EX-99.2 3 pdm93021ex992q32021supplem.htm EX-99.2 Document

EXHIBIT 99.2



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Piedmont Office Realty Trust, Inc.
Quarterly Supplemental Information
Index
PagePage
IntroductionOther Investments
Corporate DataOther Investments Detail
Investor InformationSupporting Information
Earnings ReleaseDefinitions
FinancialsResearch Coverage
Balance SheetsNon-GAAP Reconciliations
Income StatementsProperty Detail - In-Service Portfolio
Key Performance IndicatorsRisks, Uncertainties and Limitations
Funds From Operations / Adjusted Funds From Operations
Same Store Analysis
Capitalization Analysis
Debt Summary
Debt Detail
Debt Covenant & Ratio Analysis
Operational & Portfolio Information - Office Property Investments
Tenant Diversification
Tenant Credit Rating & Lease Distribution Information
Leased Percentage Information
Rental Rate Roll Up / Roll Down Analysis
Lease Expiration Schedule
Quarterly Lease Expirations
Annual Lease Expirations
Capital Expenditures
Contractual Tenant Improvements & Leasing Commissions
Geographic Diversification
Geographic Diversification by Location Type
Industry Diversification
Property Investment Activity
Notice to Readers:
Please refer to page 42 for a discussion of important risks related to the business of Piedmont Office Realty Trust, Inc., as well as an investment in its securities, including risks that could cause actual results and events to differ materially from results and events referred to in the forward-looking information. Considering these risks, uncertainties, assumptions, and limitations, the forward-looking statements about leasing, financial operations, leasing prospects, acquisitions, dispositions, etc. contained in this quarterly supplemental information report may differ from actual results.
Certain prior period amounts have been reclassified to conform to the current period financial statement presentation. In addition, many of the schedules herein contain rounding to the nearest thousands or millions and, therefore, the schedules may not total due to this rounding convention.
To supplement the presentation of the Company’s financial results prepared in accordance with U.S. generally accepted accounting principles (GAAP), this report contains certain financial measures that are not prepared in accordance with GAAP, including FFO, Core FFO, AFFO, Same Store NOI, Property NOI, EBITDAre and Core EBITDA. Definitions and reconciliations of these non-GAAP measures to their most comparable GAAP metrics are included beginning on page 36. Each of the non-GAAP measures included in this report has limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of the Company’s results calculated in accordance with GAAP. In addition, because not all companies use identical calculations, the Company’s presentation of non-GAAP measures in this report may not be comparable to similarly titled measures disclosed by other companies, including other REITs. The Company may also change the calculation of any of the non-GAAP measures included in this report from time to time in light of its then existing operations.




Piedmont Office Realty Trust, Inc.
Corporate Data

Piedmont Office Realty Trust, Inc. (also referred to herein as "Piedmont" or the "Company") (NYSE: PDM) is an owner, manager, developer, redeveloper and operator of high-quality, Class A office properties in select submarkets located primarily within seven major Eastern U.S. office markets, with over half of its revenue generated from the Sunbelt. Its geographically-diversified, approximately $5 billion portfolio is comprised of approximately 17 million square feet (as of the date of release of this report). The Company is a fully-integrated, self-managed real estate investment trust ("REIT") with local management offices in each of its markets and is investment-grade rated by Standard & Poor’s and Moody’s. The Company was designated an Energy Star Partner of the Year for 2021, and it is the only office REIT headquartered in the Southeast to receive that designation. At the end of the third quarter of 2021, approximately 76% of the Company's portfolio was Energy Star certified and approximately 43% was LEED certified. Piedmont is headquartered in Atlanta, GA.

This data supplements the information provided in our reports filed with the Securities and Exchange Commission and should be reviewed in conjunction with such filings.
As ofAs of
September 30, 2021December 31, 2020
Number of consolidated in-service office properties (1)
5454
Rentable square footage (in thousands) (1)
16,42816,428
Percent leased (2)
85.9 %86.8 %
Capitalization (in thousands):
Total debt - principal amount outstanding (excludes premiums, discounts, and deferred financing costs)$1,678,000$1,632,610
Equity market capitalization (3)
$2,163,684$2,009,914
Total market capitalization (3)
$3,841,684$3,642,524
Total debt / Total market capitalization (3)
43.7 %44.8 %
Average net debt to Core EBITDA5.5 x5.8 x
Total debt / Total gross assets34.4 %34.4 %
Common stock data:
High closing price during quarter$19.40$16.95
Low closing price during quarter$16.79$11.42
Closing price of common stock at period end$17.43$16.23
Weighted average fully diluted shares outstanding during quarter (in thousands)124,627125,544
Shares of common stock issued and outstanding at period end (in thousands)124,136123,839
Annual regular dividend per share (4)
$0.84$0.84
Rating / Outlook:
Standard & Poor'sBBB / StableBBB / Stable
Moody'sBaa2 / StableBaa2 / Stable
Employees130137
(1)As of September 30, 2021, our consolidated office portfolio consisted of 54 properties (exclusive of one 127,000 square foot property that was out of service for redevelopment, 222 South Orange Avenue in Orlando, FL).
(2)
Calculated as square footage associated with commenced leases plus square footage associated with executed but uncommenced leases for vacant spaces at our in-service properties, divided by total rentable in-service square footage, all as of the relevant date, expressed as a percentage. Please refer to page 24 for additional analyses regarding Piedmont's leased percentage.
(3)Reflects common stock closing price, shares outstanding and outstanding debt as of the end of the reporting period, as appropriate.
(4)Total of the regular dividends per share for which record dates occurred over the prior four quarters.

3


Piedmont Office Realty Trust, Inc.
Investor Information
Corporate
5565 Glenridge Connector, Suite 450
Atlanta, Georgia 30342
770.418.8800
www.piedmontreit.com
Executive Management
C. Brent SmithRobert E. BowersGeorge Wells
Chief Executive Officer, PresidentChief Financial and Administrative OfficerChief Operating Officer and
and Directorand Executive Vice PresidentExecutive Vice President
Edward H. Guilbert, IIIChristopher A. KollmeLaura P. MoonJoseph H. Pangburn
Executive Vice President, Finance,Executive Vice President,Chief Accounting Officer andExecutive Vice President,
Assistant Secretary and TreasurerStrategySenior Vice PresidentSouthwest Region
Investor Relations Contact
Thomas R. PrescottAlex ValenteRobert K. Wiberg
Executive Vice President,Executive Vice President,Executive Vice President,
Midwest Region and Co-Head ofSoutheast RegionNortheast Region and Co-Head of
DevelopmentDevelopment
Board of Directors
Frank C. McDowellDale H. TaysomKelly H. BarrettWesley E. Cantrell
Director, Chair of the Board of Directors,Director, Vice Chair of the Director, Chair of the Audit Committee, Director and Member of the Governance
Chair of the Compensation Committee, andBoard of Directors, and Member of theand Member of the Governance Committeeand Compensation Committees
Member of the Governance CommitteeAudit and Capital Committees
Glenn G. CohenBarbara B. LangC. Brent SmithJeffery L. Swope
Director and Member of the Audit and CapitalDirector, Chair of the Governance Committee, Chief Executive Officer, PresidentDirector, Chair of the Capital
Committeesand Member of the Compensationand DirectorCommittee, and Member of the
CommitteeCompensation Committee
Transfer AgentCorporate CounselInstitutional Analyst ContactInvestor Relations
ComputershareKing & SpaldingPhone: 770.418.8592Phone: 866.354.3485
P.O. Box 301701180 Peachtree Street, NEresearch.analysts@piedmontreit.cominvestor.services@piedmontreit.com
College Station, TX 77842-3170Atlanta, GA 30309www.piedmontreit.com
Phone: 866.354.3485Phone: 404.572.4600

4


Piedmont Office Realty Trust, Inc.
Earnings Release
Piedmont Office Realty Trust Reports Third Quarter 2021 Results and Raises Guidance

ATLANTA, October 27, 2021--Piedmont Office Realty Trust, Inc. ("Piedmont" or the "Company") (NYSE:PDM), an owner of Class A office properties located primarily in seven major Eastern U.S. markets with a majority of its revenue being generated from the Sunbelt, today announced its results for the quarter ended September 30, 2021.

Highlights for the Quarter Ended September 30, 2021:

Financial Results:
The Company reported net income applicable to Piedmont of $11.3 million, or $0.09 per diluted share, for the quarter ended September 30, 2021, as compared to $8.9 million, or $0.07 per diluted share, for the quarter ended September 30, 2020.
Piedmont reported Core Funds From Operations ("Core FFO") of $62.0 million, or $0.50 per diluted share, for the quarter ended September 30, 2021, as compared to $60.2 million, or $0.48 per diluted share, for the quarter ended September 30, 2020.
Piedmont reported an approximately 12% and 5% increase in Same Store Net Operating Income ("Same Store NOI") on a cash and accrual basis, respectively, for the quarter ended September 30, 2021 as compared to the quarter ended September 30, 2020.
The Company has raised and narrowed its 2021 financial guidance to a range of $1.95 to $1.98 per diluted share of Core FFO, as compared to its previously announced range of $1.90 to $1.96 per diluted share of Core FFO.
Leasing:
The Company completed approximately 509,000 square feet of leasing across all of its major markets, including approximately 221,000 square feet of new tenant leasing.
Piedmont reported an approximately 11% and 16% roll up in cash and accrual basis rents, respectively, based on leases executed during the quarter ended September 30, 2021 for space vacant one year or less.
The Company's reported average lease size was approximately 15,000 square feet and the portfolio was approximately 86% leased as of September 30, 2021.
Capital Markets (Including Subsequent Event):
As previously announced, the Company is under binding contract to sell 225 & 235 Presidential Way in Woburn, MA for $129.0 million, or $293 per square foot, to an investment-grade buyer. The sale is expected to close in early 2022, subject to customary closing conditions.
On October 22, 2021, Piedmont acquired 999 Peachtree Street, a 622,000 square foot, approximately 77% leased, LEED Platinum, 28-story, office building located in Atlanta, GA for $223.9 million, or $360 per square foot.
After the completion of both of the above transactions, approximately 55% of the Company's Annualized Lease Revenue will be generated from the Sunbelt.
Balance Sheet:
The Company issued $300 million in aggregate principal amount of 2.75% Senior Notes due 2032 and used the proceeds to repay, without penalty, its Amended and Restated $300 million Unsecured 2011 Term Loan that was scheduled to mature in November of 2021.

The Company's average net debt-to-Core EBITDA ratio as of September 30, 2021 was 5.5 x.
The Company's Debt-to-Gross Assets ratio was 34.4% as of September 30, 2021.
As of September 30, 2021, the Company had no secured debt and approximately $422 million of available capacity on its $500 million line of credit.
5


ESG and Operations:
Piedmont's entire approximately 17 million square foot portfolio has been submitted to the International WELL Building Institute ("IWBI") for WELL Health-Safety Rating.
All three of the Dallas Galleria Office Towers obtained Building Owners and Managers Association ("BOMA") 360 Designations.
Three buildings won regional The Outstanding Building of the Year ("TOBY") awards.
Piedmont awarded scholarships to two students, one at Howard University in Washington, D.C. and the other at Morehouse College in Atlanta, GA.
Piedmont was recognized by the Make-a-Wish Georgia chapter for outstanding community involvement through its 2020 annual Make-a-Wish grant.

Commenting on third quarter results, Brent Smith, President and Chief Executive Officer, said, "In addition to reporting strong financial metrics for the quarter, we also made progress on a number of strategic objectives including a sizeable debt refinancing, major capital recycling transaction, and numerous ESG initiatives. Perhaps most encouraging to our business was that new tenant leasing returned to pre-pandemic levels, demonstrating both optimism around the office sector’s recovery and the resiliency of our portfolio." Smith added, "Furthermore, we are extremely excited to announce our acquisition and vision for 999 Peachtree Street, an iconic building located in the heart of midtown Atlanta. This LEED Platinum building provides Piedmont with a foothold in one of the most vibrant, active submarkets in the country at an attractive basis and with immediate scale. We look forward to revitalizing the asset and driving income growth by providing a unique, differentiated product with outdoor amenities that are unmatched in the submarket today."

Results for the Quarter ended September 30, 2021

Piedmont recognized net income applicable to Piedmont for the three months ended September 30, 2021 of $11.3 million, or $0.09 per diluted share, compared to $8.9 million, or $0.07 per diluted share, for the three months ended September 30, 2020, with the $0.02 per share increase primarily attributable to rising rental rates, decreased operating expenses, particularly related to our landlord's portion of real estate taxes, as well as the expiration of operating expense recovery abatements on certain leases. These improvements were partially offset by a 0.9% reduction in our overall leased percentage on a year-to-date basis as a result of reduced new leasing activity in 2020 and the first half of 2021 due to the COVID-19 pandemic.
FFO and Core FFO, which remove the impact of gains and losses on sales of real estate assets, as well as depreciation and amortization, were both $62.0 million, or $0.50 per diluted share, for the three months ended September 30, 2021 as compared to $60.2 million, or $0.48 per diluted share, for the three months ended September 30, 2020. The $0.02 per share increase in both metrics was primarily attributable to the same factors noted in net income above.
Total revenues were $131.1 million for the three months ended September 30, 2021, compared to $131.7 million for the three months ended September 30, 2020, with the loss of revenue related to 2020 disposition activity generally being offset by higher rental rates and reimbursement and other income at certain properties in 2021.
Property operating costs were $51.8 million for the three months ended September 30, 2021, as compared with $53.3 million for the three months ended September 30, 2020, with the decrease primarily related to lower real estate taxes at certain properties, as well as the impact of disposition activity that occurred during 2020.
General and administrative expense was $7.0 million for the third quarter of 2021, as compared to $5.5 million for the same period in 2020, with the three months ended September 30, 2020 primarily reflecting reduced accruals during 2020 for potential performance based compensation tied to operating results, particularly leasing, which was impacted by the COVID-19 pandemic.

