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Name | Symbol | Market | Type |
---|---|---|---|
Empire State Realty OP LP | AMEX:OGCP | AMEX | Trust |
Price Change | % Change | Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.14 | 1.56% | 9.11 | 9.11 | 9.11 | 9.11 | 1,137 | 21:00:03 |
☒
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
45-4685158
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
Title of Securities
|
Trading Symbol
|
Exchange on which traded
|
|
|
|
Series ES operating partnership units
|
ESBA
|
NYSE Arca, Inc.
|
Series 60 operating partnership units
|
OGCP
|
NYSE Arca, Inc.
|
Series 250 operating partnership units
|
FISK
|
NYSE Arca, Inc.
|
Large accelerated filer
|
☒
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐
|
Smaller reporting company
|
☐
|
|
|
Emerging growth company
|
☐
|
|
September 30, 2020
|
|
December 31, 2019
|
||||
ASSETS
|
(unaudited)
|
|
|
||||
Commercial real estate properties, at cost:
|
|
|
|
||||
Land
|
$
|
201,196
|
|
|
$
|
201,196
|
|
Development costs
|
7,938
|
|
|
7,989
|
|
||
Building and improvements
|
2,925,532
|
|
|
2,900,248
|
|
||
|
3,134,666
|
|
|
3,109,433
|
|
||
Less: accumulated depreciation
|
(927,517
|
)
|
|
(862,534
|
)
|
||
Commercial real estate properties, net
|
2,207,149
|
|
|
2,246,899
|
|
||
Cash and cash equivalents
|
373,088
|
|
|
233,946
|
|
||
Restricted cash
|
54,865
|
|
|
37,651
|
|
||
Tenant and other receivables
|
25,853
|
|
|
25,423
|
|
||
Deferred rent receivables
|
223,886
|
|
|
220,960
|
|
||
Prepaid expenses and other assets
|
50,773
|
|
|
65,453
|
|
||
Deferred costs, net
|
207,774
|
|
|
228,150
|
|
||
Acquired below-market ground leases, net
|
346,693
|
|
|
352,566
|
|
||
Right of use assets
|
29,154
|
|
|
29,307
|
|
||
Goodwill
|
491,479
|
|
|
491,479
|
|
||
Total assets
|
$
|
4,010,714
|
|
|
$
|
3,931,834
|
|
LIABILITIES AND CAPITAL
|
|
|
|
||||
Liabilities:
|
|
|
|
||||
Mortgage notes payable, net
|
$
|
603,178
|
|
|
$
|
605,542
|
|
Senior unsecured notes, net
|
973,106
|
|
|
798,392
|
|
||
Unsecured term loan facilities, net
|
387,309
|
|
|
264,640
|
|
||
Unsecured revolving credit facility, net
|
—
|
|
|
—
|
|
||
Accounts payable and accrued expenses
|
111,918
|
|
|
143,786
|
|
||
Acquired below-market leases, net
|
33,405
|
|
|
39,679
|
|
||
Ground lease liabilities
|
29,154
|
|
|
29,307
|
|
||
Deferred revenue and other liabilities
|
77,572
|
|
|
72,015
|
|
||
Tenants’ security deposits
|
51,257
|
|
|
30,560
|
|
||
Total liabilities
|
2,266,899
|
|
|
1,983,921
|
|
||
Commitments and contingencies
|
|
|
|
|
|
||
Capital:
|
|
|
|
||||
Private perpetual preferred units:
|
|
|
|
||||
Private perpetual preferred units, $13.52 per unit liquidation preference, 4,664,038 and 4,610,383 issued and outstanding in 2020 and 2019, respectively
|
21,936
|
|
|
21,147
|
|
||
Private perpetual preferred units, $16.62 per unit liquidation preference, 1,560,360 issued and outstanding in 2020 and 2019
|
8,004
|
|
|
8,004
|
|
||
Series PR operating partnership units:
|
|
|
|
||||
ESRT partner's capital (2,883,759 and 2,996,520 general partner operating partnership units and 170,108,330 and 178,897,876 limited partner operating partnership units outstanding in 2020 and 2019, respectively)
|
1,069,269
|
|
|
1,228,520
|
|
||
Limited partners' interests (81,140,140 and 81,387,763 limited partner operating partnership units outstanding in 2020 and 2019, respectively)
|
647,465
|
|
|
680,580
|
|
||
Series ES operating partnership units (24,253,763 and 25,809,604 limited partner operating partnership units outstanding in 2020 and 2019, respectively)
|
(1,637
|
)
|
|
7,262
|
|
||
Series 60 operating partnership units (6,639,664 and 7,025,089 limited partner operating partnership units outstanding in 2020 and 2019, respectively)
|
(819
|
)
|
|
1,593
|
|
||
Series 250 operating partnership units (3,350,293 and 3,535,197 limited partner operating partnership units outstanding in 2020 and 2019, respectively)
|
(403
|
)
|
|
807
|
|
||
Total capital
|
1,743,815
|
|
|
1,947,913
|
|
||
Total liabilities and capital
|
$
|
4,010,714
|
|
|
$
|
3,931,834
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Rental revenue
|
$
|
139,909
|
|
|
$
|
150,225
|
|
|
$
|
426,021
|
|
|
$
|
434,713
|
|
Observatory revenue
|
4,419
|
|
|
37,575
|
|
|
24,049
|
|
|
91,039
|
|
||||
Lease termination fees
|
331
|
|
|
2,361
|
|
|
1,575
|
|
|
3,112
|
|
||||
Third-party management and other fees
|
283
|
|
|
304
|
|
|
930
|
|
|
955
|
|
||||
Other revenue and fees
|
1,633
|
|
|
2,408
|
|
|
5,254
|
|
|
6,591
|
|
||||
Total revenues
|
146,575
|
|
|
192,873
|
|
|
457,829
|
|
|
536,410
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
||||||||
Property operating expenses
|
33,836
|
|
|
47,894
|
|
|
105,054
|
|
|
131,076
|
|
||||
Ground rent expenses
|
2,331
|
|
|
2,331
|
|
|
6,994
|
|
|
6,994
|
|
||||
General and administrative expenses
|
14,517
|
|
|
14,421
|
|
|
48,617
|
|
|
44,445
|
|
||||
Observatory expenses
|
5,931
|
|
|
9,089
|
|
|
18,087
|
|
|
25,024
|
|
||||
Real estate taxes
|
31,196
|
|
|
29,599
|
|
|
90,029
|
|
|
86,098
|
|
||||
Impairment charges
|
2,103
|
|
|
—
|
|
|
6,204
|
|
|
—
|
|
||||
Depreciation and amortization
|
44,733
|
|
|
44,260
|
|
|
143,609
|
|
|
135,179
|
|
||||
Total operating expenses
|
134,647
|
|
|
147,594
|
|
|
418,594
|
|
|
428,816
|
|
||||
Total operating income
|
11,928
|
|
|
45,279
|
|
|
39,235
|
|
|
107,594
|
|
||||
Other income (expense):
|
|
|
|
|
|
|
|
||||||||
Interest income
|
366
|
|
|
2,269
|
|
|
2,529
|
|
|
9,907
|
|
||||
Interest expense
|
(23,360
|
)
|
|
(19,426
|
)
|
|
(66,906
|
)
|
|
(60,712
|
)
|
||||
Loss on early extinguishment of debt
|
—
|
|
|
—
|
|
|
(86
|
)
|
|
—
|
|
||||
IPO litigation expense
|
(1,165
|
)
|
|
—
|
|
|
(1,165
|
)
|
|
—
|
|
||||
Income (loss) before income taxes
|
(12,231
|
)
|
|
28,122
|
|
|
(26,393
|
)
|
|
56,789
|
|
||||
Income tax benefit (expense)
|
(38
|
)
|
|
(1,338
|
)
|
|
2,794
|
|
|
(1,219
|
)
|
||||
Net income (loss)
|
(12,269
|
)
|
|
26,784
|
|
|
(23,599
|
)
|
|
55,570
|
|
||||
Private perpetual preferred unit distributions
|
(1,050
|
)
|
|
(234
|
)
|
|
(3,147
|
)
|
|
(702
|
)
|
||||
Net income (loss) attributable to common unitholders
|
$
|
(13,319
|
)
|
|
$
|
26,550
|
|
|
$
|
(26,746
|
)
|
|
$
|
54,868
|
|
|
|
|
|
|
|
|
|
||||||||
Total weighted average units:
|
|
|
|
|
|
|
|
||||||||
Basic
|
280,940
|
|
|
298,151
|
|
|
285,640
|
|
|
298,117
|
|
||||
Diluted
|
280,940
|
|
|
298,151
|
|
|
285,640
|
|
|
298,117
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Earnings per unit attributable to common unitholders:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
(0.05
|
)
|
|
$
|
0.09
|
|
|
$
|
(0.10
|
)
|
|
$
|
0.18
|
|
Diluted
|
$
|
(0.05
|
)
|
|
$
|
0.09
|
|
|
$
|
(0.10
|
)
|
|
$
|
0.18
|
|
|
|
|
|
|
|
|
|
||||||||
Dividends per unit
|
$
|
—
|
|
|
$
|
0.105
|
|
|
$
|
0.210
|
|
|
$
|
0.315
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Net income (loss)
|
$
|
(12,269
|
)
|
|
$
|
26,784
