
                          
Same Store Manhattan Office(1), (2)                         
Revenues  $138,060   $133,180   $133,919   $133,207   $130,888 
Operating expenses   (72,287)   (65,473)   (68,173)   (65,750)   (66,294)
Same store property NOI   65,773    67,707    65,746    67,457    64,594 
Straight-line rent   (2,134)   (1,935)   (3,228)   (1,984)   (3,971)
Above/below-market rent revenue amortization   (528)   (565)   (565)   (534)   (595)
Below-market ground lease amortization   1,958    1,958    1,958    1,958    1,957 
Total same store property cash NOI - excluding lease termination fees   65,069    67,165    63,911    66,897    61,985 
Lease termination fees   4,771    -    -    -    - 
Total same store property cash NOI  $69,840   $67,165   $63,911   $66,897   $61,985 
                          
Same Store Greater New York Metropolitan Area Office(1)                         
Revenues  $3,060   $3,319   $2,844   $3,072   $3,425 
Operating expenses   (1,612)   (1,656)   (1,594)   (1,504)   (1,627)
Same store property NOI   1,448    1,663    1,250    1,568    1,798 
Straight-line rent   203    162    133    143    183 
Above/below-market rent revenue amortization   -    -    -    -    - 
Below-market ground lease amortization   -    -    -    -    - 
Total same store property cash NOI - excluding lease termination fees   1,651    1,825    1,383    1,711    1,981 
Lease termination fees   -    -    -    -    - 
Total same store property cash NOI  $1,651   $1,825   $1,383   $1,711   $1,981 
                          
Same Store Retail(1)                         
Revenues  $4,381   $4,264   $3,384   $3,586   $3,541 
Operating expenses   (1,697)   (1,633)   (1,719)   (1,669)   (1,653)
Same store property NOI   2,684    2,631    1,665    1,917    1,888 
Straight-line rent   (253)   (114)   (123)   (126)   (136)
Above/below-market rent revenue amortization   -    -    -    -    - 
Below-market ground lease amortization   -    -    -    -    - 
Total same store property cash NOI - excluding lease termination fees   2,431    2,517    1,542    1,791    1,752 
Lease termination fees   -    -    -    -    - 
Total same store property cash NOI  $2,431   $2,517   $1,542   $1,791   $1,752 

 

Notes:

(1)Revenues include the same-store portion of Rental revenue and Other revenue and fees. Operating expenses include the same-store portion of Property operating expenses, Ground rent expenses, and Real estate taxes.
(2)Includes 475,744 rentable square feet of retail space in the Company’s nine Manhattan office properties.

 

Page 9

 

 

Third Quarter 2024
Same Store Net Operating Income (“NOI”), Initial Cash Rent Contributing to Cash NOI
(unaudited and dollars in thousands)

 

   Three Months Ended 
   September 30,
 2024
   June 30,
 2024
   March 31,
 2024
   December 31,
2023
   September 30,
2023
 
Reconciliation of Net Income to Cash NOI and Same Store Cash NOI                    
Net income  $22,796   $28,555   $10,215   $15,830   $19,928 
Add:                         
General and administrative expenses   18,372    18,020    15,972    16,144    16,012 
Depreciation and amortization   45,899    47,473    46,081    49,599    46,624 
Interest expense   27,408    25,323    25,128    25,393    25,382 
Interest expense associated with property in receivership   1,922    628    -    -    - 
Loss on early extinguishment of debt   -    -    553    -    - 
Income tax expense (benefit)   1,442    750    (655)   1,792    1,409 
Less:                         
(Gain) loss on disposition of property   (1,262)   (10,803)   -    2,497    - 
Third-party management and other fees   (271)   (376)   (265)   (275)   (268)
Interest income   (6,960)   (5,092)   (4,178)   (4,740)   (4,462)
Net operating income   109,346    104,478    92,851    106,240    104,625 
                          
Straight-line rent   (2,277)   (1,900)   (3,061)   (2,133)   (5,015)
Above/below-market rent revenue amortization   (476)   (513)   (514)   (483)   (554)
Below-market ground lease amortization   1,958    1,958    1,958    1,958    1,957 
Total cash NOI - including Observatory and lease termination fees   108,551    104,023    91,234    105,582    101,013 
Less: Observatory NOI   (29,667)   (25,166)   (16,165)   (26,935)   (28,091)
Less: cash NOI from non-Same Store properties   (4,962)   (7,350)   (8,233)   (8,248)   (7,204)
Total Same Store property cash NOI - including  lease termination fees   73,922    71,507    66,836    70,399    65,718 
Less: Lease termination fees   (4,771)   -    -    -    - 
Total Same Store property cash NOI - excluding Observatory and lease termination fees  $69,151   $71,507   $66,836   $70,399   $65,718 
                          
Multifamily NOI(1)                         
Revenues  $9,140   $9,161   $8,472   $8,345   $8,581 
Operating expenses   (4,623)   (4,578)   (4,209)   (4,268)   (3,683)
NOI   4,517    4,583    4,263    4,077    4,898 
Straight-line rent   (69)   (109)   (102)   (102)   (103)
Above/below-market rent revenue amortization   58    59    56    57    42 
Cash NOI  $4,506   $4,533   $4,217   $4,032   $4,837 

 

Initial Cash Rent Contributing to Cash NOI in the Following Years From Burn-off of Free Rent and Signed Leases not Commenced (2)

 

       Initial                     
   Square   Annual   Initial Cash Rent Contributing to Cash NOI in the Following Years 
Expected Cash Commencement  Feet   Cash Rent   2024   2025   2026   2027   2028 
Fourth quarter 2024   90,065   $4,661   $362   $4,661   $4,661   $4,541   $3,866 
First quarter 2025   97,780    6,113    -    4,491    5,295    5,295    5,295 
Second quarter 2025   128,014    8,275    -    5,188    8,275    8,275    8,275 
Third quarter 2025   69,029    3,918    -    1,180    3,918    3,918    3,918 
Fourth quarter 2025   51,526    4,722    -    389    4,722    4,722    4,722 
First quarter 2026   35,862    2,199    -    -    2,061    2,199    2,199 
Second quarter 2026   141,240    9,779    -    -    6,514    9,779    9,779 
Third quarter 2026   32,028    5,739    -    -    1,258    2,508    2,508 
Fourth quarter 2026   119,981    4,275    -    -    1,535    7,507    7,507 
Second quarter 2027   9,030    677    -    -    -    453    677 
First quarter 2028   25,132    1,784    -    -    -    -    1,784 
    799,687   $52,142   $362   $15,909   $38,239   $49,197   $50,530 

 

   Incremental   Initial                     
   Annual   Annual   Initial Cash Rent Contributing to Cash NOI in the Following Years 
3Q 2024  Cash Rent (3)   Cash Rent   2024   2025   2026   2027   2028 
Commenced leases in free rent period  $20,470   $21,517   $362   $12,581   $18,300   $20,578   $19,903 
Signed leases not commenced   24,080    30,625    -    3,328    19,939    28,619    30,627 
   $44,550   $52,142   $362   $15,909   $38,239   $49,197   $50,530 

 

Notes:

(1)On March 28, 2024 we acquired the non-controlling interest in ESRT’s joint venture properties. Beginning in the three months ended June 30, 2024, Multifamily NOI figures are presented at 100% ownership. Prior periods disclose ESRT’s pro-rata 90% share.
(2)Excludes signed leases not commenced and commenced leases in free rent period at our First Stamford Place property.
(3)Reflects initial annual cash rent less annual cash rent from existing tenant in the space.

 

Page 10

 

 

Third Quarter 2024
Property Summary - Leasing Activity by Quarter
(unaudited)

  

   Three Months Ended 
   September 30,
2024
   June 30,
2024
   March 31,
2024
   December 31,
2023
   September 30,
2023
 
Total Office and Retail Portfolio(1)                         
Total leases executed   31    35    25    20    22 
Weighted average lease term   7.0 years    7.0 years    7.9 years    10.4 years    8.4 years 
Average free rent period   5.2 months    7.4 months    7.9 months    11.9 months    10.2 months 
                          
Office                         
Total square footage executed   291,418    262,991    367,262    177,406    252,562 
Average starting cash rent psf - leases executed  $70.11   $66.60   $64.03   $64.54   $66.53 
Previously escalated cash rents psf  $68.34   $65.31   $61.08   $61.17   $60.28 
Percentage of new cash rent over previously escalated rents   2.6%   2.0%   4.8%   5.5%   10.4%
                          
Retail                         
Total square footage executed   12,792    8,990    2,458    7,452    3,187 
Average starting cash rent psf - leases executed  $203.88   $91.14   $400.00   $189.20   $169.44 
Previously escalated cash rents psf  $332.35   $75.03   $378.97   $288.16   $169.31 
Percentage of new cash rent over previously escalated rents   (38.7)%   21.5%   5.5%   (34.3)%   0.1%
                          
Total Office and Retail Portfolio                         
Total square footage executed   304,210    271,981    369,720    184,858    255,749 
Average starting cash rent psf - leases executed  $75.74   $67.41   $66.27   $70.32   $67.81 
Previously escalated cash rents psf  $79.44   $65.63   $63.20   $71.71   $61.64 
Percentage of new cash rent over previously escalated rents   (4.7)%   2.7%   4.9%   (1.9)%   10.0%
                          
Leasing commission costs per square foot  $19.67   $18.87   $21.01   $26.88   $18.99 
Tenant improvement costs per square foot   42.90    65.69    64.98    85.60    88.50 
Total LC and TI per square foot(2)  $62.57   $84.56   $85.99   $112.48   $107.49 
Total LC and TI per square foot per year of weighted average lease term(3)  $8.94   $12.14   $10.92   $10.80   $12.84 
                          
Occupancy   88.8%   88.5%   87.6%   86.3%   87.0%
                          
Manhattan Office Portfolio                         
Total leases executed   25    31    22    15    19 
                          
Office - New Leases                         
Total square footage executed   130,688    162,655    201,580    96,341    78,305 
Average starting cash rent psf - leases executed  $66.07   $67.44   $59.70   $62.26   $65.59 
Previously escalated cash rents psf  $63.21   $64.36   $55.66   $59.54   $59.89 
Percentage of new cash rent over previously escalated rents   4.5%   4.8%   7.3%   4.6%   9.5%
                          
Office - Renewal Leases(1)                         
Current Renewals   53,622    43,895    34,084    38,676    157,133 
Early Renewals   105,019    54,761    121,612    20,962    7,270 
Total square footage executed   158,641    98,656    155,696    59,638    164,403 
Average starting cash rent psf - leases executed  $73.11   $65.50   $70.30   $68.61   $68.42 
Previously escalated cash rents psf  $72.24   $67.09   $68.19   $64.26   $61.62 
Percentage of new cash rent over previously escalated rents   1.2%   (2.4)%   3.1%   6.8%   11.0%
                          
Total Manhattan Office Portfolio                         
Total square footage executed   289,329    261,311    357,276    155,979    242,708 
Average starting cash rent psf - leases executed  $69.93   $66.71   $64.32   $64.69   $67.50 
Previously escalated cash rents psf  $68.16   $65.40   $61.12   $61.34   $61.06 
Percentage of new cash rent over previously escalated rents   2.6%   2.0%   5.2%   5.5%   10.6%
                          
Leasing commission costs per square foot  $17.40   $18.13   $19.87   $26.37   $18.01 
Tenant improvement costs per square foot   42.82    68.02    63.31    89.42    90.21 
Total LC and TI per square foot(2)  $60.22   $86.15   $83.18   $115.79   $108.22 
Total LC and TI per square foot per year of weighted average lease term(3)  $8.67   $12.49   $10.59   $10.56   $12.90 
                          
Occupancy   89.2%   88.8%   88.9%   87.3%   87.8%

 

(Table continued on next page)

 

Page 11

 

 

Third Quarter 2024
Property Summary - Leasing Activity by Quarter - (Continued)
(unaudited)

 

   Three Months Ended 
   September 30,
2024
   June 30,
2024
   March 31,
2024
   December 31,
2023
   September 30,
2023
 
Greater New York Metropolitan Area Office Portfolio                         
Total leases executed   1    1    2    2    2 
                          
Total square footage executed   2,089    1,680    9,986    21,427    9,854 
Average starting cash rent psf - leases executed  $95.09   $50.00   $53.75    N/A(4)   $42.53 
Previously escalated cash rents psf  $92.64   $52.25   $59.64    N/A(4)   $41.00 
Percentage of new cash rent over previously escalated rents   2.6%   (4.3)%   (9.9)%   N/A(4)    3.7%
                          
Leasing commission costs per square foot  $-   $9.95   $19.29   $16.38   $9.35 
Tenant improvement costs per square foot   -    3.50    128.47    80.55    34.49 
Total LC and TI per square foot(2)  $-   $13.45   $147.76   $96.93   $43.84 
Total LC and TI per square foot per year of weighted average lease term(3)  $-   $4.04   $18.59   $13.35   $7.92 
                          
Occupancy   70.7%   70.7%   76.8%   76.6%   79.3%
                          
Retail Portfolio                         
Total leases executed   5    3    1    3    1 
                          
Total square footage executed   12,792    8,990    2,458    7,452    3,187 
Average starting cash rent psf - leases executed  $203.88   $91.14   $400.00   $189.20   $169.44 
Previously escalated cash rents psf  $332.35   $75.03   $378.97   $288.16   $169.31 
Percentage of new cash rent over previously escalated rents   (38.7)%   21.5%   5.5%   (34.3)%   0.1%
                          
Leasing commission costs per square foot  $74.25   $41.87   $193.06   $67.66   $123.73 
Tenant improvement costs per square foot   51.72    9.45    50.00    20.18    125.00 
Total LC and TI per square foot(2)  $125.97   $51.32   $243.06   $87.84   $248.73 
Total LC and TI per square foot per year of weighted average lease term(3)  $14.73   $5.33   $23.15   $10.88   $15.55 
                          
Occupancy   91.1%   92.3%   89.8%   90.4%   90.4%
                          
Multifamily Portfolio                         
Percent occupied(5)   96.8%   97.9%   97.1%   98.1%   97.1%
Total number of units(5)   732    727    727    727    727 

 

Notes:
(1) Added in the quarter ended June 30, 2024, for all comparative periods we include "Early Renewals", defined as leases which were signed over two years prior to the lease expiration. Amounts listed as "Total Renewals" in prior periods have been renamed to "Current Renewals" above. Amounts for total leases executed, weighted average lease term, average free rent period, total square footage executed, average starting cash rent psf - leases executed, previously escalated cash rents psf, percentage of new cash rent over previously escalated rents, leasing commission costs per square foot, tenant improvement costs per square foot and total LC and TI per square foot for the quarters ended March 31, 2024, December 31, 2023 and September 30, 2023 have been adjusted to include the impact of the early renewals for those same prior quarters.
(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.
(3) Added in the quarter ended June 30, 2024, for all comparative periods and is calculated by dividing the total LC and TI per square foot by the weighted average lease term.
(4) Leases on spaces that have been vacant for more than two years are not included in the calculation of leasing spreads. The average starting cash rent psf for these two leases was $42.06.
(5) Multifamily percent occupied excludes 20 units held offline in connection with an application for the extension of the New York State Real Property Tax Law 421-a Program at one of our multifamily properties. Total number of units disclosed does not have this exclusion.

 

Page 12

 

 

Third Quarter 2024
Commercial Property Detail
(unaudited)

 

Property Name  Location or Sub-Market  Rentable
Square
Feet (1)
   Percent
Occupied (2)
   Percent
Leased (3)
   Annualized
Rent (4)
   Annualized
Rent per
Occupied
Square Foot (5)
   Number of
Leases (6)
 
Office - Manhattan                                 
The Empire State Building  Penn Station -Times Sq. South   2,710,937    91.2%   94.2%  $165,471,743   $66.96    148 
One Grand Central Place  Grand Central   1,231,342    86.3%   92.0%   70,122,062    65.97    144 
1400 Broadway (7)  Penn Station -Times Sq. South   917,281    88.7%   96.1%   49,810,950    61.25    19 
111 West 33rd Street (8)   Penn Station -Times Sq. South   639,595    97.7%   100.0%   43,217,450    69.19    22 
250 West 57th Street  Columbus Circle - West Side   474,790    83.4%   84.6%   26,235,190    66.29    30 
1359 Broadway  Penn Station -Times Sq. South   456,508    81.6%   90.7%   23,264,340    62.49    30 
501 Seventh Avenue  Penn Station -Times Sq. South   454,788    90.5%   90.5%   22,376,790    54.39    18 
1350 Broadway (9)  Penn Station -Times Sq. South   384,225    82.9%   96.5%   19,431,860    60.98    50 
1333 Broadway  Penn Station -Times Sq. South   296,349    94.4%   94.4%   16,337,012    58.38    13 
Office - Manhattan   7,565,815    89.2%   93.6%   436,267,397    64.63    474 
                                  
Office - Greater New York Metropolitan Area                              
Metro Center  Stamford, CT   281,985    70.7%   73.3%   11,330,301    56.79    19 
Office - Greater New York Metropolitan Area   281,985    70.7%   73.3%   11,330,301    56.79    19 
                                  
Total/Weighted Average Office Properties   7,847,800    88.6%   92.9%   447,597,698    64.41    493 
                                  
Retail Properties                                 
112 West 34th Street (8)  Penn Station -Times Sq. South   93,057    100.0%   100.0%   25,078,377    269.49    4 
The Empire State Building  Penn Station -Times Sq. South   88,445    77.4%   78.7%   7,800,847    113.91    11 
One Grand Central Place  Grand Central   70,810    100.0%   100.0%   7,864,545    111.07    12 
1333 Broadway  Penn Station -Times Sq. South   67,001    100.0%   100.0%   10,188,331    152.06    4 
North Sixth Street Collection  Williamsburg - Brooklyn   65,210    87.1%   87.1%   7,829,266    137.81    14 
250 West 57th Street  Columbus Circle - West Side   63,443    93.8%   93.8%   8,782,849    147.59    6 
10 Union Square  Union Square   58,006    91.9%   91.9%   8,326,772    156.22    10 
1542 Third Avenue  Upper East Side   56,211    95.0%   95.0%   2,511,068    47.03    3 
1010 Third Avenue  Upper East Side   38,235    100.0%   100.0%   3,424,150    89.56    2 
1359 Broadway  Penn Station -Times Sq. South   29,247    82.5%   99.4%   1,660,466    68.86    4 
501 Seventh Avenue  Penn Station -Times Sq. South   27,213    73.1%   89.4%   1,433,160    72.08    6 
77 West 55th Street  Midtown   25,388    100.0%   100.0%   2,083,627    82.07    3 
1350 Broadway (9)  Penn Station -Times Sq. South   19,511    44.0%   100.0%   2,161,613    251.94    4 
1400 Broadway (7)   Penn Station -Times Sq. South   17,017    82.2%   82.2%   1,670,565    119.50    6 
561 10th Avenue  Hudson Yards   11,822    100.0%   100.0%   1,618,301    136.89    2 
298 Mulberry Street  NoHo   10,365    100.0%   100.0%   1,981,708    191.19    1 
345 East 94th Street  Upper East Side   3,700    100.0%   100.0%   254,444    68.77    1 
Total/Weighted Average Retail Properties   744,681    91.1%   94.0%   94,670,089    139.54    93 
                                  
Portfolio Total   8,592,481    88.8%   93.0%  $542,267,787   $71.09    586 

 

Notes:
(1) Excludes (i) 195,410 square feet of space across the Company's portfolio attributable to building management use and tenant amenities, (ii) 85,334 square feet of space attributable to the Company's Observatory, (iii) square footage related to the Company's residential units.
(2) Based on leases signed and commenced as of September 30, 2024.
(3) Includes occupied space plus leases signed but not commenced as of September 30, 2024.
(4) Represents annualized base rent and current reimbursement for operating expenses and real estate taxes.
(5) Represents annualized rent under leases commenced as of September 30, 2024 divided by occupied square feet.
(6) Represents the number of leases at each property or on a portfolio basis. If a tenant has more than one lease, whether or not at the same property, but with different expirations, the number of leases is calculated equal to the number of leases with different expirations.
(7) Denotes a ground leasehold interest in the property with a remaining term, including unilateral extension rights available to the Company, of approximately 39 years (expiring December 31, 2063).
(8) Denotes a ground leasehold interest in the property with a remaining term, including unilateral extension rights available to the Company, of approximately 53 years (expiring June 10, 2077).
(9) Denotes a ground leasehold interest in the property with a remaining term, including unilateral extension rights available to the Company, of approximately 26 years (expiring July 31, 2050).

