Form 8-K
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM
8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 19, 2020
 
EMPIRE STATE REALTY TRUST, INC.
(Exact Name of Registrant as Specified in its Charter)
 
         
Maryland
 
001-36105
 
37-1645259
(State or other Jurisdiction
of Incorporation)
 
(Commission
File Number)
 
(I.R.S. Employer
Identification No.)
 
 
EMPIRE STATE REALTY OP, L.P.
(Exact Name of Registrant as Specified in its Charter)
 
         
Delaware
 
001-36106
 
45-4685158
(State or other Jurisdiction
of Incorporation)
 
(Commission
File Number)
 
(I.R.S. Employer
Identification No.)
     
111 West 33
rd
Street
, 12
th
Floor
New York, New York
 
10120
(Address of Principal Executive Offices)
 
(Zip Code)
 
Registrant’s telephone number, including area code: (212)
687-8700
n/a
(Former name or former address, if changed from last report)
 
Check the appropriate box below if the Form
8-K
filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
Soliciting material pursuant to Rule
14a-12
under the Exchange Act (17 CFR
240.14a-12)
 
Pre-commencement
communications pursuant to Rule
14d-2(b)
under the Exchange Act (17 CFR
240.14d-2(b))
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
         
Title of each class
 
Trading
Symbol(s)
 
Name of each exchange 
on which registered
Empire State Realty Trust, Inc.
 
 
Class A Common Stock, par value $0.01 per share
 
ESRT
 
The New York Stock Exchange
Empire State Realty OP, L.P.
 
 
Series ES Operating Partnership Units
 
ESBA
 
NYSE Arca, Inc.
Series 60 Operating Partnership Units
 
OGCP
 
NYSE Arca, Inc.
Series 250 Operating Partnership Units
 
FISK
 
NYSE Arca, Inc.
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule
12b-2
of the Securities Exchange Act of 1934 (§
240.12b-2
of this chapter).
Emerging growth company  
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  
 
 

Item 2.02. Results of Operations and Financial Condition.
On February 19, 2020, Empire State Realty Trust, Inc. (the “Company” or “we”) issued a press release announcing its financial results for the fourth quarter 2019. The press release referred to certain supplemental information that is available on the Company’s website. The press release and the supplemental information are attached hereto as Exhibits 99.1 and 99.2, respectively, and are incorporated by reference herein.
The information in Item 2.02 of this Current Report, including Exhibits 99.1 and 99.2, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. Such information shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, unless it is specifically incorporated by reference therein. 
Item 7.01. Regulation FD Disclosure
As discussed in Item 2.02 above, the Company issued a press release regarding its financial results for the fourth quarter 2019 and made available on its website certain supplemental information relating thereto.
The information in Item 7.01 of this Current Report is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that Section. Such information shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act or the Exchange Act, unless it is specifically incorporated by reference therein.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
     
Exhibit No.
 
Description
 
 
 
99.1
 
 
 
 
99.2
 
 
 
 
104
 
Cover Page Interactive File (the cover page tags are embedded within the Inline XBRL document).
Non-GAAP
Supplemental Financial Measures
Funds From Operations (“FFO”)
We compute FFO in accordance with the “White Paper” on FFO published by the National Association of Real Estate Investment Trusts, or NAREIT, which defines FFO as net income (loss) (determined in accordance with GAAP), excluding impairment writedowns of investments in depreciable real estate and investments in
in-substance
real estate investments, gains or losses from debt restructurings and sales of depreciable operating properties, plus real estate-related depreciation and amortization (excluding amortization of deferred financing costs), less distributions to
non-controlling
interests and gains/losses from
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discontinued operations and after adjustments for unconsolidated partnerships and joint ventures. FFO is a widely recognized
non-GAAP
financial measure for REITs that we believe, when considered with financial statements determined in accordance with GAAP, is useful to investors in understanding financial performance and providing a relevant basis for comparison among REITs. In addition, FFO is useful to investors as it captures features particular to real estate performance by recognizing that real estate has generally appreciated over time or maintains residual value to a much greater extent than do other depreciable assets. Investors should review FFO, along with GAAP net income, when trying to understand an equity REIT’s operating performance. We present FFO because we consider it an important supplemental measure of our operating performance and believe that it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs. However, because FFO excludes depreciation and amortization and captures neither the changes in the value of our properties that result from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effect and could materially impact our results of operations, the utility of FFO as a measure of performance is limited. There can be no assurance that FFO presented by us is comparable to similarly titled measures of other REITs. FFO does not represent cash generated from operating activities and should not be considered as an alternative to net income (loss) determined in accordance with GAAP or to cash flow from operating activities determined in accordance with GAAP. FFO is not indicative of cash available to fund ongoing cash needs, including the ability to make cash distributions. Although FFO is a measure used for comparability in assessing the performance of REITs, as the NAREIT White Paper only provides guidelines for computing FFO, the computation of FFO may vary from one company to another.
Modified Funds From Operations (“Modified FFO”)
Modified FFO adds back an adjustment for any above or below-market ground lease amortization to traditionally defined FFO. We consider this a useful supplemental measure in evaluating our operating performance due to the
non-cash
accounting treatment under GAAP, which stems from the third quarter 2014 acquisition of two option properties following our formation transactions as they carry significantly below market ground leases, the amortization of which is material to our overall results. We present Modified FFO because we consider it an important supplemental measure of our operating performance in that it adds back the
non-cash
amortization of below-market ground leases. There can be no assurance that Modified FFO presented by us is comparable to similarly titled measures of other REITs. Modified FFO does not represent cash generated from operating activities and should not be considered as an alternative to net income (loss) determined in accordance with GAAP or to cash flow from operating activities determined in accordance with GAAP. Modified FFO is not indicative of cash available to fund ongoing cash needs, including the ability to make cash distributions.
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Core Funds From Operations (“Core FFO”)
Core FFO adds back to Modified FFO the following items: acquisition expenses, deferred tax asset
write-off
and loss on early extinguishment of debt. The Company presents Core FFO because it considers it an important supplemental measure of its operating performance in that it excludes
non-recurring
items. There can be no assurance that Core FFO presented by the Company is comparable to similarly titled measures of other REITs. Core FFO does not represent cash generated from operating activities and should not be considered as an alternative to net income (loss) determined in accordance with GAAP or to cash flow from operating activities determined in accordance with GAAP. Core FFO is not indicative of cash available to fund ongoing cash needs, including the ability to make cash distributions. In future periods, we may also exclude other items from Core FFO that we believe may help investors compare our results.
Core Funds Available for Distribution (“Core FAD”)
In addition to Core FFO, we present Core FAD by (i) adding to Core FFO
non-real
estate depreciation and amortization, the amortization of deferred financing costs, amortization of debt discounts and
non-cash
compensation expense and (ii) deducting straight line rent, recurring second generation leasing commissions, tenant improvements, prebuilts, capital expenditures, furniture, fixtures & equipment purchases, amortization of debt premiums and above/below market rent revenue. Core FAD is presented solely as a supplemental disclosure that management believes provides useful information regarding our ability to fund our dividends. Core FAD does not represent cash generated from operating activities and should not be considered as an alternative to net income (loss) determined in accordance with GAAP or to cash flow from operating activities determined in accordance with GAAP. Core FAD is not indicative of cash available to fund ongoing cash needs, including the ability to make cash distributions. There can be no assurance that Core FAD presented by us is comparable to similarly titled measures of other REITs.
Net Operating Income (“NOI”)
NOI is a
non-GAAP
financial measure of performance. NOI is used by our management to evaluate and compare the performance of our properties and to determine trends in earnings and to compute the fair value of our properties as it is not affected by: (i) the cost of funds of the property owner, (ii) the impact of depreciation and amortization expenses as well as gains or losses from the sale of operating real estate assets that are included in net income computed in accordance with GAAP, (iii) acquisition expenses, loss on early extinguishment of debt and loss from derivative financial instruments, or (iv) general and administrative expenses and other gains and losses that are specific to the property owner. The cost of funds is eliminated from NOI because it is specific to the particular financing capabilities and constraints of the owner. The cost of funds is eliminated because it is dependent on historical interest rates and other costs of capital as well as past decisions made by us regarding the appropriate mix of capital which may have changed or may change in the future. Depreciation and amortization expenses as well as gains or losses from the sale of operating real estate assets are eliminated because they may not accurately represent the actual change in value in our office or retail properties that result from use of the properties or changes in market conditions. While
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certain aspects of real property do decline in value over time in a manner that is reasonably captured by depreciation and amortization, the value of the properties as a whole have historically increased or decreased as a result of changes in overall economic conditions instead of from actual use of the property or the passage of time. Gains and losses from the sale of real property vary from property to property and are affected by market conditions at the time of sale which will usually change from period to period. These gains and losses can create distortions when comparing one period to another or when comparing our operating results to the operating results of other real estate companies that have not made similarly-timed purchases or sales. We believe that eliminating these costs from net income is useful because the resulting measure captures the actual revenue, generated and actual expenses incurred in operating our properties as well as trends in occupancy rates, rental rates and operating costs. However, the usefulness of NOI is limited because it excludes general and administrative costs, interest expense, depreciation and amortization expense and gains or losses from the sale of properties, and other gains and losses as stipulated by GAAP, the level of capital expenditures and leasing costs necessary to maintain the operating performance of our properties, all of which are significant economic costs. NOI may fail to capture significant trends in these components of net income which further limits its usefulness. NOI is a measure of the operating performance of our properties but does not measure our performance as a whole. NOI is therefore not a substitute for net income as computed in accordance with GAAP. This measure should be analyzed in conjunction with net income computed in accordance with. Other companies may use different methods for calculating NOI or similarly titled measures and, accordingly, our NOI may not be comparable to similarly titled measures reported by other companies that do not define the measure exactly as we do.
EBITDA
We compute EBITDA as net income plus interest expense, income taxes and depreciation and amortization. We present EBITDA because we believe that EBITDA, along with cash flow from operating activities, investing activities and financing activities, provides investors with an additional indicator of its ability to incur and service debt. EBITDA should not be considered as an alternative to net income (determined in accordance with GAAP), as an indication of our financial performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP), or as a measure of its liquidity.
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SIGNATURE
Pursuant to the requirements of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
                 
 
 
EMPIRE STATE REALTY TRUST, INC.
(Registrant)
             
Date: February 19, 2020
 
 
By:
 
/s/ Thomas N. Keltner, Jr.
 
 
 
Name:
 
Thomas N. Keltner, Jr.
 
 
 
Title:
 
Executive Vice President, General Counsel and Secretary
 
Pursuant to the requirements of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
                 
 
 
EMPIRE STATE REALTY OP, L.P.
(Registrant)
         
 
 
By: Empire State Realty Trust, Inc., as general partner
             
Date: February 19, 2020
 
 
By:
 
/s/ Thomas N. Keltner, Jr.
 
 
 
Name:
 
Thomas N. Keltner, Jr.
 
