Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 30, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-34626 | |
Entity Registrant Name | Piedmont Office Realty Trust, Inc. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 58-2328421 | |
Entity Address, Address Line One | 5565 Glenridge Connector Ste. 450 | |
Entity Address, City or Town | Atlanta | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30342 | |
City Area Code | 770 | |
Local Phone Number | 418-8800 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | PDM | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 123,999,948 | |
Entity Central Index Key | 0001042776 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Real estate assets, at cost: | ||
Land | $ 552,744 | $ 559,384 |
Buildings and improvements, less accumulated depreciation of $1,080,613 and $1,039,136 as of June 30, 2024 and December 31, 2023, respectively | 2,710,583 | 2,749,113 |
Intangible lease assets, less accumulated amortization of $80,251 and $88,066 as of June 30, 2024 and December 31, 2023, respectively | 70,764 | 82,588 |
Construction in progress | 115,213 | 85,239 |
Real estate, held-for-sale | 18,726 | 36,203 |
Total real estate assets | 3,468,030 | 3,512,527 |
Cash and cash equivalents | 138,454 | 825 |
Tenant receivables | 7,619 | 7,915 |
Straight-line rent receivables | 186,913 | 182,856 |
Restricted cash and escrows | 5,368 | 3,381 |
Prepaid expenses and other assets | 25,224 | 27,559 |
Goodwill | 53,491 | 53,491 |
Interest rate swaps | 3,578 | 3,032 |
Deferred lease costs, less accumulated amortization of $201,008 and $223,248 as of June 30, 2024 and December 31, 2023, respectively | 266,702 | 262,283 |
Other assets held for sale, net | 3,264 | 3,213 |
Total assets | 4,158,643 | 4,057,082 |
Liabilities: | ||
Unsecured debt, net of unamortized discount and debt issuance costs of $22,431 and $15,437 as of June 30, 2024 and December 31, 2023, respectively | 2,027,569 | 1,858,717 |
Secured debt | 194,169 | 195,879 |
Accounts payable, accrued expenses and accrued capital expenditures | 140,793 | 131,516 |
Dividends payable | 0 | 15,143 |
Deferred income | 100,131 | 89,930 |
Intangible lease liabilities, less accumulated amortization of $31,054 and $35,811 as of June 30, 2024 and December 31, 2023, respectively | 37,657 | 42,925 |
Total liabilities | 2,500,319 | 2,334,110 |
Commitments and Contingencies (Note 7) | 0 | 0 |
Stockholders’ Equity: | ||
Shares-in-trust, 150,000,000 shares authorized; none outstanding as of June 30, 2024 or December 31, 2023 | 0 | 0 |
Preferred stock, no par value, 100,000,000 shares authorized; none outstanding as of June 30, 2024 or December 31, 2023 | 0 | 0 |
Common stock, $0.01 par value, 750,000,000 shares authorized; 123,994,991 and 123,715,298 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively | 1,240 | 1,237 |
Additional paid-in capital | 3,719,419 | 3,716,742 |
Cumulative distributions in excess of earnings | (2,055,697) | (1,987,147) |
Accumulated other comprehensive loss | (8,180) | (9,418) |
Piedmont stockholders’ equity | 1,656,782 | 1,721,414 |
Noncontrolling interest | 1,542 | 1,558 |
Total stockholders’ equity | 1,658,324 | 1,722,972 |
Total liabilities and stockholders’ equity | $ 4,158,643 | $ 4,057,082 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Assets: | ||
Buildings and improvements, accumulated depreciation | $ 1,080,613 | $ 1,039,136 |
Intangible lease assets, accumulated amortization | 80,251 | 88,066 |
Deferred lease costs, accumulated amortization | 201,008 | 223,248 |
Liabilities: | ||
Unamortized discounts and debt issuance costs | 22,431 | 15,437 |
Intangible lease liabilities, accumulated amortization | $ 31,054 | $ 35,811 |
Stockholders’ Equity: | ||
Shares-in-trust, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Shares-in-trust, shares outstanding (in shares) | 0 | 0 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 750,000,000 | 750,000,000 |
Common stock, shares issued (in shares) | 123,994,991 | 123,715,298 |
Common stock, shares outstanding (in shares) | 123,994,991 | 123,715,298 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenues: | ||||
Rental and tenant reimbursement revenue | $ 136,670 | $ 137,503 | $ 275,751 | $ 274,332 |
Total revenues | 143,262 | 143,072 | 287,800 | 285,439 |
Expenses: | ||||
Property operating costs | 58,565 | 58,368 | 118,009 | 116,159 |
Depreciation | 38,814 | 36,475 | 77,683 | 72,272 |
Amortization | 18,097 | 21,333 | 36,217 | 43,364 |
Impairment charges | 0 | 0 | 18,432 | 0 |
General and administrative | 8,352 | 7,279 | 15,964 | 14,970 |
Expenses | 123,828 | 123,455 | 266,305 | 246,765 |
Other income (expense): | ||||
Interest expense | (29,569) | (23,389) | (59,283) | (45,466) |
Other income | 328 | 1,787 | 606 | 3,443 |
Loss on early extinguishment of debt | 0 | 0 | (386) | 0 |
Other income (expense): | (29,241) | (21,602) | (59,063) | (42,023) |
Net loss | (9,807) | (1,985) | (37,568) | (3,349) |
Net income applicable to noncontrolling interest | (2) | (3) | (4) | (6) |
Net loss applicable to Piedmont | $ (9,809) | $ (1,988) | $ (37,572) | $ (3,355) |
Per share information – basic and diluted: | ||||
Net loss applicable to common stockholders - basic (in dollars per share) | $ (0.08) | $ (0.02) | $ (0.30) | $ (0.03) |
Net loss applicable to common stockholders - diluted (in dollars per share) | $ (0.08) | $ (0.02) | $ (0.30) | $ (0.03) |
Weighted-average common shares outstanding – basic (in shares) | 123,953,442 | 123,671,261 | 123,876,562 | 123,610,989 |
Weighted-average common shares outstanding – diluted (in shares) | 123,953,442 | 123,671,261 | 123,876,562 | 123,610,989 |
Property management fee revenue | ||||
Revenues: | ||||
Property management fee revenue and other property related income | $ 482 | $ 437 | $ 639 | $ 944 |
Other property related income | ||||
Revenues: | ||||
Property management fee revenue and other property related income | $ 6,110 | $ 5,132 | $ 11,410 | $ 10,163 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss applicable to Piedmont | $ (9,809) | $ (1,988) | $ (37,572) | $ (3,355) |
Other comprehensive income/(loss): | ||||
Effective portion of gain on derivative instruments that are designated and qualify as cash flow hedges (See Note 4) | 828 | 4,107 | 3,260 | 3,022 |
Minus: Reclassification of net gain included in net income (See Note 4) | (918) | (818) | (2,022) | (1,320) |
Other comprehensive income/(loss) | (90) | 3,289 | 1,238 | 1,702 |
Comprehensive income/(loss) applicable to Piedmont | $ (9,899) | $ 1,301 | $ (36,334) | $ (1,653) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Cumulative Distributions in Excess of Earnings | Accumulated Other Comprehensive Income/(Loss) | Non- controlling Interest |
Beginning balance (in shares) at Dec. 31, 2022 | 123,440,000 | |||||
Beginning balance at Dec. 31, 2022 | $ 1,849,255 | $ 1,234 | $ 3,711,005 | $ (1,855,893) | $ (8,679) | $ 1,588 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends to common stockholders and stockholders of subsidiaries | (51,960) | (51,940) | (20) | |||
Shares issued and amortized under the 2007 Omnibus Incentive Plan, net of tax (in shares) | 252,000 | |||||
Shares issued and amortized under the 2007 Omnibus Incentive Plan, net of tax | 1,686 | $ 3 | 1,683 | |||
Net income applicable to noncontrolling interest | 6 | 6 | ||||
Net loss applicable to Piedmont | (3,355) | (3,355) | ||||
Other comprehensive income (loss) | 1,702 | 1,702 | ||||
Ending balance (in shares) at Jun. 30, 2023 | 123,692,000 | |||||
Ending balance at Jun. 30, 2023 | 1,797,334 | $ 1,237 | 3,712,688 | (1,911,188) | (6,977) | 1,574 |
Beginning balance (in shares) at Mar. 31, 2023 | 123,643,000 | |||||
Beginning balance at Mar. 31, 2023 | 1,820,097 | $ 1,236 | 3,710,767 | (1,883,225) | (10,266) | 1,585 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends to common stockholders and stockholders of subsidiaries | (25,989) | (25,975) | (14) | |||
Shares issued and amortized under the 2007 Omnibus Incentive Plan, net of tax (in shares) | 49,000 | |||||
Shares issued and amortized under the 2007 Omnibus Incentive Plan, net of tax | 1,922 | $ 1 | 1,921 | |||
Net income applicable to noncontrolling interest | 3 | 3 | ||||
Net loss applicable to Piedmont | (1,988) | (1,988) | ||||
Other comprehensive income (loss) | 3,289 | 3,289 | ||||
Ending balance (in shares) at Jun. 30, 2023 | 123,692,000 | |||||
Ending balance at Jun. 30, 2023 | $ 1,797,334 | $ 1,237 | 3,712,688 | (1,911,188) | (6,977) | 1,574 |
Beginning balance (in shares) at Dec. 31, 2023 | 123,715,298 | 123,715,000 | ||||
Beginning balance at Dec. 31, 2023 | $ 1,722,972 | $ 1,237 | 3,716,742 | (1,987,147) | (9,418) | 1,558 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Costs of issuance of common stock | (89) | (89) | ||||
Dividends to common stockholders and stockholders of subsidiaries | (30,998) | (30,978) | (20) | |||
Shares issued and amortized under the 2007 Omnibus Incentive Plan, net of tax (in shares) | 280,000 | |||||
Shares issued and amortized under the 2007 Omnibus Incentive Plan, net of tax | 2,769 | $ 3 | 2,766 | |||
Net income applicable to noncontrolling interest | 4 | 4 | ||||
Net loss applicable to Piedmont | (37,572) | (37,572) | ||||
Other comprehensive income (loss) | $ 1,238 | 1,238 | ||||
Ending balance (in shares) at Jun. 30, 2024 | 123,994,991 | 123,995,000 | ||||
Ending balance at Jun. 30, 2024 | $ 1,658,324 | $ 1,240 | 3,719,419 | (2,055,697) | (8,180) | 1,542 |
Beginning balance (in shares) at Mar. 31, 2024 | 123,888,000 | |||||
Beginning balance at Mar. 31, 2024 | 1,681,912 | $ 1,239 | 3,717,599 | (2,030,389) | (8,090) | 1,553 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Costs of issuance of common stock | (89) | (89) | ||||
Dividends to common stockholders and stockholders of subsidiaries | (15,512) | (15,499) | (13) | |||
Shares issued and amortized under the 2007 Omnibus Incentive Plan, net of tax (in shares) | 107,000 | |||||
Shares issued and amortized under the 2007 Omnibus Incentive Plan, net of tax | 1,910 | $ 1 | 1,909 | |||
Net income applicable to noncontrolling interest | 2 | 2 | ||||
Net loss applicable to Piedmont | (9,809) | (9,809) | ||||
Other comprehensive income (loss) | $ (90) | (90) | ||||
Ending balance (in shares) at Jun. 30, 2024 | 123,994,991 | 123,995,000 | ||||
Ending balance at Jun. 30, 2024 | $ 1,658,324 | $ 1,240 | $ 3,719,419 | $ (2,055,697) | $ (8,180) | $ 1,542 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends to common stockholders per share (in dollars per share) | $ 0.125 | $ 0.21 | $ 0.25 | $ 0.42 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (37,568) | $ (3,349) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation | 77,683 | 72,272 |