|
|
|
$
|
(23,599
|
)
|
|
$
|
55,570
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||||||
Unrealized gain (loss) on valuation of interest rate swap agreements
|
64
|
|
|
(6,256
|
)
|
|
(19,340
|
)
|
|
(25,992
|
)
|
||||
Less: amount reclassified into interest expense
|
2,873
|
|
|
319
|
|
|
5,986
|
|
|
637
|
|
||||
Other comprehensive income (loss)
|
2,937
|
|
|
(5,937
|
)
|
|
(13,354
|
)
|
|
(25,355
|
)
|
||||
Comprehensive income (loss)
|
$
|
(9,332
|
)
|
|
$
|
20,847
|
|
|
$
|
(36,953
|
)
|
|
$
|
30,215
|
|
|
|
|
|
|
Series PR Operating Partnership Units
|
|
Series ES Operating Partnership Units Limited Partners
|
|
Series 60 Operating Partnership Units Limited Partners
|
|
Series 250 Operating Partnership Units Limited Partners
|
|
|
||||||||||||||||||||||||||||||||
|
|
|
|
|
General Partner
|
|
Limited Partners
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
|
Private Perpetual Preferred Units
|
|
Private Perpetual Preferred Unitholders
|
|
Operating Partnership Units
|
|
Operating Partnership Unitholders
|
|
Operating Partnership Units
|
|
Operating Partnership Unitholders
|
|
Operating Partnership Units
|
|
Operating Partnership Unitholders
|
|
Operating Partnership Units
|
|
Operating Partnership Unitholders
|
|
Operating Partnership Units
|
|
Operating Partnership Unitholders
|
|
Total Capital
|
||||||||||||||||||||
Balance at June 30, 2020
|
6,224
|
|
|
$
|
29,940
|
|
|
173,347
|
|
|
$
|
1,080,221
|
|
|
82,766
|
|
|
$
|
647,520
|
|
|
24,529
|
|
|
$
|
(770
|
)
|
|
6,776
|
|
|
$
|
(588
|
)
|
|
3,405
|
|
|
$
|
(285
|
)
|
|
$
|
1,756,038
|
|
Conversion of operating partnership units to ESRT Partner's Capital
|
—
|
|
|
—
|
|
|
779
|
|
|
2,386
|
|
|
(313
|
)
|
|
(2,435
|
)
|
|
(275
|
)
|
|
23
|
|
|
(136
|
)
|
|
19
|
|
|
(55
|
)
|
|
7
|
|
|
—
|
|
|||||||
Repurchases of common shares
|
—
|
|
|
—
|
|
|
(1,134
|
)
|
|
(7,345
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,345
|
)
|
|||||||
Equity compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
334
|
|
|
(1,313
|
)
|
|
5,170
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,504
|
|
|||||||
Distributions
|
—
|
|
|
(1,050
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,050
|
)
|
|||||||
Net income
|
—
|
|
|
1,050
|
|
|
—
|
|
|
(8,204
|
)
|
|
—
|
|
|
(3,490
|
)
|
|
—
|
|
|
(1,145
|
)
|
|
—
|
|
|
(320
|
)
|
|
—
|
|
|
(160
|
)
|
|
(12,269
|
)
|
|||||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
|
|
1,877
|
|
|
|
|
700
|
|
|
|
|
255
|
|
|
|
|
70
|
|
|
|
|
35
|
|
|
2,937
|
|
||||||||||||
Balance at September 30, 2020
|
6,224
|
|
|
$
|
29,940
|
|
|
172,992
|
|
|
$
|
1,069,269
|
|
|
81,140
|
|
|
$
|
647,465
|
|
|
24,254
|
|
|
$
|
(1,637
|
)
|
|
6,640
|
|
|
$
|
(819
|
)
|
|
3,350
|
|
|
$
|
(403
|
)
|
|
$
|
1,743,815
|
|
|
|
|
|
|
Series PR Operating Partnership Units
|
|
Series ES Operating Partnership Units Limited Partners
|
|
Series 60 Operating Partnership Units Limited Partners
|
|
Series 250 Operating Partnership Units Limited Partners
|
|
|
||||||||||||||||||||||||||||||||
|
|
|
|
|
General Partner
|
|
Limited Partners
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
|
Private Perpetual Preferred Units
|
|
Private Perpetual Preferred Unitholders
|
|
Operating Partnership Units
|
|
Operating Partnership Unitholders
|
|
Operating Partnership Units
|
|
Operating Partnership Unitholders
|
|
Operating Partnership Units
|
|
Operating Partnership Unitholders
|
|
Operating Partnership Units
|
|
Operating Partnership Unitholders
|
|
Operating Partnership Units
|
|
Operating Partnership Unitholders
|
|
Total Capital
|
||||||||||||||||||||
Balance at June 30, 2019
|
1,560
|
|
|
$
|
8,004
|
|
|
178,021
|
|
|
$
|
1,215,647
|
|
|
86,749
|
|
|
$
|
713,039
|
|
|
28,518
|
|
|
$
|
8,508
|
|
|
7,686
|
|
|
$
|
1,871
|
|
|
3,917
|
|
|
$
|
963
|
|
|
$
|
1,948,032
|
|
Conversion of operating partnership units to ESRT Partner's Capital
|
—
|
|
|
—
|
|
|
2,130
|
|
|
12,796
|
|
|
(1,554
|
)
|
|
(12,672
|
)
|
|
(358
|
)
|
|
(85
|
)
|
|
(142
|
)
|
|
(25
|
)
|
|
(75
|
)
|
|
(14
|
)
|
|
—
|
|
|||||||
Equity compensation
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
191
|
|
|
(634
|
)
|
|
3,456
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,647
|
|
|||||||
Distributions
|
—
|
|
|
(234
|
)
|
|
—
|
|
|
(18,907
|
)
|
|
—
|
|
|
(8,880
|
)
|
|
—
|
|
|
(2,960
|
)
|
|
—
|
|
|
(794
|
)
|
|
—
|
|
|
(405
|
)
|
|
(32,180
|
)
|
|||||||
Net income
|
—
|
|
|
234
|
|
|
—
|
|
|
15,882
|
|
|
—
|
|
|
7,114
|
|
|
—
|
|
|
2,547
|
|
|
—
|
|
|
662
|
|
|
—
|
|
|
345
|
|
|
26,784
|
|
|||||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,590
|
)
|
|
—
|
|
|
(1,578
|
)
|
|
—
|
|
|
(556
|
)
|
|
—
|
|
|
(135
|
)
|
|
—
|
|
|
(78
|
)
|
|
(5,937
|
)
|
|||||||
Balance at September 30, 2019
|
1,560
|
|
|
$
|
8,004
|
|
|
180,150
|
|
|
$
|
1,222,019
|
|
|
84,561
|
|
|
$
|
700,479
|
|
|
28,160
|
|
|
$
|
7,454
|
|
|
7,544
|
|
|
$
|
1,579
|
|
|
3,842
|
|
|
$
|
811
|
|
|
$
|
1,940,346
|
|
|
|
|
|
|
Series PR Operating Partnership Units
|
|
Series ES Operating Partnership Units Limited Partners
|
|
Series 60 Operating Partnership Units Limited Partners
|
|
Series 250 Operating Partnership Units Limited Partners
|
|
|
||||||||||||||||||||||||||||||||
|
|
|
|
|
General Partner
|
|
Limited Partners
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
|
Private Perpetual Preferred Units
|
|
Private Perpetual Preferred Unitholders
|
|
Operating Partnership Units
|
|
Operating Partnership Unitholders
|
|
Operating Partnership Units
|
|
Operating Partnership Unitholders
|
|
Operating Partnership Units
|
|
Operating Partnership Unitholders
|
|
Operating Partnership Units
|
|
Operating Partnership Unitholders
|
|
Operating Partnership Units
|
|
Operating Partnership Unitholders
|
|
Total Capital
|
||||||||||||||||||||
Balance at December 31, 2019
|
6,170
|
|
|
$
|
29,151
|
|
|
181,894
|
|
|
$
|
1,228,520
|
|
|
81,388
|
|
|
$
|
680,580
|
|
|
25,810
|
|
|
$
|
7,262
|
|
|
7,025
|
|
|
$
|
1,593
|
|
|
3,535
|
|
|
$
|
807
|
|
|
$
|
1,947,913
|
|
Issuance of private perpetual preferred in exchange for common units
|
54
|
|
|
789
|
|
|
—
|
|
|
—
|
|
|
(97
|
)
|
|
(800
|
)
|
|
43
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Conversion of operating partnership units to ESRT Partner's Capital
|
—
|
|
|
—
|
|
|
5,155
|
|
|
23,903
|
|
|
(2,986
|
)
|
|
(23,726
|
)
|
|
(1,599
|
)
|
|
(157
|
)
|
|
(385
|
)
|
|
(14
|
)
|
|
(185
|
)
|
|
(6
|
)
|
|
—
|
|
|||||||
Repurchases of common units
|
—
|
|
|
—
|
|
|
(14,205
|
)
|
|
(121,950
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(121,950
|
)
|
|||||||
Equity compensation
|
—
|
|
|
—
|
|
|
148
|
|
|
719
|
|
|
2,835
|
|
|
19,455
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20,174
|
|
|||||||
Distributions
|
—
|
|
|
(3,147
|
)
|
|
—
|
|
|
(37,181
|
)
|
|
—
|
|
|
(17,619
|
)
|
|
—
|
|
|
(5,264
|
)
|
|
—
|
|
|
(1,435
|
)
|
|
—
|
|
|
(723
|
)
|
|
(65,369
|
)
|
|||||||
Net income
|
—
|
|
|
3,147
|
|
|
—
|
|
|
(16,502
|
)
|
|
—
|
|
|
(6,954
|
)
|
