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 ...

Portfolio Composition - As of December 31, 2024, Peakstone Realty Trust's portfolio consists of 103 properties, including 97 operating properties and 6 redevelopment properties[26]. - The company owns and operates 103 properties, consisting of 97 operating properties and six redevelopment properties, across 24 states with 83 lessees[89]. - The total Annualized Base Rent (ABR) for the portfolio was $185,056,000, with the top 10 tenants accounting for 43.8% of total ABR[183]. - The company reported a revenue concentration by state, with Arizona contributing 11.0% of ABR, followed by Colorado at 7.6% and Massachusetts at 6.9%[180]. - Approximately 60.9% of the company's portfolio, based on Annualized Base Rent as of December 31, 2024, is comprised of office assets, which have experienced a decrease in demand and value[77]. - The company plans to continue growing its industrial segment, which currently represents about 39.1% of its portfolio based on Annualized Base Rent as of December 31, 2024[79]. Strategic Focus - The company is strategically shifting its portfolio towards industrial outdoor storage (IOS) by divesting non-core assets and investing in IOS opportunities[27]. - The company acquired a portfolio of 51 industrial outdoor storage properties across 14 states in November 2024, marking a shift in business strategy towards more industrial assets[62]. - The company is focusing on repositioning its portfolio towards industrial assets through divestment of non-core assets and reinvestment in industrial outdoor storage (IOS) opportunities[221]. Financial Performance and Risks - The company aims to enhance portfolio performance and maximize shareholder value while ensuring financial flexibility for future opportunities[27]. - Approximately 50% of the company's Annualized Base Rent is scheduled to expire within the next four years, increasing the risk of vacancies and potential adverse effects on financial performance[52]. - The company relies on five tenants for approximately 25% of its revenue, with the largest being Keurig Dr. Pepper (6.4%), Amazon (5.4%), Southern Company Services (5.1%), LPL Holdings (4.8%), and Maxar Technologies (4.3%) as of December 31, 2024[50]. - The company may face challenges in integrating and managing the newly acquired IOS properties, which could adversely affect financial performance[63]. - The company may incur significant costs related to deferred maintenance if properties are not adequately maintained by tenants[57]. - The company faces significant competition for tenants, which may decrease occupancy and rental rates, adversely impacting financial results[60]. - The company may not be able to fully benefit from increases in market rental rates due to fixed renewal rates in certain leases[56]. Debt and Financing - As of December 31, 2024, the company had $1.36 billion of outstanding indebtedness, consisting of $1.0 billion of unsecured debt and $360.3 million of secured debt[108]. - The company's indebtedness requires a significant portion of cash flow from operations to service debt payments, reducing available cash for other needs[108]. - The company may need to seek alternative financing sources for acquisitions if traditional financing is not available on acceptable terms[70]. - High debt levels could lead to increased interest charges and higher debt service payments, adversely affecting the company's financial condition[114]. - The company may incur additional indebtedness secured by properties, increasing vulnerability to economic conditions and limiting access to capital markets[116]. - Increases in interest rates could raise debt payments, negatively impacting the ability to pay dividends to shareholders[118]. Compliance and Regulatory Risks - The company has elected to be taxed as a REIT and believes it has satisfied the REIT requirements as of December 31, 2024[31]. - Environmental regulations may impose significant compliance costs, and failure to meet these requirements could result in material fines[32]. - The company may incur additional costs to comply with the Americans with Disabilities Act (ADA) and other regulations, which could adversely affect financial performance[96]. - Changes in zoning, occupancy, and land use regulations could limit the company's ability to lease properties and increase competition for available land[101]. - The company is subject to risks from climate change and natural disasters, which could result in physical damage to properties and increased insurance costs[106]. - Legislative or regulatory tax changes related to REITs could materially and adversely affect the company's business[132]. Cybersecurity and Operational Risks - The company faces numerous cybersecurity risks that threaten the confidentiality, integrity, and availability of its IT systems and confidential information[158]. - Cyber incidents could result in operational interruptions, regulatory enforcement, and damage to tenant relationships, potentially leading to significant expenses[159]. - The company has developed a cybersecurity risk management program integrated into its overall enterprise risk management program[168]. - The cybersecurity governance includes a security team responsible for managing risks related to confidential information and critical systems[172]. - The company maintains a cybersecurity insurance policy, although it may not cover all costs arising from cybersecurity incidents[170]. Market Conditions and Economic Factors - The commercial real estate market is highly competitive, with numerous public and private investors competing for acquisition and investment opportunities[28]. - Economic and geopolitical conditions, including market volatility and health crises, could materially adversely affect the company's business and financial condition[82]. - Current market conditions for real estate investors are influenced by economic factors, geopolitical tensions, and changes in monetary policy, leading to a cautious sentiment[222]. - Despite challenges, investors are still seeking opportunities to generate returns through real estate investments[222]. Shareholder and Governance Matters - The company must distribute at least 90% of its REIT taxable income to maintain REIT status, which may limit cash available for operations and investments[123]. - Failure to qualify as a REIT could result in additional tax liabilities, reducing net earnings available for dividends[121]. - The company has broad authority to incur debt, which could lead to a shortfall between cash flow from properties and cash flow needed to service debt[114]. - The future issuance of common shares could dilute existing shareholders and adversely affect the market price of common shares[139]. - The company has ownership limits in its declaration of trust to maintain REIT qualification, prohibiting ownership of more than 9.8% of shares by any individual or entity[148]. - The company may need to fund dividend payments from external sources, including debt or equity financings, which could impact financial stability[135].

EXHIBIT 99.1 Peakstone Realty Trust Reports Fourth Quarter and Full Year 2024 Results - Shift Towards Industrial Continues - - Focused on Investment in Industrial Outdoor Storage (IOS) Properties; $490mm IOS Portfolio Acquired in Fourth Quarter - - Divested $317 million of Non-Core Assets in 2024 including all Other Segment Assets - - Amended and Extended Credit Facility - - Continued Leasing Success; Significant Volume at Favorable Releasing Spreads - El Segundo, Calif. (February 20, 2025) - Peakstone Real ...

Investors in Peakstone Realty Trust (PKST) need to pay close attention to the stock based on moves in the options market lately. That is because the Feb 21, 2025 $10.00 Call had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It coul ...

Peakstone Realty Trust (PKST) came out with quarterly funds from operations (FFO) of $0.65 per share, missing the Zacks Consensus Estimate of $0.73 per share. This compares to FFO of $0.78 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an FFO surprise of -10.96%. A quarter ago, it was expected that this company would post FFO of $0.71 per share when it actually produced FFO of $0.70, delivering a surprise of -1.41%. Over the last four quarters, the ...

EXHIBIT 99.1 Peakstone Realty Trust Reports Third Quarter 2024 Results - Completed 147,400 square feet of Leasing at Significant Spreads - Multiple Sales Meaningfully reduced Other Segment (now approximately 10% of ABR) - Strong Foundation for Growth El Segundo, Calif. (October 30, 2024) - Peakstone Realty Trust (the "Company") (NYSE: PKST), a real estate investment trust that owns and operates a high-quality, newer-vintage portfolio of predominantly singletenant industrial and office properties, today anno ...

Investor Presentation Second Quarter 2024 Disclaimers / Forward-Looking Disclosure 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 provisions for forward looking statements ...