Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 15, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | PARAMOUNT GROUP, INC. | |
Trading Symbol | PGRE | |
Title of 12(b) Security | Common stock of Paramount Group, Inc.,$0.01 par value per share | |
Security Exchange Name | NYSE | |
Entity Central Index Key | 0001605607 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity File Number | 001-36746 | |
Entity Tax Identification Number | 32-0439307 | |
Entity Address, Address Line One | 1633 Broadway | |
Entity Address, Address Line Two | Suite 1801 | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10019 | |
City Area Code | 212 | |
Local Phone Number | 237-3100 | |
Entity Incorporation, State or Country Code | MD | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding | 221,761,902 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | |
Real estate, at cost: | |||
Land | $ 1,966,237 | $ 1,966,237 | |
Buildings and improvements | 5,957,831 | 5,923,648 | |
Rental property, at cost | 7,924,068 | 7,889,885 | |
Accumulated depreciation and amortization | (873,732) | (790,216) | |
Real estate, net | 7,050,336 | 7,099,669 | |
Cash and cash equivalents | 522,502 | 306,215 | |
Restricted cash | 33,957 | 25,272 | |
Investments in unconsolidated joint ventures | 421,183 | 449,180 | |
Investments in unconsolidated real estate funds | 13,041 | 10,317 | |
Accounts and other receivables | 18,738 | 19,231 | |
Due from affiliates | 36,918 | ||
Deferred rent receivable | 321,480 | 301,588 | |
Deferred charges, net of accumulated amortization of $49,314 and $42,096 | 123,446 | 126,367 | |
Intangible assets, net of accumulated amortization of $259,158 and $262,930 | 179,244 | 203,169 | |
Assets related to discontinued operations | 103,915 | 104,836 | |
Other assets | 45,340 | 51,373 | |
Total assets | [1] | 8,833,182 | 8,734,135 |
Liabilities and Equity | |||
Notes and mortgages payable, net of unamortized deferred financing costs of $22,286 and $25,792 | 3,790,430 | 3,783,851 | |
Revolving credit facility | 200,000 | 36,918 | |
Accounts payable and accrued expenses | 105,924 | 117,356 | |
Dividends and distributions payable | 24,292 | 25,255 | |
Intangible liabilities, net of accumulated amortization of $98,208 and $100,881 | 65,769 | 73,789 | |
Other liabilities | 59,091 | 66,004 | |
Total liabilities | [1] | 4,245,506 | 4,103,173 |
Commitments and contingencies | |||
Paramount Group, Inc. equity: | |||
Common stock $0.01 par value per share; authorized 900,000,000 shares; issued and outstanding 221,763,687 and 227,432,030 shares in 2020 and 2019, respectively | 2,219 | 2,274 | |
Additional paid-in-capital | 4,133,542 | 4,133,184 | |
Earnings less than distributions | (397,220) | (349,557) | |
Accumulated other comprehensive loss | (15,031) | (171) | |
Paramount Group, Inc. equity | 3,723,510 | 3,785,730 | |
Noncontrolling interests in: | |||
Consolidated joint ventures | 436,183 | 360,778 | |
Consolidated real estate fund | 79,243 | 72,396 | |
Operating Partnership (20,780,392 and 24,758,472 units outstanding) | 348,740 | 412,058 | |
Total equity | 4,587,676 | 4,630,962 | |
Total liabilities and equity | $ 8,833,182 | $ 8,734,135 | |
[1] | Represents the consolidated assets and liabilities of Paramount Group Operating Partnership LP, a Delaware limited partnership (the “Operating Partnership”). The Operating Partnership is a consolidated variable interest entity (“VIE”), of which we are the sole general partner and own approximately 91.4% as of June 30, 2020. The assets and liabilities of the Operating Partnership, as of June 30, 2020, include $4,019,707 and $2,537,846 of assets and liabilities, respectively, of certain VIEs that are consolidated by the Operating Partnership. See Note 12, Variable Interest Entities (“VIEs”). |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parentheticals) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2019 | ||
Deferred charges, accumulated amortization | $ 49,314 | $ 42,096 | |
Intangible assets, accumulated amortization | 259,158 | 262,930 | |
Notes and mortgages payable, net of unamortized deferred financing costs | 22,286 | 25,792 | |
Intangible liabilities, accumulated amortization | $ 98,208 | $ 100,881 | |
Common stock, par value | $ 0.01 | $ 0.01 | |
Common stock, shares authorized | 900,000,000 | 900,000,000 | |
Common stock, shares issued | 221,763,687 | 227,432,030 | |
Common stock, shares outstanding | 221,763,687 | 227,432,030 | |
Operating partnership, units outstanding | 20,780,392 | 24,758,472 | |
Total assets | [1] | $ 8,833,182 | $ 8,734,135 |
Total liabilities | [1] | 4,245,506 | 4,103,173 |
Variable Interest Entities [Member] | |||
Total assets | 4,019,707 | 1,959,266 | |
Total liabilities | $ 2,537,846 | $ 1,273,464 | |
Variable Interest Entities [Member] | Paramount Group Operating Partnership [Member] | |||
Percentage of ownership in operating partnership | 91.40% | ||
[1] | Represents the consolidated assets and liabilities of Paramount Group Operating Partnership LP, a Delaware limited partnership (the “Operating Partnership”). The Operating Partnership is a consolidated variable interest entity (“VIE”), of which we are the sole general partner and own approximately 91.4% as of June 30, 2020. The assets and liabilities of the Operating Partnership, as of June 30, 2020, include $4,019,707 and $2,537,846 of assets and liabilities, respectively, of certain VIEs that are consolidated by the Operating Partnership. See Note 12, Variable Interest Entities (“VIEs”). |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues: | ||||
Rental revenue | $ 163,989 | $ 174,044 | $ 339,414 | $ 349,385 |
Fee and other income | 7,129 | 7,299 | 15,690 | 16,347 |
Total revenues | 171,118 | 181,343 | 355,104 | 365,732 |
Expenses: | ||||
Operating | 64,313 | 64,736 | 131,327 | 130,197 |
Depreciation and amortization | 58,716 | 60,277 | 117,143 | 120,989 |
General and administrative | 17,901 | 17,695 | 30,150 | 35,138 |
Transaction related costs | 258 | 182 | 461 | 918 |
Total expenses | 141,188 | 142,890 | 279,081 | 287,242 |
Other income (expense): | ||||
Loss from unconsolidated joint ventures | (5,955) | (456) | (10,176) | (1,483) |
Income from unconsolidated real estate funds | 89 | 19 | 141 | 65 |
Interest and other income, net | 2,252 | 2,583 | 1,256 | 6,483 |
Interest and debt expense | (36,009) | (37,213) | (72,628) | (74,137) |
(Loss) income from continuing operations, before income taxes | (9,693) | 3,386 | (5,384) | 9,418 |
Income tax expense | (138) | (268) | (742) | (1,406) |
(Loss) income from continuing operations, net | (9,831) | 3,118 | (6,126) | 8,012 |
Income from discontinued operations, net | 2,147 | 2,056 | 3,668 | 4,162 |
Net (loss) income | (7,684) | 5,174 | (2,458) | 12,174 |
Less net (income) loss attributable to noncontrolling interests in: | ||||
Consolidated joint ventures | (405) | (2,408) | (1,919) | (5,202) |
Consolidated real estate fund | 1,235 | (53) | 1,212 | (147) |
Operating Partnership | 584 | (258) | 243 | (661) |
Net (loss) income attributable to common stockholders | $ (6,270) | $ 2,455 | $ (2,922) | $ 6,164 |
(Loss) income per Common Share - Basic: | ||||
(Loss) income from continuing operations, net | $ (0.04) | $ 0 | $ (0.03) | $ 0.01 |
Income from discontinued operations, net | 0.01 | 0.01 | 0.02 | 0.02 |
Net (loss) income per common share | $ (0.03) | $ 0.01 | $ (0.01) | $ 0.03 |
Weighted average common shares outstanding | 221,573,199 | 234,329,904 | 224,671,206 | 233,877,117 |
(Loss) income per Common Share - Diluted: | ||||
(Loss) income from continuing operations, net | $ (0.04) | $ 0 | $ (0.03) | $ 0.01 |
Income from discontinued operations, net | 0.01 | 0.01 | 0.02 | 0.02 |
Net (loss) income per common share | $ (0.03) | $ 0.01 | $ (0.01) | $ 0.03 |
Weighted average common shares outstanding | 221,573,199 | 234,355,864 | 224,671,206 | 233,908,236 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (7,684) | $ 5,174 | $ (2,458) | $ 12,174 |
Other comprehensive loss: | ||||
Change in value of interest rate swaps | (15,345) | (24,371) | ||
Pro rata share of other comprehensive loss of unconsolidated joint ventures | (1,696) | (76) | (16,357) | (184) |
Comprehensive loss | (9,380) | (10,247) | (18,815) | (12,381) |
Less comprehensive (income) loss attributable to noncontrolling interests in: | ||||
Consolidated joint ventures | (405) | (2,408) | (1,919) | (5,202) |
Consolidated real estate fund | 1,233 | (48) | 1,208 | (99) |
Operating Partnership | 729 | 1,209 | 1,744 | 1,697 |
Comprehensive loss attributable to common stockholders | $ (7,823) | $ (11,494) | $ (17,782) | $ (15,985) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid in Capital [Member] | Earnings Less than Distributions [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Noncontrolling Interest [Member]Consolidated Joint Ventures [Member] | Noncontrolling Interest [Member]Consolidated Real Estate Fund [Member] | Noncontrolling Interest [Member]Operating Partnership [Member] |
Beginning balance at Dec. 31, 2018 | $ 4,891,664 | $ 2,329 | $ 4,201,756 | $ (219,906) | $ 16,621 | $ 394,995 | $ 66,887 | $ 428,982 |
Common stock, shares outstanding at Dec. 31, 2018 | 233,136,000 | |||||||
Net (loss) income | 12,174 | 6,164 | 5,202 | 147 | 661 | |||
Common shares issued upon redemption of common units | $ 14 | 23,976 | ||||||
Common shares issued upon redemption of common units | 1,406,000 | |||||||
Common shares issued under Omnibus share plan, net of shares withheld for taxes | (307) | $ 3 | (310) | |||||
Common shares issued under Omnibus share plan, net of shares withheld for taxes | 56,000 | |||||||
Repurchases of common shares | (6,488) | $ (5) | (6,483) | |||||
Repurchases of common shares, shares | (474,000) | |||||||
Dividends and distributions | (51,902) | (46,887) | (5,015) | |||||
Contributions from noncontrolling interests | 14,966 | 14,966 | ||||||
Distributions to noncontrolling interests | (34,919) | (34,919) | ||||||
Change in value of interest rate swaps | (24,371) | (22,026) | (2,345) | |||||
Pro rata share of other comprehensive loss of unconsolidated joint ventures | (184) | (120) | (51) | (13) | ||||
Amortization of equity awards | 12,756 | 1,340 | 11,416 | |||||
Reallocation of noncontrolling interest | (6,396) | 6,396 | ||||||
Ending balance at Jun. 30, 2019 | 4,813,389 | $ 2,341 | 4,214,193 | (260,939) | (5,525) | 365,278 | 81,949 | 416,092 |
Common stock, shares outstanding at Jun. 30, 2019 | 234,124,000 | |||||||
Redemption of minority interest in operating partnerships | (23,990) | |||||||
Beginning balance at Mar. 31, 2019 | 4,854,636 | $ 2,345 | 4,218,060 | (239,949) | 8,421 | 367,012 | 81,434 | 417,313 |
Common stock, shares outstanding at Mar. 31, 2019 | 234,478,000 | |||||||
Net (loss) income | 5,174 | 2,455 | 2,408 | 53 | 258 | |||
Common shares issued upon redemption of common units | $ 1 | 2,007 | ||||||
Common shares issued upon redemption of common units | 118,000 | |||||||
Common shares issued under Omnibus share plan, net of shares withheld for taxes | (6) | (6) | ||||||
Common shares issued under Omnibus share plan, net of shares withheld for taxes | 2,000 | |||||||
Repurchases of common shares | (6,488) | $ (5) | (6,483) | |||||
Repurchases of common shares, shares | (474,000) | |||||||
Dividends and distributions | (25,953) | (23,439) | (2,514) | |||||
Contributions from noncontrolling interests | 470 | 470 | ||||||
Distributions to noncontrolling interests | (4,142) | (4,142) | ||||||
Change in value of interest rate swaps | (15,345) | (13,884) | (1,461) | |||||
Pro rata share of other comprehensive loss of unconsolidated joint ventures | (76) | (62) | (8) | (6) | ||||
Amortization of equity awards | 5,119 | 643 | 4,476 | |||||
Reallocation of noncontrolling interest | (34) | 34 | ||||||
Ending balance at Jun. 30, 2019 | 4,813,389 | $ 2,341 | 4,214,193 | (260,939) | (5,525) | 365,278 | 81,949 | 416,092 |
Common stock, shares outstanding at Jun. 30, 2019 | 234,124,000 | |||||||
Redemption of minority interest in operating partnerships | (2,008) | |||||||
Beginning balance at Dec. 31, 2019 | $ 4,630,962 | $ 2,274 | 4,133,184 | (349,557) | (171) | 360,778 | 72,396 | 412,058 |
Common stock, shares outstanding at Dec. 31, 2019 | 227,432,030 | 227,432,000 | ||||||
Repurchases of common shares | $ (100,000) | |||||||
Repurchases of common shares, shares | (10,856,865) | |||||||
Ending balance at Mar. 31, 2020 | 4,507,192 | $ 2,219 | 4,102,287 | (368,767) | (13,478) | 359,120 | 80,476 | 345,335 |
Common stock, shares outstanding at Mar. 31, 2020 | 221,750,000 | |||||||
Beginning balance at Dec. 31, 2019 | $ 4,630,962 | $ 2,274 | 4,133,184 | (349,557) | (171) | 360,778 | 72,396 | 412,058 |
Common stock, shares outstanding at Dec. 31, 2019 | 227,432,030 | 227,432,000 | ||||||
Net (loss) income | $ (2,458) | (2,922) | 1,919 | (1,212) | (243) | |||
Common shares issued upon redemption of common units | $ 51 | 85,260 | ||||||
Common shares issued upon redemption of common units | 5,126,000 | |||||||
Common shares issued under Omnibus share plan, net of shares withheld for taxes | (316) | $ 3 | (319) | |||||
Common shares issued under Omnibus share plan, net of shares withheld for taxes | 63,000 | |||||||
Repurchases of common shares | (100,000) | $ (109) | (99,891) | |||||
Repurchases of common shares, shares | (10,857,000) | |||||||
Dividends and distributions | (48,634) | (44,422) | (4,212) | |||||
Contributions from noncontrolling interests | 11,555 | 3,500 | 8,055 | |||||
Distributions to noncontrolling interests | (6,357) | (6,357) | ||||||
Pro rata share of other comprehensive loss of unconsolidated joint ventures | (16,357) | (14,860) | 4 | (1,501) | ||||
Amortization of equity awards | 9,708 | 692 | 9,016 | |||||
Reallocation of noncontrolling interest | (18,933) | 18,933 | ||||||
Sale of a 10.0% interest in 1633 Broadway | 109,573 | 33,230 | 76,343 | |||||
Ending balance at Jun. 30, 2020 | $ 4,587,676 | $ 2,219 | 4,133,542 | (397,220) | (15,031) | 436,183 | 79,243 | 348,740 |
Common stock, shares outstanding at Jun. 30, 2020 | 221,763,687 | 221,764,000 | ||||||
Redemption of minority interest in operating partnerships | (85,311) | |||||||
Beginning balance at Mar. 31, 2020 | $ 4,507,192 | $ 2,219 | 4,102,287 | (368,767) | (13,478) | 359,120 | 80,476 | 345,335 |
Common stock, shares outstanding at Mar. 31, 2020 | 221,750,000 | |||||||
Net (loss) income | (7,684) | (6,270) | 405 | (1,235) | (584) | |||
Common shares issued under Omnibus share plan, net of shares withheld for taxes | (7) | (7) | ||||||
Common shares issued under Omnibus share plan, net of shares withheld for taxes | 14,000 | |||||||
Repurchases of common shares, shares | 0 | |||||||
Dividends and distributions | (24,292) | (22,176) | (2,116) | |||||
Contributions from noncontrolling interests | 3,500 | 3,500 | ||||||
Distributions to noncontrolling interests | (3,185) | (3,185) | ||||||
Pro rata share of other comprehensive loss of unconsolidated joint ventures | (1,696) | (1,553) | 2 | (145) | ||||
Amortization of equity awards | 4,275 | 294 | 3,981 | |||||
Reallocation of noncontrolling interest | (2,269) | 2,269 | ||||||
Sale of a 10.0% interest in 1633 Broadway | 109,573 | 33,230 | 76,343 | |||||
Ending balance at Jun. 30, 2020 | $ 4,587,676 | $ 2,219 | $ 4,133,542 | $ (397,220) | $ (15,031) | $ 436,183 | $ 79,243 | $ 348,740 |
Common stock, shares outstanding at Jun. 30, 2020 | 221,763,687 | 221,764,000 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) (Parentheticals) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement Of Stockholders Equity [Abstract] | ||||
Dividends and distributions, Per share and unit | $ 0.10 | $ 0.10 | $ 0.20 | $ 0.20 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash Flows from Operating Activities: | ||
Net (loss) income | $ (2,458) | $ 12,174 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation and amortization | 117,833 | 125,714 |
Straight-lining of rental revenue | (19,731) | (22,110) |
Amortization of stock-based compensation expense | 9,638 | 12,685 |
Loss from unconsolidated joint ventures | 10,176 | 1,483 |
Distributions of earnings from unconsolidated joint ventures | 1,459 | 1,980 |
Amortization of deferred financing costs | 4,637 | 5,626 |
Realized and unrealized losses (gains) on marketable securities | 560 | (2,474) |
Amortization of above and below-market leases, net | (2,744) | (6,003) |
Income from unconsolidated real estate funds | (141) | (65) |
