EX-99.2

EX-99.2 3 d772451dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

LOGO

SUPPLEMENTAL OPERATING AND FINANCIAL DATA

FOR THE QUARTER ENDED JUNE 30, 2019


		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 ability to enter into new leases or renew leases on favorable terms, dependence on tenants’ financial condition, 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 - 23
Unconsolidated Joint Ventures		24 - 26
Unconsolidated Funds Summary		27
Capital Structure		28
Debt Analysis		29
Debt Maturities		30

Selected Property Data
Portfolio Summary		31
Same Store Leased Occupancy		32 - 33
Top Tenants and Industry Diversification		34
Leasing Activity		35 - 36
Lease Expirations		37 - 40
Cash Basis Capital Expenditures		41 - 42

Definitions		43 - 44

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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, San Francisco, and Washington, D.C. 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.

EXECUTIVE MANAGEMENT


Albert Behler		Chairman, Chief Executive Officer and President
Wilbur Paes		Executive Vice President, Chief Financial Officer and Treasurer
Peter Brindley		Executive Vice President, Leasing
David Zobel		Executive Vice President, Head of Acquisitions

BOARD OF DIRECTORS


Albert Behler		Director, Chairman of the Board
Thomas Armbrust		Director
Martin Bussmann		Director
Colin Dyer		Director
Dan Emmett		Director, Chair of Nominating and Corporate Governance Committee; Lead Independent Director
Lizanne Galbreath		Director, Chair of Compensation Committee
Karin Klein		Director
Peter Linneman		Director, Chair of Audit Committee
Katharina Otto-Bernstein		Director
Mark Patterson		Director

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	Steve Sakwa
Bank of America Merrill Lynch	BTIG	Deutsche Bank	Evercore ISI
(646) 855-5808	(212) 738-6140	(904) 520-4973	(212) 446-9462
james.feldman@baml.com	tcatherwood@btig.com	derek.johnston@db.com	steve.sakwa@evercoreisi.com

Daniel Ismail	Haendel St. Juste	Vikram Malhotra	Blaine Heck
Green Street Advisors	Mizuho Securities USA Inc.	Morgan Stanley	Wells Fargo
(949) 640-8780	(212) 205-7860	(212) 761-7064	(443) 263-6529
dismail@greenst.com	haendel.st.juste@us.mizuho-sc.com	vikram.malhotra@morganstanley.com	blaine.heck@wellsfargo.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 2019
(Amounts per diluted share)	Low			High
Estimated net income attributable to common stockholders	$	0.03		$	0.07
Our share of real estate depreciation and amortization		0.90			0.90

Estimated Core FFO ⁽¹⁾	$	0.93		$	0.97


Operating Assumptions:
Leasing Activity (square feet)		1,300,000			1,400,000
PGRE’s share of Same Store Leased % ⁽²⁾ at year end		96.0	%		97.0	%
Increase in PGRE’s share of Same Store Cash NOI ⁽²⁾		7.0	%		9.0	%
Increase in PGRE’s share of Same Store NOI ⁽²⁾		3.0	%		5.0	%

Financial Assumptions (at share):
Estimated net income	$	7,000		$	18,000
Depreciation and amortization		233,000			233,000
General and administrative expenses		64,000			62,000
Interest and debt expense, including amortization of deferred financing costs		136,000			134,000
Fee income, net of income taxes		(18,000	)		(19,000	)
Other, net (primarily interest income)		(5,000	)		(5,000	)

NOI ⁽²⁾		417,000			423,000
Straight-line rent adjustments and above and below-market lease revenue, net		(45,000	)		(47,000	)

Cash NOI ⁽²⁾	$	372,000		$	376,000

⁽¹⁾

We are increasing our Estimated Core FFO Guidance for the full year of 2019, which is reconciled above to estimated net income attributable to common stockholders per diluted share in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The estimated net income 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 31, 2019 and otherwise referenced during our conference call scheduled for August 1, 2019. 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 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 43 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, 2019		June 30, 2018			March 31, 2019		June 30, 2019		June 30, 2018
Net income (loss) attributable to common stockholders	$	2,455	$	(34,816	)	$	3,709	$	6,164	$	(33,702	)
Per share - basic and diluted	$	0.01	$	(0.14	)	$	0.02	$	0.03	$	(0.14	)

Core FFO attributable to common stockholders⁽¹⁾	$	53,239	$	57,899		$	57,113	$	110,352	$	112,862
Per share - diluted	$	0.23	$	0.24		$	0.24	$	0.47	$	0.47

PGRE’s share of Cash NOI ⁽¹⁾	$	91,812	$	88,488		$	93,069	$	184,881	$	174,435
PGRE’s share of NOI ⁽¹⁾	$	103,138	$	106,246		$	104,943	$	208,081	$	206,826


Same Store Cash NOI ⁽¹⁾	% Change
Three Months Ended June 30, 2019 vs. June 30, 2018		8.3	%
Six Months Ended June 30, 2019 vs. June 30, 2018		9.8	%


Same Store NOI ⁽¹⁾	% Change
Three Months Ended June 30, 2019 vs. June 30, 2018		0.6	%
Six Months Ended June 30, 2019 vs. June 30, 2018		3.6	%

PORTFOLIO STATISTICS (at PGRE Share)


	As of
	June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018
Leased % ⁽¹⁾		96.7	%		96.0	%		96.4	%		96.4	%		96.4	%


Same Store Leased %	% Change
June 30, 2019 vs. March 31, 2019		0.7	%
June 30, 2019 vs. December 31, 2018		0.7	%

Same Store Leased %

% Change

June 30, 2019 vs. June 30, 2018

0.7

COMMON SHARE DATA


	Three Months Ended
	June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018
Share Price:
High	$	15.11		$	15.03		$	15.16		$	16.05		$	15.63
Low	$	13.53		$	12.18		$	12.19		$	14.83		$	13.85
Closing (end of period)	$	14.01		$	14.19		$	12.56		$	15.09		$	15.40

Dividends per common share	$	0.10		$	0.10		$	0.10		$	0.10		$	0.10
Annualized dividends per common share	$	0.40		$	0.40		$	0.40		$	0.40		$	0.40
Dividend yield (on closing share price)		2.9	%		2.8	%		3.2	%		2.7	%		2.6	%

⁽¹⁾	See page 43 for our definition of this measure.

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		CONSOLIDATED BALANCE SHEETS

(unaudited and in thousands)


	June 30, 2019			December 31, 2018
Assets:
Real estate, at cost:
Land	$	2,065,206		$	2,065,206
Buildings and improvements		6,084,684			6,036,445

		8,149,890			8,101,651
Accumulated depreciation and amortization		(735,124	)		(644,639	)

Real estate, net		7,414,766			7,457,012
Cash and cash equivalents		283,485			339,653
Restricted cash		22,894			25,756
Investments in unconsolidated joint ventures		137,734			78,863
Investments in unconsolidated real estate funds		8,263			10,352
Preferred equity investments		—			36,042
Accounts and other receivables, net		19,695			20,076
Due from affiliates		170,000			—
Deferred rent receivable		289,565			267,456
Deferred charges, net		130,550			117,858
Intangible assets, net		239,326			270,445
Other assets		137,597			132,465

Total assets	$	8,853,875		$	8,755,978


Liabilities:
Notes and mortgages payable, net	$	3,571,233		$	3,566,917
Revolving credit facility		170,000			—
Accounts payable and accrued expenses		124,460			124,334
Dividends and distributions payable		25,953			25,902
Intangible liabilities, net		84,531			95,991
Other liabilities		64,309			51,170

Total liabilities		4,040,486			3,864,314


Equity:
Paramount Group, Inc. equity		3,950,070			4,000,800
Noncontrolling interests in:
Consolidated joint ventures		365,278			394,995
Consolidated real estate fund		81,949			66,887
Operating Partnership		416,092			428,982

Total equity		4,813,389			4,891,664


Total liabilities and equity	$	8,853,875		$	8,755,978

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		CONSOLIDATED STATEMENTS OF INCOME

(unaudited and in thousands, except per share amounts)


	Three Months Ended									Six Months Ended
	June 30, 2019			June 30, 2018			March 31, 2019			June 30, 2019			June 30, 2018
Revenues:
Rental revenue ⁽¹⁾	$	181,140		$	182,722		$	182,616		$	363,756		$	360,401
Fee and other income ⁽¹⁾		7,443			8,697			9,176			16,619			15,289

Total revenues ⁽¹⁾		188,583			191,419			191,792			380,375			375,690


Expenses:
Operating		67,572			67,646			68,381			135,953			136,624
Depreciation and amortization		62,625			64,775			63,089			125,714			129,931
General and administrative ⁽¹⁾		17,695			17,195			17,443			35,138			29,826
Transaction related costs		182			293			736			918			413

Total expenses		148,074			149,909			149,649			297,723			296,794


Other income (expense):
(Loss) income from unconsolidated joint ventures		(456	)		2,521			(1,027	)		(1,483	)		2,459
Income (loss) from unconsolidated real estate funds		19			(14	)		46			65			(80	)
Interest and other income, net ⁽¹⁾		2,583			2,094			3,900			6,483			4,110
Interest and debt expense ⁽¹⁾		(37,213	)		(36,809	)		(36,924	)		(74,137	)		(72,891	)
Real estate impairment loss		—			(46,000	)		—			—			(46,000	)

Net income (loss) before income taxes		5,442			(36,698	)		8,138			13,580			(33,506	)
Income tax (expense) benefit		(268	)		120			(1,138	)		(1,406	)		(357	)

Net income (loss)		5,174			(36,578	)		7,000			12,174			(33,863	)
Less net (income) loss attributable to noncontrolling interests in:
Consolidated joint ventures		(2,408	)		(1,752	)		(2,794	)		(5,202	)		(2,807	)
Consolidated real estate fund		(53	)		(152	)		(94	)		(147	)		(582	)
Operating Partnership		(258	)		3,666			(403	)		(661	)		3,550

Net income (loss) attributable to common stockholders	$	2,455		$	(34,816	)	$	3,709		$	6,164		$	(33,702	)

*Per diluted share*	$	*0.01*		$	*(0.14*	)	$	*0.02*		$	*0.03*		$	*(0.14*	)


Capitalized internal leasing costs	$	—		$	1,375		$	—		$	—		$	3,107

⁽¹⁾	See page 10 for details.

