Share Spring is in Full Bloom at the Empire State Building with New Festive Experiences, Sweet Treats, and Seasonal Tower Lighting NEW YORK--(BUSINESS WIRE)--Spring is in full swing at the "World's Most Famous Building.†The Empire State Building (ESB) today announced a vibrant lineup of spring events in NYC, which include special experiences, treat pop-ups, and an iconic tower lighting that captures the joy and color of the beautiful season. "The Empire State Building Observation Deck has transformed into ...

Core Insights - The company reported strong performance in 2025, achieving 93.6% occupancy in its commercial portfolio and leasing over 1 million square feet, marking four consecutive years of occupancy growth and positive rent spreads in New York City [1] - The Empire State Building Observatory maintained its market leadership despite a decline in international tourist visitation, demonstrating resilience through effective cost management and growth in direct sales [2] - The company executed $417 million in all-cash transactions for high-quality office and retail assets, enhancing cash flow and completing the exit from suburban commercial assets [3] - The company has a strong balance sheet that provides flexibility for leasing and opportunistic transactions, while also focusing on sustainability and measurable business results [4]

Summary of Empire State Realty Trust (NYSE: ESRT) 2026 Conference Call Company Overview - **Company**: Empire State Realty Trust (ESRT) - **Industry**: Real Estate Investment Trust (REIT), focusing on commercial properties in New York City Key Points Financial Performance and Portfolio Management - In 2025, ESRT achieved a commercial portfolio occupancy rate of **93.6%**, leasing over **1 million sq ft** during the year, marking four consecutive years of occupancy growth and positive rent spreads in New York City [1][2] - The company closed **$417 million** in all-cash transactions for high-quality office and retail assets, enhancing cash flow and exiting suburban commercial assets without recognizing taxable gains [2][3] - ESRT's balance sheet remains strong, providing flexibility for leasing and opportunistic transactions [2][3] Market Position and Growth Strategy - The Empire State Building Observatory continues to be a market leader despite lower visitation from international tourists [1] - The company is focused on sustainability and has transformed its operations over the past five years to enhance cash flow and shareholder value [2][3] - ESRT is actively pursuing growth opportunities in New York City, particularly in office, retail, and multifamily sectors, with a focus on risk-adjusted returns [5] Submarket Insights and Acquisitions - The acquisition of the Scholastic building in SoHo is seen as a unique opportunity due to its strong supply and demand fundamentals, with a projected stabilized yield of **8%** after lease-up [7][8] - The company is looking to create larger blocks of space to meet tenant demand, with a leasing pipeline of **170,000 sq ft** expected to close in the first half of 2025 [24][26] Market Trends and Economic Outlook - There is a noted increase in lender interest and transaction volumes in New York City, although prices remain **20%-30%** below their peak [14][46] - The residential sector is experiencing slower volume due to uncertainty regarding new regulations [15] - The demand for office space remains strong, with no cancellations of leases reported, despite concerns about AI's impact on future space needs [39][41] Visitor Trends and Observatory Performance - The Empire State Building Observatory is adapting to changes in visitor demographics, with a significant drop in budget international travelers but an increase in direct online sales [30][34] - Co-branding opportunities related to upcoming events, such as the World Cup, are being explored to enhance brand visibility and revenue [32][33] Capital Allocation and Future Guidance - ESRT has engaged in share buybacks totaling over **$300 million** and continues to evaluate capital allocation strategies that balance acquisitions and shareholder returns [12][54] - Guidance for 2026 reflects flat results compared to the previous year, with potential upside if international travel recovers [35] Conclusion - ESRT remains confident in its portfolio and market position, focusing on high-quality assets and strategic growth opportunities in New York City while navigating economic uncertainties and evolving market dynamics [3][43]

Core Viewpoint - Empire State Realty Trust, Inc. will participate in Citi's 31st Annual Global Property CEO Conference on March 2, 2026, at 8:10 AM Eastern time, highlighting its engagement with investors and the broader real estate market [1] Company Announcement - Anthony E. Malkin, Chairman and Chief Executive Officer, and Christina Chiu, President, will represent the company at the conference [1] - A live audio-webcast of the roundtable discussion will be available in the Investor Relations section of the company's website for interested investors [1]

