8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): February 15, 2023

Paramount Group, Inc.

(Exact Name of Registrant as Specified in Charter)

Maryland	001-36746	32-0439307
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)
1633 Broadway, Suite 1801 New York, New York			10019
(Address of Principal Executive offices)			(Zip Code)

Registrant’s telephone number, including area code: (212) 237-3100

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2.):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each Class	Trading Symbol	Name of each exchange on which registered
Common stock of Paramount Group, Inc., $0.01 par value per share	PGRE	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On February 15, 2023, Paramount Group, Inc. (the “Company”) issued a press release announcing its financial results for the fourth quarter ended December 31, 2022. A copy of that press release as well as the supplemental information referred to in the press release are available on the Company’s website and are attached hereto as Exhibits 99.1 and 99.2 and incorporated herein by reference. This Item 2.02 and the attached Exhibits 99.1 and 99.2 are being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act.

The Company will host a conference call and audio webcast on Thursday, February 16, 2023 at 10:00 a.m. Eastern Time (ET), during which management will discuss the fourth quarter results and provide commentary on business performance. A question and answer session with analysts and investors will follow the prepared remarks.

The conference call can be accessed by dialing 877-407-0789 (domestic) or 201-689-8562 (international). An audio replay of the conference call will be available from 2:00 p.m. ET on February 16, 2023 through February 23, 2023 and can be accessed by dialing 844‑512‑2921 (domestic) or 412-317-6671 (international) and entering the passcode 13735166.

A live audio webcast of the conference call will be available through the “Investors” section of the Company’s website, www.pgre.com. A replay of the webcast will be archived on the Company’s website.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits:

Exhibit Number		Description
	99.1	Press release dated February 15, 2023 and entitled “Paramount Announces Fourth Quarter 2022 Results”
	99.2	Supplemental information entitled “Paramount Group, Inc. Supplemental Operating and Financial Data for the Quarter Ended December 31, 2022”
	104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	PARAMOUNT GROUP, INC.
Date: February 15, 2023	By:	/s/ Wilbur Paes
	Name:	Wilbur Paes
	Title	Chief Operating Officer, Chief Financial Officer and Treasurer

EX-99

  Exhibit 99.1

Paramount Announces Fourth Quarter 2022 Results

– Completes $65 million of share repurchases in 2022 –

– Initiates Guidance for Full Year 2023 –

NEW YORK – February 15, 2023 – Paramount Group, Inc. (NYSE: PGRE) (“Paramount” or the “Company”) filed its Annual Report on Form 10-K for the year ended December 31, 2022 today and reported results for the fourth quarter ended December 31, 2022.

Fourth Quarter Highlights:

Results of Operations:

•Reported net loss attributable to common stockholders of $37.9 million, or $0.17 per diluted share, for the quarter ended December 31, 2022, compared to net income attributable to common stockholders of $1.2 million, or $0.01 per diluted share, for the quarter ended December 31, 2021. Net loss attributable to common stockholders for the quarter ended December 31, 2022 includes $29.6 million for our share of a real estate impairment loss of an unconsolidated joint venture.

•Reported Core Funds from Operations (“Core FFO”) attributable to common stockholders of $54.4 million, or $0.25 per diluted share, for the quarter ended December 31, 2022, compared to $52.8 million, or $0.24 per diluted share, for the quarter ended December 31, 2021.

•Reported a 2.6% decrease in Same Store Cash Net Operating Income (“NOI”) and a 3.8% increase in Same Store NOI in the quarter ended December 31, 2022, compared to the same period in the prior year.

•Leased 205,530 square feet, of which the Company’s share was 131,742 square feet that was leased at a weighted average initial rent of $77.66 per square foot. Of the 205,530 square feet leased, 116,142 square feet represented the Company’s share of second generation space, for which mark-to-markets were negative 0.7% on a cash basis and positive 2.3% on a GAAP basis.

Capital Markets Activity:

•Repurchased 10,370,610 common shares at a weighted average price of $6.27 per share, or $65.0 million in the aggregate in the year ended December 31, 2022, of which 7,133,218 shares were repurchased in the fourth quarter, at a weighted average price of $6.12 per share, or $43.7 million in the aggregate.

•Declared a fourth quarter cash dividend of $0.0775 per common share on December 15, 2022, which was paid on January 13, 2023.

1

 

Financial Results

Quarter Ended December 31, 2022

Net loss attributable to common stockholders was $37.9 million, or $0.17 per diluted share, for the quarter ended December 31, 2022, compared to net income attributable to common stockholders of $1.2 million, or $0.01 per diluted share, for the quarter ended December 31, 2021. Net loss attributable to common stockholders for the quarter ended December 31, 2022 includes $29.6 million for our share of a real estate impairment loss of an unconsolidated joint venture.

Funds from Operations (“FFO”) attributable to common stockholders was $48.5 million, or $0.22 per diluted share, for the quarter ended December 31, 2022, compared to $53.4 million, or $0.24 per diluted share, for the quarter ended December 31, 2021. FFO attributable to common stockholders for the quarters ended December 31, 2022 and 2021 includes the impact of certain non-core items, which are listed in the table on page 9. The aggregate of the non-core items, net of amounts attributable to noncontrolling interests, decreased FFO attributable to common stockholders for the quarter ended December 31, 2022 by $5.9 million, or $0.03 per diluted share and increased FFO attributable to common stockholders for the quarter ended December 31, 2021 by $0.6 million, or $0.00 per diluted share.

Core FFO attributable to common stockholders, which excludes the impact of the non-core items listed on page 9, was $54.4 million, or $0.25 per diluted share, for the quarter ended December 31, 2022, compared to $52.8 million, or $0.24 per diluted share, for the quarter ended December 31, 2021.

Year Ended December 31, 2022

Net loss attributable to common stockholders was $36.4 million, or $0.16 per diluted share, for the year ended December 31, 2022, compared to $20.4 million, or $0.09 per diluted share, for the year ended December 31, 2021. Net loss attributable to common stockholders for the year ended December 31, 2022 includes $29.6 million for our share of a real estate impairment loss of an unconsolidated joint venture. Net loss attributable to common stockholders for the year ended December 31, 2021 includes a $10.7 million contribution to an unconsolidated joint venture that was expensed in accordance with GAAP.

FFO attributable to common stockholders was $210.1 million, or $0.95 per diluted share, for the year ended December 31, 2022, compared to $192.5 million, or $0.88 per diluted share, for the year ended December 31, 2021. FFO attributable to common stockholders for the year ended December 31, 2021 includes a $10.7 million contribution to an unconsolidated joint venture that was expensed in accordance with GAAP. FFO attributable to common stockholders for the years ended December 31, 2022 and 2021 also includes the impact of other non-core items, which are listed in the table on page 9. The aggregate of the non-core items, net of amounts attributable to noncontrolling interests decreased FFO attributable to common stockholders for the years ended December 31, 2022 and 2021 by $6.7 million and $8.6 million, respectively, or $0.03 and $0.04 per diluted share, respectively.

Core FFO attributable to common stockholders, which excludes the impact of the non-core items listed on page 9, was $216.8 million, or $0.98 per diluted share, for the year ended December 31, 2022, compared to $201.1 million, or $0.92 per diluted share, for the year ended December 31, 2021.

2

 

Portfolio Operations

Quarter Ended December 31, 2022

Same Store Cash NOI decreased by $2.5 million, or 2.6%, to $96.6 million for the quarter ended December 31, 2022 from $99.1 million for the quarter ended December 31, 2021. Same Store NOI increased by $3.7 million, or 3.8%, to $101.2 million for the quarter ended December 31, 2022 from $97.5 million for the quarter ended December 31, 2021.

During the quarter ended December 31, 2022, the Company leased 205,530 square feet, of which the Company’s share was 131,742 square feet that was leased at a weighted average initial rent of $77.66 per square foot. This leasing activity, offset by lease expirations in the quarter, decreased leased occupancy and same store leased occupancy (properties owned by the Company in a similar manner during both reporting periods) by 10 basis points to 91.3% at December 31, 2022 from 91.4% at September 30, 2022. Of the 205,530 square feet leased, 116,142 square feet represented the Company’s share of second generation space (space leased that (i) has been vacant for less than twelve months or (ii) has been pre-leased prior to expiration) for which mark-to-markets were negative 0.7% on a cash basis and positive 2.3% on a GAAP basis. The weighted average lease term for leases signed during the fourth quarter was 3.8 years and weighted average tenant improvements and leasing commissions on these leases were $10.81 per square foot per annum, or 13.9% of initial rent.

Year Ended December 31, 2022

Same Store Cash NOI increased by $6.5 million, or 1.7%, to $386.1 million for the year ended December 31, 2022 from $379.6 million for the year ended December 31, 2021. Same Store NOI increased by $15.7 million, or 4.0%, to $402.4 million for the year ended December 31, 2022 from $386.7 million for the year ended December 31, 2021.

During the year ended December 31, 2022, the Company leased 947,135 square feet, of which the Company’s share was 688,041 square feet that was leased at a weighted average initial rent of $77.22 per square foot. This leasing activity, partially offset by lease expirations during the year, increased leased occupancy by 60 basis points to 91.3% at December 31, 2022 from 90.7% at December 31, 2021. Same store leased occupancy increased by 70 basis points to 91.3% at December 31, 2022 from 90.6% at December 31, 2021. Of the 947,135 square feet leased, 557,641 square feet represented the Company’s share of second generation space for which mark-to-markets were negative 5.4% on a cash basis and positive 1.5% on a GAAP basis. The weighted average lease term for leases signed during the year was 8.8 years and weighted average tenant improvements and leasing commissions on these leases were $10.72 per square foot per annum, or 13.9% of initial rent.

3

 

Guidance

The Company is providing its Estimated Core FFO Guidance for the full year of 2023, which is reconciled below to estimated net loss attributable to common stockholders per diluted share in accordance with GAAP. The Company estimates that net loss attributable to common stockholders will be between $0.13 and $0.07 per diluted share. 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.

The Company estimates that 2023 Core FFO will be between $0.88 and $0.94 per diluted share. The estimated Core FFO of $0.91 per diluted share, at the midpoint of the Company's guidance for 2023, when compared to actual Core FFO of $0.98 per diluted share for 2022, assumes among other items, decreases and increases in the Company’s share of the following components: (i) a decrease in Same Store Cash NOI of 5.5% to 3.5%, or $0.08 per diluted share (resulting primarily from two of the Company’s largest tenants’ leases expiring during 2023), (ii) a decrease in lease termination income of $0.01 per diluted share, and (iii) an increase in interest and debt expense of $0.05 per diluted share, partially offset by, (iv) an increase in non-cash straight-line rent and amortization of above and below-market lease revenue, net of $0.04 per diluted share and (v) a $0.03 per diluted share benefit due to a lower number of weighted average common shares and units outstanding in 2023, resulting from the 10.4 million common shares that were repurchased during 2022.

	Full Year 2023
(Amounts per diluted share)	Low			High
Estimated net loss attributable to common stockholders	$	(0.13	)	$	(0.07	)
Pro rata share of real estate depreciation and amortization, including    the Company's share of unconsolidated joint ventures		1.01			1.01
Estimated Core FFO	$	0.88		$	0.94

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 this release and otherwise to be referenced during the conference call referred to on page 6. These estimates do not include the impact on operating results from possible future property acquisitions or dispositions, or realized and unrealized gains and losses on real estate related 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. There can be no assurance that the Company’s actual results will not differ materially from the estimates set forth above.

Forward-Looking Statements

This press release 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 the Company’s control and could materially affect actual results, performance or achievements. These factors include, without limitation, the negative impact of the COVID-19 global pandemic or any future pandemic, endemic or outbreak of infectious disease 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; fluctuations in interest rates and 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 and the impact of rising inflation and interest rates on such 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 the Company’s filings with the U.S. Securities and Exchange Commission. The Company does not undertake a duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

4

 

Non-GAAP Financial Measures

FFO is a supplemental measure of our performance. We present FFO 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. In addition, we present Core FFO as 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 and adjustments, realized and unrealized gains or losses on real estate related 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.

FFO and Core FFO are presented as supplemental financial measures and do not fully represent our operating performance. Other REITs may use different methodologies for calculating FFO and Core FFO or use other definitions of FFO and Core FFO and, accordingly, our presentation of these measures may not be comparable to other real estate companies. Neither FFO nor Core FFO is intended to be a measure of cash flow or liquidity. Please refer to our financial statements, prepared in accordance with GAAP, for purposes of evaluating our financial condition, results of operations and cash flows.

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 the Company 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.

A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure can be found in this press release and in our Supplemental Information for the quarter ended December 31, 2022, which is available on our website.

5

 

Investor Conference Call and Webcast

The Company will host a conference call and audio webcast on Thursday, February 16, 2023 at 10:00 a.m. Eastern Time (ET), during which management will discuss the fourth quarter results and provide commentary on business performance. A question and answer session with analysts and investors will follow the prepared remarks.

The conference call can be accessed by dialing 877-407-0789 (domestic) or 201-689-8562 (international). An audio replay of the conference call will be available from 2:00 p.m. ET on February 16, 2023 through February 23, 2023 and can be accessed by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the passcode 13735166.

A live audio webcast of the conference call will be available through the “Investors” section of the Company’s website, www.pgre.com. A replay of the webcast will be archived on the Company’s website.

About Paramount Group, Inc.

Headquartered in New York City, Paramount Group, Inc. 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 City 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.

Contact Information:

Wilbur Paes Chief Operating Officer, Chief Financial Officer and Treasurer 212-237-3122 ir@pgre.com Tom Hennessy Vice President, Investor Relations and Business Development 212-237-3138 ir@pgre.com

Media:

212-492-2285

pr@pgre.com

6

 

Paramount Group, Inc.

Consolidated Balance Sheets

(Unaudited and in thousands)

Assets:	December 31, 2022			December 31, 2021
Real estate, at cost:
Land	$	1,966,237		$	1,966,237
Buildings and improvements		6,177,540			6,061,824
		8,143,777			8,028,061
Accumulated depreciation and amortization		(1,297,553	)		(1,112,977	)
Real estate, net		6,846,224			6,915,084
Cash and cash equivalents		408,905			524,900
Restricted cash		40,912			4,766
Accounts and other receivables		23,866			15,582
Real estate related fund investments		105,369			-
Investments in unconsolidated real estate related funds		3,411			11,421
Investments in unconsolidated joint ventures		393,503			408,096
Deferred rent receivable		346,338			332,735
Deferred charges, net		120,685			122,177
Intangible assets, net		90,381			119,413
Other assets		73,660			40,388
Total assets	$	8,453,254		$	8,494,562
Liabilities:
Notes and mortgages payable, net	$	3,840,318		$	3,835,620
Revolving credit facility		-			-
Accounts payable and accrued expenses		123,176			116,192
Dividends and distributions payable		18,026			16,895
Intangible liabilities, net		36,193			45,328
Other liabilities		24,775			25,495
Total liabilities		4,042,488			4,039,530
Equity:
Paramount Group, Inc. equity		3,592,291			3,588,163
Noncontrolling interests in:
Consolidated joint ventures		402,118			428,833
Consolidated real estate related funds		173,375			81,925
Operating Partnership		242,982			356,111
Total equity		4,410,766			4,455,032
Total liabilities and equity	$	8,453,254		$	8,494,562

7

 

Paramount Group, Inc.

