What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-08-06 compared with 2025-05-07 · 130 added, 62 removed, 294 unchanged (40% of the section changed)

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and its consolidated subsidiaries.

This Management’s Discussion and Analysis provides a comparison of our performance for the three month periods ended March 31, 2025 with the corresponding three month periods ended March 31, 2024 and reviews our financial position as of March 31, 2025.

This Management’s Discussion and Analysis provides a comparison of our performance for the three and six month periods ended June 30, 2025 with the corresponding three and six month periods ended June 30, 2024 and reviews our financial position as of June 30, 2025.

The following discussion related to our consolidated financial statements should be read in conjunction with the financial statements and the notes thereto appearing elsewhere in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K.

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You can identify forward-looking statements by the use of forward-looking terminology such as “aims," "anticipates," "approximately," "believes," "contemplates," "continues," "estimates," "expects," "forecasts," "hope," "intends," "may," "plans," "seeks," "should," "thinks," "will," "would" or the negative of these words and phrases or similar words or phrases.

In particul ar, statements pertaining to ESRT's capital resources, portfolio performance, dividend policy and results of operations contain forward-looking statements.

In particul ar, statements pertaining to our capital resources, portfolio performance, distribution policy and results of operations contain forward-looking statements.

Likewise, all of our statements regarding anticipated growth in our portfolio from operations, acquisitions and anticipated market conditions, demographics and results of operations are forward-looking statements.

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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).

Highlights for the three months ended March 31, 2025

Highlights for the three months ended June 30, 2025

• Net income attributable to common unitholders of $10.3 million.

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• Signed a total of 232,108 rentable square feet of new, renewal, and expansion leases.

• 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 June 2025.

Results of Operations

The discussion below relates to our results of operations for the three months ended March 31, 2025 and 2024, respectively.

Three Months Ended March 31, 2025 Compared to the Three Months Ended March 31, 2024

The discussion below relates to our results of operations for the three and six months ended June 30, 2025 and 2024, respectively.

Three Months Ended June 30, 2025 Compared to the Three Months Ended June 30, 2024

The following table summarizes the historical results of operations:

Three Months Ended March 31,

Three Months Ended June 30,

2025 2024 Change %

(amounts in thousands)

Real Estate Segment Observatory Segment Total Real Estate Segment Observatory Segment Total

(amounts in thousands) Real Estate Segment Observatory Segment Total Real Estate Segment Observatory Segment Total

Rental revenue

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Observatory revenue — 33,899 33,899 — 34,124 34,124 (225) (0.7) %

Lease termination fees — — — — — — — — %

Lease termination fees 464 — 464 — — — 464 N/A

Third-party management and other fees

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(25,126) — (25,126) (25,323) — (25,323) 197 0.8 %

Interest expense associated with property in receivership (647) — (647) — — — (647) N/A

Interest expense associated with property in receivership — — — (628) — (628) 628 100.0 %

Gain on disposition of property

— — — 10,803 — 10,803 (10,803) (100.0) %

Income before income taxes

8,342 3,521 11,863 25,070 4,235 29,305 (17,442) (59.5) %

Income tax expense (159) (319) (478) (208) (542) (750) 272 36.3 %

8,183 3,202 11,385 24,862 3,693 28,555 (17,170) (60.1) %

Private perpetual preferred unit distributions (1,051) — (1,051) (1,051) — (1,051) — — %

Net income attributable to common unitholders

$ 7,132 $ 3,202 $ 10,334 $ 23,811 $ 3,693 $ 27,504 $ (17,170) (62.4) %

Real Estate Segment

Rental Revenue

The increase in rental revenue was primarily attributable to higher operating and real estate tax expense escalations driving a $3.8 million increase during the three months ended June 30, 2025 compared to the three months ended June 30, 2024.

This was partially offset by the net impact of acquisitions and dispositions made during 2024, which reduced rental revenue by $2.2 million.

Property Operating Expenses

The increase in property operating expenses was primarily due to higher repair and maintenance costs and cleaning-related payroll costs during the three months ended June 30, 2025 compared to the three months ended June 30, 2024.

This was partially offset by the net impact of acquisitions and dispositions made during 2024.

Interest Income

The decrease in interest income in the three months ended June 30, 2025 is primarily attributable to a decrease in cash and cash equivalents due to the paydown of the $120 million revolving credit facility and the $100 million Series A senior unsecured notes in March 2025, and the acquisition of two retail properties in June 2025 for an aggregate purchase price of $31.0 million.

