EX-99.2 3 pgre-ex99_2.htm EX-99.2 EX-99.2

 

Exhibit 99.2

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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 ability to enter into new leases or renew leases on favorable terms; dependence on tenants’ financial condition; the risk we may lose a major tenant or that a major tenant may be adversely impacted by market and economic conditions, including elevated inflation and interest rates; 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 elevated inflation and interest rates on such market conditions; the effects of acquisitions, dispositions and possible impairment charges on our operating results; the negative impact of 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; regulatory changes, including changes to tax laws and regulations; and other risks and uncertainties detailed from time to time in our filings with the U.S. Securities and Exchange Commission. We do not undertake a duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

 

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TABLE OF CONTENTS

 

 

 

 

Page

 

Company Profile

4

 

 

 

 

 

Research Coverage

5

 

 

 

 

 

Selected Financial Information

 

 

 

Guidance

6 - 7

 

 

Financial Highlights

8

 

 

Consolidated Balance Sheets

9

 

 

Consolidated Statements of Income

10

 

 

Select Income Statement Data

11 - 12

 

 

Funds From Operations ("FFO")

13

 

 

Funds Available for Distribution ("FAD")

14

 

 

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

15

 

 

Net Operating Income ("NOI")

16 - 18

 

 

Same Store Results – Cash NOI

19 - 20

 

 

Same Store Results – NOI

21 - 22

 

 

Consolidated Joint Ventures

23 - 28

 

 

Unconsolidated Joint Ventures

29 - 34

 

 

Real Estate Related Funds

35 - 40

 

 

Capital Structure

41

 

 

Debt Analysis

42

 

 

Debt Maturities

43

 

 

 

 

 

Selected Property Data

 

 

 

Portfolio Summary

44 - 45

 

 

Same Store Leased Occupancy

46 - 47

 

 

Top Tenants and Industry Diversification

48

 

 

Leasing Activity

49 - 50

 

 

Lease Expirations

51 - 53

 

 

Cash Basis Capital Expenditures

54 - 55

 

 

 

 

 

 

 

 

 

Definitions

56 - 57

 

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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

 

 

 

 

 

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RESEARCH COVERAGE (1)

 

 

Camille Bonnel

 

Thomas Catherwood

Steve Sakwa

Bank of America Merrill Lynch

BTIG

Evercore ISI

(416) 369-2140

(212) 738-6140

(212) 446-9462

camille.bonnel@bofa.com

tcatherwood@btig.com

steve.sakwa@evercoreisi.com

 

 

 

Dylan Burzinski

 

Vikram Malhotra

Ronald Kamdem

Green Street Advisors

Mizuho Securities USA Inc.

Morgan Stanley

(949) 640-8780

(212) 282-3827

(212) 296-8319

dburzinski@greenstreet.com

vikram.malhotra@mizuhogroup.com

ronald.kamdem@morganstanley.com

 

 

 

Blaine Heck

 

Andrew Rosivach

 

 

Wells Fargo

Wolfe Research

 

 

(443) 263-6529

(646) 582-9250

 

 

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.

 

 

 

 

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GUIDANCE

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Full Year 2024

 

(Amounts per diluted share)

 

Low

 

 

High

 

 

 

 

 

Estimated net loss attributable to common stockholders

 

$

(0.18

)

 

$

(0.12

)

 

 

 

 

Our share of real estate depreciation and amortization

 

 

0.91

 

 

 

0.91

 

 

 

 

 

Estimated Core FFO (1)(2)

 

$

0.73

 

 

$

0.79

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Assumptions:

 

 

 

 

 

 

 

 

 

Leasing Activity (square feet)

 

 

650,000

 

 

 

900,000

 

 

 

 

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

 

 

86.1

%

 

 

88.1

%

 

 

 

Decrease in PGRE's share of Same Store Cash NOI (2)

 

 

(6.0

%)

 

 

(4.0

%)

 

 

 

Decrease in PGRE's share of Same Store NOI (2)

 

 

(4.5

%)

 

 

(2.5

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Assumptions (at share):

 

 

 

 

 

 

 

 

 

Estimated net loss

 

$

(42,000

)

 

$

(28,000

)

 

 

 

 

Depreciation and amortization

 

213,000

 

 

 

213,000

 

 

 

 

 

General and administrative expenses

 

64,500

 

 

 

62,500

 

 

 

 

 

Interest and debt expense, including amortization of deferred financing costs

 

142,500

 

 

 

139,500

 

 

 

 

 

Fee and other income, net of income taxes

 

(31,000

)

 

 

(32,000

)

 

 

 

NOI (2)

 

 

347,000

 

 

 

355,000

 

 

 

 

 

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

 

(20,500

)

 

 

(22,500

)

 

 

 

Cash NOI (2)

 

$

326,500

 

 

$

332,500

 

 

(1)
We are providing our Estimated Core FFO Guidance for the full year of 2024, 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 14, 2024 and otherwise to be referenced during our conference call scheduled for February 15, 2024. 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. There can be no assurance that our actual results will not differ materially from the estimates set forth above.
(2)
See page 56 for our definition of this measure.

 

 

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GUIDANCE

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

 

Non-core

 

 

2023

 

 

2024

 

 

Change from

 

 

 

 

 

 

 

 

 

As Reported

 

 

Assets (1)

 

 

As Adjusted

 

 

Assumptions (2)

 

 

Prior Year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial and Operating Results/Assumptions (at share):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash NOI (3)

 

$

369,500

 

 

$

14,700

 

 

$

354,800

 

 

$

329,500

 

 

$

(25,300

)

 

 

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

 

 

5,100

 

 

 

2,000

 

 

 

3,100

 

 

 

21,500

 

 

 

18,400

 

 

 

NOI (3)

 

 

374,600

 

 

 

16,700

 

 

 

357,900

 

 

 

351,000

 

 

 

(6,900

)

 

 

Interest and debt expense

 

 

(145,600

)

 

 

(15,300

)

 

 

(130,300

)

 

 

(141,000

)

 

 

(10,700

)

 

 

General and administrative expenses

 

 

(62,000

)

 

 

-

 

 

 

(62,000

)

 

 

(63,500

)

 

 

(1,500

)

 

 

Interest, fee and other income, net of income taxes

 

 

36,100

 

 

 

800

 

 

 

35,300

 

 

 

31,500

 

 

 

(3,800

)

 

 

Core FFO (3) (OP basis)

 

$

203,100

 

 

$

2,200

 

 

$

200,900

 

 

$

178,000

 

 

$

(22,900

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Diluted Share

 

 

 

 

$

0.87

 

 

$

0.01

 

 

$

0.86

 

 

$

0.76

 

 

$

(0.10

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

87.7

%

 

 

55.4

%

 

 

90.1

%

 

 

87.1

%

 

 

(3.0

%)

 

(1)
Represents Market Center and 111 Sutter Street, which are being treated as non-core/non-same store assets effective January 1, 2024.
(2)
Based on the midpoint of the 2024 financial and operating assumptions utilized in our Estimated Core FFO Guidance that are listed on page 6.
(3)
See page 56 for our definition of this measure.

 

 

 

 

 

 

 

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FINANCIAL HIGHLIGHTS

 

(unaudited and in thousands, except per share amounts)

 

 

 

 

 

 

Three Months Ended

 

 

Year Ended

 

SELECTED FINANCIAL DATA

 

December 31, 2023

 

 

December 31, 2022

 

 

September 30, 2023

 

 

December 31, 2023

 

 

December 31, 2022

 

 

Net loss attributable to common stockholders

$

(205,550

)

 

$

(37,877

)

 

$

(8,385

)

 

$

(259,744

)

 

$

(36,403

)

 

 

Per share - basic and diluted

$

(0.95

)

 

$

(0.17

)

 

$

(0.04

)

 

$

(1.20

)

 

$

(0.16

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core FFO attributable to common stockholders (1)

$

46,140

 

 

$

54,364

 

 

$

47,822

 

 

$

188,802

 

 

$

216,824

 

 

 

Per share - diluted

$

0.21

 

 

$

0.25

 

 

$

0.22

 

 

$

0.87

 

 

$

0.98

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PGRE's share of Cash NOI (1)

$

87,805

 

 

$

95,504

 

 

$

94,195

 

 

$

369,512

 

 

$

383,201

 

 

PGRE's share of NOI (1)

$

92,533

 

 

$

100,134

 

 

$

96,064

 

 

$

374,638

 

 

$

397,088

 

 

 

Same Store Cash NOI (1)

% Change

 

 

Same Store NOI (1)

% Change

 

   Three Months Ended December 31, 2023 vs. December 31, 2022

 

(8.0

%)

 

   Three Months Ended December 31, 2023 vs. December 31, 2022

 

(7.2

%)

   Year Ended December 31, 2023 vs. December 31, 2022

 

(5.0

%)

 

   Year Ended December 31, 2023 vs. December 31, 2022

 

(4.0

%)

 

 

PORTFOLIO STATISTICS (at PGRE's Share)

 

 

 

 

 

As of

 

 

 

 

 

December 31, 2023

 

 

September 30, 2023

 

 

June 30, 2023

 

 

March 31, 2023

 

 

December 31, 2022

 

 

Leased % (1)

 

 

87.7

%

 

 

88.1

%

 

 

89.6

%

 

 

89.8

%

 

 

91.3

%

 

Same Store Leased % (1)

% Change

 

 

Same Store Leased % (1)

% Change

 

   December 31, 2023 vs. September 30, 2023

 

(0.4

%)

 

    December 31, 2023 vs. December 31, 2022

 

(3.6

%)

 

 

COMMON SHARE DATA

 

 

 

 

 

Three Months Ended

 

 

Share Price:

 

December 31, 2023

 

 

September 30, 2023

 

 

June 30, 2023

 

 

March 31, 2023

 

 

December 31, 2022

 

 

High

 

$

5.92

 

 

$

5.43

 

 

$

4.92

 

 

$

6.74

 

 

$

6.86

 

 

 

Low

 

$

4.06

 

 

$

4.20

 

 

$

4.10

 

 

$

3.90

 

 

$

5.48

 

 

 

Closing (end of period)

 

$

5.17

 

 

$

4.62

 

 

$

4.43

 

 

$

4.56

 

 

$

5.94

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends per common share

 

$

0.035

 

 

$

0.035

 

 

$

0.035

 

 

$

0.0775

 

 

$

0.0775

 

 

Annualized dividends per common share

 

$

0.14

 

 

$

0.14

 

 

$

0.14

 

 

$

0.31

 

 

$

0.31

 

 

Dividend yield (on closing share price)

 

 

2.7

%

 

 

3.0

%

 

 

3.2

%

 

 

6.8

%

 

 

5.2

%

 

(1)
See page 56 for our definition of this measure.

- 8 -


 

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CONSOLIDATED BALANCE SHEETS

 

(unaudited and in thousands)

 

 

 

 

 

 

 

 

 

December 31, 2023

 

 

December 31, 2022

 

Assets:

 

 

 

 

 

 

Real estate, at cost:

 

 

 

 

 

 

 

Land

$

1,966,237

 

 

$

1,966,237

 

 

 

Buildings and improvements

 

6,250,379

 

 

 

6,177,540

 

 

 

 

 

 

 

 

 

 

8,216,616

 

 

 

8,143,777

 

 

 

Accumulated depreciation and amortization

 

(1,471,819

)

 

 

(1,297,553

)

 

Real estate, net

 

6,744,797

 

 

 

6,846,224

 

 

Cash and cash equivalents

 

428,208

 

 

 

408,905

 

 

Restricted cash

 

81,391

 

 

 

40,912

 

 

Accounts and other receivables

 

18,053

 

 

 

23,866

 

 

Real estate related fund investments

 

775

 

 

 

105,369

 

 

Investments in unconsolidated real estate related funds

 

4,549

 

 

 

3,411

 

 

Investments in unconsolidated joint ventures

 

132,239

 

 

 

393,503

 

 

Deferred rent receivable

 

351,209

 

 

 

346,338

 

 

Deferred charges, net

 

108,751

 

 

 

120,685

 

 

Intangible assets, net

 

68,005

 

 

 

90,381

 

 

Other assets

 

68,238

 

 

 

73,660

 

Total assets

$

8,006,215

 

 

$

8,453,254

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

Notes and mortgages payable, net

$

3,803,484

 

 

$

3,840,318

 

 

Revolving credit facility

 

-

 

 

 

-

 

 

Accounts payable and accrued expenses

 

114,463

 

 

 

123,176

 

 

Dividends and distributions payable

 

8,360

 

 

 

18,026

 

 

Intangible liabilities, net

 

28,003

 

 

 

36,193

 

 

Other liabilities

 

37,017

 

 

 

24,775

 

Total liabilities

 

3,991,327

 

 

 

4,042,488

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

Paramount Group, Inc. equity

 

3,203,285

 

 

 

3,592,291

 

 

Noncontrolling interests in:

 

 

 

 

 

 

 

Consolidated joint ventures

 

413,925

 

 

 

402,118

 

 

 

Consolidated real estate related funds

 

110,589

 

 

 

173,375

 

 

 

Operating Partnership

 

287,089

 

 

 

242,982

 

Total equity

 

4,014,888

 

 

 

4,410,766

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and equity

$

8,006,215

 

 

$

8,453,254

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- 9 -


 

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CONSOLIDATED STATEMENTS OF INCOME

 

(unaudited and in thousands, except per share amounts)

 

 

 

 

 

 

 

Three Months Ended

 

 

Year Ended

 

 

 

 

 

 

 

December 31, 2023

 

 

December 31, 2022

 

 

September 30, 2023

 

 

December 31, 2023

 

 

December 31, 2022

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental revenue (1)

$

181,736

 

 

$

176,404

 

 

$

182,515

 

 

$

711,470

 

 

$

702,819

 

 

Fee and other income (1)

 

10,735

 

 

 

7,624

 

 

 

6,666

 

 

 

31,318

 

 

 

37,558

 

Total revenues

 

192,471

 

 

 

184,028

 

 

 

189,181

 

 

 

742,788

 

 

 

740,377

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating

 

77,076

 

 

 

70,102

 

 

 

75,502

 

 

 

293,965

 

 

 

277,422

 

 

Depreciation and amortization

 

68,866

 

 

 

61,211

 

 

 

60,263

 

 

 

250,644

 

 

 

232,517

 

 

General and administrative

 

15,679

 

 

 

13,986

 

 

 

15,460

 

 

 

61,986

 

 

 

59,487

 

 

Transaction related costs

 

99

 

 

 

89

 

 

 

132

 

 

 

422

 

 

 

470

 

Total expenses

 

161,720

 

 

 

145,388

 

 

 

151,357

 

 

 

607,017

 

 

 

569,896

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income from real estate related fund investments (1)

 

(59,341

)

 

 

(2,233

)

 

 

2,060

 

 

 

(96,375

)

 

 

(2,233

)

 

Income (loss) from unconsolidated real estate related funds

 

45

 

 

 

(1,864

)

 

 

(721

)

 

 

(822

)

 

 

(1,239

)

 

Loss from unconsolidated joint ventures (2)

 

(207,160

)

 

 

(37,925

)

 

 

(28,974

)

 

 

(270,298

)

 

 

(53,251

)

 

Interest and other income, net

 

4,830

 

 

 

2,567

 

 

 

4,115

 

 

 

14,837

 

 

 

5,174

 

 

Interest and debt expense (2)

 

(40,550

)

 

 

(37,060

)

 

 

(39,102

)

 

 

(152,990

)

 

 

(143,864

)

Loss before income taxes

 

(271,425

)

 

 

(37,875

)

 

 

(24,798

)

 

 

(369,877

)

 

 

(24,932

)

 

Income tax expense

 

(302

)

 

 

(1,706

)

 

 

(263

)

 

 

(1,426

)

 

 

(3,265

)

Net loss

 

(271,727

)

 

 

(39,581

)

 

 

(25,061

)

 

 

(371,303

)

 

 

(28,197

)

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated joint ventures

 

(4,585

)

 

 

(1,598

)

 

 

(4,887

)

 

 

(20,464

)

 

 

(13,981

)

 

Consolidated real estate related funds

 

52,383

 

 

 

665

 

 

 

20,934

 

 

 

109,795

 

 

 

3,342

 

 

Operating Partnership

 

18,379

 

 

 

2,637

 

 

 

629

 

 

 

22,228

 

 

 

2,433

 

Net loss attributable to common stockholders

$

(205,550

)

 

$

(37,877

)

 

$

(8,385

)

 

$

(259,744

)

 

$

(36,403

)

 

Per diluted share

$

(0.95

)

 

$

(0.17

)

 

$

(0.04

)

 

$

(1.20

)

 

$

(0.16

)

 

(1)
See page 11 for details.
(2)
See page 12 for details.

- 10 -


 

img172260412_8.jpg 

SELECT INCOME STATEMENT DATA

 

(unaudited and in thousands)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Year Ended

 

 

Rental Revenue:

December 31, 2023

 

 

December 31, 2022

 

 

September 30, 2023

 

 

December 31, 2023

 

 

December 31, 2022

 

 

 

Property rentals

$

156,246

 

 

$

159,029

 

 

$

158,595

 

 

$

629,319

 

 

$

634,019

 

 

 

Tenant reimbursements

 

19,637

 

 

 

10,422

 

 

 

16,896

 

 

 

64,261

 

 

 

51,394

 

 

 

Straight-line rent adjustments

 

3,569

 

 

 

5,794

 

 

 

1,060

 

 

 

4,874

 

(1)

 

13,602

 

 

 

Amortization of above and below-market leases, net

 

1,447

 

 

 

1,159

 

 

 

1,445

 

 

 

5,376

 

 

 

1,748

 

 

 

Lease termination income

 

837

 

 

 

-

 

 

 

4,519

 

 

 

7,640

 

 

 

2,056

 

 

Total rental revenue

$

181,736

 

 

$

176,404

 

 

$

182,515

 

 

$

711,470

 

 

$

702,819

 

 

 

(1)
Includes non-cash straight-line rent receivable write-offs aggregating $13,906 comprised of (i) a $7,343 write-off related to the surrendered JPMorgan Chase space and (ii) a $6,563 write-off related to the terminated SVB Securities lease.

 

 

 

 

 

 

 

Three Months Ended

 

 

Year Ended

 

 

Fee and Other Income:

December 31, 2023

 

 

December 31, 2022

 

 

September 30, 2023

 

 

December 31, 2023

 

 

December 31, 2022

 

 

 

Asset management

$

4,115

 

 

$

3,132

 

 

$

2,459

 

 

$

11,075

 

 

$

12,270

 

 

 

Property management

 

1,775

 

 

 

1,810

 

 

 

1,810

 

 

 

7,278

 

 

 

7,981

 

 

 

Acquisition, disposition, leasing and other

 

1,601

 

 

 

385

 

 

 

304

 

 

 

3,244

 

 

 

8,170

 

 

 

Total fee income

 

7,491

 

 

 

5,327

 

 

 

4,573

 

 

 

21,597

 

 

 

28,421

 

 

 

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

 

3,244

 

 

 

2,297

 

 

 

2,093

 

 

 

9,721

 

 

 

9,137

 

 

Total fee and other income

$

10,735

 

 

$

7,624

 

 

$

6,666

 

 

$

31,318

 

 

$

37,558

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Year Ended

 

 

(Loss) Income from Real Estate Related Fund Investments

December 31, 2023

 

 

December 31, 2022

 

 

September 30, 2023

 

 

December 31, 2023

 

 

December 31, 2022

 

 

 

Net investment income

$

1,606

 

 

$

394

 

 

$

2,032

 

 

$

11,347

 

 

$

394

 

 

 

Net realized and unrealized (losses) gains (1)

 

(60,947

)

 

 

-

 

 

 

28

 

 

 

(107,722

)

 

 

-

 

 

 

Loss recognized upon consolidation of real estate related
   fund investments that were previously unconsolidated
(2)

 

-

 

 

 

(2,627

)

 

 

-

 

 

 

-

 

 

 

(2,627

)

 

(Loss) income from real estate related fund investments

$

(59,341

)

 

$

(2,233

)

 

$

2,060

 

 

$

(96,375

)

 

$

(2,233

)

 

 

(1)
Represents realized and unrealized losses on real estate mezzanine loan investments made by Fund X, which is consolidated into our financial statements, of which our share, net of amounts attributable to noncontrolling interests, was $7,935 and $14,025 in the three months and year ended December 31, 2023, respectively.
(2)
Prior to December 12, 2022, Fund X was accounted for under the equity method of accounting. Subsequent to December 12, 2022, we increased our ownership in Fund X to 13.0% and began consolidating Fund X into our consolidated financial statements.

