0001564590-20-019756.txt : 20200429 0001564590-20-019756.hdr.sgml : 20200429 20200429164003 ACCESSION NUMBER: 0001564590-20-019756 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 53 CONFORMED PERIOD OF REPORT: 20200429 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20200429 DATE AS OF CHANGE: 20200429 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Paramount Group, Inc. CENTRAL INDEX KEY: 0001605607 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 320439307 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-36746 FILM NUMBER: 20830981 BUSINESS ADDRESS: STREET 1: 1633 BROADWAY, SUITE 1801 CITY: NEW YORK STATE: NY ZIP: 10019 BUSINESS PHONE: 212-237-3100 MAIL ADDRESS: STREET 1: 1633 BROADWAY, SUITE 1801 CITY: NEW YORK STATE: NY ZIP: 10019 8-K 1 pgre-8k_20200429.htm 8-K pgre-8k_20200429.htm
false 0001605607 0001605607 2020-04-29 2020-04-29

 

  

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

CURRENT REPORT

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

Date of Report (Date of earliest event reported): April 29, 2020

 

 

Paramount Group, Inc.

(Exact Name of Registrant as Specified in Charter)

 

 

 

 

 

 

 

 

 

 

 

Maryland

 

001-36746

 

32-0439307

(State or Other Jurisdiction

of Incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

 

 

 

 

 

 

 

1633 Broadway, Suite 1801

New York, New York

 

10019

(Address of Principal Executive offices)

 

(Zip Code)

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

 

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

 

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

 

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

 

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

 

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

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

 

 

 

 

 

Title of each Class

 

Trading Symbol

 

Name of each exchange on which registered

Common stock of Paramount Group, Inc., $0.01 par value per share

 

PGRE

 

New York Stock Exchange

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

Emerging Growth Company  

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

  

 

 


 

Item 2.02 Results of Operations and Financial Condition.

On April 29, 2020, Paramount Group, Inc. (the “Company”) issued a press release announcing its financial results for the first quarter ended March 31, 2020. A copy of that press release as well as the supplemental information referred to in the press release are available on the Company’s website and are attached hereto as Exhibits 99.1 and 99.2 and incorporated herein by reference. This Item 2.02 and the attached Exhibits 99.1 and 99.2 are being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act.

The Company will host a conference call and audio webcast on Thursday, April 30, 2020 at 10:00 a.m. Eastern Time (ET), during which management will discuss the first quarter results and provide commentary on business performance. A question and answer session with analysts and investors will follow the prepared remarks.

The conference call can be accessed by dialing 877-407-0789 (domestic) or 201-689-8562 (international). An audio replay of the conference call will be available from 1:00 p.m. ET on April 30, 2020 through May 7, 2020 and can be accessed by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the passcode 13701451.

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

 

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits:

 

 

 

 

 

 

Exhibit
Number

 

 

Description

 

 

 

 

 

 

99.1

 

 

Press release dated April 29, 2020 and entitled “Paramount Announces First Quarter 2020 Results”

 

 

 

 

 

 

99.2

 

 

Supplemental information entitled “Paramount Group, Inc. Supplemental Operating and Financial Data for the Quarter Ended March 31, 2020”

 

 

 

 

 

 

104

 

 

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 


 

 

 

SIGNATURES

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

 

 

 

 

PARAMOUNT GROUP, INC.

 

 

 

By:

 

/s/ Wilbur Paes

Name:

 

Wilbur Paes

Title:

 

Executive Vice President, Chief Financial Officer and Treasurer

 

Date: April 29, 2020

 

 

 

 

EX-99.1 2 pgre-ex991_121.htm EX-99.1 pgre-ex991_121.htm

Exhibit 99.1

 

 

Paramount Announces First Quarter 2020 Results

 

 

– Completes $100 million of share repurchases through March –

– Withdraws Guidance for Full Year 2020 –

 

 

NEW YORK – April 29, 2020 – Paramount Group, Inc. (NYSE: PGRE) (“Paramount” or the “Company”) filed its Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 today and reported results for the first quarter ended March 31, 2020.

 

First Quarter Highlights:

 

Results of Operations:

 

 

Reported net income attributable to common stockholders of $3.3 million, or $0.01 per diluted share, for the quarter ended March 31, 2020, compared to $3.7 million, or $0.02 per diluted share, for the quarter ended March 31, 2019.

 

 

Reported Core Funds from Operations (“Core FFO”) attributable to common stockholders of $61.5 million, or $0.27 per diluted share, for the quarter ended March 31, 2020, compared to $57.1 million, or $0.24 per diluted share, for the quarter ended March 31, 2019.

 

 

Reported a 4.3% increase in Same Store Cash Net Operating Income (“NOI”) and a 1.5% increase in Same Store NOI in the quarter ended March 31, 2020, compared to the same period in the prior year.

 

 

Leased 206,784 square feet, of which the Company’s share was 126,068 square feet that was leased at a weighted average initial rent of $91.59 per square foot. Of the square footage leased, 104,308 square feet represented second generation space, for which the Company achieved a positive mark-to-market of 31.3% on a cash basis and 38.2% on a GAAP basis.

 

 

Transactions and Capital Markets Activity:

 

 

Entered into an agreement on March 6, 2020 to sell 1899 Pennsylvania Avenue, a 191,000 square foot office building located in Washington, D.C., for $115.0 million. The transaction, which is subject to customary closing conditions, is expected to close in the fourth quarter of 2020.

 

 

Entered into an agreement on March 27, 2020 to sell a 10.0% interest in 1633 Broadway, a 2.5 million square foot trophy office building located in New York City, for $240.0 million (based on a property valuation of $2.4 billion, or $960 per square foot). The transaction, which is subject to customary closing conditions, is expected to close in the second quarter of 2020.

 

 

Repurchased 10,856,865 common shares at a weighted average price of $9.21 per share, or $100.0 million in the aggregate.

 

 

Declared a first quarter cash dividend of $0.10 per common share on March 13, 2020, which was paid on April 15, 2020.

 


 

      

 

Financial Results

 

Quarter Ended March 31, 2020

 

Net income attributable to common stockholders was $3.3 million, or $0.01 per diluted share, for the quarter ended March 31, 2020, compared to $3.7 million, or $0.02 per diluted share, for the quarter ended March 31, 2019. Net income attributable to common stockholders for the quarters ended March 31, 2020 and 2019 includes $1.4 million and $1.9 million, or $0.00 and $0.01 per diluted share, respectively, of income from discontinued operations.

 

Funds from Operations (“FFO”) attributable to common stockholders was $61.6 million, or $0.27 per diluted share, for the quarter ended March 31, 2020, compared to $55.2 million, or $0.24 per diluted share, for the quarter ended March 31, 2019. FFO attributable to common stockholders for the quarters ended March 31, 2020 and 2019 includes the impact of non-core items, which are listed in the table on page 8. The aggregate of these items, net of amounts attributable to noncontrolling interests, increased FFO attributable to common stockholders for the quarter ended March 31, 2020 by $0.1 million, or $0.00 per diluted share, and decreased FFO attributable to common stockholders for the quarter ended March 31, 2019 by $1.9 million, or $0.00 per diluted share.

 

Core FFO attributable to common stockholders, which excludes the impact of the non-core items listed on page 8, was $61.5 million, or $0.27 per diluted share, for the quarter ended March 31, 2020, compared to $57.1 million, or $0.24 per diluted share, for the quarter ended March 31, 2019.

 

 

Portfolio Operations

 

Quarter Ended March 31, 2020

 

Same Store Cash NOI increased by $3.7 million, or 4.3%, to $90.8 million for the quarter ended March 31, 2020 from $87.1 million for the quarter ended March 31, 2019. Same Store NOI increased by $1.5 million, or 1.5%, to $100.6 million for the quarter ended March 31, 2020 from $99.1 million for the quarter ended March 31, 2019.

 

During the quarter ended March 31, 2020, the Company leased 206,784 square feet, of which the Company’s share was 126,068 square feet that was leased at a weighted average initial rent of $91.59 per square foot. This leasing activity, offset by lease expirations in the quarter, caused leased occupancy to remain at 95.9% leased at March 31, 2020, in-line with leased occupancy reported at December 31, 2019. Same store leased occupancy (properties owned by us during both reporting periods and not classified as discontinued operations), was 96.0% at March 31, 2020, in-line with same store leased occupancy at December 31, 2019. Of the 206,784 square feet leased in the first quarter, 104,308 square feet represented second generation space (space that had been vacant for less than twelve months) for which the Company achieved a positive mark-to-market of 31.3% on a cash basis and 38.2% on a GAAP basis. The weighted average lease term for leases signed during the first quarter was 4.8 years and weighted average tenant improvements and leasing commissions on these leases were $6.99 per square foot per annum, or 7.6% of initial rent.


2


 

      

 

Guidance

 

The Company had previously provided its 2020 guidance on February 12, 2020, prior to the coronavirus (COVID-19) global pandemic, which has materially impacted the U.S. and global economy. Given the economic uncertainty and rapidly-evolving circumstances related to the COVID-19 pandemic, the Company is withdrawing its previously issued 2020 guidance and is not providing an updated outlook at this time. The Company will discuss the first quarter results and provide commentary on its business performance during its first quarter conference call.

 

 

 

Forward-Looking Statements

 

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


3


 

      

 

Non-GAAP Financial Measures

 

FFO is a supplemental measure of our performance. We present FFO in accordance with the definition adopted by the National Association of Real Estate Investment Trusts (“Nareit”). Nareit defines FFO as net income or loss, calculated in accordance with GAAP, adjusted to exclude depreciation and amortization from real estate assets, impairment losses on certain real estate assets and gains or losses from the sale of certain real estate assets or from change in control of certain real estate assets, including our share of such adjustments of unconsolidated joint ventures. FFO is commonly used in the real estate industry to assist investors and analysts in comparing results of real estate companies because it excludes the effect of real estate depreciation and amortization and net gains on sales, which are based on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions. In addition, we present Core FFO as an alternative measure of our operating performance, which adjusts FFO for certain other items that we believe enhance the comparability of our FFO across periods. Core FFO, when applicable, excludes the impact of certain items, including, transaction related costs, realized and unrealized gains or losses on real estate fund investments, unrealized gains or losses on interest rate swaps, severance costs and gains or losses on early extinguishment of debt, in order to reflect the Core FFO of our real estate portfolio and operations. In future periods, we may also exclude other items from Core FFO that we believe may help investors compare our results.

 

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

 

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

 

Same Store NOI is used to measure the operating performance of properties in our New York and San Francisco portfolios that were owned by 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.

 

A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure can be found in this press release and in our Supplemental Information for the quarter ended March 31, 2020, which is available on our website.  


4


 

      

 

Investor Conference Call and Webcast

 

The Company will host a conference call and audio webcast on Thursday, April 30, 2020 at 10:00 a.m. Eastern Time (ET), during which management will discuss the first quarter results and provide commentary on business performance. A question and answer session with analysts and investors will follow the prepared remarks.

 

The conference call can be accessed by dialing 877-407-0789 (domestic) or 201-689-8562 (international). An audio replay of the conference call will be available from 1:00 p.m. ET on April 30, 2020 through May 7, 2020 and can be accessed by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the passcode 13701451.

 

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

 

 

About Paramount Group, Inc.

 

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

 

 

Contact Information:

 

Wilbur Paes

Executive Vice President, Chief Financial Officer

212-237-3122

ir@paramount-group.com

 

 

Robert Simone

Director, Business Development & Investor Relations

212-237-3138

ir@paramount-group.com

 

 

Media:

 

212-492-2285

pr@paramount-group.com


5


 

      

 

Paramount Group, Inc.

Consolidated Balance Sheets

(Unaudited and in thousands)

 

 

Assets:

 

March 31, 2020

 

 

December 31, 2019

 

Real estate, at cost

 

 

 

 

 

 

 

 

Land

 

$

1,966,237

 

 

$

1,966,237

 

Buildings and improvements

 

 

5,948,631

 

 

 

5,923,648

 

 

 

 

7,914,868

 

 

 

7,889,885

 

Accumulated depreciation and amortization

 

 

(832,164

)

 

 

(790,216

)

Real estate, net

 

 

7,082,704

 

 

 

7,099,669

 

Cash and cash equivalents

 

 

377,689

 

 

 

306,215

 

Restricted cash

 

 

20,563

 

 

 

25,272

 

Investments in unconsolidated joint ventures

 

 

429,358

 

 

 

449,180

 

Investments in unconsolidated real estate funds

 

 

13,116

 

 

 

10,317

 

Accounts and other receivables, net

 

 

17,826

 

 

 

19,231

 

Due from affiliates

 

 

-

 

 

 

36,918

 

Deferred rent receivable

 

 

312,249

 

 

 

301,588

 

Deferred charges, net

 

 

124,908

 

 

 

126,367

 

Intangible assets, net

 

 

191,183

 

 

 

203,169

 

Assets related to discontinued operations

 

 

104,028

 

 

 

104,836

 

Other assets

 

 

80,632

 

 

 

51,373

 

Total assets

 

$

8,754,256

 

 

$

8,734,135

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Notes and mortgages payable, net

 

$

3,788,684

 

 

$

3,783,851

 

Revolving credit facility

 

 

200,000

 

 

 

36,918

 

Accounts payable and accrued expenses

 

 

109,563

 

 

 

117,356

 

Dividends and distributions payable

 

 

24,342

 

 

 

25,255

 

Intangible liabilities, net

 

 

69,752

 

 

 

73,789

 

Other liabilities

 

 

54,723

 

 

 

66,004

 

Total liabilities

 

 

4,247,064

 

 

 

4,103,173

 

Equity:

 

 

 

 

 

 

 

 

Paramount Group, Inc. equity

 

 

3,722,261

 

 

 

3,785,730

 

Noncontrolling interests in:

 

 

 

 

 

 

 

 

Consolidated joint ventures

 

 

359,120

 

 

 

360,778

 

Consolidated real estate fund

 

 

80,476

 

 

 

72,396

 

Operating Partnership

 

 

345,335

 

 

 

412,058

 

Total equity

 

 

4,507,192

 

 

 

4,630,962

 

Total liabilities and equity

 

$

8,754,256

 

 

$

8,734,135

 


6


 

      

 

Paramount Group, Inc.