Leasing Update

During the three months ended September 30, 2021, Piedmont completed approximately 509,000 square feet of leasing, which was widely dispersed throughout the portfolio and included approximately 221,000 square feet of new tenant leasing. The weighted average lease term for the approximately 50 leases executed during the third quarter was 6.4 years with the largest lease completed during the third quarter being a 10-year renewal and expansion totaling approximately 155,000 square feet at 5&15 Wayside in Burlington, MA. No other individual lease executed during the quarter was as large as 25,000 square feet.
Leases executed during the third quarter of 2021 for recently occupied space reflected a 10.5% and 16.1% roll up in cash and accrual rents, respectively. As of September 30, 2021, the Company's reported leased percentage and weighted average remaining lease term were approximately 86% and 6.1 years, respectively.
Same Store NOI increased 11.6% and 5.0% on a cash and accrual basis, respectively, for the quarter ended September 30, 2021 as compared to the quarter ended September 30, 2020, with the increase in both metrics primarily attributable to rising rental rates and decreased operating expenses, particularly property taxes, as well as the expiration of abatements at certain properties, partially offset by lower overall occupancy (0.9% year-to-date) due to slow leasing in 2020 and the first half of 2021 due to the COVID-19 pandemic. As of September 30, 2021, the Company had approximately 770,000 square feet of executed leases for vacant space yet to commence or under rental abatement.

6


Financing and Transactional Activity

During the three months ended September 30, 2021, the Company issued $300 million in aggregate principal amount of 2.75% Senior Notes due 2032 and used the proceeds to repay its Amended and Restated $300 million Unsecured 2011 Term Loan that was scheduled to mature in November of 2021.

As previously announced, the Company is under binding contract to sell 225 and 235 Presidential Way in Woburn, MA for $129.0 million, or $293 per square foot, to an investment-grade buyer. The sale is expected to close in early 2022, subject to customary closing conditions.

Subsequent to quarter end, on October 22, 2021, Piedmont acquired 999 Peachtree Street, a 622,000 square foot, approximately 77% leased, LEED-Platinum, 28-story, office building located in Atlanta, GA for $223.9 million, or $360 psf. Located at the corner of Peachtree and 10th Streets in the heart of Midtown, the property offers spectacular views of the Midtown skyline and nearby Piedmont Park. Superior accessibility to the interstate, MARTA (commuter rail system) and the Midtown/ Beltline bike path, along with premier amenities and close proximity to Georgia Tech and more than 30,000 residents within a 1-mile radius, make 999 Peachtree Street a compelling location for prospective tenants. The acquisition marks Piedmont's entry into Midtown Atlanta, one of the most vibrant, active submarkets in the country. Piedmont plans an exciting redevelopment project to revitalize the asset and deliver a premiere tenant experience.

ESG and Other Operational Initiatives

In addition to Piedmont's Atlanta Galleria assets that have already received a WELL Health-Safety rating, the remainder of Piedmont's entire approximately 17 million square foot portfolio has been submitted to the IWBI for WELL Health-Safety Rating. The WELL Health-Safety Rating is an evidence-based, third-party verified rating for all new and existing building and facility types focused on operational policies, maintenance protocols, occupant engagement and emergency plans to prioritize the health and safety of their staff, visitors and stakeholders during the COVID-19 crisis and for the long-term.

All three of the Company's Dallas Galleria Office Towers obtained BOMA 360 Designations during the three months ended September 30, 2021. Consequently, approximately 90% of the Company's portfolio is now designated as BOMA 360. In addition, three buildings - 5 Wall Street in Boston, MA and Norman Pointe I and US Bancorp Center, both in Minneapolis, MN - won regional TOBY awards.

During the three months ended September 30, 2021, Piedmont awarded scholarships to two students, one at Howard University in Washington, D.C. and the other at Morehouse College in Atlanta, GA. The scholarships were awarded pursuant to the Piedmont Office Realty Trust Scholarship Program, whereby Piedmont has partnered with two Historically Black Colleges and Universities to provide need-based, scholastic support to selected rising sophomores interested in pursuing a career related to the real estate industry along with the opportunity to join Piedmont in a summer internship position.

Fourth Quarter 2021 Dividend Declaration

On October 27, 2021, the board of directors of Piedmont declared a dividend for the fourth quarter of 2021 in the amount of $0.21 per share on its common stock to stockholders of record as of the close of business on November 26, 2021, payable on January 4, 2022.

7



Guidance for 2021

The Company has raised and narrowed its 2021 financial guidance for calendar year 2021 to a range of $1.95 to $1.98 per diluted share of Core FFO, as compared to its previously announced range of $1.90 to $1.96 per diluted share of Core FFO. This guidance is based upon management's assumptions, estimates and expectations based on information available to management as of the date of this release. These estimates reflect year-to-date operating and leasing results, as well as management's view of current market conditions, and incorporate certain economic and operational assumptions and projections, including those related to the pace and strength of the ongoing economic recovery from the COVID-19 pandemic. They also include the effect of the acquisition of 999 Peachtree Street, but no other acquisition or disposition activity that may be completed during the year. Actual results could differ materially from these estimates based on a variety of factors as discussed on page 42.

(in millions, except per share data)LowHigh
Net Income$40$41
Add:
Depreciation119 121 
Amortization84 85 
NAREIT FFO and Core FFO applicable to common stock$243$247
NAREIT FFO and Core FFO per diluted share$1.95$1.98

Note that individual quarters may fluctuate on both a cash basis and an accrual basis due to the timing of 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 expenses, and one-time revenue or expense events.


8


Piedmont Office Realty Trust, Inc.
Consolidated Balance Sheets
Unaudited (in thousands)
September 30, 2021June 30, 2021March 31, 2021December 31, 2020September 30, 2020
Assets:
Real estate, at cost:
Land assets$476,717 $476,717 $476,717 $476,716 $497,478 
Buildings and improvements3,259,369 3,203,286 3,170,152 3,123,042 3,215,255 
Buildings and improvements, accumulated depreciation(829,832)(804,400)(776,577)(751,521)(787,602)
Intangible lease asset148,945 155,002 155,634 158,444 161,870 
Intangible lease asset, accumulated amortization(80,072)(79,149)(72,475)(67,850)(63,353)
Construction in progress48,226 67,033 47,498 56,749 56,393 
Real estate assets held for sale, gross78,803 77,917 76,797 76,475 76,475 
Real estate assets held for sale, accumulated depreciation & amortization(16,699)(16,699)(16,487)(16,021)(15,558)
Total real estate assets3,085,457 3,079,707 3,061,259 3,056,034 3,140,958 
Cash and cash equivalents8,189 8,122 10,689 7,331 23,958 
Tenant receivables, net of allowance for doubtful accounts8,678 6,530 4,545 8,448 11,301 
Straight line rent receivable159,871 156,912 153,727 148,797 152,171 
Notes receivable118,500 118,500 118,500 118,500 — 
Escrow deposits and restricted cash6,093 1,578 1,741 1,883 1,781 
Prepaid expenses and other assets24,915 29,469 22,647 23,277 28,074 
Goodwill98,918 98,918 98,918 98,918 98,918 
Deferred lease costs, gross437,020 441,488 439,342 444,211 460,773 
Deferred lease costs, accumulated amortization(195,255)(191,045)(181,499)(171,817)(169,307)
Other assets held for sale, gross9,258 9,128 8,941 5,030 5,123 
Other assets held for sale, accumulated amortization(996)(996)(936)(802)(668)
Total assets$3,760,648 $3,758,311 $3,737,874 $3,739,810 $3,753,082 
Liabilities:
Unsecured debt, net of discount$1,665,101 $1,666,570 $1,633,819 $1,594,068 $1,588,411 
Secured debt— — 27,628 27,936 28,424 
Accounts payable, accrued expenses, and accrued capital expenditures127,675 111,562 92,183 137,680 120,763 
Deferred income73,614 70,594 56,638 36,891 36,613 
Intangible lease liabilities, less accumulated amortization26,924 29,761 32,607 35,440 38,324 
Interest rate swaps6,715 7,316 7,654 9,834 10,618 
Other liabilities held for sale— — — — — 
Total liabilities$1,900,029 $1,885,803 $1,850,529 $1,841,849 $1,823,153 
Stockholders' equity:
Common stock1,241 1,241 1,240 1,238 1,260 
Additional paid in capital3,700,208 3,698,656 3,697,801 3,693,996 3,692,634 
Cumulative distributions in excess of earnings(1,822,441)(1,807,679)(1,791,558)(1,774,856)(1,740,670)
Other comprehensive loss(20,036)(21,368)(21,813)(24,100)(24,993)
Piedmont stockholders' equity1,858,972 1,870,850 1,885,670 1,896,278 1,928,231 
Non-controlling interest1,647 1,658 1,675 1,683 1,698 
Total stockholders' equity1,860,619 1,872,508 1,887,345 1,897,961 1,929,929 
Total liabilities, redeemable common stock and stockholders' equity$3,760,648 $3,758,311 $3,737,874 $3,739,810 $3,753,082 
Common stock outstanding at end of period124,136 124,132 124,029 123,839 126,029 

9


Piedmont Office Realty Trust, Inc.
Consolidated Statements of Income
Unaudited (in thousands except for per share data)
Three Months Ended
9/30/20216/30/20213/31/202112/31/20209/30/2020
Revenues:
Rental income (1)
$105,592 $105,209 $105,170 $104,560 $108,071 
Tenant reimbursements (1)
21,835 21,758 20,742 23,712 20,209 
Property management fee revenue626 536 758 721 751 
Other property related income3,018 2,715 2,587 2,536 2,662 
131,071 130,218 129,257 131,529 131,693 
Expenses:
Property operating costs51,767 51,658 51,424 55,302 53,293 
Depreciation30,562 29,998 28,103 27,236 28,255 
Amortization20,373 20,693 22,912 22,324 22,990 
General and administrative6,955 8,211 7,251 7,415 5,469 
109,657 110,560 109,690 112,277 110,007 
Other income / (expense):
Interest expense(12,450)(12,345)(12,580)(13,048)(12,725)
Other income / (expense)2,337 2,631 2,356 1,770 319 
Gain / (loss) on extinguishment of debt— — — — — 
Gain / (loss) on sale of real estate (2)
— — — 14,634 (340)
Net income11,301 9,944 9,343 22,608 8,940 
Less: Net (income) / loss applicable to noncontrolling interest
Net income applicable to Piedmont$11,306 $9,947 $9,344 $22,609 $8,943 
Weighted average common shares outstanding - diluted124,627 124,704 124,450 125,544 126,385 
Net income per share available to common stockholders - diluted$0.09 $0.08 $0.08 $0.18 $0.07 
Common stock outstanding at end of period124,136 124,132 124,029 123,839 126,029 





(1)The presentation method used for this line is not in conformance with GAAP. To be in conformance with the current GAAP standard, the Company would need to combine amounts presented on the rental income line with amounts presented on the tenant reimbursements line and present that aggregated figure on one line entitled "rental and tenant reimbursement revenue." The amounts presented on this line were determined based upon the Company's interpretation of the rental charges and billing method provisions in each of the Company's lease documents.
(2)The gain on sale of real estate reflected in the fourth quarter of 2020 was primarily related to the net sale of a three property portfolio in northern New Jersey.
10


Piedmont Office Realty Trust, Inc.
Consolidated Statements of Income
Unaudited (in thousands except for per share data)
Three Months EndedNine Months Ended
9/30/20219/30/2020Change ($)Change (%)9/30/20219/30/2020Change ($)Change (%)
Revenues:
Rental income (1)
$105,592 $108,071 $(2,479)(2.3)%$315,971 $329,281 $(13,310)(4.0)%
Tenant reimbursements (1)
21,835 20,209 1,626 8.0 %64,335 62,400 1,935 3.1 %
Property management fee revenue626 751 (125)(16.6)%1,920 2,146 (226)(10.5)%
Other property related income3,018 2,662 356 13.4 %8,320 9,668 (1,348)(13.9)%
131,071 131,693 (622)(0.5)%390,546 403,495 (12,949)(3.2)%
Expenses:
Property operating costs51,767 53,293 1,526 2.9 %154,849 159,631 4,782 3.0 %
Depreciation30,562 28,255 (2,307)(8.2)%88,663 83,339 (5,324)(6.4)%
Amortization20,373 22,990 2,617 11.4 %63,978 70,970 6,992 9.9 %
General and administrative6,955 5,469 (1,486)(27.2)%22,417 20,049 (2,368)(11.8)%
109,657 110,007 350 0.3 %329,907 333,989 4,082 1.2 %
Other income / (expense):
Interest expense(12,450)(12,725)275 2.2 %(37,375)(41,942)4,567 10.9 %
Other income / (expense)2,337 319 2,018 632.6 %7,324 817 6,507 796.5 %
Gain / (loss) on extinguishment of debt— — — — (9,336)9,336 100.0 %
Gain / (loss) on sale of real estate (2)
— (340)340 100.0 %— 191,032 (191,032)(100.0)%
Net income11,301 8,940 2,361 26.4 %30,588 210,077 (179,489)(85.4)%
Less: Net (income) / loss applicable to noncontrolling interest66.7 %350.0 %
Net income applicable to Piedmont$11,306 $8,943 $2,363 26.4 %$30,597 $210,079 $(179,482)(85.4)%
Weighted average common shares outstanding - diluted124,627 126,385 124,472 126,302 
Net income per share available to common stockholders - diluted$0.09 $0.07 $0.25 $1.66 
Common stock outstanding at end of period124,136 126,029 124,136 126,029 





(1)The presentation method used for this line is not in conformance with GAAP. To be in conformance with the current GAAP standard, the Company would need to combine amounts presented on the rental income line with amounts presented on the tenant reimbursements line and present that aggregated figure on one line entitled "rental and tenant reimbursement revenue." The amounts presented on this line were determined based upon the Company's interpretation of the rental charges and billing method provisions in each of the Company's lease documents.
(2)The gain on sale of real estate for the nine months ended September 30, 2020 was primarily related to the sale of 1901 Market Street in Philadelphia, PA.