 

 

- 11 -


 

img172260412_8.jpg 

SELECT INCOME STATEMENT DATA

 

(unaudited and in thousands)

 

 

 

 

 

 

 

Three Months Ended

 

 

Year Ended

 

 

Loss from Unconsolidated Joint Ventures

December 31, 2023

 

 

December 31, 2022

 

 

September 30, 2023

 

 

December 31, 2023

 

 

December 31, 2022

 

 

 

Equity in earnings

$

(5,664

)

 

$

(6,240

)

 

$

(5,032

)

 

$

(20,126

)

 

$

(21,566

)

 

 

Our share of real estate impairment losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Market Center

 

(148,906

)

 

 

-

 

 

 

-

 

 

 

(148,906

)

 

 

-

 

 

 

   55 Second Street

 

(52,590

)

 

 

-

 

 

 

-

 

 

 

(52,590

)

 

 

-

 

 

 

   60 Wall Street

 

-

 

 

 

-

 

 

 

-

 

 

 

(24,734

)

 

 

-

 

 

 

   111 Sutter Street

 

-

 

 

 

(31,685

)

 

 

-

 

 

 

-

 

 

 

(31,685

)

 

 

RDF's share of impairment losses related to residential
   condominium units at One Steuart Lane
(1)

 

-

 

 

 

-

 

 

 

(23,942

)

 

 

(23,942

)

 

 

-

 

 

Loss from Unconsolidated Joint Ventures

$

(207,160

)

 

$

(37,925

)

 

$

(28,974

)

 

$

(270,298

)

 

$

(53,251

)

 

 

(1)
RDF, our consolidated Residential Development Fund, owns a 35% economic interest in One Steuart Lane, a for-sale residential condominium project. Our economic interest in One Steuart Lane (based on our 7.4% interest in RDF) is 2.6%. The amount above represents RDF's share of impairment loss, of which our share, net of amounts attributable noncontrolling interests, was $1,772.

 

 

 

 

 

 

 

Three Months Ended

 

 

Year Ended

 

 

Interest and Debt Expense:

December 31, 2023

 

 

December 31, 2022

 

 

September 30, 2023

 

 

December 31, 2023

 

 

December 31, 2022

 

 

 

Interest expense

$

38,961

 

 

$

35,518

 

 

$

37,549

 

 

$

146,771

 

 

$

137,708

 

 

 

Amortization of deferred financing costs

 

1,589

 

 

 

1,542

 

 

 

1,553

 

 

 

6,219

 

 

 

6,156

 

 

Total interest and debt expense

$

40,550

 

 

$

37,060

 

 

$

39,102

 

 

$

152,990

 

 

$

143,864

 

 

 

- 12 -


 

img172260412_9.jpg 

FFO

 

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

 

 

 

 

 

 

 

Three Months Ended

 

 

Year Ended

 

 

 

 

 

 

December 31, 2023

 

 

December 31, 2022

 

 

September 30, 2023

 

 

December 31, 2023

 

 

December 31, 2022

 

Reconciliation of net loss to FFO and Core FFO:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(271,727

)

 

$

(39,581

)

 

$

(25,061

)

 

$

(371,303

)

 

$

(28,197

)

 

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

 

 

76,723

 

 

 

70,720

 

 

 

69,160

 

 

 

286,410

 

 

 

271,789

 

 

Our share of non-cash real estate impairment losses related to
    unconsolidated joint ventures

 

 

201,496

 

 

 

31,685

 

 

 

-

 

 

 

226,230

 

 

 

31,685

 

 

FFO (1)

 

 

6,492

 

 

 

62,824

 

 

 

44,099

 

 

 

141,337

 

 

 

275,277

 

 

Less FFO attributable to noncontrolling interests in:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated joint ventures

 

 

(14,774

)

 

 

(11,565

)

 

 

(14,801

)

 

 

(59,639

)

 

 

(51,433

)

 

 

Consolidated real estate related funds

 

 

52,383

 

 

 

659

 

 

 

20,933

 

 

 

109,781

 

 

 

3,318

 

 

FFO attributable to Paramount Group Operating Partnership

 

 

44,101

 

 

 

51,918

 

 

 

50,231

 

 

 

191,479

 

 

 

227,162

 

 

Less FFO attributable to noncontrolling interests in Operating Partnership

 

 

(3,620

)

 

 

(3,380

)

 

 

(3,510

)

 

 

(13,481

)

 

 

(17,063

)

 

FFO attributable to common stockholders (1)

 

$

40,481

 

 

$

48,538

 

 

$

46,721

 

 

$

177,998

 

 

$

210,099

 

 

Per diluted share

 

$

0.19

 

 

$

0.22

 

 

$

0.21

 

 

$

0.82

 

 

$

0.95

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO

 

$

6,492

 

 

$

62,824

 

 

$

44,099

 

 

$

141,337

 

 

$

275,277

 

 

Non-core items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments for realized and unrealized gains and losses on consolidated
    and unconsolidated real estate related fund investments, including
    residential condominium units at One Steuart Lane

 

61,859

 

 

 

4,238

 

 

 

25,746

 

 

 

137,387

 

 

 

7,560

 

 

 

Adjustments to equity in earnings of unconsolidated joint ventures

 

(2,326

)

 

 

561

 

 

 

(1,917

)

 

 

(6,866

)

 

 

855

 

 

 

Other, net

 

 

492

 

 

 

2,716

 

 

 

513

 

 

 

1,440

 

 

 

3,097

 

 

Core FFO (1)

 

 

66,517

 

 

 

70,339

 

 

 

68,441

 

 

 

273,298

 

 

 

286,789

 

 

Less Core FFO attributable to noncontrolling interests in:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated joint ventures

 

 

(14,774

)

 

 

(11,565

)

 

 

(14,801

)

 

 

(59,639

)

 

 

(51,433

)

 

 

Consolidated real estate related funds

 

 

(1,477

)

 

 

(625

)

 

 

(2,226

)

 

 

(10,503

)

 

 

(1,006

)

 

Core FFO attributable to Paramount Group Operating Partnership

 

50,266

 

 

 

58,149

 

 

 

51,414

 

 

 

203,156

 

 

 

234,350

 

 

Less Core FFO attributable to noncontrolling interests in Operating
    Partnership

 

(4,126

)

 

 

(3,785

)

 

 

(3,592

)

 

 

(14,354

)

 

 

(17,526

)

 

Core FFO attributable to common stockholders (1)

 

$

46,140

 

 

$

54,364

 

 

$

47,822

 

 

$

188,802

 

 

$

216,824

 

 

Per diluted share

 

$

0.21

 

 

$

0.25

 

 

$

0.22

 

 

$

0.87

 

 

$

0.98

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

 

217,071,959

 

 

 

218,583,895

 

 

 

217,043,022

 

 

 

216,922,235

 

 

 

221,309,938

 

 

Effect of dilutive securities

 

 

77,069

 

 

 

59,378

 

 

 

32,676

 

 

 

20,527

 

 

 

31,487

 

 

Denominator for FFO and Core FFO per diluted share

 

 

217,149,028

 

 

 

218,643,273

 

 

 

217,075,698

 

 

 

216,942,762

 

 

 

221,341,425

 

 

(1)
See page 56 for our definition of this measure.

- 13 -


 

img172260412_10.jpg 

FAD

 

(unaudited and in thousands)

 

 

 

 

 

 

 

Three Months Ended

 

 

Year Ended

 

 

 

 

 

 

 

December 31, 2023

 

 

December 31, 2022

 

 

September 30, 2023

 

 

December 31, 2023

 

 

December 31, 2022

 

Reconciliation of Core FFO to FAD:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core FFO

$

66,517

 

 

$

70,339

 

 

$

68,441

 

 

$

273,298

 

 

$

286,789

 

 

Add (subtract) adjustments (including our share of
   unconsolidated joint ventures) to arrive at FAD:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Straight-line rent adjustments

 

(4,476

)

 

 

(5,746

)

 

 

(1,514

)

 

 

(6,166

)

 

 

(14,034

)

 

 

Amortization of above and below-market leases, net

 

(1,912

)

 

 

(1,984

)

 

 

(2,110

)

 

 

(8,099

)

 

 

(5,099

)

 

 

Amortization of deferred financing costs

 

1,825

 

 

 

1,919

 

 

 

1,787

 

 

 

7,284

 

 

 

7,712

 

 

 

Amortization of stock-based compensation expense

 

6,310

 

 

 

4,150

 

 

 

4,680

 

 

 

20,321

 

 

 

19,003

 

 

 

Expenditures to maintain assets

 

(15,347

)

 

 

(18,835

)

 

 

(7,934

)

 

 

(49,060

)

 

 

(54,962

)

 

 

Second generation tenant improvements
   and leasing commissions

 

(13,788

)

 

 

(40,213

)

 

 

(13,451

)

 

 

(46,325

)

 

 

(83,406

)

 

FAD (1)

 

39,129

 

 

 

9,630

 

 

 

49,899

 

 

 

191,253

 

 

 

156,003

 

 

Less FAD attributable to noncontrolling interests in:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated joint ventures

 

(10,966

)

 

 

81

 

 

 

(9,679

)

 

 

(38,029

)

 

 

(27,412

)

 

 

Consolidated real estate related funds

 

(1,477

)

 

 

(683

)

 

 

(2,226

)

 

 

(10,560

)

 

 

(1,283

)

 

FAD attributable to Paramount Group Operating Partnership

 

26,686

 

 

 

9,028

 

 

 

37,994

 

 

 

142,664

 

 

 

127,308

 

 

Less FAD attributable to noncontrolling interests in
   Operating Partnership

 

(2,190

)

 

 

(588

)

 

 

(2,655

)

 

 

(9,944

)

 

 

(9,874

)

 

FAD attributable to common stockholders (1) (2)

$

24,496

 

 

$

8,440

 

 

$

35,339

 

 

$

132,720

 

 

$

117,434

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Dividends declared on common stock

$

7,608

 

 

$

16,827

 

 

$

7,607

 

 

$

39,655

 

 

$

68,561

 

 

(1)
See page 56 for our definition of this measure.
(2)
FAD attributable to common stockholders is not necessarily indicative of future FAD amounts due to fluctuations in the timing of payments for tenant improvements and leasing commissions versus rents received from leases for which such costs are incurred.

- 14 -


 

img172260412_11.jpg 

EBITDAre

 

 

(unaudited and in thousands)

 

 

 

 

 

 

 

Three Months Ended

 

 

Year Ended

 

 

 

 

 

 

 

December 31, 2023

 

 

December 31, 2022

 

 

September 30, 2023

 

 

December 31, 2023

 

 

December 31, 2022

 

Reconciliation of net loss to EBITDAre and
   Adjusted EBITDAre:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

$

(271,727

)

 

$

(39,581

)

 

$

(25,061

)

 

$

(371,303

)

 

$

(28,197

)

 

Add (subtract) adjustments (including our share of
   unconsolidated joint ventures) to arrive at EBITDAre
   and Adjusted EBITDAre:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

76,723

 

 

 

70,720

 

 

 

69,160

 

 

 

286,410

 

 

 

271,789

 

 

 

Interest and debt expense

 

47,178

 

 

 

43,831

 

 

 

45,666

 

 

 

179,263

 

 

 

170,141

 

 

 

Our share of non-cash real estate impairment losses
    related to unconsolidated joint ventures

 

201,496

 

 

 

31,685

 

 

 

-

 

 

 

226,230

 

 

 

31,685

 

 

 

Income tax expense

 

302

 

 

 

1,707

 

 

 

264

 

 

 

1,439

 

 

 

3,287

 

 

EBITDAre (1)

 

53,972

 

 

 

108,362

 

 

 

90,029

 

 

 

322,039

 

 

 

448,705

 

 

Less EBITDAre attributable to noncontrolling interests in:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated joint ventures

 

(22,844

)

 

 

(19,520

)

 

 

(22,766

)

 

 

(91,352

)

 

 

(83,049

)

 

 

Consolidated real estate related funds

 

52,384

 

 

 

(185

)

 

 

20,929

 

 

 

108,942

 

 

 

(352

)

 

PGRE's share of EBITDAre (1)

$

83,512

 

 

$

88,657

 

 

$

88,192

 

 

$

339,629

 

 

$

365,304

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDAre

$

53,972

 

 

$

108,362

 

 

$

90,029

 

 

$

322,039

 

 

$

448,705

 

 

Add (subtract) adjustments to arrive at Adjusted EBITDAre:

 

 

 

EBITDAre from consolidated and unconsolidated
   real estate related fund investments, including
   residential condominium units at One Steuart Lane

 

60,136

 

 

 

1,772

 

 

 

23,808

 

 

 

125,085

 

 

 

1,055

 

 

 

Adjustments to equity in earnings of unconsolidated
   joint ventures

 

(2,326

)

 

 

561

 

 

 

(1,917

)

 

 

(6,866

)

 

 

855

 

 

 

Other, net

 

99

 

 

 

2,716

 

 

 

132

 

 

 

422

 

 

 

3,097

 

 

Adjusted EBITDAre (1)

 

111,881

 

 

 

113,411

 

 

 

112,052

 

 

 

440,680

 

 

 

453,712

 

 

 

Less Adjusted EBITDAre attributable to noncontrolling
   interests in:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated joint ventures

 

(22,844

)

 

 

(19,520

)

 

 

(22,766

)

 

 

(91,352

)

 

 

(83,049

)

 

PGRE's share of Adjusted EBITDAre (1)

$

89,037

 

 

$

93,891

 

 

$

89,286

 

 

$

349,328

 

 

$

370,663

 

 

(1)
See page 56 for our definition of this measure.

- 15 -


 

img172260412_12.jpg 

NOI

 

(unaudited and in thousands)

 

 

 

 

 

 

 

Three Months Ended

 

 

Year Ended

 

 

 

 

 

 

 

December 31, 2023

 

 

December 31, 2022

 

 

September 30, 2023

 

 

December 31, 2023

 

 

December 31, 2022

 

Reconciliation of net loss to NOI and Cash NOI:

 

 

Net loss

$

(271,727

)

 

$

(39,581

)

 

$

(25,061

)

 

$

(371,303

)

 

$

(28,197

)

 

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

 

 

 

Depreciation and amortization

 

68,866

 

 

 

61,211

 

 

 

60,263

 

 

 

250,644

 

 

 

232,517

 

 

 

General and administrative

 

15,679

 

 

 

13,986

 

 

 

15,460

 

 

 

61,986

 

 

 

59,487

 

 

 

Interest and debt expense

 

40,550

 

 

 

37,060

 

 

 

39,102

 

 

 

152,990

 

 

 

143,864

 

 

 

Income tax expense

 

302

 

 

 

1,706

 

 

 

263

 

 

 

1,426

 

 

 

3,265

 

 

 

Loss (income) from real estate related fund investments

 

59,341

 

 

 

2,233

 

 

 

(2,060

)

 

 

96,375

 

 

 

2,233

 

 

 

NOI from unconsolidated joint ventures (excluding
    One Steuart Lane)

 

7,026

 

 

 

10,782

 

 

 

9,233

 

 

 

37,360

 

 

 

45,141

 

 

 

Loss from unconsolidated joint ventures

 

207,160

 

 

 

37,925

 

 

 

28,974

 

 

 

270,298

 

 

 

53,251

 

 

 

Fee income

 

(7,491

)

 

 

(5,327

)

 

 

(4,573

)

 

 

(21,597

)

 

 

(28,421

)

 

 

Interest and other income, net

 

(4,830

)

 

 

(2,567

)

 

 

(4,115

)

 

 

(14,837

)

 

 

(5,174

)

 

 

Other, net

 

54

 

 

 

1,953

 

 

 

853

 

 

 

1,244

 

 

 

1,709

 

 

NOI (1)

 

114,930

 

 

 

119,381

 

 

 

118,339

 

 

 

464,586

 

 

 

479,675

 

 

Less NOI attributable to noncontrolling interests in:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated joint ventures

 

(22,397

)

 

 

(19,247

)

 

 

(22,275

)

 

 

(89,948

)

 

 

(82,587

)

 

PGRE's share of NOI (1)

$

92,533

 

 

$

100,134

 

 

$

96,064

 

 

$

374,638

 

 

$

397,088

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOI

$

114,930

 

 

$

119,381

 

 

$

118,339

 

 

$

464,586

 

 

$

479,675

 

 

Add (subtract) adjustments to arrive at Cash NOI:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

(4,476

)

 

 

(5,746

)

 

 

(1,514

)

 

 

(6,166

)

 

 

(14,034

)

 

 

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

 

(1,912

)

 

 

(1,984

)

 

 

(2,110

)

 

 

(8,099

)

 

 

(5,099

)

 

Cash NOI (1)

 

108,542

 

 

 

111,651

 

 

 

114,715

 

 

 

450,321

 

 

 

460,542

 

 

Less Cash NOI attributable to noncontrolling interests in:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated joint ventures

 

(20,737

)

 

 

(16,147

)

 

 

(20,520

)

 

 

(80,809

)

 

 

(77,341

)

 

PGRE's share of Cash NOI (1)

$

87,805

 

 

$

95,504

 

 

$

94,195

 

 

$

369,512

 

 

$

383,201

 

 

(1)
See page 56 for our definition of this measure.

 

- 16 -


 

img172260412_12.jpg 

NOI

 

(unaudited and in thousands)

 

 

 

 

 

 

 

Three Months Ended December 31, 2023

 

 

 

 

 

 

 

Total

 

 

New York

 

 

San Francisco

 

 

Other

 

Reconciliation of net loss to NOI and Cash NOI:

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

$

(271,727

)

 

$

(10,708

)

 

$

(192,675

)

 

$

(68,344

)

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

68,866

 

 

 

48,989

 

 

 

18,606

 

 

 

1,271

 

 

 

General and administrative

 

15,679

 

 

 

-

 

 

 

-

 

 

 

15,679

 

 

 

Interest and debt expense

 

40,550

 

 

 

26,825

 

 

 

12,961

 

 

 

764

 

 

 

Income tax expense

 

302

 

 

 

-

 

 

 

3

 

 

 

299

 

 

 

Loss from real estate related fund investments

 

59,341

 

 

 

-

 

 

 

-

 

 

 

59,341

 

 

 

NOI from unconsolidated joint ventures (excluding One Steuart Lane)

 

7,026

 

 

 

2,737

 

 

 

4,214

 

 

 

75

 

 

 

Loss from unconsolidated joint ventures

 

207,160

 

 

 

1

 

 

 

206,270

 

 

 

889

 

 

 

Fee income

 

(7,491

)

 

 

-

 

 

 

-

 

 

 

(7,491

)

 

 

Interest and other income, net

 

(4,830

)

 

 

(829

)

 

 

(724

)

 

 

(3,277

)

 

 

Other, net

 

54

 

 

 

-

 

 

 

-

 

 

 

54

 

 

NOI (1)

 

114,930

 

 

 

67,015

 

 

 

48,655

 

 

 

(740

)

 

Less NOI attributable to noncontrolling interests in:

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated joint ventures

 

(22,397

)

 

 

(2,592

)

 

 

(19,805

)

 

 

-

 

 

PGRE's share of NOI for the three months ended December 31, 2023

$

92,533

 

 

$

64,423

 

 

$

28,850

 

 

$

(740

)

 

PGRE's share of NOI for the three months ended December 31, 2022

$

100,134

 

 

$

69,746

 

 

$

31,498

 

 

$

(1,110

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOI

$

114,930

 

 

$

67,015

 

 

$

48,655

 

 

$

(740

)

 

Add (subtract) adjustments to arrive at Cash NOI:

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

(4,476

)

 

 

(1,645

)

 

 

(2,801

)

 

 

(30

)

 

 

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

 

(1,912

)

 

 

(730

)

 

 

(1,182

)

 

 

-

 

 

Cash NOI (1)

 

108,542

 

 

 

64,640

 

 

 

44,672

 

 

 

(770

)

 

Less Cash NOI attributable to noncontrolling interests in:

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated joint ventures

 

(20,737

)

 

 

(2,722

)

 

 

(18,015

)

 

 

-

 

 

PGRE's share of Cash NOI for the three months ended December 31, 2023

$

87,805

 

 

$

61,918

 

 

$

26,657

 

 

$

(770

)

 

PGRE's share of Cash NOI for the three months ended December 31, 2022

$

95,504

 

 

$

68,998

 

 

$

27,646

 

 

$

(1,140

)

 

(1)
See page 56 for our definition of this measure.

