Peakstone Realty TrustPKST
Peakstone Realty Trust Segments Disclosure
Segment Reporting
Segment Profit/(Loss) Measures
Michael Escalante, the Company's Chief Executive Officer, is identified as the chief operating decision maker ("CODM"). The CODM evaluates the Company's portfolio and assesses the ongoing operations and performance of its properties within each reportable segment. The CODM evaluates the performance of each segment based on segment net operating income (“NOI”), which is calculated as net income or loss excluding (to the extent applicable during the periods presented) general and administrative expenses, corporate operating expenses to related parties, impairment of real estate, depreciation and amortization, interest expense, other income, net, gains or losses on early extinguishment of debt, gains or losses on sales of real estate, impairment of goodwill, investment income or loss, transaction expense and net income or loss from discontinued operations and equity in earnings of unconsolidated real estate joint ventures. This measure is used by the CODM to make decisions about resource allocation and evaluate the financial performance of each segment. Segment NOI is not a measure of operating income or cash flows from operating activities, is not indicative of cash available to fund cash needs and should not be considered an alternative to cash flows as a measure of liquidity. Not all companies calculate segment profit measures in the same manner. The Company considers segment NOI to be an appropriate supplemental measure to net income or loss because it assists both investors and management in understanding the core operations of our properties.
Industrial Segment
As of December 31, 2025, the Company’s portfolio consisted of 76 properties within one reportable Industrial segment. The portfolio included 60 IOS properties and 16 Traditional Industrial properties. Of the 76 properties in the Company’s portfolio, 72 were operating properties and four were designated for redevelopment or repositioning.
Office Segment Disposal in 2025
As of December 31, 2025, the Company completed the disposition of all Office segment properties, including the Office Discontinued Operations Properties. Therefore, as of December 31, 2025, the Office segment was eliminated. The Company presented the results of the Office segment through the year ended December 31, 2025, reflecting the Company’s ownership of the Office segment properties during that period. The results of the Office Discontinued Operations Properties have been separately reported within "Net income from discontinued operations" for the years ended December 31, 2025, 2024 and 2023 on the consolidated statement of operations. As such, the Office Discontinued Operations Properties are excluded from NOI metrics (refer to sections below).
Other Segment Disposal in 2024
Prior to December 31, 2024, the Company presented a third reportable segment, the “Other” segment, which consisted of vacant and non-core properties, together with other properties in the same cross-collateralized loan pools. On December 31, 2024, the Company sold the final property in its Other segment, and as a result, the Other segment was eliminated. The Company presented the results of the Other segment through the year ended December 31, 2024.
The following table presents a reconciliation of segment NOI and net income for the years ended December 31, 2025, 2024, and 2023 as follows:
| Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
Industrial | ||||||||||||||||||||
| Total Industrial revenues | $ | 100,204 | $ | 64,750 | $ | 57,304 | ||||||||||||||
Less: | ||||||||||||||||||||
Industrial property operating expense (1) | 5,793 | 3,916 | 3,424 | |||||||||||||||||
Industrial property tax expense (1) | 8,193 | 5,156 | 4,231 | |||||||||||||||||
Industrial NOI | 86,218 | 55,678 | 49,649 | |||||||||||||||||
Office | ||||||||||||||||||||
| Total Office revenues | 5,777 | 20,825 | 32,288 | |||||||||||||||||
| Less: | ||||||||||||||||||||
Office property operating expense (1) | 213 | 1,909 | 2,804 | |||||||||||||||||
Office property tax expense (1) | 96 | 654 | 1,815 | |||||||||||||||||
Office NOI | 5,468 | 18,262 | 27,669 | |||||||||||||||||
Other | ||||||||||||||||||||
| Total Other revenues | — | 30,782 | 54,246 | |||||||||||||||||
| Less: | ||||||||||||||||||||
Other property operating expense (1) | — | 7,839 | 13,085 | |||||||||||||||||
Other property tax expense (1) | — | 4,108 | 7,391 | |||||||||||||||||
Other NOI | — | 18,835 | 33,770 | |||||||||||||||||
Total NOI | $ | 91,686 | $ | 92,775 | $ | 111,088 | ||||||||||||||
| Unallocated amounts: | ||||||||||||||||||||
Depreciation and amortization (2) | (52,182) | (47,503) | (61,169) | |||||||||||||||||
Real estate impairment provision (2) | (18,195) | (53,313) | (283,804) | |||||||||||||||||
General and administrative expenses (3) | (34,918) | (36,973) | (42,843) | |||||||||||||||||
| Income before other income (expenses) | 196,981 | 230,564 | 498,904 | |||||||||||||||||
| Less: | ||||||||||||||||||||
| Other income (expenses): | ||||||||||||||||||||
| Interest expense | (56,565) | (55,978) | (59,371) | |||||||||||||||||
| Other income, net | 7,351 | 14,479 | 13,107 | |||||||||||||||||
| Net loss from investment in unconsolidated entity | — | — | (176,767) | |||||||||||||||||
| Gain from disposition of assets | 6,407 | 38,368 | 29,164 | |||||||||||||||||
(Loss) gain on extinguishment of debt | (2,482) | 10,466 | — | |||||||||||||||||
| Goodwill impairment provision | — | (10,274) | (16,031) | |||||||||||||||||
| Corporate operating expenses to related parties | (570) | (617) | (1,154) | |||||||||||||||||
| Transaction expenses | (555) | (821) | (24,961) | |||||||||||||||||
| (Loss) income from discontinued operations | (272,610) | 38,028 | (92,361) | |||||||||||||||||
| Net loss | $ | (332,633) | $ | (11,363) | $ | (605,102) | ||||||||||||||
(1)The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
(2)Asset value information by segment are not reported because the CODM does not use these measures to assess performance or make decisions to allocate resources; therefore, depreciation and amortization expense and asset impairment are not allocated among segments. Refer to Segment Reporting sections below, for allocation of real estate assets and goodwill presented for each segment.
(3)General and administrative expenses are not reported by segment because the CODM evaluates these expenses at the corporate level and does not use this measure on a segment-by-segment basis for performance assessment or resource allocation decisions; therefore, general and administrative expenses are not allocated among segments.
A reconciliation of net loss to total NOI for the years ended December 31, 2025, 2024, and 2023 is as follows:
| Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Reconciliation of Net Loss to Total NOI | ||||||||||||||||||||
| Net loss | $ | (332,633) | $ | (11,363) | $ | (605,102) | ||||||||||||||
| General and administrative expenses | 34,918 | 36,973 | 42,843 | |||||||||||||||||
| Corporate operating expenses to related parties | 570 | 617 | 1,154 | |||||||||||||||||
| Real estate impairment provision | 18,195 | 53,313 | 283,804 | |||||||||||||||||
| Depreciation and amortization | 52,182 | 47,503 | 61,169 | |||||||||||||||||
| Interest expense | 56,565 | 55,978 | 59,371 | |||||||||||||||||
| Other income, net | (7,351) | (14,479) | (13,107) | |||||||||||||||||
| Net loss from investment in unconsolidated entity | — | — | 176,767 | |||||||||||||||||
Loss (gain) on extinguishment of debt | 2,482 | (10,466) | — | |||||||||||||||||
| Gain from disposition of assets | (6,407) | (38,368) | (29,164) | |||||||||||||||||
| Goodwill impairment provision | — | 10,274 | 16,031 | |||||||||||||||||
| Transaction expenses | 555 | 821 | 24,961 | |||||||||||||||||
| Net loss (income) from discontinued operations | 272,610 | (38,028) | 92,361 | |||||||||||||||||
| Total NOI | $ | 91,686 | $ | 92,775 | $ | 111,088 | ||||||||||||||
The following table presents the Company’s goodwill for each of the segments as of December 31, 2025 and 2024:
| Year Ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Goodwill | |||||||||||
| Industrial | $ | 68,373 | $ | 68,373 | |||||||
| Total Goodwill | $ | 68,373 | $ | 68,373 | |||||||
The following table presents the Company’s total real estate assets, net, for each segment as of December 31, 2025 and 2024:
| Year Ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Industrial Real Estate, net | |||||||||||
| Total real estate | $ | 1,306,021 | $ | 1,281,815 | |||||||
| Accumulated depreciation and amortization | (211,099) | (180,879) | |||||||||
| Industrial real estate, net | 1,094,922 | 1,100,936 | |||||||||
| Office Real Estate, net | |||||||||||
| Total real estate | — | 211,328 | |||||||||
| Accumulated depreciation and amortization | — | (43,368) | |||||||||
| Office real estate, net | — | 167,960 | |||||||||
| Total Real Estate, net | $ | 1,094,922 | $ | 1,268,896 | |||||||
| Year Ended December 31, | |||||||||||
Discontinued Operations | 2025 | 2024 | |||||||||
| Total Real Estate related to Discontinued Operations, net | |||||||||||
| Total real estate | $ | — | $ | 1,291,432 | |||||||
| Accumulated depreciation and amortization | — | (296,280) | |||||||||
| Real estate related to Discontinued Operations, net | $ | — | $ | 995,152 | |||||||
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.