Paramount Group (PGRE) Q1 2025 earnings summary

Executive summary

• Core FFO for Q1 2025 was $0.17 per share ($37.9 million), down from $0.22 per share in Q1 2024, but exceeded consensus by $0.01, with strong leasing momentum and 284,000 sq ft executed, the best first quarter since 2019.

• Reported net loss attributable to common stockholders was $10.0 million ($0.05 per share) for Q1 2025, compared to net income of $9.9 million in Q1 2024, which included a $14.1 million non-cash gain.

• Owns and operates high-quality, Class A office properties in New York and San Francisco, with 86.2% same store leased as of March 31, 2025.

• Portfolio totals $7.5 billion in assets under management across 18 assets and 13.8 million sq ft, with a diversified, high-credit tenant base.

• Leasing activity was robust in New York, highlighted by a 179,000 sq ft expansion by Kirkland & Ellis at 900 Third Avenue, and AI-based tenants drove 20 deals totaling over 275,000 sq ft in San Francisco.

Financial highlights

• FFO attributable to common stockholders for Q1 2025 was $36.9 million ($0.17 per share), down from $59.8 million ($0.28 per share) in Q1 2024.

• Same-store NOI decreased 5.4% year-over-year, with New York down 13.0% and San Francisco up 13.7%; same-store cash NOI decreased 4.1%.

• Total revenues for Q1 2025 were $187.0 million, nearly flat year-over-year.

• Weighted average starting rents for new leases were $76.52 per sq ft, with a weighted average lease term of 12.9 years.

• Net loss margin for Q1 2025 was (5.4)%.

Outlook and guidance

• 2025 Core FFO guidance reaffirmed at $0.51–$0.57 per share; full year Cash NOI guidance midpoint is $299 million.

• Leasing guidance for 2025 increased to 900,000–1.1 million sq ft, up 11% at midpoint.

• Same-store leased occupancy guidance raised to 84.4%–86.4%, a 50 bps increase at midpoint.

• Management expects existing cash, operations, and credit facility to provide adequate liquidity for the next 12 months.

• Dividend remains suspended since September 2024 to preserve flexibility; future dividends subject to board discretion.