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 5, 2016

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 5, 2016, Paramount Group, Inc. (the “Company”) issued a press release announcing its financial results for the first quarter ended March 31, 2016. 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 Friday, May 6, 2016, to discuss first quarter 2016 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 May 13, 2016, by dialing 1-877-870-5176 (domestic) and 1-858-384-5517 (international) and entering the passcode 13634693.

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 $49.0 million, or $0.23 per diluted share, for the quarter ended March 31, 2016. Net loss attributable to common stockholders, which is the most directly comparable GAAP financial measure, was $6.5 million, or $0.03 per diluted share, for the quarter ended March 31, 2016.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits:

Exhibit Number	Description
99.1	Press release dated May 5, 2016 and entitled “Paramount Announces First Quarter 2016 Results”
99.2	Supplemental information entitled “Paramount Group, Inc. Supplemental Operating and Financial Data for the Quarter Ended March 31, 2016”

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/ Wilbur Paes
Name:	Wilbur Paes
Title:	Executive Vice President, Chief Financial Officer and Treasurer

Date: May 5, 2016

EX-99.1

Exhibit 99.1

Paramount Announces First Quarter 2016 Results

– Reports Core FFO of $0.23 per Diluted Share –

– Reiterates Guidance for Full Year 2016 –

NEW YORK—May 5, 2016 – Paramount Group, Inc. (NYSE: PGRE) (“Paramount” or the “Company”) filed its Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 today and reported results for the quarter ended March 31, 2016.

First Quarter Highlights:

• Reported Core Funds from Operations (“Core FFO”) attributable to common stockholders of $49.0 million, or $0.23 per diluted share for the quarter ended March 31, 2016, compared to $39.0 million, or $0.18 per diluted share for the quarter ended March 31, 2015.

• Leased 154,951 square feet at a weighted average initial rent of $78.68 per square foot, bringing portfolio leased occupancy to 95.6% at March 31, 2016, up 30 basis points from December 31, 2015.

• On January 1, 2016, the Company adopted the accounting provisions of the new consolidation guidance that resulted in the deconsolidation of all of the Company’s real estate fund investments that were previously accounted for at fair value, with the exception of its Residential Development Fund, which was, and continues to be, consolidated at historical cost.

• On February 11, 2016, the Company entered into a lease termination agreement with a tenant at 1633 Broadway for approximately 52,500 square feet that was scheduled to expire in August 2024. In connection therewith, the Company recognized net income of $0.3 million, comprised of (i) a lease termination fee of $10.9 million, which was partially offset by (ii) a $10.1 million non-cash write-off primarily related to the above-market lease asset and (iii) a $0.5 million write-off for tenant receivables. On March 3, 2016, the Company re-leased this space for an 11 year term at an initial cash rent of $80.00 per square foot.

• On March 15, 2016, the Company’s Board of Directors declared a regular quarterly cash dividend of $0.095 per share for the quarter ended March 31, 2016, which was paid on April 15, 2016.

Transactions Subsequent to the First Quarter:

• On April 28, 2016, the Company completed the final closing of Fund VIII (the Company’s debt fund) bringing total capital commitments to $775.2 million.

• On May 3, 2016, the Company completed a $500.0 million refinancing of 31 West 52^nd Street, a 786,647 square foot Class A office building in Manhattan. The new 10-year loan is interest only at a fixed rate of 3.80%. The Company realized net proceeds of approximately $65.0 million after the repayment of the existing loan, swap breakage costs and closing costs. The property was previously encumbered by a $413.5 million loan that was scheduled to mature in December 2017 and had a weighted average interest rate of 4.23%.

1

Financial Results

Net loss attributable to common stockholders was $6.5 million, or $0.03 per diluted share, for the quarter ended March 31, 2016, compared to $9.7 million, or $0.05 per diluted share, for the quarter ended March 31, 2015.

FFO attributable to common stockholders was $49.2 million, or $0.23 per diluted share, for the quarter ended March 31, 2016, compared to $43.3 million, or $0.20 per diluted share, for the quarter ended March 31, 2015. FFO attributable to common stockholders for the quarters ended March 31, 2016 and 2015 includes the impact of (i) unrealized gain on interest rate swaps, including the Company’s pro rata share of such gains of an unconsolidated joint venture, (ii) severance costs and (iii) acquisition and transaction related costs. The aggregate of these items, net of amounts attributable to noncontrolling interests, increased FFO attributable to common stockholders for the quarters ended March 31, 2016 and 2015 by $0.2 million and $4.3 million, or $0.00 and $0.02 per diluted share, respectively.

Core FFO attributable to common stockholders, which excludes the impact of these items, was $49.0 million, or $0.23 per diluted share, for the quarter ended March 31, 2016, compared to $39.0 million, or $0.18 per diluted share for the quarter ended March 31, 2015.

Portfolio Operations

During the first quarter, the Company leased 154,951 square feet at a weighted average initial rent of $78.68 per square foot. This leasing activity, offset by lease expirations during the quarter, increased the portfolio wide leased occupancy by 30 basis points from 95.3% at December 31, 2015 to 95.6% at March 31, 2016. Of the 154,951 square feet leased in the first quarter, 100,343 square feet represents second generation space (space that has been vacant for less than twelve months) for which the Company achieved a positive mark-to-market of 12.2% on a GAAP basis and a negative mark-to-market of 1.3% on a cash basis. The weighted average lease term for leases signed during the first quarter was 7.7 years and weighted average tenant improvements and leasing commissions on these leases were $6.83 per square foot per annum, or 8.7% of initial rent.

The first quarter mark-to-market includes the effect of the termination of the aforementioned 52,500 square foot above-market lease at 1633 Broadway that was released shortly thereafter at market rates. Excluding the impact of this lease, GAAP and cash basis mark-to-markets were positive 30.0% and 26.8%, respectively.

Guidance

Based on the Company’s performance for the quarter ended March 31, 2016 and its outlook for the remainder of 2016, the Company is reiterating its Estimated Core FFO Guidance of $0.80 to $0.84 per diluted share for 2016.

2

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, severance 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 March 31, 2016, which is available on our website.    

3

Investor Conference Call and Webcast

The Company will host a webcast and conference call at 10:00 a.m. Eastern Time on Friday, May 6, 2016, to discuss first quarter 2016 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 May 13, 2016, by dialing 1-877-870-5176 (domestic) or 1-858-384-5517 (international) and entering the passcode 13634693.

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

4

Paramount Group, Inc.

Consolidated Balance Sheets

(Unaudited and in thousands)

	March 31, 2016			December 31, 2015
ASSETS:
Rental Property
Land	$	2,042,071		$	2,042,071
Buildings and improvements		5,630,764			5,610,046
		7,672,835			7,652,117
Accumulated depreciation and amortization		(283,379	)		(243,089	)
Rental Property, net		7,389,456			7,409,028
Cash and cash equivalents		178,721			143,884
Restricted cash		42,253			41,823
Real estate fund investments		—			416,438
Investments in unconsolidated real estate funds		26,880			—
Investments in unconsolidated joint ventures		7,121			7,102
Preferred equity investments		54,304			53,941
Marketable securities		21,398			21,521
Deferred rent receivable		97,660			77,792
Accounts and other receivables, net		12,092			10,844
Deferred charges, net		77,254			74,991
Intangible assets, net		464,227			511,207
Other assets		32,691			6,658
Total Assets	$	8,404,057		$	8,775,229
LIABILITIES:
Notes and mortgages payable, net	$	2,923,834		$	2,922,610
Revolving credit facility		40,000			20,000
Due to affiliates		27,299			27,299
Loans payable to noncontrolling interests		—			45,662
Accounts payable and accrued expenses		154,680			102,730
Dividends and distributions payable		25,147			25,067
Deferred income taxes		1,819			2,533
Interest rate swap liabilities		116,943			93,936
Intangible liabilities, net		167,069			179,741
Other liabilities		45,955			45,101
Total Liabilities		3,502,746			3,464,679
EQUITY:
Paramount Group, Inc. stockholders’ equity		3,725,824			3,761,017
Noncontrolling interests in:
Consolidated real estate funds		62,935			414,637
Consolidated joint ventures		238,101			236,849
Operating Partnership		874,451			898,047
Total Equity	$	4,901,311		$	5,310,550
Total Liabilities and Equity	$	8,404,057		$	8,775,229

5

Paramount Group, Inc.

Consolidated Statements of Income

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

	Quarter Ended
	March 31, 2016			March 31, 2015
REVENUES:
Property rentals	$	125,002		$	126,402
Straight-line rent adjustments		19,869			15,951
Amortization of (above) below-market leases, net		(3,619	)		890
Rental income		141,252			143,243
Tenant reimbursement income		10,789			13,488
Fee income		3,417			1,535
Other income		17,460			2,960
Total revenues		172,918			161,226
EXPENSES:
Operating		62,945			61,884
Depreciation and amortization		74,812			73,583
General and administrative		13,961			12,613
Acquisition and transaction related costs		935			1,139
Total expenses		152,653			149,219
Operating income		20,265			12,007
Income from real estate fund investments		—			5,221
Loss from unconsolidated real estate fund		(326	)		—
Income from unconsolidated joint ventures		1,496			975
Interest and other income, net		1,700			854
Interest and debt expense		(37,119	)		(41,888	)
Unrealized gain on interest rate swaps		6,860			11,978
Net loss before income taxes		(7,124	)		(10,853	)
Income tax expense		(363	)		(574	)
Net loss		(7,487	)		(11,427	)
Less net loss attributable to noncontrolling interests in:
Consolidated real estate funds		674			(2,209	)
Consolidated joint ventures		(1,252	)		1,541
Operating Partnership		1,571			2,364
Net loss attributable to common stockholders	$	(6,494	)	$	(9,731	)
Net loss per share attributable to common stockholders:
Basic	$	(0.03	)	$	(0.05	)
Diluted	$	(0.03	)	$	(0.05	)
Weighted average common shares outstanding:
Basic		212,403,593			212,106,718
Diluted		212,403,593			212,106,718

6

Paramount Group, Inc.

