8-K
Peakstone Realty Trust (PKST)
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 21, 2023
Peakstone Realty Trust
(Exact name of registrant as specified in its charter)
Commission File Number: 000-55605
| Maryland | 46-4654479 |
|---|---|
| (State or other jurisdiction of incorporation) | (IRS Employer Identification No.) |
1520 E. Grand Avenue, El Segundo, CA 90245
(Address of principal executive offices, including zip code)
(310) 606-3200
(Registrant's telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
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Securities to be registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| None | None | None |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging Growth Company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 1.01. | Entry into a Material Definitive Agreement. |
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On March 21, 2023, Peakstone Realty Trust (the “Company”), through PKST OP, L.P. (“PKST OP”), as borrower, certain subsidiaries of PKST OP party thereto as guarantors, various lending institutions and KeyBank National Association, as administrative agent, entered into the Seventh Amendment (the “Seventh Amendment”) to that certain Second Amended and Restated Credit Agreement dated as of April 30, 2019, as amended by that certain First Amendment to the Second Amended and Restated Credit Agreement dated as of October 1, 2020, the Second Amendment to the Second Amended and Restated Credit Agreement dated as of December 18, 2020, the Third Amendment to the Second Amended and Restated Credit Agreement dated as of July 14, 2021, the Fourth Amendment to the Second Amended and Restated Credit Agreement dated as of April 28, 2022, the Fifth Amendment to the Second Amended and Restated Credit Agreement dated as of September 28, 2022 and the Sixth Amendment to the Second Amended and Restated Credit Agreement dated as of November 30, 2022 (collectively, the “Existing Credit Agreement”).
Prior to the Seventh Amendment, the final Revolving Credit Maturity Date (as defined in the Existing Credit Agreement) was June 30, 2024. The Seventh Amendment amended the Existing Credit Agreement by, among other things: (i) permitting PKST OP to extend the Revolving Commitments (as defined in the Existing Credit Agreement) of each Revolving Lender (as defined in the Existing Credit Agreement) to January 31, 2026 (the “Subsequent Extension”); (ii) amending the covenant regarding Tangible Net Worth (as defined in the Existing Credit Agreement) to reduce the baseline calculation for the required Tangible Net Worth from $2,030,720,237 to $1,000,000,000; and (iii) adding a covenant that prohibits any special distributions from extraordinary non-recurring income.
The exercise of the Subsequent Extension by PKST OP is conditioned upon, among other things, (i) prior to June 30, 2024, the Company consummating a listing of its equity interests which results in such equity interests being traded on the New York Stock Exchange and (ii) the payment of an extension fee on the effective date of the Subsequent Extension in an amount equal to 20 basis points of the amount of Revolving Commitments being extended in connection with the Subsequent Extension.
In connection with the Seventh Amendment, and as a condition to the effectiveness thereof, PKST OP prepaid the outstanding principal balance ($400,000,000) of the 2024 Term Loan (as defined in the Existing Credit Agreement). The prepayment was funded through a draw on the revolving credit facility portion of the Existing Credit Agreement.
In connection with the Existing Credit Agreement, the Company and certain direct and indirect subsidiaries of PKST OP (the “Guarantor Subsidiaries”) were required to guaranty the obligations of PKST OP, as borrower, under the Existing Credit Agreement (the “Existing Guaranty”). In connection with the Seventh Amendment, the Company and the Guarantor Subsidiaries were required to reaffirm and confirm their respective obligations under the Existing Guaranty.
The foregoing summary is qualified in its entirety by reference to the terms of the Seventh Amendment, which is attached hereto as Exhibit 10.1 and incorporated herein by reference.
| Item 2.02. | Results of Operations and Financial Condition. |
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On March 24, 2023, the Company issued a press release and supplemental information discussing the Company’s financial results and operations for the quarter and year ended December 31, 2022. Copies of the press release and supplemental information are furnished as Exhibits 99.1 and 99.2, respectively, to this Current Report on Form 8-K and are each incorporated by reference herein.
Exhibits 99.1 and 99.2 are being furnished pursuant to Item 2.02 and shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. The information under this Item 2.02 in this Current Report on Form 8-K shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act regardless of any general incorporation language in such filing.
| Item 2.03. | Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. |
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The information set forth in Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference into this Item 2.03.
| Item 7.01. | Regulation FD Disclosure. |
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On March 24, 2023, the Company posted to its website (www.pkst.com) an investor presentation and an investor frequently asked questions sheet (“FAQ”), and issued a press release, regarding the anticipated listing of the Company’s common shares on the New York Stock Exchange and the meeting date and record date for the Company’s 2023 annual meeting of shareholders. The investor presentation, FAQ and press release are furnished as Exhibits 99.3, 99.4 and 99.5, respectively, to this Current Report on Form 8-K and are each incorporated by reference herein.
Exhibits 99.3, 99.4 and 99.5 are being furnished pursuant to Item 7.01 and shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section. The information under this Item 7.01 in this Current Report on Form 8-K shall not be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act regardless of any general incorporation language in such filing.
| Item 9.01. | Financial Statements and Exhibits |
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(d) Exhibits
| Exhibit No. | Description |
|---|---|
| 10.1 | Seventh Amendment to Second Amended and Restated Credit Agreement dated November March 21, 2023, by and among Peakstone Realty Trust, PKST OP, L.P., the subsidiary guarantors<br> party thereto, the lending institutions party thereto as lenders and KeyBank National Association, as administrative agent |
| 99.1 | Press Release (Earnings), dated March 24, 2023 |
| 99.2 | Supplemental Information, dated March 24, 2023 |
| 99.3 | Investor Presentation, dated March 24, 2023 |
| 99.4 | Frequently Asked Questions, dated March 24, 2023 |
| 99.5 | Press Release (Listing and Annual Meeting), dated March 24, 2023 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
Cautionary Statement Regarding Forward-Looking Statements
This report forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. 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 report reflect the Company’s current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause the Company’s 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; the impact of the work-from-home trends; recent and ongoing disruption in the debt and banking markets; occupancy, rent deferrals and the financial condition of the Company’s tenants; whether easing of the pandemic, 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; expected sources of financing and the availability and attractiveness of the terms of any such financing; legislative and regulatory changes that could adversely affect our business; our future capital expenditures, operating expenses, net income, operating income, cash flow and developments and trends of the real estate industry; whether a listing of the Company will be completed; whether any such listing will maximize shareholder value; whether we will be successful in the pursuit of our business plan, including any dispositions; whether we will succeed in our investment objectives; any relationship between the trading price of our common shares at listing and our published net asset value; any fluctuation and/or volatility of the trading price of our common shares once listed; risks associated with our dependence on key personnel whose continued service is not guaranteed; risks related to the disruption of management’s attention from ongoing business operations due to pursuit of requirements related to being a listed company; whether we will comply with Sarbanes-Oxley as required of listed companies; and other factors, including those risks disclosed in Part I, Item 1A. “Risk Factors” and Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the Company’s most recent Annual Report on Form 10-K and Part I, Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the Company’s Quarterly Reports on Form 10-Q filed with the U.S. Securities and Exchange Commission. The Company cautions investors not to place undue reliance on these forward-looking statements and urges you to carefully review the disclosures it makes concerning risks. While forward-looking statements reflect the Company’s 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 report. Furthermore, the Company disclaims 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.
Our shareholders are cautioned not to place undue reliance on any forward-looking statement in this report. All forward-looking statements are made as of the date of this report, and the risk that actual results will differ materially from the expectations expressed in this report may increase with the passage of time. In light of the significant uncertainties inherent in the forward-looking statements in this report, the inclusion of such forward-looking statements should not be regarded as a representation by us or any other person that the objectives and plans set forth in this report will be achieved.
Signature(s)
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Peakstone Realty Trust | ||
|---|---|---|
| Date: March 24, 2023 | By: | /s/ Javier F. Bitar |
| Javier F. Bitar | ||
| Chief Financial Officer and Treasurer |
Exhibit 10.1
SEVENTH AMENDMENT TO SECOND AMENDED AND RESTATED
CREDIT AGREEMENT
This Seventh Amendment to Second Amended and Restated Credit Agreement (this “Amendment”)
is made as of March 21, 2023, by and among PKST OP, L.P., a Delaware limited partnership f/k/a GRT OP, L.P., a Delaware limited partnership, having an address at Griffin
Capital Plaza, 1520 E. Grand Avenue, El Segundo, California 90245 \(“Borrower”\), KEYBANK NATIONAL ASSOCIATION \(“KeyBank”\), the other lending institutions which are
parties to this Amendment as “Lenders” \(together with KeyBank, the “Lenders”\) and KEYBANK NATIONAL ASSOCIATION, as Administrative Agent for the Lenders \(the “Agent”\). Unless otherwise defined herein, terms defined in the
Credit Agreement set forth below shall have the same meaning herein.
W I T N E S S E T H:
WHEREAS, the Borrower, the Agent, the Lenders and other financial institutions party thereto have entered into that certain Second Amended and Restated Credit Agreement as of April 30, 2019, as amended by that certain First Amendment to Second Amended and Restated Credit Agreement dated as of October 1, 2020, that certain Second Amendment to Second Amended and Restated Credit Agreement dated as of December 18, 2020, that certain Third Amendment to Second Amended and Restated Credit Agreement dated as of July 14, 2021, that certain Fourth Amendment to Second Amended and Restated Credit Agreement dated as of April 28, 2022, that certain Fifth Amendment to Second Amended and Restated Credit Agreement dated as of September 28, 2022 and that certain Sixth Amendment to Second Amended and Restated Credit Agreement dated as of November 30, 2022 (collectively, the “Existing Credit Agreement”; and the Existing Credit Agreement as amended by this Amendment, the “Credit Agreement”); and
WHEREAS, the Borrower, the Agent and the Lenders (which constitute the Majority Lenders and all Extending Revolving Lenders) have agreed to amend certain terms of the Existing Credit Agreement as set forth herein.
NOW, THEREFORE, in consideration of the mutual promises and agreements herein contained, the parties hereto hereby agree as follows:
| 1. | The Existing Credit Agreement is hereby amended as follows: |
|---|---|
| (a) | Section 1.01 of the Existing Credit Agreement is hereby amended by deleting therefrom the following defined terms: |
| --- | --- |
“2024 Term Commitment”
“2024 Term Lender”
“2024 Term Loan”
“2024 Term Loan Applicable Percentage”
“2024 Term Loan Maturity Date”
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“SpinCo Transaction”
| (b) | Section 1.01 of the Existing Credit Agreement is hereby amended by adding thereto the following defined terms: |
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“Extending Revolving Lenders” means each of the Revolving Lenders having an Extended Revolving Commitment as shown on Schedule 2.01 and their respective successors and assigns.
“Extended Revolving Commitment” means the Revolving Commitment of each Extending Revolving Lender as of the Seventh Amendment Effective Date which is subject to the Fourth Extension pursuant to Section 2.19(a). Notwithstanding anything to the contrary herein, the Extended Revolving Commitment is not a separate Class from the Revolving Commitment but is a subset of the Revolving Commitment.
“First Extension” has the meaning set forth in Section 2.19(a).
“Fourth Extension” has the meaning set forth in Section 2.19(a).
“Non-Extending Revolving Lenders” means all of the Revolving Lenders other than the Extending Revolving Lenders.
“Second Extension” has the meaning set forth in Section 2.19(a).
“Seventh Amendment Effective Date” means March 21, 2023.
“Third Extension” has the meaning set forth in Section 2.19(a).
| (c) | The definition of “Applicable Rate” set forth in Section 1.01 of the Existing Credit Agreement is hereby amending by deleting the table set forth in subsection (a) thereof in its entirety and<br> replacing it with the following: |
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| Level | Consolidated<br><br> <br>Leverage<br><br> <br>Ratio | Applicable<br><br> <br>Rate for<br><br> <br>Revolving<br><br> <br>Loans that<br><br> <br>are SOFR<br><br> Loans | Applicable<br><br> <br>Rate for<br><br> <br>Revolving<br><br> <br>Loans of<br><br> <br>the<br><br> <br>Extending Revolving<br><br> <br>Lenders<br><br> <br>that are<br><br> <br>SOFR<br><br> <br>Loans<br><br> <br>after June<br><br> <br>30, 2024 | Applicable<br><br> <br>Rate for<br><br> <br>Revolving<br><br> <br>Loans that<br><br> <br>are Base<br><br> <br>Rate<br><br> <br>Loans | Applicable<br><br> <br>Rate for<br><br> <br>Revolving<br><br> <br>Loans of<br><br> <br>the<br><br> <br>Extending Revolving<br><br> <br>Lenders<br><br> <br>that are<br><br> <br>Base Rate<br><br> <br>Loans<br><br> <br>after June<br><br> <br>30, 2024 | Applicable<br><br> <br>Rate for<br><br> <br>2025 and<br><br> <br>2026<br><br> <br>Term<br><br> <br>Loans that<br><br> <br>are SOFR<br><br> <br>Loans | Applicable<br><br> <br>Rate for<br><br> <br>2025 and<br><br> <br>2026Term<br><br> <br>Loans that<br><br> <br>are Base<br><br> <br>Rate Loans |
|---|---|---|---|---|---|---|---|
| 1 | Less than 45% | 1.30% | 1.55% | .30% | .55% | 1.25% | .25% |
| 2 | Greater than or equal to 45% but less than 50% | 1.45% | 1.70% | .45% | .70% | 1.40% | .40% |
| 3 | Greater than or equal to 50% but less than 55% | 1.60 % | 1.85% | .60% | .85% | 1.55 % | .55% |
| 4 | Greater than or equal to 55% but less than 60% | 1.90% | 2.15% | .90% | 1.15% | 1.85% | .85% |
| 5 | Greater than or equal to 60% | 2.20% | 2.45% | 1.20% | 1.45% | 2.15% | 1.15% |
| (d) | The definition of “Applicable Rate” set forth in Section 1.01 of the Existing Credit Agreement is hereby amending by deleting the table set forth in subsection (b) thereof in its entirety and<br> replacing it with the following: | ||||||
| --- | --- | ||||||
| Investment<br><br> <br>Grade Rating | Applicable<br><br> <br>Rate for<br><br> <br>Revolving<br><br> <br>Loans that are<br><br> <br>SOFR Loans | Applicable<br><br> <br>Rate for<br><br> <br>Revolving<br><br> <br>Loans of<br><br> <br>Extending Revolving<br><br> <br>Lenders that<br><br> <br>are SOFR<br><br> <br>Loans after<br><br> <br>June 30, 2024 | Revolver<br><br> <br>Facility Fee<br><br> <br>Rate | Applicable<br><br> <br>Rate for Revolving<br><br> <br>Loans that<br><br> <br>are Base<br><br> <br>Rate Loans | Applicable<br><br> <br>Rate for Revolving<br><br> <br>Loans of the<br><br> <br>Extending<br><br> <br>Revolving<br><br> <br>Lenders that<br><br> <br>are Base<br><br> <br>Rate Loans<br><br> <br>after June<br><br> <br>30, 2024 | Applicable<br><br> <br>Rate for<br><br> <br>2025 and<br><br> <br>2026 Term<br><br> <br>Loans that<br><br> <br>are SOFR<br><br> <br>Loans | Applicable<br><br> <br>Rate for<br><br> <br>2025 and<br><br> <br>2026Term<br><br> <br>Loans that<br><br> <br>are Base<br><br> <br>Rate Loans |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Pricing Level 1<br><br> <br>At least A- or A3 | 0.825% | 1.075% | .125% | 0.000% | 0.250% | 0.900% | 0.000% |
| Pricing Level 2<br><br> <br>At least BBB+ or Baa1 | 0.875% | 1.125% | .150% | 0.000% | 0.250% | 0.950% | 0.000% |
| Pricing Level 3<br><br> <br>At least BBB or Baa2 | 1.000% | 1.250% | .200% | 0.000% | 0.250% | 1.100% | 0.100% |
| Pricing Level 4<br><br> <br>At least BBB- or Baa3 | 1.200% | 1.450% | .250% | 0.200% | 0.450% | 1.350% | 0.350% |
| Pricing Level 5<br><br> <br>Below BBB-, Baa3 or unrated | 1.550% | 1.800% | .300% | 0.550% | 0.800% | 1.750% | 0.750% |
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| (e) | The definition of “Borrowing Base Availability” set forth in Section 1.01 of the Existing Credit Agreement is hereby deleted and replaced in its entirety with the following: |
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“Borrowing Base Availability” means, as adjusted from time to time pursuant to the terms hereof, the following: the lesser of (a) a Loan amount such that the Unsecured Leverage Ratio would not exceed sixty percent (60%) (which ratio may increase to sixty-five percent (65%) for a maximum of four (4) consecutive calendar quarters following a Material Acquisition; provided, that without the prior written consent of the Administrative Agent, no more than two (2) such increases to 65% may occur); or (b) a Loan amount which would provide an Unsecured Interest Coverage Ratio of no less than 2.00:1.00. In each case, the foregoing ratios shall be calculated on a pro forma basis to give effect to any acquisitions and dispositions made after the date of the financial statements with respect to the most recently delivered Compliance Certificate pursuant to Section 5.01(c) and any acquisitions to be made with the proceeds of any new borrowing under the Loans.
| (f) | The definition of “Revolving Loan Maturity Date” set forth in Section 1.01 of the Existing Credit Agreement is hereby deleted and replaced in its entirety with the following: |
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““Revolving Loan Maturity Date” means September 30, 2023, as the same may be extended in accordance with Section 2.19 (including, solely with respect to the Extended Revolving Commitment, the Fourth Extension).”
| (g) | Sections 2.01(b) and 2.09(c) of the Existing Credit Agreement and any and all references in the Existing Credit Agreement to the “2024 Term Commitment”, “2024 Term Lender”, “2024 Term Loan”, “2024<br> Term Loan Applicable Percentage”, and “2024 Term Loan Maturity Date” are hereby deleted in their entirety and, with respect to the deletion of Sections 2.01(b) and 2.09(c), replaced with “[Reserved]”. |
|---|---|
| (h) | Section 2.11(g) of the Existing Credit Agreement is hereby deleted in its entirety and replaced with the following: |
| --- | --- |
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“(g) In the event that the Revolving Loan Maturity Date is extended in accordance with the terms of Section 2.19, the Borrower agrees to pay to the Administrative Agent (i) in connection with the First Extension, the Second Extension and the Third Extension, for the account of each Revolving Lender, an extension fee in connection with each such extension equal to 0.05% of the aggregate Revolving Commitments of the Revolving Lenders on the first effective day of each such extension and (ii) in connection with the Fourth Extension, for the account of each Extending Revolving Lender only, an extension fee in connection with such extension equal to 0.20% of the aggregate Extended Revolving Commitments of the Extending Revolving Lenders on the first effective day of such extension.”
| (i) | Section 2.19(a) of the Existing Credit Agreement is hereby deleted in its entirety and replaced with the following: |
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“(a) So long as no Event of Default or Default shall be in existence on the date on which notice is given in accordance with the following clause (i) and on the then-effective Revolving Loan Maturity Date, Borrower may extend the Revolving Loan Maturity Date, first, to December 30, 2023 (the “First Extension”), and following any such First Extension, second, to March 30, 2024 (the “Second Extension”), and following any such Second Extension, third, to June 30, 2024 (the “Third Extension”), and, finally, solely with respect to the Extended Revolving Commitments held by the Extending Revolving Lenders (all other Revolving Commitments to terminate in June 30, 2024 and be due and payable upon such expiration), to January 31, 2026 (the “Fourth Extension”), in each case upon satisfaction of the following: (i) delivery of a written request to Administrative Agent at least thirty (30) days, but no more than sixty (60) days, prior to the Revolving Loan Maturity Date then in effect; (ii) payment to Administrative Agent for the benefit of the Revolving Lenders or the Extending Revolving Lenders, as applicable, of the extension fee set forth in Section 2.11(g), which fee shall be payable on or before the then applicable Revolving Loan Maturity Date; (iii) payment by Borrower of all fees and expenses to Administrative Agent and the Lenders to the extent then due, (iv) with respect to the Fourth Extension, repayment in full of all Obligations owed to the Non-Extending Revolving Lenders, with each Extending Revolving Lender agreeing to such non-pro rata payment, and (v) with respect to the Fourth Extension, the Parent shall have consummated a direct listing of the Parent’s common Equity Interests, resulting in such common Equity Interests being traded on the New York Stock Exchange prior to June 30, 2024. Such extension shall be evidenced by delivery of written confirmation of the same by Administrative Agent to Borrower, but Administrative Agent’s failure to timely deliver the notice shall not affect Borrower’s right to extend so long as the conditions contained herein are satisfied.”
| (j) | Section 5.02(a) of the Existing Credit Agreement is hereby deleted in its entirety and replaced with the following: |
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“(a) a Consolidated Leverage Ratio of not greater than sixty percent (60%) at all times, or for a maximum of four (4) consecutive calendar quarters following a Material Acquisition, sixty five percent (65%); provided, that without the prior written consent of the Administrative Agent, no more than two (2) such increases to 65% may occur;”
| (k) | Section 5.02(b) of the Existing Credit Agreement is hereby deleted in its entirety and replaced with the following: |
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“(b) Tangible Net Worth of not less than the sum of (i) $1,000,000,000.00, plus (ii) (A) seventy-five percent (75%) of the net proceeds (gross proceeds less reasonable and customary costs of sale and issuance paid to Persons not Affiliates of any Credit Party) received by the Parent or the Borrower at any time from the issuance of stock (whether common, preferred or otherwise) of the Parent or the Borrower after the Seventh Amendment Effective Date, plus (B) seventy-five percent (75%) of the amount of operating partnership units of the Borrower issued after the Seventh Amendment Effective Date, minus (iii) seventy-five percent (75%) of the amount of any payments that are used to redeem stock (whether common, preferred or otherwise) of the Parent or the Borrower or to redeem operating partnership units of the Parent after the Seventh Amendment Effective Date, minus (iv) any amounts paid for the redemption or retirement of, or any accrued return on, the preferred equity issued under the 2018 Preferred Documents;”
| (l) | Section 5.02(d) of the Existing Credit Agreement is hereby deleted in its entirety and replaced with the following: |
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“a maximum Secured Debt Ratio of not greater than forty percent (40%) of Total Asset Value or, for a maximum of four (4) consecutive calendar quarters following a Material Acquisition financed principally with Secured Debt, forty five percent (45%); provided, that without the prior written consent of the Administrative Agent, no more than two (2) such increases to 45% may occur;”
| (m) | Section 5.02(h) of the Existing Credit Agreement is hereby deleted in its entirety and replaced with the following: |
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“(h) A maximum Unsecured Leverage Ratio of no greater than sixty percent (60%) or for a maximum of four (4) consecutive calendar quarters following a Material Acquisition, sixty five percent (65%); provided, that without the prior written consent of the Administrative Agent, no more than two (2) such increases to 65% may occur.”
| (n) | Sections 6.05 of the Existing Credit Agreement is hereby deleted in its entirety and replaced with the following: |
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“SECTION 6.05 Restricted Payments. The Parent will not, and will not permit any of its Subsidiaries to, declare or make, or agree to pay or make, directly or indirectly, during any calendar month, any Restricted Payment, except that any of the following Restricted Payments are permitted: (a) Restricted Payments by the Parent required to comply with Section 5.15(e) and to otherwise avoid the payment of any income and/or excise taxes imposed under the Code, however there shall not be any implied requirement that the Parent utilize the dividend deferral options in Section 857(b)(9) or Section 858(a) of the Code, (b) provided no Default or Event of Default is then in existence, Restricted Payments made by the Borrower and/or Parent to its respective equity holders in the form of dividends or distributions, other than special distributions of extraordinary non-recurring income, (c) Restricted Payments declared and paid by Subsidiaries to Borrower, Parent and/or any other Subsidiary (and, in the case of a Subsidiary that is not a wholly owned Subsidiary, distributions to any Person entitled to such distributions made by such Subsidiary ratably in accordance with the interest held by such Person or otherwise as may be required pursuant to the organizational documents of such Subsidiary) with respect to their capital stock or equity interest, (d) Restricted Payments pursuant to any employee or director equity or stock option plan entered into in the ordinary course of business, (e) Restricted Payments of the type described in clause (a) declared and paid by any Subsidiary intended to be treated as a REIT under the Code with respect to such Subsidiary’s REIT status and taxation, and (f) Restricted Payments by the Parent for the redemption or retirement, in full or in part, of the preferred equity issued under the 2018 Preferred Documents”
| (o) | Schedule 2.01 of the Existing Credit Agreement is hereby deleted in its<br> entirety and replaced with Schedule 2.01 attached hereto and made a part hereof. |
|---|---|
| (p) | Exhibit B of the Existing Credit Agreement is hereby deleted in its<br> entirety and replaced with Exhibit B attached hereto and made a part hereof. |
| --- | --- |
| 2. | Representations and Warranties. |
| --- | --- |
(a) The Credit Parties hereby represent, warrant and covenant with Agent and Lenders that, as of the date hereof:
(i) the representations and warranties of the Borrower and each other Credit Party contained in the Credit Agreement or any other Loan Document are true, correct and complete in all material respects on and as of the date hereof, except to the extent such representations and warranties (i) relate solely to an earlier date (in which case such representations and warranties shall have been true, correct and complete in all material respects on and as of such earlier date) or (ii) have been modified to reflect events occurring after the Amendment Effective Date (as defined below), as the same have been disclosed publicly or in writing to the Agent on or before the date hereof or are permitted or not prohibited under the Loan Documents;
7
(ii) this Amendment constitutes the legal, valid and binding obligation of the Borrower and is enforceable against it in accordance with its terms, without defense, counterclaim or offset. Except as hereby specifically amended or modified, the Existing Credit Agreement and the other Loan Documents are hereby confirmed and ratified in all respects and shall be and remain in full force and effect according with their respective terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law;
(iii) the execution of this Amendment shall not operate as a waiver of any right, power or remedy of the Agent or the Lenders, and shall not be deemed to be a novation of the Obligations of the Credit Parties; and
(iv) no event has occurred and is continuing which constitutes a Default or an Event of Default.
3. Conditions to Effectiveness. This Amendment shall not be effective until the date (the “Amendment Effective Date”) on which each of the following conditions precedent has been fulfilled to the reasonable satisfaction of the Agent on or prior to the date of this Amendment:
| (a) | This Amendment shall have been duly executed and delivered by the Credit Parties, the Administrative Agent and the Lenders (which shall constitute Majority Lenders and all Extending Revolving<br> Lenders). |
|---|---|
| (b) | All action on the part of the Credit Parties necessary for the valid execution, delivery and performance by the Credit Parties of this Amendment shall have been duly and effectively taken. |
| --- | --- |
| (c) | After giving effect to this Amendment, no Default or Event of Default shall have occurred and be continuing. |
| --- | --- |
| (d) | Repayment in full of the 2024 Term Loan. |
| --- | --- |
4. Except as expressly amended hereby, the remaining terms and conditions of the Existing Credit Agreement shall continue in full force and effect. All future references to the “Credit Agreement” shall be deemed to be references to the Existing Credit Agreement as amended by this Amendment and each reference to “hereof,” “hereunder,” “herein” or “hereby” and each other similar reference and each reference to “this Agreement” and each other similar reference contained in the Credit Agreement shall from and after the date hereof refer to the Existing Credit Agreement as amended by this Amendment. Each Credit Party hereby ratifies, confirms and reaffirms all of the terms and conditions of the Credit Agreement and each of the other Loan Documents, and further acknowledges and agrees that all of the terms and conditions of the Credit Agreement and the other Loan Documents shall remain in full force and effect, in each case, except as expressly provided in this Agreement.
8
5. This Amendment shall be binding upon and inure to the benefit of the successors and assigns of the parties hereto.
6. This Amendment, which may be executed in multiple counterparts, constitutes the entire agreement of the parties regarding the matters contained herein and shall not be modified by any prior oral or written discussions. Delivery of an executed counterpart of a signature page of this Amendment by telecopy or other electronic imaging transmission (e.g. PDF by email) shall be effective as delivery of a manually executed counterpart of this Amendment. The Credit Parties hereby ratify, confirm and reaffirm all of the terms and conditions of the Existing Credit Agreement, and each of the other Loan Documents, and further acknowledge and agree that all of the terms and conditions of the Existing Credit Agreement shall remain in full force and effect except as expressly provided in this Amendment. This Amendment constitutes a Loan Document for all purposes under the Credit Agreement.
7. Any determination that any provision of this Amendment or any application hereof is invalid, illegal or unenforceable in any respect and in any instance shall not affect the validity, legality or enforceability of such provision in any other instance, or the validity, legality or enforceability of any other provisions of this Amendment.
8. This Amendment shall be governed by and construed in accordance with the laws of the State of New York.
[SIGNATURES ON FOLLOWING PAGE]
9
IN WITNESS WHEREOF, the undersigned has executed and delivered this Amendment under seal as of the date first written above.
| BORROWER: | ||
|---|---|---|
| PKST OP, L.P., a Delaware limited partnership | ||
| By: | PEAKSTONE REALTY TRUST, | |
| a Maryland corporation, its General Partner | ||
| By: | /s/ Javier Bitar | |
| Name: | Javier Bitar | |
| Title: | Chief Financial Officer |
[Signatures continued on next page.]
[Signature Page to Seventh Amendment to Second Amended and Restated Credit Agreement]
| ADMINISTRATIVE AGENT AND LENDER: | |
|---|---|
| KEYBANK, NATIONAL ASSOCIATION, | |
| individually and as Administrative Agent, Swingline Lender and Issuing Bank | |
| By: | Christopher T. Neil |
| Name: | Christopher T. Neil |
| Title: | Senior Banker |
[Signatures continued on next page.]
[Signature Page to Seventh Amendment to Second Amended and Restated Credit Agreement]
| LENDER: | |
|---|---|
| CAPITAL ONE, NATIONAL ASSOCIATION | |
| By: | /s/ Dennis Haydel |
| Name: | Dennis Haydel |
| Title: | Vice President |
[Signatures continued on next page.]
[Signature Page to Seventh Amendment to Second Amended and Restated Credit Agreement]
| LENDER: | |
|---|---|
| TRUIST BANK, f/k/a Branch Banking and Trust Company, successor by merger to SunTrust Bank | |
| By: | /s/ Ryan Almond |
| Name: | Ryan Almond |
| Title: | Director |
[Signatures continued on next page.]
[Signature Page to Seventh Amendment to Second Amended and Restated Credit Agreement]
| LENDER: | |
|---|---|
| WELLS FARGO BANK, NATIONAL ASSOCIATION | |
| By: | /s/ Cristina Johnnie |
| Name: | Cristina Johnnie |
| Title: | Vice President |
[Signatures continued on next page.]
[Signature Page to Seventh Amendment to Second Amended and Restated Credit Agreement]
| LENDER: | |
|---|---|
| BANK OF AMERICA, N.A. | |
| By: | /s/ Dennis Kwan |
| Name: | Dennis Kwan |
| Title: | Vice President |
[Signatures continued on next page.]
[Signature Page to Seventh Amendment to Second Amended and Restated Credit Agreement]
| LENDER: | |
|---|---|
| U.S. BANK NATIONAL ASSOCIATION | |
| By: | /s/ Michael F. Diemer |
| Name: | Michael F. Diemer |
| Title: | Vice President |
[Signatures continued on next page.]
[Signature Page to Seventh Amendment to Second Amended and Restated Credit Agreement]
| LENDER: | |
|---|---|
| FIFTH THIRD BANK, NATIONAL ASSOCIATION | |
| By: | /s/ Michael Glandt |
| Name: | Michael Glandt |
| Title: | Senior Vice President |
[Signatures continued on next page.]
[Signature Page to Seventh Amendment to Second Amended and Restated Credit Agreement]
| LENDER: | |
|---|---|
| ASSOCIATED BANK, NATIONAL ASSOCIATION | |
| By: | /s/ Mitchell Vega |
| Name: | Mitchell Vega |
| Title: | Vice President |
[Signatures continued on next page.]
[Signature Page to Seventh Amendment to Second Amended and Restated Credit Agreement]
| LENDER: | |
|---|---|
| REGIONS BANK | |
| By: | /s/ Walter E. Rivadeneira |
| Name: | Walter E. Rivadeneira |
| Title: | Vice President |
[Signatures continued on next page.]
[Signature Page to Seventh Amendment to Second Amended and Restated Credit Agreement]
| LENDER: | |
|---|---|
| BMO HARRIS BANK N.A. | |
| By: | /s/ Darin Mainquist |
| Name: | Darin Mainquist |
| Title: | Managing Director |
[Signatures continued on next page.]
[Signature Page to Seventh Amendment to Second Amended and Restated Credit Agreement]
| LENDER: | |
|---|---|
| PNC BANK, NATIONAL ASSOCIATION | |
| By: | /s/ David C. Drouillard |
| Name: | David C. Drouillard |
| Title: | Senior Vice President |
[Signatures continued on next page]
[Signature Page to Seventh Amendment to Second Amended and Restated Credit Agreement]
| LENDER: | |
|---|---|
| GOLDMAN SACHS BANK USA | |
| By: | /s/ Jonathan Dworkin |
| Name: | Jonathan Dworkin |
| Title: | Authorized Signatory |
[Signatures continued on next page.]
[Signature Page to Seventh Amendment to Second Amended and Restated Credit Agreement]
| LENDER: | |
|---|---|
| COMERICA BANK | |
| By: | /s/ Charles Waddell |
| Name: | Charles Waddell |
| Title: | Vice President |
[Signatures continued on next page.]
[Signature Page to Seventh Amendment to Second Amended and Restated Credit Agreement]
| LENDER: | |
|---|---|
| SYNOVUS BANK | |
| By: | /s/ Zach Braun |
| Name: | Zach Braun |
| Title: | Director |
[Signatures continued on next page.]
[Signature Page to Seventh Amendment to Second Amended and Restated Credit Agreement]
| LENDER: | |
|---|---|
| FIRST HORIZON BANK (f/k/a First Tennessee Bank national Association) | |
| By: | /s/ Jean M. Brennan |
| Name: | Jean M. Brennan |
| Title: | Senior Vice President |
[Signatures continued on next page.]
