UBS has adjusted its view of Peakstone Realty Trust (NYSE: PKST), moving the stock from a Buy to a Neutral rating after the company reached an agreement to be acquired by a Brookfield Asset Management private real estate fund for $21.00 per share in cash. At the same time, UBS raised its price target to $21.00 from $17.00.
The transaction places Peakstone’s enterprise value at roughly $1.2 billion, while the company’s market capitalization stood at $574.67 million prior to the deal announcement. Peakstone shares were trading at $20.79, marginally below the offer price, after jumping nearly 39% over the prior week, according to InvestingPro data.
UBS’s analysis indicates that, once remaining office assets are sold, the implied capitalization rate for the transaction is about 6.2%. The bank further breaks down comparable cap-rate levels within Peakstone’s portfolio - with Industrial Outdoor Storage assets trading near 6.5% cap rates and broader industrial holdings at approximately 6.0% cap rates. InvestingPro data cited in UBS’s assessment shows Peakstone trading at an EV/EBITDA multiple of 10.7, a level UBS describes as relatively low for the sector.
The acquisition agreement includes a 30-day go-shop period, during which Peakstone may seek superior offers. The deal carries a $16 million termination fee should the company accept a competing bid. UBS characterized Brookfield’s proposal as "relatively full," and noted that any rival offer would most likely originate from an investor seeking an Industrial Outdoor Storage platform.
According to the timetable disclosed, the transaction is expected to close by the end of the second quarter of 2026.
Earnings and portfolio moves
Peakstone reported results for the third quarter of fiscal 2025 that reflect its ongoing repositioning toward industrial assets. The REIT posted net income of $3.5 million, or $0.09 per share, on total revenue of $25.8 million for Q3 2025. Management has emphasized a strategic shift toward industrial real estate in recent communications.
As part of that repositioning, Peakstone completed the sale of a two-property office and R&D campus in Burlington, Massachusetts, for $84.5 million. UBS factored this disposition into its view of the implied cap rates for the overall transaction.
Separately, Truist Securities reiterated its Buy rating on Peakstone Realty Trust and maintained a $19.00 price target, citing the recent office sales as evidence of upside potential as the company remakes its portfolio.
What UBS’s move means
By upgrading its target to match the cash offer but lowering its recommendation to Neutral, UBS appears to be signaling that the Brookfield bid reduces the upside available to public shareholders while aligning the target with the takeover price. UBS’s cap-rate and multiple analysis suggests the deal is priced at levels the bank considers largely compensatory for Peakstone’s remaining portfolio risk.
The presence of a go-shop window and a termination fee leaves open the possibility of a competing bid, but UBS cautioned that potential suitors would likely be those focused on industrial outdoor storage, reinforcing the view that substantive alternative offers may be limited.
Bottom line
The Brookfield offer values Peakstone at a notable premium to its recent trading levels and prompts differing analyst judgments: UBS moved to Neutral while increasing the target to the offer price, and Truist maintained its Buy rating with a $19.00 target. The deal’s completion, expected by the end of Q2 2026, remains contingent on the go-shop period and any competing proposals that may emerge.