pgre-ex992

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

Exhibit 99.2

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

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		TABLE OF CONTENTS

		Page
Company Profile		4

Research Coverage		5

Selected Financial Information
	Guidance	6
	Financial Highlights	7
	Consolidated Balance Sheets	8
	Consolidated Statements of Income	9
	Select Income Statement Data	10
	Funds From Operations ("FFO")	11
	Funds Available for Distribution ("FAD")	12
	Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate ("EBITDAre")	13
	Net Operating Income ("NOI")	14 - 16
	Same Store Results	17 - 20
	Consolidated Joint Ventures and Fund	21 - 26
	Unconsolidated Joint Ventures	27 - 32
	Capital Structure	33
	Debt Analysis	34
	Debt Maturities	35

Selected Property Data
	Portfolio Summary	36
	Same Store Leased Occupancy	37 - 38
	Top Tenants and Industry Diversification	39
	Leasing Activity	40 - 41
	Lease Expirations	42 - 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.

MANAGEMENT

Albert Behler		Chairman, Chief Executive Officer and President
Wilbur Paes		Chief Operating Officer, Chief Financial Officer and Treasurer
Peter Brindley		Executive Vice President, Head of Real Estate
David Zobel		Executive Vice President, Head of Acquisitions
Gage Johnson		Senior Vice President, General Counsel and Secretary
Ermelinda Berberi		Senior Vice President, Chief Accounting Officer

BOARD OF DIRECTORS

Albert Behler		Director, Chairman of the Board
Thomas Armbrust		Director
Martin Bussmann		Director
Colin Dyer		Director
Karin Klein		Director
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, Chair of Compensation Committee

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
Bank of America Merrill Lynch	BTIG	Deutsche Bank
(646) 855-5808	(212) 738-6140	(904) 520-4973
james.feldman@baml.com	tcatherwood@btig.com	derek.johnston@db.com

Steve Sakwa	Daniel Ismail	Haendel St. Juste
Evercore ISI	Green Street Advisors	Mizuho Securities USA Inc.
(212) 446-9462	(949) 640-8780	(212) 205-7860
steve.sakwa@evercoreisi.com	dismail@greenst.com	haendel.st.juste@mizuhogroup.com

Vikram Malhotra	Blaine Heck	Andrew Rosivach
Morgan Stanley	Wells Fargo	Wolfe Research
(212) 761-7064	(443) 263-6529	(646) 582-9250
vikram.malhotra@morganstanley.com	blaine.heck@wellsfargo.com	arosivach@wolferesearch.com

⁽¹⁾	With the exception of Green Street Advisors, an independent research firm, the equity analysts listed above are those analysts that, according to First Call Corporation, have published research material on the Company and are listed as covering the Company. Please note that any opinions, estimates or forecasts regarding the Company's performance made by such analysts do not represent the opinions, estimates or forecasts of the Company or its management. The Company does not by its reference above, imply its endorsement of or concurrence with any information, conclusions or recommendations made by any such analysts.

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GUIDANCE

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

				Full Year 2021
(Amounts per diluted share)				Low			High
			Estimated net loss attributable to common stockholders	$	(0.12	)	$	(0.08	)
			Our share of real estate depreciation and amortization		0.98			0.98
			Estimated Core FFO ⁽¹⁾⁽²⁾	$	0.86		$	0.90

	Operating Assumptions:
		Leasing Activity (square feet)			700,000			900,000
		PGRE's share of Same Store Leased % ⁽²⁾ at year end			88.0	%		90.0	%
		(Decrease) increase in PGRE's share of Same Store Cash NOI ⁽²⁾			(1.0	%)		1.0	%
		Decrease in PGRE's share of Same Store NOI ⁽²⁾			(10.5	%)		(8.5	%)

	Financial Assumptions (at share):
		Estimated net loss		$	(29,000	)	$	(19,000	)
			Depreciation and amortization		236,000			236,000
			General and administrative expenses		59,000			57,000
			Interest and debt expense, including amortization of deferred financing costs		134,000			132,000
			Fee income, net of income taxes		(25,500	)		(27,500	)
		NOI ⁽²⁾			374,500			378,500
			Straight-line rent adjustments and above and below-market lease revenue, net		(8,000	)		(9,000	)
		Cash NOI ⁽²⁾		$	366,500		$	369,500

⁽¹⁾		We are raising our Estimated Core FFO Guidance for the full year of 2021, which is reconciled above to estimated net loss attributable to common stockholders per diluted share in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The estimated net loss attributable to common stockholders per diluted share is not a projection and is being provided solely to satisfy the disclosure requirements of the U.S. Securities and Exchange Commission ("SEC"). Except as described above, these estimates reflect management's view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels and the earnings impact of the events referenced in our earnings release issued on July 27, 2021 and otherwise referenced during our conference call scheduled for July 28, 2021. These estimates do not include the impact on operating results from possible future property acquisitions or dispositions, capital markets activity or realized and unrealized gains or losses on real estate fund investments. The estimates set forth above may be subject to fluctuations as a result of several factors, including the negative impact of the COVID-19 global pandemic, straight-line rent adjustments and the amortization of above and below-market leases. There can be no assurance that our actual results will not differ materially from the estimates set forth above.
⁽²⁾		See page 47 for our definition of this measure.

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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, 2021			June 30, 2020			March 31, 2021			June 30, 2021			June 30, 2020
	Net (loss) income attributable to common stockholders:
		Continuing operations	$	(15,943	)	$	(8,234	)	$	(3,578	)	$	(19,521	)	$	(6,266	)
		Discontinued operations		-			1,964			-			-			3,344
	Net loss attributable to common stockholders		$	(15,943	)	$	(6,270	)	$	(3,578	)	$	(19,521	)	$	(2,922	)

	Net (loss) income per share - basic and diluted:
		Per share from continuing operations	$	(0.07	)	$	(0.04	)	$	(0.02	)	$	(0.09	)	$	(0.03	)
		Per share from discontinued operations		-			0.01			-			-			0.02
	Net loss per share - basic and diluted		$	(0.07	)	$	(0.03	)	$	(0.02	)	$	(0.09	)	$	(0.01	)

	Core FFO attributable to common stockholders⁽¹⁾		$	47,608		$	50,118		$	50,572		$	98,180		$	111,627
		Per share - diluted	$	0.22		$	0.23		$	0.23		$	0.45		$	0.50

	PGRE's share of Cash NOI ⁽¹⁾		$	93,856		$	89,216		$	89,443		$	183,299		$	187,745
	PGRE's share of NOI ⁽¹⁾		$	96,441		$	98,823		$	95,564		$	192,005		$	209,380

Same Store Cash NOI ⁽¹⁾	% Change			Same Store NOI ⁽¹⁾	% Change
Three Months Ended June 30, 2021 vs. June 30, 2020		3.0	%	Three Months Ended June 30, 2021 vs. June 30, 2020		(11.0	%)
Six Months Ended June 30, 2021 vs. June 30, 2020		0.1	%	Six Months Ended June 30, 2021 vs. June 30, 2020		(9.2	%)

PORTFOLIO STATISTICS (at PGRE Share)

	As of
	June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020
Leased % ⁽¹⁾		88.0	%		88.6	%		95.2	%		95.5	%		95.6	%

Same Store Leased % ⁽¹⁾	% Change			Same Store Leased % ⁽¹⁾	% Change
June 30, 2021 vs. March 31, 2021		(0.6	%)	June 30, 2021 vs. June 30, 2020		(7.7	%)
June 30, 2021 vs. December 31, 2020		(7.2	%)

COMMON SHARE DATA

		Three Months Ended
Share Price:		June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020
	High	$	11.65		$	10.56		$	10.36		$	7.99		$	10.38
	Low	$	9.86		$	8.51		$	5.54		$	6.69		$	6.95
	Closing (end of period)	$	10.07		$	10.13		$	9.04		$	7.08		$	7.71

Dividends per common share		$	0.07		$	0.07		$	0.07		$	0.10		$	0.10
Annualized dividends per common share		$	0.28		$	0.28		$	0.28		$	0.40		$	0.40
Dividend yield (on closing share price)			2.8	%		2.8	%		3.1	%		5.6	%		5.2	%

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

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		CONSOLIDATED BALANCE SHEETS

(unaudited and in thousands)

			June 30, 2021			December 31, 2020
Assets:
	Real estate, at cost:
		Land	$	1,966,237		$	1,966,237
		Buildings and improvements		6,011,239			5,997,078
				7,977,476			7,963,315
		Accumulated depreciation and amortization		(1,026,542	)		(966,697	)
	Real estate, net			6,950,934			6,996,618
	Cash and cash equivalents			475,289			434,530
	Restricted cash			32,552			30,794
	Investments in unconsolidated joint ventures			407,564			412,724
	Investments in unconsolidated real estate funds			12,979			12,917
	Accounts and other receivables			13,366			17,502
	Deferred rent receivable			339,874			330,239
	Deferred charges, net			111,275			116,278
	Intangible assets, net			135,764			153,519
	Other assets			53,543			48,976
Total assets			$	8,533,140		$	8,554,097

Liabilities:
	Notes and mortgages payable, net		$	3,816,759		$	3,800,739
	Revolving credit facility			-			-
	Accounts payable and accrued expenses			103,895			101,901
	Dividends and distributions payable			16,897			16,796
	Intangible liabilities, net			50,392			55,996
	Other liabilities			65,074			62,931
Total liabilities				4,053,017			4,038,363

Equity:
	Paramount Group, Inc. equity			3,600,279			3,653,177
	Noncontrolling interests in:
		Consolidated joint ventures		442,428			437,161
		Consolidated real estate fund		79,085			79,017
		Operating Partnership		358,331			346,379
Total equity				4,480,123			4,515,734

Total liabilities and equity			$	8,533,140		$	8,554,097

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		CONSOLIDATED STATEMENTS OF INCOME

(unaudited and in thousands, except per share amounts)

