Peakstone Realty Trust · NYSE:PKST
Peakstone Realty Trust — Q1 2025 Earnings Presentation
36 slides from Peakstone Realty Trust's earnings presentation, May 8, 2025
Slide 1: Investor Presentation First Quarter 2025
Investor Presentation First Quarter 2025
Slide 2: Disclaimers / Forward-Looking Disclosure
Disclaimers / Forward-Looking Disclosure Cautionary Statement Regarding Forward-Looking Statements This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the “Securities Act”
Slide 3: Agenda
Agenda 1 Investment Opportunity 2 Industrial Outdoor Storage (IOS) 3 Portfolio Overview 4 Industrial Segment 5 Office Segment 6 Redevelopment Highlights 7 Capitalization Overview 3
Slide 4: Investment Opportunity
1 Investment Opportunity Advancing Strategic Shift to an Industrial REIT Targeting Growth in the Industrial Outdoor Storage (“IOS”) Subsector Go-Forward Strategy Demonstrated Ability to Execute Grow IOS portfolio concentration ✓ Fully leased our largest IOS redevelopment site in Q1 2025 - Through ex
Slide 5: Agenda
Agenda 1 Investment Opportunity 2 Industrial Outdoor Storage (IOS) 3 Portfolio Overview 4 Industrial Segment 5 Office Segment 6 Redevelopment Highlights 7 Capitalization Overview 5
Slide 6: IOS – Compelling Opportunity
2 IOS – Compelling Opportunity …IOS sites in infill submarkets are Large, highly fragmented subsector priced to deliver risk-adjusted expected returns that are superior to those available on most other commercial real estate property Significant and persistent investments… supply constraints Green S
Slide 7: IOS – Subsector Characteristics
2 IOS – Subsector Characteristics Large ($200bn+)1, Highly Fragmented Subsector Barriers to Supply ▪ Users and individuals own a significant share ▪ Limited infill land zoned for IOS near major logistics hubs ▪ Few institutional owners ▪ Existing IOS supply reduced each year due to redevelopment ▪ F
Slide 8: IOS – Portfolio Acquisition (November 2024)
3 IOS – Portfolio Acquisition (November 2024) Investment Highlights Strategic Rationale $490mm ▪ Strategically compelling off-market acquisition that will drive Purchase Price long-term shareholder value ▪ Significantly enhances growth profile – potential ~70% 51 properties / 440 usable acres Mark-t
Slide 9: Agenda
Agenda 1 Investment Opportunity 2 Industrial Outdoor Storage (IOS) 3 Portfolio Overview 4 Industrial Segment 5 Office Segment 6 Redevelopment Highlights 7 Capitalization Overview 9
Slide 10: Portfolio Overview
3 Portfolio Overview (pro forma Q1 2025) Traditional Industrial Office Portfolio IOS Industrial Segment Segment Total Properties 51 19 70 28 98 Usable Acres / RSF 440 9.0mm 440 / 9.0mm 4.6mm 440 / 13.6mm In-Place ABR (mm) $24.3 / 14% + $50.4 / 29% = $74.8 / 43% + $98.0 / 57% = $172.8 WALT (years)1 4
Slide 11: Agenda
Agenda 1 Investment Opportunity 2 Industrial Outdoor Storage (IOS) 3 Portfolio Overview 4 Industrial Segment 5 Office Segment 6 Redevelopment Highlights 7 Capitalization Overview 11
Slide 12: Industrial Segment Comprises Two Highly Complementary Property Types – IOS & Traditional Industrial
4 Industrial Segment Comprises Two Highly Complementary Property Types – IOS & Traditional Industrial Shared Market Dynamics Similar Tenant Profile ▪ Limited availability of well-located assets ▪ Industrial tenants ▪ Barriers to entry for new development ▪ National and regional tenants ▪ Demand driv
Slide 13: Expansive, Infill-Focused Industrial Portfolio
4 Expansive, Infill-Focused Industrial Portfolio (Q1 2025) Industrial Segment 5 Columbus, OH 10% of ABR 19 90 95 States Detroit, MI Philadelphia, PA 4% of ABR 75 90 7% of ABR 32 Stockton / Modesto, CA 10% of ABR 80 80 Markets 80 Chicago, IL 13% of ABR 70 70 70 Hampton Roads, VA ~59% 5 15 25 5% of AB
