Piedmont Realty Trust, Inc. · NYSE:PDM
Piedmont Realty Trust — Piedmont Office Realty Trust — Investor Presentation (June 2021)
26 slides from Piedmont Realty Trust's investor presentation, June 2021
Slide 1: June Investor Update
JUNE INVESTOR UPDATE June 2021
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 submarkets located primarily within seven major eastern U.S. office mark
Slide 3: Piedmont Overview
PIEDMONT OVERVIEW Piedmont Quick Facts Piedmont owns and operates high- Assets1 54 › Piedmont Overview quality Class A office buildings located primarily in seven of the Square Footage1 16.4 million › COVID Impact largest Eastern U.S. office › Growth Submarkets markets Percent Leased1 86.0% › Concen
Slide 4: COVID Impact – Office Trends
COVID IMPACT – OFFICE TRENDS 6031 Connection Drive, Dallas › Piedmont Overview Highlights from Gensler’s U.S. Work from Home Survey 20201 › COVID Impact • 70% of people want to work in the office for the majority of their week › Growth Submarkets Working from home • Only 12% of U.S. workers want to
Slide 5: COVID Impact – Piedmont Well-Positioned for Post-COVID Environment
COVID IMPACT – PIEDMONT WELL-POSITIONED FOR POST-COVID ENVIRONMENT Key Decision Drivers for Office Tenants Today › Piedmont Overview › COVID Impact • Amenities that support flexible workstyles and also create experiences for employees not achievable at home › Growth Submarkets › Concentration Concep
Slide 6: Identified Growth Submarkets
IDENTIFIED GROWTH SUBMARKETS Percent of Annualized Lease Revenue Non-Core Atlanta 4% Atlanta Washington, DC Galleria, Central Perimeter 13% 18% • 18% Annualized Lease Revenue › Piedmont Overview • 9 assets • 3.4M SF › COVID Impact › Growth Submarkets Boston Burlington, Cambridge/ CBD › Concentration
Slide 7: Concentration Concept – Select Submarkets
CONCENTRATION CONCEPT – SELECT SUBMARKETS We have assembled highly-concentrated and dominant nodes within select submarkets of the nation’s healthiest MSAs. › Piedmont Overview Galleria 600, Atlanta Atlanta 15% › COVID Impact Cumberland / Galleria Class A Submarket Share › Growth Submarkets 2.1M SF
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 ~180 bps higher returns1 than the disposed assets. › Piedmont Overview Decreased Exposure / Exit › COVID Impact Market Decision Infl
Slide 9: Poised for Financial Growth
POISED FOR FINANCIAL GROWTH Compelling Upside Minimal Downside › Piedmont Overview Embedded Cash Flow Growth Lease Expiration Schedule (Cumulative) › COVID Impact › Growth Submarkets $ millions % of ALR › Concentration $40 12% Concept $34 10% NY City, › Capital Recycling $30 3.0% 8% › Financial Grow
Slide 10: Reinvestment at an Attractive Basis
REINVESTMENT AT AN ATTRACTIVE BASIS › Piedmont Overview US Bancorp, Minneapolis › COVID Impact The Case for Redevelopment Completed 2019 › Growth Submarkets Begin Net Book Basis $169/SF Est. investment $9/SF › Concentration • Compelling pro-forma returns Concept Pro-forma basis $178/SF ‐ Unique envi
Slide 11: Land Bank for up to an Additional Three Million Square Feet
LAND BANK FOR UP TO AN ADDITIONAL THREE MILLION SQUARE FEET Piedmont owns a number of land parcels adjacent to existing core holdings to support significantly pre-leased development opportunity. › Piedmont Overview › COVID Impact › Growth Submarkets › Concentration Concept › Capital Recycling › Fina
Slide 12: Strong Tenant Base
STRONG TENANT BASE Piedmont’s rental revenues are generated from a secure and diversified roster of companies. › Piedmont Overview Tenant Credit Profile › COVID Impact › Growth Submarkets › Concentration Concept Investment › Capital Recycling Grade Rating Other Rating or and Nationally › Financial G
