10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q 

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2021

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from             to            

Commission File Number: 001-36105

EMPIRE STATE REALTY TRUST, INC.

(Exact name of Registrant as specified in its charter)

Maryland	37-1645259
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

111 West 33rd Street, 12th Floor

New York, New York 10120

(Address of principal executive offices) (Zip Code)

(212) 850-2600

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Securities	Trading Symbol	Exchange on which traded
Class A Common Stock, par value $0.01 per share	ESRT	The New York Stock Exchange
Class B Common Stock, par value $0.01 per share	N/A	N/A

    Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes   ☒    No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒     No   ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definition of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. 

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

As of April 27, 2021, there were 171,931,429 shares of Class A Common Stock, $0.01 par value per share, outstanding and 1,003,441 shares of Class B Common Stock, $0.01 par value per share, outstanding.

	EMPIRE STATE REALTY TRUST, INC.
	FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2021
	TABLE OF CONTENTS	PAGE
PART 1.	FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS
	Condensed Consolidated Balance Sheets as of March 31, 2021 (unaudited) and December 31, 2020	2
	Condensed Consolidated Statements of Operations for the three months ended March 31, 2021 and 2020 (unaudited)	3
	Condensed Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2021 and 2020 (unaudited)	4
	Condensed Consolidated Statements of Stockholders' Equity for the three months ended March 31, 2021 and 2020 (unaudited)	5
	Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2021 and 2020 (unaudited)	6
	Notes to Condensed Consolidated Financial Statements (unaudited)	8
ITEM 2.	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	27
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK	43
ITEM 4.	CONTROLS AND PROCEDURES	44
PART II.	OTHER INFORMATION	44
ITEM 1.	LEGAL PROCEEDINGS	44
ITEM 1A.	RISK FACTORS	44
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	45
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	45
ITEM 4.	MINE SAFETY DISCLOSURES	45
ITEM 5.	OTHER INFORMATION	45
ITEM 6.	EXHIBITS	46
SIGNATURES		47

1

ITEM 1. FINANCIAL STATEMENTS

Empire State Realty Trust, Inc.

Condensed Consolidated Balance Sheets

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

	March 31, 2021		December 31, 2020
ASSETS	(unaudited)
Commercial real estate properties, at cost:
Land	$	201,196	$	201,196
Development costs	8,064		7,966
Building and improvements	2,943,148		2,924,804
	3,152,408		3,133,966
Less: accumulated depreciation	(973,940)		(941,612)
Commercial real estate properties, net	2,178,468		2,192,354
Cash and cash equivalents	567,102		526,714
Restricted cash	40,295		41,225
Tenant and other receivables	16,749		21,541
Deferred rent receivables	228,117		222,508
Prepaid expenses and other assets	50,427		77,182
Deferred costs, net	207,058		203,853
Acquired below-market ground leases, net	342,777		344,735
Right of use assets	29,051		29,104
Goodwill	491,479		491,479
Total assets	$	4,151,523	$	4,150,695
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net	$	775,276	$	775,929
Senior unsecured notes, net	973,214		973,159
Unsecured term loan facilities, net	387,811		387,561
Unsecured revolving credit facility	—		—
Accounts payable and accrued expenses	102,381		103,203
Acquired below-market leases, net	30,112		31,705
Ground lease liabilities	29,051		29,104
Deferred revenue and other liabilities	94,625		88,319
Tenants’ security deposits	27,858		30,408
Total liabilities	2,420,328		2,419,388
Commitments and contingencies
Equity:
Empire State Realty Trust, Inc. stockholders' equity:
Preferred stock, $0.01 par value per share, 50,000,000 shares authorized, none issued or outstanding	—		—
Class A common stock, $0.01 par value per share, 400,000,000 shares authorized, 171,327,270 and 170,555,274 shares issued and outstanding in 2021 and 2020, respectively	1,713		1,705
Class B common stock, $0.01 par value per share, 50,000,000 shares authorized, 1,004,601 and 1,010,130 shares issued and outstanding in 2021 and 2020, respectively	10		10
Additional paid-in capital	1,147,588		1,147,527
Accumulated other comprehensive loss	(26,544)		(28,320)
Retained deficit	(69,272)		(65,673)
Total Empire State Realty Trust, Inc. stockholders' equity	1,053,495		1,055,249
Non-controlling interests in operating partnership	647,760		646,118
Private perpetual preferred units:
Private perpetual preferred units, $13.52 per unit liquidation preference, 4,664,038 issued and outstanding in 2021 and 2020, respectively	21,936		21,936
Private perpetual preferred units, $16.62 per unit liquidation preference, 1,560,360 issued and outstanding in 2021 and 2020	8,004		8,004
Total equity	1,731,195		1,731,307
Total liabilities and equity	$	4,151,523	$	4,150,695

The accompanying notes are an integral part of these consolidated financial statements 

2

Empire State Realty Trust, Inc.

Condensed Consolidated Statements of Operations

(unaudited)

(amounts in thousands, except per share amounts)

	Three Months Ended March 31,
	2021		2020
Revenues:
Rental revenue	$	140,231	$	148,113
Observatory revenue	2,603		19,544
Lease termination fees	1,289		211
Third-party management and other fees	276		346
Other revenue and fees	905		2,010
Total revenues	145,304		170,224
Operating expenses:
Property operating expenses	30,279		41,468
Ground rent expenses	2,331		2,331
General and administrative expenses	13,853		15,951
Observatory expenses	4,588		8,154
Real estate taxes	31,447		29,254
Depreciation and amortization	44,457		46,093
Total operating expenses	126,955		143,251
Total operating income	18,349		26,973
Other income (expense):
Interest income	122		637
Interest expense	(23,554)		(19,618)
Loss on early extinguishment of debt	(214)		(86)
Income (loss) before income taxes	(5,297)		7,906
Income tax benefit	2,106		382
Net income (loss)	(3,191)		8,288
Private perpetual preferred unit distributions	(1,050)		(1,050)
Net (income) loss attributable to non-controlling interests	1,620		(2,743)
Net income (loss) attributable to common stockholders	$	(2,621)	$	4,495
Total weighted average shares:
Basic	171,735		181,741
Diluted	277,881		292,645
Earnings (loss) per share attributable to common stockholders:
Basic	$	(0.02)	$	0.02
Diluted	$	(0.02)	$	0.02
Dividends per share	$	—	$	0.105

The accompanying notes are an integral part of these consolidated financial statements

3

Empire State Realty Trust, Inc.

Condensed Consolidated Statements of Comprehensive Loss

(unaudited)

(amounts in thousands)

	Three Months Ended March 31,
	2021		2020
Net income (loss)	$	(3,191)	$	8,288
Other comprehensive income (loss):
Unrealized gain (loss) on valuation of interest rate swap agreements	59		(17,695)
Less: amount reclassified into interest expense	2,869		796
Other comprehensive income (loss)	2,928		(16,899)
Comprehensive loss	(263)		(8,611)
Net (income) loss attributable to non-controlling interests and private perpetual preferred unitholders	570		(3,793)
Other comprehensive (income) loss attributable to non-controlling interests	(1,114)		6,405
Comprehensive loss attributable to common stockholders	$	(807)	$	(5,999)

The accompanying notes are an integral part of these consolidated financial statements

4

Empire State Realty Trust, Inc.

Condensed Consolidated Statements of Stockholders' Equity

For The Three Months Ended March 31, 2021 and 2020

(unaudited)

(amounts in thousands)

	Number of Class A Common Shares	Class A Common Stock		Number of Class B Common Shares	Class B Common Stock		Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Retained Deficit		Total Stockholders' Equity		Non-controlling Interests		Private Perpetual Preferred Units		Total Equity
Balance at December 31, 2020	170,555	$	1,705	1,010	$	10	$	1,147,527	$	(28,320)	$	(65,673)	$	1,055,249	$	646,118	$	29,940	$	1,731,307
Conversion of operating partnership units and Class B shares to Class A shares	1,071	11		(5)	—		2,689		(38)		—		2,662		(2,662)		—		—
Repurchases of common shares	(383)	(4)		—	—		(2,551)		—		(978)		(3,533)		—		—		(3,533)
Equity compensation:
LTIP units	—	—		—	—		—		—		—		—		4,810		—		4,810
Restricted stock, net of forfeitures	84	1		—	—		(77)		—		—		(76)		—		—		(76)
Dividends and distributions	—	—		—	—		—		—		—		—		—		(1,050)		(1,050)
Net income (loss)	—	—		—	—		—		—		(2,621)		(2,621)		(1,620)		1,050		(3,191)
Other comprehensive income	—	—		—	—		—		1,814		—		1,814		1,114		—		2,928
Balance at March 31, 2021	171,327	$	1,713	1,005	$	10	$	1,147,588	$	(26,544)	$	(69,272)	$	1,053,495	$	647,760	$	29,940	$	1,731,195

	Number of Class A Common Shares	Class A Common Stock		Number of Class B Common Shares	Class B Common Stock		Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings (Deficit)		Total Stockholders' Equity		Non-controlling Interests		Private Perpetual Preferred Units		Total Equity
Balance at December 31, 2019	180,878	$	1,809	1,017	$	10	$	1,232,433	$	(21,496)	$	15,764	$	1,228,520	$	690,242	$	29,151	$	1,947,913
Issuance of private perpetual in exchange for common shares	—	—		—	—		—		—		—		—		(789)		789		—
Conversion of operating partnership units and Class B shares to Class A shares	1,660	17		(2)	—		7,661		(116)		—		7,562		(7,562)		—		—
Repurchases of common shares	(6,571)	(65)		—	—		(44,363)		—		(18,238)		(62,666)		—		—		(62,666)
Equity compensation:
LTIP units	—	—		—	—		—		—		—		—		5,737		—		5,737
Restricted stock, net of forfeitures	146	—		—	—		154		—		—		154		—		—		154
Dividends and distributions	—	—		—	—		—		—		(18,987)		(18,987)		(12,614)		(1,050)		(32,651)
Net income	—	—		—	—		—		—		4,495		4,495		2,743		1,050		8,288
Other comprehensive loss	—	—		—	—		—		(10,494)		—		(10,494)		(6,405)		—		(16,899)
Balance at March 31, 2020	176,113	$	1,761	1,015	$	10	$	1,195,885	$	(32,106)	$	(16,966)	$	1,148,584	$	671,352	$	29,940	$	1,849,876

The accompanying notes are an integral part of these consolidated financial statements

5

Empire State Realty Trust, Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited)

(amounts in thousands)

	Three Months Ended March 31,
	2021		2020
Cash Flows From Operating Activities
Net income (loss)	$	(3,191)	$	8,288
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	44,457		46,093
Amortization of non-cash items within interest expense	2,733		1,052
Amortization of acquired above- and below-market leases, net	(654)		(908)
Amortization of acquired below-market ground leases	1,958		1,958
Straight-lining of rental revenue	(6,347)		(8,193)
Equity based compensation	4,734		5,891
Loss on early extinguishment of debt	214		86
Increase (decrease) in cash flows due to changes in operating assets and liabilities:
Security deposits	(2,550)		(17)
Tenant and other receivables	4,792		2,874
Deferred leasing costs	(3,243)		(4,118)
Prepaid expenses and other assets	26,755		24,869
Accounts payable and accrued expenses	(3,302)		(5,261)
Deferred revenue and other liabilities	7,044		(7,840)
Net cash provided by operating activities	73,400		64,774
Cash Flows From Investing Activities
Development costs	(98)		(811)
Additions to building and improvements	(20,714)		(39,799)
Net cash used in investing activities	(20,812)		(40,610)

The accompanying notes are an integral part of these consolidated financial statements

6

Empire State Realty Trust, Inc.

Condensed Consolidated Statements of Cash Flows (continued)

(unaudited)

(amounts in thousands)

	Three Months Ended March 31,
	2021		2020
Cash Flows From Financing Activities
Repayment of mortgage notes payable	(1,008)		(970)
Proceeds from unsecured senior notes	—		175,000
Proceeds from unsecured term loan	—		175,000
Repayment of unsecured term loan	—		(50,000)
Proceeds from unsecured revolving credit facility	—		550,000
Deferred financing costs	(7,539)		(3,610)
Repurchases of common shares	(3,533)		(62,666)
Private perpetual preferred unit distributions	(1,050)		(1,050)
Dividends paid to common stockholders	—		(18,987)
Distributions paid to non-controlling interests in the operating partnership	—		(12,614)
Net cash (used in) provided by financing activities	(13,130)		750,103
Net increase in cash and cash equivalents and restricted cash	39,458		774,267
Cash and cash equivalents and restricted cash—beginning of period	567,939		271,597
Cash and cash equivalents and restricted cash—end of period	$	607,397	$	1,045,864
Reconciliation of Cash and Cash Equivalents and Restricted Cash:
Cash and cash equivalents at beginning of period	$	526,714	$	233,946
Restricted cash at beginning of period	41,225		37,651
Cash and cash equivalents and restricted cash at beginning of period	$	567,939	$	271,597
Cash and cash equivalents at end of period	$	567,102	$	1,008,983
Restricted cash at end of period	40,295		36,881
Cash and cash equivalents and restricted cash at end of period	$	607,397	$	1,045,864
Supplemental disclosures of cash flow information:
Cash paid for interest	$	19,239	$	17,081
Cash paid for income taxes	$	13	$	898
Non-cash investing and financing activities:
Building and improvements included in accounts payable and accrued expenses	$	60,536	$	78,107
Write-off of fully depreciated assets	4,853		13,932
Derivative instruments at fair values included in accounts payable and accrued expenses	7,450		30,387
Conversion of operating partnership units and Class B shares to Class A shares	2,662		7,562
Issuance of Series 2019 private perpetual preferred in exchange for common shares	—		789

The accompanying notes are an integral part of these consolidated financial statements

7

Empire State Realty Trust, Inc.

Notes to Condensed Consolidated Financial Statements

(unaudited)

1. Description of Business and Organization

    As used in these condensed consolidated financial statements, unless the context otherwise requires, “we,” “us,” “our,” the “company,” and "ESRT" mean Empire State Realty Trust, Inc. and its consolidated subsidiaries.

    We are a self-administered and self-managed 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.

    As of March 31, 2021, our total portfolio contained 10.1 million rentable square feet of office and retail space. We owned 14 office properties (including three long-term ground leasehold interests) encompassing approximately 9.4 million rentable square feet of office space. Nine of these properties are located in the midtown Manhattan market and aggregate approximately 7.6 million rentable square feet of office space, including the Empire State Building. Our Manhattan office properties also contain an aggregate of approximately 0.5 million rentable square feet of retail space on their ground floor and/or contiguous levels. Our remaining five office properties are located in Fairfield County, Connecticut and Westchester County, New York, encompassing in the aggregate approximately 1.8 million rentable square feet. The majority of square footage for these five properties is located in densely populated metropolitan communities with immediate access to mass transportation. Additionally, we have entitled land at the Stamford Transportation Center in Stamford, Connecticut, adjacent to one of our office properties, that will support the development of an approximately 0.4 million rentable square foot office building and garage. As of March 31, 2021, our portfolio included four standalone retail properties located in Manhattan and two standalone retail properties located in the city center of Westport, Connecticut, encompassing approximately 0.2 million rentable square feet in the aggregate.

     We were organized as a Maryland corporation on July 29, 2011 and commenced operations upon completion of our initial public offering and related formation transactions on October 7, 2013. Our operating partnership, Empire State Realty OP, L.P. (the "Operating Partnership"), holds substantially all of our assets and conducts substantially all of our business. As of March 31, 2021, we owned approximately 60.3% of the aggregate operating partnership units in the Operating Partnership. We, as the sole general partner in the Operating Partnership, have responsibility and discretion in the management and control of the Operating Partnership, and the limited partners in the Operating Partnership, in such capacity, have no authority to transact business for, or participate in the management activities of, the Operating Partnership. Accordingly, the Operating Partnership has been consolidated by us. We elected to be taxed as a REIT and operate in a manner that we believe allows us to qualify as a REIT for federal income tax purposes commencing with our taxable year ended December 31, 2013.

2. Summary of Significant Accounting Policies

    There have been no material changes to the summary of significant accounting policies included in the section entitled "Summary of Significant Accounting Policies" in our December 31, 2020 Annual Report on Form 10-K.

Basis of Quarterly Presentation and Principles of Consolidation

    The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), for interim financial information, and with the rules and regulations of the Securities and Exchange Commission (the "SEC"). Accordingly, certain information and footnote disclosures required by GAAP for complete financial statements have been condensed or omitted in accordance with such rules and regulations. In the opinion of management, all adjustments and eliminations (including intercompany balances and transactions), consisting of normal recurring adjustments, considered necessary for the fair presentation of the financial statements have been included.

    The results of operations for the periods presented are not necessarily indicative of the results that may be expected for the corresponding full years. These financial statements should be read in conjunction with the financial statements and accompanying notes included in the financial statements for the year ended December 31, 2020 contained in our Annual Report on Form 10-K. We do not consider our business to be subject to material seasonal fluctuations, except that our observatory business is subject to tourism seasonality and currently impacted by the Coronavirus 19 ("COVID-19") pandemic. Historically, prior to the outbreak of the COVID-19 pandemic, approximately 16.0% to 18.0% of our annual observatory revenue was

8

realized in the first quarter, 26.0% to 28.0% was realized in the second quarter, 31.0% to 33.0% was realized in the third quarter and 23.0% to 25.0% was realized in the fourth quarter.

    We consolidate entities in which we have a controlling financial interest.  In determining whether we have a controlling financial interest in a partially owned entity and the requirement to consolidate the accounts of that entity, we consider factors such as ownership interest, board representation, management representation, authority to make decisions, and contractual and substantive participating rights of the partners/members.  For variable interest entities ("VIE"), we consolidate the entity if we are deemed to have a variable interest in the entity and through that interest we are deemed the primary beneficiary. The primary beneficiary of a VIE is the entity that has (i) the power to direct the activities that most significantly impact the entity's economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE. The primary beneficiary is required to consolidate the VIE. The Operating Partnership is a variable interest entity of our company, Empire State Realty Trust, Inc.  As the Operating Partnership is already consolidated in the financial statements of Empire State Realty Trust, Inc., the identification of this entity as a variable interest entity has no impact on our consolidated financial statements.

    We will assess the accounting treatment for each investment we may have in the future. This assessment will include a review of each entity’s organizational agreement to determine which party has what rights and whether those rights are protective or participating. For all VIEs, we will review such agreements in order to determine which party has the power to direct the activities that most significantly impact the entity’s economic performance and benefit. In situations where we or our partner could approve, among other things, the annual budget, or leases that cover more than a nominal amount of space relative to the total rentable space at each property, we would not consolidate the investment as we consider these to be substantive participation rights that result in shared power of the activities that would most significantly impact the performance and benefit of such joint venture investment.

    A non-controlling interest in a consolidated subsidiary is defined as the portion of the equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. Non-controlling interests are required to be presented as a separate component of equity in the condensed consolidated balance sheets and in the condensed consolidated statements of operations by requiring earnings and other comprehensive income to be attributed to controlling and non-controlling interests.

Accounting Estimates

    The preparation of the condensed consolidated financial statements in accordance with GAAP requires management to use estimates and assumptions that in certain circumstances affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Significant items subject to such estimates and assumptions include allocation of the purchase price of acquired real estate properties among tangible and intangible assets, determination of the useful life of real estate properties and other long-lived assets, valuation and impairment analysis of commercial real estate properties, right of use assets and other long-lived and indefinite lived assets, estimate of tenant expense reimbursements, valuation of the allowance for doubtful accounts, and valuation of derivative instruments, ground lease liabilities, senior unsecured notes, mortgage notes payable, unsecured term loan and revolving credit facilities, and equity based compensation. These estimates are prepared using management’s best judgment, after considering past, current, and expected events and economic conditions. Actual results could differ from those estimates.

Recently Issued or Adopted Accounting Standards

    During April 2020, the Financial Accounting Standards Board ("FASB") staff issued a question and answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of the COVID-19 pandemic. Under existing lease guidance, the entity would have to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant, which would be accounted for under the lease modification framework, or if a lease concession was under the enforceable rights and obligations that existed in the original lease, which would be accounted for outside the lease modification framework. The Lease Modification Q&A provides entities with the option to elect to account for lease concessions as though the enforceable rights and obligations existed in the original lease. This election is only available when total cash flows resulting from the modified lease are substantially similar to the cash flows in the original lease.

    During March 2020, the FASB issued Accounting Standards Update ("ASU") 2020-04, Reference Rate Reform (Topic 848). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. During the first quarter 2020, we elected to apply the hedge accounting expedients related to probability and the

9

assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. We continue to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.     

3. Deferred Costs, Acquired Lease Intangibles and Goodwill

    Deferred costs, net, consisted of the following as of March 31, 2021 and December 31, 2020 (amounts in thousands):  

	March 31, 2021		December 31, 2020
Leasing costs	$	203,730	$	203,905
Acquired in-place lease value and deferred leasing costs	180,131		181,336
Acquired above-market leases	40,254		40,398
	424,115		425,639
Less: accumulated amortization	(225,967)		(223,918)
Total deferred costs, net, excluding net deferred financing costs	$	198,148	$	201,721

    At March 31, 2021 and December 31, 2020, $8.9 million and $2.1 million, respectively, of net deferred financing costs associated with the unsecured revolving credit facility was included in deferred costs, net on the condensed consolidated balance sheet.

    Amortization expense related to deferred leasing costs and acquired deferred leasing costs was $5.6 million and $5.9 million for the three months ended March 31, 2021 and 2020, respectively. Amortization expense related to acquired lease intangibles was $1.7 million and $2.0 million for the three months ended March 31, 2021 and 2020, respectively.

    Amortizing acquired intangible assets and liabilities consisted of the following as of March 31, 2021 and December 31, 2020 (amounts in thousands):

	March 31, 2021		December 31, 2020
Acquired below-market ground leases	$	396,916	$	396,916
Less: accumulated amortization	(54,139)		(52,181)
Acquired below-market ground leases, net	$	342,777	$	344,735

	March 31, 2021		December 31, 2020
Acquired below-market leases	$	(77,686)	$	(78,451)
Less: accumulated amortization	47,574		46,746
Acquired below-market leases, net	$	(30,112)	$	(31,705)

    Rental revenue related to the amortization of below-market leases, net of above-market leases, was $0.7 million and $0.9 million for the three months ended March 31, 2021 and 2020, respectively.

     As of March 31, 2021, we had goodwill of $491.5 million. Goodwill was allocated $227.5 million to the observatory reportable segment and $264.0 million to the real estate reportable segment.

    In compliance with the requirements of authorities, we closed the Empire State Building Observatory on March 16, 2020 due to the COVID-19 pandemic and it remained closed until the 86th floor observation deck was reopened on July 20, 2020. The 102nd observation deck was reopened on August 24, 2020. The closure of our Observatory and subsequent reopening under international, national, and local travel restrictions and quarantines caused us during the quarter to choose to perform an impairment test related to goodwill. We engaged a third-party valuation consulting firm to perform the valuation process. The analysis used a combination of the discounted cash flow method (a form of the income approach) utilizing Level 3 unobservable inputs and the guideline company method (a form of the market approach). Significant assumptions under the former included revenue and cost projections, weighted average cost of capital, long-term growth rate and income tax considerations while the latter included guideline company enterprise values, revenue multiples and control premium rates. Our methodology to review goodwill impairment, which included a significant amount of judgment and estimates, provided a reasonable basis to determine whether impairment had occurred. Based upon the results of the goodwill impairment test of the standalone Observatory reporting unit, which is after the intercompany rent expense paid to the Real Estate reporting unit, we

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determined that the fair value of the Observatory reporting unit exceeded its carrying value by less than 10.0%.  Many of the factors employed in determining whether or not goodwill is impaired are outside of our control and it is reasonably likely that assumptions and estimates will change in future periods.  We will continue to assess the impairment of the Observatory reporting unit goodwill going forward and that continued assessment may again utilize a third-party valuation consulting firm.

4. Debt

    Debt consisted of the following as of March 31, 2021 and December 31, 2020 (amounts in thousands):

	Principal Balance				As of March 31, 2021
	March 31, 2021		December 31, 2020		Stated Rate		Effective Rate(1)		Maturity Date(2)
Mortgage debt collateralized by:
Fixed rate mortgage debt
Metro Center	$	86,803	$	87,382	3.59	%	3.68	%	11/5/2024
10 Union Square	50,000		50,000		3.70	%	3.97	%	4/1/2026
1542 Third Avenue	30,000		30,000		4.29	%	4.53	%	5/1/2027
First Stamford Place(3)	180,000		180,000		4.28	%	4.71	%	7/1/2027
1010 Third Avenue and 77 West 55th Street	37,278		37,477		4.01	%	4.23	%	1/5/2028
250 West 57th Street	180,000		180,000		2.83	%	3.19	%	12/1/2030
10 Bank Street	31,795		32,025		4.23	%	4.36	%	6/1/2032
383 Main Avenue	30,000		30,000		4.44	%	4.55	%	6/30/2032
1333 Broadway	160,000		160,000		4.21	%	4.29	%	2/5/2033
Total mortgage debt	785,876		786,884
Senior unsecured notes:(4)
Series A	100,000		100,000		3.93	%	3.96	%	3/27/2025
Series B	125,000		125,000		4.09	%	4.12	%	3/27/2027
Series C	125,000		125,000		4.18	%	4.21	%	3/27/2030
Series D	115,000		115,000		4.08	%	4.11	%	1/22/2028
Series E	160,000		160,000		4.26	%	4.27	%	3/22/2030
Series F	175,000		175,000		4.44	%	4.45	%	3/22/2033
Series G	100,000		100,000		3.61	%	4.89	%	3/17/2032
Series H	75,000		75,000		3.73	%	5.00	%	3/17/2035
Unsecured term loan facility (4)	215,000		215,000		LIBOR plus 1.20%		3.56	%	3/19/2025
Unsecured revolving credit facility (4)	—		—		LIBOR plus 1.30%		—		3/31/2025
Unsecured term loan facility (4)	175,000		175,000		LIBOR plus 1.50%		3.60	%	12/31/2026
Total principal	2,150,876		2,151,884
Deferred financing costs, net	(14,575)		(15,235)
Total	$	2,136,301	$	2,136,649

______________

(1)The effective rate is the yield as of March 31, 2021 and includes the stated interest rate, deferred financing cost amortization and interest associated with variable to fixed interest rate swap agreements.

(2)Pre-payment is generally allowed for each loan upon payment of a customary pre-payment penalty.

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

(4)At March 31, 2021, we were in compliance with all debt covenants.

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Principal Payments

    Aggregate required principal payments at March 31, 2021 are as follows (amounts in thousands):

Year	Amortization		Maturities		Total
2021	$	3,082	$	—	$	3,082
2022	5,628		—		5,628
2023	7,876		—		7,876
2024	7,958		77,675		85,633
2025	5,826		315,000		320,826
Thereafter	20,084		1,707,747		1,727,831
Total	$	50,454	$	2,100,422	$	2,150,876

Deferred Financing Costs

    Deferred financing costs, net, consisted of the following at March 31, 2021 and December 31, 2020 (amounts in thousands):

	March 31, 2021		December 31, 2020
Financing costs	$	42,689	$	35,365
Less: accumulated amortization	(19,202)		(17,998)
Total deferred financing costs, net	$	23,487	$	17,367

    Amortization expense related to deferred financing costs was $1.2 million and $0.9 million for the three months ended March 31, 2021 and 2020, respectively.

Unsecured Revolving Credit and Term Loan Facilities

    On March 31, 2021, through our Operating Partnership, we entered into a second amendment to an existing credit agreement ("Amended Credit Agreement") that will govern an amended senior unsecured credit facility (the “Credit Facility”) with Bank of America, N.A., as administrative agent, and Bank of America, Wells Fargo Bank, National Association, Capital One, National Association and JPMorgan Chase Bank, N.A., as co-syndication agents, and the lenders and the letter of credit issuers party thereto. The Amended Credit Agreement amends the amended and restated credit agreement dated August 29, 2017, as amended, by and among the parties named therein.

    The Credit Facility is in the initial maximum principal amount of up to $1.065 billion, which consists of a $850.0 million revolving credit facility and a $215.0 million term loan facility. We borrowed the term loan facility in full in August 2017. We may request the Credit Facility be increased through one or more increases in the revolving credit facility or one or more increases in the term loan facility or the addition of new pari passu term loan tranches, for a maximum aggregate principal amount not to exceed $1.50 billion. The Credit Facility will be used for our working capital needs and for other general corporate purposes. As of March 31, 2021, we had no borrowings under the revolving credit facility and $215.0 million under the term loan facility.

    The revolving credit facility matures on March 31, 2025. We have the option to extend the initial term for up to two additional 6-month periods, subject to certain conditions, including the payment of an extension fee equal to 0.0625% and 0.075% of the then outstanding commitments under the revolving credit facility on the first and the second extensions, respectively. The term loan facility matures on March 19, 2025. We may prepay the loans under the Credit Facility at any time in whole or in part, subject to reimbursement of the lenders’ breakage and redeployment costs in the case of prepayment of Eurodollar Rate borrowings.

    On March 19, 2020, we entered into a senior unsecured term loan facility (the “Term Loan Facility”) with Wells Fargo Bank, National Association, as administrative agent, Wells Fargo Securities, LLC as sole bookrunner, Wells Fargo Securities, LLC, Capital One, National Association, U.S. Bank National Association and SunTrust Robinson Humphrey, Inc. as Joint Lead

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Arrangers, Capital One, National Association, as syndication agent, U.S. Bank National Association and Truist Bank, as documentation agents, and the lenders party thereto.

    The Term Loan Facility is in the original principal amount of $175 million which we borrowed in full at closing. We may request the Term Loan Facility be increased through one or more increases or the addition of new pari passu term loan tranches, for a maximum aggregate principal amount not to exceed $225 million. As of March 31, 2021, our borrowings amounted to $175.0 million under the Term Loan Facility.

    The Term Loan Facility matures on December 31, 2026. We may prepay loans under the Term Loan Facility at any time in whole or in part, subject to reimbursement of the lenders’ breakage and redeployment costs in the case of prepayment of Eurodollar rate borrowings and, if the prepayment occurs on or before December 31, 2021, a prepayment fee. If the prepayment occurs after December 31, 2020 but on or prior to December 31, 2021, the prepayment fee is equal to 1.0% of the principal amount prepaid.

    The terms of both the Credit Facility and the Term Loan Facility include customary covenants, including limitations on liens, investment, distributions, debt, fundamental changes, and transactions with affiliates and require certain customary financial reports. It also requires compliance with financial ratios including a maximum leverage ratio, a maximum secured leverage ratio, a minimum fixed charge coverage ratio, a minimum unencumbered interest coverage ratio, and a maximum unsecured leverage ratio. The agreement also contains customary events of default (subject in certain cases to specified cure periods), including but not limited to non-payment, breach of covenants, representations or warranties, cross defaults, bankruptcy or other insolvency events, judgments, ERISA events, invalidity of loan documents, loss of real estate investment trust qualification, and occurrence of a change of control. As of March 31, 2021, we were in compliance with the covenants under the Credit Facility and the Term Loan Facility.