		Three Months Ended									Six Months Ended
		June 30, 2021			June 30, 2020			March 31, 2021			June 30, 2021			June 30, 2020
Revenues:
	Rental revenue ⁽¹⁾	$	174,628		$	163,989		$	173,146		$	347,774		$	339,414
	Fee and other income ⁽¹⁾		7,641			7,129			8,020			15,661			15,690
Total revenues			182,269			171,118			181,166			363,435			355,104

Expenses:
	Operating		64,072			64,313			66,618			130,690			131,327
	Depreciation and amortization		59,925			58,716			58,305			118,230			117,143
	General and administrative ⁽¹⁾		18,418			17,901			14,364			32,782			30,150
	Transaction related costs		135			258			281			416			461
Total expenses			142,550			141,188			139,568			282,118			279,081

Other income (expense):
	Loss from unconsolidated joint ventures		(15,717	)		(5,955	)		(5,316	)		(21,033	)		(10,176	)
	Income from unconsolidated real estate funds		148			89			180			328			141
	Interest and other income, net ⁽¹⁾		1,070			2,252			1,302			2,372			1,256
	Interest and debt expense ⁽¹⁾		(34,914	)		(36,009	)		(34,739	)		(69,653	)		(72,628	)
(Loss) income from continuing operations, before income taxes			(9,694	)		(9,693	)		3,025			(6,669	)		(5,384	)
	Income tax expense		(434	)		(138	)		(1,141	)		(1,575	)		(742	)
(Loss) income from continuing operations, net			(10,128	)		(9,831	)		1,884			(8,244	)		(6,126	)
Income from discontinued operations, net			-			2,147			-			-			3,668
Net (loss) income			(10,128	)		(7,684	)		1,884			(8,244	)		(2,458	)
Less net (income) loss attributable to noncontrolling interests in:
	Consolidated joint ventures		(7,428	)		(405	)		(5,728	)		(13,156	)		(1,919	)
	Consolidated real estate fund		29			1,235			(85	)		(56	)		1,212
	Operating Partnership		1,584			584			351			1,935			243
Net loss attributable to common stockholders		$	(15,943	)	$	(6,270	)	$	(3,578	)	$	(19,521	)	$	(2,922	)

Net (loss) income per diluted share:
	Loss from continuing operations, net	$	(0.07	)	$	(0.04	)	$	(0.02	)	$	(0.09	)	$	(0.03	)
	Income from discontinued operations, net		-			0.01			-			-			0.02
Net loss per diluted share		$	(0.07	)	$	(0.03	)	$	(0.02	)	$	(0.09	)	$	(0.01	)

⁽¹⁾

See page 10 for details.

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		SELECT INCOME STATEMENT DATA

(unaudited and in thousands)

		Three Months Ended						Six Months Ended
Rental Revenue:		June 30, 2021		June 30, 2020		March 31, 2021		June 30, 2021		June 30, 2020
	Property rentals	$	157,043	$	143,422	$	152,926	$	309,969	$	292,560
	Tenant reimbursements		9,415		10,099		12,069		21,484		24,148
	Straight-line rent adjustments		2,350		9,233		7,282		9,632		19,928
	Amortization of above and below-market leases, net		758		1,235		855		1,613		2,778
	Lease termination income		5,062		-		14		5,076		-
Total rental revenue		$	174,628	$	163,989	$	173,146	$	347,774	$	339,414

			Three Months Ended						Six Months Ended
Fee and Other Income:			June 30, 2021		June 30, 2020		March 31, 2021		June 30, 2021		June 30, 2020
	Asset management		$	3,409	$	3,571	$	3,486	$	6,895	$	7,092
	Property management			2,085		2,239		2,196		4,281		4,689
	Acquisition, disposition and leasing			439		-		-		439		-
	Other			268		399		988		1,256		758
	Total fee income			6,201		6,209		6,670		12,871		12,539
	Other (primarily parking income and tenant requested services,
		including overtime heating and cooling)		1,440		920		1,350		2,790		3,151
Total fee and other income			$	7,641	$	7,129	$	8,020	$	15,661	$	15,690

			Three Months Ended						Six Months Ended
General and Administrative:			June 30, 2021		June 30, 2020		March 31, 2021		June 30, 2021		June 30, 2020
	General and administrative expenses		$	17,745	$	16,077	$	13,452	$	31,197	$	30,310
	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, net")		673		1,824		912		1,585		(160	)
Total general and administrative			$	18,418	$	17,901	$	14,364	$	32,782	$	30,150

			Three Months Ended						Six Months Ended
Interest and Other Income, net:			June 30, 2021		June 30, 2020		March 31, 2021		June 30, 2021		June 30, 2020
	Interest income, net		$	397	$	428	$	390	$	787	$	1,416
	Mark-to-market of deferred compensation plan assets (offset by
		an increase (decrease) in the mark-to-market of plan liabilities,
		which is included in "general and administrative" expenses)		673		1,824		912		1,585		(160	)
Total interest and other income, net			$	1,070	$	2,252	$	1,302	$	2,372	$	1,256

		Three Months Ended						Six Months Ended
Interest and Debt Expense:		June 30, 2021		June 30, 2020		March 31, 2021		June 30, 2021		June 30, 2020
	Interest expense	$	32,593	$	33,690	$	32,420	$	65,013	$	67,991
	Amortization of deferred financing costs		2,321		2,319		2,319		4,640		4,637
Total interest and debt expense		$	34,914	$	36,009	$	34,739	$	69,653	$	72,628

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		FFO

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

			Three Months Ended									Six Months Ended
			June 30, 2021			June 30, 2020			March 31, 2021			June 30, 2021			June 30, 2020
Reconciliation of net (loss) income to FFO and Core FFO:
	Net (loss) income		$	(10,128	)	$	(7,684	)	$	1,884		$	(8,244	)	$	(2,458	)
	Real estate depreciation and amortization (including our share
		of unconsolidated joint ventures)		70,264			70,546			69,141			139,405			141,486
	Adjustments related to discontinued operations			-			-			-			-			690
	FFO ⁽¹⁾			60,136			62,862			71,025			131,161			139,718
	Less FFO attributable to noncontrolling interests in:
		Consolidated joint ventures		(18,453	)		(8,711	)		(15,074	)		(33,527	)		(17,680	)
		Consolidated real estate fund		29			1,235			(85	)		(56	)		1,212
	FFO attributable to Paramount Group Operating Partnership			41,712			55,386			55,866			97,578			123,250
	Less FFO attributable to noncontrolling interests in Operating Partnership			(3,769	)		(4,723	)		(4,992	)		(8,761	)		(11,001	)
	FFO attributable to common stockholders⁽¹⁾		$	37,943		$	50,663		$	50,874		$	88,817		$	112,249
	Per diluted share		$	0.17		$	0.23		$	0.23		$	0.40		$	0.50

	FFO		$	60,136		$	62,862		$	71,025		$	131,161		$	139,718
	Non-core items:
		Adjustments to equity in earnings for contributions to (distributions from) an unconsolidated joint venture		10,492			(920	)		(577	)		9,915			(1,308	)
		Other, net		133			324			246			379			627
	Core FFO ⁽¹⁾			70,761			62,266			70,694			141,455			139,037
	Less Core FFO attributable to noncontrolling interests in:
		Consolidated joint ventures		(18,453	)		(8,711	)		(15,074	)		(33,527	)		(17,680	)
		Consolidated real estate fund		29			1,235			(85	)		(56	)		1,212
	Core FFO attributable to Paramount Group Operating Partnership			52,337			54,790			55,535			107,872			122,569
	Less Core FFO attributable to noncontrolling interests in Operating Partnership			(4,729	)		(4,672	)		(4,963	)		(9,692	)		(10,942	)
	Core FFO attributable to common stockholders ⁽¹⁾		$	47,608		$	50,118		$	50,572		$	98,180		$	111,627
	Per diluted share		$	0.22		$	0.23		$	0.23		$	0.45		$	0.50

Reconciliation of weighted average shares outstanding:
	Weighted average shares outstanding			218,696,284			221,573,199			218,666,005			218,681,228			224,671,206
	Effect of dilutive securities			51,117			4,225			50,920			50,563			20,164
	Denominator for FFO and Core FFO per diluted share			218,747,401			221,577,424			218,716,925			218,731,791			224,691,370

⁽¹⁾

See page 47 for our definition of this measure.

- 11 -


		FAD

(unaudited and in thousands)

				Three Months Ended									Six Months Ended
				June 30, 2021			June 30, 2020			March 31, 2021			June 30, 2021			June 30, 2020
Reconciliation of Core FFO to FAD:
	Core FFO			$	70,761		$	62,266		$	70,694		$	141,455		$	139,037
	Add (subtract) adjustments to arrive at FAD:
		Straight-line rent adjustments (including our share
			of unconsolidated joint ventures)		(2,958	)		(10,037	)		(8,102	)		(11,060	)		(21,841	)
		Amortization of above and below-market leases, net (including
			our share of unconsolidated joint ventures)		(1,662	)		(1,701	)		(1,803	)		(3,465	)		(4,533	)
		Amortization of deferred financing costs (including our share
			of unconsolidated joint ventures)		2,643			2,651			2,642			5,285			5,281
		Amortization of stock-based compensation expense			4,743			4,241			5,486			10,229			9,638
		Expenditures to maintain assets			(4,175	)		(3,861	)		(1,956	)		(6,131	)		(8,570	)
		Second generation tenant improvements and leasing commissions			(20,835	)		(10,762	)		(8,241	)		(29,076	)		(34,695	)
		Adjustments related to discontinued operations			-			114			-			-			233
	FAD ⁽¹⁾				48,517			42,911			58,720			107,237			84,550
	Less FAD attributable to noncontrolling interests in:
		Consolidated joint ventures			(6,209	)		(3,066	)		(6,890	)		(13,099	)		(5,764	)
		Consolidated real estate fund			29			1,235			(85	)		(56	)		1,212
	FAD attributable to Paramount Group Operating Partnership				42,337			41,080			51,745			94,082			79,998
	Less FAD attributable to noncontrolling interests in Operating Partnership				(3,825	)		(3,503	)		(4,624	)		(8,449	)		(7,103	)
	FAD attributable to common stockholders ^{(1) (2)}			$	38,512		$	37,577		$	47,121		$	85,633		$	72,895

	Dividends declared on common stock			$	15,327		$	22,176		$	15,327		$	30,654		$	44,422

⁽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.

