NYSE$PDM

Piedmont Realty Trust Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Piedmont reported results for the quarter ended September 30, 2020.

Piedmont Office Realty Trust reported a net income of $8.9 million, or $0.07 per diluted share, for Q3 2020. Core Funds From Operations were $0.48 per diluted share. The company completed 229,000 square feet of leasing and collected approximately 99% of billed tenant receivables.

  • Net income applicable to common stockholders was $8.9 million, or $0.07 per diluted share.
  • Core Funds From Operations was $0.48 per diluted share.
  • Completed approximately 229,000 square feet of leasing, excluding a 172,000 square foot back fill lease.
  • Collected approximately 99% of billed tenant receivables for the third quarter.

Headline financials

Total Revenue

$132M

Previous: $135M-2.8%
EPS (adj)

$0.48

Previous: $0.45+6.7%
Capital Expenditures

-$397M

Previous: -$384M-3.5%
Free Cash Flow

-$388M

Previous: -$375M-3.4%
Net Income

$8.94M

Previous: $8.42M+6.2%
Operating Income

$45.1M

Previous: -$30.3M+248.7%
Gross Profit

$78.4M

Previous: $80.8M-3.0%
Cash & Equivalents

$24M

Previous: $10.3M+133.0%
Total Assets

$3.75B

Previous: $3.75B+0.0%
Stock-Based Comp

$1.44M

Previous: $2.53M-43.4%

Revenue & EPS history

Piedmont · Revenue · Quarterly

$132M

Q3 2020-2.8%vs Q3 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

Piedmont is reinstating guidance for the year ending December 31, 2020, which represents an approximately 6% increase over 2019 results.

Tailwinds

  • Overall retail NOI is estimated to be lower by approximately $2 million for the year.
  • Company has taken approximately $2.6 million in bad debt charges against rental revenue in recognition of an increase in collectibility risk.
  • Reduced operating expenses (net of tenants' share) at the Company's buildings during 2020 are anticipated to be $3 to $4 million for the year.
  • The Company anticipates $5 million lower interest expense for 2020 due to lower prevailing interest rates.
  • The Company anticipates $1 to $2 million in lower general and administrative expenses for the year.

Headwinds

  • New tenant leasing for 2020 will be less than originally expected, modestly lowering 2020 net operating income (“NOI”) by approximately $5 million.
  • Piedmont’s transient parking income is estimated to be lower by approximately $2 to $3 million for the year.
  • Overall retail NOI, which comprises approximately 1% of the Company’s total 2020 revenues, is estimated to be lower by approximately $2 million for the year.
  • The Company has recorded a $4.8 million general reserve against billed and straight-line rent tenant receivables.
  • The longer-term consequences on the economy and our tenants as a result of the COVID-19 pandemic continue to be unknown.

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 Q3 2020

Historical avgQ3 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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