- Executed 116,600 Square Feet of Lease
Renewals -
- Year-to-Date Sales Exceed $308 Million -
- Continued Deleveraging of Balance Sheet -
- Increased Liquidity to Over Half a Billion
Dollars -
Peakstone Realty Trust ("PKST" or the "Company") (NYSE: PKST), a
real estate investment trust focused on owning and operating a
high-quality, newer-vintage portfolio of predominantly
single-tenant industrial and office properties, today announced its
financial results for the quarter ended September 30, 2023.
Third Quarter 2023
Highlights
- Revenue of approximately $61.7 million.
- Net loss of approximately $(139.9) million; net loss
attributable to common shareholders of approximately $(127.6)
million, or $(3.55) per basic and diluted share. Net loss for the
quarter was impacted primarily due to a non-cash impairment of the
office joint venture interest.
- Funds from Operations (“FFO”) 1 of $(2.79) per basic and
diluted share/unit, including $(3.27) per basic and diluted
share/unit of impact primarily due to a non-cash impairment of the
office joint venture interest.
- Adjusted Funds from Operation ("AFFO")1 of $0.78 per basic and
diluted share/unit.
- Same Store Cash Net Operating Income (“Same Store Cash NOI”)2
of approximately $48.1 million.
- Board of Trustees declared a dividend of $0.225 per common
share for the third quarter.
“We continue to successfully implement our go-forward strategy,”
stated Michael J. Escalante, PKST's Chief Executive Officer.
“Through a combination of our resilient cash flows and the
disposition of non-core assets, we are reducing leverage and
working towards achieving an investment grade balance sheet. During
the third quarter, we improved the profile of our ‘Other’ segment
through the disposition of one property and the renewal of two
leases. Looking forward, we are well-positioned to continue the
execution of our business plan despite the challenging
macroeconomic environment.”
Portfolio
As of September 30, 2023, the Company’s wholly-owned portfolio:
(i) consisted of 73 properties located in 24 states with a weighted
average remaining lease term of approximately 6.3 years; (ii) was
96.4% leased based on rentable square feet with an average economic
occupancy of 95.9% comprised of Industrial (100%), Office (97.0%),
and Other (83.1%), and; (iii) generated approximately 60.1% of
annualized base rent3 pursuant to leases with respect to which the
tenant, the guarantor or a non-guarantor parent of the tenant has
an investment grade credit rating or what management believes is a
generally equivalent rating4.
Transaction Activity
During the third quarter, in the “Other” segment, the Company
sold one vacant office property for gross proceeds of $8.3 million.
The Company recognized a net gain of approximately $3.7 million as
a result of this sale. For the nine months ended September 30,
2023, the Company sold nine properties for gross proceeds of
approximately $309 million.
Leasing Activity
During the third quarter, in the “Other” segment, the Company
executed office lease renewals totaling 116,600 square feet
consisting of (i) a 7.5-year early lease renewal totaling 56,600
square feet, and (ii) a four-month lease renewal totaling 60,000
square feet.
Financial/Operating
Results
Revenue
In the third quarter, total revenue was approximately $61.7
million compared to $101.3 million for the same quarter last year.
This $39.6 million change in revenue is primarily due to the
disposition of 48 properties in 2022 and nine properties in the
first three quarters of 2023.
Net (Loss) Income Attributable to Common Shareholders
In the third quarter, net loss attributable to common
shareholders was approximately $(127.6) million, or $(3.55) per
basic and diluted share, compared to net loss attributable to
common shareholders of approximately $(111.2) million, or $(3.08)
per basic and diluted share, for the same quarter last year. The
difference is primarily due to: (i) a $144.6 million net loss from
the interest in the office joint venture in the quarter, (ii) a
$39.6 million decrease in revenue resulting from property
dispositions in 2022 and 2023, offset by (iii) a $95.5 million net
loss from disposition of assets in the same quarter last year.
FFO
In the third quarter, FFO was approximately $(110.2) million, or
$(2.79) per basic and diluted share/unit, compared to $27.0
million, or $0.68 per basic and diluted share/unit, for the same
quarter last year. The difference is primarily due to: (i) the
$129.3 million non-cash impairment of the interest in the office
joint venture, and (ii) the change in revenue resulting from
property dispositions in 2022 and 2023. Excluding the $129.3
million non-cash impairment, FFO for the third quarter would have
been approximately $19.1 million or $0.48 per basic and diluted
share/unit.
