Peakstone Accelerates Industrial Focus
A major portfolio reshaping effort saw Peakstone offload office assets and expand industrial outdoor storage.
November 06, 2025
Peakstone Realty Trust Posts Q3 Gains as Industrial Shift Gains Momentum
Peakstone Realty Trust is making progress on its transition to a focused industrial REIT. In the third quarter of 2025, the company moved further away from its legacy office holdings and doubled down on industrial outdoor storage (IOS)—a category that continues to gain traction within its portfolio.
The financials back up the shift. Peakstone brought in $25.8 million in revenue from continuing operations and delivered $3.5 million in net income attributable to shareholders, or $0.09 per share. Same Store Cash Net Operating Income grew 3.7% year over year to $11.4 million. Adjusted Funds from Operations (AFFO) landed at $0.47 per share , compared to $0.65 in the same quarter last year. While that drop reflects the current transition period, it’s clear the focus is on long-term growth through strategic realignment.
The portfolio changes tell a straightforward story. In Q3 alone, Peakstone sold eight office properties for a combined $247 million. Another four office assets, totaling roughly one million square feet, closed after the quarter for $116 million. As of September 30, all remaining office assets were either sold or listed as held for sale. These properties were reclassified under discontinued operations, aligning with the company’s plan to fully exit the office segment.
At the same time, Peakstone continued to scale its industrial platform. The company picked up three IOS properties in Georgia and Florida for a combined $57.7 million. Each asset was fully leased, with weighted average lease terms ranging from five to nearly ten years. Leasing activity added new revenue streams, with rent increases—particularly on the IOS side—showing meaningful upside. In Norcross, Georgia, for example, the company renewed and added leases that led to a 239% increase in cash rent.
Industrial assets now account for 60% of Peakstone’s annualized base rent. IOS represents nearly a third of that industrial segment. As of quarter-end, the entire industrial portfolio was 100% occupied with a weighted average lease term of 4.7 years —signaling both tenant demand and lease stability across the board.
Peakstone also improved its balance sheet. Total liquidity at the end of the quarter came in at $438 million, supported by $326 million in cash and nearly $112 million in available revolver capacity. Net debt dropped to $724.7 million, bringing leverage down to 5.4x net debt to adjusted EBITDAre. This was enabled by proceeds from recent dispositions, which the company is reinvesting into IOS growth and debt reduction.
The dividend remained consistent, with $0.10 per share paid in Q3 and another $0.10 declared for Q4—scheduled for payment in January 2026. That consistency, even during a portfolio overhaul, reflects a measured approach to capital allocation.
Peakstone isn’t standing still. It’s moving quickly to reshape its footprint, reallocate capital, and optimize income streams. The strategy is playing out in real time, backed by leasing momentum, deliberate acquisitions, and a cleaner balance sheet. As the transition away from office continues, the focus remains on execution—targeted, scalable, and built around industrial outdoor storage.
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