Piedmont Realty Trust, Inc. · NYSE:PDM
Piedmont Realty Trust — Piedmont Office Realty Trust — Wells Fargo Real Estate Securities Conference 2018
14 slides from Piedmont Realty Trust's conference presentation, February 2018
Slide 1: Wells Fargo Real Estate Securities Conference
Wells Fargo Real Estate Securities Conference February 2018
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 and operator of high-quality, Class A office properties in select sub-markets located primarily within eight major eastern U.S. office markets. The Com
Slide 3: Piedmont Overview
Piedmont Overview AS OF 12/31/2017 AS OF 12/31/2017 CORPORATE OVERVIEW (INCLUDING PRO FORMA ADJUSTMENTS) PORTFOLIO OVERVIEW (INCLUDING PRO FORMA ADJUSTMENTS) Ticker (NYSE) PDM Square Feet (millions) 16.5 Market Cap as of 2/23/2018 (billions) $2.5 Number of Properties 53 Three-Year Total Return (1/1/
Slide 4: Who is Piedmont?
Who is Piedmont? DIFFERENTIATED PORTFOLIO DISCIPLINED CAPITAL ALLOCATOR FINANCIAL STRENGTH AND FLEXIBILITY ARLINGTON GATEWAY Arlington, VA PROACTIVE OPERATIONAL MANAGEMENT PATHS TO GROWTH SUPERIOR VALUE PROPOSITION ONE BRATTLE SQUARE Cambridge, MA 3
Slide 5: Differentiated Portfolio
Differentiated Portfolio PORTFOLIO CONCENTRATED WITHIN EIGHT OF THE NATION’S LARGEST EASTERN MARKETS Why These Markets: • Historical and projected rental rate growth • Barriers to entry • Heavy amenity base Atlanta Washington, DC • Proximity to transportation hubs Northwest, Central Perimeter Dist
Slide 6: Differentiated Portfolio
Differentiated Portfolio PIEDMONT’S MARKETS OFFER ATTRACTIVE FUNDAMENTALS AND FAVORABLE OUTLOOK LTM Employment Growth Construction as a % of Total Inventory CoStar Office Statistics, Q4 2017 JLL Office Outlook US, Q4 2017 10 Year Historical Average Orlando 3.1% 3.0% Dallas 2.9% 2.5% Boston 2.2% 2.0%
Slide 7: Disciplined Capital Allocator
Disciplined Capital Allocator ACQUISITION ACTIVITY SINCE IPO - DOMINANT POSITIONS WITHIN TARGET SUBMARKETS Atlanta - Northwest Boston - 128 North GALLERIA 200, ATLANTA, GA 5 WALL STREET, BURLINGTON, MA Invested (# buildings, $MM) 3 4 bldgs, $192 million Invested (# buildings, $MM) 3 6 bldgs, $280 mi
Slide 8: Disciplined Capital Allocator
Disciplined Capital Allocator SINCE 2014, PIEDMONT HAS SOLD $2.2 BILLION OF PIEDMONT HAS CREATED VALUE THROUGH THE NON-CORE HOLDINGS, EXITING MULTIPLE MARKETS OPPORTUNISTIC ACQUISITION OF ~$550M OF ITS STOCK 2004-2007 2008-2013 2014-2018 Piedmont Stock Price Since IPO $917 $924 $23.50 $679 $22.50 Ne
Slide 9: Financial Strength and Flexibility
Financial Strength and Flexibility WELL-LADDERED MATURITY SCHEDULE WITH ACCESS TO DEBT AND EQUITY MARKETS Debt Maturity Schedule - Using Sale Proceeds to Reduce Debt End of 4Q 2017 Pro Forma $400 $400 $200 $200 $0 $0 2017 2018 2019 2020 2021 2022 2023 2024 2017 2018 2019 2020 2021 2022 2023 2024 Bon
Slide 10: Proactive Operational Management
Proactive Operational Management PIEDMONT MAINTAINS FIVE REGIONAL OFFICE LOCATIONS TO OPTIMIZE EFFICIENCY AND TENANT-CENTRIC FOCUS 86% 83% NORTHEAST REGION 41% MIDWEST REGION • EVP Oversight Tom Prescott • EVP Oversight Brent Smith • Markets Chicago • Markets Boston Minneapolis New York • Region SF
Slide 11: Paths to Growth
Paths to Growth ORGANIC NOI GROWTH POTENTIAL Capitalizing on Future Expirations (% of ALR 7) As of 12/31/2017, including pro forma adjustments 14.0% 12.0% Completed: Raytheon SunTrust, 0.9% 10.0% Wendy's/Arbys, 1.1% 8.0% NY City, 2.1% NY State, 6.0% 5.1% Nestle, 2.4% 4.0% 7.5% 6.5% 2.0% 4.5% 3.6% 0.
Slide 12: Paths to Growth
Paths to Growth SELECTIVE DEVELOPMENT TO EXPAND POSITIONS AS OF 12/31/2017 Strategically-Located Land Holdings for Future Development (minimum 70% pre-lease); All Land Holdings are Adjacent to Existing Core Locations 1,000,000 SF 250,000 SF 250,000 SF Lake Mary, FL Atlanta, GA Atlanta, GA Adjacent t
Slide 13: Superior Value Proposition
Superior Value Proposition ATTRACTIVE RISK-ADJUSTED RETURNS PIEDMONT INCEPTION THROUGH JANUARY 31, 2018 Sharpe Ratio 9 Annual Standard Deviation Annualized Total Return 0.58 21.1% 0.52 9.9% 17.7% 16.7% 9.4% 7.3% 0.34 BLOOMBERG PIEDMONT COMPETITIVE SET BLOOMBERG PIEDMONT COMPETITIVE SET BLOOMBERG OFF
Slide 14: Appendix - Footnotes
Appendix - Footnotes 1 Includes Annualized Lease Revenue attributable to tenants with an investment grade credit rating and tenants that do not have a credit rating but have well- established businesses, such as Independence Blue Cross, Towers Watson, Brother International, and RaceTrac Petroleum. 2
Piedmont Office Realty Trust — Wells Fargo Real Estate Securities Conference 2018 on 6ix