[Part I: Financial Information](index=6&type=section&id=PART%20I%20Financial%20Information) [Item 1. Consolidated Financial Statements](index=6&type=section&id=Item%201.%20Consolidated%20Financial%20Statements.) Piedmont's unaudited consolidated financial statements for Q1 2021 and 2020 are presented, including key financial statements and notes [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) Total assets slightly decreased to **$3.738 billion** as of March 31, 2021, with liabilities increasing and equity decreasing Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Total Assets** | **$3,737,874** | **$3,739,810** | | Total real estate assets | $3,061,259 | $3,056,034 | | Cash and cash equivalents | $10,689 | $7,331 | | **Total Liabilities** | **$1,850,529** | **$1,841,849** | | Unsecured debt, net | $1,633,819 | $1,594,068 | | **Total Stockholders' Equity** | **$1,887,345** | **$1,897,961** | [Consolidated Statements of Income](index=8&type=section&id=Consolidated%20Statements%20of%20Income) Net income increased to **$9.3 million** in Q1 2021, or **$0.08 per diluted share**, primarily due to lower interest expense Consolidated Income Statement Highlights (in thousands) | Account | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | Total Revenues | $129,257 | $137,171 | | Total Expenses | $109,690 | $113,348 | | Interest Expense | $(12,580) | $(15,264) | | **Net Income Applicable to Piedmont** | **$9,344** | **$8,709** | | **Net Income per Share - diluted** | **$0.08** | **$0.07** | [Consolidated Statements of Comprehensive Income/(Loss)](index=9&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%2F%28Loss%29) Comprehensive income reached **$11.6 million** in Q1 2021, a turnaround from a **$13.2 million** loss in Q1 2020, driven by derivative instruments Comprehensive Income/(Loss) (in thousands) | Item | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | Net income applicable to Piedmont | $9,344 | $8,709 | | Other comprehensive income/(loss) | $2,287 | $(21,943) | | **Comprehensive income/(loss) applicable to Piedmont** | **$11,631** | **$(13,234)** | [Consolidated Statements of Stockholders' Equity](index=10&type=section&id=Consolidated%20Statements%20of%20Stockholders%27%20Equity) Total stockholders' equity decreased to **$1.887 billion** due to **$26.1 million** in dividends, partially offset by net income and other comprehensive income - Key changes in stockholders' equity for Q1 2021 included **$26.0 million** in dividends paid to common stockholders, **$9.3 million** in net income, and **$2.3 million** in other comprehensive income[29](index=29&type=chunk) [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations remained stable at **$46.8 million** in Q1 2021, with investing and financing activities using **$27.8 million** and **$15.8 million** respectively Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $46,820 | $46,797 | | Net cash used in investing activities | $(27,813) | $(448,807) | | Net cash (used in)/provided by financing activities | $(15,791) | $396,302 | | **Net increase/(decrease) in cash** | **$3,216** | **$(5,708)** | [Condensed Notes to Consolidated Financial Statements](index=12&type=section&id=Condensed%20Notes%20to%20Consolidated%20Financial%20Statements) The notes detail Piedmont's organization, accounting policies, debt, derivatives, and commitments, with the company owning **54** properties totaling **16.4 million** square feet - As of March 31, 2021, Piedmont owned **54** in-service office properties and one redevelopment asset, comprising approximately **16.4 million** square feet, which were **86.0%** leased[34](index=34&type=chunk) - Total outstanding debt as of March 31, 2021 was approximately **$1.66 billion**, with a weighted average interest rate of **2.97%**[41](index=41&type=chunk) - The company has a significant unrecorded tenant allowance commitment of approximately **$37.2 million** for a 20-year, 520,000 square foot renewal and expansion for the State of New York at 60 Broad Street[53](index=53&type=chunk) - On April 28, 2021, the Board declared a Q2 2021 dividend of **$0.21** per common share[69](index=69&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management discusses financial condition, liquidity, capital resources, and operations, noting limited COVID-19 impact, increased net income, and non-GAAP measures [Liquidity and Capital Resources](index=24&type=section&id=Liquidity%20and%20Capital%20Resources) Piedmont's liquidity relies on cash, operating cash flow, and a **$500 million** credit line, with capital primarily used for property expenditures and stock repurchases - Primary sources of liquidity include cash from operations and a **$500 million** line of credit, which had **$460 million** of capacity available as of the filing date[74](index=74&type=chunk) Capital Expenditures (in thousands) | Category | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | Capital expenditures for redevelopment/renovations | $11,235 | $8,539 | | Other capital expenditures | $14,524 | $23,779 | | **Total capital expenditures** | **$25,759** | **$32,318** | - As of March 31, 2021, the company had approximately **$169.3 million** of board-authorized capacity remaining for future stock repurchases[80](index=80&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Net income increased to **$9.3 million** in Q1 2021, driven by lower interest expense and higher other income, despite decreased rental and property income - Rental and tenant reimbursement revenue decreased by **$6.3 million** in Q1 2021 compared to Q1 2020, primarily due to capital transaction activity and decreased portfolio occupancy[85](index=85&type=chunk) - Interest expense decreased by **$2.7 million** year-over-year due to debt repayment and lower interest rates[92](index=92&type=chunk) - Other income increased by **$2.2 million** year-over-year, attributable to interest income from notes receivable related to the October 2020 sale of the New Jersey Portfolio[93](index=93&type=chunk) [Net Operating Income by Geographic Segment](index=30&type=section&id=Net%20Operating%20Income%20by%20Geographic%20Segment) Total NOI decreased to **$77.7 million** in Q1 2021, with Dallas increasing due to acquisitions, offset by decreases in New York, Corporate, and Washington D.C NOI by Geographic Segment (in thousands) | Segment | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | Dallas | $16,877 | $12,490 | | Atlanta | $14,996 | $14,912 | | Washington, D.C. | $8,573 | $10,129 | | Minneapolis | $8,155 | $8,699 | | Boston | $10,824 | $10,697 | | Orlando | $10,350 | $8,976 | | New York | $7,296 | $11,114 | | Corporate and other | $587 | $6,785 | | **Total NOI** | **$77,658** | **$83,802** | [Non-GAAP Financial Measures (FFO, AFFO, NOI)](index=31&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and reconciles non-GAAP measures, with NAREIT FFO at **$60.1 million** and Same Store NOI increasing **3.9%** on a cash basis FFO Reconciliation (in thousands, except per share) | Metric | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | GAAP net income | $9,344 | $8,709 | | Depreciation of real estate assets | $27,812 | $27,551 | | Amortization of lease-related costs | $22,900 | $23,618 | | **NAREIT FFO** | **$60,056** | **$59,875** | | **FFO per diluted share** | **$0.48** | **$0.47** | - Same Store NOI for Q1 2021 increased by **3.9%** on a cash basis and decreased by **1.2%** on an accrual basis compared to Q1 2020[117](index=117&type=chunk)[124](index=124&type=chunk) [Portfolio and Leasing Activity](index=34&type=section&id=Portfolio%20and%20Leasing%20Activity) Portfolio leased percentage was **86.0%** as of March 31, 2021, with Q1 2021 leases showing a **7.0%** accrual rent roll-up and **2.8%** cash rent roll-down - The portfolio was **86.0%** leased as of March 31, 2021, compared to **86.8%** at December 31, 2020[120](index=120&type=chunk) - In Q1 2021, new and renewal leases for space vacant one year or less experienced a **7.0%** roll-up in accrual rents and a **2.8%** roll-down in cash rents[123](index=123&type=chunk) - As of March 31, 2021, the company had almost **1 million** square feet of executed leases for vacant space that had yet to commence or were under rental abatement[121](index=121&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) The primary market risk is interest rate risk from variable-rate debt, managed through fixed-rate debt and swaps, with **$1.2 billion** effectively fixed - The company's primary market risk is interest rate risk from its variable-rate debt facilities[131](index=131&type=chunk) - The company is monitoring the phase-out of USD LIBOR after June 2023; its credit agreements contain 'fallback' language to establish an alternate interest rate[131](index=131&type=chunk) - As of March 31, 2021, a **1.0%** increase in variable interest rates would increase annual interest expense by approximately **$4.9 million**[135](index=135&type=chunk) [Item 4. Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management concluded that disclosure controls and procedures were effective as of March 31, 2021, with no material changes in internal control - The Principal Executive Officer and Principal Financial Officer concluded that disclosure controls and procedures were effective as of the end of the quarter[136](index=136&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[137](index=137&type=chunk) [Part II: Other Information](index=38&type=section&id=PART%20II.%20Other%20Information) [Item 1. Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings.) The company is not subject to any material pending legal proceedings, with routine litigation expected to be covered by insurance - Piedmont is not subject to any material pending legal proceedings[139](index=139&type=chunk) [Item 1A. Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors.) No material changes to risk factors were reported from the company's 2020 Annual Report on Form 10-K - No material changes to risk factors were reported from the 2020 Form 10-K[140](index=140&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) No unregistered equity sales or common stock repurchases occurred in Q1 2021, with **$169.3 million** remaining for future repurchases - No common stock repurchases were made in Q1 2021. Approximately **$169.3 million** remains available under the stock repurchase program[145](index=145&type=chunk) [Item 6. Exhibits](index=39&type=section&id=Item%206.%20Exhibits.) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents and required certifications - Lists all exhibits filed with the report, including corporate governance documents, compensation agreements, and required certifications[146](index=146&type=chunk)

FEBRUARY INVESTOR UPDATE February 2021 INTRODUCTION 1 Piedmont Office Realty Trust, Inc. (also referred to herein as "Piedmont" or the "Company") (NYSE: PDM) is an owner, manager, developer, redeveloper and operator of high-quality, Class A office properties in select sub-markets located primarily within seven major eastern U.S. office markets, with over half of its revenue generated from the Sunbelt. The Company's geographically-diversified portfolio is comprised of approximately $5 billion in gross assets ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________________________________ _________________________________________________________ FORM 10-K (Mark One) ☒ Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2020 ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to to Commission file number 001-34626 ___________ ...

Financial Data and Key Metrics Changes - For Q4 2020, the company reported core FFO of $0.46 per diluted share, consistent with Q4 2019, while annual core FFO for 2020 was $1.89, up from $1.79 in 2019, reflecting a $0.10 increase [31] - AFFO for Q4 was approximately $36 million, exceeding the current quarterly dividend level [31] - Same-store net operating income (NOI) was slightly down on a cash basis and relatively flat on an accrual basis, with cash-based same-store NOI impacted by rental payment deferrals [32][33] Business Line Data and Key Metrics Changes - The company executed over 1.1 million square feet of leasing in 2020, primarily renewals, with a cash roll-up of 3.5% on second-generation leases [11] - Approximately 190,000 square feet of leasing occurred in Q4, with notable activity in Atlanta, Washington, D.C., Minneapolis, and Dallas [12] - The weighted average lease term for the entire portfolio is now over six years [11] Market Data and Key Metrics Changes - Utilization of the portfolio remains at approximately 25% to 40% on average, varying by city and tenant profile [8] - Smaller tenants (less than 10,000 square feet) are making leasing decisions, while larger tenants (over 50,000 square feet) are also executing leases to take advantage of favorable rates [13] - The company is witnessing increased leasing activity in Sunbelt markets and Boston, driven by corporate relocations and expanding technology companies [15][17] Company Strategy and Development Direction - The company aims to focus on lower-cost, higher-quality life markets, emphasizing amenity-rich workplaces and robust tenant engagement [17] - Plans include recycling capital from non-core markets into healthier markets, with an expected recycling of $200 million to $400 million in 2021 [43] - The company is also focused on redevelopment projects, including the Galleria in Atlanta and the 200 South Orange Avenue campus in Orlando [45] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the vaccine rollout and its impact on business operations, expecting a gradual return to normalcy in 2021 [7][16] - The company anticipates core FFO for 2021 to be in the range of $1.86 to $1.96 per diluted share, with same-store NOI growth expected between 3% and 5% [35][37] - Management noted that the current portfolio's overall occupancy is expected to improve by 1% to 2% by year-end [38] Other Important Information - The company collected 99% of its billed receivables during Q4 2020, indicating strong credit quality among tenants [20] - Approximately 70 tenant workout agreements were entered into, deferring about $7 million in rent, which is less than 1% of total annual revenues [21] - The company repurchased approximately 2.2 million shares of common stock at an average price of $14 per share, totaling about $30.6 million [29] Q&A Session Summary Question: Can you provide additional color on the mix between renewals and new leasing for the 500,000 square feet of leasing? - Management indicated that the split