NYSE$PGRE

Paramount Group Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Paramount Group, Inc. reported its fourth quarter and full year 2024 financial results, including net loss attributable to common stockholders, Core FFO, and changes in Same Store NOI and leased occupancy.

Paramount Group, Inc. reported a net loss attributable to common stockholders of $38.6 million for the fourth quarter of 2024, a significant improvement from the $205.6 million loss in the same period last year. Core FFO attributable to common stockholders was $41.2 million, or $0.19 per diluted share. Same Store NOI decreased slightly by 0.4%, while leased occupancy increased by 10 basis points to 84.8%.

  • Net loss attributable to common stockholders improved significantly to $38.6 million in Q4 2024 from $205.6 million in Q4 2023, primarily due to lower non-cash real estate impairment losses.
  • Core Funds from Operations (Core FFO) attributable to common stockholders was $41.2 million, or $0.19 per diluted share, for Q4 2024.
  • Same Store Net Operating Income (NOI) decreased by 0.4% and Same Store Cash NOI decreased by 0.1% in Q4 2024 compared to the prior year.
  • Leased occupancy for same store properties increased by 10 basis points to 84.8% at December 31, 2024, with 108,824 square feet leased during the quarter.

Headline financials

Total Revenue

$186M

Previous: $192M-3.2%
EPS (adj)

$0.19

Previous: $0.21-9.5%
Same Store NOI Decrease

0.4%

No prior period
Same Store Cash NOI Decrease

-0.1%

No prior period
Leased Occupancy

84.8%

Previous: 84.7%+0.1%
Second Generation Space Mark-to-Markets (GAAP)

-7.2%

No prior period
Second Generation Space Mark-to-Markets (Cash)

-11.1%

No prior period
Weighted Average Lease Term

11.1

No prior period
Weighted Average TI and LC

$15.74

No prior period
Capital Expenditures

-$118M

Previous: -$33.2M-256.4%
Net Income

-$48.1M

Previous: -$272M+82.3%
Operating Income

$77M

Previous: -$271M+128.4%

Revenue & EPS history

Paramount · Revenue · Quarterly

$186M

Q4 2024-3.2%vs Q4 2023
Beat estimate in 13 of 15 quarters(87%)
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 estimates its 2025 Core FFO will be between $0.51 and $0.57 per diluted share, with a midpoint of $0.54 per diluted share. This guidance reflects anticipated decreases in Cash NOI due to lease expirations, lower non-cash straight-line rent and amortization, and the impact of the 900 Third Avenue disposition, partially offset by a decrease in general and administrative expenses.

Tailwinds

  • Anticipated decrease in general and administrative expenses of $0.01 per diluted share.
  • The company continues to focus on maximizing portfolio value through strategic asset management.
  • The disposition of a 45.0% equity interest in 900 Third Avenue generated net proceeds of approximately $94.0 million, strengthening financial position.
  • The company's guidance for 2025 Core FFO provides a clear outlook for future performance.
  • The company's ability to enter into new leases or renew leases on favorable terms is a key factor in its future performance.

Headwinds

  • Expected decrease in Cash NOI of $0.17 per diluted share, primarily due to the expiration of two of the Company's largest tenants' leases in 2025.
  • Anticipated decrease in non-cash straight-line rent and amortization of above and below-market lease revenue, net of $0.04 per diluted share.
  • Expected decrease of $0.02 per diluted share from the disposition of a 45.0% equity interest in 900 Third Avenue in January 2025.
  • Anticipated decrease in fee and other income of $0.02 per diluted share.
  • Anticipated decrease in lease termination income of $0.01 per diluted share and an increase in interest and debt expense of $0.01 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 · overlaid with Q4 2024

Historical avgQ4 2024

+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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro