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Mar 31, 2020
Piedmont Q1 2020 Earnings Report
Piedmont reported results inline with expectations, completing the largest acquisition and placing another large asset under contract to sell.
Key Takeaways
Piedmont Office Realty Trust reported a net income of $8.7 million, or $0.07 per diluted share, for the quarter ended March 31, 2020. The company achieved Core Funds From Operations (Core FFO) of $0.47 per diluted share. They completed approximately 417,000 square feet of leasing and also completed the acquisition of the Dallas Galleria Office Towers.
Net income applicable to common stockholders of $8.7 million, or $0.07 per diluted share.
Core Funds From Operations (Core FFO) of $0.47 per diluted share.
Completed approximately 417,000 square feet of leasing, including approximately 120,000 square feet of new tenant leasing.
Completed the acquisition of the Dallas Galleria Office Towers for approximately $396 million.
Forward Guidance
Piedmont withdrew its guidance for 2020 due to the uncertainty of the COVID-19 pandemic. However, Piedmont anticipates that its overall leased percentage and expected 2020 financial performance will not be severely impacted by the pandemic.
Positive Outlook
- Piedmont has a strong, diversified tenant base, a majority of which is investment grade quality.
- The Company has a prudent balance sheet with excellent liquidity, including approximately $350 million available on its line of credit at March 31, 2020 and no debt maturities until late 2021.
- Approximately 96% of April’s rents have been collected and only a limited number of the remaining tenants that have yet to pay April’s rents are requesting deferral of second quarter rents.
- The Company has amended lease terms for tenants which will defer approximately $1 million of rents per month for an average of three months, or in total about one-half of a percent of annualized revenues.
- The duration of the effects of the pandemic are largely confined to the second quarter of the current calendar year.
Challenges Ahead
- New tenant leasing activity during April has slowed and the Company believes this trend will continue throughout the quarter, likely pushing all “new tenant” leasing goals out at least a quarter, which will modestly lower net operating income (“NOI”) for 2020 by approximately $1.5 million, and lower our originally anticipated year end leased percentage.
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