AFFO
In the third quarter, AFFO was approximately $30.7 million, or
$0.78 per basic and diluted share/unit, compared to $43.0 million,
or $1.08 per basic and diluted share/unit, for the same quarter
last year. The difference is primarily due to the change in revenue
resulting from property dispositions in 2022 and 2023.
Same Store Cash NOI
In the third quarter, Same Store Cash NOI was approximately
$48.1 million compared to $46.7 million for the same quarter last
year, an increase of approximately 3.0%.
Balance Sheet
During the third quarter, using cash on hand, the Company paid
off one secured loan which had an outstanding principal balance of
approximately $17.1 million and an interest rate of 6.08%.
As of September 30, 2023, the Company had $364.4 million in cash
on hand and $152.1 million of available capacity on its revolving
credit facility, for total liquidity of approximately $517 million.
The increase in available revolver capacity during the quarter was
primarily due to the addition of six previously unencumbered
properties to the borrowing base.
As of September 30, 2023, the Company’s total consolidated debt
was approximately $1.4 billion. Including the effect of the
Company’s interest rate swap agreements with a total notional
amount of $750.0 million, the Company’s weighted average interest
rate as of September 30, 2023 was 4.16% for both the Company’s
fixed-rate and variable-rate debt combined.
Dividends
The Board of Trustees approved a distribution for the quarter
ended December 31, 2023 in the amount of $0.225 per common share
that is payable on January 17, 2024 to holders of record of the
Company’s common shares on December 29, 2023.
The Company paid a distribution for the third quarter in the
amount of $0.225 per common share on October 17, 2023 to holders of
record of the Company’s common shares on September 30, 2023.
Third Quarter 2023 Earnings
Webcast
PKST will host a webcast to present the third quarter results on
Thursday, November 9, 2023 at 5:00 p.m. Eastern Time. To access the
webcast, please visit
https://investors.pkst.com/investors/events-and-presentations/events/event-details/2023/Third-Quarter-2023-Earnings-Call-2023-hBhydrO3gj/default.aspx
at least ten minutes prior to the scheduled start time to register
and install any necessary software. A replay of the webcast will be
available on the Company’s website shortly after the initial
presentation. To access by phone, please use the following dial-in
numbers. For domestic callers, please dial 1-877-407-9716; for
international callers, please dial 1-201-493-6779.
About Peakstone Realty
Trust
Peakstone Realty Trust (NYSE: PKST) is an internally managed
real estate investment trust (REIT) that owns and operates a
high-quality, newer-vintage portfolio of predominantly
single-tenant industrial and office properties. These assets are
generally leased to creditworthy tenants under long-term net lease
agreements with contractual rent escalations and are situated in
primarily high-growth, strategic coastal and sunbelt markets.
Additional information is available at www.pkst.com.
Cautionary Statement Regarding Forward-Looking
Statements
This document 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 document
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; interest rates; recent
and ongoing disruption in the debt and banking markets; occupancy,
rent deferrals and the financial condition of our tenants; whether
work-from-home trends or other factors will impact the
attractiveness of industrial and/or office assets; whether we will
be successful in renewing leases as they expire; future financial
and operating results, plans, objectives, expectations and
intentions; expected sources of financing, including the ability to
maintain the commitments under our revolving credit facility, and
the availability and attractiveness of the terms of any such
financing; legislative and regulatory changes that could adversely
affect our business; our future capital expenditures, operating
expenses, net income, operating income, cash flow and developments
and trends of the real estate industry; whether we will be
successful in the pursuit of our business plan, including any
dispositions; whether we will succeed in our investment objectives;
any fluctuation and/or volatility of the trading price of our
common shares; risks associated with our dependence on key
personnel whose continued service is not guaranteed; and other
factors, including those risks disclosed in “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and
Results of Operations” in our most recent Annual Report on Form
10-K or Quarterly Report on Form 10-Q filed with the U.S.
Securities and Exchange Commission.