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		SELECT INCOME STATEMENT DATA

(unaudited and in thousands)


	Three Months Ended						Six Months Ended
	June 30, 2019		June 30, 2018		March 31, 2019		June 30, 2019		June 30, 2018
Rental Revenue:
Property rentals	$	153,345	$	148,486	$	151,228	$	304,573	$	294,227
Tenant reimbursements		14,536		13,164		15,615		30,151		27,410
Straight-line rent adjustments		10,532		16,739		11,578		22,110		29,983
Amortization of above and below-market leases, net		2,727		4,304		3,276		6,003		8,724
Lease termination income		—		29		919		919		57

Total rental revenue	$	181,140	$	182,722	$	182,616	$	363,756	$	360,401


	Three Months Ended						Six Months Ended
	June 30, 2019		June 30, 2018		March 31, 2019		June 30, 2019		June 30, 2018
Fee and Other Income:
Property management	$	1,599	$	1,490	$	1,642	$	3,241	$	2,992
Asset management		2,290		1,823		2,318		4,608		3,433
Acquisition and disposition		—		1,750		1,331		1,331		1,750
Other		324		346		708		1,032		699

Total fee income		4,213		5,409		5,999		10,212		8,874
Other (primarily parking income and tenant requested services, including overtime heating and cooling)		3,230		3,288		3,177		6,407		6,415

Total fee and other income	$	7,443	$	8,697	$	9,176	$	16,619	$	15,289


	Three Months Ended						Six Months Ended
	June 30, 2019		June 30, 2018		March 31, 2019		June 30, 2019		June 30, 2018
General and Administrative:
Cash general and administrative	$	11,770	$	12,346	$	7,772	$	19,542	$	18,621
Non-cash general and administrative—stock based compensation expense		5,083		4,650		7,602		12,685		10,915
Mark-to-market of deferred compensation plan liabilities (offset by an increase in the mark-to-market of plan assets, which is included in “interest and other income”)		842		199		2,069		2,911		290

Total general and administrative	$	17,695	$	17,195	$	17,443	$	35,138	$	29,826


	Three Months Ended						Six Months Ended
	June 30, 2019		June 30, 2018		March 31, 2019		June 30, 2019		June 30, 2018
Interest and Other Income, net:
Interest income, net	$	1,741	$	978	$	1,377	$	3,118	$	2,004
Mark-to-market of deferred compensation plan assets (offset by an increase in the mark-to-market of plan liabilities, which is included in “general and administrative” expenses)		842		199		2,069		2,911		290
Preferred equity investment income ⁽¹⁾		—		917		454		454		1,816

Total interest and other income, net	$	2,583	$	2,094	$	3,900	$	6,483	$	4,110

⁽¹⁾ Represents 100% of the investment income from PGRESS Equity Holdings, L.P., of which our 24.4% share is $223 and $111 for the three months ended June 30, 2018 and March 31, 2019, respectively and $111 and $442 for the six months ended June 30, 2019 and 2018, respectively. On March 1, 2019, our only remaining preferred equity investment was redeemed.
	Three Months Ended						Six Months Ended
	June 30, 2019		June 30, 2018		March 31, 2019		June 30, 2019		June 30, 2018
Interest and Debt Expense:
Interest expense	$	34,388	$	34,055	$	34,123	$	68,511	$	67,376
Amortization of deferred financing costs		2,825		2,754		2,801		5,626		5,515

Total interest and debt expense	$	37,213	$	36,809	$	36,924	$	74,137	$	72,891

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		FFO

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


	Three Months Ended									Six Months Ended
	June 30, 2019			June 30, 2018			March 31, 2019			June 30, 2019			June 30, 2018
Reconciliation of net income (loss) to FFO and Core FFO:
Net income (loss)	$	5,174		$	(36,578	)	$	7,000		$	12,174		$	(33,863	)
Real estate depreciation and amortization (including our share of unconsolidated joint ventures)		66,069			66,711			66,065			132,134			133,871
Real estate impairment loss		—			46,000			—			—			46,000

FFO ⁽¹⁾		71,243			76,133			73,065			144,308			146,008
Less FFO attributable to noncontrolling interests in:
Consolidated joint ventures		(11,277	)		(10,840	)		(11,748	)		(23,025	)		(21,047	)
Consolidated real estate fund		(53	)		(152	)		(94	)		(147	)		(582	)

FFO attributable to Paramount Group Operating Partnership		59,913			65,141			61,223			121,136			124,379
Less FFO attributable to noncontrolling interests in Operating Partnership		(5,705	)		(6,206	)		(5,998	)		(11,703	)		(11,791	)

FFO attributable to common stockholders⁽¹⁾	$	54,208		$	58,935		$	55,225		$	109,433		$	112,588

Per diluted share	$	0.23		$	0.25		$	0.24		$	0.47		$	0.47


FFO	$	71,243		$	76,133		$	73,065		$	144,308		$	146,008
Non-core items:
Our share of (distributions from 712 Fifth Avenue in excess of earnings) and earnings in excess of distributions		(1,331	)		(1,512	)		1,270			(61	)		(317	)
Other, net		260			367			823			1,083			618

Core FFO ⁽¹⁾		70,172			74,988			75,158			145,330			146,309
Less Core FFO attributable to noncontrolling interests in:
Consolidated joint ventures		(11,277	)		(10,840	)		(11,748	)		(23,025	)		(21,047	)
Consolidated real estate fund		(53	)		(152	)		(94	)		(147	)		(582	)

Core FFO attributable to Paramount Group Operating Partnership		58,842			63,996			63,316			122,158			124,680
Less Core FFO attributable to noncontrolling interests in Operating Partnership		(5,603	)		(6,097	)		(6,203	)		(11,806	)		(11,818	)

Core FFO attributable to common stockholders ⁽¹⁾	$	53,239		$	57,899		$	57,113		$	110,352		$	112,862

Per diluted share	$	0.23		$	0.24		$	0.24		$	0.47		$	0.47

Reconciliation of weighted average shares outstanding:
Weighted average shares outstanding		234,329,904			240,336,485			233,419,299			233,877,117			240,324,183
Effect of dilutive securities		25,960			17,229			39,139			31,119			20,525

Denominator for FFO and Core FFO per diluted share		234,355,864			240,353,714			233,458,438			233,908,236			240,344,708

⁽¹⁾	See page 43 for our definition of this measure.

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		FAD

(unaudited and in thousands)


	Three Months Ended									Six Months Ended
	June 30, 2019			June 30, 2018			March 31, 2019			June 30, 2019			June 30, 2018
Reconciliation of Core FFO to FAD:
Core FFO	$	70,172		$	74,988		$	75,158		$	145,330		$	146,309
Add (subtract) adjustments to arrive at FAD:
Amortization of stock-based compensation expense		5,083			4,650			7,602			12,685			10,915
Amortization of deferred financing costs (including our share of unconsolidated joint ventures)		2,977			2,827			2,926			5,903			5,662
Amortization of above and below-market leases, net (including our share of unconsolidated joint ventures)		(2,725	)		(4,141	)		(3,220	)		(5,945	)		(8,398	)
Expenditures to maintain assets		(4,006	)		(2,496	)		(3,535	)		(7,541	)		(6,198	)
Second generation tenant improvements and leasing commissions		(14,380	)		(20,392	)		(15,506	)		(29,886	)		(35,375	)
Straight-line rent adjustments (including our share of unconsolidated joint ventures)		(10,857	)		(16,853	)		(11,778	)		(22,635	)		(30,050	)

FAD ⁽¹⁾		46,264			38,583			51,647			97,911			82,865
Less FAD attributable to noncontrolling interests in:
Consolidated joint ventures		(6,269	)		(6,277	)		(6,533	)		(12,802	)		(13,127	)
Consolidated real estate fund		(53	)		(152	)		(94	)		(147	)		(582	)

FAD attributable to Paramount Group Operating Partnership		39,942			32,154			45,020			84,962			69,156
Less FAD attributable to noncontrolling interests in Operating Partnership		(3,803	)		(3,063	)		(4,410	)		(8,213	)		(6,551	)

FAD attributable to common stockholders ^(1) (2)	$	36,139		$	29,091		$	40,610		$	76,749		$	62,605


Dividends declared on common stock	$	23,439		$	24,053		$	23,448		$	46,887		$	48,104

⁽¹⁾	See page 43 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.

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		EBITDAre

(unaudited and in thousands)


	Three Months Ended									Six Months Ended
	June 30, 2019			June 30, 2018			March 31, 2019			June 30, 2019			June 30, 2018
Reconciliation of net income (loss) to EBITDAre and Adjusted EBITDAre:
Net income (loss)	$	5,174		$	(36,578	)	$	7,000		$	12,174		$	(33,863	)
Add (subtract) adjustments to arrive at EBITDAre and Adjusted EBITDAre:
Depreciation and amortization (including our share of unconsolidated joint ventures)		66,069			66,711			66,065			132,134			133,871
Interest and debt expense (including our share of unconsolidated joint ventures)		39,827			38,513			39,166			78,993			76,257
Income tax expense (benefit) (including our share of unconsolidated joint ventures)		270			(120	)		1,139			1,409			358
Real estate impairment loss		—			46,000			—			—			46,000

EBITDAre⁽¹⁾		111,340			114,526			113,370			224,710			222,623
Less EBITDAre attributable to noncontrolling interests in:
Consolidated joint ventures		(17,919	)		(17,469	)		(18,329	)		(36,248	)		(34,255	)
Consolidated real estate fund		(54	)		(122	)		(98	)		(152	)		(554	)

PGRE’s share of EBITDAre ⁽¹⁾	$	93,367		$	96,935		$	94,943		$	188,310		$	187,814


EBITDAre	$	111,340		$	114,526		$	113,370		$	224,710		$	222,623
Add (subtract) adjustments to arrive at Adjusted EBITDAre:
Our share of (distributions from 712 Fifth Avenue in excess of earnings) and earnings in excess of distributions		(1,331	)		(1,512	)		1,270			(61	)		(317	)
Other, net		156			171			634			790			(123	)

Adjusted EBITDAre ⁽¹⁾		110,165			113,185			115,274			225,439			222,183
Less Adjusted EBITDAre attributable to noncontrolling interests in:
Consolidated joint ventures		(17,919	)		(17,469	)		(18,329	)		(36,248	)		(34,255	)
Consolidated real estate fund		—			—			—			—			—

PGRE’s share of Adjusted EBITDAre ⁽¹⁾	$	92,246		$	95,716		$	96,945		$	189,191		$	187,928

⁽¹⁾	See page 43 for our definition of this measure.

- 13 -


		NOI

(unaudited and in thousands)


	Three Months Ended									Six Months Ended
	June 30, 2019			June 30, 2018			March 31, 2019			June 30, 2019			June 30, 2018
Reconciliation of net income (loss) to NOI and Cash NOI:
Net income (loss)	$	5,174		$	(36,578	)	$	7,000		$	12,174		$	(33,863	)
Add (subtract) adjustments to arrive at NOI and Cash NOI:
Depreciation and amortization		62,625			64,775			63,089			125,714			129,931
General and administrative		17,695			17,195			17,443			35,138			29,826
Interest and debt expense		37,213			36,809			36,924			74,137			72,891
Income tax expense (benefit)		268			(120	)		1,138			1,406			357
NOI from unconsolidated joint ventures		4,185			4,569			5,411			9,596			9,309
Fee income		(4,213	)		(5,409	)		(5,999	)		(10,212	)		(8,874	)
Interest and other income, net		(2,583	)		(2,094	)		(3,900	)		(6,483	)		(4,110	)
Real estate impairment loss		—			46,000			—			—			46,000
Other, net		619			(2,214	)		1,717			2,336			(1,966	)

NOI ⁽¹⁾		120,983			122,933			122,823			243,806			239,501
Less NOI attributable to noncontrolling interests in:
Consolidated joint ventures		(17,839	)		(16,674	)		(17,909	)		(35,748	)		(32,688	)
Consolidated real estate fund		(6	)		(13	)		29			23			13

PGRE’s share of NOI⁽¹⁾	$	103,138		$	106,246		$	104,943		$	208,081		$	206,826


NOI ⁽¹⁾	$	120,983		$	122,933		$	122,823		$	243,806		$	239,501
Less:
Straight-line rent adjustments (including our share of unconsolidated joint ventures)		(10,857	)		(16,853	)		(11,778	)		(22,635	)		(30,050	)
Amortization of above and below-market leases, net (including our share of unconsolidated joint ventures)		(2,725	)		(4,141	)		(3,220	)		(5,945	)		(8,398	)

Cash NOI⁽¹⁾		107,401			101,939			107,825			215,226			201,053
Less Cash NOI attributable to noncontrolling interests in:
Consolidated joint ventures		(15,583	)		(13,438	)		(14,785	)		(30,368	)		(26,631	)
Consolidated real estate fund		(6	)		(13	)		29			23			13

PGRE’s share of Cash NOI ⁽¹⁾	$	91,812		$	88,488		$	93,069		$	184,881		$	174,435

⁽¹⁾	See page 43 for our definition of this measure.

