Paramount Announces Second Quarter 2023 Results

NEW YORK--(BUSINESS WIRE)-- Paramount Group, Inc. (NYSE: PGRE) (“Paramount” or the “Company”) filed its Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 today and reported results for the second quarter ended June 30, 2023.

Second Quarter Highlights:

Results of Operations:

• Reported net loss attributable to common stockholders of $47.5 million, or $0.22 per diluted share, for the quarter ended June 30, 2023, compared to net loss attributable to common stockholders of $0.4 million, or $0.00 per diluted share, for the quarter ended June 30, 2022. Net loss attributable to common stockholders for the quarter ended June 30, 2023, includes (i) $23.1 million, or $0.11 per diluted share, for our share of a non-cash real estate impairment loss related to an unconsolidated joint venture, and (ii) non-cash straight-line rent receivable write-offs aggregating $13.0 million, or $0.06 per diluted share, related to the previously announced terminated SVB Securities lease and the surrendered JPMorgan space.
• Reported Core Funds from Operations (“Core FFO”) attributable to common stockholders of $38.7 million, or $0.18 per diluted share, for the quarter ended June 30, 2023, compared to $53.6 million, or $0.24 per diluted share, for the quarter ended June 30, 2022. Core FFO attributable to common stockholders for the quarter ended June 30, 2023 includes non-cash straight-line rent receivable write-offs aggregating $13.0 million, or $0.06 per diluted share, related to the previously announced terminated SVB Securities lease and the surrendered JPMorgan space.
• Updated its full year 2023 Earnings Guidance as follows:
  • Estimated net loss attributable to common stockholders is expected to be between $0.28 and $0.24 per diluted share, compared to its prior estimate of $0.11 and $0.07 per diluted share, an increase in net loss of $0.17 per diluted share at the midpoint of the Company’s prior estimate.
  • Estimated Core FFO attributable to common stockholders is expected to be between $0.84 and $0.88 per diluted share, compared to its prior estimate of $0.90 and $0.94 per diluted share, a decrease of $0.06 per diluted share at the midpoint of the Company’s prior guidance.
• Reported a 5.0% decrease in Same Store Net Operating Income (“NOI”) and a 4.7% decrease in Same Store Cash NOI in the quarter ended June 30, 2023, compared to the same period in the prior year.
• Leased 71,847 square feet, of which the Company’s share was 57,404 square feet that was leased at a weighted average initial rent of $78.14 per square foot. Of the 71,847 square feet leased, 34,514 square feet represented the Company’s share of second generation space⁽¹⁾, for which mark-to-markets were 3.9% on a GAAP basis and negative 3.1% on a cash basis.
• Declared a second quarter cash dividend of $0.035 per common share on June 15, 2023, which was paid on July 14, 2023.

___________________ (1) Second generation space represents space leased in the current period (i) prior to its originally scheduled expiration, or (ii) that has been vacant for less than twelve months.

Financial Results

Quarter Ended June 30, 2023

Net loss attributable to common stockholders was $47.5 million, or $0.22 per diluted share, for the quarter ended June 30, 2023, compared to $0.4 million, or $0.00 per diluted share, for the quarter ended June 30, 2022. Net loss attributable to common stockholders for the quarter ended June 30, 2023, includes (i) $23.1 million, or $0.11 per diluted share, for our share of a non-cash real estate impairment loss related to an unconsolidated joint venture, and (ii) non-cash straight-line rent receivable write-offs aggregating $13.0 million, or $0.06 per diluted share, related to the previously announced terminated SVB Securities lease and the surrendered JPMorgan space.

Funds from Operations (“FFO”) attributable to common stockholders was $34.0 million, or $0.16 per diluted share, for the quarter ended June 30, 2023, compared to $53.3 million, or $0.24 per diluted share, for the quarter ended June 30, 2022. FFO attributable to common stockholders for the quarter ended June 30, 2023 includes non-cash straight-line rent receivable write-offs aggregating $13.0 million, or $0.06 per diluted share, related to the previously announced terminated SVB Securities lease and the surrendered JPMorgan space. FFO attributable to common stockholders for the quarters ended June 30, 2023 and 2022 also includes the impact of non-core items, which are listed in the table on page 10. The aggregate of the non-core items, net of amounts attributable to noncontrolling interests, decreased FFO attributable to common stockholders for the quarter ended June 30, 2023 and 2022 by $4.7 million and $0.3 million, respectively, or $0.02 and $0.00 per diluted share, respectively. Core FFO attributable to common stockholders, which excludes the impact of the non-core items listed on page 10, was $38.7 million, or $0.18 per diluted share, for the quarter ended June 30, 2023, compared to $53.6 million, or $0.24 per diluted share, for the quarter ended June 30, 2022.

