Wednesday, Truist Securities adjusted its price target on shares of Peakstone Realty Trust (NYSE:PKST) to $13.00 from the previous $16.00, while retaining a Hold rating on the stock. This revision follows the company's second-quarter financial results for 2024.
The firm's analyst cited a reduction in the 2024 Company Defined Adjusted Funds From Operations (AFFO) per share to $2.81 from $2.90 and an increase in the 2025 estimate to $2.72 per share from $2.62.
The analyst's projections include a year-over-year decline of 6% in 2024, followed by a 3% decrease in 2025. These estimates are part of the rationale behind the reduction in the price target for Peakstone Realty Trust's shares.
The new price target of $13 is derived from a discounted cash flow estimate of $16.65 with a one-third weighting, a projected 35% discount to the Net Asset Value (NAV) a year from now with another one-third weighting, and a multiple of 5 times the 2024 Funds Available for Distribution (FAD).
Truist Securities expects Peakstone Realty Trust to deploy approximately $300 million towards the acquisition of industrial assets in 2024, which has been factored into their financial modeling and subsequent price target adjustment.
Peakstone Realty Trust has announced the results of its 2024 annual shareholders meeting, where key proposals were approved. The shareholders elected five trustees to the board and ratified Ernst & Young LLP as the company's independent registered public accounting firm for the fiscal year ending December 31, 2024.
Truist Securities has adjusted its price target for Peakstone Realty Trust from $17.00 to $15.00, maintaining a Hold rating. This adjustment follows Peakstone's fourth-quarter results from 2023 and is attributed to increased interest income. Truist Securities projects that Peakstone will invest $300 million in industrial properties in 2024.
Furthermore, Truist Securities has revised its forecast for the Company Defined Adjusted Funds From Operations (AFFO) per share for 2024 to $3.28, up from the previous estimate of $3.07. The projection for 2025 has also been adjusted to $3.18 per share, up from the earlier $2.93.
InvestingPro Insights
As Peakstone Realty Trust (NYSE:PKST) navigates through its financial year, the latest data from InvestingPro provides a deeper insight into the company's performance and market position. The Market Cap of PKST stands at $450.7 million, reflecting the company's size in the industry. Despite a challenging period, PKST is trading at a low Price / Book multiple of 0.41, which could indicate that the stock is undervalued relative to its book value. This aligns with the InvestingPro Tip that PKST is trading at a low Price / Book multiple.
Furthermore, PKST's dividend yield is substantial at 7.26%, a noteworthy consideration for income-focused investors. This is reinforced by the InvestingPro Tip highlighting PKST's significant dividend to shareholders. Additionally, analysts predict the company will be profitable this year, which may signal a turnaround from the negative earnings per share of -$4.04 reported in the last twelve months.
For those considering a deeper dive into Peakstone Realty Trust's potential, InvestingPro offers additional insights and tips. Currently, there are 6 more InvestingPro Tips available for PKST, which can be accessed for further informed investment decisions.
It's important to note that the stock's performance has seen a 5.72% increase in the last week, yet it has experienced declines over longer periods, including a 35.53% drop year-to-date. Investors may want to consider these metrics alongside the company's future profitability and dividend yield when assessing the investment opportunity PKST presents.
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