Peakstone Realty Trust · NYSE:PKST
Peakstone Realty Trust — Griffin Capital Essential Asset REIT — Q2 2019 Earnings Presentation
23 slides from Peakstone Realty Trust's earnings presentation, Aug 15, 2019
Slide 1: Griffin Capital Essential Asset REIT Summary of Earnings Results and Portfolio Update Q2 2019
FEATURING NEXTNAV™ Griffin Capital Essential Asset REIT Summary of Earnings Results and Portfolio Update Second Quarter 2019 Photo: Amazon Fulfillment | Pataskala, OH 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
Slide 2: Conference Call Agenda
Conference Call Agenda TOPIC SPEAKER Michael Escalante Highlights & Portfolio Characteristics CEO & President Michael Escalante Acquisition & Portfolio Update CEO & President Financial Performance Review Javier Bitar Chief Financial Officer Michael Escalante & Questions & Answers Javier Bitar 2
Slide 3: Highlights & Portfolio Characteristics
Highlights & Portfolio Characteristics Michael Escalante | CEO & President Photo: Shaw Industries | Savannah, Georgia
Slide 4: Key Highlights
Key Highlights • Completed merger between Griffin Capital Essential Asset REIT II, Inc. (the “REIT”) and Griffin Capital Essential Asset REIT, Inc. (“EA-1”) creating a $4.7 billion internally managed REIT. • The REIT subsequently changed its name to Griffin Capital Essential Asset REIT, Inc. • Signi
Slide 5: Portfolio Characteristics
Portfolio Characteristics June 30, 2019 December 31, 2018 Total Market Capitalization 1 $4.7 billion $3.5 billion Acquisition Value2 $4.2 billion $3.0 billion Number of Properties2 101 74 Number of Buildings2 124 89 Size of Portfolio (square feet) 27.2 million 19.9 million Occupied/Leased (based on
Slide 6: Acquisition and Portfolio Update
Acquisition and Portfolio Update MichaelPhoto: Shaw Industries Escalante| Savannah, Georgia | CEO & President Photo: Zebra Technologies | Lincolnshire, IL
Slide 7: Diversified National Portfolio
Diversified National Portfolio Portfolio as of June 30, 2019 The portfolio is comprised of 101 properties located in 25 states throughout the U.S. Logos shown are those of tenants, lease guarantors, or non-guarantor parent companies at our properties. 7
Slide 8: Portfolio Characteristics: 2019 Acquisition
Portfolio Characteristics 2019 Acquisition (dollars in thousands) Net Rent – Initial 12 Months Number of Acquisition Date Purchase Price Approximate Capitalization Properties Square Feet Rate1 Subsequent to June 30, 2019 Total Portfolio as of December 31, 2018 $ 2,997,908 19,866,000 7.41% $ 199,565
Slide 9: Portfolio Concentration: Tenant Business Diversity
Portfolio Concentration As of June 30, 2019 Tenant Business Diversity 1 (As of June 30, 2019) Tenant Business Diversity 2 3 Our management makes a conscious effort to achieve diversification by tenant industry as our portfolio grows. As of June 30, 2019, our analysis segmented the REIT’s portfolio i
Slide 10: Portfolio Concentration: Geographic Distribution and Asset Allocation
Portfolio Concentration (cont’d) As of June 30, 2019 Geographic Distribution Asset Allocation (By % of Net Rent) (By % of Net Rent) 1 1. All others account for less than 3.7% of total net rent for the 12-month period subsequent to June 30, 2019 on an individual basis. 10
Slide 11: Portfolio Concentration: Credit Characteristics
Portfolio Concentration (cont’d) As of June 30, 2019 Credit Characteristics (By % of Net Rent) 1 1. Investment grade descriptions are those of either tenants, guarantors, and/or non-guarantor parents with investment grade ratings or what management believes are generally equivalent ratings. 11