Senior Unsecured Notes

    On March 17, 2020, through the Operating Partnership, we entered into an agreement to issue and sell an aggregate $175 million of senior unsecured notes, consisting of (a) $100 million aggregate principal amount of 3.61% Series G Senior Notes due March 17, 2032 (the “Series G Notes”) and (b) $75 million aggregate principal amount of 3.73% Series H Senior Notes due March 17, 2035 (the “Series H Notes”). The issue price for the Series G and H Notes was 100% of the aggregate principal amount thereof.

    The terms of the Series G and H Notes agreement include customary covenants, including limitations on liens, investment, distributions, debt, fundamental changes, and transactions with affiliates and require certain customary financial reports. It also requires compliance with financial ratios including a maximum leverage ratio, a maximum secured leverage ratio, a minimum fixed charge coverage ratio, a minimum unencumbered interest coverage ratio, and a maximum unsecured leverage ratio. The agreement also contains customary events of default (subject in certain cases to specified cure periods), including but not limited to non-payment, breach of covenants, representations or warranties, cross defaults, bankruptcy or other insolvency events, judgments, ERISA events, the occurrence of certain change of control transactions and loss of real estate investment trust qualification. As of March 31, 2021, we were in compliance with the covenants under the outstanding senior unsecured notes.

5. Accounts Payable and Accrued Expenses

    Accounts payable and accrued expenses consisted of the following as of March 31, 2021 and December 31, 2020 (amounts in thousands):

	March 31, 2021		December 31, 2020
Accrued capital expenditures	$	60,536	$	58,057
Accounts payable and accrued expenses	30,032		32,309
Interest rate swap agreements liability	7,450		8,849
Accrued interest payable	3,436		3,219
Due to affiliated companies	927		769
Total accounts payable and accrued expenses	$	102,381	$	103,203

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6. Financial Instruments and Fair Values

Derivative Financial Instruments

    We use derivative financial instruments primarily to manage interest rate risk and such derivatives are not considered speculative. These derivative instruments are typically in the form of interest rate swap and forward agreements and the primary objective is to minimize interest rate risks associated with investing and financing activities. The counterparties of these arrangements are major financial institutions with which we may also have other financial relationships. We are exposed to credit risk in the event of non-performance by these counterparties; however, we currently do not anticipate that any of the counterparties will fail to meet their obligations.

    We have agreements with our derivative counterparties that contain a provision where if we either default or are capable of being declared in default on any of our indebtedness, then we could also be declared in default on our derivative obligations. As of March 31, 2021, the fair value of the derivative in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to the agreement was $7.5 million. If we had breached any of these provisions at March 31, 2021, we could have been required to settle our obligation under the agreement at its termination value of $7.5 million.

    As of March 31, 2021 and December 31, 2020, we had an interest rate LIBOR swap with an aggregate notional value of $265.0 million and $265.0 million, respectively. The notional value does not represent exposure to credit, interest rate or market risks. As of March 31, 2021 and December 31, 2020, the fair value of our derivative instrument amounted to $(7.5) million and $(8.8) million, respectively, which is included in accounts payable and accrued expenses on the condensed consolidated balance sheets. This interest rate swap has been designated as a cash flow hedge and hedges the variability in future cash flows associated with our existing variable-rate term loan facilities.

    As of March 31, 2021 and 2020, our cash flow hedge is deemed highly effective and a net unrealized gain (loss) of $2.9 million and $(16.9) million for the three months ended March 31, 2021 and 2020, respectively, relating to both active and terminated hedges of interest rate risk, are reflected in the condensed consolidated statements of comprehensive income. Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on the debt. We estimate that $(11.5) million net loss of the current balance held in accumulated other comprehensive income (loss) will be reclassified into interest expense within the next 12 months.

    The table below summarizes the terms of agreements and the fair values of our derivative financial instruments as of March 31, 2021 and December 31, 2020 (dollar amounts in thousands):     

							March 31, 2021				December 31, 2020
Derivative	Notional Amount		Receive Rate	Pay Rate	Effective Date	Expiration Date	Asset		Liability		Asset		Liability
Interest rate swap	$	265,000	1 Month LIBOR	2.1485%	August 31, 2017	August 24, 2022	$	—	$	(7,450)	$	—	$	(8,849)

    The table below shows the effect of our derivative financial instruments designated as cash flow hedges on accumulated other comprehensive income (loss) for the three months ended March 31, 2021 and 2020 (amounts in thousands):    

	Three Months Ended
Effects of Cash Flow Hedges	March 31, 2021		March 31, 2020
Amount of gain (loss) recognized in other comprehensive income (loss)	$	59	$	(17,695)
Amount of gain (loss) reclassified from accumulated other comprehensive (loss) into interest expense	(2,869)		(796)

    The table below shows the effect of our derivative financial instruments designated as cash flow hedges on the condensed consolidated statements of operations for the three months ended March 31, 2021 and 2020 (amounts in thousands):

	Three Months Ended
Effects of Cash Flow Hedges	March 31, 2021		March 31, 2020
Total interest (expense) presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded	$	(23,554)	$	(19,618)
Amount of gain (loss) reclassified from accumulated other comprehensive (loss) into interest expense	(2,869)		(796)

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Fair Valuation

    The estimated fair values at March 31, 2021 and December 31, 2020 were determined by management, using available market information and appropriate valuation methodologies. Considerable judgment is necessary to interpret market data and develop estimated fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts we could realize on disposition of the financial instruments. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

    The fair value of derivative instruments is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. Although the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by ourselves and our counterparties. The impact of such credit valuation adjustments, determined based on the fair value of each individual contract, was not significant to the overall valuation. As a result, all of our derivatives were classified as Level 2 of the fair value hierarchy.

    The fair value of our mortgage notes payable, senior unsecured notes - Series A, B, C, D, E, F, G and H, unsecured term loan facilities, unsecured revolving credit facility and ground lease liabilities which are determined using Level 3 inputs, are estimated by discounting the future cash flows using current interest rates at which similar borrowings could be made to us.

    The following tables summarize the carrying and estimated fair values of our financial instruments as of March 31, 2021 and December 31, 2020 (amounts in thousands):

	March 31, 2021
			Estimated Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Interest rate swap included in accounts payable and accrued expenses	$	7,450	$	7,450	$	—	$	7,450	$	—
Mortgage notes payable	775,276		772,147		—		—		772,147
Senior unsecured notes - Series A, B, C, D, E, F, G and H	973,214		986,839		—		—		986,839
Unsecured term loan facilities	387,811		390,000		—		—		390,000

    

	December 31, 2020
			Estimated Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Interest rate swap included in accounts payable and accrued expenses	$	8,849	$	8,849	$	—	$	8,849	$	—
Mortgage notes payable	775,929		808,294		—		—		808,294
Senior unsecured notes - Series A, B, C, D, E, F, G and H	973,159		1,039,857		—		—		1,039,857
Unsecured term loan facilities	387,561		390,000		—		—		390,000

    Disclosure about the fair value of financial instruments is based on pertinent information available to us as of March 31, 2021 and December 31, 2020. Although we are not aware of any factors that would significantly affect the reasonable fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since that date and current estimates of fair value may differ significantly from the amounts presented herein.

7. Leases

Lessor    

    We lease various spaces to tenants over terms ranging from one to 21 years. Certain leases have renewal options for additional terms. The leases provide for base monthly rentals and reimbursements for real estate taxes, escalations linked to the consumer price index or common area maintenance known as operating expense escalation. Operating expense reimbursements are reflected in our March 31, 2021 and 2020 condensed consolidated statements of operations as rental revenue.

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Rental revenue includes fixed and variable payments. Fixed payments primarily relate to base rent and variable payments primarily relate to tenant expense reimbursements for certain property operating costs. The components of rental revenue for the three months ended March 31, 2021 and 2020 are as follows (amounts in thousands):

	Three Months Ended
Rental revenue	March 31, 2021		March 31, 2020
Fixed payments	$	125,773	$	130,514
Variable payments	14,458		17,599
Total rental revenue	$	140,231	$	148,113

As of March 31, 2021, we were entitled to the following future contractual minimum lease payments (excluding operating expense reimbursements) on non-cancellable operating leases to be received which expire on various dates through 2038 (amounts in thousands):

Remainder of 2021	$	369,719
2022	490,994
2023	471,638
2024	435,036
2025	396,144
Thereafter	1,859,648
	$	4,023,179

The above future minimum lease payments exclude tenant recoveries, amortization of deferred rent receivables and the net accretion of above-below-market lease intangibles. Some leases are subject to termination options generally upon payment of a termination fee. The preceding table is prepared assuming such options are not exercised.

Lessee

    We determine if an arrangement is a lease at inception. Our operating lease agreements relate to three ground lease assets and are reflected in right-of-use assets of $29.1 million and lease liabilities of $29.1 million in our consolidated balance sheet as of March 31, 2021. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Variable lease payments are excluded from the right-of-use assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred.

    We make payments under ground leases related to three of our properties. The ground leases are due to expire between the years 2050 and 2077, inclusive of extension options, and have no variable payments or residual value guarantees. As our leases do not provide an implicit rate, we determined our incremental borrowing rate based on information available at the date of adoption of ASU No. 2016-02, Leases (Topic 842), in determining the present value of lease payments. The weighted average incremental borrowing rate used to calculate the right-of-use assets and lease liabilities as of March 31, 2021 was 4.5%. Rent expense for lease payments related to our operating leases is recognized on a straight-line basis over the non-cancellable term of the leases. The weighted average remaining lease term as of March 31, 2021 was 49.1 years.

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    As of March 31, 2021, the following table summarizes our future minimum lease payments discounted by our incremental borrowing rates to calculate the lease liabilities of our leases (amounts in thousands):

Remainder of 2021	$	1,139
2022	1,518
2023	1,518
2024	1,518
2025	1,518
Thereafter	65,262
Total undiscounted cash flows	72,473
Present value discount	(43,422)
Ground lease liabilities	$	29,051

8. Commitments and Contingencies

Legal Proceedings

    Except as described below, as of March 31, 2021, we were not involved in any material litigation, nor, to our knowledge, was any material litigation threatened against us or our properties, other than routine litigation arising in the ordinary course of business such as disputes with tenants. We believe that the costs and related liabilities, if any, which may result from such actions will not materially affect our condensed consolidated financial position, operating results or liquidity.

    As previously disclosed, in October 2014, 12 former investors (the "Claimants") in Empire State Building Associates L.L.C. (“ESBA”), which prior to the initial public offering of our company (the "Offering"), owned the fee title to the Empire State Building, filed an arbitration with the American Arbitration Association against Peter L. Malkin, Anthony E. Malkin, Thomas N. Keltner, Jr., and our subsidiary ESRT MH Holdings LLC, the former supervisor of ESBA (the "Respondents"). The statement of claim (also filed later in federal court in New York for the expressed purpose of tolling the statute of limitations) alleges breach of fiduciary duty and related claims in connection with the Offering and formation transactions and seeks monetary damages and declaratory relief. Claimants had opted out of a prior class action bringing similar claims that was settled with court approval. Respondents filed an answer and counterclaims. In March 2015, the federal court action was stayed on consent of all parties pending the arbitration. Arbitration hearings started in May 2016 and concluded in August 2018. On August 26, 2020, the arbitration panel issued an award that denied all Claimants’ claims with one exception, on which it awarded Claimants approximately $1.2 million, inclusive of seven years of interest through October 2, 2020. This amount was recorded as an IPO litigation expense in the consolidated statement of operations for the year ended December 31, 2020.

Respondents believe that such award in favor of the Claimants is entirely without merit, and have sought vacatur of that portion of the award. In addition, certain of the Claimants in the federal court action sought to pursue claims in that case against Respondents. Respondents believe that any such claims are meritless. The magistrate judge assigned to the action has issued a Report and Recommendation rejecting Claimants’ claims; the district judge will decide whether to adopt the Report and Recommendation.

     Pursuant to indemnification agreements which were made with our directors, executive officers and chairman emeritus as part of our formation transactions, Anthony E. Malkin, Peter L. Malkin and Thomas N. Keltner, Jr. have defense and indemnity rights from us with respect to this arbitration.

Unfunded Capital Expenditures

    At March 31, 2021, we estimate that we will incur approximately $99.3 million of capital expenditures (including tenant improvements and leasing commissions) on our properties pursuant to existing lease agreements. We expect to fund these capital expenditures with operating cash flow, additional property level mortgage financings, our unsecured credit facility, cash on hand and other borrowings. Future property acquisitions may require substantial capital investments for refurbishment and leasing costs. We expect that these financing requirements will be met in a similar fashion.

Concentration of Credit Risk

    Financial instruments that subject us to credit risk consist primarily of cash and cash equivalents, restricted cash, short-term investments, tenant and other receivables and deferred rent receivables. At March 31, 2021, we held on deposit at various

17

major financial institutions cash and cash equivalents and restricted cash balances in excess of amounts insured by the Federal Deposit Insurance Corporation.

Asset Retirement Obligations

    We are required to accrue costs that we are legally obligated to incur on retirement of our properties which result from acquisition, construction, development and/or normal operation of such properties. Retirement includes sale, abandonment or disposal of a property. Under that standard, a conditional asset retirement obligation represents a legal obligation to perform an asset retirement activity in which the timing and/or method of settlement is conditional on a future event that may or may not be within a company’s control and a liability for a conditional asset retirement obligation must be recorded if the fair value of the obligation can be reasonably estimated. Environmental site assessments and investigations have identified asbestos or asbestos-containing building materials in certain of our properties. As of March 31, 2021, management has no plans to remove or alter these properties in a manner that would trigger federal and other applicable regulations for asbestos removal, and accordingly, the obligations to remove the asbestos or asbestos-containing building materials from these properties have indeterminable settlement dates. As such, we are unable to reasonably estimate the fair value of the associated conditional asset retirement obligation. However, ongoing asbestos abatement, maintenance programs and other required documentation are carried out as required and related costs are expensed as incurred.

Other Environmental Matters

    Certain of our properties have been inspected for soil contamination due to pollutants, which may have occurred prior to our ownership of these properties or subsequently in connection with its development and/or its use. Required remediation to such properties has been completed, and as of March 31, 2021, management believes that there are no obligations related to environmental remediation other than maintaining the affected sites in conformity with the relevant authority’s mandates and filing the required documents. All such maintenance costs are expensed as incurred. We expect that resolution of the environmental matters relating to the above will not have a material impact on our business, assets, consolidated financial condition, results of operations or liquidity. However, we cannot be certain that we have identified all environmental liabilities at our properties, that all necessary remediation actions have been or will be undertaken at our properties or that we will be indemnified, in full or at all, in the event that such environmental liabilities arise.

Insurance Coverage

    We carry insurance coverage on our properties of types and in amounts with deductibles that we believe are in line with coverage customarily obtained by owners of similar properties.

9. Equity

Shares and Units

    An operating partnership unit of the Operating Partnership ("OP Unit") and a share of our common stock have essentially the same economic characteristics as they receive the same per unit profit distributions of the Operating Partnership. On the one-year anniversary of issuance, an OP Unit may be tendered for redemption for cash; however, we have sole and absolute discretion, and sufficient authorized common stock, to exchange OP Units for shares of common stock on a one-for-one basis instead of cash.

    On May 16, 2019, the Empire State Realty Trust, Inc. Empire State Realty OP, L.P. 2019 Equity Incentive Plan (“2019 Plan”) was approved by our shareholders.  The 2019 Plan provides for grants to directors, employees and consultants of our company and operating partnership, including options, restricted stock, restricted stock units, stock appreciation rights, performance awards, dividend equivalents and other equity-based awards.  An aggregate of approximately 11.0 million shares of our common stock are authorized for issuance under awards granted pursuant to the 2019 Plan. We will not issue any new equity awards under the First Amended and Restated Empire State Realty Trust, Inc. and Empire State Realty OP, L.P. 2013 Equity Incentive Plan ("2013 Plan", and collectively with the 2019 Plan, "the Plans"). The shares of Class A common stock underlying any awards under the 2019 Plan and the 2013 Plan that are forfeited, canceled or otherwise terminated, other than by exercise, will be added back to the shares of Class A common stock available for issuance under the 2019 Plan. Shares tendered or held back upon exercise of a stock option or settlement of an award under the 2019 Plan or the 2013 Plan to cover the exercise price or tax withholding and shares subject to a stock appreciation right that are not issued in connection with the stock settlement of the stock appreciation right upon exercise thereof, will not be added back to the shares of Class A common stock available for issuance under the 2019 Plan. In addition, shares of Class A common stock repurchased on the open market will not be added back to the shares of Class A common stock available for issuance under the 2019 Plan.

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    Long-term incentive plan ("LTIP") units are a special class of partnership interests in the Operating Partnership. Each LTIP unit awarded will be deemed equivalent to an award of one share of stock under the Plans, reducing the availability for other equity awards on a one-for-one basis.

    The vesting period for LTIP units, if any, will be determined at the time of issuance. Under the terms of the LTIP units, the Operating Partnership will revalue for tax purposes its assets upon the occurrence of certain specified events, and any increase in valuation from the time of grant until such event will be allocated first to the holders of LTIP units to equalize the capital accounts of such holders with the capital accounts of OP unitholders. Subject to any agreed upon exceptions, once vested and having achieved parity with OP unitholders, LTIP units are convertible into OP Units in the Operating Partnership on a one-for-one basis.

     LTIP units subject to time-based vesting, whether vested or not, receive the same per unit distributions as OP units, which equal per share dividends (both regular and special) on our common stock. LTIP units subject to market-based vesting receive 10% of such distributions currently, unless and until such LTIP units are earned based on performance, at which time they will receive the accrued and unpaid 90% and will commence receiving 100% of such distributions thereafter.

    The following is net income attributable to common stockholders and the issuance of our Class A shares in exchange for the conversion of OP Units into common stock (amounts in thousands):

	Three Months Ended
	March 31, 2021		March 31, 2020
Net income (loss) attributable to common stockholders	$	(2,621)	$	4,495
Increase in additional paid-in capital for the conversion of OP Units into common stock	2,689		7,661
Change from net income (loss) attributable to common stockholders and transfers from non-controlling interests	$	68	$	12,156

    As of March 31, 2021, there were 285,622,197 common stock and OP Units outstanding, of which 172,331,871, or 60.3%, were owned by us and 113,290,326, or 39.7%, were owned by other partners, including certain directors, officers and other members of executive management.

Stock and Publicly Traded Operating Partnership Unit Repurchase Program

    Our Board of Directors reauthorized the repurchase of up to $500 million of our Class A common stock and the Operating Partnership’s Series ES, Series 250 and Series 60 operating partnership units through December 31, 2021. Under the program, we may purchase our Class A common stock and the Operating Partnership’s Series ES, Series 250 and Series 60 operating partnership units 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 us at our discretion and will be subject to stock price, availability, trading volume and general market conditions. The authorization does not obligate us to acquire any particular amount of securities, and the program may be suspended or discontinued at our discretion without prior notice.

    The following table summarizes our purchases of equity securities each of the three months ended March 31, 2021:

Period	Total Number of Shares Purchased	Weighted Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plan	Maximum Approximate Dollar Value Available for Future Purchase (in thousands)
January 2021	337,339	$	9.17	337,339	$	496,908
February 2021	45,732	$	9.65	45,732	$	496,467
March 2021	—	$	—	—	$	496,467

Private Perpetual Preferred Units

    As of March 31, 2021, there were 4,664,038 Series 2019 Preferred Units ("Series 2019 Preferred Units") and 1,560,360 Series 2014 Private Perpetual Preferred Units ("Series 2014 Preferred Units"). The Series 2019 Preferred Units have a liquidation preference of $13.52 per unit and are entitled to receive cumulative preferential annual cash distributions of $0.70 per unit payable in arrears on a quarterly basis. The Series 2019 Preferred Units are not redeemable at the option of the holders

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and are redeemable at our option only in the case of specific defined events. The Series 2014 Preferred Units which have a liquidation preference of $16.62 per unit and are entitled to receive cumulative preferential annual cash distributions of $0.60 per unit payable in arrears on a quarterly basis. The Series 2014 Preferred Units are not redeemable at the option of the holders and are redeemable at our option only in the case of specific defined events.

Dividends and Distributions

    Total dividends paid to common stockholders were $0.0 million and $19.0 million for the three months ended March 31, 2021 and 2020, respectively. Total distributions paid to OP unitholders, excluding inter-company distributions, were $0.0 million and $12.6 million for the three months ended March 31, 2021 and 2020, respectively. Total distributions paid to preferred unitholders were $1.1 million and $1.1 million for the three months ended March 31, 2021 and 2020, respectively.

Incentive and Share-Based Compensation

    The Plans provide for grants to directors, employees and consultants consisting of stock options, restricted stock, dividend equivalents, stock payments, performance shares, LTIP units, stock appreciation rights and other incentive awards. An aggregate of 11.0 million shares of our common stock is authorized for issuance under awards granted pursuant to the 2019 Plan, and as of March 31, 2021, 7.8 million shares of common stock remain available for future issuance.

    In March 2021, we made grants of LTIP units to executive officers under the 2019 Plan. At such time, we granted to executive officers a total of 364,199 LTIP units that are subject to time-based vesting and 1,007,156 LTIP units that are subject to market-based vesting, with fair market values of $3.4 million for the time-based vesting awards and $6.9 million for the market-based vesting awards. In March 2021, we made grants of LTIP units and restricted stock to certain other employees under the 2019 Plan. At such time, we granted to certain other employees a total of 128,419 LTIP units and 113,333 shares of restricted stock that are subject to time-based vesting and 192,760 LTIP units that are subject to market-based vesting, with fair market values of $2.7 million for the time-based vesting awards and $1.5 million for the market-based vesting awards. The awards subject to time-based vesting vest ratably over four years from January 1, 2021, subject generally to the grantee's continued employment. The first installment vests on January 1, 2022 and the remainder will vest thereafter in three equal annual installments. The vesting of the LTIP units subject to market-based vesting is based on the achievement of relative total stockholder return hurdles over a three-year performance period, commencing on January 1, 2021. Following the completion of the three-year performance period, our Compensation and Human Capital Committee will determine the number of LTIP units to which the grantee is entitled based on our performance relative to the performance hurdles set forth in the LTIP unit award agreements the grantee entered into in connection with the award grant. These units then vest in two installments, with the first installment vesting on January 1, 2024 and the second installment vesting on January 1, 2025, subject generally to the grantee's continued employment on those dates.

In March 2021, we also made one-time additional grants of LTIP units and restricted stock to an executive officer and certain other employees under the 2019 Plan. At such time, we granted the executive officer 46,168 LTIP units that are subject to time-based vesting and we granted to certain other employees 85,409 LTIP units and 7,562 restricted stock that are subject to time-based vesting, with fair market values of $1.5 million. These awards are subject to time-based vesting and vest over five years from January 1, 2021, subject generally to the grantee's continued employment. The first installment vests 30% on January 1, 2024, the second installment vests 30% on January 1, 2025 and the remainder of 40% will vest on January 1, 2026.

For awards granted in 2017, 2018, 2019 and 2020, our named executive officers can elect to receive their annual incentive bonus in any combination of (i) cash or vested LTIPs at the face amount of such bonus or (ii) time-vesting LTIPs which would vest over three years, subject to continued employment, at 125% of such face amount. For awards granted in 2021, the amounts vest at 120% of such face amount. In March 2021, we made grants of LTIP units to executive officers under the 2019 Plan in connection with the 2020 bonus election program. We granted to executive officers a total of 235,729 LTIP units that are subject to time-based vesting with a fair market value of $2.2 million. Of these LTIP units, 39,472 LTIP units vested immediately on the grant date and 196,257 LTIP units vest ratably over three years from January 1, 2021, subject generally to the grantee's continued employment. The first installment vests on January 1, 2022 and the remainder will vest thereafter in two equal annual installments.

In March 2020, we made grants of LTIP units to executive officers under the 2019 Plan. At such time, we granted to executive officers a total of 745,155 LTIP units that are subject to time-based vesting and 3,358,767 LTIP units that are subject to market-based vesting, with fair market values of $5.6 million for the time-based vesting awards and $14.0 million for the market-based vesting awards. In March 2020, we made grants of LTIP units and restricted stock to certain other employees under the 2019 Plan. At such time, we granted to certain other employees a total of 113,971 LTIP units and 158,806 shares of restricted stock that are subject to time-based vesting and 502,475 LTIP units that are subject to market-based vesting, with fair

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market values of $2.3 million for the time-based vesting awards and $2.3 million for the market-based vesting awards. The awards subject to time-based vesting vest ratably over four years from January 1, 2020, subject generally to the grantee's continued employment. The first installment vests on January 1, 2021 and the remainder will vest thereafter in three equal annual installments. The vesting of the LTIP units subject to market-based vesting is based on the achievement of relative total stockholder return hurdles over a three-year performance period, commencing on January 1, 2020. Following the completion of the three-year performance period, our Compensation and Human Capital Committee will determine the number of LTIP units to which the grantee is entitled based on our performance relative to the performance hurdles set forth in the LTIP unit award agreements the grantee entered into in connection with the award grant. These units then vest in two installments, with the first installment vesting on January 1, 2023 and the second installment vesting on January 1, 2024, subject generally to the grantee's continued employment on those dates.

    In March 2020, we made grants of LTIP units to executive officers under the 2019 Plan in connection with the 2019 bonus election program. We granted to executive officers a total of 624,380 LTIP units that are subject to time-based vesting with a fair market value of $4.4 million. Of these LTIP units, 23,049 LTIP units vested immediately on the grant date and 601,331 LTIP units vest ratably over three years from January 1, 2020, subject generally to the grantee's continued employment. The first installment vests on January 1, 2021 and the remainder will vest thereafter in two equal annual installments.

    In May 2020, we made grants of LTIP units under the 2019 Plan. At such time, we granted our non-employee directors a total of 171,153 LTIP units that are subject to time-based vesting with fair market values of $1.1 million. These awards vest ratably over three years from the date of the grant, subject generally to the director's continued service on our Board of Directors. We also granted Christina Chiu, our Executive Vice President and Chief Financial Officer, a total of 82,199 LTIP units that are subject to time-based vesting and 116,927 LTIP units that are subject to market-based vesting, with fair market values of $0.5 million for the time-based vesting awards and $0.5 million for the market-based vesting awards. We also granted certain other employees a total of 63,229 LTIP units that are subject to time-based vesting with a fair market value of $0.4 million. The awards subject to time-based vesting vest ratably over three or four years from the date of grant, subject generally to the grantee's continued employment. The first installment vests on the respective grant dates in May 2021 and the remainder will vest thereafter in two or three equal annual installments. The vesting of the LTIP units subject to market-based vesting is based on the achievement of relative total stockholder return hurdles over a three-year performance period, commencing on May 7, 2020. Following the completion of the three-year performance period, our Compensation and Human Capital Committee will determine the number of LTIP units to which the grantee is entitled based on our performance relative to the performance hurdles set forth in the LTIP unit award agreements the grantee entered into in connection with the award grant. These units then vest in two installments, with the first installment vesting on May 7, 2023 and the second installment vesting on May 7, 2024, subject generally to the grantee's continued employment on those dates.

    In December and August 2020, we granted Grant H. Hill and R. Paige Hood, respectively, our new non-employee directors, a total of 31,117 LTIP units that are subject to time-based vesting with a fair market value of $0.2 million. These awards vest ratably on each of the first three anniversaries of May 15, 2020, subject generally to their continued service on our Board of Directors.

    In COVID-19 disrupted markets during the first quarter of 2020, the LTIP units that are subject to market-based vesting were undervalued on initial appraisal, and the resulting number of LTIP units issued in March 2020 was reduced on final appraisal to match the original Board-approved dollar value. In June 2020, we reduced the grants of LTIP units that are subject to market-based vesting which were awarded to executive officers and certain other employees by 666,933 LTIP units with fair market values of $2.8 million and 99,630 LTIP units with fair market values of $0.5 million, respectively.

    Share-based compensation for time-based equity awards is measured at the fair value of the award on the date of grant and recognized as an expense on a straight-line basis over the shorter of (i) the stated vesting period, which is generally three, four or five years, or (ii) the period from the date of grant to the date the employee becomes retirement eligible, which may occur upon grant. An employee is retirement eligible when the employee attains the (i) age of 65 and (ii) the date on which the employee has first completed ten years of continuous service with us or our affiliates. During the second quarter of 2020, the Board approved changing the definition of retirement age from 60 to 65 starting with the grant awards issued in March 2020 under the 2019 Plan. Share-based compensation for market-based equity awards is measured at the fair value of the award on the date of grant and recognized as an expense on a straight-line basis over three or four years depending on retirement eligibility.

    For the market-based LTIP units, the fair value of the awards was estimated using a Monte Carlo Simulation model and discounted for the restriction period during which the LTIP units cannot be redeemed or transferred and the uncertainty regarding if, and when, the book capital account of the LTIP units will equal that of the common units.  Our stock price, along

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with the prices of the comparative indexes, is assumed to follow the Geometric Brownian Motion Process.  Geometric Brownian Motion is a common assumption when modeling in financial markets, as it allows the modeled quantity (in this case the stock price) to vary randomly from its current value and take any value greater than zero.  The volatilities of the returns on our stock price and the comparative indexes were estimated based on implied volatilities and historical volatilities using a six-year look-back period.  The expected growth rate of the stock prices over the performance period is determined with consideration of the risk-free rate as of the grant date.  For LTIP unit awards that are time-based, the fair value of the awards was estimated based on the fair value of our stock at the grant date discounted for the restriction period during which the LTIP units cannot be redeemed or transferred and the uncertainty regarding if, and when, the book capital account of the LTIP units will equal that of the common units.  For restricted stock awards, we estimate the stock compensation expense based on the fair value of the stock at the grant date.

    LTIP units and restricted stock issued during the three months ended March 31, 2021 were valued at $18.3 million. The weighted average per unit or share fair value was $8.38 for grants issued in 2021. The per unit or share granted in 2020 was estimated on the respective dates of grant using the following assumptions: an expected life from 2.0 to 5.3 years, a dividend rate of 2.60%, a risk-free interest rate from 0.12% to 0.32%, and an expected price volatility from 36.0% to 53.0%.

    No other stock options, dividend equivalents, or stock appreciation rights were issued or outstanding in 2021.

    The following is a summary of restricted stock and LTIP unit activity for the three months ended March 31, 2021:

	Restricted Stock	LTIP Units	Weighted Average Grant Fair Value
Unvested balance at December 31, 2020	217,700	7,750,284	$	6.94
Vested	(70,338)	(847,406)	11.94
Granted	120,895	2,059,840	8.38
Forfeited or unearned	(9,495)	(1,417,107)	5.47
Unvested balance at March 31, 2021	258,762	7,545,611	$	7.02

    The LTIP unit and restricted stock awards are treated for accounting purposes as immediately vested upon the later of (i) the date the grantee attains the age of 60 or 65, as applicable, and (ii) the date on which grantee has first completed ten years of continuous service with our company or its affiliates. For award agreements that qualify, we recognize noncash compensation expense on the grant date for the time-based awards and ratably over the vesting period for the performance-based awards, and accordingly, we recognized $1.0 million and $1.6 million for the three months ended March 31, 2021 and 2020, respectively. Unrecognized compensation expense was $2.1 million at March 31, 2021, which will be recognized over a weighted average period of 2.7 years.

