8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 22, 2016

EMPIRE STATE REALTY TRUST, INC.

(Exact Name of Registrant as Specified in its Charter)

Maryland	001-36105	37-1645259
(State or other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

EMPIRE STATE REALTY OP, L.P.

(Exact Name of Registrant as Specified in its Charter)

Delaware	001-36106	45-4685158
(State or other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

One Grand Central Place 60 East 42nd Street New York, New York	10165
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (212) 687-8700

n/a

(Former name or former address, if changed from last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

On February 22, 2016, Empire State Realty Trust, Inc. (the “Company” or “we”) issued a press release announcing its financial results for the fourth quarter of 2015. The press release referred to certain supplemental information that is available on the Company’s website. The press release and the supplemental information are attached hereto as Exhibits 99.1 and 99.2, respectively, and are incorporated by reference herein.

The information in Item 2.02 of this Current Report, including Exhibits 99.1 and 99.2, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. Such information shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, unless it is specifically incorporated by reference therein.

Item 7.01. Regulation FD Disclosure

As discussed in Item 2.02 above, the Company issued a press release regarding its financial results for the fourth quarter of 2015 and made available on its website certain supplemental information relating thereto.

The information in Item 7.01 of this Current Report is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that Section. Such information shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act or the Exchange Act, unless it is specifically incorporated by reference therein.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.	Description
99.1	Press Release announcing financial results for the fourth quarter of 2015
99.2	Supplemental report

Non-GAAP Supplemental Financial Measures

Funds From Operations (“FFO”)

We compute FFO in accordance with the “White Paper” on FFO published by the National Association of Real Estate Investment Trusts, or NAREIT, which defines FFO as net income (loss) (determined in accordance with GAAP), excluding impairment writedowns of investments in depreciable real estate and investments in in-substance real estate investments, gains or losses from debt restructurings and sales of depreciable operating properties, plus real estate-related depreciation and amortization (excluding amortization of deferred financing costs), less distributions to non-controlling interests and gains/losses from

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discontinued operations and after adjustments for unconsolidated partnerships and joint ventures. FFO is a widely recognized non-GAAP financial measure for REITs that we believe, when considered with financial statements determined in accordance with GAAP, is useful to investors in understanding financial performance and providing a relevant basis for comparison among REITs. In addition, FFO is useful to investors as it captures features particular to real estate performance by recognizing that real estate has generally appreciated over time or maintains residual value to a much greater extent than do other depreciable assets. Investors should review FFO, along with GAAP net income, when trying to understand an equity REIT’s operating performance. We present FFO because we consider it an important supplemental measure of our operating performance and believe that it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs. However, because FFO excludes depreciation and amortization and captures neither the changes in the value of our properties that result from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effect and could materially impact our results of operations, the utility of FFO as a measure of its performance is limited. There can be no assurance that FFO presented by us is comparable to similarly titled measures of other REITs. FFO does not represent cash generated from operating activities and should not be considered as an alternative to net income (loss) determined in accordance with GAAP or to cash flow from operating activities determined in accordance with GAAP. FFO is not indicative of cash available to fund ongoing cash needs, including the ability to make cash distributions. Although FFO is a measure used for comparability in assessing the performance of REITs, as the NAREIT White Paper only provides guidelines for computing FFO, the computation of FFO may vary from one company to another.

Modified Funds From Operations (“Modified FFO”)

Modified FFO adds back an adjustment for any above or below-market ground lease amortization to traditionally defined FFO. We consider this a useful supplemental measure in evaluating our operating performance due to the non-cash accounting treatment under GAAP, which stems from the July 2014 acquisition of two properties as they carry significantly below market ground leases, the amortization of which is material to our overall results. We present Modified FFO because we consider it an important supplemental measure of our operating performance in that it adds back the non-cash amortization of below-market ground leases. There can be no assurance that Modified FFO presented by us is comparable to similarly titled measures of other REITs. Modified FFO does not represent cash generated from operating activities and should not be considered as an alternative to net income (loss) determined in accordance with GAAP or to cash flow from operating activities determined in accordance with GAAP. Modified FFO is not indicative of cash available to fund ongoing cash needs, including the ability to make cash distributions.

Core Funds From Operations (“Core FFO”)

Core FFO adds back to Modified FFO the following items associated with the Company’s initial public offering, or IPO, and formation transactions: gain on consolidation of non-controlling

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entities, acquisition expenses, severance expenses and retirement equity compensation expenses. It also adds back private perpetual preferred exchange offering expenses, acquisition expenses, gain on settlement of lawsuit related to the Observatory, net of income taxes, deferred financing cost write-off, prepayment penalties, construction severance expenses and acquisition break-up fee. The Company presents Core FFO because it considers it an important supplemental measure of its operating performance in that it excludes items associated with its IPO and formation transactions and other non-recurring items. There can be no assurance that Core FFO presented by the Company is comparable to similarly titled measures of other REITs. Core FFO does not represent cash generated from operating activities and should not be considered as an alternative to net income (loss) determined in accordance with GAAP or to cash flow from operating activities determined in accordance with GAAP. Core FFO is not indicative of cash available to fund ongoing cash needs, including the ability to make cash distributions. In future periods, we may also exclude other items from Core FFO that we believe may help investors compare our results.

Core Funds Available for Distribution (“Core FAD”)

In addition to Core FFO, we present Core FAD by (i) adding to Core FFO non-real estate depreciation and amortization, the amortization of deferred financing costs, amortization of debt discounts and non-cash compensation expense and (ii) deducting straight line rent, recurring second generation leasing commissions, tenant improvements, prebuilts, capital expenditures, furniture, fixtures & equipment purchases, amortization of debt premiums and above/below market rent revenue. Core FAD is presented solely as a supplemental disclosure that management believes provides useful information regarding our ability to fund our dividends. Core FAD does not represent cash generated from operating activities and should not be considered as an alternative to net income (loss) determined in accordance with GAAP or to cash flow from operating activities determined in accordance with GAAP. Core FAD is not indicative of cash available to fund ongoing cash needs, including the ability to make cash distributions. There can be no assurance that Core FAD presented by us is comparable to similarly titled measures of other REITs.

Net Operating Income (“NOI”)

NOI is a non-GAAP financial measure of performance. NOI is used by investors and our management to evaluate and compare the performance of our properties and to determine trends in earnings and to compute the fair value of our properties as it is not affected by; (i) the cost of funds of the property owner, (i) the impact of depreciation and amortization expenses as well as gains or losses from the sale of operating real estate assets that are included in net income computed in accordance with GAAP, (iii) acquisition expenses and break-up fee, or (iv) general and administrative expenses and other gains and losses that are specific to the property owner. The cost of funds is eliminated from net operating income because it is specific to the particular financing capabilities and constraints of the owner. The cost of funds is also eliminated because it is dependent on historical interest rates and other costs of capital as well as past decisions made by us regarding the appropriate mix of capital which may have changed or may change in the future. Depreciation and amortization expenses as well as gains or losses from the sale of

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operating real estate assets are eliminated because they may not accurately represent the actual change in value in our office or retail properties that result from use of the properties or changes in market conditions. While certain aspects of real property do decline in value over time in a manner that is reasonably captured by depreciation and amortization, the value of the properties as a whole have historically increased or decreased as a result of changes in overall economic conditions instead of from actual use of the property or the passage of time. Gains and losses from the sale of real property vary from property to property and are affected by market conditions at the time of sale which will usually change from period to period. These gains and losses can create distortions when comparing one period to another or when comparing our operating results to the operating results of other real estate companies that have not made similarly timed, purchases or sales. We believe that eliminating these costs from net income is useful because the resulting measure captures the actual revenue, generated and actual expenses incurred in operating our properties as well as trends in occupancy rates, rental rates and operating costs. However, the usefulness of NOI is limited because it excludes general and administrative costs, interest expense, depreciation and amortization expense and gains or losses from the sale of properties, and other gains and losses as stipulated by GAAP, the level of capital expenditures and leasing costs necessary to maintain the operating performance of our properties, all of which are significant economic costs. NOI may fail to capture significant trends in these components of net income which further limits its usefulness. NOI is a measure of the operating performance of our properties but does not measure our performance as a whole. NOI is therefore not a substitute for net income as computed in accordance with GAAP. This measure should be analyzed in conjunction with net income computed in accordance with GAAP. Other companies may use different methods for calculating NOI or similarly entitled measures and, accordingly, our NOI may not-be comparable to similarly entitled measures reported by other companies that do not define the measure exactly as we do.

EBITDA

We compute EBITDA as net income plus perpetual preferred unit distributions, interest expense, income taxes, depreciation and amortization and acquisition expenses. We present EBITDA because we believe that EBITDA, along with cash flow from operating activities, investing activities and financing activities, provides investors with an additional indicator of its ability to incur and service debt. EBITDA should not be considered as an alternative to net income (determined in accordance with GAAP), as an indication of our financial performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP), or as a measure of its liquidity.

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SIGNATURE

Pursuant to the requirements of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	EMPIRE STATE REALTY TRUST, INC. (Registrant)
Date: February 22, 2016	By:	/s/ David A. Karp
	Name:	David A. Karp
	Title:	Executive Vice President and Chief Financial Officer

Pursuant to the requirements of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	EMPIRE STATE REALTY OP, L.P. (Registrant)
Date: February 22, 2016	By:	Empire State Realty Trust, Inc., as general partner
	By:	/s/ David A. Karp
	Name:	David A. Karp
	Title:	Executive Vice President and Chief Financial Officer

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EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release announcing financial results for the fourth quarter of 2015
99.2	Supplemental report

EX-99.1

EXHIBIT 99.1

EMPIRE STATE REALTY TRUST ANNOUNCES FOURTH QUARTER 2015 RESULTS

- Reports Core FFO of $0.25 Per Fully Diluted Share -

New York, New York, February 22, 2016 - Empire State Realty Trust, Inc. (NYSE: ESRT) (the “Company”), a real estate investment trust with office and retail properties in Manhattan and the greater New York metropolitan area, today reported its operational and financial results for the fourth quarter of 2015.

“We are pleased with our strong fourth quarter and full year 2015 results, including a 9% increase in full year Core FFO per share, which reflect the successful execution of our strategy to consolidate, redevelop and re-lease space to larger, higher credit quality tenants. During 2015, we leased approximately 1.2 million square feet of office and retail space, which represents 54% growth from the prior year. Most importantly, our leasing team achieved rent spreads in excess of 73.5% on the total portfolio and over 43% on new leases signed in our Manhattan office portfolio. Additionally, we overcame challenging New York City tourist trends and the opening of One World Trade Center’s observatory and produced full year revenue from our Observatory that was slightly in excess of the prior year,” stated John B. Kessler, Empire State Realty Trust’s President and Chief Operating Officer.

Mr. Kessler continued, “Finally, our well-capitalized, low-levered balance sheet, with limited near term debt maturities, enables us to support our future growth plans. In the coming years, we will continue to unlock the embedded, de-risked growth within our portfolio and create long term value for our shareholders, with whom our management team remains highly aligned. We had limited new net borrowings during the year and continue to maintain high levels of liquidity.”

Fourth Quarter Highlights

• Achieved Core Funds From Operations (“Core FFO”) of $0.25 per fully diluted share and net income attributable to the Company of $0.07 per fully diluted share.

• Total portfolio was 87.3% occupied; including signed leases not commenced (“SLNC”), the total portfolio was 89.1% leased at December 31, 2015.

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• Manhattan office portfolio (excluding the retail component of these properties) was 84.9% occupied; including SLNC, the Manhattan office portfolio was 87.2% leased at December 31, 2015.

• Retail portfolio was 94.3% occupied; including SLNC, the retail portfolio was 94.6% leased at December 31, 2015.

• Empire State Building was 86.7% occupied; including SLNC, the Empire State Building was 90.7% leased at December 31, 2015.

• Executed 39 leases, representing 198,216 rentable square feet across the total portfolio, achieving a 34.0% increase in mark-to-market rent over previous fully escalated rents on new, renewal, and expansion leases.

• Signed 23 new leases representing 111,307 rentable square feet in the fourth quarter 2015 for the Manhattan office portfolio (excluding the retail component of these properties), achieving an increase of 57.5% in mark-to-market rent over previous fully escalated rents.

