Paramount Group, Inc. - FORM 8-K - EX-99.2

Attached files

file	filename
EX-99.1 - EX-99.1 - Paramount Group, Inc.	pgre-ex991_7.htm
8-K - 8-K - Paramount Group, Inc.	pgre-8k_20210428.htm

Exhibit 99.2

FORWARD-LOOKING STATEMENTS


This supplemental information contains forward-looking statements within the meaning of the federal securities laws. You can identify these statements by our use of the words “assumes,” “believes,” “estimates,” “expects,” “guidance,” “intends,” “plans,” “projects” and similar expressions that do not relate to historical matters. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and could materially affect actual results, performance or achievements. These factors include, without limitation, the negative impact of the coronavirus 2019 (COVID-19) global pandemic on the U.S., regional and global economies and our tenants' financial condition and results of operations, the ability to enter into new leases or renew leases on favorable terms, dependence on tenants’ financial condition, trends in the office real estate industry including telecommuting, flexible work schedules, open workplaces and teleconferencing, the uncertainties of real estate development, acquisition and disposition activity, the ability to effectively integrate acquisitions, the costs and availability of financing, the ability of our joint venture partners to satisfy their obligations, the effects of local, national and international economic and market conditions, the effects of acquisitions, dispositions and possible impairment charges on our operating results, regulatory changes, including changes to tax laws and regulations, and other risks and uncertainties detailed from time to time in our filings with the U.S. Securities and Exchange Commission. We do not undertake a duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

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		TABLE OF CONTENTS

		Page
Company Profile		4

Research Coverage		5

Selected Financial Information
	Guidance	6
	Financial Highlights	7
	Consolidated Balance Sheets	8
	Consolidated Statements of Income	9
	Select Income Statement Data	10
	Funds From Operations ("FFO")	11
	Funds Available for Distribution ("FAD")	12
	Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate ("EBITDAre")	13
	Net Operating Income ("NOI")	14 - 15
	Same Store Results	16 - 17
	Consolidated Joint Ventures and Fund	18 - 21
	Unconsolidated Joint Ventures	22 - 25
	Capital Structure	26
	Debt Analysis	27
	Debt Maturities	28

Selected Property Data
	Portfolio Summary	29
	Same Store Leased Occupancy	30
	Top Tenants and Industry Diversification	31
	Leasing Activity	32
	Lease Expirations	33 - 35
	Cash Basis Capital Expenditures	36


Definitions		37 - 38

- 3 -


		COMPANY PROFILE

Paramount Group, Inc. ("Paramount" or the "Company") is a fully-integrated real estate investment trust that owns, operates, manages, acquires and redevelops high-quality, Class A office properties located in select central business district submarkets of New York and San Francisco. Paramount is focused on maximizing the value of its portfolio by leveraging the sought-after locations of its assets and its proven property management capabilities to attract and retain high-quality tenants.

MANAGEMENT

Albert Behler		Chairman, Chief Executive Officer and President
Wilbur Paes		Chief Operating Officer, Chief Financial Officer and Treasurer
Peter Brindley		Executive Vice President, Head of Real Estate
David Zobel		Executive Vice President, Head of Acquisitions
Gage Johnson		Senior Vice President, General Counsel and Secretary
Ermelinda Berberi		Senior Vice President, Chief Accounting Officer

BOARD OF DIRECTORS

Albert Behler		Director, Chairman of the Board
Thomas Armbrust		Director
Martin Bussmann		Director
Colin Dyer		Director
Karin Klein		Director, Chair of Compensation Committee
Peter Linneman		Director, Chair of Audit Committee
Katharina Otto-Bernstein		Director
Mark Patterson		Director, Lead Independent Director, Chair of Nominating and Corporate Governance Committee
Greg Wright		Director

COMPANY INFORMATION

Corporate Headquarters	Investor Relations	Stock Exchange Listing	Trading Symbol
1633 Broadway, Suite 1801	IR@paramount-group.com	New York Stock Exchange	PGRE
New York, NY 10019	(212) 492-2298
(212) 237-3100

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		RESEARCH COVERAGE ⁽¹⁾

James Feldman	Thomas Catherwood	Derek Johnston
Bank of America Merrill Lynch	BTIG	Deutsche Bank
(646) 855-5808	(212) 738-6140	(904) 520-4973
james.feldman@baml.com	tcatherwood@btig.com	derek.johnston@db.com

Steve Sakwa	Richard Skidmore	Daniel Ismail
Evercore ISI	Goldman Sachs	Green Street Advisors
(212) 446-9462	(801) 741-5459	(949) 640-8780
steve.sakwa@evercoreisi.com	richard.skidmore@gs.com	dismail@greenst.com

Omotayo Okusanya	Vikram Malhotra	Blaine Heck
Mizuho Securities USA Inc.	Morgan Stanley	Wells Fargo
(646) 949-9672	(212) 761-7064	(443) 263-6529
omotayo.okusanya@mizuhogroup.com	vikram.malhotra@morganstanley.com	blaine.heck@wellsfargo.com

⁽¹⁾	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.

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GUIDANCE

(unaudited and in thousands, except square feet, % and per share amounts)

				Full Year 2021
(Amounts per diluted share)				Low			High
			Estimated net loss attributable to common stockholders	$	(0.16	)	$	(0.10	)
			Our share of real estate depreciation and amortization		0.98			0.98
			Estimated Core FFO ⁽¹⁾⁽²⁾	$	0.82		$	0.88

	Operating Assumptions:
		Leasing Activity (square feet)			600,000			900,000
		PGRE's share of Same Store Leased % ⁽²⁾ at year end			88.0	%		90.0	%
		Decrease in PGRE's share of Same Store Cash NOI ⁽²⁾			(2.0	%)		-	%
		Decrease in PGRE's share of Same Store NOI ⁽²⁾			(11.5	%)		(9.5	%)

	Financial Assumptions (at share):
		Estimated net loss		$	(38,000	)	$	(24,000	)
			Depreciation and amortization		236,000			236,000
			General and administrative expenses		57,500			55,500
			Interest and debt expense, including amortization of deferred financing costs		136,000			133,000
			Fee income, net of income taxes		(26,500	)		(28,500	)
		NOI ⁽²⁾			365,000			372,000
			Straight-line rent adjustments and above and below-market lease revenue, net		(5,000	)		(6,000	)
		Cash NOI ⁽²⁾		$	360,000		$	366,000

⁽¹⁾		We are reaffirming our Estimated Core FFO Guidance for the full year of 2021, which is reconciled above to estimated net loss attributable to common stockholders per diluted share in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The estimated net loss 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 April 28, 2021 and otherwise referenced during our conference call scheduled for April 29, 2021. 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 the negative impact of the COVID-19 global pandemic, 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.
⁽²⁾		See page 37 for our definition of this measure.

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		FINANCIAL HIGHLIGHTS

(unaudited and in thousands, except per share amounts)

			Three Months Ended
SELECTED FINANCIAL DATA			March 31, 2021			March 31, 2020		December 31, 2020

	Net (loss) income attributable to common stockholders:
		Continuing operations	$	(3,578	)	$	1,968	$	(4,876	)
		Discontinued operations		-			1,380		(9,948	)
	Net (loss) income attributable to common stockholders		$	(3,578	)	$	3,348	$	(14,824	)

	Net (loss) income per share - basic and diluted:
		Per share from continuing operations	$	(0.02	)	$	0.01	$	(0.02	)
		Per share from discontinued operations		-			0.00		(0.05	)
	Net (loss) income per share - basic and diluted		$	(0.02	)	$	0.01	$	(0.07	)

	Core FFO attributable to common stockholders⁽¹⁾		$	50,572		$	61,509	$	52,495
		Per share - diluted	$	0.23		$	0.27	$	0.24

	PGRE's share of Cash NOI ⁽¹⁾		$	89,443		$	98,529	$	97,599
	PGRE's share of NOI ⁽¹⁾		$	95,564		$	110,557	$	100,726

Same Store Cash NOI ⁽¹⁾	% Change				Same Store NOI ⁽¹⁾	% Change
Three Months Ended March 31, 2021 vs. March 31, 2020		(2.6	%)		Three Months Ended March 31, 2021 vs. March 31, 2020		(7.5	%)

PORTFOLIO STATISTICS (at PGRE Share)

	As of
	March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
Leased % ⁽¹⁾		88.6	%		95.2	%		95.5	%		95.6	%		95.9	%

Same Store Leased % ⁽¹⁾	% Change				Same Store Leased % ⁽¹⁾	% Change
March 31, 2021 vs. December 31, 2020		(6.6	%)		March 31, 2021 vs. March 31, 2020		(7.3	%)

COMMON SHARE DATA

		Three Months Ended
Share Price:		March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
	High	$	10.56		$	10.36		$	7.99		$	10.38		$	15.00
	Low	$	8.51		$	5.54		$	6.69		$	6.95		$	6.42
	Closing (end of period)	$	10.13		$	9.04		$	7.08		$	7.71		$	8.80

Dividends per common share		$	0.07		$	0.07		$	0.10		$	0.10		$	0.10
Annualized dividends per common share		$	0.28		$	0.28		$	0.40		$	0.40		$	0.40
Dividend yield (on closing share price)			2.8	%		3.1	%		5.6	%		5.2	%		4.5	%

⁽¹⁾

See page 37 for our definition of this measure.