Distributions of earnings from unconsolidated real estate funds | 353 | 1,137 |
Receipt of accrued interest on preferred equity investment | 2,339 | |
Other non-cash adjustments | 152 | (339) |
Changes in operating assets and liabilities: | ||
Accounts and other receivables | 493 | 381 |
Deferred charges | (8,107) | (8,466) |
Other assets | (4,367) | (6,294) |
Accounts payable and accrued expenses | (4,148) | (12,293) |
Other liabilities | (494) | 1,338 |
Net cash provided by operating activities | 103,111 | 106,813 |
Cash Flows from Investing Activities: | ||
Additions to real estate | (46,575) | (50,766) |
Repayment of amounts due from affiliates | 36,918 | 11,000 |
Sales of marketable securities | 19,049 | 10,407 |
Purchases of marketable securities | (9,248) | (8,867) |
Contributions of capital to unconsolidated real estate funds | (2,936) | (243) |
Distributions of capital from unconsolidated real estate funds | 1,260 | |
Due from affiliates | (181,000) | |
Investments in and contributions of capital to unconsolidated joint ventures | (52,525) | |
Redemption of preferred equity investment | 33,750 | |
Real estate acquisition deposits | (20,000) | |
Net cash used in investing activities | (2,792) | (256,984) |
Cash Flows from Financing Activities: | ||
Borrowings under revolving credit facility | 163,082 | 170,000 |
Proceeds from the sale of a 10.0% interest in 1633 Broadway | 111,984 | |
Repurchases of common shares | (100,000) | (6,488) |
Dividends paid to common stockholders | (44,989) | (46,804) |
Distributions paid to common unitholders | (4,608) | (5,047) |
Contributions from noncontrolling interests | 11,555 | 14,966 |
Distributions to noncontrolling interests | (6,357) | (34,919) |
Repayment of note payable issued in connection with the acquisition of noncontrolling interest in unconsolidated real estate fund | (8,771) | |
Proceeds from notes and mortgages payable | 3,073 | |
Net cash provided by financing activities | 124,653 | 91,141 |
Repurchase of shares related to stock compensation agreements and related tax withholdings | (316) | (307) |
Debt issuance costs | (260) | |
Net increase (decrease) in cash and cash equivalents and restricted cash | 224,972 | (59,030) |
Cash and cash equivalents and restricted cash at beginning of period | 331,487 | 365,409 |
Cash and cash equivalents and restricted cash at end of period | 556,459 | 306,379 |
Reconciliation of Cash and Cash Equivalents and Restricted Cash: | ||
Cash and cash equivalents at beginning of period | 306,215 | 339,653 |
Restricted cash at beginning of period | 25,272 | 25,756 |
Cash and cash equivalents and restricted cash at beginning of period | 331,487 | 365,409 |
Cash and cash equivalents at end of period | 522,502 | 283,485 |
Restricted cash at end of period | 33,957 | 22,894 |
Cash and cash equivalents and restricted cash at end of period | 556,459 | 306,379 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash payments for interest | 68,920 | 69,401 |
Cash payments for income taxes, net of refunds | 1,130 | 2,053 |
Non-Cash Transactions: | ||
Common shares issued upon redemption of common units | 85,311 | 23,990 |
Dividends and distributions declared but not yet paid | 24,292 | 25,953 |
Additions to real estate included in accounts payable and accrued expenses | 16,232 | 18,370 |
Write-off of fully amortized and/or depreciated assets | $ 8,612 | 3,387 |
Change in value of interest rate swaps | $ 24,371 |
Organization and Business
Organization and Business | 6 Months Ended |
Jun. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization And Business | 1. Organization and Business As used in these consolidated financial statements, unless otherwise indicated, all references to “we,” “us,” “our,” the “Company,” and “Paramount” refer to Paramount Group, Inc., a Maryland corporation, and its consolidated subsidiaries, including Paramount Group Operating Partnership LP (the “Operating Partnership”), a Delaware limited partnership. We are a fully-integrated real estate investment trust (“REIT”) focused on owning, operating, managing, acquiring and redeveloping high-quality, Class A office properties in select central business district submarkets of New York City and San Francisco. We conduct our business through, and substantially all of our interests in properties and investments are held by, the Operating Partnership. We are the sole general partner of, and owned approximately 91.4% of, the Operating Partnership as of June 30, 2020. In March 2020, the World Health Organization declared coronavirus 2019 (“COVID-19”) a global pandemic. The outbreak of COVID-19 has caused, and continues to cause, severe disruptions in the global economy, and has adversely impacted businesses and financial markets, including that of the United States. Specifically, New York and San Francisco, the markets in which we operate and where a majority of our assets are located, initially reacted by instituting quarantines, “pause” orders, “shelter-in-place” rules, restrictions on travel, and restriction on the types of business that could operate. These measures have had and continue to have a significant adverse impact on businesses. In June 2020, New York and San Francisco began their “re-opening” process by easing restrictions that were initially imposed and provided for a phased-in approach towards reopening that would enable businesses to operate. While some businesses in New York have begun to operate, albeit with certain restrictions, in mid-July San Francisco announced an indefinite “pause” to all re-openings, including a closure of all “non-essential” businesses. As of June 30, 2020, our portfolio consisted of 14 Class A properties aggregating 13.1 million square feet that was 95.6% leased, primarily to office tenants. The office tenants in our portfolio account for approximately 96.5% of our annualized rents and the remaining 3.5% is derived from non-office tenants (i.e. retail, parking garages and two theatres). During the three months ended June 30, 2020, we received several requests from tenants seeking “short-term” rent relief and have entered into agreements with select tenants (primarily retail) to defer a portion of their 2020 rental obligations. We continue to evaluate tenant requests on a case-by-case basis and are closely monitoring all rent collections. During the three months ended June 30, 2020, our portfolio-wide rent collections were 96.4%, including 97.8% from office tenants and 57.6% from all other tenants. We continue to monitor the impact of COVID-19 on our business, our tenants and the industry as a whole. During the three and six months ended June 30, 2020, we recorded $11,309,000 of non-cash write-offs, primarily for straight-line rent receivables, and $2,051,000 of reserves for uncollectible accounts receivable. The rapid development and fluidity of this situation precludes us at this time from making any predictions as to the ultimate impact COVID-19 may have on our future financial condition, results of operations and cash flows. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Basis Of Presentation And Significant Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | 2. Basis of Presentation and Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements are unaudited and have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in conjunction with the instructions to Form 10-Q of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnote disclosures required by GAAP for complete financial statements have been condensed or omitted. These consolidated financial statements include the accounts of Paramount and its consolidated subsidiaries, including the Operating Partnership. In the opinion of management, all significant adjustments (which include only normal recurring adjustments) and eliminations (which include intercompany balances and transactions) necessary to present fairly the financial position, results of operations and changes in cash flows have been made. The consolidated balance sheet as of December 31, 2019 was derived from audited financial statements as of that date, but does not include all information and disclosures required by GAAP. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019, as filed with the SEC. Significant Accounting Policies There are no material changes to our significant accounting policies as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2019. Use of Estimates We have made estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ materially from those estimates. The results of operations for the three and six months ended June 30, 2020, are not necessarily indicative of the operating results for the full year. Reclassifications Certain prior year balances have been reclassified to conform to current year presentation. See Note 4, Discontinued Operations. Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, an update to Accounting Standards Codification (“ASC”) Topic 326, Financial Instruments – Credit Losses Leases. In August 2018, the FASB issued ASU 2018-13, an update to ASC Topic 820, Fair Value Measurements In October 2018, the FASB issued ASU 2018-17, an update to ASC Topic 810, Consolidations. eporting entities to consider indirect interests held by related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety in determining whether a decision-making fee is a variable interest. ASU 2018-17 is effective for permitted. In December 2019, the FASB issued ASU 2019-12, an update to ASC Topic 740, Income Taxes. In March 2020, the FASB issued ASU 2020-04, which adds ASC Topic 848, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting. In April 2020, the FASB staff issued a question and answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of the COVID-19 global pandemic. Under existing lease guidance, the entity would have to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant, which would be accounted for under the lease modification framework, or if a lease concession was under the enforceable rights and obligations that existed in the original lease, which would be accounted for outside the lease modification framework. The Lease Modification Q&A provides entities with the option to elect to account for lease concessions as though the enforceable rights and obligations existed in the original lease. This election is only available when total cash flows resulting from the modified lease are substantially similar to the cash flows in the original lease. We have accounted for lease modifications executed as a result of COVID-19 under ASC Topic 842, Leases |
Dispositions
Dispositions | 6 Months Ended |
Jun. 30, 2020 | |
Assets Of Disposal Group Including Discontinued Operation [Abstract] | |
Dispositions | 3 . Dispositions 1633 Broadway On May 27, 2020, we completed the sale of a 10.0% interest in 1633 Broadway, a 2.5 million square foot trophy office building located in New York City. The transaction valued the property at $2.4 billion, or $960 per square foot and included the assumption of the existing $1.25 billion mortgage loan. Accordingly, we realized net proceeds of $111,984,000 from the sale after transaction costs. We continue to consolidate financial results of the property into our consolidated financial statements and reflect the 10.0% interest we do not own as noncontrolling interests. 1899 Pennsylvania Avenue On March 6, 2020, we entered into an agreement to sell 1899 Pennsylvania Avenue, a 191,000 square foot, unencumbered office building located in Washington, D.C., for $115,000,000. The transaction, which is subject to customary closing conditions, is expected to close in the fourth quarter of 2020. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2020 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations | 4. Discontinued Operations On March 6, 2020, we entered into an agreement to sell 1899 Pennsylvania Avenue, our sole remaining property in Washington, D.C. This disposition represents a strategic shift in our operations, where over the past two years, we have exited the Washington, D.C. office market by selling or entering into agreements to sell all of the assets in our Washington, D.C. portfolio. The disposition of this sole remaining asset meets the criteria of discontinued operations, under ASC Topic 205, Presentation of Financial Statements. The tables below set forth the details of the assets and liabilities and results of operations related to discontinued operations as of the dates thereof and for the periods set forth below. (Amounts in thousands) As of Balance Sheets: (1) June 30, 2020 December 31, 2019 Real estate, net $ 93,837 $ 94,251 Deferred rent receivable 4,008 4,206 Deferred charges, net 780 804 Intangible assets, net 5,290 5,575 Assets related to discontinued operations $ 103,915 $ 104,836 (Amounts in thousands) For the Three Months Ended For the Six Months Ended Income Statements: (2) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Revenues: Rental revenue $ 3,515 $ 7,096 $ 7,078 $ 14,371 Fee and other income 31 144 130 272 Total revenues 3,546 7,240 7,208 14,643 Expenses: Operating 1,399 2,836 2,850 5,756 Depreciation and amortization - 2,348 690 4,725 Total expenses 1,399 5,184 3,540 10,481 Income from discontinued operations, net $ 2,147 $ 2,056 $ 3,668 $ 4,162 (1) Represents assets of 1899 Pennsylvania Avenue. (2) Represents revenues, expenses and net income of 1899 Pennsylvania Avenue in the three and six months ended June 30, 2020 and 1899 Pennsylvania Avenue and Liberty Place in the three and six months ended June 30, 2019. The table below sets forth the details of the cash flows from discontinued operations for the periods set forth below. (Amounts in thousands) For the Six Months Ended Statements of Cash Flows: (1) June 30, 2020 June 30, 2019 Cash provided by operating activities $ 2,292 $ 9,059 Cash used in investing activities - (645 ) Additional Cash Flow information: Depreciation and amortization $ 690 $ 4,725 Additions to real estate - (645 ) (1) Represents cash flow information of 1899 Pennsylvania Avenue in the six months ended June 30, 2020 and 1899 Pennsylvania Avenue and Liberty Place in the six months ended June 30, 2019. |
Investments in Unconsolidated J
Investments in Unconsolidated Joint Ventures | 6 Months Ended |
Jun. 30, 2020 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investments in Unconsolidated Joint Ventures | 5 . Investments in Unconsolidated Joint Ventures The following tables summarize our investments in unconsolidated joint ventures as of the dates thereof and the income or loss from these investments for the periods set forth below. (Amounts in thousands) Paramount As of Our Share of Investments: Ownership June 30, 2020 December 31, 2019 712 Fifth Avenue (1) 50.0% $ - $ - Market Center 67.0% 197,250 219,593 55 Second Street (2) 44.1% 93,939 95,384 111 Sutter Street 49.0% 39,417 41,519 60 Wall Street (2) 5.0% 19,148 19,777 One Steuart Lane (2) 35.0% (3) 67,986 69,536 Oder-Center, Germany (2) 9.5% 3,443 3,371 Investments in unconsolidated joint ventures $ 421,183 $ 449,180 (Amounts in thousands) For the Three Months Ended June 30, For the Six Months Ended June 30, Our Share of Net (Loss) Income: 2020 2019 2020 2019 712 Fifth Avenue (1) $ 229 $ 917 $ 229 $ 917 Market Center (4) (3,070 ) - (5,924 ) - 55 Second Street (2)(5) (662 ) - (1,346 ) - 111 Sutter Street (6) (919 ) (1,249 ) (1,529 ) (2,121 ) 60 Wall Street (2) (9 ) (149 ) (91 ) (298 ) One Steuart Lane (2) (1,549 ) 8 (1,550 ) (7 ) Oder-Center, Germany (2) 25 17 35 26 Loss from unconsolidated joint ventures $ (5,955 ) $ (456 ) $ (10,176 ) $ (1,483 ) (1) (2) (3) (4) (5) (6) The following tables provide the combined summarized financial information of our unconsolidated joint ventures as of the dates and for the periods set forth below. (Amounts in thousands) As of Balance Sheets: June 30, 2020 December 31, 2019 Real estate, net $ 2,605,205 $ 2,581,738 Cash and cash equivalents and restricted cash 99,300 75,071 Intangible assets, net 140,312 172,041 Other assets 38,594 36,218 Total assets $ 2,883,411 $ 2,865,068 Notes and mortgages payable, net $ 1,706,229 $ 1,648,403 Intangible liabilities, net 31,522 38,377 Other liabilities 91,771 65,759 Total liabilities 1,829,522 1,752,539 Equity 1,053,889 1,112,529 Total liabilities and equity $ 2,883,411 $ 2,865,068 (Amounts in thousands) For the Three Months Ended June 30, For the Six Months Ended June 30, Income Statements: 2020 2019 2020 2019 Revenues: Rental revenue $ 59,136 $ 36,455 $ 121,583 $ 74,679 Fee and other income 777 393 1,524 491 Total revenues 59,913 36,848 123,107 75,170 Expenses: Operating 29,642 15,274 55,582 29,677 Depreciation and amortization 29,099 15,082 59,281 29,207 Total expenses 58,741 30,356 114,863 58,884 Other income (expense): Interest and other (loss) income, net (29 ) 201 48 299 Interest and debt expense (14,305 ) (12,323 ) (30,214 ) (23,850 ) Net loss before income taxes (13,162 ) (5,630 ) (21,922 ) (7,265 ) Income tax expense (5 ) - (44 ) (8 ) Net loss $ (13,167 ) $ (5,630 ) $ (21,966 ) $ (7,273 ) |
