Paramount Announces Fourth Quarter 2024 Results
Paramount Group (NYSE: PGRE) reported its Q4 2024 financial results, showing a net loss of $38.6 million ($0.18 per share), an improvement from the $205.6 million loss in Q4 2023. The company's Core FFO was $41.2 million ($0.19 per share), down from $47.4 million in Q4 2023.
Key operational metrics showed a 0.4% decrease in Same Store NOI and a 0.1% decrease in Same Store Cash NOI. The company leased 108,824 square feet during Q4, with negative mark-to-markets of 7.2% on GAAP basis and 11.1% on cash basis.
In a significant transaction, PGRE sold a 45% equity interest in 900 Third Avenue at a $210 million valuation, receiving approximately $94 million in net proceeds. For 2025, the company projects Core FFO between $0.51 and $0.57 per diluted share, lower than 2024's $0.80, primarily due to major tenant lease expirations.
Paramount Group (NYSE: PGRE) ha riportato i risultati finanziari del Q4 2024, evidenziando una perdita netta di 38,6 milioni di dollari (0,18 dollari per azione), un miglioramento rispetto alla perdita di 205,6 milioni di dollari nel Q4 2023. L'FFO core dell'azienda è stato di 41,2 milioni di dollari (0,19 dollari per azione), in calo rispetto ai 47,4 milioni di dollari del Q4 2023.
I principali indicatori operativi hanno mostrato una diminuzione dello 0,4% nel NOI Same Store e una diminuzione dello 0,1% nel Cash NOI Same Store. L'azienda ha affittato 108.824 piedi quadrati durante il Q4, con un mark-to-market negativo del 7,2% su base GAAP e dell'11,1% su base cash.
In una transazione significativa, PGRE ha venduto una partecipazione azionaria del 45% in 900 Third Avenue a una valutazione di 210 milioni di dollari, ricevendo circa 94 milioni di dollari in proventi netti. Per il 2025, l'azienda prevede un FFO core compreso tra 0,51 e 0,57 dollari per azione diluita, inferiore agli 0,80 dollari del 2024, principalmente a causa della scadenza dei contratti di locazione dei principali inquilini.
Paramount Group (NYSE: PGRE) informó sus resultados financieros del Q4 2024, mostrando una pérdida neta de 38.6 millones de dólares (0.18 dólares por acción), una mejora respecto a la pérdida de 205.6 millones de dólares en el Q4 2023. El FFO central de la compañía fue de 41.2 millones de dólares (0.19 dólares por acción), por debajo de los 47.4 millones de dólares en el Q4 2023.
Los principales indicadores operativos mostraron una disminución del 0.4% en el NOI de Tienda Similar y una disminución del 0.1% en el Cash NOI de Tienda Similar. La compañía arrendó 108,824 pies cuadrados durante el Q4, con un mark-to-market negativo del 7.2% en base GAAP y del 11.1% en base de efectivo.
En una transacción significativa, PGRE vendió un interés de capital del 45% en 900 Third Avenue a una valoración de 210 millones de dólares, recibiendo aproximadamente 94 millones de dólares en ingresos netos. Para 2025, la compañía proyecta un FFO central entre 0.51 y 0.57 dólares por acción diluida, inferior al 0.80 de 2024, principalmente debido a la expiración de los contratos de arrendamiento de inquilinos importantes.
파라마운트 그룹 (NYSE: PGRE)는 2024년 4분기 재무 결과를 발표하며 3,860만 달러(주당 0.18달러)의 순손실을 기록했으며, 이는 2023년 4분기의 2억 5,560만 달러 손실에서 개선된 수치입니다. 회사의 핵심 FFO는 4,120만 달러(주당 0.19달러)로, 2023년 4분기의 4,740만 달러에서 감소했습니다.
주요 운영 지표는 동일 매장 NOI가 0.4% 감소하고 동일 매장 현금 NOI가 0.1% 감소했음을 보여주었습니다. 회사는 4분기 동안 108,824 평방피트를 임대했으며, GAAP 기준으로 7.2%의 부정적인 마크 투 마켓과 현금 기준으로 11.1%의 부정적인 마크 투 마켓을 기록했습니다.
중요한 거래에서 PGRE는 900 Third Avenue에서 45%의 지분을 2억 1천만 달러로 평가하여 판매하고 약 9,400만 달러의 순수익을 받았습니다. 2025년을 위해 회사는 희석 주당 0.51달러에서 0.57달러 사이의 핵심 FFO를 예상하고 있으며, 이는 2024년의 0.80달러보다 낮으며, 주로 주요 임차인의 임대 계약 만료로 인한 것입니다.
Paramount Group (NYSE: PGRE) a annoncé ses résultats financiers du 4ème trimestre 2024, affichant une perte nette de 38,6 millions de dollars (0,18 dollar par action), une amélioration par rapport à la perte de 205,6 millions de dollars au 4ème trimestre 2023. Le FFO central de l'entreprise s'élevait à 41,2 millions de dollars (0,19 dollar par action), en baisse par rapport à 47,4 millions de dollars au 4ème trimestre 2023.
Les principaux indicateurs opérationnels ont montré une diminution de 0,4 % du NOI des magasins comparables et une diminution de 0,1 % du Cash NOI des magasins comparables. L'entreprise a loué 108 824 pieds carrés au cours du 4ème trimestre, avec des valeurs de mark-to-market négatives de 7,2 % sur une base GAAP et de 11,1 % sur une base de trésorerie.
Dans une transaction significative, PGRE a vendu une participation de 45 % dans 900 Third Avenue à une valorisation de 210 millions de dollars, recevant environ 94 millions de dollars de produits nets. Pour 2025, l'entreprise prévoit un FFO central compris entre 0,51 et 0,57 dollar par action diluée, inférieur aux 0,80 dollar de 2024, principalement en raison de l'expiration des baux des principaux locataires.
Paramount Group (NYSE: PGRE) hat seine finanziellen Ergebnisse für das 4. Quartal 2024 veröffentlicht und einen Nettoverlust von 38,6 Millionen Dollar (0,18 Dollar pro Aktie) ausgewiesen, was eine Verbesserung gegenüber dem Verlust von 205,6 Millionen Dollar im 4. Quartal 2023 darstellt. Das Core FFO des Unternehmens betrug 41,2 Millionen Dollar (0,19 Dollar pro Aktie), was einen Rückgang gegenüber 47,4 Millionen Dollar im 4. Quartal 2023 darstellt.
Die wichtigsten betrieblichen Kennzahlen zeigten einen Rückgang von 0,4% im Same Store NOI und einen Rückgang von 0,1% im Same Store Cash NOI. Das Unternehmen hat im 4. Quartal 108.824 Quadratfuß vermietet, mit negativen Mark-to-Market-Werten von 7,2% auf GAAP-Basis und 11,1% auf Cash-Basis.
In einer bedeutenden Transaktion verkaufte PGRE einen 45%igen Eigenanteil an 900 Third Avenue zu einer Bewertung von 210 Millionen Dollar und erhielt etwa 94 Millionen Dollar an Nettomitteln. Für 2025 prognostiziert das Unternehmen ein Core FFO zwischen 0,51 und 0,57 Dollar pro verwässerter Aktie, was unter den 0,80 Dollar von 2024 liegt, hauptsächlich aufgrund der wesentlichen Mietvertragsabläufe.
- Net loss improved significantly from $205.6M in Q4 2023 to $38.6M in Q4 2024
- Received $94M in proceeds from 900 Third Avenue equity sale
- Maintained stable Same Store Cash NOI with only 0.1% decrease
- Core FFO declined from $0.22 to $0.19 per share YoY in Q4
- Negative leasing spreads: -7.2% GAAP, -11.1% cash
- Occupancy dropped 530 basis points to 84.8% YoY
- 2025 Core FFO guidance shows significant decline to $0.51-$0.57 from $0.80 in 2024
Insights
Paramount Group's Q4 2024 results reveal significant challenges for the office REIT, with net losses of $38.6 million ($0.18 per share) and Core FFO declining to $0.19 per share from $0.22 year-over-year. While this represents an improvement from the substantial $205.6 million loss in Q4 2023, the underlying performance metrics signal continued deterioration in the company's operating fundamentals.