between new and renewal leases is consistent with prior quarters, with activity spread across various markets including Boston, Dallas, and Atlanta [40] Question: What industries or tenant sizes are returning to the office more than others? - Smaller tenants have returned more forcefully, while larger national corporates are more hesitant [41] Question: What are the plans for monetizing assets in stronger markets? - The company plans to continue monetizing mature assets, with potential recycling of $200 million to $400 million in 2021, focusing on Sunbelt and Boston markets [43][44] Question: How does the 500,000 square feet of leasing affect the expiration schedule? - Very little of the leasing activity reduces the 2021 expirations, which remain at about 5.8% [48] Question: What are the net effective rents compared to pre-COVID levels? - Net effective rents have declined by 5% to 10% due to increased concessions, while rates have held steady [50][51] Question: Is the $2.6 million termination fee from WeWork included in the guidance? - Yes, it is included in the guidance and is expected to be recognized primarily in the first quarter [53] Question: What is the G&A guidance for 2021? - The total G&A is estimated to be around $28 million for the year [56]

Financial Data and Key Metrics Changes - For Q3 2020, the company reported core FFO of $0.48 per diluted share, a 6% increase compared to Q3 2019, driven by rental rate roll-ups and capital recycling activities [19][20] - The company experienced a decline in top-line revenue growth due to reduced transient parking and retail revenues, with a total impact of approximately $6 million to $8 million for the year attributed to COVID-19 [20][24] - AFFO for Q3 was approximately $38 million, exceeding the third quarter dividend [22] Business Line Data and Key Metrics Changes - The company completed 229,000 square feet of leasing in Q3, with over one-third related to new tenants, despite the pandemic's impact on leasing demand [9][11] - Cash rent rolls increased approximately 5% year-to-date, while accrual-based rents rose over 11% [11] - The lease occupancy percentage has declined due to the pandemic, with same-store cash NOI comparison being flat year-to-date, impacted by tenant lease modification agreements [13] Market Data and Key Metrics Changes - Strongest leasing activity is observed in the Washington, D.C. area, Boston, and Sunbelt markets, with varying occupancy levels across different regions [11][21] - Daily occupancy at buildings is slowly recovering, with some tenants associated with government services near-normal occupancy, while others remain at 10% to 20% [21] Company Strategy and Development Direction - The company aims to transition its portfolio into high-growth amenity-rich office nodes and improve property quality while maintaining tenant satisfaction [32][33] - The company has exited the New Jersey market and completed a strategic acquisition in Orlando, indicating a focus on refining its portfolio [33] Management's Comments on Operating Environment and Future Outlook - Management acknowledges uncertainties regarding the long-term economic impact of the pandemic on occupancy trends and tenant usage [29] - The leasing pipeline is showing signs of improvement, with expectations for continued momentum into the next year, provided there are no significant COVID-19 waves [39] Other Important Information - The company issued its first green bond of $300 million to fund the acquisition of LEED-certified properties, reflecting its commitment to environmental sustainability [17][18] - The company has a strong liquidity position with approximately $24 million in cash and no debt maturities until late 2021 [23] Q&A Session Summary Question: Can you talk about the utilization of the portfolio by asset type or metropolitan market? - Management noted that occupancy levels vary, with northern markets at 10% to 20% of pre-COVID levels and southern markets at 15% to 40%, while mission-critical facilities are at 80% to 100% [37] Question: Can you discuss the asset sales in New Jersey and the pricing? - The company aimed to clean up its Mid-Atlantic/Northeast portfolio, achieving a reasonable pricing level for the New Jersey assets, generating cash with a cap rate in the high 7s to 8% [41][43] Question: What is the risk of the city of New York moving elsewhere? - Management believes the risk is low due to the unique building fitting the city's needs, with expectations for a shorter-term renewal by year-end [47][48]

