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Peakstone Realty Trust (PKST)
NYSE:PKST
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Peakstone Realty Trust
(NYSE:PKST)
Rating:56Neutral
Price Target:
$14.00
▲(1.52%Upside)
Peakstone Realty Trust (PKST) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$507.10M
Dividend Yield6.41%
Average Volume (3M)131.99K
Price to Earnings (P/E)―
Beta (1Y)1.01
Revenue Growth-8.41%
EPS Growth88.62%
CountryUS
Employees38
SectorReal Estate
Sector Strength57
IndustryREIT - Diversified
Share Statistics
EPS (TTM)-1.35
Shares Outstanding36,772,846
10 Day Avg. Volume120,703
30 Day Avg. Volume131,991
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)0.50
Price to Sales (P/S)0.00
P/FCF Ratio5.15
Enterprise Value/Market Cap3.42
Enterprise Value/Revenue1.87
Enterprise Value/Gross Profit10.71
Enterprise Value/Ebitda4.81
Forecast
1Y Price Target
$14.67Price Target Upside6.38% Upside
Rating ConsensusHold
Number of Analyst Covering3
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 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 Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 25.14%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call conveyed a positive sentiment overall, with significant achievements in strategic transitions, successful asset sales, and improved financial metrics. Despite reporting a net loss and challenges in reaching target leverage, the company's strategic focus and execution in the industrial sector are promising.Q1-2025 Updates
Positive Updates
Strategic Transition to Industrial REIT
Peakstone Realty Trust continues to make progress in transitioning to an industrial REIT, with a focus on the industrial outdoor storage (iOS) subsector, increasing industrial segment ABR by $2,400,000 quarter over quarter.
Successful Office Asset Sales
Closed $144,000,000 of office asset sales year to date, with office dispositions continuing to align with strategic goals. Completed the sale of two properties for $34,000,000 and three additional properties for $110,000,000.
Leasing Achievements
Fully leased the largest iOS redevelopment property in Everett, Washington, contributing $1,700,000 of incremental ABR to the industrial segment. New lease in Mableton, Georgia added $300,000 in ABR.
Strong Financial Metrics
Total revenue reached approximately $57,000,000, and cash NOI approximately $46,000,000. Same store cash NOI increased 5.8% for the industrial segment and 3.1% for the office segment.
Improved Leverage Position
Reduced net debt to adjusted EBITDAre to 6.8 times after paying down $100,000,000 of revolver, with total liquidity of approximately $330,000,000.
Negative Updates
Net Loss
Reported a net loss attributable to common shareholders of approximately $49,400,000 or $1.35 per share, including a $52,000,000 noncash impairment related to potential sales of assets in the office segment.
Challenges in Achieving Target Leverage
While leverage improved to 6.8 times, the company's target leverage remains in the six times range or below, indicating ongoing efforts are needed to reach desired levels.
Company Guidance
In the Peakstone Realty Trust's First Quarter 2025 earnings call, the company provided detailed guidance on its ongoing strategic transition to an industrial real estate investment trust (REIT) with a focus on the industrial outdoor storage (iOS) subsector. Key metrics highlighted include a $2.4 million increase in industrial segment Annualized Base Rent (ABR) quarter over quarter, driven by a 10% rise in ABR from iOS properties. The company also completed approximately $144 million in office asset sales year-to-date, advancing their portfolio realignment efforts. Industrial segment ABR represented 41% of total ABR at quarter end and 43% on a pro forma basis. The company signed a nine-point-eight-year lease for its largest iOS redevelopment property in Everett, Washington, contributing approximately $1.7 million of incremental ABR with 8% annual rent escalations. Financial results for the quarter showed total revenue at $57 million, cash NOI at $46 million, and a net loss of $49.4 million, which included a $52 million non-cash impairment related to office asset sales. Pro forma metrics after office dispositions indicated total debt at approximately $1.26 billion, with a net debt to adjusted EBITDAre ratio of 6.8 times. The company also maintained a balanced approach towards future acquisitions and office asset dispositions to enhance shareholder value and reduce leverage.Peakstone Realty Trust Financial Statement Overview
Summary