Consolidated Statements of Income

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

 

 

 

 

 

 

 

 

 

For the Three Months Ended March 31,

 

 

 

2020

 

 

2019

 

Revenues:

 

 

 

 

 

 

 

 

 

Rental revenue

 

$

175,425

 

 

$

175,341

 

 

Fee and other income

 

 

8,561

 

 

 

9,048

 

 

 

Total revenues

 

 

183,986

 

 

 

184,389

 

Expenses:

 

 

 

 

 

 

 

 

 

Operating

 

 

67,014

 

 

 

65,461

 

 

Depreciation and amortization

 

 

58,427

 

 

 

60,712

 

 

General and administrative

 

 

12,249

 

 

 

17,443

 

 

Transaction related costs

 

 

203

 

 

 

736

 

 

 

Total expenses

 

 

137,893

 

 

 

144,352

 

Other income (expense):

 

 

 

 

 

 

 

 

 

Loss from unconsolidated joint ventures

 

 

(4,221

)

 

 

(1,027

)

 

Income from unconsolidated real estate funds

 

 

52

 

 

 

46

 

 

Interest and other (loss) income, net

 

 

(996

)

 

 

3,900

 

 

Interest and debt expense

 

 

(36,619

)

 

 

(36,924

)

Income from continuing operations, before income taxes

 

 

4,309

 

 

 

6,032

 

 

Income tax expense

 

 

(604

)

 

 

(1,138

)

Income from continuing operations, net

 

 

3,705

 

 

 

4,894

 

Income from discontinued operations, net

 

 

1,521

 

 

 

2,106

 

Net income

 

 

5,226

 

 

 

7,000

 

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

 

 

 

 

 

 

 

 

 

Consolidated joint ventures

 

 

(1,514

)

 

 

(2,794

)

 

Consolidated real estate fund

 

 

(23

)

 

 

(94

)

 

Operating Partnership

 

 

(341

)

 

 

(403

)

Net income attributable to common stockholders

 

$

3,348

 

 

$

3,709

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income per Common Share - Basic:

 

 

 

 

 

 

 

 

Income from continuing operations, net

 

$

0.01

 

 

$

0.01

 

Income from discontinued operations, net

 

 

0.00

 

 

 

0.01

 

Net income per common share

 

$

0.01

 

 

$

0.02

 

Weighted average common shares outstanding

 

 

227,769,213

 

 

 

233,419,299

 

 

 

 

 

 

 

 

 

 

Income per Common Share - Diluted:

 

 

 

 

 

 

 

 

Income from continuing operations, net

 

$

0.01

 

 

$

0.01

 

Income from discontinued operations, net

 

 

0.00

 

 

 

0.01

 

Net income per common share

 

$

0.01

 

 

$

0.02

 

Weighted average common shares outstanding

 

 

227,805,176

 

 

 

233,458,438

 

 

 

 


7


 

      

 

Paramount Group, Inc.

Reconciliation of Net Income to FFO and Core FFO

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

 

 

 

 

 

 

 

 

 

For the Three Months Ended March 31,

 

 

 

 

 

 

 

 

2020

 

 

2019

 

Reconciliation of Net Income to FFO and Core FFO:

 

 

 

 

 

 

 

 

 

Net income

 

$

5,226

 

 

$

7,000

 

 

Real estate depreciation and amortization (including our share of

 

 

 

 

 

 

 

 

 

 

unconsolidated joint ventures)

 

 

70,940

 

 

 

63,688

 

 

Adjustments related to discontinued operations

 

 

690

 

 

 

2,377

 

 

FFO

 

 

76,856

 

 

 

73,065

 

 

Less FFO attributable to noncontrolling interests in:

 

 

 

 

 

 

 

 

 

 

Consolidated joint ventures

 

 

(8,969

)

 

 

(11,748

)

 

 

Consolidated real estate fund

 

 

(23

)

 

 

(94

)

 

FFO attributable to Paramount Group Operating Partnership

 

 

67,864

 

 

 

61,223

 

 

Less FFO attributable to noncontrolling interests in in Operating Partnership

 

 

(6,278

)

 

 

(5,998

)

 

FFO attributable to common stockholders

 

$

61,586

 

 

$

55,225

 

 

Per diluted share

 

$

0.27

 

 

$

0.24

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO

 

$

76,856

 

 

$

73,065

 

 

Non-core items:

 

 

 

 

 

 

 

 

 

 

Our share of earnings in excess of distributions received from 712 Fifth Avenue

 

 

(388

)

 

 

1,270

 

 

 

Other, net

 

 

303

 

 

 

823

 

 

Core FFO

 

 

76,771

 

 

 

75,158

 

 

Less Core FFO attributable to noncontrolling interests in:

 

 

 

 

 

 

 

 

 

 

Consolidated joint ventures

 

 

(8,969

)

 

 

(11,748

)

 

 

Consolidated real estate fund

 

 

(23

)

 

 

(94

)

 

Core FFO attributable to Paramount Group Operating Partnership

 

 

67,779

 

 

 

63,316

 

 

Less Core FFO attributable to noncontrolling interests in Operating Partnership

 

 

(6,270

)

 

 

(6,203

)

 

Core FFO attributable to common stockholders

 

$

61,509

 

 

$

57,113

 

 

Per diluted share

 

$

0.27

 

 

$

0.24

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

 

227,769,213

 

 

 

233,419,299

 

 

Effect of dilutive securities

 

 

35,963

 

 

 

39,139

 

 

Denominator for FFO and Core FFO per diluted share

 

 

227,805,176

 

 

 

233,458,438

 


8


 

      

 

Paramount Group, Inc.

Reconciliation of Net Income to Same Store NOI and Same Store Cash NOI

(Unaudited and in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended March 31,

 

 

 

 

 

 

 

2020

 

 

2019

 

Reconciliation of Net Income to Same Store NOI

   and Same Store Cash NOI:

 

 

 

 

 

 

 

 

Net income

$

5,226

 

 

$

7,000

 

 

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

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

58,427

 

 

 

60,712

 

 

 

General and administrative

 

12,249

 

 

 

17,443

 

 

 

Interest and debt expense

 

36,619

 

 

 

36,924

 

 

 

Income tax expense

 

604

 

 

 

1,138

 

 

 

NOI from unconsolidated joint ventures

 

13,392

 

 

 

5,411

 

 

 

Fee income

 

(6,330

)

 

 

(5,999

)

 

 

Interest and other loss (income), net

 

996

 

 

 

(3,900

)

 

 

Adjustments related to discontinued operations

 

690

 

 

 

2,377

 

 

 

Other, net

 

4,372

 

 

 

1,717

 

 

NOI

 

126,245

 

 

 

122,823

 

 

Less NOI attributable to noncontrolling interests in:

 

 

 

 

 

 

 

 

 

Consolidated joint ventures

 

(15,691

)

 

 

(17,909

)

 

 

Consolidated real estate fund

 

3

 

 

 

29

 

 

PGRE's share of NOI

 

110,557

 

 

 

104,943

 

 

 

Acquisitions

 

(9,292

)

 

 

-

 

 

 

Dispositions / Discontinued Operations (1)

 

(2,211

)

 

 

(4,483

)

 

 

Lease termination income and other, net

 

1,502

 

 

 

(1,342

)

 

PGRE's share of Same Store NOI

$

100,556

 

 

$

99,118

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOI

$

126,245

 

 

$

122,823

 

 

Less:

 

 

 

 

 

 

 

 

 

Straight-line rent adjustments (including our share

   of unconsolidated joint ventures)

 

(11,804

)

 

 

(11,869

)

 

 

Amortization of above and below-market leases, net

   (including our share of unconsolidated joint ventures)

 

(2,832

)

 

 

(3,240

)

 

 

Adjustments related to discontinued operations

 

119

 

 

 

111

 

 

Cash NOI

 

111,728

 

 

 

107,825

 

 

Less Cash NOI attributable to noncontrolling interests in:

 

 

 

 

 

 

 

 

 

Consolidated joint ventures

 

(13,202

)

 

 

(14,785

)

 

 

Consolidated real estate fund

 

3

 

 

 

29

 

 

PGRE's share of Cash NOI

 

98,529

 

 

 

93,069

 

 

 

Acquisitions

 

(6,806

)

 

 

-

 

 

 

Dispositions / Discontinued Operations (1)

 

(2,330

)

 

 

(4,594

)

 

 

Lease termination income and other, net

 

1,421

 

 

 

(1,409

)

 

PGRE's share of Same Store Cash NOI

$

90,814

 

 

$

87,066

 

 

(1)

Represents NOI and Cash NOI from discontinued operations (1899 Pennsylvania Avenue in 2020 and 1899 Pennsylvania Avenue and Liberty Place in 2019).

9

EX-99.2 3 pgre-ex992_6.htm EX-99.2 pgre-ex992_6.htm

 

 

Exhibit 99.2

 

 

 

 

SUPPLEMENTAL OPERATING AND FINANCIAL DATA

FOR THE QUARTER ENDED MARCH 31, 2020

 


 

 

 

 

 

 

FORWARD-LOOKING STATEMENTS

 

 

 

 

 

 

 

 

 

 

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

 


- 2 -


 

 

 

 

 

 

 

TABLE OF CONTENTS

 

 

 

 

Page

 

Company Profile

4

 

 

 

 

 

Research Coverage

5

 

 

 

 

 

Selected Financial Information

 

 

 

Guidance

6

 

 

Financial Highlights

7

 

 

Consolidated Balance Sheets

8

 

 

Consolidated Statements of Income

9

 

 

Select Income Statement Data

10

 

 

Funds From Operations ("FFO")

11

 

 

Funds Available for Distribution ("FAD")

12

 

 

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

13

 

 

Net Operating Income ("NOI")

14 - 15

 

 

Same Store Results

16 - 17

 

 

Consolidated Joint Ventures and Fund

18 - 19

 

 

Unconsolidated Joint Ventures

20 - 23

 

 

Capital Structure

24

 

 

Debt Analysis

25

 

 

Debt Maturities

26

 

 

 

 

 

Selected Property Data

 

 

 

Portfolio Summary

27

 

 

Same Store Leased Occupancy

 

 

 

28

 

 

Top Tenants and Industry Diversification

29

 

 

Leasing Activity

30

 

 

Lease Expirations

31 - 34

 

 

Cash Basis Capital Expenditures

35

 

 

 

 

 

 

 

 

 

 

 

 

Definitions

36 - 37

- 3 -


 

 

 

 

 

 

 

COMPANY PROFILE

 

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

 

EXECUTIVE MANAGEMENT

 

Albert Behler

 

Chairman, Chief Executive Officer and President

 

 

Wilbur Paes

 

Executive Vice President, Chief Financial Officer and Treasurer

 

 

Peter Brindley

 

Executive Vice President, Leasing

 

 

David Zobel

 

Executive Vice President, Head of Acquisitions

 

 

BOARD OF DIRECTORS

 

Albert Behler

 

Director, Chairman of the Board

Thomas Armbrust

 

Director

Martin Bussmann

 

Director

Colin Dyer

 

Director

Dan Emmett

 

Director, Chair of Nominating and Corporate Governance Committee; Lead Independent Director

Lizanne Galbreath

 

Director, Chair of Compensation Committee

Karin Klein

 

Director

Peter Linneman

 

Director, Chair of Audit Committee

Katharina Otto-Bernstein

 

Director

Mark Patterson

 

Director

COMPANY INFORMATION

 

Corporate Headquarters

Investor Relations

Stock Exchange Listing

Trading Symbol

1633 Broadway, Suite 1801

IR@paramount-group.com

New York Stock Exchange

PGRE

New York, NY 10019

(212) 492-2298

 

 

(212) 237-3100

 

 

 

- 4 -


 

 

 

 

 

 

 

RESEARCH COVERAGE (1)

 

 

James Feldman

Thomas Catherwood

Derek Johnston

Steve Sakwa

Bank of America Merrill Lynch

BTIG

Deutsche Bank

Evercore ISI

(646) 855-5808

(212) 738-6140

(904) 520-4973

(212) 446-9462

james.feldman@baml.com

tcatherwood@btig.com

derek.johnston@db.com

steve.sakwa@evercoreisi.com

 

 

 

 

 

 

 

 

 

Richard Skidmore

Daniel Ismail

Omotayo Okusanya

Vikram Malhotra

Goldman Sachs

Green Street Advisors

Mizuho Securities USA Inc.

Morgan Stanley

(801) 741-5459

(949) 640-8780

(646) 949-9672

(212) 761-7064

richard.skidmore@gs.com

dismail@greenst.com

omotayo.okusanya@mizuhogroup.com

vikram.malhotra@morganstanley.com

 

 

 

 

 

 

 

 

 

Blaine Heck

 

 

 

 

 

 

Wells Fargo

 

 

 

 

 

 

(443) 263-6529

 

 

 

 

 

 

blaine.heck@wellsfargo.com

 

 

 

 

 

 

 

(1)

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

- 5 -


 

 

 

 

 

 

 

GUIDANCE

 

The Company had previously provided its 2020 guidance on February 12, 2020, prior to the coronavirus (COVID-19) global pandemic, which has materially impacted the U.S. and global economy. Given the economic uncertainty and rapidly-evolving circumstances related to the COVID-19 pandemic, the Company is withdrawing its previously issued 2020 guidance and is not providing an updated outlook at this time. The Company will discuss the first quarter results and provide commentary on its business performance during its first quarter conference call.

 

- 6 -


 

 

 

 

 

 

 

FINANCIAL HIGHLIGHTS

(unaudited and in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

SELECTED FINANCIAL DATA

March 31, 2020

 

 

March 31, 2019

 

 

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to common stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

$

1,968

 

 

$

1,809

 

 

$

(13,158

)

 

 

Discontinued operations

 

1,380

 

 

 

1,900

 

 

 

(36,987

)

 

Net income (loss) attributable to common shareholders

$

3,348

 

 

$

3,709

 

 

$

(50,145

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share - basic and diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

Per share from continuing operations

$

0.01

 

 

$

0.01

 

 

$

(0.06

)

 

 

Per share from discontinued operations

 

0.00

 

 

 

0.01

 

 

 

(0.16

)

 

Net income (loss) per share - basic and diluted

$

0.01

 

 

$

0.02

 

 

$

(0.22

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core FFO attributable to common stockholders (1)

$

61,509

 

 

$

57,113

 

 

$

58,272

 

 

 

Per share - diluted

$

0.27

 

 

$

0.24

 

 

$

0.26

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PGRE's share of Cash NOI (1)

$

98,529

 

 

$

93,069

 

 

$

95,755

 

 

PGRE's share of NOI (1)

$

110,557

 

 

$

104,943

 

 

$

107,716

 

 

Same Store Cash NOI (1)

% Change

 

 

Same Store NOI (1)

% Change

 

 

Three Months Ended March 31, 2020 vs. March 31, 2019

 

4.3

%

 

    Three Months Ended March 31, 2020 vs. March 31, 2019

 

1.5

%

 

PORTFOLIO STATISTICS (at PGRE Share)

 

 

 

 

 

 

 

 

 

 

 

As of

 

 

 

 

 

 

 

 

 

 

March 31, 2020

 

 

December 31, 2019

 

 

September 30, 2019

 

 

June 30, 2019

 

 

March 31, 2019

 

Leased % (1)

 

95.9

%

 

 

95.9

%

 

 

96.5

%

 

 

96.7

%

 

96.0%

 

 

Same Store Leased % (1)

% Change

 

 

Same Store Leased % (1)

% Change

 

 

March 31, 2020 vs. December 31, 2019

 

0.0

%

 

    March 31, 2020 vs. March 31, 2019

 

(0.1

%)

 

COMMON SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

Share Price:

March 31, 2020

 

 

December 31, 2019

 

 

September 30, 2019

 

 

June 30, 2019

 

 

March 31, 2019

 

High

$

15.00

 

 

$

13.99

 

 

$

14.42

 

 

$

15.11

 

 

$                 15.03

 

Low

$

6.42

 

 

$

12.65

 

 

$

12.77

 

 

$

13.53

 

 

$                 12.18

 

Closing (end of period)

$

8.80

 

 

$

13.92

 

 

$

13.35

 

 

$

14.01

 

 

$                 14.19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends per common share

$

0.10

 

 

$

0.10

 

 

$

0.10

 

 

$

0.10

 

 

$                   0.10

Annualized dividends per common share

$

0.40

 

 

$

0.40

 

 

$

0.40

 

 

$

0.40

 

 

$                   0.40

Dividend yield (on closing share price)

 

4.5

%

 

 

2.9

%

 

 

3.0

%

 

 

2.9

%

 

2.8%

 

(1)

See page 36 for our definition of this measure.

