Peakstone Realty Trust (PKST) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Indiv ...

Group 1: Stock Recommendations - Swedbank AB (publ) (SWDBY) has seen a 9.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days and offers a dividend yield of 7.8%, significantly higher than the industry average of 3.7% [1] - Peakstone Realty Trust (PKST) has experienced a 14.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days, with a dividend yield of nearly 7%, compared to the industry average of nearly 5% [2] - Postal Realty Trust, Inc. (PSTL) has seen a 5.2% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] Group 2: Dividend Yields - The average dividend yield for Swedbank AB (publ) is 7.8%, while the industry average is 3.7% [1] - Peakstone Realty Trust has a dividend yield of nearly 7%, exceeding the industry average of nearly 5% [2] - Another company mentioned has a dividend yield of 6.8%, which is also above the industry average of nearly 5% [3]

Peakstone Realty Trust (PKST) came out with quarterly funds from operations (FFO) of $0.62 per share, beating the Zacks Consensus Estimate of $0.59 per share. This compares to FFO of $0.70 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of 5.08%. A quarter ago, it was expected that this company would post FFO of $0.61 per share when it actually produced FFO of $0.65, delivering a surprise of 6.56%.Over the last four quarters, the comp ...

Financial Data and Key Metrics Changes - Total revenue for the quarter was approximately $57 million, with cash NOI around $46 million [12] - Net loss attributable to common shareholders was approximately $49.4 million, or $1.35 per share, including a noncash impairment of about $52 million related to potential asset sales in the office segment [12] - Same store cash NOI increased by 5.8% in the industrial segment and 3.1% in the office segment, resulting in an overall increase of 4% compared to the same quarter last year [12] - Core FFO and AFFO were both approximately $24.6 million, or $0.62 per share on a fully diluted basis [12] Business Line Data and Key Metrics Changes - The industrial segment's ABR increased by $2.4 million quarter over quarter, driven by a 10% rise in AVR from iOS properties [4] - Industrial segment ABR represented 41% of total ABR at quarter end and 43% on a pro forma basis after accounting for office dispositions [5] - Significant leasing activity included a fully leased iOS redevelopment property in Everett, Washington, contributing approximately $1.7 million in incremental ABR [5][6] Market Data and Key Metrics Changes - The company has closed approximately $144 million in office asset sales year to date, with strong investor demand for office assets [5][9] - Office properties with more than five years of remaining term are generally priced on a cap rate basis between 7.5% and 12.5% on in-place NOI [10] - The company has completed over $2 billion in office sales across more than 30 markets over the past three years [9] Company Strategy and Development Direction - The company is transitioning to an industrial REIT, focusing on growth in the industrial outdoor storage (iOS) subsector [4] - The strategy includes reshaping the portfolio through targeted iOS growth initiatives and strategic asset sales, primarily in the office segment [4] - The company aims to divest office assets to reallocate capital to higher growth opportunities within the iOS space and reduce leverage [18] Management's Comments on Operating Environment and Future Outlook - Management believes high-quality iOS properties in supply-constrained markets present significant long-term growth opportunities [18] - The company expects to continue paying dividends quarterly, with future decisions made by the board of trustees [17] - Management is optimistic about the future and is actively engaged in the marketplace during the transition [56][57] Other Important Information - The company introduced two new reporting metrics: core FFO and adjusted EBITDAre to enhance comparability in evaluating ongoing performance [11] - Total liquidity at quarter end was approximately $336 million, consisting of cash and available revolver capacity [13] - The weighted average interest rate for all debt remains at 4.4%, with 88% of the debt fixed [16] Q&A Session Summary Question: Can you help us think about the ABR at the remaining five iOS sites? - Management indicated that they are not providing specific guidance on ABR ranges due to the variety of locations but are comfortable with the ranges previously indicated [20][21] Question: What are you seeing in the market regarding additional acquisition opportunities? - Management noted a balanced approach to growth and leverage, with a good pipeline of individual deals and portfolios being evaluated [22][24][25] Question: What is your target leverage and timeline for bringing it down to a comfortable level? - Management's target leverage is in the six times range or below, and they are currently at 6.8 times after recent asset sales [32][33] Question: What will determine how much you push the gas on office dispositions? - Management stated that dispositions are evaluated on a case-by-case basis, focusing on maximizing shareholder value and achieving favorable pricing [36][38] Question: What characteristics differentiate office assets at the lower end of the cap rate range versus the higher end? - Management explained that the differentiation generally comes down to lease duration and specific property characteristics [42][43] Question: How would you characterize tenant demand in the IOS segment? - Management reported stable demand, with interest from tenants willing to take properties as is, and no significant changes in demand since acquiring the properties [49][51]

