[10-Q] Piedmont Realty Trust, Inc. Quarterly Earnings Report

Q: What was PDM’s Q3 2025 net loss and EPS?

Net loss was $13.5 million , or $0.11 per basic and diluted share.

Q: How did Piedmont Realty Trust’s revenue and NOI trend in Q3 2025?

Total revenues were $139.2 million and NOI was $83.3 million , modestly higher than a year ago for NOI.

Q: What is PDM’s current liquidity position?

The company reported $434 million available under its $600 million unsecured line of credit with no required debt maturities until 2028.

Q: What were key debt and interest rate actions in 2025?

PDM upsized its 2024 term loan to $325 million , extended its credit line to June 30, 2028 (with two one-year options), removed a SOFR credit spread adjustment (10 bps reduction), and repurchased $67.5 million of 2028 notes.

Q: What is PDM’s portfolio size and occupancy?

As of September 30, 2025, the portfolio included 29 in-service projects totaling approximately 14.9 million square feet , 89.2% leased.

Q: How much did PDM spend on capital expenditures year-to-date?

Capital expenditures were $115.8 million for the nine months ended September 30, 2025.

Q: Did PDM complete any asset sales in 2025?

Yes. Closed sales included 161 Corporate Center (proceeds $4.98 million ) and 80 and 90 Central (proceeds $25.69 million ), with recorded gains for the period.

Filing Impact

(Neutral)

Filing Sentiment

(Neutral)

Form Type

10-Q

Rhea-AI Filing Summary

Piedmont Realty Trust (PDM) reported Q3 2025 results showing stable revenue and higher non-cash costs. Total revenues were $139.2 million, essentially flat year over year, while net loss widened to $13.5 million, or $0.11 per share, largely due to higher depreciation from recent building improvements.

Property performance remained resilient: quarterly NOI was $83.3 million versus $81.2 million a year ago. The portfolio comprised 29 in-service projects totaling approximately 14.9 million square feet and was 89.2% leased as of September 30, 2025.

Capital and liquidity actions were notable. The company upsized its 2024 term loan to $325 million, extended its $600 million unsecured line of credit to June 30, 2028 with two one-year options, and removed a SOFR credit spread adjustment on two facilities, reducing all‑in rates by 10 bps. It repurchased $67.5 million of 2028 notes, recording a $7.5 million extinguishment loss. As of quarter end, $434 million remained available on the revolver and there are no required debt maturities until 2028. Year-to-date capital expenditures were $115.8 million, focused on renovations and tenant improvements.

Insights

Stable NOI and extended liquidity; GAAP loss driven by non-cash items.

Piedmont Realty Trust kept revenue steady in Q3 while NOI reached $83.3M. The widened net loss to $13.5M reflects higher depreciation as assets were placed in service, a typical dynamic for property-heavy businesses.

On balance sheet strategy, management upsized the 2024 term loan to $325M, extended the $600M line of credit, and trimmed SOFR pricing by 10 bps via credit spread adjustment removal. The repurchase of $67.5M 2028 notes produced a recognized loss but reduces future interest obligations.

Liquidity appears adequate with $434M revolver capacity and no required maturities until 2028. Actual outcomes depend on leasing trends—occupancy was 89.2%—and the pace of capital spending on redevelopment and tenant improvements disclosed for the year to date.

10/27/2025 - 04:18 PM

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________________________________

FORM 10-Q

_______________________________________________________________________________________

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT of 1934

For the Quarterly Period Ended September 30, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT of 1934

For the Transition Period From to

Commission file number 001-34626

Piedmont Realty Trust, Inc.

(Exact name of registrant as specified in its charter)

____________________________________________________


Maryland						58-2328421
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification Number)

5565 Glenridge Connector Ste. 450

Atlanta, Georgia 30342

(Address of principal executive offices) (Zip Code)

(770) 418-8800

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of exchange on which registered

Common Stock, $0.01 par value

PDM

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x

Number of shares outstanding of the Registrant’s

common stock, as of October 24, 2025:

124,519,278 shares

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FORM 10-Q

PIEDMONT REALTY TRUST, INC.

TABLE OF CONTENTS


			Page No.
PART I	Financial Information

	Item 1.	Consolidated Financial Statements	5

		Consolidated Balance Sheets—September 30, 2025 (Unaudited) and December 31, 2024	6

		Consolidated Statements of Operations (Unaudited) for the Three and Nine Months Ended September 30, 2025 and 2024	7

		Consolidated Statements of Comprehensive Loss (Unaudited) for the Three and Nine Months Ended September 30, 2025 and 2024	8

		Consolidated Statements of Stockholders' Equity (Unaudited) for the Three and Nine Months Ended September 30, 2025 and 2024	9

		Consolidated Statements of Cash Flows (Unaudited) for the Nine Months Ended September 30, 2025 and 2024	11

		Condensed Notes to Consolidated Financial Statements (Unaudited)	12

	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25

	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	38

	Item 4.	Controls and Procedures	39

PART II.	Other Information

	Item 1.	Legal Proceedings	40

	Item 1A.	Risk Factors	40

	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	40

	Item 3.	Defaults Upon Senior Securities	40

	Item 4.	Mine Safety Disclosures	40

	Item 5.	Other Information	40

	Item 6.	Exhibits	41

		Signatures	42

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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained in this Form 10-Q may constitute forward-looking statements within the meaning of the federal securities laws. In addition, Piedmont Realty Trust, Inc. ("Piedmont," "we," "our," or "us"), or our executive officers on our behalf, may from time to time make forward-looking statements in reports and other documents we file with the Securities and Exchange Commission or in connection with other written or oral statements made to the press, potential investors, or others. Statements regarding future events and developments and our future performance, as well as management’s expectations, beliefs, plans, estimates, or projections relating to the future, are forward-looking statements. Forward-looking statements include statements preceded by, followed by, or that include the words “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “continue,” or other similar words. Examples of such statements in this report include descriptions of our real estate, financing, and operating objectives; discussions regarding future dividends; and discussions regarding potential acquisition and disposition activity and the potential impact of economic conditions on our real estate and lease portfolio, among others.

These statements are based on beliefs and assumptions of our management, which in turn are based on information available at the time the statements are made. Important assumptions relating to the forward-looking statements include, among others, assumptions regarding the demand for office space in the markets in which we operate, competitive conditions, and general economic conditions. These assumptions could prove inaccurate. The forward-looking statements also involve certain known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in any forward-looking statement. Many of these factors are beyond our ability to control or predict. Such factors include, but are not limited to, the following:

•Economic, regulatory, socio-economic, technological (e.g. artificial intelligence and machine learning, virtual meeting platforms, etc.), and other changes that impact the real estate market generally, the office sector or the patterns of use of commercial office space in general, or the markets where we primarily operate or have high concentrations of revenue;

•Reduced demand for office space, including as a result of remote working and flexible or “hybrid” working arrangements that allow work from remote locations other than an employer’s office premises;

•The impact of competition on our efforts to renew existing leases or re-let space on terms similar to existing leases;

•Lease terminations, lease defaults, lease contractions, or changes in the financial condition of our tenants, particularly by one of our large tenants;

•Impairment charges on our long-lived assets or goodwill resulting therefrom;

•The success of our real estate strategies and investment objectives, including our ability to implement successful redevelopment and development strategies or identify and consummate suitable acquisitions and divestitures;

•The illiquidity of real estate investments, including economic changes, such as fluctuating interest rates, costs of construction, improvements and redevelopments, and available financing, which could impact the number of buyers/sellers of our target properties, and regulatory restrictions to which real estate investment trusts ("REITs") are subject and the resulting impediment on our ability to quickly respond to adverse changes in the performance of our properties;

•The risks and uncertainties associated with our acquisition and disposition of properties, many of which risks and uncertainties may not be known at the time of acquisition or disposition;

•Development and construction delays, including the potential of supply chain disruptions, and resultant increased costs and risks;

•Future acts of terrorism, civil unrest, or armed hostilities in any of the major metropolitan areas in which we own properties;

•Risks related to the occurrence of cybersecurity incidents, including cybersecurity incidents against us or any of our properties, vendors, or tenants, or a deficiency in our identification, assessment or management of cybersecurity threats impacting our operations and the public's reaction to reported cybersecurity incidents, including the reputational impact on our business and value of our common stock;

•Costs of complying with governmental laws, regulations and policies, including environmental standards imposed on office building owners;

•Uninsured losses or losses in excess of our insurance coverage, and our inability to obtain adequate insurance coverage at a reasonable cost;

•Additional risks and costs associated with directly managing properties occupied by government tenants, such as potential changes in the political environment, a reduction in federal or state funding of our governmental tenants, government layoffs or an increased risk of default by government tenants during periods in which state or federal governments are shut down or on furlough;

•Significant price and volume fluctuations in the public markets, including on the exchange on which we listed our common stock;

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•Risks associated with incurring mortgage and other indebtedness, including changing capital reserve requirements on our lenders and rising interest rates for new debt financings;

•A downgrade in our credit ratings, the credit ratings of Piedmont Operating Partnership, L.P. ("Piedmont OP") or the credit ratings of our or Piedmont OP's unsecured debt securities, which could, among other effects, trigger an increase in the stated rate of one or more of our unsecured debt instruments;

•The effect of future offerings of debt or equity securities on the value of our common stock;

•Additional risks and costs associated with adverse U.S. global and economic conditions, inflation and potential increases in the rate of inflation, including the impact of a possible recession, uncertainty and volatility in financial markets, and any changes in governmental rules, regulations, and fiscal policies;

•Uncertainties associated with environmental and regulatory matters;

•Changes in the financial condition of our tenants directly or indirectly resulting from geopolitical developments that could negatively affect important supply chains and international trade, the termination or threatened termination of existing international trade agreements, or the implementation of tariffs or retaliatory tariffs on imported or exported goods;

•The effect of any litigation to which we are, or may become, subject;

•Additional risks and costs associated with owning properties occupied by tenants in particular industries, such as oil and gas, hospitality, travel, co-working, etc., including risks of default during start-up and during economic downturns;

•Changes in tax laws impacting REITs and real estate in general, as well as our ability to continue to qualify as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”), or other tax law changes which may adversely affect our stockholders;

•The future effectiveness of our internal controls and procedures;

•Actual or threatened public health epidemics or outbreaks of highly infectious or contagious diseases, as well as immediate and long-term governmental and private measures taken to combat such health crises; and

•Other factors, including the risk factor described in Item 1A. Risk Factors of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, as well as the risk factors discussed under Item 1A. of our Annual Report on Form 10-K for the year ended December 31, 2024.

Management believes these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations. Further, forward-looking statements speak only as of the date they are made, and management undertakes no obligation to update publicly any of them in light of new information or future events.

Information Regarding Disclosures Presented

Annualized Lease Revenue ("ALR") is calculated by multiplying (i) current rental payments (defined as base rent plus operating expense reimbursements, if payable by the tenant on a monthly basis under the terms of a lease that has been executed, but excluding (a) rental abatements and (b) rental payments related to executed but not commenced leases for space that was covered by an existing lease), by (ii) 12. In instances in which contractual rents or operating expense reimbursements are collected on an annual, semi-annual, or quarterly basis, such amounts are multiplied by a factor of 1, 2, or 4, respectively, to calculate the annualized figure. For leases that have been executed but not commenced relating to unleased space, ALR is calculated by multiplying (i) the monthly base rental payment (excluding abatements) plus any operating expense reimbursements for the initial month of the lease term, by (ii) 12. Unless stated otherwise, this measure excludes revenues associated with development properties and properties taken out of service for redevelopment, if any.

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PART I. FINANCIAL INFORMATION

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS.

The information presented in the accompanying consolidated balance sheets and related consolidated statements of operations, comprehensive loss, stockholders’ equity, and cash flows reflects all adjustments that are, in management’s opinion, necessary for a fair and consistent presentation of financial position, results of operations, and cash flows in accordance with generally accepted accounting principles ("GAAP").

The accompanying financial statements should be read in conjunction with the notes to Piedmont’s financial statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in this report on Form 10-Q and with Piedmont’s Annual Report on Form 10-K for the year ended December 31, 2024. Piedmont’s results of operations for the nine months ended September 30, 2025 are not necessarily indicative of the operating results expected for the full year.

