43 slides from Paramount Corp. Bhd's earnings presentation, May 4, 2023
Slide 1: Supplemental Operating and Financial Data
SUPPLEMENTAL OPERATING AND FINANCIAL DATA For the quarter ended MARCH 31, 2023
Slide 2: Forward-Looking Statements
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 simi
Slide 3: Table of Contents
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
Slide 4: Company Profile, Management and Board of Directors
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.
Slide 5: Research Coverage
RESEARCH COVERAGE (1) Camille Bonnel Thomas Catherwood Derek Johnston Bank of America Merrill Lynch BTIG Deutsche Bank (646) 855-5042 (212) 738-6140 (904) 520-4973 camille.bonnel@bofa.com tcatherwood@btig.com derek.johnston@db.com Steve Sakwa Dylan Burzinski Vikram Malhotra Evercore ISI Green Street
Slide 6: Guidance
GUIDANCE (unaudited and in thousands, except square feet, % and per share amounts) Full Year 2023 (Amounts per diluted share) Low High Estimated net loss attributable to common stockholders $ (0.11) $ (0.07) Our share of real estate depreciation and amortization 1.01 1.01 Estimated Core FFO (1)(2) $
Slide 7: Financial Highlights
FINANCIAL HIGHLIGHTS (unaudited and in thousands, except per share amounts) Three Months Ended SELECTED FINANCIAL DATA March 31, 2023 March 31, 2022 December 31, 2022 Net income (loss) attributable to common stockholders $ 1,729 $ 3,371 $ (37,877) Per share - basic and diluted $ 0.01 $ 0.02 $ (0.17)
Slide 8: Consolidated Balance Sheets
CONSOLIDATED BALANCE SHEETS (unaudited and in thousands) March 31, 2023 December 31, 2022 Assets: Real estate, at cost: Land $ 1,966,237 $ 1,966,237 Buildings and improvements 6,185,311 6,177,540 8,151,548 8,143,777 Accumulated depreciation and amortization (1,337,552) (1,297,553) Real estate, net 6
Slide 9: Consolidated Statements of Income
CONSOLIDATED STATEMENTS OF INCOME (unaudited and in thousands, except per share amounts) Three Months Ended March 31, 2023 March 31, 2022 December 31, 2022 Revenues: Rental revenue (1) $ 181,713 $ 169,922 $ 176,404 Fee and other income (1) 6,761 13,763 7,624 Total revenues 188,474 183,685 184,028 Ex
Slide 10: Select Income Statement Data
SELECT INCOME STATEMENT DATA (unaudited and in thousands) Three Months Ended Rental Revenue: March 31, 2023 March 31, 2022 December 31, 2022 Property rentals $ 158,463 $ 156,922 $ 159,029 Tenant reimbursements 14,458 12,532 10,422 Straight-line rent adjustments 7,756 (1,789) 5,794 Amortization of ab
Slide 11: Funds From Operations (FFO)
FFO (unaudited and in thousands, except share and per share amounts) Three Months Ended March 31, 2023 March 31, 2022 December 31, 2022 Reconciliation of net income (loss) to FFO and Core FFO: Net income (loss) $ 8,314 $ 6,122 $ (39,581) Real estate depreciation and amortization (including our share
Slide 12: Funds Available for Distribution (FAD)
FAD (unaudited and in thousands) Three Months Ended March 31, 2023 March 31, 2022 December 31, 2022 Reconciliation of Core FFO to FAD: Core FFO $ 79,295 $ 72,790 $ 70,339 Add (subtract) adjustments (including our share of unconsolidated joint ventures) to arrive at FAD: Straight-line rent adjustment
Slide 13: EBITDAre
EBITDAre (unaudited and in thousands) Three Months Ended March 31, 2023 March 31, 2022 December 31, 2022 Reconciliation of net income (loss) to EBITDAre and Adjusted EBITDAre: Net income (loss) $ 8,314 $ 6,122 $ (39,581) Add (subtract) adjustments (including our share of unconsolidated joint venture
Slide 14: Net Operating Income (NOI)
NOI (unaudited and in thousands) Three Months Ended March 31, 2023 March 31, 2022 December 31, 2022 Reconciliation of net income (loss) to NOI and Cash NOI: Net income (loss) $ 8,314 $ 6,122 $ (39,581) Add (subtract) adjustments to arrive at NOI and Cash NOI: Depreciation and amortization 58,888 55,
Slide 15: NOI by Region
NOI (unaudited and in thousands) Three Months Ended March 31, 2023 Total New York San Francisco Other Reconciliation of net income (loss) to NOI and Cash NOI: Net income (loss) $ 8,314 $ 5,838 $ 13,087 $ (10,611) Add (subtract) adjustments to arrive at NOI and Cash NOI: Depreciation and amortization