The most concerning revelation is Paramount's 2025 Core FFO guidance of $0.51-$0.57 per share, representing a dramatic
Leasing metrics reveal persistent market weakness, with negative mark-to-markets of -7.2% on a GAAP basis and -11.1% on a cash basis, indicating Paramount must accept lower rents to attract tenants. The company's same-store leased occupancy of 84.8% shows a substantial
The January 2025 disposition of a
These results reflect the broader structural challenges facing the office sector, with Paramount's portfolio particularly exposed to the difficulties of leasing premium office space in a market still adapting to post-pandemic work patterns and higher interest rates.
Paramount Group's Q4 results expose the severe structural challenges facing premium office owners, with the company projecting a dramatic
The negative mark-to-markets of
The partial disposition of 900 Third Avenue at a
Paramount's same-store occupancy decline of
The combination of falling rental rates, high capital costs for tenant retention, and major tenant departures suggests Paramount may need to reconsider its capital allocation strategy, including potential dividend adjustments, to navigate this prolonged structural shift in office demand.
– Initiates Guidance for Full Year 2025 –
Fourth Quarter Highlights:
Results of Operations:
-
Reported net loss attributable to common stockholders of
$38.6 million $0.18 $205.6 million $0.95 $30.9 million $0.14 $185.0 million $0.85 $7.3 million $0.03 -
Reported Core Funds from Operations (“Core FFO”) attributable to common stockholders of
$41.2 million $0.19 $47.4 million $0.22 -
Reported a
0.4% decrease in Same Store Net Operating Income (“NOI”) and a0.1% decrease in Same Store Cash NOI in the quarter ended December 31, 2024, compared to the same period in the prior year. -
Leased 108,824 square feet, of which the Company’s share was 75,821 square feet that was leased at a weighted average initial rent of
$85.65 7.2% on a GAAP basis and negative11.1% on a cash basis.
Transactions Subsequent to Fourth Quarter:
-
On January 17, 2025, the Company entered into a consent agreement with the lenders of its revolving credit facility to permit the disposition of a
45.0% equity interest in 900 Third Avenue (as further described below). In connection therewith, the Company reduced the aggregate commitments under the credit facility to$450.0 million $900.0 million $500.0 million 50% to60% , and (iii) limit borrowings under the credit facility to$200.0 million -
On January 17, 2025, the Company sold a
45.0% equity interest in 900 Third Avenue, a 600,000 square foot Class A office building located inNew York City , at a gross asset valuation of$210.0 million $94.0 million $9.4 million
___________________________ |
(1) Second generation space represents space leased in the current period (i) that has been vacant for less than twelve months, or (ii) that has been leased ahead of its originally scheduled expiration. |
Financial Results
Quarter Ended December 31, 2024
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 10, was
Year Ended December 31, 2024
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 10, was
Portfolio Operations
Quarter Ended December 31, 2024
Same Store NOI decreased by
During the quarter ended December 31, 2024, the Company leased 108,824 square feet, of which 98,485 square feet was leased in the Company’s same store portfolio. Of the 98,485 square feet leased, the Company’s share was 75,821 square feet that was leased at a weighted average initial rent of
Of the 108,824 square feet leased in the fourth quarter, 75,821 square feet represented the Company’s share of second generation space for which mark-to-markets were negative
