Paramount Announces Fourth Quarter 2020 Results
Paramount Group, Inc. (PGRE) reported a net loss of $14.8 million ($0.07/share) for Q4 2020, an improvement from $50.1 million ($0.22/share) in Q4 2019. The Core Funds from Operations (Core FFO) decreased to $52.5 million ($0.24/share) from $58.3 million ($0.26/share) year-on-year. The company's Same Store Cash NOI rose 2.2% to $93.6 million, while Same Store NOI fell 0.9%. They leased 87,283 square feet, achieving a 96.7% rent collection rate. Estimated Core FFO for 2021 is projected at $0.82 to $0.88/share. The company ended Q4 with $1.47 billion in liquidity.
- Improved net loss to $14.8 million for Q4 2020 from $50.1 million in Q4 2019.
- Core FFO remained strong at $52.5 million despite a decrease from $58.3 million in Q4 2019.
- Same Store Cash NOI increased by 2.2% to $93.6 million.
- High rent collection rate of 96.7% in Q4 2020.
- Ended Q4 with substantial liquidity of $1.47 billion.
- Core FFO decreased from $58.3 million in Q4 2019 to $52.5 million in Q4 2020.
- Same Store NOI decreased by 0.9% compared to the prior year.
- Projected net loss for 2021 estimated between $0.16 and $0.10 per share.
Paramount Group, Inc. (NYSE: PGRE) (“Paramount” or the “Company”) filed its Annual Report on Form 10-K for the year ended December 31, 2020 today and reported results for the fourth quarter ended December 31, 2020.
Fourth Quarter Highlights:
Results of Operations:
-
Reported net loss attributable to common stockholders of
$14.8 million , or$0.07 per diluted share, for the quarter ended December 31, 2020, compared to a net loss attributable to common stockholders of$50.1 million , or$0.22 per diluted share, for the quarter ended December 31, 2019. Net loss attributable to common stockholders for the quarter ended December 31, 2020 includes (i) an$11.7 million , or$0.05 per diluted share, loss on sale of real estate related to discontinued operations and (ii) non-cash write-offs aggregating$5.5 million , or$0.03 per diluted share, for straight-line rent receivables. Net loss attributable to common stockholders for the quarter ended December 31, 2019 includes (i) a$37.9 million , or$0.17 per diluted share, real estate impairment loss related to discontinued operations, (ii) a$10.8 million , or$0.05 per diluted share, loss on early extinguishment of debt and (iii)$7.4 million , or$0.03 per diluted share, expense from the non-cash write-off of deferred financing costs. -
Reported Core Funds from Operations (“Core FFO”) attributable to common stockholders of
$52.5 million , or$0.24 per diluted share, for the quarter ended December 31, 2020, compared to$58.3 million , or$0.26 per diluted share, for the quarter ended December 31, 2019. Core FFO attributable to common stockholders for the quarter ended December 31, 2020 includes non-cash write-offs aggregating$5.5 million , or$0.03 per diluted share, for straight-line rent receivables. -
Reported a
2.2% increase in Same Store Cash Net Operating Income (“NOI”) and a0.9% decrease in Same Store NOI in the quarter ended December 31, 2020, compared to the same period in the prior year. -
Leased 87,283 square feet, of which the Company’s share was 62,461 square feet that was leased at a weighted average initial rent of
$90.81 per square foot. Of the square footage leased, 54,036 square feet represented second generation space, for which the Company achieved a positive mark-to-market of2.3% on a GAAP basis and a negative1.3% on a cash basis. -
Reported portfolio-wide rent collections of
96.7% in the fourth quarter, including98.0% from office tenants and60.3% from “non-office” tenants.
Transactions and Capital Markets Activity:
-
Completed the sale of 1899 Pennsylvania Avenue, a 191,000 square foot trophy office building located in Washington, D.C., on December 24, 2020 for
$103.0 million . -
Repurchased 1,723,103 common shares at a weighted average price of
$6.66 per share, or$11.5 million in the aggregate. -
Ended the quarter with
$1.47 billion in liquidity, comprised of$465.3 million of cash and restricted cash and$1.0 billion of borrowing capacity under its revolving credit facility. -
Declared a fourth quarter cash dividend of
$0.07 per common share on December 15, 2020, which was paid on January 15, 2021.
