Paramount Group (PGRE) Misses Q2 EPS by 5c, Revenues Miss

Paramount Group (NYSE: PGRE) reported Q2 EPS of ($0.04), $0.05 worse than the analyst estimate of $0.01. Revenue for the quarter came in at $171.12 million versus the consensus estimate of $181.57 million.

Second Quarter Highlights:

Results of Operations:

• Reported net loss attributable to common stockholders of $6.3 million, or $0.03 per diluted share, for the quarter ended June 30, 2020, compared to net income attributable to common stockholders of $2.5 million, or $0.01 per diluted share, for the quarter ended June 30, 2019.
• Reported Core Funds from Operations (“Core FFO”) attributable to common stockholders of $50.1 million, or $0.23 per diluted share, for the quarter ended June 30, 2020, compared to $53.2 million, or $0.23 per diluted share, for the quarter ended June 30, 2019.
• Net loss attributable to common stockholders and Core FFO attributable to common stockholders for the quarter ended June 30, 2020, include (i) $7.0 million of non-cash write-offs, primarily for straight-line rent receivables, and (ii) $1.8 million of reserves for uncollectible accounts receivable. These amounts reduced net income attributable to common stockholders and Core FFO attributable to common stockholders for the quarter ended June 30, 2020 by an aggregate of $8.8 million, or $0.04 per diluted share.
• Reported a 4.1% decrease in Same Store Cash Net Operating Income (“NOI”) and a 0.9% increase in Same Store NOI in the quarter ended June 30, 2020, compared to the same period in the prior year.
• Leased 300,570 square feet, of which the Company’s share was 169,898 square feet that was leased at a weighted average initial rent of $93.47 per square foot. Of the square footage leased, 159,548 square feet represented second generation space, for which the Company achieved a positive mark-to-market of 24.2% on a cash basis and 19.2% on a GAAP basis.
• Reported portfolio-wide rent collections of 96.4% in the second quarter, including 97.8% from office tenants and 57.6% from all other tenants, including retail.

Guidance

The Company had previously provided its 2020 guidance on February 12, 2020, prior to the COVID-19 pandemic, which has materially impacted the U.S. and global economy. The Company withdrew its previously issued 2020 guidance on April 29, 2020 and is not providing an updated outlook at this time given the continued economic uncertainty and rapidly-evolving circumstances related to the COVID-19 pandemic.

For earnings history and earnings-related data on Paramount Group (PGRE) click here.

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