Paramount Group (PGRE), mcap=$1.9bn, price $7.56 vs $7.68

Pitch:
– Well-located NY and SF office buildings at a 7.6% cap rate.
– Valued close to financial crisis lows.
– Self-managed REIT.
– 90% of properties are leased.
– Although leverage at 10xEBITDA is optically high, all debt is at the property level and non-recourse.

Valuation:
– Trades at 60% replacement costs, 7.6% cap rate, and 8x FFO.
– 10-year average FFO multiple of 15x.

Exp. gain: Not specified

Full $PGRE write-up (free guest account required):
https://www.valueinvestorsclub.com/idea/PARAMOUNT_GROUP_INC/6170037852

Leave a Comment