PGRE Paramount Group Inc

–Completes $41.7 million of share repurchases through October–

Paramount Group, Inc. (NYSE: PGRE) (“Paramount” or the “Company”) filed its Quarterly Report on Form 10-Q for the quarter ended September 30, 2022 today and reported results for the third quarter ended September 30, 2022.

Third Quarter Highlights:

• Reported net loss attributable to common stockholders of $1.5 million, or $0.01 per diluted share, for the quarter ended September 30, 2022, compared to $2.1 million, or $0.01 per diluted share, for the quarter ended September 30, 2021.
• Reported Core Funds from Operations (“Core FFO”) attributable to common stockholders of $54.2 million, or $0.24 per diluted share, for the quarter ended September 30, 2022, compared to $50.1 million, or $0.23 per diluted share, for the quarter ended September 30, 2021.
• Updated its full year 2022 Earnings Guidance as follows:
  • Estimated net income attributable to common stockholders will be between $0.00 and $0.02 per diluted share, compared to its prior estimated range of net loss attributable to common stockholders of $0.01 per diluted share and net income of $0.03 per diluted share.
  • Estimated Core FFO attributable to common stockholders will be between $0.96 and $0.98 per diluted share, compared to its prior estimate of $0.95 and $0.99 per diluted share.
• Reported a 0.4% increase in Same Store Cash Net Operating Income (“NOI”) and a 6.3% increase in Same Store NOI in the quarter ended September 30, 2022, compared to the same period in the prior year.
• Leased 288,554 square feet, of which the Company’s share was 215,922 square feet that was leased at a weighted average initial rent of $82.76 per square foot. Of the 215,922 square feet that was leased, 204,178 square feet represented the Company’s share of second generation space, for which mark-to-markets were negative 10.5% on a cash basis and positive 2.7% on a GAAP basis.
• Declared a third quarter cash dividend of $0.0775 per common share on September 15, 2022, which was paid on October 14, 2022.
• Repurchased 6,498,232 common shares at a weighted average price of $6.41 per share, or $41.7 million in the aggregate through October 2022, of which 3,237,392 shares were repurchased in the third quarter, at a weighted average price of $6.58 per share, or $21.3 million in the aggregate.

Financial Results

Quarter Ended September 30, 2022

Net loss attributable to common stockholders was $1.5 million, or $0.01 per diluted share, for the quarter ended September 30, 2022, compared to $2.1 million, or $0.01 per diluted share, for the quarter ended September 30, 2021.

Funds from Operations (“FFO”) attributable to common stockholders was $53.4 million, or $0.24 per diluted share, for the quarter ended September 30, 2022, compared to $50.3 million, or $0.23 per diluted share, for the quarter ended September 30, 2021. FFO attributable to common stockholders for the quarters ended September 30, 2022 and 2021 includes the impact of certain non-core items, which are listed in the table on page 9. The aggregate of the non-core items, net of amounts attributable to noncontrolling interests, decreased FFO attributable to common stockholders for the quarter ended September 30, 2022 by $0.8 million, or $0.00 per diluted share and increased FFO attributable to common stockholders for the quarter ended September 30, 2021 by $0.2 million, or $0.00 per diluted share.

Core FFO attributable to common stockholders, which excludes the impact of the non-core items listed on page 9, was $54.2 million, or $0.24 per diluted share, for the quarter ended September 30, 2022, compared to $50.1 million, or $0.23 per diluted share, for the quarter ended September 30, 2021.

Nine Months Ended September 30, 2022

Net income attributable to common stockholders was $1.5 million, or $0.01 per diluted share, for the nine months ended September 30, 2022, compared to net loss attributable to common stockholders of $21.6 million, or $0.10 per diluted share, for the nine months ended September 30, 2021. Net loss attributable to common stockholders for the nine months ended September 30, 2021 includes a $10.7 million contribution to an unconsolidated joint venture that was expensed in accordance with GAAP.

FFO attributable to common stockholders was $161.6 million, or $0.73 per diluted share, for the nine months ended September 30, 2022, compared to $139.1 million, or $0.64 per diluted share, for the nine months ended September 30, 2021. FFO attributable to common stockholders for the nine months ended September 30, 2021 includes a $10.7 million contribution to an unconsolidated joint venture that was expensed in accordance with GAAP. FFO attributable to common stockholders for the nine months ended September 30, 2022 and 2021 also includes the impact of other non-core items, which are listed in the table on page 9. The aggregate of the non-core items, net of amounts attributable to noncontrolling interests decreased FFO attributable to common stockholders for the nine months ended September 30, 2022 and 2021 by $0.9 million and $9.1 million, respectively, or $0.00 and $0.04 per diluted share, respectively.