Reconciliation of Net Loss to Funds from Operations

and Core Funds from Operations

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

	Quarter Ended
	March 31, 2016			March 31, 2015
Reconciliation of net loss to FFO and Core FFO:
Net loss	$	(7,487	)	$	(11,427	)
Real estate depreciation and amortization (including pro rata share unconsolidated joint ventures)		76,351			75,059
FFO		68,864			63,632
Less FFO attributable to noncontrolling interests in:
Consolidated real estate funds		448			(2,420	)
Consolidated joint ventures		(8,147	)		(7,369	)
FFO attributable to Paramount Group Operating Partnership		61,165			53,843
Less FFO attributable to noncontrolling interests in Operating Partnership		(11,917	)		(10,526	)
FFO attributable to common stockholders	$	49,248		$	43,317
Per diluted share	$	0.23		$	0.20
FFO	$	68,864		$	63,632
Non-core (income) expense:
Acquisition and transaction related costs		935			1,139
Severance costs		2,874			3,315
Unrealized gains on interest rate swaps (including pro rata share of unconsolidated joint ventures)		(6,860	)		(12,364	)
Core FFO		65,813			55,722
Less Core FFO attributable to noncontrolling interests in:
Consolidated real estate funds		448			(2,420	)
Consolidated joint ventures		(5,414	)		(4,871	)
Core FFO attributable to Paramount Group Operating Partnership		60,847			48,431
Less Core FFO attributable to noncontrolling interests in Operating Partnership		(11,855	)		(9,468	)
Core FFO attributable to common stockholders	$	48,992		$	38,963
Per diluted share	$	0.23		$	0.18
Reconciliation of weighted average shares outstanding:
Weighted average shares outstanding		212,403,593			212,106,718
Effect of dilutive securities		4,366			11,928
Denominator for FFO per diluted share		212,407,959			212,118,646

7

EX-99.2

Exhibit 99.2

SUPPLEMENTAL OPERATING AND FINANCIAL DATA

FOR THE THREE MONTHS ENDED MARCH 31, 2016

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.

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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 Statements of Income	8
Select Income Statement Data	9
Funds From Operations (“FFO”)	10
Funds Available for Distribution (“FAD”)	11
Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”)	12
Net Operating Income (“NOI”)	13
NOI - By Segment	14
Same Store Results - By Segment	15-16
Consolidated Joint Ventures and Funds	17-18
Unconsolidated Joint Ventures	19-20
Unconsolidated Funds Summary	21
Capital Structure	22
Debt Analysis	23
Debt Maturities	24
Selected Property Data
Portfolio Summary	25
Top Tenants and Industry Diversification	26
Leasing Activity	27
Lease Expirations	28-31
Capital Expenditures - Cash Basis	32-36
Definitions	37-38

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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, 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
Wilbur Paes	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
BOARD OF DIRECTORS
Albert Behler	Director, Chairman of the Board
Thomas Armbrust	Director
Martin Bussmann	Director
Dan Emmett	Director, Chair of Audit Committee
Lizanne Galbreath	Director, Chair of Compensation Committee
Karin Klein	Director
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	Thomas Lesnick	Vin Chao	Steve Sakwa
Bank of America Merrill Lynch	Capital One Securities, Inc.	Deutsche Bank	Evercore ISI
(646) 855-5808	(571) 633-8191	(212) 250-6799	(212) 446-9462
Brad Burke	Jed Reagan	Richard Anderson	Sumit Sharma
Goldman Sachs	Green Street Advisors	Mizuho Securities USA Inc.	Morgan Stanley
(917) 343-2082	(949) 640-8780	(212) 205-8445	(212) 761-7567
Ross Nussbaum	Blaine Heck
UBS	Wells Fargo
(212) 713-2484	(443) 263-6529

⁽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 amounts)

	Three Months Ended
SELECTED FINANCIAL DATA	March 31, 2016			March 31, 2015			December 31, 2015
Total revenues	$	172,918		$	161,226		$	170,528
Pro rata share of NOI (1)	$	100,165		$	87,969		$	96,812
Pro rata share of Cash NOI (1)	$	87,239		$	75,341		$	75,320
Net (loss) income attributable to common stockholders	$	(6,494	)	$	(9,731	)	$	8,905
Per share—basic and diluted	$	(0.03	)	$	(0.05	)	$	0.04
FFO attributable to common stockholders (1)	$	49,248		$	43,317		$	61,559
Per share—diluted	$	0.23		$	0.20		$	0.29
FFO payout ratio (1)		41.0	%		46.5	%		32.7	%
Core FFO attributable to common stockholders (1)	$	48,992		$	38,963		$	45,188
Per share—diluted	$	0.23		$	0.18		$	0.21
Core FFO payout ratio (1)		41.2	%		51.7	%		44.6	%
FAD attributable to common stockholders (1)	$	25,802		$	16,852		$	(404	)
FAD payout ratio (1)		78.2	%		119.6	%		n/a
COMMON SHARE DATA
	Three Months Ended
Share Price:	March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015
High	$	17.97		$	18.56		$	18.35		$	19.73		$	20.21
Low	$	14.23		$	16.50		$	15.65		$	16.97		$	17.66
Closing (end of period)	$	15.95		$	18.10		$	16.80		$	17.16		$	19.30
Dividends per common share	$	0.095		$	0.095		$	0.095		$	0.095		$	0.095	(2)
Annualized dividends per common share	$	0.380		$	0.380		$	0.380		$	0.380		$	0.380
Dividend yield (on closing share price)		2.4	%		2.1	%		2.3	%		2.2	%		2.0	%
PORTFOLIO STATISTICS
	Number of			Square			% Leased(1)			% Occupied(1)
Region:	Properties			Feet			as of March 31, 2016			as of March 31, 2016
New York		6			7,152,207			95.7	%		94.3	%
Washington, D.C.		5			1,602,655			92.5	%		91.5	%
San Francisco		1			1,611,125			98.3	%		97.2	%
		12			10,365,987			95.6	%		94.3	%

⁽¹⁾  See page 37 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, 2016			December 31, 2015
ASSETS:
Rental Property, at cost
Land	$	2,042,071		$	2,042,071
Buildings and improvements		5,630,764			5,610,046
		7,672,835			7,652,117
Accumulated depreciation and amortization		(283,379	)		(243,089	)
Rental Property, net		7,389,456			7,409,028
Cash and cash equivalents		178,721			143,884
Restricted cash		42,253			41,823
Real estate fund investments		—			416,438
Investments in unconsolidated real estate funds		26,880			—
Investments in unconsolidated joint ventures		7,121			7,102
Preferred equity investments		54,304			53,941
Marketable securities		21,398			21,521
Deferred rent receivable		97,660			77,792
Accounts and other receivables, net		12,092			10,844
Deferred charges, net		77,254			74,991
Intangible assets, net		464,227			511,207
Other assets		32,691			6,658
Total Assets	$	8,404,057		$	8,775,229
LIABILITIES:
Notes and mortgages payable, net	$	2,923,834		$	2,922,610
Revolving credit facility		40,000			20,000
Due to affiliates (1)		27,299			27,299
Loans payable to noncontrolling interests		—			45,662
Accounts payable and accrued expenses		154,680			102,730
Dividends and distributions payable		25,147			25,067
Deferred income taxes		1,819			2,533
Interest rate swap liabilities		116,943			93,936
Intangible liabilities, net		167,069			179,741
Other liabilities		45,955			45,101
Total Liabilities		3,502,746			3,464,679
EQUITY:
Paramount Group, Inc. stockholders’ equity		3,725,824			3,761,017
Noncontrolling interests in:
Consolidated real estate funds		62,935			414,637
Consolidated joint ventures		238,101			236,849
Operating Partnership		874,451			898,047
Total Equity		4,901,311			5,310,550
TOTAL LIABILITIES AND EQUITY	$	8,404,057		$	8,775,229

⁽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 amounts)

	Three Months Ended
	March 31, 2016			March 31, 2015			December 31, 2015
REVENUES:
Property rentals	$	125,002		$	126,402		$	124,559
Straight-line rent adjustments		19,869			15,951			19,663
Amortization of (above) below market leases, net		(3,619	)		890			6,678
Rental income		141,252			143,243			150,900
Tenant reimbursement income		10,789			13,488			10,929
Fee income (see details on page 9)		3,417			1,535			4,848
Other income (see details on page 9)		17,460			2,960			3,851
Total revenues		172,918			161,226			170,528
EXPENSES:
Operating		62,945			61,884			61,735
Depreciation and amortization		74,812			73,583			70,966
General and administrative (see details on page 9)		13,961			12,613			13,644
Acquisition and transaction related costs		935			1,139			523
Total expenses		152,653			149,219			146,868
Operating income		20,265			12,007			23,660
Income from real estate fund investments		—			5,221			7,749
Loss from unconsolidated real estate funds		(326	)		—			—
Income from unconsolidated joint ventures		1,496			975			2,406
Interest and other income, net (see details on page 9)		1,700			854			1,268
Interest and debt expense (see details on page 9)		(37,119	)		(41,888	)		(41,421	)
Unrealized gain on interest rate swaps		6,860			11,978			26,263
Net (loss) income before income taxes		(7,124	)		(10,853	)		19,925
Income tax (expense) benefit		(363	)		(574	)		140
Net (loss) income		(7,487	)		(11,427	)		20,065
Less net (income) loss attributable to noncontrolling interests in:
Consolidated real estate funds		674			(2,209	)		(4,496	)
Consolidated joint ventures		(1,252	)		1,541			(4,495	)
Operating Partnership		1,571			2,364			(2,169	)
Net (loss) income attributable to common stockholders	$	(6,494	)	$	(9,731	)	$	8,905
Weighted average common shares outstanding
Basic		212,403,593			212,106,718			212,106,718
Diluted		212,403,593			212,106,718			212,111,790
Net (loss) income per share attributable to common stockholders
Basic	$	(0.03	)	$	(0.05	)	$	0.04
Diluted	$	(0.03	)	$	(0.05	)	$	0.04

- 8 -

	SELECT INCOME STATEMENT DATA
(unaudited and in thousands)

