PGRE Earnings Prediction
The chart below shows how PGRE performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PGRE sees a +1.59% change in stock price 10 days leading up to the earnings, and a -0.89% change 10 days following the report. On the earnings day itself, the stock moves by -0.14%. This data can give you a slight idea of what to expect for the next quarter's release.
PGRE Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
186.27M
-3.22%
-4.43%
Gross Margin
58.65%
-2.17%
-0.24%
Operating Margin
19.45%
21.33%
0.15%
Net Margin
-25.80%
-81.73%
1094.44%
EPS
-0.18
-81.05%
350.00%
No Data Available
PGRE Earnings Analysis
Paramount Group Inc Corporation (PGRE.N) Earnings Conference Call
Positive
Core FFO Performance: Core FFO of $0.19 per share for Q4 2024, totaling $0.80 per share for the year, at the high end of guidance.
Positive FFO Guidance: 2025 core FFO guidance set between $0.51 and $0.57 per share, indicating a positive outlook for the upcoming year.
Leasing Performance Improvement: Leased approximately 109,000 square feet in Q4, totaling 763,500 square feet for the year, which is 3% ahead of last year.
Tenant Demand in Key Sectors: Strong interest from tenants in financial services and legal sectors, reaffirming the appeal of high-quality, strategically located spaces.
Tenant Satisfaction Enhancement: The Paramount Club is enhancing tenant satisfaction and retention, proving to be a significant differentiator in the market.
Leasing Activity Surge: In San Francisco, leasing activity was over 40% higher compared to last year, indicating market improvement.
Property Sale and Balance Sheet Strengthening: Closed the sale of a 45% interest in 900 Third Avenue, raising approximately $95 million, strengthening the balance sheet.
Sustainability Excellence Recognition: Achieved a GRESB five-star rating for the sixth consecutive year, demonstrating commitment to sustainability and environmental stewardship.
Record Leasing Activity: Midtown's fourth-quarter leasing activity marked the highest quarterly total since Q4 2019, exceeding the five-year average by 73%.
Lease Pipeline Overview: Current pipeline includes approximately 350,000 square feet of leases out, with advanced negotiations for over 200,000 square feet.
Negative
FFO Guidance Decline: Core FFO for Q4 2024 was $0.19 per share, with a full-year total of $0.80 per share, but guidance for 2025 shows a significant decrease to between $0.51 and $0.57 per share, indicating a $0.26 drop from the previous year.
Same-Store Cash NOI Decline: Same-store cash NOI growth was negative 1.1% for the full year, with Q4 showing a flat growth of negative 0.1%, reflecting ongoing challenges in revenue generation.
Real Estate Impairment Loss: The company recorded an $87.2 million non-cash real estate impairment loss in Q4, with a significant portion impacting their financials despite not affecting FFO directly.
Leasing Activity Shortfall: Leasing activity in Q4 did not meet revised targets, particularly in New York, where the company had anticipated higher performance but fell short, indicating potential weaknesses in market demand.
Lease Expiration Concerns: The lease expiration profile in San Francisco is concerning, with approximately 29% expiring in 2025, including significant leases from major tenants like Google and JPMorgan, which could lead to increased vacancy rates.
Negative Same-Store Growth: The company expects same-store growth to remain negative in 2025, with projections indicating a decline between negative 11% and negative 7% on a cash basis, driven by scheduled lease expirations.
Occupancy Rate Challenges: Despite a strong pipeline, the company anticipates year-end same-store occupancy rates to remain flat, with expectations of 83.9% to 85.9%, indicating potential struggles in maintaining occupancy levels.
PGRE FAQs
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PGRE Earning Call Sentiment
Paramount Group, Inc. (NYSE:PGRE) Q4 2024 Earnings Call Transcript
PGRE.N
-0.7%Positive
The earnings call presented mixed signals. Positive aspects include raised FFO guidance, successful asset sales, and improved lease occupancy. However, significant challenges remain, such as the $87.2 million impairment loss and decreased 2025 FFO guidance. The Q&A revealed uncertainties, especially regarding lease expirations and deal closures. The market's reaction will likely be neutral, given the balance of positive and negative elements and the absence of a clear catalyst for strong movement.
