Form 4: Empire State Realty Trust Director Grant Hill Acquires LTIP Units

Director Grant Hill acquired LTIP units in Empire State Realty Trust, which are convertible into Class A Common Stock.

Summary

• Grant Hill, a director of Empire State Realty Trust, acquired Long Term Incentive Plan Units (LTIP Units) on May 10, 2024.
• These LTIP Units are a class of units of Empire State Realty OP, L.P. and are convertible into Operating Partnership Units, which are redeemable for Class A Common Stock of Empire State Realty Trust on a one-for-one basis or the cash value of such shares.
• 13,408 LTIP Units vest ratably on each of the first four anniversaries of the grant date and are subject to an additional two-year holding period.
• 10,860 LTIP Units vest ratably on each of the first three anniversaries of the grant date and are being issued in lieu of a portion of the director's annual base retainer in cash, also subject to an additional two-year holding period.
• Following the transaction, Hill directly owns 109,140 LTIP Units and 120,000 LTIP Units.

Sentiment

Score: 7

Explanation: The document reflects a standard transaction related to director compensation, suggesting a neutral to slightly positive sentiment due to the alignment of interests between the director and shareholders.

Positives

• The acquisition of LTIP units by a director signals confidence in the company's long-term performance.

Future Outlook

The vesting schedules of the LTIP units suggest a long-term commitment by the director to the company's success.

Industry Context

Equity compensation is a common practice in the real estate industry to align the interests of management and directors with those of shareholders.

Comparison to Industry Standards

• Many REITs use LTIP units or similar equity-based compensation to incentivize executives and directors.
• The vesting schedules and holding periods described are fairly standard in the industry to ensure long-term alignment.

Stakeholder Impact

• The acquisition of LTIP units aligns the director's interests with those of shareholders, potentially leading to decisions that benefit the company's long-term value.

Key Dates