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		CONSOLIDATED BALANCE SHEETS

(unaudited and in thousands)

			March 31, 2021			December 31, 2020
Assets:
	Real estate, at cost:
		Land	$	1,966,237		$	1,966,237
		Buildings and improvements		6,013,345			5,997,078
				7,979,582			7,963,315
		Accumulated depreciation and amortization		(1,012,213	)		(966,697	)
	Real estate, net			6,967,369			6,996,618
	Cash and cash equivalents			464,652			434,530
	Restricted cash			23,588			30,794
	Investments in unconsolidated joint ventures			411,790			412,724
	Investments in unconsolidated real estate funds			12,961			12,917
	Accounts and other receivables			12,653			17,502
	Deferred rent receivable			337,523			330,239
	Deferred charges, net			111,730			116,278
	Intangible assets, net			144,161			153,519
	Other assets			85,521			48,976
Total assets			$	8,571,948		$	8,554,097

Liabilities:
	Notes and mortgages payable, net		$	3,814,962		$	3,800,739
	Revolving credit facility			-			-
	Accounts payable and accrued expenses			117,260			101,901
	Dividends and distributions payable			16,889			16,796
	Intangible liabilities, net			53,004			55,996
	Other liabilities			63,898			62,931
Total liabilities				4,066,013			4,038,363

Equity:
	Paramount Group, Inc. equity			3,628,473			3,653,177
	Noncontrolling interests in:
		Consolidated joint ventures		438,937			437,161
		Consolidated real estate fund		79,114			79,017
		Operating Partnership		359,411			346,379
Total equity				4,505,935			4,515,734

Total liabilities and equity			$	8,571,948		$	8,554,097

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		CONSOLIDATED STATEMENTS OF INCOME

(unaudited and in thousands, except per share amounts)

		Three Months Ended
		March 31, 2021			March 31, 2020			December 31, 2020
Revenues:
	Rental revenue ⁽¹⁾	$	173,146		$	175,425		$	174,181
	Fee and other income ⁽¹⁾		8,020			8,561			8,177
Total revenues			181,166			183,986			182,358

Expenses:
	Operating		66,618			67,014			68,395
	Depreciation and amortization		58,305			58,427			59,168
	General and administrative ⁽¹⁾		14,364			12,249			17,962
	Transaction related costs		281			203			554
Total expenses			139,568			137,893			146,079

Other income (expense):
	Loss from unconsolidated joint ventures		(5,316	)		(4,221	)		(4,175	)
	Income from unconsolidated real estate funds		180			52			187
	Interest and other income (loss), net ⁽¹⁾		1,302			(996	)		2,130
	Interest and debt expense ⁽¹⁾		(34,739	)		(36,619	)		(35,788	)
Income (loss) from continuing operations, before income taxes			3,025			4,309			(1,367	)
	Income tax expense		(1,141	)		(604	)		(358	)
Income (loss) from continuing operations, net			1,884			3,705			(1,725	)
Income (loss) from discontinued operations, net			-			1,521			(10,890	)
Net income (loss)			1,884			5,226			(12,615	)
Less net (income) loss attributable to noncontrolling interests in:
	Consolidated joint ventures		(5,728	)		(1,514	)		(3,772	)
	Consolidated real estate fund		(85	)		(23	)		159
	Operating Partnership		351			(341	)		1,404
Net (loss) income attributable to common stockholders		$	(3,578	)	$	3,348		$	(14,824	)

Net (loss) income per diluted share:
	(Loss) income from continuing operations, net	$	(0.02	)	$	0.01		$	(0.02	)
	Income (loss) from discontinued operations, net		-			0.00			(0.05	)
Net (loss) income per diluted share		$	(0.02	)	$	0.01		$	(0.07	)

⁽¹⁾

See page 10 for details.

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		SELECT INCOME STATEMENT DATA

(unaudited and in thousands)

		Three Months Ended
Rental Revenue:		March 31, 2021		March 31, 2020		December 31, 2020
	Property rentals	$	152,926	$	149,138	$	156,053
	Tenant reimbursements		12,069		14,049		13,852
	Straight-line rent adjustments		7,282		10,695		4,189
	Amortization of above and below-market leases, net		855		1,543		87
	Lease termination income		14		-		-
Total rental revenue		$	173,146	$	175,425	$	174,181

			Three Months Ended
Fee and Other Income:			March 31, 2021		March 31, 2020		December 31, 2020
	Asset management		$	3,486	$	3,521	$	3,538
	Property management			2,196		2,450		2,283
	Acquisition, disposition and leasing			-		-		43
	Other			988		359		514
	Total fee income			6,670		6,330		6,378
	Other (primarily parking income and tenant requested services,
		including overtime heating and cooling)		1,350		2,231		1,799
Total fee and other income			$	8,020	$	8,561	$	8,177

			Three Months Ended
General and Administrative:			March 31, 2021		March 31, 2020			December 31, 2020
	General and administrative expenses		$	13,452	$	14,233		$	16,106
	Mark-to-market of deferred compensation plan liabilities (offset by
		an increase (decrease) in the mark-to-market of plan assets,
		which is included in "interest and other income (loss), net")		912		(1,984	)		1,856
Total general and administrative			$	14,364	$	12,249		$	17,962

			Three Months Ended
Interest and Other Income (Loss), net:			March 31, 2021		March 31, 2020			December 31, 2020
	Interest income, net		$	390	$	988		$	274
	Mark-to-market of deferred compensation plan assets (offset by
		an increase (decrease) in the mark-to-market of plan liabilities,
		which is included in "general and administrative" expenses)		912		(1,984	)		1,856
Total interest and other income (loss), net			$	1,302	$	(996	)	$	2,130

		Three Months Ended
Interest and Debt Expense:		March 31, 2021		March 31, 2020		December 31, 2020
	Interest expense	$	32,420	$	34,301	$	33,468
	Amortization of deferred financing costs		2,319		2,318		2,320
Total interest and debt expense		$	34,739	$	36,619	$	35,788

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		FFO

(unaudited and in thousands, except share and per share amounts)

				Three Months Ended
				March 31, 2021			March 31, 2020			December 31, 2020
Reconciliation of net income (loss) to FFO and Core FFO:
	Net income (loss)			$	1,884		$	5,226		$	(12,615	)
	Real estate depreciation and amortization (including our share
		of unconsolidated joint ventures)			69,141			70,940			70,700
	Adjustments related to discontinued operations (including
		loss on sale of real estate)			-			690			12,766
	FFO ⁽¹⁾				71,025			76,856			70,851
	Less FFO attributable to noncontrolling interests in:
		Consolidated joint ventures			(15,074	)		(8,969	)		(13,167	)
		Consolidated real estate fund			(85	)		(23	)		159
	FFO attributable to Paramount Group Operating Partnership				55,866			67,864			57,843
	Less FFO attributable to noncontrolling interests in Operating Partnership				(4,992	)		(6,278	)		(5,004	)
	FFO attributable to common stockholders⁽¹⁾			$	50,874		$	61,586		$	52,839
	Per diluted share			$	0.23		$	0.27		$	0.24

	FFO			$	71,025		$	76,856		$	70,851
	Non-core items:
		Our share of earnings from 712 Fifth Avenue in excess of
			(or less than) distributions		(577	)		(388	)		(891	)
		Other, net			246			303			515
	Core FFO ⁽¹⁾				70,694			76,771			70,475
	Less Core FFO attributable to noncontrolling interests in:
		Consolidated joint ventures			(15,074	)		(8,969	)		(13,167	)
		Consolidated real estate fund			(85	)		(23	)		159
	Core FFO attributable to Paramount Group Operating Partnership				55,535			67,779			57,467
	Less Core FFO attributable to noncontrolling interests in Operating Partnership				(4,963	)		(6,270	)		(4,972	)
	Core FFO attributable to common stockholders ⁽¹⁾			$	50,572		$	61,509		$	52,495
	Per diluted share			$	0.23		$	0.27		$	0.24

Reconciliation of weighted average shares outstanding:
	Weighted average shares outstanding				218,666,005			227,769,213			218,989,711
	Effect of dilutive securities				50,920			35,963			40,406
	Denominator for FFO and Core FFO per diluted share				218,716,925			227,805,176			219,030,117

⁽¹⁾

See page 37 for our definition of this measure.

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		FAD

(unaudited and in thousands)

				Three Months Ended
				March 31, 2021			March 31, 2020			December 31, 2020
Reconciliation of Core FFO to FAD:
	Core FFO			$	70,694		$	76,771		$	70,475
	Add (subtract) adjustments to arrive at FAD:
		Straight-line rent adjustments (including our share
			of unconsolidated joint ventures)		(8,102	)		(11,804	)		(4,961	)
		Amortization of above and below-market leases, net (including
			our share of unconsolidated joint ventures)		(1,803	)		(2,832	)		(1,126	)
		Amortization of deferred financing costs (including our share
			of unconsolidated joint ventures)		2,642			2,630			2,659
		Amortization of stock-based compensation expense			5,486			5,397			5,098
		Expenditures to maintain assets			(1,956	)		(4,709	)		(5,246	)
		Second generation tenant improvements and leasing commissions			(8,241	)		(23,933	)		(19,731	)
		Adjustments related to discontinued operations			-			119			146
	FAD ⁽¹⁾				58,720			41,639			47,314
	Less FAD attributable to noncontrolling interests in:
		Consolidated joint ventures			(6,890	)		(2,773	)		216
		Consolidated real estate fund			(85	)		(23	)		159
	FAD attributable to Paramount Group Operating Partnership				51,745			38,843			47,689
	Less FAD attributable to noncontrolling interests in Operating Partnership				(4,624	)		(3,593	)		(4,126	)
	FAD attributable to common stockholders ^{(1) (2)}			$	47,121		$	35,250		$	43,563

	Dividends declared on common stock			$	15,327		$	22,246		$	15,318

⁽¹⁾	See page 37 for our definition of this measure.
⁽²⁾	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.

