pgre-ex992

EX-99.2 3 pgre-ex992_7.htm EX-99.2 pgre-ex992_7.htm

Exhibit 99.2

SUPPLEMENTAL OPERATING AND FINANCIAL DATA

FOR THE QUARTER ENDED JUNE 30, 2020


		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 negative impact of the coronavirus 2019 (COVID-19) global pandemic on the U.S., regional and global economies and our tenants' financial condition and results of operations, the ability to enter into new leases or renew leases on favorable terms, dependence on tenants’ financial condition, 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
	Financial Highlights	6
	Consolidated Balance Sheets	7
	Consolidated Statements of Income	8
	Select Income Statement Data	9
	Funds From Operations ("FFO")	10
	Funds Available for Distribution ("FAD")	11
	Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate ("EBITDAre")	12
	Net Operating Income ("NOI")	13 - 15
	Same Store Results	16 - 19
	Consolidated Joint Ventures and Fund	20 - 25
	Unconsolidated Joint Ventures	26 - 31
	Capital Structure	32
	Debt Analysis	33
	Debt Maturities	34

Selected Property Data
	Portfolio Summary	35
	Same Store Leased Occupancy	36 - 37
	Top Tenants and Industry Diversification	38
	Leasing Activity	39 - 40
	Lease Expirations	41 - 44
	Cash Basis Capital Expenditures	45 - 46


Definitions		47 - 48

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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 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.

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
Colin Dyer		Director
Karin Klein		Director, Chair of Compensation Committee
Peter Linneman		Director, Chair of Audit Committee
Katharina Otto-Bernstein		Director
Mark Patterson		Director, Lead Independent Director, Chair of Nominating and Corporate Governance Committee
Greg Wright		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

Richard Skidmore	Daniel Ismail	Omotayo Okusanya	Vikram Malhotra
Goldman Sachs	Green Street Advisors	Mizuho Securities USA Inc.	Morgan Stanley
(801) 741-5459	(949) 640-8780	(646) 949-9672	(212) 761-7064
richard.skidmore@gs.com	dismail@greenst.com	omotayo.okusanya@mizuhogroup.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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		FINANCIAL HIGHLIGHTS

(unaudited and in thousands, except per share amounts)

			Three Months Ended							Six Months Ended
SELECTED FINANCIAL DATA			June 30, 2020			June 30, 2019		March 31, 2020		June 30, 2020			June 30, 2019

	Net (loss) income attributable to common stockholders:
		Continuing operations	$	(8,234	)	$	595	$	1,968	$	(6,266	)	$	2,404
		Discontinued operations		1,964			1,860		1,380		3,344			3,760
	Net (loss) income attributable to common stockholders		$	(6,270	)	$	2,455	$	3,348	$	(2,922	)	$	6,164

	Net (loss) income per share - basic and diluted:
		Per share from continuing operations	$	(0.04	)	$	0.00	$	0.01	$	(0.03	)	$	0.01
		Per share from discontinued operations		0.01			0.01		0.00		0.02			0.02
	Net (loss) income per share - basic and diluted		$	(0.03	)	$	0.01	$	0.01	$	(0.01	)	$	0.03

	Core FFO attributable to common stockholders⁽¹⁾		$	50,118		$	53,239	$	61,509	$	111,627		$	110,352
		Per share - diluted	$	0.23		$	0.23	$	0.27	$	0.50		$	0.47

	PGRE's share of Cash NOI ⁽¹⁾		$	89,216		$	91,812	$	98,529	$	187,745		$	184,881
	PGRE's share of NOI ⁽¹⁾		$	98,823		$	103,138	$	110,557	$	209,380		$	208,081

Same Store Cash NOI ⁽¹⁾	% Change			Same Store NOI ⁽¹⁾	% Change
Three Months Ended June 30, 2020 vs. June 30, 2019		(4.1	%)	Three Months Ended June 30, 2020 vs. June 30, 2019		0.9	%
Six Months Ended June 30, 2020 vs. June 30, 2019		0.1	%	Six Months Ended June 30, 2020 vs. June 30, 2019		1.2	%

PORTFOLIO STATISTICS (at PGRE Share)

	As of
	June 30, 2020			March 31, 2020			December 31, 2019			September 30, 2019			June 30, 2019
Leased % ⁽¹⁾		95.6	%		95.9	%		95.9	%		96.5	%		96.7	%

Same Store Leased % ⁽¹⁾	% Change			Same Store Leased % ⁽¹⁾	% Change
June 30, 2020 vs. March 31, 2020		(0.2	%)	June 30, 2020 vs. June 30, 2019		(0.9	%)
June 30, 2020 vs. December 31, 2019		(0.2	%)

COMMON SHARE DATA

		Three Months Ended
Share Price:		June 30, 2020			March 31, 2020			December 31, 2019			September 30, 2019			June 30, 2019
	High	$	10.38		$	15.00		$	13.99		$	14.42		$	15.11
	Low	$	6.95		$	6.42		$	12.65		$	12.77		$	13.53
	Closing (end of period)	$	7.71		$	8.80		$	13.92		$	13.35		$	14.01

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)			5.2	%		4.5	%		2.9	%		3.0	%		2.9	%

⁽¹⁾	See page 47 for our definition of this measure.

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		CONSOLIDATED BALANCE SHEETS

(unaudited and in thousands)

			June 30, 2020			December 31, 2019
Assets:
	Real estate, at cost:
		Land	$	1,966,237		$	1,966,237
		Buildings and improvements		5,957,831			5,923,648
				7,924,068			7,889,885
		Accumulated depreciation and amortization		(873,732	)		(790,216	)
	Real estate, net			7,050,336			7,099,669
	Cash and cash equivalents			522,502			306,215
	Restricted cash			33,957			25,272
	Investments in unconsolidated joint ventures			421,183			449,180
	Investments in unconsolidated real estate funds			13,041			10,317
	Accounts and other receivables			18,738			19,231
	Due from affiliates			-			36,918
	Deferred rent receivable			321,480			301,588
	Deferred charges, net			123,446			126,367
	Intangible assets, net			179,244			203,169
	Assets related to discontinued operations			103,915			104,836
	Other assets			45,340			51,373
Total assets			$	8,833,182		$	8,734,135

Liabilities:
	Notes and mortgages payable, net		$	3,790,430		$	3,783,851
	Revolving credit facility			200,000			36,918
	Accounts payable and accrued expenses			105,924			117,356
	Dividends and distributions payable			24,292			25,255
	Intangible liabilities, net			65,769			73,789
	Other liabilities			59,091			66,004
Total liabilities				4,245,506			4,103,173

Equity:
	Paramount Group, Inc. equity			3,723,510			3,785,730
	Noncontrolling interests in:
		Consolidated joint ventures		436,183			360,778
		Consolidated real estate fund		79,243			72,396
		Operating Partnership		348,740			412,058
Total equity				4,587,676			4,630,962

Total liabilities and equity			$	8,833,182		$	8,734,135

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CONSOLIDATED STATEMENTS OF INCOME

(unaudited and in thousands, except per share amounts)

		Three Months Ended									Six Months Ended
		June 30, 2020			June 30, 2019			March 31, 2020			June 30, 2020			June 30, 2019
Revenues:
	Rental revenue ⁽¹⁾	$	163,989		$	174,044		$	175,425		$	339,414		$	349,385
	Fee and other income ⁽¹⁾		7,129			7,299			8,561			15,690			16,347
Total revenues			171,118			181,343			183,986			355,104			365,732

Expenses:
	Operating		64,313			64,736			67,014			131,327			130,197
	Depreciation and amortization		58,716			60,277			58,427			117,143			120,989
	General and administrative ⁽¹⁾		17,901			17,695			12,249			30,150			35,138
	Transaction related costs		258			182			203			461			918
Total expenses			141,188			142,890			137,893			279,081			287,242

Other income (expense):
	Loss from unconsolidated joint ventures		(5,955	)		(456	)		(4,221	)		(10,176	)		(1,483	)
	Income from unconsolidated real estate funds		89			19			52			141			65
	Interest and other income (loss), net ⁽¹⁾		2,252			2,583			(996	)		1,256			6,483
	Interest and debt expense ⁽¹⁾		(36,009	)		(37,213	)		(36,619	)		(72,628	)		(74,137	)
(Loss) income from continuing operations, before income taxes			(9,693	)		3,386			4,309			(5,384	)		9,418
	Income tax expense		(138	)		(268	)		(604	)		(742	)		(1,406	)
(Loss) income from continuing operations, net			(9,831	)		3,118			3,705			(6,126	)		8,012
Income from discontinued operations, net			2,147			2,056			1,521			3,668			4,162
Net (loss) income			(7,684	)		5,174			5,226			(2,458	)		12,174
Less net (income) loss attributable to noncontrolling interests in:
	Consolidated joint ventures		(405	)		(2,408	)		(1,514	)		(1,919	)		(5,202	)
	Consolidated real estate fund		1,235			(53	)		(23	)		1,212			(147	)
	Operating Partnership		584			(258	)		(341	)		243			(661	)
Net (loss) income attributable to common stockholders		$	(6,270	)	$	2,455		$	3,348		$	(2,922	)	$	6,164

Net (loss) income per diluted share:
	(Loss) income from continuing operations, net	$	(0.04	)	$	0.00		$	0.01		$	(0.03	)	$	0.01
	Income from discontinued operations, net		0.01			0.01			0.00			0.02			0.02
Net (loss) income per diluted share		$	(0.03	)	$	0.01		$	0.01		$	(0.01	)	$	0.03

⁽¹⁾	See page 9 for details.

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		SELECT INCOME STATEMENT DATA

(unaudited and in thousands)

		Three Months Ended						Six Months Ended
Rental Revenue:		June 30, 2020		June 30, 2019		March 31, 2020		June 30, 2020		June 30, 2019
	Property rentals	$	143,422	$	148,565	$	149,138	$	292,560	$	294,757
	Tenant reimbursements		10,099		12,120		14,049		24,148		25,385
	Straight-line rent adjustments		9,233		10,612		10,695		19,928		22,281
	Amortization of above and below-market leases, net		1,235		2,747		1,543		2,778		6,043
	Lease termination income		-		-		-		-		919
Total rental revenue		$	163,989	$	174,044	$	175,425	$	339,414	$	349,385

			Three Months Ended						Six Months Ended
Fee and Other Income:			June 30, 2020		June 30, 2019		March 31, 2020		June 30, 2020		June 30, 2019
	Property management		$	2,239	$	1,599	$	2,450	$	4,689	$	3,241
	Asset management			3,571		2,290		3,521		7,092		4,608
	Acquisition and disposition			-		-		-		-		1,331
	Other			399		324		359		758		1,032
	Total fee income			6,209		4,213		6,330		12,539		10,212
	Other (primarily parking income and tenant requested services, including
		overtime heating and cooling)		920		3,086		2,231		3,151		6,135
Total fee and other income			$	7,129	$	7,299	$	8,561	$	15,690	$	16,347

			Three Months Ended							Six Months Ended
General and Administrative:			June 30, 2020		June 30, 2019		March 31, 2020			June 30, 2020			June 30, 2019
	General and administrative expenses		$	16,077	$	16,853	$	14,233		$	30,310		$	32,227
	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 (loss), net")		1,824		842		(1,984	)		(160	)		2,911
Total general and administrative			$	17,901	$	17,695	$	12,249		$	30,150		$	35,138

			Three Months Ended							Six Months Ended
Interest and Other Income (Loss), net:			June 30, 2020		June 30, 2019		March 31, 2020			June 30, 2020			June 30, 2019
	Interest income, net		$	428	$	1,741	$	988		$	1,416		$	3,118
	Mark-to-market of deferred compensation plan assets (offset by an
		increase (decrease) in the mark-to-market of plan assets, which is
		included in "general and administrative" expenses)		1,824		842		(1,984	)		(160	)		2,911
	Preferred equity investment income ⁽¹⁾			-		-		-			-			454
Total interest and other income (loss), net			$	2,252	$	2,583	$	(996	)	$	1,256		$	6,483

⁽¹⁾	Represents 100% of the investment income from a preferred equity investment that was redeemed on March 1, 2019.