 
 
Title:
 
Executive Vice President, General Counsel and Secretary
 
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EX-99.1
LOGO    Exhibit 99.1

EMPIRE STATE REALTY TRUST ANNOUNCES FOURTH QUARTER 2019 RESULTS

- Earnings of $0.09 Per Fully Diluted Share -

- Core FFO of $0.25 Per Fully Diluted Share -

- Leased 345,606 Square Feet of Office and Retail Space –

- Observatory Revenue Increased 9.2% to $37.7 Million –

New York, New York, February 19, 2020 - Empire State Realty Trust, Inc. (NYSE: ESRT) (the “Company”), a real estate investment trust with office and retail properties in Manhattan and the greater New York metropolitan area, today reported its operational and financial results for the fourth quarter and full year of 2019.

“We had a good quarter. We leased approximately 346,000 square feet of office and retail space, which brought our full year leasing total to over 1.3 million square feet. In aggregate for the quarter, we delivered cash rent spreads of 24.4% on new Manhattan office leases and 20.2% on all leases portfolio-wide over previous fully escalated cash rents,” stated John B. Kessler, Empire State Realty Trust’s President and Chief Operating Officer.

“Our Observatory upgrade project is now complete, visitor and industry feedback are positive, and fourth quarter results are up. For the full year, Observatory revenue adjusted for the closure of the 102nd floor observation deck increased 2.1% due to improved pricing, offset by lower visitation,” added Kessler.

Fourth Quarter Highlights

 

   

Net income attributable to common stockholders was $0.09 per fully diluted share.

 

   

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

 

   

Occupancy and leased percentages at December 31, 2019:

 

   

Total portfolio was 88.6% occupied; including Signed Leases Not Commenced (“SLNC”), the total portfolio was 91.2% leased.

 

   

Manhattan office portfolio (excluding the retail component of these properties) was 89.8% occupied; including SLNC, the Manhattan office portfolio was 92.7% leased.

 

   

Retail portfolio was 90.3% occupied; including SLNC, the retail portfolio was 93.1% leased.

 

   

Empire State Building was 94.1% occupied; including SLNC, the Empire State Building was 95.2% leased.

 

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Signed 47 leases, representing 345,606 rentable square feet across the total portfolio, and achieved a 20.2% increase in mark-to-market cash rent over previous fully escalated cash rents portfolio-wide on new, renewal, and expansion leases.

 

   

Signed 20 new leases, representing 170,247 rentable square feet for the Manhattan office portfolio (excluding the retail component of these properties), and achieved an increase of 24.4% in mark-to-market cash rent over previous fully escalated cash rents.

 

   

Empire State Building Observatory revenue for the fourth quarter 2019 increased by 9.2%, to $37.7 million, from $34.5 million in the fourth quarter 2018. Net operating income for the fourth quarter 2019 increased by 13.1%, to $29.0 million, from $25.6 million in the fourth quarter 2018.

 

   

Declared a dividend of $0.105 per share.

Full Year Highlights

 

   

Net income attributable to common stockholders was $0.28 per fully diluted share.

 

   

Core FFO was $0.90 per fully diluted share.

 

   

Signed 161 leases, representing 1,303,395 rentable square feet across the total portfolio, and achieved an 18.1% increase in mark-to-market cash rent over previous fully escalated cash rents portfolio-wide on new, renewal, and expansion leases.

 

   

Signed 76 new leases, representing 709,757 rentable square feet for the Manhattan office portfolio (excluding the retail component of these properties), and achieved an increase of 26.4% in mark-to-market cash rent over previous fully escalated cash rents.

 

   

Empire State Building Observatory revenue for the year ended 2019, adjusted for the closure of the 102nd floor observation deck increased by 2.1% to $125.2 million from $122.6 million in the year ended 2018. Net operating income for the year ended 2019, adjusted for the closure of the 102nd floor observation deck, increased by 1.7% to $91.4 million from $89.9 million in the year ended 2018. As a reminder, the 102nd floor observation deck was closed for approximately nine months in 2019 and reopened on October 12, 2019.

 

   

Declared and paid dividends of $0.42 per share during 2019.

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

 

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Portfolio Operations

As of December 31, 2019, the Company’s total portfolio contained 10.1 million rentable square feet of office and retail space. The Company’s occupancy levels fluctuate in certain periods due to the timing lag between the date of tenants’ move out and the date of Company’s completion of redevelopment work for new leases to commence. As of December 31, 2019, the Company’s portfolio was occupied and leased as shown below. Leased percentages include SLNC.

 

     December 31, 2019     September 30, 2019     December 31, 2018  

Percent occupied:

      

Total portfolio

     88.6     89.4     88.8

Total office

     88.5     89.3     88.6

Manhattan office

     89.8     89.6     88.8

Empire State Building

     94.1     93.4     93.4

Retail

     90.3     90.7     90.8

Percent leased:

      

Total portfolio

     91.2     91.7     91.8

Total office

     91.0     91.5     91.8

Manhattan office

     92.7     92.1     92.7

Empire State Building

     95.2     95.3     94.1

Retail

     93.1     94.3     91.3

Leasing

For the three months ended December 31, 2019, the Company signed 47 new, renewal, and expansion leases within the total portfolio, comprising 345,606 rentable square feet with an average starting rental rate of $65.68 per rentable square foot, representing an increase of 20.2% over the previous fully escalated cash rent.

On a blended basis, the 36 new, renewal, and expansion office leases, comprising 224,592 rentable square feet signed within the Manhattan office portfolio during the fourth quarter, had an average starting rental rate of $65.26 per rentable square foot, representing an increase of 17.5% over the previous fully escalated cash rent.

 

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Leases Signed in the Fourth Quarter 2019 for the Manhattan Office Portfolio

 

   

20 new leases, comprising 170,247 rentable square feet, with an average starting rental rate of $64.82 per rentable square foot, representing an increase of 24.4% over the previous fully escalated cash rent, and

 

   

16 renewal leases, comprising 54,345 rentable square feet, with an average starting rental rate of $66.62 per rentable square foot, representing an increase of 0.5% over the previous fully escalated cash rent.

Significant Leases Executed During the Fourth Quarter 2019

 

   

At 250 West 57th Street, the Company signed a new lease with Concord Music Group, Inc. for approximately 46,300 square feet for a term of 15.8 years.

 

   

At 1400 Broadway, the Company signed an expansion lease totaling approximately 15,100 rentable square feet with The Interpublic Group of Companies, Inc. for a term of 4.3 years.

 

   

At 10 Union Square East, the Company signed a new retail lease with Target Corporation for approximately 32,600 rentable square feet for a term of 15.8 years.

Observatory

The 102nd floor Observatory was closed for redevelopment for approximately nine months in 2019 and re-opened on October 12, 2019. The Company completed its work on the 80th floor component of its Observatory upgrade program and opened this floor on November 26, 2019. The overall Observatory upgrade program is now complete.

 

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Fourth Quarter Observatory Results

Observatory revenue for the fourth quarter 2019 increased 9.2% compared to the fourth quarter 2018 driven by improved pricing and the reopening of the 102nd floor observation deck, which was open for most of the fourth quarter 2019. The Observatory hosted approximately 894,000 visitors in the fourth quarter 2019 compared to 945,000 visitors in the fourth quarter 2018, a decrease of 5.5%. There were 22 bad weather days in the fourth quarter 2019 compared to 19 bad weather days in the fourth quarter 2018.

Year-to-Date Observatory Results

Observatory revenue for the year ended December 31, 2019 declined 1.9% compared to the year ended December 31, 2018 driven by the closure of the 102nd floor observation deck for approximately nine months as part of the Observatory upgrade program and a visitation decline, partially offset by improved pricing. As set forth in the chart below, excluding the 102nd floor revenue in each period, year-over-year revenue growth for the year ended December 31, 2019 would have increased 2.1%.

 

(dollars in thousands)    2019      2018      Percent
Change
 

Observatory revenue

   $ 128,769      $ 131,227        (1.9 %) 

Less: 102nd floor revenue

     (3,555      (8,578      —    
  

 

 

    

 

 

    

 

 

 

Observatory revenue excluding 102nd floor

   $ 125,214      $ 122,649        2.1
  

 

 

    

 

 

    

 

 

 

Number of visitors

     3,505,000        3,805,000        (7.9 %) 

Bad weather days

     73        56     

Balance Sheet

As of December 31, 2019, the Company had total debt outstanding of approximately $1.7 billion and held cash and cash equivalents of $233.9 million. The Company’s consolidated net debt to total market capitalization was approximately 25.2% and consolidated net debt to EBITDA was 4.1x.

Dividend

On December 31, 2019, the Company paid a dividend of $0.105 per share, or unit as applicable, for the fourth quarter 2019 to holders of the Company’s Class A common stock (NYSE: ESRT) and Class B common stock and to holders of the Series ES, Series 250 and Series 60 partnership units (NYSE Arca: ESBA, FISK and OGCP, respectively) and Series PR partnership units of Empire State Realty OP, L.P., the Company’s operating partnership (the “Operating Partnership”). The Company paid a dividend of $0.15 per unit for the fourth quarter 2019 to holders of the Operating Partnership’s Series 2014 private perpetual preferred units and paid a dividend of $0.175 per unit for the fourth quarter 2019 to holders of the Operating Partnership’s Series 2019 private perpetual preferred units.

 

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Webcast and Conference Call Details

Empire State Realty Trust, Inc. will host a webcast and conference call, open to the general public, on Thursday, February 20, 2020 at 2:00 pm Eastern time.

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

The conference call can also be accessed by dialing 1-877-407-3982 for domestic callers or 1-201-493-6780 for international callers. A dial-in replay will be available starting shortly after the call until February 27, 2020, which can be accessed by dialing 1-844-512-2921 for domestic callers or 1-412-317-6671 for international callers. The passcode for this dial-in replay is 13698061.

The Supplemental Report will be available prior to the conference call on the “Investors” section of the Company’s website at www.empirestaterealtytrust.com.

About Empire State Realty Trust

Empire State Realty Trust, Inc. (NYSE: ESRT), a leading real estate investment trust (REIT), owns, manages, operates, acquires and repositions office and retail properties in Manhattan and the greater New York metropolitan area, including the Empire State Building, the world’s most famous building. Headquartered in New York, New York, the Company’s office and retail portfolio covers 10.1 million rentable square feet, as of December 31, 2019, consisting of 9.4 million rentable square feet in 14 office properties, including nine in Manhattan, three in Fairfield County, Connecticut, and two in Westchester County, New York; and approximately 700,000 rentable square feet in the retail portfolio.

 

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Forward-Looking Statements

This press release includes “forward looking statements” within the meaning of the federal securities laws. Forward-looking statements may be identified by the use of words such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “estimates,” “contemplates,” “aims,” “continues,” “would” or “anticipates” or the negative of these words and phrases or similar words or phrases. The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: changes in our industry, the real estate markets, either nationally or in Manhattan or the greater New York metropolitan area; resolution of legal proceedings involving the Company; reduced demand for office or retail space; general volatility of the capital and credit markets and the market price of the Company’s Class A common stock and the publicly-traded partnership units of the Operating Partnership; changes in our business strategy; changes in technology and market competition that affect utilization of our broadcast or other facilities; changes in domestic or international tourism, including geopolitical events and currency exchange rates; defaults on, early terminations of, or non-renewal of, leases by tenants; fluctuations in interest rates; declining real estate valuations and impairment charges; termination or expiration of our ground leases; our failure to obtain or maintain necessary outside financing, including our unsecured revolving credit facility and term loan facility; our leverage; decreased rental rates or increased vacancy rates; our failure to redevelop and reposition properties, or to execute any newly planned capital project, successfully or on the anticipated timeline or at the anticipated costs; difficulties in identifying properties to acquire and completing acquisitions; risks of real estate development (including our Metro Tower development site) and capital projects, including the cost of construction delays and cost overruns; impact of changes in governmental regulations, tax laws and rates and similar matters; our failure to qualify as a REIT; and environmental uncertainties and risks related to adverse weather conditions, rising sea levels and natural disasters. For a further discussion of these and other factors that could impact the Company’s future results, performance or transactions, see the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, and other risks described in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission.

 

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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 press release, except as required by applicable law. Prospective investors should not place undue reliance on any forward-looking statements, which are based only on information currently available to the Company (or to third parties making the forward-looking statements).

Contact:

Investors

Empire State Realty Trust Investor Relations

(212) 850-2678

IR@empirestaterealtytrust.com

Media

Sard Verbinnen & Co.

(212) 687-8080

 

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Empire State Realty Trust, Inc.

Condensed Consolidated Statements of Income

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

 

     Three Months Ended December 31,  
     2019     2018  

Revenues

    

Rental revenue (1)

   $ 151,701     $ 123,261  

Tenant expense reimbursement (1)

     —         19,746  

Observatory revenue

     37,730       34,536  

Lease termination fees

     1,240       18,683  

Third-party management and other fees

     299       289  

Other revenue and fees

     3,963       2,794  
  

 

 

   

 

 

 

Total revenues

     194,933       199,309  

Operating expenses

    

Property operating expenses

     43,901       41,004  

Ground rent expenses

     2,332       2,332  

General and administrative expenses

     16,618       13,673  

Observatory expenses

     8,743       8,899  

Real estate taxes

     29,818       28,229  

Depreciation and amortization

     46,409       46,682  
  

 

 

   

 

 

 

Total operating expenses

     147,821       140,819  

Total operating income

     47,112       58,490  

Other income (expense):

    

Interest income

     1,352       3,452  

Interest expense

     (18,534     (20,849
  

 

 

   

 

 

 

Income before income taxes

     29,930       41,093  

Income tax expense

     (1,210     (1,312
  

 

 

   

 

 

 

Net income

     28,720       39,781  

Preferred unit distributions

     (1,041     (234

Net income attributable to non-controlling interests

     (10,880     (16,705
  

 

 

   

 

 

 

Net income attributable to common stockholders

   $ 16,799     $ 22,842  
  

 

 

   

 

 

 

Total weighted average shares

    

Basic

     180,166       171,829  
  

 

 

   

 

 

 

Diluted

     296,852       297,492  
  

 

 

   

 

 

 

Net income per share attributable to common stockholders

 

Basic

   $ 0.09     $ 0.13  
  

 

 

   

 

 

 

Diluted

   $ 0.09     $ 0.13  
  

 

 

   

 

 

 

Note:

 

(1)

The Company adopted Financial Accounting Standards Board Topic 842 using the modified retrospective approach as of January 1, 2019 and elected to apply the transition provisions of the standard at adoption. As such, the prior period amounts presented under ASC 840 were not restated to conform with the 2019 presentation. The Company adopted the practical expedient in Topic 842, which allowed the Company to avoid separating lease and non-lease rental income. Consequently, all rental income earned pursuant to tenant leases in 2019 is reflected as one category, “Rental Revenue,” in the 2019 consolidated statements of income. The billed tenant expense reimbursement was $21.5 million for the three months ended December 31, 2019.

In connection with the adoption of Topic 842, beginning in 2019, the Company expensed certain leasing costs that were previously capitalized. Had the Company adopted Topic 842 in 2018, it would have expensed in general and administrative expenses an additional $1.3 million of such costs in the fourth quarter 2018.

 

9


LOGO

 

Empire State Realty Trust, Inc.

Condensed Consolidated Statements of Income

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

 

     Year Ended December 31,  
     2019     2018  

Revenues

    

Rental revenue (1)

   $ 586,414     $ 493,231  

Tenant expense reimbursement (1)

     —         72,372  

Observatory revenue

     128,769       131,227  

Lease termination fees

     4,352       20,847  

Third-party management and other fees

     1,254       1,440  

Other revenue and fees

     10,554       12,394  
  

 

 

   

 

 

 

Total revenues

     731,343       731,511  

Operating expenses

    

Property operating expenses

     174,977       167,379  

Ground rent expenses

     9,326       9,326  

General and administrative expenses

     61,063       52,674  

Observatory expenses

     33,767       32,767  

Real estate taxes

     115,916       110,000  

Depreciation and amortization

     181,588       168,508  
  

 

 

   

 

 

 

Total operating expenses

     576,637       540,654  

Total operating income

     154,706       190,857  

Other income (expense):

    

Interest income

     11,259       10,661  

Interest expense

     (79,246     (79,623
  

 

 

   

 

 

 

Income before income taxes

     86,719       121,895  

Income tax benefit (expense)

     (2,429     (4,642
  

 

 

   

 

 

 

Net income

     84,290       117,253  

Preferred unit distributions

     (1,743     (936

Net income attributable to non-controlling interests

     (33,102     (50,714
  

 

 

   

 

 

 

Net income attributable to common stockholders

   $ 49,445     $ 65,603  
  

 

 

   

 

 

 

Total weighted average shares

    

Basic

     178,340       167,571  
  

 

 

   

 

 

 

Diluted

     297,798       297,259  
  

 

 

   

 

 

 

Net income per share attributable to common stockholders

 

Basic

   $ 0.28     $ 0.39  
  

 

 

   

 

 

 

Diluted

   $ 0.28     $ 0.39  
  

 

 

   

 

 

 

Note:

 

(1)

The Company adopted Financial Accounting Standards Board Topic 842 using the modified retrospective approach as of January 1, 2019 and elected to apply the transition provisions of the standard at adoption. As such, the prior period amounts presented under ASC 840 were not restated to conform with the 2019 presentation. The Company adopted the practical expedient in Topic 842, which allowed the Company to avoid separating lease and non-lease rental income. Consequently, all rental income earned pursuant to tenant leases in 2019 is reflected as one category, “Rental Revenue,” in the 2019 consolidated statements of income. The billed tenant expense reimbursement was $75.3 million for the year ended December 31, 2019.

In connection with the adoption of Topic 842, beginning in 2019, the Company expensed certain leasing costs that were previously capitalized. Had the Company adopted Topic 842 in 2018, it would have expensed in general and administrative expenses an additional $4.6 million of such costs in the year ended December 31, 2018.

 

10


LOGO

 

Empire State Realty Trust, Inc.

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

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

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

 

    

Three Months Ended

December 31,

 
     2019     2018  

Net income

   $ 28,720     $ 39,781  

Preferred unit distributions

     (1,041     (234

Real estate depreciation and amortization

     45,298       45,771  
  

 

 

   

 

 

 

FFO attributable to common stockholders and non-controlling interests

     72,977       85,318  

Amortization of below-market ground leases

     1,958       1,958  
  

 

 

   

 

 

 

Modified FFO attributable to common stockholders and non-controlling interests

     74,935       87,276  
  

 

 

   

 

 

 

Core FFO attributable to common stockholders and non-controlling interests

   $ 74,935     $ 87,276  
  

 

 

   

 

 

 

Total weighted average shares

    

Basic

     296,852       297,492  
  

 

 

   

 

 

 

Diluted

     296,852       297,492  
  

 

 

   

 

 

 

FFO per share

    

Basic

   $ 0.25     $ 0.29  
  

 

 

   

 

 

 

Diluted

   $ 0.25     $ 0.29  
  

 

 

   

 

 

 

Modified FFO per share

    

Basic

   $ 0.25     $ 0.29  
  

 

 

   

 

 

 

Diluted

   $ 0.25     $ 0.29  
  

 

 

   

 

 

 

Core FFO per share

    

Basic

   $ 0.25     $ 0.29  
  

 

 

   

 

 

 

Diluted

   $ 0.25     $ 0.29  
  

 

 

   

 

 

 

 

11


LOGO

 

Empire State Realty Trust, Inc.

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

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

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

 

     Year Ended December 31,  
     2019     2018  

Net income

   $ 84,290     $ 117,253  

Preferred unit distributions

     (1,743     (936

Real estate depreciation and amortization

     177,515       166,292  
  

 

 

   

 

 

 

FFO attributable to common stockholders and non-controlling interests

     260,062       282,609  

Amortization of below-market ground leases

     7,831       7,831  
  

 

 

   

 

 

 

Modified FFO attributable to common stockholders and non-controlling interests

     267,893       290,440  
  

 

 

   

 

 

 

Core FFO attributable to common stockholders and non-controlling interests

   $ 267,893     $ 290,440  
  

 

 

   

 

 

 

Total weighted average shares

    

Basic

     297,798       297,258  
  

 

 

   

 

 

 

Diluted

     297,798       297,259  
  

 

 

   

 

 

 

FFO per share

 

Basic

   $ 0.87     $ 0.95  
  

 

 

   

 

 

 

Diluted

   $ 0.87     $ 0.95  
  

 

 

   

 

 

 

Modified FFO per share

    

Basic

   $ 0.90     $ 0.98  
  

 

 

   

 

 

 

Diluted

   $ 0.90     $ 0.98  
  

 

 

   

 

 

 

Core FFO per share

    

Basic

   $ 0.90     $ 0.98  
  

 

 

   

 

 

 

Diluted

   $ 0.90     $ 0.98  
  

 

 

   

 

 

 

 

12


LOGO

 

Empire State Realty Trust, Inc.

Condensed Consolidated Balance Sheets

(unaudited and amounts in thousands)

 

     December 31,
2019
    December 31,
2018
 

Assets

    

Commercial real estate properties, at cost

   $ 3,109,433     $ 2,884,486  

Less: accumulated depreciation

     (862,534     (747,304
  

 

 

   

 

 

 

Commercial real estate properties, net

     2,246,899       2,137,182  

Cash and cash equivalents

     233,946       204,981  

Restricted cash

     37,651       65,832  

Short-term investments

     —         400,000  

Tenant and other receivables

     25,423       29,437  

Deferred rent receivables

     220,960       200,903  

Prepaid expenses and other assets

     65,453       64,345  

Deferred costs, net

     228,150       241,223  

Acquired below market ground leases, net

     352,566       360,398  

Right of use assets

     29,307       —    

Goodwill

     491,479       491,479  
  

 

 

   

 

 

 

Total assets

   $ 3,931,834     $ 4,195,780  
  

 

 

   

 

 

 

Liabilities and equity

    

Mortgage notes payable, net

   $ 605,542     $ 608,567  

Senior unsecured notes, net

     798,392       1,046,219  

Unsecured term loan facility, net

     264,640       264,147  

Unsecured revolving credit facility

     —         —    

Accounts payable and accrued expenses

     143,786       130,676  

Acquired below market leases, net

     39,679       52,450  

Ground lease liabilities

     29,307       —    

Deferred revenue and other liabilities

     72,015       44,810  

Tenants’ security deposits

     30,560       57,802  
  

 

 

   

 

 

 

Total liabilities

     1,983,921       2,204,671  

Total equity

     1,947,913       1,991,109  
  

 

 

   

 

 

 

Total liabilities and equity

   $ 3,931,834     $ 4,195,780  
  

 

 

   

 

 

 

 

13

EX-99.2

Exhibit 99.2

 

LOGO


LOGO   
       
       
   Fourth Quarter 2019

 

 

Table of Contents

 

     Page  

Summary

  

Company Profile

     3  

Financial Highlights

     4  

Selected Property Data

  

Property Summary Net Operating Income

     5  

Net Operating Income and Initial Free Rent Burn-Off

     6  

Leasing Activity

     7  

Portfolio Expirations and Vacates Summary

     9  

Property Detail

     10  

Tenant Lease Expirations

     11  

Largest Tenants and Portfolio Tenant Diversification by Industry

     14  

Capital Expenditures and Redevelopment Program

     15  

Observatory Summary

     16  

Financial information

  

Condensed Consolidated Balance Sheets

     17  

Condensed Consolidated Statements of Income

     18  

Core FFO, Modified FFO, FFO, FAD and EBITDA

     19  

Consolidated Debt Analysis

  

Debt Summary

     20  

Debt Detail

     21  

Debt Maturities

     22  

Ground Leases

     22  

Supplemental Definitions

     23  

Forward-looking Statements

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

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

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

The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: changes in our industry and markets, either nationally or in Manhattan or the greater New York metropolitan area; resolution of legal proceedings involving our company; reduced demand for office or retail space; new office or observatory development in our market; general volatility of the capital and credit markets and the market price of our Class A common stock and listed operating partnership units; changes in our business strategy; defaults on, early terminations of, or non-renewal of, leases by tenants; insolvency of a major tenant or a significant number of smaller tenants; litigation; fluctuations in interest rates; increased operating costs; declining real estate valuations and impairment charges; availability, terms and deployment of capital; our failure to obtain necessary outside financing; our expected leverage; decreased rental rates or increased vacancy rates; breach of or the expiration of our ground lease; our failure to generate sufficient cash flows to service our outstanding indebtedness; our failure to redevelop, renovate and reposition properties or to execute any planned capital project, successfully or on the anticipated timeline or at the anticipated costs; difficulties in identifying properties to acquire and completing acquisitions; risks of real estate acquisitions, dispositions and development (including our Metro Tower development site), including construction delays and cost overruns; our failure to operate acquired properties and operations successfully; our ability to manage our growth effectively; changes in governmental regulations, tax laws and rates and similar matters; estimates relating to our ability to make distributions to our securityholders in the future; our failure to qualify as a REIT; a future terrorist event in the U.S.; environmental uncertainties and risks related to adverse weather conditions and natural disasters; lack or insufficient amounts of insurance; financial market fluctuations; availability of, and our ability to attract and retain, qualified personnel; conflicts of interest affecting our senior management team; competition; changes in real estate and zoning laws and increases in real property tax rates; inability to comply with applicable rules and regulations and, in particular, public companies and damages resulting from security breaches through cyberattacks, cyber intrusions or otherwise, as well as other significant disruptions of our technology (IT) networks related systems. While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. We disclaim any obligation to update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, or new information, data or methods, future events or other changes after the date of this presentation, except as required by applicable law. For a further discussion of these and other factors that could impact our future results, performance or transactions, see the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2018 and other risks described in documents we subsequently file from time to time with the Securities and Exchange Commission.

 

Page 2


LOGO   
       
  
   Fourth Quarter 2019

 

 

COMPANY PROFILE

 

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

BOARD OF DIRECTORS

 

 

Anthony E. Malkin    Chairman and Chief Executive Officer
William H. Berkman    Director, Chair of Finance Committee
Leslie D. Biddle    Director
Thomas J. DeRosa    Director
Steven J. Gilbert    Director, Lead Director
S. Michael Giliberto    Director, Chair of Audit Committee
Patricia S. Han    Director
James D. Robinson IV    Director, Chair of Compensation and Nominating/Corporate Governance Committees

EXECUTIVE MANAGEMENT

 

 

Anthony E. Malkin    Chairman and Chief Executive Officer
John B. Kessler    President and Chief Operating Officer
Thomas P. Durels    Executive Vice President, Real Estate
Thomas N. Keltner, Jr.    Executive Vice President, General Counsel and Secretary

COMPANY INFORMATION

 

 

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

RESEARCH COVERAGE

 

 

Bank of America Merrill Lynch    James Feldman    (646) 855-5808    james.feldman@baml.com
BMO Capital Markets Corp.    John Kim    (212) 885-4115    jp.kim@bmo.com
BTIG    Thomas Catherwood    (212) 738-6140    tcatherwood@btig.com
Citi    Michael Bilerman    (212) 816-1383    michael.bilerman@citi.com
   Emmanuel Korchman    (212) 816-1382    emmanuel.korchman@citi.com
Evercore ISI    Steve Sakwa    (212) 446-9462    steve.sakwa@evercoreisi.com
   Jason Green    (212) 446-9449    jason.green@evercoreisi.com
Green Street Advisors    Daniel Ismail    (949) 640-8780    dismail@greenstreetadvisors.com
Goldman Sachs    Richard Skidmore    (801) 741-5459    richard.skidmore@gs.com
KeyBanc Capital Markets    Jordan Sadler    (917) 368-2280    jsadler@key.com
   Craig Mailman    (917) 368-2316    cmailman@key.com
Stifel Nicolaus & Company, Inc.    John Guinee    (443) 224-1307    jwguinee@stifel.com
Wells Fargo Securities, LLC    Blaine Heck    (443) 263-6529    blaine.heck@wellsfargo.com

 

Page 3


LOGO   
   Fourth Quarter 2019
   Financial Highlights
   (unaudited and dollars in thousands, except per share amounts)

 

 

    Three Months Ended  

Selected Items:

  December 31,
2019
    September 30,
2019
    June 30,
2019
    March 31,
2019
    December 31,
2018
 

Revenue

  $ 194,933     $ 192,873     $ 176,244     $ 167,293     $ 199,309  

Net income

  $ 28,720     $ 26,784     $ 18,930     $ 9,856     $ 39,781  

Cash net operating income (1)

  $ 103,992     $ 98,757     $ 93,737     $ 80,080     $ 113,336  

Core funds from operations (“Core FFO”) (1)

  $ 74,935     $ 71,810     $ 64,476     $ 56,672     $ 87,276  

Core funds available for distribution (“Core FAD”) (1)

  $ 41,903     $ 54,650     $ 48,235     $ 41,179     $ 68,142  

Core FFO per share - diluted

  $ 0.25     $ 0.24     $ 0.22     $ 0.19     $ 0.29  

Diluted weighted average shares

    296,852,000       298,151,000       298,131,000       298,049,000       297,492,000  

Dividends declared and paid per share

  $ 0.105     $ 0.105     $ 0.105     $ 0.105     $ 0.105  
   

Portfolio Statistics:

         

Number of properties

    20       20       20       20       20  

Total rentable square footage

    10,138,057       10,134,495       10,134,435       10,130,875       10,128,839  

Percent occupied (2)

    88.6     89.4     90.2     88.8     88.8

Percent leased (3)

    91.2     91.7     92.2     91.5     91.8

Observatory Metrics:

         

Number of visitors (4)

    894,000       1,042,000       968,000       601,000       945,000  

Change in visitors year over year

    (5.5 %)      (10.7 %)      (7.7 %)      (6.7 %)      (4.6 %) 

Observatory revenues (5)

  $ 37,730     $ 37,575     $ 32,895     $ 20,569     $ 34,536  

Change in revenues year over year

    9.2     (6.6 %)      (6.6 %)      (3.2 %)      4.9
   

Ratios:

         

Consolidated Debt to Total Market Capitalization (6)

    28.2     27.7     29.8     28.5     30.8

Consolidated Net Debt to Total Market
Capitalization (6)

    25.2     24.1     23.6     21.6     23.4

Consolidated Debt and Perpetual Preferred Units to Total Market Capitalization (6)

    29.7     28.2     30.2     28.9     31.2

Consolidated Net Debt and Perpetual Preferred Units to Total Market Capitalization (6)

    26.8     24.5     24.0     22.0     23.8

Consolidated Debt to EBITDA (7)

    4.8     4.6     5.3     5.2     5.2

Consolidated Net Debt to EBITDA (7)

    4.1     3.8     3.9     3.6     3.6

Interest Coverage Ratio

    5.0     4.8     4.4     4.0     5.7

Core FFO Payout Ratio (8)

    43     45     50     56     35

Core FAD Payout Ratio (9

    76     59     66     77     45
   

Class A common stock price at quarter end

  $ 13.96     $ 14.27     $ 14.81     $ 15.80     $ 14.23  

Average closing price

  $ 14.04     $ 14.12     $ 15.48     $ 15.36     $ 15.65  

Dividends per share - annualized

  $ 0.42     $ 0.42     $ 0.42     $ 0.42     $ 0.42  

Dividend yield (10)

    3.0     2.9     2.8     2.7     3.0

Series 2013 Private Perpetual Preferred Units outstanding ($16.62 liquidation value)

    1,560,360       1,560,360       1,560,360       1,560,360       1,560,360  

Series 2019 Private Perpetual Preferred Units outstanding ($13.52 liquidation value)

    4,610,383       —         —         —         —    

Class A common stock

    180,877,597       179,131,090       176,991,123       175,557,910       173,872,536  

Class B common stock

    1,016,799       1,018,463       1,029,782       1,035,327       1,038,090  

Operating partnership units

    117,757,653       124,107,019       126,870,876       128,232,650       128,415,440  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total common stock and operating partnership units outstanding (11)

    299,652,049       304,256,572       304,891,781       304,825,887       303,326,066  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Notes:

 

(1)

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

(2)

Based on leases signed and commenced as of end of period.

(3)

Represents occupancy and includes signed leases not commenced.

(4)

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

(5)

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

(6)

Market capitalization represents the sum of (i) Company’s common stock per share price as of December 31, 2019 multiplied by the total outstanding number of shares of common stock and operating partnership units as of December 31, 2019; (ii) the number of Series 2014 perpetual preferred units at December 31, 2019 multiplied by $16.62, (iii) the number of Series 2019 perpetual preferred units at December 31, 2019 multiplied by $13.52, and (iv) our outstanding indebetedness as of December 31, 2019.

(7)

Calculated based on trailing 12 months EBITDA.

(8)

Represents the amount of Core FFO paid out in distributions.

(9)

Represents the amount of Core FAD paid out in distributions.

(10)

Based on the closing price per share of Class A common stock on December 31, 2019.

(11)

As of December 31, 2019, the Company has had conversions from operating partnership units and Class B common shares to Class A common shares totaling 53.8 million shares or approximately $751 million at a closing share price of $13.96. This represents a 65% increase in the number of Class A shares since the IPO.

 

Page 4


LOGO   
   Fourth Quarter 2019
   Property Summary - Same Store Net Operating Income (“NOI”) by Quarter
   (unaudited and dollars in thousands)

 

 

     Three Months Ended  
     December 31,
2019
    September 30,
2019
    June 30,
2019
    March 31,
2019
    December 31,
2018
 

Same Store Total Portfolio

                              

Revenues

   $ 155,664     $ 152,633     $ 142,655     $ 146,016     $ 145,801  

Operating expenses

     (76,051     (79,824     (70,826     (73,518     (71,565
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Same store property NOI

     79,613       72,809       71,829       72,498       74,236  

Straight-line rent

     (6,276     (5,174     (3,203     (5,404     (5,445

Above/below-market rent revenue amortization

     (1,530     (1,682     (1,745     (2,354     (1,733

Below-market ground lease amortization

     1,958       1,957       1,958       1,958       1,958  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total same store property cash NOI - excluding lease termination fees

   $ 73,765     $ 67,910     $ 68,839     $ 66,698     $ 69,016  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Percent increase/decrease over prior year

     6.9     2.0     0.2     0.1     -1.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Property cash NOI

   $ 73,765     $ 67,910     $ 68,839     $ 66,698     $ 69,016  

Observatory cash NOI

     28,987       28,486       24,535       12,994       25,637  

Lease termination fees

     1,240       2,361       363       388       18,683  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total portfolio same store cash NOI

   $ 103,992     $ 98,757     $ 93,737     $ 80,080     $ 113,336  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Same Store Manhattan Office Portfolio (1)

                              

Revenues

   $ 132,672     $ 130,214     $ 120,249     $ 123,290     $ 122,481  

Operating expenses

     (65,509     (68,516     (60,152     (62,665     (60,919
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Same store property NOI

     67,163       61,698       60,097       60,625       61,562  

Straight-line rent

     (6,705     (5,319     (4,163     (5,408     (5,037

Above/below-market rent revenue amortization

     (1,530     (1,682     (1,745     (2,354     (1,733

Below-market ground lease amortization

     1,958       1,957       1,958       1,958       1,958  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total same store property cash NOI - excluding lease termination fees

     60,886       56,654       56,147       54,821       56,750  

Lease termination fees

     995       835       301       326       17,962  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total same store property cash NOI

   $ 61,881     $ 57,489     $ 56,448     $ 55,147     $ 74,712  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Same Store Greater New York

Metropolitan Area Office Portfolio

 

Revenues

   $ 18,771     $ 18,137     $ 17,798     $ 18,045     $ 18,566  

Operating expenses

     (8,663     (9,373     (8,784     (8,927     (8,839
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Same store property NOI

     10,108       8,764       9,014       9,118       9,727  

Straight-line rent

     285       (42     655       (124     (516

Above/below-market rent revenue amortization

     —         —         —         —         —    

Below-market ground lease amortization

     —         —         —         —         —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total same store property cash NOI - excluding lease termination fees

     10,393       8,722       9,669       8,994       9,211  

Lease termination fees

     245       710       62       62       721  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total same store property cash NOI

   $ 10,638     $ 9,432     $ 9,731     $ 9,056     $ 9,932  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Same Store Standalone Retail Portfolio

 

Revenues

   $ 4,221     $ 4,282     $ 4,608     $ 4,681     $ 4,754  

Operating expenses

     (1,879     (1,935     (1,890     (1,926     (1,807
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Same store property NOI

     2,342       2,347       2,718       2,755       2,947  

Straight-line rent

     144       187       305       128       108  

Above/below-market rent revenue amortization

     —         —         —         —         —    

Below-market ground lease amortization

     —         —         —         —         —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total same store property cash NOI - excluding lease termination fees

     2,486       2,534       3,023       2,883       3,055  

Lease termination fees

     —         816       —         —         —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total same store property cash NOI

   $ 2,486     $ 3,350     $ 3,023     $ 2,883     $ 3,055  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Note:

Includes 511,984 rentable square feet of retail space in the Company’s nine Manhattan office properties.

 

Page 5


LOGO   
   Fourth Quarter 2019
   Net Operating Income (“NOI”), Initial Free Rent Burn-Off and Signed Leases Not Commenced
   (unaudited and dollars in thousands)

 

 

     Three Months Ended  

Reconciliation of Net Income to NOI and Cash NOI

   December 31,
2019
    September 30,
2019
    June 30,
2019
    March 31,
2019
    December 31,
2018
 

Net income

   $ 28,720     $ 26,784     $ 18,930     $ 9,856     $ 39,781  

Add:

          

General and administrative expenses

     16,618       14,421       15,998       14,026       13,673  

Depreciation and amortization

     46,409       44,260       44,821       46,098       46,682  

Interest expense

     18,534       19,426       20,597       20,689       20,849  

Income tax expense (benefit)

     1,210       1,338       611       (730     1,312  

Less:

          

Third-party management and other fees

     (299     (304     (331     (320     (289

Interest income

     (1,352     (2,269     (3,899     (3,739     (3,452
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net operating income

     109,840       103,656       96,727       85,880       118,556  

Straight-line rent

     (6,276     (5,174     (3,203     (5,404     (5,445

Above/below-market rent revenue amortization

     (1,530     (1,682     (1,745     (2,354     (1,733

Below-market ground lease amortization

     1,958       1,957       1,958       1,958       1,958  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total cash NOI - including Observatory and lease termination income

     103,992       98,757       93,737       80,080       113,336  

Less: Observatory NOI

     (28,987     (28,486     (24,535     (12,994     (25,637

Less: lease termination income

     (1,240     (2,361     (363     (388     (18,683
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total property cash NOI - excluding Observatory and lease termination income

   $ 73,765     $ 67,910     $ 68,839     $ 66,698     $ 69,016  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Burn-off of Free Rent and Signed Leases Not Commenced

 

    

Incremental

Annual

     Base Cash Rent Contributing to Cash NOI in the Following Years  

Total Portfolio

   Revenue      2020      2021      2022      2023  

Commenced leases in free rent period

   $ 28,518      $ 19,734      $ 28,518      $ 28,518      $ 28,518  

Signed leases not commenced

     23,470        4,411        15,667        20,270        21,052  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 51,988      $ 24,145      $ 44,185      $ 48,788      $ 49,570  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Commenced leases in free rent period

 

                 Incremental
Annual
Revenue
        
     Square
Feet
    

Cash

Rent Date

   Base Cash Rent Contributing to Cash NOI in the Following Years  
     2020     2021      2022      2023  

First quarter 2020 - 16 leases

     225,315      Jan. 2020 - Mar. 2020    $ 11,023      $ 9,798  (1)    $ 11,023      $ 11,023      $ 11,023  

Second quarter 2020 - 10 leases

     211,192      Apr. 2020 - Jun. 2020      12,106        7,944       12,106        12,106        12,106  

Third quarter 2020 - 4 leases

     79,001      Jul. 2020 - Sept. 2020      4,730        1,870       4,730        4,730        4,730  

Fourth quarter 2020 - 3 leases

     20,841      Oct. 2020 - Dec. 2020      659        122       659        659        659  
        

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 
         $ 28,518      $ 19,734     $ 28,518      $ 28,518      $ 28,518  
        

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Signed leases not commenced (“SLNC”)

 

              Expected Base Rent      Incremental         
       Square          Commencement          Annual      Base Cash Rent Contributing to Cash NOI in the Following Years  

Tenant

     Feet      GAAP      Cash      Revenue (2)      2020      2021      2022      2023  

Diligent Corporation

 

     14,214        Jan. 2020        Sept. 2020      $ 910      $ 301      $ 910      $ 910      $ 910  

Interpublic Group of Companies, Inc.

 

     15,086        Apr. 2020        May 2020        1,060        701        1,060        1,060        1,060  

Kaplan Hecker & Fink LLP

 

     26,997        Jun. 2020        Jul. 2020        2,000        872        2,000        2,000        2,000  

Uber Technologies, Inc.

 

     32,927        Sept. 2020        Jan. 2021        2,300        —          2,300        2,300        2,300  

Concord Music Group, Inc.

 

     46,329        Sept. 2020        Jul. 2021        2,870        —          1,353        2,870        2,870  

First Republic Bank

 

     14,430        Jan. 2021        Jul. 2021        2,040        —          1,017        2,040        2,040  

LinkedIn Corporation:

 

                       

LinkedIn Corporation

 

     52,939        Apr. 2021        Sept. 2021        1,000        —          329        1,000        1,000  

LinkedIn Corporation

 

     52,666        Nov. 2021        Nov. 2021        900        —          147        900        900  

LinkedIn Corporation

 

     52,574        Jul. 2022        Jul. 2022        1,110        —          —          555        1,110  

LinkedIn Corporation

 

     30,283        Apr. 2023        Sept. 2023        670        —          —          —          222  

Target

 

     32,579        Jun. 2024        Oct. 2024        1,970        —          —          —          —    

Other SLNC

     112,638       
Jan. 2020 -
Aug. 2020
 
 
    
Feb. 2020
- Jan. 2021
 
 
        6,640        2,537        6,551        6,635        6,640  
  

 

 

             

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     483,662               $ 23,470      $ 4,411      $ 15,667      $ 20,270      $ 21,052  
  

 

 

             

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Notes:

 

(1)

As an example, the 2020 amount represents cash revenue contributing from the cash rent commencement date of January 2020 through December 2020. The full annual amount is realized in 2021.

(2)

Reflects new annual rent less annual rent from existing tenant in the space.