    For the remainder of the LTIP unit and restricted stock awards, we recognize noncash compensation expense ratably over the vesting period, and accordingly, we recognized noncash compensation expense of $3.8 million and $4.3 million for the three months ended March 31, 2021 and 2020 respectively. Unrecognized compensation expense was $38.8 million at March 31, 2021, which will be recognized over a weighted average period of 2.7 years.

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Earnings Per Share

    Earnings per share for the three months ended March 31, 2021 and 2020 is computed as follows (amounts in thousands, except per share amounts):

	Three Months Ended
	March 31, 2021		March 31, 2020
Numerator - Basic:
Net income (loss)	$	(3,191)	$	8,288
Private perpetual preferred unit distributions	(1,050)		(1,050)
Net income (loss) attributable to non-controlling interests	1,620		(2,743)
Earnings allocated to unvested shares	—		(11)
Net income (loss) attributable to common stockholders – basic	$	(2,621)	$	4,484
Numerator - Diluted:
Net income (loss)	$	(3,191)	$	8,288
Private perpetual preferred unit distributions	(1,050)		(1,050)
Earnings allocated to unvested shares	—		(11)
Net income (loss) attributable to common stockholders – diluted	$	(4,241)	$	7,227
Denominator:
Weighted average shares outstanding – basic	171,735		181,741
Operating partnership units	106,146		110,904
Effect of dilutive securities:
Stock-based compensation plans	—		—
Weighted average shares outstanding – diluted	277,881		292,645
Earnings (loss) per share:
Basic	$	(0.02)	$	0.02
Diluted	$	(0.02)	$	0.02

    There were 315,595 and 399,894 antidilutive shares and LTIP units for the three months ended March 31, 2021 and 2020, respectively.

10. Related Party Transactions

Supervisory Fee Revenue

    We earned supervisory fees from entities affiliated with Anthony E. Malkin, our Chairman and Chief Executive Officer, of $0.2 million and $0.2 million for the three months ended March 31, 2021 and 2020, respectively. These fees are included within third-party management and other fees.

Property Management Fee Revenue

    We earned property management fees from entities affiliated with Anthony E. Malkin of $0.04 million and $0.1 million for the three months ended March 31, 2021 and 2020, respectively. These fees are included within third-party management and other fees.

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Other

    We receive rent generally at the market rental rate for 5,447 square feet of leased space from entities affiliated with Anthony E. Malkin at one of our properties. Under the lease, the tenant has the right to cancel such lease without special payment on 90 days’ notice. We also have a shared use agreement with such tenant, to occupy a portion of the leased premises as the office location for Peter L. Malkin, our chairman emeritus and employee, utilizing approximately 15% of the space, for which we pay to such tenant an allocable pro rata share of the cost. We also have agreements with these entities and excluded properties and businesses to provide them with general computer-related support services. Total revenue aggregated $0.1 million and $0.1 million for the three months ended March 31, 2021 and 2020, respectively.

11. Segment Reporting

    We have identified two reportable segments: (1) real estate and (2) observatory. Our real estate segment includes all activities related to the ownership, management, operation, acquisition, redevelopment, repositioning and disposition of our traditional real estate assets. Our observatory segment includes the operation of the 86th and 102nd floor observatories at the Empire State Building. These two lines of businesses are managed separately because each business requires different support infrastructures, provides different services and has dissimilar economic characteristics such as investments needed, stream of revenues and marketing strategies. We account for intersegment sales and rent as if the sales or rent were to third parties, that is, at current market prices.

The following tables provide components of segment net income (loss) for each segment for the three and three months ended March 31, 2021 and 2020 (amounts in thousands):

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	Three Months Ended March 31, 2021
	Real Estate		Observatory		Intersegment Elimination		Total
Revenues:
Rental revenue	$	140,231	$	—	$	—	$	140,231
Intercompany rental revenue	4,932		—		(4,932)		—
Observatory revenue	—		2,603		—		2,603
Lease termination fees	1,289		—		—		1,289
Third-party management and other fees	276		—		—		276
Other revenue and fees	905		—		—		905
Total revenues	147,633		2,603		(4,932)		145,304
Operating expenses:
Property operating expenses	30,279		—		—		30,279
Intercompany rent expense	—		4,932		(4,932)		—
Ground rent expense	2,331		—		—		2,331
General and administrative expenses	13,853		—		—		13,853
Observatory expenses	—		4,588		—		4,588
Real estate taxes	31,447		—		—		31,447
Depreciation and amortization	44,419		38		—		44,457
Total operating expenses	122,329		9,558		(4,932)		126,955
Total operating income (loss)	25,304		(6,955)		—		18,349
Other income (expense):
Interest income	120		2		—		122
Interest expense	(23,554)		—		—		(23,554)
Loss on early extinguishment of debt	(214)		—		—		(214)
Income (loss) before income taxes	1,656		(6,953)		—		(5,297)
Income tax (expense) benefit	(283)		2,389		—		2,106
Net income (loss)	$	1,373	$	(4,564)	$	—	$	(3,191)
Segment assets	$	3,910,152	$	241,371	$	—	$	4,151,523
Expenditures for segment assets	$	23,331	$	4	$	—	$	23,335

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	Three Months Ended March 31, 2020
	Real Estate		Observatory		Intersegment Elimination		Total
Revenues:
Rental revenue	$	148,113	$	—	$	—	$	148,113
Intercompany rental revenue	11,536		—		(11,536)		—
Observatory revenue	—		19,544		—		19,544
Lease termination fees	211		—		—		211
Third-party management and other fees	346		—		—		346
Other revenue and fees	2,010		—		—		2,010
Total revenues	162,216		19,544		(11,536)		170,224
Operating expenses:
Property operating expenses	41,468		—		—		41,468
Intercompany rent expense	—		11,536		(11,536)		—
Ground rent expense	2,331		—		—		2,331
General and administrative expenses	15,951		—		—		15,951
Observatory expenses	—		8,154		—		8,154
Real estate taxes	29,254		—		—		29,254
Depreciation and amortization	46,085		8		—		46,093
Total operating expenses	135,089		19,698		(11,536)		143,251
Total operating income	27,127		(154)		—		26,973
Other income (expense):
Interest income	637		—		—		637
Interest expense	(19,618)		—		—		(19,618)
Loss on early extinguishment of debt	(86)		—		—		(86)
Income (loss) before income taxes	8,060		(154)		—		7,906
Income tax (expense) benefit	(227)		609		—		382
Net income	$	7,833	$	455	$	—	$	8,288
Segment assets	$	4,409,281	$	255,277	$	—	$	4,664,558
Expenditures for segment assets	$	26,570	$	1,237	$	—	$	27,807

12. Subsequent Events

    None.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Unless the context otherwise requires or indicates, references in this section to “we,” “our,” and “us” refer to our company and its consolidated subsidiaries. The following discussion related to our consolidated financial statements should be read in conjunction with the financial statements and the notes thereto appearing elsewhere in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2019.

FORWARD-LOOKING STATEMENTS

     This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and are including this statement for purposes of complying with those safe harbor provisions. 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 the negative of these words and phrases or similar words or phrases. In particular, statements pertaining to our capital resources, portfolio performance, dividend policy and results of operations contain forward-looking statements. Likewise, all of our statements regarding anticipated growth in our portfolio from operations, acquisitions and anticipated market conditions, demographics and results of operations are forward-looking statements.

Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and are generally beyond our control, and you should not rely on them as predictions of future events. Forward-looking statements 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: (i) economic, political and social impact of, and uncertainty relating to, the COVID-19 pandemic; (ii) resolution of legal proceedings involving the Company; (iii) reduced demand for office or retail space, including as a result of the COVID-19 pandemic; (iv) changes in our business strategy; (v) changes in technology and market competition that affect utilization of our office, retail, broadcast or other facilities; (vi) changes in domestic or international tourism, including due to health crises such as the COVID-19 pandemic, geopolitical events and/or currency exchange rates, which may cause a decline in Observatory visitors; (vii) defaults on, early terminations of, or non-renewal of, leases by tenants; (viii) increases in the Company’s borrowing costs as a result of changes in interest rates and other factors, including the potential phasing out of LIBOR after 2021; (ix) declining real estate valuations and impairment charges; (x) termination or expiration of our ground leases; (xi) changes in our ability to pay down, refinance, restructure or extend our indebtedness as it becomes due and potential limitations on our ability to borrow additional funds in compliance with drawdown conditions and financial covenants; (xii) decreased rental rates or increased vacancy rates; (xiii) 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; (xiv) difficulties in identifying properties to acquire and completing acquisitions; (xv) risks related to our development projects (including our Metro Tower development site) and capital projects, including the cost of construction delays and cost overruns; (xvi) impact of changes in governmental regulations, tax laws and rates and similar matters; (xvii) our failure to qualify as a REIT; (xviii) environmental uncertainties and risks related to adverse weather conditions, rising sea levels and natural disasters, and (xix) the accuracy of our methodologies and estimates regarding ESG metrics, goals and targets, tenant willingness and ability to collaborate towards reporting ESG metrics and meeting ESG goals and targets, and the impact of governmental regulation on our ESG efforts. 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 this Quarterly Report on Form 10-Q, in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, 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 update or revise publicly 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 Quarterly Report on Form 10-Q, 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.

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Overview

    We are a self-administered and self-managed 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.

Highlights for the three months ended March 31, 2021 included:

•Incurred net loss attributable to the Company of $2.6 million and achieved Core Funds From Operations of $41.0 million.

•Same-Store Property Cash NOI, excluding lease termination fees, was up 3.0% from the first quarter of 2020 primarily driven by lower property operating expenses, partially offset by lower revenue compared to the prior year period.

•Signed 26 new, renewal, and expansion leases, representing a total of 171,817 rentable square feet.

•Collected 94% of first quarter 2021 total billings with 96% for office tenants and 86% for retail tenants. The Company recorded a non-cash reduction of straight-line balances of $0.6 million and wrote off $0.5 million of tenant receivables assessed as uncollectible during the first quarter of 2021.

•Strong liquidity position of $1.4 billion as of March 31, 2021, which consists of $567 million of cash plus an additional $850 million of undrawn capacity under the Company’s new revolving credit facility entered into during the quarter, which matures in March 2025 and has two six-month extension options subject to certain conditions. Moreover, the Company has no outstanding debt maturity until 2024.

•In the first quarter and through April 27, 2021, the Company repurchased $3.5 million of its common stock at an average price of $9.22 per share. This brings the cumulative total, since the stock repurchase program began on March 5, 2020 through April 27, 2021, to $147.2 million at an average price of $8.34 per share.

    As of March 31, 2021, our total portfolio contained 10.1 million rentable square feet of office and retail space. We owned 14 office properties (including three long-term ground leasehold interests) encompassing approximately 9.4 million rentable square feet of office space. Nine of these properties are located in the midtown Manhattan market and aggregate approximately 7.6 million rentable square feet of office space, including the Empire State Building. Our Manhattan office properties also contain an aggregate of approximately 0.5 million rentable square feet of premier retail space on their ground floor and/or contiguous levels. Our remaining five office properties are located in Fairfield County, Connecticut and Westchester County, New York, encompassing in the aggregate approximately 1.8 million rentable square feet. The majority of square footage for these five properties is located in densely populated metropolitan communities with immediate access to mass transportation. Additionally, we have entitled land at the Stamford Transportation Center in Stamford, Connecticut, adjacent to one of our office properties, that will support the development of an approximately 0.4 million rentable square foot office building and garage. As of March 31, 2021, our portfolio included four standalone retail properties located in Manhattan and two standalone retail properties located in the city center of Westport, Connecticut, encompassing approximately 0.2 million rentable square feet in the aggregate.

    The Empire State Building is our flagship property. The Empire State Building provides us with a diverse source of revenue through its office and retail leases, observatory operations and broadcasting licenses and related leased space. Our observatory operations are a separate reporting segment. Our observatory operations are subject to regular patterns of tourist activity in Manhattan and currently impacted by the COVID-19 pandemic. Historically, prior to the outbreak of the COVID-19 pandemic, approximately 16.0% to 18.0% of our annual observatory revenue was realized in the first quarter, 26.0% to 28.0% was realized in the second quarter, 31.0% to 33.0% was realized in the third quarter, and 23.0% to 25.0% was realized in the fourth quarter. On March 16, 2020, we complied with governmental mandates regarding the closing of non-essential businesses in response to the COVID-19 pandemic and closed the Empire State Building Observatory. The Observatory reopened on July 20, 2020.

    The components of the Empire State Building revenue are as follows (dollars in thousands):

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	Three Months Ended March 31,
	2021				2020
Office leases	$	36,268	73.4	%	$	37,083	53.3	%
Retail leases	1,762		3.6	%	1,616		2.3	%
Tenant reimbursements & other income	3,777		7.6	%	6,694		9.6	%
Observatory operations	2,603		5.2	%	19,544		28.0	%
Broadcasting licenses and leases	5,026		10.2	%	4,743		6.8	%
Total	$	49,436	100.0	%	$	69,680	100.0	%

    We have undertaken a comprehensive redevelopment and repositioning strategy of our Manhattan office properties. This strategy is designed to improve the overall value and attractiveness of our properties and has contributed significantly to our tenant repositioning efforts, which seek to increase our occupancy, raise our rental rates, increase our rentable square feet, increase our aggregate rental revenue, lengthen our average lease term, increase our average lease size, and improve our tenant credit quality. These improvements include restored, renovated and upgraded or new lobbies, elevator modernization, renovated public areas and bathrooms, refurbished or new windows, upgrade and standardization of retail storefront and signage, façade restorations, modernization of building-wide systems, and enhanced tenant amenities. We

have also aggregated smaller spaces in order to offer larger blocks of office space, including multiple floors, that are attractive to larger, higher credit-quality tenants as well as to offer new, pre-built suites with improved layouts. This strategy has shown what we believe to be attractive results to date, and we believe has the potential to improve our operating margins and cash flows in the future. From 2002 through March 31, 2021, we have invested a total of approximately $951.1 million (excluding tenant improvement costs and leasing commissions) in our Manhattan office properties pursuant to this program. We intend to fund capital improvements through a combination of operating cash flow, cash on hand, and borrowings.

    The Greater New York Metropolitan Area office market is soft, and we compete with properties that have been redeveloped recently or have planned redevelopment.  We have spent approximately $36.3 million over 2018 through 2021 on these well-maintained and our well-located properties’ common areas and amenities to ensure competitiveness and protect our market position.

     As of March 31, 2021, we had total debt outstanding of approximately $2.2 billion, with a weighted average interest rate of 3.9%, and a weighted average maturity of 7.9 years. 94.2% of our total debt outstanding is fixed-rate indebtedness. Excluding principal amortization, we had no outstanding debt maturing until November 2024. As of March 31, 2021, we had cash and cash equivalents of $567.1 million. Our consolidated net debt to total market capitalization was 32.6% as of March 31, 2021.

Impact of COVID-19

    In March 2020, the outbreak of the novel COVID-19 was recognized as a pandemic by the World Health Organization. The spread of COVID-19 has created a global public health crisis that has resulted in unprecedented economic, social and political uncertainty, volatility and disruption in the United States and globally. We have taken the following actions in response to the impact of the COVID-19 pandemic on our business.

Liquidity

During 2020, we bolstered our balance sheet to ensure proper liquidity by raising $480.0 million in net proceeds in three financings. In March 2020, we drew down $550.0 million under our unsecured revolving facility and in September 2020, we repaid the $550.0 million draw. In March 2021, we closed on our new $850.0 million unsecured revolving credit agreement. We currently hold $567.1 million in cash and cash equivalents on our balance sheet and have $850 million undrawn capacity under our new revolving credit facility. Our new revolving credit facility matures in March 2025 and has two six-month extension options, subject to certain conditions.

Property Operations

All of our office buildings have remained open during the COVID-19 pandemic to tenants that provide essential goods and services, as permitted by the authorities. We have scaled back certain building operations in cleaning, security, lobby concierge and recurring maintenance, which will reduce costs until buildings are repopulated. A portion of the reduction in operating expenses will be offset by a reduction in tenant expense recoveries.

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Our operations team worked diligently to develop and implement plans for tenants' reoccupation of our buildings to ensure a safe, clean and healthy work environment. These plans involved staff reassigned to screen tenants and visitors, changes to cleaning and maintenance standards, and changes to building operations for access by tenants and their guests.

Despite the challenge of the uncertain near-term environment, we continue to believe in the long-term demand for office space. We believe many tenants have acknowledged the challenges, inequities, and worries about divided workplaces between home and office work, the challenges with onboarding new employees and miss the connectivity and productivity that an office environment provides.

Leasing    

    The economic uncertainty relating to the COVID-19 pandemic has slowed the pace of our leasing activity and could result in higher vacancy than we otherwise would have experienced, a longer amount of time to fill vacancies and potentially lower rental rates. As of March 31, 2021, our portfolio was 88.7% leased, including signed leases not yet commenced, including 5.9% subject to leases scheduled to expire in 2021 and 5.5% subject to leases scheduled to expire in 2022.

New leasing activity was impacted during 2020 by the pandemic and shelter-in-place rules that were in effect for much of the period. In 2021, we have seen a reduction in New York state pandemic-linked restrictions such as office capacity which will be raised to 75% effective May 15th. Over March and April 2021, we have seen a noticeable increase in tour volume in our Manhattan office portfolio to about two-thirds of pre-Covid levels. While the recent increase is a positive sign that some tenants are beginning to re-engage, any potential lease transactions that stem from these tours will likely appear in the second half of the year. Healthy buildings and Indoor Environmental Quality is the most asked about topic before and during space tours.

Our smaller food and service type retailers have been hit particularly hard. They provide critical amenities and services to our office tenants. In many instances, we have converted some of their fixed rent to a percentage rent structure, with a payback of the difference between current and percentage rent over a defined period. We intend to support our food and service retailers so that they can service our office tenants when they re-occupy.

Observatory Operations

On March 16, 2020, we complied with governmental mandates regarding the closing of non-essential businesses in response to the COVID-19 pandemic and closed the Empire State Building Observatory.

The observatory reopened under New York State's Phase 4 guidelines, Low-Risk Outdoor Arts and Entertainment, on July 20, 2020. The 102nd observation deck was reopened on August 24, 2020. Subsequent to these dates, we continue to operate with reduced hours, staffing, services, operating costs, credit card fees and marketing expenses. We anticipate that initially we will have a higher local visitor mix, followed by a ramp up of nationally sourced travel, which will then be followed by a restoration of our typical visitor mix that is approximately two-thirds international which we do not expect to be achieved until the broad resumption of international air travel some time in 2022. First quarter 2021 attendance was at nearly 9% of 2019 comparable attendance; a gradual improvement from 2020 levels and consistent with our hypothetical admissions forecast.

We anticipate expenses to be approximately $6-7 million per quarter for the balance of 2021 dependent upon the pace of visitor ramp-up.

The closure of our observatory caused us during each quarter of 2020 and during the first quarter of 2021 to choose to perform an impairment test related to goodwill. We engaged a third-party valuation consulting firm to perform the valuation process. Based upon the results of the goodwill impairment test of the stand-alone observatory reporting unit, which is after the intercompany rent expense paid to the Real Estate reporting unit, we determined that the fair value of the observatory reporting unit exceeded its carrying value by less than 10.0%. Many of the factors employed in determining whether or not goodwill is impaired are outside of our control and it is reasonably likely that assumptions and estimates will change in future periods. We will continue to assess the impairment of the observatory reporting unit goodwill going forward and that continued assessment may again utilize a third-party valuation consulting firm. Goodwill allocated to the observatory reporting unit was $227.5 million at March 31, 2021.

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Results of Operations

Overview

    The discussion below relates to our financial condition and results of operations for the three months ended March 31, 2021 and 2020, respectively.

Three Months Ended March 31, 2021 Compared to the Three Months Ended March 31, 2020

The following table summarizes our historical results of operations for the three months ended March 31, 2021 and 2020 (dollars in thousands):

	Three Months Ended March 31,
	2021		2020		Change		%
Revenues:
Rental revenue	$	140,231	$	148,113	$	(7,882)	(5.3)	%
Observatory revenue	2,603		19,544		(16,941)		(86.7)	%
Lease termination fees	1,289		211		1,078		510.9	%
Third-party management and other fees	276		346		(70)		(20.2)	%
Other revenues and fees	905		2,010		(1,105)		(55.0)	%
Total revenues	145,304		170,224		(24,920)		(14.6)	%
Operating expenses:
Property operating expenses	30,279		41,468		11,189		27.0	%
Ground rent expenses	2,331		2,331		—		—	%
General and administrative expenses	13,853		15,951		2,098		13.2	%
Observatory expenses	4,588		8,154		3,566		43.7	%
Real estate taxes	31,447		29,254		(2,193)		(7.5)	%
Depreciation and amortization	44,457		46,093		1,636		3.5	%
Total operating expenses	126,955		143,251		16,296		11.4	%
Operating income	18,349		26,973		(8,624)		(32.0)	%
Other income (expense):
Interest income	122		637		(515)		(80.8)	%
Interest expense	(23,554)		(19,618)		(3,936)		(20.1)	%
Loss on early extinguishment of debt	(214)		(86)		(128)		(148.8)	%
Income (loss) before income taxes	(5,297)		7,906		(13,203)		(167.0)	%
Income tax benefit	2,106		382		1,724		451.3	%
Net income (loss)	(3,191)		8,288		(11,479)		(138.5)	%
Private perpetual preferred unit distributions	(1,050)		(1,050)		—		—	%
Net (income) loss attributable to non-controlling interests	1,620		(2,743)		4,363		159.1	%
Net income (loss) attributable to common stockholders	$	(2,621)	$	4,495	$	(7,116)	(158.3)	%

Rental Revenue

    The decrease in rental revenue was attributable to the write-off of straight-line receivables and uncollectible tenant receivables and lower tenant expense reimbursements, consistent with lower operating expenses.

Observatory Revenue

Observatory revenues were lower due to the COVID-19 pandemic as New York tourism continues to be impacted by international, national, and local travel restrictions.

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Lease Termination Fees

Higher termination fees were earned in the three months ended March 31, 2021 compared to the three months ended March 31, 2020.

Third-Party Management and Other Fees

    Management fee income was consistent with prior year.

Other Revenues and Fees

The decrease in other revenues and fees was due to lower food and beverage sales and lower parking income due to the COVID-19 pandemic.

Property Operating Expenses

The decrease in property operating expenses was primarily due to lower repair and maintenance costs, lower payroll costs, lower utility costs and lower professional fees. The lower costs are primarily driven by lower tenant utilization in our buildings.

Ground Rent Expenses

Ground rent expense was consistent with 2020.

General and Administrative Expenses

    The decrease in general and administrative expenses was primarily due to lower equity compensation expense and lower legal leasing costs.

Observatory Expenses

The decrease in observatory expenses was driven by limited operations of the observatory during the three months ended March 31, 2021.

Real Estate Taxes

The increase in real estate taxes was primarily due to higher assessed values for multiple properties.

Depreciation and Amortization

    Depreciation and amortization expense were consistent with 2020.

Interest Income

    The decrease in interest income was primarily due to lower interest rates.

Interest Expense

    Interest expense increased due to higher debt levels in the three months ended March 31, 2021.

Income Taxes

The increase in income tax benefit was attributable to higher net loss for the Observatory segment.

Liquidity and Capital Resources

    Liquidity is a measure of our ability to meet potential cash requirements, including ongoing commitments to repay borrowings, fund and maintain our assets and operations, including lease-up costs, fund our redevelopment and repositioning programs, acquire properties, make distributions to our securityholders and fulfill other general business needs. Based on the historical experience of our management and our business strategy, in the foreseeable future we anticipate we will generate positive cash flows from operations. In order to qualify as a REIT, we are required under the Internal Revenue Code of 1986 to distribute to our stockholders, on an annual basis, at least 90% of our REIT taxable income, determined without regard to

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the deduction for dividends paid and excluding net capital gains. We expect to make quarterly distributions, as required, to our securityholders.

While we may be able to anticipate and plan for certain liquidity needs, there may be unexpected increases in uses of cash that are beyond our control and which would affect our financial condition and results of operations. For example, we may be required to comply with new laws or regulations that cause us to incur unanticipated capital expenditures for our properties, thereby increasing our liquidity needs. Even if there are no material changes to our anticipated liquidity requirements, our sources of liquidity may be fewer than, and the funds available from such sources may be less than, anticipated or needed. Our primary sources of liquidity will generally consist of cash on hand and cash generated from our operating activities, debt issuances and unused borrowing capacity under our unsecured revolving credit facility. We expect to meet our short-term liquidity requirements, including distributions, operating expenses, working capital, debt service, and capital expenditures from cash flows from operations, cash on hand, debt issuances, and available borrowing capacity under our unsecured revolving credit facility. The availability of these borrowings is subject to the conditions set forth in the applicable loan agreements. We expect to meet our long-term capital requirements, including acquisitions, redevelopments and capital expenditures through our cash flows from operations, cash on hand, our unsecured revolving credit facility, mortgage financings, debt issuances, common and/or preferred equity issuances and asset sales. Our properties require periodic investments of capital for individual lease related tenant improvements allowances, general capital improvements and costs associated with capital expenditures. Our overall leverage will depend on our mix of investments and the cost of leverage. Our charter does not restrict the amount of leverage that we may use.

At March 31, 2021, we had $567.1 million available in cash and cash equivalents, and $850 million available under our unsecured revolving credit facility.

    For a five year right of first offer period expiring August 23, 2021, Q REIT Holding LLC, a Qatar Financial Centre limited liability company and a wholly owned subsidiary of the Qatar Investment Authority, a governmental authority of the State of Qatar (“QREIT”, together with any eligible transferee, “QIA”) will have a right of first offer to co-invest with us as a joint venture partner in real estate investment opportunities initiated by us where we have elected, at our discretion, to seek out a joint venture partner in real estate investment opportunities. The right of first offer period will be extended for 30 months beyond its original expiration date so long as at least one joint venture transaction is consummated by us and QIA during the initial five year term, and will be extended for a further 30-month term if at least one more joint venture transaction is consummated during such initial extension period.

    As of March 31, 2021, we had approximately $2.2 billion of total consolidated indebtedness outstanding, with a weighted average interest rate of 3.9% and a weighted average maturity of 7.9 years. As of March 31, 2021, excluding principal amortization, we have no outstanding debt maturing until November 2024. Our consolidated net debt to total market capitalization was 32.6% as of March 31, 2021.

Unsecured Revolving Credit and Term Loan Facilities

    On March 31, 2021, through our Operating Partnership, we entered into a second amendment to an existing credit agreement ("Amended Credit Agreement") that will govern an amended senior unsecured credit facility (the “Credit Facility”) with Bank of America, N.A., as administrative agent, and Bank of America, Wells Fargo Bank, National Association, Capital One, National Association and JPMorgan Chase Bank, N.A., as co-syndication agents, and the lenders and the letter of credit issuers party thereto. The Amended Credit Agreement amends the amended and restated credit agreement dated August 29, 2017, as amended, by and among the parties named therein.

    This Credit Facility is comprised of a $850 million revolving credit facility and a $215 million term loan facility. We borrowed the term loan facility in full in August 2017. The Credit Facility contains an accordion feature that would allow us to increase the maximum aggregate principal amount to $1.5 billion under specified circumstances. Certain of our Operating Partnership's subsidiaries are guarantors of our obligations under the amended unsecured revolving credit and term loan facility.

    Amounts under the amended revolving credit facility bear interest at a floating rate equal to, at our election, (x) the Eurodollar rate, plus a spread that will range from 1.30% to 1.70% depending upon our leverage ratio or (y) a base rate, plus a spread that will range from 0.30% to 0.70% depending upon our leverage ratio. If we achieve investment-grade ratings, subject to the terms of the Amended Credit Agreement, we may elect for the amounts outstanding to bear interest at a floating rate equal to, at our election, (x) the Eurodollar rate, plus a spread that will range from 0.775% to 1.45% depending upon our credit rating, or (y) a base rate, plus a spread that will range from 0.0% to 0.45% depending upon our credit rating. The LIBOR replacement provisions in the Amended Credit Agreement provide for the use of rates based on the secured

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overnight financing rate ( “SOFR”) administered by the Federal Reserve Bank of New York. The Amended Credit Agreement also includes a sustainability component whereby the revolving credit facility pricing is reduced upon our achievement of certain sustainability ratings.

Amounts outstanding under the term loan facility bear interest at a floating rate equal to, at our election, (x) the Eurodollar rate, plus a spread that will range from 1.20% to 1.75% depending upon our leverage ratio, or (y) a base rate, plus a spread that will range from 0.20% to 0.75% depending upon our leverage ratio. If we achieve investment-grade ratings, subject to the terms of the Amended Credit Agreement, we may elect for amounts outstanding to bear interest at a floating rate equal to, at our election, (x) the Eurodollar rate, plus a spread that will range from 0.85% to 1.65% depending upon our credit rating, or (y) a base rate, plus a spread that will range from 0.0% to 0.65% depending upon our credit rating.

    We paid certain customary fees and expense reimbursements in connection with the Credit Facility, including a facility fee on commitments under the revolving credit facility that range from 0.20% to 0.35% (or 0.125% to 0.30% if we achieve investment-grade ratings and elect the alternative pricing described above), subject to the terms of the Amended Credit Agreement.

    The revolving credit facility matures on March 31, 2025. We have the option to extend the initial term for up to two additional six-month periods, subject to certain conditions, including the payment of an extension fee equal to 0.0625% and 0.075% of the then outstanding commitments under the revolving credit facility on the first and the second extensions, respectively. The term loan facility matures on March 19, 2025. We may prepay the loans under the Credit Facility at any time in whole or in part, subject to reimbursement of the lenders’ breakage and redeployment costs in the case of prepayment of Eurodollar Rate borrowings.

    During March 2020, through the Operating Partnership, we entered into a senior unsecured term loan facility (the “Term Loan Facility”) with Wells Fargo Bank, National Association, as administrative agent, Wells Fargo Securities, LLC as sole bookrunner, Wells Fargo Securities, LLC, Capital One, National Association, U.S. Bank National Association and SunTrust Robinson Humphrey, Inc. as Joint Lead Arrangers, Capital One, National Association, as syndication agent, U.S. Bank National Association and Truist Bank, as documentation agents, and the lenders party thereto.

    The Term Loan Facility is in the original principal amount of $175 million which we borrowed in full at closing. We may request the Term Loan Facility be increased through one or more increases or the addition of new pari passu term loan tranches, for a maximum aggregate principal amount not to exceed $225 million. Certain of the Operating Partnership's subsidiaries are guarantors of our obligations under the Term Loan Facility.

    Amounts outstanding under the Term Loan Facility bear interest at a floating rate equal to, at our election, (x) the LIBOR rate, plus a spread that will range from 1.5% to 2.2% depending upon our leverage ratio, or (y) a base rate, plus a spread that will range from 0.5% to 1.2% depending upon our leverage ratio. If we achieve investment-grade ratings, subject to the terms of the Term Loan Facility, we may elect for amounts outstanding to bear interest at a floating rate equal to, at our election, (x) the LIBOR rate, plus a spread that will range from 1.4% to 2.25% depending upon our credit rating, or (y) a base rate, plus a spread that will range from 0.4% to 1.25% depending upon our credit rating.

