Paramount (PGRE) 8-K Paramount Announces Third Quarter 2018 Results

Exhibit 99.2

SUPPLEMENTAL OPERATING AND FINANCIAL DATA

FOR THE QUARTER ENDED SEPTEMBER 30, 2018

FORWARD-LOOKING STATEMENTS

This supplemental information containsforward-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 onforward-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, including changes to tax laws and regulations, 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 anyforward-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
Guidance		6
Financial Highlights		7
Consolidated Balance Sheets		8
Consolidated Statements of Income		9
Select Income Statement Data		10
Funds From Operations (“FFO”)		11
Funds Available for Distribution (“FAD”)		12
Earnings Before Interest, Taxes, Depreciation and Amortization for Real  Estate (“EBITDAre”)		13
Net Operating Income (“NOI”)		14 - 16
Same Store Results		17 - 20
Consolidated Joint Ventures and Fund		21 - 23
Unconsolidated Joint Ventures		24 - 26
Unconsolidated Funds Summary		27
Capital Structure		28
Debt Analysis		29
Debt Maturities		30
Selected Property Data
Portfolio Summary		31
Same Store Leased Occupancy		32 - 33
Top Tenants and Industry Diversification		34
Leasing Activity		35 - 36
Lease Expirations		37 - 40
Cash Basis Capital Expenditures		41 - 42
Definitions		43 - 44

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COMPANY PROFILE

Paramount Group, Inc. (“Paramount”) or the (“Company”) 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 thesought-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
Peter Brindley	Executive Vice President, Leasing
David Zobel	Executive Vice President, Head of Acquisitions

BOARD OF DIRECTORS

Albert Behler	Director, Chairman of the Board
Thomas Armbrust	Director
Martin Bussmann	Director
Dan Emmett	Director, Chair of Nominating and Corporate Governance Committee; Lead Independent Director
Lizanne Galbreath	Director, Chair of Compensation Committee
Karin Klein	Director
Peter Linneman	Director, Chair of Audit Committee
Katharina Otto-Bernstein	Director
Mark Patterson	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 Catherwood	Derek Johnston / Mike Husseini	Steve Sakwa
Bank of America Merrill Lynch	BTIG	Deutsche Bank	Evercore ISI
(646) 855-5808	(212) 738-6140	(904) 520-4973 /(212) 250-7703	(212) 446-9462
james.feldman@baml.com	tcatherwood@btig.com	derek.johnston@db.com /	steve.sakwa@evercoreisi.com
		mike.husseini@db.com
Andrew Rosivach	Daniel Ismail	Richard Anderson	Vikram Malhotra
Goldman Sachs	Green Street Advisors	Mizuho Securities USA Inc.	Morgan Stanley
(212) 902-2796	(949) 640-8780	(212) 205-8445	(212) 761-7064
andrew.rosivach@gs.com	dismail@greenst.com	richard.anderson@us.mizuho-sc.com	vikram.malhotra@morganstanley.com
Frank Lee	Blaine Heck
UBS	Wells Fargo
(415) 352-5679	(443) 263-6529
frank-a.lee@ubs.com	blaine.heck@wellsfargo.com

⁽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 such analysts.

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GUIDANCE

(unaudited and in thousands, except square feet, % and per share amounts)

	Full Year 2018
(Amounts per diluted share)	Low			High
Estimated net income attributable to common stockholders	$	0.03		$	0.05
Our share of depreciation and amortization		0.86			0.86
Real estate impairment loss		0.17			0.17
Gain on sale of real estate		(0.14	)		(0.14	)
Estimated FFO		0.92			0.94
Adjustments for non-core items (1)		0.01			0.01
Estimated Core FFO (2)	$	0.93		$	0.95
Operating Assumptions:
Leasing Activity (square feet)		900,000			1,000,000
PGRE’s share of Same Store Leased % (3)at year end		96.0	%		97.0	%
Increase in PGRE’s share of Same Store Cash NOI (3)		8.0	%		10.0	%
Increase in PGRE’s share of Same Store NOI (3)		8.0	%		10.0	%
Financial Assumptions (at share):
Estimated net income	$	7,500		$	14,500
Depreciation and amortization		227,000			227,000
General and administrative expenses		58,500			57,500
Interest and debt expense, including amortization deferred financing costs		128,500			127,500
Fee income, net of income taxes		(15,500	)		(16,500	)
Real estate impairment loss		46,000			46,000
Gain on sale of real estate		(37,000	)		(37,000	)
Other, net (primarily interest income)		(2,500	)		(3,500	)
NOI (3)		412,500			415,500
Straight-line rent and above  and below-market lease revenue, net		(61,500	)		(62,500	)
Cash NOI (3)	$	351,000		$	353,000

⁽¹⁾  Representsnon-core items for the nine months ended September 30, 2018, which are summarized on page 11. We are not making projections fornon-core items that may impact our financial results for the remainder of 2018, which may include realized and unrealized gains or losses from unconsolidated real estate funds, transaction related costs, “sting” taxes and other items that are not included in Core FFO.

⁽²⁾  We are updating our Estimated Core FFO Guidance for the full year of 2018, which is reconciled above to estimated net income attributable to common stockholders per diluted share in accordance with GAAP. The estimated net income attributable to common stockholders 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. 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 our earnings release issued on November 5, 2018 and otherwise referenced during our conference call scheduled for November 5, 2018. These estimates do not include the impact on operating results from possible future property acquisitions or dispositions, capital markets activity or realized and 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 thestraight-lining of rental income and the amortization of above and below-market leases. There can be no assurance that our actual results will not differ materially from the estimates set forth above.

⁽³⁾  See page 43 for our definition of this measure.

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FINANCIAL HIGHLIGHTS

(unaudited and in thousands, except per share amounts)

	Three Months Ended								Nine Months Ended
SELECTED FINANCIAL DATA	September 30, 2018		September 30, 2017			June 30, 2018			September 30, 2018		September 30, 2017
Net income (loss) attributable to common stockholders	$	37,531	$	(10,214	)	$	(34,816	)	$	3,829	$	93,174
Per share- basic and diluted	$	0.16	$	(0.04	)	$	(0.14	)	$	0.02	$	0.40
Core FFO attributable to common stockholders(1)	$	57,748	$	52,369		$	57,899		$	170,610	$	158,439
Per share- diluted	$	0.24	$	0.22		$	0.24		$	0.71	$	0.67
PGRE’s share of Cash NOI (1)	$	88,717	$	83,813		$	88,488		$	263,152	$	248,366
PGRE’s share of NOI (1)	$	104,858	$	95,337		$	106,246		$	311,684	$	295,907

Same Store Cash NOI	% Change
Three Months Ended September 30, 2018 vs. September 30, 2017		7.2	%
Nine Months Ended September 30, 2018 vs. September 30, 2017		9.2	%

Same Store NOI	% Change
Three Months Ended September 30, 2018 vs. September 30, 2017		11.1	%
Nine Months Ended September 30, 2018 vs. September 30, 2017		7.9	%

PORTFOLIO STATISTICS

	As of
	September 30, 2018			June 30, 2018			March 31, 2018			December 31, 2017			September 30, 2017
Leased % (1)		96.4	%		96.4	%		94.0	%		93.5	%		92.3	%

Same Store Leased %	% Change
September 30, 2018 vs. June 30, 2018		0.0	%
September 30, 2018 vs. December 31, 2017		3.1	%

COMMON SHARE DATA

	Three Months Ended
	September 30, 2018			June 30, 2018			March 31, 2018			December 31, 2017			September 30, 2017
Share Price:
High	$	16.05		$	15.63		$	15.89		$	16.61		$	16.79
Low	$	14.83		$	13.85		$	13.70		$	15.49		$	15.14
Closing (end of period)	$	15.09		$	15.40		$	14.24		$	15.85		$	16.00
Dividends per common share	$	0.100		$	0.100		$	0.100		$	0.095		$	0.095
Annualized dividends per common share	$	0.400		$	0.400		$	0.400		$	0.380		$	0.380
Dividend yield (on closing share price)		2.7	%		2.6	%		2.8	%		2.4	%		2.4	%

⁽¹⁾ See page 43 for our definition of this measure.

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CONSOLIDATED BALANCE SHEETS

(unaudited and in thousands)

	September 30, 2018			December 31, 2017
ASSETS:
Real estate, at cost
Land	$	2,065,206		$	2,209,506
Buildings and improvements		5,998,805			6,119,969
		8,064,011			8,329,475
Accumulated depreciation and amortization		(598,756	)		(487,945	)
Real estate, net		7,465,255			7,841,530
Cash and cash equivalents		538,725			219,381
Restricted cash		30,902			31,044
Investments in unconsolidated joint ventures		75,255			44,762
Investments in unconsolidated real estate funds		9,007			7,253
Preferred equity investments, net		35,983			35,817
Marketable securities		26,668			29,039
Accounts and other receivables, net		16,205			17,082
Deferred rent receivable		254,002			220,826
Deferred charges, net		111,870			98,645
Intangible assets, net		287,222			352,206
Other assets		90,143			20,076
Total Assets	$	8,941,237		$	8,917,661
LIABILITIES:
Notes and mortgages payable, net	$	3,564,688		$	3,541,300
Revolving credit facility		—			—
Due to affiliates		27,299			27,299
Accounts payable and accrued expenses		133,995			117,630
Dividends and distributions payable		26,596			25,211
Intangible liabilities, net		102,279			130,028
Other liabilities		56,968			54,109
Total Liabilities		3,911,825			3,895,577
EQUITY:
Paramount Group, Inc. equity		4,133,393			4,176,741
Noncontrolling interests in:
Consolidated joint ventures		399,934			404,997
Consolidated real estate fund		66,099			14,549
Operating Partnership		429,986			425,797
Total Equity		5,029,412			5,022,084
Total Liabilities and Equity	$	8,941,237		$	8,917,661

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CONSOLIDATED STATEMENTS OF INCOME

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

	Three Months Ended									Nine Months Ended
	September 30, 2018			September 30, 2017			June 30, 2018			September 30, 2018			September 30, 2017
REVENUES:
Property rentals	$	148,359		$	141,801		$	148,486		$	442,586		$	412,268
Straight-line rent adjustments		15,688			11,408			16,739			45,671			43,529
Amortization of above andbelow-market leases, net		3,887			3,175			4,304			12,611			14,164
Rental income		167,934			156,384			169,529			500,868			469,961
Tenant reimbursement income		15,579			14,053			13,164			42,989			38,761
Fee income (see details on page 10)		4,079			5,834			5,409			12,953			19,838
Other income (see details on page 10)		5,004			3,499			3,317			11,476			10,150
Total revenues		192,596			179,770			191,419			568,286			538,710
EXPENSES:
Operating		69,811			68,264			67,646			206,435			197,696
Depreciation and amortization		64,610			66,515			64,775			194,541			198,143
General and administrative (see details on page 10)		14,452			14,470			17,195			44,278			44,624
Transaction related costs		450			274			293			863			1,051
Real estate impairment loss		—			—			46,000			46,000			—
Total expenses		149,323			149,523			195,909			492,117			441,514
Operating income (loss)		43,273			30,247			(4,490	)		76,169			97,196
Income from unconsolidated joint ventures		472			671			2,521			2,931			19,143
Loss from unconsolidated real estate funds		(188	)		(3,930	)		(14	)		(268	)		(6,053	)
Interest and other income (loss), net (see details on page 10)		2,778			(17,668	)		2,094			6,888			(11,982	)
Interest and debt expense (see details on page 10)		(37,105	)		(35,733	)		(36,809	)		(109,996	)		(107,568	)
Loss on early extinguishment of debt		—			—			—			—			(7,877	)
Gain on sale of real estate		36,845			—			—			36,845			133,989
Unrealized gain on interest rate swaps		—			—			—			—			1,802
Net income (loss) before income taxes		46,075			(26,413	)		(36,698	)		12,569			118,650
Income tax (expense) benefit		(1,814	)		1,010			120			(2,171	)		(4,242	)
Net income (loss)		44,261			(25,403	)		(36,578	)		10,398			114,408
Less net (income) loss attributable to noncontrolling interests in:
Consolidated joint ventures		(2,713	)		14,217			(1,752	)		(5,520	)		11,029
Consolidated real estate fund		(86	)		(114	)		(152	)		(668	)		(20,195	)
Operating Partnership		(3,931	)		1,086			3,666			(381	)		(12,068	)
Net income (loss) attributable to common stockholders	$	37,531		$	(10,214	)	$	(34,816	)	$	3,829		$	93,174
Per diluted share	$	0.16		$	(0.04)		$	(0.14)		$	0.02		$	0.40
Capitalized internal leasing costs	$	1,169		$	1,491		$	1,375		$	4,276		$	4,488