Amortization of debt issuance costs inclusive of settled interest rate swaps | 3,040 | 2,744 |
Other amortization | 33,364 | 39,135 |
Impairment charges | 18,432 | 0 |
Loss on early extinguishment of debt | 386 | 0 |
Reversal of general reserve for uncollectible accounts | 0 | (400) |
Stock compensation expense | 4,082 | 3,925 |
Changes in assets and liabilities: | ||
Increase in tenant and straight-line rent receivables | (7,054) | (8,692) |
Decrease/(increase) in prepaid expenses and other assets | 2,005 | (6,040) |
Decrease in accounts payable and accrued expenses | (1,021) | (4,641) |
(Decrease)/increase in deferred income | (3,162) | 264 |
Net cash provided by operating activities | 90,187 | 95,218 |
Cash Flows from Investing Activities: | ||
Capitalized expenditures | (96,991) | (71,650) |
Net sales proceeds from wholly-owned properties | 53,308 | 0 |
Deferred lease costs paid | (23,839) | (16,940) |
Net cash used in investing activities | (67,522) | (88,590) |
Cash Flows from Financing Activities: | ||
Debt issuance and other costs paid | (1,931) | (643) |
Proceeds from debt | 918,972 | 499,603 |
Repayments of debt | (752,865) | (436,000) |
Costs of issuance of common stock | (89) | 0 |
Value of shares withheld for payment of taxes related to employee stock compensation | (995) | (1,648) |
Dividends paid | (46,141) | (77,318) |
Net cash provided by/(used in) financing activities | 116,951 | (16,006) |
Net increase/(decrease) in cash, cash equivalents, and restricted cash and escrows | 139,616 | (9,378) |
Cash, cash equivalents, and restricted cash and escrows, beginning of period | 4,206 | 19,600 |
Cash, cash equivalents, and restricted cash and escrows, end of period | $ 143,822 | $ 10,222 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Piedmont Office 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 June 30, 2024, Piedmont owned and operated a portfolio comprised of 31 in-service projects and three redevelopment projects. The in-service office projects total approximately 15.7 million square feet (unaudited) of primarily Class A office space and were 87.3% leased as of June 30, 2024. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 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, 2023. 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 materially differ from those estimates. 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 properties 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 six months ended June 30, 2024 and 2023, respectively, as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Fixed payments $ 111,581 $ 112,238 $ 224,894 $ 224,798 Variable payments 25,089 25,265 50,857 49,534 Total Rental and Tenant Reimbursement Revenue $ 136,670 $ 137,503 $ 275,751 $ 274,332 Piedmont is a lessee of office space in one building owned by a third party. Piedmont's right of use asset and corresponding lease liability under the lease was approximately $30,000 and $100,000 as of June 30, 2024 and December 31, 2023, respectively. The right of use asset is recorded as a component of prepaid expenses and other assets, whereas the corresponding liability is presented as a component of accounts payable, accrued expenses, and accrued capital expenditures in the accompanying consolidated balance sheets. For the three months ended and six months ended June 30, 2024 and 2023, Piedmont recognized approximately $20,000 and $40,000, respectively, of operating lease costs related to its office space lease. As of June 30, 2024, the remaining lease term of Piedmont's right of use asset is approximately 5 months, and the discount rate is 3.86%. Recent Accounting Pronouncements Segment Expense Disclosure The Financial Accounting Standards Board (the "FASB") has issued Accounting Standards Update ("ASU") No. 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures ("ASU 2023-07). ASU 2023-07 requires expanded disclosure of significant segment expenses which are regularly provided to the chief operating decision maker ("CODM"); all entities that have a single reportable segment must provide existing segment disclosures; disclosure of the title and position of the CODM; and entities must disclose the amounts and a qualitative description of "other segment items", representing the difference between segment revenue less segment expenses reported in segment profit or loss. ASU 2023-07 is effective for Piedmont beginning with the Form 10-K for the year ended December 31, 2024, and subsequent interim periods thereafter. 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 2023-07. Income Tax Disclosure 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 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. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt During the three months ended June 30, 2024, Piedmont OP issued $400 million in aggregate principal amount of 6.875% senior notes (the “$400 Million Unsecured Senior Notes”), which mature on July 15, 2029. Upon issuance of the $400 million Unsecured Senior Notes, Piedmont OP received net proceeds of $396 million, reflecting a discount of approximately $4 million which will be amortized to interest expense over the 5-year term of the $400 Million Unsecured Senior Notes using the effective interest method. The $400 Million Unsecured Senior Notes are fully and unconditionally guaranteed by Piedmont. Interest on the $400 Million Unsecured Senior Notes is payable semi-annually on January 15 and July 15 of each year commencing January 15, 2025, and is subject to adjustment if Piedmont's corporate credit rating falls below investment grade, as defined in the credit agreement. The $400 Million Unsecured Senior Notes are subject to certain typical covenants that, subject to certain exceptions including (a) a limitation on the ability of Piedmont and Piedmont OP to, among other things, incur additional secured and unsecured indebtedness; (b) a limitation on the ability of Piedmont and Piedmont OP to merge, consolidate, sell, lease or otherwise dispose of their properties and assets substantially as an entirety; and (c) a requirement that Piedmont maintain a pool of unencumbered assets. The net proceeds from the $400 Million Unsecured Senior Notes were used to repay the balance outstanding under Piedmont's $600 Million Unsecured 2022 Line of Credit and the remaining $25 million outstanding on its $215 Million Unsecured 2023 Term Loan (see discussion below). Piedmont intends to use the remaining proceeds from the $400 Million Unsecured Senior Notes, along with any sales proceeds from any potential property dispositions and Piedmont's $600 Million Unsecured 2022 Line of Credit, to repay the $250 Million Unsecured 2018 Term Loan that matures in March of 2025. Also, during the six months ended June 30, 2024, Piedmont OP entered into a new $200 Million Unsecured 2024 Term Loan and used the net proceeds, along with its $600 Million Unsecured 2022 Line of Credit, to repay the remaining $100 million balance on the $200 Million Unsecured 2022 Term Loan Facility and $190 million of the $215 Million Unsecured 2023 Term Loan, resulting in a loss on early extinguishment of debt of approximately $0.4 million related to unamortized financing costs. The remaining $25 million of the $215 Million Unsecured 2023 Term Loan was extended and ultimately paid off with the proceeds of the aforementioned $400 Million Unsecured Senior Notes. The term of the $200 Million Unsecured 2024 Term Loan is three years, with a maturity date of January 29, 2027. Piedmont may prepay the loan in whole or in part, at any time without premium or penalty. The stated interest rate spread over Adjusted SOFR can vary from 0.85% to 1.70% based upon the then current credit rating of Piedmont or Piedmont OP, whichever is higher. As of June 30, 2024, the applicable interest rate spread on the loan was 1.30%, and the effective rate was 6.22%. The $200 Million Unsecured 2024 Term Loan has certain financial covenants that require, among other things, the maintenance of an unencumbered interest rate coverage ratio of at least 1.75, an unencumbered leverage ratio of at least 1.60, a fixed charge coverage ratio of at least 1.50, a leverage ratio of no more than 0.60, and a secured debt ratio of no more than 0.40. Finally, during the six months ended June 30, 2024, Piedmont repaid the remaining $50.2 million balance of the $400 Million Unsecured Senior Notes due 2024 with proceeds from the disposition of the One Lincoln Park building (see Note 8 below). The following table summarizes the terms of Piedmont’s consolidated indebtedness outstanding as of June 30, 2024 and December 31, 2023 (in thousands): Facility (1) Stated Rate (2) Effective Rate (3) Maturity Amount Outstanding as of June 30, 2024 December 31, 2023 Secured (Fixed) $197 Million Fixed Rate Mortgage 4.10 % 4.10 % 10/1/2028 $ 194,169 $ 195,879 Subtotal 194,169 195,879 Unsecured (Variable and Fixed) $400 Million Unsecured Senior Notes due 2024 4.45 % 4.10 % 3/15/2024 — 50,154 $200 Million Unsecured 2022 Term Loan Facility SOFR + 1.25% 6.70 % 12/16/2024 — 100,000 $215 Million Unsecured 2023 Term Loan SOFR + 1.30% 6.71 % 1/31/2025 — 215,000 $250 Million Unsecured 2018 Term Loan SOFR + 1.20% 4.79 % 3/31/2025 (4) 250,000 250,000 $600 Million Unsecured 2022 Line of Credit SOFR + 1.04% 6.45 % (5) 6/30/2026 (6) — 59,000 $200 Million Unsecured 2024 Term Loan SOFR + 1.30% 6.22 % (7) 1/29/2027 200,000 — $600 Million Unsecured Senior Notes due 2028 9.25 % 9.25 % 7/20/2028 600,000 600,000 $400 Million Unsecured Senior Notes due 2029 6.88 % 7.11 % 7/15/2029 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 (22,431) (15,437) Subtotal/Weighted Average 6.26 % $ 2,027,569 $ 1,858,717 Total/Weighted Average 6.08 % $ 2,221,738 $ 2,054,596 (1) All of Piedmont’s outstanding debt as of June 30, 2024 is unsecured and interest-only until maturity, except for the $197 Million Fixed Rate Mortgage, secured by 1180 Peachtree Street. (2) The all-in stated interest rates for the SOFR selections are comprised of the relevant adjusted SOFR rate (calculated as the base SOFR interest rate plus a fixed adjustment of 0.10%) and is subject to an additional spread over the selected rate based on Piedmont’s or Piedmont OP's current credit rating. (3) Effective rate after consideration of settled or in-place interest rate swap agreements and issuance discounts. (4) Piedmont currently intends to repay the outstanding balance on debt due within one year with cash on hand, through selective property dispositions, and/or with borrowings under its existing $600 Million Unsecured 2022 Line of Credit. (5) 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. (6) Piedmont may extend the term for up to one (7) This term loan has a stated variable rate; however, Piedmont has entered into interest rate swap agreements which effectively fix the interest rate on $80 million of the term loan to 5.50% through February 1, 2026, assuming no change in Piedmont's or Piedmont OP's credit rating. For the remaining variable portion of the loan, Piedmont may select from multiple interest rate options, including the prime rate and various length SOFR locks. See Note 4 for disclosures of Piedmont's derivative instruments. Piedmont made interest payments on all debt facilities, including interest rate swap cash settlements, of approximately $16.7 million and $21.6 million for the three months ended June 30, 2024 and 2023, respectively, and approximately $62.7 million and $45.1 million for the six months ended June 30, 2024 and 2023, respectively. Also, Piedmont capitalized interest of approximately $3.0 million and $1.4 million for the three months ended June 30, 2024 and 2023, respectively, and approximately $5.8 million and $2.6 million for the six months ended June 30, 2024 and 2023, respectively. As of June 30, 2024, 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 June 30, 2024. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 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 six months ended June 30, 2024, Piedmont entered into two interest rate swap agreements to partially hedge the risk of changes in the interest-related cash flows associated with the $200 Million Unsecured 2024 Term Loan (see Note 3 above). 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 19 months. A detail of Piedmont’s interest rate derivatives outstanding as of June 30, 2024 is as follows: Interest Rate Derivatives: Number of Swap Agreements Associated Debt Instrument Total Notional Amount Effective Date Maturity Date Interest rate swaps 2 $250 Million Unsecured 2018 Term Loan $ 100 3/29/2018 3/31/2025 Interest rate swaps 3 $250 Million Unsecured 2018 Term Loan 75 12/2/2022 3/31/2025 Interest rate swaps 3 $250 Million Unsecured 2018 Term Loan 75 12/12/2022 3/31/2025 Interest rate swaps 2 $200 Million Unsecured 2024 Term Loan 80 2/1/2024 2/1/2026 Total $ 330 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 June 30, 2024 and December 31, 2023, respectively, is as follows (in thousands): Interest rate swaps classified as: June 30, December 31, Gross derivative assets $ 3,578 $ 3,032 Gross derivative liabilities — — Net derivative asset $ 3,578 $ 3,032 The gain 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 six months ended June 30, 2024 and 2023, respectively, is as follows (in thousands): Three Months Ended Six Months Ended Interest Rate Swaps in Cash Flow Hedging Relationships June 30, June 30, June 30, June 30, Amount of gain recognized in OCI $ 828 $ 4,107 $ 3,260 $ 3,022 Amount of previously recorded gain reclassified from OCI into interest expense $ 918 $ 818 $ 2,022 $ 1,320 Total amount of interest expense presented in the consolidated statements of operations $ (29,569) $ (23,389) $ (59,283) $ (45,466) Total amount of loss on early extinguishment of debt presented in the consolidated statements of operations $ — $ — $ (386) $ — Piedmont estimates that approximately $1.6 million will be reclassified from OCI as a decrease in 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. However, as of June 30, 2024, all of Piedmont's interest rate swap agreements are in an asset position. Additionally, Piedmont has rights of set-off under certain of its derivative agreements related to potential te rmination fees and amounts payable under the agreements, if a termination were to occur. |
Fair Value Measurement of Finan
Fair Value Measurement of Financial Instruments | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement of Financial Instruments | 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 June 30, 2024 and December 31, 2023, respectively (in thousands): June 30, 2024 December 31, 2023 Financial Instrument Carrying Value Estimated Level Within Fair Value Hierarchy Carrying Value Estimated Level Within Fair Value Hierarchy Assets: Cash and cash equivalents (1) $ 138,454 $ 138,454 Level 1 $ 825 $ 825 Level 1 Tenant receivables, net (1) $ 7,619 $ 7,619 Level 1 $ 7,915 $ 7,915 Level 1 Restricted cash and escrows (1) $ 5,368 $ 5,368 Level 1 $ 3,381 $ 3,381 Level 1 Interest rate swaps $ 3,578 $ 3,578 Level 2 $ 3,032 $ 3,032 Level 2 Liabilities: Accounts payable and accrued expenses (1) $ 13,200 $ 13,200 Level 1 $ 49,706 $ 49,706 Level 1 Debt, net $ 2,221,738 $ 2,151,483 Level 2 $ 2,054,596 $ 1,953,447 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 June 30, 2024 and December 31, 2023; 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 June 30, 2024 and December 31, 2023. 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 June 30, 2024 and December 31, 2023, 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. |
Impairment Charges
Impairment Charges | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairment Charges | Impairment Charges During the six months ended June 30, 2024, management shortened the intended hold period for the 750 West John Carpenter Freeway building located in Irving, Texas 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. Additionally during the six months ended June 30, 2024, Piedmont recognized an impairment loss of approximately $0.9 million in conjunction with the sale of One Lincoln Park located in Dallas, Texas. The offer to purchase, contractual negotiations, due diligence, and completion of the sale all occurred during six months ended June 30, 2024 (see Note 8 for further details). |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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 June 30, 2024, Piedmont had two individually significant tenant allowances 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, whic |
Property Disposition and Assets
Property Disposition and Assets Held for Sale | 6 Months Ended |
Jun. 30, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Property Disposition and Assets Held for Sale | Property Disposition and Assets Held for Sale During the six months ended June 30, 2024, Piedmont sold the One Lincoln Park building located in Dallas, Texas, to an unrelated, third-party owner/user for net sale proceeds of approximately $53.3 million which were used to repay the remaining outstanding balance of approximately $50.2 million on the $400 Million Unsecured Senior Notes due 2024. As of June 30, 2024, Piedmont was under a binding contract to sell a 46% leased, 12-story, approximately 315,000 square foot office building located at 750 West John Carpenter Freeway in Dallas, Texas for $23 million. Consequently, the building, which is assigned to the Dallas geographic reportable segment, met the criteria for held for sale classification as of June 30, 2024 and the assets of the property are presented as held for sale as of both June 30, 2024 and December 31, 2023 for comparability in the accompanying consolidated balance sheets. Details of amounts held for sale are presented below (in thousands): June 30, 2024 December 31, 2023 Real estate assets held for sale, net: Land $ 7,860 $ 7,860 Building and improvements, less accumulated depreciation of $7,821 and $7,376 as of June 30, 2024 and December 31, 2023, respectively 9,832 27,616 Construction in progress 1,034 727 Total real estate assets held for sale, net $ 18,726 $ 36,203 Other assets held for sale, net: Straight-line rent receivables $ 948 $ 983 Prepaid expenses and other assets 1,080 908 Deferred lease costs, less accumulated amortization of $752 and $666 as of June 30, 2024 and December 31, 2023, respectively 1,236 1,322 Total other assets held for sale, net $ 3,264 $ 3,213 |
Stock Based Compensation
Stock Based Compensation | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Based Compensation | Stock Based Compensation On an annual basis, 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 three 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 six months ended June 30, 2024 is as follows: Shares Weighted-Average Grant Date Fair Value Unvested and Potential Stock Awards as of December 31, 2023 1,094,297 $ 11.35 Deferred Stock Awards Granted 644,002 $ 6.60 Performance Stock Awards Granted 641,985 $ 7.64 Change in Estimated Potential Share Awards based on TSR Performance 1,092,402 $ 9.92 Performance Stock Awards Vested (5,734) $ 15.40 Deferred Stock Awards Vested (427,426) $ 10.76 Deferred Stock Awards Forfeited (17,665) $ 11.06 Unvested and Potential Stock Awards as of June 30, 2024 3,021,861 $ 9.11 The following table provides additional information regarding stock award activity during the three and six months ended June 30, 2024 and 2023, respectively (in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Weighted-Average Grant Date Fair Value per share of Deferred Stock Granted During the Period $ 6.95 $ 6.57 $ 6.60 $ 9.60 Total Grant Date Fair Value of Deferred Stock Vested During the Period $ 800 $ 793 $ 4,601 $ 4,866 A detail of Piedmont’s outstanding stock awards and programs as of June 30, 2024 is as follows: Date of grant Type of Award Net Shares Granted (1) Grant Vesting Schedule Unvested Shares May 3, 2019 Deferred Stock Award 26,385 (2) $ 21.04 Of the shares granted, 20% vested or will vest on July 1, 2020, 2021, 2022, 2023 and 2024, respectively. 9,505 February 10, 2022 Deferred Stock Award 145,674 $ 16.85 Of the shares granted, 25% vested on the date of grant, and 25% vested or will vest on February 10, 2023, 2024, and 2025, respectively. 52,131 February 17, 2022 2022-2024 Performance Share Program — $ 17.77 Shares awarded, if any, will vest immediately upon determination of award in 2025. 155,192 (3) February 13, 2023 Deferred Stock Award 347,945 $ 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. 205,841 February 23, 2023 2023-2025 Performance Share Program — $ 12.37 Shares awarded, if any, will vest immediately upon determination of award in 2026. 380,627 (3) February 23, 2023 Deferred Stock Award 372,394 $ 9.47 Of the shares granted, 25% will vest on February 23, 2024, 2025, 2026, and 2027, respectively. 290,593 February 20, 2024 Deferred Stock Award 557,674 $ 6.55 Of the shares granted, 25% will vest on February 20, 2025, 2026, 2027, and 2028, respectively. 557,674 February 20, 2024 2024-2026 Performance Share Program — $ 7.64 Shares awarded, if any, will vest immediately upon determination of award in 2027. 1,283,970 (3) May 7, 2024 Deferred Stock Award-Board of Directors 86,328 $ 6.95 Of the shares granted, 100% will vest on the earlier of the 2025 Annual Meeting or May 7, 2025. 86,328 Total 3,021,861 (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 June 30, 2024. (2) Reflects a special, one-time deferred stock award to Piedmont's Chief Executive Officer effective on July 1, 2019, the date of his promotion to the position, which vested in ratable installments over a five year period beginning on the anniversary of the grant date. (3) Estimated based on Piedmont's cumulative TSR for the respective performance period through June 30, 2024. Share estimates are subject to change in future periods based upon Piedmont's relative TSR performance compared to its peer group of office REITs. During the three months ended June 30, 2024 and 2023, Piedmont recognized approximately $2.2 million and $2.2 million, respectively, of compensation expense related to the amortization of unvested and potential stock awards. During the six months ended June 30, 2024 and 2023, Piedmont recognized approximately $4.1 million and $3.9 million, respectively, of compensation expense related to the amortization of unvested and potential stock awards. During the six months ended June 30, 2024, 279,693 shares (net of shares surrendered upon vesting to satisfy required minimum tax withholding obligations) were issued to employees and independent directors. As of June 30, 2024, approximately $16.3 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 1.8 years. |