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PIEDMONT REALTY TRUST, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except for share and per share amounts)


	(Unaudited)
	September 30, 2025		December 31, 2024
Assets:
Real estate assets, at cost:
Land	$	545,102	$	552,744
Buildings and improvements, less accumulated depreciation of $1,238,031 and $1,150,892 as of September 30, 2025 and December 31, 2024, respectively	2,780,640		2,743,912
Intangible lease assets, less accumulated amortization of $71,501 and $75,982 as of September 30, 2025 and December 31, 2024, respectively	48,233		60,479
Construction in progress	57,283		104,104

Total real estate assets	3,431,258		3,461,239

Cash and cash equivalents	2,990		109,637
Tenant receivables	5,729		5,524
Straight-line rent receivables	211,591		193,783

Restricted cash and escrows	5,145		4,245
Prepaid expenses and other assets	27,598		25,792
Goodwill	53,491		53,491
Interest rate swaps	—		671
Deferred lease costs, less accumulated amortization of $207,671 and $204,150 as of September 30, 2025 and December 31, 2024, respectively	265,926		260,269

Total assets	$	4,003,728	$	4,114,651
Liabilities:
Unsecured debt, net of unamortized discount and debt issuance costs of $19,872 and $20,077 as of September 30, 2025 and December 31, 2024, respectively	$	2,003,588	$	2,029,923
Secured debt	189,736		192,423
Accounts payable, accrued expenses and accrued capital expenditures	135,220		149,048
Dividends payable	—		15,298
Deferred income	111,174		107,030
Intangible lease liabilities, less accumulated amortization of $33,104 and $33,641 as of September 30, 2025 and December 31, 2024, respectively	26,788		32,794
Interest rate swaps	175		8

Total liabilities	2,466,681		2,526,524
Commitments and Contingencies (Note 8)	—		—
Stockholders’ Equity:
Shares-in-trust, 150,000,000 shares authorized; none outstanding as of September 30, 2025 or December 31, 2024	—		—
Preferred stock, no par value, 100,000,000 shares authorized; none outstanding as of September 30, 2025 or December 31, 2024	—		—
Common stock, $0.01 par value, 750,000,000 shares authorized; 124,504,127 and 124,083,038 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively	1,245		1,241
Additional paid-in capital	3,727,914		3,723,680
Cumulative distributions in excess of earnings	(2,184,104)		(2,128,194)
Accumulated other comprehensive loss	(9,517)		(10,123)
Piedmont stockholders’ equity	1,535,538		1,586,604
Noncontrolling interest	1,509		1,523

Total stockholders’ equity	1,537,047		1,588,127
Total liabilities and stockholders’ equity	$	4,003,728	$	4,114,651

See accompanying notes

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PIEDMONT REALTY TRUST, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(in thousands, except for share and per share amounts)


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2025		2024		2025		2024
Revenues:


Rental and tenant reimbursement revenue	$	133,030	$	132,832	$	403,048	$	408,583
Property management fee revenue	115		896		277		1,535
Other property related income	6,018		5,565		18,816		16,975
	139,163		139,293		422,141		427,093
Expenses:
Property operating costs	55,890		57,510		169,414		175,519
Depreciation	42,127		39,000		123,666		116,683
Amortization	15,188		17,067		45,394		53,284
Impairment charges	—		—		—		18,432
General and administrative	7,607		6,809		23,130		22,773
	120,812		120,386		361,604		386,691

Other income (expense):
Interest expense	(31,968)		(32,072)		(95,599)		(91,355)
Other income	160		2,091		688		2,697



Loss on early extinguishment of debt	—		—		(8,000)		(386)
Gain/(loss) on sale of real estate assets	—		(445)		2,013		(445)
	(31,808)		(30,426)		(100,898)		(89,489)







Net loss	(13,457)		(11,519)		(40,361)		(49,087)
Net income applicable to noncontrolling interest	(5)		—		(13)		(4)
Net loss applicable to Piedmont	$	(13,462)	$	(11,519)	$	(40,374)	$	(49,091)




Per share information – basic and diluted:


Net loss applicable to common stockholders	$	(0.11)	$	(0.09)	$	(0.32)	$	(0.40)

Weighted-average common shares outstanding – basic and diluted	124,502,203		123,999,948		124,407,265		123,917,991

See accompanying notes

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PIEDMONT REALTY TRUST, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED)

(in thousands)


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2025			2024			2025			2024

Net loss applicable to Piedmont		$	(13,462)		$	(11,519)		$	(40,374)		$	(49,091)
Other comprehensive income/(loss):
Effective portion of gain/(loss) on derivative instruments that are designated and qualify as cash flow hedges (See Note 4)	90			(2,091)			269			1,168
Minus: Reclassification of net loss/(gain) included in net loss (See Note 4)	266			(1,043)			337			(3,064)

Other comprehensive income/(loss)		356			(3,134)			606			(1,896)
Comprehensive loss applicable to Piedmont		$	(13,106)		$	(14,653)		$	(39,768)		$	(50,987)

See accompanying notes

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PIEDMONT REALTY TRUST, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

(in thousands, except per share amounts)


	Common Stock			Additional Paid-In Capital		Cumulative Distributions in Excess of Earnings		Accumulated Other Comprehensive Income/(Loss)		Non- controlling Interest		Total Stockholders’ Equity
	Shares	Amount
Balance, June 30, 2025	124,492	$	1,245	$	3,725,769	$	(2,170,642)	$	(9,873)	$	1,511	$	1,548,010

Costs of issuance of common stock	—	—		(357)		—		—		—		(357)
Dividends to stockholders of subsidiaries	—	—		—		—		—		(7)		(7)
Shares issued and amortized under the 2007 Omnibus Incentive Plan, net of tax	12	—		2,502		—		—		—		2,502
Net income applicable to noncontrolling interest	—	—		—		—		—		5		5
Net loss applicable to Piedmont	—	—		—		(13,462)		—		—		(13,462)
Other comprehensive income	—	—		—		—		356		—		356
Balance, September 30, 2025	124,504	$	1,245	$	3,727,914	$	(2,184,104)	$	(9,517)	$	1,509	$	1,537,047

	Common Stock			Additional Paid-In Capital		Cumulative Distributions in Excess of Earnings		Accumulated Other Comprehensive Income/(Loss)		Non- controlling Interest		Total Stockholders’ Equity
	Shares	Amount
Balance, June 30, 2024	123,995	$	1,240	$	3,719,419	$	(2,055,697)	$	(8,180)	$	1,542	$	1,658,324


Dividends to common stockholders ($0.125 per share) and stockholders of subsidiaries	—	—		—		(15,500)		—		(7)		(15,507)
Shares issued and amortized under the 2007 Omnibus Incentive Plan, net of tax	5	—		2,004		—		—		—		2,004

Net loss applicable to Piedmont	—	—		—		(11,519)		—		—		(11,519)
Other comprehensive loss	—	—		—		—		(3,134)		—		(3,134)
Balance, September 30, 2024	124,000	$	1,240	$	3,721,423	$	(2,082,716)	$	(11,314)	$	1,535	$	1,630,168

See accompanying notes

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PIEDMONT REALTY TRUST, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

(in thousands, except per share amounts)


	Common Stock			Additional Paid-In Capital		Cumulative Distributions in Excess of Earnings		Accumulated Other Comprehensive Income/(Loss)		Non- controlling Interest		Total Stockholders’ Equity
	Shares	Amount
Balance, December 31, 2024	124,083	$	1,241	$	3,723,680	$	(2,128,194)	$	(10,123)	$	1,523	$	1,588,127

Costs of issuance of common stock	—	—		(526)		—		—		—		(526)
Dividends to common stockholders ($0.125 per share) and stockholders of subsidiaries	—	—		—		(15,536)		—		(27)		(15,563)
Shares issued and amortized under the 2007 Omnibus Incentive Plan, net of tax	421	4		4,760		—		—		—		4,764
Net income applicable to noncontrolling interest	—	—		—		—		—		13		13
Net loss applicable to Piedmont	—	—		—		(40,374)		—		—		(40,374)
Other comprehensive income	—	—		—		—		606		—		606
Balance, September 30, 2025	124,504	$	1,245	$	3,727,914	$	(2,184,104)	$	(9,517)	$	1,509	$	1,537,047


	Common Stock			Additional Paid-In Capital		Cumulative Distributions in Excess of Earnings		Accumulated Other Comprehensive Income/(Loss)		Non- controlling Interest		Total Stockholders’ Equity
	Shares	Amount
Balance, December 31, 2023	123,715	$	1,237	$	3,716,742	$	(1,987,147)	$	(9,418)	$	1,558	$	1,722,972

Costs of issuance of common stock	—	—		(89)		—		—		—		(89)
Dividends to common stockholders ($0.375 per share) and stockholders of subsidiaries	—	—		—		(46,478)		—		(27)		(46,505)
Shares issued and amortized under the 2007 Omnibus Incentive Plan, net of tax	285	3		4,770		—		—		—		4,773
Net income applicable to noncontrolling interest	—	—		—		—		—		4		4
Net loss applicable to Piedmont	—	—		—		(49,091)		—		—		(49,091)
Other comprehensive loss	—	—		—		—		(1,896)		—		(1,896)
Balance, September 30, 2024	124,000	$	1,240	$	3,721,423	$	(2,082,716)	$	(11,314)	$	1,535	$	1,630,168

See accompanying notes

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PIEDMONT REALTY TRUST, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(in thousands)


	Nine Months Ended
	September 30,
	2025		2024
Cash Flows from Operating Activities:
Net loss	$	(40,361)	$	(49,087)

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation	123,666		116,683
Amortization of debt issuance costs inclusive of settled interest rate swaps	6,034		4,858

Other amortization	42,661		49,006
Impairment charges	—		18,432
Loss on early extinguishment of debt	8,000		386

Stock compensation expense	7,229		6,267

(Gain)/loss on sale of real estate assets	(2,013)		445

Changes in assets and liabilities:
Increase in tenant and straight-line rent receivables	(20,437)		(9,385)

(Increase)/decrease in prepaid expenses and other assets	(3,068)		894

(Decrease)/increase in accounts payable and accrued expenses	(17,916)		1,621
Decrease in deferred income	(14,167)		(7,049)
Net cash provided by operating activities	89,628		133,071
Cash Flows from Investing Activities:

Capitalized expenditures	(115,813)		(139,986)




Net sales proceeds from wholly-owned properties	31,351		74,892



Deferred lease costs paid	(35,723)		(35,466)
Net cash used in investing activities	(120,185)		(100,560)
Cash Flows from Financing Activities:
Debt issuance and other costs paid	(376)		(2,225)
Proceeds from debt	553,087		918,972
Repayments of debt	(587,227)		(753,733)
Premiums paid to repurchase senior notes	(7,098)		—
Costs of issuance of common stock	(441)		(89)
Value of shares withheld for payment of taxes related to employee stock compensation	(2,274)		(1,027)


Dividends paid	(30,861)		(61,648)
Net cash (used in)/provided by financing activities	(75,190)		100,250
Net (decrease)/increase in cash, cash equivalents, and restricted cash and escrows	(105,747)		132,761
Cash, cash equivalents, and restricted cash and escrows, beginning of period	113,882		4,206
Cash, cash equivalents, and restricted cash and escrows, end of period	$	8,135	$	136,967

See accompanying notes

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PIEDMONT REALTY TRUST, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2025

(Unaudited)

1. Organization

Piedmont Realty Trust, Inc. (“Piedmont”) (NYSE: PDM) is a Maryland corporation that operates in a manner so as to qualify as a real estate investment trust (“REIT”) for federal income tax purposes and engages in the ownership, management, development, redevelopment, and operation of high-quality, Class A office properties located primarily in major U.S. Sunbelt markets. Piedmont was incorporated in 1997 and commenced operations in 1998. Piedmont conducts business through its wholly-owned subsidiary, Piedmont Operating Partnership, L.P. (“Piedmont OP”), a Delaware limited partnership. Piedmont OP owns properties directly, through wholly-owned subsidiaries, and through various joint ventures which it controls. References to Piedmont herein shall include Piedmont and all of its subsidiaries, including Piedmont OP and its subsidiaries and joint ventures.

As of September 30, 2025, Piedmont owned and operated a portfolio comprised of 29 in-service projects and three redevelopment projects. The in-service office projects total approximately 14.9 million square feet (unaudited) of primarily Class A office space and were 89.2% leased as of September 30, 2025.

2. Summary of Significant Accounting Policies

Basis of Presentation and Principles of Consolidation

The consolidated financial statements of Piedmont are prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”), including the instructions to Form 10-Q and Article 10 of Regulation S-X, and do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair presentation of the results for such periods. Results for these interim periods are not necessarily indicative of a full year’s results.

Piedmont’s consolidated financial statements include the accounts of Piedmont, Piedmont’s wholly-owned subsidiaries, any variable interest entity ("VIE") of which Piedmont or any of its wholly-owned subsidiaries is considered to have the power to direct the activities of the entity and the obligation to absorb losses/right to receive benefits, or any entity in which Piedmont or any of its wholly-owned subsidiaries owns a controlling interest. In determining whether Piedmont or Piedmont OP has a controlling interest, the following factors, among others, are considered: equity ownership, voting rights, protective rights of investors, and participatory rights of investors. For further information, refer to the financial statements and footnotes included in Piedmont’s Annual Report on Form 10-K for the year ended December 31, 2024.

All intercompany balances and transactions have been eliminated upon consolidation.

Further, Piedmont has formed special purpose entities to acquire and hold real estate. Each special purpose entity is a separate legal entity. Consequently, the assets of these special purpose entities are not available to all creditors of Piedmont. The assets owned by these special purpose entities are being reported on a consolidated basis with Piedmont’s assets for financial reporting purposes only.

Use of Estimates

The preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying consolidated financial statements and notes. The most significant of these estimates include the underlying cash flows and holding periods used in assessing impairment, judgments regarding the recoverability of goodwill, and the assessment of the collectability of receivables. While Piedmont has made, what it believes to be, appropriate accounting estimates based on the facts and circumstances available as of the reporting date, actual results could differ materially from those estimates.

