Empire State Realty Trust, Inc. Announces Dividend Suspension for Third and Fourth Quarters of 2020 and Provides Business Update - Seite 2

The Empire State Building Observatory 86th floor deck reopened on July 20th, and the 102nd floor reopened on August 24th. In the face of international, national, and local travel restrictions and quarantines, ESRT has seen steady, weekly increases in visitors. In the week concluded August 23rd, attendance was just under 4% of 2019 comparable period attendance; steady progress yet below the 5% projection for traffic in August set forth in the July investor deck. The Company’s fully expected return of attendance to pre COVID-19 levels is closely tied to national and international travel trends and these remain adversely impacted by COVID-19 developments.

As announced in its second quarter 2020 earnings call, ESRT has taken measures to reduce its cost structure, operating expenditures, capital expenditures, and G&A. Non-essential capital expenditures have been deferred, and headcount has been reduced through furloughs and reduction in force. The Company continues to explore additional cost reduction measures.

Paydown of Outstanding Line of Credit Balance

Amidst uncertainty about credit markets at the March 2020 onset of the COVID-19 lockdown, ESRT drew down $550 million on its revolving credit facility. The Company is now confident in the banking system’s ability to fund line drawdowns and has therefore decided to pay down in full its borrowings under its line as of September 1, 2020. This will save approximately $7.5 million of annual interest expense and leave the Company with $350 million in cash, $1.1 billion of undrawn capacity on its revolving credit facility, and no debt maturities until 2024.

Preferred Dividend

The Board of Directors has declared a dividend of $0.15 per unit for the third quarter of 2020, payable to holders of ESRO’s Series 2014 Private Perpetual Preferred Units, and a dividend of $0.175 per unit for the third quarter of 2020, payable to holders of ESRO’s Series 2019 Private Perpetual Preferred Units. The dividends will be payable in cash on September 30, 2020 to unitholders of record at the close of business on September 16, 2020.

About Empire State Realty Trust

Empire State Realty Trust, Inc. (NYSE: ESRT), a leading real estate investment trust (REIT), owns, manages, operates, acquires and repositions office and retail properties in Manhattan and the greater New York metropolitan area, including the Empire State Building, the world's most famous building. Headquartered in New York, New York, the Company's office and retail portfolio covers 10.1 million rentable square feet, as of June 30, 2020, consisting of 9.4 million rentable square feet in 14 office properties, including nine in Manhattan, three in Fairfield County, Connecticut and two in Westchester County, New York; and approximately 700,000 rentable square feet in the retail portfolio.