Six Months Ended June 30, 2023

Net loss attributable to common stockholders was $45.8 million, or $0.21 per diluted share, for the six months ended June 30, 2023, compared to net income attributable to common stockholders of $3.0 million, or $0.01 per diluted share, for the six months ended June 30, 2022. Net loss attributable to the common stockholders for the six months ended June 30, 2023 includes (i) $23.1 million, or $0.11 per diluted share, for our share of a non-cash real estate impairment loss related to an unconsolidated joint venture, and (ii) non-cash straight-line rent receivable write-offs aggregating $13.0 million, or $0.06 per diluted share, related to the previously announced terminated SVB Securities lease and the surrendered JPMorgan space.

FFO attributable to common stockholders was $90.8 million, or $0.42 per diluted share, for the six months ended June 30, 2023, compared to $108.2 million, or $0.49 per diluted share, for the six months ended June 30, 2022. FFO attributable to common stockholders for the six months ended June 30, 2023 includes non-cash straight-line rent receivable write-offs aggregating $13.0 million, or $0.06 per diluted share, related to the previously announced terminated SVB Securities lease and the surrendered JPMorgan space. FFO attributable to common stockholders for the six months ended June 30, 2023 and 2022 also includes the impact of non-core items, which are listed in the table on page 10. The aggregate of the non-core items, net of amounts attributable to noncontrolling interests, decreased FFO attributable to common stockholders for the six months ended June 30, 2023 by $4.0 million, or $0.02 per diluted share and did not impact FFO attributable to common stockholders for the six months ended June 30, 2022. Core FFO attributable to common stockholders, which excludes the impact of the non-core items listed on page 10, was $94.8 million, or $0.44 per diluted share, for the six months ended June 30, 2023, compared to $108.2 million, or $0.49 per diluted share, for the six months ended June 30, 2022.

Portfolio Operations

Quarter Ended June 30, 2023

Same Store NOI decreased by $5.1 million, or 5.0%, to $97.3 million for the quarter ended June 30, 2023 from $102.4 million for the quarter ended June 30, 2022. Same Store Cash NOI decreased by $4.5 million, or 4.7%, to $91.8 million for the quarter ended June 30, 2023 from $96.3 million for the quarter ended June 30, 2022.

During the quarter ended June 30, 2023, the Company leased 71,847 square feet, of which the Company’s share was 57,404 square feet that was leased at a weighted average initial rent of $78.14 per square foot. This leasing activity, offset by lease expirations in the quarter, decreased leased occupancy and same store leased occupancy (properties owned by the Company in a similar manner during both reporting periods) by 20 basis points to 89.6% at June 30, 2023 from 89.8% at March 31, 2023. Of the 71,847 square feet leased in the second quarter, 34,514 square feet represented the Company’s share of second generation space for which mark-to-markets were 3.9% on a GAAP basis and negative 3.1% on a cash basis. The weighted average lease term for leases signed during the second quarter was 10.6 years and weighted average tenant improvements and leasing commissions on these leases were $12.16 per square foot per annum, or 15.6% of initial rent.

Six Months Ended June 30, 2023

Same Store NOI increased by $1.7 million, or 0.9%, to $199.7 million for the six months ended June 30, 2023 from $198.0 million for the six months ended June 30, 2022. Same Store Cash NOI decreased by $4.4 million, or 2.3%, to $187.2 million for the six months ended June 30, 2023 from $191.6 million for the six months ended June 30, 2022.

During the six months ended June 30, 2023, the Company leased 267,481 square feet, of which the Company’s share was 227,737 square feet that was leased at a weighted average initial rent of $81.18 per square foot. This leasing activity, offset by lease expirations in the six months, decreased leased occupancy and same store leased occupancy (properties owned by the Company in a similar manner during both reporting periods) by 170 basis points to 89.6% at June 30, 2023 from 91.3% at December 31, 2022. The 170 basis point decrease in leased occupancy was driven primarily by the scheduled expiration of Credit Agricole’s 305,132 square foot lease in February 2023, partially offset by O’Melveny & Myers’ 160,708 square foot lease; both of which were at 1301 Avenue of the Americas in the Company’s New York portfolio.

