34 slides from Paramount Corp. Bhd's investor presentation, July 2024
Slide 1: Investor Presentation July 2024
INVESTOR PRESENTATION JULY 2024
Slide 2: 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” and similar expressions that do not relate to h
Slide 3: Table of Contents
Table of Contents 1 Introduction to Paramount 2 Portfolio Composition 3 Balance Sheet & Capital Structure 4 Paramount Club 5 ESG Strategy 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: PGRE 1978 13.8 MM SQUARE FEET NYSE-LISTED COMPANY FOUNDED IN (across 18 assets) (1) ~$8.1 B (2) $336 MM (3) 86.3% TOTAL AUM CAS
Slide 5: Modern and Well Amenitized High-quality Properties, Commanding Premium Rents
Modern and Well Amenitized High-quality Properties, Commanding Premium Rents 95% Exposure to Trophy and Class A office rent revenues with limited retail exposure 6.7 years Average lease term for office leases New York – 7.8 years San Francisco – 3.6 years $89/sqft Annualized rent 5
Slide 6: High Credit Quality Tenant Base
High Credit Quality Tenant Base PGRE's Share of Square Feet % of Ann. (1) (2) Top 10 Tenants Expiration Date Occupied Rent (3) (3) 1. Various 344,010 5.1% Industr y Diversification – % 2. 1/2031 288,823 4.7% o f A n n u a l i z e d R e n t (2) (4) (4) 3. 9/2034 290,875 4.5% Other Professional Servic
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: Portfolio Composition
1 Introduction to Paramount 2 Portfolio Composition 3 Balance Sheet & Capital Structure 4 Paramount Club 5 ESG Strategy 6 Appendix 8
Slide 9: 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 8 2.5MM 0.6MM 5 sq. ft. sq. ft. 94.4% 69.0% leased leased New York 25% of G A V (2) 4% of G A V (2) 2 1301 Avenue of 6 712 Fifth 8.7MM Square Feet the Americas Avenue 1.8MM 0.6M
Slide 10: 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 San Francisco 1.6MM sq. ft. 0.7MM sq. ft. 91.0% 81.4% leased leased 4.3MM Square Feet 11% of G A V (2) 2% of G A V (2) 84.2% SS Leased (1)(3) 2 One Front 4 55 Second 29% of GAV
Slide 11: Fund & Managed Assets
Fund & Managed Assets 1 718 Fifth 4 CNBB Fund & Managed Avenue 19K sq. ft. 225K sq. ft. Assets New York Washington, D.C. 0.8MM Square Feet 2 745 Fifth Avenue 535K sq. ft. New York 3 700 Eighth Avenue 26K sq. ft. New York 11
Slide 12: Lease Expirations – Total Portfolio
Lease Expirations – Total Portfolio PGRE's Share of Sq. Ft. of Expiring Leases – Total Portfolio 5000 4,725ksf 4500 4000 3500 3000 2500 63.3% 2000 5-Year Average: 608ksf or 8.1% per annum 1500 1,014ksf 1,016ksf 1000 500 13.6% 13.6% 194ksf 246ksf 265ksf 2.6% 3.3% 3.6% 0 2024 2025 2026 2027 2028 There
Slide 13: Lease Expirations – by Business Segment
Lease Expirations – by Business Segment 4,500 PGRE's Share of Sq. Ft. of Expiring Leases - New York 4,218ksf Key Upcoming Roll 4,000 (> 50k square feet at PGRE’s share) 3,500 3,000 2024 Leerink Partners (70ksf) 2,500 74.9% 2,000 1,500 5-Year Average: 315ksf 2025 or 5.6% per annum Charter Communicati
Slide 14: Balance Sheet & Capital Structure
1 Introduction to Paramount 2 Portfolio Composition 3 Balance Sheet & Capital Structure 4 Paramount Club 5 ESG Strategy 6 Appendix 14
Slide 15: Capital Structure Overview
Capital Structure Overview Capital Structure Liquidity ($ in Millions) (4)(5) (in thousands, except per share amounts) At Green Street $1,159.4 (1) NAV $409.4 Stock Price $7.00 Common Shares 217,455 Operating Partnership Units 20,103 Total Shares / Units Outstanding 237,558 $750.0 Equity Market Capi
Slide 16: Debt Maturity Schedule – As of 6/30/2024 (at share)
Debt Maturity Schedule – As of 6/30/2024 (at share) $1,600 $1,514.9MM Weighted Average Maturity – 3.1 years 55 Second Weighted Average Maturity (excl. non-core assets) – 3.4 years $1,400 300 Mission $1,200 $1,163.4MM 1600 Broadway 31 West 52nd 60 Wall $1,000 $800 $566.5MM $600 1633 Broadway 712 5th
Slide 17: Paramount Club
1 Introduction to Paramount 2 Portfolio Composition 3 Balance Sheet & Capital Structure 4 Paramount Club 5 ESG Strategy 6 Appendix 17
Slide 18: Introducing Paramount Club
Introducing Paramount Club PA R A M O U N T C LU B Welcome to a new era of business. One where the bounda ries between work a nd inspiration blur. W here innovation is met with integ rity a nd a mbitions a re ignited. W here intellectua l excha nge is the cur rency a nd ca ma raderie is the dividend