 

Page 6


LOGO   
   Fourth Quarter 2019
   Property Summary - Leasing Activity by Quarter
   (unaudited)

 

 

     Three Months Ended  
     December 31,
2019
    September 30,
2019
    June 30,
2019
    March 31,
2019
    December 31,
2018
 

Total Portfolio

          

Total leases executed

     47       25       55       34       35  

Weighted average lease term

     8.6 years       10.7 years       6.4 years       8.3 years       10.5 years  

Average free rent period

     5.3 months       6.9 months       2.8 months       4.7 months       5.4 months  

Office

          

Total square footage executed

     313,027       374,256       228,346       300,408       241,978  

Average cash rent psf - leases executed

   $ 59.74     $ 62.83     $ 59.13     $ 61.79     $ 62.44  

Previously escalated cash rents psf

   $ 54.02     $ 51.10     $ 51.72     $ 54.36     $ 49.69  

Percentage of new cash rent over previously escalated rents

     10.6     23.0     14.3     13.7     25.7

Retail

          

Total square footage executed

     32,579       14,430       32,706       7,643       4,782  

Average cash rent psf - leases executed

   $ 122.78     $ 141.68     $ 71.52     $ 109.54     $ 104.57  

Previously escalated cash rents psf

   $ 60.79     $ 104.66     $ 72.08     $ 106.84     $ 128.16  

Percentage of new cash rent over previously escalated rents

     102.0     35.4     (0.8 %)      2.5     (18.4 %) 

Total Portfolio

          

Total square footage executed

     345,606       388,686       261,052       308,051       246,760  

Average cash rent psf - leases executed

   $ 65.68     $ 65.76     $ 61.25     $ 63.90     $ 63.57  

Previously escalated cash rents psf

   $ 54.66     $ 53.09     $ 54.58     $ 56.35     $ 51.32  

Percentage of new cash rent over previously escalated rents

     20.2     23.9     12.2     13.4     23.9

Leasing commission costs per square foot

   $ 19.84     $ 23.75     $ 15.61     $ 15.00     $ 26.07  

Tenant improvement costs per square foot

     55.65       65.59       47.06       55.09       86.99  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total LC and TI per square foot (2)

   $ 75.49     $ 89.34     $ 62.67     $ 70.09     $ 113.06  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Occupancy

     88.6     89.4     90.2     88.8     88.8

Manhattan Office Portfolio (1)

 

Total leases executed

     36       18       40       30       28  

Office - New Leases

 

Total square footage executed

     170,247       266,769       119,235       153,506       204,999  

Average cash rent psf - leases executed

   $ 64.82     $ 71.36     $ 65.08     $ 63.74     $ 64.82  

Previously escalated cash rents psf

   $ 52.12     $ 53.83     $ 53.26     $ 52.65     $ 49.85  

Percentage of new cash rent over previously escalated rents

     24.4     32.6     22.2     21.1     30.0

Office - Renewal Leases

 

Total square footage executed

     54,345       18,826       56,211       131,304       13,547  

Average cash rent psf - leases executed

   $ 66.62     $ 53.83     $ 62.37     $ 62.51     $ 60.75  

Previously escalated cash rents psf

   $ 66.27     $ 53.64     $ 55.88     $ 58.55     $ 56.55  

Percentage of new cash rent over previously escalated rents

     0.5     0.4     11.6     6.8     7.4

Retail - New and Renewal Leases

 

Total square footage executed

     —         14,430       3,711       1,998       862  

Average cash rent psf - leases executed

   $ —       $ 141.68     $ 405.41     $ 80.00     $ 78.30  

Previously escalated cash rents psf

   $ —       $ 104.66     $ 317.25     $ 73.73     $ 78.30  

Percentage of new cash rent over previously escalated rents

     —         35.4     27.8     8.5     0.0

Total Manhattan Office Portfolio

 

Total square footage executed

     224,592       300,025       179,157       286,808       219,408  

Average cash rent psf - leases executed

   $ 65.26     $ 73.64     $ 71.28     $ 63.29     $ 64.62  

Previously escalated cash rents psf

   $ 55.54     $ 56.26     $ 59.55     $ 55.50     $ 50.38  

Percentage of new cash rent over previously escalated rents

     17.5     30.9     19.7     14.0     28.3

Leasing commission costs per square foot

   $ 19.81     $ 28.93     $ 20.53     $ 14.50     $ 27.50  

Tenant improvement costs per square foot

     70.39       78.31       56.60       54.18       90.85  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total LC and TI per square foot (2)

   $ 90.20     $ 107.24     $ 77.13     $ 68.68     $ 118.35  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Occupancy

     89.7     89.6     90.6     88.9     88.9

 

Page 7


LOGO   
   Fourth Quarter 2019
   Property Summary - Leasing Activity by Quarter - (Continued)
   (unaudited)

 

 

     Three Months Ended  
     December 31,
2019
    September 30,
2019
    June 30,
2019
    March 31,
2019
    December 31,
2018
 

Greater New York Metropolitan Area Office Portfolio

          

Total leases executed

     10       7       12       3       6  

Total square footage executed

     88,435       88,661       52,900       15,598       23,432  

Average cash rent psf - leases executed

   $ 45.73     $ 39.08     $ 42.30     $ 36.60     $ 42.59  

Previously escalated cash rents psf

   $ 50.15     $ 42.36     $ 43.82     $ 35.78     $ 44.30  

Percentage of new cash rent over previously escalated rents

     (8.8 %)      (7.7 %)      (3.5 %)      2.3     (3.9 %) 

Leasing commission costs per square foot

   $ 8.00     $ 6.22     $ 6.05     $ 15.32     $ 11.32  

Tenant improvement costs per square foot

     26.02       22.53       37.37       77.21       50.30  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total LC and TI per square foot (2)

   $ 34.02     $ 28.75     $ 43.42     $ 92.53     $ 61.62  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Occupancy

     83.0     88.0     87.8     87.8     87.6

Standalone Retail Portfolio

          

Total leases executed

     1       —         3       1       1  

Total square footage executed

     32,579       —         28,995       5,645       3,920  

Average cash rent psf - leases executed

   $ 122.78     $ —       $ 28.78     $ 120.00     $ 110.34  

Previously escalated cash rents psf

   $ 60.79     $ —       $ 40.70     $ 118.56     $ 139.12  

Percentage of new cash rent over previously escalated rents

     102.0     —         (29.3 %)(3)      1.2     (20.7 %) 

Leasing commission costs per square foot

   $ 52.21     $ —       $ 2.68     $ 39.08     $ 34.10  

Tenant improvement costs per square foot

     34.47       —         5.79       40.00       90.00  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total LC and TI per square foot (2)

   $ 86.68     $ —       $ 8.47     $ 79.08     $ 124.10  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Occupancy

     93.7     93.7     93.7     94.4     94.4

Notes:

 

(1)

Includes 511,984 rentable square feet of retail space in the Company’s nine Manhattan office properties.

(2)

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

(3)

Includes the renewal of two parking garages comprising 27,143 of rentable square feet. These below grade spaces have market rents considerably lower than the Company’s typical street grade retail and drove the negative spread for the quarter.

 

Page 8


LOGO   
   Fourth Quarter 2019
   Total Portfolio Expirations and Vacates Summary
   (unaudited and in square feet)

 

 

     Actual     Forecast (1)  
     Three Months Ended     Three Months Ended              

Total Portfolio (2)

   December 31,
2019
    March 31,
2020
    June 30,
2020
    September 30,
2020
     December 31,
2020
    Full Year
2020
    Full Year
2021
 

Total expirations

     311,050       92,373       370,671       162,334        144,394       769,772       660,924  

Less: broadcasting

     (2,528     (906     (309     —          (753     (1,968     (1,049
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Office and retail expirations

     308,522       91,467       370,362       162,334        143,641       767,804       659,875  
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Renewal & relocations (3)

     72,524       31,086       57,774       60,501        25,951       175,312       160,115  

Short-term renewals (4)

     3,339       —         —         —          —         —         —    

New leases (5)

     71,797       7,190       171,863       18,315        3,162       200,530       11,469  

Tenant vacates (6)

     140,744       26,335       101,820       55,951        42,656       226,762       197,954  

Intentional vacates (7)

     20,118       26,755       28,105       10,892        —         65,752       20,244  

Holdover (8)

     —         —         —         —          —         —         —    

Unknown (9)

     —         101       10,800       16,675        71,872       99,448       270,093  
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total Portfolio expirations and vacates

     308,522       91,467       370,362       162,334        143,641       767,804       659,875  
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Manhattan Office Portfolio

                                           

Total expirations

     144,036       53,312       242,738       150,443        111,753       558,246       419,381  

Less: broadcasting

     (2,528     (906     (309     —          (753     (1,968     (1,049
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Office expirations

     141,508       52,406       242,429       150,443        111,000       556,278       418,332  
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Renewal & relocations (3)

     32,298       13,039       26,008       53,752        17,587       110,386       33,280  

Short-term renewals (4)

     —         —         —         —          —         —         —    

New leases (5)

     71,797       7,190       164,549       18,315        3,162       193,216       11,469  

Tenant vacates (6)

     17,537       22,996       20,533       50,809        34,762       129,100       143,100  

Intentional vacates (7)

     19,876       9,080       20,668       10,892        —         40,640       20,244  

Holdover (8)

     —         —         —         —          —         —         —    

Unknown (9)

     —         101       10,671       16,675        55,489       82,936       210,239  
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total expirations and vacates

     141,508       52,406       242,429       150,443        111,000       556,278       418,332  
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Greater New York Metropolitan Area Office Portfolio

                                      

Office expirations

     163,999       17,148       117,062       8,391        23,076       165,677       211,165  
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Renewal & relocations (3)

     37,453       13,809       28,461       3,249        8,364       53,883       108,503  

Short-term renewals (4)

     3,339       —         —         —          —         —         —    

New leases (5)

     —         —         7,314       —          —         7,314       —    

Tenant vacates (6)

     123,207       3,339       81,287       5,142        —         89,768       46,455  

Intentional vacates (7)

     —         —         —         —          —         —         —    

Holdover (8)

     —         —         —         —          —         —         —    

Unknown (9)

     —         —         —         —          14,712       14,712       56,207  
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total expirations and vacates

     163,999       17,148       117,062       8,391        23,076       165,677       211,165  
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Retail Portfolio

                                           

Retail expirations

     3,015       21,913       10,871       3,500        9,565       45,849       30,378  
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Renewal & relocations (3)

     2,773       4,238       3,305       3,500        —         11,043       18,332  

Short-term renewals (4)

     —         —         —         —          —         —         —    

New leases (5)

     —         —         —         —          —         —         —    

Tenant vacates (6)

     —         —         —         —          7,894       7,894       8,399  

Intentional vacates (7)

     242       17,675       7,437       —          —         25,112       —    

Holdover (8)

     —         —         —         —          —         —         —    

Unknown (9)

     —         —         129       —          1,671       1,800       3,647  
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total expirations and vacates

     3,015       21,913       10,871       3,500        9,565       45,849       30,378  
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Notes:

 

(1)

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

(2)

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

(3)

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

(4)

Represents tenants which signed renewal leases for a term of less than six months and reappear in forecast periods in 2020.

(5)

For forecasted periods, “New Leases” represents leases that have been signed with a new tenant, a subtenant who signed a direct lease or a tenant who expanded. The lease commencement dates are provided on page 6. There may be downtime between the lease expiration and the new lease commencement.

(6)

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

(7)

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

(8)

Holdover represents a tenant that remains in its space, paying rent after the expiration of its lease, but is not anticipated to continue doing so on a monthly basis. These tenants may reappear in forecast periods in 2020.

(9)

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

 

Page 9


LOGO   
   Fourth Quarter 2019
   Property Detail
   (unaudited)

 

 

Property Name

  

Location or Sub-Market

   Rentable
Square Feet (1)
     Percent
Occupied (2)
    Annualized
Rent (3)
     Annualized
Rent
per Occupied
Square Foot (4)
     Number of
Leases (5)
 

Manhattan Office Properties - Office

                

The Empire State Building (6)

  

Penn Station -Times Sq. South

     2,711,163        95.0   $ 155,183,111      $ 60.25        168  

One Grand Central Place

  

Grand Central

     1,249,248        87.2     64,693,231        59.39        187  

1400 Broadway (8)

  

Penn Station -Times Sq. South

     914,983        88.3     43,275,161        53.56        24  

111 West 33rd Street (9)

  

Penn Station -Times Sq. South

     641,067        95.4     36,721,047        60.03        23  

250 West 57th Street

  

Columbus Circle - West Side

     473,811        72.3     21,181,440        61.87        43  

501 Seventh Avenue

  

Penn Station -Times Sq. South

     461,652        81.6     18,610,631        49.42        28  

1359 Broadway

  

Penn Station -Times Sq. South

     455,849        97.5     24,472,645        55.09        33  

1350 Broadway (10)

  

Penn Station -Times Sq. South

     372,643        85.3     18,856,099        59.29        56  

1333 Broadway

  

Penn Station -Times Sq. South

     292,835        80.3     12,430,192        52.88        9  
     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Manhattan Office Properties - Office

        7,573,251        89.8     395,423,557        58.14        571  

Manhattan Office Properties - Retail

                

The Empire State Building (7)

  

Penn Station -Times Sq. South

     104,862        69.5     13,533,939        185.82        13  

One Grand Central Place

  

Grand Central

     68,732        79.0     6,438,552        118.57        13  

1400 Broadway (8)

  

Penn Station -Times Sq. South

     20,418        77.4     2,049,950        129.64        8  

112 West 34th Street (9)

  

Penn Station -Times Sq. South

     90,132        100.0     23,273,046        258.21        4  

250 West 57th Street

  

Columbus Circle - West Side

     67,927        100.0     10,315,884        151.87        8  

501 Seventh Avenue

  

Penn Station -Times Sq. South

     33,632        87.3     2,018,064        68.74        8  

1359 Broadway

  

Penn Station -Times Sq. South

     27,506        100.0     2,346,399        85.30        6  

1350 Broadway (10)

  

Penn Station -Times Sq. South

     31,774        95.6     7,126,817        234.52        5  

1333 Broadway

  

Penn Station -Times Sq. South

     67,001        100.0     9,318,123        139.07        4  
     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Manhattan Office Properties - Retail

        511,984        88.9     76,420,774        167.86        69  
     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Sub-Total/Weighted Average Manhattan Office Properties - Office and Retail

        8,085,235        89.7     471,844,331        65.03        640  
     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Greater New York Metropolitan Area Office Properties

                

First Stamford Place (11)

  

Stamford, CT

     779,098        87.9     29,645,250        43.31        44  

Metro Center

  

Stamford, CT

     287,909        86.5     15,566,110        62.51        24  

383 Main Avenue

  

Norwalk, CT

     260,546        49.7     3,853,921        29.74        20  

500 Mamaroneck Avenue

  

Harrison, NY

     287,157        82.8     7,152,838        30.10        29  

10 Bank Street

  

White Plains, NY

     232,517        100.0     8,361,727        35.96        36  
     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Sub-Total/Weighted Average Greater New York Metropolitan Area Office Properties

        1,847,227        83.0     64,579,846        42.12        153  
     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Standalone Retail Properties

                

10 Union Square

  

Union Square

     58,007        92.6     6,099,375        113.55        11  

1542 Third Avenue

  

Upper East Side

     56,250        100.0     4,151,047        73.80        4  

1010 Third Avenue

  

Upper East Side

     44,662        100.0     3,612,691        80.89        2  

77 West 55th Street

  

Midtown

     25,388        100.0     2,773,026        109.23        3  

69-97 Main Street

  

Westport, CT

     16,958        48.5     985,964        119.90        2  

103-107 Main Street

  

Westport, CT

     4,330        100.0     770,916        178.04        1  
     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Sub-Total/Weighted Average Standalone Retail Properties

        205,595        93.7     18,393,019        95.52        23  
     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Portfolio Total

        10,138,057        88.6   $ 554,817,196      $ 61.77        816  
     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total/Weighted Average Office Properties

        9,420,478        88.5   $ 460,003,403      $ 55.19        724  

Total/Weighted Average Retail Properties

        717,579        90.3     94,813,793        146.36        92  
     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Portfolio Total

        10,138,057        88.6   $ 554,817,196      $ 61.77        816  
     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Notes:

 

(1)

Excludes (i) 193,268 square feet of space across the Company’s portfolio attributable to building management use and tenant amenities and (ii) 79,613 square feet of space attributable to the Company’s observatory.

(2)

Based on leases signed and commenced as of December 31, 2019.

(3)

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

(4)

Represents annualized rent under leases commenced as of December 31, 2019 divided by occupied square feet.

(5)

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

(6)

Includes 36,970 rentable square feet of space leased by the Company’s broadcasting tenants.

(7)

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

(8)

Denotes a ground leasehold interest in the property with a remaining term, including unilateral extension rights available to the Company, of approximately 44 years (expiring December 31, 2063).

(9)

Denotes a ground leasehold interest in the property with a remaining term, including unilateral extension rights available to the Company, of approximately 58 years (expiring May 31, 2077).

(10)

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

(11)

First Stamford Place consists of three buildings.

 

Page 10


LOGO   
   Fourth Quarter 2019
   Tenant Lease Expirations
   (unaudited)

 

 

Total Lease Expirations

   Number
of Leases
Expiring (1)
     Rentable
Square Feet
Expiring (2)
     Percent of
Portfolio
Rentable
Square Feet
Expiring
    Annualized
Rent (3)
     Percent of
Annualized
Rent
    Annualized
Rent Per
Rentable
Square Foot
 

Available

     —          893,363        8.8   $ —          0.0   $ —    

Signed leases not commenced

     25        262,621        2.6     —          0.0     —    

4Q 2019 (4)

     12        52,705        0.5     2,512,326        0.5     47.67  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total 2019

     12        52,705        0.5     2,512,326        0.5     47.67  

1Q 2020

     30        92,373        0.9     6,719,616        1.2     72.74  

2Q 2020

     39        370,671        3.7     20,254,191        3.7     54.64  

3Q 2020

     32        162,334        1.6     9,507,089        1.7     58.56  

4Q 2020

     23        144,394        1.4     8,357,127        1.5     57.88  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total 2020

     124        769,772        7.6     44,838,023        8.1     58.25  

2021

     104        660,924        6.5     38,190,079        6.9     57.78  

2022

     110        570,712        5.6     36,716,025        6.6     64.33  

2023

     86        684,157        6.7     42,811,151        7.7     62.58  

2024

     84        806,258        8.0     48,199,253        8.7     59.78  

2025

     68        449,796        4.4     33,119,723        6.0     73.63  

2026

     55        730,874        7.2     40,651,456        7.3     55.62  

2027

     46        541,363        5.3     32,345,164        5.8     59.75  

2028

     28        1,038,287        10.2     56,895,634        10.3     54.80  

2029

     34        855,645        8.4     60,777,278        11.0     71.03  

Thereafter

     65        1,821,580        18.2     117,761,084        21.2     65.65  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total

     841        10,138,057        100.0   $ 554,817,196        100.0   $ 61.77  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Manhattan Office Properties (5)

                                       

Available

     —          553,707        7.3   $ —          0.0   $ —    

Signed leases not commenced

     19        218,629        2.9     —          0.0     —    

4Q 2019 (4)

     10        29,763        0.4     1,618,591        0.4     54.38  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total 2019

     10        29,763        0.4     1,618,591        0.4     54.38  

1Q 2020

     19        53,312        0.7     3,032,599        0.8     56.88  

2Q 2020

     27        242,738        3.2     13,400,073        3.4     55.20  

3Q 2020

     26        150,443        2.0     8,460,582        2.1     56.24  

4Q 2020

     18        111,753        1.5     5,490,598        1.4     49.13  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total 2020

     90        558,246        7.4     30,383,852        7.7     54.43  

2021

     66        419,381        5.5     23,884,192        6.0     56.95  

2022

     81        380,806        5.0     22,575,532        5.7     59.28  

2023

     63        513,024        6.8     30,207,994        7.6     58.88  

2024

     61        569,494        7.5     32,968,415        8.3     57.89  

2025

     44        291,977        3.9     18,270,905        4.6     62.58  

2026

     35        519,454        6.9     29,833,963        7.5     57.43  

2027

     33        407,276        5.4     23,056,903        5.8     56.61  

2028

     18        948,934        12.5     52,754,107        13.3     55.59  

2029

     23        629,262        8.3     36,879,869        9.3     58.61  

Thereafter

     47        1,533,298        20.2     92,989,234        23.8     60.65  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total Manhattan office properties

     590        7,573,251        100.0   $ 395,423,557        100.0   $ 58.14  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Notes:

 

(1)

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

(2)

Excludes (i) 193,268 rentable square feet of space across the Company portfolio attributable to building management use and tenant amenities and (ii) 79,613 square feet of space attributable to the Company’s observatory.

(3)

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

(4)

Represents leases that are included in occupancy as of December 31, 2019 and expire on December 31, 2019.

