Office-focused REIT Paramount's Q2 core FFO falls

Paramount

30/07/2025 21:57

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    Overview
  
    * Paramount Group Q2 net loss widens to $19.8 mln, impacted by severance costs
    * Core FFO for Q2 falls to $36.9 mln from $43.4 mln yr/yr
    * The REIT, which operates and manages office properties, raises 2025 Core FFO guidance

    
    Outlook
  
    * Paramount raises 2025 Core FFO guidance to $0.55-$0.59 per share
    * Company expects 2025 net loss per share of $0.37-$0.33
    * Higher fee income and lower expenses boost 2025 Core FFO outlook

    
    Result Drivers
  
    * LEASE EXPIRATIONS - Scheduled expiration of Google’s lease at One Market Plaza decreased occupancy rates
    * SEVERANCE COSTS - Net loss impacted by $7.5 mln in expenses related to equity awards and severance payments
    * PORTFOLIO OPERATIONS - Improved operations contribute to raised full-year Core FFO guidance

    
    Key Details
  
                               
                               
 Metric    Beat/Mis  Actual    Consensu
           s                   s
                               Estimate
                               
                               
 Q2 EPS              -$0.09     
 Q2 Net              -$19.80    
 Income              mln       
 Q2 Core             $36.90     
 FFO                 mln       
 Q2 FFO              $27 mln    
    
    Analyst Coverage
  
    * The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and 2 "sell" or "strong sell"
    * The average consensus recommendation for the commercial reits peer group is "buy."
    * Wall Street's median 12-month price target for Paramount Group Inc is $5.75, about 8% below its July 29 closing price of $6.21

    Press Release:  ID:nBw7hqxz1a 

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)