Peakstone Realty Trust · NYSE:PKST
Peakstone Realty Trust — Griffin Capital Essential Asset REIT — Q3 2019 Earnings Presentation
25 slides from Peakstone Realty Trust's earnings presentation, Nov 12, 2019
Slide 1: Griffin Capital Essential Asset REIT Third Quarter 2019 Summary of Earnings Results and Portfolio Update
FEATURING NEXTNAV™ THIRD QUARTER 2019 Griffin Capital Essential Asset® REIT Summary of Earnings Results and Portfolio Update THIS IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY THE SECURITIES DESCRIBED HEREIN. AN OFFERING IS MADE ONLY BY A PROSPECTUS. A PROSPECTUS MUST BE MADE AVAI
Slide 2: Conference Call Agenda
Conference Call Agenda TOPICS SPEAKER • Highlights Michael Escalante CEO & President • Portfolio Update Michael Escalante CEO & President • Financial Performance Review Javier Bitar Chief Financial Officer • Questions & Answers Michael Escalante Javier Bitar CEO & President Chief Financial Officer 2
Slide 3: Highlights
Highlights Michael Escalante, CEO & President
Slide 4: Key Highlights
Key Highlights Total revenue increased 14.5% in the current quarter as compared to the third quarter ended September 30, 2018. Executed 211,048 SF of new leases, including one 12-year lease for 79,900 square feet and four 10-year leases totaling 92,500 square feet. Leases commenced during the quarte
Slide 5: Portfolio Update
Portfolio Update Michael Escalante, CEO & President
Slide 6: Portfolio Characteristics
Portfolio Characteristics September 30, 2019 Total Enterprise Value1 $4.7 billion Acquisition Value2 $4.2 billion Number of Properties2 101 Number of Buildings2 124 Size of Portfolio (square feet) 27.1 million Occupied/Leased (based on portfolio square feet)3 89.8% / 91.6% Percentage of Cash Flow fr
Slide 7: Diversified National Portfolio
Diversified National Portfolio As of September 30, 2019 The portfolio is comprised of 101 properties located in 25 states and 118 leases throughout the U.S. Note: Logos shown are those of tenants, lease guarantors, or non-guarantor parent companies at our properties. 7
Slide 8: Portfolio Concentration
Portfolio Concentration As of September 30, 2019 Tenant Business Diversity 1 (By % of Net Rent) Capital Goods2 13.6% Our management makes a Health Care Equipment & Services 9.5% Insurance 7.8% conscious effort to achieve Consumer Services 7.8% Retailing 7.1% diversification by tenant industry Divers
Slide 9: Portfolio Concentration (cont'd)
Portfolio Concentration (cont’d) As of September 30, 2019 Geographic Distribution Asset Allocation (By % of Net Rent) (By % of Net Rent) California 11.3% All Others Office 23.9%1 Texas 83.0% 10.5% South Carolina 4.0% Ohio North Carolina 10.2% 4.0% Industrial Colorado 17.0% 5.0% Arizona New Jersey 9.
