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 June 30, 2022

☐ 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 July 29, 2022, there were 162,620,718 shares of Class A Common Stock, $0.01 par value per share, outstanding and 994,175 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 JUNE 30, 2022
	TABLE OF CONTENTS	PAGE
PART 1.	FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS
	Condensed Consolidated Balance Sheets as of June 30, 2022 (unaudited) and December 31, 2021	2
	Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2022 and 2021 (unaudited)	3
	Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2022 and 2021 (unaudited)	4
	Condensed Consolidated Statements of Stockholders' Equity for the three and six months ended June 30, 2022 and 2021 (unaudited)	5
	Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021 (unaudited)	7
	Notes to Condensed Consolidated Financial Statements (unaudited)	9
ITEM 2.	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	28
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK	41
ITEM 4.	CONTROLS AND PROCEDURES	41
PART II.	OTHER INFORMATION	41
ITEM 1.	LEGAL PROCEEDINGS	41
ITEM 1A.	RISK FACTORS	42
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	42
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	42
ITEM 4.	MINE SAFETY DISCLOSURES	42
ITEM 5.	OTHER INFORMATION	42
ITEM 6.	EXHIBITS	43
SIGNATURES		44

1

ITEM 1. FINANCIAL STATEMENTS

Empire State Realty Trust, Inc.

Condensed Consolidated Balance Sheets

(amounts in thousands, except per share amounts)

	June 30, 2022		December 31, 2021
ASSETS	(unaudited)
Commercial real estate properties, at cost:
Land	$	334,598	$	336,278
Development costs	8,162		8,131
Building and improvements	3,193,137		3,156,508
	3,535,897		3,500,917
Less: accumulated depreciation	(1,137,231)		(1,072,938)
Commercial real estate properties, net	2,398,666		2,427,979
Cash and cash equivalents	359,424		423,695
Restricted cash	53,335		50,943
Tenant and other receivables	43,672		18,647
Deferred rent receivables	233,194		224,922
Prepaid expenses and other assets	82,256		76,549
Deferred costs, net	193,436		202,437
Acquired below-market ground leases, net	332,988		336,904
Right of use assets	28,781		28,892
Goodwill	491,479		491,479
Total assets	$	4,217,231	$	4,282,447
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net	$	916,657	$	948,769
Senior unsecured notes, net	973,555		973,373
Unsecured term loan facilities, net	388,507		388,223
Unsecured revolving credit facility	—		—
Accounts payable and accrued expenses	113,837		120,810
Acquired below-market leases, net	20,178		24,941
Ground lease liabilities	28,781		28,892
Deferred revenue and other liabilities	80,008		84,358
Tenants’ security deposits	29,615		28,749
Total liabilities	2,551,138		2,598,115
Commitments and contingencies
Equity:
Empire State Realty Trust, Inc. stockholders' equity:
Preferred stock, $0.01 par value, 50,000 shares authorized, none issued or outstanding	—		—
Class A common stock, $0.01 par value, 400,000 shares authorized, 162,690 and 169,221 shares issued and outstanding in 2022 and 2021, respectively	1,626		1,692
Class B common stock, $0.01 par value, 50,000 shares authorized, 994 and 996 shares issued and outstanding in 2022 and 2021, respectively	10		10
Additional paid-in capital	1,076,854		1,150,884
Accumulated other comprehensive loss	(5,827)		(20,848)
Retained deficit	(114,860)		(133,610)
Total Empire State Realty Trust, Inc. stockholders' equity	957,803		998,128
Non-controlling interests in the Operating Partnership	663,469		643,012
Non-controlling interests in other partnerships	14,881		13,252
Private perpetual preferred units:
Private perpetual preferred units, $13.52 liquidation preference, 4,664 issued and outstanding in 2022 and 2021, respectively	21,936		21,936
Private perpetual preferred units, $16.62 liquidation preference, 1,560 issued and outstanding in 2022 and 2021	8,004		8,004
Total equity	1,666,093		1,684,332
Total liabilities and equity	$	4,217,231	$	4,282,447

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 June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Revenues:
Rental revenue	$	149,339	$	140,797	$	296,853	$	281,028
Observatory revenue	27,368		8,359		40,609		10,962
Lease termination fees	18,859		3,339		20,032		4,628
Third-party management and other fees	326		327		636		603
Other revenue and fees	2,130		586		3,926		1,491
Total revenues	198,022		153,408		362,056		298,712
Operating expenses:
Property operating expenses	37,433		28,793		76,077		59,072
Ground rent expenses	2,332		2,332		4,663		4,663
General and administrative expenses	15,876		14,089		29,562		27,942
Observatory expenses	7,776		5,268		13,991		9,856
Real estate taxes	29,802		31,354		59,806		62,801
Depreciation and amortization	58,304		45,088		125,410		89,545
Total operating expenses	151,523		126,924		309,509		253,879
Total operating income	46,499		26,484		52,547		44,833
Other income (expense):
Interest income	431		164		580		286
Interest expense	(25,042)		(23,422)		(50,056)		(46,976)
Loss on early extinguishment of debt	—		—		—		(214)
Gain on disposition of property	27,170		—		27,170		—
Income before income taxes	49,058		3,226		30,241		(2,071)
Income tax (expense) benefit	(363)		1,185		1,233		3,291
Net income	48,695		4,411		31,474		1,220
Net (income) loss attributable to non-controlling interests:
Non-controlling interests in the Operating Partnership	(18,224)		(1,285)		(11,305)		335
Non-controlling interests in other partnerships	159		—		222		—
Private perpetual preferred unit distributions	(1,051)		(1,051)		(2,101)		(2,101)
Net income (loss) attributable to common stockholders	$	29,579	$	2,075	$	18,290	$	(546)
Total weighted average shares:
Basic	167,118		171,615		168,099		172,183
Diluted	270,085		278,436		271,837		277,887
Earnings per share attributable to common stockholders:
Basic	$	0.18	$	0.01	$	0.11	$	0.00
Diluted	$	0.18	$	0.01	$	0.11	$	0.00
Dividends per share	$	0.035	$	0.035	$	0.070	$	0.035

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

3

Empire State Realty Trust, Inc.

Condensed Consolidated Statements of Comprehensive Income

(unaudited)

(amounts in thousands)

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Net income	$	48,695	$	4,411	$	31,474	$	1,220
Other comprehensive income:
Unrealized gain (loss) on valuation of interest rate swap agreements	10,057		(95)		19,819		(36)
Less: amount reclassified into interest expense	2,741		2,898		6,036		5,767
Other comprehensive income	12,798		2,803		25,855		5,731
Comprehensive income	61,493		7,214		57,329		6,951
Net income attributable to non-controlling interests and private perpetual preferred unitholders	(19,116)		(2,336)		(13,184)		(1,766)
Other comprehensive income attributable to non-controlling interests	(5,920)		(1,064)		(10,882)		(2,178)
Comprehensive income attributable to common stockholders	$	36,457	$	3,814	$	33,263	$	3,007

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 June 30, 2022 and 2021

(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 Loss		Retained Deficit		Total Stockholders' Equity		Non-controlling Interests		Private Perpetual Preferred Units		Total Equity
Balance at March 31, 2022	168,731	$	1,687	995	$	10	$	1,119,201	$	(12,730)	$	(129,747)	$	978,421	$	653,671	$	29,940	$	1,662,032
Conversion of operating partnership units and Class B shares to Class A shares	566	5		(1)	—		818		25		—		848		(848)		—		—
Repurchases of common shares	(6,611)	(67)		—	—		(43,482)		—		(8,890)		(52,439)		—		—		(52,439)
Equity compensation:
LTIP units	—	—		—	—		—		—		—		—		5,447		—		5,447
Restricted stock, net of forfeitures	4	1		—	—		317		—		—		318		—		—		318
Dividends and distributions	—	—		—	—		—		—		(5,802)		(5,802)		(3,905)		(1,051)		(10,758)
Net income	—	—		—	—		—		—		29,579		29,579		18,065		1,051		48,695
Other comprehensive income	—	—		—	—		—		6,878		—		6,878		5,920		—		12,798
Balance at June 30, 2022	162,690	$	1,626	994	$	10	$	1,076,854	$	(5,827)	$	(114,860)	$	957,803	$	678,350	$	29,940	$	1,666,093

	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 Loss		Retained Deficit		Total Stockholders' Equity		Non-controlling Interests		Private Perpetual Preferred Units		Total Equity
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
Conversion of operating partnership units and Class B shares to Class A shares	1,078	10		(4)	—		4,152		11		—		4,173		(4,173)		—		—
Repurchases of common shares	—	—		—	—		—		—		—		—		—		—		—
Equity compensation:													—						—
LTIP units	—	—		—	—		—		—		—		—		5,064		—		5,064
Restricted stock, net of forfeitures	(6)	1		—	—		239		—		—		240		—		—		240
Dividends and distributions	—	—		—	—		—		—		(6,063)		(6,063)		(3,391)		(1,051)		(10,505)
Net income	—	—		—	—		—		—		2,075		2,075		1,285		1,051		4,411
Other comprehensive income	—	—		—	—		—		1,739		—		1,739		1,064		—		2,803
Balance at June 30, 2021	172,399	$	1,724	1,001	$	10	$	1,151,979	$	(24,794)	$	(73,260)	$	1,055,659	$	647,609	$	29,940	$	1,733,208

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

5

Empire State Realty Trust, Inc.

Condensed Consolidated Statements of Stockholders' Equity

For The Six Months Ended June 30, 2022 and 2021

(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, 2021	169,221	$	1,692	996	$	10	$	1,150,884	$	(20,848)	$	(133,610)	$	998,128	$	656,264	$	29,940	$	1,684,332
Conversion of operating partnership units and Class B shares to Class A shares	1,140	11		(2)	—		2,286		48		—		2,345		(2,345)		—		—
Repurchases of common shares	(7,866)	(79)		—	—		(76,571)		—		12,210		(64,440)		—		—		(64,440)
Contributions from consolidated joint ventures	—	—		—	—		—		—		—		—		224		—		224
Equity compensation:
LTIP units	—	—		—	—		—		—		—		—		9,968		—		9,968
Restricted stock, net of forfeitures	195	2		—	—		255		—		—		257		—		—		257
Dividends and distributions	—	—		—	—		—		—		(11,750)		(11,750)		(7,726)		(2,101)		(21,577)
Net income	—	—		—	—		—		—		18,290		18,290		11,083		2,101		31,474
Other comprehensive income	—	—		—	—		—		14,973		—		14,973		10,882		—		25,855
Balance at June 30, 2022	162,690	$	1,626	994	$	10	$	1,076,854	$	(5,827)	$	(114,860)	$	957,803	$	678,350	$	29,940	$	1,666,093

	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, 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	2,149	21		(9)	—		6,841		(27)		—		6,835		(6,835)		—		—
Repurchases of common shares	(383)	(4)		—	—		(2,551)		—		(978)		(3,533)		—		—		(3,533)
Equity compensation:
LTIP units	—	—		—	—		—		—		—		—		9,874		—		9,874
Restricted stock, net of forfeitures	78	2		—	—		162		—		—		164		—		—		164
Dividends and distributions	—	—		—	—		—		—		(6,063)		(6,063)		(3,391)		(2,101)		(11,555)
Net income (loss)	—	—		—	—		—		—		(546)		(546)		(335)		2,101		1,220
Other comprehensive income	—	—		—	—		—		3,553		—		3,553		2,178		—		5,731
Balance at June 30, 2021	172,399	$	1,724	1,001	$	10	$	1,151,979	$	(24,794)	$	(73,260)	$	1,055,659	$	647,609	$	29,940	$	1,733,208

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

6

Empire State Realty Trust, Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited)

(amounts in thousands)

	Six Months Ended June 30,
	2022		2021
Cash Flows From Operating Activities
Net income	$	31,474	$	1,220
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	125,410		89,545
Gain on disposition of property	(27,170)		—
Amortization of non-cash items within interest expense	5,169		5,398
Amortization of acquired above- and below-market leases, net	(3,459)		(1,371)
Amortization of acquired below-market ground leases	3,916		3,916
Straight-lining of rental revenue	(11,192)		(10,110)
Equity based compensation	10,225		10,038
Loss on early extinguishment of debt	—		214
Increase (decrease) in cash flows due to changes in operating assets and liabilities:
Security deposits	866		(4,523)
Tenant and other receivables	(24,831)		2,303
Deferred leasing costs	(21,826)		(8,372)
Prepaid expenses and other assets	(1,242)		5,783
Accounts payable and accrued expenses	(2,235)		(5,232)
Deferred revenue and other liabilities	(1,427)		(5,080)
Net cash provided by operating activities	83,678		83,729
Cash Flows From Investing Activities
Development costs	(31)		(98)
Additions to building and improvements	(56,614)		(48,347)
Net cash used in investing activities	(56,645)		(48,445)

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

7

Empire State Realty Trust, Inc.

Condensed Consolidated Statements of Cash Flows (continued)

(unaudited)

(amounts in thousands)

	Six Months Ended June 30,
	2022		2021
Cash Flows From Financing Activities
Repayment of mortgage notes payable	(3,119)		(2,026)
Deferred financing costs	—		(7,539)
Contributions from consolidated joint ventures	224		—
Repurchases of common shares	(64,440)		(3,533)
Private perpetual preferred unit distributions	(2,101)		(2,101)
Dividends paid to common stockholders	(11,750)		(6,063)
Distributions paid to non-controlling interests in the operating partnership	(7,726)		(3,391)
Net cash used in financing activities	(88,912)		(24,653)
Net increase in cash and cash equivalents and restricted cash	(61,879)		10,631
Cash and cash equivalents and restricted cash—beginning of period	474,638		567,939
Cash and cash equivalents and restricted cash—end of period	$	412,759	$	578,570
Reconciliation of Cash and Cash Equivalents and Restricted Cash:
Cash and cash equivalents at beginning of period	$	423,695	$	526,714
Restricted cash at beginning of period	50,943		41,225
Cash and cash equivalents and restricted cash at beginning of period	$	474,638	$	567,939
Cash and cash equivalents at end of period	$	359,424	$	540,604
Restricted cash at end of period	53,335		37,966
Cash and cash equivalents and restricted cash at end of period	$	412,759	$	578,570
Supplemental disclosures of cash flow information:
Cash paid for interest	$	40,199	$	38,639
Cash paid for income taxes	$	268	$	299
Non-cash investing and financing activities:
Building and improvements included in accounts payable and accrued expenses	$	67,815	$	52,891
Write-off of fully depreciated assets	38,518		8,729
Derivative instruments at fair values included in prepaid expenses and other assets	4,082		—
Derivative instruments at fair values included in accounts payable and accrued expenses	19,695		6,176
Conversion of operating partnership units and Class B shares to Class A shares	2,345		6,835
Disposal of land in connection with foreclosure	1,680		—
Extinguishment of debt in connection with property disposition	30,000

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

8

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 New York City focused real estate investment trust ("REIT") that owns and manages a well-positioned property portfolio of office, retail and multifamily assets in Manhattan and the greater New York metropolitan area. As the owner of the Empire State Building, the World’s Most Famous Building, we also own and operate our iconic, newly reimagined Observatory Experience.

    As of June 30, 2022, our total portfolio contained 9.9 million rentable square feet of office, retail and multifamily space. We owned 13 office properties (including three long-term ground leasehold interests) encompassing approximately 9.2 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 four office properties are located in Fairfield County, Connecticut and Westchester County, New York, encompassing in the aggregate approximately 1.6 million rentable square feet. The majority of square footage for these four 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 June 30, 2022, 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. Additionally, at June 30, 2022, our portfolio included two multifamily properties totaling 625 units.

     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 June 30, 2022, we owned approximately 59.5% 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, 2021 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, 2021 contained in our Annual Report

9

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. Historically, 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 VIE 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 VIE 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.    

3. Property Disposition

During April 2022, we transferred 383 Main Avenue, Norwalk CT, which was encumbered by a $30.0 million mortgage, back to the lender in a consensual foreclosure and recognized a non-cash gain of $27.2 million, which is included in Gain on disposition of property in our condensed consolidated statements of operations. In December 2021, we recorded a $7.7 million impairment charge on the property as we had concluded the cost basis of the asset exceeded its fair value given our reduced holding period and new intent to transfer property ownership to the lender.

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4. Deferred Costs, Acquired Lease Intangibles and Goodwill

    Deferred costs, net, consisted of the following as of June 30, 2022 and December 31, 2021 (amounts in thousands):  

	June 30, 2022		December 31, 2021
Leasing costs	$	217,415	$	211,189
Acquired in-place lease value and deferred leasing costs	158,874		166,491
Acquired above-market leases	29,419		33,289
	405,708		410,969
Less: accumulated amortization	(218,336)		(215,764)
Total deferred costs, net, excluding net deferred financing costs	$	187,372	$	195,205

    At June 30, 2022 and December 31, 2021, $6.1 million and $7.2 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 sheets.

    Amortization expense related to deferred leasing costs and acquired deferred leasing costs was $7.3 million and $6.1 million for the three months ended June 30, 2022 and 2021, respectively, and $14.3 million and $11.7 million for the six months ended June 30, 2022 and 2021, respectively. Amortization expense related to acquired lease intangibles was $4.1 million and $1.6 million for the three months ended June 30, 2022 and 2021, respectively, and $8.3 million and $3.3 million for the six months ended June 30, 2022 and 2021, respectively.

    Amortizing acquired intangible assets and liabilities consisted of the following as of June 30, 2022 and December 31, 2021 (amounts in thousands):

	June 30, 2022		December 31, 2021
Acquired below-market ground leases	$	396,916	$	396,916
Less: accumulated amortization	(63,928)		(60,012)
Acquired below-market ground leases, net	$	332,988	$	336,904

	June 30, 2022		December 31, 2021
Acquired below-market leases	$	(64,635)	$	(65,403)
Less: accumulated amortization	44,457		40,462
Acquired below-market leases, net	$	(20,178)	$	(24,941)

    Rental revenue related to the amortization of below-market leases, net of above-market leases, was $1.7 million and $0.7 million for the three months ended June 30, 2022 and 2021, respectively, and $3.5 million and $1.4 million for the six months ended June 30, 2022 and 2021, respectively.

As of June 30, 2022, 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 ended June 30, 2020, and each subsequent 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 second quarter 2022 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

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its carrying value by less than 15.0%.  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.

5. Debt

    Debt consisted of the following as of June 30, 2022 and December 31, 2021 (amounts in thousands):

	Principal Balance				As of June 30, 2022
	June 30, 2022		December 31, 2021		Stated Rate		Effective Rate(1)		Maturity Date(2)
Mortgage debt collateralized by:
Fixed rate mortgage debt
Metro Center	$	83,824	$	85,032	3.59	%	3.67	%	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	%	4.73	%	7/1/2027
1010 Third Avenue and 77 West 55th Street	36,255		36,670		4.01	%	4.21	%	1/5/2028
250 West 57th Street	180,000		180,000		2.83	%	3.21	%	12/1/2030
10 Bank Street	30,609		31,091		4.23	%	4.37	%	6/1/2032
383 Main Avenue(4)	—		30,000		—	%	—	%	—
1333 Broadway	160,000		160,000		4.21	%	4.29	%	2/5/2033
345 East 94th Street - Series A	43,600		43,600		70.0% of LIBOR plus 0.95%		3.56	%	11/1/2030
345 East 94th Street - Series B	8,173		8,650		LIBOR plus 2.24%		3.56	%	11/1/2030
561 10th Avenue - Series A	114,500		114,500		70.0% of LIBOR plus 1.07%		3.85	%	11/1/2033
561 10th Avenue - Series B	18,170		19,250		LIBOR plus 2.45%		3.85	%	11/1/2033
Total mortgage debt	935,131		968,793
Senior unsecured notes:(5)
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 (5)	215,000		215,000		LIBOR plus 1.20%		3.58	%	3/19/2025
Unsecured revolving credit facility (5)	—		—		LIBOR plus 1.30%		—		3/31/2025
Unsecured term loan facility (5)	175,000		175,000		LIBOR plus 1.50%		4.02	%	12/31/2026
Total principal	2,300,131		2,333,793
Deferred financing costs, net	(13,277)		(14,881)
Unamortized debt discount	(8,135)		(8,547)
Total	$	2,278,719	$	2,310,365

______________

(1)The effective rate is the yield as of June 30, 2022 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)Ownership of 383 Main Avenue, Norwalk CT was transferred to the lender during April 2022.

