8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): May 7, 2015

Paramount Group, Inc.

(Exact Name of Registrant as Specified in Charter)

Maryland	001-36746	32-0439307
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

1633 Broadway, Suite 1801 New York, New York	10019
(Address of Principal Executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (212) 237-3100

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2.):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On May 7, 2015, Paramount Group, Inc. (the “Company”) issued a press release announcing it financial results for the first quarter ended March 31, 2015. A copy of that press release as well as the supplemental information referred to in the press release is available on the Company’s website and are attached hereto as Exhibits 99.1 and 99.2 and incorporated herein by reference. This Item 2.02 and the attached exhibits 99.1 and 99.2 are being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Exchange Act.

The Company will host a webcast and conference call at 10:00 a.m. Eastern Standard Time on May 8, 2015, to discuss first quarter 2015 results. The number to call is 1-877-407-0789 (domestic) and 1-201-689-8562 (international). A live webcast will be available in the Investors section of the Company’s website. A replay of the conference call will be available through May 22, 2015, by dialing 1-877-870-5176 (domestic) and 1-858-384-5517 (international) and entering the passcode 13607183.

In the press release referred to above, the Company discloses that the non-GAAP financial measure of Core Funds From Operations (“Core FFO”) attributable to Paramount Group, Inc. was $39.0 million, or $0.18 per diluted share, for the quarter ended March 31, 2015. Net loss attributable to Paramount Group, Inc., which is the most directly comparable GAAP financial measure, was $9.7 million, or $0.05 per diluted share, for the quarter ended March 31, 2015.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits:

Exhibit Number	Description
99.1	Press release dated May 7, 2015 and entitled “PARAMOUNT GROUP, INC. ANNOUNCES FIRST QUARTER 2015 RESULTS”
99.2	Supplemental information entitled “PARAMOUNT GROUP, INC. SUPPLEMENTAL OPERATING AND FINANCIAL DATA FOR THE QUARTER ENDED MARCH 31, 2015”

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

PARAMOUNT GROUP, INC.
By:	/s/ Gage Johnson
Name:	Gage Johnson
Title:	Senior Vice President, General Counsel and Secretary

Date: May 7, 2015

EX-99.1

Exhibit 99.1

Paramount Group, Inc. Announces First Quarter 2015 Results

– Reports Core FFO of $0.18 per Diluted Share –

NEW YORK - May 7, 2015 – Paramount Group, Inc. (NYSE: PGRE) (the “Company”), today reported results for the quarter ended March 31, 2015.

First Quarter Highlights:

• Reported Core Funds from Operations (“Core FFO”) attributable to Paramount Group, Inc. of $39.0 million, or $0.18 per diluted share, for the quarter ended March 31, 2015.

• Leased 155,828 square feet at a weighted average initial rent of $75.70 per square foot.

• Manhattan leased percentage increased to 95.5% at March 31, 2015, up 110 basis points from December 31, 2014. Portfolio leased percentage increased to 94.6% at March 31, 2015, up 70 basis points from December 31, 2014.

• On March 27, 2015 the Company paid a cash dividend of $0.039 per share for the 38-day period following the completion of the Company’s initial public offering and ending on December 31, 2014.

• On March 30, 2015 the Company paid a regular quarterly cash dividend of $0.095 per share for the first quarter ended March 31, 2015.

Financial Results for the First Quarter Ended March 31, 2015

Core FFO attributable to Paramount Group, Inc. was $39.0 million, or $0.18 per diluted share, for the quarter ended March 31, 2015. Core FFO excludes the impact of (i) unrealized gains on interest rate swaps, including the Company’s pro rata share of such gains of a partially owned entity, (ii) acquisition and transaction related costs and (iii) severance costs. The aggregate of these items, net of amounts attributable to non-controlling interests, was $4.4 million, or $0.02 per diluted share. FFO attributable to Paramount Group, Inc. which includes the impact of these items, was $43.3 million, or $0.20 per diluted share, for the quarter ended March 31, 2015.

Net loss attributable to Paramount Group, Inc. was $9.7 million, or $0.05 per diluted share, for the quarter ended March 31, 2015.

1

Portfolio Operations

As of March 31, 2015, our portfolio consisted of 12 Class A office properties aggregating approximately 10.4 million square feet that was 94.6% leased.

During the first quarter we leased 155,828 square feet at a weighted average initial rent of $75.70 per square foot. This leasing activity, offset by lease expirations during the quarter, increased portfolio wide occupancy by 70 basis points from December 31, 2014. Of these leases, 23,730 square feet represent second generation space (space that has been vacant for less than twelve months) for which we achieved positive mark-to-market of 17.3% on a cash basis and 13.6% on a GAAP basis. The average lease term for leases signed during the first quarter was 14.3 years and tenant improvements and leasing commissions on these leases were $7.83 per square foot per annum, or 10.3% of initial rent.

Investor Conference Call and Webcast

The Company will host a webcast and conference call at 10:00 a.m. Eastern Standard Time on May 8, 2015, to discuss first quarter 2015 results. The number to call is 1-877-407-0789 (domestic) and 1-201-689-8562 (international). A live webcast will be available in the Investors section of the Company’s website. A replay of the conference call will be available through May 22, 2015, by dialing 1-877-870-5176 (domestic) and 1-858-384-5517 (international) and entering the passcode 13607183.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Federal securities laws. You can identify these statements by our use of the words “assumes,” “believes,” “estimates,” “expects,” “guidance,” “intends,” “plans,” “projects” and similar expressions that do not relate to historical matters. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the Company’s control and could materially affect actual results, performance or achievements. These factors include, without limitation, the ability to enter into new leases or renew leases on favorable terms, dependence on tenants’ financial condition, the uncertainties of real estate development, acquisition and disposition activity, the ability to effectively integrate acquisitions, the costs and availability of financing, the ability of our joint venture partners to satisfy their obligations, the effects of local, national and international economic and market conditions, the effects of acquisitions, dispositions and possible impairment charges on our operating results, regulatory changes and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission. The Company does not undertake a duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

2

Non GAAP Financial Measures

FFO is a supplemental measure of our performance. We present FFO in accordance with the definition adopted by National Association of Real Estate Investment Trusts, (“NAREIT”). NAREIT defines FFO as GAAP net income or loss adjusted to exclude net gain from sales of depreciated real estate assets, impairment losses on depreciable real estate and depreciation and amortization expense from real estate assets, including the pro rata share of such adjustments of unconsolidated joint ventures. FFO is commonly used in the real estate industry to assist investors and analysts in comparing results of real estate companies because it excludes the effect of real estate depreciation and amortization and net gains on sales, which are based on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions. In addition, we present Core FFO as an alternative measure of our operating performance, which adjusts FFO for certain other items, including acquisition and transaction related costs and unrealized gains or losses on interest rate swaps, which we believe enhances the comparability of our FFO across periods.

