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Dec 31, 2023
Piedmont Q4 2023 Earnings Report
Piedmont reported mixed results with a net loss but strong leasing activity.
Key Takeaways
Piedmont Office Realty Trust reported a net loss of $28.0 million for Q4 2023, compared to a net income of $75.6 million in Q4 2022. However, the company experienced strong leasing activity, completing approximately 816,000 square feet of leasing during the quarter.
Net loss of $28.0 million, or $0.23 per diluted share, compared to net income of $75.6 million, or $0.61 per diluted share, for the fourth quarter of 2022.
Core FFO per diluted share was $0.41, compared to $0.50 for the fourth quarter of 2022.
Completed approximately 816,000 square feet of leasing during the fourth quarter.
Leased percentage as of December 31, 2023 increased to 87.1%, up from 86.7% a year earlier.
Revenue by Segment
Forward Guidance
Piedmont introduced guidance for the year ending December 31, 2024, with a net loss between $47 million and $41 million, and Core FFO per diluted share between $1.46 and $1.56.
Positive Outlook
- Executed leasing activity in the range of 1.5 - 2 million square feet
- Year-end leased percentage for the Company's in-service portfolio anticipated to be approximately 87-88%, before the impacts of any acquisition or disposition activity
- Same Store NOI flat to 2% increase on both a cash and accrual basis
- General and administrative expense will remain relatively flat at approximately $29-30 million
- No speculative acquisitions, dispositions, or refinancings are included in the above guidance
Challenges Ahead
- Net loss between $(47) and $(41) million
- Company will experience some downtime between certain lease expirations and new lease commencements during 2024
- Interest expense of approximately $119-121 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 early 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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