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Income Taxes

Piedmont has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended, and has operated as such, beginning with its taxable year ended December 31, 1998. To qualify as a REIT, Piedmont must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of its annual REIT taxable income. As a REIT, Piedmont is generally not subject to federal income taxes, subject to fulfilling, among other things, its taxable income distribution requirement. Piedmont is subject to certain taxes related to the operations of projects in certain locations, as well as operations conducted by its taxable REIT subsidiary which have been provided for in the financial statements.

Operating Leases

Piedmont recognized the following fixed and variable lease payments, which together comprised rental and tenant reimbursement revenue in the accompanying consolidated statements of operations for the three and nine months ended September 30, 2025 and 2024, respectively, as follows (in thousands):


	Three Months Ended				Nine Months Ended
	September 30, 2025		September 30, 2024		September 30, 2025		September 30, 2024
Fixed payments	$	110,748	$	109,393	$	333,654	$	334,287
Variable payments	22,282		23,439		69,394		74,296
Total Rental and Tenant Reimbursement Revenue	$	133,030	$	132,832	$	403,048	$	408,583

Recent Accounting Pronouncements

Income Tax Disclosure

The Financial Accounting Standards Board (the "FASB") has issued ASU No. 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures ("ASU 2023-09"). ASU 2023-09 requires expanded disclosure of tax information, including a rate reconciliation and the amounts of annual income taxes paid (net of refunds received), segregated by federal, state, and local jurisdictions. The amendments of ASU 2023-09 also require disclosure of income from continuing operations before income tax separated by domestic and foreign income, and eliminate the requirement to disclose the nature and estimates of the range of reasonable possible changes to unrecognized tax benefits within the following twelve months of the reporting period end. ASU 2023-09 is effective for Piedmont beginning with the filing of the Form 10-K for the year ended December 31, 2025. Piedmont is currently evaluating the potential impact of adoption; however, Piedmont does not anticipate any material impact to its consolidated financial statements as a result of adoption of ASU 2023-09.

Income Statement Expense Disaggregation Disclosures

The FASB has also issued Accounting Standards Update ("ASU") No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses ("ASU 2024-03"). ASU 2024-03 aims to enhance the transparency and presentation of income statement expenses in response to increasing demand from investors and other stakeholders for greater clarity and comparability surrounding the nature and composition of an entity's expenses. The amendments of ASU 2024-03 require tabular disclosure of certain cost and expense information, such as employee compensation, in the footnotes to the financial statements. ASU 2024-03 is effective for Piedmont beginning with the Form 10-K for the year ended December 31, 2027, and subsequent interim periods beginning in calendar-year 2028. Piedmont is currently evaluating the potential impact of adoption; however, Piedmont does not anticipate any material impact to its consolidated financial statements as a result of adoption of ASU 2024-03.

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3. Debt

During the three months ended September 30, 2025, Piedmont, through Piedmont OP, amended its $600 Million Unsecured 2022 Line of Credit and its $325 Million Unsecured 2024 Term Loan to remove the credit spread adjustment from SOFR-based interest rates thereby reducing its all-in interest rates on each facility by 10 basis points.

During the nine months ended September 30, 2025, Piedmont repurchased approximately $67.5 million of the aggregate principal amount of its $600 Million Senior Unsecured Notes due 2028, resulting in the recognition of an approximately $7.5 million loss on early extinguishment of debt.

During the nine months ended September 30, 2025, Piedmont amended the $200 Million Unsecured 2024 Term Loan (as amended, the "$325 Million Unsecured 2024 Term Loan") to increase the principal amount of the loan by $125 million to a total of $325 million and to add two six-month extension options for a final maturity date of January 29, 2028, provided that Piedmont is not in default as of the extension date and upon payment of extension fees. The net proceeds from the $325 Million Unsecured 2024 Term Loan and Piedmont's $600 Million Unsecured 2022 Line of Credit, along with cash on hand, were used to repay the $250 Million Unsecured 2018 Term Loan that was scheduled to mature in March of 2025. In conjunction with this repayment, Piedmont recognized a loss of approximately $0.5 million as a result of expensing unamortized financing costs due to the early extinguishment of debt.

Finally, during the nine months ended September 30, 2025, Piedmont recast the $600 Million Unsecured 2022 Line of Credit to extend the maturity date to June 30, 2028, with two additional one-year extension options, for a final maturity date of June 30, 2030, provided that Piedmont is not in default as of the extension date and upon payment of extension fees.

The following table summarizes the terms of Piedmont’s consolidated indebtedness outstanding as of September 30, 2025 and December 31, 2024 (in thousands):


Facility (1)	Stated Rate			Effective Rate (2)			Maturity		Amount Outstanding as of
									September 30, 2025		December 31, 2024
Secured (Fixed)
$197 Million Fixed Rate Mortgage	4.10	%		4.10	%		10/1/2028		$	189,736	$	192,423











Unsecured (Variable and Fixed)










$250 Million Unsecured 2018 Term Loan	SOFR + 1.20%			4.79	%		3/31/2025		$	—	$	250,000
$600 Million Unsecured 2022 Line of Credit	SOFR + 1.05%		(3)	5.29	%	(4)	6/30/2028	(5)	166,000		—
$325 Million Unsecured 2024 Term Loan	SOFR + 1.30%		(3)	5.38	%	(6)	1/29/2027	(7)	325,000		200,000
$600 Million Unsecured Senior Notes due 2028	9.25	%		9.25	%		7/20/2028		532,460		600,000
$400 Million Unsecured Senior Notes due 2029	6.88	%		7.11	%		7/15/2029		400,000		400,000
$300 Million Unsecured Senior Notes due 2030	3.15	%		3.90	%		8/15/2030		300,000		300,000
$300 Million Unsecured Senior Notes due 2032	2.75	%		2.78	%		4/1/2032		300,000		300,000
Unamortized discounts and debt issuance costs									(19,872)		(20,077)
Subtotal/Weighted Average				6.13	%				$	2,003,588	$	2,029,923
Total/Weighted Average				5.95	%				$	2,193,324	$	2,222,346

(1)All of Piedmont’s outstanding debt as of September 30, 2025 is unsecured and interest-only until maturity, except for the $197 Million Fixed Rate Mortgage, which is secured by 1180 Peachtree Street.

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(2)Effective rate after consideration of settled or in-place interest rate swap agreements and issuance discounts.

(3)The all-in interest rates associated for the SOFR selections are comprised of the base SOFR interest rate and a stated interest rate spread that can vary from 0.72% to 1.40% on the $600 Million Unsecured 2022 Line of Credit and 0.85% to 1.70% on the $325 Million Unsecured 2024 Term Loan based upon the then current credit rating (as defined in the respective loan agreement) of Piedmont or Piedmont OP.

(4)On a periodic basis, Piedmont may select from multiple interest rate options, including the prime rate and various-length SOFR locks on all or a portion of the principal.

(5)Piedmont may extend the term of the $600 Million Unsecured 2022 Line of Credit for up to two additional years (through two available one-year extensions to a final extended maturity date of June 30, 2030); provided that Piedmont is not then in default and upon payment of extension fees.

(6)This term loan has a stated variable rate; however, Piedmont has entered into interest rate swap agreements that effectively fix the interest rate on the aggregate principal amount of the term loan to 5.38% through February 1, 2026, assuming no change in Piedmont's or Piedmont OP's credit rating. See Note 4 for disclosures of Piedmont's derivative instruments.

(7)Piedmont may extend the term for up to two six-month extension options for a final maturity date of January 29, 2028; provided that Piedmont is not then in default and upon payment of extension fees.

Piedmont made interest payments on all debt facilities, including interest rate swap cash settlements, of approximately $52.2 million and $42.5 million for the three months ended September 30, 2025 and 2024, respectively, and approximately $121.1 million and $105.2 million for the nine months ended September 30, 2025 and 2024, respectively. Also, Piedmont capitalized interest of approximately $2.9 million and $3.4 million for the three months ended September 30, 2025 and 2024, respectively, and approximately $9.3 million and $9.2 million for the nine months ended September 30, 2025 and 2024, respectively. As of September 30, 2025, Piedmont believes it was in compliance with all financial covenants associated with its debt instruments.

See Note 5 for a description of Piedmont’s estimated fair value of debt as of September 30, 2025.

4. Derivative Instruments

Risk Management Objective of Using Derivatives

In addition to operational risks which arise in the normal course of business, Piedmont is exposed to economic risks such as interest rate, liquidity, and credit risk. In certain situations, Piedmont has entered into derivative financial instruments, specifically interest rate swap agreements, to manage interest rate risk exposure arising from current or future variable rate debt transactions. Interest rate swap agreements involve the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Piedmont’s objective in using interest rate derivatives is to add stability to interest expense and to manage its exposure to interest rate movements.

Cash Flow Hedges of Interest Rate Risk

Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for Piedmont making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

During the nine months ended September 30, 2025, Piedmont terminated eight interest rate swap agreements associated with the $250 Million Unsecured 2018 Term Loan in conjunction with paying off the loan. Additionally, Piedmont entered into one new interest rate swap agreement to fully hedge the risk of changes in the interest-related cash flows associated with the additional $125 million of principal resulting from the upsized $325 Million Unsecured 2024 Term Loan (see Note 3 above) through February 1, 2026. All of Piedmont's interest rate swap agreements are designated as effective cash flow hedges and are designated using SOFR. The maximum length of time over which Piedmont is hedging its exposure to the variability in future cash flows for forecasted transactions is 4 months.

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A detail of Piedmont’s interest rate derivatives outstanding as of September 30, 2025 is as follows:

Interest Rate Derivatives:

Number of Swap Agreements

Associated Debt Instrument

Total Notional Amount
(in millions)

Effective Date

Maturity Date

Interest rate swaps

$325 Million Unsecured 2024 Term Loan

2/1/2024

2/1/2026

Interest rate swaps

$325 Million Unsecured 2024 Term Loan

120

9/3/2024

2/1/2026

Interest rate swaps

$325 Million Unsecured 2024 Term Loan

125

2/19/2025

2/1/2026

Total

325

Piedmont presents its interest rate derivatives on its consolidated balance sheets on a gross basis as interest rate swap assets and interest rate swap liabilities. A detail of Piedmont’s interest rate derivatives on a gross and net basis as of September 30, 2025 and December 31, 2024, respectively, is as follows (in thousands):


Interest rate swaps classified as:	September 30, 2025		December 31, 2024
Gross derivative assets	$	—	$	671
Gross derivative liabilities	(175)		(8)
Net derivative asset/(liability)	$	(175)	$	663

The gain/(loss) on Piedmont's interest rate derivatives, including previously settled forward swaps, that was recorded in OCI and the accompanying consolidated statements of operations as a component of interest expense for the three and nine months ended September 30, 2025 and 2024, respectively, is as follows (in thousands):


	Three Months Ended				Nine Months Ended
Interest Rate Swaps in Cash Flow Hedging Relationships	September 30, 2025		September 30, 2024		September 30, 2025		September 30, 2024
Amount of gain/(loss) recognized in OCI	$	90	$	(2,091)	$	269	$	1,168
Amount of previously recorded gain/(loss) reclassified from OCI into interest expense	$	(266)	$	1,043	$	(337)	$	3,064


Total amount of interest expense presented in the consolidated statements of operations	$	(31,968)	$	(32,072)	$	(95,599)	$	(91,355)
Total amount of loss on early extinguishment of debt presented in the consolidated statements of operations	$	—	$	—	$	(8,000)	$	(386)

Piedmont estimates that approximately $2.3 million will be reclassified from OCI as an increase to interest expense over the next twelve months. Additionally, see Note 5 for fair value disclosures of Piedmont's derivative instruments.

Credit-risk-related Contingent Features

Piedmont has agreements with its derivative counterparties that contain a provision whereby if Piedmont defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then Piedmont could also be declared in default on its derivative obligations. If Piedmont were to breach any of the contractual provisions of the derivative contracts, it could be required to settle its liability obligations under the agreements at their termination value of the estimated fair values plus accrued interest, or approximately $175,000 as of September 30, 2025. Additionally, Piedmont has rights of set-off under certain of its derivative agreements related to potential termination fees and amounts payable under the agreements, if a termination were to occur.

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5. Fair Value Measurement of Financial Instruments

Piedmont considers its cash and cash equivalents, tenant receivables, restricted cash and escrows, accounts payable and accrued expenses, interest rate swap agreements, and debt to meet the definition of financial instruments. The following table sets forth the carrying and estimated fair value for each of Piedmont’s financial instruments, as well as its level within the GAAP fair value hierarchy, as of September 30, 2025 and December 31, 2024, respectively (in thousands):


	September 30, 2025					December 31, 2024
Financial Instrument	Carrying Value		Estimated Fair Value		Level Within Fair Value Hierarchy	Carrying Value		Estimated Fair Value		Level Within Fair Value Hierarchy
Assets:
Cash and cash equivalents (1)	$	2,990	$	2,990	Level 1	$	109,637	$	109,637	Level 1
Tenant receivables, net (1)	$	5,729	$	5,729	Level 1	$	5,524	$	5,524	Level 1

Restricted cash and escrows (1)	$	5,145	$	5,145	Level 1	$	4,245	$	4,245	Level 1
Interest rate swaps	$	—	$	—	Level 2	$	671	$	671	Level 2
Liabilities:
Accounts payable and accrued expenses (1)	$	15,874	$	15,874	Level 1	$	51,035	$	51,035	Level 1
Interest rate swaps	$	175	$	175	Level 2	$	8	$	8	Level 2
Debt, net	$	2,193,324	$	2,235,324	Level 2	$	2,222,346	$	2,238,531	Level 2

(1)For the periods presented, the carrying value of these financial instruments approximates estimated fair value due to their short-term maturity.

