Ronald Kamdem, an analyst from Morgan Stanley, maintained the Hold rating on Paramount Group (PGRE – Research Report). The associated price target remains the same with $4.50.
Ronald Kamdem has given his Hold rating due to a combination of factors related to Paramount Group’s recent financial performance and future guidance. Paramount Group’s first-quarter funds from operations (FFO) exceeded consensus estimates, indicating a positive performance against market expectations. This beat was primarily driven by higher property net operating income (NOI). Moreover, the company has raised its full-year FFO guidance, now forecasting a slight increase compared to previous consensus estimates, which suggests moderate confidence in the company’s revenue outlook.
Additionally, Kamdem’s assessment considers the company’s stable key performance indicators (KPIs) and leasing activity. While leasing activity aligned with recent levels, spreads showed a decrease, and tenant improvement and leasing commissions (TI/LCs) remained stable, which indicate a consistent cost of attracting tenants. The unchanged guidance for general and administrative (G&A) expenses and interest expenses points to a steady operational cost environment. However, despite these positive elements, the slight decrease in leased occupancy and the downward revision of same-store net operating income (SS-NOI) might contribute to a more cautious outlook, justifying the Hold rating.
According to TipRanks, Kamdem is a 2-star analyst with an average return of 0.0% and a 50.91% success rate. Kamdem covers the Real Estate sector, focusing on stocks such as Paramount Group, Hudson Pacific Properties, and Re/Max Holdings.
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Paramount Group (PGRE) Company Description:
Paramount Group, Inc. is a real estate investment and management company. It owns, operates, manages, acquires and redevelops office properties in central business district submarkets of New York, District of Columbia and San Francisco. The company was founded by Werner Otto in 1978 and is headquartered in New York, NY.
