PERFORMANCE & PERSPECTIVE. Disclaimer

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1 November

2 Disclaimer We make forward-looking statements in this presentation within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You should not rely on them as predictions of future events. For these statements, we claim the protections of the safe harbor for forward-looking statements contained in such Sections. You can identify forward-looking statements by the use of forward-looking terminology such as believes, expects, may, will, should, seeks, approximately, intends, plans, estimates, contemplates, aims, continues, would or anticipates or similar words or phrases in the positive or negative. For example, statements regarding potential growth in our portfolio, future results from operations, prospective acquisitions, projected leasing, and anticipated market conditions are forward-looking statements. Forward-looking statements involve numerous risks and uncertainties, and you should not rely on them as predictions of future events. They depend on assumptions, data or methods which may be incorrect or imprecise, and we may not be able to realize them. PERFORMANCE & arbitration involving the company; reduced demand for office or retail space; general volatility of the capital and credit markets and the market price of our Class A 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: changes in our industry, the real estate markets, either nationally or in Manhattan or the greater New York metropolitan area; resolution of the litigations and common stock and our publicly-traded operating partnership units; changes in our business strategy; changes in technology and market competition, which affect utilization of our broadcast or other facilities; changes in domestic or international tourism, including geopolitical events and currency exchange rates; defaults on, early terminations of, or non-renewal of leases by tenants; bankruptcy or insolvency of amajor tenant or asignificant number of smaller tenants; fluctuations in interest rates; increased operating costs; declining real estate valuations and impairment charges; termination or expiration of our ground leases; availability, terms and deployment of capital; our failure to obtain necessary outside financing, including our unsecured revolving credit facility; our leverage; decreased rental rates or increased vacancy PERSPECTIVE rates; our failure to generate sufficient cash flows to service our outstanding indebtedness; our failure to redevelop and reposition properties successfully or on the anticipated timeline or at the anticipated costs; difficulties in identifying properties to acquire and completing acquisitions; risks of real estate development (including our Metro Tower development site), including the cost of construction delays and cost overruns; our failure to operate properties and operations successfully; our ability to manage our growth effectively; our ability to make distributions to our stockholders in the future; impact of changes in governmental regulations, tax law and rates and similar matters; our failure to continue to qualify as areal estate investment trust, or REIT; afuture terrorist event in the U.S.; environmental uncertainties and risks related to adverse weather conditions and natural disasters; lack, or insufficient amounts, of insurance; availability of, and our ability to attract and retain, qualified personnel; conflicts of interest affecting any of our senior management team; our understanding of our competition; changes in real estate and zoning laws and increases in real property tax rates; our ability to comply with the laws, rules and regulations applicable to companies and, in particular, public companies. While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. You should not place undue reliance on any forwardlooking statements, which are based only on information currently available to us (or to third parties making the forward-looking statements). We disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions, new information, data or methods, future events or other changes after the date of this presentation, except as required by applicable law. For afurther discussion of these and other factors that could impact our future results, performance or transactions, see the section entitled Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2014, and other risks described in documents we subsequently file from time to time with the Securities and Exchange Commission. 2

3 Investor Highlights Pure-play Manhattan and greater New York metropolitan area Embedded, de-risked growth Redevelopment of irreplaceable properties Best-in-Class balance sheet Experienced and proven management team 3

4 Management Team EXPERIENCED AND COMMITTED Anthony E. Malkin Chairman & Chief Executive Officer 27 years with ESRT 27 years in industry Bachelor s degree from Harvard College John B. Kessler President & Chief Operating Officer 1 year with ESRT 26 years in industry Bachelor s degree from Harvard College and M.B.A. from the Booth School at the University of Chicago Thomas P. Durels Executive Vice President & Director of Leasing and Operations 25 years with ESRT 32 years in industry Bachelor s degree from Lehigh University David A. Karp Executive Vice President, Chief Financial Officer & Treasurer 4 years with ESRT 33 years in industry Bachelor s degree from University of California, Berkeley and M.B.A. from the Wharton School at the University of Pennsylvania Thomas N. Keltner, Jr. Executive Vice President, General Counsel & Secretary 37 years with ESRT 37 years in industry Bachelor s degree from Harvard College and J.D. from Columbia Law School Majority of senior management team has worked together for approximately 25 years Senior management team with an average of approximately 31 years of experience in real estate Extensive experience in Greater New York area real estate, through many economic cycles Strong management team throughout the company Senior management team owns a significant amount of stock The Malkin Group did not sell any shares at or after IPO 4