Peakstone Realty Trust faces financial challenges with declining revenues and negative profitability, as indicated by a negative net income and decreasing EBIT and EBITDA margins. Despite these challenges, the company maintains moderate leverage and positive cash flow, which provides some stability.Income Statement
The income statement reveals declining revenue with a negative net income, indicating challenges in profitability. Gross profit margin is relatively stable, but net profit margin is negative due to consistent losses. EBIT and EBITDA margins have decreased, reflecting operational inefficiencies. Revenue growth has shown volatility with recent declines, suggesting potential challenges in maintaining consistent revenue streams.35
Negative
Balance Sheet
The balance sheet shows a moderate debt-to-equity ratio, suggesting manageable leverage levels. However, the declining stockholders' equity and total assets indicate potential concerns regarding asset management. Return on equity is negative due to net losses, but the equity ratio remains moderate, showcasing some level of financial stability despite challenges.55
Neutral
Cash Flow
Cash flow analysis indicates a positive trend in operating and free cash flows, which is a strength. The operating cash flow to net income ratio is favorable, reflecting good cash generation from operations. However, the free cash flow to net income ratio is skewed due to negative net income. Free cash flow growth rate is positive, signaling effective cash management, albeit with potential risks from negative income.65
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 228.07M | 254.28M | 416.49M | 459.87M | 397.45M |
| Gross Profit | 184.35M | 89.65M | 326.72M | 357.37M | 302.40M |
| EBITDA | 145.67M | -427.27M | 271.94M | 306.30M | 254.32M |
| Net Income | -10.43M | -550.58M | -401.67M | 11.50M | -4.04M |
Balance Sheet | |||||
| Total Assets | 2.68B | 2.79B | 3.63B | 5.27B | 4.15B |
| Cash, Cash Equivalents and Short-Term Investments | 146.51M | 391.80M | 233.18M | 168.62M | 168.95M |
| Total Debt | 1.44B | 1.50B | 1.53B | 2.58B | 2.19B |
| Total Liabilities | 1.52B | 1.59B | 1.65B | 2.77B | 2.41B |
| Stockholders Equity | 1.09B | 1.11B | 1.81B | 2.28B | 1.51B |
Cash Flow | |||||
| Free Cash Flow | 94.66M | 89.15M | -999.13M | 181.49M | 163.01M |
| Operating Cash Flow | 94.66M | 89.15M | 152.68M | 204.98M | 164.54M |
| Investing Cash Flow | -215.84M | 308.56M | 1.10B | -62.81M | -24.97M |
| Financing Cash Flow | -125.62M | -234.64M | -1.20B | -159.34M | -49.52M |
Peakstone Realty Trust Technical Analysis
Positive
13.79
Price Trends
12.97
Positive
12.35
Positive
11.96
Positive
Market Momentum
0.26
Positive
56.52
Neutral
45.38
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 13.79 is above the 20-day moving average (MA) of 13.67, above the 50-day MA of 12.97, and above the 200-day MA of 11.96, indicating a bullish trend. The MACD of 0.26 indicates Positive momentum. The RSI at 56.52 is Neutral, neither overbought nor oversold. The STOCH value of 45.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $500.56M | 17.13 | 9.57% | 7.89% | 1.82% | -1.03% | |
69 Neutral | $622.03M | 46.16 | 7.51% | 8.99% | 3.01% | ― | |
68 Neutral | $713.48M | 123.51 | 3.05% | 9.93% | -12.13% | -14.54% | |
64 Neutral | $6.77B | 15.25 | -1.98% | 7.08% | 4.47% | -23.75% | |
61 Neutral | $581.30M | 36.87 | -1.05% | 8.61% | 17.48% | -172.41% | |
57 Neutral | $640.57M | ― | -6.29% | 12.88% | -14.92% | -3.27% | |
56 Neutral | $507.10M | ― | -6.09% | 6.41% | -8.41% | 88.62% |
* Real Estate Sector Average
Performance Comparison
PKST
Peakstone Realty Trust
14.04
1.28
10.03%
CTO
CTO Realty Growth
17.34
-0.77
-4.25%
GOOD
Gladstone Commercial
13.35
-0.45
-3.26%
OLP
One Liberty Properties
22.82
-1.76
-7.16%
AHH
Armada Hoffler Properties
6.95
-4.19
-37.61%
BRSP
BrightSpire Capital
4.97
-0.59
-10.61%
Peakstone Realty Trust Corporate Events
Executive/Board ChangesShareholder Meetings
Peakstone Realty Trust Expands Long-Term Incentive Plan
Neutral
May 29, 2025
On May 28, 2025, Peakstone Realty Trust held its annual meeting where shareholders approved an amendment to increase the number of shares in the company’s long-term incentive plan by 2,000,000 shares. Additionally, the meeting saw the election of five trustees, approval of executive compensation, and ratification of Ernst & Young LLP as the independent accounting firm.
The most recent analyst rating on (PKST) stock is a Hold with a $13.00 price target. To see the full list of analyst forecasts on Peakstone Realty Trust stock, see the PKST Stock Forecast page.
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.