Core FFO attributable to common stockholders, which excludes the impact of the non-core items listed on page 9, was $162.5 million, or $0.73 per diluted share, for the nine months ended September 30, 2022, compared to $148.2 million, or $0.68 per diluted share, for the nine months ended September 30, 2021.

Portfolio Operations

Quarter Ended September 30, 2022

Same Store Cash NOI increased by $0.4 million, or 0.4%, to $96.7 million for the quarter ended September 30, 2022 from $96.3 million for the quarter ended September 30, 2021. Same Store NOI increased by $6.0 million, or 6.3%, to $102.2 million for the quarter ended September 30, 2022 from $96.2 million for the quarter ended September 30, 2021.

During the quarter ended September 30, 2022, the Company leased 288,554 square feet, of which the Company’s share was 215,922 square feet that was leased at a weighted average initial rent of $82.76 per square foot. This leasing activity, offset by lease expirations in the quarter, caused leased occupancy and same store leased occupancy (properties owned by the Company in a similar manner during both reporting periods) to remain at 91.4% leased at September 30, 2022, in-line with the leased occupancy reported at June 30, 2022. Of the 215,922 square feet leased, 204,178 square feet represented the Company’s share of second generation space (space that had been vacant for less than twelve months) for which mark-to-markets were negative 10.5% on a cash basis and positive 2.7% on a GAAP basis. The weighted average lease term for leases signed during the third quarter was 12.5 years and weighted average tenant improvements and leasing commissions on these leases were $11.92 per square foot per annum, or 14.4% of initial rent.

Nine Months Ended September 30, 2022

Same Store Cash NOI increased by $9.1 million, or 3.2%, to $289.5 million for the nine months ended September 30, 2022 from $280.4 million for the nine months ended September 30, 2021. Same Store NOI increased by $11.9 million, or 4.1%, to $301.2 million for the nine months ended September 30, 2022 from $289.3 million for the nine months ended September 30, 2021.

During the nine months ended September 30, 2022, the Company leased 741,605 square feet, of which the Company’s share was 556,299 square feet that was leased at a weighted average initial rent of $77.12 per square foot. This leasing activity, partially offset by lease expirations in the nine months, increased leased occupancy by 70 basis points to 91.4% at September 30, 2022 from 90.7% at December 31, 2021. Same store leased occupancy increased by 80 basis points to 91.4% at September 30, 2022 from 90.6% at December 31, 2021. Of the 556,299 square feet leased, 441,499 square feet represented the Company’s share of second generation space for which mark-to-markets were negative 6.6% on a cash basis and positive 1.3% on a GAAP basis. The weighted average lease term for leases signed during the nine months was 10.0 years and weighted average tenant improvements and leasing commissions on these leases were $10.72 per square foot per annum, or 13.9% of initial rent.

Guidance

The Company is updating its Estimated Core FFO Guidance for the full year of 2022, which is reconciled below to estimated net income attributable to common stockholders per diluted share in accordance with GAAP. The Company estimates that net income attributable to common stockholders will be between $0.00 and $0.02 per diluted share, compared to its prior estimated range of net loss attributable to common stockholders of $0.01 per diluted share and net income of $0.03 per diluted share. The estimated net income 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 nine months ended September 30, 2022, and its outlook for the remainder of 2022, the Company is updating its Estimated 2022 Core FFO to be between $0.96 and $0.98 per diluted share, compared to its prior estimate of $0.95 and $0.99 per diluted share.

 

 

 

 

 

 

 

Full Year 2022

 

(Amounts per diluted share)

Low

 

 

High

 

Estimated net income attributable to common stockholders

$

0.00

 

 

$

0.02

 

Pro rata share of real estate depreciation and amortization, including the Company's share of unconsolidated joint ventures

 

0.96

 

 

 

0.96

 

Estimated Core FFO

$

0.96

 

 

$

0.98

 

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 6. 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 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. 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; 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; 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 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 September 30, 2022, which is available on our website.

Investor Conference Call and Webcast

The Company will host a conference call and audio webcast on Thursday, October 27, 2022 at 10:00 a.m. Eastern Time (ET), during which management will discuss the third 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 October 27, 2022 through November 3, 2022 and can be accessed by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the passcode 13733036.

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:

 

September 30, 2022

 

 

December 31, 2021

 

Real estate, at cost:

 

 

 

 

 

 

Land

 

$

1,966,237

 

 

$

1,966,237

 

Buildings and improvements

 

 

6,152,652

 

 

 

6,061,824

 

 

 

 

8,118,889

 

 

 

8,028,061

 

Accumulated depreciation and amortization

 

 

(1,248,059

)

 

 

(1,112,977

)

Real estate, net

 

 

6,870,830

 

 

 

6,915,084

 

Cash and cash equivalents

 

 

469,398

 

 

 

524,900

 

Restricted cash

 

 

40,456

 

 

 

4,766

 

Investments in unconsolidated joint ventures

 

 

428,785

 

 

 

408,096

 

Investments in unconsolidated real estate funds

 

 

14,558

 

 

 

11,421

 

Accounts and other receivables

 

 

19,865

 

 

 

15,582

 

Deferred rent receivable

 

 

340,540

 

 

 

332,735

 

Deferred charges, net

 

 

123,864

 

 

 

122,177

 

Intangible assets, net

 

 

97,371

 

 

 

119,413

 

Other assets

 

 

90,813

 

 

 

40,388

 

Total assets

 

$

8,496,480

 

 

$

8,494,562

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

Notes and mortgages payable, net

 

$

3,839,144

 

 

$

3,835,620

 

Revolving credit facility

 

 

-

 

 

 

-

 

Accounts payable and accrued expenses

 

 

152,371

 

 

 

116,192

 

Dividends and distributions payable

 

 

18,564

 

 

 

16,895

 

Intangible liabilities, net

 

 

39,037

 

 

 

45,328

 

Other liabilities

 

 

24,171

 

 

 

25,495

 

Total liabilities

 

 

4,073,287

 

 

 

4,039,530

 

Equity:

 

 

 

 

 

 

Paramount Group, Inc. equity

 

 

3,674,363

 

 

 

3,588,163

 

Noncontrolling interests in:

 

 

 

 

 

 

Consolidated joint ventures

 

 

407,402

 

 

 

428,833

 

Consolidated real estate fund

 

 

79,248

 

 

 

81,925

 

Operating Partnership

 

 

262,180

 

 

 

356,111

 

Total equity

 

 

4,423,193

 

 

 

4,455,032

 

Total liabilities and equity

 

$

8,496,480

 

 

$

8,494,562

 

 

 

Paramount Group, Inc.

Consolidated Statements of Income

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

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

 

 

 

 

 

 

September 30,

 

 

September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental revenue

 

$

179,250

 

 

$

170,851

 

 

$

526,415

 

 

$

518,625

 

 

Fee and other income

 

 

7,897

 

 

 

8,280

 

 

 

29,934

 

 

 

23,941

 

 

 

Total revenues

 

 

187,147

 

 

 

179,131

 

 

 

556,349

 

 

 

542,566

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating

 

 

72,845

 

 

 

67,131

 

 

 

207,320

 

 

 

197,821

 

 

Depreciation and amortization

 

 

58,284

 

 

 

57,522

 

 

 

171,306

 

 

 

175,752

 

 

General and administrative

 

 

13,150

 

 

 

13,257

 

 

 

45,501

 

 

 

46,039

 

 

Transaction related costs

 

 

105

 

 

 

87

 

 

 

381

 

 

 

503

 

 

 

Total expenses

 

 

144,384

 

 

 

137,997

 

 

 

424,508

 

 

 

420,115

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income from unconsolidated joint ventures

 

 

(5,797

)

 

 

223

 

 

 

(15,326

)

 

 

(20,810

)

 

Income from unconsolidated real estate funds

 

 

300

 

 

 

276

 

 

 

625

 

 

 

604

 

 

Interest and other income, net

 

 

1,580

 

 

 

138

 

 

 

2,607

 

 

 

2,510

 

 

Interest and debt expense

 

 

(36,949

)

 

 

(36,266

)

 

 

(106,804

)

 

 

(105,919

)

Income (loss) before income taxes

 

1,897

 

 

 

5,505

 

 

 

12,943

 

 

 

(1,164

)

 

Income tax expense

 

 

(673

)

 

 

(873

)

 

 

(1,559

)

 

 

(2,448

)

Net income (loss)

 

 

1,224

 

 

 

4,632

 

 

 

11,384

 

 

 

(3,612

)

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated joint ventures

 

 

(4,179

)

 

 

(3,768

)

 

 

(12,383

)

 

 

(16,924

)

 

