Financial Data and Key Metrics Changes - Core FFO per diluted share for Q1 2025 was $0.36, down from $0.39 in Q1 2024, primarily due to increased net interest expense and lower rental income from property sales and lease expirations [24] - AFFO generated during Q1 2025 was approximately $23.5 million, consistent with previous quarters, while CapEx returned to normalized levels [24] - The company has no final debt maturities until 2028 and approximately $500 million available under its revolving line of credit [24] Business Line Data and Key Metrics Changes - The company completed approximately 363,000 square feet of total leasing in Q1 2025, with about half related to new tenant leases [5][14] - Lease economics showed a 10-19% roll-up in rents on both cash and accrual bases, with average rental rates near $47 per square foot compared to $38 per square foot in 2023 [16] - The leasing pipeline remains strong with approximately 750,000 square feet executed or in a legal stage, and outstanding proposals at 3 million square feet [20] Market Data and Key Metrics Changes - The occupier market recovery is ongoing, with national employers increasing in-office mandates, although macroeconomic uncertainty has caused a slight slowdown in national gross leasing volume [6][7] - Sublease availability remains around 5%, with only 10,000 square feet expiring in 2025 [16] - The company noted that Atlanta was the most active segment, accounting for a third of the overall leasing volume in Q1 2025 [16] Company Strategy and Development Direction - The company has decided to suspend its dividend to fund long-term growth and retain earnings for capital expenditures related to leasing [11] - Management aims to focus on leasing momentum and increasing rental rates, which are expected to lead to FFO and cash flow growth [26] - The company is cautious about leveraging additional debt, prioritizing retained earnings for internal growth and maintaining a strong balance sheet [11][46] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about leasing prospects, with a strong pipeline and record levels of tour activity [20] - The company anticipates achieving its year-end lease percentage guidance of 89% to 90% [20] - Management is focused on maintaining liquidity and improving the balance sheet while navigating economic uncertainties [46] Other Important Information - The company completed its last refinancing activity in Q1 2025, including paying off a $250 million term loan and extending a $600 million line of credit [6] - The company has a backlog of $67 million in annualized revenue from leases yet to commence or in their free rent period [10] Q&A Session Summary Question: Thoughts on leasing pipeline and guidance maintenance - Management noted a strong leasing pipeline of approximately $750,000, with good momentum in April, but remains cautious due to macro uncertainties [30][32] Question: Historical gap between lease percentage and economic lease percentage - Management indicated that the suspension of the dividend would provide additional cash flow for internal growth, with a focus on leasing momentum [35][36] Question: Insights on the dividend suspension and its implications - Management explained that the decision to suspend the dividend was influenced by the need to fund leasing momentum and maintain a strong balance sheet, with retained earnings earmarked for leasing and capital expenditures [40][44]

Financial Data and Key Metrics Changes - Core FFO per diluted share for Q1 2025 was $0.36, down from $0.39 in Q1 2024, primarily due to increased net interest expense and lower rental income from property sales and lease expirations [24][25] - AFFO generated during Q1 2025 was approximately $23.5 million, consistent with previous quarters, while CapEx returned to normalized levels [25] Business Line Data and Key Metrics Changes - The company completed approximately 363,000 square feet of total leasing in Q1 2025, with about half related to new tenant leases [6][16] - Leasing capital spend was $6.69 per square foot, slightly elevated due to law firm deals, resulting in average rental rates near $47 per square foot compared to $38 per square foot in 2023 [17] Market Data and Key Metrics Changes - The occupier market recovery is ongoing, with national employers increasing in-office mandates, leading to a demand for more space [8] - Despite a slowdown in national gross leasing volume due to macroeconomic uncertainty, net absorption improved by 60% compared to Q1 2024 [9] Company Strategy and Development Direction - The company has decided to suspend its dividend to fund long-term growth and retain earnings for capital expenditures and leasing commissions [12][13] - Piedmont aims to leverage its modernized properties and is experiencing record levels of tenant interest, with a strong leasing pipeline of approximately 750,000 square feet executed or in legal stages [11][21] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about leasing prospects, with a strong pipeline and proposals exceeding 3 million square feet [21][33] - The company anticipates achieving its 2025 leasing goals, with potential upward revisions in guidance depending on market conditions [31][32] Other Important Information - The company completed refinancing activities, including paying off a $250 million term loan and extending a $600 million line of credit, with no final debt maturities until 2028 [8][25] - The company is focused on internal growth and maintaining a strong balance sheet, with a commitment to remain investment grade [46][47] Q&A Session Summary Question: Inquiry about leasing pipeline and guidance - Management confirmed a strong leasing pipeline of approximately $750,000 square feet, with good momentum and potential for upward revisions in guidance depending on market conditions [30][31] Question: Clarification on the historical spread between lease percentage and economic lease percentage - Management indicated that the suspension of the dividend would provide additional cash flow for internal growth, with a focus on leasing momentum and potential for excess retained earnings to pay down debt in the future [36][37] Question: Discussion on the dividend suspension and its implications - Management explained that the decision to suspend the dividend was influenced by the need to fund leasing momentum and maintain a strong balance sheet, with a focus on internal growth rather than relying on external financing [40][44]

