Form 4: Empire State Realty Trust Executive Acquires Significant Long-Term Incentive Plan Units

Christina Chiu, President of Empire State Realty Trust, acquires a substantial number of Long-Term Incentive Plan Units (LTIP Units) on March 13, 2024.

Summary

• On March 13, 2024, Christina Chiu, President of Empire State Realty Trust, acquired 99,100 and 124,072 Long-Term Incentive Plan Units (LTIP Units).
• These LTIP Units are a class of units of Empire State Realty OP, L.P.
• 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 into Operating Partnership Units and redeem Operating Partnership Units do not have expiration dates.
• The LTIP Units were granted under the Empire State Realty Trust, Inc. Empire State Realty OP, L.P. 2019 Equity Incentive Plan.
• The LTIP Units vest ratably on each of the first four anniversaries of January 1, 2024, subject to continued employment.
• Each LTIP Unit is subject to a holding period for an additional two years following the applicable vesting date.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The acquisition of LTIP units by a key executive suggests confidence in the company's future performance. The vesting schedule and holding period indicate a long-term commitment.

Positives

• The acquisition of LTIP Units by a key executive signals confidence in the company's long-term performance.

Future Outlook

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

Industry Context

Executive compensation through equity-based incentives is a common practice in the real estate industry to align management's 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 Simon Property Group (SPG) and Prologis (PLD) to incentivize executives and align their interests with shareholder value.
• The vesting schedule and holding period of the LTIP units are typical features designed to ensure long-term commitment from the executive, similar to plans implemented by Boston Properties (BXP) and Vornado Realty Trust (VNO).

Stakeholder Impact

• The acquisition of LTIP Units by a key executive can positively influence shareholder sentiment.

Key Dates