Piedmont Office Realty Trust (PDM) Q3 2026 earnings summary

Executive summary

• Q3 Core FFO was $0.39 per diluted share, up from $0.35 YoY; cash Same Store NOI grew 7.5% as leasing momentum and rental-rate growth supported results.

• 2026 Core FFO guidance increased for the third consecutive quarter to $1.55-$1.57 per diluted share, $0.06 above the initial outlook midpoint.

• Portfolio repositioning, refinancing and a substantial backlog of signed leases supported the outlook; management cited improving supply-demand conditions and disciplined capital recycling.

Financial highlights

• Q3 revenue rose 8.7% YoY to $151.2M; total NOI was $91.1M versus $83.3M.

• Q3 Core FFO was $50.1M, or $0.39 per diluted share, versus $43.5M, or $0.35; NAREIT FFO was $29.9M, or $0.23 per diluted share.

• GAAP net loss was $21.0M, or $0.17 per share, versus $13.5M, or $0.11; results included a $20.2M debt-extinguishment loss and an $8.9M land-sale gain.

• Q3 Same Store NOI grew 7.5% cash basis and 6.9% accrual basis; 9M Core FFO was $144.0M, or $1.13 per diluted share, and AFFO was $84.8M.

Outlook and guidance

• 2026 Core FFO guidance rose to $1.55-$1.57 per diluted share, versus initial guidance of $1.47-$1.53.

• FY2026 Same Store NOI guidance is 7.5%-8.5% cash growth and 5%-6% accrual growth; executed leasing assumption is 1.7M-2.0M sq. ft.

• Year-end in-service occupancy target is 87.5%-88.5%; net effective rents are expected to remain in the mid-to-upper $20s per sq. ft.

• FY interest expense, net of interest income, is projected at $125M-$126M; guidance excludes speculative transactions and refinancing activity.

• Management expects net debt to EBITDA below 7x by year-end and further improvement in 2027 as signed leases commence; acquisition pace may be tempered while rates and capital flows settle.