Peakstone Realty Trust · NYSE:PKST
Peakstone Realty Trust — Griffin Capital Essential Asset REIT — Q1 2020 Earnings Presentation
24 slides from Peakstone Realty Trust's earnings presentation, May 13, 2020
Slide 1: First Quarter 2020 Investor Update
Exhibit 99.2 FIRST QUARTER 2020 Griffin Capital Essential Asset® REIT Investor 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 AVAILABLE TO YOU IN CONNECTION WITH AN OFFE
Slide 2: Forward-looking statements
CERTAIN INFORMATION INCLUDING, WITHOUT LIMITATION, PROJECTIONS, FORECASTS AND ESTIMATES, CONTAINED IN THIS QUARTERLY UPDATE, MAY CONSTITUTE “FORWARD-LOOKING STATEMENTS” WHICH CAN BE IDENTIFIED BY THE USE OF FORWARD- LOOKING TERMINOLOGY SUCH AS “MAY,” “SHOULD,” “WOULD,” “EXPECT,” “ANTICIPATE,” “PROJE
Slide 3: Table of Contents
Table of Contents PAGE First Quarter 2020 Highlights 4 Portfolio Update 6 Financial Performance Review 17 3
Slide 4: First Quarter 2020 Highlights
First Quarter 2020 Highlights
Slide 5: Key Highlights
Key Highlights Signed approximately 618,000 square feet of new and renewal leases with a weighted average term of 10.6 years. Acquired a 526,320 square foot industrial property in Winston-Salem, North Carolina. The purchase price was approximately $34.9 million and is 100% leased to Pepsi Bottling V
Slide 6: Portfolio Update
Portfolio Update
Slide 7: Portfolio Characteristics
Portfolio Characteristics As of March 31, 2020 Total Enterprise Value1 $4.7 billion Acquisition Value $4.2 billion Number of Properties 100 Number of Buildings 123 Size of Portfolio (Square Feet) 27.3 million Occupied/Leased (Based on Portfolio Square Feet)2 87.6% / 89.0% Percentage of Cash Flow fro
Slide 8: Diversified National Portfolio
AS OF MARCH 31, 2020 Diversified National Portfolio The portfolio is comprised of 100 properties located in 25 states and 116 tenants throughout the U.S. Note: Logos shown are those of tenants, lease guarantors, or non-guarantor parent companies at our properties. 8
Slide 9: Portfolio Concentration: Tenant Business Diversity
AS OF MARCH 31, 2020 Portfolio Concentration Tenant Business Diversity 1 (By % of Net Rent) 2 Our management makes a Capital Goods, 13.8% Health Care Equipment & Services, 9.6% conscious effort to achieve Insurance, 8.3% diversification by tenant industry Consumer Services, 7.8% Retailing, 7.7% as o
Slide 10: Portfolio Concentration: Geographic Distribution and Asset Allocation
AS OF MARCH 31, 2020 Portfolio Concentration (cont’d) Geographic Distribution Asset Allocation (By % of Net Rent) (By % of Net Rent) Texas 11.0% All Others1 24.0% California 10.7% Office 83.6% South Carolina 3.9% Ohio 9.0% North Carolina 4.7% Industrial/ Manufacturing/ Colorado Arizona Flex 5.1% 8.9
Slide 11: Portfolio Concentration: Credit Characteristics
AS OF MARCH 31, 2020 Portfolio Concentration (cont’d) Credit Characteristics1 (By % of Net Rent) Investment Grade 56.8% BBB WEIGHTED AVERAGE Unrated Credit 5.8% CREDIT RATING Sub-investment Grade 37.4% 1. Investment Grade are those of either tenants, guarantors, and/or non-guarantor parents with inv
Slide 12: Strong Tenant Profile: Top Tenants
Strong Tenant Profile: Top 10 Tenants As of 3/31/20 As of 12/31/19 Top Tenants % of Portfolio1 Ratings 2 Ratings2 3 3.5% BBB+ BBB+ 3.4% B+4 BBB-6 3.1% A- A- 1. Based on net rental payment 12-month period 3.1% BBB+ BBB+ subsequent to March 31, 2020. 2. Represents S&P ratings of tenants, guarantors, o
Slide 13: Asset Management: Renewal Lease Activity (Hopkins Enterprises)