Consolidated Statements of Income

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

			For the Three Months Ended						For the Year Ended
			December 31,						December 31,
			2022			2021			2022			2021
Revenues:
	Rental revenue		$	176,404		$	171,793		$	702,819		$	690,418
	Fee and other income			7,624			12,427			37,558			36,368
		Total revenues		184,028			184,220			740,377			726,786
Expenses:
	Operating			70,102			67,617			277,422			265,438
	Depreciation and amortization			61,211			56,735			232,517			232,487
	General and administrative			13,986			13,093			59,487			59,132
	Transaction related costs			89			413			470			916
		Total expenses		145,388			137,858			569,896			557,973
Other income (expense):
	Loss from real estate related fund investments			(2,233	)		-			(2,233	)		-
	(Loss) income from unconsolidated real estate
		related funds		(1,864	)		178			(1,239	)		782
	Loss from unconsolidated joint ventures			(37,925	)		(4,086	)		(53,251	)		(24,896	)
	Interest and other income, net			2,567			507			5,174			3,017
	Interest and debt expense			(37,060	)		(36,095	)		(143,864	)		(142,014	)
(Loss) income before income taxes				(37,875	)		6,866			(24,932	)		5,702
	Income tax expense			(1,706	)		(1,195	)		(3,265	)		(3,643	)
Net (loss) income				(39,581	)		5,671			(28,197	)		2,059
Less net (income) loss attributable to noncontrolling    interests in:
	Consolidated joint ventures			(1,598	)		(4,614	)		(13,981	)		(21,538	)
	Consolidated real estate related funds			665			286			3,342			(2,893	)
	Operating Partnership			2,637			(121	)		2,433			2,018
Net (loss) income attributable to common stockholders			$	(37,877	)	$	1,222		$	(36,403	)	$	(20,354	)
Per Share:
Basic			$	(0.17	)	$	0.01		$	(0.16	)	$	(0.09	)
Diluted			$	(0.17	)	$	0.01		$	(0.16	)	$	(0.09	)
Weighted average common shares outstanding:
Basic				218,583,895			218,735,532			221,309,938			218,701,249
Diluted				218,583,895			218,797,844			221,309,938			218,701,249

8

 

Paramount Group, Inc.

Reconciliation of Net (Loss) Income to FFO and Core FFO

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

				For the Three Months Ended						For the Year Ended
				December 31,						December 31,
				2022			2021			2022			2021
Reconciliation of Net (Loss) Income to FFO and Core FFO:
	Net (loss) income			$	(39,581	)	$	5,671		$	(28,197	)	$	2,059
	Real estate depreciation and amortization (including our
		share of unconsolidated joint ventures)			70,720			66,902			271,789			274,024
	Our share of a real estate impairment loss of an
		unconsolidated joint venture			31,685			-			31,685			-
	FFO				62,824			72,573			275,277			276,083
	Less FFO attributable to noncontrolling interests in:
		Consolidated joint ventures			(11,565	)		(14,187	)		(51,433	)		(61,609	)
		Consolidated real estate related funds			659			279			3,318			(2,904	)
	FFO attributable to Paramount Group Operating Partnership				51,918			58,665			227,162			211,570
	Less FFO attributable to noncontrolling interests in
		Operating Partnership			(3,380	)		(5,302	)		(17,063	)		(19,072	)
	FFO attributable to common stockholders			$	48,538		$	53,363		$	210,099		$	192,498
	Per diluted share			$	0.22		$	0.24		$	0.95		$	0.88
	FFO			$	62,824		$	72,573		$	275,277		$	276,083
	Non-core items:
		Realized and unrealized losses (gains) from unconsolidated     real estate related funds			2,851			(37	)		2,890			(108	)
		Loss recognized upon consolidation of real estate related     fund investments that were previously unconsolidated			2,627			-			2,627			-
		FFO attributable to One Steuart Lane, including after-tax
			net gain on sale of residential condominium units		1,387			391			4,670			(2,876	)
		Adjustment to equity in earnings for contributions to
			(distributions from) unconsolidated joint ventures		561			(961	)		855			8,016
		Non-cash write-off of deferred financing costs			-			-			-			761
		Other, net			89			413			470			916
	Core FFO				70,339			72,379			286,789			282,792
	Less Core FFO attributable to noncontrolling interests in:
		Consolidated joint ventures			(11,565	)		(14,187	)		(51,433	)		(61,609	)
		Consolidated real estate related funds			(625	)		(140	)		(1,006	)		(205	)
	Core FFO attributable to Paramount Group Operating
		Partnership			58,149			58,052			234,350			220,978
	Less Core FFO attributable to noncontrolling interests in
		Operating Partnership			(3,785	)		(5,246	)		(17,526	)		(19,923	)
	Core FFO attributable to common stockholders			$	54,364		$	52,806		$	216,824		$	201,055
	Per diluted share			$	0.25		$	0.24		$	0.98		$	0.92
Reconciliation of weighted average shares outstanding:
	Weighted average shares outstanding				218,583,895			218,735,532			221,309,938			218,701,249
	Effect of dilutive securities				59,378			62,312			31,487			45,709
	Denominator for FFO and Core FFO per diluted share				218,643,273			218,797,844			221,341,425			218,746,958

9

 

Paramount Group, Inc.

Reconciliation of Net (Loss) Income to Same Store NOI and Same Store Cash NOI

(Unaudited and in thousands)

			For the Three Months Ended						For the Year Ended
			December 31,						December 31,
			2022			2021			2022			2021
Reconciliation of Net (Loss) Income to Same Store NOI    and Same Store Cash NOI:
	Net (loss) income		$	(39,581	)	$	5,671		$	(28,197	)	$	2,059
	Add (subtract) adjustments to arrive at NOI and Cash NOI:
		Depreciation and amortization		61,211			56,735			232,517			232,487
		General and administrative		13,986			13,093			59,487			59,132
		Interest and debt expense		37,060			36,095			143,864			142,014
		Income tax expense		1,706			1,195			3,265			3,643
		Loss from real estate related fund investments		2,233			-			2,233			-
		NOI from unconsolidated joint ventures (excluding    One Steuart Lane)		10,782			11,087			45,141			43,597
		Loss from unconsolidated joint ventures		37,925			4,086			53,251			24,896
		Fee income		(5,327	)		(9,041	)		(28,421	)		(28,473	)
		Interest and other income, net		(2,567	)		(507	)		(5,174	)		(3,017	)
		Other, net		1,953			235			1,709			134
	NOI			119,381			118,649			479,675			476,472
	Less NOI attributable to noncontrolling interests in:
		Consolidated joint ventures		(19,247	)		(22,123	)		(82,587	)		(92,890	)
		Consolidated real estate related funds		-			-			-			206
	PGRE's share of NOI			100,134			96,526			397,088			383,788
		Acquisitions / Redevelopment		(87	)		(688	)		(453	)		(1,612	)
		Lease termination income		-			-			(1,875	)		(1,745	)
		Other, net		1,156			1,625			7,626			6,311
	PGRE's share of Same Store NOI		$	101,203		$	97,463		$	402,386		$	386,742
	NOI		$	119,381		$	118,649		$	479,675		$	476,472
	Less:
		Straight-line rent adjustments (including our share    of unconsolidated joint ventures)		(5,746	)		4,817			(14,034	)		(4,983	)
		Amortization of above and below-market leases, net    (including our share of unconsolidated joint ventures)		(1,984	)		(1,617	)		(5,099	)		(6,704	)
	Cash NOI			111,651			121,849			460,542			464,785
	Less Cash NOI attributable to noncontrolling interests in:
		Consolidated joint ventures		(16,147	)		(23,518	)		(77,341	)		(87,831	)
		Consolidated real estate related funds		-			-			-			206
	PGRE's share of Cash NOI			95,504			98,331			383,201			377,160
		Acquisitions / Redevelopment		(100	)		(856	)		(496	)		(2,004	)
		Lease termination income		-			-			(1,875	)		(1,745	)
		Other, net		1,148			1,635			5,253			6,142
	PGRE's share of Same Store Cash NOI		$	96,552		$	99,110		$	386,083		$	379,553

10

EX-99

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 or any future pandemic, endemic or outbreak of infectious disease 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; fluctuations in interest rates and 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 and the impact of rising inflation and interest rates on such 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.

- 2 -

  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 - 16
	Same Store Results	17 - 20
	Consolidated Joint Ventures and Fund	21 - 26
	Unconsolidated Joint Ventures	27 - 32
	Capital Structure	33
	Debt Analysis	34
	Debt Maturities	35
Selected Property Data
	Portfolio Summary	36 - 37
	Same Store Leased Occupancy	38 - 39
	Top Tenants and Industry Diversification	40
	Leasing Activity	41 - 42
	Lease Expirations	43 - 45
	Cash Basis Capital Expenditures	46 - 47
Definitions		48 - 49

- 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
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, Lead Independent Director, Chair of Nominating and Corporate Governance Committee
Karin Klein	Director
Peter Linneman	Director, Chair of Audit Committee
Katharina Otto-Bernstein	Director
Mark Patterson	Director
Hitoshi Saito	Director
Paula Sutter	Director
Greg Wright	Director, Chair of Compensation Committee

COMPANY INFORMATION

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

- 4 -

  RESEARCH COVERAGE (1)

Jeffrey Spector	Thomas Catherwood	Derek Johnston
Bank of America Merrill Lynch	BTIG	Deutsche Bank
(646) 855-1363	(212) 738-6140	(904) 520-4973
jeff.spector@bofa.com	tcatherwood@btig.com	derek.johnston@db.com
Steve Sakwa	Dylan Burzinski	Vikram Malhotra
Evercore ISI	Green Street Advisors	Mizuho Securities USA Inc.
(212) 446-9462	(949) 640-8780	(212) 282-3827
steve.sakwa@evercoreisi.com	dburzinski@greenstreet.com	vikram.malhotra@mizuhogroup.com
Ronald Kamdem	Blaine Heck	Andrew Rosivach
Morgan Stanley	Wells Fargo	Wolfe Research
(212) 296-8319	(443) 263-6529	(646) 582-9250
ronald.kamdem@morganstanley.com	blaine.heck@wellsfargo.com	arosivach@wolferesearch.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.

- 5 -

  GUIDANCE

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

				Full Year 2023
(Amounts per diluted share)				Low			High
			Estimated net loss attributable to common stockholders	$	(0.13	)	$	(0.07	)
			Our share of real estate depreciation and amortization		1.01			1.01
			Estimated Core FFO (1)(2)	$	0.88		$	0.94
	Operating Assumptions:
		Leasing Activity (square feet)			600,000			900,000
		PGRE's share of Same Store Leased % (2) at year end			90.8	%		91.8	%
		Decrease in PGRE's share of Same Store Cash NOI (2)			(5.5	%)		(3.5	%)
		Decrease in PGRE's share of Same Store NOI (2)			(3.5	%)		(1.5	%)
	Financial Assumptions (at share):
		Estimated net loss		$	(31,000	)	$	(17,000	)
			Depreciation and amortization		235,000			235,000
			General and administrative expenses		61,000			59,000
			Interest and debt expense, including amortization of deferred financing costs		147,500			144,500
			Fee income, net of income taxes		(30,500	)		(31,500	)
		NOI (2)			382,000			390,000
			Straight-line rent adjustments and above and below-market lease revenue, net		(22,500	)		(24,500	)
		Cash NOI (2)		$	359,500		$	365,500

(1)We are providing our Estimated Core FFO Guidance for the full year of 2023, 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 February 15, 2023 and otherwise to be referenced during our conference call scheduled for February 16, 2023. These estimates do not include the impact on operating results from possible future property acquisitions or dispositions, or realized and unrealized gains and losses on real estate related 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. There can be no assurance that our actual results will not differ materially from the estimates set forth above.

(2)See page 48 for our definition of this measure.

- 6 -

  FINANCIAL HIGHLIGHTS

(unaudited and in thousands, except per share amounts)

			Three Months Ended								Year Ended
SELECTED FINANCIAL DATA			December 31, 2022			December 31, 2021		September 30, 2022			December 31, 2022			December 31, 2021
	Net (loss) income attributable to common stockholders		$	(37,877	)	$	1,222	$	(1,537	)	$	(36,403	)	$	(20,354	)
		Per share - basic and diluted	$	(0.17	)	$	0.01	$	(0.01	)	$	(0.16	)	$	(0.09	)
	Core FFO attributable to common stockholders (1)		$	54,364		$	52,806	$	54,249		$	216,824		$	201,055
		Per share - diluted	$	0.25		$	0.24	$	0.24		$	0.98		$	0.92
	PGRE's share of Cash NOI (1)		$	95,504		$	98,331	$	95,963		$	383,201		$	377,160
	PGRE's share of NOI (1)		$	100,134		$	96,526	$	99,488		$	397,088		$	383,788

Same Store Cash NOI (1)	% Change			Same Store NOI (1)	% Change
Three Months Ended December 31, 2022 vs. December 31, 2021		(2.6	%)	Three Months Ended December 31, 2022 vs. December 31, 2021		3.8	%
Year Ended December 31, 2022 vs. December 31, 2021		1.7	%	Year Ended December 31, 2022 vs. December 31, 2021		4.0	%

PORTFOLIO STATISTICS (at PGRE Share)

	As of
	December 31, 2022			September 30, 2022			June 30, 2022			March 31, 2022			December 31, 2021
Leased % (1)		91.3	%		91.4	%		91.4	%		90.6	%		90.7	%

Same Store Leased % (1)	% Change			Same Store Leased % (1)	% Change
December 31, 2022 vs. September 30, 2022		(0.1	%)	December 31, 2022 vs. December 31, 2021		0.7	%

COMMON SHARE DATA

		Three Months Ended
Share Price:		December 31, 2022			September 30, 2022			June 30, 2022			March 31, 2022			December 31, 2021
	High	$	6.86		$	7.95		$	11.04		$	11.54		$	9.53
	Low	$	5.48		$	6.00		$	7.08		$	8.22		$	7.79
	Closing (end of period)	$	5.94		$	6.23		$	7.23		$	10.91		$	8.34
Dividends per common share		$	0.0775		$	0.0775		$	0.0775		$	0.0775		$	0.07
Annualized dividends per common share		$	0.31		$	0.31		$	0.31		$	0.31		$	0.28
Dividend yield (on closing share price)			5.2	%		5.0	%		4.3	%		2.8	%		3.4	%

(1)See page 48 for our definition of this measure.