Investments in Unconsolidated R
Investments in Unconsolidated Real Estate Funds | 6 Months Ended |
Jun. 30, 2020 | |
Real Estate Fund [Abstract] | |
Investments in Unconsolidated Real Estate Funds | 6 . Investments in Unconsolidated Real Estate Funds We are the general partner and investment manager of Paramount Group Real Estate Fund VIII, LP (“Fund VIII”) and Paramount Group Real Estate Fund X, LP and its parallel fund, Paramount Group Real Estate Fund X-ECI, LP, (collectively “Fund X”), our Alternative Investment Funds, which invest in mortgage and mezzanine loans and preferred equity investments. Fund VIII’s investment period ended in April 2020. As of June 30, 2020, Fund VIII had invested $628,088,000 of the $775,200,000 of capital committed. Fund X has invested $78,791,000 of the $192,000,000 of capital committed as of June 30, 2020. Our ownership interest in Fund VIII and Fund X was approximately 1.3% and 7.8%, respectively. At June 30, 2020 and December 31, 2019, our investments in the Alternative Investment Funds aggregated $13,041,000 and $10,317,000, respectively, and we recognized income of $89,000 and $19,000 for the three months ended June 30, 2020 and 2019, respectively, and $141,000 and $65,000 for the six months ended June 30, 2020 and 2019, respectively. |
Intangible Assets and Liabiliti
Intangible Assets and Liabilities | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Liabilities | 7. Intangible Assets and Liabilities The following tables summarize our intangible assets (acquired above-market leases and acquired in-place leases) and intangible liabilities (acquired below-market leases) and the related amortization as of the dates thereof and for the periods set forth below. As of (Amounts in thousands) June 30, 2020 December 31, 2019 Intangible assets: Gross amount $ 438,402 $ 466,099 Accumulated amortization (259,158 ) (262,930 ) $ 179,244 $ 203,169 Intangible liabilities: Gross amount $ 163,977 $ 174,670 Accumulated amortization (98,208 ) (100,881 ) $ 65,769 $ 73,789 For the Three Months Ended For the Six Months Ended June 30, June 30, (Amounts in thousands) 2020 2019 2020 2019 Amortization of above and below-market leases, net (component of "rental revenue") $ 1,235 $ 2,747 $ 2,778 $ 6,043 Amortization of acquired in-place leases (component of "depreciation and amortization") 9,190 11,777 18,682 24,530 The following table sets forth annual amortization of acquired above and below-market leases, net and amortization of acquired in-place leases for each of the five succeeding years commencing from January 1, 2021. (Amounts in thousands) For the Year Ending December 31, Above and Below-Market Leases, Net In-Place Leases 2021 $ 3,647 $ 26,420 2022 1,177 21,923 2023 4,604 17,856 2024 5,540 14,387 2025 4,179 10,480 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | 8 . Debt The following table summarizes our consolidated outstanding debt. Interest Rate Maturity Fixed/ as of As of (Amounts in thousands) Date Variable Rate June 30, 2020 June 30, 2020 December 31, 2019 Notes and mortgages payable: 1633 Broadway (1) Dec-2029 Fixed 2.99 % $ 1,250,000 $ 1,250,000 One Market Plaza (1) Feb-2024 Fixed 4.03 % 975,000 975,000 1301 Avenue of the Americas Nov-2021 Fixed 3.05 % 500,000 500,000 Nov-2021 L + 180 bps 1.99 % 350,000 350,000 2.61 % 850,000 850,000 31 West 52nd Street May-2026 Fixed 3.80 % 500,000 500,000 300 Mission Street (1) Oct-2023 Fixed 3.65 % 237,716 234,643 Total notes and mortgages payable 3.32 % 3,812,716 3,809,643 Less: deferred financing costs (22,286 ) (25,792 ) Total notes and mortgages payable, net $ 3,790,430 $ 3,783,851 $1.0 Billion Revolving Credit Facility Jan-2022 L + 115 bps 1.34 % $ 200,000 $ 36,918 (1) |
Equity
Equity | 6 Months Ended |
Jun. 30, 2020 | |
Stockholders Equity Note [Abstract] | |
Equity | 9 . Equity Stock Repurchase Program On November 5, 2019, we received authorization from our Board of Directors to repurchase up to an additional $200,000,000 of our common stock, from time to time, in the open market or in privately negotiated transactions. In the three months ended March 31, 2020, we repurchased 10,856,865 common shares at a weighted average price of $9.21 per share, or $100,000,000 in the aggregate. We did not repurchase any shares in the three months ended June 30, 2020. As of July 1, 2020, we have $100,000,000 available for future repurchases under the existing program. The amount and timing of future repurchases, if any, will depend on a number of factors, including, the price and availability of our shares, trading volume and general market conditions. The stock repurchase program may be suspended or discontinued at any time. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2020 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | 10 . Accumulated Other Comprehensive Loss The following table sets forth changes in accumulated other comprehensive loss by component for the three and six months ended June 30, 2020 and 2019, including amounts attributable to noncontrolling interests in the Operating Partnership. For the Three Months Ended For the Six Months Ended June 30, June 30, (Amounts in thousands) 2020 2019 2020 2019 Amount of loss related to the cash flow hedges recognized in other comprehensive loss (1) $ - $ (13,608 ) $ - $ (20,846 ) Amounts reclassified from accumulated other comprehensive loss decreasing interest and debt expense (1) - (1,737 ) - (3,525 ) Amount of loss related to unconsolidated joint ventures recognized in other comprehensive loss (2) (2,104 ) (76 ) (16,672 ) (184 ) Amounts reclassified from accumulated other comprehensive loss increasing loss from unconsolidated joint ventures 408 - 315 - (1) (2) |
Noncontrolling Interests
Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2020 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | 11. Noncontrolling Interests Consolidated Joint Ventures Noncontrolling interests in consolidated joint ventures as of June 30, 2020 was $436,183,000, and represents the equity interests held by third parties in 1633 Broadway, One Market Plaza and 300 Mission Street. As of December 31, 2019, noncontrolling interests in consolidated joint ventures was $360,778,000, and represented equity interests held by third parties in One Market Plaza and 300 Mission Street. Consolidated Real Estate Fund Noncontrolling interests in our consolidated real estate fund consists of equity interests held by third parties in our Residential Development Fund. As of June 30, 2020 and December 31, 2019, the noncontrolling interest in our consolidated real estate fund aggregated $79,243,000 and $72,396,000, respectively. Operating Partnership Noncontrolling interests in the Operating Partnership represent common units of the Operating Partnership that are held by third parties, including management, and units issued to management under equity incentive plans. Common units of the Operating Partnership may be tendered for redemption to the Operating Partnership for cash. We, at our option, may assume that obligation and pay the holder either cash or common shares on a one-for-one basis. Since the number of common shares outstanding is equal to the number of common units owned by us, the redemption value of each common unit is equal to the market value of each common share and distributions paid to each common unitholder is equivalent to dividends paid to common stockholders. As of June 30, 2020 and December 31, 2019, noncontrolling interests in the Operating Partnership on our consolidated balance sheets had a carrying amount of $348,740,000 and $412,058,000, respectively, and a redemption value of $160,217,000 and $344,638,000, respectively. |
Variable Interest Entities ("VI
Variable Interest Entities ("VIEs") | 6 Months Ended |
Jun. 30, 2020 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities ("VIEs") | 12. Variable Interest Entities (“VIEs”) In the normal course of business, we are the general partner of various types of investment vehicles, which may be considered VIEs. We may, from time to time, own equity or debt securities through vehicles, each of which are considered variable interests. Our involvement in financing the operations of the VIEs is generally limited to our investments in the entity. We consolidate these entities when we are deemed to be the primary beneficiary. Consolidated VIEs We are the sole general partner of, and owned approximately 91.4% of, the Operating Partnership as of June 30, 2020. The Operating Partnership is considered a VIE and is consolidated in our consolidated financial statements. Since we conduct our business through and substantially all of our interests are held by the Operating Partnership, the assets and liabilities on our consolidated financial statements represent the assets and liabilities of the Operating Partnership. As of June 30, 2020 and December 31, 2019, the Operating Partnership held interests in consolidated VIEs owning properties and a real estate fund that were determined to be VIEs. The assets of these consolidated VIEs may only be used to settle the obligations of the entities and such obligations are secured only by the assets of the entities and are non-recourse to the Operating Partnership or us. The following table summarizes the assets and liabilities of consolidated VIEs of the Operating Partnership. As of (Amounts in thousands) June 30, 2020 December 31, 2019 Real estate, net $ 3,490,042 $ 1,685,391 Cash and cash equivalents and restricted cash 110,860 69,828 Investments in unconsolidated joint ventures 67,986 69,535 Accounts and other receivables 5,636 2,140 Deferred rent receivable 178,933 57,338 Deferred charges, net 56,572 24,030 Intangible assets, net 85,662 29,872 Other assets 24,016 21,132 Total VIE assets $ 4,019,707 $ 1,959,266 Notes and mortgages payable, net $ 2,449,538 $ 1,205,324 Accounts payable and accrued expenses 47,631 35,252 Intangible liabilities, net 36,297 19,841 Other liabilities 4,380 13,047 Total VIE liabilities $ 2,537,846 $ 1,273,464 Unconsolidated VIEs As of June 30, 2020, the Operating Partnership held variable interests in entities that own our unconsolidated real estate funds that were deemed to be VIEs. The following table summarizes our investments in these unconsolidated real estate funds and the maximum risk of loss from these investments. As of (Amounts in thousands) June 30, 2020 December 31, 2019 Investments $ 13,041 $ 10,317 Asset management fees and other receivables 652 37,563 (1) Maximum risk of loss $ 13,693 $ 47,880 (1) Related Parties. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 13. Fair Value Measurements Financial Assets Measured at Fair Value The following table summarizes the fair value of our financial assets that are measured at fair value on our consolidated balance sheets as of the dates set forth below, based on their levels in the fair value hierarchy. As of June 30, 2020 (Amounts in thousands) Total Level 1 Level 2 Level 3 Marketable securities (included in "other assets") $ 11,275 $ 11,275 $ - $ - Total assets $ 11,275 $ 11,275 $ - $ - As of December 31, 2019 (Amounts in thousands) Total Level 1 Level 2 Level 3 Marketable securities (included in "other assets") $ 21,639 $ 21,639 $ - $ - Total assets $ 21,639 $ 21,639 $ - $ - Financial Liabilities Not Measured at Fair Value Financial liabilities not measured at fair value on our consolidated balance sheets consist of notes and mortgages payable, and the revolving credit facility. The following table summarizes the carrying amounts and fair value of these financial instruments as of the dates set forth below. As of June 30, 2020 As of December 31, 2019 (Amounts in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Notes and mortgages payable $ 3,812,716 $ 3,868,933 $ 3,809,643 $ 3,848,266 Revolving credit facility 200,000 200,007 36,918 36,919 Total liabilities $ 4,012,716 $ 4,068,940 $ 3,846,561 $ 3,885,185 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Leases | 1 4 . Leases We lease office, retail and storage space to tenants, primarily under non-cancellable operating leases, which have terms generally ranging from five to fifteen years. Most of our leases provide tenants with extension options at either fixed or market rates and few of our leases provide tenants with options to early terminate, but such options generally impose an economic penalty on the tenant upon exercising. Our leases provide for (i) fixed payments of cash rents, which represents revenue each tenant pays in accordance with the terms of its respective lease and that is recognized on a straight-line basis over the non-cancellable term of the lease, and includes the effects of rent steps and rent abatements under the leases and (ii) variable payments of tenant reimbursements, which are recoveries of all or a portion of the operating expenses and real estate taxes of the property and is recognized in the same period as the expenses are incurred. The following table sets forth the details of our rental revenues. For the Three Months Ended June 30, For the Six Months Ended June 30, (Amounts in thousands) 2020 2019 2020 2019 Rental revenues: Fixed $ 153,868 (1) $ 161,146 $ 314,544 (1) $ 321,464 Variable 10,121 12,898 24,870 27,921 Total rental revenues $ 163,989 $ 174,044 $ 339,414 $ 349,385 (1) The following table is a schedule of future undiscounted cash flows under non-cancelable operating leases in effect as of June 30, 2020, for the six-month period from July 1, 2020 through December 31, 2020 and each of the five succeeding years commencing January 1, 2021. (Amounts in thousands) 2020 $ 303,858 2021 637,562 2022 623,463 2023 600,458 2024 573,047 2025 512,692 Thereafter 2,349,856 Total $ 5,600,936 |
Fee and Other Income
Fee and Other Income | 6 Months Ended |
Jun. 30, 2020 | |
Revenues [Abstract] | |
Fee and Other Income | 15. Fee and Other Income The following table sets forth the details of our fee and other income. For the Three Months Ended June 30, For the Six Months Ended June 30, (Amounts in thousands) 2020 2019 2020 2019 Fee income: Property management $ 2,239 $ 1,599 $ 4,689 $ 3,241 Asset management 3,571 2,290 7,092 4,608 Acquisition, disposition and leasing - - - 1,331 Other 399 324 758 1,032 Total fee income 6,209 4,213 12,539 10,212 Other income (1) 920 3,086 3,151 6,135 Total fee and other income $ 7,129 $ 7,299 $ 15,690 $ 16,347 (1) |
Interest and Other Income, net
Interest and Other Income, net | 6 Months Ended |
Jun. 30, 2020 | |
Interest And Other Income [Abstract] | |
Interest and Other Income, net | 1 6 . Interest and Other Income, net The following table sets forth the details of interest and other income, net. For the Three Months Ended June 30, For the Six Months Ended June 30, (Amounts in thousands) 2020 2019 2020 2019 Interest income, net $ 428 $ 1,741 $ 1,416 $ 3,118 Mark-to-market of investments in our deferred compensation plans (1) 1,824 842 (160 ) 2,911 Preferred equity investment income (2) - - - 454 Total interest and other income, net $ 2,252 $ 2,583 $ 1,256 $ 6,483 (1) The change resulting from the mark-to-market of the deferred compensation plan assets is entirely offset by the change in deferred compensation plan liabilities, which is included as a component of “general and administrative” expenses on our consolidated statements of income. (2) Represents 100% of the investment income from a preferred equity investment that was redeemed on March 1, 2019. |
Interest and Debt Expense
Interest and Debt Expense | 6 Months Ended |
Jun. 30, 2020 | |
Interest And Debt Expense [Abstract] | |
Interest and Debt Expense | 1 7 . Interest and Debt Expense The following table sets forth the details of interest and debt expense. For the Three Months Ended June 30, For the Six Months Ended June 30, (Amounts in thousands) 2020 2019 2020 2019 Interest expense $ 33,690 $ 34,388 $ 67,991 $ 68,511 Amortization of deferred financing costs 2,319 2,825 4,637 5,626 Total interest and debt expense $ 36,009 $ 37,213 $ 72,628 $ 74,137 |