• The Empire State Building Observatory revenue for the fourth quarter 2015 was $27.6 million.

• Declared a dividend in the amount of $0.085 per share for the fourth quarter 2015, which was paid on December 31, 2015.

Full Year Highlights

• Achieved Core FFO of $0.97 per fully diluted share and net income attributable to the Company of $0.29 per fully diluted share.

• Executed 245 leases, representing 1,209,145 rentable square feet across the total portfolio, achieving a 73.7% increase in mark-to-market rent over previously fully escalated rents on new, renewal, and expansion leases; 177 of these leases, representing 958,704 rentable square feet, were within the Manhattan office portfolio (excluding the retail component of these properties) capturing a 43.3% increase in mark-to-market rent over previously fully escalated rents on new, renewal and expansion leases.

• Executed 12 leases, representing 70,940 rentable square feet within the Manhattan retail portfolio, achieving a 474.1% increase in mark-to-market rent over previously fully escalated rents on new, renewal, and expansion leases.

• Signed 93 new leases representing 728,264 rentable square feet in 2015 for the Manhattan office portfolio (excluding the retail component of these properties), achieving an increase of 53.8% in mark-to-market rent over expired previously fully escalated rents.

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• The Empire State Building Observatory revenue grew 0.6% to $112.2 million from $111.5 million in 2014.

• Declared and paid aggregate dividends of $0.34 per share during 2015.

Financial Results for the Fourth Quarter 2015

Core FFO was $66.2 million, or $0.25 per fully diluted share, compared to $65.2 million, or $0.25 per fully diluted share, in the fourth quarter of 2014.

Modified FFO was $66.2 million, or $0.25 per fully diluted share, compared to $61.4 million, or $0.23 per fully diluted share, in the fourth quarter of 2014.

FFO was $64.2 million, or $0.24 per fully diluted share, compared to $59.4 million, or $0.22 per fully diluted share, in the fourth quarter of 2014.

Net income attributable to common stockholders was $8.3 million, or $0.07 per fully diluted share, compared to $4.1 million, or $0.04 per fully diluted share, in the fourth quarter of 2014.

Financial Results for the Year Ended December 31, 2015

Core FFO was $257.7 million, or $0.97 per fully diluted share, compared to $227.4 million, or $0.89 per fully diluted share, for the year ended December 31, 2014.

Modified FFO was $257.8 million, or $0.97 per fully diluted share, compared to $219.5 million, or $0.86 per fully diluted share, for the year ended December 31, 2014.

FFO was $249.9 million, or $0.94 per fully diluted share, compared to $214.8 million, or $0.84 per fully diluted share, for the year ended December 31, 2014.

Net income attributable to common stockholders was $33.7 million, or $0.29 per fully diluted share, compared to $26.7 million, or $0.27 per fully diluted share, for the year ended December 31, 2014.

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Portfolio Operations

As of December 31, 2015, the Company’s total portfolio contained 10.1 million rentable square feet of office and retail space and was 87.3% occupied. Percentage occupied was down 10 basis points from 87.4% at the end of the third quarter 2015, and down 130 basis points from 88.6% at the end of the fourth quarter 2014 as we continue to execute on our redevelopment plan. Including SLNC, the Company’s portfolio was 89.1% leased at December 31, 2015.

The Company’s office portfolio (excluding the retail component of these properties), containing 9.3 million rentable square feet, was 86.7% occupied at the end of the fourth quarter 2015, down 30 basis points from the end of the third quarter 2015, and down 150 basis points from the end of the fourth quarter 2014. Including SLNC, the Company’s office portfolio (excluding the retail component of these properties) was 88.6% leased at December 31, 2015.

The Manhattan office portfolio (excluding the retail component of these properties), containing 7.5 million rentable square feet was 84.9% occupied at the end of the fourth quarter 2015, down 50 basis points from the end of the third quarter 2015, and down 260 basis points from the end of the fourth quarter 2014. Including SLNC, the Company’s Manhattan office portfolio (excluding the retail component of these properties) was 87.2% leased at December 31, 2015.

The Company’s retail portfolio, containing approximately 723,000 rentable square feet, was 94.3% occupied at the end of the fourth quarter 2015, up 160 basis points from the end of the third quarter 2015, and up 110 basis points from the end of the fourth quarter 2014. Including SLNC, the Company’s retail portfolio was 94.6% leased at December 31, 2015.

Leasing

For the three months ended December 31, 2015, the Company executed 39 office leases within the total portfolio, comprising 198,216 rentable square feet.

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On a blended basis, the 39 new, renewal and expansion office leases signed within the total portfolio during the quarter had an average starting rental rate of $50.60 per rentable square foot, representing an increase of 34.0% over the prior in-place rent on a fully escalated basis.

Leases signed in the Fourth Quarter 2015 for the Manhattan office portfolio

• 23 new leases comprising 111,307 rentable square feet, with an average starting rental rate of $61.44 per rentable square foot, representing an increase of 57.5% over the prior in-place rent on a fully escalated basis, and

• 13 renewal leases, comprising 62,862 rentable square feet, with an average starting rental rate of $41.84 per rentable square foot, representing an increase of 1.8% over the prior in-place rent on a fully escalated basis.

Empire State Building

The Company continues to renovate and lease the 2.8 million rentable square foot Empire State Building, its flagship property. At December 31, 2015, the Empire State Building was 86.7% occupied; including SLNC, the Empire State Building was 90.7% leased.

During the fourth quarter 2015, the Company executed seven office leases at the Empire State Building, representing 27,235 rentable square feet in the aggregate.

The Observatory revenue for the fourth quarter 2015 was $27.6 million, compared to $28.2 million in the fourth quarter 2014. The Observatory hosted approximately 949,000 visitors in the fourth quarter 2015 compared to 997,000 visitors in the fourth quarter 2014. In the critical week between Christmas Eve and New Year’s Eve, there were three bad weather days in 2015 compared to one bad weather day in 2014. In the fourth quarter 2015, there was one bad weather day which fell on a weekend. This compares to the fourth quarter 2014, in which there were four bad weather days which fell on weekends.

For the year ended December 31, 2015, the Observatory hosted 4.1 million visitors, compared to 4.3 million visitors for the same period in 2014. Observatory revenue for the year ended December 31, 2015 was $112.2 million, a 0.6% increase from $111.5 million for the year ended December 31, 2014. Both full year 2015 and 2014 had 15 bad weather weekend days.

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Balance Sheet

As of December 31, 2015, the outstanding balance on the Company’s $800.0 million unsecured revolving credit facility was $40.0 million. The unsecured revolving credit facility has an accordion feature allowing for an increase in its maximum aggregate principal balance to $1.25 billion under certain circumstances.

At December 31, 2015, the Company had total debt outstanding of approximately $1.6 billion, with a weighted average interest rate of 4.12% per annum, and a weighted average term to maturity of 5.4 years. At December 31, 2015, the Company had no debt maturing during 2016. The Company’s consolidated debt to total market capitalization was approximately 25% as of December 31, 2015 and consolidated net debt to EBITDA was 4.9x.

Dividend

On December 31, 2015, the Company paid a dividend of $0.085 per share for the fourth quarter 2015 to holders of the Company’s Class A common stock and Class B common stock and to holders of the operating partnership’s Series ES, Series 250 and Series 60 operating partnership units (NYSE Arca: ESBA, FISK and OGCP, respectively) and Series PR operating partnership units. The Company paid a dividend of $0.15 per unit for the fourth quarter 2015 to holders of the operating partnership’s private perpetual preferred units.

Webcast and Conference Call Details

Empire State Realty Trust, Inc. will host a webcast and conference call, open to the general public, on Tuesday, February 23, 2016 at 8:30 am Eastern time.

The webcast will be available in the Investors section of the Company’s website at www.empirestaterealtytrust.com. To listen to a live broadcast, go to the site at least five minutes prior to the scheduled start time in order to register, download and install any necessary audio software. Shortly after the call, a replay of the webcast will be available for 90 days on the Company’s website.

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The conference call can be accessed by dialing 1-877-407-3982 for domestic callers or 1-201-493-6780 for international callers. A replay will be available shortly after the call and can be accessed by dialing 1-877-870-5176 for domestic callers or 1-858-384-5517 for international callers. The passcode for the replay is 13628305. A replay of the conference call will be available until March 1, 2016.

The Supplemental Report will be available prior to the conference call in the Investors section of the Company’s website, www.empirestaterealtytrust.com.

About Empire State Realty Trust

Empire State Realty Trust, Inc. (NYSE: ESRT), a leading real estate investment trust (REIT), owns, manages, operates, acquires and repositions office and retail properties in Manhattan and the greater New York metropolitan area, including the Empire State Building, the world’s most famous building. Headquartered in New York, New York, the Company’s office and retail portfolio covers 10.1 million rentable square feet, as of December 31, 2015, consisting of 9.3 million rentable square feet in 14 office properties, including nine in Manhattan, three in Fairfield County, Connecticut and two in Westchester County, New York; and approximately 723,000 rentable square feet in the retail portfolio.

Non-GAAP Financial Measures

The Company has used non-GAAP financial measures in this press release. A reconciliation of each non-GAAP financial measure and the comparable GAAP financial measure can be found on pages 11 and 12 of this release and in the Company’s supplemental report.

Forward-Looking Statements

This press release 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,” “pro forma,” “estimates,” “contemplates,” “aims,” “continues,” “would” or “anticipates” or the negative of these words and phrases or similar words

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or phrases. The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: changes in our industry, the real estate markets, either nationally or in Manhattan or the greater New York metropolitan area; resolution of the litigations and arbitration involving the company; reduced demand for office or retail space; general volatility of the capital and credit markets and the market price of our Class A common stock and our publicly-traded OP Units; changes in technology and market competition, which affect utilization of our broadcast or other facilities; changes in domestic or international tourism, including geopolitical events and currency exchange rates; defaults on, early terminations of, or non-renewal of leases by tenants; fluctuations in interest rates; declining real estate valuations and impairment charges; our failure to obtain necessary outside financing, including our unsecured revolving credit facility; decreased rental rates or increased vacancy rates; our failure to redevelop and reposition properties successfully or on the anticipated timeline or at the anticipated costs; difficulties in identifying properties to acquire and completing acquisitions; risks of real estate development (including our Metro Tower development site), including the cost of construction delays and cost overruns; and conflicts of interest affecting any of our senior management team.

While forward-looking statements reflect the Company’s good faith beliefs, they are not guarantees of future performance. The Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, or new information, data or methods, future events or other changes after the date of this press release, except as required by applicable law. For a further discussion of these and other factors that could impact the Company’s future results, performance or transactions, see the section entitled “Risk Factors” in the Annual Report on Form 10-K for the year ended December 31, 2014, and other risks described in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission. Prospective investors should not place undue reliance on any forward-looking statements, which are based only on information currently available to the Company (or to third parties making the forward-looking statements).

Contact:

Investors

Empire State Realty Trust Investor Relations

(212) 850-2678

IR@empirestaterealtytrust.com

Media

Brandy Bergman/Hugh Burns

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Sard Verbinnen & Co.

(212) 687-8080

Empire State Realty Trust, Inc.

Condensed Consolidated Statements of Income

(unaudited and amounts in thousands, except per share data)

	Three Months Ended December 31,
	2015			2014
Revenues
Rental revenue	$	113,957		$	112,259
Tenant expense reimbursement		19,638			18,160
Observatory revenue		27,647			28,167
Construction revenue		—			4,918
Third-party management and other fees		475			451
Other revenue and fees		3,483			6,456
Total revenues		165,200			170,411
Operating expenses
Property operating expenses		38,918			41,748
Ground rent expenses		2,332			2,375
Marketing, general and administrative expenses		9,678			9,251
Observatory expenses		8,162			7,831
Construction expenses		—			5,423
Real estate taxes		23,622			23,702
Depreciation and amortization		45,258			48,799
Total operating expenses		127,970			139,129
Total operating income		37,230			31,282
Interest expense		(17,194	)		(19,816	)
Income before income taxes		20,036			11,466
Income tax expense		(666	)		(502	)
Net income		19,370			10,964
Preferred unit distributions		(234	)		(235	)
Net income attributable to non-controlling interests		(10,884	)		(6,587	)
Net income attributable to common stockholders	$	8,252		$	4,142
Total weighted average shares
Basic		118,706			103,022
Diluted		266,048			265,779
Net income per share attributable to common stockholders
Basic	$	0.07		$	0.04
Diluted	$	0.07		$	0.04

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Empire State Realty Trust, Inc.

