Piedmont Realty Trust, Inc. · NYSE:PDM
Piedmont Realty Trust — Piedmont Office Realty Trust — Citi 2023 Global Property CEO Conference
29 slides from Piedmont Realty Trust's conference presentation, March 2023
Slide 1: Investor Update
999 and 1180 Peachtree Street INVESTOR UPDATE Citi 2023 Global Property CEO Conference March 2023
Slide 2: Introduction
INTRODUCTION Piedmont Office Realty Trust, Inc. (also referred to herein as “Piedmont” or the “Company”) (NYSE: PDM) is an owner, manager, developer, redeveloper and operator of high-quality, Class A office properties located primarily in major U.S. Sunbelt markets. Its approximately $5 billion port
Slide 3: Piedmont Overview
PIEDMONT OVERVIEW Piedmont Quick Facts Focused on distinct office Assets1 51 › Piedmont Overview nodes in the Sunbelt. Square Footage1 16.7 million › Leasing Opportunity Percent Leased1 86.7% › Financial Growth Weighted Average Lease Term 5.6 years › Concentrated Nodes Vibrant, active, unique Percen
Slide 4: Positioned to Capture Leasing Opportunities
POSITIONED TO CAPTURE LEASING OPPORTUNITIES Post-Pandemic Leasing Trends › Piedmont Overview ~8.2 Yrs. 10% / 17% ~60% › Leasing Opportunity of weighted average term(1) cash / accrual roll up(2) Increase in › Financial Growth <15K SF new deals(3) › Concentrated Nodes › Capital Allocation Leasing Oppo
Slide 5: Targeted High Service Offering to Small & Medium-Sized Tenants
TARGETED HIGH SERVICE OFFERING TO SMALL & MEDIUM-SIZED TENANTS Average Lease Size (Square Footage) Over Time Piedmont Offering › Piedmont Overview › Leasing Opportunity 45,000 Highly amenitized, “full › Financial Growth 40,000 service” offering at an › Concentrated Nodes › Capital Allocation attract
Slide 6: Consistent Cash Rent Roll-Ups
CONSISTENT CASH RENT ROLL-UPS › Piedmont Overview 5 – 10 % cash flow growth embedded in lease rate mark-to-market › Leasing Opportunity › Financial Growth › Concentrated Nodes One Lincoln Park › Capital Allocation › Peer Group Leader 9.8% 9.7% › Financial Flexibility › Focus on ESG › Summary – Why P
Slide 7: Highly Concentrated Office Nodes Within Distinct Mixed-Use Environments
HIGHLY CONCENTRATED OFFICE NODES WITHIN DISTINCT MIXED-USE ENVIRONMENTS Dominant nodes within select submarkets of the nation’s healthiest MSAs located primarily in the Sunbelt. › Piedmont Overview Atlanta – Cumberland / Galleria Submarket Orlando – CBD Submarket › Leasing Opportunity 19% premium $3
Slide 8: Investment Strategy: 1.3M SF on Peachtree Street in Midtown Atlanta
INVESTMENT STRATEGY: 1.3M SF ON PEACHTREE STREET IN MIDTOWN ATLANTA Executed within a 12-month period of time Core Plus Acquisition › Piedmont Overview 1180 Peachtree Street, Atlanta, GA (~$465M) › Leasing Opportunity › Financial Growth Trophy Quality ✓ Premier location ✓ Modernized and well-ameniti
Slide 9: Ongoing Portfolio Transition
ONGOING PORTFOLIO TRANSITION Since late 2020, Piedmont has rotated out of New Jersey, Chicago, Cambridge and Woburn, MA to acquire in Midtown Atlanta. As market conditions allow, Piedmont anticipates accelerated dispositions of non-core or › Piedmont Overview fully-valued assets to fund targeted inv
Slide 10: Redevelopment Case Study - Galleria 200