- 14 -


		NOI

(unaudited and in thousands)


	Three Months Ended June 30, 2019
	Total			New York			San Francisco			Washington, D.C.		Other
Reconciliation of net income (loss) to NOI and Cash NOI:
Net income (loss)	$	5,174		$	9,196		$	8,097		$	2,056	$	(14,175	)
Add (subtract) adjustments to arrive at NOI and Cash NOI:
Depreciation and amortization		62,625			39,926			19,545			2,348		806
General and administrative		17,695			—			—			—		17,695
Interest and debt expense		37,213			23,883			12,273			—		1,057
Income tax expense		268			—			13			—		255
NOI from unconsolidated joint ventures		4,185			2,886			1,213			—		86
Fee income		(4,213	)		—			—			—		(4,213	)
Interest and other income, net		(2,583	)		—			(225	)		—		(2,358	)
Other, net		619			(768	)		1,249			—		138

NOI ⁽¹⁾		120,983			75,123			42,165			4,404		(709	)
Less NOI attributable to noncontrolling interests in:
Consolidated joint ventures		(17,839	)		—			(17,839	)		—		—
Consolidated real estate fund		(6	)		—			—			—		(6	)

PGRE’s share of NOIfor the three months ended June 30, 2019	$	103,138		$	75,123		$	24,326		$	4,404	$	(715	)

PGRE’s share of NOI for the three months ended June 30, 2018	$	106,246		$	74,737		$	23,622		$	9,699	$	(1,812	)


NOI ⁽¹⁾	$	120,983		$	75,123		$	42,165		$	4,404	$	(709	)
Add (subtract) adjustments to arrive at Cash NOI:
Straight-line rent adjustments (including our share of unconsolidated joint ventures)		(10,857	)		(9,225	)		(1,690	)		80		(22	)
Amortization of above and below-market leases, net (including our share of unconsolidated joint ventures)		(2,725	)		480			(3,225	)		20		—

Cash NOI⁽¹⁾		107,401			66,378			37,250			4,504		(731	)
Less Cash NOI attributable to noncontrolling interests in:
Consolidated joint ventures		(15,583	)		—			(15,583	)		—		—
Consolidated real estate fund		(6	)		—			—			—		(6	)

PGRE’s share of Cash NOI for the three months ended June 30, 2019	$	91,812		$	66,378		$	21,667		$	4,504	$	(737	)

PGRE’s share of Cash NOI for the three months ended June 30, 2018	$	88,488		$	63,773		$	17,198		$	9,353	$	(1,836	)

⁽¹⁾	See page 43 for our definition of this measure.

- 15 -


		NOI

(unaudited and in thousands)


	Six Months Ended June 30, 2019
	Total			New York			San Francisco			Washington, D.C.		Other
Reconciliation of net income (loss) to NOI and Cash NOI:
Net income (loss)	$	12,174		$	18,273		$	16,134		$	4,162	$	(26,395	)
Add (subtract) adjustments to arrive at NOI and Cash NOI:
Depreciation and amortization		125,714			79,950			39,436			4,725		1,603
General and administrative		35,138			—			—			—		35,138
Interest and debt expense		74,137			47,626			24,439			—		2,072
Income tax expense		1,406			—			19			—		1,387
NOI from unconsolidated joint ventures		9,596			7,543			1,913			—		140
Fee income		(10,212	)		—			—			—		(10,212	)
Interest and other income, net		(6,483	)		—			(359	)		—		(6,124	)
Other, net		2,336			(619	)		2,121			—		834

NOI ⁽¹⁾		243,806			152,773			83,703			8,887		(1,557	)
Less NOI attributable to noncontrolling interests in:
Consolidated joint ventures		(35,748	)		—			(35,748	)		—		—
Consolidated real estate funds		23			—			—			—		23

PGRE’s share of NOI for the six months ended June 30, 2019	$	208,081		$	152,773		$	47,955		$	8,887	$	(1,534	)

PGRE’s share of NOI for the six months ended June 30, 2018	$	206,826		$	145,886		$	45,391		$	19,303	$	(3,754	)


NOI ⁽¹⁾	$	243,806		$	152,773		$	83,703		$	8,887	$	(1,557	)
Add (subtract) adjustments to arrive at Cash NOI:
Straight-line rent adjustments (including our share of unconsolidated joint ventures)		(22,635	)		(18,549	)		(4,302	)		171		45
Amortization of above and below-market leases, net (including our share of unconsolidated joint ventures)		(5,945	)		955			(6,940	)		40		—

Cash NOI⁽¹⁾		215,226			135,179			72,461			9,098		(1,512	)
Less Cash NOI attributable to noncontrolling interests in:
Consolidated joint ventures		(30,368	)		—			(30,368	)		—		—
Consolidated real estate funds		23			—			—			—		23

PGRE’s share of Cash NOI for the six months ended June 30, 2019	$	184,881		$	135,179		$	42,093		$	9,098	$	(1,489	)

PGRE’s share of Cash NOI for the six months ended June 30, 2018	$	174,435		$	125,971		$	33,613		$	18,568	$	(3,717	)

⁽¹⁾	See page 43 for our definition of this measure.

- 16 -


		SAME STORE RESULTS

(unaudited and in thousands)


	Three Months Ended June 30, 2019
SAME STORE CASH NOI⁽¹⁾	Total			New York			San Francisco			Washington, D.C.			Other
PGRE’s share of Cash NOI for the three months ended June 30, 2019	$	91,812		$	66,378		$	21,667		$	4,504		$	(737	)
Acquisitions⁽²⁾		(951	)		—			(951	)		—			—
Dispositions		—			—			—			—			—
Lease termination income (including our share of unconsolidated joint ventures)		—			—			—			—			—
Other, net		91			114			(23	)		—			—

PGRE’s share of Same Store Cash NOI ⁽¹⁾ for the three months ended June 30, 2019	$	90,952		$	66,492		$	20,693		$	4,504		$	(737	)


	Three Months Ended June 30, 2018
	Total			New York			San Francisco			Washington, D.C.			Other
PGRE’s share of Cash NOI for the three months ended June 30, 2018	$	88,488		$	63,773		$	17,198		$	9,353		$	(1,836	)
Acquisitions		—			—			—			—			—
Dispositions⁽³⁾		(4,613	)		—			—			(4,613	)		—
Lease termination income (including our share of unconsolidated joint ventures)		(54	)		(54	)		—			—			—
Other, net		174			174			—			—			—

PGRE’s share of Same Store Cash NOI ⁽¹⁾ for the three months ended June 30, 2018	$	83,995		$	63,893		$	17,198		$	4,740		$	(1,836	)


Increase (decrease) in PGRE’s share of Same Store Cash NOI	$	6,957		$	2,599		$	3,495		$	(236	)	$	1,099
% Increase (decrease)		8.3	%		4.1	%		20.3	%		(5.0	%)

⁽¹⁾	See page 43 for our definition of this measure.

⁽²⁾	Represents our share of Cash NOI attributable to acquired properties (111 Sutter Street in San Francisco) for the months in which they were not owned by us in both reporting periods.

⁽³⁾	Represents our share of Cash NOI attributable to sold properties (2099 Pennsylvania Avenue and 425 Eye Street in Washington, D.C.) for the months in which they were not owned by us in both reporting periods.

- 17 -


		SAME STORE RESULTS

(unaudited and in thousands)


	Three Months Ended June 30, 2019
SAME STORE NOI ⁽¹⁾	Total			New York			San Francisco			Washington, D.C.			Other
PGRE’s share of NOI for the three months ended June 30, 2019	$	103,138		$	75,123		$	24,326		$	4,404		$	(715	)
Acquisitions ⁽²⁾		(1,213	)		—			(1,213	)		—			—
Dispositions		—			—			—			—			—
Lease termination income (including our share of unconsolidated joint ventures)		—			—			—			—			—
Other, net		91			114			(23	)		—			—

PGRE’s share of Same Store NOI ⁽¹⁾ for the three months ended June 30, 2019	$	102,016		$	75,237		$	23,090		$	4,404		$	(715	)


	Three Months Ended June 30, 2018
	Total			New York			San Francisco			Washington, D.C.			Other
PGRE’s share of NOI for the three months ended June 30, 2018	$	106,246		$	74,737		$	23,622		$	9,699		$	(1,812	)
Acquisitions		—			—			—			—			—
Dispositions ⁽³⁾		(4,925	)		—			—			(4,925	)		—
Lease termination income (including our share of unconsolidated joint ventures)		(54	)		(54	)		—			—			—
Other, net		174			174			—			—			—

PGRE’s share of Same Store NOI ⁽¹⁾ for the three months ended June 30, 2018	$	101,441		$	74,857		$	23,622		$	4,774		$	(1,812	)


Increase (decrease) in PGRE’s share of Same Store NOI	$	575		$	380		$	(532	)	$	(370	)	$	1,097
% Increase (decrease)		0.6	%		0.5	%		(2.3	%)		(7.8	%)

⁽¹⁾	See page 43 for our definition of this measure.

⁽²⁾	Represents our share of NOI attributable to acquired properties (111 Sutter Street in San Francisco) for the months in which they were not owned by us in both reporting periods.

⁽³⁾	Represents our share of NOI attributable to sold properties (2099 Pennsylvania Avenue and 425 Eye Street in Washington, D.C.) for the months in which they were not owned by us in both reporting periods.

- 18 -


		SAME STORE RESULTS

(unaudited and in thousands)


	Six Months Ended June 30, 2019
SAME STORE CASH NOI ⁽¹⁾	Total			New York			San Francisco			Washington, D.C.			Other
PGRE’s share of Cash NOI for the six months ended June 30, 2019	$	184,881		$	135,179		$	42,093		$	9,098		$	(1,489	)
Acquisitions ⁽²⁾		(1,511	)		—			(1,511	)		—			—
Dispositions		—			—			—			—			—
Lease termination income (including our share of unconsolidated joint ventures)		(2,346	)		(2,346	)		—			—			—
Other, net		276			299			(23	)		—			—

PGRE’s share of Same Store Cash NOI ⁽¹⁾ for the six months ended June 30, 2019	$	181,300		$	133,132		$	40,559		$	9,098		$	(1,489	)


	Six Months Ended June 30, 2018
	Total			New York			San Francisco			Washington, D.C.			Other
PGRE’s share of Cash NOI for the six months ended June 30, 2018	$	174,435		$	125,971		$	33,613		$	18,568		$	(3,717	)
Acquisitions		—			—			—			—			—
Dispositions ⁽³⁾		(9,205	)		—			—			(9,205	)		—
Lease termination income (including our share of unconsolidated joint ventures)		(244	)		(244	)		—			—			—
Other, net		174			174			—			—			—

PGRE’s share of Same Store Cash NOI ⁽¹⁾ for the six months ended June 30, 2018	$	165,160		$	125,901		$	33,613		$	9,363		$	(3,717	)


Increase (decrease) in PGRE’s share of Same Store Cash NOI	$	16,140		$	7,231		$	6,946		$	(265	)	$	2,228
% Increase (decrease)		9.8	%		5.7	%		20.7	%		(2.8	%)

⁽¹⁾	See page 43 for our definition of this measure.

