Piedmont Office (PDM) AI Stock Analysis

• Market Cap: $1.11B
• Dividend Yield: 5.61%
• Average Volume (3M): 806.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.91
• Revenue Growth: -6.74%
• EPS Growth: 17.44%
• Country: US
• Employees: 150
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): -0.14
• Shares Outstanding: 124,504,130
• 10 Day Avg. Volume: 1,066,105
• 30 Day Avg. Volume: 806,059
• PEG Ratio: -0.22
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 1.99
• P/FCF Ratio: -81.03
• Enterprise Value/Market Cap: 2.80
• Enterprise Value/Revenue: 5.50
• Enterprise Value/Gross Profit: 11.08
• Enterprise Value/Ebitda: 10.76
• 1Y Price Target: $8.50
• Price Target Upside: -2.75% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 57 Neutral
• Price Target: $8.00 ▼(-8.47% Downside)

Piedmont Office's overall stock score reflects significant financial challenges, with declining revenues and profitability issues being the most impactful factors. However, positive technical indicators and optimistic earnings call guidance provide some balance. The high dividend yield is a positive aspect, but the negative P/E ratio indicates valuation concerns.

Piedmont Office Business Overview & Revenue Model

Company Description

Piedmont Office Realty Trust, Inc. (NYSE: PDM) is an owner, manager, developer, redeveloper, and operator of high-quality, Class A office properties located primarily in select sub-markets within seven major Eastern U.S. office markets, with the majority of its revenue being generated from the Sunbelt. Its geographically-diversified, approximately $5 billion portfolio is currently comprised of approximately 17 million square feet. The Company is a fully-integrated, self-managed real estate investment trust (REIT) with local management offices in each of its markets and is investment-grade rated by S&P Global Ratings (BBB) and Moody's (Baa2). At the end of the third quarter, approximately 63% of the company's portfolio was ENERGY STAR certified and approximately 41% was LEED certified.

How the Company Makes Money

Piedmont Office generates revenue primarily through leasing and renting office spaces to businesses of varying sizes. Their revenue model includes long-term leases for traditional office spaces as well as short-term and flexible lease agreements for coworking spaces. Additionally, the company earns income from ancillary services such as meeting room rentals, office management services, and virtual office solutions. Significant partnerships with technology providers enhance their service offerings and attract a broader customer base, contributing to overall revenue growth. Seasonal promotions and strategic marketing initiatives also play a key role in driving occupancy rates and maximizing earnings.

Piedmont Office Financial Statement Overview

Summary

Piedmont Office faces significant financial challenges. The income statement shows declining revenues and profitability issues, with a negative revenue growth rate of -52.2% and a net profit margin of -12.1%. The balance sheet indicates low leverage with a debt-to-equity ratio of 0.12, but negative returns on equity. Cash flow metrics reveal a decline in free cash flow growth, posing risks to financial stability.

Income Statement

Piedmont Office's income statement shows declining revenue with a negative revenue growth rate of -52.2% in the TTM period. The company has struggled with profitability, evidenced by a negative net profit margin of -12.1% and a declining gross profit margin. The EBIT and EBITDA margins have also decreased, indicating operational challenges.

Balance Sheet

The balance sheet reflects a relatively low debt-to-equity ratio of 0.12 in the TTM period, indicating low leverage compared to previous years. However, the return on equity is negative, suggesting inefficiencies in generating returns from equity. The equity ratio remains stable, showing a solid equity base.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow growth, with a rate of -125.7% in the TTM period. The operating cash flow to net income ratio is positive, but the free cash flow to net income ratio is low, indicating challenges in converting income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	565.50M	570.32M	577.76M	563.77M	528.71M	535.02M
Gross Profit	280.43M	336.20M	342.67M	337.71M	317.78M	320.09M
EBITDA	288.74M	252.13M	231.06M	234.41M	218.14M	292.63M
Net Income	-68.41M	-79.07M	-48.39M	146.83M	-1.15M	232.69M
Balance Sheet
Total Assets	3.98B	4.11B	4.06B	4.09B	3.93B	3.74B
Cash, Cash Equivalents and Short-Term Investments	3.31M	113.88M	4.21M	16.54M	7.42M	7.33M
Total Debt	190.64M	2.26B	2.05B	1.98B	1.88B	1.62B
Total Liabilities	2.43B	2.53B	2.33B	2.24B	2.14B	1.84B
Stockholders Equity	1.55B	1.59B	1.72B	1.85B	1.79B	1.90B
Cash Flow
Free Cash Flow	7.00M	-14.00M	51.94M	93.86M	119.58M	80.70M
Operating Cash Flow	161.74M	198.11M	210.13M	215.22M	242.20M	193.28M
Investing Cash Flow	-190.13M	-186.62M	-196.02M	-1.25M	-368.93M	-197.88M
Financing Cash Flow	-107.62M	98.18M	-29.50M	-203.23M	126.38M	-1.58M

Piedmont Office Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PDM, the sentiment is Positive. The current price of 8.74 is below the 20-day moving average (MA) of 8.75, above the 50-day MA of 8.11, and above the 200-day MA of 7.69, indicating a neutral trend. The MACD of 0.23 indicates Positive momentum. The RSI at 55.42 is Neutral, neither overbought nor oversold. The STOCH value of 40.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PDM.

Piedmont Office Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DEA	66 Neutral	1.03B	57.76	1.29%	9.76%	8.18%	-15.35%
PGRE	64 Neutral	1.52B	-18.18	-1.47%	―	-1.68%	63.27%
PDM	57 Neutral	$1.11B	―	-4.27%	5.61%	-6.74%	17.44%
JBGS	53 Neutral	1.73B	-11.73	-11.48%	3.16%	-11.33%	-22.04%
BDN	50 Neutral	782.22M	-2.35	-37.10%	13.57%	-3.05%	-94.96%
HPP	50 Neutral	1.03B	-0.93	-12.34%	―	-9.68%	-69.03%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Piedmont Office Corporate Events

Piedmont Office Files New Shelf Registration Statement

Piedmont Realty Trust, Inc., on July 30, 2025, filed a new shelf registration statement with the SEC to replace its previous one, allowing the issuance of debt and equity securities. The company also amended its Equity Distribution Agreement with several financial institutions to maintain its ability to issue equity through an at-the-market program, enabling potential sales of up to $250 million in common stock. This move provides Piedmont with flexibility in funding options, depending on market conditions and other factors, without obligating the company to sell any shares immediately.

Piedmont Office Rebrands to Piedmont Realty Trust

On June 6, 2025, Piedmont Office Realty Trust, Inc. officially changed its name to Piedmont Realty Trust, Inc. as part of a rebranding initiative to better align with its strategic focus on creating premium workspaces known as Piedmont PLACEs. This rebranding reflects the company’s commitment to transforming traditional office environments into spaces that promote collaboration and community, with no changes to its stock trading symbol or CUSIP. The name change aims to enhance the company’s market positioning by emphasizing its dedication to providing elevated service and cohesive client experiences.