Core Viewpoint - Piedmont Realty Trust reported quarterly funds from operations (FFO) of $0.36 per share, exceeding the Zacks Consensus Estimate of $0.35 per share, but down from $0.37 per share a year ago, indicating a slight decline year-over-year [1][2] Financial Performance - The company achieved revenues of $140.29 million for the quarter ended June 2025, which was 1.09% below the Zacks Consensus Estimate and down from $143.26 million in the same quarter last year [2] - Over the last four quarters, Piedmont Realty Trust has surpassed consensus FFO estimates two times and topped consensus revenue estimates two times [2] Stock Performance - Piedmont Realty Trust shares have decreased by approximately 17.9% since the beginning of the year, contrasting with the S&P 500's gain of 8.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus FFO estimate for the upcoming quarter is $0.35, with projected revenues of $141.82 million, and for the current fiscal year, the estimate is $1.42 on revenues of $568.05 million [7] - The outlook for the industry, particularly the REIT and Equity Trust - Other sector, is currently in the top 38% of Zacks industries, suggesting a favorable environment for performance [8]

[Introduction](index=3&type=section&id=Introduction) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) The company's forward-looking statements are subject to inherent risks and uncertainties, with actual results potentially differing due to various factors - The company's forward-looking statements, including its **2025 guidance**, are subject to significant risks and uncertainties that could cause actual results to differ[8](index=8&type=chunk) - Key risk factors encompass **economic and technological changes** impacting the office sector, **competition**, **tenant financial health**, **rising interest rates**, and **risks in property acquisitions, dispositions, and development delays**[9](index=9&type=chunk)[11](index=11&type=chunk) [Earnings Release](index=5&type=section&id=Earnings%20Release) Piedmont reported a **Q2 2025 net loss of $16.8 million**, widened by debt extinguishment, yet achieved significant leasing success and raised **2025 leasing guidance** - Executed over **700,000 square feet of leasing in Q2 2025**, with new tenant leasing reaching its highest quarterly volume since **2018**[13](index=13&type=chunk) - **Annual leasing guidance for 2025 increased by over 50%** to **2.2 - 2.4 million square feet**[13](index=13&type=chunk) Q2 2025 Financial Highlights (vs. Q2 2024) | Metric | Three Months Ended June 30, 2025 (in millions USD) | Three Months Ended June 30, 2024 (in millions USD) | | :--- | :--- | :--- | | Net Loss | $(16.8) | $(9.8) | | Net Loss per Share | $(0.14) | $(0.08) | | Core FFO per Share | $0.36 | $0.37 | | Same Store NOI (Cash) | (2.0)% | 5.7% | | Same Store NOI (Accrual) | 1.7% | 3.7% | Q2 2025 Leasing & Balance Sheet Highlights | Metric | Q2 2025 | | :--- | :--- | | Total Leasing (sq ft) | 712,000 | | New Tenant Leasing (sq ft) | 468,000 | | Cash Rent Roll Up | 7.3% | | Leased Percentage | 88.7% | | Total Debt (USD) | $2.18 billion | | Avg Net Debt to Core EBITDA | 6.9x | - Sold **80 and 90 Central** for approximately **$29.5 million**, recognizing a **gain of $1.2 million**[18](index=18&type=chunk) - Repurchased approximately **$67.5 million of 9.25% Senior Unsecured Notes due 2028**, incurring a **$7.5 million loss on early extinguishment** but anticipating **$7.5 million in interest savings** over **three years**[20](index=20&type=chunk) Full Year 2025 Guidance | Metric | Low (in millions USD) | High (in millions USD) | | :--- | :--- | :--- | | Net Loss | $(54) | $(51) | | NAREIT FFO | $167 | $175 | | Core FFO | $175 | $183 | | Core FFO per Diluted Share (USD) | $1.38 | $1.44 | [Company