Shares of Paramount Group (PGRE) surged 18.88% in pre-market trading on Thursday, following the release of the company's first-quarter earnings report for 2025. The real estate investment trust's results exceeded analyst expectations, despite reporting a loss.

Paramount Group reported a quarterly adjusted loss of 5 cents per share, which was better than the lone analyst forecast of a 2-cent loss. While this represents a decline from the 5 cents earnings per share reported in the same quarter last year, investors appeared to focus on the company's ability to outperform expectations. Revenue for the quarter came in at $187.02 million, down 1% year-over-year, but still surpassing the analyst estimate of $180.70 million.

The strong pre-market reaction suggests that investors are optimistic about Paramount's performance, especially considering the company's recent track record of beating or meeting earnings estimates. The earnings report shows that Paramount has outperformed expectations in three of the last four quarters, which may be contributing to renewed confidence in the stock. Despite the challenges faced by the commercial real estate sector, Paramount's ability to exceed expectations in the current economic environment appears to be driving the significant stock price increase.