FFO and Core FFO are presented as supplemental financial measures and do not fully represent our operating performance. Other REITs may use different methodologies for calculating FFO and Core FFO or use other definitions of FFO and Core FFO and, accordingly, our presentation of these measures may not be comparable to other real estate companies. Neither FFO nor Core FFO is intended to be a measure of cash flow or liquidity. Please refer to our financial statements, prepared in accordance with GAAP, for purposes of evaluating our financial condition, results of operations and cash flows.

A reconciliation of each Non-GAAP financial measure to the most directly comparable GAAP financial measure can be found in this press release and in our Supplemental Package.

About Paramount Group, Inc.

Headquartered in New York City, Paramount Group, Inc. is a fully-integrated real estate investment trust that owns, operates, manages, acquires and redevelops high-quality, Class A office properties located in select central business district submarkets of New York City, Washington, D.C. and San Francisco. Paramount is focused on maximizing the value of its portfolio by leveraging the sought-after locations of its assets and its proven property management capabilities to attract and retain high-quality tenants.

3

Paramount Group, Inc.

Consolidated Balance Sheets

(Unaudited and in thousands)

	March 31, 2015			December 31, 2014
ASSETS:
Rental Property
Land	$	2,042,071		$	2,042,071
Buildings and improvements		5,503,475			5,488,168
		7,545,546			7,530,239
Accumulated depreciation and amortization		(121,165	)		(81,050	)
Rental Property, net		7,424,381			7,449,189
Real estate fund investments		324,282			323,387
Investments in partially owned entities		6,370			5,749
Cash and cash equivalents		380,889			438,599
Restricted cash		53,864			55,728
Marketable securities		21,386			20,159
Deferred rent receivable		24,261			8,267
Accounts and other receivables, net		12,863			7,692
Deferred charges, net		43,713			39,165
Intangible assets, net		629,021			669,385
Other assets		31,948			13,121
Total Assets	$	8,952,978		$	9,030,441
LIABILITIES:
Mortgages and notes payable	$	2,852,754		$	2,852,287
Credit facility		—			—
Due to affiliates		27,299			27,299
Loans payable to noncontrolling interests		43,188			42,195
Accounts payable and accrued expenses		78,282			93,472
Deferred income taxes		3,183			2,861
Interest rate swap liabilities		182,218			194,196
Intangible liabilities, net		210,964			219,228
Other liabilities		45,742			43,950
Total Liabilities		3,443,630			3,475,488
EQUITY:
Paramount Group, Inc. stockholders’ equity		3,829,373			3,910,862
Noncontrolling interests in consolidated joint ventures and funds		685,176			685,888
Noncontrolling interests in Operating Partnership		994,799			958,203
Total Equity		5,509,348			5,554,953
TOTAL LIABILITIES AND EQUITY	$	8,952,978		$	9,030,441

4

Paramount Group, Inc.

Consolidated Statement of Income

(Unaudited and in thousands, except share and per share data)

	Quarter Ended March 31, 2015
REVENUES:
Property rentals	$	126,402
Straight-line rent adjustments		15,951
Amortization of below-market leases, net		890
Rental income		143,243
Tenant reimbursement income		13,488
Fee income		1,535
Other income		2,960
Total revenues		161,226
EXPENSES:
Operating		61,884
Depreciation and amortization		73,583
General and administrative		12,613
Total expenses		148,080
Operating income		13,146
Income from real estate fund investments		5,221
Income from partially owned entities		975
Unrealized gains on interest rate swaps		11,978
Interest and other income, net		854
Interest and debt expense		(41,888	)
Acquisition and transaction related costs		(1,139	)
Net loss before income taxes		(10,853	)
Income tax expense		(574	)
Net loss		(11,427	)
Less net (income) loss attributable to noncontrolling interests in:
Consolidated joint ventures and funds		(668	)
Operating Partnership		2,364
Net loss attributable to Paramount Group, Inc.	$	(9,731	)
Weighted average common shares outstanding
Basic		212,106,718
Diluted		212,106,718
Net loss per share attributable to Paramount Group, Inc.
Basic	$	(0.05	)
Diluted	$	(0.05	)

5

Paramount Group, Inc.

Reconciliation of Net Income to Funds from Operations

And Core Funds from Operations

(Unaudited and in thousands, except share and per share data)

	Quarter Ended
	March 31, 2015
Reconciliation of net loss to FFO:
Net loss	$	(11,427	)
Real estate depreciation and amortization		73,583
Pro rata share of real estate depreciation and amortization of partially owned entities		1,476
FFO		63,632
Less FFO attributable to noncontrolling interests in:
Consolidated joint ventures and funds		(9,789	)
Operating Partnership		(10,526	)
FFO attributable to Paramount Group, Inc.	$	43,317
Per diluted share	$	0.20
Reconciliation of FFO to Core FFO:
FFO	$	63,632
Non-core (income) expense:
Acquisition, transaction and formation related costs		1,139
Severance costs		3,315
Unrealized gains on interest rate swaps		(11,978	)
Pro rata share of unrealized gains on interest rate swaps of partially owned entities		(386	)
Core FFO		55,722
Less Core FFO attributable to noncontrolling interests in:
Consolidated joint ventures and funds		(7,291	)
Operating Partnership		(9,468	)
Core FFO attributable to Paramount Group, Inc.	$	38,963
Per diluted share	$	0.18
Reconciliation of weighted average shares outstanding:
Weighted average shares outstanding		212,106,718
Effect of dilutive securities		11,928
Denominator for FFO per diluted share		212,118,646

6

Contact Information:

Investor Relations:

212-492-2298

IR@paramount-group.com

OR

Media:

