Peakstone Realty Trust (PKST) AI Stock Analysis

• Market Cap: $431.91M
• Dividend Yield: 7.89%
• Average Volume (3M): 308.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.48
• Revenue Growth: -10.31%
• EPS Growth: 98.15%
• Country: US
• Employees: 38
• Sector: Real Estate
• Sector Strength: 86
• Industry: REIT - Diversified
• EPS (TTM): -0.29
• Shares Outstanding: 36,757,893
• 10 Day Avg. Volume: 291,502
• 30 Day Avg. Volume: 308,350
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.12
• Price to Cash Flow (P/CF): 3.80
• P/FCF Ratio: 3.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $15.00
• Price Target Upside: 31.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Peakstone Realty Trust's score reflects a balance between strategic growth in industrial assets and financial challenges due to high leverage and negative earnings. Positive market momentum and a strong dividend yield support the stock, but operational and financial improvements are necessary for sustainable growth.

Peakstone Realty Trust Business Overview & Revenue Model

Company Description

Peakstone Realty Trust (PKST) is a real estate investment trust (REIT) that focuses on acquiring, managing, and investing in a diversified portfolio of commercial real estate properties. The company primarily operates in the office and industrial sectors, providing leasing, property management, and investment services to tenants and investors. With a strategic emphasis on high-quality assets in key markets, Peakstone Realty Trust aims to deliver sustainable income and long-term value appreciation to its shareholders.

How the Company Makes Money

Peakstone Realty Trust generates revenue primarily through leasing its portfolio of office and industrial properties to tenants. The company earns rental income from these leases, which forms the core of its revenue model. Additionally, PKST may engage in property management services, earning fees for managing properties on behalf of third-party owners. The company also looks to capitalize on value appreciation through strategic property acquisitions and dispositions, which can contribute to earnings through capital gains. Partnerships with key stakeholders in the real estate industry and effective asset management strategies are significant factors that support PKST's revenue growth and operational efficiency.

Peakstone Realty Trust Financial Statement Overview

Summary

Peakstone Realty Trust faces financial challenges with declining revenues, negative net income, and high leverage. Despite positive operating cash flows, the company must manage its high debt levels and operational inefficiencies.

Income Statement

Peakstone Realty Trust's income statement reveals significant challenges. The company has experienced declining revenues over the past two years, with a drop from $416.5 million in 2022 to $228.1 million in 2024. This has resulted in negative net income in recent years, with a net loss of $10.4 million in 2024. Although the gross profit margin remains relatively high, the lack of EBIT in 2024 and fluctuating EBITDA margins indicate operational inefficiencies and potential cost management issues.

Balance Sheet

The balance sheet shows a highly leveraged position, with a debt-to-equity ratio of approximately 1.33 in 2024. Stockholders' equity has decreased, reflecting declining asset values and persistent liabilities. The equity ratio stands at around 40.54%, indicating a moderate level of financial stability. Despite a strong asset base, the high debt levels pose a risk to financial flexibility.

Cash Flow

The cash flow statement indicates some resilience, with stable free cash flow of $94.7 million in 2024, an improvement from negative free cash flow in 2022. Operating cash flow has remained positive, reflecting effective cash management from core operations. However, the high investing cash outflows and negative net income raise concerns about long-term cash sustainability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
228.07M	254.28M	416.49M	459.87M	397.45M
	Gross Profit
184.35M	89.65M	326.72M	357.37M	302.40M
	EBIT
0.00	45.54M	81.20M	102.19M	93.26M
	EBITDA
145.67M	-427.27M	271.94M	306.30M	254.32M
	Net Income Common Stockholders
-10.43M	-550.58M	-401.67M	11.50M	-4.04M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
146.51M	418.74M	233.18M	168.62M	168.95M
	Total Assets
2.68B	2.79B	3.63B	5.27B	4.15B
	Total Debt
1.44B	1.48B	1.53B	2.58B	2.19B
	Net Debt
1.29B	1.09B	1.30B	2.41B	2.02B
	Total Liabilities
1.52B	1.59B	1.65B	2.77B	2.41B
	Stockholders Equity
1.09B	1.11B	1.81B	2.28B	1.51B
Cash Flow		Free Cash Flow
94.66M	89.15M	-999.13M	181.49M	163.01M
	Operating Cash Flow
94.66M	89.15M	152.68M	204.98M	164.54M
	Investing Cash Flow
-215.84M	308.56M	1.10B	-62.81M	-24.97M
	Financing Cash Flow
-125.62M	-234.64M	-1.20B	-159.34M	-49.52M

Peakstone Realty Trust Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PKST, the sentiment is Negative. The current price of 11.4 is below the 20-day moving average (MA) of 12.33, above the 50-day MA of 11.37, and below the 200-day MA of 11.97, indicating a neutral trend. The MACD of 0.40 indicates Positive momentum. The RSI at 63.27 is Neutral, neither overbought nor oversold. The STOCH value of 26.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PKST.

Peakstone Realty Trust Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
O	80 Outperform	$48.14B	55.12	2.40%	5.99%	29.49%	-22.38%
CTRE	79 Outperform	$5.14B	34.13	5.76%	4.52%	36.06%	61.55%
NHI	77 Outperform	$3.33B	22.86	10.53%	5.24%	4.88%	0.41%
PKST	63 Neutral	$431.91M	―	-0.95%	7.89%	-10.31%	98.15%
VTR	63 Neutral	$29.46B	336.53	0.80%	2.89%	9.48%	―
Sector *	61 Neutral	$4.31B	16.14	-3.60%	11.88%	6.17%	-20.99%
MPW	56 Neutral	$3.22B	―	-38.69%	7.78%	14.19%	-331.18%

Peakstone Realty Trust Corporate Events

Peakstone Realty Trust’s Strategic Financial and Leadership Moves

Peakstone Realty Trust made significant financial moves, including a $175 million senior unsecured term loan set to mature in 2027, with flexible interest rates based on SOFR. The company also expanded its leadership team by appointing Cindy Mai as Chief Accounting Officer, offering her a competitive compensation package. Additionally, Peakstone secured mortgage loans for properties in Florida, Georgia, and Illinois, with fixed interest rates and terms ranging from 5 to 7.5 years, ensuring steady interest-only payments.

Peakstone Realty Trust Expands with Major Acquisition

Peakstone Realty Trust has expanded its industrial portfolio by acquiring 51 industrial outdoor storage properties from a joint venture between Alterra IOS and J.P. Morgan Asset Management for $490 million. This strategic acquisition boosts Peakstone’s presence in a high-growth sector characterized by favorable dynamics and supply constraints, offering a potential 70% mark-to-market opportunity. The portfolio, spanning 440 acres across 14 states, is nearly fully leased to diverse tenants, enhancing Peakstone’s long-term growth and positioning it favorably within the industrial market.