Empire State Realty Trust : ESRT July 2020 Investor Presentation

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($ millions)

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							Total Billings Collected				Office	Retail
							April		86%	84%
							May			85%	73%
							June			85%	69%
							July			93%	75%

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Highway

Metro-North Railroad

Metro-North Train Stop

684

Norwalk

95

Stamford

White Plains

287

Harrison

~30 miles to

Midtown Manhattan

10 Bank Street

500 Mamaroneck Avenue

First Stamford Place

Metro Center

383 Main Avenue

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9/11

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											Three Months Ended								Year Ended
Reconciliation of Net Income to NOI		June 30,			March 31,	December 31,	September 30,			June 30,			December 31,
and Cash NOI		2020					2020				2019				2019						2019						2019
Net Income	$	(19,618)			$	8,288		$	28,720		$	26,784				$	18,930			$	84,290
Add:
General and administrative expenses		18,149					15,951				16,618				14,421						15,998						61,063
Depreciation and amortization		52,783					46,093				46,409				44,260						44,821						181,588
Interest expense		23,928					19,704				18,534				19,426						20,597						79,246
Income tax expense (benefit)		(2,450)					(382)				1,210				1,338						611						2,429
Impairment Charges		4,101					-				-				-						-						-
Less:
Third-party management and other fees		(301)					(346)				(299)				(304)						(331)						(1,254)
Interest Income		(1,526)					(637)				(1,352)				(2,269)						(3,899)						(11,259)
Net operating income		75,066					88,671				109,840				103,656						96,727						396,103
Straight-line rent		2,710					(8,193)				(6,276)				(5,174)						(3,203)						(20,057)
Above/below-market rent revenue amortization		(1,366)					(908)				(1,530)				(1,682)						(1,745)						(7,311)
Below-market ground lease amortization		1,958					1,958				1,958				1,957						1,958						7,831
Total cash net operating income		78,368					81,528				103,992				98,757						93,737						376,566

									Three Months Ended
			Twelve
			Months to			June 30,			March 31,		December 31,		September 30,
			Date			2020			2020			2019			2019
Rental revenue	$	512,283	$	122,374	$	130,577	$	130,234	$	129,098
Tenant expense reimbursement			75,755			15,625			17,536			21,467			21,127
Deduct:
Straight-line rental revenues			(16,933)			2,710			(8,193)			(6,276)			(5,174)
Above/below-market rent revenue amortization			(5,486)			(1,366)			(908)			(1,530)			(1,682)
Total cash revenues		$	565,619		$	139,343		$	139,012		$	143,895		$	143,369

					Three Months Ended
		June 30,			March 31,		December 31,	September 30,			June 30,
		2020			2020			2019				2019			2019
Net income (loss)	$	(19,618)	$	8,288	$	28,720			$	26,784	$	18,930
Interest expense		23,928			19,618			18,534				19,426			20,597
Income tax expense (benefit)		(2,450)			(382)			1,210				1,338			611
Depreciation and amortization		52,783			46,093			46,409				44,260			44,821
EBITDA		54,643			73,617			94,873				91,808			84,959
Impairment charges		4,101			-			-				-			-
Adjusted EBITDA	$	58,744	$	73,617	$	94,873			$	91,808	$	84,959

This presentation includes "forward looking statements" within the meaning of the federal securities laws. Forward-looking statements may be identified by the use of words such as "believes," "expects," "may," "will," "should," "seeks," "approximately," "intends," "plans," "estimates," "contemplates," "aims," "continues," "would" or "anticipates" or the negative of these words and phrases or similar words or phrases.

The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: (i) economic, political and social impact of, and uncertainty relating to, the COVID-19 pandemic, including (a) the effectiveness or lack of effectiveness of governmental relief in providing assistance to businesses that have suffered significant declines in revenues as a result of mandatory business shut-downs,"shelter-in-place" or "stay-at-home" orders and social distancing practices, as well as individuals adversely impacted by the COVID-19 pandemic, (b) the duration of any such orders or other formal recommendations for social distancing and the speed and extent to which revenues of the Company's tenants, particularly retail, and the Observatory recover following the lifting of any such orders or

recommendations, (c) the potential impact of any such events on the obligations of the Company's tenants to make rent and other payments or honor other commitments, including

such tenants' ability to make rent following the termination of temporary governmental assistance and benefits programs, (d) government moratoriums and/or limits (including temporary closure of certain court systems) which directly or indirectly abridge the enforcement of lease obligations and related guarantees, (e) the potential impact on the Company's human capital management, including restrained productivity associated with work-from-home and risks associated with employees returning to the office, (f) international and national disruption of travel and tourism with a resulting decline in Observatory visitors, and (g) macroeconomic conditions, such as a disruption of, or lack of access to, the capital markets, and general volatility adversely impacting the market price of the Company's Class A common stock and publicly-traded partnership units of the Operating Partnership; (ii) resolution of legal proceedings involving the Company; (iii) reduced demand for office or retail space, including as a result of the COVID-19 pandemic;

1. changes in our business strategy; (v) changes in technology and market competition that affect utilization of our broadcast or other facilities; (vi) changes in domestic or international tourism, including due to health crises such as the COVID-19 pandemic, geopolitical events and/or currency exchange rates, which may cause a decline in Observatory visitors; (vii) defaults on, early terminations of, or non-renewal of, leases by tenants; (viii) increases in the Company's borrowing costs as a result of changes in interest rates and other factors, including the potential phasing out of LIBOR after 2021; (ix) declining real estate valuations and impairment charges; (x) termination or expiration of our ground leases; (xi) our ability to pay down, refinance, restructure or extend our indebtedness as it becomes due and potential limitations on our ability to borrow additional funds in compliance with drawdown conditions and financial covenants; (xii) decreased rental rates or increased vacancy rates; (xiii) our failure to redevelop and reposition properties, or to execute any newly planned capital project successfully or on the anticipated timeline or at the anticipated costs; (xiv) difficulties in identifying properties to acquire and completing acquisitions; (xv) risks related to our development projects (including our Metro Tower development site) and capital projects, including the cost of construction delays and cost overruns; (xvi) impact of changes in governmental regulations, tax laws and rates and similar matters; (xvii) our failure to qualify as a REIT; and (xviii) environmental uncertainties and risks related to adverse weather conditions, rising sea levels and natural disasters.

For a further discussion of these and other factors that could impact the Company's future results, performance or transactions, see the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2019 and the Company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020, and other risks described in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission.

While forward-looking statements reflect the Company's good faith beliefs, they are not guarantees of future performance. The Company disclaims any obligation to update or revise publicly any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events, or other changes after the date of this press release, except as required by applicable law. Prospective investors should not place undue reliance on any forward-looking statements, which are based only on information currently available to the Company (or to third parties making the forward-looking statements).