Paramount Group Inc (PGRE) Reports Q3 2023 Earnings, Net Loss Widens
Paramount Group Inc (NYSE:PGRE) reported a net loss attributable to common stockholders of $8.4 million for Q3 2023, compared to a net loss of $1.5 million in Q3 2022.
Core Funds from Operations (Core FFO) attributable to common stockholders was $47.8 million, down from $54.2 million in the same quarter last year.
Same Store Cash Net Operating Income (NOI) decreased by 7.1% and Same Store NOI decreased by 10.3% compared to the same period in the prior year.
The company leased 298,259 square feet at a weighted average initial rent of $75.65 per square foot.
Paramount Group Inc (NYSE:PGRE) released its Q3 2023 earnings report on November 1, 2023. The company reported a net loss attributable to common stockholders of $8.4 million, or $0.04 per diluted share, for the quarter ended September 30, 2023. This is a significant increase from the net loss of $1.5 million, or $0.01 per diluted share, reported for the same quarter in 2022.
Financial Performance
Core Funds from Operations (Core FFO) attributable to common stockholders was $47.8 million, or $0.22 per diluted share, for the quarter ended September 30, 2023. This is a decrease from the $54.2 million, or $0.24 per diluted share, reported for the same quarter in 2022. The company also reported a 7.1% decrease in Same Store Cash Net Operating Income (NOI) and a 10.3% decrease in Same Store NOI compared to the same period in the prior year.
For the nine months ended September 30, 2023, the net loss attributable to common stockholders was $54.2 million, or $0.25 per diluted share, compared to net income attributable to common stockholders of $1.5 million, or $0.01 per diluted share, for the same period in 2022.
Leasing Activity and Occupancy
During the quarter, Paramount Group Inc (NYSE:PGRE) leased 298,259 square feet, of which the company's share was 227,082 square feet that was leased at a weighted average initial rent of $75.65 per square foot. This leasing activity, offset by lease expirations in the quarter, decreased leased occupancy and same store leased occupancy by 150 basis points to 88.1% at September 30, 2023 from 89.6% at June 30, 2023.
Outlook
The company has updated and narrowed its full year 2023 Earnings Guidance. The estimated net loss attributable to common stockholders is expected to be between $0.33 and $0.31 per diluted share, compared to its prior estimate of $0.28 and $0.24 per diluted share. The estimated Core FFO attributable to common stockholders is expected to be between $0.85 and $0.87 per diluted share, compared to its prior estimate of $0.84 and $0.88 per diluted share.
Explore the complete 8-K earnings release (here) from Paramount Group Inc for further details.
This article first appeared on GuruFocus.