    The Term Loan Facility matures on December 31, 2026. We may prepay loans under the Term Loan Facility at any time, in whole or in part, subject to reimbursement of the lenders’ breakage and redeployment costs in the case of prepayment of Eurodollar rate borrowings and, if the prepayment occurs on or before December 31, 2021, a prepayment fee. If the prepayment occurs after December 31, 2020 but on or prior to December 31, 2021, the prepayment fee is equal to 1.0% of the principal amount prepaid.

    Both the Credit Facility and the Term Loan Facility (collectively, the "Credit Facilities") include the following financial covenants, subject to customary qualifications and cushions: (i) maximum leverage ratio of total indebtedness to total asset value of the loan parties and their consolidated subsidiaries will not exceed 60%, (ii) consolidated secured indebtedness will not exceed 40% of total asset value, (iii) adjusted EBITDA (as defined in the agreement) to consolidated fixed charges will not be less than 1.50x, (iv) the aggregate net operating income with respect to all unencumbered eligible properties to the portion of interest expense attributable to unsecured indebtedness will not be less than 1.75x, and (v) the ratio of total unsecured indebtedness to unencumbered asset value will not exceed 60%.

    The Credit Facilities contain customary covenants, including limitations on liens, investment, distributions, debt, fundamental changes, and transactions with affiliates, and requires certain customary financial reports. The Credit Facilities contain customary events of default (subject in certain cases to specified cure periods), including but not limited to non-payment, breach of covenants, representations or warranties, cross defaults, bankruptcy or other insolvency events, judgments, ERISA events, invalidity of loan documents, loss of real estate investment trust qualification, and occurrence of

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a change of control (as defined in the respective Credit Facilities). As of March 31, 2021, we were in compliance with the covenants.

Senior Unsecured Notes

    On March 17, 2020, through the Operating Partnership, we entered into an agreement to issue and sell an aggregate $175 million of senior unsecured notes, consisting of (a) $100 million aggregate principal amount of 3.61% Series G Senior Notes due March 17, 2032 (the “Series G Notes”) and (b) $75 million aggregate principal amount of 3.73% Series H Senior Notes due March 17, 2035 (the “Series H Notes”), in a private placement to entities affiliated with Prudential Capital Group, AIG Asset Management and MetLife Investment Management, LLC. The issue price for the Series G Notes and Series H Notes was 100% of the aggregate principal amount thereof.

    The senior unsecured notes are senior unsecured obligations and are unconditionally guaranteed by each of our subsidiaries that guarantees indebtedness under the unsecured revolving credit and term loan facility. Interest on the senior unsecured notes is payable quarterly.

    The terms of the Series G Notes and Series H Notes agreement include customary covenants, including limitations on liens, investment, distributions, debt, fundamental changes, and transactions with affiliates and require certain customary financial reports. It also requires compliance with financial ratios including a maximum leverage ratio, a maximum secured leverage ratio, a minimum fixed charge coverage ratio, a minimum unencumbered interest coverage ratio, and a maximum unsecured leverage ratio. The agreement also contains customary events of default (subject in certain cases to specified cure periods), including but not limited to non-payment, breach of covenants, representations or warranties, cross defaults, bankruptcy or other insolvency events, judgments, ERISA events, the occurrence of certain change of control transactions and loss of real estate investment trust qualification. As of March 31, 2021, we were in compliance with the covenants under the outstanding senior unsecured notes.

Financial Covenants

As of March 31, 2021, we were in compliance with the following financial covenants:

Financial covenant	Required	March 31, 2021		In Compliance
Maximum total leverage	< 60%	40.7	%	Yes
Maximum secured debt	< 40%	14.8	%	Yes
Minimum fixed charge coverage	> 1.50x	2.2x		Yes
Minimum unencumbered interest coverage	> 1.75x	4.5x		Yes
Maximum unsecured leverage	< 60%	33.6	%	Yes

Leverage Policies

We expect to employ leverage in our capital structure in amounts determined from time to time by our board of directors. Although our board of directors has not adopted a policy that limits the total amount of indebtedness that we may incur, we anticipate that our board of directors will consider a number of factors in evaluating our level of indebtedness from time to time, as well as the amount of such indebtedness that will be either fixed or floating rate. Our charter and bylaws do not limit the amount or percentage of indebtedness that we may incur nor do they restrict the form in which our indebtedness will be taken (including, but not limited to, recourse or non-recourse debt and cross-collateralized debt). Our overall leverage will depend on our mix of investments and the cost of leverage, however, we initially intend to maintain a level of indebtedness consistent with our plan to seek an investment grade credit rating. Our board of directors may from time to time modify our leverage policies in light of the then-current economic conditions, relative costs of debt and equity capital, market values of our properties, general market conditions for debt and equity securities, fluctuations in the market price of our common stock, growth and acquisition opportunities and other factors.

Capital Expenditures

The following tables summarize our leasing commission costs, tenant improvement costs and our capital expenditures for each of the periods presented (dollars in thousands, except per square foot amounts).

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Office Properties(1)

	Three Months Ended March 31,
Total New Leases, Expansions, and Renewals	2021		2020
Number of leases signed(2)	25		31
Total square feet	170,757		117,481
Leasing commission costs(3)	$	3,473	$	1,546
Tenant improvement costs(3)	12,782		7,818
Total leasing commissions and tenant improvement costs(3)	$	16,255	$	9,364
Leasing commission costs per square foot(3)	$	20.34	$	13.16
Tenant improvement costs per square foot(3)	74.85		66.55
Total leasing commissions and tenant improvement costs per square foot(3)	$	95.19	$	79.71

Retail Properties(4)

	Three Months Ended March 31,
Total New Leases, Expansions, and Renewals	2021		2020
Number of leases signed(2)	1		4
Total square feet	1,060		31,662
Leasing commission costs(3)	$	31	$	1,465
Tenant improvement costs(3)	—		7,215
Total leasing commissions and tenant improvement costs(3)	$	31	$	8,680
Leasing commission costs per square foot(3)	$	29.37	$	46.28
Tenant improvement costs per square foot(3)	—		227.86
Total leasing commissions and tenant improvement costs per square foot(3)	$	29.37	$	274.14

_______________

(1)Excludes an aggregate of 504,284 and 509,244 rentable square feet of retail space in our Manhattan office properties in 2021 and 2020, respectively. Includes the Empire State Building broadcasting licenses and observatory operations.

(2)Presents a renewed and expansion lease as one lease signed.

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

(4)Includes an aggregate of 504,284 and 509,244 rentable square feet of retail space in our Manhattan office properties in 2021 and 2020, respectively. Excludes the Empire State Building broadcasting licenses and observatory operations.

	Three Months Ended March 31,
	2021		2020
Total Portfolio
Capital expenditures (1)	$	3,662	$	13,933

_______________

(1)Excludes tenant improvements and leasing commission costs.

As of March 31, 2021, we expect to incur additional costs relating to obligations under existing lease agreements of approximately $99.3 million for tenant improvements and leasing commissions. We intend to fund the tenant improvements and leasing commission costs through a combination of operating cash flow, cash on hand, additional property level mortgage financings and borrowings under the unsecured revolving credit facility.

Capital expenditures are considered part of both our short-term and long-term liquidity requirements. We intend to fund capital improvements through a combination of operating cash flow, cash on hand and borrowings under the unsecured revolving credit facility.

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Contractual Obligations

Refer to our Annual Report on Form 10-K for the year ended December 31, 2020 for a discussion of our contractual obligations. There have been no material changes, outside the ordinary course of business, to these contractual obligations during the three months ended March 31, 2021.

Off-Balance Sheet Arrangements

As of March 31, 2021, we did not have any off-balance sheet arrangements.

Distribution Policy

In order to qualify as a REIT, we must distribute to our securityholders, on an annual basis, at least 90% of our REIT taxable income, determined without regard to the deduction for dividends paid and excluding net capital gains. In addition, we will be subject to U.S. federal income tax at regular corporate rates to the extent that we distribute less than 100% of our net taxable income (including net capital gains) and will be subject to a 4% nondeductible excise tax on the amount, if any, by which our distributions in any calendar year are less than a minimum amount specified under U.S. federal income tax laws. We intend to distribute our net income to our securityholders in a manner intended to satisfy the REIT 90% distribution requirement and to avoid U.S. federal income tax liability on our income and the 4% nondeductible excise tax.

Before we pay any distribution, whether for U.S. federal income tax purposes or otherwise, we must first meet both our operating requirements and obligations to make payments of principal and interest, if any. However, under some circumstances, we may be required to use cash reserves, incur debt or liquidate assets at rates or times that we regard as unfavorable or make a taxable distribution of our shares in order to satisfy the REIT 90% distribution requirement and to avoid U.S. federal income tax and the 4% nondeductible excise tax in that year.

In 2020, we had a unique situation whereby we had no requirement to pay a dividend beyond the quarterly dividends paid in the first and second quarters of 2020 due to two primary factors: (i) the significant decline in revenue due to lower levels of observatory visitation, and (ii) we had a net operating loss carryforward available to reduce the amount of REIT taxable income otherwise required to be distributed by us to meet REIT requirements. After careful consideration and focus on long-term shareholder value creation and preservation of our balance sheet strength and flexibility, our management and the Board of Directors concluded the best course of action was to temporarily suspend its quarterly dividend and to activate our share repurchase program. During August 2020, we announced the suspension of our third and fourth quarter 2020 dividends to holders of our Class A common stock and Class B common stock and to holders of Empire State Realty OP, L.P.’s Series ES, Series 250 and Series 60 operating partnership units and Series PR operating partnership units. During December 2020, we announced the continued dividend suspension for the first and second quarters of 2021. The Board of Directors will continue its regular review of its dividend and capital allocation policies at each Board meeting.

As of March 31, 2021, Empire State Realty Trust, Inc. had net operating loss ("NOL") carryforwards that may be used in the future to reduce the amount otherwise required to be distributed by us to meet REIT requirements. However, for federal income tax purposes, the NOL will not be able to offset more than 80% of our REIT taxable income and, therefore, may not be able to reduce the amount required to be distributed by us to meet REIT requirements to zero, except for the tax year ended December 31, 2020, of which we were able to offset 100% of our REIT taxable income in accordance with the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The federal NOL may be carried forward indefinitely. Other limitations may apply to our ability to use our NOL to offset taxable income.

Stock and Publicly Traded Operating Partnership Unit Repurchase Program

    Our Board of Directors authorized the repurchase of up to $500 million of our Class A common stock and the Operating Partnership’s Series ES, Series 250 and Series 60 operating partnership units through December 31, 2021. Under the program, we may purchase our Class A common stock and the Operating Partnership’s Series ES, Series 250 and Series 60 operating partnership units 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 us at our discretion and will be subject to stock price, availability, trading volume and general market conditions. The authorization does not obligate us to acquire any particular amount of securities, and the program may be suspended or discontinued at our discretion without prior notice.

    The following table summarizes our purchases of equity securities in each of the three months ended March 31, 2021:

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Period	Total Number of Shares Purchased	Weighted Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plan	Maximum Approximate Dollar Value Available for Future Purchase (in thousands)
January 2021	337,339	$	9.17	337,339	$	496,908
February 2021	45,732	$	9.65	45,732	$	496,467
March 2021	—	$	—	—	$	496,467

Cash Flows

Comparison of Three Months Ended March 31, 2021 to the Three Months Ended March 31, 2020

Net cash. Cash and cash equivalents and restricted cash were $607.4 million and $1,045.9 million, respectively, as of March 31, 2021 and 2020. The decrease was primarily due to a $550.0 million draw on the unsecured revolving credit facility in March 2020 which was subsequently repaid in September 2020.

Operating activities. Net cash provided by operating activities increased by $8.6 million to $73.4 million for the three months ended March 31, 2021 compared to $64.8 million for the three months ended March 31, 2020, primarily due to changes in working capital.

Investing activities. Net cash used in investing activities decreased by $19.8 million to $20.8 million for the three months ended March 31, 2021 compared to $40.6 million for the three months ended March 31, 2020, due to lower capital expenditures.

Financing activities. Net cash provided by financing activities decreased by $763.2 million to $13.1 million used in financing activities for the three months ended March 31, 2021 compared to $750.1 million provided by financing activities for the three months ended March 31, 2020, primarily due to $850.0 million of net proceeds from issuance of debt, partially offset by higher repurchases of common shares of $59.1 million and dividends and distributions of $31.6 million which occurred in the three months ended March 31, 2020.

Net Operating Income ("NOI")

    Our financial reports include a discussion of property net operating income, or 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 and 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.

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    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 and discussions elsewhere in this Management’s Discussion and Analysis of Financial Condition and Results of Operations regarding the components of net income that are eliminated in the calculation of NOI. 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.

The following table presents a reconciliation of our net income, the most directly comparable GAAP measure, to NOI for the periods presented (amounts in thousands):

	Three Months Ended March 31,
	2021		2020
	(unaudited)
Net income (loss)	$	(3,191)	$	8,288
Add:
General and administrative expenses	13,853		15,951
Depreciation and amortization	44,457		46,093
Interest expense	23,768		19,704
Income tax (benefit)	(2,106)		(382)
Less:
Third-party management and other fees	(276)		(346)
Interest income	(122)		(637)
Net operating income	$	76,383	$	88,671
Other Net Operating Income Data
Straight-line rental revenue	$	6,347	$	8,193
Net increase in rental revenue from the amortization of above-and below-market lease assets and liabilities	$	654	$	908
Amortization of acquired below-market ground leases	$	1,958	$	1,958

Funds from Operations ("FFO")

    We present below a discussion of 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 write-off 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 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

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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: IPO litigation expense, severance expenses 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 items associated with its IPO and formation transactions and other non-recurring items. There can be no assurance that Core FFO presented by the company is comparable to similarly titled measures of other REITs. Core FFO does not represent cash generated from operating activities and should not be considered as an alternative to net income (loss) determined in accordance with GAAP or to cash flow from operating activities determined in accordance with GAAP. Core FFO is not indicative of cash available to fund ongoing cash needs, including the ability to make cash distributions. In future periods, we may also exclude other items from Core FFO that we believe may help investors compare our results.

    The following table presents a reconciliation of our net income, the most directly comparable GAAP measure, to FFO, Modified FFO and Core FFO for the periods presented (amounts in thousands):

	Three Months Ended March 31,
	2021		2020
	(unaudited)
Net income (loss)	$	(3,191)	$	8,288
Private perpetual preferred unit distributions	(1,050)		(1,050)
Real estate depreciation and amortization	43,104		44,430
FFO attributable to common stockholders and non-controlled interests	38,863		51,668
Amortization of below-market ground leases	1,958		1,958
Modified FFO attributable to common stockholders and non-controlled interests	40,821		53,626
Loss on early extinguishment of debt	214		86
Core FFO attributable to common stockholders and non-controlled interests	$	41,035	$	53,712
Weighted average shares and Operating Partnership Units
Basic	277,881		292,645
Diluted	277,881		292,645

Factors That May Influence Future Results of Operations

Impact of COVID-19

    See "Overview" section.

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Leasing

     We signed 0.9 million rentable square feet of new leases, expansions and lease renewals for the year ended December 31, 2020. During the three months ended March 31, 2021, we signed 0.2 million rentable square feet of new leases, expansions and renewals.

    Due to the relatively small number of leases that are signed in any particular quarter, one or more larger leases may have a disproportionately positive or negative impact on average rent, tenant improvement and leasing commission costs for that period. As a result, we believe it is more appropriate when analyzing trends in average rent and tenant improvement and leasing commission costs to review activity over multiple quarters or years. Tenant improvement costs include expenditures for general improvements occurring concurrently with, but that are not directly related to, the cost of installing a new tenant. Leasing commission costs are similarly subject to significant fluctuations depending upon the length of leases being signed and the mix of tenants from quarter to quarter.

    As of March 31, 2021, there were approximately 1.1 million rentable square feet of space in our portfolio available to lease (excluding leases signed but not yet commenced) representing 11.3% of the net rentable square footage of the properties in our portfolio. In addition, leases representing 5.9% and 5.5% of net rentable square footage of the properties in our portfolio will expire in 2021 and in 2022, respectively. These leases are expected to represent approximately 6.0% and 6.5%, respectively, of our annualized rent for such periods. Our revenues and results of operations can be impacted by expiring leases that are not renewed or re-leased or that are renewed or re-leased at base rental rates equal to, above or below the current average base rental rates. Further, our revenues and results of operations can also be affected by the costs we incur to re-lease available space, including payment of leasing commissions, redevelopments and build-to-suit remodeling that may not be borne by the tenant.

    Despite the challenge of the uncertain near-term environment, we continue to believe that as we have largely completed the redevelopment and repositioning of our properties we will, over the long-term, experience increased occupancy levels and rents. Over the short-term, as we renovate and reposition our properties, including aggregating smaller spaces to offer large blocks of space, we may experience lower occupancy levels as a result of having to relocate tenants to alternative space and the strategic expiration of existing leases. We believe that despite the short-term lower occupancy levels we may experience, we will continue to experience increased rental revenues as a result of the increased rents which we expect to obtain following the redevelopment and repositioning of our properties.

Observatory Operations

    On March 16, 2020, we complied with governmental mandates regarding the closing of non-essential businesses in response to the COVID-19 pandemic and closed the Empire State Building Observatory. The observatory was closed for the entirety of the second quarter 2020 and reopened the 86th floor observation deck on July 20, 2020 with new protocols and processes under New York State's Phase 4's Low-Risk Outdoor Arts and Entertainment guidelines. The 102nd floor observation deck reopened on August 24, 2020.

    The observatory hosted approximately 51,000 visitors in the first quarter of 2021, compared to 55,000 visitors in the fourth quarter of 2020 and visitors of 422,000 visitors in the first quarter of 2020. The first quarter is historically the seasonally lightest quarter for the observatory due to the winter weather conditions. In spite of the ongoing nature of international, national, and local travel restrictions and quarantines, the observatory has seen steady, weekly increases in visitors. Our return of attendance to pre-COVID-19 levels is closely tied to national and international travel trends and these remain adversely impacted by developments around the COVID-19 pandemic.    

    Observatory revenues for the three months ended March 31, 2021 were $2.6 million, driven by low visitation levels. Observatory revenue included $0.1 million of deferred revenue from unused tickets. Observatory expenses were $4.6 million for the three months ended March 31, 2021.

    Observatory revenues and admissions are dependent upon the following: (i) the number of tourists (domestic and international) who come to New York City and visit the observatory, as well as any related tourism trends; (ii) the prices per admission that can be charged; (iii) seasonal trends affecting the number of visitors to the observatory; (iv) competition, in particular from other new and existing observatories; and (v) weather trends.

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Critical Accounting Estimates

    Refer to our Annual Report on Form 10-K for the year ended December 31, 2020 for a discussion of our critical accounting estimates. There were no material changes to our critical accounting estimates disclosed in our Annual Report on Form 10-K for the year ended December 31, 2020.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Our future income, cash flows and fair values relevant to financial instruments are dependent upon prevalent market interest rates. Market risk refers to the risk of loss from adverse changes in market prices and interest rates. One of the principal market risks facing us is interest rate risk on our variable rate indebtedness. As of March 31, 2021, our floating rate debt of $125.0 million represented 2.3% of our total enterprise value.

Subject to maintaining our qualification as a REIT for U.S. federal income tax purposes, we may mitigate the risk of interest rate volatility through the use of hedging instruments, such as interest rate swap agreements and interest rate cap agreements. Our primary objectives when undertaking hedging transactions and derivative positions will be to reduce our floating rate exposure and to fix a portion of the interest rate for anticipated financing and refinancing transactions. This in turn will reduce the risk that the variability of cash flows will impose on floating rate debt. However, we can provide no assurances that our efforts to manage interest rate volatility will successfully mitigate the risks of such volatility on our portfolio. We are not subject to foreign currency risk.

We are exposed to interest rate changes primarily on our unsecured revolving credit facility and debt refinancings. Our objectives with respect to interest rate risk are to limit the impact of interest rate changes on operations and cash flows, and to lower our overall borrowing costs. To achieve these objectives, we may borrow at fixed rates and may enter into derivative financial instruments such as interest rate swaps or caps in order to mitigate our interest rate risk on a related floating rate financial instrument. We do not enter into derivative or interest rate transactions for speculative purposes.

    As of March 31, 2021, we have an interest rate LIBOR swap agreement with an aggregate notional value of $265.0 million, which fixes the LIBOR interest rate at 2.1485% and matures on August 24, 2022. This interest rate swap has been designated as a cash flow hedge and is deemed highly effective with a fair value of $(7.5) million which is included in accounts payable and accrued expenses on the condensed consolidated balance sheet as of March 31, 2021.

Based on our variable balances, interest expense would have increased by approximately $0.3 million for the three months ended March 31, 2021, if short-term interest rates had been 1% higher. As of March 31, 2021, the weighted average interest rate on the $2.0 billion of fixed-rate indebtedness outstanding was 3.91% per annum, with maturities at various dates through March 17, 2035.

As of March 31, 2021, the fair value of our outstanding debt was approximately $2.1 billion, which was approximately $12.7 million more than the historical book value as of such date. Interest risk amounts were determined by considering the impact of hypothetical interest rates on our financial instruments. These analyses do not consider the effect of any change in overall economic activity that could occur in that environment. Further, in the event of a change of that magnitude, we may take actions to further mitigate our exposure to the change. However, due to the uncertainty of the specific actions that would be taken and their possible effects, these analyses assume no changes in our financial structure.

On March 5, 2021, the Financial Conduct Authority (“FCA”) announced that USD LIBOR will no longer be published after June 30, 2023. This announcement has several implications, including setting the spread that may be used to automatically convert contracts from LIBOR to the Secured Overnight Financing Rate ("SOFR"). Additionally, banking regulators are encouraging banks to discontinue new LIBOR debt issuances by December 31, 2021.

    We anticipate that LIBOR will continue to be available at least until June 30, 2023. Any changes adopted by the FCA or other governing bodies in the method used for determining LIBOR may result in a sudden or prolonged increase or decrease in reported LIBOR. If that were to occur, our interest payments could change. In addition, uncertainty about the extent and manner of future changes may result in interest rates and/or payments that are higher or lower than if LIBOR were to remain available in its current form.

We have contracts that are indexed to LIBOR and are monitoring and evaluating the related risks, which include interest on loans and amounts received and paid on derivative instruments. These risks arise in connection with transitioning contracts to an alternative rate, including any resulting value transfer that may occur, and are likely to vary by contract. The value of loans or derivative instruments tied to LIBOR, as well as interest rates on our unsecured revolving credit facility and our unsecured term loan facilities and the swap rate for our interest rate swap, may also be impacted if LIBOR is limited or discontinued. For some instruments the method of transitioning to an alternative reference rate may be challenging, especially if we cannot agree with the respective counterparty about how to make the transition.

While we expect LIBOR to be available in substantially its current form until at least the end of June 30, 2023, it is possible that LIBOR will become unavailable prior to that point. This could result, for example, if sufficient banks decline to make submissions to the LIBOR administrator. In that case, the risks associated with the transition to an alternative reference rate will be accelerated and magnified.

Alternative rates and other market changes related to the replacement of LIBOR, including the introduction of

43

financial products and changes in market practices, may lead to risk modeling and valuation challenges, such as adjusting interest rate accrual calculations and building a term structure for an alternative rate.

The introduction of an alternative rate also may create additional basis risk and increased volatility as alternative rates are phased in and utilized in parallel with LIBOR.

Adjustments to systems and mathematical models to properly process and account for alternative rates will be required, which may strain the model risk management and information technology functions and result in substantial incremental costs for us.

Our exposures to market risk have not changed materially since December 31, 2020.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

    We maintain disclosure controls and procedures (as such term is defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) that are designed to ensure that information required to be disclosed in our reports under the Exchange Act is processed, recorded, summarized and reported within the time periods specified in the SEC’s rules and regulations and that such information is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

    As of March 31, 2021, the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer, regarding the effectiveness of our disclosure controls and procedures at the end of the period covered by this report. Based on the foregoing, our Chief Executive Officer and Chief Financial Officer concluded, as of that time, that our disclosure controls and procedures were effective in ensuring that information required to be disclosed by us in reports filed or submitted under the Exchange Act (i) is processed, recorded, summarized and reported within the time periods specified in the SEC’s rules and forms and (ii) is accumulated and communicated to our management, including our Chief Executive Officer and our Chief Financial Officer, as appropriate to allow for timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

    No changes to our internal control over financial reporting were identified in connection with the evaluation referenced above that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

    See Note 8 to the Notes to Condensed Consolidated Financial Statements for a description of legal proceedings.

ITEM 1A. RISK FACTORS

    There have been no material changes to the risk factors included in the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2020, except as disclosed below.

We may incur significant costs to comply with environmental laws, in particular New York City’s Local Law 97.

We may become subject to new compliance requirements and/or new costs or taxes associated with natural resource or energy usage and related emissions (such as a “carbon tax”), which could increase our operating costs. In particular, as the owner of large commercial buildings in New York City, we are subject to Local Law 97 passed by the New York City Council in April 2019, which for each such building establishes annual limits for greenhouse gas emissions, requires yearly emissions reports beginning in May 2025, and imposes penalties for emissions above such limits. While we are actively working to reduce our carbon emissions, there can be no assurance that we will be able to operate within the limits of Local Law 97, or that the costs of compliance and/or penalties will not be material.

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ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Recent Sales of Unregistered Securities

     None

Recent Purchases of Equity Securities

Stock and Publicly Traded Operating Partnership Unit Repurchase Program

     Our Board of Directors authorized the repurchase of up to $500 million of our Class A common stock and the Operating Partnership’s Series ES, Series 250 and Series 60 operating partnership units through December 31, 2021.     Under the program, we may purchase our Class A common stock and the Operating Partnership’s Series ES, Series 250 and Series 60 operating partnership units 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 us at our discretion and will be subject to stock price, availability, trading volume and general market conditions. The authorization does not obligate us to acquire any particular amount of securities, and the program may be suspended or discontinued at our discretion without prior notice.

     The following table summarizes our purchases of equity securities in each of the three months ended March 31, 2021:

Period	Total Number of Shares Purchased	Weighted Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plan	Maximum Approximate Dollar Value Available for Future Purchase (in thousands)
January 2021	337,339	$	9.17	337,339	$	496,908
February 2021	45,732	$	9.65	45,732	$	496,467
March 2021	—	$	—	—	$	496,467

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

    None

ITEM 4. MINE SAFETY DISCLOSURES

    Not Applicable

ITEM 5. OTHER INFORMATION

    None

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ITEM 6. EXHIBITS

Exhibit No.	Description
10.1	Second Amendment to Credit Agreement dated March 31, 2021, among Empire State Realty OP, L.P., as borrower, Empire State Realty Trust, Inc., the subsidiary guarantor parties thereto, Bank of America, N.A., as administrative agent, and the lenders and letter of credit issuers party thereto, incorporated by reference to Exhibit 10.1 to the Registrants's Form 8-K filed with the SEC on April 1, 2021.
31.1*	Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of Principal Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Certification of Chief Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*	Certification of Principal Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH*	XBRL Taxonomy Extension Schema Document
101.CAL*	XBRL Taxonomy Extension Calculation Document
101.DEF*	XBRL Taxonomy Extension Definitions Document
101.LAB*	XBRL Taxonomy Extension Labels Document
101.PRE*	XBRL Taxonomy Extension Presentation Document
Notes:
* Filed herewith.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

EMPIRE STATE REALTY TRUST, INC.

