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, Inc. (ESRT), acquired Long Term Incentive Plan Units (LTIP Units) on May 16, 2025.
• 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 ESRT on a one-for-one basis or the cash value of such shares.
• 16,484 LTIP Units vest ratably on each of the first four anniversaries of the grant date, subject to an additional two-year holding period.
• 13,352 LTIP Units vest ratably on each of the first three anniversaries of the grant date and are 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 reported transactions, Hill directly owns 136,484 and 149,836 LTIP Units.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, suggesting a neutral to slightly positive sentiment due to alignment of interests.

Positives

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

Future Outlook

The LTIP Units vest over the next three to four years, aligning the director's interests with the long-term performance of the company.

Industry Context

Equity compensation is a common practice in the real estate industry to incentivize executives and align their interests with shareholders.

Comparison to Industry Standards

• LTIP units are a common form of equity compensation used by REITs like ESRT to align management and director incentives with shareholder value creation.
• Similar to other REITs, ESRT's LTIP units typically vest over a multi-year period and are subject to holding periods, encouraging long-term focus.
• Blackstone and Brookfield Asset Management also use similar equity-based compensation plans for their executives.

Stakeholder Impact

• The acquisition of LTIP units aligns the director's interests with those of shareholders, potentially driving long-term value creation.

Key Dates

Keywords

LTIP Units, Empire State Realty Trust, Director, Grant Hill, ESRT, Beneficial Ownership, Form 4, Equity Incentive Plan