Financial Results
Quarter Ended December 31, 2020
Net loss attributable to common stockholders was
Funds from Operations (“FFO”) attributable to common stockholders was
Core FFO attributable to common stockholders, which excludes the impact of the non-core items listed on page 11, was
Year Ended December 31, 2020
Net loss attributable to common stockholders was
FFO attributable to common stockholders was
Core FFO attributable to common stockholders, which excludes the impact of the non-core items listed on page 11, was
Portfolio Operations
Quarter Ended December 31, 2020
Same Store Cash NOI increased by
During the quarter ended December 31, 2020, the Company leased 87,283 square feet, of which the Company’s share was 62,461 square feet that was leased at a weighted average initial rent of
Year Ended December 31, 2020
Same Store Cash NOI increased by
During the year ended December 31, 2020, the Company leased 699,159 square feet, of which the Company’s share was 413,148 square feet that was leased at a weighted average initial rent of
The Company’s share of total square feet leased for the year ended December 31, 2020 and the related statistics disclosed above exclude the impact of 17,925 square feet of retail space at 712 Fifth Avenue, that was leased to Harry Winston for a 16-year term. The lease has a weighted average initial rent of
Guidance
The Company is providing Estimated Core FFO Guidance for the full year of 2021, which is reconciled below to estimated net loss attributable to common stockholders per diluted share in accordance with GAAP. The Company estimates that net loss attributable to common stockholders will be between
The Company estimates 2021 Core FFO to be between
|
|
|
|
|
|
|
Full Year 2021 |
|
|||||
(Amounts per diluted share) |
Low |
|
|
High |
|
||||||||
Estimated net loss attributable to common stockholders |
$ |
(0.16 |
) |
|
$ |
(0.10 |
) |
||||||
Pro rata share of real estate depreciation and amortization, including |
|
|
|
|
|
|
|
||||||
the Company's share of unconsolidated joint ventures |
|
0.98 |
|
|
|
0.98 |
|
||||||
Estimated Core FFO |
$ |
0.82 |
|
|
$ |
0.88 |
|
||||||
Except as described above, these estimates reflect management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels and the earnings impact of the events referenced in this release and otherwise to be referenced during the conference call referred to on page 8. These estimates do not include the impact on operating results from possible future property acquisitions or dispositions, capital markets activity or realized and unrealized gains or losses on real estate fund investments. The estimates set forth above may be subject to fluctuations as a result of several factors, including the negative impact of the COVID-19 global pandemic, straight-line rent adjustments and the amortization of above and below-market leases. There can be no assurance that the Company’s actual results will not differ materially from the estimates set forth above.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. You can identify these statements by our use of the words “assumes,” “believes,” “estimates,” “expects,” “guidance,” “intends,” “plans,” “projects” and similar expressions that do not relate to historical matters. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the Company’s control and could materially affect actual results, performance or achievements. These factors include, without limitation, the negative impact of the COVID-19 global pandemic 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.
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 December 31, 2020, which is available on our website.
Investor Conference Call and Webcast
The Company will host a conference call and audio webcast on Thursday, February 11, 2021 at 10:00 a.m. Eastern Time (ET), during which management will discuss the fourth quarter results and provide commentary on business performance. A question and answer session with analysts and investors will follow the prepared remarks.
The conference call can be accessed by dialing 877-407-0789 (domestic) or 201-689-8562 (international). An audio replay of the conference call will be available from 1:00 p.m. ET on February 11, 2021 through February 18, 2021 and can be accessed by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the passcode 13715460.
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.
