Peakstone Realty Trust · NYSE:PKST
Peakstone Realty Trust — Q4 2024 Earnings Presentation
55 slides from Peakstone Realty Trust's earnings presentation, Feb 20, 2025
Slide 1: Supplemental Information Fourth Quarter 2024
Supplemental Information Fourth Quarter 2024 1
Slide 2: Table of Contents
2 Table of Contents Page Portfolio Overview 4 Financial Information - Entire Portfolio 6 Debt & Capitalization 19 Components of Net Asset Value 23 Portfolio Characteristics: Industrial 25 Portfolio Characteristics: Office 31 Portfolio Characteristics: All Segments 37 Operating Portfolio Summary 43 R
Slide 3: Cautionary Statement Regarding Forward-Looking Statements
3 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”), and Section 21E of the Securities Ex
Slide 4: Portfolio Overview
Portfolio Overview 4
Slide 5: Portfolio Overview
5 OPERATING PORTFOLIO Segment Number of Properties Occupancy Percentage (based on rentable square feet) Occupancy Percentage (based on usable acres) WALT (years)1 ABR ($ in thousands) % of ABR Investment Grade %1,2 Industrial 64 N/A N/A 5.5 $72,399 39.1% 54.9% Industrial Outdoor Storage (IOS)3 45 N/
Slide 6: Financial Information - Entire Portfolio
Financial Information - Entire Portfolio 6
Slide 7: Selected Financial Data
7 1 Calculated based on weighted-average number of common shares outstanding - basic and diluted. 2 Calculated based on total weighted-average number of common shares outstanding - basic and diluted and weighted-average number of outstanding OP Units. FFO and AFFO are non-GAAP financial measures. Se
Slide 8: Revenue, NOI and Cash NOI by Segment
8 For the Quarter Ended (Unaudited, USD in thousands) 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 REVENUE BY SEGMENT IOS $ 5,464 $ — $ — $ — $ — Traditional Industrial 14,981 14,918 14,554 14,833 14,796 Total Industrial 20,445 14,918 14,554 14,833 14,796 Office 33,318 33,234 32,991 32,999 34
Slide 9: Consolidated Statements of Operations
9 For the Quarter Ended (Unaudited, USD in thousands, except per share metrics) 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 REVENUES Rental income $ 57,934 $ 54,960 $ 55,952 $ 59,227 $ 63,058 EXPENSES Property operating expense 6,138 6,815 6,017 7,090 7,653 Property tax expense 4,354 4,286 4
Slide 10: Consolidated Balance Sheets - Assets
10 As of (Unaudited, USD in thousands) 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 ASSETS Cash and cash equivalents $ 146,514 $ 241,550 $ 446,800 $ 436,251 $ 391,802 Restricted cash1 7,696 25,181 14,496 11,213 9,208 Real estate Land 450,217 212,312 225,330 227,138 231,175 Building and improv
Slide 11: Consolidated Balance Sheets - Liabilities and Equity
11 As of (Unaudited, USD in thousands) 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 LIABILITIES AND EQUITY Debt, net $ 1,344,619 $ 1,168,010 $ 1,408,517 $ 1,416,433 $ 1,435,923 Interest rate swap liability — 10,255 — — — Distributions payable 8,477 8,436 8,486 8,422 8,344 Below-market lease a
Slide 12: Reconciliation of Net Income to Total NOI (Quarterly)
12 For the Quarter Ended (Unaudited, USD in thousands) 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 Net income (loss) $ 13,816 $ (26,549) $ (4,101) $ 5,470 $ (21,767) General and administrative expenses 9,056 9,122 9,116 9,680 11,551 1 Corporate operating expenses to related parties 141 141 1
Slide 13: Reconciliation of Net Loss to Total NOI (Annual)
13 For the Year Ended (Unaudited, USD in thousands) 12/31/2024 12/31/2023 Net loss $ (11,363) $ (605,102) General and administrative expenses 36,973 42,962 Corporate operating expenses to related parties 617 1,154 Real estate impairment provision 53,313 409,512 Depreciation and amortization 94,982 1
Slide 14: NOI to Cash NOI Reconciliation - Quarter
