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): November 5, 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 November 5, 2015, Paramount Group, Inc. (the “Company”) issued a press release announcing its financial results for the third quarter ended September 30, 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 Time on November 6, 2015, to discuss third 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 archived on the Company’s website and will be available through November 13, 2015, by dialing 1-877-870-5176 (domestic) and 1-858-384-5517 (international) and entering the passcode 13621407.

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 common stockholders was $42.3 million, or $0.20 per diluted share, for the quarter ended September 30, 2015. Net income attributable to common stockholders, which is the most directly comparable GAAP financial measure, was $1.1 million, or $0.01 per diluted share, for the quarter ended September 30, 2015.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits:

Exhibit Number	Description
99.1	Press release dated November 5, 2015 and entitled “Paramount Announces Third Quarter 2015 Results”
99.2	Supplemental information entitled “Paramount Group, Inc. Supplemental Operating and Financial Data for the Quarter Ended September 30, 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: November 5, 2015

EX-99.1

Exhibit 99.1

Paramount Announces Third Quarter 2015 Results

– Reports Core FFO of $0.20 per Diluted Share –

– Leases over 1 million square feet through the end of October –

– Raises Guidance for Full Year 2015 –

NEW YORK—November 5, 2015 – Paramount Group, Inc. (NYSE: PGRE) (the “Company”) today reported results for the quarter ended September 30, 2015.

Third Quarter Highlights:

• Reported Core Funds from Operations (“Core FFO”) attributable to common stockholders of $42.3 million, or $0.20 per diluted share, for the quarter ended September 30, 2015.

• Leased 390,142 square feet at a weighted average initial rent of $80.97 per square foot, of which 325,217 square feet represents second generation space for which the Company achieved positive mark-to-markets of 13.4% on a cash basis and 8.8% on a GAAP basis.

• On September 15, 2015, the Company’s Board of Directors declared a regular quarterly cash dividend of $0.095 per share for the third quarter ended September 30, 2015, which was paid on October 15, 2015.

• On September 16, 2015, the Company entered into forward starting interest rate swaps with an aggregate notional amount of $1.0 billion at a weighted average interest rate of 1.79% and a weighted average term of 5.9 years. The forward starting interest rate swaps were entered into in advance of the anticipated refinancing of mortgage debt at 1633 Broadway.

• On September 30, 2015, Fund VIII (the Company’s debt fund), made a $40.0 million mezzanine loan secured by the equity interests in the owner of 1440 Broadway, a 751,546 square foot office and retail property located on the southeast corner of Broadway and 40^th Street in Manhattan. The loan bears interest at LIBOR plus 600 bps, matures in October 2019 and has a one-year extension option.

Transactions Subsequent to the Third Quarter:

• On October 1, 2015, the Company completed the previously announced acquisition of the remaining 35.8% ownership interest that it did not own in 31 West 52nd Street from its joint venture partner for $378 million, comprised of $230.0 million in cash and the assumption of $148.0 million of existing debt.

• On October 29, 2015, Fund VII (the Company’s real estate equity fund) completed the previously announced acquisition of 670 Broadway, a 77,480 square foot creative office building in the NoHo submarket of Manhattan, for $112.0 million.

• During October 2015, the Company leased an additional 260,829 square feet at 1633 Broadway, bringing total leased space for the portfolio in 2015 to 1,006,771 square feet.

1

Financial Results

Quarter Ended September 30, 2015

Net income attributable to common stockholders was $1.1 million, or $0.01 per diluted share, for the quarter ended September 30, 2015.

FFO attributable to common stockholders was $51.8 million, or $0.24 per diluted share. FFO attributable to common stockholders includes the impact of (i) unrealized gains on interest rate swaps, including the Company’s pro rata share of such gains of an unconsolidated joint venture and (ii) acquisition and transaction related costs. The aggregate of these items, net of amounts attributable to noncontrolling interests, increased FFO attributable to common stockholders by $9.5 million, or $0.04 per diluted share.

Core FFO attributable to common stockholders, which excludes the impact of these items, was $42.3 million, or $0.20 per diluted share, for the quarter ended September 30, 2015.

Nine Months Ended September 30, 2015

Net loss attributable to common stockholders was $13.3 million, or $0.06 per diluted share, for the nine months ended September 30, 2015.

FFO attributable to common stockholders was $147.8 million, or $0.70 per diluted share. FFO attributable to common stockholders includes the impact of (i) unrealized gains on interest rate swaps, including the Company’s pro rata share of such gains of an unconsolidated joint venture, (ii) transfer taxes due in connection with the sale of shares by a former joint venture partner, (iii) acquisition and transaction related costs, (iv) a true-up in the income tax liability related to the Company’s predecessor and (v) severance costs. The aggregate of these items, net of amounts attributable to noncontrolling interests, increased FFO attributable to common stockholders by $20.2 million, or $0.10 per diluted share.

Core FFO attributable to common stockholders, which excludes the impact of these items, was $127.6 million, or $0.60 per diluted share, for the nine months ended September 30, 2015.

Portfolio Operations

Quarter Ended September 30, 2015

During the third quarter, the Company leased 390,142 square feet at a weighted average initial rent of $80.97 per square foot. This leasing activity, offset by lease expirations during the quarter, decreased portfolio wide leased percentage by 190 basis points from June 30, 2015. Of the 390,142 square feet leased in the third quarter, 325,217 square feet represents second generation space (space that has been vacant for less than twelve months) for which the Company achieved positive mark-to-markets of 13.4% on a cash basis and 8.8% on a GAAP basis. The weighted average lease term for leases signed during the third quarter was 9.4 years and weighted average tenant improvements and leasing commissions on these leases were $7.66 per square foot per annum, or 9.5% of initial rent.

2

Nine Months Ended September 30, 2015

During the nine months ended September 30, 2015, the Company leased 745,942 square feet at a weighted average initial rent of $77.36 per square foot. Of 745,942 square feet leased during the nine months, 487,178 square feet represents second generation space for which the Company achieved positive mark-to-markets of 14.1% on a cash basis and 13.0% on a GAAP basis. The weighted average lease term for leases signed during the nine months was 11.0 years and weighted average tenant improvements and leasing commissions on these leases were $7.64 per square foot per annum, or 9.9% of initial rent.

Guidance

Based on the Company’s performance for the nine months ended September 30, 2015 and its outlook for the remainder of 2015, including the Company’s acquisition of the 35.8% joint venture interest in 31 West 52^nd Street that it did not previously own, the Company is raising its Projected Core FFO Guidance for 2015 to a range of $0.80 to $0.82 per diluted share, from its prior range of $0.79 to $0.81 per diluted share. The Company is providing the following reconciliation of Projected Core FFO per diluted share to estimated net loss per diluted share in accordance with GAAP. The estimated net loss per diluted share is not a projection and is being provided solely to satisfy the disclosure requirements of the U.S. Securities and Exchange Commission.

For the Year Ending December 31, 2015:	Low			High
Estimated net loss attributable to common stockholders per diluted share	$	(0.10	)	$	(0.08	)
Pro rata share of real estate depreciation and amortization, including the Company’s share of unconsolidated joint ventures		1.00			1.00
Adjustments for non-core items1		(0.10	)		(0.10	)
Projected Core FFO per diluted share	$	0.80		$	0.82

Except as described above, these estimates reflect management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels and the earnings impact of the events referenced in this release and otherwise referenced during the conference call referred to below. The estimates do not include the impact on operating results from possible future property acquisitions or dispositions, capital markets activity or unrealized gains or losses on real estate fund investments. The estimates set forth above may be subject to fluctuations as a result of several factors, including the straight lining of rental income and the amortization of above and below market leases. There can be no assurance that the Company’s actual results will not differ materially from the estimates set forth above.

¹  Represents non-core items for the nine months ended September 30, 2015, which are summarized in this press release and the Company’s Supplemental Information for the quarter ended September 30, 2015, which is available on the Company’s website. The Company is not making projections for non-core items that may impact its financial results in the fourth quarter of 2015, which may include unrealized gains or losses on interest rate swaps, acquisition and transaction related costs and other items that are not included in Core FFO.

3

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.

Non GAAP Financial Measures

FFO is a supplemental measure of our performance. We present FFO in accordance with the definition adopted by the National Association of Real Estate Investment Trusts, (“NAREIT”). NAREIT defines FFO as 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 Information for the quarter ended September 30, 2015, which is available on our website.

4

Investor Conference Call and Webcast

The Company will host a webcast and conference call at 10:00 a.m. Eastern Time on November 6, 2015, to discuss third quarter 2015 results. The number to call is 1-877-407-0789 (domestic) or 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 archived on the Company’s website and will be available through November 13, 2015, by dialing 1-877-870-5176 (domestic) or 1-858-384-5517 (international) and entering the passcode 13621407.

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.

Contact Information:

Investor Relations:

212-492-2298

ir@paramount-group.com

Media:

212-492-2285

pr@paramount-group.com

5

Paramount Group, Inc.

Consolidated Balance Sheets

(Unaudited and in thousands)

	September 30, 2015			December 31, 2014
ASSETS:
Rental Property
Land	$	2,042,071		$	2,042,071
Buildings and improvements		5,567,789			5,488,168
		7,609,860			7,530,239
Accumulated depreciation and amortization		(202,105	)		(81,050	)
Rental Property, net		7,407,755			7,449,189
Real estate fund investments		336,393			323,387
Investments in unconsolidated joint ventures		6,537			5,749
Cash and cash equivalents		418,095			438,599
Restricted cash		92,696			55,728
Marketable securities		20,365			20,159
Deferred rent receivable		58,117			8,267
Accounts and other receivables, net		12,313			7,692
Deferred charges, net		54,467			39,165
Intangible assets, net		546,432			669,385
Other assets		33,636			13,121
Total Assets	$	8,986,806		$	9,030,441
LIABILITIES:
Mortgages and notes payable	$	2,853,735		$	2,852,287
Credit facility		—			—
Due to affiliates		27,299			27,299
Loans payable to noncontrolling interests		44,822			42,195
Accounts payable and accrued expenses		97,157			93,472
Dividends and distributions payable		25,066			—
Deferred income taxes		2,560			2,861
Interest rate swap liabilities		163,301			194,196
Intangible liabilities, net		193,042			219,228
Other liabilities		44,958			43,950
Total Liabilities		3,451,940			3,475,488
EQUITY:
Paramount Group, Inc. stockholders’ equity		3,855,843			3,910,862
Noncontrolling interests in consolidated joint ventures and funds		781,343			685,888
Noncontrolling interests in Operating Partnership		897,680			958,203
Total Equity	$	5,534,866		$	5,554,953
Total Liabilities and Equity	$	8,986,806		$	9,030,441

6

Paramount Group, Inc.

Consolidated Statements of Income

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

	Quarter Ended September 30, 2015			Nine Months Ended September 30, 2015
REVENUES:
Property rentals	$	127,176		$	382,532
Straight-line rent adjustments		17,817			49,859
Amortization of below-market leases, net		1,477			3,239
Rental income		146,470			435,630
Tenant reimbursement income		14,405			39,956
Fee income		2,085			5,400
Other income		4,766			10,894
Total revenues		167,726			491,880
EXPENSES:
Operating		63,354			183,019
Depreciation and amortization		70,654			223,658
General and administrative		6,666			28,412
Acquisition and transaction related costs		485			9,832
Total expenses		141,159			444,921
Operating income		26,567			46,959
Income from real estate fund investments		10,933			30,226
Income from unconsolidated joint ventures		1,458			4,444
Unrealized gains on interest rate swaps		15,772			49,497
Interest and other income (loss), net		(1,763	)		(397	)
Interest and debt expense		(42,821	)		(126,945	)
Net income before income taxes		10,146			3,784
Income tax expense		(789	)		(2,706	)
Net income		9,357			1,078
Less net (income) loss attributable to noncontrolling interests in:
Consolidated joint ventures and funds		(7,969	)		(17,641	)
Operating partnership		(272	)		3,239
Net income (loss) attributable to common stockholders	$	1,116		$	(13,324	)
Net income (loss) per share attributable to common stockholders:
Basic	$	0.01		$	(0.06	)
Diluted	$	0.01		$	(0.06	)
Weighted average common shares outstanding:
Basic		212,106,718			212,106,718
Diluted		212,108,079			212,106,718

7

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 September 30, 2015			Nine Months Ended September 30, 2015
Reconciliation of net income to FFO and Core FFO:
Net income	$	9,357		$	1,078
Real estate depreciation and amortization		70,654			223,658
Pro rata share of real estate depreciation and amortization of unconsolidated joint ventures		1,512			4,518
FFO		81,523			229,254
Less FFO attributable to noncontrolling interests in consolidated joint ventures and funds		(17,094	)		(45,497	)
FFO attributable to Paramount Group Operating Partnership		64,429			183,757
Less FFO attributable to noncontrolling interests in Operating Partnership		(12,619	)		(35,967	)
FFO attributable to common stockholders	$	51,810		$	147,790
Per diluted share	$	0.24		$	0.70
FFO	$	81,523		$	229,254
Non-core (income) expense:
Transfer taxes due in connection with sale of shares by former joint venture partner		—			5,872
Acquisition and transaction related costs		485			3,960
Predecessor income tax true-up		—			721
Severance costs		—			3,315
Unrealized gains on interest rate swaps		(15,772	)		(49,497	)
Pro rata share of unrealized gains on interest rate swaps of an unconsolidated joint venture		(37	)		(1,047	)
Core FFO		66,199			192,578
Less Core FFO attributable to noncontrolling interests in consolidated joint ventures and funds		(13,560	)		(33,916	)
Core FFO attributable to Paramount Group Operating Partnership		52,639			158,662
Less Core FFO attributable to noncontrolling interests in Operating Partnership		(10,309	)		(31,054	)
Core FFO attributable to common stockholders	$	42,330		$	127,608
Per diluted share	$	0.20		$	0.60

8

Paramount Group, Inc.

Reconciliation of Net Income to Funds from Operations

and Core Funds from Operations – continued

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

	Quarter Ended September 30, 2015		Nine Months Ended September 30, 2015
Reconciliation of weighted average shares outstanding:
Weighted average shares outstanding		212,106,718		212,106,718
Effect of dilutive securities		1,361		4,004
Denominator for FFO per diluted share		212,108,079		212,110,722

9

EX-99.2

Exhibit 99.2

SUPPLEMENTAL OPERATING AND FINANCIAL DATA

FOR THE QUARTER ENDED SEPTEMBER 30, 2015

FORWARD-LOOKING STATEMENTS

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

- 2 -

TABLE OF CONTENTS

	Page
Company Profile	4
Research Coverage	5
Selected Financial Information
Financial Highlights	6
Consolidated Balance Sheets	7
Consolidated Statements 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 and Funds	13 - 14
Unconsolidated Joint Ventures	15 - 16
Capital Structure	17
Debt Analysis	18
Debt Maturities	19
Selected Property Data
Portfolio Summary	20
Funds Summary	21
Top Tenants and Industry Diversification	22
Leasing Activity	23 - 24
Lease Expirations	25
Capital Expenditures - Cash Basis	26
Definitions	27

- 3 -

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

- 4 -

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	Richard Anderson	Vance Edelson	Ross Nussbaum
Green Street Advisors	Mizuho Securities USA Inc.	Morgan Stanley	UBS
(949) 640-8780	(212) 205-8445	(212) 761-0078	(212) 713-2484
Brendan Maiorana
Wells Fargo
(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.

- 5 -

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

	Quarter Ended
	September 30, 2015			June 30, 2015			March 31, 2015
SELECTED FINANCIAL DATA
Total revenues	$	167,726		$	162,928		$	161,226
Pro rata share of NOI (1)	$	91,428		$	92,452		$	87,969
Pro rata share of Cash NOI (1)	$	77,223		$	80,457		$	75,341
Net income (loss) attributable to common stockholders	$	1,116		$	(4,709	)	$	(9,731	)
Per share - basic	$	0.01		$	(0.02	)	$	(0.05	)
Per share - diluted	$	0.01		$	(0.02	)	$	(0.05	)
FFO attributable to common stockholders (1)	$	51,810		$	52,663		$	43,317
Per share - diluted	$	0.24		$	0.25		$	0.20
FFO payout ratio (1)		38.9	%		38.3	%		46.5	%
Core FFO attributable to common stockholders (1)	$	42,330		$	46,315		$	38,963
Per share - diluted	$	0.20		$	0.22		$	0.18
Core FFO payout ratio (1)		47.6	%		43.5	%		51.7	%
FAD attributable to common stockholders (1)	$	22,449		$	21,635		$	16,852
FAD payout ratio (1)		89.8	%		93.1	%		119.6	%

COMMON SHARE DATA

	Quarter Ended
	September 30, 2015			June 30, 2015			March 31, 2015
Share Price
High	$	18.35		$	19.73		$	20.21
Low	$	15.65		$	16.97		$	17.66
Closing (end of period)	$	16.80		$	17.16		$	19.30
Dividends per common share	$	0.095		$	0.095		$	0.095	(2)
Annualized dividends per common share	$	0.380		$	0.380		$	0.380
Dividend yield (on closing share price)		2.3	%		2.2	%		2.0	%

PORTFOLIO STATISTICS

	Number of		Square		% Occupied (1)			% Leased (1)
	Properties		Feet		at September 30, 2015			at September 30, 2015
Region:
New York		6		7,152,207		90.4	%		92.3	%
Washington, D.C.		5		1,602,655		88.5	%		90.3	%
San Francisco		1		1,611,125		96.7	%		98.4	%
		12		10,365,987		91.1	%		92.9	%

⁽¹⁾  See page 27 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.

- 6 -

	CONSOLIDATED BALANCE SHEETS
(unaudited and in thousands)

	September 30, 2015			June 30, 2015			March 31, 2015			December 31, 2014
ASSETS:
Rental Property
Land	$	2,042,071		$	2,042,071		$	2,042,071		$	2,042,071
Buildings and improvements		5,567,789			5,534,885			5,503,475			5,488,168
		7,609,860			7,576,956			7,545,546			7,530,239
Accumulated depreciation and amortization		(202,105	)		(162,377	)		(121,165	)		(81,050	)
Rental Property, net		7,407,755			7,414,579			7,424,381			7,449,189
Real estate fund investments		336,393			335,545			324,282			323,387
Investments in unconsoliated joint ventures		6,537			6,128			6,370			5,749
Cash and cash equivalents		418,095			438,088			380,889			438,599
Restricted cash		92,696			45,737			53,864			55,728
Marketable securities		20,365			21,524			21,386			20,159
Deferred rent receivable		58,117			40,308			24,261			8,267
Accounts and other receivables, net		12,313			10,781			12,863			7,692
Deferred charges, net		54,467			49,547			43,713			39,165
Intangible assets, net		546,432			583,126			629,021			669,385
Other assets		33,636			9,529			31,948			13,121
Total Assets	$	8,986,806		$	8,954,892		$	8,952,978		$	9,030,441
LIABILITIES:
Mortgages and notes payable	$	2,853,735		$	2,853,237		$	2,852,754		$	2,852,287
Credit facility		—			—			—			—
Due to affiliates (1)		27,299			27,299			27,299			27,299
Loans payable to noncontrolling interests		44,822			43,981			43,188			42,195
Accounts payable and accrued expenses		97,157			96,595			78,282			93,472
Dividends and distributions payable		25,066			25,066			—			—
Deferred income taxes		2,560			2,659			3,183			2,861
Interest rate swap liabilities		163,301			160,473			182,218			194,196
Intangible liabilities, net		193,042			201,839			210,964			219,228
Other liabilities		44,958			45,922			45,742			43,950
Total Liabilities		3,451,940			3,457,071			3,443,630			3,475,488
EQUITY:
Paramount Group, Inc. stockholders’ equity		3,855,843			3,889,542			3,829,373			3,910,862
Noncontrolling interests in consolidated joint ventures and funds		781,343			703,596			685,176			685,888
Noncontrolling interests in Operating Partnership		897,680			904,683			994,799			958,203
Total Equity		5,534,866			5,497,821			5,509,348			5,554,953
TOTAL LIABILITIES AND EQUITY	$	8,986,806		$	8,954,892		$	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%.

