EX-99.2

EX-99.2 3 d730022dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

LOGO

SUPPLEMENTAL OPERATING AND FINANCIAL DATA

FOR THE QUARTER ENDED MARCH 31, 2019


		FORWARD-LOOKING STATEMENTS

This supplemental information 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 our 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 uncertainties of real estate development, acquisition and disposition activity, the ability to effectively integrate acquisitions, the costs and availability of financing, the ability of our joint venture partners to satisfy their obligations, the effects of local, national and international economic and market conditions, the effects of acquisitions, dispositions and possible impairment charges on our operating results, regulatory changes, including changes to tax laws and regulations, and other risks and uncertainties detailed from time to time in our filings with the U.S. Securities and Exchange Commission. We do not undertake a duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

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		TABLE OF CONTENTS


	Page
Company Profile		4

Research Coverage		5

Selected Financial Information
Guidance		6
Financial Highlights		7
Consolidated Balance Sheets		8
Consolidated Statements of Income		9
Select Income Statement Data		10
Funds From Operations (“FFO”)		11
Funds Available for Distribution (“FAD”)		12
Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (“EBITDAre”)		13
Net Operating Income (“NOI”)		14 - 15
Same Store Results		16 - 17
Consolidated Joint Ventures and Fund		18 - 19
Unconsolidated Joint Ventures		20 - 21
Unconsolidated Funds Summary		22
Capital Structure		23
Debt Analysis		24
Debt Maturities		25

Selected Property Data
Portfolio Summary		26
Same Store Leased Occupancy		27
Top Tenants and Industry Diversification		28
Leasing Activity		29
Lease Expirations		30 - 33
Cash Basis Capital Expenditures		34

Definitions		35 - 36

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		COMPANY PROFILE

Paramount Group, Inc. (“Paramount”) or the (“Company”) 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, San Francisco, and Washington, D.C. 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.

EXECUTIVE MANAGEMENT


Albert Behler		Chairman, Chief Executive Officer and President
Wilbur Paes		Executive Vice President, Chief Financial Officer and Treasurer
Peter Brindley		Executive Vice President, Leasing
David Zobel		Executive Vice President, Head of Acquisitions

BOARD OF DIRECTORS


Albert Behler		Director, Chairman of the Board
Thomas Armbrust		Director
Martin Bussmann		Director
Dan Emmett		Director, Chair of Nominating and Corporate Governance Committee; Lead Independent Director
Lizanne Galbreath		Director, Chair of Compensation Committee
Karin Klein		Director
Peter Linneman		Director, Chair of Audit Committee
Katharina Otto-Bernstein		Director
Mark Patterson		Director

COMPANY INFORMATION


Corporate Headquarters	Investor Relations	Stock Exchange Listing	Trading Symbol
1633 Broadway, Suite 1801	IR@paramount-group.com	New York Stock Exchange	PGRE
New York, NY 10019	(212) 492-2298
(212) 237-3100

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		RESEARCH COVERAGE⁽¹⁾


James Feldman	Thomas Catherwood	Derek Johnston	Steve Sakwa
Bank of America Merrill Lynch	BTIG	Deutsche Bank	Evercore ISI
(646) 855-5808	(212) 738-6140	(904) 520-4973	(212) 446-9462
james.feldman@baml.com	tcatherwood@btig.com	derek.johnston@db.com	steve.sakwa@evercoreisi.com

Andrew Rosivach	Daniel Ismail	Haendel St. Juste	Vikram Malhotra
Goldman Sachs	Green Street Advisors	Mizuho Securities USA Inc.	Morgan Stanley
(212) 902-2796	(949) 640-8780	(212) 205-7860	(212) 761-7064
andrew.rosivach@gs.com	dismail@greenst.com	haendel.st.juste@us.mizuho-sc.com	vikram.malhotra@morganstanley.com

Blaine Heck
Wells Fargo
(443) 263-6529
blaine.heck@wellsfargo.com

⁽¹⁾

With the exception of Green Street Advisors, an independent research firm, the equity analysts listed above are those analysts that, according to First Call Corporation, have published research material on the Company and are listed as covering the Company. Please note that any opinions, estimates or forecasts regarding the Company’s performance made by such analysts do not represent the opinions, estimates or forecasts of the Company or its management. The Company does not by its reference above, imply its endorsement of or concurrence with any information, conclusions or recommendations made by any such analysts.

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		GUIDANCE

(unaudited and in thousands, except square feet, % and per share amounts)


	Full Year 2019
(Amounts per diluted share)	Low			High
Estimated net income attributable to common stockholders	$	0.01		$	0.05
Our share of real estate depreciation and amortization		0.89			0.89

Estimated Core FFO ⁽¹⁾	$	0.90		$	0.94

Operating Assumptions:
Leasing Activity (square feet)		800,000			1,000,000
PGRE’s share of Same Store Leased % ⁽²⁾ at year end		96.0	%		97.0	%
Increase in PGRE’s share of Same Store Cash NOI ⁽²⁾		7.0	%		9.0	%
Increase in PGRE’s share of Same Store NOI ⁽²⁾		3.0	%		5.0	%
Financial Assumptions (at share):
Estimated net income	$	4,000		$	13,000
Depreciation and amortization		230,000			230,000
General and administrative expenses		64,000			62,000
Interest and debt expense, including amortization of deferred financing costs		134,500			133,500
Fee income, net of income taxes		(16,500	)		(16,500	)
Other, net (primarily interest income)		(4,000	)		(4,000	)

NOI ⁽²⁾		412,000			418,000
Straight-line rent adjustments and above and below-market lease revenue, net		(45,000	)		(47,000	)

Cash NOI ⁽²⁾	$	367,000		$	371,000

⁽¹⁾

We are increasing our Estimated Core FFO Guidance for the full year of 2019, which is reconciled above to estimated net income attributable to common stockholders per diluted share in accordance with GAAP. 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. 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 our earnings release issued on May 1, 2019 and otherwise referenced during our conference call scheduled for May 2, 2019. These estimates do not include the impact on operating results from possible future property acquisitions or dispositions, capital markets activity or realized and unrealized gains or losses on real estate fund investments. The estimates set forth above may be subject to fluctuations as a result of several factors, including straight-line rent adjustments and the amortization of above and below-market leases. There can be no assurance that our actual results will not differ materially from the estimates set forth above.

⁽²⁾	See page 35 for our definition of this measure.

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		FINANCIAL HIGHLIGHTS

(unaudited and in thousands, except per share amounts)


	Three Months Ended
SELECTED FINANCIAL DATA	March 31, 2019		March 31, 2018		December 31, 2018
Net income attributable to common stockholders	$	3,709	$	1,114	$	5,318
Per share - basic and diluted	$	0.02	$	0.00	$	0.02
Core FFO attributable to common stockholders⁽¹⁾	$	57,113	$	54,963	$	59,290
Per share - diluted	$	0.24	$	0.23	$	0.25
PGRE’s share of Cash NOI ⁽¹⁾	$	93,069	$	85,947	$	92,761
PGRE’s share of NOI ⁽¹⁾	$	104,943	$	100,580	$	106,294


Same Store Cash NOI	% Change
Three Months Ended March 31, 2019 vs. March 31, 2018		11.3	%


Same Store Cash NOI	% Change
Three Months Ended March 31, 2019 vs. March 31, 2018		6.9	%

PORTFOLIO STATISTICS (at PGRE Share)


	As of
	March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018			March 31, 2018
Leased % ⁽¹⁾		96.0	%		96.4	%		96.4	%		96.4	%		94.0	%


Same Store Leased %	% Change
March 31, 2019 vs. December 31, 2018		0.0	%


Same Store Leased %	% Change
March 31, 2019 vs. March 31, 2018		2.6	%

COMMON SHARE DATA


	Three Months Ended
	March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018			March 31, 2018
Share Price:
High	$	15.03		$	15.16		$	16.05		$	15.63		$	15.89
Low	$	12.18		$	12.19		$	14.83		$	13.85		$	13.70
Closing (end of period)	$	14.19		$	12.56		$	15.09		$	15.40		$	14.24

Dividends per common share	$	0.10		$	0.10		$	0.10		$	0.10		$	0.10
Annualized dividends per common share	$	0.40		$	0.40		$	0.40		$	0.40		$	0.40
Dividend yield (on closing share price)		2.8	%		3.2	%		2.7	%		2.6	%		2.8	%

⁽¹⁾	See page 35 for our definition of this measure.