- 7 -


 

 

 

 

 

 

 

CONSOLIDATED BALANCE SHEETS

(unaudited and in thousands)

 

 

 

 

 

 

 

 

March 31, 2020

 

 

December 31, 2019

 

Assets:

 

 

 

 

 

 

 

 

Real estate, at cost:

 

 

 

 

 

 

 

 

 

Land

$

1,966,237

 

 

$

1,966,237

 

 

 

Buildings and improvements

 

5,948,631

 

 

 

5,923,648

 

 

 

 

 

 

 

 

 

 

7,914,868

 

 

 

7,889,885

 

 

 

Accumulated depreciation and amortization

 

(832,164

)

 

 

(790,216

)

 

Real estate, net

 

7,082,704

 

 

 

7,099,669

 

 

Cash and cash equivalents

 

377,689

 

 

 

306,215

 

 

Restricted cash

 

20,563

 

 

 

25,272

 

 

Investments in unconsolidated joint ventures

 

429,358

 

 

 

449,180

 

 

Investments in unconsolidated real estate funds

 

13,116

 

 

 

10,317

 

 

Accounts and other receivables, net

 

17,826

 

 

 

19,231

 

 

Due from affiliates

 

-

 

 

 

36,918

 

 

Deferred rent receivable

 

312,249

 

 

 

301,588

 

 

Deferred charges, net

 

124,908

 

 

 

126,367

 

 

Intangible assets, net

 

191,183

 

 

 

203,169

 

 

Assets related to discontinued operations

 

104,028

 

 

 

104,836

 

 

Other assets

 

80,632

 

 

 

51,373

 

Total assets

$

8,754,256

 

 

$

8,734,135

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Notes and mortgages payable, net

$

3,788,684

 

 

$

3,783,851

 

 

Revolving credit facility

 

200,000

 

 

 

36,918

 

 

Accounts payable and accrued expenses

 

109,563

 

 

 

117,356

 

 

Dividends and distributions payable

 

24,342

 

 

 

25,255

 

 

Intangible liabilities, net

 

69,752

 

 

 

73,789

 

 

Other liabilities

 

54,723

 

 

 

66,004

 

Total liabilities

 

4,247,064

 

 

 

4,103,173

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

Paramount Group, Inc. equity

 

3,722,261

 

 

 

3,785,730

 

 

Noncontrolling interests in:

 

 

 

 

 

 

 

 

 

Consolidated joint ventures

 

359,120

 

 

 

360,778

 

 

 

Consolidated real estate fund

 

80,476

 

 

 

72,396

 

 

 

Operating Partnership

 

345,335

 

 

 

412,058

 

Total equity

 

4,507,192

 

 

 

4,630,962

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and equity

$

8,754,256

 

 

$

8,734,135

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- 8 -


 

 

 

CONSOLIDATED STATEMENTS OF INCOME

(unaudited and in thousands, except per share amounts)

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

March 31, 2020

 

 

March 31, 2019

 

 

December 31, 2019

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental revenue (1)

$

175,425

 

 

$

175,341

 

 

$

179,008

 

 

 

Fee and other income (1)

 

8,561

 

 

 

9,048

 

 

 

7,761

 

 

Total revenues

 

183,986

 

 

 

184,389

 

 

 

186,769

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating

 

67,014

 

 

 

65,461

 

 

 

65,659

 

 

 

Depreciation and amortization

 

58,427

 

 

 

60,712

 

 

 

58,419

 

 

 

General and administrative (1)

 

12,249

 

 

 

17,443

 

 

 

17,099

 

 

 

Transaction related costs

 

203

 

 

 

736

 

 

 

295

 

 

Total expenses

 

137,893

 

 

 

144,352

 

 

 

141,472

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from unconsolidated joint ventures

 

(4,221

)

 

 

(1,027

)

 

 

(1,891

)

 

 

Income (loss) from unconsolidated real estate funds

 

52

 

 

 

46

 

 

 

(614

)

 

 

Interest and other (loss) income, net (1)

 

(996

)

 

 

3,900

 

 

 

2,139

 

 

 

Interest and debt expense (1)

 

(36,619

)

 

 

(36,924

)

 

 

(45,217

)

 

 

Loss on early extinguishment of debt

 

-

 

 

 

-

 

 

 

(11,989

)

 

Income (loss) from continuing operations, before income taxes

 

4,309

 

 

 

6,032

 

 

 

(12,275

)

 

 

Income tax (expense) benefit

 

(604

)

 

 

(1,138

)

 

 

511

 

 

Income (loss) from continuing operations, net

 

3,705

 

 

 

4,894

 

 

 

(11,764

)

 

Income (loss) from discontinued operations, net

 

1,521

 

 

 

2,106

 

 

 

(41,013

)

 

Net income (loss)

 

5,226

 

 

 

7,000

 

 

 

(52,777

)

 

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

 

 

 

 

 

 

 

 

 

 

 

Consolidated joint ventures

 

(1,514

)

 

 

(2,794

)

 

 

(2,769

)

 

 

Consolidated real estate fund

 

(23

)

 

 

(94

)

 

 

(57

)

 

 

Operating Partnership

 

(341

)

 

 

(403

)

 

 

5,458

 

 

Net income (loss) attributable to common stockholders

$

3,348

 

 

$

3,709

 

 

$

(50,145

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per diluted share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations, net

$

0.01

 

 

$

0.01

 

 

$

(0.06

)

 

 

Income (loss) from discontinued operations, net

 

0.00

 

 

 

0.01

 

 

 

(0.16

)

 

Net income (loss) per diluted share

$

0.01

 

 

$

0.02

 

 

$

(0.22

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

See page 10 for details.

- 9 -


 

 

 

 

 

 

 

SELECT INCOME STATEMENT DATA

(unaudited and in thousands)

 

 

 

 

 

 

Three Months Ended

 

Rental Revenue:

March 31, 2020

 

 

March 31, 2019

 

 

December 31, 2019

 

 

Property rentals

$

149,138

 

 

$

146,192

 

 

$

150,571

 

 

Tenant reimbursements

 

14,049

 

 

 

13,265

 

 

 

14,830

 

 

Straight-line rent adjustments

 

10,695

 

 

 

11,669

 

 

 

10,357

 

 

Amortization of above and below-market leases, net

 

1,543

 

 

 

3,296

 

 

 

2,483

 

 

Lease termination income

 

-

 

 

 

919

 

 

 

767

 

Total rental revenue

$

175,425

 

 

$

175,341

 

 

$

179,008

 

 

 

 

 

 

 

 

Three Months Ended

 

Fee and Other Income:

March 31, 2020

 

 

March 31, 2019

 

 

December 31, 2019

 

 

Property management

$

2,450

 

 

$

1,642

 

 

$

1,919

 

 

Asset management

 

3,521

 

 

 

2,318

 

 

 

3,169

 

 

Acquisition and disposition

 

-

 

 

 

1,331

 

 

 

-

 

 

Other

 

359

 

 

 

708

 

 

 

285

 

 

Total fee income

 

6,330

 

 

 

5,999

 

 

 

5,373

 

 

Other (primarily parking income and tenant requested

 

 

 

 

 

 

 

 

 

 

 

 

 

services, including overtime heating and cooling)

 

2,231

 

 

 

3,049

 

 

 

2,388

 

Total fee and other income

$

8,561

 

 

$

9,048

 

 

$

7,761

 

 

 

 

 

 

 

 

Three Months Ended

 

General and Administrative:

March 31, 2020

 

 

March 31, 2019

 

 

December 31, 2019

 

 

Cash general and administrative

$

8,836

 

 

$

7,772

 

 

$

11,253

 

 

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

 

5,397

 

 

 

7,602

 

 

 

5,001

 

 

Mark-to-market of deferred compensation plan liabilities (offset by an

 

 

 

 

 

 

 

 

 

 

 

 

 

increase in the mark-to-market of plan assets, which is included

 

 

 

 

 

 

 

 

 

 

 

 

 

in "interest and other (loss) income, net")

 

(1,984

)

 

 

2,069

 

 

 

845

 

Total general and administrative

$

12,249

 

 

$

17,443

 

 

$

17,099

 

 

 

 

 

 

 

 

Three Months Ended

 

Interest and Other (Loss) Income, net:

March 31, 2020

 

 

March 31, 2019

 

 

December 31, 2019

 

 

Interest income, net

$

988

 

 

$

1,377

 

 

$

1,294

 

 

Mark-to-market of deferred compensation plan assets (offset by an

 

 

 

 

 

 

 

 

 

 

 

 

 

increase in the mark-to-market of plan liabilities, which is included

 

 

 

 

 

 

 

 

 

 

 

 

 

in "general and administrative" expenses)

 

(1,984

)

 

 

2,069

 

 

 

845

 

 

Preferred equity investment income (1)

 

-

 

 

 

454

 

 

 

-

 

Total interest and other (loss) income, net

$

(996

)

 

$

3,900

 

 

$

2,139

 

 

 

(1)

Represents 100% of the investment income from PGRESS Equity Holdings, L.P., of which our 24.4% share is $111 for the three months ended March 31, 2019. On March 1, 2019, our

only remaining preferred equity investment was redeemed.

 

 

 

 

 

 

Three Months Ended

 

 

Interest and Debt Expense:

March 31, 2020

 

 

March 31, 2019

 

 

December 31, 2019

 

 

 

Interest expense

$

34,301

 

 

$

34,123

 

 

$

34,344

 

 

 

Amortization of deferred financing costs

 

2,318

 

 

 

2,801

 

 

 

10,873

 

(1)

Total interest and debt expense

$

36,619

 

 

$

36,924

 

 

$

45,217

 

 

 

(1)

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


- 10 -


 

 

 

 

 

FFO

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

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

 

March 31, 2020

 

 

March 31, 2019

 

 

December 31, 2019

 

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

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

5,226

 

 

$

7,000

 

 

$

(52,777

)

 

Real estate depreciation and amortization (including our share

 

 

 

 

 

 

 

 

 

 

 

 

 

of unconsolidated joint ventures)

 

70,940

 

 

 

63,688

 

 

 

65,368

 

 

Adjustments related to discontinued operations

 

690

 

 

 

2,377

 

 

 

1,156

 

 

Real estate impairment loss related to discontinued operations

 

-

 

 

 

-

 

 

 

42,000

 

 

FFO (1)

 

76,856

 

 

 

73,065

 

 

 

55,747

 

 

Less FFO attributable to noncontrolling interests in:

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated joint ventures

 

(8,969

)

 

 

(11,748

)

 

 

(11,360

)

 

 

Consolidated real estate fund

 

(23

)

 

 

(94

)

 

 

(57

)

 

FFO attributable to Paramount Group Operating Partnership

 

67,864

 

 

 

61,223

 

 

 

44,330

 

 

Less FFO attributable to noncontrolling interests in Operating Partnership

 

(6,278

)

 

 

(5,998

)

 

 

(4,352

)

 

FFO attributable to common stockholders (1)

$

61,586

 

 

$

55,225

 

 

$

39,978

 

 

Per diluted share

$

0.27

 

 

$

0.24

 

 

$

0.18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO

$

76,856

 

 

$

73,065

 

 

$

55,747

 

 

Non-core items:

 

 

 

 

 

 

 

 

 

 

 

 

 

Our share of earnings in excess of distributions received and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(distributions received from 712 Fifth Avenue in excess of earnings)

 

(388

)

 

 

1,270

 

 

 

(1,001

)

 

 

Loss on early extinguishment of debt

 

-

 

 

 

-

 

 

 

11,989

 

 

 

Non-cash write-off of deferred financing costs

 

-

 

 

 

-

 

 

 

8,215

 

 

 

Other, net

 

303

 

 

 

823

 

 

 

1,083

 

 

Core FFO (1)

 

76,771

 

 

 

75,158

 

 

 

76,033

 

 

Less Core FFO attributable to noncontrolling interests in:

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated joint ventures

 

(8,969

)

 

 

(11,748

)

 

 

(11,360

)

 

 

Consolidated real estate fund

 

(23

)

 

 

(94

)

 

 

(57

)

 

Core FFO attributable to Paramount Group Operating Partnership

 

67,779

 

 

 

63,316

 

 

 

64,616

 

 

Less Core FFO attributable to noncontrolling interests in Operating Partnership

 

(6,270

)

 

 

(6,203

)

 

 

(6,344

)

 

Core FFO attributable to common stockholders (1)

$

61,509

 

 

$

57,113

 

 

$

58,272

 

 

Per diluted share

$

0.27

 

 

$

0.24

 

 

$

0.26

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

227,769,213

 

 

 

233,419,299

 

 

 

227,276,459

 

 

Effect of dilutive securities

 

35,963

 

 

 

39,139

 

 

 

50,071

 

 

Denominator for FFO and Core FFO per diluted share

 

227,805,176

 

 

 

233,458,438

 

 

 

227,326,530

 


(1)

See page 36 for our definition of this measure.

- 11 -


 

 

 

 

 

 

 

FAD

(unaudited and in thousands)

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

March 31, 2020

 

 

March 31, 2019

 

 

December 31, 2019

 

 

Reconciliation of Core FFO to FAD:

 

 

 

 

 

 

 

 

 

 

 

 

 

Core FFO

$

76,771

 

 

$

75,158

 

 

$

76,033

 

 

 

Add (subtract) adjustments to arrive at FAD:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Straight-line rent adjustments (including our share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

of unconsolidated joint ventures)

 

(11,804

)

 

 

(11,869

)

 

 

(11,218

)

 

 

 

Amortization of above and below-market leases, net (including

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

our share of unconsolidated joint ventures)

 

(2,832

)

 

 

(3,240

)

 

 

(3,141

)

 

 

 

Amortization of deferred financing costs (including our share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

of unconsolidated joint ventures)

 

2,630

 

 

 

2,926

 

 

 

2,843

 

(3)

 

 

Amortization of stock-based compensation expense

 

5,397

 

 

 

7,602

 

 

 

5,001

 

 

 

 

Expenditures to maintain assets

 

(4,709

)

 

 

(3,382

)

 

 

(8,408

)

 

 

 

Second generation tenant improvements and leasing commissions

 

(23,933

)

 

 

(15,435

)

 

 

(24,697

)

 

 

 

Adjustments related to discontinued operations

 

119

 

 

 

(113

)

 

 

111

 

 

 

FAD (1)

 

41,639

 

 

 

51,647

 

 

 

36,524

 

 

 

Less FAD attributable to noncontrolling interests in:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated joint ventures

 

(2,773

)

 

 

(6,533

)

 

 

(6,756

)

 

 

 

Consolidated real estate fund

 

(23

)

 

 

(94

)

 

 

(57

)

 

 

FAD attributable to Paramount Group Operating Partnership

 

38,843

 

 

 

45,020

 

 

 

29,711

 

 

 

Less FAD attributable to noncontrolling interests in Operating Partnership

 

(3,593

)

 

 

(4,410

)

 

 

(2,917

)

 

 

FAD attributable to common stockholders (1) (2)

$

35,250

 

 

$

40,610

 

 

$

26,794

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends declared on common stock

$

22,246

 

 

$

23,448

 

 

$

22,743

 

 

 

(1)

See page 36 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.

