Paramount Announces Third Quarter 2016 Results

Paramount Group, Inc. (NYSE:PGRE) ("Paramount" or the "Company") filed its Quarterly Report on Form 10-Q for the quarter ended September 30, 2016 today and reported results for the quarter ended September 30, 2016.

Third Quarter Highlights:
  • Net loss attributable to common stockholders was $0.1 million, or $0.00 per diluted share, for the quarter ended September 30, 2016, compared to net income attributable to common stockholders of $1.1 million, or $0.01 per diluted share, for the quarter ended September 30, 2015.
  • Core Funds from Operations ("Core FFO") attributable to common stockholders was $44.1 million, or $0.20 per diluted share, for the quarter ended September 30, 2016, compared to $42.3 million, or $0.20 per diluted share, for the quarter ended September 30, 2015.
  • Leased 188,840 square feet at a weighted average initial rent of $60.91 per square foot, of which 142,623 square feet represents second generation space for which the Company achieved positive mark-to-markets of 29.7% on a GAAP basis and 6.1% on a cash basis.
  • On September 12, 2016, the Company entered into an agreement to acquire One Front Street, a 651,000 square foot Class A office building in San Francisco, California, for $521.0 million, or approximately $800 per square foot. The transaction, which is subject to customary closing conditions, is expected to close by the end of the fourth quarter of 2016.
  • On September 15, 2016, the Company's Board of Directors declared a regular quarterly cash dividend of $0.095 per share for the quarter ended September 30, 2016, which was paid on October 14, 2016.

Transactions Subsequent to Third Quarter:
  • On October 6, 2016, the Company completed an $850.0 million financing of 1301 Avenue of the Americas, a 1.8 million square foot Class A trophy office building in Midtown Manhattan. The five-year interest-only loan matures in October 2021, has two one-year extension options and has an initial weighted average interest rate of 2.77%, based on a $500.0 million tranche at a fixed rate of 3.05% and a $350.0 million tranche at a floating rate of LIBOR plus 180 basis points (2.36% at closing). The Company retained net proceeds of approximately $330.0 million after closing costs and the repayment of existing debt at 900 Third Avenue and Waterview, including swap breakage and defeasance costs. The Company plans to use the remaining proceeds to fund a portion of the acquisition of One Front Street.

Financial Results

Quarter Ended September 30, 2016

Net loss attributable to common stockholders was $0.1 million, or $0.00 per diluted share, for the quarter ended September 30, 2016, compared to net income of $1.1 million, or $0.01 per diluted share, for the quarter ended September 30, 2015.

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