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		EBITDAre

(unaudited and in thousands)

				Three Months Ended
				March 31, 2021			March 31, 2020			December 31, 2020
Reconciliation of net income (loss) to EBITDAre and Adjusted EBITDAre:
	Net income (loss)			$	1,884		$	5,226		$	(12,615	)
	Add (subtract) adjustments to arrive at EBITDAre and Adjusted EBITDAre:
		Depreciation and amortization (including our share
			of unconsolidated joint ventures)		69,141			70,940			70,700
		Interest and debt expense (including our share
			of unconsolidated joint ventures)		40,096			42,121			41,229
		Income tax expense (including our share of
			unconsolidated joint ventures)		1,149			618			358
		Adjustments related to discontinued operations (including
			loss on sale of real estate)		-			690			12,765
	EBITDAre⁽¹⁾				112,270			119,595			112,437
	Less EBITDAre attributable to noncontrolling interests in:
		Consolidated joint ventures			(22,743	)		(15,793	)		(20,939	)
		Consolidated real estate fund			(88	)		(131	)		155
	PGRE's share of EBITDAre ⁽¹⁾			$	89,439		$	103,671		$	91,653



	EBITDAre			$	112,270		$	119,595		$	112,437
	Add (subtract) adjustments to arrive at Adjusted EBITDAre:
		Our share of earnings from 712 Fifth Avenue in excess of
			(or less than) distributions		(577	)		(388	)		(891	)
		Other, net			45			29			579
	Adjusted EBITDAre ⁽¹⁾				111,738			119,236			112,125
	Less Adjusted EBITDAre attributable to noncontrolling interests in:
		Consolidated joint ventures			(22,743	)		(15,793	)		(20,939	)
	PGRE's share of Adjusted EBITDAre ⁽¹⁾			$	88,995		$	103,443		$	91,186

⁽¹⁾	See page 37 for our definition of this measure.

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		NOI

(unaudited and in thousands)

				Three Months Ended
				March 31, 2021			March 31, 2020			December 31, 2020
Reconciliation of net income (loss) to NOI and Cash NOI:
	Net income (loss)			$	1,884		$	5,226		$	(12,615	)
	Add (subtract) adjustments to arrive at NOI and Cash NOI:
		Depreciation and amortization			58,305			58,427			59,168
		General and administrative			14,364			12,249			17,962
		Interest and debt expense			34,739			36,619			35,788
		Income tax expense			1,141			604			358
		NOI from unconsolidated joint ventures			10,326			13,392			11,928
		Loss from unconsolidated joint ventures			5,316			4,221			4,175
		Fee income			(6,670	)		(6,330	)		(6,378	)
		Interest and other (income) loss, net			(1,302	)		996			(2,130	)
		Adjustments related to discontinued operations (including
			loss on sale of real estate)		-			690			12,765
		Other, net			101			151			367
	NOI ⁽¹⁾				118,204			126,245			121,388
	Less NOI attributable to noncontrolling interests in:
		Consolidated joint ventures			(22,725	)		(15,691	)		(20,909	)
		Consolidated real estate fund			85			3			247
	PGRE's share of NOI⁽¹⁾			$	95,564		$	110,557		$	100,726

	NOI			$	118,204		$	126,245		$	121,388
	Less:
		Straight-line rent adjustments (including our share of
			unconsolidated joint ventures)		(8,102	)		(11,804	)		(4,961	)
		Amortization of above and below-market leases, net
			(including our share of unconsolidated joint ventures)		(1,803	)		(2,832	)		(1,126	)
		Adjustments related to discontinued operations			-			119			146
	Cash NOI⁽¹⁾				108,299			111,728			115,447
	Less Cash NOI attributable to noncontrolling interests in:
		Consolidated joint ventures			(18,941	)		(13,202	)		(18,095	)
		Consolidated real estate fund			85			3			247
	PGRE's share of Cash NOI ⁽¹⁾			$	89,443		$	98,529		$	97,599

⁽¹⁾	See page 37 for our definition of this measure.

- 14 -


		NOI

(unaudited and in thousands)

				Three Months Ended March 31, 2021
				Total			New York			San Francisco			Other
Reconciliation of net income (loss) to NOI and Cash NOI:
	Net income (loss)			$	1,884		$	2,273		$	10,920		$	(11,309	)
	Add (subtract) adjustments to arrive at NOI and Cash NOI:
		Depreciation and amortization			58,305			39,284			18,052			969
		General and administrative			14,364			-			-			14,364
		Interest and debt expense			34,739			21,259			12,353			1,127
		Income tax expense			1,141			-			4			1,137
		NOI from unconsolidated joint ventures			10,326			2,821			7,537			(32	)
		Loss (income) from unconsolidated joint ventures			5,316			(17	)		5,242			91
		Fee income			(6,670	)		-			-			(6,670	)
		Interest and other (income) loss, net			(1,302	)		14			(37	)		(1,279	)
		Other, net			101			-			-			101
	NOI ⁽¹⁾				118,204			65,634			54,071			(1,501	)
	Less NOI attributable to noncontrolling interests in:
		Consolidated joint ventures			(22,725	)		(2,593	)		(20,132	)		-
		Consolidated real estate fund			85			-			-			85
	PGRE's share of NOI for the three months ended March 31, 2021			$	95,564		$	63,041		$	33,939		$	(1,416	)
	PGRE's share of NOI for the three months ended March 31, 2020			$	110,557		$	75,492		$	34,439		$	626


	NOI			$	118,204		$	65,634		$	54,071		$	(1,501	)
	Add (subtract) adjustments to arrive at Cash NOI:
		Straight-line rent adjustments (including our share
			of unconsolidated joint ventures)		(8,102	)		(1,795	)		(6,397	)		90
		Amortization of above and below-market leases, net (including
			our share of unconsolidated joint ventures)		(1,803	)		267			(2,070	)		-
	Cash NOI⁽¹⁾				108,299			64,106			45,604			(1,411	)
	Less Cash NOI attributable to noncontrolling interests in:
		Consolidated joint ventures			(18,941	)		(2,485	)		(16,456	)		-
		Consolidated real estate fund			85			-			-			85
	PGRE's share of Cash NOI for the three months ended March 31, 2021			$	89,443		$	61,621		$	29,148		$	(1,326	)
	PGRE's share of Cash NOI for the three months ended March 31, 2020			$	98,529		$	69,470		$	28,233		$	826

⁽¹⁾

See page 37 for our definition of this measure.

- 15 -


		SAME STORE RESULTS

(unaudited and in thousands)

SAME STORE CASH NOI ⁽¹⁾			Three Months Ended March 31, 2021
			Total		New York		San Francisco		Other
	PGRE's share of Cash NOI for the three months ended March 31, 2021		$	89,443	$	61,621	$	29,148	$	(1,326	)
		Dispositions / Discontinued Operations		-		-		-		-
		Other, net		3,008		403		1,279		1,326
	PGRE's share of Same Store Cash NOI for the three months ended March 31, 2021		$	92,451	$	62,024	$	30,427	$	-

		Three Months Ended March 31, 2020
		Total			New York				San Francisco			Other
PGRE's share of Cash NOI for the three months ended March 31, 2020		$	98,529		$	69,470			$	28,233		$	826
	Dispositions / Discontinued Operations		(5,024	)		(2,694	)	⁽²⁾		-			(2,330	)	⁽³⁾
	Other, net		1,421			(76	)			(7	)		1,504
PGRE's share of Same Store Cash NOI for the three months ended March 31, 2020		$	94,926		$	66,700			$	28,226		$	-

	(Decrease) increase in PGRE's share of Same Store Cash NOI	$	(2,475	)	⁽⁴⁾	$	(4,676	)	⁽⁴⁾	$	2,201			$	-
	% (Decrease) increase		(2.6	%)	⁽⁴⁾		(7.0	%)	⁽⁴⁾		7.8	%

⁽¹⁾	See page 37 for our definition of this measure.
⁽²⁾	Represents Cash NOI attributable to the 10.0% sale of 1633 Broadway for the months in which it was not owned by us in both reporting periods.
⁽³⁾	Represents Cash NOI from discontinued operations (1899 Pennsylvania Avenue in Washington, D.C.).
⁽⁴⁾	Primarily due to the January 1, 2021 expiration of Barclays' 497,500 square foot lease at 1301 Avenue of the Americas.

- 16 -


		SAME STORE RESULTS

(unaudited and in thousands)

SAME STORE NOI ⁽¹⁾			Three Months Ended March 31, 2021
			Total		New York		San Francisco		Other
	PGRE's share of NOI for the three months ended March 31, 2021		$	95,564	$	63,041	$	33,939	$	(1,416	)
		Dispositions / Discontinued Operations		-		-		-		-
		Other, net		3,240		545		1,279		1,416
	PGRE's share of Same Store NOI for the three months ended March 31, 2021		$	98,804	$	63,586	$	35,218	$	-

		Three Months Ended March 31, 2020
		Total			New York				San Francisco			Other
PGRE's share of NOI for the three months ended March 31, 2020		$	110,557		$	75,492			$	34,439		$	626
	Dispositions / Discontinued Operations		(5,274	)		(3,063	)	⁽²⁾		-			(2,211	)	⁽³⁾
	Other, net		1,502			(76	)			(7	)		1,585
PGRE's share of Same Store NOI for the three months ended March 31, 2020		$	106,785		$	72,353			$	34,432		$	-

	(Decrease) increase in PGRE's share of Same Store NOI	$	(7,981	)	⁽⁴⁾	$	(8,767	)	⁽⁴⁾	$	786			$	-
	% (Decrease) increase		(7.5	%)	⁽⁴⁾		(12.1	%)	⁽⁴⁾		2.3	%

⁽¹⁾	See page 37 for our definition of this measure.
⁽²⁾	Represents NOI attributable to the 10.0% sale of 1633 Broadway for the months in which it was not owned by us in both reporting periods.
⁽³⁾	Represents NOI from discontinued operations (1899 Pennsylvania Avenue in Washington, D.C.).
⁽⁴⁾	Primarily due to the January 1, 2021 expiration of Barclays' 497,500 square foot lease at 1301 Avenue of the Americas.

