Segment Information

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segment Information

Segment Information

Piedmont's President and Chief Executive Officer has been identified as Piedmont's chief operating decision maker ("CODM"), as defined by GAAP. The CODM evaluates Piedmont's portfolio and assesses the ongoing operations and performance of its properties utilizing the following geographic segments: Atlanta, Dallas, Orlando, Washington, D.C./Northern Virginia, Minneapolis, New York, and Boston. These operating segments are also Piedmont’s reportable segments. As of March 31, 2023, Piedmont also owned two properties in Houston that do not meet the definition of an operating or reportable segment as the CODM does not regularly review these properties for purposes of allocating resources or assessing performance. Further, Piedmont does not maintain a significant presence or anticipate further investment in this market. These two properties are the primary contributors to accrual-based net operating income ("NOI") included in "Other" below. During the periods presented, there have been no material inter segment transactions. The accounting policies of the reportable segments are the same as Piedmont's accounting policies.

Accrual-based net operating income ("NOI") by geographic segment is the primary performance measure reviewed by Piedmont's CODM to assess operating performance and consists only of revenues and expenses directly related to real estate rental operations. NOI is calculated by deducting property operating costs from lease revenues and other property related income. NOI reflects property acquisitions and dispositions, occupancy levels, rental rate increases or decreases, and the

recoverability of operating expenses. Piedmont's calculation of NOI may not be directly comparable to similarly titled measures calculated by other REITs.

Asset value information and capital expenditures by segment are not reported because the CODM does not use these measures to assess performance.

The following table presents accrual-based lease revenue and other property related income included in NOI by geographic reportable segment (in thousands):

	Three Months Ended
	March 31, 2023		March 31, 2022
Atlanta	$	39,217	$	29,268
Dallas	28,282		27,085
Orlando	15,414		13,906
Washington, D.C./Northern Virginia	14,899		15,606
Minneapolis	14,961		15,109
New York	13,485		13,875
Boston	10,251		15,365
Total reportable segments	136,509		130,214
Other	5,858		5,935
Total Revenues	$	142,367	$	136,149

The following table presents NOI by geographic reportable segment (in thousands):

	Three Months Ended
	March 31, 2023		March 31, 2022
Atlanta	$	25,186	$	18,555
Dallas	15,776		16,099
Orlando	9,265		8,499
Washington, D.C./Northern Virginia	8,980		10,047
Minneapolis	8,222		7,914
New York	7,371		7,757
Boston	6,333		10,473
Total reportable segments	81,133		79,344
Other	3,366		3,037
Total NOI	$	84,499	$	82,381

A reconciliation of Net income/(loss) applicable to Piedmont to NOI is presented below (in thousands):

	Three Months Ended
	March 31, 2023		March 31, 2022
Net income/(loss) applicable to Piedmont	$	(1,367)	$	59,964
Management fee revenue (1)	(293)		(362)
Depreciation and amortization	57,828		53,767
General and administrative expenses	7,691		7,595
Interest expense	22,077		13,898
Other income	(1,440)		(1,808)
Gain on sale of real estate assets	—		(50,673)
Net income applicable to noncontrolling interests	3		—
NOI	$	84,499	$	82,381

(1)Presented net of related operating expenses incurred to earn such management fee revenue. Such operating expenses are a component of property operating costs in the accompanying consolidated statements of operations.