Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 15, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | PARAMOUNT GROUP, INC. | |
Trading Symbol | PGRE | |
Title of 12(b) Security | Common stock of Paramount Group, Inc.,$0.01 par value per share | |
Security Exchange Name | NYSE | |
Entity Central Index Key | 0001605607 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity File Number | 001-36746 | |
Entity Tax Identification Number | 32-0439307 | |
Entity Address, Address Line One | 1633 Broadway | |
Entity Address, Address Line Two | Suite 1801 | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10019 | |
City Area Code | 212 | |
Local Phone Number | 237-3100 | |
Entity Incorporation, State or Country Code | MD | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding | 219,069,624 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | |
Real estate, at cost: | |||
Land | $ 1,966,237 | $ 1,966,237 | |
Buildings and improvements | 6,080,289 | 6,061,824 | |
Rental property, at cost | 8,046,526 | 8,028,061 | |
Accumulated depreciation and amortization | (1,152,264) | (1,112,977) | |
Real estate, net | 6,894,262 | 6,915,084 | |
Cash and cash equivalents | 461,995 | 524,900 | |
Restricted cash | 6,331 | 4,766 | |
Investments in unconsolidated joint ventures | 423,219 | 408,096 | |
Investments in unconsolidated real estate funds | 11,573 | 11,421 | |
Accounts and other receivables | 11,678 | 15,582 | |
Due from affiliates | 49,316 | ||
Deferred rent receivable | 330,944 | 332,735 | |
Deferred charges, net of accumulated amortization of $57,324 and $70,666 | 120,557 | 122,177 | |
Intangible assets, net of accumulated amortization of $226,822 and $252,142 | 112,108 | 119,413 | |
Other assets | 76,599 | 40,388 | |
Total assets | [1] | 8,498,582 | 8,494,562 |
Liabilities and Equity | |||
Notes and mortgages payable, net of unamortized deferred financing costs of $21,206 and $22,380 | 3,836,794 | 3,835,620 | |
Revolving credit facility | 0 | 0 | |
Accounts payable and accrued expenses | 111,171 | 116,192 | |
Dividends and distributions payable | 18,777 | 16,895 | |
Intangible liabilities, net of accumulated amortization of $95,530 and $105,790 | 43,196 | 45,328 | |
Other liabilities | 25,621 | 25,495 | |
Total liabilities | [1] | 4,035,559 | 4,039,530 |
Commitments and contingencies | |||
Paramount Group, Inc. equity: | |||
Common stock $0.01 par value per share; authorized 900,000,000 shares; issued and outstanding 219,077,024 and 218,991,795 shares in 2022 and 2021, respectively | 2,190 | 2,190 | |
Additional paid-in-capital | 4,120,077 | 4,122,680 | |
Earnings less than distributions | (552,732) | (538,845) | |
Accumulated other comprehensive income | 28,466 | 2,138 | |
Paramount Group, Inc. equity | 3,598,001 | 3,588,163 | |
Noncontrolling interests in: | |||
Consolidated joint ventures | 417,577 | 428,833 | |
Consolidated real estate fund | 80,909 | 81,925 | |
Operating Partnership (22,325,258 and 21,740,404 units outstanding) | 366,536 | 356,111 | |
Total equity | 4,463,023 | 4,455,032 | |
Total liabilities and equity | $ 8,498,582 | $ 8,494,562 | |
[1] | Represents the consolidated assets and liabilities of Paramount Group Operating Partnership LP, a Delaware limited partnership (the “Operating Partnership”). The Operating Partnership is a consolidated variable interest entity (“VIE”), of which we are the sole general partner and own approximately 90.8% as of March 31, 2022. As of March 31, 2022, the assets and liabilities of the Operating Partnership include $3,987,609 and $2,575,355 of assets and liabilities, respectively, of certain VIEs that are consolidated by the Operating Partnership. See Note 11, Variable Interest Entities (“VIEs”). |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2021 | ||
Deferred charges, accumulated amortization | $ 57,324 | $ 70,666 | |
Intangible assets, accumulated amortization | 226,822 | 252,142 | |
Notes and mortgages payable, net of unamortized deferred financing costs | 21,206 | 22,380 | |
Intangible liabilities, accumulated amortization | $ 95,530 | $ 105,790 | |
Common stock, par value | $ 0.01 | $ 0.01 | |
Common stock, shares authorized | 900,000,000 | 900,000,000 | |
Common stock, shares issued | 219,077,024 | 218,991,795 | |
Common stock, shares outstanding | 219,077,024 | 218,991,795 | |
Operating partnership, units outstanding | 22,325,258 | 21,740,404 | |
Total assets | [1] | $ 8,498,582 | $ 8,494,562 |
Total liabilities | [1] | 4,035,559 | 4,039,530 |
Variable Interest Entities [Member] | |||
Total assets | 3,987,609 | 4,025,856 | |
Total liabilities | $ 2,575,355 | $ 2,576,710 | |
Variable Interest Entities [Member] | Paramount Group Operating Partnership [Member] | |||
Percentage of ownership in operating partnership | 90.80% | ||
[1] | Represents the consolidated assets and liabilities of Paramount Group Operating Partnership LP, a Delaware limited partnership (the “Operating Partnership”). The Operating Partnership is a consolidated variable interest entity (“VIE”), of which we are the sole general partner and own approximately 90.8% as of March 31, 2022. As of March 31, 2022, the assets and liabilities of the Operating Partnership include $3,987,609 and $2,575,355 of assets and liabilities, respectively, of certain VIEs that are consolidated by the Operating Partnership. See Note 11, Variable Interest Entities (“VIEs”). |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues: | ||
Rental revenue | $ 169,922 | $ 173,146 |
Fee and other income | 13,763 | 8,020 |
Total revenues | 183,685 | 181,166 |
Expenses: | ||
Operating | 66,661 | 66,618 |
Depreciation and amortization | 55,624 | 58,305 |
General and administrative | 15,645 | 14,364 |
Transaction related costs | 117 | 281 |
Total expenses | 138,047 | 139,568 |
Other income (expense): | ||
Loss from unconsolidated joint ventures | (5,113) | (5,316) |
Income from unconsolidated real estate funds | 170 | 180 |
Interest and other income, net | 231 | 1,302 |
Interest and debt expense | (34,277) | (34,739) |
Net income before income taxes | 6,649 | 3,025 |
Income tax expense | (527) | (1,141) |
Net income | 6,122 | 1,884 |
Less net (income) loss attributable to noncontrolling interests in: | ||
Consolidated joint ventures | (3,425) | (5,728) |
Consolidated real estate fund | 1,016 | (85) |
Operating Partnership | (342) | 351 |
Net income (loss) attributable to common stockholders | $ 3,371 | $ (3,578) |
Income (Loss) per Common Share - Basic: | ||
Income (loss) per common share | $ 0.02 | $ (0.02) |
Weighted average shares outstanding | 218,782,296 | 218,666,005 |
Income (Loss) per Common Share - Diluted: | ||
Income (loss) per common share | $ 0.02 | $ (0.02) |
Weighted average shares outstanding | 218,840,094 | 218,666,005 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 6,122 | $ 1,884 |
Other comprehensive income: | ||
Change in value of interest rate swaps and interest rate caps | 18,545 | |
Pro rata share of other comprehensive income of unconsolidated joint ventures | 10,453 | 4,384 |
Comprehensive income | 35,120 | 6,268 |
Less comprehensive (income) loss attributable to noncontrolling interests in: | ||
Consolidated joint ventures | (3,425) | (5,728) |
Consolidated real estate fund | 1,016 | (97) |
Operating Partnership | (3,012) | (41) |
Comprehensive income attributable to common stockholders | $ 29,699 | $ 402 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid in Capital [Member] | Earnings Less than Distributions [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest [Member]Consolidated Joint Ventures [Member] | Noncontrolling Interest [Member]Consolidated Real Estate Fund [Member] | Noncontrolling Interest [Member]Operating Partnership [Member] |
Beginning balance at Dec. 31, 2020 | $ 4,515,734 | $ 2,188 | $ 4,120,173 | $ (456,393) | $ (12,791) | $ 437,161 | $ 79,017 | $ 346,379 |
Common stock, shares outstanding at Dec. 31, 2020 | 218,817,000 | |||||||
Net income (loss) | 1,884 | (3,578) | 5,728 | 85 | (351) | |||
Common shares issued under Omnibus share plan, net of shares withheld for taxes | (200) | $ 1 | (201) | |||||
Common shares issued under Omnibus share plan, net of shares withheld for taxes | 133,000 | |||||||
Dividends and distributions | (16,889) | (15,327) | (1,562) | |||||
Contributions from noncontrolling interests | 121 | 121 | ||||||
Distributions to noncontrolling interests | (4,625) | (4,625) | ||||||
Pro rata share of other comprehensive income of unconsolidated joint ventures | 4,384 | 3,982 | 12 | 390 | ||||
Amortization of equity awards | 5,526 | 307 | 5,219 | |||||
Reallocation of noncontrolling interest | (9,336) | 9,336 | ||||||
Other | (552) | 552 | ||||||
Ending balance at Mar. 31, 2021 | 4,505,935 | $ 2,189 | 4,111,144 | (476,051) | (8,809) | 438,937 | 79,114 | 359,411 |
Common stock, shares outstanding at Mar. 31, 2021 | 218,950,000 | |||||||
Beginning balance at Dec. 31, 2021 | $ 4,455,032 | $ 2,190 | 4,122,680 | (538,845) | 2,138 | 428,833 | 81,925 | 356,111 |
Common stock, shares outstanding at Dec. 31, 2021 | 218,991,795 | 218,992,000 | ||||||
Net income (loss) | $ 6,122 | 3,371 | 3,425 | (1,016) | 342 | |||
Common shares issued under Omnibus share plan, net of shares withheld for taxes | (280) | (280) | ||||||
Common shares issued under Omnibus share plan, net of shares withheld for taxes | 85,000 | |||||||
Dividends and distributions | (18,777) | (16,978) | (1,799) | |||||
Distributions to noncontrolling interests | (14,681) | (14,681) | ||||||
Change in value of interest rate swaps and interest rate caps | 18,545 | 16,837 | 1,708 | |||||
Pro rata share of other comprehensive income of unconsolidated joint ventures | 10,453 | 9,491 | 962 | |||||
Amortization of equity awards | 6,609 | 322 | 6,287 | |||||
Reallocation of noncontrolling interest | (2,925) | 2,925 | ||||||
Ending balance at Mar. 31, 2022 | $ 4,463,023 | $ 2,190 | $ 4,120,077 | $ (552,732) | $ 28,466 | $ 417,577 | $ 80,909 | $ 366,536 |
Common stock, shares outstanding at Mar. 31, 2022 | 219,077,024 | 219,077,000 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) (Parentheticals) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement Of Stockholders Equity [Abstract] | ||
Dividends and distributions, Per share and unit | $ 0.0775 | $ 0.07 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash Flows from Operating Activities: | ||
Net income | $ 6,122 | $ 1,884 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 55,624 | 58,305 |
Straight-lining of rental revenue | 1,789 | (7,282) |
Amortization of stock-based compensation expense | 6,562 | 5,486 |
Loss from unconsolidated joint ventures | 5,113 | 5,316 |
Amortization of deferred financing costs | 1,538 | 2,319 |
Distributions of earnings from unconsolidated real estate funds | 150 | 137 |
Distributions of earnings from unconsolidated joint ventures | 18 | |
Amortization of above and below-market leases, net | (358) | (855) |
Income from unconsolidated real estate funds | (170) | (180) |
Realized and unrealized gains on marketable securities | (858) | |
Other non-cash adjustments | 302 | 735 |
Changes in operating assets and liabilities: | ||
Accounts and other receivables | 3,904 | 4,850 |
Deferred charges | (1,086) | (159) |
Other assets | (17,688) | (29,311) |
Accounts payable and accrued expenses | (3,162) | 16,997 |
Other liabilities | 16 | 946 |
Net cash provided by operating activities | 58,674 | 58,330 |
Cash Flows from Investing Activities: | ||
Due from affiliates | (49,316) | |
Additions to real estate | (29,025) | (19,339) |
Investments in unconsolidated joint venture | (9,684) | |
Contributions of capital to unconsolidated real estate funds | (133) | |
Purchases of marketable securities | (9,562) | |
Sales of marketable securities | 2,557 | |
Net cash used in investing activities | (88,158) | (26,344) |
Cash Flows from Financing Activities: | ||
Dividends paid to common stockholders | (15,329) | (15,317) |
Distributions paid to common unitholders | (1,566) | (1,479) |
Distributions to noncontrolling interests | (14,681) | (4,625) |
Contributions from noncontrolling interests | 121 | |
Repurchase of shares related to stock compensation agreements and related tax withholdings | (280) | (200) |
Proceeds from notes and mortgages payable | 12,430 | |
Net cash used in financing activities | (31,856) | (9,070) |
Net (decrease) increase in cash and cash equivalents and restricted cash | (61,340) | 22,916 |
Cash and cash equivalents and restricted cash at beginning of period | 529,666 | 465,324 |