212-492-2285

PR@paramount-group.com

7

EX-99.2

Exhibit 99.2

SUPPLEMENTAL OPERATING AND FINANCIAL DATA

FOR THE QUARTER ENDED MARCH 31, 2015

SAFE HARBOR

This supplemental package contains forward-looking statements within the meaning of the Federal securities laws. You can identify these statements by our use of the words “assumes,” “believes,” “estimates,” “expects,” “guidance,” “intends,” “plans,” “projects” and similar expressions that do not relate to historical matters. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and could materially affect actual results, performance or achievements. These factors include, without limitation, the ability to enter into new leases or renew leases on favorable terms, dependence on tenants’ financial condition, the uncertainties of real estate development, acquisition and disposition activity, the ability to effectively integrate acquisitions, the costs and availability of financing, the ability of our joint venture partners to satisfy their obligations, the effects of local, national and international economic and market conditions, the effects of acquisitions, dispositions and possible impairment charges on our operating results, regulatory changes and other risks and uncertainties detailed from time to time in our filings with the Securities and Exchange Commission. We do not undertake a duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

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TABLE OF CONTENTS

	Page
Company Profile	4
Research Coverage	5
Selected Financial Information
Financial Highlights	6
Consolidated Balance Sheets	7
Consolidated Statement of Income	8
Funds From Operations (“FFO”)	9
Funds Available for Distribution (“FAD”)	10
Net Operating Income (“NOI”)	11
Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”)	12
Consolidated Joint Ventures	13 - 14
Capital Structure	15
Debt Analysis	16
Debt Maturities	17
Selected Property Data
Portfolio Summary	18
Funds Summary	19
Top Tenants and Industry Diversification	20
Leasing Activity	21
Lease Expirations	22
Capital Expenditures - Cash Basis	23
Definitions	24

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COMPANY PROFILE

Paramount Group, Inc., (“Paramount”) is a fully-integrated real estate investment trust that owns, operates, manages, acquires and redevelops high-quality, Class A office properties located in select central business district submarkets of New York City, Washington, D.C. and San Francisco. Paramount is focused on maximizing the value of its portfolio by leveraging the sought-after locations of its assets and its proven property management capabilities to attract and retain high-quality tenants.

EXECUTIVE MANAGEMENT

Albert Behler	Chairman, Chief Executive Officer and President
Michael Walsh	Executive Vice President, Chief Financial Officer and Treasurer
Jolanta Bott	Executive Vice President, Operations and Human Resources
Theodore Koltis	Executive Vice President, Leasing
Daniel Lauer	Executive Vice President, Chief Investment Officer
Ralph DiRuggiero	Senior Vice President, Property Management
Gage Johnson	Senior Vice President, General Counsel and Secretary
Vito Messina	Senior Vice President, Asset Management
Wilbur Paes	Senior Vice President, Chief Accounting Officer
BOARD OF DIRECTORS
Albert Behler	Director, Chairman of the Board
Thomas Armbrust	Director
Dan Emmett	Director, Chair of Audit Committee
Lizanne Galbreath	Director, Chair of Compensation Committee
Peter Linneman	Director, Chair of Nominating and Corporate Governance Committee; Lead Independent Director
David O’Connor	Director
Katharina Otto-Bernstein	Director

COMPANY INFORMATION

Corporate Headquarters	Investor Relations	Stock Exchange Listing	Trading Symbol
1633 Broadway, Suite 1801	IR@paramount-group.com	New York Stock Exchange	PGRE
New York, NY 10019	(212) 492-2298
(212) 237-3100

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RESEARCH COVERAGE ⁽¹⁾

James Feldman	Vin Chao	Steve Sakwa	Brad Burke
Bank of America Merrill Lynch	Deutsche Bank	Evercore ISI	Goldman Sachs
(646) 855-5808	(212) 250-6799	(212) 446-9462	(917) 343-2082
Jed Reagan	Vance Edelson	Ross Nussbaum	Brendan Maiorana
Green Street Advisors	Morgan Stanley	UBS	Wells Fargo
(949) 640-8780	(212) 761-0078	(212) 713-2484	(443) 263-6516

⁽¹⁾  With the exception of Green Street Advisors, an independent research firm, the equity analysts listed above are those analysts that, according to First Call Corporation, have published research material on the Company and are listed as covering the Company. Please note that any opinions, estimates or forecasts regarding the Company’s performance made by such analysts do not represent the opinions, estimates or forecasts of the Company or its management. The Company does not by its reference above, imply its endorsement of or concurrence with any information, conclusions or recommendations made by any of such analysts.

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	FINANCIAL HIGHLIGHTS
(unaudited and in thousands, except square feet and per share data)

	Quarter Ended
	March 31, 2015
SELECTED ITEMS
Total revenues	$	161,226
Pro rata share of NOI (1)	$	87,969
Pro rata share of Cash NOI (1)	$	75,341
Net loss attributable to Paramount Group, Inc.	$	(9,731	)
Per share - basic	$	(0.05	)
Per share - diluted	$	(0.05	)
FFO attributable to Paramount Group, Inc. (1)	$	43,317
Per share - diluted	$	0.20
FFO payout ratio (1)		46.5	%
Core FFO attributable to Paramount Group, Inc.	$	38,963
Per share - diluted	$	0.18
Core FFO payout ratio (1)		51.7	%
FAD attributable to Paramount Group, Inc.	$	17,183
FAD payout ratio (1)		117.3	%

COMMON SHARE DATA

	Quarter Ended
	March 31, 2015
Share Price
High	$	20.21
Low	$	17.66
Closing (end of period)	$	19.30
Dividends per common share	$	0.095	(2)
Annualized Dividends per common share	$	0.380

PORTFOLIO STATISTICS

	Number of		Square		% Occupied (1)			% Leased (1)
	Properties		Feet		at March 31, 2015			at March 31, 2015
Region:
New York		6		7,152,207		93.3	%		95.5	%
Washington, D.C.		5		1,602,655		83.3	%		88.5	%
San Francisco		1		1,611,125		90.1	%		96.7	%
		12		10,365,987		91.3	%		94.6	%

⁽¹⁾  See page 24 for our definition of this measure.

⁽²⁾  Excludes the $0.039 cash dividend for the 38 day period following the completion of our initial public offering and related formation transactions and ending on December 31, 2014.

