Paramount Group Inc Stock Price, News & Analysis

Rithm Capital (NYSE:RITM) has announced a definitive agreement to acquire Paramount Group (NYSE:PGRE) for $1.6 billion in an all-cash transaction. Under the agreement, Rithm will pay $6.60 per share for all outstanding Paramount common stock.

The acquisition includes 13 owned and 4 managed Class A office properties totaling over 13.1 million square feet, with an 85.4% occupancy rate as of June 30, 2025. The portfolio is primarily located in premium markets of New York City and San Francisco. The transaction is expected to close in late Q4 2025, subject to Paramount stockholder approval and customary closing conditions.

Rithm plans to fund the acquisition through a combination of cash, balance sheet liquidity, and potential co-investor opportunities. The deal aims to expand Rithm's commercial real estate footprint and enhance its asset management capabilities.

Paramount Group (NYSE:PGRE) has successfully completed a $900 million refinancing of its 1301 Avenue of the Americas property, a 1.8 million square-foot Class A office building in Midtown Manhattan. The new five-year, interest-only loan features a fixed rate of 6.39% and will mature in August 2030.

The refinancing was supported by strong leasing performance, with the building achieving over 97% leased occupancy. The net proceeds will be used to repay the existing $860 million loan due in August 2026 and fund future leasing costs.

Paramount Group (NYSE:PGRE) reported its Q2 2025 financial results, showing a net loss of $19.8 million ($0.09 per share) compared to a $7.8 million loss in Q2 2024. The company raised its 2025 Core FFO guidance to $0.55-$0.59 per share, up $0.03 at midpoint from previous guidance.

Key operational highlights include leasing 404,710 square feet in Q2 at a weighted average initial rent of $91.93 per square foot, and a total of 688,584 square feet leased through June. The company reported a 0.5% increase in Same Store Cash NOI but a 4.6% decrease in Same Store NOI compared to Q2 2024.

In May 2025, PGRE sold a 25% equity interest in One Front Street in San Francisco at a $255 million valuation, providing $11.5 million in net proceeds after costs and $40.5 million in seller financing.

Paramount Group (NYSE:PGRE) has scheduled its second quarter 2025 financial results release for July 30, 2025 after market close. The company will host a conference call and webcast to discuss the results on July 31, 2025 at 10:00 a.m. ET.

Management will provide business performance commentary followed by a Q&A session. Investors can access the call via phone or through the company's website, with replay options available until August 7, 2025.

Paramount Group (NYSE: PGRE) has announced a strategic review to maximize shareholder value, following a strong Q1 with robust leasing momentum. The company aims to address the gap between its market valuation and intrinsic value. BofA Securities and Latham & Watkins LLP have been engaged as financial and legal advisors respectively. The review will be conducted by a Transaction Committee of independent directors, with no set timeline or guaranteed outcome. Additionally, Paramount announced key management changes: Ermelinda Berberi, former SVP and Chief Accounting Officer, has been promoted to EVP, CFO and Treasurer. Timothy Dembo, former VP Counsel, is now SVP, General Counsel and Secretary. They replace Wilbur Paes and Gage Johnson, who are stepping down from their respective positions.

Paramount Group (NYSE: PGRE) has announced the sale of a 25% stake in One Front Street, a Class A office building in San Francisco, at a gross asset valuation of $255 million. The company will retain a 75% ownership interest and continue managing and leasing the 649,000 square foot property. As part of the deal, Paramount provided $40.5 million in seller financing at a 5.50% fixed rate for two years and received net proceeds of $11.5 million. The 38-story building, designed by Skidmore, Owings & Merrill, offers views of both Golden Gate and Bay Bridges and benefits from excellent transit connectivity including BART, MUNI, and the Transbay Transit Center.

Paramount Group (NYSE: PGRE) has secured a significant 121,000 square foot lease with law firm Benesch at 1301 Avenue of the Americas, a 1.8 million square-foot Class A office building in Midtown Manhattan. The lease spans 16.5 years, with approximately 30,000 square feet designated for short-term use. This new agreement brings the building's occupancy rate to 90%.

The 45-story office tower, designed by Skidmore, Owings & Merrill, offers direct access to Rockefeller Center and features premium amenities, including membership to the exclusive Paramount Club. The property boasts natural lighting, views of Central Park, and proximity to upscale retail, dining, and subway connections.

Paramount Group reported its Q1 2025 financial results, showing a net loss of $10.0 million ($0.05 per share), compared to a net income of $9.9 million in Q1 2024. Core Funds from Operations (FFO) decreased to $37.9 million ($0.17 per share) from $47.9 million ($0.22 per share) year-over-year.

Key highlights include:

• Same Store Net Operating Income decreased by 5.4%
• Leased 283,874 square feet at $76.52 per square foot average rent
• Same store leased occupancy increased to 86.2%
• Sold 45% equity stake in 900 Third Avenue for $94.0 million net proceeds

The company modified its credit facility, reducing commitments to $450.0 million and limiting borrowings to $200.0 million through June 2025. Full-year 2025 guidance projects Core FFO between $0.51 and $0.57 per share.

Paramount Group (NYSE: PGRE) has scheduled the release of its first quarter 2025 financial results on Wednesday, April 30, 2025, after the New York Stock Exchange trading hours. The company will file its quarterly report on Form 10-Q for the quarter ended March 31, 2025, with the SEC.

A conference call and audio webcast will be held on Thursday, May 1, 2025, at 10:00 a.m. ET, featuring management discussions on quarterly results and business performance, followed by a Q&A session. Participants can join via phone (877-407-0789 domestic; 201-689-8562 international) or through the company's website. An audio replay will be available from 1:00 p.m. ET on May 1 through May 8, 2025.