Cash and cash equivalents and restricted cash at end of period | 468,326 | 488,240 |
Reconciliation of Cash and Cash Equivalents and Restricted Cash: | ||
Cash and cash equivalents at beginning of period | 524,900 | 434,530 |
Restricted cash at beginning of period | 4,766 | 30,794 |
Cash and cash equivalents and restricted cash at beginning of period | 529,666 | 465,324 |
Cash and cash equivalents at end of period | 461,995 | 464,652 |
Restricted cash at end of period | 6,331 | 23,588 |
Cash and cash equivalents and restricted cash at end of period | 468,326 | 488,240 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash payments for interest | 33,190 | 32,401 |
Cash payments for income taxes, net of refunds | 1,193 | 24 |
Non-Cash Transactions: | ||
Dividends and distributions declared but not yet paid | 18,777 | 16,889 |
Change in value of interest rate swaps and interest rate caps | 18,545 | |
Write-off of fully amortized and/or depreciated assets | 7,084 | 2,142 |
Additions to real estate included in accounts payable and accrued expenses | $ 6,868 | $ 6,223 |
Organization and Business
Organization and Business | 3 Months Ended |
Mar. 31, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization And Business | 1. Organization and Business 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 90.8% of, the Operating Partnership as of March 31, 2022. As of March 31, 2022, we owned and/or managed a portfolio aggregating 13.9 million square feet comprised of: • Eight • Six • Six Additionally, we have an investment management business, where we serve as the general partner of real estate funds for institutional investors and high net-worth individuals. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
Basis Of Presentation And Significant Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | 2. Basis of Presentation and Significant Accounting Policies 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, 2021 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, 2021, 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, 2021. 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, 2022, are not necessarily indicative of the operating results for the full year. Recently Issued Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, which adds Accounting Standards Codification (“ASC”) Topic 848, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting In August 2020, the FASB issued ASU 2020-06, an update to ASC Topic 470, Subtopic - 20, Debt - Debt with Conversion and Other Options Derivatives and Hedging - Contracts in Entity's Own Equity Earnings Per Share, |
Investments in Unconsolidated J
Investments in Unconsolidated Joint Ventures | 3 Months Ended |
Mar. 31, 2022 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investments in Unconsolidated Joint Ventures | 3 . Investments in Unconsolidated Joint Ventures On February 24, 2022, a joint venture, in which we own a 9.2% interest, acquired a 26,000 square foot retail condominium at 1600 Broadway in Manhattan for $191,500,000. 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. (Amounts in thousands) Paramount As of Our Share of Investments: Ownership March 31, 2022 December 31, 2021 712 Fifth Avenue (1) 50.0% $ - $ - Market Center 67.0% 193,462 185,344 55 Second Street (2) 44.1% 87,605 88,284 111 Sutter Street 49.0% 34,425 35,182 1600 Broadway (2)(3) 9.2% 9,753 - 60 Wall Street (2) 5.0% 19,253 19,230 One Steuart Lane (2) 35.0% (4) 75,159 76,428 Oder-Center, Germany (2) 9.5% 3,562 3,628 Investments in unconsolidated joint ventures $ 423,219 $ 408,096 (Amounts in thousands) For the Three Months Ended March 31, Our Share of Net Income (Loss): 2022 2021 712 Fifth Avenue (1) $ - $ - Market Center (2,363 ) (4,130 ) 55 Second Street (2) (679 ) (622 ) 111 Sutter Street (778 ) (490 ) 1600 Broadway (2)(3) (48 ) - 60 Wall Street (2) 12 17 One Steuart Lane (2) (1,269 ) (93 ) Oder-Center, Germany (2) 12 2 Loss from unconsolidated joint ventures $ (5,113 ) $ (5,316 ) (1) At December 31, 2021, our basis in the joint venture that owns 712 Fifth Avenue was negative $14,329. Since we have no further obligation to fund additional capital to the joint venture, we no longer recognize our proportionate share of earnings from the joint venture. (2) As of March 31, 2022, the carrying amount of our investments in 55 Second Street, 1600 Broadway, 60 Wall Street, One Steuart Lane and Oder-Center is greater than our share of equity in these investments by $476, $722, $2,604, $720 and $4,536, respectively, and primarily represents the unamortized portion of our capitalized acquisition costs. (3) Acquired on February 24, 2022. (4) Represents our consolidated Residential Development Fund’s (“RDF”) economic interest in One Steuart Lane, a for-sale residential condominium project. Our economic interest in One Steuart Lane (based on our 7.4% ownership interest in RDF) is 2.6%. 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. (Amounts in thousands) As of Balance Sheets: March 31, 2022 December 31, 2021 Real estate, net $ 2,387,526 $ 2,246,152 Cash and cash equivalents and restricted cash 224,149 216,910 Intangible assets, net 85,553 58,590 For-sale residential condominium units (1) 346,054 359,638 Other assets 66,040 46,646 Total assets $ 3,109,322 $ 2,927,936 Notes and mortgages payable, net $ 1,870,635 $ 1,791,404 Intangible liabilities, net 16,358 18,397 Other liabilities 61,459 61,097 Total liabilities 1,948,452 1,870,898 Equity 1,160,870 1,057,038 Total liabilities and equity $ 3,109,322 $ 2,927,936 (Amounts in thousands) For the Three Months Ended March 31, Income Statements: 2022 2021 Revenues: Rental revenue $ 57,520 $ 56,528 Other income 18,582 (2) 757 Total revenues 76,102 57,285 Expenses: Operating 42,508 (2) 25,110 Depreciation and amortization 26,898 27,453 Total expenses 69,406 52,563 Other income (expense): Interest and other loss (42 ) (33 ) Interest and debt expense (17,598 ) (13,740 ) Net loss before income taxes (10,944 ) (9,051 ) Income tax expense (29 ) (16 ) Net loss $ (10,973 ) $ (9,067 ) (1) Represents the cost of residential condominium units at One Steuart Lane that are available for sale. (2) Includes proceeds and cost of sales from the sale of residential condominium units at One Steuart Lane. |
Investments in Unconsolidated R
Investments in Unconsolidated Real Estate Funds | 3 Months Ended |
Mar. 31, 2022 | |
Real Estate Fund [Abstract] | |
Investments in Unconsolidated Real Estate Funds | 4 . Investments in Unconsolidated Real Estate Funds We are the general partner and investment manager of Paramount Group Real Estate Fund VIII, LP (“Fund VIII”) and Paramount Group Real Estate Fund X, LP and its parallel fund, Paramount Group Real Estate Fund X-ECI, LP, (collectively, “Fund X”), our Alternative Investment Funds, which invest in mortgage and mezzanine loans and preferred equity investments. While Fund VIII’s investment period has ended, Fund X’s investment period ends in December 2025. As of March 31, 2022, Fund X has $192,000,000 of capital committed, of which $81,925,000 has been invested and $101,117,000 has been reserved for future funding. Our ownership interest in Fund VIII and Fund X was approximately 1.3% and 7.8%, respectively, as of March 31, 2022. As of March 31, 2022 and December 31, 2021, our share of the investments in the unconsolidated real estate funds aggregated $11,573,000 and $11,421,000, respectively. We recognized income of $170,000 and $180,000 for the three months ended March 31, 2022 and 2021, respectively. |
Intangible Assets and Liabiliti
Intangible Assets and Liabilities | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Liabilities | 5 . Intangible Assets and Liabilities 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. As of (Amounts in thousands) March 31, 2022 December 31, 2021 Intangible assets: Gross amount $ 338,930 $ 371,555 Accumulated amortization (226,822 ) (252,142 ) $ 112,108 $ 119,413 Intangible liabilities: Gross amount $ 138,726 $ 151,118 Accumulated amortization (95,530 ) (105,790 ) $ 43,196 $ 45,328 For the Three Months Ended March 31, (Amounts in thousands) 2022 2021 Amortization of above and below-market leases, net (component of "rental revenue") $ 358 $ 855 Amortization of acquired in-place leases (component of "depreciation and amortization") 5,531 7,219 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, 2022 through December 31, 2022, and each of the five succeeding years commencing from January 1, 2023. (Amounts in thousands) For the Year Ending December 31, Above and Below-Market Leases, Net In-Place Leases 2022 $ 985 $ 16,113 2023 5,080 17,705 2024 6,020 14,248 2025 4,674 10,451 2026 2,801 7,896 2027 2,489 7,252 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | 6 . Debt The following table summarizes our consolidated outstanding debt. Interest Rate Maturity Fixed/ as of As of (Amounts in thousands) Date Variable Rate March 31, 2022 March 31, 2022 December 31, 2021 Notes and mortgages payable: 1633 Broadway (1) Dec-2029 Fixed 2.99 % $ 1,250,000 $ 1,250,000 One Market Plaza (1) Feb-2024 Fixed 4.03 % 975,000 975,000 1301 Avenue of the Americas Aug-2026 Fixed (2) 2.46 % 500,000 500,000 Aug-2026 L + 356 bps (3) 3.85 % 360,000 360,000 3.04 % 860,000 860,000 31 West 52nd Street Jun-2026 Fixed 3.80 % 500,000 500,000 300 Mission Street (1) Oct-2023 Fixed 3.65 % 273,000 273,000 Total notes and mortgages payable 3.42 % 3,858,000 3,858,000 Less: unamortized deferred financing costs (21,206 ) (22,380 ) Total notes and mortgages payable, net $ 3,836,794 $ 3,835,620 $750 Million Revolving Credit Facility Mar-2026 SOFR + 115 bps n/a $ - $ - (1) Our ownership interests in 1633 Broadway, One Market Plaza and 300 Mission Street are 90.0%, 49.0% and 31.1%, respectively. (2) Represents variable rate loans that have been fixed by interest rate swaps through August 2024. See Note 7, Derivative Instruments and Hedging Activities. (3) Represents variable rate loans, where LIBOR has been capped at 2.00% Derivative Instruments and Hedging Activities . |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | 7 . Derivative Instruments and Hedging Activities We have entered into interest rate swap agreements with an aggregate notional amount of $500,000,000 to fix LIBOR at 0.46% through August 2024. We also entered into interest rate cap agreements with an aggregate notional amount of $360,000,000 to cap LIBOR at 2.00% through August 2023. 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 income of $18,545,000 for the three months ended March 31, 2022, from the changes in fair value of these derivative financial instruments. See Note 9, Accumulated Other Comprehensive Income The tables below provide additional details on our interest rate swaps and interest rate caps that are designated as cash flow hedges. Notional Effective Maturity Benchmark Strike Fair Value as of Property Amount Date Date Rate Rate March 31, 2022 December 31, 2021 (Amounts in thousands) 1301 Avenue of the Americas $ 500,000 Jul-2021 Aug-2024 LIBOR 0.46 % $ 22,760 $ 6,691 Total interest rate swap assets designated as cash flow hedges (included in "other assets") $ 22,760 $ 6,691 Notional Effective Maturity Benchmark Strike Fair Value as of Property Amount Date Date Rate Rate March 31, 2022 December 31, 2021 (Amounts in thousands) 1301 Avenue of the Americas $ 360,000 Jul-2021 Aug-2023 LIBOR 2.00 % $ 2,782 $ 306 Total interest rate cap assets designated as cash flow hedges (included in "other assets") $ 2,782 $ 306 We have agreements with various derivative counterparties that contain provisions wherein a default on our indebtedness could be deemed a default on our derivative obligations, which would require us to settle our derivative obligations for cash. As of March 31, 2022, we did not have any obligations relating to our interest rate swaps or interest rate caps that contained such provisions. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2022 | |
Stockholders Equity Note [Abstract] | |