(5)At June 30, 2022, we were in compliance with all debt covenants.

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Principal Payments

    Aggregate required principal payments at June 30, 2022 are as follows (amounts in thousands):

Year	Amortization		Maturities		Total
2022	$	4,194	$	—	$	4,194
2023	9,632		—		9,632
2024	9,903		77,675		87,578
2025	7,979		315,000		322,979
2026	8,491		225,000		233,491
Thereafter	35,975		1,606,282		1,642,257
Total	$	76,174	$	2,223,957	$	2,300,131

Deferred Financing Costs

    Deferred financing costs, net, consisted of the following at June 30, 2022 and December 31, 2021 (amounts in thousands):

	June 30, 2022		December 31, 2021
Financing costs	$	44,065	$	44,637
Less: accumulated amortization	(24,727)		(22,525)
Total deferred financing costs, net	$	19,338	$	22,112

    Amortization expense related to deferred financing costs was $1.3 million and $1.1 million for the three months ended June 30, 2022 and 2021, respectively, and $2.7 million and $2.3 million for the six months ended June 30, 2022 and 2021, 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 governs an amended senior unsecured credit facility (the "Credit Facility") with Bank of America, N.A., as administrative agent and the other lenders party thereto. The Amended Credit Agreement amended the amended and restated credit agreement dated August 29, 2017 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 $850.0 million revolving credit facility that matures on March 31, 2025, and a $215.0 million term loan facility that matures on March 19, 2025. As of June 30, 2022, we had no borrowings under the revolving credit facility and $215.0 million under the term loan facility.

     On March 19, 2020, through our Operating Partnership, we entered into a senior unsecured term loan facility (the “Term Loan Facility”) with Wells Fargo Bank, National Association, as administrative agent, and the other lenders party thereto. The Term Loan Facility is in the original principal amount of $175.0 million and matures on December 31, 2026. 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 June 30, 2022, our borrowings amounted to $175.0 million under the Term Loan Facility.

    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. Both facilities also require 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 agreements governing both facilities also 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 a change of control. As of June 30, 2022, we were in compliance with these covenants.

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Senior Unsecured Notes

    The terms of the senior unsecured notes 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 agreements also 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, the occurrence of certain change of control transactions and loss of real estate investment trust qualification. As of June 30, 2022, we were in compliance with these covenants.

6. Accounts Payable and Accrued Expenses

    Accounts payable and accrued expenses consisted of the following as of June 30, 2022 and December 31, 2021 (amounts in thousands):

	June 30, 2022		December 31, 2021
Accrued capital expenditures	$	67,815	$	49,247
Accounts payable and accrued expenses	35,900		41,664
Interest rate swaps liability	5,612		25,308
Accrued interest payable	3,630		3,460
Due (from) to affiliated companies	880		1,131
Total accounts payable and accrued expenses	$	113,837	$	120,810

7. 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 its obligations.

In May 2022, we entered into forward interest rate swaps that aggregate $390.0 million to replace the $265.0 million swap which currently fixes the interest rate on a portion of our outstanding term loans balance and is due to expire in August 2022. The new swaps go into effect upon the expiration of the current swap and once effective, the interest rate on our term loans will be 100% fixed.

    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 June 30, 2022, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $6.1 million. If we had breached any of these provisions at June 30, 2022, we could have been required to settle our obligations under the agreements at their termination value of $6.1 million.

    As of June 30, 2022 and December 31, 2021, we had interest rate swaps and caps with an aggregate notional value of $841.3 million and $451.3 million, respectively. The notional value does not represent exposure to credit, interest rate or market risks. As of June 30, 2022, the fair value of our interest rate swaps amounted to $4.1 million, which is included in prepaid assets and other expenses and $(5.6) million which is included in accounts payable and accrued expenses on the condensed consolidated balance sheet. As of December 31, 2021, the fair value of our interest rate swaps amounted to $(25.3) million, which is included in accounts payable and accrued expenses on the condensed consolidated balance sheet. These interest rate swaps have been designated as cash flow hedges and hedge the variability in future cash flows associated with our existing variable-rate term loan facilities. Interest rate caps not designated as hedges are not speculative and are used to manage our exposure to interest rate movements, but do not meet the strict hedge accounting requirements.

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    As of June 30, 2022 and 2021, our cash flow hedges are deemed highly effective and a net unrealized gain (loss) of $12.8 million and $2.8 million for the three months ended June 30, 2022 and 2021, respectively, and a net unrealized gain (loss) of $25.9 million and $5.7 million for the six months ended June 30, 2022 and 2021, respectively, relating to both active and terminated hedges of interest rate risk, are reflected in the condensed consolidated statements of comprehensive income (loss). Amounts reported in accumulated other comprehensive loss related to derivatives will be reclassified to interest expense as interest payments are made on the debt. We estimate that $2.4 million net loss of the current balance held in accumulated other comprehensive 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 June 30, 2022 and December 31, 2021 (amounts in thousands):     

							June 30, 2022				December 31, 2021
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	$	—	$	(98)	$	—	$	(3,184)
Interest rate swap	36,820		70% of 1 Month LIBOR	2.5000%	December 1, 2021	November 1, 2030	—		(1,208)		—		(4,527)
Interest rate swap	103,790		70% of 1 Month LIBOR	2.5000%	December 1, 2021	November 1, 2033	—		(4,306)		—		(15,945)
Interest rate swap	10,710		70% of 1 Month LIBOR	1.7570%	December 1, 2021	November 1, 2033	236				—		(754)
Interest rate swap	19,008		1 Month LIBOR	2.2540%	December 1, 2021	November 1, 2030	492		—		—		(898)
Interest rate cap	6,780		70% of 1 Month LIBOR	4.5000%	December 1, 2021	October 1, 2024	11		—		5		—
Interest rate cap	9,188		1 Month LIBOR	5.5000%	December 1, 2021	October 1, 2024	26		—		8		—
Interest rate swap	175,000		1 Month SOFR	2.5620%	August 31, 2022	December 31, 2026	1,703		—		—		—
Interest rate swap	107,500		1 Month SOFR	2.6260%	August 19, 2022	March 19, 2025	828		—		—		—
Interest rate swap	107,500		1 Month SOFR	2.6280%	August 19, 2022	March 19, 2025	824		—		—		—
							$	4,120	$	(5,612)	$	13	$	(25,308)

    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 and six months ended June 30, 2022 and 2021 (amounts in thousands):    

	Three Months Ended				Six Months Ended
Effects of Cash Flow Hedges	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Amount of gain (loss) recognized in other comprehensive income (loss)	$	10,057	$	(95)	$	19,819	$	(36)
Amount of loss reclassified from accumulated other comprehensive loss into interest expense	(2,741)		(2,898)		(6,036)		(5,767)

    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 and six months ended June 30, 2022 and 2021 (amounts in thousands):

	Three Months Ended				Six Months Ended
Effects of Cash Flow Hedges	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Total interest expense presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded	$	(25,042)	$	(23,422)	$	(50,056)	$	(46,976)
Amount of loss reclassified from accumulated other comprehensive income into interest expense	(2,741)		(2,898)		(6,036)		(5,767)

Fair Valuation

    The estimated fair values at June 30, 2022 and December 31, 2021 were determined by management, using available market information and appropriate valuation methodologies. Considerable judgment is necessary to interpret market data and

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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 our derivatives were classified as Level 2 of the fair value hierarchy.

    The fair values of our mortgage notes payable, senior unsecured notes - Series A, B, C, D, E, F, G and H - unsecured term loan facilities and unsecured revolving credit facility 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 by us.

    The following tables summarize the carrying and estimated fair values of our financial instruments as of June 30, 2022 and December 31, 2021 (amounts in thousands):

	June 30, 2022
			Estimated Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Interest rate swaps included in prepaid expenses and other assets	$	4,082	$	4,082	$	—	$	4,082	$	—
Interest rate swap included in accounts payable and accrued expenses	5,612		5,612		—		5,612		$	—
Mortgage notes payable	916,657		844,706		—		—		844,706
Senior unsecured notes - Series A, B, C, D, E, F, G and H	973,555		906,567		—		—		906,567
Unsecured term loan facilities	388,507		390,000		—		—		390,000

    

	December 31, 2021
			Estimated Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Interest rate swap included in accounts payable and accrued expenses	$	25,308	$	25,308	$	—	$	25,308	$	—
Mortgage notes payable	948,769		960,933		—		—		960,933
Senior unsecured notes - Series A, B, C, D, E, F, G and H	973,373		994,389		—		—		994,389
Unsecured term loan facilities	388,223		390,000		—		—		390,000

    Disclosure about the fair value of financial instruments is based on pertinent information available to us as of June 30, 2022 and December 31, 2021. 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.

8. 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 June 30, 2022 and 2021 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 and six months ended June 30, 2022 and 2021 are as follows (amounts in thousands):

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	Three Months Ended				Six Months Ended
Rental revenue	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Fixed payments	$	134,794	$	124,432	$	268,195	$	250,204
Variable payments	14,545		16,365		28,658		30,824
Total rental revenue	$	149,339	$	140,797	$	296,853	$	281,028

As of June 30, 2022, 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 2039 (amounts in thousands):

Remainder of 2022	$	244,025
2023	495,765
2024	473,800
2025	437,398
2026	396,072
Thereafter	1,853,731
	$	3,900,791

The above future minimum lease payments exclude tenant recoveries and the net accretion of above and 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 $28.8 million and lease liabilities of $28.8 million in our consolidated balance sheets as of June 30, 2022. 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.

    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 Accounting Standards Update 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 June 30, 2022 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 June 30, 2022 was 47.9 years.

    As of June 30, 2022, 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 2022	$	759
2023	1,518
2024	1,518
2025	1,518
2026	1,518
Thereafter	63,744
Total undiscounted cash flows	70,575
Present value discount	(41,794)
Ground lease liabilities	$	28,781

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9. Commitments and Contingencies

Legal Proceedings

    Except as described below, as of June 30, 2022, 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 sought to vacate that portion of the award. On September 27, 2021, the court denied Respondents' motion to vacate and entered judgement in the aforementioned amount, inclusive of accumulated interest. Respondents have appealed that ruling. On May 10, 2022, Respondents moved to dismiss the appeal and judgment on the grounds that a recent decision of the United States Supreme Court held that the federal courts have no subject matter jurisdiction over the case. Claimants opposed the motion, which is pending. 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 June 30, 2022, we estimate that we will incur approximately $105.3 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 June 30, 2022, 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 June 30, 2022, 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,

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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 June 30, 2022, 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.

10. 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 capital events, and any increase in valuation from the time of one such event to the next 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 per unit distributions as OP units, which equal per share dividends (both regular and special) on our common stock. Market and performance-based LTIPs receive 10%

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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.

    As of June 30, 2022, there were 162,689,535 share of Class A common stock, 994,252 shares of Class B common stock and 111,420,579 OP Units outstanding, of which 163,683,787, or 59.5%, were owned by us and 111,420,579, or 40.5%, 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 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 from January 1, 2022 through December 31, 2023. 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 and will be subject to stock price, availability, trading volume, general market conditions, and applicable securities laws. 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 June 30, 2022:

Period	Total Number of Shares Purchased	Weighted Average Price Paid per Share		Maximum Approximate Dollar Value Available for Future Purchase (in thousands)
April 2022	2,308,026	$	8.95	$	467,350
May 2022	1,050,731	$	8.09	$	458,849
June 2022	3,252,202	$	7.16	$	435,560

Private Perpetual Preferred Units

    As of June 30, 2022, 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") outstanding. 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 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. Both series 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 $5.8 million and $11.8 million for the three and six months ended June 30, 2022, respectively, and $6.1 million for the three and six months ended June 30, 2021. Total distributions paid to OP unitholders were $3.9 million and $7.7 million for the three and six months ended June 30, 2022, respectively, and $3.4 million for the three and six months ended June 30, 2021. Total distributions paid to preferred unitholders were $1.1 million and $2.1 million for the three months and six ended June 30, 2022, respectively, and $1.1 million and $2.1 million for the three and six months ended June 30, 2021, 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 June 30, 2022, 5.9 million shares of common stock remain available for future issuance.

Annually, we make grants of LTIP units to our non-employee directors under the 2019 Plan. In 2022, each of our directors received 60% of their $200,000 annual base retainer in the form of equity vesting ratably over four years, and could elect to receive the remaining 40% of such base retainer in (i) cash at the face value of the award, (ii) immediately vesting equity at the face value of the award, or (iii) equity vesting ratably over three years at 120% of the face amount. Each director

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could elect to receive any equity portion of the base retainer in either (i) LTIP units or (ii) restricted shares of our Class A common stock. In accordance with each director's election, we granted a total of 142,358 LTIP units that are subject to time-based vesting with fair market values of $1.1 million. The LTIP units vest ratably over three or four years from the date of the grant, based on grantee election, subject generally to the director's continued service on our Board of Directors. We also granted 51,284 LTIP units that are subject to immediate vesting with fair market values of $0.3 million.

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 for awards granted in 2020 and after and age of 60 for awards granted before 2020 and (ii) the date on which the employee has first completed ten years of continuous service with us or our affiliates. Share-based compensation for market-based equity awards and performance-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. Additionally, for the performance-based equity awards, we assess, at each reporting period, whether it is probable that the performance conditions will be satisfied. We recognize expense respective to the number of awards we expect to vest at the conclusion of the measurement period. Changes in estimate are accounted for in the period of change through a cumulative catch-up adjustment.

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 an appropriate 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 or performance 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, the fair value of the awards are based on the market price of our stock at the grant date.

LTIP units and restricted stock issued during the six months ended June 30, 2022 were valued at $22.4 million. The weighted average per unit or share fair value was $7.21 for grants issued in 2022. The fair value per unit or share granted in 2022 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 2.0%, a risk-free interest rate from 1.4% to 2.0%, and an expected price volatility from 37.0% to 53.0%. No other stock options, dividend equivalents, or stock appreciation rights were issued or outstanding in 2022.

    The following is a summary of restricted stock and LTIP unit activity for the six months ended June 30, 2022:

	Restricted Stock	Time-based LTIPs	Market-based LTIPs	Performance-based LTIPs	Weighted Average Grant Fair Value
Unvested balance at December 31, 2021	214,408	2,499,592	5,039,134	—	$	7.02
Vested	(67,654)	(1,052,119)	—		9.95
Granted	232,448	1,514,434	780,155	578,943	7.21
Forfeited or unearned	(9,874)	—	(1,311,839)	—	7.20
Unvested balance at June 30, 2022	369,328	2,961,907	4,507,450	578,943	6.67

    The time-based LTIPs 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 market-based and performance-based awards, and accordingly, we recognized $0.6 million and $1.6 million for the three and six months ended June 30, 2022, respectively, and $0.4 million and $1.4 million for the three and six months ended June 30, 2021, respectively. Unrecognized compensation expense was $1.5 million at June 30, 2022, which will be recognized over a weighted average period of 3.6 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 $5.4 million and $8.9 million for the three and six months ended June 30, 2022, respectively, and $4.8 million and $8.6 million for the three and six months ended

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June 30, 2021, respectively. Unrecognized compensation expense was $35.1 million at June 30, 2022, which will be recognized over a weighted average period of 2.8 years.

Earnings Per Share

    Earnings per share for the three and six months ended June 30, 2022 and 2021 is computed as follows (amounts in thousands, except per share amounts):

	Three Months Ended				Six Months Ended
	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Numerator - Basic:
Net income	$	48,695	$	4,411	$	31,474	$	1,220
Private perpetual preferred unit distributions	(1,051)		(1,051)		(2,101)		(2,101)
Net (income) loss attributable to non-controlling interests	(18,065)		(1,285)		(11,083)		335
Earnings allocated to unvested shares	(64)		(9)		(71)		(9)
Net income (loss) attributable to common stockholders – basic	$	29,515	$	2,066	$	18,219	$	(555)
Numerator - Diluted:
Net income	$	48,695	$	4,411	$	31,474	$	1,220
Private perpetual preferred unit distributions	(1,051)		(1,051)		(2,101)		(2,101)
Net loss attributable to non-controlling interests in other partnerships	159		—		222		—
Earnings allocated to unvested shares	(64)		(9)		(71)		(9)
Net income (loss) attributable to common stockholders – diluted	$	47,739	$	3,351	$	29,524	$	(890)
Denominator:
Weighted average shares outstanding – basic	167,118		171,615		168,099		172,183
OP units	102,960		106,278		103,735		105,704
Effect of dilutive securities:
Stock-based compensation plans	7		543		3		—
Weighted average shares outstanding – diluted	270,085		278,436		271,837		277,887
Earnings per share:
Basic	$	0.18	$	0.01	$	0.11	$	0.00
Diluted	$	0.18	$	0.01	$	0.11	$	0.00

    There were 603 and 398 antidilutive shares and LTIP units for the three and six months ended June 30, 2022, respectively, and 1,051 and 955 antidilutive shares and LTIP units for the three and six months ended June 30, 2021, respectively.

11. Related Party Transactions

Supervisory Fee Revenue

    We earned supervisory fees from entities affiliated with Anthony E. Malkin, our Chairman, President and Chief Executive Officer, of $0.3 million for the three months ended June 30, 2022 and 2021, and $0.5 million for the six months ended June 30, 2022 and 2021. These fees are included within third-party management and other fees.

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Property Management Fee Revenue

    We earned property management fees from entities affiliated with Anthony E. Malkin of $0.1 million and $0.1 million for the three months ended June 30, 2022 and 2021, respectively, and $0.1 million for the six months ended June 30, 2022 and 2021. 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 June 30, 2022 and 2021, respectively, and $0.2 million for the six months ended June 30, 2022 and 2021.