Year Ended December 31, 2024
Same Store NOI decreased by
During the year ended December 31, 2024, the Company leased 763,449 square feet, of which 664,764 square feet was leased in the Company’s same store portfolio. Of the 664,764 square feet leased, the Company’s share was 519,961 square feet that was leased at a weighted average initial rent of
Of the 763,449 square feet leased during the year, 365,978 square feet represented the Company’s share of second generation space for which mark-to-markets were negative
Guidance
The Company is providing its Estimated Core FFO Guidance for the full year of 2025, 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 that 2025 Core FFO will be between
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Full Year 2025 |
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(Amounts per diluted share) |
Low |
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High |
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Estimated net loss attributable to common stockholders |
$ |
(0.36 |
) |
|
$ |
(0.30 |
) |
||||||
Pro rata share of real estate depreciation and amortization, including
|
|
0.87 |
|
|
|
0.87 |
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Estimated FFO / Core FFO |
$ |
0.51 |
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|
$ |
0.57 |
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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 7. These estimates do not include the impact on operating results from possible future property acquisitions or dispositions, or realized and unrealized gains and losses on real estate related fund investments. There can be no assurance that 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 ability to enter into new leases or renew leases on favorable terms; dependence on tenants’ financial condition; the risk we may lose a major tenant or that a major tenant may be adversely impacted by market and economic conditions, including elevated inflation and interest rates; trends in the office real estate industry including telecommuting, flexible work schedules, open workplaces and teleconferencing; the uncertainties of real estate development, acquisition and disposition activity; the ability to effectively integrate acquisitions; fluctuations in interest rates and the costs and availability of financing; the ability of our joint venture partners to satisfy their obligations; the effects of local, national and international economic and market conditions and the impact of elevated inflation and interest rates on such market conditions; the effects of acquisitions, dispositions and possible impairment charges on our operating results; the negative impact of any future pandemic, endemic or outbreak of infectious disease on the
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 accounting principles generally accepted in
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 include property-related expenses such as cleaning, security, repairs and maintenance, utilities, property administration and real estate taxes). We also use 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. We present PGRE’s share of NOI and Cash NOI which represents our share of NOI and Cash NOI of consolidated and unconsolidated joint ventures, based on our percentage ownership in the underlying assets. We use NOI and Cash NOI internally as performance measures and believe they provide useful information to investors regarding our financial condition and results of operations because they reflect only those income and expense items that are incurred at the property level.
