UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended: March 31, 2025
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to .
Commission File Number: 001-36746
PARAMOUNT GROUP, INC.
(Exact name of registrant as specified in its charter)
Maryland
32-0439307
(State or other jurisdiction of
incorporation or organization)
(IRS Employer
Identification No.)
1633 Broadway, New York, NY
10019
(Address of principal executive offices)
(Zip Code)
Registrant’s telephone number, including area code: (212) 237-3100
Securities registered pursuant to Section 12(b) of the Act:
Title of each Class
Trading Symbol
Name of each exchange on which registered
Common stock of Paramount Group, Inc.,$0.01 par value per share
PGRE
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer
Accelerated Filer
Non-Accelerated Filer
Smaller Reporting Company
Emerging Growth Company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of April 15, 2025, there were 219,225,083 shares of the registrant’s common stock outstanding.
Table of Contents
Item
Page Number
Part I.
Financial Information
Item 1.
Consolidated Financial Statements
3
Consolidated Balance Sheets (Unaudited) as of March 31, 2025 and December 31, 2024
Consolidated Statements of Income (Unaudited) for the three months ended
March 31, 2025 and 2024
4
Consolidated Statements of Comprehensive Income (Unaudited) for the three months ended
5
Consolidated Statements of Changes in Equity (Unaudited) for the three months ended
6
Consolidated Statements of Cash Flows (Unaudited) for the three months ended
7
Notes to Consolidated Financial Statements (Unaudited)
9
Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
25
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
43
Item 4.
Controls and Procedures
45
Part II.
Other Information
Legal Proceedings
46
Item 1A.
Risk Factors
Unregistered Sales of Equity Securities and Use of Proceeds
Defaults Upon Senior Securities
Mine Safety Disclosures
Item 5.
Item 6.
Exhibits
47
Signatures
48
2
PART I – FINANCIAL INFORMATION
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(Amounts in thousands, except share, unit and per share amounts)
March 31, 2025
December 31, 2024
Assets
Real estate, at cost
Land
$
1,966,237
Buildings and improvements
6,348,260
6,325,097
8,314,497
8,291,334
Accumulated depreciation and amortization
(1,675,242
)
(1,639,529
Real estate, net
6,639,255
6,651,805
Cash and cash equivalents
426,952
375,056
Restricted cash
187,055
180,391
Accounts and other receivables
20,496
18,229
Investments in unconsolidated real estate related funds
4,678
4,649
Investments in unconsolidated joint ventures
81,142
85,952
Deferred rent receivable
355,581
356,425
Deferred charges, net of accumulated amortization of $95,811 and $91,818
106,306
100,684
Intangible assets, net of accumulated amortization of $150,642 and $147,133
46,983
50,492
Other assets
79,030
47,820
Total assets (1)
7,947,478
7,871,503
Liabilities and Equity
Notes and mortgages payable, net of unamortized deferred financing costs of $13,157 and $15,420
3,678,893
3,676,630
Revolving credit facility
-
Accounts payable and accrued expenses
114,074
119,881
Intangible liabilities, net of accumulated amortization of $95,317 and $93,748
19,301
20,870
Other liabilities
34,279
44,625
Total liabilities (1)
3,846,547
3,862,006
Commitments and contingencies
Paramount Group, Inc. equity:
Common stock $0.01 par value per share; authorized 900,000,000 shares; issued and outstanding 219,225,083 and 217,527,797 shares in 2025 and 2024, respectively
2,192
2,175
Additional paid-in-capital
4,100,336
4,144,301
Earnings less than distributions
(1,015,793
(1,005,627
Accumulated other comprehensive income
416
428
Paramount Group, Inc. equity
3,087,151
3,141,277
Noncontrolling interests in:
Consolidated joint ventures
664,249
495,340
Consolidated real estate related funds
84,644
82,875
Operating Partnership (18,784,741 and 20,057,699 units outstanding)
264,887
290,005
Total equity
4,100,931
4,009,497
Total liabilities and equity
See notes to consolidated financial statements (unaudited).
CONSOLIDATED STATEMENTS OF INCOME
For the Three Months Ended March 31,
(Amounts in thousands, except share and per share amounts)
2025
2024
Revenues:
Rental revenue
179,021
179,723
Fee and other income
7,998
9,154
Total revenues
187,019
188,877
Expenses:
Operating
78,050
71,740
Depreciation and amortization
58,879
61,114
General and administrative
17,461
16,634
Transaction related costs
150
178
Total expenses
154,540
149,666
Other income (expense):
Loss from real estate related fund investments
(26
(43
Income from unconsolidated real estate related funds
74
105
Income (loss) from unconsolidated joint ventures
1,907
(1,346
Interest and other income, net
3,815
19,420
Interest and debt expense
(43,200
(40,269
(Loss) income before income taxes
(4,951
17,078
Income tax expense
(366
(347
Net (loss) income
(5,317
16,731
Less net (income) loss attributable to noncontrolling interests in:
(3,845
(5,206
(1,769
(762
Operating Partnership
905
(898
Net (loss) income attributable to common stockholders
(10,026
9,865
(Loss) income per Common Share - Basic:
(Loss) income per common share
(0.05
0.05
Weighted average common shares outstanding
218,005,447
217,105,686
(Loss) income per Common Share - Diluted:
217,186,409
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Amounts in thousands)
Other comprehensive (loss) income:
Change in value of interest rate swaps and interest rate caps
(13
(4,687
Pro rata share of other comprehensive income of unconsolidated joint ventures
143
Comprehensive (loss) income
(5,330
12,187
Less comprehensive (income) loss attributable to noncontrolling interests in:
906
(520
Comprehensive (loss) income attributable to common stockholders
(10,038
5,699
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Accumulated
Noncontrolling Interests in
Additional
Earnings
Other
Consolidated
(Amounts in thousands, except per share
Common Shares
Paid-in-
Less than
Comprehensive
Joint
Real Estate
Total
and unit amounts)
Shares
Amount
Capital
Distributions
Income
Ventures
Related Funds
Partnership
Equity
Balance as of December 31, 2024
217,528
3,845
1,769
(905
Common shares issued upon redemption of common units
1,733
17
25,033
(25,050
Common shares issued under Omnibus share plan, net of shares withheld for taxes
(36
(140
Contributions from noncontrolling interests
2,250
Distributions to noncontrolling interests
(1,855
Change in value of interest rate caps
(12
(1
Amortization of equity awards
197
3,555
3,752
Sale of a 45.0% interest in 900 Third Avenue
(71,912
164,669
92,757
Reallocation of noncontrolling interest
2,717
(2,717
Balance as of March 31, 2025
219,225
Balance as of December 31, 2023
217,366
2,173
4,133,801
(943,935
11,246
413,925
110,589
287,089
4,014,888
Net income
5,206
762
898
(37
(178
Dividends and distributions ($0.035 per share and unit)
(7,607
(769
(8,376
62,220
889
63,109
(809
(8,354
(9,163
(4,297
(390
131
12
269
5,925
6,194
(2,418
2,418
Balance as of March 31, 2024
217,329
4,131,652
(941,855
7,080
480,542
103,886
295,183
4,078,661
CONSOLIDATED STATEMENTS OF CASH FLOWS
Cash Flows from Operating Activities:
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Straight-lining of rental revenue
472
(2,854
Amortization of stock-based compensation expense
Amortization of deferred financing costs
3,637
2,368
(Income) loss from unconsolidated joint ventures
(1,907
1,346
Distributions of earnings from unconsolidated joint ventures
157
Unrealized losses on real estate related fund investments
775
(74
(105
Distributions of earnings from unconsolidated real estate related funds
51
Amortization of above and below-market leases, net
(1,453
(1,340
Non-cash gain on extinguishment of IPO related tax liability
(15,437
Other non-cash adjustments
128
(57
Changes in operating assets and liabilities:
(2,267
2,005
Deferred charges and other assets
(39,174
(20,376
(7,088
8,963
(916
10,362
Net cash provided by operating activities
8,874
69,890
Cash Flows from Investing Activities:
Additions to real estate
(40,436
(39,344
Distribution of capital from an unconsolidated joint venture
7,810
Contributions of capital to unconsolidated joint ventures
(1,250
(1,904
Net cash used in investing activities
(33,876
(41,248
Cash Flows from Financing Activities:
Proceeds from the sale of a 45.0% interest in 900 Third Avenue
83,307
Contributions from noncontrolling interests in consolidated joint ventures
Distributions to noncontrolling interests in consolidated joint ventures
Repurchase of shares related to stock compensation agreements and related tax withholdings
Repayment of notes and mortgages payable
(975,000
Proceeds from notes and mortgages payable
850,000
Debt issuance costs
(10,638
Contributions from noncontrolling interests in consolidated real estate related funds
Distributions to noncontrolling interests in consolidated real estate related funds
Dividends paid to common stockholders
(7,608
Distributions paid to common unitholders
(752
Net cash provided by (used in) financing activities
83,562
(90,230
CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED
Net increase (decrease) in cash and cash equivalents and restricted cash
58,560
(61,588
Cash and cash equivalents and restricted cash at beginning of period
555,447
509,599
Cash and cash equivalents and restricted cash at end of period
614,007
448,011
Reconciliation of Cash and Cash Equivalents and Restricted Cash:
Cash and cash equivalents at beginning of period
428,208
Restricted cash at beginning of period
81,391
Cash and cash equivalents at end of period
276,235
Restricted cash at end of period
171,776
Supplemental Disclosure of Cash Flow Information:
Cash payments for interest
39,618
38,228
Cash payments for income taxes, net of refunds
213
216
Non-Cash Transactions:
25,050
Write-off of fully amortized and/or depreciated assets
15,964
1,659
Additions to real estate included in accounts payable and accrued expenses
12,271
5,099
Dividends and distributions declared but not yet paid
8,376
8
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
As used in these consolidated financial statements, unless otherwise indicated, all references to “we,” “us,” “our,” the “Company,” and “Paramount” refer to Paramount Group, Inc., a Maryland corporation, and its consolidated subsidiaries, including Paramount Group Operating Partnership LP, a Delaware limited partnership (the “Operating Partnership”). We are a fully-integrated real estate investment trust (“REIT”) focused on owning, operating, managing, acquiring and redeveloping high-quality, Class A office properties in select central business district submarkets of New York City and San Francisco. We conduct our business through, and substantially all of our interests in properties and investments are held by, the Operating Partnership. We are the sole general partner of, and owned approximately 92.1% of, the Operating Partnership as of March 31, 2025.
