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

Robert Paige Hood, a director of Empire State Realty Trust, Inc., was granted Long-Term Incentive Plan (LTIP) units on May 10, 2024.

Summary

• On May 10, 2024, Robert Paige Hood, a director of Empire State Realty Trust, Inc. (ESRT), received 13,408 LTIP units and 10,860 LTIP units.
• The LTIP units are a class of units of Empire State Realty OP, L.P.
• These LTIP units can be converted into units of limited partnership interests, which are redeemable for Class A Common Stock of ESRT on a one-for-one basis or the cash value of such shares, at the Issuer's option.
• The first set of 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.
• The second set of 10,860 LTIP Units vest ratably on each of the first three anniversaries of the grant date and are subject to an additional two-year holding period; these are in lieu of a portion of the director's annual base retainer in cash.
• Following the transaction, Hood directly owns 128,989 and 139,849 Class A Common Stock.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The granting of LTIP units is a standard practice and aligns the director's interests with the company's long-term performance. There are no explicit negative implications.

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.
• The director's increased holdings of Class A Common Stock demonstrates confidence in the company's future.

Future Outlook

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

Industry Context

This type of equity compensation is common for directors of publicly traded REITs to align their interests with those of shareholders.

Comparison to Industry Standards

• Equity compensation for REIT directors is a standard practice.
• Companies like Simon Property Group (SPG) and Prologis (PLD) also utilize equity-based compensation plans for their directors.
• The vesting schedules and holding periods are generally in line with industry norms to ensure long-term commitment.

Stakeholder Impact

• Shareholders: Aligns director's interests with long-term company performance.
• Employees: May have a positive impact on morale as it shows the company is investing in its leadership.
• Management: Reinforces the company's commitment to its leadership team.

Key Dates