Piedmont Realty Trust, Inc. · NYSE:PDM
Piedmont Realty Trust — Piedmont Office Realty Trust — NAREIT REITworld Conference 2020
24 slides from Piedmont Realty Trust's conference presentation, November 2020
Slide 1: NAREIT REITworld Conference November 2020
NAREIT REITworld Conference November 2020
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 in select sub-markets located primarily within seven major eastern U.S. office mar
Slide 3: COVID-19 Update
COVID-19 UPDATE › COVID-19 Update Rent Collections (% of Rent Obligations) 5 Wayside, Boston 100% 99% › About Us 99% › Why PDM? › Distinct Portfolio › Capital Recycling › Income Growth › Tenant Quality › Clean Balance Sheet Q1'20 Q2'20 Q3'20 › ESG Commitment Strength of Tenant Profile • Top 20 tenan
Slide 4: COVID-19 Update: Trends – Past, Present and Future
COVID-19 UPDATE › COVID-19 Update Trends – Past, Present and Future One Galleria Office Tower, Dallas › About Us Pre-COVID Trends › Why PDM? • Pro-business environments and impact of SALT driving migration › Distinct Portfolio • Millennial family formation › Capital Recycling Influenced PDM • Work-l
Slide 5: About Piedmont
ABOUT PIEDMONT Atlanta Piedmont owns and operates high- Piedmont Quick Facts Galleria, Central Perimeter quality Class A office buildings • 18% Annualized Lease Revenue › COVID-19 Update Assets 54 located primarily in seven of the • 9 assets › About Us largest Eastern U.S. office Square Footage 16.4
Slide 6: Why Piedmont?
WHY PIEDMONT? • Piedmont’s portfolio is highly concentrated in › COVID-19 Update US Bancorp Center, Minneapolis distinct submarkets; balance of easily accessible › About Us CBD and Urban Infill/Hub-urban locations across › Why PDM? our core markets. › Distinct Portfolio • Piedmont has aggressively r
Slide 7: Piedmont's Distinct Portfolio
PIEDMONT’S DISTINCT PORTFOLIO We have assembled highly-concentrated and dominant nodes within select submarkets of the nation’s healthiest MSAs. › COVID-19 Update Galleria 600, Atlanta Atlanta 15% › About Us Cumberland/Galleria Class A Submarket Share › Why PDM? 2.1M SF within ½ mile radius +10% › D
Slide 8: Piedmont's Capital Recycling
PIEDMONT’S CAPITAL RECYCLING Since early 2019, Piedmont has sold over $1 billion of assets, redeploying capital into quality assets within targeted submarkets yielding ~185 bps higher yield than the disposed assets. › COVID-19 Update Decreased Exposure / Exit › About Us Market Decision Influencers A
Slide 9: Poised for Growth
POISED FOR GROWTH Compelling Upside Minimal Downside › COVID-19 Update Embedded Cash Flow Growth Lease Expiration Schedule (Cumulative) › About Us › Why PDM? $ millions % of ALR › Distinct Portfolio 40 39 10% › Capital Recycling NY City, 8% 30 3.0% › Income Growth 25 25 6% › Tenant Quality 20 › Clea
Slide 10: Growth Through Reinvestment
GROWTH THROUGH REINVESTMENT › COVID-19 Update US Bancorp, Minneapolis › About Us The Case for Redevelopment Completed 2019 › Why PDM? Compelling pro-forma returns Begin Net Book Basis $169/SF - Unique environments garner premium rents Est. investment $9/SF › Distinct Portfolio Pro-forma basis $178/S
Slide 11: Land Bank for an Additional Three Million Square Feet
LAND BANK FOR AN ADDITIONAL THREE MILLION SQUARE FEET Piedmont owns several land parcels adjacent to existing core holdings to support significantly pre-leased development opportunity. › COVID-19 Update › About Us › Why PDM? › Distinct Portfolio › Capital Recycling › Income Growth › Tenant Quality ›