- 12 -


		EBITDAre

(unaudited and in thousands)

				Three Months Ended									Six Months Ended
				June 30, 2021			June 30, 2020			March 31, 2021			June 30, 2021			June 30, 2020
Reconciliation of net (loss) income to EBITDAre and Adjusted EBITDAre:
	Net (loss) income			$	(10,128	)	$	(7,684	)	$	1,884		$	(8,244	)	$	(2,458	)
	Add (subtract) adjustments to arrive at EBITDAre and Adjusted EBITDAre:
		Depreciation and amortization (including our share
			of unconsolidated joint ventures)		70,264			70,546			69,141			139,405			141,486
		Interest and debt expense (including our share
			of unconsolidated joint ventures)		40,347			41,412			40,096			80,443			83,533
		Income tax expense (including our share of
			unconsolidated joint ventures)		433			140			1,149			1,582			758
		Adjustments related to discontinued operations			-			-			-			-			690
	EBITDAre⁽¹⁾				100,916			104,414			112,270			213,186			224,009
	Less EBITDAre attributable to noncontrolling interests in:
		Consolidated joint ventures			(26,241	)		(15,750	)		(22,743	)		(48,984	)		(31,543	)
		Consolidated real estate fund			25			1,211			(88	)		(63	)		1,080
	PGRE's share of EBITDAre ⁽¹⁾			$	74,700		$	89,875		$	89,439		$	164,139		$	193,546



	EBITDAre			$	100,916		$	104,414		$	112,270		$	213,186		$	224,009
	Add (subtract) adjustments to arrive at Adjusted EBITDAre:
		Adjustments to equity in earnings for contributions to (distributions from) an unconsolidated joint venture			10,492			(920	)		(577	)		9,915			(1,308	)
		Other, net			14			1,611			45			59			1,640
	Adjusted EBITDAre ⁽¹⁾				111,422			105,105			111,738			223,160			224,341
	Less Adjusted EBITDAre attributable to noncontrolling interests in:
		Consolidated joint ventures			(26,241	)		(15,750	)		(22,743	)		(48,984	)		(31,543	)
	PGRE's share of Adjusted EBITDAre ⁽¹⁾			$	85,181		$	89,355		$	88,995		$	174,176		$	192,798

⁽¹⁾

See page 47 for our definition of this measure.

- 13 -


		NOI

(unaudited and in thousands)

				Three Months Ended									Six Months Ended
				June 30, 2021			June 30, 2020			March 31, 2021			June 30, 2021			June 30, 2020
Reconciliation of net (loss) income to NOI and Cash NOI:
	Net (loss) income			$	(10,128	)	$	(7,684	)	$	1,884		$	(8,244	)	$	(2,458	)
	Add (subtract) adjustments to arrive at NOI and Cash NOI:
		Depreciation and amortization			59,925			58,716			58,305			118,230			117,143
		General and administrative			18,418			17,901			14,364			32,782			30,150
		Interest and debt expense			34,914			36,009			34,739			69,653			72,628
		Income tax expense			434			138			1,141			1,575			742
		NOI from unconsolidated joint ventures			10,557			10,376			10,326			20,883			23,768
		Loss from unconsolidated joint ventures			15,717			5,955			5,316			21,033			10,176
		Fee income			(6,201	)		(6,209	)		(6,670	)		(12,871	)		(12,539	)
		Interest and other income, net			(1,070	)		(2,252	)		(1,302	)		(2,372	)		(1,256	)
		Adjustments related to discontinued operations			-			-			-			-			690
		Other, net			(13	)		169			101			88			320
	NOI ⁽¹⁾				122,553			113,119			118,204			240,757			239,364
	Less NOI attributable to noncontrolling interests in:
		Consolidated joint ventures			(26,233	)		(15,733	)		(22,725	)		(48,958	)		(31,424	)
		Consolidated real estate fund			121			1,437			85			206			1,440
	PGRE's share of NOI⁽¹⁾			$	96,441		$	98,823		$	95,564		$	192,005		$	209,380

	NOI			$	122,553		$	113,119		$	118,204		$	240,757		$	239,364
	Less:
		Straight-line rent adjustments (including our share of
			unconsolidated joint ventures)		(2,958	)		(10,037	)		(8,102	)		(11,060	)		(21,841	)
		Amortization of above and below-market leases, net
			(including our share of unconsolidated joint ventures)		(1,662	)		(1,701	)		(1,803	)		(3,465	)		(4,533	)
		Adjustments related to discontinued operations			-			114			-			-			233
	Cash NOI⁽¹⁾				117,933			101,495			108,299			226,232			213,223
	Less Cash NOI attributable to noncontrolling interests in:
		Consolidated joint ventures			(24,198	)		(13,716	)		(18,941	)		(43,139	)		(26,918	)
		Consolidated real estate fund			121			1,437			85			206			1,440
	PGRE's share of Cash NOI ⁽¹⁾			$	93,856		$	89,216		$	89,443		$	183,299		$	187,745

⁽¹⁾

See page 47 for our definition of this measure.

- 14 -


		NOI

(unaudited and in thousands)

				Three Months Ended June 30, 2021
				Total			New York			San Francisco			Other
Reconciliation of net (loss) income to NOI and Cash NOI:
	Net (loss) income			$	(10,128	)	$	(8,357	)	$	13,965		$	(15,736	)
	Add (subtract) adjustments to arrive at NOI and Cash NOI:
		Depreciation and amortization			59,925			38,289			20,660			976
		General and administrative			18,418			-			-			18,418
		Interest and debt expense			34,914			21,339			12,540			1,035
		Income tax expense			434			5			-			429
		NOI from unconsolidated joint ventures			10,557			2,749			7,852			(44	)
		Loss from unconsolidated joint ventures			15,717			11,111			4,460			146
		Fee income			(6,201	)		-			-			(6,201	)
		Interest and other (income) loss, net			(1,070	)		3			(18	)		(1,055	)
		Other, net			(13	)		-			-			(13	)
	NOI ⁽¹⁾				122,553			65,139			59,459			(2,045	)
	Less NOI attributable to noncontrolling interests in:
		Consolidated joint ventures			(26,233	)		(2,519	)		(23,714	)		-
		Consolidated real estate fund			121			-			-			121
	PGRE's share of NOI for the three months ended June 30, 2021			$	96,441		$	62,620		$	35,745		$	(1,924	)
	PGRE's share of NOI for the three months ended June 30, 2020			$	98,823		$	65,716		$	32,635		$	472


	NOI			$	122,553		$	65,139		$	59,459		$	(2,045	)
	Add (subtract) adjustments to arrive at Cash NOI:
		Straight-line rent adjustments (including our share
			of unconsolidated joint ventures)		(2,958	)		158			(3,086	)		(30	)
		Amortization of above and below-market leases, net (including
			our share of unconsolidated joint ventures)		(1,662	)		371			(2,033	)		-
	Cash NOI⁽¹⁾				117,933			65,668			54,340			(2,075	)
	Less Cash NOI attributable to noncontrolling interests in:
		Consolidated joint ventures			(24,198	)		(2,479	)		(21,719	)		-
		Consolidated real estate fund			121			-			-			121
	PGRE's share of Cash NOI for the three months ended June 30, 2021			$	93,856		$	63,189		$	32,621		$	(1,954	)
	PGRE's share of Cash NOI for the three months ended June 30, 2020			$	89,216		$	60,262		$	28,396		$	558

⁽¹⁾

See page 47 for our definition of this measure.

- 15 -


		NOI

(unaudited and in thousands)

				Six Months Ended June 30, 2021
				Total			New York			San Francisco			Other
Reconciliation of net (loss) income to NOI and Cash NOI:
	Net (loss) income			$	(8,244	)	$	(6,084	)	$	24,885		$	(27,045	)
	Add (subtract) adjustments to arrive at NOI and Cash NOI:
		Depreciation and amortization			118,230			77,573			38,712			1,945
		General and administrative			32,782			-			-			32,782
		Interest and debt expense			69,653			42,598			24,893			2,162
		Income tax expense			1,575			5			4			1,566
		NOI from unconsolidated joint ventures			20,883			5,570			15,389			(76	)
		Loss from unconsolidated joint ventures			21,033			11,094			9,702			237
		Fee income			(12,871	)		-			-			(12,871	)
		Interest and other (income) loss, net			(2,372	)		17			(55	)		(2,334	)
		Other, net			88			-			-			88
	NOI ⁽¹⁾				240,757			130,773			113,530			(3,546	)
	Less NOI attributable to noncontrolling interests in:
		Consolidated joint ventures			(48,958	)		(5,112	)		(43,846	)		-
		Consolidated real estate fund			206			-			-			206
	PGRE's share of NOI for the six months ended June 30, 2021			$	192,005		$	125,661		$	69,684		$	(3,340	)
	PGRE's share of NOI for the six months ended June 30, 2020			$	209,380		$	141,208		$	67,074		$	1,098


	NOI			$	240,757		$	130,773		$	113,530		$	(3,546	)
	Add (subtract) adjustments to arrive at Cash NOI:
		Straight-line rent adjustments (including our share
			of unconsolidated joint ventures)		(11,060	)		(1,637	)		(9,483	)		60
		Amortization of above and below-market leases, net (including
			our share of unconsolidated joint ventures)		(3,465	)		638			(4,103	)		-
	Cash NOI⁽¹⁾				226,232			129,774			99,944			(3,486	)
	Less Cash NOI attributable to noncontrolling interests in:
		Consolidated joint ventures			(43,139	)		(4,964	)		(38,175	)		-
		Consolidated real estate fund			206			-			-			206
	PGRE's share of Cash NOI for the six months ended June 30, 2021			$	183,299		$	124,810		$	61,769		$	(3,280	)
	PGRE's share of Cash NOI for the six months ended June 30, 2020			$	187,745		$	129,732		$	56,629		$	1,384

⁽¹⁾

See page 47 for our definition of this measure.

