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): October 31, 2018

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.)

111 West 33rd Street, 12th Floor New York, New York	10120
(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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Item 2.02. Results of Operations and Financial Condition.

On October 31, 2018, Empire State Realty Trust, Inc. (the “Company” or “we”) issued a press release announcing its financial results for the third quarter 2018. 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 third quarter 2018 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 third quarter 2018
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

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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 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 third quarter 2014 acquisition of two option properties following our formation transactions 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.

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Core Funds From Operations (“Core FFO”)

Core FFO adds back to Modified FFO the following items: acquisition expenses, deferred tax asset write-off and loss on early extinguishment of debt. The Company presents Core FFO because it considers it an important supplemental measure of its operating performance in that it excludes 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 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, (ii) 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, loss on early extinguishment of debt and loss from derivative financial instruments, 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 NOI because it is specific to the particular financing capabilities and constraints of the owner. The cost of funds is 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

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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. Other companies may use different methods for calculating NOI or similarly titled measures and, accordingly, our NOI may not be comparable to similarly titled measures reported by other companies that do not define the measure exactly as we do.

EBITDA

We compute EBITDA as net income plus interest expense, income taxes and depreciation and amortization. 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: October 31, 2018	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)
	By:	Empire State Realty Trust, Inc., as general partner
Date: October 31, 2018	By:	/s/ David A. Karp
		Name: David A. Karp
		Title: Executive Vice President and Chief Financial Officer

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EX-99.1

Exhibit 99.1

EMPIRE STATE REALTY TRUST ANNOUNCES THIRD QUARTER 2018 RESULTS

- Earnings of $0.10 Per Fully Diluted Share -

- Core FFO of $0.25 Per Fully Diluted Share -

- Leased 354,099 Square Feet of Office and Retail Space -

New York, New York, October 31, 2018 - 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 third quarter of 2018.

“We continued to execute our long-term strategy to consolidate, redevelop and re-lease space to larger, higher credit quality tenants at higher rents and create long-term value for shareholders. During the quarter, we leased approximately 354,000 square feet of office and retail space that resulted in a spread of 27.3% on new Manhattan office and a 24.1% increase in mark-to-market rent portfolio-wide over previous fully escalated rents on new, renewal, and expansion leases. Our well-located, modernized office buildings continue to attract a diverse group of prospective tenants. Our value price point between trophy Class A and Class B properties positions us well to capture steady tenant demand,” stated John B. Kessler, Empire State Realty Trust’s President and Chief Operating Officer.

“Year-to-date, Observatory revenue increased 2.6% and Observatory net operating income increased 2.4%, as compared with the first nine months of 2017, driven primarily by improved pricing. We are pleased with the positive market response to our new Observatory entrance that opened in the third quarter and look forward to sharing more of the enhanced visitor experience as we complete our work by the end of 2019,” added Kessler. “We continue to manage our balance sheet to fund our redevelopment program and shareholder value enhancement opportunities.”

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Third Quarter Highlights

• Achieved net income attributable to the Company of $0.10 per fully diluted share.

• Core Funds From Operations (“Core FFO”) was $0.25 per fully diluted share.

• Occupancy and leased percentages at September 30, 2018:

• Total portfolio was 88.4% occupied; including signed leases not commenced (“SLNC”), the total portfolio was 92.1% leased.

• Manhattan office portfolio (excluding the retail component of these properties) was 88.3% occupied; including SLNC, the Manhattan office portfolio was 93.0% leased.

• Retail portfolio was 90.8% occupied; including SLNC, the retail portfolio was 90.8% leased.

• Empire State Building was 94.0% occupied; including SLNC, was 94.3% leased.

• Signed 43 leases, representing 354,099 rentable square feet across the total portfolio, and achieved a 24.1% increase in mark-to-market rent over previous fully escalated rents portfolio-wide on new, renewal, and expansion leases.

• Signed 24 new leases representing 281,844 rentable square feet for the Manhattan office portfolio (excluding the retail component of these properties), and achieved an increase of 27.3% in mark-to-market rent over previous fully escalated rents.

• Opened the new Observatory entrance, which is the first phase of the fully reimagined Observatory experience.

• Increased Empire State Building Observatory revenue for the third quarter 2018 by 2.4% to $40.2 million from $39.3 million in the third quarter 2017.

• Authorized a $500 million stock and publicly traded operating partnership unit repurchase program through December 31, 2019.

• Declared a dividend of $0.105 per share.

Financial Results for the Third Quarter 2018

Net income attributable to common stockholders was $16.3 million, or $0.10 per fully diluted share, compared to $18.8 million, or $0.12 per fully diluted share, in the third quarter of 2017.

Core FFO was $73.0 million, or $0.25 per fully diluted share, compared to $77.5 million, or $0.26 per fully diluted share, in the third quarter of 2017.

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Modified FFO was $73.0 million, or $0.25 per fully diluted share, compared to $75.3 million, or $0.25 per fully diluted share, in the third quarter of 2017.

FFO was $71.0 million, or $0.24 per fully diluted share, compared to $73.4 million, or $0.25 per fully diluted share, in the third quarter of 2017.

A reconciliation of net income to FFO, Modified FFO and Core FFO is provided in the tables accompanying this press release.

Financial Results for the Nine Months Ended September 30, 2018

Net income attributable to common stockholders was $42.8 million, or $0.26 per fully diluted share, compared to $45.4 million, or $0.29 per fully diluted share, in the nine months ended September 30, 2017.

Core FFO was $203.2 million, or $0.68 per fully diluted share, compared to $212.0 million, or $0.71 per fully diluted share, in the nine months ended September 30, 2017.

Modified FFO was $203.2 million, or $0.68 per fully diluted share, compared to $209.9 million, or $0.70 per fully diluted share, in the nine months ended September 30, 2017.

FFO was $197.3 million, or $0.66 per fully diluted share, compared to $204.0 million, or $0.68 per fully diluted share, in the nine months ended September 30, 2017.

Portfolio Operations

As of September 30, 2018, the Company’s total portfolio contained 10.1 million rentable square feet of office and retail space. The Company’s occupancy levels fluctuate in certain periods due to the timing lag that exists between the date of tenants’ move out and the date of Company’s completion of redevelopment work for new leases to commence. As of September 30, 2018, the Company’s portfolio was occupied and leased as follows. Leased percentages include signed leases not commenced.

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	September 30, 2018			June 30, 2018			September 30, 2017
Percent occupied:
Total portfolio		88.4	%		88.4	%		89.8	%
Total office		88.3	%		88.4	%		89.5	%
Manhattan office		88.3	%		88.3	%		89.1	%
Empire State Building		94.0	%		92.9	%		93.3	%
Retail		90.8	%		88.3	%		94.1	%
Percent leased:
Total portfolio		92.1	%		91.4	%		91.7	%
Total office		92.2	%		91.4	%		91.5	%
Manhattan office		93.0	%		91.9	%		91.5	%
Empire State Building		94.3	%		94.6	%		93.5	%
Retail		90.8	%		91.1	%		94.1	%

Leasing

For the three months ended September 30, 2018, the Company signed 43 new, renewal, and expansion leases within the total portfolio, comprising 354,099 rentable square feet with an average starting rental rate of $58.48 per rentable square foot, representing an increase of 24.1% over the previous fully escalated rent.

On a blended basis, the 36 new, renewal, and expansion office leases, comprising 315,056 rentable square feet, signed within the Manhattan office portfolio during the third quarter, had an average starting rental rate of $60.99 per rentable square foot, representing an increase of 26.1% over the previous fully escalated rent.

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Leases Signed in the Third Quarter 2018 for the Manhattan Office Portfolio

• 24 new leases, comprising 281,844 rentable square feet, with an average starting rental rate of $61.84 per rentable square foot, representing an increase of 27.3% over the previous fully escalated rent, and

• 12 renewal leases, comprising 33,212 rentable square feet, with an average starting rental rate of $53.77 per rentable square foot, representing an increase of 14.7% over the previous fully escalated rent.

Significant Leases Executed During the Third Quarter 2018

• At 1400 Broadway, the Company signed a new three floor office lease totaling 91,200 rentable square feet with Signature Bank for a term of 16.1 years.

• At 111 West 33^rd Street, the Company signed a new full and a partial floor office lease totaling 44,700 rentable square feet with Diligent Corporation for a term of 11.4 years.

• At 111 West 33^rd Street, the Company signed a new full floor office lease totaling 10,540 rentable square feet with ClearView Healthcare Partners for a term of 5.1 years.

• At the Empire State Building, the Company signed an expansion lease totaling 26,800 rentable square feet with HNTB Corporation for a term of 10.3 years. HNTB Corporation will now occupy a total of 105,100 square feet at the Empire State Building.

Empire State Building

The Company continues to renovate and lease the 2.8 million rentable square foot Empire State Building, its flagship property.

During the third quarter 2018, the Company opened the new Observatory entrance, which is the first phase of a fully reimagined Observatory experience. The new entrance provides Observatory visitors with an enhanced visitor journey focused on key recallable moments that celebrate the authentic and iconic Empire State Building experience. The Company has improved the customer experience with new self-serve, digital ticketing kiosks and more efficient security screening. Furthermore, the new entrance reroutes approximately four million annual visitors from the Fifth Avenue entrance, which reduces congestion in the Fifth Avenue lobby and improves the value of the office and 34^th Street retail components of the Empire State Building.

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During the third quarter 2018, the Company signed ten office leases at the Empire State Building, representing 61,886 rentable square feet in the aggregate.

Observatory revenue for the third quarter 2018 was $40.2 million, a 2.4% increase from $39.3 million in the third quarter 2017. The Observatory hosted approximately 1,168,000 visitors in the third quarter 2018 compared to 1,237,000 visitors in the third quarter 2017, a decrease of 5.6%. There were 11 bad weather days compared to 14 bad weather days in the third quarter 2017. For the third quarter 2018, the Company estimates that bad weather days resulted in approximately twenty four thousand less visitors than in the prior year period based upon the timing of the bad weather days.

Observatory revenue was $96.7 million for the nine months ended September 30, 2018, a 2.6% increase from $94.2 million for the nine months ended September 30, 2017. The 102nd floor observation deck was closed in the first quarter of 2018 for the scheduled replacement of original elevator machinery with a new, higher speed glass elevator. Adjusting for first quarter revenue from the 102^nd floor observation deck (which was $1.9 million in 2017), revenue would have increased 4.7% for the nine months ended September 30, 2018 as compared with the same period in 2017. For the nine months ended September 30, 2018, the Observatory hosted approximately 2,860,000 visitors, compared to 2,949,000 visitors for the same period in 2017, a decrease of 3.0%. For the nine months ended September 30, 2018, there were 37 bad weather days compared to 51 bad weather days in the nine months ended September 30, 2017.