|
—
|
|
|
(2,327
|
)
|
|
—
|
|
|
(642
|
)
|
|
—
|
|
|
(321
|
)
|
|
(23,599
|
)
|
|||||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,240
|
)
|
|
—
|
|
|
(3,471
|
)
|
|
—
|
|
|
(1,162
|
)
|
|
—
|
|
|
(321
|
)
|
|
—
|
|
|
(160
|
)
|
|
(13,354
|
)
|
|||||||
Balance at September 30, 2020
|
6,224
|
|
|
$
|
29,940
|
|
|
172,992
|
|
|
$
|
1,069,269
|
|
|
81,140
|
|
|
$
|
647,465
|
|
|
24,254
|
|
|
$
|
(1,637
|
)
|
|
6,640
|
|
|
$
|
(819
|
)
|
|
3,350
|
|
|
$
|
(403
|
)
|
|
$
|
1,743,815
|
|
|
|
|
|
|
Series PR Operating Partnership Units
|
|
Series ES Operating Partnership Units Limited Partners
|
|
Series 60 Operating Partnership Units Limited Partners
|
|
Series 250 Operating Partnership Units Limited Partners
|
|
|
||||||||||||||||||||||||||||||||
|
|
|
|
|
General Partner
|
|
Limited Partners
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
|
Private Perpetual Preferred Units
|
|
Private Perpetual Preferred Unitholders
|
|
Operating Partnership Units
|
|
Operating Partnership Unitholders
|
|
Operating Partnership Units
|
|
Operating Partnership Unitholders
|
|
Operating Partnership Units
|
|
Operating Partnership Unitholders
|
|
Operating Partnership Units
|
|
Operating Partnership Unitholders
|
|
Operating Partnership Units
|
|
Operating Partnership Unitholders
|
|
Total Capital
|
||||||||||||||||||||
Balance at December 31, 2018
|
1,560
|
|
|
$
|
8,004
|
|
|
174,912
|
|
|
$
|
1,238,482
|
|
|
86,202
|
|
|
$
|
725,108
|
|
|
30,129
|
|
|
$
|
14,399
|
|
|
8,020
|
|
|
$
|
3,385
|
|
|
4,064
|
|
|
$
|
1,731
|
|
|
$
|
1,991,109
|
|
Conversion of operating partnership units to ESRT Partner's Capital
|
—
|
|
|
—
|
|
|
5,185
|
|
|
21,654
|
|
|
(2,517
|
)
|
|
(20,655
|
)
|
|
(1,969
|
)
|
|
(788
|
)
|
|
(476
|
)
|
|
(143
|
)
|
|
(222
|
)
|
|
(68
|
)
|
|
—
|
|
|||||||
Equity compensation
|
—
|
|
|
—
|
|
|
53
|
|
|
421
|
|
|
876
|
|
|
14,971
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,392
|
|
|||||||
Distributions
|
—
|
|
|
(702
|
)
|
|
—
|
|
|
(56,098
|
)
|
|
—
|
|
|
(26,884
|
)
|
|
—
|
|
|
(9,020
|
)
|
|
—
|
|
|
(2,431
|
)
|
|
—
|
|
|
(1,235
|
)
|
|
(96,370
|
)
|
|||||||
Net income
|
—
|
|
|
702
|
|
|
—
|
|
|
32,646
|
|
|
—
|
|
|
14,760
|
|
|
—
|
|
|
5,322
|
|
|
—
|
|
|
1,427
|
|
|
—
|
|
|
713
|
|
|
55,570
|
|
|||||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
(15,086
|
)
|
|
—
|
|
|
(6,821
|
)
|
|
—
|
|
|
(2,459
|
)
|
|
—
|
|
|
(659
|
)
|
|
—
|
|
|
(330
|
)
|
|
(25,355
|
)
|
|||||||
Balance at September 30, 2019
|
1,560
|
|
|
$
|
8,004
|
|
|
180,150
|
|
|
$
|
1,222,019
|
|
|
84,561
|
|
|
$
|
700,479
|
|
|
28,160
|
|
|
$
|
7,454
|
|
|
7,544
|
|
|
$
|
1,579
|
|
|
3,842
|
|
|
$
|
811
|
|
|
$
|
1,940,346
|
|
|
Nine Months Ended September 30,
|
||||||
|
2020
|
|
2019
|
||||
Cash Flows From Operating Activities
|
|
|
|
||||
Net income (loss)
|
$
|
(23,599
|
)
|
|
$
|
55,570
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
143,609
|
|
|
135,179
|
|
||
Impairment charges
|
6,204
|
|
|
—
|
|
||
Amortization of non-cash items within interest expense
|
6,803
|
|
|
5,400
|
|
||
Amortization of acquired above- and below-market leases, net
|
(2,953
|
)
|
|
(5,780
|
)
|
||
Amortization of acquired below-market ground leases
|
5,873
|
|
|
5,873
|
|
||
Straight-lining of rental revenue
|
(5,878
|
)
|
|
(13,781
|
)
|
||
Equity based compensation
|
20,174
|
|
|
15,392
|
|
||
Settlement of derivative contract
|
(20,281
|
)
|
|
—
|
|
||
Loss on early extinguishment of debt
|
86
|
|
|
—
|
|
||
Increase (decrease) in cash flows due to changes in operating assets and liabilities:
|
|
|
|
||||
Security deposits
|
20,697
|
|
|
(25,961
|
)
|
||
Tenant and other receivables
|
(431
|
)
|
|
149
|
|
||
Deferred leasing costs
|
(8,241
|
)
|
|
(14,513
|
)
|
||
Prepaid expenses and other assets
|
14,680
|
|
|
19,883
|
|
||
Accounts payable and accrued expenses
|
(1,699
|
)
|
|
(2,970
|
)
|
||
Deferred revenue and other liabilities
|
8,509
|
|
|
23,932
|
|
||
Net cash provided by operating activities
|
163,553
|
|
|
198,373
|
|
||
Cash Flows From Investing Activities
|
|
|
|
||||
Short-term investments
|
—
|
|
|
400,000
|
|
||
Development costs
|
(1,336
|
)
|
|
(2
|
)
|
||
Additions to building and improvements
|
(112,018
|
)
|
|
(189,666
|
)
|
||
Net cash (used in) provided by investing activities
|
(113,354
|
)
|
|
210,332
|
|
|
Nine Months Ended September 30,
|
||||||
|
2020
|
|
2019
|
||||
Cash Flows From Financing Activities
|
|
|
|
||||
Repayment of mortgage notes payable
|
(2,939
|
)
|
|
(2,829
|
)
|
||
Proceeds from unsecured senior notes
|
175,000
|
|
|
—
|
|
||
Repayment of unsecured senior notes
|
—
|
|
|
(250,000
|
)
|
||
Proceeds from unsecured term loan
|
175,000
|
|
|
—
|
|
||
Repayment of unsecured term loan
|
(50,000
|
)
|
|
—
|
|
||
Proceeds from unsecured revolving credit facility
|
550,000
|
|
|
—
|
|
||
Repayment of unsecured revolving credit facility
|
(550,000
|
)
|
|
—
|
|
||
Deferred financing costs
|
(3,585
|
)
|
|
—
|
|
||
Repurchases of common units
|
(121,950
|
)
|
|
—
|
|
||
Distributions
|
(65,369
|
)
|
|
(96,370
|
)
|
||
Net cash provided by (used in) financing activities
|
106,157
|
|
|
(349,199
|
)
|
||
Net increase in cash and cash equivalents and restricted cash
|
156,356
|
|
|
59,506
|
|
||
Cash and cash equivalents and restricted cash—beginning of period
|
271,597
|
|
|
270,813
|
|
||
Cash and cash equivalents and restricted cash—end of period
|
$
|
427,953
|
|
|
$
|
330,319
|
|
|
|
|
|
||||
Reconciliation of Cash and Cash Equivalents and Restricted Cash:
|
|
|
|
||||
Cash and cash equivalents at beginning of period
|
$
|
233,946
|
|
|
$
|
204,981
|
|
Restricted cash at beginning of period
|
37,651
|
|
|
65,832
|
|
||
Cash and cash equivalents and restricted cash at beginning of period
|
$
|
271,597
|
|
|
$
|
270,813
|
|
|
|
|
|
||||
Cash and cash equivalents at end of period
|
$
|
373,088
|
|
|
$
|
293,710
|
|
Restricted cash at end of period
|
54,865
|
|
|
36,609
|
|
||
Cash and cash equivalents and restricted cash at end of period
|
$
|
427,953
|
|
|
$
|
330,319
|
|
|
|
|
|
||||
Supplemental disclosures of cash flow information:
|
|
|
|
||||
Cash paid for interest
|
$
|
57,170
|
|
|
$
|
59,173
|
|
Cash paid for income taxes
|
$
|
1,197
|
|
|
$
|
1,589
|
|
|
|
|
|
||||
Non-cash investing and financing activities:
|
|
|
|
||||
Building and improvements included in accounts payable and accrued expenses
|
$
|
63,984
|
|
|
$
|
77,142
|
|
Write-off of fully depreciated assets
|
54,992
|
|
|
26,516
|
|
||
Derivative instruments at fair values included in accounts payable and accrued expenses
|
10,222
|
|
|
28,850
|
|
||
Conversion of limited partners' operating partnership units to ESRT partner's capital
|
23,903
|
|
|
21,654
|
|
||
Issuance of Series 2019 private perpetual preferred in exchange for common units
|
789
|
|
|
—
|
|
||
Right of use assets
|
—
|
|
|
29,452
|
|
||
Ground lease liabilities
|
—
|
|
|
29,452
|
|
|
September 30, 2020
|
|
December 31, 2019
|
||||
Leasing costs
|
$
|
200,684
|
|
|
$
|
199,033
|
|
Acquired in-place lease value and deferred leasing costs
|
186,766
|
|
|
200,296
|
|
||
Acquired above-market leases
|
44,449
|
|
|
49,213
|
|
||
|
431,899
|
|
|
448,542
|
|
||
Less: accumulated amortization
|
(226,802
|
)
|
|
(224,598
|
)
|
||
Total deferred costs, net, excluding net deferred financing costs
|
$
|
205,097
|
|
|
$
|
223,944
|
|
|
September 30, 2020
|
|
December 31, 2019
|
||||
Acquired below-market ground leases
|
$
|
396,916
|
|
|
$
|
396,916
|
|
Less: accumulated amortization
|
(50,223
|
)
|
|
(44,350
|
)
|
||
Acquired below-market ground leases, net
|
$
|
346,693
|
|
|
$
|
352,566
|
|
|
September 30, 2020
|
|
December 31, 2019
|
||||
Acquired below-market leases
|
$
|
(82,891
|
)
|
|
$
|
(100,472
|
)
|
Less: accumulated amortization
|
49,486
|
|
|
60,793
|
|
||
Acquired below-market leases, net
|
$
|
(33,405
|
)
|
|
$
|
(39,679
|
)
|
|
Principal Balance
|
|
As of September 30, 2020
|
||||||||||||
|
September 30, 2020
|
|
December 31, 2019
|
|
Stated
Rate |
|
Effective
Rate(1) |
|
Maturity
Date(2) |
||||||
Mortgage debt collateralized by:
|
|
|
|
|
|
|
|
|
|
||||||
Fixed rate mortgage debt
|
|
|
|
|
|
|
|
|
|
||||||
Metro Center
|
$
|
87,957
|
|
|
$
|
89,650
|
|
|
3.59
|
%
|
|
3.67
|
%
|
|
11/5/2024
|
10 Union Square
|
50,000
|
|
|
50,000
|
|
|
3.70
|
%
|
|
3.97
|
%
|
|
4/1/2026
|
||
1542 Third Avenue
|
30,000
|
|
|
30,000
|
|
|
4.29
|
%
|
|
4.53
|
%
|
|
5/1/2027
|
||
First Stamford Place(3)
|
180,000
|
|
|
180,000
|
|
|
4.28
|
%
|
|
4.77
|
%
|
|
7/1/2027
|
||
1010 Third Avenue and 77 West 55th Street
|
37,673
|
|
|
38,251
|
|
|
4.01
|
%
|
|
4.21
|
%
|
|
1/5/2028
|
||
10 Bank Street
|
32,252
|
|
|
32,920
|
|
|
4.23
|
%
|
|
4.36
|
%
|
|
6/1/2032
|
||
383 Main Avenue
|
30,000
|
|
|
30,000
|
|
|
4.44
|
%
|
|
4.55
|
%
|
|
6/30/2032
|
||
1333 Broadway
|
160,000
|
|
|
160,000
|
|
|
4.21
|
%
|
|
4.29
|
%
|
|
2/5/2033
|
||
Total mortgage debt
|
607,882
|
|
|
610,821
|
|
|
|
|
|
|
|
||||
Senior unsecured notes:(4)
|
|
|
|
|
|
|
|
|
|
|
|
||||
Series A
|
100,000
|
|
|
100,000
|
|
|
3.93
|
%
|
|
3.96
|
%
|
|
3/27/2025
|
||
Series B
|
125,000
|
|
|
125,000
|
|
|
4.09
|
%
|
|
4.12
|
%
|
|
3/27/2027
|
||
Series C
|
125,000
|
|
|
125,000
|
|
|
4.18
|
%
|
|
4.21
|
%
|
|
3/27/2030
|
||
Series D
|
115,000
|
|
|
115,000
|
|
|
4.08
|
%
|
|
4.11
|
%
|
|
1/22/2028
|
||
Series E
|
160,000
|
|
|
160,000
|
|
|
4.26
|
%
|
|
4.27
|
%
|
|
3/22/2030
|
||
Series F
|
175,000
|
|
|
175,000
|
|
|
4.44
|
%
|
|
4.45
|
%
|
|
3/22/2033
|
||
Series G
|
100,000
|
|
|
—
|
|
|
3.61
|
%
|
|
4.89
|
%
|
|
3/17/2032
|
||
Series H
|
75,000
|
|
|
—
|
|
|
3.73
|
%
|
|
5.00
|
%
|
|
3/17/2035
|
||
Unsecured revolving credit facility (4)
|
—
|
|
|
—
|
|
|
LIBOR plus 1.10%
|
|
|
2.03
|
%
|
|
8/29/2021
|
||
Unsecured term loan facility (4)
|
215,000
|
|
|
265,000
|
|
|
LIBOR plus 1.20%
|
|
|
3.77
|
%
|
|
3/19/2025
|
||
Unsecured term loan facility (4)
|
175,000
|
|
|
—
|
|
|
LIBOR plus 1.50%
|
|
|
2.99
|
%
|
|
12/31/2026
|
||
Total principal
|
1,972,882
|
|
|
1,675,821
|
|
|
|
|
|
|
|
||||
Deferred financing costs, net
|
(9,289
|
)
|
|
(7,247
|
)
|
|
|
|
|
|
|
||||
Total
|
$
|
1,963,593
|
|
|
$
|
1,668,574
|
|
|
|
|
|
|
|
(1)
|
The effective rate is the yield as of September 30, 2020 and includes the stated interest rate, deferred financing cost amortization and interest associated with variable to fixed interest rate swap agreements.
|
(2)
|
Pre-payment is generally allowed for each loan upon payment of a customary pre-payment penalty.
|
(3)
|
Represents a $164 million mortgage loan bearing interest at 4.09% and a $16 million loan bearing interest at 6.25%.
|
(4)
|
At September 30, 2020, we were in compliance with all debt covenants.
|
Year
|
Amortization
|
|
Maturities
|
|
Total
|
||||||
2020
|
$
|
998
|
|
|
$
|
—
|
|
|
$
|
998
|
|
2021
|
4,090
|
|
|
—
|
|
|
4,090
|
|
|||
2022
|
5,628
|
|
|
—
|
|
|
5,628
|
|
|||
2023
|
7,876
|
|
|
—
|
|
|
7,876
|
|
|||
2024
|
7,958
|
|
|
77,675
|
|
|
85,633
|
|
|||
Thereafter
|
25,909
|
|
|
1,842,748
|
|
|
1,868,657
|
|
|||
Total
|
$
|
52,459
|
|
|
$
|
1,920,423
|
|
|
$
|
1,972,882
|
|
|
|
September 30, 2020
|
|
December 31, 2019
|
||||
Financing costs
|
|
$
|
28,814
|
|
|
$
|
25,315
|
|
Less: accumulated amortization
|
|
(16,848
|
)
|
|
(13,863
|
)
|
||
Total deferred financing costs, net
|
|
$
|
11,966
|
|
|
$
|
11,452
|
|
|
September 30, 2020
|
|
December 31, 2019
|
||||
Accrued capital expenditures
|
$
|
63,984
|
|
|
$
|
90,910
|
|
Accounts payable and accrued expenses
|
34,114
|
|
|
35,084
|
|
||
Interest rate swap agreements liability
|
10,222
|
|
|
13,330
|
|
||
Accrued interest payable
|
2,792
|
|
|
3,699
|
|
||
Due to affiliated companies
|
806
|
|
|
763
|
|
||
Total accounts payable and accrued expenses
|
$
|
111,918
|
|
|
$
|
143,786
|
|
|
|
|
|
September 30, 2020
|
|
December 31, 2019
|
||||||||||||||||
Derivative
|
|
Notional Amount
|
Receive Rate
|
Pay Rate
|
Effective Date
|
Expiration Date
|
|
Asset
|
Liability
|
|
Asset
|
Liability
|
||||||||||
Interest rate swap
|
|
$
|
265,000
|
|
1 Month LIBOR
|
2.1485%
|
August 31, 2017
|
August 24, 2022
|
|
$
|
—
|
|
$
|
(10,222
|
)
|
|
$
|
—
|
|
$
|
(4,247
|
)
|
Interest rate swap
|
|
125,000
|
|
3 Month LIBOR
|
2.9580%
|
July 1, 2019
|
N/A
|
|
—
|
|
—
|
|
|
—
|
|
(9,083
|
)
|
|||||
|
|
|
|
|
|
|
|
$
|
—
|
|
$
|
(10,222
|
)
|
|
$
|
—
|
|
$
|
(13,330
|
)
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
Effects of Cash Flow Hedges
|
|
September 30, 2020
|
|
September 30, 2019
|
|
September 30, 2020
|
|
September 30, 2019
|
||||||||
Amount of gain (loss) recognized in other comprehensive income (loss)
|
|
$
|
64
|
|
|
$
|
(6,256
|
)
|
|
$
|
(19,340
|
)
|
|
$
|
(25,992
|
)
|
Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into interest expense
|
|
(2,873
|
)
|
|
(319
|
)
|
|
(5,986
|
)
|
|
(637
|
)
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
Effects of Cash Flow Hedges
|
|
September 30, 2020
|
|
September 30, 2019
|
|
September 30, 2020
|
|
September 30, 2019
|
||||||||
Total interest (expense) presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded
|
|
$
|
(23,360
|
)
|
|
$
|
(19,426
|
)
|
|
$
|
(66,906
|
)
|
|
$
|
(60,712
|
)
|
Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into interest expense
|
|
(2,873
|
)
|
|
(319
|
)
|
|
(5,986
|
)
|
|
(637
|
)
|
|
September 30, 2020
|
||||||||||||||||||
|
|
|
Estimated Fair Value
|
||||||||||||||||
|
Carrying
Value |
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Interest rate swaps included in accounts payable and accrued expenses
|
$
|
10,222
|
|
|
$
|
10,222
|
|
|
$
|
—
|
|
|
$
|
10,222
|
|
|
$
|
—
|
|
Mortgage notes payable
|
603,178
|
|
|
636,032
|
|
|
—
|
|
|
—
|
|
|
636,032
|
|
|||||
Senior unsecured notes - Series A, B, C, D, E, F, G and H
|
973,106
|
|
|
1,055,971
|
|
|
—
|
|
|
—
|
|
|
1,055,971
|
|
|||||
Unsecured term loan facilities
|
387,309
|
|
|
390,000
|
|
|
—
|
|
|
—
|
|
|
390,000
|
|
|
December 31, 2019
|
||||||||||||||||||
|
|
|
Estimated Fair Value
|
||||||||||||||||
|
Carrying
Value |
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Interest rate swaps included in accounts payable and accrued expenses
|
$
|
13,330
|
|
|
$
|
13,330
|
|
|
$
|
—
|
|
|
$
|
13,330
|
|
|
$
|
—
|
|
Mortgage notes payable
|
605,542
|
|
|
629,609
|
|
|
—
|
|
|
—
|
|
|
629,609
|
|
|||||
Senior unsecured notes - Series A, B, C, D, E and F
|
798,392
|
|
|
843,394
|
|
|
—
|
|
|
—
|
|
|
843,394
|
|
|||||
Unsecured term loan facility
|
264,640
|
|
|
265,000
|
|
|
—
|
|
|
—
|
|
|
265,000
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
Rental revenue
|
|
September 30, 2020
|
|
September 30, 2019
|
|
September 30, 2020
|
|
September 30, 2019
|
||||||||
Fixed payments
|
|
$
|
122,976
|
|
|
$
|
129,030
|
|
|
$
|
375,882
|
|
|
$
|
380,647
|
|
Variable payments
|
|
16,933
|
|
|
21,195
|
|
|
50,139
|
|
|
54,066
|
|
||||
Total rental revenue
|
|
$
|
139,909
|
|
|
$
|
150,225
|
|
|
$
|
426,021
|
|
|
$
|
434,713
|
|
Remainder of 2020
|
$
|
126,997
|
|
2021
|
502,160
|
|
|
2022
|
484,131
|
|
|
2023
|
459,992
|
|
|
2024
|
423,039
|
|
|
Thereafter
|
2,139,096
|
|
|
|
$
|
4,135,415
|
|
Remainder of 2020
|
$
|
380
|
|
2021
|
1,518
|
|
|
2022
|
1,518
|
|
|
2023
|
1,518
|
|
|
2024
|
1,518
|
|
|
Thereafter
|
66,780
|
|
|
Total undiscounted cash flows
|
73,232
|
|
|
Present value discount
|
(44,078
|
)
|
|
Ground lease liabilities
|
$
|
29,154
|
|
Period
|
Total Number of Shares Purchased
|
|
Average Price Paid per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plan
|
|
Maximum Approximate Dollar Value Available for Future Purchase (in thousands)
|
||||||
July 2020
|
656,318
|
|
|
$
|
6.72
|
|
|
656,318
|
|
|
$
|
380,982
|
|
August 2020
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
380,982
|
|
September 2020
|
477,620
|
|
|
$
|
6.14
|
|
|
477,620
|
|
|
$
|
378,050
|
|
October 2020
|
1,952,013
|
|
|
$
|
6.21
|
|
|
1,952,013
|
|
|
$
|
365,934
|
|
|
Restricted Stock
|
|
LTIP Units
|
|
Weighted Average Grant Fair Value
|
||||
Unvested balance at December 31, 2019
|
118,918
|
|
|
5,986,569
|
|
|
$
|
9.73
|
|
Vested
|
(57,599
|
)
|
|
(1,052,692
|
)
|
|
14.04
|
|
|
Granted
|
161,449
|
|
|
5,011,693
|
|
|
5.43
|
|
|
Forfeited or unearned
|
(1,136
|
)
|
|
(2,201,453
|
)
|
|
7.57
|
|
|
Unvested balance at September 30, 2020
|
221,632
|
|
|
7,744,117
|
|
|
$
|
6.93
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30, 2020
|
|
September 30, 2019
|
|
September 30, 2020
|
|
September 30, 2019
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net income (loss)
|
$
|
(12,269
|
)
|
|
$
|
26,784
|
|
|
$
|
(23,599
|
)
|
|
$
|
55,570
|
|
Private perpetual preferred unit distributions
|
(1,050
|
)
|
|
(234
|
)
|
|
(3,147
|
)
|
|
(702
|
)
|
||||
Earnings allocated to unvested units
|
(342
|
)
|
|
(243
|
)
|
|
(985
|
)
|
|
(646
|
)
|
||||
Net income (loss) attributable to common unitholders - basic and diluted
|
$
|
(13,661
|
)
|
|
$
|
26,307
|
|
|
$
|
(27,731
|
)
|
|
$
|
54,222
|
|
|
|
|
|
|
|
|
|
||||||||
Denominator:
|
|
|
|
|
|
|
|
||||||||
Weighted average units outstanding - basic
|
280,940
|
|
|
298,151
|
|
|
285,640
|
|
|
298,117
|
|
||||
Effect of dilutive securities:
|
|
|
|
|
|
|
|
||||||||
Stock-based compensation plans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Weighted average units outstanding - diluted
|
280,940
|
|
|
298,151
|
|
|
285,640
|
|
|
298,117
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Earnings per share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
(0.05
|
)
|
|
$
|
0.09
|
|
|
$
|
(0.10
|
)
|
|
$
|
0.18
|
|
Diluted
|
$
|
(0.05
|
)
|
|
$
|
0.09
|
|
|
$
|
(0.10
|
)
|
|
$
|
0.18
|
|
|
|
Three Months Ended September 30, 2020
|
||||||||||||||
|
|
Real Estate
|
|
Observatory
|
|
Intersegment Elimination
|
|
Total
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
||||||||
Rental revenue
|
|
$
|
139,909
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
139,909
|
|
Intercompany rental revenue
|
|
(2,233
|
)
|
|
—
|
|
|
2,233
|
|
|
—
|
|
||||
Observatory revenue
|
|
—
|
|
|
4,419
|
|
|
—
|
|
|
4,419
|
|
||||
Lease termination fees
|
|
331
|
|
|
—
|
|
|
—
|
|
|
331
|
|
||||
Third-party management and other fees
|
|
283
|
|
|
—
|
|
|
—
|
|
|
283
|
|
||||
Other revenue and fees
|
|
1,633
|
|
|
—
|
|
|
—
|
|
|
1,633
|
|
||||
Total revenues
|
|
139,923
|
|
|
4,419
|
|
|
2,233
|
|
|
146,575
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
|
||||||||
Property operating expenses
|
|
33,836
|
|
|
—
|
|
|
—
|
|
|
33,836
|
|
||||
Intercompany rent expense
|
|
—
|
|
|
(2,233
|
)
|
|
2,233
|
|
|
—
|
|
||||
Ground rent expense
|
|
2,331
|
|
|
—
|
|
|
—
|
|
|
2,331
|
|
||||
General and administrative expenses
|
|
14,517
|
|
|
—
|
|
|
—
|
|
|
14,517
|
|
||||
Observatory expenses
|
|
—
|
|
|
5,931
|
|
|
—
|
|
|
5,931
|
|
||||
Real estate taxes
|
|
31,196
|
|
|
—
|
|
|
—
|
|
|
31,196
|
|
||||
Impairment charge
|
|
2,103
|
|
|
—
|
|
|
—
|
|
|
2,103
|
|
||||
Depreciation and amortization
|
|
44,679
|
|
|
54
|
|
|
—
|
|
|
44,733
|
|
||||
Total operating expenses
|
|
128,662
|
|
|
3,752
|
|
|
2,233
|
|
|
134,647
|
|
||||
Total operating income (loss)
|
|
11,261
|
|
|
667
|
|
|
—
|
|
|
11,928
|
|
||||
Other income (expense):
|
|
|
|
|
|
|
|
|
||||||||
Interest income
|
|
360
|
|
|
6
|
|
|
—
|
|
|
366
|
|
||||
Interest expense
|
|
(23,360
|
)
|
|
—
|
|
|
—
|
|
|
(23,360
|
)
|
||||
Loss on early extinguishment of debt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
IPO litigation expense
|
|
(1,165
|
)
|
|
—
|
|
|
—
|
|
|
(1,165
|
)
|
||||
Income (loss) before income taxes
|
|
(12,904
|
)
|
|
673
|
|
|
—
|
|
|
(12,231
|
)
|
||||
Income tax (expense) benefit
|
|
(196
|
)
|
|
158
|
|
|
—
|
|
|
(38
|
)
|
||||
Net income (loss)
|
|
$
|
(13,100
|
)
|
|
$
|
831
|
|
|
$
|
—
|
|
|
$
|
(12,269
|
)
|
Segment assets
|
|
$
|
3,771,476
|
|
|
$
|
239,238
|
|
|
$
|
—
|
|
|
$
|
4,010,714
|
|
Expenditures for segment assets
|
|
$
|
30,831
|
|
|
$
|
516
|
|
|
$
|
—
|
|
|
$
|
31,347
|
|
|
|
Three Months Ended September 30, 2019
|
||||||||||||||
|
|
Real Estate
|
|
Observatory
|
|
Intersegment Elimination
|
|
Total
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
||||||||
Rental revenue
|
|
$
|
150,225
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
150,225
|
|
Intercompany rental revenue
|
|
23,242
|
|
|
—
|
|
|
(23,242
|
)
|
|
—
|
|
||||
Observatory revenue
|
|
—
|
|
|
37,575
|
|
|
—
|
|
|
37,575
|
|
||||
Lease termination fees
|
|
2,361
|
|
|
—
|
|
|
—
|
|
|
2,361
|
|
||||
Third-party management and other fees
|
|
304
|
|
|
—
|
|
|
—
|
|
|
304
|
|
||||
Other revenue and fees
|
|
2,408
|
|
|
—
|
|
|
—
|
|
|
2,408
|
|
||||
Total revenues
|
|
178,540
|
|
|
37,575
|
|
|
(23,242
|
)
|
|
192,873
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
|
||||||||
Property operating expenses
|
|
47,894
|
|
|
—
|
|
|
—
|
|
|
47,894
|
|
||||
Intercompany rent expense
|
|
—
|
|
|
23,242
|
|
|
(23,242
|
)
|
|
—
|
|
||||
Ground rent expense
|
|
2,331
|
|
|
—
|
|
|
—
|
|
|
2,331
|
|
||||
General and administrative expenses
