Form 4: Empire State Realty Trust CEO Receives Long-Term Incentive Plan Units

Anthony E. Malkin, Chairman and CEO of Empire State Realty Trust, Inc., reports the acquisition of LTIP units convertible into Class A Common Stock.

Summary

• Anthony E. Malkin, Chairman and CEO of Empire State Realty Trust, Inc. (ESRT), has reported changes in beneficial ownership.
• On March 13, 2025, Malkin acquired 388,392 and 469,182 Long Term Incentive Plan Units (LTIP Units).
• These LTIP Units are convertible into units of limited partnership interests, which are redeemable for Class A Common Stock on a one-for-one basis or the cash value of such shares.
• The reporting person directly owns 5,511,664 and 5,980,846 Class A Common Stock after the reported transactions.
• The LTIP Units were granted under the Empire State Realty Trust, Inc. Empire State Realty OP, L.P. 2024 Equity Incentive Plan.
• 388,392 LTIP Units vest ratably on each of the first four anniversaries of January 1, 2025, and are subject to a two-year holding period after vesting.
• 469,182 LTIP Units vest ratably on each of the first three anniversaries of January 1, 2025, and are subject to a two-year holding period after vesting; these were issued in lieu of the 2024 cash annual incentive bonus.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, suggesting a stable and well-managed company. The alignment of executive interests with shareholders is generally viewed positively.

Positives

• The acquisition of LTIP units by the CEO aligns his interests with those of the shareholders, incentivizing long-term performance.
• The vesting schedules and holding periods associated with the LTIP units encourage sustained commitment and value creation.

Future Outlook

The document does not contain specific forward-looking statements beyond the vesting schedules of the LTIP units.

Industry Context

This filing is a routine disclosure related to executive compensation and equity ownership, common in publicly traded REITs like Empire State Realty Trust. It reflects standard practices for incentivizing and retaining key personnel.

Comparison to Industry Standards

• Granting LTIP units to executives is a common practice among publicly traded REITs to align management's interests with those of shareholders.
• Vesting schedules and holding periods are typical features of equity compensation plans, designed to incentivize long-term performance and retention.
• The specific terms of the LTIP units, such as the vesting schedule and conversion ratio, are comparable to those offered by other REITs to their executives.

Stakeholder Impact

• Shareholders: The LTIP units align the CEO's interests with shareholder value creation.
• Employees: The equity incentive plan can contribute to employee morale and retention.

Key Dates