 

- 17 -


 

img172260412_12.jpg 

NOI

 

(unaudited and in thousands)

 

 

 

 

 

 

 

Year Ended December 31, 2023

 

 

 

 

 

 

 

Total

 

 

New York

 

 

San Francisco

 

 

Other

 

Reconciliation of net loss to NOI and Cash NOI:

 

 

 

 

 

 

 

 

 

 

 

Net loss

$

(371,303

)

 

$

(31,921

)

 

$

(169,650

)

 

$

(169,732

)

 

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

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

250,644

 

 

 

166,868

 

 

 

78,734

 

 

 

5,042

 

 

 

General and administrative

 

61,986

 

 

 

-

 

 

 

-

 

 

 

61,986

 

 

 

Interest and debt expense

 

152,990

 

 

 

98,906

 

 

 

51,043

 

 

 

3,041

 

 

 

Income tax expense (benefit)

 

1,426

 

 

 

5

 

 

 

(75

)

 

 

1,496

 

 

 

Loss from real estate related fund investments

 

96,375

 

 

 

-

 

 

 

-

 

 

 

96,375

 

 

 

NOI from unconsolidated joint ventures (excluding One Steuart Lane)

 

37,360

 

 

 

12,880

 

 

 

24,347

 

 

 

133

 

 

 

Loss from unconsolidated joint ventures

 

270,298

 

 

 

25,001

 

 

 

216,532

 

 

 

28,765

 

 

 

Fee income

 

(21,597

)

 

 

-

 

 

 

-

 

 

 

(21,597

)

 

 

Interest and other income, net

 

(14,837

)

 

 

(2,445

)

 

 

(2,108

)

 

 

(10,284

)

 

 

Other, net

 

1,244

 

 

 

-

 

 

 

-

 

 

 

1,244

 

 

NOI (1)

 

464,586

 

 

 

269,294

 

 

 

198,823

 

 

 

(3,531

)

 

Less NOI attributable to noncontrolling interests in:

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated joint ventures

 

(89,948

)

 

 

(11,007

)

 

 

(78,941

)

 

 

-

 

 

PGRE's share of NOI for the year ended December 31, 2023

$

374,638

 

 

$

258,287

 

 

$

119,882

 

 

$

(3,531

)

 

PGRE's share of NOI for the year ended December 31, 2022

$

397,088

 

 

$

272,197

 

 

$

130,557

 

 

$

(5,666

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOI

$

464,586

 

 

$

269,294

 

 

$

198,823

 

 

$

(3,531

)

 

Add (subtract) adjustments to arrive at Cash NOI:

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

(6,166

)

 

 

1,625

 

 

 

(7,791

)

 

 

-

 

 

 

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

 

(8,099

)

 

 

(2,509

)

 

 

(5,590

)

 

 

-

 

 

Cash NOI (1)

 

450,321

 

 

 

268,410

 

 

 

185,442

 

 

 

(3,531

)

 

Less Cash NOI attributable to noncontrolling interests in:

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated joint ventures

 

(80,809

)

 

 

(11,559

)

 

 

(69,250

)

 

 

-

 

 

PGRE's share of Cash NOI for the year ended December 31, 2023

$

369,512

 

 

$

256,851

 

 

$

116,192

 

 

$

(3,531

)

 

PGRE's share of Cash NOI for the year ended December 31, 2022

$

383,201

 

 

$

273,278

 

 

$

115,589

 

 

$

(5,666

)

 

(1)
See page 56 for our definition of this measure.

- 18 -


 

img172260412_13.jpg 

SAME STORE RESULTS – CASH NOI

 

(unaudited and in thousands)

 

SAME STORE CASH NOI (1)

Three Months Ended December 31, 2023

 

 

 

 

 

 

 

 

 

Total

 

 

New York

 

 

San Francisco

 

 

Other

 

 

 

PGRE's share of Cash NOI for the three months ended December 31, 2023

$

87,805

 

 

$

61,918

 

 

$

26,657

 

 

$

(770

)

 

 

 

Lease termination income

 

(766

)

 

 

(766

)

 

 

-

 

 

 

-

 

 

 

 

Redevelopment and other, net

 

1,969

 

 

 

1,075

 

(2)

 

124

 

 

 

770

 

 

 

PGRE's share of Same Store Cash NOI for the three months ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2023

$

89,008

 

 

$

62,227

 

 

$

26,781

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

)

 

 

 

Redevelopment and other, net

 

1,266

 

 

 

118

 

(2)

 

8

 

 

 

1,140

 

 

 

PGRE's share of Same Store Cash NOI for the three months ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2022

$

96,770

 

 

$

69,116

 

 

$

27,654

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Decrease in PGRE's share of Same Store Cash NOI

$

(7,762

)

 

$

(6,889

)

 

$

(873

)

 

$

-

 

 

 

% Decrease

 

(8.0

%)

 

 

(10.0

%)

 

 

(3.2

%)

 

 

 

 

 

(1)
See page 56 for our definition of this measure.
(2)
Includes our share of Cash NOI attributable to 60 Wall Street, which has been taken “out-of-service” for redevelopment.

 

- 19 -


 

img172260412_13.jpg 

SAME STORE RESULTS – CASH NOI

 

(unaudited and in thousands)

 

SAME STORE CASH NOI (1)

Year Ended December 31, 2023

 

 

 

 

 

 

 

 

 

Total

 

 

New York

 

 

San Francisco

 

 

Other

 

 

 

PGRE's share of Cash NOI for the year ended December 31, 2023

$

369,512

 

 

$

256,851

 

 

$

116,192

 

 

$

(3,531

)

 

 

 

Lease termination income

 

(8,070

)

 

 

(6,887

)

 

 

(1,183

)

 

 

-

 

 

 

 

Redevelopment and other, net

 

4,682

 

 

 

1,027

 

(2)

 

124

 

 

 

3,531

 

 

 

PGRE's share of Same Store Cash NOI for the year ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2023

$

366,124

 

 

$

250,991

 

 

$

115,133

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

)

 

 

 

Lease termination income

 

(1,875

)

 

 

(1,875

)

 

 

-

 

 

 

-

 

 

 

 

Redevelopment and other, net

 

3,921

 

 

 

(1,532

)

(2)

 

(213

)

 

 

5,666

 

 

 

PGRE's share of Same Store Cash NOI for the year ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2022

$

385,247

 

 

$

269,871

 

 

$

115,376

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Decrease in PGRE's share of Same Store Cash NOI

$

(19,123

)

 

$

(18,880

)

 

$

(243

)

 

$

-

 

 

 

% Decrease

 

(5.0

%)

 

 

(7.0

%)

 

 

(0.2

%)

 

 

 

 

 

(1)
See page 56 for our definition of this measure.
(2)
Includes our share of Cash NOI attributable to 60 Wall Street, which has been taken “out-of-service” for redevelopment.

- 20 -


 

img172260412_13.jpg 

SAME STORE RESULTS – NOI

 

(unaudited and in thousands)

 

SAME STORE NOI (1)

Three Months Ended December 31, 2023

 

 

 

 

 

 

 

 

 

Total

 

 

New York

 

 

San Francisco

 

 

Other

 

 

 

PGRE's share of NOI for the three months ended December 31, 2023

$

92,533

 

 

$

64,423

 

 

$

28,850

 

 

$

(740

)

 

 

 

Lease termination income

 

(766

)

 

 

(766

)

 

 

-

 

 

 

-

 

 

 

 

Non-cash write-offs of straight-line rent receivables

 

363

 

 

 

277

 

 

 

86

 

 

 

-

 

 

 

 

Redevelopment and other, net

 

1,939

 

 

 

1,075

 

(2)

 

124

 

 

 

740

 

 

 

PGRE's share of Same Store NOI for the three months ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2023

$

94,069

 

 

$

65,009

 

 

$

29,060

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

)

 

 

 

Non-cash write-offs of straight-line rent receivables

 

445

 

 

 

-

 

 

 

445

 

 

 

-

 

 

 

 

Redevelopment and other, net

 

829

 

 

 

118

 

(2)

 

(399

)

 

 

1,110

 

 

 

PGRE's share of Same Store NOI for the three months ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2022

$

101,408

 

 

$

69,864

 

 

$

31,544

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Decrease in PGRE's share of Same Store NOI

$

(7,339

)

 

$

(4,855

)

 

$

(2,484

)

 

$

-

 

 

 

% Decrease

 

(7.2

%)

 

 

(6.9

%)

 

 

(7.9

%)

 

 

 

 

 

(1)
See page 56 for our definition of this measure.
(2)
Includes our share of NOI attributable to 60 Wall Street, which has been taken “out-of-service” for redevelopment.

 

- 21 -


 

img172260412_13.jpg 

SAME STORE RESULTS – NOI

 

(unaudited and in thousands)

 

SAME STORE NOI (1)

Year Ended December 31, 2023

 

 

 

 

 

 

 

 

 

 

Total

 

 

New York

 

 

San Francisco

 

 

Other

 

 

 

PGRE's share of NOI for the year ended December 31, 2023

$

374,638

 

 

$

258,287

 

 

$

119,882

 

 

$

(3,531

)

 

 

 

Lease termination income

 

(8,070

)

 

 

(6,887

)

 

 

(1,183

)

 

 

-

 

 

 

 

Non-cash write-offs of straight-line rent receivables

 

14,413

 

 

 

6,917

 

(2)

 

7,496

 

(2)

 

-

 

 

 

 

Redevelopment and other, net

 

4,629

 

 

 

1,031

 

(3)

 

67

 

 

 

3,531

 

 

 

PGRE's share of Same Store NOI for the year ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2023

$

385,610

 

 

$

259,348

 

 

$

126,262

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

)

 

 

 

Lease termination income

 

(1,875

)

 

 

(1,875

)

 

 

-

 

 

 

-

 

 

 

 

Non-cash write-offs of straight-line rent receivables

 

2,425

 

 

 

1,980

 

 

 

445

 

 

 

-

 

 

 

 

Redevelopment and other, net

 

4,136

 

 

 

(910

)

(3)

 

(620

)

 

 

5,666

 

 

 

PGRE's share of Same Store NOI for the year ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2022

$

401,774

 

 

$

271,392

 

 

$

130,382

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Decrease in PGRE's share of Same Store NOI

$

(16,164

)

 

$

(12,044

)

 

$

(4,120

)

 

$

-

 

 

 

% Decrease

 

(4.0

%)

 

 

(4.4

%)

 

 

(3.2

%)

 

 

 

 

 

(1)
See page 56 for our definition of this measure.
(2)
Includes write-offs related to the terminated SVB Securities lease at 1301 Avenue of the Americas in our New York portfolio and the surrendered JPMorgan Chase space at One Front Street in our San Francisco portfolio.
(3)
Includes our share of NOI attributable to 60 Wall Street, which has been taken “out-of-service” for redevelopment.

- 22 -


 

img172260412_13.jpg 

CONSOLIDATED JOINT VENTURES – BALANCE SHEETS

 

 

(unaudited and in thousands)

 

 

 

 

 

As of December 31, 2023

 

 

 

 

 

 

Total Consolidated

 

 

1633

 

 

One Market

 

 

300 Mission

 

 

 

 

 

 

Joint Ventures

 

 

Broadway

 

 

Plaza

 

 

Street

 

 

PGRE Ownership

 

 

 

90.0%

 

 

49.0%

 

 

31.1%

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate, net

$

3,284,532

 

 

$

1,675,890

 

 

$

1,141,827

 

 

$

466,815

 

 

 

Cash and cash equivalents

 

145,320

 

 

 

59,111

 

 

 

74,276

 

 

 

11,933

 

 

 

Restricted cash

 

1,319

 

 

 

78

 

 

 

1,241

 

 

 

-

 

 

 

Accounts and other receivables

 

9,871

 

 

 

3,814

 

 

 

5,323

 

 

 

734

 

 

 

Deferred rent receivable

 

207,938

 

 

 

99,426

 

 

 

84,395

 

 

 

24,117

 

 

 

Deferred charges, net

 

45,190

 

 

 

21,915

 

 

 

15,093

 

 

 

8,182

 

 

 

Intangible assets, net

 

38,209

 

 

 

32,044

 

 

 

5,407

 

 

 

758

 

 

 

Other assets

 

7,365

 

 

 

850

 

 

 

6,015

 

 

 

500

 

 

Total Assets

$

3,739,744

 

 

$

1,893,128

 

 

$

1,333,577

 

 

$

513,039

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes and mortgages payable, net

$

2,450,401

 

 

$

1,244,109

 

 

$

974,764

 

 

$

231,528

 

 

 

Accounts payable and accrued expenses

 

48,862

 

 

 

9,825

 

 

 

28,260

 

 

 

10,777

 

 

 

Intangible liabilities, net

 

17,180

 

 

 

11,903

 

 

 

4,959

 

 

 

318

 

 

 

Other liabilities

 

4,833

 

 

 

156

 

 

 

4,631

 

 

 

46

 

 

Total Liabilities

 

2,521,276

 

 

 

1,265,993

 

 

 

1,012,614

 

 

 

242,669

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

Paramount Group, Inc. equity

 

804,543

 

 

 

563,957

 

 

 

157,341

 

 

 

83,245

 

 

 

Noncontrolling interests

 

413,925

 

 

 

63,178

 

 

 

163,622

 

 

 

187,125

 

 

Total Equity

 

1,218,468

 

 

 

627,135

 

 

 

320,963

 

 

 

270,370

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Equity

$

3,739,744

 

 

$

1,893,128

 

 

$

1,333,577

 

 

$

513,039

 

 

 

- 23 -


 

img172260412_13.jpg 

CONSOLIDATED JOINT VENTURES – BALANCE SHEETS

 

 

(unaudited and in thousands)

 

 

 

 

 

As of December 31, 2022

 

 

 

 

 

 

Total Consolidated

 

 

1633

 

 

One Market

 

 

300 Mission

 

 

 

 

 

 

Joint Ventures

 

 

Broadway

 

 

Plaza

 

 

Street

 

 

PGRE Ownership

 

 

 

90.0%

 

 

49.0%

 

 

31.1%

 

 

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

 

 

 

Restricted cash

 

1,316

 

 

 

78

 

 

 

1,238

 

 

 

-

 

 

 

Accounts and other receivables

 

9,997

 

 

 

8,340

 

 

 

984

 

 

 

673

 

 

 

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

 

 

Total Assets

$

3,819,298

 

 

$

1,959,838

 

 

$

1,309,436

 

 

$

550,024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

Intangible liabilities, net

 

21,936

 

 

 

13,949

 

 

 

7,491

 

 

 

496

 

 

 

Other liabilities

 

5,803

 

 

 

1,185

 

 

 

4,563

 

 

 

55

 

 

Total Liabilities

 

2,579,048

 

 

 

1,277,928

 

 

 

1,019,141

 

 

 

281,979

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

Paramount Group, Inc. equity

 

838,132

 

 

 

613,203

 

 

 

142,315

 

 

 

82,614

 

 

 

Noncontrolling interests

 

402,118

 

 

 

68,707

 

 

 

147,980

 

 

 

185,431

 

 

Total Equity

 

1,240,250

 

 

 

681,910

 

 

 

290,295

 

 

 

268,045

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Equity

$

3,819,298

 

 

$

1,959,838

 

 

$

1,309,436

 

 

$

550,024

 

 

 

- 24 -


 

img172260412_14.jpg 

CONSOLIDATED JOINT VENTURES – OPERATING RESULTS

 

(unaudited and in thousands)

 

 

 

 

 

Three Months Ended December 31, 2023

 

 

 

 

 

 

Total Consolidated

 

 

1633

 

 

One Market

 

 

300 Mission

 

 

 

 

 

 

Joint Ventures

 

 

Broadway

 

 

Plaza

 

 

Street

 

 

Total revenues

$

104,988

 

 

$

49,759

 

 

$

41,947

 

 

$

13,282

 

 

Total operating expenses

 

37,664

 

 

 

19,703

 

 

 

13,496

 

 

 

4,465

 

 

Net operating income (1)

 

67,324

 

 

 

30,056

 

 

 

28,451

 

 

 

8,817

 

 

Depreciation and amortization

 

(34,073

)

 

 

(19,235

)

 

 

(10,937

)

 

 

(3,901

)

 

Interest and other income, net

 

1,344

 

 

 

620

 

 

 

643

 

 

 

81

 

 

Interest and debt expense

 

(22,765

)

 

 

(9,804

)

 

 

(10,304

)

 

 

(2,657

)

 

Income tax expense

 

(3

)

 

 

-

 

 

 

-

 

 

 

(3

)

 

Net income

$

11,827

 

 

$

1,637

 

 

$

7,853

 

 

$

2,337

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PGRE's share

 

 

 

 

 

 

 

 

 

 

 

 

Ownership

Total

 

 

90.0%

 

 

49.0%

 

 

31.1%

 

 

 

Net income

$

6,039

 

 

$

1,471

 

 

$

3,841

 

 

$

727

 

 

 

Management fee income

 

1,203

 

 

 

417

 

 

 

211

 

 

 

575

 

 

 

PGRE's share of net income

 

7,242

 

 

 

1,888

 

 

 

4,052

 

 

 

1,302

 

 

 

Real estate depreciation and amortization

 

23,884

 

 

 

17,312

 

 

 

5,359

 

 

 

1,213

 

 

 

FFO/Core FFO (1)

$

31,126

 

 

$

19,200

 

 

$

9,411

 

 

$

2,515

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncontrolling interests' share

 

 

 

 

 

 

 

 

 

 

 

 

Ownership

Total

 

 

10.0%

 

 

51.0%

 

 

68.9%

 

 

 

Net income

$

5,788

 

 

$

166

 

 

$

4,012

 

 

$

1,610

 

 

 

Management fee expense

 

(1,203

)

 

 

(417

)

 

 

(211

)

 

 

(575

)

 

 

Net income (loss) attributable to noncontrolling interests

 

4,585

 

 

 

(251

)

 

 

3,801

 

 

 

1,035

 

 

 

Real estate depreciation and amortization

 

10,189

 

 

 

1,923

 

 

 

5,578

 

 

 

2,688

 

 

 

FFO/Core FFO (1)

$

14,774

 

 

$

1,672

 

 

$

9,379

 

 

$

3,723

 

 

 

(1)
See page 56 for our definition of these measures.

 

- 25 -


 

img172260412_14.jpg 

CONSOLIDATED JOINT VENTURES – OPERATING RESULTS

 

(unaudited and in thousands)

 

 

 

 

 

Three Months Ended December 31, 2022

 

 

 

 

 

 

Total Consolidated

 

 

1633

 

 

One Market

 

 

300 Mission

 

 

 

 

 

 

Joint Ventures

 

 

Broadway

 

 

Plaza

 

 

Street

 

 

Total revenues

$

93,584

 

 

$

48,314

 

 

$

33,306

 

 

$

11,964

 

 

Total operating expenses

 

32,264

 

 

 

18,310

 

 

 

10,019

 

 

 

3,935

 

 

Net operating income (1)

 

61,320

 

 

 

30,004

 

 

 

23,287

 

 

 

8,029

 

 

Depreciation and amortization

 

(29,518

)

 

 

(14,140

)

 

 

(11,411

)

 

 

(3,967

)

 

Interest and other income, net

 

817

 

 

 

428

 

 

 

216

 

 

 

173

 

 

Interest and debt expense

 

(22,604

)

 

 

(9,808

)

 

 

(10,304

)

 

 

(2,492

)

 

Income before income taxes

 

10,015

 

 

 

6,484

 

 

 

1,788

 

 

 

1,743

 

 

Income tax expense

 

(6

)

 

 

(6

)

 

 

-

 

 

 

-

 

 

Net income

$

10,009

 

 

$

6,478

 

 

$

1,788

 

 

$

1,743

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PGRE's share

 

 

 

 

 

 

 

 

 

 

 

 

Ownership

Total

 

 

90.0%

 

 

49.0%

 

 

31.1%

 

 

 

Net income

$

7,234

 

 

$

5,827

 

 

$

869

 

 

$

538

 

 

 

Management fee income

 

1,177

 

 

 

429

 

 

 

179

 

 

 

569

 

 

 

PGRE's share of net income

 

8,411

 

 

 

6,256

 

 

 

1,048

 

 

 

1,107

 

 

 

Real estate depreciation and amortization

 

19,551

 

 

 

12,726

 

 

 

5,591

 

 

 

1,234

 

 

 

FFO/Core FFO (1)

$

27,962

 

 

$

18,982

 

 

$

6,639

 

 

$

2,341

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncontrolling interests' share

 

 

 

 

 

 

 

 

 

 

 

 

Ownership

Total

 

 

10.0%

 

 

51.0%

 

 

68.9%

 

 

 

Net income

$

2,775

 

 

$

651

 

 

$

919

 

 

$

1,205

 

 

 

Management fee expense

 

(1,177

)

 

 

(429

)

 

 

(179

)

 

 

(569

)

 

 

Net income attributable to noncontrolling interests

 

1,598

 

 

 

222

 

 

 

740

 

 

 

636

 

 

 

Real estate depreciation and amortization

 

9,967

 

 

 

1,414

 

 

 

5,820

 

 

 

2,733

 

 

 

FFO/Core FFO (1)

$

11,565

 

 

$

1,636

 

 

$

6,560

 

 

$

3,369

 

 

 

(1)
See page 56 for our definition of these measures.