Balance Sheet

At September 30, 2018, there was no outstanding balance under the Company’s $1.1 billion unsecured revolving credit facility and the Company’s $265 million term loan facility was fully drawn. The facilities have an accordion feature allowing for an additional increase in the maximum aggregate principal balance to $1.75 billion under certain circumstances. The Company held cash, cash equivalents and short-term investments of $629.7 million at September 30, 2018.

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As of September 30, 2018, the Company had total debt outstanding of approximately $1.9 billion, with a weighted average interest rate of 3.84% per annum, and a weighted average term to maturity of 8.3 years. None of the Company’s outstanding debt is subject to variable interest rates. At September 30, 2018, the Company’s consolidated net debt to total market capitalization was approximately 20.4% and consolidated net debt to EBITDA was 3.7x.

Stock and Publicly Traded Operating Partnership Unit Repurchase Program

The Company’s Board of Directors authorized the repurchase of up to $500 million of the Company’s Class A common stock (“Common Stock”) and Empire State Realty OP, L.P.’s Series ES, Series 250 and Series 60 operating partnership units (NYSE Arca: ESBA, FISK and OGCP, respectively; collectively with the Common Stock, the “Securities”) through December 31, 2019.

Under the program, the Company may purchase its Securities in accordance with applicable securities laws from time to time in the open market or in privately negotiated transactions. The timing, manner, price and amount of any repurchases will be determined by the Company at its discretion and will be subject to stock price, availability, trading volume and general market conditions. The authorization does not obligate the Company to acquire any particular amount of Securities and the program may be suspended or discontinued at the Company’s discretion without prior notice.

Dividend

On September 28, 2018, the Company paid a dividend of $0.105 per share for the third quarter 2018 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 third quarter 2018 to holders of the operating partnership’s private perpetual preferred units.

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Webcast and Conference Call Details

Empire State Realty Trust, Inc. will host a webcast and conference call, open to the general public, on Thursday, November 1, 2018 at 8:30 am Eastern time.

The webcast will be accessible in the “Investors” section of the Company’s website at www.empirestaterealtytrust.com. To listen to the live webcast, 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.

The conference call can also be accessed by dialing 1-877-407-3982 for domestic callers or 1-201-493-6780 for international callers. A dial-in replay will be available starting shortly after the call until November 8, 2018, which can be accessed by dialing 1-844-512-2921 for domestic callers or 1-412-317-6671 for international callers. The passcode for this dial-in replay is 13683909.

The Supplemental Report will be available prior to the conference call in the “Investors” section of the Company’s website at 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 September 30, 2018, consisting of 9.4 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 700,000 rentable square feet in the retail portfolio.

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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 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 legal proceedings 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 operating partnership units; changes in our business strategy; 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; termination or expiration of our ground leases; our failure to obtain or maintain necessary outside financing, including our unsecured revolving credit facility and term loan facility; our leverage; decreased rental rates or increased vacancy rates; our failure to redevelop and reposition properties, or to execute any newly planned capital project, 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) and capital projects, including the cost of construction delays and cost overruns; impact of changes in governmental regulations, tax law and rates and similar matters; and our failure to qualify as a real estate investment trust, or REIT. 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 Company’s Annual Report on Form 10-K for the year ended December 31, 2017, and other risks described in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission.

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, new information, data or methods, future events, or other changes after the date of this press release, except as required by applicable law. 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).

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Contact:

Investors

Empire State Realty Trust Investor Relations

(212) 850-2678

IR@empirestaterealtytrust.com

Media

Sard Verbinnen & Co.

(212) 687-8080

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Empire State Realty Trust, Inc.

Condensed Consolidated Statements of Income

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

	Three Months Ended September 30,
	2018			2017
Revenues
Rental revenue	$	123,621		$	122,391
Tenant expense reimbursement		18,627			20,346
Observatory revenue		40,241			39,306
Lease termination fees		1,185			1,165
Third-party management and other fees		312			345
Other revenue and fees		2,416			2,993
Total revenues		186,402			186,546
Operating expenses
Property operating expenses		42,772			41,270
Ground rent expenses		2,331			2,331
General and administrative expenses		13,148			12,899
Observatory expenses		8,854			8,648
Real estate taxes		28,284			26,901
Depreciation and amortization		42,475			38,490
Total operating expenses		137,864			130,539
Total operating income		48,538			56,007
Other income (expense):
Interest income		3,485			774
Interest expense		(20,658	)		(16,890	)
Loss on early extinguishment of debt		—			(2,157	)
Income before income taxes		31,365			37,734
Income tax expense		(2,135	)		(2,245	)
Net income		29,230			35,489
Preferred unit distributions		(234	)		(234	)
Net income attributable to non-controlling interests		(12,654	)		(16,449	)
Net income attributable to common stockholders	$	16,342		$	18,806
Total weighted average shares
Basic		167,657			158,102
Diluted		297,478			297,871
Net income per share attributable to common stockholders
Basic	$	0.10		$	0.12
Diluted	$	0.10		$	0.12

11

Empire State Realty Trust, Inc.

Condensed Consolidated Statements of Income

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

	Nine Months Ended September 30,
	2018			2017
Revenues
Rental revenue	$	369,970		$	360,348
Tenant expense reimbursement		52,626			53,889
Observatory revenue		96,691			94,212
Lease termination fees		2,164			10,354
Third-party management and other fees		1,151			1,088
Other revenue and fees		9,600			7,338
Total revenues		532,202			527,229
Operating expenses
Property operating expenses		126,375			122,009
Ground rent expenses		6,994			6,994
General and administrative expenses		39,001			36,566
Observatory expenses		23,868			23,079
Real estate taxes		81,771			76,001
Depreciation and amortization		121,826			119,868
Total operating expenses		399,835			384,517
Total operating income		132,367			142,712
Other income (expense):
Interest income		7,209			2,169
Interest expense		(58,774	)		(52,109	)
Loss on early extinguishment of debt		—			(2,157	)
Loss from derivative financial instruments		—			(289	)
Income before income taxes		80,802			90,326
Income tax expense		(3,330	)		(4,333	)
Net income		77,472			85,993
Preferred unit distributions		(702	)		(702	)
Net income attributable to non-controlling interests		(34,009	)		(39,916	)
Net income attributable to common stockholders	$	42,761		$	45,375
Total weighted average shares
Basic		165,613			157,796
Diluted		297,181			298,089
Net income per share attributable to common stockholders
Basic	$	0.26		$	0.29
Diluted	$	0.26		$	0.29

12

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 September 30,
	2018			2017
Net income	$	29,230		$	35,489
Preferred unit distributions		(234	)		(234	)
Real estate depreciation and amortization		42,004			38,134
FFO attributable to common stockholders and non-controlling interests		71,000			73,389
Amortization of below-market ground leases		1,957			1,957
Modified FFO attributable to common stockholders and non-controlling interests		72,957			75,346
Loss on early extinguishment of debt		—			2,157
Core FFO attributable to common stockholders and non-controlling interests	$	72,957		$	77,503
Total weighted average shares
Basic		297,478			296,389
Diluted		297,478			297,871
FFO per share
Basic	$	0.24		$	0.25
Diluted	$	0.24		$	0.25
Modified FFO per share
Basic	$	0.25		$	0.25
Diluted	$	0.25		$	0.25
Core FFO per share
Basic	$	0.25		$	0.26
Diluted	$	0.25		$	0.26

13

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)

	Nine Months Ended September 30,
	2018			2017
Net income	$	77,472		$	85,993
Preferred unit distributions		(702	)		(702	)
Real estate depreciation and amortization		120,521			118,690
FFO attributable to common stockholders and non-controlling interests		197,291			203,981
Amortization of below-market ground leases		5,873			5,873
Modified FFO attributable to common stockholders and non-controlling interests		203,164			209,854
Loss on early extinguishment of debt		—			2,157
Core FFO attributable to common stockholders and non-controlling interests	$	203,164		$	212,011
Total weighted average shares
Basic		297,180			296,389
Diluted		297,181			298,089
FFO per share
Basic	$	0.66		$	0.69
Diluted	$	0.66		$	0.68
Modified FFO per share
Basic	$	0.68		$	0.71
Diluted	$	0.68		$	0.70
Core FFO per share
Basic	$	0.68		$	0.72
Diluted	$	0.68		$	0.71

14

Empire State Realty Trust, Inc.

Condensed Consolidated Balance Sheets

(unaudited and amounts in thousands)

	September 30, 2018			December 31, 2017
Assets
Commercial real estate properties, at cost	$	2,825,955		$	2,667,655
Less: accumulated depreciation		(718,959	)		(656,900	)
Commercial real estate properties, net		2,106,996			2,010,755
Cash and cash equivalents		229,745			464,344
Restricted cash		54,356			65,853
Short-term investments		400,000			—
Tenant and other receivables		31,342			28,329
Deferred rent receivables		195,455			178,629
Prepaid expenses and other assets		50,663			61,028
Deferred costs, net		244,441			262,701
Acquired below market ground leases, net		362,355			368,229
Goodwill		491,479			491,479
Total assets	$	4,166,832		$	3,931,347
Liabilities and equity
Mortgage notes payable, net	$	609,299		$	717,164
Senior unsecured notes, net		1,045,362			707,895
Unsecured term loan facility, net		264,023			263,662
Unsecured revolving credit facility		—			—
Accounts payable and accrued expenses		128,340			110,849
Acquired below market leases, net		55,662			66,047
Deferred revenue and other liabilities		32,175			40,907
Tenants’ security deposits		42,520			47,086
Total liabilities		2,177,381			1,953,610
Total equity		1,989,451			1,977,737
Total liabilities and equity	$	4,166,832		$	3,931,347

15

EX-99.2

Exhibit 99.2

Third Quarter 2018

Table of Contents	Page
Summary
Company Profile		3
Financial Highlights		4
Selected Property Data
Property Summary Net Operating Income		5
Net Operating Income and Initial Free Rent Burn-Off		6
Leasing Activity		7
Portfolio Expirations and Vacates Summary		9
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
Consolidated Debt Analysis
Debt Summary		20
Debt Detail		21
Debt Maturities		22
Ground Leases		22
Supplemental Definitions		23

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 legal proceedings involving our company; reduced demand for office or retail space; new office or observatory development in our market; 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; 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 or to execute any planned capital project, 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; inability to comply with applicable rules and regulations and, in particular, public companies and damages resulting from security breaches through cyberattacks, cyber intrusions or otherwise, as well as other significant disruptions of our technology (IT) networks related systems. 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, 2017 and other risks described in documents we subsequently file from time to time with the Securities and Exchange Commission.