⁽²⁾	Represents our share of Cash NOI attributable to acquired properties (111 Sutter Street in San Francisco) for the months in which they were not owned by us in both reporting periods.

⁽³⁾	Represents our share of Cash NOI attributable to sold properties (2099 Pennsylvania Avenue and 425 Eye Street in Washington, D.C.) for the months in which they were not owned by us in both reporting periods.

- 19 -


		SAME STORE RESULTS

(unaudited and in thousands)


	Six Months Ended June 30, 2019
SAME STORE NOI⁽¹⁾	Total			New York			San Francisco			Washington, D.C.			Other
PGRE’s share of NOI for the six months ended June 30, 2019	$	208,081		$	152,773		$	47,955		$	8,887		$	(1,534	)
Acquisitions⁽²⁾		(1,913	)		—			(1,913	)		—			—
Dispositions		—			—			—			—			—
Lease termination income (including our share of unconsolidated joint ventures)		(2,346	)		(2,346	)		—			—			—
Other, net		276			299			(23	)		—			—

PGRE’s share of Same Store NOI ⁽¹⁾ for the six months ended June 30, 2019	$	204,098		$	150,726		$	46,019		$	8,887		$	(1,534	)


	Six Months Ended June 30, 2018
	Total			New York			San Francisco			Washington, D.C.			Other
PGRE’s share of NOI for the six months ended June 30, 2018	$	206,826		$	145,886		$	45,391		$	19,303		$	(3,754	)
Acquisitions		—			—			—			—			—
Dispositions⁽³⁾		(9,824	)		—			—			(9,824	)		—
Lease termination income (including our share of unconsolidated joint ventures)		(244	)		(244	)		—			—			—
Other, net		174			174			—			—			—

PGRE’s share of Same Store NOI⁽¹⁾ for the six months ended June 30, 2018	$	196,932		$	145,816		$	45,391		$	9,479		$	(3,754	)


Increase (decrease) in PGRE’s share of Same Store NOI	$	7,166		$	4,910		$	628		$	(592	)	$	2,220
% Increase (decrease)		3.6	%		3.4	%		1.4	%		(6.2	%)

⁽¹⁾	See page 43 for our definition of this measure.

⁽²⁾	Represents our share of NOI attributable to acquired properties (111 Sutter Street in San Francisco) for the months in which they were not owned by us in both reporting periods.

⁽³⁾	Represents our share of NOI attributable to sold properties (2099 Pennsylvania Avenue and 425 Eye Street in Washington, D.C.) for the months in which they were not owned by us in both reporting periods.

- 20 -


		CONSOLIDATED JOINT VENTURES AND FUND - BALANCE SHEETS

(unaudited and in thousands)


	As of June 30, 2019										As of December 31, 2018
									Consolidated										Consolidated
	Consolidated Joint Ventures								Fund		Consolidated Joint Ventures								Fund
	Total		One		300		PGRESS		Residential		Total		One		300		PGRESS		Residential
	Consolidated		Market		Mission		Equity		Development		Consolidated		Market		Mission		Equity		Development
	Joint Ventures		Plaza		Street ⁽¹⁾		Holdings L.P.		Fund		Joint Ventures		Plaza		Street ⁽¹⁾		Holdings L.P.		Fund
PGRE Ownership				49.0%		31.1%		24.4%		7.4%				49.0%		31.1%		24.4%		7.4%
Assets:
Real estate, net	$	1,693,813	$	1,212,884	$	480,929	$	—	$	—	$	1,699,618	$	1,223,388	$	476,230	$	—	$	—
Cash and cash equivalents		62,833		44,060		17,751		1,022		3,339		54,268		33,976		19,933		359		3,648
Restricted cash		3,398		3,398		—		—		—		5,534		5,534		—		—		—
Preferred equity investments		—		—		—		—		—		36,042		—		—		36,042		—
Investments in unconsolidated joint ventures		—		—		—		—		69,346		—		—		—		—		52,923
Accounts and other receivables, net		1,114		495		619		—		125		1,982		903		1,079		—		125
Deferred rent receivable		55,070		46,928		8,142		—		—		51,926		46,646		5,280		—		—
Deferred charges, net		22,845		11,998		10,847		—		—		14,160		9,433		4,727		—		—
Intangible assets, net		37,501		25,432		12,069		—		—		45,818		29,398		16,420		—		—
Other assets		6,878		6,235		643		—		15,692		949		752		197		—		15,686

Total Assets	$	1,883,452	$	1,351,430	$	531,000	$	1,022	$	88,502	$	1,910,297	$	1,350,030	$	523,866	$	36,401	$	72,382


Liabilities:
Notes and mortgages payable, net	$	1,198,162	$	970,162	$	228,000	$	—	$	—	$	1,197,644	$	969,644	$	228,000	$	—	$	—
Accounts payable and accrued expenses		40,223		25,029		15,118		76		58		24,163		17,716		6,395		52		20
Intangible liabilities, net		25,266		21,914		3,352		—		—		31,582		26,156		5,426		—		—
Other liabilities		4,230		4,227		3		—		—		5		2		3		—		—

Total Liabilities		1,267,881		1,021,332		246,473		76		58		1,253,394		1,013,518		239,824		52		20


Equity:
Paramount Group, Inc. equity		250,293		161,816		87,732		745		6,495		261,908		164,958		87,577		9,373		5,475
Noncontrolling interests		365,278		168,282		196,795		201		81,949		394,995		171,554		196,465		26,976		66,887

Total Equity		615,571		330,098		284,527		946		88,444		656,903		336,512		284,042		36,349		72,362


Total Liabilities and Equity	$	1,883,452	$	1,351,430	$	531,000	$	1,022	$	88,502	$	1,910,297	$	1,350,030	$	523,866	$	36,401	$	72,382

⁽¹⁾	Formerly known as 50 Beale Street.

- 21 -


		CONSOLIDATED JOINT VENTURES AND FUND - OPERATING RESULTS

(unaudited and in thousands)


	Three Months Ended June 30, 2019															Three Months Ended June 30, 2018
													Consolidated														Consolidated
	Consolidated Joint Ventures												Fund			Consolidated Joint Ventures											Fund
	Total			One									Residential			Total			One								Residential
	Consolidated			Market			300 Mission			PGRESS Equity			Development			Consolidated			Market			300 Mission			PGRESS Equity		Development
	Joint Ventures			Plaza			Street			Holdings L.P.			Fund			Joint Ventures			Plaza			Street			Holdings L.P.		Fund
Total revenues	$	46,213		$	34,154		$	12,059		$	—		$	—		$	42,611		$	32,790		$	9,821		$	—	$	7
Total operating expenses		13,188			9,504			3,684			—			—			11,325			8,097			3,228			—		—

Net operating income		33,025			24,650			8,375			—			—			31,286			24,693			6,593			—		7
Depreciation and amortization		(15,558	)		(10,349	)		(5,209	)		—			—			(16,058	)		(11,037	)		(5,021	)		—		—
Interest and other income (loss), net		168			187			38			(57	)		(1	)		1,103			124			62			917		121
Interest and debt expense		(12,273	)		(10,193	)		(2,080	)		—			—			(12,273	)		(10,193	)		(2,080	)		—		—
Income (loss) from unconsolidated joint ventures		—			—			—			—			8			—			—			—			—		(16	)

Net income (loss) before income taxes		5,362			4,295			1,124			(57	)		7			4,058			3,587			(446	)		917		112
Income tax (expense) benefit		(13	)		—			(13	)		—			(1	)		(5	)		1			(6	)		—		3

Net income (loss)	$	5,349		$	4,295		$	1,111		$	(57	)	$	6		$	4,053		$	3,588		$	(452	)	$	917	$	115


PGRE’s share Ownership		Total			49.0%			31.1%			24.4%			7.4%			Total			49.0%			31.1%			24.4%		7.4%

Net income (loss)	$	2,413		$	2,102		$	325		$	(14	)	$	(47	)	$	1,816		$	1,752		$	(159	)	$	223	$	(15	)
Add: Management fee income		528			152			376			—			—			485			157			328			—		(22	)

PGRE’s share of net income (loss)		2,941			2,254			701			(14	)		(47	)		2,301			1,909			169			223		(37	)
Add: Real estate depreciation and amortization		6,689			5,071			1,618			—			—			6,970			5,408			1,562			—		—

FFO/Core FFO ⁽¹⁾	$	9,630		$	7,325		$	2,319		$	(14	)	$	(47	)	$	9,271		$	7,317		$	1,731		$	223	$	(37	)


Noncontrolling interests’ share Ownership		Total			51.0%			68.9%			75.6%			92.6%			Total			51.0%			68.9%			75.6%		92.6%

Net income (loss)	$	2,936		$	2,193		$	786		$	(43	)	$	53		$	2,237		$	1,836		$	(293	)	$	694	$	130
Less: Management fee expense		(528	)		(152	)		(376	)		—			—			(485	)		(157	)		(328	)		—		22

Net income (loss) attributable to noncontrolling interests		2,408			2,041			410			(43	)		53			1,752			1,679			(621	)		694		152
Add: Real estate depreciation and amortization		8,869			5,278			3,591			—			—			9,088			5,629			3,459			—		—

FFO/Core FFO ⁽¹⁾	$	11,277		$	7,319		$	4,001		$	(43	)	$	53		$	10,840		$	7,308		$	2,838		$	694	$	152

⁽¹⁾	See page 43 for our definition of this measure.

