Empire State Realty Trust, Inc 8-K, filed Oct 25, 2023

Empire State Realty Trust, Inc. (ESRT)

8-K 2023-10-25 For: 2023-10-25

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Added on April 08, 2026

About this 8-K

Empire State Realty Trust, Inc filed this 8-K on October 25, 2023.

Items reported

Item 2.02: Financial results
Item 7.01: Regulation FD disclosure
Item 9.01: Financial statements and exhibits

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Maryland	001-36105	37-1645259
(State or other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)


Delaware	001-36106	45-4685158
(State or other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)


111 West 33 rd Street, 12 th Floor New York, New York				10120
(Address of Principal Executive Offices)				(Zip Code)


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.


Exhibit No.		Description

99.1		Press Release announcing financial results for the third quarter 2023

99.2		Supplemental report

104		Cover Page Interactive File (the cover page tags are embedded within the Inline XBRL document).


	EMPIRE STATE REALTY TRUST, INC.
	(Registrant)

Date: October 25, 2023	By:	/s/ Christina Chiu
	Name:	Christina Chiu
	Title:	Executive Vice President, Chief Operating Officer and Chief Financial Officer


	EMPIRE STATE REALTY OP, L.P.
	(Registrant)

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

Date: October 25, 2023	By:	/s/ Christina Chiu
	Name:	Christina Chiu
	Title:	Executive Vice President, Chief Operating Officer and Chief Financial Officer


	September 30, 2023			June 30, 2023			September 30, 2022
Percent occupied:
Total commercial portfolio		87.0	%		86.8	%		84.2	%
Total office		86.7	%		86.5	%		84.0	%
Manhattan office		87.8	%		87.6	%		84.7	%
GNYMA office¹		79.3	%		79.2	%		80.7	%
Total retail²		90.4	%		90.7	%		86.4	%

Percent leased (includes signed leases not commenced):
Total commercial portfolio		90.5	%		90.3	%		88.5	%
Total office		90.5	%		90.2	%		88.3	%
Manhattan office		91.9	%		91.6	%		89.4	%
GNYMA office¹		79.9	%		80.4	%		82.8	%
Total retail²		91.5	%		91.6	%		91.9	%
Total multifamily portfolio		97.1	%		97.4	%		98.4	%


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		20		245,292	$	66.71	$	60.28		10.7	%
Retail		1		3,187	$	169.44	$	169.31		0.1	%
Total Overall		21		248,479	$	68.03	$	61.68		10.3	%


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		8		78,305	$	65.59	$	59.89		9.5	%
Renewal Office		10		157,133	$	68.79	$	61.68		11.5	%
Total Office		18		235,438	$	67.73	$	61.08		10.9	%



Key Assumptions	2023 Updated Guidance (Oct 2023)		2023 Prior Guidance (July 2023)		Comments
Earnings

Core FFO Per Fully Diluted Share		$0.85 to $0.87		$0.83 to $0.86	• Includes $0.04 from multifamily assets

Commercial Property Drivers

Commercial Occupancy at year-end		85% to 87%		85% to 87%

SS Property Cash NOI (excluding lease termination fees)		-2% to -4% from 2022		-3% to -5% from 2022	• Assumes modest revenue growth • Assumes increased building utilization and an ~8% y/y increase in operating expenses and real estate taxes, partially offset by higher tenant expense reimbursements

Observatory Drivers

Observatory NOI		$88M to $96M		$88M to $96M	• Reflects average quarterly expenses of ~$9M


	Low		High
Net Income (Loss) Attributable to Common Stockholders and the Operating Partnership	$	0.23	$	0.25
Add:
Impairment Charge		0.00		0.00
Real Estate Depreciation & Amortization		0.72		0.72
Less:
Private Perpetual Distributions		0.02		0.02
Gain on Disposal of Real Estate, net		0.11		0.11

FFO Attributable to Common Stockholders and the Operating Partnership	$	0.82	$	0.84
Add:
Amortization of Below Market Ground Lease		0.03		0.03

Core FFO Attributable to Common Stockholders and the Operating Partnership	$	0.85	$	0.87


	Three Months Ended September 30,
	2023			2022
Revenues
Rental revenue	$	151,458		$	148,290
Observatory revenue		37,562			33,051
Lease termination fees		—			—
Third-party management and other fees		268			389
Other revenue and fees		2,238			1,982

Total revenues		191,526			183,712
Operating expenses
Property operating expenses		42,817			42,798
Ground rent expenses		2,331			2,331
General and administrative expenses		16,012			15,725
Observatory expenses		9,471			8,516
Real estate taxes		32,014			31,831
Depreciation and amortization		46,624			46,984

Total operating expenses		149,269			148,185

Total operating income		42,257			35,527
Other income (expense):
Interest income		4,462			1,564
Interest expense		(25,382	)		(25,516	)

Income before income taxes		21,337			11,575
Income tax expense		(1,409	)		(1,457	)

Net income		19,928			10,118
Net (income) loss attributable to noncontrolling interests:
Noncontrolling interest in the Operating
Partnership		(7,207	)		(3,560	)
Noncontrolling interests in other partnerships		(111	)		49
Preferred unit distributions		(1,050	)		(1,050	)