		Three Months Ended						Six Months Ended
Interest and Debt Expense:		June 30, 2020		June 30, 2019		March 31, 2020		June 30, 2020		June 30, 2019
	Interest expense	$	33,690	$	34,388	$	34,301	$	67,991	$	68,511
	Amortization of deferred financing costs		2,319		2,825		2,318		4,637		5,626
Total interest and debt expense		$	36,009	$	37,213	$	36,619	$	72,628	$	74,137

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		FFO

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

			Three Months Ended									Six Months Ended
			June 30, 2020			June 30, 2019			March 31, 2020			June 30, 2020			June 30, 2019
Reconciliation of net (loss) income to FFO and Core FFO:
	Net (loss) income		$	(7,684	)	$	5,174		$	5,226		$	(2,458	)	$	12,174
	Real estate depreciation and amortization (including our share
		of unconsolidated joint ventures)		70,546			63,721			70,940			141,486			127,409
	Adjustments related to discontinued operations			-			2,348			690			690			4,725
	FFO ⁽¹⁾			62,862			71,243			76,856			139,718			144,308
	Less FFO attributable to noncontrolling interests in:
		Consolidated joint ventures		(8,711	)		(11,277	)		(8,969	)		(17,680	)		(23,025	)
		Consolidated real estate fund		1,235			(53	)		(23	)		1,212			(147	)
	FFO attributable to Paramount Group Operating Partnership			55,386			59,913			67,864			123,250			121,136
	Less FFO attributable to noncontrolling interests in Operating Partnership			(4,723	)		(5,705	)		(6,278	)		(11,001	)		(11,703	)
	FFO attributable to common stockholders⁽¹⁾		$	50,663		$	54,208		$	61,586		$	112,249		$	109,433
	Per diluted share		$	0.23		$	0.23		$	0.27		$	0.50		$	0.47

	FFO		$	62,862		$	71,243		$	76,856		$	139,718		$	144,308
	Non-core items:
		Our share of distributions from 712 Fifth Avenue in excess of earnings		(920	)		(1,331	)		(388	)		(1,308	)		(61	)
		Other, net		324			260			303			627			1,083
	Core FFO ⁽¹⁾			62,266			70,172			76,771			139,037			145,330
	Less Core FFO attributable to noncontrolling interests in:
		Consolidated joint ventures		(8,711	)		(11,277	)		(8,969	)		(17,680	)		(23,025	)
		Consolidated real estate fund		1,235			(53	)		(23	)		1,212			(147	)
	Core FFO attributable to Paramount Group Operating Partnership			54,790			58,842			67,779			122,569			122,158
	Less Core FFO attributable to noncontrolling interests in Operating Partnership			(4,672	)		(5,603	)		(6,270	)		(10,942	)		(11,806	)
	Core FFO attributable to common stockholders ⁽¹⁾		$	50,118		$	53,239		$	61,509		$	111,627		$	110,352
	Per diluted share		$	0.23		$	0.23		$	0.27		$	0.50		$	0.47

Reconciliation of weighted average shares outstanding:
	Weighted average shares outstanding			221,573,199			234,329,904			227,769,213			224,671,206			233,877,117
	Effect of dilutive securities			4,225			25,960			35,963			20,164			31,119
	Denominator for FFO and Core FFO per diluted share			221,577,424			234,355,864			227,805,176			224,691,370			233,908,236

⁽¹⁾	See page 47 for our definition of this measure.

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		FAD

(unaudited and in thousands)

				Three Months Ended									Six Months Ended
				June 30, 2020			June 30, 2019			March 31, 2020			June 30, 2020			June 30, 2019
Reconciliation of Core FFO to FAD:
	Core FFO			$	62,266		$	70,172		$	76,771		$	139,037		$	145,330
	Add (subtract) adjustments to arrive at FAD:
		Straight-line rent adjustments (including our share
			of unconsolidated joint ventures)		(10,037	)		(10,937	)		(11,804	)		(21,841	)		(22,806	)
		Amortization of above and below-market leases, net (including
			our share of unconsolidated joint ventures)		(1,701	)		(2,745	)		(2,832	)		(4,533	)		(5,985	)
		Amortization of deferred financing costs (including our share
			of unconsolidated joint ventures)		2,651			2,977			2,630			5,281			5,903
		Amortization of stock-based compensation expense			4,241			5,083			5,397			9,638			12,685
		Expenditures to maintain assets			(3,861	)		(3,894	)		(4,709	)		(8,570	)		(7,276	)
		Second generation tenant improvements and leasing commissions			(10,762	)		(13,759	)		(23,933	)		(34,695	)		(29,194	)
		Adjustments related to discontinued operations			114			(633	)		119			233			(746	)
	FAD ⁽¹⁾				42,911			46,264			41,639			84,550			97,911
	Less FAD attributable to noncontrolling interests in:
		Consolidated joint ventures			(3,066	)		(6,269	)		(2,773	)		(5,764	)		(12,802	)
		Consolidated real estate fund			1,235			(53	)		(23	)		1,212			(147	)
	FAD attributable to Paramount Group Operating Partnership				41,080			39,942			38,843			79,998			84,962
	Less FAD attributable to noncontrolling interests in Operating Partnership				(3,503	)		(3,803	)		(3,593	)		(7,103	)		(8,213	)
	FAD attributable to common stockholders ^{(1) (2)}			$	37,577		$	36,139		$	35,250		$	72,895		$	76,749

	Dividends declared on common stock			$	22,176		$	23,439		$	22,246		$	44,422		$	46,887

⁽¹⁾	See page 47 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									Six Months Ended
				June 30, 2020			June 30, 2019			March 31, 2020			June 30, 2020			June 30, 2019
Reconciliation of net (loss) income to EBITDAre and Adjusted EBITDAre:
	Net (loss) income			$	(7,684	)	$	5,174		$	5,226		$	(2,458	)	$	12,174
	Add (subtract) adjustments to arrive at EBITDAre and Adjusted EBITDAre:
		Depreciation and amortization (including our share
			of unconsolidated joint ventures)		70,546			63,721			70,940			141,486			127,409
		Interest and debt expense (including our share
			of unconsolidated joint ventures)		41,412			39,827			42,121			83,533			78,993
		Income tax expense (including our share of
			unconsolidated joint ventures)		140			270			618			758			1,409
		Adjustments related to discontinued operations			-			2,348			690			690			4,725
	EBITDAre⁽¹⁾				104,414			111,340			119,595			224,009			224,710
	Less EBITDAre attributable to noncontrolling interests in:
		Consolidated joint ventures			(15,750	)		(17,919	)		(15,793	)		(31,543	)		(36,248	)
		Consolidated real estate fund			1,211			(54	)		(131	)		1,080			(152	)
	PGRE's share of EBITDAre ⁽¹⁾			$	89,875		$	93,367		$	103,671		$	193,546		$	188,310



	EBITDAre			$	104,414		$	111,340		$	119,595		$	224,009		$	224,710
	Add (subtract) adjustments to arrive at Adjusted EBITDAre:
		Our share of distributions from 712 Fifth Avenue in excess of earnings			(920	)		(1,331	)		(388	)		(1,308	)		(61	)
		Other, net			1,611			156			29			1,640			790
	Adjusted EBITDAre ⁽¹⁾				105,105			110,165			119,236			224,341			225,439
	Less Adjusted EBITDAre attributable to noncontrolling interests in:
		Consolidated joint ventures			(15,750	)		(17,919	)		(15,793	)		(31,543	)		(36,248	)
	PGRE's share of Adjusted EBITDAre ⁽¹⁾			$	89,355		$	92,246		$	103,443		$	192,798		$	189,191

⁽¹⁾	See page 47 for our definition of this measure.

- 12 -


		NOI

(unaudited and in thousands)

				Three Months Ended									Six Months Ended
				June 30, 2020			June 30, 2019			March 31, 2020			June 30, 2020			June 30, 2019
Reconciliation of net (loss) income to NOI and Cash NOI:
	Net (loss) income			$	(7,684	)	$	5,174		$	5,226		$	(2,458	)	$	12,174
	Add (subtract) adjustments to arrive at NOI and Cash NOI:
		Depreciation and amortization			58,716			60,277			58,427			117,143			120,989
		General and administrative			17,901			17,695			12,249			30,150			35,138
		Interest and debt expense			36,009			37,213			36,619			72,628			74,137
		Income tax expense			138			268			604			742			1,406
		NOI from unconsolidated joint ventures			10,376			4,185			13,392			23,768			9,596
		Loss from unconsolidated joint ventures			5,955			456			4,221			10,176			1,483
		Fee income			(6,209	)		(4,213	)		(6,330	)		(12,539	)		(10,212	)
		Interest and other (income) loss, net			(2,252	)		(2,583	)		996			(1,256	)		(6,483	)
		Adjustments related to discontinued operations			-			2,348			690			690			4,725
		Other, net			169			163			151			320			853
	NOI ⁽¹⁾				113,119			120,983			126,245			239,364			243,806
	Less NOI attributable to noncontrolling interests in:
		Consolidated joint ventures			(15,733	)		(17,839	)		(15,691	)		(31,424	)		(35,748	)
		Consolidated real estate fund			1,437			(6	)		3			1,440			23
	PGRE's share of NOI⁽¹⁾			$	98,823		$	103,138		$	110,557		$	209,380		$	208,081

	NOI			$	113,119		$	120,983		$	126,245		$	239,364		$	243,806
	Less:
		Straight-line rent adjustments (including our share of
			unconsolidated joint ventures)		(10,037	)		(10,937	)		(11,804	)		(21,841	)		(22,806	)
		Amortization of above and below-market leases, net (including
			our share of unconsolidated joint ventures)		(1,701	)		(2,745	)		(2,832	)		(4,533	)		(5,985	)
		Adjustments related to discontinued operations			114			100			119			233			211
	Cash NOI⁽¹⁾				101,495			107,401			111,728			213,223			215,226
	Less Cash NOI attributable to noncontrolling interests in:
		Consolidated joint ventures			(13,716	)		(15,583	)		(13,202	)		(26,918	)		(30,368	)
		Consolidated real estate fund			1,437			(6	)		3			1,440			23
	PGRE's share of Cash NOI ⁽¹⁾			$	89,216		$	91,812		$	98,529		$	187,745		$	184,881

⁽¹⁾	See page 47 for our definition of this measure.

- 13 -


		NOI

(unaudited and in thousands)

				Three Months Ended June 30, 2020
				Total			New York			San Francisco			Other
Reconciliation of net (loss) income to NOI and Cash NOI:
	Net (loss) income			$	(7,684	)	$	1,955		$	4,169		$	(13,808	)
	Add (subtract) adjustments to arrive at NOI and Cash NOI:
		Depreciation and amortization			58,716			39,927			17,680			1,109
		General and administrative			17,901			-			-			17,901
		Interest and debt expense			36,009			21,804			12,323			1,882
		Income tax expense			138			-			-			138
		NOI from unconsolidated joint ventures			10,376			2,680			9,165			(1,469	)
		Loss (income) from unconsolidated joint ventures			5,955			(220	)		4,651			1,524
		Fee income			(6,209	)		-			-			(6,209	)
		Interest and other income, net			(2,252	)		-			(50	)		(2,202	)
		Other, net			169			-			-			169
	NOI ⁽¹⁾				113,119			66,146			47,938			(965	)
	Less NOI attributable to noncontrolling interests in:
		Consolidated joint ventures			(15,733	)		(430	)		(15,303	)		-
		Consolidated real estate fund			1,437			-			-			1,437
	PGRE's share of NOI for the three months ended June 30, 2020			$	98,823		$	65,716		$	32,635		$	472
	PGRE's share of NOI for the three months ended June 30, 2019			$	103,138		$	75,123		$	24,326		$	3,689

	NOI			$	113,119		$	66,146		$	47,938		$	(965	)
	Add (subtract) adjustments to arrive at Cash NOI:
		Straight-line rent adjustments (including our share
			of unconsolidated joint ventures)		(10,037	)		(5,768	)		(4,241	)		(28	)
		Amortization of above and below-market leases, net (including
			our share of unconsolidated joint ventures)		(1,701	)		388			(2,089	)		-
		Adjustments related to discontinued operations			114			-			-			114
	Cash NOI⁽¹⁾				101,495			60,766			41,608			(879	)
	Less Cash NOI attributable to noncontrolling interests in:
		Consolidated joint ventures			(13,716	)		(504	)		(13,212	)		-
		Consolidated real estate fund			1,437			-			-			1,437
	PGRE's share of Cash NOI for the three months ended June 30, 2020			$	89,216		$	60,262		$	28,396		$	558
	PGRE's share of Cash NOI for the three months ended June 30, 2019			$	91,812		$	66,378		$	21,667		$	3,767

⁽¹⁾	See page 47 for our definition of this measure.

