Piedmont Realty Trust, Inc. · NYSE:PDM
Piedmont Realty Trust — Piedmont Office Realty Trust — NAREIT REITweek Convention 2014
21 slides from Piedmont Realty Trust's conference presentation, Nov 4, 2014
Slide 1: Strategic Review
© 2014 Piedmont Office Realty Trust, Inc. 500 West Monroe One Lincoln Park 1201 Eye Street 60 Broad Street Glenridge Highlands II Chicago Dallas Washington D.C. New York Atlanta November 2014 Strategic Review
Slide 2: Company description and forward-looking statements
Piedmont Office Realty Trust, Inc. (also referred to herein as “Piedmont” or the “Company”) (NYSE: PDM) is a fully-integrated and self- managed real estate investment trust (REIT) specializing in the ownership and management of high-quality Class A office buildings located primarily in some of the l
Slide 3: Strategic Progress Since 2010 IPO
Strategic Progress Since 2010 IPO 2 • Leased 72% of the portfolio (15.4 million SF) • 4.0 million SF of leasing completed directly by Piedmont asset management • 94% leased excluding Chicago and Washington D.C. • Purchased $1 billion and sold $804 million in office assets at comparable FFO yields •
Slide 4: Competitive Advantages
Competitive Advantages 3 Top-of-Mind Operator for Large / Corporate Tenants • 10+ year operating track record in each of our nine strategic operating markets • Properties in submarkets where corporations are growing and office property investment (REIT ownership) is fragmented • Meaningful scale— 1.
Slide 5: Corporate Tenant Relationships Drive Our Business
Corporate Tenant Relationships Drive Our Business 4 Our New Business Development platform maintains direct relationships with corporate real estate decision makers at over 150 Fortune 500 companies— 48 are current tenants comprising 22% of ALR and approximately half of those are in multiple location
Slide 6: Investment Philosophies and Strategic Results
Investment Philosophies and Strategic Results 5 Reduced secured debt by $706 million Leverage maintained below 38%(2) Upside of Cycle Unwavering focus on basis Stock price influences capital allocation decisions Invest in value-add assets and land on downside of market cycle Invest in core assets an
Slide 7: Targeting Corporate America
Recent SoCal Corporate Departures • Occidental Petroleum corporate HQ to Texas • Toyota Motor Sales corporate HQ to Texas • Honda North America HQ to Ohio • Chevron moving thousands of jobs to Texas • ThermaSol corporate HQ to Texas • Raytheon’s Space and Airborne Systems HQ to Ohio Chicago Boston N
Slide 8: Local Market Experts in Our Strategic Operating Markets
7 Local Market Experts in Our Strategic Operating Markets Mid-Atlantic Midwest Southwest Southeast Bob Wiberg 25 Years Market Experience Bob.Wiberg@piedmontreit.com 202-651-6434 Chicago Boston New York Metro Washington D.C. Dallas Atlanta Houston George Wells 18 Years Market Experience George.Wells@
Slide 9: Strategy Execution – Going Forward
Strategy Execution – Going Forward 8 Recycle Capital into Core Acquisitions and Development Enhance Portfolio in Strategic Operating Markets • Expected to raise $300+ million through select non-strategic dispositions over the next two years • Expected to raise $400+ million in strategic JV of Aon Ce
Slide 10: Piedmont in the REIT Marketplace
Piedmont in the REIT Marketplace Competitive Metrics Multiple on Cons. 2015 FFO(2) Multiple on Cons. 2015 AFFO(2) Div. Yield(3) (%) Prem / (Disc) to NAV(4) Weighted Lease Term Remain. (Yrs.) Cumulative Maturities 2015 - 2017 SS NOI Growth 2014 - 2016(4) Median Age Leverage Leased Office % Competitiv
Slide 11: Appendix