5 Internal & External Opportunities ADDITIONAL YEARS OF EMBEDDED, DE-RISKED GROWTH TO COME Internal Growth Redevelopment External Growth Irreplaceable assets in prime locations with additional years of embedded, de-risked growth to come Consolidate, redevelop and lease floors, and outperform the market in any cycle Patient, diligent, creative, and conscious of cycles in pursuit of growth 5

6 Delivered on Promises YTD million SF of leasing 53.1% spreads achieved on new Manhattan office leases 230,000 SF of redevelopment delivered Signed larger leases for longer term with better credit limits thousand Company data and filings as of September 30,

7 Portfolio Overview PURE-PLAY MANHATTAN AND GREATER NEW YORK METROPOLITAN AREA 10.1 Million Total Rentable Square Feet 9.4 Million Rentable Square Feet of Office Space GNYM Office 18.5% GNYM Office 20% Retail 7.2% Manhattan Office 74.3% Manhattan Office 80% Company data and filings as of September 30,

8 Manhattan Portfolio FOCUSED IN KEY MIDTOWN SUBMARKETS Central Park 8

9 Tenant Lease Expirations MANHATTAN OFFICE PORTFOLIO 54.0% 11.6% 3.0% 5.0% 6.2% 7.1% 7.4% 5.7% Available SLNC Thereafter Company data and filings as of September 30,

10 De-risked Growth in Current Portfolio SIGNIFICANT EMBEDDED GROWTH POTENTIAL Signed leases not commenced $30 M Redevelopment opportunity $24 M Growth Retail opportunity $16 M Lease up of vacant space $30 M Amounts reflect management s estimates of additional revenues from four drivers as of September 30, 2015 to be realized over time. Company data and filings as of September 30,

11 Signed Leases Not Commenced Tenant SF 9/30/2015 Escalated Annual Rent New Annual Rent Commencement Date Incremental Annual Revenue HSBC 2,864 $0.00 M $1.07 M Oct $1.07 M HNTB 78, M 4.47 M Oct M BNP 13, M 0.88 M Oct M Shake Shack 1, M 0.73 M Nov M LinkedIn 125, M 6.62 M Jan M Foot Locker 34, M 6.21 M May M Sephora 11, M M Aug M Macys 89, M 4.46 M Sept M Other SLNC 65, M 3.64 M Oct May M Total 422,401 $8.36 M $38.48 M $30.12 M Total Contracted Annual Growth $30.12 M Company data and filings as of September 30,

12 Embedded Growth on Re-Leasing WITHIN MANHATTAN OFFICE PORTFOLIO Lease-up of ESRT s available space Strong re-leasing spreads ² Manhattan office submarket avg. occupancy¹ All leases YTD 2015 New leases YTD % 94.6% 89.2% 89.2% $ $ % 72.3% 74.9% 86.3% $ $ Managing rent roll to execute repositioning strategy ESB 112 W. 34th 250 W. 57th OGCP Prev. Escalated Rent New Starting Base Rent PSF Prev. Escalated Rent New Starting Base Rent PSF 3 3 PSF PSF Source: Market data per Cushman & Wakefield as of September 30, Company data and filings as of September 30, %, 89.2% and 89.2% occupancies represent the overall occupancy of the Penn Station, Grand Central and West Side submarkets, respectively, as of September 30, Based on Manhattan office portfolio. 3 Previous escalated rent PSF is adjusted for space remeasurement. 12

13 Superior Leasing Spreads COMPARED TO PEER GROUP 45.0% 40.0% 41.0% 35.0% 30.0% 25.0% 20.0% 15.0% 16.3% 10.0% 5.0% 0.0% 2015 Q3 Manhattan office leasing spreads ESRT Peer Group Company data and filings as of September 30, Peer group includes SL Green, Vornado Realty Trust and Paramount Group. 13