11


Piedmont Office Realty Trust, Inc.
Key Performance Indicators
Unaudited (in thousands except for per share data)
This section of our supplemental report includes non-GAAP financial measures, including, but not limited to, Earnings Before Interest, Taxes, Depreciation, and Amortization for real estate (EBITDAre), Core Earnings Before Interest, Taxes, Depreciation, and Amortization (Core EBITDA), Funds from Operations (FFO), Core Funds from Operations (Core FFO), and Adjusted Funds from Operations (AFFO). Definitions of these non-GAAP measures are provided on page 36 and reconciliations are provided beginning on page 38.
Three Months Ended
Selected Operating Data9/30/20216/30/20213/31/202112/31/20209/30/2020
Percent leased (1)
85.9 %85.9 %86.0 %86.8 %86.9 %
Percent leased - economic (1) (2)
81.6 %82.6 %80.6 %82.0 %80.7 %
Total revenues$131,071$130,218$129,257$131,529$131,693
Net income attributable to Piedmont$11,306$9,947$9,344$22,609$8,943
Core EBITDA$74,686$72,980$72,938$70,582$73,250
Core FFO applicable to common stock$62,004$60,353$60,056$57,229$60,219
Core FFO per share - diluted$0.50$0.48$0.48$0.46$0.48
AFFO applicable to common stock$41,213$41,661$37,861$36,291$37,606
Gross regular dividends (3)
$26,068$26,068$26,046$26,145$26,466
Regular dividends per share (3)
$0.21$0.21$0.21$0.21$0.21
Selected Balance Sheet Data
Total real estate assets, net$3,085,457$3,079,707$3,061,259$3,056,034$3,140,958
Total assets$3,760,648$3,758,311$3,737,874$3,739,810$3,753,082
Total liabilities$1,900,029$1,885,803$1,850,529$1,841,849$1,823,153
Ratios & Information for Debt Holders
Core EBITDA margin (4)
57.0 %56.0 %56.4 %53.7 %55.6 %
Fixed charge coverage ratio (5)
5.5 x5.4 x5.4 x5.1 x5.5 x
Average net debt to Core EBITDA (6)
5.5 x5.7 x5.6 x5.8 x5.5 x
Total gross real estate assets$4,012,060$3,979,955$3,926,798$3,891,426$4,007,471
Net debt (7)
$1,663,718$1,666,300$1,658,995$1,623,396$1,602,237
(1)
Please refer to page 24 for additional leased percentage information.
(2)Economic leased percentage excludes the square footage associated with executed but not commenced leases for currently vacant spaces and the square footage associated with tenants receiving rental abatements (after proportional adjustments for tenants receiving only partial rental abatements). Due to variations in rental abatement structures, there will be variability to the economic leased percentage over time as abatements commence and expire.
(3)Dividends are reflected in the quarter in which the record date occurred.
(4)Core EBITDA margin is calculated as Core EBITDA divided by total revenues.
(5)The fixed charge coverage ratio is calculated as Core EBITDA divided by the sum of interest expense, principal amortization, capitalized interest and preferred dividends. The Company had no preferred dividends during any of the periods presented; the Company had capitalized interest of $1,009,904 for the quarter ended September 30, 2021, $875,804 for the quarter ended June 30, 2021, $812,649 for the quarter ended March 31, 2021, $368,965 for the quarter ended December 31, 2020, and $236,290 for the quarter ended September 30, 2020; the Company had no principal amortization for the quarter ended September 30, 2021, as its last remaining amortizing loan was repaid during the second quarter of 2021; the Company had principal amortization of $187,087 for the quarter ended June 30, 2021, $185,368 for the quarter ended March 31, 2021, $365,644 for the quarter ended December 31, 2020, and $269,838 for the quarter ended September 30, 2020.
(6)For the purposes of this calculation, we annualize the period's Core EBITDA and use the average daily balance of debt outstanding during the period, less cash and cash equivalents and escrow deposits and restricted cash as of the end of the period.
(7)Net debt is calculated as the total principal amount of debt outstanding minus cash and cash equivalents and escrow deposits and restricted cash as of the end of the period.

12


Piedmont Office Realty Trust, Inc.
Funds From Operations, Core Funds From Operations and Adjusted Funds From Operations
Unaudited (in thousands except for per share data)
Three Months EndedNine Months Ended
9/30/20219/30/20209/30/20219/30/2020
GAAP net income applicable to common stock$11,306 $8,943 $30,597 $210,079 
Depreciation (1) (2)
30,336 27,960 87,873 82,384 
Amortization (1)
20,362 22,976 63,943 70,930 
Loss / (gain) on sale of properties
— 340 — (191,032)
NAREIT funds from operations and core funds from operations applicable to common stock62,004 60,219 182,413 172,361 
Adjustments:
Loss / (gain) on extinguishment of debt— — — 9,336 
Core funds from operations applicable to common stock62,004 60,219 182,413 181,697 
Adjustments:
Amortization of debt issuance costs, fair market adjustments on notes payable, and discount on senior notes849 931 2,076 2,180 
Depreciation of non real estate assets216 286 762 930 
Straight-line effects of lease revenue (1)
(2,122)(6,315)(8,627)(20,378)
Stock-based compensation adjustments1,637 1,336 5,152 4,281 
Amortization of lease-related intangibles (1)
(2,731)(3,240)(8,192)(9,517)
Non-incremental capital expenditures (3)
(18,640)(15,611)(52,849)(58,062)
Adjusted funds from operations applicable to common stock$41,213 $37,606 $120,735 $101,131 
Weighted average common shares outstanding - diluted124,627 126,385 124,472 126,302 
Funds from operations per share (diluted)$0.50 $0.48 $1.47 $1.36 
Core funds from operations per share (diluted)$0.50 $0.48 $1.47 $1.44 
Common stock outstanding at end of period124,136 126,029 124,136 126,029 




(1)Includes our proportionate share of amounts attributable to consolidated properties.
(2)Excludes depreciation of non real estate assets.
(3)
Non-incremental capital expenditures are defined on page 36.

13


Piedmont Office Realty Trust, Inc.
Same Store Net Operating Income (Cash Basis)
Unaudited (in thousands)
Three Months EndedNine Months Ended
9/30/20219/30/20209/30/20219/30/2020
Net income attributable to Piedmont$11,306 $8,943 $30,597 $210,079 
Net income / (loss) attributable to noncontrolling interest(5)(3)(9)(2)
Interest expense
12,450 12,725 37,375 41,942 
Depreciation (1)
30,552 28,247 88,635 83,315 
Amortization (1)
20,362 22,976 63,943 70,930 
Depreciation and amortization attributable to noncontrolling interests21 22 63 64 
Loss / (gain) on sale of properties
— 340 — (191,032)
EBITDAre
74,686 73,250 220,604 215,296 
(Gain) / loss on extinguishment of debt— — — 9,336 
Core EBITDA (2)
74,686 73,250 220,604 224,632 
General & administrative expenses
6,955 5,469 22,417 20,049 
Non-cash general reserve for uncollectible accounts (3)
— (33)412 4,831 
Management fee revenue (4)
(309)(422)(946)(1,098)
Other (income) / expense (1) (5)
(2,121)(104)(6,423)(170)
Straight-line effects of lease revenue (1)
(2,122)(6,315)(8,627)(20,378)
Straight-line effects of lease revenue attributable to noncontrolling interests(5)(12)
Amortization of lease-related intangibles (1)
(2,731)(3,240)(8,192)(9,517)
Property net operating income (cash basis)74,359 68,600 219,247 218,337 
Deduct net operating (income) / loss from:
Acquisitions (6)
(8,012)(6,041)(24,214)(15,320)
Dispositions (7)
(359)(3,338)(204)(20,225)
Other investments (8)
254 150 580 388 
Same store net operating income (cash basis)$66,242 $59,371 $195,409 $183,180 
Change period over period11.6 %N/A6.7 %N/A
(1)Includes our proportionate share of amounts attributable to consolidated properties.
(2)The Company has historically recognized approximately $2 to $3 million of termination income on an annual basis. Given the size of its asset base and the number of tenants with which it conducts business, Piedmont considers termination income of that magnitude to be a normal part of its operations and a recurring part of its revenue stream; however, the recognition of termination income is typically variable between quarters and throughout any given year and is dependent upon when during the year the Company receives termination notices from tenants. During the three months ended September 30, 2021, Piedmont recognized $0.1 million of termination income, as compared with $0.4 million during the same quarterly period in 2020. During the nine months ended September 30, 2021, Piedmont recognized $2.8 million in termination income, as compared with $1.5 million during the same period in 2020.
(3)As a result of COVID-19 and as a precautionary measure, during the second quarter of 2020, the Company established a general reserve for potential future losses on customer accounts. The general reserve is non-cash in nature and, therefore, any changes in the reserve are removed from the calculation of cash basis same store net operating income. No such reserves were made in any periods prior to the second quarter of 2020.
(4)Presented net of related operating expenses incurred to earn the revenue; therefore, the information presented on this line will not tie to the data presented on the income statements.
(5)Figures presented on this line may not tie back to the relevant sources as some activity is attributable to property operations and is, therefore, presented in property net operating income.
(6)Acquisitions include One Galleria Tower, Two Galleria Tower and Three Galleria Tower in Dallas, TX, purchased on February 12, 2020.
(7)Dispositions include 1901 Market Street in Philadelphia, PA, sold on June 25, 2020, and the New Jersey property portfolio sold on October 28, 2020 (consisting of the Company's final remaining assets in the state, 200 and 400 Bridgewater Crossing in Bridgewater, NJ, and 600 Corporate Drive in Lebanon, NJ).
(8)
Other investments include active out-of-service redevelopment and development projects, land, and recently completed redevelopment and development projects. Additional information on our land holdings can be found on page 35. The operating results from 222 South Orange Avenue in Orlando, FL, are included in this line item.
14


Piedmont Office Realty Trust, Inc.
Same Store Net Operating Income (Accrual Basis)
Unaudited (in thousands)
Three Months EndedNine Months Ended
9/30/20219/30/20209/30/20219/30/2020
Net income attributable to Piedmont$11,306 $8,943 $30,597 $210,079 
Net income / (loss) attributable to noncontrolling interest(5)(3)(9)(2)
Interest expense
12,450 12,725 37,375 41,942 
Depreciation (1)
30,552 28,247 88,635 83,315 
Amortization (1)
20,362 22,976 63,943 70,930 
Depreciation and amortization attributable to noncontrolling interests21 22 63 64 
Loss / (gain) on sale of properties
— 340 — (191,032)
EBITDAre
74,686 73,250 220,604 215,296 
(Gain) / loss on extinguishment of debt— — — 9,336 
Core EBITDA (2)
74,686 73,250 220,604 224,632 
General & administrative expenses
6,955 5,469 22,417 20,049 
Management fee revenue (3)
(309)(422)(946)(1,098)
Other (income) / expense (1) (4)
(2,121)(104)(6,423)(170)
Property net operating income (accrual basis)79,211 78,193 235,652 243,413 
Deduct net operating (income) / loss from:
Acquisitions (5)
(9,621)(8,505)(29,244)(21,246)
Dispositions (6)
(359)(3,191)(204)(21,330)
Other investments (7)
311 (286)748 551 
Same store net operating income (accrual basis)$69,542 $66,211 $206,952 $201,388 
Change period over period5.0 %N/A2.8 %N/A
(1)Includes our proportionate share of amounts attributable to consolidated properties.
(2)The Company has historically recognized approximately $2 to $3 million of termination income on an annual basis. Given the size of its asset base and the number of tenants with which it conducts business, Piedmont considers termination income of that magnitude to be a normal part of its operations and a recurring part of its revenue stream; however, the recognition of termination income is typically variable between quarters and throughout any given year and is dependent upon when during the year the Company receives termination notices from tenants. During the three months ended September 30, 2021, Piedmont recognized $0.1 million of termination income, as compared with $0.4 million during the same quarterly period in 2020. During the nine months ended September 30, 2021, Piedmont recognized $2.8 million in termination income, as compared with $1.5 million during the same period in 2020.
(3)Presented net of related operating expenses incurred to earn the revenue; therefore, the information presented on this line will not tie to the data presented on the income statements.
(4)Figures presented on this line may not tie back to the relevant sources as some activity is attributable to property operations and is, therefore, presented in property net operating income.
(5)Acquisitions include One Galleria Tower, Two Galleria Tower and Three Galleria Tower in Dallas, TX, purchased on February 12, 2020.
(6)Dispositions include 1901 Market Street in Philadelphia, PA, sold on June 25, 2020, and the New Jersey property portfolio sold on October 28, 2020 (consisting of the Company's final remaining assets in the state, 200 and 400 Bridgewater Crossing in Bridgewater, NJ, and 600 Corporate Drive in Lebanon, NJ).
(7)
Other investments include active out-of-service redevelopment and development projects, land, and recently completed redevelopment and development projects. Additional information on our land holdings can be found on page 35. The operating results from 222 South Orange Avenue in Orlando, FL, are included in this line item.




