Peakstone Realty Trust reported its second-quarter 2025 financial results on August 7, 2025, highlighting a significant net loss and a substantial dividend reduction. The company posted a GAAP net loss of $(265.3) million for the quarter, a sharp increase from a $(3.8) million loss in Q2 2024. This substantial loss was primarily attributed to a non-cash impairment charge of $286.1 million across 18 office properties.
Adjusted Funds From Operations (AFFO) per share reached $0.61, exceeding analyst estimates of $0.05. GAAP revenue for the quarter was $54.0 million, slightly above the $53.7 million consensus, but a decline from $56.0 million in Q2 2024. The revenue decrease reflects the ongoing strategic divestment of office properties.
In a significant financial decision, the company declared a third-quarter 2025 dividend of $0.10 per share, representing a reduction of more than 50% from the prior quarter's $0.225 per share payout. This adjustment is intended to align payout levels with the evolving cash flow profile as the company transitions to a more industrial-heavy portfolio.
Operationally, the portfolio demonstrated strength, with Same Store Cash Net Operating Income (NOI) climbing 6.3%. Industrial properties delivered a 9.3% increase in Same Store Cash NOI, while office properties saw a 4.7% rise. Industrial Outdoor Storage (IOS) properties maintained near-full occupancy at 99.6% by usable acres, reinforcing the company’s strategic direction.
Peakstone continued its portfolio reshaping, selling $158 million in office assets during the quarter, with an additional $24 million sold subsequent to quarter-end. The company also completed two IOS acquisitions after Q2 2025, totaling $52.4 million in Georgia and Florida, and secured a new lease for an IOS redevelopment in Savannah, Georgia.
The company's net debt to adjusted EBITDAre improved to 6.4x from 6.6x in the prior quarter, supported by proceeds from office sales. As of quarter-end, cash and equivalents stood at $264.4 million, with total liquidity of $355.8 million. Approximately 88% of the company's debt was funded at fixed rates via swaps, with a weighted average debt maturity of three years.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.