(3)

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

 

 

- 12 -


 

 

 

 

 

 

 

EBITDAre

(unaudited and in thousands)

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

 

March 31, 2020

 

 

March 31, 2019

 

 

December 31, 2019

 

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

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

5,226

 

 

$

7,000

 

 

$

(52,777

)

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization (including our share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

of unconsolidated joint ventures)

 

70,940

 

 

 

63,688

 

 

 

65,368

 

 

 

Interest and debt expense (including our share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

of unconsolidated joint ventures)

 

42,121

 

 

 

39,166

 

 

 

49,072

 

 

 

Income tax expense (benefit) (including our share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

of unconsolidated joint ventures)

 

618

 

 

 

1,139

 

 

 

(509

)

 

 

Adjustments related to discontinued operations

 

690

 

 

 

2,377

 

 

 

1,156

 

 

 

Real estate impairment loss related to discontinued operations

 

-

 

 

 

-

 

 

 

42,000

 

 

EBITDAre (1)

 

119,595

 

 

 

113,370

 

 

 

104,310

 

 

Less EBITDAre attributable to noncontrolling interests in:

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated joint ventures

 

(15,793

)

 

 

(18,329

)

 

 

(18,199

)

 

 

Consolidated real estate fund

 

(131

)

 

 

(98

)

 

 

(53

)

 

PGRE's share of EBITDAre (1)

$

103,671

 

 

$

94,943

 

 

$

86,058

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDAre

$

119,595

 

 

$

113,370

 

 

$

104,310

 

 

Add (subtract) adjustments to arrive at Adjusted EBITDAre:

 

 

 

 

 

 

 

 

 

 

 

 

 

Our share of earnings in excess of distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

(388

)

 

 

1,270

 

 

 

(1,001

)

 

 

Loss on early extinguishment of debt

 

-

 

 

 

-

 

 

 

11,989

 

 

 

Other, net

 

29

 

 

 

634

 

 

 

878

 

 

Adjusted EBITDAre (1)

 

119,236

 

 

 

115,274

 

 

 

116,176

 

 

Less Adjusted EBITDAre attributable to noncontrolling interests in:

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated joint ventures

 

(15,793

)

 

 

(18,329

)

 

 

(18,195

)

 

PGRE's share of Adjusted EBITDAre (1)

$

103,443

 

 

$

96,945

 

 

$

97,981

 

 

(1)

See page 36 for our definition of this measure.

- 13 -


 

 

 

 

 

 

 

NOI

(unaudited and in thousands)

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

 

March 31, 2020

 

 

March 31, 2019

 

 

December 31, 2019

 

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

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

5,226

 

 

$

7,000

 

 

$

(52,777

)

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

58,427

 

 

 

60,712

 

 

 

58,419

 

 

 

General and administrative

 

12,249

 

 

 

17,443

 

 

 

17,099

 

 

 

Interest and debt expense

 

36,619

 

 

 

36,924

 

 

 

45,217

 

 

 

Loss on early extinguishment of debt

 

-

 

 

 

-

 

 

 

11,989

 

 

 

Income tax expense (benefit)

 

604

 

 

 

1,138

 

 

 

(511

)

 

 

NOI from unconsolidated joint ventures

 

13,392

 

 

 

5,411

 

 

 

7,840

 

 

 

Fee income

 

(6,330

)

 

 

(5,999

)

 

 

(5,373

)

 

 

Interest and other loss (income), net

 

996

 

 

 

(3,900

)

 

 

(2,139

)

 

 

Adjustments related to discontinued operations

 

690

 

 

 

2,377

 

 

 

1,156

 

 

 

Real estate impairment loss related to discontinued operations

 

-

 

 

 

-

 

 

 

42,000

 

 

 

Other, net

 

4,372

 

 

 

1,717

 

 

 

2,800

 

 

NOI (1)

 

126,245

 

 

 

122,823

 

 

 

125,720

 

 

Less NOI attributable to noncontrolling interests in:

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated joint ventures

 

(15,691

)

 

 

(17,909

)

 

 

(18,107

)

 

 

Consolidated real estate fund

 

3

 

 

 

29

 

 

 

103

 

 

PGRE's share of NOI (1)

$

110,557

 

 

$

104,943

 

 

$

107,716

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOI

$

126,245

 

 

$

122,823

 

 

$

125,720

 

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

Straight-line rent adjustments (including our share of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

unconsolidated joint ventures)

 

(11,804

)

 

 

(11,869

)

 

 

(11,218

)

 

 

Amortization of above and below-market leases, net (including

 

 

 

 

 

 

 

 

 

 

 

 

 

 

our share of unconsolidated joint ventures)

 

(2,832

)

 

 

(3,240

)

 

 

(3,141

)

 

 

Adjustments related to discontinued operations

 

119

 

 

 

111

 

 

 

132

 

 

Cash NOI (1)

 

111,728

 

 

 

107,825

 

 

 

111,493

 

 

Less Cash NOI attributable to noncontrolling interests in:

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated joint ventures

 

(13,202

)

 

 

(14,785

)

 

 

(15,841

)

 

 

Consolidated real estate fund

 

3

 

 

 

29

 

 

 

103

 

 

PGRE's share of Cash NOI (1)

$

98,529

 

 

$

93,069

 

 

$

95,755

 

 

(1)

See page 36 for our definition of this measure.

- 14 -


 

 

 

 

 

 

 

 

 

 

 

NOI

(unaudited and in thousands)

 

 

 

 

 

 

 

Three Months Ended March 31, 2020

 

 

 

 

 

 

 

 

Total

 

 

New York

 

 

San Francisco

 

 

Other

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

5,226

 

 

$

9,715

 

 

$

5,905

 

 

$

(10,394

)

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

58,427

 

 

 

40,019

 

 

 

17,327

 

 

 

1,081

 

 

 

 

General and administrative

 

12,249

 

 

 

-

 

 

 

-

 

 

 

12,249

 

 

 

 

Interest and debt expense

 

36,619

 

 

 

22,732

 

 

 

12,562

 

 

 

1,325

 

 

 

 

Income tax expense (benefit)

 

604

 

 

 

-

 

 

 

(7

)

 

 

611

 

 

 

 

NOI from unconsolidated joint ventures

 

13,392

 

 

 

2,944

 

 

 

10,382

 

 

 

66

 

 

 

 

Fee income

 

(6,330

)

 

 

-

 

 

 

-

 

 

 

(6,330

)

 

 

 

Interest and other loss (income), net

 

996

 

 

 

-

 

 

 

(187

)

 

 

1,183

 

 

 

 

Adjustments related to discontinued operations

 

690

 

 

 

-

 

 

 

-

 

 

 

690

 

 

 

 

Other, net

 

4,372

 

 

 

82

 

 

 

4,148

 

 

 

142

 

 

 

NOI (1)

 

126,245

 

 

 

75,492

 

 

 

50,130

 

 

 

623

 

 

 

Less NOI attributable to noncontrolling interests in:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated joint ventures

 

(15,691

)

 

 

-

 

 

 

(15,691

)

 

 

-

 

 

 

 

Consolidated real estate fund

 

3

 

 

 

-

 

 

 

-

 

 

 

3

 

 

 

PGRE's share of NOI for the three months ended March 31, 2020

$

110,557

 

 

$

75,492

 

 

$

34,439

 

 

$

626

 

 

 

PGRE's share of NOI for the three months ended March 31, 2019

$

104,943

 

 

$

77,650

 

 

$

23,629

 

 

$

3,664

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOI

$

126,245

 

 

$

75,492

 

 

$

50,130

 

 

$

623

 

 

 

Add (subtract) adjustments to arrive at Cash NOI:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Straight-line rent adjustments (including our share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

of unconsolidated joint ventures)

 

(11,804

)

 

 

(6,410

)

 

 

(5,475

)

 

 

81

 

 

 

 

Amortization of above and below-market leases, net (including

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

our share of unconsolidated joint ventures)

 

(2,832

)

 

 

388

 

 

 

(3,220

)

 

 

-

 

 

 

 

Adjustments related to discontinued operations

 

119

 

 

 

-

 

 

 

-

 

 

 

119

 

 

 

Cash NOI (1)

 

111,728

 

 

 

69,470

 

 

 

41,435

 

 

 

823

 

 

 

Less Cash NOI attributable to noncontrolling interests in:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated joint ventures

 

(13,202

)

 

 

-

 

 

 

(13,202

)

 

 

-

 

 

 

 

Consolidated real estate fund

 

3

 

 

 

-

 

 

 

-

 

 

 

3

 

 

 

PGRE's share of Cash NOI for the three months ended March 31, 2020

$

98,529

 

 

$

69,470

 

 

$

28,233

 

 

$

826

 

 

 

PGRE's share of Cash NOI for the three months ended March 31, 2019

$

93,069

 

 

$

68,801

 

 

$

20,426

 

 

$

3,842

 

 

 

(1)

See page 36 for our definition of this measure.

- 15 -


 

 

 

 

 

 

 

SAME STORE RESULTS

(unaudited and in thousands)

 

SAME STORE CASH NOI (1)

Three Months Ended March 31, 2020

 

 

 

 

 

 

 

 

Total

 

 

New York

 

 

San Francisco

 

 

Other

 

 

PGRE's share of Cash NOI for the three months ended March 31, 2020

$

98,529

 

 

$

69,470

 

 

$

28,233

 

 

$

826

 

 

 

Acquisitions (2)

 

(6,806

)

 

 

-

 

 

 

(6,806

)

 

 

-

 

 

 

Dispositions / Discontinued Operations (3)

 

(2,330

)

 

 

-

 

 

 

-

 

 

 

(2,330

)

 

 

Lease termination income and other, net

 

1,421

 

 

 

(76

)

 

 

(7

)

 

 

1,504

 

 

PGRE's share of Same Store Cash NOI for the three months ended March 31, 2020

$

90,814

 

 

$

69,394

 

 

$

21,420

 

 

$

-

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2019

 

 

 

 

 

 

 

 

Total

 

 

New York

 

 

San Francisco

 

 

Other

 

 

PGRE's share of Cash NOI for the three months ended March 31, 2019

$

93,069

 

 

$

68,801

 

 

$

20,426

 

 

$

3,842

 

 

 

Acquisitions

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

Dispositions / Discontinued Operations (3)

 

(4,594

)

 

 

-

 

 

 

-

 

 

 

(4,594

)

 

 

Lease termination income and other, net

 

(1,409

)

 

 

(2,161

)

 

 

-

 

 

 

752

 

 

PGRE's share of Same Store Cash NOI for the three months ended March 31, 2019

$

87,066

 

 

$

66,640

 

 

$

20,426

 

 

$

-

 

 

 

Increase in PGRE's share of Same Store Cash NOI

$

3,748

 

 

$

2,754

 

 

$

994

 

 

$

-

 

 

 

 

% Increase

 

4.3

%

 

 

4.1

%

 

 

4.9

%

 

 

 

 

 

 

 

(1)

See page 36 for our definition of this measure.

(2)

Represents our share of Cash NOI attributable to acquired properties (Market Center, 55 Second Street, and 111 Sutter Street in San Francisco) for the months in which they were not owned by us in both reporting periods.

(3)

Represents Cash NOI from discontinued operations (1899 Pennsylvania Avenue in 2020 and 1899 Pennsylvania Avenue and Liberty Place in 2019).

 

- 16 -


 

 

 

 

 

 

 

SAME STORE RESULTS

(unaudited and in thousands)

 

SAME STORE NOI (1)

Three Months Ended March 31, 2020

 

 

 

 

 

 

 

 

Total

 

 

New York

 

 

San Francisco

 

 

Other

 

 

PGRE's share of NOI for the three months ended March 31, 2020

$

110,557

 

 

$

75,492

 

 

$

34,439

 

 

$

626

 

 

 

Acquisitions (2)

 

(9,292

)

 

 

-

 

 

 

(9,292

)

 

 

-

 

 

 

Dispositions / Discontinued Operations (3)

 

(2,211

)

 

 

-

 

 

 

-

 

 

 

(2,211

)

 

 

Lease termination income and other, net

 

1,502

 

 

 

(76

)

 

 

(7

)

 

 

1,585

 

 

PGRE's share of Same Store NOI for the three months ended March 31, 2020

$

100,556

 

 

$

75,416

 

 

$

25,140

 

 

$

-

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2019

 

 

 

 

 

 

 

 

Total

 

 

New York

 

 

San Francisco

 

 

Other

 

 

PGRE's share of NOI for the three months ended March 31, 2019

$

104,943

 

 

$

77,650

 

 

$

23,629

 

 

$

3,664

 

 

 

Acquisitions

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

Dispositions / Discontinued Operations (3)

 

(4,483

)

 

 

-

 

 

 

-

 

 

 

(4,483

)

 

 

Lease termination income and other, net

 

(1,342

)

 

 

(2,161

)

 

 

-

 

 

 

819

 

 

PGRE's share of Same Store NOI for the three months ended March 31, 2019

$

99,118

 

 

$

75,489

 

 

$

23,629

 

 

$

-

 

 

 

Increase (decrease) in PGRE's share of Same Store NOI

$

1,438

 

 

$

(73

)

 

$

1,511

 

 

$

-

 

 

 

% Increase (decrease)

 

1.5

%

 

 

(0.1

%)

 

 

6.4

%

 

 

 

 

 

 

(1)

See page 36 for our definition of this measure.

(2)

Represents our share of NOI attributable to acquired properties (Market Center, 55 Second Street and 111 Sutter Street in San Francisco) for the months in which they were not owned by us in both reporting periods.

(3)

Represents NOI from discontinued operations (1899 Pennsylvania Avenue in 2020 and 1899 Pennsylvania Avenue and Liberty Place in 2019).

  

- 17 -


 

 

 

 

 

 

 

CONSOLIDATED JOINT VENTURES AND FUND - BALANCE SHEETS

(unaudited and in thousands)

 

 

 

 

 

 

As of March 31, 2020

 

 

As of December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

 

 

 

 

 

Consolidated Joint Ventures

 

 

Fund

 

 

Consolidated Joint Ventures

 

 

Fund

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

One

 

 

300

 

 

 

 

 

 

Residential

 

 

Consolidated

 

 

One

 

 

300

 

 

 

 

 

 

Residential

 

 

 

 

 

 

 

Joint

 

 

Market

 

 

Mission

 

 

 

 

 

 

Development

 

 

Joint

 

 

Market

 

 

Mission

 

 

 

 

 

 

Development

 

 

 

 

 

 

 

Ventures

 

 

Plaza

 

 

Street

 

 

Other (1)

 

 

Fund

 

 

Ventures

 

 

Plaza

 

 

Street

 

 

Other (1)

 

 

Fund

 

PGRE Ownership

 

 

 

 

49.0%

 

 

31.1%

 

 

Various

 

 

7.4%

 

 

 

 

 

 

49.0%

 

 

31.1%

 

 

Various

 

 

7.4%

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate, net

$

1,681,036

 

 

$

1,199,461

 

 

$

481,575

 

 

$

-

 

 

$

-

 

 

$

1,685,391

 

 

$

1,203,232

 

 

$

482,159

 

 

$

-

 

 

$

-

 

 

Cash and cash equivalents

 

71,025

 

 

 

49,101

 

 

 

21,021

 

 

 

903

 

 

 

2,184

 

 

 

64,172

 

 

 

46,601

 

 

 

16,668

 

 

 

903

 

 

 

2,258

 

 

Restricted cash

 

1,305

 

 

 

1,305

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

3,398

 

 

 

3,398

 

 

 

-

 

 

 

-

 

 

 

-

 

 

Investments in unconsolidated

   joint ventures

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

69,533

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

69,535

 

 

Accounts and other receivables, net

 

3,471

 

 

 

1,129

 

 

 

2,342

 

 

 

-

 

 

 

166

 

 

 

2,015

 

 

 

1,085

 

 

 

930

 

 

 

-

 

 

 

125

 

 

Deferred rent receivable

 

60,416

 

 

 

49,085

 

 

 

11,331

 

 

 

-

 

 

 

-

 

 

 

57,338

 

 

 

46,901

 

 

 

10,437

 

 

 

-

 

 

 

-

 

 

Deferred charges, net

 

25,245

 

 

 

14,602

 

 

 

10,643

 

 

 

-

 

 

 

-

 

 

 

24,030

 

 

 

13,330

 

 

 

10,700

 

 

 

-

 

 

 

-

 

 

Intangible assets, net

 

27,553

 

 

 

20,299

 

 

 

7,254

 

 

 

-

 