14 Manhattan Office Mark to Market CURRENT 2015 MARKET RENT VS. CURRENT FULLY ESCALATED RENT Current fully escalated rent PSF 1 $ 40 $ 45 $ 47 $ 51 $ 46 Leased square feet expiring 2 372, , , , ,764 Weighted average starting rent PSF 3 $ 55 $ 57 $ 57 $ 57 $ 57 Embedded growth 37.5% 26.7% 21.3% 11.8% 23.9% 1 Fully escalated rents are as of September 30, 2015, exclude SLNC and are adjusted for space re-measurement. 2 Excludes SLNC. 3 The above does not give consideration for downtime to vacate, redevelop and lease. Weighted average starting rent is management s estimate for new, renewal and below market short term rentals for cash flow purposes and includes both office and storage. Starting rents reflect rates as of 2015 without ascribing any future growth. 14

15 Vacant Office Space MANHATTAN OFFICE PORTFOLIO Current vacancy Weighted average starting rent 870,000 SF $60 PSF Whitebox / Demo 270,000 31% Prebuilt 213,000 24% PIO 37,000 4% Broadcasting 8,000 SF 1% Storage 44,000 5% Off Market 85,000 10% Undeveloped 213,000 25% Weighted average starting rent is management s estimate for new leases. Excludes SLNC. PIO represents Prepared for Immediate Occupancy. 15

16 Vacant Office Space EMPIRE STATE BUILDING Current vacancy Weighted average starting rent 240,000 SF $64 PSF Prebuilt 74,000 31% Whitebox / Demo 35,000 15% Broadcasting 8,000 SF 3% Storage 30,000 12% Off Market 24,000 10% Undeveloped 69,000 29% Weighted average starting rent is management s estimate for new leases. Excludes SLNC. 16

17 Redevelopment Opportunity EMBEDDED, DE-RISKED GROWTH Tenant space to be redeveloped Empire State Building Balance of Manhattan office portfolio Total 480,000 SF 1,450,000 SF 1,930,000 SF 600, ,000 Probable Renovations of Undeveloped Space through ,000 SF 400, , ,000 SF 210,000 SF 200, , ,000 SF 130,000 SF 90,000 SF (SF) Based upon current views and assumptions, which are subject to change. Company data and filings as of September 30, Occupied Office Retail Vacant Office 17

18 Defining the Retail Opportunity CREATING VALUE AT STREET LEVEL 724,000 SF of total retail space 92.7% occupied 474.1% positive spreads on 70,940 SF of leasing in high traffic locations on dynamic retail streets Company data and filings as of September 30,

19 Retail Mark to Market CURRENT 2015 MARKET RENT VS. CURRENT FULLY ESCALATED RENT Vacant Current fully escalated rent PSF 1 N/A $88 $149 $66 $133 Leased square feet expiring 2 39,139 95,775 20,895 12,677 23,236 Weighted average starting rent PSF 3 $105 $188 $138 $114 $214 Embedded growth N/A 113.6% -7.4% 72.7% 60.9% 1 Fully escalated rents are as of September 30, 2015, exclude SLNC and are adjusted for space re-measurement. 2 Excludes SLNC. 3 The above does not give consideration for downtime to vacate, redevelop and lease. Weighted average starting rent is management s estimate for new, renewal and below market short term rentals for cash flow purposes. Starting rents reflect rates as of 2015 without ascribing any future growth. 19

20 Varied Tenant Base DIVERSIFIED BY INDUSTRY Non-Profit 2.9% Media and Advertising 3.4% Other 19.1% Consumer Goods 23.3% Technology 3.9% Legal Services 3.9% Retail 14.4% Professional Services 11.0% Finance, Insurance, Real Estate 18.1% Industry diversification by annualized fully escalated rent. Company data and filings as of September 30,

21 Creating Full Floor Availabilities ADJACENT SPACES CONSOLIDATED OVER TIME Floors originally had 42 tenants Adjacent tenants are grouped by lease expiration dates 2014 Spaces are vacated as expired leases are not renewed Floors leased to only 2 tenants 21

22 Redevelopment Capital Expenditures NEARING SUBSTANTIAL COMPLETION OF COMMON AREA RENOVATIONS Addl. Spend on Manhattan Office ( ) $45-75 million 9% Spent to Date $629 million 91% Company data and filings as of September 30,

