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Investor Presentation
2Q 2020 Update
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 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 negative impact of the coronavirus 2019 (COVID-19) global pandemic on the U.S., regional and global
economies and our tenants’ financial condition and results of operations, 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.
The data and information herein are as of June 30, 2020 unless otherwise indicated.
2
Paramount Group at a Glance
Ticker: PGRENYSE-LISTED COMPANY
1978FOUNDED IN
2014INITIAL PUBLIC OFFERING
14 REIT ASSETS
14 MM (1)
SQUARE FEET
$6 B (3)
TOTAL MARKET CAP.
$357 MM (4)
ANNUALIZED CASH NOI
~$14 B (2)
TOTAL AUM
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
Note: Please refer to the Appendix for all Non-GAAP reconciliations and list of defined terms. All figures as of June 30, 2020.(1) Includes 14 REIT-owned assets aggregating 13.1 million square feet and five other buildings that are managed by Paramount aggregating 1.0 million square feet.(2) Calculated based on (i) Green Street Advisors’ estimate of Gross Asset Value as of July 24, 2020 for REIT-owned assets, (ii) management’s estimate of values for managed
assets and (iii) committed capital for Fund assets as of June 30, 2020.(3) Based on PGRE closing price of $7.71 on June 30, 2020.(4) Based on PGRE’s share of Cash NOI of $89.2 million for the three months ended June 30, 2020.(5) At PGRE’s share. Excluding 1899 Pennsylvania Avenue, which is under contract for sale, the leased percentage would have been 95.7%.
95.6% (5)
LEASED
3
Executive Management
Senior Vice Presidents
Albert BehlerChairman, Chief Executive
Officer & President
Wilbur PaesChief Financial Officer
& Treasurer
David ZobelAcquisitions
Ermelinda BerberiChief Accounting Officer
David EatonLeasing, San Francisco
Ben GoodsirAsset Management
Michael JackowitzCapital Markets
Todd JanuzziChief Information &
Technology Officer
Gage Johnson General Counsel
Bernard MarascoCounsel – Leasing &
Property Management
Michael NathanAcquisitions
Douglas NeyeLeasing, New York
Peter BrindleyLeasing
Christopher BrandtAsset Management
Matt BautistaDevelopment &
Construction
Experienced Management Team
4
Mario FulgieriTax
Jennifer AmatoFinancial Applications
Holly BaglieriTax & Compliance
Aarti BalachandranTreasury
Marisa GadlinAsset Management
Melissa GraffeoCorporate Accounting
Durgesh KarlekarProperty Accounting
May LauHuman Resources
Frank PapaniaAsset Management
Bhavesh RavalSEC Reporting
Chris ThompsonFP&A
James WhelanProperty Management
Christopher ZizzaAcquisitions
Brent MorrisCapital Markets
Vice Presidents
5
COVID-19 &
Business
Update
• Leased over 300,000 square feet in the first quarter, bringing YTD activity to
over 500,000 square feet.
• Cash and GAAP mark-to-market were +24.2% and +19.2, respectively, for 2Q
2020, and +26.9% and +26.0%, respectively YTD.
• Leasing activity comprised mainly of shorter-term renewals, with tenants
taking a “wait-and-see” approach towards new and larger space
commitments.
• As of June 30, had approximately $1.35 billion of liquidity, with
approximately $550 million of cash on balance sheet and additional $800
million of revolver capacity.
• Additional ~$100 million of cash to be generated from the sale of 1899
Pennsylvania Avenue, which is expected to close in 4Q 2020.
Operating Highlights & Business Update
Note: Please refer to the Appendix for all Non-GAAP reconciliations and list of defined terms.
• Highest priority continues to be health and safety of tenants and employees.
• New York is now in Phase 4 of the re-opening process and all offices remain
open, subject to certain limitations. San Francisco has put the re-opening
on indefinite hold, including re-closure of nonessential offices.
• 2Q 2020 rent collections were 97.8% for office tenants and 57.6% for other
tenants (retail + theatres + garages), bringing portfolio wide collections to
96.4%.
• All collections figures are based on pre-COVID-19 contractual rents.
Leasing Activity
Capital Allocation
& Balance Sheet
8.6 MM square feet – 95.3% Leased (1)
New York Portfolio
900 Third Avenue
712 Fifth Avenue
1301 Avenue
of the Americas
MidtownManhattan
1325 Avenue
of the Americas31 West 52nd
Street
1633 Broadway
98.4% Leased
91.8% Leased 99.0% Leased 98.3% Leased 75.2% Leased
81.8% Leased
60 Wall Street
100.0% Leased
6 (1) Leased occupancy presented at PGRE’s share.
