Piedmont Realty Trust, Inc. · NYSE:PDM
Piedmont Realty Trust — Piedmont Office Realty Trust — NAREIT Investor Forum 2011
36 slides from Piedmont Realty Trust's conference presentation, Jun 7, 2011
Slide 1: Piedmont Office Realty Trust, Inc.
Exhibit 99.1 OFFICE PIEDMONT® © 2011 Piedmont REALTYOffice TRUSTRealty Trust, Inc.
Slide 2: Forward-Looking Statements
Forward-Looking Certain Securities Section results identified do The consummate existing associated and environmental Annual Readers contained This supplemental 1© 2011 not other following presentation relate tostatements Report Piedmont 27A leases are differ intangible by in Exchange with cautioned
Slide 3: Piedmont Introduction
Piedmont Introduction development the leverage Chicago, We that industry reliable, our 3/31/2011) Unless The 2010. December Commission. 2© 2011 Company use office the information the otherwise market information Piedmont but surveys strategy Washington, Office properties 31, context and we and Such
Slide 4: Investment Summary
•Investment 4250 Notes: 3©Fourth Class Long-term Demonstrated Focused Operational Strong Corporate 2011 N.(1) APiedmont Fairfax largest balance office investment Based Summary governance relationships excellence office properties capital Drive, sheet upon Office strategy REIT(1) with comparison Arli
Slide 5: Class A Office Properties in Major U.S. Markets
Class 200 1201 4© 2011 &Eye A400 Piedmont Office Street, Bridgewater Properties Washington, OfficeCrossing, Realty in Major DCTrust, Bridgewater, U.S.Inc. MarketsNJ
Slide 6: High-Quality Portfolio, Local Market Presence
•–Market Notes: 5©Approximately High-Quality Local Washington, Chicago New Minneapolis Los Boston 77 21.5 53% Median 2011 office Angeles million CBD, York (1) Market Focus Piedmont building Information properties 34% square DC Class Presence 81% Office Suburban ageA feet ofof presented Portfolio our
Slide 7: Long-term Relationships with High Credit Quality, Diverse Tenant Base
Long-term One Two Harvard © 6NASA 2011 Brattle Independence Piedmont University Relationships Square, Office Square, Cambridge, Realty with Washington, High Trust, MACredit Inc. D.C. Quality, Diverse Tenant Base
Slide 8: Strong Tenant Diversification
Strong Tenant U.S. BP US Leo Winston Sanofi-aventis Independence Nestle GE Zurich Kirkland Shaw State City Lockheed DDB Gallagher Marsh Gemini Caterpillar Harvard KeyBank TOTAL No ** (1) Notes: (2) (3) ratings (4) (5) (6) (7) 7© 2011 Various As Denotes Equal Credit BP US Kirkland Corporation tenant
Slide 9: Lease Expiration Profile and Proactive Strategy
Expiration •3/31/2011 (%) 2011 11.6 9.9 3.1 9.8 9.1 7.3 5.5 3.7 7.9 9.0 26.2 Non-Government Proactive (1) Notes: (2) 8©Weighted 2011 Equal For 1.2 0.3 0.6 7.3 0.2 1.4 3.1 30 8.5 7.2 2012 25 8.7 9.5 8.5 5.3 3.5 6.5 5.9 the Piedmont 19.0 to strategy 20 Lease 2013 &period average ALR Retention 15 2014
Slide 10: Recent Leasing Activity
Year-to-date –Major 1075 US Notes: 9©Lease New 2011 Bancorp West Recent Leasing (1) lease Piedmont extension For Entrance signed Center, leasing Leasing the Activity Office period signed with Drive, activity Minneapolis, Transactions inEvraz, Chrysler State BSH Eide First Realty from with 2011 Aubur
Slide 11: Demonstrated Capital Allocation Track Record
Demonstrated 1200 500 Meridian © 10 2011 W.Enclave Monroe Piedmont Crossings, Parkway, Capital Street, Office Richfield, Allocation Chicago, Houston, RealtyMNTrust, IL Track TX Inc. Record
Slide 12: Proven Track Record of Value Creation
Proven Dispositions 5,000 5,002 464 319 2005 Acquisitions Transaction ($MM) 1998 Asset % Cost Value Special •Capital Track (1) Notes: (2) © 11 Approximately 27 2011 ofRepresents Inclusive 791 76 assets 44.3 Total -Special – Acquisitions Dispositions 1,000 44 Creation record 2004 60 2004 Capital-Recy
Slide 13: Capital Recycling: Disposition and Acquisition
Capital Disposition 111 –Acquisition Meridian © 12 Acquired 111 $55 Closed Older, Inefficient Difficult Meridian $65.6 Newer, Credit Projected 2011 Sylvan Sylvan million Recycling Piedmont million less tenancy December high-quality Crossings, to Avenue, Crossings, October stabilized design desirable
Slide 14: Capital Recycling: Eastpointe Disposition, 1200 Enclave Acquisition
