Empire State Realty Trust, Inc. · NYSE:ESRT
Empire State Realty Trust — Q1 2025 Earnings Presentation
33 slides from Empire State Realty Trust's earnings presentation, Apr 30, 2025
Slide 1: Investor Presentation April 2025
Tripadvisor Bostof the Best #1 Attraction Attraction in the World inthe US 2024 2022-2024 4g \ Multi-Purpose Space at ESB EMPIRE STATE REALTY TRUST Investor Presentation April 2025 “ Empire’ State Building Lounge at ESB CLA at One Grand Central Place Observatory
Slide 2: Contents
ESRT Highlights ESRT Overview Company Priorities Competitive Advantages —_— Flight To Quality Contracted Rents and Tenant Expansions Contents Strong and Flexible Balance Sheet Portfolio Transformation & Redevelopment Capital Recycling ESRT Property Sector Highlights Office ESB Observatory Retail Wil
Slide 3: 1Q25 Highlights
ESRT HIGHLIGHTS 1Q25 Highlights Core FFO per share of $0.19 * Same-Store Property Cash NOI -1.9% year-over-year and +0.4% adjusted for non-recurring items * 2025 FFO guidance unchanged at $0.86-$0.89 * Occupancy, SS Property Cash NOI and Observatory guidance are unchanged Leasing fundamentals remain
Slide 4: ESRT Overview
Zz ESRT OVERVIEW Why ESRT? ° ESRT puts points on the board with operating performance ° Pure play NYC REIT with multiple drivers of upside ° Office, Observatory, Retail, Multifamily Empire State lone Grand Building Certtral Place 250 W. 7 ‘st * NYC is the international capital of the world * Resilie
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Slide 6: Company Priorities
Dn COMPANY PRIORITIES Laser Focused on Shareholder Value Manage Our Balance Sheet Vv 89%-91% Occupancy Lease Space Vv (Commercial) Execute on capital allocation goals * On offense to pursue attractive acquisitions Maintain balance sheet flexibility * Tenants and brokers screen for landlords with bal
Slide 7: Competitive Advantages: Top of Tier Quality Attracts Tenants
Dn COMPETITIVE ADVANTAGES Top of Tier Quality Attracts Tenants ESRT Outperforms Peers Top of Our Price Tier Assets * Proven Leasing Results * Fully Redeveloped and Modernized Buildings * Increased commercial portfolio leased rate +110bps + $1B invested in portfolio upgrades y/y in 125 to 92.5% * 95%
Slide 8: Competitive Advantages: Contracted Rents & Tenant Expansions
Dn COMPETITIVE ADVANTAGES Contracted Rents & Tenant Expansions * Mark-to-market upside to in-place rents ° Locked-in pipeline of signed leases as leases roll not commenced & free rent burn Mark-to-Market Upside Cumulative SLNC and Free-Rent Burn-Off® 14% 3,200,000 12% 2,800,000 10% 2,400,000 2,000,0
Slide 9: Competitive Advantages: Balance Sheet
Dn COMPETITIVE ADVANTAGES Balance Sheet Flexibility Optionality Allows ESRT to: * No floating rate debt exposure * Operating runway * Compete and win new tenants * Weighted average interest rate = 4.30% * Capital recycling * Be nimble * Well-laddered debt maturity schedule * External growth * Execut
Slide 10: Competitive Advantages: Portfolio Transformation Complete
Zz COMPETITIVE ADVANTAGES Portfolio Transformation Complete ~$1B invested to redevelop and create top of tier assets which are fully modernized, amenitized, energy efficient AFTER REDEVELOPMENT AFTER REDEVELOPMENT AFTER REDEVELOPMENT { Interactive, Museum} S Entrance Experience In Gueuing Area| 10
Slide 11: Capital Recycling Enhances Portfolio Quality
Dn COMPETITIVE ADVANTAGES Capital Recycling Enhances Portfolio Quality * Completed disposition without taxable gain of six suburban assets since early 2022 * 383 Main Avenue * 500 Mamaroneck * 10 Bank * Westport Retail (two assets) * First Stamford Place * Invested -$675M° (to date) into NYC multifa
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Slide 13: Virtual Tour
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Slide 15: Tenant testimonials
Leader Sustainability Energy Efficiency Healthy Building Fully Amenitized Fully Redeveloped Modernized Financially Stable Best-In-Class Balance Sheet Carbon Neutral Expansions Friendly Clean Great Staff Great Partners Helpful Location Professional Service Oriented
Slide 16: Office: Target the Deepest Part of the Market
De OFFICE Target the Deepest Part of the Market ESRT’s Top of Tier Assets satisfy the deepest pool of demand in the market by size, location, and price Attractive price point with Serves the deepest pool of our high-quality offering demand in the market All Deals 1@23 - 1@25'° All Deals With Publicl
Slide 17: Office: Strong & Diverse Tenant Mix
De OFFICE Strong & Diverse Tenant Mix Prime top of tier assets attract top quality tenants 17 Technology, Media and Advertising mFinance, Insurance, Real Estate mConsumer Goods mOther Professional Services Legal Services Non-Profit BOOKING HOLDINGS go°oo SKANSKA HNTB Surlington Linkedfi shutterstsck