Financial Data and Key Metrics Changes - For Q2 2020, the company reported $0.49 per diluted share of core FFO, a 14% increase compared to Q2 2019, reflecting rental rate growth and capital recycling activities [36] - AFFO was approximately $45 million for the second quarter, exceeding the second quarter dividend [36] - Same-store NOI increased approximately 2% on a cash basis and over 5% on an accrual basis before deducting a general reserve of approximately $5 million [37] - General and administrative expenses decreased by $6.5 million compared to the same period in 2019 due to lower stock-based compensation accruals [38] - The average net debt to core EBITDA ratio was 6.2 times, expected to normalize to around 5.6 times in Q3 2020 [39] Business Line Data and Key Metrics Changes - The company collected approximately 99% of cash rents due for Q2 2020, net of $3.6 million in deferred rents [12] - Lease modification agreements were entered into with about 50 tenants, primarily retail, representing approximately 1% of annual revenues [13] - The sale of 1901 Market Street resulted in a gross sales price of approximately $360 million, impacting reported occupancy by lowering the overall lease percentage by 1% to approximately 89% [18][20] Market Data and Key Metrics Changes - The company’s portfolio consists of 57 Class A office properties, totaling 17.2 million square feet, primarily in urban infill and suburban mixed-use environments [22] - Approximately 96% of annualized lease revenue is now generated from properties in seven core operating markets [20] - The pandemic has accelerated trends such as population migration to suburbs and corporations relocating to lower-cost cities [21][25] Company Strategy and Development Direction - The company is focused on a strategic asset recycling program and has successfully exited the Philadelphia market [19] - The pandemic has led to a reevaluation of business strategy, emphasizing the importance of suburban locations and amenities to attract tenants [21][25] - The company aims to leverage its market positions in areas like Dallas, Atlanta, and Washington D.C. to meet the demand for flexible office space [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company’s ability to withstand the economic slowdown due to COVID-19, citing a strong tenant base and financial position [32] - The company is not providing guidance for 2020 due to uncertainties surrounding the pandemic but anticipates modest impacts on lease percentages and financial performance [41][42] - Management noted that new tenant leasing activity has slowed but is beginning to re-emerge, particularly in Sunbelt markets [30][44] Other Important Information - The company has approximately $30 million in cash and full availability of a $500 million line of credit, with no debt maturities until late 2021 [42] - A general reserve of approximately $5 million was established for potential future losses due to the pandemic [47] - The company is committed to supporting efforts to eliminate prejudice and discrimination in its communities [33][34] Q&A Session Summary Question: Clarification on NOI write-offs and reserves - Management explained that the $1.8 million reserve was specific to individual tenant accounts and included write-offs of straight-line rent receivables [54][58] - The $5 million general reserve was established as a precautionary measure for potential unidentified losses [58] Question: Impact of WeWork's construction delays - Management confirmed that WeWork is current on rental obligations and expects construction to commence in 2021, with rent payments starting as per lease terms [61][62] Question: Vacancy in D.C. market - Management noted that D.C. had a strong leasing pipeline pre-pandemic and is seeing a pickup in activity, particularly in technology and defense sectors [64][66] Question: Demand for walkable amenities - Management indicated that there is a growing demand for walkable, non-public transit-oriented locations, driven by millennial preferences for suburban living [70][75] Question: Long-term trends versus COVID impacts - Management believes the trends towards suburban living and hub-and-spoke models are long-term shifts accelerated by COVID-19 [82][84] Question: New York City lease negotiations - Management stated that negotiations are ongoing, with expectations for a shorter-term renewal while longer-term leases are delayed [85][87] Question: Overall impact of COVID-19 on financial performance - Management highlighted that the anticipated $10 million to $12 million impact on NOI is primarily due to delayed leasing and reserves established for potential losses [90][91]

Piedmont Office Realty Trust, Inc. (NYSE:PDM) Q1 2020 Earnings Conference Call April 30, 2020 11:00 AM ET Company Participants Brent Smith - President & CEO Robert Bowers - CFO Conference Call Participants Michael Lewis - SunTrust Anthony Paolone - JPMorgan Chase Dave Rodgers - Robert W. Baird Aaron Wolf - Stifel Operator Good day, ladies and gentlemen, and welcome to the Piedmont Office Realty Trust, Inc., First Quarter 2020 Earnings Call. All lines have been placed on a listen-only mode and the floor will ...

