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Peakstone Realty Trust (PKST) is an internally managed, publicly traded real estate investment trust (REIT) that specializes in owning and operating a portfolio of high-quality, newer-vintage properties. The company primarily focuses on single-tenant industrial and office properties located in diverse, strategic growth markets. PKST leases these properties to creditworthy tenants under long-term net lease agreements with contractual rent escalations.
- Office Segment - Operates a portfolio of office properties, catering to businesses with long-term leasing needs.
- Industrial Segment - Focuses on industrial properties, including investments in the industrial outdoor storage (IOS) subsector, providing space for logistics and storage operations.
- Other Segment - Previously included various properties, but this segment has been phased out following asset sales.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Michael J. Escalante ExecutiveBoard | Chief Executive Officer | Michael J. Escalante has served as the Chief Executive Officer of PKST since April 2019, while also holding the roles of President since November 2013 and Trustee since February 2015, demonstrating extensive leadership in the real estate industry. | View Report → | |
Javier F. Bitar Executive | Chief Financial Officer and Treasurer | Javier F. Bitar has served as the Chief Financial Officer and Treasurer of PKST since June 2016, bringing over 34 years of financial expertise in real estate. He has previously held executive roles at companies such as Griffin Capital Essential Asset TRS, Inc. and New Pacific Realty Corporation. | ||
Nina Momtazee Sitzer Executive | Chief Operating Officer, Chief Legal Officer, and Secretary | Nina Momtazee Sitzer has been serving as Chief Operating Officer, Chief Legal Officer, and Secretary at PKST since June 2023, after holding multiple executive roles at the company including General Counsel and Executive Vice President. With over 31 years of experience in real estate law and leadership, she has been pivotal in steering the company's operational and legal strategy. | ||
Carrie DeWees Board | Independent Trustee | Carrie DeWees is an Independent Trustee at PKST since April 2023. She brings extensive real estate investment expertise from her previous roles, including managing principal at Allstate Investments and serving as Director of Asset Management overseeing a $1.0 billion portfolio. | ||
Casey Wold Board | Non-Executive Chairperson of the Board of Trustees | Founder, Chief Executive Officer and Managing Partner at Vanderbilt Office Properties | Casey Wold has served as the Non-Executive Chairperson at PKST since April 2023 and brings over 40 years of experience in real estate investment and management. He has held leadership roles including Founder, Chief Executive Officer and Managing Partner at Vanderbilt Office Properties, and served in senior positions at Tishman Speyer and Trizec Properties. | |
Jeffrey Friedman Board | Trustee nominee | Senior Advisor at Mesa West Capital; Member of the Mortgage Bankers Association Board of Directors; Board member of the University of California, Los Angeles Ziman Real Estate Alumni Group | Jeffrey Friedman is a trustee nominee for Peakstone Realty Trust, set to serve as an Independent Trustee and join the Audit, Compensation, and Nominating and Corporate Governance Committees pending the 2024 annual meeting. Previously, he co-founded Mesa West Capital where he served as Co-CEO from November 2004 and continued as a Senior Advisor from March 2023, and he has held other leadership roles in real estate finance. | |
Samuel Tang Board | Independent Trustee | Managing Partner at TriGuard Management LLC | Samuel Tang is an Independent Trustee at PKST, serving as Chairperson of both the Audit and Compensation Committees, and he has over 25 years of experience in private equity and real estate investing. Previously, he held executive roles at TriGuard Management LLC and Pacific Life Insurance Company, which underscore his extensive background in finance and investments. |
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With your net debt to normalized EBITDAre ratio increasing to 7.5x following the IOS acquisition , how do you plan to reduce leverage back to your target ratio of 6x , especially if asset sales in the office segment face challenges in the current market environment?
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Considering that 10% of your industrial ABR is set to expire in 2026 , how confident are you in renewing these leases at favorable rates, and what strategies are you employing to mitigate the risk of vacancies or pressure on leasing spreads?
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Given that IOS cap rates have converged closer to traditional industrial properties and competition has increased , how do you intend to maintain attractive acquisition opportunities and achieve your growth objectives in the IOS subsector?
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With a significant 70% mark-to-market rent opportunity in your IOS portfolio , what specific plans do you have to realize this potential, and what challenges do you foresee in achieving these rent increases?
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In light of the rising interest rate environment and the addition of new mortgage loans at higher rates , how are you managing interest rate risk, and what impact do you anticipate this will have on your future interest expenses and overall financial performance?
| Customer | Relationship | Segment | Details |
|---|---|---|---|
Keurig Dr. Pepper | PKST leases properties to this tenant | All | 6.4% of Annualized Base Rent |
Amazon | PKST leases properties to this tenant | All | 5.4% of Annualized Base Rent |
Southern Company Services | PKST leases properties to this tenant | All | 5.1% of Annualized Base Rent |
LPL Holdings | PKST leases properties to this tenant | All | 4.8% of Annualized Base Rent |
Maxar Technologies | PKST leases properties to this tenant | All | 4.3% of Annualized Base Rent |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
51 Industrial Outdoor Storage (IOS) Portfolio | 2024 | Peakstone Realty Trust acquired a portfolio of 51 IOS properties, valued at $490 million, comprising 45 operating assets and 6 redevelopment sites across 14 states. The deal, funded by a credit facility and cash on hand, enhances their presence in the high-growth IOS sector with a potential 70% mark-to-market upside on operating assets. |
Cole Office & Industrial REIT (CCIT II), Inc. | 2021 | Griffin Capital Essential Asset REIT, Inc. completed a stock-for-stock merger valued at about $1.3 billion, converting each CCIT II share into 1.392 Griffin shares. The merger brought together 123 properties across 26 states with a combined value of approximately $5.8 billion, boosting scale, diversification, and operating efficiencies. |
Recent press releases and 8-K filings for PKST.
- Financial performance: Q1 2025 results include approximately $57.0 million in revenue, a net loss attributable to common shareholders of about $(49.4) million, and Core FFO & AFFO of $0.62 per share .
- Acquisition milestone: Completed a significant $490mm IOS portfolio acquisition comprising 51 properties and 440 acres, enhancing the overall industrial portfolio .
- Strategic shift: Accelerating the transition to an industrial REIT with a focus on the IOS subsector, underscored by key leasing transactions including the full leasing of a major IOS redevelopment property and 37 usable redevelopment acres .
- Asset repositioning: Advancing portfolio strategy by selling $144 million of office properties year-to-date and continuing the divestment of non-core office assets .
- Balance sheet strength: Positioned with a net debt/Adjusted EBITDA ratio of 7.0x (actual) and 6.8x (pro forma) as of Q1 2025 .