Office REIT Paramount Group jumps after strategic review, management transition announced

Paramount Group's PGRE.N shares jump 14.3% to $5.47 after real estate investment trust announces strategic review and changes to management

Stock on course for biggest one-day pct gain since Feb 2022, hits highest since Dec 2023

PGRE, which owns and operates Class A office properties in New York City and San Francisco, early Mon said its board started review and evaluation of strategic alternatives to maximize shareholder value

“As Paramount continues to build on the strong leasing momentum from the first quarter, the Board and management team remain focused on closing the persistent gap between the Company’s public market valuation and our assessment of its intrinsic value," CEO Albert Behler said in the statement

Co said hired BofA Securities BAC.N as financial advisor and Latham & Watkins as legal advisor, adding there is no timetable for review's completion and it does not intend to comment publicly until the process has been completed

It also announced Ermelinda Berberi, accounting chief since 2017, as CFO and Treasurer effective immediately. Berberi succeeds Wilbur Paes, who is stepping down from roles of COO, CFO and Treasurer

In addition, Timothy Dembo appointed General Counsel, effective immediately, succeeding Gage Johnson

On Apr 30, PGRE reported Q1 core funds from operations of 17 cents/sh, down from 22 cents a year ago, while it increased same store leased occupancy to 86.2% from 84.8% at end Dec

PGRE shares, now up ~11% YTD, hit record intraday low of $3.75 on Apr 7