Equity | 8 . Equity Stock Repurchase Program On November 5, 2019, we received authorization from our Board of Directors to repurchase up to $200,000,000 of our common stock, from time to time, in the open market or in privately negotiated transactions. During 2020, we repurchased 13,813,158 common shares at a weighted average price of $8.69 per share, or $120,000,000 in the aggregate. We have not repurchased any shares since December 2020. We have $80,000,000 available for future repurchases under the existing program. The amount and timing of future 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. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2022 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Income | 9 . Accumulated Other Comprehensive Income The following table sets forth changes in accumulated other comprehensive income by component for the three months ended March 31, 2022 and 2021, including amounts attributable to noncontrolling interests in the Operating Partnership. For the Three Months Ended March 31, (Amounts in thousands) 2022 2021 Amount of income related to the cash flow hedges recognized in other comprehensive income $ 18,173 (1) $ - Amounts reclassified from accumulated other comprehensive income increasing interest and debt expense 372 (1) - Amount of income related to unconsolidated joint ventures recognized in other comprehensive income (2) 9,495 3,422 Amounts reclassified from accumulated other comprehensive income increasing loss from unconsolidated joint ventures (2) 958 962 (1) Represents amounts related to interest rate swaps with an aggregate notional value of $500,000 and interest rate caps with an aggregate notional value of $360,000, which were designated as cash flow hedges. (2) Primarily represents amounts related to an interest rate swap with a notional value of $402,000, which was designated as a cash flow hedge. |
Noncontrolling Interests
Noncontrolling Interests | 3 Months Ended |
Mar. 31, 2022 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | 1 0 . Noncontrolling Interests Consolidated Joint Ventures Noncontrolling interests in consolidated joint ventures consist of equity interests held by third parties in 1633 Broadway, One Market Plaza and 300 Mission Street. As of March 31, 2022 and December 31, 2021, noncontrolling interests in our consolidated joint ventures aggregated $417,577,000 and $428,833,000, respectively. Consolidated Real Estate Fund Noncontrolling interests in our consolidated real estate fund consists of equity interests held by third parties in our Residential Development Fund. As of March 31, 2022 and December 31, 2021, the noncontrolling interest in our consolidated real estate fund aggregated $80,909,000 and $81,925,000, respectively. Operating Partnership 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, 2022 and December 31, 2021, noncontrolling interests in the Operating Partnership on our consolidated balance sheets had a carrying amount of $366,536,000 and $356,111,000, respectively, and a redemption value of $243,569,000 and $181,315,000, respectively, based on the closing share price of our common stock on the New York Stock Exchange at the end of each period. |
Variable Interest Entities ("VI
Variable Interest Entities ("VIEs") | 3 Months Ended |
Mar. 31, 2022 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities ("VIEs") | 1 1 . Variable Interest Entities (“VIEs”) 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 90.8% of, the Operating Partnership as of March 31, 2022. 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, 2022 and December 31, 2021, the Operating Partnership held interests in consolidated VIEs owning properties and a real estate fund 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. As of (Amounts in thousands) March 31, 2022 December 31, 2021 Real estate, net $ 3,398,283 $ 3,415,735 Cash and cash equivalents and restricted cash 176,487 198,154 Investments in unconsolidated joint ventures 75,159 76,428 Accounts and other receivables 5,199 6,801 Deferred rent receivable 195,640 197,794 Deferred charges, net 52,101 53,013 Intangible assets, net 59,418 62,380 Other assets 25,322 15,551 Total VIE assets $ 3,987,609 $ 4,025,856 Notes and mortgages payable, net $ 2,488,379 $ 2,487,871 Accounts payable and accrued expenses 54,127 54,738 Intangible liabilities, net 26,395 27,674 Other liabilities 6,454 6,427 Total VIE liabilities $ 2,575,355 $ 2,576,710 Unconsolidated VIEs As of March 31, 2022, the Operating Partnership held variable interests in entities that own our unconsolidated real estate funds that were deemed to be VIEs. The following table summarizes our investments in these unconsolidated real estate funds and the maximum risk of loss from these investments. As of (Amounts in thousands) March 31, 2022 December 31, 2021 Investments $ 11,573 $ 11,421 Asset management fees and other receivables 49,330 (1) 9 Maximum risk of loss $ 60,903 $ 11,430 (1) Includes $49,316 note receivable from Fund X. See Note 19, Related Parties . |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 1 2 . Fair Value Measurements 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, 2022 (Amounts in thousands) Total Level 1 Level 2 Level 3 Interest rate swap assets (included in "other assets") $ 22,760 $ - $ 22,760 $ - Interest rate cap assets (included in "other assets") 2,782 - 2,782 - Total assets $ 25,542 $ - $ 25,542 $ - As of December 31, 2021 (Amounts in thousands) Total Level 1 Level 2 Level 3 Interest rate swap assets (included in "other assets") $ 6,691 $ - $ 6,691 $ - Interest rate cap assets (included in "other assets") 306 - 306 - Total assets $ 6,997 $ - $ 6,997 $ - 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 revolving credit facility. The following table summarizes the carrying amounts and fair value of these financial instruments as of the dates set forth below. As of March 31, 2022 As of December 31, 2021 (Amounts in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Notes and mortgages payable $ 3,858,000 $ 3,776,544 $ 3,858,000 $ 3,893,252 Revolving credit facility - - - - Total liabilities $ 3,858,000 $ 3,776,544 $ 3,858,000 $ 3,893,252 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Leases | 1 3 . Leases 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 early terminate, but such options generally impose an economic penalty on the tenant upon exercising. Rental revenue is recognized in accordance with ASC Topic 842, Leases, The following table sets forth the details of our rental revenue. For the Three Months Ended March 31, (Amounts in thousands) 2022 2021 Rental revenue: Fixed $ 154,777 $ 160,629 Variable 15,145 12,517 Total rental revenue $ 169,922 $ 173,146 The following table is a schedule of future undiscounted cash flows under non-cancellable operating leases in effect as of March 31, 2022, for the nine-month period from April 1, 2022 through December 31, 2022, and each of the five succeeding years and thereafter commencing January 1, 2023. (Amounts in thousands) 2022 $ 477,510 2023 628,122 2024 621,054 2025 566,419 2026 470,246 2027 402,583 Thereafter 1,957,941 Total $ 5,123,875 |
Fee and Other Income
Fee and Other Income | 3 Months Ended |
Mar. 31, 2022 | |
Revenues [Abstract] | |
Fee and Other Income | 14. The following table sets forth the details of our fee and other income. For the Three Months Ended March 31, (Amounts in thousands) 2022 2021 Fee income: Asset management $ 2,885 $ 3,486 Property management 2,219 2,196 Acquisition, disposition, leasing and other 6,884 988 Total fee income 11,988 6,670 Other income (1) 1,775 1,350 Total fee and other income $ 13,763 $ 8,020 (1) Primarily comprised of (i) tenant requested services, including cleaning, overtime heating and cooling and (ii) parking income. |
Interest and Other Income, net
Interest and Other Income, net | 3 Months Ended |
Mar. 31, 2022 | |
Interest And Other Income [Abstract] | |
Interest and Other Income, net | 1 5 . Interest and Other Income, net The following table sets forth the details of interest and other income, net. For the Three Months Ended March 31, (Amounts in thousands) 2022 2021 Interest income, net $ 231 $ 390 Mark-to-market of investments in our deferred compensation plans (1) - 912 Total interest and other income, net $ 231 $ 1,302 (1) The change resulting from the mark-to-market of the deferred compensation plan assets is entirely offset by the change in deferred compensation plan liabilities, which is included as a component of “general and administrative” expenses on our consolidated statements of income. In December 2021, the deferred compensation plan was terminated and the net proceeds were distributed to the plan participants. |
Interest and Debt Expense
Interest and Debt Expense | 3 Months Ended |
Mar. 31, 2022 | |
Interest And Debt Expense [Abstract] | |
Interest and Debt Expense | 1 6 . Interest and Debt Expense The following table sets forth the details of interest and debt expense. For the Three Months Ended March 31, (Amounts in thousands) 2022 2021 Interest expense $ 32,739 $ 32,420 Amortization of deferred financing costs 1,538 2,319 Total interest and debt expense $ 34,277 $ 34,739 |
Incentive Compensation
Incentive Compensation | 3 Months Ended |
Mar. 31, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Incentive Compensation | 1 7 . Incentive Compensation Stock-Based Compensation Our Amended and Restated 2014 Equity Incentive 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 performance-based LTIP units, time-based LTIP units and time-based appreciation only LTIP (“AOLTIP”) units. We account for all stock-based compensation in accordance with ASC 718, Compensation – Stock Compensation 2022 Equity Grants 2022 Performance-Based Awards Program (“2022 Performance Program”) On January 13, 2022, the Compensation Committee of our Board of Directors (the “Compensation Committee”) approved the 2022 Performance Program, a multi-year performance-based long-term incentive compensation program. Under the 2022 Performance Program, participants may earn awards in the form of LTIP units based on our achievement of rigorous Net Operating Income (“NOI”) goals over a three-year four-year Time-Based Unit Awards Program (LTIP Units, AOLTIP Units and Restricted Stock) On January 13, 2022, we also granted an aggregate of 626,942 LTIP units, 2,703,499 AOLTIP units and 120,243 shares of Restricted Stock to our executive officers and employees that will vest over a period of three to four years. The fair value of LTIP units, AOLTIP units and restricted stock on the date of grant were $5,313,000, $5,831,000, and $1,119,000, respectively, and these awards are being amortized into expense on a straight-line basis over the vesting period. Completion of the 2019 Performance-Based Awards Program (“2019 Performance Program”) On December 31, 2021, the performance measurement period for the 2019 Performance Program ended. On January 13, 2022, the Compensation Committee determined that the performance goals set forth in the 2019 Performance Program were not met. Accordingly, all of the LTIP units that were granted on January 14, 2019, were forfeited, with no awards being earned. These awards had a grant date fair value of $8,106,000 and a remaining unrecognized compensation cost of $713,000 as of March 31, 2022, which will be amortized over a weighted-average period of 0.8 years. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 1 8 . Earnings Per Share The following table summarizes our net income (loss) and the number of common shares used in the computation of basic and diluted income (loss) per common share, which includes the weighted average number of common shares outstanding and the effect of dilutive potential common shares, if any. For the Three Months Ended March 31, (Amounts in thousands, except per share amounts) 2022 2021 Numerator: Net income (loss) attributable to common stockholders $ 3,371 $ (3,578 ) Earnings allocated to unvested participating securities (21 ) (19 ) Numerator for income (loss) per common share - basic and diluted 3,350 (3,597 ) Denominator: Denominator for basic loss per common share - weighted average shares 218,782 218,666 Effect of dilutive stock-based compensation plans (1) 58 - Denominator for diluted loss per common share - weighted average shares 218,840 218,666 Income (loss) per common share - basic and diluted $ 0.02 $ (0.02 ) (1) The effect of dilutive securities and 23,609 weighted average share equivalents for the three months ended March 31, 2022 and 2021, respectively, as their effect was anti-dilutive. |
Related Parties