|
|
14,421
|
|
|
—
|
|
|
—
|
|
|
14,421
|
|
||||
Observatory expenses
|
|
—
|
|
|
9,089
|
|
|
—
|
|
|
9,089
|
|
||||
Real estate taxes
|
|
29,599
|
|
|
—
|
|
|
—
|
|
|
29,599
|
|
||||
Depreciation and amortization
|
|
44,253
|
|
|
7
|
|
|
—
|
|
|
44,260
|
|
||||
Total operating expenses
|
|
138,498
|
|
|
32,338
|
|
|
(23,242
|
)
|
|
147,594
|
|
||||
Total operating income
|
|
40,042
|
|
|
5,237
|
|
|
—
|
|
|
45,279
|
|
||||
Other income (expense):
|
|
|
|
|
|
|
|
|
||||||||
Interest income
|
|
2,269
|
|
|
—
|
|
|
—
|
|
|
2,269
|
|
||||
Interest expense
|
|
(19,426
|
)
|
|
—
|
|
|
—
|
|
|
(19,426
|
)
|
||||
Income before income taxes
|
|
22,885
|
|
|
5,237
|
|
|
—
|
|
|
28,122
|
|
||||
Income tax expense
|
|
(267
|
)
|
|
(1,071
|
)
|
|
—
|
|
|
(1,338
|
)
|
||||
Net income
|
|
$
|
22,618
|
|
|
$
|
4,166
|
|
|
$
|
—
|
|
|
$
|
26,784
|
|
Segment assets
|
|
$
|
3,659,592
|
|
|
$
|
265,725
|
|
|
$
|
—
|
|
|
$
|
3,925,317
|
|
Expenditures for segment assets
|
|
$
|
42,901
|
|
|
$
|
18,375
|
|
|
$
|
—
|
|
|
$
|
61,276
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Nine Months Ended September 30, 2020
|
||||||||||||||
|
|
Real Estate
|
|
Observatory
|
|
Intersegment Elimination
|
|
Total
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
||||||||
Rental revenue
|
|
$
|
426,021
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
426,021
|
|
Intercompany rental revenue
|
|
13,356
|
|
|
—
|
|
|
(13,356
|
)
|
|
—
|
|
||||
Observatory revenue
|
|
—
|
|
|
24,049
|
|
|
—
|
|
|
24,049
|
|
||||
Lease termination fees
|
|
1,575
|
|
|
—
|
|
|
—
|
|
|
1,575
|
|
||||
Third-party management and other fees
|
|
930
|
|
|
—
|
|
|
—
|
|
|
930
|
|
||||
Other revenue and fees
|
|
5,254
|
|
|
—
|
|
|
—
|
|
|
5,254
|
|
||||
Total revenues
|
|
447,136
|
|
|
24,049
|
|
|
(13,356
|
)
|
|
457,829
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
|
||||||||
Property operating expenses
|
|
105,054
|
|
|
—
|
|
|
—
|
|
|
105,054
|
|
||||
Intercompany rent expense
|
|
—
|
|
|
13,356
|
|
|
(13,356
|
)
|
|
—
|
|
||||
Ground rent expense
|
|
6,994
|
|
|
—
|
|
|
—
|
|
|
6,994
|
|
||||
General and administrative expenses
|
|
48,617
|
|
|
—
|
|
|
—
|
|
|
48,617
|
|
||||
Observatory expenses
|
|
—
|
|
|
18,087
|
|
|
—
|
|
|
18,087
|
|
||||
Real estate taxes
|
|
90,029
|
|
|
—
|
|
|
—
|
|
|
90,029
|
|
||||
Impairment charges
|
|
6,204
|
|
|
—
|
|
|
—
|
|
|
6,204
|
|
||||
Depreciation and amortization
|
|
143,522
|
|
|
87
|
|
|
—
|
|
|
143,609
|
|
||||
Total operating expenses
|
|
400,420
|
|
|
31,530
|
|
|
(13,356
|
)
|
|
418,594
|
|
||||
Total operating income (loss)
|
|
46,716
|
|
|
(7,481
|
)
|
|
—
|
|
|
39,235
|
|
||||
Other income (expense):
|
|
|
|
|
|
|
|
|
||||||||
Interest income
|
|
2,438
|
|
|
91
|
|
|
—
|
|
|
2,529
|
|
||||
Interest expense
|
|
(66,906
|
)
|
|
—
|
|
|
—
|
|
|
(66,906
|
)
|
||||
Loss on early extinguishment of debt
|
|
(86
|
)
|
|
—
|
|
|
—
|
|
|
(86
|
)
|
||||
IPO litigation expense
|
|
(1,165
|
)
|
|
—
|
|
|
—
|
|
|
(1,165
|
)
|
||||
Loss before income taxes
|
|
(19,003
|
)
|
|
(7,390
|
)
|
|
—
|
|
|
(26,393
|
)
|
||||
Income tax (expense) benefit
|
|
(692
|
)
|
|
3,486
|
|
|
—
|
|
|
2,794
|
|
||||
Net loss
|
|
$
|
(19,695
|
)
|
|
$
|
(3,904
|
)
|
|
$
|
—
|
|
|
$
|
(23,599
|
)
|
Expenditures for segment assets
|
|
$
|
77,503
|
|
|
$
|
2,748
|
|
|
$
|
—
|
|
|
$
|
80,251
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Nine Months Ended September 30, 2019
|
||||||||||||||
|
|
Real Estate
|
|
Observatory
|
|
Intersegment Elimination
|
|
Total
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
||||||||
Rental revenue
|
|
$
|
434,713
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
434,713
|
|
Intercompany rental revenue
|
|
58,754
|
|
|
—
|
|
|
(58,754
|
)
|
|
—
|
|
||||
Observatory revenue
|
|
—
|
|
|
91,039
|
|
|
—
|
|
|
91,039
|
|
||||
Lease termination fees
|
|
3,112
|
|
|
—
|
|
|
—
|
|
|
3,112
|
|
||||
Third-party management and other fees
|
|
955
|
|
|
—
|
|
|
—
|
|
|
955
|
|
||||
Other revenue and fees
|
|
6,591
|
|
|
—
|
|
|
—
|
|
|
6,591
|
|
||||
Total revenues
|
|
504,125
|
|
|
91,039
|
|
|
(58,754
|
)
|
|
536,410
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
|
||||||||
Property operating expenses
|
|
131,076
|
|
|
—
|
|
|
—
|
|
|
131,076
|
|
||||
Intercompany rent expense
|
|
—
|
|
|
58,754
|
|
|
(58,754
|
)
|
|
—
|
|
||||
Ground rent expense
|
|
6,994
|
|
|
—
|
|
|
—
|
|
|
6,994
|
|
||||
General and administrative expenses
|
|
44,445
|
|
|
—
|
|
|
—
|
|
|
44,445
|
|
||||
Observatory expenses
|
|
—
|
|
|
25,024
|
|
|
—
|
|
|
25,024
|
|
||||
Real estate taxes
|
|
86,098
|
|
|
—
|
|
|
—
|
|
|
86,098
|
|
||||
Depreciation and amortization
|
|
135,157
|
|
|
22
|
|
|
—
|
|
|
135,179
|
|
||||
Total operating expenses
|
|
403,770
|
|
|
83,800
|
|
|
(58,754
|
)
|
|
428,816
|
|
||||
Total operating income
|
|
100,355
|
|
|
7,239
|
|
|
—
|
|
|
107,594
|
|
||||
Other income (expense):
|
|
|
|
|
|
|
|
|
||||||||
Interest income
|
|
9,907
|
|
|
—
|
|
|
—
|
|
|
9,907
|
|
||||
Interest expense
|
|
(60,712
|
)
|
|
—
|
|
|
—
|
|
|
(60,712
|
)
|
||||
Income before income taxes
|
|
49,550
|
|
|
7,239
|
|
|
—
|
|
|
56,789
|
|
||||
Income tax expense
|
|
(762
|
)
|
|
(457
|
)
|
|
—
|
|
|
(1,219
|
)
|
||||
Net income
|
|
$
|
48,788
|
|
|
$
|
6,782
|
|
|
$
|
—
|
|
|
$
|
55,570
|
|
Expenditures for segment assets
|
|
$
|
134,865
|
|
|
$
|
46,703
|
|
|
$
|
—
|
|
|
$
|
181,568
|
|
•
|
Incurred net loss of $13.3 million and achieved Core Funds From Operations of $34.9 million.
|
•
|
Same-Store Property Cash NOI excluding lease termination fees was up 9.3% from the third quarter of 2019 primarily driven by lower property operating expenses and free rent burn-off, partially offset by lower revenue.
|
•
|
Strong liquidity position of $1.5 billion as of September 30, 2020, comprised of $373.0 million of cash plus an additional $1.1 billion available under our revolving credit facility. Moreover, we have no debt maturity until 2024.
|
•
|
In the third quarter and through October 30, 2020, we repurchased $19.5 million of our common stock at a weighted average price of $6.31 per share, which brings the year-to-date total to $134.1 million at a weighted average price of $8.30 per share.
|
•
|
For the total portfolio in the third quarter, we signed 18 new, renewal, and expansion leases, representing 247,449 rentable square feet.
|
•
|
Collected 94% of third quarter 2020 total billings with 96% for office tenants and 84% for retail tenants. Through October 31, 2020, collected 93% of October total billings, with 94% for office tenants and 86% for retail tenants.
|
•
|
Year-to-date through September 30th, we reduced property operating expenses by $26 million compared to the prior year, driven by reduced tenant utilization and our cost reduction initiatives.
|
•
|
On July 13, 2020, we announced the appointment of R. Paige Hood to our Board of Directors, effective August 1, 2020, and the departure of William H. Berkman, effective July 31, 2020.