- 22 -


		CONSOLIDATED JOINT VENTURES AND FUND - OPERATING RESULTS

(unaudited and in thousands)


	Six Months Ended June 30, 2019														Six Months Ended June 30, 2018
												Consolidated														Consolidated
	Consolidated Joint Ventures											Fund			Consolidated Joint Ventures											Fund
	Total			One								Residential			Total			One								Residential
	Consolidated			Market			300 Mission			PGRESS Equity		Development			Consolidated			Market			300 Mission			PGRESS Equity		Development
	Joint Ventures			Plaza			Street			Holdings L.P.		Fund			Joint Ventures			Plaza			Street			Holdings L.P.		Fund
Total revenues	$	91,870		$	68,033		$	23,837		$	—	$	—		$	83,456		$	64,720		$	18,736		$	—	$	9
Total operating expenses		25,627			18,517			7,110			—		18			21,897			15,619			6,278			—		1

Net operating income (loss) ⁽¹⁾		66,243			49,516			16,727			—		(18	)		61,559			49,101			12,458			—		8
Depreciation and amortization		(31,319	)		(20,990	)		(10,329	)		—		—			(32,264	)		(22,286	)		(9,978	)		—		—
Interest and other income, net		756			268			91			397		88			2,161			216			129			1,816		630
Interest and debt expense		(24,439	)		(20,278	)		(4,161	)		—		—			(24,440	)		(20,279	)		(4,161	)		—		—
Loss from unconsolidated joint ventures		—			—			—			—		(7	)		—			—			—			—		(18	)

Net income (loss) before income taxes		11,241			8,516			2,328			397		63			7,016			6,752			(1,552	)		1,816		620
Income tax (expense) benefit		(19	)		(3	)		(16	)		—		(5	)		(8	)		(2	)		(6	)		—		1

Net income (loss)	$	11,222		$	8,513		$	2,312		$	397	$	58		$	7,008		$	6,750		$	(1,558	)	$	1,816	$	621


PGRE’s share Ownership	Total			49.0%			31.1%			24.4%		7.4%			Total			49.0%			31.1%			24.4%		7.4%
Net income (loss)	$	4,947		$	4,169		$	681		$	97	$	(89	)	$	3,224		$	3,301		$	(519	)	$	442	$	35
Add: Management fee income		1,073			341			732			—		—			977			324			653			—		4

PGRE’s share of net income (loss)		6,020			4,510			1,413			97		(89	)		4,201			3,625			134			442		39
Add: Real estate depreciation and amortization		13,496			10,285			3,211			—		—			14,024			10,920			3,104			—		—

FFO/Core FFO ⁽¹⁾	$	19,516		$	14,795		$	4,624		$	97	$	(89	)	$	18,225		$	14,545		$	3,238		$	442	$	39


Noncontrolling Interests’ share Ownership	Total			51.0%			68.9%			75.6%		92.6%			Total			51.0%			68.9%			75.6%		92.6%
Net income (loss)	$	6,275		$	4,344		$	1,631		$	300	$	147		$	3,784		$	3,449		$	(1,039	)	$	1,374	$	586
Less: Management fee expense		(1,073	)		(341	)		(732	)		—		—			(977	)		(324	)		(653	)		—		(4	)

Net income (loss) attributable to noncontrolling interests		5,202			4,003			899			300		147			2,807			3,125			(1,692	)		1,374		582
Add: Real estate depreciation and amortization		17,823			10,705			7,118			—		—			18,240			11,366			6,874			—		—

FFO/Core FFO ⁽¹⁾	$	23,025		$	14,708		$	8,017		$	300	$	147		$	21,047		$	14,491		$	5,182		$	1,374	$	582

⁽¹⁾	See page 43 for our definition of this measure.

- 23 -


		UNCONSOLIDATED JOINT VENTURES - BALANCE SHEETS

(unaudited and in thousands)


	As of June 30, 2019											As of December 31, 2018
			712 Fifth			111 Sutter		60 Wall						712 Fifth			60 Wall
	Total		Avenue			Street ⁽¹⁾		Street		Other ⁽²⁾		Total		Avenue			Street		Other ⁽¹⁾

PGRE Ownership				50.0%			49.0%		5.0%		Various				50.0%			5.0%		Various
Assets:
Real estate, net	$	1,463,668	$	205,919		$	213,759	$	842,936	$	201,054	$	1,236,989	$	202,289		$	852,951	$	181,749
Cash and cash equivalents		52,430		28,318			2,398		16,551		5,163		48,076		28,911			17,512		1,653
Restricted cash		4,527		1,828			2,467		—		232		2,758		2,526			—		232
Accounts and other receivables, net		2,618		1,423			611		584		—		6,329		6,329			—		—
Deferred rent receivable		16,242		14,610			275		1,357		—		15,206		13,618			1,588		—
Deferred charges, net		7,118		7,118			—		—		—		6,575		6,575			—		—
Intangible assets, net		97,811		—			14,535		83,276		—		97,658		—			97,658		—
Other assets		12,123		8,009			220		35		3,859		12,608		7,770			35		4,803

Total Assets	$	1,656,537	$	267,225		$	234,265	$	944,739	$	210,308	$	1,426,199	$	268,018		$	969,744	$	188,437


Liabilities:
Notes and mortgages payable, net	$	1,022,881	$	296,748		$	135,897	$	570,405	$	19,831	$	887,882	$	296,543		$	569,536	$	21,803
Accounts payable and accrued expenses		24,901		5,486			3,493		7,680		8,242		18,734		6,251			7,631		4,852
Intangible liabilities, net		5,277		—			5,277		—		—		—		—			—		—
Other liabilities		1,641		334			12		847		448		3,576		445			850		2,281

Total Liabilities		1,054,700		302,568			144,679		578,932		28,521		910,192		303,239			578,017		28,936


Total Equity		601,837		(35,343	)		89,586		365,807		181,787		516,007		(35,221	)		391,727		159,501


Total Liabilities and Equity	$	1,656,537	$	267,225		$	234,265	$	944,739	$	210,308	$	1,426,199	$	268,018		$	969,744	$	188,437

⁽¹⁾	Acquired on February 7, 2019.

⁽²⁾	Represents Oder-Center, Germany and One Steuart Lane.

- 24 -


		UNCONSOLIDATED JOINT VENTURES - OPERATING RESULTS

(unaudited and in thousands)


	Three Months Ended June 30, 2019															Three Months Ended June 30, 2018
				712 Fifth			111 Sutter			60 Wall									712 Fifth			60 Wall
	Total			Avenue			Street ⁽¹⁾			Street			Other⁽²⁾			Total			Avenue			Street			Other⁽²⁾
Total revenues	$	36,848		$	10,886		$	4,119		$	20,647		$	1,196		$	35,373		$	13,733		$	20,516		$	1,124
Total operating expenses		15,274			6,510			1,645			6,757			362			13,078			6,126			6,733			219

Net operating income		21,574			4,376			2,474			13,890			834			22,295			7,607			13,783			905
Depreciation and amortization		(15,082	)		(2,707	)		(3,244	)		(9,033	)		(98	)		(12,032	)		(2,898	)		(9,033	)		(101	)
Interest and other income, net		201			175			—			26			—			198			157			41			—
Interest and debt expense		(12,323	)		(2,673	)		(1,780	)		(7,634	)		(236	)		(9,733	)		(2,674	)		(6,800	)		(259	)

Net (loss) income before income taxes		(5,630	)		(829	)		(2,550	)		(2,751	)		500			728			2,192			(2,009	)		545
Income tax expense		—			—			—			—			—			—			—			—			—

Net (loss) income	$	(5,630	)	$	(829	)	$	(2,550	)	$	(2,751	)	$	500		$	728		$	2,192		$	(2,009	)	$	545


PGRE’s share Ownership	Total			50.0%			49.0%			5.0%			Various			Total			50.0%			5.0%			Various
Net (loss) income	$	(1,748	)	$	(414	)	$	(1,249	)	$	(138	)	$	53		$	1,036		$	1,096		$	(102	)	$	42
Less: Step-up basis adjustment		(39	)		—			—			(11	)		(28	)		(27	)		—			—			(27	)
Add: Distributions in excess of earnings		1,331			1,331			—			—			—			1,512			1,512			—			—

PGRE’s share of net (loss) income		(456	)		917			(1,249	)		(149	)		25			2,521			2,608			(102	)		15
Less: Noncontrolling interests		(7	)		—			—			—			(7	)		—			—			—			—
Add: Real estate depreciation and amortization		3,444			1,354			1,589			463			38			1,936			1,449			452			35

FFO ⁽³⁾		2,981			2,271			340			314			56			4,457			4,057			350			50
Less: Distributions in excess of earnings		(1,331	)		(1,331	)		—			—			—			(1,512	)		(1,512	)		—			—

Core FFO⁽³⁾	$	1,650		$	940		$	340		$	314		$	56		$	2,945		$	2,545		$	350		$	50


Joint Venture Partners’ share Ownership	Total			50.0%			51.0%			95.0%			Various			Total			50.0%			95.0%			Various
Net (loss) income	$	(3,882	)	$	(415	)	$	(1,301	)	$	(2,613	)	$	447		$	(308	)	$	1,096		$	(1,907	)	$	503
Add: Real estate depreciation and amortization		11,666			1,353			1,655			8,570			88			10,123			1,449			8,581			93

FFO/Core FFO ⁽³⁾	$	7,784		$	938		$	354		$	5,957		$	535		$	9,815		$	2,545		$	6,674		$	596

⁽¹⁾	Acquired on February 7, 2019.

⁽²⁾	Represents Oder-Center, Germany and One Steuart Lane.

⁽³⁾	See page 43 for our definition of this measure.

- 25 -


		UNCONSOLIDATED JOINT VENTURES - OPERATING RESULTS

(unaudited and in thousands)


	Six Months Ended June 30, 2019															Six Months Ended June 30, 2018
				712 Fifth			111 Sutter			60 Wall									712 Fifth			60 Wall
	Total			Avenue			Street ⁽¹⁾			Street			Other ⁽²⁾			Total			Avenue			Street			Other ⁽²⁾
Total revenues	$	75,170		$	25,080		$	6,616		$	41,276		$	2,198		$	71,344		$	27,865		$	40,959		$	2,520
Total operating expenses		29,677			12,781			2,713			13,501			682			26,605			12,310			13,473			822

Net operating income ⁽³⁾		45,493			12,299			3,903			27,775			1,516			44,739			15,555			27,486			1,698
Depreciation and amortization		(29,207	)		(5,537	)		(5,407	)		(18,066	)		(197	)		(24,193	)		(5,924	)		(18,066	)		(203	)
Interest and other income, net		299			268			9			22			—			368			270			97			1
Interest and debt expense		(23,850	)		(5,319	)		(2,834	)		(15,220	)		(477	)		(18,912	)		(5,319	)		(13,070	)		(523	)

Net (loss) income before income taxes		(7,265	)		1,711			(4,329	)		(5,489	)		842			2,002			4,582			(3,553	)		973
Income tax expense		(8	)		—			—			—			(8	)		(10	)		—			—			(10	)

Net (loss) income	$	(7,273)		$	1,711		$	(4,329)		$	(5,489)		$	834		$	1,992		$	4,582		$	(3,553)		$	963


PGRE’s share: Ownership	Total			50.0%			49.0%			5.0%			Various			Total			50.0%			5.0%			Various
Net (loss) income	$	(1,466	)	$	856		$	(2,121	)	$	(275	)	$	74		$	2,197		$	2,291		$	(175	)	$	81
Less: Step-up basis adjustment		(78	)		—			—			(23	)		(55	)		(55	)		—			—			(55	)
Add: Distributions in excess of earnings		61			61			—			—			—			317			317			—			—

PGRE’s share of net (loss) income		(1,483	)		917			(2,121	)		(298	)		19			2,459			2,608			(175	)		26
Add: Noncontrolling interests		6			—			—			—			6			—			—			—			—
Add: Real estate depreciation and amortization		6,420			2,769			2,649			928			74			3,940			2,962			905			73

FFO ⁽³⁾		4,943			3,686			528			630			99			6,399			5,570			730			99
Less: Distributions in excess of earnings		(61	)		(61	)		—			—			—			(317	)		(317	)		—			—

Core FFO⁽³⁾	$	4,882		$	3,625		$	528		$	630		$	99		$	6,082		$	5,253		$	730		$	99


Joint Venture Partners’ share: Ownership	Total			50.0%			51.0%			95.0%			Various			Total			50.0%			95.0%			Various
Net (loss) income	$	(5,807	)	$	855		$	(2,208	)	$	(5,214	)	$	760		$	(205	)	$	2,291		$	(3,378	)	$	882
Add: Real estate depreciation and amortization		22,842			2,768			2,758			17,138			178			20,308			2,962			17,161			185

FFO/Core FFO ⁽³⁾	$	17,035		$	3,623		$	550		$	11,924		$	938		$	20,103		$	5,253		$	13,783		$	1,067

⁽¹⁾	Acquired on February 7, 2019.

