- Earnings call transcript Q3 2022

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Operator

Good day, ladies and gentlemen. Thank you for standing by. Welcome to Paramount Group Third Quarter 2022 Earnings Conference Call. [Operator Instructions] Please note that this conference call is being recorded today, October 27, 2022. I will now turn the conference over to Tom Hennessy, Vice President of Business Development, and Investor Relations. ahead. go Please

Tom Hennessy

and operator, everyone. Thank good you, morning,

under we our third I which section released be of like the Group Results and www.pgre.com. would to everyone were found can Both site point the to yesterday. heading quarter Investors information, Financial in Before supplemental begin, the Web XXXX at Paramount release earnings

within the federal of of comments Some meaning our will the be laws. forward-looking statements securities

expect. or Therefore, results as other usually risks identified impact our by use will, Forward-looking our interpreting to to expect, such SEC risks we relying you could filings should and future materially for operating that phrases on could results detailed statements, uncertainties are in financial the which and what numerous similar them. of the subject to a condition. We are that of words you exercise from should refer and more cause caution discussion differ actual

our for the believe Officer, Paes, discuss During not Brindley, which Operating useful will and measures to for Behler, Executive we as Peter the quarter questions. directly measures in Estate. our turn These provide operating Officer GAAP. I be GAAP Chief and we be opening accordance the in will our Chief some a Chairman, Financial and call Management then Treasurer; comparable evaluating Vice of in call that, over is should will Albert. our Albert considered call we isolation the can the the call, the Mr. Hosting performance. or Real company's President, will Head remarks, non-GAAP substitute measures, With of open release to company; supplemental have information. Wilbur we today, measure available Officer Executive President and Chief XXXX and most of reconciliation earnings financial third prepared A results these with in

Albert Behler

expectations. in $X.XX core quarter for Thank you, this the morning. the you, midpoint reported of Wilbur result, us of guidance everyone, per And NOI per are our of with core slightly growth. narrowing same-store $X.XX as positive Tom, we joining share. greater our year-over-year share results in a and results detail. We our FFO financial cash thank XXXX line were guidance FFO will and full-year with third for and These review maintaining

During the quarter, feet. XXX,XXX square feet, to XXX,XXX square we leased year-to-date bringing about over leasing

quarter's feet square than roughly more more our This and leasing XX,XXX leasing quarter quarter XX,XXX square first second than leasing results. feet was our

longer more getting role. such, same-store leasing less our feet XXXX portfolio volumes well of on space we by While a therewith, view of remain but taking are of we with and, reduced before to our leased leased in the activity with pipeline, and some XX.X% a the up vacant continue our role execute Notwithstanding, lease line conjunction goal. are as deals occupancy our remains very reduced generally ambitious our modest we our have at as executed In de-risk the reductions future function reflection norms, midpoint. These year-end. XXX,XXX to in also full-year at deals square historical have guidance leasing

that acceleration such New The the as The portfolio exploration recent in execution rails to over North of of XX strong A Island the property are office February past highest Wall and since our leasing utilization almost recording in and quarter workforce de-risked Street continuous are to was pandemic the in New We increased York. Day where and Our ridership. the has which space perform largest at Agricole Sixth proud portfolio set XXXX of Avenue, Long XXX,XXX return Journal over tenants. diverse activity XXXX. and is by Agricole peak O'Melveny O'Melveny office passed continued article own XX% expected post by the leasing feet role to including Commuter leasing an XX%. just of railroad roster we Sixth to rates XXX,XXX at XXXX Metro The Myers with months in Credit We and year-to-date as a XXXX. the to was was expire York third indication March XXXX New velocity. XXXX accounted began to office late our Credit approximately will highlighted a use been has welcome square climb. office Avenue of well now of continues at of was foot Sixth square our by highlighted lease driven they for returning industry-leading the and Labor the take rate to occupied manifesting floors in York Avenue, currently see four the our