	Three Months Ended
Fee Income:	March 31, 2016		March 31, 2015		December 31, 2015
Property management	$	1,521	$	1,329	$	1,489
Asset management (1)		1,714		—		—
Acquisition and Leasing		—		16		3,247
Other		182		190		112
Total fee income	$	3,417	$	1,535	$	4,848
(1)      As a result of deconsolidating our real estate funds that were accounted for at fair value on January 1, 2016, asset management fees are now included in fee income, as opposed to a reduction of income attributable to noncontrolling interests in the prior periods. (See page 18 for asset management fees recognized in prior periods.)
	Three Months Ended
Other Income:	March 31, 2016		March 31, 2015		December 31, 2015
Lease termination income	$	10,955	$	391	$	665
Other (primarily tenant requested work)		6,505		2,569		3,186
Total other income	$	17,460	$	2,960	$	3,851
	Three Months Ended
General and Administrative:	March 31, 2016		March 31, 2015		December 31, 2015
Non-cash general and administrative - stock based compensation expense	$	1,772	$	1,174	$	1,297
All other general and administrative		9,111		7,391		11,305
Mark-to-market of deferred compensation plan liabilities (offset by an increase in the mark-to-market of plan assets, which is included in “interest and other income”)		204		733		1,042
Severance costs		2,874		3,315		—
Total general and administrative	$	13,961	$	12,613	$	13,644
	Three Months Ended
Interest and Other Income:	March 31, 2016		March 31, 2015		December 31, 2015
Preferred equity investment income (1)	$	1,416	$	—	$	—
Interest income		80		121		226
Mark-to-market of deferred compensation plan assets (offset by an increase in the mark-to-market of plan liabilities, which is included in “general and administrative” expenses)		204		733		1,042
Total interest and other income	$	1,700	$	854	$	1,268
(1)      Represents 100% of the investment income from PGRESS Equity Holdings, L.P., of which our share is $345.
	Three Months Ended
Interest and Debt Expense:	March 31, 2016		March 31, 2015		December 31, 2015
Interest expense	$	35,861	$	41,304	$	40,610
Amortization of deferred financing costs		1,258		584		811
Total interest and debt expense	$	37,119	$	41,888	$	41,421

- 9 -

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

	Three Months Ended
	March 31, 2016			March 31, 2015			December 31, 2015
Reconciliation of net (loss) income to FFO and Core FFO:
Net (loss) income	$	(7,487	)	$	(11,427	)	$	20,065
Real estate depreciation and amortization (including pro rata share of unconsolidated joint ventures)		76,351			75,059			72,469
FFO (1)		68,864			63,632			92,534
Less FFO attributable to noncontrolling interests in:
Consolidated real estate funds		448			(2,420	)		(4,726	)
Consolidated joint ventures		(8,147	)		(7,369	)		(11,256	)
FFO attributable to Paramount Group Operating Partnership		61,165			53,843			76,552
Less FFO attributable to noncontrolling interests in Operating Partnership		(11,917	)		(10,526	)		(14,993	)
FFO attributable to common stockholders (1)	$	49,248		$	43,317		$	61,559
Per diluted share	$	0.23		$	0.20		$	0.29
FFO	$	68,864		$	63,632		$	92,534
Non-core (income) expense:
Acquisition and transaction related costs		935			1,139			523
Severance costs		2,874			3,315			—
Unrealized gain on interest rate swaps (including pro rata share of unconsolidated joint ventures)		(6,860	)		(12,364	)		(27,328	)
Core FFO (1)		65,813			55,722			65,729
Less Core FFO attributable to noncontrolling interests in:
Consolidated real estate funds		448			(2,420	)		(4,726	)
Consolidated joint ventures		(5,414	)		(4,871	)		(4,809	)
Core FFO attributable to Paramount Group Operating Partnership		60,847			48,431			56,194
Less Core FFO attributable to noncontrolling interests in Operating Partnership		(11,855	)		(9,468	)		(11,006	)
Core FFO attributable to common stockholders (1)	$	48,992		$	38,963		$	45,188
Per diluted share	$	0.23		$	0.18		$	0.21
Reconciliation of weighted average shares outstanding:
Weighted average shares outstanding		212,403,593			212,106,718			212,106,718
Effect of dilutive securities		4,366			11,928			5,072
Denominator for FFO per diluted share		212,407,959			212,118,646			212,111,790

⁽¹⁾ See page 37 for our definition of this measure.

- 10 -

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

	Three Months Ended
	March 31, 2016			March 31, 2015			December 31, 2015
Reconciliation of Core FFO to FAD:
Core FFO	$	65,813		$	55,722		$	65,729
Add (subtract) adjustments to arrive at FAD:
Amortization of stock-based compensation expense		1,772			1,174			1,297
Amortization of deferred financing costs (including pro rata share of unconsolidated joint ventures)		1,309			584			862
Amortization of above (below) market leases, net		3,619			(890	)		(6,678	)
Recurring tenant improvements, leasing commissions and other capital expenditures		(20,428	)		(18,093	)		(41,325	)
Straight-line rent adjustments (including pro rata share of unconsolidated joint ventures)		(19,970	)		(15,910	)		(19,488	)
Unrealized gains on real estate fund investments		—			(873	)		(4,435	)
FAD (1)		32,115			21,714			(4,038	)
Less FAD attributable to noncontrolling interests in:
Consolidated real estate funds		448			(1,903	)		(880	)
Consolidated joint ventures		(517	)		1,135			4,416
FAD attributable to Paramount Group Operating Partnership		32,046			20,946			(502	)
Less FAD attributable to noncontrolling interests in Operating Partnership		(6,244	)		(4,094	)		98
FAD attributable to common stockholders (1) (2)	$	25,802		$	16,852		$	(404	)
FAD payout ratio (1) (2)		78.2	%		119.6	%		n/a

⁽¹⁾ See page 37 for our definition of this measure.

⁽²⁾ FAD attributable to common stockholders and the related payout ratios on a quarterly basis are not necessarily indicative of future FAD and related payout ratios due to the fluctuation in the timing of tenant improvements, leasing commissions and cash rents received from leases for which such costs are incurred.

- 11 -

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

	Three Months Ended
	March 31, 2016			March 31, 2015			December 31, 2015
Reconciliation of net (loss) income to EBITDA and Adjusted EBITDA:
Net (loss) income	$	(7,487	)	$	(11,427	)	$	20,065
Add (subtract) adjustments to arrive at EBITDA:
Depreciation and amortization		74,812			73,583			70,966
Interest and debt expense		37,119			41,888			41,421
Income tax expense (benefit)		363			574			(140	)
Pro rata share of above adjustments of unconsolidated joint ventures		2,939			3,190			2,880
EBITDA (1)		107,746			107,808			135,192
Less EBITDA attributable to noncontrolling interests in:
Consolidated real estate funds		450			(3,414	)		(5,567	)
Consolidated joint ventures		(15,077	)		(15,909	)		(17,849	)
Pro rata share of EBITDA (1)	$	93,119		$	88,485		$	111,776
EBITDA	$	107,746		$	107,808		$	135,192
Add (subtract) adjustments to arrive at adjusted EBITDA:
Acquisition and transaction related costs		935			1,139			523
Severance costs		2,874			3,315			—
Unrealized gain on interest rate swaps (including pro rata share of unconsolidated joint ventures)		(6,860	)		(12,364	)		(27,328	)
EBITDA from real estate funds		844			(4,010	)		(6,114	)
Adjusted EBITDA (1)		105,539			95,888			102,273
Less Adjusted EBITDA attributable to noncontrolling interests in consolidated joint ventures		(12,344	)		(13,411	)		(11,401	)
Pro rata share of Adjusted EBITDA (1)	$	93,195		$	82,477		$	90,872

⁽¹⁾ See page 37 for our definition of this measure.

- 12 -

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

	Three Months Ended
	March 31, 2016			March 31, 2015			December 31, 2015
Reconciliation of net (loss) income to NOI and Cash NOI:
Net (loss) income	$	(7,487	)	$	(11,427	)	$	20,065
Add (subtract) adjustments to arrive at NOI and Cash NOI:
Depreciation and amortization		74,812			73,583			70,966
General and administrative		13,961			12,613			13,644
Interest and debt expense		37,119			41,888			41,421
Acquisition and transaction related costs		935			1,139			523
Income tax expense (benefit)		363			574			(140	)
NOI from unconsolidated joint ventures		4,428			3,781			4,218
Income from real estate fund investments		—			(5,221	)		(7,749	)
Loss from unconsolidated real estate funds		326			—			—
Income from unconsolidated joint ventures		(1,496	)		(975	)		(2,406	)
Fee income		(3,417	)		(1,535	)		(4,848	)
Interest and other income, net		(1,700	)		(854	)		(1,268	)
Unrealized gain on interest rate swaps		(6,860	)		(11,978	)		(26,263	)
NOI (1)		110,984			101,588			108,163
Less NOI attributable to noncontrolling interests in:
Consolidated real estate funds		450			(197	)		47
Consolidated joint ventures		(11,269	)		(13,422	)		(11,398	)
Pro rata share of NOI (1)	$	100,165		$	87,969		$	96,812
NOI	$	110,984		$	101,588		$	108,163
Less:
Straight-line rent adjustments (including pro rata share of unconsolidated joint ventures)		(19,970	)		(15,910	)		(19,488	)
Amortization of above (below) market leases, net		3,619			(890	)		(6,678	)
Cash NOI (1)		94,633			84,788			81,997
Less Cash NOI attributable to noncontrolling interests in:
Consolidated real estate funds		450			(197	)		47
Consolidated joint ventures		(7,844	)		(9,250	)		(6,724	)
Pro rata share of Cash NOI (1)	$	87,239		$	75,341		$	75,320

⁽¹⁾ See page 37 for our definition of this measure.