12. 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 rents as if the sales or rents 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 six months ended June 30, 2022 and 2021 (amounts in thousands):

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	Three Months Ended June 30, 2022
	Real Estate		Observatory		Intersegment Elimination		Total
Revenues:
Rental revenue	$	149,339	$	—	$	—	$	149,339
Intercompany rental revenue	17,109		—		(17,109)		—
Observatory revenue	—		27,368		—		27,368
Lease termination fees	18,859		—		—		18,859
Third-party management and other fees	326		—		—		326
Other revenue and fees	2,130		—		—		2,130
Total revenues	187,763		27,368		(17,109)		198,022
Operating expenses:
Property operating expenses	37,433		—		—		37,433
Intercompany rent expense	—		17,109		(17,109)		—
Ground rent expense	2,332		—		—		2,332
General and administrative expenses	15,876		—		—		15,876
Observatory expenses	—		7,776		—		7,776
Real estate taxes	29,802		—		—		29,802
Depreciation and amortization	58,254		50		—		58,304
Total operating expenses	143,697		24,935		(17,109)		151,523
Total operating income	44,066		2,433		—		46,499
Other income (expense):
Interest income	426		5		—		431
Interest expense	(25,042)		—		—		(25,042)
Gain on disposition of property	27,170		—		—		27,170
Income before income taxes	46,620		2,438		—		49,058
Income tax expense	(38)		(325)		—		(363)
Net income	$	46,582	$	2,113	$	—	$	48,695
Segment assets	$	3,969,257	$	247,974	$	—	$	4,217,231
Expenditures for segment assets	$	13,115	$	—	$	—	$	13,115

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	Three Months Ended June 30, 2021
	Real Estate		Observatory		Intersegment Elimination		Total
Revenues:
Rental revenue	$	140,797	$	—	$	—	$	140,797
Intercompany rental revenue	6,029		—		(6,029)		—
Observatory revenue	—		8,359		—		8,359
Lease termination fees	3,339		—		—		3,339
Third-party management and other fees	327		—		—		327
Other revenue and fees	586		—		—		586
Total revenues	151,078		8,359		(6,029)		153,408
Operating expenses:
Property operating expenses	28,793		—		—		28,793
Intercompany rent expense	—		6,029		(6,029)		—
Ground rent expense	2,332		—		—		2,332
General and administrative expenses	14,089		—		—		14,089
Observatory expenses	—		5,268		—		5,268
Real estate taxes	31,354		—		—		31,354
Depreciation and amortization	45,066		22		—		45,088
Total operating expenses	121,634		11,319		(6,029)		126,924
Total operating income (loss)	29,444		(2,960)		—		26,484
Other income (expense):
Interest income	163		1		—		164
Interest expense	(23,422)		—		—		(23,422)
Income (loss) before income taxes	6,185		(2,959)		—		3,226
Income tax (expense) benefit	(135)		1,320		—		1,185
Net income (loss)	$	6,050	$	(1,639)	$	—	$	4,411
Segment assets	$	3,880,853	$	242,619	$	—	$	4,123,472
Expenditures for segment assets	$	19,975	$	—	$	—	$	19,975

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	Six Months Ended June 30, 2022
	Real Estate		Observatory		Intersegment Elimination		Total
Revenues:
Rental revenue	$	296,853	$	—	$	—	$	296,853
Intercompany rental revenue	27,729		—		(27,729)		—
Observatory revenue	—		40,609		—		40,609
Lease termination fees	20,032		—		—		20,032
Third-party management and other fees	636		—		—		636
Other revenue and fees	3,926		—		—		3,926
Total revenues	349,176		40,609		(27,729)		362,056
Operating expenses:
Property operating expenses	76,077		—		—		76,077
Intercompany rent expense	—		27,729		(27,729)		—
Ground rent expense	4,663		—		—		4,663
General and administrative expenses	29,562		—		—		29,562
Observatory expenses	—		13,991		—		13,991
Real estate taxes	59,806		—		—		59,806
Depreciation and amortization	125,325		85		—		125,410
Total operating expenses	295,433		41,805		(27,729)		309,509
Total operating income (loss)	53,743		(1,196)		—		52,547
Other income (expense):
Interest income	575		5		—		580
Interest expense	(50,056)		—		—		(50,056)
Gain on disposition of property	27,170		—		—		27,170
Income (loss) before income taxes	31,432		(1,191)		—		30,241
Income tax (expense) benefit	(182)		1,415		—		1,233
Net income	$	31,250	$	224	$	—	$	31,474
Expenditures for segment assets	$	51,999	$	291	$	—	$	52,290

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	Six Months Ended June 30, 2021
	Real Estate		Observatory		Intersegment Elimination		Total
Revenues:
Rental revenue	$	281,028	$	—	$	—	$	281,028
Intercompany rental revenue	10,961		—		(10,961)		—
Observatory revenue	—		10,962		—		10,962
Lease termination fees	4,628		—		—		4,628
Third-party management and other fees	603		—		—		603
Other revenue and fees	1,491		—		—		1,491
Total revenues	298,711		10,962		(10,961)		298,712
Operating expenses:
Property operating expenses	59,072		—		—		59,072
Intercompany rent expense	—		10,961		(10,961)		—
Ground rent expense	4,663		—		—		4,663
General and administrative expenses	27,942		—		—		27,942
Observatory expenses	—		9,856		—		9,856
Real estate taxes	62,801		—		—		62,801
Depreciation and amortization	89,485		60		—		89,545
Total operating expenses	243,963		20,877		(10,961)		253,879
Total operating income (loss)	54,748		(9,915)		—		44,833
Other income (expense):
Interest income	283		3		—		286
Interest expense	(46,976)		—		—		(46,976)
Loss on early extinguishment of debt	(214)		—		—		(214)
Income (loss) before income taxes	7,841		(9,912)		—		(2,071)
Income tax (expense) benefit	(418)		3,709		—		3,291
Net income (loss)	$	7,423	$	(6,203)	$	—	$	1,220
Expenditures for segment assets	$	43,307	$	4	$	—	$	43,311

    

13. 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, 2021.

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, market, political and social impact of, and uncertainty relating to, the COVID-19 pandemic; (ii) a failure of conditions or performance regarding any event or transaction described herein, (iii) resolution of legal proceedings involving the Company; (iv) reduced demand for office, multifamily or retail space, including as a result of the COVID-19 pandemic and/or hybrid work schedules which allow work from remote locations other than the employer's office premises; (v) changes in our business strategy; (vi) changes in technology and market competition that affect utilization of our office, retail, broadcast or other facilities; (vii) changes in domestic or international tourism, including due to health crises such as the COVID-19 pandemic, geopolitical events, including global hostilities, currency exchange rates, and/or competition from recently opened observatories in New York City, any or all of which may cause a decline in observatory visitors; (viii) defaults on, early terminations of, or non-renewal of, leases by tenants; (ix) increases or uncertainty in interest rates, including the phasing out of LIBOR, which may negatively affect the Company’s borrowing costs and the market valuation of real property assets generally; (x) declining real estate valuations and impairment charges; (xi) termination of our ground leases; (xii) 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; (xiii) decreased rental rates or increased vacancy rates; (xiv) our failure to execute any newly planned capital project successfully or on the anticipated timeline or at the anticipated costs; (xv) difficulties in identifying and completing acquisitions; (xvi) risks related to our development projects (including our Metro Tower development site); (xvii) impact of changes in governmental regulations, tax laws and rates and similar matters; (xviii) our failure to qualify as a REIT; (xix) environmental uncertainties and risks related to climate change, adverse weather conditions, rising sea levels and natural disasters; and (xx) accuracy of our methodologies and estimates regarding ESG metrics and goals, tenant willingness and ability to collaborate in reporting ESG metrics and meeting ESG goals, and the impact of governmental regulation on our ESG efforts; (xxi) economic cycles involving inflation and/or recession; (xxii) supply chain disruptions which may limit or delay our timely sourcing of supplies for the maintenance of our facilities and equipment. 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, and in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, 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 New York City focused real estate investment trust ("REIT") that owns and manages office, retail and multifamily assets in Manhattan and the greater New York metropolitan area. As the owner of the Empire State Building, the World’s Most Famous Building, we also own and operate our iconic, newly reimagined Observatory Experience.

Highlights for the three months ended June 30, 2022

•Incurred net income attributable to common stockholders of $29.6 million and achieved Core Funds From Operations ("Core FFO") of $79.2 million attributable to common stockholders and the operating partnership.

•Total commercial portfolio 87.8% leased, New York City office portfolio 88.3% leased.

•Signed a total of 320,225 rentable square feet of new, renewal, and expansion leases.

•Empire State Building observatory revenue was $27.4 million and observatory net operating income was $19.6 million for the second quarter of 2022.

•Repurchased $53.7 million of our common stock at a weighted average price of $7.90 per share in the second quarter of 2022 and through July 21, 2022. Since the stock repurchase program began on March 5, 2020 through July 21, 2022, approximately $256 million at a weighted average price of $8.48 per share has been repurchased.

Results of Operations

Overview

    The discussion below relates to our financial condition and results of operations for the three months ended June 30, 2022 and 2021, respectively.

Three Months Ended June 30, 2022 Compared to the Three Months Ended June 30, 2021

The following table summarizes our historical results of operations for the three months ended June 30, 2022 and 2021 (amounts in thousands):

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	Three Months Ended June 30,
	2022		2021		Change		%
Revenues:
Rental revenue	$	149,339	$	140,797	$	8,542	6.1	%
Observatory revenue	27,368		8,359		19,009		227.4	%
Lease termination fees	18,859		3,339		15,520		464.8	%
Third-party management and other fees	326		327		(1)		(0.3)	%
Other revenues and fees	2,130		586		1,544		263.5	%
Total revenues	198,022		153,408		44,614		29.1	%
Operating expenses:
Property operating expenses	37,433		28,793		(8,640)		(30.0)	%
Ground rent expenses	2,332		2,332		—		—	%
General and administrative expenses	15,876		14,089		(1,787)		(12.7)	%
Observatory expenses	7,776		5,268		(2,508)		(47.6)	%
Real estate taxes	29,802		31,354		1,552		4.9	%
Depreciation and amortization	58,304		45,088		(13,216)		(29.3)	%
Total operating expenses	151,523		126,924		(24,599)		(19.4)	%
Operating income	46,499		26,484		20,015		75.6	%
Other income (expense):
Interest income	431		164		267		162.8	%
Interest expense	(25,042)		(23,422)		(1,620)		(6.9)	%
Gain on disposition of property	27,170		—		27,170		100.0	%
Income before income taxes	49,058		3,226		45,832		(1,420.7)	%
Income tax (expense) benefit	(363)		1,185		(1,548)		130.6	%
Net income	48,695		4,411		44,284		(1,003.9)	%
Net (income) loss attributable to non-controlling interests:
Non-controlling interests in the Operating Partnership	(18,224)		(1,285)		(16,939)		1,318.2	%
Non-controlling interests in other partnerships	159		—		159		100.0	%
Private perpetual preferred unit distributions	(1,051)		(1,051)		—		—	%
Net income attributable to common stockholders	$	29,579	$	2,075	$	27,504	(1,325.5)	%

Rental Revenue

The increase in rental revenue reflects the inclusion of revenue from our recently acquired multifamily properties.

Observatory Revenue

Observatory revenues were higher driven by increased visitation.

Other Revenues and Fees

The increase in other revenues and fees was due to higher food and beverage sales, insurance claim income, parking income and bad debt recovery income.

Property Operating Expenses

The increase in property operating expenses reflects higher payroll, utilities, cleaning and other operating expenses, and the inclusion of operating expenses from our recently acquired multifamily properties.

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General and Administrative Expenses

The increase in general and administrative expenses reflects higher equity compensation and payroll costs, information technology costs and professional fees.

Observatory Expenses

The increase in observatory expenses was driven by increased operating hours, which increased variable costs such as labor, union, security, cleaning and maintenance costs.

Real Estate Taxes

Lower real estate taxes were attributable to the overall reduction in property tax assessment values.

Depreciation and Amortization

    The increase in depreciation and amortization reflects accelerated depreciation at one property due to an impairment charge taken in the fourth quarter of 2021 and additional depreciation from our recently acquired multifamily properties.

Interest Expense

    The increase reflects additional interest expense from our recently acquired multifamily properties, partially offset by the cancellation of debt from 383 Main Avenue, Norwalk CT.

Income Taxes

The decrease in income tax benefit was attributable to higher net operating income for the observatory segment.

Gain on disposition of property

Represents a gain on the transfer of 383 Main Avenue, Norwalk CT, which was encumbered by a $30.0 million mortgage, back to the lender in a consensual foreclosure.

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Six Months Ended June 30, 2022 Compared to the Six Months Ended June 30, 2021

The following table summarizes our historical results of operations for the six months ended June 30, 2022 and 2021 (dollars in thousands):

	Six Months Ended June 30,
	2022		2021		Change		%
Revenues:
Rental revenue	$	296,853	$	281,028	$	15,825	5.6	%
Observatory revenue	40,609		10,962		29,647		270.5	%
Lease termination fees	20,032		4,628		15,404		332.8	%
Third-party management and other fees	636		603		33		5.5	%
Other revenues and fees	3,926		1,491		2,435		163.3	%
Total revenues	362,056		298,712		63,344		21.2	%
Operating expenses:
Property operating expenses	76,077		59,072		(17,005)		(28.8)	%
Ground rent expenses	4,663		4,663		—		—	%
General and administrative expenses	29,562		27,942		(1,620)		(5.8)	%
Observatory expenses	13,991		9,856		(4,135)		(42.0)	%
Real estate taxes	59,806		62,801		2,995		4.8	%
Depreciation and amortization	125,410		89,545		(35,865)		(40.1)	%
Total operating expenses	309,509		253,879		(55,630)		(21.9)	%
Operating income	52,547		44,833		7,714		17.2	%
Other income (expense):
Interest income	580		286		294		102.8	%
Interest expense	(50,056)		(46,976)		(3,080)		(6.6)	%
Loss on early extinguishment of debt	—		(214)		214		100.0	%
Gain on disposition of property	27,170		—		27,170		100.0	%
Income (loss) before income taxes	30,241		(2,071)		32,312		1,560.2	%
Income tax benefit	1,233		3,291		(2,058)		(62.5)	%
Net income	31,474		1,220		30,254		(2,479.8)	%
Net (income) loss attributable to non-controlling interests:
Non-controlling interests in the Operating Partnership	(11,305)		335		11,640		3,474.6	%
Non-controlling interests in other partnerships	222		—		222		100.0	%
Private perpetual preferred unit distributions	(2,101)		(2,101)		—		—	%
Net income (loss) attributable to common stockholders	$	18,290	$	(546)	$	18,836	3,449.8	%

Rental Revenue

The increase in rental revenue reflects the inclusion of revenue from our recently acquired multifamily properties.

Observatory Revenue

Observatory revenues were higher driven by increased visitation.

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Other Revenues and Fees

The increase in other revenues and fees was due to higher food and beverage sales, insurance claim income, parking income and bad debt recovery income.

Property Operating Expenses

The increase in property operating expenses reflects higher payroll, utilities, repairs and maintenance costs, cleaning and other operating expenses, and the inclusion of operating expenses from our recently acquired multifamily properties.

General and Administrative Expenses

The increase in general and administrative expenses reflects higher equity compensation and payroll costs, information technology costs and professional fees.

Observatory Expenses

The increase in observatory expenses was driven by increased operating hours, which increased variable costs such as labor, union, security, cleaning and maintenance costs.

Real Estate Taxes

Lower real estate taxes were attributable to the overall reduction in property tax assessment values.

Depreciation and Amortization

    The increase in depreciation and amortization reflects accelerated depreciation at one property due to an impairment charge in the fourth quarter of 2021 and additional depreciation from our recently acquired multifamily properties.

Interest Expense

    The increase in interest expense reflects additional interest expense from our recently acquired multifamily properties, partially offset by the cancellation of debt from 383 Main Avenue, Norwalk CT.

Income Taxes

The decrease in income tax benefit was attributable to higher net operating income for the observatory segment.

Gain on disposition of property

Represents a gain on the transfer of 383 Main Avenue, Norwalk CT, which was encumbered by a $30.0 million mortgage, back to the lender in a consensual foreclosure.

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 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

33

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 June 30, 2022, we had $359.4 million available in cash and cash equivalents, and $850 million available under our unsecured revolving credit facility.

    As of June 30, 2022, we had approximately $2.3 billion of total consolidated indebtedness outstanding, with a weighted average interest rate of 3.9% and a weighted average maturity of 6.9 years. As of June 30, 2022, excluding principal amortization, we have no outstanding debt maturing until November 2024. Our consolidated net debt to total market capitalization was 49.0% as of June 30, 2022.

Unsecured Revolving Credit and Term Loan Facilities

    See "Financial Statements - Note 5. Debt" for a summary of our unsecured revolving credit and term loan facilities.

Mortgage Debt

As of June 30, 2022, mortgage notes payable amounted to $935.1 million. The first maturity is in 2024. See "Financial Statements - Note 5. Debt" for more information on mortgage debt.

Senior Unsecured Notes

The terms of the senior unsecured notes 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 agreements also 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, the occurrence of certain change of control transactions and loss of real estate investment trust qualification. As of June 30, 2022, we were in compliance with the covenants under the outstanding senior unsecured notes.

Financial Covenants

As of June 30, 2022, we were in compliance with the following financial covenants:

Financial covenant	Required	June 30, 2022		In Compliance
Maximum total leverage	< 60%	31.6	%	Yes
Maximum secured leverage	< 40%	12.7	%	Yes
Minimum fixed charge coverage	> 1.50x	3.4x		Yes
Minimum unencumbered interest coverage	> 1.75x	6.6x		Yes
Maximum unsecured leverage	< 60%	23.2	%	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

34

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).

Office Properties(1)

	Six Months Ended June 30,
Total New Leases, Expansions, and Renewals	2022		2021
Number of leases signed(2)	76		57
Total square feet	634,582		350,196
Leasing commission costs per square foot(3)	$	22.14	$	18.27
Tenant improvement costs per square foot(3)	62.15		58.62
Total leasing commissions and tenant improvement costs per square foot(3)	$	84.29	$	76.89

Retail Properties(4)

	Six Months Ended June 30,
Total New Leases, Expansions, and Renewals	2022		2021
Number of leases signed(2)	5		4
Total square feet	4,289		12,459
Leasing commission costs per square foot(3)	$	16.64	$	46.03
Tenant improvement costs per square foot(3)	—		32.49
Total leasing commissions and tenant improvement costs per square foot(3)	$	16.64	$	78.52

_______________

(1)Excludes an aggregate of 496,311 and 504,284 rentable square feet of retail space in our Manhattan office properties in 2022 and 2021, 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 496,311 and 504,284 rentable square feet of retail space in our Manhattan office properties in 2022 and 2021, respectively. Excludes the Empire State Building broadcasting licenses and observatory operations.

	Six Months Ended June 30,
	2022		2021
Total Portfolio
Capital expenditures (1)	$	19,697	$	9,331

_______________

(1)Excludes tenant improvements and leasing commission costs.

As of June 30, 2022, we expect to incur additional costs relating to obligations under existing lease agreements of approximately $105.3 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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Off-Balance Sheet Arrangements

As of June 30, 2022, we did not have any off-balance sheet arrangements.

Distribution Policy

We intend to distribute our net taxable income to our security holders in a manner intended to satisfy REIT distribution requirements and to avoid U.S. federal income tax liability on our income.

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 REIT distribution requirements.

Distribution to Equity Holders

Distributions and dividends amounting to $21.6 million and $11.6 million have been made to equity holders for the six months ended June 30, 2022 and 2021, respectively.

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, 2023. 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. See "Financial Statements - Note 10. Equity" for a summary of our purchases of equity securities in each of the three months ended June 30, 2022.

Cash Flows

Comparison of Six Months Ended June 30, 2022 to the Six Months Ended June 30, 2021

Net cash. Cash and cash equivalents and restricted cash were $412.8 million and $578.6 million, respectively, as of June 30, 2022 and 2021. The decrease was primarily due to the acquisition of real estate property at the end of 2021 and higher spending for capital expenditures, higher repurchases of common shares and higher dividends paid in 2022.

Operating activities. Net cash provided by operating activities was $83.7 million, equal to prior year.

Investing activities. Net cash used in investing activities increased by $8.2 million to $56.6 million due to higher capital expenditures.

Financing activities. Net cash used in financing activities increased by $64.2 million to $88.9 million primarily due to higher repurchases of common shares and higher dividends and distributions.

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

36

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 to investors because the resulting measure captures the actual revenue, generated and actual expenses incurred in operating our properties as well as trends in occupancy rates, rental rates and operating costs.

    However, the usefulness of NOI is limited because it excludes general and administrative costs, interest expense, depreciation and amortization expense and gains or losses from the sale of properties, and other gains and losses as stipulated by GAAP, the level of capital expenditures and leasing costs necessary to maintain the operating performance of our properties, all of which are significant economic costs. NOI may fail to capture significant trends in these components of net income which further limits its usefulness.