- 16 -


		SAME STORE RESULTS

(unaudited and in thousands)

SAME STORE CASH NOI ⁽¹⁾			Three Months Ended June 30, 2021
			Total			New York			San Francisco			Other
	PGRE's share of Cash NOI for the three months ended June 30, 2021		$	93,856		$	63,189		$	32,621		$	(1,954	)
		Dispositions / Discontinued Operations		-			-			-			-
		Other, net		(1,885	)		(776	)		(3,063	)		1,954
	PGRE's share of Same Store Cash NOI for the three months ended June 30, 2021		$	91,971		$	62,413		$	29,558		$	-

		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
	Dispositions / Discontinued Operations		(3,456	)		(1,195	)	⁽²⁾		-		(2,261	)	⁽³⁾
	Reserves for uncollectible accounts receivable		1,940			1,152				788		-
	Other, net		1,626			(77	)			-		1,703
PGRE's share of Same Store Cash NOI for the three months ended June 30, 2020		$	89,326		$	60,142			$	29,184	$	-

	Increase in PGRE's share of Same Store Cash NOI	$	2,645			$	2,271			$	374			$	-
	% Increase		3.0	%			3.8	%			1.3	%

⁽¹⁾	See page 47 for our definition of this measure.
⁽²⁾	Represents Cash NOI attributable to the 10.0% sale of 1633 Broadway for the months in which it was not owned by us in both reporting periods.
⁽³⁾	Represents Cash NOI from discontinued operations (1899 Pennsylvania Avenue in Washington, D.C.).

- 17 -


		SAME STORE RESULTS

(unaudited and in thousands)

SAME STORE NOI ⁽¹⁾			Three Months Ended June 30, 2021
			Total			New York			San Francisco			Other
	PGRE's share of NOI for the three months ended June 30, 2021		$	96,441		$	62,620		$	35,745		$	(1,924	)
		Dispositions / Discontinued Operations		-			-			-			-
		Other, net		(1,908	)		(776	)		(3,056	)		1,924
	PGRE's share of Same Store NOI for the three months ended June 30, 2021		$	94,533		$	61,844		$	32,689		$	-

		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
	Dispositions / Discontinued Operations		(3,881	)		(1,734	)	⁽²⁾		-		(2,147	)	⁽³⁾
	Non-cash write-offs (primarily straight-line rent receivables)		7,685			4,993				2,692		-
	Reserves for uncollectible accounts receivable		1,940			1,152				788		-
	Other, net		1,598			(77	)			-		1,675
PGRE's share of Same Store NOI for the three months ended June 30, 2020		$	106,165		$	70,050			$	36,115	$	-

	Decrease in PGRE's share of Same Store NOI	$	(11,632	)		$	(8,206	)		$	(3,426	)		$	-
	% Decrease		(11.0	%)			(11.7	%)			(9.5	%)

⁽¹⁾	See page 47 for our definition of this measure.
⁽²⁾	Represents NOI attributable to the 10.0% sale of 1633 Broadway for the months in which it was not owned by us in both reporting periods.
⁽³⁾	Represents NOI from discontinued operations (1899 Pennsylvania Avenue in Washington, D.C.).

- 18 -


		SAME STORE RESULTS

(unaudited and in thousands)

SAME STORE CASH NOI ⁽¹⁾			Six Months Ended June 30, 2021
			Total		New York			San Francisco			Other
	PGRE's share of Cash NOI for the six months ended June 30, 2021		$	183,299	$	124,810		$	61,769		$	(3,280	)
		Dispositions / Discontinued Operations		-		-			-			-
		Other, net		1,123		(373	)		(1,784	)		3,280
	PGRE's share of Same Store Cash NOI for the six months ended June 30, 2021		$	184,422	$	124,437		$	59,985		$	-

		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
	Dispositions / Discontinued Operations		(8,480	)		(3,889	)	⁽²⁾		-			(4,591	)	⁽³⁾
	Reserves for uncollectible accounts receivable		1,940			1,152				788			-
	Other, net		3,047			(153	)			(7	)		3,207
PGRE's share of Same Store Cash NOI for the six months ended June 30, 2020		$	184,252		$	126,842			$	57,410		$	-

	Increase (decrease) in PGRE's share of Same Store Cash NOI	$	170			$	(2,405	)		$	2,575			$	-
	% Increase (decrease)		0.1	%			(1.9	%)			4.5	%

⁽¹⁾	See page 47 for our definition of this measure.
⁽²⁾	Represents Cash NOI attributable to the 10.0% sale of 1633 Broadway for the months in which it was not owned by us in both reporting periods.
⁽³⁾	Represents Cash NOI from discontinued operations (1899 Pennsylvania Avenue in Washington, D.C.).

- 19 -


		SAME STORE RESULTS

(unaudited and in thousands)

SAME STORE NOI ⁽¹⁾			Six Months Ended June 30, 2021
			Total		New York			San Francisco			Other
	PGRE's share of NOI for the six months ended June 30, 2021		$	192,005	$	125,661		$	69,684		$	(3,340	)
		Dispositions / Discontinued Operations		-		-			-			-
		Other, net		1,332		(231	)		(1,777	)		3,340
	PGRE's share of Same Store NOI for the six months ended June 30, 2021		$	193,337	$	125,430		$	67,907		$	-

		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
	Dispositions / Discontinued Operations		(9,155	)		(4,797	)	⁽²⁾		-			(4,358	)	⁽³⁾
	Non-cash write-offs (primarily straight-line rent receivables)		7,685			4,993				2,692			-
	Reserves for uncollectible accounts receivable		1,940			1,152				788			-
	Other, net		3,100			(153	)			(7	)		3,260
PGRE's share of Same Store NOI for the six months ended June 30, 2020		$	212,950		$	142,403			$	70,547		$	-

	Decrease in PGRE's share of Same Store NOI	$	(19,613	)		$	(16,973	)		$	(2,640	)		$	-
	% Decrease		(9.2	%)			(11.9	%)			(3.7	%)

⁽¹⁾	See page 47 for our definition of this measure.
⁽²⁾	Represents NOI attributable to the 10.0% sale of 1633 Broadway for the months in which it was not owned by us in both reporting periods.
⁽³⁾	Represents NOI from discontinued operations (1899 Pennsylvania Avenue in Washington, D.C.).

- 20 -


		CONSOLIDATED JOINT VENTURES AND FUND – BALANCE SHEETS

(unaudited and in thousands)

		As of June 30, 2021
		Consolidated Joint Ventures								Consolidated Fund
		Total Consolidated								Residential
		Joint Ventures		1633 Broadway		One Market Plaza		300 Mission Street		Development Fund
PGRE Ownership				90.0%		49.0%		31.1%		7.4%
Assets:
	Real estate, net	$	3,454,201	$	1,779,366	$	1,177,160	$	497,675	$	-
	Cash and cash equivalents		174,778		94,608		59,509		20,661		2,712
	Restricted cash		1,383		78		1,305		-		-
	Investments in unconsolidated joint ventures		-		-		-		-		67,292
	Accounts and other receivables		5,112		2,959		807		1,346		124
	Deferred rent receivable		202,371		116,265		64,306		21,800		-
	Deferred charges, net		52,008		28,465		14,498		9,045		-
	Intangible assets, net		69,171		52,566		12,726		3,879		-
	Other assets		8,893		1,280		6,668		945		15,726
Total Assets		$	3,967,917	$	2,075,587	$	1,336,979	$	555,351	$	85,854

Liabilities:
	Notes and mortgages payable, net	$	2,470,718	$	1,241,619	$	972,235	$	256,864	$	-
	Accounts payable and accrued expenses		54,125		18,561		27,775		7,789		61
	Intangible liabilities, net		30,504		17,067		12,579		858		-
	Other liabilities		5,412		1,020		4,389		3		-
Total Liabilities			2,560,759		1,278,267		1,016,978		265,514		61

Equity:
	Paramount Group, Inc. equity		964,730		718,456		156,867		89,407		6,708
	Noncontrolling interests		442,428		78,864		163,134		200,430		79,085
Total Equity			1,407,158		797,320		320,001		289,837		85,793

Total Liabilities and Equity		$	3,967,917	$	2,075,587	$	1,336,979	$	555,351	$	85,854

- 21 -


		CONSOLIDATED JOINT VENTURES AND FUND – BALANCE SHEETS

(unaudited and in thousands)

		As of December 31, 2020
		Consolidated Joint Ventures										Consolidated Fund
		Total Consolidated										Residential
		Joint Ventures		1633 Broadway		One Market Plaza		300 Mission Street		Other ⁽¹⁾		Development Fund
PGRE Ownership				90.0%		49.0%		31.1%		24.4%		7.4%
Assets:
	Real estate, net	$	3,470,766	$	1,794,011	$	1,186,842	$	489,913	$	-	$	-
	Cash and cash equivalents		130,752		68,049		51,081		10,654		968		2,512
	Restricted cash		1,383		78		1,305		-		-		-
	Investments in unconsolidated joint ventures		-		-		-		-		-		67,505
	Accounts and other receivables		6,747		3,867		900		1,980		-		124
	Deferred rent receivable		192,401		115,270		57,801		19,330		-		-
	Deferred charges, net		55,156		28,977		16,261		9,918		-		-
	Intangible assets, net		76,545		56,588		14,728		5,229		-		-
	Other assets		5,806		451		5,044		310		1		15,690
Total Assets		$	3,939,556	$	2,067,291	$	1,333,962	$	537,334	$	969	$	85,831

Liabilities:
	Notes and mortgages payable, net	$	2,457,272	$	1,241,121	$	971,717	$	244,434	$	-	$	-
	Accounts payable and accrued expenses		51,513		18,310		24,239		8,931		33		77
	Intangible liabilities, net		33,566		18,339		14,176		1,051		-		-
	Other liabilities		4,486		67		4,348		3		68		-
Total Liabilities			2,546,837		1,277,837		1,014,480		254,419		101		77

Equity:
	Paramount Group, Inc. equity		955,558		711,049		156,614		87,165		730		6,737
	Noncontrolling interests		437,161		78,405		162,868		195,750		138		79,017
Total Equity			1,392,719		789,454		319,482		282,915		868		85,754

Total Liabilities and Equity		$	3,939,556	$	2,067,291	$	1,333,962	$	537,334	$	969	$	85,831

⁽¹⁾

Represents PGRESS Equity Holdings, LP.