- 7 -

  CONSOLIDATED BALANCE SHEETS

(unaudited and in thousands)

			December 31, 2022			December 31, 2021
Assets:
	Real estate, at cost:
		Land	$	1,966,237		$	1,966,237
		Buildings and improvements		6,177,540			6,061,824
				8,143,777			8,028,061
		Accumulated depreciation and amortization		(1,297,553	)		(1,112,977	)
	Real estate, net			6,846,224			6,915,084
	Cash and cash equivalents			408,905			524,900
	Restricted cash			40,912			4,766
	Accounts and other receivables			23,866			15,582
	Real estate related fund investments			105,369			-
	Investments in unconsolidated real estate related funds			3,411			11,421
	Investments in unconsolidated joint ventures			393,503			408,096
	Deferred rent receivable			346,338			332,735
	Deferred charges, net			120,685			122,177
	Intangible assets, net			90,381			119,413
	Other assets			73,660			40,388
Total assets			$	8,453,254		$	8,494,562
Liabilities:
	Notes and mortgages payable, net		$	3,840,318		$	3,835,620
	Revolving credit facility			-			-
	Accounts payable and accrued expenses			123,176			116,192
	Dividends and distributions payable			18,026			16,895
	Intangible liabilities, net			36,193			45,328
	Other liabilities			24,775			25,495
Total liabilities				4,042,488			4,039,530
Equity:
	Paramount Group, Inc. equity			3,592,291			3,588,163
	Noncontrolling interests in:
		Consolidated joint ventures		402,118			428,833
		Consolidated real estate related funds		173,375			81,925
		Operating Partnership		242,982			356,111
Total equity				4,410,766			4,455,032
Total liabilities and equity			$	8,453,254		$	8,494,562

- 8 -

  CONSOLIDATED STATEMENTS OF INCOME

(unaudited and in thousands, except per share amounts)

		Three Months Ended									Year Ended
		December 31, 2022			December 31, 2021			September 30, 2022			December 31, 2022			December 31, 2021
Revenues:
	Rental revenue (1)	$	176,404		$	171,793		$	179,250		$	702,819		$	690,418
	Fee and other income (1)		7,624			12,427			7,897			37,558			36,368
Total revenues			184,028			184,220			187,147			740,377			726,786
Expenses:
	Operating		70,102			67,617			72,845			277,422			265,438
	Depreciation and amortization		61,211			56,735			58,284			232,517			232,487
	General and administrative		13,986			13,093			13,150			59,487			59,132
	Transaction related costs		89			413			105			470			916
Total expenses			145,388			137,858			144,384			569,896			557,973
Other income (expense):
	Loss from real estate related fund investments		(2,233	)		-			-			(2,233	)		-
	(Loss) income from unconsolidated real estate related funds		(1,864	)		178			300			(1,239	)		782
	Loss from unconsolidated joint ventures		(37,925	)		(4,086	)		(5,797	)		(53,251	)		(24,896	)
	Interest and other income, net (1)		2,567			507			1,580			5,174			3,017
	Interest and debt expense (1)		(37,060	)		(36,095	)		(36,949	)		(143,864	)		(142,014	)
(Loss) income before income taxes			(37,875	)		6,866			1,897			(24,932	)		5,702
	Income tax expense		(1,706	)		(1,195	)		(673	)		(3,265	)		(3,643	)
Net (loss) income			(39,581	)		5,671			1,224			(28,197	)		2,059
Less net (income) loss attributable to noncontrolling    interests in:
	Consolidated joint ventures		(1,598	)		(4,614	)		(4,179	)		(13,981	)		(21,538	)
	Consolidated real estate related funds		665			286			1,309			3,342			(2,893	)
	Operating Partnership		2,637			(121	)		109			2,433			2,018
Net (loss) income attributable to common stockholders		$	(37,877	)	$	1,222		$	(1,537	)	$	(36,403	)	$	(20,354	)
	Per diluted share	$	(0.17	)	$	0.01		$	(0.01	)	$	(0.16	)	$	(0.09	)

(1)See page 10 for details.

- 9 -

  SELECT INCOME STATEMENT DATA

(unaudited and in thousands)

		Three Months Ended								Year Ended
Rental Revenue:		December 31, 2022		December 31, 2021			September 30, 2022			December 31, 2022		December 31, 2021
	Property rentals	$	159,029	$	162,622		$	159,549		$	634,019	$	632,215
	Tenant reimbursements		10,422		13,866			15,978			51,394		47,562
	Straight-line rent adjustments		5,794		(5,430	)		3,807			13,602		2,495
	Amortization of above and below-market leases, net		1,159		735			(84	)		1,748		3,070
	Lease termination income		-		-			-			2,056		5,076
Total rental revenue		$	176,404	$	171,793		$	179,250		$	702,819	$	690,418

			Three Months Ended						Year Ended
Fee and Other Income:			December 31, 2022		December 31, 2021		September 30, 2022		December 31, 2022		December 31, 2021
	Asset management		$	3,132	$	3,109	$	3,166	$	12,270	$	13,284
	Property management			1,810		2,132		1,849		7,981		8,589
	Acquisition, disposition, leasing and other			385		3,800		117		8,170		6,600
	Total fee income			5,327		9,041		5,132		28,421		28,473
	Other (primarily parking income and tenant requested services,
		including cleaning and overtime heating and cooling)		2,297		3,386		2,765		9,137		7,895
Total fee and other income			$	7,624	$	12,427	$	7,897	$	37,558	$	36,368

			Three Months Ended						Year Ended
Interest and Other Income, net:			December 31, 2022		December 31, 2021		September 30, 2022		December 31, 2022		December 31, 2021
	Interest income, net		$	2,567	$	175	$	1,580	$	5,174	$	1,183
	Mark-to-market of deferred compensation plan assets (offset by
		increase in the mark-to-market of plan liabilities, which is
		included in "general and administrative" expenses) (1)		-		332		-		-		1,834
Total interest and other income, net			$	2,567	$	507	$	1,580	$	5,174	$	3,017

(1)In December 2021, the deferred compensation plan was terminated and the net proceeds were distributed to the plan participants.

		Three Months Ended						Year Ended
Interest and Debt Expense:		December 31, 2022		December 31, 2021		September 30, 2022		December 31, 2022		December 31, 2021
	Interest expense	$	35,518	$	34,274	$	35,412	$	137,708	$	132,887
	Amortization of deferred financing costs		1,542		1,821		1,537		6,156		9,127	(1)
Total interest and debt expense		$	37,060	$	36,095	$	36,949	$	143,864	$	142,014

(1)Includes $761 of expense from the non‐cash write‐off of deferred financing costs in connection with the $860,000 refinancing of 1301 Avenue of the Americas in July 2021.

- 10 -

  FFO

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

			Three Months Ended									Year Ended
			December 31, 2022			December 31, 2021			September 30, 2022			December 31, 2022			December 31, 2021
Reconciliation of net (loss) income to FFO and Core FFO:
	Net (loss) income		$	(39,581	)	$	5,671		$	1,224		$	(28,197	)	$	2,059
	Real estate depreciation and amortization (including our share of
		unconsolidated joint ventures)		70,720			66,902			68,009			271,789			274,024
	Our share of a real estate impairment loss of an unconsolidated joint venture			31,685			-			-			31,685			-
	FFO (1)			62,824			72,573			69,233			275,277			276,083
	Less FFO attributable to noncontrolling interests in:
		Consolidated joint ventures		(11,565	)		(14,187	)		(13,408	)		(51,433	)		(61,609	)
		Consolidated real estate related funds		659			279			1,304			3,318			(2,904	)
	FFO attributable to Paramount Group Operating Partnership			51,918			58,665			57,129			227,162			211,570
	Less FFO attributable to noncontrolling interests in Operating Partnership			(3,380	)		(5,302	)		(3,763	)		(17,063	)		(19,072	)
	FFO attributable to common stockholders (1)		$	48,538		$	53,363		$	53,366		$	210,099		$	192,498
	Per diluted share		$	0.22		$	0.24		$	0.24		$	0.95		$	0.88
	FFO		$	62,824		$	72,573		$	69,233		$	275,277		$	276,083
	Non-core items:
		Realized and unrealized losses (gains) from unconsolidated real estate     related funds		2,851			(37	)		21			2,890			(108	)
		Loss recognized upon consolidation of real estate related fund investments     that were previously unconsolidated		2,627			-			-			2,627			-
		FFO attributable to One Steuart Lane, including after-tax net gain on     sale of residential condominium units		1,387			391			1,509			4,670			(2,876	)
		Adjustments to equity in earnings for contributions to (distributions from)     unconsolidated joint ventures		561			(961	)		709			855			8,016
		Non-cash write-off of deferred financing costs		-			-			-			-			761
		Other, net		89			413			105			470			916
	Core FFO (1)			70,339			72,379			71,577			286,789			282,792
	Less Core FFO attributable to noncontrolling interests in:
		Consolidated joint ventures		(11,565	)		(14,187	)		(13,408	)		(51,433	)		(61,609	)
		Consolidated real estate related funds		(625	)		(140	)		(94	)		(1,006	)		(205	)
	Core FFO attributable to Paramount Group Operating Partnership			58,149			58,052			58,075			234,350			220,978
	Less Core FFO attributable to noncontrolling interests in     Operating Partnership			(3,785	)		(5,246	)		(3,826	)		(17,526	)		(19,923	)
	Core FFO attributable to common stockholders (1)		$	54,364		$	52,806		$	54,249		$	216,824		$	201,055
	Per diluted share		$	0.25		$	0.24		$	0.24		$	0.98		$	0.92
Reconciliation of weighted average shares outstanding:
	Weighted average shares outstanding			218,583,895			218,735,532			224,864,791			221,309,938			218,701,249
	Effect of dilutive securities			59,378			62,312			28,555			31,487			45,709
	Denominator for FFO and Core FFO per diluted share			218,643,273			218,797,844			224,893,346			221,341,425			218,746,958

(1)See page 48 for our definition of this measure.

- 11 -

  FAD

(unaudited and in thousands)

				Three Months Ended									Year Ended
				December 31, 2022			December 31, 2021			September 30, 2022			December 31, 2022			December 31, 2021
Reconciliation of Core FFO to FAD:
	Core FFO			$	70,339		$	72,379		$	71,577		$	286,789		$	282,792
	Add (subtract) adjustments (including our share of    unconsolidated joint ventures) to arrive at FAD:
		Straight-line rent adjustments			(5,746	)		4,817			(3,969	)		(14,034	)		(4,983	)
		Amortization of above and below-market leases, net			(1,984	)		(1,617	)		(790	)		(5,099	)		(6,704	)
		Amortization of deferred financing costs			1,919			2,255			1,909			7,712			9,838		(1)
		Amortization of stock-based compensation expense			4,150			4,191			4,149			19,003			18,612
		Expenditures to maintain assets			(18,835	)		(20,089	)		(11,834	)		(54,962	)		(43,019	)
		Second generation tenant improvements
			and leasing commissions		(40,213	)		(20,185	)		(12,428	)		(83,406	)		(65,533	)
	FAD (2)				9,630			41,751			48,614			156,003			191,003
	Less FAD attributable to noncontrolling interests in:
		Consolidated joint ventures			81			(11,002	)		(8,391	)		(27,412	)		(33,991	)
		Consolidated real estate related funds			(683	)		(242	)		(152	)		(1,283	)		(373	)
	FAD attributable to Paramount Group Operating Partnership				9,028			30,507			40,071			127,308			156,639
	Less FAD attributable to noncontrolling interests in    Operating Partnership				(588	)		(2,757	)		(2,640	)		(9,874	)		(14,111	)
	FAD attributable to common stockholders (2) (3)			$	8,440		$	27,750		$	37,431		$	117,434		$	142,528
	Dividends declared on common stock			$	16,827		$	15,329		$	17,269		$	68,561		$	61,310

(1)Excludes $761 of expense from the non‐cash write‐off of deferred financing costs in connection with the $860,000 refinancing of 1301 Avenue of the Americas in July 2021.

(2)See page 48 for our definition of this measure.

(3)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.

- 12 -

  EBITDAre

(unaudited and in thousands)

			Three Months Ended									Year Ended
			December 31, 2022			December 31, 2021			September 30, 2022			December 31, 2022			December 31, 2021
Reconciliation of net (loss) income to EBITDAre and    Adjusted EBITDAre:
	Net (loss) income		$	(39,581	)	$	5,671		$	1,224		$	(28,197	)	$	2,059
	Add (subtract) adjustments (including our share of    unconsolidated joint ventures) to arrive at EBITDAre    and Adjusted EBITDAre:
		Depreciation and amortization		70,720			66,902			68,009			271,789			274,024
		Interest and debt expense		43,831			43,112			43,516			170,141			166,533
		Our share of a real estate impairment loss of an     unconsolidated joint venture		31,685			-			-			31,685			-
		Income tax expense		1,707			1,195			674			3,287			3,658
	EBITDAre (1)			108,362			116,880			113,423			448,705			446,274
	Less EBITDAre attributable to noncontrolling interests in:
		Consolidated joint ventures		(19,520	)		(22,139	)		(21,362	)		(83,049	)		(92,950	)
		Consolidated real estate related funds		(185	)		(1,125	)		346			(352	)		(5,439	)
	PGRE's share of EBITDAre (1)		$	88,657		$	93,616		$	92,407		$	365,304		$	347,885
	EBITDAre		$	108,362		$	116,880		$	113,423		$	448,705		$	446,274
	Add (subtract) adjustments to arrive at Adjusted EBITDAre:
		Adjustments to equity in earnings for contributions to    (distributions from) an unconsolidated joint venture		561			(961	)		709			855			8,016
		EBITDAre attributable to One Steuart Lane, including    net gain on sale of residential condominium units		475			(2,479	)		475			708			(8,222	)
		Loss recognized upon consolidation of real estate related    fund investments that were previously unconsolidated		2,627			-			-			2,627			-
		Other, net		1,386			1,542			(305	)		817			2,495
	Adjusted EBITDAre (1)			113,411			114,982			114,302			453,712			448,563
	Less Adjusted EBITDAre attributable to noncontrolling interests in:
		Consolidated joint ventures		(19,520	)		(22,139	)		(21,362	)		(83,049	)		(92,950	)
	PGRE's share of Adjusted EBITDAre (1)		$	93,891		$	92,843		$	92,940		$	370,663		$	355,613

(1)See page 48 for our definition of this measure.

- 13 -

  NOI

(unaudited and in thousands)

				Three Months Ended									Year Ended
				December 31, 2022			December 31, 2021			September 30, 2022			December 31, 2022			December 31, 2021
Reconciliation of net (loss) income to NOI and Cash NOI:
	Net (loss) income			$	(39,581	)	$	5,671		$	1,224		$	(28,197	)	$	2,059
	Add (subtract) adjustments to arrive at NOI and Cash NOI:
		Depreciation and amortization			61,211			56,735			58,284			232,517			232,487
		General and administrative			13,986			13,093			13,150			59,487			59,132
		Interest and debt expense			37,060			36,095			36,949			143,864			142,014
		Income tax expense			1,706			1,195			673			3,265			3,643
		Loss from real estate related fund investments			2,233			-			-			2,233			-
		NOI from unconsolidated joint ventures (excluding     One Steuart Lane)			10,782			11,087			11,540			45,141			43,597
		Loss from unconsolidated joint ventures			37,925			4,086			5,797			53,251			24,896
		Fee income			(5,327	)		(9,041	)		(5,132	)		(28,421	)		(28,473	)
		Interest and other income, net			(2,567	)		(507	)		(1,580	)		(5,174	)		(3,017	)
		Other, net			1,953			235			(195	)		1,709			134
	NOI (1)				119,381			118,649			120,710			479,675			476,472
	Less NOI attributable to noncontrolling interests in:
		Consolidated joint ventures			(19,247	)		(22,123	)		(21,222	)		(82,587	)		(92,890	)
		Consolidated real estate related funds			-			-			-			-			206
	PGRE's share of NOI (1)			$	100,134		$	96,526		$	99,488		$	397,088		$	383,788
	NOI			$	119,381		$	118,649		$	120,710		$	479,675		$	476,472
	Less:
		Straight-line rent adjustments (including our share of
			unconsolidated joint ventures)		(5,746	)		4,817			(3,969	)		(14,034	)		(4,983	)
		Amortization of above and below-market leases, net
			(including our share of unconsolidated joint ventures)		(1,984	)		(1,617	)		(790	)		(5,099	)		(6,704	)
	Cash NOI (1)				111,651			121,849			115,951			460,542			464,785
	Less Cash NOI attributable to noncontrolling interests in:
		Consolidated joint ventures			(16,147	)		(23,518	)		(19,988	)		(77,341	)		(87,831	)
		Consolidated real estate related funds			-			-			-			-			206
	PGRE's share of Cash NOI (1)			$	95,504		$	98,331		$	95,963		$	383,201		$	377,160

(1)See page 48 for our definition of this measure.