- 7 -

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

	Quarter Ended
	September 30, 2015			June 30, 2015			March 31, 2015
REVENUES:
Property rentals	$	127,176		$	128,954		$	126,402
Straight-line rent adjustments		17,817			16,091			15,951
Amortization of below-market leases, net		1,477			872			890
Rental income		146,470			145,917			143,243
Tenant reimbursement income		14,405			12,063			13,488
Fee income		2,085			1,780			1,535
Other income		4,766			3,168			2,960
Total revenues		167,726			162,928			161,226
EXPENSES:
Operating		63,354			57,781			61,884
Depreciation and amortization		70,654			79,421			73,583
General and administrative (1)		6,666			9,133			12,613
Acquisition and transaction related costs		485			8,208			1,139
Total expenses		141,159			154,543			149,219
Operating income		26,567			8,385			12,007
Income from real estate fund investments		10,933			14,072			5,221
Income from unconsolidated joint ventures		1,458			2,011			975
Unrealized gains on interest rate swaps		15,772			21,747			11,978
Interest and other income (loss), net		(1,763	)		512			854
Interest and debt expense		(42,821	)		(42,236	)		(41,888	)
Net income (loss) before income taxes		10,146			4,491			(10,853	)
Income tax expense		(789	)		(1,343	)		(574	)
Net income (loss)		9,357			3,148			(11,427	)
Less net (income) loss attributable to noncontrolling interests in:
Consolidated joint ventures and funds		(7,969	)		(9,004	)		(668	)
Operating Partnership		(272	)		1,147			2,364
Net income (loss) attributable to common stockholders	$	1,116		$	(4,709	)	$	(9,731	)
Weighted average common shares outstanding
Basic		212,106,718			212,106,718			212,106,718
Diluted		212,108,079			212,106,718			212,106,718
Net income (loss) per share attributable to common stockholders
Basic	$	0.01		$	(0.02	)	$	(0.05	)
Diluted	$	0.01		$	(0.02	)	$	(0.05	)

⁽¹⁾  Includes $1,940 of loss in the quarter ended September 30, 2015 and income of $362 and $733 in the quarters ended June 30, 2015 and March 31, 2015, respectively, from the mark-to-market of investments in our deferred compensation plan for which there is a corresponding decrease (increase) in interest and other income, net. The quarter ended March 31, 2015 also includes $3,315 of severance costs.

- 8 -

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

	Quarter Ended
	September 30, 2015			June 30, 2015			March 31, 2015
Reconciliation of net income (loss) to FFO and Core FFO:
Net income (loss)	$	9,357		$	3,148		$	(11,427	)
Real estate depreciation and amortization		70,654			79,421			73,583
Pro rata share of real estate depreciation and amortization of unconsolidated joint ventures		1,512			1,530			1,476
FFO (1)		81,523			84,099			63,632
Less FFO attributable to noncontrolling interests in consolidated joint ventures and funds		(17,094	)		(18,614	)		(9,789	)
FFO attributable to Paramount Group Operating Partnership		64,429			65,485			53,843
Less FFO attributable to noncontrolling interests in Operating Partnership		(12,619	)		(12,822	)		(10,526	)
FFO attributable to common stockholders (1)	$	51,810		$	52,663		$	43,317
Per diluted share	$	0.24		$	0.25		$	0.20
FFO	$	81,523		$	84,099		$	63,632
Non-core (income) expense:
Transfer taxes due in connection with the sale of shares by a former joint venture partner		—			5,872			—
Acquisition and transaction related costs		485			2,336			1,139
Predecessor income tax true-up		—			721			—
Severance costs		—			—			3,315
Unrealized gains on interest rate swaps		(15,772	)		(21,747	)		(11,978	)
Pro rata share of unrealized gain on interest rate swap of unconsolidated joint venture		(37	)		(624	)		(386	)
Core FFO (1)		66,199			70,657			55,722
Less Core FFO attributable to noncontrolling interests in consolidated joint ventures and funds		(13,560	)		(13,065	)		(7,291	)
Core FFO attributable to Paramount Group Operating Partnership		52,639			57,592			48,431
Less Core FFO attributable to noncontrolling interests in Operating Partnership		(10,309	)		(11,277	)		(9,468	)
Core FFO attributable to common stockholders (1)	$	42,330		$	46,315		$	38,963
Per diluted share	$	0.20		$	0.22		$	0.18
Reconciliation of weighted average shares outstanding:
Weighted average shares outstanding		212,106,718			212,106,718			212,106,718
Effect of dilutive securities		1,361			5,004			11,928
Denominator for FFO per diluted share		212,108,079			212,111,722			212,118,646

⁽¹⁾ See page 27 for our definition of this measure.

- 9 -

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

	Quarter Ended
	September 30, 2015			June 30, 2015			March 31, 2015
Reconciliation of Core FFO to FAD
Core FFO	$	66,199		$	70,657		$	55,722
Add:
Amortization of stock-based compensation expense		1,613			1,370			1,174
Amortization of deferred financing costs		635			688			584
Less:
Recurring tenant improvements, leasing commissions and other capital expenditures		(12,703	)		(16,882	)		(18,093	)
Straight-line rent adjustments		(17,817	)		(16,091	)		(15,951	)
Unrealized gains on real estate fund investments		(1,830	)		(11,264	)		(873	)
Amortization of below-market leases, net		(1,477	)		(872	)		(890	)
Pro rata share of straight-line rent adjustments of unconsolidated joint ventures		146			48			41
FAD (1)		34,766			27,654			21,714
Less FAD attributable to noncontrolling interests in consolidated joint ventures and funds		(6,849	)		(751	)		(768	)
FAD attributable to Paramount Group Operating Partnership		27,917			26,903			20,946
Less FAD attributable to noncontrolling interests in Operating Partnership		(5,468	)		(5,268	)		(4,094	)
FAD attributable to common stockholders (1)	$	22,449		$	21,635		$	16,852
FAD payout ratio (1)		89.8	%		93.1	%		119.6	%

⁽¹⁾ See page 27 for our definition of this measure.

- 10 -

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

	Quarter Ended
	September 30, 2015			June 30, 2015			March 31, 2015
Reconciliation of net income (loss) to NOI and Cash NOI:
Net income (loss)	$	9,357		$	3,148		$	(11,427	)
Add:
Depreciation and amortization		70,654			79,421			73,583
General and administrative expenses		6,666			9,133			12,613
Interest and debt expense		42,821			42,236			41,888
Transfer taxes due in connection with the sale of shares by a former joint venture partner		—			5,872			—
Acquisition and transaction related costs		485			2,336			1,139
Income tax expense		789			1,343			574
NOI from unconsolidated joint ventures		4,303			4,278			3,781
Less:
Income from real estate fund investments		(10,933	)		(14,072	)		(5,221	)
Income from unconsolidated joint ventures		(1,458	)		(2,011	)		(975	)
Fee income		(2,085	)		(1,780	)		(1,535	)
Unrealized gains on interest rate swaps		(15,772	)		(21,747	)		(11,978	)
Interest and other loss (income), net		1,763			(512	)		(854	)
NOI (1)		106,590			107,645			101,588
Less NOI attributable to noncontrolling interests in consolidated joint ventures		(15,162	)		(15,193	)		(13,619	)
Pro rata share of NOI (1)	$	91,428		$	92,452		$	87,969
NOI	$	106,590		$	107,645		$	101,588
Less:
Straight-line rent adjustments		(17,817	)		(16,091	)		(15,951	)
Amortization of below-market leases, net		(1,477	)		(872	)		(890	)
Pro rata share of straight-line rent adjustments of unconsolidated joint ventures		146			48			41
Cash NOI (1)		87,442			90,730			84,788
Less Cash NOI attributable to noncontrolling interests in consolidated joint ventures		(10,219	)		(10,273	)		(9,447	)
Pro rata share of Cash NOI (1)	$	77,223		$	80,457		$	75,341

⁽¹⁾  See page 27 for our definition of this measure.

