PGRE Paramount Group Inc

– Initiates Guidance for Full Year 2025 –

Paramount Group, Inc. (NYSE: PGRE) (“Paramount” or the “Company”) filed its Annual Report on Form 10-K for the year ended December 31, 2024 today and reported results for the fourth quarter ended December 31, 2024.

Fourth Quarter Highlights:

Results of Operations:

• Reported net loss attributable to common stockholders of $38.6 million, or $0.18 per diluted share, for the quarter ended December 31, 2024, compared to $205.6 million, or $0.95 per diluted share, for the quarter ended December 31, 2023. Net loss attributable to common stockholders for the quarter ended December 31, 2024 includes $30.9 million, or $0.14 per diluted share, for our share of non-cash real estate impairment losses related to investments in unconsolidated joint ventures. Net loss attributable to common stockholders for the quarter ended December 31, 2023 includes (i) $185.0 million, or $0.85 per diluted share, for our share of non-cash real estate impairment losses related to investments in unconsolidated joint ventures and (ii) $7.3 million, or $0.03 per diluted share, for our share of realized and unrealized losses on consolidated real estate related fund investments.
• Reported Core Funds from Operations (“Core FFO”) attributable to common stockholders of $41.2 million, or $0.19 per diluted share, for the quarter ended December 31, 2024, compared to $47.4 million, or $0.22 per diluted share, for the quarter ended December 31, 2023.
• Reported a 0.4% decrease in Same Store Net Operating Income (“NOI”) and a 0.1% 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 per square foot. Of the 108,824 square feet leased, 75,821 square feet represented the Company’s share of second generation space(1), for which mark-to-markets were negative 7.2% on a GAAP basis and negative 11.1% 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 and modified its credit facility to, among other things, (i) reduce the aggregate unencumbered asset value of all unencumbered eligible properties from $900.0 million to $500.0 million, (ii) increase the secured leverage ratio as of the last day of any relevant fiscal quarter from 50% to 60%, and (iii) limit borrowings under the credit facility to $200.0 million, through June 30, 2025.
• 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 in New York City, at a gross asset valuation of $210.0 million, retaining net proceeds of approximately $94.0 million, of which $9.4 million was received in the fourth quarter and the balance was received at closing.

___________________________

(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 $38.6 million, or $0.18 per diluted share, for the quarter ended December 31, 2024, compared to $205.6 million, or $0.95 per diluted share, for the quarter ended December 31, 2023. Net loss attributable to common stockholders for the quarter ended December 31, 2024 includes $30.9 million, or $0.14 per diluted share, for our share of non-cash real estate impairment losses related to investments in unconsolidated joint ventures. Net loss attributable to common stockholders for the quarter ended December 31, 2023 includes (i) $185.0 million, or $0.85 per diluted share, for our share of non-cash real estate impairment losses related to investments in unconsolidated joint ventures and (ii) $7.3 million, or $0.03 per diluted share, for our share of realized and unrealized losses on consolidated real estate related fund investments.

Funds from Operations (“FFO”) attributable to common stockholders was $36.3 million, or $0.17 per diluted share, for the quarter ended December 31, 2024, compared to $40.5 million, or $0.19 per diluted share, for the quarter ended December 31, 2023. FFO attributable to common stockholders for the quarters ended December 31, 2024 and 2023 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 quarters ended December 31, 2024 and 2023 by $4.9 million and $6.9 million, respectively, or $0.02 and $0.03 per diluted share, respectively.

Core FFO attributable to common stockholders, which excludes the impact of the non-core items listed on page 10, was $41.2 million, or $0.19 per diluted share, for the quarter ended December 31, 2024, compared to $47.4 million, or $0.22 per diluted share, for the quarter ended December 31, 2023.

Year Ended December 31, 2024

Net loss attributable to common stockholders was $46.3 million, or $0.21 per diluted share, for the year ended December 31, 2024, compared to $259.7 million, or $1.20 per diluted share, for the year ended December 31, 2023. Net loss attributable to common stockholders for the year ended December 31, 2024 includes (i) $30.9 million, or $0.14 per diluted share, for our share of non-cash real estate impairment losses related to investments in unconsolidated joint ventures, and (ii) $14.1 million, or $0.07 per diluted share, of a non-cash gain on extinguishment of a tax liability related to the Company’s initial public offering. Net loss attributable to common stockholders for the year ended December 31, 2023 includes (i) $208.1 million, or $0.96 per diluted share, for our share of non-cash real estate impairment losses related to investments in unconsolidated joint ventures, (ii) non-cash straight-line rent receivable write-offs aggregating $13.0 million, or $0.06 per diluted share, related to the terminated SVB Securities lease at 1301 Avenue of the Americas and the surrendered JPMorgan Chase space at One Front Street and (iii) $13.0 million, or $0.06 per diluted share, for our share of realized and unrealized losses on consolidated real estate related fund investments.

