On this page of StockholderLetter.com we present the latest annual shareholder letter from Empire State Realty Trust, Inc. — ticker symbol ESRT. Reading current and past ESRT letters to shareholders can bring important insights into the investment thesis.

 •  4/3/2025 Letter Continued (Full PDF)
 •  3/30/2023 ESRT Stockholder Letter
 •  3/28/2024 ESRT Stockholder Letter
 •  More "REITs" Category Stockholder Letters
 •  ESRT Benford's Law Stock Score = 93

ESRT Shareholder/Stockholder Letter Transcript:

2024 ANNUAL REPORT

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TRUSTED
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PARTNER
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Anthony E. Malkin
Chairman and Chief Executive Officer
Christina Chiu
President
To Our Fellow Shareholders:
This letter was finalized on March 28, 2025.
We reflect on a year of significant progress. In 2024, we strengthened our
In 2024, we
leased over
1.3 million
square feet
    our highest
annual volume
since 2019.
position as a pure play NYC REIT with multiple sources of NOI and are well
positioned for the opportunities and challenges of this dynamic market.
In 2024, ESRT put points on the board with accomplishments in our top priorities:
(i) lease space, (ii) sell tickets to the Observatory, (iii) manage our balance sheet,
(iv) identify better growth opportunities, and (v) maintain our sustainability
industry leadership.
New York City is the most resilient city in the world, the place where talented
individuals want to live, work, and play. Our diverse sources of NYC based
NOI include:
    Office, 58% of our NOI, that is top-of-tier and targets the deepest
segment of tenant demand;
    The Iconic Empire State Building Observatory, 25% of our NOI, that is
the #1 ranked attraction in the World by Tripadvisor;
    Retail, 12% of our NOI, that includes our high foot traffic everyday retail
and our growing street retail portfolio on North 6th Street in
Williamsburg, Brooklyn;
    And Multifamily, 5% of our NOI, that benefits from robust
market fundamentals.
Our well-positioned balance sheet is ready to be deployed towards attractive
investment opportunities and we have an aligned team that is determined to
identify and achieve further growth this year. We are excited to build on this
momentum in 2025.
PG 1

2024 Highlights
LEASE SPACE
In 2024, we leased over 1.3 million square feet     our highest annual volume
since 2019. Our net effective rents increased by 13% year-over-year. We
now have achieved more than three years of consecutive, quarterly leased
percentage growth and increased mark-to-market NYC office rent spreads.
NYC offices are a story of haves and have-nots. Our buildings are    haves   
which are, modernized and amenitized, well-located near mass transit,
sustainability leaders, and owned by a financially stable landlord. We attract
informed, quality tenants.
In 2024, we signed 14 full floor new leases with quality tenants, which include
Sol De Janeiro, A.T. Kearney, Bloomsbury Publishing, and Pontera. Booking
Holdings more than doubled their space under lease with us and were part of
Our Manhattan
office portfolio
is over 94%
leased, an
increase of 670
basis points
since 2021 and
160 basis points
year-over-year.
existing tenants    expansions, which totaled 380 thousand square feet of our
total 2024 leasing volume.
Our Manhattan office portfolio is over 94% leased, an increase of 670 basis
points since 2021 and 160 basis points year-over-year. We have experienced
strong leasing momentum across our portfolio, with eight of our nine
Manhattan office buildings over 90% leased. Our largest asset, the Empire
State Building, is 95.5% leased. We achieved heavy leasing volumes over the
last three years     over one million square feet annually on average. We now
focus on the conversion of leased percentage into occupancy and bottomline cash flow.
ESRT   s limited availability of our top-of-tier office space drove rents and
reduce concessions in 2024. We plan to achieve more in 2025.
There has been steady demand from our tenants to rent our amenity spaces
for events. Our Broadway campus includes a popular 150+-person town hall,
added in 2024, and we have a new rooftop space under construction at 1333
Broadway. At the Empire State Building, we transformed previously underutilized concourse level space into an 11,000 square feet, tenants-only lounge,
a multi-sports court that converts to a 275-person presentation room, and
golf simulators.
Our retail portfolio remains strong and steady. We benefit from demand for
both everyday retail and F&B, which serve as an excellent amenity to our
Manhattan office tenants, and high-end street retail on North 6th Street in
Williamsburg, Brooklyn.
ESRT   s limited
availability of
our top-of-tier
office space
drove rents
and reduce
concessions in
2024. We plan
to achieve more
in 2025.
Our multifamily portfolio, with occupancy of 98.5% at year-end, continues
to perform well, and benefits from robust market fundamentals, strategic
property improvements, and improved operations.
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 4/3/2025 Letter Continued (Full PDF)