⁽²⁾	Represents Oder-Center, Germany and One Steuart Lane.

⁽³⁾	See page 43 for our definition of this measure.

- 26 -


		UNCONSOLIDATED FUNDS SUMMARY

(unaudited and in thousands)

Debt Fund Platform:

Paramount Group Real Estate Fund VIII L.P. (“Fund VIII”) and Paramount Group Real Estate Fund X, L.P. (“Fund X”)

The following is a summary of our debt funds, as of June 30, 2019.


	Debt Fund Platform									Interest
	Fund VIII ⁽¹⁾			Fund X ⁽¹⁾			Total			Rate ⁽²⁾			Maturity ⁽³⁾
Committed capital	$	775,200		$	172,000		$	947,200
Invested and/or reserved for future funding		(699,553	)		(170,000	)		(869,553	)		7.10	%		Oct 2019 - Dec 2027

Available for future investments	$	75,647		$	2,000		$	77,647

⁽¹⁾	As of June 30, 2019, PGRE’s ownership interest is 1.3% and 8.7% of Fund VIII and Fund X, respectively.

⁽²⁾	Represents the weighted average interest rate comprised of fixed and variable rate debt as of June 30, 2019.

⁽³⁾	Represents the range of maturity dates for all underlying investments as of June 30, 2019.

- 27 -


		CAPITAL STRUCTURE

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


					As of June 30, 2019
Debt:
Consolidated debt:
Notes and mortgages payable ⁽¹⁾					$	3,599,800
$1.0 billion Revolving Credit Facility						170,000

						3,769,800
Less:
Noncontrolling interests’ share of consolidated debt (One Market Plaza and 300 Mission Street)						(654,342	)
Add:
PGRE’s share of unconsolidated joint venture debt (712 Fifth Avenue, 111 Sutter Street, 60 Wall Street and Oder-Center, Germany)						248,410

PGRE’s share of total debt ⁽²⁾						3,363,868


	Shares / Units		Share Price as of
	Outstanding		June 30, 2019
Equity:
Common stock		234,123,611	$	14.01		3,280,072
Operating Partnership units		24,780,150		14.01		347,170

Total equity		258,903,761		14.01		3,627,242


Total Market Capitalization					$	6,991,110

⁽¹⁾	Represents contractual amount due pursuant to the respective debt agreements.

⁽²⁾	See page 43 for our definition of this measure.

- 28 -


		DEBT ANALYSIS

(unaudited and in thousands)


	Total Debt						Fixed Rate Debt						Variable Rate Debt
	Amount			Rate			Amount			Rate			Amount			Rate
Consolidated Debt:
1633 Broadway	$	1,046,800			3.57	%	$	1,000,000			3.54	%	$	46,800			4.19	%
1301 Avenue of the Americas		850,000			3.56	%		500,000			3.05	%		350,000			4.30	%
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		228,000			3.65	%		228,000			3.65	%		—			—
Revolving Credit Facility		170,000			3.67	%		—			—			170,000			3.67	%

Total consolidated debt		3,769,800			3.73	%		3,203,000			3.66	%		566,800			4.10	%
Noncontrolling interests’ share		(654,342	)		3.94	%		(654,342	)		3.94	%		—			—

PGRE’s share of consolidated debt ⁽¹⁾	$	3,115,458			3.68	%	$	2,548,658			3.59	%	$	566,800			4.10	%


Unconsolidated Joint Venture Debt:
712 Fifth Avenue	$	300,000			3.39	%	$	300,000			3.39	%	$	—			—
111 Sutter Street ⁽²⁾		138,200			4.59	%		—			—			138,200			4.59	%
60 Wall Street		575,000			4.84	%		—			—			575,000			4.84	%
Oder-Center, Germany		19,831			4.62	%		19,831			4.62	%		—			—

Total unconsolidated debt		1,033,031			4.38	%		319,831			3.47	%		713,200			4.79	%

Joint venture partners’ share		(784,621	)		4.54	%		(167,947	)		3.52	%		(616,674	)		4.82	%

PGRE’s share of unconsolidated debt ⁽¹⁾	$	248,410			3.90	%	$	151,884			3.41	%	$	96,526			4.67	%


PGRE’s share of Total Debt ⁽¹⁾	$	3,363,868			3.70	%	$	2,700,542			3.58	%	$	663,326			4.18	%


	Required		Actual
Revolving Credit Facility Covenants: ⁽³⁾
Total Debt / Total Assets		Less than 60%		41.9	%
Secured Debt / Total Assets		Less than 50%		39.8	%
Fixed Charge Coverage		Greater than 1.5x		3.6	x
Unsecured Debt / Unencumbered Assets		Less than 60%		10.3	%
Unencumbered Interest Coverage		Greater than 1.75x		45.4	x


	Amount		%
Debt Composition:
Fixed rate debt:
PGRE’s consolidated fixed rate debt	$	2,548,658
PGRE’s unconsolidated fixed rate debt		151,884

Total fixed rate debt		2,700,542		80.3	%

Variable rate debt:
PGRE’s consolidated variable rate debt		566,800
PGRE’s unconsolidated variable rate debt		96,526

Total variable rate debt		663,326		19.7	%

PGRE’s share of Total Debt ⁽²⁾	$	3,363,868		100.0	%

⁽¹⁾	See page 43 for our definition of this measure.

⁽²⁾	In connection with the acquisition of 111 Sutter Street on February 7, 2019, the joint venture completed a financing of the property. The four-year loan is interest only at LIBOR plus 215 basis points and has three one-year extension options.

⁽³⁾

This section presents ratios as of June 30, 2019 in accordance with the terms of our revolving credit facility, 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 testing our compliance with the revolving credit facility.

- 29 -


		DEBT MATURITIES

(unaudited and in thousands)


	2019			2020			2021			2022			2023			Thereafter			Total
Consolidated Debt:
1301 Avenue of the Americas	$	—		$	—		$	850,000		$	—		$	—		$	—		$	850,000
300 Mission Street		—			—			228,000			—			—			—			228,000
1633 Broadway		—			—			—			1,046,800			—			—			1,046,800
One Market Plaza		—			—			—			—			—			975,000			975,000
31 West 52nd Street		—			—			—			—			—			500,000			500,000
Revolving Credit Facility		—			—			—			170,000			—			—			170,000

Total consolidated debt		—			—			1,078,000			1,216,800			—			1,475,000			3,769,800
Noncontrolling interests’ share		—			—			(157,092	)		—			—			(497,250	)		(654,342	)

PGRE’s share of consolidated debt ⁽¹⁾	$	—		$	—		$	920,908		$	1,216,800		$	—		$	977,750		$	3,115,458


Unconsolidated Joint Venture Debt:
712 Fifth Avenue	$	—		$	—		$	—		$	—		$	—		$	300,000		$	300,000
111 Sutter Street		—			—			—			—			138,200			—			138,200
60 Wall Street		—			—			—			575,000			—			—			575,000
Oder-Center, Germany		—			—			—			19,831			—			—			19,831

Total unconsolidated debt		—			—			—			594,831			138,200			300,000			1,033,031
Joint venture partners’ share		—			—			—			(564,139	)		(70,482	)		(150,000	)		(784,621	)

PGRE’s share of unconsolidated debt ⁽¹⁾	$	—		$	—		$	—		$	30,692		$	67,718		$	150,000		$	248,410


PGRE’s share of total debt ⁽¹⁾	$	—		$	—		$	920,908		$	1,247,492		$	67,718		$	1,127,750		$	3,363,868


Weighted average rate		—	%		—	%		3.57	%		3.61	%		4.59	%		3.84	%		3.70	%


% of debt maturing		—	%		—	%		27.4	%		37.1	%		2.0	%		33.5	%		100.0	%

⁽¹⁾	See page 43 for our definition of this measure.

- 30 -


		PORTFOLIO SUMMARY

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


													Annualized Rent ⁽¹⁾
Property	Submarket	Paramount Ownership			Square Feet		% Leased ⁽¹⁾			% Occupied ⁽¹⁾			Amount		Per Square Foot ⁽²⁾
As of June 30, 2019
New York:
1633 Broadway	West Side		100.0	%		2,496,649		98.4	%		94.1	%	$	170,464	$	74.29
1301 Avenue of the Americas	Sixth Avenue / Rock Center		100.0	%		1,781,571		97.9	%		97.9	%		135,417		78.16
1325 Avenue of the Americas	Sixth Avenue / Rock Center		100.0	%		809,297		97.5	%		96.3	%		51,736		67.88
31 West 52nd Street	Sixth Avenue / Rock Center		100.0	%		763,140		97.5	%		97.5	%		68,203		89.15
900 Third Avenue	East Side		100.0	%		594,121		93.5	%		92.7	%		39,788		72.52
712 Fifth Avenue	Madison / Fifth Avenue		50.0	%		543,411		72.0	%		71.4	%		43,997		113.66
60 Wall Street	Downtown		5.0	%		1,625,483		100.0	%		100.0	%		73,600		45.28	⁽³⁾

Subtotal / Weighted average						8,613,672		96.4	%		95.0	%		583,205		71.80

PGRE’s share						6,797,921		96.6	%		94.8	%		491,294		77.14


San Francisco:
One Market Plaza	South Financial District		49.0	%		1,580,295		99.3	%		99.0	%		132,367		83.47
One Front Street	North Financial District		100.0	%		643,659		100.0	%		86.3	%		42,001		74.86
300 Mission Street	South Financial District		31.1	%		665,933		99.7	%		96.5	%		41,441		64.79
111 Sutter Street ⁽⁴⁾	North Financial District		49.0	%		284,357		70.3	%		70.3	%		14,187		71.50

Subtotal / Weighted average						3,174,244		96.9	%		93.3	%		229,996		77.04

PGRE’s share						1,764,444		97.3	%		91.8	%		126,701		77.51


Washington, D.C.:
1899 Pennsylvania Avenue	CBD		100.0	%		190,955		90.4	%		90.4	%		14,777		85.21
Liberty Place	East End		100.0	%		172,541		98.2	%		95.8	%		14,468		87.37

Subtotal / Weighted average						363,496		94.1	%		93.0	%		29,245		86.26

PGRE’s share						363,496		94.1	%		93.0	%		29,245		86.26


Total / Weighted average						12,151,412		96.5	%		94.5	%	$	842,446	$	73.60

PGRE’s share						8,925,861		96.7	%		94.1	%	$	647,240	$	77.59

(1)	See page 43 for our definition of this measure.

(2)	Represents office and retail space only.

(3)	Represents “triple-net” rent.

(4)	Acquired on February 7, 2019.

