Empire State Realty Trust, Inc. Announces Dividend Suspension for Third and Fourth Quarters of 2020 and Provides Business Update

Empire State Realty Trust, Inc. (NYSE: ESRT) (the “Company” or “ESRT”), a leading real estate investment trust with office and retail properties in Manhattan and the greater New York metropolitan area, today announced its decision to suspend its third and fourth quarter dividends to holders of the Company’s Class A common stock and Class B common stock and to holders of Empire State Realty OP, L.P.’s (“ESRO”) Series ES, Series 250 and Series 60 operating partnership units (NYSE Arca: ESBA, FISK and OGCP, respectively) and Series PR operating partnership units.

ESRT expects to have no taxable income in 2020, and therefore no requirement to pay any dividend on its common stock in either the third or fourth quarter of 2020. The Company and its Board believe that payment of a dividend is currently not the highest and best use of its balance sheet.

“Our focus is to preserve and enhance shareholder value. The decision not to pay a dividend in the last two quarters of 2020 maintains the greatest balance sheet flexibility and is the correct action to take at this time,” said ESRT’s Chairman, President, and CEO, Anthony E. Malkin. He added, “I thank the entire ESRT team who continue to perform at a very high level and work together as we plot our course forward.”

Business Update

New York City remains the destination of choice for top talent and career building. At present, it continues to confront a pre-cure/treatment pandemic environment that is dynamic and subject to change. Its midtown real estate markets are challenged by a slow return-to-office that yields a slow-to-improve environment for retail tenants who therefore have issues with ability and/or volition to pay rent. Office and retail space leasing trends are nascent and undefined.

The Company collected 93% of billings of rents and all other charges in July, with 96% for office tenants and 78% for retail tenants. Rents and all other charges in August include the billing of real estate taxes, which are typically processed by tenants more slowly than base rent charges, and total collections as a percentage of the amount billed are therefore lower than July. As of August 24th, the Company collected 86% of total August billings, with 89% for office tenants and 72% for retail tenants. August base rent collections totaled 94% through August 24th, with 95% for office tenants and 84% for retail tenants.