4.3 MM square feet – 96.9% Leased (1)
7
One Front Street
98.2% Leased
100.0% Leased
One Market Plaza
99.1% Leased
300 Mission Street111 Sutter Street
83.3% Leased 95.7% Leased
55 Second Street Market Center
94.3% Leased
(1) Leased occupancy presented at PGRE’s share.
San Francisco Portfolio
Transition to New York & San Francisco Focused REIT
Number
of
REIT-Owned
Properties
Total
Square Feet(At 100%)
Annualized
Rent (At PGRE’s Share) (1)
1Q 2015 2Q 2020
8
Washington, D.C.
5 Properties
42%
New York
6 Properties
50%
San Francisco
1 Property
8%
Washington, D.C.
$76.3MM
14%
New York
$423.0MM
78%
San Francisco
$41.1MM
8%
New York
7.2MM Sq. Ft.
69%
San Francisco
1.6MM Sq. Ft.
16%
Washington, D.C.
1.6MM Sq. Ft.
15%
New York7 Properties
50%
San Francisco6 Properties
43%
Washington, D.C.1 Property
7%
New York$482.5MM
70%
San Francisco$193.4MM
28%
Washington, D.C.$15.1MM
2%
San Francisco4.3MM Sq. Ft.
33%
New York8.6MM Sq. Ft.
66%
Washington, D.C.191,000 Sq. Ft.
1%
Note: 1899 Pennsylvania Avenue is currently under contract for sale and expected to close in 4Q 2020.(1) Please see Appendix for our definition of this measure.
Diverse and High Credit Quality Tenant Base
Industry Diversification – % of Annualized Rent
High percentage of PGRE’s share of annualized rent
derived from investment grade / nationally recognized office
tenants.
Weighted average remaining lease term of approximately 7
years on office leases.
Retail, theatre and garage tenants account for less than 4.0%
of PGRE’s share of annualized rent.
Other Blue Chip Tenants
(1) Please see page 21 for our definition of this measure.(2) 116,462 of the square feet leased expire on March 31, 2032.(3) 76,999 and 10,952 of the square feet leased expire on December 31, 2029 and December 31, 2030, respectively.9
(2)
(3)
(1)
(2)
(3)
Legal Services 22.7%
Financial Services -Commercial & Inv.
Banking20.3%
Technology and Media 19.4%
Financial Services, all others 16.6%
Insurance 5.7%
Retail 2.1%
Travel & Leisure2.0%
Real Estate 1.9%
Consumer Products
1.3%
Other 8.0%
Tenancy Highlights
PGRE's Share of
Top 10 Tenants Expiration Date
Square Feet
Occupied
% of Ann.
Rent
1. 12/2020 497,418 4.8%
2. 6/2024 328,992 4.2%
3. 2/2023 312,679 3.9%
4. 9/2034 320,325 3.9%
5. 6/2025 338,602 3.9%
6. 1/2031 288,823 3.8%
7. 3/2032 234,749 2.6%
8. 7/2029 266,713 2.5%
9. 1/2026 235,079 2.2%
10. 4/2025 167,683 2.1%
(1)
Lease Expiration Schedule
Note: Figures do not include 11,441 sf of month-to-month leases or 400,329 sf of vacant space at PGRE’s share.10
11.0%
1.0%
5-Year Average: 688,877 sf
or 7.9% per annum (~6.6% per
annum excl. Barclays in 2021)
Capital Structure Overview
Note: Please refer to the Appendix for all Non-GAAP reconciliations and list of defined terms.(1) Represents Green Street Advisors’ estimate of NAV per share as of July 24, 2020.(2) At PGRE’s share.(3) Represents contractual amounts due pursuant to the respective debt agreements.(4) Includes $200.0 million outstanding under the revolving credit facility, the proceeds of which are held as cash on the balance sheet at June 30, 2020.(5) Represents noncontrolling partners’ share of debt of 1633 Broadway, One Market Plaza and 300 Mission Street.(6) Represents PGRE’s share of 712 Fifth Avenue, Market Center, 55 Second Street, 111 Sutter Street, 60 Wall Street and Oder-Center Germany.
