NYSE$PDM

Piedmont Realty Trust Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Piedmont Office Realty Trust reported its fourth quarter and annual results for 2024, showing a net loss and increased interest expense, but strong leasing activity and positive Same Store NOI growth.

Piedmont Office Realty Trust reported a net loss of $29.978 million for Q4 2024, an increase from the $28.030 million net loss in Q4 2023, primarily due to impairment charges and elevated interest expense. Despite the net loss, the company achieved its highest annual leasing volume since 2015 and saw positive Same Store NOI growth.

  • Net loss applicable to Piedmont increased to $29.978 million in Q4 2024 from $28.030 million in Q4 2023.
  • Core FFO per diluted share decreased to $0.37 in Q4 2024 from $0.41 in Q4 2023, partly due to increased interest expense.
  • The company completed approximately 433,000 square feet of leasing in Q4 2024, contributing to a total of 2.4 million square feet for the year, exceeding its original goal.
  • Same Store NOI (cash basis) increased by 0.9% in Q4 2024, marking the fourth consecutive year of positive growth.

Headline financials

Total Revenue

$143M

Previous: $170M-16.0%
EPS (adj)

$0.37

Previous: $0.41-9.8%
Same Store NOI (Cash Basis)

0.9%

No prior period
Same Store NOI (Accrual Basis)

2.5%

No prior period
Leased Percentage as of Period End

88.4%

Previous: 87.1%+1.5%
Total Leasing Square Footage

433.0K

No prior period
New Tenant Leasing Square Footage

94.0K

No prior period
Number of Lease Transactions

249

No prior period
Cash Rent Roll Up

11.5%

No prior period
Accrual Rent Roll Up

14.7%

No prior period
Capital Expenditures

-$72.1M

No prior period
Net Income

-$30M

Previous: -$28M-7.0%
Operating Income

$17K

Previous: -$1.69M+101.0%

Revenue & EPS history

Piedmont · Revenue · Quarterly

$143M

Q4 2024-16%vs Q4 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

Piedmont Office Realty Trust provided guidance for the year ending December 31, 2025, projecting Core FFO per diluted share between $1.38 and $1.44, and anticipating an increase in the year-end leased percentage to 89-90%.

Tailwinds

  • Anticipated executed leasing of approximately 1.4-1.6 million square feet for the year.
  • Expected increase in year-end leased percentage to approximately 89-90% for the in-service portfolio.
  • Same Store NOI projected to be flat to 3% increase on both cash and accrual basis.
  • Refinancing activities completed in 2024 and early 2025 mean no remaining debt with a final maturity until 2028.
  • Strong rental rate growth reflected in 2024 executed leases, with approximately 12% on a cash basis and almost 20% on an accrual basis.

Headwinds

  • Projected increase in interest expense (net of interest income) to $127-129 million, reflecting a full year of higher interest rates.
  • No speculative acquisitions, dispositions, or refinancing are included in the guidance, indicating potential for future adjustments.
  • Potential for actual results to differ materially due to timing of future dispositions, lease commencements/expirations, and other market factors.
  • General and administrative expense projected at $30-32 million.
  • Dilution due to increase in weighted average shares outstanding is expected.

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 2024

Historical avgQ4 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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