Quarterly Supplemental Information March 31, 2020 Corporate Headquarters Institutional Analyst Contact Investor Relations 5565 Glenridge Connector, Suite 450 Telephone: 770.418.8592 Telephone: 866.354.3485 Atlanta, GA 30342 research.analysts@piedmontreit.com investor.services@piedmontreit.com Telephone: 770.418.8800 www.piedmontreit.com Piedmont Office Realty Trust, Inc. Quarterly Supplemental Information Index Page Page Introduction Other Investments Corporate Data 3 Other Investments Detail 39 COVID-19 Up ...

Piedmont Office Realty Trust, Inc. (NYSE:PDM) Q4 2019 Results Earnings Conference Call February 5, 2020 10:00 AM ET Company Participants Brent Smith - President, CEO Edward Guilbert - Executive VP of Finance & Treasurer Robert Bowers - CFO, Executive VP & Chief Administrative Officer Conference Call Participants Nick Thillman - Baird Daniel Ismail - Green Street Advisers John Guinee - Stifel Tony Paolone - JPMorgan Operator Ladies and gentlemen, hello and thank you for joining today's Piedmont Office Realty ...

Financial Data and Key Metrics Changes - For Q3 2019, the company reported core FFO of $0.45 per diluted share, consistent with the same period a year ago [36] - AFFO was approximately $36.7 million for the third quarter, well above the current $26 million quarterly dividend level [37] - Same-store NOI increased approximately 5% on a cash basis and 0.5% on an accrual basis for the third quarter [39] Business Line Data and Key Metrics Changes - The company completed approximately 564,000 square feet of leasing during the quarter, with a nearly 10% increase in beginning cash rents and a 23.5% increase in GAAP rents [29] - Significant leases included a renewal by Commercial Metals Company for approximately 106,000 square feet in Dallas and a new lease with WeWork for approximately 72,000 square feet in Atlanta [30][31] Market Data and Key Metrics Changes - The company has concentrated its portfolio in submarkets with greater than 20% Class A market share, achieving operational success in areas like Downtown Orlando and the Galleria office complex in Atlanta [8][9] - The Galleria Atlanta project has seen annualized leased revenue increase by almost 20% since the initial acquisitions [15] Company Strategy and Development Direction - The company is focused on recycling out of fully valued mature assets and redeploying proceeds into accretive acquisitions [7] - The strategy includes the disposition of non-core assets, with $1.9 billion sold over the past four years, and reinvestment into markets with favorable risk-adjusted returns [21][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the leasing momentum and operational success, anticipating meaningful earnings growth in 2020 [5][6] - The company is not prepared to issue formal guidance for 2020 but believes current consensus estimates are below their preliminary expectations [44] Other Important Information - The company completed the acquisition of Galleria 400 and 600 for $212.4 million, with plans for redevelopment to enhance value [16][18] - A sustainability report was released, outlining goals to reduce energy and water consumption by 20% over the next eight years [35] Q&A Session Summary Question: What was the GAAP spread on the New York state lease? - The GAAP spread from the prior lease to the new lease was approximately 40% [47] Question: How does the New York state lease impact 2020 earnings? - Part of the anticipated shortfall in 2020 consensus is related to the New York state lease, along with other leases that have not yet commenced [48][49] Question: What is the expectation for lease-up at Galleria? - The company expects good activity across the project, with a 10% vacancy and potential for rental rates to increase from the low 30s to mid-30s [52][54] Question: What does the acquisition pipeline look like? - The pipeline remains robust in markets like Boston, Dallas, and Atlanta, although there is a slight reduction in overall opportunities [56] Question: How does the company view the dividend going forward? - The company is encouraged by cash flow growth but is cautious about increasing dividends until after addressing current lease negotiations [67] Question: What is the company's stance on co-working tenants like WeWork? - The company recognizes the demand for flexible space and has spread exposure to various co-working operators, with WeWork representing less than 1% of overall annualized lease revenue [75]