14 For the Quarter Ended For the Quarter Ended 12/31/2024 12/31/2023 (Unaudited, USD in thousands) IOS Traditional Industrial Total Industrial Office Other1 Total Portfolio IOS Traditional Industrial Total Industrial Office Other1 Total Portfolio Revenue $ 5,464 $ 14,981 $ 20,445 $ 33,318 $ 4,171 $
Slide 15: NOI to Cash NOI Reconciliation - Year
15 For the Year Ended For the Year Ended 12/31/2024 12/31/2023 (Unaudited, USD in thousands) IOS Traditional Industrial Total Industrial Office Other1 Total Portfolio IOS Traditional Industrial Total Industrial Office Other1 Total Portfolio Revenue $ 5,464 $ 59,286 $ 64,750 $ 132,541 $ 30,782 $ 228,
Slide 16: Same Store Cash NOI
16 For the Quarter Ended For the Year Ended (Unaudited, USD in thousands) 12/31/2024 12/31/2023 12/31/2024 12/31/2023 CASH NOI ALLOCATION IOS $ 4,105 $ — $ 4,105 $ — Traditional Industrial 11,577 12,485 46,006 48,897 Total Industrial $ 15,682 $ 12,485 $ 50,111 $ 48,897 Office 29,490 28,763 111,683 1
Slide 17: Reconciliation of Net Income to FFO and AFFO
17 For the Quarter Ended (Unaudited, USD in thousands, except per share metrics) 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 Reconciliation of Net (Loss) Income to Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO) NET (LOSS) INCOME $ 13,816 $ (26,549) $ (4,101) $ 5,470 $
Slide 18: Reconciliation of Net Income to EBITDAre
18 For the Quarter Ended (Unaudited, USD in thousands) 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 Reconciliation of Net income (loss) to EBITDAre Net (loss) income $ 13,816 $ (26,549) $ (4,101) $ 5,470 $ (21,767) Interest expense 15,916 14,140 15,845 16,148 16,415 Depreciation and amortizat
Slide 19: Debt & Capitalization
VX Peakstone Debt & Capitalization
Slide 20: Capitalization and Liquidity
20 (Unaudited, USD in thousands, except for shares) Capitalization Liquidity Contractual Interest Rate1 Effective Interest Rate2 Remaining Term MAXIMUM CREDIT FACILITY CAPACITY $ 1,082,000 SECURED DEBT Fixed-Rate Mortgages 4.72% 4.76% 4.1 $ 360,326 Maximum Availability (per credit facility) $ 1,082,
Slide 21: Consolidated Secured Debt Schedule
21 (Unaudited, USD in thousands) SECURED DEBT Collateral Contractual Interest Rate Maturity Date Outstanding Balance BOA II Loan1 4.32% May 2028 $ 250,000 Georgia Mortgage Loan2 5.31% Nov 2029 37,722 Illinois Mortgage Loan3 6.51% Nov 2029 23,000 Florida Mortgage Loan4 5.48% May 2032 49,604 Weighted-
Slide 22: Consolidated Debt Maturity Schedule
22 1 Excludes amounts related to deferred financing costs and debt premiums/discounts. 2 Represents the 2026 Term Loan. 3 Represents the outstanding balance of the Revolving Loan. 4 Represents the 2028 Term Loan I and 2028 Term Loan II. 5 Represents the BOA II Loan. 6 Represents both the Florida and
Slide 23: Components of Net Asset Value
Components of Net Asset Value 23
Slide 24: Components of Net Asset Value
24 (Unaudited, USD in thousands) Annualized Base Rent Balance Sheet Components (cont'd) ABR Percentage of ABR LIABILITIES Industrial � � Credit facility2 $ 1,000,000 Investment grade1 $ 39,726 21.5 % Mortgages payable2 360,326 � Sub-investment grade1 21,243 11.5 % Distributions payable 8,477 Unrated
Slide 25: Portfolio Characteristics: Industrial
25 Portfolio Characteristics: Industrial
Slide 26: Industrial National Footprint
26 70 Properties 19 States 32 Markets 5.5 Years WALT1 1 Weighted average based on ABR for Industrial segment. Unaudited Industrial National Footprint As of December 31, 2024 PROPERTIES 45 IOS 19 Traditional Industrial 6 Redevelopment
Slide 27: Tenant Concentration: Industrial Segment
27 Top 10 Tenants Tenant/Major Tenant Rating1 % of ABR2 WALT (years)2 1 Amazon6 AA 13.8% 6.6 2 RH B1 3 10.6 5.7 3 3M Company A3 3 7.0 1.8 4 Samsonite BB+ 6.2 4.9 5 Shaw Industries AA 4.6 8.3 6 PepsiCo A+ 4.5 3.6 7 Amcor BBB 3.8 7.8 8 Huntington Ingalls BBB 4 3.6 3.0 9 United Rentals BBB-5 3.1 3.8 10
Slide 28: Industry Concentration: Industrial Segment
