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Paramount Group, Inc. (PGRE) is a fully-integrated real estate investment trust (REIT) specializing in owning, operating, managing, acquiring, and redeveloping high-quality, Class A office properties. The company focuses its operations in central business district submarkets of New York City and San Francisco. PGRE generates revenue primarily through rental income and management fees from its office properties.
- Rental Revenue - Provides income from leasing Class A office spaces in premium locations, contributing the majority of the company's revenue.
- Fee and Other Income - Includes management fees and income from consolidated joint ventures, derived from services related to property operations and management.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Albert Behler ExecutiveBoard | Chairman, Chief Executive Officer, and President | Member of The Real Estate Roundtable; Member of the Board of Governors of the Real Estate Board of New York; Member of the American Council on Germany’s Business Advisory Committee; Member of the Board of Directors of Citymeals-on-Wheels | Albert Behler has been serving as the Chairman, Chief Executive Officer, and President of PGRE since 2014, after initially joining the company as President and Chief Executive Officer in October 1991. | View Report → |
Gage Johnson ExecutiveBoard | Senior Vice President, General Counsel, and Secretary | Vice Chairman of The National Aquarium; Treasurer of The National Aquarium; Member of the Executive Committee of the Board of Directors of The National Aquarium | Gage Johnson has been serving as the Senior Vice President, General Counsel, and Secretary at PGRE since 2014, where he leads the company’s legal and sustainability initiatives. Previously, he was General Counsel at PGRE from May 2009 and has held key legal roles at Citi Property Investors, Morgan Stanley Real Estate, and Lend Lease Real Estate, in addition to serving as an attorney at Paul Hastings LLP. | |
Ermelinda Berberi Executive | Senior Vice President and Chief Accounting Officer | Ermelinda Berberi has served as the Senior Vice President and Chief Accounting Officer at PGRE since April 2017 ; she previously held the role of Senior Vice President, Finance starting in April 2016 and has over 12 years of experience at Deloitte & Touche LLP. | ||
Peter Brindley Executive | Executive Vice President, Head of Real Estate | Treasurer, Board of Directors, Avenue of the Americas Association; Member, Real Estate Board of New York | Peter Brindley has been the Executive Vice President, Head of Real Estate at PGRE since February 2021. He previously served as Executive Vice President, Leasing beginning in December 2017 and as Senior Vice President, Leasing from September 2015. | |
Wilbur Paes Executive | Chief Operating Officer, Chief Financial Officer, and Treasurer | Wilbur Paes is the Chief Operating Officer, Chief Financial Officer, and Treasurer of PGRE since February 2021, where he oversees the company’s operational and financial functions. Previously, he served as Executive Vice President, Chief Financial Officer, and Treasurer from March 2016 and as Senior Vice President and Chief Accounting Officer starting in 2014. | ||
Greg Wright Board | Director | Chief Investment Officer at Digital Realty Trust, Inc. | Greg Wright has served as a Director at PGRE since 2020 and is the Chair of the Compensation Committee. He is also known for his role as Chief Investment Officer at Digital Realty Trust, Inc. since January 2019. | |
Hitoshi Saito Board | Director | Outside Director and Chairman of the Advisory Committee at Tokyo Gas Company Ltd (since 2019) ; Chairman of the Nomination Committee at Tokyo Gas Company Ltd (since 2021) ; Outside Director at Globeship Corporation (since July 2019) | Hitoshi Saito has been a Director on the PGRE Board since 2022. Previously, he served as an Advisory Board Member at PGRE from 2020 to 2022 and held senior leadership roles at companies such as Mitsui Fudosan and Tokyo Gas. | |
Karin Klein Board | Director | Founding Partner at Bloomberg Beta; Board Director at Regency Centers Corporation | Karin Klein is a Director on the Board of Directors at PGRE since March 2016 and has an extensive background in technology, venture capital, and leadership roles including her founding partner role at Bloomberg Beta and previous positions at Bloomberg L.P. and SoftBank. | |
Katharina Otto-Bernstein Board | Director | President of Film Manufacturers Inc. since 1992; Principal Owner of ECE Group; Board Member at CURA Vermögensverwaltung; Chair of the Dean's Council of the Columbia University School of the Arts; Board Member of the Metropolitan Opera; Member of the International Council of the Guggenheim Museum | Katharina Otto-Bernstein has served as a Director on the Board of Directors at PGRE since 2014. She is an award-winning writer and filmmaker who has also been the President of Film Manufacturers Inc. since 1992. | |
Mark Patterson Board | Director | President of MRP Holdings LLC; Advisory Director at Investcorp, Inc.; Senior Advisor at Rockefeller Capital Management; Advisory Director at Energy Impact Partners; Board Member at UDR, Inc.; Board Member at Digital Realty Trust, Inc.; Chairman of the Board at Americold Realty Trust, Inc. | Mark Patterson has served as a Director at PGRE since 2018 and is a member of the Nominating and Corporate Governance Committee. He brings extensive experience from diverse leadership roles in real estate and financial advisory. | |
Martin Bussmann Board | Director | Martin Bussmann has been a Director at PGRE since March 2016, serving as the Lead Independent Director and Chair of the Nominating and Corporate Governance Committee. He has extensive expertise in finance and corporate governance demonstrated by his leadership and committee roles at PGRE. | ||
Paula Sutter Board | Director, Chair of Audit Committee | CEO of Paula Sutter LLC; Board Member at ThredUP, Inc.; Executive Chairwoman at Inflection Point Acquisition Corp | Paula Sutter has served on the Board of Directors at PGRE since July 2022 and holds the position of Chair of the Audit Committee. She brings extensive experience in the retail and fashion industries, currently leading Paula Sutter LLC as CEO and serving on boards at ThredUP, Inc. and Inflection Point Acquisition Corp. | |
Thomas Armbrust Board | Director | Chairman of the Supervisory Board of CURA Vermögensverwaltung; Chairman of the Supervisory Board of ECE Group | Thomas Armbrust has been a Director at PGRE since 2014 and serves on the Nominating and Corporate Governance Committee and the Investment and Finance Committee. He is also the Chairman of the Supervisory Board at CURA Vermögensverwaltung since January 1, 2020 and the Chairman of the Supervisory Board of ECE Group. |
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Given the significant decrease in core FFO guidance for 2025 due to major tenant move-outs, particularly JPMorgan and Google in San Francisco, what specific strategies are you implementing to backfill these large vacant spaces, and how confident are you in achieving your leasing targets?