Capital Disposition Eastpointe –Acquisition 1200 © 13 Acquired Eastpointe Under Scheduled Leasing Exits 1200 $18.5 High Occupancy Net Upside Projected 2011 Enclave Rents: Enclave quality aRecycling Piedmont Million contract non-strategic potential challenge Corporate March stabilized closing Corpora
Slide 15: Capital Recycling: 500 W. Monroe Acquisition
Capital Disposition –Acquisition 35 500 © 14 Acquired Acquisition Trophy 35 Under Reduces Unleveraged 500 Occupancy Upside Projected 2011 West West W. W.Recycling Piedmont Wacker Wacker LOI potential Monroe Asset Monroe Chicago for stabilized for at basis: $298 FFO acquisition: Drive, Drive, $401 St
Slide 16: Focused Investment Strategy in Select Markets
Focused 800 60 1225 © 15 2011 Broad N.Eye Brand Piedmont Investment Street, Street, Blvd., New Washington, Office Strategy Glendale, York, Realty NY in D.C. CA Select Trust, Inc. Markets
Slide 17: Focused Concentration Strategy
•Focused Concentration Boston New Washington Los –San © 16 Continue Target Receive Maintain Exit 2011 Angeles Francisco York 10 Minneapolis Piedmont markets cities Markets markets 60% Chicago consolidation strong D.C. Dallas by Central/South Opportunistic toselected Atlanta Strategy 2015 Office 70%
Slide 18: Focused Markets Strategy 2005 to 2015
Focused 2005 30:70 50:50 •10 San Los New Boston Texas Chicago Minneapolis Washington Central/So. Atlanta 70:30 © 17 Tacoma Tulsa Salt San Memphis Knoxville Jacksonville Fort Raleigh Richmond Harrisburg Indianapolis Oklahoma Des Grand Charlotte Portland Seattle Denver Nashville Cleveland Detroit Gree
Slide 19: Investment Strategy
•–Investment © 18 Accretive Attention Value Core Extensive Capitalize Age Quality Location Competition Lease Credit In-place 2011of market /Piedmont expiration quality basis product of rents to to Strategy experience on construction key enterprise focus investment current as ofasset Office compared
Slide 20: Operational Excellence
Operational Crescent Las LEED BOMA © 19 2011 Colinas - 360 Piedmont Gold Ridge Excellence Corporate II,Office Minnetonka, Center, RealtyIrving, MN Trust, TX Inc.
Slide 21: Operational Excellence: Regional Management Teams
Operational Kevin Senior South Mid-Atlantic Daniel West Mark New Doug Chicago Cynthia Detroit Paul •Boston © 20 23 2004 21 25 2007 27 2011, 26 2006 22 2010 Experience 2011 years T. York Regional E. S. Pennington Regional Fossum Vice –J. M. Newman Piedmont City Piedmont M. Landstrom Reeder City 2011,
Slide 22: Operational Excellence: Awards and Customer Satisfaction
•Operational © 21 Approximately TOBY BOMA Recognizes Kingsley Industry-leading Piedmont 2011 Piedmont (The 360 Survey was outperformed Excellence best properties Outstanding ranked 25% Office practices survey offourth –that the Realty Consistent of Kingsley Building inexemplify customer portfolio al
Slide 23: Operational Excellence: LEED and Energy Star
•Operational © 22 Approximately Two LEED Internationally-recognized Seven Solar Installation Other Energy Label 2011buildings indicates potential Piedmont staff (Leadership StarExcellence members of solar are 66% installations that Office LEED in panels aof possess building Energy –office Realty Env
Slide 24: Strong Balance Sheet and Capacity for Growth
Strong Piedmont 1901 © 23 2011 Main Balance Piedmont Pointe Street, Sheet I Office Irvine, andwith II,Realty CA Bethesda, Capacity Trust, MD forInc. Growth
Slide 25: Low Leverage and Capitalization
Low Capitalization Equity Book Net Debt-to-Total Debt-to-Gross Fixed Interest S&P Core AFFO Dividends Total •$4,500 $4,563 $250 2011 Limited Access (1) Notes: and (2) (3) (4) in (5) © 24Capacity 2011 the As For Core Piedmont Book is Leverage /FFO EBITDA 2012 Assets $245(4) Debt Market Value debt Cha
Slide 26: Balance Sheet Capacity and Debt Maturities
–•5 Balance At 40% Current 01.6 Additional Debt Equity © 25Year 1£³Maintain 2011 Benchmark 50% 40% 25% 0.7 3.5 2 Leverage 3 Plan Market 3.5 4Piedmont of leverage of 5sheet debt 6Debt investment debt –7Balance Cap and ismatures Capacity Office unsecured geographic Sheet grade in Realty any –debt rati
Slide 27: Corporate Governance
Corporate AON Glenridge Copper © 26 2011 Center, Ridge Piedmont Governance Highlands Chicago, Center, Office II, Lyndhurst, ILAtlanta, Realty Trust, GA NJ Inc.
