Empire State Realty Trust (ESRT) Citi’s 30th Annual Global Property CEO Conference 2025 summary

Strategic priorities and portfolio performance

• Achieved over 94% leasing in Manhattan office portfolio, with 1.3 million sq ft leased in 2024 and expectations for further gains in 2025.

• Observatory ranked number one globally, with 6% NOI growth and above-2019 net operating income levels.

• Maintains a strong balance sheet, enabling opportunistic leasing and asset recycling, shifting from suburban office to multifamily and prime retail.

• Focused on sustainability, reducing energy consumption by 40% portfolio-wide and earning top GRESB ratings.

• Diversified New York City-focused strategy across office, multifamily, retail, and observatory enhances cash flow resiliency.

Market dynamics and leasing trends

• New York City remains a top destination for talent, driving office demand and supporting vibrant street retail.

• Leasing activity is robust, with tenants expanding and high retention; rents are rising, especially in well-located, modernized buildings.

• Market is bifurcated between 'haves' (modern, amenitized, well-located) and 'have-nots,' with the former commanding higher rents and occupancy.

• No negative impact from congestion pricing on office attendance; office utilization continues to improve.

Growth opportunities and capital allocation

• Recent acquisitions in Williamsburg and multifamily were driven by capital recycling from suburban office exits.

• No immediate plans for further expansion in Williamsburg; focus remains on value creation and mark-to-market rent potential above 20%.

• Actively underwriting new opportunities, including office redevelopments and potential joint ventures, with willingness to increase leverage for the right deal.

• Suburban asset Metro Center is on the market for exit, reinforcing the New York City focus.