Date: May 7, 2021                            By:/s/ Christina Chiu

                                    Executive Vice President and

                                    Chief Financial Officer

                                    (Principal Financial Officer)

Date: May 7, 2021                         By:/s/ Stephen V. Horn

Senior Vice President, Chief Accounting

Officer

(Principal Accounting Officer)

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EX-31.1

EXHIBIT 31.1

Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Anthony E. Malkin, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q of Empire State Realty Trust, Inc.;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.    Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: May 7, 2021 By: /s/ Anthony E. Malkin
Anthony E. Malkin Chairman, President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Christina Chiu, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q of Empire State Realty Trust, Inc.;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.    Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: May 7, 2021 By: /s/ Christina Chiu
Christina Chiu Executive Vice President and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to 18 U.S.C. Section 1350, adopted pursuant to Section 906 of The Sarbanes-Oxley Act of 2002, the undersigned Chief Executive Officer of Empire State Realty Trust, Inc. (the "Company"), hereby certifies, to his knowledge that the Quarterly Report on Form 10-Q for the period ended March 31, 2021 (the "Report"), as filed with the Securities and Exchange Commission on the date hereof, fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 7, 2021 By: /s/ Anthony E. Malkin
Anthony E. Malkin Chairman, President and Chief Executive Officer

EX-32.2

EXHIBIT 32.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to 18 U.S.C. Section 1350, adopted pursuant to Section 906 of The Sarbanes-Oxley Act of 2002, the undersigned, Executive Vice President and Chief Financial Officer of Empire State Realty Trust, Inc. (the "Company"), hereby certifies, to her knowledge that the Quarterly Report on Form 10-Q for the period ended March 31, 2021 (the "Report"), as filed with the Securities and Exchange Commission on the date hereof, fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 7, 2021 By: /s/ Christina Chiu
Christina Chiu Executive Vice President and Chief Financial Officer

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Cover Page - shares	3 Months Ended
	Mar. 31, 2021	Apr. 27, 2021
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2021
Document Transition Report	false
Entity File Number	001-36105
Entity Registrant Name	EMPIRE STATE REALTY TRUST, INC.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	37-1645259
Entity Address, Address Line One	111 West 33rd Street
Entity Address, Address Line Two	12th Floor
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10120
City Area Code	212
Local Phone Number	850-2600
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001541401
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Class A Common Stock
Document Information [Line Items]
Title of 12(b) Security	Class A Common Stock, par value $0.01 per share
Trading Symbol	ESRT
Security Exchange Name	NYSE
Entity Common Stock, Shares Outstanding		171,931,429
Class B Common Stock
Document Information [Line Items]
Title of 12(b) Security	Class B Common Stock, par value $0.01 per share
Entity Common Stock, Shares Outstanding		1,003,441
No Trading Symbol Flag	true

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Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Commercial real estate properties, at cost:
Land	$ 201,196	$ 201,196
Development costs	8,064	7,966
Building and improvements	2,943,148	2,924,804
Commercial real estate properties, at cost	3,152,408	3,133,966
Less: accumulated depreciation	(973,940)	(941,612)
Commercial real estate properties, net	2,178,468	2,192,354
Cash and cash equivalents	567,102	526,714
Restricted cash	40,295	41,225
Tenant and other receivables	16,749	21,541
Deferred rent receivables	228,117	222,508
Prepaid expenses and other assets	50,427	77,182
Deferred costs, net	207,058	203,853
Acquired below-market ground leases, net	342,777	344,735
Right of use assets	29,051	29,104
Goodwill	491,479	491,479
Total assets	4,151,523	4,150,695
Liabilities:
Mortgage notes payable, net	775,276	775,929
Senior unsecured notes, net	973,214	973,159
Unsecured term loan facilities, net	387,811	387,561
Unsecured revolving credit facility	0	0
Accounts payable and accrued expenses	102,381	103,203
Acquired below-market leases, net	30,112	31,705
Ground lease liabilities	29,051	29,104
Deferred revenue and other liabilities	94,625	88,319
Tenants’ security deposits	27,858	30,408
Total liabilities	2,420,328	2,419,388
Commitments and contingencies
Empire State Realty Trust, Inc. stockholders' equity:
Preferred stock, $0.01 par value per share, 50,000,000 shares authorized, none issued or outstanding	0	0
Additional paid-in capital	1,147,588	1,147,527
Accumulated other comprehensive loss	(26,544)	(28,320)
Retained deficit	(69,272)	(65,673)
Total Empire State Realty Trust, Inc. stockholders' equity	1,053,495	1,055,249
Non-controlling interests in operating partnership	647,760	646,118
Total equity	1,731,195	1,731,307
Total liabilities and equity	4,151,523	4,150,695
Class A Common Stock
Empire State Realty Trust, Inc. stockholders' equity:
Common stock	1,713	1,705
Class B Common Stock
Empire State Realty Trust, Inc. stockholders' equity:
Common stock	10	10
Private Perpetual Preferred Units, Series 2019
Empire State Realty Trust, Inc. stockholders' equity:
Private perpetual preferred units, issued, value	21,936	21,936
Private Perpetual Preferred Units, Series 2014
Empire State Realty Trust, Inc. stockholders' equity:
Private perpetual preferred units, issued, value	$ 8,004	$ 8,004

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Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2021	Dec. 31, 2020
Equity:
Preferred stock, par value (in USD per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Class A Common Stock
Common stock, par value (in USD per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	400,000,000	400,000,000
Common stock, shares issued (in shares)	171,327,270	170,555,274
Common stock, shares outstanding (in shares)	171,327,270	170,555,274
Class B Common Stock
Common stock, par value (in USD per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, shares issued (in shares)	1,004,601	1,010,130
Common stock, shares outstanding (in shares)	1,004,601	1,010,130
Private Perpetual Preferred Units, Series 2014
Private perpetual preferred units, per unit liquidation preference (in USD per share)	$ 16.62	$ 16.62
Private perpetual preferred units, issued (in shares)	1,560,360	1,560,360
Private perpetual preferred units, outstanding (in shares)	1,560,360	1,560,360
Private Perpetual Preferred Units, Series 2019
Private perpetual preferred units, per unit liquidation preference (in USD per share)	$ 13.52	$ 13.52
Private perpetual preferred units, issued (in shares)	4,664,038	4,664,038
Private perpetual preferred units, outstanding (in shares)	4,664,038	4,664,038

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Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenues:
Rental revenue	$ 140,231	$ 148,113
Observatory revenue	2,603	19,544
Lease termination fees	1,289	211
Third-party management and other fees	276	346
Other revenue and fees	905	2,010
Total revenues	145,304	170,224
Operating expenses:
Property operating expenses	30,279	41,468
Ground rent expenses	2,331	2,331
General and administrative expenses	13,853	15,951
Observatory expenses	4,588	8,154
Real estate taxes	31,447	29,254
Depreciation and amortization	44,457	46,093
Total operating expenses	126,955	143,251
Total operating income	18,349	26,973
Other income (expense):
Interest income	122	637
Interest expense	(23,554)	(19,618)
Loss on early extinguishment of debt	(214)	(86)
Income (loss) before income taxes	(5,297)	7,906
Income tax benefit	2,106	382
Net income (loss)	(3,191)	8,288
Private perpetual preferred unit distributions	(1,050)	(1,050)
Net (income) loss attributable to non-controlling interests	1,620	(2,743)
Net income (loss) attributable to common stockholders	$ (2,621)	$ 4,495
Total weighted average shares:
Basic (in shares)	171,735	181,741
Diluted (in shares)	277,881	292,645
Earnings (loss) per share attributable to common stockholders:
Basic (in USD per share)	$ (0.02)	$ 0.02
Diluted (in USD per share)	(0.02)	0.02
Dividends per share (in USD per share)	$ 0	$ 0.105

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Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (3,191)	$ 8,288
Other comprehensive income (loss):
Unrealized gain (loss) on valuation of interest rate swap agreements	59	(17,695)
Less: amount reclassified into interest expense	2,869	796
Other comprehensive income (loss)	2,928	(16,899)
Comprehensive loss	(263)	(8,611)
Net (income) loss attributable to non-controlling interests and private perpetual preferred unitholders	570	(3,793)
Other comprehensive (income) loss attributable to non-controlling interests	(1,114)	6,405
Comprehensive loss attributable to common stockholders	$ (807)	$ (5,999)

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Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Class A Common Stock	Class B Common Stock	Common Stock Class A Common Stock	Common Stock Class B Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings (Deficit)	Total Stockholders' Equity	Non-controlling Interests	Private Perpetual Preferred Units
Beginning balance (in shares) at Dec. 31, 2019				180,878,000	1,017,000
Beginning balance at Dec. 31, 2019	$ 1,947,913			$ 1,809	$ 10	$ 1,232,433	$ (21,496)	$ 15,764	$ 1,228,520	$ 690,242	$ 29,151
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of private perpetual in exchange for common shares										(789)	789
Conversion of operating partnership units and Class B shares to Class A shares (in shares)				1,660,000	(2,000)
Conversion of operating partnership units and Class B shares to Class A shares	0			$ 17		7,661	(116)		7,562	(7,562)
Repurchases of common shares (in shares)				(6,571,000)
Repurchases of common shares	(62,666)			$ (65)		(44,363)		(18,238)	(62,666)
Equity compensation:
LTIP units	5,737									5,737
Restricted stock, net of forfeitures (in shares)				146,000
Restricted stock, net of forfeitures	154					154			154
Dividends and distributions	(32,651)							(18,987)	(18,987)	(12,614)	(1,050)
Net income (loss)	8,288							4,495	4,495	2,743	1,050
Other comprehensive income (loss)	(16,899)						(10,494)		(10,494)	(6,405)
Ending balance (in shares) at Mar. 31, 2020				176,113,000	1,015,000
Ending balance at Mar. 31, 2020	1,849,876			$ 1,761	$ 10	1,195,885	(32,106)	(16,966)	1,148,584	671,352	29,940
Beginning balance (in shares) at Dec. 31, 2020		170,555,274	1,010,130	170,555,000	1,010,000
Beginning balance at Dec. 31, 2020	1,731,307			$ 1,705	$ 10	1,147,527	(28,320)	(65,673)	1,055,249	646,118	29,940
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Conversion of operating partnership units and Class B shares to Class A shares (in shares)				1,071,000	(5,000)
Conversion of operating partnership units and Class B shares to Class A shares	0			$ 11		2,689	(38)		2,662	(2,662)
Repurchases of common shares (in shares)				(383,000)
Repurchases of common shares	(3,533)			$ (4)		(2,551)		(978)	(3,533)
Equity compensation:
LTIP units	4,810									4,810
Restricted stock, net of forfeitures (in shares)				84,000
Restricted stock, net of forfeitures	(76)			$ 1		(77)			(76)
Dividends and distributions	(1,050)										(1,050)
Net income (loss)	(3,191)							(2,621)	(2,621)	(1,620)	1,050
Other comprehensive income (loss)	2,928						1,814		1,814	1,114
Ending balance (in shares) at Mar. 31, 2021		171,327,270	1,004,601	171,327,000	1,005,000
Ending balance at Mar. 31, 2021	$ 1,731,195			$ 1,713	$ 10	$ 1,147,588	$ (26,544)	$ (69,272)	$ 1,053,495	$ 647,760	$ 29,940

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash Flows From Operating Activities
Net income (loss)	$ (3,191)	$ 8,288
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	44,457	46,093
Amortization of non-cash items within interest expense	2,733	1,052
Amortization of acquired above- and below-market leases, net	(654)	(908)
Amortization of acquired below-market ground leases	1,958	1,958
Straight-lining of rental revenue	(6,347)	(8,193)
Equity based compensation	4,734	5,891
Loss on early extinguishment of debt	214	86
Increase (decrease) in cash flows due to changes in operating assets and liabilities:
Security deposits	(2,550)	(17)
Tenant and other receivables	4,792	2,874
Deferred leasing costs	(3,243)	(4,118)
Prepaid expenses and other assets	26,755	24,869
Accounts payable and accrued expenses	(3,302)	(5,261)
Deferred revenue and other liabilities	7,044	(7,840)
Net cash provided by operating activities	73,400	64,774
Cash Flows From Investing Activities
Development costs	(98)	(811)
Additions to building and improvements	(20,714)	(39,799)
Net cash used in investing activities	(20,812)	(40,610)
Cash Flows From Financing Activities
Repayment of mortgage notes payable	(1,008)	(970)
Proceeds from unsecured senior notes	0	175,000
Proceeds from unsecured term loan	0	175,000
Repayment of unsecured term loan	0	(50,000)
Proceeds from unsecured revolving credit facility	0	550,000
Deferred financing costs	(7,539)	(3,610)
Repurchases of common shares	(3,533)	(62,666)
Private perpetual preferred unit distributions	(1,050)	(1,050)
Dividends paid to common stockholders	0	(18,987)
Distributions paid to non-controlling interests in the operating partnership	0	(12,614)
Net cash (used in) provided by financing activities	(13,130)	750,103
Net increase in cash and cash equivalents and restricted cash	39,458	774,267
Cash and cash equivalents and restricted cash—beginning of period	567,939	271,597
Cash and cash equivalents and restricted cash—end of period	607,397	1,045,864
Reconciliation of Cash and Cash Equivalents and Restricted Cash:
Cash and cash equivalents at beginning of period	526,714	233,946
Restricted cash at beginning of period	41,225	37,651
Cash and cash equivalents at end of period	567,102	1,008,983
Restricted cash at end of period	40,295	36,881
Cash and cash equivalents and restricted cash	607,397	1,045,864
Supplemental disclosures of cash flow information:
Cash paid for interest	19,239	17,081
Cash paid for income taxes	13	898
Non-cash investing and financing activities:
Building and improvements included in accounts payable and accrued expenses	60,536	78,107
Write-off of fully depreciated assets	4,853	13,932
Derivative instruments at fair values included in accounts payable and accrued expenses	7,450	30,387
Conversion of operating partnership units and Class B shares to Class A shares	2,662	7,562
Issuance of Series 2019 private perpetual preferred in exchange for common shares	$ 0	$ 789

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Description of Business and Organization

3 Months Ended

Mar. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Description of Business and Organization

Description of Business and Organization

    As used in these condensed consolidated financial statements, unless the context otherwise requires, “we,” “us,” “our,” the “company,” and "ESRT" mean Empire State Realty Trust, Inc. and its consolidated subsidiaries.

    We are a self-administered and self-managed 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.

    As of March 31, 2021, our total portfolio contained 10.1 million rentable square feet of office and retail space. We owned 14 office properties (including three long-term ground leasehold interests) encompassing approximately 9.4 million rentable square feet of office space. Nine of these properties are located in the midtown Manhattan market and aggregate approximately 7.6 million rentable square feet of office space, including the Empire State Building. Our Manhattan office properties also contain an aggregate of approximately 0.5 million rentable square feet of retail space on their ground floor and/or contiguous levels. Our remaining five office properties are located in Fairfield County, Connecticut and Westchester County, New York, encompassing in the aggregate approximately 1.8 million rentable square feet. The majority of square footage for these five properties is located in densely populated metropolitan communities with immediate access to mass transportation. Additionally, we have entitled land at the Stamford Transportation Center in Stamford, Connecticut, adjacent to one of our office properties, that will support the development of an approximately 0.4 million rentable square foot office building and garage. As of March 31, 2021, our portfolio included four standalone retail properties located in Manhattan and two standalone retail properties located in the city center of Westport, Connecticut, encompassing approximately 0.2 million rentable square feet in the aggregate.

     We were organized as a Maryland corporation on July 29, 2011 and commenced operations upon completion of our initial public offering and related formation transactions on October 7, 2013. Our operating partnership, Empire State Realty OP, L.P. (the "Operating Partnership"), holds substantially all of our assets and conducts substantially all of our business. As of March 31, 2021, we owned approximately 60.3% of the aggregate operating partnership units in the Operating Partnership. We, as the sole general partner in the Operating Partnership, have responsibility and discretion in the management and control of the Operating Partnership, and the limited partners in the Operating Partnership, in such capacity, have no authority to transact business for, or participate in the management activities of, the Operating Partnership. Accordingly, the Operating Partnership has been consolidated by us. We elected to be taxed as a REIT and operate in a manner that we believe allows us to qualify as a REIT for federal income tax purposes commencing with our taxable year ended December 31, 2013.

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Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

    There have been no material changes to the summary of significant accounting policies included in the section entitled "Summary of Significant Accounting Policies" in our December 31, 2020 Annual Report on Form 10-K.

Basis of Quarterly Presentation and Principles of Consolidation

    The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), for interim financial information, and with the rules and regulations of the Securities and Exchange Commission (the "SEC"). Accordingly, certain information and footnote disclosures required by GAAP for complete financial statements have been condensed or omitted in accordance with such rules and regulations. In the opinion of management, all adjustments and eliminations (including intercompany balances and transactions), consisting of normal recurring adjustments, considered necessary for the fair presentation of the financial statements have been included.

    The results of operations for the periods presented are not necessarily indicative of the results that may be expected for the corresponding full years. These financial statements should be read in conjunction with the financial statements and accompanying notes included in the financial statements for the year ended December 31, 2020 contained in our Annual Report on Form 10-K. We do not consider our business to be subject to material seasonal fluctuations, except that our observatory business is subject to tourism seasonality and currently impacted by the Coronavirus 19 ("COVID-19") pandemic. Historically, prior to the outbreak of the COVID-19 pandemic, approximately 16.0% to 18.0% of our annual observatory revenue was

realized in the first quarter, 26.0% to 28.0% was realized in the second quarter, 31.0% to 33.0% was realized in the third quarter and 23.0% to 25.0% was realized in the fourth quarter.

    We consolidate entities in which we have a controlling financial interest.  In determining whether we have a controlling financial interest in a partially owned entity and the requirement to consolidate the accounts of that entity, we consider factors such as ownership interest, board representation, management representation, authority to make decisions, and contractual and substantive participating rights of the partners/members.  For variable interest entities ("VIE"), we consolidate the entity if we are deemed to have a variable interest in the entity and through that interest we are deemed the primary beneficiary. The primary beneficiary of a VIE is the entity that has (i) the power to direct the activities that most significantly impact the entity's economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE. The primary beneficiary is required to consolidate the VIE. The Operating Partnership is a variable interest entity of our company, Empire State Realty Trust, Inc.  As the Operating Partnership is already consolidated in the financial statements of Empire State Realty Trust, Inc., the identification of this entity as a variable interest entity has no impact on our consolidated financial statements.

    We will assess the accounting treatment for each investment we may have in the future. This assessment will include a review of each entity’s organizational agreement to determine which party has what rights and whether those rights are protective or participating. For all VIEs, we will review such agreements in order to determine which party has the power to direct the activities that most significantly impact the entity’s economic performance and benefit. In situations where we or our partner could approve, among other things, the annual budget, or leases that cover more than a nominal amount of space relative to the total rentable space at each property, we would not consolidate the investment as we consider these to be substantive participation rights that result in shared power of the activities that would most significantly impact the performance and benefit of such joint venture investment.

    A non-controlling interest in a consolidated subsidiary is defined as the portion of the equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. Non-controlling interests are required to be presented as a separate component of equity in the condensed consolidated balance sheets and in the condensed consolidated statements of operations by requiring earnings and other comprehensive income to be attributed to controlling and non-controlling interests.

Accounting Estimates

    The preparation of the condensed consolidated financial statements in accordance with GAAP requires management to use estimates and assumptions that in certain circumstances affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Significant items subject to such estimates and assumptions include allocation of the purchase price of acquired real estate properties among tangible and intangible assets, determination of the useful life of real estate properties and other long-lived assets, valuation and impairment analysis of commercial real estate properties, right of use assets and other long-lived and indefinite lived assets, estimate of tenant expense reimbursements, valuation of the allowance for doubtful accounts, and valuation of derivative instruments, ground lease liabilities, senior unsecured notes, mortgage notes payable, unsecured term loan and revolving credit facilities, and equity based compensation. These estimates are prepared using management’s best judgment, after considering past, current, and expected events and economic conditions. Actual results could differ from those estimates.

Recently Issued or Adopted Accounting Standards

    During April 2020, the Financial Accounting Standards Board ("FASB") staff issued a question and answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of the COVID-19 pandemic. Under existing lease guidance, the entity would have to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant, which would be accounted for under the lease modification framework, or if a lease concession was under the enforceable rights and obligations that existed in the original lease, which would be accounted for outside the lease modification framework. The Lease Modification Q&A provides entities with the option to elect to account for lease concessions as though the enforceable rights and obligations existed in the original lease. This election is only available when total cash flows resulting from the modified lease are substantially similar to the cash flows in the original lease.

    During March 2020, the FASB issued Accounting Standards Update ("ASU") 2020-04, Reference Rate Reform (Topic 848). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. During the first quarter 2020, we elected to apply the hedge accounting expedients related to probability and the

assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. We continue to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.

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Deferred Costs, Acquired Lease Intangibles and Goodwill

3 Months Ended

Mar. 31, 2021

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Deferred Costs, Acquired Lease Intangibles and Goodwill

Deferred Costs, Acquired Lease Intangibles and Goodwill

    Deferred costs, net, consisted of the following as of March 31, 2021 and December 31, 2020 (amounts in thousands):  

	March 31, 2021		December 31, 2020
Leasing costs	$	203,730	$	203,905
Acquired in-place lease value and deferred leasing costs	180,131		181,336
Acquired above-market leases	40,254		40,398
	424,115		425,639
Less: accumulated amortization	(225,967)		(223,918)
Total deferred costs, net, excluding net deferred financing costs	$	198,148	$	201,721

    At March 31, 2021 and December 31, 2020, $8.9 million and $2.1 million, respectively, of net deferred financing costs associated with the unsecured revolving credit facility was included in deferred costs, net on the condensed consolidated balance sheet.

    Amortization expense related to deferred leasing costs and acquired deferred leasing costs was $5.6 million and $5.9 million for the three months ended March 31, 2021 and 2020, respectively. Amortization expense related to acquired lease intangibles was $1.7 million and $2.0 million for the three months ended March 31, 2021 and 2020, respectively.

    Amortizing acquired intangible assets and liabilities consisted of the following as of March 31, 2021 and December 31, 2020 (amounts in thousands):

	March 31, 2021		December 31, 2020
Acquired below-market ground leases	$	396,916	$	396,916
Less: accumulated amortization	(54,139)		(52,181)
Acquired below-market ground leases, net	$	342,777	$	344,735

	March 31, 2021		December 31, 2020
Acquired below-market leases	$	(77,686)	$	(78,451)
Less: accumulated amortization	47,574		46,746
Acquired below-market leases, net	$	(30,112)	$	(31,705)

    Rental revenue related to the amortization of below-market leases, net of above-market leases, was $0.7 million and $0.9 million for the three months ended March 31, 2021 and 2020, respectively.

     As of March 31, 2021, we had goodwill of $491.5 million. Goodwill was allocated $227.5 million to the observatory reportable segment and $264.0 million to the real estate reportable segment.

    In compliance with the requirements of authorities, we closed the Empire State Building Observatory on March 16, 2020 due to the COVID-19 pandemic and it remained closed until the 86th floor observation deck was reopened on July 20, 2020. The 102nd observation deck was reopened on August 24, 2020. The closure of our Observatory and subsequent reopening under international, national, and local travel restrictions and quarantines caused us during the quarter to choose to perform an impairment test related to goodwill. We engaged a third-party valuation consulting firm to perform the valuation process. The analysis used a combination of the discounted cash flow method (a form of the income approach) utilizing Level 3 unobservable inputs and the guideline company method (a form of the market approach). Significant assumptions under the former included revenue and cost projections, weighted average cost of capital, long-term growth rate and income tax considerations while the latter included guideline company enterprise values, revenue multiples and control premium rates. Our methodology to review goodwill impairment, which included a significant amount of judgment and estimates, provided a reasonable basis to determine whether impairment had occurred. Based upon the results of the goodwill impairment test of the standalone Observatory reporting unit, which is after the intercompany rent expense paid to the Real Estate reporting unit, we

determined that the fair value of the Observatory reporting unit exceeded its carrying value by less than 10.0%.  Many of the factors employed in determining whether or not goodwill is impaired are outside of our control and it is reasonably likely that assumptions and estimates will change in future periods.  We will continue to assess the impairment of the Observatory reporting unit goodwill going forward and that continued assessment may again utilize a third-party valuation consulting firm.

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Debt

3 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

Debt

Debt

    Debt consisted of the following as of March 31, 2021 and December 31, 2020 (amounts in thousands):

	Principal Balance				As of March 31, 2021
	March 31, 2021		December 31, 2020		Stated Rate		Effective Rate(1)		Maturity Date(2)
Mortgage debt collateralized by:
Fixed rate mortgage debt
Metro Center	$	86,803	$	87,382	3.59	%	3.68	%	11/5/2024
10 Union Square	50,000		50,000		3.70	%	3.97	%	4/1/2026
1542 Third Avenue	30,000		30,000		4.29	%	4.53	%	5/1/2027
First Stamford Place(3)	180,000		180,000		4.28	%	4.71	%	7/1/2027
1010 Third Avenue and 77 West 55th Street	37,278		37,477		4.01	%	4.23	%	1/5/2028
250 West 57th Street	180,000		180,000		2.83	%	3.19	%	12/1/2030
10 Bank Street	31,795		32,025		4.23	%	4.36	%	6/1/2032
383 Main Avenue	30,000		30,000		4.44	%	4.55	%	6/30/2032
1333 Broadway	160,000		160,000		4.21	%	4.29	%	2/5/2033
Total mortgage debt	785,876		786,884
Senior unsecured notes:(4)
Series A	100,000		100,000		3.93	%	3.96	%	3/27/2025
Series B	125,000		125,000		4.09	%	4.12	%	3/27/2027
Series C	125,000		125,000		4.18	%	4.21	%	3/27/2030
Series D	115,000		115,000		4.08	%	4.11	%	1/22/2028
Series E	160,000		160,000		4.26	%	4.27	%	3/22/2030
Series F	175,000		175,000		4.44	%	4.45	%	3/22/2033
Series G	100,000		100,000		3.61	%	4.89	%	3/17/2032
Series H	75,000		75,000		3.73	%	5.00	%	3/17/2035
Unsecured term loan facility (4)	215,000		215,000		LIBOR plus 1.20%		3.56	%	3/19/2025
Unsecured revolving credit facility (4)	—		—		LIBOR plus 1.30%		—		3/31/2025
Unsecured term loan facility (4)	175,000		175,000		LIBOR plus 1.50%		3.60	%	12/31/2026
Total principal	2,150,876		2,151,884
Deferred financing costs, net	(14,575)		(15,235)
Total	$	2,136,301	$	2,136,649

______________

(1)The effective rate is the yield as of March 31, 2021 and includes the stated interest rate, deferred financing cost amortization and interest associated with variable to fixed interest rate swap agreements.

(2)Pre-payment is generally allowed for each loan upon payment of a customary pre-payment penalty.

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

(4)At March 31, 2021, we were in compliance with all debt covenants.

Principal Payments

    Aggregate required principal payments at March 31, 2021 are as follows (amounts in thousands):

Year	Amortization		Maturities		Total
2021	$	3,082	$	—	$	3,082
2022	5,628		—		5,628
2023	7,876		—		7,876
2024	7,958		77,675		85,633
2025	5,826		315,000		320,826
Thereafter	20,084		1,707,747		1,727,831
Total	$	50,454	$	2,100,422	$	2,150,876

Deferred Financing Costs

    Deferred financing costs, net, consisted of the following at March 31, 2021 and December 31, 2020 (amounts in thousands):

	March 31, 2021		December 31, 2020
Financing costs	$	42,689	$	35,365
Less: accumulated amortization	(19,202)		(17,998)
Total deferred financing costs, net	$	23,487	$	17,367

    Amortization expense related to deferred financing costs was $1.2 million and $0.9 million for the three months ended March 31, 2021 and 2020, respectively.

Unsecured Revolving Credit and Term Loan Facilities

    On March 31, 2021, through our Operating Partnership, we entered into a second amendment to an existing credit agreement ("Amended Credit Agreement") that will govern an amended senior unsecured credit facility (the “Credit Facility”) with Bank of America, N.A., as administrative agent, and Bank of America, Wells Fargo Bank, National Association, Capital One, National Association and JPMorgan Chase Bank, N.A., as co-syndication agents, and the lenders and the letter of credit issuers party thereto. The Amended Credit Agreement amends the amended and restated credit agreement dated August 29, 2017, as amended, by and among the parties named therein.

    The Credit Facility is in the initial maximum principal amount of up to $1.065 billion, which consists of a $850.0 million revolving credit facility and a $215.0 million term loan facility. We borrowed the term loan facility in full in August 2017. We may request the Credit Facility be increased through one or more increases in the revolving credit facility or one or more increases in the term loan facility or the addition of new pari passu term loan tranches, for a maximum aggregate principal amount not to exceed $1.50 billion. The Credit Facility will be used for our working capital needs and for other general corporate purposes. As of March 31, 2021, we had no borrowings under the revolving credit facility and $215.0 million under the term loan facility.

    The revolving credit facility matures on March 31, 2025. We have the option to extend the initial term for up to two additional 6-month periods, subject to certain conditions, including the payment of an extension fee equal to 0.0625% and 0.075% of the then outstanding commitments under the revolving credit facility on the first and the second extensions, respectively. The term loan facility matures on March 19, 2025. We may prepay the loans under the Credit Facility at any time in whole or in part, subject to reimbursement of the lenders’ breakage and redeployment costs in the case of prepayment of Eurodollar Rate borrowings.

    On March 19, 2020, we entered into a senior unsecured term loan facility (the “Term Loan Facility”) with Wells Fargo Bank, National Association, as administrative agent, Wells Fargo Securities, LLC as sole bookrunner, Wells Fargo Securities, LLC, Capital One, National Association, U.S. Bank National Association and SunTrust Robinson Humphrey, Inc. as Joint Lead

Arrangers, Capital One, National Association, as syndication agent, U.S. Bank National Association and Truist Bank, as documentation agents, and the lenders party thereto.

    The Term Loan Facility is in the original principal amount of $175 million which we borrowed in full at closing. We may request the Term Loan Facility be increased through one or more increases or the addition of new pari passu term loan tranches, for a maximum aggregate principal amount not to exceed $225 million. As of March 31, 2021, our borrowings amounted to $175.0 million under the Term Loan Facility.

    The Term Loan Facility matures on December 31, 2026. We may prepay loans under the Term Loan Facility at any time in whole or in part, subject to reimbursement of the lenders’ breakage and redeployment costs in the case of prepayment of Eurodollar rate borrowings and, if the prepayment occurs on or before December 31, 2021, a prepayment fee. If the prepayment occurs after December 31, 2020 but on or prior to December 31, 2021, the prepayment fee is equal to 1.0% of the principal amount prepaid.

    The terms of both the Credit Facility and the Term Loan Facility include customary covenants, including limitations on liens, investment, distributions, debt, fundamental changes, and transactions with affiliates and require certain customary financial reports. It also requires compliance with financial ratios including a maximum leverage ratio, a maximum secured leverage ratio, a minimum fixed charge coverage ratio, a minimum unencumbered interest coverage ratio, and a maximum unsecured leverage ratio. The agreement also contains customary events of default (subject in certain cases to specified cure periods), including but not limited to non-payment, breach of covenants, representations or warranties, cross defaults, bankruptcy or other insolvency events, judgments, ERISA events, invalidity of loan documents, loss of real estate investment trust qualification, and occurrence of a change of control. As of March 31, 2021, we were in compliance with the covenants under the Credit Facility and the Term Loan Facility.

Senior Unsecured Notes

    On March 17, 2020, through the Operating Partnership, we entered into an agreement to issue and sell an aggregate $175 million of senior unsecured notes, consisting of (a) $100 million aggregate principal amount of 3.61% Series G Senior Notes due March 17, 2032 (the “Series G Notes”) and (b) $75 million aggregate principal amount of 3.73% Series H Senior Notes due March 17, 2035 (the “Series H Notes”). The issue price for the Series G and H Notes was 100% of the aggregate principal amount thereof.

    The terms of the Series G and H Notes agreement include customary covenants, including limitations on liens, investment, distributions, debt, fundamental changes, and transactions with affiliates and require certain customary financial reports. It also requires compliance with financial ratios including a maximum leverage ratio, a maximum secured leverage ratio, a minimum fixed charge coverage ratio, a minimum unencumbered interest coverage ratio, and a maximum unsecured leverage ratio. The agreement also contains customary events of default (subject in certain cases to specified cure periods), including but not limited to non-payment, breach of covenants, representations or warranties, cross defaults, bankruptcy or other insolvency events, judgments, ERISA events, the occurrence of certain change of control transactions and loss of real estate investment trust qualification. As of March 31, 2021, we were in compliance with the covenants under the outstanding senior unsecured notes.

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Accounts Payable and Accrued Expenses

3 Months Ended

Mar. 31, 2021

Payables and Accruals [Abstract]

Accounts Payable and Accrued Expenses

Accounts Payable and Accrued Expenses

    Accounts payable and accrued expenses consisted of the following as of March 31, 2021 and December 31, 2020 (amounts in thousands):

	March 31, 2021		December 31, 2020
Accrued capital expenditures	$	60,536	$	58,057
Accounts payable and accrued expenses	30,032		32,309
Interest rate swap agreements liability	7,450		8,849
Accrued interest payable	3,436		3,219
Due to affiliated companies	927		769
Total accounts payable and accrued expenses	$	102,381	$	103,203

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Financial Instruments and Fair Values

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Financial Instruments and Fair Values

Financial Instruments and Fair Values

Derivative Financial Instruments

    We use derivative financial instruments primarily to manage interest rate risk and such derivatives are not considered speculative. These derivative instruments are typically in the form of interest rate swap and forward agreements and the primary objective is to minimize interest rate risks associated with investing and financing activities. The counterparties of these arrangements are major financial institutions with which we may also have other financial relationships. We are exposed to credit risk in the event of non-performance by these counterparties; however, we currently do not anticipate that any of the counterparties will fail to meet their obligations.

    We have agreements with our derivative counterparties that contain a provision where if we either default or are capable of being declared in default on any of our indebtedness, then we could also be declared in default on our derivative obligations. As of March 31, 2021, the fair value of the derivative in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to the agreement was $7.5 million. If we had breached any of these provisions at March 31, 2021, we could have been required to settle our obligation under the agreement at its termination value of $7.5 million.

    As of March 31, 2021 and December 31, 2020, we had an interest rate LIBOR swap with an aggregate notional value of $265.0 million and $265.0 million, respectively. The notional value does not represent exposure to credit, interest rate or market risks. As of March 31, 2021 and December 31, 2020, the fair value of our derivative instrument amounted to $(7.5) million and $(8.8) million, respectively, which is included in accounts payable and accrued expenses on the condensed consolidated balance sheets. This interest rate swap has been designated as a cash flow hedge and hedges the variability in future cash flows associated with our existing variable-rate term loan facilities.

    As of March 31, 2021 and 2020, our cash flow hedge is deemed highly effective and a net unrealized gain (loss) of $2.9 million and $(16.9) million for the three months ended March 31, 2021 and 2020, respectively, relating to both active and terminated hedges of interest rate risk, are reflected in the condensed consolidated statements of comprehensive income. Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on the debt. We estimate that $(11.5) million net loss of the current balance held in accumulated other comprehensive income (loss) will be reclassified into interest expense within the next 12 months.

