Peakstone Realty Trust (PKST) Shifted Focus to Industrial Outdoor Storage REIT

Alluvial Capital Management, an investment advisory firm, released its second-quarter 2025 investor letter. A copy of the same can be downloaded here. The fund rose 8.5% in the quarter, bringing the year-to-date returns to 15.6%. As of June 30, the comparable US benchmarks continued to be in negative territory for the year. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second-quarter 2025 investor letter, Alluvial Capital Management highlighted stocks such as Peakstone Realty Trust (NYSE:PKST). Peakstone Realty Trust (NYSE:PKST) is a real estate investment trust that focuses on shifting its portfolio composition towards industrial properties. The one-month return of Peakstone Realty Trust (NYSE:PKST) was -12.52%, and its shares gained 2.56% of their value over the last 52 weeks. On August 12, 2025, Peakstone Realty Trust (NYSE:PKST) stock closed at $12.02 per share, with a market capitalization of $442.22 million.

Alluvial Capital Management stated the following regarding Peakstone Realty Trust (NYSE:PKST) in its second quarter 2025 investor letter:

“Peakstone Realty Trust (NYSE:PKST) continues its transition into an industrial outdoor storage-focused REIT. PeakStone Realty has now sold all its non-core properties, and is currently marketing another office building that is expected to bring in $100 million. Once sold, PeakStone will have reached its leverage target and can then focus entirely on growing its industrial outdoor storage platform. Valuing only currently leased industrial properties using a 6% cap rate and valuing the remaining offices using a 9% cap rate yields net asset value of $30 per share. This should be discounted for ongoing corporate costs, but the company’s robust free cash flow yield supports a fair value much higher than current trading around $14.”

A close-up of a large industrial property, highlighting the size and scale of the company’s real estate investments.

Peakstone Realty Trust (NYSE:PKST) is not on our list of 30 Most Popular Stocks Among Hedge Funds. While we acknowledge the risk and potential of Peakstone Realty Trust (NYSE:PKST) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Peakstone Realty Trust (NYSE:PKST) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.