Piedmont Office Realty Trust (PDM) Q1 2026 earnings summary

Executive summary

• Leasing activity remained robust in Q1 2026, with over 430,000 sq ft executed—two-thirds from new tenants—and a strong pipeline of over 700,000 sq ft for Q2; portfolio is nearly 90% leased and recognized for operational excellence, including CoStar Impact Award and Kingsley Elite Five status.

• Portfolio consists of 29 in-service projects and three redevelopment projects totaling 14.9 million sq ft, with 89.3% leased as of March 31, 2026.

• Renovated 90% of the portfolio since 2020, focusing on amenity-rich, hospitality-driven assets that command record rental rates.

• Report covers the quarter ended March 31, 2026, with 125,019,003 shares outstanding as of April 29, 2026.

• Major markets include Atlanta, Dallas, and Orlando, with Atlanta leading Q1 leasing activity.

Financial highlights

• Core FFO per diluted share for Q1 2026 was $0.36, unchanged year-over-year; AFFO was $23.8 million, and NAREIT FFO was $46.0 million.

• Q1 2026 net loss was $12.9 million ($0.10/share), compared to $10.1 million ($0.08/share) in Q1 2025, mainly due to higher depreciation and interest expense.

• Total revenues for Q1 2026 were $143.3 million, up $0.6 million year-over-year.

• Same Store NOI increased 11.1% on a cash basis and 1.9% on an accrual basis year-over-year, driven by burn-off of free rent and new lease commencements.

• Net effective rents increased to $22.03 per sq ft, up nearly 5% sequentially; leasing capital spend was $5.18 per sq ft per year.

Outlook and guidance

• 2026 annual Core FFO guidance raised to $1.49–$1.54 per diluted share, and Same Store NOI (cash and GAAP) guidance increased to 4%–7%.

• 2026 net loss guidance narrowed to $(45)–$(42) million, improved from prior $(48)–$(44) million.

• Projected 1.7–2.0 million sq ft of leasing for 2026, with in-service leased percentage expected to reach 89.5%–90.5%.

• Guidance excludes speculative acquisitions, dispositions, or refinancing activity.

• Management believes liquidity is sufficient for the foreseeable future, with $526 million available under the line of credit and no required debt maturities until 2028.