Slide 18: ESB Observatory
Observatory annual revenue ($M) & ESB Observatory Proven performer across all economic cycles, new competition, and a pandemic, with upside to NYC tourism recovery * “World’s Most Famous Building” * #1in the World and in the US by Tripadvisor * Top Uber tourist attraction in the world" * Top 10 sear
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Slide 20: Retail: Assembled ~$250M portfolio on North 6th Street
RETAIL Assembled ~$250M portfolio on North 6* Street Assembled ~$250M portfolio on North 6 Street Acquisitions funded all-cash * ~$220M closed; ~$30M expected to close in mid-2025 91.2% leased; 5.7-year WALT Tenants: Glossier, Sugarfish, Glowbar, Hermes, Nike, COS, Santander Work Café, The North Fac
Slide 21: Retail: ESRT Builds Scale on North 6th St. Corridor
OWNED BY ESRT Es MB initial Acquisition (2023) RETAIL HB 2024 Acauisitions ESRT Builds Scale on North 6* St. Retail Corridor Over 500 linear feet of frontage on the shopping blocks of North Sixth St. between Wythe and Bedford Ave 4,123 residential units under construction in Williamsburg L-Train Bed
Slide 22: Retail: Strength of the Williamsburg Market
22 De RETAIL Strength of the Williamsburg Market Dynamic destination retail neighborhood specially created by zoning Y Population Density® * Daytime population of 125,000 people * 158,000 residents live within one mile 36% Population Growth within a mile over last decade 5.4% additional growth proje
Slide 23: Multifamily Portfolio Highlights
Multifamily Portfolio Highlights Benefits from strong NYC residential demand 23 ae Mulberry Street Mulberry St. & East Houston St. * Subway lines: B, D, F,M&6 * 96 Units, 100% free-market * Studio, 1BR, 2BR * Retail space leased to CVS * 24-hour doorman, fitness center, resident lounge, roof deck, l
Slide 24: Meet the Team
MEET THE TEAM Experienced and Aligned Management Management team has a deep understanding of NYC market, real estate and capital markets Anthony E. Malkin Christina Chiu Chairman & Chief Executive President Officer 5 years with ESRT 36 years with ESRT 23 years in industry 36 years in industry B.S. f
Slide 25: Sustainability Leadership
Sustainability Leadership Ranked 1st of Americas’ Listed Companies for the 2"4 consecutive year FRAMEWORKS AND CERTIFICATIONS Named ENERGY STAR Partner of the Year for 4¢" year in a row and achieved 2024 ENERGY STAR Sustained Excellence Award for 2" year in a row Sustained Excellence Achieved WELL H
Slide 26: Conclusion
Conclusion NYC-focused portfolio with multiple sources of NYC upside, including tourism, residential, retail and office demand everyday retail in high foot traffic locations; well-located, well-amenitized rv) Unique NYC-focused portfolio comprised of modernized office assets; multifamily assets; ico
Slide 27: Appendix Overview
Overview Sustainability Awards & Achievements Appendix Sustainability Leadership Reconciliation of Non-GAAP Measures Footnotes Disclaimer 27°55
Slide 28: Sustainability Awards and Achievements
Sustainability Awards and Achievements PUBLISHED THE EMPIRE BUILDING PLAYBOOK ‘Owner's Guide to Low Carbon Retrofits Better Buildings CHALLENGE US Detar OF ENACT Better Building Partner since 2018 2023 Project and Practice ‘Award Winner Department of Energy (DOE) Better Climate Challenge Partner 28
Slide 29: Sustainability Leadership
Sustainability Leadership 29 Our Chairman and CEO, Anthony E. Malkin is a recognized leader on sustainability initiatives for our local and national community =~ Chairman of the Real Estate Roundtable Sustainability Policy Advisory Committee = Was sole commercial owner member of NYC's Dept of Buildi
Slide 30: Reconciliation of Net Income to Cash NOI and Same Store Cash NOI
Reconciliation of Net Income to Cash NOI and March 31, December 31, September 30, June 30, March 31, Same Store Cash NOI 17 2025 2024 2024 2024 2024 Net income $ 15,778 $ 18,793 $ 22,796 $ 28,555 $ 10,215 Add: General and administrative expenses 16,940 17,870 18,372 18,020 15,972 Depreciation and am
Slide 31: Reconciliation of Net Income to EBITDA and Adjusted EBITDA
18 Three Months Ended Twelve Months March 31, December 31, September 30, June 30, to Date 2025 2024 2024 2024 Rental revenue $ 540,545 $ 136,096 $ 135,629 $ 132,492 $ 136,328 Tenant expense reimbursement 74,711 18,446 19,498 20,625 16,142 Deduct: Straight-line rental revenues (13,505) (5,283) (4,045
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Slide 33: Disclaimer
Disclaimer 33 This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We intend these forward-looking statemen
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