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Peakstone Realty Trust (PKST)
NYSE:PKST
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Peakstone Realty Trust
(NYSE:PKST)
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Rating:55Neutral
Price Target:
$14.00
▲(1.60% Upside)
The score is held back primarily by weak/volatile profitability, declining revenue, and elevated leverage, despite currently positive cash flow. The earnings call was a meaningful positive, highlighting strong industrial leasing performance, successful office dispositions, and debt reduction, while technical signals remain soft and valuation is supported mainly by the dividend rather than earnings.
Positive Factors
Strategic Transformation
The shift to an industrial-only REIT with a focus on the IOS sector positions Peakstone for long-term growth in a high-demand market, enhancing its competitive edge.
Debt Reduction
Significant debt reduction improves financial stability and flexibility, allowing for better capital allocation and reduced interest expenses.
Strong Leasing Performance
High occupancy and favorable leasing spreads indicate strong demand and effective asset management, supporting revenue stability and growth.
Negative Factors
Declining Revenue Growth
Significant revenue decline poses a risk to long-term profitability and may hinder the company's ability to invest in growth opportunities.
High Leverage
High leverage increases financial risk, potentially limiting the company's ability to weather economic downturns and invest in future growth.
Office Portfolio Challenges
Ongoing challenges in exiting the office sector could delay strategic goals and tie up capital that could be used for industrial investments.
Peakstone Realty Trust (PKST) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$508.82M
Dividend Yield5.44%
Average Volume (3M)195.53K
Price to Earnings (P/E)―
Beta (1Y)0.49
Revenue Growth-16.50%
EPS Growth-640.43%
CountryUS
Employees38
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)-0.18
Shares Outstanding36,790,867
10 Day Avg. Volume204,142
30 Day Avg. Volume195,529
Financial Highlights & Ratios
PEG Ratio0.39
Price to Book (P/B)0.37
Price to Sales (P/S)1.77
P/FCF Ratio4.25
Enterprise Value/Market Cap2.48
Enterprise Value/Revenue6.48
Enterprise Value/Gross Profit7.72
Enterprise Value/Ebitda-8.54
Forecast
1Y Price Target
$17.00Price Target Upside23.37% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Peakstone Realty Trust Business Overview & Revenue Model
Company DescriptionGriffin Capital Essential Asset REIT, Inc. America's Blue-Chip Landlord is a self-managed, publicly registered, non-traded REIT with a portfolio consisting primarily of single-tenant, business essential office and industrial properties throughout the United States, diversified by corporate credit, physical geography, product type, and lease duration. GCEAR's portfolio as of September 30, 2020, consisted of 99 office and industrial properties (122 buildings), totaling 27.1 million rentable square feet, located in 25 states, representing a total enterprise value of approximately $4.5 billion.
How the Company Makes MoneyPeakstone Realty Trust generates revenue primarily through rental income from its portfolio of commercial properties. The company leases space to tenants, collecting rent that serves as the core revenue stream. Additionally, PKST may earn income from property management fees, leasing commissions, and other ancillary services provided to its tenants. The company's revenue model is supplemented by capital appreciation of its real estate assets, which can be realized through property sales or refinancing. Strategic partnerships with local real estate firms and developers may also enhance its market presence and lead to acquisition opportunities, further contributing to its earnings.
Peakstone Realty Trust Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong growth in the industrial portfolio, successful office dispositions, and improved financial metrics, which were met with ongoing challenges in fully exiting the office sector and managing capital expenditures for IOS improvements. The company demonstrated effective debt reduction and strategic transformation towards an industrial focus.Q3-2025 Updates
Positive Updates
Industrial Portfolio Growth
Industrial assets now generate 60% of the company's ABR. The strategic transformation into an industrial-only REIT focused on growth in the industrial outdoor storage (IOS) sector continues to advance.
Successful Office Dispositions
As of October 31, 12 office properties were sold for approximately $363 million, reducing the portfolio to 12 remaining office properties. The company expects to complete the sale of a majority of these properties by the end of the year.
Strong Leasing Performance
The IOS operating portfolio reached 100% occupancy with weighted average re-leasing spreads of 116% on a cash basis and 120% on a GAAP basis. Notable transactions included an 8-year lease in Philadelphia and a 5.1-year lease in Houston.
Improved Financial Metrics
Total revenue from continuing operations was $25.8 million, net income attributable to common shareholders was $3.5 million or $0.09 per share, and same-store cash NOI increased by 3.7% compared to the same quarter last year.
Debt Reduction
Debt was reduced by approximately $450 million, improving total leverage to 5.4x on a pro forma basis. Subsequent to quarter end, an additional $240 million was paid down on the unsecured credit facility.
Negative Updates
Office Portfolio Challenges
The company still holds 12 remaining office properties and expects to complete sales by end of the year or early 2026. This indicates ongoing challenges in fully exiting the office sector.
Capital Expenditure for Improvements
Some IOS leases required landlord improvements, such as an 8-year lease in Philadelphia that will commence following the completion of landlord improvements.
Reporting Nuances
The 16 remaining office properties were classified as held for sale and reported as discontinued operations, which may complicate financial reporting and analysis.
