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Jun 30, 2024
Piedmont Q2 2024 Earnings Report
Piedmont reported a net loss for Q2 2024, but achieved its largest quarterly leasing volume in over a decade.
Key Takeaways
Piedmont Office Realty Trust reported a net loss of $9.8 million for the second quarter of 2024, compared to a net loss of $2.0 million in the same period last year. However, the company achieved its largest quarterly leasing volume in over a decade, completing over one million square feet of leasing, with a cash rental rate roll-up of greater than 15%.
Net loss of $9.8 million, or $0.08 per diluted share.
Core FFO was $0.37 per diluted share.
Same Store NOI increased 5.7% on a cash basis and 3.7% on an accrual basis.
Completed over one million square feet of leasing, the largest amount in a single quarter in over a decade.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The Company is narrowing its previous guidance for the year ending December 31, 2024 primarily to reflect the impact of its recent $400 million bond issuance.
Positive Outlook
- Executed leasing in the range of 2-2.3 million square feet
- Year-end leased percentage for the Company's in-service portfolio anticipated to be approximately 87.5-88.5%
- Same Store NOI raised from flat to 2% increase to a 2-3% increase on both a cash and accrual basis for the year
- Interest income to approximately $4 million due to temporarily investing a portion of the net proceeds from the Company's recent bond offering which it anticipates using to repay a $250 million term loan in March of 2025
- General and administrative expense adjusted to approximately $30 million based on mid-year estimates of potential performance based compensation as a result of year-to-date leasing results
Challenges Ahead
- Net loss between $(63) and $(60) million
- Interest expense of approximately $123-126 million, reflecting a full year of higher interest rates as a result of refinancing activity completed by the Company during the latter half of 2023 and in the first half of 2024.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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