- 11 -

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

	Quarter Ended
	September 30, 2015			June 30, 2015			March 31, 2015
Reconciliation of net income (loss) to EBITDA and Adjusted EBITDA:
Net income (loss)	$	9,357		$	3,148		$	(11,427	)
Add:
Depreciation and amortization		70,654			79,421			73,583
Interest and debt expense		42,821			42,236			41,888
Income tax expense		789			1,343			574
Pro rata share of above adjustments of unconsolidated joint ventures		2,885			2,895			3,190
EBITDA (1)		126,506			129,043			107,808
Less EBITDA attributable to noncontrolling interests in consolidated joint ventures and funds		(27,466	)		(28,071	)		(19,323	)
Pro rata share of EBITDA (1)	$	99,040		$	100,972		$	88,485
EBITDA	$	126,506		$	129,043		$	107,808
Add:
Transfer taxes due in connection with the sale of shares by a former joint venture partner		—			5,872			—
Acquisition and transaction related costs		485			2,336			1,139
Severance costs		—			—			3,315
Less:
Unrealized gains on interest rate swaps		(15,772	)		(21,747	)		(11,978	)
EBITDA from real estate fund investments		(9,730	)		(15,124	)		(4,010	)
Pro rata share of unrealized gain on interest rate swap of unconsolidated joint venture		(37	)		(624	)		(386	)
Adjusted EBITDA (1)		101,452			99,756			95,888
Less Adjusted EBITDA attributable to noncontrolling interests in consolidated joint ventures		(14,934	)		(14,936	)		(13,411	)
Pro rata share of Adjusted EBITDA (1)	$	86,518		$	84,820		$	82,477

⁽¹⁾ See page 27 for our definition of this measure.

- 12 -

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

	As of September 30, 2015
	Consolidated Properties
	31 West 52nd Street (1)		One Market Plaza		Real Estate Funds (2)		Total
Ownership %	64.2%		49.0%		Various
ASSETS:
Rental property, net	$	815,197	$	1,277,999	$	65,860	$	2,159,056
Real estate fund investments		—		—		336,393		336,393
Cash and cash equivalents		5,673		9,675		98,989		114,337
Restricted cash		17,509		23,589		11,290		52,388
Deferred rent receivable		3,137		13,757		—		16,894
Accounts and other receivables, net		793		207		377		1,377
Deferred charges, net		—		1,461		—		1,461
Intangible assets, net		80,580		76,917		—		157,497
Other assets		3,955		994		—		4,949
Total Assets	$	926,844	$	1,404,599	$	512,909	$	2,844,352
LIABILITIES:
Mortgages and notes payable	$	413,490	$	856,183	$	—	$	1,269,673
Loans payable to noncontrolling interests		—		—		44,822		44,822
Accounts payable and accrued expenses		4,234		32,740		459		37,433
Interest rate swap liabilities		22,114		68,047		—		90,161
Intangible liabilities, net		41,762		69,741		—		111,503
Other liabilities		188		2,657		544		3,389
Total Liabilities		481,788		1,029,368		45,825		1,556,981
EQUITY:
Paramount Group, Inc. stockholders’ equity		285,764		183,927		36,337		506,028
Noncontrolling interests in consolidated joint ventures and funds		159,292		191,304		430,747		781,343
Total Equity		445,056		375,231		467,084		1,287,371
TOTAL LIABILITIES AND EQUITY	$	926,844	$	1,404,599	$	512,909	$	2,844,352

⁽¹⁾  On October 1, 2015, we acquired the remaining 35.8% ownership interest in this joint venture.

⁽²⁾  See page 21 for details of our ownership interest in the Funds and the Funds’ ownership interest in the underlying investments.

- 13 -

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

	Quarter Ended September 30, 2015
	Consolidated Properties
	31 West 52nd Street (1)			One Market Plaza			Real Estate Funds (2)			Total
Total revenues	$	17,944		$	29,156		$	863		$	47,963
Total operating expenses		6,757			7,267			307			14,331
Net operating income		11,187			21,889			556			33,632
Depreciation and amortization expense		(6,540	)		(12,862	)		(259	)		(19,661	)
Income from real estate fund investments		—			—			10,933			10,933
Unrealized gains on interest rate swaps		1,899			5,598			—			7,497
Interest and other income, net		16			3			1			20
Interest and debt expense		(5,339	)		(14,974	)		(840	)		(21,153	)
Net income before income taxes		1,223			(346	)		10,391			11,268
Income tax benefit		—			30			—			30
Net income (loss)	$	1,223		$	(316	)	$	10,391		$	11,298
Paramount Group, Inc.’s pro rata share
Ownership %	64.2%			49.0%			Various			Total
Net income (loss)	$	786		$	(154	)	$	520		$	1,152
Add: Management fee income		132			111			1,617			1,860
Add: Carried interest		—			—			317			317
Net income attributable to Paramount Group, Inc.		918			(43	)		2,454			3,329
Add: Real estate depreciation and amortization		4,199			6,302			35			10,536
FFO (3)		5,117			6,259			2,489			13,865
Less: Unrealized gains on interest rate swaps		(1,220	)		(2,743	)		—			(3,963	)
Core FFO (3)	$	3,897		$	3,516		$	2,489		$	9,902
Noncontrolling Interests’ pro rata share
Ownership %	35.8%			51.0%			Various			Total
Net income	$	437		$	(162	)	$	9,871		$	10,146
Less: Management fee expense		(132	)		(111	)		(1,617	)		(1,860	)
Less: Carried interest		—			—			(317	)		(317	)
Net income attributable to noncontrolling interests		305			(273	)		7,937			7,969
Add: Real estate depreciation and amortization		2,341			6,560			224			9,125
FFO (3)		2,646			6,287			8,161			17,094
Less: Unrealized gains on interest rate swaps		(679	)		(2,855	)		—			(3,534	)
Core FFO (3)	$	1,967		$	3,432		$	8,161		$	13,560

⁽¹⁾  On October 1, 2015, we acquired the remaining 35.8% ownership interest in this joint venture.

⁽²⁾  See page 21 for details of our ownership interest in the Funds and the Funds’ ownership interest in the underlying investments.

⁽³⁾  See page 27 for our definition of this measure.

