Piedmont Realty Trust, Inc. · NYSE:PDM
Piedmont Realty Trust — Piedmont Office Realty Trust — Investor Presentation (2022)
24 slides from Piedmont Realty Trust's investor presentation, 2022
Slide 1: Investor Update First Quarter 2022
INVESTOR UPDATE First Quarter 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 in select submarkets located primarily within seven major eastern U.S. office mark
Slide 3: Piedmont Overview
PIEDMONT OVERVIEW Piedmont Quick Facts As of 12/31/21 (Pro Forma for Recent Dispositions) Focused on distinct office › Piedmont Overview Assets1 52 nodes in seven major › Concentrated Nodes markets Square Footage1 16.1 million › Capital Recycling Percent Leased1 87% › Investment Strategy Weighted Av
Slide 4: 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 Galleria 600, Atlanta › Concentrated Nodes Atlanta 28% Cumberland / Galleria Class A Submarket Share ›
Slide 5: Accretive Capital Recycling into the Sunbelt
ACCRETIVE CAPITAL RECYCLING INTO THE SUNBELT › Piedmont Overview Portfolio Transition1 Sunbelt Percentage of Portfolio ALR Over Time1 › Concentrated Nodes › Capital Recycling › Investment Strategy 2X ALR EXPOSURE TO GREW SUNBELT ALR 70% Estimates ATLANTA & DALLAS TO OVER 60% › Financial Growth › Pee
Slide 6: Investment Strategy – Recent Acquisition
INVESTMENT STRATEGY – RECENT ACQUISITION Reimagining 999 Peachtree Street Targeting $350 - $450 million of New Tenant Balconies, Food / Beverage, Lobby, Fitness, Conference › Piedmont Overview highly strategic investments in 2022 › Concentrated Nodes Tracking 5 to 10 opportunities within › Capital R
Slide 7: 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 ~4% CAGR › Concentrated Nodes 2012-2022 Core FFO Per share Guidance › Capital Recycling $2.02 100% › Investment Strategy $2.00 $1.97 › Financial Grow
Slide 8: Peer Leader in 2021 Key Metrics
PEER LEADER IN 2021 KEY METRICS (Through December 31, 2021) 2021 Total Office Leasing as a Percentage of Office Portfolio1 13.2% › Piedmont Overview 11.4% 11.0% 8.8% › Concentrated Nodes › Capital Recycling › Investment Strategy › Financial Growth PDM CUZ HIW BDN › Peer Group Leader 2018 to 2022 Gui
Slide 9: Positioned to Capture Positive Absorption
POSITIONED TO CAPTURE POSITIVE ABSORPTION (December 31, 2021, pro forma for recent disposition activity) Majority of Near-term Lease Roll / Vacancy is in the Sunbelt Steady Leasing Recovery › Piedmont Overview › Concentrated Nodes 2022 Expirations by Market (% of Portfolio ALR) New Leasing in Portfo
Slide 10: Creating Unique Office Environments to Drive Rental Rate and Velocity
CREATING UNIQUE OFFICE ENVIRONMENTS TO DRIVE RENTAL RATE AND VELOCITY › Piedmont Overview The Case for Redevelopment › Concentrated Nodes 999 Peachtree, Atlanta › Capital Recycling Projected completion 2022 • Compelling pro-forma investment returns Pro-forma basis $395/SF › Investment Strategy ‐ Uni
Slide 11: Redevelopment Case Study – Galleria 200
REDEVELOPMENT CASE STUDY – GALLERIA 200 Rental Rates: Amenitization and Densification Driving Growth1 $35.00 Current Rental Rate $34.00 › Piedmont Overview 39% 23% 20% $32.00 › Concentrated Nodes Est. Incremental $30.66 Rental Rate Stabilized NOI 200 Galleria › Capital Recycling Growth From Growth F
Slide 12: 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 › Concentrated Nodes › Capital Recycling › Investment Strategy › Financial Growth › Peer
Slide 13: Financial Flexibility
FINANCIAL FLEXIBILITY (December 31, 2021 balances, with pro forma application of the disposition proceeds from the sales of 225 and 235 Presidential Way in Woburn, MA and Two Pierce Place in Itasca, IL) › Piedmont Overview Liquidity Position › Concentrated Nodes ~$355M $7M $0M › Capital Recycling Av
Slide 14: 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 15: Why Piedmont?
WHY PIEDMONT? › Piedmont Overview › Concentrated Nodes • Highly concentrated office nodes in › Capital Recycling submarkets that offer vibrant › Investment Strategy mixed-use environments › Financial Growth › Peer Group Leader • Compelling earnings growth › Poised for through accretive capital recyc
Slide 16: Appendix
APPENDIX
Slide 17: Atlanta
ATLANTA › Market Snapshots Properties 10 Total SF 4.0M Leased 84% % of PDM ALR 21% % of PDM SF 25% % CBD 17% Galleria 100 % Urban Infill / Hub-urban 83% Galleria 1155 Perimeter Glenridge Highlands I Glenridge Highlands II The Medici 999 Peachtree Glenridge Highlands I & II 16 Yellow markers indicate
Slide 18: Boston
BOSTON One Brattle Square › Market Snapshots Properties 8 Total SF 1.4M Leased 90% % 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 17 Metrics include pro forma adjustm
Slide 19: Dallas
DALLAS › Market Snapshots Properties 13 Total SF 3.5M Leased 85% % 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 20: Minneapolis
MINNEAPOLIS › Market Snapshots Properties 6 Total SF 2.1M Leased 91% % of PDM ALR 12% % 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 19 Metrics includ
Slide 21: New York
NEW YORK 60 Broad Street › Market Snapshots Properties 1 Total SF 1.0M Leased 90% % of PDM ALR 9% % of PDM SF 6% % CBD 100% % Urban Infill / Hub-urban 0% 60 Broad Street 20 Metrics include pro forma adjustments for capital markets activity.
Slide 22: Orlando
ORLANDO1 › Market Snapshots Properties 6 Total SF 1.8M Leased 91% % of PDM ALR 11% % of PDM SF 11% % CBD 82% % Urban Infill / Hub-urban 18% 200 South Orange Avenue 400 & 500 Town Park 501 W Church Street 200 & 222 South Orange CNL Center I & II CNL Center I & II Downtown Northern I-4 Corridor Yellow
Slide 23: Washington
WASHINGTON › Market Snapshots Properties 6 Arlington Gateway Total SF 1.6M Leased 81% % of PDM ALR 13% % of PDM SF 10% % CBD 45% % Urban Infill / Hub-urban 55% 3100 Clarendon 1201 Eye Street Arlington Gateway 1225 Eye Street 4250 N Fairfax Drive 3100 Clarendon 400 Virginia Avenue 22 Metrics include
Slide 24: 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
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