Paramount Group Inc. (NYSE: PGRE) saw its stock price plummet 6.76% in pre-market trading on Thursday following the release of its disappointing first-quarter earnings report. The real estate investment trust, which focuses on high-quality office properties in New York City and San Francisco, reported a quarterly adjusted loss that exceeded analysts' expectations.

For the quarter ended March 31, Paramount Group reported an adjusted loss of 5 cents per share, significantly lower than the 5 cents earnings per share reported in the same quarter last year. This result also missed the lone analyst forecast of a 2 cents per share loss. Revenue for the quarter fell 1% to $187.02 million, although it surpassed the analysts' expectation of $180.70 million. The company reported a quarterly net loss of $10.03 million, reflecting the challenging environment in the commercial real estate sector.

The earnings miss comes as Paramount Group continues to face headwinds in 2025. The company's shares have lost 12.1% year-to-date, despite a slight 0.9% gain in the most recent quarter. Wall Street maintains a cautious stance on the stock, with the current average analyst rating being "hold." The median 12-month price target for Paramount Group stands at $4.75, indicating limited upside potential from current levels. As the commercial real estate market continues to evolve, investors will be closely watching Paramount Group's ability to navigate these challenges and return to profitability.