29 slides from Paramount Corp. Bhd's earnings presentation, Feb 28, 2025
Slide 1: Paramount Group Investor Presentation
FEBRUARY Paramount Group 2025 Investor Presentation
Slide 2: Cautionary Note on Forward-Looking Statements
Cautionary Note on Forward-Looking Statements This presentation 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” a
Slide 3: Table of Contents
Table of Contents 1 Introduction to Paramount 2 Business Update 3 Portfolio Composition 4 Balance Sheet & Capital Structure 5 Environmental Sustainability Initiatives 6 Appendix 3
Slide 4: Paramount at a Glance
Paramount at a Glance Paramount prides itself on being a best-in-class owner and operator of high-quality, Class A office properties in New York and San Francisco. TICKER FOUNDED 84.8 % PGRE NYSE-listed company 1978 S A M E S T O R E L E A S E D (1) New York 85.0% San Francisco 83.8% ~$7.8 billion (
Slide 5: Modern and Well Amenitized High-Quality Office Properties, Commanding Premium Rents
Modern and Well Amenitized High-Quality Office Properties, Commanding Premium Rents $89/sqft Annualized rent (at PGRE’s share) 6.5 years Average lease term for office leases 95 % Exposure to Trophy and Class A office rent revenues with limited retail New York – 7.5 years exposure San Francisco – 3.5
Slide 6: High Credit Quality Tenant Base
High Credit Quality Tenant Base Industry Diversification – % of annualized rent (2) PGRE’s share of Square feet % of annual Top 10 tenants Expiration date occupied (1) rent (2) 1.7% 1.7% 8.7% Various(3) 344,010(3) 5.0% 1 2.0% 3.0% 23.0% 2 9/2034(4) 290,875(4) 4.7% 3 1/2031 288,823 4.7% 6.3% 4 Variou
Slide 7: Experienced and Diverse Management Team
Experienced and Diverse Management Team Executive Management Albert Behler Wilbur Paes Peter Brindley Gage Johnson Ermelinda Berberi Chairman, Chief Executive Chief Operating Officer, Chief Head of Real Estate General Counsel Chief Accounting Officer Officer & President Financial Officer & Treasurer
Slide 8: Business Update
1 Introduction to Paramount 2 Business Update 3 Portfolio Composition 4 Balance Sheet & Capital Structure 5 Environmental Sustainability Initiatives 6 Appendix 8
Slide 9: 2025 Key Guidance Assumptions
2025 Key Guidance Assumptions Leasing Activity Same Store Pool 800,000 – 1,000,000 square feet One Front Street (removed for redevelopment 7/1/25 ) Same Store Occupancy 83.9% – 85.9% leased Core FFO Composition 2025 2024 Cash NOI $1.27 $1.47 Same Store Cash NOI Growth S/L & FAS 141 0.04 0.08 (7.0%)
Slide 10: 2025 Core FFO Bridge
2025 Core FFO Bridge 0.82 $0.80 ($0.20)(1) 0.77 Lease expirations weighing on earnings 0.72 0.67 $0.03 ($0.01) ($0.02) 0.62 ($0.04) 0.57 ($0.01)(2) ($0.02) $0.01 $0.54 Cash NOI 0.52 0.47 0.42 2024 Significant Free Rent Burn- Termination Partial Sale of S/L Rent & Interest Interest and G&A 2025 Core
Slide 11: Lease Expirations – by Business Segment
Lease Expirations – by Business Segment 3500 3,850 ksf 3000 PGRE’s share of sq. ft. of expiring leases - New York Key upcoming roll (> 50k square feet at PGRE’s share) 2500 2025 2000 Charter Communications (96 ksf) Wilson Sonsini (61 ksf) 1500 5-Year Average: 332 ksf or 69.9% 1000 6.0% per annum 202
Slide 12: Lease Expirations – Total Portfolio
Lease Expirations – Total Portfolio 4500 PGRE’s share of sq. ft. of expiring leases 4,366 ksf 4000 3500 3000 2500 2000 5-Year Average: 590 ksf or 8.1% per annum 59.7% 1500 1,015 ksf 1000 863 ksf 497 ksf 500 13.9% 309 ksf 11.8% 264 ksf 6.8% 3.6% 4.2% 0 2025 2026 2027 2028 2029 Thereafter Represents l
Slide 13: Portfolio Composition
1 Introduction to Paramount 2 Business Update 3 Portfolio Composition 4 Balance Sheet & Capital Structure 5 Environmental Sustainability Initiatives 6 Appendix 13
Slide 14: Irreplaceable Portfolio of Class A/Trophy Assets: New York
Irreplaceable Portfolio of Class A/Trophy Assets: New York 4 1 1633 5 900 Third 1 2 6 Broadway Avenue(3) 3 8 • 2.5MM sq. ft. • 0.6MM sq. ft. 5 • 92.6% leased • 68.9% leased • 26% of GAV(2) • 4% of GAV(2) New York 2 1301 Avenue of the 6 712 Fifth Avenue Americas • 0.6MM sq. ft. 8.7 million square fee
Slide 15: Irreplaceable Portfolio of Class A/Trophy Assets: San Francisco
Irreplaceable Portfolio of Class A/Trophy Assets: San Francisco 1 One Market 3 300 Mission Plaza Street • 1.6MM sq. ft. • 0.7MM sq. ft. • 90.1% leased • 81.4% leased • 10% of GAV(2) • 2% of GAV(2) San Francisco 2 One Front Street 4 55 Second Street • 0.6MM sq. ft. • 0.4MM sq. ft. 4.3 million square