Slide 13: Strong and Simple Balance Sheet
STRONG AND SIMPLE BALANCE SHEET Liquidity Position › Piedmont Overview › COVID Impact $456M $11M $0 Available on Cash on Hand Debt Maturing › Growth Submarkets Unsecured Line Until Late 2021 › Concentration Concept Maturity Schedule › Capital Recycling $394 $400 › Financial Growth $327 $300 $250 › R
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 › Piedmont Overview dedicated to environmentally su
Slide 15: Piedmont's Compelling Growth and Value Proposition
PIEDMONT’S COMPELLING GROWTH AND VALUE PROPOSITION Estimated Same Store Cumulative NOI Growth for 2021 and 2022 › Piedmont Overview 20.6% › COVID Impact › Growth Submarkets 10.0% › Concentration 9.1% 7.7% Concept 6.8% 5.9% 5.0% 3.6% 2.9% › Capital Recycling 1.5% 1.4% 1.2% 0.9% 0.2% -0.5% › Financial
Slide 16: May Year-to-Date Update - 2021 REITweek
MAY YEAR-TO-DATE UPDATE - 2021 REITWEEK DISCUSSION TOPICS [Ideal print in 11x17] WELL-POSITIONED POST-COVID TENANTS AND LEASING VOLUMES CAPITAL STRENGTH AND LIQUIDITY As of 1Q 2021 • Portfolio is well-positioned to capture meaningful migration to secondary cities and suburban locations Total YTD Apr
Slide 17: Why Piedmont?
WHY PIEDMONT? • Piedmont’s portfolio is highly concentrated in US Bancorp Center, Minneapolis distinct submarkets; balance of easily accessible › Piedmont Overview CBD and Urban Infill/Hub-urban locations across › COVID Impact our core markets. › Growth Submarkets • Piedmont has aggressively reposit
Slide 18: Appendix
APPENDIX
Slide 19: Atlanta
ATLANTA › Market Snapshots Properties 9 Total SF 3.4M Leased 85% % of PDM ALR 18% % of PDM SF 21% % CBD 0% Galleria 100 % Urban Infill / Hub-urban 100% Glenridge Highlands I & II 1155 Perimeter Glenridge Highlands I Glenridge Highlands II Galleria The Medici 18 Yellow markers indicate land positions
Slide 20: Boston
BOSTON › Market Snapshots 5 Wall Street Properties 10 Total SF 1.9M Leased 91% % of PDM ALR 12% % of PDM SF 11% % CBD 0% % Urban Infill / Hub-urban 100% 225 &235 Presidential Way 5 Wall St 25 Burlington Mall Road One Wayside 5 & 15 Wayside 1414 Mass Ave One Brattle Square One Brattle Square 19
Slide 21: Dallas
DALLAS › Market Snapshots Properties 13 Total SF 3.5M Leased 84% % of PDM ALR 20% % of PDM SF 22% % 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 22: Minneapolis
MINNEAPOLIS › Market Snapshots Properties 6 Total SF 2.1M Leased 93% % of PDM ALR 13% % of PDM SF 13% % CBD 52% % Urban Infill / Hub-urban 48% US Bancorp Center Crescent Ridge US Bancorp Center 9320 Excelsior Boulevard 9320 Excelsior Boulevard I & II Meridian Crossing Norman Pointe 21
Slide 23: New York
NEW YORK 60 Broad Street › Market Snapshots Properties 1 Total SF 1.0M Leased 92% % of PDM ALR 10% % of PDM SF 6% % CBD 100% % Urban Infill / Hub-urban 0% 60 Broad Street 22
Slide 24: Orlando
ORLANDO1 › Market Snapshots Properties 6 Total SF 1.8M Leased 92% % of PDM ALR 10% % of PDM SF 11% % CBD 83% % Urban Infill / Hub-urban 17% CNL Center I & II 400 & 500 Town Park 501 W Church Street 200 & 222 South Orange CNL Center I & II 200 South Orange Avenue 23 1 Excludes one 127,000 square foot
Slide 25: Washington
WASHINGTON › Market Snapshots Arlington Gateway Properties 6 Total SF 1.6M Leased 82% % of PDM ALR 13% % 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 24
Slide 26: www.piedmontreit.com
www.piedmontreit.com 770-418-8800
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