- 14 -

NOI

(unaudited and in thousands)

				Six Months Ended June 30, 2020
				Total			New York			San Francisco			Other
Reconciliation of net (loss) income to NOI and Cash NOI:
	Net (loss) income			$	(2,458	)	$	11,670		$	10,074		$	(24,202	)
	Add (subtract) adjustments to arrive at NOI and Cash NOI:
		Depreciation and amortization			117,143			79,946			35,007			2,190
		General and administrative			30,150			-			-			30,150
		Interest and debt expense			72,628			44,536			24,885			3,207
		Income tax expense (benefit)			742			-			(7	)		749
		NOI from unconsolidated joint ventures			23,768			5,624			19,547			(1,403	)
		Loss (income) from unconsolidated joint ventures			10,176			(138	)		8,799			1,515
		Fee income			(12,539	)		-			-			(12,539	)
		Interest and other income, net			(1,256	)		-			(237	)		(1,019	)
		Adjustments related to discontinued operations			690			-			-			690
		Other, net			320			-			-			320
	NOI ⁽¹⁾				239,364			141,638			98,068			(342	)
	Less NOI attributable to noncontrolling interests in:
		Consolidated joint ventures			(31,424	)		(430	)		(30,994	)		-
		Consolidated real estate fund			1,440			-			-			1,440
	PGRE's share of NOI six months ended June 30, 2020			$	209,380		$	141,208		$	67,074		$	1,098
	PGRE's share of NOI six months ended June 30, 2019			$	208,081		$	152,773		$	47,955		$	7,353

	NOI			$	239,364		$	141,638		$	98,068		$	(342	)
	Add (subtract) adjustments to arrive at Cash NOI:
		Straight-line rent adjustments (including our share
			of unconsolidated joint ventures)		(21,841	)		(12,178	)		(9,716	)		53
		Amortization of above and below-market leases, net (including
			our share of unconsolidated joint ventures)		(4,533	)		776			(5,309	)		-
		Adjustments related to discontinued operations			233			-			-			233
	Cash NOI⁽¹⁾				213,223			130,236			83,043			(56	)
	Less Cash NOI attributable to noncontrolling interests in:
		Consolidated joint ventures			(26,918	)		(504	)		(26,414	)		-
		Consolidated real estate fund			1,440			-			-			1,440
	PGRE's share of Cash NOI for the six months ended June 30, 2020			$	187,745		$	129,732		$	56,629		$	1,384
	PGRE's share of Cash NOI for the six months ended June 30, 2019			$	184,881		$	135,179		$	42,093		$	7,609

⁽¹⁾	See page 47 for our definition of this measure.

- 15 -


		SAME STORE RESULTS

(unaudited and in thousands)

SAME STORE CASH NOI ⁽¹⁾			Three Months Ended June 30, 2020
			Total			New York			San Francisco			Other
	PGRE's share of Cash NOI for the three months ended June 30, 2020		$	89,216		$	60,262		$	28,396		$	558
		Acquisitions ⁽²⁾		(6,754	)		-			(6,754	)		-
		Dispositions / Discontinued Operations		(2,261	)		-			-			(2,261	)	⁽³⁾
		Reserves for uncollectible accounts receivable ⁽⁴⁾		1,940			1,152			788			-
		Lease termination income and other, net		1,626			(77	)		-			1,703
	PGRE's share of Same Store Cash NOI for the three months ended June 30, 2020		$	83,767		$	61,337		$	22,430		$	-

		Three Months Ended June 30, 2019
		Total			New York				San Francisco			Other
PGRE's share of Cash NOI for the three months ended June 30, 2019		$	91,812		$	66,378			$	21,667		$	3,767
	Acquisitions		-			-				-			-
	Dispositions / Discontinued Operations		(5,310	)		(806	)	⁽⁵⁾		-			(4,504	)	⁽³⁾
	Reserves for uncollectible accounts receivable ⁽⁴⁾		91			114				(23	)		-
	Lease termination income and other, net		737			-				-			737
PGRE's share of Same Store Cash NOI for the three months ended June 30, 2019		$	87,330		$	65,686			$	21,644		$	-

	(Decrease) increase in PGRE's share of Same Store Cash NOI	$	(3,563	)		$	(4,349	)		$	786			$	-
	% (Decrease) increase		(4.1	%)			(6.6	%)			3.6	%

⁽¹⁾	See page 47 for our definition of this measure.

⁽²⁾	Represents our share of Same Store Cash NOI attributable to acquired properties (Market Center and 55 Second Street in San Francisco) for the months in which they were not owned by us in both reporting periods.

⁽³⁾	Represents Cash NOI from discontinued operations (1899 Pennsylvania Avenue in 2020 and 1899 Pennsylvania Avenue and Liberty Place in 2019).

⁽⁴⁾

Represents impairments of receivables arising from operating leases that have been consistently excluded from our same store results in prior periods as noted in our definition of these terms. In prior periods, adjustments for these items have been relatively small and as such, were included within “other”.

⁽⁵⁾	Represents Cash NOI attributable to 10.0% sale of 1633 Broadway for the months in which it was not owned by us in both reporting periods.

- 16 -


		SAME STORE RESULTS

(unaudited and in thousands)

SAME STORE NOI ⁽¹⁾			Three Months Ended June 30, 2020
			Total			New York			San Francisco			Other
	PGRE's share of NOI for the three months ended June 30, 2020		$	98,823		$	65,716		$	32,635		$	472
		Acquisitions ⁽²⁾		(8,425	)		-			(8,425	)		-
		Dispositions / Discontinued Operations		(2,147	)		-			-			(2,147	)	⁽³⁾
		Non-cash write-offs (primarily straight-line rent receivables) ⁽⁴⁾		7,685			4,993			2,692			-
		Reserves for uncollectible accounts receivable ⁽⁴⁾		1,940			1,152			788			-
		Lease termination income and other, net		1,598			(77	)		-			1,675
	PGRE's share of Same Store NOI for the three months ended June 30, 2020		$	99,474		$	71,784		$	27,690		$	-

		Three Months Ended June 30, 2019
		Total			New York				San Francisco			Other
PGRE's share of NOI for the three months ended June 30, 2019		$	103,138		$	75,123			$	24,326		$	3,689
	Acquisitions		-			-				-			-
	Dispositions / Discontinued Operations		(5,339	)		(935	)	⁽⁵⁾		-			(4,404	)	⁽³⁾
	Reserves for uncollectible accounts receivable ⁽⁴⁾		91			114				(23	)		-
	Lease termination income and other, net		715			-				-			715
PGRE's share of Same Store NOI for the three months ended June 30, 2019		$	98,605		$	74,302			$	24,303		$	-

	Increase (decrease) in PGRE's share of Same Store NOI	$	869			$	(2,518	)		$	3,387			$	-
	% Increase (decrease)		0.9	%			(3.4	%)			13.9	%

⁽¹⁾	See page 47 for our definition of this measure.

⁽²⁾	Represents our share of Same Store NOI attributable to acquired properties (Market Center and 55 Second Street in San Francisco) for the months in which they were not owned by us in both reporting periods.

⁽³⁾	Represents NOI from discontinued operations (1899 Pennsylvania Avenue in 2020 and 1899 Pennsylvania Avenue and Liberty Place in 2019).

⁽⁴⁾

⁽⁵⁾	Represents NOI attributable to 10.0% sale of 1633 Broadway for the months in which it was not owned by us in both reporting periods.

- 17 -

SAME STORE RESULTS

(unaudited and in thousands)

SAME STORE CASH NOI ⁽¹⁾			Six Months Ended June 30, 2020
			Total			New York			San Francisco			Other
	PGRE's share of Cash NOI for the six months ended June 30, 2020		$	187,745		$	129,732		$	56,629		$	1,384
		Acquisitions ⁽²⁾		(13,560	)		-			(13,560	)		-
		Dispositions / Discontinued Operations		(4,591	)		-			-			(4,591	)	⁽³⁾
		Reserves for uncollectible accounts receivable ⁽⁴⁾		1,940			1,152			788			-
		Lease termination income and other, net		3,047			(153	)		(7	)		3,207
	PGRE's share of Same Store Cash NOI for the six months ended June 30, 2020		$	174,581		$	130,731		$	43,850		$	-

		Six Months Ended June 30, 2019
		Total			New York				San Francisco			Other
PGRE's share of Cash NOI for the six months ended June 30, 2019		$	184,881		$	135,179			$	42,093		$	7,609
	Acquisitions		-			-				-			-
	Dispositions / Discontinued Operations		(9,904	)		(806	)	⁽⁵⁾		-			(9,098	)	⁽³⁾
	Reserves for uncollectible accounts receivable ⁽⁴⁾		276			299				(23	)		-
	Lease termination income and other, net		(857	)		(2,346	)			-			1,489
PGRE's share of Same Store Cash NOI for the six months ended June 30, 2019		$	174,396		$	132,326			$	42,070		$	-

	Increase (decrease) in PGRE's share of Same Store Cash NOI	$	185			$	(1,595	)		$	1,780			$	-
	% Increase (decrease)		0.1	%			(1.2	%)			4.2	%

⁽¹⁾	See page 47 for our definition of this measure.

⁽²⁾	Represents our share of Same Store Cash NOI attributable to acquired properties (Market Center, 55 Second Street and 111 Sutter Street in San Francisco) for the months in which they were not owned by us in both reporting periods.

⁽³⁾	Represents Cash NOI from discontinued operations (1899 Pennsylvania Avenue in 2020 and 1899 Pennsylvania Avenue and Liberty Place in 2019).

⁽⁴⁾

⁽⁵⁾	Represents Cash NOI attributable to 10.0% sale of 1633 Broadway for the months in which it was not owned by us in both reporting periods.

- 18 -

SAME STORE RESULTS

(unaudited and in thousands)

SAME STORE NOI ⁽¹⁾			Six Months Ended June 30, 2020
			Total			New York			San Francisco			Other
	PGRE's share of NOI for the six months ended June 30, 2020		$	209,380		$	141,208		$	67,074		$	1,098
		Acquisitions ⁽²⁾		(17,717	)		-			(17,717	)		-
		Dispositions / Discontinued Operations		(4,358	)		-			-			(4,358	)	⁽³⁾
		Non-cash write-offs (primarily straight-line rent receivables) ⁽⁴⁾		7,685			4,993			2,692
		Reserves for uncollectible accounts receivable ⁽⁴⁾		1,940			1,152			788			-
		Lease termination income and other, net		3,100			(153	)		(7	)		3,260
	PGRE's share of Same Store NOI for the six months ended June 30, 2020		$	200,030		$	147,200		$	52,830		$	-

		Six Months Ended June 30, 2019
		Total			New York				San Francisco			Other
PGRE's share of NOI for the six months ended June 30, 2019		$	208,081		$	152,773			$	47,955		$	7,353
	Acquisitions		-			-				-			-
	Dispositions / Discontinued Operations		(9,822	)		(935	)	⁽⁵⁾		-			(8,887	)	⁽³⁾
	Reserves for uncollectible accounts receivable ⁽⁴⁾		276			299				(23	)		-
	Lease termination income and other, net		(812	)		(2,346	)			-			1,534
PGRE's share of Same Store NOI for the six months ended June 30, 2019		$	197,723		$	149,791			$	47,932		$	-

	Increase (decrease) in PGRE's share of Same Store NOI	$	2,307			$	(2,591	)		$	4,898			$	-
	% Increase (decrease)		1.2	%			(1.7	%)			10.2	%

⁽¹⁾	See page 47 for our definition of this measure.