Related Parties | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Parties | 19. Related Parties 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 $489,000 and $517,000 for the three months ended March 31, 2022 and 2021, respectively, in connection with these agreements, which is included as a component of “fee and other income” on our consolidated statements of income. As of March 31, 2022 and December 31, 2021, amounts owed to us under these agreements aggregated $752,000 and $484,000, 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 funds. We recognized fee income of $10,783,000 and $5,586,000 for the three months ended March 31, 2022 and 2021, respectively, in connection with these agreements, which is included as a component of “fee and other income” on our consolidated statements of income. “accounts and other receivables” on our consolidated balance sheets. Hamburg Trust Consulting HTC GmbH (“HTC”) We have an agreement with HTC, a licensed broker in Germany, to supervise selling efforts for our joint ventures and private equity real estate funds (or investments in feeder vehicles for these funds) to investors in Germany, including distribution of securitized notes of feeder vehicles for Fund X. Pursuant to this agreement, we have agreed to pay HTC for the costs incurred plus a mark-up of 10%. HTC is 100% owned by Albert Behler, our Chairman, Chief Executive Officer and President. We incurred costs aggregating $389,000 and $122,000 for the three months ended March 31, 2022 and 2021, respectively, in connection with this agreement. As of March 31, 2022 and December 31, 2021, we owed $389,000 and $523,000, respectively, to HTC under this agreement, which are included as a component of “accounts payable and accrued expenses” on our consolidated balance sheets. Mannheim Trust A subsidiary of Mannheim Trust leases office space at 712 Fifth Avenue , our 50.0% owned unconsolidated joint venture, pursuant to a lease agreement which expires in April 2023. Dr. Martin Bussmann (a member of our Board of Directors) is also a trustee and a director of Mannheim Trust. We recognized $91,000 in each of the three months ended March 31, 2022 and 2021 for our share of rental income pursuant to this lease. Due from Affiliates At March 31, 2022, we had a $49,316,000 note receivable from Fund X that bears interest at the Secured Overnight Financing Rate (“SOFR”) plus 220 basis points and is included as “due from affiliates” on our consolidated balance sheet. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 2 0 . Commitments and Contingencies 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 the 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. While we do carry commercial general liability insurance, property insurance and terrorism insurance with respect to our properties, 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, including claims arising specifically from the formation transactions, in connection with our initial public offering, 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 in connection with the formation transactions, 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 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 revolving 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, 2022, we believe we are in compliance with all of our covenants. Transfer Tax Assessments During 2017, the New York City Department of Finance issued Notices of Determination (“Notices”) assessing additional transfer taxes (including interest and penalties) in connection with the transfer of interests in certain properties during our 2014 initial public offering. We believe, after consultation with legal counsel, that the likelihood of a loss is reasonably possible, and while it is not possible to predict the outcome of these Notices, we estimate the range of loss could be between $0 and $53,300,000. Since no amount in this range is a better estimate than any other amount within the range, we have not accrued any liability arising from potential losses relating to these Notices in our consolidated financial statements. |
Segments
Segments | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segments | 2 1 . Segments Our reportable segments are separated by region, based on the two 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 Net Operating Income (“NOI”) for each reportable segment for the periods set forth below. For the Three Months Ended March 31, 2022 (Amounts in thousands) Total New York San Francisco Other Property-related revenues $ 171,697 $ 115,405 $ 57,089 $ (797 ) Property-related operating expenses (66,661 ) (48,211 ) (17,292 ) (1,158 ) NOI from unconsolidated joint ventures (excluding One Steuart Lane) 11,234 2,818 8,354 62 NOI (1) $ 116,270 $ 70,012 $ 48,151 $ (1,893 ) For the Three Months Ended March 31, 2021 (Amounts in thousands) Total New York San Francisco Other Property-related revenues $ 174,496 $ 111,837 $ 63,472 $ (813 ) Property-related operating expenses (66,618 ) (49,024 ) (16,938 ) (656 ) NOI from unconsolidated joint ventures 10,326 2,821 7,537 (32 ) NOI (1) $ 118,204 $ 65,634 $ 54,071 $ (1,501 ) (1) 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 use NOI internally as a performance measure and believe it provides useful information to investors regarding our financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level. Other real estate companies may use different methodologies for calculating NOI and, accordingly, our presentation of NOI may not be comparable to other real estate companies. The following table provides a reconciliation of NOI to net income (loss) attributable to common stockholders for the periods set forth below. For the Three Months Ended March 31, (Amounts in thousands) 2022 2021 NOI $ 116,270 $ 118,204 Add (subtract) adjustments to arrive to net income: Fee income 11,988 6,670 Depreciation and amortization expense (55,624 ) (58,305 ) General and administrative expenses (15,645 ) (14,364 ) NOI from unconsolidated joint ventures (excluding One Steuart Lane) (11,234 ) (10,326 ) Loss from unconsolidated joint ventures (5,113 ) (5,316 ) Interest and other income, net 231 1,302 Interest and debt expense (34,277 ) (34,739 ) Other, net 53 (101 ) Net income before income taxes 6,649 3,025 Income tax expense (527 ) (1,141 ) Net income 6,122 1,884 Less: net (income) loss attributable to noncontrolling interests in: Consolidated joint ventures (3,425 ) (5,728 ) Consolidated real estate fund 1,016 (85 ) Operating Partnership (342 ) 351 Net income (loss) attributable to common stockholders $ 3,371 $ (3,578 ) The following table provides the total assets for each of our reportable segments as of the dates set forth below. (Amounts in thousands) Total Assets as of: Total New York San Francisco Other March 31, 2022 $ 8,498,582 $ 5,364,204 $ 2,689,173 $ 445,205 December 31, 2021 8,494,562 5,336,210 2,696,131 462,221 |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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, 2021 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, 2021, as filed with the SEC. |
Significant Accounting Policies | 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, 2021. |
Use of Estimates | 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, 2022, are not necessarily indicative of the operating results for the full year. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, which adds Accounting Standards Codification (“ASC”) Topic 848, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting In August 2020, the FASB issued ASU 2020-06, an update to ASC Topic 470, Subtopic - 20, Debt - Debt with Conversion and Other Options Derivatives and Hedging - Contracts in Entity's Own Equity Earnings Per Share, |
Investments in Unconsolidated_2
Investments in Unconsolidated Joint Ventures (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Summary of Financial Information of Unconsolidated Joint Ventures | 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. (Amounts in thousands) Paramount As of Our Share of Investments: Ownership March 31, 2022 December 31, 2021 712 Fifth Avenue (1) 50.0% $ - $ - Market Center 67.0% 193,462 185,344 55 Second Street (2) 44.1% 87,605 88,284 111 Sutter Street 49.0% 34,425 35,182 1600 Broadway (2)(3) 9.2% 9,753 - 60 Wall Street (2) 5.0% 19,253 19,230 One Steuart Lane (2) 35.0% (4) 75,159 76,428 Oder-Center, Germany (2) 9.5% 3,562 3,628 Investments in unconsolidated joint ventures $ 423,219 $ 408,096 (Amounts in thousands) For the Three Months Ended March 31, Our Share of Net Income (Loss): 2022 2021 712 Fifth Avenue (1) $ - $ - Market Center (2,363 ) (4,130 ) 55 Second Street (2) (679 ) (622 ) 111 Sutter Street (778 ) (490 ) 1600 Broadway (2)(3) (48 ) - 60 Wall Street (2) 12 17 One Steuart Lane (2) (1,269 ) (93 ) Oder-Center, Germany (2) 12 2 Loss from unconsolidated joint ventures $ (5,113 ) $ (5,316 ) (1) At December 31, 2021, our basis in the joint venture that owns 712 Fifth Avenue was negative $14,329. Since we have no further obligation to fund additional capital to the joint venture, we no longer recognize our proportionate share of earnings from the joint venture. (2) As of March 31, 2022, the carrying amount of our investments in 55 Second Street, 1600 Broadway, 60 Wall Street, One Steuart Lane and Oder-Center is greater than our share of equity in these investments by $476, $722, $2,604, $720 and $4,536, respectively, and primarily represents the unamortized portion of our capitalized acquisition costs. (3) Acquired on February 24, 2022. (4) Represents our consolidated Residential Development Fund’s (“RDF”) economic interest in One Steuart Lane, a for-sale residential condominium project. Our economic interest in One Steuart Lane (based on our 7.4% ownership interest in RDF) is 2.6%. |
Unconsolidated Joint Ventures [Member] | |
Summary of Financial Information of Unconsolidated Joint Ventures | 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. (Amounts in thousands) As of Balance Sheets: March 31, 2022 December 31, 2021 Real estate, net $ 2,387,526 $ 2,246,152 Cash and cash equivalents and restricted cash 224,149 216,910 Intangible assets, net 85,553 58,590 For-sale residential condominium units (1) 346,054 359,638 Other assets 66,040 46,646 Total assets $ 3,109,322 $ 2,927,936 Notes and mortgages payable, net $ 1,870,635 $ 1,791,404 Intangible liabilities, net 16,358 18,397 Other liabilities 61,459 61,097 Total liabilities 1,948,452 1,870,898 Equity 1,160,870 1,057,038 Total liabilities and equity $ 3,109,322 $ 2,927,936 (Amounts in thousands) For the Three Months Ended March 31, Income Statements: 2022 2021 Revenues: Rental revenue $ 57,520 $ 56,528 Other income 18,582 (2) 757 Total revenues 76,102 57,285 Expenses: Operating 42,508 (2) 25,110 Depreciation and amortization 26,898 27,453 Total expenses 69,406 52,563 Other income (expense): Interest and other loss (42 ) (33 ) Interest and debt expense (17,598 ) (13,740 ) Net loss before income taxes (10,944 ) (9,051 ) Income tax expense (29 ) (16 ) Net loss $ (10,973 ) $ (9,067 ) (1) Represents the cost of residential condominium units at One Steuart Lane that are available for sale. (2) Includes proceeds and cost of sales from the sale of residential condominium units at One Steuart Lane. |
Intangible Assets and Liabili_2
Intangible Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets and Liabilities | 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. As of (Amounts in thousands) March 31, 2022 December 31, 2021 Intangible assets: Gross amount $ 338,930 $ 371,555 Accumulated amortization (226,822 ) (252,142 ) $ 112,108 $ 119,413 Intangible liabilities: Gross amount $ 138,726 $ 151,118 Accumulated amortization (95,530 ) (105,790 ) $ 43,196 $ 45,328 For the Three Months Ended March 31, (Amounts in thousands) 2022 2021 Amortization of above and below-market leases, net (component of "rental revenue") $ 358 $ 855 Amortization of acquired in-place leases (component of "depreciation and amortization") 5,531 7,219 |
Schedule of Estimated Annual Amortization of Acquired Below-Market Leases, Net of Acquired Above-Market Leases and In Place Leases | 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, 2022 through December 31, 2022, and each of the five succeeding years commencing from January 1, 2023. (Amounts in thousands) For the Year Ending December 31, Above and Below-Market Leases, Net In-Place Leases 2022 $ 985 $ 16,113 2023 5,080 17,705 2024 6,020 14,248 2025 4,674 10,451 2026 2,801 7,896 2027 2,489 7,252 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Outstanding Debt | The following table summarizes our consolidated outstanding debt. Interest Rate Maturity Fixed/ as of As of (Amounts in thousands) Date Variable Rate March 31, 2022 March 31, 2022 December 31, 2021 Notes and mortgages payable: 1633 Broadway (1) Dec-2029 Fixed 2.99 % $ 1,250,000 $ 1,250,000 One Market Plaza (1) Feb-2024 Fixed 4.03 % 975,000 975,000 1301 Avenue of the Americas Aug-2026 Fixed (2) 2.46 % 500,000 500,000 Aug-2026 L + 356 bps (3) 3.85 % 360,000 360,000 3.04 % 860,000 860,000 31 West 52nd Street Jun-2026 Fixed 3.80 % 500,000 500,000 300 Mission Street (1) Oct-2023 Fixed 3.65 % 273,000 273,000 Total notes and mortgages payable 3.42 % 3,858,000 3,858,000 Less: unamortized deferred financing costs (21,206 ) (22,380 ) Total notes and mortgages payable, net $ 3,836,794 $ 3,835,620 $750 Million Revolving Credit Facility Mar-2026 SOFR + 115 bps n/a $ - $ - (1) Our ownership interests in 1633 Broadway, One Market Plaza and 300 Mission Street are 90.0%, 49.0% and 31.1%, respectively. (2) Represents variable rate loans that have been fixed by interest rate swaps through August 2024. See Note 7, Derivative Instruments and Hedging Activities. (3) Represents variable rate loans, where LIBOR has been capped at 2.00% Derivative Instruments and Hedging Activities . |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Interest Rate Swaps [Member] | |