[Signature Page to Seventh Amendment to Second Amended and Restated Credit Agreement]
GUARANTOR CONFIRMATION
The undersigned hereby acknowledge and agree to the foregoing Seventh Amendment to Second Amended and Restated Credit Agreement and acknowledge and agree that they remain obligated for the various obligations and liabilities, as applicable, set forth in that certain Guaranty (as supplemented, the "Guaranty") dated April 30, 2019, executed by each of the undersigned in favor of the Agent, which Guaranty remains in full force and effect.
| GUARANTOR: | ||
|---|---|---|
| PEAKSTONE REALTY TRUST | ||
| By: | /s/ Javier F. Bitar | |
| Name: | Javier F. Bitar | |
| Title: | Chief Financial Officer and Treasurer | |
| GRIFFIN (DURHAM) ESSENTIAL ASSET REIT II, L.P., a Delaware limited partnership | ||
| --- | --- | |
| By: | GRIFFIN (DURHAM) ESSENTIAL ASSET REIT<br> II GP, LLC, a Delaware limited liability company | |
| By: | PKST OP, L.P., a Delaware limited partnership | |
| --- | --- | |
| By: | PEAKSTONE REALTY TRUST, | |
| --- | --- | --- |
| its General Partner | ||
| By: | /s/ Javier<br><br> F. Bitar | |
| Name: | Javier F. Bitar | |
| Title: | Chief Financial Officer and Treasurer |
[Signatures Continue on the Following Page]
[Signature Page to Seventh Amendment to Second Amended and Restated Credit Agreement]
GRIFFIN (GROVEPORT) ESSENTIAL ASSET REIT II, LLC
GRIFFIN (ANDOVER) ESSENTIAL ASSET REIT II, LLC
GRIFFIN (PARSIPPANY 14) ESSENTIAL ASSET REIT II, LLC
GRIFFIN (HAMPTON 300) ESSENTIAL ASSET REIT II, LLC
GRIFFIN (HAMPTON 500) ESSENTIAL ASSET REIT II, LLC
GRIFFIN (AUBURN HILLS) ESSENTIAL ASSET REIT II, LLC
GRIFFIN (NORTH CHARLESTON) ESSENTIAL ASSET REIT II, LLC,
GRIFFIN (PARSIPPANY 10) ESSENTIAL ASSET REIT II, LLC
GRIFFIN (LONE TREE) ESSENTIAL ASSET REIT II, LLC
GRIFFIN (CARMEL) ESSENTIAL ASSET REIT II, LLC
THE GC NET LEASE (GV QUEBEC COURT) INVESTORS, LLC
THE GC NET LEASE (ARLINGTON HEIGHTS) INVESTORS, LLC
THE GC NET LEASE (ALLEN PARK) INVESTORS, LLC
THE GC NET LEASE (WESTMINSTER) INVESTORS, LLC
THE GC NET LEASE (PHOENIX BEARDSLEY) INVESTORS, LLC
THE GC NET LEASE (HOUSTON WESTGATE III) INVESTORS, LLC
THE GC NET LEASE (LONE TREE) INVESTORS, LLC
THE GC NET LEASE (FORT MILL) INVESTORS, LLC,
THE GC NET LEASE (FORT MILL II) INVESTORS, LLC,
THE GC NET LEASE (LAKELAND) INVESTORS, LLC,
THE GC NET LEASE (SCOTTSDALE) INVESTORS, LLC,
THE GC NET LEASE (SCOTTSDALE II) INVESTORS, LLC,
THE GC NET LEASE (SAVANNAH) INVESTORS, LLC,
THE GC NET LEASE (HERITAGE III) INVESTORS, LLC,
THE GC NET LEASE (CRANBERRY) INVESTORS, LLC,
THE GC NET LEASE (GREENWOOD VILLAGE) INVESTORS, LLC,
each a Delaware limited liability company
| By: | PKST OP, L.P., a Delaware limited partnership | |||
|---|---|---|---|---|
| By: | PEAKSTONE REALTY TRUST, | |||
| its General Partner | ||||
| By: | /s/ Javier Bitar | |||
| Name: | Javier Bitar | |||
| Title: | Chief Financial Officer |
[Signatures Continue on the Following Page]
[Signature Page to Seventh Amendment to Second Amended and Restated Credit Agreement]
THE GC NET LEASE (COLUMBIA) INVESTORS, LLC,
a Delaware limited liability company
| By: | THE POINT AT CLARK STREET REIT, LLC, a Delaware limited liability company |
|---|---|
| By: | FRANKLIN CENTER MEMBER, LLC, a Delaware limited liability company |
| --- | --- |
| By: | SOR OPERATING PARTNERSHIP, LLC, a Delaware limited liability company |
| --- | --- |
| By: | PKST OP, L.P., a Delaware limited partnership |
| --- | --- |
| By: | PEAKSTONE REALTY TRUST, |
| --- | --- |
its General Partner
| By: | /s/ Javier F. Bitar |
|---|---|
| Name: | Javier F. Bitar |
| Title: | Chief Financial Officer and Treasurer |
[Signatures Continue on the Following Page]
[Signature Page to Seventh Amendment to Second Amended and Restated Credit Agreement]
ARCP OFC BURLINGTON MA, LLC,
ARCP OFC HUNTSVILLE AL, LLC,
ARCP ID BELLEVUE OH, LLC,
ARCP OFC SAN ANTONIO TX, LLC,
ARCP OFC PHOENIX (CENTRAL) AZ, LLC,
ARCP OFC JOHNSTON IA (PHASE II), LLC,
ARCP OFC BURLINGTON MA (PHASE 2), LLC,
VEREIT OFC LINCOLN HILL PA, LLC,
VEREIT OFC PHOENIX AZ, LLC,
VEREIT OFC TYLER TX, LLC,
CIM OFC PLATTEVILLE CO, LLC,
CIM OFC ANDOVER MA, LLC,
CIM OFC SPARKS MD, LLC,
CIM OFC MEMPHIS TN, LLC,
CIM OFC ANDOVER (TECH) MA, LLC,
CIM OFC HUNT VALLEY MD, LLC,
each a Delaware limited liability company
| By: | COLE CORPORATE INCOME OPERATING PARTNERSHIP II, LP, a Delaware limited partnership, its sole member |
|---|---|
| By: | GRT OP (CARDINAL NEW GP SUB), LLC, a Delaware limited liability company, its General Partner |
| --- | --- |
| By: | PKST OP, L.P., a Delaware limited partnership, its sole member |
| --- | --- |
| By: | PEAKSTONE REALTY TRUST, |
| --- | --- |
its General Partner
| By: | /s/ Javier F. Bitar |
|---|---|
| Name: | Javier F. Bitar |
| Title: | Chief Financial Officer, Treasurer and Interim Chief Investment Officer |
[Signatures Continue on the Following Page]
[Signature Page to Seventh Amendment to Second Amended and Restated Credit Agreement]
CIM OFC SAN DIEGO CA, LP,
a Delaware limited partnership
| By: | CIM GP OFC San Diego CA, LLC, a Delaware limited liability company, its General Partner |
|---|---|
| By: | COLE CORPORATE INCOME OPERATING PARTNERSHIP II, LP, a Delaware limited partnership, its sole member |
| --- | --- |
| By: | GRT OP (CARDINAL NEW GP SUB), LLC, a Delaware limited liability company, its General Partner |
| --- | --- |
| By: | PKST OP, L.P., a Delaware limited partnership, its sole member |
| --- | --- |
| By: | PEAKSTONE REALTY TRUST, |
| --- | --- |
its General Partner
| By: | /s/ Javier F.<br> Bitar |
|---|---|
| Name: | Javier F. Bitar |
| Title: | Chief Financial Officer, Treasurer and Interim Chief Investment Officer |
[Signatures Continue on the Following Page]
[Signature Page to Seventh Amendment to Second Amended and Restated Credit Agreement]
THE GC NET LEASE (WAKE FOREST) INVESTORS, L.P., a
Delaware limited partnership
| By: | The GC Net Lease (Wake Forest) GP, LLC, a Delaware limited liability company, its General Partner |
|---|---|
| By: | Cole Corporate Income Operating Partnership II, LP, a Delaware limited partnership, its sole member |
| --- | --- |
| By: | GRT OP (Cardinal New GP Sub), LLC, a Delaware limited liability company, its General Partner |
| --- | --- |
| By: | PKST OP, L.P., a Delaware limited partnership, its sole member |
| --- | --- |
| By: | PEAKSTONE REALTY TRUST, |
| --- | --- |
its General Partner
| By: | /s/ Javier F. Bitar |
|---|---|
| Name: | Javier F. Bitar |
| Title: | Chief Financial Officer, Treasurer and Interim Chief Investment Officer |
[Signature Page to Seventh Amendment to Second Amended and Restated Credit Agreement]
EXHIBIT 99.1
Peakstone Realty Trust Reports
2022 Fourth Quarter and Full Year Results
For the Year Ended December 31, 2022:
– Leased 1.3 Million Square Feet
– Sold Over $1.4 Billion of Office Assets
– Reduced Outstanding Debt by Approximately $1.1 Billion
El Segundo, Calif. (March 24, 2023) - Peakstone Realty Trust ("PKST" or the "Company"), formerly known as Griffin Realty Trust, announced its results for the quarter and full year ended December 31, 2022.
"Throughout 2022 and the start of 2023, we executed important steps to strengthen and de-risk the Company amidst continued macroeconomic pressures and the lingering impact of hybrid work patterns that have challenged office building leasing volume and valuations,” stated Michael J. Escalante, PKST's Chief Executive Officer. “As part of these efforts, we leased over 1.3 million square feet and sold over $1.57 billion of assets ($1.4 billion in 2022 and $170 million to date in 2023). Our asset sales generated proceeds which were primarily used to pay down more than $1.0 billion of debt. In addition, subsequent to year-end, we amended our credit facility to extend the maturity of our revolver through January 2026. Moving ahead with a weighted average lease term in excess of 7.1 years, a strong balance sheet, and no significant near-term debt maturities, we are confident that the Company is well-positioned to execute on its plan to list its common shares on the New York Stock Exchange and enable value creation over the long-term for all shareholders."
Highlights for the Quarter and Year Ended December 31, 2022
| • | Revenue of approximately $75.9 million for the quarter and approximately $416.5 million for the year. |
|---|---|
| • | Net (loss) income attributable to common shareholders of $(228.6) million for the quarter and $(411.9) million for the year. |
| --- | --- |
| • | Adjusted Funds from Operation ("AFFO")^1^ of $0.75 per basic and diluted share for the<br> quarter and $4.81 for the year. |
| --- | --- |
| • | Closed on the sale of 46 office properties in two stages for approximately $1.3 billion (the “Office Portfolio Sale”) and as part of the Office Portfolio Sale, entered into a joint<br> venture (the "Office Joint Venture"), retaining a 49% interest therein for a total capital contribution of $184.2 million. |
| --- | --- |
| • | Closed on the sale of two additional office properties for $126.3 million. |
| --- | --- |
Consolidated Portfolio Overview as of December 31, 2022
| • | 81 properties located in 24 states. |
|---|---|
| • | Weighted average remaining lease term of approximately 7.1 years. |
| --- | --- |
| • | Portfolio is 95.5% leased with an average economic occupancy of 94.8% comprised of Industrial (100%), Office (98.3%), and Other (75.4%). |
| --- | --- |
1
| • | Over 98.5% of annualized base rent^2^ is subject to periodic increases, of which 86.3% is subject to annual escalations that average approximately 2.1%. |
|---|---|
| • | Approximately 61.5% of annualized base rent is generated by investment grade companies.^3^ |
| --- | --- |
Operating Highlights
Leasing Activity
| • | For the quarter, executed one new 15-year lease for approximately 98,000 square feet and one seven-year renewal lease for approximately 226,000 square feet. |
|---|---|
| • | For the year, executed 17 new and renewal leases totaling approximately 1.3 million square feet. |
| --- | --- |
Dispositions/Joint Ventures
| • | For the year: |
|---|---|
| ◦ | Completed the Office Portfolio Sale and entered into the Office Joint Venture. The Company's obligation to the Office Joint Venture is generally limited to its initial capital<br> contribution of $184.2 million. |
| --- | --- |
| ◦ | Sold two additional office properties for $126.3 million. |
| --- | --- |
| • | Subsequent to year-end, sold three properties for approximately $170 million. |
| --- | --- |
Financial Metrics
Revenue
| • | For the quarter, total revenue was approximately $75.9 million, which represents a $43.2 million<br> decrease in rental income compared to the same quarter last year primarily due to the Office Portfolio Sale. |
|---|---|
| • | For the year, total revenue was approximately $416.5 million, which represents a $43.4 million<br> decrease in rental income compared to the prior year primarily due to the Office Portfolio Sale. |
| --- | --- |
Net (Loss) Income
| • | For the quarter, net (loss) attributable to common shareholders was approximately $(228.6)<br> million, or $(6.34) per basic and diluted share, compared to net income attributable to common shareholders of approximately $1.0 million, or $0.03 per basic and diluted share, for the same quarter last year, primarily due<br> to the net loss on the disposition of office assets of $(43.8) million and non-cash impairments of real estate of $(41.3) million and goodwill of $(135.3) million. |
|---|---|
| • | For the year, net (loss) attributable to common shareholders was approximately $(411.9)<br> million, or $(11.41) per basic and diluted share, compared to net income attributable to common shareholders of approximately $1.6 million, or $0.04 per basic and diluted share, for the prior year, primarily due to the<br> net loss on the disposition of assets of $(139.3) million as a result of the Office Portfolio Sale, non-cash impairment of real estate of $($127.6) million, non-cash impairment of goodwill of $(135.3) million, and<br> transaction expenses of $(22.4) million. |
| --- | --- |
2
AFFO
| • | For the quarter, AFFO was approximately $29.6 million, or $0.75 per basic and diluted share, compared to $60.2 million, or $1.52 per basic and diluted share, for the same quarter last year, primarily due to a $43.2 million decrease in rental<br> income primarily due to the Office Portfolio Sale. |
|---|---|
| • | For the year, AFFO was approximately $190.7 million, or $4.81 per basic and diluted share, compared to $219.2 million, or $5.79 per basic and diluted share, for the prior year, primarily attributable to a $43.4 million decrease in rental<br> income due to the Office Portfolio Sale. |
| --- | --- |
Debt Highlights
| • | For the year, reduced debt by approximately $1.1 billion primarily utilizing proceeds from sales. |
|---|---|
| • | For the year, extended the maturity date of the $750.0 million revolving credit facility (the "Revolving Credit Facility") to June 2024 (including three three-month extensions). |
| --- | --- |
| • | Subsequent to year-end, further extended the maturity date of the Revolving Credit Facility to January 2026, subject to, among other things, the Company completing a listing of its<br> common shares on the New York Stock Exchange. |
| --- | --- |
About Peakstone Realty Trust
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 24, 2023, Peakstone’s portfolio consists of 19 million square feet across 24 states in primarily high growth, strategic coastal and sunbelt markets.
Additional information is available at www.pkst.com.
Investor Contact:
ir@pkst.com
Advisors Contact:
advisorservices@pkst.com
Media Contact:
Joele Frank, Wilkinson Brimmer Katcher
Meaghan Repko/Jack Kelleher/Kara Sperry
212-355-4449
3
Cautionary Statement Regarding Forward-Looking Statements
Certain statements contained in this press release of Peakstone Realty Trust, other than historical facts, may be considered forward-looking statements within the meaning of 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”). The Company intends 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 press release reflect the Company's current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause the Company's 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; the impact of the work-from-home trends; recent and ongoing disruption in the debt and banking markets; occupancy, rent deferrals and the financial condition of the Company’s tenants; whether easing of the pandemic, 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; expected sources of financing and the availability and attractiveness of the terms of any such financing; legislative and regulatory changes that could adversely affect our business; our future capital expenditures, operating expenses, net income, operating income, cash flow and developments and trends of the real estate industry; whether a listing of the Company will be completed; whether any such listing will maximize shareholder value; whether we will be successful in the pursuit of our business plan, including any dispositions; whether we will succeed in our investment objectives; any relationship between the trading price of our common shares at listing and our published net asset value; any fluctuation and/or volatility of the trading price of our common shares once listed; risks associated with our dependence on key personnel whose continued service is not guaranteed; risks related to the disruption of management’s attention from ongoing business operations due to pursuit of requirements related to being a listed company; whether we will comply with Sarbanes-Oxley as required of listed companies; and other factors, including those risks disclosed in Part I, Item 1A. “Risk Factors” and Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the Company’s most recent Annual Report on Form 10-K and Part I, Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the Company’s Quarterly Reports on Form 10-Q filed with the U.S. Securities and Exchange Commission.
4
While forward-looking statements reflect the Company's 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 press release. Furthermore, the Company disclaims 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. Moreover, because the Company operates in a very competitive and rapidly changing environment, new risk factors are likely to emerge from time to time. The Company cautions investors not to place undue reliance on these forward-looking statements and urge you to carefully review the disclosures the Company makes concerning risks in Part I, Item 1A. “Risk Factors” and Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s most recent Annual Report on Form 10-K and Part I, Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Part II, Item 1A. “Risk Factors” of the Company's Quarterly Reports on Form 10-Q filed with the U.S. Securities and Exchange Commission.
^1^FFO, as described by the National Association of Real Estate Investment Trusts ("NAREIT"), is adjusted for redeemable preferred distributions. Additionally, the Company uses AFFO as a non-GAAP financial measure to evaluate its operating performance. FFO and AFFO have been revised to include amounts available to both common shareholders and limited partners for all periods presented. See below for a reconciliation of FFO and AFFO to the most directly comparable GAAP financial measure.
^2^Annualized base rent or “ABR” means the contractual base rent before abatements and deducting base year operating expenses for gross and modified gross leases as of December 31, 2022, unless otherwise specified, multiplied by 12 months. For properties in the Company's portfolio that had rent abatements as of December 31, 2022, the Company used the monthly contractual base rent payable following expiration of the abatement.
^3^ Investment grade companies means companies (e.g., a tenant or a guarantor or non-guarantor parent of a tenant) that have received an investment grade credit rating from a Nationally Recognized Statistical Rating Organization (“NRSRO”) approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a company with a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO investment grade rating; management can provide no assurance as to the comparability of these ratings methodologies or that any particular rating for a company is indicative of the rating that a single NRSRO would provide in the event that it rated all companies for which the Company provides credit ratings; to the extent such companies are rated only by non-NRSRO ratings providers, such ratings providers may use methodologies that are different and less rigorous than those applied by NRSROs; moreover, because PKST provides credit ratings for some companies that are non-guarantor parents of Company's tenants, such credit ratings may not be indicative of the creditworthiness of the relevant tenants. Approximately 61.5% of the portfolio's ABR was generated by investment grade companies, with 57.1% generated from companies with a NRSRO credit rating and the remaining 4.4% from companies with a non-NRSRO credit rating that the Company believes is generally equivalent to an NRSRO investment grade rating. Bloomberg’s default risk rating is an example of a non-NRSRO rating.
5
PEAKSTONE REALTY TRUST
CONSOLIDATED BALANCE SHEETS
(Unaudited; in thousands, except units and share amounts)
| December 31, 2021 | |||||
|---|---|---|---|---|---|
| ASSETS | |||||
| Cash and cash equivalents | 233,180 | $ | 168,618 | ||
| Restricted cash | 4,764 | 17,522 | |||
| Real estate: | |||||
| Land | 327,408 | 584,291 | |||
| Building and improvements | 2,631,965 | 4,104,782 | |||
| Tenant origination and absorption cost | 535,889 | 876,324 | |||
| Construction in progress | 1,994 | 4,763 | |||
| Total real estate | 3,497,256 | 5,570,160 | |||
| Less: accumulated depreciation and amortization | (644,639 | ) | (993,323 | ) | |
| Total real estate, net | 2,852,617 | 4,576,837 | |||
| Investments in unconsolidated entities | 178,647 | — | |||
| Intangible assets, net | 33,861 | 43,100 | |||
| Deferred rent receivable | 79,572 | 108,896 | |||
| Deferred leasing costs, net | 26,507 | 44,505 | |||
| Goodwill | 94,678 | 229,948 | |||
| Due from affiliates | — | 271 | |||
| Right of use asset | 35,453 | 39,482 | |||
| Interest rate swap asset | 41,404 | 3,456 | |||
| Other assets | 31,877 | 40,382 | |||
| Real estate assets and other assets held for sale, net | 20,816 | $ | — | ||
| Total assets | 3,633,376 | $ | 5,273,017 | ||
| LIABILITIES AND EQUITY | |||||
| Debt, net | 1,485,402 | $ | 2,532,377 | ||
| Restricted reserves | 627 | 8,644 | |||
| Interest rate swap liability | — | 25,108 | |||
| Distributions payable | 12,402 | 12,396 | |||
| Due to affiliates | 1,458 | 2,418 | |||
| Intangible liabilities, net | 20,658 | 30,626 | |||
| Lease liability | 46,519 | 50,896 | |||
| Accrued expenses and other liabilities | 80,175 | 109,121 | |||
| Total liabilities | 1,647,241 | 2,771,586 | |||
| Perpetual convertible preferred shares | 125,000 | 125,000 | |||
| Noncontrolling interests subject to redemption; 556,099 and 556,099 units as of December 31, 2022<br> and December 31, 2021, respectively | 3,812 | 4,768 | |||
| Shareholders' equity: | |||||
| Common stock, 0.001 par value; 800,000,000 shares authorized; 35,999,898 and 36,070,902 shares outstanding in the aggregate as of December 31, 2022 and December 31, 2021, respectively | 36 | 36 | |||
| Additional paid-in capital | 2,948,600 | 2,952,261 | |||
| Cumulative distributions | (1,036,678 | ) | (922,562 | ) | |
| Accumulated (loss) income | (269,926 | ) | 141,983 | ||
| Accumulated other comprehensive income (loss) | 40,636 | (18,708 | ) | ||
| Total shareholders' equity | 1,682,668 | 2,153,010 | |||
| Noncontrolling interests | 174,655 | 218,653 | |||
| Total equity | 1,857,323 | 2,371,663 | |||
| Total liabilities and equity | 3,633,376 | $ | 5,273,017 |
All values are in US Dollars.
6
PEAKSTONE REALTY TRUST
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; in thousands, except share and per share amounts)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||||||||
| Revenue: | ||||||||||||
| Rental income | $ | 75,893 | $ | 119,125 | $ | 416,485 | $ | 459,872 | ||||
| Expenses: | ||||||||||||
| Property operating expense | 9,357 | 16,687 | 52,451 | 61,259 | ||||||||
| Property tax expense | 6,065 | 10,708 | 37,317 | 41,248 | ||||||||
| Property management fees to non-affiliates | 589 | 1,051 | 3,496 | 4,066 | ||||||||
| General and administrative expenses | 11,706 | 10,350 | 39,893 | 40,479 | ||||||||
| Corporate operating expenses to affiliates | 284 | 630 | 1,349 | 2,520 | ||||||||
| Real estate impairment provision | 41,323 | — | 127,577 | 4,242 | ||||||||
| Depreciation and amortization | 35,275 | 54,922 | 190,745 | 209,638 | ||||||||
| Total expenses | 104,599 | 94,348 | 452,828 | 363,452 | ||||||||
| Income before other income and (expenses) | (28,706 | ) | 24,777 | (36,343 | ) | 96,420 | ||||||
| Other income (expenses): | ||||||||||||
| Interest expense | (16,501 | ) | (21,425 | ) | (84,816 | ) | (85,087 | ) | ||||
| Extinguishment of debt | — | — | (13,249 | ) | — | |||||||
| Other income, net | (181 | ) | 1,289 | (45 | ) | 1,521 | ||||||
| Net loss from investment in unconsolidated entities | (9,993 | ) | — | (9,993 | ) | 8 | ||||||
| (Loss) gain from disposition of assets | (43,767 | ) | — | (139,280 | ) | (326 | ) | |||||
| Impairment provision, goodwill | (135,270 | ) | — | (135,270 | ) | — | ||||||
| Transaction expenses | (13,724 | ) | (966 | ) | (22,386 | ) | (966 | ) | ||||
| Net (loss) income | (248,142 | ) | 3,675 | (441,382 | ) | 11,570 | ||||||
| Distributions to redeemable preferred shareholders | (2,516 | ) | (2,516 | ) | (10,063 | ) | (9,698 | ) | ||||
| Net (income) loss attributable to noncontrolling interests | 22,071 | (102 | ) | 39,714 | (66 | ) | ||||||
| Net income (loss) attributable to controlling interest | (228,587 | ) | 1,057 | (411,731 | ) | 1,806 | ||||||
| Distributions to redeemable noncontrolling interests attributable to common shareholders | (45 | ) | (45 | ) | (178 | ) | (177 | ) | ||||
| Net (loss) income attributable to common shareholders | $ | (228,632 | ) | $ | 1,012 | $ | (411,909 | ) | $ | 1,629 | ||
| Net (loss) income attributable to common shareholders per share, basic and diluted | $ | (6.34 | ) | $ | 0.03 | $ | (11.41 | ) | $ | 0.04 | ||
| Weighted average number of common shares outstanding, basic and diluted | 35,999,203 | 36,022,888 | 36,057,825 | 34,361,208 | ||||||||
| Cash distributions declared per common share | 0.80 | 0.80 | 3.16 | 3.16 |
7
PEAKSTONE REALTY TRUST
Funds from Operations and Adjusted Funds from Operations
(Unaudited; in thousands except share and per share amounts)
Funds from Operations and Adjusted Funds from Operations
Our reported results are presented in accordance with GAAP. We also disclose FFO and AFFO both of which are non-GAAP financial measures. We believe these two non-GAAP financial measures are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of REITs.
We compute FFO in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”). FFO is defined as net income or loss computed in accordance with GAAP, excluding extraordinary items, as defined by GAAP, and gains and losses from sales of depreciable real estate assets, adding back impairment write-downs of depreciable real estate assets, plus real estate related depreciation and amortization (excluding amortization of deferred financing costs and depreciation of non-real estate assets), and after adjustment for unconsolidated partnerships, joint ventures and preferred distributions. Because FFO calculations exclude such items as depreciation and amortization of depreciable real estate assets and gains and losses from sales of depreciable real estate assets (which can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates), they facilitate comparisons of operating performance between periods and between other REITs. As a result, the Company believes that the use of FFO, together with the required GAAP presentations, provides a more complete understanding of the Company's performance relative to its competitors and a more informed and appropriate basis on which to make decisions involving operating, financing, and investing activities. It should be noted, however, that other REITs may not define FFO in accordance with the current NAREIT definition or may interpret the current NAREIT definition differently than the Company does, making comparisons less meaningful.
Additionally, the Company uses AFFO as a non-GAAP financial measure to evaluate the Company's operating performance. AFFO excludes non-routine and certain non-cash items such as revenues in excess of cash received, amortization of share-based compensation net, deferred rent, amortization of in-place lease valuation, acquisition-related costs, financed termination fee, net of payments received, gain or loss from the extinguishment of debt, unrealized gains (losses) on derivative instruments, write-off transaction costs and other one-time transactions. FFO and AFFO have been revised to include amounts available to both common shareholders and limited partners for all periods presented.
AFFO is a measure used among the Company's peer group. The Company also believes that AFFO is a recognized measure of sustainable operating performance by the REIT industry. Further, the Company believes AFFO is useful in comparing the sustainability of its operating performance with the sustainability of the operating performance of other real estate companies.
Management believes that AFFO is a beneficial indicator of its ongoing portfolio performance and ability to sustain its current distribution level. More specifically, AFFO isolates the financial results of the Company's operations. AFFO, however, is not considered an appropriate measure of historical earnings as it excludes certain significant costs that are otherwise included in reported earnings. Further, since the measure is based on historical financial information, AFFO for the period presented may not be indicative of future results or the Company's future ability to make or sustain distributions. By providing FFO and AFFO, the Company presents information that assists investors in aligning their analysis with management’s analysis of long-term operating activities.
8
For all of these reasons, the Company believes the non-GAAP measures of FFO and AFFO, in addition to net income (loss) are helpful supplemental performance measures and useful to investors in evaluating the performance of the Company's real estate portfolio. However, a material limitation associated with FFO and AFFO is that they are not indicative of the Company's cash available to fund distributions since other uses of cash, such as capital expenditures at the Company's properties and principal payments of debt, are not deducted when calculating FFO and AFFO. The use of AFFO as a measure of long-term operating performance on value is also limited if the Company does not continue to operate under its current business plan as noted above. FFO and AFFO should not be viewed as a more prominent measure of performance than net income (loss) and each should be reviewed in connection with GAAP measurements.
Neither the SEC, NAREIT, nor any other applicable regulatory body has opined on the acceptability of the adjustments contemplated to adjust FFO in order to calculate AFFO and its use as a non-GAAP performance measure. In the future, NAREIT may decide to standardize the allowable exclusions across the REIT industry, and the Company may have to adjust the calculation and characterization of this non-GAAP measure.
9
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||||||||
| Net income | $ | (248,142 | ) | $ | 3,675 | $ | (441,382 | ) | $ | 11,570 | ||
| Adjustments: | ||||||||||||
| Depreciation of building and improvements | 22,336 | 33,035 | 113,191 | 125,388 | ||||||||
| Amortization of leasing costs and intangibles | 13,037 | 21,977 | 77,926 | 84,598 | ||||||||
| Impairment provision, real estate | 41,323 | — | 127,577 | 4,242 | ||||||||
| Loss from disposition of assets, net | 43,767 | — | 139,280 | 326 | ||||||||
| Company's share of amortization of intangible assets- unconsolidated entity | 4,643 | — | 4,643 | — | ||||||||
| Company's share of loss on sale of unconsolidated entity | 3,558 | — | 3,558 | (8 | ) | |||||||
| FFO | (119,478 | ) | 58,687 | 24,793 | 226,116 | |||||||
| Distribution to redeemable preferred shareholders | (2,515 | ) | (2,516 | ) | (10,063 | ) | (9,698 | ) | ||||
| FFO attributable to common shareholders and limited partners | $ | (121,993 | ) | $ | 56,171 | $ | 14,730 | $ | 216,418 | |||
| Reconciliation of FFO to AFFO: | ||||||||||||
| FFO attributable to common shareholders and limited partners | $ | (121,993 | ) | $ | 56,171 | $ | 14,730 | $ | 216,418 | |||
| Adjustments: | ||||||||||||
| Revenues in excess of cash received, net | (5,199 | ) | 639 | (15,407 | ) | (10,780 | ) | |||||
| Amortization of share-based compensation | 3,433 | 1,752 | 9,573 | 7,470 | ||||||||
| Deferred rent - ground lease | 433 | 516 | 1,951 | 2,064 | ||||||||
| Unrealized loss (gain) on investments | 15 | (5 | ) | 195 | (15 | ) | ||||||
| Loss on debt breakage costs — write-off of deferred financing costs | — | — | 1,771 | — | ||||||||
| Amortization of deferred financing costs | 993 | 809 | 3,544 | 3,184 | ||||||||
| Company's share of amortization of deferred financing costs- unconsolidated entity | 3,740 | — | 3,740 | — | ||||||||
| Company's share of revenues in excess of cash received (straight-line rents) - unconsolidated entity | (257 | ) | — | (257 | ) | — | ||||||
| Company's share of amortization of above market rent - unconsolidated entity | (58 | ) | — | (58 | ) | — | ||||||
| Amortization of lease inducements | 79 | 69 | 537 | 278 | ||||||||
| Amortization of above/(below) market rent, net | (923 | ) | (691 | ) | (2,205 | ) | (1,323 | ) | ||||
| Amortization of debt premium/(discount), net | 103 | 103 | 409 | 409 | ||||||||
| Amortization of ground leasehold interests | (98 | ) | (91 | ) | (372 | ) | (350 | ) | ||||
| Amortization of below tax benefit amortization | 377 | 377 | 1,494 | 1,252 | ||||||||
| Employee separation expense | — | 777 | 72 | 777 | ||||||||
| Write-off of transaction costs | — | 3 | 28 | 65 | ||||||||
| Write-off of reserve liability | — | (1,166 | ) | (1,166 | ) | |||||||
| Goodwill impairment provision | 135,270 | — | 135,270 | — | ||||||||
| Transaction expenses | 13,724 | 966 | 22,386 | 966 | ||||||||
| Debt breakage costs | — | — | 13,249 | — | ||||||||
| AFFO available to common shareholders and limited partners | $ | 29,639 | $ | 60,229 | $ | 190,650 | $ | 219,249 | ||||
| FFO per share, basic and diluted | $ | (3.09 | ) | $ | 1.42 | $ | 0.37 | $ | 5.71 | |||
| AFFO per share, basic and diluted | $ | 0.75 | $ | 1.52 | $ | 4.81 | $ | 5.79 | ||||
| Weighted-average common shares outstanding - basic EPS | 35,999,203 | 36,022,888 | 36,057,825 | 34,361,208 | ||||||||
| Weighted-average OP Units | 3,537,654 | 3,537,654 | 3,537,654 | 3,537,654 | ||||||||
| Weighted-average common shares and OP Units outstanding - basic and diluted FFO/AFFO | 39,536,857 | 39,560,542 | 39,595,479 | 37,898,862 |
10
Exhibit 99.2
Supplemental Information Fourth Quarter 2022
Table of Contents Page Company Highlights 4 Financial Information 9 Debt & Capitalization 21 Leasing Activity & Asset Management 26 NAV Component Summary 29 Property Information 31 Portfolio Characteristics 36 Notes & Definitions 56 2
Company Highlights
High-Quality Portfolio of Office & Industrial Properties Net-Leased to a Diversified Pool of Creditworthy Tenants6 $4.5B Enterprise Value 81 Properties 19.9M Square Feet 24 States 23%/59%/18% Industrial/Office/ Other1 95.5% Leased 7.1 Years WALT2 61.5% Investment Grade3 BBB- Avg. Credit Rating4 2.0% Avg. Annual Rent Escalations5 1 Based on annualized base rents. | 2 Leased percentage and WALT (Weighted Average Lease Term) calculations are based on annualized base rents. | 3 Ratings are of those tenants, guarantors and/or non-guarantor parents of tenants that have received ratings from a Nationally Recognized Statistical Rating Organization (“NRSRO”) approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., a Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. | 4 Average credit rating of tenants, guarantors or non-guarantor parents that are rated by a third party. | 5 Weighted average rental increase is based on the remaining term of each lease, excluding leases that expire within one year. | 6 Peakstone Realty Trust has no affiliation, connection or association with and is not sponsored or approved by the tenants of its properties. Peakstone Realty Trust has not approved or sponsored its tenants or their products and services. All product and company names, logos and slogans are the trademarks or service marks of their respective owners. Office Industrial Company Snapshot As of December 31, 2022 4
(Unaudited, USD in thousands) Number of Properties Economic Occupancy Total Rentable Square Feet WALT (years) Annualized Base Rents Investment Grade Credit (% of Annualized Base Rents)4 Industrial1 21 100.0 % 9,650,000 6.7 $ 52,553 53.8 % Office2 39 98.3 6,452,400 8.5 131,387 69.1 TOTAL / WEIGHTED AVERAGE INDUSTRIAL AND OFFICE 60 99.3 % 16,102,400 8.0 183,940 64.7 % Other3 21 75.4 3,787,300 3.1 40,002 46.7 TOTAL / WEIGHTED AVERAGE PORTFOLIO5 81 94.8 % 19,889,700 7.1 $ 223,942 61.5 % 4 1 The Industrial segment consists of high-quality, well-located industrial properties with modern specifications. 2 The Office segment consists of newer, high-quality, and business-essential office properties. 3 The Other segment consists of vacant and non-core properties, together with other properties in the same cross-collateralized loan pools. This segment includes properties that are either non-stabilized, leased to tenants with shorter lease terms or are being evaluated for repositioning, re-leasing or potential sale. 4 Ratings are of those tenants, guarantors and/or non-guarantor parents of tenants that have received ratings from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., a Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. 5 Includes approximately 9K of square feet occupied by building amenities that do not generate net rents (e.g., health clubs and management offices). Wholly Owned Portfolio As of December 31, 2022
Leverage3 4 Leasing Activity 39.2% Net Debt (Pro Rata Share) to Enterprise Value $0.75 AFFO Per Share1, 3 ~100% Rent Collections $75.9 million Total Revenues3 Liquidity2, 3 The Company signed one new lease totaling 98,000 square feet and one early seven year lease renewal for 226,000 square feet. 94.8% Average Economic Occupancy Transaction Activity3 On December 22, 2022, the Company sold one property located in Birmingham, Alabama for total proceeds of approximately $33.3 million, less transaction costs and other credits, and recorded a loss of approximately $0.8 million. On December 27, 2022, the Company sold a majority interest in five properties for a total proceeds of approximately $170.4 million, less transaction costs and other credits, and recorded a loss of approximately $43.0 million. In connection with the sale, the Company purchased additional interest in the unconsolidated joint venture. 1 Per share data represents basic and diluted, including the impact of the Company's one-for-nine reverse stock split. 2 See section "Debt & Capitalization" for liquidity calculation. 3 Unaudited. 4th Quarter 2022 Highlights Net (Loss) Income Per Share1, 3 $(6.34) Leased $436.0 million 95.5%
Subsequent Events Highlights Subsequent to Year-Ended December 31, 2022 (Unaudited) 4 On January 6, 2023, the Company sold one property located in Irvine, California for a total proceeds of approximately $40.0 million, less closing costs and other credits, and recorded a gain of approximately $18.7 million. On February 16, 2023, the Company sold one property located in Clinton, South Carolina for approximately $19.3 million, less closing costs and other credits, and recorded a gain of approximately $7.1 million. On March 2, 2023, the Company sold one property located in Herndon, Virginia for approximately $110.3 million, less closing costs and other credits, and recorded a gain of approximately $4.8 million. On March 6, 2023, the Company repaid the outstanding balance of $19.1 million related to the HealthSpring mortgage loan that was maturing in April 2023. On March 21, 2023, the Company extended the maturity date, including extension options, of its revolving credit facility to January 2026, subject to, among other things, the Company completing a listing of its common shares on the New York Stock Exchange. In connection with the extension, the Company prepaid the outstanding principal balance ($400,000,000) of its 2024 Term Loan.
Financial Information
1 Includes shares of common stock and limited partnership units. 2 Includes approximately 9K of square feet occupied by building amenities (e.g., health clubs and management offices). 3 Includes impact of the Company's one-for-nine reverse stock split. 10 Selected Financial Data (Unaudited, USD in thousands, except per share metrics) 12/31/2022 9/30/2022 For the Quarter Ended 6/30/2022 3/31/2022 12/31/2021 SELECTED FINANCIAL DATA Net income per share $ (6.34) $ (3.08) $ (2.00) $ — $ 0.03 FFO per share - basic and diluted1 $ (3.09) $ 0.68 $ 1.43 $ 1.34 $ 1.42 AFFO per share - basic and diluted1 $ 0.75 $ 1.08 $ 1.57 $ 1.41 $ 1.52 Interest expense $ 16,501 $ 24,283 $ 22,366 $ 21,666 $ 21,425 Operating margin 78.9 % 76.0 % 78.2 % 77.5 % 76.1 % Normalized EBITDAre $ 57,924 $ 64,350 $ 86,861 $ 80,230 $ 80,602 Adjusted EBITDA $ 42,553 $ 67,968 $ 84,151 $ 77,046 $ 81,706 WHOLLY OWNED PORTFOLIO STATISTICS Rentable Square Feet 2 19,889,700 21,058,200 29,159,400 29,157,000 29,157,000 Economic Occupancy 94.8 % 95.1 % 92.7 % 93.4 % 93.8 % Leased (based on portfolio square feet) 95.5 % 95.6 % 93.0 % 93.9 % 94.5 % CAPITALIZATION Outstanding Common Shares3 35,999,898 36,007,433 36,082,283 36,079,527 36,070,902 Weighted average number of common shares outstanding - basic and diluted3 35,999,203 36,081,363 36,079,905 36,071,465 36,022,888 Outstanding OP Units3 3,537,654 3,537,654 3,537,654 3,537,654 3,537,654 Series A Preferred Shares 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 Total Consolidated Debt $ 1,489,803 $ 1,491,689 $ 2,536,910 $ 2,539,316 $ 2,541,515 Total Cash, Cash Equivalents and Restricted Cash $ 237,944 $ 87,883 $ 222,293 $ 203,303 $ 186,140
Selected Financial Data (continued) (Unaudited, USD in thousands, except per share metrics) 12/31/20221 9/30/20222 For the Quarter Ended 6/30/20222 3/31/20222 12/31/20211 REVENUES BY SEGMENT Industrial $ 15,945 $ 15,095 $ 14,807 $ 15,500 $ 14,997 Office 45,643 72,128 93,494 85,846 88,307 Industrial and Office Total 61,588 87,223 108,301 101,346 103,304 Other 14,305 14,107 14,772 14,843 15,821 Total Revenues $ 75,893 $ 101,330 $ 123,073 $ 116,189 $ 119,125 NOI BY SEGMENT Industrial $ 13,564 $ 13,389 $ 13,111 $ 13,413 $ 13,173 Office 37,320 54,374 72,793 66,493 66,983 Industrial and Office Total 50,884 67,763 85,904 79,906 80,156 Other 8,998 9,291 10,307 10,168 10,523 Total NOI $ 59,882 $ 77,054 $ 96,211 $ 90,074 $ 90,679 CASH NOI BY SEGMENT Industrial $ 13,300 $ 12,846 $ 12,798 $ 13,112 $ 12,946 Office 32,723 52,782 70,903 64,537 65,604 Industrial and Office Total 46,023 65,628 83,701 77,649 78,550 Other 8,626 8,336 9,678 9,490 13,038 Total Cash NOI $ 54,649 $ 73,964 $ 93,379 $ 87,139 $ 91,588 10 1See "Non-GAAP Financial Measures " on page 13 for reconciliations of NOI to Cash NOI for the periods 12/31/2022 and 12/31/2021. 2See "Notes and Definitions" on page 60 for reconciliations of NOI to Cash NOI for the interim periods 9/30/2022, 6/30/2022, and 12/31/2021.