Incentive Compensation
Incentive Compensation | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Incentive Compensation | 1 8 . Incentive Compensation Stock-Based Compensation We account for all stock-based compensation in accordance with ASC 718, Compensation – Stock Compensation 2016 Performance-Based Awards Program (“2016 Performance Program”) The three-year 2019 Performance-Based Awards Program (“2019 Performance Program”) On January 17, 2020, the Compensation Committee approved the 2019 Performance Program, a multi-year performance-based long-term incentive compensation program. Under the 2019 Performance Program, participants may earn awards in the form of LTIP units based on our TSR over a three-year four-year |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 1 9 . Earnings Per Share The following table summarizes our net (loss) income and the number of common shares used in the computation of basic and diluted income per common share, which includes the weighted average number of common shares outstanding and the effect of dilutive potential common shares, if any. For the Three Months Ended For the Six Months Ended June 30, June 30, (Amounts in thousands, except per share amounts) 2020 2019 2020 2019 Numerator: Continuing Operations: Net (loss) income from continuing operations attributable to common stockholders $ (8,234 ) $ 595 $ (6,266 ) $ 2,404 Earnings allocated to unvested participating securities (14 ) (4 ) (26 ) (13 ) Numerator for (loss) income from continuing operations per common share - basic and diluted (8,248 ) 591 (6,292 ) 2,391 Discontinued Operations: Income from discontinued operations attributable to common stockholders 1,964 1,860 3,344 3,760 Earnings allocated to unvested participating securities (4 ) (14 ) (11 ) (24 ) Numerator for income from discontinued operations per common share - basic and diluted 1,960 1,846 3,333 3,736 Numerator for (loss) income per common share - basic and diluted $ (6,288 ) $ 2,437 $ (2,959 ) $ 6,127 Denominator: Denominator for basic income per common share - weighted average shares 221,573 234,330 224,671 233,877 Effect of dilutive stock-based compensation plans (1) - 26 - 31 Denominator for diluted income per common share - weighted average shares 221,573 234,356 224,671 233,908 (Loss) income per Common Share - Basic and Diluted: Continuing operations, net $ (0.04 ) $ 0.00 $ (0.03 ) $ 0.01 Discontinued operations, net 0.01 0.01 0.02 0.02 (Loss) income per common share - basic and diluted $ (0.03 ) $ 0.01 $ (0.01 ) $ 0.03 (1) |
Related Parties
Related Parties | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Parties | 20 . Related Parties Management Agreements We provide property management, leasing and other related services to certain properties owned by members of the Otto Family. We recognized fee income of $259,000 and $211,000 for the three months ended June 30, 2020 and 2019, respectively, and $707,000 and $420,000 for the six months ended June 30, 2020 and 2019, respectively, no amounts were owed to us under these agreements. We also provide property management, asset management, leasing and other related services to our unconsolidated joint ventures and real estate funds. We recognized fee income of $5,396,000 and $3,511,000 for the three months ended June 30, 2020 and 2019, respectively, and $10,709,000 and $8,058,000 for the six months ended June 30, 2020 and 2019, respectively, in connection with these agreements. As of June 30, 2020 and December 31, 2019, amounts owed to us under these agreements aggregated $3,418,000 and $2,734,000, respectively, which are included as a component of “accounts and other receivables” on our consolidated balance sheets. Hamburg Trust Consulting GMBH (“HTC”) We have an agreement with HTC, a licensed broker in Germany, to supervise selling efforts for our private equity real estate funds (or investments in feeder vehicles for these funds) to investors in Germany, including distribution of securitized notes of feeder vehicles for Fund VIII and Fund X. Pursuant to this agreement, we have agreed to pay HTC for the costs incurred to sell investments in these feeder vehicles, which primarily consist of commissions paid to third party agents, and other incremental costs incurred by HTC as a result of the engagement, plus, in each case, a mark-up of 10%. HTC is 100% owned by Albert Behler, our Chairman, Chief Executive Officer and President. We incurred expenses of $126,000 and $62,000 for the three months ended June 30, 2020 and 2019, respectively, and $265,000 and $686,000 for the six months ended June 30, 2020 and 2019, respectively, Mannheim Trust A subsidiary of Mannheim Trust leases office space at 712 Fifth Avenue , our 50.0% owned unconsolidated joint venture, pursuant to a lease agreement which expires in April 2023. Dr. Martin Bussmann (a member of our Board of Directors) is also a trustee and a director of Mannheim Trust. We recognized $90,000 in each of the three months ended June 30, 2020 and 2019 and $181,000 in each of the six months ended June 30, 2020 and 2019 for our share of rental income pursuant to this lease. Due from Affiliates At December 31, 2019, we had a $36,918,000 note receivable from Fund X that bore interest at LIBOR plus 220 basis points and was included as “due from affiliates” on our consolidated balance sheet. On March 27, 2020, the $36,918,000 note receivable was repaid, together with $349,000 of accrued interest. Other We have entered into an agreement with Kramer Design Services (“Kramer Design”) to, among other things, develop company-wide standard branding guidelines. Kramer Design is owned by the spouse of Albert Behler, our Chairman, Chief Executive Officer and President. During the three and six months ended June 30, 2020, we recognized $140,000 of expenses in connection with this agreement. As of June 30, 2020, we owed Kramer Design $47,000, which is included as a component of “accounts payable and accrued expenses” on our consolidated balance sheet Kramer Design has also entered into agreements with 712 Fifth Avenue, our 50.0% owned unconsolidated joint venture, to, among other things, create and design marketing materials with respect to the vacant retail space at 712 Fifth Avenue. We recognized expenses of $14,000 and $103,000 for the three months ended June 30, 2020 and 2019, respectively, and for the six months ended June 30, 2020 and 2019, respectively |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 2 1 . Commitments and Contingencies Insurance We carry commercial general liability coverage on our properties, with limits of liability customary within the industry. Similarly, we are insured against the risk of direct and indirect physical damage to our properties including coverage for the perils such as floods, earthquakes and windstorms. Our policies also cover the loss of rental income during an estimated reconstruction period. Our policies reflect limits and deductibles customary in the industry and specific to the buildings and portfolio. We also obtain title insurance policies when acquiring new properties. We currently have coverage for losses incurred in connection with both domestic and foreign terrorist-related activities. While we do carry commercial general liability insurance, property insurance and terrorism insurance with respect to our properties, these policies include limits and terms we consider commercially reasonable. In addition, there are certain losses (including, but not limited to, losses arising from known environmental conditions or acts of war) that are not insured, in full or in part, because they are either uninsurable or the cost of insurance makes it, in our belief, economically impractical to maintain such coverage. Should an uninsured loss arise against us, we would be required to use our own funds to resolve the issue, including litigation costs. We believe the policy specifications and insured limits are adequate given the relative risk of loss, the cost of the coverage and industry practice and, in consultation with our insurance advisors, we believe the properties in our portfolio are adequately insured. Other Commitments and Contingencies We are a party to various claims and routine litigation arising in the ordinary course of business. Some of these claims or others to which we may be subject from time to time, including claims arising specifically from the formation transactions, in connection with our initial public offering, may result in defense costs, settlements, fines or judgments against us, some of which are not, or cannot be, covered by insurance. Payment of any such costs, settlements, fines or judgments that are not insured could have an adverse impact on our financial position and results of operations. Should any litigation arise in connection with the formation transactions, we would contest it vigorously. In addition, certain litigation or the resolution of certain litigation may affect the availability or cost of some of our insurance coverage, which could adversely impact our results of operations and cash flow, expose us to increased risks that would be uninsured, and/or adversely impact our ability to attract officers and directors. The terms of our mortgage debt and certain side letters in place include certain restrictions and covenants which may limit, among other things, certain investments, the incurrence of additional indebtedness and liens and the disposition or other transfer of assets and interests in the borrower and other credit parties, and require compliance with certain debt yield, debt service coverage and loan to value ratios. In addition, our revolving credit facility contains representations, warranties, covenants, other agreements and events of default customary for agreements of this type with comparable companies. As of June 30, 2020, we believe we are in compliance with all of our covenants. 718 Fifth Avenue - Put Right Prior to the formation transactions, an affiliate of our predecessor owned a 25.0% interest in 718 Fifth Avenue, a five-story building containing 19,050 square feet of prime retail space that is located on the southwest corner of 56th Street and Fifth Avenue in New York, (based on its 50.0% interest in a joint venture that held a 50.0% tenancy-in-common interest in the property). Prior to the completion of the formation transactions, this interest was sold to its partner in the 718 Fifth Avenue joint venture, who is also our joint venture partner in 712 Fifth Avenue, New York, New York. In connection with this sale, we granted our joint venture partner a put right, pursuant to which the 712 Fifth Avenue joint venture would be required to purchase the entire direct or indirect interests then held by our joint venture partner or its affiliates in 718 Fifth Avenue at a purchase price equal to the fair market value of such interests. The put right may be exercised at any time with the actual purchase occurring no earlier than 12 months after written notice is provided. If the put right is exercised and the 712 Fifth Avenue joint venture acquires the 50.0% tenancy-in-common interest in the property by our joint venture partner, we will own a 25.0% interest in 718 Fifth Avenue based on current ownership interests. Transfer Tax Assessments During 2017, the New York City Department of Finance issued Notices of Determination (“Notices”) assessing additional transfer taxes (including interest and penalties) in connection with the transfer of interests in certain properties during our 2014 initial public offering. We believe, after consultation with legal counsel, that the likelihood of a loss is reasonably possible, and while it is not possible to predict the outcome of these Notices, we estimate the range of loss could be between $0 and $45,500,000. Since no amount in this range is a better estimate than any other amount within the range, we have not accrued any liability arising from potential losses relating to these Notices in our consolidated financial statements. |
Segments
Segments | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segments | 2 2 . Segments Our reportable segments are separated based on the regions in which we conduct our business. Prior to January 1, 2020, our reportable segments consisted of New York, San Francisco and Washington, D.C. Upon entering into an agreement to sell 1899 Pennsylvania Avenue, our sole remaining property in the Washington, D.C. segment, we redefined our reportable segments into the two remaining regions in which we conduct our business: New York and San Francisco effective January 1, 2020. Our determination of segments is aligned with our method of internal reporting and the way our Chief Executive Officer, who is also our Chief Operating Decision Maker, makes key operating decisions, evaluates financial results and manages our business. In connection therewith, we have reclassified the Washington, D.C. segment financial data into Other segment and reclassified prior period segment financial data to conform to current period presentation. The following tables provide Net Operating Income (“NOI”) for each reportable segment for the periods set forth below. For the Three Months Ended June 30, 2020 (Amounts in thousands) Total New York San Francisco Other Property-related revenues $ 168,455 $ 110,679 $ 54,827 $ 2,949 Property-related operating expenses (65,712 ) (47,213 ) (16,054 ) (2,445 ) NOI from unconsolidated joint ventures 10,376 2,680 9,165 (1,469 ) NOI (1) $ 113,119 $ 66,146 $ 47,938 $ (965 ) For the Three Months Ended June 30, 2019 (Amounts in thousands) Total New York San Francisco Other Property-related revenues $ 184,370 $ 118,741 $ 58,431 $ 7,198 Property-related operating expenses (67,572 ) (46,504 ) (17,479 ) (3,589 ) NOI from unconsolidated joint ventures 4,185 2,886 1,213 86 NOI (1) $ 120,983 $ 75,123 $ 42,165 $ 3,695 For the Six Months Ended June 30, 2020 (Amounts in thousands) Total New York San Francisco Other Property-related revenues $ 349,773 $ 232,256 $ 111,494 $ 6,023 Property-related operating expenses (134,177 ) (96,242 ) (32,973 ) (4,962 ) NOI from unconsolidated joint ventures 23,768 5,624 19,547 (1,403 ) NOI (1) $ 239,364 $ 141,638 $ 98,068 $ (342 ) For the Six Months Ended June 30, 2019 (Amounts in thousands) Total New York San Francisco Other Property-related revenues $ 370,163 $ 239,837 $ 115,615 $ 14,711 Property-related operating expenses (135,953 ) (94,607 ) (33,825 ) (7,521 ) NOI from unconsolidated joint ventures 9,596 7,543 1,913 140 NOI (1) $ 243,806 $ 152,773 $ 83,703 $ 7,330 (1) NOI is used to measure the operating performance of our properties. NOI consists of rental revenue (which includes property rentals, tenant reimbursements and lease termination income) and certain other property-related revenue less operating expenses (which includes property-related expenses such as cleaning, security, repairs and maintenance, utilities, property administration and real estate taxes). We use NOI internally as a performance measure and believe it provides useful information to investors regarding our financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level. Other real estate companies may use different methodologies for calculating NOI and, accordingly, our presentation of NOI may not be comparable to other real estate companies. The following table provides a reconciliation of NOI to net income attributable to common stockholders for the periods set forth below. For the Three Months Ended For the Six Months Ended June 30, June 30, (Amounts in thousands) 2020 2019 2020 2019 NOI $ 113,119 $ 120,983 $ 239,364 $ 243,806 Add (subtract) adjustments to arrive to net income: Fee income 6,209 4,213 12,539 10,212 Depreciation and amortization expense (58,716 ) (60,277 ) (117,143 ) (120,989 ) General and administrative expenses (17,901 ) (17,695 ) (30,150 ) (35,138 ) NOI from unconsolidated joint ventures (10,376 ) (4,185 ) (23,768 ) (9,596 ) Loss from unconsolidated joint ventures (5,955 ) (456 ) (10,176 ) (1,483 ) Interest and other income, net 2,252 2,583 1,256 6,483 Interest and debt expense (36,009 ) (37,213 ) (72,628 ) (74,137 ) NOI from discontinued operations (2,147 ) (4,404 ) (4,358 ) (8,887 ) Other, net (169 ) (163 ) (320 ) (853 ) (Loss) income from continuing operations, before income taxes (9,693 ) 3,386 (5,384 ) 9,418 Income tax expense (138 ) (268 ) (742 ) (1,406 ) (Loss) income from continuing operations, net (9,831 ) 3,118 (6,126 ) 8,012 Income from discontinued operations, net 2,147 2,056 3,668 4,162 Net (loss) income (7,684 ) 5,174 (2,458 ) 12,174 Less: net (income) loss attributable to noncontrolling interests in: Consolidated joint ventures (405 ) (2,408 ) (1,919 ) (5,202 ) Consolidated real estate fund 1,235 (53 ) 1,212 (147 ) Operating Partnership 584 (258 ) 243 (661 ) Net (loss) income attributable to common stockholders $ (6,270 ) $ 2,455 $ (2,922 ) $ 6,164 The following table provides the total assets for each of our reportable segments as of the dates set forth below. (Amounts in thousands) Total Assets as of: Total New York San Francisco Other June 30, 2020 $ 8,833,182 $ 5,438,820 $ 2,706,650 $ 687,712 December 31, 2019 8,734,135 5,439,929 2,708,463 585,743 |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements are unaudited and have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in conjunction with the instructions to Form 10-Q of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnote disclosures required by GAAP for complete financial statements have been condensed or omitted. These consolidated financial statements include the accounts of Paramount and its consolidated subsidiaries, including the Operating Partnership. In the opinion of management, all significant adjustments (which include only normal recurring adjustments) and eliminations (which include intercompany balances and transactions) necessary to present fairly the financial position, results of operations and changes in cash flows have been made. The consolidated balance sheet as of December 31, 2019 was derived from audited financial statements as of that date, but does not include all information and disclosures required by GAAP. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019, as filed with the SEC. |
