Core Insights - Piedmont Realty Trust (PDM) has completed over 500,000 square feet of leases, with more than 400,000 square feet from new tenants in Q3 through September 9, 2025 [1][7] - The company is experiencing strong leasing activity, particularly in Minneapolis and the Sunbelt regions, with a goal to lease between 2.2 and 2.4 million square feet by 2025 [3][7] - The leasing of nearly 85% of new tenant leases pertains to previously vacant spaces, contributing to a significant increase in occupancy and rental income [2] Leasing Activity - Year-to-date leasing volume has exceeded 1.5 million square feet, indicating robust demand [2] - The out-of-service portfolio is now over 50% leased, with approximately 178,000 square feet of new tenant leases related to this segment [2] Management Commentary - The CEO, Brent Smith, noted that July and August 2025 saw record levels of tenant demand, with five leases signed for full floors, showcasing the appeal of renovated buildings [3] - The company remains well-positioned to navigate market challenges, supported by long-term leases with creditworthy tenants [4] Stock Performance - Over the past three months, shares of Piedmont Realty Trust have increased by 11.5%, outperforming the industry growth of 0.3% [4]

Company Overview - Piedmont Realty Trust, Inc. is a fully integrated, self-managed real estate investment company focused on delivering exceptional office environments, owning and managing approximately 16 million square feet of Class A properties across major U.S. Sunbelt markets [3] Leasing Activity - The company has completed over 500,000 square feet of leasing in the third quarter, with more than 400,000 square feet related to new tenants, indicating strong leasing momentum [1][2] - Year-to-date leasing volume totals over 1.5 million square feet, with approximately 178,000 square feet of new tenant leases coming from the out-of-service portfolio, which is now over 50% leased [1] Market Demand - Demand from clients has been particularly strong in the Minneapolis and Sunbelt markets, with five transactions completed for a full floor or greater, showcasing the appeal of the renovated buildings and customer-centric approach [2] - The company has a late-stage pipeline of over 400,000 square feet, with two-thirds attributable to new tenancy, reinforcing confidence in achieving the 2025 total leasing goal of 2.2 to 2.4 million square feet [2]

Core Viewpoint - Piedmont Realty Trust (PDM) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements, particularly due to institutional investors' reliance on these estimates for valuation [4][6]. - For Piedmont Realty Trust, the recent upgrade reflects an improvement in the company's underlying business, suggesting that investor sentiment may drive the stock price higher [5][10]. Earnings Estimate Revisions - Analysts have raised their earnings estimates for Piedmont Realty Trust, with the Zacks Consensus Estimate for the fiscal year ending December 2025 projected at $1.43 per share, showing no year-over-year change but a 0.4% increase over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% of stocks receiving a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [9][10]. - The upgrade of Piedmont Realty Trust to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks. Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator ...

Group 1 - The article expresses a bullish outlook on Piedmont Realty Trust (NYSE: PDM), emphasizing its long-term prospects as an A-tier office REIT [1] - The author specializes in identifying Real Estate Investment Trusts (REITs) that are currently out-of-favor, indicating a contrarian investment strategy [1] - The investment approach is based on fundamental economic insights to assess the intrinsic value of stocks, with a focus on long-term investment horizons [1]

Financial Data and Key Metrics Changes - Core FFO per diluted share for Q2 2025 was $0.36, down from $0.37 in Q2 2024, primarily due to higher net interest expenses from refinancing activities [24] - AFFO generated during Q2 2025 was approximately $16 million [25] - The company anticipates annual core FFO guidance in the range of $1.38 to $1.44 per diluted share, with no material changes to previously published assumptions [26] Business Line Data and Key Metrics Changes - Total leasing success in Q2 2025 reached 712,000 square feet, with year-to-date leasing exceeding 1,000,000 square feet [6] - Approximately two-thirds of Q2 leasing activity was related to new tenant leases, marking the highest new tenant leasing in a single quarter since 2018 [6][7] - Rental rates for spaces vacant less than a year reflected over 7% increases, with almost 14% roll-ups on a cash and accrual basis, respectively [9] Market Data and Key Metrics Changes - Demand for office space is increasing, with JLL Research noting a 5.8% growth in active space requirements, the highest level of demand since 2021 [10] - National occupancy remained stable, with Piedmont observing positive absorption in four of its operating markets [10] - The out-of-service portfolio was over 30% leased by the end of Q2 and is expected to reach stabilization by the end of next year [8] Company Strategy and Development Direction - The company is focusing on creating modern work environments and is well-positioned to benefit from the flight to quality in office buildings [6] - The leasing guidance for 2025 has been increased to a range of 2,200,000 to 2,400,000 square feet, reflecting an increase of over 800,000 square feet compared to the original guidance [11] - The company plans to continue selective capital deployment to drive lease percentage and increase rental rates, aiming for FFO and cash flow growth [28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about leasing prospects, citing strong demand from large tenants and a lack of new office construction [10] - The company anticipates that the majority of new leasing will benefit earnings in 2026 and beyond [11] - Management noted that the current high interest rates and inflation are expected to diminish new office supply and push construction costs higher, which will support rental rate growth [9] Other Important Information - The company repurchased approximately $68 million of its bonds during the quarter, resulting in a $7.5 million loss on early extinguishment of debt, but expected to save $7.5 million in total interest over the next three years [25] - The company has approximately $450 million of availability under its revolving line of credit and no final debt maturities until 2028 [26] Q&A Session Summary Question: What are the longer-term goals for exposures within markets? - Management indicated a focus on increasing exposure to the Sunbelt markets, aiming to raise the current 70% exposure to around 80% [34] Question: Can you touch on some of the larger pending vacancies and activity? - Management highlighted a strong pipeline with about 2,200,000 square feet of outstanding proposals, with significant activity in Atlanta and Dallas [37] Question: What offsets should be considered in terms of guidance? - Management noted that while leasing strength is strong, most of it will translate into growth in 2026 and beyond, which is why the bottom line guidance was not revised up [48] Question: How do you think about the buyer group and potential outcomes? - Management mentioned that the sales market is improving, particularly for core quality assets, and they are focused on disposing of non-core assets [54] Question: What is driving the reinvigoration of leasing activity? - Management identified several factors, including the need for larger tenants to upgrade their office experience and the return-to-office mandates [64]