Slide 10: Portfolio Concentration (cont'd)
Portfolio Concentration (cont’d) As of September 30, 2019 Credit Characteristics (By % of Net Rent) Investment Grade 61.5%1 Unrated Credit 4.9% Subinvestment Grade 33.6% 1. Investment grade descriptions are those of either tenants, guarantors, and/or non-guarantor parents with investment grade ratin
Slide 11: Strong Tenant Profile: Top Tenants
Strong Tenant Profile: Top 10 Tenants As of September 30, 2019 Top Tenants % of Portfolio1 Ratings 2 3 3.5 BBB+ 3.4 HY1 4 3.1 A- 3.1 BBB+ 2.9 BB+ 2.6 AA 2.5 B 4 2.5 IG10 1. Based on net rental payment 12-month period subsequent to September 30, 2019. 2. Represents S&P ratings of tenants, guarantors,
Slide 12: Asset Management: Third Quarter 2019 New Lease Activity
Asset Management: Third Quarter 2019 New Lease Activity Tenant Name EAN Holdings, LLC Tenant Name Keyence Corporation of Tenant Name Genuine Parts Company America Property Address 500 Rivertech Property Address 500 Rivertech Property Address 4300 Wildwood Parkway 500 Naches Avenue SW 500 Naches Aven
Slide 13: Asset Management: Third Quarter 2019 (cont'd)
Asset Management: Third Quarter 2019 (cont’d) New Lease Activity Tenant Name Bohler Engineering Inc. Tenant Name Control Point Associates, Tenant Name Whitestone Associates, Inc. Inc. Property Address 30 Independence Property Address 30 Independence Property Address 30 Independence Warren, NJ Warren
Slide 14: Asset Management: Third Quarter 2019 (cont'd)
Asset Management: Third Quarter 2019 (cont’d) New Lease Activity Tenant Name Cooperative Strategies, Tenant Name Keller Mortgage LLC Property Address The Innovation Campus Property Address The Innovation Campus at Lakehurst (Building III) at Lakehurst (Building III) 4675 Lakehurst Parkway 4675 Lakeh
Slide 15: Asset Management: Acquisition
Asset Management: Third Quarter 2019 (cont’d) Acquisition Tenant Property Name Square Feet Comments • Property is fully leased to McKesson Corporation through May 31, 5801 North Pima Road 124,879 2029. Purchase of the leasehold interest was completed on Scottsdale, AZ September 30, 2019 for $37.7 mi
Slide 16: Asset Management: Property Disposition
Asset Management: Third Quarter 2019 (cont’d) Property Disposition Tenant Property Address Square Feet Comments • Property was 95% leased after a 30,500 square foot expansion by 7601 Technology Way 191,368 existing tenant Zoom Video into 58,800 square feet, plus an extension of Denver, CO the lease
Slide 17: Lease Expirations, Terminations and Properties on the Market
Asset Management: Third Quarter 2019 (cont’d) Lease Expirations, Terminations and Properties on the Market Lease Expiration or Tenant Property Address Square Feet Comments Termination Date • Tenant dispersed production previously performed at this plant 2200 Channahon Road into other existing plants
Slide 18: Financial Performance Review
Financial Performance Review Javier Bitar, Chief Financial Officer
Slide 19: Capital Structure Overview
Capital Structure Overview Enterprise Value Common Equity $2.2 billion OP Units 0.3 billion Common Equity Total Equity 2.5 billion Secured Debt 1.0 billion Unsecured Net Debt1 1.1 billion Preferred Equity Total Net Debt 1 2.1 billion Preferred Equity 0.1 billion Total Enterprise Value $4.7 billion R
Slide 20: Financial Performance
Financial Performance (in thousands, except per share amounts) Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Total Revenue $ 97,435 $ 85,041 $ 277,276 $ 251,431 Net income attributable to common stockholders per share, basic and diluted $ 0.04 $ 0.02 $ 0.13 $ 0
Slide 21: Determination of NAV
Determination of NAV (in thousands, except per share amounts) Set forth below are the components of our daily NAV as of September 30, 2019 and June 30, 2019, calculated in accordance with our valuation procedures (in thousands, except share and per share amounts): September 30, 2019 June 30, 2019 Gr
Slide 22: Performance Report
Performance Report Total Return as of September 30, 2019(%)1 Excluding Sales Load2 Including Sales Load Quarter Ended Since Inception Since Inception Share Class/ Index Ticker Inception Date3 September 30, 2019 (Annualized) (Annualized) Class T ZGEATX 9/20/2017 1.45% 5.95% 4.10% Class S ZGEASX 9/20/
Slide 23: Debt Maturity Schedule
Debt Maturity Schedule (including effect of interest rate swap) As of September 30, 2019 (Dollars in Thousands) $600,000 $516,7201 (26.6%) $500,000 $415,8352 (21.5%) $375,0005 $400,000 (19.3%) $250,0006 $300,000 (12.9%) $150,0004 $126,9703 $200,000 (7.7%) $106,2207 (Thousands) (6.5%) (5.5%) $100,000
Slide 24: Questions & Answers
Questions & Answers Michael Escalante, CEO & President | Javier Bitar, Chief Financial Officer
Slide 25: Thank you for your participation
1520 E. Grand Avenue 310.469.6100 El Segundo, CA 90245 www.gcear.com Thank you for your participation. For more information visit www.gcear.com Griffin Capital Securities, Member FINRA/SIPC, is the dealer manager for the Griffin Capital Essential Asset REIT, Inc. offering. © 2019 Griffin Capital Sec
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