Peakstone Realty Trust(PKST)2024-08-08 20:11Financial Performance - Rental income for Q2 2024 was $55,952,000, a decrease of 10.1% from $62,540,000 in Q2 2023[14] - Net loss attributable to common shareholders for Q2 2024 was $(3,768,000), compared to a net loss of $(416,477,000) in Q2 2023[14] - The company reported a net loss of $4,101 thousand for the three months ended June 30, 2024, compared to a net loss of $452,403 thousand for the same period in 2023[16] - Total comprehensive loss for the three months ended June 30, 2024, was $8,402 thousand, significantly higher than the comprehensive loss of $445,336 thousand in the prior year[16] - The accumulated deficit as of June 30, 2024, stood at $826,597 thousand, reflecting ongoing financial challenges[18] - The company reported a net gain from the sale of operating properties of $(9,120,000) for the six months ended June 30, 2024[21] - For the six months ended June 30, 2024, the company recorded net income of $1.4 million, a turnaround from a net loss of $(443.4) million for the same period in 2023, representing a 100% improvement[155] Assets and Liabilities - Total assets as of June 30, 2024, were $2,730,715,000, down from $2,789,625,000 as of December 31, 2023[12] - Total liabilities decreased to $1,544,124,000 as of June 30, 2024, from $1,585,912,000 at the end of 2023[12] - The company has a total shareholders' equity of $1,097,120,000 as of June 30, 2024, down from $1,112,084,000 at the end of 2023[12] - Cash and cash equivalents increased to $446,800,000 as of June 30, 2024, compared to $391,802,000 at the end of 2023[12] - The company had total interest rate swap assets valued at $22.71 million, down from $26.94 million as of December 31, 2023[70] Cash Flow and Investments - Net cash provided by operating activities increased to $40,728,000 for the six months ended June 30, 2024, from $24,765,000 in the prior year[21] - Net cash provided by investing activities was $67,870,000 for the six months ended June 30, 2024, compared to $289,155,000 in the same period of 2023[21] - Cash distributions to common shareholders amounted to $8,336 thousand for the three months ended June 30, 2024[18] - Cash, cash equivalents, and restricted cash at the end of the period totaled $461,296,000, up from $363,668,000 at the end of June 30, 2023[21] Real Estate and Portfolio - The company reported a total of 66 properties in its portfolio as of June 30, 2024, located across 22 states[26] - The Company’s wholly-owned portfolio had a total of 66 properties, with an overall percentage leased of 96.3% as of June 30, 2024[128] - The total gross investment in real estate was $2,563.7 million, a decrease from $2,610.1 million as of December 31, 2023, representing a decline of approximately 1.8%[41] - The Company recognized an impairment provision of $7,881,000 for real estate and $4,594,000 for goodwill during the six months ended June 30, 2024[21] Debt and Financing - The Company's total consolidated debt as of June 30, 2024, was $1.414 billion, a decrease from $1.442 billion as of December 31, 2023[60] - The Company has a $750.0 million senior unsecured revolving credit facility, of which $400.0 million has been drawn, maturing on January 31, 2026[64] - The effective interest rate for the Company's unsecured debt was 7.11% as of June 30, 2024[61] - The 2025 Term Loan was reduced from $400.0 million to $210.0 million, with a maturity extension to July 25, 2028[182] Shareholder Information - The weighted-average number of common shares outstanding for Q2 2024 was 36,349,950, compared to 35,922,706 in Q2 2023[14] - The company declared a cash dividend of $0.225 per common share and per OP Unit for the three months ended June 30, 2024[190] - Noncontrolling interests represented approximately 8.2% of total shares outstanding as of June 30, 2024, with limited partners owning about 3.2 million OP Units[93] Operational Metrics - Total net operating income (NOI) for the three months ended June 30, 2024, was $45.422 million, a decrease from $49.646 million for the same period in 2023, representing a decline of approximately 4.5%[115] - The Industrial segment reported NOI of $12.854 million for the three months ended June 30, 2024, compared to $12.320 million for the same period in 2023, an increase of approximately 4.3%[115] - The Office segment's total revenues decreased to $32.991 million for the three months ended June 30, 2024, from $34.999 million in the same period of 2023, a decline of approximately 5.7%[115] Market Conditions and Risks - The company continues to face risks related to market volatility, interest rates, and potential economic recession, which may impact future performance[5] - The real estate market is experiencing steady demand, with low vacancy rates and a shift towards modern office spaces that attract tenants[138]