Paramount Group suspends quarterly dividend

Real estate investment trust Paramount Group (PGRE) has opted to suspend its quarterly dividend. Paramount CEO Albert Behler said the move "aligns with our commitment to fortify our balance sheet and maintain the utmost financial flexibility."

Editor's note: This post has been updated to reflect that it was Paramount Group, not Paramount Global, that suspended its dividend.

Video transcript

Paramount announcing this morning that it will suspend its quarterly dividend, which is meant to be paid out on October 15th.

Now, this comes on the heels of a lot of news that we've seen play out with the Sky Dance Merger and Paramount.

You can see shares of Paramount Global Global up about 2.5% on the heels of this decision.

Perhaps the idea being that anything that can help with the bottom line for the company forward is a sign of positive news to come when it comes to the Paramount story.

But it's been interesting to see just the kind of back and forth following Paramount again, tons of news to pick from but filing with the FCC details, post that deals partnership, certainly some issues with their debt profile.

We're seeing them trying to get rid of some debt that they have in San Francisco, just a lot of back and forth with the company as they and kind of clean up the balance sheet here.

Yes, certainly.

I I don't think this comes as a huge surprise, the company saying that they're doing this in order to fortify their balance sheet, try to uh maintain the most financial flexibility.

You talk about the fact that they have a number of challenges out there ahead of them.

So you're looking to move to the upside here of nearly 3% off the highs of the morning session.

But when you take a look at that one month chart going back even further paramount, obviously, a company uh that has been struggling to say the least when we talk about the competitive landscape within the sector.

Now, lots of uncertainty about the future of paramount and what that would look like with the Sky Dance deal.

So again, suspending their dividend, we are seeing a slight move to the upside here.

And I think a lot of that given the fact that it will give the uh the company the ability to, to uh obtain or at least maintain some more flexibility when it comes to their financial future.

And exactly what that looks like.