⁽²⁾	Represents our share of Same Store NOI attributable to acquired properties (Market Center, 55 Second Street and 111 Sutter Street in San Francisco) for the months in which they were not owned by us in both reporting periods.

⁽³⁾	Represents NOI from discontinued operations (1899 Pennsylvania Avenue in 2020 and 1899 Pennsylvania Avenue and Liberty Place in 2019).

⁽⁴⁾

⁽⁵⁾	Represents NOI attributable to 10.0% sale of 1633 Broadway for the months in which it was not owned by us in both reporting periods.

- 19 -


		CONSOLIDATED JOINT VENTURES AND FUND - BALANCE SHEETS

(unaudited and in thousands)

		As of June 30, 2020
		Consolidated Joint Ventures										Consolidated Fund
		Total Consolidated										Residential
		Joint Ventures		1633 Broadway ⁽¹⁾		One Market Plaza		300 Mission Street		Other ⁽²⁾		Development Fund
PGRE Ownership				90.0%		49.0%		31.1%		24.4%		7.4%
Assets:
	Real estate, net	$	3,490,042	$	1,813,812	$	1,195,267	$	480,963	$	-	$	-
	Cash and cash equivalents		107,138		46,348		43,016		16,880		894		2,339
	Restricted cash		1,383		78		1,305		-		-		-
	Investments in unconsolidated joint ventures		-		-		-		-		-		67,986
	Accounts and other receivables		5,512		2,939		1,045		1,528		-		124
	Deferred rent receivable		178,933		115,306		53,136		10,491		-		-
	Deferred charges, net		56,572		29,569		16,566		10,437		-		-
	Intangible assets, net		85,662		60,666		18,417		6,579		-		-
	Other assets		8,326		1,091		6,460		775		-		15,690
Total Assets		$	3,933,568	$	2,069,809	$	1,335,212	$	527,653	$	894	$	86,139

Liabilities:
	Notes and mortgages payable, net	$	2,449,538	$	1,240,623	$	971,199	$	237,716	$	-	$	-
	Accounts payable and accrued expenses		47,563		14,532		22,879		10,096		56		68
	Intangible liabilities, net		36,297		19,916		15,137		1,244		-		-
	Other liabilities		4,380		69		4,308		3		-		-
Total Liabilities			2,537,778		1,275,140		1,013,523		249,059		56		68

Equity:
	Paramount Group, Inc. equity		959,607		715,318		157,694		85,872		723		6,828
	Noncontrolling interests		436,183		79,351		163,995		192,722		115		79,243
Total Equity			1,395,790		794,669		321,689		278,594		838		86,071

Total Liabilities and Equity		$	3,933,568	$	2,069,809	$	1,335,212	$	527,653	$	894	$	86,139

⁽¹⁾	On May 27, 2020, we sold a 10.0% interest in 1633 Broadway.

⁽²⁾	Represents PGRESS Equity Holdings, LP.

- 20 -

CONSOLIDATED JOINT VENTURES AND FUND - BALANCE SHEETS

(unaudited and in thousands)

		As of December 31, 2019
		Consolidated Joint Ventures								Consolidated Fund
		Total Consolidated								Residential
		Joint Ventures		One Market Plaza		300 Mission Street		Other ⁽¹⁾		Development Fund
PGRE Ownership				49.0%		31.1%		24.4%		7.4%
Assets:
	Real estate, net	$	1,685,391	$	1,203,232	$	482,159	$	-	$	-
	Cash and cash equivalents		64,172		46,601		16,668		903		2,258
	Restricted cash		3,398		3,398		-		-		-
	Investments in unconsolidated joint ventures		-		-		-		-		69,535
	Accounts and other receivables		2,015		1,085		930		-		125
	Deferred rent receivable		57,338		46,901		10,437		-		-
	Deferred charges, net		24,030		13,330		10,700		-		-
	Intangible assets, net		29,872		21,943		7,929		-		-
	Other assets		5,386		4,937		449		-		15,746
Total Assets		$	1,871,602	$	1,341,427	$	529,272	$	903	$	87,664

Liabilities:
	Notes and mortgages payable, net	$	1,205,324	$	970,681	$	234,643	$	-	$	-
	Accounts payable and accrued expenses		35,191		26,165		8,971		55		61
	Intangible liabilities, net		19,841		18,405		1,436		-		-
	Other liabilities		4,273		4,270		3		-		8,774
Total Liabilities			1,264,629		1,019,521		245,053		55		8,835

Equity:
	Paramount Group, Inc. equity		246,195		157,801		87,669		725		6,433
	Noncontrolling interests		360,778		164,105		196,550		123		72,396
Total Equity			606,973		321,906		284,219		848		78,829

Total Liabilities and Equity		$	1,871,602	$	1,341,427	$	529,272	$	903	$	87,664

⁽¹⁾	Represents PGRESS Equity Holdings, LP.

- 21 -


		CONSOLIDATED JOINT VENTURES AND FUND – OPERATING RESULTS

(unaudited and in thousands)

		Three Months Ended June 30, 2020
		Consolidated Joint Ventures															Consolidated Fund
		Total Consolidated															Residential
		Joint Ventures			1633 Broadway ⁽¹⁾			One Market Plaza			300 Mission Street			Other ⁽²⁾			Development Fund
Total revenues		$	55,553		$	13,108		$	37,253		$	5,192		$	-		$	-
Total operating expenses			19,579			7,379			9,496			2,704			-			3
Net operating income (loss) ⁽³⁾			35,974			5,729			27,757			2,488			-			(3	)
Depreciation and amortization			(19,387	)		(5,490	)		(10,149	)		(3,748	)		-			-
Interest and other income (loss), net			40			-			52			(2	)		(10	)		110
Interest and debt expense			(16,053	)		(3,730	)		(10,193	)		(2,130	)		-			-
Loss from unconsolidated joint ventures			-			-			-			-			-			(1,549	)
Net income (loss)		$	574		$	(3,491	)	$	7,467		$	(3,392	)	$	(10	)	$	(1,442	)

PGRE's share
Ownership		Total			90.0% ⁽¹⁾			49.0%			31.1%			24.4%			7.4%
	Net (loss) income	$	(571	)	$	(3,142	)	$	3,655		$	(1,082	)	$	(2	)	$	(207	)
	Add: Management fee income		740			143			171			426			-			-
	PGRE's share of net income (loss)		169			(2,999	)		3,826			(656	)		(2	)		(207	)
	Add: Real estate depreciation and amortization		11,081			4,941			4,973			1,167			-			-
	FFO/Core FFO ⁽³⁾	$	11,250		$	1,942		$	8,799		$	511		$	(2	)	$	(207	)

Noncontrolling interests' share
Ownership		Total			10.0% ⁽¹⁾			51.0%			68.9%			75.6%			92.6%
	Net income (loss)	$	1,145		$	(349	)	$	3,812		$	(2,310	)	$	(8	)	$	(1,235	)
	Less: Management fee expense		(740	)		(143	)		(171	)		(426	)		-			-
	Net income (loss) attributable to noncontrolling interests		405			(492	)		3,641			(2,736	)		(8	)		(1,235	)
	Add: Real estate depreciation and amortization		8,306			549			5,176			2,581			-			-
	FFO/Core FFO ⁽³⁾	$	8,711		$	57		$	8,817		$	(155	)	$	(8	)	$	(1,235	)

(1)	Represents the results of operations from the date of disposition through June 30, 2020.

(2)	Represents PGRESS Equity Holdings, LP.

(3)	See page 47 for our definition of these measures.

- 22 -

CONSOLIDATED JOINT VENTURES AND FUND – OPERATING RESULTS

(unaudited and in thousands)

		Three Months Ended June 30, 2019
		Consolidated Joint Ventures												Consolidated Fund
		Total Consolidated												Residential
		Joint Ventures			One Market Plaza			300 Mission Street			Other ⁽¹⁾			Development Fund
Total revenues		$	46,213		$	34,154		$	12,059		$	-		$	-
Total operating expenses			13,188			9,504			3,684			-			-
Net operating income ⁽²⁾			33,025			24,650			8,375			-			-
Depreciation and amortization			(15,558	)		(10,349	)		(5,209	)		-			-
Interest and other income (loss), net			168			187			38			(57	)		(1	)
Interest and debt expense			(12,273	)		(10,193	)		(2,080	)		-			-
Income from unconsolidated joint ventures			-			-			-			-			8
Net income (loss) before income taxes			5,362			4,295			1,124			(57	)		7
Income tax expense			(13	)		-			(13	)		-			(1	)
Net income (loss)		$	5,349		$	4,295		$	1,111		$	(57	)	$	6

PGRE's share
Ownership		Total			49.0%			31.1%			24.4%			7.4%
	Net income (loss)	$	2,413		$	2,102		$	325		$	(14	)	$	(47	)
	Add: Management fee income		528			152			376			-			-
	PGRE's share of net income (loss)		2,941			2,254			701			(14	)		(47	)
	Add: Real estate depreciation and amortization		6,689			5,071			1,618			-			-
	FFO/Core FFO ⁽²⁾	$	9,630		$	7,325		$	2,319		$	(14	)	$	(47	)

Noncontrolling interests' share
Ownership		Total			51.0%			68.9%			75.6%			92.6%
	Net income (loss)	$	2,936		$	2,193		$	786		$	(43	)	$	53
	Less: Management fee expense		(528	)		(152	)		(376	)		-			-
	Net income (loss) attributable to noncontrolling interests		2,408			2,041			410			(43	)		53
	Add: Real estate depreciation and amortization		8,869			5,278			3,591			-			-
	FFO/Core FFO ⁽²⁾	$	11,277		$	7,319		$	4,001		$	(43	)	$	53

(1)	Represents PGRESS Equity Holdings, LP.

(2)	See page 47 for our definition of these measures.

- 23 -

CONSOLIDATED JOINT VENTURES AND FUND – OPERATING RESULTS

(unaudited and in thousands)

		Six Months Ended June 30, 2020
		Consolidated Joint Ventures															Consolidated Fund
		Total Consolidated															Residential
		Joint Ventures			1633 Broadway ⁽¹⁾			One Market Plaza			300 Mission Street			Other ⁽²⁾			Development Fund
Total revenues		$	98,605		$	13,108		$	72,745		$	12,752		$	-		$	-
Total operating expenses			32,259			7,379			18,969			5,911			-			5
Net operating income (loss) ⁽³⁾			66,346			5,729			53,776			6,841			-			(5	)
Depreciation and amortization			(32,943	)		(5,490	)		(20,684	)		(6,769	)		-			-
Interest and other income (loss), net			227			-			204			33			(10	)		235
Interest and debt expense			(28,615	)		(3,730	)		(20,387	)		(4,498	)		-			(141	)
Loss from unconsolidated joint ventures			-			-			-			-			-			(1,550	)
Net income (loss) before income taxes			5,015			(3,491	)		12,909			(4,393	)		(10	)		(1,461	)
Income tax benefit (expense)			10			-			(1	)		11			-			(2	)
Net income (loss)		$	5,025		$	(3,491	)	$	12,908		$	(4,382	)	$	(10	)	$	(1,463	)

PGRE's share
Ownership		Total			90.0% ⁽¹⁾			49.0%			31.1%			24.4%			7.4%
	Net income (loss)	$	1,764		$	(3,142	)	$	6,321		$	(1,413	)	$	(2	)	$	(251	)
	Add: Management fee income		1,342			143			348			851			-			-
	PGRE's share of net income (loss)		3,106			(2,999	)		6,669			(562	)		(2	)		(251	)
	Add: Real estate depreciation and amortization		17,182			4,941			10,135			2,106			-			-
	FFO/Core FFO ⁽³⁾	$	20,288		$	1,942		$	16,804		$	1,544		$	(2	)	$	(251	)

Noncontrolling interests' share
Ownership		Total			10.0% ⁽¹⁾			51.0%			68.9%			75.6%			92.6%
	Net income (loss)	$	3,261		$	(349	)	$	6,587		$	(2,969	)	$	(8	)	$	(1,212	)
	Less: Management fee expense		(1,342	)		(143	)		(348	)		(851	)		-			-
	Net income (loss) attributable to noncontrolling interests		1,919			(492	)		6,239			(3,820	)		(8	)		(1,212	)
	Add: Real estate depreciation and amortization		15,761			549			10,549			4,663			-			-
	FFO/Core FFO ⁽³⁾	$	17,680		$	57		$	16,788		$	843		$	(8	)	$	(1,212	)

(1)	Represents the results of operations from the date of disposition through June 30, 2020.

