Piedmont REIT Signs over 461,000 SF of Leases during Third Quarter

Rhea-AI Summary

Piedmont Office Realty Trust (NYSE:PDM), a Class A office property owner primarily in the Sunbelt, reported 461,000 square feet of leasing in Q3 2024. This brings their year-to-date leasing to approximately two million square feet, increasing their in-service leased percentage to 88.8% as of September 30, 2024. About 45% of the Q3 leasing was for new tenants.

Rents on leases for space vacant less than a year increased by 4.0% on a cash basis and 8.5% on an accrual basis. The company has a contractual backlog of 1.5 million square feet, representing about $48 million in future annual cash flow. Their pipeline of leases in the proposal stage has grown to approximately three million square feet, indicating strong demand for their properties.

Positive

• 461,000 square feet of leasing completed in Q3 2024
• Year-to-date leasing reached approximately two million square feet
• In-service leased percentage increased to 88.8%
• 45% of Q3 leasing related to new tenants
• Rent increases of 4.0% (cash basis) and 8.5% (accrual basis) for spaces vacant less than a year
• 1.5 million square feet contractual backlog, representing $48 million in future annual cash flow
• Leasing pipeline grew to approximately three million square feet

Negative

• None.

News Market Reaction

+3.32%

1 alert

+3.32% News Effect

On the day this news was published, PDM gained 3.32%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

YTD Leasing of approximately Two Million SF lifts Portfolio to 88.8% Leased

Atlanta, Oct. 14, 2024 (GLOBE NEWSWIRE) -- Piedmont Office Realty Trust, Inc. ("Piedmont” or “the Company") (NYSE:PDM), an owner of Class A office properties located primarily in the Sunbelt, announced today, that the Company completed over 461,000 square feet of leasing during the third quarter of 2024, with approximately 45% of this total leased square footage related to new tenants and bringing its in-service leased percentage to 88.8% as of September 30, 2024. Rents on leases executed during the third quarter for space vacant one year or less increased approximately 4.0% and 8.5% on a cash and accrual basis, respectively.

Commenting on third quarter leasing results, Brent Smith, Piedmont's President and Chief Executive Officer, said, "The portfolio’s leasing momentum continued during the third quarter with the team executing over 461,000 square feet of total leasing, and bringing our total year-to-date leasing to approximately two million square feet. This quarter’s executed leases take our in-service leased percentage to 88.8% with limited expiries for the remainder of the year. Our contractual backlog stands at 1.5 million square feet of leased space yet to commence or begin paying cash rents, representing approximately $48 million of future annual cash flow. Additionally, our pipeline of leases currently in the proposal stage has increased to approximately three million square feet, further evidence that the investments that we have made in our portfolio, combined with a 'best-in-class' service and sustainability mindset, are resonating with existing and prospective tenants alike, and demonstrating the growing demand for highly-amenitized, well-located work environments operated by a financially stable landlord."

About Piedmont Office Realty Trust

Piedmont Office Realty Trust, Inc. (NYSE: PDM) is an owner, manager, developer, redeveloper, and operator of high-quality, Class A office properties located primarily in the Sunbelt. Its approximately $5 billion, predominantly unencumbered portfolio is currently comprised of approximately 16 million square feet with no corporate refinancing needs required until 2027. The Company is a fully integrated, self-managed real estate investment trust (REIT) with local management offices in each of its markets and is investment-grade rated by Moody’s (Baa3). Piedmont is a 2024 ENERGY STAR Partner of the Year – Sustained Excellence. For more information, see www.piedmontreit.com.

   Contact:        Sarah Heimlich
   Company:     Piedmont Office Realty Trust
   Phone:          770 418 8800
   Email:           Investor.relations@Piedmontreit.com

FAQ

What was Piedmont Office Realty Trust's (PDM) leasing activity in Q3 2024?

Piedmont Office Realty Trust completed over 461,000 square feet of leasing during the third quarter of 2024.

What is Piedmont's (PDM) year-to-date leasing total as of Q3 2024?

Piedmont's year-to-date leasing total reached approximately two million square feet as of Q3 2024.

What is Piedmont's (PDM) in-service leased percentage as of September 30, 2024?

Piedmont's in-service leased percentage increased to 88.8% as of September 30, 2024.

How much did rents increase for Piedmont (PDM) in Q3 2024?

Rents on leases for space vacant less than a year increased by 4.0% on a cash basis and 8.5% on an accrual basis.

What is the size of Piedmont's (PDM) leasing pipeline as of Q3 2024?

Piedmont's pipeline of leases in the proposal stage has grown to approximately three million square feet.