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		CONSOLIDATED BALANCE SHEETS

(unaudited and in thousands)


	March 31, 2019			December 31, 2018
Assets:
Real estate, at cost:
Land	$	2,065,206		$	2,065,206
Buildings and improvements		6,064,321			6,036,445

		8,129,527			8,101,651
Accumulated depreciation and amortization		(689,860	)		(644,639	)

Real estate, net		7,439,667			7,457,012
Cash and cash equivalents		342,308			339,653
Restricted cash		18,163			25,756
Investments in unconsolidated joint ventures		136,426			78,863
Investments in unconsolidated real estate funds		8,163			10,352
Preferred equity investments		—			36,042
Accounts and other receivables, net		20,136			20,076
Deferred rent receivable		279,036			267,456
Deferred charges, net		119,191			117,858
Intangible assets, net		254,354			270,445
Other assets		104,193			132,465

Total assets	$	8,721,637		$	8,755,978

Liabilities:
Notes and mortgages payable, net	$	3,568,933		$	3,566,917
Revolving credit facility		—			—
Accounts payable and accrued expenses		125,599			124,334
Dividends and distributions payable		25,949			25,902
Intangible liabilities, net		89,955			95,991
Other liabilities		56,565			51,170

Total liabilities		3,867,001			3,864,314

Equity:
Paramount Group, Inc. equity		3,988,877			4,000,800
Noncontrolling interests in:
Consolidated joint ventures		367,012			394,995
Consolidated real estate fund		81,434			66,887
Operating Partnership		417,313			428,982

Total equity		4,854,636			4,891,664

Total liabilities and equity	$	8,721,637		$	8,755,978

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		CONSOLIDATED STATEMENTS OF INCOME

(unaudited and in thousands, except per share amounts)


	Three Months Ended
	March 31, 2019			March 31, 2018			December 31, 2018
Revenues:
Rental revenue ⁽¹⁾	$	182,616		$	177,679		$	181,820
Fee and other income ⁽¹⁾		9,176			6,592			8,855

Total revenues ⁽¹⁾		191,792			184,271			190,675


Expenses:
Operating		68,381			68,978			67,643
Depreciation and amortization		63,089			65,156			63,684
General and administrative ⁽¹⁾		17,443			12,631			13,285
Transaction related costs		736			120			608

Total expenses		149,649			146,885			145,220


Other income (expense):
(Loss) income from unconsolidated joint ventures		(1,027	)		(62	)		537
Income (loss) from unconsolidated real estate funds		46			(66	)		(1	)
Interest and other income, net ⁽¹⁾		3,900			2,016			1,229
Interest and debt expense ⁽¹⁾		(36,924	)		(36,082	)		(37,657	)

Net income before income taxes		8,138			3,192			9,563
Income tax expense		(1,138	)		(477	)		(968	)

Net income		7,000			2,715			8,595
Less net (income) loss attributable to noncontrolling interests in:
Consolidated joint ventures		(2,794	)		(1,055	)		(2,662	)
Consolidated real estate fund		(94	)		(430	)		(52	)
Operating Partnership		(403	)		(116	)		(563	)

Net income attributable to common stockholders	$	3,709		$	1,114		$	5,318

*Per diluted share*	$	*0.02*		$	*0.00*		$	*0.02*

Capitalized internal leasing costs	$	—		$	1,732		$	1,377

⁽¹⁾	See page 10 for details.

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		SELECT INCOME STATEMENT DATA

(unaudited and in thousands)


	Three Months Ended
	March 31, 2019		March 31, 2018		December 31, 2018
Rental Revenue:
Property rentals	$	151,228	$	145,741	$	149,654
Tenant reimbursements		15,615		14,246		13,961
Straight-line rent adjustments		11,578		13,244		13,390
Amortization of above and below-market leases, net		3,276		4,420		3,448
Lease termination income		919		28		1,367

Total rental revenue	$	182,616	$	177,679	$	181,820

Fee and Other Income:
Property management	$	1,642	$	1,502	$	1,695
Asset management		2,318		1,610		2,257
Acquisition and disposition		1,331		—		1,410
Other		708		353		314

Total fee income		5,999		3,465		5,676
Other (primarily parking income and tenant requested services, including overtime heating and cooling)		3,177		3,127		3,179

Total fee and other income	$	9,176	$	6,592	$	8,855


	Three Months Ended
	March 31, 2019		March 31, 2018		December 31, 2018
General and Administrative:
Cash general and administrative	$	7,772	$	6,275	$	11,086
Non-cash general and administrative—stock based compensation expense		7,602		6,265		4,401
Mark-to-market of deferred compensation plan liabilities (offset by an increase (decrease) in the mark-to-market of plan assets, which is included in “interest and other income”)		2,069		91		(2,202	)

Total general and administrative	$	17,443	$	12,631	$	13,285


	Three Months Ended
	March 31, 2019		March 31, 2018		December 31, 2018
Interest and Other Income, net:
Preferred equity investment income ⁽¹⁾	$	454	$	899	$	909
Interest income, net		1,377		1,026		2,522
Mark-to-market of deferred compensation plan assets (offset by an increase (decrease) in the mark-to-market of plan liabilities, which is included in “general and administrative” expenses)		2,069		91		(2,202	)

Total interest and other income, net	$	3,900	$	2,016	$	1,229

⁽¹⁾	Represents 100% of the investment income from PGRESS Equity Holdings, L.P., of which our 24.4% share is $111, $219 and $221 for the three months ended March 31, 2019 and 2018, and December 31, 2018, respectively. On March 1, 2019, our only remaining preferred equity investment was redeemed.


	Three Months Ended
	March 31, 2019		March 31, 2018		December 31, 2018
Interest and Debt Expense:
Interest expense	$	34,123	$	33,321	$	34,901
Amortization of deferred financing costs		2,801		2,761		2,756

Total interest and debt expense	$	36,924	$	36,082	$	37,657

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		FFO

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


	Three Months Ended
	March 31, 2019			March 31, 2018			December 31, 2018
Reconciliation of net income to FFO and Core FFO:
Net income	$	7,000		$	2,715		$	8,595
Real estate depreciation and amortization (including our share of unconsolidated joint ventures)		66,065			67,160			65,832

FFO ⁽¹⁾		73,065			69,875			74,427
Less FFO attributable to noncontrolling interests in:
Consolidated joint ventures		(11,748	)		(10,207	)		(12,143	)
Consolidated real estate fund		(94	)		(430	)		(52	)

FFO attributable to Paramount Group Operating Partnership		61,223			59,238			62,232
Less FFO attributable to noncontrolling interests in Operating Partnership		(5,998	)		(5,585	)		(5,961	)

FFO attributable to common stockholders⁽¹⁾	$	55,225		$	53,653		$	56,271

Per diluted share	$	0.24		$	0.22		$	0.24

FFO	$	73,065		$	69,875		$	74,427
Non-core items:
Our share of earnings from 712 Fifth Avenue in excess of distributions received		1,270			1,195			2,646
Other, net		823			251			693

Core FFO ⁽¹⁾		75,158			71,321			77,766
Less Core FFO attributable to noncontrolling interests in:
Consolidated joint ventures		(11,748	)		(10,207	)		(12,143	)
Consolidated real estate fund		(94	)		(430	)		(52	)

Core FFO attributable to Paramount Group Operating Partnership		63,316			60,684			65,571
Less Core FFO attributable to noncontrolling interests in Operating Partnership		(6,203	)		(5,721	)		(6,281	)

Core FFO attributable to common stockholders ⁽¹⁾	$	57,113		$	54,963		$	59,290

Per diluted share	$	0.24		$	0.23		$	0.25

Reconciliation of weighted average shares outstanding:
Weighted average shares outstanding		233,419,299			240,311,744			237,036,494
Effect of dilutive securities		39,139			26,954			40,746

Denominator for FFO and Core FFO per diluted share		233,458,438			240,338,698			237,077,240

⁽¹⁾	See page 35 for our definition of this measure.

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		FAD

(unaudited and in thousands)


	Three Months Ended
	March 31, 2019			March 31, 2018			December 31, 2018
Reconciliation of Core FFO to FAD:
Core FFO	$	75,158		$	71,321		$	77,766
Add (subtract) adjustments to arrive at FAD:
Amortization of stock-based compensation expense		7,602			6,265			4,401
Amortization of deferred financing costs (including our share of unconsolidated joint ventures)		2,926			2,835			2,830
Amortization of above and below-market leases, net (including our share of unconsolidated joint ventures)		(3,220	)		(4,257	)		(3,286	)
Expenditures to maintain assets		(3,535	)		(3,702	)		(5,125	)
Second generation tenant improvements and leasing commissions		(15,506	)		(14,983	)		(46,027	)
Straight-line rent adjustments (including our share of unconsolidated joint ventures)		(11,778	)		(13,197	)		(13,320	)

FAD ⁽¹⁾		51,647			44,282			17,239
Less FAD attributable to noncontrolling interests in:
Consolidated joint ventures		(6,533	)		(6,850	)		(5,785	)
Consolidated real estate fund		(94	)		(430	)		(52	)

FAD attributable to Paramount Group Operating Partnership		45,020			37,002			11,402
Less FAD attributable to noncontrolling interests in Operating Partnership		(4,410	)		(3,488	)		(1,092	)

FAD attributable to common stockholders ^(1) (2)	$	40,610		$	33,514		$	10,310

Dividends declared on common stock	$	23,448		$	24,051		$	23,356

⁽¹⁾	See page 35 for our definition of this measure.

⁽²⁾	FAD attributable to common stockholders is not necessarily indicative of future FAD amounts due to fluctuations in the timing of payments for tenant improvements and leasing commissions versus rents received from leases for which such costs are incurred.

