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Piedmont Office Realty Trust Reports Fourth Quarter and Annual 2024 Results
Piedmont Office Realty TrustPiedmont Office Realty Trust(US:PDM) Globenewswireยท2025-02-13 21:15

Financial Results - Piedmont Office Realty Trust reported a net loss of $30.0 million, or $0.24 per diluted share, for Q4 2024, compared to a net loss of $28.0 million, or $0.23 per diluted share, in Q4 2023 [4] - The company incurred impairment charges of $15.4 million in Q4 2024, down from $18.5 million in Q4 2023, and executive separation costs of $4.8 million [2][4] - NAREIT FFO applicable to common stock was $41.6 million for Q4 2024, down from $50.6 million in Q4 2023, with Core FFO at $46.4 million compared to $50.6 million in the prior year [2][4] Leasing Activity - Piedmont completed 433,000 square feet of leasing in Q4 2024, totaling 2.4 million square feet for the year, the highest annual leasing volume since 2015 [3][7] - New tenant leasing accounted for over 1 million square feet, representing 42% of the total leasing activity in 2024, the largest since 2016 [7] - The leased percentage of the in-service portfolio increased to 88.4% as of December 31, 2024, up from 87.1% a year earlier [7] Balance Sheet - As of December 31, 2024, total assets were $4.1 billion, with total debt at $2.2 billion and a weighted average cost of debt of 6.01% [5] - The company had cash and cash equivalents of $109.6 million and total liquidity of $710 million, including an unused $600 million line of credit [5][8] - The net principal amount of debt to total gross assets less cash was 39.2% [5] ESG and Operations - Five projects in Piedmont's portfolio received TOBY (The Outstanding Building of the Year) recognition in Q4 2024 [6] - Approximately 84% of the portfolio was ENERGY STAR rated, and 72% was LEED certified as of December 31, 2024 [9] Guidance for 2025 - The company provided guidance for 2025, projecting a net loss between $46 million and $49 million, with Core FFO per diluted share expected to be between $1.38 and $1.44 [11][14] - Anticipated interest expense for 2025 is projected to be approximately $127-129 million, reflecting a full year of higher interest rates [12]