PKST Stock Forecast & Price Target

Peakstone Realty Trust's balance sheet demonstrates a strengthened financial position, characterized by a leverage ratio of 6.4x and a dividend that has been adjusted to align with current earnings, contributing to a more sustainable capital structure. The company focuses on owning single-tenant industrial and office properties located in high-growth markets, supporting its constructive business outlook. Additionally, there is significant potential for stock appreciation, projected at a minimum of 50%, following the completion of planned office asset sales, which could enhance overall value.

The financial outlook for Peakstone Realty Trust is negatively impacted by an anticipated significant decline in performance, with estimates suggesting an -18% year-over-year decrease in 2025, followed by a steep -40% decline in 2026. Additionally, the company faces challenges stemming from an elevated general and administrative (G&A) burden of approximately 20%, which is notably high for a small-cap REIT and contributes to cash flow leakage. These factors collectively raise concerns about the company's financial stability and future growth potential.