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SELECT INCOME STATEMENT DATA

(unaudited and in thousands)

	Three Months Ended							Nine Months Ended
	September 30, 2018		September 30, 2017			June 30, 2018		September 30, 2018		September 30, 2017
Fee Income:
Property management	$	1,476	$	1,673		$	1,490	$	4,468	$	4,815
Asset management		2,222		1,997			1,823		5,655		6,622
Acquisition and disposition		—		1,475			1,750		1,750		7,045
Other		381		689			346		1,080		1,356
Total fee income	$	4,079	$	5,834		$	5,409	$	12,953	$	19,838
	Three Months Ended							Nine Months Ended
	September 30, 2018		September 30, 2017			June 30, 2018		September 30, 2018		September 30, 2017
Other Income:
Lease termination income	$	1,561	$	954		$	29	$	1,618	$	1,915
Other (primarily parking income and tenant requested services, including overtime heating and cooling)		3,443		2,545			3,288		9,858		8,235
Total other income	$	5,004	$	3,499		$	3,317	$	11,476	$	10,150
	Three Months Ended							Nine Months Ended
	September 30, 2018		September 30, 2017			June 30, 2018		September 30, 2018		September 30, 2017
General and Administrative
Cash general and administrative	$	9,132	$	9,833		$	12,346	$	27,753	$	29,396
Non-cash general and administrative- stock based compensation expense		4,330		3,825			4,650		15,245		11,692
Mark-to-market of deferred compensation plan liabilities (offset by an increase in themark-to-market of plan assets, which is included in “interest and other income (loss)”)		990		812			199		1,280		3,536
Total general and administrative	$	14,452	$	14,470		$	17,195	$	44,278	$	44,624
	Three Months Ended							Nine Months Ended
	September 30, 2018		September 30, 2017			June 30, 2018		September 30, 2018		September 30, 2017
Interest and Other Income (loss):
Preferred equity investment income (1)	$	930	$	961		$	917	$	2,746	$	3,327
Interest and other income		858		147			978		2,862		743
Mark-to-market of deferred compensation plan assets (offset by an increase in themark-to-market of plan liabilities, which is included in “general and administrative” expenses)		990		812			199		1,280		3,536
Valuation allowance on preferred equity investment (2)		—		(19,588	)		—		—		(19,588	)
Total interest and other income (loss), net	$	2,778	$	(17,668)		$	2,094	$	6,888	$	(11,982)

⁽¹⁾ Represents 100% of the investment income from PGRESS Equity Holdings, L.P., of which our 24.4% share is $227, $243 and $223 for the three months ended September 30, 2018 and 2017, and June 30, 2018, respectively, and $669 and $819 for the nine months ended September 30, 2018 and 2017, respectively.

⁽²⁾ Represents the valuation allowance on 2 Herald Square, our preferred equity investment in PGRESS Equity Holdings, L.P., of which our 24.4% share is $4,780, and $14,808 was attributable to noncontrolling interests. In May 2018, the senior lender foreclosed out our interests and accordingly, we wrote off our preferred equity investment and the related valuation allowance.

	Three Months Ended						Nine Months Ended
	September 30, 2018		September 30, 2017		June 30, 2018		September 30, 2018		September 30, 2017
Interest and Debt Expense:
Interest expense	$	34,353	$	32,914	$	34,055	$	101,729	$	99,201
Amortization of deferred financing costs		2,752		2,819		2,754		8,267		8,367
Total interest and debt expense	$	37,105	$	35,733	$	36,809	$	109,996	$	107,568

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FFO

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

	Three Months Ended									Nine Months Ended
	September 30, 2018			September 30, 2017			June 30, 2018			September 30, 2018			September 30, 2017
Reconciliation of net income (loss) to FFO and Core FFO:
Net income (loss)	$	44,261		$	(25,403)		$	(36,578)		$	10,398		$	114,408
Real estate depreciation and amortization (including our share of unconsolidated joint ventures)		66,533			68,523			66,711			200,404			204,023
Real estate impairment loss		—			—			46,000			46,000			—
Gain on sale of depreciable real estate		(36,845	)		—			—			(36,845	)		(110,583	)
FFO (1)		73,949			43,120			76,133			219,957			207,848
Less FFO attributable to noncontrolling interests in:
Consolidated joint ventures		(12,432	)		5,152			(10,840	)		(33,479	)		(9,783	)
Consolidated real estate fund		(86	)		(114	)		(152	)		(668	)		(20,530	)
FFO attributable to Paramount Group Operating Partnership		61,431			48,158			65,141			185,810			177,535
Less FFO attributable to noncontrolling interests in Operating Partnership		(5,825	)		(4,628	)		(6,206	)		(17,616	)		(20,098	)
FFO attributable to common stockholders(1)	$	55,606		$	43,530		$	58,935		$	168,194		$	157,437
Per diluted share	$	0.23		$	0.18		$	0.25		$	0.70		$	0.67
FFO	$	73,949		$	43,120		$	76,133		$	219,957		$	207,848
Non - core items:
“Sting” taxes in connection with the sale of real estate		1,248			—			—			1,248			—
Transaction related costs		450			274			293			863			1,051
Our share of earnings from 712 Fifth Avenue in excess of distributions received and (distributions in excess of earnings)		398			691			(1,512	)		81			(14,381	)
Realized and unrealized loss from unconsolidated real estate funds		270			4,034			74			475			6,281
Valuation allowance on preferred equity investment		—			19,588			—			—			19,588
After-tax net gain on sale of residential condominium land parcel		—			—			—			—			(21,568	)
Loss on early extinguishment of debt		—			—			—			—			7,877
Unrealized gain on interest rate swaps (including our share of unconsolidated joint ventures)		—			—			—			—			(2,750	)
Core FFO (1)		76,315			67,707			74,988			222,624			203,946
Less Core FFO attributable to noncontrolling interests in:
Consolidated joint ventures		(12,432	)		(9,656	)		(10,840	)		(33,479	)		(25,057	)
Consolidated real estate fund		(86	)		(114	)		(152	)		(668	)		(242	)
Core FFO attributable to Paramount Group Operating Partnership		63,797			57,937			63,996			188,477			178,647
Less Core FFO attributable to noncontrolling interests in Operating Partnership		(6,049	)		(5,568	)		(6,097	)		(17,867	)		(20,208	)
Core FFO attributable to common stockholders (1)	$	57,748		$	52,369		$	57,899		$	170,610		$	158,439
Per diluted share	$	0.24		$	0.22		$	0.24		$	0.71		$	0.67
Reconciliation of weighted average shares outstanding:
Weighted average shares outstanding		240,447,921			239,445,810			240,336,485			240,365,882			235,151,398
Effect of dilutive securities		41,217			24,653			17,229			25,302			26,285
Denominator for FFO and Core FFO per diluted share		240,489,138			239,470,463			240,353,714			240,391,184			235,177,683

⁽¹⁾ See page 43 for our definition of this measure.

- 11 -

FAD

(unaudited and in thousands)

	Three Months Ended									Nine Months Ended
	September 30, 2018			September 30, 2017			June 30, 2018			September 30, 2018			September 30, 2017
Reconciliation of Core FFO to FAD:
Core FFO	$	76,315		$	67,707		$	74,988		$	222,624		$	203,946
Add (subtract) adjustments to arrive at FAD:
Amortization ofstock-based compensation expense		4,330			3,825			4,650			15,245			11,692
Amortization of deferred financing costs (including our share of unconsolidated joint ventures)		2,824			2,891			2,827			8,486			8,750
Amortization of above andbelow-market leases, net (including our share of unconsolidated joint ventures)		(3,724	)		(3,017	)		(4,141	)		(12,122	)		(13,716	)
Expenditures to maintain assets		(2,858	)		(2,861	)		(2,496	)		(9,056	)		(10,415	)
Second generation tenant improvements and leasing commissions		(27,993	)		(22,698	)		(20,392	)		(63,368	)		(39,973	)
Straight-line rent adjustments (including our share of unconsolidated joint ventures)		(15,752	)		(11,402	)		(16,853	)		(45,802	)		(44,121	)
					��
FAD (1)		33,142			34,445			38,583			116,007			116,163
Less FAD attributable to noncontrolling interests in:
Consolidated joint ventures		(5,503	)		(6,454	)		(6,277	)		(18,630	)		(11,437	)
Consolidated real estate fund		(86	)		(115	)		(152	)		(668	)		(243	)
FAD attributable to Paramount Group Operating Partnership		27,553			27,876			32,154			96,709			104,483
Less FAD attributable to noncontrolling interests in Operating Partnership		(2,612	)		(2,679	)		(3,063	)		(9,163	)		(11,835	)
FAD attributable to common stockholders (1)(2)	$	24,941		$	25,197		$	29,091		$	87,546		$	92,648
Dividends declared on common stock	$	24,046		$	22,807		$	24,053		$	72,150		$	67,425

⁽¹⁾  See page 43 for our definition of this measure.

⁽²⁾ FAD attributable to common stockholders is not necessarily indicative of future FAD amounts due to fluctuations in the timing of payments for tenant improvements and leasing commissions versus rents received from leases for which such costs are incurred.

- 12 -

EBITDAre

(unaudited and in thousands)

	Three Months Ended									Nine Months Ended
	September 30, 2018			September 30, 2017			June 30, 2018			September 30, 2018			September 30, 2017
Reconciliation of net income (loss) to EBITDAre and Adjusted EBITDAre:
Net income (loss)	$	44,261		$	(25,403)		$	(36,578)		$	10,398		$	114,408
Add (subtract) adjustments to arrive at EBITDAre and Adjusted EBITDAre:
Depreciation and amortization (including our share of unconsolidated joint ventures)		66,533			68,523			66,711			200,404			204,023
Interest and debt expense (including our share of unconsolidated joint ventures)		38,835			37,392			38,513			115,092			112,724
Income tax expense (benefit) (including our share of unconsolidated joint ventures)		1,814			(1,010	)		(120	)		2,172			4,242
Real estate impairment loss		—			—			46,000			46,000			—
Gain on sale of depreciable real estate		(36,845	)		—			—			(36,845	)		(110,583	)
EBITDAre(1)		114,598			79,502			114,526			337,221			324,814
Less EBITDAre attributable to noncontrolling interests in:
Consolidated joint ventures		(19,128	)		(1,294	)		(17,469	)		(53,383	)		(26,880	)
Consolidated real estate fund		(115	)		(111	)		(122	)		(669	)		(20,528	)
PGRE’s share of EBITDAre (1)	$	95,355		$	78,097		$	96,935		$	283,169		$	277,406
EBITDAre	$	114,598		$	79,502		$	114,526		$	337,221		$	324,814
Add (subtract) adjustments to arrive at Adjusted EBITDAre:
Transaction related costs		450			274			293			863			1,051
Our share of earnings from 712 Fifth Avenue in excess of distributions received and (distributions in excess of earnings)		398			691			(1,512	)		81			(14,381	)
EBITDAre from real estate funds		142			3,801			(122	)		(394	)		5,372
Pre-tax net gain on sale of residential condominium land parcel		—			—			—			—			(23,406	)
Valuation allowance on preferred equity investment		—			19,588			—			—			19,588
Loss on early extinguishment of debt		—			—			—			—			7,877
Unrealized gain on interest rate swaps (including our share of unconsolidated joint ventures)		—			—			—			—			(2,750	)
Adjusted EBITDAre (1)		115,588			103,856			113,185			337,771			318,165
Less Adjusted EBITDAre attributable to noncontrolling interests in:
Consolidated joint ventures		(19,128	)		(16,101	)		(17,469	)		(53,383	)		(42,153	)
Consolidated real estate fund		—			3			—			—			384
PGRE’s share of Adjusted EBITDAre (1)	$	96,460		$	87,758		$	95,716		$	284,388		$	276,396

⁽¹⁾ See page 43 for our definition of this measure.

