Paramount Group REIT to take an earnings hit as JPMorgan surrenders some lease space acquired through First Republic, SVB lease agreement terminated
Paramount Group Inc. (PGRE) disclosed Friday that it will take an earnings hit as JPMorgan Chase & Co. gave up about one-fourth of the leased office space acquired through First Republic Bank and as its lease with SVB Securities was terminated. The real estate investment trust focused on office properties said the lease deals would reduce 2023 net income by $19.6 million, or 8 cents a share, with revenue revenue being reduced by $5.7 million. Paramount said First Republic least a total of 460,726 square feet at the One Front Street property in San Francisco. After JPMorgan acquired First Republic assets, the bank decided to assume the lease agreement on 344,010 square feet office space but surrender 116,716 square feet of space. In addition, SVB Financial Group subsidiary SVB Securities had leased 108,994 square feet at Paramount's 1301 Avenue of the Americas property in New York, but after SVB's bankruptcy, Paramount terminated the lease and entered into a new lease with the entity that acquired nearly all SVB assets, including 61,183 square feet on a long-term basis and 40,811 square feet on a short-term basis. Paramount's stock, which was little changed in premarket trading, has dropped 27.1% year to date, while the Real Estate Select Sector SPDR exchange-traded fund (XLRE) has gained 2.8% and the S&P 500 has advanced 14.9%.
-Tomi Kilgore
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
07-07-23 0930ET
Copyright (c) 2023 Dow Jones & Company, Inc.-
Never Mind Market Efficiency: Are the Markets Sensible?
-
Starbucks Stock Could Use a Pick-Me-Up After Big Selloff; Is it a Buy?
-
5 Cheap Stocks to Buy From an Attractive Part of the Market
-
Markets Brief: All Eyes On Inflation
-
5 Things We Learned From the Q1 Earnings Season
-
After Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?
-
What’s Happening In the Markets This Week
-
Can the Fed Declare Victory on Inflation?
-
3 Warren Buffett Stocks to Buy After Berkshire Hathaway’s Just-Released 13F Filing
-
Going Into Earnings, Is Nvidia Stock a Buy, a Sell, or Fairly Valued?
-
After Earnings, Is Arista Stock a Buy, a Sell, or Fairly Valued?
-
A Cheap Dividend Aristocrat to Buy Before It Bounces Back
-
Alibaba Earnings: More Positive Outlook Despite Mixed Results
-
After Earnings and a 56% Rally In 2024, Is Arm Stock a Buy, a Sell, or Fairly Valued?
-
How Morningstar Rates Stocks
-
After Earnings, Is Disney Stock a Buy, a Sell, or Fairly Valued?