York, market. lag we to are and more the COVID-XX, work. believe over positive demonstrate where cash our New square very leased in in GAAP as The market rates but see portfolio flight markets leasing $XXX flight on at portfolio, the see strong. a initial Francisco are While were we not we strong a from key the we the still space trend muted returning San robust for and own leasing the the New quality of outbreak remains on on basis pricing is before a XX,XXX to New in quality, rent office developments our basis. each at volume these square the results feet with of XX% in vibrancy to remains namely to space continues market, modest second-generation compared both back San foot X.X% continue of per a increasing the advantage we We Francisco the to space more starting quality the to activity The office prevalence York portfolios York while as a of tenants restoring benefit to volume on our

know their conscious that know The every high-quality Paramount continue to tenants leasing look are this these employees. for this categories. tenants, benefit and discerning box well-located, and seeking buildings expect ticks to well-amenitized we We from as in phenomenon for when well-operated, environmentally

to at evaluating continues bay buyers macroeconomic interest The Turning sellers rates when to activity improve. keep market, transaction conditions remain will and backdrop the rising muted. and

part, we a the million capital a X.X our have carefully. date, average at the monitor aggregate. of markets opportunistically $X.XX in approach For million maintained To shares price disciplined and share repurchased $XX.X weighted with to continued we our or per always

As has billion quarter. since began, pandemic continued the maintain we $X.X to been of about liquidity, which the the case amounts end the sufficient at to

the defensive pandemic will We well turn remain our the a I of term. With that, since capital, allocate onset trophy proven to for to of the have call ability stable have with maintained our portfolio assets we and posture Peter. the long positioned

Peter Brindley

Thanks, and morning. Albert, good

third quarter, the square weighted During term average years. a XXX,XXX feet we leased XX.X of for approximately lease

heavily foot quarter was York feet to of or New was XXX,XXX Our XX% weighted third square Americas, significant discerning Myers the toward leased with mentioned transactions of this the at quarter's during it today's attract tenants. quarter O'Melveney most square building the leasing of approximately Among Avenue the leasing activity as XXX,XXX previously with the exemplifies the continues XXXX lease and most appeal which further total.

portfolio-wide both up from Francisco. benefit continue At as best-in-class quarter our leased at basis healthy and unchanged same-store from points occupancy in last XX.X%, buildings we pursuing remains was York San rate share New quarter tenants XXX to and pipeline end, Our year-over-year.

and XXXX. per expirations expiring by lease ahead, manageable As X.X% we at through with annum approximately share are X.X% year-end share look remaining at expiring our

QX Turning of quarterly Midtown's excluding to million XXXX. third renewals, second X.X total and our approximately square was of quarter leasing above Midtown's quarterly X-year markets, highest leasing average activity since X.X% feet, the pre-pandemic was

in and leasing third improve contributing during in The by real was especially small relocations. activity, mid-sized elevated Midtown the the for share Despite in five recent continues Midtown excess third high-quality net drive the quarter's sector desire solid, that quarter, leasing the in estate quality currently the positive the past in quarter, of of in the their tenants, Midtown. fourth quality of particularly of to absorption. space net Class buildings. Midtown Midtown's and accounts with yet has posted occupancy time New services direct ongoing during trend the activity to that market in activity XX% York. well-located has quarterly Financial remains volume flight transaction of marking continued quarters another Tenant's the third resulted raise rate, XX% led absorption bar the positive the market large availability for to to quarter And well realized tour A

York was up New Our on share, same-store points quarter-over-quarter points basis at portfolio currently a basis XX.X% up year-over-year. XXX basis leased and XX

weighted than more During square the a term years. we XXX,XXX leased of at XX.X average quarter, feet third

York at with lease manageable X.X% by expiring per profile expiring is overall share Our year-end in share expiration and annum through XXXX. New at X.X%

currently the to an been the premier as take Labor Francisco, is and for increased to Day, activity highest tight encouraging to which San elevated Francisco's returning Despite the has remains office. XXXX, approach leasing muted to Francisco's a it now the Office has Turning and however, is San availability trend. market share. strong. a rate, market assets since a measured San for employers that same-store New York, San leased quality continues utilization remains and to a estate compel At employees our quarter XX.X% as remains on portfolio lever real trophy the space use their movement San momentum to assets, gain office. at Similar return to particularly economics, as to Francisco view is flight was basis continues in to to Francisco end, since

at feet initial weighted quarter, foot. we term a with years of of third XX,XXX average $XXX square rents approximately the X.X approximately per square During leased

share expiration Francisco is expiring by at X.X% X.X% our through at expiring in year-end Looking overall lease XXXX. and per annum ahead, share San with profile manageable

portfolio With through financial to the Wilbur, Francisco will will manage results. the discuss over Our is to summary, positioned environment. the turn call I San who well current that