Same Store NOI is used to measure the operating performance of properties in our
In the first quarter of 2024, we updated our presentation of NOI, Cash NOI and Core FFO attributable to common stockholders to exclude the impact of Market Center and 111 Sutter Street, which we have designated as “non-core” assets. Accordingly, we have recast the presentation for all prior periods presented to reflect this change.
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, 2024, which is available on our website.
Investor Conference Call and Webcast
The Company will host a conference call and audio webcast on Friday, February 28, 2025 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 28, 2025 through March 7, 2025 and can be accessed by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the passcode 13750770.
A live audio webcast of the conference call will be available through the “Investors” section of the Company’s website, www.pgre.com. A replay of the webcast will be archived on the Company’s website.
About Paramount Group, Inc.
Headquartered in
Paramount Group, Inc. Consolidated Balance Sheets (Unaudited and in thousands) |
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Assets: |
|
December 31, 2024 |
|
|
December 31, 2023 |
|
||||||
Real estate, at cost: |
|
|
|
|
|
|
||||||
Land |
|
$ |
1,966,237 |
|
|
$ |
1,966,237 |
|
||||
Buildings and improvements |
|
|
6,325,097 |
|
|
|
6,250,379 |
|
||||
|
|
|
8,291,334 |
|
|
|
8,216,616 |
|
||||
Accumulated depreciation and amortization |
|
|
(1,639,529 |
) |
|
|
(1,471,819 |
) |
||||
Real estate, net |
|
|
6,651,805 |
|
|
|
6,744,797 |
|
||||
Cash and cash equivalents |
|
|
375,056 |
|
|
|
428,208 |
|
||||
Restricted cash |
|
|
180,391 |
|
|
|
81,391 |
|
||||
Accounts and other receivables |
|
|
18,229 |
|
|
|
18,053 |
|
||||
Real estate related fund investments |
|
|
- |
|
|
|
775 |
|
||||
Investments in unconsolidated real estate related funds |
|
|
4,649 |
|
|
|
4,549 |
|
||||
Investments in unconsolidated joint ventures |
|
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85,952 |
|
|
|
132,239 |
|
||||
Deferred rent receivable |
|
|
356,425 |
|
|
|
351,209 |
|
||||
Deferred charges, net |
|
|
100,684 |
|
|
|
108,751 |
|
||||
Intangible assets, net |
|
|
50,492 |
|
|
|
68,005 |
|
||||
Other assets |
|
|
47,820 |
|
|
|
68,238 |
|
||||
Total assets |
|
$ |
7,871,503 |
|
|
$ |
8,006,215 |
|
||||
|
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|
|
|
|
|
|
|
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|
||
Liabilities: |
|
|
|
|
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|
||||||
Notes and mortgages payable, net |
|
$ |
3,676,630 |
|
|
$ |
3,803,484 |
|
||||
Revolving credit facility |
|
|
- |
|
|
|
- |
|
||||
Accounts payable and accrued expenses |
|
|
119,881 |
|
|
|
114,463 |
|
||||
Dividends and distributions payable |
|
|
- |
|
|
|
8,360 |
|
||||
Intangible liabilities, net |
|
|
20,870 |
|
|
|
28,003 |
|
||||
Other liabilities |
|
|
44,625 |
|
|
|
37,017 |
|
||||
Total liabilities |
|
|
3,862,006 |
|
|
|
3,991,327 |
|
||||
Equity: |
|
|
|
|
|
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Paramount Group, Inc. equity |
|
|
3,141,277 |
|
|
|
3,203,285 |
|
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Noncontrolling interests in: |
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|
|
|
|
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Consolidated joint ventures |
|
|
495,340 |
|
|
|
413,925 |
|
||||
Consolidated real estate related funds |
|
|
82,875 |
|
|
|
110,589 |
|
||||
Operating Partnership |
|
|
290,005 |
|
|
|
287,089 |
|
||||
Total equity |
|
|
4,009,497 |
|
|
|
4,014,888 |
|
||||
Total liabilities and equity |
|
$ |
7,871,503 |
|
|
$ |