- 13 -

NOI

(unaudited and in thousands)

	Three Months Ended									Nine Months Ended
	September 30, 2018			September 30, 2017			June 30, 2018			September 30, 2018			September 30, 2017
Reconciliation of net income (loss) to NOI and Cash NOI:
Net income (loss)	$	44,261		$	(25,403	)	$	(36,578	)	$	10,398		$	114,408
Add (subtract) adjustments to arrive at NOI and Cash NOI:
Depreciation and amortization		64,610			66,515			64,775			194,541			198,143
General and administrative		14,452			14,470			17,195			44,278			44,624
Interest and debt expense		37,105			35,733			36,809			109,996			107,568
Loss on early extinguishment of debt		—			—			—			—			7,877
Transaction related costs		450			274			293			863			1,051
Income tax expense (benefit)		1,814			(1,010	)		(120	)		2,171			4,242
NOI from unconsolidated joint ventures		4,448			4,993			4,569			13,757			14,774
Income from unconsolidated joint ventures		(472	)		(671	)		(2,521	)		(2,931	)		(19,143	)
Loss from unconsolidated real estate funds		188			3,930			14			268			6,053
Fee income		(4,079	)		(5,834	)		(5,409	)		(12,953	)		(19,838	)
Interest and other (income) loss, net		(2,778	)		17,668			(2,094	)		(6,888	)		11,982
Real estate impairment loss		—			—			46,000			46,000			—
Gain on sale of real estate		(36,845	)		—			—			(36,845	)		(133,989	)
Unrealized gain on interest rate swaps		—			—			—			—			(1,802	)
NOI (1)		123,154			110,665			122,933			362,655			335,950
Less NOI attributable to noncontrolling interests in:
Consolidated joint ventures		(18,303	)		(15,307	)		(16,674	)		(50,991	)		(39,536	)
Consolidated real estate fund		7			(21	)		(13	)		20			(507	)
PGRE’s share of NOI(1)	$	104,858		$	95,337		$	106,246		$	311,684		$	295,907
NOI (1)	$	123,154		$	110,665		$	122,933		$	362,655		$	335,950
Less:
Straight-line rent adjustments (including our share of unconsolidated joint ventures)		(15,752	)		(11,402	)		(16,853	)		(45,802	)		(44,121	)
Amortization of above andbelow-market leases, net (including our share of unconsolidated joint ventures)		(3,724	)		(3,017	)		(4,141	)		(12,122	)		(13,716	)
Cash NOI(1)		103,678			96,246			101,939			304,731			278,113
Less Cash NOI attributable to noncontrolling interests in:
Consolidated joint ventures		(14,968	)		(12,412	)		(13,438	)		(41,599	)		(29,240	)
Consolidated real estate fund		7			(21	)		(13	)		20			(507	)
PGRE’s share of Cash NOI (1)	$	88,717		$	83,813		$	88,488		$	263,152		$	248,366

⁽¹⁾ See page 43 for our definition of this measure.

- 14 -

NOI

(unaudited and in thousands)

	Three Months Ended September 30, 2018
	Total			New York			Washington, D.C.			San Francisco			Other
Reconciliation of net income (loss) to NOI and Cash NOI:
Net income (loss)	$	44,261		$	8,464		$	41,026		$	8,856		$	(14,085	)
Add (subtract) adjustments to arrive at NOI and Cash NOI:
Depreciation and amortization		64,610			38,687			3,903			21,324			696
General and administrative		14,452			—			—			—			14,452
Interest and debt expense		37,105			23,573			—			12,383			1,149
Transaction related costs		450			—			—			—			450
Income tax expense		1,814			—			—			2			1,812
NOI from unconsolidated joint ventures		4,448			4,356			—			—			92
Income from unconsolidated joint ventures		(472	)		(442	)		—			—			(30	)
Loss from unconsolidated real estate funds		188			—			—			—			188
Fee income		(4,079	)		—			—			—			(4,079	)
Interest and other income, net		(2,778	)		—			(181	)		(203	)		(2,394	)
Gain on sale of real estate		(36,845	)		—			(36,845	)		—			—
NOI (1)		123,154			74,638			7,903			42,362			(1,749	)
Less NOI attributable to noncontrolling interests in:
Consolidated joint ventures		(18,303	)		—			—			(18,303	)		—
Consolidated real estate fund		7			—			—			—			7
PGRE’s share of NOI for the three months ended September 30, 2018	$	104,858		$	74,638		$	7,903		$	24,059		$	(1,742	)
PGRE’s share of NOI for the three months ended September 30, 2017	$	95,337		$	67,699		$	9,099		$	20,287		$	(1,748	)
NOI (1)	$	123,154		$	74,638		$	7,903		$	42,362		$	(1,749	)
Add (subtract) adjustments to arrive at Cash NOI:
Straight-line rent adjustments (including our share of unconsolidated joint ventures)		(15,752	)		(9,254	)		(2,184	)		(4,292	)		(22	)
Amortization of above andbelow-market leases, net (including our share of unconsolidated joint ventures)		(3,724	)		534			(330	)		(3,928	)		—
Cash NOI(1)		103,678			65,918			5,389			34,142			(1,771	)
Less Cash NOI attributable to noncontrolling interests in:
Consolidated joint ventures		(14,968	)		—			—			(14,968	)		—
Consolidated real estate fund		7			—			—			—			7
PGRE’s share of Cash NOI for the three months ended September 30, 2018	$	88,717		$	65,918		$	5,389		$	19,174		$	(1,764	)
PGRE’s share of Cash NOI for the three months ended September 30, 2017	$	83,813		$	60,304		$	8,658		$	16,627		$	(1,776	)

⁽¹⁾ See page 43 for our definition of this measure.

- 15 -

NOI

(unaudited and in thousands)

	Nine Months Ended September 30, 2018
	Total			New York			Washington, D.C.			San Francisco			Other
Reconciliation of net income (loss) to NOI and Cash NOI:
Net income (loss)	$	10,398		$	25,058		$	3,277		$	21,763		$	(39,700)
Add (subtract) adjustments to arrive at NOI and Cash NOI:
Depreciation and amortization		194,541			115,242			14,955			62,393			1,951
General and administrative		44,278			—			—			—			44,278
Interest and debt expense		109,996			69,585			—			36,823			3,588
Transaction related costs		863			—			—			—			863
Income tax expense		2,171			—			—			10			2,161
NOI from unconsolidated joint ventures		13,757			13,514			—			—			243
Income from unconsolidated joint ventures		(2,931	)		(2,875	)		—			—			(56	)
Loss from unconsolidated real estate funds		268			—			—			—			268
Fee income		(12,953	)		—			—			—			(12,953	)
Interest and other income, net		(6,888	)		—			(181	)		(548	)		(6,159	)
Real estate impairment loss		46,000			—			46,000			—			—
Gain on sale of real estate		(36,845	)		—			(36,845	)		—			—
NOI (1)		362,655			220,524			27,206			120,441			(5,516	)
Less NOI attributable to noncontrolling interests in:
Consolidated joint ventures		(50,991	)		—			—			(50,991	)		—
Consolidated real estate funds		20			—			—			—			20
PGRE’s share of NOI for the nine months ended September 30, 2018	$	311,684		$	220,524		$	27,206		$	69,450		$	(5,496)
PGRE’s share of NOI for the nine months ended September 30, 2017	$	295,907		$	201,168		$	35,535		$	64,473		$	(5,269)
NOI (1)	$	362,655		$	220,524		$	27,206		$	120,441		$	(5,516)
Add (subtract) adjustments to arrive at Cash NOI:
Straight-line rent adjustments (including our share of unconsolidated joint ventures)		(45,802	)		(30,259	)		(1,822	)		(13,736	)		15
Amortization of above andbelow-market leases, net		(12,122	)		1,624			(1,427	)		(12,319	)		—
Cash NOI (1)		304,731			191,889			23,957			94,386			(5,501	)
Less Cash NOI attributable to noncontrolling interests in:
Consolidated joint ventures		(41,599	)		—			—			(41,599	)		—
Consolidated real estate funds		20			—			—			—			20
PGRE’s share of Cash NOI for the nine months ended September 30, 2018	$	263,152		$	191,889		$	23,957		$	52,787		$	(5,481)
PGRE’s share of Cash NOI for the nine months ended September 30, 2017	$	248,366		$	175,217		$	32,601		$	45,812		$	(5,264)

⁽¹⁾  See page 43 for our definition of this measure.

- 16 -

SAME STORE RESULTS

(unaudited and in thousands)

	Three Months Ended September 30, 2018
SAME STORE CASH NOI(1)	Total			New York			Washington, D.C.			San Francisco			Other
PGRE’s share of Cash NOI for the three months ended September 30, 2018	$	88,717		$	65,918		$	5,389		$	19,174		$	(1,764)
Acquisitions (2)		(458	)		—			—			(458	)		—
Dispositions		—			—			—			—			—
Lease termination income (including our share of unconsolidated joint ventures)		(506	)		(28	)		—			(478	)		—
Other, net		56			52			—			4			—
PGRE’s share of Same Store Cash NOI (1)for the three months ended September 30, 2018	$	87,809		$	65,942		$	5,389		$	18,242		$	(1,764)
	Three Months Ended September 30, 2017
	Total			New York			Washington, D.C.			San Francisco			Other
PGRE’s share of Cash NOI for the three months ended September 30, 2017	$	83,813		$	60,304		$	8,658		$	16,627		$	(1,776)
Acquisitions		—			—			—			—			—
Dispositions (3)		(1,059	)		—			(1,059	)		—			—
Lease termination income (including our share of unconsolidated joint ventures)		(886	)		(665	)		—			(221	)		—
Other, net		32			14			—			24			(6	)
PGRE’s share of Same Store Cash NOI (1)for the three months ended September 30, 2017	$	81,900		$	59,653		$	7,599		$	16,430		$	(1,782	)
Increase (decrease) in PGRE’s share of Same Store Cash NOI	$	5,909	(4)	$	6,289		$	(2,210	)(4)	$	1,812		$	18
% Increase (decrease)		7.2	%(4)		10.5	%		(29.1	%)(4)		11.0	%

⁽¹⁾ See page 43 for our definition of this measure.

⁽²⁾  Represents our share of Cash NOI attributable to acquired properties (50 Beale Street in San Francisco) for the months in which they were not owned by us in both reporting periods.

⁽³⁾ Represents our share of Cash NOI attributable to sold properties (2099 Pennsylvania Avenue in Washington, D.C.) for the months in which they were not owned by us in both reporting periods.

⁽⁴⁾ Results primarily from free rent at 425 Eye Street in the three months ended September 30, 2018. Excluding this free rent from the current year, Same Store Cash NOI would have increased by 10.6% for the total portfolio and 6.9% for our Washington, D.C. portfolio.

- 17 -

SAME STORE RESULTS

(unaudited and in thousands)

	Three Months Ended September 30, 2018
SAME STORE NOI (1)	Total			New York			Washington, D.C.			San Francisco			Other
PGRE’s share of NOI for the three months ended September 30, 2018	$	104,858		$	74,638		$	7,903		$	24,059		$	(1,742	)
Acquisitions (2)		(587	)		—			—			(587	)		—
Dispositions		—			—			—			—			—
Lease termination income (including our share of unconsolidated joint ventures)		(506	)		(28	)		—			(478	)		—
Other, net		56			52			—			4			—
PGRE’s share of Same Store NOI (1)for the three months ended September 30, 2018	$	103,821		$	74,662		$	7,903		$	22,998		$	(1,742	)
	Three Months Ended September 30, 2017
	Total			New York			Washington, D.C.			San Francisco			Other
PGRE’s share of NOI for the three months ended September 30, 2017	$	95,337		$	67,699		$	9,099		$	20,287		$	(1,748	)
Acquisitions		—			—			—			—			—
Dispositions (3)		(1,208	)		—		��	(1,208	)		—			—
Lease termination income (including our share of unconsolidated joint ventures)		(886	)		(665	)		—			(221	)		—
Other, net		241			208			—			39			(6	)
PGRE’s share of Same Store NOI (1)for the three months ended September 30, 2017	$	93,484		$	67,242		$	7,891		$	20,105		$	(1,754	)
Increase in PGRE’s share of Same Store NOI	$	10,337		$	7,420		$	12		$	2,893		$	12
% Increase		11.1	%		11.0	%		0.2	%		14.4	%

⁽¹⁾ See page 43 for our definition of this measure.

⁽²⁾ Represents our share of NOI attributable to acquired properties (50 Beale Street in San Francisco) for the months in which they were not owned by us in both reporting periods.

⁽³⁾ Represents our share of NOI attributable to sold properties (2099 Pennsylvania Avenue in Washington, D.C.) for the months in which they were not owned by us in both reporting periods.