- 22 -

CONSOLIDATED JOINT VENTURES AND FUND – OPERATING RESULTS

(unaudited and in thousands)

		Three Months Ended June 30, 2021
		Consolidated Joint Ventures												Consolidated Fund
		Total Consolidated												Residential
		Joint Ventures			1633 Broadway			One Market Plaza			300 Mission Street			Development Fund
Total revenues		$	101,775		$	46,753		$	36,270		$	18,752		$	-
Total operating expenses			30,070			17,421			9,263			3,386			-
Net operating income ⁽¹⁾			71,705			29,332			27,007			15,366			-
Depreciation and amortization			(30,794	)		(14,035	)		(10,737	)		(6,022	)		-
Interest and other income, net			15			(3	)		20			(2	)		105
Interest and debt expense			(22,243	)		(9,703	)		(10,193	)		(2,347	)		(4	)
Loss from unconsolidated joint ventures			-			-			-			-			(132	)
Net income (loss) before income taxes			18,683			5,591			6,097			6,995			(31	)
Income tax expense			(5	)		(5	)		-			-			-
Net income (loss)		$	18,678		$	5,586		$	6,097		$	6,995		$	(31	)

PGRE's share
Ownership		Total			90.0%			49.0%			31.1%			7.4%
	Net income (loss)	$	10,178		$	5,025		$	2,982		$	2,171		$	(2	)
	Add: Management fee income		1,072			416			177			479			-
	PGRE's share of net income (loss)		11,250			5,441			3,159			2,650			(2	)
	Add: Real estate depreciation and amortization		19,769			12,634			5,262			1,873			-
	FFO/Core FFO ⁽¹⁾	$	31,019		$	18,075		$	8,421		$	4,523		$	(2	)

Noncontrolling interests' share
Ownership		Total			10.0%			51.0%			68.9%			92.6%
	Net income (loss)	$	8,500		$	561		$	3,115		$	4,824		$	(29	)
	Less: Management fee expense		(1,072	)		(416	)		(177	)		(479	)		-
	Net income (loss) attributable to noncontrolling interests		7,428			145			2,938			4,345			(29	)
	Add: Real estate depreciation and amortization		11,025			1,401			5,475			4,149			-
	FFO/Core FFO ⁽¹⁾	$	18,453		$	1,546		$	8,413		$	8,494		$	(29	)

⁽¹⁾	See page 47 for our definition of these measures.

- 23 -

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⁾	On May 27, 2020, we sold a 10.0% interest in 1633 Broadway. The amounts in this column represent 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, 2021
		Consolidated Joint Ventures												Consolidated Fund
		Total Consolidated												Residential
		Joint Ventures			1633 Broadway			One Market Plaza			300 Mission Street			Development Fund
Total revenues		$	199,013		$	94,232		$	72,598		$	32,183		$	-
Total operating expenses			60,038			34,809			18,589			6,640			-
Net operating income ⁽¹⁾			138,975			59,423			54,009			25,543			-
Depreciation and amortization			(59,079	)		(28,174	)		(20,881	)		(10,024	)		-
Interest and other income (loss), net			38			(17	)		54			1			253
Interest and debt expense			(44,229	)		(19,336	)		(20,278	)		(4,615	)		(4	)
Loss from unconsolidated joint ventures			-			-			-			-			(225	)
Net income before income taxes			35,705			11,896			12,904			10,905			24
Income tax expense			(6	)		(5	)		(1	)		-			(2	)
Net income		$	35,699		$	11,891		$	12,903		$	10,905		$	22

PGRE's share
Ownership		Total			90.0%			49.0%			31.1%			7.4%
	Net income (loss)	$	20,408		$	10,705		$	6,317		$	3,386		$	(34	)
	Add: Management fee income		2,135			827			371			937			-
	PGRE's share of net income (loss)		22,543			11,532			6,688			4,323			(34	)
	Add: Real estate depreciation and amortization		38,708			25,358			10,232			3,118			-
	FFO/Core FFO ⁽¹⁾	$	61,251		$	36,890		$	16,920		$	7,441		$	(34	)

Noncontrolling interests' share
Ownership		Total			10.0%			51.0%			68.9%			92.6%
	Net income	$	15,291		$	1,186		$	6,586		$	7,519		$	56
	Less: Management fee expense		(2,135	)		(827	)		(371	)		(937	)		-
	Net income attributable to noncontrolling interests		13,156			359			6,215			6,582			56
	Add: Real estate depreciation and amortization		20,371			2,816			10,649			6,906			-
	FFO/Core FFO ⁽¹⁾	$	33,527		$	3,175		$	16,864		$	13,488		$	56

⁽¹⁾	See page 47 for our definition of these measures.

- 25 -

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⁾	On May 27, 2020, we sold a 10.0% interest in 1633 Broadway. The amounts in this column represent 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.

- 26 -


		UNCONSOLIDATED JOINT VENTURES - BALANCE SHEETS

(unaudited and in thousands)

		As of June 30, 2021
				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	$	2,709,681	$	209,391		$	652,209	$	373,889	$	214,744	$	1,259,448
	Cash and cash equivalents		110,408		41,700			28,274		12,501		6,841		21,092
	Restricted cash		63,089		1,727			-		-		1,093		60,269
	Accounts and other receivables		2,234		733			281		239		-		981
	Deferred rent receivable		27,086		17,356			4,667		2,175		2,457		431
	Deferred charges, net		11,118		8,115			1,298		414		1,291		-
	Intangible assets, net		83,907		-			33,164		20,046		4,949		25,748
	Other assets		5,266		389			1,290		464		272		2,851
Total Assets		$	3,012,789	$	279,411		$	721,183	$	409,728	$	231,647	$	1,370,820

Liabilities:
	Notes and mortgages payable, net	$	1,871,120	$	297,569		$	405,255	$	186,671	$	150,905	$	830,720
	Accounts payable and accrued expenses		56,355		6,441			11,888		4,480		3,162		30,384
	Intangible liabilities, net		22,524		-			6,717		13,175		2,632		-
	Other liabilities		15,562		261			13,638		137		306		1,220
Total Liabilities			1,965,561		304,271			437,498		204,463		157,005		862,324


Total Equity			1,047,228		(24,860	)		283,685		205,265		74,642		508,496

Total Liabilities and Equity		$	3,012,789	$	279,411		$	721,183	$	409,728	$	231,647	$	1,370,820

⁽¹⁾

Represents 60 Wall Street, Oder-Center, Germany and One Steuart Lane.

- 27 -


		UNCONSOLIDATED JOINT VENTURES - BALANCE SHEETS

(unaudited and in thousands)

		As of December 31, 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	$	2,674,858	$	211,635		$	658,112	$	378,946	$	214,774	$	1,211,391
	Cash and cash equivalents		83,093		22,860			23,984		8,817		3,851		23,581
	Restricted cash		37,056		1,727			-		-		1,295		34,034
	Accounts and other receivables		4,074		1,191			1,999		501		230		153
	Deferred rent receivable		24,518		15,863			3,811		1,964		2,218		662
	Deferred charges, net		11,383		8,719			805		463		1,396		-
	Intangible assets, net		110,307		-			40,444		23,696		6,037		40,130
	Other assets		5,786		174			155		2,083		107		3,267
Total Assets		$	2,951,075	$	262,169		$	729,310	$	416,470	$	229,908	$	1,313,218

Liabilities:
	Notes and mortgages payable, net	$	1,801,084	$	297,364		$	402,057	$	186,592	$	146,693	$	768,378
	Accounts payable and accrued expenses		64,710		9,227			10,995		5,909		2,745		35,834
	Intangible liabilities, net		26,772		-			8,345		15,318		3,109		-
	Other liabilities		22,865		269			20,764		108		304		1,420
Total Liabilities			1,915,431		306,860			442,161		207,927		152,851		805,632


Total Equity			1,035,644		(44,691	)		287,149		208,543		77,057		507,586

Total Liabilities and Equity		$	2,951,075	$	262,169		$	729,310	$	416,470	$	229,908	$	1,313,218

⁽¹⁾

Represents 60 Wall Street, Oder-Center, Germany and One Steuart Lane.

- 28 -


		UNCONSOLIDATED JOINT VENTURES - OPERATING RESULTS

(unaudited and in thousands)

		Three Months Ended June 30, 2021
					712 Fifth			Market			55 Second			111 Sutter
		Total			Avenue			Center			Street			Street			Other ⁽¹⁾
Total revenues		$	57,776		$	9,811		$	13,641		$	8,178		$	3,594		$	22,552
Total operating expenses			25,467			5,691			6,436			3,398			1,694			8,248
Net operating income ⁽²⁾			32,309			4,120			7,205			4,780			1,900			14,304
Depreciation and amortization			(27,014	)		(2,687	)		(8,156	)		(4,815	)		(1,763	)		(9,593	)
Interest and other (loss) income, net			(23	)		2			(8	)		(10	)		(3	)		(4	)
Interest and debt expense			(13,892	)		(2,707	)		(3,384	)		(1,856	)		(1,561	)		(4,384	)
Net (loss) income before income taxes			(8,620	)		(1,272	)		(4,343	)		(1,901	)		(1,427	)		323
Income tax expense			1			-			-			1			-			-
Net (loss) income		$	(8,619	)	$	(1,272	)	$	(4,343	)	$	(1,900	)	$	(1,427	)	$	323