分组1 - Longleaf Partners Small-Cap Fund reported a Q4 2025 return of 1.13%, underperforming the Russell 3000 Index at 2.40% and the Russell 2000 Index at 2.19% [1] - The Fund's annual return for 2025 was 7.56%, significantly lower than the Russell 3000 Index's 17.15% and the Russell 2000 Index's 12.81% [1] - Southeastern Asset Management emphasized the importance of investing in companies with strong free cash flow during market volatility, rather than speculative investments [1] 分组2 - Empire State Realty Trust, Inc. (NYSE:ESRT) is a New York City-focused REIT with a market capitalization of $1.764 billion [2] - ESRT's stock closed at $5.94 per share on February 24, 2026, with a one-month return of -8.90% and a 52-week loss of 33.85% [2] - Longleaf Partners noted that despite the negative stock performance, the underlying business fundamentals of ESRT and its peer Alexander's remain strong, with leasing trends outperforming stock price declines [3]

Core Viewpoint - Empire State Realty Trust, Inc. has declared dividends for the first quarter of 2026, reflecting its ongoing commitment to returning value to shareholders [1] Dividend Announcement - The Board of Directors declared a dividend of $0.035 per share for Class A and Class B common stock, and for certain operating partnership units [1] - A dividend of $0.15 per unit was declared for Series 2014 Private Perpetual Preferred Units, and $0.175 per unit for Series 2019 Private Perpetual Preferred Units [1] - Dividends will be payable in cash on March 31, 2026, to stockholders or unitholders of record as of March 13, 2026 [1] Company Overview - Empire State Realty Trust, Inc. is a New York City-focused REIT that owns and operates a portfolio of modernized office, retail, and multifamily assets [1] - The flagship property, the Empire State Building, is recognized as the 1 Top Attraction in New York City for the fourth consecutive year in Tripadvisor's 2025 Travelers' Choice Awards [1] - As of December 31, 2025, the operating portfolio includes approximately 7.6 million rentable square feet of office space, 0.8 million rentable square feet of retail space, and 743 residential units [1] - The company is also involved in the redevelopment of two properties, adding approximately 0.4 million rentable square feet of office space and 43 thousand rentable square feet of retail space [1]

Financial Data and Key Metrics Changes - For the full year 2025, core FFO was reported at $0.87 per diluted share, with Q4 core FFO at $0.23 per diluted share [24] - Same-store property cash NOI increased by 3.4% year-over-year for Q4 and 60 basis points for the full year [24] - Operating expenses increased by 1.7% for Q4 and 3.4% for the full year, primarily due to higher real estate taxes and cleaning-related labor costs [25] Business Line Data and Key Metrics Changes - The office portfolio is 93.5% leased, reflecting strong demand for top-quality, modernized buildings [8][19] - The observatory business generated approximately $24 million of NOI in Q4 and $90 million for the full year, with revenue per capita increasing by 6.9% year-over-year in Q4 [25][9] - The multifamily portfolio reported occupancy just under 98%, with revenue increasing by 9% year-over-year in Q4 [23] Market Data and Key Metrics Changes - The leasing team signed over 458,000 sq ft of new and renewal leases in Q4, achieving positive mark-to-market lease spreads of 6.4% in the Manhattan office portfolio [20] - The market for large block, institutional quality office space remains supply-constrained, with strong demand [15] - The company anticipates a year-end occupancy guidance of 90%-92% for 2026, despite expected temporary dips [22][27] Company Strategy and Development Direction - The company has transformed its portfolio to a 100% New York City focus, enhancing cash flow and portfolio quality [12][8] - Management emphasizes disciplined capital allocation and opportunistic share repurchases as part of their strategy [17][18] - The company aims to leverage its operating platform to drive occupancy, rents, and returns in a competitive market [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term cash growth potential of the portfolio, despite known tenant rollovers impacting FFO growth in 2026 [8] - The company remains focused on enhancing the guest experience and broadening marketing reach for the observatory, anticipating a recovery in international visitation [48][30] - Management acknowledged the impact of external factors, such as potential increases in property taxes, but remains optimistic about leasing demand [38][44] Other Important Information - The company completed $1 billion in acquisitions of high-quality real estate, improving cash flow and portfolio quality [8][11] - The company achieved the highest possible GRESB rating for the sixth consecutive year, reflecting its commitment to sustainability [10] - The company has a well-laddered maturity schedule with no unaddressed debt maturities until March 2027 [11] Q&A Session Summary Question: Outlook on leasing activity for Q1 2026 - Management indicated strong market tenor with over 170,000 sq ft of leases in the pipeline for Q1 and Q2 [33] Question: Details on the sale of the Stamford asset - The asset was sold for mid-$60 million, aligning with capital recycling objectives [34] Question: Impact of proposed property tax increases - Management stated that any increase would be passed through to tenants, and they remain focused on market conditions [38][39] Question: Effects of AI on leasing decisions - Management noted strong demand for high-quality office space, with AI contributing positively to leasing activity [40][41] Question: Impact of new mayor's policies on leasing discussions - Management confirmed that there has been no impact on leasing discussions due to the new mayor's rhetoric or policies [44] Question: Competition and economic outlook for the observatory - Management highlighted a shift in visitor demographics and competitive positioning, with a focus on direct marketing strategies [48][49]