Financial Data and Key Metrics Changes - Core FFO per diluted share for Q1 2025 was $0.36, down from $0.39 in Q1 2024, primarily due to increased net interest expense and lower rental income from property sales and lease expirations [23][24] - AFFO generated during Q1 2025 was approximately $23.5 million, consistent with previous quarters, while CapEx returned to normalized levels [24] Business Line Data and Key Metrics Changes - The company completed approximately 363,000 square feet of total leasing in Q1 2025, with about half related to new tenant leases [6][16] - Lease economics showed a 10.19% increase in rents on both cash and accrual bases for the quarter [17] Market Data and Key Metrics Changes - The occupier market recovery is ongoing, with national employers increasing in-office mandates, leading to a demand for more space [8] - National gross leasing volume slowed moderately in Q1 2025 after reaching post-pandemic highs in late 2024, with net absorption turning negative due to federal lease terminations [9] Company Strategy and Development Direction - The company has decided to suspend its dividend to fund long-term growth and retain earnings for capital expenditures related to tenant improvements and leasing commissions [12][13] - The focus remains on leasing and managing high-quality work environments, with a strong emphasis on capital deployment for leasing momentum [26] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding leasing prospects, with a strong pipeline of approximately 750,000 square feet executed or in legal stages [21] - The company anticipates achieving its year-end lease percentage guidance of 89% to 90% if the economic environment remains stable [22] Other Important Information - The company completed its refinancing activities, including paying off a $250 million term loan and extending a $600 million line of credit [8] - The backlog of annualized revenue from leases yet to commence increased from $46 million to $67 million [11] Q&A Session Summary Question: Inquiry about leasing pipeline and guidance maintenance - Management noted a strong leasing pipeline of approximately $750,000 square feet, with $275,000 executed in April, but maintained guidance due to macroeconomic uncertainties [29][30] Question: Clarification on the historical spread between lease percentage and economic lease percentage - Management indicated that the suspension of the dividend would provide additional cash flow for internal growth, with a focus on leasing momentum [35][36] Question: Discussion on the dividend suspension and its implications - Management explained that the decision was influenced by the need to fund leasing momentum and maintain investment-grade credit ratings, with retained earnings earmarked for leasing capital [39][40][46]

Piedmont Office (PDM) reported $142.69 million in revenue for the quarter ended March 2025, representing a year-over-year decline of 1.3%. EPS of $0.36 for the same period compares to -$0.22 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $141.54 million, representing a surprise of +0.81%. The company delivered an EPS surprise of +2.86%, with the consensus EPS estimate being $0.35.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wal ...