Information](index=8&type=section&id=Company%20Information) [Company Overview](index=8&type=section&id=Company%20Overview) Piedmont Realty Trust is a self-managed real estate company specializing in Class A office properties, primarily in U.S. Sunbelt markets - Piedmont is a fully integrated, self-managed real estate company focused on **Class A office properties**[25](index=25&type=chunk) - The company operates a portfolio of **16 million square feet**, primarily located in major **U.S. Sunbelt markets**[25](index=25&type=chunk) - Senior unsecured notes are **investment-grade rated** by Moody's, Standard & Poor's, and Fitch Ratings[25](index=25&type=chunk) [Research Coverage & Credit Ratings](index=9&type=section&id=Research%20Coverage%20%26%20Credit%20Ratings) The company is covered by equity research analysts, with issuer credit ratings of Baa3 (Stable) from Moody's, BB+ (Stable) from S&P, and BBB- (Stable) from Fitch Credit Ratings | Rating Agency | Issuer Credit Rating | Senior Unsecured Notes Rating | | :--- | :--- | :--- | | Moody's | Baa3 (Stable) | Baa3 | | Standard & Poor's | BB+ (Stable) | BBB- | | Fitch | BBB- (Stable) | BBB- | [Portfolio Statistics & Key Performance Indicators](index=10&type=section&id=Portfolio%20Statistics%20%26%20Key%20Performance%20Indicators) [Quarterly Performance Trends](index=10&type=section&id=Quarterly%20Performance%20Trends) Q2 2025 saw the portfolio's leased percentage at **88.7%**, Core FFO at **$0.36 per diluted share**, and average net debt to Core EBITDA at **6.9x** Key Performance Indicators (Quarterly Trend) | Metric | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Leased percentage | 88.7% | 88.1% | 88.4% | 88.8% | 87.3% | | Total square feet leased (sq ft) | 712k | 363k | 433k | 461k | 1,038k | | Core FFO per share (USD) | $0.36 | $0.36 | $0.37 | $0.36 | $0.37 | | Same store NOI - cash | -2.0% | -2.0% | 0.9% | -0.8% | 5.7% | | Total debt - GAAP (in billions USD) | $2.18 | $2.19 | $2.22 | $2.22 | $2.22 | Key Debt Ratios (Quarterly Trend) | Ratio | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Net debt / Total gross assets | 40.3% | 40.3% | 39.2% | 39.0% | 39.1% | | Avg net debt to Core EBITDA (ttm) | 6.9x | 6.9x | 6.8x | 6.7x | 6.6x | | Fixed charge coverage ratio | 2.1x | 2.2x | 2.2x | 2.1x | 2.3x | [Financials](index=12&type=section&id=Financials) [Consolidated Balance Sheets](index=12&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were approximately **$4.0 billion**, total liabilities **$2.4 billion**, and total stockholders' equity **$1.5 billion** Balance Sheet Summary (as of June 30, 2025) | Account | Amount (in thousands) | | :--- | :--- | | Total Real Estate Assets | $3,417,231 | | Cash and Cash Equivalents | $3,314 | | **Total Assets** | **$3,980,263** | | Total Debt (Unsecured & Secured) | $2,177,752 | | **Total Liabilities** | **$2,432,253** | | **Total Stockholders' Equity** | **$1,548,010** | [Consolidated Statements of Income](index=13&type=section&id=Consolidated%20Statements%20of%20Income) Q2 2025 total revenues were **$140.3 million**, with a net loss of **$16.8 million** (or **$0.14 per share**), driven by debt extinguishment and higher interest Income Statement Summary (Three Months Ended) | (in thousands) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total Revenues | $140,292 | $143,262 | | Property Operating Costs | $55,610 | $58,565 | | Interest Expense | $(31,954) | $(29,569) | | Loss on Early Extinguishment of Debt | $(7,500) | $— | | **Net Loss Applicable to Piedmont** | **$(16,808)** | **$(9,809)** | | **Net Loss Per Share** | **$(0.14)** | **$(0.08)** | [Funds From Operations & Adjusted Funds From Operations](index=15&type=section&id=Funds%20From%20Operations%20%26%20Adjusted%20Funds%20From%20Operations) Q2 2025 NAREIT FFO was **$37.0 