Significant Accounting Policies | Significant Accounting Policies There are no material changes to our significant accounting policies as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2019. |
Use of Estimates | Use of Estimates We have made estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ materially from those estimates. The results of operations for the three and six months ended June 30, 2020, are not necessarily indicative of the operating results for the full year. |
Reclassifications | Reclassifications Certain prior year balances have been reclassified to conform to current year presentation. See Note 4, Discontinued Operations. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, an update to Accounting Standards Codification (“ASC”) Topic 326, Financial Instruments – Credit Losses Leases. In August 2018, the FASB issued ASU 2018-13, an update to ASC Topic 820, Fair Value Measurements In October 2018, the FASB issued ASU 2018-17, an update to ASC Topic 810, Consolidations. eporting entities to consider indirect interests held by related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety in determining whether a decision-making fee is a variable interest. ASU 2018-17 is effective for permitted. In December 2019, the FASB issued ASU 2019-12, an update to ASC Topic 740, Income Taxes. In March 2020, the FASB issued ASU 2020-04, which adds ASC Topic 848, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting. In April 2020, the FASB staff issued a question and answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of the COVID-19 global pandemic. Under existing lease guidance, the entity would have to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant, which would be accounted for under the lease modification framework, or if a lease concession was under the enforceable rights and obligations that existed in the original lease, which would be accounted for outside the lease modification framework. The Lease Modification Q&A provides entities with the option to elect to account for lease concessions as though the enforceable rights and obligations existed in the original lease. This election is only available when total cash flows resulting from the modified lease are substantially similar to the cash flows in the original lease. We have accounted for lease modifications executed as a result of COVID-19 under ASC Topic 842, Leases |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Schedule of Assets and Liabilities, Results of Operations and Cash Flow from Discontinued Operations | The tables below set forth the details of the assets and liabilities and results of operations related to discontinued operations as of the dates thereof and for the periods set forth below. (Amounts in thousands) As of Balance Sheets: (1) June 30, 2020 December 31, 2019 Real estate, net $ 93,837 $ 94,251 Deferred rent receivable 4,008 4,206 Deferred charges, net 780 804 Intangible assets, net 5,290 5,575 Assets related to discontinued operations $ 103,915 $ 104,836 (Amounts in thousands) For the Three Months Ended For the Six Months Ended Income Statements: (2) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Revenues: Rental revenue $ 3,515 $ 7,096 $ 7,078 $ 14,371 Fee and other income 31 144 130 272 Total revenues 3,546 7,240 7,208 14,643 Expenses: Operating 1,399 2,836 2,850 5,756 Depreciation and amortization - 2,348 690 4,725 Total expenses 1,399 5,184 3,540 10,481 Income from discontinued operations, net $ 2,147 $ 2,056 $ 3,668 $ 4,162 (1) Represents assets of 1899 Pennsylvania Avenue. (2) Represents revenues, expenses and net income of 1899 Pennsylvania Avenue in the three and six months ended June 30, 2020 and 1899 Pennsylvania Avenue and Liberty Place in the three and six months ended June 30, 2019. The table below sets forth the details of the cash flows from discontinued operations for the periods set forth below. (Amounts in thousands) For the Six Months Ended Statements of Cash Flows: (1) June 30, 2020 June 30, 2019 Cash provided by operating activities $ 2,292 $ 9,059 Cash used in investing activities - (645 ) Additional Cash Flow information: Depreciation and amortization $ 690 $ 4,725 Additions to real estate - (645 ) (1) Represents cash flow information of 1899 Pennsylvania Avenue in the six months ended June 30, 2020 and 1899 Pennsylvania Avenue and Liberty Place in the six months ended June 30, 2019. |
Investments in Unconsolidated_2
Investments in Unconsolidated Joint Ventures (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Schedule Of Equity Method Investments [Line Items] | |
Summary of Investments and Income from Investments In Unconsolidated Joint Ventures | The following tables summarize our investments in unconsolidated joint ventures as of the dates thereof and the income or loss from these investments for the periods set forth below. (Amounts in thousands) Paramount As of Our Share of Investments: Ownership June 30, 2020 December 31, 2019 712 Fifth Avenue (1) 50.0% $ - $ - Market Center 67.0% 197,250 219,593 55 Second Street (2) 44.1% 93,939 95,384 111 Sutter Street 49.0% 39,417 41,519 60 Wall Street (2) 5.0% 19,148 19,777 One Steuart Lane (2) 35.0% (3) 67,986 69,536 Oder-Center, Germany (2) 9.5% 3,443 3,371 Investments in unconsolidated joint ventures $ 421,183 $ 449,180 (Amounts in thousands) For the Three Months Ended June 30, For the Six Months Ended June 30, Our Share of Net (Loss) Income: 2020 2019 2020 2019 712 Fifth Avenue (1) $ 229 $ 917 $ 229 $ 917 Market Center (4) (3,070 ) - (5,924 ) - 55 Second Street (2)(5) (662 ) - (1,346 ) - 111 Sutter Street (6) (919 ) (1,249 ) (1,529 ) (2,121 ) 60 Wall Street (2) (9 ) (149 ) (91 ) (298 ) One Steuart Lane (2) (1,549 ) 8 (1,550 ) (7 ) Oder-Center, Germany (2) 25 17 35 26 Loss from unconsolidated joint ventures $ (5,955 ) $ (456 ) $ (10,176 ) $ (1,483 ) (1) (2) (3) (4) (5) (6) |
Unconsolidated Joint Ventures [Member] | |
Schedule Of Equity Method Investments [Line Items] | |
Summary of Financial Information of Unconsolidated Joint Ventures | The following tables provide the combined summarized financial information of our unconsolidated joint ventures as of the dates and for the periods set forth below. (Amounts in thousands) As of Balance Sheets: June 30, 2020 December 31, 2019 Real estate, net $ 2,605,205 $ 2,581,738 Cash and cash equivalents and restricted cash 99,300 75,071 Intangible assets, net 140,312 172,041 Other assets 38,594 36,218 Total assets $ 2,883,411 $ 2,865,068 Notes and mortgages payable, net $ 1,706,229 $ 1,648,403 Intangible liabilities, net 31,522 38,377 Other liabilities 91,771 65,759 Total liabilities 1,829,522 1,752,539 Equity 1,053,889 1,112,529 Total liabilities and equity $ 2,883,411 $ 2,865,068 (Amounts in thousands) For the Three Months Ended June 30, For the Six Months Ended June 30, Income Statements: 2020 2019 2020 2019 Revenues: Rental revenue $ 59,136 $ 36,455 $ 121,583 $ 74,679 Fee and other income 777 393 1,524 491 Total revenues 59,913 36,848 123,107 75,170 Expenses: Operating 29,642 15,274 55,582 29,677 Depreciation and amortization 29,099 15,082 59,281 29,207 Total expenses 58,741 30,356 114,863 58,884 Other income (expense): Interest and other (loss) income, net (29 ) 201 48 299 Interest and debt expense (14,305 ) (12,323 ) (30,214 ) (23,850 ) Net loss before income taxes (13,162 ) (5,630 ) (21,922 ) (7,265 ) Income tax expense (5 ) - (44 ) (8 ) Net loss $ (13,167 ) $ (5,630 ) $ (21,966 ) $ (7,273 ) |
Intangible Assets and Liabili_2
Intangible Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets and Liabilities | The following tables summarize our intangible assets (acquired above-market leases and acquired in-place leases) and intangible liabilities (acquired below-market leases) and the related amortization as of the dates thereof and for the periods set forth below. As of (Amounts in thousands) June 30, 2020 December 31, 2019 Intangible assets: Gross amount $ 438,402 $ 466,099 Accumulated amortization (259,158 ) (262,930 ) $ 179,244 $ 203,169 Intangible liabilities: Gross amount $ 163,977 $ 174,670 Accumulated amortization (98,208 ) (100,881 ) $ 65,769 $ 73,789 For the Three Months Ended For the Six Months Ended June 30, June 30, (Amounts in thousands) 2020 2019 2020 2019 Amortization of above and below-market leases, net (component of "rental revenue") $ 1,235 $ 2,747 $ 2,778 $ 6,043 Amortization of acquired in-place leases (component of "depreciation and amortization") 9,190 11,777 18,682 24,530 |
Schedule of Estimated Annual Amortization of Acquired Below-Market Leases, Net of Acquired Above-Market Leases and In Place Leases | The following table sets forth annual amortization of acquired above and below-market leases, net and amortization of acquired in-place leases for each of the five succeeding years commencing from January 1, 2021. (Amounts in thousands) For the Year Ending December 31, Above and Below-Market Leases, Net In-Place Leases 2021 $ 3,647 $ 26,420 2022 1,177 21,923 2023 4,604 17,856 2024 5,540 14,387 2025 4,179 10,480 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Outstanding Debt | The following table summarizes our consolidated outstanding debt. Interest Rate Maturity Fixed/ as of As of (Amounts in thousands) Date Variable Rate June 30, 2020 June 30, 2020 December 31, 2019 Notes and mortgages payable: 1633 Broadway (1) Dec-2029 Fixed 2.99 % $ 1,250,000 $ 1,250,000 One Market Plaza (1) Feb-2024 Fixed 4.03 % 975,000 975,000 1301 Avenue of the Americas Nov-2021 Fixed 3.05 % 500,000 500,000 Nov-2021 L + 180 bps 1.99 % 350,000 350,000 2.61 % 850,000 850,000 31 West 52nd Street May-2026 Fixed 3.80 % 500,000 500,000 300 Mission Street (1) Oct-2023 Fixed 3.65 % 237,716 234,643 Total notes and mortgages payable 3.32 % 3,812,716 3,809,643 Less: deferred financing costs (22,286 ) (25,792 ) Total notes and mortgages payable, net $ 3,790,430 $ 3,783,851 $1.0 Billion Revolving Credit Facility Jan-2022 L + 115 bps 1.34 % $ 200,000 $ 36,918 (1) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive Loss by Component | The following table sets forth changes in accumulated other comprehensive loss by component for the three and six months ended June 30, 2020 and 2019, including amounts attributable to noncontrolling interests in the Operating Partnership. For the Three Months Ended For the Six Months Ended June 30, June 30, (Amounts in thousands) 2020 2019 2020 2019 Amount of loss related to the cash flow hedges recognized in other comprehensive loss (1) $ - $ (13,608 ) $ - $ (20,846 ) Amounts reclassified from accumulated other comprehensive loss decreasing interest and debt expense (1) - (1,737 ) - (3,525 ) Amount of loss related to unconsolidated joint ventures recognized in other comprehensive loss (2) (2,104 ) (76 ) (16,672 ) (184 ) Amounts reclassified from accumulated other comprehensive loss increasing loss from unconsolidated joint ventures 408 - 315 - (1) (2) |
Variable Interest Entities ("_2
Variable Interest Entities ("VIEs") (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Consolidated VIEs [Member] | |
Summary of Assets and Liabilities of Consolidated Variable Interest Entities | The following table summarizes the assets and liabilities of consolidated VIEs of the Operating Partnership As of (Amounts in thousands) June 30, 2020 December 31, 2019 Real estate, net $ 3,490,042 $ 1,685,391 Cash and cash equivalents and restricted cash 110,860 69,828 Investments in unconsolidated joint ventures 67,986 69,535 Accounts and other receivables 5,636 2,140 Deferred rent receivable 178,933 57,338 Deferred charges, net 56,572 24,030 Intangible assets, net 85,662 29,872 Other assets 24,016 21,132 Total VIE assets $ 4,019,707 $ 1,959,266 Notes and mortgages payable, net $ 2,449,538 $ 1,205,324 Accounts payable and accrued expenses 47,631 35,252 Intangible liabilities, net 36,297 19,841 Other liabilities 4,380 13,047 Total VIE liabilities $ 2,537,846 $ 1,273,464 |
Unconsolidated VIEs [Member] | |
Summary of Investments in Unconsolidated Real Estate Funds and Maximum Risk of Loss from Investments | The following table summarizes our investments in these unconsolidated real estate funds and the maximum risk of loss from these investments. As of (Amounts in thousands) June 30, 2020 December 31, 2019 Investments $ 13,041 $ 10,317 Asset management fees and other receivables 652 37,563 (1) Maximum risk of loss $ 13,693 $ 47,880 (1) Related Parties. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Financial Assets Measured at Fair Value | The following table summarizes the fair value of our financial assets that are measured at fair value on our consolidated balance sheets as of the dates set forth below, based on their levels in the fair value hierarchy. As of June 30, 2020 (Amounts in thousands) Total Level 1 Level 2 Level 3 Marketable securities (included in "other assets") $ 11,275 $ 11,275 $ - $ - Total assets $ 11,275 $ 11,275 $ - $ - As of December 31, 2019 (Amounts in thousands) Total Level 1 Level 2 Level 3 Marketable securities (included in "other assets") $ 21,639 $ 21,639 $ - $ - Total assets $ 21,639 $ 21,639 $ - $ - |
Summary of Carrying Amounts and Fair Value of Financial Instruments | The following table summarizes the carrying amounts and fair value of these financial instruments as of the dates set forth below. As of June 30, 2020 As of December 31, 2019 (Amounts in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Notes and mortgages payable $ 3,812,716 $ 3,868,933 $ 3,809,643 $ 3,848,266 Revolving credit facility 200,000 200,007 36,918 36,919 Total liabilities $ 4,012,716 $ 4,068,940 $ 3,846,561 $ 3,885,185 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Schedule of Rental Revenues | The following table sets forth the details of our rental revenues. For the Three Months Ended June 30, For the Six Months Ended June 30, (Amounts in thousands) 2020 2019 2020 2019 Rental revenues: Fixed $ 153,868 (1) $ 161,146 $ 314,544 (1) $ 321,464 Variable 10,121 12,898 24,870 27,921 Total rental revenues $ 163,989 $ 174,044 $ 339,414 $ 349,385 |
Schedule of Future Undiscounted Cash Flows Under Non-Cancelable Operating Leases | The following table is a schedule of future undiscounted cash flows under non-cancelable operating leases in effect as of June 30, 2020, for the six-month period from July 1, 2020 through December 31, 2020 and each of the five succeeding years commencing January 1, 2021. (Amounts in thousands) 2020 $ 303,858 2021 637,562 2022 623,463 2023 600,458 2024 573,047 2025 512,692 Thereafter 2,349,856 Total $ 5,600,936 |
Fee and Other Income (Tables)
Fee and Other Income (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Disaggregation Of Revenue [Abstract] | |