Company Guidance
During Peakstone Realty Trust's third quarter 2025 earnings call, the company reported significant progress in its strategic transition to an industrial-only REIT with a strong focus on the industrial outdoor storage (IOS) sector. As of October 31, 2025, the industrial portfolio accounted for over 60% of Peakstone's annualized base rent (ABR). The company executed new leases and renewals in its IOS portfolio, achieving weighted average re-leasing spreads of 116% on a cash basis and 120% on a GAAP basis. The IOS operating portfolio was fully leased, and recent transactions in Philadelphia, Houston, and Norcross, Georgia, contributed to these positive results. Peakstone also made three IOS acquisitions totaling approximately $58 million, expanding its footprint in Atlanta, Port Charlotte, and Fort Pierce. The company continued office property dispositions, having sold 12 office properties for approximately $363 million as of October 31, with expectations to complete the sale of the remaining 12 office properties by early 2026. Financially, Peakstone reported total revenue of $25.8 million from continuing operations, with funds from operations (FFO) of $18.3 million and a core FFO of $19.1 million for the quarter. Additionally, the company reduced its debt by approximately $450 million, improving its leverage ratio to 5.4x on a pro forma basis, and maintained liquidity of $438 million.Peakstone Realty Trust Financial Statement Overview
Summary
Peakstone Realty Trust faces significant financial challenges, with a negative net profit margin and declining revenue growth. High leverage is a risk, although operational efficiency is maintained with positive EBIT and EBITDA margins. Cash flow conversion is strong, but declining free cash flow growth is concerning.Income Statement
Peakstone Realty Trust's income statement shows significant challenges with profitability. The TTM data indicates a negative net profit margin of -145.77%, reflecting substantial losses. Revenue has been declining, with a TTM revenue growth rate of -85.3%. However, the gross profit margin remains relatively strong at 72.14%, indicating efficient cost management. The EBIT and EBITDA margins are positive, suggesting operational efficiency, but the overall financial performance is hindered by declining revenues and net losses.Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 1.81 in the TTM, indicating significant leverage. This could pose risks if revenue continues to decline. The equity ratio is moderate, suggesting a balanced asset structure. However, the return on equity is negative, reflecting the company's inability to generate profits from its equity base. The financial stability is challenged by high leverage and negative returns.Cash Flow
Cash flow analysis shows a mixed picture. The TTM free cash flow growth rate is negative at -45.35%, indicating declining cash generation. However, the operating cash flow to net income ratio is strong at 6.12, suggesting that the company is generating cash despite net losses. The free cash flow to net income ratio is 1.0, indicating that all net income is being converted into free cash flow, which is positive for liquidity.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 194.73M | 228.07M | 254.28M | 416.49M | 459.87M | 390.93M |
| Gross Profit | 163.55M | 184.35M | 201.86M | 323.22M | 353.30M | 292.22M |
| EBITDA | -147.78M | 146.76M | -427.27M | -165.82M | 306.30M | 181.43M |
| Net Income | -298.47M | -10.43M | -550.55M | -401.67M | 11.50M | -4.25M |
Balance Sheet | ||||||
| Total Assets | 1.99B | 2.68B | 2.79B | 3.63B | 5.27B | 4.15B |
| Cash, Cash Equivalents and Short-Term Investments | 326.08M | 146.51M | 391.80M | 233.18M | 168.62M | 168.95M |
| Total Debt | 0.00 | 1.44B | 1.50B | 1.53B | 2.61B | 2.24B |
| Total Liabilities | 1.21B | 1.52B | 1.59B | 1.65B | 2.77B | 2.41B |
| Stockholders Equity | 741.12M | 1.09B | 1.11B | 1.81B | 2.28B | 1.51B |
Cash Flow | ||||||
| Free Cash Flow | 100.05M | 94.66M | 89.15M | -999.13M | 181.49M | 163.01M |
| Operating Cash Flow | 100.05M | 94.66M | 89.15M | 152.68M | 204.98M | 164.54M |
| Investing Cash Flow | 131.47M | -215.84M | 308.56M | 1.10B | -62.81M | -24.97M |
| Financing Cash Flow | -164.06M | -125.62M | -234.64M | -1.20B | -159.34M | -49.52M |
Peakstone Realty Trust Technical Analysis
Negative
13.78
Price Trends
14.03
Negative
13.61
Positive
13.03
Positive
Market Momentum
-0.04
Positive
41.45
Neutral
23.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PKST, the sentiment is Negative. The current price of 13.78 is below the 20-day moving average (MA) of 14.22, below the 50-day MA of 14.03, and above the 200-day MA of 13.03, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 41.45 is Neutral, neither overbought nor oversold. The STOCH value of 23.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PKST.
Peakstone Realty Trust Risk Analysis
Peakstone Realty Trust disclosed 63 risk factors in its most recent earnings report. Peakstone Realty Trust reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Peakstone Realty Trust Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $448.05M | 13.42 | 10.91% | 9.03% | 7.71% | -5.37% | |
69 Neutral | $588.85M | -14.25 | -5.80% | 8.56% | 23.84% | -312.04% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
63 Neutral | $440.80M | -17.60 | -4.39% | 5.74% | ― | ― | |
60 Neutral | $546.32M | 60.70 | 5.96% | 11.56% | 4.95% | -6.49% | |
58 Neutral | $147.24M | -53.52 | 0.37% | 8.15% | -0.59% | -160.22% | |
55 Neutral | $508.82M | -1.57 | -31.72% | 5.44% | -16.50% | -640.43% |
* Real Estate Sector Average
PKST
Peakstone Realty Trust
13.96
3.52
33.72%
CTO
CTO Realty Growth
18.27
0.41
2.30%
GOOD
Gladstone Commercial
11.26
-3.25
-22.41%
OLP
One Liberty Properties
20.88
-2.76
-11.66%
MDV
Modiv
14.49
1.22
9.19%
FVR
FrontView REIT, Inc.
16.02
0.02
0.12%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.