Peakstone Realty Trust Files Q3 2024 10-Q

TL;DR

Peakstone Realty Trust (fka Griffin Realty Trust) filed its Q3 2024 10-Q. Check financials.

AI Summary

Peakstone Realty Trust filed its 10-Q for the period ending September 30, 2024. The company, formerly known as Griffin Realty Trust, Inc., reported its financial performance for the third quarter of 2024. Key financial details and operational updates are provided in this filing.

Why It Matters

This filing provides investors with crucial financial data and operational insights into Peakstone Realty Trust's performance for the third quarter of 2024, impacting investment decisions.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing with no immediate red flags.

Key Players & Entities

• Peakstone Realty Trust (company) — Filer
• Griffin Realty Trust (company) — Former company name
• Griffin Capital Essential Asset REIT, Inc. (company) — Previous former company name
• 20240930 (date) — Period of report
• 20241030 (date) — Filing date

FAQ

Filing Documents

• pkst-20240930.htm (10-Q) — 2149KB
• pkst9302024ex311_me.htm (EX-31.1) — 11KB
• pkst9302024ex312_jb.htm (EX-31.2) — 11KB
• pkst9302024ex321_me.htm (EX-32.1) — 5KB
• pkst9302024ex322_jb.htm (EX-32.2) — 5KB
• 0001600626-24-000104.txt ( ) — 9904KB
• pkst-20240930.xsd (EX-101.SCH) — 69KB
• pkst-20240930_cal.xml (EX-101.CAL) — 104KB
• pkst-20240930_def.xml (EX-101.DEF) — 308KB
• pkst-20240930_lab.xml (EX-101.LAB) — 768KB
• pkst-20240930_pre.xml (EX-101.PRE) — 560KB
• pkst-20240930_htm.xml (XML) — 1466KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements: Consolidated Balance Sheets as of September 30, 2024 (unaudited) and December 31, 2023 5 Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2024 and 2023 (unaudited) 6 Consolidated Statements of Comprehensive Loss for the Three and Nine Months Ended September 30, 2024 and 2023 (unaudited) 7 Consolidated Statements of Equity for the Three and Nine Months Ended September 30, 2024 and 2023 (unaudited) 8 Consolidated Statements of Cash Flows for the Nine Months Ended Sep tember 30, 2024 and 2023 (unaudited) 9

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 11

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 30

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 52

Controls and Procedures

Item 4. Controls and Procedures 52

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 53

Risk Factors

Item 1A. Risk Factors 54

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 55

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 55

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 55

Other Information

Item 5. Other Information 55

Exhibits

Item 6. Exhibits 55

SIGNATURES

SIGNATURES 57 2 Table of Contents CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). We intend for all such forward-looking statements to be covered by the applicable safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," or "potential" or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions. The forward-looking statements contained in this Quarterly Report on Form 10-Q reflect our current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause our actual results to differ significantly from those expressed in any forward-looking statement. The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: general economic and financial conditions; market volatility; inflation; any potential recession or threat of recession; intere

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION PEAKSTONE REALTY TRUST CONSOLIDATED BALANCE SHEETS (Unaudited; in thousands, except units and share amounts) September 30, 2024 December 31, 2023 ASSETS Cash and cash equivalents $ 241,550 $ 391,802 Restricted cash 25,181 9,208 Real estate: Land 212,312 231,175 Building and improvements 1,836,900 1,968,314 Tenant origination and absorption cost 370,946 402,251 Construction in progress 1,017 8,371 Total real estate 2,421,175 2,610,111 Less: accumulated depreciation and amortization ( 554,820 ) ( 550,552 ) Total real estate, net 1,866,355 2,059,559 Intangible assets, net 27,603 29,690 Deferred rent receivable 65,511 63,272 Deferred leasing costs, net 16,842 19,112 Goodwill 74,052 78,647 Right of use assets 33,369 33,736 Interest rate swap asset 12,042 26,942 Other assets 45,373 27,446 Real estate assets and other assets held for sale, net 36,456 50,211 Total assets $ 2,444,334 $ 2,789,625 LIABILITIES AND EQUITY Debt, net $ 1,168,010 $ 1,435,923 Interest rate swap liability 10,255 — Distributions payable 8,436 8,344 Due to related parties 589 573 Intangible liabilities, net 13,884 16,023 Lease liability 46,860 46,281 Accrued expenses and other liabilities 62,862 78,229 Liabilities held for sale 1,267 539 Total liabilities 1,312,163 1,585,912 Commitments and contingencies (Note 13) Shareholders' equity: Common shares, $ 0.001 par value; shares authorized, 800,000,000 ; shares outstanding in the aggregate, 36,377,254 and 36,304,145 as of September 30, 2024 and December 31, 2023, respectively 37 36 Additional paid-in capital 2,996,900 2,990,085 Cumulative distributions ( 1,100,893 ) ( 1,076,000 ) Accumulated deficit ( 850,992 ) ( 827,854 ) Accumulated other comprehensive income 2,791 25,817 Total shareholders' equity 1,047,843 1,112,084 Noncontrolling interests 84,328 91,629 Total equity 1,132,171 1,203,713 Total liabilities and equity $ 2,444,334 $ 2,789,625 See accompanying notes. 5

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 30, 2024 (Unaudited; dollars in thousands unless otherwise noted and excluding per share amounts) 1. Organization Peakstone Realty Trust ("PKST" or the "Company") is an internally managed, publicly traded real estate investment trust ("REIT") that owns and operates a high-quality, newer-vintage portfolio of predominantly single-tenant industrial and office properties located in diverse, strategic markets. These assets are generally leased to creditworthy tenants under long-term net lease agreements with contractual rent escalations. The Company's fiscal year-end is December 31. PKST OP, L.P., our operating partnership (the "Operating Partnership"), owns directly and indirectly all of the Company's assets. As of September 30, 2024, the Company owned approximately 91.9 % of the outstanding common units of limited partnership interest in the Operating Partnership ("OP Units"). As of September 30, 2024, the Company's wholly-owned portfolio comprised 62 properties located in 22 states, which are reported across three segments: Industrial ( 19 properties), Office ( 33 properties), and Other ( 10 properties). 2. Basis of Presentation and Summary of Significant Accounting Policies There have been no significant changes to the Company's accounting policies since the Company filed its audited financial statements in its Annual Report on Form 10-K for the year ended December 31, 2023. For further information about the Company's accounting policies, refer to the Company's filed Annual Report on Form 10-K for the year ended December 31, 2023 with the Securities and Exchange Commission (the "SEC"). The accompanying unaudited consolidated financial statements of the Company are prepared by management on the accrual basis of accounting and in accordance with generally accepted accounting principles in the United States ("GAAP") for interim financial information as contained in the Financial Accounting Standards Board (

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 30, 2024 (Unaudited; dollars in thousands unless otherwise noted and excluding per share amounts) Per Share Data Basic earnings per share is computed by dividing net (loss) income attributable to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net (loss) income attributable to common shareholders by the weighted-average number of outstanding common shares plus the potential effect of any dilutive securities (e.g. unvested time-based restricted share units, unvested time-based restricted shares (together, "Unvested Restricted Shares"), OP Units, etc.), using the more dilutive of either the two-class method or the treasury stock method. For all periods presented, (a) OP Units were excluded from the dilutive earnings per share computation because they were not dilutive, and (b) using the treasury stock method, the Unvested Restricted Shares (in the amounts set forth below) were exclud

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