The share price of Paramount Group Inc. (PGRE) fell -7.38% after hours to $8.54. PGRE stock rose 1.43% to $9.22 in Friday’s session. Volume of PGRE stock decreased to 1.31 million shares from 2.26 million shares over the past 50 days. PGRE stock price has risen by 28.95% over the last 12 months, and it has fallen by -5.53% in the last week.
Over the past three months, the PGRE stock has shed -13.10%, and over the past six months, it has shed 1.88%. In addition, PGRE has a current market capitalization of $1.99 billion and its outstanding shares were 218.70 million. After a loan refinance was completed, PGRE stock fell.
How has PGRE Stock refinanced?
As an integrated real estate investment trust based in New York City, Paramount Group acquires, manages, operates, and leases high-quality office properties located in Manhattan, San Francisco, and Los Angeles that are adjacent to downtown business districts. To ensure the high quality of tenants it attracts and retains, PGRE leverages the assets’ sought after locations and its proven management capabilities.
A landmark trophy office building located between 52nd Street and 53rd Street in downtown Manhattan, 1301 Avenue of the Americas has been refinanced for $860 million, the Paramount Group announced recently. The building is currently 71.5% leased. A five-year interest-only loan provided by PGRE has an initial weighted average interest rate of 2.96%, and consists of a $500 million tranche bearing interest at 3.11% fixed rate and 360 million tranche bearing interest at LIBOR plus 2.65% variable rate.
In November 2021, PGRE’s existing $850 million loan was due to mature. The proceeds from the refinancing will be used to repay it. PGRE has strengthened its balance sheet and improved its financial flexibility by refinancing this Class A asset within today’s attractive credit markets. As a testament to the confidence capital markets have in PGRE’s platform, the current transaction shows the strength of the New York City office market.
Earlier this month, the Paramount Group filed its Quarterly Report on Form 10-Q for the quarter ended June 30, 2014 as well as results for the second quarter ended June 30, 2021.
PGRE Stock Second Quarter Highlights:
As of June 30, 2021, PGRE reported a net loss of $15.9 million, or $0.07 per diluted share, attributable to common stockholders. In the quarter ended June 30, 2021, Paramount Group (PGRE) reported Core Funds from Operations (“Core FFO”) of $77.2 million, or $0.22 per diluted share. According to PGRE’s financial report for the quarter ended June 30, 2021, Same Store Cash Net Operating Income (“NOI”) increased by 3.0% and Same Store NOI decreased by 11.0% when compared with the same period a year ago.