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With negative same-store growth expected in 2025 and a substantial amount of lease expirations, especially in San Francisco, can you elaborate on your assumptions regarding occupancy rates and what contingencies are in place if leasing velocity doesn't improve as anticipated?
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Considering the elevated leasing costs and concessions reported in Q4 2024, including high leasing CapEx as a percentage of initial rent, how do you plan to manage leasing expenses going forward to maintain or improve net effective rents?
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The partial sale of 900 Third Avenue reduced your unsecured credit facility capacity to $200 million. With significant debt maturities approaching in 2026, how are you planning to address your refinancing needs, and what are your options if the credit markets remain challenging?
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With large tenants like Showtime, Visa, and KPMG expected to move out in 2026, how are you preparing for these future vacancies, and what impact do you anticipate they will have on your financial performance and occupancy rates in the coming years?
| Customer | Relationship | Segment | Details |
|---|---|---|---|
JPMorgan Chase | Tenant renting office space | Office Properties | Annualized rent: $31.73M (5.0% of total) |
Norton Rose Fulbright | Tenant renting office space | Office Properties | Annualized rent: $29.43M (4.7% of total) |
Allianz | Tenant renting office space | Office Properties | Annualized rent: $29.27M (4.7% of total) |
Wilson Sonsini | Tenant renting office space | Office Properties | Annualized rent: $22.04M (3.5% of total) |
Morgan Stanley | Tenant renting office space | Office Properties | Annualized rent: $20.53M (3.3% of total) |
Warner Music Group | Tenant renting office space | Office Properties | Annualized rent: $20.35M (3.2% of total) |
Showtime Networks | Tenant renting office space | Office Properties | Annualized rent: $17.88M (2.8% of total) |
Tenant renting office space | Office Properties | Annualized rent: $16.65M (2.6% of total) | |
O’Melveny & Myers | Tenant renting office space | Office Properties | Annualized rent: $12.91M (2.1% of total) |
Credit Agricole | Tenant renting office space | Office Properties | Annualized rent: $12.18M (1.9% of total) |
Recent press releases and 8-K filings for PGRE.
- Financial Performance: Core FFO reached $0.17 per share, beating consensus by $0.01, despite same-store growth declines of 4.1% (cash basis) and 5.4% (GAAP) , .
- Leasing Momentum & Pipeline: Executed approximately 284,000 square feet of leases – including deals with Kirkland & Ellis at 900 Third Avenue and law firm Benesch at 1301 Sixth Avenue – and raised leasing guidance to between 900,000 and 1.1 million square feet with a robust pipeline exceeding 375,000 square feet , , .
- Operating Metrics: Detailed performance on Same Store Cash NOI and Same Store NOI with regional breakdowns for New York and San Francisco, highlighting percentage changes from the prior period .
- Asset Quality: Emphasized the company’s strong position as a high-quality owner and operator of Class A office properties, supported by a diversified, high credit tenant base and a detailed lease expiration schedule , .
- Financial Resilience: Provided comprehensive balance sheet and capital structure information, including net debt ratios and liquidity measures, underscoring the firm’s strategic positioning , .
- Core FFO Performance: Q4 2024 core FFO was $0.19 per share contributing to a full-year result of $0.80 per share, with 2025 guidance of $0.51 – $0.57 per share .
- Leasing Highlights: Achieved same store leased occupancies of 85.0% in New York and 83.8% in San Francisco; Q4 added approximately 109,000 square feet (FY total 763,500 square feet) with 2025 leasing activity expected to hit 800,000 – 1,000,000 square feet .
- High-Quality Portfolio: Owns and operates a Class A office portfolio of 13.8 million square feet across 18 assets in New York and San Francisco with nearly $7.8 billion AUM .
- Sustainability Leadership: Entire portfolio is LEED Platinum/Gold certified, ENERGY STAR rated, and Fitwel certified, reinforcing cost management and regulatory compliance .
- Capital Allocation: Sale of a 45% interest in 900 Third Avenue raised approximately $95 million in net proceeds, enhancing financial flexibility .
- Net loss for Q4 2024 was $38.6 million (or $0.18 per share), significantly lower than the $205.6 million (or $0.95 per share) loss reported in Q4 2023.
- Core FFO for the quarter was $41.2 million (or $0.19 per diluted share), compared to $47.4 million in Q4 2023.
- The Company leased 108,824 square feet (with its share amounting to 75,821 square feet at a weighted average rent of $85.65 per square foot) and also executed a strategic transaction by selling a 45.0% equity interest in 900 Third Avenue, resulting in approximately $94.0 million in net proceeds.
- On January 17, 2025, Paramount Group, Inc. entered into a Consent Agreement related to its revolving credit facility, reducing aggregate commitments from $750.0 million to $450.0 million and modifying other key terms.
- The agreement waives certain provisions to enable the disposition of a 45% indirect equity interest and limits future borrowings under the facility to $200.0 million, with further changes effective until June 30, 2025.