 

 

-

 

 

 

29,872

 

 

 

21,943

 

 

 

7,929

 

 

 

-

 

 

 

-

 

 

Other assets

 

4,347

 

 

 

4,279

 

 

 

68

 

 

 

-

 

 

 

15,693

 

 

 

5,386

 

 

 

4,937

 

 

 

449

 

 

 

-

 

 

 

15,746

 

Total Assets

$

1,874,398

 

 

$

1,339,261

 

 

$

534,234

 

 

$

903

 

 

$

87,576

 

 

$

1,871,602

 

 

$

1,341,427

 

 

$

529,272

 

 

$

903

 

 

$

87,664

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes and mortgages payable, net

$

1,208,656

 

 

$

970,940

 

 

$

237,716

 

 

$

-

 

 

$

-

 

 

$

1,205,324

 

 

$

970,681

 

 

$

234,643

 

 

$

-

 

 

$

-

 

 

Accounts payable and

   accrued expenses

 

39,100

 

 

 

26,481

 

 

 

12,563

 

 

 

56

 

 

 

65

 

 

 

35,191

 

 

 

26,165

 

 

 

8,971

 

 

 

55

 

 

 

61

 

 

Intangible liabilities, net

 

18,110

 

 

 

16,770

 

 

 

1,340

 

 

 

-

 

 

 

-

 

 

 

19,841

 

 

 

18,405

 

 

 

1,436

 

 

 

-

 

 

 

-

 

 

Other liabilities

 

4,290

 

 

 

4,287

 

 

 

3

 

 

 

-

 

 

 

-

 

 

 

4,273

 

 

 

4,270

 

 

 

3

 

 

 

-

 

 

 

8,774

 

Total Liabilities

 

1,270,156

 

 

 

1,018,478

 

 

 

251,622

 

 

 

56

 

 

 

65

 

 

 

1,264,629

 

 

 

1,019,521

 

 

 

245,053

 

 

 

55

 

 

 

8,835

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Paramount Group, Inc. equity

 

245,122

 

 

 

157,251

 

 

 

87,146

 

 

 

725

 

 

 

7,035

 

 

 

246,195

 

 

 

157,801

 

 

 

87,669

 

 

 

725

 

 

 

6,433

 

 

Noncontrolling interests

 

359,120

 

 

 

163,532

 

 

 

195,466

 

 

 

122

 

 

 

80,476

 

 

 

360,778

 

 

 

164,105

 

 

 

196,550

 

 

 

123

 

 

 

72,396

 

Total Equity

 

604,242

 

 

 

320,783

 

 

 

282,612

 

 

 

847

 

 

 

87,511

 

 

 

606,973

 

 

 

321,906

 

 

 

284,219

 

 

 

848

 

 

 

78,829

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Equity

$

1,874,398

 

 

$

1,339,261

 

 

$

534,234

 

 

$

903

 

 

$

87,576

 

 

$

1,871,602

 

 

$

1,341,427

 

 

$

529,272

 

 

$

903

 

 

$

87,664

 

 

(1)

Represents PGRESS Equity Holdings, L.P.

- 18 -


 

 

 

 

 

 

 

CONSOLIDATED JOINT VENTURES AND FUND – OPERATING RESULTS

(unaudited and in thousands) 

 

 

 

 

Three Months Ended March 31, 2020

 

 

Three Months Ended March 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

 

 

 

 

Consolidated Joint Ventures

 

 

Fund

 

 

Consolidated Joint Ventures

 

 

Fund

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

One

 

 

300

 

 

Residential

 

 

Consolidated

 

 

One

 

 

300

 

 

 

 

 

 

Residential

 

 

 

 

 

 

Joint

 

 

Market

 

 

Mission

 

 

Development

 

 

Joint

 

 

Market

 

 

Mission

 

 

 

 

 

 

Development

 

 

 

 

 

 

Ventures

 

 

Plaza

 

 

Street

 

 

Fund

 

 

Ventures

 

 

Plaza

 

 

Street

 

 

Other (2)

 

 

Fund

 

 

Total revenues

$

43,052

 

 

$

35,492

 

 

$

7,560

 

 

$

-

 

 

$

45,657

 

 

$

33,879

 

 

$

11,778

 

 

$

-

 

 

$

-

 

 

Total operating expenses

 

12,680

 

 

 

9,473

 

 

 

3,207

 

 

 

2

 

 

 

12,439

 

 

 

9,013

 

 

 

3,426

 

 

 

-

 

 

 

18

 

 

Net operating income (loss) (1)

 

30,372

 

 

 

26,019

 

 

 

4,353

 

 

 

(2

)

 

 

33,218

 

 

 

24,866

 

 

 

8,352

 

 

 

-

 

 

 

(18

)

 

Depreciation and amortization

 

(13,556

)

 

 

(10,535

)

 

 

(3,021

)

 

 

-

 

 

 

(15,761

)

 

 

(10,641

)

 

 

(5,120

)

 

 

-

 

 

 

-

 

 

Interest and other income, net

 

187

 

 

 

152

 

 

 

35

 

 

 

125

 

 

 

588

 

 

 

81

 

 

 

53

 

 

 

454

 

 

 

89

 

 

Interest and debt expense

 

(12,562

)

 

 

(10,194

)

 

 

(2,368

)

 

 

(141

)

 

 

(12,166

)

 

 

(10,085

)

 

 

(2,081

)

 

 

-

 

 

 

-

 

 

Loss from unconsolidated joint ventures

 

-

 

 

 

-

 

 

 

-

 

 

 

(1

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(15

)

 

Net income (loss) before income taxes

 

4,441

 

 

 

5,442

 

 

 

(1,001

)

 

 

(19

)

 

 

5,879

 

 

 

4,221

 

 

 

1,204

 

 

 

454

 

 

 

56

 

 

Income tax benefit (expense)

 

10

 

 

 

(1

)

 

 

11

 

 

 

(2

)

 

 

(6

)

 

 

(3

)

 

 

(3

)

 

 

-

 

 

 

(4

)

 

Net income (loss)

$

4,451

 

 

$

5,441

 

 

$

(990

)

 

$

(21

)

 

$

5,873

 

 

$

4,218

 

 

$

1,201

 

 

$

454

 

 

$

52

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PGRE's share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ownership

Total

 

 

49.0%

 

 

31.1%

 

 

7.4%

 

 

Total

 

 

49.0%

 

 

31.1%

 

 

Various

 

 

7.4%

 

 

 

Net income (loss)

$

2,335

 

 

$

2,666

 

 

$

(331

)

 

$

(44

)

 

$

2,534

 

 

$

2,067

 

 

$

356

 

 

$

111

 

 

$

(42

)

 

 

Add: Management fee income

 

602

 

 

 

177

 

 

 

425

 

 

 

-

 

 

 

545

 

 

 

189

 

 

 

356

 

 

 

-

 

 

 

-

 

 

 

PGRE's share of net income (loss)

 

2,937

 

 

 

2,843

 

 

 

94

 

 

 

(44

)

 

 

3,079

 

 

 

2,256

 

 

 

712

 

 

 

111

 

 

 

(42

)

 

 

Add: Real estate depreciation

   and amortization

 

6,101

 

 

 

5,162

 

 

 

939

 

 

 

-

 

 

 

6,807

 

 

 

5,214

 

 

 

1,593

 

 

 

-

 

 

 

-

 

 

 

FFO/Core FFO (1)

$

9,038

 

 

$

8,005

 

 

$

1,033

 

 

$

(44

)

 

$

9,886

 

 

$

7,470

 

 

$

2,305

 

 

$

111

 

 

$

(42

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncontrolling interests' share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ownership

Total

 

 

51.0%

 

 

68.9%

 

 

92.6%

 

 

Total

 

 

51.0%

 

 

68.9%

 

 

Various

 

 

92.6%

 

 

 

Net income (loss)

$

2,116

 

 

$

2,775

 

 

$

(659

)

 

$

23

 

 

$

3,339

 

 

$

2,151

 

 

$

845

 

 

$

343

 

 

$

94

 

 

 

Less: Management fee expense

 

(602

)

 

 

(177

)

 

 

(425

)

 

 

-

 

 

 

(545

)

 

 

(189

)

 

 

(356

)

 

 

-

 

 

 

-

 

 

 

Net income (loss) attributable to

   noncontrolling interests

 

1,514

 

 

 

2,598

 

 

 

(1,084

)

 

 

23

 

 

 

2,794

 

 

 

1,962

 

 

 

489

 

 

 

343

 

 

 

94

 

 

 

Add: Real estate depreciation

   and amortization

 

7,455

 

 

 

5,373

 

 

 

2,082

 

 

 

-

 

 

 

8,954

 

 

 

5,427

 

 

 

3,527

 

 

 

-

 

 

 

-

 

 

 

FFO/Core FFO (1)

$

8,969

 

 

$

7,971

 

 

$

998

 

 

$

23

 

 

$

11,748

 

 

$

7,389

 

 

$

4,016

 

 

$

343

 

 

$

94

 

 

 

(1)

See page 36 for our definition of these measures.

(2)

Represents PGRESS Equity Holdings, L.P.

- 19 -


 

 

 

 

 

 

 

 

 

 

 

UNCONSOLIDATED JOINT VENTURES - BALANCE SHEETS

(unaudited and in thousands)

 

 

 

 

 

 

 

As of March 31, 2020

 

 

 

 

 

 

 

 

 

 

 

712 Fifth

 

 

Market

 

 

55 Second

 

 

111 Sutter

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

Avenue

 

 

Center

 

 

Street

 

 

Street

 

 

Other (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PGRE Ownership

 

 

 

 

50.0%

 

 

67.0%

 

 

44.1%

 

 

49.0%

 

 

Various

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate, net

$

2,311,751

 

 

$

207,571

 

 

$

669,507

 

 

$

384,078

 

 

$

217,148

 

 

$

833,447

 

 

Cash and cash equivalents

 

74,750

 

 

 

27,265

 

 

 

17,648

 

 

 

9,023

 

 

 

2,425

 

 

 

18,389

 

 

Restricted cash

 

5,571

 

 

 

2,224

 

 

 

-

 

 

 

-

 

 

 

3,347

 

 

 

-

 

 

Accounts and other receivables, net

 

2,133

 

 

 

705

 

 

 

506

 

 

 

419

 

 

 

473

 

 

 

30

 

 

Deferred rent receivable

 

20,104

 

 

 

14,443

 

 

 

1,715

 

 

 

1,177

 

 

 

1,759

 

 

 

1,010

 

 

Deferred charges, net

 

10,406

 

 

 

7,645

 

 

 

677

 

 

 

561

 

 

 

1,523

 

 

 

-

 

 

Intangible assets, net

 

155,881

 

 

 

-

 

 

 

55,372

 

 

 

29,171

 

 

 

9,635

 

 

 

61,703

 

 

Other assets

 

6,138

 

 

 

3,994

 

 

 

713

 

 

 

39

 

 

 

62

 

 

 

1,330

 

Total Assets

$

2,586,734

 

 

$

263,847

 

 

$

746,138

 

 

$

424,468

 

 

$

236,372

 

 

$

915,909

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes and mortgages payable, net

$

1,615,821

 

 

$

297,056

 

 

$

397,627

 

 

$

186,473

 

 

$

144,152

 

 

$

590,513

 

 

Accounts payable and accrued expenses

 

37,104

 

 

 

6,589

 

 

 

12,542

 

 

 

5,645

 

 

 

4,935

 

 

 

7,393

 

 

Intangible liabilities, net

 

35,672

 

 

 

-

 

 

 

12,943

 

 

 

18,595

 

 

 

4,134

 

 

 

-

 

 

Other liabilities

 

23,830

 

 

 

272

 

 

 

21,503

 

 

 

4

 

 

 

220

 

 

 

1,831

 

Total Liabilities

 

1,712,427

 

 

 

303,917

 

 

 

444,615

 

 

 

210,717

 

 

 

153,441

 

 

 

599,737

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Equity

 

874,307

 

 

 

(40,070

)

 

 

301,523

 

 

 

213,751

 

 

 

82,931

 

 

 

316,172

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Equity

$

2,586,734

 

 

$

263,847

 

 

$

746,138

 

 

$

424,468

 

 

$

236,372

 

 

$

915,909

 

 

(1)

Represents 60 Wall and Oder-Center, Germany.

 


- 20 -


 

 

UNCONSOLIDATED JOINT VENTURES - BALANCE SHEETS

(unaudited and in thousands)

 

 

 

 

 

 

 

As of December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

712 Fifth

 

 

Market

 

 

55 Second

 

 

111 Sutter

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

Avenue

 

 

Center

 

 

Street

 

 

Street

 

 

Other (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PGRE Ownership

 

 

 

 

50.0%

 

 

67.0%

 

 

44.1%

 

 

49.0%

 

 

Various

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate, net

$

2,318,866

 

 

$

206,913

 

 

$

671,276

 

 

$

385,614

 

 

$

216,936

 

 

$

838,127

 

 

Cash and cash equivalents

 

68,962

 

 

 

31,216

 

 

 

9,934

 

 

 

7,254

 

 

 

1,866

 

 

 

18,692

 

 

Restricted cash

 

5,755

 

 

 

2,224

 

 

 

-

 

 

 

-

 

 

 

3,531

 

 

 

-

 

 

Accounts and other receivables, net

 

3,036

 

 

 

1,611

 

 

 

684

 

 

 

280

 

 

 

461

 

 

 

-

 

 

Deferred rent receivable

 

18,296

 

 

 

14,711

 

 

 

416

 

 

 

917

 

 

 

1,127

 

 

 

1,125

 

 

Deferred charges, net

 

10,074

 

 

 

7,703

 

 

 

250

 

 

 

561

 

 

 

1,560

 

 

 

-

 

 

Intangible assets, net

 

172,041

 

 

 

-

 

 

 

61,061

 

 

 

30,996

 

 

 

11,090

 

 

 

68,894

 

 

Other assets

 

2,601

 

 

 

158

 

 

 

1,632

 

 

 

189

 

 

 

81

 

 

 

541

 

Total Assets

$

2,599,631

 

 

$

264,536

 

 

$

745,253

 

 

$

425,811

 

 

$

236,652

 

 

$

927,379

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes and mortgages payable, net

$

1,613,451

 

 

$

296,953

 

 

$

397,398

 

 

$

186,433

 

 

$

142,783

 

 

$

589,884

 

 

Accounts payable and accrued expenses

 

29,659

 

 

 

6,607

 

 

 

5,875

 

 

 

4,778

 

 

 

4,482

 

 

 

7,917

 

 

Intangible liabilities, net

 

38,377

 

 

 

-

 

 

 

14,228

 

 

 

19,668

 

 

 

4,481

 

 

 

-

 

 

Other liabilities

 

1,505

 

 

 

271

 

 

 

-

 

 

 

4

 

 

 

174

 

 

 

1,056

 

Total Liabilities

 

1,682,992

 

 

 

303,831

 

 

 

417,501

 

 

 

210,883

 

 

 

151,920

 

 

 

598,857

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Equity

 

916,639

 

 

 

(39,295

)

 

 

327,752

 

 

 

214,928

 

 

 

84,732

 

 

 

328,522

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Equity

$

2,599,631

 

 

$

264,536

 

 

$

745,253

 

 

$

425,811

 

 

$

236,652

 

 

$

927,379

 

 

(1)

Represents 60 Wall and Oder-Center, Germany.