Financial Data and Key Metrics Changes - For the full year 2025, core FFO was reported at $0.87 per diluted share, with Q4 core FFO at $0.23 per diluted share [24] - Same-store property cash NOI increased by 3.4% year-over-year for Q4 and 60 basis points for the full year [24] - Operating expenses increased by 1.7% for Q4 and 3.4% for the full year, primarily due to higher real estate taxes and cleaning-related labor costs [25] Business Line Data and Key Metrics Changes - The office portfolio is 93.5% leased, reflecting strong demand for top-tier, modernized properties [8][19] - The multifamily portfolio showed excellent performance with occupancy just under 98% and revenue increasing by 9% year-over-year in Q4 [23] - The Observatory business generated approximately $24 million of NOI in Q4 and $90 million for the full year, with revenue per capita increasing by 6.9% year-over-year in Q4 [25] Market Data and Key Metrics Changes - The leasing market in New York City is described as the strongest since 2019, with strong demand across various industries [19] - The company has a pipeline of over 170,000 sq ft of leases anticipated to close in the first and second quarters of 2026 [33] - The market for large block, institutional quality office space remains supply-constrained, with strong demand [15] Company Strategy and Development Direction - The company has transformed its portfolio to a 100% New York City focus, enhancing cash flow and portfolio quality [12] - A proactive balance sheet management strategy allows for strategic transactions and shareholder value creation [8] - The company aims to continue improving the quality of its portfolio and cash flows through prudent capital allocations [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term cash growth potential of the portfolio despite known tenant rollovers impacting FFO growth in 2026 [8] - The company anticipates a consistent performance in 2026, with core FFO guidance ranging from $0.85 to $0.89 per diluted share [27] - Management remains focused on enhancing the guest experience and driving efficiencies in the Observatory business [30] Other Important Information - The company completed $1 billion in acquisitions of high-quality real estate and disposed of suburban commercial assets without tax leakage [8] - The company achieved the highest possible GRESB rating for the sixth consecutive year, reflecting its sustainability leadership [10] - Opportunistic share repurchases remain a strategic part of the capital allocation framework, with $6 million repurchased in Q4 [17] Q&A Session Summary Question: Outlook on leasing activity for Q1 2026 - Management indicated strong market tenor and a pipeline of over 170,000 sq ft of leases anticipated to close in the first and second quarters [33] Question: Details on the sale price of the Stamford asset - The asset was sold for mid-$60 million, with a cap rate around 7% [34] Question: Impact of proposed property tax increases - Management stated that any increase would be passed through to tenants, and the market dynamics would dictate rent adjustments [38][39] Question: Impact of AI on leasing decisions - Management noted strong demand for high-quality office space, with AI being a positive factor for leasing demand [40] Question: Impact of new mayor's policies on leasing discussions - Management confirmed that the new mayor's rhetoric has not impacted leasing discussions, with high demand remaining [44] Question: Competition and economic outlook for the Observatory - Management highlighted a shift in visitor composition and strong direct marketing efforts, with competition from other attractions noted [48][49]