Summary of Fee and Other Income | The following table sets forth the details of our fee and other income. For the Three Months Ended June 30, For the Six Months Ended June 30, (Amounts in thousands) 2020 2019 2020 2019 Fee income: Property management $ 2,239 $ 1,599 $ 4,689 $ 3,241 Asset management 3,571 2,290 7,092 4,608 Acquisition, disposition and leasing - - - 1,331 Other 399 324 758 1,032 Total fee income 6,209 4,213 12,539 10,212 Other income (1) 920 3,086 3,151 6,135 Total fee and other income $ 7,129 $ 7,299 $ 15,690 $ 16,347 (1) |
Interest and Other Income, net
Interest and Other Income, net (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Interest And Other Income [Abstract] | |
Schedule of Interest and Other Income, net | The following table sets forth the details of interest and other income, net. For the Three Months Ended June 30, For the Six Months Ended June 30, (Amounts in thousands) 2020 2019 2020 2019 Interest income, net $ 428 $ 1,741 $ 1,416 $ 3,118 Mark-to-market of investments in our deferred compensation plans (1) 1,824 842 (160 ) 2,911 Preferred equity investment income (2) - - - 454 Total interest and other income, net $ 2,252 $ 2,583 $ 1,256 $ 6,483 (1) The change resulting from the mark-to-market of the deferred compensation plan assets is entirely offset by the change in deferred compensation plan liabilities, which is included as a component of “general and administrative” expenses on our consolidated statements of income. (2) Represents 100% of the investment income from a preferred equity investment that was redeemed on March 1, 2019. |
Interest and Debt Expense (Tabl
Interest and Debt Expense (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Interest And Debt Expense [Abstract] | |
Details of Interest and Debt Expense | The following table sets forth the details of interest and debt expense. For the Three Months Ended June 30, For the Six Months Ended June 30, (Amounts in thousands) 2020 2019 2020 2019 Interest expense $ 33,690 $ 34,388 $ 67,991 $ 68,511 Amortization of deferred financing costs 2,319 2,825 4,637 5,626 Total interest and debt expense $ 36,009 $ 37,213 $ 72,628 $ 74,137 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Summary of Computation of Earnings Per Share | The following table summarizes our net (loss) income and the number of common shares used in the computation of basic and diluted income per common share, which includes the weighted average number of common shares outstanding and the effect of dilutive potential common shares, if any. For the Three Months Ended For the Six Months Ended June 30, June 30, (Amounts in thousands, except per share amounts) 2020 2019 2020 2019 Numerator: Continuing Operations: Net (loss) income from continuing operations attributable to common stockholders $ (8,234 ) $ 595 $ (6,266 ) $ 2,404 Earnings allocated to unvested participating securities (14 ) (4 ) (26 ) (13 ) Numerator for (loss) income from continuing operations per common share - basic and diluted (8,248 ) 591 (6,292 ) 2,391 Discontinued Operations: Income from discontinued operations attributable to common stockholders 1,964 1,860 3,344 3,760 Earnings allocated to unvested participating securities (4 ) (14 ) (11 ) (24 ) Numerator for income from discontinued operations per common share - basic and diluted 1,960 1,846 3,333 3,736 Numerator for (loss) income per common share - basic and diluted $ (6,288 ) $ 2,437 $ (2,959 ) $ 6,127 Denominator: Denominator for basic income per common share - weighted average shares 221,573 234,330 224,671 233,877 Effect of dilutive stock-based compensation plans (1) - 26 - 31 Denominator for diluted income per common share - weighted average shares 221,573 234,356 224,671 233,908 (Loss) income per Common Share - Basic and Diluted: Continuing operations, net $ (0.04 ) $ 0.00 $ (0.03 ) $ 0.01 Discontinued operations, net 0.01 0.01 0.02 0.02 (Loss) income per common share - basic and diluted $ (0.03 ) $ 0.01 $ (0.01 ) $ 0.03 (1) |
Segments (Tables)
Segments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of NOI for Each Reportable Segment Information | The following tables provide Net Operating Income (“NOI”) for each reportable segment for the periods set forth below. For the Three Months Ended June 30, 2020 (Amounts in thousands) Total New York San Francisco Other Property-related revenues $ 168,455 $ 110,679 $ 54,827 $ 2,949 Property-related operating expenses (65,712 ) (47,213 ) (16,054 ) (2,445 ) NOI from unconsolidated joint ventures 10,376 2,680 9,165 (1,469 ) NOI (1) $ 113,119 $ 66,146 $ 47,938 $ (965 ) For the Three Months Ended June 30, 2019 (Amounts in thousands) Total New York San Francisco Other Property-related revenues $ 184,370 $ 118,741 $ 58,431 $ 7,198 Property-related operating expenses (67,572 ) (46,504 ) (17,479 ) (3,589 ) NOI from unconsolidated joint ventures 4,185 2,886 1,213 86 NOI (1) $ 120,983 $ 75,123 $ 42,165 $ 3,695 For the Six Months Ended June 30, 2020 (Amounts in thousands) Total New York San Francisco Other Property-related revenues $ 349,773 $ 232,256 $ 111,494 $ 6,023 Property-related operating expenses (134,177 ) (96,242 ) (32,973 ) (4,962 ) NOI from unconsolidated joint ventures 23,768 5,624 19,547 (1,403 ) NOI (1) $ 239,364 $ 141,638 $ 98,068 $ (342 ) For the Six Months Ended June 30, 2019 (Amounts in thousands) Total New York San Francisco Other Property-related revenues $ 370,163 $ 239,837 $ 115,615 $ 14,711 Property-related operating expenses (135,953 ) (94,607 ) (33,825 ) (7,521 ) NOI from unconsolidated joint ventures 9,596 7,543 1,913 140 NOI (1) $ 243,806 $ 152,773 $ 83,703 $ 7,330 (1) NOI is used to measure the operating performance of our properties. NOI consists of rental revenue (which includes property rentals, tenant reimbursements and lease termination income) and certain other property-related revenue less operating expenses (which includes property-related expenses such as cleaning, security, repairs and maintenance, utilities, property administration and real estate taxes). We use NOI internally as a performance measure and believe it provides useful information to investors regarding our financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level. Other real estate companies may use different methodologies for calculating NOI and, accordingly, our presentation of NOI may not be comparable to other real estate companies. |
Schedule of Reconciliation of NOI to Net Income Attributable to Common Stockholders | The following table provides a reconciliation of NOI to net income attributable to common stockholders for the periods set forth below. For the Three Months Ended For the Six Months Ended June 30, June 30, (Amounts in thousands) 2020 2019 2020 2019 NOI $ 113,119 $ 120,983 $ 239,364 $ 243,806 Add (subtract) adjustments to arrive to net income: Fee income 6,209 4,213 12,539 10,212 Depreciation and amortization expense (58,716 ) (60,277 ) (117,143 ) (120,989 ) General and administrative expenses (17,901 ) (17,695 ) (30,150 ) (35,138 ) NOI from unconsolidated joint ventures (10,376 ) (4,185 ) (23,768 ) (9,596 ) Loss from unconsolidated joint ventures (5,955 ) (456 ) (10,176 ) (1,483 ) Interest and other income, net 2,252 2,583 1,256 6,483 Interest and debt expense (36,009 ) (37,213 ) (72,628 ) (74,137 ) NOI from discontinued operations (2,147 ) (4,404 ) (4,358 ) (8,887 ) Other, net (169 ) (163 ) (320 ) (853 ) (Loss) income from continuing operations, before income taxes (9,693 ) 3,386 (5,384 ) 9,418 Income tax expense (138 ) (268 ) (742 ) (1,406 ) (Loss) income from continuing operations, net (9,831 ) 3,118 (6,126 ) 8,012 Income from discontinued operations, net 2,147 2,056 3,668 4,162 Net (loss) income (7,684 ) 5,174 (2,458 ) 12,174 Less: net (income) loss attributable to noncontrolling interests in: Consolidated joint ventures (405 ) (2,408 ) (1,919 ) (5,202 ) Consolidated real estate fund 1,235 (53 ) 1,212 (147 ) Operating Partnership 584 (258 ) 243 (661 ) Net (loss) income attributable to common stockholders $ (6,270 ) $ 2,455 $ (2,922 ) $ 6,164 |
Schedule of Total Assets for Each Reportable Segments Information | The following table provides the total assets for each of our reportable segments as of the dates set forth below. (Amounts in thousands) Total Assets as of: Total New York San Francisco Other June 30, 2020 $ 8,833,182 $ 5,438,820 $ 2,706,650 $ 687,712 December 31, 2019 8,734,135 5,439,929 2,708,463 585,743 |
Organization and Business - Add
Organization and Business - Additional Information (Details) ft² in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020USD ($)ft²PropertiesTheatre | Jun. 30, 2020USD ($)ft²PropertiesTheatre | |
Real Estate Properties [Line Items] | ||
Number of Real Estate Properties | Properties | 14 | 14 |
Area of office and retail properties | ft² | 13.1 | 13.1 |
Percentage of office and retail properties leased | 95.60% | 95.60% |
Number of theatres | Theatre | 2 | 2 |
Rent collections in excess, percentage | 96.40% | |
Non-cash write-offs, primarily for straight-line rent receivables | $ 11,309,000 | $ 11,309,000 |
Uncollectible accounts receivable | $ 2,051,000 | $ 2,051,000 |
Office Tenants [Member] | ||
Real Estate Properties [Line Items] | ||
Annualized rent | 96.50% | |
Rent collections in excess, percentage | 97.80% | |
Retail, Parking Garages and Two Theatres [Member] | ||
Real Estate Properties [Line Items] | ||
Annualized rent | 3.50% | |
Rent collections in excess, percentage | 57.60% | |
Variable Interest Entities [Member] | Paramount Group Operating Partnership [Member] | ||
Real Estate Properties [Line Items] | ||
Percentage of ownership in operating partnership | 91.40% |
Dispositions - Additional Infor
Dispositions - Additional Information (Details) | 6 Months Ended | |||
Jun. 30, 2020USD ($)ft² | May 27, 2020USD ($)ft²$ / ft² | Mar. 06, 2020USD ($)ft² | Dec. 31, 2019USD ($) | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Area of office and retail properties | ft² | 13,100,000 | |||
Notes and mortgages payable | $ 3,812,716,000 | $ 3,809,643,000 | ||
1633 Broadway [Member] | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Sale percentage of office and retail properties | 10.00% | |||
Area of office and retail properties | ft² | 2,500,000 | |||
Valuation of office and retail properties | $ 2,400,000,000 | |||
Cost per square foot | $ / ft² | 960 | |||
Notes and mortgages payable | $ 1,250,000,000 | |||
Sale agreement amount | $ 111,984,000 | |||
Minority interest in jount ventures decrease, percentage | 10.00% | |||
1899 Pennsylvania Avenue [Member] | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Area of office and retail properties | ft² | 191,000 | |||
Sale agreement amount | $ 115,000,000 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Assets and Liabilities and Results of Operations Related to Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Balance Sheets: | |||||
Assets related to discontinued operations | $ 103,915 | $ 103,915 | $ 104,836 | ||
Expenses: | |||||
Income from discontinued operations, net | 2,147 | $ 2,056 | 3,668 | $ 4,162 | |
1899 Pennsylvania Avenue [Member] | |||||
Revenues: | |||||
Rental revenue | 3,515 | 7,078 | |||
Fee and other income | 31 | 130 | |||
Total revenues | 3,546 | 7,208 | |||
Expenses: | |||||
Operating | 1,399 | 2,850 | |||
Depreciation and amortization | 690 | ||||
Total expenses | 1,399 | 3,540 | |||
Income from discontinued operations, net | 2,147 | 3,668 | |||
1899 Pennsylvania Avenue [Member] | Discontinued Operations Held for Sale [Member] | |||||
Balance Sheets: | |||||
Real estate, net | 93,837 | 93,837 | 94,251 | ||
Deferred rent receivable | 4,008 | 4,008 | 4,206 | ||
Deferred charges, net | 780 | 780 | 804 | ||
Intangible assets, net | 5,290 | 5,290 | 5,575 | ||
Assets related to discontinued operations | $ 103,915 | $ 103,915 | $ 104,836 | ||
1899 Pennsylvania Avenue and Liberty Place [Member] | |||||
Revenues: | |||||
Rental revenue | 7,096 | 14,371 | |||
Fee and other income | 144 | 272 | |||
Total revenues | 7,240 | 14,643 | |||
Expenses: | |||||
Operating | 2,836 | 5,756 | |||
Depreciation and amortization | 2,348 | 4,725 | |||
Total expenses | 5,184 | 10,481 | |||
Income from discontinued operations, net | $ 2,056 | $ 4,162 |
Discontinued Operations - Sch_2
Discontinued Operations - Schedule of Cash Flows from Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
1899 Pennsylvania Avenue [Member] | |||
Statements of Cash Flows: | |||
Cash provided by operating activities | $ 2,292 | ||
Additional Cash Flow information: | |||
Depreciation and amortization | $ 690 | ||
1899 Pennsylvania Avenue and Liberty Place [Member] | |||
Statements of Cash Flows: | |||
Cash provided by operating activities | $ 9,059 | ||
Cash used in investing activities | (645) | ||
Additional Cash Flow information: | |||
Depreciation and amortization | $ 2,348 | 4,725 | |
Additions to real estate | $ (645) |
Investments in Unconsolidated_3
Investments in Unconsolidated Joint Ventures - Summary of Investments and Income from Investments In Unconsolidated Joint Ventures (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Schedule Of Equity Method Investments [Line Items] | |||||
Investments in unconsolidated joint ventures | $ 421,183 | $ 421,183 | $ 449,180 | ||
Loss from unconsolidated joint ventures | $ (5,955) | $ (456) | $ (10,176) | $ (1,483) | |
712 Fifth Avenue [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Equity method paramount ownership percentage | 50.00% | 50.00% | |||
Loss from unconsolidated joint ventures | $ 229 | 917 | $ 229 | 917 | |
Market Center [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Equity method paramount ownership percentage | 67.00% | 67.00% | |||
Investments in unconsolidated joint ventures | $ 197,250 | $ 197,250 | 219,593 | ||
Loss from unconsolidated joint ventures | $ (3,070) | $ (5,924) | |||
55 Second Street [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Equity method paramount ownership percentage | 44.10% | 44.10% | |||
Investments in unconsolidated joint ventures | $ 93,939 | $ 93,939 | 95,384 | ||
Loss from unconsolidated joint ventures | $ (662) | $ (1,346) | |||
111 Sutter Street [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Equity method paramount ownership percentage | 49.00% | 49.00% | |||
Investments in unconsolidated joint ventures | $ 39,417 | $ 39,417 | 41,519 | ||
Loss from unconsolidated joint ventures | $ (919) | (1,249) | $ (1,529) | (2,121) | |
60 Wall Street [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Equity method paramount ownership percentage | 5.00% | 5.00% | |||
Investments in unconsolidated joint ventures | $ 19,148 | $ 19,148 | 19,777 | ||
Loss from unconsolidated joint ventures | $ (9) | (149) | $ (91) | (298) | |
One Steuart Lane [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Equity method paramount ownership percentage | 35.00% | 35.00% | |||
Investments in unconsolidated joint ventures | $ 67,986 | $ 67,986 | 69,536 | ||
Loss from unconsolidated joint ventures | $ (1,549) | 8 | $ (1,550) | (7) | |
Oder-Center, Germany [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Equity method paramount ownership percentage | 9.50% | 9.50% | |||
Investments in unconsolidated joint ventures | $ 3,443 | $ 3,443 | $ 3,371 | ||
Loss from unconsolidated joint ventures | $ 25 | $ 17 | $ 35 | $ 26 |
Investments in Unconsolidated_4
Investments in Unconsolidated Joint Ventures - Summary of Investments and Income from Investments In Unconsolidated Joint Ventures (Parenthetical) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
712 Fifth Avenue [Member] | |
Schedule Of Equity Method Investments [Line Items] | |
Distributions made in excess of share of earnings recognized negative basis | $ 20,956 |
55 Second Street [Member] | |
Schedule Of Equity Method Investments [Line Items] | |
Difference between carrying amount of investment and equity | 493 |
60 Wall Street [Member] | |
Schedule Of Equity Method Investments [Line Items] | |
Difference between carrying amount of investment and equity | 2,691 |
One Steuart Lane [Member] | |
Schedule Of Equity Method Investments [Line Items] | |
Difference between carrying amount of investment and equity | 970 |
Oder-Center, Germany [Member] | |
Schedule Of Equity Method Investments [Line Items] | |
Difference between carrying amount of investment and equity | $ 4,593 |
Investments in Unconsolidated_5