- 17 -


		CONSOLIDATED JOINT VENTURES AND FUND – BALANCE SHEETS

(unaudited and in thousands)

		As of March 31, 2021
		Consolidated Joint Ventures								Consolidated Fund
		Total Consolidated								Residential
		Joint Ventures		1633 Broadway		One Market Plaza		300 Mission Street		Development Fund
PGRE Ownership				90.0%		49.0%		31.1%		7.4%
Assets:
	Real estate, net	$	3,458,220	$	1,785,337	$	1,183,220	$	489,663	$	-
	Cash and cash equivalents		165,736		70,033		64,750		30,953		2,624
	Restricted cash		1,383		78		1,305		-		-
	Investments in unconsolidated joint ventures		-		-		-		-		67,423
	Accounts and other receivables		5,855		4,488		993		374		124
	Deferred rent receivable		199,186		116,097		62,011		21,078		-
	Deferred charges, net		53,717		28,805		15,264		9,648		-
	Intangible assets, net		72,594		54,440		13,600		4,554		-
	Other assets		16,265		11,916		4,284		65		15,728
Total Assets		$	3,972,956	$	2,071,194	$	1,345,427	$	556,335	$	85,899

Liabilities:
	Notes and mortgages payable, net	$	2,470,209	$	1,241,369	$	971,976	$	256,864	$	-
	Accounts payable and accrued expenses		67,154		17,921		35,619		13,614		79
	Intangible liabilities, net		31,933		17,598		13,380		955		-
	Other liabilities		4,901		479		4,369		53		-
Total Liabilities			2,574,197		1,277,367		1,025,344		271,486		79

Equity:
	Paramount Group, Inc. equity		959,822		715,102		156,909		87,811		6,706
	Noncontrolling interests		438,937		78,725		163,174		197,038		79,114
Total Equity			1,398,759		793,827		320,083		284,849		85,820

Total Liabilities and Equity		$	3,972,956	$	2,071,194	$	1,345,427	$	556,335	$	85,899

- 18 -


		CONSOLIDATED JOINT VENTURES AND FUND – BALANCE SHEETS

(unaudited and in thousands)

		As of December 31, 2020
		Consolidated Joint Ventures										Consolidated Fund
		Total Consolidated										Residential
		Joint Ventures		1633 Broadway		One Market Plaza		300 Mission Street		Other ⁽¹⁾		Development Fund
PGRE Ownership				90.0%		49.0%		31.1%		24.4%		7.4%
Assets:
	Real estate, net	$	3,470,766	$	1,794,011	$	1,186,842	$	489,913	$	-	$	-
	Cash and cash equivalents		130,752		68,049		51,081		10,654		968		2,512
	Restricted cash		1,383		78		1,305		-		-		-
	Investments in unconsolidated joint ventures		-		-		-		-		-		67,505
	Accounts and other receivables		6,747		3,867		900		1,980		-		124
	Deferred rent receivable		192,401		115,270		57,801		19,330		-		-
	Deferred charges, net		55,156		28,977		16,261		9,918		-		-
	Intangible assets, net		76,545		56,588		14,728		5,229		-		-
	Other assets		5,806		451		5,044		310		1		15,690
Total Assets		$	3,939,556	$	2,067,291	$	1,333,962	$	537,334	$	969	$	85,831

Liabilities:
	Notes and mortgages payable, net	$	2,457,272	$	1,241,121	$	971,717	$	244,434	$	-	$	-
	Accounts payable and accrued expenses		51,513		18,310		24,239		8,931		33		77
	Intangible liabilities, net		33,566		18,339		14,176		1,051		-		-
	Other liabilities		4,486		67		4,348		3		68		-
Total Liabilities			2,546,837		1,277,837		1,014,480		254,419		101		77

Equity:
	Paramount Group, Inc. equity		955,558		711,049		156,614		87,165		730		6,737
	Noncontrolling interests		437,161		78,405		162,868		195,750		138		79,017
Total Equity			1,392,719		789,454		319,482		282,915		868		85,754

Total Liabilities and Equity		$	3,939,556	$	2,067,291	$	1,333,962	$	537,334	$	969	$	85,831

⁽¹⁾

Represents PGRESS Equity Holdings, LP.

- 19 -

CONSOLIDATED JOINT VENTURES AND FUND – OPERATING RESULTS

(unaudited and in thousands)

		Three Months Ended March 31, 2021
		Consolidated Joint Ventures												Consolidated Fund
		Total Consolidated												Residential
		Joint Ventures			1633 Broadway ⁽¹⁾			One Market Plaza			300 Mission Street			Development Fund
Total revenues		$	97,238		$	47,479		$	36,328		$	13,431		$	-
Total operating expenses			29,968			17,388			9,326			3,254			-
Net operating income ⁽²⁾			67,270			30,091			27,002			10,177			-
Depreciation and amortization			(28,285	)		(14,139	)		(10,144	)		(4,002	)		-
Interest and other income (loss), net			23			(14	)		34			3			148
Interest and debt expense			(21,986	)		(9,633	)		(10,085	)		(2,268	)		-
Loss from unconsolidated joint ventures			-			-			-			-			(93	)
Net income before income taxes			17,022			6,305			6,807			3,910			55
Income tax expense			(1	)		-			(1	)		-			(2	)
Net income		$	17,021		$	6,305		$	6,806		$	3,910		$	53

PGRE's share
Ownership		Total			90.0%			49.0%			31.1%			7.4%
	Net income (loss)	$	10,230		$	5,680		$	3,335		$	1,215		$	(32	)
	Add: Management fee income		1,063			411			194			458			-
	PGRE's share of net income (loss)		11,293			6,091			3,529			1,673			(32	)
	Add: Real estate depreciation and amortization		18,939			12,724			4,970			1,245			-
	FFO/Core FFO ⁽²⁾	$	30,232		$	18,815		$	8,499		$	2,918		$	(32	)

Noncontrolling interests' share
Ownership		Total			10.0%			51.0%			68.9%			92.6%
	Net income	$	6,791		$	625		$	3,471		$	2,695		$	85
	Less: Management fee expense		(1,063	)		(411	)		(194	)		(458	)		-
	Net income attributable to noncontrolling interests		5,728			214			3,277			2,237			85
	Add: Real estate depreciation and amortization		9,346			1,415			5,174			2,757			-
	FFO/Core FFO ⁽²⁾	$	15,074		$	1,629		$	8,451		$	4,994		$	85

⁽¹⁾	On May 27, 2020, we sold a 10.0% interest in 1633 Broadway.
⁽²⁾	See page 37 for our definition of these measures.

- 20 -

CONSOLIDATED JOINT VENTURES AND FUND – OPERATING RESULTS

(unaudited and in thousands)

		Three Months Ended March 31, 2020
		Consolidated Joint Ventures									Consolidated Fund
		Total Consolidated									Residential
		Joint Ventures			One Market Plaza			300 Mission Street			Development Fund
Total revenues		$	43,052		$	35,492		$	7,560		$	-
Total operating expenses			12,680			9,473			3,207			2
Net operating income (loss) ⁽¹⁾			30,372			26,019			4,353			(2	)
Depreciation and amortization			(13,556	)		(10,535	)		(3,021	)		-
Interest and other income, net			187			152			35			125
Interest and debt expense			(12,562	)		(10,194	)		(2,368	)		(141	)
Loss from unconsolidated joint ventures			-			-			-			(1	)
Net income (loss) before income taxes			4,441			5,442			(1,001	)		(19	)
Income tax benefit (expense)			10			(1	)		11			(2	)
Net income (loss)		$	4,451		$	5,441		$	(990	)	$	(21	)

PGRE's share
Ownership		Total			49.0%			31.1%			7.4%
	Net income (loss)	$	2,335		$	2,666		$	(331	)	$	(44	)
	Add: Management fee income		602			177			425			-
	PGRE's share of net income (loss)		2,937			2,843			94			(44	)
	Add: Real estate depreciation and amortization		6,101			5,162			939			-
	FFO/Core FFO ⁽¹⁾	$	9,038		$	8,005		$	1,033		$	(44	)

Noncontrolling interests' share
Ownership		Total			51.0%			68.9%			92.6%
	Net income (loss)	$	2,116		$	2,775		$	(659	)	$	23
	Less: Management fee expense		(602	)		(177	)		(425	)		-
	Net income (loss) attributable to noncontrolling interests		1,514			2,598			(1,084	)		23
	Add: Real estate depreciation and amortization		7,455			5,373			2,082			-
	FFO/Core FFO ⁽¹⁾	$	8,969		$	7,971		$	998		$	23

⁽¹⁾	See page 37 for our definition of these measures.

- 21 -


		UNCONSOLIDATED JOINT VENTURES - BALANCE SHEETS

(unaudited and in thousands)

		As of March 31, 2021
				712 Fifth			Market		55 Second		111 Sutter
		Total		Avenue			Center		Street		Street		Other ⁽¹⁾

PGRE Ownership				50.0%			67.0%		44.1%		49.0%		Various
Assets:
	Real estate, net	$	2,690,006	$	210,264		$	654,294	$	376,460	$	214,256	$	1,234,732
	Cash and cash equivalents		87,834		17,519			29,674		12,008		6,173		22,460
	Restricted cash		52,110		1,727			-		-		2,048		48,335
	Accounts and other receivables		1,397		455			397		367		25		153
	Deferred rent receivable		26,001		16,754			4,286		2,077		2,337		547
	Deferred charges, net		11,250		8,401			1,067		439		1,343		-
	Intangible assets, net		96,775		-			36,595		21,871		5,370		32,939
	Other assets		8,099		3,514			138		58		31		4,358
Total Assets		$	2,973,472	$	258,634		$	726,451	$	413,280	$	231,583	$	1,343,524

Liabilities:
	Notes and mortgages payable, net	$	1,834,074	$	297,467		$	403,273	$	186,631	$	148,694	$	798,009
	Accounts payable and accrued expenses		65,863		6,750			13,958		5,128		3,734		36,293
	Intangible liabilities, net		24,608		-			7,505		14,247		2,856		-
	Other liabilities		16,640		262			14,436		109		238		1,595
Total Liabilities			1,941,185		304,479			439,172		206,115		155,522		835,897


Total Equity			1,032,287		(45,845	)		287,279		207,165		76,061		507,627

Total Liabilities and Equity		$	2,973,472	$	258,634		$	726,451	$	413,280	$	231,583	$	1,343,524

⁽¹⁾

Represents 60 Wall Street, Oder-Center, Germany and One Steuart Lane.

- 22 -


		UNCONSOLIDATED JOINT VENTURES - BALANCE SHEETS

(unaudited and in thousands)

		As of December 31, 2020
				712 Fifth			Market		55 Second		111 Sutter
		Total		Avenue			Center		Street		Street		Other ⁽¹⁾

PGRE Ownership				50.0%			67.0%		44.1%		49.0%		Various
Assets:
	Real estate, net	$	2,674,858	$	211,635		$	658,112	$	378,946	$	214,774	$	1,211,391
	Cash and cash equivalents		83,093		22,860			23,984		8,817		3,851		23,581
	Restricted cash		37,056		1,727			-		-		1,295		34,034
	Accounts and other receivables		4,074		1,191			1,999		501		230		153
	Deferred rent receivable		24,518		15,863			3,811		1,964		2,218		662
	Deferred charges, net		11,383		8,719			805		463		1,396		-
	Intangible assets, net		110,307		-			40,444		23,696		6,037		40,130
	Other assets		5,786		174			155		2,083		107		3,267
Total Assets		$	2,951,075	$	262,169		$	729,310	$	416,470	$	229,908	$	1,313,218

Liabilities:
	Notes and mortgages payable, net	$	1,801,084	$	297,364		$	402,057	$	186,592	$	146,693	$	768,378
	Accounts payable and accrued expenses		64,710		9,227			10,995		5,909		2,745		35,834
	Intangible liabilities, net		26,772		-			8,345		15,318		3,109		-
	Other liabilities		22,865		269			20,764		108		304		1,420
Total Liabilities			1,915,431		306,860			442,161		207,927		152,851		805,632


Total Equity			1,035,644		(44,691	)		287,149		208,543		77,057		507,586

Total Liabilities and Equity		$	2,951,075	$	262,169		$	729,310	$	416,470	$	229,908	$	1,313,218

⁽¹⁾

Represents 60 Wall Street, Oder-Center, Germany and One Steuart Lane.

- 23 -


		UNCONSOLIDATED JOINT VENTURES - OPERATING RESULTS

(unaudited and in thousands)

		Three Months Ended March 31, 2021
					712 Fifth			Market			55 Second			111 Sutter
		Total			Avenue			Center			Street			Street			Other ⁽¹⁾
Total revenues		$	57,285		$	10,140		$	12,314		$	8,258		$	4,326		$	22,247
Total operating expenses			25,110			5,880			6,441			2,956			1,713			8,120
Net operating income ⁽²⁾			32,175			4,260			5,873			5,302			2,613			14,127
Depreciation and amortization			(27,453	)		(2,768	)		(8,663	)		(4,813	)		(2,085	)		(9,124	)
Interest and other loss, net			(33	)		(1	)		(21	)		(3	)		(5	)		(3	)
Interest and debt expense			(13,740	)		(2,645	)		(3,347	)		(1,857	)		(1,519	)		(4,372	)
Net (loss) income before income taxes			(9,051	)		(1,154	)		(6,158	)		(1,371	)		(996	)		628
Income tax expense			(16	)		-			(3	)		(8	)		(3	)		(2	)
Net (loss) income		$	(9,067	)	$	(1,154	)	$	(6,161	)	$	(1,379	)	$	(999	)	$	626

PGRE's share
Ownership		Total			50.0%			67.0%			44.1%			49.0%			Various
	Net loss	$	(5,851	)	$	(577	)	$	(4,130	)	$	(620	)	$	(490	)	$	(34	)
	Less: Step-up basis adjustment		(42	)		-			-			(2	)		-			(40	)
	Add: Earnings from 712 Fifth Avenue less than distributions		577			577			-			-			-			-
	PGRE's share of net loss		(5,316	)		-			(4,130	)		(622	)		(490	)		(74	)
	Add: Real estate depreciation and amortization		10,836			1,384			5,804			2,124			1,022			502
	FFO ⁽²⁾		5,520			1,384			1,674			1,502			532			428
	Less: Earnings from 712 Fifth Avenue less than distributions		(577	)		(577	)		-			-			-			-
	Core FFO⁽²⁾	$	4,943		$	807		$	1,674		$	1,502		$	532		$	428

Joint Venture Partners' share
Ownership		Total			50.0%			33.0%			55.9%			51.0%			Various
	Net (loss) income	$	(3,216	)	$	(577	)	$	(2,031	)	$	(759	)	$	(509	)	$	660
	Add: Real estate depreciation and amortization		16,659			1,384			2,859			2,691			1,063			8,662
	FFO/Core FFO ⁽²⁾	$	13,443		$	807		$	828		$	1,932		$	554		$	9,322

⁽¹⁾	Represents 60 Wall Street, Oder-Center, Germany and One Steuart Lane.
⁽²⁾	See page 37 for our definition of these measures.

- 24 -


		UNCONSOLIDATED JOINT VENTURES - OPERATING RESULTS

(unaudited and in thousands)

		Three Months Ended March 31, 2020
					712 Fifth			Market			55 Second			111 Sutter
		Total			Avenue			Center			Street			Street			Other ⁽¹⁾
Total revenues		$	63,194		$	10,908		$	16,348		$	8,529		$	5,292		$	22,117
Total operating expenses			25,940			6,411			6,675			3,391			1,906			7,557
Net operating income ⁽²⁾			37,254			4,497			9,673			5,138			3,386			14,560
Depreciation and amortization			(30,182	)		(2,665	)		(10,572	)		(4,762	)		(3,055	)		(9,128	)
Interest and other income (loss), net			77			66			(8	)		-			(3	)		22
Interest and debt expense			(15,909	)		(2,673	)		(3,349	)		(1,857	)		(1,567	)		(6,463	)
Net loss before income taxes			(8,760	)		(775	)		(4,256	)		(1,481	)		(1,239	)		(1,009	)
Income tax expense			(39	)		-			(4	)		(15	)		(6	)		(14	)
Net loss		$	(8,799	)	$	(775	)	$	(4,260	)	$	(1,496	)	$	(1,245	)	$	(1,023	)

PGRE's share
Ownership		Total			50.0%			67.0%			44.1%			49.0%			Various
	Net loss	$	(4,571	)	$	(388	)	$	(2,854	)	$	(684	)	$	(610	)	$	(35	)
	Less: Step-up basis adjustment		(38	)		-			-			-			-			(38	)
	Add: Earnings from 712 Fifth Avenue less than distributions		388			388			-			-			-			-
	PGRE's share of net loss		(4,221	)		-			(2,854	)		(684	)		(610	)		(73	)
	Add: Real estate depreciation and amortization		12,513			1,333			7,083			2,100			1,497			500
	FFO ⁽²⁾		8,292			1,333			4,229			1,416			887			427
	Less: Earnings from 712 Fifth Avenue less than distributions		(388	)		(388	)		-			-			-			-
	Core FFO⁽²⁾	$	7,904		$	945		$	4,229		$	1,416		$	887		$	427

Joint Venture Partners' share
Ownership		Total			50.0%			33.0%			55.9%			51.0%			Various
	Net loss	$	(4,228	)	$	(387	)	$	(1,406	)	$	(812	)	$	(635	)	$	(988	)
	Add: Real estate depreciation and amortization		17,707			1,332			3,489			2,662			1,558			8,666
	FFO/Core FFO ⁽²⁾	$	13,479		$	945		$	2,083		$	1,850		$	923		$	7,678

⁽¹⁾	Represents 60 Wall Street, Oder-Center, Germany and One Steuart Lane.
⁽²⁾	See page 37 for our definition of these measures.

- 25 -


		CAPITAL STRUCTURE

(unaudited and in thousands, except share, unit and per share amounts)

			As of March 31, 2021
Debt:
	Consolidated debt:
		Notes and mortgages payable ⁽¹⁾	$	3,831,864
		$1.0 billion Revolving Credit Facility		-
				3,831,864
	Less:
		Noncontrolling interests' share of consolidated debt ⁽²⁾		(799,217	)
	Add:
		PGRE's share of unconsolidated joint venture debt ⁽³⁾		609,249
	PGRE's Share of Total Debt ⁽⁴⁾			3,641,896

		Shares / Units		Share Price as of
Equity:		Outstanding		March 31, 2021
	Common stock		218,950,596	$	10.13		2,217,970
	Operating Partnership units		21,694,009		10.13		219,760
	Total equity		240,644,605		10.13		2,437,730


Total Market Capitalization						$	6,079,626

⁽¹⁾	Represents contractual amount due pursuant to the respective debt agreements.
⁽²⁾	Represents noncontrolling interests' share of debt of 1633 Broadway, One Market Plaza and 300 Mission Street.
⁽³⁾	Represents our share of debt of 712 Fifth Avenue, Market Center, 55 Second Street, 111 Sutter Street, 60 Wall Street and Oder-Center, Germany.
⁽⁴⁾	See page 37 for our definition of this measure.

- 26 -

DEBT ANALYSIS

(unaudited and in thousands)

		Total Debt						Fixed Rate Debt						Variable Rate Debt
Consolidated Debt:		Amount			Rate			Amount			Rate			Amount			Rate
	1633 Broadway	$	1,250,000			2.99	%	$	1,250,000			2.99	%	$	-			-
	1301 Avenue of the Americas		850,000			2.59	%		500,000			3.05	%		350,000			1.93	%
	31 West 52nd Street		500,000			3.80	%		500,000			3.80	%		-			-
	One Market Plaza		975,000			4.03	%		975,000			4.03	%		-			-
	300 Mission Street		256,864			3.65	%		256,864			3.65	%		-			-
	Revolving Credit Facility		-			-			-			-			-			-
Total consolidated debt			3,831,864			3.32	%		3,481,864			3.46	%		350,000			1.93	%
Noncontrolling interests' share			(799,217	)		3.78	%		(799,217	)		3.78	%		-			-
PGRE's share of consolidated debt		$	3,032,647			3.19	%	$	2,682,647			3.36	%	$	350,000			1.93	%