(2)	Represents PGRESS Equity Holdings, LP.

(3)	See page 47 for our definition of these measures.

- 24 -

CONSOLIDATED JOINT VENTURES AND FUND – OPERATING RESULTS

(unaudited and in thousands)

		Six Months Ended June 30, 2019
		Consolidated Joint Ventures											Consolidated Fund
		Total Consolidated											Residential
		Joint Ventures			One Market Plaza			300 Mission Street			Other ⁽¹⁾		Development Fund
Total revenues		$	91,870		$	68,033		$	23,837		$	-	$	-
Total operating expenses			25,627			18,517			7,110			-		18
Net operating income (loss) ⁽²⁾			66,243			49,516			16,727			-		(18	)
Depreciation and amortization			(31,319	)		(20,990	)		(10,329	)		-		-
Interest and other income, net			756			268			91			397		88
Interest and debt expense			(24,439	)		(20,278	)		(4,161	)		-		-
Loss from unconsolidated joint ventures			-			-			-			-		(7	)
Net income before income taxes			11,241			8,516			2,328			397		63
Income tax expense			(19	)		(3	)		(16	)		-		(5	)
Net income		$	11,222		$	8,513		$	2,312		$	397	$	58

PGRE's share
Ownership		Total			49.0%			31.1%			24.4%		7.4%
	Net income (loss)	$	4,947		$	4,169		$	681		$	97	$	(89	)
	Add: Management fee income		1,073			341			732			-		-
	PGRE's share of net income (loss)		6,020			4,510			1,413			97		(89	)
	Add: Real estate depreciation and amortization		13,496			10,285			3,211			-		-
	FFO/Core FFO ⁽²⁾	$	19,516		$	14,795		$	4,624		$	97	$	(89	)

Noncontrolling interests' share
Ownership		Total			51.0%			68.9%			75.6%		92.6%
	Net income	$	6,275		$	4,344		$	1,631		$	300	$	147
	Less: Management fee expense		(1,073	)		(341	)		(732	)		-		-
	Net income attributable to noncontrolling interests		5,202			4,003			899			300		147
	Add: Real estate depreciation and amortization		17,823			10,705			7,118			-		-
	FFO/Core FFO ⁽²⁾	$	23,025		$	14,708		$	8,017		$	300	$	147

(1)	Represents PGRESS Equity Holdings, LP.

(2)	See page 47 for our definition of these measures.

- 25 -


		UNCONSOLIDATED JOINT VENTURES - BALANCE SHEETS

(unaudited and in thousands)

		As of June 30, 2020
				712 Fifth			Market		55 Second		111 Sutter
		Total		Avenue			Center		Street		Street		Other ⁽¹⁾

PGRE Ownership				50.0%			67.0%		44.1%		49.0%		Various
Assets:
	Real estate, net	$	2,605,205	$	207,164		$	663,516	$	382,351	$	217,033	$	1,135,141
	Cash and cash equivalents		87,429		31,006			19,682		10,849		1,859		24,033
	Restricted cash		11,871		2,226			-		-		3,477		6,168
	Accounts and other receivables		2,683		167			967		514		206		829
	Deferred rent receivable		21,448		14,390			2,610		1,585		1,969		894
	Deferred charges, net		10,086		7,332			749		512		1,493		-
	Intangible assets, net		140,312		-			50,149		27,346		8,305		54,512
	Other assets		4,377		330			853		155		276		2,763
Total Assets		$	2,883,411	$	262,615		$	738,526	$	423,312	$	234,618	$	1,224,340

Liabilities:
	Notes and mortgages payable, net	$	1,706,229	$	297,159		$	397,855	$	186,512	$	145,118	$	679,585
	Accounts payable and accrued expenses		65,972		6,964			11,967		6,978		4,931		35,132
	Intangible liabilities, net		31,522		-			10,237		17,518		3,767		-
	Other liabilities		25,799		403			23,939		6		359		1,092
Total Liabilities			1,829,522		304,526			443,998		211,014		154,175		715,809


Total Equity			1,053,889		(41,911	)		294,528		212,298		80,443		508,531

Total Liabilities and Equity		$	2,883,411	$	262,615		$	738,526	$	423,312	$	234,618	$	1,224,340

⁽¹⁾	Represents 60 Wall, Oder-Center, Germany and One Steuart Lane.

- 26 -

UNCONSOLIDATED JOINT VENTURES - BALANCE SHEETS

(unaudited and in thousands)

		As of December 31, 2019
				712 Fifth			Market		55 Second		111 Sutter
		Total		Avenue			Center		Street		Street		Other ⁽¹⁾

PGRE Ownership				50.0%			67.0%		44.1%		49.0%		Various
Assets:
	Real estate, net	$	2,581,738	$	206,913		$	671,276	$	385,614	$	216,936	$	1,100,999
	Cash and cash equivalents		69,286		31,216			9,934		7,254		1,866		19,016
	Restricted cash		5,785		2,224			-		-		3,531		30
	Accounts and other receivables		3,036		1,611			684		280		461		-
	Deferred rent receivable		18,296		14,711			416		917		1,127		1,125
	Deferred charges, net		10,074		7,703			250		561		1,560		-
	Intangible assets, net		172,041		-			61,061		30,996		11,090		68,894
	Other assets		4,812		158			1,632		189		81		2,752
Total Assets		$	2,865,068	$	264,536		$	745,253	$	425,811	$	236,652	$	1,192,816

Liabilities:
	Notes and mortgages payable, net	$	1,648,403	$	296,953		$	397,398	$	186,433	$	142,783	$	624,836
	Accounts payable and accrued expenses		64,254		6,607			5,875		4,778		4,482		42,512
	Intangible liabilities, net		38,377		-			14,228		19,668		4,481		-
	Other liabilities		1,505		271			-		4		174		1,056
Total Liabilities			1,752,539		303,831			417,501		210,883		151,920		668,404


Total Equity			1,112,529		(39,295	)		327,752		214,928		84,732		524,412

Total Liabilities and Equity		$	2,865,068	$	264,536		$	745,253	$	425,811	$	236,652	$	1,192,816

⁽¹⁾	Represents 60 Wall, Oder-Center, Germany and One Steuart Lane.

- 27 -


		UNCONSOLIDATED JOINT VENTURES - OPERATING RESULTS

(unaudited and in thousands)

		Three Months Ended June 30, 2020
					712 Fifth			Market			55 Second			111 Sutter
		Total			Avenue			Center			Street			Street			Other ⁽¹⁾
Total revenues		$	59,913		$	10,460		$	14,860		$	8,284		$	4,163		$	22,146
Total operating expenses			29,642			6,483			6,345			3,091			1,775			11,948
Net operating income ⁽²⁾			30,271			3,977			8,515			5,193			2,388			10,198
Depreciation and amortization			(29,099	)		(2,691	)		(9,714	)		(4,822	)		(2,748	)		(9,124	)
Interest and other (loss) income, net			(29	)		5			(16	)		(9	)		(7	)		(2	)
Interest and debt expense			(14,305	)		(2,674	)		(3,361	)		(1,856	)		(1,509	)		(4,905	)
Net loss before income taxes			(13,162	)		(1,383	)		(4,576	)		(1,494	)		(1,876	)		(3,833	)
Income tax expense			(5	)		-			-			(5	)		-			-
Net loss		$	(13,167	)	$	(1,383	)	$	(4,576	)	$	(1,499	)	$	(1,876	)	$	(3,833	)

PGRE's share
Ownership		Total			50.0%			67.0%			44.1%			49.0%			Various
	Net loss	$	(6,832	)	$	(691	)	$	(3,070	)	$	(657	)	$	(919	)	$	(1,495	)
	Less: Step-up basis adjustment		(43	)		-			-			(5	)		-			(38	)
	Add: Distributions received from 712 Fifth Avenue in excess of earnings		920			920			-			-			-			-
	PGRE's share of net (loss) income		(5,955	)		229			(3,070	)		(662	)		(919	)		(1,533	)
	Add: Real estate depreciation and amortization		11,830			1,345			6,509			2,131			1,346			499
	FFO ⁽²⁾		5,875			1,574			3,439			1,469			427			(1,034	)
	Less: Distributions received from 712 Fifth Avenue in excess of earnings		(920	)		(920	)		-			-			-			-
	Core FFO⁽²⁾	$	4,955		$	654		$	3,439		$	1,469		$	427		$	(1,034	)

Joint Venture Partners' share
Ownership		Total			50.0%			33.0%			55.9%			51.0%			Various
	Net loss	$	(6,335	)	$	(692	)	$	(1,506	)	$	(842	)	$	(957	)	$	(2,338	)
	Add: Real estate depreciation and amortization		17,312			1,346			3,205			2,696			1,402			8,663
	FFO/Core FFO ⁽²⁾	$	10,977		$	654		$	1,699		$	1,854		$	445		$	6,325

⁽¹⁾	Represents 60 Wall, Oder-Center, Germany and One Steuart Lane.

⁽²⁾	See page 47 for our definition of these measures.

- 28 -

UNCONSOLIDATED JOINT VENTURES - OPERATING RESULTS

(unaudited and in thousands)

		Three Months Ended June 30, 2019
					712 Fifth			111 Sutter
		Total			Avenue			Street			Other ⁽¹⁾
Total revenues		$	36,848		$	10,886		$	4,119		$	21,843
Total operating expenses			15,274			6,510			1,645			7,119
Net operating income ⁽²⁾			21,574			4,376			2,474			14,724
Depreciation and amortization			(15,082	)		(2,707	)		(3,244	)		(9,131	)
Interest and other income, net			201			175			-			26
Interest and debt expense			(12,323	)		(2,673	)		(1,780	)		(7,870	)
Net loss			(5,630	)		(829	)		(2,550	)		(2,251	)

PGRE's share
Ownership		Total			50.0%			49.0%			Various
	Net loss	$	(1,748	)	$	(414	)	$	(1,249	)	$	(85	)
	Less: Step-up basis adjustment		(39	)		-			-			(39	)
	Add: Distributions received from 712 Fifth Avenue in excess of earnings		1,331			1,331			-			-
	PGRE's share of net (loss) income		(456	)		917			(1,249	)		(124	)
	Less: Noncontrolling interests		(7	)		-			-			(7	)
	Add: Real estate depreciation and amortization		3,444			1,354			1,589			501
	FFO ⁽²⁾		2,981			2,271			340			370
	Less: Distributions received from 712 Fifth Avenue in excess of earnings		(1,331	)		(1,331	)		-			-
	Core FFO⁽²⁾	$	1,650		$	940		$	340		$	370

Joint Venture Partners' share
Ownership		Total			50.0%			51.0%			Various
	Net loss	$	(3,882	)	$	(415	)	$	(1,301	)	$	(2,166	)
	Add: Real estate depreciation and amortization		11,666			1,353			1,655			8,658
	FFO/Core FFO ⁽²⁾	$	7,784		$	938		$	354		$	6,492

⁽¹⁾	Represents 60 Wall, Oder-Center, Germany and One Steuart Lane.

⁽²⁾	See page 47 for our definition of these measures.