Operating income (28,706) 13,817 (48,634) 27,178 24,777 OTHER INCOME (EXPENSES) Interest expense (16,501) (24,283) (22,366) (21,666) (21,425) Other income (loss), net (181) 89 (54) 101 1,289 Extinguishment of debt — (13,249) — — Net loss from investment in unconsolidated entities (9,993) — — — — Loss from disposition of assets, net (43,767) (95,513) — — — Goodwill impairment provision (135,270) — — — — Transaction expenses (13,724) (234) (5,545) (2,883) (966) NET (LOSS) INCOME (248,142) (119,373) (76,599) 2,730 3,675 Distributions to redeemable preferred shareholders (2,516) (2,516) (2,516) (2,516) (2,516) Net loss (income) attributable to noncontrolling interests 22,071 10,710 6,952 (19) (102) Net (loss) income attributable to controlling interests (228,587) (111,179) (72,163) 195 1,057 Distributions to redeemable noncontrolling interests attributable to common stockholders (45) (45) (44) (44) (45) NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS $ (228,632) $ (111,224) $ (72,207) $ 151 $ 1,012 NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS PER BASIC & DILUTED SHARE $ (6.34) $ (3.08) $ (2.00) $ — $ 0.03 WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING, BASIC & DILUTED 35,999,203 36,081,363 36,079,905 36,071,465 36,022,888 Consolidated Statement of Operations (Unaudited, USD in thousands, except per share metrics) 12/31/2022 9/30/2022 For the Quarter Ended 6/30/2022 3/31/2022 12/31/2021 REVENUES Rental income $ 75,893 $ 101,330 $ 123,073 $ 116,189 $ 119,125 OPERATING EXPENSES Property operating expense 9,357 13,716 14,335 15,043 16,687 Property tax expense 6,065 9,737 11,482 10,033 10,708 Property management fees to non-affiliates 589 823 1,045 1,039 1,051 General and administrative expenses 11,706 9,772 8,892 9,523 10,350 Corporate operating expenses to affiliates 284 140 416 510 630 Depreciation and amortization 35,275 42,628 59,980 52,863 54,922 Real estate impairment provision 41,323 10,697 75,557 — — Total operating expenses 104,599 87,513 171,707 89,011 94,348 10
Consolidated Balance Sheet (Unaudited, USD in thousands) 12/31/2022 9/30/2022 As of 6/30/2022 3/31/2022 12/31/2021 ASSETS Cash and cash equivalents $ 233,180 $ 75,838 $ 202,655 $ 184,209 $ 168,618 Restricted cash 4,764 12,045 19,638 19,094 17,522 Real estate Land 327,408 380,998 573,306 584,291 584,291 Building and improvements 2,631,965 2,865,548 4,029,828 4,107,554 4,104,782 Tenant origination and absorption cost 535,889 598,662 853,542 876,324 876,324 Construction in progress 1,994 2,795 4,581 3,081 4,763 TOTAL REAL ESTATE 3,497,256 3,848,003 5,461,257 5,571,250 5,570,160 Less accumulated depreciation and amortization (644,639) (682,814) (1,066,176) (1,044,790) (993,323) Total Real estate, net 2,852,617 3,165,189 4,395,081 4,526,460 4,576,837 Investments in unconsolidated entities 178,647 194,485 — — — Intangible assets, net 33,861 35,281 40,179 41,784 43,100 Deferred rent 79,572 81,156 111,507 112,195 108,896 Deferred leasing costs, net 26,507 26,268 48,835 43,422 44,505 Goodwill 94,678 229,948 229,948 229,948 229,948 Due from affiliates — 226 226 276 271 Right of use asset 35,453 35,894 39,997 40,362 39,482 Interest rate swap asset 41,404 42,724 21,905 17,133 3,456 Other assets 31,877 35,347 39,045 35,435 40,382 Real estate assets and other assets held for sale, net 20,816 — — — — TOTAL ASSETS $ 3,633,376 $ 3,934,401 $ 5,149,016 $ 5,250,318 $ 5,273,017 10
Consolidated Balance Sheet (continued) (Unaudited, USD in thousands) 12/31/2022 9/30/2022 As of 6/30/2022 3/31/2022 12/31/2021 LIABILITIES AND EQUITY Debt, net $ 1,485,402 $ 1,486,783 $ 2,529,228 $ 2,531,067 $ 2,532,377 Restricted reserves 627 7,150 8,417 8,465 8,644 Interest rate swap liability — — — 4,926 25,108 Distributions payable 12,402 12,111 12,078 12,393 12,396 Due to affiliates 1,458 1,636 1,690 2,532 2,418 Intangible liabilities, net 20,658 22,989 27,420 29,175 30,626 Lease liability 46,519 46,598 52,244 52,088 50,896 Accrued expenses and other liabilities 80,175 85,096 110,815 103,669 109,121 TOTAL LIABILITIES 1,647,241 1,662,363 2,741,892 2,744,315 2,771,586 Perpetual convertible preferred shares 125,000 125,000 125,000 125,000 125,000 Noncontrolling interests subject to redemption 3,812 3,812 4,671 4,671 4,768 STOCKHOLDERS’ EQUITY Common Stock 36 325 325 325 36 Additional paid-in capital 2,948,600 2,952,618 2,954,932 2,953,256 2,952,261 Cumulative distributions (1,036,678) (1,007,957) (979,028) (950,635) (922,562) Accumulated earnings (269,926) (41,293) 69,927 142,134 141,983 Accumulated other comprehensive loss 40,636 40,097 21,078 12,204 (18,708) TOTAL STOCKHOLDERS’ EQUITY 1,682,668 1,943,790 2,067,234 2,157,284 2,153,010 Noncontrolling interests 174,655 199,436 210,219 219,048 218,653 TOTAL EQUITY 1,857,323 2,143,226 2,277,453 2,376,332 2,371,663 TOTAL LIABILITIES AND EQUITY $ 3,633,376 $ 3,934,401 $ 5,149,016 $ 5,250,318 $ 5,273,017 10
For the Quarter Ended 12/31/2022 For the Quarter Ended 12/31/2021 (Unaudited, USD in thousands) Industrial Office Industrial and Office Total Other Total Portfolio Industrial Office Industrial and Other Total Other Total Portfolio Revenue $ 15,945 $ 45,643 $ 61,588 $ 14,305 $ 75,893 Operating Property Expense (1,083) (5,071) (6,154) (3,203) (9,357) Property Tax Expense (1,235) (2,940) (4,175) (1,890) (6,065) Management Fees (Non-Affiliate) (63) (312) (375) (214) (589) TOTAL NOI 13,564 37,320 50,884 8,998 59,882 NON-CASH ADJUSTMENTS: Straight Line Rent (135) (4,784) (4,919) 264 (4,655) In-Place Lease Amortization (93) (702) (795) (128) (923) Deferred Termination Income (36) — (36) (508) (544) Deferred Ground Lease — 433 433 — 433 Other Intangible Amortization — 377 377 — 377 Inducement Amortization — 79 79 — 79 TOTAL CASH NOI $ 13,300 $ 32,723 $ 46,023 $ 8,626 $ 54,649 $ 14,997 $ 88,307 $ 103,304 $ 15,821 $ 119,125 (716) (12,752) (13,468) (3,219) (16,687) (1,045) (7,819) (8,864) (1,844) (10,708) (63) (753) (816) (235) (1,051) 13,173 66,983 80,156 10,523 90,679 (139) (2,640) (2,779) 141 (2,638) (88) (199) (287) (404) (691) — 498 498 2,779 3,277 — 516 516 (1) 515 — 377 377 — 377 — 69 69 — 69 $ 12,946 $ 65,604 $ 78,550 $ 13,038 $ 91,588 Non-GAAP Financial Measures 10 NOI and Cash NOI Quarter Ended
For the Year Ended 12/31/2022 For the Year Ended 12/31/2021 (Unaudited, USD in thousands) Industrial Office Industrial and Office Total Other Total Portfolio Industrial Office Industrial and Office Total Other Total Portfolio Revenue $ 61,347 $ 297,110 $ 358,457 $ 58,028 $ 416,485 Operating Property Expense (3,319) (38,200) (41,519) (10,932) (52,451) Property Tax Expense (4,299) (25,593) (29,892) (7,425) (37,317) Management Fees (Non-Affiliate) (252) (2,350) (2,602) (894) (3,496) TOTAL NOI 53,477 230,967 284,444 38,777 323,221 NON-CASH ADJUSTMENTS: Straight Line Rent (1,018) (12,207) (13,225) 634 (12,591) In-Place Lease Amortization (369) (1,346) (1,715) (490) (2,205) Deferred Termination Income (39) — (39) (2,779) (2,818) Deferred Ground Lease — 1,945 1,945 6 1,951 Other Intangible Amortization — 1,495 1,495 — 1,495 Inducement Amortization — 537 537 — 537 TOTAL CASH NOI $ 52,051 $ 221,391 $ 273,442 $ 36,148 $ 309,590 $ 59,320 $ 340,265 $ 399,585 $ 60,287 $ 459,872 (3,197) (47,027) (50,224) (11,035) (61,259) (3,734) (30,073) (33,807) (7,441) (41,248) (266) (2,910) (3,176) (890) (4,066) 52,123 260,255 312,378 40,921 353,299 (1,700) (12,171) (13,871) 312 (13,559) (343) (231) (574) (749) (1,323) — — — 2,779 2,779 — 2,066 2,066 (5) 2,061 — 1,252 1,252 1 1,253 — 278 278 — 278 $ 50,080 $ 251,449 $ 301,529 $ 43,259 $ 344,788 Non-GAAP Financial Measures (continued) 10 NOI and Cash NOI Year Ended
1 The decrease in same store quarter-to-date Cash NOI of $5.7 million is primarily driven by a $3.2 million decrease in cash termination income quarter over quarter. Non-GAAP Financial Measures (continued) For the Quarter Ended For the Year Ended (Unaudited, USD in thousands) 12/31/2022 12/31/2021 12/31/2022 12/31/2021 CASH NOI ALLOCATION Industrial $ 13,300 $ 12,946 $ 52,051 $ 50,080 Office 32,723 65,604 221,391 251,449 Industrial and Office Total $ 46,023 $ 78,550 $ 273,442 $ 301,529 Other 8,626 13,038 36,148 43,259 TOTAL CASH NOI $ 54,649 $ 91,588 $ 309,590 $ 344,788 SAME STORE CASH NOI ADJUSTMENTS Recently acquired properties — — (56,044) (45,360) Recently disposed properties (3,960) (35,117) (93,296) (140,269) Operating Partnership 10 5 32 27 TOTAL SAME STORE CASH NOI ADJUSTMENTS (3,950) (35,112) (149,308) (185,602) TOTAL SAME STORE CASH NOI $ 50,699 $ 56,476 $ 160,282 $ 159,186 SAME STORE CASH NOI Industrial $ 13,298 $ 12,982 $ 48,734 $ 47,648 Office 28,763 30,443 77,743 70,028 Industrial and Office Total $ 42,061 $ 43,425 $ 126,477 $ 117,676 Other 8,638 13,051 33,805 41,510 TOTAL SAME STORE CASH NOI $ 50,699 $ 56,476 $ 160,282 $ 159,186 Change in Same Store Cash NOI ($)1 $ (5,777) $ 1,096 Change in Same Store Cash NOI (%)1 (10.2)% 0.7 % NUMBER OF SAME STORE PROPERTIES 81 63 TOTAL SAME STORE SQUARE FEET 19,889,600 16,853,900 SAME STORE ECONOMIC OCCUPANCY 94.8 % 93.9 % 10 Same Store NOI and Cash NOI
FFO $ (119,478) $ 29,561 $ 59,027 $ 55,681 $ 58,687 Distribution to redeemable preferred shareholders (2,515) (2,516) (2,516) (2,516) (2,516) FFO attributable to common stockholders and limited partners $ (121,993) $ 27,045 $ 56,511 $ 53,165 $ 56,171 Reconciliation of FFO to AFFO: FFO attributable to common stockholders and limited partners $ (121,993) $ 27,045 $ 56,511 $ 53,165 $ 56,171 Revenues in excess of cash received, net (5,199) (3,521) (3,389) (3,298) 639 Amortization of share-based compensation 3,433 2,698 1,685 1,757 1,752 Deferred rent - ground lease 433 490 511 517 516 Amortization of above/(below) market rent, net (923) (436) (432) (414) (691) Unrealized loss (gain) on investments 15 22 68 90 (5) Amortization of debt premium/(discount), net 103 103 102 101 103 Amortization of below tax benefit amortization 377 377 372 368 377 Amortization of ground leasehold interests (98) (95) (90) (89) (91) Amortization of deferred financing costs 993 920 840 791 809 Company's share of amortization of deferred financing costs- unconsolidated entity 3,740 — — — — Amortization of lease inducements 79 105 284 69 69 Company's share of revenues in excess of cash received (straight-line rents) - unconsolidated entity (257) — — — — Company's share of amortization of above market rent - unconsolidated entity (58) — — — — Write-off of transaction costs — — 10 18 3 Write-off of reserve liability — — — — (1,166) Employee separation expense — — 2 70 777 Loss on debt breakage costs — write-off of deferred financing costs — 1,771 — — — Transaction expenses 13,724 234 5,545 2,883 966 Impairment provision, goodwill 135,270 — — — — Debt breakage costs — 13,249 — — — AFFO available to common stockholders and limited partners $ 29,639 $ 42,962 $ 62,019 $ 56,029 $ 60,229 FFO per share, basic and diluted $ (3.09) $ 0.68 $ 1.43 $ 1.34 $ 1.42 AFFO per share, basic and diluted $ 0.75 $ 1.08 $ 1.57 $ 1.41 $ 1.52 10 Non-GAAP Financial Measures (continued) FFO and AFFO (Unaudited, USD in thousands, except per share metrics) 12/31/2022 9/30/2022 For the Quarter Ended 6/30/2022 3/31/2022 12/31/2021 Reconciliation of Net Income to Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO) GAAP NET (LOSS) INCOME $ (248,142) $ (119,373) $ (76,599) $ 2,730 $ 3,675 Depreciation of building and improvements 22,336 26,268 32,494 32,093 33,035 Amortization of leasing costs and intangibles 13,037 16,456 27,575 20,858 21,977 Impairment provision, real estate 41,323 10,697 75,557 — — Equity interest of depreciation of building and improvements - unconsolidated entities 4,643 — — — — Loss from disposition of assets, net 43,767 95,513 — — — Company's share of loss on sale of unconsolidated entity 3,558 — — — —
Non-GAAP Financial Measures (continued) EBITDA, EBITDAre, Normalized EBITDAre & Adjusted EBITDA (per the credit facility) (Unaudited, USD in thousands) 12/31/2022 9/30/2022 For the Quarter Ended 6/30/2022 3/31/2022 12/31/2021 Reconciliation of Net (loss) income to EBITDAre Net (loss) income $ (248,142) $ (119,373) $ (76,599) $ 2,730 $ 3,675 Interest 16,501 24,283 22,366 21,666 21,425 Depreciation and amortization 35,275 42,628 59,980 52,863 54,922 EBITDA (196,366) (52,462) 5,747 77,259 80,022 Loss on sales of real estate, net 43,767 95,513 — — — Extinguishment of debt — 13,249 — — — (Gain)/loss on investment in unconsolidated entity 9,993 — — — — Impairment provision, real estate 41,323 10,697 75,557 — — Proportion share of adjustments for unconsolidated entities 5,121 — — — — EBITDAre (96,162) 66,997 81,304 77,259 80,022 Adjustment for acquisitions and dispositions (2,578) (2,881) — — — Write-off of transaction costs — — 10 18 3 Employee separation expense — — 2 70 777 Write-off of reserve liability — — — — (1,166) Adjustment for joint venture acquisition 7,670 — — — — Impairment provision, goodwill 135,270 — — — — Transaction expenses 13,724 234 5,545 2,883 966 Normalized EBITDAre 57,924 64,350 86,861 80,230 80,602 Reconciliation of Normalized EBITDAre to Adjusted EBITDA (per the credit facility) Amortization of deferred financing costs 993 2,691 840 791 809 Amortization of debt premium/(discount), net 103 103 102 101 103 Amortization of above/(below) market rent, net (923) (436) (432) (414) (690) Amortization of other Intangibles 377 377 372 331 377 Income taxes 174 251 142 368 338 Property management fees to non-affiliates 589 823 1,045 1,039 1,051 Deferred rent (4,765) (3,031) (2,879) (2,782) 1,154 Adjustment to Interest (1,096) 613 (932) (1,636) (1,071) Adjustment for write-off of transaction costs — — (10) (18) (3) Adjustment for unconsolidated joint venture (12,791) — — — — Reversal of adjustment for acquisitions and dispositions 2,578 2,881 — — — Less: Capital reserves (610) (654) (958) (964) (964) Adjusted EBITDA (per the credit facility) $ 42,553 $ 67,968 $ 84,151 $ 77,046 $ 81,706 10
Industrial $ 358 0.6 % $ — — % $ — — % $ — — % $ 52 0.1 % Office 776 1.3 409 0.6 882 0.9 1,082 1.2 1,230 1.4 Total Industrial and Office $ 1,134 1.9 % $ 409 0.6 % $ 882 0.9 % $ 1,082 1.2 % $ 1,282 1.5 % Other 12 — 2 — — — 1 — 450 0.4 Total Maintenance Capital Expenditures $ 1,147 1.9 % $ 411 0.6 % $ 882 0.9 % $ 1,083 1.2 % $ 1,732 1.9 % Value Enhancing Expenditures by segment: Industrial $ — — % $ 5,879 7.9 % $ 8 — % $ 2 — % $ — — % Office 1,799 3.0 — — 2,714 2.8 414 0.5 286 0.3 Total Industrial and Office $ 1,799 3.0 % $ 5,879 7.9 % $ 2,722 2.8 % $ 416 0.5 % $ 286 0.3 % Other 548 0.9 1,926 2.6 — — 781 0.9 106 0.1 Total Value Enhancing Expenditures $ 2,347 3.9 % $ 7,727 10.5 % $ 2,722 2.8 % $ 1,197 1.4 % $ 391 0.4 % Total Capital Expenditures $ 3,494 5.8 % $ 8,138 11.1 % $ 3,604 3.7 % $ 2,280 2.6 % $ 2,123 2.3 % 10 Capital Expenditures Summary (Cash Basis) (Unaudited, USD in thousands) 12/31/2022 % of NOI1 9/30/2022 % of NOI1 For the Quarter Ended 6/30/2022 % of NOI1 3/31/2022 % of NOI1 12/31/2021 % of NOI1 Maintenance Capital Expenditures by segment: 1 Represents percentage of capital expenditures compared to segment NOI
Debt & Capitalization
1 Excludes the impact of fixed-rate swaps. | 2 Represents the SOF rate as of 12/31/22, plus spread of 1.40% (Term Loans) or 1.45% and 0.1% index. (Revolver Loan). The SOF rate as of December 31, 2022 (effective date) was 4.30%, which is included in the rates. As of 9/28/22, the Secured Overnight Financing Rate ("SOFR") replaced LIBOR as the applicable reference rate for our variable rate debt. | 3 The revolving loan has a maturity date of September 30, 2023 and can be extended by a series of additional three month extension options (December 30, 2023, March 30, 2024 and June 30, 2024, respectively) which can be utilized if certain conditions are met and upon payment of an extension fee. | 4 Common equity: 35,999,898 shares and OP Units: 3,537,654 @ $66.78 NAV per share (reflects the Company's one-for-nine reverse stock split). | 5 Percentage of floating-rate debt includes impact of fixed-rate swaps. | 6 Total outstanding balance Includes one letter of credit for approximately $2.4 million. | 7 Net debt is presented since PKST has no obligation to contribute capital to the unconsolidated joint venture and has no guarantee requirement related to the debt of the unconsolidated joint venture. Net Debt (pro rata share) + Series A Preferred Equity / TEV 41.9 % Consolidated Debt less cash and cash equivalents / Total Gross Real Estate 35.6 % Net Debt / Adjusted EBITDA 7.4x Net Debt + Series A Preferred Equity / Adjusted EBITDA 8.1x Net Debt (pro rata share) / Normalized EBITDAre 7.7x Net Debt (pro rata share) + Series A Preferred Equity / Normalized EBITDAre 8.2x Unsecured Debt / TEV 20.9 % Unsecured properties / Total properties (based on net rents) 58.3 % Unsecured properties / Total properties (based on acquisition price) 64.9 % Percentage of Floating-Rate Debt 5 13.4 % Total Enterprise Value Debt Ratios Rate1 Term1 Net Debt (pro rata share) / TEV 39.2 % Liquidity TOTAL REVOLVER BORROWING BASE COMMITMENTS $ 1,155,208 SECURED DEBT Fixed-Rate Mortgages 4.48% 4.37 $ 539,803 Total Secured Debt 539,803 UNSECURED DEBT 2 2024 Term Loan 5.80% 1.3 400,000 2025 Term Loan 5.80% 3.0 400,000 2026 Term Loan 5.80% 3.3 150,000 Revolver Loan 3 5.85% 1.8 — Total Unsecured Debt 950,000 TOTAL CONSOLIDATED DEBT 1,489,803 Less: Cash & cash equivalents - excl. restricted (233,180) NET DEBT7 1,256,621 Unconsolidated Debt - pro rata share 525,704 NET DEBT (PRO RATA SHARE) 1,782,325 Series A Preferred Equity 125,000 Common Equity & OP Units 4 2,640,318 TOTAL ENTERPRISE VALUE (TEV) $ 4,547,643 Borrowing base availability (60% leverage) $ 1,155,208 Outstanding - term loan 6 (950,000) Outstanding - letters of credit 6 (2,358) REVOLVER REMAINING AVAILABLE CAPACITY $ 202,850 Cash and cash equivalents (excl. restricted) $ 233,180 Revolver remaining capacity 202,850 TOTAL LIQUIDITY $ 436,030 Market Capitalization & Liquidity Overview 21 As of December 31, 2022 (Unaudited, USD in thousands)
12/31/2022 9/30/2022 As of 6/30/2022 3/31/2022 12/31/2021 (Unaudited, USD in thousands) SECURED FIXED-RATE DEBT Mortgage borrowings on wholly owned portfolio $ 539,803 $ 541,689 $ 1,013,410 $ 1,015,816 $ 1,018,015 Total Secured Fixed-Rate Debt 539,803 541,689 1,013,410 1,015,816 1,018,015 UNSECURED FLOATING-RATE DEBT Revolving Credit Facility: Revolver Loan — — 373,500 373,500 373,500 2023 Term Loan — — 200,000 200,000 200,000 2024 Term Loan 400,000 400,000 400,000 400,000 400,000 2025 Term Loan 400,000 400,000 400,000 400,000 400,000 2026 Term Loan 150,000 150,000 150,000 150,000 150,000 Total Unsecured Floating-Rate Debt 950,000 950,000 1,523,500 1,523,500 1,523,500 TOTAL CONSOLIDATED DEBT $ 1,489,803 $ 1,491,689 $ 2,536,910 $ 2,539,316 $ 2,541,515 Net Debt (pro rata share) to Enterprise Value ratio 39.2 % 40.4 % 45.7 % 41.1 % 41.3 % Fixed charge coverage (pro rata share)1 2.0x 2.2x 3.4x 3.3x 3.1x Fixed charge coverage (consolidated) 2.2x 2.2x 3.4x 3.3x 3.1x Unsecured leverage ratio 20.9 % 21.0 % 30.0 % 26.6 % 26.5 % Interest coverage ratio (pro rata share)1 2.2x 2.7x 3.9x 3.9x 4.0x Interest coverage ratio (consolidated) 2.8x 2.7x 3.9x 3.9x 4.0x 21 1Joint venture reporting commenced in Q4'22 due to Office Joint Venture forming in Q3'22 and one quarter reporting lag. Debt Summary
(Unaudited, USD in thousands) Collateral SECURED DEBT Interest Rate Maturity Date Outstanding Balance INDUSTRIAL AND OFFICE HealthSpring4 4.18% 4/6/2023 $ 19,107 Samsonite 6.08% 9/1/2023 17,998 Pepsi Bottling Ventures Loan 3.69% 10/1/2024 17,836 BOA/KeyBank Loan 1 4.32% 5/1/2028 250,000 Total Industrial and Office 304,941 OTHER Highway 94 Loan 3.75% 8/1/2024 $ 12,740 AIG Loan II 2 4.15% 11/1/2025 122,328 AIG Loan 3 4.96% 2/1/2029 99,794 Total Other 234,862 Total Consolidated Secured Debt $ 539,803 1 The BOA KeyBank portfolio includes the following properties: IGT, 3M, Amazon, and Southern Company. 2 The AIG II portfolio includes the following properties: Owens Corning, Westgate II (Wood Group), Administrative Offices of the Pennsylvania Courts, Wyndham Worldwide, MGM Corporate Center, and Hitachi Astemo 3 The AIG portfolio includes the following properties: Northrop Grumman, Schlumberger, Raytheon Technologies, Avnet, and 30 Independence. 4 On March 6, 2023, the Company repaid the outstanding balance of $19.1 million related to the HealthSpring mortgage loan that was maturing in April 2023. 21 Secured Debt Schedule As of December 31, 2022
$37,105 $— $430,576 $522,328 $99,794 2023 2024 2025 2026 2027 2028 2029 (Unaudited,
USD in thousands\) Statistics \(Including Effect of Swaps\) Fixed Floating Total Amount $1,289,803 $200,000 $1,489,803 Percentage of Total Debt 87% 13% 100% W.A. Term Remaining \(Yrs\) 3.1 3.0 3.1 W.A. Interest Rate
\(%\) 4.0% 5.9% 4.1% 7 $250,000 8 $122,3284 $400,0005 $400,000\(A\) 1 12,740 2 17,836 3 Debt Maturity Schedule \(Including Effect of Interest Rate Swaps\) As of December 31, 2022 $150,0006 \(A\) 9 9 2024 Term Loan 2025 and 2026 Term
loans Mortgage loans \(Industrial and Office\) Mortgage loans \(Other\) Revolver 1 Represents the Samsonite and HealthSpring \(paid off subsequent to year-end\) mortgage loans. | 2 Represents the Highway 94 loan. | 3 Represents the Pepsi Bottling
Ventures mortgage loan. | 4 Represents the AIG II mortgage loan. | 5 Represents the 2025 Term Loan. | 6 Represents the 2026 Term Loan. | 7 Represents the BOA/KeyBank Loan. | 8 Represents the AIG Loan. | 9 Principal repayments on the individual
mortgages do not include the net debt premium/\(discount\) of $0.24 million and deferred financing costs of $\(4.6\) million. \(A\): Subsequent to year-end, the Company extended the maturity date, including extension options, of its revolving credit
facility to January 2026 and prepaid its $400 million 2024 Term Loan by drawing on the revolving credit facility. 21
Leasing Activity & Asset Management
NEW LEASES 530 Great Circle Road Nashville, TN 1/1/2024 12/31/2038 — 2 98,352 $ 21.59 $ 76.97 $ 21.50 $ 18.22 18 % New leases total / weighted average — 98,352 $ 21.59 $ 76.97 $ 21.50 $ 18.22 18 % RENEWAL LEASES Wood Group Houston, TX 1/1/2027 12/31/2033 7.0 226,287 $ 10.39 $ 40.00 $ 26.50 $ 26.55 — % Total renewal (office) - leases/weighted average 7.0 226,287 $ 10.39 $ 40.00 $ 26.50 $ 26.55 — % NEW AND RENEWAL LEASES Tenant / Property Location New Lease Start New Lease Date Expiration Date Term (Yrs) Square Feet Leasing Commissions $/ SF Tenant Improvement $/SF Starting Net Rent/ SF Prior Net Rent/ SF1 Net Rent Change From Prior Lease OFFICE LEASING INDUSTRIAL LEASING NEW LEASES None New leases total / weighted average RENEWAL LEASES None Total renewal (industrial) - leases/weighted average Total / weighted average 9.4 324,639 $ 13.78 $ 51.20 $ 24.99 $ 24.03 4 % Tenant 26 Location TERMINATIONS/CONTRACTIONS Previous Lease Expiration Date Termination Date Square Feet Termination Income None 1 Prior Net Rents/SF from new leases represent the rents of the previous in place tenant. 2 Lease restricts certain disclosures. Leasing Activity - Executed Leases For the Quarter-Ended December 31, 2022
1 Occupancy changes reflect leasing activity commencing during the quarter. 2 Expiring square footage includes square footage for tenants who have signed renewal leases. 3 Retention rate: Renewal leases divided by expiring square footage. 26 For the Quarter-Ended 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 PORTFOLIO SQUARE FOOTAGE CHANGES Total square feet at beginning of period 21,057,700 29,159,000 29,157,000 29,157,000 29,157,000 Acquisitions — — — — — Dispositions (1,168,700) (8,101,300) — — — Remeasurements / other 700 — 2,000 — — Total square feet at end of period 19,889,700 21,057,700 29,159,000 29,157,000 29,157,000 OCCUPANCY CHANGES 1 Occupied square feet beginning of period / Occupancy Rate 20,030,200 / 95.1 % 27,023,400 / 92.7 % 27,223,000 / 93.4 % 27,340,800 / 93.8 % 27,525,200 / 94.4 % Expirations: Expiring square footage — (453,200) (335,200) (83,600) (184,400) 2 Lease terminations (70,300) (32,000) (135,030) (124,400) (7,500) Total expirations (70,300) (485,200) (470,230) (208,000) (191,900) Leases commencing: Renewal leases — — 72,200 6,100 — 2 New leases 58,800 362,100 190,900 84,100 — Expansion leases — — 7,500 — 7,500 Other — — — — — Total leasing activity 58,800 362,100 270,600 90,200 7,500 Occupied acquired square feet — — — — — Occupied disposed square feet (1,169,400) (6,870,100) — — — Total occupancy activity from acquisitions & dispositions (1,169,400) / 100 % (6,870,100) — — — Other occupancy activity 700 — — — — Total occupancy activity (1,180,200) (6,993,200) (199,630) (117,800) (184,400) Occupied square feet at end of period / Occupancy Rate 18,850,000 / 94.8 % 20,030,200 / 95.1 % 27,023,400 / 92.7 % 27,223,000 / 93.4 % 27,340,800 / 93.8 % Retention3 —% —% 22% 7% —% Leasing Activity – Economic Occupancy Summary
NAV Component Summary
29 Annualized Base Rents Balance Sheet Components (cont'd) ABR Percentage of Leased Square Feet LIABILITIES Industrial Revolving credit facility and term loans1 $ 950,000 Investment grade $ 28,253 27.0 % Mortgages payable1 540,000 WHOLLY OWNED PORTFOLIO $ 223,942 95.5 % Balance Sheet Components Real Estate Net Book Value NON-OPERATING, NON-COMMERCIAL REAL ESTATE ASSETS REAL ESTATE NET BOOK VALUE Sub-investment grade 17,302 14.4 Accrued tenant improvements 620 Unrated credit 6,998 7.2 Prepaid tenant rent 12,399 52,553 48.6 Real estate taxes payable 6,296 Office Restricted reserves 627 Investment grade 90,848 22.0 Deferred compensation 8,913 Sub-Investment grade 34,444 9.0 Distributions payable 12,402 Unrated credit 6,095 1.5 Interest payable 13,654 131,387 32.4 Other liabilities 25,950 TOTAL LIABILITIES $ 1,570,861 Industrial and Office Total $ 183,940 81.0 % SERIES A PREFERRED SHARES $ 125,000 Other Investment grade $ 18,698 9.6 % COMMON SHARES + OP UNITS OUTSTANDING 39,538,000 Sub-investment grade 19,922 4.6 Unrated credit 1,382 0.3 $ 40,002 14.5 % Cash and cash equivalents $ 233,180 Industrial $ 637,298 Restricted cash 4,764 Office 1,735,181 Construction in progress 1,994 Industrial and Office Total 2,372,479 Investments in unconsolidated entities 178,647 Other 512,873 Goodwill/operating company 94,678 WHOLLY OWNED PORTFOLIO $ 2,885,352 Cash - surrender value (DCP) 12,442 Tenant rent receivable 1,814 Prepaid insurance 2,744 Swap assets 41,404 Other assets 14,877 TOTAL NON-OPERATING, NON-COMMERCIAL REAL ESTATE ASSETS $ 586,544 1 Excludes debt premium and deferred financing costs. NAV Components As of December 31, 2022 (Unaudited, USD in thousands)
Property Information
3 Industrial 3M 1650 Macom Drive Chicago IL 978,100 Single Tenant 100.0 % Warehouse 2016 3.8 2.2 % 4 Industrial Samsonite 10480 Yeager Road Jacksonville FL 817,700 Single Tenant 100.0 % Warehouse 2008 1.9 1.8 % 5 Industrial Shaw Industries 445 Northport Parkway Savannah GA 1,001,500 Single Tenant 100.0 % Warehouse 2018 10.3 1.5 % 6 Industrial PepsiCo 8060 State Road 33 North Tampa FL 605,400 Single Tenant 100.0 % Warehouse 2018 5.6 1.4 % 7 Industrial Amcor 975 West Main Street Cleveland OH 586,700 Single Tenant 100.0 % Manufacturing 1997 9.8 1.2 % 8 Industrial Amazon (Arlington Heights) 1455 West Cellular Drive Chicago IL 182,900 Single Tenant 100.0 % Warehouse 2020 — 4 1.1 % 9 Industrial Fox Head 5 16752 Armstrong Avenue Irvine CA 81,600 Single Tenant 100.0 % Industrial/R&D 2012 5.0 1.0 % 10 Industrial Renfro 6 1702 Springdale Drive Clinton SC 566,600 Single Tenant 100.0 % Warehouse 1986 0.5 1.0 % 11 Industrial Pepsi Bottling Ventures 390 Business Park Drive Winston-Salem NC 526,300 Single Tenant 100.0 % Warehouse 2008 9.6 0.8 % 12 Industrial Roush Industries 333/777 Republic Drive Detroit MI 169,200 Single Tenant 100.0 % Industrial/R&D 2000 5.9 0.7 % 13 Industrial Berry Global 1515 Franklin Boulevard Chicago IL 193,700 Single Tenant 100.0 % Manufacturing 2003 10.0 0.7 % 14 Industrial OceanX 6390 Commerce Court Columbus OH 312,000 Single Tenant 100.0 % Warehouse 2015 6.6 0.7 % 15 Industrial Atlas Copco 3301 Cross Creek Parkway Detroit MI 120,000 Single Tenant 100.0 % Industrial/R&D 2014 2.8 0.6 % 16 Industrial Huntington Ingalls (500 W. Park Lane) 500 West Park Lane Hampton Roads VA 258,300 Single Tenant 100.0 % Warehouse 1999 5.0 0.6 % 17 Industrial Huntington Ingalls (300 W. Park Lane) 300 West Park Lane Hampton Roads VA 257,200 Single Tenant 100.0 % Warehouse 2000 5.0 0.6 % 18 Industrial ZF WABCO 8225 Patriot Boulevard Charleston SC 145,200 Single Tenant 100.0 % Warehouse 2016 10.7 0.5 % 19 Industrial TransDigm 110 Algonquin Parkway Northern New Jersey NJ 114,300 Single Tenant 100.0 % Manufacturing 1986 5.3 0.5 % 20 Industrial Hopkins 428 Peyton Street Emporia KS 320,800 Single Tenant 100.0 % Manufacturing 2000 14.0 0.4 % 21 Industrial Fidelity Building Services 25 Loveton Circle Baltimore MD 54,800 Single Tenant 100.0 % Industrial/R&D 1981 12.0 0.3 % INDUSTRIAL TOTAL 9,650,000 100.0 % 6.7 $ 52,553 Address Property Market Property State Building Square Feet Property Sub Type Renovated Year Built/ 1, 3 Property WALT % of Total ABR 825 Rogers Road Stockton/Modesto CA 1,501,400 Warehouse 2015 7.7 3.3 % 11999 National Road Columbus OH 856,300 Tenancy Type % Leased2 Single Tenant 100.0 % Single Tenant 100.0 % Warehouse 2016 — 4 2.7 % Year shown is either the year built or year substantially renovated. Total calculated as a weighted average based on rentable square feet. Total calculated as a weighted average based on ABR. Lease restricts certain disclosures. Sold in January 2023 Sold in February 2023 31 Property List As of December 31, 2022 USD in thousands, except annualized base rents / SF metrics Segment Property/Tenant Name Industrial RH Industrial Amazon (Etna)
23 Office Keurig Dr. Pepper (53 South Avenue) 53 South Avenue Boston MA 280,600 Single Tenant 100.0 % Office 2014 6.9 3.9% 24 Office Freeport McMoRan 333 N. Central Ave Phoenix AZ 249,000 Single Tenant 99.0 % Office 2010 4.4 3.5% 25 Office Amazon 13820 Sunrise Valley Drive Herndon VA 269,900 Single Tenant 100.0 % Office 2020 9.3 3.5% 26 Office Maxar Technologies 1300 West 120th Avenue Denver CO 430,000 Single Tenant 100.0 % Office 2002 7.5 3.4% 27 Office Terraces at Copley Point 5887 Copley Drive San Diego CA 201,700 Multi-Tenant 100.0 % Office 2009 5.4 3.1% 28 Office LPL (1055 & 1060 LPL Way) 1055 & 1060 LPL Way Charlotte SC 307,200 Single Tenant 100.0 % Office 2016 13.8 2.6% 29 Office Travel & Leisure, Co. 14 Sylvan Way Northern New Jersey NJ 203,500 Single Tenant 100.0 % Office 2013 6.7 2.6% 30 Office Wood Group (Westgate III) 17325 Park Row Houston TX 226,300 Single Tenant 100.0 % Office 2014 11.0 2.5% 31 Office IGT 6355 South Buffalo Drive Las Vegas NV 222,300 Single Tenant 100.0 % Office 2008 8.0 2.3% 32 Office International Paper 1740 International Drive Memphis TN 238,600 Single Tenant 100.0 % Office 2015 7.0+ 4 2.2% 33 Office onsemi (5701 N. Pima Road) 5701 N. Pima Road Phoenix AZ 133,400 Single Tenant 100.0 % Office 2017 — 4 1.5% 34 Office Zoetis 10 Sylvan Way Northern New Jersey NJ 125,700 Single Tenant 100.0 % Office 2016 — 4 1.4% 35 Office McKesson (5801 N. Pima Road) 5801 North Pima Road Phoenix AZ 124,900 Single Tenant 100.0 % Office 2019 — 4 1.3% 36 Office McKesson (5601 N. Pima Road) 5601 North Pima Road Phoenix AZ 138,200 Single Tenant 100.0 % Office 2017 — 4 1.3% 37 Office 40 Wight 40 Wight Avenue Baltimore MD 132,200 Single Tenant 93.0 % Office 2017 9.8 1.3% 38 Office York Space Systems (East Village) 6060 South Willow Drive Denver CO 138,100 Single Tenant 100.0 % Office/R&D 2020 9.0 1.3% 39 Office Corteva Agriscience 8501 NW 62nd Ave Des Moines IA 184,300 Single Tenant 100.0 % Office/Lab 2014 3.9 1.3% 40 Office Keurig Dr. Pepper (63 South Avenue) 63 South Avenue Boston MA 150,700 Single Tenant 100.0 % Office/Lab/R&D 2013 6.9 1.2% 41 Office LPL (1040 LPL Way) 1040 LPL Way Charlotte SC 144,400 Single Tenant 100.0 % Office 2016 13.8 1.2% 42 Office Toshiba TEC 3901 South Miami Boulevard Raleigh/Durham NC 200,800 Single Tenant 100.0 % Office 2016 5.3 1.2% 43 Office Mercury Systems 50 Minuteman Road Boston MA 145,300 Single Tenant 100.0 % Office/Lab 1997 9.3 1.1% Address Property Market Property State Building Square Feet Tenancy Type Leased %2 Property Sub Type Renovated Year Built/ 1,3 WALT Property 3 % of Total ABR 22 Office Southern Company 3525 & 3535 Colonnade Parkway Birmingham AL 669,400 Single Tenant 100.0 % Office 2018 21.2 4.0% Property List (continued) 31 As of December 31, 2022 USD in thousands, except annualized base rents / SF metrics Segment Property / Tenant Name Year shown is either the year built or year substantially renovated. Total calculated as a weighted average based on rentable square feet. Total calculated as a weighted average based on ABR. Lease restricts certain disclosures. Amazon was sold in March 2023.