Piedmont's debt was carried at book value as of September 30, 2025 and December 31, 2024; however, Piedmont's estimate of its fair value is disclosed in the table above. Piedmont uses widely accepted valuation techniques including discounted cash flow analysis based on the contractual terms of the debt facilities, including the period to maturity of each instrument, and uses observable market-based inputs for similar debt facilities which have transacted recently in the market. Therefore, the estimated fair values determined are considered to be based on significant other observable inputs (Level 2). Scaling adjustments are made to these inputs to make them applicable to the remaining life of Piedmont's outstanding debt. Piedmont has not changed its valuation technique for estimating the fair value of its debt.

Piedmont’s interest rate swap agreements presented above, and as further discussed in Note 4, are classified as “Interest rate swaps” in the accompanying consolidated balance sheets and were carried at estimated fair value as of September 30, 2025 and December 31, 2024. The valuation of these derivative instruments was determined using widely accepted valuation techniques including discounted cash flow analysis based on the contractual terms of the derivatives, including the period to maturity of each instrument, and uses observable market-based inputs, including interest rate curves and implied volatilities. Therefore, the estimated fair values determined are considered to be based on significant other observable inputs (Level 2). In addition, Piedmont considered both its own and the respective counterparties’ risk of nonperformance in determining the estimated fair value of its derivative financial instruments by estimating the current and potential future exposure under the derivative financial instruments as of the valuation date. The credit risk of Piedmont and its counterparties was factored into the calculation of the estimated fair value of the interest rate swaps; however, as of September 30, 2025 and December 31, 2024, this credit valuation adjustment did not comprise a material portion of the estimated fair value. Therefore, Piedmont believes that any unobservable inputs used to determine the estimated fair values of its derivative financial instruments are not significant to the fair value measurements in their entirety, and does not consider any of its derivatives to be Level 3 financial instruments.

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6. Impairment Charges

During the nine months ended September 30, 2024, management shortened the intended hold period for the 750 West John Carpenter Freeway building located in Irving, Texas (part of the Dallas reportable segment), and in doing so, determined that the carrying value would not be recovered from the undiscounted future operating cash flows associated with the asset and its eventual disposition. As a result, Piedmont recognized an impairment charge of approximately $17.5 million calculated based on the difference between the carrying value of the asset and the estimated fair value. The estimated fair value was determined based on a negotiated potential selling price with an unrelated, third-party. On July 23, 2024, Piedmont completed the sale of the 750 West John Carpenter Freeway building.

Additionally, during the nine months ended September 30, 2024, Piedmont recognized an impairment charge of approximately $0.9 million in conjunction with the sale of One Lincoln Park located in Dallas, Texas (part of the Dallas reportable segment). The offer to purchase, contractual negotiations, due diligence, and completion of the sale all occurred during the nine months ended September 30, 2024.

7. Goodwill

The carrying amount of Piedmont’s goodwill allocated to each of its reportable segments in total and net of accumulated impairment charges, as of September 30, 2025 and December 31, 2024 is as follows (in thousands):


	Atlanta		Dallas		Orlando		Northern Virginia/ Washington, D.C.		Minneapolis		New York		Boston		Total












Balance as of December 31, 2024:
Goodwill	$	18,563	$	18,525	$	10,818	$	15,981	$	10,957	$	10,585	$	13,489	$	98,918
Accumulated impairment charges	—		—		—		(15,981)		(10,957)		(5,000)		(13,489)		(45,427)
	$	18,563	$	18,525	$	10,818	$	—	$	—	$	5,585	$	—	$	53,491

2025 impairment charges	—		—		—		—		—		—		—		—
Balance as of September 30, 2025:
Goodwill	$	18,563	$	18,525	$	10,818	$	15,981	$	10,957	$	10,585	$	13,489	$	98,918
Accumulated impairment charges	—		—		—		(15,981)		(10,957)		(5,000)		(13,489)		(45,427)
	$	18,563	$	18,525	$	10,818	$	—	$	—	$	5,585	$	—	$	53,491

8. Commitments and Contingencies

Commitments Under Existing Lease Agreements

As a recurring part of its business, Piedmont is typically required under its executed lease agreements to fund tenant improvements, leasing commissions, and building improvements. In addition, certain agreements contain provisions that require Piedmont to issue corporate or property guarantees to provide funding for capital improvements or other financial obligations. As of September 30, 2025, Piedmont had one individually significant tenant allowance commitment greater than $10 million. These commitments will be capitalized as the related expenditures are incurred.

Contingencies Related to Tenant Audits/Disputes

Certain lease agreements include provisions that grant tenants the right to engage independent auditors to audit their annual operating expense reconciliations. Such audits may result in different interpretations of language in the lease agreements from that made by Piedmont, which could result in requests for refunds of previously recognized tenant reimbursement revenues, resulting in financial loss to Piedmont. There were no such reductions during the three and nine months ended September 30, 2025 or 2024.

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9. Property Dispositions

The following properties were sold during the nine months ended September 30, 2025 and 2024 (in thousands):


Properties Sold	Location / Reportable Segment	Date of Sale	Gain/(Loss) on Sale of Real Estate Assets		Net Sales Proceeds































One Lincoln Park	Dallas, Texas / Dallas	March 20, 2024	$	—	$	53,308
750 West John Carpenter Freeway	Irving, Texas / Dallas	July 23, 2024	$	(445)	$	21,584
161 Corporate Center	Irving, Texas / Dallas	February 18, 2025	$	108	$	4,980
80 and 90 Central	Boxborough, Massachusetts / Boston	May 30, 2025	$	1,224	$	25,690

Piedmont recognized a gain on sale of real estate assets of $0.7 million during the nine months ended September 30, 2025 related to the return of amounts held in escrow for the 750 West John Carpenter building sold in July 2024.

10. Stock Based Compensation

Annually, the Compensation Committee of Piedmont's Board of Directors has granted deferred stock award units to certain employees at its discretion. Employee awards typically vest ratably over four years. In addition, Piedmont's independent directors receive an annual grant of deferred stock award units for services rendered and such awards vest over a one-year service period.

Certain management employees' long-term equity incentive program is allocated between the deferred stock award units described above and a multi-year performance share program whereby actual awards are contingent upon Piedmont's total stockholder return ("TSR") performance relative to the TSR of a peer group of office REITs. The target incentives for these employees, as well as the peer group to be used for comparative purposes, are predetermined by the board of directors, based on advice given by a third-party compensation consultant. The number of shares earned, if any, are determined at the end of the multi-year performance period (or upon termination) and vest immediately. In the event that a participant's employment is terminated prior to the end of the multi-year period, in certain circumstances the participant may be entitled to a pro-rated award based on Piedmont's TSR relative performance as of the termination date. The grant date fair value of the multi-year performance share awards is estimated using the Monte Carlo valuation method and is recognized ratably over the performance period.

A roll forward of Piedmont's equity based award activity for the nine months ended September 30, 2025 is as follows:


	Shares	Weighted-Average Grant Date Fair Value
Unvested and Potential Stock Awards as of December 31, 2024	3,018,435	$	9.20
Deferred Stock Awards Granted	560,810	$	8.15
Performance Stock Awards Granted	509,686	$	10.05
Change in Estimated Potential Share Awards based on TSR Performance	300,135	$	9.82
Performance Stock Awards Vested	(269,079)	$	13.56
Deferred Stock Awards Vested	(439,010)	$	9.01
Deferred Stock Awards Forfeited	(5,314)	$	8.33
Unvested and Potential Stock Awards as of September 30, 2025	3,675,663	$	8.91

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The following table provides additional information regarding stock award activity during the three and nine months ended September 30, 2025 and 2024, respectively (in thousands, except per share amounts):


	Three Months Ended				Nine Months Ended
	September 30, 2025		September 30, 2024		September 30, 2025		September 30, 2024
Weighted-Average Grant Date Fair Value per share of Deferred Stock Granted During the Period	$	—	$	—	$	8.15	$	6.60
Total Grant Date Fair Value of Deferred Stock Vested During the Period	$	126	$	200	$	3,954	$	4,801

A detail of Piedmont’s outstanding stock awards and programs as of September 30, 2025 is as follows:


Date of grant	Type of Award	Net Shares Granted (1)	Grant Date Fair Value		Vesting Schedule	Unvested Shares

































February 13, 2023	Deferred Stock Award	293,316	$	10.55	Of the shares granted, 25% vested on the date of grant, and 25% vested or will vest on February 13, 2024, 2025, and 2026, respectively.	84,207

February 23, 2023	2023-2025 Performance Share Program	—	$	12.37	Shares awarded, if any, will vest immediately upon determination of award in 2026.	271,680	(2)

February 23, 2023	Deferred Stock Award	315,943	$	9.47	Of the shares granted, 25% will vest on February 23, 2024, 2025, 2026, and 2027, respectively.	162,260


February 20, 2024	2024-2026 Performance Share Program	—	$	7.64	Shares awarded, if any, will vest immediately upon determination of award in 2027.	1,035,878	(2)

February 20, 2024	Deferred Stock Award	466,249	$	6.55	Of the shares granted, 25% will vest on February 20, 2025, 2026, 2027, and 2028, respectively.	352,990


October 1, 2024	Deferred Stock Award	60,606	$	9.90	Of the shares granted, 25% will vest on October 1, 2025, 2026, 2027, and 2028 respectively.	60,606

October 28, 2024	Deferred Stock Award	322,101	$	10.09	Of the shares granted, 100% will vest on October 28, 2029.	322,101

February 3, 2025	Deferred Stock Award	429,334	$	8.52	Of the shares granted, 25% will vest on February 3, 2026, 2027, 2028, and 2029, respectively.	424,508

February 3, 2025	2025-2027 Performance Share Program	—	$	10.05	Shares awarded, if any, will vest immediately upon determination of award in 2028.	839,697	(2)

May 15, 2025	Deferred Stock Award-Board of Directors	121,736	$	6.90	Of the shares granted, 100% will vest on the earlier of the 2026 Annual Meeting or May 15, 2026.	121,736
Total						3,675,663

(1)Amounts reflect the total original grant to employees and independent directors, net of shares surrendered upon vesting to satisfy required minimum tax withholding obligations through September 30, 2025.

(2)Estimated based on Piedmont's cumulative TSR for the respective performance period through September 30, 2025. Share estimates are subject to change in future periods based upon Piedmont's relative TSR performance compared to its peer group of office REITs.

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During the three months ended September 30, 2025 and 2024, Piedmont recognized approximately $2.6 million and $2.2 million, respectively, of compensation expense related to the amortization of unvested and potential stock awards. During the nine months ended September 30, 2025 and 2024, Piedmont recognized approximately $7.2 million and $6.3 million, respectively, of compensation expense related to the amortization of unvested and potential stock awards. During the nine months ended September 30, 2025, 421,089 shares (net of shares surrendered upon vesting to satisfy required minimum tax withholding obligations) were issued to employees. As of September 30, 2025, approximately $16.0 million of unrecognized compensation cost related to unvested and potential stock awards remained, which Piedmont will record in its consolidated statements of operations over a weighted-average vesting period of approximately two years.

11. Supplemental Disclosures for the Statement of Consolidated Cash Flows

Certain non-cash investing and financing activities for the nine months ended September 30, 2025 and 2024 (in thousands) are outlined below:


	Nine Months Ended
	September 30, 2025		September 30, 2024
Tenant improvements funded by tenants	$	18,552	$	16,896
Accrued capital expenditures and deferred lease costs	$	28,790	$	42,434
Change in accrued dividends	$	(15,298)	$	(15,143)


Change in accrued deferred financing costs	$	—	$	(232)
Accrued stock issuance costs	$	(85)	$	—

The following table provides a reconciliation of cash, cash equivalents, and restricted cash and escrows as presented in the accompanying consolidated statements of cash flows for the nine months ended September 30, 2025 and 2024, to the consolidated balance sheets for the respective period (in thousands):


	2025		2024
Cash and cash equivalents, beginning of period	$	109,637	$	825
Restricted cash and escrows, beginning of period	4,245		3,381


Total cash, cash equivalents, and restricted cash and escrows as presented in the accompanying consolidated statement of cash flows, beginning of period	$	113,882	$	4,206

Cash and cash equivalents, end of period	$	2,990	$	133,624
Restricted cash and escrows, end of period	5,145		3,343


Total cash, cash equivalents, and restricted cash and escrows as presented in the accompanying consolidated statement of cash flows, end of period	$	8,135	$	136,967

Amounts in restricted cash and escrows typically represent: escrow accounts required for future property repairs; escrow accounts for the payment of real estate taxes as required under certain of Piedmont's debt agreements; earnest money deposited by a buyer to secure the purchase of one of Piedmont's properties; or security or utility deposits held for tenants as a condition of their lease agreement.

12. Earnings Per Share

As Piedmont recognized a net loss for both the three and nine months ended September 30, 2025 and 2024, earnings per share is computed using basic weighted-average common shares outstanding.

