Piedmont Office Realty Trust(PDM) - 2025 Q2 - Quarterly Report

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]