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	CONSOLIDATED BALANCE SHEETS
(unaudited and in thousands)

	March 31, 2015			December 31, 2014
ASSETS:
Rental Property
Land	$	2,042,071		$	2,042,071
Buildings and improvements		5,503,475			5,488,168
		7,545,546			7,530,239
Accumulated depreciation and amortization		(121,165	)		(81,050	)
Rental Property, net		7,424,381			7,449,189
Real estate fund investments		324,282			323,387
Investments in partially owned entities		6,370			5,749
Cash and cash equivalents		380,889			438,599
Restricted cash		53,864			55,728
Marketable securities		21,386			20,159
Deferred rent receivable		24,261			8,267
Accounts and other receivables, net		12,863			7,692
Deferred charges, net		43,713			39,165
Intangible assets, net		629,021			669,385
Other assets		31,948			13,121
Total Assets	$	8,952,978		$	9,030,441
LIABILITIES:
Mortgages and notes payable	$	2,852,754		$	2,852,287
Credit facility		—			—
Due to affiliates (1)		27,299			27,299
Loans payable to noncontrolling interests		43,188			42,195
Accounts payable and accrued expenses		78,282			93,472
Deferred income taxes		3,183			2,861
Interest rate swap liabilities		182,218			194,196
Intangible liabilities, net		210,964			219,228
Other liabilities		45,742			43,950
Total Liabilities		3,443,630			3,475,488
EQUITY:
Paramount Group, Inc. stockholders’ equity		3,829,373			3,910,862
Noncontrolling interests in consolidated joint ventures and funds		685,176			685,888
Noncontrolling interests in Operating Partnership		994,799			958,203
Total Equity		5,509,348			5,554,953
TOTAL LIABILITIES AND EQUITY	$	8,952,978		$	9,030,441

⁽¹⁾  Represents notes payable to affiliates, which are due in October 2017 and bear interest at a fixed rate of 0.50%.

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	CONSOLIDATED STATEMENT OF INCOME
(unaudited and in thousands, except share and per share data)

	Quarter Ended
	March 31, 2015
REVENUES:
Property rentals	$	126,402
Straight-line rent adjustments		15,951
Amortization of below-market leases, net		890
Rental income		143,243
Tenant reimbursement income		13,488
Fee income		1,535
Other income		2,960
Total revenues		161,226
EXPENSES:
Operating		61,884
Depreciation and amortization		73,583
General and administrative		12,613	(1)
Total expenses		148,080
Operating income		13,146
Income from real estate fund investments		5,221
Income from partially owned entities		975
Unrealized gains on interest rate swaps		11,978
Interest and other income, net		854
Interest and debt expense		(41,888	)
Acquisition and transaction related costs		(1,139	)
Net loss before income taxes		(10,853	)
Income tax expense		(574	)
Net loss		(11,427	)
Less net (income) loss attributable to noncontrolling interests in:
Consolidated joint ventures and funds		(668	)
Operating Partnership		2,364
Net loss attributable to Paramount Group, Inc.	$	(9,731	)
Weighted average common shares outstanding
Basic		212,106,718
Diluted		212,106,718
Net loss per share attributable to Paramount Group, Inc.
Basic	$	(0.05	)
Diluted	$	(0.05	)

⁽¹⁾  Includes $3,315 of severance costs and $733 of expense from the mark-to-market of investments in our deferred compensation plan for which there is a corresponding increase in interest and other income, net.

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	FUNDS FROM OPERATIONS (“FFO”)
(unaudited and in thousands, except share and per share data)

	Quarter Ended
	March 31, 2015
Reconciliation of net loss to FFO:
Net loss	$	(11,427	)
Real estate depreciation and amortization		73,583
Pro rata share of real estate depreciation and amortization of partially owned entities		1,476
FFO (1)		63,632
Less FFO attributable to noncontrolling interests in:
Consolidated joint ventures and funds		(9,789	)
Operating Partnership		(10,526	)
FFO attributable to Paramount Group, Inc. (1)	$	43,317
Per diluted share	$	0.20
Reconciliation of FFO to Core FFO:
FFO	$	63,632
Non-core (income) expense:
Acquisition, transaction and formation related costs		1,139
Severance costs		3,315
Unrealized gains on interest rate swaps		(11,978	)
Pro rata share of unrealized gains on interest rate swaps of partially owned entities		(386	)
Core FFO (1)		55,722
Less Core FFO attributable to noncontrolling interests in:
Consolidated joint ventures and funds		(7,291	)
Operating Partnership		(9,468	)
Core FFO attributable to Paramount Group, Inc. (1)	$	38,963
Per diluted share	$	0.18
Reconciliation of weighted average shares outstanding:
Weighted average shares outstanding		212,106,718
Effect of dilutive securities		11,928
Denominator for FFO per diluted share		212,118,646

⁽¹⁾  See page 24 for our definition of this measure.

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	FUNDS AVAILABLE FOR DISTRIBUTION (“FAD”)
(unaudited and in thousands)

	Quarter Ended
	March 31, 2015
Reconciliation of Core FFO to FAD
Core FFO	$	55,722
Add:
Amortization of non-cash compensation expense		1,174
Amortization of deferred financing costs		584
Less:
Recurring tenant improvements, leasing commissions and other capital expenditures		(18,093	)
Straight-line rent adjustments		(15,951	)
Amortization of below-market leases, net		(890	)
Pro rata share of straight-line rent adjustments of partially owned entities		41
FAD (1)		22,587
Less FAD attributable to noncontrolling interests in:
Consolidated joint ventures and funds		(1,228	)
Operating Partnership		(4,176	)
FAD attributable to Paramount Group, Inc. (1)	$	17,183

⁽¹⁾  See page 24 for our definition of this measure.

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	NET OPERATING INCOME (“NOI”)
(unaudited and in thousands)

	Quarter Ended
	March 31, 2015
Reconciliation of net loss to NOI:
Net loss	$	(11,427	)
Add:
Depreciation and amortization		73,583
General and administrative expenses		12,613
Interest and debt expense		41,888
Acquisition and transaction related costs		1,139
Income tax expense		574
NOI from partially owned entities		3,781
Less:
Income from real estate fund investments		(5,221	)
Income from partially owned entities		(975	)
Fee income		(1,535	)
Unrealized gains on interest rate swaps		(11,978	)
Interest and other income, net		(854	)
NOI (1)		101,588
Less NOI attributable to noncontrolling interests in consolidated joint ventures		(13,619	)
Pro rata share of NOI (1)	$	87,969
Reconciliation of NOI to Cash NOI:
NOI	$	101,588
Less:
Straight-line rent adjustments		(15,951	)
Amortization of below-market leases, net		(890	)
Pro rata share of straight-line rent adjustments of partially owned entities		41
Cash NOI (1)		84,788
Less Cash NOI attributable to noncontrolling interests in consolidated joint ventures		(9,447	)
Pro rata share of Cash NOI (1)	$	75,341

⁽¹⁾  See page 24 for our definition of this measure.