PGRE's share
Ownership		Total			50.0%			67.0%			44.1%			49.0%			Various
	Net loss	$	(5,183	)	$	(636	)	$	(2,914	)	$	(845	)	$	(699	)	$	(89	)
	Less: Step-up basis adjustment		(42	)		-			-			(2	)		-			(40	)
	Less: Adjustments to equity in earnings for (contributions to) distributions from an unconsolidated joint venture		(10,492	)		(10,492	)		-			-			-			-
	PGRE's share of net loss		(15,717	)		(11,128	)		(2,914	)		(847	)		(699	)		(129	)
	Add: Real estate depreciation and amortization		10,339			1,344			5,465			2,121			864			545
	FFO ⁽²⁾		(5,378	)		(9,784	)		2,551			1,274			165			416
	Add: Adjustments to equity in earnings for contributions to (distributions from) an unconsolidated joint venture		10,492			10,492			-			-			-			-
	Core FFO⁽²⁾	$	5,114		$	708		$	2,551		$	1,274		$	165		$	416

Joint Venture Partners' share
Ownership		Total			50.0%			33.0%			55.9%			51.0%			Various
	Net (loss) income	$	(3,436	)	$	(636	)	$	(1,429	)	$	(1,055	)	$	(728	)	$	412
	Add: Real estate depreciation and amortization		16,717			1,343			2,691			2,696			899			9,088
	FFO/Core FFO ⁽²⁾	$	13,281		$	707		$	1,262		$	1,641		$	171		$	9,500

⁽¹⁾	Represents 60 Wall Street, 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)

		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: Adjustments to equity in earnings for distributions from an unconsolidated joint venture		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: Adjustments to equity in earnings for distributions from an unconsolidated joint venture		(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 Street, 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, 2021
					712 Fifth			Market			55 Second			111 Sutter
		Total			Avenue			Center			Street			Street			Other ⁽¹⁾
Total revenues		$	115,061		$	19,951		$	25,955		$	16,436		$	7,920		$	44,799
Total operating expenses			50,577			11,571			12,877			6,354			3,407			16,368
Net operating income ⁽²⁾			64,484			8,380			13,078			10,082			4,513			28,431
Depreciation and amortization			(54,467	)		(5,455	)		(16,819	)		(9,628	)		(3,848	)		(18,717	)
Interest and other (loss) income, net			(56	)		1			(29	)		(13	)		(8	)		(7	)
Interest and debt expense			(27,632	)		(5,352	)		(6,731	)		(3,713	)		(3,080	)		(8,756	)
Net (loss) income before income taxes			(17,671	)		(2,426	)		(10,501	)		(3,272	)		(2,423	)		951
Income tax expense			(15	)		-			(3	)		(7	)		(3	)		(2	)
Net (loss) income		$	(17,686	)	$	(2,426	)	$	(10,504	)	$	(3,279	)	$	(2,426	)	$	949

PGRE's share
Ownership		Total			50.0%			67.0%			44.1%			49.0%			Various
	Net loss	$	(11,034	)	$	(1,213	)	$	(7,044	)	$	(1,465	)	$	(1,189	)	$	(123	)
	Less: Step-up basis adjustment		(84	)		-			-			(4	)		-			(80	)
	Less: Adjustments to equity in earnings for (contributions to) distributions from an unconsolidated joint venture		(9,915	)		(9,915	)		-			-			-			-
	PGRE's share of net loss		(21,033	)		(11,128	)		(7,044	)		(1,469	)		(1,189	)		(203	)
	Add: Real estate depreciation and amortization		21,175			2,728			11,269			4,245			1,886			1,047
	FFO ⁽²⁾		142			(8,400	)		4,225			2,776			697			844
	Add: Adjustments to equity in earnings for contributions to (distributions from) an unconsolidated joint venture		9,915			9,915			-			-			-			-
	Core FFO⁽²⁾	$	10,057		$	1,515		$	4,225		$	2,776		$	697		$	844

Joint Venture Partners' share
Ownership		Total			50.0%			33.0%			55.9%			51.0%			Various
	Net (loss) income	$	(6,652	)	$	(1,213	)	$	(3,460	)	$	(1,814	)	$	(1,237	)	$	1,072
	Add: Real estate depreciation and amortization		33,376			2,727			5,550			5,387			1,962			17,750
	FFO/Core FFO ⁽²⁾	$	26,724		$	1,514		$	2,090		$	3,573		$	725		$	18,822

⁽¹⁾	Represents 60 Wall Street, Oder-Center, Germany and One Steuart Lane.
⁽²⁾	See page 47 for our definition of these measures.

- 31 -


		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: Adjustments to equity in earnings for distributions from an unconsolidated joint venture		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: Adjustments to equity in earnings for distributions from an unconsolidated joint venture		(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 Street, Oder-Center, Germany and One Steuart Lane.
⁽²⁾	See page 47 for our definition of these measures.

- 32 -


		CAPITAL STRUCTURE

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

			As of June 30, 2021
Debt:
	Consolidated debt:
		Notes and mortgages payable ⁽¹⁾	$	3,831,864
		$1.0 billion Revolving Credit Facility		-
				3,831,864
	Less:
		Noncontrolling interests' share of consolidated debt ⁽²⁾		(799,217	)
	Add:
		PGRE's share of unconsolidated joint venture debt ⁽³⁾		611,320
	PGRE's Share of Total Debt ⁽⁴⁾			3,643,967

		Shares / Units		Share Price as of
Equity:		Outstanding		June 30, 2021
	Common stock		218,961,870	$	10.07		2,204,946
	Operating Partnership units		21,799,022		10.07		219,516
	Total equity		240,760,892		10.07		2,424,462


Total Market Capitalization						$	6,068,429

⁽¹⁾	Represents contractual amounts due pursuant to the respective debt agreements.
⁽²⁾	Represents noncontrolling interests' share of debt of 1633 Broadway, One Market Plaza and 300 Mission Street.
⁽³⁾	Represents our share of debt 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.

- 33 -

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			2.59	%		500,000			3.05	%		350,000			1.93	%
	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		256,864			3.65	%		256,864			3.65	%		-			-
	Revolving Credit Facility		-			-			-			-			-			-
Total consolidated debt			3,831,864			3.32	%		3,481,864			3.46	%		350,000			1.93	%
Noncontrolling interests' share			(799,217	)		3.78	%		(799,217	)		3.78	%		-			-
PGRE's share of consolidated debt		$	3,032,647			3.19	%	$	2,682,647			3.36	%	$	350,000			1.93	%

Unconsolidated Joint Venture Debt:
	712 Fifth Avenue	$	300,000			3.39	%	$	300,000			3.39	%	$	-			-
	Market Center		408,505			3.05	%		402,000			3.07	%		6,505			1.59	%
	55 Second Street		187,500			3.88	%		187,500			3.88	%		-			-
	111 Sutter Street		151,954			3.65	%		-			-			151,954			3.65	%
	60 Wall Street		575,000			2.52	%		-			-			575,000			2.52	%
	Oder-Center, Germany		17,765			4.62	%		17,765			4.62	%		-			-
Total unconsolidated debt			1,640,724			3.09	%		907,265			3.37	%		733,459			2.75	%
Joint venture partners' share			(1,029,404	)		2.97	%		(403,568	)		3.46	%		(625,836	)		2.66	%
PGRE's share of unconsolidated debt		$	611,320			3.30	%	$	503,697			3.30	%	$	107,623			3.27	%

PGRE's share of Total Debt ⁽¹⁾		$	3,643,967			3.21	%	$	3,186,344			3.35	%	$	457,623			2.24	%

Revolving Credit Facility Covenants: ⁽²⁾		Required	Actual			Debt Composition (at PGRE's share):		Amount		%
	Total Debt / Total Assets	Less than 60%		40.7	%	Fixed rate debt:
	Secured Debt / Total Assets	Less than 50%		43.4	%		Consolidated fixed rate debt	$	2,682,647
	Fixed Charge Coverage	Greater than 1.5x	3.49x				Unconsolidated fixed rate debt		503,697
	Unsecured Debt / Unencumbered Assets	Less than 60%		0.0	%		PGRE's share of fixed rate debt		3,186,344		87.4	%
	Unencumbered Interest Coverage	Greater than 1.75x	37.45x			Variable rate debt:
							Consolidated variable rate debt		350,000
							Unconsolidated variable rate debt		107,623
							PGRE's share of variable rate debt		457,623		12.6	%

							PGRE's share of Total Debt ⁽¹⁾	$	3,643,967		100.0	%

⁽¹⁾

See page 47 for our definition of this measure.

⁽²⁾

This section presents ratios as of June 30, 2021 in accordance with the terms of our revolving credit facility agreement, 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.

- 34 -

DEBT MATURITIES

(unaudited and in thousands)

Consolidated Debt:		2021				2022			2023			2024			2025			Thereafter			Total
	1301 Avenue of the Americas	$	850,000		⁽¹⁾	$	-		$	-		$	-		$	-		$	-		$	850,000
	300 Mission Street		-				-			256,864			-			-			-			256,864
	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		-				-			-			-			-			-			-
Total consolidated debt			850,000				-			256,864			975,000			-			1,750,000			3,831,864
Noncontrolling interests' share			-				-			(176,979	)		(497,250	)		-			(124,988	)		(799,217	)
PGRE's share of consolidated debt		$	850,000			$	-		$	79,885		$	477,750		$	-		$	1,625,012		$	3,032,647


Unconsolidated Joint Venture Debt:
	60 Wall Street	$	-			$	575,000		$	-		$	-		$	-		$	-		$	575,000
	Oder-Center, Germany		-				17,765			-			-			-			-			17,765
	111 Sutter Street		-				-			151,954			-			-			-			151,954
	Market Center		-				-			-			-			408,505			-			408,505
	712 Fifth Avenue		-				-			-			-			-			300,000			300,000
	55 Second Street		-				-			-			-			-			187,500			187,500
Total unconsolidated debt			-				592,765			151,954			-			408,505			487,500			1,640,724
Joint venture partners' share			-				(562,269	)		(77,497	)		-			(134,807	)		(254,831	)		(1,029,404	)
PGRE's share of unconsolidated debt		$	-			$	30,496		$	74,457		$	-		$	273,698		$	232,669		$	611,320



PGRE's Share of Total Debt ⁽²⁾		$	850,000			$	30,496		$	154,342		$	477,750		$	273,698		$	1,857,681		$	3,643,967

Weighted average rate			2.59	%			2.64	%		3.65	%		4.03	%		3.05	%		3.28	%		3.21	%

% of debt maturing			23.3	%			0.9	%		4.2	%		13.1	%		7.5	%		51.0	%		100.0	%

⁽¹⁾	This debt matures in November 2021. We are currently exploring various alternatives to refinance this debt.
⁽²⁾	See page 47 for our definition of this measure.

