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Dec 31, 2019
Paramount Q4 2019 Earnings Report
Paramount Group reported a net loss for Q4 2019, but Core FFO remained strong. The company completed a major refinancing and acquisition, and leased a significant amount of space.
Key Takeaways
Paramount Group reported a net loss attributable to common stockholders of $50.1 million, or $0.22 per diluted share, for the quarter ended December 31, 2019. Core Funds from Operations (FFO) attributable to common stockholders was $58.3 million, or $0.26 per diluted share, for the same period. The company completed a $1.25 billion refinancing of 1633 Broadway and acquired Market Center in San Francisco through a joint venture.
Net loss attributable to common stockholders was $50.1 million, or $0.22 per diluted share.
Core FFO attributable to common stockholders was $58.3 million, or $0.26 per diluted share.
Same Store Cash NOI increased by 5.9%.
Leased 290,284 square feet, with the Company’s share being 164,744 square feet at a weighted average initial rent of $86.23 per square foot.
Forward Guidance
The Company is providing its Estimated Core FFO Guidance for the full year of 2020, which is reconciled below to estimated net income attributable to common stockholders per diluted share in accordance with GAAP. The Company estimates that net income attributable to common stockholders will be between $0.02 and $0.08 per diluted share. The estimated net income attributable to common stockholders per diluted share is not a projection and is being provided solely to satisfy the disclosure requirements of the Company estimates 2020 Core FFO to be between $1.00 and $1.06 per diluted share.
Positive Outlook
- increase in Same Store Cash NOI of 3.8% to 4.8%, resulting in an incremental $0.06 per diluted share
- increase in Cash NOI of $0.04 per diluted share from acquisitions (Market Center, 55 Second Street and 111 Sutter Street), net of dispositions (Liberty Place) that closed during 2019
- decrease in general and administrative expenses of $0.01 per diluted share
- expects to realize a $0.02 per diluted share benefit due to a lower number of weighted average shares and units outstanding, resulting from the 7.2 million common shares that were repurchased during 2019.
Challenges Ahead
- decrease in non-cash straight-line rent and amortization of above and below-market lease revenue, net of $0.03 per diluted share
Historical Earnings Impact
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Avg. Return Before/After Earnings
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