Welcome to the Empire State Realty Trust Second Quarter 2026 Earnings Call. At this time, all participants are in a listen-only mode. The question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Suzanne Liu, SVP, Chief Counsel, Real Estate. Thank you. You may begin.

Good afternoon. Welcome to Empire State Realty Trust second quarter 2026 earnings conference call. In addition to the press release distributed yesterday, a quarterly supplemental package with further detail on our results and our latest investor presentation were posted in the investors section of the company's website at ESRTREIT.com. During today's call, management's prepared remarks and responses to questions may include forward-looking statements within the meaning of applicable securities laws. These statements reflect management's current views and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. Empire State Realty Trust assumes no obligation to update any forward-looking statement in the future. We encourage listeners to review the more detailed discussions related to these forward-looking statements in the company's filings with the SEC. During today's call we will discuss certain non-GAAP financial measures such as FFO, Modified and Core FFO, NOI, Same Store Property Cash NOI, EBITDA and Adjusted EBITDA, which we believe are meaningful in evaluating the company's performance. The definitions and reconciliations of these measures, the most directly comparable GAAP measures, are included in their earnings release and supplemental package, each available on the company's website. Now, I will turn the call over to Tony Malkin, our Chairman and Chief Executive Officer.

Good afternoon, everyone. Yesterday, we reported ESRT's second quarter results. We delivered strong performance across the property portfolio, which represents approximately 80% of our NOI. Office leasing accelerated from the first quarter as we converted our pipeline into executed leases. Our retail portfolio was highly leased, and our multifamily properties delivered solid growth. We remain active on transactions. During the quarter, we completed the once-in-a-lifetime opportunity to acquire the land under 111 West 33rd Street and 1400 Broadway and executed on the sale of 250 West 57th Street, the proceeds from which we swapped into the prior purchase of 130 Mercer. Against excellent leasing in our property portfolio, the Empire State Building Observation Deck weighed on performance. In our press release, we gave an updated FFO range under an assumption there is no improvement to current visitation levels, but it utilizes $55 million of NOI for the Observation Deck for full year 2026. I'll spend a few minutes on our Observation Deck business, then get to our strong leasing. During our first quarter call, we called out softer visitation amidst today's geopolitical environment and K-shaped consumer economy, and stated it was premature to alter guidance based upon performance in our seasonally lightest quarter. We did say we would reassess our outlook after six months of results. In our NAIRIT meetings and updated presentation we shared, that softer visitation persisted through the second quarter. The Empire State Building remains the world's most famous building and its brand is undiminished. Our iconic Empire State Building Observation Deck remains a world-class attraction with absolute top-of-sector customer reviews. The Empire State Building Observation Deck was ranked number one as an attraction in the U.S. by TripAdvisor last year, and we had 326 billion global media impressions. We remain the international symbol of New York City. The path ahead is to convert our international brand to revenues amidst the following changes in the market. Historically, we have relied on international visitors. In the past, more than 60% of our visitors were international. Last week, in which we had our second highest visitor numbers of 2026, more than 60% of our visitors were domestic. While not as high a number for the year to date, the shift is definitely to a majority of domestic visitors. The past program channel that has been a source of significant visitor traffic to us has experienced significant headwinds. Historically, these past programs have been largely international and specifically with the international budget-conscious traveler. One past program operator went out of business in 2025. From 2024 year to date to 2026 year to date, we have seen a 45% decline in past program visitors. While all attractions have experienced reduced visitorship in 2026, our drop compared to the market in general is larger due to our prior dominance with past programs and their international presence. And these, in fact, may be tailwinds in the future. The competitive environment with other observation decks and alternatives is also a factor. We began a total reevaluation of our observatory business model and execution early in the first quarter in anticipation that market conditions may continue to work against our historic customer sourcing mix. With our team and logical partners, this is a fresh channel-by-channel approach. Part of that is the shift from traditional search engine to AI search. This is ongoing work, and we have adjusted our online presence to accommodate the impacts of this shift. Some of our actions have already produced positive results. historically our operational costs have been relatively fixed and made tremendous operating leverage with increased visitors and revenue at the same time we will reinvest to strengthen the business and monetize on the strong brand and operations over the long term we've remained confident in the long-term value of our iconic asset let me turn to our real estate business. The Manhattan office leasing market remains healthy for our top-of-tier product. Tenant demand remains broad-based and resilient. Availability of high-quality space remains constrained, and there is no new construction on our price point. These dynamics continue to support strong leasing fundamentals for our portfolio. Our commercial portfolio was 94.9% leased at quarter end, and we expect occupancy gains for the year. We achieved our 20th consecutive quarter of positive mark-to-market spreads within our Manhattan office portfolio, which reflects sustained demand for our best-in-class assets. Our portfolio remains well-positioned to deliver strong operating results. Brian will discuss our and his significant leasing accomplishments in the second quarter. ESRT has maintained a leadership position in sustainability for more than a decade. Our focus remains on measurable business outcomes that produce viable outcomes. Sustainability remains an important differentiator that attracts tenants and supports retention, renewals, and expansions across our portfolio. Across the organization, we remain laser-focused on four priorities. Lease space, optimize observation deck, and Empire State building brand cash flow, maintain our balance sheet, and achieve our sustainability goals. These priorities guide every decision, and we make and align directly with our objectives to drive long-term cash flow growth and value creation. Christina, Ryan, and Steve will provide additional detail on our results in Outlook. Christina?

Thanks, Tony. I'll provide some comments on our recent transaction activity including the sale of 250 West 57th Street and the acquisition of land beneath two Broadway campus properties. Our capital allocation strategy is focused on value creation and long-term cash flow per share even when at times individual transactions are not immediately accretive to earnings. Our second quarter activity reflects that disciplined approach. During the quarter we completed the sale 250 West 57th Street for $275 million, which includes the buyer's assumption of $180 million of mortgage debt. The disposition effectively recycled capital into our prior acquisition of 130 Mercer Street in Soho, executed in December 2025 without the recognition of a taxable gain. Also in the second quarter, we executed on the unique opportunity to acquire the land beneath 111 West 33rd Street and 1400 Broadway for an aggregate 110 million dollars or approximately 65 dollars per square foot. The acquired ground leases carried below market annual rent of 1.4 million which applies a sub 2% cap rate. If we include below market rent amortization the implied cap rate is just under 7% which better illustrates what the cap rate would be on rents that are closer to market. While this transaction reduces our FFO, it creates a permanent and material increase in the value of our real estate given the substantial difference in valuations and exit cap rates for owned real estate versus leasehold assets. Shifting to our balance sheet, subsequent to quarter end, we announced a new $245 million unsecured delayed broad term loan that matures in 2032. Proceeds are expected to be drawn in January 2027 and used to repay existing debt, including our line of credit. We remain disciplined in our proactive approach to balance sheet management. We maintain ample liquidity, a well-laddered debt maturity schedule, and have no unaddressed debt maturities until January 2028. We maintain a wall position and flexible balance sheet and predominantly unencumbered portfolio that provides substantial optionality. At the end of the second quarter, our leverage was approximately 6.6 times net debt to trailing 12-month adjusted EBITDA. Against the backdrop of a healthy transaction market, we continue to underwrite opportunities across New York City office, retail, and multifamily, evaluate strategic capital recycling opportunities that enhance long-term cash flow and assess opportunistic share repurchases. In each instance, our evaluation is guided by whether the transaction creates long-term value per share. New York City's enduring strength is rooted in its property fundamentals and ESRT owns high-quality New York City real estate aligned with the city's live, work, play, and visit demand drivers.

We continue to look for ways to further enhance the quality of our portfolio and grow cash flow through disciplined value-driven capital allocation with that I'll turn the call to Ryan to review our leasing activity thanks Christina and good afternoon everyone in the second quarter leasing performance was strong volume was high as we signed 382,000 square feet which includes over 250,000 square feet of new leases our highest level since the fourth quarter of 2021. Our lease percentage increased to 94.9%, up from 93.8% in the first quarter on a comparable basis excluding 250 West 57th Street from both periods. This demonstrates strong tenant demand for our top-of-tier portfolio, and we remain confident in our year-end occupancy guidance of 90 to 92%. In the second quarter, we achieved mark-to-market spreads of 17.8% in Manhattan office, our 20th consecutive quarter of positive spreads, which underscores our sustained pricing power. Tenants continue to make long-term commitments to us, as highlighted by our average lease duration on new leases of 12 years, which includes United Talent Agency's 16-year office lease at the Empire State Building. The United Talent Agency's 101,000-square-foot lease across four full floors addresses our largest expiration this year of approximately 70,000 square feet, where the existing tenant is expected to vacate in October. Other notable leases signed during the quarter include a 29,000-square-foot new office lease with infinium wall systems for the duplex penthouse at 1359 broadway a 26 000 square foot new office lease with instacart at 111 west 33rd street the building is now 100 leased as of july a 12 000 square foot full floor new office lease with landmark landmark management at one grand central place which set a record average rent of 89 for a new transaction in the building building, and also a 59,000 square foot renewal office lease with Alfred Dunner at 1333 Broadway. At just under 95% leased, we have less space available to lease. We remain focused on the execution and the creation of opportunities within our portfolio. At the Empire State Building, we have one full floor available, and we will look to continue to increase rents. At One Grand Central Place, we just launched our base block space to the market, an 80,000-square-foot duplex with a private terrace that overlooks the Vanderbilt Plaza. We expect to see strong tenant demand given its unique attributes, in-building access to Grand Central Terminal, and the lack of supply for competitive large, contiguous space in the market today. At 130 Mercer, our capital improvement program is underway and we are in active discussions for the remaining two full floors left to lease. Our pipeline of leases in negotiation remains healthy at 200,000 square feet. In today's bifurcated office market of have and have-nots, ESRT remains firmly in the have category. Demand continues to concentrate in high quality, modernized, amenitized, transit-oriented buildings owned by well-capitalized landlords with proven operating platforms. Our best-in-class portfolio enables us to capture this demand as reflected in our strong results. New York City's leasing market remains strong and provides a favorable backdrop for execution, with demand broad-based across finance, professional services, TAMI, and consumer products. Lastly, our multifamily portfolio continues to perform well. Net rents increased 8% and our portfolio is almost 98% occupied. Thank you. I'll now turn the call over to Steve. Steve?

Thanks Ryan. For the second quarter of 2026, we reported core FFO of 21 cents per diluted share. Same store property cash NOI, excluding lease termination fees, increased 3.3% year over year. The improvement is primarily attributed to the receipt of approximately $4 million related to prior period real estate tax abatements. Adjusted for non-recurring items, same store property cash NOI was off 3.2%. This primarily reflects increases in free rent and operating expenses, partially offset by higher tenant reimbursement income. Our observation deck generated approximately $12.4 million of NOI during the second quarter, as compared to $24.1 million in prior year period, with revenue of $24.2 million and expenses of $11.8 million. Visitation was lowered by approximately 28.5% year-over-year. Revenue per capita increased by approximately 1.6% year-over-year after the exclusion of gift shop license fees. Turning to funds available for distribution, core FADs for the second quarter was approximately $16.2 million, up from $11.9 million in the prior year period. This improvement reflects FAD CapEx savings of approximately $14 million year-over-year, due in part to reduced capital requirements for our recycled portfolio and is also attributable to the significant lease-up we executed since the fourth quarter of 2021. Together, this helped drive our commercial portfolio lease percentage to 94.9%. As a reminder, that leasing velocity was accompanied by elevated levels of FAD CapEx in 2024 and early 2025. Lastly, our 2026 core FFO range is now 75 to 79 cents. Given the uncertain operating environment and limited visibility into near-term performance trends for the observation deck, we utilized $55 million of NOI, a level that assumes no improvement to current visitation levels and expenses similar to the first half of this year. This represents a change to core FFO of 13 cents relative to our prior guidance, which is partially mitigated by lower income taxes, higher non-cash rent, and real estate tax abatements. For our commercial portfolio, we assume year-end occupancy of 90 to 92 percent, which is unchanged from our prior guidance. Our assumption for same-store property cash NOI growth of negative 1.5 percent to positive 2 percent is unchanged and continues to include a 270 basis point impact from temporary downtime time associated with the FDIC expiration, which has been released. We expect G&A to decline to approximately $17 million per quarter in the second half of 2026, which is consistent with our prior guidance of a 5-10% reduction in run rate G&A by the end of this year. This concludes our prepared remarks. I'll now turn the call back to the operator to begin the Q&A session.

Thank you. We'll now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 to remove your question from the queue. The participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for your questions. Our first questions come from the line of John Kim with BMO Capital Markets. Please proceed with your questions.

Thank you. on the observatory. I just wanted to ask if you could separate what you think