FFO attributable to common stockholders was $178.8 million, or $0.82 per diluted share, for the year ended December 31, 2024, compared to $178.0 million, or $0.82 per diluted share, for the year ended December 31, 2023. FFO attributable to common stockholders for the year ended December 31, 2024 includes $14.1 million, or $0.07 per diluted share, of a non-cash gain on extinguishment of a tax liability related to the Company’s initial public offering. FFO attributable to common stockholders for the year ended December 31, 2023 includes non-cash straight-line rent receivable write-offs aggregating $13.0 million, or $0.06 per diluted share, related to the terminated SVB Securities lease at 1301 Avenue of the Americas and the surrendered JPMorgan Chase space at One Front Street. FFO attributable to common stockholders for the years ended December 31, 2024 and 2023 also includes the impact of other 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, increased FFO attributable to common stockholders for the year ended December 31, 2024 by $5.7 million, or $0.02 per diluted share, and decreased FFO attributable to common stockholders for the year ended December 31, 2023 by $8.8 million, or $0.04 per diluted share.

Core FFO attributable to common stockholders, which excludes the impact of the non-core items listed on page 10, was $173.1 million, or $0.80 per diluted share, for the year ended December 31, 2024, compared to $186.8 million, or $0.86 per diluted share, for the year ended December 31, 2023.

Portfolio Operations

Quarter Ended December 31, 2024

Same Store NOI decreased by $0.4 million, or 0.4%, to $91.3 million for the quarter ended December 31, 2024 from $91.7 million for the quarter ended December 31, 2023. Same Store Cash NOI decreased by $0.1 million, or 0.1%, to $87.3 million for the quarter ended December 31, 2024 from $87.4 million for the quarter ended December 31, 2023.

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 $85.65 per square foot. This leasing activity, offset by lease expirations in the quarter, increased same store leased occupancy by 10 basis points to 84.8% at December 31, 2024 from 84.7% at September 30, 2024.

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 7.2% on a GAAP basis and negative 11.1% on a cash basis. The weighted average lease term for leases signed during the fourth quarter was 11.1 years and weighted average tenant improvements and leasing commissions on these leases were $15.74 per square foot per annum, or 18.4% of initial rent.

Year Ended December 31, 2024

Same Store NOI decreased by $3.3 million, or 0.9%, to $366.9 million for the year ended December 31, 2024 from $370.2 million for the year ended December 31, 2023. Same Store Cash NOI decreased by $3.9 million, or 1.1%, to $348.8 million for the year ended December 31, 2024 from $352.7 million for the year ended December 31, 2023.

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 $76.50 per square foot. This leasing activity, offset by lease expirations during the year, decreased same store leased occupancy by 530 basis points to 84.8% at December 31, 2024 from 90.1% at December 31, 2023. The decrease in same store leased occupancy was driven primarily by the scheduled expiration of Clifford Chance’s lease in June 2024 at 31 West 52nd Street in the Company’s New York portfolio.

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 8.2% on a GAAP basis and negative 6.5% on a cash basis. The weighted average lease term for leases signed during the year was 8.6 years and weighted average tenant improvements and leasing commissions on these leases were $11.90 per square foot per annum, or 15.6% of initial rent.

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 $0.36 and $0.30 per diluted share. 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.

The Company estimates that 2025 Core FFO will be between $0.51 and $0.57 per diluted share. The estimated Core FFO of $0.54 per diluted share, at the midpoint of the Company’s guidance for 2025, when compared to actual Core FFO of $0.80 per diluted share for 2024, assumes, among other items, decreases and increases in the Company’s share of the following components: (i) a decrease in Cash NOI of $0.17 per diluted share (resulting primarily from the expiration of two of the Company’s largest tenants’ leases in 2025), (ii) a decrease in non-cash straight-line rent and amortization of above and below-market lease revenue, net of $0.04 per diluted share, (iii) a decrease of $0.02 per diluted share from the disposition of a 45.0% equity interest in 900 Third Avenue in January 2025, (iv) a decrease in fee and other income of $0.02 per diluted share, (v) a decrease in lease termination income of $0.01 per diluted share and (vi) an increase in interest and debt expense of $0.01 per diluted share, partially offset by, (vii) a decrease in general and administrative expenses of $0.01 per diluted share.

 

 

 

 

 

 

 

Full Year 2025

 

(Amounts per diluted share)

Low

 

 

High

 

Estimated net loss attributable to common stockholders

$

(0.36

)

 

$

(0.30

)

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

 

0.87

 

 

 

0.87

 

Estimated FFO / Core FFO

$

0.51

 

 

$

0.57

 

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 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 accounting principles generally accepted in the United States of America (“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 related fund investments, unrealized gains or losses on interest rate swaps, severance costs, gains or losses on early extinguishment of debt and other non-core adjustments, 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 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 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.

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 New York City, Paramount Group, Inc. is a fully-integrated real estate investment trust that owns, operates, manages, acquires and redevelops high-quality, Class A office properties located in select central business district submarkets of New York City and San Francisco. Paramount is focused on maximizing the value of its portfolio by leveraging the sought-after locations of its assets and its proven property management capabilities to attract and retain high-quality tenants.

Paramount Group, Inc.

Consolidated Balance Sheets

(Unaudited and in thousands)

 

Assets:

 

December 31, 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

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

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:

 

 

 

 

 

 

Paramount Group, Inc. equity

 

 

3,141,277

 

 

 

3,203,285

 

Noncontrolling interests in:

 

 

 

 

 

 

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)

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

For the Year Ended

 

 

 

 

 

 

 

 

December 31,

 

 

December 31,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

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