Peakstone Realty Trust · NYSE:PKST
Peakstone Realty Trust — Griffin Capital Essential Asset REIT — Q4 2019 Earnings Presentation
24 slides from Peakstone Realty Trust's earnings presentation, Mar 5, 2020
Slide 1: Fourth Quarter 2019 Summary of Earnings Results and Portfolio Update
FEATURING NEXTNAV™ FOURTH 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 AV
Slide 2: Conference Call Agenda
Conference Call Agenda TOPICS SPEAKER • Highlights and Share Performance 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 Chi
Slide 3: Highlights and Share Performance
Highlights and Share Performance Michael Escalante, CEO & President
Slide 4: Key 2019 Highlights
Key 2019 Highlights Completed the merger between Griffin Capital Essential Asset REIT and Griffin Capital Essential Asset REIT II, resulting in a meaningful increase in portfolio size, scale and diversification Internalized management generated a significant reduction in corporate operating expenses
Slide 5: Share Performance
Share Performance Total Return as of December 31, 2019(%)1 Excluding Sales Load2 Including Sales Load Year Ended Since Inception Since Inception Share Class/ Index Ticker Inception Date3 December 31, 2019 (Annualized) (Annualized) Class T ZGEATX 9/20/2017 2.81% 4.98% 3.35% Class S ZGEASX 9/20/2017 2
Slide 6: Portfolio Update
Portfolio Update Michael Escalante, CEO & President
Slide 7: Portfolio Characteristics
Portfolio Characteristics December 31, 2019 Total Enterprise Value1 $4.6 billion Acquisition Value2 $4.2 billion Number of Properties2 99 Number of Buildings2 122 Size of Portfolio (square feet) 26.8 million Occupied/Leased (based on portfolio square feet)3 89.9% / 91.3% Percentage of Cash Flow from
Slide 8: Diversified National Portfolio
Diversified National Portfolio As of December 31, 2019 The portfolio is comprised of 99 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. 8
Slide 9: Portfolio Concentration
Portfolio Concentration As of December 31, 2019 Geographic Distribution Asset Allocation (By % of Net Rent) (By % of Net Rent) California 10.8% All Others 24.3% Texas 10.7% Office 83.5% North Carolina Ohio 4.1% 9.3% South Carolina 4.1% Industrial Colorado 16.5% 5.1% Arizona 9.1% New Jersey Georgia 6
Slide 10: Portfolio Concentration (cont'd): Tenant Business Diversity
Portfolio Concentration (cont’d) As of December 31, 2019 Tenant Business Diversity1 (By % of Net Rent) 2 Capital Goods, 13.8% Our management makes a conscious Health Care Equipment & Services, 9.7% Insurance, 8.1% effort to achieve diversification by Consumer Services, 7.9% tenant industry as our po
Slide 11: Portfolio Concentration (cont'd): Credit Characteristics
Portfolio Concentration (cont’d) As of December 31, 2019 Credit Characteristics1 (By % of Net Rent) Investment Grade 65.5% BBB WEIGHTED AVERAGE Unrated Credit 5.4% CREDIT RATING Sub-investment Grade 29.1% 1. Investment grade descriptions are those of either tenants, guarantors, and/or non-guarantor
Slide 12: Strong Tenant Profile: Top Tenants
Strong Tenant Profile: Top 10 Tenants As of December 31, 2019 2 2 1 Ratings Ratings Top Tenants % of Portfolio (As of 12/31/19) (As of 9/30/19) 3 3.5% BBB+ BBB+ 3.5% BBB-4 BB+7 3.1% A- A- 3.1% BBB+ BBB+ 2.9% BB+ BB+ 1. Based on net rental payment 12-month period subsequent to December 31, 2019. 2. R
Slide 13: Asset Management – Fourth Quarter 2019 Renewal Lease Activity
Asset Management – Fourth Quarter 2019 Renewal Lease Activity Tenant Name SB U.S. LLC Tenant Name Tenable Inc. Location San Carlos, CA Location Columbia, MD Sq. Ft. 103,948 Sq. Ft. 30,098 Prior Lease Expiration 5/31/2020 Prior Lease Expiration 12/31/2019 New Lease Expiration 3/31/2023 New Lease Expi
Slide 14: Asset Management – Property Sales
Asset Management – Fourth Quarter 2019 (cont’d) Property Sales Tenant Property Location Square Feet Comments Building sold on October 7, 2019 for a sales price of $30.3 million. Columbus, OH 160,410 The property sold for an amount approximating carrying value. Building was sold November 20, 2019 for
Slide 15: Asset Management – Post-Quarter Acquisition
Asset Management – Fourth Quarter 2019 (cont’d) Post-Quarter Acquisition Acquisition date February 5, 2020 Tenant Pepsi Bottling Ventures Location Winston-Salem, NC Square feet 526,320 Acquisition price $34.9M Remaining lease term 12.5 years 15
Slide 16: Financial Performance Review
Financial Performance Review Javier Bitar, Chief Financial Officer
Slide 17: Capital Structure Overview
Capital Structure Overview Enterprise Value As of December 31, 2019 Common Equity $2.1 billion Capitalization OP Units 0.3 billion Total Equity 2.4 billion Secured Debt 1.0 billion Secured Debt Unsecured Debt Unsecured Debt 1.0 billion 22.1% 20.9% Unconsolidated Debt (Pro Rata Share) 0.1 billion Unc
Slide 18: Financial Performance
Financial Performance (in thousands, except per share amounts) Three Months Ended Year Ended December 31, December 31, 2019 2018 2019 2018 Total Revenue $ 109,832 $ 84,927 $ 387,108 $ 336,359 Net income attributable to common stockholders per share, basic and diluted $ (0.02) $ 0.01 $ 0.11 $ 0.10 Ad
Slide 19: Conservative Balance Sheet with Ample Liquidity
Conservative Balance Sheet with Ample Liquidity As of December 31, 2019 Capitalization Consolidated Debt Composition 2% Common Equity & OP Units Preferred Equity 27% Fixed Rate Debt 43% 52% Consolidated Debt Floating Rate Debt 73% Unconsolidated Debt (Pro Rata Share) 3% Available Liquidity Consolida
Slide 20: Significant Reduction in Corporate Operating Expenses as a Result of Self-Administration
Significant Reduction in Corporate Operating Expenses1 as a Result of Self-Administration $90,000 $80,000 $76,919 $72,967 50% decline in Corporate Operating $70,000 Expenses of the Combined Company $60,000 $50,000 (Thousands) $38,548 $40,000 $30,000 $20,000 $10,000 $0 2017 2018 2019 1. Corporate Ope
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 December 31, 2019 and September 30, 2019, calculated in accordance with our valuation procedures (in thousands, except share and per share amounts): December 31, 2019 September 30,
Slide 22: Consolidated Debt Maturity Schedule
Consolidated Debt Maturity Schedule (including effect of interest rate swap) As of December 31, 2019 (Dollars in Thousands) Weighted Average Debt Maturity: 5.9 years $700,000 $555,7301 $600,000 (28.1%) $500,000 $415,6102 $375,0005 (21.1%) $400,000 (18.9%) 6 $300,000 $250,000 (Thousands) (12.6%) $150
Slide 23: Questions & Answers
Questions & Answers Michael Escalante, CEO & President | Javier Bitar, Chief Financial Officer
Slide 24: 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
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