Empire State Realty Trust, Inc. · NYSE:ESRT
Empire State Realty Trust — Q4 2024 Earnings Presentation
35 slides from Empire State Realty Trust's earnings presentation, Feb 20, 2025
Slide 1: Investor Presentation February 2025
EMPIRE STATE REALTY TRUST Investor Presentation February 2025 Empire Lounge at ESB CLA at One Grand Central Place @y Tripadvisor stof the Best #1 #1 Attraction | Attraction in the World inthe US 2024 2022-2024 ~ Empire State Building » Observatory:
Slide 2: Contents
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 Williamsburg Retail Acq
Slide 3: ESRT Overview: Why ESRT?
Zz ESRT OVERVIEW Why ESRT? ° ESRT puts points on the board with operating out-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 * Res
Slide 4: • • • • • • • 56% • • 25% • • •
• • • • • • • 56% • • 25% • • • • • • • 12% 2% • 5% • • • • • •
Slide 5: Company Priorities
Dn COMPANY PRIORITIES Laser Focused on Shareholder Value Manage Our Balance Sheet Vv 89%-91% Lease Space " Vv Occupancy (Commercial) Execute on capital allocation goals * On offense to pursue attractive acquisitions Maintain balance sheet flexibility * Tenants and brokers screen for landlords with b
Slide 6: 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 NYC office leased rate +160 bps Compete and Win PANN Actos + $1B invested in portfolio upgrades * Incre
Slide 7: 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® 16% 3,200,000 12% 2,800,000 10% 2,400,000 2,000,0
Slide 8: Strong & Flexible Balance Sheet
Dn COMPETITIVE ADVANTAGES Strong & Flexible Balance Sheet Flexibility Optionality * No floating rate debt exposure * Operating runway * Weighted average interest rate = 4.30%5 * Capital recycling * Well-laddered debt maturity schedule * External growth * Simple capital structure; entire portfolio 10
Slide 9: 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|
Slide 10: Capital Recycling Enhances Portfolio Quality
Dn COMPETITIVE ADVANTAGES Capital Recycling Enhances Portfolio Quality * Completed disposition 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 multifamily and retail asse
Slide 11: Icon Description automatically generated
• • • Icon Description automatically generated
Slide 12: Virtual Tour
Virtual Tour Icon Description automatically generated ✓ • • • • • • • • ✓ • • • • • Icon Description automatically generated
Slide 13: A con picture containing text, sign Icon
Acon picture containing text, sign Icon Icon Icon Icon Description Descriptionautomatically automatically generated generated Description automatically generated Description automatically generated Description automatically generated Description automatically generated — — — — —
Slide 14: Tenant feedback word cloud
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 15: 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 With Publicly Disclosed Terms 1Q23 -
Slide 16: Office: Strong & Diverse Tenant Mix
De OFFICE Strong & Diverse Tenant Mix Prime top of tier assets attract top quality tenants Technology, Media and Advertising mFinance, Insurance, Real Estate mConsumer Goods mOther Professional Services Legal Services Non-Profit 16 Linked KEARNEY ree ee ESPRESSO. Poona shutterstsck’ CITIZEN HOLDINGS
Slide 17: ESB Observatory
ESB Observatory Proven performer across all economic cycles, new competition, and a pandemic, with upside to NYC tourism recovery i House of the Dragon bACETE Tine. eam Activation (June) * “World’s Most Famous Building” * Inflation hedge * #1in the World and in the US by Tripadvisor * $165M renovati
Slide 18: starbucks reserve online shop Cheap - OFF 62% Icon Description automatically generated
• • • • • starbucks reserve online shop Cheap - OFF 62% Icon Description automatically generated starbucks reserve online shop Cheap - OFF 62%
Slide 19: 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 90.4% leased; 5.8-year WALT Tenants: Glossier, Sugarfish, Glowbar, Hermes, Nike, COS, Santander Work Café, The North Fac
Slide 20: ESRT Builds Scale on North 6th St. Retail 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 21: North Sixth Street Retail Corridor
Zz RETAIL North Sixth Street Retail Corridor i fi) V2 GLOWBAR™ Zasih. |): . ws . SUGARFISH | * Tp aie woaets = ca dt i i 85-87'N 6TH ST 2. N 6TH ST @ vie | | ee 132 N 6TH ST
Slide 22: Strength of the Williamsburg Market
22 RETAIL Strength of the Williamsburg Market Dynamic destination retail neighborhood specially created by zoning 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 projected thr
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 CARBON NEUTRAL AS OF 2022 REDUCED EMISSIONS in our entire . commercial portfolio since 2009 at the Empire State Building since 2007 PURCHASED WIND RECs for 1OO% of the commercial portfolio’s electrical usage since 2021, and for the Empire State Building since 2011 SUPPORT P
Slide 26: Conclusion
Conclusion 26 Unique NYC-focused portfolio comprised of modernized office assets; everyday retail in high foot traffic locations; well-located, well-amenitized multifamily assets; iconic Empire State Building Observatory Experience Well-positioned balance sheet affords flexibility to pursue capital
Slide 27: Appendix
Appendix 27 Overview Sustainability Awards & Achievements Sustainability Initiatives Sustainability Scorecard Sustainability Leadership Reconciliation of Non-GAAP Measures Footnotes Disclaimer
Slide 28: Sustainability Awards and Achievements
Sustainability Awards and Achievements PUBLISHED THE EMPIRE BUILDING PLAYBOOK ‘Owner's Guide to Low Carbon Retrofits Better Buildings CHALLENG US. DEPARTHIENT OF ENERGY Better Building Partner since 2018 2023 Project and Practice ‘Award Winner Department of Energy (DOE) Better Climate Challenge Part
Slide 29: Focus on Sustainability Initiatives
Focus on Sustainability Initiatives Sovironments! | soci SGovetnanc* NET ZERO AND CARBON NEUTRALITY « Net Zero target based on ROI and end of life investment ling by 2030 and the « Net Zero target at the Empire State Bui entire portfolio by 2035 * Published Empire Building Pl: k: An Owner’: Carbon R
Slide 30: Learn more about IEQ
Learn more about IEQ – Click Play Below Icon Description automatically generated
Slide 31: Sustainability Leadership
Sustainability Leadership 31 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 32: Reconciliation of Net Income to Cash NOI and Same Store Cash NOI
Three Months Ended Reconciliation of Net Income to Cash NOI and December 31, September 30, June 30, March 31, December 31, Same Store Cash NOI 18 2024 2024 2024 2024 2023 Net income $ 18,793 $ 22,796 $ 28,555 $ 10,215 $ 15,830 Add: General and administrative expenses 17,870 18,372 18,020 15,972 16,1
Slide 33: Reconciliation of Net Income to EBITDA and Adjusted EBITDA
19 Three Months Ended Twelve Months to Date 31-Dec-24 30-Sep-24 30-Jun-24 31-Mar-24 Rental revenue $ 541,006 $ 135,629 $ 132,492 $ 136,328 $ 136,557 Tenant expense reimbursement 73,590 19,498 20,625 16,142 17,325 Deduct: Straight-line rental revenues (11,283) (4,045) (2,277) (1,900) (3,061) Above/be
Slide 34: Footnotes
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Slide 35: Disclaimer
Disclaimer 35 This presentation 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 statement
Empire State Realty Trust — Q4 2024 Earnings Presentation on 6ix