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Peakstone REIT Reports Results Following One-Year Anniversary as Listed Company

It’s been just over a year since Peakstone Realty Trust (NYSE: PKST) – formerly a publicly registered non-traded real estate investment trust known as Griffin Realty Trust – listed on the New York Stock Exchange. In its first quarter 2024 highlights, the company highlighted its strengthened balance sheet and enhanced portfolio composition.

“As we mark our first-year anniversary as a listed company, we are proud to reaffirm our commitment to execute on our strategic plan aimed at bolstering our balance sheet and optimizing our portfolio to further align with our long-term growth objectives,” said Michael Escalante, chief executive officer.

“To this end, during the first quarter, we progressed the elimination of our other segment by closing on the sale of three assets in this segment and securing several lease extensions with strong releasing spreads which sets the stage for successful sales of these assets. In the evolving market, this disposition and leasing activity demonstrates the strength of our team and its ability to enhance the value of our portfolio,” said Escalante.

As The DI Wire previously reported, the close of trading shares on PKST’s first public day finished at $11.65, up 45.62% after starting the trading day at $8.00. Shares traded at $13.75 at the close of trading yesterday.

PKST, a real estate investment trust that owns and operates mainly single-tenant industrial and office properties, started its public journey with a dramatic discount to net asset value. Prior to listing, PKST’s last reported estimated NAV was $66.87, following the nine-for-one reverse stock split executed by the company on March 8, 2023.

As of March 31, 2024, PKST reported: revenue of $59.2 million, an 11.64% decrease from last year’s $67 million. The company attributed the change in revenue to the “execution of strategic dispositions.”

PKST noted net income of approximately $5.5 million (net income attributable to common shareholders of approximately $5 million, or $0.14 per basic and diluted share); and same store cash net operating income of approximately $44.8 million, a 0.7% increase compared to the same quarter in 2023.

Michael Escalante

“We remain committed to positioning the company for sustained success and value creation in the years ahead,” added Escalante.

Other end-of-March 2024 highlights included the following.

  • PKST completed over 241,000 square feet of lease renewals (in Las Vegas; Beavercreek, Ohio; and Concord, N.C.) at favorable cash releasing spreads of 27% and 13%, respectively.
  • It sold four properties for approximately $80 million.
  • It paid a dividend of $0.225 per common share.
  • PKST closed the quarter with $436 million in cash on hand and $160 million of available undrawn capacity under the revolving credit facility, for total liquidity of nearly $600 million.
  • The company’s wholly owned portfolio consisted of 67 properties – 19 industrial, 34 office, 14 other – that were 96.3% leased and located in 22 states.

PKST’s first year wasn’t without drama. Last December, it announced the termination of Louis K. Sohn, formerly an executive vice president, without cause. No details regarding the termination were provided.

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 2024, PKST’s portfolio consisted of 67 real estate assets across 22 states.

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