PKST Stock Forecast & Price Target

Peakstone Realty Trust demonstrates a robust financial position, highlighted by a manageable leverage ratio of 6.4x, which contributes to a more sustainable capital structure. Additionally, the company's dividend has been appropriately adjusted to align with current earnings, enhancing financial stability. Furthermore, there is significant potential for upside in the stock, especially following the anticipated completion of office asset sales, which could unlock embedded value in the portfolio.

Peakstone Realty Trust is facing significant financial headwinds, as projections indicate an estimated 18% year-over-year decrease in performance for 2025, followed by a substantial 40% decline in 2026. The company also reports persistent net losses from investments in unconsolidated entities, signaling issues with its investment strategy. Furthermore, a high general and administrative (G&A) burden of approximately 20% raises concerns about cash flow efficiency, particularly detrimental for a small-cap REIT like Peakstone.