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Sep 30, 2020
Piedmont Q3 2020 Earnings Report
Piedmont reported results for the quarter ended September 30, 2020.
Key Takeaways
Piedmont Office Realty Trust reported a net income of $8.9 million, or $0.07 per diluted share, for Q3 2020. Core Funds From Operations were $0.48 per diluted share. The company completed 229,000 square feet of leasing and collected approximately 99% of billed tenant receivables.
Net income applicable to common stockholders was $8.9 million, or $0.07 per diluted share.
Core Funds From Operations was $0.48 per diluted share.
Completed approximately 229,000 square feet of leasing, excluding a 172,000 square foot back fill lease.
Collected approximately 99% of billed tenant receivables for the third quarter.
Forward Guidance
Piedmont is reinstating guidance for the year ending December 31, 2020, which represents an approximately 6% increase over 2019 results.
Positive Outlook
- Overall retail NOI is estimated to be lower by approximately $2 million for the year.
- Company has taken approximately $2.6 million in bad debt charges against rental revenue in recognition of an increase in collectibility risk.
- Reduced operating expenses (net of tenants' share) at the Company's buildings during 2020 are anticipated to be $3 to $4 million for the year.
- The Company anticipates $5 million lower interest expense for 2020 due to lower prevailing interest rates.
- The Company anticipates $1 to $2 million in lower general and administrative expenses for the year.
Challenges Ahead
- New tenant leasing for 2020 will be less than originally expected, modestly lowering 2020 net operating income (“NOI”) by approximately $5 million.
- Piedmont’s transient parking income is estimated to be lower by approximately $2 to $3 million for the year.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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