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Key Takeaways
- Real estate investment trust Paramount Group on Friday suspended its quarterly dividend to “fortify” its balance sheet and allow for the “utmost financial flexibility.”
- The dividend of $0.035 was set to be paid on Oct. 15.
- The move came soon after it was reported Paramount is in talks with lenders to sell its Market Center property in San Francisco.
Paramount Group (PGRE) shares edged higher Friday as the real estate investment trust (REIT) that specializes in commercial properties suspended its regular quarterly dividend of $0.035 that was to be paid Oct. 15.
Chief Executive Officer (CEO) Albert Behler explained that the move “aligns with our commitment to fortify our balance sheet and maintain the utmost financial flexibility.” No timetable for when the payments could resume was given.
Move Comes Soon After Report It May Sell San Francisco Complex
The decision came soon after it was reported that the company was in discussions with lenders to sell off the 750,000-square-foot Market Center in San Francisco’s financial district to pay off $402 million in debt that is backed by the complex.
Paramount purchased Market Center for $722 million from Blackstone (BX) in 2019. The San Francisco Business Times said if the site is put up for sale it would be “the most significant to hit the market in terms of square footage since prepandemic.”
Shares of Paramount Group rose less than 1% to $4.97 in late-morning trading Friday but are down about 4% this year.