million** (**$0.30/share**), Core FFO **$44.5 million** (**$0.36/share**), and Adjusted FFO (AFFO) **$16.2 million** FFO Reconciliation Summary (Three Months Ended June 30) | (in thousands, except per share) | 2025 | 2024 | | :--- | :--- | :--- | | GAAP Net Loss | $(16,808) | $(9,809) | | Depreciation & Amortization | $55,044 | $56,560 | | NAREIT FFO | $37,012 | $46,751 | | Loss on early extinguishment of debt | $7,500 | $— | | **Core FFO** | **$44,512** | **$46,751** | | **Core FFO per share (diluted)** | **$0.36** | **$0.37** | | **Adjusted FFO (AFFO)** | **$16,241** | **$24,685** | [Same Store Net Operating Income](index=16&type=section&id=Same%20Store%20Net%20Operating%20Income) Q2 2025 Same Store NOI decreased **2.0%** cash basis due to lease timing, while increasing **1.7%** accrual basis due to straight-line rent effects Same Store NOI Growth (YoY) | Period | Cash Basis | Accrual Basis | | :--- | :--- | :--- | | **Three Months Ended 6/30/2025** | (2.0)% | 1.7% | | **Six Months Ended 6/30/2025** | (2.2)% | 2.3% | - The difference between cash and accrual NOI is largely driven by a **69.4% increase in straight-line rent effects** for the quarter, indicating significant rent escalations and abatements in newly signed leases[52](index=52&type=chunk) [Debt Summary](index=19&type=section&id=Debt%20Summary) As of June 30, 2025, total principal debt was **$2.2 billion** with a **5.99%** weighted average interest rate and **49.3 months** weighted average maturity Debt Composition (as of June 30, 2025) | Debt Type | Principal Outstanding (in thousands USD) | Weighted Avg. Interest Rate | Weighted Avg. Maturity (months) | | :--- | :--- | :--- | :--- | | Fixed Rate | $2,048,101 | 6.02% | 48.5 | | Floating Rate | $151,000 | 5.60% | 60.0 | | **Total** | **$2,199,101** | **5.99%** | **49.3** | Debt Maturities by Year | Maturity Year | Principal Outstanding (in thousands USD) | Percentage of Total Debt | | :--- | :--- | :--- | | 2025-2027 | $— | — | | 2028 | $1,048,101 | 47.7% | | 2029 | $400,000 | 18.2% | | 2030 | $451,000 | 20.5% | | 2032 | $300,000 | 13.6% | - The company is in compliance with all its **bank and bond debt covenants** as of **June 30, 2025**, with significant cushion on key metrics like **leverage ratio** and **fixed charge coverage**[62](index=62&type=chunk) [Operational & Leasing Information](index=22&type=section&id=Operational%20%26%20Leasing%20Information) [Leasing Activity & Occupancy](index=22&type=section&id=Leasing%20Activity%20%26%20Occupancy) Portfolio leased percentage rose to **88.7%** in Q2 2025, with cash rental rates increasing **7.3%** for new leases and a **$71 million** future annual cash rent pipeline - The portfolio's **leased percentage rose to 88.7%** at the end of **Q2 2025**, a **140 basis point increase** year-over-year[69](index=69&type=chunk) Rental Rate Roll Up (Q2 2025) | Metric | % Change | | :--- | :--- | | Cash Rents | 7.3% | | Accrual Rents | 13.6% | - Contractual tenant improvements and leasing commissions for leases signed in **Q2 2025** totaled **$7.52 per square foot per year of lease term**[75](index=75&type=chunk) - As of **June 30, 2025**, the company had **730,000 sq ft of uncommenced leases** for vacant space, representing **$28.6 million in future annual cash rent**[83](index=83&type=chunk) - An additional **1.3 million sq ft of leases were under abatement**, representing **$41.9 million in future annual cash rent**[83](index=83&type=chunk) [Lease Expiration Schedule](index=27&type=section&id=Lease%20Expiration%20Schedule) The portfolio has a **6.0-year** weighted average remaining lease term, with **4.2%** of rentable SF expiring in remainder of 2025 and **10.0%** in 2026 - The **weighted average remaining lease term** for the portfolio is **6.0 years** as of **June 30, 2025**[86](index=86&type=chunk) Annual