- 11 -

	EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (“EBITDA”)
(unaudited and in thousands)

	Quarter Ended
	March 31, 2015
Reconciliation of net loss to EBITDA:
Net loss	$	(11,427	)
Add:
Depreciation and amortization		73,583
Interest and debt expense		41,888
Income tax expense		574
Pro rata share of above adjustments of partially owned entities		3,190
EBITDA (1)		107,808
Less EBITDA attributable to noncontrolling interests in consolidated joint ventures and funds		(19,323	)
Pro rata share of EBITDA (1)	$	88,485
Reconciliation of EBITDA to Adjusted EBITDA:
EBITDA	$	107,808
Add:
EBITDA from real estate fund investments		(4,010	)
Acquisition, transaction and formation related costs		1,139
Severance costs		3,315
Unrealized gains on interest rate swaps		(11,978	)
Pro rata share of unrealized gains on interest rate swaps of partially owned entities		(386	)
Adjusted EBITDA (1)		95,888
Less Adjusted EBITDA attributable to noncontrolling interests in consolidated joint ventures		(13,411	)
Pro rata share of Adjusted EBITDA (1)	$	82,477

⁽¹⁾  See page 24 for our definition of this measure.

- 12 -

	CONSOLIDATED JOINT VENTURES - BALANCE SHEETS
(unaudited and in thousands)

	As of March 31, 2015
	Consolidated Properties
	31 West		One		Real Estate
	52nd Street		Market Plaza		Funds (1)		Total
Ownership %	64.2%		49.0%		Various
ASSETS:
Rental property, net	$	821,446	$	1,273,192	$	65,109	$	2,159,747
Real estate fund investments		—		—		324,282		324,282
Cash and cash equivalents		18,519		6,219		24,130		48,868
Restricted cash		9		33,761		—		33,770
Deferred rent receivable		1,370		4,698		—		6,068
Accounts and other receivables, net		322		232		277		831
Deferred charges, net		—		753		—		753
Intangible assets, net		85,942		88,644		—		174,586
Other assets		3,486		310		—		3,796
Total Assets	$	931,094	$	1,407,809	$	413,798	$	2,752,701
LIABILITIES:
Mortgages and notes payable	$	413,490	$	854,515	$	—	$	1,268,005
Loans payable to noncontrolling interests		—		—		43,188		43,188
Accounts payable and accrued expenses		3,410		19,158		153		22,721
Interest rate swap liabilities		27,290		82,226		—		109,516
Intangible liabilities, net		44,258		78,079		—		122,337
Other liabilities		841		1,230		774		2,845
Total Liabilities		489,289		1,035,208		44,115		1,568,612
EQUITY:
Paramount Group, Inc. stockholders’ equity		283,677		182,638		32,598		498,913
Noncontrolling interests in consolidated joint ventures and Funds		158,128		189,963		337,085		685,176
Total Equity		441,805		372,601		369,683		1,184,089
TOTAL LIABILITIES AND EQUITY	$	931,094	$	1,407,809	$	413,798	$	2,752,701

⁽¹⁾  See page 19 for details of our ownership interest in the Funds and the Funds’ ownership interest in the underlying investments.

- 13 -

	CONSOLIDATED JOINT VENTURES - OPERATING RESULTS
(unaudited and in thousands)

	Quarter ended March 31, 2015
	Consolidated Properties
	31 West			One			Real Estate
	52nd Street			Market Plaza			Funds (1)			Total
Ownership Percentage	64.2%			49.0%			Various
Total revenues	$	17,121		$	25,816		$	811		$	43,748
Total expenses		12,638			19,710			551			32,899
Operating income (loss)		4,483			6,106			260			10,849
Income (loss) from real estate fund investments		—			—			5,221			5,221
Unrealized gains on interest rate swaps		1,457			3,874			—			5,331
Interest and other income, net		15			3			—			18
Interest and debt expense		(5,156	)		(13,124	)		(993	)		(19,273	)
Net income (loss) before income taxes		799			(3,141	)		4,488			2,146
Income tax expense		—			(2	)		(1	)		(3	)
Net income (loss)		799			(3,143	)		4,487			2,143
Less net (income) loss attributable to noncontrolling interests in consolidated joint ventures and funds		(164	)		1,705			(2,209	)		(668	)
Net income (loss) attributable to Paramount Group, Inc.	$	635		$	(1,438	)	$	2,278		$	1,475
Reconciliation of net income (loss) to FFO:
Net income (loss)	$	799		$	(3,143	)	$	4,487		$	2,143
Real estate depreciation and amortization		6,514			12,901			243			19,658
FFO (2)		7,313			9,758			4,730			21,801
Less FFO attributable to noncontrolling interests in consolidated joint ventures and funds		(2,496	)		(4,873	)		(2,420	)		(9,789	)
FFO attributable to Paramount Group, Inc. (2)	$	4,817		$	4,885		$	2,310		$	12,012
Reconciliation of FFO to Core FFO:
FFO	$	7,313		$	9,758		$	4,730		$	21,801
Less: Unrealized gains on interest rate swaps		(1,457	)		(3,874	)		—			(5,331	)
Core FFO (2)		5,856			5,884			4,730			16,470
Less: Core FFO attributable to noncontrolling interests		(1,974	)		(2,897	)		(2,420	)		(7,291	)
Core FFO attributable to Paramount Group, Inc. (2)	$	3,882		$	2,987		$	2,310		$	9,179

⁽¹⁾  See page 19 for details of our ownership interest in the Funds and the Funds’ ownership interest in the underlying investments.

⁽²⁾  See page 24 for our definition of this measure.