Secured vs. Unsecured (2) (3) (4)
Fixed vs. Floating (2) (3) (4)
11
$3,631,161 95%
$200,000 5%
Secured Unsecured
$3,180,422 83%
$650,739 17%
Fixed Rate Debt Floating Rate Debt
(in thousands, except per share amounts)
At
Green Street
NAV (1)
Stock Price $18.61
Common Shares 221,764
Operating Partnership Units 20,780
Total Shares / Units Outstanding 242,544
Equity Market Capitalization $4,513,745
Consolidated Debt:
Notes & Mortgages Payable (3)
(4)
4,012,716
Less:
Noncontrolling Interests' Share of Consolidated Debt (5)
(786,024)
Add:
PGRE's Share of Unconsolidated JV Debt (6)
604,469
PGRE's Share of Total Debt (4)
3,831,161
Total Market Capitalization 8,344,906
PGRE's Share of Cash & Cash Equiv. (553,977)
Total Enterprise Value $7,790,929
Net Debt $3,277,184
Well-Laddered Debt Maturity Profile
Debt Maturity Schedue (1) (2) (3)
Note: Please refer to the Appendix for all Non-GAAP reconciliations and list of defined terms.(1) At PGRE’s share.(2) Represents contractual amounts due pursuant to the respective debt agreements.(3) Excludes PGRE’s Share of Oder-Center Germany debt and $200.0 million outstanding on the revolving credit facility at June 30, 2020.12
Wtd. Avg. Maturity: 5.4 years
Wtd. Avg. Interest Rate: 3.22%
1633 Broadway$1,125.0
1301 AoA$850.0
31 West 52nd$500.0
Market Cntr$269.3
One Market$477.8
300 Mission$73.9 712 5th Ave.
$150.0
60 Wall$28.8
111 Sutter$71.9
55 Second$82.7
0
200
400
600
800
1000
1200
1400
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Schedule of Free Rent Burn Off
As of June 30, 2020, we have $43.1 million of annualized initial cash rents that are yet to contribute to Cash NOI:
• $34.6 million from commenced leases in free rent periods, and
• $8.5 million from signed leases not yet commenced.
These leases become cash paying over the next three years as detailed below:
13
(in thousands) Annualized Initial Cash Rent 1 Amount Contributing to:
As of June 30, 2020 100% Amount PGRE Share 2020 2021 2022
New York:
Commenced Leases in Free Rent Period $25,200 $21,263 $4,569 $20,714 $21,263
Signed Leases Not Yet Commenced 4,316 3,537 – 1,969 3,537
Subtotal $29,516 $24,800 $4,569 $22,683 $24,800
San Francisco:
Commenced Leases in Free Rent Period $31,832 $13,361 $3,446 $13,275 $13,361
Signed Leases Not Yet Commenced 12,201 4,963 276 4,066 4,228
Subtotal $44,033 $18,324 $3,722 $17,341 $17,589
Total Commenced Leases in Free Rent Period $57,032 $34,624 $8,015 $33,989 $34,624
Total Signed Leases Not Yet Commenced 16,517 8,500 276 6,035 7,765
Grand Total $73,549 $43,124 $8,291 $40,024 $42,389
Appendix
Reconciliation of Non-GAAP Measures
(1) Please see page 21 for our definition of this measure.15
FFO(unaudited and in thousands , except share and per share amounts)
June 30, 2020 June 30, 2019 March 31, 2020 June 30, 2020 June 30, 2019
(7,684)$ 5,174$ 5,226$ (2,458)$ 12,174$
70,546 63,721 70,940 141,486 127,409
- 2,348 690 690 4,725
62,862 71,243 76,856 139,718 144,308
(8,711) (11,277) (8,969) (17,680) (23,025)
1,235 (53) (23) 1,212 (147)
55,386 59,913 67,864 123,250 121,136
(4,723) (5,705) (6,278) (11,001) (11,703)
50,663$ 54,208$ 61,586$ 112,249$ 109,433$
0.23$ 0.23$ 0.27$ 0.50$ 0.47$
62,862$ 71,243$ 76,856$ 139,718$ 144,308$
(920) (1,331) (388) (1,308) (61)
324 260 303 627 1,083
62,266 70,172 76,771 139,037 145,330
(8,711) (11,277) (8,969) (17,680) (23,025)
1,235 (53) (23) 1,212 (147)
54,790 58,842 67,779 122,569 122,158
(4,672) (5,603) (6,270) (10,942) (11,806)
50,118$ 53,239$ 61,509$ 111,627$ 110,352$
0.23$ 0.23$ 0.27$ 0.50$ 0.47$
221,573,199 234,329,904 227,769,213 224,671,206 233,877,117
4,225 25,960 35,963 20,164 31,119
221,577,424 234,355,864 227,805,176 224,691,370 233,908,236 Denominator for FFO and Core FFO per diluted share
Effect of dilutive securities
Weighted average shares outstanding
Reconciliation of weighted average shares outstanding:
Per diluted share
Core FFO attributable to common stockholders (1)