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]

Financial Performance - Rental and tenant reimbursement revenue for the three months ended June 30, 2025, was $133,954 thousand, a decrease of 4.97% compared to $136,670 thousand for the same period in 2024[21] - Net loss applicable to Piedmont for the six months ended June 30, 2025, was $26,912 thousand, compared to a net loss of $37,572 thousand for the same period in 2024, indicating an improvement of approximately 28.5%[21] - The company reported a comprehensive loss applicable to Piedmont of $(16,106) thousand for the three months ended June 30, 2025, compared to $(9,899) thousand for the same period in 2024, indicating a worsening of approximately 62.5%[23] - For the six months ended June 30, 2025, Piedmont reported a net loss of $26.9 million compared to a net loss of $37.6 million for the same period in 2024, reflecting a 28% improvement in net loss year-over-year[29] - Total revenues for the six months ended June 30, 2025, were $282,978,000, a decrease from $287,800,000 in the same period of 2024, reflecting a decline of about 1.9%[73] - Net operating income (NOI) for the six months ended June 30, 2025, was $169,531,000, slightly down from $169,755,000 in the same period of 2024, showing a decrease of approximately 0.1%[76] - Piedmont's total revenues for the three months ended June 30, 2025, were $140,292,000, compared to $143,262,000 in the same period of 2024, indicating a decrease of approximately 2.0%[72] Assets and Liabilities - Total assets decreased to $3,980,263 thousand as of June 30, 2025, from $4,114,651 thousand at December 31, 2024, representing a decline of approximately 3.25%[19] - Total liabilities decreased to $2,432,253 thousand as of June 30, 2025, from $2,526,524 thousand at December 31, 2024, reflecting a reduction of about 3.73%[19] - Total stockholders' equity decreased to $1,548,010 thousand as of June 30, 2025, from $1,588,127 thousand at December 31, 2024, a decline of approximately 2.52%[19] - Piedmont's total outstanding debt as of June 30, 2025, was approximately $2.0 billion, with an average effective interest rate of 6.02% per annum[142] - As of June 30, 2025, Piedmont's total outstanding debt was $2,177.75 million, with a weighted average interest rate of 5.99%[53] Cash Flow and Capital Expenditures - Cash and cash equivalents significantly decreased to $3,314 thousand as of June 30, 2025, from $109,637 thousand at December 31, 2024, a decline of approximately 96.97%[19] - Piedmont's cash, cash equivalents, and restricted cash decreased to $7.8 million as of June 30, 2025, from $143.8 million at the end of the previous period[29] - Piedmont's net cash provided by operating activities for the six months ended June 30, 2025, was $53.8 million, down from $90.2 million in the same period of 2024[29] - Dividends paid to common stockholders for the six months ended June 30, 2025, totaled $30.9 million, compared to $46.1 million in the same period of 2024[29] Debt and Interest - The company recorded a loss on early extinguishment of debt of $8,000 thousand for the six months ended June 30, 2025, compared to a loss of $386 thousand for the same period in 2024, indicating a significant increase in losses[21] - Interest payments for the three months ended June 30, 2025, were approximately $14.3 million, compared to $16.7 million for the same period in 2024, reflecting a decrease of 14.4%[45] - Piedmont had $151.0 million outstanding on its $600 million Unsecured 2022 Line of Credit, which has a stated rate of Adjusted SOFR plus 1.05% per annum, resulting in a total interest rate of 5.60%[143] - Piedmont's interest rate swap agreements as of June 30, 2025, had a notional amount of $325 million with a weighted-average fixed interest rate of 5.48%[141] Impairments and Gains - Piedmont recognized an impairment charge of approximately $17.5 million for the 750 West John Carpenter Freeway building due to a shortened hold period and inability to recover carrying value from future cash flows[55] - An additional impairment charge of approximately $0.9 million was recognized for the sale of One Lincoln Park in Dallas, Texas, during the same period[56] - During the six months ended June 30, 2025, Piedmont sold properties including One Lincoln Park for net sales proceeds of $53.308 million and recognized a gain of $0.7 million related to the 750 West John Carpenter building[60] Stockholder Information - The weighted-average common shares outstanding for the six months ended June 30, 2025, were 124,359,010, compared to 123,876,562 for the same period in 2024, showing a slight increase of about 0.39%[21] - Piedmont's stock-based compensation expense for the six months ended June 30, 2025, was approximately $4.6 million, compared to $4.1 million for the same period in 2024[66] - As of June 30, 2025, Piedmont had approximately $18.7 million of unrecognized compensation cost related to unvested and potential stock awards, to be recorded over a weighted-average vesting period of about two years[66] - The weighted-average grant date fair value per share of deferred stock granted during the six months ended June 30, 2025, was $8.15[64] Portfolio and Occupancy - As of June 30, 2025, Piedmont's portfolio consisted of 29 in-service projects totaling approximately 14.9 million square feet, with an occupancy rate of 88.7%[32]