Piedmont Office Realty Trust (PDM) BofA Securities Real Estate Conference Presentation summary

Company overview and strategy

• Operates 16M SF of Class A office properties, primarily in Sunbelt markets, with a client-centric, hospitality-driven approach focused on value creation and sustainability.

• 72% of annualized lease revenue (ALR) is derived from Sunbelt markets, with Atlanta and Dallas as the largest contributors.

• Portfolio is highly amenitized: 90% of ALR includes collaboration spaces, 98% food/beverage, 83% outdoor meeting areas, and 93% fitness spaces.

• Strategic capital recycling since 2019 has shifted $1.5B into Sunbelt acquisitions and $1.6B out of non-Sunbelt assets.

• Emphasizes tenant engagement, technology, and community relationships as core operational pillars.

Market dynamics and leasing performance

• Office leasing activity is rebounding but remains 17% below pre-pandemic levels; demand is concentrated in top-tier markets and highly amenitized buildings.

• Since 2020, 13.5M SF leased (~90% of portfolio), with 2026 leasing outlook of 1.7–2.0M SF and year-end leased rate projected at 89.5–90.5%.

• Rental rate roll-ups remain strong, with cash rental roll-ups averaging 7–13% in recent years.

• $39M in annualized revenue from executed leases yet to commence, expected to be realized by early 2027.

• Net effective rents have increased from $21.30/SF in 2025 to $23.85/SF YTD 2026.

Portfolio optimization and value creation

• Redevelopment of out-of-service assets has increased leased rates from 8% to over 80%, with significant rental rate growth and yields on cost ranging from 17–37%.

• Case studies (Meridian, Galleria Towers, 999 Peachtree, Galleria 600/200) show repositioning strategies driving 41–91% rental rate growth and high occupancy.

• Investments focus on low-risk, high-return projects that drive leasing momentum and cap rate compression.