Slide 28: Management Team
Management Donald President, Robert Chief Carroll Raymond Executive •Laura Senior © 27 26 2003 1994 33 2004 1984 1978 21 1990 29 1997 1995 1982 20 2007 2005 2002 1999 1991 2011 years Financial P.Vice –management E. A. A. Piedmont Moon 2003 2011, 2007, 2002, 1996, 1995, 1984, 2005, 1997 1994 1991 201
Slide 29: Experienced Board and Governance Profile
•Corporate Piedmont Relevant W. Frank Michael Wesley William Robinson-Humphrey, Donald Jeffrey Experienced Note: © 28 Annual 72011 Board Opt Exemption Wayne outout (1) C. of L. E. S. Piedmont compensation members H. R. election McDowell, Independent of Includes 8Board Swope Governance Moss Cantrell
Slide 30: Investment Summary
–•Investment Notes: © 29High-quality Focused Strong Significant Experienced Potential Average Well-timed We Geographically Creditworthy 11 Long-term $6.9 29% NOI Experience 2011 regional believe billion growth debt-to-gross (1) Piedmont capital asset 26 For discount Summary capacity focus an asset o
Slide 31: Summary Statistics and 2011 Guidance
Summary #Square Weighted % Median Annualized 2011 Low Net Add: Core Office Urban Suburban CBD •Outlook (1) Notes: © 30 Three Ignores Effects Rent Contraction Increased Projected of 2011 Leased Percentages Income Properties High Funds Financial Depreciation 53% Roll-downs Infill Portfolio Property Fe
Slide 32: Appendix
31 Appendix
Slide 33: Consolidated Balance Sheets
Piedmont Office Realty Trust, Inc. Consolidated Balance Sheets Unaudited (in thousands) March 31, 2011 December 31, 2010 Assets: Real estate assets, at cost: Land $ 688,103 $ 647,653 Buildings and improvements 3,865,239 3,688,751 Buildings and improvements, accumulated depreciation (770,147) (744,75
Slide 34: Consolidated Statements of Income
Piedmont Office Realty Trust, Inc. Consolidated Statements of Income Unaudited (in thousands) Three Months Ended 3/31/2011 3/31/2010 Revenues: Rental income $109,830 $110,512 Tenant reimbursements 32,490 35,083 Property management fee revenue 830 753 Other rental income 3,404 496 Total revenues 146,
Slide 35: Funds From Operations and Adjusted Funds From Operations
Piedmont Office Realty Trust, Inc. Funds From Operations, Core Funds From Operations and Adjusted Funds From Operations Unaudited (in thousands except for per share data) Three Months Ended 3/31/2011 3/31/2010 Net income attributable to Piedmont $ 33,967 $ 31,460 Depreciation (1) (2) 27,154 26,250 A
Slide 36: Same Store Net Operating Income
Piedmont Office Realty Trust, Inc. Same Store Net Operating Income Unaudited (in thousands) Three Months Ended 3/31/2011 3/31/2010 Net income attributable to Piedmont $ 33,967 $31,460 Net income attributable to non-controlling interest 123 125 Interest Expense 17,174 19,091 Depreciation(1) 27,324 26
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