Investor Presentation
First Quarter 2024
Disclaimers / Forward-Looking Disclosure
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; tenant, geographic concentration, and the financial condition of our tenants; competition for tenants and competition with sellers of similar properties if we elect to dispose of our properties; our access to, and the availability of capital; whether we will be able to refinance or repay debt; 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; our ability to manage cash flows; dilution resulting from equity issuances; 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 ability to maintain our status as a REIT and our Operating Partnership as a partnership for U.S. federal income tax purposes; 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 acquisitions, investments, or 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 discussed in "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" of 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 the Appendix if the reconciliation is not presented on the page in which the measures are published.
Unless otherwise noted, all portfolio data in this Investor Presentation refers to our wholly-owned portfolio as of March 31, 2024. See detailed property lists for Office, Industrial, and Other Segments in the Appendix.
Table of Contents
-
Company Overview
II. A Deeper Dive
PepsiCo - Lakeland, FL
01• Industrial and Office Segments
02• Value Creation Capabilities
RH - Patterson, CA
03• Capitalization Overview
TransDigm - Whippany, NJ
2
PEAKSTONE OVERVIEW
Compelling Investment Opportunity
01 | High-quality,newer-vintage portfolio of predominantly single-tenant industrial and office |
properties located in diverse, strategic growth markets | |
Shaw Industries - Savannah, GA
02 Self-fundedbusiness model through capital recycling and free cash flow
03 Experienced, cycle-testedteam with strong financial alignment and a real estate operator's mindset
LPL (2 Properties) - Fort Mill, SC | Amazon - Pataskala, OH |
3
Differentiated Net Lease Industrial and Office REIT
Portfolio Highlights
16.6mm
Rentable Sq. Ft
96% |
Leased1
13 years | ZF WABCO - North Charleston, SC | AT&T (3 Properties) - Redmond, WA |
Average Building Age2
Keurig Dr. Pepper - Boston, MA | York - Greenwood Village, CO |
73% | |
of ABR from Coastal & | |
Sunbelt Markets | 3M - Dekalb, IL |
Samsonite - Jacksonville, FL |
Notes: Data as of March 31, 2024. See detailed property lists for Office, Industrial and Other Segments in the Appendix. | ||
(1) | Based on Rentable Square Feet. | 4 |
(2) | Weighted average based on ABR. |
Portfolio Overview
Industrial | ||
Segment | ||
Property Count | 19 | |
Rentable Sq. Ft (mm) | 9.0 | |
In-Place ABR (mm) | $49.3 / 27% | |
LQA Adjusted Cash NOI (mm)1 | $47.3 / 26% | |
WALT (years)2 | 6.5 | |
% Leased3 | 100% | |
% Leased to IG Tenants4 | 74% | |
High-quality, well- located industrial properties with modern specifications
Office
Segment
34
5.4
$110.6 / 60%
$108.9 / 61%
7.6
99%
66%
Newer, high-quality
office properties
Industrial &
Office
Segments
53
14.4
$159.9
$156.2
7.3
99%
68%
Portfolio
Total
67
16.6
$185.8
$179.0
6.8
96%
65%
Notes: $ in millions. Data as of March 31, 2024. See detailed property lists for Office, Industrial and Other Segments in the Appendix.
- LQA Adjusted Cash NOI is net of carrying costs for vacant assets. Cash NOI is a non-GAAP financial measure. See slide 28 for reconciliations and definitions.
- Weighted average based on ABR.
- Based on Rentable Square Feet.
- Weighted average based on ABR. Represents ratings of tenants, guarantors or non-guarantor parent entities. There can be no assurance that such guarantors or parent entities will satisfy the tenant's lease obligations. For more information, see definition of
investment grade in the Appendix. | 5 |
High-Quality,Well-Located Industrial and Office Segment Properties
22
30
73%
States
Markets
of ABR from Coastal & Sunbelt Markets
AT&T
(3 Properties)
RH
Occidental
Petroleum Maxar
Technologies
Illinois
- 3M
- Amazon
- Berry Global
Atlas Copco | ||
Roush | PPG | |
Amcor Amazon | ||
Express Scripts | ||
MISO | OceanX |
Massachusetts
- Rapiscan Systems
- Keurig Dr Pepper (2 Properties)
New Jersey
- TransDigm
- Travel & Leisure
- Zoetis
Industrial
Office / Data Center
ABR
<$1mm $1mm-$2mm$2mm-$4mm$4mm-$6mm >$6mm
IGT
Guild
Mortgage
Arizona
- Avnet
- Freeport McMoRan
- McKesson
- onsemi
York
Hopkins
International
Paper
Amentum
Name: 1649679_1621230_1
Tech Data
Huntington Ingalls | ||
(2 Properties) | ||
Pepsi | UEOS / Blue Force | |
530 Great | Bottling | |
Toshiba TEC | ||
CignaCircle Road | LPL | |
(2 Properties)
ZF WABCO
Shaw
Southern Industries
Company
Samsonite
PepsiCo
Spectrum
Maryland
- Fidelity Building Services
- 40 Wight
Notes: Data as of March 31, 2024. | 6 |
Optimizing Portfolio and Balance Sheet
Portfolio Highlights as of 3/31/2024
Industrial and Office Segments
- 99% leased
- 7.3 Year WALT
- Limited near-term rollover
- Only 7.5% of Industrial and Office Segment ABR expires through 2026
Leasing Activity
- Secured three lease extensions with minimal capital costs and weighted average GAAP and cash releasing spreads of:
- 27% GAAP Releasing Spread
- 13% Cash Releasing Spread
Progressing Disposition of Other Segment
Balance Sheet as of 3/31/2024
$436mm | $600mm | |
Cash Balance | Liquidity | |
At Listing (4/13/23)
2023 Year-End
Q1 2024
21 Properties | $40.0mm ABR |
19% of Portfolio ABR | 3.1 WALT |
17 Properties | $37.0mm ABR |
19% of Portfolio ABR | 2.6 WALT |
14 Properties | $25.9mm ABR |
13% of Portfolio ABR | 3.8 WALT |
< $1b | 6.2x |
Net Debt | Leverage Ratio1 |
Notes: Data as of March 31, 2024.
(1) Based on Net Debt + Preferred Shares / Normalized EBITDAre (Consolidated) as of March 31, 2024. Net Debt and EBITDAre are non-GAAP financial measures. See slides 22 and 29 for reconciliations.
7
Primary Long-Term Objective is to Maximize Shareholder Value
01 | Improve per share metrics through internal and external growth | |
02 | Implement multi-channel investment strategy across the risk |
and capital spectrum | |
Object//Logo | 03 | Expansion focused on investing in industrial properties | |
04 | Selectively own key, Class A, single-tenant office with long lease | |
durations | ||
05 | Maximize flexibility by targeting investment grade balance sheet |
8
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Disclaimer
Peakstone Realty Trust published this content on 07 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 May 2024 21:45:58 UTC.