Slide 19: Paramount Club Transcends Traditional Amenities
Paramount Club Transcends Traditional Amenities C O N C E N T R AT E & C O L L A B O R AT E Pr ior iti ze productivity a nd forge mea ni ng fu l connections. We ha ve a ra nge of flexible options to su it you r i nd ividua l schedu le a nd style of work: AU D I TORIUM B US INESS LOUNGE TR A I NI NG
Slide 20: Excellence Has an Address
Excellence Has an Address DESTINATI ON COMMUNITY Pa ra mount C lub is a destination that Pa ra mount C lub is a dy na mic brings together a dy na mic community of community of a ccomplished a ccomplished professiona ls. professiona ls who pursue excellence in a ll dimensions. 20
Slide 21: Paramount Club in Depth
Paramount Club in Depth Paramount Club is a dynamic community of accomplished professionals. Loca ted in the hea r t of M idtown M a nha tta n, a t 6th Ave a nd 52nd S treet, we offer 32,0 0 0S F of exper tly a ppointed dining, wellness, conferencing, a nd enter ta inment exper iences to su it their
Slide 22: ESG Strategy
1 Introduction to Paramount 2 Portfolio Composition 3 Balance Sheet & Capital Structure 4 Paramount Club 5 ESG Strategy 6 Appendix 22
Slide 23: ESG Commitment
ESG Commitment • Paramount continues to be an industry leader in ESG initiatives. Success in this space has helped us: • Manage operating costs, • Attract and retain premium tenants, and ultimately • Enhance portfolio value. • Pursuing ESG strategies has positioned us, our partners, and our investor
Slide 24: ESG Oversight & Integration
ESG Oversight & Integration • Our Board of Directors vested the Audit Committee with oversight over Environmental and Social matters. Oversight for Governance resides with the Nominating & Corporate Governance Committee. • Sustainability Committee has been created to implement the Company’s ESG goal
Slide 25: Sustainability from Coast to Coast
Sustainability from Coast to Coast 25
Slide 26: ESG Highlights
ESG Highlights Note: Slide reflects Office REIT Portfolio 26
Slide 27: ESG Frameworks – History of Improvements
ESG Frameworks – History of Improvements Framework Scoring A-F Y/N 1-5 Stars AAA-CCC Y/N Y/N 1-100 Y/N No 2019 N 5 Stars BB Y N 9 N Response 2020 C N 5 Stars BB Y N 12 N 2021 B- Y 5 Stars BB Y N 21 N 2022 B Y 5 Stars BB Y Y 40 Y 2023 B Y 5 Stars BBB Y Y 44 Y Key Green: improvement Gold: maintenance
Slide 28: Appendix
1 Introduction to Paramount 2 Portfolio Composition 3 Balance Sheet & Capital Structure 4 Paramount Club 5 ESG Strategy 6 Appendix 28
Slide 29: 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 Six Months Ended June 30, 2024 June 30, 2023 March 31, 2024 June 30, 2024 June 30, 2023 Reconciliation of net (loss) income to FFO and Core FFO : Net (loss) income $ (2,860) $
Slide 30: Reconciliation of Non-GAAP Measures – NOI
Reconciliation of Non-GAAP Measures NOI (unaudited and in thousands) Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 March 31, 2024 June 30, 2024 June 30, 2023 Reconciliation of net (loss) income to NOI and Cash NOI: Net (loss) income $ (2,860) $ (82,829) $ 16,731 $ 13,871 $ (74,515)
Slide 31: 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 June 30, 2024 Total New York San Francisco Other PGRE's share of Cash NOI for the three months ended June 30, 2024 $ 86,543 $ 58,084 $ 29,554 $ (1,095) Non-same store adjus
Slide 32: 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 June 30, 2024 Total New York San Francisco Other PGRE's share of NOI for the three months ended June 30, 2024 $ 90,636 $ 63,396 $ 28,158 $ (918) Non-same store adjustments: Lease ter
Slide 33: Appendix: Definitions
Appendix: Definitions Annualized Rent represents the end of period monthly base rent plus escalations in accordance with the lease terms, multiplied by 12. Funds from Operations (“FFO”) is a supplemental measure of our performance. FFO is presented in accordance with the definition adopted by the Na
Slide 34: Appendix: Definitions (Cont’d)
Appendix: Definitions (Cont’d) Adjusted EBITDAre is a supplemental measure that is calculated by adjusting EBITDAre to eliminate the impact of the performance of our real estate related funds, unrealized gains or losses on interest rate swaps, transaction related costs, gains or losses on early exti