Piedmont Realty Trust, Inc. · NYSE:PDM
Piedmont Realty Trust — Piedmont Office Realty Trust — REITweek 2022
28 slides from Piedmont Realty Trust's conference presentation, November 2022
Slide 1: REITworld November 2022
1180 Peachtree Street REITWORLD November 2022
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 the Sunbelt. Its approximately $5 billion portfolio is curren
Slide 3: Piedmont Overview
PIEDMONT OVERVIEW Piedmont Quick Facts Focused on distinct office Assets1 53 › Piedmont Overview nodes in the Southern U.S. Square Footage1 16.8 million › Leasing Opportunity Percent Leased1 86.8% › Concentrated Nodes Weighted Average Lease Term 5.7 years › Capital Allocation Vibrant, active, unique
Slide 4: Positioned to Capture Leasing Opportunities
POSITIONED TO CAPTURE LEASING OPPORTUNITIES Post-Pandemic Leasing Trends › Piedmont Overview ~8.1 Yrs. 9% 60% › Leasing Opportunity of weighted average term(1) cash roll up(2) Increase in › Concentrated Nodes <15K SF new deals(3) › Capital Allocation › Financial Growth Leasing Opportunities › Peer G
Slide 5: Targeted High Service Offering to Small & Medium-Sized Tenants
TARGETED HIGH SERVICE OFFERING TO SMALL & MEDIUM-SIZED TENANTS Rental Rate Roll Up on Cash Rents Piedmont Offering › Piedmont Overview › Leasing Opportunity 2019 2020 2021 2022 (YTD) Highly amenitized, “full › Concentrated Nodes % Change Cash 9.8% 3.5% 7.5% 10.5% service” offering at an › Capital Al
Slide 6: 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 16% premium $3
Slide 7: Investment Strategy: 1.3M SF on Peachtree Street in Midtown Atlanta
INVESTMENT STRATEGY: 1.3M SF ON PEACHTREE STREET IN MIDTOWN ATLANTA Core Plus Acquisition › Piedmont Overview 1180 Peachtree Street, Atlanta, GA (~$465M) › Leasing Opportunity Trophy Quality ✓ Premier location › Concentrated Nodes ✓ Modernized and well-amenitized ✓ Can compete directly with new cons
Slide 8: Ongoing Portfolio Transition
ONGOING PORTFOLIO TRANSITION Since late 2020, Piedmont has rotated out of New Jersey, Chicago and Woburn, MA to acquire in Midtown Atlanta. Piedmont anticipates accelerated dispositions of non-core or fully-valued assets to fund targeted › Piedmont Overview investments in the Sunbelt region. › Leasi
Slide 9: Redevelopment Case Study - Galleria
REDEVELOPMENT CASE STUDY - GALLERIA 200 Rental Rates: Redevelopment and Placemaking Driving Growth1 › Piedmont Overview PLACEMAKING INVESTMENTS RENTAL › Leasing Opportunity RATES $35.00 ✓ Hospitality Environment › Concentrated Nodes $30.77 › Capital Allocation ✓ Starbucks › Financial Growth ✓ 10,000
Slide 10: 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 › Concentrated Nodes Projected completion 2023 ‐ Unique environments garner premium › Capital Al
Slide 11: 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 › Concentrated Nodes › Capital Allocation › Financial Growth › Peer
Slide 12: Decade of Consistent FFO Growth
DECADE OF CONSISTENT FFO GROWTH Track-record of Core FFO per share growth through accretive asset recycling and portfolio lease-up › Piedmont Overview › Leasing Opportunity ~3.5% CAGR 2012-2022 Portfolio › Concentrated Nodes Guidance Square Feet › Capital Allocation (millions) › Financial Growth Cor
Slide 13: Peer Leader in 2022 Key Metrics
PEER LEADER IN 2022 KEY METRICS (Through September 30, 2022) Trailing Four Quarters of Total Office Leasing as a Percentage of Office Portfolio1,2 13.6% › Piedmont Overview 12.8% 11.9% 11.2% › Leasing Opportunity › Concentrated Nodes › Capital Allocation › Financial Growth BDN PDM HIW CUZ › Peer Gro
Slide 14: Financial Flexibility
FINANCIAL FLEXIBILITY CNL Center II Liquidity Position › Piedmont Overview › Leasing Opportunity $438M $11M $0M Available on Cash on Hand Debt Maturing › Concentrated Nodes Unsecured Line Until Mid-2023 › Capital Allocation › Financial Growth Debt Profile Tenant Credit Profile › Peer Group Leader Se
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 › Concentrated Nodes submarkets that offer vibrant › Capital Allocation mixed-use environments › Financial Growth › 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 › Concentrated Nodes › Capital Allocation › Financial Growth › 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 › Concentrated Nodes › Capital Allocation › Financial Growth › 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 › Concentrated Nodes › Capital Allocation › Financial Growth › 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: Appendix
APPENDIX
Slide 21: Atlanta
ATLANTA › Market Snapshots Galleria 100 Properties 11 Total SF 4.7M Leased 85% % of PDM ALR 26% % of PDM SF 28% % CBD 35% % Urban Infill / Hub-urban 65% Glenridge Highlands Galleria 1155 Perimeter Glenridge Highlands I Glenridge Highlands II 1180 Peachtree The Medici 999 Peachtree 20 Yellow markers
Slide 22: Boston
BOSTON One Brattle Square › Market Snapshots Properties 8 Total SF 1.4M Leased 92% % of PDM ALR 10% % of PDM SF 9% % CBD 0% 5 Wall Street % Urban Infill / Hub-urban 100% 5 Wall St 25 Burlington Mall Road One Wayside 5 & 15 Wayside 1414 Mass Ave One Brattle Square 21
Slide 23: Dallas
DALLAS › Market Snapshots Properties 13 Total SF 3.5M Leased 83% % 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 24: Minneapolis
MINNEAPOLIS US Bancorp Center › Market Snapshots Properties 6 Total SF 2.1M Leased 92% % of PDM ALR 12% % of PDM SF 13% % CBD 52% % Urban Infill / Hub-urban 48% Crescent Ridge II Crescent Ridge US Bancorp Center 9320 Excelsior Boulevard I & II Meridian Crossing Norman Pointe Crescent Ridge II 23
Slide 25: New York
NEW YORK 60 Broad Street › Market Snapshots Properties 1 Total SF 1.0M Leased 86% % of PDM ALR 8% % of PDM SF 6% % CBD 100% % Urban Infill / Hub-urban 0% 60 Broad Street 24
Slide 26: Orlando
ORLANDO1 › Market Snapshots 200 South Orange Avenue Properties 6 Total SF 1.8M Leased 96% % 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 27: 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 28: Corporate Headquarters and Contacts
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