NYSE$PDM

Piedmont Realty Trust Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Reported a strong second quarter, highlighted by the sale of 1901 Market Street and a 14% increase in Core Funds From Operations.

Piedmont Office Realty Trust reported net income applicable to common stockholders of $192.4 million, or $1.52 per diluted share. The sale of 1901 Market Street for approximately $360 million significantly contributed to the quarter's results, resulting in a $191.4 million gain. Core Funds From Operations increased by 14% to $0.49 per diluted share.

  • Net income applicable to common stockholders was $192.4 million, or $1.52 per diluted share.
  • Core Funds From Operations increased by 14%, reporting $0.49 per diluted share.
  • Completed the disposition of 1901 Market Street for approximately $360 million, recognizing a $191.4 million gain.
  • Collected 99% of billed tenant receivables during the second quarter.

Headline financials

Total Revenue

$135M

Previous: $131M+3.0%
EPS (adj)

$0.49

Previous: $0.43+14.0%
Capital Expenditures

-$397M

Previous: -$127M-212.7%
Free Cash Flow

-$204M

Previous: -$119M-72.1%
Net Income

$192M

Previous: $8.15M+2260.2%
Operating Income

$46.3M

Previous: -$31.3M+247.9%
Gross Profit

$81.5M

Previous: $78.3M+4.1%
Cash & Equivalents

$36.5M

Previous: $7.75M+370.7%
Total Assets

$3.77B

Previous: $3.53B+6.9%
Stock-Based Comp

$1.65M

Previous: $6M-72.5%

Revenue & EPS history

Piedmont · Revenue · Quarterly

$135M

Q2 2020+3%vs Q2 2019
Beat estimate in 12 of 16 quarters(75%)
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

Due to the uncertainty of the COVID-19 pandemic, Piedmont is not providing guidance for 2020 at this time. They anticipate that their overall leased percentage and expected 2020 financial performance will not be severely impacted by the pandemic.

Tailwinds

  • Strong, diversified tenant base, a majority of which is investment grade quality.
  • Collected 99% of billed tenant receivables during the second quarter of 2020.
  • Prudent balance sheet with excellent liquidity, including approximately $30 million in cash.
  • Full availability under its $500 million line of credit at June 30, 2020.
  • No debt maturities until late 2021.

Headwinds

  • New tenant leasing activity slowed during the second quarter and is expected to continue throughout the third quarter, potentially lowering 2020 NOI by approximately $5 million.
  • Transient parking income is estimated to be lower by approximately $2 million for the year.
  • Overall retail NOI is estimated to be lower by approximately $2 million for the year.
  • Took an approximate charge of $1.8 million against rental revenue in recognition of an increase in collectibility risk.
  • Established an additional approximately $5 million general reserve for potential future losses.

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 Q2 2020

Historical avgQ2 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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