 

- 26 -


 

img172260412_14.jpg 

CONSOLIDATED JOINT VENTURES – OPERATING RESULTS

 

(unaudited and in thousands)

 

 

 

 

 

Year Ended December 31, 2023

 

 

 

 

 

 

Total Consolidated

 

 

1633

 

 

One Market

 

 

300 Mission

 

 

 

 

 

 

Joint Ventures

 

 

Broadway

 

 

Plaza

 

 

Street

 

 

Total revenues

$

420,665

 

 

$

205,278

 

 

$

164,673

 

 

$

50,714

 

 

Total operating expenses

 

145,183

 

 

 

78,588

 

 

 

49,955

 

 

 

16,640

 

 

Net operating income (1)

 

275,482

 

 

 

126,690

 

 

 

114,718

 

 

 

34,074

 

 

Depreciation and amortization

 

(123,142

)

 

 

(64,430

)

 

 

(43,151

)

 

 

(15,561

)

 

Interest and other income, net

 

4,129

 

 

 

2,021

 

 

 

1,405

 

 

 

703

 

 

Interest and debt expense

 

(89,952

)

 

 

(38,909

)

 

 

(40,891

)

 

 

(10,152

)

 

Income before income taxes

 

66,517

 

 

 

25,372

 

 

 

32,081

 

 

 

9,064

 

 

Income tax benefit (expense)

 

72

 

 

 

(5

)

 

 

127

 

 

 

(50

)

 

Net income

$

66,589

 

 

$

25,367

 

 

$

32,208

 

 

$

9,014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PGRE's share

 

 

 

 

 

 

 

 

 

 

 

 

Ownership

Total

 

 

90.0%

 

 

49.0%

 

 

31.1%

 

 

 

Net income

$

41,401

 

 

$

22,830

 

 

$

15,773

 

 

$

2,798

 

 

 

Management fee income

 

4,724

 

 

 

1,663

 

 

 

778

 

 

 

2,283

 

 

 

PGRE's share of net income

 

46,125

 

 

 

24,493

 

 

 

16,551

 

 

 

5,081

 

 

 

Real estate depreciation and amortization

 

83,967

 

 

 

57,988

 

 

 

21,143

 

 

 

4,836

 

 

 

FFO/Core FFO (1)

$

130,092

 

 

$

82,481

 

 

$

37,694

 

 

$

9,917

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncontrolling interests' share

 

 

 

 

 

 

 

 

 

 

 

 

Ownership

Total

 

 

10.0%

 

 

51.0%

 

 

68.9%

 

 

 

Net income

$

25,188

 

 

$

2,537

 

 

$

16,435

 

 

$

6,216

 

 

 

Management fee expense

 

(4,724

)

 

 

(1,663

)

 

 

(778

)

 

 

(2,283

)

 

 

Net income attributable to noncontrolling interests

 

20,464

 

 

 

874

 

 

 

15,657

 

 

 

3,933

 

 

 

Real estate depreciation and amortization

 

39,175

 

 

 

6,442

 

 

 

22,008

 

 

 

10,725

 

 

 

FFO/Core FFO (1)

$

59,639

 

 

$

7,316

 

 

$

37,665

 

 

$

14,658

 

 

 

(1)
See page 56 for our definition of these measures.

- 27 -


 

img172260412_14.jpg 

CONSOLIDATED JOINT VENTURES – OPERATING RESULTS

 

 

(unaudited and in thousands)

 

 

 

 

 

Year Ended December 31, 2022

 

 

 

 

 

 

Total Consolidated

 

 

1633

 

 

One Market

 

 

300 Mission

 

 

 

 

 

 

Joint Ventures

 

 

Broadway

 

 

Plaza

 

 

Street

 

 

Total revenues

$

386,858

 

 

$

195,660

 

 

$

143,275

 

 

$

47,923

 

 

Total operating expenses

 

130,362

 

 

 

74,926

 

 

 

40,673

 

 

 

14,763

 

 

Net operating income (1)

 

256,496

 

 

 

120,734

 

 

 

102,602

 

 

 

33,160

 

 

Depreciation and amortization

 

(113,329

)

 

 

(56,701

)

 

 

(40,441

)

 

 

(16,187

)

 

Interest and other income, net

 

1,380

 

 

 

711

 

 

 

395

 

 

 

274

 

 

Interest and debt expense

 

(89,770

)

 

 

(38,920

)

 

 

(40,885

)

 

 

(9,965

)

 

Income before income taxes

 

54,777

 

 

 

25,824

 

 

 

21,671

 

 

 

7,282

 

 

Income tax expense

 

(17

)

 

 

(13

)

 

 

(2

)

 

 

(2

)

 

Net income

$

54,760

 

 

$

25,811

 

 

$

21,669

 

 

$

7,280

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PGRE's share

 

 

 

 

 

 

 

 

 

 

 

 

Ownership

Total

 

 

90.0%

 

 

49.0%

 

 

31.1%

 

 

 

Net income

$

36,094

 

 

$

23,228

 

 

$

10,611

 

 

$

2,255

 

 

 

Management fee income

 

4,685

 

 

 

1,694

 

 

 

743

 

 

 

2,248

 

 

 

PGRE's share of net income

 

40,779

 

 

 

24,922

 

 

 

11,354

 

 

 

4,503

 

 

 

Real estate depreciation and amortization

 

75,877

 

 

 

51,031

 

 

 

19,815

 

 

 

5,031

 

 

 

FFO/Core FFO (1)

$

116,656

 

 

$

75,953

 

 

$

31,169

 

 

$

9,534

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncontrolling interests' share

 

 

 

 

 

 

 

 

 

 

 

 

Ownership

Total

 

 

10.0%

 

 

51.0%

 

 

68.9%

 

 

 

Net income

$

18,666

 

 

$

2,583

 

 

$

11,058

 

 

$

5,025

 

 

 

Management fee expense

 

(4,685

)

 

 

(1,694

)

 

 

(743

)

 

 

(2,248

)

 

 

Net income attributable to noncontrolling interests

 

13,981

 

 

 

889

 

 

 

10,315

 

 

 

2,777

 

 

 

Real estate depreciation and amortization

 

37,452

 

 

 

5,670

 

 

 

20,626

 

 

 

11,156

 

 

 

FFO/Core FFO (1)

$

51,433

 

 

$

6,559

 

 

$

30,941

 

 

$

13,933

 

 

 

(1)
See page 56 for our definition of these measures.

 

- 28 -


 

img172260412_14.jpg 

UNCONSOLIDATED JOINT VENTURES – BALANCE SHEETS

 

(unaudited and in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2023

 

 

 

 

 

 

 

 

 

 

712 Fifth

 

 

Market

 

 

55 Second

 

 

111 Sutter

 

 

One Steuart

 

 

 

 

 

 

 

 

 

 

Total

 

 

Avenue

 

 

Center

 

 

Street

 

 

Street

 

 

Lane

 

 

Other (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PGRE Ownership

 

 

 

50.0%

 

 

67.0%

 

 

44.1%

 

 

49.0%

 

 

35.0%

 

(2)

Various

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate, net

$

1,528,595

 

 

$

219,297

 

 

$

272,113

 

 

$

230,516

 

 

$

142,426

 

 

$

50

 

 

$

664,193

 

 

Cash and cash equivalents

 

67,499

 

 

 

24,516

 

 

 

5,300

 

 

 

21,318

 

 

 

2,040

 

 

 

10,822

 

 

 

3,503

 

 

Restricted cash

 

99,856

 

 

 

5,480

 

 

 

12,286

 

 

 

-

 

 

 

1,441

 

 

 

49

 

 

 

80,600

 

 

Accounts and other receivables

 

8,601

 

 

 

4,960

 

 

 

1,539

 

 

 

585

 

 

 

1,224

 

 

 

123

 

 

 

170

 

 

Deferred rent receivable

 

35,448

 

 

 

18,844

 

 

 

6,145

 

 

 

4,242

 

 

 

3,087

 

 

 

-

 

 

 

3,130

 

 

Deferred charges, net

 

13,643

 

 

 

8,989

 

 

 

2,540

 

 

 

1,120

 

 

 

994

 

 

 

-

 

 

 

-

 

 

Intangible assets, net

 

52,164

 

 

 

-

 

 

 

5,809

 

 

 

6,283

 

 

 

1,524

 

 

 

-

 

 

 

38,548

 

 

For-sale residential condominium units

 

246,824

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

246,824

 

 

 

-

 

 

Other assets

 

26,487

 

 

 

227

 

 

 

13,032

 

 

 

269

 

 

 

194

 

 

 

130

 

 

 

12,635

 

Total Assets

$

2,079,117

 

 

$

282,313

 

 

$

318,764

 

 

$

264,333

 

 

$

152,930

 

 

$

257,998

 

 

$

802,779

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes and mortgages payable, net

$

1,744,706

 

 

$

298,596

 

 

$

412,996

 

 

$

187,068

 

 

$

163,282

 

 

$

-

 

 

$

682,764

 

 

Accounts payable and accrued expenses

 

92,770

 

 

 

7,542

 

 

 

9,830

 

 

 

5,025

 

 

 

4,296

 

 

 

2,663

 

 

 

63,414

 

 

Intangible liabilities, net

 

5,026

 

 

 

-

 

 

 

462

 

 

 

3,919

 

 

 

645

 

 

 

-

 

 

 

-

 

 

Other liabilities

 

5,692

 

 

 

178

 

 

 

2,967

 

 

 

208

 

 

 

243

 

 

 

25

 

 

 

2,071

 

Total Liabilities

 

1,848,194

 

 

 

306,316

 

 

 

426,255

 

 

 

196,220

 

 

 

168,466

 

 

 

2,688

 

 

 

748,249

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Equity

 

230,923

 

 

 

(24,003

)

 

 

(107,491

)

 

 

68,113

 

 

 

(15,536

)

 

 

255,310

 

 

 

54,530

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Equity

$

2,079,117

 

 

$

282,313

 

 

$

318,764

 

 

$

264,333

 

 

$

152,930

 

 

$

257,998

 

 

$

802,779

 

 

(1)
Represents 1600 Broadway, 60 Wall Street (“out-of-service” for redevelopment), and Oder-Center, Germany.
(2)
RDF, our consolidated Residential Development Fund, owns a 35% economic interest in One Steuart Lane, a for-sale residential condominium project. Our economic interest in One Steuart Lane (based on our 7.4% interest in RDF) is 2.6%.

 

 

- 29 -


 

img172260412_14.jpg 

UNCONSOLIDATED JOINT VENTURES – BALANCE SHEETS

 

 

(unaudited and in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2022

 

 

 

 

 

 

 

 

 

 

712 Fifth

 

 

Market

 

 

55 Second

 

 

111 Sutter

 

 

One Steuart

 

 

 

 

 

 

 

 

 

 

Total

 

 

Avenue

 

 

Center

 

 

Street

 

 

Street

 

 

Lane

 

 

Other (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PGRE Ownership

 

 

 

50.0%

 

 

67.0%

 

 

44.1%

 

 

49.0%

 

 

35.0%

 

(2)

Various

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate, net

$

2,377,084

 

 

$

212,002

 

 

$

627,169

 

 

$

359,405

 

 

$

149,653

 

 

$

93

 

 

$

1,028,762

 

 

Cash and cash equivalents

 

140,818

 

 

 

28,335

 

 

 

38,918

 

 

 

15,322

 

 

 

3,950

 

 

 

29

 

 

 

54,264

 

 

Restricted cash

 

111,722

 

 

 

5,472

 

 

 

-

 

 

 

-

 

 

 

2,431

 

 

 

4,808

 

 

 

99,011

 

 

Accounts and other receivables

 

4,830

 

 

 

3,642

 

 

 

453

 

 

 

326

 

 

 

17

 

 

 

123

 

 

 

269

 

 

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

 

322,232

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

322,232

 

 

 

-

 

 

Other assets

 

37,826

 

 

 

189

 

 

 

22,651

 

 

 

211

 

 

 

1,564

 

 

 

282

 

 

 

12,929

 

Total Assets

$

3,108,509

 

 

$

277,127

 

 

$

710,406

 

 

$

390,702

 

 

$

164,269

 

 

$

327,567

 

 

$

1,238,438

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes and mortgages payable, net

$

1,834,916

 

 

$

298,186

 

 

$

408,967

 

 

$

186,909

 

 

$

158,666

 

 

$

98,380

 

 

$

683,808

 

 

Accounts payable and accrued expenses

 

47,302

 

 

 

5,620

 

 

 

10,768

 

 

 

3,264

 

 

 

4,262

 

 

 

8,158

 

 

 

15,230

 

 

Intangible liabilities, net

 

10,972

 

 

 

-

 

 

 

2,331

 

 

 

7,327

 

 

 

1,314

 

 

 

-

 

 

 

-

 

 

Other liabilities

 

3,481

 

 

 

176

 

 

 

232

 

 

 

246

 

 

 

244

 

 

 

125

 

 

 

2,458

 

Total Liabilities

 

1,896,671

 

 

 

303,982

 

 

 

422,298

 

 

 

197,746

 

 

 

164,486

 

 

 

106,663

 

 

 

701,496

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Equity

 

1,211,838

 

 

 

(26,855

)

 

 

288,108

 

 

 

192,956

 

 

 

(217

)

 

 

220,904

 

 

 

536,942

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Equity

$

3,108,509

 

 

$

277,127

 

 

$

710,406

 

 

$

390,702

 

 

$

164,269

 

 

$

327,567

 

 

$

1,238,438

 

 

(1)
Represents 1600 Broadway, 60 Wall Street (“out-of-service” for redevelopment), and Oder-Center, Germany.
(2)
RDF, our consolidated Residential Development Fund, owns a 35% economic interest in One Steuart Lane, a for-sale residential condominium project. Our economic interest in One Steuart Lane (based on our 7.4% interest in RDF) is 2.6%.

 

 

 

- 30 -


 

img172260412_14.jpg 

UNCONSOLIDATED JOINT VENTURES – OPERATING RESULTS

 

(unaudited and in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2023

 

 

 

 

 

 

 

 

 

 

712 Fifth

 

 

Market

 

 

55 Second

 

 

111 Sutter

 

 

One Steuart

 

 

 

 

 

 

 

 

 

 

Total

 

 

Avenue

 

 

Center

 

 

Street

 

 

Street

 

 

Lane

 

 

Other (1)

 

 

Total revenues

$

41,056

 

 

$

12,435

 

 

$

9,350

 

 

$

7,705

 

 

$

3,924

 

 

$

3,752

 

(2)

$

3,890

 

 

Total operating expenses

 

27,787

 

 

 

7,296

 

 

 

7,253

 

 

 

3,546

 

 

 

1,936

 

 

 

6,325

 

(2)

 

1,431

 

 

Net operating income (loss) (3)

 

13,269

 

 

 

5,139

 

 

 

2,097

 

 

 

4,159

 

 

 

1,988

 

 

 

(2,573

)

 

 

2,459

 

 

Depreciation and amortization

 

(15,386

)

 

 

(3,130

)

 

 

(4,876

)

 

 

(3,982

)

 

 

(2,322

)

 

 

-

 

 

 

(1,076

)

 

Interest and other income, net

 

809

 

 

 

233

 

 

 

256

 

 

 

217

 

 

 

3

 

 

 

95

 

 

 

5

 

 

Interest and debt expense

 

(20,229

)

 

 

(2,702

)

 

 

(3,636

)

 

 

(1,856

)

 

 

(3,122

)

 

 

-

 

 

 

(8,913

)

 

Real estate impairment loss

 

(461,151

)

 

 

-

 

 

 

(341,872

)

 

 

(119,279

)

 

 

-

 

 

 

-

 

 

 

-

 

 

Net loss

$

(482,688

)

 

$

(460

)

 

$

(348,031

)

 

$

(120,741

)

 

$

(3,453

)

 

$

(2,478

)

 

$

(7,525

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PGRE's share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ownership

Total

 

 

50.0%

 

 

67.0%

 

 

44.1%

 

 

49.0%

 

 

35.0%

 

 

Various

 

 

 

Net loss

$

(209,406

)

 

$

(230

)

 

$

(153,032

)

(4)

$

(53,234

)

 

$

(1,692

)

 

$

(867

)

 

$

(351

)

 

 

Step-up basis adjustment

 

(80

)

 

 

-

 

 

 

-

 

 

 

(4

)

 

 

-

 

 

 

(49

)

 

 

(27

)

 

 

Adjustments to equity in earnings of unconsolidated
   joint ventures

 

2,326

 

 

 

230

 

 

 

-

 

 

 

-

 

 

 

1,692

 

 

 

-

 

 

 

404

 

 

 

PGRE's share of net (loss) income

 

(207,160

)

 

 

-

 

 

 

(153,032

)

 

 

(53,238

)

 

 

-

 

 

 

(916

)

 

 

26

 

 

 

Real estate depreciation and amortization

 

7,857

 

 

 

1,565

 

 

 

3,267

 

 

 

1,760

 

 

 

1,138

 

 

 

-

 

 

 

127

 

 

 

Real estate impairment loss

 

201,496

 

 

 

-

 

 

 

148,906

 

(4)

 

52,590

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

FFO (3)

 

2,193

 

 

 

1,565

 

 

 

(859

)

 

 

1,112

 

 

 

1,138

 

 

 

(916

)

 

 

153

 

 

 

Adjustments to equity in earnings of unconsolidated
   joint ventures

 

(2,326

)

 

 

(230

)

 

 

-

 

 

 

-

 

 

 

(1,692

)

 

 

-

 

 

 

(404

)

 

 

FFO attributable to One Steuart Lane

 

916

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

916

 

 

 

-

 

 

 

Other non-core items

 

393

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

393

 

 

 

Core FFO (3)

$

1,176

 

 

$

1,335

 

 

$

(859

)

 

$

1,112

 

 

$

(554

)

 

$

-

 

 

$

142

 

 

 

(1)
Represents 1600 Broadway, 60 Wall Street (“out-of-service” for redevelopment), and Oder-Center, Germany.
(2)
Includes proceeds and cost of sales from the sale of residential condominium units at One Steuart Lane.
(3)
See page 56 for our definition of this measure.
(4)
The joint venture that owns Market Center recognized a $341,872 non-cash real estate impairment loss, of which our 67.0% share was $229,054. Given that our share of the real estate impairment loss together with our share of operating and other losses recognized in the three months ended December 31, 2023 brought the basis of our investment in the joint venture below zero, in accordance with GAAP, we were limited to recognizing $148,906 of the real estate impairment loss during the three months ended December 31, 2023.

- 31 -


 

img172260412_14.jpg 

UNCONSOLIDATED JOINT VENTURES – OPERATING RESULTS

 

(unaudited and in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2022

 

 

 

 

 

 

 

 

 

 

712 Fifth

 

 

Market

 

 

55 Second

 

 

111 Sutter

 

 

One Steuart

 

 

 

 

 

 

 

 

 

 

Total

 

 

Avenue

 

 

Center

 

 

Street

 

 

Street

 

 

Lane

 

 

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

 

 

 

1,355

 

 

 

3,386

 

 

Net operating income (2)

 

18,146

 

 

 

6,537

 

 

 

6,795

 

 

 

4,457

 

 

 

1,881

 

 

 

(1,355

)

 

 

(169

)

 

Depreciation and amortization

 

(17,809

)

 

 

(2,801

)

 

 

(7,618

)

 

 

(4,128

)

 

 

(2,117

)

 

 

(18

)

 

 

(1,127

)

 

Interest and other income (loss), net

 

504

 

 

 

182

 

 

 

244

 

 

 

79

 

 

 

11

 

 

 

(2

)

 

 

(10

)

 

Interest and debt expense

 

(14,273

)

 

 

(2,702

)

 

 

(3,514

)

 

 

(1,856

)

 

 

(2,524

)

 

 

(2,605

)

 

 

(1,072

)

 

Real estate impairment loss

 

(64,663

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(64,663

)

 

 

-

 

 

 

-

 

 

(Loss) income before income taxes

 

(78,095

)

 

 

1,216

 

 

 

(4,093

)

 

 

(1,448

)

 

 

(67,412

)

 

 

(3,980

)

 

 

(2,378

)

 

Income tax expense

 

(6

)

 

 

-

 

 

 

-

 

 

 

(2

)

 

 

-

 

 

 

-

 

 

 

(4

)

 

Net (loss) income

$

(78,101

)

 

$

1,216

 

 

$

(4,093

)

 

$

(1,450

)

 

$

(67,412

)

 

$

(3,980

)

 

$

(2,382

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PGRE's share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ownership

Total

 

 

50.0%

 

 

67.0%

 

 

44.1%

 

 

49.0%

 

 

35.0%

 

 

Various

 

 

 

Net (loss) income

$

(37,327

)

 

$

608

 

 

$

(2,744

)

 

$

(645

)

 

$

(33,030

)

 

$

(1,393

)

 

$

(123

)

 

 

Step-up basis adjustment

 

(37

)

 

 

-

 

 

 

-

 

 

 

(2

)

 

 

-

 

 

 

-

 

 

 

(35

)

 

 

Adjustments to equity in earnings of
   unconsolidated joint ventures

 

(561

)

 

 

(608

)

 

 

-

 

 

 

-

 

 

 

47

 

 

 

-

 

 

 

-

 

 

 

PGRE's share of net loss

 

(37,925

)

 

 

-

 

 

 

(2,744

)

 

 

(647

)

 

 

(32,983

)

 

 

(1,393

)

 

 

(158

)

 

 

Real estate depreciation and amortization

 

9,509

 

 

 

1,400

 

 

 

5,104

 

 

 

1,822

 

 

 

1,038

 

 

 

6

 

 

 

139

 

 

 

Real estate impairment loss

 

31,685

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

31,685

 

 

 

-

 

 

 

-

 

 

 

FFO (2)

 

3,269

 

 

 

1,400

 

 

 

2,360

 

 

 

1,175

 

 

 

(260

)

 

 

(1,387

)

 

 

(19

)

 

 

Adjustments to equity in earnings of
   unconsolidated joint ventures

 

561

 

 

 

608

 

 

 

-

 

 

 

-

 

 

 

(47

)

 

 

-

 

 

 

-

 

 

 

FFO attributable to One Steuart Lane

 

1,387

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,387

 

 

 

-

 

 

 

Core FFO (2)

$

5,217

 

 

$

2,008

 

 

$

2,360

 

 

$

1,175

 

 

$

(307

)

 

$

-

 

 

$

(19

)

 

 

(1)
Represents 1600 Broadway, 60 Wall Street (“out-of-service” for redevelopment), and Oder-Center, Germany.
(2)
See page 56 for our definition of this measure.

