Piedmont Realty TrustTM Earnings Release and Supplemental Information Index Page Page Introduction Diversification Tables
Piedmont Realty Trust, Inc. (PDM) filed an SEC Form 8-K — Results of Operations and Financial Condition. EXHIBIT 99.1 Piedmont Realty Trust TM Earnings Release and Supplemental Information Index Page Page Introduction Diversification Tables Forward-Looking Statements 3 Tenant Diversification 31 Earnings Release 4 Tenant Credit Rating & Lease Distribution 32 Company Information 9 Ind
How this was made
The 30-second read
Why it matters
The filing itself does not change valuation; investors will await the actual earnings numbers and any guidance that may be disclosed later.
Market read
Routine earnings‑release filing with no new numbers; limited immediate trading relevance.
What to watch
Potential hidden guidance within the supplemental tables that analysts may parse later.
Piedmont Realty Trust Reports Third Quarter 2026 Results; increases 2026 Core FFO outlook for the third quarter in a row as leasing spreads and Same Store NOI growth accelerated.
Core FFO per diluted share increased to $0.39 from $0.35, total revenues increased 8.7%, and cash Same Store NOI increased 7.5%. Leasing spreads were strong, but GAAP net loss widened to $(21.0) million, in-service leased percentage declined to 87.7%, and the quarter included a $20.2 million loss on early extinguishment of debt.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, three months ended September 30, 2026GAAP | $151.2M | – | 8.7% |
| Rental revenue, three months ended September 30, 2026GAAP | $119.0M | – | 7.4% |
| Tenant reimbursements, three months ended September 30, 2026GAAP | $25.21M | – | 13.1% |
| Property management fee revenue, three months ended September 30, 2026GAAP | $167K | – | 45.2% |
| Other property related income, three months ended September 30, 2026GAAP | $6.91M | – | 14.7% |
| Property operating costs, three months ended September 30, 2026GAAP | $60.03M | – | (7.4)% |
| Depreciation, three months ended September 30, 2026GAAP | $46.12M | – | (9.5)% |
| Amortization, three months ended September 30, 2026GAAP | $14.04M | – | 7.5% |
| General and administrative expense, three months ended September 30, 2026GAAP | $9.06M | – | (19.1)% |
| Interest expense, three months ended September 30, 2026GAAP | −$32.03M | – | (0.2)% |
| Loss on early extinguishment of debt, three months ended September 30, 2026GAAP | −$20.24M | – | (100.0)% |
| Gain on sale of real estate assets, three months ended September 30, 2026GAAP | $8.88M | – | 100.0% |
| Net loss applicable to Piedmont, three months ended September 30, 2026GAAP | −$21.02M | – | (56.2)% |
| Net loss per share applicable to common stockholders, basic and diluted, three months ended September 30, 2026GAAP | $(0.17) | – | – |
| NAREIT Funds From Operations applicable to common stock, three months ended September 30, 2026non-GAAP | $29.91M | – | – |
| NAREIT Funds From Operations per share, diluted, three months ended September 30, 2026non-GAAP | $0.23 | – | – |
| Core Funds From Operations applicable to common stock, three months ended September 30, 2026non-GAAP | $50.14M | – | – |
| Core Funds From Operations per share, diluted, three months ended September 30, 2026non-GAAP | $0.39 | – | – |
| Adjusted Funds From Operations applicable to common stock, three months ended September 30, 2026non-GAAP | $29.94M | – | – |
| Core EBITDA, three months ended September 30, 2026non-GAAP | $82.53M | – | – |
| Same Store NOI, cash basis, three months ended September 30, 2026non-GAAP | $80.71M | – | 7.5% |
| Same Store NOI, accrual basis, three months ended September 30, 2026non-GAAP | $88.95M | – | 6.9% |
| Total revenues, nine months ended September 30, 2026GAAP | $438.7M | – | 3.9% |
| Net loss applicable to Piedmont, nine months ended September 30, 2026GAAP | −$45.04M | – | (11.6)% |
| Net loss per share applicable to common stockholders, basic and diluted, nine months ended September 30, 2026GAAP | $(0.36) | – | – |
| Core Funds From Operations applicable to common stock, nine months ended September 30, 2026non-GAAP | $144.0M | – | – |
| Core Funds From Operations per share, diluted, nine months ended September 30, 2026non-GAAP | $1.13 | – | – |
| Adjusted Funds From Operations applicable to common stock, nine months ended September 30, 2026non-GAAP | $84.77M | – | – |
| Same Store NOI, cash basis, nine months ended September 30, 2026non-GAAP | $240.7M | – | 9.2% |
| Same Store NOI, accrual basis, nine months ended September 30, 2026non-GAAP | $260.7M | – | 3.8% |
| In-service leased percentage as of September 30, 2026other | 87.7% | – | – |
| In-service commenced leased percentage as of September 30, 2026other | 85.2% | – | – |
| In-service economic leased percentage as of September 30, 2026other | 80.8% | – | – |
| Total leasing square feet, three months ended September 30, 2026other | 406 (in 000s) | – | – |