Derivative [Line Items] | |
Schedule of Interest Rate Swaps and Interest Rate Caps | The tables below provide additional details on our interest rate swaps and interest rate caps that are designated as cash flow hedges. Notional Effective Maturity Benchmark Strike Fair Value as of Property Amount Date Date Rate Rate March 31, 2022 December 31, 2021 (Amounts in thousands) 1301 Avenue of the Americas $ 500,000 Jul-2021 Aug-2024 LIBOR 0.46 % $ 22,760 $ 6,691 Total interest rate swap assets designated as cash flow hedges (included in "other assets") $ 22,760 $ 6,691 |
Interest Rate Caps [Member] | |
Derivative [Line Items] | |
Schedule of Interest Rate Swaps and Interest Rate Caps | Notional Effective Maturity Benchmark Strike Fair Value as of Property Amount Date Date Rate Rate March 31, 2022 December 31, 2021 (Amounts in thousands) 1301 Avenue of the Americas $ 360,000 Jul-2021 Aug-2023 LIBOR 2.00 % $ 2,782 $ 306 Total interest rate cap assets designated as cash flow hedges (included in "other assets") $ 2,782 $ 306 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive Income by Component | The following table sets forth changes in accumulated other comprehensive income by component for the three months ended March 31, 2022 and 2021, including amounts attributable to noncontrolling interests in the Operating Partnership. For the Three Months Ended March 31, (Amounts in thousands) 2022 2021 Amount of income related to the cash flow hedges recognized in other comprehensive income $ 18,173 (1) $ - Amounts reclassified from accumulated other comprehensive income increasing interest and debt expense 372 (1) - Amount of income related to unconsolidated joint ventures recognized in other comprehensive income (2) 9,495 3,422 Amounts reclassified from accumulated other comprehensive income increasing loss from unconsolidated joint ventures (2) 958 962 (1) Represents amounts related to interest rate swaps with an aggregate notional value of $500,000 and interest rate caps with an aggregate notional value of $360,000, which were designated as cash flow hedges. (2) Primarily represents amounts related to an interest rate swap with a notional value of $402,000, which was designated as a cash flow hedge. |
Variable Interest Entities ("_2
Variable Interest Entities ("VIEs") (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Consolidated VIEs [Member] | |
Summary of Assets and Liabilities of Consolidated Variable Interest Entities | The following table summarizes the assets and liabilities of consolidated VIEs of the Operating Partnership As of (Amounts in thousands) March 31, 2022 December 31, 2021 Real estate, net $ 3,398,283 $ 3,415,735 Cash and cash equivalents and restricted cash 176,487 198,154 Investments in unconsolidated joint ventures 75,159 76,428 Accounts and other receivables 5,199 6,801 Deferred rent receivable 195,640 197,794 Deferred charges, net 52,101 53,013 Intangible assets, net 59,418 62,380 Other assets 25,322 15,551 Total VIE assets $ 3,987,609 $ 4,025,856 Notes and mortgages payable, net $ 2,488,379 $ 2,487,871 Accounts payable and accrued expenses 54,127 54,738 Intangible liabilities, net 26,395 27,674 Other liabilities 6,454 6,427 Total VIE liabilities $ 2,575,355 $ 2,576,710 |
Unconsolidated VIEs [Member] | |
Summary of Investments in Unconsolidated Real Estate Funds and Maximum Risk of Loss from Investments | The following table summarizes our investments in these unconsolidated real estate funds and the maximum risk of loss from these investments. As of (Amounts in thousands) March 31, 2022 December 31, 2021 Investments $ 11,573 $ 11,421 Asset management fees and other receivables 49,330 (1) 9 Maximum risk of loss $ 60,903 $ 11,430 (1) Includes $49,316 note receivable from Fund X. See Note 19, Related Parties . |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of 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, 2022 (Amounts in thousands) Total Level 1 Level 2 Level 3 Interest rate swap assets (included in "other assets") $ 22,760 $ - $ 22,760 $ - Interest rate cap assets (included in "other assets") 2,782 - 2,782 - Total assets $ 25,542 $ - $ 25,542 $ - As of December 31, 2021 (Amounts in thousands) Total Level 1 Level 2 Level 3 Interest rate swap assets (included in "other assets") $ 6,691 $ - $ 6,691 $ - Interest rate cap assets (included in "other assets") 306 - 306 - Total assets $ 6,997 $ - $ 6,997 $ - |
Summary of Carrying Amounts and Fair Value of Financial Instruments | The following table summarizes the carrying amounts and fair value of these financial instruments as of the dates set forth below. As of March 31, 2022 As of December 31, 2021 (Amounts in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Notes and mortgages payable $ 3,858,000 $ 3,776,544 $ 3,858,000 $ 3,893,252 Revolving credit facility - - - - Total liabilities $ 3,858,000 $ 3,776,544 $ 3,858,000 $ 3,893,252 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Schedule of Rental Revenues | The following table sets forth the details of our rental revenue. For the Three Months Ended March 31, (Amounts in thousands) 2022 2021 Rental revenue: Fixed $ 154,777 $ 160,629 Variable 15,145 12,517 Total rental revenue $ 169,922 $ 173,146 |
Schedule of Future Undiscounted Cash Flows Under Non-Cancellable Operating Leases | The following table is a schedule of future undiscounted cash flows under non-cancellable operating leases in effect as of March 31, 2022, for the nine-month period from April 1, 2022 through December 31, 2022, and each of the five succeeding years and thereafter commencing January 1, 2023. (Amounts in thousands) 2022 $ 477,510 2023 628,122 2024 621,054 2025 566,419 2026 470,246 2027 402,583 Thereafter 1,957,941 Total $ 5,123,875 |
Fee and Other Income (Tables)
Fee and Other Income (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Disaggregation Of Revenue [Abstract] | |
Summary of Fee and Other Income | The following table sets forth the details of our fee and other income. For the Three Months Ended March 31, (Amounts in thousands) 2022 2021 Fee income: Asset management $ 2,885 $ 3,486 Property management 2,219 2,196 Acquisition, disposition, leasing and other 6,884 988 Total fee income 11,988 6,670 Other income (1) 1,775 1,350 Total fee and other income $ 13,763 $ 8,020 (1) Primarily comprised of (i) tenant requested services, including cleaning, overtime heating and cooling and (ii) parking income. |
Interest and Other Income, net
Interest and Other Income, net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Interest And Other Income [Abstract] | |
Schedule of Interest and Other Income, net | The following table sets forth the details of interest and other income, net. For the Three Months Ended March 31, (Amounts in thousands) 2022 2021 Interest income, net $ 231 $ 390 Mark-to-market of investments in our deferred compensation plans (1) - 912 Total interest and other income, net $ 231 $ 1,302 (1) The change resulting from the mark-to-market of the deferred compensation plan assets is entirely offset by the change in deferred compensation plan liabilities, which is included as a component of “general and administrative” expenses on our consolidated statements of income. In December 2021, the deferred compensation plan was terminated and the net proceeds were distributed to the plan participants. |
Interest and Debt Expense (Tabl
Interest and Debt Expense (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Interest And Debt Expense [Abstract] | |
Details of Interest and Debt Expense | The following table sets forth the details of interest and debt expense. For the Three Months Ended March 31, (Amounts in thousands) 2022 2021 Interest expense $ 32,739 $ 32,420 Amortization of deferred financing costs 1,538 2,319 Total interest and debt expense $ 34,277 $ 34,739 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Summary of Computation of Earnings Per Share | The following table summarizes our net income (loss) and the number of common shares used in the computation of basic and diluted income (loss) per common share, which includes the weighted average number of common shares outstanding and the effect of dilutive potential common shares, if any. For the Three Months Ended March 31, (Amounts in thousands, except per share amounts) 2022 2021 Numerator: Net income (loss) attributable to common stockholders $ 3,371 $ (3,578 ) Earnings allocated to unvested participating securities (21 ) (19 ) Numerator for income (loss) per common share - basic and diluted 3,350 (3,597 ) Denominator: Denominator for basic loss per common share - weighted average shares 218,782 218,666 Effect of dilutive stock-based compensation plans (1) 58 - Denominator for diluted loss per common share - weighted average shares 218,840 218,666 Income (loss) per common share - basic and diluted $ 0.02 $ (0.02 ) (1) The effect of dilutive securities and 23,609 weighted average share equivalents for the three months ended March 31, 2022 and 2021, respectively, as their effect was anti-dilutive. |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of NOI for Each Reportable Segment Information | The following tables provide Net Operating Income (“NOI”) for each reportable segment for the periods set forth below. For the Three Months Ended March 31, 2022 (Amounts in thousands) Total New York San Francisco Other Property-related revenues $ 171,697 $ 115,405 $ 57,089 $ (797 ) Property-related operating expenses (66,661 ) (48,211 ) (17,292 ) (1,158 ) NOI from unconsolidated joint ventures (excluding One Steuart Lane) 11,234 2,818 8,354 62 NOI (1) $ 116,270 $ 70,012 $ 48,151 $ (1,893 ) For the Three Months Ended March 31, 2021 (Amounts in thousands) Total New York San Francisco Other Property-related revenues $ 174,496 $ 111,837 $ 63,472 $ (813 ) Property-related operating expenses (66,618 ) (49,024 ) (16,938 ) (656 ) NOI from unconsolidated joint ventures 10,326 2,821 7,537 (32 ) NOI (1) $ 118,204 $ 65,634 $ 54,071 $ (1,501 ) (1) 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 use NOI internally as a performance measure and believe it provides useful information to investors regarding our financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level. Other real estate companies may use different methodologies for calculating NOI and, accordingly, our presentation of NOI may not be comparable to other real estate companies. |
Schedule of Reconciliation of NOI to Net Income (Loss) Attributable to Common Stockholders | The following table provides a reconciliation of NOI to net income (loss) attributable to common stockholders for the periods set forth below. For the Three Months Ended March 31, (Amounts in thousands) 2022 2021 NOI $ 116,270 $ 118,204 Add (subtract) adjustments to arrive to net income: Fee income 11,988 6,670 Depreciation and amortization expense (55,624 ) (58,305 ) General and administrative expenses (15,645 ) (14,364 ) NOI from unconsolidated joint ventures (excluding One Steuart Lane) (11,234 ) (10,326 ) Loss from unconsolidated joint ventures (5,113 ) (5,316 ) Interest and other income, net 231 1,302 Interest and debt expense (34,277 ) (34,739 ) Other, net 53 (101 ) Net income before income taxes 6,649 3,025 Income tax expense (527 ) (1,141 ) Net income 6,122 1,884 Less: net (income) loss attributable to noncontrolling interests in: Consolidated joint ventures (3,425 ) (5,728 ) Consolidated real estate fund 1,016 (85 ) Operating Partnership (342 ) 351 Net income (loss) attributable to common stockholders $ 3,371 $ (3,578 ) |