As of March 31, 2025, we own and/or manage a portfolio of 18 properties aggregating 13.8 million square feet comprised of:
Additionally, we have an investment management business, where we serve as the general partner of several real estate related funds for institutional investors and high net-worth individuals.
Basis of Presentation
The accompanying consolidated financial statements are unaudited and have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in conjunction with the instructions to Form 10-Q of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnote disclosures required by GAAP for complete financial statements have been condensed or omitted. These consolidated financial statements include the accounts of Paramount and its consolidated subsidiaries, including the Operating Partnership. In the opinion of management, all significant adjustments (which include only normal recurring adjustments) and eliminations (which include intercompany balances and transactions) necessary to present fairly the financial position, results of operations and changes in cash flows have been made. The consolidated balance sheet as of December 31, 2024 was derived from audited financial statements as of that date but does not include all information and disclosures required by GAAP. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC.
Significant Accounting Policies
There are no material changes to our significant accounting policies as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2024.
Use of Estimates
We have made estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ materially from those estimates. The results of operations for the three months ended March 31, 2025 are not necessarily indicative of the operating results for the full year. Certain prior year balances have been reclassified to conform to current year presentation.
Recently Issued Accounting Pronouncements
In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, an update to Accounting Standards Codification (“ASC”) Topic 740, Income Taxes. ASU 2023-09 enhances income tax disclosures by expanding the effective tax rate reconciliation and requiring disaggregated income tax information by jurisdictions. ASU 2023-09 is effective for fiscal years that begin after December 15, 2024, with early adoption permitted. We will adopt the provisions of ASU 2023-09 in our Annual Report on Form 10-K for the year ended December 31, 2025, and do not believe that the adoption will have a material impact on our consolidated financial statements.
In November 2024, the FASB issued ASU 2024-03, an update to ASC Topic 220, Income Statement - Reporting Comprehensive Income. ASU 2024-03 requires disaggregated disclosures in the notes to the financial statements of each income statement line item that contains certain categories of expenses, including employee compensation, depreciation and amortization. ASU 2024-03 is effective for our year ending December 31, 2027, and interim periods beginning after December 15, 2027, with early adoption permitted. We are evaluating the impact of ASU 2024-03 on our consolidated financial statements and the related disclosures.
On January 17, 2025, we sold a 45.0% equity interest in 900 Third Avenue, a 600,000 square foot Class A office building located in New York, at a gross asset valuation of $210,000,000. We realized net proceeds of $94,000,000 from the sale after transaction costs, of which $9,450,000 was received in December 2024 upon execution of the contract. Since the newly formed joint venture is deemed to be a variable interest entity and we are the primary beneficiary, we continue to consolidate the financial position and the result of operations of 900 Third Avenue into our consolidated financial statements and the sale was accounted for as an equity transaction.
Real Estate Related Fund Investments (Fund X)
We are the general partner and investment manager of Paramount Group Real Estate Fund X, LP (“Fund X”) and own a 13.0% interest in the fund. The following table sets forth the details of income or loss from real estate related fund investments for the three months ended March 31, 2025 and 2024.
Net investment (loss) income
732
Net unrealized losses
(775
Less: noncontrolling interests in consolidated real estate related funds
22
50
(Loss) income from real estate related fund investments attributable to Paramount Group, Inc.
(4
Residential Development Fund (“RDF”)
We are also the general partner of RDF in which we own a 7.4% interest. RDF owns a 35.0% interest in One Steuart Lane, a for-sale residential condominium project, in San Francisco, California. We consolidate the financial results of RDF into our consolidated financial statements and reflect the 92.6% interest that we do not own as noncontrolling interests in consolidated real estate related funds. RDF accounts for its 35.0% interest in One Steuart Lane under the equity method of accounting. Accordingly, our economic interest in One Steuart Lane (based on our 7.4% ownership interest in RDF) is 2.6%. See Note 6, Investments in Unconsolidated Joint Ventures.
10
We are the general partner and investment manager of Paramount Group Real Estate Fund VIII, LP (“Fund VIII”), which invests in real estate and related investments. As of March 31, 2025, our ownership interest in Fund VIII was approximately 1.3%. We account for our investment in Fund VIII under the equity method of accounting.
As of March 31, 2025 and December 31, 2024, our share of the investments in the unconsolidated real estate related funds was $4,678,000 and $4,649,000, respectively, which is reflected as “investments in unconsolidated real estate related funds” on our consolidated balance sheets. We recognized income of $74,000 and $105,000 during the three months ended March 31, 2025 and 2024, respectively, for our share of earnings, which is reflected as “income from unconsolidated real estate related funds” in our consolidated statements of income.
In August 2024, the joint venture that owns Market Center, in which we have a 67.0% ownership interest, ceased making debt service payments on the non-recourse mortgage loan due to insufficient property cash flows. In January 2025, the joint venture defaulted on the $416,544,000 mortgage loan, as it was not repaid at maturity. The joint venture is currently working with the lenders to sell the property.
The following tables summarize our investments in unconsolidated joint ventures as of the dates thereof and the income or loss from these investments for the periods set forth below.
Paramount
As of
Our Share of Investments:
Ownership
One Steuart Lane (1)
35.0% (2)
70,617
76,579
1600 Broadway (1)
9.2%
8,004
8,161
60 Wall Street
5.0%
2,521
1,212
Other (3)
Various
Our Share of Net Income (Loss):
One Steuart Lane
1,848
691
1600 Broadway
1
59
(1,687
(351
11
The following tables provide the combined summarized financial information of our unconsolidated joint ventures as of the dates thereof and for the periods set forth below.
Balance Sheets:
1,540,228
1,567,771
Cash and cash equivalents and restricted cash
142,265
154,669
Intangible assets, net
41,259
42,672
For-sale residential condominium units (1)
185,944
195,113
43,619
42,128
32,631
26,813
Total assets
1,985,946
2,029,166
Notes and mortgages payable, net
1,797,068
1,783,587
77,160
59,860
Intangible liabilities, net
2,586
2,480
77,158
73,129
Total liabilities
1,953,972
1,919,056
31,974
110,110
Income Statements:
32,484
35,936
Other income (2)
18,748
14,998
51,232
50,934
Operating (3)
32,599
32,439
10,750
13,162
43,349
45,601
Interest and other income
1,816
626
(18,715
(17,589
Loss before income taxes
(9,016
(11,630
(16
Net loss
(9,042
(11,646
The following tables summarize our intangible assets (acquired above-market leases and acquired in-place leases) and intangible liabilities (acquired below-market leases) and the related amortization as of the dates thereof and for the periods set forth below.
Intangible assets:
Gross amount
197,625
Accumulated amortization
(150,642
(147,133
Intangible liabilities:
114,618
(95,317
(93,748
Amortization of above and below-market leases, net (component of "rental revenue")
1,453
1,340
Amortization of acquired in-place leases (component of "depreciation and amortization")
3,158
4,760
The following table sets forth amortization of acquired above and below-market leases, net and amortization of acquired in-place leases for the nine-month period from April 1, 2025 through December 31, 2025, and each of the five succeeding years commencing from January 1, 2026.