While forward-looking statements reflect our good faith beliefs,
assumptions and expectations, they are not guarantees of future
performance. The forward-looking statements speak only as of the
date of this document. We disclaim any obligation to publicly
update or revise any forward-looking statement to reflect changes
in underlying assumptions or factors, of new information, data or
methods, future events or other changes after the date of this
document, except as required by applicable law. We caution
investors not to place undue reliance on any forward-looking
statements, which are based only on information currently available
to us.
Notice Regarding Non-GAAP Financial Measures. In addition to
U.S. GAAP financial measures, this document contains and may refer
to certain non-GAAP financial measures. These non-GAAP financial
measures are in addition to, not a substitute for or superior to,
measures of financial performance prepared in accordance with GAAP.
These non-GAAP financial measures should not be considered
replacements for, and should be read together with, the most
comparable GAAP financial measures. Reconciliations to the most
directly comparable GAAP financial measures and statements of why
management believes these measures are useful to investors are
included in this Appendix if the reconciliation is not presented on
the page in which the measure is published.
___________________________________
1 See below for the definitions of FFO and AFFO and for a
reconciliation of FFO and AFFO to the most directly comparable GAAP
financial measure. 2 Same Store Cash Net Operating Income is a
non-GAAP financial measure. See below for the definition of Same
Store Cash Net Operating Income and for a reconciliation of Same
Store Cash Net Operating Income. 3 “Annualized base rent” or “ABR”
means the contractual base rent excluding abatement periods and
deducting base year operating expenses for gross and modified gross
leases as of September 30, 2023, unless otherwise specified,
multiplied by 12 months. For properties in the Company's portfolio
that had rent abatement periods as of September 30, 2023, we used
the monthly contractual base rent payable following expiration of
the abatement. 4 “Investment grade” means an investment grade
credit rating from a NRSRO approved by the U.S. Securities and
Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P
Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit
rating (e.g., Bloomberg’s default risk rating) that management
believes is generally equivalent to an NRSRO investment grade
rating; management can provide no assurance as to the comparability
of these ratings methodologies or that any particular rating for a
company is indicative of the rating that a single NRSRO would
provide in the event that it rated all companies for which the
Company provides credit ratings; to the extent such companies are
rated only by non-NRSRO ratings providers, such ratings providers
may use methodologies that are different and less rigorous than
those applied by NRSROs. In the context of Peakstone’s portfolio,
references to “investment grade” include, and credit ratings
provided by Peakstone may refer to, tenants, guarantors, and
non-guarantor parent entities. There can be no assurance that such
guarantors or parent entities will satisfy the tenant’s lease
obligations, and accordingly, any such credit rating may not be
indicative of the creditworthiness of the Company's tenants.
PEAKSTONE REALTY TRUST
CONSOLIDATED BALANCE
SHEETS
(Unaudited; in thousands,
except units and share amounts)
September 30, 2023
December 31, 2022
ASSETS
Cash and cash equivalents
$
364,446
$
233,180
Restricted cash
5,651
4,764
Real estate:
Land
244,369
327,408
Building and improvements
2,042,347
2,631,965
Tenant origination and absorption cost
418,896
535,889
Construction in progress
2,197
1,994
Total real estate
2,707,809
3,497,256
Less: accumulated depreciation and
amortization
(546,732
)
(644,639
)
Total real estate, net
2,161,077
2,852,617
Investments in unconsolidated entity
—
178,647
Intangible assets, net
30,572
33,861
Deferred rent receivable
63,874
79,572
Deferred leasing costs, net
17,087
26,507
Goodwill
94,678
94,678
Right of use assets
34,175
35,453
Interest rate swap asset
39,687
41,404
Other assets
28,962
31,877
Real estate assets and other assets held
for sale, net
—
20,816
Total assets
$
2,840,209
$
3,633,376
LIABILITIES AND EQUITY
Debt, net
1,442,003
1,485,402
Distributions payable
8,296
12,402
Due to related parties
706
1,458
Intangible liabilities, net
17,104
20,658
Lease liability
46,368
46,519
Accrued expenses and other liabilities
80,452
80,802
Total liabilities
1,594,929
1,647,241
Commitments and contingencies (Note
13)
Perpetual convertible preferred shares
—
125,000
Noncontrolling interests subject to
redemption; zero and 61,788 units as of September 30, 2023 and