Schedule of Total Assets for Each Reportable Segments Information | The following table provides the total assets for each of our reportable segments as of the dates set forth below. (Amounts in thousands) Total Assets as of: Total New York San Francisco Other March 31, 2022 $ 8,498,582 $ 5,364,204 $ 2,689,173 $ 445,205 December 31, 2021 8,494,562 5,336,210 2,696,131 462,221 |
Organization and Business - Add
Organization and Business - Additional Information (Details) ft² in Millions | 3 Months Ended |
Mar. 31, 2022ft²Properties | |
Real Estate Properties [Line Items] | |
Area of office and retail properties | 13.9 |
New York [Member] | |
Real Estate Properties [Line Items] | |
Number of Real Estate Properties | Properties | 8 |
Area of office and retail properties | 8.6 |
New York [Member] | Office Space [Member] | |
Real Estate Properties [Line Items] | |
Area of office and retail properties | 8.2 |
New York [Member] | Retail, Theater and Amenity Space [Member] | |
Real Estate Properties [Line Items] | |
Area of office and retail properties | 0.4 |
San Francisco [Member] | |
Real Estate Properties [Line Items] | |
Number of Real Estate Properties | Properties | 6 |
Area of office and retail properties | 4.3 |
San Francisco [Member] | Office Space [Member] | |
Real Estate Properties [Line Items] | |
Area of office and retail properties | 4.1 |
San Francisco [Member] | Retail Space [Member] | |
Real Estate Properties [Line Items] | |
Area of office and retail properties | 0.2 |
New York And Washington, D.C [Member] | |
Real Estate Properties [Line Items] | |
Number of real estate properties managed | Properties | 6 |
Area of office and retail properties | 1 |
Variable Interest Entities [Member] | Paramount Group Operating Partnership [Member] | |
Real Estate Properties [Line Items] | |
Percentage of ownership in operating partnership | 90.80% |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Accounting Standards Update [Extensible Enumeration] | us-gaap:AccountingStandardsUpdate202006Member |
Change in accounting principle, accounting standards update, adopted [true false] | true |
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2022 |
Change in accounting principle, accounting standards update, immaterial effect [true false] | true |
Investments in Unconsolidated_3
Investments in Unconsolidated Joint Ventures - Additional Information (Details) | Mar. 31, 2022ft² | Feb. 24, 2022USD ($)ft² |
Schedule Of Equity Method Investments [Line Items] | ||
Area of office and retail properties | ft² | 13,900,000 | |
Mars, Inc [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Lease term | 15 years | |
1600 Broadway [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method paramount ownership percentage | 9.20% | 9.20% |
Area of office and retail properties | ft² | 26,000 | |
Sale agreement amount | $ | $ 191,500,000 | |
Interest-only loan, fixed amount | $ | $ 98,000,000 | |
Interest-only loan, fixed rate | 3.45% | |
Interest-only loan, Term | 10 years |
Investments in Unconsolidated_4
Investments in Unconsolidated Joint Ventures - Summary of Investments and Income from Investments In Unconsolidated Joint Ventures (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Feb. 24, 2022 | Dec. 31, 2021 | |
Schedule Of Equity Method Investments [Line Items] | ||||
Investments in unconsolidated joint ventures | $ 423,219 | $ 408,096 | ||
Loss from unconsolidated joint ventures | $ (5,113) | $ (5,316) | ||
712 Fifth Avenue [Member] | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Equity method paramount ownership percentage | 50.00% | |||
Market Center [Member] | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Equity method paramount ownership percentage | 67.00% | |||
Investments in unconsolidated joint ventures | $ 193,462 | 185,344 | ||
Loss from unconsolidated joint ventures | $ (2,363) | (4,130) | ||
55 Second Street [Member] | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Equity method paramount ownership percentage | 44.10% | |||
Investments in unconsolidated joint ventures | $ 87,605 | 88,284 | ||
Loss from unconsolidated joint ventures | $ (679) | (622) | ||
111 Sutter Street [Member] | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Equity method paramount ownership percentage | 49.00% | |||
Investments in unconsolidated joint ventures | $ 34,425 | 35,182 | ||
Loss from unconsolidated joint ventures | $ (778) | (490) | ||
1600 Broadway [Member] | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Equity method paramount ownership percentage | 9.20% | 9.20% | ||
Investments in unconsolidated joint ventures | $ 9,753 | |||
Loss from unconsolidated joint ventures | $ (48) | |||
60 Wall Street [Member] | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Equity method paramount ownership percentage | 5.00% | |||
Investments in unconsolidated joint ventures | $ 19,253 | 19,230 | ||
Loss from unconsolidated joint ventures | $ 12 | 17 | ||
One Steuart Lane [Member] | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Equity method paramount ownership percentage | 35.00% | |||
Investments in unconsolidated joint ventures | $ 75,159 | 76,428 | ||
Loss from unconsolidated joint ventures | $ (1,269) | (93) | ||
Oder-Center, Germany [Member] | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Equity method paramount ownership percentage | 9.50% | |||
Investments in unconsolidated joint ventures | $ 3,562 | $ 3,628 | ||
Loss from unconsolidated joint ventures | $ 12 | $ 2 |
Investments in Unconsolidated_5
Investments in Unconsolidated Joint Ventures - Summary of Investments and Income from Investments In Unconsolidated Joint Ventures (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Schedule Of Equity Method Investments [Line Items] | |||
Distributions of earnings from unconsolidated joint ventures | $ 18 | ||
Loss from unconsolidated joint ventures | (5,113) | $ (5,316) | |
712 Fifth Avenue [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Distributions made in excess of share of earnings recognized negative basis | 14,912 | $ 14,329 | |
Income (Loss) of investment accounted under equity method accounting | (1,166) | ||
Proportionate share of income (loss) of equity method investment not recognized | $ (583) | ||
Equity method ownership percentage | 50.00% | ||
55 Second Street [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Loss from unconsolidated joint ventures | $ (679) | (622) | |
Difference between carrying amount of investment and equity | $ 476 | ||
Equity method ownership percentage | 44.10% | ||
1600 Broadway [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Difference between carrying amount of investment and equity | $ 722 | ||
60 Wall Street [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Loss from unconsolidated joint ventures | 12 | 17 | |
Difference between carrying amount of investment and equity | $ 2,604 | ||
Equity method ownership percentage | 5.00% | ||
One Steuart Lane [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Loss from unconsolidated joint ventures | $ (1,269) | (93) | |
Difference between carrying amount of investment and equity | $ 720 | ||
Equity method ownership percentage | 35.00% | ||
Equity method economic interest percentage | 2.60% | ||
One Steuart Lane [Member] | Residential Development Fund’s [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Equity method ownership percentage | 7.40% | ||
Oder-Center, Germany [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Loss from unconsolidated joint ventures | $ 12 | $ 2 | |
Difference between carrying amount of investment and equity | $ 4,536 | ||
Equity method ownership percentage | 9.50% |
Investments in Unconsolidated_6
Investments in Unconsolidated Joint Ventures - Summary of Financial Information of Unconsolidated Joint Ventures (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | ||
Schedule Of Equity Method Investments [Line Items] | ||||
Total assets | [1] | $ 8,498,582 | $ 8,494,562 | |
Total liabilities | [1] | 4,035,559 | 4,039,530 | |
Equity | 3,598,001 | 3,588,163 | ||
Total liabilities and equity | 8,498,582 | 8,494,562 | ||
Rental revenue | 169,922 | $ 173,146 | ||
Other income | 1,775 | 1,350 | ||
Total revenues | 183,685 | 181,166 | ||
Operating | 66,661 | 66,618 | ||
Depreciation and amortization | 55,624 | 58,305 | ||
Total expenses | 138,047 | 139,568 | ||
Interest and other loss | 231 | 1,302 | ||
Interest and debt expense | (34,277) | (34,739) | ||
Net loss before income taxes | 6,649 | 3,025 | ||
Income tax expense | (527) | (1,141) | ||
Net income (loss) attributable to common stockholders | 3,371 | (3,578) | ||
Unconsolidated Joint Ventures [Member] | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Real estate, net | 2,387,526 | 2,246,152 | ||
Cash and cash equivalents and restricted cash | 224,149 | 216,910 | ||
Intangible assets, net | 85,553 | 58,590 | ||
For-sale residential condominium units | 346,054 | 359,638 | ||
Other assets | 66,040 | 46,646 | ||
Total assets | 3,109,322 | 2,927,936 | ||
Notes and mortgages payable, net | 1,870,635 | 1,791,404 | ||
Intangible liabilities, net | 16,358 | 18,397 | ||
Other liabilities | 61,459 | 61,097 | ||
Total liabilities | 1,948,452 | 1,870,898 | ||
Equity | 1,160,870 | 1,057,038 | ||
Total liabilities and equity | 3,109,322 | $ 2,927,936 | ||
Rental revenue | 57,520 | 56,528 | ||
Other income | 18,582 | 757 | ||
Total revenues | 76,102 | 57,285 | ||
Operating | 42,508 | 25,110 | ||
Depreciation and amortization | 26,898 | 27,453 | ||
Total expenses | 69,406 | 52,563 | ||
Interest and other loss | (42) | (33) | ||
Interest and debt expense | (17,598) | (13,740) | ||
Net loss before income taxes | (10,944) | (9,051) | ||
Income tax expense | (29) | (16) | ||
Net income (loss) attributable to common stockholders | $ (10,973) | $ (9,067) | ||
[1] | Represents the consolidated assets and liabilities of Paramount Group Operating Partnership LP, a Delaware limited partnership (the “Operating Partnership”). The Operating Partnership is a consolidated variable interest entity (“VIE”), of which we are the sole general partner and own approximately 90.8% as of March 31, 2022. As of March 31, 2022, the assets and liabilities of the Operating Partnership include $3,987,609 and $2,575,355 of assets and liabilities, respectively, of certain VIEs that are consolidated by the Operating Partnership. See Note 11, Variable Interest Entities (“VIEs”). |
Investments in Unconsolidated_7
Investments in Unconsolidated Real Estate Funds - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Investment Holdings [Line Items] | |||
Investments in unconsolidated real estate funds | $ 11,573,000 | $ 11,421,000 | |
Income (loss) from unconsolidated real estate funds | 170,000 | $ 180,000 | |
Fund X [Member] | |||
Investment Holdings [Line Items] | |||
Capital commitments | 192,000,000 | ||
Capital commitments invested | 81,925,000 | ||
Capital commitments reserved for future funding | $ 101,117,000 | ||
Alternative Investment Fund, Interest Rate | 7.80% | ||
Fund VIII [Member] | |||
Investment Holdings [Line Items] | |||
Alternative Investment Fund, Interest Rate | 1.30% |
Intangible Assets and Intangibl
Intangible Assets and Intangible Liabilities - Summary of Intangible Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Intangible assets: | |||
Gross amount | $ 338,930 | $ 371,555 | |
Accumulated amortization | (226,822) | (252,142) | |
Intangible assets, Net | 112,108 | 119,413 | |
Intangible liabilities: | |||
Gross amount | 138,726 | 151,118 | |
Accumulated amortization | (95,530) | (105,790) | |
Intangible Liabilities, Net | 43,196 | $ 45,328 | |
Leases, Acquired-in-Place, Market Adjustment [Member] | |||
Intangible liabilities: | |||
Amortization of above and below-market leases, net (component of "rental revenue") | 358 | $ 855 | |
Leases, Acquired-in-Place [Member] | |||
Intangible liabilities: | |||
Amortization of acquired in-place leases (component of "depreciation and amortization") | $ 5,531 | $ 7,219 |
Intangible Assets and Intangi_2
Intangible Assets and Intangible Liabilities - Schedule of Estimated Annual Amortization of Acquired Below-Market Leases, Net of Acquired Above-Market Leases and In Place Leases (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Finite Lived Intangible Assets [Line Items] | |
2022 | $ 985 |
2023 | 5,080 |
2024 | 6,020 |
2025 | 4,674 |
2026 | 2,801 |
2027 | 2,489 |
Leases, Acquired-in-Place [Member] | |
Finite Lived Intangible Assets [Line Items] | |
2022 | 16,113 |
2023 | 17,705 |
2024 | 14,248 |
2025 | 10,451 |
2026 | 7,896 |
2027 | $ 7,252 |
Debt - Summary of Outstanding D
Debt - Summary of Outstanding Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Notes and mortgages payable, Interest Rate | 3.42% | |