Unconsolidated Joint Venture Debt:
	712 Fifth Avenue	$	300,000			3.39	%	$	300,000			3.39	%	$	-			-
	Market Center		406,754			3.05	%		402,000			3.07	%		4,754			1.62	%
	55 Second Street		187,500			3.88	%		187,500			3.88	%		-			-
	111 Sutter Street		149,900			3.65	%		-			-			149,900			3.65	%
	60 Wall Street		575,000			2.56	%		-			-			575,000			2.56	%
	Oder-Center, Germany		18,905			4.62	%		18,905			4.62	%		-			-
Total unconsolidated debt			1,638,059			3.11	%		908,405			3.37	%		729,654			2.77	%
Joint venture partners' share			(1,028,810	)		2.99	%		(404,600	)		3.46	%		(624,210	)		2.69	%
PGRE's share of unconsolidated debt		$	609,249			3.30	%	$	503,805			3.30	%	$	105,444			3.29	%

PGRE's share of Total Debt ⁽¹⁾		$	3,641,896			3.21	%	$	3,186,452			3.35	%	$	455,444			2.24	%

Revolving Credit Facility Covenants: ⁽²⁾		Required	Actual			Debt Composition (at PGRE's share):		Amount		%
	Total Debt / Total Assets	Less than 60%		40.5	%	Fixed rate debt:
	Secured Debt / Total Assets	Less than 50%		43.1	%		Consolidated fixed rate debt	$	2,682,647
	Fixed Charge Coverage	Greater than 1.5x	3.45x				Unconsolidated fixed rate debt		503,805
	Unsecured Debt / Unencumbered Assets	Less than 60%		0.0	%		PGRE's share of fixed rate debt		3,186,452		87.5	%
	Unencumbered Interest Coverage	Greater than 1.75x	31.77x			Variable rate debt:
							Consolidated variable rate debt		350,000
							Unconsolidated variable rate debt		105,444
							PGRE's share of variable rate debt		455,444		12.5	%

							PGRE's share of Total Debt ⁽¹⁾	$	3,641,896		100.0	%

⁽¹⁾	See page 37 for our definition of this measure.
⁽²⁾	This section presents ratios as of March 31, 2021 in accordance with the terms of our revolving credit facility agreement, which has been filed with the SEC. We are not presenting these ratios and the related calculations for any other purpose or for any other period, and are not intending for these measures to otherwise provide information to investors about our financial condition or results of operations. Investors should not rely on these measures other than for purposes of considering our compliance with the revolving credit facility.

- 27 -

DEBT MATURITIES

(unaudited and in thousands)

Consolidated Debt:		2021				2022			2023			2024			2025			Thereafter			Total
	1301 Avenue of the Americas	$	850,000		⁽¹⁾	$	-		$	-		$	-		$	-		$	-		$	850,000
	300 Mission Street		-				-			256,864			-			-			-			256,864
	One Market Plaza		-				-			-			975,000			-			-			975,000
	1633 Broadway		-				-			-			-			-			1,250,000			1,250,000
	31 West 52nd Street		-				-			-			-			-			500,000			500,000
	Revolving Credit Facility		-				-			-			-			-			-			-
Total consolidated debt			850,000				-			256,864			975,000			-			1,750,000			3,831,864
Noncontrolling interests' share			-				-			(176,979	)		(497,250	)		-			(124,988	)		(799,217	)
PGRE's share of consolidated debt		$	850,000			$	-		$	79,885		$	477,750		$	-		$	1,625,012		$	3,032,647


Unconsolidated Joint Venture Debt:
	60 Wall Street	$	-			$	575,000		$	-		$	-		$	-		$	-		$	575,000
	Oder-Center, Germany		-				18,905			-			-			-			-			18,905
	111 Sutter Street		-				-			149,900			-			-			-			149,900
	Market Center		-				-			-			-			406,754			-			406,754
	712 Fifth Avenue		-				-			-			-			-			300,000			300,000
	55 Second Street		-				-			-			-			-			187,500			187,500
Total unconsolidated debt			-				593,905			149,900			-			406,754			487,500			1,638,059
Joint venture partners' share			-				(563,301	)		(76,449	)		-			(134,229	)		(254,831	)		(1,028,810	)
PGRE's share of unconsolidated debt		$	-			$	30,604		$	73,451		$	-		$	272,525		$	232,669		$	609,249



PGRE's Share of Total Debt ⁽²⁾		$	850,000			$	30,604		$	153,336		$	477,750		$	272,525		$	1,857,681		$	3,641,896

Weighted average rate			2.59	%			2.68	%		3.65	%		4.03	%		3.05	%		3.28	%		3.21	%

% of debt maturing			23.3	%			0.8	%		4.2	%		13.1	%		7.5	%		51.1	%		100.0	%

⁽¹⁾	This debt matures in November 2021. We are currently exploring various alternatives to refinance this debt.
⁽²⁾	See page 37 for our definition of this measure.

- 28 -




		PORTFOLIO SUMMARY

(unaudited and in thousands, except square feet and per square foot amounts)

		Paramount			Number of		Square		%			%			Annualized Rent ⁽¹⁾
Property	Submarket	Ownership			Buildings		Feet		Leased ⁽¹⁾			Occupied ⁽¹⁾			Amount		Per Square Foot ⁽²⁾

As of March 31, 2021
New York:
1633 Broadway	West Side		90.0	%		1		2,499,105		98.3	%		98.3	%	$	187,713	$	79.12
1301 Avenue of the Americas	Sixth Avenue / Rock Center		100.0	%		1		1,758,761		71.1	%		71.1	%		107,567		86.17
1325 Avenue of the Americas	Sixth Avenue / Rock Center		100.0	%		1		811,104		91.3	%		91.3	%		50,063		69.05
31 West 52nd Street	Sixth Avenue / Rock Center		100.0	%		1		763,172		99.3	%		98.2	%		71,188		92.44
900 Third Avenue	East Side		100.0	%		1		591,533		79.7	%		79.7	%		34,702		73.67
712 Fifth Avenue	Madison / Fifth Avenue		50.0	%		1		543,411		69.0	%		65.7	%		41,341		115.76
60 Wall Street	Downtown		5.0	%		1		1,625,483		100.0	%		100.0	%		73,600		45.28	⁽³⁾
Subtotal / Weighted average						7		8,592,569		89.4	%		89.0	%		566,174		74.74
PGRE's share						7		6,526,932		87.3	%		87.1	%		456,821		81.56

San Francisco:
One Market Plaza	South Financial District		49.0	%		2		1,603,782		93.3	%		93.3	%		148,965		99.39
Market Center	South Financial District		67.0	%		2		745,036		84.3	%		84.0	%		54,869		87.59
300 Mission Street	South Financial District		31.1	%		1		660,702		99.1	%		99.1	%		55,666		85.21
One Front Street	North Financial District		100.0	%		1		644,555		99.9	%		98.8	%		53,609		84.26
55 Second Street	South Financial District		44.1	%		1		376,669		96.3	%		96.3	%		29,110		80.30
111 Sutter Street	North Financial District		49.0	%		1		277,724		59.4	%		59.4	%		13,137		80.79
Subtotal / Weighted average						8		4,308,468		91.7	%		91.5	%		355,356		90.20
PGRE's share						8		2,437,256		92.0	%		91.7	%		199,951		89.54

Total / Weighted average						15		12,901,037		90.1	%		89.9	%	$	921,530	$	80.09
PGRE's share						15		8,964,188		88.6	%		88.3	%	$	656,772	$	83.88

⁽¹⁾	See page 37 for our definition of this measure.
⁽²⁾	Represents office and retail space only.
⁽³⁾	Represents "triple-net" rent.

- 29 -


		SAME STORE LEASED OCCUPANCY

(unaudited)

				As of March 31, 2021						As of December 31, 2020						Change in
	Paramount						Same Store						Same Store			Same Store
Property	Ownership			Leased % ⁽¹⁾			Leased % ⁽¹⁾			Leased % ⁽¹⁾			Leased % ⁽¹⁾			Leased %


New York:
1633 Broadway		90.0	%		98.3	%		98.3	%		98.3	%		98.3	%		-	%
1301 Avenue of the Americas		100.0	%		71.1	%		71.1	%		99.0	%		99.0	%		(27.9	%)	⁽²⁾
1325 Avenue of the Americas		100.0	%		91.3	%		91.3	%		91.8	%		91.8	%		(0.5	%)
31 West 52nd Street		100.0	%		99.3	%		99.3	%		99.3	%		99.3	%		-	%
900 Third Avenue		100.0	%		79.7	%		79.7	%		80.6	%		80.6	%		(0.9	%)
712 Fifth Avenue		50.0	%		69.0	%		69.0	%		70.8	%		70.8	%		(1.8	%)
60 Wall Street		5.0	%		100.0	%		100.0	%		100.0	%		100.0	%		-	%
Weighted average					89.4	%		89.4	%		95.3	%		95.3	%		(5.9	%)	⁽²⁾
PGRE's share					87.3	%		87.3	%		95.1	%		95.1	%		(7.8	%)	⁽²⁾

San Francisco:
One Market Plaza		49.0	%		93.3	%		93.3	%		97.5	%		97.5	%		(4.2	%)
Market Center		67.0	%		84.3	%		84.3	%		90.2	%		90.2	%		(5.9	%)
300 Mission Street		31.1	%		99.1	%		99.1	%		99.1	%		99.1	%		-	%
One Front Street		100.0	%		99.9	%		99.9	%		100.0	%		100.0	%		(0.1	%)
55 Second Street		44.1	%		96.3	%		96.3	%		95.7	%		95.7	%		0.6	%
111 Sutter Street		49.0	%		59.4	%		59.4	%		79.6	%		79.6	%		(20.2	%)
Weighted average					91.7	%		91.7	%		95.6	%		95.6	%		(3.9	%)
PGRE's share					92.0	%		92.0	%		95.7	%		95.7	%		(3.7	%)

Weighted average					90.1	%		90.1	%		95.4	%		95.4	%		(5.3	%)	⁽²⁾
PGRE's share					88.6	%		88.6	%		95.2	%		95.2	%		(6.6	%)	⁽²⁾

⁽¹⁾	See page 37 for our definition of this measure.
⁽²⁾	Primarily due to the January 1, 2021 expiration of Barclays' 497,500 square foot lease at 1301 Avenue of the Americas.

- 30 -



		TOP TENANTS AND INDUSTRY DIVERSIFICATION

(unaudited and in thousands, except square feet and per square foot amounts)

									PGRE's Share of
						Total			Total						Annualized Rent ⁽¹⁾				% of
				Lease		Square Feet			Square Feet			% of Total					Per Square		Annualized
Top 10 Tenants:			Property	Expiration		Occupied			Occupied			Square Feet			Amount		Foot		Rent
As of March 31, 2021
	First Republic Bank		One Front Street	Jun-2025	⁽²⁾		350,340	⁽²⁾		350,340	⁽²⁾		3.9	%		29,233		83.44		4.5	%
	Clifford Chance LLP		31 West 52nd Street	Jun-2024			328,992			328,992			3.7	%		28,941		87.97		4.4	%
	Allianz Global Investors, LP		1633 Broadway	Jan-2031			320,911			288,823			3.2	%		28,122		97.37		4.3	%
	Credit Agricole Corporate &
		Investment Bank	1301 Avenue of the Americas	Feb-2023			312,679			312,679			3.5	%		27,616		88.32		4.2	%
	Norton Rose Fulbright		1301 Avenue of the Americas	Sep-2034	⁽³⁾		320,325	⁽³⁾		320,325	⁽³⁾		3.6	%		27,304		85.24		4.2	%
	Morgan Stanley & Company		1633 Broadway	Mar-2032			260,829			234,749			2.6	%		18,140		77.27		2.8	%
	WMG Acquisition Corp.
		(Warner Music Group)	1633 Broadway	Jul-2029			293,888			264,502			3.0	%		17,648		66.72		2.7	%
	Showtime Networks, Inc.		1633 Broadway	Jan-2026			261,196			235,079			2.6	%		16,845		71.66		2.6	%
	Google, Inc.		One Market Plaza	Apr-2025			342,211			167,683			1.9	%		15,089		89.99		2.3	%
	Uber Technologies, Inc.		Market Center	Jul-2023			236,398			158,387			1.8	%		13,866		87.55		2.1	%

		PGRE's Share of
		Square Feet		% of Occupied			Annualized		% of
Industry Diversification:		Occupied		Square Feet			Rent ⁽¹⁾		Annualized Rent
As of March 31, 2021
	Legal Services		1,734,851		21.9	%	$	147,498		22.5	%
	Technology and Media		1,727,432		21.8	%		138,156		21.0	%
	Financial Services, all others		1,245,926		15.7	%		113,753		17.3	%
	Financial Services - Commercial and Investment Banking		1,373,185		17.3	%		111,246		16.9	%
	Insurance		448,762		5.7	%		41,824		6.4	%
	Retail		128,110		1.6	%		13,872		2.1	%
	Travel & Leisure		192,856		2.4	%		13,746		2.1	%
	Real Estate		133,570		1.7	%		11,249		1.7	%
	Consumer Products		120,545		1.5	%		9,906		1.5	%
	Other		811,605		10.4	%		55,522		8.5	%

⁽¹⁾	See page 37 for our definition of this measure.
⁽²⁾	76,999 and 22,690 of the square feet leased expire on December 31, 2029 and December 31, 2030, respectively.
⁽³⁾	116,462 of the square feet leased expires on March 31, 2032.

- 31 -


		LEASING ACTIVITY ⁽¹⁾

(unaudited)

	Total				New York				San Francisco

Three Months Ended March 31, 2021

Total square feet leased		188,641				155,956		⁽²⁾		32,685

PGRE's share of total square feet leased:		19,655				-				19,655
Initial rent ⁽³⁾	$	76.08			$	-			$	76.08
Weighted average lease term (in years)		3.9				-				3.9
Tenant improvements and leasing commissions:
Per square foot	$	16.29			$	-			$	16.29
Per square foot per annum	$	4.17			$	-			$	4.17
Percentage of initial rent		5.5	%			-	%			5.5	%
Rent concessions:
Average free rent period (in months)		2.0				-				2.0
Average free rent period per annum (in months)		0.5				-				0.5

Second generation space: ⁽³⁾
Square feet		18,211				-				18,211
Cash basis:
Initial rent ⁽³⁾	$	75.69			$	-			$	75.69
Prior escalated rent ⁽³⁾	$	82.82			$	-			$	82.82
Percentage decrease		(8.6	%)	⁽⁴⁾		-	%			(8.6	%)	⁽⁴⁾
GAAP basis:
Straight-line rent ⁽³⁾	$	80.22			$	-			$	80.22
Prior straight-line rent ⁽³⁾	$	95.44			$	-			$	95.44
Percentage decrease		(15.9	%)	⁽⁴⁾		-	%			(15.9	%)	⁽⁴⁾

⁽¹⁾	The leasing statistics, except for square feet leased, represent office space only.
⁽²⁾	Represents the square feet that was leased to the Gershwin Theatre at 1633 Broadway for a 20-year term.
⁽³⁾	See page 37 for our definition of this measure.
⁽⁴⁾	Driven by a short-term (18 month) above-market 13,914 square foot lease renewal.

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		LEASE EXPIRATIONS – TOTAL PORTFOLIO

(unaudited and in thousands, except square feet and per square foot amounts)

		Total		PGRE's Share of
Year of		Square Feet		Square Feet		Annualized Rent ⁽¹⁾				% of
Lease Expiration ⁽²⁾		of Expiring Leases		of Expiring Leases		Amount		Per Square Foot ⁽³⁾		Annualized Rent

	Month to Month		19,816		12,626	$	1,072	$	60.93		0.2	%

	2Q 2021		197,934		190,400		15,227		79.88		2.3	%
	3Q 2021		107,887		81,648		6,706		83.04		1.0	%
	4Q 2021		91,728		78,470		4,315		73.33		0.6	%
	Total 2021		397,549		350,518		26,248		79.71		3.9	%

	1Q 2022		280,695		139,852		12,503		89.57		1.9	%
	Remaining 2022		1,855,309		215,175		16,541		76.22		2.5	%
	Total 2022		2,136,004		355,027		29,044		81.45		4.4	%
	2023		911,736		761,453		62,221		84.70		9.4	%
	2024		785,415		697,567		59,261		85.02		8.9	%
	2025		1,380,966		871,751		74,157		85.00		11.2	%
	2026		1,415,326		985,601		85,819		85.00		12.9	%
	2027		202,707		139,594		12,584		90.09		1.9	%
	2028		257,836		210,598		17,483		83.51		2.6	%
	2029		578,253		515,191		40,263		78.57		6.1	%
	2030		607,964		511,483		44,891		87.81		6.8	%
	Thereafter		2,936,388		2,532,544		211,668		85.75		31.7	%

⁽¹⁾	See page 37 for our definition of this measure.
⁽²⁾	Leases that expire on the last day of the quarter are treated as occupied and are reflected as expiring space in the following quarter.
⁽³⁾	Represents office and retail space only.

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		LEASE EXPIRATIONS – NEW YORK

(unaudited and in thousands, except square feet and per square foot amounts)

		Total		PGRE's Share of
Year of		Square Feet		Square Feet		Annualized Rent ⁽¹⁾				% of
Lease Expiration ⁽²⁾		of Expiring Leases		of Expiring Leases		Amount		Per Square Foot ⁽³⁾		Annualized Rent

	Month to Month		4,739		4,231	$	548	$	68.50		0.1	%

	2Q 2021		189,942		185,114		14,762		79.73		3.2	%
	3Q 2021		54,840		49,842		3,951		79.81		0.9	%
	4Q 2021		85,269		74,142		3,926		71.64		0.8	%
	Total 2021		330,051		309,098		22,639		78.50		4.9	%

	1Q 2022		52,385		45,306		4,369		96.44		0.9	%
	Remaining 2022		1,680,003		121,870		7,472		60.32		1.7	%
	Total 2022		1,732,388		167,176		11,841		70.13		2.6	%
	2023		531,018		517,433		40,209		81.59		8.7	%
	2024		584,861		568,017		47,577		83.88		10.3	%
	2025		299,107		241,876		21,617		89.34		4.7	%
	2026		704,695		646,145		53,759		80.02		11.7	%
	2027		85,378		79,854		6,932		86.80		1.5	%
	2028		147,554		127,134		10,503		83.21		2.3	%
	2029		537,064		494,320		38,527		78.37		8.4	%
	2030		403,756		393,040		33,732		85.87		7.3	%
	Thereafter		2,317,511		2,152,631		173,496		83.00		37.5	%

⁽¹⁾	See page 37 for our definition of this measure.
⁽²⁾	Leases that expire on the last day of the quarter are treated as occupied and are reflected as expiring space in the following quarter.
⁽³⁾	Represents office and retail space only.

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		LEASE EXPIRATIONS – SAN FRANCISCO

(unaudited and in thousands, except square feet and per square foot amounts)

		Total		PGRE's Share of
Year of		Square Feet		Square Feet		Annualized Rent ⁽¹⁾				% of
Lease Expiration ⁽²⁾		of Expiring Leases		of Expiring Leases		Amount		Per Square Foot ⁽³⁾		Annualized Rent

	Month to Month		15,077		8,395	$	524	$	55.36		0.3	%

	2Q 2021		7,992		5,286		465		85.25		0.2	%
	3Q 2021		53,047		31,806		2,755		88.15		1.4	%
	4Q 2021		6,459		4,328		389		89.94		0.2	%
	Total 2021		67,498		41,420		3,609		87.97		1.8	%

	1Q 2022		228,310		94,546		8,134		86.22		4.0	%
	Remaining 2022		175,306		93,305		9,069		96.95		4.5	%
	Total 2022		403,616		187,851		17,203		91.60		8.5	%
	2023		380,718		244,020		22,012		90.30		10.8	%
	2024		200,554		129,550		11,684		90.07		5.7	%
	2025		1,081,859		629,875		52,540		83.33		25.8	%
	2026		710,631		339,456		32,060		94.37		15.8	%
	2027		117,329		59,740		5,652		94.51		2.8	%
	2028		110,282		83,464		6,980		83.98		3.4	%
	2029		41,189		20,871		1,736		83.19		0.9	%
	2030		204,208		118,443		11,159		94.21		5.5	%
	Thereafter		618,877		379,913		38,172		100.50		18.7	%

⁽¹⁾	See page 37 for our definition of this measure.
⁽²⁾	Leases that expire on the last day of the quarter are treated as occupied and are reflected as expiring space in the following quarter.
⁽³⁾	Represents office and retail space only.

