Piedmont Office Realty Trust (PDM) Q4 2025 earnings summary

Executive summary

• Achieved record leasing volume in 2025, with 2.5 million sq ft leased, surpassing guidance by 1 million sq ft and representing 16% of the portfolio, driven by strong demand for renovated, amenity-rich office spaces in Sunbelt markets.

• Portfolio generated positive cash Same Store NOI growth for five consecutive years, despite sector challenges.

• Leased percentage of in-service portfolio increased by 1.2% year-over-year to 89.6% at year-end 2025.

• Net loss for Q4 2025 was $43.2 million ($0.35/share), compared to $30.0 million ($0.24/share) in Q4 2024, primarily due to higher interest expense and a $29.8 million loss on early extinguishment of debt.

• Core FFO per diluted share for Q4 2025 was $0.35, down from $0.37 in Q4 2024, reflecting higher interest expense and asset sales.

Financial highlights

• Q4 2025 total revenues were $142.9 million, nearly flat year-over-year.

• Full-year 2025 net loss was $83.6 million ($0.67/share), compared to $79.1 million ($0.64/share) in 2024.

• NAREIT FFO for 2025 was $139.9 million ($1.11/share), down from $180.4 million ($1.44/share) in 2024.

• Core FFO for 2025 was $177.7 million ($1.41/share), compared to $185.6 million ($1.49/share) in 2024.

• Same Store NOI increased 2.2% on a cash basis and decreased 0.6% on an accrual basis in Q4 2025 year-over-year.

Outlook and guidance

• 2026 Core FFO guidance is $1.47-$1.53 per diluted share, up $0.08 at midpoint over 2025.

• Projected property NOI increase of $0.08-$0.13 per share and decreased interest expense of $0.01-$0.02 per share.

• Expected leasing activity of 1.7-2 million sq ft in 2026, with year-end lease percentage of 89.5%-90.5%.

• Out-of-service assets expected to stabilize at 85–90% leased and return to in-service by end of 2026.

• Same Store NOI projected to increase 3–6% on both cash and accrual basis in 2026.