28 Industry Concentration: Industrial Segment As of December 31, 20242021 Top 9 Industries Top 20 Sub-Industries Industry % of ABR1 Sub-Industry % of ABR1 1 Capital Goods 30.3 % 1 Internet & Direct Marketing Retail 13.8 % 2 E-Commerce 13.8 2 Trading Companies & Distributors 11.4 3 Retailing 13.5 3 H
Slide 29: Market Concentration: Industrial Segment
29 Geographic Distribution by State (% of ABR1) Market Concentration: Industrial Segment As of December 31, 2024 (USD in thousands) Top 10 Markets (% of ABR)1 Markets ABR % of ABR1 1 Chicago $ 9,385 13.0 % 2 Columbus 7,816 10.8 3 Stockton/Modesto 7,637 10.6 4 Savannah 5,088 7.1 5 Philadelphia 5,024
Slide 30: Lease Expirations: Industrial Segment
30 Lease Expirations: Industrial Segment As of December 31, 2024 (USD in thousands) Lease Maturity Schedule (by ABR1) $476 $7,495 $4,310 $12,083 $8,123 $9,351 $12,103 $6,967 $7,187 $— $4,304 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 >2034 Expiring Leases Year Leases Approx. Square Feet Appro
Slide 31: Portfolio Characteristics: Office
31 Portfolio Characteristics: Office
Slide 32: Office Portfolio National Footprint
32 33 Properties 16 States 18 Markets 6.9 Years WALT1 1 Weighted average based on ABR for Office segment. Unaudited Office Portfolio National Footprint As of December 31, 2024
Slide 33: Tenant Concentration: Office
33 Top 10 Tenants Tenant/Major Tenant Rating1 % of ABR2 WALT (years)3 1 Keurig Dr. Pepper Baa1 4 10.6% 4.9 2 Southern Company Services A- 8.4 19.2 3 LPL Holdings BBB- 7.9 11.8 4 Maxar Technologies NR 6 7.0 5.5 5 Freeport McMoRan Baa1 4 7.0 2.4 6 McKesson Corporation A3 4 5.6 3.8 7 Travel & Leisure,
Slide 34: Industry Concentration: Office
34 Industry Concentration: Office As of December 31, 2024 2021 Top 10 Industries Top 20 Sub-Industries Industry % of ABR1 Sub-Industry % of ABR1 1 Materials 11.5 % 1 Aerospace & Defense 11.4 % 2 Capital Goods 11.4 2 Soft Drinks 10.6 3 Food, Beverage & Tobacco 10.6 3 Health Care Services 8.8 4 Utilit
Slide 35: Market Concentration: Office
35 Geographic Distribution by State (% of ABR1) Market Concentration: Office As of December 31, 2024 (USD in thousands) Top 10 Markets (% of ABR)1 Markets ABR % of ABR1 1 Phoenix $ 20,287 18.0 % 2 Boston 12,839 11.4 3 Denver 10,993 9.8 4 Birmingham 9,409 8.4 5 Northern New Jersey 9,149 8.1 6 Charlot
Slide 36: Lease Expirations: Office
36 Lease Expirations: Office As of December 31, 2024 (USD in thousands) Lease Maturity Schedule (by ABR1) $1,508 $4,713 $14,524 $8,017 $24,193 $18,500 $7,486 $7,456 $2,442 $— $23,818 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 >2034 Expiring Leases Year Leases Approx. Square Feet ABR % of ABR1
Slide 37: Portfolio Characteristics: All Segments
37 Portfolio Characteristics: All Segments
Slide 38: Rent Growth: All Segments
38 1 Based on ABR for each segment. Rent Growth: All Segments As of December 31, 2024 Lease Escalations - Traditional Industrial % of ABR1 Average Annual Rent Escalations Annually 93.4% 2.1% Other Frequencies — — Subtotal - Annually and Other Frequencies 93.4 2.1 No Escalations 6.6 — TOTAL / WEIGHTE
Slide 39: Tenant Concentration: All Segments
39 Top 10 Tenants Tenant/Major Tenant Rating1 % of ABR2 WALT (years)3 1 Keurig Dr. Pepper Baa1 4 6.4% 4.9 2 Amazon5 AA 5.4 6.6 3 Southern Company Services A- 5.1 19.2 4 LPL Holdings BBB- 4.8 11.8 5 Maxar Technologies NR 6 4.3 5.5 6 Freeport McMoRan Baa1 4 4.3 2.4 7 RH B1 4 4.1 5.7 8 McKesson Corpora
Slide 40: Industry Concentration: All Segments
40 Industry Concentration: All Segments As of December 31, 2024 Top 10 Industries Top 20 Sub-Industries Industry % of ABR1 Sub-Industry % of ABR1 1 Capital Goods 18.8 % 1 Soft Drinks 9.3 % 2 Materials 9.5 2 Aerospace & Defense 9.0 3 Food, Beverage & Tobacco 9.3 3 Internet & Direct Marketing Retail 5
Slide 41: Market Concentration: All Segments