Condensed Consolidated Statements of Income

(unaudited and amounts in thousands, except per share data)

	Year Ended December 31,
	2015			2014
Revenues
Rental revenue	$	447,784		$	400,825
Tenant expense reimbursement		79,516			67,651
Observatory revenue		112,172			111,541
Construction revenue		1,981			38,648
Third-party management and other fees		2,133			2,376
Other revenue and fees		14,048			14,285
Total revenues		657,634			635,326
Operating expenses
Property operating expenses		160,969			151,048
Ground rent expenses		9,326			5,339
Marketing, general and administrative expenses		38,073			39,037
Observatory expenses		29,843			29,041
Construction expenses		3,222			38,596
Real estate taxes		93,165			82,131
Acquisition expenses		193			3,382
Depreciation and amortization		171,474			145,431
Total operating expenses		506,265			494,005
Total operating income		151,369			141,321
Interest expense		(67,492	)		(66,456	)
Income before income taxes		83,877			74,865
Income tax expense		(3,949	)		(4,655	)
Net income		79,928			70,210
Preferred unit distributions		(936	)		(476	)
Net income attributable to non-controlling interests		(45,262	)		(43,067	)
Net income attributable to common stockholders	$	33,730		$	26,667
Total weighted average shares
Basic		114,245			97,941
Diluted		266,621			254,506
Net income per share attributable to common stockholders
Basic	$	0.30		$	0.27
Diluted	$	0.29		$	0.27

10

Empire State Realty Trust, Inc.

Reconciliation of Net Income to Funds From Operations (“FFO”),

Modified Funds From Operations (“Modified FFO”) and Core Funds From Operations (“Core FFO”)

(unaudited and amounts in thousands, except per share data)

	Three Months Ended December 31,
	2015			2014
Net income	$	19,370		$	10,964
Preferred unit distributions		(234	)		(235	)
Real estate depreciation and amortization		45,085			48,711
FFO attributable to common stockholders and non-controlling interests		64,221			59,440
Amortization of below-market ground leases		1,958			2,001
Modified FFO attributable to common stockholders and non-controlling interests		66,179			61,441
Prepayment penalty expense and deferred financing cost write-off		—			3,771
Core FFO attributable to common stockholders and non-controlling interests	$	66,179		$	65,212
Total weighted average shares
Basic		266,048			265,779
Diluted		266,048			265,779
FFO per share
Basic	$	0.24		$	0.22
Diluted	$	0.24		$	0.22
Modified FFO per share
Basic	$	0.25		$	0.23
Diluted	$	0.25		$	0.23
Core FFO per share
Basic	$	0.25		$	0.25
Diluted	$	0.25		$	0.25

11

Empire State Realty Trust, Inc.

Reconciliation of Net Income to Funds From Operations (“FFO”),

Modified Funds From Operations (“Modified FFO”) and Core Funds From Operations (“Core FFO”)

(unaudited and amounts in thousands, except per share data)

	Year Ended December 31,
	2015			2014
Net income	$	79,928		$	70,210
Preferred unit distributions		(936	)		(476	)
Real estate depreciation and amortization		170,932			145,115
FFO attributable to common stockholders and non-controlling interests		249,924			214,849
Amortization of below-market ground leases		7,831			4,603
Modified FFO attributable to common stockholders and non-controlling interests		257,755			219,452
Acquisition break-up fee		(2,500	)		—
Prepayment penalty expense and deferred financing costs write-off		1,749			3,771
Construction severance expenses, net of income taxes		480			—
Acquisition expenses		193			3,382
Gain on settlement of lawsuit related to the Observatory, net of income taxes		—			(540	)
Private perpetual preferred exchange offering expenses		—			1,357
Core FFO attributable to common stockholders and non-controlling interests	$	257,677		$	227,422
Total weighted average shares
Basic		265,914			254,506
Diluted		265,914			254,506
FFO per share
Basic	$	0.94		$	0.84
Diluted	$	0.94		$	0.84
Modified FFO per share
Basic	$	0.97		$	0.86
Diluted	$	0.97		$	0.86
Core FFO per share
Basic	$	0.97		$	0.89
Diluted	$	0.97		$	0.89

12

Empire State Realty Trust, Inc.

Condensed Consolidated Balance Sheets

(unaudited and amounts in thousands)

	December 31,			December 31,
	2015			2014
Assets
Commercial real estate properties, at cost	$	2,276,330		$	2,139,863
Less: accumulated depreciation		(465,584	)		(377,552	)
Commercial real estate properties, net		1,810,746			1,762,311
Cash and cash equivalents		46,685			45,732
Restricted cash		65,880			60,273
Tenant and other receivables		18,782			23,745
Deferred rent receivables		122,048			102,104
Prepaid expenses and other assets		50,460			48,504
Deferred costs, net		310,679			357,462
Acquired below market ground leases, net		383,891			391,887
Goodwill		491,479			491,479
Total assets	$	3,300,650		$	3,283,497
Liabilities and equity
Mortgage notes payable	$	747,661		$	898,998
Senior unsecured notes		587,018			234,980
Unsecured term loan facility		262,545			—
Unsecured revolving credit facility		35,192			—
Term loan and credit facility		—			464,676
Accounts payable and accrued expenses		111,099			96,563
Acquired below market leases, net		104,171			138,859
Deferred revenue and other liabilities		31,388			27,876
Tenants’ security deposits		48,890			40,448
Total liabilities		1,927,964			1,902,400
Total equity		1,372,686			1,381,097
Total liabilities and equity	$	3,300,650		$	3,283,497

13

EX-99.2

EXHIBIT 99.2

EMPIRE STATE REALTY TRUST

Supplemental Operating and Financial Data

For the Quarter Ended December 31, 2015

Fourth Quarter 2015

Table of Contents	Page
Summary
Company Profile		3
Financial Highlights		4
Selected Property Data
Property Summary		5
Property Detail		10
Tenant Lease Expirations		11
Largest Tenants and Portfolio Tenant Diversification by Industry		14
Capital Expenditures and Redevelopment Program		15
Observatory Summary		16
Financial information
Condensed Consolidated Balance Sheets		17
Condensed Consolidated Statements of Income		18
Core FFO, Modified FFO, FFO, FAD and EBITDA		19
Net Operating Income		20
Consolidated Debt Analysis
Debt Summary		21
Debt Detail		22
Debt Maturities		23
Ground Leases		23
Supplemental Definitions		24

Forward-looking Statements

We make forward-looking statements in this supplemental package within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You should not rely on them as predictions of future events. For these statements, we claim the protections of the safe harbor for forward-looking statements contained in such Sections.

You can identify forward-looking statements by the use of forward-looking terminology such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “estimates,” “contemplates,” “aims,” “continues,” “would” or “anticipates” or similar words or phrases in the positive or negative. In particular, forward looking statements include those pertaining to our capital resources, portfolio performance, dividend policy, results of operations, anticipated growth in our portfolio from operations, acquisitions, and market conditions and demographics.

Forward-looking statements involve numerous risks and uncertainties, many of which are difficult to predict and generally beyond our control. They depend on assumptions, data or methods which may be incorrect or imprecise, and we may not be able to realize them. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all).

        The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: changes in our industry and markets, either nationally or in Manhattan or the greater New York metropolitan area; resolution of the litigations and arbitration involving our company; reduced demand for office or retail space; general volatility of the capital and credit markets and the market price of our Class A common stock and listed operating partnership units; changes in our business strategy; defaults on, early terminations of, or non-renewal of, leases by tenants; bankruptcy or insolvency of a major tenant or a significant number of smaller tenants; litigation; fluctuations in interest rates; increased operating costs; declining real estate valuations and impairment charges; availability, terms and deployment of capital; our failure to obtain necessary outside financing; our expected leverage; decreased rental rates or increased vacancy rates; breach of or the expiration of our ground lease; our failure to generate sufficient cash flows to service our outstanding indebtedness; our failure to redevelop, renovate and reposition properties successfully or on the anticipated timeline or at the anticipated costs; difficulties in identifying properties to acquire and completing acquisitions; risks of real estate acquisitions, dispositions and development (including our Metro Tower development site), including construction delays and cost overruns; our failure to operate acquired properties and operations successfully; our ability to manage our growth effectively; changes in governmental regulations, tax laws and rates and similar matters; estimates relating to our ability to make distributions to our securityholders in the future; our failure to qualify as a REIT; a future terrorist event in the U.S.; environmental uncertainties and risks related to adverse weather conditions and natural disasters; lack or insufficient amounts of insurance; financial market fluctuations; availability of, and our ability to attract and retain, qualified personnel; conflicts of interest affecting our senior management team; competition; changes in real estate and zoning laws and increases in real property tax rates; and our ability to comply with the laws, rules and regulations applicable to companies and, in particular, public companies. While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. We disclaim any obligation to update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, or new information, data or methods, future events or other changes after the date of this presentation, except as required by applicable law. For a further discussion of these and other factors that could impact our future results, performance or transactions, see the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2014 and other risks described in documents we subsequently file from time to time with the Securities and Exchange Commission.

Page 2

Fourth Quarter 2015

COMPANY PROFILE

Empire State Realty Trust, Inc., or the Company, is a leading real estate investment trust (REIT) that owns, manages, operates, acquires and repositions office and retail properties in Manhattan and the greater New York metropolitan area, including the Empire State Building, the world’s most famous building.

BOARD OF DIRECTORS
Anthony E. Malkin	William H. Berkman		Alice M. Connell
Chairman and Chief Executive	Director		Director, Chair of
Officer			Finance Committee
Thomas J. DeRosa	Steven J. Gilbert		S. Michael Giliberto
Director	Director, Lead Director		Director, Chair of
			Audit Committee
James D. Robinson IV
Director, Chair of Compensation and Nominating/Corporate
Governance Committees
EXECUTIVE MANAGEMENT
Anthony E. Malkin	John B. Kessler		Thomas P. Durels
Chairman and Chief Executive	President and Chief Operating		Executive Vice President and
Officer	Officer		Director of Leasing and
			Operations
David A. Karp	Thomas N. Keltner, Jr.
Executive Vice President and Chief	Executive Vice President,
Financial Officer	General Counsel and Secretary
COMPANY INFORMATION
Corporate Headquarters	Investor Relations		New York Stock Exchange
One Grand Central Place	David A. Karp		Trading Symbol: ESRT
60 East 42nd Street	IR@empirestaterealtytrust.com
New York, NY 10165 www.empirestaterealtytrust.com
(212) 687-8700
ANALYST COVERAGE
Firm	Analyst	Phone	Email
Bank of America Merrill Lynch	James Feldman	(646) 855-5808	james.feldman@baml.com
BMO Capital Markets Corp.	John Kim	(212) 885-4115	jp.kim@bmo.com
Capital One Securities, Inc.	Thomas Lesnick	(571) 633-8191	thomas.lesnick@capitalone.com
Goldman Sachs & Co.	Brad Burke	(917) 343-2082	brad.burke@gs.com
Green Street Advisors	Jed Reagan	(949) 640-8780	jreagan@greenstreetadvisors.com
KeyBanc Capital Markets	Craig Mailman	(917) 368-2316	cmailman@key.com
Stifel Nicolaus	John Guinee	(443) 224-1307	jwguinee@stifel.com
Wells Fargo Securities, LLC	Brendan Maiorana	(443) 263-6516	brendan.maiorana@wellsfargo.com

Page 3

Fourth Quarter 2015

Financial Highlights

(unaudited and dollars in thousands, except per share amounts)