15


Piedmont Office Realty Trust, Inc.
Same Store Net Operating Income (Financial Components)
Unaudited (in thousands)

Three Months EndedNine Months Ended
9/30/20219/30/2020Change ($)Change (%)9/30/20219/30/2020Change ($)Change (%)
Revenue
Cash rental income (1)
$92,043 $86,487 $5,556 6.4 %$272,632 $256,212 $16,420 6.4 %
Tenant reimbursements (2)
18,638 16,511 2,127 12.9 %53,990 53,641 349 0.7 %
Straight line effects of lease revenue (3)
1,784 5,389 (3,605)(66.9)%7,566 18,049 (10,483)(58.1)%
Amortization of lease-related intangibles1,516 1,418 98 6.9 %4,389 4,990 (601)(12.0)%
Total rents
113,981 109,805 4,176 3.8 %338,577 332,892 5,685 1.7 %
Other property related income (4)
2,820 2,569 251 9.8 %7,887 9,626 (1,739)(18.1)%
Total revenue116,801 112,374 4,427 3.9 %346,464 342,518 3,946 1.2 %
Property operating expense47,475 46,378 (1,097)(2.4)%140,159 141,776 1,617 1.1 %
Property other income / (expense) 216 215 1.0 0.5 %647 646 1.0 0.2 %
Same store net operating income (accrual)$69,542 $66,211 $3,331 5.0 %$206,952 $201,388 $5,564 2.8 %
Less:
Straight line effects of lease revenue(1,784)(5,389)3,605 66.9 %(7,566)(18,049)10,483 58.1 %
Amortization of lease-related intangibles(1,516)(1,418)(98)(6.9)%(4,389)(4,990)601 12.0 %
Non-cash general reserve for uncollectible accounts— (33)33 100.0 %412 4,831 (4,419)(91.5)%
Same store net operating income (cash)$66,242 $59,371 $6,871 11.6 %$195,409 $183,180 $12,229 6.7 %
(1)The increase in cash rental income for the three months and the nine months ended September 30, 2021 as compared to the same periods in 2020 was primarily due to the burn off of significant rental abatements at several properties in the portfolio, including Enclave Place in Houston, TX.
(2)The increase in tenant reimbursements for the three months ended September 30, 2021 as compared to the same period in 2020 was primarily the result of the expiration of an operating expense reimbursement abatement at Enclave Place in Houston, TX.
(3)The decrease in straight line effects of lease revenue for the three months and the nine months ended September 30, 2021 as compared to the same periods in 2020 was primarily due to the expiration of the rental abatement periods of several large new and renewal leases in the portfolio.
(4)The decrease in other property related income for the nine months ended September 30, 2021 as compared to the same period in 2020 was primarily the result of pandemic-related decreased transient parking activity across the portfolio.

16


Piedmont Office Realty Trust, Inc.
Capitalization Analysis
Unaudited (in thousands except for per share data)
As ofAs of
September 30, 2021December 31, 2020
Market Capitalization
Common stock price$17.43$16.23
Total shares outstanding124,136123,839
Equity market capitalization (1)
$2,163,684$2,009,914
Total debt - principal amount outstanding (excludes premiums, discounts, and deferred financing costs)$1,678,000$1,632,610
Total market capitalization (1)
$3,841,684$3,642,524
Total debt / Total market capitalization (1)
43.7 %44.8 %
Ratios & Information for Debt Holders
Total gross assets (2)
$4,883,502$4,747,821
Total debt / Total gross assets (2)
34.4 %34.4 %
Average net debt to Core EBITDA (3)
5.5 x5.8 x






(1)Reflects common stock closing price, shares outstanding, and outstanding debt as of the end of the reporting period, as appropriate.
(2)Total gross assets is defined as total assets with the add-back of accumulated depreciation and accumulated amortization related to real estate assets and accumulated amortization related to deferred lease costs.
(3)For the purposes of this calculation, we annualize the Core EBITDA for the quarter and use the average daily balance of debt outstanding during the quarter, less cash and cash equivalents and escrow deposits and restricted cash as of the end of the quarter.

17


Piedmont Office Realty Trust, Inc.
Debt Summary
As of September 30, 2021
Unaudited ($ in thousands)
Floating Rate & Fixed Rate Debt
chart1.gif
Debt (1)
Principal Amount
Outstanding
Weighted Average Stated
Interest Rate (2)
Weighted Average
Maturity
Floating Rate$228,000
(3)
1.02%35.8 months
Fixed Rate1,450,000 3.51%64.0 months
Total$1,678,0003.18%60.2 months

Unsecured & Secured Debt
chart2.gif
Debt (1)
Principal Amount
Outstanding
Weighted Average Stated
Interest Rate (2)
Weighted Average
Maturity
Unsecured$1,678,0003.18%60.2 months
Secured— —%N/A
Total$1,678,0003.18%60.2 months

Debt Maturities (4)
Maturity Year
Unsecured Debt - Principal
Amount Outstanding (1)
 Weighted Average
Stated Interest
Rate (2)
 Percentage of Total
chart3.gif
2021— N/A—%
2022— N/A—%
2023428,000 2.96%25.5%
2024400,000 4.45%23.8%
2025 250,000 2.04%14.9%
2026 +600,000 2.95%35.8%
Total$1,678,0003.18%100.0%
(1)All of Piedmont's outstanding debt as of September 30, 2021, was unsecured, interest-only debt.
(2)Weighted average stated interest rate is calculated based upon the principal amounts outstanding.
(3)The amount of floating rate debt is comprised of the $78 million outstanding balance as of September 30, 2021 on the $500 million unsecured revolving credit facility and $150 million in principal amount of the $250 million unsecured term loan that closed in 2018 that remained unhedged as of September 30, 2021. The $250 million unsecured term loan that closed in 2018 has a stated variable rate. However, Piedmont entered into $100 million in notional amount of seven-year interest rate swap agreements resulting in an effectively fixed interest rate for $100 million in principal amount of the term loan (at 3.56% as of September 30, 2021; this rate can change only with a credit rating change for the Company) through the loan's maturity date of March 31, 2025. Additional details regarding the floating rate debt can be found on the following page.
(4)For loans which provide extension options that are conditional solely upon the Company providing proper notice to the loan's administrative agent and the payment of an extension fee, the final extended maturity date is reflected herein.

18


Piedmont Office Realty Trust, Inc.
Debt Detail
Unaudited ($ in thousands)
Facility (1)
Stated RateMaturityPrincipal Amount Outstanding as of September 30, 2021
$350.0 Million Unsecured 2013 Senior Notes3.40 %
(2)
6/1/2023$350,000 
$500.0 Million Unsecured Line of Credit (3)
0.99 %
(4)
9/29/202378,000 
$400.0 Million Unsecured 2014 Senior Notes4.45 %
(5)
3/15/2024400,000 
$250.0 Million Unsecured 2018 Term Loan2.04 %
(6)
3/31/2025250,000 
$300.0 Million Unsecured 2020 Senior Notes3.15 %
(7)
8/15/2030300,000 
$300.0 Million Unsecured 2021 Senior Notes2.75 %
(8)
4/1/2032300,000 
Total Debt - Principal Amount Outstanding / Weighted Average Stated Rate (9)
3.18 %$1,678,000 
GAAP Accounting Adjustments (10)
(12,899)
Total Debt - GAAP Amount Outstanding$1,665,101 
(1)All of Piedmont’s outstanding debt as of September 30, 2021, was unsecured, interest-only debt.
(2)The $350 million unsecured senior notes were offered for sale at 99.601% of the principal amount. The resulting effective cost of the financing is approximately 3.45% before the consideration of transaction costs and proceeds from interest rate hedges. After the application of proceeds from interest rate hedges, the effective cost of the financing is approximately 3.43%.
(3)All of Piedmont’s outstanding debt as of September 30, 2021, was term debt with the exception of $78 million outstanding on our unsecured revolving credit facility. The $500 million unsecured revolving credit facility has an initial maturity date of September 30, 2022; however, there are two, six-month extension options available under the facility providing for a total extension of up to one year to September 29, 2023. The final extended maturity date is presented on this schedule.
(4)The interest rate presented for the $500 million unsecured revolving credit facility is the weighted average interest rate for all outstanding draws as of September 30, 2021. Piedmont may select from multiple interest rate options with each draw under the facility, including the prime rate and various length LIBOR locks. The all-in interest rate associated with each LIBOR interest period selection is comprised of the relevant base LIBOR interest rate plus a credit spread (0.90% as of September 30, 2021) based on Piedmont's then current credit rating.
(5)The $400 million unsecured senior notes were offered for sale at 99.791% of the principal amount. The resulting effective cost of the financing is approximately 4.48% before the consideration of transaction costs and proceeds from interest rate hedges. After the application of proceeds from interest rate hedges, the effective cost of the financing is approximately 4.10%.
(6)The $250 million unsecured term loan that closed in 2018 has a stated variable interest rate; however, Piedmont entered into $100 million in notional amount of seven-year interest rate swap agreements that effectively fixed the interest rate on $100 million of the term loan (at 3.56% as of September 30, 2021; this rate can change only with a credit rating change for the Company) through the loan's maturity date of March 31, 2025. For the portion of the loan that continues to have a variable interest rate, Piedmont may select from multiple interest rate options, including the prime rate and various length LIBOR locks. The all-in interest rate associated with each LIBOR interest period selection is comprised of the relevant base LIBOR interest rate plus a credit spread (0.95% as of September 30, 2021) based on Piedmont's then current credit rating.
(7)The $300 million unsecured senior notes were offered for sale at 99.236% of the principal amount. The resulting effective cost of the financing is approximately 3.24% before the consideration of transaction costs and the impact of interest rate hedges. After incorporating the results of the related interest rate hedging activity, the effective cost of the financing is approximately 3.90%.
(8)
The $300 million unsecured senior notes were offered for sale at 99.510% of the principal amount. The resulting effective cost of the financing is approximately 2.80% before the consideration of transaction costs and the impact of interest rate hedges. After incorporating the results of the related interest rate hedging activity, the effective cost of the financing is approximately 2.78%.
(9)Weighted average is based on the principal amounts outstanding and interest rates at September 30, 2021.
(10)The GAAP accounting adjustments relate to original issue discounts, third-party fees, and lender fees resulting from the procurement processes for our various debt facilities. The original issue discounts and fees are amortized to interest expense over the contractual term of the related debt.

19


Piedmont Office Realty Trust, Inc.
Debt Covenant & Ratio Analysis (for Debt Holders)
As of September 30, 2021
Unaudited
Three Months Ended
Bank Debt Covenant Compliance (1)
Required9/30/20216/30/20213/31/202112/31/20209/30/2020
Maximum leverage ratio0.600.350.350.360.350.35
Minimum fixed charge coverage ratio (2)
1.505.285.154.964.714.54
Maximum secured indebtedness ratio0.400.010.010.01
Minimum unencumbered leverage ratio1.602.742.742.722.772.85
Minimum unencumbered interest coverage ratio (3)
1.755.495.485.445.265.13
Three Months Ended
Bond Covenant Compliance (4)
Required9/30/20216/30/20213/31/202112/31/20209/30/2020
Total debt to total assets60% or less40.4%40.8%41.1%40.6%40.3%
Secured debt to total assets40% or less—%—%0.7%0.7%0.7%
Ratio of consolidated EBITDA to interest expense1.50 or greater6.116.065.935.665.52
Unencumbered assets to unsecured debt150% or greater248%245%243%247%249%
Three Months EndedNine Months EndedTwelve Months Ended
Other Debt Coverage Ratios for Debt HoldersSeptember 30, 2021September 30, 2021December 31, 2020
Average net debt to core EBITDA (5)
5.5 x5.6 x5.8 x
Fixed charge coverage ratio (6)
5.5 x5.5 x5.2 x
Interest coverage ratio (7)
5.5 x5.5 x5.3 x





(1)Bank debt covenant compliance calculations relate to specific calculations detailed in the relevant credit agreements.
(2)Defined as EBITDA for the trailing four quarters (including the Company's share of EBITDA from unconsolidated interests), excluding one-time or non-recurring gains or losses, less a $0.15 per square foot capital reserve, and excluding the impact of straight line rent leveling adjustments and amortization of intangibles divided by the Company's share of fixed charges, as more particularly described in the credit agreements. This definition of fixed charge coverage ratio as prescribed by our credit agreements is different from the fixed charge coverage ratio definition employed elsewhere within this report.
(3)Defined as net operating income for the trailing four quarters for unencumbered assets (including the Company's share of net operating income from partially-owned entities and subsidiaries that are deemed to be unencumbered) less a $0.15 per square foot capital reserve divided by the Company's share of interest expense associated with unsecured financings only, as more particularly described in the credit agreements.
(4)Bond covenant compliance calculations relate to specific calculations prescribed in the relevant debt agreements. Please refer to the Indenture dated May 9, 2013, the Indenture and the First Supplemental Indenture dated March 6, 2014, the Second Supplemental Indenture dated August 12, 2020, and the Third Supplemental Indenture dated September 20, 2021 for detailed information about the calculations.
(5)For the purposes of this calculation, we use the average daily balance of debt outstanding during the identified period, less cash and cash equivalents and escrow deposits and restricted cash as of the end of the period.
(6)Fixed charge coverage ratio is calculated as Core EBITDA divided by the sum of interest expense, principal amortization, capitalized interest and preferred dividends. The Company had no preferred dividends during the periods ended September 30, 2021 and December 31, 2020. The Company had capitalized interest of $1,009,904 for the three months ended September 30, 2021, $2,698,357 for the nine months ended September 30, 2021 and $965,142 for the twelve months ended December 31, 2020. The Company had no principal amortization for the three months ended September 30, 2021, as it repaid its last remaining amortizing loan during the second quarter of 2021; the Company had principal amortization of $372,455 for the nine months ended September 30, 2021 and $1,076,993 for the twelve months ended December 31, 2020.
(7)Interest coverage ratio is calculated as Core EBITDA divided by the sum of interest expense and capitalized interest. The Company had capitalized interest of $1,009,904 for the three months ended September 30, 2021, $2,698,357 for the nine months ended September 30, 2021 and $965,142 for the twelve months ended December 31, 2020.