- 14 -

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

	As of September 30, 2015
	712 Fifth Avenue			Oder-Center, Germany			Total
Ownership %	50.0%			9.5%
ASSETS:
Rental property, net	$	214,741		$	6,680		$	221,421
Cash and cash equivalents		15,098			1,152			16,250
Restricted cash		323			—			323
Deferred rent receivable		12,830			—			12,830
Accounts and other receivables, net		156			—			156
Deferred charges, net		10,612			—			10,612
Other assets		3,399			179			3,578
Total Assets	$	257,159		$	8,011		$	265,170
LIABILITIES:
Mortgages and notes payable	$	246,500		$	24,273		$	270,773
Accounts payable and accrued expenses		4,108			157			4,265
Interest rate swap liabilities		11,275			—			11,275
Other liabilities		1,460			137			1,597
Total Liabilities		263,343			24,567			287,910
Total Equity		(6,184	)		(16,556	)		(22,740	)
TOTAL LIABILITIES AND EQUITY	$	257,159		$	8,011		$	265,170

- 15 -

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

	Quarter Ended September 30, 2015
	712			Oder-Center,
	Fifth Avenue			Germany			Total
Total revenues	$	13,921		$	1,056		$	14,977
Total operating expenses		5,500			140			5,640
Net operating income		8,421			916			9,337
Depreciation and amortization expense		(2,945	)		(96	)		(3,041	)
Unrealized gains on interest rate swaps		74			—			74
Interest and other income, net		3			—			3
Interest and debt expense		(2,687	)		(283	)		(2,970	)
Net income before income taxes		2,866			537			3,403
Income tax expense		—			(2	)		(2	)
Net income	$	2,866		$	535		$	3,401
Paramount Group, Inc.’s pro rata share Ownership %	50.0%			9.5%			Total
Net income	$	1,433		$	51		$	1,484
Less: Step-up basis adjustment		—			(26	)		(26	)
Net income attributable to Paramount Group, Inc.		1,433			25			1,458
Add: Real estate depreciation and amortization		1,472			40			1,512
FFO (1)		2,905			65			2,970
Less: Unrealized gains on interest rate swaps		(37	)		—			(37	)
Core FFO (1)	$	2,868		$	65		$	2,933
Joint Venture Partners’ pro rata share Ownership %	50.0%			90.5%			Total
Net income	$	1,433		$	484		$	1,917
Add: Real estate depreciation and amortization		1,472			89			1,561
FFO (1)		2,905			573			3,478
Less: Unrealized gains on interest rate swaps		(37	)		—			(37	)
Core FFO (1)	$	2,868		$	573		$	3,441

⁽¹⁾  See page 27 for our definition of this measure.

- 16 -

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

					As of September 30, 2015
Debt:
Consolidated debt:
Mortgages and notes payable					$	2,853,735
$1.0 billion credit facility						—
						2,853,735
Less:
Noncontrolling interests’ share of consolidated debt (One Market Plaza and 31 West 52nd Street)						(584,682	)
Add:
Pro rata share of unconsolidated joint venture debt (712 Fifth Avenue and Oder-Center, Germany)						125,556
Total debt						2,394,609
	Shares / Units Outstanding		Share Price at September 30, 2015
Equity:
Common stock		212,111,937	$	16.80		3,563,481
Operating Partnership units		51,660,088		16.80		867,889
		263,772,025		16.80		4,431,370
Total Market Capitalization					$	6,825,979

- 17 -

	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			6.10	%	$	154,160			1.62	%
31 West 52nd Street		413,490			5.00	%		337,500			5.74	%		75,990			1.70	%
900 Third Avenue		274,337			5.10	%		255,000			5.35	%		19,337			1.78	%
Waterview		210,000			5.76	%		210,000			5.76	%		—			—
1899 Pennsylvania Avenue		89,465			4.88	%		89,465			4.88	%		—			—
Liberty Place		84,000			4.50	%		84,000			4.50	%		—			—
One Market Plaza		856,183			6.14	%		856,183			6.14	%		—			—
Total consolidated debt		2,853,735			5.50	%		2,604,248			5.87	%		249,487			1.65	%
Noncontrolling interests’ share		(584,682	)					(557,478	)					(27,204	)
Pro rata share of consolidated debt	$	2,269,053			5.41	%	$	2,046,770			5.82	%	$	222,283			1.65	%
Unconsolidated Joint Venture Debt:
712 Fifth Avenue	$	246,500			4.10	%	$	135,000			5.78	%	$	111,500			2.07	%
Oder-Center, Germany		24,273			4.62	%		24,273			4.62	%		—			0.00	%
Total unconsolidated debt		270,773			4.15	%		159,273			5.60	%		111,500			2.07	%
Joint venture partners’ share		(145,217	)					(89,467	)					(55,750	)
Pro rata share of unconsolidated debt	$	125,556			4.11	%	$	69,806			5.74	%	$	55,750			2.07	%
Pro Rata Share of Total Debt	$	2,394,609			5.35	%	$	2,116,576			5.82	%	$	278,033			1.73	%

	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		2.4x
Unsecured Debt / Unencumbered Assets	Less than 60%		14.1	%
Unencumbered Interest Coverage	Greater than 1.75x		12.0x

	Amount		%
Debt Composition:
Fixed rate debt:
Pro rata consolidated fixed rate debt	$	2,046,770
Pro rata unconsolidated fixed rate debt		69,806
Total fixed rate debt		2,116,576		88.4	%
Variable rate debt:
Pro rata consolidated variable rate debt		222,283
Pro rata unconsolidated variable rate debt		55,750
Total variable rate debt		278,033		11.6	%
Pro Rata Share of Total Debt	$	2,394,609		100.0	%

⁽¹⁾  This section presents ratios as of September 30, 2015 in accordance with the terms of the Company’s 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.

- 18 -

	DEBT MATURITIES
(unaudited and in thousands)

	2015		2016			2017			2018			2019			Thereafter			Total
Consolidated Debt:
1633 Broadway	$	—	$	926,260		$	—		$	—		$	—		$	—		$	926,260
31 West 52nd Street		—		—			413,490			—			—			—			413,490
900 Third Avenue		—		—			274,337			—			—			—			274,337
Waterview		—		—			210,000			—			—			—			210,000
1899 Pennsylvania Avenue		—		—			—			—			—			89,465			89,465
Liberty Place		—		—			—			84,000			—			—			84,000
One Market Plaza		—		—			—			—			856,183			—			856,183
Total consolidated debt		—		926,260			897,827			84,000			856,183			89,465			2,853,735
Noncontrolling interests’ share		—		—			(148,029	)		—			(436,653	)		—			(584,682	)
Pro rata share of consolidated debt	$	—	$	926,260		$	749,798		$	84,000		$	419,530		$	89,465		$	2,269,053
Unconsolidated Debt:
712 Fifth Avenue	$	—	$	—		$	—		$	246,500		$	—		$	—		$	246,500
Oder-Center, Germany		—		—			—			—			—			24,273			24,273
Total unconsolidated debt		—		—			—			246,500			—			24,273			270,773
Joint venture partners’ share		—		—			—			(123,250	)		—			(21,967	)		(145,217	)
Pro rata share of unconsolidated debt	$	—	$	—		$	—		$	123,250		$	—		$	2,306		$	125,556
Pro rata share of debt	$	—	$	926,260		$	749,798		$	207,250		$	419,530		$	91,771			2,394,609
Weighted average rate		—		5.35	%		5.25	%		4.26	%		6.14	%		4.87	%		5.35	%
% of Debt Maturing		—		38.7	%		31.3	%		8.7	%		17.5	%		3.8	%		100.0	%