Lease Expirations (% of Rentable Square Footage) | Expiration Year | % of Rentable SF | | :--- | :--- | | 2025 | 4.2% | | 2026 | 10.0% | | 2027 | 9.0% | | 2028 | 8.2% | | 2029 | 8.8% | | Thereafter | 57.8% | [Diversification Tables](index=30&type=section&id=Diversification%20Tables) [Tenant, Industry, and Geographic Diversification](index=30&type=section&id=Tenant%2C%20Industry%2C%20and%20Geographic%20Diversification) Top 10 tenants account for **25.5%** of ALR, **46.5%** of ALR from investment-grade/governmental tenants, with Atlanta (**31.5%**) and Dallas (**19.5%**) as largest markets - The top tenant, **State of New York**, contributes **5.0% of Annualized Lease Revenue (ALR)**. The **top 10 tenants combined contribute 25.5% of ALR**[97](index=97&type=chunk) - **46.5% of ALR** is derived from **investment-grade rated tenants** (BBB-/Baa3 or higher) and **governmental entities**[100](index=100&type=chunk)[103](index=103&type=chunk) - The largest industry concentrations are **Business Services (14.6% of ALR)**, **Engineering/Accounting/Management (13.5%)**, and **Legal Services (10.8%)**[103](index=103&type=chunk) Geographic Diversification by ALR | Location | % of Annualized Lease Revenue | | :--- | :--- | | Atlanta | 31.5% | | Dallas | 19.5% | | Orlando | 11.6% | | Northern Virginia / D.C. | 9.9% | | New York | 9.6% | | Minneapolis | 8.5% | | Boston | 5.8% | | Other | 3.6% | - The portfolio is split between **Urban Infill/Suburban locations (59.8% of ALR)** and **Central Business District (CBD) locations (40.2% of ALR)**[109](index=109&type=chunk) [Portfolio Information](index=35&type=section&id=Portfolio%20Information) [Portfolio Detail and Investment Activity](index=35&type=section&id=Portfolio%20Detail%20and%20Investment%20Activity) The in-service portfolio comprises **29 projects** (**14.9 million sq ft**) at **88.7% leased**, with **three projects** (**788,000 sq ft**) out-of-service for redevelopment - The **in-service portfolio comprises 29 projects** and **14.9 million sq ft**, with a **leased percentage of 88.7%** and a commenced leased percentage of **85.0%**[111](index=111&type=chunk)[112](index=112&type=chunk) - **Three projects totaling 788,000 sq ft** in Orlando and Minneapolis are currently **out-of-service for redevelopment** and are **30.5% pre-leased**[112](index=112&type=chunk)[114](index=114&type=chunk) Recent Dispositions | Property | Market | Disposition Period | Sale Price (millions USD) | | :--- | :--- | :--- | :--- | | One Lincoln Park | Dallas | Q1 2024 | $54.0 | | 750 West John Carpenter | Dallas | Q3 2024 | $23.0 | | 80 and 90 Central | Boston | Q2 2025 | $29.5 | - The company owns **57.2 acres of developable land** with a book value of **$50.2 million**, primarily located in Atlanta, Dallas, and Orlando[117](index=117&type=chunk) [Supporting Information](index=38&type=section&id=Supporting%20Information) [Definitions and Non-GAAP Reconciliations](index=38&type=section&id=Definitions%20and%20Non-GAAP%20Reconciliations) This section defines and reconciles non-GAAP financial measures including FFO, Core FFO, AFFO, EBITDAre, and Same Store NOI to comparable GAAP figures - Provides definitions for **non-GAAP measures** including **Funds From Operations (FFO)**, **Core FFO**, **Adjusted FFO (AFFO)**, **Core EBITDA**, and **Same Store Net Operating Income (Same Store NOI)**[119](index=119&type=chunk)[122](index=122&type=chunk)[129](index=129&type=chunk) - Includes detailed tables reconciling **GAAP Net Income (Loss)** to **NAREIT FFO**, **Core FFO**, and **AFFO** on a quarterly basis for the last **five quarters**[133](index=133&type=chunk) - Contains reconciliations of **GAAP Net Income (Loss)** to **Same Store Net Operating Income** on both a cash and accrual basis[134](index=134&type=chunk)