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		EBITDAre

(unaudited and in thousands)


	Three Months Ended
	March 31, 2019			March 31, 2018			December 31, 2018
Reconciliation of net income to EBITDAre and Adjusted EBITDAre:
Net income	$	7,000		$	2,715		$	8,595
Add (subtract) adjustments to arrive at EBITDAre and Adjusted EBITDAre:
Depreciation and amortization (including our share of unconsolidated joint ventures)		66,065			67,160			65,832
Interest and debt expense (including our share of unconsolidated joint ventures)		39,166			37,744			39,406
Income tax expense (including our share of unconsolidated joint ventures)		1,139			478			968

EBITDAre⁽¹⁾		113,370			108,097			114,801
Less EBITDAre attributable to noncontrolling interests in:
Consolidated joint ventures		(18,329	)		(16,786	)		(18,832	)
Consolidated real estate fund		(98	)		(432	)		(52	)

PGRE’s share of EBITDAre ⁽¹⁾	$	94,943		$	90,879		$	95,917


EBITDAre	$	113,370		$	108,097		$	114,801
Add (subtract) adjustments to arrive at Adjusted EBITDAre:
Our share of earnings from 712 Fifth Avenue in excess of distributions received		1,270			1,195			2,646
Other, net		634			(294	)		598

Adjusted EBITDAre ⁽¹⁾		115,274			108,998			118,045
Less Adjusted EBITDAre attributable to noncontrolling interests in:
Consolidated joint ventures		(18,329	)		(16,786	)		(18,832	)
Consolidated real estate fund		—			—			—

PGRE’s share of Adjusted EBITDAre ⁽¹⁾	$	96,945		$	92,212		$	99,213

⁽¹⁾	See page 35 for our definition of this measure.

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		NOI

(unaudited and in thousands)


	Three Months Ended
	March 31, 2019			March 31, 2018			December 31, 2018
Reconciliation of net income to NOI and Cash NOI:
Net income	$	7,000		$	2,715		$	8,595
Add (subtract) adjustments to arrive at NOI and Cash NOI:
Depreciation and amortization		63,089			65,156			63,684
General and administrative		17,443			12,631			13,285
Interest and debt expense		36,924			36,082			37,657
Income tax expense		1,138			477			968
NOI from unconsolidated joint ventures		5,411			4,740			6,973
Fee income		(5,999	)		(3,465	)		(5,676	)
Interest and other income, net		(3,900	)		(2,016	)		(1,229	)
Other, net		1,717			248			72

NOI ⁽¹⁾		122,823			116,568			124,329
Less NOI attributable to noncontrolling interests in:
Consolidated joint ventures		(17,909	)		(16,014	)		(18,026	)
Consolidated real estate fund		29			26			(9	)

PGRE’s share of NOI⁽¹⁾	$	104,943		$	100,580		$	106,294


NOI ⁽¹⁾	$	122,823		$	116,568		$	124,329
Less:
Straight-line rent adjustments (including our share of unconsolidated joint ventures)		(11,778	)		(13,197	)		(13,320	)
Amortization of above and below-market leases, net (including our share of unconsolidated joint ventures)		(3,220	)		(4,257	)		(3,286	)

Cash NOI⁽¹⁾		107,825			99,114			107,723
Less Cash NOI attributable to noncontrolling interests in:
Consolidated joint ventures		(14,785	)		(13,193	)		(14,953	)
Consolidated real estate fund		29			26			(9	)

PGRE’s share of Cash NOI ⁽¹⁾	$	93,069		$	85,947		$	92,761

⁽¹⁾	See page 35 for our definition of this measure.

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		NOI

(unaudited and in thousands)


	Three Months Ended March 31, 2019
	Total			New York			San Francisco			Washington, D.C.		Other
Reconciliation of net income (loss) to NOI and Cash NOI:
Net income (loss)	$	7,000		$	9,077		$	8,037		$	2,106	$	(12,220	)
Add (subtract) adjustments to arrive at NOI and Cash NOI:
Depreciation and amortization		63,089			40,024			19,891			2,377		797
General and administrative		17,443			—			—			—		17,443
Interest and debt expense		36,924			23,743			12,166			—		1,015
Income tax expense		1,138			—			6			—		1,132
NOI from unconsolidated joint ventures		5,411			4,657			700			—		54
Fee income		(5,999	)		—			—			—		(5,999	)
Interest and other income, net		(3,900	)		—			(134	)		—		(3,766	)
Other, net		1,717			149			872			—		696

NOI ⁽¹⁾		122,823			77,650			41,538			4,483		(848	)
Less NOI attributable to noncontrolling interests in:
Consolidated joint ventures		(17,909	)		—			(17,909	)		—		—
Consolidated real estate fund		29			—			—			—		29

PGRE’s share of NOIfor the three months ended March 31, 2019	$	104,943		$	77,650		$	23,629		$	4,483	$	(819	)

PGRE’s share of NOI for the three months ended March 31, 2018	$	100,580		$	71,149		$	21,769		$	9,604	$	(1,942	)


NOI ⁽¹⁾	$	122,823		$	77,650		$	41,538		$	4,483	$	(848	)
Add (subtract) adjustments to arrive at Cash NOI:
Straight-line rent adjustments (including our share of unconsolidated joint ventures)		(11,778	)		(9,324	)		(2,612	)		91		67
Amortization of above and below-market leases, net (including our share of unconsolidated joint ventures)		(3,220	)		475			(3,715	)		20		—

Cash NOI⁽¹⁾		107,825			68,801			35,211			4,594		(781	)
Less Cash NOI attributable to noncontrolling interests in:
Consolidated joint ventures		(14,785	)		—			(14,785	)		—		—
Consolidated real estate fund		29			—			—			—		29

PGRE’s share of Cash NOI for the three months ended March 31, 2019	$	93,069		$	68,801		$	20,426		$	4,594	$	(752	)

PGRE’s share of Cash NOI for the three months ended March 31, 2018	$	85,947		$	62,198		$	16,415		$	9,215	$	(1,881	)

⁽¹⁾	See page 35 for our definition of this measure.

- 15 -


		SAME STORE RESULTS

(unaudited and in thousands)


	Three Months Ended March 31, 2019
SAME STORE CASH NOI⁽¹⁾	Total			New York			San Francisco			Washington, D.C.			Other
PGRE’s share of Cash NOI for the three months ended March 31, 2019	$	93,069		$	68,801		$	20,426		$	4,594		$	(752	)
Acquisitions⁽²⁾		(560	)		—			(560	)		—			—
Dispositions		—			—			—			—			—
Lease termination income (including our share of unconsolidated joint ventures)		(2,346	)		(2,346	)		—			—			—
Other, net		185			185			—			—			—

PGRE’s share of Same Store Cash NOI ⁽¹⁾ for the three months ended March 31, 2019	$	90,348		$	66,640		$	19,866		$	4,594		$	(752	)


	Three Months Ended March 31, 2018
	Total			New York			San Francisco			Washington, D.C.			Other
PGRE’s share of Cash NOI for the three months ended March 31, 2018	$	85,947		$	62,198		$	16,415		$	9,215		$	(1,881	)
Acquisitions		—			—			—			—			—
Dispositions⁽³⁾		(4,592	)		—			—			(4,592	)		—
Lease termination income (including our share of unconsolidated joint ventures)		(190	)		(190	)		—			—			—
Other, net		—			—			—			—			—

PGRE’s share of Same Store Cash NOI⁽¹⁾ for the three months ended March 31, 2018	$	81,165		$	62,008		$	16,415		$	4,623		$	(1,881	)


Increase (decrease) in PGRE’s share of Same Store Cash NOI	$	9,183		$	4,632		$	3,451		$	(29	)	$	1,129
% Increase (decrease)		11.3	%		7.5	%		21.0	%		(0.6	%)

⁽¹⁾	See page 35 for our definition of this measure.

⁽²⁾	Represents our share of Cash NOI attributable to acquired properties (111 Sutter Street in San Francisco) for the months in which they were not owned by us in both reporting periods.

⁽³⁾	Represents our share of Cash NOI attributable to sold properties (2099 Pennsylvania Avenue and 425 Eye Street in Washington, D.C.) for the months in which they were not owned by us in both reporting periods.

- 16 -


		SAME STORE RESULTS

(unaudited and in thousands)


	Three Months Ended March 31, 2019
SAME STORE NOI⁽¹⁾	Total			New York			San Francisco			Washington, D.C.			Other
PGRE’s share of NOI for the three months ended March 31, 2019	$	104,943		$	77,650		$	23,629		$	4,483		$	(819	)
Acquisitions⁽²⁾		(700	)		—			(700	)		—			—
Dispositions		—			—			—			—			—
Lease termination income (including our share of unconsolidated joint ventures)		(2,346	)		(2,346	)		—			—			—
Other, net		185			185			—			—			—

PGRE’s share of Same Store NOI⁽¹⁾ for the three months ended March 31, 2019	$	102,082		$	75,489		$	22,929		$	4,483		$	(819	)


	Three Months Ended March 31, 2018
	Total			New York			San Francisco			Washington, D.C.			Other
PGRE’s share of NOI for the three months ended March 31, 2018	$	100,580		$	71,149		$	21,769		$	9,604		$	(1,942	)
Acquisitions		—			—			—			—			—
Dispositions⁽³⁾		(4,899	)		—			—			(4,899	)		—
Lease termination income (including our share of unconsolidated joint ventures)		(190	)		(190	)		—			—			—
Other, net		—			—			—			—			—

PGRE’s share of Same Store NOI⁽¹⁾ for the three months ended March 31, 2018	$	95,491		$	70,959		$	21,769		$	4,705		$	(1,942	)


Increase (decrease) in PGRE’s share of Same Store NOI	$	6,591		$	4,530		$	1,160		$	(222	)	$	1,123
% Increase (decrease)		6.9	%		6.4	%		5.3	%		(4.7	%)

⁽¹⁾	See page 35 for our definition of this measure.

⁽²⁾	Represents our share of NOI attributable to acquired properties (111 Sutter Street in San Francisco) for the months in which they were not owned by us in both reporting periods.

⁽³⁾	Represents our share of NOI attributable to sold properties (2099 Pennsylvania Avenue and 425 Eye Street in Washington, D.C.) for the months in which they were not owned by us in both reporting periods.

