Segment Information

3 Months Ended

Mar. 31, 2024

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, Northern Virginia/Washington, D.C., Minneapolis, New York, and Boston. These operating segments are also Piedmont’s reportable segments. As of March 31, 2024, 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, 2024		March 31, 2023
Atlanta	$	41,770	$	39,217
Dallas	28,705		28,282
Orlando	15,349		15,414
Northern Virginia/Washington, D.C.	15,581		14,899
Minneapolis	13,117		14,961
New York	13,691		13,485
Boston	11,143		10,251
Total reportable segments	139,356		136,509
Other	5,182		5,858
Total Revenues	$	144,538	$	142,367

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

	Three Months Ended
	March 31, 2024		March 31, 2023
Atlanta	$	26,143	$	25,186
Dallas	16,535		15,776
Orlando	9,014		9,265
Northern Virginia/Washington, D.C.	9,311		8,980
Minneapolis	6,630		8,222
New York	7,249		7,371
Boston	7,182		6,333
Total reportable segments	82,064		81,133
Other	3,142		3,366
Total NOI	$	85,206	$	84,499

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

	Three Months Ended
	March 31, 2024		March 31, 2023
Net loss applicable to Piedmont	$	(27,763)	$	(1,367)
Management fee revenue (1)	5		(293)
Depreciation and amortization	56,989		57,828
Impairment charges	18,432		—
General and administrative expenses	7,612		7,691
Interest expense	29,714		22,077
Other income	(171)		(1,440)
Loss on early extinguishment of debt	386		—
Net income applicable to noncontrolling interest	2		3
Total NOI	$	85,206	$	84,499

(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.