    The table below summarizes the terms of agreements and the fair values of our derivative financial instruments as of March 31, 2021 and December 31, 2020 (dollar amounts in thousands):     

							March 31, 2021				December 31, 2020
Derivative	Notional Amount		Receive Rate	Pay Rate	Effective Date	Expiration Date	Asset		Liability		Asset		Liability
Interest rate swap	$	265,000	1 Month LIBOR	2.1485%	August 31, 2017	August 24, 2022	$	—	$	(7,450)	$	—	$	(8,849)

    The table below shows the effect of our derivative financial instruments designated as cash flow hedges on accumulated other comprehensive income (loss) for the three months ended March 31, 2021 and 2020 (amounts in thousands):    

	Three Months Ended
Effects of Cash Flow Hedges	March 31, 2021		March 31, 2020
Amount of gain (loss) recognized in other comprehensive income (loss)	$	59	$	(17,695)
Amount of gain (loss) reclassified from accumulated other comprehensive (loss) into interest expense	(2,869)		(796)

    The table below shows the effect of our derivative financial instruments designated as cash flow hedges on the condensed consolidated statements of operations for the three months ended March 31, 2021 and 2020 (amounts in thousands):

	Three Months Ended
Effects of Cash Flow Hedges	March 31, 2021		March 31, 2020
Total interest (expense) presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded	$	(23,554)	$	(19,618)
Amount of gain (loss) reclassified from accumulated other comprehensive (loss) into interest expense	(2,869)		(796)

Fair Valuation

    The estimated fair values at March 31, 2021 and December 31, 2020 were determined by management, using available market information and appropriate valuation methodologies. Considerable judgment is necessary to interpret market data and develop estimated fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts we could realize on disposition of the financial instruments. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

    The fair value of derivative instruments is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. Although the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by ourselves and our counterparties. The impact of such credit valuation adjustments, determined based on the fair value of each individual contract, was not significant to the overall valuation. As a result, all of our derivatives were classified as Level 2 of the fair value hierarchy.

    The fair value of our mortgage notes payable, senior unsecured notes - Series A, B, C, D, E, F, G and H, unsecured term loan facilities, unsecured revolving credit facility and ground lease liabilities which are determined using Level 3 inputs, are estimated by discounting the future cash flows using current interest rates at which similar borrowings could be made to us.

    The following tables summarize the carrying and estimated fair values of our financial instruments as of March 31, 2021 and December 31, 2020 (amounts in thousands):

	March 31, 2021
			Estimated Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Interest rate swap included in accounts payable and accrued expenses	$	7,450	$	7,450	$	—	$	7,450	$	—
Mortgage notes payable	775,276		772,147		—		—		772,147
Senior unsecured notes - Series A, B, C, D, E, F, G and H	973,214		986,839		—		—		986,839
Unsecured term loan facilities	387,811		390,000		—		—		390,000

    

	December 31, 2020
			Estimated Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Interest rate swap included in accounts payable and accrued expenses	$	8,849	$	8,849	$	—	$	8,849	$	—
Mortgage notes payable	775,929		808,294		—		—		808,294
Senior unsecured notes - Series A, B, C, D, E, F, G and H	973,159		1,039,857		—		—		1,039,857
Unsecured term loan facilities	387,561		390,000		—		—		390,000

    Disclosure about the fair value of financial instruments is based on pertinent information available to us as of March 31, 2021 and December 31, 2020. Although we are not aware of any factors that would significantly affect the reasonable fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since that date and current estimates of fair value may differ significantly from the amounts presented herein.

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Leases

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

Leases

Leases

Lessor    

    We lease various spaces to tenants over terms ranging from one to 21 years. Certain leases have renewal options for additional terms. The leases provide for base monthly rentals and reimbursements for real estate taxes, escalations linked to the consumer price index or common area maintenance known as operating expense escalation. Operating expense reimbursements are reflected in our March 31, 2021 and 2020 condensed consolidated statements of operations as rental revenue.

Rental revenue includes fixed and variable payments. Fixed payments primarily relate to base rent and variable payments primarily relate to tenant expense reimbursements for certain property operating costs. The components of rental revenue for the three months ended March 31, 2021 and 2020 are as follows (amounts in thousands):

	Three Months Ended
Rental revenue	March 31, 2021		March 31, 2020
Fixed payments	$	125,773	$	130,514
Variable payments	14,458		17,599
Total rental revenue	$	140,231	$	148,113

As of March 31, 2021, we were entitled to the following future contractual minimum lease payments (excluding operating expense reimbursements) on non-cancellable operating leases to be received which expire on various dates through 2038 (amounts in thousands):

Remainder of 2021	$	369,719
2022	490,994
2023	471,638
2024	435,036
2025	396,144
Thereafter	1,859,648
	$	4,023,179

The above future minimum lease payments exclude tenant recoveries, amortization of deferred rent receivables and the net accretion of above-below-market lease intangibles. Some leases are subject to termination options generally upon payment of a termination fee. The preceding table is prepared assuming such options are not exercised.

Lessee

    We determine if an arrangement is a lease at inception. Our operating lease agreements relate to three ground lease assets and are reflected in right-of-use assets of $29.1 million and lease liabilities of $29.1 million in our consolidated balance sheet as of March 31, 2021. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Variable lease payments are excluded from the right-of-use assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred.

    We make payments under ground leases related to three of our properties. The ground leases are due to expire between the years 2050 and 2077, inclusive of extension options, and have no variable payments or residual value guarantees. As our leases do not provide an implicit rate, we determined our incremental borrowing rate based on information available at the date of adoption of ASU No. 2016-02, Leases (Topic 842), in determining the present value of lease payments. The weighted average incremental borrowing rate used to calculate the right-of-use assets and lease liabilities as of March 31, 2021 was 4.5%. Rent expense for lease payments related to our operating leases is recognized on a straight-line basis over the non-cancellable term of the leases. The weighted average remaining lease term as of March 31, 2021 was 49.1 years.

    As of March 31, 2021, the following table summarizes our future minimum lease payments discounted by our incremental borrowing rates to calculate the lease liabilities of our leases (amounts in thousands):

Remainder of 2021	$	1,139
2022	1,518
2023	1,518
2024	1,518
2025	1,518
Thereafter	65,262
Total undiscounted cash flows	72,473
Present value discount	(43,422)
Ground lease liabilities	$	29,051

Leases

Leases

Lessor    

    We lease various spaces to tenants over terms ranging from one to 21 years. Certain leases have renewal options for additional terms. The leases provide for base monthly rentals and reimbursements for real estate taxes, escalations linked to the consumer price index or common area maintenance known as operating expense escalation. Operating expense reimbursements are reflected in our March 31, 2021 and 2020 condensed consolidated statements of operations as rental revenue.

Rental revenue includes fixed and variable payments. Fixed payments primarily relate to base rent and variable payments primarily relate to tenant expense reimbursements for certain property operating costs. The components of rental revenue for the three months ended March 31, 2021 and 2020 are as follows (amounts in thousands):

	Three Months Ended
Rental revenue	March 31, 2021		March 31, 2020
Fixed payments	$	125,773	$	130,514
Variable payments	14,458		17,599
Total rental revenue	$	140,231	$	148,113

As of March 31, 2021, we were entitled to the following future contractual minimum lease payments (excluding operating expense reimbursements) on non-cancellable operating leases to be received which expire on various dates through 2038 (amounts in thousands):

Remainder of 2021	$	369,719
2022	490,994
2023	471,638
2024	435,036
2025	396,144
Thereafter	1,859,648
	$	4,023,179

The above future minimum lease payments exclude tenant recoveries, amortization of deferred rent receivables and the net accretion of above-below-market lease intangibles. Some leases are subject to termination options generally upon payment of a termination fee. The preceding table is prepared assuming such options are not exercised.

Lessee

    We determine if an arrangement is a lease at inception. Our operating lease agreements relate to three ground lease assets and are reflected in right-of-use assets of $29.1 million and lease liabilities of $29.1 million in our consolidated balance sheet as of March 31, 2021. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Variable lease payments are excluded from the right-of-use assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred.

    We make payments under ground leases related to three of our properties. The ground leases are due to expire between the years 2050 and 2077, inclusive of extension options, and have no variable payments or residual value guarantees. As our leases do not provide an implicit rate, we determined our incremental borrowing rate based on information available at the date of adoption of ASU No. 2016-02, Leases (Topic 842), in determining the present value of lease payments. The weighted average incremental borrowing rate used to calculate the right-of-use assets and lease liabilities as of March 31, 2021 was 4.5%. Rent expense for lease payments related to our operating leases is recognized on a straight-line basis over the non-cancellable term of the leases. The weighted average remaining lease term as of March 31, 2021 was 49.1 years.

    As of March 31, 2021, the following table summarizes our future minimum lease payments discounted by our incremental borrowing rates to calculate the lease liabilities of our leases (amounts in thousands):

Remainder of 2021	$	1,139
2022	1,518
2023	1,518
2024	1,518
2025	1,518
Thereafter	65,262
Total undiscounted cash flows	72,473
Present value discount	(43,422)
Ground lease liabilities	$	29,051

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Legal Proceedings

    Except as described below, as of March 31, 2021, we were not involved in any material litigation, nor, to our knowledge, was any material litigation threatened against us or our properties, other than routine litigation arising in the ordinary course of business such as disputes with tenants. We believe that the costs and related liabilities, if any, which may result from such actions will not materially affect our condensed consolidated financial position, operating results or liquidity.

    As previously disclosed, in October 2014, 12 former investors (the "Claimants") in Empire State Building Associates L.L.C. (“ESBA”), which prior to the initial public offering of our company (the "Offering"), owned the fee title to the Empire State Building, filed an arbitration with the American Arbitration Association against Peter L. Malkin, Anthony E. Malkin, Thomas N. Keltner, Jr., and our subsidiary ESRT MH Holdings LLC, the former supervisor of ESBA (the "Respondents"). The statement of claim (also filed later in federal court in New York for the expressed purpose of tolling the statute of limitations) alleges breach of fiduciary duty and related claims in connection with the Offering and formation transactions and seeks monetary damages and declaratory relief. Claimants had opted out of a prior class action bringing similar claims that was settled with court approval. Respondents filed an answer and counterclaims. In March 2015, the federal court action was stayed on consent of all parties pending the arbitration. Arbitration hearings started in May 2016 and concluded in August 2018. On August 26, 2020, the arbitration panel issued an award that denied all Claimants’ claims with one exception, on which it awarded Claimants approximately $1.2 million, inclusive of seven years of interest through October 2, 2020. This amount was recorded as an IPO litigation expense in the consolidated statement of operations for the year ended December 31, 2020.

Respondents believe that such award in favor of the Claimants is entirely without merit, and have sought vacatur of that portion of the award. In addition, certain of the Claimants in the federal court action sought to pursue claims in that case against Respondents. Respondents believe that any such claims are meritless. The magistrate judge assigned to the action has issued a Report and Recommendation rejecting Claimants’ claims; the district judge will decide whether to adopt the Report and Recommendation.

     Pursuant to indemnification agreements which were made with our directors, executive officers and chairman emeritus as part of our formation transactions, Anthony E. Malkin, Peter L. Malkin and Thomas N. Keltner, Jr. have defense and indemnity rights from us with respect to this arbitration.

Unfunded Capital Expenditures

    At March 31, 2021, we estimate that we will incur approximately $99.3 million of capital expenditures (including tenant improvements and leasing commissions) on our properties pursuant to existing lease agreements. We expect to fund these capital expenditures with operating cash flow, additional property level mortgage financings, our unsecured credit facility, cash on hand and other borrowings. Future property acquisitions may require substantial capital investments for refurbishment and leasing costs. We expect that these financing requirements will be met in a similar fashion.

Concentration of Credit Risk

    Financial instruments that subject us to credit risk consist primarily of cash and cash equivalents, restricted cash, short-term investments, tenant and other receivables and deferred rent receivables. At March 31, 2021, we held on deposit at various

major financial institutions cash and cash equivalents and restricted cash balances in excess of amounts insured by the Federal Deposit Insurance Corporation.

Asset Retirement Obligations

    We are required to accrue costs that we are legally obligated to incur on retirement of our properties which result from acquisition, construction, development and/or normal operation of such properties. Retirement includes sale, abandonment or disposal of a property. Under that standard, a conditional asset retirement obligation represents a legal obligation to perform an asset retirement activity in which the timing and/or method of settlement is conditional on a future event that may or may not be within a company’s control and a liability for a conditional asset retirement obligation must be recorded if the fair value of the obligation can be reasonably estimated. Environmental site assessments and investigations have identified asbestos or asbestos-containing building materials in certain of our properties. As of March 31, 2021, management has no plans to remove or alter these properties in a manner that would trigger federal and other applicable regulations for asbestos removal, and accordingly, the obligations to remove the asbestos or asbestos-containing building materials from these properties have indeterminable settlement dates. As such, we are unable to reasonably estimate the fair value of the associated conditional asset retirement obligation. However, ongoing asbestos abatement, maintenance programs and other required documentation are carried out as required and related costs are expensed as incurred.

Other Environmental Matters

    Certain of our properties have been inspected for soil contamination due to pollutants, which may have occurred prior to our ownership of these properties or subsequently in connection with its development and/or its use. Required remediation to such properties has been completed, and as of March 31, 2021, management believes that there are no obligations related to environmental remediation other than maintaining the affected sites in conformity with the relevant authority’s mandates and filing the required documents. All such maintenance costs are expensed as incurred. We expect that resolution of the environmental matters relating to the above will not have a material impact on our business, assets, consolidated financial condition, results of operations or liquidity. However, we cannot be certain that we have identified all environmental liabilities at our properties, that all necessary remediation actions have been or will be undertaken at our properties or that we will be indemnified, in full or at all, in the event that such environmental liabilities arise.

Insurance Coverage

    We carry insurance coverage on our properties of types and in amounts with deductibles that we believe are in line with coverage customarily obtained by owners of similar properties.

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Equity

3 Months Ended

Mar. 31, 2021

Equity [Abstract]

Equity

Equity

Shares and Units

    An operating partnership unit of the Operating Partnership ("OP Unit") and a share of our common stock have essentially the same economic characteristics as they receive the same per unit profit distributions of the Operating Partnership. On the one-year anniversary of issuance, an OP Unit may be tendered for redemption for cash; however, we have sole and absolute discretion, and sufficient authorized common stock, to exchange OP Units for shares of common stock on a one-for-one basis instead of cash.

    On May 16, 2019, the Empire State Realty Trust, Inc. Empire State Realty OP, L.P. 2019 Equity Incentive Plan (“2019 Plan”) was approved by our shareholders.  The 2019 Plan provides for grants to directors, employees and consultants of our company and operating partnership, including options, restricted stock, restricted stock units, stock appreciation rights, performance awards, dividend equivalents and other equity-based awards.  An aggregate of approximately 11.0 million shares of our common stock are authorized for issuance under awards granted pursuant to the 2019 Plan. We will not issue any new equity awards under the First Amended and Restated Empire State Realty Trust, Inc. and Empire State Realty OP, L.P. 2013 Equity Incentive Plan ("2013 Plan", and collectively with the 2019 Plan, "the Plans"). The shares of Class A common stock underlying any awards under the 2019 Plan and the 2013 Plan that are forfeited, canceled or otherwise terminated, other than by exercise, will be added back to the shares of Class A common stock available for issuance under the 2019 Plan. Shares tendered or held back upon exercise of a stock option or settlement of an award under the 2019 Plan or the 2013 Plan to cover the exercise price or tax withholding and shares subject to a stock appreciation right that are not issued in connection with the stock settlement of the stock appreciation right upon exercise thereof, will not be added back to the shares of Class A common stock available for issuance under the 2019 Plan. In addition, shares of Class A common stock repurchased on the open market will not be added back to the shares of Class A common stock available for issuance under the 2019 Plan.

    Long-term incentive plan ("LTIP") units are a special class of partnership interests in the Operating Partnership. Each LTIP unit awarded will be deemed equivalent to an award of one share of stock under the Plans, reducing the availability for other equity awards on a one-for-one basis.

    The vesting period for LTIP units, if any, will be determined at the time of issuance. Under the terms of the LTIP units, the Operating Partnership will revalue for tax purposes its assets upon the occurrence of certain specified events, and any increase in valuation from the time of grant until such event will be allocated first to the holders of LTIP units to equalize the capital accounts of such holders with the capital accounts of OP unitholders. Subject to any agreed upon exceptions, once vested and having achieved parity with OP unitholders, LTIP units are convertible into OP Units in the Operating Partnership on a one-for-one basis.

     LTIP units subject to time-based vesting, whether vested or not, receive the same per unit distributions as OP units, which equal per share dividends (both regular and special) on our common stock. LTIP units subject to market-based vesting receive 10% of such distributions currently, unless and until such LTIP units are earned based on performance, at which time they will receive the accrued and unpaid 90% and will commence receiving 100% of such distributions thereafter.

    The following is net income attributable to common stockholders and the issuance of our Class A shares in exchange for the conversion of OP Units into common stock (amounts in thousands):

	Three Months Ended
	March 31, 2021		March 31, 2020
Net income (loss) attributable to common stockholders	$	(2,621)	$	4,495
Increase in additional paid-in capital for the conversion of OP Units into common stock	2,689		7,661
Change from net income (loss) attributable to common stockholders and transfers from non-controlling interests	$	68	$	12,156

    As of March 31, 2021, there were 285,622,197 common stock and OP Units outstanding, of which 172,331,871, or 60.3%, were owned by us and 113,290,326, or 39.7%, were owned by other partners, including certain directors, officers and other members of executive management.

Stock and Publicly Traded Operating Partnership Unit Repurchase Program

    Our Board of Directors reauthorized the repurchase of up to $500 million of our Class A common stock and the Operating Partnership’s Series ES, Series 250 and Series 60 operating partnership units through December 31, 2021. Under the program, we may purchase our Class A common stock and the Operating Partnership’s Series ES, Series 250 and Series 60 operating partnership units 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 us at our discretion and will be subject to stock price, availability, trading volume and general market conditions. The authorization does not obligate us to acquire any particular amount of securities, and the program may be suspended or discontinued at our discretion without prior notice.

    The following table summarizes our purchases of equity securities each of the three months ended March 31, 2021:

Period	Total Number of Shares Purchased	Weighted Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plan	Maximum Approximate Dollar Value Available for Future Purchase (in thousands)
January 2021	337,339	$	9.17	337,339	$	496,908
February 2021	45,732	$	9.65	45,732	$	496,467
March 2021	—	$	—	—	$	496,467

Private Perpetual Preferred Units

    As of March 31, 2021, there were 4,664,038 Series 2019 Preferred Units ("Series 2019 Preferred Units") and 1,560,360 Series 2014 Private Perpetual Preferred Units ("Series 2014 Preferred Units"). The Series 2019 Preferred Units have a liquidation preference of $13.52 per unit and are entitled to receive cumulative preferential annual cash distributions of $0.70 per unit payable in arrears on a quarterly basis. The Series 2019 Preferred Units are not redeemable at the option of the holders

and are redeemable at our option only in the case of specific defined events. The Series 2014 Preferred Units which have a liquidation preference of $16.62 per unit and are entitled to receive cumulative preferential annual cash distributions of $0.60 per unit payable in arrears on a quarterly basis. The Series 2014 Preferred Units are not redeemable at the option of the holders and are redeemable at our option only in the case of specific defined events.

Dividends and Distributions

    Total dividends paid to common stockholders were $0.0 million and $19.0 million for the three months ended March 31, 2021 and 2020, respectively. Total distributions paid to OP unitholders, excluding inter-company distributions, were $0.0 million and $12.6 million for the three months ended March 31, 2021 and 2020, respectively. Total distributions paid to preferred unitholders were $1.1 million and $1.1 million for the three months ended March 31, 2021 and 2020, respectively.

Incentive and Share-Based Compensation

    The Plans provide for grants to directors, employees and consultants consisting of stock options, restricted stock, dividend equivalents, stock payments, performance shares, LTIP units, stock appreciation rights and other incentive awards. An aggregate of 11.0 million shares of our common stock is authorized for issuance under awards granted pursuant to the 2019 Plan, and as of March 31, 2021, 7.8 million shares of common stock remain available for future issuance.

    In March 2021, we made grants of LTIP units to executive officers under the 2019 Plan. At such time, we granted to executive officers a total of 364,199 LTIP units that are subject to time-based vesting and 1,007,156 LTIP units that are subject to market-based vesting, with fair market values of $3.4 million for the time-based vesting awards and $6.9 million for the market-based vesting awards. In March 2021, we made grants of LTIP units and restricted stock to certain other employees under the 2019 Plan. At such time, we granted to certain other employees a total of 128,419 LTIP units and 113,333 shares of restricted stock that are subject to time-based vesting and 192,760 LTIP units that are subject to market-based vesting, with fair market values of $2.7 million for the time-based vesting awards and $1.5 million for the market-based vesting awards. The awards subject to time-based vesting vest ratably over four years from January 1, 2021, subject generally to the grantee's continued employment. The first installment vests on January 1, 2022 and the remainder will vest thereafter in three equal annual installments. The vesting of the LTIP units subject to market-based vesting is based on the achievement of relative total stockholder return hurdles over a three-year performance period, commencing on January 1, 2021. Following the completion of the three-year performance period, our Compensation and Human Capital Committee will determine the number of LTIP units to which the grantee is entitled based on our performance relative to the performance hurdles set forth in the LTIP unit award agreements the grantee entered into in connection with the award grant. These units then vest in two installments, with the first installment vesting on January 1, 2024 and the second installment vesting on January 1, 2025, subject generally to the grantee's continued employment on those dates.

In March 2021, we also made one-time additional grants of LTIP units and restricted stock to an executive officer and certain other employees under the 2019 Plan. At such time, we granted the executive officer 46,168 LTIP units that are subject to time-based vesting and we granted to certain other employees 85,409 LTIP units and 7,562 restricted stock that are subject to time-based vesting, with fair market values of $1.5 million. These awards are subject to time-based vesting and vest over five years from January 1, 2021, subject generally to the grantee's continued employment. The first installment vests 30% on January 1, 2024, the second installment vests 30% on January 1, 2025 and the remainder of 40% will vest on January 1, 2026.

For awards granted in 2017, 2018, 2019 and 2020, our named executive officers can elect to receive their annual incentive bonus in any combination of (i) cash or vested LTIPs at the face amount of such bonus or (ii) time-vesting LTIPs which would vest over three years, subject to continued employment, at 125% of such face amount. For awards granted in 2021, the amounts vest at 120% of such face amount. In March 2021, we made grants of LTIP units to executive officers under the 2019 Plan in connection with the 2020 bonus election program. We granted to executive officers a total of 235,729 LTIP units that are subject to time-based vesting with a fair market value of $2.2 million. Of these LTIP units, 39,472 LTIP units vested immediately on the grant date and 196,257 LTIP units vest ratably over three years from January 1, 2021, subject generally to the grantee's continued employment. The first installment vests on January 1, 2022 and the remainder will vest thereafter in two equal annual installments.

In March 2020, we made grants of LTIP units to executive officers under the 2019 Plan. At such time, we granted to executive officers a total of 745,155 LTIP units that are subject to time-based vesting and 3,358,767 LTIP units that are subject to market-based vesting, with fair market values of $5.6 million for the time-based vesting awards and $14.0 million for the market-based vesting awards. In March 2020, we made grants of LTIP units and restricted stock to certain other employees under the 2019 Plan. At such time, we granted to certain other employees a total of 113,971 LTIP units and 158,806 shares of restricted stock that are subject to time-based vesting and 502,475 LTIP units that are subject to market-based vesting, with fair

market values of $2.3 million for the time-based vesting awards and $2.3 million for the market-based vesting awards. The awards subject to time-based vesting vest ratably over four years from January 1, 2020, subject generally to the grantee's continued employment. The first installment vests on January 1, 2021 and the remainder will vest thereafter in three equal annual installments. The vesting of the LTIP units subject to market-based vesting is based on the achievement of relative total stockholder return hurdles over a three-year performance period, commencing on January 1, 2020. Following the completion of the three-year performance period, our Compensation and Human Capital Committee will determine the number of LTIP units to which the grantee is entitled based on our performance relative to the performance hurdles set forth in the LTIP unit award agreements the grantee entered into in connection with the award grant. These units then vest in two installments, with the first installment vesting on January 1, 2023 and the second installment vesting on January 1, 2024, subject generally to the grantee's continued employment on those dates.

    In March 2020, we made grants of LTIP units to executive officers under the 2019 Plan in connection with the 2019 bonus election program. We granted to executive officers a total of 624,380 LTIP units that are subject to time-based vesting with a fair market value of $4.4 million. Of these LTIP units, 23,049 LTIP units vested immediately on the grant date and 601,331 LTIP units vest ratably over three years from January 1, 2020, subject generally to the grantee's continued employment. The first installment vests on January 1, 2021 and the remainder will vest thereafter in two equal annual installments.

    In May 2020, we made grants of LTIP units under the 2019 Plan. At such time, we granted our non-employee directors a total of 171,153 LTIP units that are subject to time-based vesting with fair market values of $1.1 million. These awards vest ratably over three years from the date of the grant, subject generally to the director's continued service on our Board of Directors. We also granted Christina Chiu, our Executive Vice President and Chief Financial Officer, a total of 82,199 LTIP units that are subject to time-based vesting and 116,927 LTIP units that are subject to market-based vesting, with fair market values of $0.5 million for the time-based vesting awards and $0.5 million for the market-based vesting awards. We also granted certain other employees a total of 63,229 LTIP units that are subject to time-based vesting with a fair market value of $0.4 million. The awards subject to time-based vesting vest ratably over three or four years from the date of grant, subject generally to the grantee's continued employment. The first installment vests on the respective grant dates in May 2021 and the remainder will vest thereafter in two or three equal annual installments. The vesting of the LTIP units subject to market-based vesting is based on the achievement of relative total stockholder return hurdles over a three-year performance period, commencing on May 7, 2020. Following the completion of the three-year performance period, our Compensation and Human Capital Committee will determine the number of LTIP units to which the grantee is entitled based on our performance relative to the performance hurdles set forth in the LTIP unit award agreements the grantee entered into in connection with the award grant. These units then vest in two installments, with the first installment vesting on May 7, 2023 and the second installment vesting on May 7, 2024, subject generally to the grantee's continued employment on those dates.

    In December and August 2020, we granted Grant H. Hill and R. Paige Hood, respectively, our new non-employee directors, a total of 31,117 LTIP units that are subject to time-based vesting with a fair market value of $0.2 million. These awards vest ratably on each of the first three anniversaries of May 15, 2020, subject generally to their continued service on our Board of Directors.

    In COVID-19 disrupted markets during the first quarter of 2020, the LTIP units that are subject to market-based vesting were undervalued on initial appraisal, and the resulting number of LTIP units issued in March 2020 was reduced on final appraisal to match the original Board-approved dollar value. In June 2020, we reduced the grants of LTIP units that are subject to market-based vesting which were awarded to executive officers and certain other employees by 666,933 LTIP units with fair market values of $2.8 million and 99,630 LTIP units with fair market values of $0.5 million, respectively.

    Share-based compensation for time-based equity awards is measured at the fair value of the award on the date of grant and recognized as an expense on a straight-line basis over the shorter of (i) the stated vesting period, which is generally three, four or five years, or (ii) the period from the date of grant to the date the employee becomes retirement eligible, which may occur upon grant. An employee is retirement eligible when the employee attains the (i) age of 65 and (ii) the date on which the employee has first completed ten years of continuous service with us or our affiliates. During the second quarter of 2020, the Board approved changing the definition of retirement age from 60 to 65 starting with the grant awards issued in March 2020 under the 2019 Plan. Share-based compensation for market-based equity awards is measured at the fair value of the award on the date of grant and recognized as an expense on a straight-line basis over three or four years depending on retirement eligibility.

    For the market-based LTIP units, the fair value of the awards was estimated using a Monte Carlo Simulation model and discounted for the restriction period during which the LTIP units cannot be redeemed or transferred and the uncertainty regarding if, and when, the book capital account of the LTIP units will equal that of the common units.  Our stock price, along

with the prices of the comparative indexes, is assumed to follow the Geometric Brownian Motion Process.  Geometric Brownian Motion is a common assumption when modeling in financial markets, as it allows the modeled quantity (in this case the stock price) to vary randomly from its current value and take any value greater than zero.  The volatilities of the returns on our stock price and the comparative indexes were estimated based on implied volatilities and historical volatilities using a six-year look-back period.  The expected growth rate of the stock prices over the performance period is determined with consideration of the risk-free rate as of the grant date.  For LTIP unit awards that are time-based, the fair value of the awards was estimated based on the fair value of our stock at the grant date discounted for the restriction period during which the LTIP units cannot be redeemed or transferred and the uncertainty regarding if, and when, the book capital account of the LTIP units will equal that of the common units.  For restricted stock awards, we estimate the stock compensation expense based on the fair value of the stock at the grant date.

    LTIP units and restricted stock issued during the three months ended March 31, 2021 were valued at $18.3 million. The weighted average per unit or share fair value was $8.38 for grants issued in 2021. The per unit or share granted in 2020 was estimated on the respective dates of grant using the following assumptions: an expected life from 2.0 to 5.3 years, a dividend rate of 2.60%, a risk-free interest rate from 0.12% to 0.32%, and an expected price volatility from 36.0% to 53.0%.

    No other stock options, dividend equivalents, or stock appreciation rights were issued or outstanding in 2021.

    The following is a summary of restricted stock and LTIP unit activity for the three months ended March 31, 2021:

	Restricted Stock	LTIP Units	Weighted Average Grant Fair Value
Unvested balance at December 31, 2020	217,700	7,750,284	$	6.94
Vested	(70,338)	(847,406)	11.94
Granted	120,895	2,059,840	8.38
Forfeited or unearned	(9,495)	(1,417,107)	5.47
Unvested balance at March 31, 2021	258,762	7,545,611	$	7.02

    The LTIP unit and restricted stock awards are treated for accounting purposes as immediately vested upon the later of (i) the date the grantee attains the age of 60 or 65, as applicable, and (ii) the date on which grantee has first completed ten years of continuous service with our company or its affiliates. For award agreements that qualify, we recognize noncash compensation expense on the grant date for the time-based awards and ratably over the vesting period for the performance-based awards, and accordingly, we recognized $1.0 million and $1.6 million for the three months ended March 31, 2021 and 2020, respectively. Unrecognized compensation expense was $2.1 million at March 31, 2021, which will be recognized over a weighted average period of 2.7 years.

    For the remainder of the LTIP unit and restricted stock awards, we recognize noncash compensation expense ratably over the vesting period, and accordingly, we recognized noncash compensation expense of $3.8 million and $4.3 million for the three months ended March 31, 2021 and 2020 respectively. Unrecognized compensation expense was $38.8 million at March 31, 2021, which will be recognized over a weighted average period of 2.7 years.

