1.	Organization and Business

As used in these consolidated financial statements, unless otherwise indicated, all references to “we,” “us,” “our,” the “Company,” and “Paramount” refer to Paramount Group, Inc., a Maryland corporation, and its consolidated subsidiaries, including Paramount Group Operating Partnership LP (the “Operating Partnership”), a Delaware limited partnership. We are a fully-integrated real estate investment trust (“REIT”) focused on owning, operating, managing, acquiring and redeveloping high-quality, Class A office properties in select central business district submarkets of New York City and San Francisco. As of December 31, 2020, our portfolio consisted of 13 Class A properties aggregating 12.9 million square feet. We conduct our business through, and substantially all of our interests in properties and investments are held by, the Operating Partnership. We are the sole general partner of, and owned approximately 91.3% of, the Operating Partnership as of December 31, 2020.

In March 2020, the World Health Organization declared coronavirus 2019 (“COVID-19”) a global pandemic. The outbreak of COVID-19 has caused, and continues to cause, severe disruptions in the global economy, and has adversely impacted businesses and financial markets, including that of the United States. Specifically, New York and San Francisco, the markets in which we operate and where a majority of our assets are located, have reacted by instituting quarantines, “pause” orders, “shelter-in-place” rules, restrictions on travel, and restriction on the types of business that could operate. These measures have had and continue to have a significant adverse impact on businesses.

While our buildings have remained open throughout the pandemic, a majority of our tenants have worked remotely. The health and safety of our employees and tenants have been our highest priority and we have adopted a number of initiatives focused on ensuring a healthy and safe environment for all building occupants, including but not limited to the following:

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Adding signage, physical barriers and floor markings in common areas designed to promote social distancing;

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Increasing cleaning and disinfecting protocols and the use of EPA registered cleaning products;

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Reducing physical touch points in common areas;

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Improving indoor air quality by installing the highest rated minimum efficiency reporting value (“MERV”) filters and additional air purifiers in lobby areas;

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Installing thermal scanners in lobby areas to screen for temperature checks; and

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Developing efficient communication channels to communicate important health and safety information to employees and tenants.

Since the outbreak of COVID-19, we have received several requests from tenants seeking “short-term” rent relief and have entered into agreements with select tenants to abate and/or defer a portion of their 2020 rental obligations. We have closely monitored our rent collections and have evaluated and continue to evaluate tenant requests on a case-by-case basis. From April through December 31, 2020, our portfolio-wide rent collections were 97.2%, comprised of 98.5% from office tenants (which account for approximately 96.5% of our annualized rents) and 61.6% from non-office tenants (which account for the remaining 3.5% of our annualized rents). In connection with our evaluation of the probability of rent collections of future lease receivables, we recorded $33,205,000 of non-cash write-offs, primarily for straight-line rent receivables, and $2,051,000 of reserves for uncollectible accounts receivable, during the year ended December 31, 2020.

On December 11, 2020 and December 18, 2020, the U.S. Food and Drug Administration issued emergency use authorizations of two vaccines for the prevention of COVID-19. While there are other vaccines currently under development, multiple variants of the virus that cause COVID-19 are also currently present globally. The rapid development and fluidity of this situation precludes us at this time from making any predictions as to the ultimate impact COVID-19 may have on our future financial condition, results of operations and cash flows.