Paramount (US:PGRE)2025-10-29 20:56Financial Performance - The company reported a net loss per share of $0.13 for the three months ended September 30, 2025, compared to a loss of $0.04 for the same period in 2024[17]. - Core FFO per share (diluted) decreased to $0.14 in Q3 2025 from $0.19 in Q3 2024, reflecting a decline of approximately 26.3%[17]. - PGRE's share of Adjusted EBITDAre was $69.78 million for Q3 2025, down from $82.88 million in Q3 2024, representing a decrease of 15.8%[17]. - Same Store Cash NOI decreased by 8.0% for the three months ended September 30, 2025, compared to the same period in 2024[17]. - Same Store NOI for the three months ended September 30, 2025, decreased by 12.0% compared to the same period in 2024[17]. - Total revenues for Q3 2025 were $172,959,000, a decrease of 11.2% compared to $194,899,000 in Q3 2024[22]. - Rental revenue for Q3 2025 was $164,687,000, down from $184,235,000 in Q3 2024, reflecting a decline of 10.6%[22]. - Net loss attributable to common stockholders for Q3 2025 was $28,947,000, compared to a loss of $9,688,000 in Q3 2024[22]. - Operating expenses for Q3 2025 were $79,392,000, compared to $80,316,000 in Q3 2024, showing a slight decrease of 1.2%[22]. - Depreciation and amortization expenses for Q3 2025 were $57,766,000, down from $60,071,000 in Q3 2024[22]. - The company reported a total equity of $4,076,288,000 as of September 30, 2025, compared to $4,102,398,000 in Q2 2025[20]. - The company reported a net operating income of $62,947 for the three months ended September 30, 2025, with total operating expenses of $49,250[40]. - The company reported a net loss of $1,319,000 for the three months ended September 30, 2025, with PGRE's share of net income at $(1,391,000)[47]. Acquisition and Transactions - The company entered into an agreement to be acquired by Rithm Capital Corp. for a total cash consideration of approximately $1.6 billion, with the transaction expected to close in Q4 2025[12]. - The company will not be providing an update to previously issued guidance due to the pending acquisition transaction[12]. - The company sold a 45.0% equity interest in 900 Third Avenue on January 17, 2025, and a 25.0% equity interest in One Front Street on May 5, 2025[38]. - The lenders completed the sale of Market Center through a deed-in-lieu of foreclosure on May 30, 2025[45]. - The company terminated its revolving credit facility on May 5, 2025, following the sale of a 25.0% interest in One Front Street[53]. Assets and Liabilities - Total assets as of September 30, 2025, were $7,974,495,000, slightly up from $7,958,713,000 at the end of Q2 2025[20]. - Total liabilities increased to $3,898,207,000 as of September 30, 2025, from $3,856,315,000 in Q2 2025[20]. - Cash and cash equivalents decreased to $330,207,000 from $439,905,000 in Q2 2025, a decline of 25%[20]. - Total assets as of September 30, 2025, amounted to $4,599,385, an increase from $3,745,243 as of December 31, 2024[38][39]. - Total liabilities as of September 30, 2025, were $2,410,119, compared to $2,393,608 as of December 31, 2024[38][39]. - The company has a total equity of $255,972,000 as of September 30, 2025, compared to $110,110,000 as of December 31, 2024[46]. - The company's consolidated debt stood at $3,732,050,000, while total debt reached $5,153,870,000 as of September 30, 2025[53]. Cash Flow and Expenses - Cash general and administrative expenses increased to $13,691,000 in Q3 2025 from $12,299,000 in Q3 2024[24]. - Interest and debt expense for Q3 2025 was $44,419,000, slightly up from $43,805,000 in Q3 2024[22]. - Total operating expenses for the nine months ended September 30, 2025, were $134,279,000, representing a 41.2% of total revenues[42]. - Total capital expenditures for the three months ended September 30, 2025, amounted to $51,223,000, with $39,695,000 attributed to New York and $11,519,000 to San Francisco[67]. - For the nine months ended September 30, 2025, total capital expenditures reached $148,430,000, with $116,902,000 in New York and $31,217,000 in San Francisco[68]. Performance Metrics - Funds from operations (FFO) attributable to common stockholders for Q3 2025 was $17,112,000, a decrease of 57.3% from $40,078,000 in Q3 2024[25]. - Core FFO attributable to common stockholders for Q3 2025 was $31,509,000, down 22.3% from $40,523,000 in Q3 2024[26]. - The company reported a FAD attributable to common stockholders of $(5,331,000) for Q3 2025, compared to $20,034,000 in Q3 2024[26]. - The company experienced a significant adjustment to equity in earnings of unconsolidated joint ventures, with a loss of $(93,140,000) for the nine months ended September 30, 2025[50]. - Funds from Operations (FFO) is a key performance measure, defined as net income adjusted to exclude depreciation, amortization, and certain gains or losses, providing a clearer view of operating performance[75]. - Core Funds from Operations (Core FFO) further adjusts FFO by excluding transaction-related costs and other non-core items, enhancing comparability across periods[76]. Occupancy and Leasing - The weighted average leased percentage for the portfolio increased to 89.7% as of September 30, 2025, up from 85.4% as of June 30, 2025[18]. - Total square footage for the portfolio is approximately 8,679,932 square feet[57]. - Total square feet leased for the three months ended September 30, 2025, was 547,812, with PGRE's share being 481,246[61]. - The total square feet leased for the nine months ended September 30, 2025, was 1,236,396, with PGRE's share being 923,314[62]. - The total market capitalization as of September 30, 2025, was $4,933,661,000[53]. Market and Tenant Information - Key tenants include Allianz, Morgan Stanley, Visa, and JPMorgan Chase, indicating a strong tenant mix across the portfolio[57][59]. - The office space at 1633 Broadway has an occupancy rate of 91.7% and an annualized rent of $177,931,000, translating to $85.64 per square foot[57]. - The retail space at 1301 Avenue of the Americas has a 100% occupancy rate, with an annualized rent of $4,560,000 and $186.89 per square foot[57]. - The office space at One Market Plaza has a 70.7% occupancy rate, with an annualized rent of $130,517,000 and $121.06 per square foot[59]. - The retail space at 55 Second Street has a 100% occupancy rate, generating an annualized rent of $718,000 at $79.33 per square foot[59].