December 31, 2022, respectively
—
3,812
Shareholders’ equity:
Common shares, $0.001 par value; shares
authorized, 800,000,000; shares outstanding in the aggregate,
35,997,549 and 35,999,898 as of September 30, 2023 and December 31,
2022, respectively
36
36
Additional paid-in capital
2,967,635
2,948,600
Cumulative distributions
(1,067,807
)
(1,036,678
)
Accumulated deficit
(807,965
)
(269,926
)
Accumulated other comprehensive income
37,434
40,636
Total shareholders’ equity
1,129,333
1,682,668
Noncontrolling interests
115,947
174,655
Total equity
1,245,280
1,857,323
Total liabilities and equity
$
2,840,209
$
3,633,376
PEAKSTONE REALTY TRUST
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited; in thousands,
except share and per share amounts)
Three Months Ended September
30,
2023
2022
Revenue:
Rental income
$
61,713
$
101,330
Expenses:
Property operating expense
7,829
13,716
Property tax expense
5,077
9,737
Property management fees
440
823
General and administrative expenses
9,653
9,521
Corporate operating expenses to related
parties
257
140
Depreciation and amortization
25,003
42,628
Real estate impairment provision
—
10,697
Total expenses
48,259
87,262
Income before other income (expenses)
13,454
14,068
Other income (expenses):
Interest expense
(16,126
)
(24,283
)
Debt breakage cost
—
(13,249
)
Other income (loss), net
3,654
(162
)
Net loss from investment in unconsolidated
entity
(144,598
)
—
Net gain (loss) from disposition of
assets
3,748
(95,513
)
Transaction expenses
(80
)
(234
)
Net loss
(139,948
)
(119,373
)
Distributions to redeemable preferred
shareholders
—
(2,516
)
Preferred units redemption
—
—
Net loss attributable to noncontrolling
interests
12,353
10,710
Net loss attributable to controlling
interests
(127,595
)
(111,179
)
Distributions to redeemable noncontrolling
interests attributable to common shareholders
—
(45
)
Net loss attributable to common
shareholders
$
(127,595
)
$
(111,224
)
Net loss attributable to common
shareholders per share, basic and diluted
$
(3.55
)
$
(3.08
)
Weighted average number of common shares
outstanding, basic and diluted
35,975,483
36,081,363
Cash distributions declared per common
share
$
0.23
$
0.80
PEAKSTONE REALTY TRUST Funds from
Operations and Adjusted Funds from Operations (Unaudited; in
thousands except share and per share amounts)
FFO and AFFO are non-GAAP financial measures that we believe are
useful to investors because they are widely accepted industry
measures used by analysts and investors to compare the operating
performance of REITs. We compute FFO in accordance with the
definition adopted by the Board of Governors of the National
Association of Real Estate Investment Trusts ("NAREIT"). FFO is
defined as net income or loss computed in accordance with GAAP,
excluding extraordinary items, as defined by GAAP, and gains and
losses from sales of depreciable real estate assets, adding back
impairment write-downs of depreciable real estate assets, plus real
estate related depreciation and amortization (excluding
amortization of deferred financing costs and depreciation of
non-real estate assets), and after adjustment for unconsolidated
partnerships, joint ventures and preferred distributions. Because
FFO calculations exclude such items as depreciation and
amortization of depreciable real estate assets and gains and losses
from sales of depreciable real estate assets (which can vary among
owners of identical assets in similar conditions based on
historical cost accounting and useful-life estimates), they
facilitate comparisons of operating performance between periods and
between other REITs. As a result, the Company believes that the use
of FFO, together with the required GAAP presentations, provides a
more complete understanding of the Company's performance relative
to its competitors and a more informed and appropriate basis on
which to make decisions involving operating, financing, and
investing activities. It should be noted, however, that other REITs
may not define FFO in accordance with the current NAREIT definition
or may interpret the current NAREIT definition differently than the
Company does, making comparisons less meaningful.
Additionally, the Company uses AFFO as a non-GAAP financial
measure to evaluate the Company's operating performance. AFFO
excludes non-routine and certain non-cash items such as revenues in
excess of cash received, amortization of share-based compensation
net, deferred rent, amortization of in-place lease valuation,
acquisition-related costs, financed termination fee, net of
payments received, gain or loss from the extinguishment of debt,
unrealized gains (losses) on derivative instruments, write-off
transaction costs and other one-time transactions. FFO and AFFO
have been revised to include amounts available to both common
shareholders and limited partners for all periods presented.