- 17 -


		CONSOLIDATED JOINT VENTURES AND FUND - BALANCE SHEETS

(unaudited and in thousands)


	As of March 31, 2019										As of December 31, 2018
									Consolidated										Consolidated
	Consolidated Joint Ventures								Fund		Consolidated Joint Ventures								Fund
		Total		One		50		PGRESS		Residential		Total		One		50		PGRESS		Residential
	Consolidated		Market		Beale		Equity		Development		Consolidated		Market		Beale		Equity		Development
	Joint Ventures		Plaza		Street		Holdings L.P.		Fund		Joint Ventures		Plaza		Street		Holdings L.P.		Fund
PGRE Ownership			49.0%		31.1%		24.4%		7.4%				49.0%		31.1%		24.4%		7.4%
Assets:
Real estate, net	$	1,695,367	$	1,217,346	$	478,021	$	—	$	—	$	1,699,618	$	1,223,388	$	476,230	$	—	$	—
Cash and cash equivalents		67,248		46,065		20,115		1,068		6,156		54,268		33,976		19,933		359		3,648
Restricted cash		3,802		3,802		—		—		—		5,534		5,534		—		—		—
Preferred equity investments		—		—		—		—		—		36,042		—		—		36,042		—
Investments in unconsolidated joint ventures		—		—		—		—		66,059		—		—		—		—		52,923
Accounts and other receivables, net		1,776		1,182		594		—		125		1,982		903		1,079		—		125
Deferred rent receivable		54,005		47,004		7,001		—		—		51,926		46,646		5,280		—		—
Deferred charges, net		16,825		12,187		4,638		—		—		14,160		9,433		4,727		—		—
Intangible assets, net		41,525		27,277		14,248		—		—		45,818		29,398		16,420		—		—
Other assets		4,431		4,379		52		—		15,691		949		752		197		—		15,686

Total Assets	$	1,884,979	$	1,359,242	$	524,669	$	1,068	$	88,031	$	1,910,297	$	1,350,030	$	523,866	$	36,401	$	72,382

Liabilities:
Notes and mortgages payable, net	$	1,197,903	$	969,903	$	228,000	$	—	$	—	$	1,197,644	$	969,644	$	228,000	$	—	$	—
Accounts payable and accrued expenses		35,820		28,112		7,643		65		55		24,163		17,716		6,395		52		20
Intangible liabilities, net		28,176		23,787		4,389		—		—		31,582		26,156		5,426		—		—
Other liabilities		4,209		4,206		3		—		—		5		2		3		—		—

Total Liabilities		1,266,108		1,026,008		240,035		65		55		1,253,394		1,013,518		239,824		52		20

Equity:
Paramount Group, Inc. equity		251,859		163,352		87,748		759		6,542		261,908		164,958		87,577		9,373		5,475
Noncontrolling interests		367,012		169,882		196,886		244		81,434		394,995		171,554		196,465		26,976		66,887

Total Equity		618,871		333,234		284,634		1,003		87,976		656,903		336,512		284,042		36,349		72,362

Total Liabilities and Equity	$	1,884,979	$	1,359,242	$	524,669	$	1,068	$	88,031	$	1,910,297	$	1,350,030	$	523,866	$	36,401	$	72,382

- 18 -


		CONSOLIDATED JOINT VENTURES AND FUND - OPERATING RESULTS

(unaudited and in thousands)


	Three Months Ended March 31, 2019														Three Months Ended March 31, 2018
												Consolidated														Consolidated
	Consolidated Joint Ventures											Fund			Consolidated Joint Ventures											Fund
	Total			One								Residential			Total			One								Residential
	Consolidated			Market			50 Beale			PGRESS Equity		Development			Consolidated			Market			50 Beale			PGRESS Equity		Development
	Joint Ventures			Plaza			Street			Holdings L.P.		Fund			Joint Ventures			Plaza			Street			Holdings L.P.		Fund
Total revenues	$	45,657		$	33,879		$	11,778		$	—	$	—		$	40,845		$	31,930		$	8,915		$	—	$	2
Total operating expenses		12,439			9,013			3,426			—		18			10,572			7,522			3,050			—		1

Net operating income (loss) ⁽¹⁾		33,218			24,866			8,352			—		(18	)		30,273			24,408			5,865			—		1
Depreciation and amortization		(15,761	)		(10,641	)		(5,120	)		—		—			(16,206	)		(11,249	)		(4,957	)		—		—
Interest and other income, net		588			81			53			454		89			1,058			92			67			899		509
Interest and debt expense		(12,166	)		(10,085	)		(2,081	)		—		—			(12,167	)		(10,086	)		(2,081	)		—		—
Loss from unconsolidated joint ventures		—			—			—			—		(15	)		—			—			—			—		(2	)

Net income (loss) before income taxes		5,879			4,221			1,204			454		56			2,958			3,165			(1,106	)		899		508
Income tax expense		(6	)		(3	)		(3	)		—		(4	)		(3	)		(3	)		—			—		(2	)

Net income (loss)	$	5,873		$	4,218		$	1,201		$	454	$	52		$	2,955		$	3,162		$	(1,106	)	$	899	$	506


PGRE’s share Ownership		Total			49.0%			31.1%			24.4%		7.4%			Total			49.0%			31.1%			24.4%		7.4%

Net income (loss)	$	2,534		$	2,067		$	356		$	111	$	(42	)	$	1,408		$	1,549		$	(360	)	$	219	$	50
Add: Management fee income		545			189			356			—		—			492			167			325			—		26

PGRE’s share of net income (loss)		3,079			2,256			712			111		(42	)		1,900			1,716			(35	)		219		76
Add: Real estate depreciation and amortization		6,807			5,214			1,593			—		—			7,054			5,512			1,542			—		—

FFO/Core FFO ⁽¹⁾	$	9,886		$	7,470		$	2,305		$	111	$	(42	)	$	8,954		$	7,228		$	1,507		$	219	$	76


Noncontrolling Interests’ share Ownership		Total			51.0%			68.9%			75.6%		92.6%			Total			51.0%			68.9%			75.6%		92.6%

Net income (loss)	$	3,339		$	2,151		$	845		$	343	$	94		$	1,547		$	1,613		$	(746	)	$	680	$	456
Less: Management fee expense		(545	)		(189	)		(356	)		—		—			(492	)		(167	)		(325	)		—		(26	)

Net income (loss) attributable to noncontrolling interests		2,794			1,962			489			343		94			1,055			1,446			(1,071	)		680		430
Add: Real estate depreciation and amortization		8,954			5,427			3,527			—		—			9,152			5,737			3,415			—		—

FFO/Core FFO ⁽¹⁾	$	11,748		$	7,389		$	4,016		$	343	$	94		$	10,207		$	7,183		$	2,344		$	680	$	430

⁽¹⁾	See page 35 for our definition of this measure.

- 19 -


		UNCONSOLIDATED JOINT VENTURES - BALANCE SHEETS

(unaudited and in thousands)


	As of March 31, 2019											As of December 31, 2018
			712 Fifth			111 Sutter		60 Wall						712 Fifth			60 Wall
	Total		Avenue			Street⁽¹⁾		Street		Other⁽²⁾		Total		Avenue			Street		Other⁽¹⁾
PGRE Ownership			50.0%			49.0%		5.0%		Various				50.0%			5.0%		Various
Assets:
Real estate, net	$	1,460,396	$	203,585		$	215,262	$	847,874	$	193,675	$	1,236,989	$	202,289		$	852,951	$	181,749
Cash and cash equivalents		59,457		38,957			2,388		17,281		831		48,076		28,911			17,512		1,653
Restricted cash		4,040		2,093			1,715		—		232		2,758		2,526			—		232
Accounts and other receivables, net		1,241		868			373		—		—		6,329		6,329			—		—
Deferred rent receivable		15,598		14,058			68		1,472		—		15,206		13,618			1,588		—
Deferred charges, net		6,151		6,151			—		—		—		6,575		6,575			—		—
Intangible assets, net		106,781		—			16,314		90,467		—		97,658		—			97,658		—
Other assets		8,544		3,923			309		33		4,279		12,608		7,770			35		4,803

Total Assets	$	1,662,208	$	269,635		$	236,429	$	957,127	$	199,017	$	1,426,199	$	268,018		$	969,744	$	188,437

Liabilities:
Notes and mortgages payable, net	$	1,022,931	$	296,645		$	135,736	$	569,971	$	20,579	$	887,882	$	296,543		$	569,536	$	21,803
Accounts payable and accrued expenses		21,922		5,328			2,612		7,679		6,303		18,734		6,251			7,631		4,852
Intangible liabilities, net		5,685		—			5,685		—		—		—		—			—		—
Other liabilities		1,836		342			250		935		309		3,576		445			850		2,281

Total Liabilities		1,052,374		302,315			144,283		578,585		27,191		910,192		303,239			578,017		28,936

Total Equity		609,834		(32,680	)		92,146		378,542		171,826		516,007		(35,221	)		391,727		159,501

Total Liabilities and Equity	$	1,662,208	$	269,635		$	236,429	$	957,127	$	199,017	$	1,426,199	$	268,018		$	969,744	$	188,437

⁽¹⁾	Acquired on February 7, 2019.

⁽²⁾	Represents Oder-Center, Germany and One Steuart Lane.