Slide 14: High-Quality and High-Growth Industrial Assets
4 High-Quality and High-Growth Industrial Assets (Q1 2025) Segment Characteristics IOS ~70% 73% 8.6 Mark-to-Market Coastal & Average Sunbelt1 Site Acreage Traditional Industrial ~23% 14 years 32’ Mark-to-Market Average Average Building Age2 Clear Height3 Notes: Data as of March 31, 2025. (1) Weighte
Slide 15: Industrial Segment Lease Maturity Schedules
4 Industrial Segment Lease Maturity Schedules (Q1 2025) Balanced lease rollover profile supports growth and stable cash flow IOS 5.8 Traditional Industrial 4.6 Traditional IOS Industrial $141,194(1) WALT (yrs.)1 WALT (yrs.)1 Cumulative Cumulative Expiration % 1% 11% 29% 47% 56% 63% 79% 88% 93% 100%
Slide 16: Diversified Industrial Portfolio in Growth Markets
4 Diversified Industrial Portfolio in Growth Markets (Q1 2025) Industrial Segment Top 10 Tenants Industrial Segment Top 10 Markets % of % of Segment Traditional Leased IOS 1 Top 10 Industrial Tenants Rating WALT (yrs.) Segment ABR Top 10 Markets ABR Industrial RSF Usable Acres 1 AA 6.3 13% 1 Chicago
Slide 17: Industrial Segment Operating Portfolio – Significant Mark-to-Market Opportunity
4 Industrial Segment Operating Portfolio – Significant Mark-to-Market Opportunity (Q1 2025) Blends to ~38% Mark-to-Market mm mm mm mm ~40% IOS Represents an ~23% Mark-to-Market Represents an ~70% Mark-to-Market ~60% Traditional Industrial Notes: Data as of March 31, 2025. 17
Slide 18: Agenda
Agenda 1 Investment Opportunity 2 Industrial Outdoor Storage (IOS) 3 Portfolio Overview 4 Industrial Segment 5 Office Segment 6 Redevelopment Highlights 7 Capitalization Overview 18
Slide 19: Strategic Divestment of Office Properties
5 Strategic Divestment of Office Properties (Year-to-Date) Closed over $2bn in office asset sales across 30 markets since 2022 Cumulative Office Asset Sales1 ($ in mm) Includes $144mm of office sales year-to-date Notes: Data as of May 8, 2025. (1) Based on disposition price. 19
Slide 20: Marketable Office Assets
5 Marketable Office Assets (pro forma Q1 2025) ◼ 62% of ABR generated from corporate headquarters or Central to Tenant properties containing R&D, lab, or data center/command center Operations functions Significant Credit ◼ 60% of ABR is generated from leases with S&P 500 Companies1 Tenancy ◼ 96% of
Slide 21: Credit Office Tenants with Limited Near-Term Roll
5 Credit Office Tenants with Limited Near-Term Roll (pro forma Q1 2025) Segment Characteristics 25 Tenants 99% Leased1 Lease Expiration Schedule 59% Investment Grade2,3 Limited near-term rollover (only 18% of Office segment ABR through 2027) 6.4-Year WALT 18% ABR rolling through 2027 Notes: Data as
Slide 22: Agenda
Agenda 1 Investment Opportunity 2 Industrial Outdoor Storage (IOS) 3 Portfolio Overview 4 Industrial Segment 5 Office Segment 6 Redevelopment Highlights 7 Capitalization Overview 22
Slide 23: Redevelopment Approach
6 Redevelopment Approach 1. Leverage our vertically-integrated platform with redevelopment expertise 2. Partner with tenants on expansion and growth opportunities 3. Identify opportunities that generate attractive risk-adjusted returns 4. Construct versatile improvements that appeal to multiple tena
Slide 24: Redevelopment Properties
6 Redevelopment Properties (Q1 2025) Q1 2025 Update 5 IOS properties | 45 usable acres | 7.5-8.0% Target Yield1 ▪ Transitioned one Redevelopment Property 2 Burlington, NJ to the Operating Portfolio 1 Hatfield, PA ▪ Achieved 100% Occupancy of largest Redevelopment Property 3 ▪ 37 usable acres in Ever
