Peakstone Realty Trust announced its financial results for the first quarter ended March 31, 2025, on May 8, 2025. The company reported a total revenue of approximately $57.0 million, a decrease from $59.2 million in the same quarter last year, primarily due to strategic office dispositions. Net loss attributable to common shareholders was $(49.4) million, or $(1.35) per basic and diluted share, compared to net income of $5.0 million, or $0.14 per share, in Q1 2024.
The net loss was largely driven by a significant $51.96 million real estate impairment provision on six Office segment properties, including three held for sale. Core FFO for the quarter was $24.6 million, or $0.62 per share, down from $25.6 million, or $0.65 per share, in Q1 2024. AFFO was $24.8 million, or $0.62 per share, compared to $27.8 million, or $0.70 per share, in the prior year.
Operationally, the company made progress on its strategic shift, with the industrial segment representing 40.8% of total ABR, increasing to 43% on a pro forma basis after subsequent office sales. Peakstone completed over $144 million of office property dispositions year-to-date 2025, including $34 million in Q1 and an additional $110 million subsequent to quarter-end. Same Store Cash NOI for the total portfolio increased by 4.0% to $39.0 million, driven by a 5.8% increase in Industrial Same Store NOI and a 3.1% increase in Office Same Store NOI.
A key operational highlight was the full leasing of its largest Industrial Outdoor Storage (IOS) redevelopment property in Everett, Washington, on a 9.8-year term with 8% average annual escalations. This lease was secured without anticipated redevelopment capital spend, achieving in-place yields of 5.9% cash and 8.8% GAAP. IOS ABR increased by 10% quarter-over-quarter, demonstrating strong demand and embedded growth potential.
As of March 31, 2025, total debt was $1,360.3 million, with cash and cash equivalents of $204.0 million, resulting in net debt of $1,156.3 million. The net debt to Adjusted EBITDAre ratio was 7.0x, improving to 6.8x on a pro forma basis after subsequent office sales. The company maintained its quarterly dividend, approving $0.225 per common share for the quarter ended June 30, 2025.
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