Piedmont Realty Trust, Inc. · NYSE:PDM
Piedmont Realty Trust — Piedmont Office Realty Trust — NAREIT Investor Forum 2010
24 slides from Piedmont Realty Trust's conference presentation, Jun 8, 2010
Slide 1: Piedmont Office Realty Trust
Exhibit 99.1 1201 Eye Street, Washington, D.C. © 2010 Piedmont Office Realty Trust, Inc.
Slide 2: Introduction
Introduction Piedmont Office Realty Trust, Inc. (NYSE: PDM) is a fully-integrated and self-managed real estate investment trust (“REIT”) specializing in the acquisition, ownership, management, development and disposition of primarily high-quality Class A office buildings located predominatelyin larg
Slide 3: Forward-Looking Statements
Forward-Looking Statements Certain statements contained in this presentationconstitute forward-lookingstatements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
Slide 4: Investment Summary
Investment Summary • Class A office properties in major U.S. markets • Strong relationships with high-credit quality, diverse tenant base • Demonstrated capital allocation track record • Focused investment strategy in select markets • “Fortress” balance sheet with capacity for growth • Experienced a
Slide 5: Class A Office Properties in Major U.S. Markets
Class A Office Properties in Major U.S. Markets 200 & 400 Bridgewater Crossing, Bridgewater, NJ 1055 East Colorado Boulevard, Pasadena, CA 4 © 2010 Piedmont Office Realty Trust, Inc.
Slide 6: High-Quality Class A Portfolio
High-Quality Class A Portfolio (1) • 73 office properties • 20.2 million square feet • 52% CBD, 34% Suburban & 14% Urban In-fill • Weighted average remaining lease term of 5.7 years • Median building age of 11 years • 68% of Annualized Lease Revenue comes from government or investment grade tenants.
Slide 7: High-Quality Class A Office Buildings in Key Markets
High-Quality Class A Office Buildings in Key Markets (1) 6% Minneapolis 4% Detroit Boston (2) 26% 4% 16% New York Metro Chicago 20% Washington DC 6% Nashville 1% Los 1% Angeles 2% Phoenix 4% Atlanta Dallas Florida 1% Tampa Headquarters Regional Office “Concentration” Markets “Opportunistic” Markets
Slide 8: Strong Relationships with High Credit Quality, Diverse Tenant Base
Strong Relationships with High Credit Quality, Diverse Tenant Base One Brattle Square, Cambridge, MA One Independence Square, Washington, D.C. 7 © 2010 Piedmont Office Realty Trust, Inc.
Slide 9: Strong Tenant Credit-Quality
Strong Tenant Credit-Quality Tenant Diversification Tenant Name Lease Expiration (1) Percentage of ALR (%) (2) S&P Credit Rating / AmLaw 100 Ranking (3) U.S. Government ** 13.0 AAA BP Corporation (4) 2013 5.5 AA Leo Burnett 2019 4.8 BBB+ US Bancorp 2014 3.8 A+ Winston & Strawn 2024 3.2 AmLaw #34 Nes
Slide 10: Robust Industry Diversification
Robust Industry Diversification Industry Diversification (1) (% of ALR (2)) (%) 20 17.5 16.2 15 12.0 9.6 10 6.7 6.2 5.5 4.3 5 3.7 3.3 3.3 3.0 2.6 2.3 2.1 1.7 0 No industry other than a government entity accounts for more than 12% of ALR Notes: (1) Industry determinations are made generally in accord
Slide 11: Expiration & Retention
Expiration & Retention 3/31/2010 Lease Expiry Profile (% of ALR (1)) (%) 25 24.8 4.8 20 15 14.0 12.6 11.5 3.3 6.3 0.2 9.3 10 20.0 0.6 7.2 7.5 5.5 4.9 1.5 0.3 11.3 5 9.3 8.7 0.2 7.7 7.2 2.7 5.2 0.2 6.0 4.7 2.5 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 Thereafter Non-Government Lease Government L
Slide 12: Demonstrated Capital Allocation Track Record
Demonstrated Capital Allocation Track Record 1901 Market Street, Philadelphia, PA 2120 West End Ave., Nashville, TN Two Pierce Place, Itasca, IL 11 © 2010 Piedmont Office Realty Trust, Inc.