FIRST QUARTER 2020 Asset Management: Renewal Lease Activity Tenant Name Hopkins Enterprises Location 428 Peyton Street, Emporia, KS Sq. Ft. 320,764 Prior Lease Expiration 12/31/2020 New Lease Expiration 12/31/2036 Comments Hopkins exercised a blend and extend for an additional 16 years of lease term
Slide 14: Asset Management: Renewal Lease Activity (NIKE)
FIRST QUARTER 2020 Asset Management: Renewal Lease Activity Tenant Name NIKE 3310 NE Aloclek Drive Location Hillsboro, OR Sq. Ft. 266,841 Prior Lease Expiration 12/31/2020 New Lease Expiration 12/31/2023 Comments Nike signed a lease extension on the entire four-building campus; the 3-year term comme
Slide 15: Asset Management: Property Acquisition
FIRST QUARTER 2020 Asset Management: Property Acquisition Tenant Name Pepsi Bottling Ventures 390 Business Park Drive Location Winston-Salem, NC Sq. Ft. 526,320 Property is fully leased to Pepsi Bottling Ventures through July Comments 31, 2032. Purchase was completed February 5, 2020 for $34.9 milli
Slide 16: Asset Management: Lease Expirations and Terminations
FIRST QUARTER 2020 Asset Management: Lease Expirations and Terminations Lease Expiration or Tenant Property Address Square Feet Comments Termination Date • 4424 West Houston Parkway North 12/31/2019 McDermott Inc. leased Floors 1 (partial) and 6 through 10 on a short-term basis Houston, TX 134,058 t
Slide 17: Financial Performance Review
Financial Performance Review
Slide 18: Capital Structure Overview
AS OF MARCH 31, 2020 Capital Structure Overview Enterprise Value Common Equity $2.1 billion OP Units 0.3 billion Secured Debt 22.1% Total Equity 2.4 billion Unconsolidated Debt Secured Debt 1.1 billion (pro rata share) Unsecured Net Debt 1.1 billion 1.7% Unconsolidated Debt (Pro Rata Share) 0.1 bill
Slide 19: Conservative Balance Sheet with Ample Liquidity
AS OF MARCH 31, 2020 Conservative Balance Sheet with Ample Liquidity Capitalization Consolidated Debt Composition 2.0% Common Equity & OP Units 44.0% Preferred Equity Fixed Rate Debt 86% Floating Rate Debt Consolidated Debt 14% 51.0% 3.0% Unconsolidated Debt (Pro Rata Share) Available Liquidity (in
Slide 20: Financial Performance
Financial Performance (in thousands, except per share amounts) Three Months Ended, March 31, 2020 2019 Total Revenue $ 95,728 $ 76,485 Net income attributable to common stockholders per share, basic and diluted $ – $ 0.03 Adjusted EBITDA (Per Loan Agreement)1 $ 63,462 $ 67,969 2 FFO attributed to co
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 March 31, 2020 and December 31, 2019, calculated in accordance with our valuation procedures (in thousands, except share and per share amounts): March 31, 2020 December 31, 2019 Gr
Slide 22: Share Performance
Share Performance Total Retur n as of March 31, 2020(%)1 Excluding Sales Load2 Including Sales Load Year Ended Since Inception Since Inception Share Class/ Index Ticker Inception Date3 March 31, 2020 (Annualized) (Annualized) Class T ZGEATX 9/20/2017 1.15% 4.96% 3.49% Class S ZGEASX 9/20/2017 1.15%
Slide 23: Debt Maturity Schedule
Debt Maturity Schedule (including effect of interest rate swap) As of March 31, 2020 (Dollars in Thousands) Weighted Average Debt Maturity: 5.5 years $750,000 $644,7271 (30.9%) $600,000 $434,2382 (20.9%) $375,0005 $450,000 (18.0%) $250,0006 $300,000 (12.0%) (Thousands) $150,0004 $126,9703 7 (7.2%) $
Slide 24: Contact information
1520 E. Grand Avenue 310.469.6100 El Segundo, CA 90245 www.gcear.com For more information visit www.gcear.com
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