Paramount Group (PGRE) Tops Q3 EPS by 12c, Revenues Beat; Lifts FY18 EPS Outlook

Paramount Group (NYSE: PGRE) reported Q3 EPS of $0.16, $0.12 better than the analyst estimate of $0.04. Revenue for the quarter came in at $192.6 million versus the consensus estimate of $191.93 million.

• Reported net income attributable to common stockholders of $37.5 million, or $0.16 per diluted share, for the quarter ended September 30, 2018, compared to a net loss of $10.2 million, or $0.04 per diluted share, for the quarter ended September 30, 2017. Net income attributable to common stockholders for the quarter ended September 30, 2018 includes $32.2 million, or $0.13 per diluted share, of gain on sale of real estate, net of “sting” taxes.
• Reported Core Funds from Operations (“Core FFO”) attributable to common stockholders of $57.7 million, or $0.24 per diluted share, for the quarter ended September 30, 2018, compared to $52.4 million, or $0.22 per diluted share, for the quarter ended September 30, 2017.
• Reported a 7.2% increase in Same Store Cash Net Operating Income (“NOI”) and a 11.1% increase in Same Store NOI in the quarter ended September 30, 2018, compared to the same period in the prior year.
• Completed the sale of two assets in its Washington, D.C. portfolio, 2099 Pennsylvania Avenue and 425 Eye Street, for an aggregate of $376.9 million, resulting in a gain of $35.6 million, net of $1.2 million in “sting” taxes.
• Updated its full year 2018 Earnings Guidance to reflect the earnings impact of the two Washington, D.C. asset sales in the third quarter, as follows:
• Estimated net income attributable to common stockholders is expected to be between $0.03 and $0.05 per diluted share, compared to its prior estimate of a net loss attributable to common stockholders of $0.14 to $0.10 per diluted share.
• Estimated Core FFO attributable to common stockholders is expected to be between $0.93 and $0.95 per diluted share, compared to its prior estimate of $0.93 to $0.97 per diluted share.
• Same Store Cash NOI and Same Store NOI is expected to be between 8.0% and 10.0%, compared to its prior estimate of 7.0% to 10.0%.
• Leased 203,143 square feet, of which the Company’s share was 127,194 square feet that was leased at a weighted average initial rent of $88.57 per square foot. Of the square footage leased, 101,850 square feet represented second generation space, for which the Company achieved a positive mark-to-market of 14.4% on a cash basis and 19.5% on a GAAP basis.
• Reported leased occupancy and same store leased occupancy of 96.4% at September 30, 2018, in-line with the leased occupancy reported at June 30, 2018.
• Repurchased an aggregate of 3,443,000 shares, or $50.0 million of our common stock, at a weighted average price of $14.53 per share, through October 31, 2018.
• Declared a third quarter cash dividend of $0.10 per common share on September 14, 2018, which was paid on October 15, 2018.

GUIDANCE:

Paramount Group sees FY2018 EPS of $0.03-$0.05, versus the consensus of $0.11.

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

You May Also Be Interested In

• ​Trump said he was unaware of his earnings from crypto
• Greenbrier Cos. (GBX) Reports In-Line Q3 EPS
• Rivian raises 2026 delivery outlook after Q2 results top guidance