Revenue contraction and rising operating costs have compressed NOI margins from 62.0% in 2024Q1 to 54.1% in 2025Q3, signaling deteriorating operational efficiency.
| Metric | TTM | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Revenue | 723.29M | 757.45M | 742.79M | 740.38M | 726.79M | 714.24M | 769.18M | 758.96M | 718.97M | 683.34M | 662.41M | 419.89M | 58.65M | 54.29M |
| Revenue Growth % | -5.29% | 1.97% | 0.33% | 1.87% | 1.76% | -7.14% | 1.35% | 5.56% | 5.21% | 3.16% | 57.76% | 615.89% | 8.04% | - |
| Property Operating Expenses | 309.36M | 303.28M | 544.61M | 277.42M | 265.44M | 267.59M | 274.84M | 274.08M | 266.14M | 250.04M | 244.75M | 16.2M | 16.2M | 15.4M |
| Net Operating Income (NOI) | 413.93M | 454.17M | 198.18M | 462.95M | 461.35M | 446.65M | 494.34M | 484.88M | 452.83M | 433.3M | 417.65M | 403.69M | 42.46M | 38.89M |
| NOI Margin % | 57.23% | 59.96% | 26.68% | 62.53% | 63.48% | 62.54% | 64.27% | 63.89% | 62.98% | 63.41% | 63.05% | 96.14% | 72.39% | 71.63% |
| Operating Expenses | 307.84M | 305.88M | 61.99M | 292M | 291.62M | 300.12M | 316.9M | 315.79M | 324.99M | 320.09M | 336.68M | 33.5M | 72.1M | 62.6M |
| G&A Expenses | 74.51M | 66.33M | 61.99M | 59.49M | 59.13M | 64.92M | 68.56M | 57.56M | 58.95M | 50.64M | 42.06M | 33.5M | 56.89M | 45.93M |
| EBITDA | 342.26M | 387.84M | 386.84M | 403.47M | 402.22M | 725.02M | 734.37M | 712.96M | 717.16M | 643.53M | 365.24M | 342.17M | 342.17M | 178.92M |
| EBITDA Margin % | 47.32% | 51.2% | 52.08% | 54.49% | 55.34% | 101.51% | 95.47% | 93.94% | 99.75% | 94.17% | 55.14% | 81.49% | 583.39% | 329.56% |
| Depreciation & Amortization | 236.16M | 239.54M | 250.64M | 232.52M | 232.49M | 604.06M | 575.36M | 591.34M | 593.98M | 535.59M | 294.62M | 10.58M | 10.58M | 10.1M |
| D&A / Revenue % | 32.65% | 31.62% | 33.74% | 31.41% | 31.99% | 84.57% | 74.8% | 77.91% | 82.62% | 78.38% | 44.48% | 2.52% | 18.04% | 18.61% |
| Operating Income | 106.1M | 148.3M | 136.19M | 170.95M | 169.73M | 120.96M | 159.01M | 121.62M | 123.19M | 107.94M | 70.62M | 331.59M | 331.59M | 168.81M |
| Operating Margin % | 14.67% | 19.58% | 18.34% | 23.09% | 23.35% | 16.94% | 20.67% | 16.03% | 17.13% | 15.8% | 10.66% | 78.97% | 565.34% | 310.94% |
| Interest Expense | 4M | 156.7M | 146.77M | 143.86M | 142.01M | 134.93M | 137.36M | 136.63M | 132.57M | 150.94M | 168.37M | 0 | 29.37M | 36.91M |
| Interest Coverage | - | 0.77x | -1.52x | 0.78x | 0.98x | 0.91x | 1.03x | 1.12x | 1.85x | 1.00x | 1.13x | - | 11.69x | 4.98x |
| Non-Operating Income | 51.76M | 27.93M | 359.3M | 58.17M | 31.14M | -1.34M | 28.52M | -31.56M | -121.74M | -42.25M | -118.89M | 163.32M | -11.65M | -10.97M |
| Pretax Income | -104.77M | -36.34M | -369.88M | -24.93M | 5.7M | -12.63M | -29.29M | 22.13M | 112.35M | 3.85M | 23.71M | 313.87M | 313.87M | 146.72M |
| Pretax Margin % | -14.49% | -4.8% | -49.8% | -3.37% | 0.78% | -1.77% | -3.81% | 2.92% | 15.63% | 0.56% | 3.58% | 74.75% | 535.13% | 270.26% |
| Income Tax | -700K | 2.06M | 1.43M | 3.27M | 3.64M | 1.49M | 312K | 3.14M | 5.18M | 1.78M | 2.57M | -11.03M | 11.03M | 6.98M |
| Effective Tax Rate % | 0.67% | -5.66% | -0.39% | -13.1% | 63.89% | -11.82% | -1.07% | 14.18% | 4.61% | 46.32% | 10.82% | -3.51% | 3.51% | 4.76% |
| Net Income | -97.4M | -46.29M | -259.74M | -36.4M | -20.35M | -14.12M | -29.6M | 9.15M | 86.38M | -9.93M | -4.42M | 324.9M | 16.51M | 2.29M |
| Net Margin % | -13.47% | -6.11% | -34.97% | -4.92% | -2.8% | -1.98% | -3.85% | 1.21% | 12.01% | -1.45% | -0.67% | 77.38% | 28.16% | 4.23% |
| Net Income Growth % | 54.31% | 82.18% | -613.52% | -78.85% | -44.14% | 52.3% | -423.64% | -89.41% | 969.55% | -124.8% | -101.36% | 1867.4% | 619.56% | - |
| Funds From Operations (FFO) | 138.75M | 193.25M | -9.1M | 196.11M | 212.13M | 589.93M | 545.76M | 600.48M | 680.36M | 525.66M | 290.2M | 335.48M | 27.1M | 12.4M |
| FFO Margin % | 19.18% | 25.51% | -1.23% | 26.49% | 29.19% | 82.6% | 70.95% | 79.12% | 94.63% | 76.92% | 43.81% | 79.9% | 46.2% | 22.84% |
| FFO Growth % | 16.39% | 2223.67% | -104.64% | -7.55% | -64.04% | 8.09% | -9.11% | -11.74% | 29.43% | 81.13% | -13.5% | 1138.11% | 118.53% | - |
