What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-08-06 compared with 2025-05-07 · 194 added, 147 removed, 688 unchanged (33% of the section changed)

2 unchanged sentences

Condensed Consolidated Balance Sheets

(amounts in thousands, except per unit amounts) March 31, 2025 December 31, 2024

(amounts in thousands, except per unit amounts) June 30, 2025 December 31, 2024

ASSETS (unaudited)

50 unchanged sentences

Condensed Consolidated Statements of Operations

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(amounts in thousands, except per unit amounts) 2025 2024 2025 2024

22 unchanged sentences

Income before income taxes 11,863 29,305 27,022 38,865

Income tax benefit 619 655

Income tax (expense) benefit ( 478 ) ( 750 ) 141 ( 95 )

Net income 11,385 28,555 27,163 38,770

12 unchanged sentences

Condensed Consolidated Statements of Comprehensive Income

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(amounts in thousands) 2025 2024 2025 2024

11 unchanged sentences

Condensed Consolidated Statements of Capital

For The Three Months Ended March 31, 2025 and 2024

For The Three Months Ended June 30, 2025 and 2024

Series PR Operating Partnership Units Series ES Operating Partnership Units Limited Partners Series 60 Operating Partnership Units Limited Partners Series 250 Operating Partnership Units Limited Partners

1 unchanged sentence

(amounts in thousands) Private Perpetual Preferred Units Private Perpetual Preferred Unitholders Operating Partnership Units Operating Partnership Unitholders Operating Partnership Units Operating Partnership Unitholders Operating Partnership Units Operating Partnership Unitholders Operating Partnership Units Operating Partnership Unitholders Operating Partnership Units Operating Partnership Unitholders Non-controlling Interest in Other Partnerships Total Capital

Balance at March 31, 2025 6,224 $ 29,940 168,070 $ 1,032,060 85,866 $ 714,575 17,869 $ 7,017 4,562 $ 1,430 2,365 $ 853 $ — $ 1,785,875

Conversion of operating partnership units to ESRT Partner's Capital — — 1,539 8,401 ( 984 ) ( 8,192 ) ( 386 ) ( 152 ) ( 102 ) ( 33 ) ( 67 ) ( 24 ) — —

Repurchases of common units — — ( 310 ) ( 2,148 ) — — — — — — — — — ( 2,148 )

Equity compensation — — ( 23 ) 534 185 6,364 — — — — — — — 6,898

Distributions — ( 1,051 ) — ( 5,919 ) — ( 2,985 ) — ( 614 ) — ( 157 ) — ( 80 ) — ( 10,806 )

Net income — 1,051 — 6,519 — 2,853 — 692 — 176 — 94 — 11,385

Other comprehensive loss — — — ( 1,238 ) — ( 536 ) — ( 131 ) — ( 33 ) — ( 18 ) — ( 1,956 )

Balance at June 30, 2025 6,224 $ 29,940 169,276 $ 1,038,209 85,067 $ 712,079 17,483 $ 6,812 4,460 $ 1,383 2,298 $ 825 $ — $ 1,789,248

General Partner Limited Partners

Balance at March 31, 2024 6,224 $ 29,940 164,798 $ 996,122 82,266 $ 692,575 19,387 $ 4,722 4,991 $ 863 2,573 $ 512 $ — $ 1,724,734

Conversion of operating partnership units to ESRT Partner's Capital — — 697 1,966 ( 220 ) ( 1,849 ) ( 339 ) ( 89 ) ( 102 ) ( 20 ) ( 36 ) ( 8 ) — —

Repurchases of common units — — — — — — — — — — — — — —

Equity compensation — — ( 30 ) 541 192 5,847 — — — — — — — 6,388

Distributions — ( 1,051 ) — ( 5,787 ) — ( 2,878 ) — ( 670 ) — ( 172 ) — ( 89 ) — ( 10,647 )

Net income — 1,051 — 17,071 — 7,636 — 1,999 — 523 — 275 — 28,555

Other comprehensive income — — — 1,366 — 602 — 154 — 42 — 22 — 2,186

Balance at June 30, 2024 6,224 $ 29,940 165,465 $ 1,011,279 82,238 $ 701,933 19,048 $ 6,116 4,889 $ 1,236 2,537 $ 712 $ — $ 1,751,216

Empire State Realty OP, L.P.

Condensed Consolidated Statements of Capital

For The Six Months Ended June 30, 2025 and 2024

General Partner Limited Partners

Balance at December 31, 2024

6 unchanged sentences

Other comprehensive loss — — — ( 4,472 ) — ( 1,987 ) — ( 477 ) — ( 121 ) — ( 64 ) — ( 7,121 )

Balance at March 31, 2025 6,224 $ 29,940 168,070 $ 1,032,060 85,866 $ 714,575 17,869 $ 7,017 4,562 $ 1,430 2,365 $ 853 $ — $ 1,785,875

Balance at June 30, 2025

6,224 $ 29,940 169,276 $ 1,038,209 85,067 $ 712,079 17,483 $ 6,812 4,460 $ 1,383 2,298 $ 825 $ — $ 1,789,248

10 unchanged sentences

Other comprehensive income — — — 5,088 — 2,174 — 571 — 149 — 78 — 8,060

Balance at March 31, 2024 6,224 $ 29,940 164,798 $ 996,122 82,266 $ 692,575 19,387 $ 4,722 4,991 $ 863 2,573 $ 512 $ — $ 1,724,734

Balance at June 30, 2024

6,224 $ 29,940 165,465 $ 1,011,279 82,238 $ 701,933 19,048 $ 6,116 4,889 $ 1,236 2,537 $ 712 $ — $ 1,751,216

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

1 unchanged sentence

Condensed Consolidated Statements of Cash Flows

Three Months Ended March 31,

Six Months Ended June 30,

(amounts in thousands) 2025 2024

20 unchanged sentences

Additions to building and improvements ( 123,869 ) ( 96,517 )

Acquisition of real estate property ( 31,701 ) —

Acquisition of non-controlling interests in other partnerships — ( 14,226 )

Reduction of cash from derecognition of assets — ( 12,876 )

Post-closing costs from a prior period sale of property — ( 4,034 )

4 unchanged sentences

Condensed Consolidated Statements of Cash Flows (continued)

Three Months Ended March 31,

Six Months Ended June 30,

(amounts in thousands) 2025 2024

Cash Flows From Financing Activities

Proceeds from unsecured senior notes — 225,000

Repayment of unsecured senior notes ( 100,000 ) —

5 unchanged sentences

Deferred financing costs ( 434 ) ( 11,636 )