8,006,215 |
|
||||
Paramount Group, Inc. Consolidated Statements of Income (Unaudited and in thousands, except share and per share amounts) |
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For the Three Months Ended |
|
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For the Year Ended |
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||||||||||
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|
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|
December 31, |
|
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December 31, |
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|
|
2024 |
|
|
2023 |
|
|
2024 |
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|
2023 |
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Revenues: |
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|
|
|
|
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|
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|
|
|
|||||||||
|
Rental revenue |
|
$ |
178,114 |
|
|
$ |
181,736 |
|
|
$ |
721,750 |
|
|
$ |
711,470 |
|
||||
|
Fee and other income |
|
|
8,153 |
|
|
|
10,735 |
|
|
|
35,701 |
|
|
|
31,318 |
|
||||
|
|
Total revenues |
|
|
186,267 |
|
|
|
192,471 |
|
|
|
757,451 |
|
|
|
742,788 |
|
|||
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Operating |
|
|
77,030 |
|
|
|
77,076 |
|
|
|
303,278 |
|
|
|
293,965 |
|
||||
|
Depreciation and amortization |
|
|
56,622 |
|
|
|
68,866 |
|
|
|
239,542 |
|
|
|
250,644 |
|
||||
|
General and administrative |
|
|
16,395 |
|
|
|
15,679 |
|
|
|
66,333 |
|
|
|
61,986 |
|
||||
|
Transaction related costs |
|
|
80 |
|
|
|
99 |
|
|
|
923 |
|
|
|
422 |
|
||||
|
|
Total expenses |
|
|
150,127 |
|
|
|
161,720 |
|
|
|
610,076 |
|
|
|
607,017 |
|
|||
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Loss from real estate related fund investments |
|
|
(36 |
) |
|
|
(59,341 |
) |
|
|
(128 |
) |
|
|
(96,375 |
) |
||||
|
Income (loss) from unconsolidated real estate related funds |
|
|
74 |
|
|
|
45 |
|
|
|
273 |
|
|
|
(822 |
) |
||||
|
Loss from unconsolidated joint ventures |
|
|
(44,261 |
) |
|
|
(207,160 |
) |
|
|
(47,359 |
) |
|
|
(270,298 |
) |
||||
|
Interest and other income, net |
|
|
3,625 |
|
|
|
4,830 |
|
|
|
30,455 |
|
|
|
14,837 |
|
||||
|
Interest and debt expense |
|
|
(42,874 |
) |
|
|
(40,550 |
) |
|
|
(166,952 |
) |
|
|
(152,990 |
) |
||||
Loss before income taxes |
|
(47,332 |
) |
|
|
(271,425 |
) |
|
|
(36,336 |
) |
|
|
(369,877 |
) |
||||||
|
Income tax expense |
|
|
(730 |
) |
|
|
(302 |
) |
|
|
(2,058 |
) |
|
|
(1,426 |
) |
||||
Net loss |
|
|
(48,062 |
) |
|
|
(271,727 |
) |
|
|
(38,394 |
) |
|
|
(371,303 |
) |
|||||
Less net (income) loss attributable to noncontrolling interests in: |
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Consolidated joint ventures |
|
|
(4,028 |
) |
|
|
(4,585 |
) |
|
|
(22,462 |
) |
|
|
(20,464 |
) |
||||
|
Consolidated real estate related funds |
|
|
9,884 |
|
|
|
52,383 |
|
|
|
10,292 |
|
|
|
109,795 |
|
||||
|
Operating Partnership |
|
|
3,560 |
|
|
|
18,379 |
|
|
|
4,276 |
|
|
|
22,228 |
|
||||
Net loss attributable to common stockholders |
|
$ |
(38,646 |
) |
|
$ |
(205,550 |
) |
|
$ |
(46,288 |
) |
|
$ |
(259,744 |
) |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Loss per Common Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Basic |
|
$ |
(0.18 |
) |
|
$ |
(0.95 |
) |
|
$ |
(0.21 |
) |
|
$ |
(1.20 |
) |
||||
|
Diluted |
|
$ |
(0.18 |
) |
|
$ |
(0.95 |
) |
|
$ |
(0.21 |
) |
|
$ |
(1.20 |
) |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Basic |
|
|
217,335,362 |
|
|
|
217,071,959 |
|
|
|
217,240,620 |
|
|
|
216,922,235 |
|
||||
|
Diluted |
|
|
217,335,362 |
|
|
|
217,071,959 |
|
|
|