Notes and mortgages payable | $ 3,858,000 | $ 3,858,000 |
Credit Facility | 0 | 0 |
Less: unamortized deferred financing costs | (21,206) | (22,380) |
Total notes and mortgages payable, net | $ 3,836,794 | 3,835,620 |
Credit Facility With Variable Rate [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date of debt | 2026-03 | |
Credit Facility With Variable Rate [Member] | Secured Overnight Financing Rate (SOFR) [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Fixed/Variable Rate | 1.15% | |
1633 Broadway [Member] | Mortgages and Notes Payable with Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date of debt | 2029-12 | |
Notes and mortgages payable, Interest Rate | 2.99% | |
Notes and mortgages payable | $ 1,250,000 | 1,250,000 |
One Market Plaza [Member] | Mortgages and Notes Payable with Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date of debt | 2024-02 | |
Notes and mortgages payable, Interest Rate | 4.03% | |
Notes and mortgages payable | $ 975,000 | 975,000 |
1301 Avenue of the Americas [Member] | ||
Debt Instrument [Line Items] | ||
Notes and mortgages payable, Interest Rate | 3.04% | |
Notes and mortgages payable | $ 860,000 | 860,000 |
1301 Avenue of the Americas [Member] | Mortgages and Notes Payable with Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date of debt | 2026-08 | |
Notes and mortgages payable, Interest Rate | 2.46% | |
Notes and mortgages payable | $ 500,000 | 500,000 |
1301 Avenue of the Americas [Member] | Mortgages and Notes Payable with Variable Rate [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date of debt | 2026-08 | |
Notes and mortgages payable, Interest Rate | 3.85% | |
Notes and mortgages payable | $ 360,000 | 360,000 |
1301 Avenue of the Americas [Member] | Mortgages and Notes Payable with Variable Rate [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Fixed/Variable Rate | 3.56% | |
31 West 52nd Street [Member] | Mortgages and Notes Payable with Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date of debt | 2026-06 | |
Notes and mortgages payable, Interest Rate | 3.80% | |
Notes and mortgages payable | $ 500,000 | 500,000 |
300 Mission Street [Member] | Mortgages and Notes Payable with Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date of debt | 2023-10 | |
Notes and mortgages payable, Interest Rate | 3.65% | |
Notes and mortgages payable | $ 273,000 | $ 273,000 |
Debt - Summary of Outstanding_2
Debt - Summary of Outstanding Debt (Parenthetical) (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
1633 Broadway [Member] | ||
Debt Instrument [Line Items] | ||
Ownership percentage of Property | 90.00% | 90.00% |
One Market Plaza [Member] | ||
Debt Instrument [Line Items] | ||
Ownership percentage of Property | 49.00% | 49.00% |
300 Mission Street [Member] | ||
Debt Instrument [Line Items] | ||
Ownership percentage of Property | 31.10% | 31.10% |
1301 Avenue of the Americas [Member] | London Interbank Offered Rate (LIBOR) [Member] | Mortgages and Notes Payable with Variable Rate [Member] | ||
Debt Instrument [Line Items] | ||
Capped interest rate | 2.00% | 2.00% |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Jul. 29, 2021 | |
Derivative [Line Items] | ||
Changes in fair value of these interest rate swaps and interest rate caps | $ 18,173,000 | |
Designated As Hedging Instrument [Member] | | Cash Flow Hedging [Member] | ||
Derivative [Line Items] | ||
Changes in fair value of these interest rate swaps and interest rate caps | 18,545,000 | |
Amount to be recognized in accumulated other comprehensive income (loss) reclassified to interest expense for next twelve months | $ 7,347,000 | |
Designated As Hedging Instrument [Member] | | Interest Rate Swaps [Member] | Cash Flow Hedging [Member] | London Inter bank Offered Rate Libor Swap Rate [Member] | 1301 Avenue of the Americas [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 500,000,000 | |
LIBOR rate | 0.46% | |
Designated As Hedging Instrument [Member] | | Interest Rate Caps [Member] | Cash Flow Hedging [Member] | London Inter bank Offered Rate Libor Swap Rate [Member] | 1301 Avenue of the Americas [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 360,000,000 | |
Aggregate notional percentage | 2.00% |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Schedule of Interest Rate Swaps and Interest Rate Caps (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Interest Rate Swaps [Member] | ||
Derivative [Line Items] | ||
Total interest rate swap and interest rate caps assets designated as cash flow hedges (included in "other assets") | $ 22,760,000 | $ 6,691,000 |
Interest Rate Swaps [Member] | 1301 Avenue of the Americas [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 500,000,000 | |
Effective Date | Jul. 31, 2021 | |
Maturity Date | Aug. 31, 2024 | |
Strike Rate | 0.46% | |
Total interest rate swap and interest rate caps assets designated as cash flow hedges (included in "other assets") | $ 22,760,000 | 6,691,000 |
Interest Rate Caps [Member] | ||
Derivative [Line Items] | ||
Total interest rate swap and interest rate caps assets designated as cash flow hedges (included in "other assets") | 2,782,000 | 306,000 |
Interest Rate Caps [Member] | 1301 Avenue of the Americas [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 360,000,000 | |
Effective Date | Jul. 31, 2021 | |
Maturity Date | Aug. 31, 2023 | |
Strike Rate | 2.00% | |
Total interest rate swap and interest rate caps assets designated as cash flow hedges (included in "other assets") | $ 2,782,000 | $ 306,000 |
Equity - Additional Information
Equity - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2020 | Nov. 05, 2019 | |
Class Of Stock [Line Items] | |||
Common stock shares authorized amount | $ 200,000,000 | ||
Stock repurchased, price per share | $ 8.69 | ||
Stock repurchased, value | $ 120,000,000 | ||
Stock repurchase amount available for future repurchase | $ 80,000,000 | ||
Common Stock [Member] | |||
Class Of Stock [Line Items] | |||
Stock repurchased | 0 | 13,813,158 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Summary of Changes in Accumulated Other Comprehensive Income by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | ||
Changes in fair value of these interest rate swaps and interest rate caps | $ 18,173 | |
Amounts reclassified from accumulated other comprehensive income increasing interest and debt expense | 372 | |
Amount of income related to unconsolidated joint ventures recognized in other comprehensive income | 9,495 | $ 3,422 |
Amounts reclassified from accumulated other comprehensive income increasing loss from unconsolidated joint ventures | $ 958 | $ 962 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Summary of Changes in Accumulated Other Comprehensive Income by Component (Parenthetical) (Details) - Designated As Hedging Instrument [Member] | | Mar. 31, 2022USD ($) |
Interest Rate Swaps [Member] | Cash Flow Hedging [Member] | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Derivative liability, aggregate notional amount | $ 500,000,000 |
Interest Rate Caps [Member] | Cash Flow Hedging [Member] | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Derivative liability, aggregate notional amount | 360,000,000 |
Unconsolidated Joint Ventures [Member] | Interest Rate Swaps [Member] | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Derivative liability, aggregate notional amount | $ 402,000,000 |
Noncontrolling Interests - Addi
Noncontrolling Interests - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Noncontrolling Interest [Abstract] | ||
Consolidated joint ventures | $ 417,577 | $ 428,833 |
Noncontrolling interests in consolidated real estate fund aggregated | 80,909 | 81,925 |
Operating partnerships | 366,536 | 356,111 |
Redemption value | $ 243,569 | $ 181,315 |
Common units conversion basis | one-for-one |
Variable Interest Entities ("_3
Variable Interest Entities ("VIEs") - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2022 | |
Variable Interest Entities [Member] | Paramount Group Operating Partnership [Member] | |
Variable Interest Entity [Line Items] | |
Percentage of ownership in operating partnership | 90.80% |
Variable Interest Entities ("_4
Variable Interest Entities ("VIEs") - Summary of Assets and Liabilities of Consolidated Variable Interest Entities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Variable Interest Entity [Line Items] | |||||
Real estate, net | $ 6,894,262 | $ 6,915,084 | |||
Cash and cash equivalents and restricted cash | 468,326 | 529,666 | $ 488,240 | $ 465,324 | |
Deferred rent receivable | 330,944 | 332,735 | |||
Deferred charges, net | 120,557 | 122,177 | |||
Intangible assets, net | 112,108 | 119,413 | |||
Other assets | 76,599 | 40,388 | |||
Total assets | [1] | 8,498,582 | 8,494,562 | ||
Notes and mortgages payable, net | 3,836,794 | 3,835,620 | |||
Accounts payable and accrued expenses | 111,171 | 116,192 | |||
Intangible liabilities, net | 43,196 | 45,328 | |||
Other liabilities | 25,621 | 25,495 | |||
Total liabilities | [1] | 4,035,559 | 4,039,530 | ||
Variable Interest Entities [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Real estate, net | 3,398,283 | 3,415,735 | |||
Cash and cash equivalents and restricted cash | 176,487 | 198,154 | |||
Investments in unconsolidated joint ventures | 75,159 | 76,428 | |||
Accounts and other receivables | 5,199 | 6,801 | |||
Deferred rent receivable | 195,640 | 197,794 | |||
Deferred charges, net | 52,101 | 53,013 | |||
Intangible assets, net | 59,418 | 62,380 | |||
Other assets | 25,322 | 15,551 | |||
Total assets | 3,987,609 | 4,025,856 | |||
Notes and mortgages payable, net | 2,488,379 | 2,487,871 | |||
Accounts payable and accrued expenses | 54,127 | 54,738 | |||
Intangible liabilities, net | 26,395 | 27,674 | |||
Other liabilities | 6,454 | 6,427 | |||
Total liabilities | $ 2,575,355 | $ 2,576,710 | |||
[1] | Represents the consolidated assets and liabilities of Paramount Group Operating Partnership LP, a Delaware limited partnership (the “Operating Partnership”). The Operating Partnership is a consolidated variable interest entity (“VIE”), of which we are the sole general partner and own approximately 90.8% as of March 31, 2022. As of March 31, 2022, the assets and liabilities of the Operating Partnership include $3,987,609 and $2,575,355 of assets and liabilities, respectively, of certain VIEs that are consolidated by the Operating Partnership. See Note 11, Variable Interest Entities (“VIEs”). |
Variable Interest Entities ("_5
Variable Interest Entities ("VIEs") - Summary of Investments in Unconsolidated Real Estate Funds and Maximum Risk of Loss from Investments (Details) - Unconsolidated Real Estate Funds [Member] - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | |
Carrying Value of Investments [Member] | |||
Variable Interest Entity [Line Items] | |||
Investments in unconsolidated real estate funds | $ 11,573 | $ 11,421 | |
Asset Management Fees and Other Receivables [Member] | |||
Variable Interest Entity [Line Items] | |||
Investments in unconsolidated real estate funds | 49,330 | [1] | 9 |
Maximum Risk of Loss [Member] | |||
Variable Interest Entity [Line Items] | |||
Investments in unconsolidated real estate funds | $ 60,903 | $ 11,430 | |
[1] | Includes $49,316 note receivable from Fund X. See Note 19, Related Parties . |
Variable Interest Entities ("_6
Variable Interest Entities ("VIEs") - Summary of Investments in Unconsolidated Real Estate Funds and Maximum Risk of Loss from Investments (Parenthetical) (Details) | Mar. 31, 2022USD ($) |
Variable Interest Entity [Line Items] | |
Receivable from affiliate | $ 49,316,000 |
Fund X [Member] | |
Variable Interest Entity [Line Items] | |
Receivable from affiliate | $ 49,316,000 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value of Financial Assets Measured at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets | $ 25,542 | $ 6,997 |
Interest Rate Swaps [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Interest rate swap assets (included in "other assets") | 22,760 | 6,691 |
Interest Rate Caps [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Interest rate swap assets (included in "other assets") | 2,782 | 306 |
Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets | 25,542 | 6,997 |
Level 2 [Member] | Interest Rate Swaps [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Interest rate swap assets (included in "other assets") | 22,760 | 6,691 |
