Peakstone Realty Trust initiated with a Buy at UBS

UBS initiated coverage of Peakstone Realty Trust (PKST) with a Buy rating and $15 price target The firm thinks the company’s adjusted funds from operations multiple of 7-times only values its Industrial assets. This ascribes no value to its Peakstone’s segment “despite elevated asset quality,” the analyst tells investors in a research note. Using a sum-of-parts analysis on an FFO basis, UBS computes Peakstone trades at a 4-times discount to where a portfolio of this quality should trade. It sees a catalyst in the sale of its vacant/noncore “Other” assets.