AFFO is a measure used among the Company's peer group. The
Company also believes that AFFO is a recognized measure of
sustainable operating performance by the REIT industry. Further,
the Company believes AFFO is useful in comparing the sustainability
of its operating performance with the sustainability of the
operating performance of other real estate companies.
Management believes that AFFO is a beneficial indicator of its
ongoing portfolio performance and ability to sustain its current
distribution level. More specifically, AFFO isolates the financial
results of the Company's operations. AFFO, however, is not
considered an appropriate measure of historical earnings as it
excludes certain significant costs that are otherwise included in
reported earnings. Further, since the measure is based on
historical financial information, AFFO for the period presented may
not be indicative of future results or the Company's future ability
to make or sustain distributions. By providing FFO and AFFO, the
Company presents information that assists investors in aligning
their analysis with management’s analysis of long-term operating
activities.
For all of these reasons, the Company believes the non-GAAP
measures of FFO and AFFO, in addition to net income (loss) are
helpful supplemental performance measures and useful to investors
in evaluating the performance of the Company's real estate
portfolio. However, a material limitation associated with FFO and
AFFO is that they are not indicative of the Company's cash
available to fund distributions since other uses of cash, such as
capital expenditures at the Company's properties and principal
payments of debt, are not deducted when calculating FFO and AFFO.
The use of AFFO as a measure of long-term operating performance on
value is also limited if the Company does not continue to operate
under its current business plan as noted above. FFO and AFFO should
not be viewed as a more prominent measure of performance than net
income (loss) and each should be reviewed in connection with GAAP
measurements.
Neither the SEC, NAREIT, nor any other applicable regulatory
body has opined on the acceptability of the adjustments
contemplated to adjust FFO in order to calculate AFFO and its use
as a non-GAAP performance measure. In the future, NAREIT may decide
to standardize the allowable exclusions across the REIT industry,
and the Company may have to adjust the calculation and
characterization of this non-GAAP measure.
Three Months Ended September
30,
2023
2022
Net loss
$
(139,948
)
$
(119,373
)
Adjustments:
Depreciation of building and
improvements
16,351
26,268
Amortization of leasing costs and
intangibles
8,750
16,456
Impairment provision, real estate
—
10,697
Equity interest of depreciation of
building and improvements - unconsolidated entity
8,365
—
Gain from disposition of assets, net
(3,748
)
95,513
FFO
(110,230
)
29,561
Distribution to redeemable preferred
shareholders
—
(2,516
)
Preferred units redemption charge
—
—
FFO attributable to common shareholders
and limited partners
$
(110,230
)
$
27,045
Reconciliation of FFO to AFFO:
FFO attributable to common shareholders
and limited partners
$
(110,230
)
$
27,045
Adjustments:
Revenues in excess of cash received,
net
(822
)
(3,521
)
Amortization of share-based
compensation
2,444
2,698
Deferred rent - ground lease
428
490
Unrealized loss (gain) on investments
89
22
Amortization of above/(below) market rent,
net
(421
)
(436
)
Amortization of debt premium/(discount),
net
101
103
Amortization of ground leasehold
interests
(98
)
(95
)
Amortization of below tax benefit
amortization
377
377
Amortization of deferred financing
costs
662
920
Company's share of amortization of
deferred financing costs- unconsolidated entity
10,774
—
Company's share of revenues in excess of
cash received (straight-line rents) - unconsolidated entity
(631
)
—
Company's share of amortization of above
market rent - unconsolidated entity
(218
)
—
Write-off of transaction costs
83
—
Loss on debt breakage costs — write-off of
deferred financing costs
—
1,771
Transaction expenses
80
234
Debt breakage costs
—
13,249
Amortization of lease inducements
—
105
Preferred units redemption charge
—
—
Impairment provision, investment in
unconsolidated entity
129,334
—
Write-off of Company's share of
accumulated other comprehensive income - unconsolidated entity
(1,226
)
—
AFFO available to common shareholders and
limited partners
$
30,726
$
42,962
FFO per share, basic and diluted
$
(2.79
)
$
0.68