Page 2

Third Quarter 2018

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	Chairman and Chief Executive Officer
William H. Berkman	Director, Chair of Finance Committee
Leslie D. Biddle	Director
Thomas J. DeRosa	Director
Steven J. Gilbert	Director, Lead Director
S. Michael Giliberto	Director, Chair of Audit Committee
James D. Robinson IV	Director, Chair of Compensation and Nominating/Corporate Governance Committees
EXECUTIVE MANAGEMENT
Anthony E. Malkin	Chairman and Chief Executive Officer
John B. Kessler	President and Chief Operating Officer
Thomas P. Durels	Executive Vice President, Real Estate
David A. Karp	Executive Vice President and Chief Financial Officer
Thomas N. Keltner, Jr.	Executive Vice President, General Counsel and Secretary

COMPANY INFORMATION
Corporate Headquarters	Investor Relations	New York Stock Exchange
111 West 33rd Street, 12th Floor	Greg Faje	Trading Symbol: ESRT
New York, NY 10120	IR@empirestaterealtytrust.com
www.empirestaterealtytrust.com
(212) 687-8700

RESEARCH COVERAGE
Bank of America Merrill Lynch	Jeffrey Spector	(646) 855-1363	jeff.spector@baml.com
	James Feldman	(646) 855-5808	james.feldman@baml.com
BMO Capital Markets Corp.	John Kim	(212) 885-4115	jp.kim@bmo.com
BTIG	Thomas Catherwood	(212) 738-6140	tcatherwood@btig.com
Evercore ISI	Steve Sakwa	(212) 446-9462	steve.sakwa@evercoreisi.com
	Jason Green	(212) 446-9449	jason.green@evercoreisi.com
Goldman Sachs & Co. LLC	Andrew Rosivach	(212) 902-4736	rosivach@gs.com
Green Street Advisors	Daniel Ismail	(949) 640-8780	dismail@greenstreetadvisors.com
KeyBanc Capital Markets	Jordan Sadler	(917) 368-2280	jsadler@key.com
	Craig Mailman	(917) 368-2316	cmailman@key.com
Stifel	John Guinee	(443) 224-1307	jwguinee@stifel.com
Wells Fargo Securities, LLC	Blaine Heck	(443) 263-6529	blaine.heck@wellsfargo.com

Page 3

Third Quarter 2018 Financial Highlights (unaudited and dollars in thousands, except per share amounts)

	Three Months Ended
Selected Items:	September 30, 2018			June 30, 2018			March 31, 2018			December 31, 2017			September 30, 2017
Revenue	$	186,402		$	178,529		$	167,271		$	182,297		$	186,546
Net income	$	29,230		$	30,184		$	18,058		$	32,260		$	35,489
Cash net operating income (1) (2)	$	99,138		$	96,580		$	81,149		$	98,898		$	100,540
Core funds from operations (“Core FFO”) (1)	$	72,957		$	70,957		$	59,250		$	74,914		$	77,503
Core funds available for distribution (“Core FAD”) (1)	$	59,205		$	60,830		$	51,170		$	57,467		$	64,201
Core FFO per share - diluted	$	0.25		$	0.24		$	0.20		$	0.25		$	0.26
Diluted weighted average shares		297,478,000			297,244,000			296,827,000			297,898,000			297,871,000
Dividends declared and paid per share	$	0.105		$	0.105		$	0.105		$	0.105		$	0.105
Portfolio Statistics:
Number of properties		20			20			20			20			20
Total rentable square footage		10,126,547			10,140,545			10,143,376			10,144,638			10,137,074
Percent occupied (3)		88.4	%		88.4	%		88.1	%		89.6	%		89.8	%
Percent leased (4)		92.1	%		91.4	%		91.5	%		92.2	%		91.7	%
Observatory Metrics:
Number of visitors (5)		1,168,000			1,049,000			644,000			991,000			1,237,000
Change in visitors year over year		(5.6	%)		(4.1	%)		4.1	%		(4.7	%)		(5.2	%)
Observatory revenues (6)	$	40,241		$	35,201		$	21,249		$	32,906		$	39,306
Change in revenues year over year		2.4	%		3.6	%		1.5	%		(2.4	%)		3.1	%
Ratios:
Consolidated Debt to Total Market Capitalization (7)		27.6	%		27.0	%		27.4	%		21.5	%		20.4	%
Consolidated Net Debt to Total Market Capitalization (7)		20.4	%		19.7	%		19.5	%		16.6	%		15.7	%
Consolidated Debt and Perpetual Preferred Units to Total Market Capitalization (7)		28.0	%		27.4	%		27.8	%		21.9	%		20.7	%
Consolidated Net Debt and Perpetual Preferred Units to Total Market Capitalization (7)		20.8	%		20.1	%		19.9	%		17.0	%		16.1	%
Consolidated Debt to EBITDA (8)		5.5x			5.5x			5.5x			4.8x			4.5x
Consolidated Net Debt to EBITDA (8)		3.7x			3.6x			3.5x			3.5x			3.3x
Interest Coverage Ratio		5.0x			4.8x			4.4x			5.8x			5.6x
Core FFO Payout Ratio (9)		44	%		45	%		53	%		42	%		41	%
Core FAD Payout Ratio (10)		54	%		52	%		62	%		55	%		49	%
Class A common stock price at quarter end	$	16.61		$	17.10		$	16.79		$	20.53		$	20.54
Average closing price	$	17.07		$	16.89		$	18.10		$	20.46		$	20.48
Dividends per share - annualized	$	0.42		$	0.42		$	0.42		$	0.42		$	0.42
Dividend yield (11)		2.5	%		2.5	%		2.5	%		2.0	%		2.0	%
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		168,176,734			166,658,962			163,321,049			160,424,575			158,349,708
Class B common stock		1,044,169			1,045,670			1,048,161			1,052,469			1,077,740
Operating partnership units		134,112,696			135,628,967			138,627,149			138,932,443			140,989,373
Total common stock and operating partnership units outstanding (12)		303,333,599			303,333,599			302,996,359			300,409,487			300,416,821

Notes:

(1) Represents non-GAAP financial measures. For a discussion on what these metrics represent and why the Company presents them, see page 23 and for a reconciliation of these metrics to net income, see pages 5 and 19.

(2) Interest income has been reclassed from Other Revenues and Fees to Other Income (Expense) and is not included in Revenues.

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

(4) Represents occupancy and includes signed leases not commenced.

(5) Reflects the number of visitors who pass through the turnstile, excluding visitors who make a second visit on the same ticket at no additional charge.

(6) Observatory revenues include the fixed license fee received from WDFG North America, the Observatory gift shop operator. See page 16.

(7) Market capitalization represents the sum of (i) Company’s common stock per share price as of September 30, 2018 multiplied by the total outstanding number of shares of common stock and operating partnership units as of September 30, 2018; (ii) the number of perpetual preferred units at September 30, 2018 multiplied by $16.62 and (iii) our outstanding indebtedness or net indebtedness as of September 30, 2018.

(8) Calculated based on trailing 12 months EBITDA.

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

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

(11) Based on the closing price per share of Class A common stock on September 30, 2018.

(12) As of September 30, 2018, the Company has had conversions from operating partnership units and Class B common shares to Class A common shares totaling 43.7 million shares or approximately $726 million at a closing share price of $16.61. This represents a 53% increase in the number of Class A shares since the IPO.

Page 4

Third Quarter 2018 Property Summary - Net Operating Income (“NOI”) by Quarter (unaudited and dollars in thousands)

	Three Months Ended
	September 30, 2018			June 30, 2018			March 31, 2018			December 31, 2017			September 30, 2017
Total Portfolio
Revenues	$	145,849		$	142,952		$	145,559		$	149,079		$	146,895
Operating expenses		(73,387	)		(68,493	)		(73,260	)		(70,319	)		(70,502	)
Net operating income (“NOI”)		72,462			74,459			72,299			78,760			76,393
Straight-line rent		(5,000	)		(5,809	)		(5,853	)		(5,963	)		(6,861	)
Above/below-market rent revenue amortization		(1,668	)		(1,551	)		(1,168	)		(1,567	)		(1,607	)
Below-market ground lease amortization		1,957			1,958			1,958			1,958			1,957
Total cash NOI - excluding Observatory		67,751			69,057			67,236			73,188			69,882
Observatory cash NOI		31,387			27,523			13,913			25,710			30,658
Total cash NOI - including Observatory	$	99,138		$	96,580		$	81,149		$	98,898		$	100,540
Manhattan Office Portfolio (1)
Revenues	$	122,687		$	119,384		$	122,303		$	124,422		$	123,421
Operating expenses		(62,464	)		(58,457	)		(63,218	)		(59,760	)		(60,052	)
NOI		60,223			60,927			59,085			64,662			63,369
Straight-line rent		(4,068	)		(4,970	)		(6,089	)		(5,840	)		(6,825	)
Above/below-market rent revenue amortization		(1,668	)		(1,551	)		(1,168	)		(1,567	)		(1,607	)
Below-market ground lease amortization		1,957			1,958			1,958			1,958			1,957
Cash NOI	$	56,444		$	56,364		$	53,786		$	59,213		$	56,894
Greater New York Office Portfolio
Revenues	$	18,536		$	18,741		$	18,697		$	19,710		$	18,582
Operating expenses		(9,069	)		(8,326	)		(8,425	)		(8,800	)		(8,565	)
NOI		9,467			10,415			10,272			10,910			10,017
Straight-line rent		(1,014	)		(895	)		(285	)		(272	)		(190	)
Above/below-market rent revenue amortization		—			—			—			—			—
Below-market ground lease amortization		—			—			—			—			—
Cash NOI	$	8,453		$	9,520		$	9,987		$	10,638		$	9,827
Standalone Retail Portfolio
Revenues	$	4,626		$	4,827		$	4,559		$	4,947		$	4,892
Operating expenses		(1,854	)		(1,710	)		(1,617	)		(1,759	)		(1,885	)
NOI		2,772			3,117			2,942			3,188			3,007
Straight-line rent		82			56			521			149			154
Above/below-market rent revenue amortization		—			—			—			—			—
Below-market ground lease amortization		—			—			—			—			—
Cash NOI	$	2,854		$	3,173		$	3,463		$	3,337		$	3,161

Note:

(1) Includes 513,437 rentable square feet of retail space in the Company’s nine Manhattan office properties.