23 Tenant Space Redevelopment TYPICAL COSTS PER SQUARE FOOT Type Total base building Market rate tenant allowance Commission Total costs for redevelopment Cost $35-65 PSF $60-70 PSF $24-28 PSF $ PSF All tenant improvement and commission ranges are based on typical 10-year lease. 23

24 Pre-built TYPICAL COSTS PER SQUARE FOOT Type Totalbase building Turn-key buildout Commission Total costs for redevelopment Cost $35-65 PSF $ PSF $17-20 PSF $ PSF All tenant improvement and commission ranges are based on typical 5-year lease. 24

25 Sustainability Measures Matrix Whole Building Energy Retrofit Analysis (Replicate ESB Model) ESB One Grand Central Place 1400 Broadway 112 W 34th St 250 W 57th St 1333 Broadway 1350 Broadway x x x x x x x Whole Building Energy Retrofit Implementation x x x x x x x Low-e window retrofit x x x x x x x High Performance Tenant Installation Required per Lease x x x x x x x Submetering of All New Tenant Spaces x x x x x x x Utilities Billed by Submetering (as installed) x x x x x x x Building Management System (BMS) Status (i) BMS in place x x x (ii) No BMS in place x (hybrid/package HVAC) x (no central HVAC) (iii) Partial BMS in place x (no central HVAC) x (no central HVAC) Energy Star Certification x x x x Waste Management/Recycling (i) Construction Debris x x x x x x x (ii) Tenant Waste x x x x x x x (iii) Separate Electronic Recycling x x x x x x x (iv) Single Stream Recycling x x x x x x x Green Cleaning Products and Practices x x x x x x x Green Pest Management Products and Practices x x x x x x x Demand Response/Peak Load Shaving x x x x x x x Sustainability Committee x x x x x x x Annual & Long Term Sustainability Targets x x x x x x x Leadership & Sharing x x x x x x 25 x

26 Sustainability Measures Matrix Whole Building Energy Retrofit Analysis (Replicate ESB Model) 1359 Broadway 501 7th Ave First Stamford Place Merritview 10 Bank St 500 Mamoroneck x x x x x x x Metro Center Whole Building Energy Retrofit Implementation x x underway pending underway underway pending Low-e window retrofit x x High Performance Tenant Installation Required per Lease x x x x x x x Submetering of All New Tenant Spaces x x Utilities Billed by Submetering (as installed) x x x x x x x Building Management System (BMS) Status (i) BMS in place x x x x x (ii) No BMS in place (iii) Partial BMS in place x (no central HVAC) x (no central HVAC) Energy Star Certification x x x x Waste Management/Recycling (i) Construction Debris x x x x x x x (ii) Tenant Waste x x x x x x x (iii) Separate Electronic Recycling x x x x x x x (iv) Single Stream Recycling x x x x x x x Green Cleaning Products and Practices x x x x x x x Green Pest Management Products and Practices x x x x x x x Demand Response/Peak Load Shaving x x x x x x x Sustainability Committee x x x x x x x Annual & Long Term Sustainability Targets x x x x x x x Leadership & Sharing x x x x x x 26 x

27 The Empire State Building CREATING VALUE THROUGH SUSTAINABILITY Skanska energy savings of 57% Coty saves $1 million over lease term Utility costs represent the third largest component of tenant expenses after salaries and rent 16 Annual energy savings (kbtu) Retrofit of chiller plant Largest cutting edge wireless BMS in the world Demand control ventilation 6,514 insulated reflective radiative barriers 6,514 retrofitted windows Tenant energy mgmt. systems VAV air handling units Tenant day lighting system Annual savings of $4.4 M 3.1 year payback Energy Star 83 Quantifiable transparent results Visit 0 Base Building Measures Tenant Space Measures 27

28 Greater NY Metropolitan Portfolio MANHATTAN QUALITY ASSETS AND TENANTS Best assets located near major transportation hubs 93.6% occupied 94.7 % leased Full amenities Low capital expenditure requirements Captures Manhattan-based tenants that relocate or open satellite offices 28

29 Greater NY Metropolitan Portfolio OVERVIEW Highway Metro-North Railroad Metro-North Train Stop 684 Westport Main St Main St 13% of YTD 2015 NOI 18% of total SF 95 Norwalk 93.6% occupied 287 Stamford 94.7% leased White Plains Harrison ~30 miles to Midtown Manhattan First Stamford Place Metro Center 383 Main Avenue Office Standalone Retail 10 Bank Street 500 Mamaroneck Avenue Company data and filings as of September 30,

30 Tenant Lease Expirations GREATER NY METROPOLITAN PORTFOLIO Add 52.3% 14.8% 13.4% 5.3% 1.1% 1.1% 3.3% 8.7% Available SLNC Thereafter Company data and filings as of September 30,

31 Observatory Performance THROUGH CYCLES AND NEW ATTRACTIONS Positive tourism trends to New York City (millions) CAGR 3.7% Source: NYC & Company. Domestic Visitors International Visitors Observatory annual revenue (millions) CAGR 12.2% 9/11 $25.0 $29.6 $33.4 Top of the Rock Reopens 2.2 Million Visitors (estimated 2014) $40.0 $50.1 $56.3 $62.9 Financial crisis hits $72.2 $71.6 9/11 Memorial Opens 5 Million Visitors (2013) $78.9 $80.6 $91.9 9/11 Museum Opens 3 Million Visitors (annualized 2014) $101.8 $111.5 One World Observatory Opens $83.4 $ YTD 2014 YTD 2015 Company Data and filings as of September 30,

32 Observatory Ticket Mix ACTIVELY MANAGE TICKET MIX TO MAXIMIZE MARGINS Direct sales at full price is largest source Pricing Adult Senior (62+) Child (6-12) Main Deck Only (86th Floor) $32.00 $29.00 $26.00 Main Deck Only (86th Floor) Express $65.00 $65.00 $65.00 Main Deck + Top Deck (86th & 102nd Floors) Main Deck + Top Deck Express (86th & 102nd Floors - No Waiting) $52.00 $49.00 $46.00 $85.00 $85.00 $

33 Who Visits the Observatory? IT S NOT ALL FOREIGNERS, GRANDPARENTS AND PARENTS WITH CHILDREN International vs. Domestic: 59% International, 41% Domestic Age Group: Domestic 41% 54% years old Male vs. Female: 56% Female, 44% Male International 59% Top 6 foreign countries: England/ Scotland/ Wales Canada France Australia Germany Brazil Data from ESRT customer polling. 33

34 Midtown Day vs. Downtown Day TWO SEPARATE DAYS Midtown Day Walking Time 1. Macy s / Herald Square 6 minutes 2. Bryant Park 11 minutes 3. Madison Square Garden 8 minutes 4. Radio City Music Hall / Rockefeller Center 16 minutes Downtown Day 1. 9/11 Memorial 2. 9/11 Museum 3. Statue of Liberty Cruise 4. One World Trade Center 5. Shopping 5. Madison Square Park / Eataly 7 minutes 6. Theatre district 19 minutes 7. Times Square Restaurants / Retail / Clubs 14 minutes th Street Shopping Tourists treat midtown and downtown as separate days Midtown s day starts earliest and ends latest given proximity to hotels, restaurants, nightlife Fixed costs for tourists are hotel rooms and food Midtown is the greatest bargain, fitting the most in one NYC day 34

35 The Rockettes Spring Spectacular MARCH million Facebook fans, 27,400+ Twitter followers and 41,000 Instagram followers AmNY Four full page ads with ESB logo (Circulation: 335,900+, total 1,343,600) New York Spring Spectacular City Week announcement (Circulation: 622,202) Prize mention on website (400,000 estimated impressions) The Rockettes Spring Spectacular was co-branded with ESB through set inclusion, Fifth Avenue window displays and ESB Lighting for opening night, March 26,

36 Ford Mustang 50 th Anniversary APRIL million MEDIA IMPRESSIONS $31.7M AD VALUE CNN (16.2 million followers) BBC World (9.15 million followers) Huffington Post (5.4 million followers) Associated Press (4.84 million followers) La Patilla, Venezuelan news outlet (4.63 million followers) El Pais, Spanish news outlet (4 million followers) Ford Mustang activation gave ESB five times the daily mentions during the display days, with Ford s 3 million Facebook fans, 681,000+ Twitter followers and 363,000+ Instagram followers. 36