- 35 -




		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, 2021
New York:
1633 Broadway	West Side		90.0	%		1		2,499,105		98.3	%		98.3	%	$	187,683	$	79.08
1301 Avenue of the Americas	Sixth Avenue / Rock Center		100.0	%		1		1,758,818		71.5	%		71.1	%		108,150		86.63
1325 Avenue of the Americas	Sixth Avenue / Rock Center		100.0	%		1		812,043		90.7	%		90.7	%		48,565		67.22
31 West 52nd Street	Sixth Avenue / Rock Center		100.0	%		1		766,604		92.3	%		81.7	%		60,666		93.77
900 Third Avenue	East Side		100.0	%		1		591,463		78.4	%		76.8	%		32,890		72.46
712 Fifth Avenue	Madison / Fifth Avenue		50.0	%		1		543,411		69.0	%		63.9	%		41,110		118.31
60 Wall Street	Downtown		5.0	%		1		1,625,483		100.0	%		100.0	%		73,600		45.28	⁽³⁾
Subtotal / Weighted average						7		8,596,927		88.7	%		87.2	%		552,664		82.90	⁽⁴⁾
PGRE's share						7		6,531,290		86.5	%		84.7	%		443,430		81.89	⁽⁴⁾

San Francisco:
One Market Plaza	South Financial District		49.0	%		2		1,603,617		93.3	%		93.3	%		149,351		99.66
Market Center	South Financial District		67.0	%		2		743,709		84.7	%		83.9	%		54,975		87.95
300 Mission Street	South Financial District		31.1	%		1		660,702		99.1	%		99.1	%		56,154		85.96
One Front Street	North Financial District		100.0	%		1		644,555		99.9	%		98.8	%		54,364		85.45
55 Second Street	South Financial District		44.1	%		1		376,669		96.3	%		96.3	%		29,202		80.54
111 Sutter Street	North Financial District		49.0	%		1		277,724		59.4	%		59.4	%		13,164		80.95
Subtotal / Weighted average						8		4,306,976		91.8	%		91.5	%		357,210		90.70
PGRE's share						8		2,436,286		92.1	%		91.6	%		201,172		90.13

Total / Weighted average						15		12,903,903		89.7	%		88.6	%	$	909,874	$	86.11	⁽⁴⁾
PGRE's share						15		8,967,576		88.0	%		86.6	%	$	644,602	$	84.35	⁽⁴⁾

⁽¹⁾	See page 47 for our definition of this measure.
⁽²⁾	Represents office and retail space only.
⁽³⁾	Represents "triple-net" rent.
⁽⁴⁾	Excludes 60 Wall Street.

- 36 -


		SAME STORE LEASED OCCUPANCY

(unaudited)

				As of June 30, 2021						As of March 31, 2021						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	%		98.3	%		98.3	%		98.3	%		98.3	%		-	%
1301 Avenue of the Americas		100.0	%		71.5	%		71.5	%		71.1	%		71.1	%		0.4	%
1325 Avenue of the Americas		100.0	%		90.7	%		90.7	%		91.3	%		91.3	%		(0.6	%)
31 West 52nd Street		100.0	%		92.3	%		92.3	%		99.3	%		99.3	%		(7.0	%)	⁽²⁾
900 Third Avenue		100.0	%		78.4	%		78.4	%		79.7	%		79.7	%		(1.3	%)
712 Fifth Avenue		50.0	%		69.0	%		69.0	%		69.0	%		69.0	%		-	%
60 Wall Street		5.0	%		100.0	%		100.0	%		100.0	%		100.0	%		-	%
Weighted average					88.7	%		88.7	%		89.4	%		89.4	%		(0.7	%)	⁽²⁾
PGRE's share					86.5	%		86.5	%		87.3	%		87.3	%		(0.8	%)	⁽²⁾

San Francisco:
One Market Plaza		49.0	%		93.3	%		93.3	%		93.3	%		93.3	%		-	%
Market Center		67.0	%		84.7	%		84.7	%		84.3	%		84.3	%		0.4	%
300 Mission Street		31.1	%		99.1	%		99.1	%		99.1	%		99.1	%		-	%
One Front Street		100.0	%		99.9	%		99.9	%		99.9	%		99.9	%		-	%
55 Second Street		44.1	%		96.3	%		96.3	%		96.3	%		96.3	%		-	%
111 Sutter Street		49.0	%		59.4	%		59.4	%		59.4	%		59.4	%		-	%
Weighted average					91.8	%		91.8	%		91.7	%		91.7	%		0.1	%
PGRE's share					92.1	%		92.1	%		92.0	%		92.0	%		0.1	%

Weighted average					89.7	%		89.7	%		90.1	%		90.1	%		(0.4	%)	⁽²⁾
PGRE's share					88.0	%		88.0	%		88.6	%		88.6	%		(0.6	%)	⁽²⁾

⁽¹⁾	See page 47 for our definition of this measure.
⁽²⁾	Primarily due to the May 1, 2021 expiration of TD Bank's 131,300 square foot lease at 31 West 52nd street.

- 37 -


		SAME STORE LEASED OCCUPANCY

(unaudited)

				As of June 30, 2021						As of December 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	%		98.3	%		98.3	%		98.3	%		98.3	%		-	%
1301 Avenue of the Americas		100.0	%		71.5	%		71.5	%		99.0	%		99.0	%		(27.5	%)	⁽²⁾
1325 Avenue of the Americas		100.0	%		90.7	%		90.7	%		91.8	%		91.8	%		(1.1	%)
31 West 52nd Street		100.0	%		92.3	%		92.3	%		99.3	%		99.3	%		(7.0	%)	⁽²⁾
900 Third Avenue		100.0	%		78.4	%		78.4	%		80.6	%		80.6	%		(2.2	%)
712 Fifth Avenue		50.0	%		69.0	%		69.0	%		70.8	%		70.8	%		(1.8	%)
60 Wall Street		5.0	%		100.0	%		100.0	%		100.0	%		100.0	%		-	%
Weighted average					88.7	%		88.7	%		95.3	%		95.3	%		(6.6	%)	⁽²⁾
PGRE's share					86.5	%		86.5	%		95.1	%		95.1	%		(8.6	%)	⁽²⁾

San Francisco:
One Market Plaza		49.0	%		93.3	%		93.3	%		97.5	%		97.5	%		(4.2	%)
Market Center		67.0	%		84.7	%		84.7	%		90.2	%		90.2	%		(5.5	%)
300 Mission Street		31.1	%		99.1	%		99.1	%		99.1	%		99.1	%		-	%
One Front Street		100.0	%		99.9	%		99.9	%		100.0	%		100.0	%		(0.1	%)
55 Second Street		44.1	%		96.3	%		96.3	%		95.7	%		95.7	%		0.6	%
111 Sutter Street		49.0	%		59.4	%		59.4	%		79.6	%		79.6	%		(20.2	%)
Weighted average					91.8	%		91.8	%		95.6	%		95.6	%		(3.8	%)
PGRE's share					92.1	%		92.1	%		95.7	%		95.7	%		(3.6	%)

Weighted average					89.7	%		89.7	%		95.4	%		95.4	%		(5.7	%)	⁽²⁾
PGRE's share					88.0	%		88.0	%		95.2	%		95.2	%		(7.2	%)	⁽²⁾

⁽¹⁾	See page 47 for our definition of this measure.
⁽²⁾	Primarily due to the January 1, 2021 expiration of Barclays' 497,500 square foot lease at 1301 Avenue of the Americas and May 1, 2021 expiration of TD Bank's 131,300 square foot lease at 31 West 52nd Street.

- 38 -



		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, 2021
	First Republic Bank		One Front Street	Jun-2025	⁽²⁾		350,340	⁽²⁾		350,340	⁽²⁾		3.9	%		29,903		85.35		4.6	%
	Clifford Chance LLP		31 West 52nd Street	Jun-2024			328,992			328,992			3.7	%		28,873		87.76		4.5	%
	Allianz Global Investors, LP		1633 Broadway	Jan-2031			320,911			288,823			3.2	%		28,122		97.37		4.4	%
	Credit Agricole Corporate &
		Investment Bank	1301 Avenue of the Americas	Feb-2023			312,679			312,679			3.5	%		27,616		88.32		4.3	%
	Norton Rose Fulbright		1301 Avenue of the Americas	Sep-2034	⁽³⁾		320,325	⁽³⁾		320,325	⁽³⁾		3.6	%		27,304		85.24		4.2	%
	Morgan Stanley & Company		1633 Broadway	Mar-2032			260,829			234,749			2.6	%		18,140		77.27		2.8	%
	WMG Acquisition Corp.
		(Warner Music Group)	1633 Broadway	Jul-2029			293,888			264,502			2.9	%		17,648		66.72		2.7	%
	Showtime Networks, Inc.		1633 Broadway	Jan-2026			261,196			235,079			2.6	%		16,845		71.66		2.6	%
	Google, Inc.		One Market Plaza	Apr-2025			342,211			167,683			1.9	%		15,089		89.99		2.3	%
	Uber Technologies, Inc.		Market Center	Jul-2023			234,783			157,305			1.8	%		13,839		87.98		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, 2021
	Legal Services		1,734,851		22.3	%	$	147,439		22.9	%
	Technology and Media		1,712,737		22.1	%		136,480		21.2	%
	Financial Services, all others		1,229,154		15.8	%		112,706		17.5	%
	Financial Services - Commercial and Investment Banking		1,241,888		16.0	%		100,594		15.6	%
	Insurance		446,257		5.7	%		41,609		6.5	%
	Retail		129,545		1.7	%		13,930		2.2	%
	Travel & Leisure		192,856		2.5	%		13,788		2.1	%
	Real Estate		128,742		1.7	%		11,188		1.7	%
	Consumer Products		120,545		1.6	%		9,908		1.5	%
	Other		830,190		10.6	%		56,960		8.8	%

⁽¹⁾	See page 47 for our definition of this measure.
⁽²⁾	76,999 and 22,690 of the square feet leased expire on December 31, 2029 and December 31, 2030, respectively.
⁽³⁾	116,462 of the square feet leased expires on March 31, 2032.