- 31 -


		SAME STORE LEASED OCCUPANCY

(unaudited)


				As of June 30, 2019						As of March 31, 2019						Change in Same Store Leased %
Property	Paramount Ownership			Leased % ⁽¹⁾			Same Store Leased % ⁽¹⁾			Leased % ⁽¹⁾			Same Store Leased % ⁽¹⁾			Change in Same Store Leased %

New York:
1633 Broadway		100.0	%		98.4	%		98.4	%		98.4	%		98.4	%		—	%
1301 Avenue of the Americas		100.0	%		97.9	%		97.9	%		97.9	%		97.9	%		—	%
1325 Avenue of the Americas		100.0	%		97.5	%		97.5	%		98.0	%		98.0	%		(0.5	%)
31 West 52nd Street		100.0	%		97.5	%		97.5	%		97.5	%		97.5	%		—	%
900 Third Avenue		100.0	%		93.5	%		93.5	%		92.8	%		92.8	%		0.7	%
712 Fifth Avenue		50.0	%		72.0	%		72.0	%		70.8	%		70.8	%		1.2	%
60 Wall Street		5.0	%		100.0	%		100.0	%		100.0	%		100.0	%		—	%

Weighted average					96.4	%		96.4	%		96.4	%		96.4	%		—	%

PGRE’s share					96.6	%		96.6	%		96.6	%		96.6	%		—	%


San Francisco:
One Market Plaza		49.0	%		99.3	%		99.3	%		99.2	%		99.2	%		0.1	%
One Front Street		100.0	%		100.0	%		100.0	%		92.0	%		92.0	%		8.0	%
300 Mission Street		31.1	%		99.7	%		99.7	%		99.7	%		99.7	%		—	%
111 Sutter Street		49.0	%		70.3	%		70.3	%		70.6	%		70.6	%		(0.3	%)

Weighted average					96.9	%		96.9	%		95.3	%		95.3	%		1.6	%

PGRE’s share					97.3	%		97.3	%		94.4	%		94.4	%		2.9	%


Washington, D.C.:
1899 Pennsylvania Avenue		100.0	%		90.4	%		90.4	%		90.4	%		90.4	%		—	%
Liberty Place		100.0	%		98.2	%		98.2	%		98.0	%		98.0	%		0.2	%

Weighted average					94.1	%		94.1	%		94.0	%		94.0	%		0.1	%

PGRE’s share					94.1	%		94.1	%		94.0	%		94.0	%		0.1	%


Weighted average					96.5	%		96.5	%		96.0	%		96.0	%		0.5	%

PGRE’s share					96.7	%		96.7	%		96.0	%		96.0	%		0.7	%

⁽¹⁾	See page 43 for our definition of this measure.

- 32 -


		SAME STORE LEASED OCCUPANCY

(unaudited)


				As of June 30, 2019						As of December 31, 2018						Change in Same Store Leased %
Property	Paramount Ownership			Leased % ⁽¹⁾			Same Store Leased % ⁽¹⁾			Leased % ⁽¹⁾			Same Store Leased % ⁽¹⁾			Change in Same Store Leased %

New York:
1633 Broadway		100.0	%		98.4	%		98.4	%		95.4	%		95.4	%		3.0	%
1301 Avenue of the Americas		100.0	%		97.9	%		97.9	%		97.9	%		97.9	%		—	%
1325 Avenue of the Americas		100.0	%		97.5	%		97.5	%		96.7	%		96.7	%		0.8	%
31 West 52nd Street		100.0	%		97.5	%		97.5	%		97.5	%		97.5	%		—	%
900 Third Avenue		100.0	%		93.5	%		93.5	%		92.6	%		92.6	%		0.9	%
712 Fifth Avenue		50.0	%		72.0	%		72.0	%		88.4	%		88.4	%		(16.4	%)
60 Wall Street		5.0	%		100.0	%		100.0	%		100.0	%		100.0	%		—	%

Weighted average					96.4	%		96.4	%		96.5	%		96.5	%		(0.1	%)

PGRE’s share					96.6	%		96.6	%		96.0	%		96.0	%		0.6	%


San Francisco:
One Market Plaza		49.0	%		99.3	%		99.3	%		99.0	%		99.0	%		0.3	%
One Front Street		100.0	%		100.0	%		100.0	%		96.3	%		96.3	%		3.7	%
300 Mission Street		31.1	%		99.7	%		99.7	%		99.7	%		99.7	%		—	%
111 Sutter Street ⁽²⁾		49.0	%		70.3	%		—	%		—	%		—	%		—	%

Weighted average					96.9	%		99.6	%		98.5	%		98.5	%		1.1	%

PGRE’s share					97.3	%		99.6	%		98.0	%		98.0	%		1.6	%


Washington, D.C.:
1899 Pennsylvania Avenue		100.0	%		90.4	%		90.4	%		100.0	%		100.0	%		(9.6	%)
Liberty Place		100.0	%		98.2	%		98.2	%		95.8	%		95.8	%		2.4	%

Weighted average					94.1	%		94.1	%		98.0	%		98.0	%		(3.9	%)

PGRE’s share					94.1	%		94.1	%		98.0	%		98.0	%		(3.9	%)


Weighted average					96.5	%		97.1	%		97.0	%		97.0	%		0.1	%

PGRE’s share					96.7	%		97.1	%		96.4	%		96.4	%		0.7	%

⁽¹⁾	See page 43 for our definition of this measure.

⁽²⁾	Acquired on February 7, 2019.

- 33 -


		TOP TENANTS AND INDUSTRY DIVERSIFICATION

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


									PGRE’s Share of
	Property		Lease Expiration			Total Square Feet Occupied			Total Square Feet Occupied			% of Total Square Feet			Annualized Rent ⁽¹⁾				% of Annualized Rent
	Property		Lease Expiration			Total Square Feet Occupied			Total Square Feet Occupied			% of Total Square Feet			Amount		Per Square Foot		% of Annualized Rent
Top 10 Tenants:
As of June 30, 2019
Barclays Capital, Inc.		1301 Avenue of the Americas		Dec-2020			497,418			497,418			5.6	%	$	32,713	$	65.77		5.1	%
Allianz Global Investors, LP		1633 Broadway		Jan-2031			320,911			320,911			3.6	%		28,963		90.25		4.5	%
Clifford Chance LLP		31 West 52nd Street		Jun-2024			328,992			328,992			3.7	%		26,879		81.70		4.2	%
Credit Agricole Corporate & Investment Bank		1301 Avenue of the Americas		Feb-2023			312,679			312,679			3.5	%		26,872		85.94		4.2	%
Norton Rose Fulbright		1301 Avenue of the Americas		Sep-2034	⁽²⁾		320,325	⁽²⁾		320,325	⁽²⁾		3.6	%		25,596		79.91		4.0	%
Morgan Stanley & Company		1633 Broadway		Mar-2032			260,829			260,829			2.9	%		19,672		75.42		3.0	%
First Republic Bank		One Front Street		Jun-2025			250,651			250,651			2.8	%		17,931		71.54		2.8	%
WMG Acquisition Corp. (Warner Music Group)		1633 Broadway		Jul-2029			293,888			293,888			3.3	%		17,641		60.03		2.7	%
Showtime Networks, Inc.		1633 Broadway		Jan-2026			261,196			261,196			2.9	%		16,428		62.90		2.5	%
Kasowitz Benson Torres & Friedman, LLP		1633 Broadway		Mar-2037			203,394			203,394			2.3	%		14,789		72.71		2.3	%


	PGRE’s Share of
	Square Feet Occupied		% of Occupied Square Feet			Annualized Rent ⁽¹⁾		% of Annualized Rent
Industry Diversification:
As of June 30, 2019
Legal Services		1,866,093		22.3	%	$	148,144		22.9	%
Financial Services—Commercial and Investment Banking		1,820,234		21.8	%		135,079		20.9	%
Technology and Media		1,665,089		19.9	%		118,470		18.3	%
Financial Services, all others		982,729		11.7	%		87,512		13.5	%
Insurance		554,400		6.6	%		45,705		7.1	%
Retail		173,216		2.1	%		16,575		2.6	%
Consumer Products		197,138		2.4	%		15,396		2.4	%
Travel & Leisure		203,575		2.4	%		14,082		2.2	%
Real Estate		136,734		1.6	%		11,279		1.7	%
Other		769,297		9.2	%		54,998		8.4	%

⁽¹⁾	See page 43 for our definition of this measure.

⁽²⁾	116,462 of the square feet leased expires on March 31, 2032.

- 34 -


		LEASING ACTIVITY ⁽¹⁾

(unaudited)


	Total			New York			San Francisco			Washington, D.C.
Three Months Ended June 30, 2019

Total square feet leased		696,497			142,120			550,752			3,625

PGRE’s share of total square feet leased:		497,300			135,728			357,947			3,625
Initial rent ⁽²⁾	$	89.38		$	82.22		$	91.96		$	88.52
Weighted average lease term (in years)		8.6			5.2			9.9			10.8
Tenant improvements and leasing commissions:
Per square foot	$	93.84		$	48.97		$	109.58		$	125.99
Per square foot per annum	$	10.85		$	9.36		$	11.12		$	11.63
Percentage of initial rent		12.1	%		11.4	%		12.1	%		13.1	%
Rent concessions:
Average free rent period (in months)		3.7			4.7			3.3			10.0
Average free rent period per annum (in months)		0.4			0.9			0.3			0.9

Second generation space: ⁽²⁾
Square feet		488,092			129,335			355,132			3,625
Cash basis:
Initial rent ⁽²⁾	$	89.40		$	81.93		$	91.95		$	88.52
Prior escalated rent ⁽²⁾	$	71.52		$	78.67		$	68.94		$	85.68
Percentage increase		25.0	%		4.1	%		33.4	%		3.3	%
GAAP basis:
Straight-line rent	$	94.74		$	76.60		$	100.95		$	91.58
Prior straight-line rent	$	77.91		$	77.69		$	77.94		$	82.15
Percentage increase (decrease)		21.6	%		(1.4	%)		29.5	%		11.5	%

⁽¹⁾	The leasing statistics, except for square feet leased, represent office space only.

⁽²⁾	See page 43 for our definition of this measure.

- 35 -


		LEASING ACTIVITY ⁽¹⁾

(unaudited)


	Total			New York			San Francisco			Washington, D.C.
Six Months Ended June 30, 2019

Total square feet leased		1,049,759			301,708			734,716			13,335

PGRE’s share of total square feet leased:		745,188			278,221			453,632			13,335
Initial rent ⁽²⁾	$	92.03		$	87.24		$	94.99		$	88.32
Weighted average lease term (in years)		9.5			10.0			9.2			8.0
Tenant improvements and leasing commissions:
Per square foot	$	100.28		$	103.54		$	99.52		$	60.06
Per square foot per annum	$	10.56		$	10.32		$	10.79		$	7.51
Percentage of initial rent		11.5	%		11.8	%		11.4	%		8.5	%
Rent concessions:
Average free rent period (in months)		5.9			9.9			3.4			8.1
Average free rent period per annum (in months)		0.6			1.0			0.4			1.0

Second generation space: ⁽²⁾
Square feet		668,254			207,050			450,511			10,693
Cash basis:
Initial rent ⁽²⁾	$	92.83		$	88.16		$	94.99		$	88.49
Prior escalated rent ⁽²⁾	$	78.36		$	88.92		$	73.56		$	84.73
Percentage increase (decrease)		18.5	%		(0.9	%)		29.1	%		4.4	%
GAAP basis:
Straight-line rent	$	97.41		$	83.96		$	103.54		$	88.62
Prior straight-line rent	$	81.84		$	86.15		$	79.95		$	81.72
Percentage increase (decrease)		19.0	%		(2.5	%)		29.5	%		8.4	%

⁽¹⁾	The leasing statistics, except for square feet leased, represent office space only.

