Company Profile

Research Coverage

Selected Financial Information

Guidance

Financial Highlights

Consolidated Balance Sheets

Consolidated Statements of Income

Select Income Statement Data

Funds From Operations (“FFO”)

Funds Available for Distribution (“FAD”)

Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (“EBITDAre”)

Net Operating Income (“NOI”)

Same Store Results

Consolidated Joint Ventures and Fund

Unconsolidated Joint Ventures

Unconsolidated Funds Summary

Capital Structure

Debt Analysis

Debt Maturities

Selected Property Data

Portfolio Summary

Same Store Leased Occupancy

Top Tenants and Industry Diversification

Leasing Activity

Lease Expirations

Cash Basis Capital Expenditures

Definitions

Mark Patterson

Director

James Feldman

Thomas Catherwood        

Derek Johnston

Steve Sakwa

(646) 855-5808

(212) 738-6140

(904) 520-4973

(212) 446-9462

james.feldman@baml.com

tcatherwood@btig.com

derek.johnston@db.com

steve.sakwa@evercoreisi.com

Richard Skidmore

Daniel Ismail

Omotayo Okusanya

Vikram Malhotra

(801) 741-5459

(949) 640-8780

(646) 949-9672

(212) 761-7064

richard.skidmore@gs.com

dismail@greenst.com

omotayo.okusanya@mizuhogroup.com

vikram.malhotra@morganstanley.com

Blaine Heck

(443) 263-6529

blaine.heck@wellsfargo.com

With the exception of Green Street Advisors, an independent research firm, the equity analysts listed above are those analysts that, according to First Call Corporation, have published research material on the Company and are listed as covering the Company. Please note that any opinions, estimates or forecasts regarding the Company’s performance made by such analysts do not represent the opinions, estimates or forecasts of the Company or its management. The Company does not by its reference above, imply its endorsement of or concurrence with any information, conclusions or recommendations made by any such analysts.

Estimated net income attributable to common stockholders

Our share of real estate depreciation and amortization

Estimated Core FFO ⁽¹⁾⁽²⁾

Operating Assumptions:

Leasing Activity (square feet)

PGRE’s share of Same Store Leased % ⁽²⁾ at year end

Increase in PGRE’s share of Same Store Cash NOI ⁽²⁾

Increase in PGRE’s share of Same Store NOI ⁽²⁾

Financial Assumptions (at share):

Estimated net income

Depreciation and amortization

General and administrative expenses

Interest and debt expense, including amortization of deferred financing costs

Fee income, net of income taxes

Other, net (primarily interest income)

NOI ⁽²⁾

Straight-line rent adjustments and above and below-market lease revenue, net

Cash NOI ⁽²⁾

We are providing our Estimated Core FFO Guidance for the full year of 2020, which is reconciled above to estimated net income attributable to common stockholders per diluted share in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The estimated net income attributable to common stockholders per diluted share is not a projection and is being provided solely to satisfy the disclosure requirements of the U.S. Securities and Exchange Commission (“SEC”). Except as described above, these estimates reflect management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels and the earnings impact of the events referenced in our earnings release issued on February 12, 2020 and otherwise referenced during our conference call scheduled for February 13, 2020. These estimates do not include the impact on operating results from possible future property acquisitions or dispositions, capital markets activity or realized and unrealized gains or losses on real estate fund investments. The estimates set forth above may be subject to fluctuations as a result of several factors, including straight-line rent adjustments and the amortization of above and below-market leases. There can be no assurance that our actual results will not differ materially from the estimates set forth above.

See page 43 for our definition of this measure.

Net (loss) income attributable to common stockholders

Per share - basic and diluted

Core FFO attributable to common stockholders ⁽¹⁾

Per share - diluted

PGRE’s share of Cash NOI ⁽¹⁾

PGRE’s share of NOI ⁽¹⁾

Leased % ⁽¹⁾

Share Price:

High

Low

Closing (end of period)

Dividends per common share

Annualized dividends per common share

Dividend yield (on closing share price)

See page 43 for our definition of this measure.

Assets:

Real estate, at cost:

Land

Buildings and improvements

Accumulated depreciation and amortization

Real estate, net

Cash and cash equivalents

Restricted cash

Investments in unconsolidated joint ventures

Investments in unconsolidated real estate funds

Preferred equity investments

Accounts and other receivables, net

Due from affiliates

Deferred rent receivable

Deferred charges, net

Intangible assets, net

Other assets

Total assets

Liabilities:

Notes and mortgages payable, net

Revolving credit facility

Accounts payable and accrued expenses

Dividends and distributions payable

Intangible liabilities, net

Other liabilities

Total liabilities

Equity:

Paramount Group, Inc. equity

Noncontrolling interests in:

Consolidated joint ventures

Consolidated real estate fund

Operating Partnership

Total equity

Total liabilities and equity

Revenues:

Rental revenue ⁽¹⁾

Fee and other income ⁽¹⁾

Total revenues

Expenses:

Operating

Depreciation and amortization

General and administrative ⁽¹⁾

Transaction related costs

Total expenses

Other income (expense):

(Loss) income from unconsolidated joint ventures

(Loss) income from unconsolidated real estate funds

Interest and other income, net ⁽¹⁾

Interest and debt expense ⁽¹⁾

Loss on early extinguishment of debt

Real estate impairment loss

Gain on sale of real estate

Net (loss) income before income taxes

Income tax benefit (expense)

Net (loss) income

Less net (income) loss attributable to noncontrolling interests in:

Consolidated joint ventures

Consolidated real estate fund

Operating Partnership

Net (loss) income attributable to common stockholders

Per diluted share

Capitalized internal leasing costs

See page 10 for details.