Slide 12: Strong Tenant Base
STRONG TENANT BASE Piedmont’s rental revenues are generated from a secure and diversified roster of companies. › COVID-19 Update Tenant Credit Profile Galleria 400, Atlanta › About Us › Why PDM? › Distinct Portfolio Investment Grade Rating › Capital Recycling and Nationally › Income Growth Recognize
Slide 13: Strong and Simple Balance Sheet
STRONG AND SIMPLE BALANCE SHEET Liquidity Position › COVID-19 Update CNL Center, Orlando › About Us $500M $32M $0 Available on Cash on Hand Debt Maturing › Why PDM? Unsecured Line Until Late 2021 › Distinct Portfolio Maturity Schedule › Capital Recycling › Income Growth $400 $350 › Tenant Quality $3
Slide 14: Commitment to ESG – Direct Board Oversight
COMMITMENT TO ESG – DIRECT BOARD OVERSIGHT 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 › COVID-19 Update dedicated to environmentally sust
Slide 15: Appendix
APPENDIX
Slide 16: Piedmont's Compelling Value Proposition
PIEDMONT’S COMPELLING VALUE PROPOSITION › Value Proposition Implied Cap Rate › Market Snapshots 8.3% 8.3% 7.6% 7.5% 7.1% 6.9% 6.8% 6.7% 6.7% 6.6% 6.6% 6.5% 6.4% 6.3% 5.9% 5.5% BDN PDM OFC HIW ESRT PGRE VNO JBGS KRC SLG CLI HPP CUZ WRE BXP DEI Source: GreenStreet Advisors implied Cap Rate Next 12 mos
Slide 17: Atlanta
ATLANTA › Value Proposition Galleria 100 Properties 9 › Market Snapshots Total SF 3.4M Leased 86% % of PDM ALR 18% % of PDM SF 21% % CBD 0% % Urban Infill / Hub-urban 100% Glenridge Highlands I & II 1155 Perimeter Glenridge Highlands I Glenridge Highlands II Galleria The Medici 16 Yellow markers ind
Slide 18: Boston
BOSTON › Value Proposition Properties 10 5 Wall St › Market Snapshots Total SF 1.9M Leased 92% % of PDM ALR 11% % of PDM SF 11% % CBD 0% % Urban Infill / Hub-urban 100% 225 &235 Presidential Way One Brattle Square 5 Wall St 25 Burlington Mall Road One Wayside 5 & 15 Wayside 1414 Mass Ave One Brattle
Slide 19: Dallas
DALLAS › Value Proposition Properties 13 6031 Connection Drive › Market Snapshots Total SF 3.5M Leased 86% % of PDM ALR 20% % of PDM SF 22% % CBD 0% % 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
Slide 20: Minneapolis
MINNEAPOLIS › Value Proposition US Bancorp Center Properties 6 › Market Snapshots Total SF 2.1M Leased 94% % of PDM ALR 13% % of PDM SF 13% % CBD 52% % Urban Infill / Hub-urban 48% Crescent Ridge US Bancorp Center US Bancorp Center 9320 Excelsior Boulevard I & II Meridian Crossing Norman Pointe 19
Slide 21: New York
NEW YORK 60 Broad › Value Proposition Properties 1 › Market Snapshots Total SF 1.0M Leased 95% % of PDM ALR 10% % of PDM SF 6% % CBD 100% % Urban Infill / Hub-urban 0% 60 Broad Street 20
Slide 22: Orlando
ORLANDO CNL Center I & II › Value Proposition Properties 6 › Market Snapshots Total SF 1.8M Leased 93% % of PDM ALR 10% % of PDM SF 11% % CBD 83% % Urban Infill / Hub-urban 17% 200 South Orange 400 & 500 Town Park 501 W Church Street 200 South Orange CNL Center I & II 21 Yellow markers indicate land
Slide 23: Washington
WASHINGTON › Value Proposition Properties 6 Arlington Gateway › Market Snapshots Total SF 1.6M Leased 82% % of PDM ALR 14% % of PDM SF 10% % CBD 43% % Urban Infill / Hub-urban 57% 3100 Clarendon 1201 Eye Street Arlington Gateway 1225 Eye Street 4250 N Fairfax Drive 3100 Clarendon 400 Virginia Avenue
Slide 24: www.piedmontreit.com
www.piedmontreit.com 770-418-8800
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