	Three Months Ended
	December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015			December 31, 2014
Selected Items:
Revenue	$	165,200		$	175,779		$	164,773		$	151,882		$	170,411
EBITDA (1)	$	82,254		$	90,471		$	84,434		$	64,941		$	79,846
Cash net operating income (1)	$	83,066		$	89,490		$	84,926		$	67,656		$	78,161
Net income	$	19,370		$	26,085		$	26,585		$	7,888		$	10,964
Core funds from operations (“Core FFO”) (1)	$	66,179		$	70,573		$	68,255		$	52,670		$	65,212
Core funds available for distribution (“Core FAD”) (1)	$	52,552		$	59,197		$	55,903		$	42,645		$	49,546
Core FFO per share - diluted	$	0.25		$	0.27		$	0.26		$	0.20		$	0.25
Core FAD per share - diluted	$	0.20		$	0.22		$	0.21		$	0.16		$	0.19
Dividends declared and paid per share	$	0.085		$	0.085		$	0.085		$	0.085		$	0.085
Portfolio Statistics:
Number of properties		20			20			20			20			20
Total rentable square footage		10,063,752			10,087,018			10,042,025			10,018,399			10,014,264
Percent occupied (2)		87.3	%		87.4	%		88.0	%		87.6	%		88.6	%
Observatory Metrics:
Number of visitors		949,000			1,327,000			1,165,000			622,000			997,000
Change in visitors year over year		-4.8	%		-5.5	%		-4.7	%		-6.3	%		1.8	%
Observatory revenues	$	27,647		$	35,702		$	30,600		$	18,223		$	28,167
Change in revenues year over year		-1.8	%		0.1	%		0.7	%		5.2	%		10.9	%
Ratios:
Consolidated Debt to Total Market Capitalization (3)		25	%		26	%		26	%		24	%		25	%
Consolidated Debt and Perpetual Preferred Units to
Total Market Capitalization (3)		26	%		27	%		27	%		24	%		26	%
Consolidated Debt to EBITDA (4)		5.1	x		5.1	x		5.2	x		5.4	x		5.6	x
Consolidated Net Debt to EBITDA (4)		4.9	x		5.0	x		5.1	x		5.2	x		5.4	x
Interest Coverage Ratio		5.3	x		5.4	x		5.6	x		4.4	x		5.3	x
Core FFO Payout Ratio (5)		34	%		32	%		33	%		43	%		35	%
Core FAD Payout Ratio (6)		43	%		38	%		41	%		53	%		46	%
Class A common stock price at quarter end	$	18.07		$	17.03		$	17.06		$	18.81		$	17.58
Average closing price	$	17.95		$	17.19		$	18.01		$	18.15		$	16.28
Dividends per share - annualized	$	0.34		$	0.34		$	0.34		$	0.34		$	0.34
Dividend yield (7)		1.9	%		2.0	%		2.0	%		1.8	%		1.9	%
Private Perpetual Preferred Units outstanding ($16.62 liquidation value)		1,560,360			1,560,360			1,560,360			1,560,360			1,560,360
Class A common stock		118,903,312			116,823,306			113,119,634			110,598,327			106,030,449
Class B common stock		1,120,067			1,130,728			1,134,252			1,149,014			1,161,438
Operating partnership units		147,550,632			149,625,374			153,332,538			155,808,466			159,912,447
Total common stock and operating partnership units outstanding		267,574,011			267,579,408			267,586,424			267,555,807			267,104,334

Notes:

(1) Represents non-GAAP financial measures. For a discussion on what these metrics represent and why the Company presents them, see page 24 and for a reconciliation of these metrics to net income, see pages 19 and 20.

(2) Based on leases signed and commenced as of end of period.

(3) Market capitalization represents the sum of (i) Company’s common stock per share price as of December 31, 2015 multiplied by the total outstanding number of shares of common stock and operating partnership units as of December 31, 2015; (ii) the number of perpetual preferred units at December 31, 2015 multiplied by $16.62 and (iii) our outstanding indebtedness as of December 31, 2015.

(4) Calculated based on trailing 12 months EBITDA.

(5) Represents the amount of Core FFO paid out in distributions.

(6) Represents the amount of Core FAD paid out in distributions.

(7) Based on the closing price per share of Class A common stock on December 31, 2015.

Page 4

Fourth Quarter 2015

Property Summary

(unaudited and dollars in thousands, except per square foot amounts)

	Three Months Ended December 31, 2015
				Manhattan			Greater New York			Standalone
	Total			Office			Office			Retail
	Portfolio			Portfolio (1)			Portfolio			Portfolio			Observatory
Number of properties		20			9			5			6
Square feet		10,063,752			7,998,804			1,860,496			204,452
Occupancy (2)		87.3	%		85.4	%		93.9	%		100.0	%
Revenue	$	164,725		$	112,958		$	19,234		$	4,886		$	27,647
Operating expenses		(73,034	)		(54,884	)		(8,350	)		(1,638	)		(8,162	)
Net operating income		91,691			58,074			10,884			3,248			19,485
Straight-line rent		(5,892	)		(5,934	)		(23	)		65			—
Above/below-market lease amortization		(4,691	)		(4,691	)		—			—			—
Below-market ground lease amortization		1,958			1,958			—			—			—
Cash net operating income	$	83,066		$	49,407		$	10,861		$	3,313		$	19,485
Leasing activity
Total leases executed		39			36			3			—	(4)
Total square footage executed		198,216			174,169			24,047			—
Average rent psf - leases executed	$	50.60		$	53.66		$	25.05		$	—
Previously escalated rents psf	$	37.75		$	39.25		$	26.43		$	—
Percentage of new rent over previously escalated rents		34.0	%		36.7	%		-5.2	%		—
Leasing commission costs per square foot	$	14.82		$	15.98		$	6.41		$	—
Tenant improvement costs per square foot		47.66			50.52			26.94			—
Total LC and TI per square foot (3)	$	62.48		$	66.50		$	33.35		$	—

Total Portfolio	Office			Retail		Total
Total square footage executed		198,216			—		198,216
Average rent psf - leases executed	$	50.60		$	—	$	50.60
Previously escalated rents psf	$	37.75		$	—	$	37.75
Percentage of new rent over previously escalated rents		34.0	%		—		34.0	%
Manhattan Office Portfolio	Office			Retail		Total
Total square footage executed		174,169			—		174,169
Average rent psf - leases executed	$	53.66		$	—	$	53.66
Previously escalated rents psf	$	39.25		$	—	$	39.25
Percentage of new rent over previously escalated rents		36.7	%		—		36.7	%

Page 5

Fourth Quarter 2015

Property Summary

(unaudited and dollars in thousands, except per square foot amounts)

	Three Months Ended September 30, 2015
				Manhattan			Greater New York			Standalone
	Total			Office			Office			Retail
	Portfolio			Portfolio (1)			Portfolio			Portfolio			Observatory
Number of properties		20			9			5			6
Square feet		10,087,018			8,021,017			1,861,549			204,452
Occupancy (2)		87.4	%		85.7	%		93.6	%		100.0	%
Revenue	$	172,661		$	112,633		$	19,426		$	4,900		$	35,702
Operating expenses		(74,892	)		(57,790	)		(8,345	)		(1,473	)		(7,284	)
Net operating income		97,769			54,843			11,081			3,427			28,418
Straight-line rent		(5,441	)		(5,608	)		97			70			—
Above/below-market lease amortization		(4,795	)		(4,795	)		—			—			—
Below-market ground lease amortization		1,957			1,957			—			—			—
Cash net operating income	$	89,490		$	46,397		$	11,178		$	3,497		$	28,418
Leasing activity
Total leases executed		67			55			12			—
Total square footage executed		338,477			286,746			51,731			—
Average rent psf - leases executed	$	53.55		$	57.08		$	33.96		$	—
Previously escalated rents psf	$	39.82		$	40.91		$	33.75		$	—
Percentage of new rent over previously escalated rents		34.5	%		39.5	%		0.6	%		—
Leasing commission costs per square foot	$	14.57		$	16.08		$	6.24		$	—
Tenant improvement costs per square foot		55.16			59.29			32.30			—
Total LC and TI per square foot (3)	$	69.73		$	75.37		$	38.54		$	—

Total Portfolio	Office			Retail			Total
Total square footage executed		335,904			2,573			338,477
Average rent psf - leases executed	$	51.89		$	269.80		$	53.55
Previously escalated rents psf	$	39.06		$	138.63		$	39.82
Percentage of new rent over previously escalated rents		32.9	%		94.6	%		34.5	%
Manhattan Office Portfolio	Office			Retail			Total
Total square footage executed		284,173			2,573			286,746
Average rent psf - leases executed	$	55.15		$	269.80		$	57.08
Previously escalated rents psf	$	40.02		$	138.63		$	40.91
Percentage of new rent over previously escalated rents		37.8	%		94.6	%		39.5	%

Page 6

Fourth Quarter 2015

Property Summary

(unaudited and dollars in thousands, except per square foot amounts)

	Three Months Ended June 30, 2015
				Manhattan			Greater New York			Standalone
	Total			Office			Office			Retail
	Portfolio			Portfolio (1)			Portfolio			Portfolio			Observatory
Number of properties		20			9			5			6
Square feet		10,042,025			7,975,720			1,862,130			204,175
Occupancy (2)		88.0	%		86.4	%		93.4	%		100.0	%
Revenue	$	163,805		$	109,252		$	19,511		$	4,442		$	30,600
Operating expenses		(70,639	)		(53,393	)		(8,345	)		(1,481	)		(7,420	)
Net operating income		93,166			55,859			11,166			2,961			23,180
Straight-line rent		(5,622	)		(5,643	)		(74	)		95			—
Above/below-market lease amortization		(4,576	)		(4,576	)		—			—			—
Below-market ground lease amortization		1,958			1,958			—			—			—
Cash net operating income	$	84,926		$	47,598		$	11,092		$	3,056		$	23,180
Leasing activity
Total leases executed		79			65			14			—
Total square footage executed		254,360			203,721			50,639			—
Average rent psf - leases executed	$	64.67		$	68.72		$	41.90		$	—
Previously escalated rents psf	$	44.31		$	44.42		$	43.67		$	—
Percentage of new rent over previously escalated rents		46.0	%		54.7	%		-4.0	%		—
Leasing commission costs per square foot	$	12.33		$	14.24		$	4.90		$	—
Tenant improvement costs per square foot		47.15			51.25			31.55			—
Total LC and TI per square foot (3)	$	59.48		$	65.49		$	36.45		$	—

Total Portfolio	Office			Retail			Total
Total square footage executed		236,324			18,036			254,360
Average rent psf - leases executed	$	52.37		$	207.71		$	64.67
Previously escalated rents psf	$	40.70		$	91.08		$	44.31
Percentage of new rent over previously escalated rents		28.7	%		128.1	%		46.0	%
Manhattan Office Portfolio	Office			Retail			Total
Total square footage executed		185,685			18,036			203,721
Average rent psf - leases executed	$	55.22		$	207.71		$	68.72
Previously escalated rents psf	$	39.89		$	91.08		$	44.42
Percentage of new rent over previously escalated rents		38.4	%		128.1	%		54.7	%

Page 7

Fourth Quarter 2015

Property Summary

(unaudited and dollars in thousands, except per square foot amounts)

	Three Months Ended March 31, 2015
				Manhattan			Greater New York			Standalone
	Total			Office			Office			Retail
	Portfolio			Portfolio (1)			Portfolio			Portfolio			Observatory
Number of properties		20			9			5			6
Square feet		10,018,399			7,953,643			1,860,581			204,175
Occupancy (2)		87.6	%		86.2	%		92.0	%		100.0	%
Revenue	$	149,829		$	107,733		$	19,118		$	4,755		$	18,223
Operating expenses		(74,738	)		(58,224	)		(8,039	)		(1,498	)		(6,977	)
Net operating income		75,091			49,509			11,079			3,257			11,246
Straight-line rent		(4,102	)		(4,349	)		271			(24	)		—
Above/below-market lease amortization		(5,291	)		(5,291	)		—			—			—
Below-market ground lease amortization		1,958			1,958			—			—			—
Cash net operating income	$	67,656		$	41,827		$	11,350		$	3,233		$	11,246
Leasing activity
Total leases executed		60			51			9			—
Total square footage executed		418,092			372,028			46,064			—
Average rent psf - leases executed	$	88.38		$	93.92		$	40.44		$	—
Previously escalated rents psf	$	35.43		$	35.00		$	39.14		$	—
Percentage of new rent over previously escalated rents		149.5	%		168.3	%		3.3	%		—
Leasing commission costs per square foot	$	37.58		$	41.21		$	8.22		$	—
Tenant improvement costs per square foot		52.41			53.46			43.95			—
Total LC and TI per square foot (3)	$	89.99		$	94.67		$	52.17		$	—