Paramount Group, Inc. |
||||||||||||
Consolidated Balance Sheets |
||||||||||||
(Unaudited and in thousands) |
||||||||||||
Assets: |
|
December 31, 2020 |
|
|
December 31, 2019 |
|
||||||
Real estate, at cost |
|
|
|
|
|
|
|
|
||||
Land |
|
$ |
1,966,237 |
|
|
$ |
1,966,237 |
|
||||
Buildings and improvements |
|
|
5,997,078 |
|
|
|
5,923,648 |
|
||||
|
|
|
7,963,315 |
|
|
|
7,889,885 |
|
||||
Accumulated depreciation and amortization |
|
|
(966,697 |
) |
|
|
(790,216 |
) |
||||
Real estate, net |
|
|
6,996,618 |
|
|
|
7,099,669 |
|
||||
Cash and cash equivalents |
|
|
434,530 |
|
|
|
306,215 |
|
||||
Restricted cash |
|
|
30,794 |
|
|
|
25,272 |
|
||||
Investments in unconsolidated joint ventures |
|
|
412,724 |
|
|
|
449,180 |
|
||||
Investments in unconsolidated real estate funds |
|
|
12,917 |
|
|
|
10,317 |
|
||||
Accounts and other receivables |
|
|
17,502 |
|
|
|
19,231 |
|
||||
Due from affiliates |
|
|
- |
|
|
|
36,918 |
|
||||
Deferred rent receivable |
|
|
330,239 |
|
|
|
301,588 |
|
||||
Deferred charges, net |
|
|
116,278 |
|
|
|
126,367 |
|
||||
Intangible assets, net |
|
|
153,519 |
|
|
|
203,169 |
|
||||
Assets related to discontinued operations |
|
|
- |
|
|
|
104,836 |
|
||||
Other assets |
|
|
48,976 |
|
|
|
51,373 |
|
||||
Total assets |
|
$ |
8,554,097 |
|
|
$ |
8,734,135 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
||||
Notes and mortgages payable, net |
|
$ |
3,800,739 |
|
|
$ |
3,783,851 |
|
||||
Revolving credit facility |
|
|
- |
|
|
|
36,918 |
|
||||
Accounts payable and accrued expenses |
|
|
101,901 |
|
|
|
117,356 |
|
||||
Dividends and distributions payable |
|
|
16,796 |
|
|
|
25,255 |
|
||||
Intangible liabilities, net |
|
|
55,996 |
|
|
|
73,789 |
|
||||
Other liabilities |
|
|
62,931 |
|
|
|
66,004 |
|
||||
Total liabilities |
|
|
4,038,363 |
|
|
|
4,103,173 |
|
||||
Equity: |
|
|
|
|
|
|
|
|
||||
Paramount Group, Inc. equity |
|
|
3,653,177 |
|
|
|
3,785,730 |
|
||||
Noncontrolling interests in: |
|
|
|
|
|
|
|
|
||||
Consolidated joint ventures |
|
|
437,161 |
|
|
|
360,778 |
|
||||
Consolidated real estate fund |
|
|
79,017 |
|
|
|
72,396 |
|
||||
Operating Partnership |
|
|
346,379 |
|
|
|
412,058 |
|
||||
Total equity |
|
|
4,515,734 |
|
|
|
4,630,962 |
|
||||
Total liabilities and equity |
|
$ |
8,554,097 |
|
|
$ |
8,734,135 |
|
||||
Paramount Group, Inc. |
|||||||||||||||||||
Consolidated Statements of Income |
|||||||||||||||||||
(Unaudited and in thousands, except share and per share amounts) |
|||||||||||||||||||
|
|
|
|
|
For the Three Months Ended |
|
|
For the Year Ended |
|
||||||||||
|
|
|
|
|
December 31, |
|
|
December 31, |
|
||||||||||
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Rental revenue |
|
$ |
174,181 |
|
|
$ |
179,008 |
|
|
$ |
679,015 |
|
|
$ |
709,508 |
|
|||
Fee and other income |
|
|
8,177 |
|
|
|
7,761 |
|
|
|
35,222 |
|
|
|
34,246 |
|
|||
Total revenues |
|
|
182,358 |
|
|
|
186,769 |
|
|
|
714,237 |
|
|
|
743,754 |
|
|||
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Operating |
|
|
68,395 |
|
|
|
65,659 |
|
|
|
267,587 |
|
|
|
264,702 |
|
|||
Depreciation and amortization |
