NYSE$PDM

Piedmont Realty Trust Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Piedmont reported a net loss of $11.5 million and Core FFO of $0.36 per diluted share, with leasing activity reaching 461,000 square feet.

Piedmont Office Realty Trust reported a net loss of $11.5 million for Q3 2024, with Core FFO at $0.36 per diluted share. The company completed 461,000 square feet of leasing, bringing the portfolio to 88.8% leased. The company sold 750 West John Carpenter Freeway, in Dallas, TX for $23 million.

  • Net loss was $11.5 million, or $0.09 per diluted share.
  • Core FFO was $0.36 per diluted share.
  • Completed 461,000 square feet of leasing, 44% pertaining to new tenant leasing.
  • Leased percentage for the in-service portfolio reached 88.8%.

Headline financials

Total Revenue

$139M

Previous: $147M-5.2%
EPS

-$0.09

Previous: $0.43-120.9%
Cash Rent Roll Up

4.0%

Previous: 11.7%-65.8%
Accrual Rent Roll Up

8.5%

Previous: 10.3%-17.5%
Capital Expenditures

-$43M

Previous: $0.00
Free Cash Flow

-$11.5M

Previous: -$17M+32.2%
Net Income

-$11.5M

Previous: -$17M+32.2%
Operating Income

$1.84M

Previous: -$9.33M+119.7%
Gross Profit

$25.7M

Previous: $28.8M-10.8%
Cash & Equivalents

$134M

Previous: $5.04M+2549.2%
Total Assets

$4.14B

Previous: $4.07B+1.6%
Stock-Based Comp

$2.19M

Previous: $2.1M+3.8%

Revenue & EPS history

Piedmont · Revenue · Quarterly

$139M

Q3 2024-5.2%vs Q3 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.

Tailwinds

  • Increased projection of executed leasing for the year to approximately 2.4-2.6 million square feet.
  • Increase in the anticipated year-end leased percentage for the Company's in-service portfolio of approximately 88-89%, exclusive of any speculative acquisition or disposition activity.
  • Same Store NOI increase of 2-3% on both a cash and accrual basis for the year.
  • Interest income of approximately $4-5 million due to temporarily investing a portion of the net proceeds from the Company's second quarter bond offering prior to using the proceeds to repay a $250 million term loan that matures in March of 2025.
  • General and administrative expense of approximately $29-31 million.

Headwinds

  • Net loss between $(62) and $(60) million.
  • Interest expense of approximately $123-124 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 the first half of 2024.
  • No speculative acquisitions, dispositions, or refinancing 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 due to the 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.
  • Changes in tax laws impacting REITs and real estate in general, as well as our ability to continue to qualify as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”), or other tax law changes which may adversely affect our stockholders.

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 2024

Historical avgQ3 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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