| Cash rent roll up, three months ended September 30, 2026other | 26.2% | – | – |
| Accrual rent roll up, three months ended September 30, 2026other | 34.6% | – | – |
| Net effective rent per square foot after capex and opex, three months ended September 30, 2026other | $29.31 | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
year ending December 31, 2026 outlook
- NoteNet loss of $(51) million to $(50) million
- NoteDepreciation of $181 million to $182 million
- NoteAmortization of $55 million to $56 million
- NoteGain on sale of $(9) million to $(9) million
- NoteNAREIT FFO applicable to common stock of $176 million to $179 million
- NoteLoss on early extinguishment of debt of $20 million to $20 million
- NoteCore FFO applicable to common stock of $196 million to $199 million
- NoteNAREIT FFO applicable to common stock per diluted share of $1.39 to $1.41
- NoteCore FFO applicable to common stock per diluted share of $1.55 to $1.57
- NoteExecuted leasing of approximately 1.7 to 2.0 million square feet
- NoteIn-service portfolio year-end leased percentage of approximately 87.5% to 88.5%
- NoteOut-of-service portfolio year-end leased percentage of approximately 85-90%
- NoteSame Store NOI increase of 7.5% to 8.5% on a cash basis
- NoteSame Store NOI increase of 5% to 6% on an accrual basis
- NoteInterest expense, net of interest income, of approximately $125-$126 million
- NoteGeneral and administrative expense of approximately $31-$33 million
- NoteWeighted average shares outstanding of approximately 126-127 million
Capital returns
- Approximately $50 million of net proceeds from the issuance of $230 million in aggregate principal amount of 2.875% exchangeable senior notes was used to repurchase approximately 5.4 million shares of common stock at an average price of $9.20 per share.
- The Company issued approximately 4.1 million shares of common stock under its at-the-market equity program at an average price of $9.72 per share.
What drove it
- Rental revenue increased 7.4% to $118,956 (in thousands), while tenant reimbursements increased 13.1% to $25,208 (in thousands).
- Cash Same Store NOI increased 7.5% as rental rates increased and the commencement or burn off of abatements on new leases outweighed expiring leases.
- Core FFO per diluted share increased to $0.39 from $0.35, attributed to rental rate growth and new leases commencing during the twelve months ended September 30, 2026.
- The Company executed approximately 406,000 square feet of leasing, including 194,000 square feet of new-tenant leasing.
- Leases for spaces vacant one year or less generated 26.2% cash rent roll-up and 34.6% accrual rent roll-up.
- The Company acquired 4075 Wilson Boulevard for a net purchase price of approximately $52.0 million. The approximately 186,000 square foot property was approximately 83% leased with 5.5 years of weighted-average lease term.
- The Company sold the Royal Lane land parcel for a gross sales price of $12.0 million and recognized an $8,878 (in thousands) gain on sale of real estate assets.
Concerns
- GAAP net loss applicable to Piedmont widened to $(21,022) (in thousands) from $(13,462) (in thousands), including a $(20,236) (in thousands) loss on early extinguishment of debt.
- In-service leased percentage declined to 87.7% from 88.9% as of June 30, 2026 and 89.2% as of September 30, 2025.
- In-service economic leased percentage was 80.8%, below the 87.7% in-service leased percentage.
- The Company had approximately 0.7 million square feet of executed leases for vacant space yet to commence and approximately 1.2 million square feet of executed leases under rental abatement.
- Enclave Place is under contract to be sold for $81.8 million, subject to customary closing conditions.
- The New York City lease at 60 Broad Street is in holdover status following the tenant's June 4, 2026 expiration date.
What to watch
- Conversion of approximately 0.7 million square feet of uncommenced leases representing $29.3 million in future annual rent.
- Burn-off of abatements on approximately 1.2 million square feet representing $32.0 million in future annual cash rent.
- Progress on more than 700,000 square feet of leases either executed or in the legal stage during the fourth quarter of 2026.
- Closing of the anticipated Enclave Place disposition during the fourth quarter of 2026 and intended repayment of the $600 million line of credit.
- Year-end in-service leased percentage against the outlook of approximately 87.5% to 88.5%.
- Stabilization of Meridian, expected to return to service in the fourth quarter of 2026, and 9320 Excelsior, expected to return to service in the first quarter of 2027.
Balance sheet and cash flow
- Cash and cash equivalents were $3,903 (in thousands) as of September 30, 2026, compared with $731 (in thousands) as of December 31, 2025.
- Total debt was $2,340,841 (in thousands) as of September 30, 2026, compared with $2,224,712 (in thousands) as of December 31, 2025.
- Total principal amount of debt outstanding was $2,368,023 (in thousands), with a weighted average interest rate of 4.78% and weighted average maturity of 52.0 months.
- Weighted average cost of debt was 4.78% as of September 30, 2026, compared with 5.58% as of December 31, 2025.
- The Company had approximately $448 million of capacity available on its $600 million revolving line of credit as of September 30, 2026.
- No final debt maturity requirements are due until October 2028.
- Net principal amount of debt to total gross assets less cash and cash equivalents was 40.9%, compared with 40.2% as of December 31, 2025.
- Average net debt to Core EBITDA was 7.1 x, compared with 7.2 x as of December 31, 2025.
- Operating cash flow and free cash flow were not reported in the provided filing text.
Analysis
Piedmont reported improved property-level and recurring earnings performance in the third quarter. Total revenues increased 8.7% to $151,236 (in thousands), driven by a 7.4% increase in rental revenue and a 13.1% increase in tenant reimbursements. Cash Same Store NOI increased 7.5% to $80,709 (in thousands), while accrual Same Store NOI increased 6.9% to $88,947 (in thousands). Management attributed the growth to higher rental rates and the commencement or burn-off of abatements on new leases outweighing expiring leases.
Leasing economics remained the principal operating strength. The Company completed 406,000 square feet of leasing, including 194,000 square feet with new tenants. For leases on space vacant one year or less, cash rent roll-up was 26.2% and accrual rent roll-up was 34.6%. Net effective rent after capex and opex was $29.31, compared with $25.56 in the prior quarter and $21.26 in the prior-year quarter. Core FFO increased to $50,144 (in thousands), or $0.39 per diluted share, from $43,485 (in thousands), or $0.35 per diluted share, in the prior-year quarter.
The GAAP result remained negative because the Company incurred a $(20,236) (in thousands) loss on early extinguishment of debt. Net loss applicable to Piedmont was $(21,022) (in thousands), or $(0.17) per diluted share, compared with $(13,462) (in thousands), or $(0.11) per diluted share, a year earlier. The Company also recorded an $8,878 (in thousands) gain on the sale of the Royal Lane land parcel. Excluding the debt extinguishment charge in Core FFO, the quarter showed improved recurring results.
Occupancy requires attention despite strong leasing spreads. In-service leased percentage declined to 87.7% from 88.9% in the prior quarter and 89.2% in the prior-year quarter, reflecting net expirations, leasing of previously vacant space, and the acquisition of 83% leased 4075 Wilson Boulevard. In-service economic leased percentage was 80.8%. The Company has approximately 0.7 million square feet of uncommenced vacant-space leases representing $29.3 million in future annual rent and approximately 1.2 million square feet under abatement representing $32.0 million in future annual cash rent, providing identified sources of future occupancy and cash-rent growth.
Capital activity reduced the weighted average cost of debt to 4.78% from 5.58% at year-end 2025. Piedmont issued $230 million of 2.875% exchangeable senior notes and redeemed its outstanding 9.25% unsecured senior notes due 2028, extending final debt maturities until October 2028. It also repurchased approximately 5.4 million shares at an average price of $9.20 per share and issued approximately 4.1 million shares through its at-the-market program at an average price of $9.72 per share. The Company increased and narrowed its annual Core FFO outlook to $1.55 to $1.57 per diluted share, while its NAREIT FFO outlook was reduced to $1.39 to $1.41 per diluted share because of the debt extinguishment loss and gain on sale.
Management, verbatim
Piedmont had a phenomenal third quarter. Leasing demand remained strong, allowing us to continue to push rental rates and net effective rents to all-time highs with cash and accrual leasing spreads of 26% and 35%, respectively. Same Store NOI on a cash basis grew approximately 8% during the quarter as free rent related to recently executed leases continues to burn off.
Brent Smith, President and Chief Executive Officer
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so no comparison of actual results against prior guidance is available.
- Gross margin was not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Dividend declaration, dividend per share, and dividend payment information were not reported.
- Income tax expense and tax rate were not reported.
- Segment revenue was not reported because the filing did not present operating segments.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Piedmont Realty Trust filed an 8‑K to provide its quarterly earnings release and supplemental information, a standard regulatory requirement for REITs.
Ticker impact
SEC Form 8‑K filing announcing Piedmont Realty Trust's earnings release and supplemental information.
likely neutral as the market already expects the filing and no fresh data is disclosed
Without disclosed results or guidance, traders have little actionable information; the filing merely confirms the upcoming earnings release.
Market effects
None beyond the REIT sector; no new data to shift sector outlook.
No immediate regional effect.
Minimal; the filing is a routine regulatory disclosure.
Counterpoint
If the market anticipates weak results, the filing could be a catalyst for a short‑cover rally.
Key entities
- companyPiedmont Realty Trust, Inc.
US‑listed REIT (ticker PDM) that filed an earnings release 8‑K.
