Paramount Group, Inc. reported a net loss attributable to common stockholders of $46.3 million, or $0.21 per diluted share, for the fiscal year ending December 31, 2024. This marks a significant improvement from the previous year's net loss of $259.7 million, or $1.20 per diluted share. The 2024 results included $30.9 million in non-cash real estate impairment losses related to investments in unconsolidated joint ventures, while the prior year reflected $208.1 million in similar losses. Total revenues for 2024 increased to $757.5 million, up from $742.8 million in 2023, driven primarily by rental revenue growth.
The company’s portfolio consisted of 18 properties totaling 13.8 million square feet, with a vacancy rate of 18.0% as of December 31, 2024. During the year, Paramount leased 763,449 square feet, with a weighted average initial rent of $76.50 per square foot. However, same-store leased occupancy decreased to 84.8% from 90.1% in the previous year, primarily due to the expiration of significant leases. The company anticipates that approximately 868,700 square feet, or 12.7% of annualized rents, will expire in 2025, which could further impact occupancy and rental rates.
Strategically, Paramount Group has focused on enhancing its portfolio through disciplined acquisitions and property management. In January 2025, the company sold a 45% equity interest in 900 Third Avenue for $94 million, which will be used to strengthen its balance sheet. The company also modified its revolving credit facility, reducing commitments to $450 million and limiting borrowings to $200 million through mid-2025. This move aligns with its strategy to maintain financial flexibility amid challenging market conditions.
Looking ahead, Paramount Group's management remains cautious about the economic environment, particularly in its key markets of New York City and San Francisco, where elevated inflation and interest rates pose risks to occupancy and rental rates. The company has emphasized its commitment to enhancing stockholder value through increased cash flow from operations and proactive management of its properties. However, the ongoing trends in the office real estate sector, including telecommuting and flexible work arrangements, may continue to affect demand for office space, necessitating careful monitoring and strategic adjustments.
About Paramount Group, Inc.
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