- 14 -

  NOI

(unaudited and in thousands)

				Three Months Ended December 31, 2022
				Total			New York			San Francisco			Other
Reconciliation of net (loss) income to NOI and Cash NOI:
	Net (loss) income			$	(39,581	)	$	5,193		$	(27,454	)	$	(17,320	)
	Add (subtract) adjustments to arrive at NOI and Cash NOI:
		Depreciation and amortization			61,211			40,597			19,408			1,206
		General and administrative			13,986			-			-			13,986
		Interest and debt expense			37,060			23,499			12,796			765
		Income tax expense			1,706			6			-			1,700
		Loss from real estate related fund investments			2,233			-			-			2,233
		NOI from unconsolidated joint ventures (excluding One Steuart Lane)			10,782			3,355			7,434			(7	)
		Loss from unconsolidated joint ventures			37,925			102			36,374			1,449
		Fee income			(5,327	)		-			-			(5,327	)
		Interest and other income, net			(2,567	)		(430	)		(389	)		(1,748	)
		Other, net			1,953			-			-			1,953
	NOI (1)				119,381			72,322			48,169			(1,110	)
	Less NOI attributable to noncontrolling interests in:
		Consolidated joint ventures			(19,247	)		(2,576	)		(16,671	)		-
	PGRE's share of NOI for the three months ended December 31, 2022			$	100,134		$	69,746		$	31,498		$	(1,110	)
	PGRE's share of NOI for the three months ended December 31, 2021			$	96,526		$	64,235		$	33,948		$	(1,657	)
	NOI			$	119,381		$	72,322		$	48,169		$	(1,110	)
	Add (subtract) adjustments to arrive at Cash NOI:
		Straight-line rent adjustments (including our share of
			unconsolidated joint ventures)		(5,746	)		(900	)		(4,816	)		(30	)
		Amortization of above and below-market leases, net (including
			our share of unconsolidated joint ventures)		(1,984	)		319			(2,303	)		-
	Cash NOI (1)				111,651			71,741			41,050			(1,140	)
	Less Cash NOI attributable to noncontrolling interests in:
		Consolidated joint ventures			(16,147	)		(2,743	)		(13,404	)		-
	PGRE's share of Cash NOI for the three months ended December 31, 2022			$	95,504		$	68,998		$	27,646		$	(1,140	)
	PGRE's share of Cash NOI for the three months ended December 31, 2021			$	98,331		$	66,053		$	33,965		$	(1,687	)

(1)See page 48 for our definition of this measure.

- 15 -

  NOI

(unaudited and in thousands)

				Year Ended December 31, 2022
				Total			New York			San Francisco			Other
Reconciliation of net (loss) income to NOI and Cash NOI:
	Net (loss) income			$	(28,197	)	$	23,925		$	251		$	(52,373	)
	Add (subtract) adjustments to arrive at NOI and Cash NOI:
		Depreciation and amortization			232,517			156,036			72,190			4,291
		General and administrative			59,487			-			-			59,487
		Interest and debt expense			143,864			89,964			50,850			3,050
		Income tax expense			3,265			13			4			3,248
		Loss from real estate related fund investments			2,233			-			-			2,233
		NOI from unconsolidated joint ventures (excluding One Steuart Lane)			45,141			13,257			31,596			288
		Loss from unconsolidated joint ventures			53,251			98			48,538			4,615
		Fee income			(28,421	)		-			-			(28,421	)
		Interest and other income, net			(5,174	)		(712	)		(669	)		(3,793	)
		Other, net			1,709			-			-			1,709
	NOI (1)				479,675			282,581			202,760			(5,666	)
	Less NOI attributable to noncontrolling interests in:
		Consolidated joint ventures			(82,587	)		(10,384	)		(72,203	)		-
	PGRE's share of NOI for the year ended December 31, 2022			$	397,088		$	272,197		$	130,557		$	(5,666	)
	PGRE's share of NOI for the year ended December 31, 2021			$	383,788		$	252,495		$	137,942		$	(6,649	)
	NOI			$	479,675		$	282,581		$	202,760		$	(5,666	)
	Add (subtract) adjustments to arrive at Cash NOI:
		Straight-line rent adjustments (including our share of
			unconsolidated joint ventures)		(14,034	)		(17	)		(14,017	)		-
		Amortization of above and below-market leases, net (including
			our share of unconsolidated joint ventures)		(5,099	)		1,916			(7,015	)		-
	Cash NOI (1)				460,542			284,480			181,728			(5,666	)
	Less Cash NOI attributable to noncontrolling interests in:
		Consolidated joint ventures			(77,341	)		(11,202	)		(66,139	)		-
	PGRE's share of Cash NOI for the year ended December 31, 2022			$	383,201		$	273,278		$	115,589		$	(5,666	)
	PGRE's share of Cash NOI for the year ended December 31, 2021			$	377,160		$	255,654		$	128,155		$	(6,649	)

(1)See page 48 for our definition of this measure

- 16 -

  SAME STORE RESULTS

(unaudited and in thousands)

SAME STORE CASH NOI (1)			Three Months Ended December 31, 2022
			Total			New York			San Francisco		Other
	PGRE's share of Cash NOI for the three months ended December 31, 2022		$	95,504		$	68,998		$	27,646	$	(1,140	)
		Acquisitions / Redevelopment (2) (3)		(100	)		(100	)		-		-
		Other, net		1,148			-			8		1,140
	PGRE's share of Same Store Cash NOI for the three months ended
		December 31, 2022	$	96,552		$	68,898		$	27,654	$	-

		Three Months Ended December 31, 2021
		Total			New York			San Francisco			Other
PGRE's share of Cash NOI for the three months ended December 31, 2021		$	98,331		$	66,053		$	33,965		$	(1,687	)
	Acquisitions / Redevelopment (3)		(856	)		(856	)		-			-
	Other, net		1,635			(51	)		(1	)		1,687
PGRE's share of Same Store Cash NOI for the three months ended
	December 31, 2021	$	99,110		$	65,146		$	33,964		$	-
(Decrease) increase in PGRE's share of Same Store Cash NOI		$	(2,558	)	$	3,752		$	(6,310	)	$	-
% (Decrease) increase			(2.6	%)		5.8	%		(18.6	%)

(1)See page 48 for our definition of this measure.

(2)Represents our share of Cash NOI attributable to 1600 Broadway for the months in which it was not owned by us in both reporting periods.

(3)Represents our share of Cash NOI attributable to 60 Wall Street which was taken "out-of-service" for redevelopment.

- 17 -

  SAME STORE RESULTS

(unaudited and in thousands)

SAME STORE NOI (1)			Three Months Ended December 31, 2022
			Total			New York			San Francisco		Other
	PGRE's share of NOI for the three months ended December 31, 2022		$	100,134		$	69,746		$	31,498	$	(1,110	)
		Acquisitions / Redevelopment (2) (3)		(87	)		(87	)		-		-
		Other, net		1,156			-			46		1,110
	PGRE's share of Same Store NOI for the three months ended
		December 31, 2022	$	101,203		$	69,659		$	31,544	$	-

		Three Months Ended December 31, 2021
		Total			New York			San Francisco			Other
PGRE's share of NOI for the three months ended December 31, 2021		$	96,526		$	64,235		$	33,948		$	(1,657	)
	Acquisitions / Redevelopment (3)		(688	)		(688	)		-			-
	Other, net		1,625			(31	)		(1	)		1,657
PGRE's share of Same Store NOI for the three months ended
	December 31, 2021	$	97,463		$	63,516		$	33,947		$	-
Increase (decrease) in PGRE's share of Same Store NOI		$	3,740		$	6,143		$	(2,403	)	$	-
% Increase (decrease)			3.8	%		9.7	%		(7.1	%)

(1)See page 48 for our definition of this measure.

(2)Represents our share of NOI attributable to 1600 Broadway for the months in which it was not owned by us in both reporting periods.

(3)Represents our share of NOI attributable to 60 Wall Street which was taken "out-of-service" for redevelopment.

- 18 -

  SAME STORE RESULTS

(unaudited and in thousands)

SAME STORE CASH NOI (1)			Year Ended December 31, 2022
			Total			New York			San Francisco			Other
	PGRE's share of Cash NOI for the year ended December 31, 2022		$	383,201		$	273,278		$	115,589		$	(5,666	)
		Acquisitions / Redevelopment (2) (3)		(496	)		(496	)		-			-
		Lease termination income		(1,875	)		(1,875	)		-			-
		Other, net		5,253			(200	)		(213	)		5,666
	PGRE's share of Same Store Cash NOI for the year ended
		December 31, 2022	$	386,083		$	270,707		$	115,376		$	-

		Year Ended December 31, 2021
		Total			New York			San Francisco			Other
PGRE's share of Cash NOI for the year ended December 31, 2021		$	377,160		$	255,654		$	128,155		$	(6,649	)
	Acquisitions / Redevelopment (3)		(2,004	)		(2,004	)		-			-
	Lease termination income		(1,745	)		(161	)		(1,584	)		-
	Other, net		6,142			(296	)		(211	)		6,649
PGRE's share of Same Store Cash NOI for the year ended
	December 31, 2021	$	379,553		$	253,193		$	126,360		$	-
Increase (decrease) in PGRE's share of Same Store Cash NOI		$	6,530		$	17,514		$	(10,984	)	$	-
% Increase (decrease)			1.7	%		6.9	%		(8.7	%)

(1)See page 48 for our definition of this measure.

(2)Represents our share of Cash NOI attributable to 1600 Broadway for the months in which it was not owned by us in both reporting periods.

(3)Represents our share of Cash NOI attributable to 60 Wall Street which was taken "out-of-service" for redevelopment.

- 19 -

  SAME STORE RESULTS

(unaudited and in thousands)

SAME STORE NOI (1)			Year Ended December 31, 2022
			Total			New York			San Francisco			Other
	PGRE's share of NOI for the year ended December 31, 2022		$	397,088		$	272,197		$	130,557		$	(5,666	)
		Acquisitions / Redevelopment (2) (3)		(453	)		(453	)		-			-
		Lease termination income		(1,875	)		(1,875	)		-			-
		Other, net		7,626			2,135			(175	)		5,666
	PGRE's share of Same Store NOI for the year ended
		December 31, 2022	$	402,386		$	272,004		$	130,382		$	-

		Year Ended December 31, 2021
		Total			New York			San Francisco			Other
PGRE's share of NOI for the year ended December 31, 2021		$	383,788		$	252,495		$	137,942		$	(6,649	)
	Acquisitions / Redevelopment (3)		(1,612	)		(1,612	)		-			-
	Lease termination income		(1,745	)		(161	)		(1,584	)		-
	Other, net		6,311			(134	)		(204	)		6,649
PGRE's share of Same Store NOI for the year ended
	December 31, 2021	$	386,742		$	250,588		$	136,154		$	-
Increase (decrease) in PGRE's share of Same Store NOI		$	15,644		$	21,416		$	(5,772	)	$	-
% Increase (decrease)			4.0	%		8.5	%		(4.2	%)

(1)See page 48 for our definition of this measure.

(2)Represents our share of NOI attributable to 1600 Broadway for the months in which it was not owned by us in both reporting periods.

(3)Represents our share of NOI attributable to 60 Wall Street which was taken "out-of-service" for redevelopment.

- 20 -

  CONSOLIDATED JOINT VENTURES AND FUND – BALANCE SHEETS

(unaudited and in thousands)

		As of December 31, 2022
		Consolidated Joint Ventures								Consolidated Funds
		Total Consolidated		1633		One Market		300 Mission		Total Consolidated				Residential
		Joint Ventures		Broadway		Plaza		Street		Funds		Fund X (1)		Development Fund
PGRE Ownership				90.0%		49.0%		31.1%				13.0%		7.4%
Assets:
	Real estate, net	$	3,364,482	$	1,718,436	$	1,167,906	$	478,140	$	-	$	-	$	-
	Cash and cash equivalents		139,579		60,556		41,396		37,627		3,551		199		3,352
	Restricted cash		1,316		78		1,238		-		-		-		-
	Accounts and other receivables		9,997		8,340		984		673		3,650		-		3,650
	Real estate related fund investments		-		-		-		-		105,369		105,369		-
	Investments in unconsolidated    joint ventures		-		-		-		-		77,961		-		77,961
	Deferred rent receivable		197,658		105,880		67,377		24,401		-		-		-
	Deferred charges, net		49,485		24,696		17,255		7,534		-		-		-
	Intangible assets, net		50,553		41,197		8,175		1,181		-		-		-
	Other assets		6,228		655		5,105		468		3,632		201		3,431
Total Assets		$	3,819,298	$	1,959,838	$	1,309,436	$	550,024	$	194,163	$	105,769	$	88,394
Liabilities:
	Notes and mortgages payable, net	$	2,489,902	$	1,243,112	$	973,790	$	273,000	$	-	$	-	$	-
	Accounts payable and accrued    expenses		61,407		19,682		33,297		8,428		85		34		51
	Intangible liabilities, net		21,936		13,949		7,491		496		-		-		-
	Other liabilities		5,803		1,185		4,563		55		248		14		234
Total Liabilities			2,579,048		1,277,928		1,019,141		281,979		333		48		285
Equity:
	Paramount Group, Inc. equity		838,132		613,203		142,315		82,614		20,455		13,766		6,689
	Noncontrolling interests		402,118		68,707		147,980		185,431		173,375		91,955		81,420
Total Equity			1,240,250		681,910		290,295		268,045		193,830		105,721		88,109
Total Liabilities and Equity		$	3,819,298	$	1,959,838	$	1,309,436	$	550,024	$	194,163	$	105,769	$	88,394

(1)Prior to December 12, 2022, we owned an 8.2% interest in Paramount Group Real Estate Fund X, LP ("Fund X"), which was accounted for under the equity method of accounting. On December 12, 2022, we increased our ownership in Fund X to 13.0%, which required us to consolidate our investment in Fund X into our consolidated financial statements.

