Update Provided on Broadcast Tenant Discussions
NEW YORK--(BUSINESS WIRE)--
Empire State Realty Trust, Inc. (NYSE:ESRT) (the "Company"), a
real estate investment trust with office and retail properties in
Manhattan and the greater New York metropolitan area, today announced
that it has successfully renewed and extended its leases with Univision
Television Group, Inc. (Univision) from their current expirations in
2016 and 2018 to a new expiration in December 2025. Three existing
broadcast tenants, CBS Broadcasting Inc. (NYSE: CBS), NBC Universal
Media LLC, a subsidiary of Comcast (NASDAQ: CMCSA), and THIRTEEN (WNET)
have notified the Company that they have committed to move to One World
Trade Center and will vacate the Empire State Building at the end of
their current lease terms in 2017 and 2018.
The non-renewing leases with CBS, NBC and WNET generated approximately
$6.0 million in aggregate revenue (inclusive of expense reimbursements)
over the twelve months ended September 30, 2015. For the same time
period, revenue from Univision totaled approximately $2.8 million
(inclusive of expense reimbursements). Commencing as of January 2016,
annual revenue from Univision will adjust to an initial amount of $1.9
million, and is subject to escalations. The Company’s trailing twelve
month total revenue for the period ended September 30, 2015 was $662.8
million. Due to the relatively small size of the broadcasting business
within Empire State Realty Trust, neither the extension of nor
non-renewal of broadcast leases has or is expected to have a material
impact on the Company’s financial results. The Company intends to
provide additional disclosure related to the broadcast business in its
quarterly supplemental package and filings, as appropriate.
“We continue negotiations for renewal agreements with our broadcast
tenants. As we have previously disclosed, some may choose to move
locations when existing agreements expire, and we may see a reduction in
revenue and a requirement for capital expenditures,” stated John B.
Kessler, Empire State Realty Trust’s President and Chief Operating
Officer. “Our goal is to achieve terms which make sense for our
broadcast partners and provide attractive returns to our shareholders.
We remain focused on the successful execution of our strategic plan to
unlock embedded, de-risked growth within our portfolio as we
consolidate, redevelop and re-lease space at industry leading spreads,
and this dwarfs any impact of any outcome from our broadcasting
business. With our low-levered, fortress balance sheet, we believe we
will continue to create meaningful value from our portfolio of assets
and drive the highest returns for our shareholders.”
About Empire State Realty Trust
Empire State Realty Trust, Inc. (NYSE: ESRT), a leading real estate
investment trust (REIT), owns, manages, operates, acquires and
repositions office and retail properties in Manhattan and the greater
New York metropolitan area, including the Empire State Building, the
world’s most famous building. Headquartered in New York, New York, the
Company’s office and retail portfolio covers 10.1 million rentable
square feet, as of September 30, 2015, consisting of 9.4 million
rentable square feet in 14 office properties, including nine in
Manhattan, three in Fairfield County, Connecticut and two in Westchester
County, New York; and approximately 720,000 rentable square feet in the
retail portfolio.
Forward-Looking Statements
This press release includes “forward looking statements”.
Forward-looking statements may be identified by the use of words such as
“believes,” “expects,” “may,” “will,” “should,” “seeks,”
“approximately,” “intends,” “plans,” “pro forma,” “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: the factors included in (i) the Company's
Annual Report on Form 10-K for the year ended December 31, 2014,
including those set forth under the headings "Risk Factors,"
"Management's Discussion and Analysis of Financial Condition and Results
of Operations," "Business,” and “Properties" and (ii) in future periodic
reports filed by the Company under the Securities and Exchange Act of
1934, as amended. While forward-looking statements reflect the Company's
good faith beliefs, they are not guarantees of future performance. The
Company disclaims any obligation to publicly update or revise any
forward-looking statement to reflect changes in underlying assumptions
or factors, or new information, data or methods, future events or other
changes after the date of this press release, except as required by
applicable law. 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 Annual Report on Form
10-K for the year ended December 31, 2014 and other risks described in
documents subsequently filed by the Company from time to time with the
Securities and Exchange Commission. 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).
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Empire State Realty Trust Investor Relations
212-850-2678
IR@empirestaterealtytrust.com
Source: Empire State Realty Trust, Inc.