- 29 -

UNCONSOLIDATED JOINT VENTURES - OPERATING RESULTS

(unaudited and in thousands)

		Six Months Ended June 30, 2020
					712 Fifth			Market			55 Second			111 Sutter
		Total			Avenue			Center			Street			Street			Other ⁽¹⁾
Total revenues		$	123,107		$	21,368		$	31,208		$	16,813		$	9,455		$	44,263
Total operating expenses			55,582			12,894			13,020			6,482			3,681			19,505
Net operating income ⁽²⁾			67,525			8,474			18,188			10,331			5,774			24,758
Depreciation and amortization			(59,281	)		(5,356	)		(20,286	)		(9,584	)		(5,803	)		(18,252	)
Interest and other income (loss), net			48			71			(24	)		(9	)		(10	)		20
Interest and debt expense			(30,214	)		(5,347	)		(6,710	)		(3,713	)		(3,076	)		(11,368	)
Net loss before income taxes			(21,922	)		(2,158	)		(8,832	)		(2,975	)		(3,115	)		(4,842	)
Income tax expense			(44	)		-			(4	)		(20	)		(6	)		(14	)
Net loss		$	(21,966	)	$	(2,158	)	$	(8,836	)	$	(2,995	)	$	(3,121	)	$	(4,856	)

PGRE's share
Ownership		Total			50.0%			67.0%			44.1%			49.0%			Various
	Net loss	$	(11,403	)	$	(1,079	)	$	(5,924	)	$	(1,341	)	$	(1,529	)	$	(1,530	)
	Less: Step-up basis adjustment		(81	)		-			-			(5	)		-			(76	)
	Add: Distributions received from 712 Fifth Avenue in excess of earnings		1,308			1,308			-			-			-			-
	PGRE's share of net (loss) income		(10,176	)		229			(5,924	)		(1,346	)		(1,529	)		(1,606	)
	Add: Real estate depreciation and amortization		24,343			2,678			13,592			4,231			2,843			999
	FFO ⁽²⁾		14,167			2,907			7,668			2,885			1,314			(607	)
	Less: Distributions received from 712 Fifth Avenue in excess of earnings		(1,308	)		(1,308	)		-			-			-			-
	Core FFO⁽²⁾	$	12,859		$	1,599		$	7,668		$	2,885		$	1,314		$	(607	)

Joint Venture Partners' share
Ownership		Total			50.0%			33.0%			55.9%			51.0%			Various
	Net loss	$	(10,563	)	$	(1,079	)	$	(2,912	)	$	(1,654	)	$	(1,592	)	$	(3,326	)
	Add: Real estate depreciation and amortization		35,019			2,678			6,694			5,358			2,960			17,329
	FFO/Core FFO ⁽²⁾	$	24,456		$	1,599		$	3,782		$	3,704		$	1,368		$	14,003

⁽¹⁾	Represents 60 Wall, Oder-Center, Germany and One Steuart Lane.

⁽²⁾	See page 47 for our definition of these measures.

- 30 -

UNCONSOLIDATED JOINT VENTURES - OPERATING RESULTS

(unaudited and in thousands)

		Six Months Ended June 30, 2019
					712 Fifth			111 Sutter
		Total			Avenue			Street			Other ⁽¹⁾
Total revenues		$	75,170		$	25,080		$	6,616		$	43,474
Total operating expenses			29,677			12,781			2,713			14,183
Net operating income ⁽²⁾			45,493			12,299			3,903			29,291
Depreciation and amortization			(29,207	)		(5,537	)		(5,407	)		(18,263	)
Interest and other income, net			299			268			9			22
Interest and debt expense			(23,850	)		(5,319	)		(2,834	)		(15,697	)
Net (loss) income before income taxes			(7,265	)		1,711			(4,329	)		(4,647	)
Income tax expense			(8	)		-			-			(8	)
Net (loss) income		$	(7,273	)	$	1,711		$	(4,329	)	$	(4,655	)

PGRE's share
Ownership		Total			50.0%			49.0%			Various
	Net (loss) income	$	(1,466	)	$	856		$	(2,121	)	$	(201	)
	Less: Step-up basis adjustment		(78	)		-			-			(78	)
	Add: Distributions received from 712 Fifth Avenue in excess of earnings		61			61			-			-
	PGRE's share of net (loss) income		(1,483	)		917			(2,121	)		(279	)
	Less: Noncontrolling interests		6			-			-			6
	Add: Real estate depreciation and amortization		6,420			2,769			2,649			1,002
	FFO ⁽²⁾		4,943			3,686			528			729
	Less: Distributions received from 712 Fifth Avenue in excess of earnings		(61	)		(61	)		-			-
	Core FFO⁽²⁾	$	4,882		$	3,625		$	528		$	729

Joint Venture Partners' share
Ownership		Total			50.0%			51.0%			Various
	Net (loss) income	$	(5,807	)	$	855		$	(2,208	)	$	(4,454	)
	Add: Real estate depreciation and amortization		22,865			2,768			2,758			17,339
	FFO/Core FFO ⁽²⁾	$	17,058		$	3,623		$	550		$	12,885

⁽¹⁾	Represents 60 Wall, Oder-Center, Germany and One Steuart Lane.

⁽²⁾	See page 47 for our definition of these measures.

- 31 -


		CAPITAL STRUCTURE

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

			As of June 30, 2020
Debt:
	Consolidated debt:
		Notes and mortgages payable ⁽¹⁾	$	3,812,716
		$1.0 billion Revolving Credit Facility		200,000
				4,012,716
	Less:
		Noncontrolling interests' share of consolidated debt ⁽²⁾		(786,024	)
	Add:
		PGRE's share of unconsolidated joint venture debt ⁽³⁾		604,469
	PGRE's Share of Total Debt ⁽⁴⁾			3,831,161

		Shares / Units		Share Price as of
Equity:		Outstanding		June 30, 2020
	Common stock		221,763,687	$	7.71		1,709,798
	Operating Partnership units		20,780,392		7.71		160,217
	Total equity		242,544,079		7.71		1,870,015


Total Market Capitalization						$	5,701,176

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

⁽²⁾	Represents noncontrolling interests’ share of 1633 Broadway, One Market Plaza and 300 Mission Street.

⁽³⁾	Represents our share of 712 Fifth Avenue, Market Center, 55 Second Street, 111 Sutter Street, 60 Wall Street and Oder-Center, Germany.

⁽⁴⁾	See page 47 for our definition of this measure.

- 32 -



		DEBT ANALYSIS

(unaudited and in thousands)

		Total Debt						Fixed Rate Debt						Variable Rate Debt
Consolidated Debt:		Amount			Rate			Amount			Rate			Amount			Rate
	1633 Broadway	$	1,250,000			2.99	%	$	1,250,000			2.99	%	$	-			-
	1301 Avenue of the Americas		850,000			2.61	%		500,000			3.05	%		350,000			1.99	%
	31 West 52nd Street		500,000			3.80	%		500,000			3.80	%		-			-
	One Market Plaza		975,000			4.03	%		975,000			4.03	%		-			-
	300 Mission Street		237,716			3.65	%		237,716			3.65	%		-			-
	Revolving Credit Facility		200,000			1.34	%		-			-			200,000			1.34	%
Total consolidated debt			4,012,716			3.22	%		3,462,716			3.45	%		550,000			1.75	%
Noncontrolling interests' share			(786,024	)		3.79	%		(786,024	)		3.79	%		-			-
PGRE's share of consolidated debt		$	3,226,692			3.08	%	$	2,676,692			3.36	%	$	550,000			1.75	%

Unconsolidated Joint Venture Debt:
	712 Fifth Avenue	$	300,000			3.39	%	$	300,000			3.39	%	$	-			-
	Market Center		402,000			3.07	%		402,000			3.07	%		-			-
	55 Second Street		187,500			3.88	%		187,500			3.88	%		-			-
	111 Sutter Street		146,797			3.65	%		-			-			146,797			3.65	%
	60 Wall Street		575,000			2.63	%		-			-			575,000			2.63	%
	Oder-Center, Germany		18,115			4.62	%		18,115			4.62	%		-			-
Total unconsolidated debt			1,629,412			3.14	%		907,615			3.37	%		721,797			2.84	%
Joint venture partners' share			(1,024,943	)		3.03	%		(403,885	)		3.46	%		(621,058	)		2.76	%
PGRE's share of unconsolidated debt		$	604,469			3.31	%	$	503,730			3.30	%	$	100,739			3.36	%

PGRE's share of Total Debt ⁽¹⁾		$	3,831,161			3.12	%	$	3,180,422			3.35	%	$	650,739			2.00	%

Revolving Credit Facility Covenants: ⁽²⁾		Required	Actual			Debt Composition (at PGRE's share):		Amount		%
	Total Debt / Total Assets	Less than 60%		41.4	%	Fixed rate debt:
	Secured Debt / Total Assets	Less than 50%		42.1	%		Consolidated fixed rate debt	$	2,676,692
	Fixed Charge Coverage	Greater than 1.5x	3.37x				Unconsolidated fixed rate debt		503,730
	Unsecured Debt / Unencumbered Assets	Less than 60%		0.0	%		PGRE's share of fixed rate debt		3,180,422		83.0	%
	Unencumbered Interest Coverage	Greater than 1.75x	15.06x			Variable rate debt:
							Consolidated variable rate debt		550,000
							Unconsolidated variable rate debt		100,739
							PGRE's share of variable rate debt		650,739		17.0	%

							PGRE's share of Total Debt ⁽¹⁾	$	3,831,161		100.0	%

⁽¹⁾	See page 47 for our definition of this measure.

⁽²⁾

This section presents ratios as of June 30, 2020 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 considering our compliance with the revolving credit facility.

- 33 -


		DEBT MATURITIES

(unaudited and in thousands)

Consolidated Debt:		2020		2021			2022			2023			2024			Thereafter			Total
	1301 Avenue of the Americas	$	-	$	850,000		$	-		$	-		$	-		$	-		$	850,000
	300 Mission Street		-		-			-			237,716			-			-			237,716
	One Market Plaza		-		-			-			-			975,000			-			975,000
	1633 Broadway		-		-			-			-			-			1,250,000			1,250,000
	31 West 52nd Street		-		-			-			-			-			500,000			500,000
	Revolving Credit Facility		-		-			200,000			-			-			-			200,000
Total consolidated debt			-		850,000			200,000			237,716			975,000			1,750,000			4,012,716
Noncontrolling interests' share			-		-			-			(163,786	)		(497,250	)		(124,988	)		(786,024	)
PGRE's share of consolidated debt		$	-	$	850,000		$	200,000		$	73,930		$	477,750		$	1,625,013		$	3,226,692


Unconsolidated Joint Venture Debt:
	60 Wall Street	$	-	$	-		$	575,000		$	-		$	-		$	-		$	575,000
	Oder-Center, Germany		-		-			18,115			-			-			-			18,115
	111 Sutter Street		-		-			-			146,797			-			-			146,797
	Market Center		-		-			-			-			-			402,000			402,000
	712 Fifth Avenue		-		-			-			-			-			300,000			300,000
	55 Second Street		-		-			-			-			-			187,500			187,500
Total unconsolidated debt			-		-			593,115			146,797			-			889,500			1,629,412
Joint venture partners' share			-		-			(562,586	)		(74,866	)		-			(387,491	)		(1,024,943	)
PGRE's share of unconsolidated debt		$	-	$	-		$	30,529		$	71,931		$	-		$	502,009		$	604,469



PGRE's Share of Total Debt ⁽¹⁾		$	-	$	850,000		$	230,529		$	145,861		$	477,750		$	2,127,021		$	3,831,161

Weighted average rate			-		2.61	%		1.53	%		3.65	%		4.03	%		3.25	%		3.12	%

% of debt maturing			-		22.2	%		6.0	%		3.8	%		12.5	%		55.5	%		100.0	%

⁽¹⁾	See page 47 for our definition of this measure.