Peakstone Realty Trust (PKST) Q1 2025 Earnings Call May 08, 2025 05:00 PM ET Speaker0 Realty Trust First Quarter twenty twenty five Earnings Webcast Conference Call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It Speaker1 is Speaker0 now my pleasure to introduce your host, Mr. Steve Sweth, Investor Relations. Please go ahead, sir. Speaker1 Good afternoon, and thank you for ...

First Quarter 2025 Disclaimers / Forward-Looking Disclosure Cautionary Statement Regarding Forward-Looking Statements This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). We intend for all such forward-looking statements to be covered by the applicable safe harbor provisi ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ____________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-41686 Peakstone Realty Trust (Exact name of Registrant as specified in ...

Revenue and Income - Revenue for Q1 2025 was approximately $57.0 million, a decrease from $59.2 million in the same quarter last year[12] - Rental income for the three months ended March 31, 2025, was $56,971 thousand, down from $59,227 thousand in the same period of 2024, a decrease of about 4%[32] - The net loss attributable to common shareholders for Q1 2025 was $49,382 thousand, contrasting with a net income of $5,025 thousand in Q1 2024[32] - The net loss for the three months ended March 31, 2025, was $(53,401), compared to a net income of $5,470 in the same period of 2024[40] Funds from Operations - Core Funds from Operations (Core FFO) was $0.62 per share, down from $0.65 per share in Q1 2024[14] - Adjusted Funds from Operations (AFFO) was also $0.62 per share, compared to $0.70 per share in the same quarter last year[14] - Funds from Operations (FFO) for Q1 2025 were reported at $24,569 thousand, an increase from $21,180 thousand in Q1 2024, reflecting a growth of about 11%[38] - Core Funds from Operations (Core FFO) decreased to $24,617 thousand in Q1 2025 from $25,585 thousand in Q1 2024, a decline of approximately 4%[38] - Adjusted Funds from Operations (AFFO) available to common shareholders and limited partners was $24,820 thousand in Q1 2025, down from $27,780 thousand in Q1 2024, a decrease of about 10%[38] Expenses and Liabilities - Total expenses surged to $94,861 thousand in Q1 2025, compared to $46,237 thousand in Q1 2024, indicating an increase of approximately 105%[32] - Total liabilities slightly decreased from $1,524,210 thousand as of December 31, 2024, to $1,516,401 thousand as of March 31, 2025, a reduction of about 1%[30] - Total debt as of March 31, 2025, was $1,360.3 million, with a net debt to Adjusted EBITDAre ratio of 7.0x[18] Real Estate and Operations - The company sold $144 million of office properties year-to-date, including $34 million in Q1 2025[5] - A new IOS lease for 3.3 usable acres commenced with a releasing spread of 185% (cash) and 218% (GAAP)[9] - The company completed a 9.8-year, full-site lease for all 37 usable acres at the Everett, WA IOS redevelopment property[10] - The Industrial segment's annualized base rent (ABR) grew by $2.4 million quarter-over-quarter, representing 41% of total ABR during the quarter[4] Performance Metrics - Same Store Cash Net Operating Income (Same Store Cash NOI) increased by 4.0% to approximately $39.0 million compared to $37.5 million in Q1 2024[15] - For the three months ended March 31, 2025, the total NOI was $48,200, compared to $47,627 for the same period in 2024, representing an increase of 1.2%[40] - The Cash NOI for the three months ended March 31, 2025, was $45,604, a decrease of 3.1% from $47,330 in 2024[40] - The Industrial Cash NOI increased significantly to $18,423 in Q1 2025 from $11,817 in Q1 2024, marking a growth of 56.5%[40] - The Office Cash NOI decreased slightly to $27,181 in Q1 2025 from $27,504 in Q1 2024, a decline of 1.2%[40] - The total Same Store Cash NOI for Q1 2025 was $39,001, up 3.9% from $37,514 in Q1 2024[40] Impairment and Adjustments - The company reported a significant real estate impairment provision of $51,957 thousand in Q1 2025, compared to only $1,376 thousand in Q1 2024[32] - The company reported an impairment provision for real estate of $51,957 in Q1 2025, compared to $1,376 in Q1 2024[40] - Adjusted EBITDAre for Q1 2025 was $41,231, reflecting the company's ongoing operating performance adjustments[50] - Interest expense for Q1 2025 was $15,978, slightly down from $16,148 in Q1 2024[40] Shareholder Information - The weighted-average number of common shares outstanding increased from 36,309,019 in Q1 2024 to 36,726,154 in Q1 2025[38] - The company plans to enhance comparability and consistency in evaluating ongoing operating performance with the introduction of Adjusted EBITDAre[49]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was approximately $58 million, with cash NOI around $48 million [21] - Net income attributable to common shareholders was approximately $12.7 million or $0.35 per share [21] - FFO was approximately $29.2 million or $0.74 per share on a fully diluted basis, while AFFO was approximately $25.6 million or $0.65 per share [21] - Same-store cash NOI was approximately $39 million, reflecting a 0.4% increase compared to the same quarter last year [22] - For the full year 2024, AFFO was approximately $106.6 million or $2.69 per share on a fully diluted basis [23] Business Line Data and Key Metrics Changes - The company acquired a 51-property infill industrial outdoor storage portfolio for $490 million, increasing industrial ABR to nearly 40% of total ABR, up from 25% at the beginning of 2024 [6][17] - The company divested $317 million of non-core assets, including the elimination of the entire other segment [7][11] - Leasing activity included approximately 837,000 square feet leased with a weighted average lease term of 4.5 years, achieving favorable re-leasing spreads of 32% on a GAAP basis and 23% on a cash basis [14] Market Data and Key Metrics Changes - The operating portfolio consists of 103 properties, with 64 in the industrial segment and 33 in the office segment [16] - The industrial segment ABR now accounts for nearly 40% of total ABR, with IOS properties being 100% leased and a potential 70% mark-to-market opportunity [17] - The office segment properties are 99% leased with 60% investment-grade tenancy [18] Company Strategy and Development Direction - The company is focusing on shifting its portfolio towards industrial assets, particularly IOS properties, which are characterized by low building-to-land ratios and significant supply constraints [9][10] - The strategic plan includes maintaining a disciplined approach to debt levels while pursuing growth through targeted acquisitions in the IOS sector [32] - The company aims to balance growth with deleveraging, targeting a net debt to EBITDA ratio of 6:1 [74] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the IOS sector and the company's ability to drive long-term shareholder value [10][33] - The management noted strong demand for properties and positive leasing activity, indicating a favorable operating environment [15][47] - Future dividend decisions will be made by the Board of Trustees, but the company expects to continue paying dividends quarterly [30] Other Important Information - The company successfully amended and extended its credit facility, allowing for the extension of $750 million of near-term maturities to 2028 [25] - The company extinguished all associated AIG debt following the sale of non-core assets, improving its leverage position [54] Q&A Session Summary Question: Comments on acquisition appetite for IOS vs traditional industrial properties - Management indicated a strong focus on IOS assets due to better growth dynamics and a favorable cap rate differential [36][37] Question: Interest in office portfolio and buyer demand - Management noted local specialists are finding current prices appealing, and 44% of gross proceeds came from existing tenants [43][44] Question: Use of proceeds from the sale of the Other segment - Majority of proceeds were used to pay off AIG debt, with a balanced approach to leverage and growth [54][55] Question: Future of industrial ABR expiring in 2026 - Management is optimistic about tenant renewals and is actively discussing lease expirations with tenants [58][59] Question: Marketing of the office portfolio and buyer interest - Properties are on the market, and there is a sense of increased positivity in buyer demand compared to previous years [78]

Investor Presentation Fourth Quarter 2024 Disclaimers / Forward-Looking Disclosure Cautionary Statement Regarding Forward-Looking Statements This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). We intend for all such forward-looking statements to be covered by the applica ...