13. Segment Information

Piedmont's President and Chief Executive Officer has been identified as Piedmont's CODM, as defined by GAAP. The CODM evaluates Piedmont's portfolio and assesses the ongoing operations and performance of its projects utilizing the following geographic segments: Atlanta, Dallas, Orlando, Northern Virginia/Washington, D.C., Minneapolis, New York, and Boston. These operating segments are also Piedmont’s reportable segments. As of September 30, 2025, Piedmont also owned two projects in Houston that do not meet the definition of an operating or reportable segment as the CODM does not regularly

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review these projects for purposes of allocating resources or assessing performance. Further, Piedmont does not maintain a significant presence nor anticipate further investment in this market. These two projects are the primary contributors to accrual-based net operating income ("NOI") included in "Other" below. During the periods presented, there have been no material inter-segment transactions. The accounting policies of the reportable segments are the same as Piedmont's accounting policies.

NOI by geographic segment is the primary performance measure reviewed by Piedmont's CODM to assess operating performance and consists only of revenues and expenses directly related to real estate rental operations. NOI is calculated by deducting property operating costs and other segment items from lease revenues and other property related income. Other segment items consist primarily of allocated costs and salaries, which are recognized at the respective properties and eliminated in the preparation of consolidated financial statements. NOI reflects property acquisitions and dispositions, occupancy levels, rental rate increases or decreases, and the recoverability of operating expenses. Piedmont's calculation of NOI may not be directly comparable to similarly titled measures calculated by other REITs.

Asset value information and capital expenditures by segment are not reported because the CODM does not use these measures to assess performance.

The following table presents accrual-based revenues, expenses, and other segment items included in NOI by geographic reportable segment for the three months ended September 30, 2025 and 2024 (in thousands):


	Three Months Ended September 30, 2025
	Total Revenues		Property Operating Costs		Other Segment Items		NOI
Atlanta	$	44,979	$	16,437	$	493	$	29,035
Dallas	24,951		9,443		112		15,620
Orlando	15,831		6,671		50		9,210
Northern Virginia/Washington, D.C.	12,538		6,024		165		6,679
Minneapolis	11,626		5,829		168		5,965
New York	14,605		6,801		21		7,825
Boston	9,527		3,624		11		5,914
Total reportable segments	134,057		54,829		1,020		80,248
Other	5,106		1,061		(1,026)		3,019
Totals	$	139,163	$	55,890	$	(6)	$	83,267


	Three Months Ended September 30, 2024
	Total Revenues		Property Operating Costs		Other Segment Items		NOI
Atlanta	$	41,491	$	14,257	$	427	$	27,661
Dallas	26,135		10,868		99		15,366
Orlando	14,302		6,891		45		7,456
Northern Virginia/Washington, D.C.	14,313		6,457		165		8,021
Minneapolis	11,532		6,541		158		5,149
New York	14,040		6,627		20		7,433
Boston	11,607		4,593		10		7,024
Total reportable segments	133,420		56,234		924		78,110
Other	5,873		1,276		(1,530)		3,067
Totals	$	139,293	$	57,510	$	(606)	$	81,177

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The following table presents accrual-based revenues, property operating costs, and other segment items included in NOI by geographic reportable segment for the nine months ended September 30, 2025 and 2024 (in thousands):


	Nine Months Ended September 30, 2025
	Total Revenues		Property Operating Costs		Other Segment Items		NOI
Atlanta	$	134,259	$	48,645	$	1,463	$	87,077
Dallas	78,223		31,402		331		47,152
Orlando	46,563		20,026		149		26,686
Northern Virginia/Washington, D.C.	38,807		17,931		495		21,371
Minneapolis	33,832		16,229		492		18,095
New York	43,817		20,319		61		23,559
Boston	31,644		12,041		35		19,638
Total reportable segments	407,145		166,593		3,026		243,578
Other	14,996		2,821		(2,955)		9,220
Totals	$	422,141	$	169,414	$	71	$	252,798


	Nine Months Ended September 30, 2024
	Total Revenues		Property Operating Costs		Other Segment Items		NOI
Atlanta	$	126,601	$	46,353	$	1,315	$	81,563
Dallas	81,658		34,568		321		47,411
Orlando	44,657		20,238		106		24,525
Northern Virginia/Washington, D.C.	45,036		18,828		492		26,700
Minneapolis	37,173		19,983		471		17,661
New York	41,350		18,983		60		22,427
Boston	34,045		12,724		31		21,352
Total reportable segments	410,520		171,677		2,796		241,639
Other	16,573		3,842		(3,437)		9,294
Totals	$	427,093	$	175,519	$	(641)	$	250,933

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A reconciliation of Net loss applicable to Piedmont to NOI is presented below (in thousands):


	Three Months Ended				Nine Months Ended
	September 30, 2025		September 30, 2024		September 30, 2025		September 30, 2024
Net loss applicable to Piedmont	$	(13,462)	$	(11,519)	$	(40,374)	$	(49,091)
Management fee revenue (1)	(114)		(714)		(254)		(965)



Depreciation and amortization	57,315		56,067		169,061		169,968
Impairment charges	—		—		—		18,432


General and administrative expenses	7,607		6,809		23,130		22,773
Interest expense	31,968		32,072		95,599		91,355
Other income	(52)		(1,983)		(364)		(2,374)
Loss on early extinguishment of debt	—		—		8,000		386
(Gain)/loss on sale of real estate assets	—		445		(2,013)		445
Net income applicable to noncontrolling interest	5		—		13		4
Total NOI	$	83,267	$	81,177	$	252,798	$	250,933

(1)Presented net of related operating expenses incurred to earn such management fee revenue. Such operating expenses are a component of property operating costs in the accompanying consolidated statements of operations.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis should be read in conjunction with the accompanying consolidated financial statements and notes thereto of Piedmont Realty Trust, Inc. (“Piedmont,” "we," "our," or "us"). See also “Cautionary Note Regarding Forward-Looking Statements” preceding Part I, as well as the consolidated financial statements and accompanying notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2024.

Liquidity and Capital Resources

We intend to use cash on hand, cash flows generated from the operation of our properties, net proceeds from the disposition of select properties, and borrowings under our $600 Million Unsecured 2022 Line of Credit as our primary sources of immediate liquidity. As of September 30, 2025, we had $434 million of borrowing capacity available under our $600 Million Unsecured 2022 Line of Credit and no required debt maturities until 2028. Consequently, we believe that we have sufficient liquidity to meet our obligations for the foreseeable future; however, as part of our overall debt management strategy, we may seek other new secured or unsecured borrowings from third party lenders or issue other debt or equity securities as additional sources of capital. The nature and timing of these additional sources of capital will be highly dependent on market conditions.

Our most consistent use of capital has historically been, and we believe will continue to be, to fund capital expenditures for our existing portfolio of projects. During the nine months ended September 30, 2025 and 2024 we incurred the following types of capital expenditures (in thousands):


	Nine Months Ended
	September 30, 2025		September 30, 2024

Capital expenditures for redevelopment/renovations	$	48,805	$	62,919

Other capital expenditures, including building and tenant improvements	67,008		77,067
Total capital expenditures (1)	$	115,813	$	139,986

(1)Of the total amounts paid, approximately $14.6 million and $13.4 million relates to soft costs such as capitalized interest, payroll, and other property operating costs for the nine months ended September 30, 2025 and 2024, respectively.

Capital expenditures for redevelopment/renovations noted above during both the nine months ended September 30, 2025 and 2024 related to building upgrades, primarily to the lobbies and the addition of tenant amenities at certain of our buildings and assets under redevelopment, including: US Bancorp Center in Minneapolis, Minnesota; Galleria Towers in Dallas, Texas; The Exchange in Orlando, Florida; Galleria on the Park in Atlanta, Georgia, 60 Broad in New York, New York, and Meridian in suburban Minneapolis, Minnesota, among others.

Other capital expenditures, including building and tenant improvements noted above includes all other capital expenditures during the period and are typically comprised of tenant and building improvements necessary to lease, maintain, or provide enhancements, including energy efficient equipment, to our existing portfolio of office projects.

Given that our operating model frequently results in leases for multiple blocks of space to credit-worthy tenants, our leasing success can result in capital outlays which vary from one reporting period to another based upon the specific leases executed. For leases executed during the nine months ended September 30, 2025, we committed to spend approximately $6.73 per square foot per year of lease term for tenant improvement allowances and lease commissions (net of expired lease commitments) as compared to $5.71 (net of expired lease commitments) for the nine months ended September 30, 2024 with the increase in the current period attributable to the significant amount of new tenant leasing completed. As of September 30, 2025, we had one individually significant unrecorded tenant allowance commitment greater than $10 million.

In addition to the amounts that we have already committed to as a part of executed leases, we also anticipate continuing to incur similar market-based tenant improvement allowances and leasing commissions in conjunction with procuring future leases for our existing portfolio of projects. Both the timing and magnitude of expenditures related to future leasing activity can vary due to a number of factors and are highly dependent on the size of the leased square footage, length of the lease term, and the competitive market conditions of the particular office market at the time a lease is being negotiated, in addition to the impact of inflation and rising costs of construction.

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Although reducing outstanding debt remains our priority, subject to the identification and availability of suitable investment opportunities and our ability to consummate such acquisitions on satisfactory terms, acquiring new assets consistent with our investment strategy could also be a significant use of capital. Additionally, we may use capital to repay debt when we deem it prudent to refinance or reduce various obligations.

Finally, we may also use capital resources to pay dividends to our stockholders. The amount and form of payment (cash or stock issuance), if any, of future dividends to be paid to our stockholders will continue to be largely dependent upon (i) the amount of cash generated from our operating activities; (ii) our expectations of future cash flows; (iii) our determination of near-term cash needs for debt repayments, development projects, and selective acquisitions of new properties; (iv) the timing of significant expenditures for tenant improvements, leasing commissions, building redevelopment projects, and general property capital improvements; (v) long-term dividend payout ratios for comparable companies; (vi) our ability to continue to access additional sources of capital, including potential sales of our properties; (vii) our desire to reduce overall leverage; and (viii) the amount required to be distributed to maintain our status as a REIT. With the fluctuating nature of cash flows and expenditures, we may periodically borrow funds on a short-term basis to cover timing differences in cash receipts and cash disbursements, including to pay dividends to our stockholders.

Results of Operations

Overview

Net loss applicable to common stockholders for the three months ended September 30, 2025 was approximately $13.5 million, or $0.11 per diluted share, as compared with net loss applicable to common stockholders of $11.5 million, or $0.09 per diluted share, for the three months ended September 30, 2024. The primary driver of the increase in net loss is the increase in depreciation expense as building improvements across our portfolio have been placed into service subsequent to July 1, 2024.

Comparison of the three months ended September 30, 2025 versus the three months ended September 30, 2024

Income from Continuing Operations

The following table sets forth selected data from our consolidated statements of operations for the three months ended September 30, 2025 and 2024, respectively, as well as each balance as a percentage of total revenues for each period presented (dollars in millions):


	September 30, 2025		% of Revenues		September 30, 2024		% of Revenues		Variance
Revenue:


Rental and tenant reimbursement revenue	$	133.0			$	132.8			$	0.2
Property management fee revenue	0.1				0.9				(0.8)
Other property related income	6.0				5.6				0.4
Total revenues	139.1		100	%	139.3		100	%	(0.2)
Expense:
Property operating costs	55.9		40	%	57.5		41	%	(1.6)
Depreciation	42.1		30	%	39.0		28	%	3.1
Amortization	15.2		11	%	17.1		12	%	(1.9)

General and administrative	7.6		6	%	6.8		5	%	0.8
	120.8				120.4				0.4
Other income (expense):
Interest expense	(32.0)		23	%	(32.1)		23	%	0.1
Other income	0.2		—	%	2.1		1	%	(1.9)




Loss on sale of real estate assets	—		—	%	(0.4)		—	%	0.4
Net loss	$	(13.5)	(10)	%	$	(11.5)	(8)	%	$	(2.0)

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Revenue

Rental and tenant reimbursement revenue increased approximately $0.2 million for the three months ended September 30, 2025, as compared to the same period in the prior year. The increase was primarily due to the roll-up of rental rates and new leases commencing during the twelve months ended September 30, 2025. The impact of this increase was partially offset by the disposition of three projects subsequent to July 1, 2024.

Property management fee revenue decreased approximately $0.8 million for the three months ended September 30, 2025, as compared to the same period in the prior year due to the termination of certain third-party property management arrangements in 2024.

Other property related income increased approximately $0.4 million for the three months ended September 30, 2025 as compared to the same period in the prior year primarily due to increased parking income associated with increased utilization and higher transient parking at our office projects during the current period, as compared to the prior period.

Expense

Property operating costs decreased approximately $1.6 million for the three months ended September 30, 2025 as compared to the same period in the prior year. The decrease was primarily due to reduced property tax expense due to lower tax assessments and successful appeals, as well as three project dispositions subsequent to July 1, 2024.

Depreciation expense increased approximately $3.1 million for the three months ended September 30, 2025 as compared to the same period in the prior year. The increase was primarily due to additional building improvements placed in service subsequent to July 1, 2024.

Amortization expense decreased approximately $1.9 million for the three months ended September 30, 2025 as compared to the same period in the prior year. The decrease was primarily due to amortization expense associated with certain lease intangible assets at our existing projects becoming fully amortized subsequent to July 1, 2024.