Repurchases of common units ( 2,148 ) —

Taxes paid on withholding shares ( 899 ) —

1 unchanged sentence

Distributions ( 19,488 ) ( 19,098 )

Net cash used in financing activities ( 232,973 ) ( 21,302 )

Net decrease in cash and cash equivalents and restricted cash ( 191,890 ) ( 21,645 )

Net cash (used in) provided by financing activities ( 246,866 ) 189,204

Net (decrease) increase in cash and cash equivalents and restricted cash ( 292,575 ) 169,592

Cash and cash equivalents and restricted cash—beginning of period 429,302 406,956

15 unchanged sentences

Contract asset ( 171,003 ) 166,955

Debt associated with property in receivership 177,667 —

Derecognition of debt associated with property in receivership 177,667 —

Derecognition of commercial real estate and other assets, net — ( 144,241 )

Accrued interest associated with property in receivership 6,080 1,589

9 unchanged sentences

ESRT), a NYC-focused real estate investment trust ("REIT") that owns and operates a portfolio of well-leased, top of tier, modernized, amenitized, and well-located office, retail, and multifamily assets, conducts all of its business and owns (either directly or through subsidiaries) substantially all of its assets.

ESRT’s flagship Empire State Building, the “World's Most Famous Building,” features its iconic Observatory that was declared the #1 Attraction in the World - and the #1 Attraction in the U.S.

for the third consecutive year – in Tripadvisor’s 2024 Travelers’ Choice Awards:

Best of the Best Things to Do.

ESRT’s flagship Empire State Building, the “World's Most Famous Building,” features its iconic Observatory.

The Company is a recognized leader in energy efficiency and indoor environmental quality.

As of March 31, 2025, our portfolio was comprised of approximately 7.9 million rentable square feet of office space, 0.8 million rentable square feet of retail space and 732 residential units.

As of June 30, 2025, our portfolio was comprised of approximately 7.8 million rentable square feet of office space, 0.8 million rentable square feet of retail space and 743 residential units.

Our office portfolio included 10 properties (including three long-term ground leasehold interests).

5 unchanged sentences

ESRT's Class A common stock, par value $ 0.01 per share, is listed on the New York Stock Exchange under the symbol "ESRT." ESRT, as the sole general partner in our Company, has responsibility and discretion in the management and control of our Company, and our limited partners, in such capacity, have no authority to transact business for, or participate in the management activities, of our Company.

As of March 31, 2025, ESRT owned approximately 60.3 % of our operating partnership units.

As of June 30, 2025, ESRT owned approximately 60.8 % of our operating partnership units.

Summary of Significant Accounting Policies

9 unchanged sentences

Our multifamily business experiences some seasonality based on general market trends in New York City – the winter months (November through January) are slower in terms of lease activity.

We seek to mitigate this by staggering lease terms such that

lease expirations are matched with seasonal demand.

We seek to mitigate this by staggering lease terms such that lease expirations are matched with seasonal demand.

We do not consider the balance of our business to be subject to material seasonal fluctuations.

4 unchanged sentences

The primary beneficiary is required to consolidate the VIE.

At December 31, 2024 we were the primary beneficiary of a variable interest in the intermediary entities that hold title to the assets of the North 6 th Street Collection acquired in 2024.

The intermediary entities were utilized to execute like-kind exchanges, most of which were completed as of March 31, 2025 and the intermediary entities assigned its ownership interests in these entities to us.

At March 31, 2025 we remained the primary beneficiary of a variable interest in one of the intermediary entities.

As of June 30, 2025, we had a variable interest in and are deemed to be the primary beneficiary of the intermediary entity that holds title to the North 6 th Street Collection assets acquired in June 2025, and as a result is consolidated in the financial statements of the Operating Partnership.

We will assess the accounting treatment for each investment we may have in the future.

11 unchanged sentences

Property Acquisitions

In June 2025, we closed on the acquisition of two retail properties on North 6 th Street in Williamsburg, Brooklyn for an aggregate purchase price of $ 31.0 million.

In September and October 2024, we closed on the acquisition of a portfolio of retail properties on North 6 th Street in Williamsburg, Brooklyn for an aggregate purchase price of $ 195.0 million.

The following table summarizes the purchase price allocation of this acquisition (amounts in thousands):

The following table summarizes the purchase price allocations of these acquisitions (amounts in thousands):

Property Date Acquired Land Building and Improvements Assets Liabilities Total

The North 6th Street Collection (1)

6/30/2025 $ 11,243 $ 20,458 $ — $ — $ 31,701

The North 6 th Street Collection (2)

September 2024-October 2024 44,924 146,826 10,984 ( 9,664 ) 193,070

(1) Includes two retail properties on North 6 th Street in Williamsburg, Brooklyn.

Includes capitalized transaction costs of $ 0.7 million.

(2) Includes nine retail properties on North 6 th Street in Williamsburg, Brooklyn.

Includes capitalized transaction costs of $( 1.9 ) million, net of certain closing credits.

In September 2024, we entered into an agreement for the acquisition of an additional retail property on North 6 th Street in Williamsburg, Brooklyn for approximately $ 30.0 million.

The acquisition is anticipated to close in mid-2025.

In March 2024, we executed a buyout of the 10 % non-controlling interest in two of our multifamily properties located at 561 10 th Avenue and 345 East 94 th Street in Manhattan for $ 14.2 million in cash and the assumption of $ 18.0 million of in-place debt.

1 unchanged sentence

Property Dispositions

The following table summarizes properties disposed of during the three and twelve months ended March 31, 2025 and December 31, 2024, respectively (amounts in thousands):

The following table summarizes properties disposed of during the six and twelve months ended June 30, 2025 and December 31, 2024, respectively (amounts in thousands):

Property Date of Disposal Sales Price (1)

1 unchanged sentence

First Stamford Place, Stamford, Connecticut 5/22/2024 $ 165,807 $ 26,472

(1) We transferred the First Stamford Place, which was encumbered by mortgage and other debt obligations of $ 165.8 million back to the lender in consensual foreclosure and recognized non-cash gain upon the disposition.

(1) We transferred First Stamford Place, which was encumbered by mortgage and other debt obligations of $ 165.8 million back to the lender in a consensual foreclosure and recognized non-cash gain upon the disposition.

(2) Gain on disposition includes $ 13.2 million and $ 13.3 million for the three months ended March 31, 2025 and the year ended December 31, 2024, respectively.