- 18 -

SAME STORE RESULTS - BY SEGMENT

(unaudited and in thousands)

	Nine Months Ended September 30, 2018
SAME STORE CASH NOI (1)	Total			New York			Washington, D.C.			San Francisco			Other
PGRE’s share of Cash NOI for the nine months ended September 30, 2018	$	263,152		$	191,889		$	23,957		$	52,787		$	(5,481	)
Acquisitions (2)		(4,188	)		(215	)		—			(3,973	)		—
Dispositions		—			—			—			—			—
Lease termination income (including our share of unconsolidated joint ventures)		(750	)		(272	)		—			(478	)		—
Other, net		230			226			—			4			—
PGRE’s share of Same Store Cash NOI (1)for the nine months ended September 30, 2018	$	258,444		$	191,628		$	23,957		$	48,340		$	(5,481	)
	Nine Months Ended September 30, 2017
	Total			New York			Washington, D.C.			San Francisco			Other
PGRE’s share of Cash NOI for the nine months ended September 30, 2017	$	248,366		$	175,217		$	32,601		$	45,812		$	(5,264	)
Acquisitions		—			—			—			—			—
Dispositions (3)		(9,691	)		—			(9,691	)		—			—
Lease termination income (including our share of unconsolidated joint ventures)		(1,993	)		(906	)		—			(1,087	)		—
Other, net		(55	)		44			—			24			(123	)
PGRE’s share of Same Store Cash NOI (1)for the nine months ended September 30, 2017	$	236,627		$	174,355		$	22,910		$	44,749		$	(5,387	)
Increase (decrease) in PGRE’s share of Same Store Cash NOI	$	21,817	(4)	$	17,273		$	1,047	(4)	$	3,591		$	(94	)
% Increase		9.2	%(4)		9.9	%		4.6	%(4)		8.0	%

⁽¹⁾ See page 43 for our definition of this measure.

⁽²⁾ Represents our share of Cash NOI attributable to acquired properties (60 Wall Street in New York and 50 Beale Street in San Francisco) for the months in which they were not owned by us in both reporting periods.

⁽³⁾  Represents our share of Cash NOI attributable to sold properties (Waterview and 2099 Pennsylvania Avenue in Washington, D.C.) for the months in which they were not owned by us in both reporting periods.

⁽⁴⁾ Same Store Cash NOI in the nine months ended September 30, 2018 includes free rent at 425 Eye Street. Excluding this free rent from the current year, Same Store Cash NOI would have increased by 10.4% for the total portfolio and 16.5% for our Washington, D.C. portfolio.

- 19 -

SAME STORE RESULTS - BY SEGMENT

(unaudited and in thousands)

	Nine Months Ended September 30, 2018
SAME STORE NOI (1)	Total			New York			Washington, D.C.			San Francisco			Other
PGRE’s share of NOI for the nine months ended September 30, 2018	$	311,684		$	220,524		$	27,206		$	69,450		$	(5,496	)
Acquisitions (2)		(5,254	)		(173	)		—			(5,081	)		—
Dispositions		—			—			—			—			—
Lease termination income (including our share of unconsolidated joint ventures)		(750	)		(272	)		—			(478	)		—
Other, net		230			226			—			4			—
PGRE’s share of Same Store NOI (1)for the nine months ended September 30, 2018	$	305,910		$	220,305		$	27,206		$	63,895		$	(5,496	)
	Nine Months Ended September 30, 2017
	Total			New York			Washington, D.C.			San Francisco			Other
PGRE’s share of NOI for the nine months ended September 30, 2017	$	295,907		$	201,168		$	35,535		$	64,473		$	(5,269	)
Acquisitions		—			—			—			—			—
Dispositions (3)		(9,840	)		—			(9,840	)		—			—
Lease termination income (including our share of unconsolidated joint ventures)		(1,993	)		(906	)		—			(1,087	)		—
Other, net		(544	)		238			—			(659	)		(123	)
PGRE’s share of Same Store NOI (1)for the nine months ended September 30, 2017	$	283,530		$	200,500		$	25,695		$	62,727		$	(5,392	)
Increase (decrease) in PGRE’s share of Same Store NOI	$	22,380	(4)	$	19,805		$	1,511		$	1,168	(4)	$	(104	)
% Increase		7.9	%(4)		9.9	%		5.9	%		1.9	%(4)

⁽¹⁾  See page 43 for our definition of this measure.

⁽²⁾  Represents our share of NOI attributable to acquired properties (60 Wall Street in New York and 50 Beale Street in San Francisco) for the months in which they were not owned by us in both reporting periods.

⁽³⁾  Represents our share of NOI attributable to sold properties (Waterview and 2099 Pennsylvania Avenue in Washington, D.C.) for the months in which they were not owned by us in both reporting periods.

⁽⁴⁾  Same Store NOI in the nine months ended September 30, 2017 included income from the accelerated amortization of abelow-market lease liability in connection with a tenant’s lease modification. Excluding this income from the prior year, Same Store NOI would have increased by 8.8% for the total portfolio and 6.0% for our San Francisco portfolio.

- 20 -

CONSOLIDATED JOINT VENTURES AND FUND - BALANCE SHEETS

(unaudited and in thousands)

	As of September 30, 2018										As of December 31, 2017
									Consolidated										Consolidated
	Consolidated Joint Ventures								Fund		Consolidated Joint Ventures								Fund
		Total		One		50		PGRESS		Residential		Total		One		50		PGRESS		Residential
	Consolidated		Market		Beale		Equity		Development		Consolidated		Market		Beale		Equity		Development
	Joint Ventures		Plaza		Street		Holdings L.P.		Fund		Joint Ventures		Plaza		Street		Holdings L.P.		Fund
PGRE Ownership			49.0%		31.1%		24.4%		7.4%				49.0%		31.1%		24.4%		7.4%
ASSETS:
Real estate, net	$	1,704,019	$	1,226,921	$	477,098	$	—	$	—	$	1,726,800	$	1,246,427	$	480,373	$	—	$	—
Cash and cash equivalents		65,671		41,846		23,477		348		7,356		46,839		24,658		21,792		389		656
Restricted cash		5,536		5,536		—		—		—		8,163		8,163		—		—		—
Preferred equity investments, net		35,983		—		—		35,983		—		35,817		—		—		35,817		—
Investments in unconsolidated joint ventures		—		—		—		—		48,530		—		—		—		—		16,031
Accounts and other receivables, net		1,482		448		1,034		—		89		2,548		1,423		1,125		—		2
Deferred rent receivable		50,053		46,479		3,574		—		—		44,000		43,332		668		—		—
Deferred charges, net		12,945		9,313		3,632		—		—		8,123		7,508		615		—		—
Intangible assets, net		50,822		31,716		19,106		—		—		66,112		39,421		26,691		—		—
Other assets		1,565		1,214		351		—		15,690		908		747		161		—		10
Total Assets	$	1,928,076	$	1,363,473	$	528,272	$	36,331	$	71,665	$	1,939,310	$	1,371,679	$	531,425	$	36,206	$	16,699
LIABILITIES:
Notes and mortgages payable, net	$	1,197,385	$	969,385	$	228,000	$	—	$	—	$	1,196,607	$	968,607	$	228,000	$	—	$	—
Accounts payable and accrued expenses		29,187		19,763		9,382		42		50		21,134		14,876		6,205		53		62
Intangible liabilities, net		35,124		28,662		6,462		—		—		46,365		36,793		9,572		—		—
Other liabilities		5		2		3		—		—		156		149		7		—		—
Total Liabilities		1,261,701		1,017,812		243,847		42		50		1,264,262		1,020,425		243,784		53		62
EQUITY:
Paramount Group, Inc. equity		266,441		169,441		87,679		9,321		5,516		270,051		172,182		88,695		9,174		2,088
Noncontrolling interests		399,934		176,220		196,746		26,968		66,099		404,997		179,072		198,946		26,979		14,549
Total Equity		666,375		345,661		284,425		36,289		71,615		675,048		351,254		287,641		36,153		16,637
Total Liabilities and Equity	$	1,928,076	$	1,363,473	$	528,272	$	36,331	$	71,665	$	1,939,310	$	1,371,679	$	531,425	$	36,206	$	16,699

- 21 -

CONSOLIDATED JOINT VENTURES AND FUND - OPERATING RESULTS

(unaudited and in thousands)

	Three Months Ended September 30, 2018														Three Months Ended September 30, 2017
												Consolidated															Consolidated
	Consolidated Joint Ventures											Fund			Consolidated Joint Ventures												Fund
	Total			One								Residential			Total			One									Residential
	Consolidated			Market			50 Beale			PGRESS Equity		Development			Consolidated			Market			50 Beale			PGRESS Equity			Development
	Joint Ventures			Plaza			Street (1)			Holdings L.P.		Fund			Joint Ventures			Plaza			Street (1)			Holdings L.P.			Fund
Total revenues	$	45,302		$	33,401		$	11,901		$	—	$	—		$	39,506		$	32,174		$	7,332		$	—		$	(82	)
Total operating expenses		11,504			8,285			3,219			—		9			10,397			7,812			2,585			—			(14	)
Net operating income (loss)		33,798			25,116			8,682			—		(9	)		29,109			24,362			4,747			—			(68	)
Depreciation and amortization		(16,951	)		(10,921	)		(6,030	)		—		—			(16,324	)		(12,195	)		(4,129	)		—			—
Interest and other income (loss), net		1,133			134			69			930		55			(18,501	)		74			52			(18,627	)		104
Interest and debt expense		(12,383	)		(10,302	)		(2,081	)		—		—			(12,026	)		(10,303	)		(1,723	)		—			—
Income from unconsolidated joint ventures		—			—			—			—		—			—			—			—			—			100
Net income (loss) before income taxes		5,597			4,027			640			930		46			(17,742	)		1,938			(1,053	)		(18,627	)		136
Income tax expense		(2	)		—			(2	)		—		(2	)		(1	)		—			(1	)		—			—
Net income (loss)	$	5,595		$	4,027		$	638		$	930	$	44		$	(17,743)		$	1,938		$	(1,054	)	$	(18,627	)	$	136
PGRE’s share Ownership		Total			49.0%			31.1%			24.4%		7.4%			Total			49.0%			31.1%			24.4%			7.4%
Net income (loss)	$	2,378		$	1,976		$	175		$	227	$	(42	)	$	(3,930	)	$	948		$	(341	)	$	(4,537	)	$	16
Add: Management fee income		504			167			337			—		—			404			137			267			—			7
PGRE’s share of net income (loss)		2,882			2,143			512			227		(42	)		(3,526	)		1,085			(74	)		(4,537	)		23
Add: Real estate depreciation and amortization		7,232			5,351			1,881			—		—			7,259			5,976			1,283			—			—
FFO (2)		10,114			7,494			2,393			227		(42	)		3,733			7,061			1,209			(4,537	)		23
Add: Valuation allowance on preferred equity investment		—			—			—			—		—			4,780			—			—			4,780			—
Core FFO (2)	$	10,114		$	7,494		$	2,393		$	227	$	(42	)	$	8,513		$	7,061		$	1,209		$	243		$	23
Noncontrolling interests’ share Ownership		Total			51.0%			68.9%			75.6%		92.6%			Total			51.0%			68.9%			75.6%			92.6%
Net income (loss)	$	3,217		$	2,051		$	463		$	703	$	86		$	(13,813	)	$	990		$	(713	)	$	(14,090	)	$	120
Less: Management fee expense		(504	)		(167	)		(337	)		—		—			(404	)		(137	)		(267	)		—			(7	)
Net income (loss) attributable to noncontrolling interests		2,713			1,884			126			703		86			(14,217	)		853			(980	)		(14,090	)		113
Add: Real estate depreciation and amortization		9,719			5,570			4,149			—		—			9,065			6,219			2,846			—			—
FFO (2)		12,432			7,454			4,275			703		86			(5,152	)		7,072			1,866			(14,090	)		113
Add: Valuation allowance on preferred equity investment		—			—			—			—		—			14,808			—			—			14,808			—
Core FFO (2)	$	12,432		$	7,454		$	4,275		$	703	$	86		$	9,656		$	7,072		$	1,866		$	718		$	113

⁽¹⁾ Acquired on July 17, 2017.

⁽²⁾ See page 43 for our definition of this measure.

- 22 -

CONSOLIDATED JOINT VENTURES AND FUND - OPERATING RESULTS

(unaudited and in thousands)

	Nine Months Ended September 30, 2018														Nine Months Ended September 30, 2017
												Consolidated															Consolidated
	Consolidated Joint Ventures											Fund			Consolidated Joint Ventures												Fund
	Total			One								Residential			Total			One									Residential
	Consolidated			Market			50 Beale			PGRESS Equity		Development			Consolidated			Market			50 Beale			PGRESS Equity			Development
	Joint Ventures			Plaza			Street (1)			Holdings L.P.		Fund			Joint Ventures			Plaza			Street (1)			Holdings L.P.			Fund
Total revenues	$	128,758		$	98,121		$	30,637		$	—	$	9		$	102,518		$	95,186		$	7,332		$	—		$	1,338
Total operating expenses		33,401			23,904			9,497			—		10			25,383			22,798			2,585			—			501
Net operating income (loss)		95,357			74,217			21,140			—		(1	)		77,135			72,388			4,747			—			837
Depreciation and amortization		(49,215	)		(33,207	)		(16,008	)		—		—			(39,364	)		(35,235	)		(4,129	)		—			(359	)
Interest and other income (loss), net		3,294			350			198			2,746		685			(16,073	)		136			52			(16,261	)		129
Interest and debt expense		(36,823	)		(30,581	)		(6,242	)		—		—			(32,983	)		(31,260	)		(1,723	)		—			—
Loss on early extinguishment of debt		—			—			—			—		—			(2,715	)		(2,715	)		—			—			—
Gain on sale of land parcel		—			—			—			—		—			—			—			—			—			23,406	(2)
Income from unconsolidated joint ventures		—			—			—			—		(18	)		—			—			—			—			133
Unrealized gain on interest rate swaps		—			—			—			—		—			1,802			1,802			—			—			—
Net income (loss) before income taxes		12,613			10,779			(912	)		2,746		666			(12,198	)		5,116			(1,053	)		(16,261	)		24,146
Income tax expense		(10	)		(2	)		(8	)		—		(1	)		(6	)		(5	)		(1	)		—			(2	)
Net income (loss)	$	12,603		$	10,777		$	(920	)	$	2,746	$	665		$	(12,204	)	$	5,111		$	(1,054	)	$	(16,261	)	$	24,144
PGRE’s share Ownership	Total			49.0%			31.1%			24.4%		7.4%			Total			49.0%			31.1%			24.4%			7.4%
Net income (loss)	$	5,602		$	5,277		$	(344	)	$	669	$	(7	)	$	(1,846	)	$	2,456		$	(341	)	$	(3,961	)	$	3,584
Add: Management fee income		1,481			491			990			—		4			671			404			267			—			350
PGRE’s share of net income (loss)		7,083			5,768			646			669		(3	)		(1,175	)		2,860			(74	)		(3,961	)		3,934
Add: Real estate depreciation and amortization		21,256			16,271			4,985			—		—			18,552			17,269			1,283			—			40
FFO (3)		28,339			22,039			5,631			669		(3	)		17,377			20,129			1,209			(3,961	)		3,974
Add: Valuation allowance on preferred equity investment		—			—			—			—		—			4,780			—			—			4,780			—
Add: Loss on early extinguishment of debt		—			—			—			—		—			1,330			1,330			—			—			—
Less: Gain on sale of land parcel		—			—			—			—		—			—			—			—			—			(3,118	)
Less: Unrealized gain on interest rate swaps		—			—			—			—		—			(883	)		(883	)		—			—			—
Core FFO (3)	$	28,339		$	22,039		$	5,631		$	669	$	(3	)	$	22,604		$	20,576		$	1,209		$	819		$	856
Noncontrolling Interests’ share Ownership	Total			51.0%			68.9%			75.6%		92.6%			Total			51.0%			68.9%			75.6%			92.6%
Net income(loss)	$	7,001		$	5,500		$	(576	)	$	2,077	$	672		$	(10,358	)	$	2,655		$	(713	)	$	(12,300	)	$	20,560
Less: Management fee expense		(1,481	)		(491	)		(990	)		—		(4	)		(671	)		(404	)		(267	)		—			(350	)
Net income (loss) attributable to noncontrolling		5,520			5,009			(1,566	)		2,077		668			(11,029	)		2,251			(980	)		(12,300	)		20,210
Add: Real estate depreciation and amortization		27,959			16,936			11,023			—		—			20,812			17,966			2,846			—			319
FFO (3)		33,479			21,945			9,457			2,077		668			9,783			20,217			1,866			(12,300	)		20,529
Add: Valuation allowance on preferred equity investment		—			—			—			—		—			14,808			—			—			14,808			—
Add: Loss on early extinguishment of debt		—			—			—			—		—			1,385			1,385			—			—			—
Less: Gain on sale of land parcel		—			—			—			—		—			—			—			—			—			(20,288	)
Less: Unrealized gain on interest rate swaps		—			—			—			—		—			(919	)		(919	)		—			—			—
Core FFO (3)	$	33,479		$	21,945		$	9,457		$	2,077	$	668		$	25,057		$	20,683		$	1,866		$	2,508		$	241

⁽¹⁾ Acquired on July 17, 2017.

⁽²⁾ Represents the gain on sale of an 80.0% equity interest in One Steuart Lane (formerly 75 Howard Street), of which our share, net of income taxes, was $1,661.

⁽³⁾  See page 43 for our definition of this measure.

- 23 -

UNCONSOLIDATED JOINT VENTURES - BALANCE SHEETS

(unaudited and in thousands)

	As of September 30, 2018									As of December 31, 2017
			712			60 Wall						712			60 Wall
	Total		Fifth Avenue			Street		Other (1)		Total		Fifth Avenue			Street		Other (1)
PGRE Ownership			50.0%			5.0%		Various				50.0%			5.0%		Various
ASSETS:
Real estate, net	$	1,226,447	$	199,862		$	858,057	$	168,528	$	1,196,116	$	202,040		$	873,142	$	120,934
Cash and cash equivalents		52,130		33,539			17,922		669		52,132		31,511			18,642		1,979
Restricted cash		2,901		2,669			—		232		4,726		4,726			—		—
Accounts and other receivables, net		150		150			—		—		296		296			—		—
Deferred rent receivable		15,449		13,745			1,704		—		15,446		13,456			1,990		—
Deferred charges, net		7,148		7,148			—		—		7,848		7,848			—		—
Intangible assets, net		104,849		—			104,849		—		126,422		—			126,422		—
Other assets		14,875		4,032			5,513		5,330		1,148		197			105		846
Total Assets	$	1,423,949	$	261,145		$	988,045	$	174,759	$	1,404,134	$	260,074		$	1,020,301	$	123,759
LIABILITIES:
Notes and mortgages payable, net	$	887,242	$	296,440		$	569,102	$	21,700	$	886,902	$	296,132		$	567,799	$	22,971
Accounts payable and accrued expenses		25,261		5,046			12,980		7,235		12,560		4,435			7,382		743
Other liabilities		2,460		171			852		1,437		1,636		180			850		606
Total Liabilities		914,963		301,657			582,934		30,372		901,098		300,747			576,031		24,320
EQUITY:
Total Equity		508,986		(40,512	)		405,111		144,387		503,036		(40,673	)		444,270		99,439
Total Liabilities and Equity	$	1,423,949	$	261,145		$	988,045	$	174,759	$	1,404,134	$	260,074		$	1,020,301	$	123,759

⁽¹⁾ RepresentsOder-Center, Germany and One Steuart Lane.

- 24 -

UNCONSOLIDATED JOINT VENTURES - OPERATING RESULTS

(unaudited and in thousands)

	Three Months Ended September 30, 2018												Three Months Ended September 30, 2017
				712			60 Wall									712			60 Wall
	Total			Fifth Avenue			Street			Other (1)			Total			Fifth Avenue			Street			Other (1)
Total revenues	$	35,376		$	13,581		$	20,632		$	1,163		$	36,844		$	14,471		$	20,517		$	1,856
Total operating expenses		13,274			6,250			6,840			184			13,352			6,197			6,632			523
Net operating income		22,102			7,331			13,792			979			23,492			8,274			13,885			1,333
Depreciation and amortization		(12,001	)		(2,864	)		(9,034	)		(103	)		(12,196	)		(3,067	)		(9,034	)		(95	)
Interest and other income, net		192			146			46			—			137			68			63			6
Interest and debt expense		(10,080	)		(2,701	)		(7,119	)		(260	)		(8,795	)		(2,700	)		(5,841	)		(254	)
Net income (loss) before income taxes		213			1,912			(2,315	)		616			2,638			2,575			(927	)		990
Income tax expense		—			—			—			—			—			—			—			—
Net income (loss)	$	213		$	1,912		$	(2,315	)	$	616		$	2,638		$	2,575		$	(927	)	$	990
PGRE’s share Ownership		Total			50.0%			5.0%			Various			Total			50.0%			5.0%			Various
Net income (loss)	$	898		$	956		$	(116	)	$	58		$	1,388		$	1,287		$	(45	)	$	146
Less:Step-up basis adjustment		(28	)		—			—			(28	)		(26	)		—			—			(26	)
Less: Earnings in excess of distributions		(398	)		(398	)		—			—			(691	)		(691	)		—			—
PGRE’s share of net income (loss)		472			558			(116	)		30			671			596			(45	)		120
Less: Noncontrolling interests		—			—			—			—			(88	)		—			—			(88	)
Add: Real estate depreciation and amortization		1,923			1,432			453			38			2,008			1,533			440			35
FFO (2)		2,395			1,990			337			68			2,591			2,129			395			67
Add: Earnings in excess of distributions		398			398			—			—			691			691			—			—
Less: Unrealized gain on interest rate swaps		—			—			—			—			—			—			—			—
Core FFO(2)	$	2,793		$	2,388		$	337		$	68		$	3,282		$	2,820		$	395		$	67
Joint Venture Partners’ share Ownership		Total			50.0%			95.0%			Various			Total			50.0%			95.0%			Various
Net (loss) income	$	(685	)	$	956		$	(2,199	)	$	558		$	1,250		$	1,288		$	(882	)	$	844
Add: Real estate depreciation and amortization		10,106			1,432			8,581			93			10,214			1,534			8,594			86
FFO (2)		9,421			2,388			6,382			651			11,464			2,822			7,712			930
Less: Unrealized gain on interest rate swaps		—			—			—			—			—			—			—			—
Core FFO(2)	$	9,421		$	2,388		$	6,382		$	651		$	11,464		$	2,822		$	7,712		$	930

⁽¹⁾ RepresentsOder-Center, Germany and One Steuart Lane.

⁽²⁾ See page 43 for our definition of this measure.

- 25 -

UNCONSOLIDATED JOINT VENTURES - OPERATING RESULTS

(unaudited and in thousands)

	Nine Months Ended September 30, 2018												Nine Months Ended September 30, 2017
				712			60 Wall									712			60 Wall
	Total			Fifth Avenue			Street (1)			Other (2)			Total			Fifth Avenue			Street (1)			Other (2)
Total revenues	$	106,720		$	41,446		$	61,591		$	3,683		$	103,773		$	43,240		$	55,976		$	4,557
Total operating expenses		39,879			18,560			20,313			1,006			37,407			18,265			17,733			1,409
Net operating income		66,841			22,886			41,278			2,677			66,366			24,975			38,243			3,148
Depreciation and amortization		(36,194	)		(8,788	)		(27,100	)		(306	)		(34,208	)		(9,062	)		(24,866	)		(280	)
Interest and other income, net		560			416			143			1			242			140			95			7
Interest and debt expense		(28,992	)		(8,020	)		(20,189	)		(783	)		(24,548	)		(8,651	)		(15,137	)		(760	)
Unrealized gain on interest rate swaps		—			—			—			—			1,896			1,896			—			—
Net income (loss) before income taxes		2,215			6,494			(5,868	)		1,589			9,748			9,298			(1,665	)		2,115
Income tax expense		(10	)		—			—			(10	)		(2	)		—			—			(2	)
Net income (loss)	$	2,205		$	6,494		$	(5,868	)	$	1,579		$	9,746		$	9,298		$	(1,665	)	$	2,113
PGRE’s share Ownership	Total			50.0%			5.0%			Various			Total			50.0%			5.0%			Various
Net income (loss)	$	3,095		$	3,247		$	(291	)	$	139		$	4,838		$	4,649		$	(81	)	$	270
Less:Step-up basis adjustment		(83	)		—			—			(83	)		(76	)		—			—			(76	)
Less: (Earnings in excess of distributions) and distributions in excess of earnings		(81	)		(81	)		—			—			14,381			14,381			—			—
PGRE’s share of net income (loss)		2,931			3,166			(291	)		56			19,143			19,030			(81	)		194
Less: Noncontrolling interests		—			—			—			—			(119	)		—			—			(119	)
Add: Real estate depreciation and amortization		5,863			4,394			1,358			111			5,880			4,531			1,246			103
FFO (3)		8,794			7,560			1,067			167			24,904			23,561			1,165			178
Add: Earnings in excess of distributions and
(distributions in excess of earnings)		81			81			—			—			(14,381	)		(14,381	)		—			—
Less: Unrealized gain on interest rate swaps		—			—			—			—			(948	)		(948	)		—			—
Core FFO(3)	$	8,875		$	7,641		$	1,067		$	167		$	9,575		$	8,232		$	1,165		$	178
Joint Venture Partners’ share Ownership	Total			50.0%			95.0%			Various			Total			50.0%			95.0%			Various
Net (loss) income	$	(890	)	$	3,247		$	(5,577	)	$	1,440		$	4,908		$	4,649		$	(1,584	)	$	1,843
Add: Real estate depreciation and amortization		30,414			4,394			25,742			278			28,404			4,531			23,620			253
FFO (3)		29,524			7,641			20,165			1,718			33,312			9,180			22,036			2,096
Less: Unrealized gain on interest rate swaps		—			—			—			—			(948	)		(948	)		—			—
Core FFO(3)	$	29,524		$	7,641		$	20,165		$	1,718		$	32,364		$	8,232		$	22,036		$	2,096

⁽¹⁾ Acquired on January 24, 2017.

