Shares of Paramount Group Inc. (NYSE: PGRE) tumbled 6.76% in pre-market trading on Thursday, following the release of its first-quarter earnings report that fell short of analyst expectations. The real estate investment trust, which focuses on high-quality office properties in New York City and San Francisco, reported a quarterly adjusted loss of 5 cents per share, significantly lower than the 5 cents per share profit recorded in the same quarter last year.

The company's financial performance disappointed investors and analysts alike. While the lone analyst covering Paramount had forecast a loss of 2 cents per share, the actual results were worse than anticipated. Revenue for the quarter also declined by 1% to $187.02 million, although this figure slightly exceeded the analyst's expectation of $180.70 million. The company reported a quarterly net loss of $10.03 million, further contributing to the negative sentiment surrounding the stock.

Despite the challenging quarterly results, Paramount Group announced a positive development in its leasing activities. The company signed a significant 121,000 square foot, 16.5-year lease with law firm Benesch, Friedlander, Coplan & Aronoff LLP at its 1301 Avenue of the Americas property in Midtown Manhattan. This lease brings the occupancy of the building to 90%, potentially providing some long-term stability to the company's portfolio. However, this news appears to have been overshadowed by the disappointing earnings report in the eyes of investors.