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Peakstone Realty CEO Defends Public Listing, Discusses Discount to NAV of Share Price

Peakstone Realty Trust (NYSE: PKST), formerly a publicly registered non-traded real estate investment trust known as Griffin Realty Trust, hosted a webcast yesterday to discuss their recent listing on the New York Stock Exchange and the dramatic discount to net asset value at which the stock has traded.

As The DI Wire previously reported, Peakstone debuted on the New York Stock Exchange last week. At the close of trading shares finished at $11.65, up 45.62% after starting the trading day at $8.00. Shares traded at $36.80 at the close of the trading day yesterday.

Prior to its debut on the NYSE, Peakstone’s most recently reported estimated net asset value per share was $66.87, following the nine-for-one reverse stock split executed by the company on March 8, 2023.

Peakstone CEO Michael Escalante explained during the webinar that the NYSE’s designated market makers work to match buy orders and sell orders, and when a match occurs, a trade happens. He explained that the company is not a party to the transaction. Instead, the transaction is between a willing buyer and a willing seller.

“The listing, among other things, provides investors access to liquidity and positions the company for long-term growth,” said Escalante. “The listing is not an IPO. The company did not issue new shares.”

According to Escalante, management has not sold any shares since the effectiveness of the listing and “has no current plans to sell its shares.”

The company also notes that since the NAV was last updated, the capital markets and the specific market for office properties has negatively changed.

Previously, the company announced its plan to pursue a listing of the company’s common shares on the NYSE in February 2023 and changed its name in March 2023.

Peakstone Realty Trust is an internally managed, publicly registered real estate investment trust that owns and operates predominately single-tenant industrial and office properties. As of March 10, 2023, Peakstone’s portfolio consisted of real estate assets totaling 19 million square feet across 24 states.

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