Earnings Per Share

    Earnings per share for the three months ended March 31, 2021 and 2020 is computed as follows (amounts in thousands, except per share amounts):

	Three Months Ended
	March 31, 2021		March 31, 2020
Numerator - Basic:
Net income (loss)	$	(3,191)	$	8,288
Private perpetual preferred unit distributions	(1,050)		(1,050)
Net income (loss) attributable to non-controlling interests	1,620		(2,743)
Earnings allocated to unvested shares	—		(11)
Net income (loss) attributable to common stockholders – basic	$	(2,621)	$	4,484
Numerator - Diluted:
Net income (loss)	$	(3,191)	$	8,288
Private perpetual preferred unit distributions	(1,050)		(1,050)
Earnings allocated to unvested shares	—		(11)
Net income (loss) attributable to common stockholders – diluted	$	(4,241)	$	7,227
Denominator:
Weighted average shares outstanding – basic	171,735		181,741
Operating partnership units	106,146		110,904
Effect of dilutive securities:
Stock-based compensation plans	—		—
Weighted average shares outstanding – diluted	277,881		292,645
Earnings (loss) per share:
Basic	$	(0.02)	$	0.02
Diluted	$	(0.02)	$	0.02

    There were 315,595 and 399,894 antidilutive shares and LTIP units for the three months ended March 31, 2021 and 2020, respectively.

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Related Party Transactions

3 Months Ended

Mar. 31, 2021

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

Supervisory Fee Revenue

    We earned supervisory fees from entities affiliated with Anthony E. Malkin, our Chairman and Chief Executive Officer, of $0.2 million and $0.2 million for the three months ended March 31, 2021 and 2020, respectively. These fees are included within third-party management and other fees.

Property Management Fee Revenue

    We earned property management fees from entities affiliated with Anthony E. Malkin of $0.04 million and $0.1 million for the three months ended March 31, 2021 and 2020, respectively. These fees are included within third-party management and other fees.

Other    We receive rent generally at the market rental rate for 5,447 square feet of leased space from entities affiliated with Anthony E. Malkin at one of our properties. Under the lease, the tenant has the right to cancel such lease without special payment on 90 days’ notice. We also have a shared use agreement with such tenant, to occupy a portion of the leased premises as the office location for Peter L. Malkin, our chairman emeritus and employee, utilizing approximately 15% of the space, for which we pay to such tenant an allocable pro rata share of the cost. We also have agreements with these entities and excluded properties and businesses to provide them with general computer-related support services. Total revenue aggregated $0.1 million and $0.1 million for the three months ended March 31, 2021 and 2020, respectively

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Segment Reporting

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

    We have identified two reportable segments: (1) real estate and (2) observatory. Our real estate segment includes all activities related to the ownership, management, operation, acquisition, redevelopment, repositioning and disposition of our traditional real estate assets. Our observatory segment includes the operation of the 86th and 102nd floor observatories at the Empire State Building. These two lines of businesses are managed separately because each business requires different support infrastructures, provides different services and has dissimilar economic characteristics such as investments needed, stream of revenues and marketing strategies. We account for intersegment sales and rent as if the sales or rent were to third parties, that is, at current market prices.

The following tables provide components of segment net income (loss) for each segment for the three and three months ended March 31, 2021 and 2020 (amounts in thousands):

	Three Months Ended March 31, 2021
	Real Estate		Observatory		Intersegment Elimination		Total
Revenues:
Rental revenue	$	140,231	$	—	$	—	$	140,231
Intercompany rental revenue	4,932		—		(4,932)		—
Observatory revenue	—		2,603		—		2,603
Lease termination fees	1,289		—		—		1,289
Third-party management and other fees	276		—		—		276
Other revenue and fees	905		—		—		905
Total revenues	147,633		2,603		(4,932)		145,304
Operating expenses:
Property operating expenses	30,279		—		—		30,279
Intercompany rent expense	—		4,932		(4,932)		—
Ground rent expense	2,331		—		—		2,331
General and administrative expenses	13,853		—		—		13,853
Observatory expenses	—		4,588		—		4,588
Real estate taxes	31,447		—		—		31,447
Depreciation and amortization	44,419		38		—		44,457
Total operating expenses	122,329		9,558		(4,932)		126,955
Total operating income (loss)	25,304		(6,955)		—		18,349
Other income (expense):
Interest income	120		2		—		122
Interest expense	(23,554)		—		—		(23,554)
Loss on early extinguishment of debt	(214)		—		—		(214)
Income (loss) before income taxes	1,656		(6,953)		—		(5,297)
Income tax (expense) benefit	(283)		2,389		—		2,106
Net income (loss)	$	1,373	$	(4,564)	$	—	$	(3,191)
Segment assets	$	3,910,152	$	241,371	$	—	$	4,151,523
Expenditures for segment assets	$	23,331	$	4	$	—	$	23,335

	Three Months Ended March 31, 2020
	Real Estate		Observatory		Intersegment Elimination		Total
Revenues:
Rental revenue	$	148,113	$	—	$	—	$	148,113
Intercompany rental revenue	11,536		—		(11,536)		—
Observatory revenue	—		19,544		—		19,544
Lease termination fees	211		—		—		211
Third-party management and other fees	346		—		—		346
Other revenue and fees	2,010		—		—		2,010
Total revenues	162,216		19,544		(11,536)		170,224
Operating expenses:
Property operating expenses	41,468		—		—		41,468
Intercompany rent expense	—		11,536		(11,536)		—
Ground rent expense	2,331		—		—		2,331
General and administrative expenses	15,951		—		—		15,951
Observatory expenses	—		8,154		—		8,154
Real estate taxes	29,254		—		—		29,254
Depreciation and amortization	46,085		8		—		46,093
Total operating expenses	135,089		19,698		(11,536)		143,251
Total operating income	27,127		(154)		—		26,973
Other income (expense):
Interest income	637		—		—		637
Interest expense	(19,618)		—		—		(19,618)
Loss on early extinguishment of debt	(86)		—		—		(86)
Income (loss) before income taxes	8,060		(154)		—		7,906
Income tax (expense) benefit	(227)		609		—		382
Net income	$	7,833	$	455	$	—	$	8,288
Segment assets	$	4,409,281	$	255,277	$	—	$	4,664,558
Expenditures for segment assets	$	26,570	$	1,237	$	—	$	27,807

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Subsequent Events	3 Months Ended
	Mar. 31, 2021
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events    None.

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Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Basis of Quarterly Presentation	The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), for interim financial information, and with the rules and regulations of the Securities and Exchange Commission (the "SEC"). Accordingly, certain information and footnote disclosures required by GAAP for complete financial statements have been condensed or omitted in accordance with such rules and regulations. In the opinion of management, all adjustments and eliminations (including intercompany balances and transactions), consisting of normal recurring adjustments, considered necessary for the fair presentation of the financial statements have been included.
Principles of Consolidation	The results of operations for the periods presented are not necessarily indicative of the results that may be expected for the corresponding full years. These financial statements should be read in conjunction with the financial statements and accompanying notes included in the financial statements for the year ended December 31, 2020 contained in our Annual Report on Form 10-K. We do not consider our business to be subject to material seasonal fluctuations, except that our observatory business is subject to tourism seasonality and currently impacted by the Coronavirus 19 ("COVID-19") pandemic.
Principles of Consolidation for Variable Interest Entities	We consolidate entities in which we have a controlling financial interest.  In determining whether we have a controlling financial interest in a partially owned entity and the requirement to consolidate the accounts of that entity, we consider factors such as ownership interest, board representation, management representation, authority to make decisions, and contractual and substantive participating rights of the partners/members.  For variable interest entities ("VIE"), we consolidate the entity if we are deemed to have a variable interest in the entity and through that interest we are deemed the primary beneficiary. The primary beneficiary of a VIE is the entity that has (i) the power to direct the activities that most significantly impact the entity's economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE. The primary beneficiary is required to consolidate the VIE. The Operating Partnership is a variable interest entity of our company, Empire State Realty Trust, Inc.  As the Operating Partnership is already consolidated in the financial statements of Empire State Realty Trust, Inc., the identification of this entity as a variable interest entity has no impact on our consolidated financial statements.    We will assess the accounting treatment for each investment we may have in the future. This assessment will include a review of each entity’s organizational agreement to determine which party has what rights and whether those rights are protective or participating. For all VIEs, we will review such agreements in order to determine which party has the power to direct the activities that most significantly impact the entity’s economic performance and benefit. In situations where we or our partner could approve, among other things, the annual budget, or leases that cover more than a nominal amount of space relative to the total rentable space at each property, we would not consolidate the investment as we consider these to be substantive participation rights that result in shared power of the activities that would most significantly impact the performance and benefit of such joint venture investment.     A non-controlling interest in a consolidated subsidiary is defined as the portion of the equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. Non-controlling interests are required to be presented as a separate component of equity in the condensed consolidated balance sheets and in the condensed consolidated statements of operations by requiring earnings and other comprehensive income to be attributed to controlling and non-controlling interests.
Accounting Estimates	The preparation of the condensed consolidated financial statements in accordance with GAAP requires management to use estimates and assumptions that in certain circumstances affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Significant items subject to such estimates and assumptions include allocation of the purchase price of acquired real estate properties among tangible and intangible assets, determination of the useful life of real estate properties and other long-lived assets, valuation and impairment analysis of commercial real estate properties, right of use assets and other long-lived and indefinite lived assets, estimate of tenant expense reimbursements, valuation of the allowance for doubtful accounts, and valuation of derivative instruments, ground lease liabilities, senior unsecured notes, mortgage notes payable, unsecured term loan and revolving credit facilities, and equity based compensation. These estimates are prepared using management’s best judgment, after considering past, current, and expected events and economic conditions. Actual results could differ from those estimates.
Recently Issued or Adopted Accounting Standards	During April 2020, the Financial Accounting Standards Board ("FASB") staff issued a question and answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of the COVID-19 pandemic. Under existing lease guidance, the entity would have to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant, which would be accounted for under the lease modification framework, or if a lease concession was under the enforceable rights and obligations that existed in the original lease, which would be accounted for outside the lease modification framework. The Lease Modification Q&A provides entities with the option to elect to account for lease concessions as though the enforceable rights and obligations existed in the original lease. This election is only available when total cash flows resulting from the modified lease are substantially similar to the cash flows in the original lease.     During March 2020, the FASB issued Accounting Standards Update ("ASU") 2020-04, Reference Rate Reform (Topic 848). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. During the first quarter 2020, we elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. We continue to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.
Fair Valuation	The estimated fair values at March 31, 2021 and December 31, 2020 were determined by management, using available market information and appropriate valuation methodologies. Considerable judgment is necessary to interpret market data and develop estimated fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts we could realize on disposition of the financial instruments. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.     The fair value of derivative instruments is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. Although the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by ourselves and our counterparties. The impact of such credit valuation adjustments, determined based on the fair value of each individual contract, was not significant to the overall valuation. As a result, all of our derivatives were classified as Level 2 of the fair value hierarchy.    The fair value of our mortgage notes payable, senior unsecured notes - Series A, B, C, D, E, F, G and H, unsecured term loan facilities, unsecured revolving credit facility and ground lease liabilities which are determined using Level 3 inputs, are estimated by discounting the future cash flows using current interest rates at which similar borrowings could be made to us.

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Deferred Costs, Acquired Lease Intangibles and Goodwill (Tables)

3 Months Ended

Mar. 31, 2021

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Deferred costs, net

Deferred costs, net, consisted of the following as of March 31, 2021 and December 31, 2020 (amounts in thousands):  

	March 31, 2021		December 31, 2020
Leasing costs	$	203,730	$	203,905
Acquired in-place lease value and deferred leasing costs	180,131		181,336
Acquired above-market leases	40,254		40,398
	424,115		425,639
Less: accumulated amortization	(225,967)		(223,918)
Total deferred costs, net, excluding net deferred financing costs	$	198,148	$	201,721

Deferred financing costs, net, consisted of the following at March 31, 2021 and December 31, 2020 (amounts in thousands):

	March 31, 2021		December 31, 2020
Financing costs	$	42,689	$	35,365
Less: accumulated amortization	(19,202)		(17,998)
Total deferred financing costs, net	$	23,487	$	17,367

Amortizing acquired intangible assets and liabilities

Amortizing acquired intangible assets and liabilities consisted of the following as of March 31, 2021 and December 31, 2020 (amounts in thousands):

	March 31, 2021		December 31, 2020
Acquired below-market ground leases	$	396,916	$	396,916
Less: accumulated amortization	(54,139)		(52,181)
Acquired below-market ground leases, net	$	342,777	$	344,735

	March 31, 2021		December 31, 2020
Acquired below-market leases	$	(77,686)	$	(78,451)
Less: accumulated amortization	47,574		46,746
Acquired below-market leases, net	$	(30,112)	$	(31,705)

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Debt (Tables)

3 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

Long-term debt

Debt consisted of the following as of March 31, 2021 and December 31, 2020 (amounts in thousands):

	Principal Balance				As of March 31, 2021
	March 31, 2021		December 31, 2020		Stated Rate		Effective Rate(1)		Maturity Date(2)
Mortgage debt collateralized by:
Fixed rate mortgage debt
Metro Center	$	86,803	$	87,382	3.59	%	3.68	%	11/5/2024
10 Union Square	50,000		50,000		3.70	%	3.97	%	4/1/2026
1542 Third Avenue	30,000		30,000		4.29	%	4.53	%	5/1/2027
First Stamford Place(3)	180,000		180,000		4.28	%	4.71	%	7/1/2027
1010 Third Avenue and 77 West 55th Street	37,278		37,477		4.01	%	4.23	%	1/5/2028
250 West 57th Street	180,000		180,000		2.83	%	3.19	%	12/1/2030
10 Bank Street	31,795		32,025		4.23	%	4.36	%	6/1/2032
383 Main Avenue	30,000		30,000		4.44	%	4.55	%	6/30/2032
1333 Broadway	160,000		160,000		4.21	%	4.29	%	2/5/2033
Total mortgage debt	785,876		786,884
Senior unsecured notes:(4)
Series A	100,000		100,000		3.93	%	3.96	%	3/27/2025
Series B	125,000		125,000		4.09	%	4.12	%	3/27/2027
Series C	125,000		125,000		4.18	%	4.21	%	3/27/2030
Series D	115,000		115,000		4.08	%	4.11	%	1/22/2028
Series E	160,000		160,000		4.26	%	4.27	%	3/22/2030
Series F	175,000		175,000		4.44	%	4.45	%	3/22/2033
Series G	100,000		100,000		3.61	%	4.89	%	3/17/2032
Series H	75,000		75,000		3.73	%	5.00	%	3/17/2035
Unsecured term loan facility (4)	215,000		215,000		LIBOR plus 1.20%		3.56	%	3/19/2025
Unsecured revolving credit facility (4)	—		—		LIBOR plus 1.30%		—		3/31/2025
Unsecured term loan facility (4)	175,000		175,000		LIBOR plus 1.50%		3.60	%	12/31/2026
Total principal	2,150,876		2,151,884
Deferred financing costs, net	(14,575)		(15,235)
Total	$	2,136,301	$	2,136,649

______________

(1)The effective rate is the yield as of March 31, 2021 and includes the stated interest rate, deferred financing cost amortization and interest associated with variable to fixed interest rate swap agreements.

(2)Pre-payment is generally allowed for each loan upon payment of a customary pre-payment penalty.

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

(4)At March 31, 2021, we were in compliance with all debt covenants.

Aggregate required principal payments

Aggregate required principal payments at March 31, 2021 are as follows (amounts in thousands):

Year	Amortization		Maturities		Total
2021	$	3,082	$	—	$	3,082
2022	5,628		—		5,628
2023	7,876		—		7,876
2024	7,958		77,675		85,633
2025	5,826		315,000		320,826
Thereafter	20,084		1,707,747		1,727,831
Total	$	50,454	$	2,100,422	$	2,150,876

Deferred financing costs, net

Deferred costs, net, consisted of the following as of March 31, 2021 and December 31, 2020 (amounts in thousands):  

	March 31, 2021		December 31, 2020
Leasing costs	$	203,730	$	203,905
Acquired in-place lease value and deferred leasing costs	180,131		181,336
Acquired above-market leases	40,254		40,398
	424,115		425,639
Less: accumulated amortization	(225,967)		(223,918)
Total deferred costs, net, excluding net deferred financing costs	$	198,148	$	201,721

Deferred financing costs, net, consisted of the following at March 31, 2021 and December 31, 2020 (amounts in thousands):

	March 31, 2021		December 31, 2020
Financing costs	$	42,689	$	35,365
Less: accumulated amortization	(19,202)		(17,998)
Total deferred financing costs, net	$	23,487	$	17,367

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Accounts Payable and Accrued Expenses (Tables)

3 Months Ended

Mar. 31, 2021

Payables and Accruals [Abstract]

Accounts payable and accrued expenses

Accounts payable and accrued expenses consisted of the following as of March 31, 2021 and December 31, 2020 (amounts in thousands):

	March 31, 2021		December 31, 2020
Accrued capital expenditures	$	60,536	$	58,057
Accounts payable and accrued expenses	30,032		32,309
Interest rate swap agreements liability	7,450		8,849
Accrued interest payable	3,436		3,219
Due to affiliated companies	927		769
Total accounts payable and accrued expenses	$	102,381	$	103,203

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Financial Instruments and Fair Values (Tables)

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Summary of the terms of the agreement and the fair value of derivative financial instruments

The table below summarizes the terms of agreements and the fair values of our derivative financial instruments as of March 31, 2021 and December 31, 2020 (dollar amounts in thousands):     

							March 31, 2021				December 31, 2020
Derivative	Notional Amount		Receive Rate	Pay Rate	Effective Date	Expiration Date	Asset		Liability		Asset		Liability
Interest rate swap	$	265,000	1 Month LIBOR	2.1485%	August 31, 2017	August 24, 2022	$	—	$	(7,450)	$	—	$	(8,849)

Effect of our derivative financial instruments designated as cash flow hedges on accumulated other comprehensive income (loss)

The table below shows the effect of our derivative financial instruments designated as cash flow hedges on accumulated other comprehensive income (loss) for the three months ended March 31, 2021 and 2020 (amounts in thousands):    

	Three Months Ended
Effects of Cash Flow Hedges	March 31, 2021		March 31, 2020
Amount of gain (loss) recognized in other comprehensive income (loss)	$	59	$	(17,695)
Amount of gain (loss) reclassified from accumulated other comprehensive (loss) into interest expense	(2,869)		(796)

    The table below shows the effect of our derivative financial instruments designated as cash flow hedges on the condensed consolidated statements of operations for the three months ended March 31, 2021 and 2020 (amounts in thousands):

	Three Months Ended
Effects of Cash Flow Hedges	March 31, 2021		March 31, 2020
Total interest (expense) presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded	$	(23,554)	$	(19,618)
Amount of gain (loss) reclassified from accumulated other comprehensive (loss) into interest expense	(2,869)		(796)

Summary of the carrying and estimated fair values of financial instruments

The following tables summarize the carrying and estimated fair values of our financial instruments as of March 31, 2021 and December 31, 2020 (amounts in thousands):

	March 31, 2021
			Estimated Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Interest rate swap included in accounts payable and accrued expenses	$	7,450	$	7,450	$	—	$	7,450	$	—
Mortgage notes payable	775,276		772,147		—		—		772,147
Senior unsecured notes - Series A, B, C, D, E, F, G and H	973,214		986,839		—		—		986,839
Unsecured term loan facilities	387,811		390,000		—		—		390,000

    

	December 31, 2020
			Estimated Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Interest rate swap included in accounts payable and accrued expenses	$	8,849	$	8,849	$	—	$	8,849	$	—
Mortgage notes payable	775,929		808,294		—		—		808,294
Senior unsecured notes - Series A, B, C, D, E, F, G and H	973,159		1,039,857		—		—		1,039,857
Unsecured term loan facilities	387,561		390,000		—		—		390,000

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Leases (Tables)

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

Components of rental revenue

The components of rental revenue for the three months ended March 31, 2021 and 2020 are as follows (amounts in thousands):

	Three Months Ended
Rental revenue	March 31, 2021		March 31, 2020
Fixed payments	$	125,773	$	130,514
Variable payments	14,458		17,599
Total rental revenue	$	140,231	$	148,113

Future contractual minimum lease payments on non-cancellable operating leases to be received (current year-to-date)

As of March 31, 2021, we were entitled to the following future contractual minimum lease payments (excluding operating expense reimbursements) on non-cancellable operating leases to be received which expire on various dates through 2038 (amounts in thousands):

Remainder of 2021	$	369,719
2022	490,994
2023	471,638
2024	435,036
2025	396,144
Thereafter	1,859,648
	$	4,023,179

Future minimum lease payments to be paid

As of March 31, 2021, the following table summarizes our future minimum lease payments discounted by our incremental borrowing rates to calculate the lease liabilities of our leases (amounts in thousands):

Remainder of 2021	$	1,139
2022	1,518
2023	1,518
2024	1,518
2025	1,518
Thereafter	65,262
Total undiscounted cash flows	72,473
Present value discount	(43,422)
Ground lease liabilities	$	29,051

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Equity (Tables)

3 Months Ended

Mar. 31, 2021

Equity [Abstract]

Net income attributable to common stockholders and the issuance of our Class A shares in exchange for the conversion of OP Units into common stock

The following is net income attributable to common stockholders and the issuance of our Class A shares in exchange for the conversion of OP Units into common stock (amounts in thousands):

	Three Months Ended
	March 31, 2021		March 31, 2020
Net income (loss) attributable to common stockholders	$	(2,621)	$	4,495
Increase in additional paid-in capital for the conversion of OP Units into common stock	2,689		7,661
Change from net income (loss) attributable to common stockholders and transfers from non-controlling interests	$	68	$	12,156

Schedule of Equity Securities Repurchased

The following table summarizes our purchases of equity securities each of the three months ended March 31, 2021:

Period	Total Number of Shares Purchased	Weighted Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plan	Maximum Approximate Dollar Value Available for Future Purchase (in thousands)
January 2021	337,339	$	9.17	337,339	$	496,908
February 2021	45,732	$	9.65	45,732	$	496,467
March 2021	—	$	—	—	$	496,467

Summary of restricted stock and LTIP unit activity

The following is a summary of restricted stock and LTIP unit activity for the three months ended March 31, 2021:

	Restricted Stock	LTIP Units	Weighted Average Grant Fair Value
Unvested balance at December 31, 2020	217,700	7,750,284	$	6.94
Vested	(70,338)	(847,406)	11.94
Granted	120,895	2,059,840	8.38
Forfeited or unearned	(9,495)	(1,417,107)	5.47
Unvested balance at March 31, 2021	258,762	7,545,611	$	7.02

Earnings per share

Earnings per share for the three months ended March 31, 2021 and 2020 is computed as follows (amounts in thousands, except per share amounts):

	Three Months Ended
	March 31, 2021		March 31, 2020
Numerator - Basic:
Net income (loss)	$	(3,191)	$	8,288
Private perpetual preferred unit distributions	(1,050)		(1,050)
Net income (loss) attributable to non-controlling interests	1,620		(2,743)
Earnings allocated to unvested shares	—		(11)
Net income (loss) attributable to common stockholders – basic	$	(2,621)	$	4,484
Numerator - Diluted:
Net income (loss)	$	(3,191)	$	8,288
Private perpetual preferred unit distributions	(1,050)		(1,050)
Earnings allocated to unvested shares	—		(11)
Net income (loss) attributable to common stockholders – diluted	$	(4,241)	$	7,227
Denominator:
Weighted average shares outstanding – basic	171,735		181,741
Operating partnership units	106,146		110,904
Effect of dilutive securities:
Stock-based compensation plans	—		—
Weighted average shares outstanding – diluted	277,881		292,645
Earnings (loss) per share:
Basic	$	(0.02)	$	0.02
Diluted	$	(0.02)	$	0.02

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Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Components of segment net income (loss) for each segment

The following tables provide components of segment net income (loss) for each segment for the three and three months ended March 31, 2021 and 2020 (amounts in thousands):

	Three Months Ended March 31, 2021
	Real Estate		Observatory		Intersegment Elimination		Total
Revenues:
Rental revenue	$	140,231	$	—	$	—	$	140,231
Intercompany rental revenue	4,932		—		(4,932)		—
Observatory revenue	—		2,603		—		2,603
Lease termination fees	1,289		—		—		1,289
Third-party management and other fees	276		—		—		276
Other revenue and fees	905		—		—		905
Total revenues	147,633		2,603		(4,932)		145,304
Operating expenses:
Property operating expenses	30,279		—		—		30,279
Intercompany rent expense	—		4,932		(4,932)		—
Ground rent expense	2,331		—		—		2,331
General and administrative expenses	13,853		—		—		13,853
Observatory expenses	—		4,588		—		4,588
Real estate taxes	31,447		—		—		31,447
Depreciation and amortization	44,419		38		—		44,457
Total operating expenses	122,329		9,558		(4,932)		126,955
Total operating income (loss)	25,304		(6,955)		—		18,349
Other income (expense):
Interest income	120		2		—		122
Interest expense	(23,554)		—		—		(23,554)
Loss on early extinguishment of debt	(214)		—		—		(214)
Income (loss) before income taxes	1,656		(6,953)		—		(5,297)
Income tax (expense) benefit	(283)		2,389		—		2,106
Net income (loss)	$	1,373	$	(4,564)	$	—	$	(3,191)
Segment assets	$	3,910,152	$	241,371	$	—	$	4,151,523
Expenditures for segment assets	$	23,331	$	4	$	—	$	23,335

	Three Months Ended March 31, 2020
	Real Estate		Observatory		Intersegment Elimination		Total
Revenues:
Rental revenue	$	148,113	$	—	$	—	$	148,113
Intercompany rental revenue	11,536		—		(11,536)		—
Observatory revenue	—		19,544		—		19,544
Lease termination fees	211		—		—		211
Third-party management and other fees	346		—		—		346
Other revenue and fees	2,010		—		—		2,010
Total revenues	162,216		19,544		(11,536)		170,224
Operating expenses:
Property operating expenses	41,468		—		—		41,468
Intercompany rent expense	—		11,536		(11,536)		—
Ground rent expense	2,331		—		—		2,331
General and administrative expenses	15,951		—		—		15,951
Observatory expenses	—		8,154		—		8,154
Real estate taxes	29,254		—		—		29,254
Depreciation and amortization	46,085		8		—		46,093
Total operating expenses	135,089		19,698		(11,536)		143,251
Total operating income	27,127		(154)		—		26,973
Other income (expense):
Interest income	637		—		—		637
Interest expense	(19,618)		—		—		(19,618)
Loss on early extinguishment of debt	(86)		—		—		(86)
Income (loss) before income taxes	8,060		(154)		—		7,906
Income tax (expense) benefit	(227)		609		—		382
Net income	$	7,833	$	455	$	—	$	8,288
Segment assets	$	4,409,281	$	255,277	$	—	$	4,664,558
Expenditures for segment assets	$	26,570	$	1,237	$	—	$	27,807

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Description of Business and Organization (Details) ft² in Millions	3 Months Ended
	Mar. 31, 2021 ft² office_and_property parcel
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Area of real estate property (in square feet)	10.1
Office Building
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Area of real estate property (in square feet)	9.4
Number of properties | office_and_property	14
Office Building | Manhattan
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Area of real estate property (in square feet)	7.6
Number of properties | office_and_property	9
Office Building | Fairfield County, Connecticut and Westchester County, New York
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Area of real estate property (in square feet)	1.8
Number of properties | office_and_property	5
Long-term ground leasehold interests
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Number of properties | parcel	3
Retail Site | Manhattan and Westport, Connecticut
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Area of real estate property (in square feet)	0.2
Retail Site | Manhattan
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Area of real estate property (in square feet)	0.5
Number of properties | office_and_property	4
Retail Site | Westport, Connecticut
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Number of properties | office_and_property	2
Other Property | Stamford, Connecticut
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Area of real estate property (in square feet)	0.4
Empire State Realty Trust | Empire State Realty OP
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
OP units owned by the Company (as a percent)	60.30%

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Summary of Significant Accounting Policies (Details)	Mar. 31, 2021
Minimum
Accounting Policies [Line Items]
Observatory revenue realized during the first quarter, previous ten years (as a percent)	16.00%
Observatory revenue realized during the second quarter, previous ten years (as a percent)	26.00%
Observatory revenue realized during the third quarter, previous ten years (as a percent)	31.00%
Observatory revenue realized during the fourth quarter, previous ten years (as a percent)	23.00%
Maximum
Accounting Policies [Line Items]
Observatory revenue realized during the first quarter, previous ten years (as a percent)	18.00%
Observatory revenue realized during the second quarter, previous ten years (as a percent)	28.00%
Observatory revenue realized during the third quarter, previous ten years (as a percent)	33.00%
Observatory revenue realized during the fourth quarter, previous ten years (as a percent)	25.00%

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Deferred Costs, Acquired Lease Intangibles and Goodwill - Deferred Costs, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Leasing costs	$ 203,730	$ 203,905
Total deferred costs, gross amount	424,115	425,639
Less: accumulated amortization	(225,967)	(223,918)
Total deferred costs, net, excluding net deferred financing costs	198,148	201,721
Acquired in-place lease value and deferred leasing costs
Finite-Lived Intangible Assets [Line Items]
Acquired finite-lived intangible assets	180,131	181,336
Acquired above-market leases
Finite-Lived Intangible Assets [Line Items]
Acquired finite-lived intangible assets	$ 40,254	$ 40,398

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Deferred Costs, Acquired Lease Intangibles and Goodwill - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	Jun. 30, 2020
Deferred Costs [Line Items]
Amortization expense related to deferred leasing costs and acquired deferred leasing costs	$ 5,600	$ 5,900
Rental revenue related to the amortization of below-market leases, net of above-market leases	654	908
Goodwill	491,479		$ 491,479
Observatory
Deferred Costs [Line Items]
Fair value in excess of carrying value (less than) (as a percent)				10.00%
Observatory
Deferred Costs [Line Items]
Goodwill	227,500
Real estate
Deferred Costs [Line Items]
Goodwill	264,000
Lease agreements
Deferred Costs [Line Items]
Amortization expense related to acquired lease intangibles	1,700	$ 2,000
Unsecured revolving credit facility | Revolving credit facility
Deferred Costs [Line Items]
Net deferred financing costs	$ 8,900		$ 2,100

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Deferred Costs, Acquired Lease Intangibles and Goodwill - Amortizing Acquired Intangible Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Acquired below-market ground leases, net
Acquired below-market ground leases	$ 396,916	$ 396,916
Less: accumulated amortization	(54,139)	(52,181)
Acquired below-market ground leases, net	342,777	344,735
Acquired below-market leases, net
Acquired below-market leases	(77,686)	(78,451)
Less: accumulated amortization	47,574	46,746
Acquired below-market leases, net	$ (30,112)	$ (31,705)