- 19 -

	PORTFOLIO SUMMARY
(unaudited)

Property	Submarket	% Ownership			Square Feet (1)		% Occupied (2)			% Leased (2)			Annualized Rent (2)
													Amount		Per Square Foot (3)
As of September 30, 2015
New York:
1633 Broadway	West Side		100.0	%		2,643,065		87.4	%		87.4	%	$	145,928,000	$	68.79
1301 Avenue of the Americas	Sixth Ave / Rock Center		100.0	%		1,767,992		85.5	%		91.5	%		111,925,000		74.90
1325 Avenue of the Americas	Sixth Ave / Rock Center		100.0	%		814,892		91.1	%		94.2	%		50,089,000		70.13
31 West 52nd Street	Sixth Ave / Rock Center		64.2	%		786,647		100.0	%		100.0	%		60,298,000		79.09
900 Third Avenue	East Side		100.0	%		596,270		97.0	%		97.8	%		41,078,000		71.77
712 Fifth Avenue	Madison/Fifth		50.0	%		543,341		98.5	%		98.5	%		55,748,000		104.69
Subtotal / Weighted Average						7,152,207		90.4	%		92.3	%		465,066,000		75.16
Washington, D.C.:
Waterview	Rosslyn, VA		100.0	%		647,243		98.9	%		98.9	%		34,086,000		51.41
425 Eye Street	East End		100.0	%		380,090		88.9	%		96.5	%		15,045,000		45.79
2099 Pennsylvania Avenue	CBD		100.0	%		208,636		62.0	%		62.0	%		9,987,000		77.06
1899 Pennsylvania Avenue	CBD		100.0	%		192,481		88.8	%		88.8	%		13,452,000		79.73
Liberty Place	East End		100.0	%		174,205		80.1	%		80.1	%		10,852,000		76.50
Subtotal / Weighted Average						1,602,655		88.5	%		90.3	%		83,422,000		58.32
San Francisco:
One Market Plaza	South Financial District		49.0	%		1,611,125		96.7	%		98.4	%		96,983,000		63.35
Total / Weighted Average						10,365,987		91.1	%		92.9	%	$	645,471,000	$	70.58

⁽¹⁾ Represents the remeasured square feet, which includes an aggregate of 176,107 square feet of either REBNY or BOMA remeasurement adjustments that are not reflected in current leases.

⁽²⁾  See page 27 for our definition of this measure.

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

- 20 -

	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 September 30, 2015.

	% Ownership			60 Wall Street			One Market Plaza			50 Beale 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 September 30, 2015.

	Submarket	% Ownership			Square Feet		% Leased			Annualized Rent (2)
										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		98.6	%		33,805,000			51.68

Alternative Investment Funds:

The following is a summary of our ownership interest in the Alternative Investment Funds and the Funds’ underlying investments, as of September 30, 2015.

		%		Interest/				Investment
Fund	Investment Type	Ownership		Dividend Rate		Initial Maturity		Total		Our Share
Fund VIII	Mezzanine Loans		1.7%		6.0% - 8.3%		Oct-2019 - Jan-2022	$	86,813,000	$	1,493,000
PGRESS Funds	Preferred Equity Investments		4.9%		10.3%		Apr-2017 - Feb-2019		54,318,000		2,360,000

⁽¹⁾  Includes a 49.0% direct ownership interest held by us.

⁽²⁾ See page 27 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.

- 21 -

	TOP TENANTS AND INDUSTRY DIVERSIFICATION
(unaudited)

	Lease Expiration			Square Feet Occupied			% of Total Square Feet			Annualized Rent (1)				% of Annualized Rent
										Amount		Per Square Foot
Top 10 Tenants:
As of September 30, 2015
The Corporate Executive Board Company		Jan-2028			625,062			6.0	%	$	32,048,000	$	51.27		5.0	%
Barclays Capital, Inc.		Dec-2020			497,418			4.8	%		30,184,000		60.68		4.7	%
Allianz Global Investors, LP		Jan-2031	(2)		326,457	(2)		3.1	%		26,170,000		80.16		4.1	%
Clifford Chance LLP		Jun-2024			328,992			3.2	%		25,510,000		77.54		4.0	%
Credit Agricole Corporate & Investment Bank		Feb-2023			311,291			3.0	%		25,065,000		80.52		3.9	%
Commerzbank AG		May-2016			287,535			2.8	%		24,486,000		85.16		3.8	%
Kasowitz Benson Torres & Friedman, LLP		Mar-2037	(3)		302,213	(3)		2.9	%		18,896,000		62.53		2.9	%
Google		Apr-2025			267,274			2.6	%		16,942,000		63.39		2.6	%
Deloitte & Touche, LLP		Mar-2016			212,052			2.0	%		16,735,000		78.92		2.6	%
WMG Acquisition Corp. (Warner Music Group)		Jul-2029			293,487			2.8	%		16,313,000		55.58		2.5	%

	Square Feet Occupied		% of Occupied Square Feet			Annualized Rent		% of Annualized Rent
Industry Diversification:
As of September 30, 2015
Legal Services		1,870,087		20.2	%	$	136,823,000		21.2	%
Financial Services - Commercial and Investment Banking		1,735,145		18.8	%		125,718,000		19.5	%
Financial Services - All other		1,390,169		15.0	%		110,806,000		17.2	%
Technology and Media		1,368,688		14.8	%		86,539,000		13.4	%
Insurance		338,399		3.7	%		26,908,000		4.2	%
Retail		321,188		3.5	%		26,382,000		4.1	%
Accounting		275,263		3.0	%		20,718,000		3.2	%
Real Estate		252,680		2.7	%		18,340,000		2.8	%
Government		316,700		3.4	%		14,674,000		2.3	%
Other		1,374,124		14.9	%		78,563,000		12.1	%

⁽¹⁾  See page 27 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.

