Piedmont Realty Trust, Inc. · NYSE:PDM
Piedmont Realty Trust — Piedmont Office Realty Trust — REITWorld 2021
24 slides from Piedmont Realty Trust's conference presentation, November 2021
Slide 1: REITWorld Presentation
REITWORLD PRESENTATION November 2021 999 Peachtree Street, Atlanta
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 9/30 + 999 Peachtree Acquisition Focused on distinct office Assets1 55 › Piedmont Overview nodes in seven major Square Footage1 17.1 million › Concentrated Nodes markets Core Markets Percent Leased1,2 86.9% › Capital Recycling Weighted Average Lease Term
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 29% 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 Estimates ATLANTA & DALLAS TO OVER 60% 70% › Financial Growth › Pee
Slide 6: Investment Strategy – Recent Acquisition
INVESTMENT STRATEGY – RECENT ACQUISITION Reimagining 999 Peachtree Street Targeting $400 - $500 million of New Tenant Balconies, Food / Beverage, Lobby, Fitness, Conference › Piedmont Overview highly strategic investments in 2022 › Concentrated Nodes › Capital Recycling Active dialogue on 5 to 10 op
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 4.1% CAGR › Concentrated Nodes 2018-2022 FFO › Capital Recycling Per share Consensus1 (Current midpoint of $2.03 › Investment Strategy 100% guidance)
Slide 8: Peer Leader in 2021 Operational Metrics
PEER LEADER IN 2021 OPERATIONAL METRICS (Through September 30, 2021) Year-to-Date Total Office Leasing as a Percentage of Office Portfolio1 › Piedmont Overview 11.3% › Concentrated Nodes 7.5% 7.3% 6.2% › Capital Recycling › Investment Strategy › Financial Growth PDM HIW CUZ BDN › Peer Group Leader ›
Slide 9: Positioned to Capture Positive Absorption
POSITIONED TO CAPTURE POSITIVE ABSORPTION (September 30, 2021, as reported) 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 Portfolio (SF in 000’s) › Capital R
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 $34.00 › Piedmont Overview 39% 23% 20% Current Rental Rate $31.16 › Concentrated Nodes Rental Rate Stabilized NOI Est. Incremental 200 Galleria › Capital Recycling Growth From Growth From IRR From A
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 (September 30, 2021, as reported) Liquidity Position › Piedmont Overview › Concentrated Nodes $422M $8M $0M Available on Cash on Hand Debt Maturing › Capital Recycling Unsecured Line Until 2023 › Investment Strategy Debt Profile Tenant Credit Profile › Financial Growth › Peer G
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 US Bancorp Center, Minneapolis • Highly concentrated office nodes in › Concentrated Nodes submarkets that offer vibrant mixed- use environments › Capital Recycling › Investment Strategy › Financial Growth • Compelling earnings growth through › Peer Group Leader accr
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 24% % CBD 16% Galleria 100 % Urban Infill / Hub-urban 84% 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 › Market Snapshots 5 Wall Street Properties 10 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 5 Wall St 25 Burlington Mall Road One Wayside 5 & 15 Wayside 1414 Mass Ave One Brattle Square One Brattle Square 17 Metri
Slide 19: Dallas
DALLAS › Market Snapshots Properties 13 Total SF 3.5M Leased 84% % 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 20: Minneapolis
MINNEAPOLIS › Market Snapshots Properties 6 Total SF 2.1M Leased 92% % of PDM ALR 12% % of PDM SF 12% % 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 10% % of PDM SF 10% % 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 Arlington Gateway Properties 6 Total SF 1.6M Leased 82% % of PDM ALR 13% % 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 Virginia Avenue 22 Metrics include
Slide 24: www.piedmontreit.com
www.piedmontreit.com 770-418-8800