Key Highlights

  • PDM is trading up 0.22% at $9.27 on October 21, with a market capitalization of about $1.16 billion.
  • Third-quarter results are due Monday, October 26.
  • Second-quarter core FFO was $0.38 per diluted share, up from $0.36 a year earlier.
  • The company priced $200 million of exchangeable senior notes on September 14 and 15.
  • Trailing earnings per share are negative $0.65, so no P/E is calculated.

What Is Piedmont Realty Trust Facing Before Its October 26 Earnings?

Piedmont Realty Trust (NYSE:PDM) will report third-quarter 2026 results on Monday, October 26, according to a company announcement dated October 5. The shares are trading up 0.22% at $9.27 on October 21, and no company announcement was identified for the move.

The company, formerly Piedmont Office Realty Trust, is a real estate investment trust that owns office buildings in Sunbelt markets. The question for the report is whether the record leasing described after the second quarter is translating into occupancy gains, and whether the company can raise its 2026 guidance for a third time.

The most recent company news was a financing. On September 14 and 15 the company priced $200 million of exchangeable senior notes.

What Did the Second-Quarter Call Set Up?

Second-quarter revenue was $144.1 million, up from $140.3 million a year earlier. Core funds from operations were $47.9 million, or $0.38 per diluted share, against $0.36, and adjusted funds from operations rose to $31.0 million from $16.2 million. Same-store cash net operating income grew 9.0%. The net loss narrowed to $0.09 per share from $0.14.

Leasing volume was 459,000 square feet across 42 transactions, including 262,000 square feet of new tenant leasing, with cash rents rolling up 14.1%. The in-service leased percentage was 88.9%, down from 89.3% at the end of the first quarter.

Management raised 2026 guidance for the second consecutive quarter. Core FFO is now expected at $1.50 to $1.55 per share, from $1.47 to $1.53, with executed leasing of 1.7 million to 2.0 million square feet and a year-end in-service leased percentage of 89.5% to 90.5%. Same-store NOI growth is guided to 5% to 8%, and net interest expense to $128 million to $130 million.

What Would Strong and Weak Readings Look Like?

For a real estate investment trust the key measure is funds from operations per share, since earnings under accounting rules are often distorted by depreciation and impairments. Trailing earnings per share are negative $0.65, which is why the P/E is blank, and that figure is not a clean guide to cash earnings. The consensus analyst rating is Neutral.

Positive signals would be core FFO tracking toward the $1.50 to $1.55 range, an occupancy move from 88.9% toward the year-end target, and a further guidance raise. Remaining 2026 lease expirations total 909,000 square feet, or 8.3% of annualized lease revenue, with 690,000 square feet expiring in the third quarter, including a 313,000 square foot New York lease in holdover. Backfilling those spaces is the test.

Negative signals would be expirations that are not backfilled, interest costs above the guided range, or guidance that is held without a raise. These are the readings investors will compare against and not predictions.

What Do Office Landlords Need to Show on October 26?

Piedmont enters the report with total debt of about $2.25 billion at a weighted average cost of 5.50%, no maturities until 2028, and a fully available $600 million revolver. Net debt was 7.2 times core EBITDA on a trailing basis. Investors will watch occupancy, funds from operations against guidance and any change to the 2026 outlook, along with how the new exchangeable notes fit the financing plan.