Above and Below-Market Leases, Net
In-Place Leases
3,109
6,876
2026
2,947
7,137
2027
2,635
6,493
2028
2,554
6,414
2029
2,117
5,756
2030
1,728
4,667
13
On January 17, 2025, we entered into a consent agreement with the lenders of our revolving credit facility (the “credit facility”) to permit the disposition of a 45.0% equity interest in 900 Third Avenue, one of the assets supporting our credit facility. In connection therewith, we reduced the aggregate commitments under the credit facility to $450,000,000 and modified our credit facility to, among other things, (i) reduce the aggregate unencumbered asset value of all unencumbered eligible properties from $900,000,000 to $500,000,000, (ii) increase the secured leverage ratio as of the last day of any relevant fiscal quarter from 50% to 60%, and (iii) limit borrowings under the credit facility to $200,000,000 through June 30, 2025.
The following table summarizes our consolidated outstanding debt.
Interest Rate
Maturity
Fixed/
as of
Date
Variable Rate
Notes and mortgages payable:
1633 Broadway
90.0%
Dec-2029
Fixed
2.99%
1,250,000
One Market Plaza
49.0%
Feb-2027
4.08%
1301 Avenue of the Americas
100.0%
Aug-2026
SOFR + 277 bps (1)
6.27%
860,000
31 West 52nd Street
Jun-2026
3.80%
500,000
300 Mission Street
31.1%
Oct-2026
4.50%
232,050
Total notes and mortgages payable
4.21%
3,692,050
Less: unamortized deferred financing costs
(13,157
(15,420
Total notes and mortgages payable, net
Revolving Credit Facility
Mar-2026
SOFR + 135 bps
n/a
Prior to August 2024, we had interest rate swap agreements with an aggregate notional amount of $500,000,000 to fix SOFR at 0.49% through August 2024. We also had interest rate cap agreements with an aggregate notional amount of $360,000,000 to cap SOFR at 4.50% through August 2024. In August 2024, upon the expiration of these agreements, we entered into new interest rate cap agreements for an aggregate notional amount of $860,000,000 to cap SOFR at 3.50% through August 2025. These interest rate swaps and interest rate caps are designated as cash flow hedges and therefore changes in their fair values are recognized in other comprehensive income or loss (outside of earnings). We recognized other comprehensive losses of $13,000 and $4,687,000 for the three months ended March 31, 2025 and 2024, respectively, from the changes in the fair value of these derivative financial instruments, which are recorded as a component of other comprehensive loss in our consolidated financial statements. See Note 11, Accumulated Other Comprehensive Income. During the next twelve months, we estimate that $774,000 of the amounts to be recognized in accumulated other comprehensive income will be reclassified as a decrease to interest expense.
The table below provides additional details on our interest rate caps that are designated as cash flow hedges.
Notional
Effective
Benchmark
Strike
Fair Value as of
Property
Rate
Aug-2024
Aug-2025
SOFR
3.50
%
2,220
3,650
Total interest rate cap assets designated as cash flow hedges (included in "other assets")
14
Stock Repurchase Program
We currently have $15,000,000 of capacity under a $200,000,000 stock repurchase program which was approved by our board of directors in November 2019, and allows us to repurchase shares of our common stock from time to time, in the open market or in privately negotiated transactions. We did not repurchase any shares in the three months ended March 31, 2025. The amount and timing of repurchases, if any, will depend on a number of factors, including, the price and availability of our shares, trading volume, general market conditions and available funding. The stock repurchase program may be suspended or discontinued at any time.
The following table sets forth changes in accumulated other comprehensive income by component for the three months ended March 31, 2025 and 2024, respectively, including amounts attributable to noncontrolling interests in the Operating Partnership.
Amount of income related to the cash flow hedges recognized in other comprehensive (loss) income (1)
340
2,378
Amounts reclassified from accumulated other comprehensive income decreasing interest and debt expense (1)
(353
(7,065
Amount of income related to unconsolidated joint ventures recognized in other comprehensive (loss) income
Consolidated Joint Ventures
Noncontrolling interests in consolidated joint ventures as of March 31, 2025 was $664,249,000, and represents the equity interests held by third parties in 1633 Broadway, 900 Third Avenue, One Market Plaza and 300 Mission Street. As of December 31, 2024, noncontrolling interests in consolidated joint ventures was $495,340,000, and represented equity interests held by third parties in 1633 Broadway, One Market Plaza and 300 Mission Street.
Consolidated Real Estate Related Funds
Noncontrolling interests in our consolidated real estate related funds consist of equity interests held by third parties in RDF and Fund X. As of March 31, 2025 and December 31, 2024, the noncontrolling interests in our consolidated real estate related funds aggregated $84,644,000 and $82,875,000, respectively.
Noncontrolling interests in the Operating Partnership represent common units of the Operating Partnership that are held by third parties, including management, and units issued to management under equity incentive plans. Common units of the Operating Partnership may be tendered for redemption to the Operating Partnership for cash. We, at our option, may assume that obligation and pay the holder either cash or common shares on a one-for-one basis. Since the number of common shares outstanding is equal to the number of common units owned by us, the redemption value of each common unit is equal to the market value of each common share and distributions paid to each common unitholder is equivalent to dividends paid to common stockholders. As of March 31, 2025 and December 31, 2024, noncontrolling interests in the Operating Partnership on our consolidated balance sheets had a carrying amount of $264,887,000 and $290,005,000, respectively, and a redemption value of $80,774,000 and $99,085,000, respectively, based on the closing share price of our common stock on the New York Stock Exchange at the end of each period.
15
In the normal course of business, we are the general partner of various types of investment vehicles, which may be considered VIEs. We may, from time to time, own equity or debt securities through vehicles, each of which are considered variable interests. Our involvement in financing the operations of the VIEs is generally limited to our investments in the entity. We consolidate these entities when we are deemed to be the primary beneficiary.
Consolidated VIEs
We are the sole general partner of, and owned approximately 92.1% of, the Operating Partnership as of March 31, 2025. The Operating Partnership is considered a VIE and is consolidated in our consolidated financial statements. Since we conduct our business through and substantially all of our interests are held by the Operating Partnership, the assets and liabilities on our consolidated financial statements represent the assets and liabilities of the Operating Partnership. As of March 31, 2025 and December 31, 2024, the Operating Partnership held interests in consolidated VIEs owning properties and real estate related funds that were determined to be VIEs. The assets of these consolidated VIEs may only be used to settle the obligations of the entities and such obligations are secured only by the assets of the entities and are non-recourse to the Operating Partnership or us. The following table summarizes the assets and liabilities of consolidated VIEs of the Operating Partnership.
3,522,958
3,199,972
306,798
280,258
12,926
10,067
199,812
192,939
Deferred charges, net
46,897
38,610
27,224
28,569
21,445
7,078
Total VIE assets
4,208,677
3,834,072
2,322,477
2,320,880
57,814
54,877
11,546
12,581
5,327
5,334
Total VIE liabilities
2,397,164
2,393,672
Unconsolidated VIEs
As of March 31, 2025, the Operating Partnership held variable interests in entities that own our unconsolidated real estate related funds and an unconsolidated joint venture that were deemed to be VIEs. The following table summarizes our investments in these entities and the maximum risk of loss from these investments.
Investments in unconsolidated real estate funds
Investment in unconsolidated joint venture
Asset management fees and other receivables
524
482
Maximum risk of loss
7,723
6,343
16
Financial Assets Measured at Fair Value
The following table summarizes the fair value of our financial assets that are measured at fair value on our consolidated balance sheets as of the dates set forth below, based on their levels in the fair value hierarchy.
As of March 31, 2025
Level 1
Level 2
Level 3
Interest rate cap assets (included in "other assets")
As of December 31, 2024
Financial Liabilities Not Measured at Fair Value
Financial liabilities not measured at fair value on our consolidated balance sheets consist of notes and mortgages payable and the credit facility. The following table summarizes the carrying amounts and fair value of these financial instruments as of the dates set forth below.
Carrying Amount
Fair Value
Notes and mortgages payable
3,462,972
3,412,126
We lease office, retail and storage space to tenants, primarily under non-cancellable operating leases which generally have terms ranging from five to fifteen years. Most of our leases provide tenants with extension options at either fixed or market rates and few of our leases provide tenants with options to terminate early, but such options generally impose an economic penalty on the tenant upon exercising. Rental revenue is recognized in accordance with ASC Topic 842, Leases, and includes (i) fixed payments of cash rents, which represent revenue each tenant pays in accordance with the terms of its respective lease and that is recognized on a straight-line basis over the non-cancellable term of the lease, and includes the effects of rent steps and rent abatements under the leases, (ii) variable payments of tenant reimbursements, which are recoveries of all or a portion of the operating expenses and real estate taxes of the property and are recognized in the same period as the expenses are incurred, (iii) amortization of acquired above and below-market leases, net and (iv) lease termination income.