45 Office Avnet (Phoenix) 2211 S 47th Street Phoenix AZ 176,400 Single Tenant 100.0 % Office 1997 3.7 1.0 % 46 Office PPG 400 Bertha Lamme Drive Pittsburgh PA 118,000 Single Tenant 100.0 % Office 2010 8.0 1.0 % 47 Office MISO 720 City Center Drive Indianapolis IN 133,400 Single Tenant 100.0 % Office 2016 5.3 0.9 % 48 Office Amentum (Heritage III) 13500 Heritage Parkway Dallas/Fort Worth TX 119,000 Single Tenant 100.0 % Office 2006 — 4 0.9 % 49 Office Draeger Medical Systems Six Tech Drive Boston MA 128,400 Single Tenant 100.0 % Office/Lab 2020 8.5 0.8 % 50 Office Fresenius Medical Care 3355 Earl Campbell Pkwy Tyler TX 81,000 Single Tenant 100.0 % Office 2016 8.8 0.8 % 51 Office Cigna (500 Great Circle Road) 500 Great Circle Road Nashville TN 72,200 Single Tenant 100.0 % Office 2012 4.5 0.6 % 52 Office Cigna (Express Scripts) 501 Ronda Court Pittsburgh PA 70,500 Single Tenant 100.0 % Office/Data Center 2015 2.5 0.6 % 53 Office AT&T (14500 NE 87th Street) 14500 NE 87th Street Seattle/Puget Sound WA 60,000 Single Tenant 100.0 % Office/Data Center 1995 4.7 0.6 % 54 Office AT&T (14520 NE 87th Street) 14520 NE 87th Street Seattle/Puget Sound WA 59,800 Single Tenant 100.0 % Office/Data Center 1995 4.7 0.6 % 55 Office Parallon 6451 126th Avenue North Tampa FL 83,200 Single Tenant 100.0 % Office 2013 2.2 0.6 % 56 Office Tech Data 19031 Ridgewood Parkway San Antonio TX 58,000 Single Tenant 100.0 % Office 2014 1.9 0.4 % 57 Office Rapiscan Systems 23 Frontage Road Boston MA 64,200 Single Tenant 100.0 % Office/Lab 2014 4.4 0.4 % 58 Office 136 & 204 Capcom 136 & 204 Capcom Avenue Raleigh/Durham NC 63,000 Multi Tenant 100.0 % Office/R&D 2010 3.2 0.4 % 59 Office AT&T (14560 NE 87th Street) 14560 NE 87th Street Seattle/Puget Sound WA 36,000 Single Tenant 100.0 % Office/Data Center 1995 4.7 0.4 % 60 Office 530 Great Circle Road 530 Great Circle Road Nashville TN 98,400 Single Tenant 100.0 % Office/Lab 2011 — 4 — % OFFICE TOTAL 6,452,400 99.8 % 7.5 $ 131,387 31 Property Market Property State Building Square Feet Renovated WALT Year Built/ Property 1, 3 3 % of Total ABR Platteville CO 114,500 Tenancy Type % Leased2 Property Sub Type Single Tenant 100.0 % Office 2013 10.8 1.0 % Year shown is either the year built or year substantially renovated. Total calculated as a weighted average based on rentable square feet. Total calculated as a weighted average based on ABR. Lease restricts certain disclosures. Property List (continued) As of December 31, 2022 USD in thousands, except annualized base rents / SF metrics Segment Property/Tenant Name Address 44 Office Occidental Petroleum 501 North Division Street
Address Property Market Property State Building Square Feet Tenancy Type % Leased 2 Property Sub- Type Renovated Year Built/ 1 3 WALT Property 3 % of Total ABR 61 Other Wyndham Hotels & Resorts 22 Sylvan Way Northern New Jersey NJ 249,400 Single Tenant 100.0 % Office 2009 6.7 3.2 % 62 Other Wood Group (Westgate II) 17320 Katy Freeway Houston TX 186,300 Single Tenant 100.0 % Office 2014 1.3 2.0 % 63 Other Schlumberger 1200 Enclave Parkway Houston TX 149,700 Single Tenant 98.3 % Office 1999 — 4 1.6 % 64 Other Level 3 (ParkRidge One) 10475 Park Meadows Drive Denver CO 166,700 Single Tenant 100.0 % Office 1999 — 4 1.5 % 65 Other Raytheon Technologies 2730 West Tyvola Road Charlotte NC 198,900 Single Tenant 100.0 % Office 1999 — 4 1.4 % 66 Other Hitachi Energy USA 500 West Highway 94 Jefferson City MO 660,000 Single Tenant 100.0 % Manufacturing 1972 1.7 1.2 % 67 Other Avnet (Chandler) 6700 West Morelos Place Phoenix AZ 231,500 Single Tenant 100.0 % Industrial/R&D 2008 — 4 1.2 % 68 Other Franklin Center 6841 Benjamin Franklin Drive Baltimore MD 202,500 Multi-Tenant 55.0 % Office 2008 3.6 1.2 % 69 Other KBR 345 Bob Heath Drive Huntsville AL 120,000 Single Tenant 100.0 % Office 2013 0.7 0.9 % 70 Other 30 Independence 30 Independence Boulevard Northern New Jersey NJ 207,300 Multi-Tenant 52.0 % Office 2020 8.4 0.8 % 71 Other Northrop Grumman 4065 Colonel Glenn Highway Cincinnati/Dayton OH 99,200 Single Tenant 100.0 % Office 2012 1.7 0.7 % 72 Other MGM Corporate Center (880 Grier Drive) 880 Grier Drive Las Vegas NV 81,000 Single Tenant 100.0 % Office 1988 1.7 0.6 % 73 Other Hitachi Astemo 9296 Intermodal North Court Columbus OH 304,600 Single Tenant 100.0 % Warehouse 2014 2.2 0.5 % 74 Other MGM Corporate Center (840 Grier Drive) 840 Grier Drive Las Vegas NV 60,500 Single Tenant 100.0 % Office 1997 1.7 0.4 % 75 Other Administrative Office of Pennsylvania Courts 5035 Ritter Road Harrisburg PA 56,600 Single Tenant 100.0 % Office/Data Center 1988 1.5 0.3 % 76 Other Owens Corning 4535 Enterprise Drive Northwest Charlotte NC 61,200 Single Tenant 100.0 % Manufacturing 1998 2.0 0.2 % 77 Other MGM Corporate Center (950 Grier Drive) 950 Grier Drive Las Vegas NV 26,800 Single Tenant 100.0 % Office 1989 1.7 0.1 % 78 Other Gold Pointe Corp Ctr Bldg C 11971 Foundation Place Sacramento CA 145,900 Single Tenant 3.0 % Office 2002 — — % 79 Other Quebec Court II 5800 South Quebec Street Denver CO 157,300 Single Tenant — % Office 1980 — — % 80 Other Park Meadows Corporate Center II 10002 Park Meadows Drive Denver CO 70,300 Single Tenant — % Office 2000 — — % 81 Other Crosspoint 20022 North 31st Avenue Phoenix AZ 351,600 Multi-Tenant 8.0 % Office 2021 — 4 — % OTHER TOTAL 3,787,300 75.4 % 3.1 $ 40,002 TOTAL CONSOLIDATED PORTFOLIO 19,889,700 95.5 % 7.1 $ 223,942 31 Property List (continued) As of December 31, 2022 USD in thousands, except annualized base rents / SF metrics Segment Property / Tenant Name Year shown is either the year built or year substantially renovated. Total calculated as a weighted average based on rentable square feet. Total calculated as a weighted average based on ABR. Lease restricts certain disclosures.
Portfolio Characteristics
1 Weighted average rental increase is based on the remaining term of each lease as of December 31, 2022. Excludes leases with remaining term less than one year. Lease Escalation Frequency Annually % Annualized Base Rents 86.3% Growth Rate 1 2.1% Every 5 Years 10.2 0.6 Other Frequencies 2.0 4.1 No Escalations 1.5 — PORTFOLIO TOTAL / WEIGHTED AVERAGE 100.0% 2.0% Wtd. Avg. Annual Rent Growth As of December 31, 2022 Annually 84.9% Every 5 Years 11.0% Other Frequencies 2.5% No Escalations 2.0% Annually 89.0% Other Frequencies 4.4% No Escalations 6.6% Annually 92.6% Every 5 Years 7.4% Annually 83.4% 36 Every 5 Years 14.9% Other 1.7% Industrial Industrial and Office Office Other
Tenant/Major Tenant Rating1 Top 10 Tenants % of Annualized Base Rents2 WALT (years) 1 Amazon3 AA 7.3% 8.9 2 Keurig Dr. Pepper BBB 5.1 6.9 3 Wood Group USA4 HY65 4.5 6.6 4 Southern Company Services BBB+ 4.0 21.2 5 LPL Baa36 3.8 13.8 6 Freeport McMoRan Baa26 3.5 4.4 7 Maxar Technologies B+ 3.4 7.5 8 RH Ba36 3.3 7.7 9 Wyndham Hotels & Resorts BB- 3.2 6.7 10 McKesson BBB+ 2.7 5.8 Top 10 Total/Average Lease Term 40.8% 9.1 Investment Grade Rating of: Tenant Profile Tenant 30.8 % Guarantor 12.5 Number of Tenants 74 Average Square Footage Leased per Tenant 254,736 Tenant/Guarantor 43.3 Parent 18.2 Average Annualized Base Rents per Sq Ft - Office $20.36 Average Annualized Base Rents per Sq Ft - Industrial $5.45 Total Investment Grade 61.5 % Average Annualized Base Rents per Sq Ft - Other $10.56 Weighted Average Credit Rating BBB- Weighted Average Lease Term (WALT) 7.1 Tenant Concentration: Consolidated As of December 31, 2022 36 1 Represents S&P ratings of tenants, guarantors, or non-guarantor parent entities, issued at http://www.spgglobal.com, unless otherwise noted. 2 Based on annualized base rents by tenant as compared to consolidated total. 3 Represents the combined base rental revenue for the three properties (one sold subsequent to year end). 4 Represents the combined base rental revenue for two properties. 5 Represents a rating issued by Bloomberg services. 6 Represents a rating issued by Moody's at http://www.moodys.com.
Tenant/Major Tenant Rating1 Top 10 Tenants % of Annualized Base Rents2 WALT (years) 1 Amazon AA 8.9% 8.9 2 Keurig Dr. Pepper BBB 6.2 5.3 3 Southern Company BBB+ 4.9 21.2 4 LPL Baa34 4.6 13.8 5 Freeport McMoran Baa24 4.3 4.4 6 Maxar Technologies B+ 4.1 7.5 7 RH Ba34 4.0 7.7 8 McKesson BBB+ 3.2 5.8 9 Travel & Leisure, Co. BB- 3.1 6.7 10 Wood Group HY63 3.0 11.0 Top 10 Total/Average Lease Term 46.3% 9.4 Investment Grade Rating of: Tenant Profile Tenant 32.1 % Guarantor 13.7 Number of Tenants 54 Average Square Footage Leased per Tenant 296,159 Tenant/Guarantor 45.8 Parent 18.9 Average Annualized Base Rents per Sq Ft: Industrial and Office $11.42 Weighted Average Lease Term (WALT) 8.0 Total Investment Grade 64.7 % Weighted Average Credit Rating BBB Tenant Concentration: Industrial and Office As of December 31, 2022 36 1 Represents S&P ratings of tenants, guarantors, or non-guarantor parent entities, issued at http://www.spgglobal.com, unless otherwise noted. 2 Based on annualized base rents by tenant for industrial and office segments. 3 Represents a rating issued by Bloomberg services. 4 Represents a rating issued by Moody's at http://www.moodys.com.
Tenant/Major Tenant Rating1 Top 10 Tenants % of Annualized Base Rents2 WALT (years) 1 Amazon AA 16.1% 8.6 2 RH Ba34 14.0 7.7 3 3M Company A+ 9.3 3.8 4 Samsonite Ba24 7.7 1.9 5 Shaw Industries AA 6.3 10.3 6 PepsiCo A+ 6.0 5.6 7 Amcor BBB 5.1 9.8 8 Huntington Ingalls BBB- 4.8 5.0 9 Fox Head6 BB 4.2 5.0 10 Renfro Corporation6 NR 4.1 0.5 Top 10 Total/Average Lease Term 77.6% 6.3 Investment Grade Rating of: Tenant Profile Tenant 9.3 % Guarantor 18.7 Number of Tenants 19 Average Square Footage Leased per Tenant 507,895 Tenant/Guarantor 28.0 Parent 25.8 Average Annualized Base Rents per Sq Ft: Industrial $5.45 Weighted Average Lease Term (WALT) 6.7 Total Investment Grade 53.8 % Weighted Average Credit Rating BBB Tenant Concentration: Industrial As of December 31, 2022 36 1 Represents S&P ratings of tenants, guarantors, or non-guarantor parent entities, issued at http://www.spgglobal.com, unless otherwise noted. 2 Based on annualized base rents by tenant for industrial segment. 3 Represents a rating issued by Bloomberg services. 4 Represents a rating issued by Moody's at http://www.moodys.com. 5 Indicates that the tenant is not rated by the major credit agencies used. 6 Assets were sold subsequent to year-end December 31, 2022.
Tenant/Major Tenant Rating1 Top 10 Tenants % of Annualized Base Rents2 WALT (years) 1 Keurig Dr. Pepper BBB 8.7% 6.9 2 Southern Company Services BBB+ 6.9 21.2 3 LPL Baa33 6.5 13.8 4 Freeport McMoRan Baa23 6.0 4.4 5 Amazon AA 6.0 9.3 6 Maxar Technologies B+ 5.7 7.5 7 McKesson BBB+ 4.5 5.7 8 Wyndham Hotels & Resorts BB- 4.4 6.7 9 Wood Group HY64 4.2 11.0 10 IGT BB+ 3.8 8.0 Top 10 Total/Average Lease Term 56.7% 9.8 Investment Grade Rating of: Tenant Profile Tenant 41.2 % Number of Tenants 35 Guarantor 11.8 Average Square Footage Leased per Tenant 181,217 Tenant/Guarantor 53.0 Parent 16.1 Total Investment Grade 69.1 % Average Annualized Base Rents per Sq Ft: Office $20.36 Weighted Average Lease Term (WALT) 8.5 Weighted Average Credit Rating BBB Tenant Concentration: Office As of December 31, 2022 36 1 Represents S&P ratings of tenants, guarantors, or non-guarantor parent entities, issued at http://www.spgglobal.com, unless otherwise noted. 2 Based on annualized base rents by tenant for office segment. 3 Represents a rating issued by Moody's at http://www.moodys.com. 4 Represents a rating issued by Bloomberg services.
Industry Concentration: Consolidated As of December 31, 2022 36 Industry Top 10 Industries % of Annualized Base Rents1 Top 20 Sub-Industries Sub-Industry % of Annualized Base Rents1 1 Capital Goods 15.3 % 1 Aerospace & Defense 10.3 % 2 Consumer Services 9.5 2 Soft Drinks 7.3 3 Materials 8.8 3 Internet & Direct Marketing Retail 7.3 4 Food, Beverage & Tobacco 7.3 4 Oil & Gas Equipment & Services 6.1 5 E-Commerce 7.3 5 Hotels, Resorts & Cruise Lines 5.8 6 Energy 7.1 6 Health Care Services 4.1 7 Health Care Equipment & Services 6.2 7 Renewable Electricity 4.0 8 Commercial & Professional Services 5.5 8 Investment Banking & Brokerage 3.8 9 Consumer Durables & Apparel 5.2 9 Copper 3.5 10 Utilities 4.9 10 Paper Packaging 3.4 Top 10 total 77.1 % 11 Casinos & Gaming 3.3 All others 22.9 % 12 Commercial & Professional Services 3.3 13 Homefurnishing Retail 3.3 14 Apparel, Accessories & Luxury Goods 2.8 15 Technology Distributors 2.6 16 Integrated Telecommunication Services 2.6 17 Industrial Conglomerates 2.2 18 IT Consulting & Other Services 2.0 19 Textiles 1.5 20 Alternative Carriers 1.5 Top 20 total 80.7 % All others 19.3 % 1 Based on annualized base rents for wholly owned portfolio.
Industry Concentration: Industrial and Office As of December 31, 2022 2 Materials 10.8 3 Food, Beverage & Tobacco 8.9 4 E-Commerce 8.9 5 Health Care Equipment & Services 7.5 6 Consumer Durables & Apparel 6.4 7 Utilities 6.0 8 Consumer Services 5.9 9 Commercial & Professional Services 5.2 10 Retailing 5.2 Top 10 total 78.7 % All others 21.3 % 36 2 Soft Drinks 8.9 3 Internet & Direct Marketing Retail 8.9 4 Health Care Services 5.0 5 Renewable Electricity 4.9 6 Investment Banking & Brokerage 4.6 7 Copper 4.3 8 Paper Packaging 4.1 9 Commercial & Professional Services 4.0 10 Homefurnishing Retail 4.0 11 Apparel, Accessories & Luxury Goods 3.4 12 Integrated Telecommunication Services 3.2 13 Hotels, Resorts & Cruise Lines 3.1 14 Oil & Gas Equipment & Services 3.0 15 Casinos & Gaming 2.7 16 Industrial Conglomerates 2.7 17 Textiles 1.8 18 Semiconductors 1.8 19 Technology Distributors 1.7 20 Pharmaceuticals 1.7 Top 20 total 83.7 % All others 16.3 % Top 10 Industries Top 20 Sub-Industries Industry % of Annualized Base Rents1 Sub-Industry % of Annualized Base Rents1 1 Capital Goods 13.9 % 1 Aerospace & Defense 9.9 % 1 Based on annualized base rents for the industrial and office segments.
Industry Concentration: Industrial As of December 31, 2022 2 Capital Goods 20.9 3 E-Commerce 16.1 4 Retailing 14.0 5 Food, Beverage & Tobacco 9.6 6 Materials 7.9 7 Automobiles & Components 5.0 8 Commercial & Professional Services 4.1 Top 8 total 100.0 % All others — % 36 2 Homefurnishing Retail 14.0 3 Apparel, Accessories & Luxury Goods 11.8 4 Soft Drinks 9.6 5 Industrial Conglomerates 9.3 6 Aerospace & Defense 6.9 7 Textiles 6.3 8 Paper Packaging 5.1 9 Leisure Products 4.2 10 Diversified Support Services 4.2 11 Auto Components 3.2 12 Metal & Glass Containers 2.8 13 Industrial Machinery 2.6 14 Construction Machinery & Heavy Trucks 2.1 15 Auto Parts & Equipment 1.8 Top 15 total 100.0 % All others — % Top 8 Industries Top 15 Industries Industry % of Annualized Base Rents1 Sub-Industry % of Annualized Base Rents1 1 Consumer Durables & Apparel 22.4 % 1 Internet & Direct Marketing Retail 16.1 % 1 Based on annualized base rents for industrial segment.
Industry Concentration: Office As of December 31, 2022 2 Capital Goods 11.1 3 Health Care Equipment & Services 10.5 4 Food, Beverage & Tobacco 8.7 5 Utilities 8.4 6 Consumer Services 8.2 7 Diversified Financials 6.6 8 E-Commerce 6.0 9 Energy 6.0 10 Commercial & Professional Services 5.6 Top 10 total 83.0 % All others 17.0 % 36 2 Soft Drinks 8.7 3 Health Care Services 6.9 4 Renewable Electricity 6.9 5 Investment Banking & Brokerage 6.5 6 Copper 6.0 7 Internet & Direct Marketing Retail 6.0 8 Commercial & Professional Services 5.6 9 Integrated Telecommunication Services 4.5 10 Hotels, Resorts & Cruise Lines 4.4 11 Oil & Gas Equipment & Services 4.2 12 Casinos & Gaming 3.8 13 Paper Packaging 3.8 14 Semiconductors 2.5 15 Technology Distributors 2.4 16 Pharmaceuticals 2.4 17 Fertilizers & Agricultural Chemicals 2.2 18 Technology Hardware, Storage & Peripherals 2.0 19 Oil & Gas Exploration & Production 1.8 20 Home Improvement Retail 1.7 Top 20 total 93.4 All others 6.6 % Top 10 Industries Top 20 Sub-Industries Industry % of Annualized Base Rents1 Sub-Industry % of Annualized Base Rents1 1 Materials 11.9 % 1 Aerospace & Defense 11.1 % 1 Based on annualized base rents for office segment.
Geographic Distribution (% of Annualized Base Rents1) Market Concentration: Consolidated As of December 31, 2022 (USD in thousands) Top 10 Markets (% of Annualized Base Rents) Markets Annualized Base Rents % of Annualized Base Rents1 1 Phoenix $ 22,069 9.9 % 2 Northern New Jersey 18,862 8.4 3 Boston 16,673 7.4 4 Denver 13,758 6.1 5 Houston 13,593 6.1 6 Charlotte 12,039 5.4 7 Birmingham 9,043 4.0 8 Chicago 8,764 3.9 9 Columbus 8,729 3.9 10 Washington, DC 7,861 3.5 Top 10 total $ 131,391 58.6 % 9.9% 36 8.4% 8.1% 7.4% 7.3% 7.2% 5.8% 5.3% 5.0% 4.6% 31.0% Arizona New Jersey Texas Massachusetts California Colorado Ohio South Carolina Alabama Virginia All Others 1 Based on annualized base rents for wholly owned portfolio.
Geographic Distribution (% of Annualized Base Rents1) Market Concentration: Industrial and Office As of December 31, 2022 (USD in thousands) Top 10 Markets (% of Annualized Base Rents) Markets Annualized Base Rents % of Annualized Base Rents1 1 Phoenix $ 19,345 10.5 % 2 Boston 16,673 9.1 3 Denver 10,436 5.7 4 Northern New Jersey 9,913 5.4 5 Birmingham 9,043 4.9 6 Chicago 8,764 4.8 7 Charlotte 8,552 4.6 8 Washington, DC 7,861 4.3 9 Columbus 7,557 4.1 10 Stockton/Modesto 7,340 4.0 Top 10 total $ 105,484 57.4 % 10.5% 36 9.1% 8.9% 6.9% 6.4% 5.6% 5.6% 5.5% 5.4% 4.9% 31.1% Arizona Massachusetts California Colorado South Carolina Virginia Ohio Texas New Jersey Alabama All Others 1 Based on annualized base rents for the industrial and office segments.
Geographic Distribution (% of Annualized Base Rents1) Market Concentration: Industrial As of December 31, 2022 (USD in thousands) Markets Top 10 Markets (% of Annualized Base Rents) Annualized Base Rents % of Annualized Base Rents1 1 Chicago $ 8,764 17.0 % 2 Columbus 7,557 14.0 3 Stockton/Modesto 7,340 14.0 4 Jacksonville 4,054 8.0 5 Savannah 3,335 6.0 6 Tampa 3,143 6.0 7 Detroit 3,019 6.0 8 Cleveland 2,662 5.0 9 Hampton Roads 2,513 5.0 10 Orange County 2,201 4.0 Top 10 total $ 44,588 85.0 % 19.4% 36 18.2% 16.7% 13.7% 6.3% 6.3% 5.7% 4.8% 3.6% 2.1% 3.2% Ohio California Illinois Florida Georgia South Carolina Michigan Virginia North Carolina New Jersey All Others 1 Based on annualized base rents for industrial segment.
Geographic Distribution (% of Annualized Base Rents1) Market Concentration: Office As of December 31, 2022 (USD in thousands) Top 10 Markets (% of Annualized Base Rents) Markets Annualized Base Rents % of Annualized Base Rents1 1 Phoenix $ 19,345 15.0 % 2 Boston 16,673 13.0 3 Denver 10,436 8.0 4 Birmingham 9,043 7.0 5 Northern New Jersey 8,822 7.0 6 Charlotte 8,552 7.0 7 Washington, DC 7,861 6.0 8 San Diego 6,909 5.0 9 Houston 5,544 4.0 10 Las Vegas 5,041 4.0 Top 10 total $ 98,226 76.0 % 14.7% 12.7% 9.7% 1 Based on annualized base rents for office segment. 48 7.7% 6.9% 6.7% 6.5% 6.0% 5.3% 4.9% Arizona Massachusetts Colorado Texas Alabama New Jersey South Carolina Virginia California Tennessee
Lease Expirations: Consolidated As of December 31, 2022 (USD in thousands) 1 Based on annualized base rents for wholly owned portfolio. 2 Vacant square footage includes three properties. $24,003 $9,242 $12,567 $14,179 $20,990 $33,887 $25,786 $19,322 $6,583 2023 2024 2025 2026 2027 2028 2029 2030 2031 >2032 >2032 7 12 1 20 5,223,800 57,383 25.8 Vacant 2 — — — — 896,600 — — Totals 21 42 24 87 19,887,100 3 $ 223,942 100.0% Lease Maturity Schedule (by Annualized Base Rents) $57,383 3 Excludes approximately 2K of SF related to cafes. 49 Expiring Leases Year Industrial Office Other Total Approx. Square Feet Annualized Base Rents % of Annualized Base Rents1 2023 1 1 1 3 746,600 $ 6,583 2.9% 2024 1 1 9 11 2,357,400 24,003 10.7 2025 1 3 3 7 869,400 9,242 4.1 2026 1 2 1 4 1,449,100 12,567 5.6 2027 — 7 — 7 570,700 14,179 6.3 2028 6 3 5 14 2,233,700 20,990 9.4 2029 1 6 1 8 1,565,800 33,887 15.1 2030 1 3 3 7 2,385,100 25,786 11.5 2031 2 4 — 6 1,588,900 19,322 8.6
Lease Expirations: Industrial and Office As of December 31, 2022 (USD in thousands) Lease Maturity Schedule (by Annualized Base Rents) $4,473 $5,036 $4,583 $9,974 2023 2024 2025 2026 2027 2028 2029 2030 2031 >2032 1 Based on annualized base rents for the industrial and office segments. 50 $14,179 $18,266 $26,622 $24,404 $19,322 $57,081 Expiring Leases Year Industrial Office Approx. Square Feet Annualized Base Rents % of Annualized Base Rents1 2023 1 1 626,600 $ 4,473 2.4% 2024 1 1 875,700 5,036 2.7% 2025 1 3 304,700 4,583 2.5% 2026 1 2 1,338,800 9,974 5.4% 2027 — 7 570,700 14,179 7.7% 2028 6 3 1,958,400 18,266 9.9% 2029 1 6 1,316,400 26,622 14.5% 2030 1 3 2,311,700 24,404 13.3% 2031 2 4 1,588,900 19,322 10.5% >2032 7 12 5,199,100 57,081 31.0% Vacant
1 — — 11,500 — — Totals 21 42 16,102,500 $ 183,940 100.0%
Lease Expirations: Industrial As of December 31, 2022 (USD in thousands) Lease Maturity Schedule (by Annualized Base Rents) $2,161 51 $4,054 $1,354 $4,902 $— $10,613 $1,482 $7,340 $8,451 $12,196 2025 2026 2027 2028 2029 2030 2031 >2032 Expiring Leases Year Leases Approx. Square Feet Annualized Base Rents % of Annualized Base Rents1 2023 1 566,600 $ 2,161 4.1 % 2024 1 817,700 4,054 7.7 % 2025 1 120,000 1,354 2.6 % 2026 1 978,100 4,902 9.3 % 2027 — — — — % 2028 6 1,486,000 10,613 20.2 % 2029 1 312,000 1,482 2.8 % 2030 1 1,501,400 7,340 14.0 % 2031 2 1,039,200 8,451 16.1 % >2032 7 2,829,000 12,196 23.2 % Vacant — — — — % Totals 21 9,650,000 $ 52,553 100.0 % 2023 2024 1 Based on annualized base rents for industrial segment.
Lease Expirations: Office As of December 31, 2022 (USD in thousands) Lease Maturity Schedule (by Annualized Base Rents) $2,312 52 $982 $3,229 $5,072 $14,179 $7,653 $25,140 $17,064 $10,871 $44,885 2025 2026 2027 2028 2029 2030 2031 >2032 Expiring Leases Year Leases Approx. Square Feet Annualized Base Rents % of Annualized Base Rents1 2023 1 60,000 $ 2,312 1.8 % 2024 1 58,000 982 0.7 % 2025 3 184,700 3,229 2.5 % 2026 2 360,700 5,072 3.9 % 2027 7 570,700 14,179 10.8 % 2028 3 472,400 7,653 5.8 % 2029 6 1,004,400 25,140 19.1 % 2030 3 810,300 17,064 13.0 % 2031 4 549,700 10,871 8.3 % >2032 12 2,370,100 44,885 34.1 % Vacant — 11,500 — — % Totals 42 6,452,500 $ 131,387 100.0 % 2023 2024 1 Based on annualized base rents for office segment.
Portfolio Concentrations: Other As of December 31, 2022 (USD in thousands) Lease Maturity Schedule (by Annualized Base Rents1) $18,967 $4,659 $2,593 $— $2,724 $7,265 $1,382 $— $302 2026 2027 2028 2029 2030 2031 >2032 2024 9 1,481,700 18,967 47.4 2025 3 564,700 4,659 11.6 2026 1 110,300 2,593 6.5 2027 — — — — 2028 5 275,300 2,724 6.8 2029 1 249,400 7,265 18.2 2030 3 73,400 1,382 3.5 2031 — — — — >2032 1 24,700 302 0.7 Vacant
— 885,000 — — Totals 24 3,784,500 $ 40,002 100.0 % 52 Expiring Leases Year Total Approx. Square Feet Annualized Base Rents % of Annualized Base Rents1 2023 1 120,000 $ 2,110 5.3 % $2,110 2023 2024 2025 1
Based on annualized base rents by expiring leases for other segment.
Geographic Distribution (% of Annualized Base Rents1) Portfolio Concentrations: Other (continued) As of December 31, 2022 (USD in thousands) Top 10 Markets (% of Annualized Base Rents) Markets Annualized Base Rents % of Annualized Base Rents1 1 Northern New Jersey $ 8,949 22.4 % 2 Houston 8,049 20.1 3 Charlotte 3,487 8.7 4 Denver 3,322 8.3 5 Jefferson City 2,798 7.0 6 Phoenix 2,724 6.8 7 Baltimore 2,593 6.5 8 Las Vegas 2,417 6.0 9 Huntsville 2,110 5.3 10 Dayton 1,632 4.1 Top 10 total $ 38,081 95.2 % 22.4% 52 20.1% 8.7% 8.3% 7.0% 7.0% 6.8% 6.5% 6.0% 5.3% New Jersey Texas North Carolina Colorado Ohio Missouri Arizona Maryland Nevada Alabama 1 Based on annualized base rents for other segment.
Notes & Definitions
Notes & Definitions ABR (Annualized Base Rents) 56 “Annualized base rents” or “ABR” means the contractual base rent before abatements and deducting base year operating expenses for gross and modified gross leases as of December 31, 2022, unless otherwise specified, multiplied by 12 months. For properties in our portfolio that had rent abatements as of December 31, 2022, we used the monthly contractual base rent payable following expiration of the abatement. Adjusted EBITDA Adjusted EBITDA means an amount, as defined in the Company's credit facility agreement, derived from (a) net income before (b) interest, taxes, depreciation and amortization (EBITDA), plus (c) acquisition fees and expenses, (d) asset and property management fees, (e) straight-line rents and in-place lease amortization for the period, further adjusted for (f) acquisitions that have closed during the period, (g) certain reserves for capital expenditures, and (f) excluding activity relating to any partnership to the extent we are not a general partner and to the extent we are not liable for the associated indebtedness. EBITDA EBITDAre Earnings before interest, tax, depreciation and amortization. The National Association of Real Estate Investment Trusts ("NAREIT") has defined EBITDAre as follows: (a) GAAP Net Income plus (b) interest expense plus (c) income tax expense plus (d) depreciation and amortization plus/minus (e) losses and gains on the disposition of depreciated property, including losses/gains on change of control plus (f) impairment write-downs of depreciated property and of investments in unconsolidated affiliates caused by a decrease in value of depreciated property in the affiliate. Adjustments to reflect the entity's share of EBITDAre of consolidated affiliates. Normalized EBITDAre We use Normalized EBITDAre as a non-GAAP supplemental performance measure to evaluate the operating performance of the Company. Normalized EBITDAre, as defined by the Company, represents EBITDAre (as defined by NAREIT), modified to exclude nonroutine items such as acquisition-related expenses, employee separation expenses and other non-routine costs. Normalized EBITDAre also omits the Normalized EBITDAre impact of properties sold during the period and extrapolate the operations of acquired properties to estimate a full quarter of ownership. We may also exclude the annualizing of large transaction items such as termination income recognized during the quarter. Management believes these adjustments to reconcile to Normalized EBITDAre provides investors with supplemental performance information that is consistent with the performance models and analysis used by management, and provides investors a view of the performance of our portfolio over time. Therefore, Normalized EBITDAre should not be considered as an alternative to net income, as computed in accordance with GAAP. Normalized EBITDAre may not be comparable to similarly titled measures of other companies. Economic Occupancy Leases effective as of the reporting date. Fixed Charge Coverage Adjusted EBITDA annualized divided by sum of principal paid and due, interest expense, and cash dividends on preferred stock.
Notes & Definitions (continued) 56 Funds from Operations ("FFO") and Adjusted Funds from Operations ("AFFO") Our reported results are presented in accordance with GAAP. We also disclose FFO and AFFO both of which are non-GAAP financial measures. We believe these two non-GAAP financial measures are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of REITs. We compute FFO in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”). FFO is defined as net income or loss computed in accordance with GAAP, excluding extraordinary items, as defined by GAAP, and gains and losses from sales of depreciable real estate assets, adding back impairment write-downs of depreciable real estate assets, plus real estate related depreciation and amortization (excluding amortization of deferred financing costs and depreciation of non-real estate assets), and after adjustment for unconsolidated partnerships, joint ventures and preferred distributions. Because FFO calculations exclude such items as depreciation and amortization of depreciable real estate assets and gains and losses from sales of depreciable real estate assets (which can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates), they facilitate comparisons of operating performance between periods and between other REITs. As a result, the Company believes that the use of FFO, together with the required GAAP presentations, provides a more complete understanding of the Company's performance relative to its competitors and a more informed and appropriate basis on which to make decisions involving operating, financing, and investing activities. It should be noted, however, that other REITs may not define FFO in accordance with the current NAREIT definition or may interpret the current NAREIT definition differently than the Company does, making comparisons less meaningful. Additionally, the Company uses AFFO as a non-GAAP financial measure to evaluate the Company's operating performance. AFFO excludes non-routine and certain non-cash items such as revenues in excess of cash received, amortization of share-based compensation net, deferred rent, amortization of in-place lease valuation, acquisition-related costs, financed termination fee, net of payments received, gain or loss from the extinguishment of debt, [unrealized gains (losses) on derivative instruments,] write-off transaction costs and other one-time transactions. FFO and AFFO have been revised to include amounts available to both common shareholders and limited partners for all periods presented. AFFO is a measure used among the Company's peer group. The Company also believes that AFFO is a recognized measure of sustainable operating performance by the REIT industry. Further, the Company believes AFFO is useful in comparing the sustainability of its operating performance with the sustainability of the operating performance of other real estate companies.
Notes & Definitions (continued) Funds from Operations ("FFO") and Adjusted Funds from Operations ("AFFO") - cont. 56 Management believes that AFFO is a beneficial indicator of its ongoing portfolio performance and ability to sustain its current distribution level. More specifically, AFFO isolates the financial results of the Company's operations. AFFO, however, is not considered an appropriate measure of historical earnings as it excludes certain significant costs that are otherwise included in reported earnings. Further, since the measure is based on historical financial information, AFFO for the period presented may not be indicative of future results or the Company's future ability to make or sustain distributions. By providing FFO and AFFO, the Company presents information that assists investors in aligning their analysis with management’s analysis of long-term operating activities. For all of these reasons, the Company believes the non-GAAP measures of FFO and AFFO, in addition to net income (loss) are helpful supplemental performance measures and useful to investors in evaluating the performance of the Company's real estate portfolio. However, a material limitation associated with FFO and AFFO is that they are not indicative of the Company's cash available to fund distributions since other uses of cash, such as capital expenditures at the Company's properties and principal payments of debt, are not deducted when calculating FFO and AFFO. The use of AFFO as a measure of long-term operating performance on value is also limited if the Company does not continue to operate under its current business plan as noted above. FFO and AFFO should not be viewed as a more prominent measure of performance than net income (loss) and each should be reviewed in connection with GAAP measurements. Neither the SEC, NAREIT, nor any other applicable regulatory body has opined on the acceptability of the adjustments contemplated to adjust FFO in order to calculate AFFO and its use as a non-GAAP performance measure. In the future, NAREIT may decide to standardize the allowable exclusions across the REIT industry, and the Company may have to adjust the calculation and characterization of this non-GAAP measure. Investment Grade NAV Investment grade companies means companies (e.g., a tenant or a guarantor or non-guarantor parent of a tenant) that have received an investment grade credit rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a company with a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO investment grade rating; management can provide no assurance as to the comparability of these ratings methodologies or that any particular rating for a company is indicative of the rating that a single NRSRO would provide in the event that it rated all companies for which the Company provides credit ratings; to the extent such companies are rated only by non-NRSRO ratings providers, such ratings providers may use methodologies that are different and less rigorous than those applied by NRSROs; moreover, because PKST provides credit ratings for some companies that are non-guarantor parents of Company's tenants, such credit ratings may not be indicative of the creditworthiness of the relevant tenants. Net asset value. This represents the fair value of our assets less liabilities divided by total shares and OP units outstanding. Net Debt Total debt less cash and cash equivalents (excluding restricted cash). Net Debt (pro rata share) Total debt plus unconsolidated debt (pro rata share), less cash and cash equivalents (excluding restricted cash). Net Rent Net rent is based on (a) the contractual base rental payments assuming the lease requires the tenant to reimburse us for certain operating expenses or the property is self-managed by the tenant and the tenant is responsible for all, or substantially all, of the operating expenses; or (b) contractual rent payments less certain operating expenses that are our responsibility for the 12-month period subsequent to December 31, 2022 and includes assumptions that may not be indicative of the actual future performance of a property, including the assumption that the tenant will perform its obligations under its lease agreement during the next 12 months.
