Peakstone Realty Trust(PKST) - 2025 Q1 - Quarterly Report

Financial Performance - 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%[18] - The net loss attributable to common shareholders for the three months ended March 31, 2025, was $49,382 thousand, compared to a net income of $5,025 thousand in the same period of 2024[18] - The company reported a comprehensive loss of $65,487 thousand for the three months ended March 31, 2025, compared to a comprehensive income of $5,603 thousand in the prior year[21] - For the three months ended March 31, 2025, Peakstone Realty Trust reported a net loss of $53,401,000 compared to a net income of $5,470,000 for the same period in 2024[27] - Total NOI for the three months ended March 31, 2025, was $48,200,000, a slight increase of 1.2% from $47,627,000 in the same period of 2024[121] Asset and Equity Changes - Total assets decreased from $2,676,232 thousand as of December 31, 2024, to $2,595,197 thousand as of March 31, 2025, representing a decline of approximately 3%[16] - The company’s total shareholders' equity decreased from $1,085,221 thousand as of December 31, 2024, to $1,019,152 thousand as of March 31, 2025, a decline of about 6%[16] - As of March 31, 2025, total real estate assets net amounted to $2,054,790,000, down from $2,264,048,000 as of December 31, 2024[125] Expenses and Losses - Total expenses surged to $94,861 thousand for the three months ended March 31, 2025, compared to $46,237 thousand in the prior year, indicating an increase of approximately 105%[18] - The company incurred a real estate impairment provision of $51,957 thousand for the three months ended March 31, 2025, compared to $1,376 thousand in the same period of 2024[18] - General and administrative expenses decreased to $8,553,000 in Q1 2025 from $9,680,000 in Q1 2024, a reduction of 11.6%[125] Cash and Debt Management - Cash and cash equivalents increased from $146,514 thousand as of December 31, 2024, to $204,017 thousand as of March 31, 2025, reflecting a growth of approximately 39%[16] - Debt remained relatively stable, with a slight increase from $1,344,619 thousand as of December 31, 2024, to $1,345,686 thousand as of March 31, 2025[16] - As of March 31, 2025, the total consolidated debt of Peakstone Realty Trust is $1,360,326,000, with a weighted average effective interest rate of 4.41%[5] - The total secured debt amounts to $360,326,000, with the largest component being the BOA II Loan at $250,000,000, maturing in May 2028[5] - The total unsecured debt is $1,000,000,000, which includes a revolving loan of $465,000,000 maturing in July 2028[5] Real Estate and Portfolio Management - Peakstone Realty Trust's portfolio consisted of 101 properties, including 96 operating properties and five redevelopment properties, as of March 31, 2025[32] - The Company had no acquisitions of real estate during the three months ended March 31, 2025, and March 31, 2024[47] - The Company disposed of real estate with a total gross sales price of $34,031 during the three months ended March 31, 2025, resulting in a loss of $479, contrasting with a total gross sales price of $79,525 and a gain of $9,177 for the same period in 2024[48] Shareholder Information - The company declared dividends to common shareholders totaling $8,318,000 in Q1 2025, slightly up from $8,193,000 in Q1 2024[28] - The company declared a cash dividend of $0.225 per common share for the quarter ended March 31, 2025, payable on April 17, 2025[126] - As of March 31, 2025, there were 871,916 unvested restricted shares, reflecting an increase from 392,566 as of December 31, 2024[92] Future Outlook and Strategies - The company is transitioning to an industrial REIT, focusing on growth in the industrial outdoor storage subsector and divesting non-core assets[30] - The company plans to use interest rate hedging instruments to mitigate exposure to interest rate fluctuations[219] - An increase of 100 basis points in interest rates could decrease future earnings and cash flows by approximately $4.6 million annually[221]