The following table sets forth the details of our rental revenue.
Rental revenue:
153,419
160,824
Variable
25,602
18,899
Total rental revenue
The following table is a schedule of future undiscounted cash flows under non-cancellable operating leases in effect as of March 31, 2025, for the nine-month period from April 1, 2025 through December 31, 2025, and each of the five succeeding years and thereafter commencing January 1, 2026.
430,552
514,186
476,371
476,392
456,404
409,100
Thereafter
1,514,835
4,277,840
The following table sets forth the details of our fee and other income.
Fee income:
Asset management
1,869
2,305
Property management
1,513
1,744
Acquisition, disposition, leasing and other
1,643
2,199
Total fee income
5,025
6,248
Other income (1)
2,973
2,906
Total fee and other income
18
The following table sets forth the details of interest and other income, net.
Interest income, net
3,983
15,437
Total interest and other income, net
The following table sets forth the details of interest and debt expense.
Interest expense
39,563
37,901
(1)
Total interest and debt expense
43,200
40,269
Stock-Based Compensation
Our 2024 Equity Incentive Plan (the “2024 Plan”) provides for grants of equity awards to our executive officers, non-employee directors and employees in order to attract and motivate talent for which we compete. In addition, equity awards are an effective management retention tool as they vest over multiple years based on continued employment. Equity awards are granted in the form of (i) restricted stock and (ii) long-term incentive plan (“LTIP”) units, which represent a class of partnership interests in our Operating Partnership and are typically comprised of Time-Based LTIP units, Performance-Based LTIP units, Time-Based Appreciation Only LTIP units and Performance-Based Appreciation Only LTIP units. We account for all stock-based compensation in accordance with ASC 718, Compensation – Stock Compensation. We recognized stock-based compensation expense of $3,752,000 and $6,194,000 for the three months ended March 31, 2025 and 2024, respectively, related to awards granted in prior periods.
Completion of the 2022 Performance-Based Awards Program (“2022 Performance Program”)
On December 31, 2024, the three-year performance measurement period for our 2022 Performance Program ended. On February 7, 2025, the Compensation Committee of our board of directors determined that 26.7%, or 474,463 of the LTIP units that were granted under the 2022 Performance Program, were earned. Of the LTIP units that were earned, 237,225 units vested immediately on February 7, 2025 and the remaining 237,238 units are scheduled to vest on December 31, 2025.
19
The following table summarizes our net income or loss and the number of common shares used in the computation of basic and diluted income or loss per common share, which includes the weighted average number of common shares outstanding and the effect of dilutive potential common shares, if any.
(Amounts in thousands, except per share amounts)
Numerator:
Earnings allocated to unvested participating securities
(9
Numerator for (loss) income per common share - basic and diluted
9,856
Denominator:
Denominator for basic (loss) income per common share - weighted average shares
218,005
217,106
Effect of dilutive stock-based compensation plans (1)
80
Denominator for diluted (loss) income per common share - weighted average shares
217,186
(Loss) income per common share - basic and diluted
HT Consulting GmbH
Albert Behler, our Chairman, Chief Executive Officer and President, owns 100% of HT Consulting GmbH (“HTC”), a licensed broker in Germany. We have an agreement with HTC to supervise selling efforts for our joint ventures and private equity real estate related funds (or investments in feeder vehicles for these funds) to investors in Germany. Pursuant to this agreement, we have agreed to pay HTC for the costs incurred plus a mark-up of 10%. We incurred costs aggregating $120,000 and $123,000 for the three months ended March 31, 2025 and 2024, respectively, in connection with this agreement. As of March 31, 2025 and December 31, 2024, we owed $109,000 and $113,000, respectively, to HTC under this agreement, which is included as a component of “accounts payable and accrued expenses” on our consolidated balance sheets.
Aircraft Services
Mr. Behler owns 50% of a private aviation company, in addition to owning a private aircraft that is managed by third-party aviation management companies. From time to time, Mr. Behler utilizes aircraft sourced from his private aviation company and his private aircraft for business travel. We incurred costs aggregating $147,000 and $377,000 for the three months ended March 31, 2025 and 2024, respectively, related to the charter by Mr. Behler of such aircraft for business purposes, which is included as a component of “general and administrative” in our consolidated statements of income.
20
Kramer Design Services
Kramer Design Services (“Kramer Design”) is 100% owned by the spouse of Mr. Behler. In February 2025, we entered into agreements with Kramer Design to provide branding and design services relating to certain of our properties in San Francisco for an aggregate cost of $220,000 excluding expenses. We paid Kramer Design $39,000 for the three months ended March 31, 2025, in connection with services rendered pursuant to these agreements. In addition, we had entered into an agreement with Kramer Design to develop branding and signage for the Paramount Club, our amenity center at 1301 Avenue of the Americas, which opened in May 2024. We paid Kramer Design $25,000 for the three months ended March 31, 2024, in connection with services rendered pursuant to this agreement.
Mannheim Trust
The Mannheim Trust is for the benefit of the children of Dr. Martin Bussmann, who is a member of our board of directors. A subsidiary of Mannheim Trust leases 3,127 square feet of office space at 712 Fifth Avenue, our 50.0% owned unconsolidated joint venture, pursuant to a lease agreement which expires in August 2026. We recognized $30,000 in each of the three months ended March 31, 2025 and 2024, respectively, for our share of rental income pursuant to this lease.
ParkProperty Capital, LP
ParkProperty Capital, LP (“ParkProperty”), an entity partially owned by Katharina Otto-Bernstein, who is a member of our board of directors, leases 4,233 square feet at 1325 Avenue of the Americas, pursuant to a lease agreement that expires in November 2027. We recognized rental revenue of $71,000 in each of the three months ended March 31, 2025 and 2024, respectively, pursuant to this lease.
Management Agreements
We provide property management, leasing and other related services to certain properties owned by members of the Otto Family. We recognized fee income of $147,000 and $177,000 for the three months ended March 31, 2025 and 2024, respectively, in connection with these agreements, which is included as a component of “fee and other income” in our consolidated statements of income. As of March 31, 2025 and December 31, 2024, amounts owed to us under these agreements aggregated $42,000 and $31,000, respectively, which are included as a component of “accounts and other receivables” on our consolidated balance sheets.
We also provide asset management, property management, leasing and other related services to our unconsolidated joint ventures and real estate related funds. We recognized fee income of $3,237,000 and $5,363,000 for the three months ended March 31, 2025 and 2024, respectively, in connection with these agreements, which is included as a component of “fee and other income” in our consolidated statements of income. As of March 31, 2025 and December 31, 2024, amounts owed to us under these agreements aggregated $1,675,000 and $1,652,000, respectively, which are included as a component of “accounts and other receivables” on our consolidated balance sheets.
21
Insurance
We carry commercial general liability coverage on our properties, with limits of liability customary within the industry. Similarly, we are insured against the risk of direct and indirect physical damage to our properties including coverage for perils such as floods, earthquakes and windstorms. Our policies also cover the loss of rental income during an estimated reconstruction period. Our policies reflect limits and deductibles customary in the industry and specific to the buildings and portfolio. We also obtain title insurance policies when acquiring new properties. We currently have coverage for losses incurred in connection with both domestic and foreign terrorist-related activities, as well as cybersecurity incidents. While we do carry commercial general liability insurance, property insurance, terrorism insurance and cybersecurity insurance, these policies include limits and terms we consider commercially reasonable. In addition, there are certain losses (including, but not limited to, losses arising from known environmental conditions or acts of war) that are not insured, in full or in part, because they are either uninsurable or the cost of insurance makes it, in our belief, economically impractical to maintain such coverage. Should an uninsured loss arise against us, we would be required to use our own funds to resolve the issue, including litigation costs. We believe the policy specifications and insured limits are adequate given the relative risk of loss, the cost of the coverage and industry practice and, in consultation with our insurance advisors, we believe the properties in our portfolio are adequately insured.
Other Commitments and Contingencies
We are a party to various claims and routine litigation arising in the ordinary course of business. Some of these claims or others to which we may be subject from time to time may result in defense costs, settlements, fines or judgments against us, some of which are not, or cannot be, covered by insurance. Payment of any such costs, settlements, fines or judgments that are not insured could have an adverse impact on our financial position and results of operations. Should any litigation arise, we would contest it vigorously. In addition, certain litigation or the resolution of certain litigation may affect the availability or cost of some of our insurance coverage, which could adversely impact our results of operations and cash flow, expose us to increased risks that would be uninsured, and/or adversely impact our ability to attract officers and directors.
