BLACKROCK, INC. (NYSE:BLK) Files An 8-K Entry into a Material Definitive Agreement

BLACKROCK, INC. (NYSE:BLK) Files An 8-K Entry into a Material Definitive Agreement

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Item 1.01.

Entry into a Material Definitive Agreement.
On May 24, 2017, BlackRock, Inc. (the Company) entered into an
agreement (the Lease) with 50 HYMC Owner LLC (the Landlord) to
lease approximately 847,000 rentable square feet of office space
at a building to be located at 50 Hudson Yards, New York, New
York (50 Hudson Yards). The Company expects to locate its new
corporate headquarters at 50 Hudson Yards, which is owned by a
joint venture of The Related Companies, L.P. (Related) and Oxford
Hudson Yards LLC (Oxford). The term of the Lease is twenty years
from the rent commencement date, which is expected to begin on or
about May 1, 2023, with the Company having the option to renew up
to a specified term subject to certain conditions. The Company
will have the option to terminate the Lease under certain
circumstances prior to the completion of the full Lease term.
Under the Lease, the Company may occupy the premises for a
specified period of time before the Companys obligation to pay
rent commences. The Lease is expected to require annual base
rental payments of approximately $50.8 million per year during
the first five years of the Lease term, increasing every five
years to $58.4 million, $66.1 million and $73.7 million per year
(or approximately $1.25 billion in base rent over its twenty year
term). The Company will also be responsible for its proportionate
share of actual operating expenses, as well as property taxes or
payments in lieu thereof.
In connection with the Lease, the Company and the Landlord also
agreed on provisions for: the design and construction of 50
Hudson Yards, including a cash allowance to be provided to the
Company for use in design and construction of the leased
premises; indemnification of the Company if the Landlord cannot
timely deliver the premises so as to enable the Company to occupy
the leased premises and surrender its existing premises on or
before May 1, 2023; and guarantees by Related and/or Oxford
entities of payment and performance of the Landlords holdover
indemnification and design and construction obligations referred
to above.
Forward-looking Statements
This Form 8-K, and other statements that the Company may make,
may contain forward-looking statements within the meaning of the
Private Securities Litigation Reform Act, with respect to the
Companys future financial or business performance, strategies or
expectations, including, but not limited to, expectations in
connection with the Lease and the building. Forward-looking
statements are typically identified by words or phrases such as
trend, potential, opportunity, pipeline, believe, comfortable,
expect, anticipate, current, intention, estimate, position,
assume, outlook, continue, remain, maintain, sustain, seek,
achieve, and similar expressions, or future or conditional verbs
such as will, would, should, could, may and similar expressions.
The Company cautions that forward-looking statements are subject
to numerous assumptions, risks and uncertainties, which change
over time. Forward-looking statements speak only as of the date
they are made, and the Company assumes no duty to and does not
undertake to update forward-looking statements. Actual results
could differ materially from those anticipated in forward-looking
statements and future results could differ materially from
historical performance.
In addition to risk factors previously disclosed in the Companys
Securities and Exchange Commission (SEC) reports and those
identified elsewhere in this Form 8-K, the following factors,
among others, could cause actual results to differ materially
from forward-looking statements or historical performance: (1)
the introduction, withdrawal, success and timing of business
initiatives and strategies; (2) changes and volatility in
political, economic or industry conditions, the interest rate
environment, foreign exchange rates or financial and capital
markets, which could result in changes in demand for products or
services or in the value of assets under management; (3) the
relative and absolute investment performance of the Companys
investment products; (4) the impact of increased competition; (5)
the impact of future acquisitions or divestitures; (6) the
unfavorable resolution of legal proceedings; (7) the extent and
timing of any share repurchases; (8) the impact, extent and
timing of technological changes and the adequacy of intellectual
property, information and cyber security protection; (9) the
potential for human error in connection with the Companys
operational systems; (10) the impact of legislative and
regulatory actions and reforms, including the Dodd-Frank Wall
Street Reform and Consumer Protection Act, and regulatory,
supervisory or enforcement actions of government agencies
relating to the Company or The PNC Financial Services Group,
Inc.; (11) changes in law and policy accompanying the new
administration and uncertainty pending any such changes; (12)
terrorist activities, international hostilities and natural
disasters, which may adversely affect the general economy,
domestic and local financial and capital markets, specific
industries or the Company; (13) the ability to attract and retain
highly talented professionals; (14) fluctuations in the carrying
value of the Companys economic investments; (15) the impact of
changes to tax legislation, including income, payroll and
transaction taxes, and taxation on products or transactions,
which could affect the value proposition to clients and,
generally, the tax position of the Company; (16) the Companys
success in negotiating distribution arrangements and maintaining
distribution channels for its products; (17) the failure by a key
vendor of the Company to fulfill its obligations to the Company;
(18) any disruption to the operations of third parties whose
functions are integral to the Companys ETF platform; (19) the
impact of the Company electing to provide support to its products
from time to time and any potential liabilities related to
securities lending or other indemnification obligations; and (20)
the impact of problems at other financial institutions or the
failure or negative performance of products at other financial
institutions.
The Companys Annual Report on Form 10-K, Quarterly Reports on
Form 10-Q and the Companys subsequent filings with the SEC,
accessible on the SECs website at www.sec.gov and on the Companys
website at www.blackrock.com, discuss these factors in more
detail and identify additional factors that can affect
forward-looking statements. The information contained on the
Companys website is not a part of this Form 8-K.
Item 2.03.
Creation of a Direct Financial Obligation or an Obligation
Under an Off-balance Sheet Arrangement of a Registrant.
The information contained under Item 1.01 above is incorporated
herein by reference.


About BLACKROCK, INC. (NYSE:BLK)

BlackRock, Inc. is an investment management company. The Company provides a range of investment and risk management services to institutional and retail clients across the world. Its offerings include single and multi-asset class portfolios investing in equities, fixed income, alternatives and money market instruments. Its products are offered directly and through intermediaries in a range of vehicles, including open-end and closed-end mutual funds, iShares exchange-traded funds (ETFs), separate accounts, collective investment funds and other pooled investment vehicles. The Company offers its BlackRock Solutions (BRS) investment and risk management technology platform, Aladdin; risk analytics, and advisory services and solutions to institutional investors. BRS also offers risk reporting capabilities via the Green Package and risk management advisory services; interactive fixed income analytics through its Web-based calculator, AnSer; outsourcing services, and investment accounting.

BLACKROCK, INC. (NYSE:BLK) Recent Trading Information

BLACKROCK, INC. (NYSE:BLK) closed its last trading session up +7.84 at 404.15 with 494,457 shares trading hands.

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