- 21 -

  CONSOLIDATED JOINT VENTURES AND FUND – BALANCE SHEETS

(unaudited and in thousands)

		As of December 31, 2021
		Consolidated Joint Ventures								Consolidated Fund
		Total Consolidated		1633		One Market		300 Mission		Residential
		Joint Ventures		Broadway		Plaza		Street		Development Fund
PGRE Ownership				90.0%		49.0%		31.1%		7.4%
Assets:
	Real estate, net	$	3,415,735	$	1,760,664	$	1,165,807	$	489,264	$	-
	Cash and cash equivalents		193,905		91,514		63,566		38,825		2,933
	Restricted cash		1,316		78		1,238		-		-
	Accounts and other receivables		6,677		5,306		516		855		124
	Investments in unconsolidated joint ventures		-		-		-		-		76,428
	Deferred rent receivable		197,794		114,558		60,405		22,831		-
	Deferred charges, net		53,013		27,004		17,463		8,546		-
	Intangible assets, net		62,380		48,834		11,001		2,545		-
	Other assets		6,092		644		5,054		394		9,459
Total Assets		$	3,936,912	$	2,048,602	$	1,325,050	$	563,260	$	88,944
Liabilities:
	Notes and mortgages payable, net	$	2,487,871	$	1,242,117	$	972,754	$	273,000	$	-
	Accounts payable and accrued expenses		54,675		21,782		23,775		9,118		63
	Intangible liabilities, net		27,674		16,006		10,994		674		-
	Other liabilities		6,427		1,994		4,430		3		-
Total Liabilities			2,576,647		1,281,899		1,011,953		282,795		63
Equity:
	Paramount Group, Inc. equity		931,432		691,275		153,487		86,670		6,956
	Noncontrolling interests		428,833		75,428		159,610		193,795		81,925
Total Equity			1,360,265		766,703		313,097		280,465		88,881
Total Liabilities and Equity		$	3,936,912	$	2,048,602	$	1,325,050	$	563,260	$	88,944

- 22 -

  CONSOLIDATED JOINT VENTURES AND FUND - OPERATING RESULTS

(unaudited and in thousands)

		Three Months Ended December 31, 2022
		Consolidated Joint Ventures												Consolidated Funds
		Total Consolidated			1633			One Market			300 Mission			Total Consolidated					Residential
		Joint Ventures			Broadway			Plaza			Street			Funds			Fund X (1)		Development Fund
Total revenues		$	93,584		$	48,314		$	33,306		$	11,964		$	-		$	-	$	-
Total operating expenses			32,264			18,310			10,019			3,935			-			-		-
Net operating income (2)			61,320			30,004			23,287			8,029			-			-		-
Depreciation and amortization			(29,518	)		(14,140	)		(11,411	)		(3,967	)		-			-		-
Income from real estate related fund investments			-			-			-			-			483			483		-
Loss from unconsolidated joint ventures			-			-			-			-			(1,393	)		-		(1,393	)
Interest and other income, net			817			428			216			173			84			-		84
Interest and debt expense			(22,604	)		(9,808	)		(10,304	)		(2,492	)		-			-		-
Income (loss) before income taxes			10,015			6,484			1,788			1,743			(826	)		483		(1,309	)
Income tax expense			(6	)		(6	)		-			-			-			-		-
Net income (loss)		$	10,009		$	6,478		$	1,788		$	1,743		$	(826	)	$	483	$	(1,309	)
PGRE's share
Ownership		Total			90.0%			49.0%			31.1%			Total			13.0%		7.4%
	Net income (loss)	$	7,234		$	5,827		$	869		$	538		$	(161	)	$	63	$	(224	)
	Add: Management fee income		1,177			429			179			569			-			-		-
	PGRE's share of net income (loss)		8,411			6,256			1,048			1,107			(161	)		63		(224	)
	Add: Real estate depreciation and amortization		19,551			12,726			5,591			1,234			-			-		-
	FFO (2)		27,962			18,982			6,639			2,341			(161	)		63		(224	)
	Less: FFO attributable to One Steuart Lane		-			-			-			-			103			-		103
	Core FFO (2)	$	27,962		$	18,982		$	6,639		$	2,341		$	(58	)	$	63	$	(121	)
Noncontrolling interests' share
Ownership		Total			10.0%			51.0%			68.9%			Total			87.0%		92.6%
	Net income (loss)	$	2,775		$	651		$	919		$	1,205		$	(665	)	$	420	$	(1,085	)
	Less: Management fee expense		(1,177	)		(429	)		(179	)		(569	)		-			-		-
	Net income (loss) attributable to    noncontrolling interests		1,598			222			740			636			(665	)		420		(1,085	)
	Add: Real estate depreciation and amortization		9,967			1,414			5,820			2,733			6			-		6
	FFO (2)		11,565			1,636			6,560			3,369			(659	)		420		(1,079	)
	Less: FFO attributable to One Steuart Lane		-			-			-			-			1,284			-		1,284
	Core FFO (2)	$	11,565		$	1,636		$	6,560		$	3,369		$	625		$	420	$	205

(1)Represents the results of operations from the date of consolidation through December 31, 2022.

(2)See page 48 for our definition of this measure.

- 23 -

  CONSOLIDATED JOINT VENTURES AND FUND - OPERATING RESULTS

(unaudited and in thousands)

		Three Months Ended December 31, 2021
		Consolidated Joint Ventures												Consolidated Fund
		Total Consolidated			1633			One Market			300 Mission			Residential
		Joint Ventures			Broadway			Plaza			Street			Development Fund
Total revenues		$	98,523		$	49,620		$	35,517		$	13,386		$	-
Total operating expenses			30,948			18,282			8,820			3,846			-
Net operating income (1)			67,575			31,338			26,697			9,540			-
Depreciation and amortization			(28,467	)		(14,028	)		(9,951	)		(4,488	)		-
Loss from unconsolidated joint ventures			-			-			-			-			(460	)
Interest and other income (loss), net			28			(3	)		28			3			108
Interest and debt expense			(22,603	)		(9,808	)		(10,304	)		(2,491	)		-
Net income (loss)		$	16,533		$	7,499		$	6,470		$	2,564		$	(352	)
PGRE's share
Ownership		Total			90.0%			49.0%			31.1%			7.4%
	Net income (loss)	$	10,708		$	6,742		$	3,170		$	796		$	(66	)
	Add: Management fee income		1,211			429			208			574			-
	PGRE's share of net income (loss)		11,919			7,171			3,378			1,370			(66	)
	Add: Real estate depreciation and amortization		18,894			12,623			4,877			1,394			-
	FFO (1)		30,813			19,794			8,255			2,764			(66	)
	Less: FFO attributable to One Steuart Lane		-			-			-			-			34
	Core FFO (1)	$	30,813		$	19,794		$	8,255		$	2,764		$	(32	)
Noncontrolling interests' share
Ownership		Total			10.0%			51.0%			68.9%			92.6%
	Net income (loss)	$	5,825		$	757		$	3,300		$	1,768		$	(286	)
	Less: Management fee expense		(1,211	)		(429	)		(208	)		(574	)		-
	Net income (loss) attributable to noncontrolling interests		4,614			328			3,092			1,194			(286	)
	Add: Real estate depreciation and amortization		9,573			1,405			5,074			3,094			7
	FFO (1)		14,187			1,733			8,166			4,288			(279	)
	Less: FFO attributable to One Steuart Lane		-			-			-			-			419
	Core FFO (1)	$	14,187		$	1,733		$	8,166		$	4,288		$	140

(1)See page 48 for our definition of these measures.

- 24 -

  CONSOLIDATED JOINT VENTURES AND FUND - OPERATING RESULTS

(unaudited and in thousands)

		Year Ended December 31, 2022
		Consolidated Joint Ventures												Consolidated Funds
		Total Consolidated			1633			One Market			300 Mission			Total Consolidated					Residential
		Joint Ventures			Broadway			Plaza			Street			Funds			Fund X (1)		Development Fund
Total revenues		$	386,858		$	195,660		$	143,275		$	47,923		$	-		$	-	$	-
Total operating expenses			130,362			74,926			40,673			14,763			-			-		-
Net operating income (2)			256,496			120,734			102,602			33,160			-			-		-
Depreciation and amortization			(113,329	)		(56,701	)		(40,441	)		(16,187	)		-			-		-
Income from real estate related fund investments			-			-			-			-			483			483		-
Loss from unconsolidated joint ventures			-			-			-			-			(4,696	)		-		(4,696	)
Interest and other income, net			1,380			711			395			274			409			-		409
Interest and debt expense			(89,770	)		(38,920	)		(40,885	)		(9,965	)		-			-		-
Income (loss) before income taxes			54,777			25,824			21,671			7,282			(3,804	)		483		(4,287	)
Income tax expense			(17	)		(13	)		(2	)		(2	)		(2	)		-		(2	)
Net income (loss)		$	54,760		$	25,811		$	21,669		$	7,280		$	(3,806	)	$	483	$	(4,289	)
PGRE's share
Ownership		Total			90.0%			49.0%			31.1%			Total			13.0%		7.4%
	Net income (loss)	$	36,094		$	23,228		$	10,611		$	2,255		$	(464	)	$	63	$	(527	)
	Add: Management fee income		4,685			1,694			743			2,248			-			-		-
	PGRE's share of net income (loss)		40,779			24,922			11,354			4,503			(464	)		63		(527	)
	Add: Real estate depreciation and amortization		75,877			51,031			19,815			5,031			2			-		2
	FFO (2)		116,656			75,953			31,169			9,534			(462	)		63		(525	)
	Less: FFO attributable to One Steuart Lane		-			-			-			-			346			-		346
	Core FFO (2)	$	116,656		$	75,953		$	31,169		$	9,534		$	(116	)	$	63	$	(179	)
Noncontrolling interests' share
Ownership		Total			10.0%			51.0%			68.9%			Total			87.0%		92.6%
	Net income (loss)	$	18,666		$	2,583		$	11,058		$	5,025		$	(3,342	)	$	420	$	(3,762	)
	Less: Management fee expense		(4,685	)		(1,694	)		(743	)		(2,248	)		-			-		-
	Net income (loss) attributable to    noncontrolling interests		13,981			889			10,315			2,777			(3,342	)		420		(3,762	)
	Add: Real estate depreciation and amortization		37,452			5,670			20,626			11,156			24			-		24
	FFO (2)		51,433			6,559			30,941			13,933			(3,318	)		420		(3,738	)
	Less: FFO attributable to One Steuart Lane		-			-			-			-			4,324			-		4,324
	Core FFO (2)	$	51,433		$	6,559		$	30,941		$	13,933		$	1,006		$	420	$	586

(1)Represents the results of operations from the date of consolidation through December 31, 2022.

(2)See page 48 for our definition of this measure.

- 25 -

  CONSOLIDATED JOINT VENTURES AND FUND - OPERATING RESULTS

(unaudited and in thousands)

		Year Ended December 31, 2021
		Consolidated Joint Ventures												Consolidated Fund
		Total Consolidated			1633			One Market			300 Mission			Residential
		Joint Ventures			Broadway			Plaza			Street			Development Fund
Total revenues		$	394,977		$	191,740		$	144,202		$	59,035		$	-
Total operating expenses			122,615			70,949			37,085			14,581			-
Net operating income (1)			272,362			120,791			107,117			44,454			-
Depreciation and amortization			(116,922	)		(56,233	)		(41,161	)		(19,528	)		-
Income from unconsolidated joint ventures			-			-			-			-			2,678
Interest and other income (loss), net			96			(23	)		112			7			435
Interest and debt expense			(89,405	)		(38,957	)		(40,885	)		(9,563	)		-
Income before income taxes			66,131			25,578			25,183			15,370			3,113
Income tax expense			(14	)		(12	)		(2	)		-			(2	)
Net income		$	66,117		$	25,566		$	25,181		$	15,370		$	3,111
PGRE's share
Ownership		Total			90.0%			49.0%			31.1%			7.4%
	Net income	$	40,117		$	23,012		$	12,333		$	4,772		$	218
	Add: Management fee income		4,462			1,679			790			1,993			-
	PGRE's share of net income		44,579			24,691			13,123			6,765			218
	Add: Real estate depreciation and amortization		76,851			50,610			20,169			6,072			-
	FFO (1)		121,430			75,301			33,292			12,837			218
	Less: FFO attributable to One Steuart Lane		-			-			-			-			(215	)
	Core FFO (1)	$	121,430		$	75,301		$	33,292		$	12,837		$	3
Noncontrolling interests' share
Ownership		Total			10.0%			51.0%			68.9%			92.6%
	Net income	$	26,000		$	2,554		$	12,848		$	10,598		$	2,893
	Less: Management fee expense		(4,462	)		(1,679	)		(790	)		(1,993	)		-
	Net income attributable to noncontrolling interests		21,538			875			12,058			8,605			2,893
	Add: Real estate depreciation and amortization		40,071			5,623			20,992			13,456			11
	FFO (1)		61,609			6,498			33,050			22,061			2,904
	Less: FFO attributable to One Steuart Lane		-			-			-			-			(2,699	)
	Core FFO (1)	$	61,609		$	6,498		$	33,050		$	22,061		$	205

(1)See page 48 for our definition of these measures.

- 26 -

  UNCONSOLIDATED JOINT VENTURES – BALANCE SHEETS

(unaudited and in thousands)

		As of December 31, 2022
				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	$	2,377,084	$	212,002		$	627,169	$	359,405	$	149,653		$	1,028,855
	Cash and cash equivalents		140,818		28,335			38,918		15,322		3,950			54,293
	Restricted cash		111,722		5,472			-		-		2,431			103,819
	Accounts and other receivables		4,830		3,642			453		326		17			392
	Deferred rent receivable		31,372		17,921			5,422		3,507		2,992			1,530
	Deferred charges, net		13,026		9,566			1,430		951		1,079			-
	Intangible assets, net		69,599		-			14,363		10,980		2,583			41,673
	For-sale residential condominium units (2)		322,232		-			-		-		-			322,232
	Other assets		37,826		189			22,651		211		1,564			13,211
Total Assets		$	3,108,509	$	277,127		$	710,406	$	390,702	$	164,269		$	1,566,005
Liabilities:
	Notes and mortgages payable, net	$	1,834,916	$	298,186		$	408,967	$	186,909	$	158,666		$	782,188
	Accounts payable and accrued expenses		47,302		5,620			10,768		3,264		4,262			23,388
	Intangible liabilities, net		10,972		-			2,331		7,327		1,314			-
	Other liabilities		3,481		176			232		246		244			2,583
Total Liabilities			1,896,671		303,982			422,298		197,746		164,486			808,159
Total Equity			1,211,838		(26,855	)		288,108		192,956		(217	)		757,846
Total Liabilities and Equity		$	3,108,509	$	277,127		$	710,406	$	390,702	$	164,269		$	1,566,005

(1)Represents 1600 Broadway, 60 Wall Street, Oder-Center, Germany and One Steuart Lane. In June 2022, 60 Wall Street was taken “out-of-service” for redevelopment.

(2)Represents the cost of residential condominium units at One Steuart Lane that are available for sale.

- 27 -

  UNCONSOLIDATED JOINT VENTURES – BALANCE SHEETS

(unaudited and in thousands)

		As of December 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	$	2,246,152	$	212,155		$	644,991	$	368,202	$	216,073	$	804,731
	Cash and cash equivalents		84,672		19,150			27,727		14,684		3,334		19,777
	Restricted cash		132,238		13,488			-		-		3,518		115,232
	Accounts and other receivables		3,144		2,512			113		276		120		123
	Deferred rent receivable		28,939		18,130			5,428		2,274		2,908		199
	Deferred charges, net		12,304		9,399			1,196		366		1,343		-
	Intangible assets, net		58,590		-			26,671		16,396		4,157		11,366
	For-sale residential condominium units (2)		359,638		-			-		-		-		359,638
	Other assets		2,259		189			543		191		110		1,226
Total Assets		$	2,927,936	$	275,023		$	706,669	$	402,389	$	231,563	$	1,312,292
Liabilities:
	Notes and mortgages payable, net	$	1,791,404	$	297,775		$	406,881	$	186,750	$	152,358	$	747,640
	Accounts payable and accrued expenses		52,813		5,615			11,471		4,841		5,115		25,771
	Intangible liabilities, net		18,397		-			5,179		11,033		2,185		-
	Other liabilities		8,284		291			6,380		138		226		1,249
Total Liabilities			1,870,898		303,681			429,911		202,762		159,884		774,660
Total Equity			1,057,038		(28,658	)		276,758		199,627		71,679		537,632
Total Liabilities and Equity		$	2,927,936	$	275,023		$	706,669	$	402,389	$	231,563	$	1,312,292

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

(2)Represents the cost of residential condominium units at One Steuart Lane that are available for sale.