- 39 -


		LEASING ACTIVITY ⁽¹⁾

(unaudited)

	Total			New York					San Francisco

Three Months Ended June 30, 2021

Total square feet leased		246,922			224,649		⁽²	⁾		22,273

PGRE's share of total square feet leased:		197,035			184,234					12,801
Initial rent ⁽³⁾	$	70.81		$	69.94				$	83.33
Weighted average lease term (in years)		9.3			9.6					5.1
Tenant improvements and leasing commissions:
Per square foot	$	99.43		$	104.70				$	23.63
Per square foot per annum	$	10.64		$	10.86				$	4.62
Percentage of initial rent		15.0	%		15.5	%				5.5	%
Rent concessions:
Average free rent period (in months)		12.7			13.3					4.8
Average free rent period per annum (in months)		1.4			1.4					0.9

Second generation space: ⁽³⁾
Square feet		156,117			147,216					8,901
Cash basis:
Initial rent ⁽³⁾	$	74.27		$	73.64				$	84.78
Prior escalated rent ⁽³⁾	$	75.35		$	74.45				$	90.23
Percentage decrease		(1.4	%)		(1.1	%)				(6.0	%)
GAAP basis:
Straight-line rent ⁽³⁾	$	70.03		$	69.27				$	82.61
Prior straight-line rent ⁽³⁾	$	73.86		$	72.82				$	91.04
Percentage decrease		(5.2	%)		(4.9	%)				(9.3	%)

⁽¹⁾	The leasing statistics, except for square feet leased, represent office space only.
⁽²⁾	Includes 34,570 square feet that was leased to the Thespian Theatre for a 15-year term that is excluded from our share of total square feet leased and the related leasing statistics.
⁽³⁾	See page 47 for our definition of this measure.

- 40 -


		LEASING ACTIVITY ⁽¹⁾

(unaudited)

	Total			New York					San Francisco

Six Months Ended June 30, 2021

Total square feet leased		435,563			380,605		⁽²	⁾		54,958

PGRE's share of total square feet leased:		216,690			184,234					32,456
Initial rent ⁽³⁾	$	71.29		$	69.94				$	78.94
Weighted average lease term (in years)		8.9			9.6					4.4
Tenant improvements and leasing commissions:
Per square foot	$	91.89		$	104.70				$	19.18
Per square foot per annum	$	10.38		$	10.86				$	4.38
Percentage of initial rent		14.6	%		15.5	%				5.5	%
Rent concessions:
Average free rent period (in months)		11.8			13.3					3.1
Average free rent period per annum (in months)		1.3			1.4					0.7

Second generation space: ⁽³⁾
Square feet		174,328			147,216					27,112
Cash basis:
Initial rent ⁽³⁾	$	74.42		$	73.64				$	78.68
Prior escalated rent ⁽³⁾	$	76.13		$	74.45				$	85.25
Percentage decrease		(2.2	%)		(1.1	%)				(7.7	%)
GAAP basis:
Straight-line rent ⁽³⁾	$	71.09		$	69.27				$	81.01
Prior straight-line rent ⁽³⁾	$	76.11		$	72.82				$	94.00
Percentage decrease		(6.6	%)		(4.9	%)				(13.8	%)

⁽¹⁾	The leasing statistics, except for square feet leased, represent office space only.
⁽²⁾	Includes an aggregate of 190,526 square feet of theatre space that was leased at 1633 Broadway for a weighted average term of 19 years that is excluded from our pro rata share of total square feet leased and the related statistics.
⁽³⁾	See page 47 for our definition of this measure.

- 41 -



		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		19,654		12,449	$	1,075	$	61.97		0.2	%

	3Q 2021		77,049		50,810		4,102		82.17		0.6	%
	4Q 2021		56,120		43,544		2,989		69.11		0.5	%
	Total 2021		133,169		94,354		7,091		76.07		1.1	%

	1Q 2022		275,677		137,393		12,247		89.30		1.9	%
	2Q 2022		1,697,179		117,388		6,955		58.80		1.1	%
	Remaining 2022		140,006		79,623		8,296		103.12		1.2	%
	Total 2022		2,112,862		334,404		27,498		81.81		4.2	%
	2023		917,675		766,527		62,632		84.61		9.5	%
	2024		796,277		706,035		59,970		85.00		9.1	%
	2025		1,383,529		873,007		74,715		85.52		11.3	%
	2026		1,438,012		1,008,287		86,055		83.26		13.0	%
	2027		245,440		182,327		16,112		88.33		2.4	%
	2028		261,863		213,296		17,772		83.81		2.7	%
	2029		584,074		519,091		40,591		78.61		6.1	%
	2030		607,964		511,483		45,098		88.21		6.8	%
	Thereafter		3,077,423		2,670,129		221,758		85.80		33.6	%

⁽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 – 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	$	551	$	68.50		0.1	%

	3Q 2021		24,002		19,004		1,322		70.55		0.2	%
	4Q 2021		56,120		43,544		2,989		69.11		0.7	%
	Total 2021		80,122		62,548		4,311		69.54		0.9	%

	1Q 2022		52,385		45,306		4,369		96.44		1.0	%
	2Q 2022		1,632,001		84,689		4,154		48.56		0.9	%
	Remaining 2022		29,757		18,936		2,034		103.57		0.4	%
	Total 2022		1,714,143		148,931		10,557		70.03		2.3	%
	2023		535,677		522,092		40,512		81.41		8.9	%
	2024		588,468		571,624		47,727		83.61		10.5	%
	2025		299,107		241,876		21,617		89.34		4.7	%
	2026		727,381		668,831		53,845		77.35		11.8	%
	2027		128,111		122,587		10,447		85.22		2.3	%
	2028		147,554		127,134		10,503		83.21		2.3	%
	2029		537,064		494,320		38,527		78.37		8.5	%
	2030		403,756		393,040		33,732		85.87		7.4	%
	Thereafter		2,458,561		2,290,224		183,034		82.94		40.3	%

⁽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 – 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		14,915		8,218	$	524	$	56.93		0.3	%

	3Q 2021		53,047		31,806		2,780		88.97		1.4	%
	4Q 2021		-		-		-		-		-	%
	Total 2021		53,047		31,806		2,780		88.97		1.4	%

	1Q 2022		223,292		92,087		7,878		85.72		3.8	%
	2Q 2022		65,178		32,699		2,801		85.33		1.4	%
	Remaining 2022		110,249		60,687		6,262		102.98		3.1	%
	Total 2022		398,719		185,473		16,941		91.35		8.3	%
	2023		381,998		244,435		22,120		90.37		10.8	%
	2024		207,809		134,411		12,243		90.97		6.0	%
	2025		1,084,422		631,131		53,098		84.05		25.9	%
	2026		710,631		339,456		32,210		94.78		15.7	%
	2027		117,329		59,740		5,665		94.73		2.8	%
	2028		114,309		86,162		7,269		84.70		3.5	%
	2029		47,010		24,771		2,064		83.33		1.0	%
	2030		204,208		118,443		11,366		95.96		5.5	%
	Thereafter		618,862		379,905		38,724		101.96		18.8	%

⁽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.

- 44 -

CASH BASIS CAPITAL EXPENDITURES

(unaudited and in thousands)

	Three Months Ended June 30, 2021
	Total		New York		San Francisco		Other
Capital Expenditures: ⁽¹⁾
Expenditures to maintain assets	$	4,175	$	2,534	$	1,616	$	25
Second generation tenant improvements		16,097		1,521		14,576		-
Second generation leasing commissions		4,738		2,606		2,132		-
First generation leasing costs and capital expenditures		-		-		-		-
Total Capital Expenditures	$	25,010	$	6,661	$	18,324	$	25

Redevelopment Expenditures: ⁽¹⁾
Gershwin Facade Replacement	$	5,172	$	5,172	$	-	$	-
Lobby Renovations		1,790		1,619		171		-
Elevator Modernizations		4,460		2,036		2,424		-
Other		670		670		-		-
Total Redevelopment Expenditures	$	12,092	$	9,497	$	2,595	$	-


	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⁾
Lobby Renovations	$	2,685	$	879	$	1,806	$	-
Elevator Modernizations		1,124		463		661		-
Other		730		182		548		-
Total Redevelopment Expenditures	$	4,539	$	1,524	$	3,015	$	-

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

- 45 -

CASH BASIS CAPITAL EXPENDITURES

(unaudited and in thousands)

	Six Months Ended June 30, 2021
	Total		New York		San Francisco		Other
Capital Expenditures: ⁽¹⁾
Expenditures to maintain assets	$	6,131	$	3,575	$	2,520	$	36
Second generation tenant improvements		23,602		2,906		20,696		-
Second generation leasing commissions		5,474		3,129		2,345		-
First generation leasing costs and capital expenditures		-		-		-		-
Total Capital Expenditures	$	35,207	$	9,610	$	25,561	$	36

Redevelopment Expenditures: ⁽¹⁾
Gershwin Facade Replacement	$	7,234	$	7,234	$	-	$	-
Lobby Renovations		4,469		2,668		1,801		-
Elevator Modernizations		8,661		5,645		3,016		-
Other		1,191		1,068		123		-
Total Redevelopment Expenditures	$	21,555	$	16,615	$	4,940	$	-


	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⁾
Lobby Renovations	$	5,283	$	2,073	$	3,210	$	-
Elevator Modernizations		2,859		919		1,940		-
Other		1,399		703		696		-
Total Redevelopment Expenditures	$	9,541	$	3,695	$	5,846	$	-

⁽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. Redevelopment 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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