Empire State Realty Trust, Inc.

Greetings and welcome to the Empire State Realty Trust second quarter 2026 earnings call. At this time, all participants are in a listen-only mode. The question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Suzanne Liu, SVP, Chief Counsel, Real Estate. Thank you. You may begin.

Good afternoon. Welcome to Empire State Realty Trust's second quarter 2026 earnings conference call. In addition to the press release distributed yesterday, a quarterly supplemental package with further detail on our results and our latest investor presentation were posted in the investor section of the company's website at esrtreit.com. During today's call, management's prepared remarks and responses to questions may include forward-looking statements within the meaning of applicable securities laws. These statements reflect management's current views and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. Empire State Realty Trust assumes no obligation to update any forward-looking statement in the future. We encourage listeners to review the more detailed discussions related to these forward-looking statements in the company's filings with the SEC. During today's call, we will discuss certain non-GAAP financial measures, such as FFO, Modified and Core FFO, NOI, Same Store Property Cash NOI, EBITDA, and Adjusted EBITDA, which we believe are meaningful in evaluating the company's performance. The definitions and reconciliations of these measures to the most directly comparable GAAP measures are included in their earnings release and supplemental package, each available on the company's website. Now I'll turn the call over to Tony Malkin, our Chairman and Chief Executive Officer.

Tony Malkin Good afternoon, everyone. Yesterday we reported ESRT's second quarter results. We delivered strong performance across the property portfolio, which represents approximately 80% of our NOI. Office leasing accelerated from the first quarter as we converted our pipeline into executed leases. Our retail portfolio was highly leased, and our multifamily properties delivered solid growth. We remain active on transactions. During the quarter, we completed the once-in-a-lifetime opportunity to acquire the land under 111 West 33rd Street and 1400 Broadway and executed on the sale of 250 West 57th Street, the proceeds from which we swapped into the prior purchase of 130 Mercer. Against excellent leasing in our property portfolio, the Empire State Building Observation Deck weighed on performance. In our press release, we gave an updated FFO range under an assumption there is no improvement to current visitation levels, but it utilizes $55 million of NOI for the observation deck for full year 2026. I'll spend a few minutes on our observation deck business, then get to our strong leasing. During our first quarter call, We called out softer visitation amidst today's geopolitical environment and K-shaped consumer economy and stated it was premature to alter guidance based upon performance in our seasonally lightest quarter. We did say we would reassess our outlook after six months of results. In our NAREIT meetings and updated presentation we shared, that softer visitation persisted The Empire State Building remains the world's most famous building and its brand is undiminished. Our iconic Empire State Building Observation Deck remains a world-class attraction with absolute top-of-sector customer reviews. The Empire State Building Observation Deck was ranked number one as an attraction in the U.S. by TripAdvisor last year. and we had 326 billion global media impressions. We remain the international symbol of New York City. The path ahead is to convert our international brand to revenues amidst the following changes in the market. Historically, we have relied on international visitors. In the past more than 60% of our visitors were international. Last week, in which we had our second highest visitor numbers of 2026, more than 60% of our visitors were domestic. While not as high a number for the year to date, the shift is definitely to a majority of domestic visitors. The past program channel that has been a source of significant visitor traffic to us has experienced significant headwinds. Historically, these past programs have been largely international and specifically with the international budget conscious traveler. One past program operator went out of business in 2025. From 2024 year to date to 2026 years to date, we have seen a 45% decline in past program visitors. While all attractions have experienced reduced visitorship in 2026, our drop compared to the market in general is larger due to our prior dominance with patch programs and their international presence. And these in fact may be tailwinds in the future. The competitive environment with other observation decks and alternatives is also a factor. We began A total reevaluation of our observatory business model and execution early in the first quarter in anticipation that market conditions may continue to work against our historic customer sourcing mix. With our team and logical partners, this is a fresh channel-by-channel approach. Part of that is the shift from traditional search engine to AI search. This is ongoing work, and we have adjusted our online presence to accommodate the impacts of this shift. Some of our actions have already produced positive results. Historically, our operational costs have been relatively fixed and made tremendous operating leverage with increased visitors and revenue. At the same time, we will reinvest to strengthen the business and monetize on the strong brand and operations over the long term. We've remained confident in the long-term value of our iconic asset. Let me turn to our real estate business. The Manhattan office leasing market remains healthy for our top-of-tier product. Tenant demand remains broad-based and resilient. Availability of high-quality space remains constrained, and there is no new construction at our price point. These dynamics continue to support strong leasing fundamentals for our portfolio. Our commercial portfolio was 94.9% leased at quarter end, and we expect occupancy gains for the year. We achieved our 20th consecutive quarter of positive mark-to-market spreads within our Manhattan office portfolio, which reflects sustained demand for our best-in-class assets. Our portfolio remains well positioned to deliver strong operating results. Brian will discuss our and his significant leasing accomplishments in the second quarter. DSRT has maintained a leadership position in sustainability for more than a decade. Our focus remains on measurable business outcomes that produce that produce viable outcomes. Sustainability remains an important differentiator that attracts tenants and supports retention, renewals, and expansions across our portfolio. Across the organization, we remain laser-focused on four priorities. Lease space, optimize observation deck and Empire State building brand cash flow, maintain our balance sheet and achieve our sustainability goals. These priorities guide every decision and we make and align directly with our objectives to drive long-term cash flow growth and value creation. Christina, Ryan, and Steve will provide additional detail on our results and outlook. Christina?