    NOI is a measure of the operating performance of our properties but does not measure our performance as a whole. NOI is therefore not a substitute for net income as computed in accordance with GAAP. This measure should be analyzed in conjunction with net income computed in accordance with GAAP 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 June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(unaudited)				(unaudited)
Net income	$	48,695	$	4,411	$	31,474	$	1,220
Add:
General and administrative expenses	15,876		14,089		29,562		27,942
Depreciation and amortization	58,304		45,088		125,410		89,545
Interest expense	25,042		23,422		50,056		46,976
Loss on early extinguishment of debt	—		—		—		214
Income tax expense (benefit)	363		(1,185)		(1,233)		(3,291)
Less:
Gain on disposition of property	(27,170)		—		(27,170)		—
Third-party management and other fees	(326)		(327)		(636)		(603)
Interest income	(431)		(164)		(580)		(286)
Net operating income	$	120,353	$	85,334	$	206,883	$	161,717
Other Net Operating Income Data
Straight-line rental revenue	$	8,597	$	3,763	$	11,192	$	10,110
Net increase in rental revenue from the amortization of above-and below-market lease assets and liabilities	$	1,675	$	717	$	3,459	$	1,371
Amortization of acquired below-market ground leases	$	1,958	$	1,958	$	3,916	$	3,916

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

37

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

Modified Funds From Operations ("Modified FFO")

    Modified FFO adds back an adjustment for any above or below-market ground lease amortization to traditionally defined FFO. We believe 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 believe it is 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 adds back to Modified FFO the following items: IPO litigation expense, severance expenses and loss on early extinguishment of debt. The company believes Core FFO is an important supplemental measure of its operating performance because 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):

38

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(unaudited)				(unaudited)
Net income	$	48,695	$	4,411	$	31,474	$	1,220
Noncontrolling interests in other partnerships	159		—		222		—
Private perpetual preferred unit distributions	(1,051)		(1,051)		(2,101)		(2,101)
Real estate depreciation and amortization	56,571		43,480		121,985		86,584
Gain on disposition of property	(27,170)		—		(27,170)		—
FFO attributable to common stockholders and the Operating Partnership	77,204		46,840		124,410		85,703
Amortization of below-market ground leases	1,958		1,958		3,916		3,916
Modified FFO attributable to common stockholders and the Operating Partnership	79,162		48,798		128,326		89,619
Loss on early extinguishment of debt	—		—		—		214
Core FFO attributable to common stockholders and the Operating Partnership	$	79,162	$	48,798	$	128,326	$	89,833
Weighted average shares and Operating Partnership Units
Basic	270,078		277,893		271,834		277,887
Diluted	270,085		278,436		271,837		277,887

Factors That May Influence Future Results of Operations

Leasing

    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 June 30, 2022, there were approximately 1.2 million rentable square feet of space in our portfolio available to lease (excluding leases signed but not yet commenced) representing 12.2% of the net rentable square footage of the properties in our portfolio. In addition, leases representing 3.4% and 6.2% of net rentable square footage of the properties in our portfolio will expire in 2022 and in 2023, respectively. These leases are expected to represent approximately 4.0% and 7.2%, 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 rental revenues. 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 obtain better quality tenants, whom have higher likelihood for growth within the portfolio, following the redevelopment and repositioning of our properties.

39

Observatory Operations

    For the three months ended June 30, 2022, the observatory hosted 573,000 visitors, compared to 162,000 visitors for the same period in 2021. 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 revenue for the three months ended June 30, 2022 was $27.4 million, compared to $8.4 million for the three months ended June 30, 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.

Critical Accounting Estimates

    Refer to our Annual Report on Form 10-K for the year ended December 31, 2021 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, 2021.

40

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. We are exposed to interest rate changes primarily on our unsecured revolving credit facility and debt refinancings. In order to mitigate our interest rate risk, we may borrow at fixed rates or may enter into derivative financial instruments such as interest rate swaps or caps on floating rate financial instruments. We are not subject to foreign currency risk and we do not enter into derivative or interest rate transactions for speculative purposes.

    As of June 30, 2022, our floating rate debt of $125.0 million represented 5.4% of our total debt. We have interest rate LIBOR swap and cap agreements with an aggregate notional value of $841.3 million and which mature between August 24, 2022 and November 1, 2033. These "variable to fixed" interest rate swaps have been designated as cash flow hedges and are deemed highly effective with fair values of $4.1 million and $(5.6) million which is included in prepaid assets and other expenses and in accounts payable and accrued expenses, respectively, on the condensed consolidated balance sheet as of June 30, 2022. Given the phasing out of LIBOR, we have entered into SOFR swap agreements to begin the replacement of our LIBOR swap agreements. We will continue to work with our lenders and counterparties to replace or modify, as appropriate, the interest rate provisions in our other LIBOR swap and cap agreements.

Based on our floating rate debt balances, interest expense would have increased by approximately $0.6 million for the three months ended June 30, 2022, if short-term interest rates had been 1% higher. As of June 30, 2022, the weighted average interest rate on the $2.2 billion of fixed-rate indebtedness outstanding was 3.9% per annum, with maturities at various dates through March 17, 2035.

As of June 30, 2022, the fair value of our outstanding debt was approximately $2.1 billion, which was approximately $137.4 million less than the 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.

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 June 30, 2022, 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

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    See Note 9 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, 2021.

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 during the period from January 1, 2022 through December 31, 2023. This replaces an earlier $500.0 million repurchase authorization that ran from January 1, 2021 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 and will be subject to stock price, availability, trading volume, general market conditions, and applicable securities laws. 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 repurchases of equity securities in each of the months in the three month period ended June 30, 2022 under the repurchase program described above:

Period	Total Number of Shares Purchased	Weighted Average Price Paid per Share		Maximum Approximate Dollar Value Available for Future Purchase (in thousands)
April 2022	2,308,026	$	8.95	$	467,350
May 2022	1,050,731	$	8.09	$	458,849
June 2022	3,252,202	$	7.16	$	435,560

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

    None.

ITEM 4. MINE SAFETY DISCLOSURES

    Not Applicable.

ITEM 5. OTHER INFORMATION

    None.

42

ITEM 6. EXHIBITS

Exhibit No.	Description
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
104	Cover Page Interactive Data File (contained in Exhibit 101)
Notes:
* Filed herewith.

43

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: August 4, 2022                            By:/s/ Christina Chiu

                                    Executive Vice President and

                                    Chief Financial Officer

                                    (Principal Financial Officer)

Date: August 4, 2022                         By:/s/ Stephen V. Horn

Senior Vice President, Chief Accounting

Officer

(Principal Accounting Officer)

44

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: August 4, 2022 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: August 4, 2022 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 June 30, 2022 (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: August 4, 2022 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 June 30, 2022 (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: August 4, 2022 By: /s/ Christina Chiu
Christina Chiu Executive Vice President and Chief Financial Officer

XML

Cover - shares	6 Months Ended
	Jun. 30, 2022	Jul. 29, 2022
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
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	2022
Document Fiscal Period Focus	Q2
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		162,620,718
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		994,175
No Trading Symbol Flag	true

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Commercial real estate properties, at cost:
Land	$ 334,598	$ 336,278
Development costs	8,162	8,131
Building and improvements	3,193,137	3,156,508
Commercial real estate properties, at cost	3,535,897	3,500,917
Less: accumulated depreciation	(1,137,231)	(1,072,938)
Commercial real estate properties, net	2,398,666	2,427,979
Cash and cash equivalents	359,424	423,695
Restricted cash	53,335	50,943
Tenant and other receivables	43,672	18,647
Deferred rent receivables	233,194	224,922
Prepaid expenses and other assets	82,256	76,549
Deferred costs, net	193,436	202,437
Acquired below-market ground leases, net	332,988	336,904
Right of use assets	28,781	28,892
Goodwill	491,479	491,479
Total assets	4,217,231	4,282,447
Liabilities:
Mortgage notes payable, net	916,657	948,769
Senior unsecured notes, net	973,555	973,373
Unsecured term loan facilities, net	388,507	388,223
Unsecured revolving credit facility	0	0
Accounts payable and accrued expenses	113,837	120,810
Acquired below-market leases, net	20,178	24,941
Ground lease liabilities	28,781	28,892
Deferred revenue and other liabilities	80,008	84,358
Tenants’ security deposits	29,615	28,749
Total liabilities	2,551,138	2,598,115
Commitments and contingencies
Empire State Realty Trust, Inc. stockholders' equity:
Preferred stock, $0.01 par value, 50,000 shares authorized, none issued or outstanding	0	0
Additional paid-in capital	1,076,854	1,150,884
Accumulated other comprehensive loss	(5,827)	(20,848)
Retained deficit	(114,860)	(133,610)
Total Empire State Realty Trust, Inc. stockholders' equity	957,803	998,128
Non-controlling interests in the Operating Partnership	663,469	643,012
Non-controlling interests in other partnerships	14,881	13,252
Private perpetual preferred units:
Total equity	1,666,093	1,684,332
Total liabilities and equity	4,217,231	4,282,447
Class A Common Stock
Empire State Realty Trust, Inc. stockholders' equity:
Common stock	1,626	1,692
Class B Common Stock
Empire State Realty Trust, Inc. stockholders' equity:
Common stock	10	10
Private Perpetual Preferred Units, Series 2019
Private perpetual preferred units:
Private perpetual preferred units	21,936	21,936
Private Perpetual Preferred Units, Series 2014
Private perpetual preferred units:
Private perpetual preferred units	$ 8,004	$ 8,004

XML

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2022	Dec. 31, 2021
Equity:
Preferred stock, par value (in USD per share)	$ 0.01	$ 0.01
Preferred stock authorized (in shares)	50,000,000	50,000,000
Preferred stock issued (in shares)	0	0
Preferred stock outstanding (in shares)	0	0
Class A Common Stock
Equity:
Common stock, par value (in USD per share)	$ 0.01	$ 0.01
Common stock authorized (in shares)	400,000,000	400,000,000
Common stock issued (in shares)	162,690,000	169,221,000
Common stock outstanding (in shares)	162,690,000	169,221,000
Class B Common Stock
Equity:
Common stock, par value (in USD per share)	$ 0.01	$ 0.01
Common stock authorized (in shares)	50,000,000	50,000,000
Common stock issued (in shares)	994,000	996,000
Common stock outstanding (in shares)	994,252	996,000
Private Perpetual Preferred Units, Series 2019
Equity:
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	4,664,000
Private perpetual preferred units outstanding (in shares)	4,664,000	4,664,000
Private Perpetual Preferred Units, Series 2014
Equity:
Private perpetual preferred units, per unit liquidation preference (in USD per share)	$ 16.62	$ 16.62
Private perpetual preferred units issued (in shares)	1,560,000	1,560,000
Private perpetual preferred units outstanding (in shares)	1,560,000	1,560,000

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Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenues:
Rental revenue	$ 149,339	$ 140,797	$ 296,853	$ 281,028
Observatory revenue	27,368	8,359	40,609	10,962
Lease termination fees	18,859	3,339	20,032	4,628
Third-party management and other fees	326	327	636	603
Other revenue and fees	2,130	586	3,926	1,491
Total revenues	198,022	153,408	362,056	298,712
Operating expenses:
Property operating expenses	37,433	28,793	76,077	59,072
Ground rent expenses	2,332	2,332	4,663	4,663
General and administrative expenses	15,876	14,089	29,562	27,942
Observatory expenses	7,776	5,268	13,991	9,856
Real estate taxes	29,802	31,354	59,806	62,801
Depreciation and amortization	58,304	45,088	125,410	89,545
Total operating expenses	151,523	126,924	309,509	253,879
Total operating income (loss)	46,499	26,484	52,547	44,833
Other income (expense):
Interest income	431	164	580	286
Interest expense	(25,042)	(23,422)	(50,056)	(46,976)
Loss on early extinguishment of debt	0	0	0	(214)
Gain on disposition of property	27,170	0	27,170	0
Income before income taxes	49,058	3,226	30,241	(2,071)
Income tax (expense) benefit	(363)	1,185	1,233	3,291
Net income	48,695	4,411	31,474	1,220
Net (income) loss attributable to non-controlling interests:
Non-controlling interests in the Operating Partnership	(18,224)	(1,285)	(11,305)	335
Non-controlling interests in other partnerships	159	0	222	0
Private perpetual preferred unit distributions	(1,051)	(1,051)	(2,101)	(2,101)
Net income (loss) attributable to common stockholders	$ 29,579	$ 2,075	$ 18,290	$ (546)
Total weighted average shares:
Basic (in shares)	167,118	171,615	168,099	172,183
Diluted (in shares)	270,085	278,436	271,837	277,887
Earnings per share attributable to common stockholders:
Basic (in USD per share)	$ 0.18	$ 0.01	$ 0.11	$ (0.00)
Diluted (in USD per share)	0.18	0.01	0.11	(0.00)
Dividends per share (in USD per share)	$ 0.035	$ 0.035	$ 0.070	$ 0.035

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Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 48,695	$ 4,411	$ 31,474	$ 1,220
Other comprehensive income:
Unrealized gain (loss) on valuation of interest rate swap agreements	10,057	(95)	19,819	(36)
Less: amount reclassified into interest expense	2,741	2,898	6,036	5,767
Other comprehensive income	12,798	2,803	25,855	5,731
Comprehensive income	61,493	7,214	57,329	6,951
Net income attributable to non-controlling interests and private perpetual preferred unitholders	(19,116)	(2,336)	(13,184)	(1,766)
Other comprehensive income attributable to non-controlling interests	(5,920)	(1,064)	(10,882)	(2,178)
Comprehensive income attributable to common stockholders	$ 36,457	$ 3,814	$ 33,263	$ 3,007

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Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Class A Common Stock	Class B Common Stock	Total Stockholders' Equity	Common Stock Class A Common Stock	Common Stock Class B Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings (Deficit)	Non-controlling Interests	Private Perpetual Preferred Units
Beginning balance (in shares) at Dec. 31, 2020					170,555,000	1,010,000
Beginning balance at Dec. 31, 2020	$ 1,731,307			$ 1,055,249	$ 1,705	$ 10	$ 1,147,527	$ (28,320)	$ (65,673)	$ 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)					2,149,000	(9,000)
Conversion of operating partnership units and Class B shares to Class A shares	0			6,835	$ 21		6,841	(27)		(6,835)
Repurchases of common shares (in shares)					(383,000)
Repurchases of common shares	(3,533)			(3,533)	$ (4)		(2,551)		(978)
Equity compensation:
LTIP units	9,874									9,874
Restricted stock, net of forfeitures (in shares)					78,000
Restricted stock, net of forfeitures	164			164	$ 2		162
Dividends and distributions	(11,555)			(6,063)					(6,063)	(3,391)	(2,101)
Net income	1,220			(546)					(546)	(335)	2,101
Other comprehensive income	5,731			3,553				3,553		2,178
Ending balance (in shares) at Jun. 30, 2021					172,399,000	1,001,000
Ending balance at Jun. 30, 2021	1,733,208			1,055,659	$ 1,724	$ 10	1,151,979	(24,794)	(73,260)	647,609	29,940
Beginning balance (in shares) at Mar. 31, 2021					171,327,000	1,005,000
Beginning balance at Mar. 31, 2021	1,731,195			1,053,495	$ 1,713	$ 10	1,147,588	(26,544)	(69,272)	647,760	29,940
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Conversion of operating partnership units and Class B shares to Class A shares (in shares)					1,078,000	(4,000)
Conversion of operating partnership units and Class B shares to Class A shares	0			4,173	$ 10		4,152	11		(4,173)
Repurchases of common shares (in shares)					0
Repurchases of common shares	0				$ 0		0		0
Equity compensation:
LTIP units	5,064									5,064
Restricted stock, net of forfeitures (in shares)					(6,000)
Restricted stock, net of forfeitures	240			240	$ 1		239
Dividends and distributions	(10,505)			(6,063)					(6,063)	(3,391)	(1,051)
Net income	4,411			2,075					2,075	1,285	1,051
Other comprehensive income	2,803			1,739				1,739		1,064
Ending balance (in shares) at Jun. 30, 2021					172,399,000	1,001,000
Ending balance at Jun. 30, 2021	1,733,208			1,055,659	$ 1,724	$ 10	1,151,979	(24,794)	(73,260)	647,609	29,940
Beginning balance (in shares) at Dec. 31, 2021		169,221,000	996,000		169,221,000	996,000
Beginning balance at Dec. 31, 2021	1,684,332			998,128	$ 1,692	$ 10	1,150,884	(20,848)	(133,610)	656,264	29,940
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Conversion of operating partnership units and Class B shares to Class A shares (in shares)					1,140,000	(2,000)
Conversion of operating partnership units and Class B shares to Class A shares	0			2,345	$ 11		2,286	48		(2,345)
Repurchases of common shares (in shares)					(7,866,000)
Repurchases of common shares	(64,440)			(64,440)	$ (79)		(76,571)		12,210
Contributions from consolidated joint ventures	224									224
Equity compensation:
LTIP units	9,968									9,968
Restricted stock, net of forfeitures (in shares)					195,000
Restricted stock, net of forfeitures	257			257	$ 2		255
Dividends and distributions	(21,577)			(11,750)					(11,750)	(7,726)	(2,101)
Net income	31,474			18,290					18,290	11,083	2,101
Other comprehensive income	25,855			14,973				14,973		10,882
Ending balance (in shares) at Jun. 30, 2022		162,690,000	994,252		162,690,000	994,000
Ending balance at Jun. 30, 2022	1,666,093			957,803	$ 1,626	$ 10	1,076,854	(5,827)	(114,860)	678,350	29,940
Beginning balance (in shares) at Mar. 31, 2022					168,731,000	995,000
Beginning balance at Mar. 31, 2022	1,662,032			978,421	$ 1,687	$ 10	1,119,201	(12,730)	(129,747)	653,671	29,940
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Conversion of operating partnership units and Class B shares to Class A shares (in shares)					566,000	(1,000)
Conversion of operating partnership units and Class B shares to Class A shares	0			848	$ 5		818	25		(848)
Repurchases of common shares (in shares)					(6,611,000)
Repurchases of common shares	(52,439)			(52,439)	$ (67)		(43,482)		(8,890)
Equity compensation:
LTIP units	5,447									5,447
Restricted stock, net of forfeitures (in shares)					4,000
Restricted stock, net of forfeitures	318			318	$ 1		317
Dividends and distributions	(10,758)			(5,802)					(5,802)	(3,905)	(1,051)
Net income	48,695			29,579					29,579	18,065	1,051
Other comprehensive income	12,798			6,878				6,878		5,920
Ending balance (in shares) at Jun. 30, 2022		162,690,000	994,252		162,690,000	994,000
Ending balance at Jun. 30, 2022	$ 1,666,093			$ 957,803	$ 1,626	$ 10	$ 1,076,854	$ (5,827)	$ (114,860)	$ 678,350	$ 29,940

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash Flows From Operating Activities
Net income	$ 31,474	$ 1,220
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	125,410	89,545
Gain on disposition of property	(27,170)	0
Amortization of non-cash items within interest expense	5,169	5,398
Amortization of acquired above- and below-market leases, net	(3,459)	(1,371)
Amortization of acquired below-market ground leases	3,916	3,916
Straight-lining of rental revenue	(11,192)	(10,110)
Equity based compensation	10,225	10,038
Loss on early extinguishment of debt	0	214
Increase (decrease) in cash flows due to changes in operating assets and liabilities:
Security deposits	866	(4,523)
Tenant and other receivables	(24,831)	2,303
Deferred leasing costs	(21,826)	(8,372)
Prepaid expenses and other assets	(1,242)	5,783
Accounts payable and accrued expenses	(2,235)	(5,232)
Deferred revenue and other liabilities	(1,427)	(5,080)
Net cash provided by operating activities	83,678	83,729
Cash Flows From Investing Activities
Development costs	(31)	(98)
Additions to building and improvements	(56,614)	(48,347)
Net cash used in investing activities	(56,645)	(48,445)
Cash Flows From Financing Activities
Repayment of mortgage notes payable	(3,119)	(2,026)
Deferred financing costs	0	(7,539)
Contributions from consolidated joint ventures	224	0
Repurchases of common shares	(64,440)	(3,533)
Private perpetual preferred unit distributions	(2,101)	(2,101)
Dividends paid to common stockholders	(11,750)	(6,063)
Distributions paid to non-controlling interests in the operating partnership	(7,726)	(3,391)
Net cash used in financing activities	(88,912)	(24,653)
Net increase in cash and cash equivalents and restricted cash	(61,879)	10,631
Cash and cash equivalents and restricted cash—beginning of period	474,638	567,939
Cash and cash equivalents and restricted cash—end of period	412,759	578,570
Reconciliation of Cash and Cash Equivalents and Restricted Cash:
Cash and cash equivalents	359,424	540,604
Restricted cash	53,335	37,966
Cash and cash equivalents and restricted cash	412,759	578,570
Supplemental disclosures of cash flow information:
Cash paid for interest	40,199	38,639
Cash paid for income taxes	268	299
Non-cash investing and financing activities:
Building and improvements included in accounts payable and accrued expenses	67,815	52,891
Write-off of fully depreciated assets	38,518	8,729
Derivative instruments at fair values included in prepaid expenses and other assets	4,082	0
Derivative instruments at fair values included in accounts payable and accrued expenses	19,695	6,176
Conversion of operating partnership units and Class B shares to Class A shares	2,345	6,835
Disposal of land in connection with foreclosure	1,680	0
Extinguishment of debt in connection with property disposition	$ 30,000

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Description of Business and Organization

6 Months Ended

Jun. 30, 2022

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 New York City focused real estate investment trust ("REIT") that owns and manages a well-positioned property portfolio of office, retail and multifamily assets in Manhattan and the greater New York metropolitan area. As the owner of the Empire State Building, the World’s Most Famous Building, we also own and operate our iconic, newly reimagined Observatory Experience.