217,240,620 |
|
|
|
216,922,235 |
|
||||
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, |
|
||||||||||
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Reconciliation of net loss to FFO and Core FFO: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Net loss |
|
$ |
(48,062 |
) |
|
$ |
(271,727 |
) |
|
$ |
(38,394 |
) |
|
$ |
(371,303 |
) |
||||
|
Real estate depreciation and amortization (including our share of unconsolidated joint ventures) |
|
|
58,040 |
|
|
|
76,723 |
|
|
|
250,986 |
|
|
|
286,410 |
|
||||
|
Our share of non-cash real estate impairment losses related to unconsolidated joint ventures |
|
|
33,733 |
|
|
|
201,496 |
|
|
|
33,733 |
|
|
|
226,230 |
|
||||
|
Amounts attributable to noncontrolling interests in consolidated joint ventures and real estate related funds |
|
|
(4,104 |
) |
|
|
37,609 |
|
|
|
(51,085 |
) |
|
|
50,142 |
|
||||
|
FFO attributable to the Operating Partnership |
|
|
39,607 |
|
|
|
44,101 |
|
|
|
195,240 |
|
|
|
191,479 |
|
||||
|
Amounts attributable to noncontrolling interests in the Operating Partnership |
|
|
(3,340 |
) |
|
|
(3,620 |
) |
|
|
(16,419 |
) |
|
|
(13,481 |
) |
||||
|
FFO attributable to common stockholders |
|
$ |
36,267 |
|
|
$ |
40,481 |
|
|
$ |
178,821 |
|
|
$ |
177,998 |
|
||||
|
|
Per diluted share |
|
$ |
0.17 |
|
|
$ |
0.19 |
|
|
$ |
0.82 |
|
|
$ |
0.82 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
FFO attributable to the Operating Partnership |
|
$ |
39,607 |
|
|
$ |
44,101 |
|
|
$ |
195,240 |
|
|
$ |
191,479 |
|
||||
|
Adjustments for non-core items: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Non-cash gain on extinguishment of IPO related tax liability |
|
|
- |
|
|
|
- |
|
|
|
(15,437 |
) |
|
|
- |
|
|||
|
|
Non-core assets (1) |
|
|
- |
|
|
|
1,413 |
|
|
|
- |
|
|
|
(2,122 |
) |
|||
|
|
Our share of realized and unrealized gains and losses from consolidated and unconsolidated real estate related funds |
|
|
(32 |
) |
|
|
7,931 |
|
|
|
69 |
|
|
|
14,978 |
|
|||
|
|
Other, net (primarily adjustments related to unconsolidated joint ventures) |
|
|
5,438 |
|
|
|
(1,766 |
) |
|
|
9,139 |
|
|
|
(3,301 |
) |
|||
|
Core FFO attributable to the Operating Partnership |
|
|
45,013 |
|
|
|
51,679 |
|
|
|
189,011 |
|
|
|
201,034 |
|
||||
|
Amounts attributable to noncontrolling interests in the Operating Partnership |
|
|
(3,796 |
) |
|
|
(4,241 |
) |
|
|
(15,905 |
) |
|
|
(14,237 |
) |
||||
|
Core FFO attributable to common stockholders |
|
$ |
41,217 |
|
|
$ |
47,438 |
|
|
$ |
173,106 |
|
|
$ |
186,797 |
|
||||
|
|
Per diluted share |
|
$ |
0.19 |
|
|
$ |
0.22 |
|
|
$ |
0.80 |
|
|
$ |
0.86 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Reconciliation of weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Weighted average shares outstanding |
|
|
217,335,362 |
|
|
|
217,071,959 |
|
|
|
217,240,620 |
|
|
|
216,922,235 |
|
||||
|
Effect of dilutive securities |
|
|
70,797 |
|
|
|
77,069 |
|
|
|
31,354 |
|
|
|
20,527 |
|
||||
|
Denominator for FFO and Core FFO per diluted share |
|
|
217,406,159 |
|
|
|
217,149,028 |
|
|
|
217,271,974 |
|
|
|
216,942,762 |
|
||||
___________________________ |
(1) Represents Market Center and 111 Sutter Street. |
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, |
|
||||||||||
|
|
|
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Reconciliation of net loss to Same Store NOI |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
and Same Store Cash NOI: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Net loss |
$ |
(48,062 |
) |
|
$ |
(271,727 |
) |
|
$ |
(38,394 |
) |
|
$ |
(371,303 |
) |
||||
|
Adjustments to arrive at NOI: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Fee income |
|