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Debt - Long-Term Debt (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020	Mar. 17, 2020
Debt Instrument [Line Items]
Unsecured revolving credit facility	$ 0	$ 0
Total principal	2,150,876,000
Deferred financing costs, net	(23,487,000)	(17,367,000)
Fixed rate mortgage debt
Debt Instrument [Line Items]
Fixed rate mortgage debt	785,876,000	786,884,000
Mortgages, senior notes, and unsecured term loan facilities, not including unsecured revolving credit facility
Debt Instrument [Line Items]
Total principal	2,150,876,000	2,151,884,000
Deferred financing costs, net	(14,575,000)	(15,235,000)
Total	2,136,301,000	2,136,649,000
Metro Center | Fixed rate mortgage debt
Debt Instrument [Line Items]
Fixed rate mortgage debt	$ 86,803,000	87,382,000
Stated Rate (as a percent)	3.59%
Effective Rate (as a percent)	3.68%
10 Union Square | Fixed rate mortgage debt
Debt Instrument [Line Items]
Fixed rate mortgage debt	$ 50,000,000	50,000,000
Stated Rate (as a percent)	3.70%
Effective Rate (as a percent)	3.97%
1542 Third Avenue | Fixed rate mortgage debt
Debt Instrument [Line Items]
Fixed rate mortgage debt	$ 30,000,000	30,000,000
Stated Rate (as a percent)	4.29%
Effective Rate (as a percent)	4.53%
First Stamford Place | Fixed rate mortgage debt
Debt Instrument [Line Items]
Fixed rate mortgage debt	$ 180,000,000	180,000,000
Stated Rate (as a percent)	4.28%
Effective Rate (as a percent)	4.71%
First Stamford Place - First Lien | Fixed rate mortgage debt
Debt Instrument [Line Items]
Stated Rate (as a percent)	4.09%
Face amount	$ 164,000,000
First Stamford Place - Second Lien | Fixed rate mortgage debt
Debt Instrument [Line Items]
Stated Rate (as a percent)	6.25%
Face amount	$ 16,000,000
1010 Third Avenue and 77 West 55th Street | Fixed rate mortgage debt
Debt Instrument [Line Items]
Fixed rate mortgage debt	$ 37,278,000	37,477,000
Stated Rate (as a percent)	4.01%
Effective Rate (as a percent)	4.23%
250 West 57th Street | Fixed rate mortgage debt
Debt Instrument [Line Items]
Fixed rate mortgage debt	$ 180,000,000	180,000,000
Stated Rate (as a percent)	2.83%
Effective Rate (as a percent)	3.19%
10 Bank Street | Fixed rate mortgage debt
Debt Instrument [Line Items]
Fixed rate mortgage debt	$ 31,795,000	32,025,000
Stated Rate (as a percent)	4.23%
Effective Rate (as a percent)	4.36%
383 Main Avenue | Fixed rate mortgage debt
Debt Instrument [Line Items]
Fixed rate mortgage debt	$ 30,000,000	30,000,000
Stated Rate (as a percent)	4.44%
Effective Rate (as a percent)	4.55%
1333 Broadway | Fixed rate mortgage debt
Debt Instrument [Line Items]
Fixed rate mortgage debt	$ 160,000,000	160,000,000
Stated Rate (as a percent)	4.21%
Effective Rate (as a percent)	4.29%
Senior unsecured notes, Series A | Senior unsecured notes
Debt Instrument [Line Items]
Total	$ 100,000,000	100,000,000
Stated Rate (as a percent)	3.93%
Effective Rate (as a percent)	3.96%
Senior unsecured notes, Series B | Senior unsecured notes
Debt Instrument [Line Items]
Total	$ 125,000,000	125,000,000
Stated Rate (as a percent)	4.09%
Effective Rate (as a percent)	4.12%
Senior unsecured notes, Series C | Senior unsecured notes
Debt Instrument [Line Items]
Total	$ 125,000,000	125,000,000
Stated Rate (as a percent)	4.18%
Effective Rate (as a percent)	4.21%
Senior unsecured notes, Series D | Senior unsecured notes
Debt Instrument [Line Items]
Total	$ 115,000,000	115,000,000
Stated Rate (as a percent)	4.08%
Effective Rate (as a percent)	4.11%
Senior unsecured notes, Series E | Senior unsecured notes
Debt Instrument [Line Items]
Total	$ 160,000,000	160,000,000
Stated Rate (as a percent)	4.26%
Effective Rate (as a percent)	4.27%
Senior unsecured notes, Series F | Senior unsecured notes
Debt Instrument [Line Items]
Total	$ 175,000,000	175,000,000
Stated Rate (as a percent)	4.44%
Effective Rate (as a percent)	4.45%
Senior unsecured notes, Series G | Senior unsecured notes
Debt Instrument [Line Items]
Total	$ 100,000,000	100,000,000
Stated Rate (as a percent)	3.61%		3.61%
Effective Rate (as a percent)	4.89%
Face amount			$ 100,000,000
Senior unsecured notes, Series H | Senior unsecured notes
Debt Instrument [Line Items]
Total	$ 75,000,000	75,000,000
Stated Rate (as a percent)	3.73%		3.73%
Effective Rate (as a percent)	5.00%
Face amount			$ 75,000,000
Unsecured term loan facilities | Revolving credit facility
Debt Instrument [Line Items]
Unsecured revolving credit facility	$ 215,000,000	215,000,000
Effective Rate (as a percent)	3.56%
Unsecured term loan facilities | Revolving credit facility | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	1.20%
Unsecured revolving credit facility | Revolving credit facility
Debt Instrument [Line Items]
Unsecured revolving credit facility	$ 0	0
Effective Rate (as a percent)	0.00%
Unsecured revolving credit facility | Revolving credit facility | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	1.30%
Unsecured term loan facility | Revolving credit facility
Debt Instrument [Line Items]
Unsecured revolving credit facility	$ 175,000,000	$ 175,000,000
Effective Rate (as a percent)	3.60%
Unsecured term loan facility | Revolving credit facility | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	1.50%

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Debt - Aggregate Required Principal Payments (Details) $ in Thousands	Mar. 31, 2021 USD ($)
Amortization
2021	$ 3,082
2022	5,628
2023	7,876
2024	7,958
2025	5,826
Thereafter	20,084
Total	50,454
Maturities
2021	0
2022	0
2023	0
2024	77,675
2025	315,000
Thereafter	1,707,747
Total	2,100,422
Total
2021	3,082
2022	5,628
2023	7,876
2024	85,633
2025	320,826
Thereafter	1,727,831
Total	$ 2,150,876

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Debt - Deferred Financing Costs, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Debt Disclosure [Abstract]
Financing costs	$ 42,689		$ 35,365
Less: accumulated amortization	(19,202)		(17,998)
Total deferred financing costs, net	23,487		$ 17,367
Amortization related to deferred financing costs	$ 1,200	$ 900

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Debt - Unsecured Revolving Credit and Term Loan Facilities (Details)		12 Months Ended
	Mar. 31, 2021 USD ($) option	Dec. 31, 2021	Dec. 31, 2020 USD ($)
Line of Credit Facility [Line Items]
Outstanding borrowings	$ 0		$ 0
Unsecured revolving credit facility and term loan | Revolving credit facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity	1,065,000,000.000
Unsecured revolving credit facility higher borrowing capacity option	1,500,000,000
Unsecured revolving credit facility | Revolving credit facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity	850,000,000.0
Outstanding borrowings	$ 0		0
Number of options to extend maturity | option	2
Extension period (in months)	6 months
Term loan facility | Revolving credit facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 215,000,000.0
Outstanding borrowings	215,000,000		215,000,000
Unsecured term loan facility | Revolving credit facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity	175,000,000
Unsecured revolving credit facility higher borrowing capacity option	225,000,000
Outstanding borrowings	$ 175,000,000		$ 175,000,000
Minimum | Unsecured revolving credit facility | Revolving credit facility
Line of Credit Facility [Line Items]
Extension fee, as a percent of outstanding commitments under revolving credit facility	0.0625%
Maximum | Unsecured revolving credit facility | Revolving credit facility
Line of Credit Facility [Line Items]
Extension fee, as a percent of outstanding commitments under revolving credit facility	0.075%
Forecast | Unsecured term loan facility | Revolving credit facility
Line of Credit Facility [Line Items]
Prepayment fee, as a percent of principal amount prepaid		1.00%

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Debt - Senior Unsecured Notes (Details) - Senior notes - USD ($)	Mar. 17, 2020	Mar. 31, 2021
Series G and Series H Senior Unsecured Notes
Debt Instrument [Line Items]
Face amount	$ 175,000,000
Issue price, as a percent of aggregate principal amount	100.00%
Senior unsecured notes, Series G
Debt Instrument [Line Items]
Face amount	$ 100,000,000
Stated rate (as a percent)	3.61%	3.61%
Senior unsecured notes, Series H
Debt Instrument [Line Items]
Face amount	$ 75,000,000
Stated rate (as a percent)	3.73%	3.73%

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Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Payables and Accruals [Abstract]
Accrued capital expenditures	$ 60,536	$ 58,057
Accounts payable and accrued expenses	30,032	32,309
Interest rate swap agreements liability	7,450	8,849
Accrued interest payable	3,436	3,219
Due to affiliated companies	927	769
Total accounts payable and accrued expenses	$ 102,381	$ 103,203

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Financial Instruments and Fair Values - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap agreements liability	$ 7,450,000		$ 8,849,000
Interest Rate Swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap agreements liability	7,500,000
Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Aggregate notional value	265,000,000.0		265,000,000.0
Net unrealized gain (loss)	2,900,000	$ (16,900,000)
Net loss to be reclassified into interest expense within the next 12 months	(11,500,000)
Accounts payable and accrued expenses | Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap agreements liability	$ 7,500,000		$ 8,800,000

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Financial Instruments and Fair Values - Summary of the Terms of Agreements and the Fair Value of Derivative Financial Instruments (Details) - Designated as Hedging Instrument - Cash Flow Hedging - LIBOR - Interest Rate Swap, One Month LIBOR, 2.1485% - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Derivatives, Fair Value [Line Items]
Notional Amount	$ 265,000,000
Pay Rate	2.1485%
Asset	$ 0	$ 0
Liability	$ (7,450,000)	$ (8,849,000)

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Financial Instruments and Fair Values - Effect of Derivative Financial Instruments Designated as Cash Flow Hedges (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in other comprehensive income (loss)	$ 59	$ (17,695)
Amount of gain (loss) reclassified from accumulated other comprehensive (loss) into interest expense	(2,869)	(796)
Interest expense	(23,554)	(19,618)
Interest Rate Swap
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in other comprehensive income (loss)	59	(17,695)
Amount of gain (loss) reclassified from accumulated other comprehensive (loss) into interest expense	(2,869)	(796)
Reclassification out of Accumulated Other Comprehensive Income | Accumulated other comprehensive income (loss) | Interest Rate Swap
Derivative Instruments, Gain (Loss) [Line Items]
Interest expense	$ (2,869)	$ (796)

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Financial Instruments and Fair Values - Summary of the Carrying and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap included in accounts payable and accrued expenses	$ 7,450	$ 8,849
Carrying Value | Mortgage notes payable
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	775,276	775,929
Carrying Value | Senior notes | Senior unsecured notes - Series A, B, C, D, E, F, G and H
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	973,214	973,159
Estimated Fair Value | Mortgage notes payable
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	772,147	808,294
Estimated Fair Value | Senior notes | Senior unsecured notes - Series A, B, C, D, E, F, G and H
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	986,839	1,039,857
Level 1 | Estimated Fair Value | Mortgage notes payable
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	0
Level 1 | Estimated Fair Value | Senior notes | Senior unsecured notes - Series A, B, C, D, E, F, G and H
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	0
Level 2 | Estimated Fair Value | Mortgage notes payable
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	0
Level 2 | Estimated Fair Value | Senior notes | Senior unsecured notes - Series A, B, C, D, E, F, G and H
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	0
Level 3 | Estimated Fair Value | Mortgage notes payable
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	772,147	808,294
Level 3 | Estimated Fair Value | Senior notes | Senior unsecured notes - Series A, B, C, D, E, F, G and H
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	986,839	1,039,857
Revolving credit facility | Carrying Value | Unsecured term loan facilities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	387,811	387,561
Revolving credit facility | Estimated Fair Value | Unsecured term loan facilities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	390,000	390,000
Revolving credit facility | Level 1 | Estimated Fair Value | Unsecured term loan facilities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	0
Revolving credit facility | Level 2 | Estimated Fair Value | Unsecured term loan facilities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	0
Revolving credit facility | Level 3 | Estimated Fair Value | Unsecured term loan facilities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	390,000	390,000
Interest Rate Swap
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap included in accounts payable and accrued expenses	7,500
Interest Rate Swap | Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap included in accounts payable and accrued expenses	7,450	8,849
Interest Rate Swap | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap included in accounts payable and accrued expenses	7,450	8,849
Interest Rate Swap | Level 1 | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap included in accounts payable and accrued expenses	0	0
Interest Rate Swap | Level 2 | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap included in accounts payable and accrued expenses	7,450	8,849
Interest Rate Swap | Level 3 | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap included in accounts payable and accrued expenses	$ 0	$ 0

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Leases - Narrative (Details) $ in Thousands	Mar. 31, 2021 USD ($) property	Dec. 31, 2020 USD ($)
Operating Leases [Line Items]
Right-of-use assets	$ 29,051	$ 29,104
Lease liabilities	$ 29,051	$ 29,104
Number of properties subject to ground leases | property	3
Weighted average discount rate	4.50%
Weighted average remaining lease term (in years)	49 years 1 month 6 days
Minimum
Operating Leases [Line Items]
Term of lease (in years)	1 year
Maximum
Operating Leases [Line Items]
Term of lease (in years)	21 years

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Leases - Components of Rental Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Leases [Abstract]
Fixed payments	$ 125,773	$ 130,514
Variable payments	14,458	17,599
Total rental revenue	$ 140,231	$ 148,113

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Leases - Future Contractual Minimum Lease Payments On Non-Cancellable Operating Leases To Be Received (Details) $ in Thousands	Mar. 31, 2021 USD ($)
Leases [Abstract]
Remainder of 2021	$ 369,719
2022	490,994
2023	471,638
2024	435,036
2025	396,144
Thereafter	1,859,648
Total future minimum lease payments on non-cancellable operating leases to be received	$ 4,023,179

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Leases - Future Minimum Lease Payments on Ground Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Remainder of 2021	$ 1,139
2022	1,518
2023	1,518
2024	1,518
2025	1,518
Thereafter	65,262
Total undiscounted cash flows	72,473
Present value discount	(43,422)
Ground lease liabilities	$ 29,051	$ 29,104

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Commitments and Contingencies - Legal Proceedings (Details) - New York State Supreme Court, New York County $ in Millions		1 Months Ended
	Aug. 26, 2020 USD ($)	Oct. 31, 2014 participant
Loss Contingencies [Line Items]
Number of plaintiffs opting out of settlement (participant) | participant		12
Amount awarded to claimants | $	$ 1.2
Interest period (in years)	7 years

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Commitments and Contingencies - Unfunded Capital Expenditures (Details) $ in Millions	Mar. 31, 2021 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Estimated capital expenditures to be incurred	$ 99.3

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Equity - Shares and Units (Details)	3 Months Ended
	Mar. 31, 2021 shares	May 16, 2019 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
OP Unit, redemption term for cash (in years)	1 year
OP Unit, exchange ratio to common stock	1
Dividends on common stock received until performance criteria met for LTIP units (as a percent)	10.00%
Dividends on common stock received after performance criteria met for LTIP units (as a percent)	90.00%
Dividends on common stock received in periods after performance criteria met for LTIP units (as a percent)	100.00%
OP units outstanding (in shares)	285,622,197
Empire State Realty Trust
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
OP units owned by the Company (in shares)	172,331,871
Other Partners, Certain Directors, Officers And Other Members Of Executive Management
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
OP units not owned by the Company (in shares)	113,290,326
Empire State Realty OP | Empire State Realty Trust
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
OP units owned by the Company (as a percent)	60.30%
Empire State Realty OP | Other Partners, Certain Directors, Officers And Other Members Of Executive Management
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
OP units not owned by the Company (as a percent)	39.70%
2019 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized under the plan (in shares)	11,000,000.0	11,000,000.0

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Equity - Change in Net Income Attributable to Common Shareholders (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Equity [Abstract]
Net income (loss) attributable to common stockholders	$ (2,621)	$ 4,495
Increase in additional paid-in capital for the conversion of OP Units into common stock	2,689	7,661
Change from net income (loss) attributable to common stockholders and transfers from non-controlling interests	$ 68	$ 12,156

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Equity - Equity Securities Repurchased (Details) - USD ($)	1 Months Ended
	Mar. 31, 2021	Feb. 28, 2021	Jan. 31, 2021
Equity [Abstract]
Stock repurchase authorized amount	$ 500,000,000
Total Number of Shares Purchased (in shares)	0	45,732	337,339
Weighted Average Price Paid per Share (in USD per share)	$ 0	$ 9.65	$ 9.17
Maximum Approximate Dollar Value Available for Future Purchase	$ 496,467,000	$ 496,467,000	$ 496,908,000

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Equity - Private Perpetual Preferred Units (Details) - $ / shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Preferred Units [Line Items]
Dividends per share (in USD per share)	$ 0	$ 0.105
Private Perpetual Preferred Units, Series 2019
Preferred Units [Line Items]
Private perpetual preferred units, issued (in shares)	4,664,038		4,664,038
Private perpetual preferred units, per unit liquidation preference (in USD per share)	$ 13.52		$ 13.52
Cumulative preferential annual cash distributions (in USD per share)	$ 0.70
Private Perpetual Preferred Units, Series 2014
Preferred Units [Line Items]
Private perpetual preferred units, issued (in shares)	1,560,360		1,560,360
Private perpetual preferred units issued during period (in shares)	1,560,360
Private perpetual preferred units, per unit liquidation preference (in USD per share)	$ 16.62		$ 16.62
Dividends per share (in USD per share)	$ 0.60

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Equity - Dividends and Distributions (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Equity [Abstract]
Dividends paid to common shareholders	$ 0	$ 18,987
Distributions paid to OP unitholders	0	12,600
Private perpetual preferred unit distributions	$ 1,050	$ 1,050

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Equity - Incentive and Share-Based Compensation (Details) $ / shares in Units, $ in Millions	1 Months Ended				3 Months Ended			5 Months Ended
	Mar. 31, 2021 USD ($) vesting_installment shares	Jun. 30, 2020 USD ($) shares	May 31, 2020 USD ($) vesting_installment shares	Mar. 31, 2020 USD ($) vesting_installment shares	Mar. 31, 2021 USD ($) $ / shares shares	Jun. 30, 2020	Mar. 31, 2020 USD ($)	Dec. 31, 2020 USD ($) shares	May 16, 2019 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Retirement age (in years)					65 years	65 years	60 years
Expected volatility rate look-back period (in years)					6 years
Weighted-average per unit or share fair value (in USD per share) | $ / shares					$ 8.38
Period of service, upon completion of which, grantee's LTIP unit and restricted stock awards will immediately vest (in years)					10 years
2019 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized under the plan (in shares)	11,000,000.0				11,000,000.0				11,000,000.0
Number of shares that remain available for future issuance (in shares)	7,800,000				7,800,000
Long-Term Incentive Plan Unit and Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of share-based awards granted in period | $					$ 18.3
Weighted-average per unit or share fair value (in USD per share) | $ / shares					$ 8.38
Dividend rate (as a percent)					2.60%
Risk-free interest rate, minimum (as a percent)					0.12%
Risk free interest rate, maximum (as a percent)					0.32%
Expected price volatility, minimum (as a percent)					36.00%
Expected price volatility, maximum (as a percent)					53.00%
Time Based Long-Term Incentive Plan Unit and Time Restricted Shares | March 2021 Awards Granted
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of share-based awards granted in period | $	$ 1.5
Award vesting period (in years)	5 years
Time Based Long-Term Incentive Plan Unit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Threshold of continuous service for retirement eligibility (in years)					10 years
Time Based Long-Term Incentive Plan Unit | March 2021 Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	128,419
Fair value of share-based awards granted in period | $	$ 2.7
Award vesting period (in years)	4 years
Number of vesting installments | vesting_installment	3
Time Restricted Shares | March 2021 Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	113,333
Market Based Long-Term Incentive Plan Unit | March 2021 Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	192,760
Fair value of share-based awards granted in period | $	$ 1.5
Award vesting period (in years)	3 years
Number of vesting installments | vesting_installment	2
Tranche one | Time Based Long-Term Incentive Plan Unit and Time Restricted Shares | March 2021 Awards Granted
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage	30.00%
Tranche two | Time Based Long-Term Incentive Plan Unit and Time Restricted Shares | March 2021 Awards Granted
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage	30.00%
Tranche three | Time Based Long-Term Incentive Plan Unit and Time Restricted Shares | March 2021 Awards Granted
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage	40.00%
2019 Plan Units | Time Based Long-Term Incentive Plan Unit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)			63,229	113,971
Fair value of share-based awards granted in period | $			$ 0.4	$ 2.3
Award vesting period (in years)				4 years
Number of vesting installments | vesting_installment				3
2019 Plan Units | Time Restricted Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)				158,806
2019 Plan Units | Market Based Long-Term Incentive Plan Unit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)				502,475
Fair value of share-based awards granted in period | $				$ 2.3
Award vesting period (in years)			3 years	3 years
Number of vesting installments | vesting_installment			2	2
Awards that meet age and service requirements for vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Noncash share-based compensation expense recognized | $					$ 1.0		$ 1.6
Unrecognized compensation expense | $	$ 2.1				$ 2.1
Unrecognized compensation expense, period for recognition (in years)					2 years 8 months 12 days
Awards that do not meet age and service requirements for vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Noncash share-based compensation expense recognized | $					$ 3.8		$ 4.3
Unrecognized compensation expense | $	$ 38.8				$ 38.8
Unrecognized compensation expense, period for recognition (in years)					2 years 8 months 12 days
Executive Officer | Time Based Long-Term Incentive Plan Unit | March 2021 Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	364,199
Fair value of share-based awards granted in period | $	$ 3.4
Executive Officer | Time Based Long-Term Incentive Plan Unit | March 2021 Awards Granted
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	46,168
Executive Officer | Time Based Long-Term Incentive Plan Unit | Awards Granted in 2017, 2018, 2019 and 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)					3 years
Vesting percentage of award face amount	125.00%				125.00%
Executive Officer | Market Based Long-Term Incentive Plan Unit | March 2021 Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	1,007,156
Fair value of share-based awards granted in period | $	$ 6.9
Executive Officer | Tranche one | Time Based Long-Term Incentive Plan Unit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	39,472			23,049
Executive Officer | Tranche two | Time Based Long-Term Incentive Plan Unit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	196,257			601,331
Award vesting period (in years)	3 years			3 years
Executive Officer | Tranche three | Time Based Long-Term Incentive Plan Unit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of vesting installments | vesting_installment	2			2
Executive Officer | 2019 Plan Units, connected with bonus program | Time Based Long-Term Incentive Plan Unit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	235,729			624,380
Fair value of share-based awards granted in period | $	$ 2.2			$ 4.4
Vesting percentage of award face amount	120.00%				120.00%
Executive Officer | 2019 Plan Units | Time Based Long-Term Incentive Plan Unit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)			82,199	745,155
Fair value of share-based awards granted in period | $			$ 0.5	$ 5.6
Executive Officer | 2019 Plan Units | Market Based Long-Term Incentive Plan Unit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)			116,927	3,358,767
Fair value of share-based awards granted in period | $			$ 0.5	$ 14.0
Reduction of grants (in shares)		666,933
Fair value of reduction of share-based awards granted in period | $		$ 2.8
Certain Other Employees | Time Based Long-Term Incentive Plan Unit | March 2021 Awards Granted
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	85,409
Certain Other Employees | Time Restricted Shares | March 2021 Awards Granted
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	7,562
Certain Other Employees | 2019 Plan Units | Market Based Long-Term Incentive Plan Unit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Reduction of grants (in shares)		99,630
Fair value of reduction of share-based awards granted in period | $		$ 0.5
Director | 2019 Plan Units | Time Based Long-Term Incentive Plan Unit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)			171,153					31,117
Fair value of share-based awards granted in period | $			$ 1.1					$ 0.2
Award vesting period (in years)			3 years
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Age of grantee at which LTIP unit and restricted stock awards immediately vest (in years)					60 years
Minimum | Long-Term Incentive Plan Unit and Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)					2 years
Minimum | Time Based Long-Term Incentive Plan Unit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)					3 years
Minimum | Market Based Long-Term Incentive Plan Unit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)					3 years
Minimum | 2019 Plan Units | Time Based Long-Term Incentive Plan Unit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)			3 years
Number of vesting installments | vesting_installment			2
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Age of grantee at which LTIP unit and restricted stock awards immediately vest (in years)					65 years
Maximum | Long-Term Incentive Plan Unit and Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)					5 years 3 months 18 days
Maximum | Time Based Long-Term Incentive Plan Unit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)					5 years
Maximum | Market Based Long-Term Incentive Plan Unit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)					4 years
Maximum | 2019 Plan Units | Time Based Long-Term Incentive Plan Unit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)			4 years
Number of vesting installments | vesting_installment			3
Median | Time Based Long-Term Incentive Plan Unit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)					4 years

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Equity - Summary of Restricted Stock and LTIP Unit Activity (Details)	3 Months Ended
	Mar. 31, 2021 $ / shares shares
Weighted Average Grant Fair Value
Beginning balance, Unvested (in USD per share) | $ / shares	$ 6.94
Vested (in USD per share) | $ / shares	11.94
Granted (in USD per share) | $ / shares	8.38
Forfeited or unearned (in USD per share) | $ / shares	5.47
Ending balance, Unvested (in USD per share) | $ / shares	$ 7.02
Restricted Stock
Restricted Stock and LTIP Units
Beginning balance, Unvested (in shares)	217,700
Vested (in shares)	(70,338)
Granted (in shares)	120,895
Forfeited or unearned (in shares)	(9,495)
Ending balance, Unvested (in shares)	258,762
LTIP Units
Restricted Stock and LTIP Units
Beginning balance, Unvested (in shares)	7,750,284
Vested (in shares)	(847,406)
Granted (in shares)	2,059,840
Forfeited or unearned (in shares)	(1,417,107)
Ending balance, Unvested (in shares)	7,545,611

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Equity - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Numerator - Basic:
Net income (loss)	$ (3,191)	$ 8,288
Private perpetual preferred unit distributions	(1,050)	(1,050)
Net income (loss) attributable to non-controlling interests	1,620	(2,743)
Earnings allocated to unvested shares	0	(11)
Net income (loss) attributable to common stockholders – basic	(2,621)	4,484
Numerator - Diluted:
Net income (loss)	(3,191)	8,288
Private perpetual preferred unit distributions	(1,050)	(1,050)
Earnings allocated to unvested shares	0	(11)
Net income (loss) attributable to common stockholders – diluted	$ (4,241)	$ 7,227
Denominator:
Weighted average shares outstanding - basic (in shares)	171,735,000	181,741,000
Operating partnership units (in shares)	106,146,000	110,904,000
Effect of dilutive securities:
Stock-based compensation plans (in shares)	0	0
Weighted average shares outstanding - diluted (in shares)	277,881,000	292,645,000
Earnings (loss) per share:
Basic (in USD per share)	$ (0.02)	$ 0.02
Diluted (in USD per share)	$ (0.02)	$ 0.02
Antidilutive securities (in shares)	315,595	399,894

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Related Party Transactions (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2021 USD ($) ft² property	Mar. 31, 2020 USD ($)
Related Party Transaction [Line Items]
Area of real estate property (in square feet) | ft²	10,100,000
Affiliated entities | Supervisory fee revenue
Related Party Transaction [Line Items]
Revenue from related parties	$ 200	$ 200
Affiliated entities | Property management fee revenue
Related Party Transaction [Line Items]
Revenue from related parties	40	100
Affiliated entities | Leased space rental
Related Party Transaction [Line Items]
Revenue from related parties	$ 100	$ 100
Number of properties | property	1
Notice period for lease cancellation (in days)	90 days
Undivided interest
Related Party Transaction [Line Items]
Area of real estate property (in square feet) | ft²	5,447
Chairman emeritus and employee | Leased space rental
Related Party Transaction [Line Items]
Percentage of lease space occupied by Chairman emeritus and employee	15.00%

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Segment Reporting - Narrative (Details)	3 Months Ended
	Mar. 31, 2021 segment
Segment Reporting [Abstract]
Number of reportable segments	2

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Segment Reporting - Components of Segment Net Income (Loss) for Each Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Revenues:
Rental revenue	$ 140,231	$ 148,113
Intercompany rental revenue	0	0
Observatory revenue	2,603	19,544
Lease termination fees	1,289	211
Third-party management and other fees	276	346
Other revenue and fees	905	2,010
Total revenues	145,304	170,224
Operating expenses:
Property operating expenses	30,279	41,468
Intercompany rent expense	0	0
Ground rent expense	2,331	2,331
General and administrative expenses	13,853	15,951
Observatory expenses	4,588	8,154
Real estate taxes	31,447	29,254
Depreciation and amortization	44,457	46,093
Total operating expenses	126,955	143,251
Total operating income	18,349	26,973
Other income (expense):
Interest income	122	637
Interest expense	(23,554)	(19,618)
Loss on early extinguishment of debt	(214)	(86)
Income (loss) before income taxes	(5,297)	7,906
Income tax (expense) benefit	2,106	382
Net income (loss)	(3,191)	8,288
Segment assets	4,151,523	4,664,558	$ 4,150,695
Expenditures for segment assets	23,335	27,807
Intersegment Elimination
Revenues:
Intercompany rental revenue	(4,932)	(11,536)
Total revenues	(4,932)	(11,536)
Operating expenses:
Intercompany rent expense	(4,932)	(11,536)
General and administrative expenses	0	0
Depreciation and amortization	0	0
Total operating expenses	(4,932)	(11,536)
Total operating income	0	0
Other income (expense):
Interest income	0	0
Interest expense	0	0
Loss on early extinguishment of debt	0	0
Income (loss) before income taxes	0	0
Income tax (expense) benefit	0	0
Net income (loss)	0	0
Segment assets	0	0
Expenditures for segment assets	0	0
Real Estate | Operating Segments
Revenues:
Rental revenue	140,231	148,113
Intercompany rental revenue	4,932	11,536
Lease termination fees	1,289	211
Third-party management and other fees	276	346
Other revenue and fees	905	2,010
Total revenues	147,633	162,216
Operating expenses:
Property operating expenses	30,279	41,468
Ground rent expense	2,331	2,331
General and administrative expenses	13,853	15,951
Real estate taxes	31,447	29,254
Depreciation and amortization	44,419	46,085
Total operating expenses	122,329	135,089
Total operating income	25,304	27,127
Other income (expense):
Interest income	120	637
Interest expense	(23,554)	(19,618)
Loss on early extinguishment of debt	(214)	(86)
Income (loss) before income taxes	1,656	8,060
Income tax (expense) benefit	(283)	(227)
Net income (loss)	1,373	7,833
Segment assets	3,910,152	4,409,281
Expenditures for segment assets	23,331	26,570
Observatory | Operating Segments
Revenues:
Intercompany rental revenue	0	0
Observatory revenue	2,603	19,544
Total revenues	2,603	19,544
Operating expenses:
Intercompany rent expense	4,932	11,536
General and administrative expenses	0	0
Observatory expenses	4,588	8,154
Depreciation and amortization	38	8
Total operating expenses	9,558	19,698
Total operating income	(6,955)	(154)
Other income (expense):
Interest income	2	0
Interest expense	0	0
Loss on early extinguishment of debt	0	0
Income (loss) before income taxes	(6,953)	(154)
Income tax (expense) benefit	2,389	609
Net income (loss)	(4,564)	455
Segment assets	241,371	255,277
Expenditures for segment assets	$ 4	$ 1,237