Highlights

  • Third quarter 2026 net loss applicable to common stockholders was approximately $21.0 million, or $0.17 per diluted share, versus $13.5 million.
  • Core FFO per diluted share was $0.39, compared with $0.35, and total revenues were $151.2 million, compared with $139.1 million.
  • The net loss included a loss on early extinguishment of debt of approximately $20.2 million, partly offset by an $8.9 million land gain.
  • Management said on the call that it expects 2026 Core FFO of $1.55 to $1.57 per diluted share.

Piedmont Realty Trust, Inc. (NYSE: PDM) shares were trading at USD 9.31 on October 27, 2026, down 3.12%, with a relative volume at time of 2.02. The office real estate company acquired 4075 Wilson Boulevard in Arlington, Virginia, issued $230.0 million of exchangeable senior notes, redeemed its remaining 2028 senior notes during the third quarter of 2026, and filed its Form 10-Q for the quarter ended September 30, 2026 on October 26, 2026.

Piedmont Realty Trust is incorporated in Maryland and lists its principal executive offices in Atlanta, Georgia. Its portfolio consists of office projects located in growth submarkets of large metropolitan cities, concentrated primarily in the Sunbelt. As of September 30, 2026, it owned and operated 30 in-service projects and two redevelopment projects. The in-service office projects total approximately 15.3 million square feet of primarily Class A office space and were 87.7% leased.

Third Quarter 2026 Results

Net loss applicable to common stockholders for the three months ended September 30, 2026 was approximately $21.0 million, or $0.17 per diluted share, compared with $13.5 million, or $0.11 per diluted share, a year earlier. The company said the primary driver of the increase in net loss was an approximately $20.2 million loss on early extinguishment of debt related to the redemption of its remaining $600 Million Unsecured Senior Notes due 2028, partially offset by an $8.9 million gain on the sale of a land parcel.

Total revenues were $151.2 million, compared with $139.1 million. Property operating costs were $60.0 million, compared with $55.9 million. Total net operating income, a non-GAAP measure, was $91,148 thousand, compared with $83,267 thousand.

Core FFO applicable to common stock, a non-GAAP measure, was $50,144 thousand, compared with $43,485 thousand, and Core FFO per diluted share was $0.39, compared with $0.35. For the nine months ended September 30, 2026, total revenues were $438.6 million, compared with $422.1 million, and net loss applicable to Piedmont was $45,043 thousand, compared with $40,374 thousand.

Financing, Liquidity and Capital

During the third quarter, Piedmont OP issued $230.0 million principal amount of 2.875% exchangeable senior notes due 2031. During the nine months, the company amended its unsecured term loan to increase the principal amount from $325 million to $400 million and extend the maturity date to May 28, 2031.

As of September 30, 2026, the company had approximately $448 million of borrowing capacity under its $600 Million Unsecured 2022 Line of Credit and no required debt maturities until 2028. The 4075 Wilson Boulevard acquisition, with a net purchase price of $52.0 million, was primarily funded using proceeds from the line of credit and cash on hand.

Total capital expenditures were $118,008 thousand for the nine months. The company did not declare or pay dividends on its common stock during the nine months ended September 30, 2026, and said future dividends, if any, depend on factors including cash generated from operating activities.

2026 Guidance and Plans

On the call, management said it is increasing and narrowing 2026 Core FFO guidance to a range of $1.55 to $1.57 per diluted share, an increase of $0.06 per share at the midpoint compared with its original outlook. It expects same-store NOI to increase 7.5% to 8.5% on a cash basis and 5% to 6% on an accrual basis for the year.

Management said the guidance does not include speculative acquisitions, dispositions or refinancing activity, other than Enclave Place. It also said it placed one of its two Houston assets under contract for disposition, with closing expected before year end, and reported an uncommenced lease pipeline of $29 million in annual revenue.