- 34 -


		PORTFOLIO SUMMARY

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

		Paramount			Number of		Square		%			%			Annualized Rent ⁽¹⁾
Property	Submarket	Ownership			Buildings		Feet		Leased ⁽¹⁾			Occupied ⁽¹⁾			Amount		Per Square Foot ⁽²⁾

As of June 30, 2020
New York:
1633 Broadway ⁽³⁾	West Side		90.0	%		1		2,499,105		98.4	%		98.4	%	$	182,148	$	76.62
1301 Avenue of the Americas	Sixth Avenue / Rock Center		100.0	%		1		1,765,688		99.0	%		98.1	%		137,743		79.82
1325 Avenue of the Americas	Sixth Avenue / Rock Center		100.0	%		1		810,993		91.8	%		91.8	%		49,688		68.15
31 West 52nd Street	Sixth Avenue / Rock Center		100.0	%		1		763,140		98.3	%		98.3	%		71,626		92.95
900 Third Avenue	East Side		100.0	%		1		591,401		81.8	%		78.7	%		32,838		70.58
712 Fifth Avenue	Madison / Fifth Avenue		50.0	%		1		543,411		75.2	%		72.9	%		45,910		115.89
60 Wall Street	Downtown		5.0	%		1		1,625,483		100.0	%		100.0	%		73,600		45.28	⁽⁴⁾
Subtotal / Weighted average						7		8,599,221		95.6	%		95.0	%		593,553		73.32
PGRE's share						7		6,533,584		95.3	%		94.7	%		482,472		79.07

San Francisco:
One Market Plaza	South Financial District		49.0	%		2		1,591,919		98.2	%		98.2	%		141,329		89.79
Market Center	South Financial District		67.0	%		2		745,518		94.3	%		94.3	%		59,394		84.11
300 Mission Street	South Financial District		31.1	%		1		660,702		99.1	%		81.0	%		42,186		78.99
One Front Street	North Financial District		100.0	%		1		644,174		100.0	%		97.0	%		50,220		80.49
55 Second Street	South Financial District		44.1	%		1		379,621		95.7	%		95.7	%		27,639		76.29
111 Sutter Street	North Financial District		49.0	%		1		276,431		83.3	%		83.2	%		17,913		78.67
Subtotal / Weighted average						8		4,298,365		96.7	%		93.5	%		338,681		84.06
PGRE's share						8		2,432,054		96.9	%		94.6	%		193,351		83.84

Subtotal / Weighted average						15		12,897,586		96.0	%		94.5	%		932,234	$	76.93
PGRE's share						15		8,965,638		95.7	%		94.7	%		675,823	$	80.39

Discontinued Operations
1899 Pennsylvania Avenue ⁽⁵⁾	CBD		100.0	%		1		190,955		90.4	%		90.4	%		15,122		87.03

Total / Weighted average						16		13,088,541		95.9	%		94.5	%		947,356	$	77.07
PGRE's share						16		9,156,593		95.6	%		94.6	%		690,945	$	80.53

⁽¹⁾	See page 47 for our definition of this measure.

⁽²⁾	Represents office and retail space only.

⁽³⁾	On May 27, 2020, we sold a 10.0% interest in 1633 Broadway.

⁽⁴⁾	Represents “triple-net” rent.

⁽⁵⁾	On March 6, 2020, we entered into an agreement to sell 1899 Pennsylvania Avenue, a 191,000 square foot office building located in Washington, D.C. The transaction, which is subject to customary closing conditions, is expected to close in the fourth quarter of 2020.

- 35 -


		SAME STORE LEASED OCCUPANCY

(unaudited)

				As of June 30, 2020						As of March 31, 2020						Change in
	Paramount						Same Store						Same Store			Same Store
Property	Ownership			Leased % ⁽¹⁾			Leased % ⁽¹⁾			Leased % ⁽¹⁾			Leased % ⁽¹⁾			Leased %


New York:
1633 Broadway		90.0	%		98.4	%		98.4	%		98.4	%		98.4	%		-	%
1301 Avenue of the Americas		100.0	%		99.0	%		99.0	%		99.0	%		99.0	%		-	%
1325 Avenue of the Americas		100.0	%		91.8	%		91.8	%		91.8	%		91.8	%		-	%
31 West 52nd Street		100.0	%		98.3	%		98.3	%		98.3	%		98.3	%		-	%
900 Third Avenue		100.0	%		81.8	%		81.8	%		82.4	%		82.4	%		(0.6	%)
712 Fifth Avenue		50.0	%		75.2	%		75.2	%		75.2	%		75.2	%		-	%
60 Wall Street		5.0	%		100.0	%		100.0	%		100.0	%		100.0	%		-	%
Weighted average					95.6	%		95.6	%		95.6	%		95.6	%		-	%
PGRE's share					95.3	%		95.3	%		95.5	%		95.3	%		-	%

San Francisco:
One Market Plaza		49.0	%		98.2	%		98.2	%		98.2	%		98.2	%		-	%
Market Center		67.0	%		94.3	%		94.3	%		95.6	%		95.6	%		(1.3	%)
300 Mission Street		31.1	%		99.1	%		99.1	%		99.1	%		99.1	%		-	%
One Front Street		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		-	%
55 Second Street		44.1	%		95.7	%		95.7	%		95.7	%		95.7	%		-	%
111 Sutter Street		49.0	%		83.3	%		83.3	%		86.3	%		86.3	%		(3.0	%)
Weighted average					96.7	%		96.7	%		97.2	%		97.2	%		(0.5	%)
PGRE's share					96.9	%		96.9	%		97.4	%		97.4	%		(0.5	%)

Weighted average					96.0	%		96.0	%		96.1	%		96.1	%		(0.1	%)
PGRE's share					95.7	%		95.7	%		96.0	%		95.9	%		(0.2	%)

Discontinued Operations
1899 Pennsylvania Avenue		100.0	%		90.4	%		90.4	%		90.4	%		90.4	%		-	%

Weighted average					95.9	%		95.9	%		96.1	%		96.1	%		(0.2	%)
PGRE's share					95.6	%		95.6	%		95.9	%		95.8	%		(0.2	%)

⁽¹⁾	See page 47 for our definition of this measure.

- 36 -

SAME STORE LEASED OCCUPANCY

(unaudited)

				As of June 30, 2020						As of December 31, 2019						Change in
	Paramount						Same Store						Same Store			Same Store
Property	Ownership			Leased % ⁽¹⁾			Leased % ⁽¹⁾			Leased % ⁽¹⁾			Leased % ⁽¹⁾			Leased %


New York:
1633 Broadway		90.0	%		98.4	%		98.4	%		98.4	%		98.4	%		-	%
1301 Avenue of the Americas		100.0	%		99.0	%		99.0	%		99.4	%		99.4	%		(0.4	%)
1325 Avenue of the Americas		100.0	%		91.8	%		91.8	%		91.1	%		91.1	%		0.7	%
31 West 52nd Street		100.0	%		98.3	%		98.3	%		97.5	%		97.5	%		0.8	%
900 Third Avenue		100.0	%		81.8	%		81.8	%		83.4	%		83.4	%		(1.6	%)
712 Fifth Avenue		50.0	%		75.2	%		75.2	%		74.2	%		74.2	%		1.0	%
60 Wall Street		5.0	%		100.0	%		100.0	%		100.0	%		100.0	%		-	%
Weighted average					95.6	%		95.6	%		95.6	%		95.6	%		-	%
PGRE's share					95.3	%		95.3	%		95.5	%		95.3	%		-	%

San Francisco:
One Market Plaza		49.0	%		98.2	%		98.2	%		98.4	%		98.4	%		(0.2	%)
Market Center		67.0	%		94.3	%		94.3	%		95.6	%		95.6	%		(1.3	%)
300 Mission Street		31.1	%		99.1	%		99.1	%		100.0	%		100.0	%		(0.9	%)
One Front Street		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		-	%
55 Second Street		44.1	%		95.7	%		95.7	%		95.7	%		95.7	%		-	%
111 Sutter Street		49.0	%		83.3	%		83.3	%		86.3	%		86.3	%		(3.0	%)
Weighted average					96.7	%		96.7	%		97.4	%		97.4	%		(0.7	%)
PGRE's share					96.9	%		96.9	%		97.5	%		97.5	%		(0.6	%)

Weighted average					96.0	%		96.0	%		96.2	%		96.2	%		(0.2	%)
PGRE's share					95.7	%		95.7	%		96.0	%		95.9	%		(0.2	%)

Discontinued Operations
1899 Pennsylvania Avenue		100.0	%		90.4	%		90.4	%		90.4	%		90.4	%		-	%

Weighted average					95.9	%		95.9	%		96.1	%		96.1	%		(0.2	%)
PGRE's share					95.6	%		95.6	%		95.9	%		95.8	%		(0.2	%)

⁽¹⁾	See page 47 for our definition of this measure.

- 37 -



		TOP TENANTS AND INDUSTRY DIVERSIFICATION

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

									PGRE's Share of
						Total			Total						Annualized Rent ⁽¹⁾				% of
				Lease		Square Feet			Square Feet			% of Total					Per Square		Annualized
Top 10 Tenants:			Property	Expiration		Occupied			Occupied			Square Feet			Amount		Foot		Rent
As of June 30, 2020
	Barclays Capital, Inc.		1301 Avenue of the Americas	Dec-2020			497,418			497,418			5.4	%	$	33,163	$	66.67		4.8	%
	Clifford Chance LLP		31 West 52nd Street	Jun-2024			328,992			328,992			3.6	%		29,173		88.67		4.2	%
	Credit Agricole Corporate &
		Investment Bank	1301 Avenue of the Americas	Feb-2023			312,679			312,679			3.4	%		27,285		87.26		3.9	%
	Norton Rose Fulbright		1301 Avenue of the Americas	Sep-2034	⁽²⁾		320,325	⁽²⁾		320,325	⁽²⁾		3.5	%		27,004		84.30		3.9	%
	First Republic Bank		One Front Street	Jun-2025	⁽³⁾		338,602	⁽³⁾		338,602	⁽³⁾		3.7	%		26,926		79.52		3.9	%
	Allianz Global Investors, LP		1633 Broadway	Jan-2031			320,911			288,823			3.2	%		26,384		91.35		3.8	%
	Morgan Stanley & Company		1633 Broadway	Mar-2032			260,829			234,749			2.6	%		17,976		76.58		2.6	%
	WMG Acquisition Corp.
		(Warner Music Group)	1633 Broadway	Jul-2029			296,344			266,713			2.9	%		17,543		65.77		2.5	%
	Showtime Networks, Inc.		1633 Broadway	Jan-2026			261,196			235,079			2.6	%		15,096		64.22		2.2	%
	Google, Inc.		One Market Plaza	Apr-2025			342,211			167,683			1.8	%		14,321		85.41		2.1	%

		PGRE's Share of
		Square Feet		% of Occupied			Annualized		% of
Industry Diversification:		Occupied		Square Feet			Rent ⁽¹⁾		Annualized Rent
As of June 30, 2020
	Legal Services		1,890,768		21.8	%	$	157,017		22.7	%
	Financial Services - Commercial and Investment Banking		1,847,402		21.3	%		140,551		20.3	%
	Technology and Media		1,760,225		20.3	%		133,720		19.4	%
	Financial Services, all others		1,273,527		14.7	%		114,992		16.6	%
	Insurance		448,236		5.2	%		39,485		5.7	%
	Retail		140,661		1.6	%		14,455		2.1	%
	Travel & Leisure		192,856		2.2	%		13,555		2.0	%
	Real Estate		162,320		1.9	%		13,234		1.9	%
	Consumer Products		128,715		1.5	%		9,264		1.3	%
	Other		813,253		9.5	%		54,672		8.0	%

⁽¹⁾	See page 47 for our definition of this measure.

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

⁽³⁾	76,999 and 10,952 of the square feet leased expire on December 31, 2029 and December 31, 2030, respectively.

- 38 -


		LEASING ACTIVITY ⁽¹⁾

(unaudited)

	Total			New York			San Francisco

Three Months Ended June 30, 2020

Total square feet leased		300,570			51,890			248,680

PGRE's share of total square feet leased:		169,898			51,890			118,008
Initial rent ⁽²⁾	$	93.47		$	82.00		$	98.51
Weighted average lease term (in years)		4.2			5.3			3.8
Tenant improvements and leasing commissions:
Per square foot	$	37.89		$	25.00		$	43.56
Per square foot per annum	$	8.93		$	4.76		$	11.46
Percentage of initial rent		9.6	%		5.8	%		11.6	%
Rent concessions:
Average free rent period (in months)		2.7			3.0			2.5
Average free rent period per annum (in months)		0.6			0.6			0.7

Second generation space: ⁽²⁾
Square feet		159,548			51,890			107,658
Cash basis:
Initial rent ⁽²⁾	$	92.72		$	82.00		$	97.89
Prior escalated rent ⁽²⁾	$	74.67		$	81.78		$	71.25
Percentage increase		24.2	%		0.3	%		37.4	%
GAAP basis:
Straight-line rent ⁽²⁾	$	92.02		$	78.10		$	98.74
Prior straight-line rent ⁽²⁾	$	77.18		$	76.01		$	77.75
Percentage increase		19.2	%		2.7	%		27.0	%

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

⁽²⁾	See page 47 for our definition of this measure.