⁽²⁾ RepresentsOder-Center, Germany and One Steuart Lane.

⁽³⁾  See page 43 for our definition of this measure.

- 26 -

UNCONSOLIDATED FUNDS SUMMARY

(unaudited and in thousands)

Debt Fund:

The following is a summary of our Debt Fund and our ownership interests in the underlying investments, as of September 30, 2018.

		PGRE Ownership			Fixed / Variable rate		Interest Rate		Maturity		Face Amount				Fair Value
Investments	Investment Type										Total		Our Share		Total		Our Share
26 Broadway	Mezzanine Loan		1.3	%		Fixed		8.25%		Jan-2022	$	50,000	$	645	$	50,264	$	648
700 Eighth Avenue	Mortgage and Mezzanine Loans		1.3	%		Variable (LIBOR plus 600 bps)		8.12%		Jul-2020		70,000		903		70,002		903
1285 Avenue of the Americas	Mezzanine Loan		1.3	%		Fixed		6.75%		Jun-2023		55,000		710		55,394		715
Other	Mortgage and Mezzanine Loans/ Preferred Equity		1.3	%		Various		5.50% - 9.61%		Oct-2019 to Dec-2027		354,790		4,579		355,305		4,583
											$	529,790	$	6,837	$	530,965	$	6,849

	Total			Our Share
Committed capital	$	775,200		$	10,000
Called and/or invested		(532,450	)		(6,869	)
Available to be invested	$	242,750		$	3,131

- 27 -

CAPITAL STRUCTURE

(unaudited and in thousands, except share, unit and per share amounts)

					As of September 30, 2018
Debt:
Consolidated debt:
Notes and mortgages payable (1)					$	3,599,800
$1.0 billion Revolving Credit Facility (2)						—
						3,599,800
Less:
Noncontrolling interests’ share of consolidated debt (One Market Plaza and 50 Beale Street)						(654,342	)
Add:
PGRE’s share of unconsolidated joint venture debt (712 Fifth Avenue, 60 Wall Street andOder-Center, Germany)						180,869
PGRE’s share of total debt (3)						3,126,327
	Shares / Units Outstanding		Share Price as of September 30, 2018
Equity:
Common stock		240,461,106	$	15.09		3,628,558
Operating Partnership units		25,127,003		15.09		379,166
Total equity		265,588,109		15.09		4,007,724
Total Market Capitalization					$	7,134,051

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

⁽²⁾  On January 10, 2018, we amended and extended our revolving credit facility. The maturity date of our revolving credit facility was extended from November 2018 to January 2022, with twosix-month extension options, and the capacity was increased to $1.0 billion from $800 million.

⁽³⁾  See page 43 for our definition of this measure.

- 28 -

DEBT ANALYSIS

(unaudited and in thousands)

	Total Debt						Fixed Rate Debt						Variable Rate Debt
	Amount			Rate			Amount			Rate			Amount			Rate
Consolidated Debt:
1633 Broadway	$	1,046,800			3.55	%	$	1,000,000			3.54	%	$	46,800			3.85	%
1301 Avenue of the Americas		850,000			3.41	%		500,000			3.05	%		350,000			3.93	%
31 West 52nd Street		500,000			3.80	%		500,000			3.80	%		—			—
One Market Plaza		975,000			4.03	%		975,000			4.03	%		—			—
50 Beale Street		228,000			3.65	%		228,000			3.65	%		—			—
Revolving Credit Facility (1)		—			—			—			—			—			—
Total consolidated debt		3,599,800			3.69	%		3,203,000			3.66	%		396,800			3.92	%
Noncontrolling interests’ share		(654,342	)		3.94	%		(654,342	)		3.94	%		—			—
PGRE’s share of consolidated debt (2)	$	2,945,458			3.63	%	$	2,548,658			3.59	%	$	396,800			3.92	%
Unconsolidated Joint Venture Debt:
712 Fifth Avenue	$	300,000			3.39	%	$	300,000			3.39	%	$	—			—
60 Wall Street		575,000			4.61	%		—			—			575,000			4.61	%
Oder - Center, Germany		21,700			4.62	%		21,700			4.62	%		—			—
Total unconsolidated debt		896,700			4.20	%		321,700			3.47	%		575,000			4.61	%
Joint venture partners’ share		(715,831	)		4.35	%		(169,639	)		3.53	%		(546,192	)		4.61	%
PGRE’s share of unconsolidated debt (2)	$	180,869			3.60	%	$	152,061			3.41	%	$	28,808			4.61	%
PGRE’s share of Total Debt (2)	$	3,126,327			3.63	%	$	2,700,719			3.58	%	$	425,608			3.96	%

	Required		Actual
Revolving Credit Facility Covenants: (3)
Total Debt / Total Assets		Less than 60%		39.0	%
Secured Debt / Total Assets		Less than 50%		38.9	%
Fixed Charge Coverage		Greater than 1.5x		3.7	x
Unsecured Debt / Unencumbered Assets		Less than 60%		0.0	%
Unencumbered Interest Coverage		Greater than 1.75x		38.0	x

	Amount		%
Debt Composition:
Fixed rate debt:
PGRE’s consolidated fixed rate debt	$	2,548,658
PGRE’s unconsolidated fixed rate debt		152,061
Total fixed rate debt		2,700,719		86.4	%
Variable rate debt:
PGRE’s consolidated variable rate debt		396,800
PGRE’s unconsolidated variable rate debt		28,808
Total variable rate debt		425,608		13.6	%
PGRE’s share of Total Debt (2)	$	3,126,327		100.0	%

⁽¹⁾  On January 10, 2018, we amended and extended our revolving credit facility.

⁽²⁾  See page 43 for our definition of this measure.

⁽³⁾  This section presents ratios as of September 30, 2018 in accordance with the terms of our revolving credit facility, which has been filed with the SEC. We are not presenting these ratios and the related calculations for any other purpose or for any other period, and are not intending for these measures to otherwise provide information to investors about our 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.

- 29 -

DEBT MATURITIES

(unaudited and in thousands)

	2018		2019		2020		2021			2022			Thereafter			Total
Consolidated Debt:
1301 Avenue of the Americas	$	—	$	—	$	—	$	850,000		$	—		$	—		$	850,000
50 Beale Street		—		—		—		228,000			—			—			228,000
1633 Broadway		—		—		—		—			1,046,800			—			1,046,800
One Market Plaza		—		—		—		—			—			975,000			975,000
31 West 52nd Street		—		—		—		—			—			500,000			500,000
Revolving Credit Facility		—		—		—		—			—			—			—
Total consolidated debt		—		—		—		1,078,000			1,046,800			1,475,000			3,599,800
Noncontrolling interests’ share		—		—		—		(157,092	)		—			(497,250	)		(654,342	)
PGRE’s share of consolidated debt (1)	$	—	$	—	$	—	$	920,908		$	1,046,800		$	977,750		$	2,945,458
Unconsolidated Joint Venture Debt:
712 Fifth Avenue	$	—	$	—	$	—	$	—		$	—		$	300,000		$	300,000
60 Wall Street		—		—		—		—			575,000			—			575,000
Oder - Center, Germany		—		—		—		—			21,700			—			21,700
Total unconsolidated debt		—		—		—		—			596,700			300,000			896,700
Joint venture partners’ share		—		—		—		—			(565,831	)		(150,000	)		(715,831	)
PGRE’s share of unconsolidated debt (1)	$	—	$	—	$	—	$	—		$	30,869		$	150,000		$	180,869
PGRE’s share of total debt (1)	$	—	$	—	$	—	$	920,908		$	1,077,669		$	1,127,750		$	3,126,327
Weighted average rate		—		—		—		3.43	%		3.58	%		3.84	%		3.63	%
% of debt maturing		—		—		—		29.5	%		34.4	%		36.1	%		100.0	%

⁽¹⁾  See page 43 for our definition of this measure.

- 30 -

PORTFOLIO SUMMARY

(unaudited and in thousands, except square feet and per square foot amounts)

													Annualized Rent(1)
Property	Submarket	Paramount Ownership			Square Feet		% Leased (1)			% Occupied (1)			Amount		Per Square Foot (2)
As of September 30, 2018
New York:
1633 Broadway	West Side		100.0	%		2,518,597		95.4	%		95.4	%	$	175,316	$	74.83
1301 Avenue of the Americas	Sixth Avenue / Rock Center		100.0	%		1,781,571		97.9	%		97.9	%		134,543		78.54
1325 Avenue of the Americas	Sixth Avenue / Rock Center		100.0	%		811,440		96.7	%		81.2	%		43,367		66.94
31 West 52nd Street	Sixth Avenue / Rock Center		100.0	%		763,140		95.8	%		81.5	%		55,356		86.36
900 Third Avenue	East Side		100.0	%		599,317		95.5	%		94.4	%		38,934		69.20
712 Fifth Avenue	Madison / Fifth Avenue		50.0	%		543,411		91.0	%		89.2	%		55,427		114.96
60 Wall Street	Downtown		5.0	%		1,625,483		100.0	%		100.0	%		73,600		45.28
Subtotal /Weighted average						8,642,959		96.7	%		93.8	%		576,543		71.81
PGRE’s share						6,827,208		96.1	%		92.5	%		478,917		76.89
Washington, D.C.:
1899 Pennsylvania Avenue	CBD		100.0	%		190,955		100.0	%		100.0	%		15,906		83.03
Liberty Place	East End		100.0	%		174,090		95.8	%		94.9	%		14,317		86.65
Subtotal /Weighted average						365,045		98.0	%		97.5	%		30,223		84.69
PGRE’s share						365,045		98.0	%		97.5	%		30,223		84.69
San Francisco:
One Market Plaza	South Financial District		49.0	%		1,583,136		97.6	%		97.6	%		117,628		76.45
One Front Street	North Financial District		100.0	%		646,538		96.3	%		96.3	%		42,556		67.86
50 Beale Street	South Financial District		31.1	%		666,456		99.7	%		89.2	%		35,878		61.61
Subtotal /Weighted average						2,896,130		97.8	%		95.4	%		196,062		71.18
PGRE’s share						1,629,542		97.4	%		96.0	%		111,352		71.21
Total /Weighted average						11,904,134		97.0	%		94.3	%	$	802,828	$	72.07
PGRE’s share						8,821,795		96.4	%		93.4	%	$	620,492	$	76.12

⁽¹⁾  See page 43 for our definition of this measure.

⁽²⁾  Represents office and retail space only.

- 31 -

SAME STORE LEASED OCCUPANCY

(unaudited)

				As of September 30, 2018						As of June 30, 2018						Change in Same Store Leased %
Property	Paramount Ownership			Leased % (1)			Same Store Leased % (1)			Leased % (1)			Same Store Leased % (1)
New York:
1633 Broadway		100.0	%		95.4	%		95.4	%		95.4	%		95.4	%		—	%
1301 Avenue of the Americas		100.0	%		97.9	%		97.9	%		97.9	%		97.9	%		—	%
1325 Avenue of the Americas		100.0	%		96.7	%		96.7	%		95.9	%		95.9	%		0.8	%
31 West 52nd Street		100.0	%		95.8	%		95.8	%		95.8	%		95.8	%		—	%
900 Third Avenue		100.0	%		95.5	%		95.5	%		94.2	%		94.2	%		1.3	%
712 Fifth Avenue		50.0	%		91.0	%		91.0	%		89.7	%		89.7	%		1.3	%
60 Wall Street		5.0	%		100.0	%		100.0	%		100.0	%		100.0	%		—	%
Weighted average					96.7	%		96.7	%		96.4	%		96.4	%		0.3	%
PGRE’s share					96.1	%		96.1	%		95.9	%		95.9	%		0.2	%
Washington, D.C.:
425 Eye Street (2)		100.0	%		—	%		—	%		98.7	%		—	%		—	%
2099 Pennsylvania Avenue (3)		100.0	%		—	%		—	%		91.6	%		—	%		—	%
1899 Pennsylvania Avenue		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		—	%
Liberty Place		100.0	%		95.8	%		95.8	%		94.9	%		94.9	%		0.9	%
Weighted average					98.0	%		98.0	%		96.7	%		97.5	%		0.5	%
PGRE’s share					98.0	%		98.0	%		96.7	%		97.5	%		0.5	%
San Francisco:
One Market Plaza		49.0	%		97.6	%		97.6	%		97.9	%		97.9	%		(0.3	%)
One Front Street		100.0	%		96.3	%		96.3	%		99.5	%		99.5	%		(3.2	%)
50 Beale Street		31.1	%		99.7	%		99.7	%		95.8	%		95.8	%		3.9	%
Weighted average					97.8	%		97.8	%		97.7	%		97.7	%		0.1	%
PGRE’s share					97.4	%		97.4	%		98.2	%		98.2	%		(0.8	%)
Weighted average					97.0	%		97.0	%		96.8	%		96.8	%		0.2	%
PGRE’s share					96.4	%		96.4	%		96.4	%		96.4	%		—	%

⁽¹⁾  See page 43 for our definition of this measure.