Notes & Definitions (continued) Store Cash NOI Net Operating Income (NOI), Cash NOI, and Same NOI is a non-GAAP measure which includes the revenue and expense directly attributable to our real estate properties. NOI is calculated as total revenue from real estate operations less property expenses, which includes operating property expenses, property tax expenses and management fees. Net operating income on a cash basis (“Cash NOI”) is net operating income adjusted to exclude the effect of straight-line rent and amortization of acquired above- and below- market lease intangibles adjustments required by GAAP. Net operating income on a cash basis for our Same-Store portfolio (“Same-Store Cash NOI”) is Cash NOI for properties held for the entirety of all periods presented. We believe that NOI, Cash NOI and Same-Store Cash NOI are helpful to investors as additional measures of operating performance because we believe they help both investors and management to understand the core operations of our properties excluding corporate and financing-related costs and non-cash depreciation and amortization. NOI, Cash NOI and Same-Store Cash NOI are unlevered operating performance metrics of our properties and allow for a useful comparison of the operating performance of individual assets or groups of assets. These measures thereby provide an operating perspective not immediately apparent from GAAP income from operations or net income. In addition, NOI, Cash NOI and Same-Store Cash NOI are considered by many in the real estate industry to be useful starting points for determining the value of a real estate asset or group of assets. The table below represents a reconciliation of NOI to Cash NOI for the interim periods presented in the "Selected Financial Data" on page 9. 9/30/2022 For the Quarter Ended 6/30/2022 3/31/2022 (Unaudited, USD in thousands) Industrial Office Other Total Portfolio Industrial Office Other Total Portfolio Industrial Office Other Total Portfolio Revenue $ 15,095 $ 72,128 $ 14,107 $ 101,330 $ 14,807 $ 93,494 $ 14,772 $ 123,073 $ 15,500 $ 85,846 $ 14,843 $ 116,189 Operating Property Expense (638) (10,301) (2,777) (13,716) (602) (11,377) (2,356) (14,335) (996) (11,451) (2,596) (15,043) Property Tax Expense (1,005) (1,031) Management Fees (Non-Affiliate) (63) (6,906) (1,826) (9,737) (547) (213) (823) (63) (8,578) (1,873) (11,482) (746) (236) (1,045) (1,028) (7,159) (1,846) (10,033) (63) (743) (233) (1,039) TOTAL NOI 13,389 54,374 9,291 77,054 13,111 72,793 10,307 96,211 13,413 66,493 10,168 90,074 NON-CASH ADJUSTMENTS: Straight Line Rent (456) (2,239) (68) (2,763) (211) (2,666) 245 (2,632) (215) (2,518) 192 (2,541) In-Place Lease Amortization (87) (220) (129) (436) (102) (213) (117) (432) (86) (211) (116) (413) Deferred Termination Income — — (758) (758) — — (758) (758) — — 4 4 Deferred Ground Lease — 490 — 490 — 510 1 511 — 512 (758) (246) Other Intangible Amortization — Inducement Amortization 377 — 377 — — — — — 372 — 372 — 107 — 107 — 368 — 368 — (107) — (107) TOTAL CASH NOI $ 12,846 $ 52,782 $ 8,336 $ 73,964 $ 12,798 $ 70,903 $ 9,678 $ 93,379 $ 13,112 $ 64,537 $ 9,490 $ 87,139 56
Notes & Definitions (continued) Operating Margin 56 NOI/Revenue. Real Estate Net Book Value Real Estate Net Book Value represents total real estate and intangible assets, net of accumulated depreciation and amortization and intangible liabilities. Same Store Same store portfolio includes properties which were held for a full period compared to the same period in the prior year. Total Enterprise Value (TEV) Total Enterprise Value includes the outstanding debt balance (excluding deferred financing costs and premium/discounts), plus unconsolidated debt - pro rata share, plus preferred equity, plus total outstanding shares multiplied by the NAV, less cash and cash equivalents - excludes restricted cash. Total outstanding shares includes limited partnership units issued and shares issued pursuant to the DRP, net of redemptions. Unencumbered Assets Unencumbered Assets are properties not secured by a mortgage debt or included in our revolver's borrowing base calculation. Unsecured Leverage Ratio Unsecured debt divided by Total Enterprise Value (TEV). WALT Weighted average lease term (in years). This is the average remaining lease term for all leases combined, weighted based on Annualized Base Rents.
Disclaimer 56 Disclaimer on Forward-Looking Statements This document contains statements that constitute forward-looking statements within the meaning of 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; the impact of the work-from-home trends; recent and ongoing disruption in the debt and banking markets; occupancy, rent deferrals and the financial condition of the Company’s tenants; whether easing of the pandemic, 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; expected sources of financing and the availability and attractiveness of the terms of any such financing; legislative and regulatory changes that could adversely affect our business; our future capital expenditures, operating expenses, net income, operating income, cash flow and developments and trends of the real estate industry; whether a listing of the Company will be completed; whether any such listing will maximize shareholder value; whether we will be successful in the pursuit of our business plan, including any dispositions; whether we will succeed in our investment objectives; any relationship between the trading price of our common shares at listing and our published net asset value; any fluctuation and/or volatility of the trading price of our common shares once listed; risks associated with our dependence on key personnel whose continued service is not guaranteed; risks related to the disruption of management’s attention from ongoing business operations due to pursuit of requirements related to being a listed company; whether we will comply with Sarbanes-Oxley as required of listed companies; and other factors, including those risks disclosed in Part I, Item 1A. “Risk Factors” and Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the Company’s most recent Annual Report on Form 10-K and Part I, Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the Company’s Quarterly Reports on Form 10-Q filed with the U.S. Securities and Exchange Commission. The Company cautions investors not to place undue reliance on these forward-looking statements and urges you to carefully review the disclosures it makes concerning risks. While forward-looking statements reflect the Company’s 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. Furthermore, the Company disclaims 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.
Exhibit 99.3
Investor Presentation March 2023
Disclaimer / Forward-Looking Disclosure This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. 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 the Company’s current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause the Company’s 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; the impact of the work-from-home trends; recent and ongoing disruption in the debt and banking markets; occupancy, rent deferrals and the financial condition of the Company’s tenants; whether easing of the pandemic, 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; expected sources of financing and the availability and attractiveness of the terms of any such financing; legislative and regulatory changes that could adversely affect our business; our future capital expenditures, operating expenses, net income, operating income, cash flow and developments and trends of the real estate industry; whether a listing of the Company will be completed; whether any such listing will maximize shareholder value; whether we will be successful in the pursuit of our business plan, including any dispositions; whether we will succeed in our investment objectives; any relationship between the trading price of our common shares at listing and our published net asset value; any fluctuation and/or volatility of the trading price of our common shares once listed; risks associated with our dependence on key personnel whose continued service is not guaranteed; risks related to the disruption of management’s attention from ongoing business operations due to pursuit of requirements related to being a listed company; whether we will comply with Sarbanes-Oxley as required of listed companies; and other factors, including those risks disclosed in Part I, Item 1A. “Risk Factors” and Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the Company’s most recent Annual Report on Form 10-K and Part I, Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the Company’s Quarterly Reports on Form 10-Q filed with the U.S. Securities and Exchange Commission. The Company cautions investors not to place undue reliance on these forward-looking statements and urges you to carefully review the disclosures it makes concerning risks. While forward-looking statements reflect the Company’s 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. Furthermore, the Company disclaims 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. Our shareholders are cautioned not to place undue reliance on any forward-looking statement in this document. All forward-looking statements are made as of the date of this document, and the risk that actual results will differ materially from the expectations expressed in this document may increase with the passage of time. In light of the significant uncertainties inherent in the forward-looking statements in this document, the inclusion of such forward-looking statements should not be regarded as a representation by us or any other person that the objectives and plans set forth in this document will be achieved.
Today’s Presenters MICHAEL ESCALANTE CHIEF EXECUTIVE OFFICER & PRESIDENT JAVIER BITAR CHIEF FINANCIAL OFFICER & TREASURER MAX KAMINSKY SENIOR VICE PRESIDENT, CAPITAL TRANSACTIONS 1
Table of Contents III. A Deeper Dive More About Our Industrial and Office Segments Value Creation Capabilities Capitalization Overview RH – Patterson, CA PepsiCo – Lakeland, FL TransDigm – Whippany, NJ Listing Summary Peakstone Overview 01• 03• 02• 2
Company Name Peakstone Realty Trust (previously Griffin Realty Trust) Company Type Net Lease Industrial and Office REIT Exchange / Stock Symbol NYSE: PKST Expected Listing Date (Listing of existing common stock) April 13, 2023 Common Stock and OP Units Outstanding 39.5mm1,2 Annualized Distribution (Next distribution record date: May 2, 2023) $0.90 per share1 3 Listing Summary As adjusted for the 1-for-9 reverse stock split announced on March 10, 2023. Includes 36.0mm common stock and 3.5mm OP units outstanding as of December 31, 2022.
Listing Best Positions the Company for Future Growth and Provides Liquidity for Shareholders ZF WABCO – North Charleston, SC Access to Additional Sources of Capital in the Longer-Term Opportunity for Liquidity for Existing Shareholders Attractive Investment Opportunity for Investors Retain Embedded Upside in the Portfolio Keurig Dr. Pepper – Boston, MA Samsonite – Jacksonville, FL 3M – Dekalb, IL York – Greenwood Village, CO AT&T (3 Properties) – Redmond, WA 4
PEAKSTONE OVERVIEW
A Compelling Investment Opportunity Amazon – Pataskala, OH Experienced, cycle-tested team with strong financial alignment and a real estate operator’s mindset Self-funded business model through capital recycling and free cash flow Wholly-owned, high-quality, newer-vintage portfolio of predominantly single-tenant industrial and office properties located in diverse, strategic growth markets 01 LPL (2 Properties) – Fort Mill, SC Shaw Industries – Savannah, GA 02 03 5
Wholly-Owned Portfolio Provides Durable Cash Flows with Built- in Long-Term Growth Prospects Notes: $ in millions. Data is for wholly-owned assets as of December 31, 2022 adjusted to reflect property sales through March 23, 2023. See detailed property lists for Office, Industrial and Other Segments in the Appendix. LQA Cash NOI is net of carrying costs for vacant assets. Weighted average based on ABR. Based on Rentable Square Feet. Property Count Rentable Sq. Ft (mm) In-Place ABR (mm) LQA Cash NOI (mm)1 WALT (years)2 % Leased3 % Leased to IG Tenants2 Office JV $179mm Book Value of Equity ~49% Minority Interest 46 Office Properties (59 Buildings) 8.6mm Rentable Sq. Ft 6 Wholly-Owned Total 78 19.0 $211.7 $189.8 7.1 95% 61% Industrial Segment 19 9.0 $48.2 / 23% $48.6 / 26% 7.1 100% 59% High-quality, well-located industrial properties with modern specifications Office Segment 38 6.2 $123.5 / 58% $106.7 / 56% 8.4 100% 67% Newer, high-quality, business-essential office properties Other Segment (Office & Industrial) 21 3.8 $40.0 / 19% $34.5 / 18% 3.1 77% 47% Vacant and non-core assets (together with other assets in the same cross-collateralized loan pools)
High-Quality, Well-Located Industrial and Office Segment Properties Notes: Data is for wholly-owned assets as of December 31, 2022 adjusted to reflect property sales through March 23, 2023. Industrial Office / Data Center Arizona Avnet Freeport McMoRan McKesson onsemi AT&T (3 Properties) RH Guild Mortgage IGT Occidental Petroleum Maxar Technologies York Hopkins Corteva Agriscience MISO International Paper 3M Amazon Berry Global Illinois Atlas Copco OceanX Roush Amcor Amazon PPG Express Scripts Huntington Ingalls (2 Properties) UEOS / Blue Force Pepsi Bottling LPL (2 Properties) ZF WABCO Shaw Industries Samsonite PepsiCo Parallon Amentum Fresenius Tech Data Wood Group Southern Company Draeger Medical Mercury Systems Rapiscan Systems Keurig Dr Pepper (2 Properties) Massachusetts TransDigm Travel & Leisure Zoetis New Jersey Fidelity Building Services JMT Maryland Toshiba TEC ABR <$1mm $1mm-$2mm $2mm-$4mm $4mm-$6mm >$6mm States 7 Markets of ABR from Coastal 23 33 74% & Sunbelt Markets 530 Great Circle Road Cigna
Entered JV with Workspace Property Trust and an institutional buyer Sold 46 office properties for significant cash proceeds De-levered balance sheet Eliminated future capex Closed Four Dispositions of Wholly- Owned Assets Since Q3 2022 $203mm of gross proceeds 7.1% weighted average NTM cash cap rate Extended $750mm Revolver Loan Maturity date extended through January 2026 Repaid $400mm 2024 term loan with revolver loan capacity Optimizing Portfolio and Balance Sheet Generate consistent cash flows Attract high demand from creditworthy tenants, minimizing vacancies Strong rental rate growth potential Selectively sell office assets No need for outside capital Invest capital in existing assets where warranted Target investment grade balance sheet Potential for higher returns with lower capex Strong rental rate growth prospects Robust demand, low vacancy and lagging supply Benefit from secular tailwinds with mark- to-market opportunities Go-Forward Strategy Executed Maintain a Stabilized Portfolio of High- Quality, Well- Located Real Estate Self-Funded Ability to Execute Plan Build Upon Existing Portfolio by Selectively Acquiring High- Quality Industrial Properties Today Redeem $125mm preferred shares Potential savings of $10mm in distributions per year1 Potentially Redeem Convertible Preferred Shares (1) Based on a current annual distribution rate of 8.05% as of December 31, 2022. Listing Interim 8
Primary Long-Term Objective to Maximize Shareholder Value Over Time 03 05 01 04 02 Future focus on acquiring distribution / warehouse assets with market leading building specifications Maximize flexibility by targeting investment grade rating Improve per share metrics through internal and external growth Selectively own business essential, Class A, single-tenant office with long lease durations Multi-channel investment strategy across the risk and capital spectrum 9
Entrepreneurial & Cycle-Tested Team with Proven Public Real Estate Operating Experience CAPITAL MARKETS ASSET MANAGEMENT LEASING ACCOUNTING & FINANCE ACQUISITIONS & DEVELOPMENT Peakstone Management Team Overview Highly experienced executive management team1 Average ~34 years of real estate experience Decades of experience operating public companies 9 senior real estate professionals averaging ~23 years of experience2 Average ~9 years working together3 Proven real estate and capital markets experience Extensive knowledge of the existing portfolio Broad network of long-standing industry relationships 10 Includes Michael Escalante (CEO), Javier Bitar (CFO) and Nina Momtazee Sitzer (General Counsel, Chief Administrative Officer and Secretary). Includes Senior Vice President and above, other than executive management team. Includes Senior Vice President and above.
A DEEPER DIVE 01 More About Our Industrial and Office Segments 02 Value Creation Capabilities 03 Capitalization Overview
More About Our Industrial and Office Segments 01
MISO – Carmel, IN Pepsi Bottling Ventures – Winston-Salem, NC Essential to Tenant Operations Modern, High-Quality Buildings with Market-Leading Specifications Significant Tenant Investment Difficult-to-Replicate Locations or High-Growth Markets PepsiCo – Lakeland, FL 01 Strategically Located and Critical to the Business Operations of Tenants Roush Industries – Allen Park, MI 11
Phoenix 16% Boston 13% Denver 8% Birmingham 7% Northern New Jersey 7% Charlotte 7% San Diego 6% Houston 4% Las Vegas 4% Memphis 4% Other 24% Chicago 18% Columbus 16% Stockton/ Modesto 15% Jacksonville 8% Savannah 7% Tampa 7% Detroit 6% Cleveland 6% Hampton Roads 5% 8% Notes: Data is for wholly-owned assets as of December 31, 2022 adjusted to reflect property sales through March 23, 2023. Industrial Segment Markets by % of Segment ABR Winston-Salem 4% Other Office Segment Markets by % of Segment ABR 01 Industrial and Office Segments Well-Positioned and Diversified Across High-Growth Markets 12
Top 10 Office Tenants Rating WALT (yrs.) % of Segment ABR 1 AA 8.6 18% 1 BBB 6.9 9% 2 Ba3 7.7 15% 2 BBB+ 21.2 7% 3 A+ 3.8 10% 3 Baa3 13.8 7% 4 Ba2 1.9 8% 4 Baa2 4.4 6% 5 AA 10.3 7% 5 B+ 7.5 6% 6 A+ 5.6 7% 6 BBB+ 5.8 5% 7 BBB 9.8 6% 7 BB- 6.7 5% 8 BBB- 5.0 5% 8 HY6 11.0 4% 9 A3 9.6 4% 9 BB+ 8.0 4% 10 NR 5.9 3% 10 BBB 7.0+ 4% Top
10 Subtotal / Average2 6.8 83% Top 10 Subtotal / Average2 9.6 57% Top 10 Industrial Tenants Rating WALT \(yrs.\) % of Segment ABR Capital Goods 23% E-Commerce 18% Consumer Durables & Apparel 15% Retailing 15% Food, Beverage &
Tobacco 10% 3 Other Industries 19% Materials 13% Capital Goods 12% Health Care Equipment & Services 11% Food, Beverage & Tobacco 9% Utilities 9% 10 Other Industries 46% Peakstone Realty Trust has no affiliation, connection or
association with and is not sponsored or approved by the tenants of its properties. Peakstone Realty Trust has not approved or sponsored its tenants or their products and services. All product and company names, logos and slogans are the
trademarks or service marks of their respective owners. \(1\) Weighted average lease term calculated as a weighted average based on ABR. \(2\) Based on % of segment ABR. 13 % Leased to S&P 500 Companies: 49%2 % Leased to S&P 500
Companies: 54%2 Leased to High-Quality Tenants Diversified Across Industries 01 Top 5 Tenant Industries by % of Segment ABR Top 5 Tenant Industries by % of Segment ABR Industrial Segment Office Segment Notes: Data is for wholly-owned
assets as of December 31, 2022 adjusted to reflect property sales through March 23, 2023. Tenants ranked by ABR.
IG Rated 67% Sub-IG/Not- Rated 33% IG Rated 59% Sub-IG/Not- Rated 41% Notes: Data is for wholly-owned assets as of December 31, 2022 adjusted to reflect property sales through March 23, 2023. Industrial Segment Investment Grade Tenants by % of Segment ABR Office Segment Investment Grade Tenants by % of Segment ABR 01 Majority Investment Grade Tenancy 100% Rent Collections During COVID 14
8% 3% 10% 17% 3% 15% 18% 26% '23 '24 '25 '26 '27 '28 '29 '30 '31 '32 and
Thereafter 2% 1% 3% 4% 11% 6% 20% 14% 9% 30% '23 '24 '25 '26 '27 '28 '29 '30 '31 '32 and Thereafter 7.1 IndustrialSegment WALT\(yrs.\)1 Notes: Data is for wholly-owned assets as of December 31, 2022 adjusted to reflect
property sales through March 23, 2023. \(1\) Calculated as a weighted average based on ABR. 8.4 Office Segment WALT\(yrs.\)1 % Industrial Segment ABR Expiring Per Year % Office Segment ABR Expiring Per Year 01 Near-Term Stability with
Long-Term Ability to Capitalize on Opportunities 15
Notes: JLL Research as of March 10, 2023. PKST data is for wholly-owned assets as of December 31, 2022 adjusted to reflect property sales through March 23, 2023. PKST averages are weighted based on segment ABR, except for property size. All other stats based on % of segment ABR. Based on average property CoStar star rating on a scale from 1 (low) to 5 (high) for each portfolio. Represents distribution / warehouse assets only. Industrial peers include: BNL, EGP, FR, GOOD, ILPT, LXP, ONL, PLD, PLYM, REXR, STAG, TRNO and WPC. Average Age 26 years Peer Average3 13 years Average Clear Heights2 27 feet Peer Average3 32 feet WALT 7.0 years Peer Average3 7.1 years Average Property Size 177k SF Peer Average3 474k SF Investment Grade Tenants 59% Industrial Segment Portfolio 39% Peer Average3 01 Industrial Segment Portfolio Among the Highest Quality – Meets the Needs of Today’s Tenants % Properties Rated 4+ Stars (CoStar)1 47% Peer Average3 91% 16
Property Name Nearest Port Top 10 US Port Rank # 1 Miles to Port % of Segment ABR TransDigm Port Newark (Port of NY/NJ) 2 25 2% Shaw Industries Port of Savannah 4 11 7% Huntington Ingalls (500 W. Park Lane) Port of Virginia 6 23 3% Huntington Ingalls Port of Virginia 6 23 3% Total / Average 24 48% Port-Adjacent Industrial Segment Assets PepsiCo RH Samsonite Notes: Data is for wholly-owned assets as of December 31, 2022 adjusted to reflect property sales through March 23, 2023. Properties ranked by port ranking. (1) US Port Rank is based on Total 2022 Twenty-foot Equivalent Units (TEUs) per Supply Chain Dive published February 27, 2023. “N/A” indicates the rank falls outside of the Top 10. 01 48% of Industrial Segment ABR from Properties Proximate to Top US Ports Huntington Ingalls (2 Properties) ZF WABCO Shaw Industries Fidelity Building Services TransDigm (300 W. Park Lane) ZF WABCO Port of Charleston 8 16 2% RH Port of Oakland 9 38 15% Samsonite Port of Jacksonville 10 8 8% Fidelity Building Services Port of Baltimore N/A 21 1% PepsiCo Port Tampa Bay N/A 52 7% Distribution / Warehouse Property Ports 17
$5.35 $6.35 In-Place ABR PSF Market Average $48mm $57mm Total In-Place Market Average ABR Upside Potential: Notes: JLL Research as of December 31, 2022. PKST data is for wholly-owned assets as of December 31, 2022 adjusted to reflect property sales through March 23, 2023. Industrial Segment In-Place ABR PSF vs Market Rent PSF Significant Embedded Value Releasing Spreads at Current Market Rent Shaw Industries – Savannah, GA +61% RH – Patterson, CA +64% Industrial Segment Total In-Place ABR vs Market Rent 01 Significant Upside Through Industrial Segment Mark-to- Market Opportunity x 9.0mm SF 18
67% 163k SF 8.4 years 100% 78% 11 years Office Segment Portfolio Average Age 23 years Peer Average2 Average Property Size 105k SF Peer Average2 WALT 8.2 years Peer Average2 Investment Grade Tenants 45% Peer Average2 % Leased 96% Peer Average2 Notes: JLL Research as of March 10, 2023. PKST data is for wholly-owned assets as of December 31, 2022 adjusted to reflect property sales through March 23, 2023. PKST averages are weighted based on segment ABR, except for property size. All other stats based on % of segment ABR, except % leased which is based on Rentable Square Feet. (1) Based on average property CoStar star rating on a scale from 1 (low) to 5 (high) for each portfolio. 35% Peer Average2 % of Properties Rated 4+ Stars (CoStar)1 01 Office Segment Portfolio Newest Among Peer Group – A Key Determinant of Performance (2) Office peers include: BNL, GOOD, ONL, and WPC. 19
Mercury Systems – Andover, MA 11 21 24 23 22 PKST ONL BNL GOOD WPC Peer Avg: 23 Notes: JLL Research as of March 10, 2023. PKST data is for wholly-owned assets as of December 31, 2022 adjusted to reflect property sales through March 23, 2023. Based on average property CoStar star rating on a scale from 1 (low) to 5 (high) for each portfolio. Average age is defined as year built or most recent renovation. PKST average weighted based on segment ABR. onsemi – Scottsdale, AZ 78% 52% 45% 41% 1% PKST ONL GOOD WPC BNL Peer Avg: 35% JMT – Baltimore, MD Zoetis – Parsippany, NJ % of Properties Rated 4+ Stars (CoStar)1 Average Building Age (Yrs)2 41% of Office Segment ABR from Corporate Headquarters3 Freeport McMoRan– Phoenix, AZ Guild Mortgage – San Diego, CA 01 Newer, Higher-Quality, Business-Essential Office Segment Assets Should Require Lower Capex and Higher Valuations (3) Only selected tenant corporate headquarters are shown. 20
$95 $90 $81 $78 $70 Peakstone W.P. Carey Orion Gladstone 16% Broadstone 10% 19% 11% 20% 12% 27% 18% 30% 21% 26% 30% 32% 45% 51% Broadstone Gladstone W.P. Carey Orion Peakstone Notes: JLL Research as of March 10, 2023. PKST data is for wholly-owned assets as of December 31, 2022 adjusted to reflect property sales through March 23, 2023. Analysis pertains to five-mile radius surrounding office assets in each peer’s portfolio. Peakstone’s office markets include: Baltimore, Birmingham, Boston, Charlotte, Dallas/Fort Worth, Denver, Des Moines, Houston, Indianapolis, Las Vegas, Memphis, Nashville, Northern New Jersey, Phoenix, Pittsburgh, Platteville, Raleigh/Durham, San Antonio, San Diego, Seattle/Puget Median Household Income1, 2 (2022, $000s) 01 Office Segment Assets Located in Markets with Strong Demographic Trends Educational Attainment1, 2 (age 25+, 2022) Bachelors Masters Sound, Tampa and Tyler. 21
Value Creation Capabilities 02
Repositioning and Development Opportunities Corporate M&A Joint Ventures Signature REIT Cycle-tested team with insight, experience, relationships and creativity to source, structure, and execute on multiple transaction types Amazon – Arlington Heights, IL RH – Patterson, CA Proven Experience Executing Versatile Investment Strategies 02 Proactive Asset Management York – Greenwood Village, CO Property & Portfolio Acquisitions ✓ ✓ ✓ ✓ Tax Deferred Strategies Avnet – Chandler, AZ ✓ ✓ 22 Amazon – Pataskala, OH
Vacant Buildings 01 Park Meadows – Lone Tree, CO Raytheon - Charlotte, NC 02 Short-Term WALT Other Asset Attributes Other Segment Key Figures 21 Properties $40.0mm ABR 3.1 WALT (Years)2 18% / 82% Industrial / Office1 77% % Leased 3.8mm Rentable Square Feet Notes: $ in millions. As of December 31, 2022. Based on ABR. Weighted average based on ABR. Other Segment Debt Interest Maturity Outstanding # of Rate Date Balance Properties Highway 94 Loan 3.75% 2024 $13 1 Hitachi Astemo - Columbus, OH Franklin Center - Columbia, MD AIG Loan II 4.15% 2025 122 8 AIG Loan 4.96% 2029 100 5 03 Cross-Collateralized Assets 04 Partially Leased Total Other Segment Debt $235 14 02 Proactive Asset Management: An Overview of Other Segment Assets 23
Repositioning Generated significant value accretion through an early lease termination that provided proceeds for a strategic R&D-to-warehouse conversion Achieved credit and lease term enhancement with no downtime and no out-of-pocket capital investment Increased the rental rate PSF by 6.4% Amazon – Arlington Heights, IL 02 Team Has Proven Experience Identifying and Executing Value Creation Opportunities Redevelopment Partnered with the tenant to completely overhaul a building with outdated components and environmental issues Post-renovation, asset replicated new construction with modern technology well-below replacement cost for a building located in an upscale Birmingham submarket Closed on a 28-year lease with an investment grade tenant Southern Company – Birmingham, AL Formed a JV with a leading developer to construct a distribution warehouse for RH Financed over 90% of total construction costs and committed to a forward takeout Acquired a mission-critical warehouse for RH with a 15-year lease term Build-to-Suit / Joint Venture RH – Patterson, CA 24
Capitalization Overview 03
Notes: $ in millions. Represents the sales of Fox Head industrial property, Renfro industrial property and Amazon (South Lake at Dulles) office property in January 2023, February 2023 and March 2023, respectively. Represents the repayment of the $19mm HealthSpring loan on March 6, 2023. Also includes $25mm of estimated listing transaction costs. On March 21, 2023, the Company extended its $750mm revolver loan through January 31, 2026 (subject to completion of the listing of the Company’s common shares), and utilized available revolver capacity to repay the $400mm term loan due 2024. Assumes the Company’s outstanding preferred shares have been redeemed; such redemption has not occurred as of the date of this document. Adjusted for the repayment of the HealthSpring loan on March 6, 2023, extension of the revolver loan and repayment of the 2024 term loan. Including the effect of the interest rate swap agreements with a total notional amount of $750mm, the weighted average interest rate as of December 31, 2022 on term loans and outstanding revolver loan was 3.96%, based on a weighted average interest strike rate of 2.46% plus a spread of 1.40% and the market adjustment to SOFR of 0.1%. Cash and Cash Equivalents excludes restricted cash. Net Consolidated Debt is presented since PKST has no obligation to contribute capital to the unconsolidated joint venture and has no guarantee related to the debt of the unconsolidated joint venture. Share count includes 36.0mm common stock and 3.5mm OP units outstanding as of December 31, 2022. As adjusted for the 1-for-9 reverse stock split announced on March 10, 2023. Capitalization Overview Balance Sheet and Liquidity Overview 03 As of 1Q23 Asset Other Revolver Loan Adjusted Potential Redemption Pro Forma Following 12/31/2022 1 Sales 2 Adjustments Amendment3 12/31/2022 4 of Preferred Shares Pref. Redemption4 5 Rate 5 Term Secured Debt Secured Fixed Rate Mortgages $540 (19) $521 $521 4.43% 4.4 Total Secured Debt $540 $521 $521 Unsecured Debt 2024 Term Loan6 400 (400) - - -- -- 2025 Term Loan6 400 400 400 3.96% 3.0 2026 Term Loan6 150 150 150 3.96% 3.3 Revolver Loan ($750mm Commitment)3,6 - 400 400 400 3.96% 3.1 Total Unsecured Debt $950 $950 $950 Total Consolidated Debt $1,490 $1,471 $1,471 Cash and Cash Equivalents7 (233) (165) 44 (354) 125 (229) Net Consolidated Debt8 $1,257 $1,117 $1,242 Pro Rata Share of JV Debt 526 526 526 Net Debt (Pro Rata Share) $1,782 $1,642 $1,767 Perpetual Convertible Preferred Shares 125 125 (125) - Net Debt (Pro Rata Share) + Preferred Shares $1,907 $1,767 $1,767 Memo: Common Stock + OP Units Outstanding (mm) 9 39.5 39.5 39.5 Operating Metrics LQA Normalized EBITDAre 232 (13) 219 219 Leverage Metrics Net Debt (Pro Rata Share) / LQA Normalized EBITDAre Net Debt (Pro Rata Share) + Preferred Shares / LQA Normalized EBITDAre 7.7x 8.2x 7.5x 8.1x 8.1x 8.1x 25
Wholly-Owned Balance Sheet and Liquidity Overview (Cont’d) 03 Notes: $ in millions. Excludes pro rata share of JV debt. Reflects the repayment of the $19mm HealthSpring loan on March 6, 2023, the extension of the revolver loan through January 31, 2026, the repayment of the $400mm term loan due 2024 with available revolver capacity and the potential redemption of $125mm of perpetual convertible preferred shares. Reflects cash and cash equivalents as of December 31, 2022, adjusted for proceeds from 1Q23 asset sales, the repayment of the $19mm HealthSpring loan, $25mm of estimated listing transaction costs and the potential redemption of $125mm of perpetual convertible preferred shares. Represents the December 31, 2022 remaining available capacity of $203mm, adjusted for the impact from 1Q23 asset sales and additional available capacity from currently unencumbered assets. Percentage of floating-rate debt includes impact of fixed-rate swaps. Consolidated Debt Maturity at Listing1 Other Balance Sheet Highlights at Listing1 Wtd. Avg. Interest Rate: 4.1% Net Consolidated Debt / Total Gross Real • Total Liquidity: $469mm Estate: 36% Pro Forma Cash and Cash Equivalents: $229mm2 Remaining Revolver Capacity: $240mm3 Unsecured Secured Fixed Floating4 86% 14% Total Consolidated Debt: $1,471 35% 65% $1,471 Total Consolidated Debt: $18 $31 $122 $250 $100 $400 $150 $400 $350 2023 2024 2025 2026 2027 2028 2029 Fixed Rate Mortgages Revolver Loan Term Loans Remaining Revolver Commitment 26
Wholly-Owned LQA Cash NOI1 Balance Sheet Components Cash & Restricted Cash2 $ 234 Book Value of Office JV $ 179 Other Assets $ 75 Building Blocks of Net Asset Value 03 Notes: $ in millions. As of December 31, 2022 as adjusted for 1Q23 asset sales. LQA Cash NOI is net of carrying costs for vacant assets. Reflects cash and cash equivalents as of December 31, 2022, adjusted for proceeds from 1Q23 asset sales, the repayment of the $19mm HealthSpring loan, $25mm of estimated listing transaction costs, and the potential redemption of $125mm of perpetual convertible preferred shares, plus $5mm of restricted cash. Reflects the repayment of the $19mm HealthSpring loan on March 6, 2023 and repayment of the $400mm term loan due 2024 with available revolver capacity. Other Segment NOI $ 34 Industrial Segment NOI $ 49 Office Segment NOI $ 107 + + Total Consolidated Debt3 $ 1,471 Other Liabilities $ 81 27
A Compelling Investment Opportunity Amazon – Pataskala, OH Experienced, cycle-tested team with strong financial alignment and a real estate operator’s mindset Self-funded business model through capital recycling and free cash flow Wholly-owned, high-quality, newer-vintage portfolio of predominantly single-tenant industrial and office properties located in diverse, strategic growth markets 01 LPL (2 Properties) – Fort Mill, SC Shaw Industries – Savannah, GA 02 03 28
APPENDIX
29 Notes: Reflects board of trustees post-listing; independent trustees shaded. Highly Reputable Board of Trustees Casey Wold Chair Current Chief Executive Officer and Managing Partner of Vanderbilt Office Properties Served as Senior Managing Director of Tishman Speyer and was a member of the Investment and Management committees Served as CIO and COO of Trizec Properties Former board member of CTO Realty Growth, Inc. (NYSE), Trizec Properties (NYSE), and Captivate Networks, Inc. Gregory Cazel Trustee Current Managing Director at Lument Capital Served as Managing Director in the Real Estate Capital Markets division of Wells Fargo Bank, as EVP and Principal at A10 Capi tal, and held various positions at Dexia Real Estate Capital Markets Company and JP Morgan Mortgage Capital Carrie DeWees Trustee Most recently a Managing Principal of Allstate Investments Held various positions in acquisitions, asset management, and investor relations at JMB Realty, Heitman, Henderson Global Adv isors, and American Realty Advisors Current Chief Executive Officer, President and Trustee of Peakstone Realty Trust Served as Chief Investment Officer of Peakstone Realty Trust’s predecessor entities Samuel Tang Trustee Current Managing Partner of TriGuard Management LLC Served as a Managing Director, Equities, of Pacific Life Insurance Company and Managing Partner at The Shidler Group Independent Trustees Trustee Michael Escalante Trustee
E S G Minimize environmental impact of our buildings Emphasize the health and well-being of building occupants Environmentally Sustainable Practices: In-office sustainability initiatives Consider environmental impact in investment decisions Partner with our tenants on sustainability projects Continue to seek new technology solutions Diverse executive management team Individual differences and a diverse and inclusive culture are essential to our continued success Dedicated to enhancing employee wellness and giving back to our community Social Responsibility Initiatives: Maintain a diverse workforce Support employee growth and wellness Promote charitable initiatives Sound corporate governance essential to the success of our organization and stakeholders Governance Practices: Non-staggered board Four of five board members post-listing are independent Independent committees Documented governance, conduct and ethics policies Fully committed to ESG initiatives 30 Corporate Responsibility Commitment
Office JV Key Stats JV Portfolio Stats1 59 / 46 Office Buildings / Properties 8.6mm Rentable Square Feet 22 Markets 14 States Vanguard – Charlotte, NC 2500 Windy Ridge Parkway – Atlanta, GA Duke Bridges I – Frisco, TX 2 Circle Star Way – San Carlos, CA 31 Includes initial transaction of 53 buildings across 41 properties for $1.1bn announced August 2022 and a second transaction of 6 buildings across 5 properties for $170.4mm announced December 2022. JV is managed by an affiliate of Workspace Property Trust. August 2022 Date Entered JV $1.3bn Transaction Value1 49% Minority Interest $179mm Book Value of Equity Workspace Property Trust / Institutional Buyer JV Partner2 JV is unconsolidated and held at book value on balance sheet Not obligated to make any capital contributions $526mm PKST pro-rata share of debt No guarantees or financial commitments with respect to the JV debt Our Office Joint Venture
Detailed Wholly-Owned Portfolio Summary (2) (3) (4) Total calculated as a weighted average based on rentable square feet. Total calculated as a weighted average based on ABR. Lease restricts certain disclosures. 32 # Segment Property / Tenant Name Address Property Market Property State Building Square Feet Tenancy Type % Leased ² Property Sub-Type Year Built / Renovated ¹ ³ Property WALT ³ % of Total ABR 01 Industrial RH 825 Rogers Road Stockton/Modesto CA 1,501,400 Single-Tenant 100.0% Warehouse 2015 7.7 3.5% 02 Industrial Amazon (Etna) 11999 National Road Columbus OH 856,300 Single-Tenant 100.0% Warehouse 2016 – ⁴ 2.9% 03 Industrial 3M 1650 Macom Drive Chicago IL 978,100 Single-Tenant 100.0% Warehouse 2016 3.8 2.3% 04 Industrial Samsonite 10480 Yeager Road Jacksonville FL 817,700 Single-Tenant 100.0% Warehouse 2008 1.9 1.9% 05 Industrial Shaw Industries 445 Northport Parkway Savannah GA 1,001,500 Single-Tenant 100.0% Warehouse 2018 10.3 1.6% 06 Industrial PepsiCo 8060 State Road 33 North Tampa FL 605,400 Single-Tenant 100.0% Warehouse 2018 5.6 1.5% 07 Industrial Amcor 975 West Main Street Cleveland OH 586,700 Single-Tenant 100.0% Manufacturing 1997 9.8 1.3% 08 Industrial Amazon (Arlington Heights) 1455 West Cellular Drive Chicago IL 182,900 Single-Tenant 100.0% Warehouse 2020 – ⁴ 1.1% 09 Industrial Pepsi Bottling Ventures 390 Business Park Drive Winston-Salem NC 526,300 Single-Tenant 100.0% Warehouse 2008 9.6 0.9% 10 Industrial Roush Industries 333/777 Republic Drive Detroit MI 169,200 Single-Tenant 100.0% Industrial/R&D 2000 5.9 0.8% 11 Industrial Berry Global 1515 Franklin Boulevard Chicago IL 193,700 Single-Tenant 100.0% Manufacturing 2003 10.0 0.7% 12 Industrial OceanX 6390 Commerce Court Columbus OH 312,000 Single-Tenant 100.0% Warehouse 2015 6.6 0.7% 13 Industrial Atlas Copco 3301 Cross Creek Parkway Detroit MI 120,000 Single-Tenant 100.0% Industrial/R&D 2014 2.8 0.6% 14 Industrial Huntington Ingalls (500 W. Park Lane) 500 West Park Lane Hampton Roads VA 258,300 Single-Tenant 100.0% Warehouse 1999 5.0 0.6% 15 Industrial Huntington Ingalls (300 W. Park Lane) 300 West Park Lane Hampton Roads VA 257,200 Single-Tenant 100.0% Warehouse 2000 5.0 0.6% 16 Industrial ZF WABCO 8225 Patriot Boulevard Charleston SC 145,200 Single-Tenant 100.0% Warehouse 2016 10.7 0.5% 17 Industrial TransDigm 110 Algonquin Parkway Northern New Jersey NJ 114,300 Single-Tenant 100.0% Manufacturing 1986 5.3 0.5% 18 Industrial Hopkins 428 Peyton Street Emporia KS 320,800 Single-Tenant 100.0% Manufacturing 2000 14.0 0.5% 19 Industrial Fidelity Building Services 25 Loveton Circle Baltimore MD 54,800 Single-Tenant 100.0% Industrial/R&D 1981 12.0 0.3% Total Industrial Segment 19 Properties 9,001,800 100.0% 2010 7.1 $48,191 20 Office Southern Company 3525 & 3535 Colonnade Parkway Birmingham AL 669,400 Single-Tenant 100.0% Office 2018 21.2 4.3% 21 Office Keurig Dr. Pepper (53 South Avenue) 53 South Avenue Boston MA 280,600 Single-Tenant 100.0% Office 2014 6.9 4.1% 22 Office Freeport McMoRan 333 N. Central Ave Phoenix AZ 249,000 Single-Tenant 99.0% Office 2010 4.4 3.7% 23 Office Maxar Technologies 1300 West 120th Avenue Denver CO 430,000 Single-Tenant 100.0% Office 2002 7.5 3.6% 24 Office Terraces at Copley Point 5887 Copley Drive San Diego CA 201,700 Multi-Tenant 100.0% Office 2009 5.4 3.3% 25 Office LPL (1055 & 1060 LPL Way) 1055 & 1060 LPL Way Charlotte SC 307,200 Single-Tenant 100.0% Office 2016 13.8 2.7% 26 Office Travel & Leisure, Co. 14 Sylvan Way Northern New Jersey NJ 203,500 Single-Tenant 100.0% Office 2013 6.7 2.7% 27 Office Wood Group (Westgate III) 17325 Park Row Houston TX 226,300 Single-Tenant 100.0% Office 2014 11.0 2.6% 28 Office IGT 6355 South Buffalo Drive Las Vegas NV 222,300 Single-Tenant 100.0% Office 2008 8.0 2.4% 29 Office International Paper 1740 International Drive Memphis TN 238,600 Single-Tenant 100.0% Office 2015 7.0+ ⁴ 2.3% 30 Office onsemi (5701 N. Pima Road) 5701 N. Pima Road Phoenix AZ 133,400 Single-Tenant 100.0% Office 2017 – ⁴ 1.6% 31 Office Zoetis 10 Sylvan Way Northern New Jersey NJ 125,700 Single-Tenant 100.0% Office 2016 – ⁴ 1.5% 32 Office McKesson (5801 N. Pima Road) 5801 North Pima Road Phoenix AZ 124,900 Single-Tenant 100.0% Office 2019 – ⁴ 1.4% 33 Office McKesson (5601 N. Pima Road) 5601 N. Pima Road Phoenix AZ 138,200 Single-Tenant 100.0% Office 2017 – ⁴ 1.4% 34 Office 40 Wight 40 Wight Avenue Baltimore MD 132,200 Multi-Tenant 93.2% Office 2017 9.8 1.4% 35 Office York Space Systems (East Village) 6060 South Willow Drive Denver CO 138,100 Single-Tenant 100.0% Office/R&D 2020 9.0 1.4% Notes: Data is for wholly-owned assets as of December 31, 2022 adjusted to reflect property sales through March 23, 2023. Properties sorted by % of Total ABR. (1) Year shown is either the year built or year substantially renovated.