Slide 16: Fund & Managed Assets
Fund & Managed Assets 1 718 Fifth 3 700 Eighth Avenue Avenue • 19K sq. ft. • 26K sq. ft. • New York • New York 2 745 Fifth 4 CNBB Avenue • 225K sq. ft. • 535K sq. ft. • Washington, • New York D.C. Fund & Managed Assets 0.8 million square feet 16
Slide 17: Balance Sheet & Capital Structure
1 Introduction to Paramount 2 Business Update 3 Portfolio Composition 4 Balance Sheet & Capital Structure 5 Environmental Sustainability Initiatives 6 Appendix 17
Slide 18: Capital Structure Overview
Capital Structure Overview Capital Structure Proforma Liquidity ($ in millions)(5)(6) (in thousands, except per share amounts) At Green Street NAV (1) $746.5 Stock Price $6.50 Common Shares 217,528 $546.5 Operating Partnership Units 20,058 Total Shares / Units Outstanding 237,585 $200.0 Equity Marke
Slide 19: Debt Maturity Schedule – as of 12/31/2024
Debt Maturity Schedule – as of 12/31/2024 (at PGRE’s share) $1,600 $1,514.9MM Weighted Average Maturity – 2.6 years 55 Second, $82.7 Weighted Average Maturity (excl. non-core assets) – 2.9 years $1,400 300 Mission, $72.2 $1,155.7MM $1,200 60 Wall, $30.7 31 West 52nd $500.0 $1,000 $800 $600 $566.5MM
Slide 20: Environmental Sustainability Initiatives
1 Introduction to Paramount 2 Business Update 3 Portfolio Composition 4 Balance Sheet & Capital Structure 5 Environmental Sustainability Initiatives 6 Appendix 20
Slide 21: Environmental Sustainability Initiatives
Environmental Sustainability Initiatives Paramount continues to be an industry leader in environmental sustainability initiatives. Success in this space has helped us: • Manage operating costs, • Attract and retain premium tenants, and ultimately • Enhance portfolio value. Pursuing environmental sus
Slide 22: Environmental Sustainability Highlights
Environmental Sustainability Highlights 100% “A” Rating Highest score on GRESB LEED Platinum or Gold certified REIT Portfolio Public Disclosure assessment 100% 1 Decile Rank 2024 ENERGY STAR labeled REIT Portfolio Top performance and “Prime” rating for ISS ESG requirements 100% Fitwel rated REIT Por
Slide 23: Appendix
1 Introduction to Paramount 2 Business Update 3 Portfolio Composition 4 Balance Sheet & Capital Structure 5 Environmental Sustainability Initiatives 6 Appendix 23
Slide 24: Reconciliation of Non-GAAP Measures: FFO
Reconciliation of Non-GAAP Measures FFO (unaudited and in thousands, except share and per share amounts) Three Months Ended Year Ended December 31, 2024 December 31, 2023 September 30, 2024 December 31, 2024 December 31, 2023 Reconciliation of net loss to FFO and Core FFO: Net loss $ (48,062) $ (271
Slide 25: Reconciliation of Non-GAAP Measures: NOI
Reconciliation of Non-GAAP Measures NOI (unaudited and in thousands) Three Months Ended Year Ended December 31, 2024 December 31, 2023 September 30, 2024 December 31, 2024 December 31, 2023 Reconciliation of net loss to NOI and Cash NOI: Net loss $ (48,062) $ (271,727) $ (4,203) $ (38,394) $ (371,30
Slide 26: Reconciliation of Non-GAAP Measures: Same Store Cash NOI
Reconciliation of Non-GAAP Measures SAME STORE CASH NOI (unaudited and in thousands) SAME STORE CASH NOI (1) Three Months Ended December 31, 2024 Total New York San Francisco Other PGRE's share of Cash NOI for the three months ended December 31, 2024 $ 86,139 $ 58,816 $ 28,398 $ (1,075) Non-same sto
Slide 27: Reconciliation of Non-GAAP Measures: Same Store NOI
Reconciliation of Non-GAAP Measures SAME STORE NOI (unaudited and in thousands) SAME STORE NOI (1) Three Months Ended December 31, 2024 Total New York San Francisco Other PGRE's share of NOI for the three months ended December 31, 2024 $ 90,176 $ 65,263 $ 25,953 $ (1,040) Non-same store adjustments:
Slide 28: Appendix: Definitions
Appendix: Definitions Annualized Rent represents the end of period Core Funds from Operations (“Core FFO”) is an Net Operating Income (“NOI”) is used to measure monthly base rent plus escalations in accordance with alternative measure of our operating performance, the operating performance of our pr
Slide 29: Appendix: Definitions Continued
Appendix: Definitions C O N T I N U E D Adjusted EBITDAre is a supplemental measure that PGRE’s Share of Cash and Cash Equivalents and Same Store Leased % represents percentage of is calculated by adjusting EBITDAre to eliminate the Restricted Cash represents our share of cash and square feet that i