    As of June 30, 2022, our total portfolio contained 9.9 million rentable square feet of office, retail and multifamily space. We owned 13 office properties (including three long-term ground leasehold interests) encompassing approximately 9.2 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 four office properties are located in Fairfield County, Connecticut and Westchester County, New York, encompassing in the aggregate approximately 1.6 million rentable square feet. The majority of square footage for these four 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 June 30, 2022, 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. Additionally, at June 30, 2022, our portfolio included two multifamily properties totaling 625 units.

     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 June 30, 2022, we owned approximately 59.5% 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

6 Months Ended

Jun. 30, 2022

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, 2021 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, 2021 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. Historically, 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 VIE 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 VIE 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.

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Property Disposition	6 Months Ended
	Jun. 30, 2022
Discontinued Operations and Disposal Groups [Abstract]
Property Disposition	Property DispositionDuring April 2022, we transferred 383 Main Avenue, Norwalk CT, which was encumbered by a $30.0 million mortgage, back to the lender in a consensual foreclosure and recognized a non-cash gain of $27.2 million, which is included in Gain on disposition of property in our condensed consolidated statements of operations. In December 2021, we recorded a $7.7 million impairment charge on the property as we had concluded the cost basis of the asset exceeded its fair value given our reduced holding period and new intent to transfer property ownership to the lender.

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Deferred Costs, Acquired Lease Intangibles and Goodwill

6 Months Ended

Jun. 30, 2022

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 June 30, 2022 and December 31, 2021 (amounts in thousands):  

	June 30, 2022		December 31, 2021
Leasing costs	$	217,415	$	211,189
Acquired in-place lease value and deferred leasing costs	158,874		166,491
Acquired above-market leases	29,419		33,289
	405,708		410,969
Less: accumulated amortization	(218,336)		(215,764)
Total deferred costs, net, excluding net deferred financing costs	$	187,372	$	195,205

    At June 30, 2022 and December 31, 2021, $6.1 million and $7.2 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 sheets.

    Amortization expense related to deferred leasing costs and acquired deferred leasing costs was $7.3 million and $6.1 million for the three months ended June 30, 2022 and 2021, respectively, and $14.3 million and $11.7 million for the six months ended June 30, 2022 and 2021, respectively. Amortization expense related to acquired lease intangibles was $4.1 million and $1.6 million for the three months ended June 30, 2022 and 2021, respectively, and $8.3 million and $3.3 million for the six months ended June 30, 2022 and 2021, respectively.

    Amortizing acquired intangible assets and liabilities consisted of the following as of June 30, 2022 and December 31, 2021 (amounts in thousands):

	June 30, 2022		December 31, 2021
Acquired below-market ground leases	$	396,916	$	396,916
Less: accumulated amortization	(63,928)		(60,012)
Acquired below-market ground leases, net	$	332,988	$	336,904

	June 30, 2022		December 31, 2021
Acquired below-market leases	$	(64,635)	$	(65,403)
Less: accumulated amortization	44,457		40,462
Acquired below-market leases, net	$	(20,178)	$	(24,941)

    Rental revenue related to the amortization of below-market leases, net of above-market leases, was $1.7 million and $0.7 million for the three months ended June 30, 2022 and 2021, respectively, and $3.5 million and $1.4 million for the six months ended June 30, 2022 and 2021, respectively.

As of June 30, 2022, 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 ended June 30, 2020, and each subsequent 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 second quarter 2022 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 15.0%.  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

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Debt

Debt

    Debt consisted of the following as of June 30, 2022 and December 31, 2021 (amounts in thousands):

	Principal Balance				As of June 30, 2022
	June 30, 2022		December 31, 2021		Stated Rate		Effective Rate(1)		Maturity Date(2)
Mortgage debt collateralized by:
Fixed rate mortgage debt
Metro Center	$	83,824	$	85,032	3.59	%	3.67	%	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	%	4.73	%	7/1/2027
1010 Third Avenue and 77 West 55th Street	36,255		36,670		4.01	%	4.21	%	1/5/2028
250 West 57th Street	180,000		180,000		2.83	%	3.21	%	12/1/2030
10 Bank Street	30,609		31,091		4.23	%	4.37	%	6/1/2032
383 Main Avenue(4)	—		30,000		—	%	—	%	—
1333 Broadway	160,000		160,000		4.21	%	4.29	%	2/5/2033
345 East 94th Street - Series A	43,600		43,600		70.0% of LIBOR plus 0.95%		3.56	%	11/1/2030
345 East 94th Street - Series B	8,173		8,650		LIBOR plus 2.24%		3.56	%	11/1/2030
561 10th Avenue - Series A	114,500		114,500		70.0% of LIBOR plus 1.07%		3.85	%	11/1/2033
561 10th Avenue - Series B	18,170		19,250		LIBOR plus 2.45%		3.85	%	11/1/2033
Total mortgage debt	935,131		968,793
Senior unsecured notes:(5)
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 (5)	215,000		215,000		LIBOR plus 1.20%		3.58	%	3/19/2025
Unsecured revolving credit facility (5)	—		—		LIBOR plus 1.30%		—		3/31/2025
Unsecured term loan facility (5)	175,000		175,000		LIBOR plus 1.50%		4.02	%	12/31/2026
Total principal	2,300,131		2,333,793
Deferred financing costs, net	(13,277)		(14,881)
Unamortized debt discount	(8,135)		(8,547)
Total	$	2,278,719	$	2,310,365

______________

(1)The effective rate is the yield as of June 30, 2022 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)Ownership of 383 Main Avenue, Norwalk CT was transferred to the lender during April 2022.

(5)At June 30, 2022, we were in compliance with all debt covenants.

Principal Payments

    Aggregate required principal payments at June 30, 2022 are as follows (amounts in thousands):

Year	Amortization		Maturities		Total
2022	$	4,194	$	—	$	4,194
2023	9,632		—		9,632
2024	9,903		77,675		87,578
2025	7,979		315,000		322,979
2026	8,491		225,000		233,491
Thereafter	35,975		1,606,282		1,642,257
Total	$	76,174	$	2,223,957	$	2,300,131

Deferred Financing Costs

    Deferred financing costs, net, consisted of the following at June 30, 2022 and December 31, 2021 (amounts in thousands):

	June 30, 2022		December 31, 2021
Financing costs	$	44,065	$	44,637
Less: accumulated amortization	(24,727)		(22,525)
Total deferred financing costs, net	$	19,338	$	22,112

    Amortization expense related to deferred financing costs was $1.3 million and $1.1 million for the three months ended June 30, 2022 and 2021, respectively, and $2.7 million and $2.3 million for the six months ended June 30, 2022 and 2021, 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 governs an amended senior unsecured credit facility (the "Credit Facility") with Bank of America, N.A., as administrative agent and the other lenders party thereto. The Amended Credit Agreement amended the amended and restated credit agreement dated August 29, 2017 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 $850.0 million revolving credit facility that matures on March 31, 2025, and a $215.0 million term loan facility that matures on March 19, 2025. As of June 30, 2022, we had no borrowings under the revolving credit facility and $215.0 million under the term loan facility.

     On March 19, 2020, through our Operating Partnership, we entered into a senior unsecured term loan facility (the “Term Loan Facility”) with Wells Fargo Bank, National Association, as administrative agent, and the other lenders party thereto. The Term Loan Facility is in the original principal amount of $175.0 million and matures on December 31, 2026. 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 June 30, 2022, our borrowings amounted to $175.0 million under the Term Loan Facility.

    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. Both facilities also require 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 agreements governing both facilities also 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 a change of control. As of June 30, 2022, we were in compliance with these covenants.

Senior Unsecured Notes

    The terms of the senior unsecured notes 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 agreements also 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, the occurrence of certain change of control transactions and loss of real estate investment trust qualification. As of June 30, 2022, we were in compliance with these covenants.

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Accounts Payable and Accrued Expenses

6 Months Ended

Jun. 30, 2022

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 June 30, 2022 and December 31, 2021 (amounts in thousands):

	June 30, 2022		December 31, 2021
Accrued capital expenditures	$	67,815	$	49,247
Accounts payable and accrued expenses	35,900		41,664
Interest rate swaps liability	5,612		25,308
Accrued interest payable	3,630		3,460
Due (from) to affiliated companies	880		1,131
Total accounts payable and accrued expenses	$	113,837	$	120,810

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Financial Instruments and Fair Values

6 Months Ended

Jun. 30, 2022

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 its obligations.

In May 2022, we entered into forward interest rate swaps that aggregate $390.0 million to replace the $265.0 million swap which currently fixes the interest rate on a portion of our outstanding term loans balance and is due to expire in August 2022. The new swaps go into effect upon the expiration of the current swap and once effective, the interest rate on our term loans will be 100% fixed.

    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 June 30, 2022, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $6.1 million. If we had breached any of these provisions at June 30, 2022, we could have been required to settle our obligations under the agreements at their termination value of $6.1 million.

    As of June 30, 2022 and December 31, 2021, we had interest rate swaps and caps with an aggregate notional value of $841.3 million and $451.3 million, respectively. The notional value does not represent exposure to credit, interest rate or market risks. As of June 30, 2022, the fair value of our interest rate swaps amounted to $4.1 million, which is included in prepaid assets and other expenses and $(5.6) million which is included in accounts payable and accrued expenses on the condensed consolidated balance sheet. As of December 31, 2021, the fair value of our interest rate swaps amounted to $(25.3) million, which is included in accounts payable and accrued expenses on the condensed consolidated balance sheet. These interest rate swaps have been designated as cash flow hedges and hedge the variability in future cash flows associated with our existing variable-rate term loan facilities. Interest rate caps not designated as hedges are not speculative and are used to manage our exposure to interest rate movements, but do not meet the strict hedge accounting requirements.

    As of June 30, 2022 and 2021, our cash flow hedges are deemed highly effective and a net unrealized gain (loss) of $12.8 million and $2.8 million for the three months ended June 30, 2022 and 2021, respectively, and a net unrealized gain (loss) of $25.9 million and $5.7 million for the six months ended June 30, 2022 and 2021, respectively, relating to both active and terminated hedges of interest rate risk, are reflected in the condensed consolidated statements of comprehensive income (loss). Amounts reported in accumulated other comprehensive loss related to derivatives will be reclassified to interest expense as interest payments are made on the debt. We estimate that $2.4 million net loss of the current balance held in accumulated other comprehensive 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 June 30, 2022 and December 31, 2021 (amounts in thousands):     

							June 30, 2022				December 31, 2021
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	$	—	$	(98)	$	—	$	(3,184)
Interest rate swap	36,820		70% of 1 Month LIBOR	2.5000%	December 1, 2021	November 1, 2030	—		(1,208)		—		(4,527)
Interest rate swap	103,790		70% of 1 Month LIBOR	2.5000%	December 1, 2021	November 1, 2033	—		(4,306)		—		(15,945)
Interest rate swap	10,710		70% of 1 Month LIBOR	1.7570%	December 1, 2021	November 1, 2033	236				—		(754)
Interest rate swap	19,008		1 Month LIBOR	2.2540%	December 1, 2021	November 1, 2030	492		—		—		(898)
Interest rate cap	6,780		70% of 1 Month LIBOR	4.5000%	December 1, 2021	October 1, 2024	11		—		5		—
Interest rate cap	9,188		1 Month LIBOR	5.5000%	December 1, 2021	October 1, 2024	26		—		8		—
Interest rate swap	175,000		1 Month SOFR	2.5620%	August 31, 2022	December 31, 2026	1,703		—		—		—
Interest rate swap	107,500		1 Month SOFR	2.6260%	August 19, 2022	March 19, 2025	828		—		—		—
Interest rate swap	107,500		1 Month SOFR	2.6280%	August 19, 2022	March 19, 2025	824		—		—		—
							$	4,120	$	(5,612)	$	13	$	(25,308)

    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 and six months ended June 30, 2022 and 2021 (amounts in thousands):    

	Three Months Ended				Six Months Ended
Effects of Cash Flow Hedges	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Amount of gain (loss) recognized in other comprehensive income (loss)	$	10,057	$	(95)	$	19,819	$	(36)
Amount of loss reclassified from accumulated other comprehensive loss into interest expense	(2,741)		(2,898)		(6,036)		(5,767)

    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 and six months ended June 30, 2022 and 2021 (amounts in thousands):

	Three Months Ended				Six Months Ended
Effects of Cash Flow Hedges	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Total interest expense presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded	$	(25,042)	$	(23,422)	$	(50,056)	$	(46,976)
Amount of loss reclassified from accumulated other comprehensive income into interest expense	(2,741)		(2,898)		(6,036)		(5,767)

Fair Valuation

    The estimated fair values at June 30, 2022 and December 31, 2021 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 our derivatives were classified as Level 2 of the fair value hierarchy.

    The fair values of our mortgage notes payable, senior unsecured notes - Series A, B, C, D, E, F, G and H - unsecured term loan facilities and unsecured revolving credit facility 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 by us.

    The following tables summarize the carrying and estimated fair values of our financial instruments as of June 30, 2022 and December 31, 2021 (amounts in thousands):

	June 30, 2022
			Estimated Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Interest rate swaps included in prepaid expenses and other assets	$	4,082	$	4,082	$	—	$	4,082	$	—
Interest rate swap included in accounts payable and accrued expenses	5,612		5,612		—		5,612		$	—
Mortgage notes payable	916,657		844,706		—		—		844,706
Senior unsecured notes - Series A, B, C, D, E, F, G and H	973,555		906,567		—		—		906,567
Unsecured term loan facilities	388,507		390,000		—		—		390,000

    

	December 31, 2021
			Estimated Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Interest rate swap included in accounts payable and accrued expenses	$	25,308	$	25,308	$	—	$	25,308	$	—
Mortgage notes payable	948,769		960,933		—		—		960,933
Senior unsecured notes - Series A, B, C, D, E, F, G and H	973,373		994,389		—		—		994,389
Unsecured term loan facilities	388,223		390,000		—		—		390,000

    Disclosure about the fair value of financial instruments is based on pertinent information available to us as of June 30, 2022 and December 31, 2021. 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

6 Months Ended

Jun. 30, 2022

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 June 30, 2022 and 2021 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 and six months ended June 30, 2022 and 2021 are as follows (amounts in thousands):

	Three Months Ended				Six Months Ended
Rental revenue	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Fixed payments	$	134,794	$	124,432	$	268,195	$	250,204
Variable payments	14,545		16,365		28,658		30,824
Total rental revenue	$	149,339	$	140,797	$	296,853	$	281,028

As of June 30, 2022, 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 2039 (amounts in thousands):

Remainder of 2022	$	244,025
2023	495,765
2024	473,800
2025	437,398
2026	396,072
Thereafter	1,853,731
	$	3,900,791

The above future minimum lease payments exclude tenant recoveries and the net accretion of above and 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 $28.8 million and lease liabilities of $28.8 million in our consolidated balance sheets as of June 30, 2022. 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.

    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 Accounting Standards Update 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 June 30, 2022 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 June 30, 2022 was 47.9 years.

    As of June 30, 2022, 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 2022	$	759
2023	1,518
2024	1,518
2025	1,518
2026	1,518
Thereafter	63,744
Total undiscounted cash flows	70,575
Present value discount	(41,794)
Ground lease liabilities	$	28,781

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 June 30, 2022 and 2021 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 and six months ended June 30, 2022 and 2021 are as follows (amounts in thousands):

	Three Months Ended				Six Months Ended
Rental revenue	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Fixed payments	$	134,794	$	124,432	$	268,195	$	250,204
Variable payments	14,545		16,365		28,658		30,824
Total rental revenue	$	149,339	$	140,797	$	296,853	$	281,028

As of June 30, 2022, 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 2039 (amounts in thousands):

Remainder of 2022	$	244,025
2023	495,765
2024	473,800
2025	437,398
2026	396,072
Thereafter	1,853,731
	$	3,900,791

The above future minimum lease payments exclude tenant recoveries and the net accretion of above and 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 $28.8 million and lease liabilities of $28.8 million in our consolidated balance sheets as of June 30, 2022. 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.

    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 Accounting Standards Update 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 June 30, 2022 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 June 30, 2022 was 47.9 years.

    As of June 30, 2022, 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 2022	$	759
2023	1,518
2024	1,518
2025	1,518
2026	1,518
Thereafter	63,744
Total undiscounted cash flows	70,575
Present value discount	(41,794)
Ground lease liabilities	$	28,781

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Legal Proceedings

    Except as described below, as of June 30, 2022, 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 sought to vacate that portion of the award. On September 27, 2021, the court denied Respondents' motion to vacate and entered judgement in the aforementioned amount, inclusive of accumulated interest. Respondents have appealed that ruling. On May 10, 2022, Respondents moved to dismiss the appeal and judgment on the grounds that a recent decision of the United States Supreme Court held that the federal courts have no subject matter jurisdiction over the case. Claimants opposed the motion, which is pending. 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 June 30, 2022, we estimate that we will incur approximately $105.3 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 June 30, 2022, 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 June 30, 2022, 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 June 30, 2022, 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

6 Months Ended

Jun. 30, 2022

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 capital events, and any increase in valuation from the time of one such event to the next 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 per unit distributions as OP units, which equal per share dividends (both regular and special) on our common stock. Market and performance-based LTIPs 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.

    As of June 30, 2022, there were 162,689,535 share of Class A common stock, 994,252 shares of Class B common stock and 111,420,579 OP Units outstanding, of which 163,683,787, or 59.5%, were owned by us and 111,420,579, or 40.5%, 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 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 from January 1, 2022 through December 31, 2023. 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 and will be subject to stock price, availability, trading volume, general market conditions, and applicable securities laws. 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 June 30, 2022:

Period	Total Number of Shares Purchased	Weighted Average Price Paid per Share		Maximum Approximate Dollar Value Available for Future Purchase (in thousands)
April 2022	2,308,026	$	8.95	$	467,350
May 2022	1,050,731	$	8.09	$	458,849
June 2022	3,252,202	$	7.16	$	435,560

Private Perpetual Preferred Units

    As of June 30, 2022, 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") outstanding. 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 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. Both series 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 $5.8 million and $11.8 million for the three and six months ended June 30, 2022, respectively, and $6.1 million for the three and six months ended June 30, 2021. Total distributions paid to OP unitholders were $3.9 million and $7.7 million for the three and six months ended June 30, 2022, respectively, and $3.4 million for the three and six months ended June 30, 2021. Total distributions paid to preferred unitholders were $1.1 million and $2.1 million for the three months and six ended June 30, 2022, respectively, and $1.1 million and $2.1 million for the three and six months ended June 30, 2021, 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 June 30, 2022, 5.9 million shares of common stock remain available for future issuance.

Annually, we make grants of LTIP units to our non-employee directors under the 2019 Plan. In 2022, each of our directors received 60% of their $200,000 annual base retainer in the form of equity vesting ratably over four years, and could elect to receive the remaining 40% of such base retainer in (i) cash at the face value of the award, (ii) immediately vesting equity at the face value of the award, or (iii) equity vesting ratably over three years at 120% of the face amount. Each director

could elect to receive any equity portion of the base retainer in either (i) LTIP units or (ii) restricted shares of our Class A common stock. In accordance with each director's election, we granted a total of 142,358 LTIP units that are subject to time-based vesting with fair market values of $1.1 million. The LTIP units vest ratably over three or four years from the date of the grant, based on grantee election, subject generally to the director's continued service on our Board of Directors. We also granted 51,284 LTIP units that are subject to immediate vesting with fair market values of $0.3 million.

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 for awards granted in 2020 and after and age of 60 for awards granted before 2020 and (ii) the date on which the employee has first completed ten years of continuous service with us or our affiliates. Share-based compensation for market-based equity awards and performance-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. Additionally, for the performance-based equity awards, we assess, at each reporting period, whether it is probable that the performance conditions will be satisfied. We recognize expense respective to the number of awards we expect to vest at the conclusion of the measurement period. Changes in estimate are accounted for in the period of change through a cumulative catch-up adjustment.

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 an appropriate 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 or performance 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, the fair value of the awards are based on the market price of our stock at the grant date.