- 39 -

LEASING ACTIVITY ⁽¹⁾

(unaudited)

	Total			New York			San Francisco

Six Months Ended June 30, 2020

Total square feet leased		507,354			100,762			406,592

PGRE's share of total square feet leased:		295,966			96,494			199,472
Initial rent ⁽²⁾	$	92.67		$	77.95		$	99.79
Weighted average lease term (in years)		4.5			4.7			4.4
Tenant improvements and leasing commissions:
Per square foot	$	35.96		$	28.34		$	39.65
Per square foot per annum	$	8.04		$	6.04		$	9.09
Percentage of initial rent		8.7	%		7.7	%		9.1	%
Rent concessions:
Average free rent period (in months)		2.4			2.1			2.5
Average free rent period per annum (in months)		0.5			0.4			0.6

Second generation space: ⁽²⁾
Square feet		263,856			88,212			175,644
Cash basis:
Initial rent ⁽²⁾	$	91.71		$	75.06		$	100.07
Prior escalated rent ⁽²⁾	$	72.29		$	73.93		$	71.47
Percentage increase		26.9	%		1.5	%		40.0	%
GAAP basis:
Straight-line rent ⁽²⁾	$	91.67		$	72.77		$	101.17
Prior straight-line rent ⁽²⁾	$	72.74		$	69.39		$	74.43
Percentage increase		26.0	%		4.9	%		35.9	%

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

⁽²⁾	See page 47 for our definition of this measure.

- 40 -



		LEASE EXPIRATIONS – TOTAL PORTFOLIO

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

		Total		PGRE's Share of
Year of		Square Feet		Square Feet		Annualized Rent ⁽¹⁾				% of
Lease Expiration ⁽²⁾		of Expiring Leases		of Expiring Leases		Amount		Per Square Foot ⁽³⁾		Annualized Rent

	Month to Month		16,059		11,441	$	982	$	53.82		0.1	%

	3Q 2020		76,766		57,181		4,367		76.44		0.6	%
	4Q 2020		58,252		33,959		2,936		87.35		0.4	%
	Total 2020		135,018		91,140		7,303		80.44		1.0	%

	1Q 2021		743,738		646,429		46,376		72.12		6.6	%
	2Q 2021		195,783		190,261		15,570		81.74		2.2	%
	Remaining 2021		163,348		124,075		7,582		72.81		1.1	%
	Total 2021		1,102,869		960,765		69,528		74.18		9.9	%
	2022		2,231,476		434,503		28,821		80.63		4.1	%
	2023		1,051,235		891,909		72,963		84.25		10.4	%
	2024		809,461		721,630		60,315		83.65		8.6	%
	2025		1,408,530		880,191		71,979		81.77		10.3	%
	2026		1,369,212		977,279		76,365		76.05		10.9	%
	2027		209,946		142,166		12,332		86.72		1.8	%
	2028		255,681		209,154		17,039		81.96		2.4	%
	2029		550,781		501,791		38,403		76.94		5.5	%
	Thereafter		3,411,239		2,934,304		246,081		83.40		35.0	%

⁽¹⁾	See page 47 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.

- 41 -


		LEASE EXPIRATIONS – NEW YORK

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

		Total		PGRE's Share of
Year of		Square Feet		Square Feet		Annualized Rent ⁽¹⁾				% of
Lease Expiration ⁽²⁾		of Expiring Leases		of Expiring Leases		Amount		Per Square Foot ⁽³⁾		Annualized Rent

	Month to Month		4,739		4,231	$	502	$	67.90		0.1	%

	3Q 2020		66,631		50,390		3,788		75.33		0.8	%
	4Q 2020		22,806		12,769		831		65.43		0.2	%
	Total 2020		89,437		63,159		4,619		73.43		1.0	%

	1Q 2021		552,118		542,059		37,217		69.15		7.7	%
	2Q 2021		180,286		180,286		14,717		81.61		3.0	%
	Remaining 2021		81,642		70,515		3,565		68.84		0.7	%
	Total 2021		814,046		792,860		55,499		72.11		11.4	%
	2022		1,799,051		227,931		10,963		71.46		2.3	%
	2023		552,946		524,561		40,978		82.23		8.4	%
	2024		608,942		592,098		49,006		82.88		10.1	%
	2025		296,470		240,805		21,536		89.40		4.4	%
	2026		707,029		646,913		49,995		74.01		10.3	%
	2027		85,378		79,854		6,857		85.87		1.4	%
	2028		147,554		127,134		10,444		82.74		2.1	%
	2029		517,960		485,020		37,111		76.94		7.6	%
	Thereafter		2,596,881		2,441,402		198,498		80.74		40.9	%

⁽¹⁾	See page 47 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.

- 42 -


		LEASE EXPIRATIONS – SAN FRANCISCO

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

		Total		PGRE's Share of
Year of		Square Feet		Square Feet		Annualized Rent ⁽¹⁾				% of
Lease Expiration ⁽²⁾		of Expiring Leases		of Expiring Leases		Amount		Per Square Foot ⁽³⁾		Annualized Rent

	Month to Month		10,245		6,135	$	480	$	37.30		0.2	%

	3Q 2020		10,135		6,791		579		84.67		0.3	%
	4Q 2020		35,446		21,190		2,105		99.72		1.0	%
	Total 2020		45,581		27,981		2,684		96.06		1.3	%

	1Q 2021		187,303		100,053		8,793		87.56		4.4	%
	2Q 2021		15,497		9,975		853		84.10		0.4	%
	Remaining 2021		81,706		53,560		4,017		75.73		2.0	%
	Total 2021		284,506		163,588		13,663		83.50		6.8	%
	2022		428,694		202,841		17,644		86.92		8.8	%
	2023		363,511		232,570		19,657		84.72		9.8	%
	2024		200,519		129,532		11,309		87.19		5.6	%
	2025		1,112,060		639,386		50,443		78.89		25.1	%
	2026		633,937		302,120		24,176		80.24		12.0	%
	2027		124,568		62,312		5,475		87.82		2.7	%
	2028		108,127		82,020		6,595		80.74		3.3	%
	2029		32,821		16,771		1,292		77.03		0.6	%
	Thereafter		813,835		492,379		47,563		96.60		23.8	%

⁽¹⁾	See page 47 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.

- 43 -

LEASE EXPIRATIONS – OTHER ⁽¹⁾

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

		Total		PGRE's Share of
Year of		Square Feet		Square Feet		Annualized Rent ⁽²⁾				% of
Lease Expiration ⁽³⁾		of Expiring Leases		of Expiring Leases		Amount		Per Square Foot ⁽⁴⁾		Annualized Rent

	Month to Month		1,075		1,075	$	-	$	-		-	%

	3Q 2020		-		-		-		-		-	%
	4Q 2020		-		-		-		-		-	%
	Total 2020		-		-		-		-		-	%

	1Q 2021		4,317		4,317		366		84.74		2.4	%
	2Q 2021		-		-		-		-		-	%
	Remaining 2021		-		-		-		-		-	%
	Total 2021		4,317		4,317		366		84.74		2.4	%
	2022		3,731		3,731		214		57.32		1.4	%
	2023		134,778		134,778		12,328		90.11		81.6	%
	2024		-		-		-		-		-	%
	2025		-		-		-		-		-	%
	2026		28,246		28,246		2,194		77.66		14.5	%
	2027		-		-		-		-		-	%
	2028		-		-		-		-		-	%
	2029		-		-		-		-		-	%
	Thereafter		523		523		20		30.00		0.1	%

⁽¹⁾	Represents lease expirations of 1899 Pennsylvania Avenue, which is classified as discontinued operations.

⁽²⁾	See page 47 for our definition of this measure.

⁽³⁾	Leases that expire on the last day of the quarter are treated as occupied and are reflected as expiring space in the following quarter.

⁽⁴⁾	Represents office and retail space only.

- 44 -

CASH BASIS CAPITAL EXPENDITURES

(unaudited and in thousands)

	Three Months Ended June 30, 2020
	Total		New York		San Francisco		Other
Capital Expenditures: ⁽¹⁾
Expenditures to maintain assets	$	3,861	$	2,058	$	1,612	$	191
Second generation tenant improvements		7,281		3,832		3,449		-
Second generation leasing commissions		3,481		974		2,507		-
First generation leasing costs and capital expenditures		-		-		-		-
Total Capital Expenditures	$	14,623	$	6,864	$	7,568	$	191

Redevelopment Expenditures: ⁽¹⁾
One Market Plaza	$	1,303	$	-	$	1,303	$	-
Other		3,236		1,524		1,712		-
Total Redevelopment Expenditures	$	4,539	$	1,524	$	3,015	$	-

	Three Months Ended June 30, 2019
	Total		New York		San Francisco		Other
Capital Expenditures: ⁽¹⁾
Expenditures to maintain assets	$	4,006	$	3,673	$	192	$	141
Second generation tenant improvements		8,716		5,952		2,455		309
Second generation leasing commissions		5,664		3,175		2,177		312
First generation leasing costs and capital expenditures		806		-		806		-
Total Capital Expenditures	$	19,192	$	12,800	$	5,630	$	762

Redevelopment Expenditures: ⁽¹⁾
300 Mission Street (Lobby Renovation)	$	2,446	$	-	$	2,446	$	-
1325 Avenue of the Americas (Lobby Renovation)		2,354		2,354		-		-
31 West 52nd Street (Lobby Renovation)		338		338		-		-
Other		3,646		1,948		1,698		-
Total Redevelopment Expenditures	$	8,784	$	4,640	$	4,144	$	-

⁽¹⁾	See page 47 for our definition of this measure.

- 45 -

CASH BASIS CAPITAL EXPENDITURES

(unaudited and in thousands)

	Six Months Ended June 30, 2020
	Total		New York		San Francisco		Other
Capital Expenditures: ⁽¹⁾
Expenditures to maintain assets	$	8,570	$	5,796	$	2,548	$	226
Second generation tenant improvements		27,007		20,075		6,932		-
Second generation leasing commissions		7,688		2,194		5,494		-
First generation leasing costs and capital expenditures		-		-		-		-
Total Capital Expenditures	$	43,265	$	28,065	$	14,974	$	226

Redevelopment Expenditures: ⁽¹⁾
One Market Plaza	$	3,347	$	-	$	3,347	$	-
Other		6,194		3,695		2,499		-
Total Redevelopment Expenditures	$	9,541	$	3,695	$	5,846	$	-

	Six Months Ended June 30, 2019
	Total		New York		San Francisco		Other
Capital Expenditures: ⁽¹⁾
Expenditures to maintain assets	$	7,541	$	5,985	$	1,214	$	342
Second generation tenant improvements		22,912		17,520		5,012		380
Second generation leasing commissions		6,974		4,201		2,461		312
First generation leasing costs and capital expenditures		1,653		-		1,653		-
Total Capital Expenditures	$	39,080	$	27,706	$	10,340	$	1,034

Redevelopment Expenditures: ⁽¹⁾
1325 Avenue of the Americas (Lobby Renovation)	$	4,234	$	4,234	$	-	$	-
300 Mission Street (Lobby Renovation)		4,212		-		4,212		-
31 West 52nd Street (Lobby Renovation)		3,486		3,486		-		-
Other		5,875		2,488		3,387		-
Total Redevelopment Expenditures	$	17,807	$	10,208	$	7,599	$	-

⁽¹⁾	See page 47 for our definition of this measure.

- 46 -



		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.

- 47 -


		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 in our New York and San Francisco portfolios 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 and not classified as discontinued operations.

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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