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Piedmont Office
(NYSE:PDM)
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Rating:54Neutral
Price Target:
$9.50
â–¼(-4.04% Downside)
Action:Reiterated
Date:09/15/26
PDM scores modestly above the low end mainly because cash flow improved materially and the earnings call showed strong leasing momentum with raised 2026 guidance. Offsetting that, financial performance remains constrained by sharply declining revenue and ongoing net losses, while technical indicators point to weak near-term momentum and valuation is hampered by negative earnings and a suspended dividend.
Positive Factors
Leasing momentum and rent growth
Strong leasing volume, double-digit rent increases, and a sizable executed pipeline provide visible support for occupancy, same-store NOI, and future cash earnings. These gains indicate improving pricing power and create a durable revenue bridge as signed leases commence over the coming quarters.
Negative Factors
Declining revenue and persistent losses
Sharp top-line contraction combined with recurring net losses indicates that portfolio-level operating strength has not yet translated into sustainable company-wide profitability. Continued earnings pressure can limit retained cash, weaken returns on equity, and make funding growth or restoring shareholder distributions more difficult.
Read all positive and negative factors
Positive Factors
Negative Factors
Leasing momentum and rent growth
Strong leasing volume, double-digit rent increases, and a sizable executed pipeline provide visible support for occupancy, same-store NOI, and future cash earnings. These gains indicate improving pricing power and create a durable revenue bridge as signed leases commence over the coming quarters.
Read all positive factors
Piedmont Office (PDM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.14B
Dividend Yield7.07%
Average Volume (3M)1.85M
Price to Earnings (P/E)―
Beta (1Y)0.79
Revenue Growth0.70%
EPS Growth-17.55%
CountryUS
Employees140
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)-0.65
Shares Outstanding125,132,830
10 Day Avg. Volume1,656,002
30 Day Avg. Volume1,845,819
Financial Highlights & Ratios
PEG Ratio-2.66
Price to Book (P/B)0.69
Price to Sales (P/S)1.84
P/FCF Ratio-62.23
Enterprise Value/Market Cap2.97
Enterprise Value/Revenue5.93
Enterprise Value/Gross Profit31.50
Enterprise Value/Ebitda12.02
Forecast
1Y Price Target
$11.00Price Target Upside11.11% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.21
Revenue Forecast (FY)$583.30M
Piedmont Office Business Overview & Revenue Model
Company Description
Piedmont Office Realty Trust, Inc. (PDM), traded on the NYSE, is a real estate investment trust that acquires, manages, develops, and operates premium, Class A office properties. These assets are strategically situated in key sub-markets across se...
How the Company Makes Money
Piedmont Office Realty Trust primarily makes money by leasing office space in its owned properties to commercial tenants and collecting contractual rent and related property income. The main revenue streams typically include: (1) base (minimum) re...
Piedmont Office Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 26, 2026
Earnings Call Sentiment Positive
The call presented a strong operational quarter with accelerating leasing momentum, meaningful rent growth, record net effective rents, improved same-store NOI, and proactive balance sheet actions. Management raised full-year guidance and outlined clear leverage targets while highlighting a sizable $39M of lease revenue yet to commence that will bolster earnings. Notable risks included sector-wide skepticism, a delayed large NYC lease, continued lumpy capex impacting short-term free cash flow, and a still-cautious transaction market. Overall, the positive operating and financial developments materially outweigh the challenges discussed.Positive Updates
Beat Consensus and Raised Full-Year Guidance
Core FFO per diluted share of $0.38 for Q2 2026, $0.01 ahead of consensus and $0.02 higher year-over-year; company raised 2026 core FFO guidance to $1.50–$1.55 (midpoint +$0.025) implying >8% earnings growth.
Negative Updates
Timing/Execution Uncertainty on NYC Lease
Large City of New York lease at 60 Broad remains in process and likely will not conclude until Q4 2026; tenant is currently in holdover (with contractual remedies) and portions of the signed volume may not generate GAAP rent until 2027.
Read all updates
Q2-2026 Updates
Positive
Negative
Beat Consensus and Raised Full-Year Guidance
Core FFO per diluted share of $0.38 for Q2 2026, $0.01 ahead of consensus and $0.02 higher year-over-year; company raised 2026 core FFO guidance to $1.50–$1.55 (midpoint +$0.025) implying >8% earnings growth.