Total Portfolio	Office			Retail			Total
Total square footage executed		367,761			50,331			418,092
Average rent psf - leases executed	$	52.64		$	347.32		$	88.38
Previously escalated rents psf	$	35.33		$	36.14		$	35.43
Percentage of new rent over previously escalated rents		49.0	%		861.0	%		149.5	%
Manhattan Office Portfolio	Office			Retail			Total
Total square footage executed		321,697			50,331			372,028
Average rent psf - leases executed	$	54.27		$	347.32		$	93.92
Previously escalated rents psf	$	34.82		$	36.14		$	35.00
Percentage of new rent over previously escalated rents		55.9	%		861.0	%		168.3	%

Page 8

Fourth Quarter 2015

Property Summary

(unaudited and dollars in thousands, except per square foot amounts)

	Three Months Ended December 31, 2014
				Manhattan			Greater New York			Standalone
	Total			Office			Office			Retail
	Portfolio			Portfolio (1)			Portfolio			Portfolio			Observatory
Number of properties		20			9			5			6
Square feet		10,014,264			7,948,743			1,861,346			204,175
Occupancy (2)		88.6	%		87.7	%		91.1	%		100.0	%
Revenue	$	165,041		$	113,789		$	18,497		$	4,588		$	28,167
Operating expenses		(75,655	)		(58,483	)		(7,591	)		(1,750	)		(7,831	)
Net operating income		89,386			55,306			10,906			2,838			20,336
Straight-line rent		(7,613	)		(7,538	)		(135	)		60			—
Above/below-market lease amortization		(5,613	)		(5,613	)		—			—			—
Below-market ground lease amortization		2,001			2,001			—			—			—
Cash net operating income	$	78,161		$	44,156		$	10,771		$	2,898		$	20,336
Leasing activity
Total leases executed		63			54			9			—
Total square footage executed		200,480			155,482			44,998			—
Average rent psf - leases executed	$	55.67		$	58.60		$	34.93		$	—
Previously escalated rents psf	$	44.12		$	45.23		$	36.30		$	—
Percentage of new rent over previously escalated rents		26.2	%		29.6	%		-3.8	%		—
Leasing commission costs per square foot	$	12.39		$	13.41		$	8.85		$	—
Tenant improvement costs per square foot		36.92			35.28			42.58			—
Total LC and TI per square foot (3)	$	49.31		$	48.69		$	51.43		$	—

Notes:

⁽¹⁾  Includes 518,792 rentable square feet of retail space in the Company’s nine Manhattan office properties.

⁽²⁾  Based on leases signed and commenced as of period end.

⁽³⁾  Presents all tenant improvement and leasing commission costs as if they were incurred in the period in which the lease was signed, which may be different than the period in which they were actually paid.

⁽⁴⁾  Excludes a standalone retail tenant that exercised a below-market renewal option contained within its lease for 48,377 square feet.

Page 9

Fourth Quarter 2015

Property Detail

(unaudited)

									Annualized
									Rent
Property Name	Location or Sub-Market	Rentable Square Feet (1)		Percent Occupied (2)			Annualized Rent (3)		per Occupied Square Foot (4)		Number of Leases (5)
Manhattan Office Properties - Office
The Empire State Building (6)	Penn Station -Times Sq. South		2,701,356		86.4	%	$	117,999,922	$	50.58		187
One Grand Central Place	Grand Central		1,192,231		83.4	%		51,967,318		52.29		239
1400 Broadway (8)	Penn Station -Times Sq. South		902,810		87.8	%		34,309,269		43.27		51
111 West 33th Street (9)	Penn Station -Times Sq. South		623,728		71.4	%		21,138,144		47.47		24
250 West 57th Street	Columbus Circle - West Side		481,487		74.6	%		18,584,120		51.76		121
501 Seventh Avenue	Penn Station -Times Sq. South		459,051		94.8	%		18,383,050		42.24		34
1359 Broadway	Penn Station -Times Sq. South		453,924		87.8	%		18,855,826		47.29		32
1350 Broadway (10)	Penn Station -Times Sq. South		372,901		81.4	%		15,195,009		50.04		57
1333 Broadway	Penn Station -Times Sq. South		292,524		100.0	%		13,692,608		46.81		10
Manhattan Office Properties - Office			7,480,012		84.9	%		310,125,266		48.81		755
Manhattan Office Properties - Retail
The Empire State Building (7)	Penn Station -Times Sq. South		132,988		94.2	%		17,383,058		138.72		18
One Grand Central Place	Grand Central		67,846		95.2	%		6,923,722		107.32		13
1400 Broadway (8)	Penn Station -Times Sq. South		16,595		100.0	%		2,030,502		122.36		10
112 West 34th Street (9)	Penn Station -Times Sq. South		93,348		96.5	%		3,649,721		40.51		2
250 West 57th Street	Columbus Circle - West Side		49,229		89.6	%		6,507,835		147.51		6
501 Seventh Avenue	Penn Station -Times Sq. South		34,536		87.1	%		1,740,948		57.91		8
1359 Broadway	Penn Station -Times Sq. South		27,243		42.1	%		1,115,963		97.25		4
1350 Broadway (10)	Penn Station -Times Sq. South		31,774		100.0	%		6,672,846		210.01		6
1333 Broadway	Penn Station -Times Sq. South		65,233		97.2	%		7,512,298		118.49		3
Manhattan Office Properties - Retail			518,792		92.0	%		53,536,893		112.16		70
Sub-Total/Weighted Average Manhattan Office Properties - Office and Retail			7,998,804		85.4	%		363,662,159		53.23		825
Greater New York Metropolitan Area Office Properties
First Stamford Place (11)	Stamford, CT		794,571		95.5	%		31,983,458		42.17		55
Metro Center	Stamford, CT		282,499		96.9	%		15,434,472		56.40		31
383 Main Street	Norwalk, CT		259,914		96.6	%		8,203,469		32.68		24
500 Mamaroneck Avenue	Harrison, NY		293,996		91.6	%		7,902,818		29.33		32
10 Bank Street	White Plains, NY		229,516		85.0	%		7,003,357		35.89		29
Sub-Total/Weighted Average Greater New York Metropolitan Area Office Properties			1,860,496		93.9	%		70,527,574		40.35		171
Standalone Retail Properties
10 Union Square	Union Square		58,005		100.0	%		6,406,260		110.44		14
1542 Third Avenue	Upper East Side		56,250		100.0	%		3,421,409		60.83		4
1010 Third Avenue	Upper East Side		44,662		100.0	%		3,469,238		77.68		2
77 West 55th Street	Midtown		24,102		100.0	%		3,041,321		126.19		3
69-97 Main Street	Westport, CT		17,103		100.0	%		2,086,842		122.02		5
103-107 Main Street	Westport, CT		4,330		100.0	%		697,353		161.05		1
Sub-Total/Weighted Average Standalone Retail Properties			204,452		100.0	%		19,122,423		93.53		29
Portfolio Total			10,063,752		87.3	%	$	453,312,156	$	51.61		1,025
Total/Weighted Average Office Properties			9,340,508		86.7	%	$	380,652,840	$	46.98		926
Total/Weighted Average Retail Properties			723,244		94.3	%		72,659,316		106.57		99
Portfolio Total			10,063,752		87.3	%	$	453,312,156	$	51.61		1,025

Notes:

(1) Excludes (i) 184,296 square feet of space across the Company’s portfolio attributable to building management use and tenant amenities and (ii) 69,789 square feet of space attributable to the Company’s observatory.

(2) Based on leases signed and commenced as of December 31, 2015.

(3) Represents annualized base rent and current reimbursement for operating expenses and real estate taxes.

(4) Represents annualized rent under leases commenced as of December 31, 2015 divided by occupied square feet.

(5) Represents the number of leases at each property or on a portfolio basis. If a tenant has more than one lease, whether or not at the same property, but with different expirations, the number of leases is calculated equal to the number of leases with different expirations.

(6) Includes 86,902 rentable square feet of space leased by the Company’s broadcasting tenants.

(7) Includes 5,300 rentable square feet of space leased by WDGF North America, a licensee of the Company’s observatory.

(8) Denotes a ground leasehold interest in the property with a remaining term, including unilateral extension rights available to the Company, of approximately 48 years (expiring December 31, 2063).

(9) Denotes a ground leasehold interest in the property with a remaining term, including unilateral extension rights available to the Company, of approximately 62 years (expiring May 31, 2077).

(10) Denotes a ground leasehold interest in the property with a remaining term, including unilateral extension rights available to the Company, of approximately 35 years (expiring July 31, 2050).

(11) First Stamford Place consists of three buildings.

Page 10

Fourth Quarter 2015

Tenant Lease Expirations

(unaudited)

Total Lease Expirations	Number of Leases Expiring (1)		Rentable Square Feet Expiring (2)		Percent of Portfolio Rentable Square Feet Expiring			Annualized Rent (3)		Percent of Annualized Rent			Annualized Rent Per Rentable Square Foot
Available		—		1,101,925		10.9	%	$	—		0.0	%	$	—
Signed leases not commenced		14		178,345		1.8	%		—		0.0	%		—
2016		174		770,320		7.7	%		36,920,436		8.1	%		47.93
2017		166		731,967		7.3	%		36,627,890		8.1	%		50.04
2018		164		828,370		8.2	%		41,210,712		9.1	%		49.75
2019		115		709,610		7.1	%		33,838,514		7.5	%		47.69
2020		130		953,483		9.5	%		53,107,825		11.7	%		55.70
2021		68		571,786		5.7	%		30,499,865		6.7	%		53.34
2022		45		460,780		4.6	%		26,797,147		5.9	%		58.16
2023		45		578,889		5.8	%		31,143,147		6.9	%		53.80
2024		33		530,627		5.3	%		28,542,759		6.3	%		53.79
2025		36		290,529		2.9	%		17,511,464		3.9	%		60.27
Thereafter		49		2,357,121		23.4	%		117,112,397		25.8	%		49.68
Total		1,039		10,063,752		100.0	%	$	453,312,156		100.0	%	$	51.61

Notes:

(1) If a lease has two different expiration dates, it is considered to be two leases (for the purpose of lease count and square footage).

(2) Excludes (i) 184,296 rentable square feet of space across the Company portfolio attributable to building management use and tenant amenities and (ii) 69,789 square feet of space attributable to the Company’s observatory.

(3) Represents annualized base rent and current reimbursement for operating expenses and real estate taxes.