Core Insights - Piedmont Realty Trust has released its financial and operational results for Q2 2025, indicating ongoing performance evaluation and transparency to investors [1] - A conference call is scheduled for July 29, 2025, at 9:00 a.m. ET to discuss the second quarter performance and recent events [2] Company Overview - Piedmont Realty Trust is a fully integrated, self-managed real estate investment company, focusing on delivering exceptional office environments [4] - The company owns, manages, develops, and operates 16 million square feet of Class A properties across major U.S. Sunbelt markets [4] - Piedmont Realty Trust is recognized for its hospitality-driven approach and commitment to enhancing workplace experiences through its "Piedmont PLACEs" [4]

OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT of 1934 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________ _______________________________________________________________________________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT of 1934 For the Quarterly Period Ended June 30, 2025 For the Transition Period From ...

Core Viewpoint - Piedmont Realty Trust will release its second quarter financial results on July 28, 2025, after market close, with a conference call scheduled for July 29, 2025, at 9:00 a.m. ET to discuss performance and recent events [1]. Company Overview - Piedmont Realty Trust is a fully integrated, self-managed real estate investment company focused on delivering exceptional office environments, managing 16 million square feet of Class A properties across major U.S. Sunbelt markets [3]. - The company is recognized for its hospitality-driven approach and commitment to transforming buildings into premier "Piedmont PLACEs" that enhance clients' workplace experiences [3]. Conference Call Details - The conference call will be broadcast live in listen-only mode on the company's investor relations website [1]. - Analysts are advised to dial in at least fifteen minutes prior to the start time for a timely connection, with domestic and international numbers provided [2]. - A replay of the conference call will be available until August 12, 2025, with specific access codes for domestic and international listeners [2].

Core Viewpoint - Piedmont Office Realty Trust has rebranded to Piedmont Realty Trust, Inc. to better align with its focus on creating premium work environments known as Piedmont PLACEs [1][2]. Company Strategy - The company aims to transform traditional office spaces into environments that foster collaboration, convenience, and a sense of community, catering to modern employee needs [2]. - Piedmont PLACEs are designed to enhance the workplace experience, regardless of location, by providing intentional spaces that promote service and connection [2][4]. Company Overview - Piedmont Realty Trust is a fully integrated, self-managed real estate investment company that owns, manages, develops, and operates 16 million square feet of Class A properties across major U.S. Sunbelt markets [4]. - The company is recognized for its hospitality-driven approach and commitment to enhancing client workplace experiences through its premier Piedmont PLACEs [4].

Group 1 - The article discusses the short time horizon some investors have when trading stocks, suggesting that a focus on long-term investment strategies is more beneficial [1] - The author emphasizes the importance of identifying high-yield Real Estate Investment Trusts (REITs) that provide stable passive income and potential mean reversion [1] - The investment approach is rooted in fundamental economic insights to assess market trends, prioritizing value and income-focused strategies [1] Group 2 - The author has a beneficial long position in the shares of PDM, indicating a personal investment interest in the company [2] - The article expresses the author's opinions without any external compensation, highlighting an independent analysis [2] - There is a disclaimer regarding the lack of business relationships with any mentioned companies, reinforcing the independence of the analysis [2]

Company Overview - Piedmont Office Realty Trust, Inc. is a self-managed real estate investment trust (REIT) focused on owning, managing, developing, and redeveloping Class A office properties primarily in the Sunbelt region, with a portfolio valued at approximately $5 billion and comprising around 16 million square feet [3]. Leasing Activity - In the second quarter of 2025, the company has completed over 500,000 square feet of leasing, with 350,000 square feet attributed to new tenants, and year-to-date leasing volume totals over 850,000 square feet [1]. - Approximately 70% of the new tenant leases are for currently vacant space, indicating strong demand for available properties [1]. - The company signed two significant long-term leases: 93,000 square feet with a global professional services firm in Dallas and 84,000 square feet with a global frozen food distributor in Minneapolis [1]. Operational Performance - The leasing momentum has accelerated in April and May, with no observed slowdown in leasing demand or decision-making despite economic challenges [2]. - The client pipeline remains strong, with over 400,000 square feet of leases in legal documentation, more than half of which are for currently vacant space [2]. - There are 2.6 million square feet of leases in the proposal stage, reflecting the effectiveness of the company's investments and service quality [2]. Revised Guidance - The company has increased its 2025 leasing guidance to a range of 1.8 to 2.0 million square feet, up from the initial guidance of 1.4 to 1.6 million square feet [2].

Sometimes, I just feel lucky. As a contrarian investor with a long-term horizon, I'm just enjoying investing right now. Because Mr. Market seems to be losing his mind.I'm Luuk Wierenga, an economics teacher from the Netherlands with a strong focus on income investing. My investment journey began during COVID-19, and since then, I've specialized in identifying high-yield Real Estate Investment Trusts (REITS) that provide stable passive income and/or a possible mean reversion. As an educator, I apply fundamen ...

I ventured into investing in high school in 2011, mainly in REITs, preferred stocks, and high-yield bonds, starting a fascination with markets and the economy that has not faded despite the years. More recently I have been combining long stock positions with covered calls and cash secured puts. I approach investing purely from a fundamental long-term point of view. On Seeking Alpha I mostly cover REITs and financials, with occasional articles on ETFs and other stocks driven by a macro trade idea.Analyst’s D ...