- 32 -


 

img172260412_14.jpg 

UNCONSOLIDATED JOINT VENTURES – OPERATING RESULTS

 

(unaudited and in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2023

 

 

 

 

 

 

 

 

 

 

712 Fifth

 

 

Market

 

 

55 Second

 

 

111 Sutter

 

 

One Steuart

 

 

 

 

 

 

 

 

 

 

Total

 

 

Avenue

 

 

Center

 

 

Street

 

 

Street

 

 

Lane

 

 

Other (1)

 

 

Total revenues

$

166,783

 

 

$

48,931

 

 

$

50,184

 

 

$

31,528

 

 

$

13,363

 

 

$

6,703

 

(2)

$

16,074

 

 

Total operating expenses

 

169,826

 

 

 

24,535

 

 

 

29,225

 

 

 

14,143

 

 

 

7,990

 

 

 

86,409

 

(2)(3)

 

7,524

 

 

Net operating income (loss) (4)

 

(3,043

)

 

 

24,396

 

 

 

20,959

 

 

 

17,385

 

 

 

5,373

 

 

 

(79,706

)

 

 

8,550

 

 

Depreciation and amortization

 

(67,727

)

 

 

(11,761

)

 

 

(26,681

)

 

 

(16,148

)

 

 

(8,894

)

 

 

(43

)

 

 

(4,200

)

 

Interest and other income, net

 

3,035

 

 

 

940

 

 

 

1,157

 

 

 

687

 

 

 

32

 

 

 

200

 

 

 

19

 

 

Interest and debt expense

 

(73,485

)

 

 

(10,722

)

 

 

(14,239

)

 

 

(7,426

)

 

 

(11,823

)

 

 

(4,792

)

 

 

(24,483

)

 

Real estate impairment loss

 

(917,044

)

 

 

-

 

 

 

(341,872

)

 

 

(119,279

)

 

 

-

 

 

 

-

 

 

 

(455,893

)

(5)

(Loss) income before income taxes

 

(1,058,264

)

 

 

2,853

 

 

 

(360,676

)

 

 

(124,781

)

 

 

(15,312

)

 

 

(84,341

)

 

 

(476,007

)

 

Income tax expense

 

(32

)

 

 

-

 

 

 

(3

)

 

 

(20

)

 

 

(3

)

 

 

(2

)

 

 

(4

)

 

Net (loss) income

$

(1,058,296

)

 

$

2,853

 

 

$

(360,679

)

 

$

(124,801

)

 

$

(15,315

)

 

$

(84,343

)

 

$

(476,011

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PGRE's share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ownership

Total

 

 

50.0%

 

 

67.0%

 

 

44.1%

 

 

49.0%

 

 

35.0%

 

 

Various

 

 

 

Net (loss) income

$

(274,421

)

 

$

1,427

 

 

$

(161,514

)

(6)

$

(55,009

)

 

$

(7,505

)

 

$

(28,673

)

 

$

(23,147

)

 

 

Step-up basis adjustment

 

(2,743

)

 

 

-

 

 

 

-

 

 

 

(9

)

 

 

-

 

 

 

(54

)

 

 

(2,680

)

 

 

Adjustments to equity in earnings of
   unconsolidated joint ventures

 

6,866

 

 

 

(1,427

)

 

 

-

 

 

 

-

 

 

 

7,505

 

 

 

-

 

 

 

788

 

 

 

PGRE's share of net loss

 

(270,298

)

 

 

-

 

 

 

(161,514

)

 

 

(55,018

)

 

 

-

 

 

 

(28,727

)

 

 

(25,039

)

 

 

Real estate depreciation and amortization

 

35,766

 

 

 

5,881

 

 

 

17,876

 

 

 

7,129

 

 

 

4,359

 

 

 

15

 

 

 

506

 

 

 

Real estate impairment loss

 

226,230

 

 

 

-

 

 

 

148,906

 

(6)

 

52,590

 

 

 

-

 

 

 

-

 

 

 

24,734

 

(5)

 

FFO (4)

 

(8,302

)

 

 

5,881

 

 

 

5,268

 

 

 

4,701

 

 

 

4,359

 

 

 

(28,712

)

 

 

201

 

 

 

RDF's share of an impairment loss related to residential
   condominium units at One Steuart Lane

 

23,942

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

23,942

 

 

 

-

 

 

 

Adjustments to equity in earnings of
   unconsolidated joint ventures

 

(6,866

)

 

 

1,427

 

 

 

-

 

 

 

-

 

 

 

(7,505

)

 

 

-

 

 

 

(788

)

 

 

FFO attributable to One Steuart Lane

 

4,770

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

4,770

 

 

 

-

 

 

 

Other non-core items

 

1,018

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,018

 

 

 

Core FFO (4)

$

14,562

 

 

$

7,308

 

 

$

5,268

 

 

$

4,701

 

 

$

(3,146

)

 

$

-

 

 

$

431

 

 

 

(1)
Represents 1600 Broadway, 60 Wall Street (“out-of-service” for redevelopment), and Oder-Center, Germany.
(2)
Includes proceeds and cost of sales from the sale of residential condominium units at One Steuart Lane.
(3)
Includes a $68,407 non-cash impairment loss related to condominium units, of which RDF’s share was $23,942.
(4)
See page 56 for our definition of this measure.
(5)
Represents a non-cash real estate impairment loss related to 60 Wall Street.
(6)
The joint venture that owns Market Center recognized a $341,872 non-cash real estate impairment loss, of which our 67.0% share was $229,054. Given that our share of the real estate impairment loss together with our share of operating and other losses recognized in the three months ended December 31, 2023 brought the basis of our investment in the joint venture below zero, in accordance with GAAP, we were limited to recognizing $148,906 of the real estate impairment loss during the three months ended December 31, 2023.

- 33 -


 

img172260412_14.jpg 

UNCONSOLIDATED JOINT VENTURES – OPERATING RESULTS

 

(unaudited and in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2022

 

 

 

 

 

 

 

 

 

 

712 Fifth

 

 

Market

 

 

55 Second

 

 

111 Sutter

 

 

One Steuart

 

 

 

 

 

 

 

 

 

 

Total

 

 

Avenue

 

 

Center

 

 

Street

 

 

Street

 

 

Lane

 

 

Other (1)

 

 

Total revenues

$

259,881

 

 

$

44,813

 

 

$

57,858

 

 

$

31,182

 

 

$

15,192

 

 

$

61,707

 

(2)

$

49,129

 

 

Total operating expenses

 

152,313

 

 

 

21,617

 

 

 

28,100

 

 

 

13,621

 

 

 

7,164

 

 

 

63,421

 

(2)

 

18,390

 

 

Net operating income (3)

 

107,568

 

 

 

23,196

 

 

 

29,758

 

 

 

17,561

 

 

 

8,028

 

 

 

(1,714

)

 

 

30,739

 

 

Depreciation and amortization

 

(85,949

)

 

 

(10,900

)

 

 

(31,875

)

 

 

(16,817

)

 

 

(7,687

)

 

 

(74

)

 

 

(18,596

)

 

Interest and other income (loss), net

 

991

 

 

 

257

 

 

 

365

 

 

 

91

 

 

 

(1

)

 

 

(9

)

 

 

288

 

 

Interest and debt expense

 

(62,173

)

 

 

(10,749

)

 

 

(13,759

)

 

 

(7,426

)

 

 

(7,589

)

 

 

(11,316

)

 

 

(11,334

)

 

Real estate impairment loss

 

(64,663

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(64,663

)

 

 

-

 

 

 

-

 

 

(Loss) income before income taxes

 

(104,226

)

 

 

1,804

 

 

 

(15,511

)

 

 

(6,591

)

 

 

(71,912

)

 

 

(13,113

)

 

 

1,097

 

 

Income tax expense

 

(60

)

 

 

-

 

 

 

(3

)

 

 

(36

)

 

 

(4

)

 

 

(2

)

 

 

(15

)

 

Net (loss) income

$

(104,286

)

 

$

1,804

 

 

$

(15,514

)

 

$

(6,627

)

 

$

(71,916

)

 

$

(13,115

)

 

$

1,082

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PGRE's share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ownership

Total

 

 

50.0%

 

 

67.0%

 

 

44.1%

 

 

49.0%

 

 

35.0%

 

 

Various

 

 

 

Net (loss) income

$

(52,123

)

 

$

902

 

 

$

(10,405

)

 

$

(2,932

)

 

$

(35,237

)

 

$

(4,590

)

 

$

139

 

 

 

Step-up basis adjustment

 

(273

)

 

 

-

 

 

 

-

 

 

 

(11

)

 

 

-

 

 

 

(106

)

 

 

(156

)

 

 

Adjustments to equity in earnings of
   unconsolidated joint ventures

 

(855

)

 

 

(902

)

 

 

-

 

 

 

-

 

 

 

47

 

 

 

-

 

 

 

-

 

 

 

PGRE's share of net loss

 

(53,251

)

 

 

-

 

 

 

(10,405

)

 

 

(2,943

)

 

 

(35,190

)

 

 

(4,696

)

 

 

(17

)

 

 

Real estate depreciation and amortization

 

39,272

 

 

 

5,450

 

 

 

21,356

 

 

 

7,426

 

 

 

3,767

 

 

 

26

 

 

 

1,247

 

 

 

Real estate impairment loss

 

31,685

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

31,685

 

 

 

-

 

 

 

-

 

 

 

FFO (3)

 

17,706

 

 

 

5,450

 

 

 

10,951

 

 

 

4,483

 

 

 

262

 

 

 

(4,670

)

 

 

1,230

 

 

 

Adjustments to equity in earnings of
   unconsolidated joint ventures

 

855

 

 

 

902

 

 

 

-

 

 

 

-

 

 

 

(47

)

 

 

-

 

 

 

-

 

 

 

FFO attributable to One Steuart Lane

 

4,670

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

4,670

 

 

 

-

 

 

 

Core FFO (3)

$

23,231

 

 

$

6,352

 

 

$

10,951

 

 

$

4,483

 

 

$

215

 

 

$

-

 

 

$

1,230

 

 

 

(1)
Represents 1600 Broadway, 60 Wall Street (“out-of-service” for redevelopment), and Oder-Center, Germany.
(2)
Includes proceeds and cost of sales from the sale of residential condominium units at One Steuart Lane.
(3)
See page 56 for our definition of this measure.

- 34 -


 

img172260412_14.jpg 

REAL ESTATE RELATED FUNDS – BALANCE SHEETS

 

 

 

 

 

 

 

As of December 31, 2023

 

 

As of December 31, 2023

 

 

 

 

 

 

 

Consolidated Funds

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

Residential

 

 

Total

 

 

 

 

 

 

 

Consolidated Funds

 

 

Fund X

 

 

Development Fund

 

 

Unconsolidated Funds (1)

 

 

 

PGRE Ownership

 

 

 

13.0%

 

 

7.4%

 

 

Various

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

29,715

 

 

$

9,353

 

 

$

20,362

 

 

$

14,274

 

 

 

 

Accounts and other receivables

 

134

 

 

 

-

 

 

 

134

 

 

 

-

 

 

 

 

Real estate related fund investments (2)

 

775

 

 

 

775

 

 

 

-

 

 

 

335,353

 

 

 

 

Investments in unconsolidated joint ventures

 

89,949

 

 

 

-

 

 

 

89,949

 

 (3)

 

-

 

 

 

 

Other assets

 

9

 

 

 

9

 

 

 

-

 

 

 

459

 

 

 

Total Assets

$

120,582

 

 

$

10,137

 

 

$

110,445

 

 

$

350,086

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

$

90

 

 

$

55

 

 

$

35

 

 

$

88

 

 

 

 

Other liabilities

 

1,019

 

 

 

1,014

 

 

 

5

 

 

 

1

 

 

 

Total Liabilities

 

1,109

 

 

 

1,069

 

 

 

40

 

 

 

89

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Paramount Group, Inc. equity

 

8,884

 

 

 

1,181

 

 

 

7,703

 

 

 

4,549

 

 

 

 

Joint Venture Partners' equity

 

110,589

 

 

 

7,887

 

 

 

102,702

 

 

 

345,448

 

 

 

Total Equity

 

119,473

 

 

 

9,068

 

 

 

110,405

 

 

 

349,997

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Equity

$

120,582

 

 

$

10,137

 

 

$

110,445

 

 

$

350,086

 

 

 

 

(1)
Represents Paramount Group Real Estate Fund VII, LP (“Fund VII”), Paramount Group Real Estate Fund VII-H, LP (“Fund VII-H”) and Paramount Group Real Estate Fund VIII, LP (“Fund VIII”).
(2)
Primarily represents investments in mezzanine loans.
(3)
Represents Residential Development Fund’s 35.0% ownership interest in One Steuart Lane.

 

 

- 35 -


 

img172260412_14.jpg 

REAL ESTATE RELATED FUNDS – BALANCE SHEETS

 

(unaudited and in thousands)

 

 

 

 

 

 

As of December 31, 2022

 

 

As of December 31, 2022

 

 

 

 

 

 

Consolidated Funds

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

Residential

 

 

Total

 

 

 

 

 

 

Consolidated Funds

 

 

Fund X

 

 

Development Fund

 

 

Unconsolidated Funds (1)

 

 

PGRE Ownership

 

 

 

13.0%

 

 

7.4%

 

 

Various

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

3,551

 

 

$

199

 

 

$

3,352

 

 

$

29,076

 

 

 

Accounts and other receivables

 

3,650

 

 

 

-

 

 

 

3,650

 

 

 

-

 

 

 

Real estate related fund investments (2)

 

105,369

 

 

 

105,369

 

 

 

-

 

 

 

232,295

 

 

 

Investments in unconsolidated joint ventures

 

77,961

 

 

 

-

 

 

 

77,961

 

 (3)

 

-

 

 

 

Other assets

 

3,632

 

 

 

201

 

 

 

3,431

 

 

 

342

 

 

Total Assets

$

194,163

 

 

$

105,769

 

 

$

88,394

 

 

$

261,713

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

$

85

 

 

$

34

 

 

$

51

 

 

$

-

 

 

 

Other liabilities

 

248

 

 

 

14

 

 

 

234

 

 

 

91

 

 

Total Liabilities

 

333

 

 

 

48

 

 

 

285

 

 

 

91

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

Paramount Group, Inc. equity

 

20,455

 

 

 

13,766

 

 

 

6,689

 

 

 

3,411

 

 

 

Joint Venture Partners' equity

 

173,375

 

 

 

91,955

 

 

 

81,420

 

 

 

258,211

 

 

Total Equity

 

193,830

 

 

 

105,721

 

 

 

88,109

 

 

 

261,622

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Equity

$

194,163

 

 

$

105,769

 

 

$

88,394

 

 

$

261,713

 

 

 

(1)
Represents Fund VII, Fund VII-H and Fund VIII.
(2)
Primarily represents investments in mezzanine loans.
(3)
Represents Residential Development Fund’s 35.0% ownership interest in One Steuart Lane.

- 36 -


 

img172260412_14.jpg 

REAL ESTATE RELATED FUNDS – OPERATING RESULTS

 

(unaudited and in thousands)

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

Three Months Ended December 31, 2023

 

 

December 31, 2023

 

 

 

 

 

 

Consolidated Funds

 

 

 

 

 

 

 

Total

 

 

 

 

 

Residential

 

 

Total

 

 

 

 

 

 

Consolidated Funds

 

 

Fund X

 

 

Development Fund

 

 

Unconsolidated Funds (1)

 

 

Net investment income

$

1,606

 

 

$

1,606

 

 

$

-

 

 

$

3,161

 

 

Net realized losses

 

(45,670

)

 

 

(45,670

)

 

 

-

 

 

 

-

 

 

Net unrealized (losses) gains

 

(15,277

)

 

 

(15,277

)

 

 

-

 

 

 

334

 

 

(Loss) income from real estate related fund investments

 

(59,341

)

 

 

(59,341

)

 

 

-

 

 

 

3,495

 

 

Loss from unconsolidated joint ventures

 

(916

)

 

 

-

 

 

 

(916

)

 

 

-

 

 

Interest and other income, net

 

207

 

 

 

-

 

 

 

207

 

 

 

-

 

 

Net (loss) income

$

(60,050

)

 

$

(59,341

)

 

$

(709

)

 

$

3,495

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PGRE's share

 

 

 

 

 

 

 

 

 

 

 

 

Ownership

Total

 

 

13.0%

 

 

7.4%

 

 

Total

 

 

 

Net (loss) income

$

(7,781

)

 

$

(7,727

)

 

$

(54

)

 

$

45

 

 

 

Management fee income

 

114

 

 

 

114

 

 

 

-

 

 

 

-

 

 

 

PGRE's share of net (loss) income

 

(7,667

)

 

 

(7,613

)

 

 

(54

)

 

 

45

 

 

 

Real estate depreciation and amortization

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

FFO (2)

 

(7,667

)

 

 

(7,613

)

 

 

(54

)

 

 

45

 

 

 

FFO attributable to One Steuart Lane

 

68

 

 

 

-

 

 

 

68

 

 

 

-

 

 

 

Realized and unrealized gains and losses from real estate
    related fund investments

 

7,935

 

 

 

7,935

 

 

 

-

 

 

 

(4

)

 

 

Core FFO (2)

$

336

 

 

$

322

 

 

$

14

 

 

$

41

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncontrolling interests' share

 

 

 

 

 

 

 

 

 

 

 

 

Ownership

Total

 

 

87.0%

 

 

92.6%

 

 

 

 

 

 

Net (loss) income

$

(52,269

)

 

$

(51,614

)

 

$

(655

)

 

 

 

 

 

Management fee expense

 

(114

)

 

 

(114

)

 

 

-

 

 

 

 

 

 

Net (loss) income attributable to joint venture partners

 

(52,383

)

 

 

(51,728

)

 

 

(655

)

 

 

 

 

 

Real estate depreciation and amortization

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

FFO (2)

 

(52,383

)

 

 

(51,728

)

 

 

(655

)

 

 

 

 

 

FFO attributable to One Steuart Lane

 

848

 

 

 

-

 

 

 

848

 

 

 

 

 

 

Realized and unrealized gains and losses from real estate
    related fund investments

 

53,012

 

 

 

53,012

 

 

 

-

 

 

 

 

 

 

Core FFO (2)

$

1,477

 

 

$

1,284

 

 

$

193

 

 

 

 

 

 

(1)
Represents Fund VII, Fund VII-H and Fund VIII.
(2)
See page 56 for our definition of this measure.