Wilbur Paes

which X.X% in York by Same-store with like FFO quarter X.X%. solid portfolio, portfolio a first by the a growth and by XX%. once estimates the GAAP again third Peter. the third modest same-store prior X.X%. NOI New New in consensus the by per same-store decreasing year's by the York higher and of cash second San than X.X%, Francisco reported as line was at Much $X.XX we growth Francisco decreased San you, quarters, XX% expected, driven Yesterday, our while increasing quarter. share, Thank was robust with in a very grew growth NOI and our grew $X.XX core portfolio-wide, by strong

weighted a was a starting of at leases per XXX,XXX on a XX.X% years. second-generation During covering space cash on the and square feet and $XX.XX third XX quarter, feet a Mark-to-markets term of basis. basis on of executed foot of rent lease negative X.X% weighted average average square square positive XXX,XXX XX.X space for we GAAP

maintaining our midpoint. Given and of we for quarter outlook are remainder our at year, financial our the the in-line metrics results the third financial guidance

to continues share to and core X% respectively, expect cash growth FFO midpoint. to midpoint $X.XX and expectation and X%, continue for be the We GAAP our per be at at same-store NOI the

we under $XXX and billion our of almost the to comprised with of million balance the Turning ended of restricted our million sheet, undrawn cash capacity full quarter $XXX $X.X cash in credit revolving facility. and liquidity,

Our maturities rate and variable debt are laddered, exposure our to is limited. well

rate Our is interest quarter years. of billion interest fixed at outstanding average at debt of $X.XX X.XX%. of has end of and rate a average average [technical XX% has a our rate is difficulty] debt interest and remaining a floating weighted and was weighted XX% X.XX%, of weighted the X.X

and XXXX. open We With operator, lines the share debt please XXXX in maturing of roughly have no questions. in our X% debt for maturing of that,

Operator

you. Evercore ISI. go ahead. comes with Spahn question Our first Instructions] from Thank Please Brian [Operator

Brian Spahn

Hey, good morning.

at particular, there Or downside for elevated what's in start more what a vacancy the quite rents demand? is So, attract given price in concessions while, you risk think a Peter, curious in And are the point now do come just Francisco, just do face today? San there I'm lever market? could really the down? not maybe tenants enough you use with to been think Or have to you market

Peter Brindley

pressure of are well don't our But have I our leased. concessions Yes, time. We're They some portfolio feel downward occupied. rents. been on direct a elevated. is lot for well

in rents wouldn't have far power, see Our erosion tremendous markets. I direct to say go so as we pricing highly but buildings I improved. our on are And asking don't

Brian Spahn

Got it, okay.

Albert Behler

the assets, pricing say from see foot and the of a that of our I average share good that we lease rent of the market. can and San because Francisco get square advantage fair the pretty that in our get in we would you we -- per quality

we I to in So, say it's market a good trending concessions. over would to And to term hard and we say normal more But longer more the long develops how leases, pretty spot. also the are have run. also think then I are it's do

the to markets. be And other of are tending other concessions kind You have markets of course, more of peers are smaller where short-term ours those leases. they or in

Brian Spahn

could demand guess, coming I the building just San there particular, Okay. on efforts about Uber backfilling maybe Maybe the talk in back year? space Peter, and for that's outlook the you next Francisco. just

