NYSE$PDM

Piedmont Realty Trust Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Piedmont reported results inline with expectations, completing the largest acquisition and placing another large asset under contract to sell.

Piedmont Office Realty Trust reported a net income of $8.7 million, or $0.07 per diluted share, for the quarter ended March 31, 2020. The company achieved Core Funds From Operations (Core FFO) of $0.47 per diluted share. They completed approximately 417,000 square feet of leasing and also completed the acquisition of the Dallas Galleria Office Towers.

  • Net income applicable to common stockholders of $8.7 million, or $0.07 per diluted share.
  • Core Funds From Operations (Core FFO) of $0.47 per diluted share.
  • Completed approximately 417,000 square feet of leasing, including approximately 120,000 square feet of new tenant leasing.
  • Completed the acquisition of the Dallas Galleria Office Towers for approximately $396 million.

Headline financials

Total Revenue

$137M

Previous: $133M+3.2%
EPS (adj)

$0.47

Previous: $0.45+4.4%
Same Store NOI (Cash Basis)

2.2%

Previous: 64693000.0%-100.0%
Same Store NOI (Accrual Basis)

4.2%

Previous: 70777000.0%-100.0%
Capital Expenditures

-$397M

Previous: -$14.7M-2593.2%
Free Cash Flow

-$388M

Previous: $35.5M-1194.2%
Net Income

$8.71M

Previous: $50.2M-82.7%
Operating Income

$51.7M

Previous: -$24.3M+313.1%
Gross Profit

$84M

Previous: $81.1M+3.5%
Cash & Equivalents

$7.92M

Previous: $4.63M+71.2%
Total Assets

$3.92B

Previous: $3.43B+14.2%
Stock-Based Comp

$3.9M

Previous: $3.84M+1.6%

Revenue & EPS history

Piedmont · Revenue · Quarterly

$137M

Q1 2020+3.2%vs Q1 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Piedmont · $147M total across 3 segments · Q3 2023

  • Rental and Tenant Reimbursement Revenue
    $142M
  • Other Property Related Income
    $5.06M
  • Property Management Fee Revenue
    $396K

Forward guidance

Piedmont withdrew its guidance for 2020 due to the uncertainty of the COVID-19 pandemic. However, Piedmont anticipates that its overall leased percentage and expected 2020 financial performance will not be severely impacted by the pandemic.

Tailwinds

  • Piedmont has a strong, diversified tenant base, a majority of which is investment grade quality.
  • The Company has a prudent balance sheet with excellent liquidity, including approximately $350 million available on its line of credit at March 31, 2020 and no debt maturities until late 2021.
  • Approximately 96% of April’s rents have been collected and only a limited number of the remaining tenants that have yet to pay April’s rents are requesting deferral of second quarter rents.
  • The Company has amended lease terms for tenants which will defer approximately $1 million of rents per month for an average of three months, or in total about one-half of a percent of annualized revenues.
  • The duration of the effects of the pandemic are largely confined to the second quarter of the current calendar year.

Headwinds

  • New tenant leasing activity during April has slowed and the Company believes this trend will continue throughout the quarter, likely pushing all “new tenant” leasing goals out at least a quarter, which will modestly lower net operating income (“NOI”) for 2020 by approximately $1.5 million, and lower our originally anticipated year end leased percentage.
  • Much of Piedmont’s transient parking income for the second quarter will not occur and will reduce NOI by approximately $1 million.
  • With respect to retail tenant income, which is about 1% of the Company’s total 2020 revenues, retail NOI is estimated to decline by approximately $1.5 million.
  • The impact of the pandemic on subsequent months’ rent collections cannot be reasonably estimated at this time.
  • The identified impacts of the COVID-19 pandemic on net operating income during 2020 equate to approximately $0.04 to $0.05 per share of Core FFO reduction.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.7%

Avg return

Earnings day

-0.4%

Avg return

5 days after

-1.0%

Avg return

30 days after

42%

27 / 65 earnings

Positive

+6.3%

Q3 2019

Best reaction

-15.4%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.4%+1.1%-0.4%
Q4 2025-7.8%-3.3%-21.8%
Q3 2025+0.6%-5.5%+2.8%
Q1 2025-15.4%-2.4%+6.6%
Q4 2024-8.2%-6.9%-10.3%
Q3 2024-3.5%-5.7%-12.6%
Q2 2024-0.3%-7.2%+11.8%
Q1 2024-2.9%-0.4%+3.6%
Q4 2023+3.1%+7.3%-0.9%
Q3 2023+2.8%+20.3%+23.1%
Q2 2023-7.8%-10.4%-18.5%
Q1 2023-1.8%+1.8%-4.3%
Q4 2022-2.8%+0.9%-20.7%
Q3 2022-4.2%-2.2%-4.0%
Q2 2022+1.7%+2.0%-9.4%
Q1 2022-0.4%-5.1%-11.9%
Q4 2021-4.8%-4.3%-4.1%
Q3 2021-1.3%-0.5%-2.8%
Q2 2021+1.7%-1.5%-4.9%
Q1 2021+1.8%+2.1%+0.9%
Q4 2020+3.6%+3.8%+11.2%
Q3 2020-1.6%+5.9%+40.4%
Q2 2020+1.5%-0.7%-2.2%
Q1 2020+1.1%-5.4%-2.8%
Q4 2019+2.7%+1.6%-2.4%
Q3 2019+6.3%+5.2%+4.7%
Q2 2019-1.3%-5.7%-4.6%
Q1 2019-0.3%+1.5%-2.4%
Q4 2018+0.9%+4.6%+2.7%
Q3 2018-1.1%-1.9%-0.2%
Q2 2018+0.2%+1.5%+0.3%
Q1 2018+4.5%+4.0%+7.3%
Q4 2017-4.9%-2.0%-2.4%
Q3 2017+2.8%+2.8%+3.6%
Q2 2017-1.0%-2.3%-3.8%
Q1 2017-4.1%-1.8%-3.4%
Q4 2016+1.1%+2.0%-1.5%
Q3 2016-4.2%-6.5%-4.8%
Q2 2016-1.5%-1.7%+0.2%
Q1 2016+1.3%
Q4 2015-0.5%
Q3 2015-0.8%
Q2 2015+0.0%
Q1 2015-2.9%
Q4 2014-3.7%
Q3 2014+0.4%
Q2 2014-0.9%
Q1 2014+3.1%
Q4 2013+1.1%
Q3 2013-1.6%
Q2 2013-1.9%
Q1 2013+0.9%
Q4 2012-1.1%
Q3 2012+3.5%
Q2 2012+0.9%
Q1 2012+0.3%
Q4 2011-1.5%
Q4 2009-1.5%
Q3 2011-1.2%
Q3 2010-1.2%
Q2 2011+2.5%
Q2 2010+2.5%
Q1 2010-1.1%
Q4 2010-1.1%
Q1 2011-1.1%

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