5 unchanged sentences

In connection with the completion of the consensual foreclosure we concluded that we are no longer the primary beneficiary of the entity that holds the First Stamford Place mezzanine debt obligation as we no longer have the power to direct the activities that most significantly impact the VIE's economic performance, nor the right to receive the benefits from the VIE.

As a result, the entity was deconsolidated during the three months ended March 31, 2025 and we recognized a gain of $ 13.2 million representing other obligations relating to First Stamford Place.

As a result, the entity was deconsolidated during the three months ended March 31, 2025 and we recognized a gain of $ 13.2 million from the mezzanine debt obligation.

The gain is included as a component of gain on disposition of property in the accompanying condensed consolidated statement of operations.

1 unchanged sentence

Deferred costs, net, consisted of the following:

(amounts in thousands) March 31, 2025 December 31, 2024

(amounts in thousands) June 30, 2025 December 31, 2024

Deferred leasing costs $ 224,592 $ 230,836

7 unchanged sentences

Acquired below-market ground leases, net, consisted of the following:

(amounts in thousands) March 31, 2025 December 31, 2024

(amounts in thousands) June 30, 2025 December 31, 2024

Acquired below-market ground leases $ 396,916 $ 396,916

2 unchanged sentences

Acquired below-market leases, net, consisted of the following:

(amounts in thousands) March 31, 2025 December 31, 2024

(amounts in thousands) June 30, 2025 December 31, 2024

Acquired below-market leases $ ( 56,359 ) $ ( 56,359 )

2 unchanged sentences

The total amortization related to deferred costs and acquired lease intangibles consisted of the following:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(amounts in thousands) 2025 2024 2025 2024

4 unchanged sentences

Amortization related to acquired in-place lease value 1,415 1,234 2,823 2,520

As of March 31, 2025 and December 31, 2024, we had goodwill of $ 491.5 million.

As of June 30, 2025 and December 31, 2024, we had goodwill of $ 491.5 million.

Goodwill was allocated $ 227.5 million to the Observatory reportable segment and $ 264.0 million to the real estate reportable segment.

2 unchanged sentences

Significant assumptions under the former included revenue and cost projections, weighted average cost of capital, long-term growth rate and income tax considerations while the latter included guideline company enterprise values, revenue multiples, EBITDA multiples and control premium rates.

Our methodology to review goodwill impairment, which included a significant amount of judgment and estimates, provided a reasonable basis to determine whether impairment had occurred.

Our methodology to review goodwill impairment, which included a significant amount of judgment and estimates, provided a reasonable basis to determine

whether impairment had occurred.

The quantitative analysis performed concluded the fair value of the reporting unit exceeds its carrying value.

2 unchanged sentences

Debt consisted of the following:

Principal Balance As of March 31, 2025

(amounts in thousands)

March 31, 2025 December 31, 2024 Stated

Principal Balance As of June 30, 2025

(amounts in thousands) June 30, 2025 December 31, 2024 Stated

Rate Effective

42 unchanged sentences

______________

(1) The effective rate is the yield as of March 31, 2025 and includes the stated interest rate, deferred financing cost amortization and interest associated with variable to fixed interest rate swap agreements.

(1) The effective rate is the yield as of June 30, 2025 and includes the stated interest rate, deferred financing cost amortization and interest associated with variable to fixed interest rate swap agreements.

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

(3) Assumes extension options are exercised for the 2029 maturities of the term loan, revolving credit facility and Metro Center mortgage.

(4) At March 31, 2025, we were in compliance with all debt covenants.

(4) At June 30, 2025, we were in compliance with all debt covenants.

Principal Payments

Aggregate required principal payments at March 31, 2025 are as follows (amounts in thousands):

Aggregate required principal payments at June 30, 2025 are as follows (amounts in thousands):

Year Amortization Maturities Total

8 unchanged sentences

Deferred financing costs, net, consisted of the following:

(amounts in thousands)

March 31, 2025 December 31, 2024

(amounts in thousands) June 30, 2025 December 31, 2024

Deferred financing costs, included as a component of net debt $ 16,121 $ 36,309

3 unchanged sentences

Total deferred financing costs, net $ 17,290 $ 18,977

Amortization expense related to deferred financing costs was $ 1.1 million and $ 1.0 million for the three months ended March 31, 2025 and 2024, respectively.

The total amortization expense related to deferred financing costs consisted of the following:

Three Months Ended June 30, Six Months Ended June 30,

(amounts in thousands) 2025 2024 2025 2024

Amortization of deferred financing costs $ 1,080 $ 1,050 $ 2,174 $ 2,069

Unsecured Revolving Credit and Term Loan Facilities

On March 8, 2024, through our Operating Partnership, we entered into a second amended and restated credit agreement with Bank of America, N.A., as administrative agent and the other lenders party thereto, that amends and restates the amended and restated credit agreement, dated August 29, 2017 which governs our senior unsecured revolving credit facility and term loan facility (collectively, the “BofA Credit Facilities”).

On May 28, 2025, we entered into a first amendment to our second amended and restated credit agreement, dated March 8, 2024, with Bank of Ameri ca, N.A., as administrative agent and other lenders party thereto, which governs our senior unsecured revolving credit facility and term loan facility (collectively, the “BofA Credit Facilities”).

The first amendment amends certain sustainability margin adjustment terms.

No other changes were made to the amount of the commitments, the maturity date of the outstanding loans or the covenants.

The BofA Credit Facilities are comprised of a $ 620.0 million senior unsecured revolving credit facility (the “Revolving Credit Facility”) and a $ 95.0 million term loan facility (the “BofA Term Loan Facility”).

We may request that the BofA Credit Facilities be increased through one or more increases in the Revolving Credit Facility or one or more increases in the BofA Term Loan Facility or the addition of new pari passu term loan tranches, for a maximum aggregate principal amount under the second amended and restated credit agreement not to exceed $ 1.5 billion.

The Revolving Credit Facility matures on March 8, 2029, inclusive of two six-month extension periods and replaced the existing revolving credit facility that was due to mature in March 2025.

The BofA Term Loan Facility matures on March 8, 2029, inclusive of two twelve-month extension periods and replaced the existing term loan facility that was due to mature in March 2025.

The Revolving Credit Facility matures on March 8, 2029, inclusive of two six-month extension periods.

The BofA Term Loan Facility matures on March 8, 2029, inclusive of two twelve-month extension periods.

Initial interest rates on the BofA Credit Facilities, which may change based on our leverage levels, are SOFR plus a benchmark adjustment of 10.0 basis points ("adjusted SOFR") plus 130 basis points for any drawn portion of the Revolving Credit Facility and adjusted SOFR plus 150 basis points for the BofA Term Loan Facility.

1 unchanged sentence

On March 18, 2025, we repaid the $ 120.0 million borrowings previously drawn on the Revolving Credit Facility.

As of March 31, 2025 , we had no borrowings under the Revolving Credit Facility and $ 95.0 million under the BofA Term Loan Facility.

On March 13, 2024, through our Operating Partnership, we entered into a third amendment to our credit agreement dated March 19, 2020 with Wells Fargo Bank, National Association, as administrative agent, and the other lenders party thereto, which governs a senior unsecured term loan facility (the “Wells Term Loan Facility”).

As of June 30, 2025 , we had no borrowings under the Revolving Credit Facility and $ 95.0 million under the BofA Term Loan Facility.

On March 13, 2024, we entered into a third amendment to our credit agreement dated March 19, 2020, with Wells Fargo Bank, National Association, as administrative agent, and the other lenders party thereto, which governs a senior

unsecured term loan facility (the “Wells Term Loan Facility”).

The Wells Term Loan Facility is in the original principal amount of $ 175.0 million and matures on December 31, 2026.

2 unchanged sentences

We may request the Wells Term Loan Facility be increased through one or more increases or the addition of new pari passu term loan tranches, for a maximum aggregate principal amount not to exceed $ 225.0 million.

As of March 31, 2025 , our borrowings amounted to $ 175.0 million under the Wells Term Loan Facility.

As of June 30, 2025 , our borrowings amounted to $ 175.0 million under the Wells Term Loan Facility.

The terms of both the BofA Credit Facilities and the Wells Term Loan Facility include customary covenants, including limitations on liens, investment, distributions, debt, fundamental changes, and transactions with affiliates and require certain customary financial reports.

1 unchanged sentence

The agreements governing both facilities also contain customary events of default (subject in certain cases to specified cure periods), including but not limited to non-payment, breach of covenants, representations or warranties, cross defaults, bankruptcy or other insolvency events, judgments, ERISA events, invalidity of loan documents, loss of REIT qualification, and occurrence of a change of control.

As of March 31, 2025, we were in compliance with these covenants.

As of June 30, 2025, we were in compliance with these covenants.

Senior Unsecured Notes

4 unchanged sentences

The agreements also contain customary events of default (subject in certain cases to specified cure periods), including but not limited to non-payment, breach of covenants, representations or warranties, cross defaults, bankruptcy or other insolvency events, judgments, ERISA events, the occurrence of certain change of control transactions and loss of REIT qualification.

As of March 31, 2025, we were in compliance with these covenants.

As of June 30, 2025, we were in compliance with these covenants.

Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consisted of the following:

(amounts in thousands)

March 31, 2025 December 31, 2024

(amounts in thousands) June 30, 2025 December 31, 2024

Capital expenditures included in accounts payable and accrued expenses $ 51,560 $ 73,535

Accounts payable and accrued expenses 49,033 54,779

Interest rate swap agreements liability 12 —

Accrued interest payable 3,710 3,702

8 unchanged sentences

We have agreements with our derivative counterparties that contain a provision where if we either default or are capable of being declared in default on any of our indebtedness, then we could also be declared in default on our derivative obligations.

As of March 31, 2025, we did no t have derivatives in a net liability position.

As of March 31, 2025 and December 31, 2024, we had interest rate swaps and caps with an aggregate notional value of $ 448.5 million and $ 664.0 million, respectively.

If we had breached any of these provisions, we could have been required to settle our obligations that were in a net

liability position under the agreements at their termination value of $ 12 thousand as of June 30, 2025, which includes accrued interest but excludes any adjustment for nonperformance risk.

As of June 30, 2025, we were in compliance with these provisions.

As of June 30, 2025 and December 31, 2024, we had interest rate swaps and caps with an aggregate notional value of $ 448.0 million and $ 664.0 million, respectively.

The notional value does not represent exposure to credit, interest rate or market risks.

As of March 31, 2025 and December 31, 2024, the fair value of our derivative instruments in an asset position amounted to $ 7.0 million and $ 13.1 million, respectively, which is included in prepaid expenses and other assets on the condensed consolidated balance sheet.

These interest rate swaps have been designated as cash flow hedges and hedge the variability in future cash flows associated with our existing variable-rate term loan facilities.

Interest rate caps not designated as hedges are not speculative and are used to manage our exposure to interest rate movements, but do not meet the strict hedge accounting requirements.

As of March 31, 2025 and 2024, our cash flow hedges are deemed highly effective.

A net unrealized gain (loss) of $( 5.2 ) million and $ 5.9 million for the three months ended March 31, 2025 and 2024, respectively, relating to both active and terminated hedges of interest rate risk, are reflected in the condensed consolidated statements of comprehensive income (loss).

As of June 30, 2025 and 2024, our cash flow hedges are deemed highly effective.

A net unrealized loss of $ 2.0 million and $ 7.1 million for the three and six months ended June 30, 2025, and a net unrealized gain of $ 2.2 million and $ 8.1 million for the three and six months ended June 30, 2024, respectively, relating to both active and terminated hedges of interest rate risk, are reflected in the condensed consolidated statements of comprehensive income (loss).

Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on the debt.

We estimate that $ 0.2 million net gain of the current balance held in accumulated other comprehensive income (loss) will be reclassified into interest expense within the next 12 months.

We estimate that $ 0.2 million net loss of the current balance held in accumulated other comprehensive income (loss) will be reclassified into interest expense within the next 12 months.

Cash payments and receipts related to our cash flow hedges are classified as operating activities and included within our disclosure of cash paid for interest on our condensed consolidated statements of cash flows, consistent with the classification of the hedged interest payments.

The table below summarizes the terms of agreements and the fair values of our derivative financial instruments:

(amounts in thousands, except percentages)

March 31, 2025 December 31, 2024

Derivative Notional Amount Receive Rate Pay Rate Effective Date Expiration Date Asset Liability Asset Liability

(amounts in thousands, except percentages) June 30, 2025 December 31, 2024

Derivative Notional Amount Receive Rate Pay Rate Effective Date Expiration Date Asset (1)

Liability (2)

Interest rate swap $ 36,820 70 % of 1 Month SOFR

14 unchanged sentences

$ 448,028 $ 4,205 $ ( 12 ) $ 13,098 $ —

(1) Included as a component of prepaid expenses and other assets on the condensed consolidated balance sheets.

(2) Included as a component of accounts payable and accrued expenses on the condensed consolidated balance sheets.