AFFO per share, basic and diluted
$
0.78
$
1.08
Weighted-average common shares outstanding
- basic and diluted EPS
35,975,483
36,081,363
Weighted-average OP Units
3,482,977
3,537,654
Weighted-average common shares and OP
Units outstanding - basic and diluted FFO/AFFO
39,458,460
39,619,017
PEAKSTONE REALTY TRUST Net Operating
Income, including Cash and Same Store Cash NOI (Unaudited;
in thousands)
Net operating income ("NOI”) is a non-GAAP financial measure
calculated as net (loss) income, the most directly comparable
financial measure calculated and presented in accordance with GAAP,
excluding equity in the earnings of our unconsolidated real estate
joint ventures, general and administrative expenses, interest
expense, depreciation and amortization, impairment of real estate,
gains or losses on early extinguishment of debt, gains or losses on
sales of real estate, investment income or loss and termination
income. Net operating income on a cash basis (“Cash NOI”) is net
operating income adjusted to exclude the effect of straight-line
rent and amortization of acquired above- and below market lease
intangibles adjustments required by GAAP. Net operating income on a
cash basis for our Same Store portfolio (“Same Store Cash NOI”) is
Cash NOI for properties held for the entirety of all periods
presented. We believe that NOI, Cash NOI and Same-Store Cash NOI
are helpful to investors as additional measures of operating
performance because we believe they help both investors and
management to understand the core operations of our properties
excluding corporate and financing-related costs and non-cash
depreciation and amortization. NOI, Cash NOI and Same Store Cash
NOI are unlevered operating performance metrics of our properties
and allow for a useful comparison of the operating performance of
individual assets or groups of assets. These measures thereby
provide an operating perspective not immediately apparent from GAAP
income from operations or net income (loss). In addition, NOI, Cash
NOI and Same Store Cash NOI are considered by many in the real
estate industry to be useful starting points for determining the
value of a real estate asset or group of assets. Because NOI, Cash
NOI and Same Store Cash NOI exclude depreciation and amortization
and capture neither the changes in the value of our properties that
result from use or market conditions, nor the level of capital
expenditures and capitalized leasing commissions necessary to
maintain the operating performance of our properties, all of which
have real economic effect and could materially impact our results
from operations, the utility of NOI, Cash NOI and Same Store Cash
NOI as measures of our performance is limited. Therefore, NOI, Cash
NOI and Same Store Cash NOI should not be considered as
alternatives to net (loss) income, as computed in accordance with
GAAP. NOI, Cash NOI and Same Store Cash NOI may not be comparable
to similarly titled measures of other companies.
Our calculation of each of NOI, Cash NOI and Same Store Cash NOI
is presented in the following table for three months ended
September 30, 2023 and September 30, 2022 (dollars in
thousands):
Three Months Ended September
30,
2023
2022
Reconciliation of Net Loss to Total
NOI
Net loss
$
(139,948
)
$
(119,373
)
General and administrative expenses
9,653
9,521
Corporate operating expenses to related
parties
257
140
Real estate impairment provision
—
10,697
Depreciation and amortization
25,003
42,628
Interest expense
16,126
24,283
Debt breakage costs
—
13,249
Other (income) expense, net
(3,654
)
162
Loss from investment in unconsolidated
entities
144,598
—
(Gain) loss from disposition of assets
(3,748
)
95,513
Transaction expenses
80
234
Total NOI
$
48,367
$
77,054
Non-Cash Adjustments:
Straight line rents
(822
)
(2,763
)
In-place lease amortization
(421
)
(436
)
Deferred termination income
—
(758
)
Deferred ground/office lease
428
490
Other intangible amortization
377
377
Inducement amortization
—
105
Total Cash NOI
$
47,929
$
74,069
Same Store Cash NOI Adjustments
Recently disposed properties
191
(27,230
)
Same store inducement amortization
adjustment
—
(105
)
Total Same Store Cash NOI
Adjustments
191
(27,335
)
Total Same Store Cash NOI
$
48,120
$
46,734
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231109459544/en/
Investor Relations: ir@pkst.com
Peakstone Realty (NYSE:PKST)
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Peakstone Realty (NYSE:PKST)
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From Jul 2023 to Jul 2024