 

- 37 -


 

img172260412_14.jpg 

REAL ESTATE RELATED FUNDS – OPERATING RESULTS

 

(unaudited and in thousands)

 

 

 

 

 

 

Three Months Ended December 31, 2022

 

 

Three Months Ended December 31, 2022

 

 

 

 

 

 

Consolidated Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

Residential

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Fund

 

 

Fund X (1)

 

 

Development Fund

 

 

Unconsolidated Funds

 

 

Fund X (1)

 

 

Other (2)

 

 

Net investment income

$

483

 

 

$

483

 

 

$

-

 

 

$

13,812

 

 

$

11,619

 

 

$

2,193

 

 

Net realized gains

 

-

 

 

 

-

 

 

 

-

 

 

 

1,568

 

 

 

-

 

 

 

1,568

 

 

Net unrealized losses

 

-

 

 

 

-

 

 

 

-

 

 

 

(40,918

)

 

 

(33,779

)

 

 

(7,139

)

 

Income (loss) from real estate related fund investments

 

483

 

 

 

483

 

 

 

-

 

 

 

(25,538

)

 

 

(22,160

)

 

 

(3,378

)

 

Loss from unconsolidated joint ventures

 

(1,393

)

 

 

-

 

 

 

(1,393

)

 

 

-

 

 

 

-

 

 

 

-

 

 

Interest and other income, net

 

84

 

 

 

-

 

 

 

84

 

 

 

-

 

 

 

-

 

 

 

-

 

 

Net (loss) income

$

(826

)

 

$

483

 

 

$

(1,309

)

 

$

(25,538

)

 

$

(22,160

)

 

$

(3,378

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PGRE's share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ownership

Total

 

 

13.0%

 

 

7.4%

 

 

Total

 

 

8.2%

 

 

Various

 

 

 

Net (loss) income

$

(161

)

 

$

63

 

 

$

(224

)

 

$

(1,864

)

 

$

(1,826

)

 

$

(38

)

 

 

Management fee income

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

PGRE's share of net (loss) income

 

(161

)

 

 

63

 

 

 

(224

)

 

 

(1,864

)

 

 

(1,826

)

 

 

(38

)

 

 

Real estate depreciation and amortization

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

FFO (3)

 

(161

)

 

 

63

 

 

 

(224

)

 

 

(1,864

)

 

 

(1,826

)

 

 

(38

)

 

 

FFO attributable to One Steuart Lane

 

103

 

 

 

-

 

 

 

103

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

Realized and unrealized gains and losses from
    real estate related fund investments

 

-

 

 

 

-

 

 

 

-

 

 

 

2,851

 

 

 

2,785

 

 

 

66

 

 

 

Core FFO (3)

$

(58

)

 

$

63

 

 

$

(121

)

 

$

987

 

 

$

959

 

 

$

28

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncontrolling interests' share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ownership

Total

 

 

87.0%

 

 

92.6%

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

$

(665

)

 

$

420

 

 

$

(1,085

)

 

 

 

 

 

 

 

 

 

 

 

Management fee expense

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income attributable to joint venture partners

 

(665

)

 

 

420

 

 

 

(1,085

)

 

 

 

 

 

 

 

 

 

 

 

Real estate depreciation and amortization

 

6

 

 

 

-

 

 

 

6

 

 

 

 

 

 

 

 

 

 

 

 

FFO (3)

 

(659

)

 

 

420

 

 

 

(1,079

)

 

 

 

 

 

 

 

 

 

 

 

FFO attributable to One Steuart Lane

 

1,284

 

 

 

-

 

 

 

1,284

 

 

 

 

 

 

 

 

 

 

 

 

Realized and unrealized gains and losses from
    real estate related fund investments

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

Core FFO (3)

$

625

 

 

$

420

 

 

$

205

 

 

 

 

 

 

 

 

 

 

 

 

(1)
Prior to December 12, 2022, Fund X was accounted for under the equity method of accounting. Subsequent to December 12, 2022, we increased our ownership in Fund X to 13.0% and began consolidating Fund X into our consolidated financial statements.
(2)
Represents Fund VII, Fund VII-H and Fund VIII.
(3)
See page 56 for our definition of this measure.

 

- 38 -


 

img172260412_14.jpg 

REAL ESTATE RELATED FUNDS – OPERATING RESULTS

 

(unaudited and in thousands)

 

 

 

 

 

 

 

 

Year Ended

 

 

 

 

 

 

Year Ended December 31, 2023

 

 

December 31, 2023

 

 

 

 

 

 

Consolidated Funds

 

 

 

 

 

 

 

Total

 

 

 

 

 

Residential

 

 

Total

 

 

 

 

 

 

Consolidated Funds

 

 

Fund X

 

 

Development Fund

 

 

Unconsolidated Funds (1)

 

 

Net investment income

$

11,347

 

 

$

11,347

 

 

$

-

 

 

$

10,273

 

 

Net realized losses

 

(46,894

)

 

 

(46,894

)

 

 

-

 

 

 

(7

)

 

Net unrealized losses

 

(60,828

)

 

 

(60,828

)

 

 

-

 

 

 

(73,924

)

 

Loss from real estate related fund investments

 

(96,375

)

 

 

(96,375

)

 

 

-

 

 

 

(63,658

)

 

Loss from unconsolidated joint ventures

 

(28,727

)

 

 

-

 

 

 

(28,727

)

 (2)

 

-

 

 

Interest and other income, net

 

1,022

 

 

 

-

 

 

 

1,022

 

 

 

-

 

 

Net loss

$

(124,080

)

 

$

(96,375

)

 

$

(27,705

)

 

$

(63,658

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PGRE's share

 

 

 

 

 

 

 

 

 

 

 

 

Ownership

Total

 

 

13.0%

 

 

7.4%

 

 

Total

 

 

 

Net loss

$

(15,243

)

 

$

(12,549

)

 

$

(2,694

)

 

$

(822

)

 

 

Management fee income

 

958

 

 

 

958

 

 

 

-

 

 

 

-

 

 

 

PGRE's share of net loss

 

(14,285

)

 

 

(11,591

)

 

 

(2,694

)

 

 

(822

)

 

 

Real estate depreciation and amortization

 

1

 

 

 

-

 

 

 

1

 

 

 

-

 

 

 

FFO (3)

 

(14,284

)

 

 

(11,591

)

 

 

(2,693

)

 

 

(822

)

 

 

Impairment loss related to residential condominium
   units at One Steuart Lane

 

1,772

 

 

 

-

 

 

 

1,772

 

 

 

-

 

 

 

FFO attributable to One Steuart Lane

 

353

 

 

 

-

 

 

 

353

 

 

 

-

 

 

 

Realized and unrealized gains and losses from real estate
    related fund investments

 

14,025

 

 

 

14,025

 

 

 

-

 

 

 

953

 

 

 

Core FFO (3)

$

1,866

 

 

$

2,434

 

 

$

(568

)

 

$

131

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncontrolling interests' share

 

 

 

 

 

 

 

 

 

 

 

 

Ownership

Total

 

 

87.0%

 

 

92.6%

 

 

 

 

 

 

Net loss

$

(108,837

)

 

$

(83,826

)

 

$

(25,011

)

 

 

 

 

 

Management fee expense

 

(958

)

 

 

(958

)

 

 

-

 

 

 

 

 

 

Net loss attributable to joint venture partners

 

(109,795

)

 

 

(84,784

)

 

 

(25,011

)

 

 

 

 

 

Real estate depreciation and amortization

 

14

 

 

 

-

 

 

 

14

 

 

 

 

 

 

FFO (3)

 

(109,781

)

 

 

(84,784

)

 

 

(24,997

)

 

 

 

 

 

Impairment loss related to residential condominium
   units at One Steuart Lane

 

22,170

 

 

 

-

 

 

 

22,170

 

 

 

 

 

 

FFO attributable to One Steuart Lane

 

4,417

 

 

 

-

 

 

 

4,417

 

 

 

 

 

 

Realized and unrealized gains and losses from real estate
    related fund investments

 

93,697

 

 

 

93,697

 

 

 

-

 

 

 

 

 

 

Core FFO (3)

$

10,503

 

 

$

8,913

 

 

$

1,590

 

 

 

 

 

 

(1)
Represents Fund VII, Fund VII-H and Fund VIII.
(2)
Includes $23,942 for RDF’s share of a non-cash impairment loss related to residential condominium units at One Steuart Lane, of which our share was $1,772.
(3)
See page 56 for our definition of this measure.

- 39 -


 

img172260412_14.jpg 

REAL ESTATE RELATED FUNDS – OPERATING RESULTS

 

 

 

 

 

 

Year Ended December 31, 2022

 

 

Year Ended December 31, 2022

 

 

 

 

 

 

Consolidated Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

Residential

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Fund

 

 

Fund X (1)

 

 

Development Fund

 

 

Unconsolidated Funds

 

 

Fund X (1)

 

 

Other (2)

 

 

Net investment income

$

483

 

 

$

483

 

 

$

-

 

 

$

28,486

 

 

$

18,484

 

 

$

10,002

 

 

Net realized losses

 

-

 

 

 

-

 

 

 

-

 

 

 

(701

)

 

 

-

 

 

 

(701

)

 

Net unrealized losses

 

-

 

 

 

-

 

 

 

-

 

 

 

(43,788

)

 

 

(33,397

)

 

 

(10,391

)

 

Income (loss) from real estate related fund investments

 

483

 

 

 

483

 

 

 

-

 

 

 

(16,003

)

 

 

(14,913

)

 

 

(1,090

)

 

Loss from unconsolidated joint ventures

 

(4,696

)

 

 

-

 

 

 

(4,696

)

 

 

-

 

 

 

-

 

 

 

-

 

 

Interest and other income, net

 

409

 

 

 

-

 

 

 

409

 

 

 

-

 

 

 

-

 

 

 

-

 

 

(Loss) income before income taxes

 

(3,804

)

 

 

483

 

 

 

(4,287

)

 

 

(16,003

)

 

 

(14,913

)

 

 

(1,090

)

 

Income tax expense

 

(2

)

 

 

-

 

 

 

(2

)

 

 

-

 

 

 

-

 

 

 

-

 

 

Net (loss) income

$

(3,806

)

 

$

483

 

 

$

(4,289

)

 

$

(16,003

)

 

$

(14,913

)

 

$

(1,090

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PGRE's share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ownership

Total

 

 

13.0%

 

 

7.4%

 

 

Total

 

 

8.2%

 

 

Various

 

 

 

Net (loss) income

$

(464

)

 

$

63

 

 

$

(527

)

 

$

(1,239

)

 

$

(1,229

)

 

$

(10

)

 

 

Management fee income

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

PGRE's share of net (loss) income

 

(464

)

 

 

63

 

 

 

(527

)

 

 

(1,239

)

 

 

(1,229

)

 

 

(10

)

 

 

Real estate depreciation and amortization

 

2

 

 

 

-

 

 

 

2

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

FFO (3)

 

(462

)

 

 

63

 

 

 

(525

)

 

 

(1,239

)

 

 

(1,229

)

 

 

(10

)

 

 

FFO attributable to One Steuart Lane

 

346

 

 

 

-

 

 

 

346

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

Realized and unrealized gains and losses from
    real estate related fund investments

 

-

 

 

 

-

 

 

 

-

 

 

 

2,890

 

 

 

2,753

 

 

 

137

 

 

 

Core FFO (3)

$

(116

)

 

$

63

 

 

$

(179

)

 

$

1,651

 

 

$

1,524

 

 

$

127

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncontrolling interests' share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ownership

Total

 

 

87.0%

 

 

92.6%

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

$

(3,342

)

 

$

420

 

 

$

(3,762

)

 

 

 

 

 

 

 

 

 

 

 

Management fee expense

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income attributable to joint venture partners

 

(3,342

)

 

 

420

 

 

 

(3,762

)

 

 

 

 

 

 

 

 

 

 

 

Real estate depreciation and amortization

 

24

 

 

 

-

 

 

 

24

 

 

 

 

 

 

 

 

 

 

 

 

FFO (3)

 

(3,318

)

 

 

420

 

 

 

(3,738

)

 

 

 

 

 

 

 

 

 

 

 

FFO attributable to One Steuart Lane

 

4,324

 

 

 

-

 

 

 

4,324

 

 

 

 

 

 

 

 

 

 

 

 

Realized and unrealized gains and losses from
    real estate related fund investments

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

Core FFO (3)

$

1,006

 

 

$

420

 

 

$

586

 

 

 

 

 

 

 

 

 

 

 

 

(1)
Prior to December 12, 2022, Fund X was accounted for under the equity method of accounting. Subsequent to December 12, 2022, we increased our ownership in Fund X to 13.0% and began consolidating Fund X into our consolidated financial statements.
(2)
Represents Fund VII, Fund VII-H and Fund VIII.
(3)
See page 54 for our definition of this measure.

- 40 -


 

img172260412_14.jpg 

CAPITAL STRUCTURE

 

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

 

 

 

 

 

 

 

 

 

 

As of December 31, 2023

 

Debt:

 

 

 

Consolidated debt:

 

 

 

 

Notes and mortgages payable (1)

$

3,817,050

 

 

 

Revolving Credit Facility

 

-

 

 

 

 

 

 

 

 

 

 

 

3,817,050

 

 

Less:

 

 

 

 

Noncontrolling interests' share of consolidated debt (2)

 

(782,120

)

 

Add:

 

 

 

 

PGRE's share of unconsolidated joint venture debt (3)

 

628,938

 

 

PGRE's Share of Total Debt (4)

 

3,663,868

 

 

 

 

 

 

 

Shares / Units

 

 

Share Price as of

 

 

 

 

Equity:

Outstanding

 

 

December 31, 2023

 

 

 

 

 

Common stock

 

217,366,089

 

 

$

5.17

 

 

 

1,123,783

 

 

Operating Partnership units

 

19,468,095

 

 

 

5.17

 

 

 

100,650

 

 

Total equity

 

236,834,184

 

 

 

5.17

 

 

 

1,224,433

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Market Capitalization

$

4,888,301

 

 

(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 56 for our definition of this measure.

- 41 -


 

img172260412_15.jpg 

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

 

 

 

4.87

%

 

 

 

 

500,000

 

 

 

2.49

%

 

 

 

 

360,000

 

 

 

8.18

%

 

 

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

 

232,050

 

 

 

4.50

%

 

 

 

 

232,050

 

 

 

4.50

%

 

 

 

 

-

 

 

 

-

 

 

 

Revolving Credit Facility

 

-

 

 

 

-

 

 

 

 

 

-

 

 

 

-

 

 

 

 

 

-

 

 

 

-

 

 

Total consolidated debt

 

3,817,050

 

 

 

3.88

%

 

 

 

 

3,457,050

 

 

 

3.43

%

 

 

 

 

360,000

 

 

 

8.18

%

 

Noncontrolling interests' share

 

(782,120

)

 

 

3.96

%

 

 

 

 

(782,120

)

 

 

3.96

%

 

 

 

 

-

 

 

 

-

 

 

PGRE's share of consolidated debt

$

3,034,930

 

 

 

3.86

%

 

 

 

$

2,674,930

 

 

 

3.27

%

 

 

 

$

360,000

 

 

 

8.18

%

 

 

 

 

Unconsolidated Joint Venture Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

712 Fifth Avenue

$

300,000

 

 

 

3.39

%

 

 

 

$

300,000

 

 

 

3.39

%

 

 

 

$

-

 

 

 

-

 

 

 

Market Center

 

413,942

 

 

 

3.22

%

 

 

 

 

402,000

 

 

 

3.11

%

 

 

 

 

11,942

 

 

 

6.96

%

 

 

55 Second Street

 

187,500

 

 

 

3.88

%

 

 

 

 

187,500

 

 

 

3.88

%

 

 

 

 

-

 

 

 

-

 

 

 

111 Sutter Street

 

163,298

 

 

 

7.50

%

 

 

 

 

-

 

 

 

-

 

 

 

 

 

163,298

 

 

 

7.50

%

 

 

1600 Broadway

 

98,000

 

 

 

3.45

%

 

 

 

 

98,000

 

 

 

3.45

%

 

 

 

 

-

 

 

 

-

 

 

 

60 Wall Street

 

575,000

 

 

 

7.78

%

 

 

 

 

-

 

 

 

-

 

 

 

 

 

575,000

 

 

 

7.78

%

 

 

Oder-Center, Germany

 

11,451

 

 

 

5.57

%

 

 

 

 

-

 

 

 

-

 

 

 

 

 

11,451

 

 

 

5.57

%

 

Total unconsolidated debt

 

1,749,191

 

 

 

5.25

%

 

 

 

 

987,500

 

 

 

3.37

%

 

 

 

 

761,691

 

 

 

7.68

%

 

Joint venture partners' share

 

(1,120,253

)

 

 

5.89

%

 

 

 

 

(476,475

)

 

 

3.43

%

 

 

 

 

(643,778

)

 

 

7.71

%

 

PGRE's share of unconsolidated debt

$

628,938

 

 

 

4.11

%

 

 

 

$

511,025

 

 

 

3.32

%

 

 

 

$

117,913

 

 

 

7.51

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PGRE's share of Total Debt (1)

$

3,663,868

 

 

 

3.90

%

 

 

 

$

3,185,955

 

 

 

3.28

%

 

 

 

$

477,913

 

 

 

8.01

%

 

 

 

Revolving Credit Facility Covenants: (2)

 Required

 

Actual

 

 

 

 Debt Composition (at PGRE's share):

Amount

 

 

%

 

 

 

Total Debt / Total Assets

 Less than 60%

 

46.5

%

 

 

   Fixed rate debt:

 

 

 

 

 

 

 

Secured Debt / Total Assets

 Less than 50%

 

46.5

%

 

 

 

 Consolidated fixed rate debt

$

2,674,930

 

 

 

 

 

 

Fixed Charge Coverage

 Greater than 1.5x

2.75x

 

 

 

 

 Unconsolidated fixed rate debt

 

511,025

 

 

 

 

 

 

Unsecured Debt / Unencumbered Assets

 Less than 60%

 

0.0

%

 

 

 

 PGRE's share of fixed rate debt

 

3,185,955

 

 

 

87.0

%

 

 

Unencumbered Interest Coverage

 Greater than 1.75x

40.79x

 

 

 

   Variable rate debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Consolidated variable rate debt

 

360,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Unconsolidated variable rate debt

 

117,913

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 PGRE's share of variable rate debt

 

477,913

 

 

 

13.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

PGRE's share of Total Debt (4)

$

3,663,868

 

 

 

100.0

%

 

 

 

(1)
See page 56 for our definition of this measure.
(2)
This section presents ratios as of December 31, 2023 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.

- 42 -


 

img172260412_15.jpg 

DEBT MATURITIES

 

 

(unaudited and in thousands)

 

 

Consolidated Debt:

2024

 

 

2025

 

 

2026

 

 

2027

 

 

2028

 

 

Thereafter

 

 

Total

 

 

One Market Plaza

$

975,000

 

 (1)

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

975,000

 

 

31 West 52nd Street

 

-

 

 

 

-

 

 

 

500,000

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

500,000

 

 

1301 Avenue of the Americas

 

-

 

 

 

-

 

 

 

860,000

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

860,000

 

 

300 Mission Street

 

-

 

 

 

-

 

 

 

232,050

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

232,050

 

 

1633 Broadway

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,250,000

 

 

 

1,250,000

 

 

Revolving Credit Facility

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total consolidated debt

 

975,000

 

 

 

-

 

 

 

1,592,050

 

 

 

-

 

 

 

-

 

 

 

1,250,000

 

 

 

3,817,050

 

Noncontrolling interests' share

 

(497,250

)

 

 

-

 

 

 

(159,882

)

 

 

-

 

 

 

-

 

 

 

(124,988

)

 

 

(782,120

)

PGRE's share of consolidated debt

$

477,750

 

 

$

-

 

 

$

1,432,168

 

 

$

-

 

 

$

-

 

 

$

1,125,012

 

 

$

3,034,930

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unconsolidated Joint Venture Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

60 Wall Street

$

575,000

 

 (2)

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

575,000

 

 

111 Sutter Street

 

163,298

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

163,298

 

 

Market Center

 

-

 

 

 

413,942

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

413,942

 

 

55 Second Street

 

-

 

 

 

-

 

 

 

187,500

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

187,500

 

 

712 Fifth Avenue

 

-

 

 

 

-

 

 

 

-

 

 

 

300,000

 

 

 

-

 

 

 

-

 

 

 

300,000

 

 

Oder-Center, Germany

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

11,451

 

 

 

-

 

 

 

11,451

 

 

1600 Broadway

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

98,000

 

 

 

98,000

 

Total unconsolidated debt

 

738,298

 

 

 

413,942

 

 

 

187,500

 

 

 

300,000

 

 

 

11,451

 

 

 

98,000

 

 

 

1,749,191

 

Joint venture partners' share

 

(629,474

)

 

 

(136,601

)

 

 

(104,831

)

 

 

(150,000

)

 

 

(10,363

)

 

 

(88,984

)

 

 

(1,120,253

)

PGRE's share of unconsolidated debt

$

108,824

 

 

$

277,341

 

 

$

82,669

 

 

$

150,000

 

 

$

1,088

 

 

$

9,016

 

 

$

628,938

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PGRE's Share of Total Debt (3)

$

586,574

 

 

$

277,341

 

 

$

1,514,837

 

 

$

150,000

 

 

$

1,088

 

 

$

1,134,028

 

 

$

3,663,868

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average rate

 

4.69

%

 

 

3.22

%

 

 

4.44

%

 

 

3.39

%

 

 

5.57

%

 

 

2.99

%

 

 

3.90

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% of debt maturing

 

16.0

%

 

 

7.6

%

 

 

41.3

%

 

 

4.1

%

 

 

0.0

%

 

 

31.0

%

 

 

100.0

%

 

(1)
On February 1, 2024, we, together with our joint venture partner, modified and extended this loan. In connection with the modification, the loan balance was reduced to $850,000, following a $125,000 paydown by the joint venture, of which our 49.0% share was $61,250. The modified loan bears interest at a fixed rate of 4.08%, matures in February 2027 and has an option to extend for an additional year, subject to certain conditions.
(2)
The joint venture that owns 60 Wall Street defaulted on its loan and is currently in negotiations with the lender to modify the loan.
(3)
See page 56 for our definition of this measure.