General and administrative expense increased approximately $0.8 million for the three months ended September 30, 2025 compared to the same period in the prior year, primarily due to increased accruals for potential performance-based compensation, largely associated with successful leasing during the nine months ended September 30, 2025.

Other Income (Expense)

Other income decreased approximately $1.9 million for the three months ended September 30, 2025 as compared to the same period in the prior year due to lower average invested cash balances in the current period.

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Comparison of the Nine Months Ended September 30, 2025 Versus the Nine Months Ended September 30, 2024

The following table sets forth selected data from our consolidated statements of operations for the nine months ended September 30, 2025 and 2024, respectively, as well as each balance as a percentage of total revenues for each period presented (dollars in millions):


	September 30, 2025		% of Revenues		September 30, 2024		% of Revenues		Variance
Revenue:


Rental and tenant reimbursement revenue	$	403.0			$	408.6			$	(5.6)
Property management fee revenue	0.3				1.5				(1.2)
Other property related income	18.8				17.0				1.8
Total revenues	422.1		100	%	427.1		100	%	(5.0)
Expense:
Property operating costs	169.4		40	%	175.5		41	%	(6.1)
Depreciation	123.7		29	%	116.7		27	%	7.0
Amortization	45.4		11	%	53.3		13	%	(7.9)
Impairment charges	—		—	%	18.4		4	%	(18.4)
General and administrative	23.1		5	%	22.8		6	%	0.3
	361.6				386.7				(25.1)
Other income (expense):
Interest expense	(95.6)		23	%	(91.4)		21	%	(4.2)
Other income	0.7		—	%	2.7		1	%	(2.0)



Loss on early extinguishment of debt	(8.0)		2	%	(0.4)		—	%	(7.6)
Gain/(loss) on sale of real estate assets	2.0		—	%	(0.4)		—	%	2.4
Net loss	$	(40.4)	(10)	%	$	(49.1)	(11)	%	$	8.7

Revenue

Rental and tenant reimbursement revenue decreased approximately $5.6 million for the nine months ended September 30, 2025 as compared to the same period in the prior year. The decrease was primarily due to the disposition of four projects subsequent to January 1, 2024. The impact of these decreases was partially offset by the roll-up of rental rates and new leases commencing during the twelve months ended September 30, 2025.

Property management fee revenue decreased approximately $1.2 million for the three months ended September 30, 2025, as compared to the same period in the prior year due to the termination of certain third-party property management arrangements in 2024.

Other property related income increased approximately $1.8 million for the nine months ended September 30, 2025 as compared to the same period in the prior year primarily due to increased parking income associated with increased utilization and higher transient parking at our office projects during the current period, as compared to the prior period.

Expense

Property operating costs decreased approximately $6.1 million for the nine months ended September 30, 2025 as compared to the same period in the prior year. The variance was primarily due to reduced property tax expense due to lower tax assessments and successful appeals, as well as project dispositions subsequent to January 1, 2024 (as discussed above). The impact of these decreases is partially offset by an increase in other recoverable property operating costs such as utilities, repairs and maintenance, landscaping and security due to increased occupancy and utilization of our projects during the current period, as compared to the prior period.

Depreciation expense increased approximately $7.0 million for the nine months ended September 30, 2025 as compared to the same period in the prior year. The increase was primarily due to additional building improvements placed in service subsequent to January 1, 2024, which were partially offset by property dispositions in 2024 and 2025.

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Amortization expense decreased approximately $7.9 million for the nine months ended September 30, 2025 as compared to the same period in the prior year. The decrease in amortization expense is associated with certain lease intangible assets at our existing projects becoming fully amortized subsequent to January 1, 2024.

During the nine months ended September 30, 2024, we recognized a non-cash impairment charge of approximately $18.4 million primarily related to shortening the projected hold period for one property. See Note 6 to our accompanying consolidated financial statements for further details.

Other Income (Expense)

Interest expense increased approximately $4.2 million for the nine months ended September 30, 2025 as compared to the same period in the prior year primarily driven by refinancing activity at higher interest rates during the twelve months ended September 30, 2025.

Other income decreased approximately $2.0 million for the three months ended September 30, 2025 as compared to the same period in the prior year due to lower average invested cash balances in the current period.

During the nine months ended September 30, 2025, we repurchased approximately $67.5 million of the aggregate principal amount of the $600 Million Unsecured Senior Notes due 2028. The premium paid to repurchase the debt, as well as the write-off of the pro-rata share of unamortized debt issuance costs, resulted in the recognition of a $7.5 million loss on early extinguishment of debt. The loss on early extinguishment of debt in the prior period was due to the write-off of unamortized debt issuance costs associated with refinancing activity during the nine months ended September 30, 2024.

Gain on sale of real estate assets during the nine months ended September 30, 2025 primarily consists of the gain recognized on the sale of the 80 and 90 Central project in Boston, Massachusetts, which closed in May of 2025, as well as recognition of the return of amounts held in escrow for the 750 West John Carpenter project sold in July 2024. During the prior period, we recognized a loss on the sale of the 750 West John Carpenter project of approximately $0.4 million.

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Issuer and Guarantor Financial Information

As of September 30, 2025, Piedmont, through its wholly-owned subsidiary Piedmont OP, had four separate issuances totaling approximately $1.5 billion of senior unsecured notes payable outstanding that mature in 2028, 2029, 2030 and 2032 (see Note 3 to our accompanying consolidated financial statements for additional details regarding each of these issuances) (collectively, the "Notes"). The Notes are senior unsecured obligations of Piedmont OP, rank equally in right of payment with all of Piedmont OP's other existing and future senior unsecured indebtedness, and would be effectively subordinated in right of payment to any of Piedmont OP’s future mortgage or other secured indebtedness (to the extent of the value of the collateral securing such indebtedness) and to all existing and future indebtedness and other liabilities of Piedmont OP’s subsidiaries, whether secured or unsecured.

The Notes are fully and unconditionally guaranteed by Piedmont, the parent entity that consolidates Piedmont OP and all other subsidiaries. In particular, Piedmont guarantees to each holder of the Notes that the principal and interest on the Notes will be paid in full when due, whether at the maturity dates of the respective loans, or upon acceleration, upon redemption, or otherwise; interest on overdue principal and interest on any overdue interest, if any, on the Notes will also be paid in full when due; and all other obligations of the Issuer to the holders of the Notes will be promptly paid in full. Piedmont's guarantee of the Notes is its senior unsecured obligation and ranks equally in right of payment with all of Piedmont's other existing and future senior unsecured indebtedness and guarantees. Piedmont’s guarantee of the Notes is effectively subordinated in right of payment to any future mortgage or other secured indebtedness or secured guarantees of Piedmont (to the extent of the value of the collateral securing such indebtedness and guarantees); and all existing and future indebtedness and other liabilities, whether secured or unsecured, of Piedmont’s subsidiaries.

In the event of the bankruptcy, liquidation, reorganization or other winding up of Piedmont OP or Piedmont, assets that secure any of their respective secured indebtedness and other secured obligations will be available to pay their respective obligations under the Notes or the guarantee, as applicable, and their other respective unsecured indebtedness and other unsecured obligations only after all of their respective indebtedness and other obligations secured by those assets have been repaid in full.

All non-guarantor subsidiaries are separate and distinct legal entities and have no obligation, contingent or otherwise, to pay any amounts due pursuant to the Notes, or to make any funds available therefore, whether by dividends, loans, distributions or other payments.

Pursuant to Rule 13-01 of Regulation S-X, Guarantors and Issuers of Guaranteed Securities Registered or Being Registered, the following tables present summarized financial information for Piedmont OP as issuer and Piedmont as guarantor on a combined basis after elimination of (i) intercompany transactions and balances among Piedmont OP and Piedmont and (ii) equity in earnings from and investments in any subsidiary that is a non-guarantor (in thousands):


Combined Balances of Piedmont OP and Piedmont Realty Trust, Inc. as Issuer and Guarantor, respectively	As of September 30, 2025		As of December 31, 2024

Due from non-guarantor subsidiary	$	900	$	900
Total assets	$	246,859	$	376,871
Total liabilities	$	2,041,883	$	2,108,306

			For the Nine Months Ended September 30, 2025
Total revenues			$	36,190
Net loss			$	(94,787)

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Net Operating Income by Geographic Segment

Our President and Chief Executive Officer is our chief operating decision maker ("CODM"), who evaluates our portfolio and assesses the ongoing operations and performance of our projects utilizing the following geographic segments: Atlanta, Dallas, Orlando, Northern Virginia/Washington, D.C., Minneapolis, New York, and Boston. These operating segments are also our reportable segments. Additionally, as of September 30, 2025, we owned two projects in Houston that did not meet the definition of an operating or reportable segment as the CODM does not regularly review these projects for purposes of allocating resources or assessing performance, and we do not maintain a significant presence or anticipate further investment in this market. These two projects are included in "Other" below. See Note 13 to the accompanying consolidated financial statements for additional information and a reconciliation of Net loss applicable to Piedmont to accrual-based net operating income ("NOI").

The following table presents NOI by geographic segment (in thousands):


	Three Months Ended				Nine Months Ended
	September 30, 2025		September 30, 2024		September 30, 2025		September 30, 2024
Atlanta	$	29,035	$	27,661	$	87,077	$	81,563
Dallas	15,620		15,366		47,152		47,411
Orlando	9,210		7,456		26,686		24,525
Northern Virginia/Washington, D.C.	6,679		8,021		21,371		26,700
Minneapolis	5,965		5,149		18,095		17,661
New York	7,825		7,433		23,559		22,427
Boston	5,914		7,024		19,638		21,352
Total reportable segments	80,248		78,110		243,578		241,639
Other	3,019		3,067		9,220		9,294
Total NOI	$	83,267	$	81,177	$	252,798	$	250,933

Comparison of the Nine Months Ended September 30, 2025 Versus the Nine Months Ended September 30, 2024

Atlanta

NOI increased due to several leases commencing at our Galleria on the Park and Glenridge Highlands projects during the nine months ended September 30, 2025 as compared to the same period in the prior year.

Northern Virginia/Washington, D.C.

NOI decreased primarily due to the expiration or downsizing of certain tenants at our 1201 & 1225 Eye Street project, our 4250 North Fairfax Drive project, and our Arlington Gateway project during the nine months ended September 30, 2025 as compared to the same period in the prior year.

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Funds From Operations ("FFO"), Core Funds From Operations ("Core FFO"), and Adjusted Funds From Operations

(“AFFO”)

Net income/(loss) calculated in accordance with GAAP is the starting point for calculating FFO, Core FFO, and AFFO. These metrics are non-GAAP financial measures and should not be viewed as an alternative measurement of our operating performance to net income/(loss). Management believes that accounting for real estate assets in accordance with GAAP implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, many industry investors and analysts have considered the presentation of operating results for real estate companies that use historical cost accounting alone to be insufficient. As a result, we believe that the additive use of FFO, Core FFO, and AFFO, together with the required GAAP presentation, provides a more complete understanding of our performance relative to our competitors and a more informed and appropriate basis on which to make decisions involving operating, financing, and investing activities.

We calculate FFO in accordance with the current National Association of Real Estate Investment Trusts ("NAREIT") definition. NAREIT currently defines FFO as Net income/(loss) (calculated in accordance with GAAP), excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control, and impairment write-downs of certain real estate assets, goodwill, and investment in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity, along with appropriate adjustments to those reconciling items for joint ventures, if any. Other REITs may not define FFO in accordance with the NAREIT definition, or may interpret the current NAREIT definition differently than we do; therefore, our computation of FFO may not be comparable to the computation made by other REITs.

We calculate Core FFO by starting with FFO, as defined by NAREIT, and adjusting for gains or losses on the early extinguishment of swaps and/or debt and any significant non-recurring or infrequent items. Core FFO is a non-GAAP financial measure and should not be viewed as an alternative to net income/(loss) calculated in accordance with GAAP as a measurement of our operating performance. We believe that Core FFO is helpful to investors as a supplemental performance measure because it excludes the effects of certain infrequent or non-recurring items which can create significant earnings volatility, but which do not directly relate to our core recurring business operations. As a result, we believe that Core FFO can help facilitate comparisons of operating performance between periods and provides a more meaningful predictor of future earnings potential. Other REITs may not define Core FFO in the same manner as us; therefore, our computation of Core FFO may not be comparable to the computation made by other REITs.

We calculate AFFO by starting with Core FFO and adjusting for non-incremental capital expenditures and then adding back non-cash items including: non-real estate depreciation, straight-lined rents and fair value lease adjustments, non-cash components of interest expense and compensation expense, and by making similar adjustments for joint ventures, if any. AFFO is a non-GAAP financial measure and should not be viewed as an alternative to net income/(loss) calculated in accordance with GAAP as a measurement of our operating performance. We believe that AFFO is helpful to investors as a meaningful supplemental comparative performance measure of our ability to make incremental capital investments in new properties or enhancements to existing properties that improve revenue growth potential. Other REITs may not define AFFO in the same manner as us; therefore, our computation of AFFO may not be comparable to the computation of other REITs.

