Peakstone Realty Trust(US:PKST)2025-11-05 21:13Financial Performance - Rental income for the three months ended September 30, 2025, was $25,800 thousand, down from $26,731 thousand in the same period of 2024, a decrease of about 3.5%[19] - The net loss attributable to common shareholders for the three months ended September 30, 2025, was $3,499 thousand, compared to a loss of $24,395 thousand in the same period of 2024, showing an improvement of about 86%[19] - The company reported a net income of $3,780 thousand for the three months ended September 30, 2025, contrasting with a net loss of $26,549 thousand in the same period of 2024[21] - For the nine months ended September 30, 2025, the net loss was $336.381 million, compared to a net loss of $25.180 million for the same period in 2024[28] - The company reported a significant net loss of $265,300,000 for the quarter ending June 30, 2025[25] - Total comprehensive loss for the quarter ending June 30, 2024, was $19,195,000[23] Assets and Liabilities - Total assets decreased from $2,676,232 thousand as of December 31, 2024, to $1,986,374 thousand as of September 30, 2025, representing a decline of approximately 26%[16] - The total liabilities decreased from $1,524,210 thousand as of December 31, 2024, to $1,209,518 thousand as of September 30, 2025, a reduction of approximately 21%[16] - As of September 30, 2025, the company's total gross investment in real estate (excluding discontinued operations) was $1,263,937,000, down from $1,493,143,000 as of December 31, 2024[62] - The total real estate related to discontinued operations was $403,539,000 as of September 30, 2025, down from $995,152,000 as of December 31, 2024, indicating a reduction of about 59%[154] - The total real estate assets for industrial real estate net was $1,066,052,000 as of September 30, 2025, down from $1,100,936,000 as of December 31, 2024, a decrease of about 3%[154] Cash Flow and Investments - Cash and cash equivalents increased from $146,514 thousand as of December 31, 2024, to $326,085 thousand as of September 30, 2025, reflecting a growth of approximately 122%[16] - The net cash provided by operating activities for continuing operations was $2.715 million, an improvement from a net cash used of $1.608 million in 2024[28] - The company reported a net cash provided by investing activities of $450.282 million, significantly higher than $102.929 million in 2024[30] - The principal pay down of indebtedness for the credit facility was $200 million, compared to $10 million in the previous year[30] Real Estate Operations - The company is executing a strategic transition to an industrial-only real estate investment trust (REIT), focusing on growth in the industrial outdoor storage (IOS) sector[32] - The company completed the sale of 11 Office Discontinued Operations Properties during the nine months ended September 30, 2025[47] - The company acquired three industrial outdoor storage properties for a total purchase price of $57,106,000 during the three months ended September 30, 2025[65] - The company disposed of nine properties for a total gross sales price of $233,415,000 during the nine months ended September 30, 2025, resulting in a gain of $6,407,000[67] Shareholder Information - As of September 30, 2024, Peakstone Realty Trust reported total shareholders' equity of $1,132,171,000, with common shares totaling 36,377,254[23] - The company declared dividends to common shareholders amounting to $8,284,000 during the quarter ending June 30, 2024[23] - The company declared a cash dividend of $0.10 per common share for the quarter ended September 30, 2025, payable on or about October 17, 2025[155] - The Company had 36,790,867 common shares outstanding as of September 30, 2025, following its listing on the New York Stock Exchange on April 13, 2023[107][108] Debt and Interest Rates - The total consolidated debt as of September 30, 2025, was $1,050.8 million, down from $1,360.3 million as of December 31, 2024, reflecting a reduction of 22.7%[85] - The weighted average effective interest rate for the company's total debt was 5.46% as of September 30, 2025[85] - The Company has interest rate swaps with a notional amount of $550 million, effective from July 1, 2025, to July 1, 2029, converting SOFR to a weighted average fixed rate of 3.58%[96] - An increase of 100 basis points in interest rates would decrease future earnings and cash flows by approximately $1.9 million annually, considering the effect of interest rate swaps[272] Impairments and Expenses - The company experienced a significant real estate impairment provision of $18,195 thousand for the nine months ended September 30, 2025, compared to $50,774 thousand in the same period of 2024[19] - Total expenses for the nine months ended September 30, 2025, were $390,788,000, significantly higher than $50,493,000 in 2024, primarily due to a real estate impairment provision of $345,492,000[50] - The company recorded real estate impairments of $25.6 million related to eight Office Discontinued Operations Properties during the three months ended September 30, 2025, due to shortened anticipated hold periods and estimated selling prices[76] Other Financial Metrics - The accumulated deficit as of September 30, 2024, was $850,992,000, reflecting an increase from $826,597,000 as of June 30, 2024[23] - The fair value of total secured debt as of September 30, 2025, was $242,675, down from $250,766 as of December 31, 2024[106] - The Company recognized $70.6 million in lease income related to operating lease payments for the nine months ended September 30, 2025, compared to $74.1 million for the same period in 2024, indicating a decrease of 6.5%[133]