(4,552 |
) |
|
|
(7,491 |
) |
|
|
(21,880 |
) |
|
|
(21,597 |
) |
|||
|
|
Depreciation and amortization |
|
56,622 |
|
|
|
68,866 |
|
|
|
239,542 |
|
|
|
250,644 |
|
|||
|
|
General and administrative |
|
16,395 |
|
|
|
15,679 |
|
|
|
66,333 |
|
|
|
61,986 |
|
|||
|
|
Loss from real estate related fund investments |
|
36 |
|
|
|
59,341 |
|
|
|
128 |
|
|
|
96,375 |
|
|||
|
|
Loss from unconsolidated joint ventures |
|
44,261 |
|
|
|
207,160 |
|
|
|
47,359 |
|
|
|
270,298 |
|
|||
|
|
NOI from unconsolidated joint ventures (excluding One Steuart Lane) |
|
7,055 |
|
|
|
7,026 |
|
|
|
23,666 |
|
|
|
37,360 |
|
|||
|
|
Interest and other income, net |
|
(3,625 |
) |
|
|
(4,830 |
) |
|
|
(30,455 |
) |
|
|
(14,837 |
) |
|||
|
|
Interest and debt expense |
|
42,874 |
|
|
|
40,550 |
|
|
|
166,952 |
|
|
|
152,990 |
|
|||
|
|
Income tax expense |
|
730 |
|
|
|
302 |
|
|
|
2,058 |
|
|
|
1,426 |
|
|||
|
|
Non-core assets (1) |
|
- |
|
|
|
(2,380 |
) |
|
|
- |
|
|
|
(16,666 |
) |
|||
|
|
Other, net |
|
6 |
|
|
|
54 |
|
|
|
650 |
|
|
|
1,244 |
|
|||
|
|
Amounts attributable to noncontrolling interests in consolidated joint ventures |
|
(21,564 |
) |
|
|
(22,397 |
) |
|
|
(92,096 |
) |
|
|
(89,948 |
) |
|||
|
PGRE's share of NOI |
|
90,176 |
|
|
|
90,153 |
|
|
|
363,863 |
|
|
|
357,972 |
|
||||
|
|
Non-same store adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
Lease termination income |
|
(1,168 |
) |
|
|
(766 |
) |
|
|
(4,345 |
) |
|
|
(6,887 |
) |
|||
|
|
Non-cash write-offs of straight-line rent receivables |
|
- |
|
|
|
363 |
|
|
|
- |
|
|
|
14,346 |
|
|||
|
|
Other, net |
|
2,320 |
|
|
|
1,939 |
|
|
|
7,358 |
|
|
|
4,744 |
|
|||
|
PGRE's share of Same Store NOI |
$ |
91,328 |
|
|
$ |
91,689 |
|
|
$ |
366,876 |
|
|
$ |
370,175 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
PGRE's share of NOI |
$ |
90,176 |
|
|
$ |
90,153 |
|
|
$ |
363,863 |
|
|
$ |
357,972 |
|
||||
|
Adjustments to arrive at Cash NOI: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Straight-line rent (including our share of unconsolidated joint ventures) |
|
(1,388 |
) |
|
|
(4,476 |
) |
|
|
(8,082 |
) |
|
|
(6,166 |
) |
|||
|
|
Amortization of above and below-market leases, net (including our share of unconsolidated joint ventures) |
|
(1,142 |
) |
|
|
(1,912 |
) |
|
|
(6,446 |
) |
|
|
(8,099 |
) |
|||
|
|
Non-core assets (1) |
|
- |
|
|
|
802 |
|
|
|
- |
|
|
|
1,968 |
|
|||
|
|
Amounts attributable to noncontrolling interests in consolidated joint ventures |
|
(1,507 |
) |
|
|
1,660 |
|
|
|
(3,566 |
) |
|
|
9,139 |
|
|||
|
PGRE's share of Cash NOI |
|
86,139 |
|
|
|
86,227 |
|
|
|
345,769 |
|
|
|
354,814 |
|
||||
|
|
Non-same store adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
Lease termination income |
|
(1,168 |
) |
|
|
(766 |
) |
|
|
(4,345 |
) |
|
|
(6,887 |
) |
|||
|
|
Other, net |
|
2,355 |
|
|
|
1,969 |
|
|
|
7,358 |
|
|
|
4,744 |
|
|||
|
PGRE's share of Same Store Cash NOI |
$ |
87,326 |
|
|
$ |
87,430 |
|
|
$ |
348,782 |
|
|
$ |
352,671 |
|
||||
___________________________ |
(1) Represents Market Center and 111 Sutter Street. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250227714293/en/
Wilbur Paes
Chief Operating Officer,
Chief Financial Officer and Treasurer
212-237-3122
ir@pgre.com
Tom Hennessy
Vice President, Investor Relations and
Business Development
212-237-3138
ir@pgre.com
Media:
212-492-2285
pr@pgre.com
Source: Paramount Group, Inc.
FAQ
What were Paramount Group's Q4 2024 financial results?
How much equity did PGRE sell in 900 Third Avenue and at what valuation?
What is Paramount's Core FFO guidance for 2025?
How did PGRE's leasing performance fare in Q4 2024?
What was PGRE's occupancy rate at the end of 2024?