- 28 -

  UNCONSOLIDATED JOINT VENTURES – OPERATING RESULTS

(unaudited and in thousands)

		Three Months Ended December 31, 2022
					712 Fifth			Market			55 Second			111 Sutter
		Total			Avenue			Center			Street			Street			Other (1)
Total revenues		$	41,424		$	11,974		$	14,353		$	8,055		$	3,825		$	3,217
Total operating expenses			23,278			5,437			7,558			3,598			1,944			4,741
Net operating income (2)			18,146			6,537			6,795			4,457			1,881			(1,524	)
Depreciation and amortization			(17,809	)		(2,801	)		(7,618	)		(4,128	)		(2,117	)		(1,145	)
Interest and other income (loss), net			504			182			244			79			11			(12	)
Interest and debt expense			(14,273	)		(2,702	)		(3,514	)		(1,856	)		(2,524	)		(3,677	)
Real estate impairment loss			(64,663	)		-			-			-			(64,663	)		-
(Loss) income before income taxes			(78,095	)		1,216			(4,093	)		(1,448	)		(67,412	)		(6,358	)
Income tax expense			(6	)		-			-			(2	)		-			(4	)
Net (loss) income		$	(78,101	)	$	1,216		$	(4,093	)	$	(1,450	)	$	(67,412	)	$	(6,362	)
PGRE's share
Ownership		Total			50.0%			67.0%			44.1%			49.0%			Various
	Net (loss) income	$	(37,327	)	$	608		$	(2,744	)	$	(645	)	$	(33,030	)	$	(1,516	)
	Less: Step-up basis adjustment		(37	)		-			-			(2	)		-			(35	)
	Less: Adjustments to equity in earnings for    distributions from unconsolidated joint ventures		(561	)		(608	)		-			-			47			-
	PGRE's share of net loss		(37,925	)		-			(2,744	)		(647	)		(32,983	)		(1,551	)
	Add: Real estate depreciation and amortization		9,509			1,400			5,104			1,822			1,038			145
	Add: Real estate impairment loss		31,685			-			-			-			31,685			-
	FFO (2)		3,269			1,400			2,360			1,175			(260	)		(1,406	)
	Add: Adjustments to equity in earnings for    distributions from unconsolidated joint ventures		561			608			-			-			(47	)		-
	Less: FFO attributable to One Steuart Lane		1,387			-			-			-			-			1,387
	Core FFO (2)	$	5,217		$	2,008		$	2,360		$	1,175		$	(307	)	$	(19	)
Joint Venture Partners' share
Ownership		Total			50.0%			33.0%			55.9%			51.0%			Various
	Net (loss) income	$	(40,774	)	$	608		$	(1,349	)	$	(805	)	$	(34,382	)	$	(4,846	)
	Add: Real estate depreciation and amortization		8,337			1,401			2,514			2,308			1,079			1,035
	Add: Real estate impairment loss		32,978			-			-			-			32,978			-
	FFO (2)		541			2,009			1,165			1,503			(325	)		(3,811	)
	Less: FFO attributable to One Steuart Lane		2,575			-			-			-			-			2,575
	Core FFO (2)	$	3,116		$	2,009		$	1,165		$	1,503		$	(325	)	$	(1,236	)

(1)Represents 1600 Broadway, 60 Wall Street, Oder-Center, Germany and One Steuart Lane. In June 2022, 60 Wall Street was taken “out-of-service” for redevelopment.

(2)See page 48 for our definition of these measures.

- 29 -

  UNCONSOLIDATED JOINT VENTURES – OPERATING RESULTS

(unaudited and in thousands)

		Three Months Ended December 31, 2021
					712 Fifth			Market			55 Second			111 Sutter
		Total			Avenue			Center			Street			Street			Other (1)
Total revenues		$	103,706		$	10,121		$	14,578		$	8,461		$	3,686		$	66,860		(2)
Total operating expenses			66,870			5,782			7,032			3,440			1,838			48,778		(2)
Net operating income (3)			36,836			4,339			7,546			5,021			1,848			18,082
Depreciation and amortization			(26,180	)		(2,656	)		(7,953	)		(4,818	)		(1,839	)		(8,914	)
Interest and other (loss) income, net			(28	)		(6	)		(7	)		(12	)		(4	)		1
Interest and debt expense			(18,358	)		(2,736	)		(3,428	)		(1,856	)		(1,608	)		(8,730	)
Net (loss) income		$	(7,730	)	$	(1,059	)	$	(3,842	)	$	(1,665	)	$	(1,603	)	$	439
PGRE's share
Ownership		Total			50.0%			67.0%			44.1%			49.0%			Various
	Net loss	$	(4,785	)	$	(529	)	$	(2,576	)	$	(738	)	$	(784	)	$	(158	)
	Less: Step-up basis adjustment		(262	)		-			-			(3	)		-			(259	)
	Add: Adjustments to equity in earnings for    distributions from an unconsolidated joint venture		961			961			-			-			-			-
	PGRE's share of net (loss) income		(4,086	)		432			(2,576	)		(741	)		(784	)		(417	)
	Add: Real estate depreciation and amortization		10,167			1,328			5,328			2,124			902			485
	FFO (3)		6,081			1,760			2,752			1,383			118			68
	Less: Adjustments to equity in earnings for    distributions from an unconsolidated joint venture		(961	)		(961	)		-			-			-			-
	Less: FFO attributable to One Steuart Lane		453			-			-			-			-			453
	Core FFO (3)	$	5,573		$	799		$	2,752		$	1,383		$	118		$	521
Joint Venture Partners' share
Ownership		Total			50.0%			33.0%			55.9%			51.0%			Various
	Net (loss) income	$	(2,945	)	$	(530	)	$	(1,266	)	$	(927	)	$	(819	)	$	597
	Add: Real estate depreciation and amortization		16,055			1,328			2,625			2,697			937			8,468
	FFO (3)		13,110			798			1,359			1,770			118			9,065
	Less: FFO attributable to One Steuart Lane		434			-			-			-			-			434
	Core FFO (3)	$	13,544		$	798		$	1,359		$	1,770		$	118		$	9,499

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

(2)Includes proceeds and cost of sales from the sale of residential condominium units at One Steuart Lane.

(3)See page 48 for our definition of these measures.

- 30 -

  UNCONSOLIDATED JOINT VENTURES – OPERATING RESULTS

(unaudited and in thousands)

		Year Ended December 31, 2022
					712 Fifth			Market			55 Second			111 Sutter
		Total			Avenue			Center			Street			Street			Other (1)
Total revenues		$	259,881		$	44,813		$	57,858		$	31,182		$	15,192		$	110,836		(2)
Total operating expenses			152,313			21,617			28,100			13,621			7,164			81,811		(2)
Net operating income (3)			107,568			23,196			29,758			17,561			8,028			29,025
Depreciation and amortization			(85,949	)		(10,900	)		(31,875	)		(16,817	)		(7,687	)		(18,670	)
Interest and other income (loss), net			991			257			365			91			(1	)		279
Interest and debt expense			(62,173	)		(10,749	)		(13,759	)		(7,426	)		(7,589	)		(22,650	)
Real estate impairment loss			(64,663	)		-			-			-			(64,663	)		-
(Loss) income before income taxes			(104,226	)		1,804			(15,511	)		(6,591	)		(71,912	)		(12,016	)
Income tax expense			(60	)		-			(3	)		(36	)		(4	)		(17	)
Net (loss) income		$	(104,286	)	$	1,804		$	(15,514	)	$	(6,627	)	$	(71,916	)	$	(12,033	)
PGRE's share
Ownership		Total			50.0%			67.0%			44.1%			49.0%			Various
	Net (loss) income	$	(52,123	)	$	902		$	(10,405	)	$	(2,932	)	$	(35,237	)	$	(4,451	)
	Less: Step-up basis adjustment		(273	)		-			-			(11	)		-			(262	)
	Less: Adjustments to equity in earnings for    distributions from unconsolidated joint ventures		(855	)		(902	)		-			-			47			-
	PGRE's share of net loss		(53,251	)		-			(10,405	)		(2,943	)		(35,190	)		(4,713	)
	Add: Real estate depreciation and amortization		39,272			5,450			21,356			7,426			3,767			1,273
	Add: Real estate impairment loss		31,685			-			-			-			31,685			-
	FFO (3)		17,706			5,450			10,951			4,483			262			(3,440	)
	Add: Adjustments to equity in earnings for    distributions from unconsolidated joint ventures		855			902			-			-			(47	)		-
	Less: FFO attributable to One Steuart Lane		4,670			-			-			-			-			4,670
	Core FFO (3)	$	23,231		$	6,352		$	10,951		$	4,483		$	215		$	1,230
Joint Venture Partners' share
Ownership		Total			50.0%			33.0%			55.9%			51.0%			Various
	Net (loss) income	$	(52,163	)	$	902		$	(5,109	)	$	(3,695	)	$	(36,679	)	$	(7,582	)
	Add: Real estate depreciation and amortization		46,950			5,450			10,519			9,402			3,920			17,659
	Add: Real estate impairment loss		32,978			-			-			-			32,978			-
	FFO (3)		27,765			6,352			5,410			5,707			219			10,077
	Less: FFO attributable to One Steuart Lane		8,371			-			-			-			-			8,371
	Core FFO (3)	$	36,136		$	6,352		$	5,410		$	5,707		$	219		$	18,448

(1)Represents 1600 Broadway, 60 Wall Street, Oder-Center, Germany and One Steuart Lane. In June 2022, 60 Wall Street was taken “out-of-service” for redevelopment.

(2)Includes proceeds and cost of sales from the sale of residential condominium units at One Steuart Lane.

(3)See page 48 for our definition of these measures.

- 31 -

  UNCONSOLIDATED JOINT VENTURES – OPERATING RESULTS

(unaudited and in thousands)

		Year Ended December 31, 2021
					712 Fifth			Market			55 Second			111 Sutter
		Total			Avenue			Center			Street			Street			Other (1)
Total revenues		$	369,125		$	40,426		$	55,052		$	33,279		$	15,284		$	225,084		(2)
Total operating expenses			220,396			23,342			26,283			13,079			6,965			150,727		(2)
Net operating income (3)			148,729			17,084			28,769			20,200			8,319			74,357
Depreciation and amortization			(107,079	)		(10,740	)		(32,806	)		(19,265	)		(7,450	)		(36,818	)
Interest and other loss, net			(111	)		(12	)		(44	)		(30	)		(14	)		(11	)
Interest and debt expense			(63,493	)		(10,830	)		(13,583	)		(7,426	)		(6,277	)		(25,377	)
(Loss) income before income taxes			(21,954	)		(4,498	)		(17,664	)		(6,521	)		(5,422	)		12,151
Income tax expense			(32	)		-			(5	)		(22	)		(3	)		(2	)
Net (loss) income		$	(21,986	)	$	(4,498	)	$	(17,669	)	$	(6,543	)	$	(5,425	)	$	12,149
PGRE's share
Ownership		Total			50.0%			67.0%			44.1%			49.0%			Various
	Net (loss) income	$	(16,491	)	$	(2,249	)	$	(11,848	)	$	(2,902	)	$	(2,658	)	$	3,166
	Less: Step-up basis adjustment		(389	)		-			-			(10	)		-			(379	)
	Less: Adjustments to equity in earnings for    contributions to an unconsolidated joint venture		(8,016	)		(8,016	)		-			-			-			-
	PGRE's share of net (loss) income		(24,896	)		(10,265	)		(11,848	)		(2,912	)		(2,658	)		2,787
	Add: Real estate depreciation and amortization		41,537			5,370			21,980			8,494			3,651			2,042
	FFO (3)		16,641			(4,895	)		10,132			5,582			993			4,829
	Add: Adjustments to equity in earnings for    contributions to an unconsolidated joint venture		8,016			8,016			-			-			-			-
	Less: FFO attributable to One Steuart Lane		(2,914	)		-			-			-			-			(2,914	)
	Core FFO (3)	$	21,743		$	3,121		$	10,132		$	5,582		$	993		$	1,915
Joint Venture Partners' share
Ownership		Total			50.0%			33.0%			55.9%			51.0%			Various
	Net (loss) income	$	(5,495	)	$	(2,249	)	$	(5,821	)	$	(3,641	)	$	(2,767	)	$	8,983
	Add: Real estate depreciation and amortization		65,711			5,370			10,826			10,781			3,799			34,935
	FFO (3)		60,216			3,121			5,005			7,140			1,032			43,918
	Less: FFO attributable to One Steuart Lane		(5,819	)		-			-			-			-			(5,819	)
	Core FFO (3)	$	54,397		$	3,121		$	5,005		$	7,140		$	1,032		$	38,099

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

(2)Includes proceeds and cost of sales from the sale of residential condominium units at One Steuart Lane.

(3)See page 48 for our definition of these measures.

- 32 -

  CAPITAL STRUCTURE

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

			As of December 31, 2022
Debt:
	Consolidated debt:
		Notes and mortgages payable (1)	$	3,858,000
		Revolving Credit Facility		-
				3,858,000
	Less:
		Noncontrolling interests' share of consolidated debt (2)		(810,335	)
	Add:
		PGRE's share of unconsolidated joint venture debt (3)		624,764
	PGRE's Share of Total Debt (4)			3,672,429

		Shares / Units		Share Price as of
Equity:		Outstanding		December 31, 2022
	Common stock		216,559,406	$	5.94		1,286,363
	Operating Partnership units		14,586,411		5.94		86,644
	Total equity		231,145,817		5.94		1,373,007
Total Market Capitalization						$	5,045,436

(1)Represents contractual amounts 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, 1600 Broadway, 60 Wall Street and Oder-Center, Germany.

(4)See page 48 for our definition of this measure.