Supplemental Disclosures for th
Supplemental Disclosures for the Statement of Consolidated Cash Flows | 6 Months Ended |
Jun. 30, 2024 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosures for the Statement of Consolidated Cash Flows | Supplemental Disclosures for the Statement of Consolidated Cash Flows Certain non-cash investing and financing activities for the six months ended June 30, 2024 and 2023 (in thousands) are outlined below: Six Months Ended June 30, June 30, Tenant improvements funded by tenants $ 13,845 $ 29,574 Accrued capital expenditures and deferred lease costs $ 35,294 $ 24,655 Change in accrued dividends $ (15,143) $ (25,358) Change in accrued deferred financing costs $ (232) $ (44) 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 six months ended June 30, 2024 and 2023, to the consolidated balance sheets for the respective period (in thousands): 2024 2023 Cash and cash equivalents, beginning of period $ 825 $ 16,536 Restricted cash and escrows, beginning of period 3,381 3,064 Total cash, cash equivalents, and restricted cash and escrows as presented in the accompanying consolidated statement of cash flows, beginning of period $ 4,206 $ 19,600 Cash and cash equivalents, end of period $ 138,454 $ 5,167 Restricted cash and escrows, end of period 5,368 5,055 Total cash, cash equivalents, and restricted cash and escrows as presented in the accompanying consolidated statement of cash flows, end of period $ 143,822 $ 10,222 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. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per ShareAs Piedmont recognized a net loss for both the three and six months ended June 30, 2024 and 2023, earnings per share is computed using basic weighted-average common shares outstanding. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Piedmont's President and Chief Executive Officer has been identified as Piedmont's chief operating decision maker ("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 June 30, 2024, Piedmont also owned two properties in Houston that do not meet the definition of an operating or reportable segment as the CODM does not regularly review these properties 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 properties 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. Accrual-based net operating income ("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 from lease revenues and other property related income. 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 lease revenue and other property related income included in NOI by geographic reportable segment (in thousands): Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Atlanta $ 43,340 $ 40,210 $ 85,110 $ 79,427 Dallas 26,818 27,779 55,523 56,061 Orlando 15,006 15,464 30,355 30,877 Northern Virginia/Washington, D.C. 15,142 14,880 30,724 29,779 Minneapolis 12,524 15,463 25,640 30,425 New York 13,619 13,249 27,310 26,734 Boston 11,295 10,516 22,438 20,766 Total reportable segments 137,744 137,561 277,100 274,069 Other 5,518 5,511 10,700 11,370 Total Revenues $ 143,262 $ 143,072 $ 287,800 $ 285,439 The following table presents NOI by geographic reportable segment (in thousands): Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Atlanta $ 27,759 $ 26,096 $ 53,903 $ 51,282 Dallas 15,510 15,203 32,045 30,978 Orlando 8,055 9,286 17,067 18,551 Northern Virginia/Washington, D.C. 9,368 8,993 18,680 17,973 Minneapolis 5,882 8,233 12,512 16,456 New York 7,744 7,351 14,994 14,722 Boston 7,146 6,458 14,327 12,791 Total reportable segments 81,464 81,620 163,528 162,753 Other 3,085 3,046 6,227 6,412 Total NOI $ 84,549 $ 84,666 $ 169,755 $ 169,165 A reconciliation of Net loss applicable to Piedmont to NOI is presented below (in thousands): Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Net loss applicable to Piedmont $ (9,809) $ (1,988) $ (37,572) $ (3,355) Management fee revenue (1) (256) (254) (252) (546) Depreciation and amortization 56,911 57,808 113,901 115,636 Impairment charges — — 18,432 — General and administrative expenses 8,352 7,279 15,964 14,970 Interest expense 29,569 23,389 59,283 45,466 Other income (220) (1,571) (391) (3,012) Loss on early extinguishment of debt — — 386 — Net income applicable to noncontrolling interest 2 3 4 6 Total NOI $ 84,549 $ 84,666 $ 169,755 $ 169,165 (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. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event Third Quarter Dividend Declaration On July 25, 2024, the board of directors of Piedmont declared a dividend for the third quarter of 2024 in the amount of $0.125 per common share outstanding to stockholders of record as of the close of business on August 23, 2024. Such dividend will be paid on September 20, 2024. Sale of 750 West John Carpenter Freeway On July 23, 2024, Piedmont sold 750 West John Carpenter Freeway, in Dallas, Texas for $23 million, to an unrelated third party. The building is a 12-story, approximately 315,000 square foot office building which was approximately 46% leased as of June 30, 2024. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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. |
Principles of Consolidation | 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, 2023. 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 | 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 materially differ from those estimates. |
Income Taxes | 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 properties in certain locations, as well as operations conducted by its taxable REIT subsidiary which have been provided for in the financial statements. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Segment Expense Disclosure The Financial Accounting Standards Board (the "FASB") has issued Accounting Standards Update ("ASU") No. 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures ("ASU 2023-07). ASU 2023-07 requires expanded disclosure of significant segment expenses which are regularly provided to the chief operating decision maker ("CODM"); all entities that have a single reportable segment must provide existing segment disclosures; disclosure of the title and position of the CODM; and entities must disclose the amounts and a qualitative description of "other segment items", representing the difference between segment revenue less segment expenses reported in segment profit or loss. ASU 2023-07 is effective for Piedmont beginning with the Form 10-K for the year ended December 31, 2024, and subsequent interim periods thereafter. 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 2023-07. Income Tax Disclosure 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 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. |
Risk Management Objective of Using Derivatives | 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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Fixed and Variable Lease Revenue | 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 six months ended June 30, 2024 and 2023, respectively, as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Fixed payments $ 111,581 $ 112,238 $ 224,894 $ 224,798 Variable payments 25,089 25,265 50,857 49,534 Total Rental and Tenant Reimbursement Revenue $ 136,670 $ 137,503 $ 275,751 $ 274,332 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table summarizes the terms of Piedmont’s consolidated indebtedness outstanding as of June 30, 2024 and December 31, 2023 (in thousands): Facility (1) Stated Rate (2) Effective Rate (3) Maturity Amount Outstanding as of June 30, 2024 December 31, 2023 Secured (Fixed) $197 Million Fixed Rate Mortgage 4.10 % 4.10 % 10/1/2028 $ 194,169 $ 195,879 Subtotal 194,169 195,879 Unsecured (Variable and Fixed) $400 Million Unsecured Senior Notes due 2024 4.45 % 4.10 % 3/15/2024 — 50,154 $200 Million Unsecured 2022 Term Loan Facility SOFR + 1.25% 6.70 % 12/16/2024 — 100,000 $215 Million Unsecured 2023 Term Loan SOFR + 1.30% 6.71 % 1/31/2025 — 215,000 $250 Million Unsecured 2018 Term Loan SOFR + 1.20% 4.79 % 3/31/2025 (4) 250,000 250,000 $600 Million Unsecured 2022 Line of Credit SOFR + 1.04% 6.45 % (5) 6/30/2026 (6) — 59,000 $200 Million Unsecured 2024 Term Loan SOFR + 1.30% 6.22 % (7) 1/29/2027 200,000 — $600 Million Unsecured Senior Notes due 2028 9.25 % 9.25 % 7/20/2028 600,000 600,000 $400 Million Unsecured Senior Notes due 2029 6.88 % 7.11 % 7/15/2029 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 (22,431) (15,437) Subtotal/Weighted Average 6.26 % $ 2,027,569 $ 1,858,717 Total/Weighted Average 6.08 % $ 2,221,738 $ 2,054,596 (1) All of Piedmont’s outstanding debt as of June 30, 2024 is unsecured and interest-only until maturity, except for the $197 Million Fixed Rate Mortgage, secured by 1180 Peachtree Street. (2) The all-in stated interest rates for the SOFR selections are comprised of the relevant adjusted SOFR rate (calculated as the base SOFR interest rate plus a fixed adjustment of 0.10%) and is subject to an additional spread over the selected rate based on Piedmont’s or Piedmont OP's current credit rating. (3) Effective rate after consideration of settled or in-place interest rate swap agreements and issuance discounts. (4) Piedmont currently intends to repay the outstanding balance on debt due within one year with cash on hand, through selective property dispositions, and/or with borrowings under its existing $600 Million Unsecured 2022 Line of Credit. (5) 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. (6) Piedmont may extend the term for up to one (7) This term loan has a stated variable rate; however, Piedmont has entered into interest rate swap agreements which effectively fix the interest rate on $80 million of the term loan to 5.50% through February 1, 2026, assuming no change in Piedmont's or Piedmont OP's credit rating. For the remaining variable portion of the loan, Piedmont may select from multiple interest rate options, including the prime rate and various length SOFR locks. See Note 4 for disclosures of Piedmont's derivative instruments. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | A detail of Piedmont’s interest rate derivatives outstanding as of June 30, 2024 is as follows: Interest Rate Derivatives: Number of Swap Agreements Associated Debt Instrument Total Notional Amount Effective Date Maturity Date Interest rate swaps 2 $250 Million Unsecured 2018 Term Loan $ 100 3/29/2018 3/31/2025 Interest rate swaps 3 $250 Million Unsecured 2018 Term Loan 75 12/2/2022 3/31/2025 Interest rate swaps 3 $250 Million Unsecured 2018 Term Loan 75 12/12/2022 3/31/2025 Interest rate swaps 2 $200 Million Unsecured 2024 Term Loan 80 2/1/2024 2/1/2026 Total $ 330 |
