Empire State Realty Trust, Inc. · NYSE:ESRT
Empire State Realty Trust — Investor Presentation (October 2021)
31 slides from Empire State Realty Trust's investor presentation, October 2021
Slide 1: Investor Presentation October 2021
EMPIRE STATE REALTY TRUST Investor Presentation October 2021
Slide 2: Well-Positioned with Path to the Future
Well-Positioned with Path to the Future Balance sheet ° $582 million cash, $850 million undrawn revolving credit facility ° No outstanding debt maturity until 2024 Value proposition ° Energy efficient, Indoor Environmental Quality leadership, modernized for the 21st Century ° Benefits from the fligh
Slide 3: Strong and Flexible Balance Sheet
Strong and Flexible Balance Sheet AMPLE LIQUIDITY, MODEST LEVERAGE, NO OUTSTANDING DEBT MATURITY UNTIL 2024 $1.4BN 5.6x Total Liquidity Net Debt / Adj. Available EBITDA $582MM 34.7% Cash and S-T Net Debt / Investments Enterprise Value $850MM 74% of SF Undrawn Unencumbered Capacity on LOC Portfolio C
Slide 4: Flexible Balance Sheet
Flexible Balance Sheet EMPIRE STATE PEERS! Net Debt / 5 6x 9 5x Adj. EBITDA! Net Debt / t 34.7% ) Enterprise Value! CURRENT DEBT MATURITY PROFILE (As of September 30, 2021)? ($ millions) 1,018 $315 $319 — ~s5 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 and thereafter mUnsecured private placeme
Slide 5: Portfolio Overview
Portfolio Overview 10.1 Million Total erm st [no Gorman Rentable i Retail 7% Square Feet 100% c TM ST ° e Manhattan powered by % cet st le Office renewable wind 1 en 75% energy comst = ‘S7TH ST Psa wesc fe 77 wrest 25th sircot I : Zo0e 2 a 5 “eo 0 ° Seine rr wonw oven Earned GRESB 5 Star % Rating an
Slide 6: Varied Tenant Base
Varied Tenant Base JCDecaux shutterstock l &G Other Consumer Interpublic Group Non-Profit 12.6% Goods 4.5% ' 15.9% PartnerRe Media & Advertisin: H fe] Linked [f). 1% Legal Services Finance, > FRAG@MEN 5.3% EMPIRE STATE Insurance, HNTB ascap WortBwite REALTY TRUST Binin We oneare Music atte b Berkle
Slide 7: Tenant Expansions Fuel Leases
> Tenant Expansions Fuel Leases Cumulative Growth from Tenant Expansions 2,400,000 2,000,000 1,600,000 1,200,000 800,000 400,000 hs 9 6493690 1359208 298503 “os 2013 2014 2015 2016 Square Footage Tenants expand due to: * Proven execution * Buildings modernized for the 21st Century * Combination of l
Slide 8: Empire State
EMPIRE STATE Modernized for the 21st Century, energy efficient assets, Indoor Environmental Quality leadership Substantially lower price point versus rents for new construction/aged Class A, and offers much more than Class B
Slide 9: Embedded Upside From Contracted Revenue Growth
Embedded Upside From Contracted Revenue Growth $45M! Cumulative Cash Rent Contribution to Cash NOI $50 $45 $42.53M $43.97M $40 $35 @ $30 2 = $25 E $00 $20.94M $15 $10 $5 $1.65M $0 FC 2021 2022 2023 2024 = Burn-off of free rent m Signed leases not commenced 1 Includes an additional $1.1 million in cu
Slide 10: Norwalk Stamford White Plains
Highway Metro-North Railroad Metro-North Train Stop 684 Norwalk 95 Stamford White Plains 287 Harrison ~30 miles to Midtown Manhattan 10 Bank Street 500 Mamaroneck Avenue First Stamford Place Metro Center 383 Main Avenue
Slide 11: Observatory Performance
Observatory Performance CONSISTENT PERFORMANCE AMID ECONOMIC CYCLES, FX MOVEMENTS AND NEW ATTRACTIONS Observatory annual revenue! (millions) : 9/11Museum Opens = } (3.1Million Visitors $1312, $124.9977" han 5 $112.2 peveeeeeeeee $101.8 : : Financial $91.9 Top ofthe Rock =: Reopens i $80.6 (3.0 Milli
Slide 12: Hypothetical Observatory Admissions
Hypothetical Observatory Admissions Equivalent Quarterly Weighted Commentary: Average Admissions!: * Observatory visitor recapture vs 2019 was beyond our hypothetical in July and * 2Q2021: 17% of 2019 levels early August * Two factors reduced admissions below * 3Q2021:; 24% our hypothetical in balan
Slide 13: Observatory is a Global Brand
Observatory is a Global Brand 80% OF VISITORS DECIDE TO VISIT BEFORE LEAVING HOME! Demographics': What Differentiates the ESB 64% International, 36% Domestic > Global and Iconic brand built 47% of Visitors are 18-34 years through: old Top Foreign Countries!: * 90 years of popular cultural references
Slide 14: Observatory Ticket Mix
Observatory Ticket Mix ACTIVE MANAGEMENT OF TICKET MIX TO DRIVE REVENUE PER CAPITA Direct sales at full price is Premium experience largest source offerings capture incremental revenue Growth in Observatory Revenue Per Capita! $60.00 $50.00 $40.00 $30.00 $20.00 mAb gs ony PM SEE GF 6 GE Ge GO GE SN
Slide 15: ESRT Releases Inaugural Sustainability Report
ESRT Releases Inaugural Sustainability Report ESRT’s 2020 Sustainability Report is available on our sustainability website - click here to access EMPIRE STATE REALTY TRUST * Our first report states our industry-leading sustainability accomplishments and goals * Transparent and metrics-based disclosu
Slide 16: Sustainability Leadership
