Peakstone Realty Trust Shares Log Big Gains in Week Ended June 16
June 16, 2023 | James Sprow | Blue Vault
Share prices for US equity real estate investment trusts rose alongside the broader market during the week ended June 16.
The Dow Jones Equity All REIT index finished the week up 1.25%, while the Dow Jones Industrial Average was up 1.25% and the S&P 500 climbed 2.58%.
By property sector, the Dow Jones US Real Estate Industrial index recorded the largest increase, up 2.54%. The apartment and retail indexes followed, each up 0.99%.
The largest declines were logged by the hotel index, sliding 3.96%, and the office index, down 0.74%. Office REIT Peakstone Realty Trust logged the week’s strongest performance, soaring 34.59% week over week. It was followed by PotlatchDeltic Corp., a timber REIT, which rose 8.03%.
Peakstone’s Recent Performance
On March 10, 2023, the Company completed a one-for-nine reverse share split with respect to each class of its common shares, converting every nine shares of the Company’s issued and outstanding common shares of each class into one share of such class.
Peakstone Realty Trust (NYSE Nasdaq PKST) listed its shares on April 14, 2023. Its low for the day on April 14, 2023, was $14.12 and it closed at $18.00 per share. On April 19, 2023, the stock closed at $40.49 and fell again to $18.00 per share by May 8, 2023.
Peakstone’s Board of Trustees approved a distribution for the quarter ended June 30, 2023, in the amount of $0.225 per common share that is payable on July 17, 2023, to holders of the Company’s common shares on June 30, 2023. A monthly dividend of $0.075 was last paid on May 1, 2023. That rate is consistent with the quarterly rate of $0.225.
Peakstone’s History
Peakstone Realty Trust is an internally managed, publicly registered 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. As of March 31, 2023, Peakstone’s portfolio consists of 19 million square feet across 24 states in primarily high growth, strategic coastal and sunbelt markets.
Peakstone Realty Trust was formerly known as Griffin Realty Trust, a nontraded REIT. The name was changed in February 2023, prior to the public listing. The REIT was founded in 2009 as Griffin Capital Essential Asset REIT, Inc. In December 2018 the REIT internalized its management. In March 2021 the REIT completed the acquisition of Cole Office & Industrial REIT for approximately $1.3 billion. In August 2022 the REIT completed the sale of a 41-property office portfolio to a joint venture in which it holds a 49% interest.
As of March 31, 2023, the Company’s real estate portfolio consisted of 78 properties in 24 states consisting substantially of industrial and office properties with a combined acquisition value of approximately $3.3 billion, including the allocation of the purchase price to above and below-market lease valuation.
For further background, see “Unraveling the Mystery of Peakstone Realty Trust” on May 17, 2023, and “Peakstone Webcast Fails to Buoy Stock Price” on April 21, 2023, both on the Blue Vault website.
Sources:
S&P Global Market Intelligence; finance.yahoo.com; SEC