Schedule of Interest Rate Derivatives | A detail of Piedmont’s interest rate derivatives on a gross and net basis as of June 30, 2024 and December 31, 2023, respectively, is as follows (in thousands): Interest rate swaps classified as: June 30, December 31, Gross derivative assets $ 3,578 $ 3,032 Gross derivative liabilities — — Net derivative asset $ 3,578 $ 3,032 |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income | The gain 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 six months ended June 30, 2024 and 2023, respectively, is as follows (in thousands): Three Months Ended Six Months Ended Interest Rate Swaps in Cash Flow Hedging Relationships June 30, June 30, June 30, June 30, Amount of gain recognized in OCI $ 828 $ 4,107 $ 3,260 $ 3,022 Amount of previously recorded gain reclassified from OCI into interest expense $ 918 $ 818 $ 2,022 $ 1,320 Total amount of interest expense presented in the consolidated statements of operations $ (29,569) $ (23,389) $ (59,283) $ (45,466) Total amount of loss on early extinguishment of debt presented in the consolidated statements of operations $ — $ — $ (386) $ — |
Fair Value Measurement of Fin_2
Fair Value Measurement of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, by Balance Sheet Grouping | 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 June 30, 2024 and December 31, 2023, respectively (in thousands): June 30, 2024 December 31, 2023 Financial Instrument Carrying Value Estimated Level Within Fair Value Hierarchy Carrying Value Estimated Level Within Fair Value Hierarchy Assets: Cash and cash equivalents (1) $ 138,454 $ 138,454 Level 1 $ 825 $ 825 Level 1 Tenant receivables, net (1) $ 7,619 $ 7,619 Level 1 $ 7,915 $ 7,915 Level 1 Restricted cash and escrows (1) $ 5,368 $ 5,368 Level 1 $ 3,381 $ 3,381 Level 1 Interest rate swaps $ 3,578 $ 3,578 Level 2 $ 3,032 $ 3,032 Level 2 Liabilities: Accounts payable and accrued expenses (1) $ 13,200 $ 13,200 Level 1 $ 49,706 $ 49,706 Level 1 Debt, net $ 2,221,738 $ 2,151,483 Level 2 $ 2,054,596 $ 1,953,447 Level 2 (1) For the periods presented, the carrying value of these financial instruments approximates estimated fair value due to their short-term maturity. |
Property Disposition and Asse_2
Property Disposition and Assets Held for Sale (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Assets Held For Sale and Discontinued Operations | Details of amounts held for sale are presented below (in thousands): June 30, 2024 December 31, 2023 Real estate assets held for sale, net: Land $ 7,860 $ 7,860 Building and improvements, less accumulated depreciation of $7,821 and $7,376 as of June 30, 2024 and December 31, 2023, respectively 9,832 27,616 Construction in progress 1,034 727 Total real estate assets held for sale, net $ 18,726 $ 36,203 Other assets held for sale, net: Straight-line rent receivables $ 948 $ 983 Prepaid expenses and other assets 1,080 908 Deferred lease costs, less accumulated amortization of $752 and $666 as of June 30, 2024 and December 31, 2023, respectively 1,236 1,322 Total other assets held for sale, net $ 3,264 $ 3,213 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Nonvested Share Activity | A roll forward of Piedmont's equity based award activity for the six months ended June 30, 2024 is as follows: Shares Weighted-Average Grant Date Fair Value Unvested and Potential Stock Awards as of December 31, 2023 1,094,297 $ 11.35 Deferred Stock Awards Granted 644,002 $ 6.60 Performance Stock Awards Granted 641,985 $ 7.64 Change in Estimated Potential Share Awards based on TSR Performance 1,092,402 $ 9.92 Performance Stock Awards Vested (5,734) $ 15.40 Deferred Stock Awards Vested (427,426) $ 10.76 Deferred Stock Awards Forfeited (17,665) $ 11.06 Unvested and Potential Stock Awards as of June 30, 2024 3,021,861 $ 9.11 The following table provides additional information regarding stock award activity during the three and six months ended June 30, 2024 and 2023, respectively (in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Weighted-Average Grant Date Fair Value per share of Deferred Stock Granted During the Period $ 6.95 $ 6.57 $ 6.60 $ 9.60 Total Grant Date Fair Value of Deferred Stock Vested During the Period $ 800 $ 793 $ 4,601 $ 4,866 |
Schedule of Outstanding Employee Stock Awards | A detail of Piedmont’s outstanding stock awards and programs as of June 30, 2024 is as follows: Date of grant Type of Award Net Shares Granted (1) Grant Vesting Schedule Unvested Shares May 3, 2019 Deferred Stock Award 26,385 (2) $ 21.04 Of the shares granted, 20% vested or will vest on July 1, 2020, 2021, 2022, 2023 and 2024, respectively. 9,505 February 10, 2022 Deferred Stock Award 145,674 $ 16.85 Of the shares granted, 25% vested on the date of grant, and 25% vested or will vest on February 10, 2023, 2024, and 2025, respectively. 52,131 February 17, 2022 2022-2024 Performance Share Program — $ 17.77 Shares awarded, if any, will vest immediately upon determination of award in 2025. 155,192 (3) February 13, 2023 Deferred Stock Award 347,945 $ 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. 205,841 February 23, 2023 2023-2025 Performance Share Program — $ 12.37 Shares awarded, if any, will vest immediately upon determination of award in 2026. 380,627 (3) February 23, 2023 Deferred Stock Award 372,394 $ 9.47 Of the shares granted, 25% will vest on February 23, 2024, 2025, 2026, and 2027, respectively. 290,593 February 20, 2024 Deferred Stock Award 557,674 $ 6.55 Of the shares granted, 25% will vest on February 20, 2025, 2026, 2027, and 2028, respectively. 557,674 February 20, 2024 2024-2026 Performance Share Program — $ 7.64 Shares awarded, if any, will vest immediately upon determination of award in 2027. 1,283,970 (3) May 7, 2024 Deferred Stock Award-Board of Directors 86,328 $ 6.95 Of the shares granted, 100% will vest on the earlier of the 2025 Annual Meeting or May 7, 2025. 86,328 Total 3,021,861 (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 June 30, 2024. (2) Reflects a special, one-time deferred stock award to Piedmont's Chief Executive Officer effective on July 1, 2019, the date of his promotion to the position, which vested in ratable installments over a five year period beginning on the anniversary of the grant date. (3) Estimated based on Piedmont's cumulative TSR for the respective performance period through June 30, 2024. Share estimates are subject to change in future periods based upon Piedmont's relative TSR performance compared to its peer group of office REITs. |
Supplemental Disclosures for _2
Supplemental Disclosures for the Statement of Consolidated Cash Flows (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Certain Non-cash Investing and Financing Activities | Certain non-cash investing and financing activities for the six months ended June 30, 2024 and 2023 (in thousands) are outlined below: Six Months Ended June 30, June 30, Tenant improvements funded by tenants $ 13,845 $ 29,574 Accrued capital expenditures and deferred lease costs $ 35,294 $ 24,655 Change in accrued dividends $ (15,143) $ (25,358) Change in accrued deferred financing costs $ (232) $ (44) 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 six months ended June 30, 2024 and 2023, to the consolidated balance sheets for the respective period (in thousands): 2024 2023 Cash and cash equivalents, beginning of period $ 825 $ 16,536 Restricted cash and escrows, beginning of period 3,381 3,064 Total cash, cash equivalents, and restricted cash and escrows as presented in the accompanying consolidated statement of cash flows, beginning of period $ 4,206 $ 19,600 Cash and cash equivalents, end of period $ 138,454 $ 5,167 Restricted cash and escrows, end of period 5,368 5,055 Total cash, cash equivalents, and restricted cash and escrows as presented in the accompanying consolidated statement of cash flows, end of period $ 143,822 $ 10,222 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Revenue and Net Operating Income, by Segment | The following table presents accrual-based lease revenue and other property related income included in NOI by geographic reportable segment (in thousands): Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Atlanta $ 43,340 $ 40,210 $ 85,110 $ 79,427 Dallas 26,818 27,779 55,523 56,061 Orlando 15,006 15,464 30,355 30,877 Northern Virginia/Washington, D.C. 15,142 14,880 30,724 29,779 Minneapolis 12,524 15,463 25,640 30,425 New York 13,619 13,249 27,310 26,734 Boston 11,295 10,516 22,438 20,766 Total reportable segments 137,744 137,561 277,100 274,069 Other 5,518 5,511 10,700 11,370 Total Revenues $ 143,262 $ 143,072 $ 287,800 $ 285,439 The following table presents NOI by geographic reportable segment (in thousands): Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Atlanta $ 27,759 $ 26,096 $ 53,903 $ 51,282 Dallas 15,510 15,203 32,045 30,978 Orlando 8,055 9,286 17,067 18,551 Northern Virginia/Washington, D.C. 9,368 8,993 18,680 17,973 Minneapolis 5,882 8,233 12,512 16,456 New York 7,744 7,351 14,994 14,722 Boston 7,146 6,458 14,327 12,791 Total reportable segments 81,464 81,620 163,528 162,753 Other 3,085 3,046 6,227 6,412 Total NOI $ 84,549 $ 84,666 $ 169,755 $ 169,165 A reconciliation of Net loss applicable to Piedmont to NOI is presented below (in thousands): Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Net loss applicable to Piedmont $ (9,809) $ (1,988) $ (37,572) $ (3,355) Management fee revenue (1) (256) (254) (252) (546) Depreciation and amortization 56,911 57,808 113,901 115,636 Impairment charges — — 18,432 — General and administrative expenses 8,352 7,279 15,964 14,970 Interest expense 29,569 23,389 59,283 45,466 Other income (220) (1,571) (391) (3,012) Loss on early extinguishment of debt — — 386 — Net income applicable to noncontrolling interest 2 3 4 6 Total NOI $ 84,549 $ 84,666 $ 169,755 $ 169,165 (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. |
