NYSE$PDM

Piedmont Realty Trust Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Piedmont reported mixed results with a net loss but strong leasing activity.

Piedmont Office Realty Trust reported a net loss of $28.0 million for Q4 2023, compared to a net income of $75.6 million in Q4 2022. However, the company experienced strong leasing activity, completing approximately 816,000 square feet of leasing during the quarter.

  • Net loss of $28.0 million, or $0.23 per diluted share, compared to net income of $75.6 million, or $0.61 per diluted share, for the fourth quarter of 2022.
  • Core FFO per diluted share was $0.41, compared to $0.50 for the fourth quarter of 2022.
  • Completed approximately 816,000 square feet of leasing during the fourth quarter.
  • Leased percentage as of December 31, 2023 increased to 87.1%, up from 86.7% a year earlier.

Headline financials

Total Revenue

$170M

Previous: $147M+15.8%
EPS (adj)

$0.41

Previous: $0.50-18.0%
Leased Percentage as of Period End

87.1%

No prior period
Net Income

-$28M

Previous: $75.6M-137.1%
Operating Income

-$1.69M

Previous: -$5.15M+67.2%
Gross Profit

$49.1M

Previous: $87.4M-43.9%
Stock-Based Comp

$2.06M

Previous: $2.09M-1.1%

Revenue & EPS history

Piedmont · Revenue · Quarterly

$170M

Q4 2023+15.8%vs Q4 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

Piedmont introduced guidance for the year ending December 31, 2024, with a net loss between $47 million and $41 million, and Core FFO per diluted share between $1.46 and $1.56.

Tailwinds

  • Executed leasing activity in the range of 1.5 - 2 million square feet
  • Year-end leased percentage for the Company's in-service portfolio anticipated to be approximately 87-88%, before the impacts of any acquisition or disposition activity
  • Same Store NOI flat to 2% increase on both a cash and accrual basis
  • General and administrative expense will remain relatively flat at approximately $29-30 million
  • No speculative acquisitions, dispositions, or refinancings are included in the above guidance

Headwinds

  • Net loss between $(47) and $(41) million
  • Company will experience some downtime between certain lease expirations and new lease commencements during 2024
  • Interest expense of approximately $119-121 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 early 2024
  • 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
  • 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

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 Q4 2023

Historical avgQ4 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro