NEW YORK--(BUSINESS WIRE)--Empire State Realty Trust, Inc. (NYSE: ESRT) announced today that it achieved the highest possible Global Real Estate Sustainability Benchmark (GRESB) 5 Star Rating for the sixth consecutive year with a score of 93 and an A in public disclosure. ESRT achieved the highest management score for all 575 ranked companies in the Americas, and the second highest overall score for all listed companies in the Americas. GRESB is a rigorous standard that assesses and benchmarks. ...

Core Viewpoint - Empire State Realty Trust, Inc. will release its third quarter 2025 financial results on October 29, 2025, after market close [1] - A conference call is scheduled for October 30, 2025, at 12:00 p.m. Eastern Time to discuss performance and recent events [1] Financial Results Announcement - The financial results for the third quarter of 2025 will be disclosed after the close of markets on the New York Stock Exchange [1] - The conference call will include a review of the third quarter performance and a question-and-answer session [1]

Group 1 - Paramount Group's stock price rose by 3.7% after reports of multiple bidders in the second round of sales [1] - Bidders include Vornado Realty (VNO.US), SL Green Realty (SLG.US), Empire State Realty Trust (ESRT.US), Blackstone (BX.US), DivcoWest, and Rithm Capital (RITM.US) [1] - Paramount Group initiated a strategic review in May to maximize shareholder value [1] Group 2 - Paramount Group is a real estate investment trust focused on owning, operating, managing, acquiring, and redeveloping high-quality Class A office properties in central business districts of New York City and San Francisco [1] - The company's stock has increased by 40% year-to-date [1]

[FORM 10-Q Filing Information](index=1&type=section&id=FORM%2010-Q) [Registrant Information](index=1&type=section&id=Registrant%20Information) Details the registrant, filing type, period, and commission file number for Empire State Realty Trust, Inc - Registrant: **EMPIRE STATE REALTY TRUST, INC.**[2](index=2&type=chunk) - Filing Type: **Quarterly Report (Form 10-Q)**[2](index=2&type=chunk) - Period Ended: **June 30, 2025**[2](index=2&type=chunk) - Commission File Number: **001-36105**[2](index=2&type=chunk) [Securities Registered](index=1&type=section&id=Securities%20Information) The company's Class A Common Stock is registered on the New York Stock Exchange, while Class B Common Stock is not publicly traded Table: Registered Securities | Title of each class | Trading Symbol | Name of each exchange on which registered | | :------------------ | :------------- | :---------------------------------------- | | Class A Common Stock, par value $0.01 per share | ESRT | The New York Stock Exchange | | Class B Common Stock, par value $0.01 per share | N/A | N/A | [Filer Status and Outstanding Shares](index=1&type=section&id=Filer%20Status%20and%20Outstanding%20Shares) ESRT is classified as a large accelerated filer and is not a shell company. As of August 4, 2025, the company had 168.6 million Class A Common Stock shares and 0.97 million Class B Common Stock shares outstanding - Filer Status: **Large accelerated filer**[4](index=4&type=chunk) - Shell Company: **No**[4](index=4&type=chunk) - Outstanding Class A Common Stock (as of August 4, 2025): **168.6 million shares**[4](index=4&type=chunk) - Outstanding Class B Common Stock (as of August 4, 2025): **0.97 million shares**[4](index=4&type=chunk) [PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%201.%20FINANCIAL%20INFORMATION) [ITEM 1. FINANCIAL STATEMENTS](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) Presents unaudited condensed consolidated financial statements, including balance sheets, income statements, cash flows, and detailed notes for the period ended June 30, 2025 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows a decrease in total assets primarily driven by a significant reduction in cash and cash equivalents and the derecognition of a contract asset, while total liabilities also decreased, leading to a slight increase in total equity Table: Condensed Consolidated Balance Sheet Highlights (amounts in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :---------------------------- | :------------ | :---------------- | | Total assets | $4,078,750 | $4,510,287 | | Cash and cash equivalents | $94,643 | $385,465 | | Contract asset | — | $170,419 | | Total liabilities | $2,289,502 | $2,728,325 | | Total equity | $1,789,248 | $1,781,962 | - Total assets decreased by **$431.5 million** from December 31, 2024, to June 30, 2025[10](index=10&type=chunk) - Cash and cash equivalents decreased by **$290.8 million**[10](index=10&type=chunk) - Total liabilities decreased by **$438.8 million**[10](index=10&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For both the three and six months ended June 30, 2025, total revenues remained relatively stable year-over-year, but operating income and net income decreased, leading to a lower basic and diluted earnings per share Table: Condensed Consolidated Statements of Operations (amounts in thousands, except per share) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenues | $191,250 | $189,543 | $371,316 | $370,722 | | Total operating income | $35,122 | $39,361 | $60,910 | $70,424 | | Net income | $11,385 | $28,555 | $27,163 | $38,770 | | Net income attributable to common stockholders | $6,519 | $17,071 | $15,739 | $22,732 | | Basic EPS | $0.04 | $0.10 | $0.09 | $0.14 | | Diluted EPS | $0.04 | $0.10 | $0.09 | $0.14 | | Dividends per share | $0.035 | $0.035 | $0.070 | $0.070 | - Net income attributable to common stockholders decreased by **61.8%** for the three months ended June 30, 2025, and by **30.8%** for the six months ended June 30, 2025, compared to the prior year periods[12](index=12&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) The company reported a shift from an unrealized gain to an unrealized loss on interest rate swap agreements, contributing to a decrease in comprehensive income for both the three and six months ended June 30, 2025, compared to the prior year Table: Condensed Consolidated Statements of Comprehensive Income (amounts in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $11,385 | $28,555 | $27,163 | $38,770 | | Unrealized gain (loss) on valuation of interest rate swap agreements | $(1,472) | $2,853 | $(5,588) | $11,051 | | Other comprehensive income (loss) | $(1,956) | $2,186 | $(7,121) | $8,060 | | Comprehensive income | $9,429 | $30,741 | $20,042 | $46,830 | | Comprehensive income attributable to common stockholders | $5,281 | $18,437 | $11,267 | $27,820 | [Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Total equity increased slightly from December 31, 2024, to June 30, 2025, primarily due to net income and equity compensation, partially offset by dividends and share repurchases Table: Condensed Consolidated Statements of Stockholders' Equity (amounts in thousands) | Metric | Balance at December 31, 2024 | Balance at June 30, 2025 | | :---------------------------- | :--------------------------- | :----------------------- | | Total Empire State Realty Trust, Inc. stockholders' equity | $1,030,696 | $1,038,209 | | Non-controlling interests in the Operating Partnership | $721,326 | $721,099 | | Total equity | $1,781,962 | $1,789,248 | - Net income attributable to common stockholders for the six months ended June 30, 2025, was **$15.7 million**[18](index=18&type=chunk) - Dividends and distributions totaled **$21.6 million** for the six months ended June 30, 2025[18](index=18&type=chunk) - Repurchases of common shares amounted to **$2.1 million** for the six months ended June 30, 2025[18](index=18&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating activities provided slightly more cash, while investing activities used significantly more cash due to property acquisitions. Financing activities shifted from providing cash to using a substantial amount, primarily due to debt repayments, resulting in a net decrease in cash and restricted cash Table: Condensed Consolidated Statements of Cash Flows (amounts in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $109,861 | $108,050 | | Net cash used in investing activities | $(155,570) | $(127,662) | | Net cash (used in) provided by financing activities | $(246,866) | $189,204 | | Net (decrease) increase in cash and cash equivalents and restricted cash | $(292,575) | $169,592 | | Cash and cash equivalents and restricted cash—end of period | $136,727 | $576,548 | - Investing activities included **$31.7 million** for the acquisition of real estate property in 2025[20](index=20&type=chunk) - Financing activities included repayment of **$100.0 million** in unsecured senior notes and **$120.0 million** in unsecured revolving credit facility in 2025[22](index=22&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanations and disclosures for the financial statements, covering business, accounting policies, acquisitions, debt, equity, and segment performance [1. Description of Business and Organization](index=12&type=section&id=1.%20Description%20of%20Business%20and%20Organization) Empire State Realty Trust, Inc. (ESRT) is a NYC-focused REIT owning and operating a portfolio of office, retail, and multifamily assets, including the iconic Empire State Building. The company holds a controlling interest in its Operating Partnership, which conducts substantially all business - ESRT is a **NYC-focused REIT** with a portfolio of office, retail, and multifamily assets[25](index=25&type=chunk) - Portfolio as of June 30, 2025: approximately **7.8 million rentable square feet of office space**, **0.8 million rentable square feet of retail space**, and **743 residential units**[26](index=26&type=chunk) - ESRT owns approximately **60.8%** of the aggregate operating partnership units in its Operating Partnership[27](index=27&type=chunk) [2. Summary of Significant Accounting Policies](index=12&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) The company's unaudited condensed consolidated financial statements are prepared in conformity with GAAP and SEC rules, with no material changes to significant accounting policies from the prior Annual Report. The Observatory and multifamily businesses experience some seasonality - No material changes to significant accounting policies from the Annual Report on Form 10-K for the year ended December 31, 2024[28](index=28&type=chunk) - Observatory business experiences seasonality, with **25% of annual revenue** realized in the second quarter of 2024[30](index=30&type=chunk) - Multifamily business experiences seasonality in winter months (November-January) due to slower lease activity[30](index=30&type=chunk) - The Operating Partnership is consolidated as a **Variable Interest Entity (VIE)** of ESRT[32](index=32&type=chunk) [3. Acquisitions and Dispositions](index=14&type=section&id=3.%20Acquisitions%20and%20Dispositions) In June 2025, ESRT acquired two retail properties for $31.0 million. The consensual foreclosure of First Stamford Place was completed in February 2025, leading to the derecognition of related debt and a $13.2 million gain - Acquired two retail properties on North 6th Street in Williamsburg, Brooklyn, for **$31.0 million** in June 2025[35](index=35&type=chunk) - Completed consensual foreclosure of First Stamford Place in February 2025, resulting in the derecognition of the senior mortgage obligation and a **$13.2 million gain** from the mezzanine debt obligation[38](index=38&type=chunk)[39](index=39&type=chunk) - In March 2024, ESRT bought out a **10% non-controlling interest** in two multifamily properties for **$14.2 million cash** and **$18.0 million debt assumption**[36](index=36&type=chunk) [4. Deferred Costs, Acquired Lease Intangibles and Goodwill](index=16&type=section&id=4.%20Deferred%20Costs,%20Acquired%20Lease%20Intangibles%20and%20Goodwill) Deferred costs, net, decreased slightly to $181.7 million as of June 30, 2025. Goodwill remained at $491.5 million, allocated between the Observatory and real estate segments, with no impairment identified in the latest annual testing Table: Deferred Costs, Lease Intangibles, and Goodwill (amounts in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :---------------------------- | :------------ | :---------------- | | Total deferred costs, net | $181,694 | $183,987 | | Acquired below-market ground leases, net | $309,495 | $313,410 | | Goodwill | $491,479 | $491,479 | - Goodwill is allocated **$227.5 million** to the Observatory segment and **$264.0 million** to the real estate segment[40](index=40&type=chunk) - Annual goodwill testing in October 2024 concluded that the fair value of the reporting unit exceeded its carrying value, indicating **no impairment**[41](index=41&type=chunk)[43](index=43&type=chunk) [5. Debt](index=18&type=section&id=5.%20Debt) Total principal debt decreased to $2.07 billion as of June 30, 2025, primarily due to the repayment of $100 million in Series A senior unsecured notes and $120 million from the unsecured revolving credit facility. The company remains in compliance with all debt covenants Table: Debt Summary (amounts in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :---------------------------- | :------------ | :---------------- | | Total principal | $2,072,478 | $2,294,274 | | Total debt (net of deferred financing costs and unamortized discount) | $2,057,678 | $2,277,968 | | Mortgage notes payable, net | $691,440 | $692,176 | | Senior unsecured notes, net | $1,097,355 | $1,197,061 | | Unsecured term loan facilities, net | $268,883 | $268,731 | | Unsecured revolving credit facility | — | $120,000 | - Repaid **$100.0 million Series A senior unsecured notes** on March 27, 2025[55](index=55&type=chunk) - Repaid **$120.0 million borrowings** on the Revolving Credit Facility on March 18, 2025, with **no outstanding balance** as of June 30, 2025[50](index=50&type=chunk) - The company was in **compliance with all debt covenants** as of June 30, 2025[45](index=45&type=chunk)[54](index=54&type=chunk)[56](index=56&type=chunk) [6. Accounts Payable and Accrued Expenses](index=21&type=section&id=6.%20Accounts%20Payable%20and%20Accrued%20Expenses) Total accounts payable and accrued expenses decreased to $104.3 million as of June 30, 2025, primarily due to a reduction in capital expenditures included in accounts payable Table: Accounts Payable and Accrued Expenses (amounts in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :---------------------------- | :------------ | :---------------- | | Total accounts payable and accrued expenses | $104,315 | $132,016 | | Capital expenditures included in accounts payable and accrued expenses | $51,560 | $73,535 | [7. Financial Instruments and Fair Values](index=21&type=section&id=7.%20Financial%20Instruments%20and%20Fair%20Values) ESRT uses derivatives to manage interest rate risk, with $448.0 million notional value, resulting in a net asset position and debt fair value below book value - Aggregate notional value of interest rate swaps and caps was **$448.0 million** as of June 30, 2025, down from **$664.0 million** as of December 31, 2024[61](index=61&type=chunk)[63](index=63&type=chunk) - Derivative instruments designated as cash flow hedges resulted in a **net unrealized loss of $2.0 million** for the three months and **$7.1 million** for the six months ended June 30, 2025, recognized in comprehensive income[62](index=62&type=chunk) - The fair value of outstanding debt was approximately **$2.0 billion**, which was **$98.3 million less than the book value** as of June 30, 2025[64](index=64&type=chunk)[214](index=214&type=chunk) [8. Leases](index=26&type=section&id=8.%20Leases) As a lessor, ESRT's rental revenue includes fixed and variable payments, with future contractual minimum lease payments totaling $3.75 billion. As a lessee, the company has operating lease agreements for three ground lease assets, with right-of-use assets and lease liabilities of $28.1 million Table: Rental Revenue from Leases (amounts in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Fixed payments (rental revenue) | $133,873 | $136,235 | $269,829 | $272,588 | | Variable payments (rental revenue) | $19,667 | $16,235 | $38,253 | $33,764 | | Total rental revenue | $153,540 | $152,470 | $308,082 | $306,352 | - Future contractual minimum lease payments on non-cancellable operating leases to be received total **$3.75 billion** as of June 30, 2025[73](index=73&type=chunk) - Future lease payments to be received for signed leases not yet commenced amount to approximately **$570.1 million**[74](index=74&type=chunk) - Right-of-use assets and ground lease liabilities were **$28.1 million** as of June 30, 2025, with a weighted average remaining lease term of **45.0 years**[75](index=75&type=chunk)[78](index=78&type=chunk) [9. Commitments and Contingencies](index=28&type=section&id=9.%20Commitments%20and%20Contingencies) ESRT is involved in ongoing legal proceedings, including an arbitration appeal related to the Empire State Building, and estimates $103.9 million in unfunded capital expenditures. The company also addresses environmental matters, including asbestos and Local Law 97 compliance, and maintains customary insurance coverage - An arbitration award of approximately **$1.3 million** (inclusive of interest) against the Respondents (including ESRT subsidiary) was affirmed by the appeals court on March 13, 2025, with a motion for leave to appeal to the New York Court of Appeals filed[82](index=82&type=chunk) - Estimated unfunded capital expenditures (tenant improvements and leasing commissions) are approximately **$103.9 million** as of June 30, 2025[85](index=85&type=chunk) - ESRT expects to pay **no Local Law 97 fine** on any covered building in its portfolio for the 2024-2029 enforcement period[93](index=93&type=chunk) [10. Equity](index=32&type=section&id=10.%20Equity) As of June 30, 2025, ESRT had 168.3 million Class A common shares and 109.3 million OP Units outstanding. The company repurchased 310,415 shares in April 2025 under its $500 million repurchase program. Total dividends and distributions to equity holders for the six months ended June 30, 2025, were $21.6 million - As of June 30, 2025, there were **168.3 million shares of Class A common stock** and **109.3 million OP Units** outstanding[99](index=99&type=chunk) - Repurchased **310,415 shares of Class A common stock** in April 2025 at an average price of **$6.92 per share**, under a **$500.0 million repurchase program** authorized through December 31, 2025[102](index=102&type=chunk) Table: Dividends and Distributions (amounts in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------- | :----------------------------- | :----------------------------- | | Dividends paid to common stockholders | $(11,799) | $(11,552) | | Distributions paid to Operating Partnership unitholders | $(7,689) | $(7,546) | | Distributions paid to preferred unitholders | $(2,101) | $(2,101) | | Total Dividends and Distributions | $(21,589) | $(21,199) | - Unrecognized compensation expense for LTIP unit awards was **$42.1 million** at June 30, 2025, to be recognized over a weighted average period of **2.8 years**[118](index=118&type=chunk) [11. Related Party Transactions](index=39&type=section&id=11.%20Related%20Party%20Transactions) ESRT engages in various related party transactions, including supervisory fees, property management fees, and rent from entities affiliated with its Chairman and CEO, Anthony E. Malkin. Additionally, a director's sister is the CEO of a tenant at one of ESRT's properties Table: Related Party Revenue (amounts in thousands) | Revenue Type | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Supervisory Fee Revenue | $0.3 | $0.2 | $0.7 | $0.4 | | Property Management Fee Revenue | $0.1 | $0.1 | $0.1 | $0.2 | | Other Revenue (rent, computer support) | $0.1 | $0.1 | $0.2 | $0.2 | - A director's sister is the Founder and CEO of Sol de Janeiro USA, a tenant at One Grand Central Place, with a lease commencing April 2025 at an annualized rent of **$3.5 million**[125](index=125&type=chunk) [12. Segment Reporting](index=41&type=section&id=12.%20Segment%20Reporting) ESRT operates through two reportable segments: Real Estate and Observatory. Net Operating Income (NOI) for both segments decreased for the three and six months ended June 30, 2025, compared to the prior year, with the Real Estate segment contributing the majority of NOI - ESRT has two reportable segments: **Real Estate** (office, retail, multifamily) and **Observatory** (Empire State Building observatories)[125](index=125&type=chunk) - Net Operating Income (NOI) is the primary measure used by the Chief Executive Officer to evaluate segment performance[126](index=126&type=chunk) Table: Segment Net Operating Income (amounts in thousands) | Segment Net Operating Income | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Real Estate NOI | $97,790 | $100,292 | $188,983 | $193,045 | | Observatory NOI | $3,411 | $4,186 | $3,294 | $4,284 | | Total Net Operating Income | $101,201 | $104,478 | $192,277 | $197,329 | [13. Subsequent Events](index=44&type=section&id=13.%20Subsequent%20Events) There were no material subsequent events reported after June 30, 2025 - No subsequent events were reported[133](index=133&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=45&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses ESRT's financial condition and results for the three and six months ended June 30, 2025, covering performance, liquidity, and capital resources [Forward-Looking Statements](index=45&type=section&id=Forward-Looking%20Statements) This section includes a standard disclaimer regarding forward-looking statements, emphasizing that they are subject to substantial risks and uncertainties and do not guarantee future performance - Forward-looking statements are subject to **substantial risks and uncertainties**, many of which are difficult to predict and generally beyond the company's control[137](index=137&type=chunk) - The company does not guarantee that described transactions and events will happen as described and assumes **no obligation to update or revise publicly** any forward-looking statement[137](index=137&type=chunk)[139](index=139&type=chunk) [Highlights for the three months ended June 30, 2025](index=46&type=section&id=Highlights%20for%20the%20three%20months%20ended%20June%2030,%202025) Key highlights for the quarter include net income attributable to common stockholders of $6.5 million, Core FFO of $59.2 million, significant leasing activity, and the acquisition of two retail properties - Net income attributable to common stockholders: **$6.5 million**[140](index=140&type=chunk) - Core Funds From Operations (Core FFO) attributable to common stockholders and the operating partnership: **$59.2 million**[140](index=140&type=chunk) - Signed a total of **232,108 rentable square feet** of new, renewal, and expansion leases[142](index=142&type=chunk) - Closed on the acquisition of two retail properties in Williamsburg, Brooklyn, for an aggregate purchase price of **$31.0 million**[142](index=142&type=chunk) [Results of Operations](index=47&type=section&id=Results%20of%20Operations) This section details the financial performance for the three and six months ended June 30, 2025, compared to 2024, analyzing revenues and expenses across the Real Estate and Observatory segments [Three Months Ended June 30, 2025 Compared to the Three Months Ended June 30, 2024](index=47&type=section&id=Three%20Months%20Ended%20June%2030,%202025%20Compared%20to%20the%20Three%20Months%20Ended%20June%2030,%202024) Total revenues saw a slight increase, but operating income and net income decreased due to higher property operating and Observatory expenses, lower interest income, and the absence of a gain on disposition compared to the prior year Table: Financial Performance (amounts in thousands) | Metric | 2025 | 2024 | Change | % Change | | :---------------------------- | :--- | :--- | :----- | :------- | | Total revenues | $191,250 | $189,543 | $1,707 | 0.9 % | | Total operating expenses | $156,128 | $150,182 | $(5,946) | (4.0)% | | Operating income | $35,122 | $39,361 | $(4,239) | (10.8)% | | Net income | $11,385 | $28,555 | $(17,170) | (60.1)% | | Net income attributable to common stockholders | $6,519 | $17,071 | $(10,552) | (61.8)% | - Rental revenue increased by **$1.1 million (0.7%)** primarily due to higher operating and real estate tax expense escalations[48](index=48&type=chunk)[144](index=144&type=chunk) - Observatory revenue decreased by **$0.2 million (0.7%)** due to lower visitation, attributed to bad weather and reduced international tourism[48](index=48&type=chunk)[148](index=148&type=chunk) - Property operating expenses increased by **$3.4 million (8.1%)** due to higher repair and maintenance costs and cleaning-related payroll[48](index=48&type=chunk)[145](index=145&type=chunk) - Interest income decreased by **$3.2 million (63.3%)** due to lower cash and cash equivalents from debt paydowns and acquisitions[48](index=48&type=chunk)[146](index=146&type=chunk) [Six Months Ended June 30, 2025 Compared to the Six Months Ended June 30, 2024](index=49&type=section&id=Six%20Months%20Ended%20June%2030,%202025%20Compared%20to%20the%20Six%20Months%20Ended%20June%2030,%202024) For the six-month period, total revenues showed a marginal increase, but operating income and net income declined significantly. This was driven by increased operating expenses, general and administrative costs, and interest expense, despite a gain on property disposition Table: Financial Performance (amounts in thousands) | Metric | 2025 | 2024 | Change | % Change | | :---------------------------- | :--- | :--- | :----- | :------- | | Total revenues | $371,316 | $370,722 | $594 | 0.2 % | | Total operating expenses | $310,406 | $300,298 | $(10,108) | (3.4)% | | Operating income | $60,910 | $70,424 | $(9,514) | (13.5)% | | Net income | $27,163 | $38,770 | $(11,607) | (29.9)% | | Net income attributable to common stockholders | $15,739 | $22,732 | $(6,993) | (30.8)% | - Rental revenue increased by **$1.7 million (0.6%)** due to higher operating and real estate tax expense escalations, partially offset by acquisitions and dispositions[151](index=151&type=chunk)[153](index=153&type=chunk) - Observatory revenue decreased by **$1.7 million (2.8%)** due to lower visitation, attributed to bad weather and reduced international tourism[151](index=151&type=chunk)[160](index=160&type=chunk) - Property operating expenses increased by **$3.4 million (3.9%)** due to higher repair and maintenance, cleaning payroll, and utilities[151](index=151&type=chunk)[154](index=154&type=chunk) - General and administrative expenses increased by **$1.6 million (4.8%)** due to higher payroll costs, including accelerated share-based compensation[151](index=151&type=chunk)[155](index=155&type=chunk) - Interest expense increased by **$1.6 million (3.2%)** due to new senior unsecured notes, partially offset by debt repayments[151](index=151&type=chunk)[157](index=157&type=chunk) - Gain on disposition of property increased by **$2.4 million (21.9%)** due to the deconsolidation of the First Stamford Place mezzanine debt obligation in February 2025[152](index=152&type=chunk)[158](index=158&type=chunk) [Liquidity and Capital Resources](index=53&type=section&id=Liquidity%20and%20Capital%20Resources) ESRT maintains strong liquidity with $94.6 million cash and $620.0 million credit facility, supported by $2.1 billion debt with a 5.0-year weighted average maturity - As of June 30, 2025, ESRT had **$94.6 million in cash and cash equivalents** and **$620.0 million available** under its unsecured revolving credit facility[163](index=163&type=chunk) - Total consolidated indebtedness outstanding was approximately **$2.1 billion**, with a weighted average interest rate of **4.34%** and a weighted average maturity of **5.0 years**[163](index=163&type=chunk)[213](index=213&type=chunk) - The company was in **compliance with all financial covenants** related to its unsecured facilities as of June 30, 2025[167](index=167&type=chunk) - **No mortgage debt maturity until April 2026**[168](index=168&type=chunk) - Repaid **$120.0 million borrowings** on the Revolving Credit Facility and **$100.0 million Series A senior unsecured notes** in March 2025[166](index=166&type=chunk)[171](index=171&type=chunk) - Capital expenditures (excluding tenant improvements and leasing commissions) for the six months ended June 30, 2025, were **$26.0 million**[179](index=179&type=chunk) - Estimated additional costs for tenant improvements and leasing commissions under existing lease agreements are approximately **$103.9 million**[180](index=180&type=chunk) - Net cash provided by operating activities increased by **$1.8 million** to **$109.9 million** for the six months ended June 30, 2025[187](index=187&type=chunk) - Net cash used in investing activities increased by **$27.9 million** to **$155.6 million**, primarily due to the acquisition of two retail properties for **$31.7 million**[188](index=188&type=chunk) - Net cash used in financing activities increased by **$436.1 million** to **$246.9 million**, primarily due to debt repayments[188](index=188&type=chunk) [Non-GAAP Financial Measures](index=57&type=section&id=Non-GAAP%20Financial%20Measures) This section reconciles GAAP net income to non-GAAP measures such as Net Operating Income (NOI), Funds from Operations (FFO), Modified FFO, and Core FFO, which management uses to evaluate property performance and provide a comparable basis for investors - NOI, FFO, Modified FFO, and Core FFO are **non-GAAP financial measures** used to evaluate operating performance and are not substitutes for GAAP net income[189](index=189&type=chunk)[195](index=195&type=chunk)[197](index=197&type=chunk)[198](index=198&type=chunk) Table: Non-GAAP Financial Measures (amounts in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Operating Income (NOI) | $101,201 | $104,478 | $192,277 | $197,329 | | Funds from Operations (FFO) attributable to common stockholders and the Operating Partnership | $57,255 | $63,099 | $106,684 | $117,117 | | Modified Funds from Operations (Modified FFO) attributable to common stockholders and the Operating Partnership | $59,213 | $65,057 | $110,600 | $121,033 | | Core Funds from Operations (Core FFO) attributable to common stockholders and the Operating Partnership | $59,213 | $65,685 | $111,247 | $122,214 | [Factors That May Influence Future Results of Operations](index=61&type=section&id=Factors%20That%20May%20Influence%20Future%20Results%20of%20Operations) Future results are influenced by leasing activity, Observatory operations, and the broader economic outlook. While global economic uncertainty persists, ESRT believes its diversified, modernized portfolio and strong balance sheet position it well to navigate challenges - As of June 30, 2025, approximately **0.6 million rentable square feet** (7.4% of the commercial portfolio) was available to lease[202](index=202&type=chunk) - Leases representing **3.5% and 5.8% of net rentable square footage** will expire in 2025 and 2026, respectively[203](index=203&type=chunk) - Observatory visitors decreased by **6.7%** to **1,057,000** for the six months ended June 30, 2025, compared to **1,133,000 visitors** in the prior year[204](index=204&type=chunk) - Observatory revenue decreased by **2.8%** to **$57.1 million** for the six months ended June 30, 2025, primarily due to lower visitation[204](index=204&type=chunk) - ESRT acknowledges global economic uncertainty but believes its **diversified, modernized, and energy-efficient NYC-focused portfolio**, coupled with a **strong balance sheet** and **no near-term debt maturities**, provides a good competitive position[206](index=206&type=chunk)[207](index=207&type=chunk)[208](index=208&type=chunk) [Critical Accounting Estimates](index=63&type=section&id=Critical%20Accounting%20Estimates) There were no material changes to the critical accounting estimates disclosed in the company's Annual Report on Form 10-K - No material changes to critical accounting estimates disclosed in the Annual Report[209](index=209&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=64&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) ESRT manages interest rate risk using fixed-rate debt and derivatives, with $448.0 million notional value and $2.1 billion fixed-rate indebtedness at 4.34% - ESRT uses interest rate swaps and caps to mitigate interest rate risk, with an aggregate notional value of **$448.0 million** as of June 30, 2025[211](index=211&type=chunk)[212](index=212&type=chunk) - The weighted average interest rate on **$2.1 billion of fixed-rate indebtedness** outstanding was **4.34% per annum** as of June 30, 2025[213](index=213&type=chunk) - The fair value of outstanding debt was approximately **$2.0 billion**, which was **$98.3 million less than the book value** as of June 30, 2025[214](index=214&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=64&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management, including the CEO and CFO, concluded that ESRT's disclosure controls and procedures were effective as of June 30, 2025, and reported no material changes to internal control over financial reporting during the period - Disclosure controls and procedures were evaluated and deemed **effective** as of June 30, 2025[216](index=216&type=chunk) - No material changes to internal control over financial reporting occurred during the period covered by the report[217](index=217&type=chunk) [PART II. OTHER INFORMATION](index=64&type=section&id=PART%20II.%20OTHER%20INFORMATION) This part covers legal proceedings, risk factors, equity sales, defaults, mine safety, other information, and exhibits for the reporting period [ITEM 1. LEGAL PROCEEDINGS](index=64&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) This section refers to Note 9 of the financial statements for a description of legal proceedings, indicating no new material information beyond what is already disclosed - Legal proceedings are described in **Note 9 Commitments and Contingencies** of the Financial Statements[218](index=218&type=chunk) [ITEM 1A. RISK FACTORS](index=66&type=section&id=ITEM%201A.%20RISK%20FACTORS) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K as of June 30, 2025 - No material changes to risk factors as of June 30, 2025, referring to the Annual Report on Form 10-K for the year ended December 31, 2024[219](index=219&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=66&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) ESRT reported no unregistered sales of equity securities during the period. The company continued its repurchase program, buying back 310,415 shares of Class A common stock in April 2025 - No unregistered sales of equity securities occurred[220](index=220&type=chunk) - Under the repurchase program, **310,415 shares of Class A common stock** were purchased in April 2025 at an average price of **$6.92 per share**[222](index=222&type=chunk) - The maximum approximate dollar value available for future purchases under the **$500 million program** remained at **$497.9 million** as of June 30, 2025[222](index=222&type=chunk) [ITEM 3. DEFAULTS UPON SENIOR SECURITIES](index=66&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) The company reported no defaults upon senior securities during the period - No defaults upon senior securities were reported[223](index=223&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES](index=66&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) This item is not applicable to Empire State Realty Trust, Inc - Mine safety disclosures are not applicable to the registrant[224](index=224&type=chunk) [ITEM 5. OTHER INFORMATION](index=66&type=section&id=ITEM%205.%20OTHER%20INFORMATION) No other material information was reported under this item, and no directors or officers adopted, terminated, or modified Rule 10b5-1 trading arrangements during the quarter - No directors or officers adopted, terminated, or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[226](index=226&type=chunk) [ITEM 6. EXHIBITS](index=67&type=section&id=ITEM%206.%20EXHIBITS) This section lists all exhibits filed with the Form 10-Q, including credit agreement amendments, certifications, and XBRL interactive data files - Includes the **First Amendment to Credit Agreement** dated May 28, 2025[227](index=227&type=chunk) - Certifications of Chief Executive Officer and Principal Financial Officer (Sections 302 and 906 of Sarbanes-Oxley Act of 2002) are filed herewith[227](index=227&type=chunk) - XBRL Instance Document and Taxonomy Extension Documents are included[227](index=227&type=chunk) [SIGNATURES](index=68&type=section&id=SIGNATURES) The report is duly signed on behalf of Empire State Realty Trust, Inc. by Stephen V. Horn, Executive Vice President, Chief Financial Officer & Chief Accounting Officer, on August 6, 2025 [Signature Block](index=68&type=section&id=Signature%20Block) The report is signed by Stephen V. Horn, Executive Vice President, Chief Financial Officer & Chief Accounting Officer, on August 6, 2025 - Signed by **Stephen V. Horn, Executive Vice President, Chief Financial Officer & Chief Accounting Officer**[232](index=232&type=chunk) - Date of signature: **August 6, 2025**[232](index=232&type=chunk)

Financial Performance - Empire State Realty Trust's second quarter results were in line, but full year guidance was lowered [1] - The company delivered $24 million of NOI to the bottom line [4] - Leasing spreads mark to market were at 12.1%, marking the 16th consecutive quarter of positive leasing spreads [7] Observatory Business - The observatory experienced an unusual number of bad weather days on weekends, impacting performance [2] - Demand has been lower from past program business, predominantly international [2] - Revenue per person is up more than 2.3% [5] - Domestic visitors now account for a little more than 50% of visitors, a shift from pre-COVID levels where international visitors were approximately two thirds [5] Leasing Activity - 222,000 square feet of leases were signed in the Manhattan portfolio in the last quarter [7] External Factors - Concerns exist regarding the impact of potential policy changes and political climate on New York City's attractiveness to businesses and residents [9][10]

Financial Data and Key Metrics Changes - For Q2 2025, the company reported core FFO of $0.22 per diluted share, with same store property cash NOI down 3% year over year [12][14] - Operating expenses increased by 8.8%, primarily due to higher real estate taxes and maintenance costs, but were partially offset by higher tenant reimbursement income [13] - The company revised its 2025 core FFO guidance to a range of $0.83 to $0.86 per share due to challenges faced by the Observatory [15] Business Line Data and Key Metrics Changes - The office leasing team leased approximately 232,000 square feet, including 202,000 square feet of new Manhattan office leasing at double-digit positive mark to market leasing spreads [8][17] - The Manhattan office portfolio is now 93.8% leased, an increase of 80 basis points from the previous quarter [18] - The Observatory generated $24 million in NOI in Q2, reflecting a 4.3% decline year over year, with visitation down 2.9% [8][13] Market Data and Key Metrics Changes - The multifamily portfolio achieved 99% occupancy and 8% year-over-year rent growth in Q2 [21] - The company noted a tightening supply of top-tier office space in Manhattan, creating a favorable supply-demand dynamic [19] - The net effect of rent increased by 2% over the last quarter due to longer average lease terms and higher starting rents [20] Company Strategy and Development Direction - The company emphasizes sustainability as a cornerstone of its business philosophy, aiming to lead in environmental stewardship [10] - The strategic focus includes leasing space, driving Observatory ticket sales, maintaining a strong balance sheet, and pursuing growth opportunities [90] - The company is actively pursuing acquisitions in prime retail locations, such as Williamsburg, to capitalize on long-term growth prospects [24][26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the Observatory business due to bad weather and lower international demand but remains optimistic about the long-term fundamentals [23] - The company is confident in its ability to execute its strategies and create long-term value for shareholders [90] - Management noted strong demand for high-quality office space and a healthy pipeline of leasing activity [18][19] Other Important Information - The company has a strong balance sheet with low leverage, positioning it well to support leasing initiatives and capital allocation priorities [27] - The company is focused on enhancing guest experiences and operational efficiency at the Observatory [23] - The recent acquisition of a retail asset in Williamsburg reflects a disciplined approach to capital allocation [24][25] Q&A Session Summary Question: Can you talk about visitation trends for the Observatory and revised guidance? - Management noted 21 bad weather days in Q2 2025 compared to 8 in Q2 2024, impacting visitation and leading to a conservative guidance range [30][31] Question: Any potential headwinds from the mayoral race affecting leasing? - Management reported strong leasing activity and no signs of hesitation from prospective tenants despite political changes [34][35] Question: Are tenants concerned about space and renewing deals? - Management indicated a healthy pipeline of activity and noted that tenants are advised to move quickly due to reduced supply of quality space [42][44] Question: What are the return expectations for the Brooklyn acquisition? - The expected return for the Brooklyn acquisition is roughly sub 7%, with strong leasing interest already observed [51][53] Question: Update on the suburban office asset marketing process? - The suburban office asset remains on the market, with ongoing discussions and financing available [55] Question: Any change in tech tenant demand within the market? - Management reported broad-based demand across various industries, including tech, with no significant changes in tenant behavior [61] Question: Thoughts on the potential investment pipeline? - Management remains disciplined in evaluating new investments and recognizes the current market dynamics as creating potential opportunities [64][66] Question: Decision to add a family member to the board? - Management explained that the addition of George Malikin to the board was based on his qualifications and experience, enhancing the board's composition [70][72]

Financial Highlights - Core FFO per share was $0.22 [5] - Same-Store Property Cash NOI adjusted for non-recurring items decreased by 3.0% year-over-year [5] - The 2025 FFO guidance was revised to $0.83-$0.86, a $0.03 revision due to lower Observatory NOI guidance [5] - Liquidity stands at $0.7 billion [5] Portfolio & Leasing - Manhattan office portfolio is 93.8% leased [5, 12, 29] - Leased 222k sf in Manhattan and achieved +12.1% positive mark-to-market [5] - The company closed on the acquisition of a retail asset on North Sixth Street in Williamsburg for $31 million [5] Observatory - Observatory 2025 NOI guidance revised to $90-94 million [5] - Revenue per visitor increased by 2.3% year-over-year [5] Retail - Williamsburg retail properties are 91.2% leased with a 6.5-year WALT at income generating properties [73]

[Forward-looking Statements](index=2&type=section&id=Forward-looking%20Statements) This section outlines the company's forward-looking statements, emphasizing inherent risks and uncertainties that could cause actual results to differ - Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and beyond control, and should not be relied upon as predictions of future events[4](index=4&type=chunk) - Key risk factors include economic, market, political, and social impacts of catastrophic events, increased costs due to tariffs, reduced demand for space, increased borrowing costs, declining real estate valuations, and changes in governmental regulations[5](index=5&type=chunk) - The company assumes 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[6](index=6&type=chunk) [Supplemental Definitions of Non-GAAP Financial Measures](index=3&type=section&id=Supplemental%20Definitions%20of%20Non-GAAP%20Financial%20Measures) This section defines key non-GAAP financial measures like FFO, Core FAD, and EBITDA, explaining their calculation, use, and limitations [Funds From Operations (FFO)](index=3&type=section&id=Funds%20From%20Operations%20(FFO)) FFO, a NAREIT-defined non-GAAP measure, excludes real estate-related items from net income, useful for REIT comparison but with limitations - FFO is defined by NAREIT as net income (loss) (GAAP), excluding impairment write-off of investments in depreciable real estate, gains or losses from debt restructurings and sales of depreciable operating properties, plus real estate-related depreciation and amortization, less distributions to non-controlling interests and gains/losses from discontinued operations[7](index=7&type=chunk) - FFO is a **widely recognized non-GAAP financial measure for REITs**, useful for understanding financial performance and comparison among REITs, but it does not represent cash generated from operating activities and should not be considered an alternative to GAAP net income or cash flow[7](index=7&type=chunk) [Modified Funds From Operations (Modified FFO)](index=3&type=section&id=Modified%20Funds%20From%20Operations%20(Modified%20FFO)) Modified FFO adjusts traditional FFO by adding back amortization of below-market ground leases, providing a supplemental view of operating performance - Modified FFO adds back an adjustment for any below-market ground lease amortization to traditionally defined FFO[8](index=8&type=chunk) - This adjustment is considered useful due to the non-cash accounting treatment under GAAP for significantly below-market ground leases from the third quarter 2014 acquisition of two option properties[8](index=8&type=chunk) [Core Funds From Operations (Core FFO)](index=3&type=section&id=Core%20Funds%20From%20Operations%20(Core%20FFO)) Core FFO refines Modified FFO by excluding non-recurring items, aiming to provide a clearer measure of ongoing operating performance - Core FFO adds back to Modified FFO items such as loss on early extinguishment of debt, acquisition expenses, severance expenses, IPO litigation expense, and interest expense associated with property in receivership[9](index=9&type=chunk) - The Company believes Core FFO is an **important supplemental measure of its operating performance** because it excludes non-recurring items[9](index=9&type=chunk) [Core Funds Available for Distribution (Core FAD)](index=3&type=section&id=Core%20Funds%20Available%20for%20Distribution%20(Core%20FAD)) Core FAD is derived from Core FFO by adjusting for non-real estate depreciation, deferred financing costs, and recurring capital improvements to assess dividend funding ability - Core FAD is calculated by adding non-real estate depreciation and amortization, amortization of deferred financing costs, amortization of debt discounts, and non-cash compensation expenses to Core FFO[10](index=10&type=chunk) - It also deducts straight-line rent, amortization of debt premiums and above/below market rent revenue, and recurring capital improvements (leasing commissions, tenant improvements, capital expenditures)[10](index=10&type=chunk) - Core FAD is presented as a supplemental disclosure to provide useful information regarding the company's ability to fund its dividends[10](index=10&type=chunk) [Net Operating Income and Property Cash NOI (NOI)](index=3&type=section&id=Net%20Operating%20Income%20and%20Property%20Cash%20NOI%20(NOI)) NOI is a non-GAAP measure used to evaluate property performance, with Property Cash NOI further excluding Observatory NOI and non-cash rental adjustments - NOI is a non-GAAP measure used by management to evaluate and compare property performance, unaffected by the cost of funds, depreciation/amortization, acquisition expenses, or general and administrative expenses[11](index=11&type=chunk) - Property Cash NOI excludes Observatory NOI and the effects of straight-line rent, fair value lease revenue, and straight-line ground rent expense adjustment, providing a measure that more closely reflects **net cash generated at the property level**[11](index=11&type=chunk) [Same Store](index=3&type=section&id=Same%20Store) "Same Store" refers to properties owned throughout the entire comparative period, excluding recent acquisitions, dispositions, and specific property types for consistent comparison - Same Store properties are those owned by the Company throughout each period presented, ensuring meaningful comparisons of NOI between periods[12](index=12&type=chunk) - Same Store excludes properties acquired after the beginning of the earliest period presented or disposed of prior to the end of the latest period presented, properties held-for-sale, those in receivership, and multifamily properties[13](index=13&type=chunk) - As of June 30, 2025, Same Store excludes the North Sixth Street Collection (acquired in 2023-2025) and First Stamford Place (placed into receivership in May 2024 and title transferred in February 2025)[13](index=13&type=chunk) [EBITDA and Adjusted EBITDA](index=4&type=section&id=EBITDA%20and%20Adjusted%20EBITDA) EBITDA indicates debt incurrence and serviceability, while Adjusted EBITDA further adds back impairment charges and (gain) loss on property disposition - EBITDA is computed as net income plus interest expense, interest expense associated with property in receivership, income taxes, and depreciation and amortization[14](index=14&type=chunk) - EBITDA provides investors with an additional indicator of the company's ability to incur and service debt[14](index=14&type=chunk) - For Adjusted EBITDA, impairment charges and (gain) loss on disposition of property are added back[14](index=14&type=chunk) [Net Debt to Adjusted EBITDA](index=4&type=section&id=Net%20Debt%20to%20Adjusted%20EBITDA) This ratio assesses overall financial flexibility, capital structure, and leverage by comparing net debt to trailing twelve months Adjusted EBITDA - Net Debt to Adjusted EBITDA is computed 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[15](index=15&type=chunk) - The Company reviews this ratio as part of the management of its overall financial flexibility, capital structure, and leverage[15](index=15&type=chunk) [Company Profile](index=5&type=section&id=Company%20Profile) ESRT is a NYC-focused REIT owning and operating office, retail, and multifamily assets, including the Empire State Building, with a focus on energy efficiency [Overview](index=5&type=section&id=Overview) Empire State Realty Trust, Inc. (ESRT) is a NYC-focused REIT specializing in office, retail, and multifamily assets, with the Empire State Building as its flagship property - ESRT is a NYC-focused REIT owning and operating office, retail, and multifamily assets[16](index=16&type=chunk) - The flagship property is the Empire State Building, featuring its iconic Observatory[16](index=16&type=chunk) - The company is a recognized leader in energy efficiency and indoor environmental quality[16](index=16&type=chunk) [Board of Directors](index=5&type=section&id=Board%20of%20Directors) The Board of Directors includes Anthony E. Malkin as Chairman and CEO, alongside eight other directors, each chairing a key committee Board of Directors | Name | Role | | :--- | :--- | | Anthony E. Malkin | Chairman and Chief Executive Officer | | Steven J. Gilbert | Director, Lead Independent Director, Chair of the Compensation Committee | | 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 | | George L. W. Malkin | Director | | James D. Robinson IV | Director, Chair of the Nominating and Corporate Governance Committee | | Christina Van Tassell | Director | | Hannah Yang | Director | [Executive Management](index=5&type=section&id=Executive%20Management) The executive management team is led by Anthony E. Malkin as Chairman and CEO, with Christina Chiu as President, Thomas P. Durels overseeing Real Estate, and Steve Horn as CFO & Chief Accounting Officer Executive Management | Name | Role | | :--- | :--- | | 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](index=5&type=section&id=Company%20Information) Corporate headquarters are in New York, NY, with investor relations contact via email and ESRT as the NYSE trading symbol Company Contact Information | Category | Detail | | :--- | :--- | | Corporate Headquarters | 111 West 33rd Street, 12th Floor, New York, NY 10120 | | Investor Relations | IR@esrtreit.com | | New York Stock Exchange | Trading Symbol: ESRT | | Website | www.esrtreit.com | | Phone | (212) 687-8700 | [Research Coverage](index=5&type=section&id=Research%20Coverage) The company is covered by research analysts from several financial institutions, including Bank of America Merrill Lynch, Citi, and Wells Fargo Securities - ESRT is covered by research analysts from Bank of America Merrill Lynch, BMO Capital Markets Corp., BTIG, Citi, Evercore ISI, Green Street Advisors, KeyBanc Capital Markets, Wells Fargo Securities, LLC, and Wolfe Research[20](index=20&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) This section presents condensed consolidated financial statements, including balance sheets, statements of operations, and reconciliations to key non-GAAP metrics [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased slightly from **$4,114,380 thousand in Q1 2025 to $4,078,750 thousand in Q2 2025**, primarily due to reduced cash and cash equivalents Condensed Consolidated Balance Sheets (in thousands) | Item | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Assets** | | | | | | | Commercial real estate properties, net | $2,562,806 | $2,518,498 | $2,512,460 | $2,426,233 | $2,297,263 | | Cash and cash equivalents | $94,643 | $187,823 | $385,465 | $421,896 | $535,533 | | Total assets | $4,078,750 | $4,114,380 | $4,510,287 | $4,436,937 | $4,433,250 | | **Liabilities and Equity** | | | | | | | Mortgage notes payable, net | $691,440 | $691,816 | $692,176 | $692,989 | $700,348 | | Senior unsecured notes, net | $1,097,355 | $1,097,212 | $1,197,061 | $1,196,911 | $1,196,831 | | Total liabilities | $2,289,502 | $2,328,505 | $2,728,325 | $2,679,616 | $2,682,034 | | Total equity | $1,789,248 | $1,785,875 | $1,781,962 | $1,757,321 | $1,751,216 | | Total liabilities and equity | $4,078,750 | $4,114,380 | $4,510,287 | $4,436,937 | $4,433,250 | - The contract asset related to First Stamford Place was released on February 5, 2025, upon final resolution of the foreclosure process[23](index=23&type=chunk) [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 total revenues were **$191,250 thousand**, with net income attributable to common stockholders at **$6,519 thousand**, and diluted EPS at **$0.04** Condensed Consolidated Statements of Operations (in thousands, except per share amounts) | Item | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenues** | | | | | | | Rental revenue | $153,540 | $154,542 | $155,127 | $153,117 | $152,470 | | Observatory revenue | $33,899 | $23,161 | $38,275 | $39,382 | $34,124 | | Total revenues | $191,250 | $180,066 | $197,602 | $199,599 | $189,543 | | **Operating expenses** | | | | | | | Property operating expenses | $44,880 | $45,060 | $46,645 | $45,954 | $41,516 | | Total operating expenses | $156,128 | $154,278 | $154,662 | $154,253 | $150,182 | | Total operating income | $35,122 | $25,788 | $42,940 | $45,346 | $39,361 | | Net income | $11,385 | $15,778 | $18,793 | $22,796 | $28,555 | | Net income attributable to common stockholders | $6,519 | $9,220 | $11,168 | $13,541 | $17,071 | | Diluted EPS | $0.04 | $0.05 | $0.07 | $0.08 | $0.10 | | Dividends per share | $0.035 | $0.035 | $0.035 | $0.035 | $0.035 | - Rental revenue components include base rent and billed tenant expense reimbursement[27](index=27&type=chunk) [FFO, Modified FFO, Core FFO, FAD and EBITDA Reconciliation](index=8&type=section&id=FFO%2C%20Modified%20FFO%2C%20Core%20FFO%2C%20FAD%20and%20EBITDA%20Reconciliation) For Q2 2025, **Core FFO was $59,213 thousand** ($0.22 diluted per share), Core FAD was **$11,949 thousand**, and EBITDA was **$84,791 thousand** FFO, Modified FFO, Core FFO, FAD, and EBITDA (in thousands, except per share amounts) | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Income | $11,385 | $15,778 | $18,793 | $22,796 | $28,555 | | FFO attributable to common stockholders and the Operating Partnership | $57,255 | $49,429 | $60,892 | $65,355 | $63,099 | | Modified FFO attributable to common stockholders and the Operating Partnership | $59,213 | $51,387 | $62,850 | $67,313 | $65,057 | | Core FFO attributable to common stockholders and the Operating Partnership | $59,213 | $52,034 | $64,771 | $69,235 | $65,685 | | Core FAD | $11,949 | $1,209 | $2,957 | $46,569 | $32,521 | | EBITDA | $84,791 | $91,523 | $94,610 | $99,467 | $102,729 | | Adjusted EBITDA | $84,791 | $78,353 | $93,373 | $98,205 | $91,926 | | Diluted Core FFO per share and unit | $0.22 | $0.19 | $0.24 | $0.26 | $0.24 | [Highlights](index=9&type=section&id=Highlights) This section provides key operational and financial metrics for the company's office, retail, multifamily, and observatory segments, along with important financial ratios Office and Retail Metrics (Three Months Ended) | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Total rentable square footage | 8,626,395 | 8,617,292 | 8,616,284 | 8,592,481 | 8,549,496 | | Percent occupied | 89.0 % | 87.9 % | 88.6 % | 89.1 % | 88.9 % | | Percent leased | 92.9 % | 92.5 % | 93.5 % | 93.4 % | 93.1 % | | Total Same Store Property Cash NOI (excluding lease termination fees) | $67,280 | $65,565 | $68,351 | $69,151 | $71,507 | Multifamily and Observatory Metrics (Three Months Ended) | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Multifamily Cash NOI | $5,173 | $4,643 | $4,168 | $4,506 | $4,533 | | Total number of units | 743 | 732 | 732 | 732 | 727 | | Multifamily Percent occupied | 98.6 % | 99.0 % | 98.5 % | 96.8 % | 97.9 % | | Observatory NOI | $24,077 | $15,043 | $28,545 | $29,667 | $25,166 | | Number of visitors | 629,000 | 428,000 | 718,000 | 727,000 | 648,000 | | Change in visitors year-over-year | (2.9)% | (11.8)% | 1.0 % | (2.2)% | (2.7)% | Key Financial Ratios (Three Months Ended) | Ratio | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Debt to Total Market Capitalization | 46.9 % | 47.8 % | 44.0 % | 42.3 % | 46.4 % | | Net Debt to Total Market Capitalization | 45.8 % | 45.4 % | 39.5 % | 37.5 % | 39.9 % | | Debt to Adjusted EBITDA | 5.8x | 5.8x | 6.4x | 6.4x | 6.6x | | Net Debt to Adjusted EBITDA | 5.6x | 5.2x | 5.3x | 5.2x | 5.1x | | Core FFO Payout Ratio | 16 % | 19 % | 15 % | 14 % | 15 % | | Core FAD Payout Ratio | 82 % | 805 % | 324 % | 21 % | 30 % | | Core FFO per share - diluted | $0.22 | $0.19 | $0.24 | $0.26 | $0.24 | | Dividends declared and paid per share | $0.035 | $0.035 | $0.035 | $0.035 | $0.035 | [Selected Property Data](index=10&type=section&id=Selected%20Property%20Data) This section provides detailed operational data for the company's property portfolio, including NOI breakdowns, leasing activity, property information, lease expirations, top tenants, future cash rent, capital expenditures, and Observatory summary [Property Summary Net Operating Income](index=10&type=section&id=Property%20Summary%20Net%20Operating%20Income) For Q2 2025, total same store property cash NOI (excluding lease termination fees) was **$67,280 thousand**, a **5.9% year-over-year decrease** Same Store Property Cash NOI (excluding lease termination fees, in thousands) | Category | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Manhattan office portfolio | $63,589 | $61,548 | $64,110 | $65,069 | $67,165 | | Greater New York office portfolio | $1,393 | $1,584 | $1,769 | $1,651 | $1,825 | | Retail portfolio | $2,298 | $2,433 | $2,472 | $2,431 | $2,517 | | Total Same Store Property Cash NOI | $67,280 | $65,565 | $68,351 | $69,151 | $71,507 | | Percent change over prior year | (5.9)% | (1.9)% | (2.9)% | 5.2 % | 7.4 % | [Same Store Net Operating Income Reconciliation](index=11&type=section&id=Same%20Store%20Net%20Operating%20Income%20Reconciliation) Net Operating Income for Q2 2025 was **$101,201 thousand**, leading to total cash NOI of **$98,571 thousand**, and total Same Store property cash NOI (excluding lease termination fees) of **$67,280 thousand** Reconciliation of Net Income to Cash NOI and Same Store Cash NOI (in thousands) | Item | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Net income | $11,385 | $15,778 | $18,793 | $22,796 | $28,555 | | Net operating income | $101,201 | $91,076 | $105,917 | $109,346 | $104,478 | | Total cash NOI (including Observatory and lease termination fees) | $98,571 | $86,953 | $103,156 | $108,551 | $104,023 | | Total Same Store property cash NOI (excluding Observatory and lease termination fees) | $67,280 | $65,565 | $68,351 | $69,151 | $71,507 | | Multifamily Cash NOI | $5,173 | $4,643 | $4,168 | $4,506 | $4,533 | [Leasing Activity](index=12&type=section&id=Leasing%20Activity) In Q2 2025, the total office and retail portfolio executed **232,108 square feet of leases** with an average starting cash rent of **$80.01 psf**, a **7.0% increase** over previous rents [Total Office and Retail Portfolio Leasing](index=12&type=section&id=Total%20Office%20and%20Retail%20Portfolio%20Leasing) For Q2 2025, the total office and retail portfolio executed **232,108 square feet** across 22 leases, with a **7.0% increase** in average starting cash rent over previous rents Total Office and Retail Portfolio Leasing Activity (Three Months Ended) | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Total leases executed | 22 | 20 | 20 | 31 | 35 | | Weighted average lease term | 9.9 years | 8.4 years | 8.0 years | 7.0 years | 7.0 years | | Total square footage executed | 232,108 | 230,548 | 378,913 | 304,210 | 271,981 | | Average starting cash rent psf | $80.01 | $67.08 | $78.40 | $75.74 | $67.41 | | Percentage of new cash rent over previously escalated rents | 7.0 % | 9.5 % | 10.4 % | (4.7)% | 2.7 % | | Leasing commission costs per square foot | $31.62 | $22.39 | $21.73 | $19.67 | $18.87 | | Tenant improvement costs per square foot | $86.85 | $47.92 | $49.46 | $42.90 | $65.69 | | Total LC and TI per square foot | $118.47 | $70.31 | $71.19 | $62.57 | $84.56 | [Manhattan Office Portfolio Leasing](index=12&type=section&id=Manhattan%20Office%20Portfolio%20Leasing) Manhattan office new leases in Q2 2025 totaled **202,499 square feet** with a **14.5% increase** in cash rent over previous, while renewals saw an **(11.2)% decrease** Manhattan Office Portfolio Leasing Activity (Three Months Ended) | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Office - New Leases: Total square footage executed | 202,499 | 43,184 | 184,258 | 130,688 | 162,655 | | Office - New Leases: % of new cash rent over previously escalated rents | 14.5 % | 3.5 % | 19.4 % | 4.5 % | 4.8 % | | Office - Renewal Leases: Total square footage executed | 19,277 | 177,328 | 182,464 | 158,641 | 98,656 | | Office - Renewal Leases: % of new cash rent over previously escalated rents | (11.2)% | 12.3 % | 4.6 % | 1.2 % | (2.4)% | | Total Manhattan Office Portfolio: Total square footage executed | 221,776 | 220,512 | 366,722 | 289,329 | 261,311 | | Total Manhattan Office Portfolio: % of new cash rent over previously escalated rents | 12.1 % | 10.4 % | 10.8 % | 2.6 % | 2.0 % | [Retail Portfolio Leasing](index=13&type=section&id=Retail%20Portfolio%20Leasing) The retail portfolio executed **10,332 square feet** across 4 leases in Q2 2025, with average starting cash rent **(15.0)% lower** than previously escalated rents Retail Portfolio Leasing Activity (Three Months Ended) | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Total leases executed | 4 | 1 | — | 5 | 3 | | Total square footage executed | 10,332 | 1,181 | — | 12,792 | 8,990 | | Average starting cash rent psf | $268.92 | $193.00 | $— | $203.88 | $91.14 | | Percentage of new cash rent over previously escalated rents | (15.0)% | 5.0 % | — | (38.7)% | 21.5 % | [Multifamily Portfolio Occupancy](index=13&type=section&id=Multifamily%20Portfolio%20Occupancy) The multifamily portfolio maintained a high occupancy rate of **98.6%** in Q2 2025, with a total of **743 units** Multifamily Portfolio Occupancy (Three Months Ended) | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Percent occupied | 98.6 % | 99.0 % | 98.5 % | 96.8 % | 97.9 % | | Total number of units | 743 | 732 | 732 | 732 | 727 | [Commercial Property Detail](index=14&type=section&id=Commercial%20Property%20Detail) As of June 30, 2025, the total portfolio comprises **8,626,395 rentable square feet**, with **89.0% occupied** and **92.9% leased** [Office - Manhattan](index=14&type=section&id=Office%20-%20Manhattan) Manhattan office properties total **7,562,514 rentable square feet**, with **89.5% occupied** and **93.8% leased**, and the Empire State Building is the largest property Manhattan Office Properties (as of June 30, 2025) | Property Name | Rentable Square Feet | Percent Occupied | Percent Leased | Annualized Rent per Occupied Square Foot | | :--- | :--- | :--- | :--- | :--- | | The Empire State Building | 2,711,344 | 92.2 % | 96.6 % | $69.05 | | One Grand Central Place | 1,224,683 | 87.2 % | 93.3 % | $64.59 | | 1400 Broadway | 917,281 | 87.0 % | 94.5 % | $63.42 | | 111 West 33rd Street | 639,595 | 92.6 % | 94.3 % | $70.32 | | 250 West 57th Street | 476,831 | 81.6 % | 82.9 % | $71.46 | | 1359 Broadway | 456,634 | 89.3 % | 92.4 % | $59.71 | | 501 Seventh Avenue | 455,432 | 90.2 % | 90.2 % | $55.41 | | 1350 Broadway | 383,588 | 88.0 % | 97.0 % | $63.63 | | 1333 Broadway | 297,126 | 89.8 % | 89.8 % | $58.09 | | **Total/Weighted Average Office - Manhattan** | **7,562,514** | **89.5 %** | **93.8 %** | **$65.83** | [Office - Greater New York Metropolitan Area](index=14&type=section&id=Office%20-%20Greater%20New%20York%20Metropolitan%20Area) The Greater New York Metropolitan Area office portfolio consists of Metro Center in Stamford, CT, with **282,176 rentable square feet** and **74.1% occupied** Greater New York Metropolitan Area Office Properties (as of June 30, 2025) | Property Name | Location | Rentable Square Feet | Percent Occupied | Percent Leased | Annualized Rent per Occupied Square Foot | | :--- | :--- | :--- | :--- | :--- | :--- | | Metro Center | Stamford, CT | 282,176 | 74.1 % | 74.1 % | $58.12 | | **Total/Weighted Average Office - Greater New York Metropolitan Area** | | **282,176** | **74.1 %** | **74.1 %** | **$58.12** | [Retail Properties](index=14&type=section&id=Retail%20Properties) The retail portfolio totals **781,705 rentable square feet**, with **89.9% occupied** and **90.7% leased**, led by the North Sixth Street Collection Retail Properties (as of June 30, 2025) | Property Name | Location | Rentable Square Feet | Percent Occupied | Percent Leased | Annualized Rent per Occupied Square Foot | | :--- | :--- | :--- | :--- | :--- | :--- | | North Sixth Street Collection | Williamsburg - Brooklyn | 102,191 | 78.0 % | 78.0 % | $140.50 | | 112 West 34th Street | Penn Station -Times Sq. South | 93,057 | 100.0 % | 100.0 % | $269.82 | | The Empire State Building | Penn Station -Times Sq. South | 88,445 | 78.7 % | 78.7 % | $115.45 | | One Grand Central Place | Grand Central | 70,810 | 79.6 % | 79.6 % | $123.23 | | 1333 Broadway | Penn Station -Times Sq. South | 67,001 | 100.0 % | 100.0 % | $153.70 | | 250 West 57th Street | Columbus Circle - West Side | 63,443 | 93.2 % | 93.2 % | $145.19 | | 10 Union Square | Union Square | 58,049 | 88.2 % | 88.2 % | $155.91 | | 1542 Third Avenue | Upper East Side | 56,211 | 95.0 % | 100.0 % | $47.16 | | 1010 Third Avenue | Upper East Side | 38,235 | 100.0 % | 100.0 % | $91.49 | | 1359 Broadway | Penn Station -Times Sq. South | 29,247 | 99.4 % | 99.4 % | $76.37 | | 501 Seventh Avenue | Penn Station -Times Sq. South | 27,213 | 78.9 % | 89.4 % | $67.20 | | 77 West 55th Street | Midtown | 25,388 | 100.0 % | 100.0 % | $83.69 | | 1350 Broadway | Penn Station -Times Sq. South | 19,511 | 100.0 % | 100.0 % | $212.06 | | 1400 Broadway | Penn Station -Times Sq. South | 17,017 | 82.2 % | 82.2 % | $125.39 | | 561 10th Avenue | Hudson Yards | 11,822 | 100.0 % | 100.0 % | $136.90 | | 298 Mulberry Street | NoHo | 10,365 | 100.0 % | 100.0 % | $191.19 | | 345 East 94th Street | Upper East Side | 3,700 | 100.0 % | 100.0 % | $70.72 | | **Total/Weighted Average Retail Properties** | | **781,705** | **89.9 %** | **90.7 %** | **$141.83** | [Portfolio Expirations and Vacates Summary](index=15&type=section&id=Portfolio%20Expirations%20and%20Vacates%20Summary) The total office and retail portfolio has forecasted expirations of **257,553 square feet** for July to December 2025, with **90,953 square feet expected to vacate** [Total Office and Retail Portfolio Expirations](index=15&type=section&id=Total%20Office%20and%20Retail%20Portfolio%20Expirations) For July to December 2025, total office and retail expirations are **256,136 square feet**, with **90,953 square feet expected to vacate** Total Office and Retail Portfolio Expirations and Vacates Summary (in square feet) | Period | Total expirations | Renewals & relocations | New leases | Vacates | Unknown | | :--- | :--- | :--- | :--- | :--- | :--- | | March 31, 2025 (Actual) | 164,025 | 31,205 | 50,486 | 82,334 | — | | June 30, 2025 (Actual) | 79,269 | 8,483 | 21,120 | 49,666 | — | | Sep. 30, 2025 (Forecast) | 58,869 | 15,635 | — | 40,918 | 2,316 | | Dec. 31, 2025 (Forecast) | 197,267 | 14,461 | 126,391 | 50,035 | 6,380 | | July to Dec. 2025 (Forecast) | 256,136 | 30,096 | 126,391 | 90,953 | 8,696 | | Full Year 2026 (Forecast) | 510,412 | 119,513 | 19,463 | 229,314 | 142,122 | [Manhattan Office Portfolio Expirations](index=15&type=section&id=Manhattan%20Office%20Portfolio%20Expirations) Manhattan office portfolio has forecasted expirations of **249,590 square feet** for July to December 2025, with **84,760 square feet expected to vacate** Manhattan Office Portfolio Expirations and Vacates Summary (in square feet) | Period | Office and retail expirations | Renewals & relocations | New leases | Vacates | Unknown | | :--- | :--- | :--- | :--- | :--- | :--- | | March 31, 2025 (Actual) | 147,055 | 16,775 | 50,486 | 79,794 | — | | June 30, 2025 (Actual) | 77,329 | 8,483 | 21,120 | 47,726 | — | | July to Dec. 2025 (Forecast) | 249,590 | 30,096 | 126,391 | 84,760 | 8,343 | | Full Year 2026 (Forecast) | 416,307 | 117,842 | 19,463 | 212,716 | 66,286 | [Greater New York Metropolitan Area Office Portfolio Expirations](index=15&type=section&id=Greater%20New%20York%20Metropolitan%20Area%20Office%20Portfolio%20Expirations) The Greater New York Metropolitan Area office portfolio has forecasted expirations of **5,079 square feet** for July to December 2025, all expected to vacate Greater New York Metropolitan Area Office Portfolio Expirations and Vacates Summary (in square feet) | Period | Office expirations | Renewals & relocations | New leases | Vacates | Unknown | | :--- | :--- | :--- | :--- | :--- | :--- | | March 31, 2025 (Actual) | 2,540 | — | — | 2,540 | — | | June 30, 2025 (Actual) | — | — | — | — | — | | July to Dec. 2025 (Forecast) | 5,079 | — | — | 5,079 | — | | Full Year 2026 (Forecast) | 23,268 | — | — | — | 23,268 | [Retail Portfolio Expirations](index=15&type=section&id=Retail%20Portfolio%20Expirations) The retail portfolio has forecasted expirations of **1,467 square feet** for July to December 2025, with **1,114 square feet expected to vacate** Retail Portfolio Expirations and Vacates Summary (in square feet) | Period | Office expirations | Renewals & relocations | New leases | Vacates | Unknown | | :--- | :--- | :--- | :--- | :--- | :--- | | March 31, 2025 (Actual) | 14,430 | 14,430 | — | — | — | | June 30, 2025 (Actual) | 1,940 | — | — | 1,940 | — | | July to Dec. 2025 (Forecast) | 1,467 | — | — | 1,114 | 353 | | Full Year 2026 (Forecast) | 70,837 | 1,671 | — | 16,598 | 52,568 | [Tenant Lease Expirations](index=16&type=section&id=Tenant%20Lease%20Expirations) The total office and retail portfolio has **3.5% of rentable square feet expiring in 2025** and **5.8% in 2026**, representing **$19.6 million** and **$30.2 million** in annualized rent, respectively [Total Office and Retail Lease Expirations](index=16&type=section&id=Total%20Office%20and%20Retail%20Lease%20Expirations) For the total office and retail portfolio, **3.5% of rentable square feet** and annualized rent expire in 2025, with **5.8% of square feet** and **5.4% of annualized rent** expiring in 2026 Total Office and Retail Lease Expirations (as of June 30, 2025) | Year | Rentable Square Feet Expiring | Percent of Portfolio Rentable Square Feet Expiring | Annualized Rent | Percent of Annualized Rent | | :--- | :--- | :--- | :--- | :--- | | Total 2025 | 301,963 | 3.5 % | $19,610,246 | 3.5 % | | Total 2026 | 510,412 | 5.8 % | $30,162,300 | 5.4 % | | 2027 | 707,724 | 8.2 % | $47,867,236 | 8.6 % | | 2028 | 873,723 | 10.1 % | $52,913,755 | 9.5 % | | 2029 | 795,575 | 9.2 % | $68,365,795 | 12.3 % | | 2030 | 777,381 | 9.0 % | $58,892,496 | 10.6 % | | Thereafter | 1,930,006 | 22.7 % | $138,663,796 | 25.0 % | | **Total** | **8,626,395** | **100.0 %** | **$555,770,954** | **100.0 %** | [Manhattan Office Properties Lease Expirations](index=16&type=section&id=Manhattan%20Office%20Properties%20Lease%20Expirations) Manhattan office properties have **3.9% of rentable square feet** and **4.3% of annualized rent** expiring in 2025, with **5.5% of square feet** and **5.9% of annualized rent** expiring in 2026 Manhattan Office Properties Lease Expirations (as of June 30, 2025) | Year | Rentable Square Feet Expiring | Percent of Portfolio Rentable Square Feet Expiring | Annualized Rent | Percent of Annualized Rent | | :--- | :--- | :--- | :--- | :--- | | Total 2025 | 293,477 | 3.9 % | $18,956,024 | 4.3 % | | Total 2026 | 416,307 | 5.5 % | $26,093,135 | 5.9 % | | 2027 | 626,173 | 8.3 % | $38,399,735 | 8.7 % | | 2028 | 854,533 | 11.3 % | $50,714,632 | 11.4 % | | 2029 | 648,524 | 8.6 % | $42,748,001 | 9.6 % | | 2030 | 657,412 | 8.7 % | $44,481,444 | 10.0 % | | Thereafter | 1,769,596 | 23.2 % | $118,730,340 | 26.7 % | | **Total** | **7,562,514** | **100.0 %** | **$443,912,587** | **100.0 %** | [Greater New York Metropolitan Area Office Portfolio Lease Expirations](index=17&type=section&id=Greater%20New%20York%20Metropolitan%20Area%20Office%20Portfolio%20Lease%20Expirations) The Greater New York Metropolitan Area office portfolio has **1.8% of rentable square feet** and **2.4% of annualized rent** expiring in 2025, with **8.2% of square feet** and **11.9% of annualized rent** expiring in 2026 Greater New York Metropolitan Area Office Portfolio Lease Expirations (as of June 30, 2025) | Year | Rentable Square Feet Expiring | Percent of Portfolio Rentable Square Feet Expiring | Annualized Rent | Percent of Annualized Rent | | :--- | :--- | :--- | :--- | :--- | | Total 2025 | 5,079 | 1.8 % | $291,898 | 2.4 % | | Total 2026 | 23,268 | 8.2 % | $1,448,235 | 11.9 % | | 2027 | 21,546 | 7.6 % | $1,264,659 | 10.4 % | | 2028 | 11,480 | 4.1 % | $658,539 | 5.4 % | | 2029 | 12,208 | 4.3 % | $720,869 | 5.9 % | | 2030 | 42,827 | 15.2 % | $2,516,457 | 20.7 % | | Thereafter | — | — % | — | — % | | **Total** | **282,176** | **100.0 %** | **$12,148,780** | **100.0 %** | [Retail Properties Lease Expirations](index=17&type=section&id=Retail%20Properties%20Lease%20Expirations) Retail properties have **0.4% of rentable square feet** and **0.3% of annualized rent** expiring in 2025, with **9.1% of square feet** and **2.7% of annualized rent** expiring in 2026 Retail Properties Lease Expirations (as of June 30, 2025) | Year | Rentable Square Feet Expiring | Percent of Portfolio Rentable Square Feet Expiring | Annualized Rent | Percent of Annualized Rent | | :--- | :--- | :--- | :--- | :--- | | Total 2025 | 3,407 | 0.4 % | $362,324 | 0.3 % | | Total 2026 | 70,837 | 9.1 % | $2,620,930 | 2.7 % | | 2027 | 60,005 | 7.7 % | $8,202,842 | 8.2 % | | 2028 | 7,710 | 1.0 % | $1,540,584 | 1.5 % | | 2029 | 134,843 | 17.2 % | $24,896,925 | 25.0 % | | 2030 | 77,142 | 9.9 % | $11,894,595 | 11.9 % | | Thereafter | 160,410 | 20.5 % | $19,933,456 | 20.1 % | | **Total** | **781,705** | **100.0 %** | **$99,709,587** | **100.0 %** | [Largest Tenants and Portfolio Tenant Diversification by Industry](index=18&type=section&id=Largest%20Tenants%20and%20Portfolio%20Tenant%20Diversification%20by%20Industry) The top 20 largest tenants account for **32.71% of occupied square feet** and **36.94% of annualized rent**, with LinkedIn as the largest tenant [20 Largest Tenants](index=18&type=section&id=20%20Largest%20Tenants) LinkedIn is the largest tenant, occupying **423,544 square feet** (4.97% of portfolio) with an annualized rent of **$31.0 million** (5.58% of portfolio) 20 Largest Tenants (as of June 30, 2025) | Rank | Tenant | Property | Weighted Average Remaining Lease Term | Total Occupied Square Feet | Percent of Portfolio Rentable Square Feet | Annualized Rent | Percent of Portfolio Annualized Rent | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 1. | LinkedIn | Empire State Building | 10.3 years | 423,544 | 4.97 % | $31,010,761 | 5.58 % | | 2. | Flagstar Bank | 1400 Broadway | 14.2 years | 313,109 | 3.68 % | $19,600,190 | 3.53 % | | 3. | Centric Brands Inc. | Empire State Building | 3.3 years | 252,929 | 2.97 % | $14,255,159 | 2.56 % | | 4. | PVH Corp. | 501 Seventh Avenue | 2.7 years | 237,281 | 2.79 % | $13,507,462 | 2.43 % | | 5. | Institutional Capital Network, Inc. | One Grand Central Place | 15.6 years | 154,050 | 1.81 % | $11,012,076 | 1.98 % | | 6. | Sephora USA, Inc. | 112 West 34th Street | 3.6 years | 11,334 | 0.13 % | $10,563,141 | 1.90 % | | 7. | Target Corporation | 112 West 34th St., 10 Union Sq. | 12.6 years | 81,340 | 0.95 % | $9,543,763 | 1.72 % | | 8. | Macy's | 111 West 33rd Street | 4.9 years | 131,117 | 1.54 % | $9,520,794 | 1.71 % | | 9. | Coty Inc. | Empire State Building | 4.6 years | 157,892 | 1.85 % | $9,339,709 | 1.68 % | | 10. | URBAN OUTFITTERS | 1333 Broadway | 4.3 years | 56,730 | 0.67 % | $8,287,997 | 1.49 % | | **Total (Top 20)** | | | | **2,785,891** | **32.71 %** | **$205,388,467** | **36.94 %** | [Portfolio Tenant Diversification by Industry](index=18&type=section&id=Portfolio%20Tenant%20Diversification%20by%20Industry) The portfolio exhibits tenant diversification across various industries, based on annualized rent[71](index=71&type=chunk)[72](index=72&type=chunk) [Initial Cash Rent and Capital Expenditures](index=19&type=section&id=Initial%20Cash%20Rent%20and%20Capital%20Expenditures) The company expects **$69.6 million** in initial annual cash rent from commenced and signed leases, with Q2 2025 capital expenditures totaling **$61,572 thousand** [Initial Cash Rent Contributing to Cash NOI](index=19&type=section&id=Initial%20Cash%20Rent%20Contributing%20to%20Cash%20NOI) Initial annual cash rent contributing to Cash NOI from commenced and signed leases is projected to be **$69,647 thousand**, growing to **$67,981 thousand by 2029** Initial Cash Rent Contributing to Cash NOI (in thousands) | Expected Cash Commencement | Initial Annual Cash Rent | 2025 | 2026 | 2027 | 2028 | 2029 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Commenced leases in free rent period | $37,527 | $4,136 | $28,089 | $37,527 | $37,270 | $37,026 | | Signed leases not commenced | $32,120 | $466 | $5,026 | $21,021 | $26,367 | $30,955 | | **Total** | **$69,647** | **$4,602** | **$33,115** | **$58,548** | **$63,637** | **$67,981** | [Capital Expenditures](index=19&type=section&id=Capital%20Expenditures) Total capital expenditures for Q2 2025 were **$61,572 thousand**, primarily driven by second-generation tenant improvements and building improvements Capital Expenditures (in thousands) | Capital expenditures | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Tenant improvements - first generation | $39 | $174 | $2,744 | $— | $— | | Tenant improvements - second generation | $36,890 | $39,304 | $45,969 | $17,149 | $25,087 | | Leasing commissions - first generation | $— | $— | $98 | $138 | $129 | | Leasing commissions - second generation | $7,605 | $7,629 | $10,769 | $3,753 | $3,807 | | Building improvements - first generation | $236 | $— | $180 | $128 | $— | | Building improvements - second generation | $7,868 | $5,770 | $9,377 | $7,838 | $11,362 | | Non-recurring capital improvements | $8,934 | $2,910 | $14,420 | $2,825 | $5,979 | | **Total** | **$61,572** | **$55,787** | **$83,557** | **$31,831** | **$46,364** | [Observatory Summary](index=20&type=section&id=Observatory%20Summary) For Q2 2025, Observatory NOI was **$24,077 thousand**, with **629,000 visitors**, representing a **2.9% year-over-year decrease** in visitors and **21 bad weather days** Observatory NOI and Metrics (Three Months Ended) | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Observatory revenue | $33,899 | $23,161 | $38,275 | $39,382 | $34,124 | | Observatory expenses | $9,822 | $8,118 | $9,730 | $9,715 | $8,958 | | NOI | $24,077 | $15,043 | $28,545 | $29,667 | $25,166 | | Number of visitors | 629,000 | 428,000 | 718,000 | 727,000 | 648,000 | | Change in visitors year over year | (2.9)% | (11.8)% | 1.0 % | (2.2)% | (2.7)% | | Number of bad weather days ("BWD") | 21 | 13 | 8 | 8 | 8 | [Debt and Ground Lease Analysis](index=21&type=section&id=Debt%20and%20Ground%20Lease%20Analysis) This section details the company's debt structure, including types, interest rates, maturities, covenant compliance, and future ground lease commitments [Consolidated Debt Analysis](index=21&type=section&id=Consolidated%20Debt%20Analysis) As of June 30, 2025, total debt was **$2,072,478 thousand** with a weighted average interest rate of **4.34%** and **5.0 years maturity**, and the company is in compliance with all debt covenants [Debt Summary](index=21&type=section&id=Debt%20Summary) Total debt as of June 30, 2025, was **$2,072,478 thousand**, primarily fixed-rate, with a weighted average interest rate of **4.34%** and a weighted average maturity of **5.0 years** Debt Summary (as of June 30, 2025, in thousands) | Debt Type | Balance | Interest Rate | Maturity (Years) | | :--- | :--- | :--- | :--- | | Mortgage debt | $702,478 | 3.64 % | 5.8 | | Senior unsecured notes | $1,100,000 | 4.76 % | 5.2 | | Unsecured term loan facilities | $270,000 | 4.43 % | 2.3 | | **Total fixed rate debt** | **$2,072,478** | **4.34 %** | **5.0** | | Total variable rate debt | $— | — | — | | **Total debt** | **$2,072,478** | **4.34 %** | **5.0** | [Available Capacity](index=21&type=section&id=Available%20Capacity) The company has an unsecured revolving credit facility with a total capacity of **$620,000 thousand**, all of which was available as of June 30, 2025 Available Capacity (as of June 30, 2025, in thousands) | Facility | Total Facility | Outstanding at June 30, 2025 | Letters of Credit | Available Capacity | | :--- | :--- | :--- | :--- | :--- | | Unsecured revolving credit facility | $620,000 | $— | $— | $620,000 | [Covenant Summary](index=21&type=section&id=Covenant%20Summary) The company is in **compliance with all debt covenants** as of June 30, 2025, including Maximum Total Leverage of **32.7%** and Minimum Fixed Charge Coverage of **3.1x** Covenant Summary (as of June 30, 2025) | Covenant | Required | Current Quarter | In Compliance | | :--- | :--- | :--- | :--- | | Maximum Total Leverage | < 60% | 32.7 % | Yes | | Maximum Secured Leverage | < 40% | 11.6 % | Yes | | Minimum Fixed Charge Coverage | > 1.50x | 3.1x | Yes | | Minimum Unencumbered Interest Coverage | > 1.75x | 5.0x | Yes | | Maximum Unsecured Leverage | < 60% | 25.1 % | Yes | [Debt Detail](index=22&type=section&id=Debt%20Detail) The company's debt portfolio includes various mortgage notes and senior unsecured notes with stated interest rates ranging from **2.83% to 7.41%** and maturities extending from **2026 to 2035** Debt Detail (as of June 30, 2025, in thousands) | Debt Instrument | Stated Interest Rate (%) | Principal Balance | Maturity 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 % | $33,580 | 1/5/2028 | 30 years | | Metro Center | 3.59 % | $71,600 | 11/5/2029 | Interest only | | 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% | $6,106 | 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% | $13,092 | 11/1/2033 | 30 years | | Unsecured term loan facility (1) | SOFR plus 1.50% | $175,000 | 12/31/2026 | Interest only | | Unsecured term loan facility (2) | SOFR plus 1.50% | $95,000 | 3/8/2029 | Interest only | | Senior unsecured notes (Series B-K) | 3.61% - 7.41% | $1,100,000 | 2027-2034 | Interest only | | **Total / weighted average debt** | **4.34 %** | **$2,072,478** | | | [Debt Maturities and Ground Lease Commitments](index=23&type=section&id=Debt%20Maturities%20and%20Ground%20Lease%20Commitments) The company has significant debt maturities in **2030 ($508,600 thousand)** and **2033 ($439,007 thousand)**, with ground lease commitments totaling **$760 thousand in 2025** [Debt Maturities](index=23&type=section&id=Debt%20Maturities) The largest debt maturities are concentrated in **2030 ($508,600 thousand)** and **2033 ($439,007 thousand)**, representing **24.8%** and **21.3%** of total debt, respectively Debt Maturities (in thousands) | Year | Maturities | Amortization | Total | Percentage of Total Debt | Weighted Average Interest Rate of Maturing Debt | | :--- | :--- | :--- | :--- | :--- | :--- | | 2025 | $— | $1,868 | $1,868 | 0.1 % | N/A | | 2026 | $225,000 | $3,957 | $228,957 | 11.1 % | 4.06 % | | 2027 | $155,000 | $4,276 | $159,276 | 7.7 % | 4.13 % | | 2028 | $146,091 | $3,555 | $149,646 | 7.2 % | 4.06 % | | 2029 | $321,600 | $3,890 | $325,490 | 15.7 % | 5.72 % | | 2030 | $508,600 | $4,511 | $513,111 | 24.8 % | 3.67 % | | 2031 | $45,000 | $3,283 | $48,283 | 2.3 % | 7.32 % | | 2032 | $100,000 | $3,591 | $103,591 | 5.0 % | 3.61 % | | 2033 | $439,007 | $3,249 | $442,256 | 21.3 % | 4.20 % | | 2034 | $25,000 | $— | $25,000 | 1.2 % | 7.41 % | | 2035 | $75,000 | $— | $75,000 | 3.6 % | 3.73 % | | **Total debt** | **$2,040,298** | **$32,180** | **$2,072,478** | **100.0 %** | **4.34 %** | [Ground Lease Commitments](index=23&type=section&id=Ground%20Lease%20Commitments) Ground lease commitments total **$760 thousand in 2025** and **$1,503 thousand in 2026**, with no fair value market resets or escalations Ground Lease Commitments (in thousands) | Year | 1350 Broadway | 1400 Broadway | 111 West 33rd Street | Total | | :--- | :--- | :--- | :--- | :--- | | 2025 | $54 | $338 | $368 | $760 | | 2026 | $93 | $675 | $735 | $1,503 | | 2027 | $72 | $675 | $735 | $1,482 | | 2028 | $72 | $675 | $735 | $1,482 | | 2029 | $72 | $675 | $735 | $1,482 | | Thereafter | $1,482 | $22,950 | $34,851 | $59,283 | | **Total** | **$1,845** | **$25,988** | **$38,159** | **$65,992** | - The ground lease commitments have **no fair value market resets**, no step-ups, and no escalations[90](index=90&type=chunk)

Summary of Empire State Realty Trust (ESRT) Conference Call Company Overview - Empire State Realty Trust (ESRT) is a New York City-focused Real Estate Investment Trust (REIT) with a diversified portfolio across various sectors, including office, retail, multifamily, and the Empire State Building Observatory [2][3] Key Financial Metrics - Portfolio composition: approximately 60% office, 25% from the Empire State Building Observatory, and just under 20% from retail and multifamily [3] - Leasing statistics: - Office assets: 93% leased - Retail assets: 94% leased - Multifamily: 99% leased [3] - 2024 leasing performance: 1,300,000 square feet leased, with a positive lease rate absorption of nearly 600 basis points since the end of 2021 [4] Market Dynamics - New York City has outperformed other gateway cities in recovery from COVID-19, with limited new supply expected to continue due to high construction costs and long development timelines [3][4] - The office leasing environment in New York City is strong, with no deals paused or pulled back in recent negotiations [20][21] - The company has seen a positive trend in net effective rent and reduced pushback on rent increases [22] Observatory Performance - The Empire State Building Observatory has shown resilience through economic cycles and is expected to remain a positive contributor to cash flow, despite headwinds in tourism [5][6] - International visitors account for about 50% of admissions, with a noted decline in international tourism impacting performance [6][31] - The Observatory's earnings are typically weighted towards the second half of the year, historically representing 60% of net operating income (NOI) [6] Retail and Multifamily Insights - The retail portfolio consists of high foot traffic assets, with a weighted average lease term of 6.5 years and strong credit quality tenants [7] - Multifamily properties have added resiliency to cash flows, with virtually no new supply and high replacement costs [7][8] Balance Sheet and Capital Allocation - ESRT maintains a strong balance sheet with no floating rate debt exposure and a low leverage ratio of 5.2 times net debt to EBITDA [9] - The company has repurchased approximately $300 million in shares since 2020 and will consider future buybacks based on market conditions [9][10] - The transaction environment has become more active, with the company prepared to underwrite deals across retail, multifamily, and office sectors [10] Sustainability and Long-term Strategy - ESRT is committed to sustainability and has been an industry leader in healthy building performance [10] - The company aims to deliver long-term value to shareholders through operational excellence and strategic capital allocation [11] Future Outlook - The company is optimistic about growth in retail and multifamily segments, with plans to act on attractive investment opportunities as they arise [14][17] - The office market remains strong, with a diverse tenant base across various industries, including professional services and technology [26][27] - ESRT is focused on maintaining operational flexibility and capitalizing on market opportunities while managing risks associated with tourism and economic uncertainty [5][6][58]

PART I. FINANCIAL INFORMATION [ITEM 1. FINANCIAL STATEMENTS](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) Presents unaudited condensed consolidated financial statements for Q1 2025, covering balance sheets, operations, comprehensive income, equity, cash flows, and detailed notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased from **$4,510.3 million** to **$4,114.4 million**, driven by reduced cash and derecognized contract asset, with liabilities also decreasing | Metric | March 31, 2025 (millions) | December 31, 2024 (millions) | | :-------------------------------- | :-------------------------- | :-------------------------- | | Total assets | $4,114.4 | $4,510.3 | | Cash and cash equivalents | $187.8 | $385.5 | | Contract asset | — | $170.4 | | Total liabilities | $2,328.5 | $2,728.3 | | Total equity | $1,785.9 | $1,782.0 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Total revenues slightly decreased, but net income attributable to common stockholders significantly increased due to a gain on property disposition | Metric (millions) | 3 Months Ended March 31, 2025 | 3 Months Ended March 31, 2024 | Change (YoY) | | :----------------------------------- | :---------------------------- | :---------------------------- | :----------- | | Total revenues | $180.1 | $181.2 | -0.6% | | Total operating expenses | $154.3 | $150.1 | +2.8% | | Total operating income | $25.8 | $31.1 | -17.0% | | Net income | $15.8 | $10.2 | +54.5% | | Net income attributable to common stockholders | $9.2 | $5.7 | +62.9% | | Basic EPS | $0.06 | $0.03 | +100.0% | | Diluted EPS | $0.05 | $0.03 | +66.7% | | Dividends per share | $0.035 | $0.035 | 0.0% | - A significant gain on disposition of property of **$13.17 million** was recognized in Q1 2025, compared to none in Q1 2024, contributing to the increase in net income[10](index=10&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income decreased year-over-year, primarily due to an unrealized loss on interest rate swap valuation in 2025 | Metric (millions) | 3 Months Ended March 31, 2025 | 3 Months Ended March 31, 2024 | | :------------------------------------------------- | :---------------------------- | :---------------------------- | | Net income | $15.8 | $10.2 | | Unrealized gain (loss) on valuation of interest rate swap agreements | $(4.1) | $8.2 | | Other comprehensive income (loss) | $(5.2) | $5.9 | | Comprehensive income | $10.6 | $16.1 | | Comprehensive income attributable to common stockholders | $6.0 | $9.4 | [Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Total equity slightly increased from **$1,781.9 million** to **$1,785.9 million**, influenced by net income, equity compensation, and distributions | Metric (millions) | March 31, 2025 | December 31, 2024 | | :------------------------------------------------- | :------------- | :---------------- | | Total Empire State Realty Trust, Inc. stockholders' equity | $1,032.1 | $1,030.7 | | Non-controlling interests in the Operating Partnership | $723.9 | $721.3 | | Total equity | $1,785.9 | $1,782.0 | - Key changes in equity for Q1 2025 include **$9.22 million** in net income, **$4.41 million** in LTIP units equity compensation, and **$10.78 million** in total dividends and distributions[15](index=15&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow increased, investing cash flow decreased, and financing cash flow significantly increased due to debt repayments, leading to a substantial net cash decrease | Cash Flow Activity (millions) | 3 Months Ended March 31, 2025 | 3 Months Ended March 31, 2024 | | :----------------------------------- | :---------------------------- | :---------------------------- | | Net cash provided by operating activities | $83.1 | $70.9 | | Net cash used in investing activities | $(42.1) | $(71.3) | | Net cash used in financing activities | $(233.0) | $(21.3) | | Net decrease in cash and cash equivalents and restricted cash | $(191.9) | $(21.6) | | Cash and cash equivalents and restricted cash—end of period | $237.4 | $385.3 | - Financing activities in Q1 2025 included a **$100 million** repayment of unsecured senior notes and a **$120 million** repayment of the unsecured revolving credit facility[20](index=20&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanations of financial statements, covering business, accounting policies, acquisitions, debt, financial instruments, leases, legal, equity, and segment performance [1. Description of Business and Organization](index=12&type=section&id=1.%20Description%20of%20Business%20and%20Organization) ESRT is a NYC-focused REIT with a portfolio of **7.9 million sq ft** office, **0.8 million sq ft** retail, and **732** residential units, including the Empire State Building Observatory - ESRT's portfolio includes **7.9 million sq ft** of office, **0.8 million sq ft** of retail, and **732** residential units as of March 31, 2025[24](index=24&type=chunk) - The company owns approximately **60.3%** of the aggregate operating partnership units in its Operating Partnership[25](index=25&type=chunk) [2. Summary of Significant Accounting Policies](index=12&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) Financial statements adhere to GAAP with no material changes to accounting policies, consolidating controlled entities and utilizing estimates - No material changes to significant accounting policies from the Annual Report on Form 10-K for the year ended December 31, 2024[26](index=26&type=chunk) - Observatory business and multifamily business experience some seasonality, with Q1 accounting for approximately **18%** of annual Observatory revenue[28](index=28&type=chunk) [3. Acquisitions and Dispositions](index=16&type=section&id=3.%20Acquisitions%20and%20Dispositions) ESRT acquired **$195.0 million** in retail properties and a **10%** multifamily interest in 2024, and completed a consensual foreclosure in Q1 2025, yielding a **$13.2 million** gain - Acquired a portfolio of retail properties on North 6th Street in Williamsburg, Brooklyn for **$195.0 million** in September and October 2024[35](index=35&type=chunk) - Executed a buyout of a **10%** non-controlling interest in two multifamily properties for **$14.2 million** cash and assumption of **$18.0 million** in debt in March 2024[35](index=35&type=chunk) - Completed consensual foreclosure of First Stamford Place on February 5, 2025, resulting in a **$13.2 million** gain on disposition recognized in Q1 2025[37](index=37&type=chunk)[38](index=38&type=chunk) [4. Deferred Costs, Acquired Lease Intangibles and Goodwill](index=18&type=section&id=4.%20Deferred%20Costs,%20Acquired%20Lease%20Intangibles%20and%20Goodwill) Deferred costs slightly decreased to **$181.8 million**, while goodwill remained stable at **$491.5 million**, allocated across segments with no impairment | Metric (millions) | March 31, 2025 | December 31, 2024 | | :------------------------------------ | :------------- | :---------------- | | Total deferred costs, net | $181.8 | $184.0 | | Acquired below-market ground leases, net | $311.5 | $313.4 | | Goodwill | $491.5 | $491.5 | - Goodwill is allocated **$227.5 million** to the Observatory segment and **$264.0 million** to the real estate segment[40](index=40&type=chunk) [5. Debt](index=20&type=section&id=5.%20Debt) Total principal debt decreased to **$2,073.4 million** due to **$100.0 million** senior note and **$120.0 million** revolving credit facility repayments, with all debt covenants met | Debt Type (millions) | March 31, 2025 | December 31, 2024 | | :-------------------------- | :------------- | :---------------- | | Total mortgage debt | $703.4 | $704.3 | | Senior unsecured notes | $1,075.0 | $1,175.0 | | Unsecured term loan facility | $175.0 | $175.0 | | Unsecured term loan facility | $95.0 | $95.0 | | Unsecured revolving credit facility | — | $120.0 | | Total principal | $2,073.4 | $2,294.3 | - Repaid **$100.0 million** of Series A senior unsecured notes and **$120.0 million** on the unsecured revolving credit facility in Q1 2025[49](index=49&type=chunk)[54](index=54&type=chunk) - Aggregate required principal payments for 2026 are **$228.96 million**, including **$225.0 million** in maturities[46](index=46&type=chunk) [6. Accounts Payable and Accrued Expenses](index=23&type=section&id=6.%20Accounts%20Payable%20and%20Accrued%20Expenses) Total accounts payable and accrued expenses slightly increased to **$135.3 million**, driven by higher capital expenditures and accrued interest | Metric (millions) | March 31, 2025 | December 31, 2024 | | :------------------------------------------------- | :------------- | :---------------- | | Capital expenditures included in accounts payable and accrued expenses | $79.0 | $73.5 | | Accrued interest payable | $7.9 | $3.7 | | Total accounts payable and accrued expenses | $135.3 | $132.0 | [7. Financial Instruments and Fair Values](index=23&type=section&id=7.%20Financial%20Instruments%20and%20Fair%20Values) Derivative financial instruments, with **$448.5 million** notional value, manage interest rate risk, resulting in a **$7.0 million** fair value asset position and **$1.9 billion** fair value of debt - Aggregate notional value of interest rate swaps and caps was **$448.5 million** at March 31, 2025, down from **$664.0 million** at December 31, 2024[59](index=59&type=chunk) | Metric (millions) | March 31, 2025 | December 31, 2024 | | :------------------------------------------------- | :------------- | :---------------- | | Fair value of derivative instruments (asset position) | $7.0 | $13.1 | | Fair value of outstanding debt | $1,932.7 | $2,124.5 | | Book value of outstanding debt | $2,057.8 | $2,278.0 | - A net unrealized loss of **$(5.2) million** related to cash flow hedges was recognized in other comprehensive income for Q1 2025, compared to a **$5.9 million** gain in Q1 2024[62](index=62&type=chunk) [8. Leases](index=26&type=section&id=8.%20Leases) As lessor, Q1 2025 rental revenue was **$154.5 million**, with **$3.68 billion** in future minimum lease payments; as lessee, ground lease liabilities total **$28.1 million** | Rental Revenue (millions) | 3 Months Ended March 31, 2025 | 3 Months Ended March 31, 2024 | | :------------------------- | :---------------------------- | :---------------------------- | | Fixed payments | $136.0 | $136.4 | | Variable payments | $18.6 | $17.5 | | Total rental revenue | $154.5 | $153.9 | - Future contractual minimum lease payments (excluding tenant expense reimbursements) on non-cancellable operating leases total **$3.68 billion**, expiring through 2054[70](index=70&type=chunk) | Lessee Liabilities (millions) | March 31, 2025 | December 31, 2024 | | :----------------------------- | :------------- | :---------------- | | Right-of-use assets | $28.1 | $28.2 | | Ground lease liabilities | $28.1 | $28.2 | [9. Commitments and Contingencies](index=30&type=section&id=9.%20Commitments%20and%20Contingencies) Legal proceedings include a **$1.3 million** arbitration award under appeal; unfunded capital expenditures are **$110.9 million**, with environmental compliance and insurance also addressed - An arbitration award of approximately **$1.3 million** (inclusive of interest) was issued against the company in January 2024, affirmed on appeal in March 2025, with a motion for reargument filed[78](index=78&type=chunk) - Estimated unfunded capital expenditures (including tenant improvements and leasing commissions) are approximately **$110.9 million** as of March 31, 2025[81](index=81&type=chunk) - The company expects to pay no Local Law 97 fine on any covered building in its portfolio for the 2024-2029 enforcement period[88](index=88&type=chunk) [10. Equity](index=34&type=section&id=10.