Form 4: Empire State Realty Trust EVP, CFO and CAO Stephen Horn Acquires Long Term Incentive Plan Units

Stephen Horn, EVP, CFO and CAO of Empire State Realty Trust, acquired 43,528 Long Term Incentive Plan Units convertible into Class A Common Stock.

Summary

• On March 13, 2025, Stephen Horn, the EVP, CFO, and CAO of Empire State Realty Trust, Inc. (ESRT), acquired 43,528 Long Term Incentive Plan Units (LTIP Units).
• These LTIP Units are a class of units of Empire State Realty OP, L.P. and can be converted into an equivalent number of Operating Partnership Units upon vesting.
• The Operating Partnership Units 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 LTIP Units were granted under the Empire State Realty Trust, Inc. Empire State Realty OP, L.P. 2024 Equity Incentive Plan.
• The LTIP Units vest ratably on each of the first four anniversaries of January 1, 2025, subject to continued employment.
• Each LTIP Unit is subject to a holding period for an additional two years following its vesting date.
• Following the transaction, Stephen Horn directly owns 138,675 shares of Class A Common Stock.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, indicating a positive alignment of interests between management and shareholders. There are no red flags or negative implications.

Positives

• The acquisition of LTIP Units aligns the executive's interests with those of the shareholders.
• The vesting schedule and holding period encourage long-term commitment from the executive.

Future Outlook

The vesting schedule of the LTIP Units suggests a continued commitment from the executive to the company's long-term performance.

Industry Context

This type of equity compensation is common in the real estate industry to incentivize executives and align their interests with those of shareholders.

Comparison to Industry Standards

• Equity-based compensation, such as LTIP units, is a standard practice among publicly traded REITs like ESRT.
• Companies such as Boston Properties (BXP) and Vornado Realty Trust (VNO) also utilize similar long-term incentive plans for their executives.
• The vesting schedules and holding periods are generally in line with industry norms to ensure sustained performance and retention.

Stakeholder Impact

• The acquisition of LTIP Units by a key executive can positively influence shareholder confidence.
• The vesting schedule and holding period incentivize the executive to focus on long-term value creation for shareholders.

Key Dates