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Jun 30, 2023
Paramount Q2 2023 Earnings Report
Paramount Group's results for the second quarter of 2023 were announced, revealing a net loss attributable to common stockholders.
Key Takeaways
Paramount Group reported a net loss of $47.5 million, or $0.22 per diluted share, for the second quarter of 2023, compared to a net loss of $0.4 million, or $0.00 per diluted share, for the same period in 2022. Core FFO attributable to common stockholders was $38.7 million, or $0.18 per diluted share, compared to $53.6 million, or $0.24 per diluted share in the prior year. The company updated its full-year 2023 earnings guidance, expecting a net loss between $0.28 and $0.24 per diluted share and Core FFO between $0.84 and $0.88 per diluted share.
Net loss attributable to common stockholders was $47.5 million, or $0.22 per diluted share.
Core FFO attributable to common stockholders was $38.7 million, or $0.18 per diluted share.
Same Store NOI decreased by 5.0% and Same Store Cash NOI decreased by 4.7%.
Leased 71,847 square feet, with the Company's share being 57,404 square feet at a weighted average initial rent of $78.14 per square foot.
Forward Guidance
Paramount Group updated its full year 2023 earnings guidance, expecting a net loss between $0.28 and $0.24 per diluted share and Core FFO between $0.84 and $0.88 per diluted share.
Positive Outlook
- Termination income of $0.02 per diluted share in connection with a tenant’s lease termination at 1633 Broadway partially offset the decrease in estimated Core FFO.
Challenges Ahead
- Estimated net loss attributable to common stockholders is expected to be between $0.28 and $0.24 per diluted share, compared to its prior estimate of $0.11 and $0.07 per diluted share.
- Estimated Core FFO attributable to common stockholders is expected to be between $0.84 and $0.88 per diluted share, compared to its prior estimate of $0.90 and $0.94 per diluted share.
- Non-cash straight-line rent receivable write-offs aggregating $0.06 per diluted share related to the terminated SVB Securities lease and the surrendered JPMorgan space.
- Lower GAAP rental revenue in the second half of the year aggregating $0.02 per diluted share related to the terminated SVB Securities lease and the surrendered JPMorgan space.
- Share of a non-cash real estate impairment loss related to an unconsolidated joint venture of $0.11 per diluted share.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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