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

Christina Van Tassell, a director of Empire State Realty Trust, was granted 13,408 long-term incentive plan units (LTIP Units) on May 10, 2024.

Summary

• On May 10, 2024, Christina Van Tassell, a director of Empire State Realty Trust, Inc. (ESRT), received 13,408 long-term incentive plan units (LTIP Units).
• These LTIP Units are a class of units of Empire State Realty OP, L.P. and were granted under the Empire State Realty Trust, Inc. Empire State Realty OP, L.P. 2024 Equity Incentive Plan.
• Upon vesting and sufficient capital allocations for federal income tax purposes, these LTIP Units are convertible into an equivalent number of Operating Partnership Units.
• Operating Partnership Units are redeemable for Class A Common Stock of Empire State Realty Trust, Inc. on a one-for-one basis or the cash value of such shares, at the Issuer's option.
• The rights to convert LTIP Units and redeem Operating Partnership Units do not have expiration dates.
• The 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 following the applicable grant date.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, indicating a positive alignment of interests between management and shareholders. The vesting schedule and holding period suggest a long-term commitment.

Positives

• The grant of LTIP Units aligns the director's interests with the long-term performance of the company.
• The vesting schedule encourages continued service and commitment from the director.

Future Outlook

The LTIP Units vest ratably on each of the first four anniversaries of the date of grant, suggesting a long-term incentive structure.

Industry Context

Granting LTIP units to directors is a common practice in the real estate industry to incentivize long-term performance and align management's interests with those of shareholders.

Comparison to Industry Standards

• Many REITs use LTIPs as part of their executive compensation packages.
• Companies like Simon Property Group and Prologis also utilize equity-based compensation to align executive incentives with shareholder value.

Stakeholder Impact

• Shareholders: Aligns director's interests with long-term company performance.
• Employees: Demonstrates a commitment to incentivizing key personnel.

Key Dates