- 20 -


		UNCONSOLIDATED JOINT VENTURES - OPERATING RESULTS

(unaudited and in thousands)


	Three Months Ended March 31, 2019															Three Months Ended March 31, 2018
				712 Fifth			111 Sutter			60 Wall									712 Fifth			60 Wall
	Total			Avenue			Street⁽¹⁾			Street			Other⁽²⁾			Total			Avenue			Street			Other⁽²⁾
Total revenues	$	38,322		$	14,194		$	2,497		$	20,629		$	1,002		$	35,971		$	14,132		$	20,443		$	1,396
Total operating expenses		14,403			6,271			1,068			6,744			320			13,527			6,184			6,740			603

Net operating income ⁽³⁾		23,919			7,923			1,429			13,885			682			22,444			7,948			13,703			793
Depreciation and amortization		(14,125	)		(2,830	)		(2,163	)		(9,033	)		(99	)		(12,161	)		(3,026	)		(9,033	)		(102	)
Interest and other income (loss), net		98			93			9			(4	)		—			170			113			56			1
Interest and debt expense		(11,527	)		(2,646	)		(1,054	)		(7,586	)		(241	)		(9,179	)		(2,645	)		(6,270	)		(264	)

Net (loss) income before income taxes		(1,635	)		2,540			(1,779	)		(2,738	)		342			1,274			2,390			(1,544	)		428
Income tax expense		(8	)		—			—			—			(8	)		(10	)		—			—			(10	)

Net (loss) income	$	(1,643	)	$	2,540		$	(1,779	)	$	(2,738	)	$	334		$	1,264		$	2,390		$	(1,544	)	$	418


PGRE’s share: Ownership	Total			50.0%			49.0%			5.0%			Various			Total			50.0%			5.0%			Various
Net income (loss)	$	282		$	1,270		$	(872	)	$	(137	)	$	21		$	1,161		$	1,195		$	(73	)	$	39
Less: Step-up basis adjustment		(39	)		—			—			(12	)		(27	)		(28	)		—			—			(28	)
Less: Earnings in excess of distributions		(1,270	)		(1,270	)		—			—			—			(1,195	)		(1,195	)		—			—

PGRE’s share of net (loss) income		(1,027	)		—			(872	)		(149	)		(6	)		(62	)		—			(73	)		11
Less: Noncontrolling interests		13			—			—			—			13			—			—			—			—
Add: Real estate depreciation and amortization		2,976			1,415			1,060			465			36			2,004			1,513			453			38

FFO ⁽³⁾		1,962			1,415			188			316			43			1,942			1,513			380			49
Add: Earnings in excess of distributions		1,270			1,270			—			—			—			1,195			1,195			—			—

Core FFO⁽³⁾	$	3,232		$	2,685		$	188		$	316		$	43		$	3,137		$	2,708		$	380		$	49


Joint Venture Partners’ share: Ownership	Total			50.0%			51.0%			95.0%			Various			Total			50.0%			95.0%			Various
Net (loss) income	$	(1,925	)	$	1,270		$	(907	)	$	(2,601	)	$	313		$	103		$	1,195		$	(1,471	)	$	379
Add: Real estate depreciation and amortization		11,176			1,415			1,103			8,568			90			10,185			1,513			8,580			92

FFO/Core FFO ⁽³⁾	$	9,251		$	2,685		$	196		$	5,967		$	403		$	10,288		$	2,708		$	7,109		$	471

⁽¹⁾	Acquired on February 7, 2019.

⁽²⁾	Represents Oder-Center, Germany and One Steuart Lane.

⁽³⁾	See page 35 for our definition of this measure.

- 21 -


		UNCONSOLIDATED FUNDS SUMMARY

(unaudited and in thousands)

Debt Funds:

Paramount Group Real Estate Fund VIII L.P. (Fund VIII)

The following is a summary of Fund VIII and our ownership interests in the underlying investments, as of March 31, 2019.


		PGRE Ownership			Fixed / Variable rate		Interest Rate		Maturity		Face Amount				Fair Value
Investments	Investment Type	PGRE Ownership			Fixed / Variable rate		Interest Rate		Maturity		Total		Our Share		Total		Our Share
26 Broadway	Mezzanine Loan		1.3	%		Fixed		8.25%		Jan-2022	$	50,000	$	645	$	50,229	$	648
700 Eighth Avenue	Mortgage and Mezzanine Loans		1.3	%		Variable (LIBOR plus 600 bps)		8.48%		Jul-2020		70,000		903		69,616		898
1285 Avenue of the Americas	Mezzanine Loan		1.3	%		Fixed		6.75%		Jun-2023		55,000		710		55,357		714
Other	Mortgage and Mezzanine Loans/ Preferred Equity		1.3	%		Various		5.50% - 9.48%		Oct-2019 to Dec-2027		459,748		5,932		452,736		5,839

											$	634,748	$	8,190	$	627,938	$	8,099


	Total			Our Share
Committed capital	$	775,200		$	10,000
Invested and/or reserved for future funding		(699,553	)		(9,024	)

Available for future investments	$	75,647		$	976

Paramount Group Real Estate Fund X L.P. (Fund X)

As of March 31, 2019, we have closed $167,000,000 in capital commitments for Fund X, including $10,000,000 from us.

- 22 -


		CAPITAL STRUCTURE

(unaudited and in thousands, except share, unit and per share amounts)


					As of March 31, 2019
Debt:
Consolidated debt:
Notes and mortgages payable ⁽¹⁾					$	3,599,800
$1.0 billion Revolving Credit Facility						—

						3,599,800
Less:
Noncontrolling interests’ share of consolidated debt (One Market Plaza and 50 Beale Street)						(654,342	)
Add:
PGRE’s share of unconsolidated joint venture debt (712 Fifth Avenue, 111 Sutter Street, 60 Wall Street and Oder-Center, Germany)						248,481

PGRE’s share of total debt ⁽²⁾						3,193,939


	Shares / Units Outstanding		Share Price as of March 31, 2019
Equity:
Common stock		234,478,379	$	14.19		3,327,248
Operating Partnership units		24,648,305		14.19		349,759

Total equity		259,126,684		14.19		3,677,007

Total Market Capitalization					$	6,870,946

⁽¹⁾	Represents contractual amount due pursuant to the respective debt agreements.

⁽²⁾	See page 35 for our definition of this measure.

- 23 -


		DEBT ANALYSIS

(unaudited and in thousands)


	Total Debt						Fixed Rate Debt						Variable Rate Debt
	Amount			Rate			Amount			Rate			Amount			Rate
Consolidated Debt:
1633 Broadway	$	1,046,800			3.57	%	$	1,000,000			3.54	%	$	46,800			4.24	%
1301 Avenue of the Americas		850,000			3.56	%		500,000			3.05	%		350,000			4.30	%
31 West 52nd Street		500,000			3.80	%		500,000			3.80	%		—			—
One Market Plaza		975,000			4.03	%		975,000			4.03	%		—			—
50 Beale Street		228,000			3.65	%		228,000			3.65	%		—			—
Revolving Credit Facility		—			—			—			—			—			—

Total consolidated debt		3,599,800			3.73	%		3,203,000			3.66	%		396,800			4.29	%
Noncontrolling interests’ share		(654,342	)		3.94	%		(654,342	)		3.94	%		—			—

PGRE’s share of consolidated debt ⁽¹⁾	$	2,945,458			3.68	%	$	2,548,658			3.59	%	$	396,800			4.29	%

Unconsolidated Joint Venture Debt:
712 Fifth Avenue	$	300,000			3.39	%	$	300,000			3.39	%	$	—			—
111 Sutter Street ⁽²⁾		138,200			4.64	%		—			—			138,200			4.64	%
60 Wall Street		575,000			4.93	%		—			—			575,000			4.93	%
Oder-Center, Germany		20,579			4.62	%		20,579			4.62	%		—			—

Total unconsolidated debt		1,033,779			4.44	%		320,579			3.47	%		713,200			4.88	%

Joint venture partners’ share		(785,298	)		4.61	%		(168,624	)		3.53	%		(616,674	)		4.90	%

PGRE’s share of unconsolidated debt ⁽¹⁾	$	248,481			3.92	%	$	151,955			3.41	%	$	96,526			4.73	%

PGRE’s share of Total Debt ⁽¹⁾	$	3,193,939			3.70	%	$	2,700,613			3.58	%	$	493,326			4.38	%


	Required		Actual
Revolving Credit Facility Covenants:⁽³⁾
Total Debt / Total Assets		Less than 60%		39.7	%
Secured Debt / Total Assets		Less than 50%		39.7	%
Fixed Charge Coverage		Greater than 1.5x		3.8	x
Unsecured Debt / Unencumbered Assets		Less than 60%		0.0	%
Unencumbered Interest Coverage		Greater than 1.75x		46.0	x


	Amount		%
Debt Composition:
Fixed rate debt:
PGRE’s consolidated fixed rate debt	$	2,548,658
PGRE’s unconsolidated fixed rate debt		151,955

Total fixed rate debt		2,700,613		84.6	%

Variable rate debt:
PGRE’s consolidated variable rate debt		396,800
PGRE’s unconsolidated variable rate debt		96,526

Total variable rate debt		493,326		15.4	%

PGRE’s share of Total Debt⁽²⁾	$	3,193,939		100.0	%

⁽¹⁾	See page 35 for our definition of this measure.

⁽²⁾	In connection with the acquisition of 111 Sutter Street on February 7, 2019, the joint venture completed a financing of the property. The four-year loan is interest only at LIBOR plus 215 basis points and has three one-year extension options.

⁽³⁾

This section presents ratios as of March 31, 2019 in accordance with the terms of our revolving credit facility, which has been filed with the SEC. We are not presenting these ratios and the related calculations for any other purpose or for any other period, and are not intending for these measures to otherwise provide information to investors about our financial condition or results of operations. Investors should not rely on these measures other than for purposes of testing our compliance with the revolving credit facility.

- 24 -


		DEBT MATURITIES

(unaudited and in thousands)


	2019			2020			2021			2022			2023			Thereafter			Total
Consolidated Debt:
1301 Avenue of the Americas	$	—		$	—		$	850,000		$	—		$	—		$	—		$	850,000
50 Beale Street		—			—			228,000			—			—			—			228,000
1633 Broadway		—			—			—			1,046,800			—			—			1,046,800
One Market Plaza		—			—			—			—			—			975,000			975,000
31 West 52nd Street		—			—			—			—			—			500,000			500,000
Revolving Credit Facility		—			—			—			—			—			—			—

Total consolidated debt		—			—			1,078,000			1,046,800			—			1,475,000			3,599,800
Noncontrolling interests’ share		—			—			(157,092	)		—			—			(497,250	)		(654,342	)

PGRE’s share of consolidated debt ⁽¹⁾	$	—		$	—		$	920,908		$	1,046,800		$	—		$	977,750		$	2,945,458

Unconsolidated Joint Venture Debt:
712 Fifth Avenue	$	—		$	—		$	—		$	—		$	—		$	300,000		$	300,000
111 Sutter Street		—			—			—			—			138,200			—			138,200
60 Wall Street		—			—			—			575,000			—			—			575,000
Oder-Center, Germany		—			—			—			20,579			—			—			20,579

Total unconsolidated debt		—			—			—			595,579			138,200			300,000			1,033,779
Joint venture partners’ share		—			—			—			(564,816	)		(70,482	)		(150,000	)		(785,298	)

PGRE’s share of unconsolidated debt ⁽¹⁾	$	—		$	—		$	—		$	30,763		$	67,718		$	150,000		$	248,481

PGRE’s share of total debt ⁽¹⁾	$	—		$	—		$	920,908		$	1,077,563		$	67,718		$	1,127,750		$	3,193,939

Weighted average rate		—	%		—	%		3.57	%		3.61	%		4.64	%		3.84	%		3.70	%

% of debt maturing		—	%		—	%		28.8	%		33.7	%		2.1	%		35.4	%		100.0	%

⁽¹⁾	See page 35 for our definition of this measure.

- 25 -


		PORTFOLIO SUMMARY

(unaudited and in thousands, except square feet and per square foot amounts)


													Annualized Rent⁽¹⁾
Property	Submarket	Paramount Ownership			Square Feet		% Leased⁽¹⁾			% Occupied⁽¹⁾			Amount		Per Square Foot⁽²⁾
As of March 31, 2019
New York:
1633 Broadway	West Side		100.0	%		2,497,354		98.4	%		93.2	%	$	167,518	$	73.81
1301 Avenue of the Americas	Sixth Avenue / Rock Center		100.0	%		1,781,571		97.9	%		97.9	%		134,808		77.80
1325 Avenue of the Americas	Sixth Avenue / Rock Center		100.0	%		810,660		98.0	%		80.5	%		43,486		68.71
31 West 52nd Street	Sixth Avenue / Rock Center		100.0	%		763,140		97.5	%		97.5	%		67,397		88.06
900 Third Avenue	East Side		100.0	%		598,638		92.8	%		91.7	%		39,080		71.46
712 Fifth Avenue	Madison / Fifth Avenue		50.0	%		543,411		70.8	%		70.8	%		44,373		115.58
60 Wall Street	Downtown		5.0	%		1,625,483		100.0	%		100.0	%		73,600		45.28	⁽³⁾

Subtotal / Weighted average						8,620,257		96.4	%		93.1	%		570,262		71.60

PGRE’s share						6,804,506		96.6	%		92.4	%		478,163		76.97

San Francisco:
One Market Plaza	South Financial District		49.0	%		1,579,705		99.2	%		97.9	%		129,567		82.67
One Front Street	North Financial District		100.0	%		644,961		92.0	%		89.2	%		42,437		73.13
50 Beale Street	South Financial District		31.1	%		665,933		99.7	%		96.5	%		41,253		64.50
111 Sutter Street ⁽⁴⁾	North Financial District		49.0	%		284,247		70.6	%		70.6	%		14,115		70.99

Subtotal / Weighted average						3,174,846		95.3	%		93.4	%		227,372		76.12

PGRE’s share						1,765,403		94.4	%		92.4	%		125,671		76.39

Washington, D.C.:
1899 Pennsylvania Avenue	CBD		100.0	%		190,955		90.4	%		90.4	%		14,595		84.15
Liberty Place	East End		100.0	%		173,025		98.0	%		94.0	%		13,915		85.20

Subtotal / Weighted average						363,980		94.0	%		92.1	%		28,510		84.65

PGRE’s share						363,980		94.0	%		92.1	%		28,510		84.65

Total / Weighted average						12,159,083		96.0	%		93.2	%	$	826,144	$	73.19

PGRE’s share						8,933,889		96.0	%		92.4	%	$	632,344	$	77.17

(1)	See page 35 for our definition of this measure.

(2)	Represents office and retail space only.

(3)	Represents “triple-net” rent.

(4)	Acquired on February 7, 2019.

- 26 -


		SAME STORE LEASED OCCUPANCY

(unaudited)


				As of March 31, 2019						As of December 31, 2018						Change in Same Store Leased %
Property	Paramount Ownership			Leased % ⁽¹⁾			Same Store Leased % ⁽¹⁾			Leased % ⁽¹⁾			Same Store Leased % ⁽¹⁾			Change in Same Store Leased %
New York:
1633 Broadway		100.0	%		98.4	%		98.4	%		95.4	%		95.4	%		3.0	%
1301 Avenue of the Americas		100.0	%		97.9	%		97.9	%		97.9	%		97.9	%		—	%
1325 Avenue of the Americas		100.0	%		98.0	%		98.0	%		96.7	%		96.7	%		1.3	%
31 West 52nd Street		100.0	%		97.5	%		97.5	%		97.5	%		97.5	%		—	%
900 Third Avenue		100.0	%		92.8	%		92.8	%		92.6	%		92.6	%		0.2	%
712 Fifth Avenue		50.0	%		70.8	%		70.8	%		88.4	%		88.4	%		(17.6	%)
60 Wall Street		5.0	%		100.0	%		100.0	%		100.0	%		100.0	%		—	%

Weighted average					96.4	%		96.4	%		96.5	%		96.5	%		(0.1	%)

PGRE’s share					96.6	%		96.6	%		96.0	%		96.0	%		0.6	%

San Francisco:
One Market Plaza		49.0	%		99.2	%		99.2	%		99.0	%		99.0	%		0.2	%
One Front Street		100.0	%		92.0	%		92.0	%		96.3	%		96.3	%		(4.3	%)
50 Beale Street		31.1	%		99.7	%		99.7	%		99.7	%		99.7	%		—	%
111 Sutter Street ⁽²⁾		49.0	%		70.6	%		—	%		—	%		—	%		—	%

Weighted average					95.3	%		97.7	%		98.5	%		98.5	%		(0.8	%)

PGRE’s share					94.4	%		96.4	%		98.0	%		98.0	%		(1.6	%)

Washington, D.C.:
1899 Pennsylvania Avenue		100.0	%		90.4	%		90.4	%		100.0	%		100.0	%		(9.6	%)
Liberty Place		100.0	%		98.0	%		98.0	%		95.8	%		95.8	%		2.2	%

Weighted average					94.0	%		94.0	%		98.0	%		98.0	%		(4.0	%)

PGRE’s share					94.0	%		94.0	%		98.0	%		98.0	%		(4.0	%)

Weighted average					96.0	%		96.6	%		97.0	%		97.0	%		(0.4	%)

PGRE’s share					96.0	%		96.4	%		96.4	%		96.4	%		—	%

⁽¹⁾	See page 35 for our definition of this measure.

⁽²⁾	Acquired on February 7, 2019.