LTIP units and restricted stock issued during the six months ended June 30, 2022 were valued at $22.4 million. The weighted average per unit or share fair value was $7.21 for grants issued in 2022. The fair value per unit or share granted in 2022 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 2.0%, a risk-free interest rate from 1.4% to 2.0%, and an expected price volatility from 37.0% to 53.0%. No other stock options, dividend equivalents, or stock appreciation rights were issued or outstanding in 2022.

    The following is a summary of restricted stock and LTIP unit activity for the six months ended June 30, 2022:

	Restricted Stock	Time-based LTIPs	Market-based LTIPs	Performance-based LTIPs	Weighted Average Grant Fair Value
Unvested balance at December 31, 2021	214,408	2,499,592	5,039,134	—	$	7.02
Vested	(67,654)	(1,052,119)	—		9.95
Granted	232,448	1,514,434	780,155	578,943	7.21
Forfeited or unearned	(9,874)	—	(1,311,839)	—	7.20
Unvested balance at June 30, 2022	369,328	2,961,907	4,507,450	578,943	6.67

    The time-based LTIPs 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 market-based and performance-based awards, and accordingly, we recognized $0.6 million and $1.6 million for the three and six months ended June 30, 2022, respectively, and $0.4 million and $1.4 million for the three and six months ended June 30, 2021, respectively. Unrecognized compensation expense was $1.5 million at June 30, 2022, which will be recognized over a weighted average period of 3.6 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 $5.4 million and $8.9 million for the three and six months ended June 30, 2022, respectively, and $4.8 million and $8.6 million for the three and six months ended

June 30, 2021, respectively. Unrecognized compensation expense was $35.1 million at June 30, 2022, which will be recognized over a weighted average period of 2.8 years.

Earnings Per Share

    Earnings per share for the three and six months ended June 30, 2022 and 2021 is computed as follows (amounts in thousands, except per share amounts):

	Three Months Ended				Six Months Ended
	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Numerator - Basic:
Net income	$	48,695	$	4,411	$	31,474	$	1,220
Private perpetual preferred unit distributions	(1,051)		(1,051)		(2,101)		(2,101)
Net (income) loss attributable to non-controlling interests	(18,065)		(1,285)		(11,083)		335
Earnings allocated to unvested shares	(64)		(9)		(71)		(9)
Net income (loss) attributable to common stockholders – basic	$	29,515	$	2,066	$	18,219	$	(555)
Numerator - Diluted:
Net income	$	48,695	$	4,411	$	31,474	$	1,220
Private perpetual preferred unit distributions	(1,051)		(1,051)		(2,101)		(2,101)
Net loss attributable to non-controlling interests in other partnerships	159		—		222		—
Earnings allocated to unvested shares	(64)		(9)		(71)		(9)
Net income (loss) attributable to common stockholders – diluted	$	47,739	$	3,351	$	29,524	$	(890)
Denominator:
Weighted average shares outstanding – basic	167,118		171,615		168,099		172,183
OP units	102,960		106,278		103,735		105,704
Effect of dilutive securities:
Stock-based compensation plans	7		543		3		—
Weighted average shares outstanding – diluted	270,085		278,436		271,837		277,887
Earnings per share:
Basic	$	0.18	$	0.01	$	0.11	$	0.00
Diluted	$	0.18	$	0.01	$	0.11	$	0.00

    There were 603 and 398 antidilutive shares and LTIP units for the three and six months ended June 30, 2022, respectively, and 1,051 and 955 antidilutive shares and LTIP units for the three and six months ended June 30, 2021, respectively.

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Related Party Transactions

6 Months Ended

Jun. 30, 2022

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, President and Chief Executive Officer, of $0.3 million for the three months ended June 30, 2022 and 2021, and $0.5 million for the six months ended June 30, 2022 and 2021. 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 $0.1 million and $0.1 million for the three months ended June 30, 2022 and 2021, respectively, and $0.1 million for the six months ended June 30, 2022 and 2021. 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 June 30, 2022 and 2021, respectively, and $0.2 million for the six months ended June 30, 2022 and 2021.

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Segment Reporting

6 Months Ended

Jun. 30, 2022

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 rents as if the sales or rents 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 six months ended June 30, 2022 and 2021 (amounts in thousands):

	Three Months Ended June 30, 2022
	Real Estate		Observatory		Intersegment Elimination		Total
Revenues:
Rental revenue	$	149,339	$	—	$	—	$	149,339
Intercompany rental revenue	17,109		—		(17,109)		—
Observatory revenue	—		27,368		—		27,368
Lease termination fees	18,859		—		—		18,859
Third-party management and other fees	326		—		—		326
Other revenue and fees	2,130		—		—		2,130
Total revenues	187,763		27,368		(17,109)		198,022
Operating expenses:
Property operating expenses	37,433		—		—		37,433
Intercompany rent expense	—		17,109		(17,109)		—
Ground rent expense	2,332		—		—		2,332
General and administrative expenses	15,876		—		—		15,876
Observatory expenses	—		7,776		—		7,776
Real estate taxes	29,802		—		—		29,802
Depreciation and amortization	58,254		50		—		58,304
Total operating expenses	143,697		24,935		(17,109)		151,523
Total operating income	44,066		2,433		—		46,499
Other income (expense):
Interest income	426		5		—		431
Interest expense	(25,042)		—		—		(25,042)
Gain on disposition of property	27,170		—		—		27,170
Income before income taxes	46,620		2,438		—		49,058
Income tax expense	(38)		(325)		—		(363)
Net income	$	46,582	$	2,113	$	—	$	48,695
Segment assets	$	3,969,257	$	247,974	$	—	$	4,217,231
Expenditures for segment assets	$	13,115	$	—	$	—	$	13,115

	Three Months Ended June 30, 2021
	Real Estate		Observatory		Intersegment Elimination		Total
Revenues:
Rental revenue	$	140,797	$	—	$	—	$	140,797
Intercompany rental revenue	6,029		—		(6,029)		—
Observatory revenue	—		8,359		—		8,359
Lease termination fees	3,339		—		—		3,339
Third-party management and other fees	327		—		—		327
Other revenue and fees	586		—		—		586
Total revenues	151,078		8,359		(6,029)		153,408
Operating expenses:
Property operating expenses	28,793		—		—		28,793
Intercompany rent expense	—		6,029		(6,029)		—
Ground rent expense	2,332		—		—		2,332
General and administrative expenses	14,089		—		—		14,089
Observatory expenses	—		5,268		—		5,268
Real estate taxes	31,354		—		—		31,354
Depreciation and amortization	45,066		22		—		45,088
Total operating expenses	121,634		11,319		(6,029)		126,924
Total operating income (loss)	29,444		(2,960)		—		26,484
Other income (expense):
Interest income	163		1		—		164
Interest expense	(23,422)		—		—		(23,422)
Income (loss) before income taxes	6,185		(2,959)		—		3,226
Income tax (expense) benefit	(135)		1,320		—		1,185
Net income (loss)	$	6,050	$	(1,639)	$	—	$	4,411
Segment assets	$	3,880,853	$	242,619	$	—	$	4,123,472
Expenditures for segment assets	$	19,975	$	—	$	—	$	19,975

	Six Months Ended June 30, 2022
	Real Estate		Observatory		Intersegment Elimination		Total
Revenues:
Rental revenue	$	296,853	$	—	$	—	$	296,853
Intercompany rental revenue	27,729		—		(27,729)		—
Observatory revenue	—		40,609		—		40,609
Lease termination fees	20,032		—		—		20,032
Third-party management and other fees	636		—		—		636
Other revenue and fees	3,926		—		—		3,926
Total revenues	349,176		40,609		(27,729)		362,056
Operating expenses:
Property operating expenses	76,077		—		—		76,077
Intercompany rent expense	—		27,729		(27,729)		—
Ground rent expense	4,663		—		—		4,663
General and administrative expenses	29,562		—		—		29,562
Observatory expenses	—		13,991		—		13,991
Real estate taxes	59,806		—		—		59,806
Depreciation and amortization	125,325		85		—		125,410
Total operating expenses	295,433		41,805		(27,729)		309,509
Total operating income (loss)	53,743		(1,196)		—		52,547
Other income (expense):
Interest income	575		5		—		580
Interest expense	(50,056)		—		—		(50,056)
Gain on disposition of property	27,170		—		—		27,170
Income (loss) before income taxes	31,432		(1,191)		—		30,241
Income tax (expense) benefit	(182)		1,415		—		1,233
Net income	$	31,250	$	224	$	—	$	31,474
Expenditures for segment assets	$	51,999	$	291	$	—	$	52,290

	Six Months Ended June 30, 2021
	Real Estate		Observatory		Intersegment Elimination		Total
Revenues:
Rental revenue	$	281,028	$	—	$	—	$	281,028
Intercompany rental revenue	10,961		—		(10,961)		—
Observatory revenue	—		10,962		—		10,962
Lease termination fees	4,628		—		—		4,628
Third-party management and other fees	603		—		—		603
Other revenue and fees	1,491		—		—		1,491
Total revenues	298,711		10,962		(10,961)		298,712
Operating expenses:
Property operating expenses	59,072		—		—		59,072
Intercompany rent expense	—		10,961		(10,961)		—
Ground rent expense	4,663		—		—		4,663
General and administrative expenses	27,942		—		—		27,942
Observatory expenses	—		9,856		—		9,856
Real estate taxes	62,801		—		—		62,801
Depreciation and amortization	89,485		60		—		89,545
Total operating expenses	243,963		20,877		(10,961)		253,879
Total operating income (loss)	54,748		(9,915)		—		44,833
Other income (expense):
Interest income	283		3		—		286
Interest expense	(46,976)		—		—		(46,976)
Loss on early extinguishment of debt	(214)		—		—		(214)
Income (loss) before income taxes	7,841		(9,912)		—		(2,071)
Income tax (expense) benefit	(418)		3,709		—		3,291
Net income (loss)	$	7,423	$	(6,203)	$	—	$	1,220
Expenditures for segment assets	$	43,307	$	4	$	—	$	43,311

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Subsequent Events	6 Months Ended
	Jun. 30, 2022
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsNone.

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2022

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, 2021 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.

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 VIE 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 VIE 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.

Fair Valuation

The estimated fair values at June 30, 2022 and December 31, 2021 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 our derivatives were classified as Level 2 of the fair value hierarchy.

    The fair values of our mortgage notes payable, senior unsecured notes - Series A, B, C, D, E, F, G and H - unsecured term loan facilities and unsecured revolving credit facility 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 by us.

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Deferred Costs, Acquired Lease Intangibles and Goodwill (Tables)

6 Months Ended

Jun. 30, 2022

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

Deferred costs, net

Deferred costs, net, consisted of the following as of June 30, 2022 and December 31, 2021 (amounts in thousands):  

	June 30, 2022		December 31, 2021
Leasing costs	$	217,415	$	211,189
Acquired in-place lease value and deferred leasing costs	158,874		166,491
Acquired above-market leases	29,419		33,289
	405,708		410,969
Less: accumulated amortization	(218,336)		(215,764)
Total deferred costs, net, excluding net deferred financing costs	$	187,372	$	195,205

Deferred financing costs, net, consisted of the following at June 30, 2022 and December 31, 2021 (amounts in thousands):

	June 30, 2022		December 31, 2021
Financing costs	$	44,065	$	44,637
Less: accumulated amortization	(24,727)		(22,525)
Total deferred financing costs, net	$	19,338	$	22,112

Amortizing acquired intangible assets and liabilities

Amortizing acquired intangible assets and liabilities consisted of the following as of June 30, 2022 and December 31, 2021 (amounts in thousands):

	June 30, 2022		December 31, 2021
Acquired below-market ground leases	$	396,916	$	396,916
Less: accumulated amortization	(63,928)		(60,012)
Acquired below-market ground leases, net	$	332,988	$	336,904

	June 30, 2022		December 31, 2021
Acquired below-market leases	$	(64,635)	$	(65,403)
Less: accumulated amortization	44,457		40,462
Acquired below-market leases, net	$	(20,178)	$	(24,941)

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Debt (Tables)

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Long-term debt

Debt consisted of the following as of June 30, 2022 and December 31, 2021 (amounts in thousands):

	Principal Balance				As of June 30, 2022
	June 30, 2022		December 31, 2021		Stated Rate		Effective Rate(1)		Maturity Date(2)
Mortgage debt collateralized by:
Fixed rate mortgage debt
Metro Center	$	83,824	$	85,032	3.59	%	3.67	%	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	%	4.73	%	7/1/2027
1010 Third Avenue and 77 West 55th Street	36,255		36,670		4.01	%	4.21	%	1/5/2028
250 West 57th Street	180,000		180,000		2.83	%	3.21	%	12/1/2030
10 Bank Street	30,609		31,091		4.23	%	4.37	%	6/1/2032
383 Main Avenue(4)	—		30,000		—	%	—	%	—
1333 Broadway	160,000		160,000		4.21	%	4.29	%	2/5/2033
345 East 94th Street - Series A	43,600		43,600		70.0% of LIBOR plus 0.95%		3.56	%	11/1/2030
345 East 94th Street - Series B	8,173		8,650		LIBOR plus 2.24%		3.56	%	11/1/2030
561 10th Avenue - Series A	114,500		114,500		70.0% of LIBOR plus 1.07%		3.85	%	11/1/2033
561 10th Avenue - Series B	18,170		19,250		LIBOR plus 2.45%		3.85	%	11/1/2033
Total mortgage debt	935,131		968,793
Senior unsecured notes:(5)
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 (5)	215,000		215,000		LIBOR plus 1.20%		3.58	%	3/19/2025
Unsecured revolving credit facility (5)	—		—		LIBOR plus 1.30%		—		3/31/2025
Unsecured term loan facility (5)	175,000		175,000		LIBOR plus 1.50%		4.02	%	12/31/2026
Total principal	2,300,131		2,333,793
Deferred financing costs, net	(13,277)		(14,881)
Unamortized debt discount	(8,135)		(8,547)
Total	$	2,278,719	$	2,310,365

______________

(1)The effective rate is the yield as of June 30, 2022 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)Ownership of 383 Main Avenue, Norwalk CT was transferred to the lender during April 2022.

(5)At June 30, 2022, we were in compliance with all debt covenants.

Aggregate required principal payments

Aggregate required principal payments at June 30, 2022 are as follows (amounts in thousands):

Year	Amortization		Maturities		Total
2022	$	4,194	$	—	$	4,194
2023	9,632		—		9,632
2024	9,903		77,675		87,578
2025	7,979		315,000		322,979
2026	8,491		225,000		233,491
Thereafter	35,975		1,606,282		1,642,257
Total	$	76,174	$	2,223,957	$	2,300,131

Deferred financing costs, net

Deferred costs, net, consisted of the following as of June 30, 2022 and December 31, 2021 (amounts in thousands):  

	June 30, 2022		December 31, 2021
Leasing costs	$	217,415	$	211,189
Acquired in-place lease value and deferred leasing costs	158,874		166,491
Acquired above-market leases	29,419		33,289
	405,708		410,969
Less: accumulated amortization	(218,336)		(215,764)
Total deferred costs, net, excluding net deferred financing costs	$	187,372	$	195,205

Deferred financing costs, net, consisted of the following at June 30, 2022 and December 31, 2021 (amounts in thousands):

	June 30, 2022		December 31, 2021
Financing costs	$	44,065	$	44,637
Less: accumulated amortization	(24,727)		(22,525)
Total deferred financing costs, net	$	19,338	$	22,112

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Accounts Payable and Accrued Expenses (Tables)

6 Months Ended

Jun. 30, 2022

Payables and Accruals [Abstract]

Accounts payable and accrued expenses

Accounts payable and accrued expenses consisted of the following as of June 30, 2022 and December 31, 2021 (amounts in thousands):

	June 30, 2022		December 31, 2021
Accrued capital expenditures	$	67,815	$	49,247
Accounts payable and accrued expenses	35,900		41,664
Interest rate swaps liability	5,612		25,308
Accrued interest payable	3,630		3,460
Due (from) to affiliated companies	880		1,131
Total accounts payable and accrued expenses	$	113,837	$	120,810

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Financial Instruments and Fair Values (Tables)

6 Months Ended

Jun. 30, 2022

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 June 30, 2022 and December 31, 2021 (amounts in thousands):     

							June 30, 2022				December 31, 2021
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	$	—	$	(98)	$	—	$	(3,184)
Interest rate swap	36,820		70% of 1 Month LIBOR	2.5000%	December 1, 2021	November 1, 2030	—		(1,208)		—		(4,527)
Interest rate swap	103,790		70% of 1 Month LIBOR	2.5000%	December 1, 2021	November 1, 2033	—		(4,306)		—		(15,945)
Interest rate swap	10,710		70% of 1 Month LIBOR	1.7570%	December 1, 2021	November 1, 2033	236				—		(754)
Interest rate swap	19,008		1 Month LIBOR	2.2540%	December 1, 2021	November 1, 2030	492		—		—		(898)
Interest rate cap	6,780		70% of 1 Month LIBOR	4.5000%	December 1, 2021	October 1, 2024	11		—		5		—
Interest rate cap	9,188		1 Month LIBOR	5.5000%	December 1, 2021	October 1, 2024	26		—		8		—
Interest rate swap	175,000		1 Month SOFR	2.5620%	August 31, 2022	December 31, 2026	1,703		—		—		—
Interest rate swap	107,500		1 Month SOFR	2.6260%	August 19, 2022	March 19, 2025	828		—		—		—
Interest rate swap	107,500		1 Month SOFR	2.6280%	August 19, 2022	March 19, 2025	824		—		—		—
							$	4,120	$	(5,612)	$	13	$	(25,308)

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 and six months ended June 30, 2022 and 2021 (amounts in thousands):    

	Three Months Ended				Six Months Ended
Effects of Cash Flow Hedges	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Amount of gain (loss) recognized in other comprehensive income (loss)	$	10,057	$	(95)	$	19,819	$	(36)
Amount of loss reclassified from accumulated other comprehensive loss into interest expense	(2,741)		(2,898)		(6,036)		(5,767)

    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 and six months ended June 30, 2022 and 2021 (amounts in thousands):

	Three Months Ended				Six Months Ended
Effects of Cash Flow Hedges	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Total interest expense presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded	$	(25,042)	$	(23,422)	$	(50,056)	$	(46,976)
Amount of loss reclassified from accumulated other comprehensive income into interest expense	(2,741)		(2,898)		(6,036)		(5,767)

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 June 30, 2022 and December 31, 2021 (amounts in thousands):

	June 30, 2022
			Estimated Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Interest rate swaps included in prepaid expenses and other assets	$	4,082	$	4,082	$	—	$	4,082	$	—
Interest rate swap included in accounts payable and accrued expenses	5,612		5,612		—		5,612		$	—
Mortgage notes payable	916,657		844,706		—		—		844,706
Senior unsecured notes - Series A, B, C, D, E, F, G and H	973,555		906,567		—		—		906,567
Unsecured term loan facilities	388,507		390,000		—		—		390,000

    

	December 31, 2021
			Estimated Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Interest rate swap included in accounts payable and accrued expenses	$	25,308	$	25,308	$	—	$	25,308	$	—
Mortgage notes payable	948,769		960,933		—		—		960,933
Senior unsecured notes - Series A, B, C, D, E, F, G and H	973,373		994,389		—		—		994,389
Unsecured term loan facilities	388,223		390,000		—		—		390,000

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Leases (Tables)

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Components of rental revenue

The components of rental revenue for the three and six months ended June 30, 2022 and 2021 are as follows (amounts in thousands):

	Three Months Ended				Six Months Ended
Rental revenue	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Fixed payments	$	134,794	$	124,432	$	268,195	$	250,204
Variable payments	14,545		16,365		28,658		30,824
Total rental revenue	$	149,339	$	140,797	$	296,853	$	281,028

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

As of June 30, 2022, 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 2039 (amounts in thousands):

Remainder of 2022	$	244,025
2023	495,765
2024	473,800
2025	437,398
2026	396,072
Thereafter	1,853,731
	$	3,900,791

Future minimum lease payments to be paid

As of June 30, 2022, 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 2022	$	759
2023	1,518
2024	1,518
2025	1,518
2026	1,518
Thereafter	63,744
Total undiscounted cash flows	70,575
Present value discount	(41,794)
Ground lease liabilities	$	28,781