⁽²⁾	See page 43 for our definition of this measure.

- 36 -


		LEASE EXPIRATIONS - TOTAL PORTFOLIO

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


	Total Square Feet of Expiring Leases		PGRE’s Share of
Year of Lease Expiration ⁽²⁾			Square Feet of Expiring Leases		Annualized Rent ⁽¹⁾				% of Annualized Rent
Year of Lease Expiration ⁽²⁾			Square Feet of Expiring Leases		Amount		Per Square Foot ⁽³⁾		% of Annualized Rent

Month to Month		51,437		42,232	$	2,183	$	58.98		0.3	%


3Q 2019		85,660		82,772		6,320		74.63		0.9	%
4Q 2019		126,539		106,205		9,316		87.64		1.4	%

Total 2019		212,199		188,977		15,636		82.05		2.3	%

1Q 2020		94,893		68,435		5,706		77.12		0.8	%
2Q 2020		97,093		58,205		5,220		96.62		0.8	%
Remaining 2020		187,900		144,774		10,301		71.29		1.5	%

Total 2020		379,886		271,414		21,227		77.91		3.1	%
2021		1,316,234		1,106,038		76,476		70.36		11.2	%
2022		2,130,077		396,964		27,498		81.53		4.0	%
2023		763,820		702,828		56,761		83.95		8.3	%
2024		688,631		645,433		51,421		79.88		7.5	%
2025		1,127,088		775,480		62,028		80.03		9.1	%
2026		939,616		737,261		57,281		74.67		8.4	%
2027		231,799		164,723		13,521		82.07		2.0	%
2028		216,489		193,575		15,303		79.61		2.2	%
Thereafter		3,667,167		3,399,889		283,441		83.09		41.6	%

⁽¹⁾	See page 43 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.

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		LEASE EXPIRATIONS - NEW YORK

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


	Total Square Feet of Expiring Leases		PGRE’s Share of
Year of Lease Expiration ⁽²⁾			Square Feet of Expiring Leases		Annualized Rent ⁽¹⁾				% of Annualized Rent
Year of Lease Expiration ⁽²⁾			Square Feet of Expiring Leases		Amount		Per Square Foot ⁽³⁾		% of Annualized Rent

Month to Month		27,372		25,796	$	1,514	$	62.34		0.3	%


3Q 2019		79,414		77,742		6,260		78.83		1.2	%
4Q 2019		87,382		86,031		7,850		91.15		1.6	%

Total 2019		166,796		163,773		14,110		85.41		2.8	%

1Q 2020		44,156		34,175		2,586		75.67		0.5	%
2Q 2020		43,277		31,836		2,768		99.83		0.6	%
Remaining 2020		125,062		102,415		7,325		71.67		1.4	%

Total 2020		212,495		168,426		12,679		77.27		2.5	%
2021		885,862		878,192		60,044		70.37		12.0	%
2022		1,791,733		234,355		12,947		71.17		2.6	%
2023		554,599		525,646		40,814		81.88		8.1	%
2024		568,012		561,201		43,772		78.21		8.7	%
2025		262,733		224,149		19,591		87.40		3.9	%
2026		593,777		572,355		43,898		72.79		8.7	%
2027		85,378		85,378		7,234		84.73		1.4	%
2028		147,554		136,133		10,979		81.25		2.2	%
Thereafter		3,008,663		2,989,993		234,215		77.98		46.8	%

⁽¹⁾	See page 43 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.

- 38 -


		LEASE EXPIRATIONS - SAN FRANCISCO

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


	Total Square Feet of Expiring Leases		PGRE’s Share of
Year of Lease Expiration ⁽²⁾			Square Feet of Expiring Leases		Annualized Rent ⁽¹⁾				% of Annualized Rent
Year of Lease Expiration ⁽²⁾			Square Feet of Expiring Leases		Amount		Per Square Foot ⁽³⁾		% of Annualized Rent

Month to Month		17,911		10,282	$	669	$	45.49		0.4	%


3Q 2019		2,384		1,168		60		51.41		0.0	%
4Q 2019		36,696		17,713		1,251		70.60		0.8	%

Total 2019		39,080		18,881		1,311		69.41		0.8	%

1Q 2020		29,602		13,125		1,313		66.11		0.9	%
2Q 2020		53,816		26,369		2,452		93.21		1.6	%
Remaining 2020		58,728		38,249		2,610		68.39		1.7	%

Total 2020		142,146		77,743		6,375		76.55		4.2	%
2021		417,690		215,164		14,906		69.41		9.8	%
2022		313,737		138,002		12,573		91.16		8.3	%
2023		72,005		39,966		3,753		93.90		2.5	%
2024		100,168		63,781		5,672		89.11		3.7	%
2025		814,965		501,941		37,841		75.45		25.0	%
2026		317,593		136,660		11,253		82.32		7.4	%
2027		131,526		64,450		4,937		76.52		3.3	%
2028		59,658		48,165		3,537		73.92		2.3	%
Thereafter		650,818		402,210		48,554		120.72		32.3	%

⁽¹⁾	See page 43 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.

- 39 -


		LEASE EXPIRATIONS - WASHINGTON, D.C.

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


	Total Square Feet of Expiring Leases		PGRE’s Share of
Year of Lease Expiration ⁽²⁾			Square Feet of Expiring Leases		Annualized Rent ⁽¹⁾				% of Annualized Rent
Year of Lease Expiration ⁽²⁾			Square Feet of Expiring Leases		Amount		Per Square Foot ⁽³⁾		% of Annualized Rent

Month to Month		6,154		6,154	$	—	$	—		—	%


3Q 2019		3,862		3,862		—		—		—	%
4Q 2019		2,461		2,461		215		87.49		0.7	%

Total 2019		6,323		6,323		215		34.05		0.7	%

1Q 2020		21,135		21,135		1,807		85.51		6.1	%
2Q 2020		—		—		—		—		—	%
Remaining 2020		4,110		4,110		366		88.90		1.2	%

Total 2020		25,245		25,245		2,173		86.06		7.3	%
2021		12,682		12,682		1,526		85.42		5.2	%
2022		24,607		24,607		1,978		80.38		6.7	%
2023		137,216		137,216		12,194		87.74		41.2	%
2024		20,451		20,451		1,977		97.19		6.7	%
2025		49,390		49,390		4,596		93.06		15.5	%
2026		28,246		28,246		2,130		75.40		7.2	%
2027		14,895		14,895		1,350		90.62		4.6	%
2028		9,277		9,277		787		84.86		2.7	%
Thereafter		7,686		7,686		672		87.47		2.2	%

⁽¹⁾	See page 43 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.

- 40 -


		CASH BASIS CAPITAL EXPENDITURES

(unaudited and in thousands)


	Three Months Ended June 30, 2019
	Total		New York		San Francisco		Washington, D.C.		Other

Capital Expenditures: ⁽¹⁾
Expenditures to maintain assets	$	4,006	$	3,673	$	192	$	112	$	29
Second generation tenant improvements		8,716		5,952		2,455		309		—
Second generation leasing commissions		5,664		3,175		2,177		312		—
First generation leasing costs and capital expenditures		806		—		806		—		—

Total Capital Expenditures	$	19,192	$	12,800	$	5,630	$	733	$	29


Redevelopment Expenditures: ⁽¹⁾
300 Mission Street (Lobby Renovation)	$	2,446	$	—	$	2,446	$	—	$	—
1325 Avenue of the Americas (Lobby Renovation)		2,354		2,354		—		—		—
31 West 52nd Street (Lobby Renovation)		338		338		—		—		—
Other		3,646		1,948		1,698		—		—

Total Redevelopment Expenditures	$	8,784	$	4,640	$	4,144	$	—	$	—


	Three Months Ended June 30, 2018
	Total		New York		San Francisco		Washington, D.C.		Other
Capital Expenditures: ⁽¹⁾
Expenditures to maintain assets	$	2,496	$	1,738	$	171	$	379	$	208
Second generation tenant improvements		12,343		10,828		1,426		89		—
Second generation leasing commissions		8,049		6,837		1,212		—		—
First generation leasing costs and capital expenditures		716		—		716		—		—

Total Capital Expenditures	$	23,604	$	19,403	$	3,525	$	468	$	208


Redevelopment Expenditures: ⁽¹⁾
31 West 52nd Street (Lobby Renovation)	$	9,216	$	9,216	$	—	$	—	$	—
Other		1,291		33		1,258		—		—

Total Redevelopment Expenditures	$	10,507	$	9,249	$	1,258	$	—	$	—

⁽¹⁾	See page 43 for our definition of this measure.

- 41 -


		CASH BASIS CAPITAL EXPENDITURES

(unaudited and in thousands)


	Six Months Ended June 30, 2019
	Total		New York		San Francisco		Washington, D.C.		Other

Capital Expenditures: ⁽¹⁾
Expenditures to maintain assets	$	7,541	$	5,985	$	1,214	$	265	$	77
Second generation tenant improvements		22,912		17,520		5,012		380		—
Second generation leasing commissions		6,974		4,201		2,461		312		—
First generation leasing costs and capital expenditures		1,653		—		1,653		—		—

Total Capital Expenditures	$	39,080	$	27,706	$	10,340	$	957	$	77


Redevelopment Expenditures: ⁽¹⁾
1325 Avenue of the Americas (Lobby Renovation)	$	4,234	$	4,234	$	—	$	—	$	—
300 Mission Street (Lobby Renovation)		4,212		—		4,212		—		—
31 West 52nd Street (Lobby Renovation)		3,486		3,486		—		—		—
Other		5,875		2,488		3,387		—		—

Total Redevelopment Expenditures	$	17,807	$	10,208	$	7,599	$	—	$	—


	Six Months Ended June 30, 2018
	Total		New York		San Francisco		Washington, D.C.		Other

Capital Expenditures: ⁽¹⁾
Expenditures to maintain assets	$	6,198	$	4,641	$	634	$	614	$	309
Second generation tenant improvements		25,842		23,438		2,281		123		—
Second generation leasing commissions		9,533		7,420		1,971		142		—
First generation leasing costs and capital expenditures		5,370		111		3,200		2,059		—

Total Capital Expenditures	$	46,943	$	35,610	$	8,086	$	2,938	$	309


Redevelopment Expenditures: ⁽¹⁾
31 West 52nd Street (Lobby Renovation)	$	12,180	$	12,180	$	—	$	—	$	—
Other		2,632		620		2,012		—		—

Total Redevelopment Expenditures	$	14,812	$	12,800	$	2,012	$	—	$	—

⁽¹⁾	See page 43 for our definition of this measure.

- 42 -


		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.

- 43 -


		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 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.

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. Development Expenditures consist of hard and soft costs related to the development of a property in getting it ready for its intended use.

- 44 -