Form 4: Patricia Han Receives 13,408 LTIP Units in Empire State Realty Trust

Director Patricia Han acquired 13,408 Long Term Incentive Plan Units in Empire State Realty Trust on May 10, 2024.

Summary

• Patricia Han, a director of Empire State Realty Trust, Inc., received 13,408 Long Term Incentive Plan Units (LTIP Units) on May 10, 2024.
• These LTIP Units are a class of units of Empire State Realty OP, L.P. and were granted under the 2024 Equity Incentive Plan.
• Upon vesting and sufficient capital allocations, the LTIP Units are convertible into Operating Partnership Units, which 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.
• 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 grant date.
• Following the transaction, Patricia Han beneficially owns 109,639 shares of Class A Common Stock.

Sentiment

Score: 7

Explanation: The document reflects a standard equity grant, which is generally viewed positively as it aligns management interests with shareholders. The vesting schedule and holding period further reinforce this alignment.

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 over four years, suggesting a long-term commitment from the director.

Industry Context

Grants of LTIP units are a common practice in the real estate industry to incentivize and retain key personnel.

Comparison to Industry Standards

• Equity compensation practices vary across the real estate industry, but LTIP units are a fairly standard tool for aligning management and shareholder interests.
• Companies like Boston Properties (BXP) and Simon Property Group (SPG) also utilize equity-based compensation plans for their executives and directors.

Stakeholder Impact

• The grant of LTIP Units aligns the director's interests with those of the shareholders, potentially leading to decisions that benefit the company's long-term value.
• Employees may view the equity grant as a positive sign of the company's commitment to its leadership.

Key Dates