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Equity (Tables)

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Schedule of equity securities repurchased

The following table summarizes our purchases of equity securities in each of the three months ended June 30, 2022:

Period	Total Number of Shares Purchased	Weighted Average Price Paid per Share		Maximum Approximate Dollar Value Available for Future Purchase (in thousands)
April 2022	2,308,026	$	8.95	$	467,350
May 2022	1,050,731	$	8.09	$	458,849
June 2022	3,252,202	$	7.16	$	435,560

Summary of restricted stock and LTIP unit activity

The following is a summary of restricted stock and LTIP unit activity for the six months ended June 30, 2022:

	Restricted Stock	Time-based LTIPs	Market-based LTIPs	Performance-based LTIPs	Weighted Average Grant Fair Value
Unvested balance at December 31, 2021	214,408	2,499,592	5,039,134	—	$	7.02
Vested	(67,654)	(1,052,119)	—		9.95
Granted	232,448	1,514,434	780,155	578,943	7.21
Forfeited or unearned	(9,874)	—	(1,311,839)	—	7.20
Unvested balance at June 30, 2022	369,328	2,961,907	4,507,450	578,943	6.67

Earnings per share

Earnings per share for the three and six months ended June 30, 2022 and 2021 is computed as follows (amounts in thousands, except per share amounts):

	Three Months Ended				Six Months Ended
	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Numerator - Basic:
Net income	$	48,695	$	4,411	$	31,474	$	1,220
Private perpetual preferred unit distributions	(1,051)		(1,051)		(2,101)		(2,101)
Net (income) loss attributable to non-controlling interests	(18,065)		(1,285)		(11,083)		335
Earnings allocated to unvested shares	(64)		(9)		(71)		(9)
Net income (loss) attributable to common stockholders – basic	$	29,515	$	2,066	$	18,219	$	(555)
Numerator - Diluted:
Net income	$	48,695	$	4,411	$	31,474	$	1,220
Private perpetual preferred unit distributions	(1,051)		(1,051)		(2,101)		(2,101)
Net loss attributable to non-controlling interests in other partnerships	159		—		222		—
Earnings allocated to unvested shares	(64)		(9)		(71)		(9)
Net income (loss) attributable to common stockholders – diluted	$	47,739	$	3,351	$	29,524	$	(890)
Denominator:
Weighted average shares outstanding – basic	167,118		171,615		168,099		172,183
OP units	102,960		106,278		103,735		105,704
Effect of dilutive securities:
Stock-based compensation plans	7		543		3		—
Weighted average shares outstanding – diluted	270,085		278,436		271,837		277,887
Earnings per share:
Basic	$	0.18	$	0.01	$	0.11	$	0.00
Diluted	$	0.18	$	0.01	$	0.11	$	0.00

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Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2022

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 six months ended June 30, 2022 and 2021 (amounts in thousands):

	Three Months Ended June 30, 2022
	Real Estate		Observatory		Intersegment Elimination		Total
Revenues:
Rental revenue	$	149,339	$	—	$	—	$	149,339
Intercompany rental revenue	17,109		—		(17,109)		—
Observatory revenue	—		27,368		—		27,368
Lease termination fees	18,859		—		—		18,859
Third-party management and other fees	326		—		—		326
Other revenue and fees	2,130		—		—		2,130
Total revenues	187,763		27,368		(17,109)		198,022
Operating expenses:
Property operating expenses	37,433		—		—		37,433
Intercompany rent expense	—		17,109		(17,109)		—
Ground rent expense	2,332		—		—		2,332
General and administrative expenses	15,876		—		—		15,876
Observatory expenses	—		7,776		—		7,776
Real estate taxes	29,802		—		—		29,802
Depreciation and amortization	58,254		50		—		58,304
Total operating expenses	143,697		24,935		(17,109)		151,523
Total operating income	44,066		2,433		—		46,499
Other income (expense):
Interest income	426		5		—		431
Interest expense	(25,042)		—		—		(25,042)
Gain on disposition of property	27,170		—		—		27,170
Income before income taxes	46,620		2,438		—		49,058
Income tax expense	(38)		(325)		—		(363)
Net income	$	46,582	$	2,113	$	—	$	48,695
Segment assets	$	3,969,257	$	247,974	$	—	$	4,217,231
Expenditures for segment assets	$	13,115	$	—	$	—	$	13,115

	Three Months Ended June 30, 2021
	Real Estate		Observatory		Intersegment Elimination		Total
Revenues:
Rental revenue	$	140,797	$	—	$	—	$	140,797
Intercompany rental revenue	6,029		—		(6,029)		—
Observatory revenue	—		8,359		—		8,359
Lease termination fees	3,339		—		—		3,339
Third-party management and other fees	327		—		—		327
Other revenue and fees	586		—		—		586
Total revenues	151,078		8,359		(6,029)		153,408
Operating expenses:
Property operating expenses	28,793		—		—		28,793
Intercompany rent expense	—		6,029		(6,029)		—
Ground rent expense	2,332		—		—		2,332
General and administrative expenses	14,089		—		—		14,089
Observatory expenses	—		5,268		—		5,268
Real estate taxes	31,354		—		—		31,354
Depreciation and amortization	45,066		22		—		45,088
Total operating expenses	121,634		11,319		(6,029)		126,924
Total operating income (loss)	29,444		(2,960)		—		26,484
Other income (expense):
Interest income	163		1		—		164
Interest expense	(23,422)		—		—		(23,422)
Income (loss) before income taxes	6,185		(2,959)		—		3,226
Income tax (expense) benefit	(135)		1,320		—		1,185
Net income (loss)	$	6,050	$	(1,639)	$	—	$	4,411
Segment assets	$	3,880,853	$	242,619	$	—	$	4,123,472
Expenditures for segment assets	$	19,975	$	—	$	—	$	19,975

	Six Months Ended June 30, 2022
	Real Estate		Observatory		Intersegment Elimination		Total
Revenues:
Rental revenue	$	296,853	$	—	$	—	$	296,853
Intercompany rental revenue	27,729		—		(27,729)		—
Observatory revenue	—		40,609		—		40,609
Lease termination fees	20,032		—		—		20,032
Third-party management and other fees	636		—		—		636
Other revenue and fees	3,926		—		—		3,926
Total revenues	349,176		40,609		(27,729)		362,056
Operating expenses:
Property operating expenses	76,077		—		—		76,077
Intercompany rent expense	—		27,729		(27,729)		—
Ground rent expense	4,663		—		—		4,663
General and administrative expenses	29,562		—		—		29,562
Observatory expenses	—		13,991		—		13,991
Real estate taxes	59,806		—		—		59,806
Depreciation and amortization	125,325		85		—		125,410
Total operating expenses	295,433		41,805		(27,729)		309,509
Total operating income (loss)	53,743		(1,196)		—		52,547
Other income (expense):
Interest income	575		5		—		580
Interest expense	(50,056)		—		—		(50,056)
Gain on disposition of property	27,170		—		—		27,170
Income (loss) before income taxes	31,432		(1,191)		—		30,241
Income tax (expense) benefit	(182)		1,415		—		1,233
Net income	$	31,250	$	224	$	—	$	31,474
Expenditures for segment assets	$	51,999	$	291	$	—	$	52,290

	Six Months Ended June 30, 2021
	Real Estate		Observatory		Intersegment Elimination		Total
Revenues:
Rental revenue	$	281,028	$	—	$	—	$	281,028
Intercompany rental revenue	10,961		—		(10,961)		—
Observatory revenue	—		10,962		—		10,962
Lease termination fees	4,628		—		—		4,628
Third-party management and other fees	603		—		—		603
Other revenue and fees	1,491		—		—		1,491
Total revenues	298,711		10,962		(10,961)		298,712
Operating expenses:
Property operating expenses	59,072		—		—		59,072
Intercompany rent expense	—		10,961		(10,961)		—
Ground rent expense	4,663		—		—		4,663
General and administrative expenses	27,942		—		—		27,942
Observatory expenses	—		9,856		—		9,856
Real estate taxes	62,801		—		—		62,801
Depreciation and amortization	89,485		60		—		89,545
Total operating expenses	243,963		20,877		(10,961)		253,879
Total operating income (loss)	54,748		(9,915)		—		44,833
Other income (expense):
Interest income	283		3		—		286
Interest expense	(46,976)		—		—		(46,976)
Loss on early extinguishment of debt	(214)		—		—		(214)
Income (loss) before income taxes	7,841		(9,912)		—		(2,071)
Income tax (expense) benefit	(418)		3,709		—		3,291
Net income (loss)	$	7,423	$	(6,203)	$	—	$	1,220
Expenditures for segment assets	$	43,307	$	4	$	—	$	43,311

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Description of Business and Organization (Details) ft² in Millions	6 Months Ended
	Jun. 30, 2022 ft² office_property parcel multifamily_property property_unit
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Area of real estate property (in square feet)	9.9
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)	59.50%
Office Building
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Area of real estate property (in square feet)	9.2
Number of offices and properties | office_property	13
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 offices and properties | office_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)	1.6
Number of offices and properties | office_property	4
Long-term ground leasehold interests
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Number of offices and 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 offices and properties | office_property	4
Retail Site | Westport, Connecticut
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Number of offices and properties | office_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
Multifamily
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Number of offices and properties | multifamily_property	2
Number of property units | property_unit	625

XML

Summary of Significant Accounting Policies (Details)	Jun. 30, 2022
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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Property Disposition (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Apr. 30, 2022	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Discontinued Operations and Disposal Groups [Abstract]
Mortgage notes payable, net	$ 30,000	$ 916,657		$ 916,657		$ 948,769
Gain on disposition of property	$ 27,200	$ 27,170	$ 0	$ 27,170	$ 0
Impairment charges						$ 7,700

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Deferred Costs, Acquired Lease Intangibles and Goodwill - Deferred Costs, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Leasing costs	$ 217,415	$ 211,189
Total deferred costs, gross amount	405,708	410,969
Less: accumulated amortization	(218,336)	(215,764)
Total deferred costs, net, excluding net deferred financing costs	187,372	195,205
Acquired in-place lease value and deferred leasing costs
Finite-Lived Intangible Assets [Line Items]
Acquired finite-lived intangible assets	158,874	166,491
Acquired above-market leases
Finite-Lived Intangible Assets [Line Items]
Acquired finite-lived intangible assets	$ 29,419	$ 33,289

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Deferred Costs, Acquired Lease Intangibles and Goodwill - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021	Jun. 30, 2020
Deferred Costs [Line Items]
Amortization expense related to deferred leasing costs and acquired deferred leasing costs	$ 7,300	$ 6,100	$ 14,300	$ 11,700
Rental revenue related to the amortization of below-market leases, net of above-market leases	1,700	700	3,459	1,371
Goodwill	491,479		491,479		$ 491,479
Observatory
Deferred Costs [Line Items]
Fair value in excess of carrying value (less than) (as a percent)						15.00%
Observatory
Deferred Costs [Line Items]
Goodwill	227,500		227,500
Real estate
Deferred Costs [Line Items]
Goodwill	264,000		264,000
Lease agreements
Deferred Costs [Line Items]
Amortization expense related to acquired lease intangibles	4,100	$ 1,600	8,300	$ 3,300
Unsecured revolving credit facility | Revolving credit facility
Deferred Costs [Line Items]
Net deferred financing costs	$ 6,100		$ 6,100		$ 7,200

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Deferred Costs, Acquired Lease Intangibles and Goodwill - Amortizing Acquired Intangible Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Acquired below-market ground leases, net
Acquired below-market ground leases	$ 396,916	$ 396,916
Less: accumulated amortization	(63,928)	(60,012)
Acquired below-market ground leases, net	332,988	336,904
Acquired below-market leases, net
Acquired below-market leases	(64,635)	(65,403)
Less: accumulated amortization	44,457	40,462
Acquired below-market leases, net	$ (20,178)	$ (24,941)

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Debt - Long-Term Debt (Details) - USD ($)	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Outstanding borrowings	$ 0	$ 0
Total principal	2,300,131,000
Deferred financing costs, net	(19,338,000)	(22,112,000)
Mortgages, senior notes, and unsecured term loan facilities, not including unsecured revolving credit facility
Debt Instrument [Line Items]
Total principal	2,300,131,000	2,333,793,000
Deferred financing costs, net	(13,277,000)	(14,881,000)
Unamortized debt discount	(8,135,000)	(8,547,000)
Total	2,278,719,000	2,310,365,000
Metro Center | Fixed rate mortgage debt
Debt Instrument [Line Items]
Fixed rate mortgage debt	$ 83,824,000	85,032,000
Stated Rate (as a percent)	3.59%
Effective Rate (as a percent)	3.67%
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)	4.73%
First Stamford Place - First Lien | Fixed rate mortgage debt
Debt Instrument [Line Items]
Stated Rate (as a percent)	4.09%
Face amount of debt instrument	$ 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 of debt instrument	$ 16,000,000
1010 Third Avenue and 77 West 55th Street | Fixed rate mortgage debt
Debt Instrument [Line Items]
Fixed rate mortgage debt	$ 36,255,000	36,670,000
Stated Rate (as a percent)	4.01%
Effective Rate (as a percent)	4.21%
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)	3.21%
10 Bank Street | Fixed rate mortgage debt
Debt Instrument [Line Items]
Fixed rate mortgage debt	$ 30,609,000	31,091,000
Stated Rate (as a percent)	4.23%
Effective Rate (as a percent)	4.37%
383 Main Avenue | Fixed rate mortgage debt
Debt Instrument [Line Items]
Fixed rate mortgage debt	$ 0	30,000,000
Stated Rate (as a percent)	0.00%
Effective Rate (as a percent)	0.00%
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%
345 East 94th Street - Series A | Revolving credit facility | LIBOR
Debt Instrument [Line Items]
Variable rate, effective percentage (as a percent)	70.00%
Basis spread on variable rate (as a percent)	0.95%
345 East 94th Street - Series A | Fixed rate mortgage debt
Debt Instrument [Line Items]
Fixed rate mortgage debt	$ 43,600,000	43,600,000
Effective Rate (as a percent)	3.56%
345 East 94th Street - Series B | Revolving credit facility | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	2.24%
345 East 94th Street - Series B | Fixed rate mortgage debt
Debt Instrument [Line Items]
Fixed rate mortgage debt	$ 8,173,000	8,650,000
Effective Rate (as a percent)	3.56%
561 10th Avenue - Series A | Revolving credit facility | LIBOR
Debt Instrument [Line Items]
Variable rate, effective percentage (as a percent)	70.00%
Basis spread on variable rate (as a percent)	1.07%
561 10th Avenue - Series A | Fixed rate mortgage debt
Debt Instrument [Line Items]
Fixed rate mortgage debt	$ 114,500,000	114,500,000
Effective Rate (as a percent)	3.85%
561 10th Avenue - Series B | Revolving credit facility | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	2.45%
561 10th Avenue - Series B | Fixed rate mortgage debt
Debt Instrument [Line Items]
Fixed rate mortgage debt	$ 18,170,000	19,250,000
Effective Rate (as a percent)	3.85%
Total mortgage debt | Fixed rate mortgage debt
Debt Instrument [Line Items]
Fixed rate mortgage debt	$ 935,131,000	968,793,000
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%
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%
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%
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%
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%
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%
Series G | Senior unsecured notes
Debt Instrument [Line Items]
Total	$ 100,000,000	100,000,000
Stated Rate (as a percent)	3.61%
Effective Rate (as a percent)	4.89%
Series H | Senior unsecured notes
Debt Instrument [Line Items]
Total	$ 75,000,000	75,000,000
Stated Rate (as a percent)	3.73%
Effective Rate (as a percent)	5.00%
Unsecured term loan facilities | Revolving credit facility
Debt Instrument [Line Items]
Outstanding borrowings	$ 215,000,000	215,000,000
Effective Rate (as a percent)	3.58%
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]
Outstanding borrowings	$ 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]
Outstanding borrowings	$ 175,000,000	$ 175,000,000
Effective Rate (as a percent)	4.02%
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	Jun. 30, 2022 USD ($)
Amortization
2022	$ 4,194
2023	9,632
2024	9,903
2025	7,979
2026	8,491
Thereafter	35,975
Total	76,174
Maturities
2022	0
2023	0
2024	77,675
2025	315,000
2026	225,000
Thereafter	1,606,282
Total	2,223,957
Total
2022	4,194
2023	9,632
2024	87,578
2025	322,979
2026	233,491
Thereafter	1,642,257
Total	$ 2,300,131

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Debt - Deferred Financing Costs, Net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Debt Disclosure [Abstract]
Financing costs	$ 44,065		$ 44,065		$ 44,637
Less: accumulated amortization	(24,727)		(24,727)		(22,525)
Total deferred financing costs, net	19,338		19,338		$ 22,112
Amortization related to deferred financing costs	$ 1,300	$ 1,100	$ 2,700	$ 2,300

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Debt - Unsecured Revolving Credit and Term Loan Facilities (Details) - USD ($)	Jun. 30, 2022	Dec. 31, 2021	Mar. 19, 2020
Line of Credit Facility [Line Items]
Outstanding borrowings	$ 0	$ 0
Revolving credit facility | Credit Facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity	1,065,000,000.000
Revolving credit facility | Unsecured revolving credit facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity	850,000,000
Outstanding borrowings	0	0
Revolving credit facility | Unsecured term loan facilities
Line of Credit Facility [Line Items]
Maximum borrowing capacity	215,000,000
Outstanding borrowings	215,000,000	215,000,000
Revolving credit facility | Unsecured term loan facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity			$ 175,000,000
Outstanding borrowings	$ 175,000,000	$ 175,000,000
Accordion feature, new maximum borrowing capacity			$ 225,000,000

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Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Accrued capital expenditures	$ 67,815	$ 49,247
Accounts payable and accrued expenses	35,900	41,664
Interest rate swaps liability	5,612	25,308
Accrued interest payable	3,630	3,460
Due (from) to affiliated companies	880	1,131
Total accounts payable and accrued expenses	$ 113,837	$ 120,810

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Financial Instruments and Fair Values - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Aug. 22, 2022	May 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swaps liability	$ (5,612,000)		$ (5,612,000)				$ (25,308,000)
Forecast | Unsecured term loan facility | Term Loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Percentage of debt bearing fixed interest					100.00%
Interest rate swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Aggregate notional value						$ 390,000,000
Notional amount of expiring derivative						$ 265,000,000
Interest rate swaps liability	(6,100,000)		(6,100,000)
Interest rate swap | Designated as hedging instrument | Cash flow hedging
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Aggregate notional value	841,300,000		841,300,000				451,300,000
Net unrealized gain (loss)	12,800,000	$ 2,800,000	25,900,000	$ 5,700,000
Net loss to be reclassified into interest expense within the next 12 months			2,400,000
Interest rate swap | Designated as hedging instrument | Cash flow hedging | Prepaid assets and other expenses
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap agreement asset	4,100,000		4,100,000
Interest rate swap | Designated as hedging instrument | Cash flow hedging | Accounts payable and accrued expenses
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swaps liability	$ (5,600,000)		$ (5,600,000)				$ (25,300,000)