Financial Data and Key Metrics Changes - For the full year 2025, core FFO was reported at $0.87 per diluted share, reflecting continued performance across the platform [4] - Same-store property cash NOI increased by 3.4% year-over-year for Q4 and 60 basis points for the full year [22] - Operating expenses increased by 1.7% for Q4 and 3.4% for the full year, primarily driven by higher real estate taxes and cleaning-related labor costs [22] Business Line Data and Key Metrics Changes - The office portfolio is 93.5% leased, with a 170 basis point increase in occupancy year-over-year [18] - The multifamily portfolio reported occupancy just under 98%, with revenue increasing by 9% year-over-year in Q4 and 10% for the full year [21] - The observatory business generated approximately $24 million of NOI in Q4 and $90 million for the full year, with revenue per capita increasing by 6.9% year-over-year in Q4 [23] Market Data and Key Metrics Changes - The leasing market in New York City is described as the strongest since 2019, with strong demand concentrated among top-quality, modernized buildings [18] - The company has a pipeline of over 170,000 sq ft of leases anticipated to close in the first and second quarters of 2026 [31] - The market for large block, institutional quality office space is supply-constrained, with strong demand [12] Company Strategy and Development Direction - The company has transformed its portfolio to a 100% New York City focus, enhancing cash flow and portfolio quality [6] - A proactive balance sheet management strategy is in place to provide flexibility for strategic transactions and shareholder value creation [6] - The company aims to continue improving the quality of its portfolio and cash flows through prudent capital allocations [17] Management's Comments on Operating Environment and Future Outlook - Management expects 2026 FFO and same-store cash NOI to be consistent with 2025 results, with anticipated commercial occupancy of 90%-92% by year-end 2026 [25] - Known tenant rollover is expected to impact FFO growth in 2026, but the portfolio is well-positioned for long-term cash growth [6] - The company remains optimistic about the return of traditional international visitors and is focused on enhancing guest experiences [8] Other Important Information - The company achieved the highest possible GRESB rating for the sixth consecutive year, reflecting its sustainability leadership [9] - Opportunistic share repurchases remain a strategic part of the capital allocation framework, with $6 million of shares repurchased in Q4 [16] - The company has completed $1 billion of acquisitions of high-quality real estate, improving cash flow and portfolio quality [6] Q&A Session Summary Question: Outlook on leasing activity for Q1 2026 - Management indicated strong market tenor and a pipeline of over 170,000 sq ft of leases anticipated to close in the first and second quarters [31] Question: Details on the sale of the Stamford asset - The sale price was mid-$60 million, with adjustments bringing it close to the debt balance [32] Question: Impact of proposed property tax increases - Management stated that any increase would be passed through to tenants, and the market dynamics would dictate rent adjustments [36][37] Question: Impact of AI on leasing decisions - Management noted strong demand for high-quality office space, with AI being a positive factor for leasing activity [38] Question: Impact of the new mayor's policies on leasing discussions - Management confirmed that there has been no impact on leasing discussions from the new mayor's rhetoric or policies [42] Question: Economic outlook for the observatory and competition - Management highlighted a shift in visitor composition towards more domestic visitors and noted competition from other attractions [46]

EMPIRE STATE REALTY TRUST Investor Presentation February 2026 North Sixth Street Collect Multi-Purpose Space at ESB Williamsburg, Brooklyn Rooftop and Penthouse Lounge at 501 Seventh Ave Sol de Janeiro at One Grand Central Place 34th Street Empire Lounge at ESB CLA at One Grand Central Place Empire State Empire State Building REALTY TRU Contents ESRT's Transformation Quarterly Highlights ESRT Overview ESRT Property Sector Highlights Key Takeaways Appendix 2 | 38 RE STATE REALTY TRUST ESRT's Transformation 3 ...