Peakstone Realty Trust (NYSE: PKST) recently announced the completion of the sale of two office properties in Birmingham, AL and Greenwood Village, CO, as well as one industrial property in Sparks Glencoe, MD for approximately $177 million. These sales were carried out at a blended cap rate of 7.6%. This move signifies the company's strategic transition to an industrial real estate investment trust (REIT) and signals a significant shift in its portfolio composition.
Following these transactions, the industrial annualized base rent (ABR) now represents over 50% of the total ABR for Peakstone Realty Trust. This shift reflects a deliberate move towards the industrial sector and is in line with the company's long-term strategy.
As a result of the office sales, the company's office segment now consists of 20 properties with a real estate net book value of $469 million, constituting around 30% of the company’s total real estate net book value. This indicates a substantial reduction in the office segment's contribution to the overall real estate portfolio.
The company's CEO, Michael Escalante, emphasized that these transactions have led to an improvement in leverage, bringing it in line with the company's target level of approximately 6.0x. This optimization of leverage is aligned with the company's strategic objectives and reflects its commitment to delivering growth and value for shareholders.
Peakstone Realty Trust continues to actively manage its portfolio, signaling a potential for further strategic dispositions within the industrial segment as part of its ongoing portfolio reshaping efforts.
Peakstone Realty Trust (NYSE: PKST) is executing a strategic transition to an industrial REIT, with a focus on growth in the industrial outdoor storage sector. The company remains committed to actively reshaping its portfolio to drive value creation in line with its strategic objectives. Today the company's shares have moved 9.02% to a price of $13.66. Check out the company's full 8-K submission here.
