Paramount (US:PGRE)2025-04-30 20:24Property Management and Leasing - As of March 31, 2025, the company owns and/or manages a portfolio of 18 properties totaling 13.8 million square feet[122] - In the three months ended March 31, 2025, the company leased 283,874 square feet, with a weighted average initial rent of $76.52 per square foot[131] - Same store leased occupancy increased by 140 basis points to 86.2% as of March 31, 2025, compared to 84.8% at December 31, 2024[131] - The weighted average lease term for leases signed during the three months was 12.9 years, with tenant improvements averaging $13.74 per square foot per annum[132] - The average free rent period for new leases was 12.3 months, indicating a trend in rent concessions[129] Financial Performance - Net loss attributable to common stockholders for the three months ended March 31, 2025, was $10,026,000, compared to a net income of $9,865,000 for the same period in 2024[137] - Funds from Operations (FFO) attributable to common stockholders decreased to $36,880,000, or $0.17 per diluted share, for Q1 2025, down from $59,821,000, or $0.28 per diluted share, in Q1 2024[138] - Core Funds from Operations (Core FFO) attributable to common stockholders was $37,891,000, or $0.17 per diluted share, for Q1 2025, compared to $47,938,000, or $0.22 per diluted share, for Q1 2024[139] - Total revenues for Q1 2025 were $187,019,000, a decrease of $1,858,000 from $188,877,000 in Q1 2024[146] - Operating expenses increased to $78,050,000 in Q1 2025 from $71,740,000 in Q1 2024, an increase of $6,310,000[149] - Same Store NOI decreased by 5.4% overall, with New York down 13.0% and San Francisco up 13.7% for Q1 2025 compared to Q1 2024[141] Debt and Liquidity - As of March 31, 2025, the company had $814,007,000 in liquidity, including $426,952,000 in cash and cash equivalents[161] - The company expects adequate liquidity over the next 12 months for all anticipated needs, including scheduled interest payments and capital improvements[162] - As of March 31, 2025, the company's outstanding consolidated debt totaled $3.69 billion, with no amounts due until June 2026[164] - The company has $15,000,000 of capacity remaining under a $200,000,000 stock repurchase program approved in November 2019[126] - The credit facility has a maturity date in March 2026, with an interest rate of 135 basis points over SOFR, and includes sustainability-linked pricing components[165] Joint Ventures and Investments - The joint venture owning Market Center defaulted on a $416,544,000 mortgage loan due to insufficient property cash flows[125] - Income from unconsolidated joint ventures increased to $1,907,000 in Q1 2025, compared to a loss of $1,346,000 in Q1 2024, an increase of $3,253,000[153] - As of March 31, 2025, the company's unconsolidated joint ventures had $1.81 billion of outstanding indebtedness, with the company's share amounting to $636.91 million[168] Cash Flow and Capital Expenditures - The company generated $8.87 million in cash from operating activities for the three months ended March 31, 2025, compared to $69.89 million for the same period in 2024[176][177] - Cash and cash equivalents increased by $58.56 million for the three months ended March 31, 2025, reaching $614.01 million[174] - The company used $33.88 million for investing activities in the three months ended March 31, 2025, primarily for real estate additions[178] - Financing activities generated $83.56 million in cash for the three months ended March 31, 2025, mainly from the sale of a 45.0% equity interest in 900 Third Avenue[180] Dividend and Shareholder Returns - The company suspended its regular quarterly dividend in September 2024 to strengthen its balance sheet and maintain financial flexibility[167] - The company has $15 million of capacity remaining under a $200 million stock repurchase program approved in November 2019[169] Interest and Expense Management - Interest and debt expense increased to $43,200,000 in Q1 2025 from $40,269,000 in Q1 2024, an increase of $2,931,000[155] - The variable rate debt amounted to $860 million with an interest rate of 6.27%, which would increase interest expense by $8.6 million if rates rose by 100 basis points[198] - The company aims to manage market risk through interest rate swap agreements to mitigate exposure to increases in rates[192] Other Financial Metrics - The company recorded a liability of $16.65 million related to guarantees provided for a joint venture, which is reflected in its consolidated balance sheets[173] - The company reported depreciation and amortization expenses of $58,879 for Q1 2025, compared to $61,114 in Q1 2024[184] - Interest rate caps for the variable rate debt are set at a strike rate of 3.50% through August 2025[196] - The weighted average shares outstanding increased to 218,005,447 in Q1 2025 from 217,105,686 in Q1 2024[191]