Piedmont Realty Trust, Inc. · NYSE:PDM
Piedmont Realty Trust — Piedmont Office Realty Trust — BofA Securities Global Real Estate Conference 2023
20 slides from Piedmont Realty Trust's conference presentation, September 2023
Slide 1: Investor Presentation
BofA Securities, Inc. Global Real Estate Conference 2023 INVESTOR PRESENTATION September 2023 0
Slide 2: Disclaimer
DISCLAIMER 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 major U.S. Sunbelt markets. Its approximately $5 billion portfo
Slide 3: Piedmont Overview
PIEDMONT OVERVIEW 1180 Peachtree SUNBELT-FOCUSED portfolio of differentiated professional environments STRATEGIC capital allocator NIMBLE, well-capitalized owner SUSTAINABLE COMMUNITY minded leader 22
Slide 4: Piedmont Overview
PIEDMONT OVERVIEW 999 Peachtree Properties 51 Current Dividend Yield (as of 9/1/23) 7.1% Square Footage 16.7 million Debt to Gross Assets 38.4% Percent Leased 86.2% Net Debt to Gross Assets 38.2% Weighted Average Lease Term 5.7 years Net Debt to EBITDA (TTM) 6.3x Moody’s / S&P Ratings Baa2 / BBB Per
Slide 5: Portfolio Built For Hospitality-Infused Spaces
PORTFOLIO BUILT FOR… HOSPITALITY-INFUSED SPACES US Bancorp Center Galleria on the Park Three Galleria 44
Slide 6: Portfolio Built For Amenity-Rich Environments
PORTFOLIO BUILT FOR… AMENITY-RICH ENVIRONMENTS Starbucks at Galleria on the Park DC City Center Toyota Music Factory C+S Seafood at Galleria on the Park Truist Park The Battery ATL Colony Square Food Hall 55
Slide 7: Portfolio Built For Room to Breathe
PORTFOLIO BUILT FOR… ROOM TO BREATHE 1180 Peachtree 999 Peachtree CNL Center Two Galleria 200 | 222 S. Orange Avenue 66
Slide 8: Portfolio Built For Health and Wellness
PORTFOLIO BUILT FOR… HEALTH AND WELLNESS IronWorx Studio Glenridge Highlands US Bancorp Center Galleria on the Park 100% of Portfolio WELL Health-Safety Rating 77
Slide 9: Portfolio Built For Community-Centered Experience
PORTFOLIO BUILT FOR… COMMUNITY-CENTERED XPERIENCE EXPERIENCE Braves Tailgate Masters Watch Party Make-A-Wish Fall Festival Tenant Pop-Up Tenant App 88
Slide 10: Leasing Success
LEASING SUCCESS Since the onset of COVID, Piedmont has leased over 6.6 million square feet equating to ~40% of its portfolio. New Renewal SF in Abatement or Yet to Commence $37M backlog of cash revenue4 1,550 1,520 Leasing Volume (000 SF) 1,390 1,300 1,140 1,010 940 850 750 720 730 760 620 505 260 2
Slide 11: Targeted High-Service Offering Catering to Small and Medium Sized Enterprises
TARGETED HIGH-SERVICE OFFERING CATERING TO SMALL AND MEDIUM SIZED ENTERPRISES Portfolio Average Lease Size (SF) 45,000 40,280 40,000 35,000 30,000 25,000 20,000 14,710 15,000 10,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Differentiated Offering Hospitality-focused Majo
Slide 12: Effective Capital Rotation to the Sunbelt
EFFECTIVE CAPITAL ROTATION TO THE SUNBELT 2019 2020 2021 2022 Expand Atlanta Expand Dallas Enter Midtown Expand Midtown Atlanta Atlanta $465 AQUIRED: $412 $1.4 billion $304 $224 Weighted Average Leased of 85% SOLD: $1.4 billion ($313) Weighted Average Leased of 95% ($490) ($595) West Loop (CHI) Exit
Slide 13: Investments Focus on Unique Mixed-Use Environments
INVESTMENTS FOCUS ON UNIQUE MIXED-USE ENVIRONMENTS 1180 Peachtree 999 Peachtree Since 4Q 2021, acquired 1.3 MILLION square feet in the heart of MIDTOWN ATLANTA, making Piedmont the submarket’s LARGEST OWNER along Peachtree Street. ~$465M | $673/SF ~$224M | $360/SF - Iconic asset - Trophy asset - Eig
Slide 14: Portfolio Overview
PORTFOLIO OVERVIEW 1180 Peachtree 999 Peachtree ALR by Market ALR by Industry Washington, DC Business 5% Services New York 15% 8% Atlanta 28% Engineering, Minneapolis Other 1 Accounting, 12% 41% Research, Management & Related Services Boston 14% 7% Less than 2% of ALR derived from Houston Legal Serv
Slide 15: Concentrated Nodes in Mixed Use Environments Yield Differentiated Rents
CONCENTRATED NODES IN MIXED USE ENVIRONMENTS YIELD DIFFERENTIATED RENTS ATLANTA – Cumberland / Galleria Submarket ORLANDO – CBD Submarket $37.50 $34.50 2.1M SF 1.6M SF PDM owned PDM owned1 28% 20% $31.13 Market share Market share $31.00 ~$525M ~$450M Invested Invested Submarket rents PDM rents Subma
Slide 16: Redevelopment in Action – Galleria on the Park
REDEVELOPMENT IN ACTION – GALLERIA ON THE PARK TRANSFORMATIONS COMPLETED AT Galleria 600 GALLERIA ON THE PARK Galleria 300 | IronWorx Studio Galleria 600 Galleria 200 15 15
Slide 17: Redevelopment in Action – Galleria on the Park
REDEVELOPMENT IN ACTION – GALLERIA ON THE PARK REIMAGINED 2.1M SF ENVIRONMENT IS DELIVERING RESULTS Galleria New / Expansion Leasing Since 2021 (000 SF) ~600K 8.0 Years 16% 8 ~300K 244 New/expansion Weighted Average cash Full floor or Additional SF leases signed average roll up 1,2 greater new avail
Slide 18: Financial Strength and Flexibility
FINANCIAL STRENGTH AND FLEXIBILITY PIEDMONT MAINTAINS A CONSERVATIVE, SIMPLE BALANCE SHEET DEBT METRICS AT 6/30/2023 38.2% 6.3x Baa2 BBB 5.5% $0 No Net Debt to Weighted Average Net Debt to Moody’s S&P Development Joint Core EBITDA Interest Rate Gross Assets (as of Q3 2023) (as of Q3 2023) to Fund Ve
Slide 19: Committed to a Sustainable Community
COMMITTED TO A SUSTAINABLE COMMUNITY PORTFOLIO ACCOMPLISHMENTS ENVIRONMENTAL GOALS AS OF JUNE 30, 2023 Energy Star 20% Reduction Energy Use Intensity Partner of the Year Award by 2026 2021, 2022 and 2023 Green Lease Leader Silver Designation 20% Reduction Water Use Intensity by 2028 2022 BOMA 360 20
Slide 20: www.piedmontreit.com
www.piedmontreit.com Corporate Headquarters Institutional AnalystContact Investor Relations 5565 Glenridge Connector, suite 450 T: 770.418.8592 T: 866.354.3485 Atlanta, GA 30342 E: research.analysts@piedmontreit.com E: investor.services@piedmontreit.com T: 770.418.8800 19
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