Septem ember er 201 016 1 Disclaimer We make forward-looking - PowerPoint PPT Presentation

Septem ember er 201 016 1

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 & 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 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 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 PERSPECTIVE terminations of, or non-renewal of leases by tenants; bankruptcy or insolvency of a major tenant or a significant 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 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 a real estate investment trust, or REIT; a future 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 forward- looking 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 a further 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, 2015, any subsequent reports on Forms 10-Q and 8-K and other risks described in documents we subsequently file from time to time with the Securities and Exchange Commission. 2

Investor Highlights › Pure-play Manhattan and greater New York metropolitan area › Embedded, de-risked growth potential from four drivers of growth › Strong and flexible balance sheet, lowest leverage among Office REIT peers › Proven management team 3

Management Team EXPERIENCED AND COMMITTED Anthony ny E. M Malk lkin in Tho homas as P. D Dur urels Dav avid d A. A. K Karp rp John hn B B. Kessler Tho homas as N. K Keltne ner, Jr Jr. Chairman & Executive Vice President Executive Vice President President & Chief Executive Vice President, & Chief Financial Officer Chief Executive Officer & Director of Leasing and Operating Officer General Counsel 5 ye years rs with E ESRT 28 ye years rs with E ESRT 2 year ear with E ESRT Operations & Secretary 33 ye years rs in i indust stry ry 28 ye years rs in i indust stry ry 27 ye years rs in i indust stry ry 26 ye years rs with E ESRT 38 ye years rs with E ESRT Bachelor’s degree from 33 ye years rs in i indust stry ry Bachelor’s degree from Bachelor’s degree from 38 ye years rs in i indust stry ry University of California, Harvard College Bachelor’s degree from Harvard College and Bachelor’s degree from Berkeley and M.B.A. from Lehigh University M.B.A. from the Booth Harvard College and J.D. the Wharton School at School at the from Columbia Law the University of Chicago School University of Pennsylvania › Senior management team with an average of approximately 32 years of experience in real estate › Since IPO, management team bench has been deepened with key additions › Extensive experience in Greater New York area real estate, through several economic and real estate cycles › Management is aligned with shareholders › Senior management team owns a significant amount of stock › The Malkin Family, led by Anthony E. Malkin, has not sold any shares, either at or after IPO 4

Delivered on Promises STEADY CASH NOI GROWTH; EXECUTING ON LEASING Q2 2016 Steady Cash NOI Growth 2 › 176,533 SF of leasing $360,000 › 58.1% spreads $340,000 thousand achieved on new Manhattan office $320,000 leases $300,000 › Signed larger leases $280,000 for longer term with $260,000 better credit tenants $240,000 › Reported 3.5% same- store NOI growth $220,000 year-over-year $200,000 compared to peer 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 group average of - Cash NOI on TTM basis 0.1% 1 1 Data is from Green Street Advisors Office Sector Update report dated August 30, 2016. Peer group includes Boston Properties, Paramount Group, SL Green and the office properties of Vornado Realty Trust. 2 All figures are in dollars in thousands. Company data and filings as of June 30, 2016. Cash NOI is a non-GAAP measure that is reconciled to its GAAP equivalent measure in the appendix. 4Q 2013 through 2Q 2014 exclude the benefit of the acquisitions on July 15, 2014 of the option properties at 1400 Broadway and 111 West 33 rd Street. 5

Portfolio Overview PURE-PLAY MANHATTAN AND GREATER NEW YORK METROPOLITAN AREA 10.1 Million Total Rentable 9.4 Million Rentable Square Feet Square Feet of Office Space GNYM GNYM Office Office 18.5% 20% Retail 7.1% Manhattan Office Manhattan Office 74.4% 80% Company data and filings as of June 30, 2016. 6

Varied Tenant Base DIVERSIFIED BY INDUSTRY Other Non-Profit 13.1% Consumer 3.7% Goods 23.9% Media & Advertising 3.7% Technology 7.9% Finance, Insurance, Real Legal Services Estate 3.7% 18.2% Retail Professional 14.0% Services 11.8% Industry diversification by annualized fully escalated rent. Company data and filings as of June 30, 2016. 7

Manhattan Portfolio Centra ral P Park rk 111 West 33 rd Street One Grand Central Place 111 West 33 rd d Street 111 W eet 1400 Broadway 1359 Broadway 8

Tenant Lease Expirations WELL LADDERED MANHATTAN OFFICE PORTFOLIO LEASE EXPIRATIONS 51.8% 10.6% 9.9% 8.2% 7.0% 6.8% 3.0% 2.7% Available SLNC 2016 2017 2018 2019 2020 Thereafter Company data and filings as of June 30, 2016. 9

Four Drivers of Embedded De-risked Growth OVER 30% GROWTH POTENTIAL RELATIVE TO TTM CASH NOI OF $339M Signed Lease up of leases not vacant space commenced $40 M $27 M $108 Million Retail Redevelopment opportunity Opportunity $18 M $23 M Amounts reflect management’s estimates of additional revenues from four drivers as of June 30, 2016 to be realized over time. Cash NOI is a non-GAAP measure that is reconciled to its GAAP equivalent measure in the appendix. Company data and filings as of June 30, 2016. 10