NYSE$PDM

Piedmont Realty Trust Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Piedmont reported a net loss but achieved significant new tenant leasing.

Piedmont Office Realty Trust reported a net loss of $1.4 million for Q1 2023, compared to a net income of $60.0 million in Q1 2022. Core FFO per diluted share decreased to $0.46 from $0.51 year-over-year, primarily due to increased interest expense. However, the company saw strong leasing activity, particularly in new tenant leasing, and affirms its year-end leased percentage guidance.

  • Net loss applicable to Piedmont was $1.4 million, compared to net income of $60.0 million in the same quarter last year.
  • Core FFO per diluted share decreased to $0.46 from $0.51 year-over-year due to higher interest expenses.
  • Completed approximately 544,000 square feet of leasing transactions, with 270,000 square feet for new tenants.
  • Affirmed year-end leased percentage guidance between 87-88%.

Headline financials

Total Revenue

$142M

Previous: $136M+4.6%
EPS (adj)

$0.46

Previous: $0.51-9.8%
Cash Rent Roll Up

5.7%

No prior period
Accrual Rent Roll Up

9.9%

No prior period
Free Cash Flow

-$1.37M

Previous: $60M-102.3%
Net Income

-$1.37M

Previous: $60M-102.3%
Operating Income

-$2.97M

Previous: $71.8M-104.1%
Gross Profit

$26.7M

Previous: $82.5M-67.6%
Cash & Equivalents

$171M

Previous: $7.21M+2265.7%
Total Assets

$4.24B

Previous: $3.7B+14.5%
Stock-Based Comp

$1.76M

Previous: $2.81M-37.4%

Revenue & EPS history

Piedmont · Revenue · Quarterly

$142M

Q1 2023+4.6%vs Q1 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Piedmont · $142M total across 3 segments · Q1 2023

  • Rental and Tenant Reimbursement Revenue
    $137M
  • Other Property Related Income
    $5.03M
  • Property Management Fee Revenue
    $507K

Forward guidance

Piedmont affirms its previously issued guidance for the year ending December 31, 2023, with Core FFO per diluted share expected to be between $1.80 and $1.90 and year-end leased percentage anticipated to be between 87-88%.

Tailwinds

  • Executed leasing activity for 2023 is estimated to be in the range of 1.6 to 2.0 million square feet.
  • Year-end leased percentage anticipated to be between 87-88%.
  • Net income/(loss) is projected to be between $(1) million and $1 million.
  • Depreciation is expected to be between $144 million and $151 million.
  • Amortization is projected to be between $80 million and $84 million.

Headwinds

  • Actual results could differ materially from these estimates.
  • Individual quarters may fluctuate on both a cash basis and an accrual basis.
  • Fluctuations may occur due to the timing of any future dispositions.
  • Significant lease commencements and expirations may cause fluctuations.
  • Abatement periods, repairs and maintenance expenses, and capital expenditures may cause fluctuations.

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 2023

Historical avgQ1 2023

-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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