Peakstone Realty Trust

Total revenue from continuing operations was approximately $25.8 million, excluding approximately $25.2 million of revenue from office discontinued operations. Net income attributable to common shareholders was approximately $3.5 million, or $0.09 per share. FFO was approximately $18.3 million, or $0.46 per share; core FFO was approximately $19.1 million, or $0.48 per share; and AFFO was approximately $18.6 million, or $0.47 per share. Same-store cash NOI increased 3.7% year over year. Quarter-end total liquidity was approximately $438 million, including $326 million of cash and $112 million of available revolver capacity. Total debt was approximately $1.05 billion, net debt was approximately $725 million, and after post-quarter debt paydown of $240 million, pro forma total debt was $811 million, net debt was $615 million, liquidity was $420 million, and net debt to adjusted EBITDAre was about 5.4x. Guidance/comments: remaining office sales are expected to generate $300 million to $350 million of proceeds, with $250 million to $300 million planned for debt paydown; the board approved a fourth-quarter dividend of $0.10 per share payable January 19.

Mike Escalante framed the quarter as another step in Peakstone’s transformation into an industrial-only REIT focused on industrial outdoor storage. He emphasized disciplined office sales, strong IOS leasing, and targeted acquisitions, saying these moves are strengthening the balance sheet and creating value. His tone was confident and upbeat, especially around IOS fundamentals, tenant demand, and the company’s ability to execute across the portfolio.

Javier Bitar highlighted the quarter’s reported numbers and the balance sheet impact of ongoing asset sales. He cited $25.8 million of continuing-operating revenue, $3.5 million of net income, $18.3 million of FFO, $19.1 million of core FFO, and $18.6 million of AFFO, along with 3.7% same-store cash NOI growth. He also detailed $438 million of total liquidity at quarter end, $1.05 billion of debt outstanding, 76% fixed-rate debt including $550 million of forward swaps at a fixed 3.58%, and a 5.46% weighted average interest rate; pro forma after the $240 million paydown, leverage was 5.4x, below the 6x target.

Analysts focused on whether debt paydown would slow IOS acquisition activity, how much competition the company is seeing for IOS assets, what level of same-store NOI growth is sustainable, and whether leasing required more tenant improvement spending than it appears. Management said it will remain disciplined on growth and balance-sheet management, does not think competition has necessarily increased but that there is more acceptance from buyers and lenders, and declined to give same-store NOI guidance because the business is still changing. On leasing economics, Mike Escalante said the company has been surprised by how little money it has had to spend, with many deals requiring no TI and little downtime.