Investments in Unconsolidated Joint Ventures - Summary of Financial Information of Unconsolidated Joint Ventures (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Schedule Of Equity Method Investments [Line Items] | |||||||
Real estate, net | $ 7,050,336 | $ 7,050,336 | $ 7,099,669 | ||||
Cash and cash equivalents and restricted cash | 556,459 | $ 306,379 | 556,459 | $ 306,379 | 331,487 | $ 365,409 | |
Intangible assets, net | 179,244 | 179,244 | 203,169 | ||||
Other assets | 45,340 | 45,340 | 51,373 | ||||
Total assets | [1] | 8,833,182 | 8,833,182 | 8,734,135 | |||
Notes and mortgages payable, net | 3,790,430 | 3,790,430 | 3,783,851 | ||||
Intangible liabilities, net | 65,769 | 65,769 | 73,789 | ||||
Other liabilities | 59,091 | 59,091 | 66,004 | ||||
Total liabilities | [1] | 4,245,506 | 4,245,506 | 4,103,173 | |||
Equity | 3,723,510 | 3,723,510 | 3,785,730 | ||||
Total liabilities and equity | 8,833,182 | 8,833,182 | 8,734,135 | ||||
Rental revenue | 163,989 | 174,044 | 339,414 | 349,385 | |||
Fee and other income | 7,129 | 7,299 | 15,690 | 16,347 | |||
Total revenues | 171,118 | 181,343 | 355,104 | 365,732 | |||
Operating | 64,313 | 64,736 | 131,327 | 130,197 | |||
Depreciation and amortization | 58,716 | 60,277 | 117,143 | 120,989 | |||
Total expenses | 141,188 | 142,890 | 279,081 | 287,242 | |||
Interest and other (loss) income, net | 2,252 | 2,583 | 1,256 | 6,483 | |||
Interest and debt expense | (36,009) | (37,213) | (72,628) | (74,137) | |||
Net loss before income taxes | (9,693) | 3,386 | (5,384) | 9,418 | |||
Income tax expense | (138) | (268) | (742) | (1,406) | |||
Net (loss) income attributable to common stockholders | (6,270) | 2,455 | (2,922) | 6,164 | |||
Unconsolidated Joint Ventures [Member] | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Real estate, net | 2,605,205 | 2,605,205 | 2,581,738 | ||||
Cash and cash equivalents and restricted cash | 99,300 | 99,300 | 75,071 | ||||
Intangible assets, net | 140,312 | 140,312 | 172,041 | ||||
Other assets | 38,594 | 38,594 | 36,218 | ||||
Total assets | 2,883,411 | 2,883,411 | 2,865,068 | ||||
Notes and mortgages payable, net | 1,706,229 | 1,706,229 | 1,648,403 | ||||
Intangible liabilities, net | 31,522 | 31,522 | 38,377 | ||||
Other liabilities | 91,771 | 91,771 | 65,759 | ||||
Total liabilities | 1,829,522 | 1,829,522 | 1,752,539 | ||||
Equity | 1,053,889 | 1,053,889 | 1,112,529 | ||||
Total liabilities and equity | 2,883,411 | 2,883,411 | $ 2,865,068 | ||||
Rental revenue | 59,136 | 36,455 | 121,583 | 74,679 | |||
Fee and other income | 777 | 393 | 1,524 | 491 | |||
Total revenues | 59,913 | 36,848 | 123,107 | 75,170 | |||
Operating | 29,642 | 15,274 | 55,582 | 29,677 | |||
Depreciation and amortization | 29,099 | 15,082 | 59,281 | 29,207 | |||
Total expenses | 58,741 | 30,356 | 114,863 | 58,884 | |||
Interest and other (loss) income, net | (29) | 201 | 48 | 299 | |||
Interest and debt expense | (14,305) | (12,323) | (30,214) | (23,850) | |||
Net loss before income taxes | (13,162) | (5,630) | (21,922) | (7,265) | |||
Income tax expense | (5) | (44) | (8) | ||||
Net (loss) income attributable to common stockholders | $ (13,167) | $ (5,630) | $ (21,966) | $ (7,273) | |||
[1] | Represents the consolidated assets and liabilities of Paramount Group Operating Partnership LP, a Delaware limited partnership (the “Operating Partnership”). The Operating Partnership is a consolidated variable interest entity (“VIE”), of which we are the sole general partner and own approximately 91.4% as of June 30, 2020. The assets and liabilities of the Operating Partnership, as of June 30, 2020, include $4,019,707 and $2,537,846 of assets and liabilities, respectively, of certain VIEs that are consolidated by the Operating Partnership. See Note 12, Variable Interest Entities (“VIEs”). |
Investments in Unconsolidated_6
Investments in Unconsolidated Real Estate Funds - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Investment Holdings [Line Items] | |||||
Investments in unconsolidated real estate funds | $ 13,041,000 | $ 13,041,000 | $ 10,317,000 | ||
Income from unconsolidated real estate funds | 89,000 | $ 19,000 | 141,000 | $ 65,000 | |
Fund VIII [Member] | |||||
Investment Holdings [Line Items] | |||||
Capital commitments | 775,200,000 | ||||
Capital commitments invested | $ 628,088,000 | $ 628,088,000 | |||
Alternative Investment Fund, Interest Rate | 1.30% | 1.30% | |||
Fund X [Member] | |||||
Investment Holdings [Line Items] | |||||
Capital commitments | $ 192,000,000 | ||||
Capital commitments invested | $ 78,791,000 | $ 78,791,000 | |||
Alternative Investment Fund, Interest Rate | 7.80% | 7.80% |
Intangible Assets and Intangibl
Intangible Assets and Intangible Liabilities - Summary of Intangible Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Intangible assets: | |||||
Gross amount | $ 438,402 | $ 438,402 | $ 466,099 | ||
Accumulated amortization | (259,158) | (259,158) | (262,930) | ||
Intangible assets, Net | 179,244 | 179,244 | 203,169 | ||
Intangible liabilities: | |||||
Gross amount | 163,977 | 163,977 | 174,670 | ||
Accumulated amortization | (98,208) | (98,208) | (100,881) | ||
Intangible Liabilities, Net | 65,769 | 65,769 | $ 73,789 | ||
Leases, Acquired-in-Place, Market Adjustment [Member] | |||||
Intangible liabilities: | |||||
Amortization of above and below-market leases, net (component of "rental revenue") | 1,235 | $ 2,747 | 2,778 | $ 6,043 | |
Leases, Acquired-in-Place [Member] | |||||
Intangible liabilities: | |||||
Amortization of acquired in-place leases (component of "depreciation and amortization") | $ 9,190 | $ 11,777 | $ 18,682 | $ 24,530 |
Intangible Assets and Intangi_2
Intangible Assets and Intangible Liabilities - Schedule of Estimated Annual Amortization of Acquired Below-Market Leases, Net of Acquired Above-Market Leases and In Place Leases (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Finite Lived Intangible Assets [Line Items] | |
2021 | $ (3,647) |
2022 | (1,177) |
2023 | (4,604) |
2024 | (5,540) |
2025 | (4,179) |
Leases, Acquired-in-Place [Member] | |
Finite Lived Intangible Assets [Line Items] | |
2021 | 26,420 |
2022 | 21,923 |
2023 | 17,856 |
2024 | 14,387 |
2025 | $ 10,480 |
Debt - Summary of Outstanding D
Debt - Summary of Outstanding Debt (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2020 | May 27, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Notes and mortgages payable, Interest Rate | 3.32% | ||
Notes and mortgages payable | $ 3,812,716,000 | $ 3,809,643,000 | |
Credit Facility | 200,000,000 | 36,918,000 | |
Less: deferred financing costs | (22,286,000) | (25,792,000) | |
Total notes and mortgages payable, net | $ 3,790,430,000 | 3,783,851,000 | |
Credit Facility With Variable Rate [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Maturity date of debt | 2022-01 | ||
Interest Rate | 1.34% | ||
Credit Facility | $ 200,000,000 | 36,918,000 | |
Credit Facility With Variable Rate [Member] | London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Fixed/Variable Rate | 1.15% | ||
1633 Broadway [Member] | |||
Debt Instrument [Line Items] | |||
Notes and mortgages payable | $ 1,250,000,000 | ||
1633 Broadway [Member] | Mortgages and Notes Payable with Fixed Rate [Member] | |||
Debt Instrument [Line Items] | |||
Maturity date of debt | 2029-12 | ||
Notes and mortgages payable, Interest Rate | 2.99% | ||
Notes and mortgages payable | $ 1,250,000,000 | 1,250,000,000 | |
One Market Plaza [Member] | Mortgages and Notes Payable with Fixed Rate [Member] | |||
Debt Instrument [Line Items] | |||
Maturity date of debt | 2024-02 | ||
Notes and mortgages payable, Interest Rate | 4.03% | ||
Notes and mortgages payable | $ 975,000,000 | 975,000,000 | |
1301 Avenue of Americas [Member] | |||
Debt Instrument [Line Items] | |||
Notes and mortgages payable, Interest Rate | 2.61% | ||
Notes and mortgages payable | $ 850,000,000 | 850,000,000 | |
1301 Avenue of Americas [Member] | Mortgages and Notes Payable with Fixed Rate [Member] | |||
Debt Instrument [Line Items] | |||
Maturity date of debt | 2021-11 | ||
Notes and mortgages payable, Interest Rate | 3.05% | ||
Notes and mortgages payable | $ 500,000,000 | 500,000,000 | |
1301 Avenue of Americas [Member] | Mortgages and Notes Payable with Variable Rate [Member] | |||
Debt Instrument [Line Items] | |||
Maturity date of debt | 2021-11 | ||
Notes and mortgages payable, Interest Rate | 1.99% | ||
Notes and mortgages payable | $ 350,000,000 | 350,000,000 | |
1301 Avenue of Americas [Member] | Mortgages and Notes Payable with Variable Rate [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Fixed/Variable Rate | 1.80% | ||
31 West 52nd Street [Member] | Mortgages and Notes Payable with Fixed Rate [Member] | |||
Debt Instrument [Line Items] | |||
Maturity date of debt | 2026-05 | ||
Notes and mortgages payable, Interest Rate | 3.80% | ||
Notes and mortgages payable | $ 500,000,000 | 500,000,000 | |
300 Mission Street [Member] | Mortgages and Notes Payable with Fixed Rate [Member] | |||
Debt Instrument [Line Items] | |||
Maturity date of debt | 2023-10 | ||
Notes and mortgages payable, Interest Rate | 3.65% | ||
Notes and mortgages payable | $ 237,716,000 | $ 234,643,000 |
Debt - Summary of Outstanding_2
Debt - Summary of Outstanding Debt (Parenthetical) (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
1633 Broadway [Member] | ||
Debt Instrument [Line Items] | ||
Ownership interest rate of property | 90.00% | 90.00% |
One Market Plaza [Member] | ||
Debt Instrument [Line Items] | ||
Ownership interest rate of property | 49.00% | 49.00% |
300 Mission Street [Member] | ||
Debt Instrument [Line Items] | ||
Ownership interest rate of property | 31.10% | 31.10% |
Equity - Additional Information
Equity - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jul. 01, 2020 | Nov. 05, 2019 | |
Class Of Stock [Line Items] | |||||||
Common stock shares authorized amount | $ 200,000,000 | ||||||
Stock repurchased, value | $ 100,000,000 | $ 6,488,000 | $ 100,000,000 | $ 6,488,000 | |||
Stock repurchased, price per share | $ 9.21 | ||||||
Subsequent Event [Member] | |||||||
Class Of Stock [Line Items] | |||||||
Stock repurchase amount available for future repurchase | $ 100,000,000 | ||||||
Common Stock [Member] | |||||||
Class Of Stock [Line Items] | |||||||
Stock repurchased | 0 | 10,856,865 | 474,000 | 10,857,000 | 474,000 | ||
Stock repurchased, value | $ 5,000 | $ 109,000 | $ 5,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Summary of Changes in Accumulated Other Comprehensive Loss by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |||||
Amount of loss related to the cash flow hedges recognized in other comprehensive loss | [1] | $ (13,608) | $ (20,846) | ||
Amounts reclassified from accumulated other comprehensive loss decreasing interest and debt expense | [1] | (1,737) | (3,525) | ||
Amount of loss related to unconsolidated joint ventures recognized in other comprehensive loss | [2] | $ (2,104) | $ (76) | $ (16,672) | $ (184) |
Amounts reclassified from accumulated other comprehensive loss increasing loss from unconsolidated joint ventures | $ 408 | $ 315 | |||
[1] | Represents amounts related to interest rate swaps with an aggregate notional amount of $1.0 billion and forward starting interest rate swaps with an aggregate notional amount of $400,000 that were designated as cash flow hedges. These hedges were terminated in November 2019 in connection with the refinancing of the related asset. | ||||
[2] | Primarily represents amounts related to the change in the fair value of an interest rate swap with a notional value of $402,000. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Summary of Changes in Accumulated Other Comprehensive Loss by Component (Parenthetical) (Details) - Designated as Hedging Instrument [Member] | Jun. 30, 2019USD ($) |
Interest Rate Swap [Member] | Unconsolidated Joint Ventures [Member] | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Aggregate notional amount | $ 402,000,000 |
Interest Rate Swap [Member] | Cash Flow Hedge [Member] | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Aggregate notional amount | 1,000,000,000 |
Forward Interest Rate Swap [Member] | Cash Flow Hedge [Member] | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Aggregate notional amount | $ 400,000,000 |
Noncontrolling Interests - Addi
Noncontrolling Interests - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Noncontrolling Interest [Abstract] | ||
Consolidated joint ventures | $ 436,183 | $ 360,778 |
Noncontrolling interests in consolidated real estate fund aggregated | 79,243 | 72,396 |
Operating partnerships | 348,740 | 412,058 |
Redemption value | $ 160,217 | $ 344,638 |
Common units conversion basis | one-for-one |
Variable Interest Entities ("_3
Variable Interest Entities ("VIEs") - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2020 | |
Variable Interest Entities [Member] | Paramount Group Operating Partnership [Member] | |
Variable Interest Entity [Line Items] | |
Percentage of ownership in operating partnership | 91.40% |
Variable Interest Entities ("_4
Variable Interest Entities ("VIEs") - Summary of Assets and Liabilities of Consolidated Variable Interest Entities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Variable Interest Entity [Line Items] | |||||
Real estate, net | $ 7,050,336 | $ 7,099,669 | |||
Cash and cash equivalents and restricted cash | 556,459 | 331,487 | $ 306,379 | $ 365,409 | |
Deferred rent receivable | 321,480 | 301,588 | |||
Deferred charges, net | 123,446 | 126,367 | |||
Intangible assets, net | 179,244 | 203,169 | |||
Other assets | 45,340 | 51,373 | |||
Total assets | [1] | 8,833,182 | 8,734,135 | ||
Notes and mortgages payable, net | 3,790,430 | 3,783,851 | |||
Accounts payable and accrued expenses | 105,924 | 117,356 | |||
Intangible liabilities, net | 65,769 | 73,789 | |||
Other liabilities | 59,091 | 66,004 | |||
Total liabilities | [1] | 4,245,506 | 4,103,173 | ||
Variable Interest Entities [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Real estate, net | 3,490,042 | 1,685,391 | |||
Cash and cash equivalents and restricted cash | 110,860 | 69,828 | |||
Investments in unconsolidated joint ventures | 67,986 | 69,535 | |||
Accounts and other receivables | 5,636 | 2,140 | |||
Deferred rent receivable | 178,933 | 57,338 | |||
Deferred charges, net | 56,572 | 24,030 | |||
Intangible assets, net | 85,662 | 29,872 | |||
Other assets | 24,016 | 21,132 | |||
Total assets | 4,019,707 | 1,959,266 | |||
Notes and mortgages payable, net | 2,449,538 | 1,205,324 | |||
Accounts payable and accrued expenses | 47,631 | 35,252 | |||
Intangible liabilities, net | 36,297 | 19,841 | |||
Other liabilities | 4,380 | 13,047 | |||
Total liabilities | $ 2,537,846 | $ 1,273,464 | |||
[1] | Represents the consolidated assets and liabilities of Paramount Group Operating Partnership LP, a Delaware limited partnership (the “Operating Partnership”). The Operating Partnership is a consolidated variable interest entity (“VIE”), of which we are the sole general partner and own approximately 91.4% as of June 30, 2020. The assets and liabilities of the Operating Partnership, as of June 30, 2020, include $4,019,707 and $2,537,846 of assets and liabilities, respectively, of certain VIEs that are consolidated by the Operating Partnership. See Note 12, Variable Interest Entities (“VIEs”). |
Variable Interest Entities ("_5
Variable Interest Entities ("VIEs") - Summary of Investments in Unconsolidated Real Estate Funds and Maximum Risk of Loss from Investments (Details) - Unconsolidated Real Estate Funds [Member] - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Carrying Value of Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated real estate funds | $ 13,041 | $ 10,317 |
Asset Management Fees and Other Receivables [Member] | ||
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated real estate funds | 652 | 37,563 |
Maximum Risk of Loss [Member] | ||
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated real estate funds | $ 13,693 | $ 47,880 |
Variable Interest Entities ("_6
Variable Interest Entities ("VIEs") - Summary of Investments in Unconsolidated Real Estate Funds and Maximum Risk of Loss from Investments (Parenthetical) (Details) - USD ($) $ in Thousands | Mar. 27, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | ||
Due from affiliates | $ 36,918 | |
Fund X [Member] | ||
Variable Interest Entity [Line Items] | ||
Due from affiliates | $ 36,918 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value of Financial Assets Measured at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities (included in "other assets") | $ 11,275 | $ 21,639 |