20


Piedmont Office Realty Trust, Inc.
Tenant Diversification (1)
As of September 30, 2021
(in thousands except for number of properties)
Tenant
Credit Rating (2)
Number of
Properties
Lease Expiration (3)
Annualized Lease
Revenue
Percentage of
Annualized Lease
Revenue (%)
 Leased
Square Footage
Percentage of
Leased
Square Footage (%)
US BancorpA+ / A232023 / 2024$27,0005.27875.6
State of New YorkAA+ / Aa212024 / 203926,9965.25023.6
City of New YorkAA / Aa21202614,6022.83132.2
AmazonAA / A142024 / 202514,4312.83372.4
TransoceanCCC / Caa31203610,9022.13012.1
Harvard UniversityAAA / Aaa22032 / 20338,7781.71290.9
RaytheonA- / Baa1220318,1151.64403.1
Schlumberger TechnologyA / A2120287,8201.52541.8
GartnerBB+ / Ba2220347,5221.52071.5
Salesforce.comA+ / A2120297,0961.41821.3
FiservBBB / Baa2120276,9801.31951.4
VMware, Inc.BBB- / Baa2120276,9171.32151.5
Nuance CommunicationsBB- / Ba3120306,9071.32011.4
Epsilon Data Management / subsidiary of PublicisBBB / Baa2120266,6681.32221.6
Applied Predictive Technologies / subsidiary of MasterCardA+ / A1120286,3161.21331.0
CVS CaremarkBBB / Baa2120226,2611.22081.5
International Food Policy Research InstituteNo Rating Available120296,1941.21020.7
RyanNo Rating Available120236,0121.21701.2
CargillA / A2120235,3701.02681.9
Bank of AmericaA- / A252024 / 20255,1931.01000.7
NCS Pearson, Inc.Baa3120274,9801.01471.0
OtherVarious317,19361.28,69361.6
Total$518,253100.014,106100.0







(1)This schedule presents all tenants contributing 1.0% or more to Annualized Lease Revenue.
(2)Credit rating may reflect the credit rating of the parent or a guarantor. When available, both the Standard & Poor's credit rating and the Moody's credit rating are provided. The absence of a credit rating for a tenant is not an indication of the creditworthiness of the tenant; in most cases, the lack of a credit rating reflects that the tenant has not sought such a rating.
(3)Unless otherwise indicated, Lease Expiration represents the expiration year of the majority of the square footage leased by the tenant.

21


Piedmont Office Realty Trust, Inc.
Tenant Diversification
As of September 30, 2021


Percentage of Annualized Leased Revenue (%)
September 30, 2021 as compared to December 31, 2020




chart-6ce507348cd64697954.jpg






22


Piedmont Office Realty Trust, Inc.
Tenant Credit Rating & Lease Distribution Information
As of September 30, 2021

Tenant Credit Rating (1)
Rating LevelAnnualized
Lease Revenue
(in thousands)
Percentage of
Annualized Lease
Revenue (%)
AAA / Aaa$21,5054.1
AA / Aa60,31511.6
A / A96,17418.6
BBB / Baa53,44110.3
BB / Ba29,1025.6
B / B9,9431.9
Below17,401 3.4
Not rated (2)
230,37244.5
Total$518,253100.0



Lease Distribution
Lease SizeNumber of LeasesPercentage of
Leases (%)
 Annualized
Lease Revenue
(in thousands)
 Percentage of
Annualized Lease
Revenue (%)
 Leased
Square Footage
(in thousands)
Percentage of
Leased
Square Footage (%)
2,500 or Less35437.3$21,9354.3255 1.8
2,501 - 10,00033535.363,36212.21,723 12.2
10,001 - 20,00010611.254,97610.61,479 10.5
20,001 - 40,000808.481,46615.72,248 15.9
40,001 - 100,000434.599,03019.12,598 18.4
Greater than 100,000313.3197,48438.15,803 41.2
Total949100.0$518,253100.014,106 100.0




(1)Credit rating may reflect the credit rating of the parent or a guarantor. Where differences exist between the Standard & Poor's credit rating for a tenant and the Moody's credit rating for a tenant, the higher credit rating is selected for this analysis.
(2)The classification of a tenant as "not rated" is not an indication of the creditworthiness of the tenant; in most cases, the lack of a credit rating reflects that the tenant has not sought such a rating. Included in this category are such tenants as Piper Sandler, Ernst & Young, KPMG, BDO, and RaceTrac Petroleum.

23



Piedmont Office Realty Trust, Inc.
Leased Percentage Information
(in thousands)
Three Months EndedThree Months Ended
September 30, 2021September 30, 2020
 Leased
Square Footage
 Rentable
Square Footage
Percent
Leased (1)
 Leased
Square Footage
 Rentable
Square Footage
Percent
Leased (1)
As of June 30, 20xx14,117 16,435 85.9 %15,215 17,164 88.6 %
Properties placed in service— — — — 
Restated As of June 30, 20xx14,117 16,435 85.9 %15,215 17,164 88.6 %
Leases signed during the period509 229 
  Less:
   Lease renewals signed during period(288)(151)
      New leases signed during period for currently occupied space(64)(10)
      Leases expired during period and other(168)(7)(371)
Subtotal14,106 16,428 85.9 %14,912 17,165 86.9 %
Acquisitions during period (2)
— — — — 
Dispositions during period (2)
— — — — 
As of September 30, 20xx14,106 16,428 85.9 %14,912 17,165 86.9 %
Nine Months EndedNine Months Ended
September 30, 2021September 30, 2020
 Leased
Square Footage
 Rentable
Square Footage
Percent
Leased (1)
 Leased
Square Footage
 Rentable
Square Footage
Percent
Leased (1)
As of December 31, 20xx 14,260 16,428 86.8 %14,633 16,046 91.2 %
Properties placed in service— — 204 487 
Restated As of December 31, 20xx
14,260 16,428 86.8 %14,837 16,533 89.7 %
Leases signed during the period1,851 917 
Less:
   Lease renewals signed during period(1,323)(707)
      New leases signed during period for currently occupied space(108)(47)
      Leases expired during period and other(574)— (654)(2)
Subtotal14,106 16,428 85.9 %14,346 16,531 86.8 %
Acquisitions and properties placed in service during period (2)
— — 1,367 1,435 
Dispositions and properties taken out of service during period (2)
— — (801)(801)
As of September 30, 20xx 14,106 16,428 85.9 %14,912 17,165 86.9 %
Same Store Analysis
Less acquisitions / dispositions after September 30, 2020
and developments / out-of-service redevelopments (2) (3)
— — — %(552)(739)74.7 %
Same Store Leased Percentage14,106 16,428 85.9 %14,360 16,426 87.4 %
(1)Calculated as square footage associated with commenced leases as of period end with the addition of square footage associated with uncommenced leases for spaces vacant as of period end at our in-service properties, divided by total rentable in-service square footage as of period end, expressed as a percentage.
(2)
For additional information on acquisitions and dispositions completed during the last year and current developments and out-of-service redevelopments, please refer to pages 34 and 35, respectively.
(3)Dispositions completed during the previous twelve months are deducted from the previous period data and acquisitions completed during the previous twelve months are deducted from the current period data. Redevelopments that commenced during the previous twelve months that were taken out of service are deducted from the previous period data and developments and redevelopments placed in service during the previous twelve months are deducted from the current period data.

24


Piedmont Office Realty Trust, Inc.
Rental Rate Roll Up / Roll Down Analysis (1)
(in thousands)
Three Months Ended
September 30, 2021
Square Feet% of Total Signed
During Period
% of Rentable
Square Footage
% Change
Cash Rents (2)
% Change
Accrual Rents (3) (4)
Leases executed for spaces vacant one year or less25349.7%1.5%10.5%16.1%
Leases executed for spaces excluded from analysis (5)
25650.3%
Nine Months Ended
September 30, 2021
Square Feet% of Total Signed
During Period
% of Rentable
Square Footage
% Change
Cash Rents (2)
% Change
Accrual Rents (3) (4)
Leases executed for spaces vacant one year or less1,24167.0%7.6%8.2%17.0%
Leases executed for spaces excluded from analysis (5)
61033.0%











(1)The populations analyzed for this analysis consist of consolidated leases executed during the relevant period with lease terms of greater than one year. Leases associated with storage spaces, retail spaces, management offices, and newly acquired assets for which there is less than one year of operating history, along with percentage rent leases, are excluded from this analysis.
(2)For the purposes of this analysis, the last twelve months of cash paying rents of the previous leases are compared to the first twelve months of cash paying rents of the new leases in order to calculate the percentage change.
(3)For the purposes of this analysis, the accrual basis rents of the previous leases are compared to the accrual basis rents of the new leases in order to calculate the percentage change. For newly signed leases which have variations in accrual basis rents, whether because of known future expansions, contractions, lease expense recovery structure changes, or other similar reasons, the weighted average of such varying accrual basis rents is used for the purposes of this analysis.
(4)For leases under which a tenant may use, at its discretion, a portion of its tenant improvement allowance for expenses other than those related to improvements to its space, an assumption is made that the tenant elects to use any such portion of its tenant improvement allowance for improvements to its space prior to the commencement of its lease, unless the Company is notified otherwise by the tenant. This assumption is made based upon historical usage patterns of tenant improvement allowances by the Company's tenants.
(5)Represents leases signed at our consolidated office assets that do not qualify for inclusion in the analysis, primarily because the spaces for which the new leases were signed had been vacant for more than one year.

25


Piedmont Office Realty Trust, Inc.
Lease Expiration Schedule
As of September 30, 2021
(in thousands)
Expiration Year
Annualized Lease
Revenue (1)
Percentage of
Annualized Lease
Revenue (%)
 Rentable
Square Footage
 Percentage of
Rentable
Square Footage (%)
Vacant$—2,32214.1
2021 (2)
8,2081.62561.6
2022 (3)
34,6156.71,0306.3
202354,73210.61,66610.1
202456,82711.01,70110.4
202556,58110.91,5839.6
202651,2219.91,3788.4
202749,7899.61,3578.3
202846,2738.91,2837.8
202930,6645.97814.7
203020,9034.05703.5
203114,5672.86463.9
203220,1833.94642.8
20339,3391.81761.1
Thereafter64,35112.41,2157.4
Total / Weighted Average$518,253100.016,428100.0
Average Lease Term Remaining
9/30/20216.1 years
12/31/20206.1 years
chart-e6302a6582a84ad6b1d.jpg
(1)Annualized rental income associated with each newly executed lease for currently occupied space is incorporated herein only at the expiration date for the current lease. Annualized rental income associated with each such new lease is removed from the expiry year of the current lease and added to the expiry year of the new lease. These adjustments effectively incorporate known roll ups and roll downs into the expiration schedule.
(2)
Includes leases with an expiration date of September 30, 2021, comprised of approximately 102,000 square feet and Annualized Lease Revenue of $3.6 million.
(3)Leases and other revenue-producing agreements on a month-to-month basis, comprised of approximately 18,000 square feet and Annualized Lease Revenue of $0.6 million, are assigned a lease expiration date of a year and a day beyond the period end date.