- 22 -

	LEASING ACTIVITY
(unaudited)

	Total			New York			Washington, D.C.			San Francisco
Quarter Ended September 30, 2015:
Total square feet leased		390,142			306,824			16,453			66,865
Pro rata share of total square feet leased:		333,516			284,299			16,453			32,764
Initial rent (1)	$	80.97		$	78.73		$	80.35		$	100.68
Weighted average lease term (years)		9.4			10.0			5.6			5.9
Tenant improvements and leasing commissions:
Per square foot	$	71.89		$	75.83		$	67.65		$	39.78
Per square foot per annum	$	7.66		$	7.58		$	12.13		$	6.69
Percentage of initial rent		9.5	%		9.6	%		15.1	%		6.6	%
Rent concessions:
Average free rent period (in months)		7.8			8.5			6.4			2.6
Average free rent period per annum (in months)		0.8			0.9			1.1			0.4
Second generation space: (1)
Square feet		325,217			281,525			16,453			27,239
Cash basis:
Initial rent (1)	$	80.61		$	78.71		$	80.35		$	100.46
Prior escalated rent	$	71.08		$	72.53		$	63.89		$	60.46
Percentage increase		13.4	%		8.5	%		25.8	%		66.2	%
GAAP basis:
Straight-line rent	$	77.43		$	75.88		$	73.22		$	95.99
Prior straight-line rent	$	71.15		$	72.98		$	57.75		$	60.29
Percentage increase		8.8	%		4.0	%		26.8	%		59.2	%

⁽¹⁾  See page 27 for our definition of this measure.

- 23 -

	LEASING ACTIVITY
(unaudited)

	Total			New York			Washington, D.C.			San Francisco
Nine Months Ended September 30, 2015:
Total square feet leased		745,942			596,310			49,633			99,999
Pro rata share of total square feet leased:		659,209			560,576			49,633			49,000
Initial rent (1)	$	77.36		$	77.92		$	56.58		$	92.08
Weighted average lease term (years)		11.0			11.3			11.1			6.7
Tenant improvements and leasing commissions:
Per square foot	$	83.70		$	86.22		$	92.63		$	45.91
Per square foot per annum	$	7.64		$	7.61		$	8.35		$	6.90
Percentage of initial rent		9.9	%		9.8	%		14.8	%		7.5	%
Rent concessions:
Average free rent period (in months)		9.3			9.9			10.3			2.1
Average free rent period per annum (in months)		0.8			0.9			0.9			0.3
Second generation space: (1)
Square feet		487,179			427,244			20,770			39,165
Cash basis:
Initial rent (1)	$	79.37		$	78.19		$	78.62		$	92.66
Prior escalated rent	$	69.54		$	70.66		$	64.86		$	59.87
Percentage increase		14.1	%		10.7	%		21.2	%		54.8	%
GAAP basis:
Straight-line rent	$	78.55		$	77.45		$	77.00		$	91.37
Prior straight-line rent	$	69.54		$	71.32		$	51.72		$	59.62
Percentage increase		13.0	%		8.6	%		48.9	%		53.3	%

⁽¹⁾  See page 27 for our definition of this measure.

- 24 -

	LEASE EXPIRATIONS
(unaudited)

Year of Lease Expiration (3)	Square Feet of Expiring Leases		Annualized Rent (1)				% of Annualized Rent
			Amount		Per Square Foot (2)
Month to Month		6,093	$	644,000	$	104.08		0.1	%
4Q 2015		130,145		8,306,000		63.78		1.3	%
1Q 2016		6,247		1,560,000		81.32		0.2	%
2Q 2016		448,264		38,015,000		84.50		5.8	%
3Q 2016		204,992		13,658,000		66.65		2.1	%
4Q 2016		172,002		11,553,000		67.39		1.8	%
Total 2016		831,505		64,786,000		76.55		9.9	%
2017		547,751		40,145,000		73.93		6.1	%
2018		323,709		25,816,000		79.62		3.9	%
2019		531,766		41,590,000		78.65		6.4	%
2020		485,687		34,107,000		78.37		5.2	%
2021		1,460,359		85,919,000		60.09		13.1	%
2022		298,411		18,785,000		77.50		2.9	%
2023		666,507		53,127,000		80.31		8.1	%
2024		682,055		53,589,000		79.02		8.2	%
Thereafter		3,417,566		227,655,000		66.32		34.8	%

⁽¹⁾ See page 27 for our definition of this measure.

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

⁽³⁾ Leases that expire on the last day of the quarter are treated as occupied and are reflected as expiring space in the following quarters.

- 25 -

	CAPITAL EXPENDITURES - CASH BASIS
(unaudited and in thousands)

	Quarter Ended
	September 30, 2015		June 30, 2015		March 31, 2015
Capital expenditures to maintain assets:
Recurring (1)	$	3,101	$	273	$	3,754
Non-recurring (1)		—		—		—
Total capital expenditures to maintain assets	$	3,101	$	273	$	3,754
Tenant improvements:
Recurring (1)	$	5,298	$	13,254	$	10,795
Non-recurring (1)		10,555		1,431		1,693
Total tenant improvements	$	15,853	$	14,685	$	12,488
Leasing commissions:
Recurring (1)	$	4,304	$	3,355	$	3,544
Non-recurring (1)		1,124		1,678		2,587
Total leasing commissions	$	5,428	$	5,033	$	6,131
Total capital expenditures, tenant improvements and leasing commissions:
Total recurring (1)	$	12,703	$	16,882	$	18,093
Total non-recurring (1)		11,679		3,109		4,280
Total capital expenditures, tenant improvements and leasing commissions	$	24,382	$	19,991	$	22,373
Development expenditures (1)
One Market Plaza - Lobby and Retail repositioning (2)	$	3,421	$	3,866	$	5,301
1633 Broadway - Plaza and Retail development (3)		2,873		879		93
Other		679		576		—
Total Development expenditures	$	6,973	$	5,321	$	5,394

⁽¹⁾  See page 27 for our definition of this measure.

⁽²⁾  Of the $25,000 budget, $16,265 has been expended as of September 30, 2015.

⁽³⁾  Of the $15,000 budget, $3,845 has been expended as of September 30, 2015.

- 26 -

DEFINITIONS

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) is calculated by adjusting EBITDA for certain other items, including acquisition and transaction related costs and unrealized gains or losses on interest rate swaps, including our share of such adjustments of unconsolidated joint ventures.

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

Capital Expenditures consist of expenditures to maintain assets, tenant improvement allowances and leasing commissions. Recurring Capital Expenditures include capital expenditures to maintain current revenues and tenant improvements and leasing commissions related to space leased that has not been vacant for more than twelve months. Nonrecurring Capital Expenditures include capital expenditures completed in the year of acquisition and the following two years that were planned at the time of acquisition, as well as tenant improvements and leasing commissions on space leased that has been vacant for more than twelve months. Development Expenditures consist of hard and soft costs related to the development of a property in getting it ready for its intended use.

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

Core Funds from Operations (“Core FFO”) is calculated by adjusting FFO for certain other items, including acquisition and transaction related costs and unrealized gains or losses on interest rate swaps, including our share of such adjustments of unconsolidated joint ventures.

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 (iii) unrealized gains on real estate fund investments and (iv) amortization of above and below-market leases, net, plus (v) amortization of stock-based compensation expense and (vi) amortization of deferred financing costs.

Funds from Operations (“FFO”) is calculated in accordance with the definition adopted by the 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 and transaction related costs and (v) income tax expense, less (vi) fee income (vii) unrealized gains or losses on interest rate swaps (viii) interest and other income and (ix) the gain on consolidation of a consolidated joint venture, 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.

Second Generation Space relates to space leased that has not been vacant for more than twelve months.

- 27 -