Slide 16: Same Store Results - Cash NOI
SAME STORE RESULTS (unaudited and in thousands) SAME STORE CASH NOI (1) Three Months Ended March 31, 2023 Total New York San Francisco Other PGRE's share of Cash NOI for the three months ended March 31, 2023 $ 94,615 $ 64,946 $ 30,479 $ (810) Acquisitions / Redevelopment and other, net 753 (57) (2)
Slide 17: Same Store Results - NOI
SAME STORE RESULTS (unaudited and in thousands) SAME STORE NOI (1) Three Months Ended March 31, 2023 Total New York San Francisco Other PGRE's share of NOI for the three months ended March 31, 2023 $ 101,277 $ 68,445 $ 33,964 $ (1,132) Acquisitions / Redevelopment and other, net 1,079 (53) (2) - 1,1
Slide 18: Consolidated Joint Ventures – Balance Sheets
CONSOLIDATED JOINT VENTURES – BALANCE SHEETS (unaudited and in thousands) As of March 31, 2023 Consolidated Joint Ventures Total Consolidated 1633 One Market 300 Mission Joint Ventures Broadway Plaza Street PGRE Ownership 90.0% 49.0% 31.1% Assets: Real estate, net $ 3,349,043 $ 1,709,164 $ 1,164,846
Slide 19: Consolidated Joint Ventures – Balance Sheets (December 31, 2022)
CONSOLIDATED JOINT VENTURES – BALANCE SHEETS (unaudited and in thousands) As of December 31, 2022 Consolidated Joint Ventures Total Consolidated 1633 One Market 300 Mission Joint Ventures Broadway Plaza Street PGRE Ownership 90.0% 49.0% 31.1% Assets: Real estate, net $ 3,364,482 $ 1,718,436 $ 1,167,
Slide 20: Consolidated Joint Ventures - Operating Results
CONSOLIDATED JOINT VENTURES - OPERATING RESULTS (unaudited and in thousands) Three Months Ended March 31, 2023 Consolidated Joint Ventures Total Consolidated 1633 One Market 300 Mission Joint Ventures Broadway Plaza Street Total revenues $ 101,949 $ 49,142 $ 39,972 $ 12,835 Total operating expenses
Slide 21: Consolidated Joint Ventures - Operating Results 2022
CONSOLIDATED JOINT VENTURES - OPERATING RESULTS (unaudited and in thousands) Three Months Ended March 31, 2022 Consolidated Joint Ventures Total Consolidated 1633 One Market 300 Mission Joint Ventures Broadway Plaza Street Total revenues $ 96,623 $ 50,595 $ 34,772 $ 11,256 Total operating expenses 3
Slide 22: Unconsolidated Joint Ventures - Balance Sheets
UNCONSOLIDATED JOINT VENTURES - BALANCE SHEETS (unaudited and in thousands) As of March 31, 2023 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 $ 2,394,692 $ 210,858 $ 623,218 $ 357,614 $ 147,9
Slide 23: Unconsolidated Joint Ventures - Balance Sheets (December 31, 2022)
UNCONSOLIDATED JOINT VENTURES - BALANCE SHEETS (unaudited and in thousands) As of December 31, 2022 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 $ 2,377,084 $ 212,002 $ 627,169 $ 359,405 $ 14
Slide 24: Unconsolidated Joint Ventures - Operating Results
UNCONSOLIDATED JOINT VENTURES - OPERATING RESULTS (unaudited and in thousands) Three Months Ended March 31, 2023 712 Fifth Market 55 Second 111 Sutter Total Avenue Center Street Street Other (1) Total revenues $ 41,978 $ 12,219 $ 14,085 $ 7,864 $ 3,207 $ 4,603 Total operating expenses 24,701 5,829 7
Slide 25: Unconsolidated Joint Ventures - Operating Results 2022
UNCONSOLIDATED JOINT VENTURES - OPERATING RESULTS (unaudited and in thousands) Three Months Ended March 31, 2022 712 Fifth Market 55 Second 111 Sutter Total Avenue Center Street Street Other (1) Total revenues $ 76,102 $ 10,051 $ 14,362 $ 7,859 $ 3,744 $ 40,086 (2) Total operating expenses 42,508 5,
Slide 26: Real Estate Related Funds - Balance Sheets
REAL ESTATE RELATED FUNDS - BALANCE SHEETS (unaudited and in thousands) As of March 31, 2023 As of March 31, 2023 Consolidated Funds Total Residential Total Consolidated Funds Fund X Development Fund Unconsolidated Funds (1) PGRE Ownership 13.0% 7.4% Various Assets: Cash and cash equivalents $ 53,80
Slide 27: Real Estate Related Funds - Balance Sheets (December 31, 2022)
REAL ESTATE RELATED FUNDS - BALANCE SHEETS (unaudited and in thousands) As of December 31, 2022 As of December 31, 2022 Consolidated Funds Total Residential Total Consolidated Funds Fund X Development Fund Unconsolidated Funds (1) PGRE Ownership 13.0% 7.4% Various Assets: Cash and cash equivalents $