The terms of our consolidated mortgage debt agreements in place include certain restrictions and covenants which may limit, among other things, certain investments, the incurrence of additional indebtedness and liens and the disposition or other transfer of assets and interests in the borrower and other credit parties, and require compliance with certain debt yield, debt service coverage and loan to value ratios. In addition, our credit facility contains representations, warranties, covenants, other agreements and events of default customary for agreements of this type with comparable companies. As of March 31, 2025, we believe we are in compliance with all of our covenants.
On March 29, 2024, the joint venture that owns 60 Wall Street, in which we have a 5.0% ownership interest, modified the existing $575,000,000 non-recourse mortgage loan and extended the maturity to May 2029. In connection with the modification, the joint venture committed to redevelop the property and fund the necessary costs to complete the project. On behalf of the joint venture, we have provided the lender with certain guarantees, including a completion guarantee. We have agreements with our joint venture partners that indemnify us for their share of guarantees we provided. In accordance with GAAP, we are required to record a liability equal to the fair value of the obligations undertaken in issuing the guarantees and record an asset equal to the fair value of the indemnification we have received. As of March 31, 2025, we have a $16,653,000 asset and liability, which are included as a component of “other assets” and “other liabilities,” on our consolidated balance sheets.
Our operating segments, which consist of each one of our properties, are aggregated into two reportable segments based on two geographic regions in which we conduct our business: New York and San Francisco. Our determination of segments is aligned with our method of internal reporting and the way our Chief Executive Officer, who is also our Chief Operating Decision Maker, makes key operating decisions, evaluates financial results and manages our business.
The following tables provide Paramount's share of Net Operating Income (“NOI”) for each reportable segment for the periods set forth below.
For the Three Months March 31, 2025
New York
San Francisco
Property-related revenues
181,994
114,567
66,988
439
Real estate related taxes
(38,911
(29,791
(9,120
Other operating expenses (1)
(39,139
(26,035
(10,919
(2,185
NOI attributable to noncontrolling interests in consolidated joint ventures
(22,083
(3,246
(18,837
NOI from unconsolidated joint ventures
4,927
1,710
Paramount's share of NOI (2)
86,788
58,653
29,822
For the Three Months March 31, 2024
182,629
117,804
65,190
(365
(36,551
(28,876
(7,675
(35,189
(21,438
(13,090
(661
(22,908
(2,676
(20,232
5,602
2,047
93,583
68,369
26,240
(1,026
23
The following table provides a reconciliation of Paramount's share of NOI to net (loss) income attributable to common stockholders for the periods set forth below.
Paramount's share of NOI
22,083
22,908
Adjustments to arrive to net (loss) income:
Fee income
(58,879
(61,114
(17,461
(16,634
(4,927
(5,602
Other, net
(102
(116
The following table provides the total assets for each of our reportable segments as of the dates set forth below.
Total Assets as of:
5,176,697
2,342,183
428,598
5,138,087
2,332,583
400,833
24
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion of our financial condition and results of operations should be read in conjunction with our consolidated financial statements, including the related notes included therein.
Forward-Looking Statements
We make statements in this Quarterly Report on Form 10-Q that are considered “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, which are usually identified by the use of words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “seeks,” “should,” “will,” and variations of such words or similar expressions. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and are including this statement for purposes of complying with those safe harbor provisions. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control including, without limitation:
Accordingly, there is no assurance that our expectations will be realized. Except as otherwise required by the U.S. federal securities laws, we disclaim any obligations or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein (or elsewhere) to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. A reader should review carefully our consolidated financial statements and the notes thereto as well as Item 1A entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024.
Critical Accounting Estimates
There are no material changes to our critical accounting estimates disclosed in our Annual Report on Form 10-K for the year ended December 31, 2024.
Recently Issued Accounting Literature
A summary of our recently issued accounting literature and their potential impact on our consolidated financial statements, if any, are included in Note 2, Basis of Presentation and Significant Accounting Policies, to our consolidated financial statements in this Quarterly Report on Form 10-Q.
26
Business Overview
We are a fully-integrated REIT focused on owning, operating, managing, acquiring and redeveloping high-quality, Class A office properties in select central business district submarkets of New York City and San Francisco. We conduct our business through, and substantially all of our interests in properties and investments are held by, Paramount Group Operating Partnership LP, a Delaware limited partnership (the “Operating Partnership”). We are the sole general partner of, and owned approximately 92.1% of, the Operating Partnership as of March 31, 2025.
Additionally, we have an investment management business where we serve as the general partner of several real estate related funds for institutional investors and high net-worth individuals.
Disposition
900 Third Avenue
On January 17, 2025, we sold a 45.0% equity interest in 900 Third Avenue, a 600,000 square foot Class A office building located in New York, at a gross asset valuation of $210,000,000. We realized net proceeds of $94,000,000 from the sale after transaction costs, of which $9,450,000 was received in December 2024 upon execution of the contract.
Financing
27
Leasing Results - Three Months Ended March 31, 2025
The following table presents the details on the leases signed during the three months ended March 31, 2025. It is not intended to coincide with the commencement of rental revenue in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The leasing statistics, except for square feet leased, represent office space only.
Three Months Ended March 31, 2025
Total square feet leased
283,874
278,115
5,759
Pro rata share of total square feet leased:
186,447
184,036
2,411
Initial rent (1)
76.52
76.22
98.83
Weighted average lease term (in years)
12.9
13.1
1.9
Tenant improvements and leasing commissions:
Per square foot
177.55
179.71
12.59
Per square foot per annum
13.74
13.75
6.78
Percentage of initial rent
18.0%
6.9%
Rent concessions:
Average free rent period (in months)
12.3
12.4
1.6
Average free rent period per annum (in months)
1.0
0.9
Second generation space: (2)
Square feet
81,707
80,410
1,297
Cash basis:
79.08
78.41
120.16
Prior escalated rent (3)
80.27
79.69
116.10
Percentage (decrease) increase
(1.5%)
(1.6%)
3.5%
GAAP basis:
Straight-line rent
78.48
77.81
Prior straight-line rent
73.30
72.87
100.12
Percentage increase
7.1%
6.8%
20.0%
The following table presents same store leased occupancy (at share) as of the dates set forth below.
Same Store Leased Occupancy (1)
86.2
87.4
82.3
84.8
85.0
83.8
28
In the three months ended March 31, 2025, we leased 283,874 square feet, of which our share was 186,447 square feet that was leased at a weighted average initial rent of $76.52 per square foot. This leasing activity, partially offset by lease expirations in the three months, increased same store leased occupancy by 140 basis points to 86.2% at March 31, 2025 from 84.8% at December 31, 2024.
Of the 283,874 square feet leased in the three months ended March 31, 2025, 81,707 square feet represented our share of second generation space for which rental rates increased by 7.1% on a GAAP basis and decreased by 1.5% on a cash basis. The weighted average lease term for leases signed during the three months was 12.9 years and weighted average tenant improvements and leasing commissions on these leases were $13.74 per square foot per annum, or 18.0% of initial rent.
In the three months ended March 31, 2025, we leased 278,115 square feet in our New York portfolio, of which our share was 184,036 square feet that was leased at a weighted average initial rent of $76.22 per square foot. This leasing activity, partially offset by lease expirations in the three months, increased same store leased occupancy by 240 basis points to 87.4% at March 31, 2025 from 85.0% at December 31, 2024.
Of the 278,115 square feet leased in the three months ended March 31, 2025, 80,410 square feet represented our share of second generation space for which rental rates increased by 6.8% on a GAAP basis and decreased by 1.6% on a cash basis. The weighted average lease term for leases signed during the three months was 13.1 years and weighted average tenant improvements and leasing commissions on these leases were $13.75 per square foot per annum, or 18.0% of initial rent.
In the three months ended March 31, 2025, we leased 5,759 square feet in our San Francisco portfolio, of which our share was 2,411 square feet that was leased at a weighted average initial rent of $98.83 per square foot. This leasing activity, offset by lease expirations in the three months, decreased same store leased occupancy by 150 basis points to 82.3% at March 31, 2025 from 83.8% at December 31, 2024.
Of the 5,759 square feet leased in the three months ended March 31, 2025, 1,297 square feet represented our share of second generation space for which rental rates increased by 20.0% on a GAAP basis and 3.5% on a cash basis. The weighted average lease term for leases signed during the three months was 1.9 years and weighted average tenant improvements and leasing commissions on these leases were $6.78 per square foot per annum, or 6.9% of initial rent.
29
Financial Results - Three Months Ended March 31, 2025 and 2024
Net Income, FFO and Core FFO
Net loss attributable to common stockholders was $10,026,000, or $0.05 per diluted share, for the three months ended March 31, 2025, compared to net income attributable to common stockholders of $9,865,000, or $0.05 per diluted share, for the three months ended March 31, 2024. Net income attributable to common stockholders for the three months ended March 31, 2024 includes a $14,148,000, or $0.07 per diluted share, non-cash gain on extinguishment of a tax liability related to our initial public offering.
Funds from Operations (“FFO”) attributable to common stockholders was $36,880,000, or $0.17 per diluted share, for the three months ended March 31, 2025, compared to $59,821,000, or $0.28 per diluted share, for the three months ended March 31, 2024. FFO attributable to common stockholders for the three months ended March 31, 2024 includes $14,148,000, or $0.07 per diluted share, of a non-cash gain on extinguishment of a tax liability related to our initial public offering. FFO attributable to common stockholders for the three months ended March 31, 2025 and 2024 also includes the impact of non-core items, which are listed in the table on page 42. While the aggregate of the non-core items, net of amounts attributable to noncontrolling interests, decreased FFO attributable to common stockholders for the three months ended March 31, 2025 by $1,011,000, it had no impact on FFO per diluted share. The aggregate of the non-core items, net of amounts attributable to noncontrolling interests, increased FFO attributable to common stockholders for the three months ended March 31, 2024 by $11,883,000, or $0.06 per diluted share.
Core Funds from Operations (“Core FFO”) attributable to common stockholders, which excludes the impact of the non-core items listed on page 42, was $37,891,000, or $0.17 per diluted share, for the three months ended March 31, 2025, compared to $47,938,000 or $0.22 per diluted share, for the three months ended March 31, 2024.
Same Store Results
The table below summarizes the percentage increase or decrease in our share of Same Store NOI and Same Store Cash NOI, by segment, for the three months ended March 31, 2025 versus March 31, 2024.
Same Store NOI
(5.4
%)
(13.0
13.7
Same Store Cash NOI
(4.1
(14.3
19.9
See pages 38-42 “Non-GAAP Financial Measures” for a reconciliation of these measures to the most directly comparable GAAP measure and the reasons why we believe these non-GAAP measures are useful.
30
Results of Operations - Three Months Ended March 31, 2025 and 2024
The following pages summarize our consolidated results of operations for the three months ended March 31, 2025 and 2024.
Change
(702
(1,156
(1,858
6,310
(2,235
827
(28
4,874
(31
3,253
(15,605
(2,931
(22,029
(19
(22,048
1,361
(1,007
1,803
(19,891
31
Revenues
Our revenues, which consist of rental revenue and fee and other income, were $187,019,000 for the three months ended March 31, 2025, compared to $188,877,000 for the three months ended March 31, 2024, a decrease of $1,858,000. Below are the details of the increase or decrease by segment.
Same store operations
(673
(3,090
2,417
Lease termination income
224
(253
(Decrease) increase in rental revenue
(2,866
(436
(231
(556
Decrease in fee income
(1,223
Other income
67
(371
(619
1,057
Increase (decrease) in other income
Decrease in fee and other income
(166
Total (decrease) increase in revenues
(3,237
1,798
(419
32
Expenses
Our expenses, which consist of operating, depreciation and amortization, general and administrative and transaction related costs, were $154,540,000 for the three months ended March 31, 2025, compared to $149,666,000 for the three months ended March 31, 2024, an increase of $4,874,000. Below are the details of the increase or decrease by segment.
5,003
5,729
(726
1,307
(277
1,584
Increase (decrease) in operating
5,452
Operations
(1,480
(2)
(608
(147
Decrease in depreciation and amortization
Increase in general and administrative
Decrease in transaction related costs
Total increase (decrease) in expenses
3,972
(1,334
2,236
Loss from Real Estate Related Fund Investments
Loss from real estate related fund investments was $26,000 for the three months ended March 31, 2025, compared to $43,000 for the three months ended March 31, 2024, a decrease in loss of $17,000.
Income from Unconsolidated Real Estate Related Funds
Income from unconsolidated real estate related funds was $74,000 for the three months ended March 31, 2025, compared to $105,000 for the three months ended March 31, 2024, a decrease in income of $31,000.
Income (Loss) from Unconsolidated Joint Ventures
Income from unconsolidated joint ventures was $1,907,000 for the three months ended March 31, 2025, compared to loss from unconsolidated joint ventures of $1,346,000 for the three months ended March 31, 2024, an increase in income of $3,253,000. This increase in income resulted from:
60 Wall Street (losses in the prior year)
1,746
Higher income from One Steuart Lane (higher income in the current year)
1,157
350
Total increase in income
33
Interest and Other Income, net
Interest and other income, net was $3,815,000 for the three months ended March 31, 2025, compared to $19,420,000 for the three months ended March 31, 2024, a decrease in income of $15,605,000. This decrease resulted primarily from a $15,437,000 non-cash gain on extinguishment of a tax liability related to our initial public offering in the prior year.
Interest and Debt Expense
Interest and debt expense was $43,200,000 for the three months ended March 31, 2025, compared to $40,269,000 for the three months ended March 31, 2024, an increase of $2,931,000. This increase resulted primarily from (i) the expiration of interest rate swaps on $500,000,000 of our debt at 1301 Avenue of the Americas in August 2024, partially offset by lower interest expense on the $360,000,000 variable rate portion of our debt at the same property and (ii) a $1,289,000 write-off of deferred financing costs in connection with the modification of our credit facility.
Income Tax Expense
Income tax expense was $366,000 for the three months ended March 31, 2025, compared to $347,000 for the three months ended March 31, 2024, an increase of $19,000.
Net Income Attributable to Noncontrolling Interests in Consolidated Joint Ventures
Net income attributable to noncontrolling interests in consolidated joint ventures was $3,845,000 for the three months ended March 31, 2025, compared to $5,206,000 for the three months ended March 31, 2024, a $1,361,000 decrease in net income attributable to noncontrolling interests in consolidated joint ventures. This decrease in income resulted primarily from lower net income attributable to noncontrolling interests in One Market Plaza.
Net Income Attributable to Noncontrolling Interests in Consolidated Real Estate Related Funds
Net income attributable to noncontrolling interests in consolidated real estate related funds was $1,769,000 for the three months ended March 31, 2025, compared to $762,000 for the three months ended March 31, 2024, an increase in net income attributable to noncontrolling interests in consolidated real estate related funds of $1,007,000. This increase in income resulted primarily from RDF’s share of higher gains on sale of residential condominium units at One Steuart Lane in the current year.
Net (Loss) Income Attributable to Noncontrolling Interests in Operating Partnership
Net loss attributable to noncontrolling interests in the Operating Partnership was $905,000 for the three months ended March 31, 2025, compared to net income attributable to noncontrolling interests in the Operating Partnership of $898,000 for the three months ended March 31, 2024, a decrease in net income allocated to noncontrolling interests of $1,803,000. This decrease in income resulted from lower net income subject to allocation to the unitholders of the Operating Partnership in the current year.
34
Liquidity and Capital Resources
Liquidity
Our primary sources of liquidity include existing cash balances, cash flow from operations and borrowings available under our credit facility. As of March 31, 2025, we had $814,007,000 of liquidity comprised of $426,952,000 of cash and cash equivalents, $187,055,000 of restricted cash and $200,000,000 of borrowing capacity under our credit facility.
We expect that these sources will provide adequate liquidity over the next 12 months for all anticipated needs, including scheduled interest payments on our outstanding indebtedness, existing and anticipated capital improvements, the cost of securing new and renewal leases, and all other capital needs related to the operations of our business.
We anticipate that our long-term needs including debt maturities and potential acquisitions will be funded by operating cash flow, third-party joint venture capital, mortgage financings and/or re-financings, and the issuance of long-term debt or equity and cash on hand. Although we may be able to anticipate and plan for certain of our liquidity needs, unexpected increases in uses of cash that are beyond our control and which affect our financial condition and results of operations may arise, or our sources of liquidity may be fewer than, and the funds available from such sources may be less than, anticipated or required.
Consolidated Debt
As of March 31, 2025, our outstanding consolidated debt aggregated $3.69 billion. We had no amounts outstanding under our credit facility and none of our consolidated debt matures until June 2026. We may refinance any of our maturing debt when it comes due or repay it early depending on prevailing market conditions, liquidity requirements and other factors. The amounts involved in connection with these transactions could be material to our consolidated financial statements.
Our credit facility is scheduled to mature in March 2026, and has two six-month extension options. The interest rate on the credit facility is 135 basis points over SOFR with adjustments based on the terms of advances, plus a facility fee of 20 basis points. The credit facility also features a sustainability-linked pricing component such that if we meet certain sustainability performance targets, the applicable per annum interest rate will be reduced by one basis point. The credit facility contains certain restrictions and covenants that require us to maintain, on an ongoing basis, (i) a leverage ratio not to exceed 60%, which may be increased to 65% for any fiscal quarter in which an acquisition of real estate is completed, and for up to the next three subsequent consecutive fiscal quarters, (ii) a secured leverage ratio not to exceed 50%, (iii) a fixed coverage ratio of at least 1.50, (iv) an unsecured leverage ratio not to exceed 60%, which may be increased to 65% for any fiscal quarter in which an acquisition of real estate is completed, and for up to the next three subsequent consecutive fiscal quarters and (v) an unencumbered interest coverage ratio of at least 1.75. The facility also contains customary representations and warranties, limitations on permitted investments and other covenants.
