Piedmont Realty Trust, Inc. Q1 FY2025 earnings call

• Brent noted the solid start to 2025 with 363,000 sq ft leased, double-digit rental rate roll-ups, completed refinancing including paying off a $250M term loan and extending a $600M line of credit. • George highlighted premium office space attracting customers, Galleria 600 lobby rejuvenation awarded an award, 57 transactions totaling ~363,000 sq ft in Q1, strong leasing pipeline with ~750,000 sq ft executed or in legal stage, and specific market details like Atlanta's law firm deals, Orlando's renewal, and Dallas' lease. • Chris mentioned one non-core asset disposition closed, another expected to close, and two to three assets being marketed. • Sherry discussed core FFO per diluted share for Q1 2025 was $0.36 vs $0.39 in Q1 2024, AFFO in line with recent quarters, and balance sheet with no final debt maturities until 2028 and ~$500M available under revolving line of credit.

During the first quarter, Piedmont completed approximately 363,000 square feet of total leasing, with about half related to new tenant leases. Leases reflected double-digit rental rate roll-ups. Atlanta was the most active market with 122,000 sq ft leased, Orlando captured 23% of overall volume including a large renewal, and Dallas had a 93,000 sq ft lease signed in April. Revenue contribution by market wasn't explicitly stated in absolute % but market activity details were provided.

• Affirmed 2025 annual core FFO guidance in the range of $1.38 to $1.44 per diluted share. • Anticipated core FFO to dip over next two quarters then improve in Q4 as larger leases commence. • Suspension of dividend to fund accretive long-term growth and retain earnings to reduce leverage, expected to result in up to $0.01 accretion in 2025. • Confident in achieving year-end lease percentage guidance of 89% to 90% assuming no material U.S. economy surprise.

• Macro-economic uncertainty causing national gross leasing volume to slow moderately. • Uncertainty around real estate dispositions due to post-Liberation Day market conditions. • Impact of economic volatility on leasing activity and ability to close dispositions.

Q: Just wanted to touch on sort of the leasing pipeline and decision to keep guidance maintained. Is there conservatism baked in given macro uncertainty?

A: Brent said leasing pipeline is strong with ~750,000 sq ft, 275K sq ft executed in April, pipeline for tour activities and proposals at record levels over 3 million sq ft. Cautious due to market uncertainty but no deterioration in legal stage pipeline, and有可能 revising leasing volume guidance up in second quarter if momentum continues.

Q: Historically wide gap between lease percentage and economic lease percentage. When to expect it to close?

A: Brent said suspension of dividend provides ~$60M annual cash flow retained. Intends to fund internal growth with retained earnings, and expects dividend to be turned back on at the earliest in latter part of 2026 given focus on excess liquidity and balance sheet improvement.

Q: Circling back on the dividend, thoughts behind it? Any pressure from banks? Metrics from rating agencies?

A: Brent said company in unique life cycle with record leasing momentum, diminished cash flow from rent. Dispositions uncertain, raising equity not rationale, leverage considered but retained earnings lower cost. Rating agencies supportive of leasing and refinancing, retained earnings earmarked for leasing, CapEx, and potential debt reduction.

Q: 3 million sq ft of proposals, any other markets seeing pickup?

A: George said 87% of new activity in proposal pipeline is in Atlanta, Dallas, and Minneapolis as those are where most vacancies sit, D.C. was flat, New York and Orlando stable, Boston not at same velocity as first few markets.