Core Viewpoint - Piedmont Office (PDM) reported quarterly funds from operations (FFO) of $0.36 per share, exceeding the Zacks Consensus Estimate of $0.35 per share, but down from $0.39 per share a year ago, indicating a slight decline in performance year-over-year [1][2] Financial Performance - The company posted revenues of $142.69 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.81%, although this is a decrease from year-ago revenues of $144.54 million [2] - Over the last four quarters, Piedmont Office has surpassed consensus revenue estimates three times [2] Stock Performance and Outlook - Piedmont Office shares have declined approximately 25.7% since the beginning of the year, contrasting with the S&P 500's decline of 6.1% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the sustainability of FFO expectations [3][4] Estimate Revisions and Market Position - The current estimate revisions trend for Piedmont Office is unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] - The consensus FFO estimate for the upcoming quarter is $0.35 on revenues of $141.43 million, and for the current fiscal year, it is $1.43 on revenues of $564.95 million [7] Industry Context - The REIT and Equity Trust - Other industry, to which Piedmont Office belongs, is currently ranked in the bottom 31% of over 250 Zacks industries, suggesting a challenging environment for the stock [8]

EXHIBIT 99.1 Piedmont Office Realty Trust, Inc. Earnings Release and Supplemental Information Index | | Page | | Page | | --- | --- | --- | --- | | Introduction | | Diversification Tables | | | Forward-Looking Statements | 3 | Tenant Diversification | 29 | | Earnings Release | 4 | Tenant Credit Rating & Lease Distribution | 30 | | Company Information | 8 | Industry Diversification | 31 | | Research Coverage | 9 | Geographic Diversification | 32 | | Portfolio Statistics & Key Performance Indicators | 10 | Ge ...

Table of Contents For the Transition Period From to UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Commission file number 001-34626 ____________________________________________________ _______________________________________________________________________________________ FORM 10-Q Piedmont Office Realty Trust, Inc. (Mark One) (Exact name of registrant as specified in its charter) ____________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) ...

Core Insights - Piedmont Office Realty Trust, Inc. has released its financial and operational results for Q1 2025 [1] - A conference call is scheduled for April 29, 2025, to discuss the Q1 performance and recent events [2] - Piedmont's portfolio is valued at approximately $5 billion, consisting of around 16 million square feet of Class A office properties [3] Financial Performance - The financial results for Q1 2025 have been made available for review [1] - The management team will provide insights into the company's performance during the upcoming conference call [2] Company Overview - Piedmont is a self-managed real estate investment trust (REIT) focused on high-quality office properties primarily in the Sunbelt region [3] - The company holds an investment-grade rating from Moody's (Baa3) and Fitch (BBB-) [3] - Piedmont has been recognized as a 2024 ENERGY STAR Partner of the Year – Sustained Excellence [3]

Core Viewpoint - Piedmont Office Realty Trust will release its first quarter financial results on April 28, 2025, followed by a conference call on April 29, 2025, to discuss performance and recent events [1]. Company Overview - Piedmont Office Realty Trust, Inc. is a real estate investment trust (REIT) focused on owning, managing, developing, and operating high-quality Class A office properties, primarily in the Sunbelt region [3]. - The company has a portfolio valued at approximately $5 billion, consisting of around 16 million square feet of predominantly unencumbered properties [3]. - Piedmont is rated investment-grade by Moody's (Baa3) and Fitch (BBB-) and was recognized as a 2024 ENERGY STAR Partner of the Year – Sustained Excellence [3].

Company Appointments - Piedmont Office Realty Trust, Inc. announced the appointment of three new members to its Board of Directors: Deneen Donnley, Stephen E. Lewis, and Jeffrey J. Donnelly, bringing the total number of board members to ten [1] - Deneen Donnley is currently the Senior Vice President and General Counsel for Consolidated Edison and has held various leadership roles in her career, including at USAA [2] - Stephen E. Lewis served as the Chair and CEO of Troutman Pepper, where he had a 33-year career and was involved in strategic transactions, including mergers and acquisitions [3] - Jeffrey J. Donnelly is the CEO of DiamondRock Hospitality and has extensive experience in real estate investment, having managed assets totaling over $2 billion [4] Company Overview - Piedmont Office Realty Trust is a real estate investment trust (REIT) focused on owning, managing, and developing high-quality Class A office properties, primarily in the Sunbelt region [5] - The company has a portfolio valued at approximately $5 billion, consisting of around 16 million square feet of predominantly unencumbered properties [5] - Piedmont is recognized as a 2024 ENERGY STAR Partner of the Year – Sustained Excellence, highlighting its commitment to sustainability [5]