Paramount (US:PGRE)2025-04-30 20:35Financial Performance - For the full year 2025, the estimated net loss attributable to common stockholders is projected to be between $85 million and $70 million[13]. - Estimated Core FFO per share for 2025 is expected to range from $0.51 to $0.57, with no prior guidance provided[13]. - Same Store NOI is projected to decrease by 9.0% to 13.0% for the year, indicating a challenging market environment[13]. - For the three months ended March 31, 2025, the company's share of Cash NOI was $83.7 million, down from $89.0 million in the same period last year, reflecting a 4.1% decline[14]. - The Same Store NOI for the three months ended March 31, 2025, decreased by 5.4% compared to the same period in 2024[14]. - The company reported a net loss per share of $0.05 for the three months ended March 31, 2025, compared to a profit of $0.05 in the same period last year[14]. - Total revenues for the three months ended March 31, 2025, were $187,019, a decrease of 0.5% compared to $188,877 for the same period in 2024[17]. - Rental revenue for the same period was $179,021, slightly down from $179,723 in the previous year, representing a decrease of 0.4%[18]. - Net loss attributable to common stockholders for the three months ended March 31, 2025, was $10,026, compared to a net income of $9,865 for the same period in 2024[17]. - The company reported operating expenses of $78,050 for the three months ended March 31, 2025, which is an increase of 8.2% compared to $71,740 in the same period last year[17]. - Net loss for the three months ended March 31, 2025, was $5,317,000 compared to a net income of $16,731,000 for the same period in 2024[19]. - Funds from Operations (FFO) attributable to common stockholders for Q1 2025 was $36,880,000, down 38.4% from $59,821,000 in Q1 2024[19]. - Core FFO attributable to common stockholders decreased to $37,891,000 in Q1 2025 from $47,938,000 in Q1 2024, representing a decline of 21.0%[20]. - PGRE's share of EBITDAre for Q1 2025 was $78,139,000, down 22.1% from $100,355,000 in Q1 2024[22]. - Net Operating Income (NOI) for Q1 2025 was $86,788,000, a decrease of 7.5% compared to $93,583,000 in Q1 2024[23]. - Cash NOI for Q1 2025 was $83,677,000, down 5.0% from $88,977,000 in Q1 2024[23]. - The company reported a significant increase in interest and debt expense, which rose to $45,440,000 in Q1 2025 from $42,787,000 in Q1 2024[22]. - The company reported a non-cash gain on extinguishment of IPO related tax liability of $15,437,000 in Q4 2024, which was not present in Q1 2025[22]. - The company reported a decrease in Same Store NOI of 5.4% for the three months ended March 31, 2025, totaling $87,339,000 compared to $92,369,000 in 2024[27]. - The company sold a 45.0% equity interest in 900 Third Avenue on January 17, 2025, which is reflected in the adjustments to prior period's NOI[28]. - Total revenues for Q1 2025 reached $106,319,000, representing an increase from $102,637,000 in Q1 2024, a growth of approximately 3.3% year-over-year[30]. - Net income for Q1 2025 was $12,546,000, compared to $14,887,000 in Q1 2024, indicating a decrease of about 15.7% year-over-year[30][32]. - Net operating income for Q1 2025 was $64,810,000, up from $68,164,000 in Q1 2024, reflecting a decline of approximately 4.9% year-over-year[30][32]. - Funds from operations (FFO) for Q1 2025 totaled $29,198,000, compared to $31,272,000 in Q1 2024, a decrease of about 6.6% year-over-year[30][32]. - The company reported a net loss of $9,042,000 for the three months ended March 31, 2025, reflecting challenges in the market[36]. Assets and Liabilities - Total assets increased to $7,947,478 as of March 31, 2025, up from $7,871,503 at the end of 2024, reflecting a growth of 1%[16]. - Cash and cash equivalents rose to $426,952, an increase of 13.8% from $375,056 as of December 31, 2024[16]. - Total liabilities decreased slightly to $3,846,547 from $3,862,006, a reduction of 0.4%[16]. - The company’s equity increased to $4,100,931 as of March 31, 2025, compared to $4,009,497 at the end of 2024, marking a growth of 2.3%[16]. - Total assets as of March 31, 2025, amounted to $4,117,917,000, with real estate net valued at $3,522,958,000[28]. - Total liabilities were reported at $2,397,078,000, with notes and mortgages payable net at $2,322,477,000[28]. - Paramount Group, Inc. equity stood at $856,295,000, while noncontrolling interests were $495,340,000, leading to total equity of $1,351,635,000[29]. - Total debt as of March 31, 2025, was $5,498,456,000, with PGRE's share of net debt at $3,093,470,000[40]. - The company's net debt to annualized adjusted EBITDAre ratio was 9.9x, indicating a slight increase from the previous period[41]. - The total market capitalization as of March 31, 2025, was $4,634,027,000[40]. - The company has a revolving credit facility with total debt to total assets ratio at 49.2%, well below the 60% threshold[44]. - Consolidated debt totals $3,610,580, with a weighted average interest rate of 4.44%[45]. - PGRE's share of total debt excluding non-core assets is $3,247,440[45]. Leasing and Occupancy - The company anticipates leasing activity of approximately 900,000 to 1,100,000 square feet for the year[13]. - The Same Store Leased percentage as of March 31, 2025, was 86.2%, an increase of 1.4% from December 31, 2024[15]. - The weighted average Same Store Leased percentage for New York was 87.4%, while for San Francisco it was 82.3% as of March 31, 2025[15]. - The total portfolio has a weighted average leased percentage of 83.2% and an occupied percentage of 80.5%[48]. - The New York portfolio's leased percentage is 87.4%, showing an increase from previous quarters[48]. - The San Francisco portfolio's leased percentage is 72.6%, reflecting a slight decrease compared to earlier figures[48]. - The office segment has a 90.0% ownership and a 91.7% occupancy rate at 1633 Broadway, generating an annualized rent of $176,692,000[51]. - The retail segment at 1301 Avenue of the Americas has a 100.0% occupancy rate, with an annualized rent of $191,538,000[51]. - The property at One Market Plaza has a 49.0% ownership, with a 90.7% occupancy rate and an annualized rent of $163,169,000[53]. - The company is focusing on market expansion and enhancing tenant diversity across its properties[54]. - As of March 31, 2025, PGRE's total square feet leased reached 283,874, with PGRE's share being 186,447 square feet[57]. - The total expiring leases for 2025 amount to 1,116,573 square feet, with an annualized rent of $70,619, or $94.61 per square foot[58]. - For 2026, total expiring leases are projected at 1,508,069 square feet, with an annualized rent of $89,096, equating to $89.59 per square foot[58]. - The percentage increase in straight-line rent for 2025 is 7.1%, compared to the prior straight-line rent[57]. - The average free rent period for new leases is 12.3 months, with an average of 1.0 month per annum[57]. - The company has a diversified tenant base, with legal services accounting for 21.9% of occupied square feet[58]. - The total square feet of month-to-month leases is 5,253, representing 0.1% of annualized rent[59]. - The remaining leases for 2026 total 5,334,341 square feet, with an annualized rent of $385,459, or 63.0% of total annualized rent[59]. Capital Expenditures - Total capital expenditures for the three months ended March 31, 2025, amounted to $48,004,000, with $40,293,000 attributed to New York and $7,696,000 to San Francisco[63]. - Capital expenditures to maintain assets for the three months ended March 31, 2025, were $12,047,000, compared to $10,944,000 for the same period in 2024[63]. - Second generation tenant improvements for the three months ended March 31, 2025, totaled $27,355,000, up from $24,621,000 in 2024[63]. - The total capital expenditures attributable to PGRE's share for the three months ended March 31, 2025, were $42,575,000[63]. - The total capital expenditures for redevelopment for the three months ended March 31, 2025, were $1,290,000[63]. Strategic Focus - The company plans to focus on expanding its real estate portfolio and enhancing operational efficiencies in the upcoming quarters[17]. - The company is focused on market expansion and redevelopment strategies, particularly in its non-core assets[36]. - Future outlook includes potential redevelopment opportunities for properties currently out-of-service[51].