The table below shows the effect of our derivative financial instruments designated as cash flow hedges on accumulated other comprehensive income (loss):

Three Months Ended

(amounts in thousands) March 31, 2025 March 31, 2024

Three Months Ended Six Months Ended

(amounts in thousands) June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024

Amount of (loss) gain recognized in other comprehensive income (loss) $ ( 1,472 ) $ 2,853 $ ( 5,588 ) $ 11,051

1 unchanged sentence

The table below shows the effect of our derivative financial instruments designated as cash flow hedges on the condensed consolidated statements of operations:

Three Months Ended

(amounts in thousands) March 31, 2025 March 31, 2024

Three Months Ended Six Months Ended

(amounts in thousands) June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024

Total interest expense presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded $ ( 25,126 ) $ ( 25,323 ) $ ( 52,064 ) $ ( 50,451 )

1 unchanged sentence

Fair Valuation

The estimated fair values at March 31, 2025 and December 31, 2024 were determined by management, using available market information and appropriate valuation methodologies.

The estimated fair values at June 30, 2025 and December 31, 2024 were determined by management, using available market information and appropriate valuation methodologies.

Considerable judgment is necessary to interpret market data and develop estimated fair value.

2 unchanged sentences

The fair value of derivative instruments is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative.

Although the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by ourselves and our

counterparties.

The impact of such credit valuation adjustments, determined based on the fair value of each individual contract, was not significant to the overall valuation.

2 unchanged sentences

The following tables summarize the carrying and estimated fair values of our financial instruments:

March 31, 2025

June 30, 2025

Estimated Fair Value

2 unchanged sentences

Interest rate swaps and caps included in prepaid expenses and other assets $ 4,205 $ 4,205 $ — $ 4,205 $ —

Interest rate swaps included in accounts payable and accrued expenses 12 12 — 12 —

Mortgage notes payable 691,440 644,870 — — 644,870

10 unchanged sentences

Unsecured revolving credit facility 120,000 120,000 — — 120,000

Disclosure about the fair value of financial instruments is based on pertinent information available to us as of March 31, 2025 and December 31, 2024.

Disclosure about the fair value of financial instruments is based on pertinent information available to us as of June 30, 2025 and December 31, 2024.

Although we are not aware of any factors that would significantly affect the reasonable fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since that date and current estimates of fair value may differ significantly from the amounts presented herein.

2 unchanged sentences

The leases provide for base monthly rentals and reimbursements for real estate taxes, escalations linked to the consumer price index or common area maintenance known as operating expense escalation.

Tenant expense reimbursements are reflected in our March 31, 2025 and 2024 condensed consolidated statements of operations as rental revenue.

Tenant expense reimbursements are reflected in our June 30, 2025 and 2024 condensed consolidated statements of operations as rental revenue.

Rental revenue includes fixed and variable payments.

1 unchanged sentence

The components of rental revenue consisted of the following:

Three Months Ended

(amounts in thousands) March 31, 2025 March 31, 2024

Three Months Ended Six Months Ended

(amounts in thousands) June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024

Fixed payments $ 133,873 $ 136,235 $ 269,829 $ 272,588

1 unchanged sentence

Total rental revenue $ 153,540 $ 152,470 $ 308,082 $ 306,352

As of March 31, 2025, we were entitled to the following future contractual minimum lease payments (excluding tenant expense reimbursements) on non-cancellable operating leases to be received which expire on various dates through 2054 (amounts in thousands):

As of June 30, 2025, we were entitled to the following future contractual minimum lease payments (excluding tenant expense reimbursements) on non-cancellable operating leases to be received which expire on various dates through 2054 (amounts in thousands):

Remainder of 2025

3 unchanged sentences

The preceding table is prepared assuming such options are not exercised.

As of March 31, 2025, the future lease payments to be received for signed leases that have not yet commenced was approximately $ 590.7 million.

As of June 30, 2025, the future lease payments to be received for signed leases that have not yet commenced was approximately $ 570.1 million.

We determine if an arrangement is a lease at inception.

Our operating lease agreements relate to three ground lease assets and are reflected in right-of-use assets and lease liabilities of $ 28.1 million as of March 31, 2025 and right-of-use assets and lease liabilities of $ 28.2 million as of December 31, 2024 in our condensed consolidated balance sheets.

Our operating lease agreements relate to three ground lease assets and are reflected in right-of-use assets and lease liabilities of $ 28.1 million as of June 30, 2025 and right-of-use assets and lease liabilities of $ 28.2 million as of December 31, 2024 in our condensed consolidated balance sheets.

Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease.

4 unchanged sentences

2016-02, Leases (Topic 842), in determining the present value of lease payments.

The weighted average incremental borrowing rate used to calculate the right-of-use assets and lease liabilities as of March 31, 2025 was 4.5 %.

The weighted average incremental borrowing rate used to calculate the right-of-use assets and lease liabilities as of June 30, 2025 was 4.5 %.

Rent expense for lease payments related to our operating leases is recognized on a straight-line basis over the non-cancellable term of the leases.

The weighted average remaining lease term as of March 31, 2025 was 45.3 years.

As of March 31, 2025, the following table summarizes our future minimum lease payments discounted by our incremental borrowing rates to calculate the lease liabilities of our leases (amounts in thousands):

The weighted average remaining lease term as of June 30, 2025 was 45.0 years.

As of June 30, 2025, the following table summarizes our future minimum lease payments discounted by our incremental borrowing rates to calculate the lease liabilities of our leases (amounts in thousands):

Remainder of 2025

5 unchanged sentences

Legal Proceedings

Except as described below, as of March 31, 2025, we were not involved in any material litigation, nor, to our knowledge, was any material litigation threatened against us or our properties, other than routine litigation arising in the ordinary course of business such as disputes with tenants.

Except as described below, as of June 30, 2025, we were not involved in any material litigation, nor, to our knowledge, was any material litigation threatened against us or our properties, other than routine litigation arising in the ordinary course of business such as disputes with tenants.

We believe that the costs and related liabilities, if any, which may result from such actions will not materially affect our condensed consolidated financial position, operating results or liquidity.

19 unchanged sentences

On March 13, 2025, the appeals court affirmed.

The Respondents have filed a motion for reargument or, in the alternative, leave to appeal to the New York Court of Appeals.

The Respondents have filed a motion for leave to appeal to the New York Court of Appeals.

In addition, certain of the Claimants in the federal court action brought to toll the statute of limitations and sought to pursue claims in that case against the Respondents.

8 unchanged sentences

Unfunded Capital Expenditures

At March 31, 2025, we estimate that we will incur approximately $ 110.9 million of capital expenditures (including tenant improvements and leasing commissions) on our properties pursuant to existing lease agreements.

