31 slides from Paramount Corp. Bhd's investor presentation, November 2023
Slide 1: Investor Presentation November 2023
INVESTOR PRESENTATION NOVEMBER 2023
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 Business Update 3 Balance Sheet & Capital Structure 4 Portfolio Composition 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) ~$8.5 B (2) $370 MM (3) 88.1% TOTAL AUM CAS
Slide 5: Office Centric Business with High-quality Properties, Commanding Premium Rents
Office Centric Business with High-quality Properties, Commanding Premium Rents 95% Exposure to Trophy and Class A office rent revenues with limited retail exposure 6.4 years Average lease term for office leases New York – 7.2 years San Francisco – 3.8 years $87/sqft Annualized rent 5
Slide 6: High Credit Quality Tenant Base
High Credit Quality Tenant Base PGRE's Share of Square Feet % of Ann. (2) Top 10 Tenants Expiration Date Occupied (1) Rent (3) (3) 1. Various 344,010 4.8% (4) (4) Industr y Diversification – % 2. 6/2024 328,543 4.6% o f A n n u a l i z e d R e n t (2) 3. 1/2031 288,823 4.4% Other Professional (5) (5
Slide 7: Experienced and Diverse Management Team
Experienced and Diverse Management Team Executive Management ALBERT BEHLER WILBUR PAES PETER BRINDLEY GAGE JOHNSON ERMELINDA BERBERI Chairman, Chief Executive Chief Operating Officer, Chief Head of Real Estate General Counsel Chief Accounting Officer Officer & President Financial Officer & Treasurer
Slide 8: Business Update
1 Introduction to Paramount 2 Business Update 3 Balance Sheet & Capital Structure 4 Portfolio Composition 5 ESG Strategy 6 Appendix 8
Slide 9: Large-Block Vacancy & Lease Expirations
Large-Block Vacancy & Lease Expirations Large-Block Vacancies/Upcoming Roll (PGRE share) 1301 Avenue of the Americas, NY Barclay's 258k sf/56% Leased 200k sf/Currently Vacant 458k sf 1301 Avenue of the Americas, NY Credit Agricole 161k sf/53% Leased 144k sf/Currently Vacant 305k sf Market Center, SF
Slide 10: Balance Sheet & Capital Structure
1 Introduction to Paramount 2 Business Update 3 Balance Sheet & Capital Structure 4 Portfolio Composition 5 ESG Strategy 6 Appendix 10
Slide 11: Capital Structure Overview
Capital Structure Overview Liquidity ($ in Millions) (6) Capital Structure $1,216.8 (in thousands, except per share amounts) At $466.8 Green Street (1) NAV Stock Price $8.25 $750.0 Common Shares 217,353 Operating Partnership Units 19,430 Total Shares / Units Outstanding 236,783 LIQUIDITY Equity Mark
Slide 12: Well-Laddered Debt Maturity Profile
Well-Laddered Debt Maturity Profile ($ in Millions) (1) (2) $1,400.0 $1,400.0 Fixed Variable $360.0 Fixed Variable $360.0 $1,200.0 $1,200.0 $1,000.0 $1,000.0 $800.0 $800.0 $600.0 $1,154.8 $1,284.0 $600.0 $1,134.0 $78.8 $1,082.7 $400.0 $400.0 $6.4 $5.9 $477.8 $200.0 $477.8 $200.0 $269.4 $28.8 (3) $10
Slide 13: Portfolio Composition
1 Introduction to Paramount 2 Business Update 3 Balance Sheet & Capital Structure 4 Portfolio Composition 5 ESG Strategy 6 Appendix 13
Slide 14: Irreplaceable Portfolio of Trophy Assets – New York
Irreplaceable Portfolio of 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. ▪ 99.7% ▪ 82.4% leased leased New York ▪ 25% of G A V (2) ▪ 5% of G A V (2) 2 1301 Avenue of 6 712 Fifth ▪ 8.7MM Square Feet the Americas Avenue ▪ 1.8MM ▪ 0.6MM ▪ 90.4
Slide 15: Irreplaceable Portfolio of Trophy Assets – San Francisco