Page 5

Third Quarter 2018 Net Operating Income (“NOI”), Initial Free Rent Burn-Off  and Signed Leases Not Commenced (unaudited and dollars in thousands)

	Three Months Ended
Reconciliation of Net Income to NOI and Cash NOI	September 30, 2018			June 30, 2018			March 31, 2018			December 31, 2017			September 30, 2017
Net income	$	29,230		$	30,184		$	18,058		$	32,260		$	35,489
Add:
General and administrative expenses		13,148			13,225			12,628			13,749			12,899
Depreciation and amortization		42,475			39,468			39,883			40,842			38,490
Interest expense		20,658			20,525			17,591			16,364			16,890
Loss on early extinguishment of debt		—			—			—			—			2,157
Income tax expense (benefit)		2,135			1,455			(260	)		2,340			2,245
Less:
Third-party management and other fees		(312	)		(376	)		(463	)		(312	)		(345	)
Interest income		(3,485	)		(2,499	)		(1,225	)		(773	)		(774	)
Net operating income		103,849			101,982			86,212			104,470			107,051
Straight-line rent		(5,000	)		(5,809	)		(5,853	)		(5,963	)		(6,861	)
Above/below-market rent revenue amortization		(1,668	)		(1,551	)		(1,168	)		(1,567	)		(1,607	)
Below-market ground lease amortization		1,957			1,958			1,958			1,958			1,957
Total cash NOI - including Observatory		99,138			96,580			81,149			98,898			100,540
Less: Observatory NOI		(31,387	)		(27,523	)		(13,913	)		(25,710	)		(30,658	)
Total cash NOI - excluding Observatory	$	67,751		$	69,057		$	67,236		$	73,188		$	69,882
Cash NOI by Portfolio
Manhattan Office Portfolio	$	56,444		$	56,364		$	53,786		$	59,213		$	56,894
Greater New York Office Portfolio		8,453			9,520			9,987			10,638			9,827
Standalone Retail Portfolio		2,854			3,173			3,463			3,337			3,161
Total cash NOI - excluding Observatory		67,751			69,057			67,236			73,188			69,882
Observatory cash NOI		31,387			27,523			13,913			25,710			30,658
Total cash NOI - including Observatory	$	99,138		$	96,580		$	81,149		$	98,898		$	100,540

Schedule of Initial Free Rent Burn-Off

As of September 30, 2018, the Company had approximately $49 million of annualized cash rents that have yet to contribute to Cash NOI:

	Annualized		Cash Base Rent Contributing to Cash NOI in the Following Years on a Cumulative Basis
Total Portfolio	Initial Base Cash Rent		Remaining 2018		2019		2020		2021
Commenced leases in free rent period	$	27,381	$	1,576	$	22,099	$	27,381	$	27,381
Signed leases not commenced		21,940		197		6,160		19,952		21,940
Total	$	49,321	$	1,773	$	28,259	$	47,333	$	49,321

Signed leases not commenced

			9/30/18				Expected Base Rent				Incremental
	Square		Escalated		New		Commencement				Annual
Tenant	Feet		Annual Rent		Annual Rent		GAAP		Cash		Revenue
Clearview Healthcare Partners LLC		10,539	$	—	$	720		Oct. 2018		Dec. 2018	$	720
Captivate		12,352		—		690		Nov. 2018		Mar. 2019		690
Michael J. Fox Foundation		10,533		—		670		Dec. 2018		May 2019		670
Nespresso		41,835		—		2,380		Dec. 2018		Aug. 2019		2,380
Diligent Corporation		44,700		730		2,860		Dec. 2018 - Mar. 2020		Aug. 2019 - Nov. 2020		2,130
Prime Clerk LLC		15,675		—		850		Apr. 2019		Jan. 2020		850
Fragoman, Del Rey, Bernsen & Loewy LLP		107,680		1,090		5,920		Jul. 2019		Jan. 2020		4,830
Signature Bank		91,181		—		5,440		Jul.- Sept. 2019		May 2020		5,440
Other SLNC		77,193		40		4,270		Oct. 2018 - Apr. 2019		Dec. 2018 - Sept. 2019		4,230
Total		411,688	$	1,860	$	23,800					$	21,940

Page 6

Third Quarter 2018 Property Summary - Leasing Activity by Quarter (unaudited)

	Three Months Ended
	September 30, 2018			June 30, 2018			March 31, 2018			December 31, 2017			September 30, 2017
Total Portfolio
Total leases executed		43			37			41			55			34
Weighted average lease term		9.8 years			6.1 years			7.1 years			8.1 years			12.2 years
Average free rent period		6.8 months			4.5 months			4.8 months			6.4 months			9.3 months
Office
Total square footage executed		353,686			142,286			253,626			252,244			487,854
Average rent psf - leases executed	$	58.47		$	55.45		$	54.51		$	56.14		$	52.52
Previously escalated rents psf	$	47.10		$	46.86		$	48.53		$	44.85		$	41.12
Percentage of new rent over previously escalated rents		24.1	%		18.3	%		12.3	%		25.2	%		27.7	%
Retail
Total square footage executed		413			1,131			5,904			22,744			—
Average rent psf - leases executed	$	65.03		$	122.02		$	175.43		$	115.33		$	—
Previously escalated rents psf	$	63.22		$	122.83		$	175.43		$	86.38		$	—
Percentage of new rent over previously escalated rents		2.9	%		(0.7	%)		0.0	%		33.5	%		0.0	%
Total Portfolio
Total square footage executed		354,099			143,417			259,530			274,988			487,854
Average rent psf - leases executed	$	58.48		$	55.99		$	57.29		$	61.42		$	52.52
Previously escalated rents psf	$	47.12		$	47.48		$	51.44		$	48.45		$	41.12
Percentage of new rent over previously escalated rents		24.1	%		17.9	%		11.4	%		26.8	%		27.7	%
Leasing commission costs per square foot	$	22.33		$	10.66		$	15.35		$	18.06		$	22.15
Tenant improvement costs per square foot		75.17			66.27			49.54			65.95			72.92
Total LC and TI per square foot (2)	$	97.50		$	76.93		$	64.89		$	84.01		$	95.07
Occupancy		88.4	%		88.4	%		88.1	%		89.6	%		89.8	%
Manhattan Office Portfolio (1)
Total leases executed		37			30			31			41			27
Office - New Leases
Total square footage executed		281,844			83,251			158,932			170,669			276,964
Average rent psf - leases executed	$	61.84		$	62.88		$	59.51		$	61.31		$	58.79
Previously escalated rents psf	$	48.56		$	49.69		$	48.05		$	45.80		$	40.24
Percentage of new rent over previously escalated rents		27.3	%		26.5	%		23.8	%		33.9	%		46.1	%
Office - Renewal Leases
Total square footage executed		33,212			27,738			33,964			43,237			38,180
Average rent psf - leases executed	$	53.77		$	53.48		$	56.31		$	53.72		$	56.12
Previously escalated rents psf	$	46.90		$	49.35		$	56.22		$	47.65		$	50.02
Percentage of new rent over previously escalated rents		14.7	%		8.4	%		0.2	%		12.7	%		12.2	%
Retail - New and Renewal Leases
Total square footage executed		413			1,131			—			20,366			—
Average rent psf - leases executed	$	65.03		$	122.02		$	—		$	99.98		$	—
Previously escalated rents psf	$	63.22		$	122.83		$	—		$	70.61		$	—
Percentage of new rent over previously escalated rents		2.9	%		(0.7	%)		0.0	%		41.6	%		0.0	%
Total Manhattan Office Portfolio
Total square footage executed		315,469			112,120			192,896			234,272			315,144
Average rent psf - leases executed	$	61.00		$	61.15		$	58.94		$	63.27		$	58.46
Previously escalated rents psf	$	48.40		$	50.35		$	49.49		$	48.30		$	41.42
Percentage of new rent over previously escalated rents		26.0	%		21.5	%		19.1	%		31.0	%		41.1	%
Leasing commission costs per square foot	$	24.23		$	11.70		$	18.56		$	19.02		$	26.21
Tenant improvement costs per square foot		79.42			68.11			63.22			69.16			80.69
Total LC and TI per square foot (2)	$	103.65		$	79.81		$	81.78		$	88.18		$	106.90
Occupancy		88.3	%		88.1	%		87.3	%		89.0	%		89.2	%

Page 7

Third Quarter 2018 Property Summary - Leasing Activity by Quarter - (Continued) (unaudited )

	Three Months Ended
	September 30, 2018			June 30, 2018			March 31, 2018			December 31, 2017			September 30, 2017
Greater New York Office Portfolio
Total leases executed		6			7			8			11			7
Total square footage executed		38,630			31,297			60,730			38,338			172,710
Average rent psf - leases executed	$	37.92		$	34.31		$	39.85		$	35.89		$	41.68
Previously escalated rents psf	$	36.63		$	35.43		$	45.36		$	37.45		$	40.57
Percentage of new rent over previously escalated rents		3.5	%		(3.2	%)		(12.1	%)		(4.2	%)		2.7	%
Leasing commission costs per square foot	$	6.81		$	6.95		$	4.21		$	10.35		$	14.74
Tenant improvement costs per square foot		40.47			59.68			7.89			50.40			58.76
Total LC and TI per square foot (2)	$	47.28		$	66.63		$	12.10		$	60.75		$	73.50
Occupancy		88.3	%		88.9	%		90.8	%		91.2	%		91.3	%
Standalone Retail Portfolio
Total leases executed		—			—			2			3			—
Total square footage executed		—			—			5,904			2,378			—
Average rent psf - leases executed	$	—		$	—		$	175.42		$	246.78		$	—
Previously escalated rents psf	$	—		$	—		$	175.42		$	221.47		$	—
Percentage of new rent over previously escalated rents		0.0	%		0.0	%		0.0	%		11.4	%		0.0	%
Leasing commission costs per square foot	$	—		$	—		$	25.20		$	48.45		$	—
Tenant improvement costs per square foot		—			—			31			—			—
Total LC and TI per square foot (2)	$	—		$	—		$	56.51		$	48.45		$	—
Occupancy		94.4	%		95.4	%		97.3	%		99.4	%		99.4	%

Notes:

(1) Includes 513,437 rentable square feet of retail space in the Company’s nine Manhattan office properties.

(2) 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.