|
|
59,168 |
|
|
|
58,419 |
|
|
|
235,200 |
|
|
|
240,104 |
|
|||
General and administrative |
|
|
17,962 |
|
|
|
17,099 |
|
|
|
64,917 |
|
|
|
68,556 |
|
|||
Transaction related costs |
|
|
554 |
|
|
|
295 |
|
|
|
1,096 |
|
|
|
1,999 |
|
|||
Total expenses |
|
|
146,079 |
|
|
|
141,472 |
|
|
|
568,800 |
|
|
|
575,361 |
|
|||
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Loss from unconsolidated joint ventures |
|
|
(4,175 |
) |
|
|
(1,891 |
) |
|
|
(18,619 |
) |
|
|
(4,706 |
) |
|||
Income (loss) from unconsolidated real estate funds |
|
|
187 |
|
|
|
(614 |
) |
|
|
272 |
|
|
|
(343 |
) |
|||
Interest and other income, net |
|
|
2,130 |
|
|
|
2,139 |
|
|
|
4,490 |
|
|
|
9,844 |
|
|||
Interest and debt expense |
|
|
(35,788 |
) |
|
|
(45,217 |
) |
|
|
(144,208 |
) |
|
|
(156,679 |
) |
|||
Loss on early extinguishment of debt |
|
|
- |
|
|
|
(11,989 |
) |
|
|
- |
|
|
|
(11,989 |
) |
|||
(Loss) income from continuing operations, before income taxes |
|
|
(1,367 |
) |
|
|
(12,275 |
) |
|
|
(12,628 |
) |
|
|
4,520 |
|
|||
Income tax (expense) benefit |
|
|
(358 |
) |
|
|
511 |
|
|
|
(1,493 |
) |
|
|
(312 |
) |
|||
(Loss) income from continuing operations, net |
|
|
(1,725 |
) |
|
|
(11,764 |
) |
|
|
(14,121 |
) |
|
|
4,208 |
|
|||
Loss from discontinued operations, net |
|
|
(10,890 |
) |
|
|
(41,013 |
) |
|
|
(5,075 |
) |
|
|
(33,811 |
) |
|||
Net loss |
|
|
(12,615 |
) |
|
|
(52,777 |
) |
|
|
(19,196 |
) |
|
|
(29,603 |
) |
|||
Less net (income) loss attributable to noncontrolling interests in: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Consolidated joint ventures |
|
|
(3,772 |
) |
|
|
(2,769 |
) |
|
|
(9,257 |
) |
|
|
(11,022 |
) |
|||
Consolidated real estate fund |
|
|
159 |
|
|
|
(57 |
) |
|
|
1,450 |
|
|
|
(313 |
) |
|||
Operating Partnership |
|
|
1,404 |
|
|
|
5,458 |
|
|
|
2,299 |
|
|
|
4,039 |
|
|||
Net loss attributable to common stockholders |
|
$ |
(14,824 |
) |
|
$ |
(50,145 |
) |
|
$ |
(24,704 |
) |
|
$ |
(36,899 |
) |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Loss per Common Share - Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Loss from continuing operations, net |
|
$ |
(0.02 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.03 |
) |
|||
Loss from discontinued operations, net |
|
|
(0.05 |
) |
|
|
(0.16 |
) |
|
|
(0.02 |
) |
|
|
(0.13 |
) |
|||
Net loss per common share |
|
$ |
(0.07 |
) |
|
$ |
(0.22 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.16 |
) |
|||
Weighted average common shares outstanding |
|
|
218,989,711 |
|
|
|
227,276,459 |
|
|
|
222,436,170 |
|
|
|
231,538,065 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per Common Share - Diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Loss from continuing operations, net |
|
$ |
(0.02 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.03 |
) |
|||
Loss from discontinued operations, net |
|
|
(0.05 |
) |
|
|
(0.16 |
) |
|
|
(0.02 |
) |
|
|
(0.13 |
) |
|||
Net loss per common share |
|
$ |
(0.07 |
) |
|
$ |
(0.22 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.16 |
) |
|||
Weighted average common shares outstanding |