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2020
|
|
2019
|
||||||||||
Office leases
|
$
|
106,774
|
|
|
63.9
|
%
|
|
$
|
106,848
|
|
|
45.1
|
%
|
Retail leases
|
5,177
|
|
|
3.1
|
%
|
|
5,566
|
|
|
2.4
|
%
|
||
Tenant reimbursements & other income
|
16,358
|
|
|
9.8
|
%
|
|
21,356
|
|
|
9.0
|
%
|
||
Observatory operations
|
24,049
|
|
|
14.4
|
%
|
|
91,039
|
|
|
38.5
|
%
|
||
Broadcasting licenses and leases
|
14,793
|
|
|
8.8
|
%
|
|
11,945
|
|
|
5.0
|
%
|
||
Total
|
$
|
167,151
|
|
|
100.0
|
%
|
|
$
|
236,754
|
|
|
100.0
|
%
|
Collections as of October 30, 2020
|
Second Quarter 2020
|
|
Third Quarter 2020
|
|
October 2020
|
|||
Total billings collected
|
85
|
%
|
|
94
|
%
|
|
93
|
%
|
Rent deferrals
|
4
|
%
|
|
—
|
%
|
|
—
|
%
|
Security deposits collected
|
8
|
%
|
|
1
|
%
|
|
—
|
%
|
Uncollected - covered by security deposit
|
1
|
%
|
|
2
|
%
|
|
3
|
%
|
Uncollected
|
2
|
%
|
|
3
|
%
|
|
4
|
%
|
Total
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
•
|
Named Executive Officer compensation:
|
▪
|
($0.4) million from reduction in annual base salary for Anthony E. Malkin, our Chairman, President and Chief Executive Officer, and Thomas P. Durels, our Executive Vice President, Real Estate, through December 31, 2020;
|
▪
|
($1.2) million from the change in age requirement from 60 to 65 for the accounting vesting period for time-based equity compensation; and
|
▪
|
($2.7) million from the departure of our former Chief Operating Officer.
|
•
|
Other corporate overhead:
|
▪
|
($1.5) million of net changes from the addition of investment personnel and reductions in executive and corporate staff, and temporary corporate salary reductions through December 31, 2020; and
|
▪
|
Balance from department budget cuts and lower anticipated spending due to the COVID-19 pandemic.
|
•
|
In addition, we announced a $3.9 million reduction in 2021 NEO annual equity compensation, comprised of a $2.7 million reduction for Mr. Malkin and $1.2 million reduction for Mr. Durels.
|
•
|
Property operating expenses
|
▪
|
Year-to-date through September 30th, we reduced property operating expenses by $26 million compared to the prior year period, driven by reduced tenant utilization and our cost reduction initiatives.
|
▪
|
$4 million on an annualized basis of permanent cost reductions due to staffing and other reductions.
|
•
|
Capital expenditures
|
▪
|
$24 million in lower planned 2020 capital expenditures for building improvements compared to 2019 due to focus only on mandatory spending and work previously commenced.
|
|
|
|
|
|
|
|
|
|||||||
|
Three Months Ended September 30,
|
|
|
|
|
|||||||||
|
2020
|
|
2019
|
|
Change
|
|
%
|
|||||||
Revenues:
|
|
|
|
|
|
|
|
|||||||
Rental revenue
|
$
|
139,909
|
|
|
$
|
150,225
|
|
|
$
|
(10,316
|
)
|
|
(6.9
|
)%
|
Observatory revenue
|
4,419
|
|
|
37,575
|
|
|
(33,156
|
)
|
|
(88.2
|
)%
|
|||
Lease termination fees
|
331
|
|
|
2,361
|
|
|
(2,030
|
)
|
|
(86.0
|
)%
|
|||
Third-party management and other fees
|
283
|
|
|
304
|
|
|
(21
|
)
|
|
(6.9
|
)%
|
|||
Other revenues and fees
|
1,633
|
|
|
2,408
|
|
|
(775
|
)
|
|
(32.2
|
)%
|
|||
Total revenues
|
146,575
|
|
|
192,873
|
|
|
(46,298
|
)
|
|
(24.0
|
)%
|
|||
Operating expenses:
|
|
|
|
|
|
|
|
|||||||
Property operating expenses
|
33,836
|
|
|
47,894
|
|
|
14,058
|
|
|
29.4
|
%
|
|||
Ground rent expenses
|
2,331
|
|
|
2,331
|
|
|
—
|
|
|
—
|
%
|
|||
General and administrative expenses
|
14,517
|
|
|
14,421
|
|
|
(96
|
)
|
|
(0.7
|
)%
|
|||
Observatory expenses
|
5,931
|
|
|
9,089
|
|
|
3,158
|
|
|
34.7
|
%
|
|||
Real estate taxes
|
31,196
|
|
|
29,599
|
|
|
(1,597
|
)
|
|
(5.4
|
)%
|
|||
Impairment charge
|
2,103
|
|
|
—
|
|
|
(2,103
|
)
|
|
(100.0
|
)%
|
|||
Depreciation and amortization
|
44,733
|
|
|
44,260
|
|
|
(473
|
)
|
|
(1.1
|
)%
|
|||
Total operating expenses
|
134,647
|
|
|
147,594
|
|
|
12,947
|
|
|
8.8
|
%
|
|||
Operating income (loss)
|
11,928
|
|
|
45,279
|
|
|
(33,351
|
)
|
|
(73.7
|
)%
|
|||
Other income (expense):
|
|
|
|
|
|
|
|
|||||||
Interest income
|
366
|
|
|
2,269
|
|
|
(1,903
|
)
|
|
(83.9
|
)%
|
|||
Interest expense
|
(23,360
|
)
|
|
(19,426
|
)
|
|
(3,934
|
)
|
|
(20.3
|
)%
|
|||
IPO litigation expense
|
(1,165
|
)
|
|
—
|
|
|
(1,165
|
)
|
|
(100.0
|
)%
|
|||
Income (loss) before income taxes
|
(12,231
|
)
|
|
28,122
|
|
|
(40,353
|
)
|
|
(143.5
|
)%
|
|||
Income tax benefit (expense)
|
(38
|
)
|
|
(1,338
|
)
|
|
1,300
|
|
|
97.2
|
%
|
|||
Net income (loss)
|
(12,269
|
)
|
|
26,784
|
|
|
(39,053
|
)
|
|
(145.8
|
)%
|
|||
Private perpetual preferred unit distributions
|
(1,050
|
)
|
|
(234
|
)
|
|
(816
|
)
|
|
(348.7
|
)%
|
|||
Net income (loss) attributable to common unitholders
|
$
|
(13,319
|
)
|
|
$
|
26,550
|
|
|
$
|
(39,869
|
)
|
|
(150.2
|
)%
|
|
Nine Months Ended September 30,
|
|
|
|
|
|||||||||
|
2020
|
|
2019
|
|
Change
|
|
%
|
|||||||
Revenues:
|
|
|
|
|
|
|
|
|||||||
Rental revenue
|
$
|
426,021
|
|
|
$
|
434,713
|
|
|
$
|
(8,692
|
)
|
|
(2.0
|
)%
|
Observatory revenue
|
24,049
|
|
|
91,039
|
|
|
(66,990
|
)
|
|
(73.6
|
)%
|
|||
Lease termination fees
|
1,575
|
|
|
3,112
|
|
|
(1,537
|
)
|
|
(49.4
|
)%
|
|||
Third-party management and other fees
|
930
|
|
|
955
|
|
|
(25
|
)
|
|
(2.6
|
)%
|
|||
Other revenues and fees
|
5,254
|
|
|
6,591
|
|
|
(1,337
|
)
|
|
(20.3
|
)%
|
|||
Total revenues
|
457,829
|
|
|
536,410
|
|
|
(78,581
|
)
|
|
(14.6
|
)%
|
|||
Operating expenses:
|
|
|
|
|
|
|
|
|||||||
Property operating expenses
|
105,054
|
|
|
131,076
|
|
|
26,022
|
|
|
19.9
|
%
|
|||
Ground rent expenses
|
6,994
|
|
|
6,994
|
|
|
—
|
|
|
—
|
%
|
|||
General and administrative expenses
|
48,617
|
|
|
44,445
|
|
|
(4,172
|
)
|
|
(9.4
|
)%
|
|||
Observatory expenses
|
18,087
|
|
|
25,024
|
|
|
6,937
|
|
|
27.7
|
%
|
|||
Real estate taxes
|
90,029
|
|
|
86,098
|
|
|
(3,931
|
)
|
|
(4.6
|
)%
|
|||
Impairment charges
|
6,204
|
|
|
—
|
|
|
(6,204
|
)
|
|
(100.0
|
)%
|
|||
Depreciation and amortization
|
143,609
|
|
|
135,179
|
|
|
(8,430
|
)
|
|
(6.2
|
)%
|
|||
Total operating expenses
|
418,594
|
|
|
428,816
|
|
|
10,222
|
|
|
2.4
|
%
|
|||
Operating income (loss)
|
39,235
|
|
|
107,594
|
|
|
(68,359
|
)
|
|
(63.5
|
)%
|
|||
Other income (expense):
|
|
|
|
|
|
|
|
|||||||
Interest income
|
2,529
|
|
|
9,907
|
|
|
(7,378
|
)
|
|
(74.5
|
)%
|
|||
Interest expense
|
(66,906
|
)
|
|
(60,712
|
)
|
|
(6,194
|
)
|
|
(10.2
|
)%
|
|||
Loss on early extinguishment of debt
|
(86
|
)
|
|
—
|
|
|
(86
|
)
|
|
(100.0
|
)%
|
|||
IPO litigation expense
|
(1,165
|
)
|
|
—
|
|
|
(1,165
|
)
|
|
(100.0
|
)%
|
|||
Income (loss) before income taxes
|
(26,393
|
)
|
|
56,789
|
|
|
(83,182
|
)
|
|
(146.5
|
)%
|
|||
Income tax benefit
|
2,794
|
|
|
(1,219
|
)
|
|
4,013
|
|
|
329.2
|
%
|
|||
Net income (loss)
|
(23,599
|
)
|
|
55,570
|
|
|
(79,169
|
)
|
|
(142.5
|
)%
|
|||
Private perpetual preferred unit distributions
|
(3,147
|
)
|
|
(702
|
)
|
|
(2,445
|
)
|
|
(348.3
|
)%
|
|||
Net income (loss) attributable to common unitholders
|
$
|
(26,746
|
)
|
|
$
|
54,868
|
|
|
$
|
(81,614
|
)
|
|
(148.7
|
)%
|
Financial covenant
|
Required
|
September 30, 2020
|
In Compliance
|
|
Maximum total leverage
|
< 60%
|
33.2
|
%
|
Yes
|
Maximum secured debt
|
< 40%
|
10.2
|
%
|
Yes
|
Minimum fixed charge coverage
|
> 1.50x
|
2.8x
|
|
Yes
|
Minimum unencumbered interest coverage
|
> 1.75x
|
5.2x
|
|
Yes
|
Maximum unsecured leverage
|
< 60%
|
28.2
|
%
|
Yes
|
|
Nine Months Ended September 30,
|
||||||
Total New Leases, Expansions, and Renewals
|
2020
|
|
2019
|
||||
Number of leases signed(2)
|
64
|
|
|
106
|
|
||
Total square feet
|
459,033
|
|
|
903,010
|
|
||
Leasing commission costs(3)
|
$
|
4,356
|
|
|
$
|
16,071
|
|
Tenant improvement costs(3)
|
20,486
|
|
|
52,533
|
|
||
Total leasing commissions and tenant improvement costs(3)
|
$
|
24,842
|
|
|
$
|
68,604
|
|
Leasing commission costs per square foot(3)
|
$
|
9.49
|
|
|
$
|
17.80
|
|
Tenant improvement costs per square foot(3)
|
44.63
|
|
|
58.18
|
|
||
Total leasing commissions and tenant improvement costs per square foot(3)
|
$
|
54.12
|
|
|
$
|
75.98
|
|
|
Nine Months Ended September 30,
|
||||||
Total New Leases, Expansions, and Renewals
|
2020
|
|
2019
|
||||
Number of leases signed(2)
|
7
|
|
|
8
|
|
||
Total square feet
|
50,990
|
|
|
54,779
|
|
||
Leasing commission costs(3)
|
$
|
1,997
|
|
|
$
|
1,856
|
|
Tenant improvement costs(3)
|
7,345
|
|
|
2,214
|
|
||
Total leasing commissions and tenant improvement costs(3)
|
$
|
9,342
|
|
|
$
|
4,070
|
|
Leasing commission costs per square foot(3)
|
$
|
39.16
|
|
|
$
|
33.88
|
|
Tenant improvement costs per square foot(3)
|
144.04
|
|
|
40.42
|
|
||
Total leasing commissions and tenant improvement costs per square foot(3)
|
$
|
183.20
|
|
|
$
|
74.30
|
|
(1)
|
Excludes an aggregate of 506,453 and 511,755 rentable square feet of retail space in our Manhattan office properties in 2020 and 2019, respectively. Includes the Empire State Building broadcasting licenses and observatory operations.