Net income attributable to common stockholders	$	11,560		$	5,557

Total weighted average shares
Basic		161,851			162,165

Diluted		266,073			267,121

Earnings per share attributable to common stockholders
Basic	$	0.07		$	0.03

Diluted	$	0.07		$	0.03


	Nine Months Ended September 30,
	2023			2022
Revenues
Rental revenue	$	446,152		$	445,143
Observatory revenue		93,149			73,660
Lease termination fees		—			20,032
Third-party management and other fees		1,076			1,025
Other revenue and fees		6,313			5,908

Total revenues		546,690			545,768
Operating expenses
Property operating expenses		124,380			118,875
Ground rent expenses		6,994			6,994
General and administrative expenses		47,795			45,287
Observatory expenses		25,983			22,507
Real estate taxes		95,292			91,637
Depreciation and amortization		140,312			172,394

Total operating expenses		440,756			457,694

Total operating income		105,934			88,074
Other income (expense):
Interest income		10,396			2,144
Interest expense		(76,091	)		(75,572	)
Gain on disposition of property		29,261			27,170

Income before income taxes		69,500			41,816
Income tax benefit		(923	)		(224	)

Net income		68,577			41,592
Net (income) loss attributable to noncontrolling interests:
Noncontrolling interest in the Operating
Partnership		(25,424	)		(14,865	)
Noncontrolling interests in other partnerships		(69	)		271
Preferred unit distributions		(3,151	)		(3,151	)

Net income attributable to common stockholders	$	39,933		$	23,847

Total weighted average shares
Basic		160,799			166,354

Diluted		265,269			270,966

Earnings per share attributable to common stockholders
Basic	$	0.25		$	0.14

Diluted	$	0.25		$	0.14


	September 30,			December 31,
	2023			2022
Assets
Commercial real estate properties, at cost	$	3,620,097		$	3,551,449
Less: accumulated depreciation		(1,217,967	)		(1,137,267	)

Commercial real estate properties, net		2,402,130			2,414,182
Assets held for sale		—			35,538
Cash and cash equivalents		353,999			264,434
Restricted cash		66,954			50,244
Tenant and other receivables		37,651			24,102
Deferred rent receivables		254,233			240,188
Prepaid expenses and other assets		82,918			98,114
Deferred costs, net		175,488			187,570
Acquired below market ground leases, net		323,199			329,073
Right of use assets		28,496			28,670
Goodwill		491,479			491,479

Total assets	$	4,216,547		$	4,163,594

Liabilities and equity
Mortgage notes payable, net	$	878,757		$	883,705
Senior unsecured notes, net		973,819			973,659
Unsecured term loan facility, net		389,158			388,773
Accounts payable and accrued expenses		83,299			80,729
Acquired below market leases, net		14,703			17,849
Ground lease liabilities		28,496			28,670
Deferred revenue and other liabilities		75,688			76,091
Tenants’ security deposits		39,307			25,084
Liabilities related to assets held for sale		—			5,943

Total liabilities		2,483,227			2,480,503
Total equity		1,733,320			1,683,091

Total liabilities and equity	$	4,216,547		$	4,163,594


		Third Quarter 2023


	*Page*
*Table of Contents*
*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


Anthony E. Malkin		Chairman, President 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


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) 850-2600


Bank of America Merrill Lynch	Camille Bonnel	(416) 369-2140	camille.bonnel@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


	September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022
Assets
Commercial real estate properties, at cost:
Land	$	366,364		$	361,497		$	361,497		$	365,540		$	334,598
Development costs		8,178			8,204			8,178			8,166			8,162
Building and improvements		3,245,555			3,196,181			3,183,615			3,177,743			3,194,787

		3,620,097			3,565,882			3,553,290			3,551,449			3,537,547
Less: accumulated depreciation		(1,217,967	)		(1,180,558	)		(1,162,923	)		(1,137,267	)		(1,159,364	)

Commercial real estate properties, net		2,402,130			2,385,324			2,390,367			2,414,182			2,378,183
Assets held for sale		—			—			35,980			35,538			—
Cash and cash equivalents		353,999			315,357			272,648			264,434			387,248
Restricted cash		66,954			80,451			108,183			50,244			52,567
Tenant and other receivables		37,651			32,901			23,879			24,102			30,547
Deferred rent receivables		254,233			249,881			238,842			240,188			239,750
Prepaid expenses and other assets		82,918			98,986			57,891			98,114			72,905
Deferred costs, net		175,488			176,678			182,367			187,570			188,706
Acquired below-market ground leases, net		323,199			325,157			327,115			329,073			331,030
Right of use assets		28,496			28,554			28,612			28,670			28,725
Goodwill		491,479			491,479			491,479			491,479			491,479

Total assets	$	4,216,547		$	4,184,768		$	4,157,363		$	4,163,594		$	4,201,140

Liabilities and Equity
Mortgage notes payable, net	$	878,757		$	880,592		$	882,142		$	883,705		$	915,202
Senior unsecured notes, net		973,819			973,768			973,714			973,659			973,607
Unsecured term loan facility, net		389,158			389,028			388,901			388,773			388,645
Unsecured revolving credit facility, net		—			—			—			—			—
Accounts payable and accrued expenses		83,299			71,709			71,605			80,729			94,436
Acquired below-market leases, net		14,703			15,280			16,581			17,849			18,897
Ground lease liabilities		28,496			28,554			28,612			28,670			28,725
Deferred revenue and other liabilities		75,688			73,972			76,769			76,091			80,249
Tenants’ security deposits		39,307			40,253			35,111			25,084			27,550
Liabilities related to assets held for sale		—			—			6,862			5,943			—

Total liabilities		2,483,227			2,473,156			2,480,297			2,480,503			2,527,311
Total equity		1,733,320			1,711,612			1,677,066			1,683,091			1,673,829

Total liabilities and equity	$	4,216,547		$	4,184,768		$	4,157,363		$	4,163,594		$	4,201,140


	Three Months Ended
	September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022
Revenues
Rental revenue ⁽¹⁾	$	151,458		$	154,603		$	140,091		$	145,905		$	148,290
Observatory revenue		37,562			33,433			22,154			32,318			33,051
Lease termination fees		—			—			—			—			—
Third party management and other fees		268			381			427			336			389
Other revenue and fees		2,238			2,125			1,950			2,714			1,982

Total revenues		191,526			190,542			164,622			181,273			183,712

Operating expenses
Property operating expenses		42,817			39,519			42,044			39,060			42,798
Ground rent expenses		2,331			2,332			2,331			2,332			2,331
General and administrative expenses		16,012			16,075			15,708			16,478			15,725
Observatory expenses		9,471			8,657			7,855			8,529			8,516
Real estate taxes		32,014			31,490			31,788			31,420			31,831
Depreciation and amortization		46,624			46,280			47,408			44,500			46,984

Total operating expenses		149,269			144,353			147,134			142,319			148,185

Total operating income		42,257			46,189			17,488			38,954			35,527

Other income (expense)
Interest income		4,462			3,339			2,595			2,804			1,564
Interest expense		(25,382	)		(25,405	)		(25,304	)		(25,634	)		(25,516	)
Gain on disposition of property		—			13,565			15,696			6,818			—

Income before income taxes		21,337			37,688			10,475			22,942			11,575
Income tax (expense) benefit		(1,409	)		(733	)		1,219			(1,322	)		(1,457	)

Net income		19,928			36,955			11,694			21,620			10,118
Net (income) loss attributable to noncontrolling interests:
Non-controlling interests in the Operating Partnership		(7,207	)		(14,049	)		(4,168	)		(7,947	)		(3,560	)
Non-controlling interests in other partnerships		(111	)		(1	)		43			(28	)		49
Private perpetual preferred unit distributions		(1,050	)		(1,051	)		(1,050	)		(1,050	)		(1,050	)

Net income attributable to common stockholders	$	11,560		$	21,854		$	6,519		$	12,595		$	5,557

Weighted average common shares outstanding
Basic		161,851			160,028			161,339			161,720			162,165

Diluted		266,073			264,196			265,197			265,370			267,121

Earnings per share attributable to common stockholders
Basic and diluted	$	0.07		$	0.14		$	0.04		$	0.08		$	0.03

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
	September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022
Rental Revenue
Base rent	$	133,228		$	138,808		$	124,782		$	131,745		$	131,800
Billed tenant expense reimbursement		18,230			15,795			15,309			14,160			16,490

Total rental revenue	$	151,458		$	154,603		$	140,091		$	145,905		$	148,290


	Square Feet		Initial Annual Cash Rent		Initial Cash Rent Contributing to Cash NOI in the Following Years
Expected Cash Commencement	Square Feet		Initial Annual Cash Rent		2023		2024		2025		2026		2027
Fourth quarter 2023		208,707		10,006		3,747		10,006		10,006		9,983		9,710
First quarter 2024		197,569		10,835		—		9,949		9,565		9,450		9,450
Second quarter 2024		149,272		11,045		—		7,426		11,045		11,045		11,045
Third quarter 2024		46,817		2,936		—		1,002		2,936		2,936		2,936
Fourth quarter 2024		84,097		4,382		—		732		4,382		4,382		4,382
First quarter 2025		22,632		1,367		—		—		1,229		1,367		1,367
Second quarter 2025		144,031		8,625		—		—		5,633		8,625		8,625
Third quarter 2025		24,640		1,602		—		—		531		1,602		1,602
Fourth quarter 2025		21,262		1,318		—		—		328		1,318		1,318

		899,027	$	52,116	$	3,747	$	29,115	$	45,655	$	50,708	$	50,435

	Incremental Annual		Initial Annual		Initial Cash Rent Contributing to Cash NOI in the Following Years
3Q 2023	Cash Rent⁽²⁾		Cash Rent		2023		2024		2025		2026		2027
Commenced leases in free rent period	$	28,336	$	29,411	$	3,747	$	24,041	$	28,097	$	28,002	$	27,730
Signed leases not commenced		21,803		22,705		—		5,074		17,558		22,706		22,705

