Paramount Group Reports $19.8 Million Net Loss and Revenue Decline in Q2 2025

Paramount Group, Inc. reported a net loss attributable to common stockholders of $19.8 million, or $0.09 per diluted share, for the three months ended June 30, 2025, compared to a loss of $7.8 million, or $0.04 per diluted share, in the same period last year. For the six months ended June 30, 2025, the company experienced a net loss of $29.8 million, or $0.14 per diluted share, contrasting with a net income of $2.0 million, or $0.01 per diluted share, for the same period in 2024. Total revenues for the second quarter were $177.0 million, down from $187.4 million year-over-year, while revenues for the first half of 2025 totaled $364.1 million, a decrease from $376.3 million in 2024.

The decline in revenue was primarily driven by a decrease in rental income, which fell to $168.0 million in the second quarter from $179.7 million a year earlier. The company attributed this drop to lower occupancy rates and lease expirations, particularly noting the impact of Google’s lease expiration at One Market Plaza in San Francisco. Additionally, general and administrative expenses rose significantly, increasing to $24.3 million in the second quarter from $16.6 million in the prior year, largely due to severance costs and the acceleration of equity awards.

In terms of operational metrics, Paramount Group leased 404,710 square feet during the second quarter, with a weighted average initial rent of $91.93 per square foot. The company reported a same-store leased occupancy rate of 85.4% as of June 30, 2025, down from 86.2% at the end of the previous quarter. The decrease in occupancy was particularly pronounced in San Francisco, where the rate fell to 75.1% from 82.3% due to the aforementioned lease expirations.

Strategically, Paramount Group completed significant transactions during the reporting period, including the sale of a 45% equity interest in 900 Third Avenue and a 25% interest in One Front Street, generating net proceeds of $94 million and $11.5 million, respectively. The company also terminated its revolving credit facility following these sales, which had no outstanding balance at the time. Looking ahead, Paramount Group anticipates that its existing cash balances and cash flow from operations will provide adequate liquidity for the next 12 months, although it remains cautious about potential market conditions and their impact on future performance.