- 14 -

	CAPITAL STRUCTURE
(unaudited and in thousands, except share and per share data)

					March 31, 2015
Debt:
Consolidated debt:
Mortgages and notes payable					$	2,852,754
$1.0 billion credit facility						—
						2,852,754
Less:
Noncontrolling interests’ share of consolidated debt (One Market Plaza and 31 West 52nd Street)						(583,832	)
Add:
Pro rata share of unconsolidated joint venture debt (712 Fifth Avenue)						123,250
Total debt						2,392,172
	Shares / Units Outstanding		Share Price at March 31, 2015
Equity:
Common stock		212,106,718	$	19.30		4,093,660
Operating Partnership units		51,543,993		19.30		994,799
		263,650,711		19.30		5,088,459
Total Market Capitalization					$	7,480,631

- 15 -

	DEBT ANALYSIS
(unaudited and in thousands)

	Total Debt						Fixed Rate Debt						Variable Rate Debt
	Amount			Rate			Amount			Rate			Amount			Rate
Consolidated Debt:
1633 Broadway	$	926,260			5.35	%	$	772,100			6.11	%	$	154,160			1.56	%
31 West 52nd Street		413,490			4.99	%		337,500			5.74	%		75,990			1.66	%
900 Third Avenue		274,337			5.09	%		255,000			5.35	%		19,337			1.76	%
Waterview		210,000			5.76	%		210,000			5.76	%		—			—
1899 Pennsylvania Avenue		90,152			4.88	%		90,152			4.88	%		—			—
Liberty Place		84,000			4.50	%		84,000			4.50	%		—			—
One Market Plaza		854,515			6.14	%		840,000			6.16	%		14,515			5.00	%
Total consolidated debt		2,852,754			5.50	%		2,588,752			5.88	%		264,002			1.79	%
Noncontrolling interests’ share		(583,832	)					(549,225	)					(34,607	)
Pro rata share of consolidated debt	$	2,268,922			5.41	%	$	2,039,527			5.83	%	$	229,395			1.70	%
Unconsolidated Joint Venture Debt:
712 Fifth Avenue	$	246,500			4.08	%	$	135,000			5.78	%	$	111,500			2.02	%
Joint venture partners’ share		(123,250	)					(67,500	)					(55,750	)
Pro rata share of unconsolidated debt	$	123,250			4.08	%	$	67,500			5.78	%	$	55,750			2.02	%
Pro Rata Share of Total Debt	$	2,392,172			5.34	%	$	2,107,027			5.83	%	$	285,145			1.76	%

	Required	Actual
Credit Facility Covenants: (1)
Total Debt / Total Assets	Less than 60%		40.8	%
Secured Debt / Total Assets	Less than 50%		37.2	%
Fixed Charge Coverage	Greater than 1.5x		2.0	x
Unsecured Debt / Unencumbered Assets	Less than 60%		14.2	%
Unencumbered Interest Coverage	Greater than 1.75x		10.5	x

	Amount		%
Debt Composition:
Fixed rate debt:
Pro rata consolidated fixed rate debt	$	2,039,527
Pro rata unconsolidated fixed rate debt		67,500
Total fixed rate debt		2,107,027		88.1	%
Variable rate debt:
Pro rata consolidated variable rate debt		229,395
Pro rata unconsolidated variable rate debt		55,750
Total variable rate debt		285,145		11.9	%
Pro Rata Share of Total Debt	$	2,392,172		100.0	%

⁽¹⁾ This section presents such ratios as of March 31, 2015 to show that the Company was in compliance with the terms of the credit facility, which has been filed with the SEC. Management is not presenting these ratios and the related calculations for any other purpose or for any other period, and is not intending for these measures to otherwise provide information to investors about the Company’s financial condition or results of operations. Investors should not rely on these measures other than for purposes of testing our compliance with the credit facility.

- 16 -

	DEBT MATURITIES
(unaudited and in thousands)

	2015		2016			2017			2018			2019			Thereafter			Total
Consolidated Fixed Rate Debt:
1633 Broadway	$	—	$	772,100		$	—		$	—		$	—		$	—		$	772,100
31 West 52nd Street		—		—			337,500			—			—			—			337,500
900 Third Avenue		—		—			255,000			—			—			—			255,000
Waterview		—		—			210,000			—			—			—			210,000
1899 Pennsylvania Avenue		—		—			—			—			—			90,152			90,152
Liberty Place		—		—			—			84,000			—			—			84,000
One Market Plaza		—		—			—			—			840,000			—			840,000
Total consolidated fixed rate debt	$	—	$	772,100		$	802,500		$	84,000		$	840,000		$	90,152		$	2,588,752
Weighted average rate		—		6.11	%		5.62	%		4.50	%		6.16	%		4.88	%		5.88	%
Consolidated Variable Rate Debt:
1633 Broadway	$	—	$	154,160		$	—		$	—		$	—		$	—		$	154,160
31 West 52nd Street		—		—			75,990			—			—			—			75,990
900 Third Avenue		—		—			19,337			—			—			—			19,337
One Market Plaza		—		—			—			—			14,515			—			14,515
Total consolidated variable rate debt	$	—	$	154,160		$	95,327		$	—		$	14,515		$	—		$	264,002
Weighted average rate		—		1.56	%		1.68	%		—			5.00	%		—			1.79	%
Total Consolidated Debt	$	—	$	926,260		$	897,827		$	84,000		$	854,515		$	90,152		$	2,852,754
Weighted Average Rate		—		5.35	%		5.20	%		4.50	%		6.14	%		4.88	%		5.50	%
% of Debt Maturing		—		32.5	%		31.5	%		2.9	%		30.0	%		3.1	%		100.0	%

- 17 -

	PORTFOLIO SUMMARY
(unaudited)