Consolidated real estate fund

 

 

1,309

 

 

 

(3,123

)

 

 

2,677

 

 

 

(3,179

)

 

Operating Partnership

 

 

109

 

 

 

204

 

 

 

(204

)

 

 

2,139

 

Net (loss) income attributable to common stockholders

 

$

(1,537

)

 

$

(2,055

)

 

$

1,474

 

 

$

(21,576

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.01

)

 

$

(0.01

)

 

$

0.01

 

 

$

(0.10

)

Diluted

 

$

(0.01

)

 

$

(0.01

)

 

$

0.01

 

 

$

(0.10

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

224,864,791

 

 

 

218,706,356

 

 

 

222,228,605

 

 

 

218,689,696

 

Diluted

 

 

224,864,791

 

 

 

218,706,356

 

 

 

222,262,748

 

 

 

218,689,696

 

 

Paramount Group, Inc.

Reconciliation of Net Income (Loss) to FFO and Core FFO

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

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

 

 

 

 

 

 

September 30,

 

 

September 30,

 

 

 

 

 

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Reconciliation of Net Income (Loss) to FFO and Core FFO:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

1,224

 

 

$

4,632

 

 

$

11,384

 

 

$

(3,612

)

 

Real estate depreciation and amortization (including our

 

 

 

 

 

 

 

 

 

 

 

 

 

 

share of unconsolidated joint ventures)

 

 

68,009

 

 

 

67,717

 

 

 

201,069

 

 

 

207,122

 

 

FFO

 

 

69,233

 

 

 

72,349

 

 

 

212,453

 

 

 

203,510

 

 

Less FFO attributable to noncontrolling interests in:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated joint ventures

 

 

(13,408

)

 

 

(13,895

)

 

 

(39,868

)

 

 

(47,422

)

 

 

Consolidated real estate fund

 

 

1,304

 

 

 

(3,127

)

 

 

2,659

 

 

 

(3,183

)

 

FFO attributable to Paramount Group Operating Partnership

 

 

57,129

 

 

 

55,327

 

 

 

175,244

 

 

 

152,905

 

 

Less FFO attributable to noncontrolling interests in

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Partnership

 

 

(3,763

)

 

 

(5,009

)

 

 

(13,683

)

 

 

(13,770

)

 

FFO attributable to common stockholders

 

$

53,366

 

 

$

50,318

 

 

$

161,561

 

 

$

139,135

 

 

Per diluted share

 

$

0.24

 

 

$

0.23

 

 

$

0.73

 

 

$

0.64

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO

 

$

69,233

 

 

$

72,349

 

 

$

212,453

 

 

$

203,510

 

 

Non-core items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustment to equity in earnings for contributions to

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(distributions from) an unconsolidated joint venture

 

 

709

 

 

 

(938

)

 

 

294

 

 

 

8,977

 

 

 

FFO attributable to One Steuart Lane, including after-tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

net gain on sale of residential condominium units

 

 

1,509

 

 

 

(3,267

)

 

 

3,283

 

 

 

(3,267

)

 

 

Non-cash write-off of deferred financing costs

 

 

-

 

 

 

761

 

 

 

-

 

 

 

761

 

 

 

Other, net

 

 

126

 

 

 

53

 

 

 

420

 

 

 

432

 

 

Core FFO

 

 

71,577

 

 

 

68,958

 

 

 

216,450

 

 

 

210,413

 

 

Less Core FFO attributable to noncontrolling interests in:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated joint ventures

 

 

(13,408

)

 

 

(13,895

)

 

 

(39,868

)

 

 

(47,422

)

 

 

Consolidated real estate fund

 

 

(94

)

 

 

(9

)

 

 

(381

)

 

 

(65

)

 

Core FFO attributable to Paramount Group Operating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Partnership

 

 

58,075

 

 

 

55,054

 

 

 

176,201

 

 

 

162,926

 

 

Less Core FFO attributable to noncontrolling interests in

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Partnership

 

 

(3,826

)

 

 

(4,985

)

 

 

(13,741

)

 

 

(14,677

)

 

Core FFO attributable to common stockholders

 

$

54,249

 

 

$

50,069

 

 

$

162,460

 

 

$

148,249

 

 

Per diluted share

 

$

0.24

 

 

$

0.23

 

 

$

0.73

 

 

$

0.68

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

 

224,864,791

 

 

 

218,706,356

 

 

 

222,228,605

 

 

 

218,689,696

 

 

Effect of dilutive securities

 

 

28,555

 

 

 

44,880

 

 

 

34,143

 

 

 

41,461

 

 

Denominator for FFO and Core FFO per diluted share

 

 

224,893,346

 

 

 

218,751,236

 

 

 

222,262,748

 

 

 

218,731,157

 

 

Paramount Group, Inc.