Page 8

Third Quarter 2018 Total Portfolio Expirations and Vacates Summary (unaudited and in square feet)

	Actual			Forecast (1)			Forecast (1)
	Three Months Ended						Three Months Ended
Total Portfolio (2)	September 30, 2018			December 31, 2018			March 31, 2019			June 30, 2019		September 30, 2019		December 31, 2019		Full Year 2019			Full Year 2020
Total Expirations		278,217			191,205			103,173			138,386		184,141		284,834		710,534			852,301
Less: Broadcasting		(26,038	)		(27,283	)		(586	)		—		—		—		(586	)		(1,673	)
Office and Retail Expirations		252,179			163,922			102,587			138,386		184,141		284,834		709,948			850,628
Renewal & Relocations (3)		32,796			50,142			18,765			72,485		16,043		56,081		163,374			346,260
Short-term renewals (4)		14,796			—			—			—		—		—		—			—
New Leases (5)		39,252			33,106			6,295			—		3,533		13,969		23,797			21,819
Tenant Vacates (6)		55,567			31,546			48,277			11,215		41,099		114,542		215,133			101,708
Intentional Vacates (7)		91,652			45,782			1,501			30,979		51,492		72,389		156,361			31,089
Holdover (8)		18,116			—			—			—		—		—		—			—
Unknown (9)		—			3,346			27,749			23,707		71,974		27,853		151,283			349,752
Total Portfolio expirations and vacates		252,179			163,922			102,587			138,386		184,141		284,834		709,948			850,628
Manhattan Office Portfolio
Total Expirations		202,295			179,237			76,362			78,252		170,745		133,816		459,175			588,079
Less: Broadcasting		(26,038	)		(27,283	)		(586	)		—		—		—		(586	)		(1,673	)
Office Expirations		176,257			151,954			75,776			78,252		170,745		133,816		458,589			586,406
Renewal & Relocations (3)		26,121			40,946			15,618			22,788		10,453		38,887		87,746			175,786
Short-term renewals (4)		4,517			—			—			—		—		—		—			—
New Leases (5)		8,662			33,106			6,295			—		3,533		13,969		23,797			21,819
Tenant Vacates (6)		49,407			31,546			42,173			2,640		41,099		17,815		103,727			56,269
Intentional Vacates (7)		69,434			45,782			1,501			30,979		45,733		54,956		133,169			31,089
Holdover (8)		18,116			—			—			—		—		—		—			—
Unknown (9)		—			574			10,189			21,845		69,927		8,189		110,150			301,443
Total expirations and vacates		176,257			151,954			75,776			78,252		170,745		133,816		458,589			586,406
Greater New York Metropolitan Area Office Portfolio
Office Expirations		73,675			11,968			26,811			57,361		7,146		133,585		224,903			235,589
Renewal & Relocations (3)		6,675			9,196			3,147			46,924		5,099		17,194		72,364			160,815
Short-term renewals (4)		10,279			—			—			—		—		—		—			—
New Leases (5)		30,590			—			—			—		—		—		—			—
Tenant Vacates (6)		4,155			—			6,104			8,575		—		96,727		111,406			42,507
Intentional Vacates (7)		21,976			—			—			—		—		—		—			—
Holdover (8)		—			—			—			—		—		—		—			—
Unknown (9)		—			2,772			17,560			1,862		2,047		19,664		41,133			32,267
Total expirations and vacates		73,675			11,968			26,811			57,361		7,146		133,585		224,903			235,589
Retail Portfolio
Retail Expirations		2,247			—			—			2,773		6,250		17,433		26,456			28,633
Renewal & Relocations (3)		—			—			—			2,773		491		—		3,264			9,659
Short-term renewals (4)		—			—			—			—		—		—		—			—
New Leases (5)		—			—			—			—		—		—		—			—
Tenant Vacates (6)		2,005			—			—			—		—		—		—			2,932
Intentional Vacates (7)		242			—			—			—		5,759		17,433		23,192			—
Holdover (8)		—			—			—			—		—		—		—			—
Unknown (9)		—			—			—			—		—		—		—			16,042
Total expirations and vacates		2,247			—			—			2,773		6,250		17,433		26,456			28,633

Notes:

(1) These forecasts, which are subject to change, are based on management’s expectations, including, among other things, discussions with and other information provided by tenants as well as management’s analyses of past historical trends.

(2) Any lease on month to month or short-term will re-appear in “Actual” in each period until tenant has vacated or renewed, and thus it would be double counted if periods were cumulated. “Forecast” avoids double counting.

(3) For forecasted periods, “Renewals” assume tenants renew their existing leases in all or a portion of their current spaces, and “Relocations” assume tenants move within a building or within the Company’s portfolio.

(4) Represents tenants which signed renewal leases for a term of less than six months and reappear in forecast periods in 2018.

(5) For forecasted periods, “New Leases” represents leases that have been signed with a new tenant, a subtenant who signed a direct lease or a tenant who expanded. The lease commencement dates are not provided in this section.

(6) For forecasted periods, “Tenant Vacates” assumes a tenant elects not to renew at the end of their existing lease or exercises an early termination option.

(7) For forecasted periods, “Intentional Vacates” assumes the Company decides not to renew tenant at the end of their existing lease due to anticipated future redevelopment or for other reasons. This also may include early lease terminations.

(8) Holdover represents a tenant that remains in its space, paying rent after the expiration of its lease, but is not anticipated to continue doing so on a monthly basis. These tenants may reappear in forecast periods in 2018.

(9) For forecasted periods, “Unknown” represents tenants’ existing leases which do not fall into any of the above categories: Renewals & Relocations, New Leases, Tenant Vacates or Intentional Vacates and tenants’ whose intention is unknown.

Page 9

Third Quarter 2018 Property Detail (unaudited)

Property Name	Location or Sub-Market	Rentable Square Feet (1)		Percent Occupied (2)			Annualized Rent (3)		Annualized Rent per Occupied Square Foot (4)		Number of Leases (5)
Manhattan Office Properties - Office
The Empire State Building (6)	Penn Station -Times Sq. South		2,711,148		95.0	%	$	145,071,461	$	56.34		183
One Grand Central Place	Grand Central		1,247,419		89.0	%		62,902,812		56.64		213
1400 Broadway (8)	Penn Station -Times Sq. South		911,112		73.4	%		32,810,884		49.09		28
111 West 33rd Street (9)	Penn Station -Times Sq. South		639,304		67.5	%		24,567,157		56.90		16
250 West 57th Street	Columbus Circle - West Side		468,602		91.2	%		24,149,652		56.51		68
501 Seventh Avenue	Penn Station -Times Sq. South		460,150		93.1	%		19,117,644		44.65		28
1359 Broadway	Penn Station -Times Sq. South		455,824		97.1	%		23,340,536		52.75		35
1350 Broadway (10)	Penn Station -Times Sq. South		373,262		87.3	%		18,493,614		56.73		63
1333 Broadway	Penn Station -Times Sq. South		292,835		89.4	%		13,316,112		50.89		10
Manhattan Office Properties - Office			7,559,656		88.3	%		363,769,871		54.53		644
Manhattan Office Properties - Retail
The Empire State Building (7)	Penn Station -Times Sq. South		104,558		69.8	%		13,295,326		182.19		14
One Grand Central Place	Grand Central		68,563		79.0	%		6,367,515		117.63		13
1400 Broadway (8)	Penn Station -Times Sq. South		20,418		77.4	%		2,040,613		129.05		8
112 West 34th Street (9)	Penn Station -Times Sq. South		90,132		100.0	%		22,596,784		250.71		4
250 West 57th Street	Columbus Circle - West Side		67,927		100.0	%		9,973,756		146.83		8
501 Seventh Avenue	Penn Station -Times Sq. South		35,558		88.3	%		2,011,424		64.05		9
1359 Broadway	Penn Station -Times Sq. South		27,506		100.0	%		2,245,576		81.64		6
1350 Broadway (10)	Penn Station -Times Sq. South		31,774		100.0	%		6,780,827		213.41		6
1333 Broadway	Penn Station -Times Sq. South		67,001		100.0	%		8,719,437		130.14		4
Manhattan Office Properties - Retail			513,437		89.3	%		74,031,258		161.40		72
Sub-Total/Weighted Average
Manhattan Office Properties - Office and Retail			8,073,093		88.3	%		437,801,129		61.40		716
Greater New York Metropolitan Area Office Properties
First Stamford Place (11)	Stamford, CT		784,402		89.0	%		30,164,572		43.19		50
Metro Center	Stamford, CT		281,928		82.5	%		13,487,165		57.97		25
383 Main Avenue	Norwalk, CT		260,657		89.2	%		7,366,206		31.67		21
500 Mamaroneck Avenue	Harrison, NY		288,202		86.5	%		7,195,811		28.87		31
10 Bank Street	White Plains, NY		232,517		94.0	%		7,689,364		35.19		33
Sub-Total/Weighted Average Greater New York
Metropolitan Area Office Properties			1,847,706		88.3	%		65,903,118		40.40		160
Standalone Retail Properties
10 Union Square	Union Square		58,007		100.0	%		6,917,640		119.26		13
1542 Third Avenue	Upper East Side		56,250		100.0	%		3,855,912		68.55		4
1010 Third Avenue	Upper East Side		44,662		100.0	%		3,738,322		83.70		2
77 West 55th Street	Midtown		25,388		100.0	%		2,637,533		103.89		3
69-97 Main Street	Westport, CT		17,111		32.4	%		722,262		130.35		3
103-107 Main Street	Westport, CT		4,330		100.0	%		722,355		166.83		1
Sub-Total/Weighted Average Standalone
Retail Properties			205,748		94.4	%		18,594,025		95.76		26
Portfolio Total			10,126,547		88.4	%	$	522,298,271	$	58.32		902
Total/Weighted Average Office Properties			9,407,362		88.3	%	$	429,672,989	$	51.75		804
Total/Weighted Average Retail Properties			719,185		90.8	%		92,625,282		141.88		98
Portfolio Total			10,126,547		88.4	%	$	522,298,271	$	58.32		902

Notes:

(1) Excludes (i) 179,350 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 September 30, 2018.

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

(4) Represents annualized rent under leases commenced as of September 30, 2018 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 63,360 rentable square feet of space leased by the Company’s broadcasting tenants.

(7) Includes 5,300 rentable square feet of space leased by WDFG 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 45 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 59 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 32 years (expiring July 31, 2050).

(11) First Stamford Place consists of three buildings.

