Tony Malkin on the Starwood/Equity deal, startups, the REIT market and more: VIDEO

Empire State Realty Trust head offers views in Bloomberg TV interview

New York /
Oct.October 28, 2015 01:55 PM


Empire State Realty Trust chair and CEO Tony Malkin made an appearance on Bloomberg TV yesterday, offering thoughts on everything from Starwood Capital Group’s recent $5.4 billion deal with Equity Residential to his own company’s reluctance to deal with startups.

Malkin was first asked for his take on Barry Sternlicht-led Starwood’s acquisition of a massive, 23,000-unit portfolio of suburban rental units from Sam Zell’s Equity Residential, and noted a “disequilibrium between the way the public market and the private market values real estate right now.”

“The two of them I think are looking at the exact same picture from two different perspectives, and it’s logical, I think, for each of them,” Malkin said.

Malkin then provided some insight into his own company, which is set to release its third quarter earnings results this week. When asked about underperformance across the REIT sector at large this year, he noted that Empire State Realty Trust was “actually doing quite nicely” over the past 12 months.

“We have one of the lowest levels of debt in any REIT; certainly of all of our comps, we have the lowest level,” Malkin said, adding that his company is “playing for the long-term.”

He was also asked about his REIT’s noted reluctance to accommodate startup firms and even major tenants like WeWork – a decision that has “rankled” some in the city’s startup community – while being more than willing to accommodate TAMI tenants like LinkedIn and Shutterstock.

“I don’t think that LinkedIn is a gig-worker center of excellence,” Malkin said, referencing WeWork’s business model. “LinkedIn is a real company… They have a tremendous amount of embedded growth within them. They’ve demonstrated the ability to execute.”

“We look at them, we look at Shutterstock; these are different businesses. Startups, we’re not interested in,” he added. “What’s the predictability of future cash flows?… I’d rather collect rent from somebody I know has a certainty of paying it.”

See the entire interview above. [Bloomberg]Rey Mashayekhi


Related Articles

arrow_forward_ios
Clockwise from top left: Boston Properties' Owen Thomas; Empire Real Estate Trust's Tony Malkin; Equity Commonwealth's David Helfand; Columbia Property Trust's Nelson Mills; SL Green's Marc Holliday; Vornado Realty Trust's Steve Roth; and Brookfield's Brian Kingston (Getty)

Office unease: Tenants are paying up but staying away

Office unease: Tenants are paying up but staying away
Empire State Realty Trust CEO Anthony Malkin and the Empire State Building (Photos via Getty Images)

Empire State Realty cancels dividend for rest of 2020

Empire State Realty cancels dividend for rest of 2020
Jonathan Litt of Land & Buildings (Getty Images/iStock)

Armed with a modest checkbook but a big pulpit, Jonathan Litt is going after Big Office. Can he prevail?

Armed with a modest checkbook but a big pulpit, Jonathan Litt is going after Big Office. Can he prevail?
ESRT CEO Anthony Malkin and the Empire State Building (Malkin by Sean Zanni/Patrick McMullan via Getty Images; iStock)

Is the Empire State Building a symbol of Covid woes?

Is the Empire State Building a symbol of Covid woes?
Tony Malkin (Getty)

Empire State Realty Trust lost $20M in Q2

Empire State Realty Trust lost $20M in Q2
From left: Empire State Building, One Vanderbilt and 220 Central Park South

REITs: A crystal ball for NYC’s commercial real estate

REITs: A crystal ball for NYC’s commercial real estate
Anthony Malkin, president of the Empire State Realty Trust, sounded off on working from home, police protests and a socially distanced Observatory. (Getty, iStock)

Tony Malkin on looting, unions and Empire State Building reopening

Tony Malkin on looting, unions and Empire State Building reopening
Tony Malkin of Empire State Realty Trust (Getty)

Tony Malkin is shaking things up at Empire State Realty Trust

Tony Malkin is shaking things up at Empire State Realty Trust
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...