Paramount Group ( (PGRE) ) has released its Q3 earnings. Here is a breakdown of the information Paramount Group presented to its investors.
Paramount Group, Inc., based in New York City, is a real estate investment trust specializing in owning and managing Class A office properties in New York City and San Francisco. The company is recognized for its strategic focus on high-quality assets in prime business districts.
In its third quarter earnings report for 2024, Paramount Group reported a net loss of $9.7 million, equivalent to $0.04 per diluted share, while its Core Funds from Operations (Core FFO) stood at $40.5 million or $0.19 per diluted share. The company also announced an upward revision in its earnings guidance for the full year of 2024, indicating a positive outlook for the coming months.
Key financial highlights include a slight decrease in Core FFO compared to the previous year and a modest increase in Same Store Net Operating Income by 1.8%. However, Same Store Cash NOI saw a decrease of 2.9%. Paramount also reported leasing activity totaling 179,403 square feet, with a weighted average initial rent of $84.55 per square foot. The leasing of second-generation space showed negative mark-to-market results, reflecting a challenging market environment.
Despite the reported net loss, Paramount’s management has raised its full-year guidance for Core FFO, reflecting improved portfolio operations. The updated guidance now estimates Core FFO per diluted share to be between $0.78 and $0.80, up from the previous estimate.
Looking ahead, Paramount Group’s management remains cautiously optimistic, focusing on enhancing portfolio operations and navigating market conditions to maintain its position in the competitive real estate sector.