Organization (Details)
Organization (Details) ft² in Millions | Jun. 30, 2024 ft² property |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |
Number of real estate properties | 31 |
Area of real estate property (in sq ft) | ft² | 15.7 |
Percentage leased | 87.30% |
Redevelopment Asset | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |
Number of real estate properties | 3 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Schedule of Fixed and Variable Lease Payments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Accounting Policies [Abstract] | ||||
Fixed payments | $ 111,581 | $ 112,238 | $ 224,894 | $ 224,798 |
Variable payments | 25,089 | 25,265 | 50,857 | 49,534 |
Total Rental and Tenant Reimbursement Revenue | $ 136,670 | $ 137,503 | $ 275,751 | $ 274,332 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) building | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Accounting Policies [Abstract] | |||||
Number of buildings leased | building | 1 | ||||
Right of use asset | $ 30 | $ 30 | $ 100 | ||
Lease liability | 30 | 30 | $ 100 | ||
Operating lease costs | $ 20 | $ 40 | $ 20 | $ 40 | |
Operating lease, remaining lease term | 5 months | 5 months | |||
Discount rate | 3.86% | 3.86% |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | |
Schedule of Debt Instruments [Line Items] | ||||||
Proceeds from debt | $ 918,972,000 | $ 499,603,000 | ||||
Loss on early extinguishment of debt | $ 0 | $ 0 | 386,000 | 0 | ||
Interest paid | 16,700,000 | 21,600,000 | 62,700,000 | 45,100,000 | ||
Interest costs capitalized | 3,000,000 | $ 1,400,000 | 5,800,000 | $ 2,600,000 | ||
Unsecured Debt | ||||||
Schedule of Debt Instruments [Line Items] | ||||||
Loss on early extinguishment of debt | 400,000 | |||||
$400 Million Unsecured Senior Notes due 2029 | Unsecured Debt | ||||||
Schedule of Debt Instruments [Line Items] | ||||||
Debt instrument, face amount | $ 400,000,000 | $ 400,000,000 | ||||
Stated rate | 6.875% | 6.875% | ||||
Proceeds from debt | $ 396,000,000 | |||||
Debt instrument, discount | $ 4,000,000 | $ 4,000,000 | ||||
Debt instrument, term | 5 years | |||||
Amount outstanding, gross | $ 400,000,000 | $ 400,000,000 | $ 0 | |||
Effective interest rate (percent) | 7.11% | 7.11% | ||||
$600 Million Unsecured 2022 Line of Credit | Unsecured Debt | ||||||
Schedule of Debt Instruments [Line Items] | ||||||
Debt instrument, face amount | $ 600,000,000 | $ 600,000,000 | ||||
$215 Million Unsecured 2023 Term Loan | Unsecured Debt | ||||||
Schedule of Debt Instruments [Line Items] | ||||||
Debt instrument, face amount | 215,000,000 | 215,000,000 | ||||
Repayments of unsecured debt | 25,000,000 | 190,000,000 | ||||
Amount outstanding, gross | $ 0 | $ 0 | $ 25,000,000 | 215,000,000 | ||
Effective interest rate (percent) | 6.71% | 6.71% | ||||
$250 Million Unsecured 2018 Term Loan | Unsecured Debt | ||||||
Schedule of Debt Instruments [Line Items] | ||||||
Debt instrument, face amount | $ 250,000,000 | $ 250,000,000 | ||||
Amount outstanding, gross | $ 250,000,000 | $ 250,000,000 | 250,000,000 | |||
Effective interest rate (percent) | 4.79% | 4.79% | ||||
$200 Million Unsecured 2024 Term Loan | Unsecured Debt | ||||||
Schedule of Debt Instruments [Line Items] | ||||||
Debt instrument, face amount | $ 200,000,000 | $ 200,000,000 | ||||
Debt instrument, term | 3 years | |||||
Amount outstanding, gross | $ 200,000,000 | $ 200,000,000 | 0 | |||
Basis spread on variable rate | 1.30% | |||||
Effective interest rate (percent) | 6.22% | 6.22% | ||||
Minimum unencumbered interest coverage ratio | 1.75 | |||||
Minimum unencumbered leverage ratio | 1.60 | |||||
Minimum fixed charge coverage ratio | 1.50 | |||||
Maximum leverage ratio | 0.60 | |||||
Maximum secured debt ratio | 0.40 | |||||
$200 Million Unsecured 2024 Term Loan | Unsecured Debt | Minimum | ||||||
Schedule of Debt Instruments [Line Items] | ||||||
Basis spread on variable rate | 0.85% | |||||
$200 Million Unsecured 2024 Term Loan | Unsecured Debt | Maximum | ||||||
Schedule of Debt Instruments [Line Items] | ||||||
Basis spread on variable rate | 1.70% | |||||
$200 Million Unsecured 2022 Term Loan Facility | Unsecured Debt | ||||||
Schedule of Debt Instruments [Line Items] | ||||||
Debt instrument, face amount | $ 200,000,000 | $ 200,000,000 | ||||
Repayments of unsecured debt | 100,000,000 | |||||
Amount outstanding, gross | $ 0 | 0 | 100,000,000 | |||
Loss on early extinguishment of debt | $ 386,000 | |||||
Effective interest rate (percent) | 6.70% | 6.70% | ||||
$400 Million Unsecured Senior Notes due 2024 | Unsecured Debt | ||||||
Schedule of Debt Instruments [Line Items] | ||||||
Debt instrument, face amount | $ 400,000,000 | $ 400,000,000 | ||||
Stated rate | 4.45% | 4.45% | ||||
Repayments of unsecured debt | $ 50,200,000 | |||||
Amount outstanding, gross | $ 0 | $ 0 | $ 50,154,000 | |||
Effective interest rate (percent) | 4.10% | 4.10% |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) | 6 Months Ended | ||
Jun. 30, 2024 USD ($) extension | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | |||
Weighted average rate (percent) | 6.08% | ||
Unamortized discounts and debt issuance costs | $ (22,431,000) | $ (15,437,000) | |
Total/Weighted Average | 2,221,738,000 | 2,054,596,000 | |
Secured Debt | |||
Debt Instrument [Line Items] | |||
Total/Weighted Average | 194,169,000 | 195,879,000 | |
Secured Debt | $197 Million Fixed Rate Mortgage | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 197,000,000 | ||
Stated Rate (2) | 4.10% | ||
Effective interest rate (percent) | 4.10% | ||
Amount outstanding, gross | $ 194,169,000 | 195,879,000 | |
Unsecured Debt | |||
Debt Instrument [Line Items] | |||
Weighted average rate (percent) | 6.26% | ||
Unamortized discounts and debt issuance costs | $ (22,431,000) | (15,437,000) | |
Total/Weighted Average | 2,027,569,000 | 1,858,717,000 | |
Notional amount of interest rate swap agreements | $ 330,000,000 | ||
Unsecured Debt | Adjusted Secured Overnight Financing Rate SOFR | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.10% | ||
Unsecured Debt | $400 Million Unsecured Senior Notes due 2024 | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 400,000,000 | ||
Stated Rate (2) | 4.45% | ||
Effective interest rate (percent) | 4.10% | ||
Amount outstanding, gross | $ 0 | 50,154,000 | |
Unsecured Debt | $200 Million Unsecured 2022 Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 200,000,000 | ||
Effective interest rate (percent) | 6.70% | ||
Amount outstanding, gross | $ 0 | 100,000,000 | |
Unsecured Debt | $200 Million Unsecured 2022 Term Loan Facility | Secured Overnight Financing Rate (SOFR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.25% | ||
Unsecured Debt | $215 Million Unsecured 2023 Term Loan | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 215,000,000 | ||
Effective interest rate (percent) | 6.71% | ||
Amount outstanding, gross | $ 0 | $ 25,000,000 | 215,000,000 |
Unsecured Debt | $215 Million Unsecured 2023 Term Loan | Secured Overnight Financing Rate (SOFR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.30% | ||
Unsecured Debt | $250 Million Unsecured 2018 Term Loan | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 250,000,000 | ||
Effective interest rate (percent) | 4.79% | ||
Amount outstanding, gross | $ 250,000,000 | 250,000,000 | |
Unsecured Debt | $250 Million Unsecured 2018 Term Loan | Secured Overnight Financing Rate (SOFR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.20% | ||
Unsecured Debt | $600 Million Unsecured 2022 Line of Credit | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 600,000,000 | ||
Unsecured Debt | $600 Million Unsecured 2022 Line of Credit | Line of Credit | |||
Debt Instrument [Line Items] | |||
Effective interest rate (percent) | 6.45% | ||
Amount outstanding, gross | $ 0 | 59,000,000 | |
Maximum extension period (in years) | 1 year | ||
Number of extension periods | extension | 2 | ||
Extension period | 6 months | ||
Unsecured Debt | $600 Million Unsecured 2022 Line of Credit | Secured Overnight Financing Rate (SOFR) | Line of Credit | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.04% | ||
Unsecured Debt | $200 Million Unsecured 2024 Term Loan | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 200,000,000 | ||
Basis spread on variable rate | 1.30% | ||
Effective interest rate (percent) | 6.22% | ||
Amount outstanding, gross | $ 200,000,000 | 0 | |
Notional amount of interest rate swap agreements | $ 80,000,000 | ||
Interest rate on derivative instrument | 5.50% | ||
Unsecured Debt | $200 Million Unsecured 2024 Term Loan | Secured Overnight Financing Rate (SOFR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.30% | ||
Unsecured Debt | $600 Million Unsecured Senior Notes due 2028 | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 600,000,000 | ||
Stated Rate (2) | 9.25% | ||
Effective interest rate (percent) | 9.25% | ||
Amount outstanding, gross | $ 600,000,000 | 600,000,000 | |
Unsecured Debt | $400 Million Unsecured Senior Notes due 2029 | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 400,000,000 | ||
Stated Rate (2) | 6.875% | ||
Effective interest rate (percent) | 7.11% | ||
Amount outstanding, gross | $ 400,000,000 | 0 | |
Unsecured Debt | $300 Million Unsecured Senior Notes due 2030 | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 300,000,000 | ||
Stated Rate (2) | 3.15% | ||
Effective interest rate (percent) | 3.90% | ||
Amount outstanding, gross | $ 300,000,000 | 300,000,000 | |
Unsecured Debt | $300 Million Unsecured Senior Notes due 2032 | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 300,000,000 | ||
Stated Rate (2) | 2.75% | ||
Effective interest rate (percent) | 2.78% | ||
Amount outstanding, gross | $ 300,000,000 | $ 300,000,000 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) | 6 Months Ended |
Jun. 30, 2024 USD ($) derivative_contract | |
Derivative [Line Items] | |
Number of swap agreements | derivative_contract | 2 |
Maximum period of extension term | 19 months |
Decrease in interest expense over the next twelve months | $ | $ 1,600,000 |
$200 Million Unsecured 2024 Term Loan | Unsecured Debt | |
Derivative [Line Items] | |
Number of swap agreements | derivative_contract | 2 |
Debt instrument, face amount | $ | $ 200,000,000 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Notional Amounts of Outstanding Derivative Positions (Details) | Jun. 30, 2024 USD ($) derivative_contract |