At June 30, 2025, we estimate that we will incur approximately $ 103.9 million of capital expenditures (including tenant improvements and leasing commissions) on our properties pursuant to existing lease agreements.

We expect to fund these capital expenditures with operating cash flow, cash on hand and other borrowings.

3 unchanged sentences

Financial instruments that subject us to credit risk consist primarily of cash and cash equivalents, restricted cash, short-term investments, tenant and other receivables and deferred rent receivables.

At March 31, 2025, we held on deposit at various major financial institutions cash and cash equivalents and restricted cash balances in excess of amounts insured by the Federal Deposit Insurance Corporation.

At June 30, 2025, we held on deposit at various major financial institutions cash and cash equivalents and restricted cash balances in excess of amounts insured by the Federal Deposit Insurance Corporation.

Asset Retirement Obligations

We are required to accrue costs that we are legally obligated to incur on retirement of our properties which result from acquisition, construction, development and/or normal operation of such properties.

Retirement includes sale, abandonment or

disposal of a property.

Retirement includes sale, abandonment or disposal of a property.

Under that standard, a conditional asset retirement obligation represents a legal obligation to perform an asset retirement activity in which the timing and/or method of settlement is conditional on a future event that may or may not be within a company’s control and a liability for a conditional asset retirement obligation must be recorded if the fair value of the obligation can be reasonably estimated.

Environmental site assessments and investigations have identified asbestos or asbestos-containing building materials in certain of our properties.

As of March 31, 2025, management has no plans to remove or alter these properties in a manner that would trigger federal and other applicable regulations for asbestos removal, and accordingly, the obligations to remove the asbestos or asbestos-containing building materials from these properties have indeterminable settlement dates.

As of June 30, 2025, management has no plans to remove or alter these properties in a manner that would trigger federal and other applicable regulations for asbestos removal, and accordingly, the obligations to remove the asbestos or asbestos-containing building materials from these properties have indeterminable settlement dates.

As such, we are unable to reasonably estimate the fair value of the associated conditional asset retirement obligation.

7 unchanged sentences

In addition to potential liability for cleanup costs, private plaintiffs may bring claims for personal injury, property damage or for similar reasons.

Environmental laws also may create liens on contaminated sites in favor of the government for damages and costs it incurs to address such contamination.

Environmental laws also may create liens on contaminated sites in favor of the government for damages and

costs it incurs to address such contamination.

Moreover, if contamination is discovered on our properties, environmental laws may impose restrictions on the manner in which that property may be used or how businesses may be operated on that property.

15 unchanged sentences

For example, environmental site assessments have identified asbestos or asbestos-containing material (“ACM”) in certain of our properties, and it is possible that other properties that we currently own or operate or acquire in the future contain ACM.

Environmental and health and safety laws require that ACM be properly managed and maintained and may impose fines or

penalties on owners, operators or employers for non-compliance with those requirements.

Environmental and health and safety laws require that ACM be properly managed and maintained and may impose fines or penalties on owners, operators or employers for non-compliance with those requirements.

In addition, we may be subject to liability for personal injury or property damage sustained as a result of releases of ACM into the environment.

8 unchanged sentences

We do not believe we have any material adverse indoor air quality or water quality issues at our properties.

As of March 31, 2025, management believes that there are no obligations related to environmental remediation other than maintaining the affected sites in conformity with the relevant authority’s mandates and filing the required documents.

As of June 30, 2025, management believes that there are no obligations related to environmental remediation other than maintaining the affected sites in conformity with the relevant authority’s mandates and filing the required documents.

All such maintenance costs are expensed as incurred.

2 unchanged sentences

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

As of March 31, 2025, there were 167,093,536 shares of Class A common stock, 976,082 shares of Class B common stock and 110,662,788 operating partnership units outstanding.

As of June 30, 2025, there were 168,301,105 shares of Class A common stock, 974,628 shares of Class B common stock and 109,308,532 operating partnership units outstanding.

The controlling interest of 60.8 % is owned by ESRT.

7 unchanged sentences

The authorization does not obligate ESRT or us to acquire any particular amount of securities, and the program may be suspended or discontinued at ESRT's and our discretion without prior notice.

As of March 31, 2025, we had $ 500.0 million remaining of the authorized repurchase amount.

There were no repurchases of equity securities during the three months ended March 31, 2025.

Subsequent to March 31, 2025 through May 7, 2025, ESRT repurchased $ 2.1 million of ESRT Class A common stock at a weighted average price of $ 6.90 per share.

The following table summarizes ESRT's repurchases of equity securities in each of the three months ended June 30, 2025 under the repurchase program described above:

Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plan Maximum Approximate Dollar Value Available for Future Purchase (in thousands)

April 1 - April 30, 2025 310,415 $ 6.92 310,415 $ 497,852

May 1 - May 31, 2025 — $ — — $ 497,852

June 1 - June 30, 2025 — $ — — $ 497,852

Private Perpetual Preferred Units

As of March 31, 2025, there were 4,664,038 Series 2019 Preferred Units ("Series 2019 Preferred Units") and 1,560,360 Series 2014 Private Perpetual Preferred Units ("Series 2014 Preferred Units") outstanding.

The Series 2019 Preferred Units have a liquidation preference of $ 13.52 per unit and are entitled to receive cumulative preferential annual cash

distributions of $ 0.70 per unit payable in arrears on a quarterly basis.

As of June 30, 2025, there were 4,664,038 Series 2019 Preferred Units ("Series 2019 Preferred Units") and 1,560,360 Series 2014 Private Perpetual Preferred Units ("Series 2014 Preferred Units") outstanding.

The Series 2019 Preferred Units have a liquidation preference of $ 13.52 per unit and are entitled to receive cumulative preferential annual cash distributions of $ 0.70 per unit payable in arrears on a quarterly basis.

The Series 2014 Preferred Units which have a liquidation preference of $ 16.62 per unit and are entitled to receive cumulative preferential annual cash distributions of $ 0.60 per unit payable in arrears on a quarterly basis.

2 unchanged sentences

The following is a summary of distribution activity:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(amounts in thousands) 2025 2024 2025 2024

11 unchanged sentences

In addition, shares of ESRT Class A common stock repurchased on the open market will not be added back to the shares of ESRT Class A common stock available for issuance under the 2024 Plan.

An aggregate of 11.0 million shares of ESRT common stock was authorized for issuance under awards granted pursuant to the 2024 Plan, and as of March 31, 2025 , 6.2 million shares of common stock remain available for future issuance.