Gain on Disposition of Property

There is no gain on disposition activity for the three months ended June 30, 2025.

The gain on disposition activity for the three months ended June 30, 2024 relates to the derecognition of assets and certain liabilities in connection with the consensual foreclosure of First Stamford Place in Stamford, Connecticut in May 2024.

See "Financial Statements - Note 3 Acquisitions and Dispositions" for additional details.

Observatory Segment

Observatory Revenue

Observatory revenues were lower due to lower visitation during the three months ended June 30, 2025 compared to the three months ended June 30, 2024, primarily due to more bad weather days during holiday weekends and lower levels of international tourism in 2025 as compared to 2024.

Observatory Expenses

The increase in Observatory expenses was primarily due to higher marketing expenses during the three months ended June 30, 2025 compared to the three months ended June 30, 2024.

Six Months Ended June 30, 2025 Compared to the Six Months Ended June 30, 2024

Six Months Ended June 30,

2025 2024 Change %

(amounts in thousands) Real Estate Segment Observatory Segment Total Real Estate Segment Observatory Segment Total

Rental revenue

$ 308,082 $ — $ 308,082 $ 306,352 $ — $ 306,352 $ 1,730 0.6 %

Observatory revenue — 57,060 57,060 — 58,720 58,720 (1,660) (2.8) %

Lease termination fees 464 — 464 — — — 464 N/A

Third-party management and other fees

839 — 839 641 — 641 198 30.9 %

Other revenues and fees

4,871 — 4,871 5,009 — 5,009 (138) (2.8) %

Total revenues

314,256 57,060 371,316 312,002 58,720 370,722 594 0.2 %

Operating expenses:

Property operating expenses

89,940 — 89,940 86,576 — 86,576 (3,364) (3.9) %

Ground rent expenses

4,663 — 4,663 4,663 — 4,663 — — %

General and administrative expenses

35,625 — 35,625 33,992 — 33,992 (1,633) (4.8) %

Observatory expenses

— 17,940 17,940 — 17,389 17,389 (551) (3.2) %

Real estate taxes

65,657 — 65,657 64,124 — 64,124 (1,533) (2.4) %

Depreciation and amortization

96,495 86 96,581 93,485 69 93,554 (3,027) (3.2) %

Total operating expenses

292,380 18,026 310,406 282,840 17,458 300,298 (10,108) (3.4) %

Operating income

21,876 39,034 60,910 29,162 41,262 70,424 (9,514) (13.5) %

Intercompany rent revenue (expense) 35,826 (35,826) — 37,047 (37,047) — — — %

Other income (expense):

Interest income

5,428 225 5,653 9,151 119 9,270 (3,617) (39.0) %

Interest expense

(52,064) — (52,064) (50,451) — (50,451) (1,613) (3.2) %

Interest expense associated with property in receivership (647) — (647) (628) — (628) (19) (3.0) %

Loss on early extinguishment of debt — — — (553) — (553) 553 100.0 %

Gain on disposition of property

13,170 — 13,170 — — — 13,170 N/A

13,170 — 13,170 10,803 — 10,803 2,367 21.9 %

Income before income taxes

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(365) 506 141 (321) 226 (95) 236 248.4 %

23,224 3,939 27,163 34,210 4,560 38,770 (11,607) (29.9) %

Private perpetual preferred unit distributions (2,101) — (2,101) (2,101) — (2,101) — — %

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Rental Revenue

The increase in rental revenue was primarily attributable to higher operating and real estate tax expense escalations driving a $5.0 million increase during the three months ended March 31, 2025 compared to the three months ended March 31, 2024.

The increase in rental revenue was primarily attributable to higher operating and real estate tax expense escalations driving a $7.9 million increase during the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

This was partially offset by the net impact of acquisitions and dispositions made during 2024, which reduced rental revenue by $6.2 million.

Property Operating Expenses

Property operating expenses was consistent primarily attributable to a $2.1 million decrease due to the net impact of acquisitions and dispositions made during 2024, primarily offset by increases in payroll costs and utilities.

The increase in property operating expenses was primarily due to higher repair and maintenance costs, cleaning-related payroll costs, and utilities during the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

This was partially offset by the net impact of acquisitions and dispositions made during 2024.

General and Administrative Expenses

The increase in general and administrative expenses was primarily due to higher payroll costs during the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

This increase in payroll costs is partially attributable to an acceleration of share based compensation expense as certain executives approach their retirement eligibility date.