- 43 -


 

img172260412_16.jpg 

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

%

 

 

96.2

%

 

 

96.2

%

 

$

179,752

 

 

$

82.48

 

 

 

2,275,229

 

 

 

-

 

 

 

2,275,229

 

 

 Allianz, Morgan Stanley, Warner Music Group, ICBC,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Showtime Networks, New Mountain Capital, MongoDB,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Bleacher Report, Kasowitz, Benson, Torres & Friedman

 

Retail / Theater

 

90.0

%

 

 

97.7

%

 

 

96.6

%

 

 

11,618

 

 

 

66.67

 

 

 

253,609

 

 

 

-

 

 

 

253,609

 

 

 Gershwin Theatre, Thespian Theatre, Equinox, Din Tai Fung

 

 

 

 

 

90.0

%

 

 

96.4

%

 

 

96.3

%

 

 

191,370

 

 

 

82.09

 

 

 

2,528,838

 

 

 

-

 

 

 

2,528,838

 

 

 

1301 Avenue of the Americas

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

100.0

%

 

 

81.9

%

 

 

75.4

%

 

 

108,108

 

 

 

85.48

 

 

 

1,697,615

 

 

 

-

 

 

 

1,697,615

 

 

 Credit Agricole, Norton Rose Fulbright, CohnReznick,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Swiss Re, Oaktree Capital, ArentFox Schiff,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 O'Melveny & Myers

 

Retail / Amenity Center

 

100.0

%

 

 

89.8

%

 

 

89.8

%

 

 

2,544

 

 

 

182.30

 

 

 

50,722

 

 

 

-

 

 

 

50,722

 

 

 Ocean Prime, Starbucks

 

 

 

 

 

100.0

%

 

 

82.1

%

 

 

75.8

%

 

 

110,652

 

 

 

86.44

 

 

 

1,748,337

 

 

 

-

 

 

 

1,748,337

 

 

 

1325 Avenue of the Americas

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

100.0

%

 

 

95.9

%

 

 

92.9

%

 

 

49,853

 

 

 

67.98

 

 

 

809,383

 

 

 

-

 

 

 

809,383

 

 

 McGraw Hill, Olshan Frome Wolosky, Hilton, Evercore,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Major League Baseball Players Association

 

Retail

 

100.0

%

 

 

96.7

%

 

 

96.7

%

 

 

1,483

 

 

 

95.79

 

 

 

15,498

 

 

 

-

 

 

 

15,498

 

 

 La Grande Boucherie

 

 

 

 

 

100.0

%

 

 

95.9

%

 

 

92.9

%

 

 

51,336

 

 

 

68.41

 

 

 

824,881

 

 

 

-

 

 

 

824,881

 

 

 

31 West 52nd Street

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

100.0

%

 

 

96.4

%

 

 

92.8

%

 

 

64,621

 

 

 

93.89

 

 

 

742,139

 

 

 

-

 

 

 

742,139

 

 

 Clifford Chance, Pillsbury Winthrop Shaw Pittman,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Centerview Partners, Bracewell, Providence Equity Partners,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Wilson Sonsini

 

Retail

 

100.0

%

 

 

87.1

%

 

 

87.1

%

 

 

4,913

 

 

 

124.73

 

 

 

25,913

 

 

 

-

 

 

 

25,913

 

 

 Fogo De Chao, MoMA Design Store

 

 

 

 

 

100.0

%

 

 

96.1

%

 

 

92.6

%

 

 

69,534

 

 

 

94.87

 

 

 

768,052

 

 

 

-

 

 

 

768,052

 

 

 

900 Third Avenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

100.0

%

 

 

82.5

%

 

 

81.6

%

 

 

33,030

 

 

 

70.62

 

 

 

575,132

 

 

 

-

 

 

 

575,132

 

 

 Goldman Sachs, Shiseido, Tannenbaum Helpern Syracuse &

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Hirschtritt, Littler Mendelson

 

Retail

 

100.0

%

 

 

81.7

%

 

 

81.7

%

 

 

1,335

 

 

 

97.31

 

 

 

16,144

 

 

 

-

 

 

 

16,144

 

 

 Bank of America

 

 

 

 

 

100.0

%

 

 

82.4

%

 

 

81.6

%

 

 

34,365

 

 

 

71.35

 

 

 

591,276

 

 

 

-

 

 

 

591,276

 

 

 

712 Fifth Avenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

50.0

%

 

 

83.8

%

 

 

80.4

%

 

 

43,902

 

 

 

119.33

 

 

 

457,581

 

 

 

-

 

 

 

457,581

 

 

 CVC Advisors, abrdn, OMI Management, Riverstone Holdings,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Pictet Asset Management

 

Retail

 

50.0

%

 

 

20.9

%

 

 

20.9

%

 

 

8,030

 

 

 

446.18

 

 

 

85,917

 

 

 

-

 

 

 

85,917

 

 

 Harry Winston

 

 

 

 

 

50.0

%

 

 

73.9

%

 

 

71.0

%

 

 

51,932

 

 

 

134.52

 

 

 

543,498

 

 

 

-

 

 

 

543,498

 

 

 

1600 Broadway

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

9.2

%

 

 

100.0

%

 

 

100.0

%

 

 

10,669

 

 

 

316.62

 

 

 

25,693

 

 

 

-

 

 

 

25,693

 

 

 M&M's World

60 Wall Street (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

5.0

%

 

N/A

 

 

N/A

 

 

N/A

 

 

N/A

 

 

 

-

 

 

 

1,625,483

 

 

 

1,625,483

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal / Weighted average

 

89.8

%

 

 

87.2

%

 

$

519,858

 

 

$

86.47

 

 

 

7,030,575

 

 

 

1,625,483

 

 

 

8,656,058

 

 

 

 

PGRE's share

 

 

 

90.2

%

 

 

87.5

%

 

$

465,070

 

 

$

83.94

 

 

 

6,482,638

 

 

 

81,437

 

 

 

6,564,075

 

 

 

 

(1)
See page 56 for our definition of this measure.
(2)
Represents office and retail space only.
(3)
This property has been taken “out-of-service” for redevelopment.

- 44 -


 

img172260412_17.jpg 

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

%

 

 

95.4

%

 

 

95.4

%

 

$

161,586

 

 

$

109.17

 

 

 

1,555,679

 

 

 

-

 

 

 

1,555,679

 

 

 Google, Morgan Lewis & Bockius, Visa,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 The Capital Group, Autodesk, Citigroup,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Duane Morris, Thoma Bravo, PJT Partners

 

Retail

 

49.0

%

 

 

74.5

%

 

 

74.5

%

 

 

4,959

 

 

 

76.03

 

 

 

53,874

 

 

 

-

 

 

 

53,874

 

 

 Starbucks, STK Steak House,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 One Market Restaurant

 

 

 

 

 

49.0

%

 

 

94.7

%

 

 

94.7

%

 

 

166,545

 

 

 

108.34

 

 

 

1,609,553

 

 

 

-

 

 

 

1,609,553

 

 

 

Market Center

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

67.0

%

 

 

55.5

%

 

 

55.5

%

 

 

37,638

 

 

 

91.36

 

 

 

744,403

 

 

 

-

 

 

 

744,403

 

 

 Mindspace, Bank of Communications,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Crowe, Mayer Brown, Raymond James, Waymo

 

Retail

 

67.0

%

 

 

0.8

%

 

 

0.8

%

 

 

146

 

 

 

-

 

 

 

5,954

 

 

 

-

 

 

 

5,954

 

 

 

 

 

 

 

 

67.0

%

 

 

55.1

%

 

 

55.1

%

 

 

37,784

 

 

 

91.36

 

 

 

750,357

 

 

 

-

 

 

 

750,357

 

 

 

300 Mission Street

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

31.1

%

 

 

80.9

%

 

 

80.9

%

 

 

48,036

 

 

 

98.47

 

 

 

605,662

 

 

 

-

 

 

 

605,662

 

 

 Autodesk, Glassdoor, Instacart

 

Retail

 

31.1

%

 

 

88.5

%

 

 

88.5

%

 

 

2,954

 

 

 

66.49

 

 

 

49,172

 

 

 

-

 

 

 

49,172

 

 

 Equinox

 

 

 

 

 

31.1

%

 

 

81.4

%

 

 

81.4

%

 

 

50,990

 

 

 

95.86

 

 

 

654,834

 

 

 

-

 

 

 

654,834

 

 

 

One Front Street

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

100.0

%

 

 

87.1

%

 

 

87.1

%

 

 

49,442

 

 

 

89.90

 

 

 

631,661

 

 

 

-

 

 

 

631,661

 

 

 JPMorgan Chase, Coinbase, JLL, Cigna

 

Retail

 

100.0

%

 

 

97.5

%

 

 

97.5

%

 

 

1,213

 

 

 

92.84

 

 

 

13,137

 

 

 

-

 

 

 

13,137

 

 

 JPMorgan Chase

 

 

 

 

 

100.0

%

 

 

87.3

%

 

 

87.3

%

 

 

50,655

 

 

 

89.96

 

 

 

644,798

 

 

 

-

 

 

 

644,798

 

 

 

55 Second Street

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

44.1

%

 

 

86.4

%

 

 

86.4

%

 

 

27,272

 

 

 

85.46

 

 

 

370,463

 

 

 

-

 

 

 

370,463

 

 

 KPMG, Intercom, Rippling, UKG

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Alston & Bird

 

Retail

 

44.1

%

 

 

100.0

%

 

 

100.0

%

 

 

930

 

 

 

113.53

 

 

 

7,482

 

 

 

-

 

 

 

7,482

 

 

 Sutter West Bay Medical, Bluestone Lane

 

 

 

 

 

44.1

%

 

 

86.7

%

 

 

86.7

%

 

 

28,202

 

 

 

86.10

 

 

 

377,945

 

 

 

-

 

 

 

377,945

 

 

 

111 Sutter Street

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

49.0

%

 

 

53.3

%

 

 

53.3

%

 

 

11,505

 

 

 

88.18

 

 

 

247,921

 

 

 

-

 

 

 

247,921

 

 

 Turo, Natural Resource Defense Council

 

Retail

 

49.0

%

 

 

86.7

%

 

 

86.7

%

 

 

1,669

 

 

 

65.60

 

 

 

29,358

 

 

 

-

 

 

 

29,358

 

 

 24 Hour Fitness

 

 

 

 

 

49.0

%

 

 

56.8

%

 

 

56.8

%

 

 

13,174

 

 

 

84.50

 

 

 

277,279

 

 

 

-

 

 

 

277,279

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal / Weighted average

 

81.6

%

 

 

81.6

%

 

$

347,350

 

 

$

98.37

 

 

 

4,314,766

 

 

 

-

 

 

 

4,314,766

 

 

 

 

PGRE's share

 

 

 

80.8

%

 

 

80.8

%

 

$

192,327

 

 

$

97.10

 

 

 

2,442,412

 

 

 

-

 

 

 

2,442,412

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total / Weighted average

 

 

 

86.7

%

 

 

85.1

%

 

$

867,208

 

 

$

90.93

 

 

 

11,345,341

 

 

 

1,625,483

 

 

 

12,970,824

 

 

 

PGRE's share

 

 

 

87.7

%

 

 

85.7

%

 

$

657,397

 

 

$

87.45

 

 

 

8,925,050

 

 

 

81,437

 

 

 

9,006,487

 

 

 

 

(1)
See page 56 for our definition of this measure.
(2)
Represents office and retail space only.

- 45 -


 

img172260412_18.jpg 

SAME STORE LEASED OCCUPANCY

 

(unaudited)

 

 

 

 

 

 

 

As of December 31, 2023

 

 

As of September 30, 2023

 

 

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

%

 

 

96.4

%

 

 

96.4

%

 

 

99.7

%

 

 

99.7

%

 

 

(3.3

%)

 

   1301 Avenue of the Americas

 

100.0

%

 

 

82.1

%

 

 

82.1

%

 

 

79.8

%

 

 

79.8

%

 

 

2.3

%

 

   1325 Avenue of the Americas

 

100.0

%

 

 

95.9

%

 

 

95.9

%

 

 

93.8

%

 

 

93.8

%

 

 

2.1

%

 

   31 West 52nd Street

 

100.0

%

 

 

96.1

%

 

 

96.1

%

 

 

96.1

%

 

 

96.1

%

 

 

-

 %

 

   900 Third Avenue

 

100.0

%

 

 

82.4

%

 

 

82.4

%

 

 

82.4

%

 

 

82.4

%

 

 

-

 %

 

   712 Fifth Avenue

 

50.0

%

 

 

73.9

%

 

 

73.9

%

 

 

71.2

%

 

 

71.2

%

 

 

2.7

%

 

   1600 Broadway

 

9.2

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

-

 %

 

   60 Wall Street (2)

 

5.0

%

 

N/A

 

 

 

-

 %

 

N/A

 

 

 

-

 %

 

 

-

 %

 

     Weighted average

 

 

 

 

89.8

%

 

 

89.8

%

 

 

90.0

%

 

 

90.0

%

 

 

(0.2

%)

 

     PGRE's share

 

 

 

 

90.2

%

 

 

90.2

%

 

 

90.4

%

 

 

90.4

%

 

 

(0.2

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Francisco:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   One Market Plaza

 

49.0

%

 

 

94.7

%

 

 

94.7

%

 

 

95.8

%

 

 

95.8

%

 

 

(1.1

%)

 

   Market Center

 

67.0

%

 

 

55.1

%

 

 

55.1

%

 

 

57.0

%

 

 

57.0

%

 

 

(1.9

%)

 

   300 Mission Street

 

31.1

%

 

 

81.4

%

 

 

81.4

%

 

 

81.4

%

 

 

81.4

%

 

 

-

 %

 

   One Front Street

 

100.0

%

 

 

87.3

%

 

 

87.3

%

 

 

88.8

%

 

 

88.8

%

 

 

(1.5

%)

 

   55 Second Street

 

44.1

%

 

 

86.7

%

 

 

86.7

%

 

 

86.7

%

 

 

86.7

%

 

 

-

 %

 

   111 Sutter Street

 

49.0

%

 

 

56.8

%

 

 

56.8

%

 

 

56.8

%

 

 

56.8

%

 

 

-

 %

 

     Weighted average

 

 

 

 

81.6

%

 

 

81.6

%

 

 

82.5

%

 

 

82.5

%

 

 

(0.9

%)

 

     PGRE's share

 

 

 

 

80.8

%

 

 

80.8

%

 

 

82.0

%

 

 

82.0

%

 

 

(1.2

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Weighted average

 

 

 

 

86.7

%

 

 

86.7

%

 

 

87.1

%

 

 

87.1

%

 

 

(0.4

%)

 

     PGRE's share

 

 

 

 

87.7

%

 

 

87.7

%

 

 

88.1

%

 

 

88.1

%

 

 

(0.4

%)

 

 

(1)
See page 56 for our definition of this measure.
(2)
The property has been taken “out-of-service” for redevelopment.

 

 

 

 

 

 

 

 

 

- 46 -


 

img172260412_18.jpg 

SAME STORE LEASED OCCUPANCY

 

(unaudited)

 

 

 

 

 

 

 

As of December 31, 2023

 

 

As of December 31, 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

%

 

 

96.4

%

 

 

96.4

%

 

 

99.7

%

 

 

99.7

%

 

 

(3.3

%)

 

   1301 Avenue of the Americas

 

100.0

%

 

 

82.1

%

 

 

82.1

%

 

 

88.1

%

 

 

88.1

%

 

 

(6.0

%)

 

   1325 Avenue of the Americas

 

100.0

%

 

 

95.9

%

 

 

95.9

%

 

 

94.4

%

 

 

94.4

%

 

 

1.5

%

 

   31 West 52nd Street

 

100.0

%

 

 

96.1

%

 

 

96.1

%

 

 

93.0

%

 

 

93.0

%

 

 

3.1

%

 

   900 Third Avenue

 

100.0

%

 

 

82.4

%

 

 

82.4

%

 

 

79.3

%

 

 

79.3

%

 

 

3.1

%

 

   712 Fifth Avenue

 

50.0

%

 

 

73.9

%

 

 

73.9

%

 

 

73.9

%

 

 

73.9

%

 

 

-

 %

 

   1600 Broadway

 

9.2

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

-

 %

 

   60 Wall Street (2)

 

5.0

%

 

N/A

 

 

 

-

 %

 

N/A

 

 

 

-

 %

 

 

-

 %

 

     Weighted average

 

 

 

 

89.8

%

 

 

89.8

%

 

 

91.7

%

 

 

91.7

%

 

 

(1.9

%)

 

     PGRE's share

 

 

 

 

90.2

%

 

 

90.2

%

 

 

92.1

%

 

 

92.1

%

 

 

(1.9

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Francisco:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   One Market Plaza

 

49.0

%

 

 

94.7

%

 

 

94.7

%

 

 

95.8

%

 

 

95.8

%

 

 

(1.1

%)

 

   Market Center

 

67.0

%

 

 

55.1

%

 

 

55.1

%

 

 

79.4

%

 

 

79.4

%

 

 

(24.3

%)

 

   300 Mission Street

 

31.1

%

 

 

81.4

%

 

 

81.4

%

 

 

81.4

%

 

 

81.4

%

 

 

-

 %

 

   One Front Street

 

100.0

%

 

 

87.3

%

 

 

87.3

%

 

 

97.0

%

 

 

97.0

%

 

 

(9.7

%)

 

   55 Second Street

 

44.1

%

 

 

86.7

%

 

 

86.7

%

 

 

86.0

%

 

 

86.0

%

 

 

0.7

%

 

   111 Sutter Street

 

49.0

%

 

 

56.8

%

 

 

56.8

%

 

 

59.4

%

 

 

59.4

%

 

 

(2.6

%)

 

     Weighted average

 

 

 

 

81.6

%

 

 

81.6

%

 

 

87.8

%

 

 

87.8

%

 

 

(6.2

%)

 

     PGRE's share

 

 

 

 

80.8

%

 

 

80.8

%

 

 

88.9

%

 

 

88.9

%

 

 

(8.1

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Weighted average

 

 

 

 

86.7

%

 

 

86.7

%

 

 

90.2

%

 

 

90.2

%

 

 

(3.5

%)

 

     PGRE's share

 

 

 

 

87.7

%

 

 

87.7

%

 

 

91.3

%

 

 

91.3

%

 

 

(3.6

%)

 

 

(1)
See page 56 for our definition of this measure.
(2)
This property has been taken “out-of-service” for redevelopment.

- 47 -


 

img172260412_19.jpg 

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, 2023

Property

 

Expiration

 

Occupied (2)

 

 

Occupied (2)

 

 

Amount

 

 

Foot (2)

 

 

Rent

 

 

JPMorgan Chase

One Front Street

 

Jun-2025

 

 

241,854

 

 

 

241,854

 

 

$

20,883

 

 

$

86.04

 

 

 

3.2

%

 

 

 

 

 

 

Dec-2029

 

 

76,999

 

 

 

76,999

 

 

 

8,015

 

 

 

104.09

 

 

 

1.2

%

 

 

 

 

 

 

Dec-2030

 

 

25,157

 

 

 

25,157

 

 

 

2,389

 

 

 

94.41

 

 

 

0.4

%

 

 

 

 

 

 

 

 

 

344,010

 

 

 

344,010

 

 

 

31,287

 

 

 

90.69

 

 

 

4.8

%

 

Clifford Chance

31 West 52nd Street

 

Jun-2024

 

 

328,543

 

(3)

 

328,543

 

(3)

 

29,977

 

 

 

91.23

 

 

 

4.6

%

 

Allianz Global Investors

1633 Broadway

 

Jan-2031

 

 

320,911

 

 

 

288,823

 

 

 

28,698

 

 

 

99.36

 

 

 

4.4

%

 

Norton Rose Fulbright

1301 Avenue of the Americas

 

Mar-2032

 

 

111,589

 

 

 

111,589

 

 

 

10,206

 

 

 

91.46

 

 

 

1.6

%

 

 

 

 

 

 

Sep-2034

 

 

179,286

 

 

 

179,286

 

 

 

17,764

 

 

 

94.81

 

 

 

2.7

%

 

 

 

 

 

 

 

 

 

290,875

 

 

 

290,875

 

 

 

27,970

 

 

 

93.53

 

 

 

4.3

%

 

Morgan Stanley

1633 Broadway

 

Mar-2032

 

 

260,829

 

 

 

234,749

 

 

 

20,030

 

 

 

85.33

 

 

 

3.0

%

 

Warner Music Group

1633 Broadway

 

Jul-2029

 

 

288,250

 

 

 

259,428

 

 

 

18,254

 

 

 

69.40

 

 

 

2.8

%

 

Showtime Networks

1633 Broadway

 

Jan-2026

 

 

253,196

 

 

 

227,879

 

 

 

17,353

 

 

 

74.54

 

 

 

2.6

%

 

Google

One Market Plaza

 

Apr-2025

 

 

339,833

 

 

 

166,518

 

 

 

16,228

 

 

 

97.03

 

 

 

2.5

%

 

Kasowitz Benson Torres

1633 Broadway

 

May-2024

 

 

50,718

 

 

 

45,647

 

 

 

3,705

 

 

 

81.17

 

 

 

0.6

%

 

 

 

 

Mar-2037

 

 

152,676

 

 

 

137,410

 

 

 

11,154

 

 

 

81.17

 

 

 

1.7

%

 

 

 

 

 

 

 

203,394

 

 

 

183,057

 

 

 

14,859

 

 

 

81.17

 

 

 

2.3

%

 

O'Melveny & Myers

1301 Avenue of the Americas

 

Feb-2040

 

 

160,708

 

 

 

160,708

 

 

 

12,857

 

 

 

80.00

 

 

 

2.0

%

 

 

 

 

 

 

 

 

PGRE's Share of

 

Industry Diversification:

Square Feet

 

 

% of Occupied

 

 

Annualized

 

 

% of

 

As of December 31, 2023

Occupied

 

 

Square Feet

 

 

Rent (1)

 

 

Annualized Rent

 

 

Legal Services

 

 

1,944,310

 

 

 

25.5

%

 

$

171,545

 

 

 

26.1

%

 

Technology and Media

 

 

1,492,350

 

 

 

19.5

%

 

 

124,842

 

 

 

19.0

%

 

Financial Services - Commercial and Investment Banking

 

 

1,259,554

 

 

 

16.5

%

 

 

107,023

 

 

 

16.3

%

 

Financial Services, all others

 

 

1,124,716

 

 

 

14.7

%

 

 

106,733

 

 

 

16.2

%

 

Insurance

 

 

408,864

 

 

 

5.3

%

 

 

39,810

 

 

 

6.1

%

 

Retail

 

 

162,193

 

 

 

2.1

%

 

 

18,179

 

 

 

2.8

%

 

Travel and Leisure

 

 

206,823

 

 

 

2.7

%

 

 

13,959

 

 

 

2.1

%

 

Consumer Products

 

 

121,732

 

 

 

1.6

%

 

 

10,374

 

 

 

1.6

%

 

Other Professional Services

 

 

111,420

 

 

 

1.5

%

 

 

10,137

 

 

 

1.5

%

 

Other

 

 

813,765

 

 

 

10.6

%

 

 

54,795

 

 

 

8.3

%

 

(1)
See page 56 for our definition of this measure.
(2)
Represents office and retail space only.
(3)
Includes 105,756 square feet that has been pre-leased to Wilson Sonsini through March 2041.

