Form 4: Empire State Realty Trust Executive Acquires Significant LTIP Units

Thomas P. Durels, EVP of Real Estate at Empire State Realty Trust, acquires a substantial number of Long Term Incentive Plan (LTIP) Units, convertible into Class A Common Stock.

Summary

• Thomas P. Durels, an Executive Vice President at Empire State Realty Trust, Inc., has acquired LTIP Units.
• On March 13, 2025, Durels acquired 128,948 LTIP Units and 200,547 LTIP Units.
• These LTIP Units are convertible into 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 executive now beneficially owns 2,746,728 shares of Class A Common Stock directly and 2,947,275 shares of Class A Common Stock directly.
• The LTIP Units vest ratably on the anniversaries of January 1, 2025, subject to continued employment, and are subject to an additional two-year holding period after vesting.
• 200,547 LTIP Units were issued in connection with the Reporting Person's election to receive LTIP Units in lieu of the Reporting Person's 2024 cash annual incentive bonus.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, indicating confidence in the company's future performance. The acquisition of LTIP units is generally viewed positively as it aligns management's interests with shareholders.

Positives

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

Future Outlook

The vesting of LTIP units is contingent upon continued employment and subject to a holding period, suggesting a long-term commitment from the executive.

Industry Context

Executive compensation through equity-based awards like LTIP Units is a common practice in the real estate industry to incentivize performance and align management's interests with shareholders.

Comparison to Industry Standards

• Similar REITs, such as Boston Properties (BXP) and Vornado Realty Trust (VNO), utilize LTIP units and stock options as part of their executive compensation packages.
• The vesting schedules and holding periods are generally in line with industry norms, designed to promote long-term value creation.

Stakeholder Impact

• Shareholders may view the LTIP Unit acquisition positively as it aligns executive incentives with long-term company performance.
• Employees may see this as a sign of confidence in the company's future.

Key Dates