26


Piedmont Office Realty Trust, Inc.
Lease Expirations by Quarter
As of September 30, 2021
(in thousands)
Q4 2021 (1)
Q1 2022Q2 2022Q3 2022
Location
Expiring
Square
Footage
Expiring Lease
Revenue (2)
Expiring
Square
Footage
Expiring Lease
Revenue (2)
Expiring
Square
Footage
Expiring Lease
Revenue (2)
Expiring
Square
Footage
Expiring Lease
Revenue (2)
Atlanta121$3,55458$1,804152$4,81664$2,048
Boston2958349341,908
Dallas531,884261,052853,050551,968
Minneapolis471,681124121281,154
New York82942793169
Orlando51491245522025259
Washington, D.C.281,33951991782915642
Other24425626
Total / Weighted Average (3)
256$8,659117$4,136266$9,332206$8,154















(1)
Includes leases with an expiration date of September 30, 2021, comprised of approximately 102,000 square feet and expiring lease revenue of $3.5 million. No such adjustments are made to other periods presented.
(2)Expiring Lease Revenue is calculated as expiring square footage multiplied by the gross rent per square foot of the tenant currently leasing the space.
(3)Total expiring lease revenue in any given year will not tie to the expiring Annualized Lease Revenue presented on the Lease Expiration Schedule on the previous page as the Lease Expiration Schedule accounts for the revenue effects of newly signed leases. Reflected herein are expiring revenues based on in-place rental rates.

27


Piedmont Office Realty Trust, Inc.
Lease Expirations by Year
As of September 30, 2021
(in thousands)

12/31/2021 (1)
12/31/202212/31/202312/31/202412/31/2025
Location
Expiring
Square
Footage
Expiring
Lease
Revenue (2)
Expiring
Square
Footage
Expiring
Lease
Revenue (2)
Expiring
Square
Footage
Expiring
Lease
Revenue (2)
Expiring
Square
Footage
Expiring
Lease
Revenue (2)
Expiring
Square
Footage
Expiring
Lease
Revenue (2)
Atlanta121$3,554324$10,128205$6,912276$9,089425$13,160
Boston533,5181244,912392,7231485,050
Dallas531,88447515,66246116,0982228,06441416,403
Minneapolis471,681521,84570120,04753118,91126010,151
New York873643607693,7067374
Orlando5149652,3241003,2613798,5882447,364
Washington, D.C.281,339522,409683,4751728,503442,963
Other244237413713413411,096
Total / Weighted Average (3)
256$8,6591,030$36,2871,666$55,4491,701$59,9971,583$56,561















(1)
Includes leases with an expiration date of September 30, 2021, comprised of approximately 102,000 square feet and expiring lease revenue of $3.5 million. No such adjustments are made to other periods presented.
(2)Expiring Lease Revenue is calculated as expiring square footage multiplied by the gross rent per square foot of the tenant currently leasing the space.
(3)
Total expiring lease revenue in any given year will not tie to the expiring Annualized Lease Revenue presented on the Lease Expiration Schedule on page 26 as the Lease Expiration Schedule accounts for the revenue effects of newly signed leases. Reflected herein are expiring revenues based on in-place rental rates.

28


Piedmont Office Realty Trust, Inc.
Capital Expenditures
For the quarter ended September 30, 2021
Unaudited (in thousands)
For the Three Months Ended
9/30/20216/30/20213/31/202112/31/20209/30/2020
Non-incremental
Building / construction / development$8,598 $4,231 $12,921 $9,334 $6,665 
Tenant improvements5,941 9,504 3,225 9,839 7,396 
Leasing costs4,101 3,127 1,201 447 1,550 
Total non-incremental18,640 16,862 17,347 19,620 15,611 
Incremental
Building / construction / development10,348 9,757 7,065 9,913 9,343 
Tenant improvements4,282 4,835 2,544 2,014 2,225 
Leasing costs1,471 2,484 618 444 1,330 
Total incremental16,101 17,076 10,227 12,371 12,898 
Total capital expenditures$34,741 $33,938 $27,574 $31,991 $28,509 




















NOTE:The information presented on this page is for our consolidated assets.

29


Piedmont Office Realty Trust, Inc.
Contractual Tenant Improvements and Leasing Commissions
Three Months
Ended September 30, 2021
Nine Months
Ended September 30, 2021
For the Year Ended
2016 to 2021
(Weighted Average Total)
20202019201820172016
Renewal Leases
Square feet
286,5041,321,295841,0202,032,452735,9691,198,603880,2897,009,628
Tenant improvements per square foot per year of lease term (1)
$1.60$1.45$3.15$4.28$4.15$1.84$1.35$2.98
Leasing commissions per square foot per year of lease term$1.72$1.45$1.75$1.63$1.69$1.12$1.05$1.47
Total per square foot per year of lease term$3.32$2.90$4.90$5.91
(2)
$5.84
(3)
$2.96$2.40$4.45
New Leases
Square feet220,904528,659262,228697,880864,113855,0691,065,6304,273,579
Tenant improvements per square foot per year of lease term (1)
$4.34$3.93$6.22$4.07$4.58$4.73$5.01$4.62
Leasing commissions per square foot per year of lease term$1.98$1.98$2.13$1.85$1.73$1.83$1.86$1.85
Total per square foot per year of lease term$6.32$5.91$8.35
(4)
$5.92$6.31
(3)
$6.56$6.87$6.47
Total
Square feet507,4081,849,9541,103,2482,730,3321,600,0822,053,6721,945,91911,283,207
Tenant improvements per square foot per year of lease term (1)
$3.22$2.47$4.30$4.21$4.46$3.55$3.70$3.80
Leasing commissions per square foot per year of lease term$1.87$1.67$1.89$1.70$1.72$1.54$1.57$1.66
Total per square foot per year of lease term$5.09$4.14$6.19
(4)
$5.91
(2)
$6.18
(3)
$5.09$5.27$5.46
Less Adjustment for Commitment Expirations (5)
Expired tenant improvements (not paid out)
per square foot per year of lease term
-$0.17-$0.19-$0.40-$0.05-$0.54-$0.44-$0.16-$0.27
Adjusted total per square foot per year of lease term$4.92$3.95$5.79$5.86$5.64$4.65$5.11$5.19


NOTE:This information is presented for our consolidated office assets only and excludes activity associated with storage and license spaces.
(1)For leases under which a tenant may use, at its discretion, a portion of its tenant improvement allowance for expenses other than those related to improvements to its space, an assumption is made that the tenant elects to use any such portion of its tenant improvement allowance for improvements to its space prior to the commencement of its lease, unless the Company is notified otherwise by the tenant. This assumption is made based upon historical usage patterns of tenant improvement allowances by the Company's tenants.
(2)During 2019, we completed three large lease renewals with significant capital commitments: VMware at 1155 Perimeter Center West in Atlanta, GA, Siemens at Crescent Ridge II in Minnetonka, MN, and the State of New York at 60 Broad Street in New York, NY. If the costs associated with those leases were to be removed from the average committed capital cost calculation, the average committed capital cost per square foot per year of lease term for renewal leases and total leases completed during the twelve months ended December 31, 2019 would be $3.41 and $5.04, respectively.
(3)During 2018, we completed two large leasing transactions in the Houston, TX market with large capital commitments: a 254,000 square foot lease renewal and expansion with Schlumberger Technology Corporation at 1430 Enclave Parkway and a 301,000 square foot, full-building lease with Transocean Offshore Deepwater Drilling at Enclave Place. If the costs associated with those leases were to be removed from the average committed capital cost calculation, the average committed capital cost per square foot per year of lease term for renewal leases, new leases and total leases completed during the twelve months ended December 31, 2018 would be $5.27, $6.02, and $5.70, respectively.
(4)During 2020, we completed five new leasing transactions (amounting to 93,000 square feet in total) in the Washington, DC market with large capital commitments. If the costs associated with those leases were to be removed from the average committed capital cost calculation, the average committed capital cost per square foot per year of lease term for new leases and total leases completed during the twelve months ended December 31, 2020 would be $5.62 and $5.06, respectively.
(5)The Company has historically reported the maximum amount of capital to which it committed in leasing transactions as of the signing of the leases with no subsequent updates for variations and/or changes in tenants' uses of tenant improvement allowances. Many times, tenants do not fully use the allowances provided in their leases or let portions of their tenant improvement allowances expire. In an effort to provide additional clarity on the actual costs of completed leasing transactions, tenant improvement allowances that expired or became no longer available to tenants are disclosed in this section and are deducted from the capital commitments per square foot of leased space in the periods in which they expired in an effort to provide a better estimation of leasing transaction costs over time.

30


Piedmont Office Realty Trust, Inc.
Geographic Diversification
As of September 30, 2021
($ and square footage in thousands)
LocationNumber of
Properties
 Annualized
Lease Revenue
 Percentage of
Annualized Lease
Revenue (%)
 Rentable
Square Footage
Percentage of
Rentable Square
Footage (%)
 Leased Square FootagePercent Leased (%)
Dallas13$103,40020.03,54421.62,97183.8
Atlanta993,98318.13,39320.62,89085.2
Washington, D.C.668,14413.21,6209.81,32781.9
Minneapolis665,43212.62,10412.81,93491.9
Boston1061,35211.81,88511.51,73992.3
Orlando653,58710.31,75410.71,58990.6
New York148,6579.41,0296.393090.4
Other323,6984.61,0996.772666.1
Total / Weighted Average54$518,253100.016,428100.014,10685.9

chart-4dd383944e6842489be.jpg

31


Piedmont Office Realty Trust, Inc.
Geographic Diversification by Location Type
As of September 30, 2021
(square footage in thousands)

CBDURBAN INFILL / SUBURBANTOTAL
LocationStateNumber of
Properties
 Percentage
of
Annualized
Lease
Revenue
(%)
 Rentable
Square
Footage
Percentage
of Rentable
Square
Footage
(%)
Number of
Properties
 Percentage
of
Annualized
Lease
Revenue
(%)
 Rentable
Square
Footage
Percentage
of Rentable
Square
Footage
(%)
Number of
Properties
 Percentage
of
Annualized
Lease
Revenue
(%)
 Rentable
Square
Footage
Percentage
of Rentable
Square
Footage
(%)
DallasTX1320.03,54421.61320.03,54421.6
AtlantaGA918.13,39320.6918.13,39320.6
Washington, D.C.DC, VA35.97224.437.38985.4613.21,6209.8
MinneapolisMN16.59375.756.11,1677.1612.62,10412.8
BostonMA1011.81,88511.51011.81,88511.5
OrlandoFL48.51,4458.821.83091.9610.31,75410.7
New YorkNY19.41,0296.319.41,0296.3
Other34.61,0996.734.61,0996.7
Total / Weighted Average930.34,13325.24569.712,29574.854100.016,428100.0


32


Piedmont Office Realty Trust, Inc.
Industry Diversification
As of September 30, 2021
($ and square footage in thousands)
Percentage of
Number ofPercentage of TotalAnnualized LeaseAnnualized LeaseLeased SquarePercentage of Leased
IndustryTenantsTenants (%)RevenueRevenue (%)FootageSquare Footage (%)
Business Services9413.3$83,97016.22,34216.6
Engineering, Accounting, Research, Management & Related Services10014.165,80312.71,72912.3
Governmental Entity60.848,9739.49706.9
Depository Institutions182.537,5247.21,0217.2
Legal Services709.928,1335.47805.5
Miscellaneous Retail91.322,2584.35904.2
Real Estate405.721,8754.26874.9
Oil and Gas Extraction30.418,8053.65573.9
Security & Commodity Brokers, Dealers, Exchanges & Services496.917,2653.34713.3
Holding and Other Investment Offices314.415,8823.14263.0
Health Services263.715,6153.04162.9
Measuring, Analyzing, And Controlling Instruments; Medical and Other Goods50.712,4712.45874.2
Educational Services60.811,8582.32061.5
Communications466.511,2382.22631.9
Insurance Agents, Brokers & Services172.410,8972.13322.4
Other18726.695,68618.62,72919.3
Total707100.0$518,253100.014,106100.0
chart-35027b2ed4924699a7b.jpg

33



Piedmont Office Realty Trust, Inc.
Property Investment Activity
As of September 30, 2021
($ and square footage in thousands)

Acquisitions Over Previous Eighteen Months
PropertyMarket / SubmarketAcquisition DatePercent
Ownership (%)
Year BuiltPurchase Price Rentable Square
Footage
 Percent Leased at
Acquisition (%)
222 South Orange AvenueOrlando / CBD10/29/20201001959$20,000127




Dispositions Over Previous Eighteen Months
PropertyMarket / SubmarketDisposition DatePercent
Ownership (%)
Year BuiltSale Price Rentable Square
Footage
 Percent Leased at
Disposition (%)
1901 Market StreetPhiladelphia / Market Street West6/25/20201001987$360,000801100
New Jersey Portfolio (1)
New York / Route 7810/28/2020100Various130,00073975
Total / Weighted Average$490,0001,54088


Acquisitions Subsequent to Quarter End
PropertyMarket / SubmarketAcquisition DatePercent
Ownership (%)
Year BuiltPurchase PriceRentable Square
Footage
Percent Leased at
Acquisition (%)
999 Peachtree StreetAtlanta / Midtown10/22/20211001987$223,90062277






(1)The New Jersey Portfolio was comprised of Piedmont's remaining three assets in New Jersey: 200 Bridgewater Crossing and 400 Bridgewater Crossing in Bridgewater, NJ; and 600 Corporate Drive in Lebanon, NJ.