Derivative [Line Items] | |
Number of Swap Agreements | derivative_contract | 2 |
Unsecured Debt | |
Derivative [Line Items] | |
Notional amount of interest rate swap agreements | $ 330,000,000 |
Unsecured Debt | $250 Million Unsecured 2018 Term Loan | |
Derivative [Line Items] | |
Debt instrument, face amount | $ 250,000,000 |
Unsecured Debt | $250 Million Unsecured 2018 Term Loan | Interest Rate Swap, Tranche 1 | |
Derivative [Line Items] | |
Number of Swap Agreements | derivative_contract | 2 |
Notional amount of interest rate swap agreements | $ 100,000,000 |
Unsecured Debt | $250 Million Unsecured 2018 Term Loan | Interest Rate Swap, Tranche 2 | |
Derivative [Line Items] | |
Number of Swap Agreements | derivative_contract | 3 |
Notional amount of interest rate swap agreements | $ 75,000,000 |
Unsecured Debt | $250 Million Unsecured 2018 Term Loan | Interest Rate Swap, Tranche 3 | |
Derivative [Line Items] | |
Number of Swap Agreements | derivative_contract | 3 |
Notional amount of interest rate swap agreements | $ 75,000,000 |
Unsecured Debt | $200 Million Unsecured 2024 Term Loan | |
Derivative [Line Items] | |
Number of Swap Agreements | derivative_contract | 2 |
Debt instrument, face amount | $ 200,000,000 |
Notional amount of interest rate swap agreements | $ 80,000,000 |
Derivative Instruments - Sche_2
Derivative Instruments - Schedule of Interest Rate Derivatives (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross derivative assets | $ 3,578 | $ 3,032 |
Gross derivative liabilities | 0 | 0 |
Net derivative asset | $ 3,578 | $ 3,032 |
Derivative Instruments - Effect
Derivative Instruments - Effect on other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative [Line Items] | ||||
Amount of gain recognized in OCI | $ 828 | $ 4,107 | $ 3,260 | $ 3,022 |
Total amount of interest expense presented in the consolidated statements of operations | (29,569) | (23,389) | (59,283) | (45,466) |
Total amount of loss on early extinguishment of debt presented in the consolidated statements of operations | 0 | 0 | (386) | 0 |
Interest rate swaps | ||||
Derivative [Line Items] | ||||
Amount of gain recognized in OCI | 828 | 4,107 | 3,260 | 3,022 |
Amount of previously recorded gain reclassified from OCI into interest expense | 918 | 818 | 2,022 | 1,320 |
Total amount of interest expense presented in the consolidated statements of operations | (29,569) | (23,389) | (59,283) | (45,466) |
Total amount of loss on early extinguishment of debt presented in the consolidated statements of operations | $ 0 | $ 0 | $ (386) | $ 0 |
Fair Value Measurement of Fin_3
Fair Value Measurement of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Assets: | ||
Interest rate swaps | $ 3,578 | $ 3,032 |
Carrying Value | ||
Assets: | ||
Cash and cash equivalents | 138,454 | 825 |
Restricted cash and escrows | 5,368 | 3,381 |
Liabilities: | ||
Accounts payable and accrued expenses | 13,200 | 49,706 |
Debt, net | 2,221,738 | 2,054,596 |
Carrying Value | Tenant receivables, net of allowance for doubtful accounts | ||
Assets: | ||
Tenant receivables, net | 7,619 | 7,915 |
Carrying Value | Interest rate swaps | ||
Assets: | ||
Interest rate swaps | 3,578 | 3,032 |
Estimated Fair Value | Level 1 | ||
Assets: | ||
Cash and cash equivalents | 138,454 | 825 |
Restricted cash and escrows | 5,368 | 3,381 |
Liabilities: | ||
Accounts payable and accrued expenses | 13,200 | 49,706 |
Estimated Fair Value | Level 1 | Tenant receivables, net of allowance for doubtful accounts | ||
Assets: | ||
Tenant receivables, net | 7,619 | 7,915 |
Estimated Fair Value | Level 2 | ||
Liabilities: | ||
Debt, net | 2,151,483 | 1,953,447 |
Estimated Fair Value | Interest rate swaps | Level 2 | ||
Assets: | ||
Interest rate swaps | $ 3,578 | $ 3,032 |
Impairment Charges (Details)
Impairment Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Impairment charges | $ 0 | $ 0 | $ 18,432 | $ 0 |
Disposal Group, Held-for-sale, Not Discontinued Operations | 750 West John Carpenter Freeway | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Impairment charges | 17,500 | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | One Lincoln Park | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Impairment charges | $ 900 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) commitment | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) commitment | Jun. 30, 2023 USD ($) | |
Loss Contingencies [Line Items] | ||||
Number of unrecorded tenant allowance commitment | commitment | 2 | 2 | ||
Contractual obligation | $ 10,000,000 | $ 10,000,000 | ||
Collectibility of Tenant Reimbursements | ||||
Loss Contingencies [Line Items] | ||||
Reductions in reimbursement revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Property Disposition and Asse_3
Property Disposition and Assets Held for Sale - Narrative (Details) ft² in Thousands | 6 Months Ended | ||
Jun. 30, 2024 USD ($) ft² | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net sales proceeds from wholly-owned properties | $ 53,308,000 | $ 0 | |
Area of real estate property (in sq ft) | ft² | 15,700 | ||
Real estate, held-for-sale | $ 18,726,000 | $ 36,203,000 | |
$400 Million Unsecured Senior Notes due 2024 | Unsecured Debt | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Repayments of unsecured debt | 50,200,000 | ||
Debt instrument, face amount | $ 400,000,000 | ||
750 West John Carpenter Freeway | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Percentage of office building leased | 46% | ||
Area of real estate property (in sq ft) | ft² | 315 | ||
Real estate, held-for-sale | $ 23,000,000 | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | One Lincoln Park | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net sales proceeds from wholly-owned properties | $ 53,300,000 |
Property Disposition and Asse_4
Property Disposition and Assets Held for Sale - Details of Amounts Held For Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Other assets held for sale, net: | ||
Total other assets held for sale, net | $ 3,264 | $ 3,213 |
Disposal Group, Held-for-sale, Not Discontinued Operations | ||
Real estate assets held for sale, net: | ||
Real estate assets held for sale, net | 18,726 | 36,203 |
Other assets held for sale, net: | ||
Straight-line rent receivables | 948 | 983 |
Prepaid expenses and other assets | 1,080 | 908 |
Deferred lease costs, less accumulated amortization of $752 and $666 as of June 30, 2024 and December 31, 2023, respectively | 1,236 | 1,322 |
Total other assets held for sale, net | 3,264 | 3,213 |
Accumulated amortization on deferred lease costs | 752 | 666 |
Disposal Group, Held-for-sale, Not Discontinued Operations | Land | ||
Real estate assets held for sale, net: | ||
Real estate assets held for sale, net | 7,860 | 7,860 |
Disposal Group, Held-for-sale, Not Discontinued Operations | Building and building improvements | ||
Real estate assets held for sale, net: | ||
Real estate assets held for sale, net | 9,832 | 27,616 |
Accumulated depreciation (building improvements) | 7,821 | 7,376 |
Disposal Group, Held-for-sale, Not Discontinued Operations | Construction in progress | ||
Real estate assets held for sale, net: | ||
Real estate assets held for sale, net | $ 1,034 | $ 727 |
Stock Based Compensation - Narr
Stock Based Compensation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense related to stock awards | $ 2.2 | $ 2.2 | $ 4.1 | $ 3.9 |
Total shares issued to employees, directors, and officers (in shares) | 279,693 | |||
Unrecognized compensation cost related to nonvested | $ 16.3 | $ 16.3 | ||
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 4 years | |||
Weighted Average | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost related to nonvested, weighted-average vesting period | 1 year 9 months 18 days | |||
Independent Director Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 1 year |
Stock Based Compensation - Roll
Stock Based Compensation - Rollforward of Stock Awards (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Shares | ||||
Unvested and potential stock awards, end of period (in shares) | 3,021,861 | 3,021,861 | ||
Stock Awards | ||||
Shares | ||||
Unvested and potential stock awards, beginning of period (in shares) | 1,094,297 | |||
Unvested and potential stock awards, end of period (in shares) | 3,021,861 | 3,021,861 | ||
Weighted-Average Grant Date Fair Value | ||||
Unvested and potential stock awards, beginning of period (in dollars per share) | $ 11.35 | |||
Unvested and potential stock awards, end of period (in dollars per share) | $ 9.11 | $ 9.11 | ||
Deferred Stock Awards | ||||
Shares | ||||
Stock awards granted (in shares) | 644,002 | |||
Stock awards vested (in shares) | (427,426) | |||
Deferred stock awards forfeited (in shares) | (17,665) | |||
Weighted-Average Grant Date Fair Value | ||||
Stock awards granted (in dollars per share) | $ 6.95 | $ 6.57 | $ 6.60 | $ 9.60 |
Stock awards vested (in dollars per share) | 10.76 | |||
Deferred stock awards forfeited (in dollars per share) | $ 11.06 | |||
Performance Share Awards | ||||
Shares | ||||
Stock awards granted (in shares) | 641,985 | |||
Change in estimated potential share award based on TSR performance (in shares) | 1,092,402 | |||
Stock awards vested (in shares) | (5,734) | |||
Weighted-Average Grant Date Fair Value | ||||
Stock awards granted (in dollars per share) | $ 7.64 | |||
Change in estimated potential share award based on TSR performance (in dollars per share) | 9.92 | |||
Stock awards vested (in dollars per share) | $ 15.40 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information Regarding Stock Award Activity (Details) - Deferred Stock Awards - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average grant date fair value per share of deferred stock granted during the period (in dollars per share) | $ 6.95 | $ 6.57 | $ 6.60 | $ 9.60 |
Total Grant Date Fair Value of Deferred Stock Vested During the Period | $ 800 | $ 793 | $ 4,601 | $ 4,866 |
Stock Based Compensation - Outs
Stock Based Compensation - Outstanding Employee Stock Awards (Details) - $ / shares | May 07, 2024 | Feb. 20, 2024 | Feb. 23, 2023 | Feb. 13, 2023 | Feb. 10, 2022 | Jul. 01, 2019 | May 03, 2019 | Jun. 30, 2024 | Feb. 17, 2022 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Unvested shares (in shares) | 3,021,861 | ||||||||
Deferred Stock Awards | Deferred Stock Award, Granted May 3, 2019 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Net shares granted (in shares) | 26,385 | ||||||||
Grant date fair value (in dollars per share) | $ 21.04 | ||||||||
Unvested shares (in shares) | 9,505 | ||||||||