	$	50,139	$	52,116	$	3,747	$	29,115	$	45,655	$	50,708	$	50,435


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		2,715,171		83.7	%		90.2	%	$	147,241,340	$	64.82		143
One Grand Central Place	Grand Central		1,241,663		86.1	%		91.5	%		64,712,177		60.54		149
1400 Broadway ⁽⁷⁾	Penn Station -Times Sq. South		917,265		100.0	%		100.0	%		51,514,805		56.16		18
111 West 33rd Street ⁽⁸⁾	Penn Station -Times Sq. South		639,695		95.1	%		95.1	%		39,620,657		65.13		22
250 West 57th Street	Columbus Circle - West Side		472,707		80.6	%		80.6	%		23,984,177		62.97		28
501 Seventh Avenue	Penn Station -Times Sq. South		461,678		88.4	%		88.4	%		20,235,194		49.60		19
1359 Broadway	Penn Station -Times Sq. South		456,004		87.9	%		95.8	%		23,447,971		58.51		32
1350 Broadway ⁽⁹⁾	Penn Station -Times Sq. South		372,939		87.7	%		89.6	%		19,427,209		59.38		52
1333 Broadway	Penn Station -Times Sq. South		296,360		88.8	%		98.8	%		15,472,897		58.77		14

*Office - Manhattan*			7,573,482		87.8	%		91.9	%		405,656,427		61.04		477

*Office - Greater New York Metropolitan Area*
First Stamford Place ⁽¹⁰⁾	Stamford, CT		781,359		79.3	%		80.1	%		26,439,740		42.68		48
Metro Center	Stamford, CT		281,510		79.4	%		79.4	%		12,483,772		55.86		22

*Office - Greater New York Metropolitan Area*			1,062,869		79.3	%		79.9	%		38,923,512		46.17		70

*Total/Weighted Average Office Properties*			8,636,351		86.7	%		90.5	%	$	444,579,939	$	59.36		547

*Retail Properties*
112 West 34th Street ⁽⁸⁾	Penn Station -Times Sq. South		93,057		100.0	%		100.0	%		24,825,569		266.78		4
The Empire State Building	Penn Station -Times Sq. South		90,660		71.9	%		71.9	%		6,984,916		107.20		10
One Grand Central Place	Grand Central		68,733		99.4	%		99.4	%		8,949,972		131.00		13
1333 Broadway	Penn Station -Times Sq. South		67,001		100.0	%		100.0	%		9,966,632		148.75		4
250 West 57th Street	Columbus Circle - West Side		65,526		91.4	%		91.4	%		9,111,860		152.07		7
10 Union Square	Union Square		58,006		91.9	%		91.9	%		8,181,304		153.49		10
1542 Third Avenue	Upper East Side		56,135		100.0	%		100.0	%		2,542,042		45.28		4
1010 Third Avenue	Upper East Side		38,235		100.0	%		100.0	%		3,460,188		90.50		2
501 Seventh Avenue	Penn Station -Times Sq. South		35,859		50.8	%		59.6	%		1,310,333		71.94		5
1350 Broadway ⁽⁹⁾	Penn Station -Times Sq. South		30,710		77.8	%		77.8	%		5,962,833		249.70		5
1359 Broadway	Penn Station -Times Sq. South		29,247		83.0	%		100.0	%		1,647,785		67.87		5
561 10th Avenue	Hudson Yards		28,266		100.0	%		100.0	%		2,007,748		71.03		3
77 West 55th Street	Midtown		25,388		100.0	%		100.0	%		1,978,407		77.93		3
1400 Broadway ⁽⁷⁾	Penn Station -Times Sq. South		17,879		78.2	%		78.2	%		1,538,836		110.07		6
298 Mulberry Street	NoHo		10,365		100.0	%		100.0	%		1,802,507		173.90		1
Williamsburg Retail	Brooklyn		6,538		100.0	%		100.0	%		1,158,422		177.18		3
345 East 94th Street	Upper East Side		3,700		100.0	%		100.0	%		256,327		69.28		1

*Total/Weighted Average Retail Properties*			725,305		90.4	%		91.5	%		91,685,681		139.82		86

*Portfolio Total*			9,361,656		87.0	%		90.5	%		536,265,620	$	65.84		633


	Three Months Ended
	Actual			Forecast ⁽¹⁾			Forecast ⁽¹⁾		Forecast ⁽¹⁾		Forecast ⁽¹⁾			Forecast ⁽¹⁾		Forecast ⁽¹⁾
	September 30, 2023			December 31, 2023			March 31, 2024		June 30, 2024		September 30, 2024			December 31, 2024		Full Year 2024
Total Office and Retail Portfolio ⁽²⁾
Total expirations		112,053			240,471			88,120		125,276		139,332			142,822		495,550
Less: broadcasting		(356	)		(906	)		—		—		(356	)		—		(356	)

Office and retail expirations		111,697			239,565			88,120		125,276		138,976			142,822		495,194

Renewals & relocations ⁽³⁾		36,531			49,286			42,158		23,916		36,939			27,290		130,303
New leases ⁽⁴⁾		—			50,828			8,727		4,115		12,803			—		25,645
Vacates ⁽⁵⁾		75,166			135,822			19,806		70,641		75,236			41,690		207,373
Unknown ⁽⁶⁾		—			3,629			17,429		26,604		13,998			73,842		131,873

Total Office and Retail Portfolio expirations and vacates		111,697			239,565			88,120		125,276		138,976			142,822		495,194

Manhattan Office Portfolio
Total expirations		72,334			216,723			75,001		125,276		117,739			127,970		445,986
Less: broadcasting		(356	)		(906	)		—		—		(356	)		—		(356	)

Office expirations		71,978			215,817			75,001		125,276		117,383			127,970		445,630

Renewals & relocations ⁽³⁾		33,682			28,706			35,307		23,916		36,035			27,290		122,548
New leases ⁽⁴⁾		—			50,828			8,727		4,115		2,998			—		15,840
Vacates ⁽⁵⁾		38,296			135,822			17,059		70,641		64,352			41,690		193,742
Unknown ⁽⁶⁾		—			461			13,908		26,604		13,998			58,990		113,500

Total expirations and vacates		71,978			215,817			75,001		125,276		117,383			127,970		445,630

Greater New York Metropolitan Area Office Portfolio
Office expirations		39,719			7,304			2,849		—		20,689			10,033		33,571

Renewals & relocations ⁽³⁾		2,849			4,136			—		—		—			—		—
New leases ⁽⁴⁾		—			—			—		—		9,805			—		9,805
Vacates ⁽⁵⁾		36,870			—			—		—		10,884			—		10,884
Unknown ⁽⁶⁾		—			3,168			2,849		—		—			10,033		12,882

Total expirations and vacates		39,719			7,304			2,849		—		20,689			10,033		33,571

Retail Portfolio
Retail expirations		—			16,444			10,270		—		904			4,819		15,993

Renewals & relocations ⁽³⁾		—			16,444			6,851		—		904			—		7,755
New leases ⁽⁴⁾		—			—			—		—		—			—		—
Vacates ⁽⁵⁾		—			—			2,747		—		—			—		2,747
Unknown ⁽⁶⁾		—			—			672		—		—			4,819		5,491

Total expirations and vacates		—			16,444			10,270		—		904			4,819		15,993


					Percent of
			Rentable		Portfolio								Annualized
	Number		Square		Rentable					Percent of			Rent Per
	of Leases		Feet		Square Feet			Annualized		Annualized			Rentable
	Expiring ⁽¹⁾		Expiring ⁽²⁾		Expiring			Rent ⁽³⁾		Rent			Square Foot
*Total Office and Retail Lease Expirations*
Available		—		885,865		9.5	%	$	—		0.0	%	$	—
Signed leases not commenced		22		330,940		3.5	%		—		0.0	%		—
3Q 2023 ⁽⁴⁾		11		70,405		0.7	%		3,458,071		0.7	%		49.12
4Q 2023		23		205,619		2.2	%		11,950,033		2.2	%		58.12

Total 2023		34		276,024		2.9	%		15,408,105		2.9	%		55.82
1Q 2024		18		88,120		0.9	%		5,576,811		1.0	%		63.29
2Q 2024		14		125,276		1.3	%		6,607,607		1.2	%		52.74
3Q 2024		18		139,332		1.5	%		7,777,964		1.5	%		55.82
4Q 2024		37		142,822		1.5	%		8,714,672		1.6	%		61.02

Total 2024		87		495,550		5.3	%		28,677,055		5.3	%		57.87
2025		82		593,727		6.3	%		40,286,653		7.5	%		67.85
2026		73		639,472		6.8	%		37,673,908		7.0	%		58.91
2027		86		705,684		7.5	%		45,126,913		8.4	%		63.95
2028		61		943,067		10.1	%		52,143,294		9.7	%		55.29
2029		50		981,427		10.5	%		72,843,205		13.6	%		74.22
2030		37		738,623		7.9	%		49,533,321		9.2	%		67.06
2031		24		188,921		2.0	%		22,238,859		4.1	%		117.72
2032		28		368,664		3.9	%		26,192,204		4.9	%		71.05
2033		27		329,695		3.5	%		20,839,859		3.9	%		63.21
Thereafter		44		1,883,997		20.3	%		125,302,243		23.5	%		66.51

Total		655		9,361,656		100.0	%	$	536,265,618		100.0	%	$	65.84

*Manhattan Office Properties ⁽⁵⁾*
Available		—		610,897		8.1	%	$	—		0.0	%	$	—
Signed leases not commenced		17		316,437		4.2	%		—		0.0	%		—
3Q 2023 ⁽⁴⁾		6		40,241		0.5	%		1,569,264		0.4	%		39.00
4Q 2023		20		186,007		2.5	%		11,459,434		2.8	%		61.61

Total 2023		26		226,248		3.0	%		13,028,698		3.2	%		57.59
1Q 2024		14		75,001		1.0	%		4,872,070		1.2	%		64.96
2Q 2024		14		125,276		1.7	%		6,607,607		1.6	%		52.74
3Q 2024		14		117,739		1.6	%		6,998,777		1.7	%		59.44
4Q 2024		35		127,970		1.7	%		7,656,567		1.9	%		59.83

Total 2024		77		445,986		6.0	%		26,135,021		6.4	%		58.60
2025		64		489,964		6.5	%		31,950,664		7.9	%		65.21
2026		57		485,929		6.4	%		29,345,047		7.2	%		60.39
2027		70		592,565		7.8	%		34,776,591		8.6	%		58.69
2028		45		851,089		11.2	%		47,037,814		11.6	%		55.27
2029		36		742,585		9.8	%		44,910,273		11.1	%		60.48
2030		26		592,227		7.8	%		36,761,982		9.1	%		62.07
2031		12		86,541		1.1	%		6,064,493		1.5	%		70.08
2032		20		334,668		4.4	%		23,073,788		5.7	%		68.95
2033		14		141,583		1.9	%		8,562,092		2.1	%		60.47
Thereafter		30		1,656,763		21.8	%		104,009,962		25.6	%		62.78

Total Manhattan office properties		494		7,573,482		100.0	%	$	405,656,425		100.0	%	$	61.04


				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		12.9 years		501,409		5.4	%	$	33,465,435		6.2	%
2. Flagstar Bank	1333 & 1400 Broadway		Mar. 2025 - Aug. 2039		15.3 years		326,121		3.5	%		19,075,191		3.6	%
3. Centric Brands Inc.	Empire State Building		Oct. 2028		5.1 years		221,365		2.4	%		11,952,833		2.2	%
4. PVH Corp.	501 Seventh Avenue		Oct. 2028		5.1 years		237,281		2.5	%		11,411,648		2.1	%
5. Sephora	112 West 34th Street		Jan. 2029		5.3 years		11,334		0.1	%		10,533,585		2.0	%
6. Target	112 West 34th St., 10 Union Sq.		Jan 2038		14.3 years		81,340		0.9	%		9,341,224		1.7	%
7. Li & Fung	1359 Broadway, ESB		Oct. 2023 - Oct. 2028		4.1 years		173,273		1.9	%		9,334,187		1.7	%
8. Coty Inc.	Empire State Building		Jan. 2030		6.3 years		156,187		1.7	%		8,497,458		1.6	%
9. Macy’s	111 West 33rd Street		May 2030		6.7 years		131,117		1.4	%		8,451,562		1.6	%
10. Urban Outfitters	1333 Broadway		Sept. 2029		6.0 years		56,730		0.6	%		7,996,742		1.5	%
11. Footlocker	112 West 34th Street		Sept. 2031		8.0 years		34,192		0.4	%		7,745,828		1.4	%
12. Federal Deposit Insurance Corp.	Empire State Building		Dec. 2025		2.3 years		119,226		1.3	%		7,578,004		1.4	%
13. HNTB Corporation	Empire State Building		Feb. 2029		5.4 years		105,143		1.1	%		7,000,733		1.3	%
14. Institutional Capital Network, Inc.	One Grand Central Place		Dec. 2023 - Oct. 2035		10.8 years		94,331		1.0	%		6,335,770		1.2	%
15. The Michael J. Fox Foundation	111 West 33rd Street		Nov. 2029		6.2 years		86,492		0.9	%		6,267,495		1.2	%
16. Shutterstock	Empire State Building		Apr. 2029		5.6 years		104,386		1.1	%		6,096,096		1.1	%
17. Fragomen	1400 Broadway		Feb. 2035		11.4 years		107,680		1.2	%		5,959,656		1.1	%
18. Burlington Merchandising Corp.	1400 Broadway		Jan 2038		14.3 years		102,898		1.1	%		5,932,832		1.1	%
19. ASCAP	250 West 57th Street		Aug. 2034		10.9 years		87,943		0.9	%		5,384,628		1.0	%
20. Duane Reade	ESB, 1350 Broadway		May 2025 - Sept. 2027		2.8 years		39,142		0.4	%		4,897,282		0.9	%

Total							2,777,590		29.7	%	$	193,258,189		35.9	%


	Three Months Ended
Capital expenditures	September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022		September 30, 2022
Tenant improvements - first generation	$	—	$	—	$	—	$	6,024	$	1,493
Tenant improvements - second generation		18,047		19,823		23,919		8,867		20,329
Leasing commissions - second generation		2,522		4,468		4,114		4,721		10,182
Building improvements - first generation		—		—		—		2,530		868
Building improvements - second generation		12,651		12,814		12,611		6,837		7,986

Total	$	33,220	$	37,105	$	40,644	$	28,979	$	40,858


Leasing Opportunity - Inventory of Current Vacant Space as of September 30, 2023 (in square feet) ^{(1) (2)}

Total Portfolio vacant space			1,217,000

Signed leases not commenced (“SLNC”):
Manhattan Office Properties SLNC			317,000
Greater New York Office Properties SLNC			6,000
Retail Properties SLNC			8,000
Greater New York Office Properties			214,000
Retail Properties			61,000
Manhattan Office Properties			537,000
Manhattan Office Properties off market			29,000
Manhattan Office Properties other			45,000

Total			1,217,000


			Three Months Ended
Observatory NOI	Twelve Months to Date		September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022
Observatory revenue ⁽¹⁾	$	125,467	$	37,562		$	33,433		$	22,154		$	32,318		$	33,051
Observatory expenses		34,512		9,471			8,657			7,855			8,529			8,516

NOI		90,955		28,091			24,776			14,299			23,789			24,535
Intercompany rent expense ⁽²⁾		77,173		22,113			20,942			15,914			18,204			19,072

NOI after intercompany rent	$	13,782	$	5,978		$	3,834		$	(1,615	)	$	5,585		$	5,463