Appendix 10 AON Center Arlington Gateway Chicago Washington D.C. 5 Wall Street One Lincoln Park Dallas Boston 400 TownPark Orlando US Bancorp Center Minneapolis Atlanta 1155 Perimeter Center West
Slide 12: Our Tenants' Perspectives on the Office Market
Our Tenants’ Perspectives on the Office Market 11 Leasing Plans for the Next 12 Months 2014 2012 Tenant Utilizing Alternative Workplace Strategies (e.g., virtual work, hoteling, etc.) Reduction in Space Due to Alternative Workplace Strategies Green Building Important to Tenant Importance of Landlord
Slide 13: Investment Focus: Atlanta
12 Investment Focus: Atlanta Core Central Perimeter Sources: REIS 2Q 2014, JLL Research 3Q 2014, Bureau of Labor Statistics August 2014 Notes: (1) Represents a two year compound annual growth rate (“CAGR”) using 2014 to 2016 estimates Non-Strategic 8.0% Metro Unemployment 16.1% Class A Vacancy 3.1%
Slide 14: Investment Focus: Boston
13 Investment Focus: Boston Core Sources: REIS 2Q 2014, JLL Research 3Q 2014, Bureau of Labor Statistics August 2014 Notes: (1) Represents a two year compound annual growth rate (“CAGR”) using 2014 to 2016 estimates Non-Strategic 5.5% Metro Unemployment 11.9% Class A Vacancy 2.2% 2014 – 2016 Job Gro
Slide 15: Investment Focus: Chicago
Property Overview Property SF % Leased C B D Aon Center 2,741,000 80.4% 500 West Monroe 966,000 66.3% N o n S tr a te g ic Two Pierce Place 486,000 88.5% Windy Point II 301,000 100.0% Windy Point I 187,000 100.0% 2300 Cabot Drive 153,000 77.1% Target Submarket Performance Submarket Class A Vacancy R
Slide 16: Investment Focus: Dallas
Property Overview Property SF % Leased L as C o li n a s 6011/6021/6031 Connection Drive 606,000 100.0% Las Colinas Corporate Center I & II 387,000 99.2% 6565 North MacArthur 260,000 92.7% 161 Corporate Center 105,000 99.0% Land – Royal Lane N/A N/A Land – State Highway 161 N/A N/A P C One Lincoln P
Slide 17: Investment Focus: Houston
Property Overview Property SF % Leased E n e rg y C o rr id o r 1430 Enclave Parkway 313,000 100.0% Development – Enclave Place Summer 2015 Estimated Delivery 302,000 N/A Target Submarket Performance Submarket Class A Vacancy Rent Growth LTM Next 24 Months(1) Energy Corridor 4.2% 4.9% 6.1% 16 Invest
Slide 18: Investment Focus: Minneapolis
Property Overview Property SF % Leased C B D US Bancorp Center 932,000 85.7% W es t Crescent Ridge II 301,000 87.0% S o u th w es t One Meridian Crossings 195,000 100.0% Two Meridian Crossings 189,000 95.8% Target Submarket Performance Submarket Class A Vacancy Rent Growth LTM Next 24 Months(1) CBD
Slide 19: Investment Focus: New York Metro
Property Overview Property SF % Leased D o w n to w n 60 Broad Street 1,028,000 98.1% NJ N o d e s 200 Bridgewater Crossing 309,000 93.9% 400 Bridgewater Crossing 299,000 100.0% N o n S tr a te g ic 2 Gatehall Drive 405,000 100.0% Copper Ridge Center 268,000 86.6% 600 Corporate Drive 125,000 100.0%
Slide 20: Investment Focus: Orlando
Property Overview Property SF % Leased L ak e M a ry 400 TownPark 176,000 93.2% Land – Lake Mary(3) N/A N/A Target Submarket Performance Submarket Class A Vacancy Rent Growth LTM Next 24 Months(1) Lake Mary 10.2%(2) 1.7% 2.5% 19 Investment Focus: Orlando Core Sources: REIS 2Q 2014, JLL Research 3Q 2
Slide 21: Investment Focus: Washington DC
20 Investment Focus: Washington DC Core Sources: REIS 2Q 2014, JLL Research 3Q 2014, Bureau of Labor Statistics August 2014 Notes: (1) Represents a two year compound annual growth rate (“CAGR”) using 2014 to 2016 estimates Non-Strategic 5.6% Metro Unemployment 15.8% Class A Vacancy 2.3% 2014 – 2016
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