| Segments |
Our reportable segments are separated by region, based on the two regions in which we conduct our business: New York and San Francisco. Our determination of segments is aligned with our method of internal reporting and the way our Chief Executive Officer, who is also our CODM, makes key operating decisions, evaluates financial results and manages our business. The following tables provide Paramount's share of Net Operating Income (“NOI”) for each reportable segment for the periods set forth below.
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For the Three Months Ended September 30, 2024 |
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(Amounts in thousands) |
Total |
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New York |
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San Francisco |
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Other |
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Property-related revenues |
$ |
188,123 |
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$ |
116,383 |
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$ |
71,523 |
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$ |
217 |
|
Property-related operating expenses |
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(80,316 |
) |
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(55,612 |
) |
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(23,498 |
) |
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(1,206 |
) |
NOI attributable to noncontrolling interests in
consolidated joint ventures |
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(23,723 |
) |
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(2,424 |
) |
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(21,299 |
) |
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- |
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NOI from unconsolidated joint ventures (1) |
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5,384 |
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3,407 |
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2,018 |
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(41 |
) |
Paramount's share of NOI (2) |
$ |
89,468 |
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$ |
61,754 |
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$ |
28,744 |
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$ |
(1,030 |
) |
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For the Three Months Ended September 30, 2023 |
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(Amounts in thousands) |
Total |
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New York |
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San Francisco |
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Other |
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Property-related revenues |
$ |
184,608 |
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$ |
118,749 |
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$ |
66,252 |
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$ |
(393 |
) |
Property-related operating expenses |
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(75,502 |
) |
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(52,470 |
) |
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(22,447 |
) |
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(585 |
) |
NOI attributable to noncontrolling interests in
consolidated joint ventures |
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(22,275 |
) |
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(3,049 |
) |
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(19,226 |
) |
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- |
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NOI from unconsolidated joint ventures (1) |
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5,240 |
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3,376 |
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1,865 |
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(1 |
) |
Paramount's share of NOI (2) |
$ |
92,071 |
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$ |
66,606 |
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$ |
26,444 |
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$ |
(979 |
) |
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For the Nine Months Ended September 30, 2024 |
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(Amounts in thousands) |
Total |
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New York |
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San Francisco |
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Other |
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Property-related revenues |
$ |
553,856 |
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$ |
347,669 |
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$ |
206,337 |
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$ |
(150 |
) |
Property-related operating expenses |
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(226,248 |
) |
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(156,992 |
) |
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(66,391 |
) |
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(2,865 |
) |
NOI attributable to noncontrolling interests in
consolidated joint ventures |
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(70,532 |
) |
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(7,600 |
) |
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(62,932 |
) |
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- |
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NOI from unconsolidated joint ventures (1) |
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16,611 |
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10,442 |
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6,128 |
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41 |
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Paramount's share of NOI (2) |
$ |
273,687 |
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$ |
193,519 |
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$ |
83,142 |
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$ |
(2,974 |
) |
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For the Nine Months Ended September 30, 2023 |
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(Amounts in thousands) |
Total |
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New York |
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San Francisco |
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Other |
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Property-related revenues |
$ |
536,211 |
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$ |
342,812 |
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$ |
194,564 |
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$ |
(1,165 |
) |
Property-related operating expenses |
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(216,889 |
) |
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(150,676 |
) |
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(64,529 |
) |
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(1,684 |
) |
NOI attributable to noncontrolling interests in
consolidated joint ventures |
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(67,551 |
) |
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(8,415 |
) |
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(59,136 |
) |
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- |
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NOI from unconsolidated joint ventures (1) |
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16,048 |
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10,143 |
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5,847 |
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58 |
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Paramount's share of NOI (2) |
$ |
267,819 |
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$ |
193,864 |
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$ |
76,746 |
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$ |
(2,791 |
) |
(1)Excludes NOI from One Steuart Lane, a for-sale residential condominium project, and “non-core” assets (Market Center and 111 Sutter Street). (2)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 include 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 Paramount's share of NOI to net loss attributable to common stockholders for the periods set forth below.
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For the Three Months Ended |
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For the Nine Months Ended |
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September 30, |
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September 30, |
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(Amounts in thousands) |
2024 |
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2023 |
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2024 |
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2023 |
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Paramount's share of NOI |
$ |
89,468 |
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$ |
92,071 |
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$ |
273,687 |
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$ |
267,819 |
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NOI attributable to noncontrolling interests in
consolidated joint ventures |
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23,723 |
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22,275 |
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70,532 |
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67,551 |
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Adjustments to arrive to net loss: |
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Fee income |
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6,776 |
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4,573 |
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17,328 |
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14,106 |
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Depreciation and amortization expense |
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(60,071 |
) |
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(60,263 |
) |
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(182,920 |
) |
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(181,778 |
) |
General and administrative expenses |
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(16,672 |
) |
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(15,460 |
) |
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(49,938 |
) |
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(46,307 |
) |
(Loss) income from real estate related fund investments |
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(22 |
) |
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2,060 |
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(92 |
) |
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(37,034 |
) |
Loss from unconsolidated joint ventures |
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(981 |
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(28,974 |
) |
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(3,098 |
) |
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(63,138 |
) |
NOI from unconsolidated joint ventures (1) |
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(5,384 |
) |
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(5,240 |
) |
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(16,611 |
) |
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(16,048 |
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Interest and other income, net |
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3,517 |
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4,115 |
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26,830 |
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10,007 |
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Interest and debt expense |
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(43,805 |
) |
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(39,102 |
) |
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(124,078 |
) |
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(112,440 |
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Other, net |
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(133 |
) |
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(853 |
) |
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(644 |
) |
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(1,190 |
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(Loss) income before income taxes |
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(3,584 |
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(24,798 |
) |
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10,996 |
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(98,452 |
) |
Income tax expense |
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(619 |
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(263 |
) |
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(1,328 |
) |
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(1,124 |
) |
Net (loss) income |
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(4,203 |
) |
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(25,061 |
) |
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9,668 |
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(99,576 |
) |
Less net (income) loss attributable to noncontrolling interests in: |
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Consolidated joint ventures |
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(6,959 |
) |
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(4,887 |
) |
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(18,434 |
) |
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(15,879 |
) |
Consolidated real estate related funds |
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581 |
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20,934 |
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408 |
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57,412 |
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Operating Partnership |
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893 |
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629 |
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716 |
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3,849 |
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Net loss attributable to common stockholders |
$ |
(9,688 |
) |
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$ |
(8,385 |
) |
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$ |
(7,642 |
) |
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$ |
(54,194 |
) |
(1)Excludes NOI from One Steuart Lane, a for-sale residential condominium project, and “non-core” assets (Market Center and 111 Sutter Street). The following table provides the total assets for each of our reportable segments as of the dates set forth below.
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(Amounts in thousands) |
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Total Assets as of: |
Total |
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New York |
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San Francisco |
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Other |
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September 30, 2024 |
$ |
7,890,952 |
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$ |
5,175,797 |
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$ |
2,357,819 |
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$ |
357,336 |
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December 31, 2023 |
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8,006,215 |
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5,214,504 |
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2,342,395 |
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449,316 |
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