 

Page 13

 

 

Third Quarter 2024
Total Portfolio Expirations and Vacates Summary
(unaudited and in square feet)

 

   Actual   Forecast (1)   Forecast (1)   Forecast (1)   Forecast (1)   Forecast (1)   Forecast (1) 
   Three Months Ended     
Total Office and Retail Portfolio (2)  September 30,
2024
   December 31,
2024
   March 31, 2025   June 30, 2025   September 30,
2025
   December 31,
2025
   Full Year
2025
 
Total expirations   118,518    190,672    135,073    105,753    65,034    228,413    534,273 
Less: broadcasting   (511)   (906)   -    -    (511)   -    (511)
Office and retail expirations   118,007    189,766    135,073    105,753    64,523    228,413    533,762 
                                    
Renewals & relocations (3)   13,202    40,468    24,714    33,376    20,533    34,966    113,589 
New leases (4)   29,200    33,520    -    8,187    -    119,226    127,413 
Vacates (5)   75,605    107,159    100,674    17,162    12,158    30,080    160,074 
Unknown (6)        8,619    9,685    47,028    31,832    44,141    132,686 
Total Office and Retail Portfolio expirations and vacates   118,007    189,766    135,073    105,753    64,523    228,413    533,762 
                                    
Manhattan Office Portfolio                                   
Total expirations   118,105    188,132    120,643    103,813    52,674    215,227    492,357 
Less: broadcasting   (511)   (906)   -    -    (511)   -    (511)
Office expirations   117,594    187,226    120,643    103,813    52,163    215,227    491,846 
                                    
Renewals & relocations (3)   13,202    40,468    24,714    33,376    13,252    30,988    102,330 
New leases (4)   29,200    33,520    -    8,187    -    119,226    127,413 
Vacates (5)   75,192    107,159    86,244    15,222    12,158    30,080    143,704 
Unknown (6)        6,079    9,685    47,028    26,753    34,933    118,399 
Total expirations and vacates   117,594    187,226    120,643    103,813    52,163    215,227    491,846 
                                    
Greater New York Metropolitan Area Office Portfolio                           
Office expirations   -    2,540    -    -    12,360    8,855    21,215 
                                    
Renewals & relocations (3)   -    -    -    -    7,281    -    7,281 
New leases (4)   -    -    -    -    -    -    - 
Vacates (5)   -    -    -    -    -    -    - 
Unknown (6)   -    2,540    -    -    5,079    8,855    13,934 
Total expirations and vacates   -    2,540    -    -    12,360    8,855    21,215 
                                    
Retail Portfolio                                   
Retail expirations   413    -    14,430    1,940    -    4,331    20,701 
                                    
Renewals & relocations (3)   -    -    -    -    -    3,978    3,978 
New leases (4)   -    -    -    -    -    -    - 
Vacates (5)   413    -    14,430    1,940    -    -    16,370 
Unknown (6)   -    -    -    -    -    353    353 
Total expirations and vacates   413    -    14,430    1,940    -    4,331    20,701 

 

Notes:
(1) These forecasts, which are subject to change, are based on management's current expectations, including, among other things, discussions with and other information provided by tenants as well as management's analyses of past historical trends.
(2) Any lease on month to month or short-term will re-appear in "Actual" in each period until tenant has vacated or renewed, and thus it would be double counted if periods were cumulated. "Forecast" avoids double counting.
(3) For forecasted periods, “Renewals & relocations” includes the following: tenants renew their existing leases in all or a portion of their current spaces; tenants which signed renewal leases for a term of less than six months and reappear in forecast periods in 2024; and  tenants who move within a building or within the Company's portfolio.
(4) For forecasted periods, “New Leases” represents leases that have been signed with a new tenant, a subtenant who signed a direct lease or a tenant who expanded. There may be downtime between the lease expiration and the new lease commencement.
(5) For forecasted periods, “Vacates” assumes a tenant elects not to renew at the end of their existing lease or exercises an early termination option; leases that the Company decides not to renew at the end of tenants' existing lease due to anticipated future redevelopment or for other reasons. This also may include early lease terminations.
(6) For forecasted periods, "Unknown" represents tenants whose intentions are unknown.

 

Page 14

 

 

Third Quarter 2024
Tenant Lease Expirations
(unaudited)

 

   Number of
Leases
Expiring(1)
   Rentable
Square Feet
Expiring (2)
   Percent of
Portfolio
Rentable
Square Feet
Expiring
   Annualized
Rent (3)
   Percent of
Annualized
Rent
   Annualized
Rent Per
Rentable
Square Foot
 
Total Office and Retail Lease Expirations                        
Available   -    602,434    7.0%  $-    0.0%  $- 
Signed leases not commenced   29    362,299    4.2%   -    0.0%   - 
3Q 2024 (4)   7    56,456    0.7%   2,966,717    0.5%   52.55 
4Q 2024   33    164,276    1.9%   9,874,704    1.8%   60.11 
Total 2024   40    220,732    2.6%   12,841,421    2.3%   58.18 
1Q 2025   24    135,073    1.6%   9,554,090    1.8%   70.73 
2Q 2025   14    105,753    1.2%   7,267,400    1.3%   68.72 
3Q 2025   16    65,034    0.8%   4,161,934    0.8%   64.00 
4Q 2025   20    228,413    2.7%   16,009,304    3.0%   70.09 
Total 2025   74    534,273    6.3%   36,992,728    6.9%   69.24 
2026   71    593,188    6.9%   37,046,082    6.8%   62.45 
2027   91    717,483    8.4%   48,746,313    9.0%   67.94 
2028   61    942,831    11.0%   56,632,374    10.4%   60.07 
2029   56    802,764    9.3%   67,510,943    12.4%   84.10 
2030   48    740,558    8.6%   55,029,055    10.1%   74.31 
2031   26    200,060    2.3%   22,066,222    4.1%   110.30 
2032   28    360,963    4.2%   27,165,486    5.0%   75.26 
2033   31    263,973    3.1%   20,095,522    3.7%   76.13 
2034   22    331,909    3.9%   24,813,958    4.6%   74.76 
Thereafter   38    1,919,014    22.2%   133,327,684    24.7%   69.48 
Total   615    8,592,481    100.0%  $542,267,787    100.0%  $71.09 
                               