41 Geographic Distribution by State (% of ABR1) Market Concentration: All Segments As of December 31, 2024 (USD in thousands) Top 10 Markets (% of ABR)1 Markets ABR % of ABR1 1 Phoenix $ 20,287 11.0 % 2 Boston 12,839 6.9 3 Denver 11,547 6.2 4 Northern New Jersey 11,273 6.1 5 Birmingham 9,409 5.1 6 C
Slide 42: Lease Expirations: All Segments
42 Lease Expirations: All Segments As of December 31, 2024 (USD in thousands) Lease Maturity Schedule (by ABR1) 1 Based on ABR for all segments. 2 Represents unleased space at Redevelopment Properties. $1,984 $12,208 $18,834 $20,100 $32,316 $27,851 $19,589 $14,423 $9,629 $— $28,122 2025 2026 2027 20
Slide 43: Operating Portfolio Summary
43 Operating Portfolio Summary
Slide 44: Operating Portfolio
44 Operating Portfolio As of December 31, 2024 OPERATING PORTFOLIO Segment Number of Properties Occupancy Percentage (based on rentable square feet) Occupancy Percentage (based on usable acres) WALT (years)1 ABR ($ in thousands) % of ABR Investment Grade %1,2 Industrial 64 N/A N/A 5.5 $72,399 39.1%
Slide 45: Leasing Activity - Operating Portfolio
45 NEW AND RENEWAL LEASES - RENTABLE SQUARE FEET Cash Rent GAAP Rent Location Segment Property Type New Lease Start Date New Lease Expiration Date Term (Yrs) Approx. Square Feet Leasing Commissions $/SF Tenant Improvement $/SF Starting Rent/ SF Prior Rent/ SF Rent Change Starting Rent/SF Prior Rent/
Slide 46: Capital Expenditures by Segment
46 (Unaudited, USD in thousands) 12/31/2024 % of NOI1 9/30/2024 % of NOI1 6/30/2024 % of NOI1 3/31/2024 % of NOI1 12/31/2023 % of NOI1 Maintenance Capital Expenditures by segment: IOS $ — — % $ — — % $ — — % $ — — % $ — — % Traditional Industrial 166 0.3 — — — — 89 0.2 651 1.3 Total Industrial 166 0
Slide 47: Redevelopment Properties
Redevelopment Properties 47
Slide 48: Redevelopment Properties
48 Redevelopment Properties As of December 31, 2024 Property Name Location Projected Usable Acres1 Leased Percentage as of Quarter-End Occupancy Percentage as of Quarter-End CURRENT REDEVELOPMENT 1 3812 28th Place NE Everett, WA 37 - % - % 2 175 Container Road Savannah, GA 8 - - 3 2687-2691 McCollum
Slide 49: Notes & Definitions
Notes & Definitions 49
Slide 50: Notes & Definitions
50 Notes & Definitions ABR (Annualized Base Rent) “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 an
Slide 51: Notes & Definitions (continued)
51 Notes & Definitions (continued) Funds from Operations ("FFO") and Adjusted Funds from Operations ("AFFO") "FFO" and "AFFO" are non-GAAP financial measures that we believe are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the opera
Slide 52: Notes & Definitions (continued)
52 Notes & Definitions (continued) FFO and AFFO - cont. By providing FFO and AFFO, we present information that assists investors in aligning their analysis with management’s analysis of long-term operating activities. FFO and AFFO have been revised to include amounts available to both common shareho
Slide 53: Notes & Definitions (continued)
53 Notes & Definitions (continued) Net Operating Income (NOI), Cash NOI, and Same Store Cash NOI Net operating income (“NOI”) is a non-GAAP financial measure calculated as net (loss) income, the most directly comparable financial measure calculated and presented in accordance with GAAP, excluding ge
Slide 54: Notes & Definitions (continued)
54 Notes & Definitions (continued) The table below represents a reconciliation of NOI to Cash NOI for the interim periods presented in the "Selected Financial Data" on slide 8. For the Quarter Ended 9/30/2024 6/30/2024 3/31/2024 (Unaudited, USD in thousands) Industrial Office Other Total Portfolio I
Slide 55: Notes & Definitions (continued)
55 Notes & Definitions (continued) Normalized EBITDAre “Normalized EBITDAre” is a non-GAAP supplemental performance measure to evaluate the operating performance of the Company. Normalized EBITDAre, as defined by the Company, represents EBITDAre(as defined by NAREIT), modified to exclude items such
Peakstone Realty Trust — Q4 2024 Earnings Presentation on 6ix