													Annualized Rent (2)
Property	Submarket	% Ownership			Square Feet (1)		% Occupied (2)			% Leased (2)			Amount		Per Square Foot (3)
New York:
1633 Broadway	West Side		100.0	%		2,643,065		95.7	%		95.7	%	$	159,712,000	$	69.67
1301 Avenue of the Americas	Sixth Ave / Rock Center		100.0	%		1,767,992		85.4	%		91.2	%		110,393,000		73.76
1325 Avenue of the Americas	Sixth Ave / Rock Center		100.0	%		814,892		94.1	%		97.2	%		48,457,000		65.96
31 West 52nd Street	Sixth Ave / Rock Center		64.2	%		786,647		98.8	%		100.0	%		57,171,000		75.95
900 Third Avenue	East Side		100.0	%		596,270		93.2	%		96.0	%		39,580,000		71.85
712 Fifth Avenue	Madison/Fifth		50.0	%		543,341		98.5	%		98.5	%		56,245,000		105.62
Subtotal / Weighted Average						7,152,207		93.3	%		95.5	%		471,558,000		74.23
Washington, D.C.:
Waterview	Rosslyn, VA		100.0	%		647,243		98.9	%		98.9	%		33,345,000		50.86
425 Eye Street	East End		100.0	%		380,090		88.9	%		88.9	%		15,205,000		45.66
2099 Pennsylvania Avenue	CBD		100.0	%		208,636		62.0	%		62.0	%		9,949,000		76.99
1899 Pennsylvania Avenue	CBD		100.0	%		192,481		71.9	%		88.8	%		10,966,000		80.59
Liberty Place	East End		100.0	%		174,205		51.7	%		80.1	%		6,798,000		72.43
Subtotal / Weighted Average						1,602,655		83.3	%		88.5	%		76,263,000		56.61
San Francisco:
One Market Plaza	South Financial District		49.0	%		1,611,125		90.1	%		96.7	%		83,791,000		61.24
Total / Weighted Average						10,365,987		91.3	%		94.6	%	$	631,612,000	$	69.69

⁽¹⁾  Represents the remeasured square feet, which includes an aggregate of 195,148 square feet of either REBNY or BOMA remeasurement adjustments that are not reflected in current leases.

⁽²⁾  See page 24 for our definition of this measure.

⁽³⁾  Excludes square feet and revenue from parking, storage, theater, signage and roof space.

- 18 -

	FUNDS SUMMARY
(unaudited)

Property Funds:

The following is a summary of the Property Funds, our ownership interest in these Funds and the Funds’ ownership interest in the underlying investments, as of March 31, 2015.

	%			60 Wall			One Market			50 Beale
	Ownership			Street			Plaza			Street
Fund II		10.0	%		46.3	%		—			—
Fund III		3.1	%		16.0	%		2.0	%		—
Fund VII/VII-H		7.2	%		—			—			42.8	%
Total Property Funds					62.3	%		2.0	%		42.8	%
Other Investors					37.7	%		98.0	% (1)		57.2	%
Total					100.0	%		100.0	%		100.0	%

The following is a summary of the Property Fund investments and our ownership interest in the underlying investments, as of March 31, 2015.

		%			Square		%			Annualized Rent (2)
	Submarket	Ownership			Feet		Leased			Amount			Per Square Foot (3)
60 Wall Street	Downtown		5.1	%		1,625,483		100.0	%	$	67,000,000	(4)	$	41.22	(4)
50 Beale Street	South Financial District		3.1	%		663,483		89.9	%		30,501,000			49.24

Alternative Investment Funds:

The following is a summary of our ownership interest in the Alternative Investment Funds and the Funds’ underlying investments, as of March 31, 2015.

		%		Interest/				Investment
Fund	Investment Type	Ownership		Dividend Rate		Initial Maturity		Total		Our Share
Fund VIII	Mezzanine loan		2.1%		8.3%		Jan-2022	$	46,750,000	$	964,000
PGRESS Funds	Preferred Equity Investments		4.9% - 5.4%		10.3% - 15.0%		Sep-2015 - Feb-2019		94,922,000		4,577,000

⁽¹⁾ Includes a 49% direct ownership interest held by us.

⁽²⁾ See page 24 for our definition of this measure.

⁽³⁾ Excludes square feet and revenue from parking, storage, signage and roof space.

⁽⁴⁾ Represents triple net base rent only.

- 19 -

	TOP TENANTS AND INDUSTRY DIVERSIFICATION
(unaudited)

	Lease			Square Feet			% of Total			Annualized Rent (1)				% of Annualized
	Expiration			Occupied			Square Feet			Amount		Per Square Foot		Rent
Top 10 Tenants:
The Corporate Executive Board Company		Jan-2028			625,062			6.0	%	$	31,709,000	$	50.73		5.0	%
Barclays Capital, Inc.		Dec-2020			497,418			4.8	%		28,924,000		58.15		4.6	%
Allianz Global Investors, LP		Jan-2031	(2)		326,457	(2)		3.1	%		26,034,000		79.75		4.1	%
Credit Agricole Corporate & Investment Bank		Feb-2023			313,879			3.0	%		25,219,000		80.35		4.0	%
Clifford Chance, LLP		Jun-2024			328,992			3.2	%		24,949,000		75.83		4.0	%
Commerzbank AG		May-2016			287,535			2.8	%		24,260,000		84.37		3.8	%
Kasowitz Benson Torres & Friedman, LLP		Mar-2037	(3)		302,213	(3)		2.9	%		18,799,000		62.20		3.0	%
Deloitte & Touche, LLP		Mar-2016			212,052			2.0	%		16,619,000		78.37		2.6	%
WMG Acquisition Corp. (Warner Music Group)		Jul-2029			293,487			2.8	%		16,052,000		54.69		2.5	%
Chadbourne & Parke, LLP		Sep-2034			203,102			2.0	%		15,836,000		77.97		2.5	%

	Square Feet		% of Occupied			Annualized		% of Annualized
	Occupied		Square Feet			Rent		Rent
Industry Diversification:
Financial Services		3,654,038		39.8	%	$	269,692,000		42.7	%
Legal Services		1,815,976		19.8	%		131,857,000		20.9	%
Technology and Media		1,255,658		13.7	%		75,235,000		11.9	%
Insurance		332,569		3.6	%		26,358,000		4.2	%
Retail		256,237		2.8	%		23,852,000		3.8	%
Real Estate		221,937		2.4	%		16,037,000		2.5	%
Government		316,700		3.4	%		14,634,000		2.3	%
Other		1,335,005		14.5	%		73,947,000		11.7	%

⁽¹⁾ See page 24 for our definition of this measure.

⁽²⁾ 5,546 of the square feet leased expires in December 2018.

⁽³⁾ 100,422 of the square feet leased expires in November 2015.

