Peakstone Realty Trust (PKST) Shifts 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 potential of Peakstone Realty Trust (NYSE:PKST) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term 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.

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