 


- 21 -


 

 

 

 

 

 

 

UNCONSOLIDATED JOINT VENTURES - OPERATING RESULTS

(unaudited and in thousands)

 

 

 

 

 

 

Three Months Ended March 31, 2020

 

 

 

 

 

 

 

 

 

 

712 Fifth

 

 

Market

 

 

55 Second

 

 

111 Sutter

 

 

 

 

 

 

 

 

 

 

Total

 

 

Avenue

 

 

Center

 

 

Street

 

 

Street

 

 

Other (1)

 

Total revenues

$

63,194

 

 

$

10,908

 

 

$

16,348

 

 

$

8,529

 

 

$

5,292

 

 

$

22,117

 

Total operating expenses

 

25,940

 

 

 

6,411

 

 

 

6,675

 

 

 

3,391

 

 

 

1,906

 

 

 

7,557

 

Net operating income (2)

 

37,254

 

 

 

4,497

 

 

 

9,673

 

 

 

5,138

 

 

 

3,386

 

 

 

14,560

 

Depreciation and amortization

 

(30,182

)

 

 

(2,665

)

 

 

(10,572

)

 

 

(4,762

)

 

 

(3,055

)

 

 

(9,128

)

Interest and other income (loss), net

 

77

 

 

 

66

 

 

 

(8

)

 

 

-

 

 

 

(3

)

 

 

22

 

Interest and debt expense

 

(15,908

)

 

 

(2,673

)

 

 

(3,349

)

 

 

(1,857

)

 

 

(1,567

)

 

 

(6,462

)

Net loss before income taxes

 

(8,759

)

 

 

(775

)

 

 

(4,256

)

 

 

(1,481

)

 

 

(1,239

)

 

 

(1,008

)

Income tax expense

 

(37

)

 

 

-

 

 

 

(4

)

 

 

(15

)

 

 

(6

)

 

 

(12

)

Net loss

$

(8,796

)

 

$

(775

)

 

$

(4,260

)

 

$

(1,496

)

 

$

(1,245

)

 

$

(1,020

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PGRE's share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ownership

Total

 

 

50.0%

 

 

67.0%

 

 

44.1%

 

 

49.0%

 

 

Various

 

 

Net loss

$

(4,570

)

 

$

(388

)

 

$

(2,854

)

 

$

(684

)

 

$

(610

)

 

$

(34

)

 

Less: Step-up basis adjustment

 

(38

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(38

)

 

Add: Our share of earnings in excess of

   distributions received from 712 Fifth Avenue

 

388

 

 

 

388

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

PGRE's share of net loss

 

(4,220

)

 

 

-

 

 

 

(2,854

)

 

 

(684

)

 

 

(610

)

 

 

(72

)

 

Add: Real estate depreciation and amortization

 

12,513

 

 

 

1,333

 

 

 

7,083

 

 

 

2,100

 

 

 

1,497

 

 

 

500

 

 

FFO (2)

 

8,293

 

 

 

1,333

 

 

 

4,229

 

 

 

1,416

 

 

 

887

 

 

 

428

 

 

Less: Our share of Earnings in excess of

   distributions received from 712 Fifth Avenue

 

(388

)

 

 

(388

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

Core FFO (2)

$

7,905

 

 

$

945

 

 

$

4,229

 

 

$

1,416

 

 

$

887

 

 

$

428

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Joint Venture Partners' share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ownership

Total

 

 

50.0%

 

 

33.0%

 

 

55.9%

 

 

51.0%

 

 

Various

 

 

Net loss

$

(4,226

)

 

$

(387

)

 

$

(1,406

)

 

$

(812

)

 

$

(635

)

 

$

(986

)

 

Add: Real estate depreciation and amortization

 

17,707

 

 

 

1,332

 

 

 

3,489

 

 

 

2,662

 

 

 

1,558

 

 

 

8,666

 

 

FFO/Core FFO (2)

$

13,481

 

 

$

945

 

 

$

2,083

 

 

$

1,850

 

 

$

923

 

 

$

7,680

 

 

(1)

Represents 60 Wall and Oder-Center, Germany.

(2)

See page 36 for our definition of these measures.

 


- 22 -


 

 

UNCONSOLIDATED JOINT VENTURES - OPERATING RESULTS

(unaudited and in thousands)

 

 

 

 

 

 

Three Months Ended March 31, 2019

 

 

 

 

 

 

 

 

 

 

712 Fifth

 

 

111 Sutter

 

 

 

 

 

 

 

 

 

 

Total

 

 

Avenue

 

 

Street

 

 

Other (1)

 

Total revenues

$

38,322

 

 

$

14,194

 

 

$

2,497

 

 

$

21,631

 

Total operating expenses

 

14,353

 

 

 

6,271

 

 

 

1,068

 

 

 

7,014

 

Net operating income (2)

 

23,969

 

 

 

7,923

 

 

 

1,429

 

 

 

14,617

 

Depreciation and amortization

 

(14,125

)

 

 

(2,830

)

 

 

(2,163

)

 

 

(9,132

)

Interest and other income (loss), net

 

98

 

 

 

93

 

 

 

9

 

 

 

(4

)

Interest and debt expense

 

(11,527

)

 

 

(2,646

)

 

 

(1,054

)

 

 

(7,827

)

Net (loss) income before income taxes

 

(1,585

)

 

 

2,540

 

 

 

(1,779

)

 

 

(2,346

)

Income tax expense

 

(8

)

 

 

-

 

 

 

-

 

 

 

(8

)

Net (loss) income

$

(1,593

)

 

$

2,540

 

 

$

(1,779

)

 

$

(2,354

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PGRE's share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ownership

Total

 

 

50.0%

 

 

49.0%

 

 

Various

 

 

Net income (loss)

$

297

 

 

$

1,270

 

 

$

(872

)

 

$

(101

)

 

Less: Step-up basis adjustment

 

(39

)

 

 

-

 

 

 

-

 

 

 

(39

)

 

Less: Our share of earnings in excess of

   distributions received from 712 Fifth Avenue

 

(1,270

)

 

 

(1,270

)

 

 

-

 

 

 

-

 

 

PGRE's share of net loss

 

(1,012

)

 

 

-

 

 

 

(872

)

 

 

(140

)

 

Add: Real estate depreciation and amortization

 

2,976

 

 

 

1,415

 

 

 

1,060

 

 

 

501

 

 

FFO (2)

 

1,964

 

 

 

1,415

 

 

 

188

 

 

 

361

 

 

Add: Our share of earnings in excess of

   distributions received from 712 Fifth Avenue

 

1,270

 

 

 

1,270

 

 

 

-

 

 

 

-

 

 

Core FFO (2)

$

3,234

 

 

$

2,685

 

 

$

188

 

 

$

361

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Joint Venture Partners' share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ownership

Total

 

 

50.0%

 

 

51.0%

 

 

Various

 

 

Net (loss) income

$

(1,890

)

 

$

1,270

 

 

$

(907

)

 

$

(2,253

)

 

Add: Real estate depreciation and amortization

 

11,176

 

 

 

1,415

 

 

 

1,103

 

 

 

8,658

 

 

FFO/Core FFO (2)

$

9,286

 

 

$

2,685

 

 

$

196

 

 

$

6,405

 

 

(1)

Represents 60 Wall and Oder-Center, Germany.

(2)

See page 36 for our definition of these measures.

 

 

- 23 -


 

 

 

 

 

 

 

CAPITAL STRUCTURE

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

 

 

 

 

 

 

 

 

 

 

As of March 31, 2020

 

Debt:

 

 

 

 

Consolidated debt:

 

 

 

 

 

Notes and mortgages payable (1)

$

3,812,716

 

 

 

$1.0 billion Revolving Credit Facility

 

200,000

 

 

 

 

 

 

 

 

 

 

 

4,012,716

 

 

Less:

 

 

 

 

 

Noncontrolling interests' share of consolidated debt (2)

 

(661,036

)

 

Add:

 

 

 

 

 

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

 

604,112

 

 

PGRE's Share of Total Debt (4)

 

3,955,792

 

 

 

 

 

 

 

Shares / Units

 

 

Share Price as of

 

 

 

 

 

Equity:

Outstanding

 

 

March 31, 2020

 

 

 

 

 

 

Common stock

 

221,750,408

 

 

$

8.80

 

 

 

1,951,404

 

 

Operating Partnership units

 

20,583,820

 

 

 

8.80

 

 

 

181,138

 

 

Total equity

 

242,334,228

 

 

 

8.80

 

 

 

2,132,542

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Market Capitalization

$

6,088,334

 

 

(1)

Represents contractual amount due pursuant to the respective debt agreements.

(2)

Represents noncontrolling interests’ share of One Market Plaza and 300 Mission Street.

(3)

Represents our share of Market Center, 712 Fifth Avenue, Market Center, 55 Second Street, 111 Sutter Street, 60 Wall Street and Oder-Center, Germany.

(4)

See page 36 for our definition of this measure.

- 24 -


 

 

 

 

 

 

 

 

 

 

DEBT ANALYSIS

(unaudited and in thousands)

 

 

 

 

 

 

Total Debt

 

 

 

 

Fixed Rate Debt

 

 

 

 

Variable Rate Debt

 

Consolidated Debt:

Amount

 

 

Rate

 

 

 

 

Amount

 

 

Rate

 

 

 

 

Amount

 

 

Rate

 

 

1633 Broadway

$

1,250,000

 

 

 

2.99

%

 

 

 

$

1,250,000

 

 

 

2.99

%

 

 

 

$

-

 

 

 

-

 

 

1301 Avenue of the Americas

 

850,000

 

 

 

3.20

%

 

 

 

 

500,000

 

 

 

3.05

%

 

 

 

 

350,000

 

 

 

3.43

%

 

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

 

237,716

 

 

 

3.65

%

 

 

 

 

237,716

 

 

 

3.65

%

 

 

 

 

-

 

 

 

-

 

 

Revolving Credit Facility

 

200,000

 

 

 

1.96

%

 

 

 

 

-

 

 

 

-

 

 

 

 

 

200,000

 

 

 

1.96

%

Total consolidated debt

 

4,012,716

 

 

 

3.38

%

 

 

 

 

3,462,716

 

 

 

3.45

%

 

 

 

 

550,000

 

 

 

2.89

%

Noncontrolling interests' share

 

(661,036

)

 

 

3.94

%

 

 

 

 

(661,036

)

 

 

3.94

%

 

 

 

 

-

 

 

 

-

 

PGRE's share of consolidated debt

$

3,351,680

 

 

 

3.27

%

 

 

 

$

2,801,680

 

 

 

3.34

%

 

 

 

$

550,000

 

 

 

2.89

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unconsolidated Joint Venture Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

712 Fifth Avenue

$

300,000

 

 

 

3.39

%

 

 

 

$

300,000

 

 

 

3.39

%

 

 

 

$

-

 

 

 

-

 

 

Market Center

 

402,000

 

 

 

3.07

%

 

 

 

 

402,000

 

 

 

3.07

%

 

 

 

 

-

 

 

 

-

 

 

55 Second Street

 

187,500

 

 

 

3.88

%

 

 

 

 

187,500

 

 

 

3.88

%

 

 

 

 

-

 

 

 

-

 

 

111 Sutter Street

 

145,988

 

 

 

3.74

%

 

 

 

 

-

 

 

 

-

 

 

 

 

 

145,988

 

 

 

3.74

%

 

60 Wall Street

 

575,000

 

 

 

3.16

%

 

 

 

 

-

 

 

 

-

 

 

 

 

 

575,000

 

 

 

3.16

%

 

Oder-Center, Germany

 

18,538

 

 

 

4.62

%

 

 

 

 

18,538

 

 

 

4.62

%

 

 

 

 

-

 

 

 

-

 

Total unconsolidated debt

 

1,629,026

 

 

 

3.33

%

 

 

 

 

908,038

 

 

 

3.37

%

 

 

 

 

720,988

 

 

 

3.27

%

Joint venture partners' share

 

(1,024,914

)

 

 

3.32

%

 

 

 

 

(404,268

)

 

 

3.46

%

 

 

 

 

(620,646

)

 

 

3.23

%

PGRE's share of unconsolidated debt

$

604,112

 

 

 

3.35

%

 

 

 

$

503,770

 

 

 

3.30

%

 

 

 

$

100,342

 

 

 

3.57

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PGRE's share of Total Debt (1)

$

3,955,792

 

 

 

3.28

%

 

 

 

$

3,305,450

 

 

 

3.33

%

 

 

 

$

650,342

 

 

 

3.00

%

 

Revolving Credit Facility Covenants: (2)

Required

 

Actual

 

 

 

Debt Composition (at PGRE's share):

Amount

 

 

%

 

 

 

Total Debt / Total Assets

Less than 60%

 

44.0

%

 

 

   Fixed rate debt:

 

 

 

 

 

 

 

 

 

Secured Debt / Total Assets

Less than 50%

 

43.7

%

 

 

 

Consolidated fixed rate debt

$

2,801,680

 

 

 

 

 

 

 

Fixed Charge Coverage

Greater than 1.5x

3.6x

 

 

 

 

Unconsolidated fixed rate debt

 

503,770

 

 

 

 

 

 

 

Unsecured Debt / Unencumbered Assets

Less than 60%

 

0.0

%

 

 

 

PGRE's share of fixed rate debt

 

3,305,450

 

 

 

83.6

%

 

 

Unencumbered Interest Coverage

Greater than 1.75x

31.8x

 

 

 

   Variable rate debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated variable rate debt

 

550,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unconsolidated variable rate debt

 

100,342

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PGRE's share of variable rate debt

 

650,342

 

 

 

16.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PGRE's share of Total Debt (1)

$

3,955,792

 

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

__________________________________________________

(1)

See page 36 for our definition of this measure.

(2)

This section presents ratios as of March 31, 2020 in accordance with the terms of our revolving credit facility, 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 testing our compliance with the revolving credit facility.

 

- 25 -


 

 

 

 

 

 

 

DEBT MATURITIES

(unaudited and in thousands)

 

Consolidated Debt:

2020

 

 

2021

 

 

2022

 

 

2023

 

 

2024

 

 

Thereafter

 

 

Total

 

 

1301 Avenue of the Americas

$

-

 

 

$

850,000

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

850,000

 

 

300 Mission Street

 

-

 

 

 

-

 

 

 

-

 

 

 

237,716

 

 

 

-

 

 

 

-

 

 

 

237,716

 

 

One Market Plaza

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

975,000

 

 

 

-

 

 

 

975,000

 

 

1633 Broadway

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,250,000

 

 

 

1,250,000

 

 

31 West 52nd Street

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

500,000

 

 

 

500,000

 

 

Revolving Credit Facility

 

-

 

 

 

-

 

 

 

200,000

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

200,000

 

Total consolidated debt

 

-

 

 

 

850,000

 

 

 

200,000

 

 

 

237,716

 

 

 

975,000

 

 

 

1,750,000

 

 

 

4,012,716

 

Noncontrolling interests' share

 

-

 

 

 

-

 

 

 

-

 

 

 

(163,786

)

 

 

(497,250

)

 

 

-

 

 

 

(661,036

)

PGRE's share of consolidated debt

$

-

 

 

$

850,000

 

 

$

200,000

 

 

$

73,930

 

 

$

477,750

 

 

$

1,750,000

 

 

$

3,351,680

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unconsolidated Joint Venture Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

60 Wall Street

$

-

 

 

$

-

 

 

$

575,000

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

575,000

 

 

Oder-Center, Germany

 

-

 

 

 

-

 

 

 

18,538

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

18,538

 

 

111 Sutter Street

 

-

 

 

 

-

 

 

 

-

 

 

 

145,988

 

 

 

-

 

 

 

-

 

 

 

145,988

 

 

Market Center

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

402,000

 

 

 

402,000

 

 

712 Fifth Avenue

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

300,000

 

 

 

300,000

 

 

55 Second Street

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

187,500

 

 

 

187,500

 

Total unconsolidated debt

 

-

 

 

 

-

 

 

 

593,538

 

 

 

145,988

 

 

 

-

 

 

 

889,500

 

 

 

1,629,026

 

Joint venture partners' share

 

-

 

 

 

-

 

 

 

(562,969

)

 

 

(74,454

)

 

 

-

 

 

 

(387,491

)

 

 

(1,024,914

)

PGRE's share of unconsolidated debt

$

-

 

 

$

-

 

 

$

30,569

 

 

$

71,534

 

 

$

-

 

 

$

502,009

 

 

$

604,112

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PGRE's Share of Total Debt (1)

$

-

 

 

$

850,000

 

 

$

230,569

 

 

$

145,464

 

 

$

477,750

 

 

$

2,252,009

 

 

$

3,955,792

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average rate

 

-

%

 

 

3.20

%

 

 

2.13

%

 

 

3.69

%

 

 

4.03

%

 

 

3.24

%

 

 

3.28

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% of debt maturing

 

-

%

 

 

21.5

%

 

 

5.8

%

 

 

3.7

%

 

 

12.1

%

 

 

56.9

%

 

 

100.0

%

 

(1)

See page 36 for our definition of this measure.

