NYSE$PDM

Piedmont Realty Trust Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Piedmont reported a net loss impacted by a goodwill impairment charge and increased interest expenses, while leasing activity remained strong.

Piedmont Office Realty Trust reported a net loss of $17 million for Q3 2023, impacted by an $11 million goodwill impairment charge and increased interest expenses. Despite the loss, the company saw a $2.9 million increase in total revenues and completed approximately 302,000 square feet of leasing transactions. The leased percentage increased to 86.7% as of September 30, 2023.

  • Net loss of $17.0 million, or $0.14 per diluted share, was reported, including an $11.0 million non-cash impairment charge and a $10.1 million increase in interest expense.
  • Core FFO per diluted share was $0.43, compared to $0.50 in Q3 2022, due to increased interest expense.
  • Approximately 302,000 square feet of leasing transactions were completed, with 170,000 square feet for new tenant leasing.
  • Leased percentage increased to 86.7% from 86.2% as of June 30, 2023.

Headline financials

Total Revenue

$147M

Previous: $144M+2.0%
EPS (adj)

$0.43

Previous: $0.50-14.0%
Cash Rent Roll Up

11.7%

Previous: 33.1%-64.7%
Accrual Rent Roll Up

10.3%

Previous: 37.6%-72.6%
Capital Expenditures

$0.00

Previous: -$271M+100.0%
Free Cash Flow

-$17M

Previous: -$268M+93.6%
Net Income

-$17M

Previous: $3.33M-610.4%
Operating Income

-$9.33M

Previous: $20.2M-146.1%
Gross Profit

$28.8M

Previous: $85.1M-66.1%
Cash & Equivalents

$5.04M

Previous: $10.7M-52.7%
Total Assets

$4.07B

Previous: $4.19B-2.7%
Stock-Based Comp

$2.1M

Previous: $2.01M+4.6%

Revenue & EPS history

Piedmont · Revenue · Quarterly

$147M

Q3 2023+2%vs Q3 2022
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

Due to interest rates remaining at elevated levels longer than originally anticipated, the Company estimates that it will achieve the lower end of its previously issued guidance range for the year ending December 31, 2023.

Tailwinds

  • Delivered another quarter of solid leasing results
  • Increased overall leased percentage to approximately 86.7% as of the end of the quarter
  • Reflects double-digit rollups in both cash and accrual rental rates.
  • Addressed upcoming 2024 debt maturities
  • Bolstered balance sheet as fixed rate debt now has a weighted average debt tenure of over 5 years at an average rate of approximately 5%

Headwinds

  • Interest rates remaining at elevated levels longer than originally anticipated
  • Net income/(loss) $(19) - $(17) million
  • Core FFO applicable to common stock $216 - $223 million
  • Core FFO applicable to common stock per diluted share $1.74 - $1.80
  • Actual results could differ materially from these estimates and individual quarters may fluctuate on both a cash basis and an accrual basis due to the timing of any future dispositions, significant lease commencements and expirations, abatement periods, repairs and maintenance expenses, capital expenditures, capital markets activities, seasonal 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 Q3 2023

Historical avgQ3 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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