- 27 -


		TOP TENANTS AND INDUSTRY DIVERSIFICATION

(unaudited and in thousands, except square feet and per square foot amounts)


									PGRE’s Share of
	Property		Lease Expiration			Total Square Feet Occupied			Total Square Feet Occupied			% of Total Square Feet			Annualized Rent ⁽¹⁾				% of Annualized Rent
	Property		Lease Expiration			Total Square Feet Occupied			Total Square Feet Occupied			% of Total Square Feet			Amount		Per Square Foot		% of Annualized Rent
Top 10 Tenants:
As of March 31, 2019
Barclays Capital, Inc.		1301 Avenue of the Americas		Dec-2020			497,418			497,418			5.6	%	$	32,505	$	65.35		5.1	%
Allianz Global Investors, LP		1633 Broadway		Jan-2031			320,911			320,911			3.6	%		28,726		89.51		4.5	%
Credit Agricole Corporate & Investment Bank		1301 Avenue of the Americas		Feb-2023			312,679			312,679			3.5	%		26,794		85.69		4.2	%
Clifford Chance LLP		31 West 52nd Street		Jun-2024			328,992			328,992			3.7	%		26,538		80.66		4.2	%
Norton Rose Fulbright		1301 Avenue of the Americas		Sep-2034	⁽²⁾		320,325	⁽²⁾		320,325	⁽²⁾		3.6	%		25,537		79.72		4.0	%
Morgan Stanley & Company		1633 Broadway		Mar-2032			260,829			260,829			2.9	%		19,532		74.88		3.1	%
WMG Acquisition Corp. (Warner Music Group)		1633 Broadway		Jul-2029			293,888			293,888			3.3	%		17,423		59.28		2.8	%
First Republic Bank		One Front Street		Jun-2025			232,479			232,479			2.6	%		16,344		70.30		2.6	%
Showtime Networks, Inc.		1633 Broadway		Jan-2026			238,880			238,880			2.7	%		14,852		62.17		2.3	%
Kasowitz Benson Torres & Friedman, LLP		1633 Broadway		Mar-2037			203,394			203,394			2.3	%		14,680		72.18		2.3	%


	PGRE’s Share of
	Square Feet Occupied		% of Occupied Square Feet			Annualized Rent ⁽¹⁾		% of Annualized Rent
Industry Diversification:
As of March 31, 2019
Legal Services		1,866,039		22.7	%	$	147,078		23.3	%
Financial Services—Commercial and Investment Banking		1,802,062		21.9	%		132,577		21.0	%
Technology and Media		1,643,000		20.0	%		115,960		18.3	%
Financial Services, all others		972,669		11.8	%		85,877		13.6	%
Insurance		554,400		6.7	%		45,407		7.2	%
Retail		172,555		2.1	%		16,443		2.6	%
Consumer Products		197,138		2.4	%		15,248		2.4	%
Travel & Leisure		203,575		2.5	%		13,912		2.2	%
Real Estate		174,619		2.1	%		13,422		2.1	%
Other		637,789		7.8	%		46,420		7.3	%

⁽¹⁾	See page 35 for our definition of this measure.

⁽²⁾	116,462 of the square feet leased expires on March 31, 2032.

- 28 -


		LEASING ACTIVITY ⁽¹⁾

(unaudited)


	Total			New York			San Francisco			Washington, D.C.
Three Months Ended March 31, 2019

Total square feet leased		353,262			159,588			183,964			9,710

PGRE’s share of total square feet leased:		247,888			142,493			95,685			9,710
Initial rent ⁽²⁾	$	97.24		$	91.75		$	106.31		$	88.24
Weighted average lease term (in years)		11.2			14.4			6.9			6.9
Tenant improvements and leasing commissions:
Per square foot	$	112.97		$	152.62		$	62.04		$	35.45
Per square foot per annum	$	10.11		$	10.63		$	9.01		$	5.11
Percentage of initial rent		10.4	%		11.6	%		8.5	%		5.8	%
Rent concessions:
Average free rent period (in months)		10.1			14.6			3.8			7.4
Average free rent period per annum (in months)		0.9			1.0			0.6			1.1

Second generation space: ⁽²⁾
Square feet		180,162			77,715			95,379			7,068
GAAP basis:
Straight-line rent	$	104.50		$	95.41		$	113.20		$	87.09
Prior straight-line rent	$	92.31		$	99.32		$	87.40		$	81.49
Percentage increase (decrease)		13.2	%		(3.9	%)		29.5	%		6.9	%
Cash basis
Initial rent ⁽²⁾	$	101.96		$	97.84		$	106.31		$	88.48
Prior escalated rent ⁽²⁾	$	96.58		$	104.87		$	90.74		$	84.25
Percentage increase (decrease)		5.6	%		(6.7	%)		17.2	%		5.0	%

⁽¹⁾	The leasing statistics, except for square feet leased, represent office space only.

⁽²⁾	See page 35 for our definition of this measure.

- 29 -


		LEASE EXPIRATIONS - TOTAL PORTFOLIO

(unaudited and in thousands, except square feet and per square foot amounts)


	Total Square Feet of Expiring Leases		PGRE’s Share of
Year of Lease Expiration ⁽²⁾			Square Feet of Expiring Leases		Annualized Rent ⁽¹⁾				% of Annualized Rent
Year of Lease Expiration ⁽²⁾			Square Feet of Expiring Leases		Amount		Per Square Foot⁽³⁾		% of Annualized Rent
Month to Month		40,143		33,118	$	1,619	$	55.44		0.2	%

2Q 2019		63,540		59,187		3,563		60.82		0.5	%
3Q 2019		92,176		89,288		6,767		74.17		1.0	%
4Q 2019		147,398		127,064		11,377		89.62		1.7	%

Total 2019		303,114		275,539		21,707		78.59		3.2	%
1Q 2020		356,178		149,695		10,395		66.47		1.6	%
Remaining 2020		417,985		327,202		25,104		77.80		3.8	%

2020		774,163		476,897		35,499		74.23		5.4	%
2021		1,300,744		1,094,669		75,191		69.87		11.5	%
2022		2,234,965		501,908		35,280		80.14		5.4	%
2023		763,820		702,828		56,422		83.48		8.6	%
2024		688,339		645,290		50,665		78.72		7.7	%
2025		1,053,241		703,213		55,237		78.60		8.4	%
2026		895,434		720,442		55,637		74.14		8.5	%
2027		231,799		164,723		13,442		81.58		2.1	%
2028		216,489		193,575		15,171		78.92		2.3	%
Thereafter		3,169,655		3,063,808		239,721		77.90		36.7	%

⁽¹⁾	See page 35 for our definition of this measure.

⁽²⁾	Leases that expire on the last day of the quarter are treated as occupied and are reflected as expiring space in the following quarter.

⁽³⁾	Represents office and retail space only.

- 30 -


		LEASE EXPIRATIONS - NEW YORK

(unaudited and in thousands, except square feet and per square foot amounts)


	Total Square Feet of Expiring Leases		PGRE’s Share of
Year of Lease Expiration ⁽²⁾			Square Feet of Expiring Leases		Annualized Rent ⁽¹⁾				% of Annualized Rent
Year of Lease Expiration ⁽²⁾			Square Feet of Expiring Leases		Amount		Per Square Foot⁽³⁾		% of Annualized Rent
Month to Month		15,620		15,620	$	942	$	95.38		0.2	%

2Q 2019		21,852		20,276		1,270		65.00		0.3	%
3Q 2019		82,452		80,780		6,403		77.60		1.3	%
4Q 2019		100,945		99,594		9,445		94.96		1.9	%

Total 2019		205,249		200,650		17,118		85.17		3.5	%
1Q 2020		44,156		34,175		2,583		75.59		0.5	%
Remaining 2020		273,265		239,177		18,339		78.14		3.7	%

2020		317,421		273,352		20,922		77.82		4.2	%
2021		875,387		869,280		58,957		69.80		11.8	%
2022		1,791,733		234,355		12,699		71.02		2.5	%
2023		554,599		525,646		40,622		81.62		8.2	%
2024		568,012		561,201		43,268		77.29		8.7	%
2025		140,624		103,620		9,281		89.57		1.9	%
2026		593,777		572,355		43,557		72.19		8.7	%
2027		85,378		85,378		7,197		84.29		1.4	%
2028		147,554		136,133		10,897		80.64		2.2	%
Thereafter		3,008,663		2,989,993		232,722		77.48		46.7	%

⁽¹⁾	See page 35 for our definition of this measure.

⁽²⁾	Leases that expire on the last day of the quarter are treated as occupied and are reflected as expiring space in the following quarter.

⁽³⁾	Represents office and retail space only.

- 31 -


		LEASE EXPIRATIONS - SAN FRANCISCO

(unaudited and in thousands, except square feet and per square foot amounts)


	Total		PGRE’s Share of
Year of Lease Expiration ⁽²⁾	Square Feet of Expiring Leases		Square Feet of Expiring Leases		Annualized Rent ⁽¹⁾				% of Annualized Rent
Year of Lease Expiration ⁽²⁾	Square Feet of Expiring Leases		Square Feet of Expiring Leases		Amount		Per Square Foot⁽³⁾		% of Annualized Rent
Month to Month		18,369		11,344	$	677	$	46.24		0.5	%

2Q 2019		41,688		38,911		2,293		58.76		1.8	%
3Q 2019		2,384		1,168		60		51.41		0.0	%
4Q 2019		43,992		25,009		1,722		68.86		1.3	%

Total 2019		88,064		65,088		4,075		62.54		3.1	%
1Q 2020		290,887		94,385		6,049		59.26		4.7	%
Remaining 2020		140,610		83,915		6,413		76.48		5.0	%

2020		431,497		178,300		12,462		67.41		9.7	%
2021		412,675		212,707		14,706		69.26		11.5	%
2022		418,625		242,946		20,653		84.99		16.2	%
2023		72,005		39,966		3,777		93.89		2.9	%
2024		99,876		63,638		5,478		86.42		4.3	%
2025		863,227		550,203		41,479		75.45		32.3	%
2026		273,411		119,841		9,950		83.00		7.8	%
2027		131,526		64,450		4,918		76.22		3.8	%
2028		59,658		48,165		3,502		73.19		2.7	%
Thereafter		156,784		69,607		6,637		95.35		5.2	%

⁽¹⁾	See page 35 for our definition of this measure.

⁽²⁾	Leases that expire on the last day of the quarter are treated as occupied and are reflected as expiring space in the following quarter.

⁽³⁾	Represents office and retail space only.

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		LEASE EXPIRATIONS - WASHINGTON, D.C.