- 26 -


 

 

 

 

 

 

 

PORTFOLIO SUMMARY

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

 

 

 

 

 

Paramount

 

 

Number of

 

 

Square

 

 

%

 

 

%

 

 

Annualized Rent (1)

 

 

Property

 

Submarket

 

Ownership

 

 

Buildings

 

 

Feet

 

 

Leased (1)

 

 

Occupied (1)

 

 

Amount

 

 

Per Square Foot (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of March 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New York:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   1633 Broadway (3)

West Side

 

100.0

%

 

 

1

 

 

 

2,499,105

 

 

 

98.4

%

 

 

98.4

%

 

$

183,724

 

 

$

76.48

 

 

   1301 Avenue of the Americas

Sixth Avenue / Rock Center

 

100.0

%

 

 

1

 

 

 

1,765,688

 

 

 

99.0

%

 

 

98.1

%

 

 

137,719

 

 

 

79.81

 

 

   1325 Avenue of the Americas

Sixth Avenue / Rock Center

 

100.0

%

 

 

1

 

 

 

810,993

 

 

 

91.8

%

 

 

90.4

%

 

 

48,627

 

 

 

67.71

 

 

   31 West 52nd Street

Sixth Avenue / Rock Center

 

100.0

%

 

 

1

 

 

 

763,140

 

 

 

98.3

%

 

 

97.5

%

 

 

70,803

 

 

 

92.53

 

 

   900 Third Avenue

East Side

 

100.0

%

 

 

1

 

 

 

591,401

 

 

 

82.4

%

 

 

76.4

%

 

 

31,841

 

 

 

70.54

 

 

   712 Fifth Avenue

Madison / Fifth Avenue

 

50.0

%

 

 

1

 

 

 

543,411

 

 

 

75.2

%

 

 

71.1

%

 

 

44,255

 

 

 

114.55

 

 

   60 Wall Street

Downtown

 

5.0

%

 

 

1

 

 

 

1,625,483

 

 

 

100.0

%

 

 

100.0

%

 

 

73,600

 

 

 

45.28

 

(4)

     Subtotal / Weighted average

 

 

 

 

 

 

 

7

 

 

 

8,599,221

 

 

 

95.6

%

 

 

94.6

%

 

 

590,569

 

 

 

73.08

 

 

     PGRE's share

 

 

 

 

 

 

 

7

 

 

 

6,783,469

 

 

 

95.5

%

 

 

94.3

%

 

 

498,529

 

 

 

78.77

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Francisco:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   One Market Plaza

South Financial District

 

49.0

%

 

 

2

 

 

 

1,586,598

 

 

 

98.2

%

 

 

98.0

%

 

 

138,425

 

 

 

87.85

 

 

   Market Center

South Financial District

 

67.0

%

 

 

2

 

 

 

745,446

 

 

 

95.6

%

 

 

93.3

%

 

 

57,484

 

 

 

82.27

 

 

   300 Mission Street

South Financial District

 

31.1

%

 

 

1

 

 

 

660,702

 

 

 

99.1

%

 

 

58.9

%

 

 

28,046

 

 

 

72.14

 

 

   One Front Street

North Financial District

 

100.0

%

 

 

1

 

 

 

643,307

 

 

 

100.0

%

 

 

98.8

%

 

 

51,000

 

 

 

79.53

 

 

   55 Second Street

South Financial District

 

44.1

%

 

 

1

 

 

 

379,621

 

 

 

95.7

%

 

 

95.7

%

 

 

27,550

 

 

 

76.05

 

 

   111 Sutter Street

North Financial District

 

49.0

%

 

 

1

 

 

 

276,431

 

 

 

86.3

%

 

 

86.2

%

 

 

18,687

 

 

 

79.17

 

 

     Subtotal / Weighted average

 

 

 

 

 

 

 

8

 

 

 

4,292,105

 

 

 

97.2

%

 

 

90.3

%

 

 

321,192

 

 

 

82.29

 

 

     PGRE's share

 

 

 

 

 

 

 

8

 

 

 

2,428,531

 

 

 

97.4

%

 

 

93.1

%

 

 

187,371

 

 

 

82.25

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Subtotal / Weighted average

 

 

 

 

 

 

 

15

 

 

 

12,891,326

 

 

 

96.1

%

 

 

93.2

%

 

 

911,761

 

 

$

76.10

 

 

     PGRE's share

 

 

 

 

 

 

 

15

 

 

 

9,212,000

 

 

 

96.0

%

 

 

94.0

%

 

 

685,900

 

 

$

79.70

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   1899 Pennsylvania Avenue (5)

CBD

 

100.0

%

 

 

1

 

 

 

190,955

 

 

 

90.4

%

 

 

90.4

%

 

 

15,050

 

 

 

86.61

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Total / Weighted average

 

 

 

 

 

 

 

16

 

 

 

13,082,281

 

 

 

96.1

%

 

 

93.1

%

 

 

926,811

 

 

$

76.25

 

 

     PGRE's share

 

 

 

 

 

 

 

16

 

 

 

9,402,955

 

 

 

95.9

%

 

 

93.9

%

 

 

700,950

 

 

$

79.84

 

 

 

(1)

See page 36 for our definition of this measure.

(2)

Represents office and retail space only.

(3)

On March 27, 2020, we entered into an agreement to sell a 10.0% interest in 1633 Broadway for $240.0 million (based on a property valuation of $2.4 billion, or $960 per square foot). The transaction, which is subject to customary closing conditions, is expected to close in the second quarter of 2020.

(4)

Represents “triple-net” rent.

(5)

On March 6, 2020, we entered into an agreement to sell 1899 Pennsylvania Avenue, a 191,000 square foot office building located in Washington, D.C. The transaction, which is subject to customary closing conditions, is expected to close in the fourth quarter of 2020.

 

- 27 -


 

 

 

 

 

 

 

SAME STORE LEASED OCCUPANCY

(unaudited)

 

 

 

 

 

 

 

 

As of March 31, 2020

 

 

As of December 31, 2019

 

 

Change in

 

 

 

 

Paramount

 

 

 

 

 

 

Same Store

 

 

 

 

 

 

Same Store

 

 

Same Store

 

Property

 

Ownership

 

 

Leased % (1)

 

 

Leased % (1)

 

 

Leased % (1)

 

 

Leased % (1)

 

 

Leased %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New York:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   1633 Broadway

 

100.0

%

 

 

98.4

%

 

 

98.4

%

 

 

98.4

%

 

 

98.4

%

 

 

-

%

   1301 Avenue of the Americas

 

100.0

%

 

 

99.0

%

 

 

99.0

%

 

 

99.4

%

 

 

99.4

%

 

 

(0.4

%)

   1325 Avenue of the Americas

 

100.0

%

 

 

91.8

%

 

 

91.8

%

 

 

91.1

%

 

 

91.1

%

 

 

0.7

%

   31 West 52nd Street

 

100.0

%

 

 

98.3

%

 

 

98.3

%

 

 

97.5

%

 

 

97.5

%

 

 

0.8

%

   900 Third Avenue

 

100.0

%

 

 

82.4

%

 

 

82.4

%

 

 

83.4

%

 

 

83.4

%

 

 

(1.0

%)

   712 Fifth Avenue

 

50.0

%

 

 

75.2

%

 

 

75.2

%

 

 

74.2

%

 

 

74.2

%

 

 

1.0

%

   60 Wall Street

 

5.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

-

%

     Weighted average

 

 

 

 

 

95.6

%

 

 

95.6

%

 

 

95.6

%

 

 

95.6

%

 

 

-

%

     PGRE's share

 

 

 

 

 

95.5

%

 

 

95.5

%

 

 

95.5

%

 

 

95.5

%

 

 

-

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Francisco:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   One Market Plaza

 

49.0

%

 

 

98.2

%

 

 

98.2

%

 

 

98.4

%

 

 

98.4

%

 

 

(0.2

%)

   Market Center

 

67.0

%

 

 

95.6

%

 

 

95.6

%

 

 

95.6

%

 

 

95.6

%

 

 

-

%

   300 Mission Street

 

31.1

%

 

 

99.1

%

 

 

99.1

%

 

 

100.0

%

 

 

100.0

%

 

 

(0.9

%)

   One Front Street

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

-

%

   55 Second Street

 

44.1

%

 

 

95.7

%

 

 

95.7

%

 

 

95.7

%

 

 

95.7

%

 

 

-

%

   111 Sutter Street

 

49.0

%

 

 

86.3

%

 

 

86.3

%

 

 

86.3

%

 

 

86.3

%

 

 

-

%

     Weighted average

 

 

 

 

 

97.2

%

 

 

97.2

%

 

 

97.4

%

 

 

97.4

%

 

 

(0.2

%)

     PGRE's share

 

 

 

 

 

97.4

%

 

 

97.4

%

 

 

97.5

%

 

 

97.5

%

 

 

(0.1

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Weighted average

 

 

 

 

 

96.1

%

 

 

96.1

%

 

 

96.2

%

 

 

96.2

%

 

 

(0.1

%)

     PGRE's share

 

 

 

 

 

96.0

%

 

 

96.0

%

 

 

96.0

%

 

 

96.0

%

 

 

-

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   1899 Pennsylvania Avenue

 

100.0

%

 

 

90.4

%

 

 

-

%

 

 

90.4

%

 

 

-

%

 

 

-

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Weighted average

 

 

 

 

 

96.1

%

 

 

96.1

%

 

 

96.1

%

 

 

96.2

%

 

 

(0.1

%)

     PGRE's share

 

 

 

 

 

95.9

%

 

 

96.0

%

 

 

95.9

%

 

 

96.0

%

 

 

-

%

 

(1)

See page 36 for our definition of this measure.

 

- 28 -


 

 

 

 

 

 

 

 

 

 

TOP TENANTS AND INDUSTRY DIVERSIFICATION

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

 

 

 

 

 

 

 

 

 

 

 

 

 

PGRE's Share of

 

 

 

 

 

 

 

 

 

Total

 

 

Total

 

 

 

 

 

 

Annualized Rent (1)

 

 

% of

 

 

 

 

 

 

 

Lease

 

Square Feet

 

 

Square Feet

 

 

% of Total

 

 

 

 

 

 

Per Square

 

 

Annualized

 

Top 10 Tenants:

Property

 

Expiration

 

Occupied

 

 

Occupied

 

 

Square Feet

 

 

Amount

 

 

Foot

 

 

Rent

 

As of March 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Barclays Capital, Inc.

1301 Avenue of the Americas

 

Dec-2020

 

 

497,418

 

 

 

497,418

 

 

 

5.3

%

 

$

33,163

 

 

$

66.67

 

 

 

4.7

%

 

Allianz Global Investors, LP

1633 Broadway

 

Jan-2031

 

 

320,911

 

 

 

320,911

 

 

 

3.4

%

 

 

29,315

 

 

 

91.35

 

 

 

4.2

%

 

Clifford Chance LLP

31 West 52nd Street

 

Jun-2024

 

 

328,992

 

 

 

328,992

 

 

 

3.5

%

 

 

29,173

 

 

 

88.67

 

 

 

4.2

%

 

Credit Agricole Corporate &

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Bank

1301 Avenue of the Americas

 

Feb-2023

 

 

312,679

 

 

 

312,679

 

 

 

3.3

%

 

 

27,285

 

 

 

87.26

 

 

 

3.9

%

 

Norton Rose Fulbright

1301 Avenue of the Americas

 

Sep-2034

(2)

 

320,325

 

(2)

 

320,325

 

(2)

 

3.4

%

 

 

27,004

 

 

 

84.30

 

 

 

3.9

%

 

First Republic Bank

One Front Street

 

Jun-2025

(3)

 

338,602

 

(3)

 

338,602

 

(3)

 

3.6

%

 

 

26,386

 

 

 

77.93

 

 

 

3.8

%

 

Morgan Stanley & Company

1633 Broadway

 

Mar-2032

 

 

260,829

 

 

 

260,829

 

 

 

2.8

%

 

 

19,974

 

 

 

76.58

 

 

 

2.8

%

 

WMG Acquisition Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Warner Music Group)

1633 Broadway

 

Jul-2029

 

 

296,344

 

 

 

296,344

 

 

 

3.2

%

 

 

19,492

 

 

 

65.77

 

 

 

2.8

%

 

Showtime Networks, Inc.

1633 Broadway

 

Jan-2026

 

 

261,196

 

 

 

261,196

 

 

 

2.8

%

 

 

16,773

 

 

 

64.22

 

 

 

2.4

%

 

Kasowitz Benson Torres &

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Friedman, LLP

1633 Broadway

 

Mar-2037

 

 

203,394

 

 

 

203,394

 

 

 

2.2

%

 

 

15,024

 

 

 

73.87

 

 

 

2.1

%

 

 

 

 

 

 

 

PGRE's Share of

 

 

 

 

 

 

 

 

 

 

 

 

 

Square Feet

 

 

% of Occupied

 

 

Annualized

 

 

% of

 

 

 

 

 

 

 

Industry Diversification:

Occupied

 

 

Square Feet

 

 

Rent (1)

 

 

Annualized Rent

 

 

 

 

 

 

 

As of March 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Legal Services

 

1,905,207

 

 

 

21.6

%

 

$

157,140

 

 

 

22.4

%

 

 

 

 

 

 

 

Financial Services - Commercial and Investment Banking

 

1,865,373

 

 

 

21.1

%

 

 

141,446

 

 

 

20.2

%

 

 

 

 

 

 

 

Technology and Media

 

1,798,051

 

 

 

20.4

%

 

 

134,335

 

 

 

19.2

%

 

 

 

 

 

 

 

Financial Services, all others

 

1,295,255

 

 

 

14.7

%

 

 

115,092

 

 

 

16.4

%

 

 

 

 

 

 

 

Insurance

 

480,324

 

 

 

5.4

%

 

 

42,352

 

 

 

6.0

%

 

 

 

 

 

 

 

Travel & Leisure

 

203,575

 

 

 

2.3

%

 

 

14,338

 

 

 

2.0

%

 

 

 

 

 

 

 

Retail

 

133,412

 

 

 

1.5

%

 

 

14,049

 

 

 

2.0

%

 

 

 

 

 

 

 

Real Estate

 

171,247

 

 

 

1.9

%

 

 

13,909

 

 

 

2.0

%

 

 

 

 

 

 

 

Consumer Products

 

128,715

 

 

 

1.5

%

 

 

9,073

 

 

 

1.3

%

 

 

 

 

 

 

 

Other

 

847,643

 

 

 

9.6

%

 

 

59,216

 

 

 

8.5

%

 

 

 

 

 

 

 

(1)

See page 36 for our definition of this measure.

