Peakstone Realty Trust (NYSE: PKST) reported a net loss of $11.4 million for the fiscal year ending December 31, 2024, a significant improvement compared to a net loss of $605.1 million in the previous year. The company's total revenue for 2024 was approximately $228.1 million, down from $254.3 million in 2023. The decrease in revenue was attributed to the sale of non-core assets and a strategic shift towards industrial properties, particularly in the industrial outdoor storage (IOS) sector. The company’s total assets as of December 31, 2024, were valued at $2.68 billion, a decrease from $2.79 billion in 2023.
In 2024, Peakstone Realty Trust made significant strategic moves, including the acquisition of a portfolio of 51 IOS properties for $490 million, which added 440 usable acres across 14 states to its portfolio. The company also sold 19 properties for gross proceeds of approximately $317.4 million, resulting in a net gain of $38.4 million. These transactions reflect the company's ongoing strategy to divest non-core assets while enhancing its focus on industrial properties. As of the end of 2024, Peakstone's portfolio consisted of 103 properties, including 97 operating properties and six redevelopment properties.
Operationally, Peakstone Realty Trust reported a total of 837,400 square feet in new leases and lease extensions during 2024, with a weighted average lease term of 4.5 years. The company achieved a weighted average releasing spread of 32% on a GAAP basis and 23% on a cash basis. The company’s focus on industrial properties is expected to drive future growth, as demand for such assets remains strong due to trends like onshoring and e-commerce growth. However, the office segment, which constituted approximately 60.9% of the portfolio, continues to face challenges due to evolving workplace preferences and declining demand.
Looking ahead, Peakstone Realty Trust aims to continue its strategic repositioning towards industrial assets while maintaining financial flexibility. The company has approximately $146.5 million in cash and cash equivalents as of December 31, 2024, and a credit facility of $1.1 billion, with the option to increase commitments to $1.3 billion. The management remains cautious about market conditions but is optimistic about the long-term demand for industrial real estate, particularly in the IOS sector. The company plans to prioritize investments in this area while managing its debt levels and operational expenses effectively.
About Peakstone Realty Trust
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