On January 17, 2025, we entered into a consent agreement with the lenders of our credit facility to permit the disposition of a 45.0% equity interest in 900 Third Avenue, one of the assets supporting our credit facility. In connection therewith, we reduced the aggregate commitments under the credit facility to $450,000,000 and modified our credit facility to, among other things, (i) reduce the aggregate unencumbered asset value of all unencumbered eligible properties from $900,000,000 to $500,000,000, (ii) increase the secured leverage ratio as of the last day of any relevant fiscal quarter from 50% to 60%, and (iii) limit borrowings under the credit facility to $200,000,000 through June 30, 2025. There are currently two assets supporting our credit facility. A sale of an equity interest in either of these assets will result in a termination of the existing credit facility. If the existing credit facility is terminated, there is no guarantee we would be able to obtain a new credit facility on favorable terms, or at all.
Dividend Policy
In September 2024, we suspended our regular quarterly dividend. The decision by our board of directors to suspend our regular quarterly dividend aligns with our commitment to fortify our balance sheet and maintain the utmost financial flexibility. The timing and frequency of future dividends will be authorized by our board of directors, in its sole discretion, depending on a variety of factors, including our financial performance, our debt service requirements, our capital expenditure requirements, the requirements to maintain our qualification as a REIT and other factors that our board of directors may deem relevant from time to time.
35
Off Balance Sheet Arrangements
As of March 31, 2025, our unconsolidated joint ventures had $1.81 billion of outstanding indebtedness, of which our share was $636,905,000. In August 2024, the joint venture that owns Market Center, in which we have a 67.0% ownership interest, ceased making debt service payments on the non-recourse mortgage loan due to insufficient property cash flows. In January 2025, the joint venture defaulted on the $416,544,000 mortgage loan, as it was not repaid at maturity. The joint venture is currently working with the lenders to sell the property. We do not guarantee the indebtedness of our unconsolidated joint ventures other than providing customary environmental indemnities and guarantees of specified non-recourse carve outs relating to specified covenants and representations; however, we may elect to fund additional capital to a joint venture through equity contributions (generally on a basis proportionate to our ownership interests), advances or partner loans in order to enable the joint venture to repay this indebtedness upon maturity.
36
Cash Flows
Cash and cash equivalents and restricted cash were $614,007,000 and $555,447,000 as of March 31, 2025 and December 31, 2024, respectively, and $448,011,000 and $509,599,000 as of March 31, 2024 and December 31, 2023, respectively. Cash and cash equivalents and restricted cash increased by $58,560,000 for the three months ended March 31, 2025, and decreased by $61,588,000 for the three months ended March 31, 2024. The following table sets forth the changes in cash flow.
Net cash provided by (used in):
Operating activities
Investing activities
Financing activities
Operating Activities
Three months ended March 31, 2025 – We generated $8,874,000 of cash from operating activities for the three months ended March 31, 2025, primarily from (i) $58,117,000 of net income (before $63,434,000 of non-cash adjustments), and (ii) $202,000 of distributions from unconsolidated joint ventures and real estate related funds, partially offset by (iii) $49,445,000 of net changes in operating assets and liabilities. Non-cash adjustments of $63,434,000 were primarily comprised of depreciation and amortization, loss from unconsolidated joint ventures, straight-lining of rental revenue, amortization of above and below-market leases, net and amortization of stock-based compensation.
Three months ended March 31, 2024 – We generated $69,890,000 of cash from operating activities for the three months ended March 31, 2024, primarily from (i) $68,735,000 of net income (before $52,004,000 of non-cash adjustments) and (ii) $201,000 of distributions from unconsolidated joint ventures and real estate related funds, partially offset by (iii) $954,000 of net changes in operating assets and liabilities. Non-cash adjustments of $52,004,000 were primarily comprised of depreciation and amortization, non-cash gain on extinguishment of a tax liability related to our initial public offering, loss from unconsolidated joint ventures, straight-lining of rental revenue, amortization of above and below-market leases, net and amortization of stock-based compensation.
Investing Activities
Three months ended March 31, 2025 – We used $33,876,000 of cash for investing activities for the three months ended March 31, 2025, for (i) $40,436,000 for additions to real estate, which were comprised of spending for tenant improvements and other building improvements, and (ii) $1,250,000 for contributions of capital to an unconsolidated joint venture, partially offset by (iii) $7,810,000 of a distribution of capital from an unconsolidated joint venture.
Three months ended March 31, 2024 – We used $41,248,000 of cash for investing activities for the three months ended March 31, 2024, for (i) $39,344,000 for additions to real estate, which were comprised of spending for tenant improvements and other building improvements and (ii) $1,904,000 for contributions of capital to an unconsolidated joint venture.
Financing Activities
Three months ended March 31, 2025 – We generated $83,562,000 of cash from financing activities for the three months ended March 31, 2025, from (i) $83,307,000 of proceeds received for the sale of a 45.0% equity interest in 900 Third Avenue, and (ii) $2,250,000 of contributions from noncontrolling interests in 900 Third Avenue, partially offset by (iii) $1,855,000 distributions to noncontrolling interests in 300 Mission Street and 1633 Broadway, and (iv) $140,000 for the repurchase of shares related to stock compensation agreements and related tax withholdings.
Three months ended March 31, 2024 – We used $90,230,000 of cash for financing activities for the three months ended March 31, 2024, for (i) $975,000,000 for repayment of notes and mortgages payable in connection with the modification and extension of the One Market Plaza mortgage loan and $10,638,000 for payment of the related debt issuance costs, (ii) $8,360,000 for dividends and distributions to common stockholders and unitholders, (iii) $8,354,000 for distributions to noncontrolling interests in Fund X, (iv) $809,000 for distributions to noncontrolling interests in 1633 Broadway, and (v) $178,000 for the repurchase of shares related to stock compensation agreements and related tax withholdings, partially offset by (vi) $850,000,000 of proceeds from notes and mortgages payable in connection with the modification and extension of the One Market Plaza mortgage loan, (vii) $62,220,000 of contributions from noncontrolling interests in One Market Plaza and (viii) $889,000 of contributions from noncontrolling interests in Fund X.
37
Non-GAAP Financial Measures
We use and present NOI, Same Store NOI, FFO and Core FFO, as supplemental measures of our performance. The summary below describes our use of these measures, provides information regarding why we believe these measures are meaningful supplemental measures of our performance and reconciles these measures from net income or loss, the most directly comparable GAAP measure. 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.
Net Operating Income (“NOI”)
We use NOI 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 include property-related expenses such as cleaning, security, repairs and maintenance, utilities, property administration and real estate taxes). We also use 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 Paramount’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 the property level. The following tables present reconciliations of our net income or loss to Paramount's share of NOI and Cash NOI for the three months ended March 31, 2025 and 2024.
Reconciliation of net (loss) income to NOI and Cash NOI:
(10,214
17,905
(13,008
Adjustments to arrive at NOI:
(5,025
39,814
17,962
1,103
Income from unconsolidated joint ventures
(59
(1,848
(3,815
(730
(557
(2,528
29,925
11,633
1,642
366
355
102
Amounts attributable to noncontrolling interests in consolidated joint ventures
Adjustments to arrive at Cash NOI:
Straight-line rent adjustments (including our share of unconsolidated joint ventures)
707
(3,661
4,261
107
Amortization of above and below-market leases, net (including our share of unconsolidated joint ventures)
(1,554
(747
(807
(2,264
(355
(1,909
Paramount's share of Cash NOI
83,677
53,890
31,367
(1,580
38
Reconciliation of net income (loss) to NOI and Cash NOI:
Net income (loss)
(1,278
12,989
5,020
Adjustments to arrive at NOI and Cash NOI:
(6,248
41,294
18,570
1,250
Loss (income) from unconsolidated joint ventures
1,686
302
(642
(19,420
(793
(386
(18,241
26,573
12,945
751
347
334
116
(3,387
(3,909
106
(1,658
(615
(1,043
(112
551
88,977
63,733
26,164
(920
39
The tables below set forth the reconciliations of our share of NOI to our share of Same Store NOI and Same Store Cash NOI for the three months ended March 31, 2025 and 2024. These metrics are used to measure the operating performance of our properties that were owned by us in a similar manner during both the current and prior reporting periods, and represent our share of Same Store NOI and Same Store Cash 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 vary from period to period. Same Store Cash NOI excludes the effect of non-cash items such as the straight-line rent adjustments and the amortization of above and below-market leases.