Deferred Stock Awards | Deferred Stock Award, Granted May 3, 2019 | Year 1 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 20% | ||||||||
Deferred Stock Awards | Deferred Stock Award, Granted May 3, 2019 | Year 2 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 20% | ||||||||
Deferred Stock Awards | Deferred Stock Award, Granted May 3, 2019 | Year 3 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 20% | ||||||||
Deferred Stock Awards | Deferred Stock Award, Granted May 3, 2019 | Year 4 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 20% | ||||||||
Deferred Stock Awards | Deferred Stock Award, Granted May 3, 2019 | Year 5 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 20% | ||||||||
Deferred Stock Awards | Deferred Stock Award, Granted February 10, 2022 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Net shares granted (in shares) | 145,674 | ||||||||
Grant date fair value (in dollars per share) | $ 16.85 | ||||||||
Unvested shares (in shares) | 52,131 | ||||||||
Deferred Stock Awards | Deferred Stock Award, Granted February 10, 2022 | Year 1 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 25% | ||||||||
Deferred Stock Awards | Deferred Stock Award, Granted February 10, 2022 | Year 2 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 25% | ||||||||
Deferred Stock Awards | Deferred Stock Award, Granted February 10, 2022 | Year 3 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 25% | ||||||||
Deferred Stock Awards | Deferred Stock Award, Granted February 10, 2022 | Year 4 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 25% | ||||||||
Deferred Stock Awards | Deferred Stock Award, Granted February 13, 2023 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Net shares granted (in shares) | 347,945 | ||||||||
Grant date fair value (in dollars per share) | $ 10.55 | ||||||||
Unvested shares (in shares) | 205,841 | ||||||||
Deferred Stock Awards | Deferred Stock Award, Granted February 13, 2023 | Year 1 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 25% | ||||||||
Deferred Stock Awards | Deferred Stock Award, Granted February 13, 2023 | Year 2 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 25% | ||||||||
Deferred Stock Awards | Deferred Stock Award, Granted February 13, 2023 | Year 3 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 25% | ||||||||
Deferred Stock Awards | Deferred Stock Award, Granted February 13, 2023 | Year 4 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 25% | ||||||||
Deferred Stock Awards | Deferred Stock Award, Granted February 23, 2023 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Net shares granted (in shares) | 372,394 | ||||||||
Grant date fair value (in dollars per share) | $ 9.47 | ||||||||
Unvested shares (in shares) | 290,593 | ||||||||
Deferred Stock Awards | Deferred Stock Award, Granted February 23, 2023 | Year 1 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 25% | ||||||||
Deferred Stock Awards | Deferred Stock Award, Granted February 23, 2023 | Year 2 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 25% | ||||||||
Deferred Stock Awards | Deferred Stock Award, Granted February 23, 2023 | Year 3 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 25% | ||||||||
Deferred Stock Awards | Deferred Stock Award, Granted February 23, 2023 | Year 4 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 25% | ||||||||
Deferred Stock Awards | Deferred Stock Award, Granted February 20, 2024 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Net shares granted (in shares) | 557,674 | ||||||||
Grant date fair value (in dollars per share) | $ 6.55 | ||||||||
Unvested shares (in shares) | 557,674 | ||||||||
Deferred Stock Awards | Deferred Stock Award, Granted February 20, 2024 | Year 1 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 25% | ||||||||
Deferred Stock Awards | Deferred Stock Award, Granted February 20, 2024 | Year 2 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 25% | ||||||||
Deferred Stock Awards | Deferred Stock Award, Granted February 20, 2024 | Year 3 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 25% | ||||||||
Deferred Stock Awards | Deferred Stock Award, Granted February 20, 2024 | Year 4 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 25% | ||||||||
Deferred Stock Awards | Deferred Stock Award, Granted May 07, 2024 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Net shares granted (in shares) | 86,328 | ||||||||
Grant date fair value (in dollars per share) | $ 6.95 | ||||||||
Unvested shares (in shares) | 86,328 | ||||||||
Deferred Stock Awards | Deferred Stock Award, Granted May 07, 2024 | Year 1 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 100% | ||||||||
Performance Share Awards | Performance Share Program Award, Granted February 17, 2022 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Net shares granted (in shares) | 0 | ||||||||
Grant date fair value (in dollars per share) | $ 17.77 | ||||||||
Unvested shares (in shares) | 155,192 | ||||||||
Performance Share Awards | Performance Share Program Award, Granted February 23, 2023 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Net shares granted (in shares) | 0 | ||||||||
Grant date fair value (in dollars per share) | $ 12.37 | ||||||||
Unvested shares (in shares) | 380,627 | ||||||||
Performance Share Awards | Performance Share Program Award, Granted February 20, 2024 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Net shares granted (in shares) | 0 | ||||||||
Grant date fair value (in dollars per share) | $ 7.64 | ||||||||
Unvested shares (in shares) | 1,283,970 | ||||||||
Chief Executive Officer Awards | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting period | 5 years |
Supplemental Disclosures for _3
Supplemental Disclosures for the Statement of Consolidated Cash Flows (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | ||||
Tenant improvements funded by tenants | $ 13,845 | $ 29,574 | ||
Accrued capital expenditures and deferred lease costs | 35,294 | 24,655 | ||
Change in accrued dividends | (15,143) | (25,358) | ||
Change in accrued deferred financing costs | (232) | (44) | ||
Cash and cash equivalents | 138,454 | 5,167 | $ 825 | $ 16,536 |
Restricted cash and escrows | 5,368 | 5,055 | 3,381 | 3,064 |
Total cash, cash equivalents, and restricted cash and escrows as presented in the accompanying consolidated statement of cash flows, beginning of period | $ 143,822 | $ 10,222 | $ 4,206 | $ 19,600 |
Segment Information - Narrative
Segment Information - Narrative (Details) | Jun. 30, 2024 property |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |
Number of real estate properties | 31 |
Other Segments | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |
Number of real estate properties | 2 |
Other Segments | Houston | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |
Number of real estate properties | 2 |
Segment Information - Revenue b
Segment Information - Revenue by Geographical Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenues | $ 143,262 | $ 143,072 | $ 287,800 | $ 285,439 |
Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenues | 137,744 | 137,561 | 277,100 | 274,069 |
Other | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenues | 5,518 | 5,511 | 10,700 | 11,370 |
Atlanta | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenues | 43,340 | 40,210 | 85,110 | 79,427 |
Dallas | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenues | 26,818 | 27,779 | 55,523 | 56,061 |
Orlando | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenues | 15,006 | 15,464 | 30,355 | 30,877 |
Northern Virginia/Washington, D.C. | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenues | 15,142 | 14,880 | 30,724 | 29,779 |
Minneapolis | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenues | 12,524 | 15,463 | 25,640 | 30,425 |
New York | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenues | 13,619 | 13,249 | 27,310 | 26,734 |
Boston | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenues | $ 11,295 | $ 10,516 | $ 22,438 | $ 20,766 |
Segment Information - NOI by Ge
Segment Information - NOI by Geographical Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total NOI | $ 84,549 | $ 84,666 | $ 169,755 | $ 169,165 |
Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total NOI | 81,464 | 81,620 | 163,528 | 162,753 |
Other | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total NOI | 3,085 | 3,046 | 6,227 | 6,412 |
Atlanta | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total NOI | 27,759 | 26,096 | 53,903 | 51,282 |
Dallas | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total NOI | 15,510 | 15,203 | 32,045 | 30,978 |
Orlando | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total NOI | 8,055 | 9,286 | 17,067 | 18,551 |
Northern Virginia/Washington, D.C. | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total NOI | 9,368 | 8,993 | 18,680 | 17,973 |
Minneapolis | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total NOI | 5,882 | 8,233 | 12,512 | 16,456 |
New York | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total NOI | 7,744 | 7,351 | 14,994 | 14,722 |
Boston | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total NOI | $ 7,146 | $ 6,458 | $ 14,327 | $ 12,791 |
Segment Information - Reconcili
Segment Information - Reconciliation of GAAP Net Income to NOI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting [Abstract] | ||||
Net loss applicable to Piedmont | $ (9,809) | $ (1,988) | $ (37,572) | $ (3,355) |
Management fee revenue | (256) | (254) | (252) | (546) |
Depreciation and amortization | 56,911 | 57,808 | 113,901 | 115,636 |
Impairment charges | 0 | 0 | 18,432 | 0 |
General and administrative expenses | 8,352 | 7,279 | 15,964 | 14,970 |
Interest expense | 29,569 | 23,389 | 59,283 | 45,466 |
Other income | (220) | (1,571) | (391) | (3,012) |
Loss on early extinguishment of debt | 0 | 0 | (386) | 0 |
Net income applicable to noncontrolling interest | 2 | 3 | 4 | 6 |
Total NOI | $ 84,549 | $ 84,666 | $ 169,755 | $ 169,165 |
Subsequent Event (Details)
Subsequent Event (Details) $ / shares in Units, ft² in Thousands, $ in Millions | Jul. 25, 2024 $ / shares | Jul. 23, 2024 USD ($) | Jun. 30, 2024 ft² |
Subsequent Event [Line Items] | |||
Area of real estate property (in sq ft) | 15,700 | ||
750 West John Carpenter Freeway | |||
Subsequent Event [Line Items] | |||
Percentage of office building leased | 46% | ||
Area of real estate property (in sq ft) | 315 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Common stock dividends (in dollars per share) | $ / shares | $ 0.125 | ||
Subsequent Event | 750 West John Carpenter Freeway | |||
Subsequent Event [Line Items] | |||
Proceed from sale of office building | $ | $ 23 |