Of the 267,481 square feet leased in the six months, 178,396 square feet represented the Company’s share of second generation space for which mark-to-markets were 1.4% on a GAAP basis and negative 2.1% on a cash basis. The weighted average lease term for leases signed during the six months was 12.4 years and weighted average tenant improvements and leasing commissions on these leases were $12.64 per square foot per annum, or 15.6% of initial rent.

Guidance

The Company is updating its Estimated Core FFO Guidance for the full year of 2023, 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 $0.28 and $0.24 per diluted share, compared to its prior estimate of $0.11 and $0.07 per diluted share, an increase in net loss of $0.17 per diluted share at the midpoint of the Company’s prior estimate. This increase in net loss resulted primarily from (i) our share of a non-cash real estate impairment loss related to an unconsolidated joint venture of $0.11 per diluted share, (ii) non-cash straight-line rent receivable write-offs aggregating $0.06 per diluted share related to the terminated SVB Securities lease and the surrendered JPMorgan space, (iii) lower GAAP rental revenue in the second half of the year aggregating $0.02 per diluted share related to the terminated SVB Securities lease and the surrendered JPMorgan space, partially offset by (iv) termination income of $0.02 per diluted share in connection with a tenant’s lease termination at 1633 Broadway. The estimated net loss attributable to common stockholders per diluted share is not a projection and is being provided solely to satisfy the disclosure requirements of the U.S. Securities and Exchange Commission.

Based on the Company’s performance for the six months ended June 30, 2023 and its outlook for the remainder of 2023, the Company is updating its Estimated 2023 Core FFO to be between $0.84 and $0.88 per diluted share, compared to its prior estimate of $0.90 and $0.94 per diluted share. This represents a decrease of $0.06 per diluted share at the midpoint of the Company’s prior guidance, resulting primarily from (i) non-cash straight-line rent receivable write-offs aggregating $0.06 per diluted share related to the terminated SVB Securities lease and the surrendered JPMorgan space, (ii) lower GAAP rental revenue in the second half of the year aggregating $0.02 per diluted share related to the terminated SVB Securities lease and the surrendered JPMorgan space, partially offset by (iii) termination income of $0.02 per diluted share in connection with a tenant’s lease termination at 1633 Broadway.

							Full Year 2023
(Amounts per diluted share)							Low				High
Estimated net loss attributable to common stockholders							$	(0.28	)		$	(0.24	)
Pro rata share of real estate depreciation and amortization, including the Company's share of unconsolidated joint ventures								1.01				1.01
Pro rata share of non-cash real estate impairment loss related to an unconsolidated joint venture								0.11				0.11
Estimated Core FFO							$	0.84			$	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 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 rising 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 rising inflation and interest rates on such market conditions; the effects of acquisitions, dispositions and possible impairment charges on our operating results; the negative impact of any future pandemic, endemic or outbreak of infectious disease on the U.S., regional and global economies and our tenants’ financial condition and results of operations; regulatory changes, including changes to tax laws and regulations; and other risks and uncertainties detailed from time to time in 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 and adjustments, realized and unrealized gains or losses on real estate related fund investments, unrealized gains or losses on interest rate swaps, severance costs and gains or losses on early extinguishment of debt, in order to reflect the Core FFO of our real estate portfolio and operations. In future periods, we may also exclude other items from Core FFO that we believe may help investors compare our results.

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 the property level.

Same Store NOI is used to measure the operating performance of properties in our New York and San Francisco portfolios that were owned by the Company 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 June 30, 2023, which is available on our website.

Investor Conference Call and Webcast

The Company will host a conference call and audio webcast on Tuesday, August 1, 2023 at 9:00 a.m. Eastern Time (ET), during which management will discuss the second 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 August 1, 2023 through August 8, 2023 and can be accessed by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the passcode 13739420.