Observatory Metrics
Number of visitors ⁽³⁾				743,000			666,000			443,000			660,000			687,000
Change in visitors year over year				8.2	%		16.2	%		64.7	%		83.3	%		169.4	%
Number of bad weather days (“BWD”) ⁽⁴⁾				10			12			15			20			7


	Three Months Ended
Reconciliation of Net Income to FFO, Modified FFO and Core FFO	September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022
Net Income	$	19,928		$	36,955		$	11,694		$	21,620		$	10,118
Non-controlling interests in other partnerships		(111	)		(1	)		43			(28	)		49
Preferred unit distributions		(1,050	)		(1,051	)		(1,050	)		(1,050	)		(1,050	)
Real estate depreciation and amortization		45,174			44,887			46,024			43,076			45,461
Gain on disposition of property		—			(13,565	)		(15,696	)		(6,818	)		—

FFO attributable to common stockholders and the Operating Partnership		63,941			67,225			41,015			56,800			54,578
Amortization of below-market ground lease		1,957			1,958			1,958			1,958			1,957

Modified FFO attributable to common stockholders and the Operating Partnership		65,898			69,183			42,973			58,758			56,535

Core FFO attributable to common stockholders and the Operating Partnership	$	65,898		$	69,183		$	42,973		$	58,758		$	56,535

Total weighted average shares and Operating Partnership units
Basic		262,756			262,903			264,493			263,759			266,035

Diluted		266,073			264,196			265,197			265,370			267,121

FFO attributable to common stockholders and the Operating Partnership per share and unit
Basic	$	0.24		$	0.26		$	0.16		$	0.22		$	0.21

Diluted	$	0.24		$	0.25		$	0.15		$	0.21		$	0.20

Modified FFO attributable to common stockholders and the Operating Partnership per share and unit
Basic	$	0.25		$	0.26		$	0.16		$	0.22		$	0.21

Diluted	$	0.25		$	0.26		$	0.16		$	0.22		$	0.21

Core FFO attributable to common stockholders and the Operating Partnership per share and unit
Basic	$	0.25		$	0.26		$	0.16		$	0.22		$	0.21

Diluted	$	0.25		$	0.26		$	0.16		$	0.22		$	0.21

Reconciliation of Core FFO to Core FAD
Core FFO	$	65,898		$	69,183		$	42,973		$	58,758		$	56,535
Add:
Amortization of deferred financing costs		1,089			1,088			1,089			1,096			1,156
Non-real estate depreciation and amortization		1,298			1,248			1,237			1,285			1,303
Amortization of non-cash compensation expense		4,989			5,369			4,375			5,412			5,374
Amortization of loss on interest rate derivative		1,527			1,527			1,527			1,525			1,524
Deduct:
Straight-line rental revenues		(5,015	)		(11,859	)		(556	)		(6,029	)		(7,341	)
Above/below-market rent revenue amortization		(554	)		(675	)		(703	)		(622	)		(677	)
Corporate capital expenditures		(90	)		(225	)		(270	)		(162	)		(242	)
Tenant improvements - second generation		(18,047	)		(19,823	)		(23,919	)		(8,867	)		(20,329	)
Building improvements - second generation		(12,651	)		(12,814	)		(12,611	)		(6,837	)		(7,986	)
Leasing commissions - second generation		(2,522	)		(4,468	)		(4,114	)		(4,721	)		(10,182	)

	$	35,922		$	28,551		$	9,028		$	40,838		$	19,135

Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Net income	$	19,928		$	36,955		$	11,694		$	21,620		$	10,118
Interest expense		25,382			25,405			25,304			25,634			25,516
Income tax expense (benefit)		1,409			733			(1,219	)		1,322			1,457
Depreciation and amortization		46,624			46,280			47,408			44,500			46,984

EBITDA		93,343			109,373			83,187			93,076			84,075
Gain on disposition of property		—			(13,565	)		(15,696	)		(6,818	)		—

Adjusted EBITDA	$	93,343		$	95,808		$	67,491		$	86,258		$	84,075


	September 30, 2023										June 30, 2023
				ESRT		Weighted Average								ESRT		Weighted Average
				Pro-rata		Interest			Maturity					Pro-rata		Interest			Maturity
Debt Summary	Balance			Share		Rate			(Years)		Balance			Share		Rate			(Years)
Mortgage debt	$	893,945		$	875,775		3.77	%		6.3	$	896,361		$	878,135		3.77	%		6.5
Senior unsecured notes		975,000			975,000		4.05	%		6.4		975,000			975,000		4.05	%		6.7
Unsecured term loan facilities ⁽¹⁾		390,000			390,000		3.93	%		2.3		390,000			390,000		3.93	%		2.5

Total fixed rate debt		2,258,945			2,240,775		3.94	%		5.7		2,261,361			2,243,135		3.94	%		5.9

Unsecured term loan facilities ⁽²⁾		—			—		—			—		—			—		—			—
Unsecured revolving credit facilities		—			—		—			1.5		—			—		—			1.8

Total variable rate debt		—			—		—			1.5		—			—		—			1.8

Total debt		2,258,945			2,240,775		3.94	%		5.7		2,261,361			2,243,135		3.94	%		5.9

Deferred financing costs, net		(10,052	)									(10,619	)
Debt discount		(7,159	)									(7,354	)

