Peakstone Realty Trust(PKST) - 2025 Q3 - Quarterly Results

Revenue and Income - Revenue from continuing operations was approximately $25.8 million, a decrease from $26.7 million in the same quarter last year[12]. - Net income attributable to common shareholders was approximately $3.5 million, or $0.09 per share, compared to a net loss of approximately $(24.4) million, or $(0.67) per share, for the same quarter last year[13]. - 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%[32]. - Net income for the three months ended September 30, 2025, was $3,780, compared to a net loss of $26,549 in the same period of 2024[42]. - The company reported a net income from discontinued operations of $10,813 for Q3 2025, compared to $9,583 in Q3 2024, showing a year-over-year increase of approximately 12.9%[53]. Funds from Operations - Core Funds from Operations (Core FFO) was approximately $19.1 million, or $0.48 per share, down from $24.0 million, or $0.61 per share, in the same quarter last year[14]. - Adjusted Funds from Operations (AFFO) was approximately $18.6 million, or $0.47 per share, compared to $25.7 million, or $0.65 per share, for the same quarter last year[14]. - Funds from Operations (FFO) for the three months ended September 30, 2025, were $18,312 thousand, down from $23,060 thousand in 2024, a decrease of about 20.5%[38]. - Core Funds from Operations (Core FFO) for the three months ended September 30, 2025, were $19,057 thousand, compared to $23,959 thousand in 2024, reflecting a decline of approximately 20.5%[38]. - Adjusted Funds from Operations (AFFO) for the three months ended September 30, 2025, were $18,637 thousand, down from $25,689 thousand in 2024, a decrease of about 27.4%[38]. Expenses and Liabilities - Total expenses for the three months ended September 30, 2025, were $24,648 thousand, significantly lower than $68,880 thousand in the same period of 2024, indicating a reduction of approximately 64%[32]. - 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 about 20.6%[30]. - The Company ended the quarter with a liquidity of $438.0 million, including cash and cash equivalents of $326.1 million[19]. Asset and Equity Changes - 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%[30]. - Shareholders' equity decreased from $1,152,022 thousand as of December 31, 2024, to $776,856 thousand as of September 30, 2025, representing a decline of approximately 32.5%[30]. Operational Performance - Same Store Cash Net Operating Income (Same Store Cash NOI) increased by 3.7% to approximately $11.4 million compared to the same quarter last year[16]. - Total Net Operating Income (NOI) increased to $22,520 for Q3 2025, up from $20,738 in Q3 2024, representing a growth of approximately 8.5%[42]. - Cash NOI for the same store portfolio was $11,390 in Q3 2025, compared to $10,986 in Q3 2024, indicating an increase of about 3.7%[42]. - EBITDA for Q3 2025 was reported at $41,848, while EBITDAre was $36,045, reflecting the company's operational performance[51]. - Adjusted EBITDAre for Q3 2025 stood at $33,397, demonstrating the company's ability to manage expenses effectively[51]. Real Estate Transactions - The Company executed several Industrial Outdoor Storage (IOS) leases that will add approximately $1.1 million of incremental IOS ABR, with weighted average releasing spreads of 116% on a cash basis[9]. - The Company sold eight office properties totaling approximately 1.2 million square feet for approximately $247.5 million during the quarter[15]. - Rental income from discontinued operations was $25,225 in Q3 2025, down from $28,229 in Q3 2024, a decrease of approximately 7.1%[53]. - Total expenses related to discontinued operations increased to $37,330 in Q3 2025, compared to $17,120 in Q3 2024, primarily due to real estate impairment provisions[53]. - The company recorded a real estate impairment provision of $25,604 in Q3 2025, compared to none in Q3 2024, indicating a significant change in asset valuation[53].