Read all positive updates
Company Guidance
Management raised 2026 guidance, increasing annual core FFO to $1.50–$1.55 per diluted share (midpoint +$0.025 vs. prior, implying >8% y/y growth) and boosting same‑store NOI (cash & GAAP) to +5%–8% (up 200 bps); Q2 core FFO was $0.38 (+$0.01 vs. consensus; +$0.02 y/y) and AFFO was ≈$31M. Key drivers cited include a portfolio approaching ~90% leased with economic occupancy >80% in‑service, Q2 leasing of 460k SF with +14% cash / +32% accrual rent increases, a weighted average starting cash rent of $43.79/sf (+5% q/q), quarterly net effective rent after capex of $25.56/sf (up >20% vs. prior 12‑month avg), and an executed pipeline of ~900k SF (~$39M of annualized cash rents, ≈570 bps of occupancy) that should compress the leased/commenced spread to ~400 bps by year‑end and help total lease volume reach the high end of guidance (~2.0M SF). Balance sheet highlights: term loan refinanced to $400M (matures May 2031; spread tightened 15 bps), no maturities until 2028, $600M revolver capacity and ~$17M cash at 6/30, WACD ~5.5%, and management expects net debt/EBITDA to trend below 7x by year‑end (intermediate target ~6.5x in 2027–28 and longer‑term ~6x); guidance excludes speculative acquisitions, dispositions, or refinancings.Piedmont Office Financial Statement Overview
Summary
Income Statement
36
Negative
Balance Sheet
58
Neutral
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 569.43M | 564.99M | 570.32M | 577.76M | 563.77M | 528.71M |
| Gross Profit | 107.16M | -117.06M | 336.20M | 342.67M | 337.71M | 317.78M |
| EBITDA | 280.84M | 268.52M | 264.85M | 279.73M | 427.88M | 249.40M |
| Net Income | -80.72M | -83.60M | -79.07M | -48.39M | 146.83M | -1.15M |
Balance Sheet | ||||||
| Total Assets | 4.05B | 4.03B | 4.11B | 4.06B | 4.09B | 3.93B |
| Cash, Cash Equivalents and Short-Term Investments | 16.79M | 731.00K | 109.64M | 825.00K | 16.54M | 7.42M |
| Total Debt | 2.27B | 2.27B | 2.51B | 2.10B | 2.04B | 1.88B |
| Total Liabilities | 2.57B | 2.53B | 2.53B | 2.33B | 2.24B | 2.14B |
| Stockholders Equity | 1.47B | 1.50B | 1.59B | 1.72B | 1.85B | 1.79B |
Cash Flow | ||||||
| Free Cash Flow | 31.69M | -16.68M | -14.00M | 51.94M | 93.86M | 119.58M |
| Operating Cash Flow | 179.20M | 140.56M | 198.11M | 210.13M | 215.22M | 242.20M |
| Investing Cash Flow | -198.26M | -175.35M | -186.62M | -196.02M | -1.25M | -368.93M |
| Financing Cash Flow | 32.99M | -75.31M | 98.18M | -29.50M | -203.23M | 126.38M |
Piedmont Office Technical Analysis
Neutral
9.90
Price Trends
9.38
Negative
9.29
Negative
8.55
Positive
Market Momentum
-0.10
Negative
46.41
Neutral
74.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PDM, the sentiment is Neutral. The current price of 9.9 is above the 20-day moving average (MA) of 9.11, above the 50-day MA of 9.38, and above the 200-day MA of 8.55, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 46.41 is Neutral, neither overbought nor oversold. The STOCH value of 74.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PDM.
Piedmont Office Risk Analysis
Piedmont Office disclosed 56 risk factors in its most recent earnings report. Piedmont Office reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Piedmont Office Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
56 Neutral | $3.25B | 19.58 | 7.09% | 6.72% | 3.30% | 28.46% | |
54 Neutral | $1.14B | -14.00 | -5.39% | 7.07% | 0.70% | -17.55% | |
53 Neutral | $4.56B | 676.89 | 0.14% | 4.60% | 11.89% | -89.22% | |
53 Neutral | $675.72M | -1.37 | -18.64% | 2.06% | 2.54% | 54.94% | |
50 Neutral | $1.65B | -71.96 | -1.21% | 7.73% | 0.78% | -167.70% | |
45 Neutral | $471.00M | -3.26 | -18.69% | 11.99% | 0.51% | 56.07% |
* Real Estate Sector Average
PDM
Piedmont Office
9.10
0.95
11.66%
CUZ
Cousins Properties
27.82
2.67
10.63%
DEI
Douglas Emmett
9.83
-2.89
-22.75%
HIW
Highwoods Properties
29.76
2.02
7.29%
HPP
Hudson Pacific Properties
12.15
-6.12
-33.50%
BDN
Brandywine Realty
2.67
-0.65
-19.48%
Piedmont Office Corporate Events
Business Operations and StrategyStock BuybackPrivate Placements and Financing
Piedmont Office Prices Exchangeable Notes, Refinances Debt
Positive
Sep 15, 2026
On September 14, 2026, Piedmont Realty Trust’s operating partnership priced a $200 million private offering of 2.875% exchangeable senior notes due 2031 to qualified institutional buyers, with Piedmont guaranteeing the notes on a senior, uns...
Business Operations and StrategyStock BuybackM&A TransactionsPrivate Placements and Financing
Piedmont Office Acquires Ballston Asset, Plans Note Offering
Positive
Sep 14, 2026
Piedmont Realty Trust has recently reshaped its office portfolio and capital structure, reflecting a strategic focus on high-quality, defense- and technology-oriented submarkets. On August 27, 2026, the company sold a 10.6-acre land parcel in Dall...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.