The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Blaine Heck - Wells Fargo Securities, LLC - Analyst
: Great, thanks, good morning. So first I was hoping to get some colour on Market Centre. It was reported that the debt is, is being marketed for sale.
Can you just talk about the reception from the market thus far? And your thoughts on timing and potential pricing of the sale?
Question: Blaine Heck - Wells Fargo Securities, LLC - Analyst
: Okay, great. Thanks Wilbur. And then can you just talk about what's driving the decrease, least rate guidance at the end of the year? Given that the
leasing volume guidance increased?
Question: Blaine Heck - Wells Fargo Securities, LLC - Analyst
: Okay, great. That's really helpful. And then, I think we've gone through the upcoming expirations a lot on this call in past quarters, but I wanted to
take a step back and ask, When you think you might see a trough in occupancy just based on the headwinds that you have and kind of knowing
any of the progress you might have made on working with the tenants to renew or backfill some of these spaces.
I guess. Is there any level of occupancy or time frame that you'd be comfortable talking about now as a potential floor that we can kind of look
forward to?
Question: Blaine Heck - Wells Fargo Securities, LLC - Analyst
: Great. Thanks, Albert.
Question: Steve Sakwa - Evercore ISI - Analyst
: Yes Great. Good morning. Albert, I just, I wanted to touch on your comment about transaction market and, the company sort of looking for deals.
I mean, how are you sort of thinking about your own current valuation and the ability to deploy capital? I guess, what, what kind of returns would
it take for you to kind of pull the trigger?
In the past, you've, you've looked at share buybacks as a as an option to deploy capital. So, how do you sort of think about new acquisitions, higher
leverage buybacks and has anything changed in your calculus as you look forward?
Question: Steve Sakwa - Evercore ISI - Analyst
: Okay. Thanks for that colour. And maybe one for Peter just trying to think through all of the AI demand that has surfaced in San Francisco.
I just, how are you thinking about that activity? And, and I guess more importantly, like what are the tenants looking for either? What part of the
city, what type of building, what type of space, does the paramount portfolio in any way, shape or form play a role in what they're looking for or is
it, They want to be in different parts of the city and different types of buildings that don't necessarily mesh up with the types of assets you own
today.
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OCTOBER 31, 2024 / 2:00PM, PGRE.N - Q3 2024 Paramount Group Inc Earnings Call
Question: Steve Sakwa - Evercore ISI - Analyst
: Great. That's it for me. Thanks.
Question: Dylan Brzyski - Green Street Advisors, LLC - Analyst
: Hey guys, I guess just sort of continuing on the, on that AI theme, I guess as you guys are looking at sort of the credit of these AI tenants, I mean,
how are you guys going about that? obviously there's still a lot of uncertainty over whether or not this AI environment is sort of a bubble and which
companies are going to survive on a long term basis.
So just sort of curious as you guys are sort of looking at these companies a lot of them being new to you aa as you had alluded to Peter, just sort
of how you guys are viewing it from a credit perspective.
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OCTOBER 31, 2024 / 2:00PM, PGRE.N - Q3 2024 Paramount Group Inc Earnings Call
Question: Dylan Brzyski - Green Street Advisors, LLC - Analyst
: That's helpful and then. I think you guys mentioned, Appetite amongst your JB partners to look to invest capital in office today, obviously, still
taking a more cautious approach than other property types probably.
And I think on the Q1 call, you guys kind of alluded to your JB partners looking to achieve, call it a 7% to 10% unlevered IRR, I guess, have those
unlevered IRR expectations changed? And are you sort of seeing an IRR premium required to, for those looking to put capital to work in San Francisco
versus in New York?
Question: Dylan Brzyski - Green Street Advisors, LLC - Analyst
: Great. Thanks, appreciate the time.
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