Peakstone Realty Trust (PKST) AI Stock Analysis

• Market Cap: $499.99M
• Dividend Yield: 6.7%
• Average Volume (3M): 180.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.89
• Revenue Growth: -6.69%
• EPS Growth: -118.66%
• Country: US
• Employees: 38
• Sector: Real Estate
• Sector Strength: 50
• Industry: REIT - Diversified
• EPS (TTM): -7.22
• Shares Outstanding: 36,790,867
• 10 Day Avg. Volume: 150,387
• 30 Day Avg. Volume: 180,781
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.17
• Enterprise Value/Revenue: 7.08
• Enterprise Value/Gross Profit: 9.81
• Enterprise Value/Ebitda: 11.67
• 1Y Price Target: $16.00
• Price Target Upside: 17.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 58 Neutral
• Price Target: $14.00 ▲(3.02% Upside)

Peakstone Realty Trust's overall stock score reflects significant financial challenges, including declining revenues and high leverage. However, strategic progress in transitioning to an industrial REIT and strong cash flow conversion provide some optimism. Technical indicators suggest a neutral to positive short-term trend, while the high dividend yield may appeal to income investors despite the company's current unprofitability.

Positive Factors

Balance Sheet and Dividend

The company's balance sheet is in a stronger shape with leverage at 6.4x, and the dividend has been right-sized to align with current earnings, providing a more sustainable capital structure.

Occupancy and Lease Term

PKST's office portfolio is 99% leased with a weighted average lease term of 6.2 years, which is inconsistent with the distressed valuation the market is applying.

Stock Upgrade

The analyst is upgrading PKST to Buy from Hold due to significant mispricing in the shares, especially concerning the suburban office portfolio.

Negative Factors

Asset Sales and Risk

PKST has sold more challenging office assets, significantly reducing risk, and is accelerating the sale of remaining suburban office assets.

Market Valuation Concerns

The market is effectively valuing these assets at just $50/sf, implying a 47% cap rate, despite the portfolio being 99% leased with a weighted average lease term (WALT) of 6.2 years.

Peakstone Realty Trust Business Overview & Revenue Model

Company Description

Griffin 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 Money

Peakstone Realty Trust generates revenue primarily through the leasing of its properties to a variety of tenants. The company earns rental income from long-term lease agreements, which provide a steady cash flow. Additionally, PKST may engage in property sales to realize capital gains, enhancing overall profitability. The company's revenue is also influenced by factors such as occupancy rates, rental rate trends, and effective cost management. Strategic partnerships with property management firms and real estate developers can further optimize operations and expand the company's property portfolio, contributing to its earnings.

Peakstone Realty Trust Financial Statement Overview

Summary

Peakstone Realty Trust faces significant financial challenges with declining revenues and profitability, reflected in a negative net profit margin and revenue growth rate. High leverage poses additional risks, although operational efficiency is maintained with positive EBIT and EBITDA margins. Cash flow generation is strong, with a good conversion of net income to cash flow, but declining free cash flow growth is a concern.

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	223.89M	228.07M	254.28M	416.49M	459.87M	397.45M
Gross Profit	161.52M	184.35M	89.65M	326.72M	357.37M	292.22M
EBITDA	135.72M	146.76M	-427.27M	282.88M	310.30M	234.93M
Net Income	-326.36M	-10.43M	-550.58M	-401.67M	11.33M	-4.25M
Balance Sheet
Total Assets	2.19B	2.68B	2.79B	3.63B	5.27B	4.15B
Cash, Cash Equivalents and Short-Term Investments	264.39M	146.51M	418.74M	233.18M	186.14M	168.95M
Total Debt	1.34B	1.44B	1.50B	1.53B	2.58B	2.19B
Total Liabilities	1.41B	1.52B	1.59B	1.65B	2.77B	2.41B
Stockholders Equity	740.31M	1.09B	1.11B	1.81B	2.28B	1.51B
Cash Flow
Free Cash Flow	53.93M	94.66M	89.15M	-999.13M	181.49M	163.01M
Operating Cash Flow	53.93M	94.66M	89.15M	152.68M	204.98M	164.54M
Investing Cash Flow	-86.50M	-215.84M	308.56M	1.10B	-62.81M	-24.97M
Financing Cash Flow	-195.75M	-125.62M	-234.64M	-1.20B	-159.34M	-49.52M

Peakstone Realty Trust Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PKST, the sentiment is Positive. The current price of 13.59 is above the 20-day moving average (MA) of 12.68, above the 50-day MA of 13.27, and above the 200-day MA of 11.99, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 57.69 is Neutral, neither overbought nor oversold. The STOCH value of 69.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PKST.

Peakstone Realty Trust Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OLP	76 Outperform	$510.62M	18.28	9.16%	7.76%	5.57%	-14.50%
AHH	67 Neutral	$739.86M	79.35	3.55%	9.43%	-25.73%	―
Sector *	63 Neutral	$7.09B	13.58	-0.36%	6.87%	4.08%	-25.24%
GOOD	59 Neutral	$702.52M	36.70	8.51%	9.17%	5.85%	―
PKST	58 Neutral	$499.99M	―	-35.52%	6.70%	-6.69%	-118.66%
BRSP	56 Neutral	$772.16M	―	-2.41%	10.77%	-14.73%	79.63%
CTO	54 Neutral	$573.81M	36.87	-5.66%	8.85%	22.26%	-328.46%

Peakstone Realty Trust Corporate Events

Peakstone Realty Trust Completes Property Sales for $177M

On September 3, 2025, Peakstone Realty Trust announced the completion of the sale of two office properties in Birmingham, AL and Greenwood Village, CO, along with one industrial property in Sparks Glencoe, MD, for approximately $177 million. This move is part of the company’s strategic shift towards becoming an industrial REIT, with industrial annualized base rent now representing over 50% of their total. The transactions have improved the company’s leverage, aligning it with their target level, and are seen as a step towards delivering growth and value for shareholders.