Paramount Group Inc (PGRE, Financial) 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 (PGRE, Financial) 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.