An aggregate of 11.0 million shares of ESRT common stock was authorized for issuance under awards granted pursuant to the 2024 Plan, and as of June 30, 2025 , 6.0 million shares of common stock remain available for future issuance.

Long-term incentive plan ("LTIP") units are a special class of partnership interests.

5 unchanged sentences

Market and performance-based LTIPs receive 10 % of such distributions currently, unless and until such LTIP units are earned based on performance, at which time they will receive the accrued and unpaid 90 % and will commence receiving 100 % of such distributions thereafter.

In March 2025, we made grants of LTIP units to executive officers under the 2024 Plan, including:

(amounts in thousands, except units) Units Grant Date Fair Value

Time-based vesting LTIP units 1,399,681 $ 9,399

Market-based vesting LTIP units 1,462,922 $ 5,995

Performance-based vesting LTIP units 969,328 $ 5,995

In March 2025, we made grants of LTIP units and restricted stock to certain other employees under the 2024 Plan, including:

(amounts in thousands, except units) Units Grant Date Fair Value

Time-based vesting LTIP units 282,000 $ 2,104

Time-based vesting restricted stock 244,560 $ 1,956

Market-based vesting LTIP units 216,398 $ 1,043

Performance-based LTIP units 143,381 $ 1,043

The awards subject to time-based vesting vest ratably over a period of years, subject generally to the grantee's continued employment.

The vesting of the LTIP units subject to market-based vesting is based on the achievement of relative total stockholder return ("TSR") hurdles over a three-year performance period.

The vesting of the LTIP units subject to performance-based vesting is based on the achievement of (i) operational metrics over a one-year performance period, subject to a three-year absolute TSR modifier, and (ii) sustainability metrics over a three-year performance period.

In May 2025, we made grants of 185,280 LTIP units to our non-employee directors that are subject to time-based vesting with fair market values of $ 1.3 million.

Share-based compensation for time-based equity awards is measured at the fair value of the award on the date of grant and recognized as an expense on a straight-line basis over the shorter of (i) the stated vesting period, which is generally three , four or five years , or (ii) the period from the date of grant to the date the employee becomes retirement eligible for awards granted to non-named executive officer employees and awards granted before 2025 to named executive officers, which may occur upon grant.

5 unchanged sentences

Any forfeitures of share-based compensation awards are recognized as they occur.

In 2025, our Chief Executive Officer, Anthony E.

Malkin, waived the right to immediately vest unvested awards in the event of a voluntary termination following his retirement eligibility date for awards granted in 2024.

The amendment was recognized as Type I modification in accordance with ASC 718-20 that extends the requisite service period.

The applicable unamortized expense as of the modification date of $ 6.6 million will be recognized on a straight-line basis over the remaining applicable service periods of two to three years .

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

3 unchanged sentences

The expected growth rate of the stock prices over the performance period is determined with consideration of the risk-free rate as of the grant date.

For LTIP unit awards that are time or performance based, the fair value of the awards was estimated based on the fair value of our stock at the grant date discounted for the restriction period during which the LTIP units cannot be redeemed or transferred and the uncertainty regarding if, and when, the book capital account of the LTIP units will equal that of the common units.

For LTIP unit awards that are time or performance based, the fair value of the awards was

estimated based on the fair value of our stock at the grant date discounted for the restriction period during which the LTIP units cannot be redeemed or transferred and the uncertainty regarding if, and when, the book capital account of the LTIP units will equal that of the common units.

For restricted stock awards, the fair value of the awards is based on the market price of ESRT stock at the grant date.

LTIP units and ESRT restricted stock issued during the three months ended March 31, 2025 were valued at $ 27.5 million.

The weighted average per unit or share fair value was $ 5.84 for grants issued for the three months ended March 31, 2025.

LTIP units and ESRT restricted stock issued during the six months ended June 30, 2025 were valued at $ 28.9 million.

The weighted average per unit or share fair value was $ 5.89 for grants issued for the six months ended June 30, 2025.

The fair value per unit or share granted in 2025 was estimated on the respective dates of grant using the following assumptions:

3 unchanged sentences

Expected price volatility 35.0 % - 44.0 %

No other stock options, dividend equivalents, or stock appreciation rights were issued or outstanding during the three months ended March 31, 2025.

The following is a summary of ESRT restricted stock and LTIP unit activity for the three months ended March 31, 2025:

No stock options, dividend equivalents, or stock appreciation rights were issued or outstanding during the six months ended June 30, 2025.

The following is a summary of ESRT restricted stock and LTIP unit activity for the six months ended June 30, 2025:

Restricted Stock Time-based LTIPs Market-based LTIPs Performance-based LTIPs Weighted Average Grant Fair Value

4 unchanged sentences

Forfeited or unearned ( 27,124 ) — — ( 46,846 ) 7.91

Unvested balance at March 31, 2025

Unvested balance at June 30, 2025

619,432 4,121,028 3,967,586 2,914,800 $ 6.33

The time-based LTIPs and ESRT restricted stock awards granted to non-named executive officers or granted to certain named executive officers before 2025, are treated for accounting purposes as immediately vested upon the later of (i) the date the grantee attains the age of 65 , and (ii) the date on which grantee has first completed the requisite years of continuous service with our Company or its affiliates.

For award agreements that qualify, we recognize noncash compensation expense on the grant date for the time-based awards and ratably over the vesting period for the market-based and performance-based awards, and accordingly, we recognized $ 1.1 million and $ 0.7 million for the three months ended March 31, 2025 and 2024, respectively.

Unrecognized compensation expense was $ 5.6 million at March 31, 2025, which will be recognized over a weighted average period of 1.6 years.

For the remainder of the LTIP unit awards, we recognized noncash compensation expense ratably over the vesting period, and accordingly, we recognized noncash compensation expense of $ 3.9 million and $ 2.7 million for the three months ended March 31, 2025 and 2024, respectively.

Unrecognized compensation expense was $ 49.1 million at March 31, 2025, which will be recognized over a weighted average period of 2.9 years.

For award agreements that qualify, we recognize noncash compensation expense on the grant date for the time-based awards and ratably over the vesting period for the market-based and performance-based awards, and accordingly, we recognized $ 1.6 million and $ 2.7 million for the three and six months ended June 30, 2025, respectively, and $ 1.7 million and $ 2.4 million for the three and six months ended June 30, 2024, respectively.

Unrecognized compensation expense was $ 4.7 million at June 30, 2025, which will be recognized over a weighted average period of 1.4 years.

