Financial Data and Key Metrics Changes - The company's net operating income (NOI) for the first quarter was $26 million, which is $500,000 higher than the previous quarter, driven by higher revenue and lower operating expenses [15] - Core funds from operations (FFO) were reported at $12.3 million or $0.30 per share, an increase of $600,000 from the previous quarter [15] - Adjusted funds from operations (AFFO) were $6.5 million or $0.16 per share, with no single tenant improvement or leasing commission impacting AFFO by more than $500,000 [16] - Same store cash NOI increased by 4.4% or $1.1 million compared to the first quarter of 2024 [16] Business Line Data and Key Metrics Changes - The company completed 144,000 square feet of new and renewal leasing in the first quarter, with the largest lease being a 34,000 square foot new lease at the Papago Tech property in Phoenix [11] - The Greenwood Boulevard property in Orlando was fully leased to a single tenant, with a new 66,000 square foot tenant set to take occupancy later this year [12] - The overall portfolio occupancy ended the quarter at 84.9%, slightly lower than the previous quarter due to known vacates [17] Market Data and Key Metrics Changes - Nationally, office leasing volume was 15% higher than a year ago, with JLL estimating that it has returned to approximately 89% of typical pre-pandemic levels [10] - Higher quality office spaces in Sunbelt markets continue to outperform, with significant leasing activity noted in Phoenix [10][41] Company Strategy and Development Direction - The company is redeveloping its City Center property in downtown St. Petersburg into a 49-story residential condominium and mixed-use tower, partnering with Property Markets Group [6] - The project is expected to capitalize on luxury demand and is anticipated to have significant long-term value creation potential for shareholders [9] - The company is focusing on Sunbelt markets for capital investment, where it sees the most value creation opportunities [41] Management's Comments on Operating Environment and Future Outlook - Management noted a positive trend in overall office real estate fundamentals and expects occupancy to increase as signed leases take effect [10][31] - The company anticipates a decrease in occupancy in the short term due to tenant downsizing but expects to return to guidance ranges by year-end [31][32] - Management expressed confidence in the leasing activity in Phoenix and other Sunbelt markets, indicating strong demand [41][42] Other Important Information - The company has $646 million in total debt as of March 31, with a net debt to EBITDA ratio of 6.7 times [19] - The credit facility matures in November 2025, with an option to extend to November 2026, which the company expects to exercise [20] - Two property debt maturities are scheduled for 2025, with ongoing discussions for term extensions [21] Q&A Session Summary Question: How did the new development project come about? - The project was initiated about two years ago, recognizing the strong market for development in Downtown St. Petersburg [23] Question: What is the timing for the project? - Presales are expected to commence soon, with a construction period of approximately three years following that [26] Question: Will there be any disruption to existing property during the redevelopment? - Alternative parking arrangements are being made for tenants to minimize disruption during the redevelopment [28] Question: What is the pace of occupancy this year? - The company has 143,000 square feet of leases that have yet to take occupancy, which is expected to positively impact occupancy in the coming quarters [30] Question: Will there be any vacancy at Greenwood Boulevard? - There will be a temporary dip in occupancy due to tenant downsizing, but it is expected to return to full occupancy before the end of the year [35] Question: How are the top Sunbelt markets performing? - The company is seeing strong performance in Phoenix and other Sunbelt markets, with significant leasing activity reported [41][42]

I N V E S T O R P R E S E NTATION M A Y 2 0 2 5 N Y S E: CIO FORWARD-LOOKING STATEMENTS The Terraces, Dallas Bloc 83, Raleigh Block 23, Phoenix Note: All information as of March 31, 2025 (1) Percentages based on management's estimate of aggregate gross asset value in each market 3 This presentation contains both historical and forward-looking statements. All statements, other than statements of historical fact are, or may be deemed to be, forward looking statements within the meaning of Section 27A of the S ...

Financial Data and Key Metrics Changes - Annualized revenue decreased by $93 million or 19% to $405 million compared to the previous year [8] - Interest expense increased by $17.9 million to $53.4 million, representing a 50% year-over-year increase [8] - Normalized FFO for Q1 was $4.4 million or $0.06 per share, down from $20.9 million or $0.36 per share in Q4 2024 [13] Business Line Data and Key Metrics Changes - The company executed 11 leases totaling 223,000 square feet with a weighted average lease term of 10.3 years and a 13.5% roll-up in rent [9] - Concessions and capital commitments declined by 22% quarter over quarter to $4.62 per square foot per year [9] Market Data and Key Metrics Changes - Same property occupancy was reported at 85.4% as of March 31, 2025 [5] - The market vacancy rate in Washington, D.C. exceeded 23%, worsened by federal leasing uncertainty [7] Company Strategy and Development Direction - The company is exploring options to address financial commitments while managing properties and leasing [9] - There is a focus on enhancing corporate sustainability practices and advancing initiatives that benefit tenants and communities [12] Management's Comments on Operating Environment and Future Outlook - The office sector is facing headwinds from work-from-home trends and macroeconomic uncertainties [6] - The company expects normalized FFO for Q2 to be between $0.09 and $0.11 per share, driven by higher NOI from lower seasonal operating expenses [14] Other Important Information - The company has $280 million in debt principal payments due in 2026 and limited liquidity of $73 million in cash [9][16] - Upcoming lease expirations through 2026 total 1.6 million square feet, representing $45 million or 11% of annualized rental income [11] Q&A Session Summary - No specific questions or answers were provided in the content regarding the Q&A session.