(unaudited and in thousands, except square feet and per square foot amounts)


			PGRE’s Share of
Year of Lease Expiration ⁽²⁾	Total Square Feet of Expiring Leases		Square Feet of Expiring Leases		Annualized Rent ⁽¹⁾				% of Annualized Rent
Year of Lease Expiration ⁽²⁾	Total Square Feet of Expiring Leases		Square Feet of Expiring Leases		Amount		Per Square Foot⁽³⁾		% of Annualized Rent
Month to Month		6,154		6,154	$	—	$	—		—	%

2Q 2019		—		—		—		—		—	%
3Q 2019		7,340		7,340		304		41.36		1.0	%
4Q 2019		2,461		2,461		210		85.49		0.7	%

Total 2019		9,801		9,801		514		52.44		1.7	%
1Q 2020		21,135		21,135		1,763		83.40		6.1	%
Remaining 2020		4,110		4,110		352		85.59		1.2	%

2020		25,245		25,245		2,115		83.76		7.3	%
2021		12,682		12,682		1,528		84.09		5.3	%
2022		24,607		24,607		1,928		78.36		6.6	%
2023		137,216		137,216		12,023		86.49		41.3	%
2024		20,451		20,451		1,919		94.32		6.6	%
2025		49,390		49,390		4,477		90.64		15.4	%
2026		28,246		28,246		2,130		75.40		7.3	%
2027		14,895		14,895		1,327		89.11		4.6	%
2028		9,277		9,277		772		83.25		2.7	%
Thereafter		4,208		4,208		362		85.95		1.2	%

⁽¹⁾	See page 35 for our definition of this measure.

⁽²⁾	Leases that expire on the last day of the quarter are treated as occupied and are reflected as expiring space in the following quarter.

⁽³⁾	Represents office and retail space only.

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		CASH BASIS CAPITAL EXPENDITURES

(unaudited and in thousands)


	Three Months Ended March 31, 2019
	Total		New York		San Francisco		Washington, D.C.		Other
Capital Expenditures: ⁽¹⁾
Expenditures to maintain assets	$	3,535	$	2,312	$	1,022	$	153	$	48
Second generation tenant improvements		14,196		11,568		2,557		71		—
Second generation leasing commissions		1,310		1,026		284		—		—
First generation leasing costs and capital expenditures		847		—		847		—		—

Total Capital Expenditures	$	19,888	$	14,906	$	4,710	$	224	$	48

Redevelopment Expenditures ⁽¹⁾
31 West 52nd Street (Lobby Renovation)	$	3,148	$	3,148	$	—	$	—	$	—
One Market Plaza		1,689		—		1,689		—		—
Other		4,186		2,420		1,766		—		—

Total Redevelopment Expenditures	$	9,023	$	5,568	$	3,455	$	—	$	—


	Three Months Ended March 31, 2018
	Total		New York		San Francisco		Washington, D.C.		Other
Capital Expenditures: ⁽¹⁾
Expenditures to maintain assets	$	3,702	$	2,903	$	463	$	235	$	101
Second generation tenant improvements		13,499		12,610		855		34		—
Second generation leasing commissions		1,484		583		759		142		—
First generation leasing costs and capital expenditures		4,654		111		2,484		2,059		—

Total Capital Expenditures	$	23,339	$	16,207	$	4,561	$	2,470	$	101

Redevelopment Expenditures ⁽¹⁾
31 West 52nd Street (Lobby Renovation)	$	2,964	$	2,964	$	—	$	—	$	—
One Market Plaza		754		—		754		—		—
Other		587		587		—		—		—

Total Redevelopment Expenditures	$	4,305	$	3,551	$	754	$	—	$	—

⁽¹⁾	See page 35 for our definition of this measure.

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		DEFINITIONS

We use and present various non-GAAP measures in this Supplemental Operating and Financial Data report. The following section contains definitions of these measures, describes our use of them and provides information regarding why we believe they are meaningful. Other real estate companies may use different methodologies for calculating these measures, and accordingly, our presentation of these measures may not be comparable to other real estate companies. These non-GAAP measures should not be considered a substitute for, and should only be considered together with and as a supplement to, financial information presented in accordance with GAAP.

Funds from Operations (“FFO”) is a supplemental measure of our performance. FFO is presented 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. FFO is not intended to be a measure of cash flow or liquidity. FFO attributable to common stockholders represents the Company’s share of FFO that is attributable to common stockholders and is calculated by reducing from FFO, the noncontrolling interests’ share of FFO in consolidated joint ventures, real estate funds and Operating Partnership.

Core Funds from Operations (“Core FFO”) is 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. Core FFO is not intended to be a measure of cash flow or liquidity. Core FFO attributable to common stockholders represents the Company’s share of Core FFO that is attributable to common stockholders and is calculated by reducing from Core FFO, the noncontrolling interests’ share of Core FFO in consolidated joint ventures, real estate funds and Operating Partnership.

Funds Available for Distribution (“FAD”) is a supplemental measure of our operating performance and is calculated as Core FFO adjusted for (i) capital expenditures to maintain assets, (ii) tenant improvements and leasing commissions incurred for second generation leases, (iii) straight-line rent adjustments, (iv) amortization of above and below-market leases, (v) amortization of stock-based compensation expense and (vi) amortization of deferred financing costs. FAD is commonly used in the real estate industry along with cash flow from operating activities as a measure of the ability to generate cash from operations and the ability to fund cash needs and make distributions to our stockholders. FAD provides information regarding our operating performance that would not otherwise be available and is useful to investors and analysts in assessing our operating performance. Additionally, although FAD is not intended to be a liquidity measure, as it does not make adjustments for the changes in working capital, we believe that FAD may provide investors and analysts with useful supplemental information regarding our ability to generate cash from operations and our ability to make distributions to our stockholders. Furthermore, we believe that FAD is frequently used by investors and analysts in evaluating our performance as a REIT. FAD attributable to common stockholders represents the Company’s share of FAD that is attributable to common stockholders and is calculated by reducing from FAD, the noncontrolling interests’ share of FAD in consolidated joint ventures, real estate funds and Operating Partnership.

Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (“EBITDAre”) is a supplemental measure of our operating performance. EBITDAre is presented in accordance with the definition adopted by Nareit. Nareit defines EBITDAre as GAAP net income (loss) adjusted to exclude interest expense, income taxes, depreciation and amortization expenses, net gains from sales of depreciated real estate assets and impairment losses on depreciable real estate, including our share of such adjustments of unconsolidated joint ventures. EBITDAre provides information regarding our operating performance that would not otherwise be available and may be useful to an investor in assessing our ability to incur and service debt. EBITDAre should not be considered as an indication of our financial performance or a measure of our cash flow or liquidity. We also present PGRE’s share of EBITDAre which represents our share of EBITDAre generated by our consolidated and unconsolidated joint ventures, based on our percentage ownership in the underlying assets.

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		DEFINITIONS - CONTINUED

Adjusted EBITDAre is a supplemental measure that is calculated by adjusting EBITDAre to eliminate the impact of the performance of our real estate funds, unrealized gains or losses on interest rate swaps, transaction related costs, gains or losses on early extinguishment of debt and certain other items that may vary from period to period. Adjusted EBITDAre enhances the comparability of EBITDAre across periods. In future periods, we may also exclude other items from Adjusted EBITDAre that we believe may help investors compare our results. We also present PGRE’s share of Adjusted EBITDAre, which represents our share of Adjusted EBITDAre generated by our consolidated and unconsolidated joint ventures based on our percentage ownership in the underlying assets.

Net Operating Income (“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 that were owned by us in a similar manner during both the current period and prior reporting periods, and represents Same Store NOI from consolidated and unconsolidated joint ventures based on our percentage ownership in the underlying assets. Same Store NOI also excludes lease termination income, impairment of receivables arising from operating leases and certain other items that may vary from period to period. We also present Same Store Cash NOI, which excludes the effect of non-cash items such as the straight-line rent adjustments and the amortization of above and below-market leases.

PGRE’s Share of Total Debt represents our share of debt of consolidated and unconsolidated joint ventures, based on our percentage ownership in the underlying assets. We believe that PGRE’s share of total debt provides useful information to investors regarding our financial condition because it includes our share of debt from unconsolidated joint ventures and excludes the noncontrolling interests’ share of debt from consolidated joint ventures that is attributable to our partners.

Annualized Rent represents the end of period monthly base rent plus escalations in accordance with the lease terms, multiplied by 12.

Leased % represents percentage of square feet that is leased, including signed leases not yet commenced.

Same Store Leased % represents percentage of square feet that is leased, including signed leases not yet commenced, for properties that were owned by us in a similar manner during both the current period and prior reporting periods.

Occupied % represents the percentage of space for which we have commenced rental revenue in accordance with GAAP.

Initial Rent represents the weighted average cash basis starting rent per square foot and does not include free rent or periodic step-ups in rent.

Prior Escalated Rent represents the weighted average cash basis rent (including reimbursements) per square foot at expiration.

Second Generation Space represents space leased that has been vacant for less than twelve months.

Capital Expenditures consist of expenditures to maintain assets, tenant improvement allowances and leasing commissions. Expenditures to Maintain Assets include capital expenditures to maintain current revenues. Second Generation Tenant Improvements and Leasing Commissions represent tenant improvements and leasing commissions incurred in leasing second generation space. First Generation Leasing Costs and Other Capital Expenditures include capital expenditures completed in the year of acquisition and the following two years that were planned at the time of acquisition, as well as tenant improvements and leasing commissions on space leased that has been vacant for more than twelve months. Development Expenditures consist of hard and soft costs related to the development of a property in getting it ready for its intended use.

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