Less Core FFO attributable to noncontrolling interests in Operating Partnership
Core FFO attributable to Paramount Group Operating Partnership
Consolidated real estate fund
Non-core items:
FFO
Consolidated joint ventures
Less Core FFO attributable to noncontrolling interests in:
Core FFO (1)
Other, net
Our share of distributions from 712 Fifth Avenue in excess of earnings
Consolidated joint ventures
Less FFO attributable to noncontrolling interests in:
FFO (1)
Adjustments related to discontinued operations
of unconsolidated joint ventures)
Per diluted share
FFO attributable to common stockholders (1)
Less FFO attributable to noncontrolling interests in Operating Partnership
FFO attributable to Paramount Group Operating Partnership
Consolidated real estate fund
Three Months Ended Six Months Ended
Real estate depreciation and amortization (including our share
Net (loss) income
Reconciliation of net (loss) income to FFO and Core FFO:
Reconciliation of Non-GAAP Measures
16 (1) Please see page 21 for our definition of this measure.
NOI(unaudited and in thousands)
June 30, 2020 June 30, 2019 March 31, 2020 June 30, 2020 June 30, 2019
(7,684)$ 5,174$ 5,226$ (2,458)$ 12,174$
58,716 60,277 58,427 117,143 120,989
17,901 17,695 12,249 30,150 35,138
36,009 37,213 36,619 72,628 74,137
138 268 604 742 1,406
10,376 4,185 13,392 23,768 9,596
5,955 456 4,221 10,176 1,483
(6,209) (4,213) (6,330) (12,539) (10,212)
(2,252) (2,583) 996 (1,256) (6,483)
- 2,348 690 690 4,725
169 163 151 320 853
113,119 120,983 126,245 239,364 243,806
(15,733) (17,839) (15,691) (31,424) (35,748)
1,437 (6) 3 1,440 23
98,823$ 103,138$ 110,557$ 209,380$ 208,081$
113,119$ 120,983$ 126,245$ 239,364$ 243,806$
(10,037) (10,937) (11,804) (21,841) (22,806)
(1,701) (2,745) (2,832) (4,533) (5,985)
114 100 119 233 211
101,495 107,401 111,728 213,223 215,226
(13,716) (15,583) (13,202) (26,918) (30,368)
1,437 (6) 3 1,440 23
89,216$ 91,812$ 98,529$ 187,745$ 184,881$
Loss from unconsolidated joint ventures
Add (subtract) adjustments to arrive at NOI and Cash NOI:
Adjustments related to discontinued operations
Interest and other (income) loss, net
Adjustments related to discontinued operations
Net (loss) income
Reconciliation of net (loss) income to NOI and Cash NOI:
Fee income
NOI from unconsolidated joint ventures
Income tax expense
Interest and debt expense
Consolidated real estate fund
Consolidated joint ventures
Less NOI attributable to noncontrolling interests in:
NOI (1)
Other, net
General and administrative
Depreciation and amortization
Three Months Ended Six Months Ended
PGRE's share of Cash NOI (1)
Consolidated real estate fund
Consolidated joint ventures
Less Cash NOI attributable to noncontrolling interests in:
Cash NOI (1)
our share of unconsolidated joint ventures)
Amortization of above and below-market leases, net (including
unconsolidated joint ventures)
Straight-line rent adjustments (including our share of
Less:
NOI
PGRE's share of NOI (1)
Reconciliation of Non-GAAP Measures
(1) Please see page 21 for our definition of this measure.(2) Represents our share of Same Store Cash NOI attributable to acquired properties (Market Center and 55 Second Street in San Francisco) for the months in which they
were not owned by us in both reporting periods.(3) Represents Cash NOI from discontinued operations (1899 Pennsylvania Avenue in 2020 and 1899 Pennsylvania Avenue and Liberty Place in 2019).(4) Represents impairments of receivables arising from operating leases that have been consistently excluded from our same store results in prior periods as noted in our
definition of these terms. In prior periods, adjustments for these items have been relatively small and as such, were included within "other".(5) Represents Cash NOI attributable to 10.0% sale of 1633 Broadway for the months in which it was not owned by us in both reporting periods.17
SAME STORE RESULTS(unaudited and in thousands)
Total New York San Francisco Other