Total	$	2,241,734									$	2,243,388


Available Capacity	Facility		Outstanding at September 30, 2023		Letters of Credit		Available Capacity
Unsecured revolving credit facility ⁽³⁾	$	850,000	$	—	$	—	$	850,000


	Stated	Effective
	Interest	Interest			Principal			ESRT Pro-rata Share					Maturity
	Rate (%)	Rate (%) ⁽¹⁾			Balance			Percent			Amount		Date		Amortization
Metro Center	3.59%		3.67	%	$	80,710			100	%	$	80,710		11/5/2024		30 years
10 Union Square	3.70%		3.97	%		50,000			100	%		50,000		4/1/2026		Interest only
1542 Third Avenue	4.29%		4.53	%		30,000			100	%		30,000		5/1/2027		Interest only
First Stamford Place ⁽²⁾	4.28%		4.73	%		176,359			100	%		176,359		7/1/2027		5 years interest only; 30 years thereafter
1010 Third Avenue & 77 West 55th St.	4.01%		4.21	%		35,179			100	%		35,179		1/5/2028		30 years
250 West 57th Street	2.83%		3.21	%		180,000			100	%		180,000		12/1/2030		Interest only
1333 Broadway	4.21%		4.29	%		160,000			100	%		160,000		2/5/2033		Interest only
345 East 94th Street - Series A ⁽⁴⁾	70% of SOFR plus 0.95%		3.56	%		43,600			90	%		39,240		11/1/2030		Interest only
345 East 94th Street - Series B ⁽⁴⁾	SOFR plus 2.24%		3.56	%		7,378			90	%		6,640		11/1/2030		30 years
561 10th Avenue - Series A ⁽⁴⁾	70% of SOFR plus 1.07%		3.85	%		114,500			90	%		103,050		11/1/2033		Interest only
561 10th Avenue - Series B ⁽⁴⁾	SOFR plus 2.45%		3.85	%		16,219			90	%		14,597		11/1/2033		30 years


Total fixed rate mortgage debt						893,945						875,775
Unsecured term loan facility ⁽³⁾	SOFR plus 1.20%		4.22	%		215,000			100	%		215,000		3/19/2025		Interest only
Unsecured revolving credit facility ⁽³⁾	SOFR plus 1.30%		—			—			100	%		—		3/31/2025		Interest only
Unsecured term loan facility ⁽³⁾	SOFR plus 1.50%		4.51	%		175,000			100	%		175,000		12/31/2026		Interest only
Senior unsecured notes:
Series A	3.93%		3.96	%		100,000			100	%		100,000		3/27/2025		Interest only
Series B	4.09%		4.12	%		125,000			100	%		125,000		3/27/2027		Interest only
Series C	4.18%		4.21	%		125,000			100	%		125,000		3/27/2030		Interest only
Series D	4.08%		4.11	%		115,000			100	%		115,000		1/22/2028		Interest only
Series E	4.26%		4.27	%		160,000			100	%		160,000		3/22/2030		Interest only
Series F	4.44%		4.45	%		175,000			100	%		175,000		3/22/2033		Interest only
Series G	3.61%		4.89	%		100,000			100	%		100,000		3/17/2032		Interest only
Series H	3.73%		5.00	%		75,000			100	%		75,000		3/17/2035		Interest only

Total / weighted average debt	3.94%		4.20	%		2,258,945					$	2,240,775

Deferred financing costs, net						(10,052	)
Debt discount						(7,159	)

Total					$	2,241,734


Year	Maturities ⁽¹⁾		Amortization		Total			ESRT Pro-rata Share		Percentage of Total Debt			Weighted Average Interest Rate of Maturing Debt
2023	$	—	$	1,947	$	1,947		$	1,888		0.1	%		n/a
2024		77,675		8,861		86,536			86,288		3.9	%		3.59	%
2025		315,000		6,893		321,893			321,621		14.3	%		3.86	%
2026		225,000		7,330		232,330			232,033		10.3	%		3.98	%
2027		319,000		6,461		325,461			325,136		14.5	%		4.21	%
2028		146,092		3,556		149,648			149,292		6.7	%		4.06	%
2029		—		3,988		3,988			3,589		0.2	%		n/a
2030		508,600		4,413		513,013			508,212		22.7	%		3.67	%
2031		—		3,283		3,283			2,955		0.1	%		n/a
2032		100,000		3,591		103,591			103,232		4.6	%		4.06	%
Thereafter		514,007		3,248		517,255			506,530		22.6	%		4.13	%

Total debt	$	2,205,374	$	53,571		2,258,945		$	2,240,775		100.0	%		3.94	%

Deferred financing costs, net						(10,052	)
Debt discount						(7,159	)

Total					$	2,241,734


Year	1350 Broadway ⁽⁴⁾		1400 Broadway ⁽⁵⁾		111 West 33rd Street ⁽⁶⁾		Total
2023	$	27	$	169	$	184	$	380
2024		108		675		735		1,518
2025		108		675		735		1,518
2026		93		675		735		1,503
2027		72		675		735		1,482
Thereafter		1,656		24,300		36,321		62,277

	$	2,064	$	27,169	$	39,445	$	68,678