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 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:						June 30, 2023				December 31, 2022
Real estate, at cost:
Land						$	1,966,237			$	1,966,237
Buildings and improvements							6,199,074				6,177,540
							8,165,311				8,143,777
Accumulated depreciation and amortization							(1,377,917	)			(1,297,553	)
Real estate, net							6,787,394				6,846,224
Cash and cash equivalents							434,751				408,905
Restricted cash							72,680				40,912
Accounts and other receivables							13,692				23,866
Real estate related fund investments							66,606				105,369
Investments in unconsolidated real estate related funds							5,270				3,411
Investments in unconsolidated joint ventures							398,677				393,503
Deferred rent receivable							346,583				346,338
Deferred charges, net							113,271				120,685
Intangible assets, net							79,558				90,381
Other assets							49,497				73,660
Total assets						$	8,367,979			$	8,453,254
Liabilities:
Notes and mortgages payable, net						$	3,842,669			$	3,840,318
Revolving credit facility							-				-
Accounts payable and accrued expenses							113,449				123,176
Dividends and distributions payable							8,188				18,026
Intangible liabilities, net							31,960				36,193
Other liabilities							23,700				24,775
Total liabilities							4,019,966				4,042,488
Equity:
Paramount Group, Inc. equity							3,507,480				3,592,291
Noncontrolling interests in:
Consolidated joint ventures							407,647				402,118
Consolidated real estate related funds							183,988				173,375
Operating Partnership							248,898				242,982
Total equity							4,348,013				4,410,766
Total liabilities and equity						$	8,367,979			$	8,453,254

Paramount Group, Inc. Consolidated Statements of Income (Unaudited and in thousands, except share and per share amounts)
							For the Three Months Ended								For the Six Months Ended
							June 30,								June 30,
							2023				2022				2023				2022
Revenues:
	Rental revenue						$	165,506			$	177,243			$	347,219			$	347,165
	Fee and other income							7,156				8,274				13,917				22,037
		Total revenues						172,662				185,517				361,136				369,202
Expenses:
	Operating							71,078				67,814				141,387				134,475
	Depreciation and amortization							62,627				57,398				121,515				113,022
	General and administrative							16,224				16,706				30,847				32,351
	Transaction related costs							63				159				191				276
		Total expenses						149,992				142,077				293,940				280,124
Other income (expense):
	Loss from real estate related fund investments							(42,644	)			-				(39,094	)			-
	Income (loss) from unconsolidated real estate related funds							32				155				(146	)			325
	Loss from unconsolidated joint ventures							(28,402	)			(4,416	)			(34,164	)			(9,529	)
	Interest and other income, net							2,967				796				5,892				1,027
	Interest and debt expense							(36,879	)			(35,578	)			(73,338	)			(69,855	)
(Loss) income before income taxes								(82,256	)			4,397				(73,654	)			11,046
	Income tax expense							(573	)			(359	)			(861	)			(886	)
Net (loss) income								(82,829	)			4,038				(74,515	)			10,160
Less net (income) loss attributable to noncontrolling interests in:
	Consolidated joint ventures							(5,351	)			(4,779	)			(10,992	)			(8,204	)
	Consolidated real estate related funds							37,301				352				36,478				1,368
	Operating Partnership							3,341				29				3,220				(313	)
Net (loss) income attributable to common stockholders							$	(47,538	)		$	(360	)		$	(45,809	)		$	3,011
Per Share:
	Basic						$	(0.22	)		$	(0.00	)		$	(0.21	)		$	0.01
	Diluted						$	(0.22	)		$	(0.00	)		$	(0.21	)		$	0.01
Weighted average common shares outstanding:
	Basic							217,003,931				222,971,886				216,784,737				220,888,664
	Diluted							217,003,931				222,971,886				216,784,737				220,930,019