89,216$ 60,262$ 28,396$ 558$
(6,754) - (6,754) -
(2,261) - - (2,261) (3)
1,940 1,152 788 -
1,626 (77) - 1,703
83,767$ 61,337$ 22,430$ -$
Total New York San Francisco Other
91,812$ 66,378$ 21,667$ 3,767$
- - - -
(5,310) (806) (5) - (4,504) (3)
91 114 (23) -
737 - - 737
87,330$ 65,686$ 21,644$ -$
(3,563)$ (4,349)$ 786$ -$
(4.1%) (6.6%) 3.6%
PGRE's share of Same Store Cash NOI for the three months ended June 30, 2020
% (Decrease) increase
(Decrease) increase in PGRE's share of Same Store Cash NOI
Three Months Ended June 30, 2020
Lease termination income and other, net
Reserves for uncollectible accounts receivable (4)
Three Months Ended June 30, 2019
Dispositions / Discontinued Operations
Acquisitions
SAME STORE CASH NOI (1)
PGRE's share of Cash NOI for the three months ended June 30, 2020
PGRE's share of Same Store Cash NOI for the three months ended June 30, 2019
Dispositions / Discontinued Operations
Acquisitions (2)
PGRE's share of Cash NOI for the three months ended June 30, 2019
Lease termination income and other, net
Reserves for uncollectible accounts receivable (4)
Reconciliation of Non-GAAP Measures
(1) Please see page 21 for our definition of this measure.(2) Represents our share of Same Store Cash NOI attributable to acquired properties (Market Center, 55 Second Street and 111 Sutter Street in San Francisco) for the
months in which they were not owned by us in both reporting periods.(3) Represents Cash NOI from discontinued operations (1899 Pennsylvania Avenue in 2020 and 1899 Pennsylvania Avenue and Liberty Place in 2019).(4) Represents impairments of receivables arising from operating leases that have been consistently excluded from our same store results in prior periods as noted in our
definition of these terms. In prior periods, adjustments for these items have been relatively small and as such, were included within "other".(5) Represents Cash NOI attributable to 10.0% sale of 1633 Broadway for the months in which it was not owned by us in both reporting periods18
SAME STORE RESULTS(unaudited and in thousands)
Total New York San Francisco Other
187,745$ 129,732$ 56,629$ 1,384$
(13,560) - (13,560) -
(4,591) - - (4,591) (3)
1,940 1,152 788 -
3,047 (153) (7) 3,207
174,581$ 130,731$ 43,850$ -$
Total New York San Francisco Other
184,881$ 135,179$ 42,093$ 7,609$
- - - -
(9,904) (806) (5) - (9,098) (3)
276 299 (23) -
(857) (2,346) - 1,489
174,396$ 132,326$ 42,070$ -$
185$ (1,595)$ 1,780$ -$
0.1% (1.2%) 4.2%
Increase (decrease) in PGRE's share of Same Store Cash NOI
Six Months Ended June 30, 2020
Six Months Ended June 30, 2019
PGRE's share of Cash NOI for the six months ended June 30, 2020
Acquisitions
Dispositions / Discontinued Operations
Reserves for uncollectible accounts receivable (4)
PGRE's share of Same Store Cash NOI for the six months ended June 30, 2019
PGRE's share of Cash NOI for the six months ended June 30, 2019
PGRE's share of Same Store Cash NOI for the six months ended June 30, 2020
Reserves for uncollectible accounts receivable (4)
Dispositions / Discontinued Operations
Acquisitions (2)
SAME STORE CASH NOI (1)
Lease termination income and other, net
Lease termination income and other, net
% Increase (decrease)
Reconciliation of Non-GAAP Measures
(1) Please see page 21 for our definition of this measure.(2) Represents our share of Same Store NOI attributable to acquired properties (Market Center and 55 Second Street in San Francisco) for the months in which they were
not owned by us in both reporting periods.(3) Represents NOI from discontinued operations (1899 Pennsylvania Avenue in 2020 and 1899 Pennsylvania Avenue and Liberty Place in 2019).(4) Represents impairments of receivables arising from operating leases that have been consistently excluded from our same store results in prior periods as noted in our