Sustainability Leadership ESG Integration Company-Wide Board of Directors’ oversight of ESG initiatives and matters with specific committee responsibility outlined in committee charters Our Chairman, President and CEO, Anthony E. Malkin is a recognized leader on sustainability initiatives for our lo
Slide 17: Social - Human Capital & Community
Social - Human Capital & Community Human Capital Development Goals * Actively engage with our employees on policy and company culture * Implement state of the art wellness programs * Increase employee training and education opportunities and participation * Increase the gender and ethnic diversity o
Slide 18: Governance
Governance Board Diversity * 22% female / 78% male * 22% minority / 78% white * Average age is 60 years old and average tenure is 5.2 years Board Practices * Board is balance of continuity (3 directors since 2013 IPO) and refreshment with 4 new directors in last 4 years, plus a CEO / chair and 1 mid
Slide 19: Management Team
Anthony E. Malkin Chairman, President & Chief Executive Officer 33 years with ESRT 33 years in industry AB. from Harvard College Management Team WW Christina Chiu Executive Vice President & Chief Financial Officer 1 year with ESRT 19 years in industry B.S. from New York University Stern School of Bu
Slide 20: Appendix
Slide 21: Environmental - Energy & Emissions
Environmental - Energy & Emissions Sustainability Goals and Progress Energy Goals Status: Progress: GOAL: + 50% reduction in 5O% energy use intensity Oo * 25% reduction in energy use intensity through by 2035! A 2020! driven by low eee a eee ine * 20% reduction of building utilization rates energy u
Slide 22: Indoor Environmental Quality (IEQ) & ESG Certification
Indoor Environmental Quality IEQ) & ESG Certification Sustainability Goals and Progress IEQ Goals Status: Progress: * Improve the IEQ in our * 1st commercial portfolio in the Americas buildings to improve SA to achieve WELL Health-Safety rating efficiencies, tenant safety * Perform comprehensive ann
Slide 23: Environmental - Waste & Water
Environmental - Waste & Water Sustainability Goals and Progress Waste & Recycling Goals * 75% waste diversion rate by 2035! + Reduce waste generation by 5% year over year! + Perform waste audits at 100% of buildings annually Status: Progress: WASTE DIVERSION GOAL: 22% \ 35% ) \ 75% ) 2018 baseline 2
Slide 24: ESRT Achieves GRESB STAR & WELL Health-Safety Ratings
ESRT Achieves GRESB 5 STAR & WELL Health-Safety Ratings First Commercial Portfolio in the Americas to Achieve the WELL Health-Safety Rating ’ “ B ¢ yy GRESB wow kw & & 2021 ESRT GRESB Recognition Achieved the highest possible GRESB 5 Star Rating ESRT’s score of 94 is the second-highest score in the
Slide 25: Tenant Re-Occupancy: Health and Safety
Tenant Re-Occupancy: Health and Safety Tenant Communications * Proactive communications inform tenants of the new health and safety protocols in preparation for their return to the office Cleaning & Air Quality ¢ Increased cleaning frequency of high touch points in common areas, reduced touchpoints
Slide 26: Observatory Reopening: Health and Safety
Observatory Reopening: Health and Safety Customer Communications * Our official website and our reseller partners will advise all prospective guests of our enhanced protocols and admission requirements, click here Indoor Environmental Quality & Cleaning *MERV 13 air filters ¢ Active bipolar ionizati
Slide 27: Observatory Valuation
Observatory Valuation INSTITUTIONAL APPETITE FOR OBSERVATORY SUM OF THE PARTS VALUES BOTH RENTAL ASSETS REVENUE AND RESIDUAL PROFIT STREAMS >» Recent market developments: Observatory Results - Full Year 2019! In $MM * KKR bought a majority stake in the Edge at Visitor Revenue 123 Hudson Yards. Addit
Slide 28: Reconciliation of Net Income to NOI and Cash NOI
Three Months Ended Year Ended Reconciliation of Net Income to NOI and September 30, June 30, March 31, December 31, September 30, December 31, Cash NOI 2021 2021 2021 2020 2020 2020 Net income (loss) $ (10,183) $ 4,411 $ (3,191) $ 710 $ (12,269) $ (22,889) Add: General and administrative expenses 14
Slide 29: Total Cash Revenues Reconciliation
Three Months Ended Twelve Months to September March 31, December 31, Date 30, 2021 June 30, 2021 2021 2020 Rental revenue $ 498,263 $ 125,455 $ 125,091 $ 126,231 $ 121,486 Tenant expense reimbursement 59,373 14,103 15,706 14,000 15,564 Deduct: Straight-line rental revenues (12,557) (3,087) (3,763) (
Slide 30: Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Three Months Ended September 30, June 30, March 31, December 31, September 30, 2021 2021 2021 2020 2020 Net income (loss) $ (10,183) $ 4,411 $ (3,191) $ 710 $ (12,269) Interest expense 23,577 23,422 23,554 23,001 23,360 Income tax expense (benefit) 20 (1,185) (2,106) (4,177) 38 Depreciation and amor
Slide 31: Forward-looking statements
This presentation includes “forward looking statements” within the meaning of the federal securities laws. Forward-looking statements may be identified by the use of words such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “estimates,” “contemplates
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