Peakstone Realty Trust

Good day, and welcome to Peakstone Realty Trust's third quarter of 2025 earnings call and webcast. All participants will be in a listen-only mode, and should you need any assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. If you withdraw a question, please press star, then two. Also, please be aware that today's call is being recorded. I would now like to turn the call over to Steve Sweat, Investor Relations.

Please go ahead. Good afternoon, and thank you for joining us for Peakstone Realty Trust's third quarter 2025 earnings call and webcast. Earlier today, we posted an earnings release, supplemental, and updated investor presentation to the investors page on our website at www.pkst.com. please reach out to our investor relations team at ir.pkst.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. Additionally, on this call, the company may refer to certain non-GAAP financial measures, such as funds from operations or funds from operations, adjusted funds from operations, EBITDA RE, adjusted EBITDA RE, and same-store cash net operating income. 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 and President, and Javier Vitar, CFO. With that, I'll hand the call over to Mike.

Good afternoon, and thank you for joining our call today. Our strategic transformation into an industrial-only REIT focused on growth in the industrial outdoor storage sector, continues to advance. As of October 31st, our industrial portfolio generates more than 60% of our ABR. Through disciplined office sales, strong iOS leasing, and targeted iOS acquisitions, we have strengthened our balance sheet, reducing debt by approximately $450 million and improving total leverage to 5.4 times on a pro forma basis. With solid liquidity and a growing iOS investment pipeline, we remain confident in our strategy and our ability to continue creating value for shareholders. During and after the third quarter, we continued making progress on our office dispositions. As of October 31st, we've sold 12 office properties, totaling approximately $363 million, leaving just 12 remaining office properties in our portfolio. Buyer interest, including from existing tenants, has been strong, and we expect to complete the sale of a majority of these properties by the end of this year, with a few transactions potentially closing in the first quarter of 2026. Let me now turn to our iOS portfolio, where market fundamentals remain solid, characterized by strong tenant demand and persistent supply constraints. These dynamics continue to keep vacancies low and support healthy rent growth. Against that backdrop, we continue to deliver strong results across both our iOS operating and redevelopment portfolios. During the quarter, we executed new leases, renewals, and proactive lease modifications across our iOS portfolio, generating more than $1 million of incremental iOS ABR. These transactions brought the iOS operating portfolio to 100% least and overall achieved weighted average releasing spreads of 116% on a cash basis and 120% on a GAAP basis. Let me provide more detail on the transactions that drove these results. In Philadelphia, we signed a new eight-year lease for 1.6 usable acres that is expected to commence in the first quarter of 2026, following the completion of landlord improvements. The lease includes 7.7% average annual rent escalations and filled what has been our only vacancy in the IOS operating portfolio. In Houston, we executed a new 5.1-year full-site lease for 10 usable acres. The prior lease was set to expire in 2028 and included a below-market fixed-rate renewal option. To capture embedded value, we proactively terminated that lease and simultaneously replaced it with a new lease at releasing spreads of 9% on a cash basis and 7% on a gap basis. The new lease includes 3.5% annual rent escalations. And in Norcross, Georgia, we proactively downsized the existing tenant. renewing them for two years, and simultaneously sign a new two-year lease for the remaining acreage, keeping the 8.7 usable acres fully leased. Together, these transactions produce strong releasing spreads of 239% on a cash basis and 251% on a GAAP basis, with weighted average annual escalations of 3.3%. In our iOS redevelopment portfolio, we executed a full site lease at our property in Savannah, Georgia, which commenced in July. The lease, which delivers over $500,000 of incremental ABR with 4% annual rent escalations, was previously disclosed. Overall, this performance highlights our ability to drive internal growth and capture the mark-to-market opportunity within our iOS portfolio. We intend to build on this progress as we advance our strategy. Turning now to acquisitions, let me briefly describe the three IOS properties we acquired this quarter for a total of approximately $58 million. The Atlanta property is a 27 usable acre site acquired for approximately $42 million. At closing, It was 100% leased by two tenants with a five-year vault and 3.8% weighted average annual rent escalations. The Port Charlotte property is a 9.2 usable acre site acquired for approximately $10.4 million. At closing, it was 100% leased by three tenants with a 6.8 year wall and a 3% weighted average annual rent escalations. Both of these latter acquisitions were previously disclosed. Our third acquisition was a 2.5 usable acre site in Fort Pierce along Florida's east coast. We acquired the property for $5.3 million. It includes upgraded yard space and a newly renovated building that supports yard operations. The site is fully leased by a single tenant that utilizes it to store and distribute HVAC and plumbing supplies. The lease has a remaining term of approximately 10 years and includes 2.5% annual rent escalations. Now turning to our traditional industrial portfolio. This quarter, as part of our ongoing portfolio optimization, we sold three properties for approximately $72 million. These assets, two flex properties and one manufacturing facility, are located in Baltimore, Detroit, and Cleveland markets and were sold at a combined cap rate of 6.9%. Each asset was sold to a long-term, net-lease-focused buyer. These transactions reflect our continued effort to enhance the overall quality of our traditional industrial portfolio. We remain disciplined and opportunistic in managing these assets consistent with our approach across all of our real estate. Going forward, we do not anticipate broad sales activity within our traditional industrial portfolio. And with that, I'll turn the call over to Javier to walk through our financial results and capital markets activity. Javier?