Paramount's share of NOI for the three months ended
March 31, 2025 (1)
Non-same store adjustments:
(1,168
1,719
1,687
Paramount's share of Same Store NOI for the
three months ended March 31, 2025
87,339
57,517
March 31, 2024 (1)
Dispositions
(1,574
(944
1,304
278
1,026
three months ended March 31, 2024
92,369
66,129
% (Decrease) increase
40
Paramount's share of Cash NOI for the three months ended
1,612
1,580
Paramount's share of Same Store Cash NOI for the
84,121
52,754
(1,515
1,198
920
87,716
61,552
41
Funds from Operations (“FFO”) and Core Funds from Operations (“Core FFO”)
FFO is a supplemental measure of our performance. We present FFO 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. In addition, we present Core FFO as 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 and adjustments, realized and unrealized gains or losses on real estate related 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.
FFO and Core FFO are presented as supplemental financial measures and do not fully represent our operating performance. Neither FFO nor Core FFO is intended to be a measure of cash flow or liquidity. Please refer to our consolidated financial statements, prepared in accordance with GAAP, for purposes of evaluating our financial condition, results of operations and cash flows. The following table presents a reconciliation of net income or loss to FFO and Core FFO for the periods set forth below.
Reconciliation of net (loss) income to FFO and Core FFO:
Real estate depreciation and amortization (including our share of unconsolidated joint ventures)
61,902
64,424
Amounts attributable to noncontrolling interests in consolidated joint ventures and real estate related funds
(16,377
(15,885
FFO attributable to the Operating Partnership
40,208
65,270
Amounts attributable to noncontrolling interests in the Operating Partnership
(3,328
(5,449
FFO attributable to common stockholders
36,880
59,821
Per diluted share
0.17
0.28
Adjustments for non-core items:
Write-off of deferred financing costs
1,289
Other, net (primarily adjustments related to unconsolidated joint ventures)
(187
2,471
Core FFO attributable to the Operating Partnership
41,310
52,304
(3,419
(4,366
Core FFO attributable to common stockholders
37,891
47,938
0.22
Reconciliation of weighted average shares outstanding:
Weighted average shares outstanding
Effect of dilutive securities
68,946
80,723
Denominator for FFO and Core FFO per diluted share
218,074,393
42
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Market risk is the risk of loss from adverse changes in market prices and interest rates. Our future earnings, cash flows and fair values relevant to financial instruments are dependent upon prevalent market interest rates. Our primary market risk results from our indebtedness, which bears interest at both fixed and variable rates. We manage our market risk on variable rate debt by entering into interest rate swap agreements to fix the rate or interest rate cap agreements to limit exposure to increases in rates, on all or a portion of the debt for varying periods through maturity. This in turn, reduces the risks of variability of cash flows created by variable rate debt and mitigates the risk of increases in interest rates. Our objective when undertaking such arrangements is to reduce our floating rate exposure and we do not enter into hedging arrangements for speculative purposes. Subject to maintaining our status as a REIT for federal income tax purposes, we may utilize swap and cap arrangements in the future.
The following table summarizes our consolidated debt, the weighted average interest rates and the fair value as of March 31, 2025.
Fixed Rate Debt:
486,180
225,870
834,413
1,053,343
Total Fixed Rate Debt
3.58%
732,050
2,832,050
2,599,806
Variable Rate Debt:
1301 Avenue of the Americas (1)
863,166
Total Variable Rate Debt
Total Consolidated Debt
1,592,050
In addition to the above, our unconsolidated joint ventures had $1.81 billion of outstanding indebtedness as of March 31, 2025, of which our share was $636,905,000.
The table below provides additional details on our interest rate caps as of March 31, 2025.
The following table summarizes our share of total indebtedness and the effect to interest expense of a 100 basis point increase in variable rates.
(Amounts in thousands, except per share amount)
Balance
WeightedAverageInterest Rate
Effect of 1% Increase inBase Rates
Paramount's share of consolidated debt:
Variable rate
6.27
8,600
Fixed rate
2,113,680
3.45
2,973,680
4.26
Paramount's share of debt of non-consolidated
entities (non-recourse):
380,382
6.09
3,804
379,216
6.31
256,523
4.05
256,040
4.03
636,905
5.27
635,256
5.39
Noncontrolling interests' share of above
(1,027
Total change in annual net income
11,377
44
ITEM 4. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
We maintain disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) that are designed to ensure that information required to be disclosed in our reports under the Exchange Act is processed, recorded, summarized and reported within the time periods specified in the SEC’s rules and regulations, and that such information is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.
As of March 31, 2025, the end of the period covered by this Quarterly Report on Form 10-Q, we carried out an evaluation, under the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer, regarding the effectiveness of our disclosure controls and procedures. Based on the foregoing evaluation, as of the end of the period covered by this Quarterly Report, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed by us in reports filed or submitted under the Exchange Act is processed, recorded, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure.
Changes in Internal Control over Financial Reporting
There were no changes to our internal control over financial reporting in connection with the evaluation referenced above that occurred during the period covered by this Quarterly Report on Form 10-Q that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
PART II – OTHER INFORMATION
ITEM 1.LEGAL PROCEEDINGS
From time to time, we are a party to various claims and routine litigation arising in the ordinary course of business. As of March 31, 2025, we do not believe that the results of any such claims or litigation, individually or in the aggregate, will have a material adverse effect on our business, financial position, results of operations or cash flows.
ITEM 1A.RISK FACTORS
Except to the extent updated below or to the extent additional factual information disclosed elsewhere in this Quarterly Report on Form 10-Q relates to such risk factors (including, without limitation, the matters discussed in Part I, “Item 2—Management’s Discussion and Analysis of Financial Condition and Results of Operations”), there were no material changes to the risk factors disclosed in Part I, “Item 1A. Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2024.
ITEM 2.UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
Recent Sales of Unregistered Securities
During the three months ended March 31, 2025, we issued an aggregate of 51,722 shares of common stock in exchange for 51,722 common units of our Operating Partnership held by certain limited partners. These shares were issued in reliance on an exemption from registration under Section 4(a)(2) of the Securities Act. We relied on this exemption based upon factual representations received from the limited partners who received the shares of common stock.
Recent Purchases of Equity Securities
The following table summarizes our purchase of equity securities in the three months ended March 31, 2025.
Period
(a)Total Number of Shares Purchased
(b)Average Price Paid per Share
(c)Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
(d)Maximum Approximate Dollar Value of Shares that May Yet be Available for Future Purchased under the Plans or Programs (2)
January 2025
15,000,000
February 2025
29,894
4.73
March 2025
ITEM 3.DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4.MINE SAFETY DISCLOSURES
ITEM 5.OTHER INFORMATION
Rule 10b5-1 Trading Arrangement
During the three months ended March 31, 2025, none of our directors or officers (as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934) adopted, terminated or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of Regulation S-K).
ITEM 6.EXHIBITS
Exhibits required by Item 601 of Regulation S-K are filed, or furnished as indicated, herewith or incorporated herein by reference and are listed in the following Exhibit Index:
EXHIBIT INDEX
ExhibitNumber
Exhibit Description
10.1*
Consent Agreement dated as of January 17, 2025 among Paramount Group Operating Partnership LP, as the Borrower, the Lenders party thereto, and Bank of America, N.A., as Administrative Agent.
10.2†
Second Amended and Restated Employment Agreement among Paramount Group, Inc., Paramount Group Operating Partnership LP and Wilbur Paes, effective March 10, 2025, incorporated by reference to Exhibit 10.1 to the Registrant’s Form 8-K filed with the SEC on March 11, 2025.
10.3†
Amended and Restated Employment Agreement among Paramount Group, Inc., Paramount Group Operating Partnership LP and Peter Brindley, effective March 10, 2025, incorporated by reference to Exhibit 10.2 to the Registrant’s Form 8-K filed with the SEC on March 11, 2025.
31.1*
Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*
Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**
Certification of Chief Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**
Certification of Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101*
The following materials from the Paramount Group, Inc. Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 formatted in Inline XBRL: (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Equity, (v) the Consolidated Statements of Cash Flows, and (vi) the related Notes to Consolidated Financial Statements. The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
104*
Cover Page Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101.)
_______________________________
*
Filed herewith
**
Furnished herewith
†
Indicates management contract or compensatory plan or arrangement
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Paramount Group, Inc.
Date:
April 30, 2025
By:
/s/ Wilbur Paes
Chief Operating Officer, Chief Financial Officer and Treasurer
Wilbur Paes
(duly authorized officer and principal financial officer)
/s/ Ermelinda Berberi
Senior Vice President, Chief Accounting Officer
Ermelinda Berberi
(duly authorized officer and principal accounting officer)