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Reconciliations of net loss applicable to common stock to FFO, Core FFO, and AFFO for the three and nine months ended September 30, 2025 and 2024 are presented below (in thousands except per share amounts):


	Three Months Ended				Nine Months Ended
	September 30, 2025		September 30, 2024		September 30, 2025		September 30, 2024
GAAP net loss applicable to common stock	$	(13,462)	$	(11,519)	$	(40,374)	$	(49,091)
Depreciation of real estate assets	41,759		38,642		122,538		115,699
Amortization of lease-related costs	15,188		17,059		45,379		53,260
Impairment charges	—		—		—		18,432
(Gain)/loss on sale of real estate assets	—		445		(2,013)		445


NAREIT FFO applicable to common stock	43,485		44,627		125,530		138,745
Adjustments:


Loss on early extinguishment of debt	—		—		8,000		386

Core FFO applicable to common stock	43,485		44,627		133,530		139,131
Adjustments:
Amortization of debt issuance costs and discounts on debt	1,561		1,332		4,591		3,679
Depreciation of non-real estate assets	368		347		1,106		950
Straight-line effects of lease revenue	(6,251)		(5,125)		(24,887)		(15,570)

Stock-based compensation adjustments	2,503		2,153		4,954		5,240
Amortization of lease-related intangibles	(1,959)		(2,463)		(5,978)		(7,668)


Non-incremental capital expenditures (1)	(13,203)		(14,934)		(47,082)		(53,432)
AFFO applicable to common stock	$	26,504	$	25,937	$	66,234	$	72,330
Weighted-average shares outstanding – diluted (2)	126,007		125,675		125,638		125,087
NAREIT FFO per share (diluted)	$	0.35	$	0.36	$	1.00	$	1.11
Core FFO per share (diluted)	$	0.35	$	0.36	$	1.06	$	1.11

(1)We define non-incremental capital expenditures as capital expenditures of a recurring nature related to tenant improvements, leasing commissions, and building capital that do not incrementally enhance the underlying assets' income generating capacity. Tenant improvements, leasing commissions, building capital and deferred lease incentives incurred to lease space that was vacant at acquisition, leasing costs for spaces vacant for greater than one year, leasing costs for spaces at newly acquired properties for which in-place leases expire shortly after acquisition, improvements associated with the expansion of a building, and renovations that either enhance the rental rates of a building or change the property's underlying classification, such as from a Class B to a Class A property, are excluded from this measure.

(2)Includes potential dilution under the treasury stock method that would occur if our remaining unvested and potential stock awards vested and resulted in additional common shares outstanding. Such shares are not included when calculating net loss per share applicable to Piedmont for the three and nine months ended September 30, 2025 and 2024, respectively, as they would reduce the loss per share presented.

NAREIT FFO applicable to common stock was $1.00 per diluted share for the nine months ended September 30, 2025, as compared to $1.11 per diluted share for the same period in the prior year due to the recognition of loss on early extinguishment of debt associated with debt retired during the current period, increased interest expense, net of interest income, recognized during the current period as compared to the nine months ended September 30, 2024, as well as the sale of four projects subsequent to January 1, 2024. Core FFO applicable to common stock was $1.06 per diluted share for the nine months ended September 30, 2025, as compared to $1.11 per diluted share for the same period in the prior year. The decrease is due to increased interest expense, net of interest income, in the current year as compared to the nine months ended September 2024, as well as the sale of four projects subsequent to January 1, 2024.

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Property and Same Store Net Operating Income

Property Net Operating Income ("Property NOI") is a non-GAAP measure which we use to assess our operating results. We calculate Property NOI beginning with Net income/(loss) (calculated in accordance with GAAP) before adjusting for interest, depreciation and amortization and removing any impairments and gains or losses from sales of property and other significant infrequent items that create volatility within our earnings and make it difficult to determine the earnings generated by our core ongoing business. Furthermore, we remove general and administrative expenses, income associated with property management performed by us for other organizations, and other income or expense items. For Property NOI (cash basis), straight-lined rents and fair value lease revenue are also eliminated; while such effects are not adjusted in calculating Property NOI (accrual basis). Property NOI is a non-GAAP financial measure and should not be viewed as an alternative to net income/(loss) calculated in accordance with GAAP as a measurement of our operating performance. We believe that Property NOI, on either a cash or accrual basis, is helpful to investors as a supplemental comparative performance measure of income generated by our properties alone without our administrative overhead. Other REITs may not define Property NOI in the same manner as we do; therefore, our computation of Property NOI may not be comparable to that of other REITs.

We calculate Same Store Net Operating Income ("Same Store NOI") as Property NOI attributable to the properties (excluding undeveloped land parcels) that were (i) owned by us during the entire span of the current and prior year reporting periods; and (ii) that were not out of service for development or redevelopment during those periods. Same Store NOI, on either a cash or accrual basis, is a non-GAAP financial measure and should not be viewed as an alternative to net income/(loss) calculated in accordance with GAAP as a measurement of our operating performance. We believe that Same Store NOI is helpful to investors as a supplemental comparative performance measure of the income generated from the same group of properties from one period to the next. Other REITs may not define Same Store NOI in the same manner as we do; therefore, our computation of Same Store NOI may not be comparable to that of other REITs.

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The following table sets forth a reconciliation from net income calculated in accordance with GAAP to EBITDAre, Core EBITDA, Property NOI, and Same Store NOI, on both a cash and accrual basis, for the three months ended September 30, 2025 and 2024, respectively (in thousands):


	Cash Basis					Accrual Basis
	Three Months Ended					Three Months Ended
	September 30, 2025			September 30, 2024		September 30, 2025			September 30, 2024

Net loss applicable to Piedmont (GAAP basis)	$	(13,462)		$	(11,519)	$	(13,462)		$	(11,519)

Net income applicable to noncontrolling interest	5			—		5			—
Interest expense	31,968			32,072		31,968			32,072
Depreciation	42,127			38,988		42,127			38,988
Amortization	15,188			17,059		15,188			17,059
Depreciation and amortization attributable to noncontrolling interests	—			20		—			20



Loss on sale of real estate assets	—			445		—			445






EBITDAre(1) and Core EBITDA(2)	75,826			77,065		75,826			77,065
General & administrative expenses	7,607			6,809		7,607			6,809
Management fee revenue (3)	(114)			(714)		(114)			(714)
Other income	(52)			(1,983)		(52)			(1,983)

Straight-line rent effects of lease revenue	(6,251)			(5,125)
Straight line effects of lease revenue attributable to noncontrolling interests	—			1
Amortization of lease-related intangibles	(1,959)			(2,463)

Property NOI	75,057			73,590		83,267			81,177

Net operating (income)/loss from:

Dispositions (4)	54			(1,383)		54			(1,269)
Other investments (5)	(42)			816		(118)			687

Same Store NOI	$	75,069		$	73,023	$	83,203		$	80,595

Change period over period in Same Store NOI	2.8		%	N/A		3.2		%	N/A

(1)We calculate Earnings Before Interest, Taxes, Depreciation, and Amortization- Real Estate ("EBITDAre") in accordance with the current NAREIT definition. NAREIT currently defines EBITDAre as net income/(loss) (computed in accordance with GAAP) adjusted for gains or losses from sales of property, impairment charges, depreciation on real estate assets, amortization on real estate assets, interest expense and taxes, along with the same adjustments for joint ventures. Some of the adjustments mentioned can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates. EBITDAre is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of our operating performance. We believe that EBITDAre is helpful to investors as a supplemental performance measure because it provides a metric for understanding our results from ongoing operations without taking into account the effects of non-cash expenses (such as depreciation and amortization) and capitalization and capital structure expenses (such as interest expense and taxes). We also believe that EBITDAre can help facilitate comparisons of operating performance between periods and with other REITs. However, other REITs may not define EBITDAre in accordance with the NAREIT definition, or may interpret the current NAREIT definition differently than us; therefore, our computation of EBITDAre may not be comparable to that of such other REITs.

(2)We calculate Core Earnings Before Interest, Taxes, Depreciation, and Amortization ("Core EBITDA") as net income/(loss) (computed in accordance with GAAP) before interest, taxes, depreciation and amortization and incrementally removing any impairment charges, gains or losses from sales of property, loss on early extinguishment of debt, and other significant infrequent items that create volatility within our earnings and make it difficult to determine the earnings generated by our core ongoing

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business. Core EBITDA is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of our operating performance. We believe that Core EBITDA is helpful to investors as a supplemental performance measure because it provides a metric for understanding the performance of our results from ongoing operations without taking into account the effects of non-cash expenses (such as depreciation and amortization), as well as items that are not part of normal day-to-day operations of our business. Other REITs may not define Core EBITDA in the same manner as us; therefore, our computation of Core EBITDA may not be comparable to that of other REITs.

(3)Presented net of related operating expenses incurred to earn such management fee revenue.

(4)Dispositions include 80 and 90 Central, sold in the second quarter of 2025, 161 Corporate Center, sold in the first quarter of 2025, 750 West John Carpenter Freeway, sold in the third quarter of 2024, and One Lincoln Park, sold in the first quarter of 2024.

(5)Other investments include active or recently completed out-of-service redevelopment projects and land. The operating results from a portion of The Exchange in Orlando, Florida, as well as Meridian and 9320 Excelsior Boulevard in suburban Minneapolis, Minnesota are included in this line item.

The following table sets forth a reconciliation of net loss calculated in accordance with GAAP to EBITDAre, Core EBITDA, Property NOI, and Same Store NOI, on both a cash and accrual basis, for the nine months ended September 30, 2025 and 2024 (in thousands):


	Cash Basis					Accrual Basis
	Nine Months Ended					Nine Months Ended
	September 30, 2025			September 30, 2024		September 30, 2025			September 30, 2024

Net loss applicable to Piedmont (GAAP)	$	(40,374)		$	(49,091)	$	(40,374)		$	(49,091)

Net income applicable to noncontrolling interest	13			4		13			4
Interest expense	95,599			91,355		95,599			91,355
Depreciation	123,644			116,649		123,644			116,649
Amortization	45,379			53,260		45,379			53,260
Depreciation and amortization attributable to noncontrolling interests	38			59		38			59

Impairment charges	—			18,432		—			18,432

(Gain)/loss on sale of real estate assets	(2,013)			445		(2,013)			445


EBITDAre	222,286			231,113		222,286			231,113
Loss on early extinguishment of debt	8,000			386		8,000			386


Core EBITDA	230,286			231,499		230,286			231,499
General & administrative expenses	23,130			22,773		23,130			22,773
Management fee revenue (1)	(254)			(965)		(254)			(965)
Other income	(364)			(2,374)		(364)			(2,374)

Straight-line effects of lease revenue	(24,887)			(15,570)
Straight line effects of lease revenue attributable to noncontrolling interests	(4)			1
Amortization of lease-related intangibles	(5,978)			(7,668)

Property NOI	221,929			227,696		252,798			250,933

Net operating income from:

Dispositions (2)	(1,616)			(5,141)		(1,725)			(5,188)
Other investments (3)	211			(838)		(37)			(1,131)

Same Store NOI	$	220,524		$	221,717	$	251,036		$	244,614

Change period over period in Same Store NOI	(0.5)		%	N/A		2.6		%	N/A

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(1)Presented net of related operating expenses incurred to earn such management fee revenue.

(2)Dispositions include 80 and 90 Central, sold in the second quarter of 2025, 161 Corporate Center, sold in the first quarter of 2025, 750 West John Carpenter Freeway, sold in the third quarter of 2024, and One Lincoln Park, sold in the first quarter of 2024.

(3)Other investments include active or recently completed out-of-service redevelopment projects and land. The operating results from a portion of The Exchange in Orlando, Florida, as well as Meridian and 9320 Excelsior Boulevard in suburban Minneapolis, Minnesota are included in this line item.

Overview

Our portfolio consists of office projects located within identified growth submarkets in large metropolitan cities concentrated primarily in the Sunbelt. We typically lease space to creditworthy corporate or governmental tenants on a long-term basis. As of September 30, 2025, our average lease was approximately 14,000 square feet with six years of lease term remaining. Leased percentage, as well as rent roll-ups and roll-downs, which we experience as a result of re-leasing, can fluctuate widely between buildings and between tenants, depending on when a particular lease is scheduled to commence or expire.

Leased Percentage

During the nine months ended September 30, 2025, the leased percentage of our in-service portfolio increased to 89.2% leased as compared to 88.4% leased as of December 31, 2024, as square footage associated with new tenant leases for vacant space outweighed square footage associated with expiring leases. As of September 30, 2025, scheduled lease expirations for the remainder of 2025 represented 2% of our Annualized Lease Revenue. To the extent the square footage from new leases for currently vacant space in our in-service portfolio exceeds or falls short of the square footage associated with non-renewing expirations, such leases would increase or decrease our in-service leased percentage, respectively. As of September 30, 2025, three projects, 222 South Orange Avenue in Orlando, Florida, and 9320 Excelsior Boulevard and Meridian, both in suburban Minneapolis, Minnesota, were classified as out of service as they undergo redevelopment.

Impact of Downtime, Abatement Periods, and Rental Rate Changes

Commencement of a lease associated with a new tenant typically occurs 6-18 months after the lease execution date, after refurbishment of the space is completed. The downtime between a lease expiration and the new lease's commencement can negatively impact Property NOI and Same Store NOI comparisons (both accrual and cash basis). In addition, office leases for both new and renewing tenants often contain upfront rental and/or operating expense abatement periods which delay the cash flow benefits of the lease even after the new or renewed lease has commenced, negatively impacting Property NOI and Same Store NOI on a cash basis until such abatements expire. As of September 30, 2025, we had approximately 0.9 million square feet of executed leases for vacant space that are yet to commence representing approximately $39 million of future additional annual cash rents, and approximately 1.1 million square feet of executed leases currently under rental abatement, representing approximately $36 million of future additional annual cash rents.

If we are unable to replace expiring leases with new or renewal leases at rental rates equal to or greater than the expiring rates, rental rate roll-downs could occur and negatively impact Property NOI and Same Store NOI comparisons. As discussed above, our diverse portfolio and the magnitude of some of our tenants' leased spaces can result in rent roll-ups and roll-downs that can fluctuate widely on a project-by-project and a quarter-to-quarter basis. During the three months ended September 30, 2025, we experienced an 8.6% and 20.2% roll-up in cash and accrual rents, respectively, on executed leases related to space vacant one year or less.

During the three months ended September 30, 2025, Same Store NOI increased by 2.8% on a cash basis and 3.2% on an accrual basis as the commencement or expiration of abatement on new leases outweighed expiring leases. Same Store NOI comparisons for any given period fluctuate as a result of the mix of net leasing activity in individual properties during the respective period.

Election as a REIT

We have elected to be taxed as a REIT under the Code and have operated as such beginning with our taxable year ended December 31, 1998. To qualify as a REIT, we must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of our adjusted REIT taxable income, computed without regard to the dividends-paid deduction and by excluding net capital gains attributable to our stockholders, as defined by the Code. As a REIT, we generally will not be subject to federal income tax on income that we distribute to our stockholders. If we fail to qualify as a REIT in any taxable year, we may be subject to federal income taxes on our taxable income for that year and for the four years following the

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year during which qualification is lost and/or penalties, unless the IRS grants us relief under certain statutory provisions. Such an event could materially adversely affect our net income/(loss) and net cash available for distribution to our stockholders. However, we believe that we are organized and operate in such a manner as to qualify for treatment as a REIT and intend to continue to operate in the foreseeable future in such a manner that we will remain qualified as a REIT for federal income tax purposes. We have elected to treat one of our wholly owned subsidiaries as a taxable REIT subsidiary ("TRS"). Our TRS performs non-customary services for tenants of buildings that we own, including real estate and non-real estate related-services. Any earnings related to such services performed by our TRS are subject to federal and state income taxes. In addition, for us to continue to qualify as a REIT, our investments in TRS cannot exceed 20% of the value of our total assets.

Inflation

We are exposed to inflation risk, as income from long-term leases is the primary source of our cash flows from operations. There are provisions in the majority of our tenant leases that are intended to protect us from, and mitigate the risk of, the impact of inflation. These provisions include rent steps, reimbursement billings for operating expense pass-through charges, real estate tax, and insurance on a per square-foot basis, or in some cases, annual reimbursement of operating expenses above certain per square-foot allowances. However, due to the long-term nature of the leases, the leases may not readjust their reimbursement rates frequently enough to fully cover inflation.

Application of Critical Accounting Estimates

Our accounting policies have been established to conform with GAAP. The preparation of financial statements in conformity with GAAP requires management to use judgment in the application of accounting policies, including making estimates and assumptions. These judgments affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. If our judgment or interpretation of the facts and circumstances relating to various transactions had been different, it is possible that different accounting policies would have been applied, thus, resulting in a different presentation of the financial statements. Additionally, other companies may utilize different estimates that may impact comparability of our results of operations to those of companies in similar businesses. Refer to our Annual Report on Form 10-K for the year ended December 31, 2024 for a discussion of our critical accounting policies and estimates. There have been no material changes to these policies during the nine months ended September 30, 2025.

Commitments and Contingencies

We are subject to certain commitments and contingencies with regard to certain transactions. Refer to Note 8 to our consolidated financial statements for further explanation.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Our future income, cash flows, and estimated fair values of our financial instruments depend in part upon prevailing market interest rates. Market risk is the exposure to loss resulting from changes in interest rates, foreign currency, exchange rates, commodity prices, and equity prices. As of September 30, 2025, our primary market risk is our exposure to interest rate fluctuations in connection with borrowings under our $600 Million Unsecured 2022 Line of Credit. Many factors, including governmental monetary and tax policies, domestic and international economic and political considerations, and other factors that are beyond our control contribute to interest rate risk, including changes in the method pursuant to which SOFR rates are determined.

Our interest rate risk management objectives are to limit the impact of interest rate changes on earnings and cash flow primarily through a low-to-moderate level of overall borrowings, as well as managing the variability in rate fluctuations on our outstanding debt. As such, all of our debt as of September 30, 2025, other than the variable rate facility mentioned above, is currently based on fixed or effectively-fixed interest rates to hedge against volatility in the credit markets. We do not enter into derivative or interest rate transactions for speculative purposes, as such all of our debt and derivative instruments were entered into for purposes other than trading purposes.

The estimated fair value of our debt was approximately $2.2 billion for both the periods ended September 30, 2025 and December 31, 2024. Our interest rate swap agreements in place as of September 30, 2025 carried a notional amount totaling $325 million with a weighted-average fixed interest rate of 5.38%, and our interest swap agreements as of December 31, 2024 carried a notional amount totaling $450 million with a weighted-average fixed interest rate of 5.07%.

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As of September 30, 2025, our total outstanding debt subject to fixed, or effectively fixed, interest rates totaled approximately $2.0 billion and had an average effective interest rate of approximately 6.01% per annum with contractual expirations, not including extension options, ranging from 2027 to 2032. A change in the market interest rate would impact the relative fair value of our fixed-rate debt portfolio but has no impact on interest incurred or cash flows for that portfolio.

As of September 30, 2025, we had $166.0 million outstanding on our $600 Million Unsecured 2022 Line of Credit. Our $600 Million Unsecured 2022 Line of Credit currently has a stated rate of SOFR plus 1.05% per annum (based on our current credit rating as defined in the credit agreement), resulting in a total interest rate of 5.29%. To the extent that we borrow additional funds in the future under the $600 Million Unsecured 2022 Line of Credit or potential future variable-rate debt facilities, we would have exposure to increases in interest rates, which would potentially increase our cost of debt. Additionally, a 1.0% increase in variable interest rates on our existing outstanding borrowings as of September 30, 2025 would increase interest expense approximately $1.7 million on a per annum basis.

ITEM 4. CONTROLS AND PROCEDURES

Management’s Conclusions Regarding the Effectiveness of Disclosure Controls and Procedures

We carried out an evaluation, under the supervision and with the participation of management, including the Principal Executive Officer and the Principal Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934 (the “Exchange Act”) as of the end of the quarterly period covered by this report. Based upon that evaluation, the Principal Executive Officer and the Principal Financial Officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this quarterly report in providing a reasonable level of assurance that information we are required to disclose in the reports we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in applicable SEC rules and forms, including providing a reasonable level of assurance that information required to be disclosed by us in the reports we file under the Exchange Act is accumulated and communicated to our management, including the Principal Executive Officer and the Principal Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting during the quarter ended September 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We are not subject to any material pending legal proceedings. However, we are subject to routine litigation arising in the ordinary course of owning and operating real estate assets. Our management expects that these ordinary routine legal proceedings will be covered by insurance and does not expect these legal proceedings to have a material adverse effect on our financial condition, results of operations, or liquidity. Additionally, management is not aware of any legal proceedings against Piedmont contemplated by governmental authorities.

ITEM 1A. RISK FACTORS

There have been no known material changes from the risk factors previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2024, and Quarterly Report on Form 10-Q for the quarter ended March 31, 2025.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

(a)There were no unregistered sales of equity securities during the third quarter of 2025.

(b)None.

(c)None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

During the fiscal quarter ended September 30, 2025, none of our directors or officers adopted or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement” as those terms are defined in Regulation S-K, Item 408.

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ITEM 6. EXHIBITS

Exhibit

Number

Description of Document

3.1.1

Third Articles of Amendment and Restatement of Piedmont (incorporated by reference to Exhibit 3.1 to Piedmont’s Annual Report on Form 10-K for the fiscal year ended December 31, 2009, filed on March 16, 2010).

3.1.2

Articles of Amendment of Piedmont effective June 30, 2011 (incorporated by reference to Exhibit 3.2 to Piedmont's Current Report on Form 8-K filed on July 6, 2011).

3.1.3

Articles Supplementary of Piedmont effective June 30, 2011 (incorporated by reference to Exhibit 3.1 to Piedmont's Current Report on Form 8-K filed on July 6, 2011).

3.1.4

Articles Supplementary to the Third Articles of Amendment and Restatement of Piedmont, as supplemented and amended (incorporated by reference to Exhibit 3.1 to Piedmont's Current Report on Form 8-K, filed on November 14, 2016).

3.1.5

Articles of Amendment to the Third Articles of Amendment and Restatement of Piedmont, as supplemented and amended (incorporated by reference to Exhibit 3.1 to Piedmont's Current Report on Form 8-K filed on May 23, 2018).

3.1.6

3.2

Second Amended and Restated Bylaws of Piedmont (incorporated by reference to Exhibit 3.2 to Piedmont’s Current Report on Form 8-K, filed on June 9, 2025).

10.1

Amendment No. 1 to Second Amended and Restated Revolving Credit Agreement, dated as of September 16, 2025, by and among Piedmont Operating Partnership, LP, Piedmont Realty Trust, Inc., each lender initially signatory thereto, JPMorgan Chase Bank, N.A., Truist Securities, Inc., U.S. Bank National Association, Wells Fargo Securities, LLC, BofA Securities Inc. and TD Securities (USA) LLC, as Joint Lead Arrangers and Joint Bookrunners, and JPMorgan Chase Bank, N.A., as administrative agent for the lenders (incorporated by reference to Exhibit 10.1 to Piedmont's Current Report on Form 8-K filed on September 16, 2025).

10.2

Amendment No. 3 to Term Loan Agreement, dated as of September 16, 2025, by and among Piedmont Operating Partnership, LP, Piedmont Realty Trust, Inc., each lender initially signatory thereto, Truist Securities, Inc., as Lead Arranger and Book Manager, and Truist Bank, as administrative agent for the lenders (incorporated by reference to Exhibit 10.2 to Piedmont's Current Report on Form 8-K filed on September 16, 2025).

22.1

Subsidiary Issuer of Guaranteed Securities (incorporated by reference to Exhibit 22.1 to Piedmont's Quarterly Report on Form 10-Q filed on July 28, 2025).

31.1

Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2

Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1

Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2

Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS

XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.SCH

Inline XBRL Taxonomy Extension Schema Document.

101.CAL

Inline XBRL Taxonomy Extension Calculation Linkbase Document.

101.DEF

Inline XBRL Taxonomy Extension Definition Linkbase Document.

101.LAB

Inline XBRL Taxonomy Extension Label Linkbase Document.

101.PRE

Inline XBRL Taxonomy Extension Presentation Linkbase Document.

104

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

* Indicates management compensatory plan or arrangement.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


		PIEDMONT REALTY TRUST, INC.
		(Registrant)

Dated:	October 27, 2025	By:	/s/ Sherry L. Rexroad
			Sherry L. Rexroad
			Chief Financial Officer and Executive Vice President
			(Principal Financial Officer and Duly Authorized Officer)

Source: View Original Filing on SEC EDGAR

FAQ

What was PDM’s Q3 2025 net loss and EPS?

Net loss was $13.5 million, or $0.11 per basic and diluted share.

How did Piedmont Realty Trust’s revenue and NOI trend in Q3 2025?

Total revenues were $139.2 million and NOI was $83.3 million, modestly higher than a year ago for NOI.

What is PDM’s current liquidity position?

The company reported $434 million available under its $600 million unsecured line of credit with no required debt maturities until 2028.

What were key debt and interest rate actions in 2025?

PDM upsized its 2024 term loan to $325 million, extended its credit line to June 30, 2028 (with two one-year options), removed a SOFR credit spread adjustment (10 bps reduction), and repurchased $67.5 million of 2028 notes.

What is PDM’s portfolio size and occupancy?

As of September 30, 2025, the portfolio included 29 in-service projects totaling approximately 14.9 million square feet, 89.2% leased.

How much did PDM spend on capital expenditures year-to-date?

Capital expenditures were $115.8 million for the nine months ended September 30, 2025.

Did PDM complete any asset sales in 2025?

Yes. Closed sales included 161 Corporate Center (proceeds $4.98 million) and 80 and 90 Central (proceeds $25.69 million), with recorded gains for the period.

[10-Q] Piedmont Realty Trust, Inc. Quarterly Earnings Report

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What was PDM’s Q3 2025 net loss and EPS?

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What were key debt and interest rate actions in 2025?

What is PDM’s portfolio size and occupancy?

How much did PDM spend on capital expenditures year-to-date?

Did PDM complete any asset sales in 2025?

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[10-Q] Piedmont Realty Trust, Inc. Quarterly Earnings Report

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REIT analyst neutral

FAQ

What was PDM’s Q3 2025 net loss and EPS?

How did Piedmont Realty Trust’s revenue and NOI trend in Q3 2025?

What is PDM’s current liquidity position?

What were key debt and interest rate actions in 2025?

What is PDM’s portfolio size and occupancy?

How much did PDM spend on capital expenditures year-to-date?

Did PDM complete any asset sales in 2025?

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