Peter Brindley

with activity activity on can't which Brian, in say XXXX. what start there. I'll tech back feet I in it's should think will power requirement Uber fundamentally, at more San going that see we office. be. our square And regard the is the of demonstrative we utilization some real say employees And July We it Sure, point, would space, to that have it's is more where not return even we companies business think And in this XXX,XXX much while fuel utilization, forward. like do space. I we'd as that I up have but to that the coming Francisco; the

tenant developing the Labor has I sort the demand to we we another to We We're Market year. see at most It the see returning real XX%, continued which to office meaningful of to terrific in time. Day. considerably of last added portfolio it's So, to perform. in before think One in do relative But approximately Francisco. more of progress is quarter. recent since assets all increased terms being trophy need course, tenants said, like That San up

we in San maintain to asset. and fundamentally, return Francisco, more a of technology continue would to pricing sort embrace same in York need to meaningful way. a say that about in We the office New power real the the user, I But

Brian Spahn

plans couple got issue. there But Wilbur, just last debt maybe next and you've where could to years. debt some I expiring about one talk X%. you on could a maturing next you And of your XXXX you the refinance believe think realize have don't for one at then of thanks. the you And lot maybe it, Ave swaps at I just over year Got

talk that you plans as in could just about well? addressing So, piece

Wilbur Paes

debt As X% on then XXX also are matures and piece half owner. ourselves avail has and we That we extension X% XXX we'll very, rolls our is phase. one have Two of than debt option and debt Mission you of to XXX markets those monitor pricing going ourselves The of an stack JV point XXXX, we XXXX. XX on Mission, know, we all into XXXX, less watch -- as where own, debt we the option which levered. maturing. is redevelopment of. second which debt out, see in Brian, the And assets that very where maturing, of an in that's of in of you a that an going where is. XX to are And will have you assets Sutter has extension Wall are avail this Sutter the of debt Wall good conservatively news of these for and XXX

the pocket this we on today. see markets So, we pay don't as coming risk to to be able feel down out we of of balance debt face the sheet

your fixed. our industry, As due XXXX. the XXXX the specific, swaps, see in we XX.X% continue debt of brethren the swap debt. until are think exposure monitor far the this position on be as to with and going But office to a I rate quite doesn't on the is remarks, develops. the variable relative that come prepared good at to our of respect question to rest remaining sitting to second to you in mentioned variable We're how part the think to the markets I I said our of is

environment to the current limited best. is exposure say rate our to So, interest

good variable. have a We and fixed mix of

Brian Spahn

Thanks very much.

Wilbur Paes

Sure.

Operator

Bank. comes go Please with question Deutsche ahead. Next Johnston Derek from

Derek Johnston

matching can So is was the velocity occupancy some divergence? Thank you. Can on XQ that that color of the in in you Hi, printed why hoping not clarify you quarter? leasing was level of your everybody. leased type provide

Albert Behler

Sure, Derek.

first Let me to Albert. and -- if We go I'll you we is are recall, -- do then leasing. this -- forward-looking always maybe trying

come. they these we where opportunities take So,

has to been that of the not so for has in the happening some year. been And leasing current come, happening years

to there going office these are early and in is And of whatever that, advance. you happening. And years and tenant It's a larger And increasing is years. we it's but that normally with discussions offices tenants couple plan, on, gives have things quite normal de-risking these a more little they plan to difficult lease encouraged if leasing are available. maybe space So, have that definitely future little management having we you a less sometimes occupancy but quite -- they are color. the and a because bit

Derek Johnston

there Okay. to I because… don't Wilbur well know wanted in jump if as

Wilbur Paes

go remarks we tall add -- goal of something I you sort was back was range in I we could cautioned if to was sufficient had that, but activity had prepared get Derek, to but the -- It think we quarter, if our felt order. that because last Maybe reduce visibility. still occupancy the to, not did done, to pipeline ambitious a that the there we was not get there

going start to, prelease-base On another leasing to said those same done. as Albert is we why to will. is, down we're with allude getting we to the before to if tried for fine-tune not wait you necessarily velocity quarter as respect occupancy was lease the your question, So, metrics, point

you of you Credit essentially, in lease existing gotten Agricole had would the or not If doesn't done due done that February until the So, that with XXXX. got have which come square lease space, vacant But it lease did seen on occupancy, Barclays XXX,XXX pull foot O'Melveney. will. floors former we if space, back on

you're what not the So, we're got credit whether around vacancy. on that that's block we or impact the -- done, it's occupancy. seeing happy block Barclays Agricole the But immediate it sit we what near-term when because is

lease on feet square have profile you that see XXX,XXX in XXXX in by expiration will we reduced lease that because, as noticed, will because the now that. space we de-risk expirations You our

versus metrics way So, that's far falls just as the Agricole the Barclays we're Unfortunately, that taking happy goes, Credit the it on as the block as block. out.

