Paramount Group Inc Stock Price, News & Analysis

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.

Paramount Group (NYSE: PGRE) reported its Q4 2024 financial results, showing a net loss of $38.6 million ($0.18 per share), an improvement from the $205.6 million loss in Q4 2023. The company's Core FFO was $41.2 million ($0.19 per share), down from $47.4 million in Q4 2023.

Key operational metrics showed a 0.4% decrease in Same Store NOI and a 0.1% decrease in Same Store Cash NOI. The company leased 108,824 square feet during Q4, with negative mark-to-markets of 7.2% on GAAP basis and 11.1% on cash basis.

In a significant transaction, PGRE sold a 45% equity interest in 900 Third Avenue at a $210 million valuation, receiving approximately $94 million in net proceeds. For 2025, the company projects Core FFO between $0.51 and $0.57 per diluted share, lower than 2024's $0.80, primarily due to major tenant lease expirations.

Paramount Group (NYSE: PGRE) has announced it will release its fourth quarter 2024 financial results on Thursday, February 27, 2025, after the NYSE trading closes. The company will also file its annual report on Form 10-K for the year ended December 31, 2024.

A conference call and audio webcast are scheduled for Friday, February 28, 2025, at 10:00 a.m. ET, where management will discuss Q4 results and business performance, followed by a Q&A session. The call can be accessed via domestic (877-407-0789) or international (201-689-8562) numbers. An audio replay will be available from 1:00 p.m. ET on February 28 through March 7, 2025.

Paramount Group (NYSE: PGRE) has announced the sale of a 45% interest in 900 Third Avenue, a Class A office building in Midtown Manhattan, at a gross asset valuation of $210 million. The company will retain the remaining 55% ownership and continue to manage and lease the property.

The 36-story building, designed by Cesar Pelli, Viñoly Design Architects and Emery Roth and Sons, spans approximately 600,000 square feet. Located between 54th and 55th Streets, the property features efficient floor plates, exceptional light and views, and proximity to eight subway lines and Grand Central Terminal.

Paramount Group (NYSE: PGRE) has disclosed the tax treatment of its common stock dividends for 2024. The company will distribute three quarterly dividends of $0.035 per share, totaling $0.105 for the year. Of each dividend payment, $0.01961 is classified as taxable ordinary dividends (qualified REIT dividends under Section 199A), while $0.01539 represents a non-taxable return of capital. The dividend payments are scheduled for January 12, April 15, and July 15, 2024, with corresponding record dates of December 29, 2023, March 28, 2024, and June 28, 2024.