Slide 28: Real Estate Related Funds - Operating Results
REAL ESTATE RELATED FUNDS - OPERATING RESULTS (unaudited and in thousands) Three Months Ended Three Months Ended March 31, 2023 March 31, 2023 Consolidated Funds Total Residential Total Consolidated Funds Fund X (1) Development Fund Unconsolidated Funds (2) Income (loss) from real estate related fun
Slide 29: Real Estate Related Funds - Operating Results 2022
REAL ESTATE RELATED FUNDS - OPERATING RESULTS (unaudited and in thousands) Three Months Ended March 31, 2022 Three Months Ended March 31, 2022 Total Consolidated Fund (1) Unconsolidated Funds Fund X Other (2) Income from real estate related fund investments $ - $ 2,503 $ 1,982 $ 521 Loss from uncons
Slide 30: Capital Structure
CAPITAL STRUCTURE (unaudited and in thousands, except share, unit and per share amounts) As of March 31, 2023 Debt: Consolidated debt: Notes and mortgages payable (1) $ 3,858,000 Revolving Credit Facility - 3,858,000 Less: Noncontrolling interests' share of consolidated debt (2) (810,335) Add: PGRE'
Slide 31: Debt Analysis
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 860,000 3.76% 500,000 2.46% 360,000 5.56% 31 West 52nd Street 500,000 3.
Slide 32: Debt Maturities
DEBT MATURITIES (unaudited and in thousands) Consolidated Debt: 2023 2024 2025 2026 2027 Thereafter Total 300 Mission Street $ 273,000 (1) $ - $ - $ - $ - $ - $ 273,000 One Market Plaza - 975,000 - - - - 975,000 31 West 52nd Street - - - 500,000 - - 500,000 1301 Avenue of the Americas - - - 860,000
Slide 33: Portfolio Summary – New York
PORTFOLIO SUMMARY – NEW YORK (unaudited and in thousands, except square feet and per square foot amounts) Annualized Rent (1) Square Feet Paramount % % Per In Out of Property Ownership Leased (1) Occupied (1) Amount Square Foot (2) Service Service Total Key Tenants 1633 Broadway Office 90.0% 100.0%
Slide 34: Portfolio Summary – San Francisco
PORTFOLIO SUMMARY – SAN FRANCISCO (unaudited and in thousands, except square feet and per square foot amounts) Annualized Rent (1) Square Feet Paramount % % Per In Out of Property Ownership Leased (1) Occupied (1) Amount Square Foot (2) Service Service Total Key Tenants One Market Plaza Office 49.0%
Slide 35: Same Store Leased Occupancy
SAME STORE LEASED OCCUPANCY (unaudited) As of March 31, 2023 As of December 31, 2022 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% 99.7% 99.7% 99.7% 99.7% -% 1301 Avenue of the Americ
Slide 36: Top Tenants and Industry Diversification
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 Top 10 Tenants: Lease Square Feet Square Feet Per Square Annualized As of March 31, 2023 Property Expiration Occupied (2) Occupie
Slide 37: Leasing Activity
LEASING ACTIVITY (1) (unaudited) Total New York San Francisco Three Months Ended March 31, 2023 Total square feet leased 195,634 118,967 76,667 PGRE's share of total square feet leased: 170,333 118,967 51,366 Initial rent (2) $ 82.21 $ 81.00 $ 85.00 Weighted average lease term (in years) 13.0 16.5 5
Slide 38: Lease Expirations – Total Portfolio
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
Slide 39: Lease Expirations – New York
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 Mont
Slide 40: Lease Expirations – San Francisco
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
Slide 41: Cash Basis Capital Expenditures
CASH BASIS CAPITAL EXPENDITURES (unaudited and in thousands) Three Months Ended March 31, 2023 Total New York San Francisco Other Capital Expenditures (including our share of unconsolidated joint ventures): (1) Expenditures to maintain assets $ 5,662 $ 3,504 $ 1,653 $ 505 Second generation tenant im
Slide 42: Definitions
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 companie
Slide 43: Definitions - Continued
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 related funds, unrealized gains or losses on interest rate swaps, transaction related costs, gains or losses on early extinguishm