Rental Revenue:

Property rentals

Tenant reimbursements

Straight-line rent adjustments

Amortization of above and below-market leases, net

Lease termination income

Total rental revenue

Fee and Other Income:

Property management

Asset management

Acquisition and disposition

Other

Total fee income

Other (primarily parking income and tenant requested services, including overtime heating and cooling)

Total fee and other income

General and Administrative:

Cash general and administrative

Non-cash general and administrative—stock-based compensation expense

Mark-to-market of deferred compensation plan liabilities (offset by an increase in the mark-to-market of plan assets, which is included in “interest and other income”)

Total general and administrative

Interest and Other Income, net:

Interest income, net

Mark-to-market of deferred compensation plan assets (offset by an increase in the mark-to-market of plan liabilities, which is included in “general and administrative” expenses)

Preferred equity investment income ⁽¹⁾

Total interest and other income, net

Represents 100% of the investment income from PGRESS Equity Holdings, L.P., of which our 24.4% share is $221 for the three months ended December 31, 2018 and $111 and $890 for the years ended December 31, 2019 and 2018, respectively. On March 1, 2019, our only remaining preferred equity investment was redeemed.

Interest and Debt Expense:

Interest expense

Amortization of deferred financing costs

Total interest and debt expense

Includes $8,215 of expense from the non-cash write-off of deferred financing costs in connection with the $1.25 billion refinancing of 1633 Broadway in November 2019.

Reconciliation of net (loss) income to FFO and Core FFO:

Net (loss) income

Real estate depreciation and amortization (including our share of unconsolidated joint ventures)

Real estate impairment loss

Gain on sale of real estate

FFO ⁽¹⁾

Less FFO attributable to noncontrolling interests in:

Consolidated joint ventures

Consolidated real estate fund

FFO attributable to Paramount Group Operating Partnership

Less FFO attributable to noncontrolling interests in Operating Partnership

FFO attributable to common stockholders ⁽¹⁾

Per diluted share

FFO

Non-core items:

Our share of (distributions from 712 Fifth Avenue in excess of earnings) and earnings in excess of distributions

Loss on early extinguishment of debt

Non-cash write-off of deferred financing costs

Other, net

Core FFO ⁽¹⁾

Less Core FFO attributable to noncontrolling interests in:

Consolidated joint ventures

Consolidated real estate fund

Core FFO attributable to Paramount Group Operating Partnership

Less Core FFO attributable to noncontrolling interests in Operating Partnership

Core FFO attributable to common stockholders ⁽¹⁾

Per diluted share

Reconciliation of weighted average shares outstanding:

Weighted average shares outstanding

Effect of dilutive securities

Denominator for FFO and Core FFO per diluted share

See page 43 for our definition of this measure.

Reconciliation of Core FFO to FAD:

Core FFO

Add (subtract) adjustments to arrive at FAD:

Amortization of stock-based compensation expense

Amortization of deferred financing costs (including our share of unconsolidated joint ventures)

Amortization of above and below-market leases, net (including our share of unconsolidated joint ventures)

Expenditures to maintain assets

Second generation tenant improvements and leasing commissions

Straight-line rent adjustments (including our share of unconsolidated joint ventures)

FAD ⁽¹⁾

Less FAD attributable to noncontrolling interests in:

Consolidated joint ventures

Consolidated real estate fund

FAD attributable to Paramount Group Operating Partnership

Less FAD attributable to noncontrolling interests in Operating Partnership

FAD attributable to common stockholders ^{(1) (2)}

Dividends declared on common stock

See page 43 for our definition of this measure.

FAD attributable to common stockholders is not necessarily indicative of future FAD amounts due to fluctuations in the timing of payments for tenant improvements and leasing commissions versus rents received from leases for which such costs are incurred.

Excludes $8,215 of expense from the non-cash write-off of deferred financing costs in connection with the $1.25 billion refinancing of 1633 Broadway in November 2019.

Reconciliation of net (loss) income to EBITDAre and Adjusted EBITDAre:

Net (loss) income

Add (subtract) adjustments to arrive at EBITDAre and Adjusted EBITDAre:

Depreciation and amortization (including our share of unconsolidated joint ventures)

Interest and debt expense (including our share of unconsolidated joint ventures)

Income tax (benefit) expense (including our share of unconsolidated joint ventures)

Real estate impairment loss

Gain on sale of real estate

EBITDAre ⁽¹⁾

Less EBITDAre attributable to noncontrolling interests in:

Consolidated joint ventures

Consolidated real estate fund

PGRE’s share of EBITDAre ⁽¹⁾

EBITDAre

Add (subtract) adjustments to arrive at Adjusted EBITDAre:

Our share of (distributions from 712 Fifth Avenue in excess of earnings) and earnings in excess of distributions

Loss on early extinguishment of debt

Other, net

Adjusted EBITDAre ⁽¹⁾

Less Adjusted EBITDAre attributable to noncontrolling interests in:

Consolidated joint ventures

PGRE’s share of Adjusted EBITDAre ⁽¹⁾

See page 43 for our definition of this measure.

Reconciliation of net (loss) income to NOI and Cash NOI:

Net (loss) income

Add (subtract) adjustments to arrive at NOI and Cash NOI:

Depreciation and amortization

General and administrative

Interest and debt expense