Irreplaceable Portfolio of Trophy Assets – San Francisco 1 One Market 5 55 Second Plaza Street San Francisco ▪ 1.6MM sq. ft. ▪ 0.4MM sq. ft. ▪ 95.8% ▪ 86.7% leased leased ▪ 4.3MM Square Feet ▪ 11% of G A V (2) ▪ 2% of G A V (2) ▪ 82.0% Leased (1) 2 One Front 6 111 Sutter ▪ 29% of GAV (2) Street Stre
Slide 16: 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 16
Slide 17: ESG Strategy
1 Introduction to Paramount 2 Business Update 3 Balance Sheet & Capital Structure 4 Portfolio Composition 5 ESG Strategy 6 Appendix 17
Slide 18: 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 19: 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 20: Sustainability from Coast to Coast
Sustainability from Coast to Coast 20
Slide 21: ESG Highlights
ESG Highlights Note: Slide reflects Office REIT Portfolio 21
Slide 22: ESG Frameworks – History of Improvements
ESG Frameworks – History of Improvements Framework 0-10; lower Negligible- Scoring A-F Y/N 1-5 Stars AAA-CCC Y/N Y/N Y/N is better Severe E=10 No 2018 N 4 Stars N/A S=10 N N N/A N Response G=7 E=4 No 2019 N 5 Stars BB S=1 Y N N/A N Response G=7 E=4 2020 C N 5 Stars BB S=2 Y N Low N G=8 E=2 2021 B- Y
Slide 23: Pathway to Decarbonization
Pathway to Decarbonization Setting an interim emission reduction target to drive action 100% of electricity used powered by renewable resources Lowering the on-site energy consumption of our portfolio Pilot internal shadow carbon price Replacing fossil fuel burning equipment with electric Report Sco
Slide 24: Diversity, Equity & Inclusion (DE&I) Strategy
Diversity, Equity & Inclusion (DE&I) Strategy We are committed to expand our DE&I initiatives, which include additional disclosures on these issues. • Oversight of DE&I aspects by two committees of the Board (Audit, NCGC) • Increase the consideration of diverse candidates for Board-level positions •
Slide 25: Appendix
1 Introduction to Paramount 2 Business Update 3 Balance Sheet & Capital Structure 4 Portfolio Composition 5 ESG Strategy 6 Appendix 25
Slide 26: 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 Nine Months Ended September 30, 2023 September 30, 2022 June 30, 2023 September 30, 2023 September 30, 2022 Reconciliation of net (loss) income to FFO and Core FFO: Net (loss)
Slide 27: Reconciliation of Non-GAAP Measures – NOI
Reconciliation of Non-GAAP Measures NOI (unaudited and in thousands) Three Months Ended Nine Months Ended September 30, 2023 September 30, 2022 June 30, 2023 September 30, 2023 September 30, 2022 Reconciliation of net (loss) income to NOI and Cash NOI: Net (loss) income $ (25,061) $ 1,224 $ (82,829)
Slide 28: Reconciliation of Non-GAAP Measures – Same Store Cash NOI
Reconciliation of Non-GAAP Measures SAME STORE RESULTS (unaudited and in thousands) SAME STORE CASH NOI (1) Three Months Ended September 30, 2023 Total New York San Francisco Other PGRE's share of Cash NOI for the three months ended September 30, 2023 $ 94,195 $ 66,931 $ 28,273 $ (1,009) Lease termi
Slide 29: Reconciliation of Non-GAAP Measures – Same Store NOI
Reconciliation of Non-GAAP Measures SAME STORE RESULTS (unaudited and in thousands) SAME STORE NOI (1) Three Months Ended September 30, 2023 Total New York San Francisco Other PGRE's share of NOI for the three months ended September 30, 2023 $ 96,064 $ 66,606 $ 30,437 $ (979) Lease termination incom
Slide 30: 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 31: Appendix: Definitions (Cont'd)
Appendix: Definitions (Cont’d) 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 fina