⁽²⁾  Sold on September 27, 2018.

⁽³⁾  Sold on August 9, 2018.

- 32 -

SAME STORE LEASED OCCUPANCY

(unaudited)

				As of September 30, 2018						As of December 31, 2017						Change in Same Store Leased %
Property	Paramount Ownership			Leased % (1)			Same Store Leased % (1)			Leased % (1)			Same Store Leased % (1)
New York:
1633 Broadway		100.0	%		95.4	%		95.4	%		95.4	%		95.4	%		—	%
1301 Avenue of the Americas		100.0	%		97.9	%		97.9	%		97.9	%		97.9	%		—	%
1325 Avenue of the Americas		100.0	%		96.7	%		96.7	%		80.9	%		80.9	%		15.8	%
31 West 52nd Street		100.0	%		95.8	%		95.8	%		78.0	%		78.0	%		17.8	%
900 Third Avenue		100.0	%		95.5	%		95.5	%		94.7	%		94.7	%		0.8	%
712 Fifth Avenue		50.0	%		91.0	%		91.0	%		95.1	%		95.1	%		(4.1	%)
60 Wall Street		5.0	%		100.0	%		100.0	%		100.0	%		100.0	%		—	%
Weighted average					96.7	%		96.7	%		93.8	%		93.8	%		2.9	%
PGRE’s share					96.1	%		96.1	%		92.4	%		92.4	%		3.7	%
Washington, D.C.:
425 Eye Street (2)		100.0	%		—	%		—	%		98.7	%		—	%		—	%
2099 Pennsylvania Avenue (3)		100.0	%		—	%		—	%		88.9	%		—	%		—	%
1899 Pennsylvania Avenue		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		—	%
Liberty Place		100.0	%		95.8	%		95.8	%		94.9	%		94.9	%		0.9	%
Weighted average					98.0	%		98.0	%		96.1	%		97.5	%		0.5	%
PGRE’s share					98.0	%		98.0	%		96.1	%		97.5	%		0.5	%
San Francisco:
One Market Plaza		49.0	%		97.6	%		97.6	%		97.7	%		97.7	%		(0.1	%)
One Front Street		100.0	%		96.3	%		96.3	%		99.3	%		99.3	%		(3.0	%)
50 Beale Street		31.1	%		99.7	%		99.7	%		82.6	%		82.6	%		17.1	%
Weighted average					97.8	%		97.8	%		94.6	%		94.6	%		3.2	%
PGRE’s share					97.4	%		97.4	%		96.4	%		96.4	%		1.0	%
Weighted average					97.0	%		97.0	%		94.2	%		94.1	%		2.9	%
PGRE’s share					96.4	%		96.4	%		93.5	%		93.3	%		3.1	%

⁽¹⁾  See page 43 for our definition of this measure.

⁽²⁾  Sold on September 27, 2018.

⁽³⁾  Sold on August 9, 2018.

- 33 -

TOP TENANTS AND INDUSTRY DIVERSIFICATION

(unaudited and in thousands, except square feet and per square foot amounts)

								PGRE’s Share of
	Property	Lease Expiration			Total Square Feet Occupied			Total Square Feet Occupied			% of Total Square Feet			Annualized Rent (1)				% of Annualized Rent
														Amount		Per Square Foot
Top 10 Tenants:
As of September 30, 2018
Barclays Capital, Inc.	1301 Avenue of the Americas		Dec-2020			497,418			497,418			5.6	%	$	32,505	$	65.35		5.2	%
Allianz Global Investors, LP	1633 Broadway		Jan-2031			320,911			320,911			3.6	%		28,726		89.51		4.6	%
Credit Agricole Corporate & Investment Bank	1301 Avenue of the Americas		Feb-2023			312,679			312,679			3.5	%		26,794		85.69		4.3	%
Clifford Chance LLP	31 West 52nd Street		Jun-2024			328,992			328,992			3.7	%		26,538		80.66		4.3	%
Norton Rose Fulbright	1301 Avenue of the Americas		Sep-2034	(2)		320,325	(2)		320,325	(2)		3.6	%		25,537		79.72		4.1	%
Morgan Stanley & Company	1633 Broadway		Mar-2032			260,829			260,829			3.0	%		19,543		74.93		3.1	%
WMG Acquisition Corp. (Warner Music Group)	1633 Broadway		Jul-2029			293,888			293,888			3.3	%		17,423		59.28		2.8	%
First Republic Bank	One Front Street		Jun-2025			232,479			232,479			2.6	%		15,527		66.79		2.5	%
Showtime Networks, Inc.	1633 Broadway		Jan-2026			238,880			238,880			2.7	%		14,852		62.17		2.4	%
Kasowitz Benson Torres & Friedman, LLP	1633 Broadway		Mar-2037			203,394			203,394			2.3	%		14,680		72.18		2.4	%

	PGRE’s Share of
	Square Feet Occupied		% of Occupied Square Feet			Annualized Rent (1)		% of Annualized Rent
Industry Diversification:
As of September 30, 2018
Financial Services- Commercial and Investment Banking		1,882,646		22.9	%	$	137,971		22.2	%
Legal Services		1,793,487		21.9	%		137,019		22.1	%
Technology and Media		1,614,461		19.7	%		111,159		17.9	%
Financial Services, all others		967,964		11.8	%		84,683		13.6	%
Insurance		554,680		6.8	%		44,618		7.2	%
Retail		190,059		2.3	%		19,060		3.1	%
Consumer Products		192,620		2.3	%		14,882		2.4	%
Travel and Leisure		203,575		2.5	%		13,796		2.2	%
Real Estate		175,052		2.1	%		12,911		2.1	%
Other		632,114		7.7	%		44,393		7.2	%

⁽¹⁾ See page 43 for our definition of this measure.

⁽²⁾ 116,462 of the square feet leased expires on March 31, 2032.

- 34 -

LEASING ACTIVITY⁽¹⁾

(unaudited)

	Total			New York			Washington, D.C.			San Francisco
Three Months Ended September 30, 2018
Total square feet leased		203,143			58,721			21,452			122,970
PGRE’s share of total square feet leased:		127,194			50,549			21,452			55,193
Initial rent (2)	$	88.57		$	86.74		$	79.74		$	92.79
Weighted average lease term (in years)		6.7			4.4			12.6			7.0
Tenant improvements and leasing commissions:
Per square foot	$	69.98		$	29.18		$	153.65		$	82.65
Per square foot per annum	$	10.52		$	6.69		$	12.15		$	11.83
Percentage of initial rent		11.9	%		7.7	%		15.2	%		12.7	%
Rent concessions:
Average free rent period (in months)		4.3			3.0			11.9			3.3
Average free rent period per annum (in months)		0.6			0.7			0.9			0.5
Second generation space: (2)
Square feet		101,850			50,045			5,409			46,396
GAAP basis:
Straight-line rent	$	89.61		$	81.99		$	—		$	97.82
Priorstraight-line rent	$	75.01		$	74.67		$	—		$	75.38
Percentage increase		19.5	%		9.8	%		—			29.8	%
Cash basis
Initial rent (2)	$	90.91		$	86.74		$	—		$	95.41
Prior escalated rent	$	79.49		$	84.22		$	—		$	74.39
Percentage increase		14.4	%		3.0	%		—			28.3	%

⁽¹⁾ The leasing statistics, except for square feet leased, represent office space only.

⁽²⁾ See page 43 for our definition of this measure.

- 35 -

LEASING ACTIVITY⁽¹⁾

(unaudited)

	Total			New York			Washington, D.C.			San Francisco
Nine Months Ended September 30, 2018
Total square feet leased		800,832			463,916			26,381			310,535
PGRE’s share of total square feet leased:		622,887			447,614			26,381			148,892
Initial rent (2)	$	82.44		$	81.83		$	76.15		$	85.14
Weighted average lease term (in years)		10.4			11.7			11.1			6.4
Tenant improvements and leasing commissions:
Per square foot	$	101.35		$	110.58		$	129.56		$	69.84
Per square foot per annum	$	9.75		$	9.45		$	11.69		$	10.90
Percentage of initial rent		11.8	%		11.5	%		15.3	%		12.8	%
Rent concessions:
Average free rent period (in months)		8.6			10.6			10.1			2.5
Average free rent period per annum (in months)		0.8			0.9			0.9			0.4
Second generation space: (2)
Square feet		350,711			231,730			7,076			111,905
GAAP basis:
Straight-line rent	$	84.16		$	81.85		$	—		$	88.89
Priorstraight-line rent	$	73.84		$	76.00		$	—		$	69.41
Percentage increase		14.0	%		7.7	%		—			28.1	%
Cash basis:
Initial rent (2)	$	86.05		$	85.27		$	—		$	87.63
Prior escalated rent	$	73.48		$	77.41		$	—		$	65.41
Percentage increase		17.1	%		10.2	%		—			34.0	%

⁽¹⁾  The leasing statistics, except for square feet leased, represent office space only.

⁽²⁾  See page 43 for our definition of this measure.

- 36 -

LEASE EXPIRATIONS - TOTAL PORTFOLIO

(unaudited and in thousands, except square feet and per square foot amounts)

	Total Square Feet of Expiring Leases		PGRE’s Share of
Year of Lease Expiration (2)			Square Feet of Expiring Leases		Annualized Rent (1)				% of Annualized Rent
					Amount		Per Square Foot (3)
Month to Month		9,081		6,984	$	502	$	50.83		0.1	%
4Q 2018		36,983		27,134		1,883		69.41		0.3	%
1Q 2019		198,107		167,467		13,076		77.92		2.0	%
2Q 2019		66,205		60,907		3,647		60.57		0.6	%
3Q 2019		161,855		158,206		13,432		84.16		2.1	%
4Q 2019		77,553		55,830		4,699		84.32		0.7	%
Total 2019		503,720		442,410		34,854		78.61		5.4	%
2020		707,382		428,288		31,262		72.65		4.9	%
2021		1,322,328		1,104,648		76,229		71.18		11.9	%
2022		2,350,278		547,887		39,789		79.20		6.2	%
2023		764,124		700,490		56,139		82.64		8.7	%
2024		712,347		657,300		51,544		78.60		8.0	%
2025		1,034,174		693,700		52,430		75.52		8.2	%
2026		792,435		684,328		52,088		72.72		8.1	%
2027		169,260		131,905		10,670		80.91		1.7	%
Thereafter		3,104,226		3,049,058		234,531		76.62		36.5	%

⁽¹⁾ See page 43 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⁾ Represents office and retail space only.

- 37 -

LEASE EXPIRATIONS - NEW YORK

(unaudited and in thousands, except square feet and per square foot amounts)

	Total Square Feet of Expiring Leases		PGRE’s Share of
Year of Lease Expiration (2)			Square Feet of Expiring Leases		Annualized Rent (1)				% of Annualized Rent
					Amount		Per Square Foot (3)
Month to Month		1,322		1,322	$	254	$	95.38		0.1	%
4Q 2018		36,983		27,134		1,883		69.41		0.4	%
1Q 2019		96,634		91,732		8,208		89.19		1.6	%
2Q 2019		13,826		11,213		680		64.97		0.1	%
3Q 2019		156,877		154,261		13,094		84.13		2.6	%
4Q 2019		32,600		28,827		2,903		101.25		0.6	%
Total 2019		299,937		286,033		24,885		86.84		4.9	%
2020		297,376		253,350		19,535		78.31		3.9	%
2021		958,624		910,899		63,437		72.86		12.7	%
2022		1,786,888		231,932		13,526		68.81		2.7	%
2023		550,709		521,756		40,285		80.83		8.1	%
2024		592,606		573,498		45,110		78.85		9.1	%
2025		138,735		102,676		9,189		89.19		1.8	%
2026		591,703		571,318		43,247		71.64		8.7	%
2027		85,378		85,378		7,197		84.29		1.4	%
Thereafter		2,991,678		2,976,663		229,525		76.79		46.2	%

⁽¹⁾ See page 43 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⁾ Represents office and retail space only.

- 38 -

LEASE EXPIRATIONS - WASHINGTON, D.C.

