NYSE$PDM

Piedmont Realty Trust Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Piedmont reported a net loss for Q2 2024, but achieved its largest quarterly leasing volume in over a decade.

Piedmont Office Realty Trust reported a net loss of $9.8 million for the second quarter of 2024, compared to a net loss of $2.0 million in the same period last year. However, the company achieved its largest quarterly leasing volume in over a decade, completing over one million square feet of leasing, with a cash rental rate roll-up of greater than 15%.

  • Net loss of $9.8 million, or $0.08 per diluted share.
  • Core FFO was $0.37 per diluted share.
  • Same Store NOI increased 5.7% on a cash basis and 3.7% on an accrual basis.
  • Completed over one million square feet of leasing, the largest amount in a single quarter in over a decade.

Headline financials

Total Revenue

$143M

Previous: $143M+0.1%
EPS (adj)

$0.37

Previous: $0.45-17.8%
Capital Expenditures

-$50.9M

No prior period
Free Cash Flow

-$9.81M

Previous: -$1.99M-393.4%
Net Income

-$9.81M

Previous: -$1.99M-393.4%
Operating Income

$1.34M

Previous: -$1.72M+177.9%
Gross Profit

$27.8M

Previous: $26.9M+3.3%
Cash & Equivalents

$138M

Previous: $5.17M+2579.6%
Total Assets

$4.16B

Previous: $4.09B+1.6%
Stock-Based Comp

$2.2M

Previous: $2.16M+1.8%

Revenue & EPS history

Piedmont · Revenue · Quarterly

$143M

Q2 2024+0.1%vs Q2 2023
Beat estimate in 8 of 15 quarters(53%)
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

The Company is narrowing its previous guidance for the year ending December 31, 2024 primarily to reflect the impact of its recent $400 million bond issuance.

Tailwinds

  • Executed leasing in the range of 2-2.3 million square feet
  • Year-end leased percentage for the Company's in-service portfolio anticipated to be approximately 87.5-88.5%
  • Same Store NOI raised from flat to 2% increase to a 2-3% increase on both a cash and accrual basis for the year
  • Interest income to approximately $4 million due to temporarily investing a portion of the net proceeds from the Company's recent bond offering which it anticipates using to repay a $250 million term loan in March of 2025
  • General and administrative expense adjusted to approximately $30 million based on mid-year estimates of potential performance based compensation as a result of year-to-date leasing results

Headwinds

  • Net loss between $(63) and $(60) million
  • Interest expense of approximately $123-126 million, reflecting a full year of higher interest rates as a result of refinancing activity completed by the Company during the latter half of 2023 and in the first half of 2024.
  • No speculative acquisitions, dispositions, or refinancings are included in the above guidance.
  • Actual results could differ materially from these estimates and individual quarters may fluctuate on both a cash basis and an accrual basis
  • Timing of any future dispositions, significant lease commencements and expirations, abatement periods, repairs and maintenance expenses, capital expenditures, capital markets activities, general and administrative expenses, accrued potential performance-based compensation expense, one-time revenue or expense events, and other factors

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 2024

Historical avgQ2 2024

-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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