- 13 -

	NOI - BY SEGMENT
(unaudited and in thousands)

	Three Months Ended March 31, 2016
	Total			New York			Washington, D.C.			San Francisco			Other
Reconciliation of net (loss) income to NOI and Cash NOI:
Net (loss) income	$	(7,487	)	$	8,089		$	(433	)	$	470		$	(15,613	)
Add (subtract) adjustments to arrive at NOI:
Depreciation and amortization		74,812			53,161			7,742			13,520			389
General and administrative		13,961			—			—			—			13,961
Interest and debt expense		37,119			16,942			5,133			13,793			1,251
Acquisition and transaction related costs		935			—			—			—			935
Income tax expense (benefit)		363			—			(716	)		28			1,051
NOI from unconsolidated joint ventures		4,428			4,347			—			—			81
Loss from unconsolidated real estate funds		326			—			—			—			326
Income from unconsolidated joint ventures		(1,496	)		(1,476	)		—			—			(20	)
Fee income		(3,417	)		—			—			—			(3,417	)
Interest and other income, net		(1,700	)		(49	)		(19	)		(6	)		(1,626	)
Unrealized gain on interest rate swaps		(6,860	)		(1,501	)		—			(5,359	)		—
NOI (1)		110,984			79,513			11,707			22,446			(2,682	)
Less NOI attributable to noncontrolling interests in:
Consolidated real estate funds		450			—			—			—			450
Consolidated joint ventures		(11,269	)		—			—			(11,269	)		—
Pro rata share of NOI for the three months ended March 31, 2016	$	100,165		$	79,513		$	11,707		$	11,177		$	(2,232	)
Pro rata share of NOI for the three months ended March 31, 2015	$	87,969		$	69,089		$	11,374		$	9,433		$	(1,927	)
NOI (1)	$	110,984		$	79,513		$	11,707		$	22,446		$	(2,682	)
Add (subtract) adjustments to arrive at Cash NOI:
Straight-line rent adjustments (including pro rata share of unconsolidated joint ventures)		(19,970	)		(16,688	)		(622	)		(2,719	)		59
Amortization of above (below) market leases, net		3,619			8,169			(553	)		(3,997	)		—
Cash NOI (1)		94,633			70,994			10,532			15,730			(2,623	)
Less Cash NOI attributable to noncontrolling interests in:
Consolidated real estate funds		450			—			—			—			450
Consolidated joint ventures		(7,844	)		—			—			(7,844	)		—
Pro rata share of Cash NOI for the three months ended March 31, 2016	$	87,239		$	70,994		$	10,532		$	7,886		$	(2,173	)
Pro rata share of Cash NOI for the three months ended March 31, 2015	$	75,341		$	60,700		$	10,469		$	6,054		$	(1,882	)

⁽¹⁾ See page 37 for our definition of this measure.

- 14 -

SAME STORE RESULTS - BY SEGMENT

(unaudited and in thousands)

	Three Months Ended March 31, 2016
SAME STORE NOI (1) - GAAP	Total			New York			Washington, D.C.			San Francisco			Other
Pro rata share of NOI for the three months ended March 31, 2016	$	100,165		$	79,513		$	11,707		$	11,177		$	(2,232	)
Acquisitions (2)		(3,773	)		(3,773	)		—			—			—
Lease termination income (including pro rata share of unconsolidated joint ventures)		(11,000	)		(10,968	) (3)		—			(32	)		—
Other, net		6,785			6,785	(3)		—			—			—
Pro rata share of Same Store NOI (1) for the three months ended March 31, 2016	$	92,177		$	71,557		$	11,707		$	11,145		$	(2,232	)
	Three Months Ended March 31, 2015
	Total			New York			Washington, D.C.			San Francisco			Other
Pro rata share of NOI for the three months ended March 31, 2015	$	87,969		$	69,089		$	11,374		$	9,433		$	(1,927	)
Acquisitions		—			—			—			—			—
Lease termination income (including pro rata share of unconsolidated joint ventures)		(358	)		(251	)		—			(107	)		—
Other, net		—			—			—			—			—
Pro rata share of Same Store NOI (1) for the three months ended March 31, 2015	$	87,611		$	68,838		$	11,374		$	9,326		$	(1,927	)
Increase (decrease) in Same Store NOI	$	4,566		$	2,719		$	333		$	1,819		$	(305	)
% Increase		5.2	%		3.9	%		2.9	%		19.5	%

⁽¹⁾  See page 37 for our definition of this measure.

⁽²⁾  Represents the acquisition of the remaining 35.8% equity interest that we did not previously own in 31 West 52nd Street.

⁽³⁾  Includes (i) $10,861 of cash income from the termination of a lease with a tenant at 1633 Broadway, which was partially offset by (ii) $10,057 of non-cash write-offs primarily related to the above market lease asset and (iii) a $473 write-off of the tenant’s accounts receivable.

- 15 -

SAME STORE RESULTS - BY SEGMENT

(unaudited and in thousands)

	Three Months Ended March 31, 2016
SAME STORE NOI (1) - CASH	Total			New York			Washington, D.C.			San Francisco			Other
Pro rata share of Cash NOI for the three months ended March 31, 2016	$	87,239		$	70,994		$	10,532		$	7,886		$	(2,173	)
Acquisitions (2)		(3,397	)		(3,397	)		—			—			—
Lease termination income (including pro rata share of unconsolidated joint ventures)		(11,000	)		(10,968	) (3)		—			(32	)		—
Other, net		473			473			—			—			—
Pro rata share of Same Store Cash NOI (1) for the three months ended March 31, 2016	$	73,315		$	57,102		$	10,532		$	7,854		$	(2,173	)
	Three Months Ended March 31, 2015
	Total			New York			Washington, D.C.			San Francisco			Other
Pro rata share of Cash NOI for the three months ended March 31, 2015	$	75,341		$	60,700		$	10,469		$	6,054		$	(1,882	)
Acquisitions		—			—			—			—			—
Lease termination income (including pro rata share of unconsolidated joint ventures)		(358	)		(251	)		—			(107	)		—
Other, net		—			—			—			—			—
Pro rata share of Same Store Cash NOI (1) for the three months ended March 31, 2015	$	74,983		$	60,449		$	10,469		$	5,947		$	(1,882	)
(Decrease) increase in Same Store Cash NOI	$	(1,668	)	$	(3,347	)	$	63		$	1,907		$	(291	)
% (Decrease) increase		(2.2	%)		(5.5	%)		0.6	%		32.1	%

⁽¹⁾  See page 37 for our definition of this measure.

⁽²⁾  Represents the acquisition of the remaining 35.8% equity interest that we did not previously own in 31 West 52nd Street.

⁽³⁾  Includes $10,861 of cash income from the termination of a lease with a tenant at 1633 Broadway.

- 16 -

CONSOLIDATED JOINT VENTURES AND FUNDS - BALANCE SHEETS

(unaudited and in thousands)

	As of March 31, 2016								As of December 31, 2015
	Consolidated Joint Ventures								Consolidated Joint Ventures
	Total Consolidated Joint Ventures		One Market Plaza		PGRESS Equity Holdings L.P.		Residential Development Fund (1)		Total Consolidated Joint Ventures		One Market Plaza		PGRESS Equity Holdings L.P.		Real Estate Funds (1)
Ownership %				49.0%		24.4%		13.4%				49.0%		25.4%		Various
ASSETS:
Rental property, net	$	1,270,724	$	1,270,724	$	—	$	68,767	$	1,276,358	$	1,276,358	$	—	$	67,286
Cash and cash equivalents		6,565		6,150		415		4,814		7,115		6,539		576		14,495
Restricted cash		13,428		13,428		—		—		13,188		13,188		—		—
Real estate fund investments (1)		—		—		—		—		—		—		—		416,438
Preferred equity investments		54,304		—		54,304		—		53,941		—		53,941		—
Deferred rent receivable		21,106		21,106		—		—		18,386		18,386		—		—
Accounts and other receivables, net		397		397		—		595		327		327		—		287
Deferred charges, net		5,148		5,148		—		—		4,958		4,958		—		—
Intangible assets, net		66,099		66,099		—		—		71,305		71,305		—		—
Other assets		352		352		—		8		664		664		—		16
Total Assets	$	1,438,123	$	1,383,404	$	54,719	$	74,184	$	1,446,242	$	1,391,725	$	54,517	$	498,522
LIABILITIES:
Notes and mortgages payable, net	$	857,893	$	857,893	$	—	$	—	$	857,037	$	857,037	$	—	$	—
Loans payable to noncontrolling interests		—		—		—		—		—		—		—		45,662
Accounts payable and accrued expenses		28,267		28,267		—		1,527		28,548		28,548		—		936
Interest rate swap liabilities		50,046		50,046		—		—		55,404		55,404		—		—
Intangible liabilities, net		60,823		60,823		—		—		65,011		65,011		—		—
Other liabilities		3,188		3,188		—		20		2,888		2,659		229		184
Total Liabilities		1,000,217		1,000,217		—		1,547		1,008,888		1,008,659		229		46,782
EQUITY:
Paramount Group, Inc. stockholders’ equity		199,805		187,222		12,583		9,702		200,505		187,282		13,223		37,103
Noncontrolling interests		238,101		195,965		42,136		62,935		236,849		195,784		41,065		414,637
Total Equity		437,906		383,187		54,719		72,637		437,354		383,066		54,288		451,740
TOTAL LIABILITIES AND EQUITY	$	1,438,123	$	1,383,404	$	54,719	$	74,184	$	1,446,242	$	1,391,725	$	54,517	$	498,522

⁽¹⁾  On January 1, 2016, we adopted (“ASU 2015-02”) Amendments to the Consolidation Analysis to ASC Topic 810, Consolidation, which resulted in the deconsolidation of all of our real estate fund investments that were accounted for at fair value, except for the Residential Development Fund, which is accounted for at historical cost and will continue to be consolidated into our financial statements.

- 17 -

CONSOLIDATED JOINT VENTURES AND FUNDS - OPERATING RESULTS

(unaudited and in thousands)

	Three Months Ended March 31, 2016											Three Months Ended March 31, 2015
	Consolidated Joint Ventures											Consolidated Joint Ventures
	Total Consolidated Joint Ventures			One Market Plaza			PGRESS Equity Holdings L.P.		Residential Development Fund (1)			Total Consolidated Joint Ventures			31 West 52nd Street			One Market Plaza			Real Estate Funds (1)
Total revenues	$	29,619		$	29,619		$	—	$	833		$	42,937		$	17,121		$	25,816		$	811
Total operating expenses		7,173			7,173			—		1,352			12,933			6,124			6,809			582
Net operating income		22,446			22,446			—		(519	)		30,004			10,997			19,007			229
Depreciation and amortization		(13,520	)		(13,520	)		—		(259	)		(19,415	)		(6,514	)		(12,901	)		(243	)
Income from real estate fund investments (1)		—			—			—		—			—			—			—			5,221
Interest and other income, net		1,422			6			1,416		1			18			15			3			—
Interest and debt expense		(13,793	)		(13,793	)		—		—			(18,280	)		(5,156	)		(13,124	)		(993	)
Unrealized gain on interest rate swaps		5,359			5,359			—		—			5,331			1,457			3,874			—
Net income (loss) before income taxes		1,914			498			1,416		(777	)		(2,342	)		799			(3,141	)		4,214
Income tax (expense) benefit		(28	)		(28	)		—		1			(2	)		—			(2	)		(1	)
Net income (loss)	$	1,886		$	470		$	1,416	$	(776	)	$	(2,344	)	$	799		$	(3,143	)	$	4,213
Paramount Group, Inc.’s pro rata share Ownership %	Total			49.0%			24.4%		13.4%			Total			64.2%			49.0%			Various
Net income (loss)	$	456		$	111		$	345	$	(344	)	$	(1,029	)	$	513		$	(1,542	)	$	272
Add: Management fee income		178			178			—		242			226			122			104			1,334
Add: Carried interest		—			—			—		—			—			—			—			398
Net income (loss) attributable to Paramount Group, Inc.		634			289			345		(102	)		(803	)		635			(1,438	)		2,004
Add: Real estate depreciation and amortization		6,625			6,625			—		33			10,505			4,182			6,323			32
FFO (2)		7,259			6,914			345		(69	)		9,702			4,817			4,885			2,036
Less: Unrealized gain on interest rate swaps		(2,626	)		(2,626	)		—		—			(2,833	)		(935	)		(1,898	)		—
Core FFO (2)	$	4,633		$	4,288		$	345	$	(69	)	$	6,869		$	3,882		$	2,987		$	2,036
Noncontrolling Interests’ pro rata share Ownership %	Total			51.0%			75.6%		86.6%			Total			35.8%			51.0%			Various
Net income (loss)	$	1,430		$	359		$	1,071	$	(432	)	$	(1,315	)	$	286		$	(1,601	)	$	3,941
Less: Management fee expense		(178	)		(178	)		—		(242	)		(226	)		(122	)		(104	)		(1,334	)
Less: Carried interest		—			—			—		—			—			—			—			(398	)
Net income (loss) attributable to noncontrolling interests		1,252			181			1,071		(674	)		(1,541	)		164			(1,705	)		2,209
Add: Real estate depreciation and amortization		6,895			6,895			—		226			8,910			2,332			6,578			211
FFO (2)		8,147			7,076			1,071		(448	)		7,369			2,496			4,873			2,420
Less: Unrealized gain on interest rate swaps		(2,733	)		(2,733	)		—		—			(2,498	)		(522	)		(1,976	)		—
Core FFO (2)	$	5,414		$	4,343		$	1,071	$	(448	)	$	4,871		$	1,974		$	2,897		$	2,420

⁽¹⁾  On January 1, 2016, we adopted (“ASU 2015-02”) Amendments to the Consolidation Analysis to ASC Topic 810, Consolidation, which resulted in the deconsolidation of all of our real estate fund investments that were accounted for at fair value, except for the Residential Development Fund, which is accounted for at historical cost and will continue to be consolidated into our financial statements.

⁽²⁾  See page 37 for our definition of this measure.

- 18 -

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

	As of March 31, 2016									As of December 31, 2015
	Total			712 Fifth Avenue			Oder-Center, Germany (1)			Total			712 Fifth Avenue			Oder-Center, Germany (1)
Ownership %				50.0%			9.5%						50.0%			9.5%
ASSETS:
Rental property, net	$	218,407		$	212,052		$	6,355		$	220,765		$	214,139		$	6,626
Cash and cash equivalents		16,619			15,696			923			18,388			17,341			1,047
Restricted Cash		323			323			—			323			323			—
Deferred rent receivable		12,680			12,680			—			12,479			12,479			—
Accounts and other receivables, net		809			809			—			1,179			1,179			—
Deferred charges, net		9,283			9,283			—			9,704			9,704			—
Other assets		3,584			3,273			311			492			311			181
Total Assets	$	261,705		$	254,116		$	7,589		$	263,330		$	255,476		$	7,854
LIABILITIES:
Notes and mortgages payable, net	$	268,899		$	245,684		$	23,215		$	269,725		$	245,582		$	24,143
Accounts payable and accrued expenses		4,193			4,183			10			5,450			5,324			126
Interest rate swap liabilities		9,146			9,146			—			9,146			9,146			—
Other liabilities		620			367			253			649			530			119
Total Liabilities		282,858			259,380			23,478			284,970			260,582			24,388
Total Equity		(21,153	)		(5,264	)		(15,889	)		(21,640	)		(5,106	)		(16,534	)
TOTAL LIABILITIES AND EQUITY	$	261,705		$	254,116		$	7,589		$	263,330		$	255,476		$	7,854

⁽¹⁾ We account for our interest in Oder-Center, Germany on a one quarter lag basis.

- 19 -

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

	Three Months Ended March 31, 2016									Three Months Ended March 31, 2015
	Total			712 Fifth Avenue			Oder-Center, Germany (1)			Total			712 Fifth Avenue			Oder-Center, Germany (1)
Total revenues	$	15,366		$	14,312		$	1,054		$	14,939		$	13,694		$	1,245
Total operating expenses		5,818			5,617			201			6,415			6,228			187
Net operating income		9,548			8,695			853			8,524			7,466			1,058
Depreciation and amortization expense		(3,103	)		(3,008	)		(95	)		(3,041	)		(2,930	)		(111	)
Unrealized gain on interest rate swaps		—			—			—			771			771			—
Interest and other income, net		14			14			—			2			2			—
Interest and debt expense		(3,022	)		(2,748	)		(274	)		(3,758	)		(3,428	)		(330	)
Net income before income taxes		3,437			2,953			484			2,498			1,881			617
Income tax expense		(2	)		—			(2	)		(13	)		—			(13	)
Net income	$	3,435		$	2,953		$	482		$	2,485		$	1,881		$	604
Paramount Group, Inc.’s pro rata share Ownership %	Total			50.0%			9.5%			Total			50.0%			9.5%
Net income	$	1,522		$	1,476		$	46		$	998		$	940		$	58
Less: Step-up basis adjustment		(26	)		—			(26	)		(23	)		—			(23	)
Net income attributable to Paramount Group, Inc.		1,496			1,476			20			975			940			35
Add: Real estate depreciation and amortization		1,539			1,504			35			1,476			1,465			11
FFO (2)		3,035			2,980			55			2,451			2,405			46
Less: Unrealized gain on interest rate swaps		—			—			—			(386	)		(386	)		—
Core FFO (2)	$	3,035		$	2,980		$	55		$	2,065		$	2,019		$	46
Joint Venture Partners’ pro rata share Ownership %	Total			50.0%			90.5%			Total			50.0%			90.5%
Net income	$	1,913		$	1,477		$	436		$	1,487		$	941		$	546
Add: Real estate depreciation and amortization		1,590			1,504			86			1,565			1,465			100
FFO (2)		3,503			2,981			522			3,052			2,406			646
Less: Unrealized gain on interest rate swaps		—			—			—			(386	)		(386	)		—
Core FFO (2)	$	3,503		$	2,981		$	522		$	2,666		$	2,020		$	646

⁽¹⁾ We account for our interest in Oder-Center, Germany on a one quarter lag basis.

⁽²⁾ See page 37 for our definition of this measure.

- 20 -

	UNCONSOLIDATED FUNDS SUMMARY
(unaudited)

Property Funds:

The following is a summary of the Property Funds, our ownership interests in these funds and the funds’ ownership interest in the underlying investments, as of March 31, 2016.

Fund	Paramount Ownership			60 Wall Street			One Market Plaza			50 Beale Street			670 Broadway
Fund II		10.0	%		46.3	%		—			—			—
Fund III		3.1	%		16.0	%		2.0	%		—			—
Fund VII/VII-H		7.2	%		—			—			42.8	%		100.0	%
Total Property Funds					62.3	%		2.0	%		42.8	%		100.0	%
Other Investors					37.7	%		98.0	%(1)		57.2	%		—
Total					100.0	%		100.0	%		100.0	%		100.0	%

The following is a summary of the Property Fund investments and our ownership interests in the underlying investments, as of March 31, 2016.

		Paramount			Square		%			%			Annualized Rent (2)
Investments	Submarket	Ownership			Feet		Leased			Occupied			Amount			Per Square Foot (3)
60 Wall Street	Downtown		5.1	%		1,625,483		100.0	%		100.0	%	$	67,000,000	(4)	$	41.22	(4)
50 Beale Street	South Financial District		3.1	%		663,483		98.6	%		98.6	%		34,328,000			52.91
670 Broadway	NoHo		7.2	%		75,945		49.8	%		1.8	%		N/A	(5)		N/A	(5)

Alternative Investment Fund (“Fund VIII”):

The following is a summary of our ownership interests in Fund VIII and the underlying investments in Fund VIII, as of March 31, 2016.

		Paramount								Fair Value of Investment
Investments	Investment Type	Ownership			Interest Rate			Initial Maturity		Total		Our Share
26 Broadway (6)	Mezzanine Loan		1.7	%		8.3	%		Jan-2022	$	46,665,000	$	793,000
1440 Broadway (7)	Mezzanine Loan		1.7	%		6.4	%		Oct-2019		40,020,000		680,000
700 Eighth Avenue (8)	Mortgage/Mezzanine Loans		1.7	%		6.4	%		Dec-2016		80,272,000		1,365,000
										$	166,957,000	$	2,838,000

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

⁽²⁾  See page 37 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.

⁽⁵⁾  Property is currently being renovated and approximately 48.0% of the property has already been leased to Equinox at an initial rent of $123.96 per square foot.