Page 11

Fourth Quarter 2015

Tenant Lease Expirations

(unaudited)

Manhattan Office Properties (1)	Number of Leases Expiring (2)		Rentable Square Feet Expiring (3)		Percent of Portfolio Rentable Square Feet Expiring			Annualized Rent (4)		Percent of Annualized Rent			Annualized Rent Per Rentable Square Foot
Available		—		954,606		12.8	%	$	—		0.0	%	$	—
Signed leases not commenced		11		171,458		2.3	%		—		0.0	%		—
2016		143		558,939		7.5	%		25,093,686		8.1	%		44.90
2017		139		530,919		7.1	%		26,151,539		8.4	%		49.26
2018		124		551,348		7.4	%		29,141,526		9.4	%		52.86
2019		88		436,274		5.8	%		20,974,605		6.8	%		48.08
2020		92		645,702		8.6	%		32,200,260		10.4	%		49.87
2021		40		356,980		4.8	%		17,559,087		5.7	%		49.19
2022		28		212,213		2.8	%		11,796,973		3.8	%		55.59
2023		32		412,010		5.5	%		20,379,247		6.6	%		49.46
2024		16		348,508		4.7	%		15,988,649		5.2	%		45.88
2025		19		182,520		2.4	%		10,152,371		3.3	%		55.62
Thereafter		34		2,118,535		28.3	%		100,687,323		32.5	%		46.10
Total Manhattan office properties		766		7,480,012		100.0	%		310,125,266		100.0	%		48.81
Greater New York Metropolitan Area Office Properties
Available		—		108,226		5.8	%		—		0.0	%		—
Signed leases not commenced		1		4,532		0.2	%		—		0.0	%		—
2016		16		65,528		3.5	%		2,474,265		3.5	%		37.76
2017		21		154,599		8.3	%		6,251,760		8.9	%		40.44
2018		34		256,393		13.8	%		9,693,655		13.7	%		37.81
2019		21		246,987		13.3	%		9,762,456		13.8	%		39.53
2020		27		245,638		13.2	%		10,191,618		14.5	%		41.49
2021		22		185,304		10.0	%		8,268,384		11.7	%		44.62
2022		8		184,175		9.9	%		7,153,931		10.1	%		38.84
2023		6		118,242		6.4	%		5,317,361		7.5	%		44.97
2024		3		149,541		8.0	%		6,661,272		9.4	%		44.54
2025		10		79,273		4.3	%		2,779,777		3.9	%		35.07
Thereafter		3		62,058		3.3	%		1,973,095		2.8	%		41.16
Total greater New York metropolitan area office properties		172		1,860,496		100.0	%		70,527,574		100.0	%		40.35
Retail Properties
Available		—		39,093		5.4	%		—		0.0	%		—
Signed leases not commenced		2		2,355		0.3	%		—		0.0	%		—
2016		15		145,853		20.2	%		9,352,485		12.9	%		64.12
2017		6		46,449		6.4	%		4,224,591		5.8	%		90.95
2018		6		20,629		2.9	%		2,375,531		3.3	%		115.15
2019		6		26,349		3.6	%		3,101,453		4.3	%		117.71
2020		11		62,143		8.6	%		10,715,947		14.7	%		172.44
2021		6		29,502		4.1	%		4,672,394		6.4	%		158.38
2022		9		64,392		8.9	%		7,846,243		10.8	%		121.85
2023		7		48,637		6.7	%		5,446,539		7.5	%		111.98
2024		14		32,578		4.5	%		5,892,838		8.1	%		180.88
2025		7		28,736		4.0	%		4,579,316		6.3	%		159.36
Thereafter		12		176,528		24.4	%		14,451,979		19.9	%		107.85
Total retail properties		101		723,244		100.0	%		72,659,316		100.0	%		106.57
Total portfolio lease expirations		1,039		10,063,752		100.0	%	$	453,312,156		100.0	%	$	51.61

Notes:

(1) Excludes (i) retail space in the Company’s Manhattan office properties and (ii) the Empire State Building broadcasting licenses and observatory operations.

(2) If a lease has two different expiration dates, it is considered to be two leases (for the purpose of lease count and square footage).

(3) Excludes (i) 184,296 rentable square feet of space across the Company portfolio attributable to building management use and tenant amenities and (ii) 69,789 square feet of space attributable to the Company’s observatory.

(4) Represents annualized base rent and current reimbursement for operating expenses and real estate taxes.

Page 12

Fourth Quarter 2015

Tenant Lease Expirations

(unaudited)

Empire State Building Office (1)	Number of Leases Expiring (2)		Rentable Square Feet Expiring (3)		Percent of Portfolio Rentable Square Feet Expiring			Annualized Rent (4) (5)		Percent of Annualized Rent			Annualized Rent Per Rentable Square Foot
Available		—		254,569		9.4	%	$	—		0.0	%	$	—
Signed leases not commenced		5		114,036		4.2	%		—		0.0	%		—
2016		26		120,355		4.5	%		4,573,957		3.9	%		38.00
2017		26		94,385		3.5	%		5,379,843		4.6	%		57.00
2018		24		87,832		3.3	%		4,962,379		4.2	%		56.50
2019		15		61,464		2.3	%		3,042,576		2.6	%		49.50
2020		39		309,732		11.5	%		16,592,730		14.1	%		53.57
2021		11		83,520		3.1	%		4,180,101		3.5	%		50.05
2022		11		42,764		1.6	%		2,908,420		2.5	%		68.01
2023		9		55,370		2.0	%		3,209,882		2.7	%		57.97
2024		7		152,468		5.6	%		7,384,952		6.3	%		48.44
2025		5		68,575		2.5	%		3,716,883		3.1	%		54.20
Thereafter		14		1,256,286		46.5	%		62,048,199		52.6	%		49.39
Total Empire State Building office		192		2,701,356		100.0	%	$	117,999,922		100.0	%	$	50.58

Empire State Building Broadcasting Licenses and Leases	Annualized Base Rent (6)		Annualized Expense Reimbursements		Annualized Rent (4)		Percent of Annualized Rent
2016	$	765,002	$	787,459	$	1,552,461		5.3	%
2017		5,299,080		3,403,012		8,702,092		29.6	%
2018		7,027,817		3,542,011		10,569,828		35.9	%
2019		212,240		66,333		278,573		0.9	%
2020		2,275,270		577,553		2,852,823		9.7	%
2021		2,062,456		292,303		2,354,759		8.0	%
2022		2,007,111		290,058		2,297,169		7.8	%
2023		609,356		102,680		712,036		2.4	%
2024		43,260		48,418		91,678		0.3	%
Total Empire State Building broadcasting licenses and leases	$	20,301,592	$	9,109,827	$	29,411,419		100.0	%

Notes:

(1) Excludes retail space, broadcasting licenses and observatory operations

(2) If a lease has two different expiration dates, it is considered to be two leases (for the purpose of lease count and square footage).

(3) Excludes 25,937 rentable square feet of space attributable to building management use.

(4) Represents annualized base rent and current reimbursement for operating expenses and real estate taxes.

(5) Includes approximately $4.8 million of annualized rent related to physical space occupied by broadcasting tenants for their broadcasting operations. Does not include license fees charged to broadcasting tenants.

(6) Represents license fees for the use of the Empire State Building mast and base rent for physical space occupied by broadcasting tenants.

Page 13

Fourth Quarter 2015

20 Largest Tenants and Portfolio Tenant Diversification by Industry

(unaudited)

20 Largest Tenants	Number of Leases		Number of Properties		Lease Expiration (1)	Weighted Average Remaining Lease Term(2)	Total Occupied Square Feet (3)		Percent of Portfolio Rentable Square Feet (4)			Annualized Rent (5)		Percent of Portfolio Annualized Rent (6)
1. Global Brands Group		3		2	Oct. 2023-Oct. 2028	12.1 years		656,224		6.5	%	$	28,902,221		6.4	%
2. Coty		1		1	Jan. 2030	14.1 years		311,242		3.1	%		16,019,109		3.5	%
3. LinkedIn		1		1	Feb. 2026	10.2 years		184,487		1.8	%		9,414,947		2.1	%
4. PVH Corp.		1		1	Oct. 2028	12.8 years		211,311		2.1	%		8,811,333		1.9	%
5. Thomson Reuters		4		2	Apr. 2018-Apr. 2020	3.6 years		147,208		1.5	%		7,719,003		1.7	%
6. Li & Fung		3		1	Oct. 2021-Oct. 2027	8.2 years		149,436		1.5	%		6,713,176		1.4	%
7. Federal Deposit Insurance Corporation		1		1	Feb. 2020	4.1 years		121,879		1.2	%		6,497,447		1.4	%
8. Urban Outfitters		1		1	Sept. 2029	13.8 years		56,730		0.6	%		6,392,674		1.4	%
9. Duane Reade		3		3	Feb. 2021-Sept. 2027	8.8 years		47,541		0.5	%		6,148,912		1.4	%
10. Legg Mason		1		1	Sept. 2024	8.8 years		138,868		1.4	%		6,129,367		1.4	%
11. Footlocker		2		1	Apr. 2016	0.3 years		170,187		1.7	%		5,527,692		1.2	%
12. Bank of America		3		3	Apr. 2016-Feb. 2018	0.8 years		29,671		0.3	%		5,509,572		1.2	%
13. WDGF North America		1		1	May 2020	4.4 years		5,300		0.1	%		4,951,062		1.1	%
14. Kohl’s		1		1	May 2029	13.4 years		111,834		1.1	%		4,659,589		1.0	%
15. HNTB Corporation		1		1	Feb. 2026	10.1 years		78,361		0.8	%		4,466,577		1.0	%
16. On Deck Capital		3		1	Jan. 2016-Oct. 2026	9.1 years		86,123		0.9	%		4,391,572		1.0	%
17. Aeropostale		2		1	Nov. 2016-Nov. 2020	5.6 years		88,760		0.9	%		4,305,871		0.9	%
18. Shutterstock		1		1	Sept. 2024	8.8 years		89,433		0.9	%		4,079,449		0.9	%
19. Odyssey Reinsurance		1		1	Sept. 2022	6.8 years		101,619		1.0	%		3,857,081		0.9	%
20. The Interpublic Group of Companies		1		1	Aug. 2024	8.7 years		86,561		0.9	%		3,851,035		0.9	%
Total		35						2,872,775		28.8	%	$	148,347,689		32.7	%

Notes:

(1) Expiration dates are per lease and do not assume exercise of renewal or extension options. None of these leases contain early termination options. For tenants with more than two leases, the lease expiration is shown as a range.

(2) Represents the weighted average lease term, based on annualized rent.

(3) Based on leases signed and commenced as of December 31, 2015.

(4) Represents the percentage of rentable square feet of the Company’s office and retail portfolios in the aggregate.

(5) Represents annualized base rent and current reimbursement for operating expenses and real estate taxes.

(6) Represents the percentage of annualized rent of the Company’s office and retail portfolios in the aggregate.

Portfolio Tenant Diversification by Industry (based on annualized rent)

Page 14

Fourth Quarter 2015

Capital Expenditures and Redevelopment Program

(unaudited)

	Three Months Ended
Capital expenditures	December 31, 2015		September 30, 2015		June 30, 2015		March 31, 2015		December 31, 2014
Tenant improvements - first generation	$	21,351	$	29,552	$	13,536	$	27,662	$	29,620
Tenant improvements - second generation		2,507		1,792		2,015		1,681		1,020
Leasing commissions - first generation		3,515		4,115		4,613		15,813		2,481
Leasing commissions - second generation		462		60		513		372		386
Building improvements - first generation		16,547		12,554		13,833		8,420		13,678
Building improvements - second generation		1,546		650		928		333		2,391
Total	$	45,928	$	48,723	$	35,438	$	54,281	$	49,576

Building redevelopment program components

• Upgrading common areas: lobbies, elevators, corridors and bathrooms

• Installing energy efficient building systems

• Improving roofs, windows and facades

Building redevelopment program costs ^(1) (2) 

• Spent to date: $645 million

• To be invested: $30 to $50 million in 2016

Tenant space redevelopment by square feet ^(1) (2) 

• Future redevelopment (Empire State Building) - 470,000 square feet

• Future redevelopment (other Manhattan properties) - 1,290,000 square feet

• Redevelopment completed - 6,230,000 square feet

Inventory of vacant space ⁽²⁾

• Developed - 720,000 square feet, 77%

• Undeveloped - 220,000 square feet, 23%

Inventory of undeveloped space ⁽²⁾ 

• Vacant - 220,000 square feet, 13%

• Expires in 2016 - 500,000 square feet, 28%

• Expires in 2017 and thereafter -1,040,000 square feet, 59%

Notes:

⁽¹⁾  These estimates are based on the Company’s current budgets (which do not include base building work in tenant spaces, tenant improvements and leasing commission costs) and are subject to change.

⁽²⁾  Redevelopment program is for the Manhattan office assets only. Square footage based on market measurement. Developed space includes space that has been demolished and completed asbestos abatement and available for lease up or ready to be prebuilt. Permanent building use spaces, amenity spaces and broadcasting spaces are excluded.

Page 15

Fourth Quarter 2015

Observatory Summary

(unaudited and in thousands)

	Three Months Ended
Observatory NOI	December 31, 2015		September 30, 2015		June 30, 2015		March 31, 2015			December 31, 2014
Observatory revenue	$	27,647	$	35,702	$	30,600	$	18,223		$	28,167
Observatory expenses		8,162		7,284		7,420		6,977			7,831
NOI		19,485		28,418		23,180		11,246			20,336
Intercompany rent expense (1)		16,853		20,828		18,910		11,664			17,874
NOI after intercompany rent	$	2,632	$	7,590	$	4,270	$	(418	)	$	2,462

Note:

⁽¹⁾  The observatory pays a market-based rent payment comprised of fixed and percentage rent to the Empire State Building. Intercompany rent is eliminated upon consolidation.