Slide 12: Strong Tenant Profile - Top Tenants
Strong Tenant Profile - Top 10 Tenants As of June 30, 2019 Top Tenants % of Portfolio1 Ratings 2 3 3.6% BBB+ 3.4% IG104 3.1% A- 2.9% BB 2.8% A25 2.5% AA 1. Based on net rental payment 12-month 2.5% B period subsequent to June 30, 2019. 2. Represents S&P ratings of tenants, 4 guarantors, or non-guara
Slide 13: Asset Management – Q2 2019
Asset Management – Q2 2019 New Prior Lease1 Expiration or Tenant Property Name Square Feet Comments Expiration Termination Date New Lease Activity: Full-building lease to commence in April 2020 for a 12-year term. Time Warner South Lake at Dulles Corner Cable had planned to vacate the property on 6/
Slide 14: Asset Management – Q2 2019 (cont'd)
Asset Management – Q2 2019 (cont’d) New Expiration Prior Lease Tenant Property Name Square Feet or Termination Comments Expiration Date Lease Expirations and Terminations: Tenant consolidating into owned property. Lease terminated 30 Independence Blvd. effective 12/31/18, including payment of 100% o
Slide 15: Asset Management – Q2 2019 (cont'd)
Asset Management – Q2 2019 (cont’d) Tenant Property Name Square Feet Comments Property On the Market: Jackson National Life 7601 Technology Way 191,368 Buyer has been selected, sale expected to close by the end of the third quarter. Zoom Video Denver, CO Tenant has vacated the property and will not
Slide 16: Financial Performance Review
Financial Performance Review Javier Bitar | Chief Financial Officer Photo: Schlumberger Technologies Corp. | Houston, Texas
Slide 17: Balance Sheet
Balance Sheet June 30, 2019 December 31, 2018 Total Assets $4.3 billion $3.0 billion Total Real Estate, Net $3.8 billion $2.5 billion Total Debt $1.9 billion $1.4 billion Total Equity Raised (including DRP), Net of Redemptions $2.4 billion $1.8 billion Ratios: Fixed Charge Coverage (Quarter to Date)
Slide 18: Financial Performance
Financial Performance (in thousands, except per share amounts) Three Months Ended June Six Months Ended June 30, 30, 2019 2018 2019 2018 Total Revenue $ 103,356 $ 85,991 $ 179,841 $ 166,390 Net Income Attributable to Common Stockholders $ 14,208 $ 7,431 $ 19,541 $ 13,750 Net Income Attributable to C
Slide 19: Determination of NAV
Determination of NAV Set forth below are the components of our daily NAV as of April 30, 2019 (Merger date) and June 30, 2019, calculated in accordance with our valuation procedures (in thousands, except share and per share amounts): June 30, 2019 April 30, 2019 Gross Real Estate Asset Value $ 4,374
Slide 20: Performance Report
Performance Report (in thousands, except per share amounts) Total Return as of June 30, 2019(%)1 Excluding Sales Load2 Including Sales Load Quarter Ended Since Inception Since Inception Share Class/ Index Ticker Inception Date3 June 30, 2019 (Annualized) (Annualized) Class T ZGEATX 9/20/2017 0.62 5.
Slide 21: Debt Maturity Schedule
Debt Maturity Schedule (including effect of interest rate swap) As of June 30, 2019 (dollars in Thousands) Statistics Fixed Floating Total (including effect of Swap) Amount $ 1,445,897 $ 500,939 $ 1,946,836 Percentage of Total Debt 74% 26% 100% W.A. Term Remaining (Yrs.) 6.79 4.84 6.41 W.A. Interest
Slide 22: Questions & Answers
Questions & Answers Michael Escalante | CEO & President Javier Bitar | Chief Financial Officer Photo: Shaw Industries | Savannah, Georgia
Slide 23: Thank you for your participation
310.469.6100 1520 E. Grand Avenue www.gcear.com El Segundo, CA 90245 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 Se
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