For the remainder of the LTIP unit awards, we recognized noncash compensation expense ratably over the vesting period, and accordingly, we recognized noncash compensation expense of $ 5.3 million and $ 9.2 million for the three and six months ended June 30, 2025, respectively, and $ 5.5 million and $ 8.2 million for the three and six months ended June 30, 2024, respectively.

Unrecognized compensation expense was $ 42.1 million at June 30, 2025, which will be recognized over a weighted average period of 2.8 years.

Earnings Per Unit

3 unchanged sentences

Earnings per unit is computed as follows:

Three Months Ended

(amounts in thousands, except per unit amounts)

March 31, 2025 March 31, 2024

Three Months Ended Six Months Ended

(amounts in thousands, except per unit amounts) June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024

Net income $ 11,385 $ 28,555 $ 27,163 $ 38,770

9 unchanged sentences

Diluted $ 0.04 $ 0.10 $ 0.09 $ 0.14

There were zero antidilutive shares and LTIP units for the three months ended March 31, 2025 and 2024.

There were zero antidilutive shares and LTIP units for the three and six months ended June 30, 2025 and 2024.

Related Party Transactions

Supervisory Fee Revenue

Since we became a public company, we have earned supervisory fees from entities affiliated with Anthony E.

Since ESRT became a public company, we have earned supervisory fees from entities affiliated with Anthony E.

Malkin, our Chairman and Chief Executive Officer.

These fees were $ 0.4 million and $ 0.2 million for the three months ended March 31, 2025 and 2024, respectively.

These fees were $ 0.3 million and $ 0.7 million for the three and six months ended June 30, 2025, respectively, and $ 0.2 million and $ 0.4 million for the three and six months ended June 30, 2024, respectively.

These fees are included within third-party management and other fees.

Property Management Fee Revenue

Since we became a public company, we have earned property management fees from entities affiliated with Anthony E.

These fees were $ 0.1 million and $ 0.1 million for the three months ended March 31, 2025 and 2024, respectively.

Since ESRT became a public company, we have earned property management fees from entities affiliated with Anthony E.

These fees were $ 0.1 million and $ 0.1 million for the three and six months ended June 30, 2025, respectively, and $ 0.1 million and $ 0.2 million for the three and six months ended June 30, 2024, respectively.

These fees are included within third-party management and other fees.

5 unchanged sentences

We also have agreements with these entities and excluded properties and businesses to provide them with general computer-related support services.

Total aggregate revenue was $ 0.1 million and $ 0.1 million for the three months ended March 31, 2025 and 2024, respectively.

Total aggregate revenue was $ 0.1 million and $ 0.2 million for the three and six months ended June 30, 2025, respectively, and $ 0.1 million and $ 0.2 million for the three and six months ended June 30, 2024, respectively.

One of ESRT's directors, Hannah Yang, is sister to Heela Yang, who is Founder and Chief Executive Officer of Sol de Janeiro USA, a tenant at One Grand Central Place — the lease commenced in April 2025 with a starting annualized rent of $ 3.5 million.

13 unchanged sentences

The following tables provide components of segment net income for each segment:

Three Months Ended March 31, 2025

(amounts in thousands)

Real Estate Observatory Intersegment Elimination Total

Three Months Ended June 30, 2025

(amounts in thousands) Real Estate Observatory Intersegment Elimination Total

Revenue, excluding third-party management and other fees $ 156,943 $ 33,899 $ — $ 190,842

Intercompany rental revenue 20,666 — ( 20,666 ) —

Total revenues 171,634 23,161 ( 15,160 ) 179,635

Total revenues, excluding third-party management and other fees 177,609 33,899 ( 20,666 ) 190,842

Segment operating expenses:

7 unchanged sentences

(1) Other segment expenses include real estate taxes, ground rent expense and intercompany rent expense.

Three Months Ended March 31, 2024

(amounts in thousands)

Real Estate Observatory Intersegment Elimination Total

Three Months Ended June 30, 2024

(amounts in thousands) Real Estate Observatory Intersegment Elimination Total

Revenue, excluding third-party management and other fees $ 155,043 $ 34,124 $ — $ 189,167

Intercompany rental revenue 20,980 — ( 20,980 ) —

Total revenues 172,385 24,596 ( 16,067 ) 180,914

Total revenues, excluding third-party management and other fees 176,023 34,124 ( 20,980 ) 189,167

Segment operating expenses:

7 unchanged sentences

(1) Other segment expenses include real estate taxes, ground rent expense and intercompany rent expense.

Six Months Ended June 30, 2025

(amounts in thousands) Real Estate Observatory Intersegment Elimination Total

Revenue, excluding third-party management and other fees $ 313,417 $ 57,060 $ — $ 370,477

Intercompany rental revenue 35,826 — ( 35,826 ) —

Total revenues, excluding third-party management and other fees 349,243 57,060 ( 35,826 ) 370,477

Operating expenses:

Property operating expenses 89,940 — — 89,940

Observatory expenses — 17,940 — 17,940

Other segment expenses 1

70,320 35,826 ( 35,826 ) 70,320

Total segment operating expenses 160,260 53,766 ( 35,826 ) 178,200

Net operating income $ 188,983 $ 3,294 $ — $ 192,277

(1) Other segment expenses include real estate taxes, ground rent expense and intercompany rent expense.

Six Months Ended June 30, 2024

(amounts in thousands) Real Estate Observatory Intersegment Elimination Total

Revenue, excluding third-party management and other fees $ 311,361 $ 58,720 $ — $ 370,081

Intercompany rental revenue 37,047 — ( 37,047 ) —

Total revenues, excluding third-party management and other fees 348,408 58,720 ( 37,047 ) 370,081

Operating expenses:

Property operating expenses 86,576 — — 86,576

Observatory expenses — 17,389 — 17,389

Other segment expenses 1

68,787 37,047 ( 37,047 ) 68,787

Total segment operating expenses 155,363 54,436 ( 37,047 ) 172,752

Net operating income $ 193,045 $ 4,284 $ — $ 197,329

(1) Other segment expenses include real estate taxes, ground rent expense and intercompany rent expense.

Below is a reconciliation of Net income to Net operating income:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(amounts in thousands) 2025 2024 2025 2024

(unaudited) (unaudited)

Net income $ 11,385 $ 28,555 $ 27,163 $ 38,770

4 unchanged sentences

Loss on early extinguishment of debt — — — 553

Income tax benefit ( 619 ) ( 655 )

Income tax expense (benefit) 478 750 ( 141 ) 95

Gain on disposition of property — ( 10,803 ) ( 13,170 ) ( 10,803 )

4 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements