Peakstone Realty Trust

are at pqst.com with any questions. The company will be making forward-looking statements, which include any statements that are not historical facts on today's webcast. Such forward-looking statements are based on expectations that involve risks and uncertainties that could cause actual results to differ materially. For a further discussion of risks related to our business, please see our annual report on Form 10-K and subsequent filings with the SEC. On this call, the company may refer to certain non-GAAP financial measures, such as funds from operations, core funds from operations, adjusted funds from operations, EBITDA RE, and adjusted EBITDA RE. You can find a tabular reconciliation of these non-GAAP financial measures to the most currently comparable GAAP numbers in the company's earnings release and filings with the SEC. On the call today are Mike Escalante, CEO of Presidents, and Javier Bitter, CFO. With that, I'll hand the call over to Mike.

Good afternoon. Thank you for joining our call today. We continue to advance our strategic transformation into an industrial RE. Growth in the industrial outdoor storage, or iOS subsector, remains central to this strategy. Our focus is on scaling our iOS platform through acquisitions and leasing, divesting our remaining office assets, and reducing leverage. During and subsequent to quarter end, we made meaningful progress across each of these focus areas. Let me start with the recent activity across our iOS platform, where we continue to drive both external and internal growth. We expanded our iOS portfolio with two acquisitions, totaling approximately $52 million. First, we acquired a 27 usable acre property in an infill sub-market in Atlanta for approximately $42 million. This site is located along one of Atlanta's most active and established industrial corridors and features upgraded yard space and a combination of renovated and newly constructed buildings to support yard operations. It is fully leased to two tenants, each having long-term contracts in the logistics or municipal services sectors. On a combined basis, the leases have a weighted average term of five years and include .8% average annual rent escalations. Second, we acquired a 9.2 usable acre property in Port Charlotte, Florida for approximately $10.4 million. The property is located within the growth corridor, stretching from Tampa through Fort Myers, an area experiencing strong economic and demographic momentum. It is fully leased to three tenants, including a national equipment rental company as the anchor. On a combined basis, the leases have a weighted average term of 6.8 years and include 3% average annual escalations. In addition to acquisitions, we continue to demonstrate execution across our iOS redevelopment program. Shortly after quarter end, we completed the redevelopment of another iOS property. We executed a full-site -half-year lease at our property in Savannah, which commenced in July. The lease delivers over $0.5 million of incremental ABR with 4% annual rent escalations. It is also notable that this was one of the largest iOS leases in the Savannah market year to date. The transaction reflects our continued ability to execute on redevelopment and drive growth across the iOS platform. As a result of this activity, we have increased our iOS ABR by over 25% since the beginning of the year. Turning to Office, we have taken meaningful steps towards monetizing our Office portfolio, a priority we expect to execute at an even more accelerated pace. Through quarter end, we sold seven Office properties for $158 million. Subsequent to quarter end, we closed on two additional sales located in Platteville, Colorado and Andover, Massachusetts, totaling $24 million, bringing our -to-date Office sales to 11 properties totaling $216 million. We also took steps to further align book values with expected sale outcomes. During the quarter, we recognized a non-cash impairment of approximately $286 million, primarily related to 18 Office properties. These non-cash impairments reflect shortened, anticipated hold periods and updated expectations for sale pricing, consistent with our strategy to sell all of our Office assets in the coming quarters. As a result, the Office segment now represents just 35% of the net book value of our real estate assets or approximately $615 million, while the Industrial segment accounts for approximately 65%, reflecting the ongoing success, transforming our portfolio. With that, I'll turn the call over to Javier to walk you through our financial results and capital markets activity. Javier?

Thanks, Mike. To begin, I'll cover several key financial highlights for the quarter end of June 30 before turning to a few pro forma metrics that reflect activity completed after quarter end. For the quarter end of June 30, total revenue was approximately $54 million, and cash in OI was approximately $43 million. Net loss attributable to common shareholders was approximately $265 million, or $7.22 per share, inclusive of non-cash impairments of approximately $286 million recorded during the quarter. As Mike explained, the vast majority of these non-cash impairments related to 18 Office segment properties. FFO was approximately $23.9 million, or $0.60 per share on a fully diluted basis. Fore FFO was approximately $23.8 million, or $0.60 per share on a fully diluted basis, and AFFO was approximately $24.3 million, or $0.61 per share on a fully diluted basis. Same store cash in OI increased 9.3 percent in our industrial segment and 4.7 percent in our office segment, or an overall increase of 6.3 percent compared to the same quarter last year. Moving on to our balance sheet. At quarter end, total liquidity was approximately $356 million consisting of cash in available revolver capacity. Our cash balance, excluding restricted cash, was approximately $264 million, and available revolver capacity was approximately $92 million. We had approximately $1.26 billion of total debt outstanding, including $900 million of unsecured debt on our credit facility with the remainder and non-report secured mortgage debt. After deducting cash, our net debt was approximately $1 billion. Next, I would like to mention the impact of certain post-quarter activity. As we had previously disclosed, our forward-starting -to-fixed interest rate swaps totaling $550 million took effect on July 1st, converting so far on our credit facility After giving effect to these swaps, our weighted average interest rates on all debt, both secured and unsecured, is approximately 5.47 percent. Also, following the post-quarter leasing, acquisition, and disposition activity that Mike described, our net debt to adjusted EBIT RE increased modestly, from 6.4 times at quarter end to 6.6 times on a pro forma basis, but remains below our first quarter level of seven times. We remain focused on reducing leverage over time and expect to continue making progress as we execute on our plan. In light of the continued execution of our office dispositions and the resulting evolution of our earnings profile, the board has approved a dividend of $0.10 per common share for the third quarter. This dividend is payable on October 17th to holders of record as of September 30th. The updated dividend level reflects the ongoing transition of our portfolio to an exclusively industrial strategy and is designed to align with the cash flow characteristics of that portfolio. It also provides a foundation as we continue to scale the iOS platform. With that, I'll turn the call back over to Mike.