Reconciliation of Net Income (Loss) to Same Store NOI and Same Store Cash NOI

(Unaudited and in thousands)

 

 

 

 

 

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

 

 

 

 

 

September 30,

 

 

September 30,

 

 

 

 

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Reconciliation of Net Income (Loss) to Same Store NOI and Same Store Cash NOI:

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

1,224

 

 

$

4,632

 

 

$

11,384

 

 

$

(3,612

)

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

58,284

 

 

 

57,522

 

 

 

171,306

 

 

 

175,752

 

 

 

General and administrative

 

13,150

 

 

 

13,257

 

 

 

45,501

 

 

 

46,039

 

 

 

Interest and debt expense

 

36,949

 

 

 

36,266

 

 

 

106,804

 

 

 

105,919

 

 

 

Income tax expense

 

673

 

 

 

873

 

 

 

1,559

 

 

 

2,448

 

 

 

NOI from unconsolidated joint ventures (excluding One Steuart Lane)

 

11,540

 

 

 

11,627

 

 

 

34,359

 

 

 

32,510

 

 

 

Loss (income) from unconsolidated joint ventures

 

5,797

 

 

 

(223

)

 

 

15,326

 

 

 

20,810

 

 

 

Fee income

 

(5,132

)

 

 

(6,561

)

 

 

(23,094

)

 

 

(19,432

)

 

 

Interest and other income, net

 

(1,580

)

 

 

(138

)

 

 

(2,607

)

 

 

(2,510

)

 

 

Other, net

 

(195

)

 

 

(189

)

 

 

(244

)

 

 

(101

)

 

NOI

 

120,710

 

 

 

117,066

 

 

 

360,294

 

 

 

357,823

 

 

Less NOI attributable to noncontrolling interests in:

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated joint ventures

 

(21,222

)

 

 

(21,809

)

 

 

(63,340

)

 

 

(70,767

)

 

 

Consolidated real estate fund

 

-

 

 

 

-

 

 

 

-

 

 

 

206

 

 

PGRE's share of NOI

 

99,488

 

 

 

95,257

 

 

 

296,954

 

 

 

287,262

 

 

 

Acquisitions / Redevelopment

 

(155

)

 

 

(693

)

 

 

(366

)

 

 

(924

)

 

 

Lease termination income

 

-

 

 

 

(33

)

 

 

(1,875

)

 

 

(1,745

)

 

 

Other, net

 

2,893

 

 

 

1,642

 

 

 

6,470

 

 

 

4,686

 

 

PGRE's share of Same Store NOI

$

102,226

 

 

$

96,173

 

 

$

301,183

 

 

$

289,279

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOI

$

120,710

 

 

$

117,066

 

 

$

360,294

 

 

$

357,823

 

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

Straight-line rent adjustments (including our share of unconsolidated joint ventures)

 

(3,969

)

 

 

1,260

 

 

 

(8,288

)

 

 

(9,800

)

 

 

Amortization of above and below-market leases, net (including our share of unconsolidated joint ventures)

 

(790

)

 

 

(1,622

)

 

 

(3,115

)

 

 

(5,087

)

 

Cash NOI

 

115,951

 

 

 

116,704

 

 

 

348,891

 

 

 

342,936

 

 

Less Cash NOI attributable to noncontrolling interests in:

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated joint ventures

 

(19,988

)

 

 

(21,174

)

 

 

(61,194

)

 

 

(64,313

)

 

 

Consolidated real estate fund

 

-

 

 

 

-

 

 

 

-

 

 

 

206

 

 

PGRE's share of Cash NOI

 

95,963

 

 

 

95,530

 

 

 

287,697

 

 

 

278,829

 

 

 

Acquisitions / Redevelopment

 

(154

)

 

 

(861

)

 

 

(396

)

 

 

(1,148

)

 

 

Lease termination income

 

-

 

 

 

(33

)

 

 

(1,875

)

 

 

(1,745

)

 

 

Other, net

 

894

 

 

 

1,672

 

 

 

4,105

 

 

 

4,507

 

 

PGRE's share of Same Store Cash NOI

$

96,703

 

 

$

96,308

 

 

$

289,531

 

 

$

280,443

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20221026005919/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