⁽⁶⁾  Represents a $46,000,000 mezzanine loan secured by the equity interests in the owner of 26 Broadway that bears interest at a fixed rate of 8.3%.

⁽⁷⁾  Represents a $40,000,000 mezzanine loan secured by the equity interests in the owner of 1440 Broadway that bears interest at LIBOR plus 600 bps.

⁽⁸⁾  Represents a senior mortgage and a mezzanine loan aggregating $80,000,000 secured by 700 Eighth Avenue that bears interest at LIBOR plus 600 bps.

- 21 -

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

					As of March 31, 2016
Debt:
Consolidated debt:
Notes and mortgages payable (1)					$	2,942,026
$1.0 billion revolving credit facility						40,000
						2,982,026
Less:
Noncontrolling interest’s share of consolidated debt (One Market Plaza)						(437,525	)
Add:
Pro rata share of unconsolidated joint venture debt (712 Fifth Avenue and Oder-Center, Germany)						125,455
Total debt						2,669,956
	Shares / Units Outstanding		Share Price at March 31, 2016
Equity:
Common stock		213,036,508	$	15.95		3,397,932
Operating Partnership units		51,443,466		15.95		820,524
		264,479,974		15.95		4,218,456
Total Market Capitalization					$	6,888,412

⁽¹⁾  Represents contractual amount due pursuant to the respective debt agreements.

- 22 -

	DEBT ANALYSIS
(unaudited and in thousands)

	Total Debt						Fixed Rate Debt						Variable Rate Debt
Consolidated Debt:	Amount			Rate			Amount			Rate			Amount			Rate
1633 Broadway	$	1,013,544			3.52	%	$	1,000,000			3.54	%	$	13,544			2.19	%
31 West 52nd Street		413,490			4.23	%		237,600			6.04	%		175,890			1.78	%
900 Third Avenue		274,337			4.23	%		162,000			5.98	%		112,337			1.70	%
Waterview		210,000			5.76	%		210,000			5.76	%		—			—
1899 Pennsylvania Avenue		88,762			4.88	%		88,762			4.88	%		—			—
Liberty Place		84,000			4.50	%		84,000			4.50	%		—			—
One Market Plaza		857,893			6.14	%		857,893			6.14	%		—			—
$1.0 Billion Revolving Credit Facility		40,000			1.69	%		—			—			40,000			1.69	%
Total consolidated debt		2,982,026			4.64	%		2,640,255			5.01	%		341,771			1.76	%
Noncontrolling interest’s share		(437,525	)		6.14	%		(437,525	)		6.14	%		—			—
Pro rata share of consolidated debt	$	2,544,501			4.38	%	$	2,202,730			4.79	%	$	341,771			1.76	%
Unconsolidated Joint Venture Debt:
712 Fifth Avenue	$	246,500			4.23	%	$	135,000			5.78	%	$	111,500			2.36	%
Oder-Center, Germany		23,215			4.62	%		23,215			4.62	%		—			—
Total unconsolidated debt		269,715			4.27	%		158,215			5.61	%		111,500			2.36	%
Joint venture partners’ share		(144,260	)		4.29	%		(88,510	)		5.50	%		(55,750	)		2.36	%
Pro rata share of unconsolidated debt	$	125,455			4.24	%	$	69,705			5.74	%	$	55,750			2.36	%
Pro Rata Share of Total Debt	$	2,669,956			4.37	%	$	2,272,435			4.82	%	$	397,521			1.84	%

Revolving Credit Facility Covenants: (1)	Required	Actual
Total Debt / Total Assets	Less than 60%		41.6	%
Secured Debt / Total Assets	Less than 45%		37.6	%
Fixed Charge Coverage	Greater than 1.5x		3.0x
Unsecured Debt / Unencumbered Assets	Less than 60%		15.2	%
Unencumbered Interest Coverage	Greater than 1.75x		21.7x

Debt Composition:	Amount		%
Fixed rate debt:
Pro rata consolidated fixed rate debt	$	2,202,730
Pro rata unconsolidated fixed rate debt		69,705
Total fixed rate debt		2,272,435		85.1	%
Variable rate debt:
Pro rata consolidated variable rate debt		341,771
Pro rata unconsolidated variable rate debt		55,750
Total variable rate debt		397,521		14.9	%
Pro Rata Share of Total Debt	$	2,669,956		100.0	%

⁽¹⁾  This section presents ratios as of March 31, 2016 in accordance with the terms of the Company’s revolving 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 revolving credit facility.

- 23 -

	DEBT MATURITIES
(unaudited and in thousands)

Consolidated Debt:	2016		2017			2018			2019			2020			Thereafter			Total
31 West 52nd Street	$	—	$	413,490	(1)	$	—		$	—		$	—		$	—		$	413,490
900 Third Avenue		—		274,337			—			—			—			—			274,337
Waterview		—		210,000			—			—			—			—			210,000
Liberty Place		—		—			84,000			—			—			—			84,000
One Market Plaza		—		—			—			857,893			—			—			857,893
1899 Pennsylvania Avenue		—		—			—			—			88,762			—			88,762
1633 Broadway		—		—			—			—			—			1,013,544			1,013,544
Revolving Credit Facility		—		—			40,000			—			—			—			40,000
Total consolidated debt		—		897,827			124,000			857,893			88,762			1,013,544			2,982,026
Noncontrolling interest’s share		—		—			—			(437,525	)		—			—			(437,525	)
Pro rata share of consolidated debt	$	—	$	897,827		$	124,000		$	420,368		$	88,762		$	1,013,544		$	2,544,501
Unconsolidated Joint Venture Debt:
712 Fifth Avenue	$	—	$	—		$	246,500		$	—		$	—		$	—		$	246,500
Oder-Center, Germany		—		—			—			—			—			23,215			23,215
Total unconsolidated debt		—		—			246,500			—			—			23,215			269,715
Joint venture partners’ share		—		—			(123,250	)		—			—			(21,010	)		(144,260	)
Pro rata share of unconsolidated debt	$	—	$	—		$	123,250		$	—		$	—		$	2,205		$	125,455
Pro rata share of total debt	$	—	$	897,827		$	247,250		$	420,368		$	88,762		$	1,015,749		$	2,669,956
Weighted average rate		—		4.59	%		3.91	%		6.14	%		4.88	%		3.52	%		4.37	%
% of Debt Maturing		—		33.6	%		9.3	%		15.7	%		3.3	%		38.1	%		100.0	%

⁽¹⁾  On May 3, 2016, we completed a $500,000 refinancing of 31 West 52nd Street. The new 10 year loan is interest only at a fixed rate of 3.80%. We realized net proceeds of approximately $65,000 after the repayment of the existing loan, swap breakage costs and closing costs.

- 24 -

	PORTFOLIO SUMMARY
(unaudited)

		%			Square		%			%			Annualized Rent (2)
Property	Submarket	Ownership			Feet (1)		Leased (2)			Occupied (2)			Amount		Per Square Foot (3)
As of March 31, 2016
New York:
1633 Broadway	West Side		100.0	%		2,643,065		92.4	%		90.4	%	$	156,347,000	$	70.83
1301 Avenue of the Americas	Sixth Ave / Rock Center		100.0	%		1,767,992		97.0	%		95.6	%		127,765,000		76.23
1325 Avenue of the Americas	Sixth Ave / Rock Center		100.0	%		814,892		96.9	%		94.6	%		50,475,000		67.67
31 West 52nd Street	Sixth Ave / Rock Center		100.0	%		786,647		100.0	%		100.0	%		60,311,000		79.11
900 Third Avenue	East Side		100.0	%		596,270		96.0	%		96.0	%		41,875,000		73.88
712 Fifth Avenue	Madison / Fifth Ave		50.0	%		543,341		98.5	%		98.5	%		55,704,000		104.61
Subtotal / Weighted Average						7,152,207		95.7	%		94.3	%		492,477,000		75.95
Washington, D.C.:
Waterview	Rosslyn, VA		100.0	%		647,243		98.9	%		98.9	%		34,508,000		52.29
425 Eye Street	East End		100.0	%		380,090		97.3	%		96.5	%		16,274,000		45.37
2099 Pennsylvania Avenue	CBD		100.0	%		208,636		62.0	%		62.0	%		10,034,000		77.32
1899 Pennsylvania Avenue	CBD		100.0	%		192,481		98.3	%		98.3	%		14,696,000		78.57
Liberty Place	East End		100.0	%		174,205		88.4	%		81.0	%		10,939,000		77.01
Subtotal / Weighted Average						1,602,655		92.5	%		91.5	%		86,451,000		58.55
San Francisco:
One Market Plaza	South Financial District		49.0	%		1,611,125		98.3	%		97.2	%		99,427,000		64.61
Total / Weighted Average						10,365,987		95.6	%		94.3	%	$	678,355,000	$	71.44

⁽¹⁾  Represents the remeasured square feet, which includes an aggregate of 163,740 square feet of either Real Estate Board of New York (“REBNY”) or Building Owners and Managers Association (“BOMA”) remeasurement adjustments that are not reflected in current leases.

⁽²⁾  See page 37 for our definition of this measure.