definition of these terms. In prior periods, adjustments for these items have been relatively small and as such, were included within "other".(5) Represents NOI attributable to 10.0% sale of 1633 Broadway for the months in which it was not owned by us in both reporting periods.19
SAME STORE RESULTS(unaudited and in thousands)
Total New York San Francisco Other
98,823$ 65,716$ 32,635$ 472$
(8,425) - (8,425) -
(2,147) - - (2,147) (3)
7,685 4,993 2,692 -
1,940 1,152 788 -
1,598 (77) - 1,675
99,474$ 71,784$ 27,690$ -$
Total New York San Francisco Other
103,138$ 75,123$ 24,326$ 3,689$
- - - -
(5,339) (935) (5) - (4,404) (3)
91 114 (23) -
715 - - 715
98,605$ 74,302$ 24,303$ -$
869$ (2,518)$ 3,387$ -$
0.9% (3.4%) 13.9%
Reserves for uncollectible accounts receivable (4)
Lease termination income and other, net
% Increase (decrease)
Increase (decrease) in PGRE's share of Same Store NOI
PGRE's share of Same Store NOI for the three months ended June 30, 2019
Dispositions / Discontinued Operations
Acquisitions
PGRE's share of NOI for the three months ended June 30, 2019
Acquisitions (2)
PGRE's share of NOI for the three months ended June 30, 2020
SAME STORE NOI (1) Three Months Ended June 30, 2020
Three Months Ended June 30, 2019
PGRE's share of Same Store NOI for the three months ended June 30, 2020
Lease termination income and other, net
Dispositions / Discontinued Operations
Non-cash write-offs (primarily straight-line rent receivables) (4)
Reserves for uncollectible accounts receivable (4)
Reconciliation of Non-GAAP Measures
(1) Please see page 21 for our definition of this measure.(2) Represents our share of Same Store NOI attributable to acquired properties (Market Center, 55 Second Street and 111 Sutter Street in San Francisco) for the months in
which they were not owned by us in both reporting periods.(3) Represents NOI from discontinued operations (1899 Pennsylvania Avenue in 2020 and 1899 Pennsylvania Avenue and Liberty Place in 2019).(4) Represents impairments of receivables arising from operating leases that have been consistently excluded from our same store results in prior periods as noted in our
definition of these terms. In prior periods, adjustments for these items have been relatively small and as such, were included within "other".(5) Represents NOI attributable to 10.0% sale of 1633 Broadway for the months in which it was not owned by us in both reporting periods.20
SAME STORE RESULTS(unaudited and in thousands)
Total New York San Francisco Other
209,380$ 141,208$ 67,074$ 1,098$
(17,717) - (17,717) -
(4,358) - - (4,358) (3)
7,685 4,993 2,692
1,940 1,152 788 -
3,100 (153) (7) 3,260
200,030$ 147,200$ 52,830$ -$
Total New York San Francisco Other
208,081$ 152,773$ 47,955$ 7,353$
- - - -
(9,822) (935) (5) - (8,887) (3)
276 299 (23) -
(812) (2,346) - 1,534
197,723$ 149,791$ 47,932$ -$
2,307$ (2,591)$ 4,898$ -$
1.2% (1.7%) 10.2%
Six Months Ended June 30, 2020
Six Months Ended June 30, 2019
PGRE's share of NOI for the six months ended June 30, 2019
SAME STORE NOI (1)
Non-cash write-offs (primarily straight-line rent receivables) (4)
Dispositions / Discontinued Operations
Acquisitions (2)
PGRE's share of NOI for the six months ended June 30, 2020
Lease termination income and other, net
Reserves for uncollectible accounts receivable (4)
PGRE's share of Same Store NOI for the six months ended June 30, 2020
Reserves for uncollectible accounts receivable (4)
% Increase (decrease)
Increase (decrease) in PGRE's share of Same Store NOI
Dispositions / Discontinued Operations
Acquisitions
PGRE's share of Same Store NOI for the six months ended June 30, 2019
Lease termination income and other, net
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 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.
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 in our New York and San Francisco portfolios 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.
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 and not classified as discontinued operations.21