Level 2 [Member] | Interest Rate Caps [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Interest rate swap assets (included in "other assets") | $ 2,782 | $ 306 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Carrying Amounts and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Carrying Amount [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Notes and mortgages payable | $ 3,858,000 | $ 3,858,000 |
Total liabilities | 3,858,000 | 3,858,000 |
Fair Value [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Notes and mortgages payable | 3,776,544 | 3,893,252 |
Total liabilities | $ 3,776,544 | $ 3,893,252 |
Leases - Additional Information
Leases - Additional Information (Details) | Mar. 31, 2022 |
Minimum [Member] | |
Lessor Lease Description [Line Items] | |
Lease term | 5 years |
Maximum [Member] | |
Lessor Lease Description [Line Items] | |
Lease term | 15 years |
Leases - Schedule of Rental Rev
Leases - Schedule of Rental Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation Of Revenue [Abstract] | ||
Fixed rental revenues | $ 154,777 | $ 160,629 |
Variable rental revenues | 15,145 | 12,517 |
Total rental revenue | $ 169,922 | $ 173,146 |
Leases - Schedule of Future Und
Leases - Schedule of Future Undiscounted Cash Flows Under Non-Cancellable Operating Leases (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Leases [Abstract] | |
2022 | $ 477,510 |
2023 | 628,122 |
2024 | 621,054 |
2025 | 566,419 |
2026 | 470,246 |
2027 | 402,583 |
Thereafter | 1,957,941 |
Total | $ 5,123,875 |
Fee and Other Income - Summary
Fee and Other Income - Summary of Fee and Other Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Fee income: | ||
Total fee income | $ 11,988 | $ 6,670 |
Other income | 1,775 | 1,350 |
Total fee and other income | 13,763 | 8,020 |
Asset Management Fees [Member] | ||
Fee income: | ||
Total fee income | 2,885 | 3,486 |
Property Management Fees [Member] | ||
Fee income: | ||
Total fee income | 2,219 | 2,196 |
Acquisition Disposition Leasing And Other [Member] | ||
Fee income: | ||
Total fee income | $ 6,884 | $ 988 |
Interest and Other Income, ne_2
Interest and Other Income, net - Schedule of Interest and Other Income, net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Interest And Other Income [Abstract] | ||
Interest income, net | $ 231 | $ 390 |
Mark-to-market of investments in our deferred compensation plans | 912 | |
Total interest and other income, net | $ 231 | $ 1,302 |
Interest and Debt Expense - Det
Interest and Debt Expense - Details of Interest and Debt Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Interest And Debt Expense [Abstract] | ||
Interest expense | $ 32,739 | $ 32,420 |
Amortization of deferred financing costs | 1,538 | 2,319 |
Total interest and debt expense | $ 34,277 | $ 34,739 |
Incentive Compensation - Additi
Incentive Compensation - Additional Information (Details) - USD ($) | Jan. 13, 2022 | Mar. 31, 2022 | Mar. 31, 2021 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 6,562,000 | $ 5,486,000 | |
Restricted Stock [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Fair value of awards granted | $ 1,119,000 | ||
Shares available for grant | 120,243 | ||
2022 Performance Program [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Performance measurement period, term | 3 years | ||
Performance measurement period, start date | Jan. 1, 2022 | ||
Performance measurement period, end date | Dec. 31, 2024 | ||
Percentage of payout exceeding units granted | 100.00% | ||
Reduction in percentage on number of LTIP units earned if negative TSR | 30.00% | ||
Fair value of awards granted | $ 7,188,000 | ||
Vesting period | 4 years | ||
2022 Performance Program [Member] | Share-Based Compensation Award Tranche One [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Percentage of the awards that vest | 50.00% | ||
2022 Performance Program [Member] | Share-Based Compensation Award Tranche Two [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Percentage of the awards that vest | 50.00% | ||
Long Term Incentive Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Fair value of awards granted | $ 5,313,000 | ||
Shares available for grant | 626,942 | ||
Long Term Incentive Plan [Member] | Minimum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Long Term Incentive Plan [Member] | Maximum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Appreciation Only Long Term Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Fair value of awards granted | $ 5,831,000 | ||
Shares available for grant | 2,703,499 | ||
2019 Performance Program [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Fair value granted | 8,106,000 | ||
Unrecognized compensation cost | $ 713,000 | ||
Unrecognized compensation cost expected to be recognized over a weighted-average period | 9 months 18 days |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Computation of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Numerator: | ||
Net income (loss) attributable to common stockholders | $ 3,371 | $ (3,578) |
Earnings allocated to unvested participating securities | (21) | (19) |
Numerator for income (loss) per common share - basic and diluted | $ 3,350 | $ (3,597) |
Denominator: | ||
Denominator for basic loss per common share - weighted average shares | 218,782,296 | 218,666,005 |
Effect of dilutive stock-based compensation plans | 58,000 | |
Denominator for diluted loss per common share - weighted average shares | 218,840,094 | 218,666,005 |
Income (loss) per common share - basic and diluted | $ 0.02 | $ (0.02) |
Earnings Per Share - Summary _2
Earnings Per Share - Summary of Computation of Earnings Per Share (Parenthetical) (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Effect of dilutive securities excluded from computation of earning per share | 28,713 | 23,609 |
Related Parties - Additional In
Related Parties - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Fee and other income | $ 13,763,000 | $ 8,020,000 | |
Accounts and other receivables | 11,678,000 | $ 15,582,000 | |
Property management, asset management, leasing and other related services fee income | 11,988,000 | 6,670,000 | |
Accounts payable and accrued expenses | 111,171,000 | 116,192,000 | |
Due from affiliates | $ 49,316,000 | ||
712 Fifth Avenue [Member] | |||
Related Party Transaction [Line Items] | |||
Equity method paramount ownership percentage | 50.00% | ||
CNBB-RDF Holdings Otto Family [Member] | Management Agreements [Member] | |||
Related Party Transaction [Line Items] | |||
Fee and other income | $ 489,000 | 517,000 | |
Accounts and other receivables | 752,000 | 484,000 | |
Unconsolidated Joint Ventures and Real Estate Funds [Member] | Management Agreements [Member] | |||
Related Party Transaction [Line Items] | |||
Accounts and other receivables | 2,868,000 | 2,883,000 | |
Property management, asset management, leasing and other related services fee income | $ 10,783,000 | 5,586,000 | |
Hamburg Trust Consulting GMBH ("HTC") [Member] | |||
Related Party Transaction [Line Items] | |||
Mark-up cost percentage | 10.00% | ||
Transaction related costs | $ 389,000 | 122,000 | |
Accounts payable and accrued expenses | $ 389,000 | $ 523,000 | |
Hamburg Trust Consulting GMBH ("HTC") [Member] | Chairman, Chief Executive Officer and President [Member] | |||
Related Party Transaction [Line Items] | |||
Percentage of ownership | 100.00% | ||
Mannheim Trust [Member] | Board of Director [Member] | 712 Fifth Avenue [Member] | |||
Related Party Transaction [Line Items] | |||
Equity method paramount ownership percentage | 50.00% | ||
Lease rental income | $ 91,000 | $ 91,000 | |
Fund X [Member] | |||
Related Party Transaction [Line Items] | |||
Due from affiliates | $ 49,316,000 | ||
Fund X [Member] | Secured Overnight Financing Rate (SOFR) [Member] | |||
Related Party Transaction [Line Items] | |||
Fixed/Variable Rate | 2.20% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - New York State Division Of Taxation And Finance [Member] | Feb. 16, 2018USD ($) |
Minimum [Member] | |
Other Commitments [Line Items] | |
Loss Contingency, Estimate of Possible Loss | $ 0 |
Maximum [Member] | |
Other Commitments [Line Items] | |
Loss Contingency, Estimate of Possible Loss | $ 53,300,000 |
Segments - Additional Informati
Segments - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2022Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segments - Schedule of NOI for
Segments - Schedule of NOI for Each Reportable Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Segment Reporting Information [Line Items] | |||
Property-related revenues | $ 171,697 | $ 174,496 | |
Property-related operating expenses | (66,661) | (66,618) | |
NOI from unconsolidated joint ventures (excluding One Steuart Lane) | 11,234 | 10,326 | |
NOI | [1] | 116,270 | 118,204 |
New York [Member] | |||
Segment Reporting Information [Line Items] | |||
Property-related revenues | 115,405 | 111,837 | |
Property-related operating expenses | (48,211) | (49,024) | |
NOI from unconsolidated joint ventures (excluding One Steuart Lane) | 2,818 | 2,821 | |
NOI | [1] | 70,012 | 65,634 |
San Francisco [Member] | |||
Segment Reporting Information [Line Items] | |||
Property-related revenues | 57,089 | 63,472 | |
Property-related operating expenses | (17,292) | (16,938) | |
NOI from unconsolidated joint ventures (excluding One Steuart Lane) | 8,354 | 7,537 | |
NOI | [1] | 48,151 | 54,071 |
Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Property-related revenues | (797) | (813) | |
Property-related operating expenses | (1,158) | (656) | |
NOI from unconsolidated joint ventures (excluding One Steuart Lane) | 62 | (32) | |
NOI | [1] | $ (1,893) | $ (1,501) |
[1] | 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 use NOI internally as a performance measure and believe it provides useful information to investors regarding our financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level. Other real estate companies may use different methodologies for calculating NOI and, accordingly, our presentation of NOI may not be comparable to other real estate companies. |
Segments - Schedule of Reconcil
Segments - Schedule of Reconciliation of NOI to Net Income (Loss) Attributable to Common Stockholders (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Segment Reporting [Abstract] | |||
NOI | [1] | $ 116,270 | $ 118,204 |
Fee income | 11,988 | 6,670 | |
Depreciation and amortization expense | (55,624) | (58,305) | |
General and administrative expenses | (15,645) | (14,364) | |
NOI from unconsolidated joint ventures (excluding One Steuart Lane) | (11,234) | (10,326) | |
Loss from unconsolidated joint ventures | (5,113) | (5,316) | |
Interest and other income, net | 231 | 1,302 | |
Interest and debt expense | (34,277) | (34,739) | |
Other, net | 53 | (101) | |
Net income before income taxes | 6,649 | 3,025 | |
Income tax expense | (527) | (1,141) | |
Net income | 6,122 | 1,884 | |
Consolidated joint ventures | (3,425) | (5,728) | |
Consolidated real estate fund | 1,016 | (85) | |
Operating Partnership | (342) | 351 | |
Net income (loss) attributable to common stockholders | $ 3,371 | $ (3,578) | |
[1] | 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 use NOI internally as a performance measure and believe it provides useful information to investors regarding our financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level. Other real estate companies may use different methodologies for calculating NOI and, accordingly, our presentation of NOI may not be comparable to other real estate companies. |
Segments - Schedule of Total As
Segments - Schedule of Total Assets for Each Reportable Segments Information (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Total assets | [1] | $ 8,498,582 | $ 8,494,562 |
New York [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 5,364,204 | 5,336,210 | |
San Francisco [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 2,689,173 | 2,696,131 | |
Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | $ 445,205 | $ 462,221 | |
[1] | Represents the consolidated assets and liabilities of Paramount Group Operating Partnership LP, a Delaware limited partnership (the “Operating Partnership”). The Operating Partnership is a consolidated variable interest entity (“VIE”), of which we are the sole general partner and own approximately 90.8% as of March 31, 2022. As of March 31, 2022, the assets and liabilities of the Operating Partnership include $3,987,609 and $2,575,355 of assets and liabilities, respectively, of certain VIEs that are consolidated by the Operating Partnership. See Note 11, Variable Interest Entities (“VIEs”). |