Paramount Group Q3 net loss widens on merger related costs

Overview

• Paramount reports Q3 net loss of $28.9 mln, impacted by merger-related costs

• Core FFO for Q3 2025 declines to $31.5 mln from $40.5 mln in 2024

• Company to be acquired by Rithm Capital for $1.6 bln, expected Q4 2025 close

Outlook

• Paramount will not provide updated guidance due to pending merger with Rithm

Result Drivers

• LEASING ACTIVITY - Paramount leased 547,812 sq ft in Q3, increasing same store leased occupancy by 430 basis points

• REFINANCING - Co completed $900 mln refinancing of 1301 Avenue of the Americas, retaining $26 mln in proceeds

• MERGER COSTS - Q3 net loss includes $9 mln of transaction costs related to proposed merger with Rithm

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "hold" and no "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 $6.60, about 0.9% above its October 28 closing price of $6.54

Press Release:

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