- 48 -


 

img172260412_20.jpg 

LEASING ACTIVITY (1)

 

(unaudited)

 

 

 

 

 

 

Total

 

 

New York

 

 

San Francisco

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total square feet leased

 

 

173,770

 

 

 

138,448

 

 

 

35,322

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PGRE's share of total square feet leased:

 

 

142,391

 

 

 

112,815

 

 

 

29,576

 

 

 

Initial rent (2)

 

$

80.17

 

 

$

77.86

 

 

$

88.97

 

 

 

Weighted average lease term (in years)

 

 

10.2

 

 

 

12.4

 

 

 

1.7

 

 

 

Tenant improvements and leasing commissions:

 

 

 

 

 

 

 

 

 

 

 

Per square foot

 

$

125.81

 

 

$

155.67

 

 

$

11.91

 

 

 

Per square foot per annum

 

$

12.38

 

 

$

12.57

 

 

$

7.04

 

 

 

Percentage of initial rent

 

 

15.4

%

 

 

16.1

%

 

 

7.9

%

 

 

Rent concessions:

 

 

 

 

 

 

 

 

 

 

 

Average free rent period (in months)

 

 

12.5

 

 

 

15.4

 

 

 

1.8

 

 

 

Average free rent period per annum (in months)

 

 

1.2

 

 

 

1.2

 

 

 

1.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Second generation space: (2)

 

 

 

 

 

 

 

 

 

 

 

Square feet

 

 

112,898

 

 

 

83,322

 

 

 

29,576

 

 

 

Cash basis:

 

 

 

 

 

 

 

 

 

 

 

Initial rent (2)

 

$

83.74

 

 

$

81.88

 

 

$

88.97

 

 

 

Prior escalated rent (2)

 

$

90.52

 

 

$

92.27

 

 

$

85.59

 

 

 

Percentage (decrease) increase

 

 

(7.5

%)

 

 

(11.3

%)

 

 

3.9

%

 

 

GAAP basis:

 

 

 

 

 

 

 

 

 

 

 

Straight-line rent

 

$

77.64

 

 

$

75.17

 

 

$

84.61

 

 

 

Prior straight-line rent

 

$

79.60

 

 

$

79.46

 

 

$

80.00

 

 

 

Percentage (decrease) increase

 

 

(2.5

%)

 

 

(5.4

%)

 

 

5.8

%

 

 

 

(1)
The leasing statistics, except for square feet leased, represent office space only.
(2)
See page 56 for our definition of this measure.

 

- 49 -


 

img172260412_20.jpg 

LEASING ACTIVITY (1)

 

(unaudited)

 

 

 

 

 

 

Total

 

 

New York

 

 

San Francisco

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total square feet leased

 

739,510

 

 

 

501,978

 

 

 

237,532

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PGRE's share of total square feet leased:

 

 

597,210

 

 

 

465,716

 

 

 

131,494

 

 

 

     Initial rent (2)

 

$

78.84

 

 

$

76.16

 

 

$

88.32

 

 

 

     Weighted average lease term (in years)

 

 

9.6

 

 

 

11.1

 

 

 

4.5

 

 

 

     Tenant improvements and leasing commissions:

 

 

 

 

 

 

 

 

 

 

 

          Per square foot

 

$

112.01

 

 

$

126.93

 

 

$

59.17

 

 

 

          Per square foot per annum

 

$

11.62

 

 

$

11.45

 

 

$

13.19

 

 

 

          Percentage of initial rent

 

 

14.7

%

 

 

15.0

%

 

 

14.9

%

 

 

      Rent concessions:

 

 

 

 

 

 

 

 

 

 

 

          Average free rent period (in months)

 

 

10.2

 

 

 

11.6

 

 

 

5.3

 

 

 

          Average free rent period per annum (in months)

 

 

1.1

 

 

 

1.0

 

 

 

1.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Second generation space: (2)

 

 

 

 

 

 

 

 

 

 

 

         Square feet

 

 

511,789

 

 

 

385,368

 

 

 

126,421

 

 

 

         Cash basis:

 

 

 

 

 

 

 

 

 

 

 

Initial rent (2)

 

$

79.65

 

 

$

76.75

 

 

$

88.50

 

 

 

Prior escalated rent (2)

 

$

81.90

 

 

$

79.87

 

 

$

88.12

 

 

 

Percentage (decrease) increase

 

 

(2.8

%)

 

 

(3.9

%)

 

 

0.4

%

 

 

         GAAP basis:

 

 

 

 

 

 

 

 

 

 

 

Straight-line rent

 

$

76.86

 

 

$

74.15

 

 

$

85.11

 

 

 

Prior straight-line rent

 

$

76.75

 

 

$

73.51

 

 

$

86.60

 

 

 

Percentage increase (decrease)

 

 

0.1

%

 

 

0.9

%

 

 

(1.7

%)

 

 

 

(1)
The leasing statistics, except for square feet leased, represent office space only.
(2)
See page 56 for our definition of this measure.

- 50 -


 

img172260412_21.jpg 

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

 

 

 

8,813

 

 

 

6,132

 

 

$

805

 

 

$

-

 

 

 

0.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1Q 2024

 

 

 

249,942

 

 

 

198,486

 

 

 

16,137

 

 

 

81.30

 

 

 

2.5

%

 

2Q 2024

 

 

 

347,731

 

 

 

326,002

 

 

 

29,309

 

 

 

89.99

 

 

 

4.4

%

 

3Q 2024

 

 

 

141,452

 

 

 

120,593

 

 

 

11,035

 

 

 

91.30

 

 

 

1.6

%

 

4Q 2024

 

 

 

136,117

 

 

 

118,533

 

 

 

8,898

 

 

 

75.08

 

 

 

1.3

%

 

Total 2024

 

 

 

875,242

 

 

 

763,614

 

 

 

65,379

 

 

 

85.62

 

 

 

9.8

%

 

 

2025

 

 

 

1,524,886

 

 

 

1,042,161

 

 

 

93,602

 

 

 

89.80

 

 

 

14.0

%

 

 

2026

 

 

 

1,390,953

 

 

 

957,255

 

 

 

85,438

 

 

 

86.80

 

 

 

12.8

%

 

 

2027

 

 

 

319,521

 

 

 

237,899

 

 

 

21,740

 

 

 

91.06

 

 

 

3.2

%

 

 

2028

 

 

 

342,556

 

 

 

252,794

 

 

 

21,240

 

 

 

84.11

 

 

 

3.2

%

 

 

2029

 

 

 

643,576

 

 

 

551,836

 

 

 

43,129

 

 

 

83.90

 

 

 

6.4

%

 

 

2030

 

 

 

641,275

 

 

 

544,794

 

 

 

49,395

 

 

 

90.79

 

 

 

7.4

%

 

 

2031

 

 

 

601,218

 

 

 

521,520

 

 

 

51,015

 

 

 

94.38

 

 

 

7.6

%

 

 

2032

 

 

 

954,749

 

 

 

649,950

 

 

 

61,085

 

 

 

94.00

 

 

 

9.1

%

 

 

2033

 

 

 

333,984

 

 

 

299,518

 

 

 

26,554

 

 

 

88.66

 

 

 

4.0

%

 

Thereafter

 

 

 

2,198,926

 

 

 

1,995,912

 

 

 

150,372

 

 

 

81.30

 

 

 

22.4

%

 

(1)
See page 56 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.

- 51 -


 

img172260412_22.jpg 

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

 

 

$

517

 

 

$

-

 

 

 

0.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1Q 2024

 

 

 

100,250

 

 

 

91,537

 

 

 

6,594

 

 

 

71.97

 

 

 

1.4

%

 

2Q 2024

 

 

 

280,031

 

 

 

274,960

 

 

 

24,632

 

 

 

89.56

 

 

 

5.2

%

 

3Q 2024

 

 

 

110,549

 

 

 

103,820

 

 

 

9,061

 

 

 

87.07

 

 

 

1.9

%

 

4Q 2024

 

 

 

106,682

 

 

 

101,260

 

 

 

7,280

 

 

 

71.89

 

 

 

1.5

%

 

Total 2024

 

 

 

597,512

 

 

 

571,577

 

 

 

47,567

 

 

 

83.15

 

 

 

10.0

%

 

 

2025

 

 

 

399,070

 

 

 

343,487

 

 

 

30,591

 

 

 

89.04

 

 

 

6.4

%

 

 

2026

 

 

 

682,621

 

 

 

617,728

 

 

 

50,140

 

 

 

77.28

 

 

 

10.5

%

 

 

2027

 

 

 

180,568

 

 

 

160,509

 

 

 

14,046

 

 

 

87.01

 

 

 

2.9

%

 

 

2028

 

 

 

118,584

 

 

 

98,024

 

 

 

7,470

 

 

 

76.04

 

 

 

1.6

%

 

 

2029

 

 

 

550,545

 

 

 

503,245

 

 

 

38,289

 

 

 

82.29

 

 

 

8.0

%

 

 

2030

 

 

 

437,067

 

 

 

426,351

 

 

 

37,005

 

 

 

86.95

 

 

 

7.7

%

 

 

2031

 

 

 

507,403

 

 

 

458,043

 

 

 

45,078

 

 

 

94.46

 

 

 

9.4

%

 

 

2032

 

 

 

492,354

 

 

 

455,927

 

 

 

39,244

 

 

 

86.08

 

 

 

8.2

%

 

 

2033

 

 

 

304,495

 

 

 

285,635

 

 

 

24,934

 

 

 

87.29

 

 

 

5.2

%

 

Thereafter

 

 

 

2,043,864

 

 

 

1,926,041

 

 

 

143,329

 

 

 

80.49

 

 

 

30.0

%

 

(1)
See page 56 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.

 

 

- 52 -


 

img172260412_23.jpg 

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

 

 

 

6,217

 

 

 

3,711

 

 

$

288

 

 

$

-

 

 

 

0.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1Q 2024

 

 

 

149,692

 

 

 

106,949

 

 

 

9,543

 

 

 

89.30

 

 

 

5.1

%

 

2Q 2024

 

 

 

67,700

 

 

 

51,042

 

 

 

4,677

 

 

 

92.37

 

 

 

2.4

%

 

3Q 2024

 

 

 

30,903

 

 

 

16,773

 

 

 

1,974

 

 

 

117.49

 

 

 

1.0

%

 

4Q 2024

 

 

 

29,435

 

 

 

17,273

 

 

 

1,618

 

 

 

93.81

 

 

 

0.8

%

 

Total 2024

 

 

 

277,730

 

 

 

192,037

 

 

 

17,812

 

 

 

92.99

 

 

 

9.3

%

 

 

2025

 

 

 

1,125,816

 

 

 

698,674

 

 

 

63,011

 

 

 

90.17

 

 

 

32.9

%

 

 

2026

 

 

 

708,332

 

 

 

339,527

 

 

 

35,298

 

 

 

103.93

 

 

 

18.4

%

 

 

2027

 

 

 

138,953

 

 

 

77,390

 

 

 

7,694

 

 

 

99.31

 

 

 

4.0

%

 

 

2028

 

 

 

223,972

 

 

 

154,770

 

 

 

13,770

 

 

 

89.24

 

 

 

7.2

%

 

 

2029

 

 

 

93,031

 

 

 

48,591

 

 

 

4,840

 

 

 

99.16

 

 

 

2.5

%

 

 

2030

 

 

 

204,208

 

 

 

118,443

 

 

 

12,390

 

 

 

104.61

 

 

 

6.5

%

 

 

2031

 

 

 

93,815

 

 

 

63,477

 

 

 

5,937

 

 

 

93.84

 

 

 

3.1

%

 

 

2032

 

 

 

462,395

 

 

 

194,023

 

 

 

21,841

 

 

 

112.65

 

 

 

11.4

%

 

 

2033

 

 

 

29,489

 

 

 

13,883

 

 

 

1,620

 

 

 

116.69

 

 

 

0.8

%

 

Thereafter

 

 

 

155,062

 

 

 

69,871

 

 

 

7,043

 

 

 

100.94

 

 

 

3.7

%

 

(1)
See page 56 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.

 

 

- 53 -


 

img172260412_24.jpg 

CASH BASIS CAPITAL EXPENDITURES

 

(unaudited and in thousands)

 

 

 

 

Three Months Ended December 31, 2023

 

 

 

 

Total

 

 

New York

 

 

San Francisco

 

 

Other

 

Capital Expenditures (including our share of unconsolidated joint ventures): (1)

 

 

 

 

 

 

 

 

 

 

 

 

Expenditures to maintain assets

 

$

15,347

 

 

$

12,402

 

 

$

2,896

 

 

$

49

 

Second generation tenant improvements

 

 

7,301

 

 

 

7,155

 

 

 

146

 

 

 

-

 

Second generation leasing commissions

 

 

6,487

 

 

 

4,352

 

 

 

2,135

 

 

 

-

 

Total Capital Expenditures

 

 

29,135

 

 

 

23,909

 

 

 

5,177

 

 

 

49

 

Less amounts attributable to noncontrolling interests in consolidated joint ventures

 

 

(2,528

)

 

 

(172

)

 

 

(2,356

)

 

 

-

 

PGRE's share of Total Capital Expenditures

 

$

26,607

 

 

$

23,737

 

 

$

2,821

 

 

$

49

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redevelopment Expenditures (including our share of unconsolidated joint ventures): (1)

 

 

 

 

 

 

 

 

 

 

 

 

Paramount Club (Amenity Center)

 

$

13,617

 

 

$

13,617

 

 

$

-

 

 

$

-

 

Other

 

 

87

 

 

 

87

 

 

 

-

 

 

 

-

 

Total Redevelopment Expenditures

 

 

13,704

 

 

 

13,704

 

 

 

-

 

 

 

-

 

Less amounts attributable to noncontrolling interests in consolidated joint ventures

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

PGRE's share of Total Redevelopment Expenditures

 

$

13,704

 

 

$

13,704

 

 

$

-

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2022

 

 

 

 

Total

 

 

New York

 

 

San Francisco

 

 

Other

 

Capital Expenditures (including our share of unconsolidated joint ventures): (1)

 

 

 

 

 

 

 

 

 

 

 

 

Expenditures to maintain assets

 

$

18,835

 

 

$

14,394

 

 

$

3,536

 

 

$

905

 

Second generation tenant improvements

 

 

36,745

 

 

 

22,504

 

 

 

14,241

 

 

 

-

 

Second generation leasing commissions

 

 

3,468

 

 

 

2,226

 

 

 

1,242

 

 

 

-

 

Total Capital Expenditures

 

 

59,048

 

 

 

39,124

 

 

 

19,019

 

 

 

905

 

Less amounts attributable to noncontrolling interests in consolidated joint ventures

 

 

(8,703

)

 

 

(447

)

 

 

(8,256

)

 

 

-

 

PGRE's share of Total Capital Expenditures

 

$

50,345

 

 

$

38,677

 

 

$

10,763

 

 

$

905

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redevelopment Expenditures (including our share of unconsolidated joint ventures): (1)

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

$

2,550

 

 

$

2,550

 

 

$

-

 

 

$

-

 

Total Redevelopment Expenditures

 

 

2,550

 

 

 

2,550

 

 

 

-

 

 

 

-

 

Less amounts attributable to noncontrolling interests in consolidated joint ventures

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

PGRE's share of Total Redevelopment Expenditures

 

$

2,550

 

 

$

2,550

 

 

$

-

 

 

$

-

 

 

(1)
See page 56 for our definition of this measure.

 

 

- 54 -


 

img172260412_24.jpg 

CASH BASIS CAPITAL EXPENDITURES

 

(unaudited and in thousands)

 

 

 

 

Year Ended December 31, 2023

 

 

 

 

Total

 

 

New York

 

 

San Francisco

 

 

Other

 

Capital Expenditures (including our share of unconsolidated joint ventures): (1)

 

 

 

 

 

 

 

 

 

 

 

 

Expenditures to maintain assets

 

$

49,060

 

 

$

37,718

 

 

$

10,917

 

 

$

425

 

Second generation tenant improvements

 

 

32,709

 

 

 

19,781

 

 

 

12,928

 

 

 

-

 

Second generation leasing commissions

 

 

13,616

 

 

 

8,795

 

 

 

4,821

 

 

 

-

 

Total Capital Expenditures

 

 

95,385

 

 

 

66,294

 

 

 

28,666

 

 

 

425

 

Less amounts attributable to noncontrolling interests in consolidated joint ventures

 

 

(13,339

)

 

 

(1,130

)

 

 

(12,209

)

 

 

-

 

PGRE's share of Total Capital Expenditures

 

$

82,046

 

 

$

65,164

 

 

$

16,457

 

 

$

425

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redevelopment Expenditures (including our share of unconsolidated joint ventures): (1)

 

 

 

 

 

 

 

 

 

 

 

 

Paramount Club (Amenity Center)

 

$

27,866

 

 

$

27,866

 

 

$

-

 

 

$

-

 

Other

 

 

983

 

 

 

983

 

 

 

-

 

 

 

-

 

Total Redevelopment Expenditures

 

 

28,849

 

 

 

28,849

 

 

 

-

 

 

 

-

 

Less amounts attributable to noncontrolling interests in consolidated joint ventures

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

PGRE's share of Total Redevelopment Expenditures

 

$

28,849

 

 

$

28,849

 

 

$

-

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2022

 

 

 

 

Total

 

 

New York

 

 

San Francisco

 

 

Other

 

Capital Expenditures (including our share of unconsolidated joint ventures): (1)

 

 

 

 

 

 

 

 

 

 

 

 

Expenditures to maintain assets

 

$

54,962

 

 

$

41,577

 

 

$

12,360

 

 

$

1,025

 

Second generation tenant improvements

 

 

66,867

 

 

 

39,267

 

 

 

27,600

 

 

 

-

 

Second generation leasing commissions

 

 

16,539

 

 

 

12,908

 

 

 

3,631

 

 

 

-

 

Total Capital Expenditures

 

 

138,368

 

 

 

93,752

 

 

 

43,591

 

 

 

1,025

 

Less amounts attributable to noncontrolling interests in consolidated joint ventures

 

 

(19,560

)

 

 

(2,006

)

 

 

(17,554

)

 

 

-

 

PGRE's share of Total Capital Expenditures

 

$

118,808

 

 

$

91,746

 

 

$

26,037

 

 

$

1,025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redevelopment Expenditures (including our share of unconsolidated joint ventures): (1)

 

 

 

 

 

 

 

 

 

 

 

 

Lobby renovations

 

$

5,453

 

 

$

5,403

 

 

$

50

 

 

$

-

 

Elevator modernizations

 

 

2,052

 

 

 

2,020

 

 

 

32

 

 

 

-

 

Other

 

 

3,990

 

 

 

3,902

 

 

 

88

 

 

 

-

 

Total Redevelopment Expenditures

 

 

11,495

 

 

 

11,325

 

 

 

170

 

 

 

-

 

Less amounts attributable to noncontrolling interests in consolidated joint ventures

 

 

(283

)

 

 

(172

)

 

 

(111

)

 

 

-

 

PGRE's share of Total Redevelopment Expenditures

 

$

11,212

 

 

$

11,153

 

 

$

59

 

 

$

-

 

 

(1)
See page 56 for our definition of this measure.

- 55 -


 

img172260412_25.jpg 

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.

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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 the 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.

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 in the current period (i) prior to its originally scheduled expiration, or (ii) that has been vacant for less than twelve months.

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

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