Interest Income

Interest Expense

The increase in interest expense was attributable to the June 2024 issuance of Series I-K senior unsecured notes, partially offset by the February 2025 release of the First Stamford Place senior mortgage obligation, and March 2025 paydown of the Series A senior unsecured notes and revolver.

The increase in interest expense was attributable to the June 2024 issuance of Series I-K senior unsecured notes, partially offset by the February 2025 release of the First Stamford Place senior mortgage obligation, and the March 2025 paydown of the $120 million revolving credit facility and the $100 million Series A senior unsecured notes.

Gain on Disposition of Property

The gain on disposition activity for the three months ended March 31, 2025 primarily represents the mezzanine debt obligation which was deconsolidated in connection with the completion of the consensual foreclosure of First Stamford Place.

The gain on disposition activity for the six months ended June 30, 2024 and 2025, represents the derecognition of assets and certain liabilities in connection with the consensual foreclosure of First Stamford Place in Stamford, Connecticut in May 2024, and the subsequent deconsolidation of the mezzanine debt obligation in connection with the completion of the consensual foreclosure in February 2025, respectively.

See "Financial Statements - Note 3 Acquisitions and Dispositions" for additional details.

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Observatory Revenue

Observatory revenues were lower due to decreased visitation during the three months ended March 31, 2025 compared to the three months ended March 31, 2024, primarily due to the shift in the timing of the Easter holiday that fell in April during 2025 as compared to March in 2024.

Observatory revenues were lower due to lower visitation during the six months ended June 30, 2025 compared to the six months ended June 30, 2024, primarily due to more bad weather days during holiday weekends and lower levels of international tourism in 2025 as compared to 2024.

Liquidity and Capital Resources

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ESRT's charter does not restrict the amount of leverage that we may use.

At March 31, 2025, we had $187.8 million available in cash and cash equivalents, and $620.0 million available under our unsecured revolving credit facility.

At March 31, 2025, we had approximately $2.1 billion of total consolidated indebtedness outstanding, with a weighted average interest rate of 4.30% and a weighted average maturity of 5.3 years.

At June 30, 2025, we had $94.6 million available in cash and cash equivalents, and $620.0 million available under our unsecured revolving credit facility.

At June 30, 2025, we had approximately $2.1 billion of total consolidated indebtedness outstanding, with a weighted average interest rate of 4.34% and a weighted average maturity of 5.0 years.

Portfolio Transaction Activity

On March 28, 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 and now own 100% of the ownership interests in these assets.

In June 2025, we closed on the acquisition of two retail properties on North 6th 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.

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.

This acquisition is subject to customary closing conditions.

The acquisition is anticipated to close in mid-2025.

Unsecured Revolving Credit and Term Loan 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 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.

In March 2024, we closed a $715.0 million, five-year unsecured credit agreement which consists of a $620.0 million revolver and a $95.0 million term loan facility, each of which mature on March 8, 2029, inclusive of the extension periods.

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Financial Covenants

As of March 31, 2025, we were in compliance with the following financial covenants related to our unsecured facilities:

Financial Covenant Required March 31, 2025 In Compliance

As of June 30, 2025, we were in compliance with the following financial covenants related to our unsecured facilities:

Financial Covenant Required June 30, 2025 In Compliance

Maximum total leverage < 60% 32.7 % Yes

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Mortgage Debt

As of March 31, 2025, mortgage notes payable, net, amounted to $691.8 million.

As of June 30, 2025, mortgage notes payable, net, amounted to $691.4 million.

We have no mortgage debt maturity until April 2026.

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Office Properties (1)(2)

Three Months Ended March 31,

Six Months Ended June 30,

Total New Leases, Expansions, and Renewals (3)

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Retail Properties (2)(6)

Three Months Ended March 31,

Six Months Ended June 30,

Total New Leases, Expansions, and Renewals (3)

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(2) The tables above exclude our multifamily properties.

(3) Beginning in June 2024, the number of leases signed include "Early Renewals" which are leases signed over two years prior to the lease expiration.

Amounts for number of leases signed, total square feet, leasing commission costs per square foot and tenant improvement costs per square foot have been adjusted to include the impact of early renewals for the three months ended March 31, 2024.

(3) The number of leases signed include "Early Renewals" which are leases signed over two years prior to the lease expiration.

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

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(6) Includes an aggregate of 475,744 and 486,943 rentable square feet of retail space in our Manhattan office properties in 2025 and 2024, respectively.

