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

Piedmont Office Realty Trust, Inc. (NYSE:PDM) Q1 2021 Earnings Conference Call April 29, 2021 10:00 AM ET Participants Eddie Guilbert - Executive Vice President of Finance and Treasurer, Piedmont Office Realty Trust, Inc. Brent Smith - President and Chief Executive Officer, Piedmont Office Realty Trust, Inc. Bobby Bowers - Chief Financial Officer, Piedmont Office Realty Trust, Inc. Analysts Anthony Paolone - JPMorgan Dave Rodgers - Robert W. Baird Michael Lewis - SunTrust Securities Daniel Ishmael - Green S ...

[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 ___________ ...

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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 ...