|
|
218,989,711 |
|
|
|
227,276,459 |
|
|
|
222,436,170 |
|
|
|
231,538,065 |
|
|||
Paramount Group, Inc. |
|||||||||||||||||
Reconciliation of Net Loss to FFO and Core FFO |
|||||||||||||||||
(Unaudited and in thousands, except share and per share amounts) |
|||||||||||||||||
|
|
|
For the Three Months Ended |
|
|
For the Year Ended |
|
||||||||||
|
|
|
December 31, |
|
|
December 31, |
|
||||||||||
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
||||
Reconciliation of Net Loss to FFO and Core FFO: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Net loss |
$ |
(12,615 |
) |
|
$ |
(52,777 |
) |
|
$ |
(19,196 |
) |
|
$ |
(29,603 |
) |
||
Real estate depreciation and amortization (including |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
our share of unconsolidated joint ventures) |
|
70,700 |
|
|
|
65,368 |
|
|
|
283,317 |
|
|
|
257,876 |
|
||
Adjustments related to discontinued operations (including |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
impairments and gain or loss on sale of real estate) |
|
12,766 |
|
|
|
43,156 |
|
|
|
13,456 |
|
|
|
49,103 |
|
||
FFO |
|
70,851 |
|
|
|
55,747 |
|
|
|
277,577 |
|
|
|
277,376 |
|
||
Less FFO attributable to noncontrolling interests in: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Consolidated joint ventures |
|
(13,167 |
) |
|
|
(11,360 |
) |
|
|
(43,542 |
) |
|
|
(46,527 |
) |
||
Consolidated real estate fund |
|
159 |
|
|
|
(57 |
) |
|
|
1,450 |
|
|
|
(313 |
) |
||
FFO attributable to Paramount Group Operating Partnership |
|
57,843 |
|
|
|
44,330 |
|
|
|
235,485 |
|
|
|
230,536 |
|
||
Less FFO attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
in Operating Partnership |
|
(5,004 |
) |
|
|
(4,352 |
) |
|
|
(20,664 |
) |
|
|
(22,349 |
) |
||
FFO attributable to common stockholders |
$ |
52,839 |
|
|
$ |
39,978 |
|
|
$ |
214,821 |
|
|
$ |
208,187 |
|
||
Per diluted share |
$ |
0.24 |
|
|
$ |
0.18 |
|
|
$ |
0.96 |
|
|
$ |
0.90 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO |
$ |
70,851 |
|
|
$ |
55,747 |
|
|
$ |
277,577 |
|
|
$ |
277,376 |
|
||
Non-core items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Our share of distributions from 712 Fifth Avenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
in excess of earnings |
|
(891 |
) |
|
|
(1,001 |
) |
|
|
(2,697 |
) |
|
|
(2,038 |
) |
||
Loss on early extinguishment of debt |
|
- |
|
|
|
11,989 |
|
|
|
- |
|
|
|
11,989 |
|
||
Non-cash write-off of deferred financing costs |
|
- |
|
|
|
8,215 |
|
|
|
- |
|
|
|
8,215 |
|
||
Other, net |
|
515 |
|
|
|
1,083 |
|
|
|
1,450 |
|
|
|
2,881 |
|
||
Core FFO |
|
70,475 |
|
|
|
76,033 |
|
|
|
276,330 |
|
|
|
298,423 |
|
||
Less Core FFO attributable to noncontrolling interests in: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Consolidated joint ventures |
|
(13,167 |
) |
|
|
(11,360 |
) |
|
|
(43,542 |
) |
|
|
(46,527 |
) |
||
Consolidated real estate fund |
|
159 |
|
|
|
(57 |
) |
|
|
1,450 |
|
|
|
(313 |
) |
||
Core FFO attributable to Paramount Group Operating Partnership |
|
57,467 |
|
|
|
64,616 |
|
|
|
234,238 |
|
|
|
251,583 |
|
||