%20Equity) Outstanding equity includes **167.1 million** Class A shares and **110.7 million** OP Units; a **$500.0 million** repurchase program is active, with **$2.1 million** repurchased post-Q1, and new incentive grants were made | Equity Instrument | March 31, 2025 | | :------------------------------------------------- | :------------- | | Class A common stock shares outstanding | 167.1 million | | Class B common stock shares outstanding | 0.98 million | | Operating Partnership Units (OP Units) outstanding | 110.7 million | | REIT controlling interest in OP | 60.3% | - The Board authorized a **$500.0 million** repurchase program for Class A common stock and OP units, with **$500.0 million** remaining as of March 31, 2025. **$2.1 million** was repurchased subsequent to March 31, 2025[96](index=96&type=chunk) | LTIP Unit Grants (March 2025) | Units | Grant Date Fair Value (millions) | | :------------------------------ | :---- | :------------------------------ | | Time-based vesting LTIP units | 1,399,681 | $9.4 | | Market-based vesting LTIP units | 1,462,922 | $6.0 | | Performance-based vesting LTIP units | 969,328 | $6.0 | [11. Related Party Transactions](index=42&type=section&id=11.%20Related%20Party%20Transactions) The company earned **$0.4 million** in supervisory fees and **$0.1 million** in property management fees from affiliated entities in Q1 2025, along with other related party revenues | Related Party Revenue (millions) | 3 Months Ended March 31, 2025 | 3 Months Ended March 31, 2024 | | :-------------------------------- | :---------------------------- | :---------------------------- | | Supervisory fees | $0.4 | $0.3 | | Property management fees | $0.1 | $0.1 | | Other revenue (rent, support services) | $0.1 | $0.1 | [12. Segment Reporting](index=44&type=section&id=12.%20Segment%20Reporting) The company reports Real Estate and Observatory segments; Q1 2025 Real Estate NOI was **$91.2 million**, while Observatory NOI was **$(0.1) million** - The company's two reportable segments are Real Estate (office, retail, multifamily) and Observatory (Empire State Building)[122](index=122&type=chunk) | Segment NOI (millions) | 3 Months Ended March 31, 2025 | 3 Months Ended March 31, 2024 | | :---------------------- | :---------------------------- | :---------------------------- | | Real Estate Segment NOI | $91.2 | $92.8 | | Observatory Segment NOI | $(0.1) | $0.1 | | Total Net Operating Income | $91.1 | $92.9 | [13. Subsequent Events](index=46&type=section&id=13.%20Subsequent%20Events) No subsequent events were reported [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=47&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses Q1 2025 financial performance, liquidity, capital resources, portfolio activities, and future operational factors, including segment performance and non-GAAP measures [Overview](index=48&type=section&id=Overview) Q1 2025 highlights include **$9.2 million** net income attributable to common stockholders, **$52.0 million** Core FFO, and **231,000** rentable square feet of new leases signed - Net income attributable to common stockholders was **$9.2 million** for Q1 2025[135](index=135&type=chunk) - Core Funds From Operations (Core FFO) was **$52.0 million** attributable to common stockholders and the operating partnership[135](index=135&type=chunk) - Signed a total of **231,000** rentable square feet of new, renewal, and expansion leases[136](index=136&type=chunk) [Results of Operations](index=49&type=section&id=Results%20of%20Operations) Total revenues decreased **0.6%**, but net income attributable to common stockholders increased **62.9%**, with Real Estate rental revenue up and Observatory revenue down due to lower visitation | Metric (millions) | 3 Months Ended March 31, 2025 | 3 Months Ended March 31, 2024 | Change (YoY) | | :----------------------------------- | :---------------------------- | :---------------------------- | :----------- | | Total revenues | $180.1 | $181.2 | -0.6% | | Net income attributable to common stockholders | $9.2 | $5.7 | +62.9% | | Real Estate Segment Rental Revenue | $154.5 | $153.9 | +0.4% | | Observatory Revenue | $23.2 | $24.6 | -5.8% | - Rental revenue increase was primarily due to higher operating and real estate tax expense escalations (**$5.0 million** increase), partially offset by the net impact of acquisitions and dispositions (**$4.0 million** decrease)[140](index=140&type=chunk) - Observatory revenue decreased due to lower visitation, primarily attributed to the shift in the timing of the Easter holiday[144](index=144&type=chunk) [Liquidity and Capital Resources](index=51&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is supported by **$187.8 million** cash, operating cash flows, and **$620.0 million** available credit; total debt is **$2.1 billion** with a **4.30%** weighted average interest rate and **5.3**-year maturity | Metric | March 31, 2025 | | :------------------------------------------------- | :------------- | | Cash and cash equivalents | $187.8 million | | Available under unsecured revolving credit facility | $620.0 million | | Total consolidated indebtedness outstanding | $2.1 billion | | Weighted average interest rate on debt | 4.30% | | Weighted average maturity of debt | 5.3 years | - The company expects to meet short-term liquidity needs from cash flows, cash on hand, debt issuances, and available borrowing capacity[146](index=146&type=chunk) - The company was in compliance with all financial covenants related to its unsecured facilities as of March 31, 2025[151](index=151&type=chunk) [Capital Expenditures](index=55&type=section&id=Capital%20Expenditures) Total commercial portfolio capital expenditures decreased to **$8.8 million** in Q1 2025, with lower office tenant improvement costs and no retail tenant improvement costs | Capital Expenditures (millions) | 3 Months Ended March 31, 2025 | 3 Months Ended March 31, 2024 | | :------------------------------- | :---------------------------- | :---------------------------- | | Total Commercial Portfolio Capital Expenditures | $8.8 | $20.1 | | Office Properties Leasing Costs | 3 Months Ended March 31, 2025 | 3 Months Ended March 31, 2024 | | :------------------------------ | :---------------------------- | :---------------------------- | | Leasing commission costs per square foot | $22.18 | $19.86 | | Tenant improvement costs per square foot | $48.17 | $65.08 | - Expected additional costs of approximately **$110.9 million** for tenant improvements and leasing commissions under existing lease agreements[167](index=167&type=chunk) [Cash Flows](index=57&type=section&id=Cash%20Flows) Operating cash flow increased by **$12.2 million** to **$83.1 million**, investing cash flow decreased by **$29.2 million** to **$42.1 million**, and financing cash flow increased by **$211.7 million** to **$233.0 million** due to debt repayments - Net cash provided by operating activities increased by **$12.2 million** to **$83.1 million**[173](index=173&type=chunk) - Net cash used in investing activities decreased by **$29.2 million** to **$42.1 million**[174](index=174&type=chunk) - Net cash used in financing activities increased by **$211.7 million** to **$233.0 million**[175](index=175&type=chunk) [Net Operating Income (NOI)](index=57&type=section&id=Net%20Operating%20Income) NOI, a non-GAAP measure, decreased to **$91.1 million** in Q1 2025, used by management to evaluate property performance by excluding specific expenses | Metric (millions) | 3 Months Ended March 31, 2025 | 3 Months Ended March 31, 2024 | | :----------------- | :---------------------------- | :---------------------------- | | Net income | $15.8 | $10.2 | | Net operating income | $91.1 | $92.9 | - NOI excludes general and administrative costs, interest expense, depreciation and amortization, and gains/losses from property sales to focus on property-level operating performance[178](index=178&type=chunk) [Funds from Operations (FFO), Modified FFO, and Core FFO](index=59&type=section&id=Funds%20from%20Operations) FFO attributable to common stockholders and the Operating Partnership decreased to **$49.4 million** in Q1 2025, with Modified FFO and Core FFO also declining, providing REIT operating performance insights | Metric (millions) | 3 Months Ended March 31, 2025 | 3 Months Ended March 31, 2024 | | :------------------------------------------------- | :---------------------------- | :---------------------------- | | Funds from operations attributable to common stockholders and the Operating Partnership | $49.4 | $54.0 | | Modified funds from operations attributable to common stockholders and the Operating Partnership | $51.4 | $56.0 | | Core funds from operations attributable to common stockholders and the Operating Partnership | $52.0 | $56.5 | - FFO is defined by NAREIT as net income excluding impairment write-offs, gains/losses from sales of depreciable operating properties, plus real estate-related depreciation and amortization[181](index=181&type=chunk) - Core FFO further adjusts Modified FFO by adding back interest expense associated with property in receivership and loss on early extinguishment of debt[185](index=185&type=chunk) [Factors That May Influence Future Results of Operations](index=63&type=section&id=Factors%20That%20May%20Influence%20Future%20Results%20of%20Operations) Future results are influenced by **7.9%** available commercial space and **4.7%** expiring leases in 2025, **11.8%** lower Observatory visitors, and global economic uncertainties, offset by a diversified portfolio and strong balance sheet - Approximately **0.7 million** rentable square feet (**7.9%** of commercial portfolio) is available to lease, and leases representing **4.7%** and **6.5%** of net rentable square footage will expire in 2025 and 2026, respectively[189](index=189&type=chunk) - Observatory hosted **428,000** visitors in Q1 2025, an **11.8%** decrease from **485,000** visitors in Q1 2024, leading to a **5.8%** decrease in revenue[190](index=190&type=chunk) - The company's outlook acknowledges global economic uncertainty (inflation, interest rates, recession risk, geopolitical unrest) but emphasizes its diversified portfolio, strong balance sheet, and absence of near-term debt maturities[193](index=193&type=chunk)[194](index=194&type=chunk)[195](index=195&type=chunk) [Critical Accounting Estimates](index=63&type=section&id=Critical%20Accounting%20Estimates) No material changes to critical accounting estimates were reported from the Annual Report - No material changes to critical accounting estimates from the Annual Report[197](index=197&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK](index=65&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURE%20ABOUT%20MARKET%20RISK) The company manages interest rate risk from its revolving credit facility and debt refinancings using fixed-rate borrowings and derivative instruments with a **$448.5 million** aggregate notional value - The company's primary market risk exposure is to interest rate changes[198](index=198&type=chunk) - As of March 31, 2025, the company had interest rate SOFR swap and cap agreements with an aggregate notional value of **$448.5 million**[199](index=199&type=chunk) - The weighted average interest rate on the **$2.1 billion** of fixed-rate indebtedness outstanding was **4.30%** per annum[200](index=200&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=65&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting - Disclosure controls and procedures were evaluated and deemed effective as of March 31, 2025[203](index=203&type=chunk) - No material changes to internal control over financial reporting occurred during the period[204](index=204&type=chunk) PART II. OTHER INFORMATION [ITEM 1. LEGAL PROCEEDINGS](index=65&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) Legal proceedings are detailed in Note 9 of the Financial Statements - Refer to Note 9 Commitments and Contingencies for a description of legal proceedings[205](index=205&type=chunk) [ITEM 1A. RISK FACTORS](index=67&type=section&id=ITEM%201A.%20RISK%20FACTORS) No material changes to risk factors were reported from the Annual Report on Form 10-K - No material changes to risk factors as of March 31, 2025, referring to the Annual Report on Form 10-K for details[207](index=207&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=67&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) No unregistered equity sales occurred; a **$500.0 million** stock repurchase program is active, with **$2.1 million** repurchased post-Q1 2025 - No unregistered sales of equity securities[208](index=208&type=chunk) - The Board authorized a **$500.0 million** stock repurchase program, with **$500.0 million** remaining as of March 31, 2025. Subsequent to March 31, 2025, through May 7, 2025, **$2.1 million** of Class A common stock was repurchased at a weighted average price of **$6.90** per share[209](index=209&type=chunk) [ITEM 3. DEFAULTS UPON SENIOR SECURITIES](index=67&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) No defaults upon senior securities were reported - No defaults upon senior securities[210](index=210&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES](index=67&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) This item is not applicable to the company - Not Applicable[211](index=211&type=chunk) [ITEM 5. OTHER INFORMATION](index=67&type=section&id=ITEM%205.%20OTHER%20INFORMATION) No other material information was reported, and no Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted, terminated, or modified by directors or officers - No directors or officers adopted, terminated, or modified Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the three months ended March 31, 2025[213](index=213&type=chunk) [ITEM 6. EXHIBITS](index=68&type=section&id=ITEM%206.%20EXHIBITS) This section lists exhibits filed with Form 10-Q, including certifications, XBRL documents, and interactive data files - Includes certifications from the Chief Executive Officer and Principal Financial Officer (Exhibits 31.1, 31.2, 32.1, 32.2)[214](index=214&type=chunk) - XBRL Instance Document and Taxonomy Extension Documents are filed[214](index=214&type=chunk) [SIGNATURES](index=69&type=section&id=SIGNATURES) The report was signed by Stephen V. Horn, EVP, CFO & CAO of Empire State Realty Trust, Inc. on May 7, 2025 - Report signed by Stephen V. Horn, Executive Vice President, Chief Financial Officer & Chief Accounting Officer, on May 7, 2025[218](index=218&type=chunk)