(amounts in thousands) Three Months Ended March 31,

(amounts in thousands) Six Months Ended June 30,

Total Commercial Portfolio

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(1) Includes all capital expenditures, excluding tenant improvements and leasing commission costs.

As of March 31, 2025, we expect to incur additional costs relating to obligations under existing lease agreements of approximately $110.9 million for tenant improvements and leasing commissions.

As of June 30, 2025, we expect to incur additional costs relating to obligations under existing lease agreements of approximately $103.9 million for tenant improvements and leasing commissions.

We intend to fund the tenant improvements and leasing commission costs through a combination of operating cash flow, cash on hand and other borrowings.

Capital expenditures are considered part of both our short-term and long-term liquidity requirements.

We intend to fund capital improvements through a combination of operating cash flow, cash on hand and borrowings.

We intend to fund capital improvements through a combination of operating cash flow, cash on hand and other borrowings.

Distribution Policy

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Distribution to Equity Holders

Distributions and dividends amounting to $10.8 million and 10.6 million have been made to equity holders for the three months ended March 31, 2025 and 2024, respectively.

Distributions amounting to $21.6 million and $21.2 million have been made to equity holders for the six months ended June 30, 2025 and 2024, respectively.

Stock and Publicly Traded Operating Partnership Unit Repurchase Program

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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.

See "Financial Statements - Note 10.

Comparison of Three Months Ended March 31, 2025 to the Three Months Ended March 31, 2024

Cash and cash equivalents and restricted cash were $237.4 million and $385.3 million, respectively, as of March 31, 2025 and 2024.

Capital." for a summary of ESRT's repurchases of equity securities in each of the three months ended June 30, 2025.

Comparison of Six Months Ended June 30, 2025 to the Six Months Ended June 30, 2024

Cash and cash equivalents and restricted cash were $136.7 million and $576.5 million as of June 30, 2025 and 2024, respectively.

The decrease was primarily the result of the following changes in cash flows:

Operating activities .

Net cash provided by operating activities increased by $12.2 million to $83.1 million primarily due to increases in working capital.

Net cash provided by operating activities increased by $1.8 million to $109.9 million primarily due to changes in working capital.

Investing activities .

Net cash used in investing activities decreased by $29.2 million to $42.1 million primarily due to the prior year acquisition of non-controlling interests in other partnerships.

Also during the current period, there was a $10.9 million decrease in capital expenditures and redevelopment in the three months ended March 31, 2025 compared to the three months ended March 31, 2024.

Net cash used in investing activities increased by $27.9 million to $155.6 million primarily due to the acquisition of two retail properties on North 6 th Street in Williamsburg, Brooklyn in June 2025 for a purchase price of $31.7 million, including transaction costs.

Financing activities .

Net cash used in financing activities increased by $211.7 million to $233.0 million primarily due to the repayment in full of the Series A senior unsecured notes and a pay-down on our unsecured revolving credit facility in the current period.

Net cash used in financing activities increased by $436.1 million to $246.9 million primarily due to the 2025 repayments of the $120.0 million previously drawn on the revolving credit facility and the $100.0 million Series A senior unsecured notes, compared to the 2024 proceeds from the issuance of $225.0 million Series I-K senior unsecured notes.

See "Financial Statements - Note 5.

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Depreciation and amortization expenses as well as gains or losses from the sale of operating real estate assets are eliminated because they may not accurately represent the actual change in value in our office or retail properties that result from use of the properties or changes in market conditions.

While certain aspects of real property do decline in value over time in a manner that is reasonably captured by depreciation and amortization, the value of the properties as a whole has 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.

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We believe that eliminating these costs from net income is useful to investors because the resulting measure captures the actual revenue generated and actual expenses incurred in operating our properties as well as trends in occupancy rates, rental rates and operating costs.

However, the usefulness of NOI is limited because it excludes general and administrative costs, interest expense, depreciation and amortization expense and gains or losses from the sale of properties, and other gains and losses as stipulated by GAAP, the level of capital expenditures and leasing costs necessary to maintain the operating performance of our properties, all of which are significant economic costs.

expenditures and leasing costs necessary to maintain the operating performance of our properties, all of which are significant economic costs.

NOI may fail to capture significant trends in these components of net income which further limits its usefulness.

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The following table presents a reconciliation of our net income, the most directly comparable GAAP measure, to NOI:

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

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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)

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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.

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.

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The following table presents a reconciliation of our net income, the most directly comparable GAAP measure, to FFO, Modified FFO and Core FFO:

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

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Due to the relatively small number of leases that are signed in any particular quarter, one or more larger leases may have a disproportionately positive or negative impact on average rent, tenant improvement and leasing commission costs for that period.

As a result, we believe it is more appropriate when analyzing trends in average rent and tenant improvement and leasing commission costs to review

activity over multiple quarters or years.

As a result, we believe it is more appropriate when analyzing trends in average rent and tenant improvement and leasing commission costs to review activity over multiple quarters or years.

Tenant improvement costs include expenditures for general improvements occurring concurrently with, but that are not directly related to, the cost of installing a new tenant.

Leasing commission costs are similarly subject to significant fluctuations depending upon the length of leases being signed and the mix of tenants from quarter to quarter.

As of March 31, 2025, there were approximately 0.7 million rentable square feet of space in our portfolio available to lease (excluding leases signed but not yet commenced) representing 7.9% of the net rentable square footage of the properties in our commercial portfolio.

As of June 30, 2025, there were approximately 0.6 million rentable square feet of space in our portfolio available to lease (excluding leases signed but not yet commenced) representing 7.4% of the net rentable square footage of the properties in our commercial portfolio.

In addition, leases representing 3.5% and 5.8% of net rentable square footage of the properties in our commercial portfolio will expire in 2025 and in 2026, respectively.

These leases are expected to represent approximately 3.5% and 5.4%, respectively, of our annualized rent for such periods.

Our revenues and results of operations can be impacted by expiring leases that are not renewed or re-leased or that are renewed or re-leased at base rental rates equal to, above or below the current average base rental rates.

Our revenues and results of operations can be impacted by expiring leases that are not renewed or re-leased or that are renewed or re-

leased at base rental rates equal to, above or below the current average base rental rates.

Further, our revenues and results of operations can also be affected by downtime after space is vacated and the costs we incur to re-lease available space, including payment of leasing commissions, redevelopments and build-to-suit remodeling that may not be borne by the tenant.

Observatory Operations

For the three months ended March 31, 2025, the Observatory hosted 428,000 visitors, compared to 485,000 visitors for the three months ended March 31, 2024, a decrease of 11.8%.

Observatory revenue for the three months ended March 31, 2025 was $23.2 million, a 5.8% decrease from $24.6 million for the three months ended March 31, 2024.

The Observatory revenue decrease was driven by lower visitation levels due to the timing of the Easter holiday that fell in April during 2025 as compared to March in 2024.

For the six months ended June 30, 2025, the Observatory hosted 1,057,000 visitors, compared to 1,133,000 visitors for the six months ended June 30, 2024, a decrease of 6.7%.

Observatory revenue for the six months ended June 30, 2025 was $57.1 million, a 2.8% decrease from $58.7 million for the six months ended June 30, 2024.

Observatory revenues and admissions are dependent upon the following:

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and (v) weather trends.

Year to date in 2025, ESRT has benefited from solid leasing activity and Observatory performance.

We believe the global economy, including the real estate sector, currently navigates an environment of uncertainty around inflation, interest rates, questions on the direction of capital markets, risk of recession and geopolitical unrest.

There have been concerns about the softening of the office real estate market in particular, amidst refinancing challenges of existing low interest rate loans and associated reduced new loan availability and increased costs of loans and related increased expectations of equity returns, coupled with the gradual pace of return-to-office and its impact on the physical utilization of space and asset valuations.

Additionally, the risk of a global economic recession could impact the number of visitors to the Empire State Building Observatory, as well as our pricing power.

We believe the global economy, including the real estate sector, currently navigates an environment of uncertainty around inflation, interest rates, tariffs, economic growth and geopolitical unrest.

There have been concerns about the softening of the office real estate market, amidst refinancing challenges of existing low interest rate loans and associated reduced new loan availability and increased costs of loans and related increased expectations of equity returns.

Additionally, the risk of slower global economic growth could impact the number of visitors to the Empire State Building Observatory, as well as our pricing power.

Despite this global economic backdrop, we believe that ESRT is in a good competitive position with diversified drivers of income across office, retail, multifamily and the Empire State Building Observatory.

ESRT’s New York City-focused portfolio is modernized, amenitized, well-located and energy efficient, with indoor environmental quality, competitive rental rates and strong leased percentages.

We believe our business is further fortified by the continued performance of our Observatory attraction.

In addition to our diversified portfolio, our business is supported by a well-positioned balance sheet, modest leverage and good access to liquidity as set forth herein.

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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 2. Management’s Discussion and Analysis