34


Piedmont Office Realty Trust, Inc.
Other Investments
As of September 30, 2021
($ and square footage in thousands)

Developable Land Parcels
PropertyMarket / SubmarketAdjacent Piedmont PropertyAcresReal Estate Book Value
GavitelloAtlanta / BuckheadThe Medici2.0$2,626
Glenridge Highlands ThreeAtlanta / Central PerimeterGlenridge Highlands One and Two3.02,015
Galleria AtlantaAtlanta / NorthwestGalleria 100, 200, 300, 400 and 60011.721,904
State Highway 161Dallas / Las ColinasLas Colinas Corporate Center I and II, 161 Corporate Center4.53,320
Royal LaneDallas / Las Colinas6011, 6021 and 6031 Connection Drive10.62,837
John Carpenter FreewayDallas / Las Colinas750 West John Carpenter Freeway3.51,000
Galleria DallasDallas / Lower North TollwayOne Galleria Tower, Two Galleria Tower, Three Galleria Tower1.94,117
TownParkOrlando / Lake Mary400 and 500 TownPark18.98,031
Total56.1$45,850

Redevelopment
PropertyMarket / SubmarketAdjacent Piedmont PropertyConstruction TypePercent Leased (%)Square FeetCurrent Asset Basis (Accrual)
222 South Orange Avenue (1)
Orlando / CBD200 South Orange AvenueRedevelopment127$21.7 million

Loan Investments
Loan TypeCollateralLocation of CollateralMaturity DateBook Value ($'s in thousands)Interest Rate
Senior Loan (2)
200 and 400 Bridgewater CrossingBridgewater, NJ10/31/2023$102,8006.0%
Mezzanine Loan (2)
Equity interests in 200 and 400 Bridgewater CrossingBridgewater, NJ10/31/2023$15,70013.6%
Total / Weighted Average$118,5007.0%




(1)The property was acquired on October 29, 2020 and shares a common lobby and atrium with the Company's 200 South Orange Avenue property. The redevelopment will include an enhanced window line, allowing more light and air into tenant spaces, along with renovations to the lobby, common areas and restrooms.
(2)Piedmont provided seller financing with the sale of 200 and 400 Bridgewater Crossing in Bridgewater, NJ, on October 28, 2020.

35


Piedmont Office Realty Trust, Inc.
Supplemental Definitions
Included below are definitions of various terms used throughout this supplemental report, including definitions of certain non-GAAP financial measures and the reasons why the Company’s management believes these measures provide useful information to investors about the Company’s financial condition and results of operations. Reconciliations of any non-GAAP financial measures defined below are included beginning on page 38.
Adjusted Funds From Operations ("AFFO"): The Company calculates AFFO by starting with Core FFO and adjusting for non-incremental capital expenditures and then adding back non-cash items including: non-real estate depreciation, straight-lined rents and fair value lease adjustments, non-cash components of interest expense and compensation expense, and by making similar adjustments for joint ventures. AFFO is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of the Company’s operating performance. The Company believes that AFFO is helpful to investors as a meaningful supplemental comparative performance measure of our ability to make incremental capital investments. Other REITs may not define AFFO in the same manner as the Company; therefore, the Company’s computation of AFFO may not be comparable to that of other REITs.
Annualized Lease Revenue ("ALR"): ALR is calculated by multiplying (i) rental payments (defined as base rent plus operating expense reimbursements, if payable by the tenant on a monthly basis under the terms of a lease that has been executed, but excluding a) rental abatements and b) rental payments related to executed but not commenced leases for space that was covered by an existing lease), by (ii) 12. In instances in which contractual rents or operating expense reimbursements are collected on an annual, semi-annual, or quarterly basis, such amounts are multiplied by a factor of 1, 2, or 4, respectively, to calculate the annualized figure. For leases that have been executed but not commenced relating to un-leased space, ALR is calculated by multiplying (i) the monthly base rental payment (excluding abatements) plus any operating expense reimbursements for the initial month of the lease term, by (ii) 12. Unless stated otherwise, this measure excludes revenues associated with development properties and properties taken out of service for redevelopment, if any.
Core EBITDA: The Company calculates Core EBITDA as net income (computed in accordance with GAAP) before interest, taxes, depreciation and amortization and incrementally removing any impairment losses, gains or losses from sales of property and other significant infrequent items that create volatility within our earnings and make it difficult to determine the earnings generated by our core ongoing business. Core EBITDA is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of the Company’s operating performance. The Company believes that Core EBITDA is helpful to investors as a supplemental performance measure because it provides a metric for understanding the performance of the Company’s results from ongoing operations without taking into account the effects of non-cash expenses (such as depreciation and amortization), as well as items that are not part of normal day-to-day operations of the Company’s business. Other REITs may not define Core EBITDA in the same manner as the Company; therefore, the Company’s computation of Core EBITDA may not be comparable to that of other REITs.
Core Funds From Operations ("Core FFO"): The Company calculates Core FFO by starting with FFO, as defined by NAREIT, and adjusting for gains or losses on the extinguishment of swaps and/or debt and any significant non-recurring items. Core FFO is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of the Company’s operating performance. The Company believes that Core FFO is helpful to investors as a supplemental performance measure because it excludes the effects of certain items which can create significant earnings volatility, but which do not directly relate to the Company’s core business operations. As a result, the Company believes that Core FFO can help facilitate comparisons of operating performance between periods and provides a more meaningful predictor of future earnings potential. Other REITs may not define Core FFO in the same manner as the Company; therefore, the Company’s computation of Core FFO may not be comparable to that of other REITs.
EBITDA: EBITDA is defined as net income before interest, taxes, depreciation and amortization.
EBITDAre: The Company calculates EBITDAre in accordance with the current National Association of Real Estate Investment Trusts (“NAREIT”) definition. NAREIT currently defines EBITDAre as net income (computed in accordance with GAAP) adjusted for gains or losses from sales of property, impairment losses, depreciation on real estate assets, amortization on real estate assets, interest expense and taxes, along with the same adjustments for joint ventures. Some of the adjustments mentioned can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates. EBITDAre is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of the Company’s operating performance. The Company believes that EBITDAre is helpful to investors as a supplemental performance measure because it provides a metric for understanding the Company’s results from ongoing operations without taking into account the effects of non-cash expenses (such as depreciation and amortization) and capitalization and capital structure expenses (such as interest expense and taxes). The Company also believes that EBITDAre can help facilitate comparisons of operating performance between periods and with other REITs. However, other REITs may not define EBITDAre in accordance with the NAREIT definition, or may interpret the current NAREIT definition differently than the Company; therefore, the Company’s computation of EBITDAre may not be comparable to that of such other REITs.
Funds From Operations ("FFO"): The Company calculates FFO in accordance with the current National Association of Real Estate Investment Trusts (“NAREIT”) definition. NAREIT currently defines FFO as net income (calculated in accordance with GAAP), excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control, and impairment write-downs of certain real estate assets and investment in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity, along with appropriate adjustments to those reconciling items for joint ventures. These adjustments can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates. FFO is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of the Company’s operating performance. The Company believes that FFO is helpful to investors as a supplemental performance measure because it excludes the effects of depreciation, amortization and gains or losses from sales of real estate, all of which are based on historical costs, which implicitly assumes that the value of real estate diminishes predictably over time. The Company also believes that FFO can help facilitate comparisons of operating performance between periods and with other REITs. However, other REITs may not define FFO in accordance with the NAREIT definition, or may interpret the current NAREIT definition differently than the Company; therefore, the Company’s computation of FFO may not be comparable to that of such other REITs.
Gross Assets: Gross Assets is defined as total assets with the add-back of accumulated depreciation and accumulated amortization related to real estate assets and accumulated amortization related to deferred lease costs.
Gross Real Estate Assets: Gross Real Estate Assets is defined as total real estate assets with the add-back of accumulated depreciation and accumulated amortization related to real estate assets.
Incremental Capital Expenditures: Incremental Capital Expenditures are defined as capital expenditures of a non-recurring nature that incrementally enhance the underlying assets' income generating capacity. Tenant improvements, leasing commissions, building capital and deferred lease incentives ("Leasing Costs") incurred to lease space that was vacant at acquisition, Leasing Costs for spaces vacant for greater than one year, Leasing Costs for spaces at newly acquired properties for which in-place leases expire shortly after acquisition, improvements associated with the expansion of a building, renovations that change the underlying classification of a building, and deferred building maintenance capital identified at and completed shortly after acquisition are included in this measure.
Non-Incremental Capital Expenditures: Non-Incremental Capital Expenditures are defined as capital expenditures of a recurring nature related to tenant improvements and leasing commissions that do not incrementally enhance the underlying assets' income generating capacity. We exclude first generation tenant improvements and leasing commissions from this measure, in addition to other capital expenditures that qualify as Incremental Capital Expenditures, as defined above.
Property Net Operating Income ("Property NOI"): The Company calculates Property NOI by starting with Core EBITDA and adjusting for general and administrative expense, income associated with property management performed by Piedmont for other organizations and other income or expense items for the Company, such as interest income from loan investments or costs from the pursuit of non-consummated transactions. The Company may present this measure on an accrual basis or a cash basis. When presented on a cash basis, the effects of straight lined rents and fair value lease revenue are also eliminated. Property NOI is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of the Company’s operating performance. The Company believes that Property NOI is helpful to investors as a supplemental comparative performance measure of income generated by its properties alone without the administrative overhead of the Company. Other REITs may not define Property NOI in the same manner as the Company; therefore, the Company’s computation of Property NOI may not be comparable to that of other REITs.
Same Store Net Operating Income ("Same Store NOI"): The Company calculates Same Store NOI as Property NOI attributable to the properties for which the following criteria were met during the entire span of the current and prior year reporting periods: (i) they were owned, (ii) they were not under development / redevelopment, and (iii) none of the operating expenses for which were capitalized. Same Store NOI also excludes amounts attributable to land assets. The Company may present this measure on an accrual basis or a cash basis. When presented on a cash basis, the effects of straight lined rents and fair value lease revenue are also eliminated. Same Store NOI is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of the Company’s operating performance. The Company believes that Same Store NOI is helpful to investors as a supplemental comparative performance measure of the income generated from the same group of properties from one period to the next. Other REITs may not define Same Store NOI in the same manner as the Company; therefore, the Company’s computation of Same Store NOI may not be comparable to that of other REITs.
Same Store Properties: Same Store Properties is defined as those properties for which the following criteria were met during the entire span of the current and prior year reporting periods: (i) they were owned, (ii) they were not under development / redevelopment, and (iii) none of the operating expenses for which were capitalized. Same Store Properties excludes land assets.

36


Piedmont Office Realty Trust, Inc.
Research Coverage

Equity Research Coverage
Daniel IsmailAnthony Paolone, CFADavid Rodgers, CFAMichael Lewis, CFA
Green Street AdvisorsJP MorganRobert W. Baird & Co.Truist Securities
100 Bayview Circle, Suite 400383 Madison Avenue200 Public Square711 Fifth Avenue, 4th Floor
Newport Beach, CA 9266032nd FloorSuite 1650New York, NY 10022
Phone: (949) 640-8780New York, NY 10179Cleveland, OH 44139Phone: (212) 319-5659
Phone: (212) 622-6682Phone: (216) 737-7341

Fixed Income Research Coverage
Mark S. Streeter, CFA
JP Morgan
383 Madison Avenue
3rd Floor
New York, NY 10179
Phone: (212) 834-5086

37


Piedmont Office Realty Trust, Inc.
Funds From Operations, Core Funds From Operations, and Adjusted Funds From Operations Reconciliations
Unaudited (in thousands)
Three Months EndedNine Months Ended
9/30/20216/30/20213/31/202112/31/20209/30/20209/30/20219/30/2020
GAAP net income applicable to common stock$11,306 $9,947 $9,344 $22,609 $8,943 $30,597 $210,079 
Depreciation
30,336 29,725 27,812 26,942 27,960 87,873 82,384 
Amortization
20,362 20,681 22,900 22,312 22,976 63,943 70,930 
Loss / (gain) on sale of properties
— — — (14,634)340 — (191,032)
NAREIT funds from operations applicable to common stock62,004 60,353 60,056 57,229 60,219 182,413 172,361 
Adjustments:
Loss / (gain) on extinguishment of debt— — — — — — 9,336 
Core funds from operations applicable to common stock62,004 60,353 60,056 57,229 60,219 182,413 181,697 
Adjustments:
Amortization of debt issuance costs, fair market adjustments on notes payable, and discount on senior notes849 573 654 653 931 2,076 2,180 
Depreciation of non real estate assets216 264 282 286 286 762 930 
Straight-line effects of lease revenue
(2,122)(2,402)(4,103)(2,223)(6,315)(8,627)(20,378)
Stock-based compensation adjustments1,637 2,404 1,111 2,733 1,336 5,152 4,281 
Amortization of lease-related intangibles
(2,731)(2,669)(2,792)(2,767)(3,240)(8,192)(9,517)
Non-incremental capital expenditures(18,640)(16,862)(17,347)(19,620)(15,611)(52,849)(58,062)
Adjusted funds from operations applicable to common stock$41,213 $41,661 $37,861 $36,291 $37,606 $120,735 $101,131 







38


Piedmont Office Realty Trust, Inc.
Same Store Net Operating Income (Cash Basis)
Unaudited (in thousands)
Three Months EndedNine Months Ended
9/30/20216/30/20213/31/202112/31/20209/30/20209/30/20219/30/2020
Net income attributable to Piedmont$11,306 $9,947 $9,344 $22,609 $8,943 $30,597 $210,079 
Net income / (loss) attributable to noncontrolling interest(5)(3)(1)(1)(3)(9)(2)
Interest expense12,450 12,345 12,580 13,048 12,725 37,375 41,942 
Depreciation30,552 29,989 28,094 27,228 28,247 88,635 83,315 
Amortization20,362 20,681 22,900 22,312 22,976 63,943 70,930 
Depreciation and amortization attributable to noncontrolling interests21 21 21 20 22 63 64 
Loss / (gain) on sale of properties— — — (14,634)340 — (191,032)
EBITDAre74,686 72,980 72,938 70,582 73,250 220,604 215,296 
(Gain) / loss on extinguishment of debt— — — — — — 9,336 
Core EBITDA74,686 72,980 72,938 70,582 73,250 220,604 224,632 
General & administrative expenses6,955 8,211 7,251 7,415 5,469 22,417 20,049 
Non-cash general reserve for uncollectible accounts— — 412 (278)(33)412 4,831 
Management fee revenue(309)(247)(390)(397)(422)(946)(1,098)
Other (income) / expense(2,121)(2,162)(2,141)(1,554)(104)(6,423)(170)
Straight-line effects of lease revenue(2,122)(2,402)(4,103)(2,223)(6,315)(8,627)(20,378)
Straight-line effects of lease revenue attributable to noncontrolling interests— (4)(5)(12)
Amortization of lease-related intangibles(2,731)(2,669)(2,792)(2,767)(3,240)(8,192)(9,517)
Property net operating income (cash basis)74,359 73,711 71,176 70,774 68,600 219,247 218,337 
Deduct net operating (income) / loss from:
Acquisitions(8,012)(8,761)(7,440)(7,795)(6,041)(24,214)(15,320)
Dispositions(359)(258)413 (824)(3,338)(204)(20,225)
Other investments254 182 144 162 150 580 388 
Same store net operating income (cash basis)$66,242 $64,874 $64,293 $62,317 $59,371 $195,409 $183,180 










39


Piedmont Office Realty Trust, Inc.
Property Detail - In-Service Portfolio (1)
As of September 30, 2021
(in thousands)
PropertyCityStatePercent
Ownership
Year Built / RenovationRentable
Square Footage
Owned
Leased
Percentage
Commenced
Leased
Percentage
Economic
Leased
Percentage (2)
Atlanta
Glenridge Highlands One Atlanta  GA 100.0%1998 / 202128893.1 %91.3 %89.6 %
Glenridge Highlands Two Atlanta  GA 100.0%200042499.5 %97.9 %86.1 %
1155 Perimeter Center West Atlanta  GA 100.0%200037776.4 %76.4 %76.4 %
Galleria 100 Atlanta  GA 100.0%1982 / 201941583.1 %81.4 %81.2 %
Galleria 200 Atlanta  GA 100.0%1984 / 202143286.6 %80.1 %79.2 %
Galleria 300 Atlanta  GA 100.0%198743788.6 %88.1 %88.1 %
Galleria 400 Atlanta  GA 100.0%199943092.6 %92.1 %88.8 %
Galleria 600 Atlanta  GA 100.0%200243460.4 %59.9 %57.6 %
The Medici Atlanta  GA 100.0%200815693.6 %93.6 %93.6 %
Metropolitan Area Subtotal / Weighted Average3,39385.2 %83.6 %81.1 %
Boston
1414 Massachusetts Avenue Cambridge  MA 100.0%1873 / 195678100.0 %100.0 %100.0 %
One Brattle Square Cambridge  MA 100.0%19919697.9 %97.9 %97.9 %
One Wayside Road Burlington  MA 100.0%1997201100.0 %100.0 %100.0 %
5 & 15 Wayside Road Burlington  MA 100.0%1999 & 2001272100.0 %86.4 %86.4 %
5 Wall Street Burlington  MA 100.0%2008182100.0 %100.0 %100.0 %
25 Burlington Mall Road Burlington  MA 100.0%1987 / 202129183.8 %80.8 %61.9 %
225 Presidential Way Woburn  MA 100.0%2001202100.0 %100.0 %100.0 %
235 Presidential Way Woburn  MA 100.0%2000238100.0 %100.0 %100.0 %
80 Central Street Boxborough  MA 100.0%198815035.3 %35.3 %35.3 %
90 Central Street Boxborough  MA 100.0%2001175100.0 %100.0 %100.0 %
Metropolitan Area Subtotal / Weighted Average1,88592.3 %89.8 %86.9 %
Dallas
161 Corporate Center Irving  TX 100.0%199810580.0 %80.0 %80.0 %
750 West John Carpenter Freeway Irving  TX 100.0%199931693.4 %91.5 %91.5 %
6011 Connection Drive Irving  TX 100.0%1999152100.0 %100.0 %100.0 %
6021 Connection Drive Irving  TX 100.0%2000222100.0 %100.0 %100.0 %
6031 Connection Drive Irving  TX 100.0%1999 / 201823256.0 %56.0 %56.0 %
6565 North MacArthur Boulevard Irving  TX 100.0%199825572.9 %69.0 %66.7 %
Las Colinas Corporate Center I Irving  TX 100.0%1998 / 202116138.5 %38.5 %38.5 %
Las Colinas Corporate Center II Irving  TX 100.0%1998 / 202122572.4 %72.4 %67.6 %
One Lincoln Park Dallas  TX 100.0%199926282.4 %65.3 %64.1 %
Park Place on Turtle Creek Dallas  TX 100.0%1986 / 201817783.1 %83.1 %83.1 %
One Galleria Tower Dallas TX100.0%1982 / 201847088.5 %88.5 %87.7 %
Two Galleria Tower Dallas TX100.0%1985 / 201843589.7 %89.7 %88.5 %
Three Galleria Tower Dallas TX100.0%199153295.5 %95.5 %95.5 %
Metropolitan Area Subtotal / Weighted Average3,54483.8 %82.1 %81.3 %
40


PropertyCityStatePercent
Ownership
Year Built / RenovationRentable
Square Footage
Owned
Leased
Percentage
Commenced
Leased
Percentage
Economic
Leased
Percentage (2)
Minneapolis
US Bancorp Center Minneapolis  MN 100.0%200093793.2 %93.2 %92.2 %
Crescent Ridge II Minnetonka  MN 100.0%2000 / 202130180.4 %80.4 %61.1 %
Norman Pointe I Bloomington  MN 100.0%2000 / 202021485.0 %85.0 %84.1 %
9320 Excelsior Boulevard Hopkins  MN 100.0%2010268100.0 %100.0 %100.0 %
One Meridian Crossings Richfield  MN 100.0%1997195100.0 %100.0 %100.0 %
Two Meridian Crossings Richfield  MN 100.0%199818992.1 %92.1 %92.1 %
Metropolitan Area Subtotal / Weighted Average2,10491.9 %91.9 %88.6 %
New York
60 Broad Street New York  NY 100.0%19621,02990.4 %90.4 %77.2 %
Metropolitan Area Subtotal / Weighted Average1,02990.4 %90.4 %77.2 %
Orlando
400 TownParkLake Mary  FL 100.0%200817594.3 %94.3 %94.3 %
500 TownParkLake Mary  FL 100.0%2016134100.0 %100.0 %100.0 %
200 South Orange AvenueOrlando FL100.0%1988 / 202164680.7 %78.0 %76.9 %
501 West Church StreetOrlando FL100.0%2003182100.0 %100.0 %100.0 %
CNL Center IOrlando FL99.0%199934798.3 %87.6 %87.6 %
CNL Center IIOrlando FL99.0%200627091.1 %91.1 %91.1 %
Metropolitan Area Subtotal / Weighted Average1,75490.6 %87.5 %87.1 %
Washington, D.C.
400 Virginia Avenue Washington  DC 100.0%198522682.7 %63.7 %63.7 %
1201 Eye Street Washington  DC
98.6% (3)
200127157.9 %54.6 %54.6 %
1225 Eye Street Washington  DC
98.1% (3)
198622585.3 %85.3 %83.6 %
3100 Clarendon Boulevard Arlington  VA 100.0%1987 / 201526181.2 %76.2 %70.5 %
4250 North Fairfax Drive Arlington  VA 100.0%199830893.8 %93.8 %85.7 %
Arlington Gateway Arlington  VA 100.0%200532988.1 %88.1 %88.1 %
Metropolitan Area Subtotal / Weighted Average1,62081.9 %77.9 %75.2 %
Other
1430 Enclave ParkwayHouston TX 100.0%199431382.7 %82.7 %82.7 %
Enclave PlaceHoustonTX100.0%2015301100.0 %100.0 %100.0 %
Two Pierce PlaceItascaIL100.0%1991 / 201848534.2 %34.2 %33.8 %
Subtotal/Weighted Average1,09966.1 %66.1 %65.9 %
Grand Total16,42885.9 %84.2 %81.6 %
(1)
This schedule includes information for Piedmont's in-service portfolio of properties only. Information on investments excluded from this schedule can be found on page 35.
(2)Economic leased percentage excludes the square footage associated with executed but not commenced leases for currently vacant spaces and the square footage associated with tenants receiving rental abatements (after proportional adjustments for tenants receiving only partial rental abatements).
(3)Although Piedmont owns 98.6% of 1201 Eye Street and 98.1% of 1225 Eye Street, it is entitled to 100% of the cash flows for each asset pursuant to the terms of each property ownership entity's joint venture agreement.


41


Piedmont Office Realty Trust, Inc.
Supplemental Operating & Financial Data
Risks, Uncertainties and Limitations


Certain statements contained in this supplemental package constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We intend for all such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, as applicable. Such information is subject to certain risks and uncertainties, as well as known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of our performance in future periods. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” "estimate," “believe,” “continue” or similar words or phrases that are predictions of future events or trends and which do not relate solely to historical matters. Examples of such statements in this supplemental package include: the estimated financial impacts associated with, and the general business and economic recovery from, the COVID-19 pandemic; estimated Core FFO and Core FFO per diluted share for calendar year 2021; expected future capital expenditures; and potential future acquisition, disposition and financing activity.
The following are some of the factors that could cause our actual results and expectations to differ materially from those described in our forward-looking statements: economic, regulatory, socio-economic changes, and/or technology changes (including accounting standards) that impact the real estate market generally, or that could affect patterns of use of commercial office space; the impact of competition on our efforts to renew existing leases or re-let space on terms similar to existing leases; changes in the economies and other conditions affecting the office sector in general and specifically the seven markets in which we primarily operate where we have high concentrations of our annualized lease revenue; lease terminations, lease defaults, or changes in the financial condition of our tenants, particularly by one of our large lead tenants; adverse market and economic conditions, including any resulting impairment charges on both our long-lived assets or goodwill resulting therefrom; the success of our real estate strategies and investment objectives, including our ability to identify and consummate suitable acquisitions and divestitures; the illiquidity of real estate investments, including regulatory restrictions to which real estate investment trusts ("REITs") are subject and the resulting impediment on our ability to quickly respond to adverse changes in the performance of our properties; the risks and uncertainties associated with our acquisition and disposition of properties, many of which risks and uncertainties may not be known at the time of acquisition or disposition; development and construction delays and resultant increased costs and risks; our real estate development strategies may not be successful; future acts of terrorism, civil unrest, or armed hostilities in any of the major metropolitan areas in which we own properties, or future cybersecurity attacks against any of our tenants; risks related to the occurrence of cyber incidents, or a deficiency in our cybersecurity, which could negatively impact our business by causing a disruption to our operations, a compromise or corruption of our confidential information, and/or damage to our business relationships; costs of complying with governmental laws and regulations; uninsured losses or losses in excess of our insurance coverage, and our inability to obtain adequate insurance coverage at a reasonable cost; additional risks and costs associated with directly managing properties occupied by government tenants, including an increased risk of default by government tenants during periods in which state or federal governments are shut down or on furlough; significant price and volume fluctuations in the public markets, including on the exchange which we listed our common stock; changes in interest rates and changes in the method pursuant to which the LIBOR rates are determined and the planned phasing out of USD LIBOR after June 2023; high interest rates which could affect our ability to finance or refinance properties; the effect of future offerings of debt or equity securities or changes in market interest rates on the value of our common stock; uncertainties associated with environmental and other regulatory matters; potential changes in the political environment and reduction in federal and/or state funding of our governmental tenants; changes in the financial condition of our tenants directly or indirectly resulting from geopolitical developments that could negatively affect international trade, the termination or threatened termination of existing international trade agreements, or the implementation of tariffs or retaliatory tariffs on imported or exported goods; the effect of any litigation to which we are, or may become, subject; additional risks and costs associated with owning properties occupied by tenants in particular industries, such as oil and gas, hospitality, travel, co-working, etc., including risks of default during start-up and during economic downturns; 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, or other tax law changes which may adversely affect our stockholders; the future effectiveness of our internal controls and procedures; actual or threatened public health epidemics or outbreaks, such as the ongoing COVID-19 pandemic, and governmental and private measures taken to combat such health crises, which may affect our personnel, tenants, tenants' operations and ability to pay lease obligations, demand for office space, and the costs of operating our assets; the adequacy of our general reserve related to tenant lease-related assets established as a result of the COVID-19 pandemic, as well as the impact of any increase in this reserve or the establishment of any other reserve in the future; and other factors, including the risk factors discussed under Item 1A. of Piedmont’s most recent Annual Report on Form 10-K and other documents we file with the Securities and Exchange Commission.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this supplemental report. We cannot guarantee the accuracy of any such forward-looking statements contained in this supplemental report, and we do not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

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