Page 10

Third Quarter 2018 Tenant Lease Expirations (unaudited)

					Percent of
			Rentable		Portfolio								Annualized
	Number		Square		Rentable					Percent of			Rent Per
	of Leases		Feet		Square Feet			Annualized		Annualized			Rentable
Total Lease Expirations	Expiring (1)		Expiring (2)		Expiring			Rent (3)		Rent			Square Foot
Available		—		803,315		7.9	%	$	—		0.0	%	$	—
Signed leases not commenced		24		367,423		3.6	%		—		0.0	%		—
3Q 2018 (4)		13		45,670		0.5	%		2,149,967		0.4	%		47.08
4Q 2018		56		191,205		1.9	%		9,622,278		1.8	%		50.32
Total 2018		69		236,875		2.3	%		11,772,245		2.3	%		49.70
1Q 2019		22		103,173		1.0	%		5,505,440		1.1	%		53.36
2Q 2019		29		138,386		1.4	%		8,082,923		1.5	%		58.41
3Q 2019		40		184,141		1.8	%		10,148,512		1.9	%		55.11
4Q 2019		41		284,834		2.8	%		13,401,784		2.6	%		47.05
Total 2019		132		710,534		7.0	%		37,138,659		7.1	%		52.27
2020		136		852,301		8.4	%		46,597,693		8.9	%		54.67
2021		105		696,825		6.9	%		39,380,361		7.5	%		56.51
2022		95		543,870		5.4	%		34,097,158		6.5	%		62.69
2023		83		698,721		6.9	%		41,117,309		7.9	%		58.85
2024		59		591,160		5.8	%		33,556,552		6.4	%		56.76
2025		55		376,647		3.7	%		28,119,656		5.4	%		74.66
2026		41		934,767		9.2	%		51,489,135		9.9	%		55.08
2027		43		543,865		5.4	%		31,268,652		6.0	%		57.42
Thereafter		83		2,770,244		27.5	%		167,760,851		32.1	%		60.56
Total		925		10,126,547		100.0	%	$	522,298,271		100.0	%	$	58.32
Manhattan Office Properties (5)
Available		—		529,931		7.0	%	$	—		0.0	%	$	—
Signed leases not commenced		21		358,217		4.7	%		—		0.0	%		—
3Q 2018 (4)		11		41,273		0.5	%		1,968,588		0.5	%		47.70
4Q 2018		48		179,237		2.4	%		9,174,361		2.5	%		51.19
Total 2018		59		220,510		2.9	%		11,142,949		3.1	%		50.53
1Q 2019		13		76,362		1.0	%		4,762,957		1.3	%		62.37
2Q 2019		21		78,252		1.0	%		4,111,809		1.1	%		52.55
3Q 2019		33		170,745		2.3	%		8,537,904		2.3	%		50.00
4Q 2019		34		133,816		1.8	%		7,384,224		2.0	%		55.18
Total 2019		101		459,175		6.1	%		24,796,894		6.8	%		54.00
2020		104		588,079		7.8	%		32,706,757		9.0	%		55.62
2021		66		455,980		6.0	%		24,917,000		6.8	%		54.64
2022		71		363,454		4.8	%		20,841,447		5.7	%		57.34
2023		60		517,900		6.9	%		28,629,153		7.9	%		55.28
2024		37		365,160		4.8	%		19,118,623		5.3	%		52.36
2025		35		236,225		3.1	%		13,741,633		3.8	%		58.17
2026		28		799,003		10.6	%		44,918,376		12.3	%		56.22
2027		29		391,863		5.2	%		21,554,531		5.9	%		55.01
Thereafter		54		2,274,159		30.1	%		121,402,508		33.4	%		53.38
Total Manhattan office properties		665		7,559,656		100.0	%	$	363,769,871		100.0	%	$	54.53

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) 179,350 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.

(4) Represents leases that are included in occupancy as of September 30, 2018 and expire on September 30, 2018.

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

Page 11

Third Quarter 2018 Tenant Lease Expirations (unaudited)

					Percent of
			Rentable		Portfolio								Annualized
	Number		Square		Rentable					Percent of			Rent Per
Greater New York Metropolitan	of Leases		Feet		Square Feet			Annualized		Annualized			Rentable
Area Office Properties	Expiring (1)		Expiring (2)		Expiring			Rent (3)		Rent			Square Foot
Available		—		207,045		11.2	%	$	—		0.0	%	$	—
Signed leases not commenced		3		9,206		0.5	%		—		0.0	%		—
3Q 2018 (4)		1		4,155		0.2	%		157,379		0.2	%		37.88
4Q 2018		6		11,968		0.6	%		443,117		0.7	%		37.03
Total 2018		7		16,123		0.9	%		600,496		0.9	%		37.24
1Q 2019		9		26,811		1.5	%		742,483		1.1	%		27.69
2Q 2019		7		57,361		3.1	%		2,620,448		4.0	%		45.68
3Q 2019		3		7,146		0.4	%		266,934		0.4	%		37.35
4Q 2019		6		133,585		7.2	%		4,740,591		7.2	%		35.49
Total 2019		25		224,903		12.2	%		8,370,456		12.7	%		37.22
2020		23		235,589		12.8	%		10,316,645		15.7	%		43.79
2021		31		210,934		11.4	%		9,439,606		14.3	%		44.75
2022		15		120,775		6.5	%		4,369,009		6.6	%		36.17
2023		14		126,488		6.8	%		5,737,772		8.7	%		45.36
2024		10		197,581		10.7	%		8,735,253		13.3	%		44.21
2025		12		103,097		5.6	%		3,466,487		5.3	%		33.62
2026		5		65,413		3.5	%		2,072,961		3.1	%		31.69
2027		6		64,229		3.5	%		2,334,094		3.5	%		36.34
Thereafter		12		266,323		14.4	%		10,460,339		15.9	%		39.28
Total greater New York metropolitan area office properties		163		1,847,706		100.0	%	$	65,903,118		100.0	%	$	40.40
Retail Properties
Available		—		66,339		9.2	%	$	—		0.0	%	$	—
Signed leases not commenced		—		—		0.0	%		—		0.0	%		—
3Q 2018 (4)		1		242		0.0	%		24,000		0.0	%		99.17
4Q 2018 (5)		2		—		0.0	%		4,800		0.0	%		—
Total 2018		3		242		0.0	%		28,800		0.0	%		99.17
1Q 2019		—		—		0.0	%		—		0.0	%		—
2Q 2019		1		2,773		0.4	%		1,350,666		1.5	%		487.08
3Q 2019		4		6,250		0.9	%		1,343,674		1.5	%		214.99
4Q 2019		1		17,433		2.4	%		1,276,969		1.4	%		73.25
Total 2019		6		26,456		3.7	%		3,971,309		4.3	%		150.11
2020		9		28,633		4.0	%		3,574,291		3.9	%		124.83
2021		8		29,911		4.2	%		5,023,755		5.4	%		167.96
2022		9		59,641		8.3	%		8,886,702		9.6	%		149.00
2023		9		54,333		7.6	%		6,750,384		7.3	%		124.24
2024		12		28,419		4.0	%		5,702,676		6.2	%		200.66
2025		8		37,325		5.2	%		10,911,536		11.8	%		292.34
2026		8		70,351		9.8	%		4,497,798		4.9	%		63.93
2027		8		87,773		12.2	%		7,380,027		8.0	%		84.08
Thereafter		17		229,762		31.8	%		35,898,004		38.6	%		156.24
Total retail properties		97		719,185		100.0	%	$	92,625,282		100.0	%	$	141.88

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) 179,350 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.

(4) Represents leases that are included in occupancy as of September 30, 2018 and expire on September 30, 2018.

(5) Represents two license agreements.

Page 12

Third Quarter 2018 Tenant Lease Expirations (unaudited)

					Percent of
			Rentable		Portfolio								Annualized
	Number		Square		Rentable					Percent of			Rent Per
	of Leases		Feet		Square Feet			Annualized		Annualized			Rentable
Empire State Building Office (1)	Expiring (2)		Expiring (3)		Expiring			Rent (4) (5)		Rent			Square Foot
Available		—		130,169		4.8	%	$	—		0.0	%	$	—
Signed leases not commenced		1		5,891		0.2	%		—		0.0	%		—
3Q 2018 (6)		1		4,738		0.2	%		245,004		0.2	%		51.71
4Q 2018		15		32,473		1.2	%		1,981,956		1.4	%		61.03
Total 2018		16		37,211		1.4	%		2,226,960		1.5	%		59.85
1Q 2019		5		9,288		0.3	%		486,785		0.3	%		52.41
2Q 2019		1		1,738		0.1	%		90,437		0.1	%		52.04
3Q 2019		1		5,588		0.2	%		314,590		0.2	%		56.30
4Q 2019		6		41,195		1.5	%		2,269,612		1.6	%		55.09
Total 2019		13		57,809		2.1	%		3,161,424		2.2	%		54.69
2020		34		294,210		10.9	%		17,218,004		11.9	%		58.52
2021		21		131,888		4.9	%		7,528,906		5.2	%		57.09
2022		21		95,218		3.5	%		5,970,750		4.1	%		62.71
2023		18		97,672		3.6	%		6,180,757		4.3	%		63.28
2024		13		92,516		3.4	%		5,717,776		3.9	%		61.80
2025		7		63,165		2.3	%		3,495,673		2.4	%		55.34
2026		11		459,331		16.9	%		26,773,658		18.5	%		58.29
2027		4		16,613		0.6	%		1,132,853		0.8	%		68.19
Thereafter		25		1,229,455		45.3	%		65,664,700		45.2	%		53.41
Total Empire State Building office		184		2,711,148		100.0	%	$	145,071,461		100.0	%	$	56.34
								Annualized					Percent of
					Annualized			Expense		Annualized			Annualized
Empire State Building Broadcasting Licenses and Leases					Base Rent (7)			Reimbursements		Rent (4) (8)			Rent
3Q 2018 (6)					$	487,150		$	104,747	$	591,897			3.8	%
4Q 2018						950,515			719,608		1,670,123			10.6	%
Total 2018						1,437,665			824,355		2,262,020			14.5	%
1Q 2019						212,240			48,281		260,521			1.7	%
2Q 2019						—			—		—			0.0	%
3Q 2019						—			—		—			0.0	%
4Q 2019						—			—		—			0.0	%
Total 2019						212,240			48,281		260,521			1.7	%
2020						828,209			144,218		972,427			6.2	%
2021						55,685			103,564		159,249			1.0	%
2022						1,124,545			273,346		1,397,891			8.9	%
2023						82,480			22,826		105,306			0.7	%
2024						47,271			63,729		111,000			0.7	%
2025						1,496,090			204,225		1,700,315			10.8	%
2026						799,969			87,584		887,553			5.6	%
2027						768,750			62,776		831,526			5.3	%
Thereafter						6,244,524			777,587		7,022,111			44.7	%
Total Empire State Building broadcasting licenses and leases					$	13,097,428		$	2,612,491	$	15,709,919			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 $6.7 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 leases that are included in occupancy as of September 30, 2018 and expire on September 30, 2018.

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

(8) Excludes Fox Television whose lease expired during 2017 and was billed holdover rent as of September 30, 2018.