REDEVELOPMENT CASE STUDY - GALLERIA 200 Rental Rates: Redevelopment and Placemaking Driving Growth1 › Piedmont Overview PLACEMAKING INVESTMENTS RENTAL › Leasing Opportunity RATE $36.50 ✓ Hospitality Environment › Financial Growth GROWTH › Concentrated Nodes ✓ Starbucks $30.25 › Capital Allocation ✓
Slide 11: Creating Unique Office Environments to Drive Rental Rate and Velocity
CREATING UNIQUE OFFICE ENVIRONMENTS TO DRIVE RENTAL RATE AND VELOCITY The Case for Redevelopment › Piedmont Overview › Leasing Opportunity • Compelling pro-forma investment returns 999 Peachtree, Atlanta › Financial Growth Projected completion 2023 ‐ Unique environments garner premium › Concentrated
Slide 12: Development Land Bank for Up to an Additional Three Million Square Feet
DEVELOPMENT LAND BANK FOR UP TO AN ADDITIONAL THREE MILLION SQUARE FEET Sunbelt land parcels adjacent to existing core holdings to support significantly pre-leased development opportunities. › Piedmont Overview › Leasing Opportunity › Financial Growth › Concentrated Nodes › Capital Allocation › Peer
Slide 13: Peer Leader in 2022 Key Metrics
PEER LEADER IN 2022 KEY METRICS (Through December 31, 2022) Trailing Four Quarters of Total Office Leasing as a Percentage of Office Portfolio1,2 13.0% › Piedmont Overview 12.2% 12.1% 10.5% › Leasing Opportunity › Financial Growth › Concentrated Nodes › Capital Allocation PDM BDN HIW CUZ › Peer Grou
Slide 14: Financial Flexibility
FINANCIAL FLEXIBILITY CNL Center II Liquidity Position › Piedmont Overview $600M $17M $0M $215M › Leasing Opportunity Available on Cash on Hand Debt Maturing Term Loan Until Mid-2023 Closed & Funded › Financial Growth Unsecured Line Subsequent to Year End › Concentrated Nodes › Capital Allocation De
Slide 15: Committed to Being a Leader in ESG Initiatives
COMMITTED TO BEING A LEADER IN ESG INITIATIVES Environmental Responsibility Social Responsibility Corporate Governance On behalf of all our stakeholders, Piedmont is Piedmont helps meet the needs of each local Based upon best business practices for all › Piedmont Overview dedicated to environmentall
Slide 16: Why Piedmont?
WHY PIEDMONT? › Piedmont Overview › Leasing Opportunity • Highly concentrated office nodes in › Financial Growth submarkets that offer vibrant › Concentrated Nodes mixed-use environments › Capital Allocation › Peer Group Leader • Compelling growth potential › Financial Flexibility through accretive
Slide 17: Atlanta (Midtown, Cumberland/Galleria, Central Perimeter)
ATLANTA (MIDTOWN, CUMBERLAND/GALLERIA, CENTRAL PERIMETER) 1180 Peachtree Street Glenridge Highlands › Piedmont Overview › Leasing Opportunity › Financial Growth › Concentrated Nodes › Capital Allocation › Peer Group Leader › Financial Flexibility › Focus on ESG › Summary – Why Piedmont › Property Ph
Slide 18: Dallas (Lower North Tollway, Uptown, Preston Center, Las Colinas)
DALLAS (LOWER NORTH TOLLWAY, UPTOWN, PRESTON CENTER, LAS COLINAS) › Piedmont Overview › Leasing Opportunity › Financial Growth › Concentrated Nodes › Capital Allocation › Peer Group Leader › Financial Flexibility Park Place on Turtle Creek Dallas Galleria Tenant Lounge Rendering › Focus on ESG › Sum