Slide 25: Agenda
Agenda 1 Investment Opportunity 2 Industrial Outdoor Storage (IOS) 3 Portfolio Overview 4 Industrial Segment 5 Office Segment 6 Redevelopment Highlights 7 Capitalization Overview 25
Slide 26: Capitalization
7 Capitalization (Q1 2025 & pro forma Q1 20253) Debt Capitalization Maximum Credit Facility Capacity $1,082 Effective Remaining Q1 2025 Office Dispo. PF Q1 2025 Interest Rate⁽¹⁾ Term⁽²⁾ Balance Proceeds Post-Q1 Balance Maximum Availability (PF Q1 2025) $1,023 Secured Fixed Rate Mortgages 4.8% 3.9 $3
Slide 27: Debt Maturities
7 Debt Maturities (pro forma Q1 2025) 2, 000 Debt Maturity Schedule1 1, 00 % of Debt Maturing 1, 00 1, 400 1, 200 1, 000 00 00 400 200 herea er ortgage e t erm oans e ol ing Credit a ility aila le e ol er Capa ity Notes: $ in millions. Data as of March 31, 2025, on a pro forma basis after giving eff
Slide 28: Abbreviated Building Blocks of Net Asset Value
7 Abbreviated Building Blocks of Net Asset Value (pro forma Q1 2025) In-Place ABR Key Balance Sheet Components Industrial Segment $ 74.8 Cash $ 212.8 Office Segment $ 98.0 Total Debt $ 1,260.3 Total $ 172.8 Notes: $ in millions. Data as of March 31, 2025, on a pro forma basis after giving effect to
Slide 29: Appendix
APPENDIX 29
Slide 30: Team Expertise
Team Expertise (Q1 2025) Cycle-Tested Team Investment & Ownership Strategies ✓ Highly experienced team including IOS specialists ✓ ─ Executive management1 Property & Portfolio Investments ─ Average ~35 years of real estate experience ─ Decades of experience operating public companies ✓Repositioning
Slide 31: Highly Reputable Board of Trustees
Highly Reputable Board of Trustees • Former Managing Principal at Allstate Investments Carrie DeWees • More than 36 years in the real estate industry, including 12+ years managing a real estate portfolio Trustee • Experience managing industrial and office properties • Registered Certified Public Acc
Slide 32: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Net Income to Adjusted EBITDAre 3/31/2025 As Reported Net income / (loss) (53,401) Interest expense 15,978 Depreciation and amortization 25,439 EBITDA (11,984) Impairment provision, real estate 51,957 Gain on sales of real estate, net 479 EBITDAre 40,452
Slide 33: Definitions
Definitions Term Definition “Annualized Base Rent” or “ABR” is calculated as the monthly contractual base rent for leases that have commenced as of the end of the quarter, excluding rent abatements, multiplied by 12 months and deducting base year operating expenses for gross and modified leases, unl
Slide 34: Definitions (Cont'd)
Definitions (Cont’d) Term Definition There are a number of limitations related to our non-GAAP measures. Some of these limitations are that these measures, to the extent applicable, exclude: (i) historical or future cash requirements for maintenance capital expenditures or growth and expansion capit
Slide 35: Definitions (Cont'd)
Definitions (Cont’d) Term Definition Effective January 1, 2025, the Company presents the non-GAAP supplemental measure "Adjusted EBITDAre" to replace the previously disclosed "Normalized EBITDAre". This change is intended to enhance comparability and consistency in evaluating the ongoing operating p
Slide 36: Definitions (Cont'd)
Definitions (Cont’d) Term Definition Net Debt “Net Debt” is total debt (excluding deferred financing costs and debt premiums/discounts) less Cash. Occupancy or “Occupancy" is the leased square footage or usable acres, as applicable, under leases that have commenced as of the end of the quarter. Occu
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