Less Core FFO attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
in Operating Partnership |
|
(4,972 |
) |
|
|
(6,344 |
) |
|
|
(20,556 |
) |
|
|
(24,419 |
) |
||
Core FFO attributable to common stockholders |
$ |
52,495 |
|
|
$ |
58,272 |
|
|
$ |
213,682 |
|
|
$ |
227,164 |
|
||
Per diluted share |
$ |
0.24 |
|
|
$ |
0.26 |
|
|
$ |
0.96 |
|
|
$ |
0.98 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Weighted average shares outstanding |
|
218,989,711 |
|
|
|
227,276,459 |
|
|
|
222,436,170 |
|
|
|
231,538,065 |
|
||
Effect of dilutive securities |
|
40,406 |
|
|
|
50,071 |
|
|
|
16,558 |
|
|
|
35,323 |
|
||
Denominator for FFO and Core FFO per diluted share |
|
219,030,117 |
|
|
|
227,326,530 |
|
|
|
222,452,728 |
|
|
|
231,573,388 |
|
||
Paramount Group, Inc. |
||||||||||||||||||
Reconciliation of Net Loss to Same Store NOI and Same Store Cash NOI |
||||||||||||||||||
(Unaudited and in thousands) |
||||||||||||||||||
|
|
|
|
For the Three Months Ended |
|
|
For the Year Ended |
|
||||||||||
|
|
|
|
December 31, |
|
|
December 31, |
|
||||||||||
|
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
||||
Reconciliation of Net Loss to Same Store NOI and Same Store Cash NOI: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Net loss |
$ |
(12,615 |
) |
|
$ |
(52,777 |
) |
|
$ |
(19,196 |
) |
|
$ |
(29,603 |
) |
|||
Add (subtract) adjustments to arrive at NOI and Cash NOI: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Depreciation and amortization |
|
59,168 |
|
|
|
58,419 |
|
|
|
235,200 |
|
|
|
240,104 |
|
|||
General and administrative |
|
17,962 |
|
|
|
17,099 |
|
|
|
64,917 |
|
|
|
68,556 |
|
|||
Interest and debt expense |
|
35,788 |
|
|
|
45,217 |
|
|
|
144,208 |
|
|
|
156,679 |
|
|||
Loss on early extinguishment of debt |
|
- |
|
|
|
11,989 |
|
|
|
- |
|
|
|
11,989 |
|
|||
Income tax expense (benefit) |
|
358 |
|
|
|
(511 |
) |
|
|
1,493 |
|
|
|
312 |
|
|||
NOI from unconsolidated joint ventures |
|
11,928 |
|
|
|
7,840 |
|
|
|
48,631 |
|
|
|
22,409 |
|
|||
Loss from unconsolidated joint ventures |
|
4,175 |
|
|
|
1,891 |
|
|
|
18,619 |
|
|
|
4,706 |
|
|||
Fee income |
|
(6,378 |
) |
|
|
(5,373 |
) |
|
|
(28,070 |
) |
|
|
(22,744 |
) |
|||
Interest and other income, net |
|
(2,130 |
) |
|
|
(2,139 |
) |
|
|
(4,490 |
) |
|
|
(9,844 |
) |
|||
Adjustments related to discontinued operations (including |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
impairments and gain or loss on sale of real estate) |
|
12,765 |
|
|
|
43,156 |
|
|
|
13,465 |
|
|
|
49,103 |
|
|||
Other, net |
|
367 |
|
|
|
909 |
|
|
|
824 |
|
|
|
2,342 |
|
|||
NOI |
|
121,388 |
|
|
|
125,720 |
|
|
|
475,601 |
|
|
|
494,009 |
|
|||
Less NOI attributable to noncontrolling interests in: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Consolidated joint ventures |
|
(20,909 |
) |
|
|
(18,107 |
) |
|
|
(72,766 |
) |
|
|
(72,620 |
) |
|||
Consolidated real estate fund |
|
247 |
|
|
|
103 |
|
|
|
1,892 |
|
|
|
126 |
|
|||
PGRE's share of NOI |
|
100,726 |
|
|
|
107,716 |
|
|
|
404,727 |
|
|
|
421,515 |
|
|||
Acquisitions (1) |
|
(3,883 |
) |
|
|
- |
|
|
|
(28,760 |
) |
|
|
- |
|
|||