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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 - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Derivatives, Fair Value [Line Items]
Asset	$ 4,120	$ 13
Liability	(5,612)	(25,308)
LIBOR | Interest Rate Swap, One Month LIBOR, 2.1485%
Derivatives, Fair Value [Line Items]
Notional Amount	$ 265,000
Pay Rate	2.1485%
Asset	$ 0	0
Liability	(98)	(3,184)
LIBOR | Interest Rate Swap, One Month LIBOR, 2.5000 %, Swap Number 1
Derivatives, Fair Value [Line Items]
Notional Amount	$ 36,820
Receive Rate (as a percent)	70.00%
Pay Rate	2.50%
Asset	$ 0	0
Liability	(1,208)	(4,527)
LIBOR | Interest Rate Swap, One Month LIBOR, 2.5000 %, Swap Number 2
Derivatives, Fair Value [Line Items]
Notional Amount	$ 103,790
Receive Rate (as a percent)	70.00%
Pay Rate	2.50%
Asset	$ 0	0
Liability	(4,306)	(15,945)
LIBOR | Interest Rate Swap, One Month LIBOR, 1.7570%
Derivatives, Fair Value [Line Items]
Notional Amount	$ 10,710
Receive Rate (as a percent)	70.00%
Pay Rate	1.757%
Asset	$ 236	0
Liability		(754)
LIBOR | Interest Rate Swap, One Month LIBOR, 2.2540%
Derivatives, Fair Value [Line Items]
Notional Amount	$ 19,008
Pay Rate	2.254%
Asset	$ 492	0
Liability	0	(898)
LIBOR | Interest Rate Cap, One Month LIBOR, 4.5000%
Derivatives, Fair Value [Line Items]
Notional Amount	$ 6,780
Receive Rate (as a percent)	70.00%
Pay Rate	4.50%
Asset	$ 11	5
Liability	0	0
LIBOR | Interest Rate Cap, One Month LIBOR, 5.5000%
Derivatives, Fair Value [Line Items]
Notional Amount	$ 9,188
Pay Rate	5.50%
Asset	$ 26	8
Liability	0	0
SOFR | Interest Rate Swap, One Month SOFR, 2.5620%
Derivatives, Fair Value [Line Items]
Notional Amount	$ 175,000
Pay Rate	2.562%
Asset	$ 1,703	0
Liability	0	0
SOFR | Interest Rate Swap, One Month SOFR, 2.6260%
Derivatives, Fair Value [Line Items]
Notional Amount	$ 107,500
Pay Rate	2.626%
Asset	$ 828	0
Liability	0	0
SOFR | Interest Rate Swap, One Month SOFR, 2.6280%
Derivatives, Fair Value [Line Items]
Notional Amount	$ 107,500
Pay Rate	2.628%
Asset	$ 824	0
Liability	$ 0	$ 0

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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		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in other comprehensive income (loss)	$ 10,057	$ (95)	$ 19,819	$ (36)
Amount of loss reclassified from accumulated other comprehensive loss into interest expense	(2,741)	(2,898)	(6,036)	(5,767)
Interest expense	(25,042)	(23,422)	(50,056)	(46,976)
Interest rate swap
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in other comprehensive income (loss)	10,057	(95)	19,819	(36)
Amount of loss reclassified from accumulated other comprehensive loss into interest expense	(2,741)	(2,898)	(6,036)	(5,767)
Interest rate swap | Reclassification out of accumulated other comprehensive income | Accumulated other comprehensive income (loss)
Derivative Instruments, Gain (Loss) [Line Items]
Interest expense	$ (2,741)	$ (2,898)	$ (6,036)	$ (5,767)

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Financial Instruments and Fair Values - Summary of the Carrying and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap included in accounts payable and accrued expenses	$ 5,612	$ 25,308
Interest rate swap
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap included in accounts payable and accrued expenses	6,100
Carrying Value | Unsecured term loan facilities | Revolving credit facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	388,507	388,223
Carrying Value | Mortgage notes payable
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	916,657	948,769
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	973,555	973,373
Carrying Value | Interest rate swap
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swaps included in prepaid expenses and other assets	4,082
Interest rate swap included in accounts payable and accrued expenses	5,612	25,308
Estimated Fair Value | Unsecured term loan facilities | Revolving credit facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	390,000	390,000
Estimated Fair Value | Mortgage notes payable
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	844,706	960,933
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	906,567	994,389
Estimated Fair Value | Level 1 | Unsecured term loan facilities | Revolving credit facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	0
Estimated Fair Value | Level 1 | Mortgage notes payable
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	0
Estimated Fair Value | Level 1 | 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
Estimated Fair Value | Level 2 | Unsecured term loan facilities | Revolving credit facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	0
Estimated Fair Value | Level 2 | Mortgage notes payable
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	0
Estimated Fair Value | Level 2 | 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
Estimated Fair Value | Level 3 | Unsecured term loan facilities | Revolving credit facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	390,000	390,000
Estimated Fair Value | Level 3 | Mortgage notes payable
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	844,706	960,933
Estimated Fair Value | Level 3 | 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	906,567	994,389
Estimated Fair Value | Interest rate swap
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swaps included in prepaid expenses and other assets	4,082
Interest rate swap included in accounts payable and accrued expenses	5,612	25,308
Estimated Fair Value | Interest rate swap | Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swaps included in prepaid expenses and other assets	0
Interest rate swap included in accounts payable and accrued expenses	0	0
Estimated Fair Value | Interest rate swap | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swaps included in prepaid expenses and other assets	4,082
Interest rate swap included in accounts payable and accrued expenses	5,612	25,308
Estimated Fair Value | Interest rate swap | Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swaps included in prepaid expenses and other assets	0
Interest rate swap included in accounts payable and accrued expenses	$ 0	$ 0

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Leases - Narrative (Details) $ in Thousands	Jun. 30, 2022 USD ($) property	Dec. 31, 2021 USD ($)
Operating Leases [Line Items]
Number of properties subject to ground leases | property	3
Right-of-use assets	$ 28,781	$ 28,892
Lease liabilities	$ 28,781	$ 28,892
Weighted average discount rate (as a percent)	4.50%
Weighted average remaining lease term (in years)	47 years 10 months 24 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		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Leases [Abstract]
Fixed payments	$ 134,794	$ 124,432	$ 268,195	$ 250,204
Variable payments	14,545	16,365	28,658	30,824
Total rental revenue	$ 149,339	$ 140,797	$ 296,853	$ 281,028

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Leases - Future Contractual Minimum Lease Payments On Non-Cancellable Operating Leases To Be Received (Details) $ in Thousands	Jun. 30, 2022 USD ($)
Leases [Abstract]
Remainder of 2022	$ 244,025
2023	495,765
2024	473,800
2025	437,398
2026	396,072
Thereafter	1,853,731
Total future minimum lease payments on non-cancellable operating leases to be received	$ 3,900,791

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Leases - Future Minimum Lease Payments on Ground Leases (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Leases [Abstract]
Remainder of 2022	$ 759
2023	1,518
2024	1,518
2025	1,518
2026	1,518
Thereafter	63,744
Total undiscounted cash flows	70,575
Present value discount	(41,794)
Ground lease liabilities	$ 28,781	$ 28,892

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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	Jun. 30, 2022 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Estimated capital expenditures to be incurred	$ 105.3

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Equity - Shares and Units (Details)	6 Months Ended
	Jun. 30, 2022 USD ($) shares	Dec. 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
LTIP unit, share of stock equivalent (in shares)	1
Conversion rate tor LTIP units to OP units	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%
Stock repurchase authorized amount | $	$ 500,000,000
Class A Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock outstanding (in shares)	162,689,535
Common stock outstanding (in shares)	162,690,000	169,221,000
Class B Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock outstanding (in shares)	994,252	996,000
Empire state realty trust
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
OP units owned by the Company (in shares)	163,683,787
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)	111,420,579
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)	59.50%
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)	40.50%
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		11,000,000

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Equity - Equity Securities Repurchased (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended
	Jun. 30, 2022	May 31, 2022	Apr. 30, 2022
Equity [Abstract]
Total Number of Shares Purchased (in shares)	3,252,202	1,050,731	2,308,026
Weighted Average Price Paid per Share (in USD per share)	$ 7.16	$ 8.09	$ 8.95
Maximum Approximate Dollar Value Available for Future Purchase	$ 435,560	$ 458,849	$ 467,350

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Equity - Private Perpetual Preferred Units (Details) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Preferred Units [Line Items]
Dividends per share (in USD per share)	$ 0.035	$ 0.035	$ 0.070	$ 0.035
Private Perpetual Preferred Units, Series 2019
Preferred Units [Line Items]
Private perpetual preferred units issued (in shares)	4,664,038		4,664,038		4,664,000
Private perpetual preferred units, per unit liquidation preference (in USD per share)	$ 13.52		$ 13.52		$ 13.52
Cumulative preferential annual cash distributions (in USD per share)	$ 0.70		$ 0.70
Private Perpetual Preferred Units, Series 2014
Preferred Units [Line Items]
Private perpetual preferred units issued (in shares)	1,560,000		1,560,000		1,560,000
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		$ 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		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Equity [Abstract]
Dividends paid to common shareholders	$ 5,800	$ 6,100	$ 11,750	$ 6,063
Distributions paid to OP unitholders	3,900	3,400	7,700	3,400
Private perpetual preferred unit distributions	$ 1,100	$ 1,100	$ 2,101	$ 2,101

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Equity - Incentive and Share-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	May 16, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average per unit or share fair value (in USD per share)			$ 7.21
Performance period (in years)			10 years
Granted In 2020 And After
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Retirement age (in years)			65 years
Granted Before 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Retirement age (in years)			60 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
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
Tranche two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting rights (as a percent)			40.00%
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	$ 600	$ 400	$ 1,600	$ 1,400
Unrecognized compensation expense	1,500		$ 1,500
Unrecognized compensation expense, period for recognition (in years)			3 years 7 months 6 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	5,400	$ 4,800	$ 8,900	$ 8,600
Unrecognized compensation expense	$ 35,100		$ 35,100
Unrecognized compensation expense, period for recognition (in years)			2 years 9 months 18 days
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			$ 22,400
Weighted-average per unit or share fair value (in USD per share)			$ 7.21
Dividend rate (as a percent)			2.00%
Risk-free interest rate, minimum (as a percent)			1.40%
Risk free interest rate, maximum (as a percent)			2.00%
Expected price volatility, minimum (as a percent)			37.00%
Expected price volatility, maximum (as a percent)			53.00%
Long-Term Incentive Plan Unit and Restricted Stock | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)			2 years
Long-Term Incentive Plan Unit and Restricted Stock | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)			5 years 3 months 18 days
Time-based LTIPs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)			1,514,434
Threshold of continuous service for retirement eligibility (in years)			10 years
Time-based LTIPs | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)			3 years
Time-based LTIPs | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)			5 years
Time-based LTIPs | Median
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)			4 years
Market-based LTIPs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)			780,155
Market-based LTIPs | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)			3 years
Market-based LTIPs | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)			4 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		11,000,000		11,000,000
Number of shares that remain available for future issuance (in shares)	5,900,000		5,900,000
2019 Plan | Time-based LTIPs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)			51,284
Fair value of share-based awards granted in period			$ 300
2019 Plan | Time-based LTIPs | Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual base retainer	$ 200		$ 200
Award vesting percentage of award face amount (as a percent)	120.00%		120.00%
Granted (in shares)			142,358
Fair value of share-based awards granted in period			$ 1,100
2019 Plan | Time-based LTIPs | Director | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)			3 years
2019 Plan | Time-based LTIPs | Director | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)			4 years
2019 Plan | Time-based LTIPs | Director | Tranche one
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting rights (as a percent)			60.00%
Award vesting period (in years)			4 years
2019 Plan | Time-based LTIPs | Director | Tranche two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)			3 years

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Equity - Summary of Restricted Stock and LTIP Unit Activity (Details)	6 Months Ended
	Jun. 30, 2022 $ / shares shares
Weighted Average Grant Fair Value
Beginning balance, Unvested (in USD per share) | $ / shares	$ 7.02
Vested (in USD per share) | $ / shares	9.95
Granted (in USD per share) | $ / shares	7.21
Forfeited or unearned (in USD per share) | $ / shares	7.20
Ending balance, Unvested (in USD per share) | $ / shares	$ 6.67
Restricted Stock
Restricted Stock and LTIP Units
Beginning balance, Unvested (in shares)	214,408
Vested (in shares)	(67,654)
Granted (in shares)	232,448
Forfeited or unearned (in shares)	(9,874)
Ending balance, Unvested (in shares)	369,328
Time-based LTIPs
Restricted Stock and LTIP Units
Beginning balance, Unvested (in shares)	2,499,592
Vested (in shares)	(1,052,119)
Granted (in shares)	1,514,434
Forfeited or unearned (in shares)	0
Ending balance, Unvested (in shares)	2,961,907
Market-based LTIPs
Restricted Stock and LTIP Units
Beginning balance, Unvested (in shares)	5,039,134
Vested (in shares)	0
Granted (in shares)	780,155
Forfeited or unearned (in shares)	(1,311,839)
Ending balance, Unvested (in shares)	4,507,450
Performance-based LTIPs
Restricted Stock and LTIP Units
Beginning balance, Unvested (in shares)	0
Vested (in shares)
Granted (in shares)	578,943
Forfeited or unearned (in shares)	0
Ending balance, Unvested (in shares)	578,943

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Equity - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Numerator - Basic:
Net income	$ 48,695	$ 4,411	$ 31,474	$ 1,220
Private perpetual preferred unit distributions	(1,051)	(1,051)	(2,101)	(2,101)
Net (income) loss attributable to non-controlling interests	(18,065)	(1,285)	(11,083)	335
Earnings allocated to unvested shares	(64)	(9)	(71)	(9)
Net income (loss) attributable to common stockholders – basic	29,515	2,066	18,219	(555)
Numerator - Diluted:
Net income	48,695	4,411	31,474	1,220
Private perpetual preferred unit distributions	(1,051)	(1,051)	(2,101)	(2,101)
Net loss attributable to non-controlling interests in other partnerships	159	0	222	0
Earnings allocated to unvested shares	(64)	(9)	(71)	(9)
Net income (loss) attributable to common stockholders – diluted	$ 47,739	$ 3,351	$ 29,524	$ (890)
Denominator:
Weighted average shares outstanding - basic (in shares)	167,118	171,615	168,099	172,183
Operating partnership units (in shares)	102,960	106,278	103,735	105,704
Effect of dilutive securities:
Stock-based compensation plans (in shares)	7	543	3	0
Weighted average shares outstanding - diluted (in shares)	270,085	278,436	271,837	277,887
Earnings per share:
Basic (in USD per share)	$ 0.18	$ 0.01	$ 0.11	$ (0.00)
Diluted (in USD per share)	$ 0.18	$ 0.01	$ 0.11	$ (0.00)
Antidilutive securities (in shares)	603	1,051	398	955

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Related Party Transactions (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($) ft² property	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) ft² property	Jun. 30, 2021 USD ($)
Related Party Transaction [Line Items]
Area of real estate property (in square feet) | ft²	9,900,000		9,900,000
Affiliated entities | Supervisory fee revenue
Related Party Transaction [Line Items]
Revenue from related parties	$ 0.3	$ 0.3	$ 0.5	$ 0.5
Affiliated entities | Property management fee revenue
Related Party Transaction [Line Items]
Revenue from related parties	0.1	0.1	0.1	0.1
Affiliated entities | Leased space rental
Related Party Transaction [Line Items]
Revenue from related parties	$ 0.1	$ 0.1	$ 0.2	$ 0.2
Number of properties | property	1		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		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)	6 Months Ended
	Jun. 30, 2022 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	1 Months Ended	3 Months Ended		6 Months Ended
	Apr. 30, 2022	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Revenues:
Rental revenue		$ 149,339	$ 140,797	$ 296,853	$ 281,028
Intercompany rental revenue		0	0	0	0
Observatory revenue		27,368	8,359	40,609	10,962
Lease termination fees		18,859	3,339	20,032	4,628
Third-party management and other fees		326	327	636	603
Other revenue and fees		2,130	586	3,926	1,491
Total revenues		198,022	153,408	362,056	298,712
Operating expenses:
Property operating expenses		37,433	28,793	76,077	59,072
Intercompany rent expense		0	0	0	0
Ground rent expense		2,332	2,332	4,663	4,663
General and administrative expenses		15,876	14,089	29,562	27,942
Observatory expenses		7,776	5,268	13,991	9,856
Real estate taxes		29,802	31,354	59,806	62,801
Depreciation and amortization		58,304	45,088	125,410	89,545
Total operating expenses		151,523	126,924	309,509	253,879
Total operating income (loss)		46,499	26,484	52,547	44,833
Other income (expense):
Interest income		431	164	580	286
Interest expense		(25,042)	(23,422)	(50,056)	(46,976)
Loss on early extinguishment of debt		0	0	0	(214)
Gain on disposition of property	$ 27,200	27,170	0	27,170	0
Income before income taxes		49,058	3,226	30,241	(2,071)
Income tax (expense) benefit		(363)	1,185	1,233	3,291
Net income		48,695	4,411	31,474	1,220
Segment assets		4,217,231	4,123,472	4,217,231	4,123,472	$ 4,282,447
Expenditures for segment assets		13,115	19,975	52,290	43,311
Intersegment Elimination
Revenues:
Rental revenue		0	0	0	0
Intercompany rental revenue		(17,109)	(6,029)	(27,729)	(10,961)
Observatory revenue		0	0	0	0
Lease termination fees		0	0	0	0
Third-party management and other fees		0	0	0	0
Other revenue and fees		0	0	0	0
Total revenues		(17,109)	(6,029)	(27,729)	(10,961)
Operating expenses:
Property operating expenses		0	0	0	0
Intercompany rent expense		(17,109)	(6,029)	(27,729)	(10,961)
Ground rent expense		0	0	0	0
General and administrative expenses		0	0	0	0
Observatory expenses		0	0	0	0
Real estate taxes		0	0	0	0
Depreciation and amortization		0	0	0	0
Total operating expenses		(17,109)	(6,029)	(27,729)	(10,961)
Total operating income (loss)		0	0	0	0
Other income (expense):
Interest income		0	0	0	0
Interest expense		0	0	0	0
Loss on early extinguishment of debt					0
Gain on disposition of property		0		0
Income before income taxes		0	0	0	0
Income tax (expense) benefit		0	0	0	0
Net income		0	0	0	0
Segment assets		0	0	0	0
Expenditures for segment assets		0	0	0	0
Real Estate | Operating Segments
Revenues:
Rental revenue		149,339	140,797	296,853	281,028
Intercompany rental revenue		17,109	6,029	27,729	10,961
Observatory revenue		0	0	0	0
Lease termination fees		18,859	3,339	20,032	4,628
Third-party management and other fees		326	327	636	603
Other revenue and fees		2,130	586	3,926	1,491
Total revenues		187,763	151,078	349,176	298,711
Operating expenses:
Property operating expenses		37,433	28,793	76,077	59,072
Intercompany rent expense		0	0	0	0
Ground rent expense		2,332	2,332	4,663	4,663
General and administrative expenses		15,876	14,089	29,562	27,942
Observatory expenses		0	0	0	0
Real estate taxes		29,802	31,354	59,806	62,801
Depreciation and amortization		58,254	45,066	125,325	89,485
Total operating expenses		143,697	121,634	295,433	243,963
Total operating income (loss)		44,066	29,444	53,743	54,748
Other income (expense):
Interest income		426	163	575	283
Interest expense		(25,042)	(23,422)	(50,056)	(46,976)
Loss on early extinguishment of debt					(214)
Gain on disposition of property		27,170		27,170
Income before income taxes		46,620	6,185	31,432	7,841
Income tax (expense) benefit		(38)	(135)	(182)	(418)
Net income		46,582	6,050	31,250	7,423
Segment assets		3,969,257	3,880,853	3,969,257	3,880,853
Expenditures for segment assets		13,115	19,975	51,999	43,307
Observatory | Operating Segments
Revenues:
Rental revenue		0	0	0	0
Intercompany rental revenue		0	0	0	0
Observatory revenue		27,368	8,359	40,609	10,962
Lease termination fees		0	0	0	0
Third-party management and other fees		0	0	0	0
Other revenue and fees		0	0	0	0
Total revenues		27,368	8,359	40,609	10,962
Operating expenses:
Property operating expenses		0	0	0	0
Intercompany rent expense		17,109	6,029	27,729	10,961
Ground rent expense		0	0	0	0
General and administrative expenses		0	0	0	0
Observatory expenses		7,776	5,268	13,991	9,856
Real estate taxes		0	0	0	0
Depreciation and amortization		50	22	85	60
Total operating expenses		24,935	11,319	41,805	20,877
Total operating income (loss)		2,433	(2,960)	(1,196)	(9,915)
Other income (expense):
Interest income		5	1	5	3
Interest expense		0	0	0	0
Loss on early extinguishment of debt					0
Gain on disposition of property		0		0
Income before income taxes		2,438	(2,959)	(1,191)	(9,912)
Income tax (expense) benefit		(325)	1,320	1,415	3,709
Net income		2,113	(1,639)	224	(6,203)
Segment assets		247,974	242,619	247,974	242,619
Expenditures for segment assets		$ 0	$ 0	$ 291	$ 4