Slide 13: Proven Capital-Recycling Discipline
Proven Capital-Recycling Discipline ($MM) Transaction History (1) 5,000 ($MM) 5,002 1998 – 2004 2005 – 2010 Asset Acquisitions 5,002.4 464.4 % of Total Acquisitions 92% 8% Asset Dispositions (3) 59.4 1,009.2 1,000 % of Total Dispositions 6% 94% Cost 44.3 790.8 Value Creation (2) 15.1 218.5 Special D
Slide 14: Focused Investment Strategy in Select Markets
Focused Investment Strategy in Select Markets 800 N. Brand Blvd., Glendale, CA 60 Broad Street, New York, NY 1225 Eye Street, Washington, D.C. 13 © 2010 Piedmont Office Realty Trust, Inc.
Slide 15: Acquisitions
Acquisitions • “Concentration” Markets – High barriers to entry, i.e. high replacement cost, Portfolio Evolution limited land supply, challenging entitlement process, ($MM) local environmental restrictions 1998 – 2004 2005 – 2010 – Long-term growth opportunities and greater market stability Net Tran
Slide 16: Dispositions
Dispositions • Non-strategic Markets – Low barriers to entry, i.e. high development propensity, abundant supply of land Dispositions: 2005 and After – Limited growth opportunities and/or greater market – Sold 36 Properties volatility – Exited 16 Non-Concentration Markets – Detroit, Denver, Cleveland
Slide 17: "Fortress" Balance Sheet with Capacity for Growth
“Fortress” Balance Sheet with Capacity for Growth Piedmont Pointe I and II, Washington D.C. Eastpointe Corp. Center, Issaquah, WA 16 © 2010 Piedmont Office Realty Trust, Inc.
Slide 18: Low Leverage and Stable Portfolio Enhance Access to Liquidity
Low Leverage and Stable Portfolio Enhance Access to Liquidity Capitalization and Operating Stats ($MM) 3/31/2010 Total Assets and Debt (1) by Maturity Date ($MM) Total Debt $ 1,403 $4,500 Equity Market Capitalization $ 3,424 Total Market Capitalization $ 4,827 $4,000 Book Value of Equity $ 2,844 $3,
Slide 19: Experienced & Committed Management Team
Experienced & Committed Management Team AON Center, Chicago, IL Glenridge Highlands II, Atlanta, GA Copper Ridge Center, Lyndhurst, NJ 18 © 2010 Piedmont Office Realty Trust, Inc.
Slide 20: Management Team
Management Team Donald A. Miller, CFA Raymond L. Owens President, Director and Chief Executive Officer Executive Vice President, Capital Markets • 25 years of experience • 27 years of experience • 2007 – 2010 President, Director and CEO, Piedmont • 2007 – 2010 Exec. VP, Piedmont • 2003 – 2007 Chief
Slide 21: Corporate Governance Profile
Corporate Governance Profile • 7 out of 8 Board members are independent • Annual election of all Board members • Board compensation includes restricted stock • Board members have investment in Piedmont Board of Directors the Company Relevant Independent Director Experience Year Joined Board W. Wayne
Slide 22: Investment Highlights
Investment Highlights • High-quality Class A portfolio – Geographically diversified with 73 office buildings comprising over 20 million square feet – 68% of ALR from government agencies or investment grade companies – Weighted average remaining lease term of 5.7 years • Focused asset / property mana
Slide 23: 2010 Recent Events
2010 Recent Events • Financing and Capital Activity – Issuer rating upgraded by Moody’s from Baa3 with a positive outlook to Baa2 with a stable outlook – Under contract to sell 111 Sylvan Avenue in Englewood Cliffs, NJ 111 Sylvan Avenue, Englewood Cliffs, NJ 22 © 2010 Piedmont Office Realty Trust, I
Slide 24: 2010 Recent Events
2010 Recent Events • Operations – Lease extension signed with State Street Bank for 234,668 square feet at 1200 Crown Colony Drive in Quincy, MA – Lease extension and expansion signed with Advanced Micro Devices for 132,857 square feet at 90 Central Street in Boxborough, MA – Lease extension and exp
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