Derek Johnston

I more Okay, pretty thank picture, it. that's guess. you. appreciate last I helpful. bigger one, I guess Actually, one

in so you a have guys amount leasing done far XXXX. look, of So, fair

with environment, On more the you hybrid could dedicated new that post-COVID us? share perhaps entertaining that trends to space, you're notable regarding requirements, are a out? any you in de-densification or to any build Anything work perhaps be a attributable seeing space that interesting seeing the anything could or any

Peter Brindley

terms their of one-size-fits-all space. I in what's tenant's to do this improving trend have employees. it's that Say, that de-densification delivering an fluid like experience there's to do carry has think I is for and don't lot been I to this experience, in desire think market approach. tenants driving will think been some said. think a how active in I their play elevated a elevated are Tenants care deliver I forward. flight an about quality time

are what flexibility. In means, terms lot seeking think tenants that of of a I

brand either built tenants that opportunities Some to their as real of tenants of deals tenant being it. of as the different seeking there's so know most more idea is for this reflect It's what allow to like going important has their play. interaction of going looks result And these tenants. I a what will far sort they're in estate of experience in delivering changing communal I that's how a time, in for person. this and all who fully a improve exactly to firm. space they critically they're do would have a terms ways bigger terms in, better create But But in idea real to renewed a to there have deliver almost space, of say create and in outdoor forward. in interest you think that of needed all calibrated one-size-fits-all, what every flexibility is are a as don't because go of

year, relocating execute this specifically to I'm York, in far been so this has now market order by large tenants on New And describing. what defined in

say do, see seeing to we're start we'll midsize large we at lot but a tenants the That's York. looking what don't activity, of a think to starting New start time because pace to buildings. that's have to and of small to leasing tenants lot of in exactly do the we not total we're I in small follow see forward, to real tenants contribute And our suit. Going XXXX specifically midsized here

Wilbur Paes

own XXXX for San And of very and different well-amenitized nicely. in specifics. will its I York leased and If a helpful said future fully our Like have options us is think other grow, sizes offer. all one to in we that think has as team very, play wants kinds tenant pretty New to before, asset, be and each it each is property might a like that character but is asset and we important [Net spaces. in And that much Guards] its portfolio San being oriented than services of be especially the as I can I New Francisco. what's the offering his security and in Peter that more has past, this -- portfolio in beauty in [ph] service own also Francisco offer more the and well York, offering, the Paramount's

Derek Johnston

Thank you, guys.

Peter Brindley

you. Thank

Operator

from Next Mizuho. with Please ahead. question Vikram go comes Malhotra

Vikram Malhotra

much for question. the so taking Thanks

So, you'll et to give mentioned, you we be exposure, start blocks the you -- you, about lot -- thinking of, debt maybe on'XX, amongst now, can help as guidance that just us maybe but you from interest some maybe a the quarter I just Can Variable the us including variability, I know we cetera. there's of as rate trajectory? peers. focus with guess, should expirations, a your with bigger expense Wilbur

Wilbur Paes

going our and not Vikram, Sure. point, we're getting I is right say ahead that process without And would now. giving skis what And currently. guidance we're through of this at

we which, have as before, less cap of I know, caps of all good I debt stack, And debt mark. it X%. is than is through variable where at news rate our total said protected XX% rate we interest some think LIBOR the eclipsed as we on the have that that

debt of that and the on $XXX cap. it's which million is expires of the XXXX, LIBOR our cap rate benefiting August of is are cap variable largest we XXXX. debt variable. that And part That from stack debt, So, that's on in

have August So, and to at will on protection some that level, And look, by cap we obviously, a extend you loan. to through XXXX. continue then, the now new between

if guidance rather don't going -- interest XXXX interest $X.XX, trajectory expense deterioration to $X.XX call you're a think deterioration $X.XX yet, or a So, for looking giving earnings as result of without, the in you're interest at I see Paramount. again, to in beyond it,

