Peakstone Realty Trust (PKST) Formely Griffin Realty Trust Loss Recovery

What is going on with Peakstone Realty Trust (PKST) Formely Griffin Realty Trust

As a former financial advisor who now works with the law firm Haselkorn & Thibaut,, I have a unique perspective on the challenges investors face in Peakstone Realty Trust, formerly Griffin Realty Trust. As a financial advisor, I witnessed firsthand how the REIT was often misrepresented to clients as a conservative, low-risk investment option with the potential for steady returns and easy liquidity.

Peakstone Realty Trust is an internally managed, publicly registered real estate investment trust (REIT). Its primary focus is owning and operating a portfolio comprised mainly of single-tenant industrial and office properties.

In March 2023, the entity rebranded, shifting its name from Griffin Realty Trust to Peakstone Realty Trust. This change was part of its strategy to prepare for a New York Stock Exchange (NYSE) listing. On April 13, 2023, Peakstone Realty Trust achieved this goal, successfully listing its shares on the NYSE with the ticker symbol “PKST.”

Previously, the company had encountered several challenges as Griffin Realty Trust. Notably, it faced numerous complaints from investors. These investors claimed that their financial advisors and broker-dealers had misrepresented the REIT as a conservative, short-term, and liquid investment option. Unfortunately, this led to significant losses for many investors who had put their money into Griffin Realty.

For those who have incurred investment losses with Peakstone Realty Trust, Haselkorn & Thibaut, offers a helping hand. This law firm is dedicated to defending investors across the United States and boasts a remarkable 98% success rate. With over 50 years of experience and offices in Florida, New York, North Carolina, Arizona, and Texas, the firm has a track record of recovering millions for investors.

They encourage affected investors to contact them for a free consultation at 1-800-856-3352, operating on a “no recovery, no fee” basis.

This article explores the history and challenges faced by Griffin Realty Trust and Peakstone Realty Trust. It also offers insights into the nature of the complaints lodged against them and discusses viable options for investors seeking to recover their losses.

Background on Peakstone Realty Trust (NYSE: PKST), Griffin Realty Trust, Cole Office & Industrial REIT

Peakstone Realty Trust (NYSE: PKST) is an internally managed, industrial, and office real estate investment trust (REIT) that is listed on the New York Stock Exchange. The exchange-listed information can be found in its Quarterly Reports on Form 10-Q filed with the U.S. Securities and Exchange Commission. It was formerly known as Cole Office & Industrial REIT (CCIT II), Inc. Griffin Realty Trust, formerly known as Griffin Capital Essential Asset REIT, is a complex and risky investment product that may not be suitable for inexperienced retail investors. In recent times, Griffin Realty Trust has suspended its share redemption program and its distribution reinvestment plan. These events have led to investor dissatisfaction and a growing number of complaints.

The decline in Net Asset Value

Peakstone Realty Trust Stock Chart NYSE:PKST

In 2022, Griffin Realty Trust Inc reported a decline in its net asset value (NAV) per share from $9.10 to $7.37, an 18% decrease. The company attributed this decline to the decrease in the value of office properties.

Q1 2023 Highlights

  • Revenue stood at approximately $67.0 million.
  • The Company reported a net income of about $9.0 million; the net income attributable to common shareholders was approximately $6.0 million, or $0.17 per share, both basic and diluted.
  • The basic and diluted per share/unit Funds from Operations (“FFO”) 1 stood at $0.37.
  • Adjusted Funds from Operation (“AFFO”)1 were $0.68 per share/unit, both basic and diluted.
  • Same Store Cash Net Operating Income (“Same Store Cash NOI”) reached approximately $48.4 million.
  • The Company sold three properties for a total of $169.6 million.
  • Peakstone amended its existing corporate credit facility (the “Facility”) to add an extra extension option to the revolving credit facility (the “Revolver”) through January 2026.
  • The Company repaid the $400 million 2024 Facility term loan using capacity from the Revolver and cleared a $19.1 million secured loan.
  • The Board of Trustees declared a dividend of $0.075 per common share for March 2023.

Subsequent Events

  • On April 10, 2023, the Company redeemed all preferred shares (comprising 5 million Series A Preferred Shares held by a third-party international investor).
  • On April 13, 2023, Peakstone listed its common shares on the NYSE under the ticker “PKST”.

CEO Michael J. Escalante expressed satisfaction over the successful execution of their business plan, including the amendment of the revolving credit facility, the redemption of preferred shares, and the listing on the NYSE. He reaffirmed their commitment to achieve an investment-grade rating by improving their balance sheet.

Financial Results Summary

  • The Company’s total revenue for Q1 2023 was approximately $67.0 million, a decrease primarily due to the sale of 48 properties in 2022 and three properties in Q1 2023.
  • Net income attributable to common shareholders for Q1 2023 was approximately $6.0 million, primarily due to the net gain of $30.6 million from the sale of three properties in Q1 2023.
  • FFO and AFFO for Q1 2023 were $14.7 million and $26.8 million, respectively, primarily due to the decrease in rental income as a result of property dispositions.
  • Same Store Cash NOI was approximately $48.4 million, a decrease primarily due to a $2.2 million rent concession related to a lease renewal.

Operating Results Summary

  • The Company’s wholly-owned portfolio consisted of 78 properties in 24 states, 95.3% leased, with an average economic occupancy of 94.6%.
  • The Company completed sales of three properties for a total of $169.6 million.
  • The Company had $500.5 million in total liquidity and $1.5 billion in total consolidated debt.

Subsequent to quarter-end, the Company redeemed all preferred shares and completed a one-for-nine reverse share split.

Dividends Summary

  • The Company paid an all-cash distribution for January and February 2023 and declared an all-cash monthly distribution for March.

Board of Directors Refreshment

In March 2023, Peakstone Realty Trust announced significant changes to its board of directors in anticipation of the NYSE listing. Kevin A. Shields, Kathleen S. Briscoe, Ranjit M. Kripalani, James F. Risoleo, and J. Grayson Sanders each communicated their intention to resign.

Financial Advisor Complaints

Despite its inherent risks and complexities, investors have reported that their financial advisors recommended Griffin Realty Trust as a conservative, short-term, and liquid investment. Meaning investors that it would continue to pay income and not lose value. Currently, there is no Griffin Realty Trust redemption. The net asset value is now tied to the stock which is a substantial loss for many investors.

As a result, some investors have experienced significant losses, leading to increasing legal claims against negligent brokers and brokerage firms.

Risks and Problems with Non-traded REITS

Non-traded REITs pose various problems and risks for investors compared to publicly traded REITs. Some of these issues include:

  1. Lack of liquidity: Non-traded REITs are illiquid, meaning that they are not traded on a stock exchange and can be difficult to sell or redeem, which may be problematic for investors needing to access their funds quickly.
  2. Lack of share value transparency: Since non-traded REITs are not publicly traded, there is no market for their shares, making it challenging to determine their true value. Some non-traded REITs will reveal all assets and value after 18 months of their offering, but this may not be comforting for investors who prefer more frequent updates on their investments’ worth [2].
  3. Use of offering proceeds and borrowings to pay distributions: Non-traded REITs may use the money from investors and borrowings to pay distributions, reducing the value of the shares and the cash available for the REIT to purchase real estate assets.
  4. Fees and expenses: All REITs come with fees and expenses, which can impact the overall return on investment. Non-traded REITs may have higher fees than publicly traded ones due to their complex structures and limited marketability.
  5. Market risk: Non-traded REITs, like other investment vehicles, are subject to market risk, which can result from factors such as recessions, interest rate changes, and natural disasters. Market risk can impact the entire financial market and may be difficult to eliminate through diversification.
  6. Regulatory changes: The North American Securities Administrators Association is considering new rules limiting the amount an investor can buy into a non-traded REIT and prohibiting such funds from paying out distributions based on borrowed money or offering proceeds. These potential changes could affect the attractiveness and returns of non-traded REITs for investors.

In conclusion, investors should carefully consider the risks and problems associated with non-traded REITs before investing, including liquidity, transparency, distribution funding practices, fees, market risks, and potential regulatory changes.

Investor Recovery Options

Investors who have suffered losses due to investing in Griffin Realty Trust may be able to recover their losses through legal means. One possible option is to file a Financial Industry Regulatory Authority (FINRA) Dispute Resolution Claim. A FINRA securities arbitration is a way investors can recover financial losses that are typically faster and less costly than traditional lawsuits.

If you’ve experienced investment losses with Peakstone Realty Trust, Haselkorn & Thibaut,, can help. Victims of national securities fraud often think losses are the result of the market.

Our law firm specializes in fighting for investors nationwide and has a 98% success rate. With over 50 years of experience and offices in Florida, New York, North Carolina, Arizona, and Texas, we have recovered millions for investors.

Call us now for a free consultation at 1-800-856-3352 or email us at [email protected]. Remember, no recovery, no fee.

In light of the growing number of complaints, the Griffin Realty Trust board has urged its stockholders to consult with their own financial, tax, and other advisors and/or brokers to consider their individual circumstances and the considerations set forth in the tender offer documentation.


Investors who have suffered losses from investing in Griffin Realty Trust should explore their legal options to recover their losses. Consulting with experienced law firms and filing a FINRA Dispute Resolution Claim may provide investors with a pathway to recovery. It is essential that investors consult with their financial advisors and consider their individual circumstances before making any decisions.

Peakstone Realty Trust FAQs

What does Peakstone Realty Trust do?

Peakstone Realty Trust is a publicly registered, internally managed real estate investment trust (REIT) that is listed on the NYSE under the ticker symbol PKST. The company was formerly known as Griffin Realty Trust.

Peakstone Realty Trust owns and operates a high-quality, newer-vintage portfolio of predominantly single-tenant industrial and office properties.

These properties are mainly net leased to creditworthy and nationally recognized tenants under long-term agreements, often with contractual rent escalations. In their own words, they describe themselves as “America’s Blue-Chip Landlord™️”.

What is the tender offer for Griffin REIT?

There is no longer a tender offer for Griffin REIT. Griffin Realty Trust, now known as Peakstone Realty Trust, has been the target of multiple unsolicited tender offers.

In September 2022, MacKenzie and its affiliates launched a tender offer to purchase up to 1 million shares of Griffin Realty Trust for $4.09 per share in cash. Around the same time, CMG Partners extended an unsolicited tender offer to purchase up to 500,000 Class E shares for $3.76 per share in cash.

How much is Griffin Realty Trust worth?

peakstone realty trust PKST stock chart

The current share price of Peakstone Realty Trust (NYSE: PKST) is $24.78. Prior to the public listing, it was a non-traded REIT.

What is the E symbol for Griffin Realty Trust?

The ticker symbol for Griffin Realty Trust Class E shares is “GCEA”. Please note that Griffin Realty Trust changed its name to Peakstone Realty Trust in March 2023. It’s important to note that the current ticker symbol “PKST” is under the new name, Peakstone Realty Trust.

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