(unaudited and in thousands, except square feet and per square foot amounts)

			PGRE’s Share of
	Total Square Feet of Expiring Leases				Annualized Rent (1)				% of Annualized Rent
Year of Lease Expiration (2)			Square Feet of Expiring Leases		Amount		Per Square Foot (3)
Month to Month		—		—	$	—	$	—		—	%
4Q 2018		—		—		—		—		—	%
1Q 2019		29,066		29,066		2,251		77.43		7.4	%
2Q 2019		—		—		—		—		—	%
3Q 2019		3,478		3,478		304		87.30		1.0	%
4Q 2019		2,461		2,461		207		84.19		0.7	%
Total 2019		35,005		35,005		2,762		78.89		9.1	%
2020		25,245		25,245		2,094		82.95		6.9	%
2021		9,877		9,877		1,253		83.33		4.1	%
2022		24,607		24,607		1,928		78.36		6.4	%
2023		136,229		136,229		12,021		86.89		39.6	%
2024		20,451		20,451		1,847		90.33		6.1	%
2025		49,390		49,390		4,477		90.64		14.7	%
2026		28,246		28,246		2,130		75.40		7.0	%
2027		10,632		10,632		935		87.91		3.1	%
Thereafter		10,843		10,843		906		83.59		3.0	%

⁽¹⁾ See page 43 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⁾ Represents office and retail space only.

- 39 -

LEASE EXPIRATIONS - SAN FRANCISCO

(unaudited and in thousands, except square feet and per square foot amounts)

	Total		PGRE’s Share of
Year of Lease Expiration (2)	Square Feet		Square Feet		Annualized Rent (1)				% of
	of Expiring Leases		of Expiring Leases		Amount		Per Square Foot (3)		Annualized Rent
Month to Month		7,759		5,662	$	248	$	39.78		0.2	%
4Q 2018		—		—		—		—		—	%
1Q 2019		72,407		46,669		2,617		56.07		2.3	%
2Q 2019		52,379		49,694		2,967		59.70		2.6	%
3Q 2019		1,500		467		34		72.00		0.0	%
4Q 2019		42,492		24,542		1,589		64.76		1.4	%
Total 2019		168,778		121,372		7,207		59.37		6.3	%
2020		384,761		149,693		9,633		61.37		8.5	%
2021		353,827		183,872		11,539		62.82		10.2	%
2022		538,783		291,348		24,335		83.61		21.5	%
2023		77,186		42,505		3,833		89.59		3.4	%
2024		99,290		63,351		4,587		72.55		4.0	%
2025		846,049		541,634		38,764		71.59		34.2	%
2026		172,486		84,764		6,711		79.13		5.9	%
2027		73,250		35,895		2,538		70.79		2.2	%
Thereafter		101,705		61,552		4,100		67.15		3.6	%

⁽¹⁾ See page 43 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⁾ Represents office and retail space only.

- 40 -

CASH BASIS CAPITAL EXPENDITURES

(unaudited and in thousands)

	Three Months Ended September 30, 2018
	Total		New York		Washington, D.C		San Francisco		Other
Capital expenditures: (1)
Expenditures to maintain assets	$	2,858	$	2,455	$	36	$	354	$	13
Second generation tenant improvements		22,176		18,887		—		3,289		—
Second generation leasing commissions		5,817		2,196		926		2,695		—
First generation leasing costs and capital expenditures		2,701		1,745		687		269		—
Total Capital Expenditures	$	33,552	$	25,283	$	1,649	$	6,607	$	13
Redevelopment Expenditures (1)
31 West 52nd Street (Lobby Renovation)	$	3,738	$	3,738	$	—	$	—	$	—
One Market Plaza		1,365		—		—		1,365		—
Other		882		532		—		350		—
Total Redevelopment Expenditures	$	5,985	$	4,270	$	—	$	1,715	$	—
	Three Months Ended September 30, 2017
	Total		New York		Washington, D.C		San Francisco		Other
Capital expenditures: (1)
Expenditures to maintain assets	$	2,861	$	1,876	$	661	$	196	$	128
Second generation tenant improvements		18,763		15,818		2		2,943		—
Second generation leasing commissions		3,935		2,260		—		1,675		—
First generation leasing costs and capital expenditures		7,760		6,573		1,166		21		—
Total Capital Expenditures	$	33,319	$	26,527	$	1,829	$	4,835	$	128
Redevelopment Expenditures (1)
31 West 52nd Street (Lobby Renovation)	$	951	$	951	$	—	$	—	$	—
One Market Plaza		899		—		—		899		—
Other		863		710		—		153		—
Total Redevelopment Expenditures	$	2,713	$	1,661	$	—	$	1,052	$	—

⁽¹⁾ See page 43 for our definition of this measure.

- 41 -

CASH BASIS CAPITAL EXPENDITURES

(unaudited and in thousands)

	Nine Months Ended September 30, 2018
	Total		New York		Washington, D.C		San Francisco		Other
Capital expenditures: (1)
Expenditures to maintain assets	$	9,056	$	7,096	$	650	$	988	$	322
Second generation tenant improvements		48,018		42,325		123		5,570		—
Second generation leasing commissions		15,350		9,616		1,068		4,666		—
First generation leasing costs and capital expenditures		8,071		1,856		2,746		3,469		—
Total Capital Expenditures	$	80,495	$	60,893	$	4,587	$	14,693	$	322
Redevelopment Expenditures (1)
31 West 52nd Street (Lobby Renovation)	$	15,918	$	15,918	$	—	$	—	$	—
One Market Plaza		3,377		—		—		3,377		—
Other		1,502		1,152		—		350		—
Total Redevelopment Expenditures	$	20,797	$	17,070	$	—	$	3,727	$	—
	Nine Months Ended September 30, 2017
	Total		New York		Washington, D.C		San Francisco		Other
Capital expenditures: (1)
Expenditures to maintain assets	$	10,415	$	6,912	$	1,250	$	1,901	$	352
Second generation tenant improvements		26,871		20,759		4		6,108		—
Second generation leasing commissions		13,102		6,047		—		7,055		—
First generation leasing costs and capital expenditures		19,492		12,032		3,865		3,595		—
Total Capital Expenditures	$	69,880	$	45,750	$	5,119	$	18,659	$	352
Redevelopment Expenditures (1)
One Market Plaza	$	4,105	$	—	$	—	$	4,105	$	—
Residential Development Fund		2,896		—		—		—		2,896
31 West 52nd Street (Lobby Renovation)		1,130		1,130		—		—		—
Other		2,335		2,152		—		183		—
Total Redevelopment Expenditures	$	10,466	$	3,282	$	—	$	4,288	$	2,896

⁽¹⁾ See page 43 for our definition of this measure.

- 42 -

DEFINITIONS

We use and present variousnon-GAAP measures in this Supplemental Operating and Financial Data report. The following section contains definitions of these measures, describes our use of them and provides information regarding why we believe they are meaningful. Other real estate companies may use different methodologies for calculating these measures, and accordingly, our presentation of these measures may not be comparable to other real estate companies. Thesenon-GAAP measures should not be considered a substitute for, and should only be considered together with and as a supplement to, financial information presented in accordance with GAAP.

Funds from Operations (“FFO”)is a supplemental measure of our performance. FFO is presented 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. 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 is not intended to be a measure of cash flow or liquidity.FFO attributable to common stockholdersrepresents the Company’s share of FFO that is attributable to common stockholders and is calculated by reducing from FFO, the noncontrolling interests’ share of FFO in consolidated joint ventures, real estate funds and Operating Partnership.

Core Funds from Operations (“Core FFO”)is an alternative measure of our operating performance, which adjusts FFO for certain other items that we believe enhance the comparability of our FFO across periods. Core FFO, when applicable, excludes the impact of certain items, including, transaction related costs, realized and unrealized gains or losses on real estate fund investments, unrealized gains or losses on interest rate swaps, severance costs and gains or losses on early extinguishment of debt, in order to reflect the Core FFO of our real estate portfolio and operations. In future periods, we may also exclude other items from Core FFO that we believe may help investors compare our results. Core FFO is not intended to be a measure of cash flow or liquidity.Core FFO attributable to common stockholdersrepresents the Company’s share of Core FFO that is attributable to common stockholders and is calculated by reducing from Core FFO, the noncontrolling interests’ share of Core FFO in consolidated joint ventures, real estate funds and Operating Partnership.

Funds Available for Distribution (“FAD”)is a supplemental measure of our operating performance and is calculated as Core FFO adjusted for (i) capital expenditures to maintain assets, (ii) tenant improvements and leasing commissions incurred for second generation leases, (iii)straight-line rent adjustments, (iv) amortization of above andbelow-market leases, net, (v) amortization ofstock-based compensation expense and (vi) amortization of deferred financing costs. FAD is commonly used in the real estate industry along with cash flow from operating activities as a measure of the ability to generate cash from operations and the ability to fund cash needs and make distributions to our stockholders. FAD provides information regarding our operating performance that would not otherwise be available and is useful to investors and analysts in assessing our operating performance. Additionally, although FAD is not intended to be a liquidity measure, as it does not make adjustments for the changes in working capital, we believe that FAD may provide investors and analysts with useful supplemental information regarding our ability to generate cash from operations and our ability to make distributions to our stockholders. Furthermore, we believe that FAD is frequently used by investors and analysts in evaluating our performance as a REIT.FAD attributable to common stockholdersrepresents the Company’s share of FAD that is attributable to common stockholders and is calculated by reducing from FAD, the noncontrolling interests’ share of FAD in consolidated joint ventures, real estate funds and Operating Partnership.

Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (“EBITDAre”)is a supplemental measure of our operating performance. EBITDAre is presented in accordance with the definition adopted by Nareit. Nareit defines EBITDAre as GAAP net income (loss) adjusted to exclude interest expense, income taxes, depreciation and amortization expenses, net gains from sales of depreciated real estate assets and impairment losses on depreciable real estate, including our share of such adjustments of unconsolidated joint ventures. EBITDAre provides information regarding our operating performance that would not otherwise be available and may be useful to an investor in assessing our ability to incur and service debt. EBITDAre should not be considered as an indication of our financial performance or a measure of our cash flow or liquidity. We also presentPGRE’s share of EBITDArewhich represents our share of EBITDAre generated by our consolidated and unconsolidated joint ventures, based on our percentage ownership in the underlying assets.

- 43 -

DEFINITIONS - CONTINUED

Adjusted EBITDAre is a supplemental measure that is calculated by adjusting EBITDAre to eliminate the impact of the performance of our real estate funds, unrealized gains or losses on interest rate swaps, transaction related costs, gains or losses on early extinguishment of debt and certain other items that may vary from period to period. Adjusted EBITDAre enhances the comparability of EBITDAre across periods. In future periods, we may also exclude other items from Adjusted EBITDAre that we believe may help investors compare our results. We also presentPGRE’s share of Adjusted EBITDAre,which represents our share of Adjusted EBITDAre generated by our consolidated and unconsolidated joint ventures based on our percentage ownership in the underlying assets.

Net Operating Income (“NOI”)is used to measure the operating performance of our properties. NOI consists of property-related revenue (which includes rental income, tenant reimbursement income, lease termination 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 presentCash NOIwhich 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 presentPGRE’s share of NOI and Cash NOIwhich represents our share of NOI and Cash NOI of consolidated and unconsolidated joint ventures, based on our percentage ownership in the underlying assets. We use NOI and Cash NOI internally as performance measures and believe they provide useful information to investors regarding our financial condition and results of operations because they reflect only those income and expense items that are incurred at property level.

Same Store NOIis used to measure the operating performance of properties that were owned by us in a similar manner during both the current period and prior reporting periods, and represents Same Store NOI from consolidated and unconsolidated joint ventures based on our percentage ownership in the underlying assets. Same Store NOI also excludes lease termination income, bad debt expense and certain other items that may vary from period to period. We also presentSame 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.

PGRE’s Share of Total Debtrepresents our share of debt of consolidated and unconsolidated joint ventures, based on our percentage ownership in the underlying assets. We believe that PGRE’s share of total debt provides useful information to investors regarding our financial condition because it includes our share of debt from unconsolidated joint ventures and excludes the noncontrolling interests’ share of debt from consolidated joint ventures that is attributable to our partners.

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

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

Same Store Leased %represents percentage of square feet that is leased, including signed leases not yet commenced, for properties that were owned by us in a similar manner during both the current period and prior reporting periods.

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

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

Prior Escalated Rent represents the weighted average cash basis rent (including reimbursements) per square foot at expiration.

Second Generation Spacerepresents space leased that has been vacant for less than twelve months.

Capital Expendituresconsist of expenditures to maintain assets, tenant improvement allowances and leasing commissions.Expenditures to Maintain Assetsinclude capital expenditures to maintain current revenues.Second Generation Tenant Improvements and Leasing Commissionsrepresent tenant improvements and leasing commissions incurred in leasing second generation space.First Generation Leasing Costs and Other Capital Expendituresinclude 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 Expendituresconsist of hard and soft costs related to the development of a property in getting it ready for its intended use.

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