Slide 19: Orlando (Downtown, Lake Mary)
ORLANDO (DOWNTOWN, LAKE MARY) › Piedmont Overview › Leasing Opportunity › Financial Growth › Concentrated Nodes › Capital Allocation › Peer Group Leader › Financial Flexibility › Focus on ESG CNL Center I & II › Summary – Why Piedmont › Property Photos 200 South Orange Ave 200 South Orange Ave 200 S
Slide 20: Boston (Burlington)
BOSTON (BURLINGTON) 25 Burlington Mall Rd › Piedmont Overview › Leasing Opportunity › Financial Growth › Concentrated Nodes › Capital Allocation › Peer Group Leader › Financial Flexibility 25 Burlington Mall Rd › Focus on ESG › Summary – Why One Wayside Road 5 & 15 Wayside Rd Piedmont › Property Pho
Slide 21: Appendix
APPENDIX
Slide 22: Atlanta
ATLANTA › Market Snapshots Galleria 100 Properties 11 Total SF 4.7M Leased 85% % of PDM ALR 27% % of PDM SF 28% % CBD 36% % Urban Infill / Hub-urban 64% Glenridge Highlands Galleria 1155 Perimeter Glenridge Highlands I Glenridge Highlands II 1180 Peachtree The Medici 999 Peachtree 21 Yellow markers
Slide 23: Boston
BOSTON 25 Burlington Mall Road › Market Snapshots Properties 6 Total SF 1.3M Leased 91% % of PDM ALR 8% % of PDM SF 8% % CBD 0% 5 Wall Street % Urban Infill / Hub-urban 100% 5 Wall St 25 Burlington Mall Road One Wayside 5 & 15 Wayside 22
Slide 24: Dallas
DALLAS › Market Snapshots Properties 13 Total SF 3.5M Leased 82% % of PDM ALR 19% % of PDM SF 21% % CBD 0% Las Colinas Corporate Center % Urban Infill / Hub-urban 100% 6565 N MacArthur Blvd Las Colinas Corporate Ctr I & II Park Place at Turtle Creek Galleria Office Towers 161 Corporate Center One Li
Slide 25: Minneapolis
MINNEAPOLIS US Bancorp Center › Market Snapshots Properties 6 Total SF 2.1M Leased 92% % of PDM ALR 12% % of PDM SF 13% % CBD 51% % Urban Infill / Hub-urban 49% Crescent Ridge II Crescent Ridge US Bancorp Center 9320 Excelsior Boulevard I & II Meridian Crossing Norman Pointe Crescent Ridge II 24
Slide 26: New York
NEW YORK 60 Broad Street › Market Snapshots Properties 1 Total SF 1.0M Leased 86% % of PDM ALR 9% % of PDM SF 6% % CBD 100% % Urban Infill / Hub-urban 0% 60 Broad Street 25
Slide 27: Orlando
ORLANDO1 › Market Snapshots 200 South Orange Avenue Properties 6 Total SF 1.8M Leased 95% % of PDM ALR 10% % of PDM SF 11% % CBD 83% % Urban Infill / Hub-urban 17% 400 & 500 Town Park CNL Center I & II 501 W Church Street 200 & 222 South Orange CNL Center I & II Downtown Northern I-4 Corridor Yellow
Slide 28: Northern Virginia and Washington, D.C.
NORTHERN VIRGINIA AND WASHINGTON, D.C. › Market Snapshots Arlington Gateway Properties 6 Total SF 1.6M Leased 79% % of PDM ALR 12% % of PDM SF 10% % CBD 44% % Urban Infill / Hub-urban 56% 3100 Clarendon 1201 Eye Street Arlington Gateway 1225 Eye Street 4250 N Fairfax Drive 3100 Clarendon 400 Virgini
Slide 29: Corporate Headquarters and Analyst Contact
www.piedmontreit.com Corporate Headquarters 5565 Glenridge Connector, Suite 450 Atlanta, G A 30342 T: 770.418.8800 Institutional Analyst Contact T: 770.418.8592 E: research.analysts@piedmontreit.com Investor Relations T: 866.354.3485 E: investor.services@piedmontreit.com
Piedmont Office Realty Trust — Citi 2023 Global Property CEO Conference on 6ix