37 Financial Strategy Overview STRONG AND FLEXIBLE CAPITAL STRUCTURE SUPPORTS NUMEROUS FINANCING OPTIONS Extending and laddering debt maturities Access to a variety of forms of capital FINANCIAL STRATEGY Low leverage with significant capacity 37

38 Fortress Balance Sheet CONTINUOUS IMPROVEMENT AND MAXIMUM FLEXIBILITY 6.0 Total Debt to EBITDA 1 5.9X 5.8 PEERS X Total Debt / EBITDA 5.1x 7.2x X Total Debt / Enterprise Value 26% 40% based on fourth quarter EBITDA annualized, 2014 and 2015 based on trailing 12 months EBITDA. Company data and filings as of September 30, Peer group includes Boston Properties, SL Green and Vornado Realty Trust. 38

39 Unencumbering the Portfolio ENHANCING CAPITAL FLEXIBILITY Repaid $580 million in mortgage loans, adding approximately 5.9 million square feet to the unencumbered pool since IPO 100% 50% 0% At IPO 99% <1% Portfolio SF Encumbered Unencumbered Repaid $580 million, including mortgage loans securing: Empire State Building 250 W. 57 th St. 500 Mamaroneck th Avenue Main Street 1359 Broadway September % 59% 60% 41% 40% 20% 0% Portfolio SF Encumbered Unencumbered One Grand Central Place 39

40 Debt Maturity WEIGHTED AVERAGE MATURITY INCREASED FROM 3.1 YEARS AT IPO TO 5.7 YEARS (millions) $450 $400 $350 $381 $356 $403 $428 $300 $262 $270 $265 $250 $200 $193 $150 $100 $88 $92 $50 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $ At IPO September

41 Well Capitalized Balance Sheet SUPPORTIVE OF FUTURE GROWTH Net debt / enterprise value ~26% Net debt / EBITDA ~5.0x Interest coverage ~5.4x Attractive in place mortgage debt Weighted average interest rate of 4.1% Weighted average debt maturity of 5.7 years Low Leverage Private Perpetual Preferred $27 mm <1% Mortgage Debt $755 mm 12% Capital Structure 1 Exchangeable Senior Unsecured Notes $250 mm 4% Senior Unsecured Notes $350 mm 6% Senior Unsecured Term Loan $265 mm 4% $800mm Credit Facility 2 $20 mm <1% Liquidity $20 million drawn on $800 million unsecured credit facility with accordion feature allowing for maximum aggregate principal balance of $1.25 billion Untapped debt capacity embedded in many low-levered assets Well-laddered and long-dated debt maturities Equity $4,557 mm 74% 1 Based on stock price of $17.03 as of September 30, 2015 and million fully diluted shares outstanding. Net debt as of September 30, 2015 of $1.58 billion. Mortgage debt includes a$16.6 million premium assumed for 1350 Broadway,1333 Broadway, 112 West 34 th Stand 1400 Broadway. 2 Credit Facilityincludes $800mm Revolving Credit Facility($20 million outstanding) due in January 2019 (with two six month extension options) 41

42 Superior Returns from Redevelopment AN ILLUSTRATION OF THE RETURNS ON INVESTMENTS White Box Pre-Built Low High Low High INVESTMENT PER SQUARE FOOT Common area redevelopment $23 $38 $23 $38 Tenant space: Base building $35 $65 $35 $65 Tenant allowance / improvement $60 $70 $115 $124 Leasing commission $24 $28 $17 $20 TOTAL INVESTMENT $142 $201 $190 $247 RETURN - INCREMENTAL NOI PER SQUARE FOOT Mark-to-market future renovated space $21 $31 $23 $34 RETURN ON INVESTMENT (ROI) 10% 22% 9% 18% Note: While a white-box space when vacated typically requires a full new installation upon the signing of a new lease, pre-built spaces typically require small refreshment costs of paint, carpet, and appliances at the end of each lease term, and are intended to last for up to 25 years of occupancy by one or more tenants over their lifetime. 42

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