[Management View]
Empire State Realty Trust (ESRT) highlighted sequential progress in leasing, occupancy, and financial performance in Q3 2025, supported by ongoing operational execution and active capital allocation. Management cited a favorable leasing market in New York City, ongoing success in multifamily rent growth, and stable Observatory revenue streams. Leverage remains at conservative levels, and liquidity is further enhanced by a new $175 million private note issue. No material debt maturities until 2026. Direct investment into Manhattan multifamily and Williamsburg retail continues, while the company evaluates asset recycling and future share repurchases as key components of its strategy.

[Outlook]
Management reaffirmed year-end 2025 commercial occupancy guidance at 89% to 91%. The company continues to underwrite deals in New York City across office, retail, and multifamily sectors, supported by strong liquidity. The focus remains on driving sustainable cash flow through a high-quality, diversified New York City portfolio.

[Financial Performance]
Core FFO for 2025 was $0.23 per diluted share. Same-store property cash NOI increased 1.1% year over year, excluding lease termination fees and adjusted for $1.7 million in nonrecurring items. Manhattan office occupancy increased by 80 basis points sequentially to 90.3% in Q3 2025. Core FAD increased to $40.4 million in the third quarter from $11.9 million in the second quarter, mainly due to a reduction in capital expenditures.

[Q&A Highlights]
Question 1: Could you expand on the capital user side after the private placement in December? Are there specific acquisitions or potential transactions you're looking at? (Line breaks here)
Answer: We continue to underwrite deals in New York City across office, retail, and multifamily sectors. We are positioned with good liquidity to move quickly when the right deal arises. The market has seen transactions with mid-high single-digit cap rates, but specifics vary. We aim to be well-positioned to transact and are actively looking.

Question 2: Are you concerned about tenants exposed to changes in rent due to the mayoral election? (Line breaks here)
Answer: New York City remains a top market. We operate on policy, not politics, and adapt to any administration. The city attracts job-seeking graduates and remains a magnet for employers. We are positive about New York City's future, despite potential policy changes.

Question 3: How attractive is buying back stock at current trading levels? (Line breaks here)
Answer: Our share price is attractive, providing a great entry point. We have repurchased $300 million of shares and continue to consider future buybacks. We balance share repurchases with the need for liquidity to act on investment opportunities.

Question 4: Have you seen any change in trends with respect to expansion versus contraction of space at expiration? (Line breaks here)
Answer: We have seen over 3.1 million square feet of tenant expansions since our IPO. We continue to see growth and interest from tenants due to the quality of our portfolio. We do not see contraction trends and remain positive about future demand.

Question 5: Is there any update on Metro Center and other potential dispositions? (Line breaks here)
Answer: No additional update on Metro Center. We remain flexible and open to capital recycling opportunities. We evaluate disposing of assets to redeploy proceeds into higher-value opportunities, consistent with our strategy.

Question 6: Are there any trends in tenant demand across different industries? (Line breaks here)
Answer: Our portfolio appeals to a diverse range of sectors, including TAMI, consumer products, FIRE, and professional services. Tenants are looking to upgrade to better quality spaces, and we continue to see strong demand.

Question 7: What are your thoughts on potential rent growth in 2026 and 2027? (Line breaks here)
Answer: We have seen significant rent growth over the past five years and expect continued increases due to limited competitive availability. Our portfolio remains top-tier, and we anticipate further rent spikes as demand outpaces supply.

Question 8: Can you provide a breakdown of the 150,000 square feet of leases in negotiation? (Line breaks here)
Answer: The 150,000 square feet includes a mix of office and retail leases, with a focus on creating large contiguous blocks to meet market demand. Approximately 20% of our Manhattan office vacancy is held off-market for this purpose.

Question 9: What are the current trends in retail and multifamily rent growth? (Line breaks here)
Answer: We have seen strong demand and rent growth in Williamsburg retail, with recent leases exceeding expectations. Multifamily net effective rent grew 9.3% year over year, with occupancy and released units contributing to revenue growth.

[Sentiment Analysis]
The tone of the analysts was inquisitive and focused on understanding the company's strategic direction and market positioning. Management's responses were confident and highlighted strong operational performance and strategic flexibility.

[Quarterly Comparison]
| Metric | Q3 2025 | Q2 2025 | YoY Change |
|---------------------------------|---------------|---------------|--------------|
| Core FFO per diluted share | $0.23 | N/A | N/A |
| Same-store property cash NOI | +1.1% | N/A | N/A |
| Manhattan office occupancy | 90.3% | 89.5% | +80 bps |
| Core FAD | $40.4 million | $11.9 million | N/A |

[Risks and Concerns]
- Potential policy changes due to the mayoral election in New York City.
- Market fluctuations affecting cap rates and transaction opportunities.
- Continued impact of reduced international visitation on Observatory revenue.

[Final Takeaway]
Empire State Realty Trust demonstrated strong leasing momentum and strategic capital allocation in Q3 2025. The company remains well-positioned with a high-quality, diversified portfolio and strong liquidity. Management's focus on sustainable cash flow, tenant demand, and strategic investments supports a positive outlook for future growth. Investors should monitor potential policy changes and market conditions that could impact the company's performance.