Annual Observatory Revenues 2011 to 2015

Page 16

Fourth Quarter 2015

Condensed Consolidated Balance Sheets

(unaudited and dollars in thousands)

	December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015			December 31, 2014
Assets
Commercial real estate properties, at cost:
Land	$	201,196		$	201,196		$	201,196		$	201,196		$	201,196
Development costs		7,498			7,479			7,388			7,332			6,986
Building and improvements		2,067,636			2,036,187			1,996,318			1,967,260			1,931,681
		2,276,330			2,244,862			2,204,902			2,175,788			2,139,863
Less: accumulated depreciation		(465,584	)		(445,549	)		(423,279	)		(399,851	)		(377,552	)
Commercial real estate properties, net		1,810,746			1,799,313			1,781,623			1,775,937			1,762,311
Cash and cash equivalents		46,685			46,388			34,221			36,463			45,732
Restricted cash		65,880			64,899			69,709			61,007			60,273
Tenant and other receivables, net		18,782			32,406			16,431			12,759			23,745
Deferred rent receivables, net		122,048			116,208			111,897			106,226			102,104
Prepaid expenses and other assets		50,460			33,759			47,857			30,715			48,504
Deferred costs, net		310,679			324,388			340,351			354,586			357,462
Acquired below-market ground leases, net		383,891			385,849			387,807			389,765			391,887
Goodwill		491,479			491,479			491,479			491,479			491,479
Total assets	$	3,300,650		$	3,294,689		$	3,281,375		$	3,258,937		$	3,283,497
Liabilities and Equity
Mortgage notes payable	$	747,661		$	751,904		$	756,081		$	850,765		$	898,998
Senior unsecured notes		587,018			586,167			585,325			584,529			234,980
Unsecured term loan facility		262,545			262,457			—			—			—
Unsecured revolving credit facility		35,192			14,802			279,412			159,022			—
Term loan and credit facility		—			—			—			—			464,676
Accounts payable and accrued expenses		111,099			106,699			101,674			101,797			96,563
Acquired below-market leases, net		104,171			112,312			121,286			129,736			138,859
Deferred revenue and other liabilities		31,388			38,066			18,713			20,994			27,876
Tenants’ security deposits		48,890			49,672			46,338			44,388			40,448
Total liabilities		1,927,964			1,922,079			1,908,829			1,891,231			1,902,400
Total equity		1,372,686			1,372,610			1,372,546			1,367,706			1,381,097
Total liabilities and equity	$	3,300,650		$	3,294,689		$	3,281,375		$	3,258,937		$	3,283,497

Page 17

Fourth Quarter 2015

Condensed Consolidated Statements of Income

(unaudited and in thousands, except per share amounts)

	Three Months Ended
	December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015			December 31, 2014
Revenues
Rental revenue	$	113,957		$	110,903		$	112,866		$	110,058		$	112,259
Tenant expense reimbursement		19,638			23,096			18,582			18,200			18,160
Observatory revenue		27,647			35,702			30,600			18,223			28,167
Construction revenue		—			—			374			1,607			4,918
Third party management and other fees		475			618			594			446			451
Other revenue and fees		3,483			5,460			1,757			3,348			6,456
Total revenues		165,200			175,779			164,773			151,882			170,411
Operating expenses
Property operating expenses		38,918			41,664			37,935			42,452			41,748
Ground rent expenses		2,332			2,331			2,332			2,331			2,375
Marketing, general, and administrative expenses		9,678			10,182			9,113			9,100			9,251
Observatory expenses		8,162			7,284			7,420			6,977			7,831
Construction expenses		—			—			353			2,869			5,423
Real estate taxes		23,622			23,613			22,952			22,978			23,702
Acquisition expenses		—			193			—			—			—
Depreciation and amortization		45,258			45,169			39,629			41,418			48,799
Total operating expenses		127,970			130,436			119,734			128,125			139,129
Total operating income		37,230			45,343			45,039			23,757			31,282
Other income (expense)
Interest expense		(17,194	)		(16,680	)		(17,571	)		(16,047	)		(19,816	)
Income before income taxes		20,036			28,663			27,468			7,710			11,466
Income tax (expense) benefit		(666	)		(2,578	)		(883	)		178			(502	)
Net income		19,370			26,085			26,585			7,888			10,964
Perpetual preferred unit distributions		(234	)		(234	)		(234	)		(234	)		(235	)
Net income attributable to non-controlling interests		(10,884	)		(14,631	)		(15,231	)		(4,516	)		(6,587	)
Net income attributable to Empire State Realty Trust, Inc.	$	8,252		$	11,220		$	11,120		$	3,138		$	4,142
Weighted average common shares outstanding
Basic		118,706			115,900			112,852			109,400			103,022
Diluted		266,048			265,873			265,867			265,810			265,779
Net income per share attributable to Empire State Realty Trust, Inc.
Basic and Diluted	$	0.07		$	0.10		$	0.10		$	0.03		$	0.04
Dividends per share	$	0.085		$	0.085		$	0.085		$	0.085		$	0.085

Page 18

Fourth Quarter 2015

Funds from Operations (“FFO”), Modified Funds From Operations (“Modified FFO”), Core Funds from

Operations (“Core FFO”), Core Funds Available for Distribution (“Core FAD”) and EBITDA

(unaudited and in thousands, except per share amounts)

	Three Months Ended
Reconciliation of Net Income to FFO, Modified FFO and Core FFO	December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015			December 31, 2014
Net Income	$	19,370		$	26,085		$	26,585		$	7,888		$	10,964
Preferred unit distributions		(234	)		(234	)		(234	)		(234	)		(235	)
Real estate depreciation and amortization		45,085			45,072			39,542			41,233			48,711
FFO attributable to common stockholders and non-controlled interests		64,221			70,923			65,893			48,887			59,440
Amortization of below-market ground lease		1,958			1,957			1,958			1,958			2,001
Modified FFO attributable to common stockholders and non-controlled interests		66,179			72,880			67,851			50,845			61,441
Acquisition break-up fee		—			(2,500	)		—			—			—
Acquisition expenses		—			193			—			—			—
Deferred financing costs write-off and prepayment penalty		—			—			404			1,345			3,771
Construction severance expenses, net of taxes		—			—			—			480			—
Core FFO attributable to common stockholders and non-controlled interests	$	66,179		$	70,573		$	68,255		$	52,670		$	65,212
Total weighted average shares and Operating Partnership Units
Basic and Diluted		266,048			265,873			265,867			265,810			265,779
FFO attributable to common stockholders and non-controlled interests per share
Basic and Diluted	$	0.24		$	0.27		$	0.25		$	0.18		$	0.22
Modified FFO attributable to common stockholders and non-controlled interests per share
Basic and Diluted	$	0.25		$	0.27		$	0.26		$	0.19		$	0.23
Core FFO attributable to common stockholders and non-controlled interests per share
Basic and Diluted	$	0.25		$	0.27		$	0.26		$	0.20		$	0.25
Reconciliation of Core FFO to Core FAD
Core FFO	$	66,179		$	70,573		$	68,255		$	52,670		$	65,212
Add:
Amortization of deferred financing costs		1,141			1,086			1,054			1,076			1,541
Non-real estate depreciation and amortization		173			97			87			185			88
Amortization of non-cash compensation expense		1,225			1,334			1,230			1,694			813
Amortization of debt discount		668			668			668			668			668
Deduct:
Straight-line rental revenues		(5,892	)		(5,441	)		(5,622	)		(4,102	)		(7,613	)
Amortization of debt premiums		(1,736	)		(1,737	)		(1,737	)		(1,869	)		(1,753	)
Above/below-market rent revenue		(4,691	)		(4,795	)		(4,576	)		(5,291	)		(5,613	)
FF&E purchases		—			(86	)		—			—			—
Tenant improvements - second generation		(2,507	)		(1,792	)		(2,015	)		(1,681	)		(1,020	)
Building improvements - second generation		(1,546	)		(650	)		(928	)		(333	)		(2,391	)
Leasing commissions - second generation		(462	)		(60	)		(513	)		(372	)		(386	)
Core FAD	$	52,552		$	59,197		$	55,903		$	42,645		$	49,546
Core FAD attributable to common stockholders and non-controlled interests per share
Basic and Diluted	$	0.20		$	0.22		$	0.21		$	0.16		$	0.19
Reconciliation of Net Income to EBITDA
Net income	$	19,370		$	26,085		$	26,585		$	7,888		$	10,964
Perpetual preferred unit distributions		(234	)		(234	)		(234	)		(234	)		(235	)
Interest expense		17,194			16,680			17,571			16,047			19,816
Income tax expense (benefit)		666			2,578			883			(178	)		502
Depreciation and amortization		45,258			45,169			39,629			41,418			48,799
Acquisition expenses		—			193			—			—			—
EBITDA	$	82,254		$	90,471		$	84,434		$	64,941		$	79,846

Page 19

Fourth Quarter 2015

Net Operating Income (“NOI”)

(unaudited and dollars in thousands)

	Three Months Ended
Reconciliation of Net Income to NOI and Cash NOI	December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015			December 31, 2014
Net income	$	19,370		$	26,085		$	26,585		$	7,888		$	10,964
Add:
Marketing, general and administrative expenses		9,678			10,182			9,113			9,100			9,251
Depreciation and amortization		45,258			45,169			39,629			41,418			48,799
Interest expense		17,194			16,680			17,571			16,047			19,816
Construction expenses		—			—			353			2,869			5,423
Acquisition expenses		—			193			—			—			—
Income tax expense (benefit)		666			2,578			883			(178	)		502
Less:
Construction revenue		—			—			(374	)		(1,607	)		(4,918	)
Third-party management and other fees		(475	)		(618	)		(594	)		(446	)		(451	)
Acquisition break-up fee		—			(2,500	)		—			—			—
Net operating income		91,691			97,769			93,166			75,091			89,386
Straight-line rent		(5,892	)		(5,441	)		(5,622	)		(4,102	)		(7,613	)
Above/below-market lease amortization		(4,691	)		(4,795	)		(4,576	)		(5,291	)		(5,613	)
Below-market ground lease amortization		1,958			1,957			1,958			1,958			2,001
Cash net operating income		83,066			89,490			84,926			67,656			78,161
Less: Observatory net operating income		(19,485	)		(28,418	)		(23,180	)		(11,246	)		(20,336	)
Total portfolio (excluding observatory) cash net operating income	$	63,581		$	61,072		$	61,746		$	56,410		$	57,825

Page 20

Fourth Quarter 2015

Debt Summary

(unaudited and dollars in thousands)

	December 31, 2015									September 30, 2015
				Weighted Average									Weighted Average
				Interest			Maturity						Interest			Maturity
Debt Summary	Balance			Rate			(Years)			Balance			Rate			(Years)
Fixed rate mortgage debt	$	735,145			5.53	%		2.7		$	738,158			5.53	%		3.0
Senior unsecured notes		600,000			3.47	%		8.4			600,000			3.47	%		8.6
Total fixed rate debt		1,335,145			4.61	%		5.3			1,338,158			4.61	%		5.5
Unsecured revolving credit facility		40,000			1.58	%		3.1			20,000			1.34	%		3.3
Unsecured term loan facility (1)		265,000			2.03	%		6.7			265,000			1.79	%		6.9
Total variable rate debt		305,000			1.97	%		6.2			285,000			1.76	%		6.7
Total debt		1,640,145			4.12	%		5.4			1,623,158			4.11	%		5.7
Premium/discount		5,181						18.60	%		6,250
Deferred financing costs, net		(12,910	)								(14,078	)
Total	$	1,632,416								$	1,615,330

Notes:

⁽¹⁾  Beginning August 2017, LIBOR is fixed at 2.1485% under a variable to fixed interest rate swap agreement.