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

- 25 -

	TOP TENANTS AND INDUSTRY DIVERSIFICATION
(unaudited)

	Lease Expiration			Square Feet Occupied			% of Total Square Feet			Annualized Rent (1)				% of Annualized Rent
Top 10 Tenants:										Amount		Per Square Foot
As of March 31, 2016
The Corporate Executive Board Company		Jan-2028			625,062			6.0	%	$	32,601,000	$	52.16		4.8	%
Barclays Capital, Inc.		Dec-2020			497,418			4.8	%		31,521,000		63.37		4.6	%
Allianz Global Investors, LP		Jan-2031	(2)		326,457	(2)		3.1	%		27,770,000		85.06		4.1	%
Clifford Chance LLP		Jun-2024			328,992			3.2	%		25,494,000		77.49		3.8	%
Credit Agricole Corporate & Investment Bank		Feb-2023			311,291			3.0	%		24,726,000		79.43		3.6	%
Commerzbank AG		May-2016	(3)		287,535	(3)		2.8	%		24,267,000		84.40		3.6	%
Morgan Stanley & Company		Mar-2032	(4)		312,885	(4)		3.0	%		22,070,000		70.54		3.3	%
Google, Inc.		Apr-2025			275,822			2.7	%		17,707,000		64.20		2.6	%
Deloitte & Touche, LLP		Mar-2016			212,052			2.0	%		16,727,000		78.88		2.5	%
WMG Acquisition Corp. (Warner Music Group)		Jul-2029			293,487			2.8	%		16,301,000		55.54		2.4	%

	Square Feet		% of Occupied			Annualized		% of Annualized
Industry Diversification:	Occupied		Square Feet			Rent		Rent
As of March 31, 2016
Financial Services - Commercial and Investment Banking		1,912,878		19.9	%	$	140,383,000		20.7	%
Legal Services		1,762,397		18.4	%		129,472,000		19.1	%
Financial Services - All other		1,608,259		16.8	%		128,851,000		19.0	%
Technology and Media		1,433,307		14.9	%		91,885,000		13.5	%
Insurance		338,399		3.5	%		28,468,000		4.2	%
Retail		317,681		3.3	%		27,064,000		4.0	%
Accounting		275,263		2.9	%		20,709,000		3.1	%
Government		334,985		3.5	%		15,906,000		2.3	%
Real Estate		205,835		2.1	%		15,657,000		2.3	%
Other		1,401,534		14.7	%		79,960,000		11.8	%

⁽¹⁾  See page 37 for our definition of this measure.

⁽²⁾  5,546 of the square feet leased expires in December 2016.

⁽³⁾  As of March 31, 2016, 144,712 of this square footage has been leased to other tenants pursuant to signed leases that are expected to commence following the May 2016 expiration.

⁽⁴⁾  52,056 of the square feet leased expires in June 2017.

- 26 -

	LEASING ACTIVITY
(unaudited)

	Total			New York			Washington, D.C.			San Francisco
Three Months Ended March 31, 2016:
Total square feet leased		154,951			97,025			38,145			19,781
Pro rata share of total square feet leased:		140,301			92,463			38,145			9,693
Initial rent (1)	$	78.68		$	81.09		$	71.60		$	85.27
Weighted average lease term (in years)		7.7			8.7			5.5			7.2
Tenant improvements and leasing commissions:
Per square foot	$	52.94		$	52.58		$	54.77		$	47.70
Per square foot per annum	$	6.83		$	6.05		$	9.88		$	6.64
Percentage of initial rent		8.7	%		7.5	%		13.8	%		7.8	%
Rent concessions:
Average free rent period (in months)		8.0			10.2			3.8			1.6
Average free rent period per annum (in months)		1.0			1.2			0.7			0.2
Second generation space: (1)
Square feet		100,343			89,173			3,933			7,237
Cash basis:
Initial rent (1)	$	81.67		$	81.46		$	79.82		$	85.27
Prior escalated rent	$	82.71		$	84.77		$	78.95		$	59.06
Percentage (decrease) increase		(1.3	%) (2)		(3.9	%) (2)		1.1	%		44.4	%
GAAP basis:
Straight-line rent	$	79.79		$	78.79		$	80.13		$	92.19
Prior straight-line rent	$	71.12		$	70.13		$	80.10		$	78.49
Percentage increase		12.2	% (2)		12.3	% (2)		0.0	%		17.5	%

⁽¹⁾ See page 37 for our definition of this measure.

⁽²⁾ Includes the effect of a 52,555 square foot above-market lease at 1633 Broadway that was terminated in February 2016 and re-leased in March 2016. Excluding the impact of this lease, the percentage increase in Cash basis and GAAP basis rents was 27.0% and 38.2%, respectively, for our New York portfolio and 26.8% and 30.0%, respectively, for the total portfolio.

- 27 -

	LEASE EXPIRATIONS
(unaudited)

Year of	Square Feet		Annualized Rent (1)				% of Consolidated
Lease Expiration (2)	of Expiring Leases		Amount		Per Square Foot (3)		Annualized Rent
Month to Month		3,397	$	411,000	$	—		0.1	%
2Q 2016		360,440		29,604,000		81.59		4.3	%
3Q 2016		130,070		9,193,000		70.72		1.3	%
4Q 2016		32,676		2,915,000		91.07		0.4	%
Total 2016		523,186		41,712,000		79.47		6.0	%
1Q 2017		315,186		21,940,000		70.33		3.2	%
Remaining 2017		218,093		17,483,000		80.63		2.5	%
Total 2017		533,279		39,423,000		74.55		5.7	%
2018		323,095		25,623,000		79.27		3.7	%
2019		519,281		39,226,000		75.87		5.7	%
2020		471,419		33,291,000		79.14		4.8	%
2021		1,576,270		96,821,000		62.31		14.1	%
2022		428,874		28,217,000		75.30		4.1	%
2023		697,958		55,001,000		79.27		8.0	%
2024		633,978		49,322,000		77.99		7.2	%
2025		473,986		34,964,000		73.90		5.1	%
Thereafter		3,523,988		242,454,000		68.41		35.5	%

⁽¹⁾ See page 37 for our definition of this measure.

⁽²⁾ Leases that expire on the last day of the quarter are treated as occupied and are reflected as expiring space in the following quarter.

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

- 28 -

	LEASE EXPIRATIONS - NEW YORK
(unaudited)

Year of	Square Feet		Annualized Rent (1)				% of New York
Lease Expiration (2)	of Expiring Leases		Amount		Per Square Foot (3)		Annualized Rent
Month to Month		575	$	110,000	$	—		0.0	%
2Q 2016		358,220		29,267,000		81.68		5.8	%
3Q 2016		128,740		9,113,000		70.80		1.8	%
4Q 2016		28,351		2,572,000		90.73		0.5	%
Total 2016		515,311		40,952,000		79.46		8.1	%
1Q 2017		309,640		21,667,000		70.72		4.3	%
Remaining 2017		170,511		14,679,000		86.74		2.9	%
Total 2017		480,151		36,346,000		76.42		7.2	%
2018		233,554		20,112,000		86.05		4.0	%
2019		244,340		21,305,000		89.02		4.3	%
2020		339,831		24,041,000		83.51		4.8	%
2021		945,543		64,226,000		70.15		12.8	%
2022		159,107		9,614,000		110.55		1.9	%
2023		557,742		43,734,000		78.90		8.7	%
2024		551,909		43,008,000		78.15		8.6	%
2025		104,011		8,980,000		86.34		1.8	%
Thereafter		2,601,703		188,088,000		72.40		37.8	%

⁽¹⁾ See page 37 for our definition of this measure.

⁽²⁾ Leases that expire on the last day of the quarter are treated as occupied and are reflected as expiring space in the following quarter.

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

- 29 -

	LEASE EXPIRATIONS - WASHINGTON, D.C.
(unaudited)

Year of	Square Feet		Annualized Rent (1)				% of Washington, D.C.
Lease Expiration (2)	of Expiring Leases		Amount		Per Square Foot (3)		Annualized Rent
Month to Month		—	$	—	$	—		—
2Q 2016		2,132		335,000		69.83		0.4	%
3Q 2016		—		—		—		—
4Q 2016		—		—		—		—
Total 2016		2,132		335,000		69.83		0.4	%
1Q 2017		—		—		—		—
Remaining 2017		—		—		—		—
Total 2017		—		—		—		—
2018		—		—		—		—
2019		42,081		3,304,000		74.37		3.8	%
2020		33,721		2,461,000		73.00		2.8	%
2021		311,622		15,187,000		47.16		17.4	%
2022		33,002		1,794,000		54.37		2.1	%
2023		140,216		11,267,000		80.73		12.9	%
2024		75,677		5,742,000		75.87		6.6	%
2025		56,124		4,239,000		75.54		4.8	%
Thereafter		751,991		43,048,000		55.05		49.2	%

⁽¹⁾ See page 37 for our definition of this measure.

⁽²⁾ Leases that expire on the last day of the quarter are treated as occupied and are reflected as expiring space in the following quarter.

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

- 30 -

LEASE EXPIRATIONS - SAN FRANCISCO

(unaudited)

Year of	Square Feet		Annualized Rent (1)				% of San Francisco
Lease Expiration (2)	of Expiring Leases		Amount		Per Square Foot (3)		Annualized Rent
Month to Month		2,822	$	301,000	$	—		0.3	%
2Q 2016		88		2,000		27.27		0.0	%
3Q 2016		1,330		80,000		62.88		0.1	%
4Q 2016		4,325		343,000		93.85		0.3	%
Total 2016		5,743		425,000		84.57		0.4	%
1Q 2017		5,546		273,000		49.16		0.3	%
Remaining 2017		47,582		2,804,000		58.94		2.8	%
Total 2017		53,128		3,077,000		57.92		3.1	%
2018		89,541		5,511,000		61.59		5.6	%
2019		232,860		14,617,000		62.77		14.8	%
2020		97,867		6,789,000		69.37		6.9	%
2021		319,105		17,408,000		54.85		17.7	%
2022		236,765		16,809,000		70.99		17.1	%
2023		—		—		—		—
2024		6,392		572,000		89.44		0.6	%
2025		313,851		21,745,000		69.45		22.0	%
Thereafter		170,294		11,318,000		66.89		11.5	%

⁽¹⁾ See page 37 for our definition of this measure.

⁽²⁾ Leases that expire on the last day of the quarter are treated as occupied and are reflected as expiring space in the following quarter.