(5)

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

 

Page 11


LOGO   
   Fourth Quarter 2019
   Tenant Lease Expirations
   (unaudited)

 

 

                   Percent of                     
            Rentable      Portfolio                  Annualized  
     Number      Square      Rentable            Percent of     Rent Per  
Greater New York Metropolitan    of Leases      Feet      Square Feet     Annualized      Annualized     Rentable  

Area Office Properties

   Expiring (1)      Expiring (2)      Expiring     Rent (3)      Rent     Square Foot  

Available

     —          290,105        15.7   $ —          0.0   $ —    

Signed leases not commenced

     3        23,790        1.3     —          0.0     —    

4Q 2019 (4)

     2        22,942        1.2     893,735        1.4     38.96  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total 2019

     2        22,942        1.2     893,735        1.4     38.96  

1Q 2020

     7        17,148        0.9     697,736        1.1     40.69  

2Q 2020

     9        117,062        6.3     6,266,163        9.7     53.53  

3Q 2020

     4        8,391        0.5     399,028        0.6     47.55  

4Q 2020

     3        23,076        1.2     1,026,443        1.6     44.48  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total 2020

     23        165,677        9.0     8,389,370        13.0     50.64  

2021

     30        211,463        11.4     9,229,602        14.3     43.65  

2022

     20        131,159        7.1     5,033,664        7.8     38.38  

2023

     13        116,429        6.3     5,625,440        8.7     48.32  

2024

     13        211,452        11.4     9,454,115        14.6     44.71  

2025

     17        124,824        6.8     4,170,289        6.5     33.41  

2026

     11        136,739        7.4     5,443,406        8.4     39.81  

2027

     8        77,821        4.2     2,863,088        4.4     36.79  

2028

     6        81,366        4.4     2,924,296        4.5     35.94  

2029

     5        128,301        6.9     5,011,126        7.8     39.06  

Thereafter

     5        125,159        6.9     5,541,715        8.6     44.28  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total greater New York metropolitan area office properties

     156        1,847,227        100.0   $ 64,579,846        100.0   $ 42.12  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 
                            

Retail Properties

              

Available

     —          49,551        6.9   $ —          0.0   $ —    

Signed leases not commenced

     3        20,202        2.8     —          0.0     —    

4Q 2019 (4)

     —          —          0.0     —          0.0     —    
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total 2019

     —          —          0.0     —          0.0     —    

1Q 2020

     4        21,913        3.1     2,989,281        3.2     136.42  

2Q 2020

     3        10,871        1.5     587,955        0.6     54.08  

3Q 2020

     2        3,500        0.5     647,479        0.7     184.99  

4Q 2020

     2        9,565        1.3     1,840,086        1.9     192.38  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total 2020

     11        45,849        6.4     6,064,801        6.4     132.28  

2021

     8        30,080        4.2     5,076,285        5.4     168.76  

2022

     9        58,747        8.2     9,106,829        9.6     155.02  

2023

     10        54,704        7.6     6,977,717        7.4     127.55  

2024

     10        25,312        3.5     5,776,723        6.1     228.22  

2025

     7        32,995        4.6     10,678,529        11.3     323.64  

2026

     9        74,681        10.4     5,374,087        5.7     71.96  

2027

     5        56,266        7.8     6,425,173        6.8     114.19  

2028

     4        7,987        1.1     1,217,231        1.3     152.40  

2029

     6        98,082        13.7     18,886,283        19.9     192.56  

Thereafter

     13        163,123        22.8     19,230,135        20.1     117.89  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total retail properties

     95        717,579        100.0   $ 94,813,793        100.0   $ 146.36  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Notes:

 

(1)

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

(2)

Excludes (i) 193,268 rentable square feet of space across the Company portfolio attributable to building management use and tenant amenities and (ii) 79,613 square feet of space attributable to the Company’s observatory.

(3)

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

(4)

Represents leases that are included in occupancy as of December 31, 2019 and expire on December 31, 2019.

(5)

Represents two license agreements.

 

Page 12


LOGO   
   Fourth Quarter 2019
   Tenant Lease Expirations
   (unaudited)

 

 

            Percent of                     
            Rentable      Portfolio                  Annualized  
     Number      Square      Rentable            Percent of     Rent Per  
     of Leases      Feet      Square Feet     Annualized      Annualized     Rentable  

Empire State Building Office (1)

   Expiring (2)      Expiring (3)      Expiring     Rent (4) (5)      Rent     Square Foot  

Available

     —          102,923        3.8   $ —          0.0   $ —    

Signed leases not commenced

     3        32,381        1.2     —          0.0     —    

4Q 2019 (6)

     1        3,045        0.1     205,590        0.1     67.52  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total 2019

     1        3,045        0.1     205,590        0.1     67.52  

1Q 2020

     5        15,872        0.6     727,287        0.5     45.82  

2Q 2020

     7        193,044        7.1     10,415,976        6.7     53.96  

3Q 2020

     7        35,445        1.3     2,142,269        1.4     60.44  

4Q 2020

     6        37,592        1.4     1,997,247        1.3     53.13  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total 2020

     25        281,953        10.4     15,282,779        9.8     54.20  

2021

     18        100,971        3.7     5,926,900        3.8     58.70  

2022

     23        118,751        4.4     7,537,771        4.9     63.48  

2023

     21        105,319        3.9     6,941,595        4.5     65.91  

2024

     18        227,351        8.4     14,198,337        9.1     62.45  

2025

     12        96,753        3.6     6,348,452        4.1     65.62  

2026

     10        132,344        4.9     8,221,791        5.3     62.12  

2027

     8        29,184        1.1     1,762,316        1.1     60.39  

2028

     4        545,713        20.1     30,765,395        19.8     56.38  

2029

     7        282,020        10.4     17,327,003        11.2     61.44  

Thereafter

     21        652,455        24.0     40,665,182        26.3     62.33  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total Empire State Building office

     171        2,711,163        100.0   $ 155,183,111        100.0   $ 60.25  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

 

            Annualized             Percent of  
     Annualized      Expense      Annualized      Annualized  

Empire State Building Broadcasting Licenses and Leases

   Base Rent (7)      Reimbursements      Rent (4)      Rent  

4Q 2019 (6)

   $ 31,710      $ 9,350      $ 41,060        0.3
  

 

 

    

 

 

    

 

 

    

 

 

 

Total 2019

     31,710        9,350        41,060        0.3

1Q 2020

     —          —          —          0.0

2Q 2020

     137,188        30,457        167,645        1.1

3Q 2020

     —          —          —          0.0

4Q 2020

     99,320        31,212        130,532        0.9
  

 

 

    

 

 

    

 

 

    

 

 

 

Total 2020

     236,508        61,669        298,177        2.0

2021

     55,685        95,592        151,277        1.0

2022

     1,687,610        419,185        2,106,795        14.4

2023

     82,480        24,996        107,476        0.7

2024

     65,000        35,789        100,789        0.7

2025

     1,533,492        178,579        1,712,071        11.7

2026

     807,668        82,290        889,958        6.1

2027

     787,969        76,331        864,300        5.9

2028

     248,614        14,028        262,642        1.8

2029

     —          —          —          0.0

Thereafter

     7,134,396        956,421        8,090,817        55.4
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Empire State Building broadcasting licenses and leases

   $ 12,671,132      $ 1,954,230      $ 14,625,362        100.0
  

 

 

    

 

 

    

 

 

    

 

 

 

Notes:

 

(1)

Excludes retail space, broadcasting licenses and observatory operations

(2)

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

(3)

Excludes 52,508 rentable square feet of space attributable to building management use.

(4)

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

(5)

Includes approximately $5.1 million of annualized rent related to physical space occupied by broadcasting tenants for their broadcasting operations. Does not include license fees charged to broadcasting tenants.

(6)

Represents leases that are included in occupancy as of December 31, 2019 and expire on December 31, 2019.

(7)

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

 

Page 13


LOGO   
   Fourth Quarter 2019
   20 Largest Tenants and Portfolio Tenant Diversification by Industry
   (unaudited)

 

 

            Weighted             Percent of               
            Average      Total      Portfolio            Percent of  
            Remaining      Occupied      Rentable            Portfolio  
          Lease      Lease      Square      Square     Annualized      Annualized  

20 Largest Tenants

   Property    Expiration (1)      Term(2)      Feet (3)      Feet (4)     Rent (5)      Rent (6)  

1. Global Brands Group

   ESB, 1333 B’Way      Oct. 2023 - Oct. 2028        8.1 years        668,942        6.6   $ 36,579,836        6.6

2. LinkedIn

   ESB      Aug. 2036        16.7 years        312,947        3.1     18,434,225        3.3

3. Coty

   ESB      Apr. 2020 - Jan. 2030        5.3 years        312,471        3.1     17,712,823        3.2

4. PVH Corp.

   501 Seventh Avenue      Oct. 2028        8.8 years        237,281        2.3     11,716,228        2.1

5. Sephora

   112 West 34th Street      Jan. 2029        9.1 years        11,334        0.1     10,468,996        1.9

6. Li & Fung

   1359 Broadway      Oct. 2021 - Oct. 2027        4.3 years        149,436        1.5     7,701,934        1.4

7. Signature Bank

   1333 & 1400
Broadway
     Jul. 2030 - Apr. 2035        14.8 years        124,884        1.2     7,540,459        1.4

8. Urban Outfitters

   1333 Broadway      Sept. 2029        9.8 years        56,730        0.6     7,367,374        1.3

9. Macy’s

   111 West 33rd
Street
     May 2030        10.4 years        131,117        1.3     7,157,511        1.3

10. Footlocker

   112 West 34th Street      Sept. 2031        11.8 years        34,192        0.3     6,898,262        1.2

11. Federal Deposit Insurance Corp.

   ESB      Dec. 2024        5.0 years        119,226        1.2     6,837,182        1.2

12. Duane Reade

   ESB, 1350 B’Way,
250 West 57th
    
Feb. 2021 - Sept.
2027
 
 
     4.9 years        47,541        0.5     6,704,508        1.2

13. HNTB Corporation

   ESB      Feb. 2029        9.2 years        105,143        1.0     6,666,632        1.2

14. The Interpublic Group of Co’s, Inc.

   111 West 33rd St &
1400 B’way
     Jul. 2024 - Feb. 2025        4.8 years        124,884        1.2     6,443,584        1.2

15. Legg Mason

   First Stamford Place      Sept. 2024        4.8 years        137,583        1.4     6,407,814        1.2

16. Shutterstock

   ESB      Apr. 2029        9.3 years        104,386        1.0     5,953,855        1.1

17. Fragomen

   1400 Broadway      Feb. 2035        15.2 years        107,680        1.1     5,922,400        1.1

18. WDFG North America

   ESB      Dec. 2025        6.0 years        5,300        0.1     5,863,030        1.1

19. The Michael J. Fox Foundation

   111 West 33rd
Street
     Nov. 2029        9.9 years        86,492        0.9     5,390,818        1.0

20. ASCAP

   250 West 57th Street      Aug. 2034        14.7 years        87,943        0.9     5,345,814        1.0
        

 

 

    

 

 

   

 

 

    

 

 

 

Total

           2,965,512        29.4   $ 193,113,285        35.0
        

 

 

    

 

 

   

 

 

    

 

 

 

Notes:

 

(1)

Expiration dates are per lease and do not assume exercise of renewal or extension options. For tenants with more than two leases, the lease expiration is shown as a range.

(2)

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

(3)

Based on leases signed and commenced as of December 31, 2019.

(4)

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

(5)

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

(6)

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

Portfolio Tenant Diversification by Industry (based on annualized rent)

 

LOGO

 

Page 14


LOGO   
   Fourth Quarter 2019
   Capital Expenditures and Redevelopment Program and Leasing Opportunity
   (unaudited and dollars in thousands)

 

 

     Three Months Ended  
Capital expenditures    December 31,
2019
     September 30,
2019
     June 30,
2019
     March 31,
2019