Piedmont Office Realty Trust, Inc. Q3 FY2025 earnings call

• U.S. office demand turned around in Q3 2025 with about 12 million more square feet of office space occupied than returned. - Piedmont's portfolio had 5 operating markets with positive absorption, and new tenant leasing velocity strengthened. - Piedmont was able to increase rental rates by up to 20% in its projects. - The in - service lease percentage reached 89.2% and is on track to reach the year - end goal of 89% - 90%. The out - of - service portfolio approached 70% leased. - Core FFO per diluted share for Q3 2025 was $0.35 compared to $0.36 in Q3 2024, offset by growth in operations. - AFFO generated during Q3 2025 was approximately $26.5 million. - The revolving credit facility and term loan were amended to lower interest rates. - Piedmont achieved a 5 - star rating and Green Star recognition from GRESB.

U.S. office demand turned around in the third quarter of 2025. Piedmont's portfolio saw record - breaking leasing levels. The in - service lease percentage increased by 50 basis points quarter - over - quarter to 89.2%. The out - of - service portfolio was over 50% leased by the end of the third quarter. Rental rates for space vacant less than a year had cash and accrual roll - ups of almost 9% and just over 20% respectively.

• Still on track to meet or exceed 2025 financial and operational goals. - Confident in achieving mid - single - digit FFO growth or better in 2026 and 2027. - Targets an operating portfolio lease percentage of 89% - 90% by year - end. - The redevelopment portfolio is projected to reach 60% - 70% lease percentage by year - end.

• Uncertainties in market dynamics that could impact leasing and rental rates. - Uncertainties in debt refinancing and balance sheet management. - Challenges in disposing non - core assets due to the market mindset.

Q: Nicholas Thillman asked about expansion vs contraction within the Piedmont portfolio and the source of new leasing.

A: Christopher Smith referred to the JLL report, and George Wells said there were more expansions than contractions for 5 quarters, and new leasing was mostly intra - market upgrades.

Q: Anthony Paolone asked about debt refinancing gating factors and the type of acquisitions.

A: Sherry Rexroad said there were no gating factors but processes to consider, and Christopher Smith talked about opportunistic and value - add acquisition types.

Q: Dylan Burzinski asked about the non - core asset disposition process.

A: Christopher Smith talked about challenging markets and reintroducing assets in 2026.

Q: Michael Lewis asked about the NYC lease delay and office leasing velocity vs jobs/layoffs.

A: Brent Smith talked about factors causing the NYC lease delay, and George Wells said layoffs were not affecting leasing as people were upgrading their space