- 33 -

  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		860,000			3.76	%		500,000			2.46	%		360,000			5.56	%
	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		273,000			3.65	%		273,000			3.65	%		-			-
	Revolving Credit Facility		-			-			-			-			-			-
Total consolidated debt			3,858,000			3.58	%		3,498,000			3.37	%		360,000			5.56	%
Noncontrolling interests' share			(810,335	)		3.78	%		(810,335	)		3.78	%		-			-
PGRE's share of consolidated debt		$	3,047,665			3.52	%	$	2,687,665			3.25	%	$	360,000			5.56	%
Unconsolidated Joint Venture Debt:
	712 Fifth Avenue	$	300,000			3.39	%	$	300,000			3.39	%	$	-			-
	Market Center		410,835			3.12	%		402,000			3.07	%		8,835			5.62	%
	55 Second Street		187,500			3.88	%		187,500			3.88	%		-			-
	111 Sutter Street		158,771			6.28	%		-			-			158,771			6.28	%
	1600 Broadway (1)		98,000			3.45	%		98,000			3.45	%		-			-
	60 Wall Street		575,000			5.95	%		-			-			575,000			5.95	%
	Oder-Center, Germany		12,777			2.79	%		-			-			12,777			2.79	%
Total unconsolidated debt			1,742,883			4.49	%		987,500			3.36	%		755,383			5.96	%
Joint venture partners' share			(1,118,119	)		4.86	%		(476,475	)		3.42	%		(641,644	)		5.93	%
PGRE's share of unconsolidated debt		$	624,764			3.82	%	$	511,025			3.30	%	$	113,739			6.12	%
PGRE's share of Total Debt (2)		$	3,672,429			3.57	%	$	3,198,690			3.26	%	$	473,739			5.70	%

Revolving Credit Facility Covenants: (3)		Required	Actual			Debt Composition (at PGRE's share):		Amount		%
	Total Debt / Total Assets	Less than 60%		44.8	%	Fixed rate debt:
	Secured Debt / Total Assets	Less than 50%		44.8	%		Consolidated fixed rate debt	$	2,687,665
	Fixed Charge Coverage	Greater than 1.5x	3.20x				Unconsolidated fixed rate debt		511,025
	Unsecured Debt / Unencumbered Assets	Less than 60%		0.0	%		PGRE's share of fixed rate debt		3,198,690		87.1	%
	Unencumbered Interest Coverage	Greater than 1.75x	48.75x			Variable rate debt:
							Consolidated variable rate debt		360,000
							Unconsolidated variable rate debt		113,739
							PGRE's share of variable rate debt		473,739		12.9	%
							PGRE's share of Total Debt (2)	$	3,672,429		100.0	%

(1)In connection with the acquisition of 1600 Broadway on February 24, 2022, the joint venture obtained a 10-year, $98,000 interest-only loan that has a fixed rate of 3.45%.

(2)See page 48 for our definition of this measure.

(3)This section presents ratios as of December 31, 2022 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.

- 34 -

  DEBT MATURITIES

(unaudited and in thousands)

Consolidated Debt:		2023				2024			2025			2026			2027			Thereafter			Total
	300 Mission Street	$	273,000		(1)	$	-		$	-		$	-		$	-		$	-		$	273,000
	One Market Plaza		-				975,000			-			-			-			-			975,000
	31 West 52nd Street		-				-			-			500,000			-			-			500,000
	1301 Avenue of the Americas		-				-			-			860,000			-			-			860,000
	1633 Broadway		-				-			-			-			-			1,250,000			1,250,000
	Revolving Credit Facility		-				-			-			-			-			-			-
Total consolidated debt			273,000				975,000			-			1,360,000			-			1,250,000			3,858,000
Noncontrolling interests' share			(188,097	)			(497,250	)		-			-			-			(124,988	)		(810,335	)
PGRE's share of consolidated debt		$	84,903			$	477,750		$	-		$	1,360,000		$	-		$	1,125,012		$	3,047,665
Unconsolidated Joint Venture Debt:
	60 Wall Street	$	575,000		(2)	$	-		$	-		$	-		$	-		$	-		$	575,000
	111 Sutter Street		158,771		(3)		-			-			-			-			-			158,771
	Market Center		-				-			410,835			-			-			-			410,835
	55 Second Street		-				-			-			187,500			-			-			187,500
	712 Fifth Avenue		-				-			-			-			300,000			-			300,000
	Oder-Center, Germany		-				-			-			-			-			12,777			12,777
	1600 Broadway (4)		-				-			-			-			-			98,000			98,000
Total unconsolidated debt			733,771				-			410,835			187,500			300,000			110,777			1,742,883
Joint venture partners' share			(627,165	)			-			(135,576	)		(104,831	)		(150,000	)		(100,547	)		(1,118,119	)
PGRE's share of unconsolidated debt		$	106,606			$	-		$	275,259		$	82,669		$	150,000		$	10,230		$	624,764
PGRE's Share of Total Debt (5)		$	191,509			$	477,750		$	275,259		$	1,442,669		$	150,000		$	1,135,242		$	3,672,429
Weighted average rate			5.06	%			4.03	%		3.12	%		3.78	%		3.39	%		2.99	%		3.57	%
% of debt maturing			5.2	%			13.0	%		7.5	%		39.3	%		4.1	%		30.9	%		100.0	%

(1)This loan matures in October 2023. We are exploring various alternatives to refinance this loan.

(2)This loan matures in February 2023 and provides for an one-year extension through February 2024. The joint venture is currently in discussion with the lender to extend this loan.

(3)This loan matures in March 2023 and has three one-year extension options, subject to certain tests. The joint venture is currently in discussion with the lender to modify and extend this loan.

(4)In connection with the acquisition of 1600 Broadway on February 24, 2022, the joint venture obtained a 10-year, $98,000 interest-only loan that has a fixed rate of 3.45%.

(5)See page 48 for our definition of this measure.

- 35 -

  PORTFOLIO SUMMARY – NEW YORK

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

											Annualized Rent (1)				Square Feet
		Paramount			%			%					Per		In		Out of
Property		Ownership			Leased (1)			Occupied (1)			Amount		Square Foot (2)		Service		Service		Total		Key Tenants
1633 Broadway
	Office		90.0	%		100.0	%		100.0	%	$	181,186	$	80.06		2,272,771		-		2,272,771	Allianz, Morgan Stanley, Warner Music Group, ICBC,
																					Showtime Networks, New Mountain Capital, MongoDB,
																					Bleacher Report, Kasowitz, Benson, Torres & Friedman
	Retail / Theater		90.0	%		96.6	%		86.2	%		9,531		73.58		253,609		-		253,609	Gershwin Theatre, Thespian Theatre, Equinox, Din Tai Fung
			90.0	%		99.7	%		98.6	%		190,717		79.98		2,526,380		-		2,526,380
1301 Avenue of the Americas
	Office		100.0	%		88.1	%		88.1	%		127,324		86.13		1,698,481		-		1,698,481	Credit Agricole, Norton Rose Fulbright, CohnReznick,
																					Swiss Re, Oaktree Capital, ArentFox Schiff,
																					O'Melveny & Myers, SVB Securities
	Retail / Amenity Center		100.0	%		89.8	%		89.8	%		2,573		185.11		50,722		-		50,722	Ocean Prime, Starbucks
			100.0	%		88.1	%		88.1	%		129,897		86.97		1,749,203		-		1,749,203
1325 Avenue of the Americas
	Office		100.0	%		94.2	%		94.2	%		50,247		67.52		809,689		-		809,689	McGraw Hill, Olshan Frome Wolosky, Hilton, Evercore
	Retail		100.0	%		100.0	%		100.0	%		1,415		86.68		15,609		-		15,609	La Grande Boucherie
			100.0	%		94.4	%		94.4	%		51,662		67.83		825,298		-		825,298
31 West 52nd Street
	Office		100.0	%		92.8	%		92.8	%		63,256		91.90		742,006		-		742,006	Clifford Chance, Pillsbury Winthrop Shaw Pittman,
																					Centerview Partners, Bracewell, Providence Equity Partners
	Retail		100.0	%		97.8	%		97.8	%		4,896		110.55		25,913		-		25,913	Fogo De Chao, MoMA Design Store
			100.0	%		93.0	%		93.0	%		68,152		92.57		767,919		-		767,919
900 Third Avenue
	Office		100.0	%		79.2	%		79.2	%		32,338		71.24		575,084		-		575,084	Goldman Sachs, Shiseido, Tannenbaum Helpern Syracuse &
																					Hirschtritt, Littler Mendelson
	Retail		100.0	%		81.7	%		81.7	%		1,295		97.31		16,144		-		16,144	Bank of America
			100.0	%		79.3	%		79.3	%		33,633		71.97		591,228		-		591,228
712 Fifth Avenue
	Office		50.0	%		83.9	%		75.5	%		40,530		117.30		457,580		-		457,580	CVC Advisors, Aberdeen Standard Investments, OMI
																					Management, Riverstone Holdings, Pictet Asset Management
	Retail		50.0	%		20.9	%		20.9	%		7,883		437.43		85,917		-		85,917	Harry Winston
			50.0	%		73.9	%		66.9	%		48,413		133.10		543,497		-		543,497
1600 Broadway (3)
	Retail		9.2	%		100.0	%		100.0	%		10,319		305.18		25,693		-		25,693	M&M's World
60 Wall Street (4)
	Office		5.0	%	N/A			N/A			N/A		N/A			-		1,625,483		1,625,483
	Subtotal / Weighted average					91.7	%		90.8	%	$	532,793	$	85.16		7,029,218		1,625,483		8,654,701
	PGRE's share					92.1	%		91.5	%	$	480,147	$	82.92		6,481,528		81,437		6,562,965

(1)See page 48 for our definition of this measure.

(2)Represents office and retail space only.

(3)Acquired on February 24, 2022.

(4)In June 2022, 60 Wall Street was taken “out-of-service” for redevelopment.

- 36 -

  PORTFOLIO SUMMARY – SAN FRANCISCO

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

											Annualized Rent (1)				Square Feet
		Paramount			%			%					Per		In		Out of
Property		Ownership			Leased (1)			Occupied (1)			Amount		Square Foot (2)		Service		Service		Total		Key Tenants
One Market Plaza
	Office		49.0	%		96.6	%		93.6	%	$	151,701	$	104.48		1,555,077		-		1,555,077	Google, Morgan Lewis & Bockius, Visa,
																					The Capital Group, Autodesk, Citigroup,
																					Duane Morris, Thoma Bravo, PJT Partners
	Retail		49.0	%		74.7	%		74.7	%		2,792		62.44		54,418		-		54,418	Starbucks, STK Steak House,
																					One Market Restaurant
			49.0	%		95.8	%		93.0	%		154,493		103.41		1,609,495		-		1,609,495
Market Center
	Office		67.0	%		79.5	%		79.5	%		54,022		92.24		737,911		-		737,911	Uber, Mindspace, Bank of Communications,
																					Crowe, Mayer Brown, Raymond James
	Retail		67.0	%		66.2	%		66.2	%		611		109.47		6,156		-		6,156	Amazon
			67.0	%		79.4	%		79.4	%		54,633		92.36		744,067		-		744,067
300 Mission Street
	Office		31.1	%		80.9	%		80.9	%		45,884		94.05		605,662		-		605,662	Autodesk, Glassdoor, Instacart
	Retail		31.1	%		88.5	%		88.5	%		2,818		63.42		49,172		-		49,172	Equinox
			31.1	%		81.4	%		81.4	%		48,702		91.55		654,834		-		654,834
One Front Street
	Office		100.0	%		97.0	%		95.8	%		55,425		91.29		634,898		-		634,898	First Republic, Coinbase, JLL, Cigna
	Retail		100.0	%		97.3	%		97.3	%		1,109		90.73		12,293		-		12,293	First Republic
			100.0	%		97.0	%		95.8	%		56,534		91.28		647,191		-		647,191
55 Second Street
	Office		44.1	%		85.7	%		85.7	%		26,112		82.49		370,319		-		370,319	KPMG, Intercom, Rippling, UKG
	Retail		44.1	%		100.0	%		100.0	%		937		112.27		7,480		-		7,480	Sutter West Bay Medical, Bluestone Lane
			44.1	%		86.0	%		86.0	%		27,049		83.18		377,799		-		377,799
111 Sutter Street
	Office		49.0	%		56.2	%		56.2	%		12,225		88.95		248,821		-		248,821	Turo, Natural Resource Defense Council
	Retail		49.0	%		86.7	%		86.7	%		1,760		69.27		29,249		-		29,249	24 Hour Fitness
			49.0	%		59.4	%		59.4	%		13,985		85.88		278,070		-		278,070
	Subtotal / Weighted average					87.8	%		86.5	%	$	355,396	$	95.41		4,311,456		-		4,311,456
	PGRE's share					88.9	%		87.7	%	$	202,768	$	94.91		2,440,885		-		2,440,885
Total / Weighted average						90.2	%		89.2	%	$	888,189	$	89.04		11,340,674		1,625,483		12,966,157
PGRE's share						91.3	%		90.4	%	$	682,915	$	86.20		8,922,413		81,437		9,003,850

(1)See page 48 for our definition of this measure.

(2)Represents office and retail space only.

- 37 -

  SAME STORE LEASED OCCUPANCY

(unaudited)

				As of December 31, 2022						As of September 30, 2022						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	%		99.7	%		99.7	%		99.7	%		99.7	%		-	%
1301 Avenue of the Americas		100.0	%		88.1	%		88.1	%		88.1	%		88.1	%		-	%
1325 Avenue of the Americas		100.0	%		94.4	%		94.4	%		94.4	%		94.4	%		-	%
31 West 52nd Street		100.0	%		93.0	%		93.0	%		93.0	%		93.0	%		-	%
900 Third Avenue		100.0	%		79.3	%		79.3	%		79.2	%		79.2	%		0.1	%
712 Fifth Avenue		50.0	%		73.9	%		73.9	%		73.6	%		73.6	%		0.3	%
1600 Broadway		9.2	%		100.0	%		100.0	%		100.0	%		100.0	%		-	%
60 Wall Street (2)		5.0	%	N/A				-	%	N/A				-	%		-	%
Weighted average					91.7	%		91.7	%		91.7	%		91.7	%		-	%
PGRE's share					92.1	%		92.1	%		92.1	%		92.1	%		-	%
San Francisco:
One Market Plaza		49.0	%		95.8	%		95.8	%		95.8	%		95.8	%		-	%
Market Center		67.0	%		79.4	%		79.4	%		81.0	%		81.0	%		(1.6	%)
300 Mission Street		31.1	%		81.4	%		81.4	%		81.4	%		81.4	%		-	%
One Front Street		100.0	%		97.0	%		97.0	%		97.0	%		97.0	%		-	%
55 Second Street		44.1	%		86.0	%		86.0	%		86.0	%		86.0	%		-	%
111 Sutter Street		49.0	%		59.4	%		59.4	%		62.1	%		62.1	%		(2.7	%)
Weighted average					87.8	%		87.8	%		88.2	%		88.2	%		(0.4	%)
PGRE's share					88.9	%		88.9	%		89.3	%		89.3	%		(0.4	%)
Weighted average					90.2	%		90.2	%		90.4	%		90.4	%		(0.2	%)
PGRE's share					91.3	%		91.3	%		91.4	%		91.4	%		(0.1	%)

(1)See page 48 for our definition of this measure.

(2)In June 2022, 60 Wall Street was taken “out-of-service” for redevelopment.