Financial Data and Key Metrics Changes - Annualized revenue decreased by $93 million or 19% to $405 million compared to the previous year [8] - Interest expense increased by $17.9 million to $53.4 million, representing a 50% year-over-year increase [8] - Normalized FFO for Q1 2025 was $4.4 million or $0.06 per share, down from $20.9 million or $0.36 per share in Q4 2024 [13] Business Line Data and Key Metrics Changes - The company executed 11 leases totaling 223,000 square feet with a weighted average lease term of 10.3 years and a 13.5% roll-up in rent [9] - Concessions and capital commitments declined by 22% quarter-over-quarter to $4.62 per square foot per year [9] - Lease expirations through 2026 total 1.6 million square feet, representing $45 million or 11% of annualized rental income [11] Market Data and Key Metrics Changes - Same property occupancy was reported at 85.4% as of March 31, 2025 [5] - The market vacancy rate in Washington, D.C., where the company has a concentration, is over 23% [7] - The U.S. Government is the largest tenant, representing 16.8% of annualized revenue [6] Company Strategy and Development Direction - The company is exploring options to address financial commitments while managing properties [9] - There is a focus on enhancing corporate sustainability practices and advancing initiatives that benefit tenants and communities [12] - The company is evaluating disposition opportunities to mitigate occupancy risk and carry costs associated with vacant properties [12] Management's Comments on Operating Environment and Future Outlook - The office sector is facing headwinds from work-from-home trends and macroeconomic uncertainties [6] - The company anticipates a decrease in same property cash basis NOI by 10% to 12% compared to Q2 2024 due to tenant vacancies and increased free rent [14] - Management is closely monitoring government efficiency measures that may impact office space requirements [10] Other Important Information - The company sold three properties totaling 249,000 square feet for $26.9 million during the quarter [12] - Total liquidity is currently limited to $73 million in cash [9] - Upcoming debt principal payments of $280 million are due in 2026 [9] Q&A Session Summary Question: What are the expectations for future leasing activity? - Management noted that leasing demand is concentrated towards trophy assets, and new leasing interest has been minimal due to the age of the properties [7] Question: How is the company addressing its financial commitments? - The company is exploring all options to manage its financial commitments while operating and leasing properties [9] Question: What is the outlook for normalized FFO in Q2 2025? - The company expects normalized FFO to be between $0.09 and $0.11 per share for Q2 2025, driven by higher NOI from lower seasonal operating expenses [13]

Portfolio Overview - Paramount's portfolio consists of Class A office properties in New York and San Francisco, totaling 13.8 million square feet across 18 assets[11] - The portfolio is 94% exposed to Trophy and Class A office rental revenues with limited retail exposure[16] - Same Store Leased occupancy is 87.4% in New York and 82.3% in San Francisco as of March 31, 2025[11] Financial Highlights - The company's estimate of Cash NOI is approximately $299 million for the full year 2025[11] - The annualized rent is $90 per square foot[14] - Proforma Liquidity is $699.3 million, including $200 million revolver availability and $499.3 million Cash & Restr Cash[74] Lease Expirations - Portfolio lease expirations show 10.4% in 2025, 13.4% in 2026, 3.2% in 2027, 4.1% in 2028, 6.8% in 2029, and 62.1% thereafter[45] - The 5-Year Average lease expiration is 575 thousand square feet, or 8.0% per annum[45] - Debt maturity schedule shows $363.2 million debt maturing in 2025, representing 10.1% of total debt[81] Financial Performance (Three Months Ended March 31, 2025) - PGRE's share of NOI is $86.788 million[98] - PGRE's share of Cash NOI is $83.677 million[98] - PGRE's share of Same Store Cash NOI decreased by 4.1% to $84.121 million[101]

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]

Core Insights - Piedmont Office (PDM) reported a revenue of $142.69 million for Q1 2025, reflecting a year-over-year decline of 1.3% and an EPS of $0.36 compared to -$0.22 a year ago, exceeding the Zacks Consensus Estimate of $141.54 million by 0.81% [1] Financial Performance - The company experienced a surprise in EPS of +2.86%, with the consensus EPS estimate being $0.35 [1] - Rental and Tenant Reimbursement Revenue from fixed payments was $111.78 million, surpassing the two-analyst average estimate of $110.34 million, but showing a year-over-year decline of 1.4% [4] - Variable payments for Rental and Tenant Reimbursement Revenue were reported at $24.29 million, slightly below the two-analyst average estimate of $24.61 million, with a year-over-year decline of 5.7% [4] - Other property-related income was $6.54 million, exceeding the average estimate of $6.15 million, marking a year-over-year increase of 23.4% [4] - Property management fee revenue was reported at $0.08 million, significantly lower than the two-analyst average estimate of $0.47 million, reflecting a year-over-year decline of 48.4% [4] - Total rental and tenant reimbursement revenue was $136.06 million, above the two-analyst average estimate of $134.95 million, with a year-over-year decline of 2.2% [4] - Net income per share applicable to common stockholders-diluted was -$0.08, matching the average estimate based on two analysts [4] Market Performance - Piedmont Office shares have returned -6% over the past month, compared to the Zacks S&P 500 composite's -4.3% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance against the broader market in the near term [3]