Detailed Wholly-Owned Portfolio Summary (Cont’d) (2) (3) (4) Total calculated as a weighted average based on rentable square feet. Total calculated as a weighted average based on ABR. Lease restricts certain disclosures. 33 # Segment Property / Tenant Name Address Property Market Property State Building Square Feet Tenancy Type % Leased ² Property Sub-Type Year Built / Renovated ¹ ³ Property WALT ³ % of Total ABR 36 Office Corteva Agriscience 8501 NW 62nd Ave Des Moines IA 184,300 Single-Tenant 100.0% Office/Lab 2014 3.9 1.4% 37 Office Keurig Dr. Pepper (63 South Avenue) 63 South Avenue Boston MA 150,700 Single-Tenant 100.0% Office/Lab/R&D 2013 6.9 1.3% 38 Office LPL (1040 LPL Way) 1040 LPL Way Charlotte SC 144,400 Single-Tenant 100.0% Office 2016 13.8 1.3% 39 Office Toshiba TEC 3901 South Miami Boulevard Raleigh/Durham NC 200,800 Single-Tenant 100.0% Office 2016 5.3 1.2% 40 Office Mercury Systems 50 Minuteman Road Boston MA 145,300 Single-Tenant 100.0% Office/Lab 1997 9.3 1.2% 41 Office Occidental Petroleum 501 North Division Street Platteville CO 114,500 Single-Tenant 100.0% Office 2013 10.8 1.1% 42 Office Avnet (Phoenix) 2211 S 47th Street Phoenix AZ 176,400 Single-Tenant 100.0% Office 1997 3.7 1.0% 43 Office PPG 400 Bertha Lamme Drive Pittsburgh PA 118,000 Single-Tenant 100.0% Office 2010 8.0 1.0% 44 Office MISO 720 City Center Drive Indianapolis IN 133,400 Single-Tenant 100.0% Office 2016 5.3 1.0% 45 Office Amentum (Heritage III) 13500 Heritage Parkway Dallas/Fort Worth TX 119,000 Single-Tenant 100.0% Office 2006 – ⁴ 0.9% 46 Office Draeger Medical Systems Six Tech Drive Boston MA 128,400 Single-Tenant 100.0% Office/Lab 2020 8.5 0.9% 47 Office Fresenius Medical Care 3355 Earl Campbell Pkwy Tyler TX 81,000 Single-Tenant 100.0% Office 2016 8.8 0.8% 48 Office Cigna (500 Great Circle Road) 500 Great Circle Road Nashville TN 72,200 Single-Tenant 100.0% Office 2012 4.5 0.7% 49 Office Cigna (Express Scripts) 501 Ronda Court Pittsburgh PA 70,500 Single-Tenant 100.0% Office/Data Center 2015 2.5 0.7% 50 Office AT&T (14500 NE 87th Street) 14500 NE 87th Street Seattle/Puget Sound WA 60,000 Single-Tenant 100.0% Office/Data Center 1995 4.7 0.7% 51 Office AT&T (14520 NE 87th Street) 14520 NE 87th Street Seattle/Puget Sound WA 59,800 Single-Tenant 100.0% Office/Data Center 1995 4.7 0.6% 52 Office Parallon 6451 126th Avenue North Tampa FL 83,200 Single-Tenant 100.0% Office 2013 2.2 0.6% 53 Office Tech Data 19031 Ridgewood Parkway San Antonio TX 58,000 Single-Tenant 100.0% Office 2014 1.9 0.5% 54 Office Rapiscan Systems 23 Frontage Road Boston MA 64,200 Single-Tenant 100.0% Office/Lab 2014 4.4 0.4% 55 Office 136 & 204 Capcom 136 & 204 Capcom Avenue Raleigh/Durham NC 63,000 Multi-Tenant 100.0% Office/R&D 2010 3.2 0.4% 56 Office AT&T (14560 NE 87th Street) 14560 NE 87th Street Seattle/Puget Sound WA 36,000 Single-Tenant 100.0% Office/Data Center 1995 4.7 0.4% 57 Office 530 Great Circle Road 530 Great Circle Road Nashville TN 98,400 Single-Tenant 100.0% Office/Lab 2011 – ⁴ – Total Office Segment 38 Properties 6,182,600 99.8% 2012 8.4 $123,526 Total Industrial & Office Segment 57 Properties 15,184,400 99.9% 2011 8.0 $171,717 Notes: Data is for wholly-owned assets as of December 31, 2022 adjusted to reflect property sales through March 23, 2023. Properties sorted by % of Total ABR. (1) Year shown is either the year built or year substantially renovated.
Detailed Wholly-Owned Portfolio Summary (Cont’d) (5) Lease restricts certain disclosures. 34 Total Other Segment 21 Properties 3,787,300 76.6% 2004 3.1 $40,002 Total Wholly-Owned Portfolio ⁴ 78 Properties 18,971,700 95.3% 2010 7.1 $211,719 # Segment Property / Tenant Name Address Property Market Property State Building Square Feet Tenancy Type % Leased ² Property Sub-Type Year Built / Renovated ¹ ³ Property WALT ³ % of Total ABR 58 Other Office Wyndham Hotels & Resorts 22 Sylvan Way Northern New Jersey NJ 249,400 Single-Tenant 100.0% Office 2009 6.7 3.4% 59 Other Office Wood Group (Westgate II) 17320 Katy Freeway Houston TX 186,300 Single-Tenant 100.0% Office 2014 1.3 2.1% 60 Other Office Schlumberger 1200 Enclave Parkway Houston TX 149,700 Single-Tenant 98.3% Office 1999 – ⁵ 1.7% 61 Other Office Level 3 (ParkRidge One) 10475 Park Meadows Drive Denver CO 166,700 Single-Tenant 100.0% Office 1999 – ⁵ 1.6% 62 Other Office Raytheon Technologies 2730 West Tyvola Road Charlotte NC 198,900 Single-Tenant 100.0% Office 1999 – ⁵ 1.5% 63 Other Industrial Hitachi Energy USA 500 West Highway 94 Jefferson City MO 660,000 Single-Tenant 100.0% Manufacturing 1972 1.7 1.3% 64 Other Industrial Avnet (Chandler) 6700 West Morelos Place Phoenix AZ 231,500 Single-Tenant 100.0% Industrial/R&D 2008 – ⁵ 1.3% 65 Other Office Franklin Center 6841 Benjamin Franklin Drive Baltimore MD 202,500 Multi-Tenant 55.4% Office 2008 3.6 1.2% 66 Other Office KBR 345 Bob Heath Drive Huntsville AL 120,000 Single-Tenant 100.0% Office 2013 0.7 1.0% 67 Other Office 30 Independence 30 Independence Boulevard Northern New Jersey NJ 207,300 Multi-Tenant 52.0% Office 2020 8.4 0.8% 68 Other Office Northrop Grumman 4065 Colonel Glenn Highway Cincinnati/Dayton OH 99,200 Single-Tenant 100.0% Office 2012 1.7 0.8% 69 Other Office MGM Corporate Center (880 Grier Drive) 880 Grier Drive Las Vegas NV 81,000 Single-Tenant 100.0% Office 1988 1.7 0.6% 70 Other Industrial Hitachi Astemo 9296 Intermodal North Court Columbus OH 304,600 Single-Tenant 100.0% Warehouse 2014 2.2 0.6% 71 Other Office MGM Corporate Center (840 Grier Drive) 840 Grier Drive Las Vegas NV 60,500 Single-Tenant 100.0% Office 1997 1.7 0.4% 72 Other Office Administrative Office of Pennsylvania Courts 5035 Ritter Road Harrisburg PA 56,600 Single-Tenant 100.0% Office/Data Center 1988 1.5 0.4% 73 Other Industrial Owens Corning 4535 Enterprise Drive Northwest Charlotte NC 61,200 Single-Tenant 100.0% Manufacturing 1998 2.0 0.2% 74 Other Office MGM Corporate Center (950 Grier Drive) 950 Grier Drive Las Vegas NV 26,800 Single-Tenant 100.0% Office 1989 1.7 0.1% 75 Other Office Gold Pointe Corp Ctr Bldg C 11971 Foundation Place Sacramento CA 145,900 Vacant 3.2% Office 2002 – – 76 Other Office Quebec Court II 5800 South Quebec Street Denver CO 157,300 Vacant – Office 1980 – – 77 Other Office Crosspoint 20022 North 31st Avenue Phoenix AZ 351,600 Multi-Tenant 7.8% Office 2021 – ⁵ – 78 Other Office Park Meadows Corporate Center II 10002 Park Meadows Drive Denver CO 70,300 Vacant – Office 2000 – – Recent Dispositions (1Q23) Office Amazon (South Lake at Dulles) Herndon VA 269,900 Single-Tenant 100.0% Office 2020 – ⁵ – Industrial Fox Head Irvine CA 81,600 Single-Tenant 100.0% Industrial/R&D 2012 5.0 – Industrial Renfro Clinton SC 566,600 Single-Tenant 100.0% Warehouse 1986 0.5 – Total ABR as of December 31, 2022 19,889,800 95.5% 2010 7.1 $223,942 Notes: Data is for wholly-owned assets as of December 31, 2022 adjusted to reflect property sales through March 23, 2023. Properties sorted by % of Total ABR. Year shown is either the year built or year substantially renovated. Total calculated as a weighted average based on rentable square feet. Total calculated as a weighted average based on ABR. Includes consolidated properties only and excludes the Office Joint Venture and recent dispositions.
Reconciliation of Non-GAAP Financial Measures Wholly-Owned NOI and Cash NOI Industrial Office Industrial and Office Other Total Portfolio Revenue $15,945 $45,643 $61,588 $14,305 $75,893 Operating property expense (1,083) (5,071) (6,154) (3,203) (9,357) Property tax expense (1,235) (2,940) (4,175) (1,890) (6,065) Management fees (non-affiliate) (63) (312) (375) (214) (589) 4Q22 NOI1 $13,564 $37,320 $50,884 $8,998 $59,882 Non-cash adjustments Straight line rent (135) (4,784) (4,919) 264 (4,655) In-place lease amortization (93) (702) (795) (128) (923) Deferred termination income (36) – (36) (508) (544) Deferred ground lease – 433 433 – 433 Other intangible amortization – 377 377 – 377 Inducement amortization – 79 79 – 79 4Q22 Cash NOI1 $13,300 $32,723 $46,023 $8,626 $54,649 4Q22 Dispositions2 – (3,960) (3,960) – (3,960) 1Q23 Dispositions3 (1,147) (2,079) (3,226) – (3,226) Cash NOI1 $12,153 $26,684 $38,837 $8,626 $47,463 LQA Cash NOI (Wholly-Owned)1 $48,612 $106,736 $155,348 $34,504 $189,852 Quarter Ended December 31, 2022 Notes: $ in thousands. NOI is net of carrying costs for vacant assets. Adjustment for the sales of the State of AL office property and the 5 office properties sold to an investment group led by Workspace Property Trust in 4Q22. (3) Adjustment for the sales of Fox Head industrial property, Renfro industrial property and Amazon (South Lake at Dulles) office property in January 2023, February 2023 and March 2023, respectively. 35
Reconciliation of Non-GAAP Financial Measures (Cont’d) (1) Adjustment for the sales of Fox Head industrial property, Renfro industrial property and Amazon (South Lake at Dulles) office property in January 2023, February 2023 and March 2023, respectively. (2) Includes $59,464 of our share of EBITDA from unconsolidated entities. 36 Net (loss) income to Normalized EBITDAre Quarter Ended 12/31/2022 Net (loss) income ($248,142) Interest expense 16,501 Depreciation and amortization 35,275 4Q22 EBITDA ($196,366) Loss on sales of real estate, net 43,767 (Gain)/loss on investment in unconsolidated entity 9,993 Impairment provision, real estate 41,323 Proportion share of adjustments for unconsolidated entities 5,121 4Q22 EBITDAre ($96,162) Adjustment for acquisitions and dispositions (2,578) Adjustment for joint venture acquisition 7,670 Impairment provision, goodwill 135,270 Transaction expenses 13,724 4Q22 Normalized EBITDAre $57,924 1Q23 Dispositions1 (3,226) Normalized EBITDAre $54,698 LQA Normalized EBITDAre2 $218,792 Notes: $ in thousands.
Definitions 37 Term Definition ABR (“Annualized Base Rent”) “Annualized base rent” or “ABR” means the contractual base rent before abatements and deducting base year operating expenses for gross and modified gross leases as of December 31, 2022, unless otherwise specified, multiplied by 12 months. For properties in our portfolio that had rent abatements as of December 31, 2022, we used the monthly contractual base rent payable following expiration of the abatement EBITDA Earnings before interest, tax, depreciation and amortization EBITDAre The National Association of Real Estate Investment Trusts ("NAREIT") has defined EBITDAre as follows: (a) GAAP Net Income plus (b) interest expense plus (c) income tax expense plus (d) depreciation and amortization plus/minus (e) losses and gains on the disposition of depreciated property, including losses/gains on change of control plus (f) impairment write-downs of depreciated property and of investments in unconsolidated affiliates caused by a decrease in value of depreciated property in the affiliate. Adjustments to reflect the entity's share of EBITDAre of consolidated affiliates
Definitions (Cont’d) 38 Term Definition Investment Grade Investment grade companies means companies (e.g., a tenant or a guarantor or non-guarantor parent of a tenant) that have received an investment grade credit rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a company with a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO investment grade rating; management can provide no assurance as to the comparability of these ratings methodologies or that any particular rating for a company is indicative of the rating that a single NRSRO would provide in the event that it rated all companies for which the Company provides credit ratings; to the extent such companies are rated only by non-NRSRO ratings providers, such ratings providers may use methodologies that are different and less rigorous than those applied by NRSROs; moreover, because PKST provides credit ratings for some companies that are non-guarantor parents of Company's tenants, such credit ratings may not be indicative of the creditworthiness of the relevant tenants NAV Net asset value. This represents the fair value of our assets less liabilities divided by total shares and OP units outstanding Normalized EBITDAre We use Normalized EBITDAre as a non-GAAP supplemental performance measure to evaluate the operating performance of the Company. Normalized EBITDAre, as defined by the Company, represents EBITDAre (as defined by NAREIT), modified to exclude nonroutine items such as acquisition-related expenses, employee separation expenses and other non-routine costs. Normalized EBITDAre also omits the Normalized EBITDAre impact of properties sold during the period and extrapolate the operations of acquired properties to estimate a full quarter of ownership. We may also exclude the annualizing of large transaction items such as termination income recognized during the quarter. Management believes these adjustments to reconcile to Normalized EBITDAre provides investors with supplemental performance information that is consistent with the performance models and analysis used by management, and provides investors a view of the performance of our portfolio over time. Therefore, Normalized EBITDAre should not be considered as an alternative to net income, as computed in accordance with GAAP. Normalized EBITDAre may not be comparable to similarly titled measures of other companies
Definitions (Cont’d) 39 Term Definition Net Debt Total debt less cash and cash equivalents (excluding restricted cash) Net Debt (pro rata share) Total debt plus unconsolidated debt (pro rata share), less cash and cash equivalents (excluding restricted cash) Net Operating Income (NOI) & Cash NOI NOI is a non-GAAP measure which includes the revenue and expense directly attributable to our real estate properties. NOI is calculated as total revenue from real estate operations less property expenses, which includes operating property expenses, property tax expenses and management fees. Net operating income on a cash basis (“Cash NOI”) is net operating income adjusted to exclude the effect of straight-line rent and amortization of acquired above- and below-market lease intangibles adjustments required by GAAP. We believe that NOI and Cash NOI are helpful to investors as additional measures of operating performance because we believe they help both investors and management to understand the core operations of our properties excluding corporate and financing-related costs and non-cash depreciation and amortization. NOI and Cash NOI are unlevered operating performance metrics of our properties and allow for a useful comparison of the operating performance of individual assets or groups of assets. These measures thereby provide an operating perspective not immediately apparent from GAAP income from operations or net income. In addition, NOI and Cash NOI are considered by many in the real estate industry to be useful starting points for determining the value of a real estate asset or group of assets WALT Weighted average lease term (in years). This is the average remaining lease term for all leases combined, weighted based on Annualized Base Rent
DETAILED PORTFOLIO SUMMARIES
Disclaimer The information contained herein with respect to our properties is, to our knowledge, true and correct in all material respects, but in some cases such information has not been independently verified.
Industrial Segment Property Summaries
RH 825 Rogers Road Patterson, CA 95363 Portfolio Segment Industrial Region West Market Stockton/Modesto Submarket Modesto Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. As the largest facility in RH's distribution network, the property distributes furniture and other home goods throughout the western United States. RH receives imported products primarily through the nearby Port of Oakland, and the property's location along Interstate 5 provides convenient access with minimal congestion. MARKET INFORMATION PROPERTY OVERVIEW SEGMENT DESIGNATION TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant RH Ba3 % Leased by Major Lessee 100% Major Lessee SQFT 1,501,400 Industry (Major Tenant) Retailing Lease Type Net % of Total ABR (Property) 3.5% Property WALT 7.7 years BUILDING INFORMATION Detailed Property Type Warehouse Square Feet 1,501,400 Total Property % Leased 100% FAR 0.37 Year Built 2015 Year Renovated N/A Stories 1 Parking Ratio (per 1,000 SF) 0.2 Industrial Property Stats: Trailer Parking Spaces 475 Loading Docks 244 Type of Docks (cross, rear, etc.) Cross Clear Height 39' 1 Property of Peakstone Realty Trust
Amazon (Etna) 11999 National Road Pataskala, OH 43062 Portfolio Segment Industrial Region Midwest Market Columbus Submarket Licking Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. (2) Lease restricts certain disclosures. MARKET INFORMATION PROPERTY OVERVIEW Sortable products fulfillment center for Amazon located along Interstate 70. The property was built to Amazon’s state-of-the-art fulfillment center standards and consistently ranks as one of the top three rated Amazon distribution centers by package volume in the U.S. SEGMENT DESIGNATION TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Amazon AA % Leased by Major Lessee 100% Major Lessee SQFT 856,300 Industry (Major Tenant) E-Commerce Lease Type Net % of Total ABR (Property) 2.9% Property WALT(2) - BUILDING INFORMATION Detailed Property Type Warehouse Square Feet 856,300 Total Property % Leased 100% FAR 0.20 Year Built 2016 Year Renovated N/A Stories 1 Parking Ratio (per 1,000 SF) 3.0 Industrial Property Stats: Trailer Parking Spaces 163 Loading Docks 58 Type of Docks (cross, rear, etc.) Rear Clear Height 40' 6" 2 Property of Peakstone Realty Trust
3M 1650 Macom Drive Dekalb, IL 60115 Portfolio Segment Industrial Region Midwest Market Chicago Submarket Kane/Dupage Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. MARKET INFORMATION PROPERTY OVERVIEW National distribution center for 3M located along Interstate 88 in DeKalb, IL. 3M has maintained distribution operations in the area since 1985, and the property is 3M's newest and largest facility. The property includes specialized areas which contain additional fire protection, special containment floors, and/or explosion-resistant walls. SEGMENT DESIGNATION TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant 3M A+ % Leased by Major Lessee 100% Major Lessee SQFT 978,100 Industry (Major Tenant) Capital Goods Lease Type Net % of Total ABR (Property) 2.3% Property WALT 3.8 years BUILDING INFORMATION Detailed Property Type Warehouse Square Feet 978,100 Total Property % Leased 100% FAR 0.45 Year Built 2016 Year Renovated N/A Stories 1 Parking Ratio (per 1,000 SF) 0.8 Industrial Property Stats: Trailer Parking Spaces 348 Loading Docks 137 Type of Docks (cross, rear, etc.) Cross Clear Height 36' 3 Property of Peakstone Realty Trust
Samsonite 10480 Yeager Road Jacksonville, FL 32218 Portfolio Segment Industrial MARKET INFORMATION Region Southeast Market Jacksonville Submarket Ocean Way Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. PROPERTY OVERVIEW SEGMENT DESIGNATION National distribution center for Samsonite located 8 miles from the Port of Jacksonville. The Port of Jacksonville is Samsonite's primary East Coast point of entry for its luggage products which are stored at the property for distribution throughout the U.S. TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Samsonite Ba2 % Leased by Major Lessee 100% Major Lessee SQFT 817,700 Industry (Major Tenant) Consumer Durables & Apparel Lease Type Net % of Total ABR (Property) 1.9% Property WALT 1.9 years BUILDING INFORMATION Detailed Property Type Warehouse Square Feet 817,700 Total Property % Leased 100% FAR 0.35 Year Built 2008 Year Renovated N/A Stories 1 Parking Ratio (per 1,000 SF) 0.3 Industrial Property Stats: Trailer Parking Spaces 131 Loading Docks 183 Type of Docks (cross, rear, etc.) Cross Clear Height 40' 4 Property of Peakstone Realty Trust
Shaw Industries 445 Northport Parkway Port Wentworth, GA 31407 Portfolio Segment Industrial MARKET INFORMATION Region Southeast Market Savannah Submarket Port Wentworth Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. PROPERTY OVERVIEW SEGMENT DESIGNATION Distribution facility for Shaw Industries to distribute its resilient, wood, and vinyl flooring products throughout the United States. The building is located approximately 11 miles from the Port of Savannah which Shaw utilizes as the primary East Coast point of entry for its products. TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Shaw Industries AA % Leased by Major Lessee 100% Major Lessee SQFT 1,001,500 Industry (Major Tenant) Consumer Durables & Apparel Lease Type Net % of Total ABR (Property) 1.6% Property WALT 10.3 years BUILDING INFORMATION Detailed Property Type Warehouse Square Feet 1,001,500 Total Property % Leased 100% FAR 0.33 Year Built 2018 Year Renovated N/A Stories 1 Parking Ratio (per 1,000 SF) 0.1 Industrial Property Stats: Trailer Parking Spaces 160 Loading Docks 145 Type of Docks (cross, rear, etc.) Cross Clear Height 32' 5 Property of Peakstone Realty Trust
PepsiCo 8060 State Road 33 North Lakeland, FL 33809 Portfolio Segment Industrial Region Southeast Market Tampa Submarket Polk County Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. MARKET INFORMATION PROPERTY OVERVIEW Distribution facility used by PepsiCo to distribute Gatorade and other beverage products throughout Florida. Strategically located along the high-growth Interstate 4 corridor between Tampa and Orlando. The property provides a central location for the tenant to receive pallets of Gatorade products from its nearby Gatorade production facility in Kissimmee for distribution to retailers and wholesalers statewide. SEGMENT DESIGNATION TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant PepsiCo A+ % Leased by Major Lessee 100% Major Lessee SQFT 605,400 Industry (Major Tenant) Food, Beverage & Tobacco Lease Type Net % of Total ABR (Property) 1.5% Property WALT 5.6 years BUILDING INFORMATION Detailed Property Type Warehouse Square Feet 605,400 Total Property % Leased 100% FAR 0.23 Year Built 2018 Year Renovated N/A Stories 1 Parking Ratio (per 1,000 SF) 0.2 Industrial Property Stats: Trailer Parking Spaces 154 Loading Docks 120 Type of Docks (cross, rear, etc.) Cross Clear Height 36' 6 Property of Peakstone Realty Trust
Amcor 975 West Main Street Bellevue, OH 44811 Portfolio Segment Industrial Region Midwest Market Cleveland Submarket Sandusky County Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. MARKET INFORMATION PROPERTY OVERVIEW Amcor's flagship injection molding facility in the state of Ohio. Amcor expanded and nearly doubled its manufacturing and warehouse footprint in 2017 by adding an additional 118,000 SF of manufacturing space and 84,000 SF of warehouse space in order to meet the increased demand for its products. SEGMENT DESIGNATION TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Amcor BBB % Leased by Major Lessee 100% Major Lessee SQFT 586,700 Industry (Major Tenant) Materials Lease Type Net % of Total ABR (Property) 1.3% Property WALT 9.8 years BUILDING INFORMATION Detailed Property Type Manufacturing Square Feet 586,700 Total Property % Leased 100% FAR 0.33 Year Built 1986 Year Renovated 1997 Stories 1 Parking Ratio (per 1,000 SF) 0.2 Industrial Property Stats: Trailer Parking Spaces 30 Loading Docks 24 Type of Docks (cross, rear, etc.) Rear Clear Height 25' 7 Property of Peakstone Realty Trust
Amazon (Arlington Heights) 1455 West Cellular Drive Arlington Heights, IL 60004 Portfolio Segment Industrial MARKET INFORMATION Region Midwest Market Chicago Submarket Schaumburg Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. (2) Lease restricts certain disclosures. PROPERTY OVERVIEW SEGMENT DESIGNATION Last-mile delivery station for Amazon serving the Northern Chicago suburbs. The building has above-standard power, full A/C, and is located on a 24-acre site which provides over 800 parking spaces for Amazon's employees and its delivery fleet. TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Amazon AA % Leased by Major Lessee 100% Major Lessee SQFT 182,900 Industry (Major Tenant) E-Commerce Lease Type Net % of Total ABR (Property) 1.1% Property WALT(2) - BUILDING INFORMATION Detailed Property Type Warehouse Square Feet 182,900 Total Property % Leased 100% FAR 0.17 Year Built 1989 Year Renovated 2020 Stories 1 Parking Ratio (per 1,000 SF) 4.4 Industrial Property Stats: Trailer Parking Spaces 0 Loading Docks 12 Type of Docks (cross, rear, etc.) Rear Clear Height 17' 8 Property of Peakstone Realty Trust
Pepsi Bottling Ventures 390 Business Park Drive Winston-Salem, NC 27107 Portfolio Segment Industrial Region Southeast Market Winston-Salem Submarket South Forsyth Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. MARKET INFORMATION PROPERTY OVERVIEW Pepsi Bottling Ventures ("PBV"), the largest privately held bottler for PepsiCo products in North America, is a joint venture between Suntory Beverage & Food, Ltd. and PepsiCo, Inc. The property is PBV's largest warehouse and distributes PepsiCo beverage products throughout the Carolinas. The building includes a purification system to produce Aquafina and a blow molding line for Aquafina and other PepsiCo beverage products. SEGMENT DESIGNATION TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Pepsi Bottling Ventures A3 % Leased by Major Lessee 100% Major Lessee SQFT 526,300 Industry (Major Tenant) Food, Beverage & Tobacco Lease Type Net % of Total ABR (Property) 0.9% Property WALT 9.6 years BUILDING INFORMATION Detailed Property Type Warehouse Square Feet 526,300 Total Property % Leased 100% FAR 0.24 Year Built 2008 Year Renovated N/A Stories 1 Parking Ratio (per 1,000 SF) 0.5 Industrial Property Stats: Trailer Parking Spaces 63 Loading Docks 44 Type of Docks (cross, rear, etc.) Cross Clear Height 32' 6" 9 Property of Peakstone Realty Trust
Roush Industries 333/777 Republic Drive Allen Park, MI 48101 Portfolio Segment Industrial MARKET INFORMATION Region Midwest Market Detroit Submarket Dearborn Area Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. PROPERTY OVERVIEW SEGMENT DESIGNATION R&D facility for Roush Industries directly supporting automotive clients including the nearby Ford Dearborn Development Center and Ford Rolling Road Wind Tunnel in Allen Park. As an original equipment manufacturer and design partner to various automakers, the location is paramount for direct access to Roush Industries’ top clients, and the single- story building provides an efficient layout for engineering and testing functions. TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Roush Industries N/A % Leased by Major Lessee 100% Major Lessee SQFT 169,200 Industry (Major Tenant) Automobiles & Components Lease Type Net % of Total ABR (Property) 0.8% Property WALT 5.9 years BUILDING INFORMATION Detailed Property Type Industrial/R&D Square Feet 169,200 Total Property % Leased 100% FAR 0.19 Year Built 2000 Year Renovated N/A Stories 1 Parking Ratio (per 1,000 SF) 7.2 Industrial Property Stats: Trailer Parking Spaces 0 Loading Docks 0 Type of Docks (cross, rear, etc.) N/A Clear Height 26' 10 Property of Peakstone Realty Trust
Berry Global 1515 Franklin Boulevard Libertyville, IL 60048 Portfolio Segment Industrial MARKET INFORMATION Region Midwest Market Chicago Submarket South Lake County Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. PROPERTY OVERVIEW SEGMENT DESIGNATION Manufacturing facility for Berry Global for the production of plastic closure products for various applications and end markets. The building contains nearly 10,000 amps of power, several production lines, dozens of presses, and other critical infrastructure to support the tenant's manufacturing processes. The tenant recently extended its lease for 10 years. TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Berry Global BB+ % Leased by Major Lessee 100% Major Lessee SQFT 193,700 Industry (Major Tenant) Materials Lease Type Net % of Total ABR (Property) 0.7% Property WALT 10.0 years BUILDING INFORMATION Detailed Property Type Manufacturing Total Square Feet 193,700 Total Property % Leased 100% FAR 0.43 Year Built 1992 Year Renovated 2003 Stories 1 Parking Ratio (per 1,000 SF) 1.3 Industrial Property Stats: Trailer Parking Spaces 0 Loading Docks 5 Type of Docks (cross, rear, etc.) Rear Clear Height 24' 11 Property of Peakstone Realty Trust
OceanX 6390 Commerce Court Groveport, OH 43125 Portfolio Segment Industrial MARKET INFORMATION Region Midwest Market Columbus Submarket Southeast Columbus Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. PROPERTY OVERVIEW SEGMENT DESIGNATION Distribution center for OceanX, a modern 3PL that provides Fulfillment-as-a-Service (FaaS). The property's central location in the United States and proximity to major transportation routes allows the tenant to meet the growing demands of its customers. TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant OceanX N/A % Leased by Major Lessee 100% Major Lessee SQFT 312,000 Industry (Major Tenant) Commercial & Professional Services Lease Type Net % of Total ABR (Property) 0.7% Property WALT 6.6 years BUILDING INFORMATION Detailed Property Type Warehouse Square Feet 312,000 Total Property % Leased 100% FAR 0.30 Year Built 2015 Year Renovated N/A Stories 1 Parking Ratio (per 1,000 SF) 0.6 Industrial Property Stats: Trailer Parking Spaces 15 Loading Docks 26 Type of Docks (cross, rear, etc.) Rear Clear Height 32' 12 Property of Peakstone Realty Trust
Atlas Copco 3301 Cross Creek Parkway Auburn Hills, MI 48326 Portfolio Segment Industrial Region Midwest Market Detroit Submarket Oakland County Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. Headquarters and R&D/warehouse building for Atlas Copco Tools & Assembly Systems, a division of Atlas Copco AB. The property is conveniently located in close proximity to the company's automotive clients throughout the Detroit area. The tenant uses the building for assembly, testing, and research and development of prototypes of industrial tooling, fastening, and compressor devices and related products. SEGMENT DESIGNATION MARKET INFORMATION PROPERTY OVERVIEW TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Atlas Copco A+ % Leased by Major Lessee 100% Major Lessee SQFT 120,000 Industry (Major Tenant) Capital Goods Lease Type Net % of Total ABR (Property) 0.6% Property WALT 2.8 years BUILDING INFORMATION Detailed Property Type Industrial/R&D Square Feet 120,000 Total Property % Leased 100% FAR 0.19 Year Built 2014 Year Renovated N/A Stories 2 Parking Ratio (per 1,000 SF) 2.4 Industrial Property Stats: Trailer Parking Spaces 0 Loading Docks 2 Type of Docks (cross, rear, etc.) Rear Clear Height 28' 13 Property of Peakstone Realty Trust
Huntington Ingalls (500 W. Park Lane) 500 West Park Lane Hampton, VA 23666 Portfolio Segment Industrial MARKET INFORMATION Region Southeast Market Hampton Roads Submarket Peninsula Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. PROPERTY OVERVIEW SEGMENT DESIGNATION Highly-secure warehouse facility for Huntington Ingalls and its Newport News Shipbuilding segment. Strategically located near the Port of Virginia and Newport News Shipbuilding. TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Huntington Ingalls BBB- % Leased by Major Lessee 100% Major Lessee SQFT 258,300 Industry (Major Tenant) Capital Goods Lease Type Net % of Total ABR (Property) 0.6% Property WALT 5.0 years BUILDING INFORMATION Detailed Property Type Warehouse Square Feet 258,300 Total Property % Leased 100% FAR 0.30 Year Built 1999 Year Renovated N/A Stories 1 Parking Ratio (per 1,000 SF) 0.9 Industrial Property Stats: Trailer Parking Spaces 151 Loading Docks 58 Type of Docks (cross, rear, etc.) Rear Clear Height 25' 14 Property of Peakstone Realty Trust
Huntington Ingalls (300 W. Park Lane) 300 West Park Lane Hampton, VA 23666 Portfolio Segment Industrial MARKET INFORMATION Region Southeast Market Hampton Roads Submarket Peninsula Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. PROPERTY OVERVIEW SEGMENT DESIGNATION Highly-secure warehouse facility for Huntington Ingalls and its Newport News Shipbuilding segment. Strategically located near the Port of Virginia and Newport News Shipbuilding. TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Huntington Ingalls BBB- % Leased by Major Lessee 100% Major Lessee SQFT 257,200 Industry (Major Tenant) Capital Goods Lease Type Net % of Total ABR (Property) 0.6% Property WALT 5.0 years BUILDING INFORMATION Detailed Property Type Warehouse Square Feet 257,200 Total Property % Leased 100% FAR 0.33 Year Built 2000 Year Renovated N/A Stories 1 Parking Ratio (per 1,000 SF) 1.1 Industrial Property Stats: Trailer Parking Spaces 107 Loading Docks 42 Type of Docks (cross, rear, etc.) Rear Clear Height 25' 15 Property of Peakstone Realty Trust
ZF WABCO 8225 Patriot Boulevard North Charleston, SC 29418 Portfolio Segment Industrial Region Southeast Market Charleston Submarket North Charleston Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. MARKET INFORMATION PROPERTY OVERVIEW Light manufacturing and assembly facility for ZF Commercial Vehicle Solutions, a business unit of ZF. The property is conveniently located near the Port of Charleston - the main point of entry for the tenant to import various parts for final assembly. ZF utilizes the property to design and assemble air compressors, disc brakes, and related components for use in commercial trucking applications. SEGMENT DESIGNATION TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant ZF WABCO HY3 % Leased by Major Lessee 100% Major Lessee SQFT 145,200 Industry (Major Tenant) Capital Goods Lease Type Net % of Total ABR (Property) 0.5% Property WALT 10.7 years BUILDING INFORMATION Detailed Property Type Warehouse Square Feet 145,200 Total Property % Leased 100% FAR 0.35 Year Built 2016 Year Renovated N/A Stories 1 Parking Ratio (per 1,000 SF) 1.4 Industrial Property Stats: Trailer Parking Spaces 0 Loading Docks 6 Type of Docks (cross, rear, etc.) Rear Clear Height 30' 16 Property of Peakstone Realty Trust
TransDigm 110 Algonquin Parkway Whippany, NJ 07981 Portfolio Segment Industrial MARKET INFORMATION Region Northeast Market Northern New Jersey Submarket Eastern Morris Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. PROPERTY OVERVIEW SEGMENT DESIGNATION Headquarters and light manufacturing facility for Whippany Actuation Systems, a business group of TransDigm. Whippany Actuation Systems utilizes the property to design and manufacture specialized electromechanical actuation solutions for commercial and military applications. Located in proximity to Port Newark, a major component of the Port of NY/NJ which is the 2nd largest port in the U.S. by TEU volume. TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant TransDigm B+ % Leased by Major Lessee 100% Major Lessee SQFT 114,300 Industry (Major Tenant) Capital Goods Lease Type Net % of Total ABR (Property) 0.5% Property WALT 5.3 years BUILDING INFORMATION Detailed Property Type Manufacturing Square Feet 114,300 Total Property % Leased 100% FAR 0.24 Year Built 1986 Year Renovated N/A Stories 2 Parking Ratio (per 1,000 SF) 3.9 Industrial Property Stats: Trailer Parking Spaces 0 Loading Docks 3 Type of Docks (cross, rear, etc.) Rear Clear Height 22' 17 Property of Peakstone Realty Trust
Hopkins 428 Peyton Street Emporia, KS 66801 Portfolio Segment Industrial Region Midwest Market Emporia Submarket Lyon County Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. MARKET INFORMATION PROPERTY OVERVIEW SEGMENT DESIGNATION Hopkins' national production and distribution facility for after-market automotive products and accessories. Hopkins is a leading provider of automotive winter tools including ice scrapers, snow brooms, and snow brushes. The facility has been expanded multiple times over the years to accommodate growing business and product lines, and the tenant recently signed a 16-year lease extension. TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Hopkins N/A % Leased by Major Lessee 100% Major Lessee SQFT 320,800 Industry (Major Tenant) Automobiles & Components Lease Type Net % of Total ABR (Property) 0.5% Property WALT 14.0 years BUILDING INFORMATION Detailed Property Type Manufacturing Square Feet 320,800 Total Property % Leased 100% FAR 0.44 Year Built 1954 Year Renovated 2000 Stories 1 Parking Ratio (per 1,000 SF) 0.8 Industrial Property Stats: Trailer Parking Spaces 0 Loading Docks 15 Type of Docks (cross, rear, etc.) Rear Clear Height 21' 18 Property of Peakstone Realty Trust
Fidelity Building Services 25 Loveton Circle Sparks Glencoe, MD 21152 Portfolio Segment Industrial Region Northeast Market Baltimore Submarket Route 83 Corridor Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. Corporate headquarters and warehouse for Fidelity Building Services Group, an integrated building services engineering firm. Fidelity provides best in class integrated building services throughout the Mid-Atlantic and Southeast, including: HVAC/Mechanical Services, Engineering Retrofits & Targeted Design-Build, IOT, Building Automation & Controls, Emergency Power Generator & Electrification. SEGMENT DESIGNATION MARKET INFORMATION PROPERTY OVERVIEW TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Fidelity Building Services N/A % Leased by Major Lessee 100% Major Lessee SQFT 54,800 Industry (Major Tenant) Commercial & Professional Services Lease Type Net % of Total ABR (Property) 0.3% Property WALT 12.0 years BUILDING INFORMATION Detailed Property Type Industrial/R&D Square Feet 54,800 Total Property % Leased 100% FAR 0.23 Year Built 1981 Year Renovated N/A Stories 1 Parking Ratio (per 1,000 SF) 2.7 Industrial Property Stats: Trailer Parking Spaces 0 Loading Docks 2 Type of Docks (cross, rear, etc.) Rear Clear Height 14' 19 Property of Peakstone Realty Trust
Office Segment Property Summaries
Southern Company 3525 & 3535 Colonnade Parkway Birmingham, AL 35243 Portfolio Segment Office Region Southeast Market Birmingham Submarket South Jefferson Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. MARKET INFORMATION PROPERTY OVERVIEW Division headquarters for Southern Company Services and Southern Nuclear. As part of the 2018 renovation the tenant invested significant amounts of its own capital. The funds were used for an extensive reconstruction of the base building which replaced or upgraded most the building's mechanical systems as well as an expansion of the adjacent parking deck. SEGMENT DESIGNATION TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Southern Company BBB+ % Leased by Major Lessee 100% Major Lessee SQFT 669,400 Industry (Major Tenant) Utilities Lease Type Net % of Total ABR (Property) 4.3% Property WALT 21.2 years BUILDING INFORMATION Detailed Property Type Office Square Feet 669,400 Total Property % Leased 100% FAR 0.80 Year Built 1988 Year Renovated 2018 Stories 9 Parking Ratio (per 1,000 SF) 2.8 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 20 Property of Peakstone Realty Trust