|
(2)
|
Presents a renewed and expansion lease as one lease signed.
|
(3)
|
Presents all tenant improvement and leasing commission costs as if they were incurred in the period in which the lease was signed, which may be different than the period in which they were actually paid.
|
(4)
|
Includes an aggregate of 506,453 and 511,755 rentable square feet of retail space in our Manhattan office properties in 2020 and 2019, respectively. Excludes the Empire State Building broadcasting licenses and observatory operations.
|
|
Nine Months Ended September 30,
|
||||||
|
2020
|
|
2019
|
||||
Total Portfolio
|
|
|
|
||||
Capital expenditures (1)
|
$
|
35,618
|
|
|
$
|
99,266
|
|
(1)
|
Excludes tenant improvements and leasing commission costs.
|
Period
|
Total Number of Shares Purchased
|
|
Average Price Paid per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plan
|
|
Maximum Approximate Dollar Value Available for Future Purchase (in thousands)
|
||||||
July 2020
|
656,318
|
|
|
$
|
6.72
|
|
|
656,318
|
|
|
$
|
380,982
|
|
August 2020
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
380,982
|
|
September 2020
|
477,620
|
|
|
$
|
6.14
|
|
|
477,620
|
|
|
$
|
378,050
|
|
October 2020
|
1,952,013
|
|
|
$
|
6.21
|
|
|
1,952,013
|
|
|
$
|
365,934
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
(unaudited)
|
|
(unaudited)
|
||||||||||||
Net income (loss)
|
$
|
(12,269
|
)
|
|
$
|
26,784
|
|
|
$
|
(23,599
|
)
|
|
$
|
55,570
|
|
Add:
|
|
|
|
|
|
|
|
||||||||
General and administrative expenses
|
14,517
|
|
|
14,421
|
|
|
48,617
|
|
|
44,445
|
|
||||
Depreciation and amortization
|
44,733
|
|
|
44,260
|
|
|
143,609
|
|
|
135,179
|
|
||||
Interest expense
|
23,360
|
|
|
19,426
|
|
|
66,992
|
|
|
60,712
|
|
||||
Income tax expense (benefit)
|
38
|
|
|
1,338
|
|
|
(2,794
|
)
|
|
1,219
|
|
||||
Impairment charges
|
1,259
|
|
|
—
|
|
|
5,360
|
|
|
—
|
|
||||
IPO litigation expense
|
1,165
|
|
|
—
|
|
|
1,165
|
|
|
—
|
|
||||
Less:
|
|
|
|
|
|
|
|
||||||||
Third-party management and other fees
|
(283
|
)
|
|
(304
|
)
|
|
(930
|
)
|
|
(955
|
)
|
||||
Interest income
|
(366
|
)
|
|
(2,269
|
)
|
|
(2,529
|
)
|
|
(9,907
|
)
|
||||
Net operating income
|
$
|
72,154
|
|
|
$
|
103,656
|
|
|
$
|
235,891
|
|
|
$
|
286,263
|
|
Other Net Operating Income Data
|
|
|
|
|
|
|
|
||||||||
Straight-line rental revenue
|
$
|
395
|
|
|
$
|
5,174
|
|
|
$
|
5,878
|
|
|
$
|
13,781
|
|
Net increase in rental revenue from the amortization of above-and below-market lease assets and liabilities
|
$
|
679
|
|
|
$
|
1,682
|
|
|
$
|
2,953
|
|
|
$
|
5,781
|
|
Amortization of acquired below-market ground leases
|
$
|
1,957
|
|
|
$
|
1,957
|
|
|
$
|
5,873
|
|
|
$
|
5,783
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
(unaudited)
|
|
(unaudited)
|
||||||||||||
Net income (loss)
|
$
|
(12,269
|
)
|
|
$
|
26,784
|
|
|
$
|
(23,599
|
)
|
|
$
|
55,570
|
|
Private perpetual preferred unit distributions
|
(1,050
|
)
|
|
(234
|
)
|
|
(3,147
|
)
|
|
(702
|
)
|
||||
Real estate depreciation and amortization
|
43,029
|
|
|
43,303
|
|
|
138,555
|
|
|
132,217
|
|
||||
Impairment charges
|
1,259
|
|
|
—
|
|
|
5,360
|
|
|
—
|
|
||||
FFO attributable to common stockholders
|
30,969
|
|
|
69,853
|
|
|
117,169
|
|
|
187,085
|
|
||||
Amortization of below-market ground leases
|
1,957
|
|
|
1,957
|
|
|
5,873
|
|
|
5,873
|
|
||||
Modified FFO attributable to common stockholders
|
32,926
|
|
|
71,810
|
|
|
123,042
|
|
|
192,958
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Loss on early extinguishment of debt
|
—
|
|
|
—
|
|
|
86
|
|
|
—
|
|
||||
Severance expenses
|
805
|
|
|
—
|
|
|
3,813
|
|
|
—
|
|
||||
IPO litigation expense
|
1,165
|
|
|
—
|
|
|
1,165
|
|
|
—
|
|
||||
Core FFO attributable to common stockholders
|
$
|
34,896
|
|
|
$
|
71,810
|
|
|
$
|
128,106
|
|
|
$
|
192,958
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average Operating Partnership units
|
|
|
|
|
|
|
|
||||||||
Basic
|
280,940
|
|
|
298,151
|
|
|
285,640
|
|
|
298,117
|
|
||||
Diluted
|
280,940
|
|
|
298,151
|
|
|
285,640
|
|
|
298,117
|
|
•
|
prolonged reduction in business vitality which could impair our prospects for new and renewal leases, decrease demand for office and retail space, decrease rental rates, and/or increase lease terminations and vacancy rates, all with an adverse impact on the value or market price of our assets;
|
•
|
temporary or long-term reduction in demand for commercial office space based on new acceptance of employees’ remote work from home;
|
•
|
new obstacles to our plans to redevelop and reposition properties, or to execute any newly planned capital project, successfully or on the anticipated timeline or at the anticipated costs;
|
•
|
impairment of our ability to pay down, refinance, restructure or extend our indebtedness as it becomes due, to comply with covenants in existing credit agreements, to borrow additional funds in compliance with drawdown conditions of existing facilities, or to enter into new financings;
|
•
|
volatility and downward pressure on the market price of our Class A common stock and publicly traded partnership units of the Operating Partnership which would also reduce our access to capital and/or our equity currency for new acquisitions; and
|
•
|
reduction of our cash flows and our ability to pay dividends.
|
Period
|
Total Number of Shares Purchased
|
|
Average Price Paid per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plan
|
|
Maximum Approximate Dollar Value Available for Future Purchase (in thousands)
|
||||||
July 2020
|
656,318
|
|
|
$
|
6.72
|
|
|
656,318
|
|
|
$
|
380,982
|
|
August 2020
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
380,982
|
|
September 2020
|
477,620
|
|
|
$
|
6.14
|
|
|
477,620
|
|
|
$
|
378,050
|
|
October 2020
|
1,952,013
|
|
|
$
|
6.21
|
|
|
1,952,013
|
|
|
$
|
365,934
|
|
1 Year Empire State Realty OP Chart |
1 Month Empire State Realty OP Chart |
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