Manhattan Office Properties (5)                        
Available   -    482,323    6.4%  $-    0.0%  $- 
Signed leases not commenced   22    333,670    4.4%   -    0.0%     
3Q 2024 (4)   7    56,456    0.7%   2,966,717    0.7%   52.55 
4Q 2024   32    161,736    2.1%   9,811,204    2.2%   60.66 
Total 2024   39    218,192    2.8%   12,777,921    2.9%   58.56 
1Q 2025   23    120,643    1.6%   8,659,430    2.0%   71.78 
2Q 2025   13    103,813    1.4%   7,019,926    1.6%   67.62 
3Q 2025   14    52,674    0.7%   3,452,299    0.8%   65.54 
4Q 2025   16    215,227    2.8%   14,211,537    3.3%   66.03 
Total 2025   66    492,357    6.5%   33,343,192    7.7%   67.72 
2026   61    492,761    6.5%   30,786,647    7.1%   62.48 
2027   80    634,131    8.4%   39,157,155    9.0%   61.75 
2028   54    921,547    12.2%   54,151,823    12.4%   58.76 
2029   42    655,738    8.7%   42,022,420    9.6%   64.08 
2030   33    634,354    8.4%   41,539,685    9.5%   65.48 
2031   16    116,840    1.5%   8,453,113    1.9%   72.35 
2032   22    329,676    4.4%   24,335,406    5.6%   73.82 
2033   16    156,280    2.1%   9,850,320    2.3%   63.03 
2034   16    307,701    4.1%   21,414,688    4.9%   69.60 
Thereafter   29    1,790,245    23.6%   118,435,027    27.1%   66.16 
Total Manhattan office properties   496    7,565,815    100.0%  $436,267,397    100.0%  $64.63 

 

(Table continued on next page)

 

Page 15

 

 

Third Quarter 2024
Tenant Lease Expirations
(unaudited)

  

  Number of
Leases
Expiring(1)
   Rentable
Square Feet
Expiring (2)
   Percent of
Portfolio
Rentable
Square Feet
Expiring
   Annualized
Rent (3)
   Percent of
Annualized
Rent
   Annualized
Rent Per
Rentable
Square Foot
 
Greater New York Metropolitan Area Office Portfolio                        
Available   -    75,351    26.7%  $-    0.0%  $- 
Signed leases not commenced   1    7,137    2.5%   -    0.0%   - 
3Q 2024 (4)   -    -    0.0%   -    0.0%   - 
4Q 2024   1    2,540    0.9%   63,500    0.6%   25.00 
Total 2024   1    2,540    0.9%   63,500    0.6%   25.00 
1Q 2025   -    -    0.0%   -    0.0%   - 
2Q 2025   -    -    0.0%   -    0.0%   - 
3Q 2025   2    12,360    4.4%   709,635    6.3%   57.41 
4Q 2025   1    8,855    3.1%   500,505    4.4%   56.52 
Total 2025   3    21,215    7.5%   1,210,140    10.7%   57.04 
2026   1    23,268    8.3%   1,418,307    12.5%   60.96 
2027   4    21,546    7.6%   1,214,780    10.7%   56.38 
2028   2    11,480    4.1%   639,158    5.6%   55.68 
2029   2    12,183    4.3%   703,884    6.2%   57.78 
2030   3    29,062    10.3%   1,773,632    15.7%   61.03 
2031   1    15,030    5.3%   820,187    7.2%   54.57 
2032(6)   1    -    0.0%   6,365    0.1%   - 
2033   1    63,173    22.5%   3,480,348    30.7%   55.09 
2034   -    -    0.0%   -    0.0%   - 
Thereafter   -    -    0.0%   -    0.0%   - 
Total greater New York metropolitan area office portfolio   20    281,985    100.0%  $11,330,301    100.0%  $56.79 
                               
Retail Properties                        
Available   -    44,760    6.0%  $-    0.0%  $- 
Signed leases not commenced   6    21,492    2.9%   -    0.0%   - 
3Q 2024 (4)   -    -    0.0%   -    0.0%   - 
4Q 2024   -    -    0.0%   -    0.0%   - 
Total 2024   -    -    0.0%   -    0.0%   - 
1Q 2025   1    14,430    1.9%   894,660    0.9%   62.00 
2Q 2025   1    1,940    0.3%   247,474    0.3%   127.56 
3Q 2025   -    -    0.0%   -    0.0%   - 
4Q 2025   3    4,331    0.6%   1,297,262    1.4%   299.53 
Total 2025   5    20,701    2.8%   2,439,396    2.6%   117.84 
2026   9    77,159    10.4%   4,841,128    5.1%   62.74 
2027   7    61,806    8.3%   8,374,378    8.8%   135.49 
2028   5    9,804    1.3%   1,841,393    1.9%   187.82 
2029   12    134,843    18.1%   24,784,639    26.2%   183.80 
2030   12    77,142    10.4%   11,715,738    12.4%   151.87 
2031   9    68,190    9.2%   12,792,922    13.5%   187.61 
2032   5    31,287    4.2%   2,823,715    3.0%   90.25 
2033   14    44,520    6.0%   6,764,855    7.1%   151.95 
2034   6    24,208    3.3%   3,399,270    3.6%   140.42 
Thereafter   9    128,769    17.1%   14,892,655    15.8%   115.65 
Total retail properties   99    744,681    100.0%  $94,670,089    100.0%  $139.54 

 

Notes:
(1) If a tenant has more than one lease, whether or not at the same property, but with different expirations, the number of leases is calculated equal to the number of leases with different expirations.
(2) Excludes (i) 195,410 square feet of space across the Company's portfolio attributable to building management use and tenant amenities, (ii) 85,334 square feet of space attributable to the Company's Observatory, and (iii) square footage related to the Company's residential units.
(3) Represents annualized base rent and current reimbursement for operating expenses and real estate taxes.
(4) Represents leases that are included in occupancy as of September 30, 2024 and expire on September 30, 2024.
(5) Excludes (i) retail space in the Manhattan office and (ii) the Empire State Building broadcasting licenses and Observatory operations.
(6) Represents a telecom lease with no square footage.

 

Page 16

 

 

 

  Third Quarter 2024
20 Largest Tenants and Portfolio Tenant Diversification by Industry
(unaudited)

 

            Weighted      Percent of         
            Average  Total   Portfolio       Percent of 
            Remaining  Occupied   Rentable       Portfolio 
         Lease  Lease  Square   Square   Annualized   Annualized 
20 Largest Tenants  Property  Expiration (1)  Term(2)  Feet (3)   Feet (4)   Rent (5)   Rent (6) 
1.  LinkedIn  Empire State Building  Aug. 2036  11.9 years   501,409    5.84%  $35,423,019    6.50%
2.  Flagstar Bank  1400 Broadway  Aug. 2039  14.9 years   313,109    3.64%   19,132,313    3.50%
3.  Centric Brands Inc.  Empire State Building  Oct. 2028  4.1 years   252,929    2.94%   14,006,589    2.60%
4.  PVH Corp.  501 Seventh Avenue  Oct. 2028  4.1 years   237,281    2.76%   13,325,962    2.50%
5.  Sephora USA, Inc.  112 West 34th Street  Jan. 2029  4.3 years   11,334    0.13%   10,559,438    1.90%
6.  Institutional Capital Network, Inc.  One Grand Central Place  Dec. 2039  15.3 years   141,224    1.64%   10,299,156    1.90%
7.  Target Corporation  112 West 34th St., 10 Union Sq.  Jan. 2038  13.3 years   81,340    0.95%   9,444,745    1.70%
8.  Coty Inc.  Empire State Building  Jan. 2030  5.3 years   157,892    1.84%   9,174,254    1.70%
9.  Macy's  111 West 33rd Street  May 2030  5.7 years   131,117    1.53%   8,803,204    1.60%
10.  Li & Fung  1359 Broadway, ESB  Oct. 2027 - Oct. 2028  3.8 years   149,061    1.73%   8,245,864    1.50%
11.  URBAN OUTFITTERS  1333 Broadway  Sep. 2029  5.0 years   56,730    0.66%   8,180,619    1.50%
12.  Foot Locker, Inc.  112 West 34th Street  Sep. 2031  7.0 years   34,192    0.40%   7,823,823    1.40%
13.  FDIC  Empire State Building  Dec. 2025  1.3 years   119,226    1.39%   7,638,979    1.40%
14.  HNTB Corporation  Empire State Building  Nov. 2024 - Sep. 2034  7.5 years   105,143    1.22%   7,541,913    1.40%
15.  The Michael J. Fox Foundation  111 West 33rd Street  Nov. 2029  5.2 years   86,492    1.01%   6,519,359    1.20%
16.  Fragomen  1400 Broadway  Feb. 2035  10.4 years   107,680    1.25%   6,383,091    1.20%
17.  Burlington Merchandising Corporation  1400 Broadway  Jan. 2038  13.3 years   102,898    1.20%   6,319,067    1.20%
18.  Shutterstock, Inc.  Empire State Building  Apr. 2029  4.6 years   104,386    1.22%   6,223,370    1.10%
19.  ASCAP  250 West 57th Street  Aug. 2034  9.9 years   87,943    1.02%   5,997,648    1.10%
20.  Kohl's Department Stores, Inc.  1400 Broadway  May 2029  4.7 years   91,775    1.07%   4,875,289    0.90%
     Total            2,873,161    33.4%  $205,917,702    37.8%

 

Notes:

(1)Expiration dates are per lease and do not assume exercise of renewal or extension options. For tenants with more than two leases, the lease expiration is shown as a range.
(2)Represents the weighted average lease term based on annualized rent.
(3)Based on leases signed and commenced as of September 30, 2024.
(4)Represents the percentage of rentable square feet of the Company's office and retail portfolios in the aggregate.
(5)Represents annualized base rent and current reimbursement for operating expenses and real estate taxes.
(6)Represents the percentage of annualized rent of the Company's office and retail portfolios in the aggregate.

 

Portfolio Tenant Diversification by Industry (based on annualized rent)

 

 

 

Page 17

 

 

  Third Quarter 2024
Capital Expenditures and Redevelopment Program and Leasing Opportunity
(unaudited and dollars in thousands)

 

   Three Months Ended 
Capital expenditures  September 30
2024
   June 30
2024
   March 31
2024
   December 31,
2023
   September 30,
2023
 
Tenant improvements - first generation  $-   $-   $-   $-   $- 
Tenant improvements - second generation   17,149    25,087    27,404    28,817    18,047 
Leasing commissions - first generation   138    129    35    125    203 
Leasing commissions - second generation   3,753    3,807    9,730    5,706    2,319 
Building improvements - first generation   128    -    -    -    - 
Building improvements - second generation   7,838    11,362    13,509    12,102    7,425 
Non-recurring capital improvements   2,825    5,979    6,464    4,420    5,226 
Total  $31,831   $46,364   $57,142   $51,170   $33,220 
                          
Leasing Opportunity - Inventory of Current Vacant Space as of September 30, 2024 (in square feet) (1)            
                          
Total Portfolio vacant space                       965,000 
                          
Signed leases not commenced ("SLNC"):                         
Manhattan Office Properties SLNC                       334,000 
Greater New York Office Properties SLNC                       7,000 
Retail Properties SLNC                       22,000 
Greater New York Office Properties                       75,000 
Retail Properties                       45,000 
Manhattan Office Properties                       401,000 
Manhattan Office Properties off market                       42,000 
Manhattan Office Properties other                       39,000 
Total                       965,000 

 

Notes:

(1)These estimates are based on the Company's current budgets and are subject to change.

 

Page 18

 

 

  Third Quarter 2024
Observatory Summary
(unaudited and dollars in thousands)

 

       Three Months Ended 
   Twelve
Months to
Date
   September 30,
2024
   June 30,
2024
   March 31,
2024
   December 31,
 2023
   September 30,
 2023
 
Observatory NOI                              
Observatory revenue (1)  $134,319   $39,382   $34,124   $24,596   $36,217   $37,562 
Observatory expenses   36,386    9,715    8,958    8,431    9,282    9,471 
NOI   97,933    29,667    25,166    16,165    26,935    28,091 
Intercompany rent expense (2)   82,053    23,461    20,980    16,067    21,545    22,113 
NOI after intercompany rent  $15,880   $6,206   $4,186   $98   $5,390   $5,978 
                               
Observatory Metrics                              
Number of visitors (3)        727,000    648,000    485,000    711,000    743,000 
Change in visitors year over year        (2.2)%   (2.7)%   9.5%   7.7%   8.2%
Number of bad weather days ("BWD") (4)        8    8    17    11    10 

 

Notes:

(1)Observatory revenues include the fixed license fee received from WDFG North America, the Observatory gift shop operator. For the three months ended September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023, and September 30, 2023, the fixed license fee was $1,855, $1,855, $1,855, $1,807 and $1,807, respectively.
(2)The Observatory pays a market-based rent payment comprised of fixed and percentage rent to the Empire State Building. Intercompany rent is eliminated upon consolidation.
(3)Reflects the number of visitors who pass through the turnstile, excluding visitors who make a second visit on the same ticket at no additional charge.
(4)The Company defines a bad weather day as one in which the top of the Empire State Building is obscured from view for more than 50% of the day.

 

Annual Observatory NOI 2018 to 2023

 

 

Notes:

(1)The 102nd floor Observatory was closed for approximately nine months in 2019 for renovations.
(2)Due to the COVID-19 pandemic, the Observatory was closed on March 16, 2020. The 86th floor Observatory reopened on July 20, 2020 and the 102nd floor Observatory reopened on August 24, 2020.
(3)The Observatory continued to experience a gradual recovery in visitors due to the COVID-19 pandemic.

 

Page 19

 

 

  Third Quarter 2024
Funds from Operations ("FFO"), Modified Funds From Operations ("Modified FFO"), Core Funds
from Operations ("Core FFO"), Core Funds Available for Distribution ("Core FAD") and EBITDA
(unaudited and in thousands, except per share amounts)

 

   Three Months Ended 
   September 30,
2024
   June 30,
2024
   March 31,
2024
   December 31,
2023
   September 30,
2023
 
Reconciliation of Net Income to FFO, Modified FFO and Core FFO                         
Net Income  $22,796   $28,555   $10,215   $15,830   $19,928 
Non-controlling interests in other partnerships   -    -    (4)   1    (111)
Preferred unit distributions   (1,050)   (1,051)   (1,050)   (1,050)   (1,050)
Real estate depreciation and amortization   44,871    46,398    44,857    48,548    45,174 
(Gain) loss on dispostion of properties   (1,262)   (10,803)   -    2,497    - 
FFO attributable to common stockholders and the Operating Partnership   65,355    63,099    54,018    65,826    63,941 
Amortization of below-market ground lease   1,958    1,958    1,958    1,958    1,957 
Modified FFO attributable to common stockholders and the Operating Partnership   67,313    65,057    55,976    67,784    65,898 
Interest expense associated with property in receivership   1,922    628    -    -    - 
Loss on early extinguishment of debt   -    -    553    -    - 
Core FFO attributable to common stockholders and the Operating Partnership  $69,235   $65,685   $56,529   $67,784   $65,898 
                          
Total weighted average shares and Operating Partnership units                         
Basic   264,787    264,676    264,562    262,775    262,756 
Diluted   269,613    268,716    267,494    267,003    266,073 
                          
FFO attributable to common stockholders and the Operating Partnership per share and unit                         
Basic  $0.25   $0.24   $0.20   $0.25   $0.24 
Diluted  $0.24   $0.23   $0.20   $0.25   $0.24 
                          
Modified FFO attributable to common stockholders and the Operating Partnership per share and unit                         
Basic  $0.25   $0.25   $0.21   $0.26   $0.25 
Diluted  $0.25   $0.24   $0.21   $0.25   $0.25 
                          
Core FFO attributable to common stockholders and the Operating Partnership per share and unit                         
Basic  $0.26   $0.25   $0.21   $0.26   $0.25 
Diluted  $0.26   $0.24   $0.21   $0.25   $0.25 
                          
Reconciliation of Core FFO to Core FAD                     
Core FFO  $69,235   $65,685   $56,529   $67,784   $65,898 
Add:                         
Amortization of deferred financing costs   1,110    1,050    1,019    1,075    1,089 
Non-real estate depreciation and amortization   1,029    1,074    1,107    1,077    1,298 
Amortization of non-cash compensation expense   5,752    6,388    3,449    5,294    4,989 
Amortization of loss on interest rate derivative   1,386    1,480    1,527    1,527    1,527 
Deduct:                         
Straight-line rental revenues, above/below market rent, and other non-cash adjustments   (3,082)   (2,744)   (3,904)   (3,013)   (5,569)
Corporate capital expenditures   (121)   (157)   (238)   (71)   (90)
Tenant improvements - second generation   (17,149)   (25,087)   (27,404)   (28,817)   (18,047)
Building improvements - second generation   (7,838)   (11,362)   (13,509)   (12,102)   (7,425)
Leasing commissions - second generation   (3,753)   (3,807)   (9,730)   (5,706)   (2,319)
Core FAD (1)  $46,569   $32,521   $8,846   $27,047   $41,351 
                          
Reconciliation of Net Income to EBITDA and Adjusted EBITDA                    
Net income  $22,796   $28,555   $10,215   $15,830   $19,928 
Interest expense   27,408    25,323    25,128    25,393    25,382 
Interest expense associated with property in receivership   1,922    628    -    -    - 
Income tax expense (benefit)   1,442    750    (655)   1,792    1,409 
Depreciation and amortization   45,899    47,473    46,081    49,599    46,624 
EBITDA   99,467    102,729    80,769    92,614    93,343 
(Gain) loss on disposition of properties   (1,262)   (10,803)   -    2,497    - 
Adjusted EBITDA  $98,205   $91,926   $80,769   $95,111   $93,343 

 

(1)Beginning in the three months ended December 31, 2023, we have eliminated a deduction of other non-recurring capital improvements from Core FFO to arrive at Core FAD and the related Core FAD payout ratio. We made this modification to the calculation of Core FAD for the other periods presented; in our previous supplemental reports prior to this change, Core FAD was $35,922 for the three months ended September 30, 2023.

 

Page 20

 

 

  Third Quarter 2024
Debt Summary
(unaudited and dollars in thousands)

 

   September 30, 2024   June 30, 2024 
       Weighted Average       Weighted Average 
       Interest   Maturity       Interest   Maturity 
Debt Summary  Balance   Rate (1)   (Years)   Balance   Rate (1)   (Years) 
Mortgage debt  $705,624    3.64%   6.1   $713,177    3.64%   5.8 
Senior unsecured notes   1,200,000    4.69%   5.5    1,200,000    4.69%   5.8 
Unsecured term loan facilities (2)   270,000    4.19%   3.0    270,000    4.19%   3.3 
Unsecured revolving credit facility (3)   120,000    4.04%   4.4    120,000    4.04%   4.7 
Total fixed rate debt   2,295,624    4.27%   5.3    2,303,177    4.27%   5.4 
                               
Unsecured term loan facilities (4)   -    -    -    -    -    - 
Unsecured revolving credit facility (4)   -    -    4.4    -    -    4.7 
Total variable rate debt   -    -    4.4    -    -    4.7 
                               
Total debt   2,295,624    4.27%   5.3    2,303,177    4.27%   5.4 
Deferred financing costs, net   (10,691)             (10,844)          
Debt discount   (6,378)             (6,574)          
Total  $2,278,555             $2,285,759           
                               
                   Outstanding at           
                   September 30,     Letters     Available 
Available Capacity   Facility    2024     of Credit     Capacity 
Unsecured revolving credit facility (5)            $620,000   $120,000   $-   $500,000 
                               
                        Current    In 
Covenant Summary   Required    Quarter    Compliance 
Maximum Total Leverage(6)                  <60%   33.2%   Yes 
Maximum Secured Leverage (6)                  <40%   10.7%   Yes 
Minimum Fixed Charge Coverage                  >1.50x   2.9x   Yes 
Minimum Unencumbered Interest Coverage                  >1.75x   4.7x   Yes 
Maximum Unsecured Leverage (6)                  <60%   26.4%    Yes  

 

Notes:

(1)These reflect the weighted average interest rates comprised of either the fixed coupon of the debt or the rate which are fixed under variable to fixed interest rate swap agreements.
(2)SOFR is fixed at 2.56% for $175 million through maturity and 2.63% for $95 million through March 19, 2025. Subsequent to March 19, 2025, SOFR is fixed at 3.31% for $95 million through maturity.
(3)SOFR is fixed at 2.63% for $120 million through maturity.
(4)As of September 30, 2024, each of our unsecured term loan facilities and the balance drawn on our revolving credit facility are fixed under variable to fixed interest rate swap agreements.
(5)This unsecured revolving credit facility matures in March 2029, inclusive of two additional six-month extension options.
(6)Represents the ratio of total indebtedness to total asset value as determined in accordance with the credit facility agreement.

 

Page 21

 

 

  Third Quarter 2024
Debt Detail
(unaudited and dollars in thousands)

 

   Stated           
   Interest   Principal   Maturity   
   Rate (%)   Balance   Date  Amortization
10 Union Square   3.70%  $50,000   4/1/2026  Interest only
1542 Third Avenue   4.29%   30,000   5/1/2027  Interest only
1010 Third Avenue & 77 West 55th St.   4.01%   34,278   1/5/2028  30 years
Metro Center(1)   3.59%   72,078   11/5/2029  30 years
250 West 57th Street   2.83%   180,000   12/1/2030  Interest only
1333 Broadway   4.21%   160,000   2/5/2033  Interest only
345 East 94th Street - Series A   70% of SOFR plus 0.95%   43,600   11/1/2030  Interest only
345 East 94th Street - Series B   SOFR plus 2.24%   6,676   11/1/2030  30 years
561 10th Avenue - Series A   70% of SOFR plus 1.07%   114,500   11/1/2033  Interest only
561 10th Avenue - Series B   SOFR plus 2.45%   14,492   11/1/2033  30 years
Total fixed rate mortgage debt        705,624       
                 
Unsecured term loan facility   SOFR plus 1.50%   175,000   12/31/2026  Interest only
Unsecured term loan facility   SOFR plus 1.50%   95,000   3/8/2029  Interest only
Unsecured revolving credit facility   SOFR plus 1.30%   120,000   3/8/2029  Interest only
Senior unsecured notes:                
Series A   3.93%   100,000   3/27/2025  Interest only
Series B   4.09%   125,000   3/27/2027  Interest only
Series C   4.18%   125,000   3/27/2030  Interest only
Series D   4.08%   115,000   1/22/2028  Interest only
Series E   4.26%   160,000   3/22/2030  Interest only
Series F   4.44%   175,000   3/22/2033  Interest only
Series G   3.61%   100,000   3/17/2032  Interest only
Series H   3.73%   75,000   3/17/2035  Interest only
Series I   7.20%   155,000   6/17/2029  Interest only
Series J   7.32%   45,000   6/17/2031  Interest only
Series K   7.41%   25,000   6/17/2034  Interest only
Total / weighted average debt   4.27%   2,295,624       
Deferred financing costs, net        (10,691)      
Debt discount        (6,378)      
Total       $2,278,555       

 

Note:

(1)On July 1, 2024, this loan was refinanced to mature November 2029, inclusive of a one-year extension option. Effective November 2024, the new principal balance of $72 million is interest only at the same interest rate of 3.59%.

 

Page 22

 

 

  Third Quarter 2024
Debt Maturities and Ground Lease Commitments
(unaudited and dollars in thousands)

 

Year  Maturities (1)   Amortization   Total   Percentage of
Total Debt
   Weighted
Average
Interest
Rate of
Maturing Debt
 
2024  $-   $1,350   $1,350    0.1%   0.00%
2025   100,000    3,664    103,664    4.5%   3.93%
2026   225,000    3,957    228,957    10.0%   4.06%
2027   155,000    4,276    159,276    6.9%   4.13%
2028   146,091    3,555    149,646    6.5%   4.06%
2029   441,600    3,988    445,588    19.4%   5.12%
2030   508,600    4,413    513,013    22.3%   3.67%
2031   45,000    3,283    48,283    2.1%   7.32%
2032   100,000    3,591    103,591    4.5%   3.61%
2033   439,007    3,249    442,256    19.3%   4.20%
Thereafter   100,000    -    100,000    4.4%   4.65%
Total debt  $2,260,298   $35,326    2,295,624    100.0%   4.27%
Deferred financing costs, net             (10,691)          
Debt discount             (6,378)          
Total            $2,278,555           

 

Debt Maturity Profile

 

 

Ground Lease Commitments (2)

 

Year  1350
Broadway (3)
   1400
Broadway (4)
   111 West
33rd Street (5)
   Total 
2024  $27   $169   $184   $380 
2025   108    675    735    1,518 
2026   93    675    735    1,503 
2027   72    675    735    1,482 
2028   72    675    735    1,482 
Thereafter   1,584    23,625    35,586    60,795 
   $1,956   $26,494   $38,710   $67,160 

 

Notes:

(1)Assumes extension options are exercised for the 2029 maturities of the term loan, revolving credit facility and Metro Center mortgage.
(2)There are no fair value market resets, no step-ups, and no escalations in the three ground lease commitments.
(3)Expires July 31, 2050 with a remaining term, including unilateral extension rights available to the Company, of approximately 26 years.
(4)Expires December 31, 2063 with a remaining term, including unilateral extension rights available to the Company, of approximately 39 years.
(5)Expires June 10, 2077 with a remaining term, including unilateral extension rights available to the Company, of approximately 53 years.

 

Page 23

 

v3.24.3
Cover
Oct. 21, 2024
Document Information [Line Items]  
Document Type 8-K
Amendment Flag false
Document Period End Date Oct. 21, 2024
Entity File Number 001-36105
Entity Registrant Name EMPIRE STATE REALTY TRUST, INC.
Entity Central Index Key 0001541401
Entity Tax Identification Number 37-1645259
Entity Incorporation, State or Country Code MD
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 687-8700
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Common Stock [Member]  
Document Information [Line Items]  
Title of 12(b) Security Class A Common Stock, par value $0.01 per share
Trading Symbol ESRT
Security Exchange Name NYSE
Empire State Realty Op Lp [Member]  
Document Information [Line Items]  
Document Type 8-K
Amendment Flag false
Document Period End Date Oct. 21, 2024
Entity File Number 001-36106
Entity Registrant Name EMPIRE STATE REALTY OP, L.P.
Entity Central Index Key 0001553079
Entity Tax Identification Number 45-4685158
Entity Incorporation, State or Country Code DE
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
City Area Code 212
Local Phone Number 687-8700
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Empire State Realty Op Lp [Member] | Series E S Operating Partnership Units [Member]  
Document Information [Line Items]  
Title of 12(b) Security Series ES Operating Partnership Units
Trading Symbol ESBA
Security Exchange Name NYSEArca
Empire State Realty Op Lp [Member] | Series 60 Operating Partnership Units [Member]  
Document Information [Line Items]  
Title of 12(b) Security Series 60 Operating Partnership Units
Trading Symbol OGCP
Security Exchange Name NYSEArca
Empire State Realty Op Lp [Member] | Series 250 Operating Partnership Units [Member]  
Document Information [Line Items]  
Title of 12(b) Security Series 250 Operating Partnership Units
Trading Symbol FISK
Security Exchange Name NYSEArca

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