Portfolio Segment Office Co-corporate headquarters for Keurig Dr. Pepper. Located along the coveted Route 128/Interstate 95 corridor at its junction with Route 3 in Burlington, which is one of the region’s most desirable mixed-use destinations. Trophy office tower constructed to a first-class headquarters quality standard which is important for Fortune 500 tenants like Keurig Dr. Pepper. SEGMENT DESIGNATION MARKET INFORMATION Region Northeast Market Boston Submarket Route 128 North Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. Keurig Dr. Pepper (53 South Avenue) 53 South Avenue Burlington, MA 01803 PROPERTY OVERVIEW TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Keurig Dr. Pepper BBB % Leased by Major Lessee 100% Major Lessee SQFT 280,600 Industry (Major Tenant) Food, Beverage & Tobacco Lease Type Net % of Total ABR (Property) 4.1% Property WALT 6.9 years BUILDING INFORMATION Detailed Property Type Office Square Feet 280,600 Total Property % Leased 100% FAR 1.69 Year Built 2014 Year Renovated N/A Stories 6 Parking Ratio (per 1,000 SF) 3.1 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 21 Property of Peakstone Realty Trust
Portfolio Segment Office Corporate headquarters for Freeport McMoRan, a leading international mining company. The ownership interest is a condominium comprised of floors 19-26 and half of the ground floor. The ownership interest makes up 48% of the building, the remaining 52% (floors 11-18) is occupied by the Westin Phoenix Downtown, a 242-room, four-diamond hotel. Floors 2- 10 include parking and are shared by the building occupants. SEGMENT DESIGNATION MARKET INFORMATION Region Southwest Market Phoenix Submarket Phoenix Central Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. Freeport McMoRan 333 N. Central Ave Phoenix, AZ 85004 PROPERTY OVERVIEW TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Freeport McMoRan Baa2 % Leased by Major Lessee 99% Major Lessee SQFT 246,500 Industry (Major Tenant) Materials Lease Type Base Year % of Total ABR (Property) 3.7% Property WALT 4.4 years BUILDING INFORMATION Detailed Property Type Office Square Feet 249,000 Total Property % Leased 99% FAR N/A Year Built 2010 Year Renovated N/A Stories N/A Parking Ratio (per 1,000 SF) 2.1 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 22 Property of Peakstone Realty Trust
Maxar Technologies 1300 West 120th Avenue Westminster, CO 80234 Portfolio Segment Office MARKET INFORMATION Region West Market Denver Submarket North Denver Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. PROPERTY OVERVIEW SEGMENT DESIGNATION Global headquarters for Maxar Technologies, a space technology company focused on providing geospatial intelligence solutions through its two operating segments, Earth Intelligence and Space Infrastructure. Includes SCIF and data center space. TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Maxar Technologies B+ % Leased by Major Lessee 100% Major Lessee SQFT 430,000 Industry (Major Tenant) Capital Goods Lease Type Net % of Total ABR (Property) 3.6% Property WALT 7.5 years BUILDING INFORMATION Detailed Property Type Office Square Feet 430,000 Total Property % Leased 100% FAR 0.31 Year Built 2002 Year Renovated N/A Stories 4 Parking Ratio (per 1,000 SF) 4.1 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 23 Property of Peakstone Realty Trust
Portfolio Segment Office The property is 70% leased to Guild Mortgage with the remaining 30% leased to Cox Communications. Highly visible from its elevated position on a bluff at the southeast corner of the Interstate 805 and Highway 52 interchange, offering excellent visibility and accessibility. SEGMENT DESIGNATION MARKET INFORMATION Region West Market San Diego Submarket Kearny Mesa Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. Terraces at Copley Point 5887 Copley Drive San Diego, CA 92111 PROPERTY OVERVIEW TENANT AND PROPERTY INFORMATION Tenancy Type Multi-Tenant Credit(1) Tenant Guild Mortgage IG10 % Leased by Major Lessee 70% Major Lessee SQFT 141,700 Industry (Major Tenant) Commercial & Professional Services Lease Type Base Year + E % of Total ABR (Property) 3.3% Property WALT 5.4 years BUILDING INFORMATION Detailed Property Type Office Square Feet 201,700 Total Property % Leased 100% FAR 0.41 Year Built 2009 Year Renovated N/A Stories 6 Parking Ratio (per 1,000 SF) 3.8 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 24 Property of Peakstone Realty Trust
LPL (1055 & 1060 LPL Way) 1055 & 1060 LPL Way Fort Mill, SC 29175 Portfolio Segment Office Region Southeast Market Charlotte Submarket York County Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. MARKET INFORMATION PROPERTY OVERVIEW SEGMENT DESIGNATION The property is one of two adjacent buildings developed as a build-to-suit for LPL and serves as the largest of its four primary U.S. office locations. Asset is located in a thriving mixed-use development with walkable retail, lodging, and excellent accessibility to Interstate 77. TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant LPL Baa3 % Leased by Major Lessee 100% Major Lessee SQFT 307,200 Industry (Major Tenant) Diversified Financials Lease Type Net % of Total ABR (Property) 2.7% Property WALT 13.8 years BUILDING INFORMATION Detailed Property Type Office Square Feet 307,200 Total Property % Leased 100% FAR 0.54 Year Built 2016 Year Renovated N/A Stories 6 Parking Ratio (per 1,000 SF) 4.2 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 25 Property of Peakstone Realty Trust
Portfolio Segment Office SEGMENT DESIGNATION MARKET INFORMATION Property is 100% leased to Travel & Leisure. Asset is located in the desirable Parsippany, NJ office market with excellent accessibility to Interstate 287. The Class "A" property was built in 2013 and contains high-end finishes, amenities, and achieved LEED Gold certification. Region Northeast Market Northern New Jersey Submarket Parsippany Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. Travel & Leisure, Co. 14 Sylvan Way Parsippany, NJ 07045 PROPERTY OVERVIEW TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Travel & Leisure BB- % Leased by Major Lessee 100% Major Lessee SQFT 203,500 Industry (Major Tenant) Consumer Services Lease Type Net % of Total ABR (Property) 2.7% Property WALT 6.7 years BUILDING INFORMATION Detailed Property Type Office Square Feet 203,500 Total Property % Leased 100% FAR 0.20 Year Built 2013 Year Renovated N/A Stories 3 Parking Ratio (per 1,000 SF) 3.9 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 26 Property of Peakstone Realty Trust
Wood Group (Westgate III) 17325 Park Row Houston, TX 77084 Portfolio Segment Office MARKET INFORMATION Region Southwest Market Houston Submarket Katy Freeway West Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. PROPERTY OVERVIEW SEGMENT DESIGNATION Corporate headquarters for Wood Group USA, a business unit of John Wood Group PLC. Located in the Energy Corridor submarket of Houston along Interstate 10, midway between Beltway 8 and the Grand Parkway. TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Wood Group HY6 % Leased by Major Lessee 100% Major Lessee SQFT 226,300 Industry (Major Tenant) Energy Lease Type Net % of Total ABR (Property) 2.6% Property WALT 11.0 years BUILDING INFORMATION Detailed Property Type Office Square Feet 226,300 Total Property % Leased 100% FAR 0.88 Year Built 2014 Year Renovated N/A Stories 5 Parking Ratio (per 1,000 SF) 4.0 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 27 Property of Peakstone Realty Trust
IGT 6355 South Buffalo Drive Las Vegas, NV 89113 Portfolio Segment Office Region Southwest Market Las Vegas Submarket South Las Vegas Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. MARKET INFORMATION PROPERTY OVERVIEW North American headquarters for IGT Gaming. IGT is the global leader in gaming across four channels including lotteries, gaming machines, sports betting, and digital. The property provides locational benefits for IGT, including close proximity to the Las Vegas Strip and access to labor pools across the metropolitan area. SEGMENT DESIGNATION TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant IGT BB+ % Leased by Major Lessee 100% Major Lessee SQFT 222,300 Industry (Major Tenant) Consumer Services Lease Type Net % of Total ABR (Property) 2.4% Property WALT 8.0 years BUILDING INFORMATION Detailed Property Type Office Square Feet 222,300 Total Property % Leased 100% FAR 0.38 Year Built 2008 Year Renovated N/A Stories 3 Parking Ratio (per 1,000 SF) 4.0 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 28 Property of Peakstone Realty Trust
Portfolio Segment Office Located in one of the top submarkets of Memphis, the property was developed as a build-to-suit for International Paper. One of three buildings comprising International Paper’s global headquarters campus. SEGMENT DESIGNATION MARKET INFORMATION Region Southeast Market Memphis Submarket East Memphis Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. (2) Lease restricts certain disclosures. International Paper 1740 International Drive Memphis, TN 38120 PROPERTY OVERVIEW TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant International Paper BBB % Leased by Major Lessee 100% Major Lessee SQFT 238,600 Industry (Major Tenant) Materials Lease Type Net % of Total ABR (Property) 2.3% Property WALT(2) 7.0+ years BUILDING INFORMATION Detailed Property Type Office Square Feet 238,600 Total Property % Leased 100% FAR 1.07 Year Built 2015 Year Renovated N/A Stories 9 Parking Ratio (per 1,000 SF) 4.1 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 29 Property of Peakstone Realty Trust
Portfolio Segment Office SEGMENT DESIGNATION MARKET INFORMATION Corporate headquarters for onsemi. The tenant recently executed a new lease which represents one of the largest office leases executed in the Phoenix MSA over the past three years. Offers highly visible building top signage in addition to 450+ feet of building frontage along the 101 Freeway. Region Southwest Market Phoenix Submarket Scottsdale South Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. (2) Lease restricts certain disclosures. onsemi (5701 N. Pima Road) 5701 N. Pima Road Scottsdale, AZ 85250 PROPERTY OVERVIEW TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant onsemi BB+ % Leased by Major Lessee 100% Major Lessee SQFT 133,400 Industry (Major Tenant) Semiconductors & Semiconductor Equipment Lease Type Net % of Total ABR (Property) 1.6% Property WALT(2) - BUILDING INFORMATION Detailed Property Type Office Square Feet 133,400 Total Property % Leased 100% FAR 0.20 Year Built 2017 Year Renovated N/A Stories 2 Parking Ratio (per 1,000 SF) 7.7 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 30 Property of Peakstone Realty Trust
Portfolio Segment Office MARKET INFORMATION Corporate headquarters for Zoetis, a global leader in the discovery, development, manufacture and commercialization of animal health medicines and vaccines. The property was a renovation-to-suit for Zoetis. As part of the renovation the building was stripped down to the frame and transformed to a state-of-the-art headquarters including the addition of a parking deck to expand the parking count. SEGMENT DESIGNATION Region Northeast Market Northern New Jersey Submarket Parsippany Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. (2) Lease restricts certain disclosures. Zoetis 10 Sylvan Way Parsippany, NJ 07054 PROPERTY OVERVIEW TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Zoetis Baa1 % Leased by Major Lessee 100% Major Lessee SQFT 125,700 Industry (Major Tenant) Pharmaceuticals, Biotechnology & Life Sciences Lease Type Net % of Total ABR (Property) 1.5% Property WALT(2) - BUILDING INFORMATION Detailed Property Type Office Square Feet 125,700 Total Property % Leased 100% FAR 0.31 Year Built 1984 Year Renovated 2016 Stories 3 Parking Ratio (per 1,000 SF) 4.2 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 31 Property of Peakstone Realty Trust
Portfolio Segment Office Property is leased to McKesson. The building is LEED certified and offers highly visible building top signage in addition to 450+ feet of building frontage along the 101 Freeway. SEGMENT DESIGNATION MARKET INFORMATION Region Southwest Market Phoenix Submarket Scottsdale South Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. (2) Lease restricts certain disclosures. McKesson (5801 N. Pima Road) 5801 N. Pima Road Scottsdale, AZ 85250 PROPERTY OVERVIEW TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant McKesson BBB+ % Leased by Major Lessee 100% Major Lessee SQFT 124,900 Industry (Major Tenant) Health Care Equipment & Services Lease Type Net % of Total ABR (Property) 1.4% Property WALT(2) - BUILDING INFORMATION Detailed Property Type Office Square Feet 124,900 Total Property % Leased 100% FAR 0.26 Year Built 2019 Year Renovated N/A Stories 2 Parking Ratio (per 1,000 SF) 5.9 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 32 Property of Peakstone Realty Trust
McKesson (5601 N. Pima Road) 5601 N. Pima Road Scottsdale, AZ 85250 Portfolio Segment Office MARKET INFORMATION Region Southwest Market Phoenix Submarket Scottsdale South Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. (2) Lease restricts certain disclosures. PROPERTY OVERVIEW SEGMENT DESIGNATION Property is leased to McKesson. The building is LEED certified and offers highly visible building top signage in addition to 450+ feet of building frontage along the 101 Freeway. TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant McKesson BBB+ % Leased by Major Lessee 100% Major Lessee SQFT 138,200 Industry (Major Tenant) Health Care Equipment & Services Lease Type Net % of Total ABR (Property) 1.4% Property WALT(2) - BUILDING INFORMATION Detailed Property Type Office Square Feet 138,200 Total Property % Leased 100% FAR 0.20 Year Built 2017 Year Renovated N/A Stories 2 Parking Ratio (per 1,000 SF) 6.7 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 33 Property of Peakstone Realty Trust
Portfolio Segment Office Property is 93% leased to two tenants and serves as the corporate headquarters for Johnson, Mirmiran & Thompson ("JMT") which occupies 89% of the building. The building is LEED certified and was developed in 2017 as a build-to-suit for JMT, a regional engineering and design firm. SEGMENT DESIGNATION MARKET INFORMATION Region Northeast Market Baltimore Submarket Route 83 North Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. 40 Wight 40 Wight Avenue Hunt Valley, MD 21030 PROPERTY OVERVIEW TENANT AND PROPERTY INFORMATION Tenancy Type Multi-Tenant Credit(1) Tenant Johnson, Mirmiran & Thompson N/A % Leased by Major Lessee 89% Major Lessee SQFT 117,800 Industry (Major Tenant) Commercial & Professional Services Lease Type Net % of Total ABR (Property) 1.4% Property WALT 9.8 years BUILDING INFORMATION Detailed Property Type Office Square Feet 132,200 Total Property % Leased 93% FAR 0.33 Year Built 2017 Year Renovated N/A Stories 5 Parking Ratio (per 1,000 SF) 4.3 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 34 Property of Peakstone Realty Trust
York Space Systems (East Village) 6060 South Willow Drive Greenwood Village, CO 80111 Portfolio Segment Office MARKET INFORMATION Region West Market Denver Submarket Southeast Denver Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. PROPERTY OVERVIEW SEGMENT DESIGNATION Satellite assembly and operations facility for York Space Systems. York Space Systems is a company focusing on designing and manufacturing spacecraft platforms. Property underwent a full building renovation in 2020 at a cost of approximately $9m ($65/sf). Asset has excellent access to Interstate 25 and is located less than one half mile north of the Arapahoe at Village Center Station light rail stop. TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant York Space Systems N/A % Leased by Major Lessee 100% Major Lessee SQFT 138,100 Industry (Major Tenant) Capital Goods Lease Type Net % of Total ABR (Property) 1.4% Property WALT 9.0 years BUILDING INFORMATION Detailed Property Type Office/R&D Square Feet 138,100 Total Property % Leased 100% FAR 0.50 Year Built 1982 Year Renovated 2020 Stories 3 Parking Ratio (per 1,000 SF) 4.0 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 35 Property of Peakstone Realty Trust
Portfolio Segment Office Constructed in 2014 as a build-to-suit for the tenant, the building contains office and lab space. The tenant's focus is on seed and crop protection solutions for the agriculture industry. SEGMENT DESIGNATION MARKET INFORMATION Region Midwest Market Des Moines Submarket Western Suburbs Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. Corteva Agriscience 8501 NW 62nd Ave Johnston, IA 50131 PROPERTY OVERVIEW TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Corteva Agriscience A % Leased by Major Lessee 100% Major Lessee SQFT 184,300 Industry (Major Tenant) Materials Lease Type Net % of Total ABR (Property) 1.4% Property WALT 3.9 years BUILDING INFORMATION Detailed Property Type Office/Lab Square Feet 184,300 Total Property % Leased 100% FAR 0.29 Year Built 2014 Year Renovated N/A Stories 2 Parking Ratio (per 1,000 SF) 3.6 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 36 Property of Peakstone Realty Trust
Portfolio Segment Office Office/Lab/R&D facility for Keurig Dr. Pepper. Class "A" building with approximately 50,000 sf of office space, 40,000 sf of lab space, and 60,000 sf of warehouse research and design space. The building contains 6,000 amps power, 22' clear heights in the warehouse R&D space, and other specialized infrastructure to support the lab functions. SEGMENT DESIGNATION MARKET INFORMATION Region Northeast Market Boston Submarket Route 128 North Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. Keurig Dr. Pepper (63 South Avenue) 63 South Avenue Burlington, MA 01803 PROPERTY OVERVIEW TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Keurig Dr. Pepper BBB % Leased by Major Lessee 100% Major Lessee SQFT 150,700 Industry (Major Tenant) Food, Beverage & Tobacco Lease Type Net % of Total ABR (Property) 1.3% Property WALT 6.9 years BUILDING INFORMATION Detailed Property Type Office/Lab/R&D Square Feet 150,700 Total Property % Leased 100% FAR 0.58 Year Built 2013 Year Renovated N/A Stories 2 Parking Ratio (per 1,000 SF) 1.8 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 37 Property of Peakstone Realty Trust
LPL (1040 LPL Way) 1040 LPL Way Fort Mill, SC 29175 Portfolio Segment Office MARKET INFORMATION Region Southeast Market Charlotte Submarket York County Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. PROPERTY OVERVIEW SEGMENT DESIGNATION The property is one of two adjacent buildings developed as a build-to-suit for LPL and serves as the largest of its four primary U.S. office locations. Asset is located in a thriving mixed-use development with walkable retail, lodging, and excellent accessibility to Interstate 77. TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant LPL Baa3 % Leased by Major Lessee 100% Major Lessee SQFT 144,400 Industry (Major Tenant) Diversified Financials Lease Type Net % of Total ABR (Property) 1.3% Property WALT 13.8 years BUILDING INFORMATION Detailed Property Type Office Square Feet 144,400 Total Property % Leased 100% FAR 1.02 Year Built 2016 Year Renovated N/A Stories 6 Parking Ratio (per 1,000 SF) 4.2 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 38 Property of Peakstone Realty Trust
Toshiba TEC 3901 South Miami Boulevard Durham, NC 27709 Portfolio Segment Office Region Southeast Market Raleigh/Durham Submarket RTP Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. Corporate headquarters for Toshiba Global Commerce Solutions, a subsidiary of Toshiba Tec Corporation, which provides integrated in-store solutions for retailers globally. Building features include an expanded lobby with a "Solutions Showcase" highlighting the tenant's latest product innovations. Property's location is immediately adjacent to Research Triangle Park, the largest research park in the United States. SEGMENT DESIGNATION MARKET INFORMATION PROPERTY OVERVIEW TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Toshiba TEC BB+ % Leased by Major Lessee 100% Major Lessee SQFT 200,800 Industry (Major Tenant) Technology Hardware & Equipment Lease Type Net % of Total ABR (Property) 1.2% Property WALT 5.3 years BUILDING INFORMATION Detailed Property Type Office Square Feet 200,800 Total Property % Leased 100% FAR 0.19 Year Built 1999 Year Renovated 2016 Stories 4 Parking Ratio (per 1,000 SF) 4.4 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 39 Property of Peakstone Realty Trust
Portfolio Segment Office Corporate headquarters for Mercury Systems, a leading provider of mission-critical technology solutions for the global aerospace and defense industry. Contains SCIF's, R&D labs, and other secure areas. SEGMENT DESIGNATION MARKET INFORMATION Region Northeast Market Boston Submarket Andover Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. Mercury Systems 50 Minuteman Road Andover, MA 01810 PROPERTY OVERVIEW TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Mercury Systems IG8 % Leased by Major Lessee 100% Major Lessee SQFT 145,300 Industry (Major Tenant) Capital Goods Lease Type Net % of Total ABR (Property) 1.2% Property WALT 9.3 years BUILDING INFORMATION Detailed Property Type Office/Lab Square Feet 145,300 Total Property % Leased 100% FAR 0.24 Year Built 1997 Year Renovated N/A Stories 3 Parking Ratio (per 1,000 SF) 3.5 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 40 Property of Peakstone Realty Trust
Portfolio Segment Office Specialized facility for Occidental Petroleum housing the company’s Integrated Operating Center for oil and gas production in the DJ Basin. The on-site antennae gather “real time” data from the company's wells in the field. Property is located in Weld County, which is responsible for roughly 83% of the state’s crude oil production as well as 52% of the natural gas production. SEGMENT DESIGNATION MARKET INFORMATION Region West Market Platteville Submarket Weld County Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. Occidental Petroleum 501 North Division Street Platteville, CO 80651 PROPERTY OVERVIEW TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Occidental Petroleum BB+ % Leased by Major Lessee 100% Major Lessee SQFT 114,500 Industry (Major Tenant) Energy Lease Type Net % of Total ABR (Property) 1.1% Property WALT 10.8 years BUILDING INFORMATION Detailed Property Type Office Square Feet 114,500 Total Property % Leased 100% FAR 0.18 Year Built 2013 Year Renovated N/A Stories 2 Parking Ratio (per 1,000 SF) 4.7 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 41 Property of Peakstone Realty Trust
Portfolio Segment Office Corporate headquarters for Avnet, a technology solutions company focused on marketing, selling, and distributing electronic components. The property has excellent access along Highway 143 and is located less than three miles from Phoenix Sky Harbor International Airport. SEGMENT DESIGNATION MARKET INFORMATION Region Southwest Market Phoenix Submarket Airport Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. Avnet (Phoenix) 2211 S 47th Street Phoenix, AZ 85034 PROPERTY OVERVIEW TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Avnet BBB- % Leased by Major Lessee 100% Major Lessee SQFT 176,400 Industry (Major Tenant) Technology Hardware & Equipment Lease Type Net % of Total ABR (Property) 1.0% Property WALT 3.7 years BUILDING INFORMATION Detailed Property Type Office Square Feet 176,400 Total Property % Leased 100% FAR 0.36 Year Built 1997 Year Renovated N/A Stories 2 Parking Ratio (per 1,000 SF) 5.8 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 42 Property of Peakstone Realty Trust
PPG 400 Bertha Lamme Drive Cranberry Township, PA 16066 Portfolio Segment Office MARKET INFORMATION Region Northeast Market Pittsburgh Submarket Butler County Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. PROPERTY OVERVIEW SEGMENT DESIGNATION The property serves as PPG Paints' Architectural Coatings regional headquarters. Excellent access to Interstate 79 via the Highway 228 interchange and located within the Cranberry Woods Office Park, considered to be Western Pennsylvania's premier business address location. TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant PPG A3 % Leased by Major Lessee 100% Major Lessee SQFT 118,000 Industry (Major Tenant) Retailing Lease Type Net % of Total ABR (Property) 1.0% Property WALT 8.0 years BUILDING INFORMATION Detailed Property Type Office Square Feet 118,000 Total Property % Leased 100% FAR 0.11 Year Built 2010 Year Renovated N/A Stories 3 Parking Ratio (per 1,000 SF) 5.0 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 43 Property of Peakstone Realty Trust
Portfolio Segment Office MARKET INFORMATION Corporate headquarters for MISO (Midcontinent Independent System Operator). The building is connected via skyway to MISO's mission-critical control center where the company manages the flow of high-voltage electricity for 45 million customers across 15 U.S. states and the Canadian province of Manitoba. Located in the highly desirable submarket of Carmel. SEGMENT DESIGNATION Region Midwest Market Indianapolis Submarket North Meridian/Carmel Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. MISO 720 City Center Drive Carmel, IN 46032 PROPERTY OVERVIEW TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant MISO AA- % Leased by Major Lessee 100% Major Lessee SQFT 133,400 Industry (Major Tenant) Utilities Lease Type Net % of Total ABR (Property) 1.0% Property WALT 5.3 years BUILDING INFORMATION Detailed Property Type Office Square Feet 133,400 Total Property % Leased 100% FAR 0.39 Year Built 2008 Year Renovated 2016 Stories 3 Parking Ratio (per 1,000 SF) 4.5 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 44 Property of Peakstone Realty Trust
Amentum (Heritage III) 13500 Heritage Parkway Fort Worth, TX 76177 Portfolio Segment Office MARKET INFORMATION Region Southwest Market Dallas/Fort Worth Submarket Alliance Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. (2) Lease restricts certain disclosures. PROPERTY OVERVIEW SEGMENT DESIGNATION The property is leased to Amentum. The Class "A" building is located in close proximity to Perot Field Fort Worth Alliance Airport. TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Amentum DS1 % Leased by Major Lessee 100% Major Lessee SQFT 119,000 Industry (Major Tenant) Software & Services Lease Type Net % of Total ABR (Property) 0.9% Property WALT(2) - BUILDING INFORMATION Detailed Property Type Office Square Feet 119,000 Total Property % Leased 100% FAR 0.30 Year Built 2006 Year Renovated N/A Stories 2 Parking Ratio (per 1,000 SF) 4.9 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 45 Property of Peakstone Realty Trust
Portfolio Segment Office North American headquarters for Draeger Medical Systems, a division of Draegerwerks AG, a leading international manufacturer of medical and safety technology products. Property is utilized as a design, development and manufacturing facility for the tenant's patient monitoring product line. SEGMENT DESIGNATION MARKET INFORMATION Region Northeast Market Boston Submarket Andover Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. Draeger Medical Systems Six Tech Drive Andover, MA 01810 PROPERTY OVERVIEW TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Draeger Medical Systems IG8 % Leased by Major Lessee 100% Major Lessee SQFT 128,400 Industry (Major Tenant) Health Care Equipment & Services Lease Type Net % of Total ABR (Property) 0.9% Property WALT 8.5 years BUILDING INFORMATION Detailed Property Type Office/Lab Square Feet 128,400 Total Property % Leased 100% FAR 0.22 Year Built 1984 Year Renovated 2020 Stories 2 Parking Ratio (per 1,000 SF) 3.4 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 46 Property of Peakstone Realty Trust
Portfolio Segment Office The property is leased to a subsidiary of Fresenius Medical Care. Fresenius Medical Care is a healthcare company that provides healthcare professionals with products and solutions for patients with renal failure and chronic kidney disease through a network of outpatient dialysis centers. Class "A" asset located in Tyler, a growing and affluent outer suburb of Dallas. MARKET INFORMATION SEGMENT DESIGNATION Region Southwest Market Tyler Submarket Smith County Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. Fresenius Medical Care 3355 Earl Campbell Pkwy Tyler, TX 75701 PROPERTY OVERVIEW TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Fresenius Medical Care Baa3 % Leased by Major Lessee 100% Major Lessee SQFT 81,000 Industry (Major Tenant) Health Care Equipment & Services Lease Type Net % of Total ABR (Property) 0.8% Property WALT 8.8 years BUILDING INFORMATION Detailed Property Type Office Square Feet 81,000 Total Property % Leased 100% FAR 0.21 Year Built 2016 Year Renovated N/A Stories 2 Parking Ratio (per 1,000 SF) 7.0 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 47 Property of Peakstone Realty Trust
Portfolio Segment Office SEGMENT DESIGNATION MARKET INFORMATION The property is leased to Cigna. Developed as a build-to-suit for Cigna in 2012. Tenant recently renewed its lease in 2021 for 5 years. Region Southeast Market Nashville Submarket MetroCenter Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. Cigna (500 Great Circle Road) 500 Great Circle Road Nashville, TN 37228 PROPERTY OVERVIEW TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Cigna A- % Leased by Major Lessee 100% Major Lessee SQFT 72,200 Industry (Major Tenant) Health Care Equipment & Services Lease Type Net % of Total ABR (Property) 0.7% Property WALT 4.5 years BUILDING INFORMATION Detailed Property Type Office Square Feet 72,200 Total Property % Leased 100% FAR 0.19 Year Built 2012 Year Renovated N/A Stories 1 Parking Ratio (per 1,000 SF) 5.8 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 48 Property of Peakstone Realty Trust
Portfolio Segment Office The property is leased to Express Scripts. Constructed as a build-to-suit and designed specifically for call center and data center operations, with large, open floor plans that can accommodate a significant number of employee work stations. SEGMENT DESIGNATION MARKET INFORMATION Region Northeast Market Pittsburgh Submarket Parkway East Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. Cigna (Express Scripts) 501 Ronda Court North Huntingdon, PA 15642 PROPERTY OVERVIEW TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Express Scripts BBB+ % Leased by Major Lessee 100% Major Lessee SQFT 70,500 Industry (Major Tenant) Health Care Equipment & Services Lease Type Net % of Total ABR (Property) 0.7% Property WALT 2.5 years BUILDING INFORMATION Detailed Property Type Office/Data Center Square Feet 70,500 Total Property % Leased 100% FAR 0.11 Year Built 2015 Year Renovated N/A Stories 1 Parking Ratio (per 1,000 SF) 9.0 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 49 Property of Peakstone Realty Trust
AT&T (14500 NE 87th Street) 14500 NE 87th Street Redmond, WA 98052 Portfolio Segment Office MARKET INFORMATION Region West Market Seattle/Puget Sound Submarket Redmond Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. PROPERTY OVERVIEW SEGMENT DESIGNATION Mission-critical facility for AT&T consisting of data center, lab, and office space. Strategically located adjacent to Sammamish Electricity Substation. Tenant has invested substantial capital into the property (property consists of 14500, 14520, and 14560 NE 87th Street) creating a mission-critical data center and R&D/engineering hub. TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant AT&T BBB+ % Leased by Major Lessee 100% Major Lessee SQFT 60,000 Industry (Major Tenant) Telecommunication Services Lease Type Net % of Total ABR (Property) 0.7% Property WALT 4.7 years BUILDING INFORMATION Detailed Property Type Office/Data Center Square Feet 60,000 Total Property % Leased 100% FAR 0.43 Year Built 1995 Year Renovated N/A Stories 2 Parking Ratio (per 1,000 SF) 3.0 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 50 Property of Peakstone Realty Trust
AT&T (14520 NE 87th Street) 14520 NE 87th Street Redmond, WA 98052 Portfolio Segment Office MARKET INFORMATION Region West Market Seattle/Puget Sound Submarket Redmond Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. PROPERTY OVERVIEW SEGMENT DESIGNATION Mission-critical facility for AT&T consisting of data center, lab, and office space. Strategically located adjacent to Sammamish Electricity Substation. Tenant has invested substantial capital into the property (property consists of 14500, 14520, and 14560 NE 87th Street) creating a mission-critical data center and R&D/engineering hub. TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant AT&T BBB+ % Leased by Major Lessee 100% Major Lessee SQFT 59,800 Industry (Major Tenant) Telecommunication Services Lease Type Net % of Total ABR (Property) 0.6% Property WALT 4.7 years BUILDING INFORMATION Detailed Property Type Office/Data Center Square Feet 59,800 Total Property % Leased 100% FAR 0.43 Year Built 1995 Year Renovated N/A Stories 2 Parking Ratio (per 1,000 SF) 3.0 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 51 Property of Peakstone Realty Trust
Parallon 6451 126th Avenue North Largo, FL 33773 Portfolio Segment Office MARKET INFORMATION Region Southeast Market Tampa Submarket Mid-Pinellas Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. PROPERTY OVERVIEW SEGMENT DESIGNATION The property is leased to a subsidiary of HCA Healthcare. HCA Healthcare provides health care services through its general and acute hospital operations which offer medical and surgical services. TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Parallon BBB- % Leased by Major Lessee 100% Major Lessee SQFT 83,200 Industry (Major Tenant) Health Care Equipment & Services Lease Type Net % of Total ABR (Property) 0.6% Property WALT 2.2 years BUILDING INFORMATION Detailed Property Type Office Square Feet 83,200 Total Property % Leased 100% FAR 0.22 Year Built 2013 Year Renovated N/A Stories 1 Parking Ratio (per 1,000 SF) 7.6 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 52 Property of Peakstone Realty Trust
Portfolio Segment Office The property is leased to Tech Data. Tech Data is one of the world's largest technology distributors also offering a wide range of technical and business support services. SEGMENT DESIGNATION MARKET INFORMATION Region Southwest Market San Antonio Submarket Far North Central Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. Tech Data 19031 Ridgewood Parkway San Antonio, TX 78259 PROPERTY OVERVIEW TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Tech Data BBB- % Leased by Major Lessee 100% Major Lessee SQFT 58,000 Industry (Major Tenant) Technology Hardware & Equipment Lease Type Net % of Total ABR (Property) 0.5% Property WALT 1.9 years BUILDING INFORMATION Detailed Property Type Office Square Feet 58,000 Total Property % Leased 100% FAR 0.27 Year Built 2014 Year Renovated N/A Stories 2 Parking Ratio (per 1,000 SF) 4.1 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 53 Property of Peakstone Realty Trust
Rapiscan Systems 23 Frontage Road Andover, MA 01810 Portfolio Segment Office MARKET INFORMATION Region Northeast Market Boston Submarket Route 495 Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. PROPERTY OVERVIEW SEGMENT DESIGNATION Property is leased to Rapiscan Systems. Rapiscan Systems manufactures security equipment and systems designed for checkpoints, cargo, vehicle, baggage, parcel, and air cargo security inspection. The property has excellent access to Interstate 93. TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Rapiscan Systems IG3 % Leased by Major Lessee 100% Major Lessee SQFT 64,200 Industry (Major Tenant) Capital Goods Lease Type Net % of Total ABR (Property) 0.4% Property WALT 4.4 years BUILDING INFORMATION Detailed Property Type Office/Lab Square Feet 64,200 Total Property % Leased 100% FAR 0.34 Year Built 1984 Year Renovated 2014 Stories 2 Parking Ratio (per 1,000 SF) 3.7 Industrial Property Stats: Trailer Parking Spaces 0 Loading Docks 2 Type of Docks (cross, rear, etc.) Rear Clear Height N/A 54 Property of Peakstone Realty Trust
Portfolio Segment Office The property is 100% leased to two tenants, Blue Force Technologies and Ultra Electronics Ocean Systems. Blue Force, a firm specializing in design, fabrication and manufacturing of aerospace and defense systems, leases 51% of the property. Ultra Electronics, a leading supplier to the US Navy, providing acoustic and sonar systems, torpedo defense and radar sensor solutions, leases 49% of the property. SEGMENT DESIGNATION MARKET INFORMATION Region Southeast Market Raleigh/Durham Submarket Wake Forest Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. (2) Major Lessee based on Tenant ABR. 136 & 204 Capcom 136 & 204 Capcom Avenue Wake Forest, NC 27587 PROPERTY OVERVIEW TENANT AND PROPERTY INFORMATION Tenancy Type Multi-Tenant Credit(1) Tenant Ultra Electronics Ocean Systems HY1 % Leased by Major Lessee(2) 49% Major Lessee SQFT 31,000 Industry (Major Tenant) Capital Goods Lease Type Net % of Total ABR (Property) 0.4% Property WALT 3.2 years BUILDING INFORMATION Detailed Property Type Office/R&D Square Feet 63,000 Total Property % Leased 100% FAR 0.24 Year Built 2010 Year Renovated N/A Stories 2 Parking Ratio (per 1,000 SF) 2.7 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 55 Property of Peakstone Realty Trust
AT&T (14560 NE 87th Street) 14560 NE 87th Street Redmond, WA 98052 Portfolio Segment Office MARKET INFORMATION Region West Market Seattle/Puget Sound Submarket Redmond Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. PROPERTY OVERVIEW SEGMENT DESIGNATION Mission-critical facility for AT&T consisting of data center and office space. Strategically located adjacent to Sammamish Electricity Substation. Tenant has invested substantial capital into the property (property consists of 14500, 14520, and 14560 NE 87th Street) creating a mission-critical data center and R&D/engineering hub. TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant AT&T BBB+ % Leased by Major Lessee 100% Major Lessee SQFT 36,000 Industry (Major Tenant) Telecommunication Services Lease Type Net % of Total ABR (Property) 0.4% Property WALT 4.7 years BUILDING INFORMATION Detailed Property Type Office/Data Center Square Feet 36,000 Total Property % Leased 100% FAR 0.43 Year Built 1995 Year Renovated N/A Stories 2 Parking Ratio (per 1,000 SF) 3.0 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 56 Property of Peakstone Realty Trust