Vikram Malhotra

And the should obviously, building anything move-outs, remind know be else of blocks, then just other us, just of? we but aware we the

Wilbur Paes

So, is July investor have have XXXX. team XX% know, look how of, at in share put status which February if as out you it's feet you 'XX. the what large is. Paramount rolled What And Barclays his which remaining Uber, the of our XXX,XXX Peter Credit already large upcoming vacancy Agricole, expires our got leased that investor at deck, large Vikram, blocks. is block we then role on de-risked the the of for But We of much really you did deck, space. blocks, have we some the that the XXX,XXX, and in is square and

we when So, want between look roll those have and feet blocks say two large that and Agricole under of Uber. rolling I is square at Credit about XX% you in XXX,XXX to XXXX,

Vikram Malhotra

of sort and Okay. trying markets across everyone and given if to where a have values rates have business sense get curious just That's also cap all. think just just of just sort to sense have better York New guess a of view in a have buildings? of partners you do get Europe. I the other other fund are are a settling not Albert, where I the is and -- I'm and Francisco, better you out you wanted between

Albert Behler

past, the increased. and can also debt in in say cap because have say, us, but and the more the invest and who the markets board, of add and is interest because United building talk equity today, ones value the And -- it's in more but the points, environment hard want the recession it's across building, situation very and with in very across in U.S. opportunistic. rates are than of hard fears -- I say so interest are XX front buy board, past not at least different, mean because of would the tightness The the and that talk in rates interest they and the cover. debt Europe, easy basis debt would funding to by that where rate but we'll about to financing I only to Yes. having States, more to for you the you environment not still the difficulties

strong They So, it interested, dollar core those people only because so back are investors more capital euro investments. much. today interested more is to are the make of definitely, who XX% tracking strengthened If the of comes basically equity in the dollar. has can't sense investing because

can go financial crisis, wait, I many under there have in we more interest, -- the would pressure. you to sheet. great more if and And who So, didn't really market as for owners, B the XXXX, are want they the sellers like get And ones Canadian in high get like And their capitalized, the the of or and to that. advantage for financial call big between while. and And participants The a ask. get ones are mezzanine pressure to class it, refinancing on under well these those from buyers crisis who of balance more will will on kind the coming of debt it's assets the the take seal discrepancy was to side sell and from a this Middle East. expected But think capitulate.

in opportunistic on partners equity, let's would core equity, and PGRE assets. more as not venture And our all. hurry are focused it We not it but with own and be, I fund a would last or calls, at said the in be joint very

Vikram Malhotra

much where better like company? past years, back just I higher several investors the valuing underlying bid last past, of guess sense referenced level. has you a this maybe two the we're from this company is to you trying the ask, received get of a PGRE company equity, a So, over bid obviously, the shares. clarification, at NAV bought And In the

saying And remind of else of buying so, and to next value? time not realized, equity for value are the us sort are you're today, what Paramount steps? price invest what sort for can you And versus shares, if right when just where the -- from apart people that the you is for realize to thinking to waiting is visioning

Albert Behler

I said not before, think changed. like has that had much -- and I

in And do said have shares And I controlled quarterly think to always with the think I we basis. it buying back on our a be will very makes on want sense. that basis. manner, that discussed Board leverage-neutral a a we

looking to We potentially properly. be point that to we And came They're in the would with are we ourselves time. for are of at joint have make we mentioned, these do valued to that didn't at at in opportunistic. kind mentioned best you we it to as core I market. that taking sense opportunities in venture shareholders. transparent the us conclusion partners We more very But to two like a our financial And the the assets good we any strategic think doing and kind don't Board very very do went the point. want both this controlled. advisors we I I think And assets. idea immediately past. were thing think this opportunity of at looked our about the because attempts to each had still And We would for also it's

shareholders to shareholder to long we develop -- for them opportunity generate sense have It long term. and a has and pooling could assets build it asset buy the each time buy green And to takes you like And the to make at And that more some long look them. developed to loan. but that value, a point investors. you we case. term buy of takes the gets -- and that's it the sell they a an and So, underappreciated by share, good sell not short-term long the like think

Vikram Malhotra

enough. Fair much. Thanks so

Albert Behler

You are welcome.