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CASH BASIS CAPITAL EXPENDITURES

(unaudited and in thousands)

	Three Months Ended March 31, 2021
	Total		New York		San Francisco		Other
Capital Expenditures: ⁽¹⁾
Expenditures to maintain assets	$	1,956	$	1,041	$	904	$	11
Second generation tenant improvements		7,505		1,385		6,120		-
Second generation leasing commissions		736		523		213		-
First generation leasing costs and capital expenditures		-		-		-		-
Total Capital Expenditures	$	10,197	$	2,949	$	7,237	$	11

Redevelopment Expenditures: ⁽¹⁾
Lobby Renovations	$	4,741	$	3,111	$	1,630	$	-
Elevator Modernizations		4,201		3,609		592		-
Other		521		398		123		-
Total Redevelopment Expenditures	$	9,463	$	7,118	$	2,345	$	-

	Three Months Ended March 31, 2020
	Total		New York		San Francisco		Other
Capital Expenditures: ⁽¹⁾
Expenditures to maintain assets	$	4,709	$	3,738	$	936	$	35
Second generation tenant improvements		19,726		16,243		3,483		-
Second generation leasing commissions		4,207		1,220		2,987		-
First generation leasing costs and capital expenditures		-		-		-		-
Total Capital Expenditures	$	28,642	$	21,201	$	7,406	$	35

Redevelopment Expenditures: ⁽¹⁾
Lobby Renovations	$	2,516	$	1,112	$	1,404	$	-
Elevator Modernizations		1,735		456		1,279		-
Other		751		603		148		-
Total Redevelopment Expenditures	$	5,002	$	2,171	$	2,831	$	-

⁽¹⁾	See page 37 for our definition of this measure.

- 36 -


		DEFINITIONS

We use and present various non-GAAP measures in this Supplemental Operating and Financial Data report. The following section contains definitions of these measures, describes our use of them and provides information regarding why we believe they are meaningful. Other real estate companies may use different methodologies for calculating these measures, and accordingly, our presentation of these measures may not be comparable to other real estate companies. These non-GAAP measures should not be considered a substitute for, and should only be considered together with and as a supplement to, financial information presented in accordance with GAAP.

Funds from Operations (“FFO”) is a supplemental measure of our performance. FFO is presented in accordance with the definition adopted by the National Association of Real Estate Investment Trusts (“Nareit”). Nareit defines FFO as net income or loss, calculated in accordance with GAAP, adjusted to exclude depreciation and amortization from real estate assets, impairment losses on certain real estate assets and gains or losses from the sale of certain real estate assets or from change in control of certain real estate assets, including our share of such adjustments of unconsolidated joint ventures. FFO is commonly used in the real estate industry to assist investors and analysts in comparing results of real estate companies because it excludes the effect of real estate depreciation and amortization and net gains on sales, which are based on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions. FFO is not intended to be a measure of cash flow or liquidity. FFO attributable to common stockholders represents the Company’s share of FFO that is attributable to common stockholders and is calculated by reducing from FFO, the noncontrolling interests’ share of FFO in consolidated joint ventures, real estate funds and Operating Partnership.

Core Funds from Operations (“Core FFO”) is an alternative measure of our operating performance, which adjusts FFO for certain other items that we believe enhance the comparability of our FFO across periods. Core FFO, when applicable, excludes the impact of certain items, including, transaction related costs, realized and unrealized gains or losses on real estate fund investments, unrealized gains or losses on interest rate swaps, severance costs and gains or losses on early extinguishment of debt, in order to reflect the Core FFO of our real estate portfolio and operations. In future periods, we may also exclude other items from Core FFO that we believe may help investors compare our results. Core FFO is not intended to be a measure of cash flow or liquidity. Core FFO attributable to common stockholders represents the Company’s share of Core FFO that is attributable to common stockholders and is calculated by reducing from Core FFO, the noncontrolling interests’ share of Core FFO in consolidated joint ventures, real estate funds and Operating Partnership.

Funds Available for Distribution (“FAD”) is a supplemental measure of our operating performance and is calculated as Core FFO adjusted for (i) capital expenditures to maintain assets, (ii) tenant improvements and leasing commissions incurred for second generation leases, (iii) straight-line rent adjustments, (iv) amortization of above and below-market leases, (v) amortization of stock-based compensation expense and (vi) amortization of deferred financing costs. FAD is commonly used in the real estate industry along with cash flow from operating activities as a measure of the ability to generate cash from operations and the ability to fund cash needs and make distributions to our stockholders. FAD provides information regarding our operating performance that would not otherwise be available and is useful to investors and analysts in assessing our operating performance. Additionally, although FAD is not intended to be a liquidity measure, as it does not make adjustments for the changes in working capital, we believe that FAD may provide investors and analysts with useful supplemental information regarding our ability to generate cash from operations and our ability to make distributions to our stockholders. Furthermore, we believe that FAD is frequently used by investors and analysts in evaluating our performance as a REIT. FAD attributable to common stockholders represents the Company’s share of FAD that is attributable to common stockholders and is calculated by reducing from FAD, the noncontrolling interests’ share of FAD in consolidated joint ventures, real estate funds and Operating Partnership.

Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (“EBITDAre”) is a supplemental measure of our operating performance. EBITDAre is presented in accordance with the definition adopted by Nareit. Nareit defines EBITDAre as GAAP net income (loss) adjusted to exclude interest expense, income taxes, depreciation and amortization expenses, net gains from sales of depreciated real estate assets and impairment losses on depreciable real estate, including our share of such adjustments of unconsolidated joint ventures. EBITDAre provides information regarding our operating performance that would not otherwise be available and may be useful to an investor in assessing our ability to incur and service debt. EBITDAre should not be considered as an indication of our financial performance or a measure of our cash flow or liquidity. We also present PGRE’s share of EBITDAre which represents our share of EBITDAre generated by our consolidated and unconsolidated joint ventures, based on our percentage ownership in the underlying assets.

- 37 -


		DEFINITIONS - CONTINUED

Adjusted EBITDAre is a supplemental measure that is calculated by adjusting EBITDAre to eliminate the impact of the performance of our real estate funds, unrealized gains or losses on interest rate swaps, transaction related costs, gains or losses on early extinguishment of debt and certain other items that may vary from period to period. Adjusted EBITDAre enhances the comparability of EBITDAre across periods. In future periods, we may also exclude other items from Adjusted EBITDAre that we believe may help investors compare our results. We also present PGRE’s share of Adjusted EBITDAre, which represents our share of Adjusted EBITDAre generated by our consolidated and unconsolidated joint ventures based on our percentage ownership in the underlying assets.

Net Operating Income (“NOI”) is used to measure the operating performance of our properties. NOI consists of rental revenue (which includes property rentals, tenant reimbursements and lease termination income) and certain other property-related revenue less operating expenses (which includes property-related expenses such as cleaning, security, repairs and maintenance, utilities, property administration and real estate taxes). We also present Cash NOI which deducts from NOI, straight-line rent adjustments and the amortization of above and below-market leases, including our share of such adjustments of unconsolidated joint ventures. In addition, we present PGRE’s share of NOI and Cash NOI which represents our share of NOI and Cash NOI of consolidated and unconsolidated joint ventures, based on our percentage ownership in the underlying assets. We use NOI and Cash NOI internally as performance measures and believe they provide useful information to investors regarding our financial condition and results of operations because they reflect only those income and expense items that are incurred at property level.

Same Store NOI is used to measure the operating performance of properties in our New York and San Francisco portfolios that were owned by us in a similar manner during both the current period and prior reporting periods, and represents Same Store NOI from consolidated and unconsolidated joint ventures based on our percentage ownership in the underlying assets. Same Store NOI also excludes lease termination income, impairment of receivables arising from operating leases and certain other items that may vary from period to period. We also present Same Store Cash NOI, which excludes the effect of non-cash items such as the straight-line rent adjustments and the amortization of above and below-market leases.

PGRE’s Share of Total Debt represents our share of debt of consolidated and unconsolidated joint ventures, based on our percentage ownership in the underlying assets. We believe that PGRE’s share of total debt provides useful information to investors regarding our financial condition because it includes our share of debt from unconsolidated joint ventures and excludes the noncontrolling interests’ share of debt from consolidated joint ventures that is attributable to our partners.

Annualized Rent represents the end of period monthly base rent plus escalations in accordance with the lease terms, multiplied by 12.

Leased % represents percentage of square feet that is leased, including signed leases not yet commenced.

Same Store Leased % represents percentage of square feet that is leased, including signed leases not yet commenced, for properties that were owned by us in a similar manner during both the current period and prior reporting periods and not classified as discontinued operations.

Occupied % represents the percentage of space for which we have commenced rental revenue in accordance with GAAP.

Initial Rent represents the weighted average cash basis starting rent per square foot and does not include free rent or periodic step-ups in rent.

Prior Escalated Rent represents the weighted average cash basis rent (including reimbursements) per square foot at expiration.

Second Generation Space represents space leased that has been vacant for less than twelve months.

Capital Expenditures consist of expenditures to maintain assets, tenant improvement allowances and leasing commissions. Expenditures to Maintain Assets include capital expenditures to maintain current revenues. Second Generation Tenant Improvements and Leasing Commissions represent tenant improvements and leasing commissions incurred in leasing second generation space. First Generation Leasing Costs and Other Capital Expenditures include capital expenditures completed in the year of acquisition and the following two years that were planned at the time of acquisition, as well as tenant improvements and leasing commissions on space leased that has been vacant for more than twelve months. Development Expenditures consist of hard and soft costs related to the development of a property in getting it ready for its intended use.

- 38 -

Paramount Group, Inc. - FORM 8-K - EX-99.2 - April 28, 2021

Attached files

Paramount Group, Inc. Reports