Paramount Group, Inc. Reconciliation of Net (Loss) Income to FFO and Core FFO (Unaudited and in thousands, except share and per share amounts)
							For the Three Months Ended								For the Six Months Ended
							June 30,								June 30,
							2023				2022				2023				2022
Reconciliation of Net (Loss) Income to FFO and Core FFO:
	Net (loss) income						$	(82,829	)		$	4,038			$	(74,515	)		$	10,160
	Real estate depreciation and amortization (including our share of unconsolidated joint ventures)							72,096				67,235				140,527				133,060
	Our share of a real estate impairment loss related to an unconsolidated joint venture							24,734				-				24,734				-
	FFO							14,001				71,273				90,746				143,220
	Less FFO attributable to noncontrolling interests in:
		Consolidated joint ventures						(14,889	)			(13,945	)			(30,064	)			(26,460	)
		Consolidated real estate related funds						37,295				346				36,465				1,355
	FFO attributable to Paramount Group Operating Partnership							36,407				57,674				97,147				118,115
	Less FFO attributable to noncontrolling interests in Operating Partnership							(2,390	)			(4,352	)			(6,351	)			(9,920	)
	FFO attributable to common stockholders						$	34,017			$	53,322			$	90,796			$	108,195
	Per diluted share						$	0.16			$	0.24			$	0.42			$	0.49
	FFO						$	14,001			$	71,273			$	90,746			$	143,220
	Non-core items:
		Adjustment to equity in earnings for contributions to
		(distributions from) unconsolidated joint ventures						(1,301	)			168				(2,623	)			(415	)
		Adjustments for realized and unrealized gains and losses on
		consolidated and unconsolidated real estate related fund investments						45,686				(29	)			47,021				18
		Other, net (including after-tax net gains or losses on sale of
		residential condominium units at One Steuart Lane)						659				671				3,196				2,050
	Core FFO							59,045				72,083				138,340				144,873
	Less Core FFO attributable to noncontrolling interests in:
		Consolidated joint ventures						(14,889	)			(13,945	)			(30,064	)			(26,460	)
		Consolidated real estate related funds						(2,773	)			(128	)			(6,800	)			(287	)
	Core FFO attributable to Paramount Group Operating Partnership							41,383				58,010				101,476				118,126
	Less Core FFO attributable to noncontrolling interests in Operating Partnership							(2,717	)			(4,377	)			(6,636	)			(9,915	)
	Core FFO attributable to common stockholders						$	38,666			$	53,633			$	94,840			$	108,211
	Per diluted share						$	0.18			$	0.24			$	0.44			$	0.49
Reconciliation of weighted average shares outstanding:
	Weighted average shares outstanding							217,003,931				222,971,886				216,784,737				220,888,664
	Effect of dilutive securities							11,089				26,594				31,669				41,355
	Denominator for FFO and Core FFO per diluted share							217,015,020				222,998,480				216,816,406				220,930,019

Paramount Group, Inc. Reconciliation of Net (Loss) Income to Same Store NOI and Same Store Cash NOI (Unaudited and in thousands)
						For the Three Months Ended								For the Six Months Ended
						June 30,								June 30,
						2023				2022				2023				2022
Reconciliation of Net (Loss) Income to Same Store NOI and Same Store Cash NOI:
	Net (loss) income					$	(82,829	)		$	4,038			$	(74,515	)		$	10,160
	Add (subtract) adjustments to arrive at NOI and Cash NOI:
		Depreciation and amortization					62,627				57,398				121,515				113,022
		General and administrative					16,224				16,706				30,847				32,351
		Interest and debt expense					36,879				35,578				73,338				69,855
		Income tax expense					573				359				861				886
		Loss from real estate related fund investments					42,644				-				39,094				-
		NOI from unconsolidated joint ventures (excluding One Steuart Lane)					10,720				11,585				21,101				22,819
		Loss from unconsolidated joint ventures					28,402				4,416				34,164				9,529
		Fee income					(4,976	)			(5,974	)			(9,533	)			(17,962	)
		Interest and other income, net					(2,967	)			(796	)			(5,892	)			(1,027	)
		Other, net					31				4				337				(49	)
	NOI						107,328				123,314				231,317				239,584
	Less NOI attributable to noncontrolling interests in:
		Consolidated joint ventures					(22,564	)			(21,796	)			(45,276	)			(42,118	)
	PGRE's share of NOI						84,764				101,518				186,041				197,466
		Lease termination income					(2,055	)			(157	)			(2,055	)			(1,875	)
		Non-cash write-offs of straight-line rent receivable					13,906				-				13,906				306
		Acquisitions / Redevelopment and other, net					686				1,057				1,765				2,065
	PGRE's share of Same Store NOI					$	97,301			$	102,418			$	199,657			$	197,962
	NOI					$	107,328			$	123,314			$	231,317			$	239,584
	Less:
		Straight-line rent adjustments (including our share of unconsolidated joint ventures)					7,515				(5,977	)			(176	)			(4,319	)
		Amortization of above and below-market leases, net (including our share of unconsolidated joint ventures)					(2,239	)			(1,128	)			(4,077	)			(2,325	)
	Cash NOI						112,604				116,209				227,064				232,940
	Less Cash NOI attributable to noncontrolling interests in:
		Consolidated joint ventures					(19,707	)			(20,693	)			(39,552	)			(41,206	)
	PGRE's share of Cash NOI						92,897				95,516				187,512				191,734
		Lease termination income					(2,055	)			(157	)			(2,055	)			(1,875	)
		Acquisitions / Redevelopment and other, net					948				989				1,701				1,738
	PGRE's share of Same Store Cash NOI					$	91,790			$	96,348			$	187,158			$	191,597

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230731300187/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.