Dispositions / Discontinued Operations (2) |
|
(1,875 |
) |
|
|
(5,340 |
) |
|
|
(8,390 |
) |
|
|
(22,295 |
) |
|||
Non-cash write-offs (primarily straight-line rent receivables) (3) |
|
6,032 |
|
|
|
- |
|
|
|
26,826 |
|
|
|
- |
|
|||
Reserves for uncollectible accounts receivable (3) |
|
- |
|
|
|
- |
|
|
|
1,940 |
|
|
|
448 |
|
|||
Lease termination income and other, net |
|
1,242 |
|
|
|
777 |
|
|
|
6,114 |
|
|
|
346 |
|
|||
PGRE's share of Same Store NOI |
$ |
102,242 |
|
|
$ |
103,153 |
|
|
$ |
402,457 |
|
|
$ |
400,014 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOI |
$ |
121,388 |
|
|
$ |
125,720 |
|
|
$ |
475,601 |
|
|
$ |
494,009 |
|
|||
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Straight-line rent adjustments (including our share of unconsolidated joint ventures) |
|
(4,961 |
) |
|
|
(11,218 |
) |
|
|
(32,325 |
) |
|
|
(45,580 |
) |
|||
Amortization of above and below-market leases, net (including our share of unconsolidated joint ventures) |
|
(1,126 |
) |
|
|
(3,141 |
) |
|
|
(8,645 |
) |
|
|
(11,913 |
) |
|||
Adjustments related to discontinued operations |
|
146 |
|
|
|
132 |
|
|
|
507 |
|
|
|
434 |
|
|||
Cash NOI |
|
115,447 |
|
|
|
111,493 |
|
|
|
435,138 |
|
|
|
436,950 |
|
|||
Less Cash NOI attributable to noncontrolling interests in: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Consolidated joint ventures |
|
(18,095 |
) |
|
|
(15,841 |
) |
|
|
(59,526 |
) |
|
|
(62,889 |
) |
|||
Consolidated real estate fund |
|
247 |
|
|
|
103 |
|
|
|
1,892 |
|
|
|
126 |
|
|||
PGRE's share of Cash NOI |
|
97,599 |
|
|
|
95,755 |
|
|
|
377,504 |
|
|
|
374,187 |
|
|||
Acquisitions (1) |
|
(3,185 |
) |
|
|
- |
|
|
|
(22,644 |
) |
|
|
- |
|
|||
Dispositions / Discontinued Operations (2) |
|
(2,021 |
) |
|
|
(5,024 |
) |
|
|
(8,897 |
) |
|
|
(21,688 |
) |
|||
Reserves for uncollectible accounts receivable (3) |
|
- |
|
|
|
- |
|
|
|
1,940 |
|
|
|
448 |
|
|||
Lease termination income and other, net |
|
1,182 |
|
|
|
799 |
|
|
|
6,030 |
|
|
|
345 |
|
|||
PGRE's share of Same Store Cash NOI |
$ |
93,575 |
|
|
$ |
91,530 |
|
|
$ |
353,933 |
|
|
$ |
353,292 |
|
|||
(1) |
Represents our share of Same Store NOI and Same Store 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. |
|
(2) |
Primarily represents NOI and Cash NOI from discontinued operations (1899 Pennsylvania Avenue in 2020 and 1899 Pennsylvania Avenue and Liberty Place in 2019). |
|
(3) |
Represents impairments of receivables arising from operating leases that have been consistently excluded from our same store results in prior periods as noted in our definition of these terms. In prior periods, adjustments for these items have been relatively small and as such, were included within "other." |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210210005921/en/
FAQ
What were Paramount Group's Q4 2020 financial results?
How did Core Funds from Operations (Core FFO) perform in Q4 2020 for PGRE?
What is the rent collection rate for Paramount Group in Q4 2020?
What is the estimated Core FFO guidance for 2021 for PGRE?
What was the liquidity position of Paramount Group at the end of Q4 2020?