Portfolio Segment Office SEGMENT DESIGNATION MARKET INFORMATION Upon the estimated commencement date of January 1, 2024, the property will serve as the corporate headquarters for a confidential healthcare laboratory company. Tenant's buildout will include numerous labs in addition to office space. Region Southeast Market Nashville Submarket Metro Center Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. (2) Lease restricts certain disclosures. 530 Great Circle Road 530 Great Circle Road Nashville, TN 37228 PROPERTY OVERVIEW TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant(2) - HY6 % Leased by Major Lessee 100% Major Lessee SQFT 98,400 Industry (Major Tenant) Health Care Equipment & Services Lease Type Net % of Total ABR (Property) 0.0% Property WALT(2) - BUILDING INFORMATION Detailed Property Type Office/Lab Square Feet 98,400 Total Property % Leased 100% FAR 0.19 Year Built 2011 Year Renovated N/A Stories 1 Parking Ratio (per 1,000 SF) 5.8 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 57 Property of Peakstone Realty Trust
Other Segment Property Summaries
Wyndham Hotels & Resorts 22 Sylvan Way Parsippany, NJ 07054 Portfolio Segment Other MARKET INFORMATION Region Northeast Market Northern New Jersey Submarket Parsippany Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. PROPERTY OVERVIEW SEGMENT DESIGNATION Global headquarters for Wyndham Hotels & Resorts. Asset is located in the desirable Parsippany, NJ office market with excellent accessibility to Interstate 287. Property features an above standard amenity package that was designed to emulate the amenities found in 5-star Wyndham hotels. TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Wyndham Hotels & Resorts BB- % Leased by Major Lessee 100% Major Lessee SQFT 249,400 Industry (Major Tenant) Consumer Services Lease Type Net % of Total ABR (Property) 3.4% Property WALT 6.7 years BUILDING INFORMATION Detailed Property Type Office Square Feet 249,400 Total Property % Leased 100% FAR 0.25 Year Built 2009 Year Renovated N/A Stories 3 Parking Ratio (per 1,000 SF) 4.0 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 58 Property of Peakstone Realty Trust
Wood Group (Westgate II) 17320 Katy Freeway Houston, TX 77094 Portfolio Segment Other MARKET INFORMATION Region Southwest Market Houston Submarket Energy Corridor Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. PROPERTY OVERVIEW SEGMENT DESIGNATION The property is leased to Wood Group. Located in the Energy Corridor submarket of Houston along Interstate 10 midway between Beltway 8 and the Grand Parkway. TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Wood Group HY6 % Leased by Major Lessee 100% Major Lessee SQFT 186,300 Industry (Major Tenant) Energy Lease Type Net % of Total ABR (Property) 2.1% Property WALT 1.3 years BUILDING INFORMATION Detailed Property Type Office Square Feet 186,300 Total Property % Leased 100% FAR 0.62 Year Built 2014 Year Renovated N/A Stories 4 Parking Ratio (per 1,000 SF) 4.4 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 59 Property of Peakstone Realty Trust
Schlumberger 1200 Enclave Parkway Houston, TX 77077 Portfolio Segment Other MARKET INFORMATION Region Southwest Market Houston Submarket Energy Corridor Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. (2) Lease restricts certain disclosures. PROPERTY OVERVIEW SEGMENT DESIGNATION The property is leased to Schlumberger. Located in the Energy Corridor submarket of Houston with immediate access off of Enclave Parkway which connects to the area's major north-south thoroughfare, Eldridge Parkway. TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Schlumberger A % Leased by Major Lessee 97% Major Lessee SQFT 144,600 Industry (Major Tenant) Energy Lease Type Net % of Total ABR (Property) 1.7% Property WALT(2) - BUILDING INFORMATION Detailed Property Type Office Square Feet 149,700 Total Property % Leased 98% FAR 0.64 Year Built 1999 Year Renovated N/A Stories 6 Parking Ratio (per 1,000 SF) 5.0 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 60 Property of Peakstone Realty Trust
Level 3 (ParkRidge One) 10475 Park Meadows Drive Lone Tree, CO 80124 Portfolio Segment Other MARKET INFORMATION Region West Market Denver Submarket Lone Tree Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. (2) Lease restricts certain disclosures. PROPERTY OVERVIEW SEGMENT DESIGNATION The property is leased to Level 3. Property has excellent access to Interstate 25 via Lincoln Ave. interchange and is located less than one mile north of the Sky Ridge Station light rail stop. TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Level 3 BB % Leased by Major Lessee 100% Major Lessee SQFT 166,700 Industry (Major Tenant) Telecommunication Services Lease Type Base Year % of Total ABR (Property) 1.6% Property WALT(2) - BUILDING INFORMATION Detailed Property Type Office Square Feet 166,700 Total Property % Leased 100% FAR 0.38 Year Built 1999 Year Renovated N/A Stories 6 Parking Ratio (per 1,000 SF) 4.1 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 61 Property of Peakstone Realty Trust
Raytheon Technologies 2730 West Tyvola Road Charlotte, NC 28217 Portfolio Segment Other MARKET INFORMATION Region Southeast Market Charlotte Submarket Airport Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. (2) Lease restricts certain disclosures. PROPERTY OVERVIEW SEGMENT DESIGNATION The property is leased to Raytheon Technologies and serves as the headquarters for Raytheon's Collins Aerospace business unit. Located in the 65 acre Coliseum Centre office park with six multistory office buildings. Coliseum Centre is less than five miles from Charlotte Douglass International Airport and includes best-in-class construction, landscaping, and tenancy. TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Raytheon Technologies A- % Leased by Major Lessee 100% Major Lessee SQFT 198,900 Industry (Major Tenant) Capital Goods Lease Type Net % of Total ABR (Property) 1.5% Property WALT(2) - BUILDING INFORMATION Detailed Property Type Office Square Feet 198,900 Total Property % Leased 100% FAR 0.36 Year Built 1999 Year Renovated N/A Stories 6 Parking Ratio (per 1,000 SF) 4.1 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 62 Property of Peakstone Realty Trust
Hitachi Energy 500 West Highway 94 Jefferson City, MO 65101 Portfolio Segment Other MARKET INFORMATION Region Midwest Market Jefferson City Submarket Jefferson City Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. PROPERTY OVERVIEW SEGMENT DESIGNATION Manufacturing facility for Hitachi Energy (formerly ABB) for the production of power transformers, switchgear, and related components and parts. The property is designed and equipped with extensive above-standard infrastructure, including high-capacity cranes, robotics, and computerized machinery necessary to manufacture large capacity power transformers. The facility is designed to run virtually non-stop (closing down only for scheduled maintenance). TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Hitachi Energy USA A- % Leased by Major Lessee 100% Major Lessee SQFT 660,000 Industry (Major Tenant) Capital Goods Lease Type Net % of Total ABR (Property) 1.3% Property WALT 1.7 years BUILDING INFORMATION Detailed Property Type Manufacturing Square Feet 660,000 Total Property % Leased 100% FAR 0.16 Year Built 1972 Year Renovated N/A Stories 1 Parking Ratio (per 1,000 SF) 1.4 Industrial Property Stats: Trailer Parking Spaces 0 Loading Docks 12 Type of Docks (cross, rear, etc.) Rear Clear Height 25' 63 Property of Peakstone Realty Trust
Avnet (Chandler) 6700 West Morelos Place Chandler, AZ 85226 Portfolio Segment Other MARKET INFORMATION Region Southwest Market Phoenix Submarket Chandler Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. (2) Lease restricts certain disclosures. PROPERTY OVERVIEW SEGMENT DESIGNATION Headquarters and logistics facility for Avnet Integrated, a business unit of Avnet. Tenant utilizes property as an R&D and assembly facility for its hardware and software products. Excellent access to Interstate 10 via the Loop 202 interchange. TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Avnet BBB- % Leased by Major Lessee 100% Major Lessee SQFT 231,500 Industry (Major Tenant) Technology Hardware & Equipment Lease Type Net % of Total ABR (Property) 1.3% Property WALT(2) - BUILDING INFORMATION Detailed Property Type Industrial/R&D Square Feet 231,500 Total Property % Leased 100% FAR 0.40 Year Built 2008 Year Renovated N/A Stories 2 Parking Ratio (per 1,000 SF) 2.1 Industrial Property Stats: Trailer Parking Spaces 0 Loading Docks 14 Type of Docks (cross, rear, etc.) Rear Clear Height 35' 64 Property of Peakstone Realty Trust
Franklin Center 6841 Benjamin Franklin Drive Columbia, MD 21046 Portfolio Segment Other MARKET INFORMATION Region Northeast Market Baltimore Submarket Columbia South Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. PROPERTY OVERVIEW SEGMENT DESIGNATION The property is currently 55% leased to two tenants. Leidos, the primary tenant, utilizes the property to serve various government contracts and its space contains SCIF's and other secure areas. Prominent visibility along Interstate 95. TENANT AND PROPERTY INFORMATION Tenancy Type Multi-Tenant Credit(1) Tenant Leidos BBB- % Leased by Major Lessee 54% Major Lessee SQFT 110,300 Industry (Major Tenant) Software & Services Lease Type Base Year + E % of Total ABR (Property) 1.2% Property WALT 3.6 years BUILDING INFORMATION Detailed Property Type Office Square Feet 202,500 Total Property % Leased 55% FAR 0.31 Year Built 2008 Year Renovated N/A Stories 7 Parking Ratio (per 1,000 SF) 4.9 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 65 Property of Peakstone Realty Trust
Portfolio Segment Other Located in the Cummings Research Park, a 3,843 acre office campus with nearly 6.4 million sf of existing buildings. Huntsville is home to NASA’s Marshall Space Flight Center and the US Army Aviation and Missile Command as well as numerous engineering, space, and defense companies in Cummings Research Park. SEGMENT DESIGNATION MARKET INFORMATION Region Southeast Market Huntsville Submarket Cummins Research Park Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. KBR 345 Bob Heath Drive Huntsville, AL 35806 PROPERTY OVERVIEW TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant KBR BB % Leased by Major Lessee 100% Major Lessee SQFT 120,000 Industry (Major Tenant) Commercial & Professional Services Lease Type Base Year % of Total ABR (Property) 1.0% Property WALT 0.7 years BUILDING INFORMATION Detailed Property Type Office Square Feet 120,000 Total Property % Leased 100% FAR 0.20 Year Built 2013 Year Renovated N/A Stories 3 Parking Ratio (per 1,000 SF) 3.5 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 66 Property of Peakstone Realty Trust
30 Independence 30 Independence Boulevard Warren, NJ 07059 Portfolio Segment Other MARKET INFORMATION Region Northeast Market Northern New Jersey Submarket Route 78 East Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. PROPERTY OVERVIEW SEGMENT DESIGNATION The property is currently 52% leased to six tenants. Asset recently went through a renovation which led to the procurement of six leases totaling 107,700 SF. Excellent access to Interstate 78 via the Liberty Corner Rd. interchange. TENANT AND PROPERTY INFORMATION Tenancy Type Multi-Tenant Credit(1) Tenant Bohler Engineering N/A % Leased by Major Lessee 17% Major Lessee SQFT 34,500 Industry (Major Tenant) Capital Goods Lease Type Base Year + E % of Total ABR (Property) 0.8% Property WALT 8.4 years BUILDING INFORMATION Detailed Property Type Office Square Feet 207,300 Total Property % Leased 52% FAR 0.15 Year Built 1997 Year Renovated 2020 Stories 6 Parking Ratio (per 1,000 SF) 3.7 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 67 Property of Peakstone Realty Trust
Northrop Grumman 4065 Colonel Glenn Highway Beavercreek, OH 45431 Portfolio Segment Other MARKET INFORMATION Region Midwest Market Cincinnati/Dayton Submarket East Dayton Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. PROPERTY OVERVIEW SEGMENT DESIGNATION Developed as a build-to-suit for Northrop Grumman in 2012. Key location for Northrop Grumman to serve contracts associated with Wright-Patterson Air Force Base, located approximately six miles from the property. Contains SCIF's and other secure areas. TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Northrop Grumman Baa1 % Leased by Major Lessee 100% Major Lessee SQFT 99,200 Industry (Major Tenant) Capital Goods Lease Type Net % of Total ABR (Property) 0.8% Property WALT 1.7 years BUILDING INFORMATION Detailed Property Type Office Square Feet 99,200 Total Property % Leased 100% FAR 0.34 Year Built 2012 Year Renovated N/A Stories 3 Parking Ratio (per 1,000 SF) 3.8 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 68 Property of Peakstone Realty Trust
Portfolio Segment Other SEGMENT DESIGNATION MARKET INFORMATION The property is leased to MGM Resorts. Located adjacent to Harry Reid International Airport, one of the busiest airports in the United States. Houses several executive offices. Region Southwest Market Las Vegas Submarket South Las Vegas Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. MGM Corporate Center (880 Grier Drive) 880 Grier Drive Las Vegas, NV 89119 PROPERTY OVERVIEW TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant MGM B+ % Leased by Major Lessee 100% Major Lessee SQFT 81,000 Industry (Major Tenant) Consumer Services Lease Type Base Year % of Total ABR (Property) 0.6% Property WALT 1.7 years BUILDING INFORMATION Detailed Property Type Office Square Feet 81,000 Total Property % Leased 100% FAR 0.34 Year Built 1988 Year Renovated N/A Stories 2 Parking Ratio (per 1,000 SF) 4.1 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 69 Property of Peakstone Realty Trust
Hitachi Astemo 9296 Intermodal North Court Columbus, OH 43217 Portfolio Segment Other MARKET INFORMATION Region Midwest Market Columbus Submarket Southeast Columbus Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. PROPERTY OVERVIEW SEGMENT DESIGNATION Distribution facility for Hitachi Astemo for various automotive and motorcycle parts. Strategically located less than one mile from the Rickenbacker Airport and Norfolk Southern Intermodal in a loaded-to-capacity container zone which allows the tenant to receive overweight shipping containers from Asia and transport them directly to the property. TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Hitachi Astemo A % Leased by Major Lessee 100% Major Lessee SQFT 304,600 Industry (Major Tenant) Automobiles & Components Lease Type Net % of Total ABR (Property) 0.6% Property WALT 2.2 years BUILDING INFORMATION Detailed Property Type Warehouse Square Feet 304,600 Total Property % Leased 100% FAR 0.26 Year Built 2014 Year Renovated N/A Stories 1 Parking Ratio (per 1,000 SF) 0.4 Industrial Property Stats: Trailer Parking Spaces 36 Loading Docks 30 Type of Docks (cross, rear, etc.) Cross Clear Height 32' 70 Property of Peakstone Realty Trust
Portfolio Segment Other SEGMENT DESIGNATION MARKET INFORMATION The property is leased to MGM Resorts. Located adjacent to Harry Reid International Airport, one of the busiest airports in the United States. Primary location for MGM’s human resources services, including hiring, new employee training, and on-going employee training. Region Southwest Market Las Vegas Submarket South Las Vegas Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. MGM Corporate Center (840 Grier Drive) 840 Grier Drive Las Vegas, NV 89119 PROPERTY OVERVIEW TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant MGM B+ % Leased by Major Lessee 100% Major Lessee SQFT 60,500 Industry (Major Tenant) Consumer Services Lease Type Base Year % of Total ABR (Property) 0.4% Property WALT 1.7 years BUILDING INFORMATION Detailed Property Type Office Square Feet 60,500 Total Property % Leased 100% FAR 0.37 Year Built 1997 Year Renovated N/A Stories 3 Parking Ratio (per 1,000 SF) 4.2 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 71 Property of Peakstone Realty Trust
Portfolio Segment Other SEGMENT DESIGNATION MARKET INFORMATION The property is leased to the Administrative Office of Pennsylvania Courts ("AOPC"). AOPC supports the entire judicial system for the Commonwealth of Pennsylvania and houses its data center at the property. Region Northeast Market Harrisburg Submarket Harrisburg Area West Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. Administrative Office of Pennsylvania Courts 5035 Ritter Road Mechanicsburg, PA 17055 PROPERTY OVERVIEW TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant AOPC Aa3 % Leased by Major Lessee 100% Major Lessee SQFT 56,600 Industry (Major Tenant) Consumer Services Lease Type Net % of Total ABR (Property) 0.4% Property WALT 1.5 years BUILDING INFORMATION Detailed Property Type Office/Data Center Square Feet 56,600 Total Property % Leased 100% FAR 0.23 Year Built 1988 Year Renovated N/A Stories 1 Parking Ratio (per 1,000 SF) 4.3 Industrial Property Stats: Trailer Parking Spaces 0 Loading Docks 2 Type of Docks (cross, rear, etc.) Rear Clear Height N/A 72 Property of Peakstone Realty Trust
Owens Corning 4535 Enterprise Drive Northwest Concord, NC 28025 Portfolio Segment Other MARKET INFORMATION Region Southeast Market Charlotte Submarket Cabarrus County Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. PROPERTY OVERVIEW SEGMENT DESIGNATION Highly-specialized light manufacturing facility for Owens Corning to produce glass fiber bushings for a variety of key applications. Property has excellent access to Interstate 85 via the Highway 73 interchange. TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant Owens Corning BBB % Leased by Major Lessee 100% Major Lessee SQFT 61,200 Industry (Major Tenant) Capital Goods Lease Type Net % of Total ABR (Property) 0.2% Property WALT 2.0 years BUILDING INFORMATION Detailed Property Type Manufacturing Square Feet 61,200 Total Property % Leased 100% FAR 0.23 Year Built 1998 Year Renovated N/A Stories 1 Parking Ratio (per 1,000 SF) 1.6 Industrial Property Stats: Trailer Parking Spaces 0 Loading Docks 1 Type of Docks (cross, rear, etc.) Rear Clear Height 26' 73 Property of Peakstone Realty Trust
Portfolio Segment Other SEGMENT DESIGNATION MARKET INFORMATION The property is leased to MGM Resorts. Located adjacent to Harry Reid International Airport, one of the busiest airports in the United States. Region Southwest Market Las Vegas Submarket South Las Vegas Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. MGM Corporate Center (950 Grier Drive) 950 Grier Drive Las Vegas, NV 89119 PROPERTY OVERVIEW TENANT AND PROPERTY INFORMATION Tenancy Type Single-Tenant Credit(1) Tenant MGM B+ % Leased by Major Lessee 100% Major Lessee SQFT 26,800 Industry (Major Tenant) Consumer Services Lease Type Net % of Total ABR (Property) 0.1% Property WALT 1.7 years BUILDING INFORMATION Detailed Property Type Office Square Feet 26,800 Total Property % Leased 100% FAR 0.46 Year Built 1989 Year Renovated N/A Stories 1 Parking Ratio (per 1,000 SF) 3.7 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 74 Property of Peakstone Realty Trust
Gold Pointe Corp Ctr Bldg C 11971 Foundation Place Rancho Cordova, CA 95670 Portfolio Segment Other MARKET INFORMATION Region West Market Sacramento Submarket Highway 50 Corridor Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. (2) Building is occupied by a Café/Fitness Center used by the Association. PROPERTY OVERVIEW SEGMENT DESIGNATION Vacant building located in Rancho Cordova, CA. Asset is within the Gold Pointe Corporate Center Office Park and offers highly visible building top signage along Highway 50. TENANT AND PROPERTY INFORMATION Tenancy Type Vacant Credit(1) Tenant N/A N/A % Leased by Major Lessee 0% Major Lessee SQFT 0 Industry (Major Tenant) N/A Lease Type N/A % of Total ABR (Property) 0.0% Property WALT 0.0 years BUILDING INFORMATION Detailed Property Type Office Square Feet 145,900 Total Property % Leased(2) 3% FAR 0.41 Year Built 2002 Year Renovated N/A Stories 3 Parking Ratio (per 1,000 SF) 4.0 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 75 Property of Peakstone Realty Trust
Quebec Court II 5800 South Quebec Street Greenwood Village, CO 80111 Portfolio Segment Other MARKET INFORMATION Region West Market Denver Submarket Greenwood Village Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. PROPERTY OVERVIEW SEGMENT DESIGNATION Vacant building located in Greenwood Village, CO. Greenwood Village submarket is considered one of Denver's premier office hubs and is surrounded by Denver's wealthiest zip codes, providing a strong base of highly skilled workers. Property has excellent access to Interstate 25 via E. Orchard Rd. interchange and is located one half mile west of the Orchard Station light rail stop. TENANT AND PROPERTY INFORMATION Tenancy Type Vacant Credit(1) Tenant N/A N/A % Leased by Major Lessee 0% Major Lessee SQFT 0 Industry (Major Tenant) N/A Lease Type N/A % of Total ABR (Property) 0.0% Property WALT 0.0 years BUILDING INFORMATION Detailed Property Type Office Square Feet 157,300 Total Property % Leased 0% FAR 0.58 Year Built 1980 Year Renovated N/A Stories 4 Parking Ratio (per 1,000 SF) 4.5 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 76 Property of Peakstone Realty Trust
Crosspoint 20022 North 31st Avenue Phoenix, AZ 85027 Portfolio Segment Other MARKET INFORMATION Region Southwest Market Phoenix Submarket Deer Valley Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. (2) Lease restricts certain disclosures. PROPERTY OVERVIEW SEGMENT DESIGNATION The property is currently 8% leased to two tenants. Asset recently went through a renovation which led to the procurement of two leases totaling 27,600 SF. Highly improved building common areas including numerous on-site and walkable amenities. Excellent location near the Interstate 17 and Loop 101 interchange. TENANT AND PROPERTY INFORMATION Tenancy Type Multi-Tenant Credit(1) Tenant First American BBB+ % Leased by Major Lessee 5% Major Lessee SQFT 17,000 Industry (Major Tenant) Insurance Lease Type Net % of Total ABR (Property) 0.0% Property WALT(2) - BUILDING INFORMATION Detailed Property Type Office Square Feet 351,600 Total Property % Leased 8% FAR 0.33 Year Built 1985 Year Renovated 2021 Stories 4 Parking Ratio (per 1,000 SF) 5.5 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 77 Property of Peakstone Realty Trust
Portfolio Segment Other MARKET INFORMATION Vacant building located in Lone Tree, CO. Property has excellent access to Interstate 25 via the Highway 470 interchange and is located less than one mile north of the Lincoln Station light rail stop. SEGMENT DESIGNATION Region West Market Denver Submarket Southeast Denver Notes: Information presented is as of December 31, 2022, unless otherwise noted. (1) Rating is that of tenant, guarantor and/or non-guarantor parent of tenant that has received a rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO rating. Park Meadows Corporate Center II 10002 Park Meadows Drive Lone Tree, CO 80124 PROPERTY OVERVIEW TENANT AND PROPERTY INFORMATION Tenancy Type Vacant Credit(1) Tenant N/A N/A % Leased by Major Lessee 0% Major Lessee SQFT 0 Industry (Major Tenant) N/A Lease Type N/A % of Total ABR (Property) 0.0% Property WALT 0.0 years BUILDING INFORMATION Detailed Property Type Office Square Feet 70,300 Total Property % Leased 0% FAR 0.34 Year Built 2000 Year Renovated N/A Stories 3 Parking Ratio (per 1,000 SF) 4.7 Industrial Property Stats: Trailer Parking Spaces N/A Loading Docks N/A Type of Docks (cross, rear, etc.) N/A Clear Height N/A 78 Property of Peakstone Realty Trust
Exhibit 99.4
Frequently Asked Questions (FAQ)
for
Shareholders of Peakstone Realty Trust (f/k/a Griffin Realty Trust)
Last updated: March 24, 2023
Peakstone Realty Trust (“Peakstone”, “PKST”, “we” or the “Company”) prepared these questions and answers in advance of its intended listing of its common shares on NYSE (the “Listing”). Should you have any additional questions, please contact us at ir@pkst.com. Thank you for your interest and investment in Peakstone.
- When will the Listing of Peakstone’s common shares take place?
The Listing is scheduled to take place on or about April 13, 2023. The completion of the Listing is subject to certain conditions including NYSE approval.
- What is the Company’s intended stock ticker symbol?
PKST
- In advance of the Company’s Listing, do I as a shareholder need to take any proactive steps, or will my shares automatically become listed on the exchange?
No, you do not need to take any specific action. Upon Listing, all our existing classes of common shares will consolidate into a single class of common shares, which class will be listed on the NYSE without shareholders having to take any action.
- Why did the Company choose to list on the NYSE at this particular time?
The Company intends to move forward with the Listing for a variety of reasons, including:
| • | Opportunity for liquidity for existing shareholders |
|---|---|
| • | Ability for investors to retain embedded upside in the portfolio |
| --- | --- |
| • | Potential for Peakstone to gain access to additional sources of capital in the longer-term |
| --- | --- |
| • | Provides an attractive investment opportunity for new investors |
| --- | --- |
- The Company previously announced it would split into two companies and list the company that primarily owned industrial properties on a national securities exchange. What changed?
With the guidance of its financial advisors, Peakstone’s Board of Trustees and management team unanimously determined that pursuing the Listing of the Company (in its entirety) is the best available path in the current market environment to provide liquidity to its shareholders and the opportunity to maximize value over time. This decision is the culmination of a process initiated in 2019 whereby the Company began the evaluation of a comprehensive range of strategic monetization alternatives for the Company and its assets.
- I want to learn more about the Company’s intended strategy and business plan as a publicly traded company. Where can I find more information about that?
On the Company’s website, www.pkst.com, in the Investors section, there is a file labeled “Investor Presentation.” In addition, in the coming days, we intend to post a narrated audio version of the Investor Presentation.
- Beyond the Investor Presentation, where can I find additional information and details regarding the Company and its properties, strategy, management team, etc.?
Additional materials are available on the Company’s website at www.pkst.com, as well as on the SEC’s website www.sec.gov (click Filings, then Company Filing Search, then enter ‘Peakstone Realty Trust’ in the Company and Person Lookup field). This information includes, but is not limited to Forms 10-K, 10-Q, 8-K (including Supplemental Information) and Ownership disclosures.
- Does Peakstone’s management team intend to sell their personally owned shares at, or soon after, the Listing?
No, Peakstone’s management team does not plan to sell shares in connection with the Listing. In addition, in connection with the Listing, Peakstone has adopted formal share ownership guidelines applicable to all executive officers requiring them to achieve and maintain ownership of common shares with a value equal to a multiple of their annual base salary.
- Once Peakstone’s common shares are listed, is there a lock-out period where shareholders will be prohibited from selling their shares?
No, there will not be a lock-out period. All common shares will be eligible for trading on the NYSE upon Listing.
- Once the shares are listed, how would I go about selling some or all of my shares?
All shareholders that hold common shares will have the ability to enter sell orders when the shares commence trading on the NYSE. Shareholders who intend to sell shares should contact their broker or agent that holds their shares to discuss the process for selling their shares.
- Once the shares are listed, how does a shareholder buy additional shares?
Once Peakstone’s common shares commence trading on the NYSE, shareholders can purchase additional shares by placing a buy order through their brokerage account.
- How does the Company plan to communicate with shareholders going forward?
The Company plans to continue using its website (www.pkst.com) as the primary location to post updates. The Company will make available through its website its annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements, and amendments to those reports, as soon as reasonably practicable after such material is electronically filed with, or furnished to, the SEC (also viewable at www.sec.gov). Also, the Company will routinely post important information about its business, operating results and financial condition and prospects, including, for example, information about material acquisitions and dispositions, earnings releases, and copies of investor presentations.
- If I want to stay informed about Company updates but prefer not to check the website regularly, is there a way to sign up to receive this information automatically?
In the next several weeks the Company intends to add the capability on its website to sign up for email notifications; doing so will enable you to automatically receive emails of some or all (based upon your preferences) of the Company’s various updates.
- My most recent account statement shows I own fewer shares while the Net Asset Value (price per share) increased. Please explain what happened.
As the Company announced in a press release on March 10, 2023, in preparation for the Listing of the Company’s shares, Peakstone instituted a reverse share split, effective March 10, 2023, whereby investors received one share for every nine shares previously owned. This share split did not impact your rights as shareholders, your relative percentage ownership of the Company or dividend economics, it just changed the number of shares you own.
- Does the Company plan to continue paying dividends in the future, and if so at what frequency (monthly, quarterly, etc.)?
Peakstone’s Board of Trustees has declared a cash dividend for the month of March 2023 of $0.075 per common share that is payable on May 12, 2023, to holders of record of its common shares on May 2, 2023. While the Company expects to continue paying regular dividends, all dividend decisions (including amount and frequency) will be made by the Board of Trustees.
- How is the company managed?
The Company is internally managed by an experienced team that specializes in industrial and office properties.
- How do I reach someone at Peakstone if I have a question?
There are several options for general inquiries and account-related service assistance, as follows:
Investor Relations: (for issues not related to Transfer Agent matters):
ir@pkst.com
Advisors:
advisorservices@pkst.com
Registered Shareholders:
Computershare (Peakstone’s Transfer Agent) can answer any questions you may have about your shares, account statements, changing your beneficiary designation, requesting tax forms, etc.
800-679-2112 (Monday-Friday 8:30a.m.-6:00p.m Eastern Standard Time)
computershare.com/pkst
PLEASE NOTE COMPUTERSHARE OFFERS ONLINE SELF-SERVICE OPTIONS TO ACCOMPLISH MANY SERVICE REQUESTS. Specifically, Computershare offers robust, easy-to-use online portals for both investors and for financial advisors, and we encourage you to take advantage of those self-service options. To help you better understand those options, Peakstone and Computershare prepared and posted to Peakstone’s website (in the Investors section) a document labeled ‘Transfer Agent Change and Listing-Related Q&A’. In that document you will find a description of the range of actions you can accomplish via these on-line portals, and step-by-step instructions on how to find and fill out paperwork.
Exhibit 99.5
Peakstone Realty Trust Announces Proposed Listing Date on the New York Stock Exchange
Common Shares to List on NYSE under the Symbol PKST
Peakstone Publishes and Files Investor Presentation and Investor Materials
El Segundo, Calif. – March 24, 2023 – Peakstone Realty Trust (“Peakstone” or the “Company”), in anticipation of the intended listing of the Company’s common shares on the New York Stock Exchange (the “Listing”), is pleased to share the extensive information below which should enable existing and potential investors to better understand and value the Company’s high quality portfolio of industrial and office properties, and learn about the team’s strategic plan to grow shareholder value over time.
| 1. | Listing Date/Ticker Symbol: The Company currently anticipates its common shares will commence<br> trading on or about April 13, 2023 under the ticker symbol PKST. In connection with the Listing, all shares of the Company’s classes of common shares, other than the Class E common shares, will automatically convert into Class E common<br> shares in accordance with their terms, and the Class E common shares will be listed and known as Common Shares. |
|---|---|
| 2. | Investor Materials: Today, the Company filed or furnished with the U.S. Securities and Exchange<br> Commission the following: |
| --- | --- |
| • | Investor Presentation discussing the Company’s business plan as a publicly<br> traded company |
| --- | --- |
| • | Earnings and Supplemental information covering the Company’s Fourth Quarter<br> and Full Year 2022 |
| --- | --- |
| • | Annual Report on Form 10-K |
| --- | --- |
| • | Frequently Asked Questions relating to the Company’s intended Listing |
| --- | --- |
All of the documents above are available for review on the Company’s website, www.pkst.com.
There can be no assurance that the Company will be able to complete the Listing in the expected timeframe, or at all.
March Distribution
The Company also announced that its Board of Trustees has declared a cash dividend for the month of March 2023 of $0.075 per common share that is payable on May 12, 2023 to holders of record of its common shares on May 2, 2023. As noted above, the Company currently anticipates that its common shares will be listed before the record date, but if the Listing occurs after the record date, the cash dividend will be paid with respect to each class of the Company’s currently outstanding common shares, with appropriate adjustments for each class.
2023 Annual Shareholders Meeting
The Company intends to hold its 2023 annual meeting of shareholders on June 20, 2023. The date of mailing of the notice for the 2023 annual meeting will be on or about May 1, 2023. Additional details regarding the annual meeting will be included in the Company’s proxy statement for the meeting.
Financial Advisors
Goldman Sachs & Co. LLC and BofA Securities are serving as joint lead financial advisors to the Company in connection with the Listing. Additional financial advisors to the Company include Wells Fargo Securities, Truist Securities, KeyBanc Capital Markets and BMO Capital Markets.
About Peakstone Realty Trust
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 24, 2023, Peakstone’s portfolio consists of 19 million square feet across 24 states in primarily high growth, strategic coastal and sunbelt markets.
Additional information is available at www.pkst.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. 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 press release reflect the Company’s current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause the Company’s 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; the impact of the work-from-home trends; recent and ongoing disruption in the debt and banking markets; occupancy, rent deferrals and the financial condition of the Company’s tenants; whether easing of the pandemic, 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; expected sources of financing and the availability and attractiveness of the terms of any such financing; legislative and regulatory changes that could adversely affect our business; our future capital expenditures, operating expenses, net income, operating income, cash flow and developments and trends of the real estate industry; whether a listing of the Company will be completed; whether any such listing will maximize shareholder value; whether we will be successful in the pursuit of our business plan, including any dispositions; whether we will succeed in our investment objectives; any relationship between the trading price of our common shares at listing and our published net asset value; any fluctuation and/or volatility of the trading price of our common shares once listed; risks associated with our dependence on key personnel whose continued service is not guaranteed; risks related to the disruption of management’s attention from ongoing business operations due to pursuit of requirements related to being a listed company; whether we will comply with Sarbanes-Oxley as required of listed companies; and other factors, including those risks disclosed in Part I, Item 1A. “Risk Factors” and Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the Company’s most recent Annual Report on Form 10-K and Part I, Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the Company’s Quarterly Reports on Form 10-Q filed with the U.S. Securities and Exchange Commission. The Company cautions investors not to place undue reliance on these forward-looking statements and urges you to carefully review the disclosures it makes concerning risks. While forward-looking statements reflect the Company’s 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 press release. Furthermore, the Company disclaims 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.
Our shareholders are cautioned not to place undue reliance on any forward-looking statement in this press release. All forward-looking statements are made as of the date of this press release, and the risk that actual results will differ materially from the expectations expressed in this press release may increase with the passage of time. In light of the significant uncertainties inherent in the forward-looking statements in this press release, the inclusion of such forward-looking statements should not be regarded as a representation by us or any other person that the objectives and plans set forth in this press release will be achieved.
Investor Contact
ir@pkst.com
Advisors Contact
advisorservices@pkst.com
Media Contact
Joele Frank, Wilkinson Brimmer Katcher
Meaghan Repko / Jack Kelleher / Kara Sperry
212.355.4449