							Available
			Outstanding at				Capacity at
			December 31,		Letters		December 31,
Available Capacity	Facility		2015		of Credit		2015
Unsecured revolving credit facility (1)	$	800,000	$	40,000	$	—	$	760,000

				Current			In
Covenant Summary	Required			Quarter			Compliance
Maximum Total Leverage(2)		< 60	%		29.8	%	Yes
Maximum Secured Debt		< 40	%		13.6	%	Yes
Minimum Fixed Charge Coverage		> 1.50	x		4.0	x	Yes
Minimum Unencumbered Interest Coverage		> 1.75	x		7.3	x	Yes
Maximum Unsecured Leverage		< 60	%		25.0	%	Yes
Maximum Secured Recourse Indebtedness		< 10	%		0	%	Yes
Minimum Tangible Net Worth	$	745,356		$	969,060		Yes

Notes:

⁽¹⁾  The unsecured revolving credit facility has an accordion feature allowing for an increase in maximum aggregate principal balance to $1.25 billion under certain circumstances. This facility matures in January 2019 with two additional six-month extension options.

⁽²⁾  Represents the ratio of total indebtedness to total asset value as defined and determined in accordance with the credit facility agreement.

Page 21

Fourth Quarter 2015

Debt Detail

(unaudited and dollars in thousands)

	Stated			Current
	Interest			Interest			Principal			Maturity
	Rate (%)			Rate (%)			Balance			Date	Amortization
Fixed rate mortgage debt:
10 Union Square		6.00	%		6.00	%	$	20,289		5/1/2017	30 years
10 Bank Street		5.72	%		5.72	%		32,214		6/1/2017	30 years
1542 Third Avenue		5.90	%		5.90	%		18,222		6/1/2017	30 years
First Stamford Place		5.65	%		5.65	%		238,765		7/5/2017	30 years
383 Main Avenue, Norwalk, CT		5.59	%		5.59	%		29,269		7/5/2017	30 years
1010 Third Avenue and 77 West 55th Street		5.69	%		5.69	%		27,064		7/5/2017	30 years
1333 Broadway		6.32	%		6.32	%		68,646		1/5/2018	30 years
1400 Broadway (first lien mortgage loan)		6.12	%		6.12	%		68,732		2/5/2018	30 years
1400 Broadway (second lien mortgage loan)		3.35	%		3.35	%		9,600		2/5/2018	30 years
112 West 34th Street (first lien mortgage loan)		6.01	%		6.01	%		76,406		4/5/2018	30 years
112 West 34th Street (second lien mortgage loan)		6.56	%		6.56	%		9,640		4/5/2018	30 years
1350 Broadway		5.87	%		5.87	%		38,348		4/5/2018	30 years
Metro Center		3.59	%		3.59	%		97,950		11/5/2024	30 years
Total mortgage debt								735,145
Unsecured revolving credit facility		LIBOR plus 1.15	%		1.58	%		40,000		1/23/2019	Interest only
Exchangeable senior unsecured notes		2.63	%		2.63	%		250,000		8/15/2019	Interest only
Unsecured term loan facility		LIBOR plus 1.60	%		2.03	%		265,000		8/24/2022	Interest only
Senior unsecured notes (Series A)		3.93	%		3.93	%		100,000		3/27/2025	Interest only
Senior unsecured notes (Series B)		4.09	%		4.09	%		125,000		3/27/2027	Interest only
Senior unsecured notes (Series C)		4.18	%		4.18	%		125,000		3/27/2030	Interest only
Total / weighted average debt					4.12	%		1,640,145
Premium/discounts								5,181
Deferred financing costs, net								(12,910	)
Total							$	1,632,416

Page 22

Fourth Quarter 2015

Debt Maturities and Ground Lease Commitments

(unaudited and dollars in thousands)

Year	Amortization		Maturities (1)		Total			Percentage of Total Debt			Weighted Average Interest Rate of Maturing Debt
2016	$	12,387	$	—	$	12,387			0.8	%		n/a
2017		10,070		355,761		365,831			22.3	%		5.69	%
2018		2,880		262,210		265,090			16.2	%		6.02	%
2019		2,188		290,000		292,188			17.8	%		2.48	%
2020		2,268		—		2,268			0.1	%		n/a
Thereafter		9,706		692,675		702,381			42.8	%		3.25	%
Total debt	$	39,499	$	1,600,646		1,640,145			100.0	%		4.12	%
Premium/discount						5,181
Deferred financing costs, net						(12,910	)
Total					$	1,632,416

Note:

(1) Assumes no extension options are exercised.

Debt Maturity Profile

Ground Lease Commitments

Year	1350 Broadway		1400 Broadway		112 West 34th Street		Total
2016		108		675		735		1,518
2017		108		675		735		1,518
2018		108		675		735		1,518
2019		108		675		735		1,518
2020		108		675		735		1,518
Thereafter		2,439		12,825		41,466		56,730
	$	2,979	$	16,200	$	45,141	$	64,320

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Fourth Quarter 2015

Supplemental Definitions

Funds From Operations (“FFO”)

We compute FFO in accordance with the “White Paper” on FFO published by the National Association of Real Estate Investment Trusts, or NAREIT, which defines FFO as net income (loss) (determined in accordance with GAAP), excluding impairment writedowns of investments in depreciable real estate and investments in in-substance real estate investments, gains or losses from debt restructurings and sales of depreciable operating properties, plus real estate-related depreciation and amortization (excluding amortization of deferred financing costs), less distributions to non-controlling interests and gains/losses from discontinued operations and after adjustments for unconsolidated partnerships and joint ventures. FFO is a widely recognized non-GAAP financial measure for REITs that we believe, when considered with financial statements determined in accordance with GAAP, is useful to investors in understanding financial performance and providing a relevant basis for comparison among REITs. In addition, FFO is useful to investors as it captures features particular to real estate performance by recognizing that real estate has generally appreciated over time or maintains residual value to a much greater extent than do other depreciable assets. Investors should review FFO, along with GAAP net income, when trying to understand an equity REIT’s operating performance. We present FFO because we consider it an important supplemental measure of our operating performance and believe that it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs. However, because FFO excludes depreciation and amortization and captures neither the changes in the value of our properties that result from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effect and could materially impact our results of operations, the utility of FFO as a measure of its performance is limited. There can be no assurance that FFO presented by us is comparable to similarly titled measures of other REITs. FFO does not represent cash generated from operating activities and should not be considered as an alternative to net income (loss) determined in accordance with GAAP or to cash flow from operating activities determined in accordance with GAAP. FFO is not indicative of cash available to fund ongoing cash needs, including the ability to make cash distributions. Although FFO is a measure used for comparability in assessing the performance of REITs, as the NAREIT White Paper only provides guidelines for computing FFO, the computation of FFO may vary from one company to another.

Modified Funds From Operations (“Modified FFO”)

Modified FFO adds back an adjustment for any above or below-market ground lease amortization to traditionally defined FFO. We consider this a useful supplemental measure in evaluating our operating performance due to the non-cash accounting treatment under GAAP, which stems from the July 2014 acquisition of two properties as they carry significantly below market ground leases, the amortization of which is material to our overall results. We present Modified FFO because we consider it an important supplemental measure of our operating performance in that it adds back the non-cash amortization of below-market ground leases. There can be no assurance that Modified FFO presented by us is comparable to similarly titled measures of other REITs. Modified FFO does not represent cash generated from operating activities and should not be considered as an alternative to net income (loss) determined in accordance with GAAP or to cash flow from operating activities determined in accordance with GAAP. Modified FFO is not indicative of cash available to fund ongoing cash needs, including the ability to make cash distributions.

Core Funds From Operations (“Core FFO”)

Core FFO adds back to Modified FFO the following items associated with the Company’s initial public offering, or IPO, and formation transactions: gain on consolidation of non-controlling entities, acquisition expenses, severance expenses and retirement equity compensation expenses. It also adds back private perpetual preferred exchange offering expenses, acquisition expenses, and gain on settlement of lawsuit related to the Observatory, net of income taxes, deferred financing cost write-off, prepayment penalties, construction severance expenses and acquisition break-up fee. The Company presents Core FFO because it considers it an important supplemental measure of its operating performance in that it excludes items associated with its IPO and formation transactions and other non-recurring items. There can be no assurance that Core FFO presented by the Company is comparable to similarly titled measures of other REITs. Core FFO does not represent cash generated from operating activities and should not be considered as an alternative to net income (loss) determined in accordance with GAAP or to cash flow from operating activities determined in accordance with GAAP. Core FFO is not indicative of cash available to fund ongoing cash needs, including the ability to make cash distributions. In future periods, we may also exclude other items from Core FFO that we believe may help investors compare our results.

Core Funds Available for Distribution (“Core FAD”)

In addition to Core FFO, we present Core FAD by (i) adding to Core FFO non-real estate depreciation and amortization, the amortization of deferred financing costs, amortization of debt discounts and non-cash compensation expenses and (ii) deducting straight line rent, recurring second generation leasing commissions, tenant improvements, prebuilts, capital expenditures, furniture, fixtures & equipment, amortization of debt premiums and above/below market rent revenue. Core FAD is presented solely as a supplemental disclosure that we believe provides useful information regarding our ability to fund our dividends. Core FAD does not represent cash generated from operating activities and should not be considered as an alternative to net income (loss) determined in accordance with GAAP or to cash flow from operating activities determined in accordance with GAAP. Core FAD is not indicative of cash available to fund ongoing cash needs., including the ability to make cash distributions. There can be no assurance that Core FAD presented by us is comparable to similarly titled measures of other REITs.

Net Operating Income (NOI)

NOI is a non-GAAP financial measure of performance. NOI is used by investors and our management to evaluate and compare the performance of our properties and to determine trends in earnings and to compute the fair value of our properties as it is not affected by; (i) the cost of funds of the property owner, (i) the impact of depreciation and amortization expenses as well as gains or losses from the sale of operating real estate assets that are included in net income computed in accordance with GAAP, (iii) acquisition expenses and break-up fee, or (iv) general and administrative expenses and other gains and losses that are specific to the property owner. The cost of funds is eliminated from net operating income because it is specific to the particular financing capabilities and constraints of the owner. The cost of funds is also eliminated because it is dependent on historical interest rates and other costs of capital as well as past decisions made by us regarding the appropriate mix of capital which may have changed or may change in the future. Depreciation and amortization expenses as well as gains or losses from the sale of operating real estate assets are eliminated because they may not accurately represent the actual change in value in our office or retail properties that result from use of the properties or changes in market conditions. While certain aspects of real property do decline in value over time in a manner that is reasonably captured by depreciation and amortization, the value of the properties as a whole have historically increased or decreased as a result of changes in overall economic conditions instead of from actual use of the property or the passage of time. Gains and losses from the sale of real property vary from property to property and are affected by market conditions at the time of sale which will usually change from period to period. These gains and losses can create distortions when comparing one period to another or when comparing our operating results to the operating results of other real estate companies that have not made similarly timed, purchases or sales. We believe that eliminating these costs from net income is useful because the resulting measure captures the actual revenue, generated and actual expenses incurred in operating our properties as well as trends in occupancy rates, rental rates and operating costs. However, the usefulness of NOI is limited because it excludes general and administrative costs, interest expense, depreciation and amortization expense and gains or losses from the sale of properties, and other gains and losses as stipulated by GAAP, the level of capital expenditures and leasing costs necessary to maintain the operating performance of our properties, all of which are significant economic costs. NOI may fail to capture significant trends in these components of net income which further limits its usefulness. NOI is a measure of the operating performance of our properties but does not measure our performance as a whole. NOI is therefore not a substitute for net income as computed in accordance with GAAP. This measure should be analyzed in conjunction with net income computed in accordance with GAAP. Other companies may use different methods for calculating NOI or similarly entitled measures and, accordingly, our NOI may not-be comparable to similarly entitled measures reported by other companies that do not define the measure exactly as we do.

EBITDA

We compute EBITDA as net income plus perpetual preferred unit distributions, interest expense, income taxes, depreciation and amortization and acquisition expenses. We present EBITDA because we believe that EBITDA, along with cash flow from operating activities, investing activities and financing activities, provides investors with an additional indicator of its ability to incur and service debt. EBITDA should not be considered as an alternative to net income (determined in accordance with GAAP), as an indication of our financial performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP), or as a measure of its liquidity.

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