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

- 31 -

CONSOLIDATED CAPITAL EXPENDITURES - CASH BASIS

(unaudited and in thousands)

	Three Months Ended
	March 31, 2016		March 31, 2015		December 31, 2015
Capital expenditures to maintain assets:
Recurring (1)	$	4,541	$	3,754	$	5,549
Non-recurring (1)		—		—		—
Total capital expenditures to maintain assets	$	4,541	$	3,754	$	5,549
Tenant improvements:
Recurring (1)	$	13,576	$	10,795	$	10,064
Non-recurring (1)		6,031		1,693		14,470
Total tenant improvements	$	19,607	$	12,488	$	24,534
Leasing commissions:
Recurring (1)	$	2,311	$	3,544	$	25,712
Non-recurring (1)		915		2,587		7,890
Total leasing commissions	$	3,226	$	6,131	$	33,602
Total capital expenditures, tenant improvements and leasing commissions:
Total recurring (1)	$	20,428	$	18,093	$	41,325
Total non-recurring (1)		6,946		4,280		22,360
Total capital expenditures, tenant improvements and leasing commissions	$	27,374	$	22,373	$	63,685
Development expenditures: (1)
One Market Plaza—Lobby and Retail repositioning	$	4,460	$	5,301	$	3,973
1633 Broadway—Plaza and Retail development (2)		3,043		93		3,940
Residential Development Fund		1,152		—		708
Other		391		—		—
Total development expenditures	$	9,046	$	5,394	$	8,621

⁽¹⁾ See page 37 for our definition of this measure.

⁽²⁾ Of the $15,000 budget, $11,711 has been expended as of March 31, 2016.

- 32 -

CAPITAL EXPENDITURES - NEW YORK - CASH BASIS

(unaudited and in thousands)

	Three Months Ended
	March 31, 2016		March 31, 2015		December 31, 2015
Capital expenditures to maintain assets:
Recurring (1)	$	2,529	$	1,335	$	2,568
Non-recurring (1)		—		—		—
Total capital expenditures to maintain assets	$	2,529	$	1,335	$	2,568
Tenant improvements:
Recurring (1)	$	11,689	$	10,468	$	4,872
Non-recurring (1)		3,911		1,419		10,617
Total tenant improvements	$	15,600	$	11,887	$	15,489
Leasing commissions:
Recurring (1)	$	687	$	2,102	$	18,976
Non-recurring (1)		659		—		4,027
Total leasing commissions	$	1,346	$	2,102	$	23,003
Total capital expenditures, tenant improvements and leasing commissions:
Total recurring (1)	$	14,905	$	13,905	$	26,416
Total non-recurring (1)		4,570		1,419		14,644
Total capital expenditures, tenant improvements and leasing commissions	$	19,475	$	15,324	$	41,060
Development expenditures: (1)
1633 Broadway—Plaza and Retail development (2)	$	3,043	$	93	$	3,940
Other		391		—		—
Total development expenditures	$	3,434	$	93	$	3,940

⁽¹⁾ See page 37 for our definition of this measure.

⁽²⁾ Of the $15,000 budget, $11,711 has been expended as of March 31, 2016.

- 33 -

CAPITAL EXPENDITURES - WASHINGTON, D.C. - CASH  BASIS

(unaudited and in thousands)

	Three Months Ended
	March 31, 2016		March 31, 2015		December 31, 2015
Capital expenditures to maintain assets:
Recurring (1)	$	800	$	1,694	$	1,423
Non-recurring (1)		—		—		—
Total capital expenditures to maintain assets	$	800	$	1,694	$	1,423
Tenant improvements:
Recurring (1)	$	391	$	38	$	590
Non-recurring (1)		2,120		274		3,853
Total tenant improvements	$	2,511	$	312	$	4,443
Leasing commissions:
Recurring (1)	$	—	$	731	$	334
Non-recurring (1)		256		2,587		3,863
Total leasing commissions	$	256	$	3,318	$	4,197
Total capital expenditures, tenant improvements and leasing commissions:
Total recurring (1)	$	1,191	$	2,463	$	2,347
Total non-recurring (1)		2,376		2,861		7,716
Total capital expenditures, tenant improvements and leasing commissions	$	3,567	$	5,324	$	10,063

⁽¹⁾ See page 37 for our definition of this measure.

- 34 -

	CAPITAL EXPENDITURES - SAN FRANCISCO - CASH BASIS
(unaudited and in thousands)

	Three Months Ended
	March 31, 2016		March 31, 2015		December 31, 2015
Capital expenditures to maintain assets:
Recurring (1)	$	750	$	725	$	1,260
Non-recurring (1)		—		—		—
Total capital expenditures to maintain assets	$	750	$	725	$	1,260
Tenant improvements:
Recurring (1)	$	1,496	$	289	$	4,602
Non-recurring (1)		—		—		—
Total tenant improvements	$	1,496	$	289	$	4,602
Leasing commissions:
Recurring (1)	$	639	$	711	$	3,060
Non-recurring (1)		—		—		—
Total leasing commissions	$	639	$	711	$	3,060
Total capital expenditures, tenant improvements and leasing commissions:
Total recurring (1)	$	2,885	$	1,725	$	8,922
Total non-recurring (1)		—		—		—
Total capital expenditures, tenant improvements and leasing commissions	$	2,885	$	1,725	$	8,922
Development expenditures: (1)
One Market Plaza—Lobby and Retail repositioning	$	4,460	$	5,301	$	3,973

⁽¹⁾  See page 37 for our definition of this measure.

- 35 -

	CAPITAL EXPENDITURES - OTHER - CASH BASIS
(unaudited and in thousands)

	Three Months Ended
	March 31, 2016		March 31, 2015		December 31, 2015
Capital expenditures to maintain assets:
Recurring (1)	$	462	$	—	$	298
Non-recurring (1)		—		—		—
Total capital expenditures to maintain assets	$	462	$	—	$	298
Tenant improvements:
Recurring (1)	$	—	$	—	$	—
Non-recurring (1)		—		—		—
Total tenant improvements	$	—	$	—	$	—
Leasing commissions:
Recurring (1)	$	985	$	—	$	3,342
Non-recurring (1)		—		—
Total leasing commissions	$	985	$	—	$	3,342
Total capital expenditures, tenant improvements and leasing commissions:
Total recurring (1)	$	1,447	$	—	$	3,640
Total non-recurring (1)		—		—		—
Total capital expenditures, tenant improvements and leasing commissions	$	1,447	$	—	$	3,640
Development expenditures: (1)
Residential Development Fund	$	1,152	$	—	$	708

⁽¹⁾  See page 37 for our definition of this measure.

- 36 -

DEFINITIONS

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. 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 gain on sales, which are based on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions. FFO attributable to common stockholders represents the pro rata share of FFO that is attributable to common stockholders and is calculated by reducing noncontrolling interests in consolidated joint ventures, real estate funds and Operating Partnership’s pro rata share of FFO from FFO.

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

Core Funds from Operations (“Core FFO”) is calculated by adjusting FFO for certain other items, including acquisition and transaction related costs , severance costs and unrealized gains or losses on interest rate swaps, including our share of such adjustments of unconsolidated joint ventures. We present Core FFO as an alternative measure of our operating performance, which adjusts FFO for items that we believe enhance the comparability of our FFO across periods. In future periods, we may also exclude other items from Core FFO that we believe may help investors compare our results. Core FFO attributable to common stockholders represents the pro rata share of Core FFO that is attributable to common stockholders and is calculated by reducing noncontrolling interests in consolidated joint ventures, real estate funds and in Operating Partnership’s pro rata share of Core FFO from Core FFO.

Core FFO Payout Ratio is calculated as dividends per share divided by Core 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 gain 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. FAD is commonly used in the real estate industry as a measure of the ability to fund cash needs and make dividend payments. FAD does not represent cash generated from operating activities determined in accordance with GAAP, as presented in our consolidated statements of cash flow and may not be comparable to other real estate companies. FAD attributable to common stockholders represents the pro rata share of FAD that is attributable to common stockholders and is calculated by reducing noncontrolling interests in consolidated joint ventures, real estate funds and in Operating Partnership’s pro rata share of FAD from FAD.

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

Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) is calculated as net income plus interest expense, income taxes, depreciation and amortization expenses. We present EBITDA because we believe that EBITDA, along with cash flow from operating activities, investing activities and financing activities, provides investors with an additional indicator of its ability to incur and service debt. EBITDA should not be considered as an alternative to net income (determined in accordance with GAAP), as an indication of our financial performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP), or as a measure of its liquidity.

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) is calculated by adjusting EBITDA to eliminate the impact of the performance of our real estate funds, gains and losses on interest rate swaps, acquisition and transaction costs and certain other items that may vary from period to period. We also present our pro rata share of Adjusted EBITDA, which represents our share of the Adjusted EBITDA generated by our consolidated and unconsolidated operating assets based on our percentage ownership of such assets. Adjusted EBITDA helps compare our operating performance from period to period by removing from our operating results the impact of our capital structure (primarily interest charges from our consolidated outstanding debt and the impact of our interest rate swaps), certain non-cash expenses (primarily depreciation and amortization on our assets), the formation and performance of our real estate funds and acquisition and transaction costs that may vary from period to period. In future periods, we may also exclude other items from Adjusted EBITDA that we believe may help investors compare our results. Adjusted EBITDA should not be considered as an alternative to net income (loss) determined in accordance with GAAP. Other real estate companies may use different methodologies for calculating Adjusted EBITDA or similar metrics, and accordingly, our presentation of Adjusted EBITDA may not be comparable to other real estate companies.

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DEFINITIONS - CONTINUED

Net Operating Income (“NOI”) is a metric we use to measure the operating performance of our properties, and consists of property-related revenue (which includes rental income, tenant reimbursement income and certain other income) less operating expenses (which includes building expenses such as cleaning, security, repairs and maintenance, utilities, property administration and real estate taxes). We also present Cash NOI which deducts from NOI, straight-line rent adjustments and the amortization of above and below-market leases, net. 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. NOI and Cash NOI are metrics we use to measure the operating performance of our properties. We use these metrics internally as performance measures and believe they provide useful information to investors regarding our financial condition and results of operations because they reflect only those income and expense items that are incurred at property level. Other real estate companies may use different methodologies for calculating NOI and Cash NOI, and accordingly, our presentation of NOI and Cash NOI may not be comparable to other real estate companies.

Same Store NOI is used to measure the operating performance of our properties that were owned by us in a similar manner during both the current year and prior year reporting periods. Same Store NOI includes our share of NOI from unconsolidated joint ventures. We also present Same Store Cash NOI, which excludes the effect of non-cash items such as the straight-lining of rental revenue and the amortization of above and below market leases.

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

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

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

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.

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

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.

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