(2)

116,462 of the square feet leased expires on March 31, 2032.

(3)

76,999 and 10,952 of the square feet leased expire on December 31, 2029 and December 31, 2030, respectively.

- 29 -


 

 

 

 

 

 

 

LEASING ACTIVITY (1)

(unaudited)

 

 

 

 

 

 

 

Total

 

 

New York

 

 

San Francisco

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total square feet leased

 

 

206,784

 

 

 

48,872

 

 

 

157,912

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PGRE's share of total square feet leased:

 

 

126,068

 

 

 

44,604

 

 

 

81,464

 

 

 

     Initial rent (2)

 

$

91.59

 

 

$

73.24

 

 

$

101.64

 

 

 

     Weighted average lease term (in years)

 

 

4.8

 

 

 

4.0

 

 

 

5.2

 

 

 

     Tenant improvements and leasing commissions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

          Per square foot

 

$

33.36

 

 

$

32.23

 

 

$

33.98

 

 

 

          Per square foot per annum

 

$

6.99

 

 

$

7.97

 

 

$

6.56

 

 

 

          Percentage of initial rent

 

 

7.6

%

 

 

10.9

%

 

 

6.5

%

 

 

      Rent concessions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

          Average free rent period (in months)

 

 

2.0

 

 

 

1.1

 

 

 

2.5

 

 

 

          Average free rent period per annum (in months)

 

 

0.4

 

 

 

0.3

 

 

 

0.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Second generation space: (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

         Square feet

 

 

104,308

 

 

 

36,322

 

 

 

67,986

 

 

 

         Cash basis:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                 Initial rent (2)

 

$

90.17

 

 

$

65.16

 

 

$

103.53

 

 

 

                 Prior escalated rent (2)

 

$

68.65

 

 

$

62.72

 

 

$

71.82

 

 

 

                 Percentage increase

 

 

31.3

%

 

 

3.9

%

 

 

44.2

%

 

 

         GAAP basis:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                 Straight-line rent (2)

 

$

91.14

 

 

$

65.16

 

 

$

105.02

 

 

 

                 Prior straight-line rent (2)

 

$

65.95

 

 

$

59.93

 

 

$

69.17

 

 

 

                 Percentage increase

 

 

38.2

%

 

 

8.7

%

 

 

51.8

%

 

 

 

(1)

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

(2)

See page 36 for our definition of this measure.

- 30 -


 

 

 

 

 

 

 

 

 

 

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

 

 

26,433

 

 

 

18,075

 

 

$

2,224

 

 

$

82.85

 

 

 

0.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2Q 2020

 

 

17,219

 

 

 

11,887

 

 

 

893

 

 

 

73.86

 

 

 

0.2

%

 

3Q 2020

 

 

86,442

 

 

 

62,022

 

 

 

4,562

 

 

 

73.56

 

 

 

0.6

%

 

4Q 2020

 

 

61,214

 

 

 

37,927

 

 

 

3,087

 

 

 

82.16

 

 

 

0.4

%

 

Total 2020

 

 

164,875

 

 

 

111,836

 

 

 

8,542

 

 

 

76.47

 

 

 

1.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1Q 2021

 

 

783,010

 

 

 

689,865

 

 

 

49,543

 

 

 

72.17

 

 

 

6.9

%

 

Remaining 2021

 

 

361,586

 

 

 

318,996

 

 

 

23,217

 

 

 

78.39

 

 

 

3.2

%

 

Total 2021

 

 

1,144,596

 

 

 

1,008,861

 

 

 

72,760

 

 

 

74.00

 

 

 

10.1

%

 

2022

 

 

2,228,622

 

 

 

444,736

 

 

 

30,902

 

 

 

80.72

 

 

 

4.3

%

 

2023

 

 

1,051,235

 

 

 

896,247

 

 

 

73,038

 

 

 

83.90

 

 

 

10.1

%

 

2024

 

 

809,461

 

 

 

726,757

 

 

 

60,685

 

 

 

83.57

 

 

 

8.4

%

 

2025

 

 

1,403,249

 

 

 

887,269

 

 

 

71,616

 

 

 

80.73

 

 

 

9.9

%

 

2026

 

 

1,316,582

 

 

 

962,155

 

 

 

74,431

 

 

 

74.99

 

 

 

10.3

%

 

2027

 

 

268,222

 

 

 

176,245

 

 

 

15,104

 

 

 

85.68

 

 

 

2.1

%

 

2028

 

 

255,681

 

 

 

218,153

 

 

 

17,643

 

 

 

81.38

 

 

 

2.4

%

 

2029

 

 

550,781

 

 

 

531,137

 

 

 

40,166

 

 

 

76.05

 

 

 

5.6

%

 

Thereafter

 

 

3,347,914

 

 

 

3,031,835

 

 

 

253,569

 

 

 

83.19

 

 

 

35.3

%

 

(1)

See page 36 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.

- 31 -


 

 

 

 

 

 

 

LEASE EXPIRATIONS – NEW YORK

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

 

 

 

 

Total

 

 

PGRE's Share of

 

Year of

 

Square Feet

 

 

Square Feet

 

 

Annualized Rent (1)

 

 

%  of

 

Lease Expiration (2)

 

of Expiring Leases

 

 

of Expiring Leases

 

 

Amount

 

 

Per Square Foot (3)

 

 

Annualized Rent

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Month to Month

 

 

4,652

 

 

 

4,652

 

 

$

524

 

 

$

67.90

 

 

 

0.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2Q 2020

 

 

3,627

 

 

 

3,584

 

 

 

252

 

 

 

68.00

 

 

 

0.1

%

 

3Q 2020

 

 

76,287

 

 

 

55,218

 

 

 

3,988

 

 

 

72.35

 

 

 

0.8

%

 

4Q 2020

 

 

13,150

 

 

 

8,283

 

 

 

644

 

 

 

80.24

 

 

 

0.1

%

 

Total 2020

 

 

93,064

 

 

 

67,085

 

 

 

4,884

 

 

 

73.00

 

 

 

1.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1Q 2021

 

 

604,008

 

 

 

593,949

 

 

 

41,420

 

 

 

70.20

 

 

 

8.2

%

 

Remaining 2021

 

 

261,928

 

 

 

254,258

 

 

 

18,253

 

 

 

78.77

 

 

 

3.6

%

 

Total 2021

 

 

865,936

 

 

 

848,207

 

 

 

59,673

 

 

 

72.53

 

 

 

11.8

%

 

2022

 

 

1,799,051

 

 

 

239,563

 

 

 

13,208

 

 

 

72.25

 

 

 

2.6

%

 

2023

 

 

552,946

 

 

 

528,899

 

 

 

41,124

 

 

 

81.77

 

 

 

8.1

%

 

2024

 

 

608,942

 

 

 

597,225

 

 

 

49,499

 

 

 

82.99

 

 

 

9.8

%

 

2025

 

 

296,470

 

 

 

251,421

 

 

 

21,869

 

 

 

86.98

 

 

 

4.3

%

 

2026

 

 

655,139

 

 

 

632,151

 

 

 

48,534

 

 

 

73.04

 

 

 

9.6

%

 

2027

 

 

85,378

 

 

 

85,378

 

 

 

7,337

 

 

 

85.93

 

 

 

1.5

%

 

2028

 

 

147,554

 

 

 

136,133

 

 

 

11,120

 

 

 

82.29

 

 

 

2.2

%

 

2029

 

 

517,960

 

 

 

514,366

 

 

 

38,890

 

 

 

76.04

 

 

 

7.7

%

 

Thereafter

 

 

2,596,881

 

 

 

2,570,405

 

 

 

208,806

 

 

 

80.70

 

 

 

41.3

%

 

(1)

See page 36 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.

- 32 -


 

 

 

 

 

 

 

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

 

 

20,706

 

 

 

12,348

 

 

$

1,700

 

 

$

88.97

 

 

 

0.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2Q 2020

 

 

13,592

 

 

 

8,303

 

 

 

641

 

 

 

76.46

 

 

 

0.3

%

 

3Q 2020

 

 

10,155

 

 

 

6,804

 

 

 

574

 

 

 

83.38

 

 

 

0.3

%

 

4Q 2020

 

 

48,064

 

 

 

29,644

 

 

 

2,443

 

 

 

82.63

 

 

 

1.2

%

 

Total 2020

 

 

71,811

 

 

 

44,751

 

 

 

3,658

 

 

 

81.64

 

 

 

1.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1Q 2021

 

 

174,685

 

 

 

91,599

 

 

 

7,757

 

 

 

84.32

 

 

 

3.9

%

 

Remaining 2021

 

 

99,658

 

 

 

64,738

 

 

 

4,964

 

 

 

77.09

 

 

 

2.5

%

 

Total 2021

 

 

274,343

 

 

 

156,337

 

 

 

12,721

 

 

 

81.34

 

 

 

6.4

%

 

2022

 

 

425,840

 

 

 

201,442

 

 

 

17,485

 

 

 

86.66

 

 

 

8.7

%

 

2023

 

 

363,511

 

 

 

232,570

 

 

 

19,652

 

 

 

84.70

 

 

 

9.8

%

 

2024

 

 

200,519

 

 

 

129,532

 

 

 

11,186

 

 

 

86.23

 

 

 

5.6

%

 

2025

 

 

1,106,779

 

 

 

635,848

 

 

 

49,747

 

 

 

78.25

 

 

 

24.9

%

 

2026

 

 

633,197

 

 

 

301,758

 

 

 

23,703

 

 

 

78.76

 

 

 

11.8

%

 

2027

 

 

182,844

 

 

 

90,867

 

 

 

7,767

 

 

 

85.44

 

 

 

3.9

%

 

2028

 

 

108,127

 

 

 

82,020

 

 

 

6,523

 

 

 

79.86

 

 

 

3.3

%

 

2029

 

 

32,821

 

 

 

16,771

 

 

 

1,276

 

 

 

76.10

 

 

 

0.6

%

 

Thereafter

 

 

750,510

 

 

 

460,907

 

 

 

44,743

 

 

 

97.08

 

 

 

22.4

%

 

(1)

See page 36 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.


- 33 -


 

 

 

LEASE EXPIRATIONS – Other (1)

(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 (2)

 

 

%  of

 

Lease Expiration (3)

 

of Expiring Leases

 

 

of Expiring Leases

 

 

Amount

 

 

Per Square Foot (4)

 

 

Annualized Rent

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Month to Month

 

 

1,075

 

 

 

1,075

 

 

$

-

 

 

$

-

 

 

 

-

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2Q 2020

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

%

 

3Q 2020

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

%

 

4Q 2020

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

%

 

Total 2020

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1Q 2021

 

 

4,317

 

 

 

4,317

 

 

 

366

 

 

 

84.74

 

 

 

2.4

%

 

Remaining 2021

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

%

 

Total 2021

 

 

4,317

 

 

 

4,317

 

 

 

366

 

 

 

84.74

 

 

 

2.4

%

 

2022

 

 

3,731

 

 

 

3,731

 

 

 

209

 

 

 

55.96

 

 

 

1.4

%

 

2023

 

 

134,778

 

 

 

134,778

 

 

 

12,262

 

 

 

89.62

 

 

 

81.5

%

 

2024

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

%

 

2025

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

%

 

2026

 

 

28,246

 

 

 

28,246

 

 

 

2,194

 

 

 

77.66

 

 

 

14.6

%

 

2027

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

%

 

2028

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

2029

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

%

 

Thereafter

 

 

523

 

 

 

523

 

 

 

20

 

 

 

30.00

 

 

 

0.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Represents lease expirations of 1899 Pennsylvania Avenue, which is classified as discontinued operations.

(2)

See page 36 for our definition of this measure.

(3)

Leases that expire on the last day of the quarter are treated as occupied and are reflected as expiring space in the following quarter.

(4)

Represents office and retail space only.

 

 

 

 

 


- 34 -


 

 

 

 

 

 

 

 

 

 

CASH BASIS CAPITAL EXPENDITURES

(unaudited and in thousands)

 

 

 

 

Three Months Ended March 31, 2020

 

 

 

 

Total

 

 

New York

 

 

San Francisco

 

 

Other

 

Capital Expenditures: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenditures to maintain assets

 

$

4,709

 

 

$

3,738

 

 

$

936

 

 

$

35

 

Second generation tenant improvements

 

 

19,726

 

 

 

16,243

 

 

 

3,483

 

 

 

-

 

Second generation leasing commissions

 

 

4,207

 

 

 

1,220

 

 

 

2,987

 

 

 

-

 

First generation leasing costs and capital expenditures

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total Capital Expenditures

 

$

28,642

 

 

$

21,201

 

 

$

7,406

 

 

$

35

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redevelopment Expenditures: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

One Market Plaza

 

$

2,044

 

 

$

-

 

 

$

2,044

 

 

$

-

 

Other

 

 

2,958

 

 

 

2,171

 

 

 

787

 

 

 

-

 

Total Redevelopment Expenditures

 

$

5,002

 

 

$

2,171

 

 

$

2,831

 

 

$

-

 

 

 

 

 

 

Three Months Ended March 31, 2019

 

 

 

 

Total

 

 

New York

 

 

San Francisco

 

 

Other

 

Capital Expenditures: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenditures to maintain assets

 

$

3,535

 

 

$

2,312

 

 

$

1,022

 

 

$

201

 

Second generation tenant improvements

 

 

14,196

 

 

 

11,568

 

 

 

2,557

 

 

 

71

 

Second generation leasing commissions

 

 

1,310

 

 

 

1,026

 

 

 

284

 

 

 

-

 

First generation leasing costs and capital expenditures

 

 

847

 

 

 

-

 

 

 

847

 

 

 

-

 

Total Capital Expenditures

 

$

19,888

 

 

$

14,906

 

 

$

4,710

 

 

$

272

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redevelopment Expenditures: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31 West 52nd Street (Lobby Renovation)

 

$

3,148

 

 

$

3,148

 

 

$

-

 

 

$

-

 

One Market Plaza

 

 

1,689

 

 

 

-

 

 

 

1,689

 

 

 

-

 

Other

 

 

4,186

 

 

 

2,420

 

 

 

1,766

 

 

 

-

 

Total Redevelopment Expenditures

 

$

9,023

 

 

$

5,568

 

 

$

3,455

 

 

$

-

 

 

(1)

See page 36 for our definition of this measure.

- 35 -


 

 

 

 

 

 

 

 

 

 

DEFINITIONS

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

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

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

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

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

 

- 36 -


 

 

 

 

 

 

 

DEFINITIONS - CONTINUED

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

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

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

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

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

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

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

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

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

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

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

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

 

- 37 -

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Document and Entity Information
Apr. 29, 2020
Cover [Abstract]  
Entity Address, State or Province NY
Amendment Flag false
Entity Central Index Key 0001605607
Document Type 8-K
Document Period End Date Apr. 29, 2020
Entity Registrant Name Paramount Group, Inc.
Entity Incorporation State Country Code MD
Entity File Number 001-36746
Entity Tax Identification Number 32-0439307
Entity Address, Address Line One 1633 Broadway
Entity Address, Address Line Two Suite 1801
Entity Address, City or Town New York
Entity Address, Postal Zip Code 10019
City Area Code (212)
Local Phone Number 237-3100
Written Communications false
Soliciting Material false
Pre Commencement Tender Offer false
Pre Commencement Issuer Tender Offer false
Security 12b Title Common stock of Paramount Group, Inc., $0.01 par value per share
Trading Symbol PGRE
Security Exchange Name NYSE
Entity Emerging Growth Company false
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