Page 13

Third Quarter 2018 20 Largest Tenants and Portfolio Tenant Diversification by Industry (unaudited)

20 Largest Tenants	Property	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	ESB, 1333 B’Way		Oct. 2023 - Oct. 2028		9.3 years		668,942		6.4	%	$	31,409,092		6.0	%
2. LinkedIn	ESB		Feb. 2026		7.4 years		312,947		3.0	%		17,909,590		3.4	%
3. Coty	ESB		Jan. 2030		11.3 years		312,954		3.0	%		16,439,163		3.1	%
4. PVH Corp.	501 Seventh Avenue		Oct 2018 - Oct. 2028		9.8 years		237,281		2.3	%		10,743,578		2.1	%
5. Sephora	112 West 34th Street		Jan. 2029		10.3 years		11,334		0.1	%		10,457,709		2.0	%
6. Li & Fung	1359 Broadway		Oct. 2021-Oct. 2027		5.5 years		149,436		1.4	%		7,446,322		1.4	%
7. Macy’s	111 West 33rd Street		May 2030		11.7 years		131,117		1.3	%		6,947,109		1.3	%
8. Federal Deposit Insurance Corp.	ESB		Jan. 2020		1.3 years		121,879		1.2	%		6,923,222		1.3	%
9. Urban Outfitters	1333 Broadway		Sept. 2029		11.0 years		56,730		0.5	%		6,831,727		1.3	%
10. Duane Reade	ESB, 1350 B’Way, 250 West 57th		Feb. 2021-Sept. 2027		6.2 years		47,541		0.5	%		6,289,470		1.2	%
11. Footlocker	112 West 34th Street		Sept. 2031		13.0 years		34,192		0.3	%		6,258,212		1.2	%
12. Legg Mason	First Stamford Place		Sept. 2024		6.0 years		137,583		1.3	%		6,246,888		1.2	%
13. WDFG North America	ESB		Dec. 2025		7.2 years		5,300		0.1	%		5,680,776		1.1	%
14. Shutterstock	ESB		Apr. 2029		10.6 years		104,386		1.0	%		5,582,973		1.1	%
15. ASCAP	250 West 57th Street		Aug. 2034		15.9 years		87,943		0.8	%		5,250,464		1.0	%
16. Kohl’s	1400 Broadway		May 2029		10.7 years		113,032		1.1	%		5,002,974		1.0	%
17. The Gap, Inc.	111 West 33rd Street, OGCP		Jan. 2023-Jan. 2030		11.3 years		83,408		0.8	%		4,799,007		0.9	%
18. The Michael J. Fox Foundation	111 West 33rd Street		Nov. 2029		11.2 years		75,959		0.7	%		4,641,592		0.9	%
19. HNTB Corporation	ESB		Feb. 2026		10.4 years		78,361		0.8	%		4,586,184		0.9	%
20. The Interpublic Group	1400 Broadway		Jul. 2024		5.8 years		91,144		0.9	%		4,316,383		0.8	%
Total							2,861,469		27.5	%	$	173,762,435		33.2	%

Notes:

(1) Expiration dates are per lease and do not assume exercise of renewal or extension 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 September 30, 2018.

(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

Third Quarter 2018 Capital Expenditures and Redevelopment Program and Leasing Opportunity (unaudited and dollars in thousands)

	Three Months Ended
Capital expenditures	September 30, 2018		June 30, 2018		March 31, 2018		December 31, 2017		September 30, 2017
Tenant improvements - first generation	$	21,229	$	31,921	$	17,298	$	17,680	$	16,219
Tenant improvements - second generation		10,069		4,874		2,039		6,966		6,058
Leasing commissions - first generation		4,813		1,698		3,699		6,207		7,416
Leasing commissions - second generation		2,576		866		3,024		2,996		817
Building improvements - first generation		18,418		19,862		13,664		19,591		15,759
Building improvements - second generation		2,279		4,329		1,719		3,566		2,105
Observatory capital project		14,507		15,871		11,533		16,360		13,411
Total	$	73,891	$	79,421	$	52,976	$	73,366	$	61,785

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

• Future redevelopment (Empire State Building) - 220,000 square feet

• Future redevelopment (other Manhattan properties) - 520,000 square feet

• Redevelopment completed - 7,240,000 square feet

Inventory of vacant space ⁽²⁾

• Developed - 510,000 square feet, 91% ⁽³⁾

• Undeveloped - 50,000 square feet, 9%

Inventory of undeveloped space ⁽²⁾

• Vacant - 50,000 square feet, 7%

• Expires in 2018 - 70,000 square feet, 9%

• Expires in 2019 and thereafter - 620,000 square feet, 84%

Developed 120,000 square feet in the third quarter 2018 and 220,000 square feet year-to-date September 2018.

Leasing Opportunity - Inventory of Current Vacant Space as of September 30, 2018 (in square feet)

Total Portfolio vacant space	1,171,000
Signed leases not commenced (“SLNC”):
Manhattan Office Properties SLNC	359,000
Greater New York Office Properties SLNC	9,000
Retail Properties SLNC	—
Redeveloped Manhattan Office space	437,000
Greater New York Office Properties space	207,000
Retail Properties space	66,000
Undeveloped Manhattan Office space	30,000
Space held off market	29,000
Other	34,000
Total	1,171,000

Development of Space Expected to Vacate from September 30, 2018 through December 31, 2018 (in square feet)

	Expected Vacates		2018		2019		2020		Thereafter
Tenant Vacates
Developed		62,149
Undeveloped space to be developed		2,056		—		2,056		—		—
		64,205
Intentional Vacates
Developed		17,414
Undeveloped space to be developed		29,169		—		11,509		13,450		4,210
		46,583

Notes:

(1) These estimates are based on the Company’s current budgets 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.

(3) Includes 498,000 square feet of redeveloped Manhattan office space, 37,000 square feet of redeveloped retail space and the balance reflects space held off-market.

Page 15

Third Quarter 2018 Observatory Summary (unaudited and in thousands)

			Three Months Ended
Observatory NOI	Twelve Months to Date		September 30, 2018			June 30, 2018			March 31, 2018			December 31, 2017			September 30, 2017
Observatory revenue (1)	$	129,597	$	40,241		$	35,201		$	21,249		$	32,906		$	39,306
Observatory expenses		31,064		8,854			7,678			7,336			7,196			8,648
NOI		98,533		31,387			27,523			13,913			25,710			30,658
Intercompany rent expense (2)		79,648		23,805			21,990			13,561			20,292			23,301
NOI after intercompany rent	$	18,885	$	7,582		$	5,533		$	352		$	5,418		$	7,357
Observatory Metrics
Number of visitors (3)				1,168,000			1,049,000			644,000			991,000			1,237,000
Change in visitors year over year				(5.6	%)		(4.1	%)		4.1	%		(4.7	%)		(5.2	%)
Number of bad weather days (“BWD”) (4)				11			11			15			10			14
Estimated effect of BWD’s on number of visitors (5)				(24,000	)		19,000			(14,000	)		(2,000	)		(38,000	)
102nd floor revenue (6)			$	3,066		$	3,041		$	83		$	2,767		$	3,537

Notes:

(1) Observatory revenues include the fixed license fee received from WDFG North America, the Observatory gift shop operator. For the three months ended September 30, 2018, June 30, 2018, March 31, 2018, December 31, 2017 and September 30, 2017, the fixed license fee was $1,411, $1,410, $1,410, $1,369 and $1,370, respectively.

(2) 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.

(3) Reflects the number of visitors who pass through the turnstile, excluding visitors who make a second visit on the same ticket at no additional charge.

(4) The Company defines a bad weather day as one in which the top of the Empire State Building is obscured from view for more than 50% of the day.

(5) Represents an estimated reduction in the number of visitors due to bad weather days compared to the same quarter in the prior year.

(6) Reflects revenues derived from the 102nd floor observatory. This revenue is included in total observatory revenues above and will be disclosed separately throughout the duration of the observatory capital improvement program.

Annual Observatory Revenues 2013 to 2017

Page 16

Third Quarter 2018 Condensed Consolidated Balance Sheets (unaudited and dollars in thousands)

	September 30, 2018			June 30, 2018			March 31, 2018			December 31, 2017			September 30, 2017
Assets
Commercial real estate properties, at cost:
Land	$	201,196		$	201,196		$	201,196		$	201,196		$	201,196
Development costs		7,987			7,987			7,986			7,986			7,978
Building and improvements		2,616,772			2,562,662			2,495,901			2,458,473			2,398,964
		2,825,955			2,771,845			2,705,083			2,667,655			2,608,138
Less: accumulated depreciation		(718,959	)		(698,725	)		(678,250	)		(656,900	)		(631,916	)
Commercial real estate properties, net		2,106,996			2,073,120			2,026,833			2,010,755			1,976,222
Cash and cash equivalents		229,745			251,797			690,471			464,344			432,105
Restricted cash		54,356			58,719			61,699			65,853			64,020
Short term investments		400,000			400,000			—			—			—
Tenant and other receivables, net		31,342			21,600			25,156			28,329			34,661
Deferred rent receivables, net		195,455			190,419			184,667			178,629			172,665
Prepaid expenses and other assets		50,663			64,695			39,393			61,028			39,463
Deferred costs, net		244,441			246,763			255,844			262,701			268,132
Acquired below-market ground leases, net		362,355			364,313			366,271			368,229			370,187
Goodwill		491,479			491,479			491,479			491,479			491,479
Total assets	$	4,166,832		$	4,162,905		$	4,141,813		$	3,931,347		$	3,848,934
Liabilities and Equity
Mortgage notes payable, net	$	609,299		$	610,026		$	610,826		$	717,164		$	720,830
Senior unsecured notes, net		1,045,362			1,044,573			1,043,677			707,895			592,914
Unsecured term loan facility, net		264,023			263,900			263,777			263,662			263,546
Unsecured revolving credit facility		—			—			—			—			—
Accounts payable and accrued expenses		128,340			129,944			106,830			110,849			142,690
Acquired below-market leases, net		55,662			58,960			62,418			66,047			70,013
Deferred revenue and other liabilities		32,175			29,553			37,499			40,907			41,320
Tenants’ security deposits		42,520			42,808			43,448			47,086			47,395
Total liabilities		2,177,381			2,179,764			2,168,475			1,953,610			1,878,708
Total equity		1,989,451			1,983,141			1,973,338			1,977,737			1,970,226
Total liabilities and equity	$	4,166,832		$	4,162,905		$	4,141,813		$	3,931,347		$	3,848,934

Page 17

Third Quarter 2018 Condensed Consolidated Statements of Income (unaudited and in thousands, except per share amounts)

	Three Months Ended
	September 30, 2018			June 30, 2018			March 31, 2018			December 31, 2017			September 30, 2017
Revenues
Rental revenue	$	123,621		$	124,038		$	122,311		$	123,596		$	122,391
Tenant expense reimbursement		18,627			16,205			17,794			19,790			20,346
Observatory revenue		40,241			35,201			21,249			32,906			39,306
Lease termination fees		1,185			357			622			3,197			1,165
Third party management and other fees		312			376			463			312			345
Other revenue and fees		2,416			2,352			4,832	(1)		2,496			2,993
Total revenues		186,402			178,529			167,271			182,297			186,546
Operating expenses
Property operating expenses		42,772			39,418			44,185			41,522			41,270
Ground rent expenses		2,331			2,332			2,331			2,332			2,331
General and administrative expenses		13,148			13,225			12,628			13,749			12,899
Observatory expenses		8,854			7,678			7,336			7,196			8,648
Real estate taxes		28,284			26,743			26,744			26,465			26,901
Depreciation and amortization		42,475			39,468			39,883			40,842			38,490
Total operating expenses		137,864			128,864			133,107			132,106			130,539
Total operating income		48,538			49,665			34,164			50,191			56,007
Other income (expense)
Interest income		3,485			2,499			1,225			773			774
Interest expense		(20,658	)		(20,525	)		(17,591	)		(16,364	)		(16,890	)
Loss on early extinguishment of debt		—			—			—			—			(2,157	)
Loss from derivative financial instruments		—			—			—			—			—
Income before income taxes		31,365			31,639			17,798			34,600			37,734
Income tax (expense) benefit		(2,135	)		(1,455	)		260			(2,340	)		(2,245	)
Net income		29,230			30,184			18,058			32,260			35,489
Perpetual preferred unit distributions		(234	)		(234	)		(234	)		(234	)		(234	)
Net income attributable to non-controlling interests		(12,654	)		(13,299	)		(8,056	)		(14,754	)		(16,449	)
Net income attributable to common stockholders	$	16,342		$	16,651		$	9,768		$	17,272		$	18,806
Weighted average common shares outstanding
Basic		167,657			165,256			162,667			159,989			158,102
Diluted		297,478			297,244			296,827			297,898			297,871
Net income per share attributable to common stockholders
Basic and diluted	$	0.10		$	0.10		$	0.06		$	0.11		$	0.12
Dividends per share	$	0.105		$	0.105		$	0.105		$	0.105		$	0.105

Notes:

(1) Includes a $2.8 million settlement reached with a former broadcast tenant.