- 20 -

	LEASING ACTIVITY
(unaudited)

	Total			New York			Washington, D.C.			San Francisco
Quarter Ended March 31, 2015:
Total square feet leased		155,828			151,511			4,317			—
Pro rata share of total square feet leased:		154,288			149,971			4,317			—
Initial rent (1)	$	75.70		$	75.81		$	72.00		$	—
Weighted average lease term (years)		14.3			14.5			5.4			—
Tenant improvements and leasing commissions:
Per square foot	$	111.61		$	112.62		$	76.40		$	—
Per square foot per annum	$	7.83		$	7.76		$	14.10		$	—
Percentage of initial rent		10.3	%		10.2	%		19.6	%		—
Rent concessions:
Average free rent period (in months)		13.5			13.7			5.0			—
Average free rent period per annum (in months)		0.9			0.9			0.9			—
Second generation space:
Square feet		23,730			19,413			4,317			—
Cash basis:
Initial rent (1)	$	68.76		$	68.03		$	72.00		$	—
Prior escalated rent	$	58.60		$	56.37		$	68.58		$	—
Percentage increase		17.3	%		20.7	%		5.0	%		—
GAAP basis:
Straight-line rent	$	66.21		$	63.91		$	76.56		$	—
Prior straight-line rent	$	58.30		$	56.06		$	68.39		$	—
Percentage increase		13.6	%		14.0	%		11.9	%		—

⁽¹⁾ See page 24 for our definition of this measure.

- 21 -

	LEASE EXPIRATIONS
(unaudited)

Year of	Square Feet		Annualized Rent (1)				% of
Lease Expiration	of Expiring Leases		Amount		Per Square Foot (2)		Annualized Rent
Month to Month		7,773	$	656,000	$	71.52		0.1	%
2Q 2015		145,924		9,704,000		68.14		1.5	%
3Q 2015		242,488		19,274,000		79.60		2.9	%
4Q 2015		218,156		14,476,000		64.13		2.2	%
Total 2015		606,568		43,454,000		71.27		6.6	%
1Q 2016		217,918		17,611,000		78.30		2.7	%
Remaining 2016		755,373		53,988,000		71.13		8.2	%
2017		437,629		34,500,000		79.41		5.2	%
2018		438,080		33,658,000		76.98		5.1	%
2019		387,441		29,067,000		75.25		4.4	%
2020		1,147,676		68,825,000		62.17		10.4	%
2021		824,683		48,371,000		60.65		7.3	%
2022		321,958		19,025,000		87.33		2.9	%
2023		630,081		52,533,000		83.40		7.9	%
2024		620,801		48,036,000		77.82		7.2	%
Thereafter		3,191,098		211,831,000		65.69		32.0	%

⁽¹⁾ See page 24 for our definition of this measure.

⁽²⁾ Excludes square feet and revenue from parking, storage, theater, signage and roof space.

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	CAPITAL EXPENDITURES - CASH BASIS
(unaudited and in thousands)

	Quarter Ended March 31, 2015
Capital expenditures to maintain assets:
Recurring	$	3,754
Non-recurring		—
Total capital expenditures to maintain assets	$	3,754
Tenant improvements:
Recurring	$	10,795
Non-recurring		1,693
Total tenant improvements	$	12,488
Leasing commissions:
Recurring	$	3,544
Non-recurring		2,587
Total leasing commissions	$	6,131
Total capital expenditures, tenant improvements and leasing commissions:
Total recurring	$	18,093
Total non-recurring		4,280
Total capital expenditures, tenant improvements and leasing commissions	$	22,373
Development expenditures (1)	$	5,394

⁽¹⁾ Primarily represents development expenditures relating to the lobby and retail repositioning at One Market Plaza. Of the $25,000 budgeted, $9,175 has been expended as of March 31, 2015.

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DEFINITIONS

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) is calculated as EBITDA plus (i) acquisition, transaction and formation related costs less (ii) unrealized gains on interest rate swaps and (iii) the gain on consolidation of a partially owned entity.

Annualized Rent represents the end of period monthly base rent plus escalations in accordance with the lease terms, multiplied by 12.

Core FFO Payout Ratio is calculated as dividends per share divided by Core FFO per share.

Core Funds from Operations (“Core FFO”) is calculated as FFO plus (i) acquisition, transaction and formation related costs and (ii) defeasance and debt breakage costs less (iii) unrealized gains on interest rate swaps and (iv) the gain on consolidation of a partially owned entity.

Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) is calculated as GAAP net income or loss plus (i) depreciation and amortization (ii) interest and debt expense and (iii) income tax expense, including our share of such adjustments of unconsolidated joint ventures.

FAD Payout Ratio is calculated as total dividends divided by FAD.

FFO Payout Ratio is calculated as dividends per share divided by FFO per share.

Funds Available for Distribution (“FAD”) is calculated as Core FFO less (i) recurring tenant improvements, leasing commissions and other capital expenditures (ii) straight-line rent adjustments and (iii) amortization of above and below-market leases, net, plus (iv) amortization of non-cash compensation expense and (v) amortization of deferred financing costs.

Funds from Operations (“FFO”) is calculated in accordance with the definition adopted by National Association of Real Estate Investment Trusts (“NAREIT”). NAREIT defines FFO as GAAP net income or loss adjusted to exclude net gains from sales of depreciated real estate assets, impairment losses on depreciable real estate and depreciation and amortization expense from real estate assets, including our share of such adjustments of unconsolidated joint ventures.

Initial Rent represents the weighted average cash basis starting rent per square foot and does not include free rent or periodic step-ups in rent.

Leased % represents percentage of square feet that is leased, including signed leases not yet commenced.

Net Operating Income (“NOI”) is calculated as GAAP net income or loss plus (i) depreciation and amortization (ii) general and administrative expenses (iii) interest and debt expense (iv) acquisition, formation and transaction related costs and (v) income tax expense less (vi) fee income (vii) unrealized gains on interest rate swaps (viii) interest and other income and (ix) the gain on consolidation of a partially owned entity, including our share of such adjustments of unconsolidated joint ventures. We also present Cash NOI which deducts from NOI, straight-line rent adjustments and the amortization of above and below-market leases, net, including our share of such adjustments of unconsolidated joint ventures. In addition, we present our pro rata share of NOI and Cash NOI which represents our share of NOI and Cash NOI of consolidated and unconsolidated joint ventures, based on our percentage ownership in the underlying assets.

Occupied % represents the percentage of space for which we have commenced rental revenue in accordance with GAAP.

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