PGRE Paramount Group Inc

Rithm Capital Corp., a global alternative asset manager, has successfully acquired Paramount Group, Inc. (NYSE: PGRE), a real estate investment trust focused on Class A office properties in New York City and San Francisco. This acquisition significantly enhances Rithm's asset management platform, expanding its commercial real estate footprint with 13 owned and 4 managed high-quality office assets. Rithm plans to further develop and amenitize the portfolio, leveraging its owner-operator model to drive growth and value in what it believes to be recovering office markets.

Former Paramount Group CEO and chairman, Albert Behler, was escorted out of his old office at 1633 Broadway after showing up despite no longer being employed by the company. This bizarre incident occurred on Rithm Capital's first day as the new owner of Paramount Group, following their $1.6 billion acquisition. Behler's departure caps a tumultuous year marked by undisclosed payments, an SEC investigation, and a rejected $34 million golden parachute proposal.

Paramount Group (PGRE) has seen a significant 41% share price rebound over the past year, despite the office real estate sector being out of favor. While its price-to-sales ratio of 2.1x suggests overvaluation compared to peers, a Discounted Cash Flow model paints an even bleaker picture, indicating the stock is trading well above its estimated fair value. This raises questions about whether the current market optimism is based on sentiment rather than improving fundamentals.

Shareholders of Paramount Group have approved the sale of the office landlord to Rithm Capital for $6.95 a share, despite an earlier lower bid. Concurrently, they voted against a $34 million "golden parachute" for CEO Albert Behler, influenced by proxy advisers citing governance issues and undisclosed payments. Despite the non-binding vote, Paramount indicated it still intends to grant Behler his bonus.

Hudson Bay Capital Management LP recently acquired a new position in Paramount Group, Inc. (NYSE:PGRE), purchasing over 1 million shares valued at approximately $6.11 million. This move contributes to the 65.64% institutional ownership of the financial services provider. Analysts currently have a "Hold" rating on Paramount Group with a consensus target price of $6.45, as the stock shows mixed financial performance with a recent EPS beat but negative ROE and net margin.

Paramount Group (NYSE:PGRE) experienced a significant trading volume increase of 214%, with 8,595,069 shares traded, closing near $6.62. Analysts have a consensus "Hold" rating with a $6.45 target price for the real estate investment trust. Despite positive earnings and revenue beats, the company shows negative profitability metrics like a PE of -14.71 and a negative net margin.