Piedmont Realty Trust, Inc. · NYSE:PDM
Piedmont Realty Trust — Piedmont Office Realty Trust — REITweek 2022
28 slides from Piedmont Realty Trust's conference presentation, June 2022
Slide 1: REITweek Presentation
999 Peachtree Street REITWEEK PRESENTATION June 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 As of 3/31/22 Focused on distinct office Assets1 52 › Piedmont Overview nodes in seven major Square Footage1 16.1 million › Concentrated Nodes markets Percent Leased1 87% › Capital Allocation Weighted Average Lease Term 5.9 years › Financial Growth Percent SF E
Slide 4: Piedmont Well-Positioned for Today's Environment
PIEDMONT WELL-POSITIONED FOR TODAY’S ENVIRONMENT Key Decision Drivers for Office Tenants Today › Piedmont Overview › Concentrated Nodes • Amenities that support flexible workstyles and create › Capital Allocation experiences for employees not achievable at home › Financial Growth › Poised for • Abun
Slide 5: 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 › Concentrated Nodes Atlanta – Cumberland / Galleria Submarket Boston – Burlington Submarket › Capital
Slide 6: Ongoing Portfolio Transition
ONGOING PORTFOLIO TRANSITION Since October 2020, Piedmont has rotated out of New Jersey, Chicago and Woburn, MA to acquire 999 Peachtree in Midtown Atlanta. Piedmont anticipates accelerated dispositions of non-core or fully-valued assets to fund targeted investments in the › Piedmont Overview Sunbel
Slide 7: 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 USER PRIORITIES THE MERITS OF 999 PEACHTREE STREE
Slide 8: 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 Allocation Projected completion 2023 • Compelling pro-forma investment returns Pro-forma basis $395/SF › Financial Growth ‐ Uniqu
Slide 9: 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 Allocation › Financial Growth › Poised for Absorption › Pe
Slide 10: Greater Tenant Diversification, Increased Rental Roll Up Opportunity
GREATER TENANT DIVERSIFICATION, INCREASED RENTAL ROLL UP OPPORTUNITY Average Lease Size (Square Footage) Over Time Piedmont Today › Piedmont Overview Focused on well-amenitized, high 45,000 › Concentrated Nodes quality, multi-tenant properties › Capital Allocation › Financial Growth 40,000 • Average
Slide 11: 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 › Concentrated Nodes ~4% CAGR 2012-2022 Portfolio › Capital Allocation Guidance Square Feet › Financial Growth (millions) › Poised for Core FFO $2.03
Slide 12: Positioned to Capture Positive Absorption
POSITIONED TO CAPTURE POSITIVE ABSORPTION Steady Leasing Recovery › Piedmont Overview NEW TENANT LEASING IN PORTFOLIO (SF IN 000’S) 243 › Concentrated Nodes 221 › Capital Allocation 201 › Financial Growth 2019 Quarterly › Poised for Avg. (179) 154 154 Absorption 120 › Peer Group Leader › Financial F
Slide 13: Peer Leader in 2022 Key Metrics
PEER LEADER IN 2022 KEY METRICS (Through March 31, 2022) Trailing Four Quarters of Total Office Leasing as a Percentage of Office Portfolio1,2 12.8% › Piedmont Overview 11.5% 11.3% 10.6% › Concentrated Nodes › Capital Allocation › Financial Growth › Poised for Absorption PDM CUZ HIW BDN › Peer Group
Slide 14: Financial Flexibility
FINANCIAL FLEXIBILITY CNL Center II, Orlando Liquidity Position › Piedmont Overview › Concentrated Nodes $419M $100M $7M $0M Available on Revolver Upsize - Cash on Hand Debt Maturing › Capital Allocation Unsecured Line Anticipated June 2022 Until Late 2023 › Financial Growth › Poised for Absorption
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 › Concentrated Nodes • Highly concentrated office nodes in › Capital Allocation submarkets that offer vibrant › Financial Growth mixed-use environments › Poised for Absorption • Compelling earnings growth › Peer Group Leader through accretive capital recycling › Fin
Slide 17: Redevelopment Case Study - Galleria 200
REDEVELOPMENT CASE STUDY - GALLERIA 200 Rental Rates: Redevelopment and Placemaking Driving Growth1 › Piedmont Overview PLACEMAKING INVESTMENTS RENTAL › Concentrated Nodes ✓ Hospitality Environment RATES $35.00 › Capital Allocation ✓ Starbucks › Financial Growth $30.45 ✓ 10,000 SF Health Club › Pois
Slide 18: Redevelopment Case Study – 6565 N MacArthur – Location
REDEVELOPMENT CASE STUDY – 6565 N MACARTHUR – LOCATION ✓ Abundant walkable amenities ✓ 23 dining options in two block radius › Piedmont Overview ✓ 9’ window lines › Concentrated Nodes ✓ Efficient floor plates › Capital Allocation ✓ Excellent accessibility › Financial Growth › Poised for Absorption ›
Slide 19: Redevelopment Case Study - 6565 N MacArthur - Impact
REDEVELOPMENT CASE STUDY - 6565 N MACARTHUR - IMPACT PLACEMAKING INVESTMENTS RENTAL › Piedmont Overview RATES ✓ Lobby Renewal › Concentrated Nodes ✓ Add Fitness Center › Capital Allocation $22.00 ✓ Add Conference Center › Financial Growth ✓ Add Tenant Lounge › Poised for Absorption ✓ Refresh Elevato
Slide 20: Appendix
APPENDIX
Slide 21: Atlanta
ATLANTA › Market Snapshots Galleria 100 Properties 10 Total SF 4.0M Leased 86% % of PDM ALR 22% % of PDM SF 25% % CBD 17% % Urban Infill / Hub-urban 83% Glenridge Highlands Galleria 1155 Perimeter Glenridge Highlands I Glenridge Highlands II The Medici 999 Peachtree 20 Yellow markers indicate land p
Slide 22: Boston
BOSTON One Brattle Square › Market Snapshots Properties 8 Total SF 1.4M Leased 91% % 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 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 24: Minneapolis
MINNEAPOLIS US Bancorp Center › Market Snapshots Properties 6 Total SF 2.1M Leased 90% % 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 90% % of PDM ALR 9% % 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 92% % of PDM ALR 11% % of PDM SF 11% % CBD 82% % Urban Infill / Hub-urban 18% 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 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 Virgini
Slide 28: Corporate Headquarters and Investor 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