Total assets | 11,275 | 21,639 |
Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities (included in "other assets") | 11,275 | 21,639 |
Total assets | $ 11,275 | $ 21,639 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Carrying Amounts and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Carrying Amount [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Notes and mortgages payable | $ 3,812,716 | $ 3,809,643 |
Revolving credit facility | 200,000 | 36,918 |
Total liabilities | 4,012,716 | 3,846,561 |
Fair Value [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Notes and mortgages payable | 3,868,933 | 3,848,266 |
Revolving credit facility | 200,007 | 36,919 |
Total liabilities | $ 4,068,940 | $ 3,885,185 |
Leases - Additional Information
Leases - Additional Information (Details) | Jun. 30, 2020 |
Minimum [Member] | |
Lessor Lease Description [Line Items] | |
Lease term | 5 years |
Maximum [Member] | |
Lessor Lease Description [Line Items] | |
Lease term | 15 years |
Leases - Schedule of Rental Rev
Leases - Schedule of Rental Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation Of Revenue [Abstract] | ||||
Fixed rental revenues | $ 153,868 | $ 161,146 | $ 314,544 | $ 321,464 |
Variable rental revenues | 10,121 | 12,898 | 24,870 | 27,921 |
Total rental revenues | $ 163,989 | $ 174,044 | $ 339,414 | $ 349,385 |
Leases - Schedule of Rental R_2
Leases - Schedule of Rental Revenues (Parenthetical) (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Disaggregation Of Revenue [Abstract] | ||
Non-cash write-offs, primarily for straight-line rent receivables | $ 11,309,000 | $ 11,309,000 |
Uncollectible accounts receivable | $ 2,051,000 | $ 2,051,000 |
Leases - Schedule of Future Und
Leases - Schedule of Future Undiscounted Cash Flows Under Non-Cancelable Operating Leases (Details) | Jun. 30, 2020USD ($) |
Leases [Abstract] | |
2020 | $ 303,858 |
2021 | 637,562 |
2022 | 623,463 |
2023 | 600,458 |
2024 | 573,047 |
2025 | 512,692 |
Thereafter | 2,349,856 |
Total | $ 5,600,936 |
Fee and Other Income - Summary
Fee and Other Income - Summary of Fee and Other Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Fee income: | ||||
Total fee income | $ 6,209 | $ 4,213 | $ 12,539 | $ 10,212 |
Other income | 920 | 3,086 | 3,151 | 6,135 |
Total fee and other income | 7,129 | 7,299 | 15,690 | 16,347 |
Property Management Fees [Member] | ||||
Fee income: | ||||
Total fee income | 2,239 | 1,599 | 4,689 | 3,241 |
Asset Management Fees [Member] | ||||
Fee income: | ||||
Total fee income | 3,571 | 2,290 | 7,092 | 4,608 |
Acquisition, Disposition and Leasing Fee [Member] | ||||
Fee income: | ||||
Total fee income | 1,331 | |||
Other Fee Income [Member] | ||||
Fee income: | ||||
Total fee income | $ 399 | $ 324 | $ 758 | $ 1,032 |
Interest and Other Income, ne_2
Interest and Other Income, net - Schedule of Interest and Other Income, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Interest And Other Income [Abstract] | ||||
Interest income, net | $ 428 | $ 1,741 | $ 1,416 | $ 3,118 |
Mark-to-market of investments in our deferred compensation plans | 1,824 | 842 | (160) | 2,911 |
Preferred equity investment income | 454 | |||
Total interest and other income, net | $ 2,252 | $ 2,583 | $ 1,256 | $ 6,483 |
Interest and Other Income, ne_3
Interest and Other Income, net - Schedule of Interest and Other Income, Net (Parenthetical) (Details) | Mar. 01, 2019 |
PGRESS Equity Holdings L.P. [Member] | |
Schedule Of Investment Income Reported Amounts By Category [Line Items] | |
Preferred equity redeemed percentage | 100.00% |
Interest and Debt Expense - Det
Interest and Debt Expense - Details of Interest and Debt Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Interest And Debt Expense [Abstract] | ||||
Interest expense | $ 33,690 | $ 34,388 | $ 67,991 | $ 68,511 |
Amortization of deferred financing costs | 2,319 | 2,825 | 4,637 | 5,626 |
Total interest and debt expense | $ 36,009 | $ 37,213 | $ 72,628 | $ 74,137 |
Incentive Compensation - Additi
Incentive Compensation - Additional Information (Details) - USD ($) | Jan. 17, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2020 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Stock-based compensation expense | $ 4,241,000 | $ 5,083,000 | $ 9,638,000 | $ 12,685,000 | |||
Equity Incentive Plan [Member] | Full Value Awards [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Shares available for grant | 6,975,375 | 6,975,375 | |||||
2016 Performance Program [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Performance measurement period, term | 3 years | ||||||
Performance goals met in percentile based on relative index | 30th percentile | ||||||
Units, Granted | 1,085,244 | ||||||
Earned Units | 216,005 | ||||||
Percentage of earned units | 19.90% | ||||||
Vested units | 107,996 | ||||||
Fair value granted | $ 10,520,000 | ||||||
Unrecognized compensation cost | $ 567,000 | $ 567,000 | |||||
Unrecognized compensation cost expected to be recognized over a weighted-average period | 6 months | ||||||
2016 Performance Program [Member] | Scenario Forecast [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Remaining units nonvested | 108,009 | ||||||
2019 Performance Program [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Performance measurement period, term | 3 years | ||||||
Performance measurement period, start date | Jan. 1, 2020 | ||||||
Performance measurement period, end date | Dec. 31, 2022 | ||||||
Reduction in percentage on number of LTIP units earned if negative TSR | 30.00% | ||||||
Fair value of awards granted | $ 7,488,250 | ||||||
Vesting period | 4 years | ||||||
2019 Performance Program [Member] | Share-Based Compensation Award Tranche One [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Percentage of earned units | 50.00% | ||||||
Percentage of the awards that vest | 50.00% | ||||||
2019 Performance Program [Member] | Share-Based Compensation Award Tranche Two [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Percentage of earned units | 50.00% | ||||||
Percentage of the awards that vest | 50.00% |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Computation of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Numerator: | ||||
Net (loss) income from continuing operations attributable to common stockholders | $ (8,234) | $ 595 | $ (6,266) | $ 2,404 |
Earnings allocated to unvested participating securities | (14) | (4) | (26) | (13) |
Numerator for (loss) income from continuing operations per common share - basic and diluted | (8,248) | 591 | (6,292) | 2,391 |
Income from discontinued operations attributable to common stockholders | 1,964 | 1,860 | 3,344 | 3,760 |
Earnings allocated to unvested participating securities | (4) | (14) | (11) | (24) |
Numerator for income from discontinued operations per common share - basic and diluted | 1,960 | 1,846 | 3,333 | 3,736 |
Numerator for (loss) income per common share - basic and diluted | $ (6,288) | $ 2,437 | $ (2,959) | $ 6,127 |
Denominator: | ||||
Weighted average common shares outstanding | 221,573,199 | 234,329,904 | 224,671,206 | 233,877,117 |
Effect of dilutive stock-based compensation plans | 26,000 | 31,000 | ||
Denominator for diluted income per common share - weighted average shares | 221,573,199 | 234,355,864 | 224,671,206 | 233,908,236 |
(Loss) income per Common Share - Basic and Diluted: | ||||
Continuing operations, net | $ (0.04) | $ 0 | $ (0.03) | $ 0.01 |
Discontinued operations, net | 0.01 | 0.01 | 0.02 | 0.02 |
(Loss) income per common share - basic and diluted | $ (0.03) | $ 0.01 | $ (0.01) | $ 0.03 |
Earnings Per Share - Summary _2
Earnings Per Share - Summary of Computation of Earnings Per Share (Parenthetical) (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Effect of dilutive securities excluded from computation of earning per share | 22,917 | 26,812 | 24,201 | 27,180 |
Related Parties - Additional In
Related Parties - Additional Information (Details) - USD ($) | Mar. 27, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | ||||||
Fee and other income | $ 7,129,000 | $ 7,299,000 | $ 15,690,000 | $ 16,347,000 | ||
Accounts and other receivables, net | 18,738,000 | 18,738,000 | $ 19,231,000 | |||
Property management, asset management, leasing and other related services fee income | 6,209,000 | 4,213,000 | 12,539,000 | 10,212,000 | ||
Transaction related costs | 258,000 | 182,000 | 461,000 | 918,000 | ||
Accounts payable and accrued expenses | $ 105,924,000 | 105,924,000 | 117,356,000 | |||
Due from Affiliates | 181,000,000 | |||||
Repayment of note receivables | $ 36,918,000 | 11,000,000 | ||||
Fund X [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Due from Affiliates | 36,918,000 | |||||
Repayment of note receivables | $ 36,918,000 | |||||
Repayment of accrued interest | $ 349,000 | |||||
Note receivables basis spread on variable rate | 2.20% | 2.20% | ||||
712 Fifth Avenue [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Equity method paramount ownership percentage | 50.00% | 50.00% | ||||
CNBB-RDF Holdings Otto Family [Member] | Management Agreements [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Fee and other income | $ 259,000 | 211,000 | $ 707,000 | 420,000 | ||
Accounts and other receivables, net | 0 | 0 | 0 | |||
Unconsolidated Joint Ventures and Real Estate Funds [Member] | Management Agreements [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Accounts and other receivables, net | 3,418,000 | 3,418,000 | 2,734,000 | |||
Property management, asset management, leasing and other related services fee income | $ 5,396,000 | 3,511,000 | $ 10,709,000 | 8,058,000 | ||
Hamburg Trust Consulting GMBH ("HTC") [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Mark-up cost percentage | 10.00% | 10.00% | ||||
Transaction related costs | $ 126,000 | 62,000 | $ 265,000 | 686,000 | ||
Accounts payable and accrued expenses | $ 252,000 | $ 252,000 | $ 38,000 | |||
Hamburg Trust Consulting GMBH ("HTC") [Member] | Chairman, Chief Executive Officer and President [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage of ownership | 100.00% | 100.00% | ||||
Mannheim Trust [Member] | Board of Director [Member] | 712 Fifth Avenue [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Equity method paramount ownership percentage | 50.00% | 50.00% | ||||
Lease rental income | $ 90,000 | 90,000 | $ 181,000 | 181,000 | ||
Kramer Design Services [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Accounts payable and accrued expenses | 47,000 | 47,000 | ||||
Development expenses | $ 140,000 | $ 140,000 | ||||
Kramer Design Services [Member] | 712 Fifth Avenue [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Equity method paramount ownership percentage | 50.00% | 50.00% | ||||
Expense recognized | $ 14,000 | $ 103,000 | $ 29,000 | $ 103,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 6 Months Ended | ||
Jun. 30, 2020ft² | Feb. 16, 2018USD ($) | Nov. 23, 2014ft² | |
Other Commitments [Line Items] | |||
Area of office properties | ft² | 13,100,000 | ||
Minimum [Member] | New York State Division Of Taxation And Finance [Member] | |||
Other Commitments [Line Items] | |||
Loss Contingency, Estimate of Possible Loss | $ | $ 0 | ||
Maximum [Member] | New York State Division Of Taxation And Finance [Member] | |||
Other Commitments [Line Items] | |||
Loss Contingency, Estimate of Possible Loss | $ | $ 45,500,000 | ||
718 Fifth Avenue [Member] | |||
Other Commitments [Line Items] | |||
Percentage of tenancy-in-common interest in property | 50.00% | ||
Put right notice period | 12 months | ||
712 Fifth Avenue [Member] | |||
Other Commitments [Line Items] | |||
Percentage of ownership interest in new joint venture | 50.00% | ||
Owned by Affiliate [Member] | 718 Fifth Avenue [Member] | Third Party Affiliate [Member] | |||
Other Commitments [Line Items] | |||
Percentage of ownership interest in new joint venture | 25.00% | ||
Owned by Affiliate [Member] | Parent Company [Member] | Put Right Exercised [Member] | 718 Fifth Avenue [Member] | |||
Other Commitments [Line Items] | |||
Pre IPO ownership percentage | 25.00% | ||
Owned by Affiliate [Member] | Retail Type Space [Member] | 718 Fifth Avenue [Member] | |||
Other Commitments [Line Items] | |||
Area of office properties | ft² | 19,050 |
Segments - Additional Informati
Segments - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2020Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segments - Schedule of NOI for
Segments - Schedule of NOI for Each Reportable Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Property-related revenues | $ 168,455 | $ 184,370 | $ 349,773 | $ 370,163 |
Property-related operating expenses | (65,712) | (67,572) | (134,177) | (135,953) |
NOI from unconsolidated joint ventures | 10,376 | 4,185 | 23,768 | 9,596 |
NOI | 113,119 | 120,983 | 239,364 | 243,806 |
New York [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Property-related revenues | 110,679 | 118,741 | 232,256 | 239,837 |
Property-related operating expenses | (47,213) | (46,504) | (96,242) | (94,607) |
NOI from unconsolidated joint ventures | 2,680 | 2,886 | 5,624 | 7,543 |
NOI | 66,146 | 75,123 | 141,638 | 152,773 |
San Francisco [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Property-related revenues | 54,827 | 58,431 | 111,494 | 115,615 |
Property-related operating expenses | (16,054) | (17,479) | (32,973) | (33,825) |
NOI from unconsolidated joint ventures | 9,165 | 1,213 | 19,547 | 1,913 |
NOI | 47,938 | 42,165 | 98,068 | 83,703 |
Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Property-related revenues | 2,949 | 7,198 | 6,023 | 14,711 |
Property-related operating expenses | (2,445) | (3,589) | (4,962) | (7,521) |
NOI from unconsolidated joint ventures | (1,469) | 86 | (1,403) | 140 |
NOI | $ (965) | $ 3,695 | $ (342) | $ 7,330 |
Segments - Schedule of Reconcil
Segments - Schedule of Reconciliation of NOI to Net Income Attributable to Common Stockholders (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting [Abstract] | ||||
NOI | $ 113,119 | $ 120,983 | $ 239,364 | $ 243,806 |
Fee income | 6,209 | 4,213 | 12,539 | 10,212 |
Depreciation and amortization expense | (58,716) | (60,277) | (117,143) | (120,989) |
General and administrative expenses | (17,901) | (17,695) | (30,150) | (35,138) |
NOI from unconsolidated joint ventures | (10,376) | (4,185) | (23,768) | (9,596) |
Loss from unconsolidated joint ventures | (5,955) | (456) | (10,176) | (1,483) |
Interest and other income, net | 2,252 | 2,583 | 1,256 | 6,483 |
Interest and debt expense | (36,009) | (37,213) | (72,628) | (74,137) |
NOI from discontinued operations | (2,147) | (4,404) | (4,358) | (8,887) |
Other, net | (169) | (163) | (320) | (853) |
(Loss) income from continuing operations, before income taxes | (9,693) | 3,386 | (5,384) | 9,418 |
Income tax expense | (138) | (268) | (742) | (1,406) |
(Loss) income from continuing operations, net | (9,831) | 3,118 | (6,126) | 8,012 |
Income from discontinued operations, net | 2,147 | 2,056 | 3,668 | 4,162 |
Net (loss) income | (7,684) | 5,174 | (2,458) | 12,174 |
Consolidated joint ventures | (405) | (2,408) | (1,919) | (5,202) |
Consolidated real estate fund | 1,235 | (53) | 1,212 | (147) |
Operating Partnership | 584 | (258) | 243 | (661) |
Net (loss) income attributable to common stockholders | $ (6,270) | $ 2,455 | $ (2,922) | $ 6,164 |
Segments - Schedule of Total As
Segments - Schedule of Total Assets for Each Reportable Segments Information (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Total assets | [1] | $ 8,833,182 | $ 8,734,135 |
New York [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 5,438,820 | 5,439,929 | |
San Francisco [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 2,706,650 | 2,708,463 | |
Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | $ 687,712 | $ 585,743 | |
[1] | Represents the consolidated assets and liabilities of Paramount Group Operating Partnership LP, a Delaware limited partnership (the “Operating Partnership”). The Operating Partnership is a consolidated variable interest entity (“VIE”), of which we are the sole general partner and own approximately 91.4% as of June 30, 2020. The assets and liabilities of the Operating Partnership, as of June 30, 2020, include $4,019,707 and $2,537,846 of assets and liabilities, respectively, of certain VIEs that are consolidated by the Operating Partnership. See Note 12, Variable Interest Entities (“VIEs”). |