Paramount (US:PGRE)2025-10-29 20:47Financial Performance - Net loss attributable to common stockholders for the three months ended September 30, 2025, was $28,947,000, or $0.13 per diluted share, compared to a net loss of $9,688,000, or $0.04 per diluted share, for the same period in 2024[175]. - Funds from Operations (FFO) attributable to common stockholders was $17,112,000, or $0.08 per diluted share, for the three months ended September 30, 2025, down from $40,078,000, or $0.18 per diluted share, in 2024[176]. - Core Funds from Operations (Core FFO) attributable to common stockholders was $31,509,000, or $0.14 per diluted share, for the three months ended September 30, 2025, compared to $40,523,000, or $0.19 per diluted share, for the same period in 2024[177]. - Net loss attributable to common stockholders for the nine months ended September 30, 2025, was $58,758,000, or $0.27 per diluted share, compared to a loss of $7,642,000, or $0.04 per diluted share, for the same period in 2024[180]. - FFO attributable to common stockholders decreased to $80,982,000, or $0.37 per diluted share, for the nine months ended September 30, 2025, down from $142,554,000, or $0.66 per diluted share, in 2024[181]. - Core FFO attributable to common stockholders was $106,327,000, or $0.48 per diluted share, for the nine months ended September 30, 2025, compared to $131,889,000, or $0.61 per diluted share, for the same period in 2024[182]. - Total revenues for the three months ended September 30, 2025, were $172,959,000, a decrease of $21,940,000 from $194,899,000 in the same period of 2024[189]. - Rental revenue decreased by $19,548,000 for the three months ended September 30, 2025, primarily due to lower average occupancy at key properties[190]. - Total revenues for the nine months ended September 30, 2025, were $537,023,000, a decrease of $34,161,000 compared to $571,184,000 for the same period in 2024[205]. - Rental revenue decreased by $31,895,000, primarily due to lower average occupancy at key properties[206]. Property Management - As of September 30, 2025, the company owns and/or manages a portfolio of 17 properties totaling 13.1 million square feet[148]. - Total square feet leased in the three months ended September 30, 2025, was 547,812, with a pro rata share of 481,246 square feet leased at a weighted average initial rent of $82.45 per square foot[160]. - Same store leased occupancy increased by 430 basis points to 89.7% as of September 30, 2025, compared to 85.4% as of June 30, 2025[160]. - In the New York portfolio, 463,575 square feet were leased at a weighted average initial rent of $81.08 per square foot, increasing same store leased occupancy by 570 basis points to 93.8%[162]. - In the San Francisco portfolio, 84,237 square feet were leased at a weighted average initial rent of $97.20 per square foot, resulting in a decrease in same store leased occupancy by 70 basis points to 74.4%[164]. - For second generation space leased in the three months, rental rates increased by 13.9% on a GAAP basis and 6.4% on a cash basis[161]. - Total square feet leased in the nine months ended September 30, 2025, was 1,236,396, with a pro rata share of 923,314 square feet leased at a weighted average initial rent of $83.87 per square foot[169]. Debt and Liquidity - The company has approximately 93.2% ownership of the Operating Partnership as of September 30, 2025[147]. - The company experienced a default on a $416.5 million mortgage loan related to the Market Center joint venture due to insufficient cash flows[154]. - The company terminated its revolving credit facility on May 5, 2025, with no outstanding balance at termination[152]. - Liquidity as of September 30, 2025, was $654,357,000, consisting of $330,207,000 in cash and cash equivalents and $324,150,000 in restricted cash[218]. - As of September 30, 2025, the company's outstanding consolidated debt totaled $3.73 billion, with significant loans maturing in June 2026 and October 2026[221]. - The unconsolidated joint ventures had $1.42 billion of outstanding indebtedness as of September 30, 2025, with the company's share amounting to $362.18 million[225]. - The company generated $83.04 million from operating activities for the nine months ended September 30, 2025, compared to $176.57 million for the same period in 2024[234]. - Financing activities generated $125.04 million in cash for the nine months ended September 30, 2025, mainly from proceeds related to refinancing and equity interest sales[239]. Market Risks - The company has a significant concentration of properties in New York City and San Francisco, which poses various market risks[135]. - The company aims to manage market risk through interest rate swap agreements to mitigate exposure to increases in rates[254]. - A 100 basis point increase in variable rates would result in an increase in annual net income of $969 thousand, with no effect on per diluted share[258]. Corporate Actions - The company entered into a Merger Agreement on September 17, 2025, with a cash consideration of $6.60 per share for the Company Merger[141]. - The company has a stock repurchase program with a capacity of $15 million remaining under a $200 million authorization, but no shares were repurchased in the nine months ended September 30, 2025[155]. - The company suspended its regular quarterly dividend in September 2024 to strengthen its balance sheet and maintain financial flexibility[223]. - The SEC is conducting an investigation into the adequacy of the company's disclosures regarding executive compensation and related matters[229]. Non-Operating Income - Income from unconsolidated joint ventures was $2,620,000 for the nine months ended September 30, 2025, an increase of $5,718,000 compared to a loss of $3,098,000 in 2024[211]. - The NOI from unconsolidated joint ventures for the nine months ended September 30, 2025, was $14,706,000, compared to $16,611,000 for the same period in 2024, representing a decline of about 11.4%[246]. - The company reported a total fee income of $13,369,000 for the nine months ended September 30, 2025, compared to $17,328,000 for the same period in 2024, indicating a decrease of approximately 22.5%[246]. Adjustments and Metrics - The company emphasized the importance of Same Store NOI metrics, which exclude certain non-cash items and are used to measure the operating performance of properties owned in both current and prior reporting periods[247]. - Paramount's share of Same Store NOI for the nine months ended September 30, 2025, was $248,456, reflecting a decrease of 7.3% from $268,032 in the same period of 2024[250]. - The company’s FFO and Core FFO are presented as supplemental financial measures to assist investors in comparing results across periods[251]. - FFO is defined as net income or loss adjusted to exclude depreciation and amortization from real estate assets, among other items[251].