Page 18

Third Quarter 2018 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	September 30, 2018			June 30, 2018			March 31, 2018			December 31, 2017			September 30, 2017
Net Income	$	29,230		$	30,184		$	18,058		$	32,260		$	35,489
Preferred unit distributions		(234	)		(234	)		(234	)		(234	)		(234	)
Real estate depreciation and amortization		42,004			39,049			39,468			40,484			38,134
FFO attributable to common stockholders and non-controlled interests		71,000			68,999			57,292			72,510			73,389
Amortization of below-market ground lease		1,957			1,958			1,958			1,958			1,957
Modified FFO attributable to common stockholders and non-controlled interests		72,957			70,957			59,250			74,468			75,346
Deferred tax asset write-off		—			—			—			446			—
Loss on early extinguishment of debt		—			—			—			—			2,157
Core FFO attributable to common stockholders and non-controlled interests	$	72,957		$	70,957		$	59,250		$	74,914		$	77,503
Total weighted average shares and Operating Partnership Units
Basic		297,478			297,244			296,824			296,654			296,389
Diluted		297,478			297,244			296,827			297,898			297,871
FFO attributable to common stockholders and non-controlled interests per share
Basic	$	0.24		$	0.23		$	0.19		$	0.24		$	0.25
Diluted	$	0.24		$	0.23		$	0.19		$	0.24		$	0.25
Modified FFO attributable to common stockholders and non-controlled interests per share
Basic	$	0.25		$	0.24		$	0.20		$	0.25		$	0.25
Diluted	$	0.25		$	0.24		$	0.20		$	0.25		$	0.25
Core FFO attributable to common stockholders and non-controlled interests per share
Basic	$	0.25		$	0.24		$	0.20		$	0.25		$	0.26
Diluted	$	0.25		$	0.24		$	0.20		$	0.25		$	0.26
Reconciliation of Core FFO to Core FAD
Core FFO	$	72,957		$	70,957		$	59,250		$	74,914		$	77,503
Add:
Amortization of deferred financing costs		1,020			1,023			1,034			1,036			1,017
Non-real estate depreciation and amortization		826			419			415			358			356
Amortization of non-cash compensation expense		4,852			4,656			4,555			3,292			3,841
Amortization of debt discount		668			668			668			667			668
Amortization of loss on interest rate derivative		474			536			—			—			—
Deduct:
Straight-line rental revenues		(5,000	)		(5,809	)		(5,853	)		(5,963	)		(6,861	)
Amortization of debt premiums		—			—			(949	)		(1,737	)		(1,736	)
Above/below-market rent revenue amortization		(1,668	)		(1,551	)		(1,168	)		(1,567	)		(1,607	)
Corporate capital expenditures		—			—			—			(5	)		—
Tenant improvements - second generation		(10,069	)		(4,874	)		(2,039	)		(6,966	)		(6,058	)
Building improvements - second generation		(2,279	)		(4,329	)		(1,719	)		(3,566	)		(2,105	)
Leasing commissions - second generation		(2,576	)		(866	)		(3,024	)		(2,996	)		(817	)
Core FAD	$	59,205		$	60,830		$	51,170		$	57,467		$	64,201
Reconciliation of Net Income to EBITDA
Net income	$	29,230		$	30,184		$	18,058		$	32,260		$	35,489
Interest expense		20,658			20,525			17,591			16,364			16,890
Income tax expense (benefit)		2,135			1,455			(260	)		2,340			2,245
Depreciation and amortization		42,475			39,468			39,883			40,842			38,490
EBITDA	$	94,498		$	91,632		$	75,272		$	91,806		$	93,114

Page 19

Third Quarter 2018 Debt Summary (unaudited and dollars in thousands)

	September 30, 2018								June 30, 2018
				Weighted Average								Weighted Average
Debt Summary	Balance			Interest Rate			Maturity (Years)		Balance			Interest Rate			Maturity (Years)
Fixed rate mortgage debt	$	615,537			4.10	%		10.3	$	616,453			4.10	%		10.5
Senior unsecured notes		1,050,000			3.82	%		8.4		1,050,000			3.82	%		8.7
Unsecured term loan facility (1)		265,000			3.35	%		3.9		265,000			3.35	%		4.2
Total fixed rate debt		1,930,537			3.84	%		8.3		1,931,453			3.84	%		8.6
Unsecured revolving credit facility		—			—			2.9		—			—			3.2
Total variable rate debt		—			—			2.9		—			—			3.2
Total debt		1,930,537			3.84	%		8.3		1,931,453			3.84	%		8.6
Discount		(2,315	)							(2,983	)
Deferred financing costs, net		(9,538	)							(9,971	)
Total	$	1,918,684							$	1,918,499

Note:

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

Available Capacity	Facility		Outstanding at September 30, 2018		Letters of Credit		Available Capacity
Unsecured revolving credit facility (1)	$	1,100,000	$	—	$	—	$	1,100,000

Covenant Summary	Required			Current Quarter			In Compliance
Maximum Total Leverage(2)		< 60	%		29.0	%	Yes
Maximum Secured Debt		< 40	%		9.2	%	Yes
Minimum Fixed Charge Coverage		> 1.50x			3.9x		Yes
Minimum Unencumbered Interest Coverage		> 1.75x			5.1x		Yes
Maximum Unsecured Leverage		< 60	%		25.8	%	Yes
Minimum Tangible Net Worth	$	1,252,954		$	1,777,443		Yes

Notes:

(1) The unsecured revolving credit and term loan facility has an accordion feature allowing for an increase in maximum aggregate principal balance to $1.75 billion under certain circumstances. This unsecured revolving credit facility matures in August 2021 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 20

Third Quarter 2018 Debt Detail (unaudited and dollars in thousands)

	Stated			Current
	Interest			Interest			Principal			Maturity
	Rate (%)			Rate (%)			Balance			Date		Amortization
Fixed rate mortgage debt:
Metro Center		3.59	%		3.59	%	$	92,372			11/5/2024	30 years
10 Union Square		3.70	%		3.70	%		50,000			4/1/2026	Interest only
1542 Third Avenue		4.29	%		4.29	%		30,000			5/1/2027	Interest only
First Stamford Place (1)		4.28	%		4.28	%		180,000			7/1/2027	5 years interest only; 30 years thereafter
1010 Third Avenue and 77 West 55th Street		4.01	%		4.01	%		39,177			1/5/2028	30 years
10 Bank Street		4.23	%		4.23	%		33,988			6/1/2032	25 years
383 Main Avenue		4.44	%		4.44	%		30,000			6/30/2032	5 years interest only; 30 years thereafter
1333 Broadway		4.21	%		4.21	%		160,000			2/5/2033	Interest only
Total mortgage debt								615,537
Exchangeable senior unsecured notes		2.63	%		2.63	%		250,000			8/15/2019	Interest only
Unsecured revolving credit facility		LIBOR plus 1.10	%		3.36	%		—			8/29/2021	Interest only
Unsecured term loan facility (2)		LIBOR plus 1.20	%		3.35	%		265,000			8/29/2022	Interest only
Senior unsecured notes:
Series A		3.93	%		3.93	%		100,000			3/27/2025	Interest only
Series B		4.09	%		4.09	%		125,000			3/27/2027	Interest only
Series C		4.18	%		4.18	%		125,000			3/27/2030	Interest only
Series D		4.08	%		4.08	%		115,000			1/22/2028	Interest only
Series E		4.26	%		4.26	%		160,000			3/22/2030	Interest only
Series F		4.44	%		4.44	%		175,000			3/22/2033	Interest only
Total / weighted average debt					3.84	%		1,930,537
Discount								(2,315	)
Deferred financing costs, net								(9,538	)
Total (3)							$	1,918,684

Notes:

(1) Represents a $164 million mortgage loan bearing interest at 4.09% and a $16 million loan bearing interest at 6.25%.

(2) LIBOR is fixed at 2.1485% under a variable to fixed interest rate swap agreement.

(3) Capitalized interest was $0.5 million for the three months ended September 30, 2018.

Page 21

Third Quarter 2018 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
2018	$	925	$	—	$	925			0.0	%		n/a
2019		3,790		250,000		253,790			13.1	%		2.63	%
2020		3,938		—		3,938			0.2	%		n/a
2021		4,090		—		4,090			0.2	%		n/a
2022		5,628		265,000		270,628			14.0	%		3.35	%
Thereafter		41,744		1,355,422		1,397,166			72.5	%		4.15	%
Total debt	$	60,115	$	1,870,422		1,930,537			100.0	%		3.84	%
Discount						(2,315	)
Deferred financing costs, net						(9,538	)
Total					$	1,918,684

Note:

(1) Assumes no extension options are exercised.

Debt Maturity Profile

Ground Lease Commitments

Year	1350 Broadway		1400 Broadway		111 West 33rd Street		Total
2018	$	27	$	169	$	184	$	380
2019		108		675		735		1,518
2020		108		675		735		1,518
2021		108		675		735		1,518
2022		108		675		735		1,518
Thereafter		2,145		27,675		39,996		69,816
	$	2,604	$	30,544	$	43,120	$	76,268

Page 22

Third Quarter 2018 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 third quarter 2014 acquisition of two option properties following our formation transactions 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: deferred tax asset write-off, loss on early extinguishment of debt and acquisition expenses. The Company presents Core FFO because it considers it an important supplemental measure of its operating performance in that it excludes 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 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, (ii) 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, loss on early extinguishment of debt and loss from derivative financial instruments 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 titled measures and, accordingly, our NOI may not-be comparable to similarly titled measures reported by other companies that do not define the measure exactly as we do.

EBITDA

We compute EBITDA as net income plus interest expense, income taxes and depreciation. 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.

Page 23