- 38 -

  SAME STORE LEASED OCCUPANCY

(unaudited)

				As of December 31, 2022						As of December 31, 2021						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	%		99.7	%		99.7	%		98.3	%		98.3	%		1.4	%
1301 Avenue of the Americas		100.0	%		88.1	%		88.1	%		84.3	%		84.3	%		3.8	%
1325 Avenue of the Americas		100.0	%		94.4	%		94.4	%		93.4	%		93.4	%		1.0	%
31 West 52nd Street		100.0	%		93.0	%		93.0	%		92.3	%		92.3	%		0.7	%
900 Third Avenue		100.0	%		79.3	%		79.3	%		79.2	%		79.2	%		0.1	%
712 Fifth Avenue		50.0	%		73.9	%		73.9	%		71.4	%		71.4	%		2.5	%
1600 Broadway (2)		9.2	%		100.0	%		-	%		-	%		-	%		-	%
60 Wall Street (3)		5.0	%	N/A				-	%		100.0	%		-	%		-	%
Weighted average					91.7	%		91.7	%		91.8	%		89.8	%		1.9	%
PGRE's share					92.1	%		92.1	%		90.4	%		90.3	%		1.8	%
San Francisco:
One Market Plaza		49.0	%		95.8	%		95.8	%		94.7	%		94.7	%		1.1	%
Market Center		67.0	%		79.4	%		79.4	%		84.2	%		84.2	%		(4.8	%)
300 Mission Street		31.1	%		81.4	%		81.4	%		94.7	%		94.7	%		(13.3	%)
One Front Street		100.0	%		97.0	%		97.0	%		97.1	%		97.1	%		(0.1	%)
55 Second Street		44.1	%		86.0	%		86.0	%		96.3	%		96.3	%		(10.3	%)
111 Sutter Street		49.0	%		59.4	%		59.4	%		64.2	%		64.2	%		(4.8	%)
Weighted average					87.8	%		87.8	%		91.4	%		91.4	%		(3.6	%)
PGRE's share					88.9	%		88.9	%		91.6	%		91.6	%		(2.7	%)
Weighted average					90.2	%		90.2	%		91.6	%		90.4	%		(0.2	%)
PGRE's share					91.3	%		91.3	%		90.7	%		90.6	%		0.7	%

(1)See page 48 for our definition of this measure.

(2)Acquired on February 24, 2022.

(3)In June 2022, 60 Wall Street was taken “out-of-service” for redevelopment.

- 39 -

  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
Top 10 Tenants:				Lease	Square Feet			Square Feet					Per Square		Annualized
As of December 31, 2022			Property	Expiration	Occupied (2)			Occupied (2)			Amount		Foot (2)		Rent
	First Republic Bank		One Front Street	Jun-2025		249,615			249,615		$	21,140	$	84.39		3.1	%
				Dec-2029		76,999			76,999			7,595		98.64		1.1	%
				Dec-2030		25,157			25,157			2,260		89.36		0.3	%
				Dec-2032		108,111			108,111			11,223		103.81		1.7	%
						459,882			459,882			42,218		91.61		6.2	%
	Credit Agricole Corporate &		1301 Avenue of the Americas	Feb-2023		305,132	(3)		305,132	(3)		28,073		91.46		4.1	%
		Investment Bank		Apr-2035		159,308			159,308			11,690		72.00		1.7	%
						464,440			464,440			39,763		84.79		5.8	%
	Clifford Chance LLP		31 West 52nd Street	Jun-2024		328,543			328,543			29,282		89.11		4.3	%
	Allianz Global Investors, LP		1633 Broadway	Jan-2031		320,911			288,823			28,148		97.46		4.1	%
	Norton Rose Fulbright		1301 Avenue of the Americas	Mar-2032		111,589			111,589			10,164		91.08		1.5	%
				Sep-2034		179,286			179,286			17,602		94.37		2.6	%
						290,875			290,875			27,766		93.11		4.1	%
	Morgan Stanley & Company		1633 Broadway	Mar-2032		260,829			234,749			19,586		83.43		2.9	%
	WMG Acquisition Corp.		1633 Broadway	Jul-2029		288,250			259,428			17,678		67.51		2.6	%
		(Warner Music Group)
	Showtime Networks, Inc.		1633 Broadway	Jan-2026		253,196			227,879			16,867		72.51		2.5	%
	Google, Inc.		One Market Plaza	Apr-2025		339,833			166,518			15,509		92.72		2.3	%
	Uber Technologies, Inc.		Market Center	Jul-2023		234,783			157,305			14,703		93.47		2.2	%

		PGRE's Share of
Industry Diversification:		Square Feet		% of Occupied			Annualized		% of
As of December 31, 2022		Occupied		Square Feet			Rent (1)		Annualized Rent
	Legal Services		1,715,627		21.2	%	$	150,069		22.0	%
	Financial Services - Commercial and Investment Banking		1,716,428		21.3	%		147,182		21.6	%
	Technology and Media		1,681,331		20.8	%		136,826		20.1	%
	Financial Services, all others		1,113,494		13.8	%		103,742		15.2	%
	Insurance		437,152		5.4	%		41,179		6.0	%
	Retail		144,305		1.8	%		16,643		2.4	%
	Travel and Leisure		206,198		2.6	%		13,849		2.0	%
	Consumer Products		121,732		1.5	%		10,225		1.5	%
	Other Professional Services		113,261		1.4	%		9,702		1.4	%
	Other		819,662		10.2	%		53,498		7.8	%

(1)See page 48 for our definition of this measure.

(2)Represents office and retail space only.

(3)Includes 160,708 square feet that has been pre-leased to O'Melveny & Myers LLP through February 2040.

- 40 -

  LEASING ACTIVITY (1)

(unaudited)

	Total			New York			San Francisco
Three Months Ended December 31, 2022
Total square feet leased		205,530			151,700			53,830
PGRE's share of total square feet leased:		131,742			99,740			32,002
Initial rent (2)	$	77.66		$	71.89		$	95.64
Weighted average lease term (in years)		3.8			4.4			1.7
Tenant improvements and leasing commissions:
Per square foot	$	40.84		$	49.94		$	12.46
Per square foot per annum	$	10.81		$	11.26		$	7.24
Percentage of initial rent		13.9	%		15.7	%		7.6	%
Rent concessions:
Average free rent period (in months)		3.8			4.4			1.7
Average free rent period per annum (in months)		1.0			1.0			1.0
Second generation space: (2)
Square feet		116,142			84,140			32,002
Cash basis:
Initial rent (2)	$	78.60		$	72.11		$	95.64
Prior escalated rent (2)	$	79.12		$	74.60		$	91.01
Percentage (decrease) increase		(0.7	%)		(3.3	%)		5.1	%
GAAP basis:
Straight-line rent (2)	$	76.29		$	71.75		$	88.24
Prior straight-line rent (2)	$	74.59		$	69.13		$	88.92
Percentage increase (decrease)		2.3	%		3.8	%		(0.8	%)

(1)The leasing statistics, except for square feet leased, represent office space only.

(2)See page 48 for our definition of this measure.

- 41 -

  LEASING ACTIVITY (1)

(unaudited)

	Total			New York			San Francisco
Year Ended December 31, 2022
Total square feet leased		947,135			733,968			213,167
PGRE's share of total square feet leased:		688,041			573,247			114,794
Initial rent (2)	$	77.22		$	72.08		$	102.90
Weighted average lease term (in years)		8.8			9.5			5.6
Tenant improvements and leasing commissions:
Per square foot	$	94.61		$	103.03		$	52.58
Per square foot per annum	$	10.72		$	10.88		$	9.40
Percentage of initial rent		13.9	%		15.1	%		9.1	%
Rent concessions:
Average free rent period (in months)		9.7			10.8			4.1
Average free rent period per annum (in months)		1.1			1.1			0.7
Second generation space: (2)
Square feet		557,641			464,373			93,268
Cash basis:
Initial rent (2)	$	76.77		$	71.14		$	104.83
Prior escalated rent (2)	$	81.14		$	76.97		$	101.90
Percentage (decrease) increase		(5.4	%)		(7.6	%)		2.9	%
GAAP basis:
Straight-line rent (2)	$	75.27		$	69.36		$	104.67
Prior straight-line rent (2)	$	74.16		$	70.04		$	94.69
Percentage increase (decrease)		1.5	%		(1.0	%)		10.5	%

(1)The leasing statistics, except for square feet leased, represent office space only.

(2)See page 48 for our definition of this measure.

- 42 -

  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			12,103		8,295	$	807	$	-		0.1	%
	1Q 2023			167,923		160,702		14,407		90.85		2.1	%
	2Q 2023			25,976		14,650		1,096		74.27		0.2	%
	3Q 2023			268,874		180,470		16,777		92.89		2.4	%
	4Q 2023			48,815		33,020		3,275		98.58		0.5	%
	Total 2023			511,588		388,842		35,555		91.84		5.2	%
		2024		920,930		802,595		68,217		85.11		9.9	%
		2025		1,461,334		934,675		81,663		87.30		11.8	%
		2026		1,449,107		1,014,226		89,381		85.94		13.0	%
		2027		295,868		219,152		19,527		88.97		2.8	%
		2028		326,729		266,438		20,291		76.54		2.9	%
		2029		573,478		494,143		40,056		81.53		5.8	%
		2030		611,972		515,491		45,745		88.78		6.6	%
		2031		597,334		529,940		50,917		92.70		7.4	%
		2032		914,704		640,706		59,119		92.27		8.6	%
	Thereafter			2,557,621		2,327,512		178,334		83.30		25.9	%

(1)See page 48 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 in the following quarter.

(3)Represents office and retail space only.

- 43 -

  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			2,596		2,421	$	455	$	-		0.1	%
	1Q 2023			158,468		156,046		13,971		90.89		2.8	%
	2Q 2023			17,066		10,719		779		72.70		0.2	%
	3Q 2023			21,779		14,865		1,266		84.25		0.3	%
	4Q 2023			6,751		5,054		403		75.32		0.1	%
	Total 2023			204,064		186,684		16,419		88.85		3.4	%
		2024		676,256		652,908		54,051		82.88		11.2	%
		2025		344,891		284,746		25,320		88.79		5.2	%
		2026		737,418		674,101		55,458		78.90		11.5	%
		2027		168,077		152,924		12,929		84.41		2.7	%
		2028		195,595		170,984		11,750		69.08		2.4	%
		2029		496,253		453,509		36,436		80.84		7.5	%
		2030		407,764		397,048		33,993		85.66		7.0	%
		2031		496,270		452,783		43,898		92.96		9.1	%
		2032		492,354		455,927		38,344		84.10		7.9	%
	Thereafter			2,227,113		2,088,653		154,442		81.12		32.0	%

(1)See page 48 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 in the following quarter.

(3)Represents office and retail space only.

- 44 -

  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			9,507		5,874	$	352	$	-		0.2	%
	1Q 2023			9,455		4,656		436		89.53		0.2	%
	2Q 2023			8,910		3,931		317		78.56		0.2	%
	3Q 2023			247,095		165,605		15,511		93.67		7.5	%
	4Q 2023			42,064		27,966		2,872		102.80		1.4	%
	Total 2023			307,524		202,158		19,136		94.54		9.3	%
		2024		244,674		149,687		14,166		94.91		6.9	%
		2025		1,116,443		649,929		56,343		86.65		27.2	%
		2026		711,689		340,125		33,923		99.76		16.5	%
		2027		127,791		66,228		6,598		99.50		3.2	%
		2028		131,134		95,454		8,541		89.90		4.1	%
		2029		77,225		40,634		3,620		89.09		1.8	%
		2030		204,208		118,443		11,752		99.22		5.7	%
		2031		101,064		77,157		7,019		91.22		3.4	%
		2032		422,350		184,779		20,775		112.43		10.1	%
	Thereafter			330,508		238,859		23,892		100.07		11.6	%

(1)See page 48 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.

- 45 -

  CASH BASIS CAPITAL EXPENDITURES

(unaudited and in thousands)

	Three Months Ended December 31, 2022
	Total		New York		San Francisco		Other
Capital Expenditures: (1)
Expenditures to maintain assets	$	16,377	$	13,523	$	1,949	$	905
Second generation tenant improvements		36,249		22,296		13,953		-
Second generation leasing commissions		2,790		1,884		906		-
First generation leasing costs and capital expenditures		-		-		-		-
Total Capital Expenditures	$	55,416	$	37,703	$	16,808	$	905
Redevelopment Expenditures: (1)
Lobby renovations and other	$	1,367	$	-	$	-	$	1,367
Total Redevelopment Expenditures	$	1,367	$	-	$	-	$	1,367
	Three Months Ended December 31, 2021
	Total		New York		San Francisco		Other
Capital Expenditures: (1)
Expenditures to maintain assets	$	16,379	$	13,856	$	2,464	$	59
Second generation tenant improvements		12,565		5,556		7,009		-
Second generation leasing commissions		5,564		1,360		4,204		-
First generation leasing costs and capital expenditures		-		-		-		-
Total Capital Expenditures	$	34,508	$	20,772	$	13,677	$	59
Redevelopment Expenditures: (1)
Gershwin facade replacement	$	2,026	$	2,026	$	-	$	-
Elevator modernizations		1,963		1,945		18		-
Lobby renovations		489		486		3		-
Other		3,099		2,571		6		522
Total Redevelopment Expenditures	$	7,577	$	7,028	$	27	$	522

(1)See page 48 for our definition of this measure.

- 46 -

  CASH BASIS CAPITAL EXPENDITURES

(unaudited and in thousands)

	Year Ended December 31, 2022
	Total		New York		San Francisco		Other
Capital Expenditures: (1)
Expenditures to maintain assets	$	47,225	$	37,523	$	8,677	$	1,025
Second generation tenant improvements		66,003		38,953		27,050		-
Second generation leasing commissions		15,136		12,167		2,969		-
First generation leasing costs and capital expenditures		-		-		-		-
Total Capital Expenditures	$	128,364	$	88,643	$	38,696	$	1,025
Redevelopment Expenditures: (1)
Lobby renovations	$	5,443	$	1,754	$	46	$	3,643
Elevator modernizations		1,964		1,928		36		-
Other		1,807		1,719		88		-
Total Redevelopment Expenditures	$	9,214	$	5,401	$	170	$	3,643
	Year Ended December 31, 2021
	Total		New York		San Francisco		Other
Capital Expenditures: (1)
Expenditures to maintain assets	$	31,959	$	23,873	$	7,975	$	111
Second generation tenant improvements		42,811		8,912		33,899		-
Second generation leasing commissions		19,138		12,589		6,549		-
First generation leasing costs and capital expenditures		-		-		-		-
Total Capital Expenditures	$	93,908	$	45,374	$	48,423	$	111
Redevelopment Expenditures: (1)
Elevator modernizations	$	12,892	$	9,768	$	3,124	$	-
Gershwin facade replacement		11,944		11,944		-		-
Lobby renovations		5,973		4,131		1,842		-
Other		3,628		2,977		129		522
Total Redevelopment Expenditures	$	34,437	$	28,820	$	5,095	$	522

(1)See page 48 for our definition of this measure.

- 47 -

  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 related 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 and adjustments, realized and unrealized gains or losses on real estate related 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 related 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 related 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.

- 48 -

  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 related 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 (i) has been vacant for less than twelve months or (ii) has been pre-leased prior to expiration.

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. Redevelopment Expenditures consist of hard and soft costs related to the development of a property in getting it ready for its intended use.

- 49 -

XML

Document and Entity Information	Feb. 15, 2023
Cover [Abstract]
Entity Address, State or Province	NY
Amendment Flag	false
Entity Central Index Key	0001605607
Document Type	8-K
Document Period End Date	Feb. 15, 2023
Entity Registrant Name	Paramount Group, Inc.
Entity Incorporation State Country Code	MD
Entity File Number	001-36746
Entity Tax Identification Number	32-0439307
Entity Address, Address Line One	1633 Broadway
Entity Address, Address Line Two	Suite 1801
Entity Address, City or Town	New York
Entity Address, Postal Zip Code	10019
City Area Code	(212)
Local Phone Number	237-3100
Written Communications	false
Soliciting Material	false
Pre Commencement Tender Offer	false
Pre Commencement Issuer Tender Offer	false
Security 12b Title	Common stock of Paramount Group, Inc., $0.01 par value per share
Trading Symbol	PGRE
Security Exchange Name	NYSE
Entity Emerging Growth Company	false