NYSE$PGRE

Paramount Group Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Paramount Group reported a net loss for Q4 2019, but Core FFO remained strong. The company completed a major refinancing and acquisition, and leased a significant amount of space.

Paramount Group reported a net loss attributable to common stockholders of $50.1 million, or $0.22 per diluted share, for the quarter ended December 31, 2019. Core Funds from Operations (FFO) attributable to common stockholders was $58.3 million, or $0.26 per diluted share, for the same period. The company completed a $1.25 billion refinancing of 1633 Broadway and acquired Market Center in San Francisco through a joint venture.

  • Net loss attributable to common stockholders was $50.1 million, or $0.22 per diluted share.
  • Core FFO attributable to common stockholders was $58.3 million, or $0.26 per diluted share.
  • Same Store Cash NOI increased by 5.9%.
  • Leased 290,284 square feet, with the Company’s share being 164,744 square feet at a weighted average initial rent of $86.23 per square foot.

Headline financials

Total Revenue

$190M

Previous: $191M-0.1%
EPS (adj)

$0.26

Previous: $0.25+4.0%
Same Store Cash NOI Decrease

5.9%

No prior period
Leased Occupancy

95.9%

No prior period
Net Income

-$52.8M

Previous: $5.32M-1092.4%
Operating Income

-$53.3M

Previous: $45.5M-217.2%
Gross Profit

$123M

Previous: $123M+0.2%
Cash & Equivalents

$306M

Previous: $340M-9.8%
Total Assets

$8.73B

Previous: $8.76B-0.2%
Stock-Based Comp

$5M

Previous: $4.4M+13.6%

Revenue & EPS history

Paramount · Revenue · Quarterly

$190M

Q4 2019-0.1%vs Q4 2018
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Paramount · $184M total across 2 segments · Q4 2021

  • Rental Revenue
    $172M
  • Fee and Other Income
    $12.4M

Forward guidance

The Company is providing its Estimated Core FFO Guidance for the full year of 2020, which is reconciled below to estimated net income attributable to common stockholders per diluted share in accordance with GAAP. The Company estimates that net income attributable to common stockholders will be between $0.02 and $0.08 per diluted share. The estimated net income attributable to common stockholders per diluted share is not a projection and is being provided solely to satisfy the disclosure requirements of the Company estimates 2020 Core FFO to be between $1.00 and $1.06 per diluted share.

Tailwinds

  • increase in Same Store Cash NOI of 3.8% to 4.8%, resulting in an incremental $0.06 per diluted share
  • increase in Cash NOI of $0.04 per diluted share from acquisitions (Market Center, 55 Second Street and 111 Sutter Street), net of dispositions (Liberty Place) that closed during 2019
  • decrease in general and administrative expenses of $0.01 per diluted share
  • expects to realize a $0.02 per diluted share benefit due to a lower number of weighted average shares and units outstanding, resulting from the 7.2 million common shares that were repurchased during 2019.

Headwinds

  • decrease in non-cash straight-line rent and amortization of above and below-market lease revenue, net of $0.03 per diluted share
  • increase in interest and debt expense of $0.03 per diluted share, resulting from new debt in connection with the acquisitions of Market Center, 55 Second Street, and 111 Sutter Street
  • decrease in lease termination income of $0.02 per diluted share

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 16 quarterly earnings reports

Historical avg

+0.2%

Avg return

Earnings day

+1.5%

Avg return

5 days after

+2.1%

Avg return

30 days after

52%

23 / 44 earnings

Positive

+8.9%

Q3 2023

Best reaction

-6.9%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025
Q3 2025+0.2%+0.5%+0.9%
Q2 2025+1.8%+6.8%+19.8%
Q1 2025+7.2%+7.9%+41.4%
Q4 2024-2.0%-5.4%-7.4%
Q3 2024-2.6%-0.6%-1.8%
Q2 2024-2.1%-12.0%-2.5%
Q1 2024+3.4%+4.3%-2.1%
Q4 2023+7.1%+7.3%+2.0%
Q3 2023+8.9%+10.1%+9.8%
Q2 2023-6.9%-6.9%-0.8%
Q1 2023+6.4%+5.7%+6.6%
Q4 2022-3.1%-4.8%-28.9%
Q3 2022-4.5%-3.9%-5.6%
Q2 2022+1.1%+4.7%-3.9%
Q1 2022-1.8%-6.0%-9.2%
Q4 2021-3.7%+16.7%+15.1%
Q3 2021-4.0%
Q2 2021-0.9%
Q1 2021+1.0%
Q4 2020+0.2%
Q3 2020-3.4%
Q2 2020-1.4%
Q1 2020+7.5%
Q4 2019+1.9%
Q3 2019+2.9%
Q2 2019-2.2%
Q1 2019+0.0%
Q4 2018-2.1%
Q3 2018+0.8%
Q2 2018-1.4%
Q1 2018+1.3%
Q4 2017+0.4%
Q3 2017+0.5%
Q2 2017+1.0%
Q1 2017+1.0%
Q4 2016-1.4%
Q3 2016-3.1%
Q2 2016+1.2%
Q1 2016-0.5%
Q4 2015-1.0%
Q3 2015+0.9%
Q2 2015-1.0%
Q1 2015+1.0%
Q4 2014+1.0%
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013

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