| FFO per Share | 0.63 | 0.89 | -0.04 | 0.89 | 0.97 | 2.65 | 2.36 | 2.51 | 2.88 | 2.41 | 1.37 | 1.58 | 0.11 | 0.05 |
| FFO Payout Ratio % | 1.65% | 11.81% | 0% | 37.24% | 31.81% | 16.62% | 18.89% | 17.5% | 14.81% | 19.12% | 29.45% | 44.45% | 445.08% | 75.35% |
| EPS (Diluted) | -0.44 | -0.21 | -1.20 | -0.13 | 0.01 | -0.06 | -0.13 | 0.04 | 0.37 | -0.05 | -0.02 | 1.53 | 0.07 | 0.01 |
| EPS Growth % | 54.11% | 82.5% | -823.08% | - | 114.8% | 51.15% | -440.31% | -89.68% | 911.4% | -119.23% | -101.36% | 2159.97% | - | - |
| EPS (Basic) | - | -0.21 | -1.20 | -0.13 | 0.01 | -0.06 | -0.13 | 0.04 | 0.37 | -0.05 | -0.02 | 1.53 | 0.07 | 0.01 |
| Diluted Shares Outstanding | 220.51M | 217.24M | 216.92M | 221.31M | 218.7M | 222.44M | 231.54M | 239.56M | 236.4M | 218.05M | 212.11M | 212.11M | 244M | 244M |
San Francisco CBD exposure
As reported in recent financial filings, Paramount Group's revenue has trended downward, culminating in an 11.3% year-over-year decline in 2025Q3, which suggests that the company is struggling to maintain its top-line momentum within its core New York and San Francisco trophy office asset portfolio.
The consistent decline in quarterly revenue from the 2024 peak of $194.9 million indicates that the company is facing significant challenges in renewing leases at favorable rates. This trajectory appears to reflect a broader softening in demand for high-end office space, which may be exacerbated by the company's concentrated exposure to the San Francisco market.
Based on the company's quarterly data, NOI margins have compressed from a high of 62.0% in 2024Q1 to 54.1% in 2025Q3, indicating that rising property-level operating expenses are increasingly eroding the profitability of the firm's core real estate assets despite their trophy status.
The erosion of property-level margins suggests that the cost of maintaining high-touch, Class A office environments is rising faster than the company can pass those costs through to tenants. Investors should monitor whether this margin compression is a permanent structural shift or a temporary result of increased leasing incentives required to retain occupancy.
According to the provided income statement data, FFO per share has experienced significant volatility, dropping from $0.33 in 2024Q1 to $0.14 in 2025Q3, a trend that warrants further investigation into the underlying stability of the company's recurring cash flow generation capabilities.
The sharp decline in FFO growth, including a 40.7% year-over-year contraction in the most recent quarter, raises questions regarding the company's ability to cover distributions without relying on capital recycling. The erratic nature of these earnings suggests that the portfolio's cash flow is highly sensitive to lease expirations and the current tenant-favorable leasing environment.
Financial statements reveal a persistent trend of negative net income, with a loss of $28.9 million in 2025Q3, which may indicate that non-cash depreciation charges or asset impairments are significantly distorting the perceived health of the company's bottom line relative to its actual cash-generating capacity.
While GAAP net income is often misleading for REITs, the consistent losses reported by Paramount suggest that the company may be facing genuine asset-level devaluations, particularly within its San Francisco holdings. Analysts should look past the headline net loss to determine if these figures are driven by non-cash accounting adjustments or a fundamental deterioration in the portfolio's economic value.
Quick answers to the most common questions about buying PGRE stock.
For fiscal year 2024, Paramount Group, Inc. (PGRE) reported total revenue of $757.5M. This represents a 1295.2% increase compared to $54.3M in 2012.
Paramount Group, Inc. (PGRE) reported a net loss of $46.3M for the fiscal year ending 2024.
Paramount Group, Inc. (PGRE) reported an operating income of $148.3M, resulting in an operating profit margin of 19.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Paramount Group, Inc. (PGRE) generated $454.2M in gross profit for the year, representing a gross profit margin of 60.0%. This demonstrates the company's core pricing power and production efficiency.