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EL SEGUNDO, Calif. - Peakstone Realty Trust (NYSE:PKST), currently valued at $468 million in market capitalization, has sold three properties for approximately $177 million as part of its strategic transition to an industrial-focused real estate investment trust, according to a press release statement. According to InvestingPro data, the company’s stock has gained over 17% year-to-date, outperforming many peers in the REIT sector.
The transaction included two office properties in Birmingham, AL and Greenwood Village, CO, plus one industrial property in Sparks Glencoe, MD. The sales were completed at a blended capitalization rate of 7.6%.
With these dispositions, industrial assets now represent over 50% of Peakstone’s annualized base rent (ABR), marking a significant milestone in the company’s portfolio transformation.
"The sale of these office assets marks significant progress in our strategic shift to an industrial REIT," said Michael Escalante, Chief Executive Officer of Peakstone Realty Trust.
Following these transactions, Peakstone’s office segment consists of 20 properties with a real estate net book value of $469 million, representing approximately 30% of the company’s total real estate net book value.
The company indicated its leverage is now aligned with its target level of approximately 6.0x, though it noted this figure may fluctuate as it continues executing its strategy.
Peakstone is specifically targeting growth in the industrial outdoor storage (IOS) sector as part of its repositioning efforts. The company stated it will continue to actively manage its portfolio, which may include selective industrial segment dispositions in the future.
The REIT trades on the New York Stock Exchange under the ticker PKST.
In other recent news, Peakstone Realty Trust reported a significant earnings miss for the second quarter of 2025. The company posted an actual earnings per share (EPS) of -$7.22, falling short of the forecasted -$0.25. Revenue for the quarter reached $54 million. Despite strategic efforts in the industrial segment, the earnings shortfall and a reduction in dividends have affected investor sentiment. In a separate development, Truist Securities upgraded Peakstone Realty Trust from Hold to Buy. The firm also raised its price target from $16.00 to $19.00, citing what it sees as a significant market discount on the company’s suburban office portfolio. This portfolio is valued at approximately $50 per square foot and is 99% leased with a weighted average lease term of 6.2 years. These recent developments highlight the mixed outlook for Peakstone Realty Trust.
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