Operator

[Operator Ronald go Kamdem from Instructions] ahead. Stanley. with Next Please question comes Morgan

Ronald Kamdem

me Hey, thanks for having on.

for it more rate thought maybe of is this would New on just you me, helpful. color that lease of of maybe just San in is couple it -- year, maybe Just quick color tech? cut of tenants on trends, more just any a on industry, of sort done in the any Is Just York? could starting sort that is the can terms financial, Francisco? this like get you on any And be guidance, first it those one sort any the ones provide

Wilbur Paes

activity future it of February alluded Peter maybe and It got big And prepared is two because had that. done, call significant done again of to mean the vacant deal that at start his may some to not have as the as the question in that role, that de-risk before I'll mix Albert that if was cut the could, part or happens Barclays, that lease what know is of XXXX address I which leased the was and heard, we comfortable of pipeline, months feel done basically I of to forward, percentage. the tenant we drove existing but necessarily Agricole then rate it year-end. year-end versus remarks, deal of would the block, can degree portion due comes the which which activity by cut obviously, the on moving here activity that sit cut and the the is vacant beginning get a was in but there the enough that you Credit may is, far And occupancy seen a not. going. did so, in we and in block got and in as as the as jump say So, don't in the I block you didn't

to try thing the than don't have we year-end. not that more that, signed Peter? believe what we seem more because out say, so, let's before it conservative activity push was gets And likelihood to this doesn't do we

Peter Brindley

that say tenants is Credit I Ron, would just service type between space vacant sticking predominantly makeup, the Agricole professional [technical difficulty] companies. services of the and financial XXXX with

things York base I how that's One is. of think the about underappreciated diverse is New just the city's specifically tenant

shy activity, XX% contributing towards led been but way activity. contributing of services have across leasing year-to-date, technology while have they total leasing So, XXXX of been fairly Manhattan, active, very the in XX% just financial inactive

are moved just the Wilbur's they So, law haven't as to Agricole demand the evidenced just Credit point, seeing that as block. firms, financial completed as like. would deal we we But from tenants, service-type quickly on we by

of that, space. two we're and the working good those think through have position, doing tackling But sit of always success that we're order to And blocks blocking of all course. we so and we in on done we've a in

Ronald Kamdem

bit Great. on And just the sort then on color these Is any Like you my taking second just thematics is on, could bit longer I little point from are one was -- as is well, some to? also maybe just digging that home in a what closing what unclear on the saying? it leases. plans? Is tenants a comments, of it think, mentioned little Any of you work recession? opening there

Wilbur Paes

chime people, and less demand. tell you, home not a my would space home. from a direct obviously, it's can Obviously, as is work between element but work some colleagues to in there seen reduction needs correlation from the but of and the that on in, I we've

that, with more So, are the becoming getting that's respect starting employees office. more back and where demonstrative to we've seen companies not into to shift the

lot headwinds, driven think that persistent is the a to curb it rate by [indiscernible]. a trying of rising and it's through a that inflation, macroeconomic on I Fed whether hell-bent interest is

and of the holding the is So, fears people is think decisions. making of of lot a that in -- I terms back recession

to I alluded also that earlier in remarks. think his Albert

Ronald Kamdem

much. Great, thanks so

Peter Brindley

you. Thank

Operator

Officer There Albert President, Chief Executive like the are I to no to further conference closing questions and at Behler, turn this remarks. would for Chairman, time. over

Albert Behler

we further Thank joining much on you updates us forward today, and give for Paramount you the earnings Goodbye. are on call. looking very next to

Operator

today's concludes This teleconference.

you Have at time. for good your disconnect participation. a day. lines Thank may your You this

Paramount (PGRE) 28 Oct 222022 Q3 Earnings call transcript