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Piedmont Office
(NYSE:PDM)
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Rating:60Neutral
Price Target:
$10.00
▲(2.15% Upside)
Action:Reiterated
Date:07/29/26
Overall score reflects improving forward outlook and operations (raised FFO guidance, strong leasing and rent growth, and a meaningful lease revenue backlog) supported by better recent cash flow. Offsetting these positives are weak recent revenue trends and continuing net losses, plus limited valuation support (negative P/E and suspended dividend). Technicals are moderately supportive as the price is above key moving averages.
Positive Factors
Strong cash generation
Consistent, materially positive operating cash flow and a strongly positive trailing free cash flow provide durable capacity to fund leasing capital, TI buildouts, and debt reduction. This cash profile supports the company’s ability to execute leasing-led revenue recovery and de-lever without relying solely on external equity.
Negative Factors
Sharp revenue decline
A substantial, multi-period revenue contraction and persistent net losses weaken retained earnings and constrain the firm’s ability to self-fund growth or dividends. Until top-line stabilizes across the portfolio, profitability recovery and reliable distributable cash remain uncertain, pressuring long-term returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent, materially positive operating cash flow and a strongly positive trailing free cash flow provide durable capacity to fund leasing capital, TI buildouts, and debt reduction. This cash profile supports the company’s ability to execute leasing-led revenue recovery and de-lever without relying solely on external equity.
Read all positive factors
Piedmont Office (PDM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.25B
Dividend YieldN/A
Average Volume (3M)801.90K
Price to Earnings (P/E)―
Beta (1Y)0.85
Revenue Growth0.70%
EPS Growth-17.55%
CountryUS
Employees140
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)-0.65
Shares Outstanding125,132,830
10 Day Avg. Volume717,928
30 Day Avg. Volume801,900
Financial Highlights & Ratios
PEG Ratio-2.66
Price to Book (P/B)0.69
Price to Sales (P/S)1.84
P/FCF Ratio-62.23
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$11.00Price Target Upside12.36% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.13
Revenue Forecast (FY)$541.04M
Piedmont Office Business Overview & Revenue Model
Company Description
Piedmont Office Realty Trust, Inc. (PDM), traded on the NYSE, is a real estate investment trust that acquires, manages, develops, and operates premium, Class A office properties. These assets are strategically situated in key sub-markets across se...
How the Company Makes Money
Piedmont Office primarily makes money by renting office space in its owned properties to tenants under lease agreements. Its main revenue stream is rental and related income (e.g., base rent and, where applicable under lease terms, tenant reimburs...
Piedmont Office Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 02, 2026
Earnings Call Sentiment Positive
The call presented a strong operational quarter with accelerating leasing momentum, meaningful rent growth, record net effective rents, improved same-store NOI, and proactive balance sheet actions. Management raised full-year guidance and outlined clear leverage targets while highlighting a sizable $39M of lease revenue yet to commence that will bolster earnings. Notable risks included sector-wide skepticism, a delayed large NYC lease, continued lumpy capex impacting short-term free cash flow, and a still-cautious transaction market. Overall, the positive operating and financial developments materially outweigh the challenges discussed.Positive Updates
Beat Consensus and Raised Full-Year Guidance
Core FFO per diluted share of $0.38 for Q2 2026, $0.01 ahead of consensus and $0.02 higher year-over-year; company raised 2026 core FFO guidance to $1.50–$1.55 (midpoint +$0.025) implying >8% earnings growth.
Negative Updates
Timing/Execution Uncertainty on NYC Lease
Large City of New York lease at 60 Broad remains in process and likely will not conclude until Q4 2026; tenant is currently in holdover (with contractual remedies) and portions of the signed volume may not generate GAAP rent until 2027.
Read all updates
Q2-2026 Updates
Positive
Negative
Beat Consensus and Raised Full-Year Guidance
Core FFO per diluted share of $0.38 for Q2 2026, $0.01 ahead of consensus and $0.02 higher year-over-year; company raised 2026 core FFO guidance to $1.50–$1.55 (midpoint +$0.025) implying >8% earnings growth.
Read all positive updates
Company Guidance
Management raised 2026 guidance, increasing annual core FFO to $1.50–$1.55 per diluted share (midpoint +$0.025 vs. prior, implying >8% y/y growth) and boosting same‑store NOI (cash & GAAP) to +5%–8% (up 200 bps); Q2 core FFO was $0.38 (+$0.01 vs. consensus; +$0.02 y/y) and AFFO was ≈$31M. Key drivers cited include a portfolio approaching ~90% leased with economic occupancy >80% in‑service, Q2 leasing of 460k SF with +14% cash / +32% accrual rent increases, a weighted average starting cash rent of $43.79/sf (+5% q/q), quarterly net effective rent after capex of $25.56/sf (up >20% vs. prior 12‑month avg), and an executed pipeline of ~900k SF (~$39M of annualized cash rents, ≈570 bps of occupancy) that should compress the leased/commenced spread to ~400 bps by year‑end and help total lease volume reach the high end of guidance (~2.0M SF). Balance sheet highlights: term loan refinanced to $400M (matures May 2031; spread tightened 15 bps), no maturities until 2028, $600M revolver capacity and ~$17M cash at 6/30, WACD ~5.5%, and management expects net debt/EBITDA to trend below 7x by year‑end (intermediate target ~6.5x in 2027–28 and longer‑term ~6x); guidance excludes speculative acquisitions, dispositions, or refinancings.Piedmont Office Financial Statement Overview
Summary
Income Statement
36
Negative
Balance Sheet
58
Neutral
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 569.43M | 564.99M | 570.32M | 577.76M | 563.77M | 528.71M |
| Gross Profit | 163.14M | -117.06M | 336.20M | 342.67M | 337.71M | 317.78M |
| EBITDA | 322.32M | 271.49M | 221.81M | 289.10M | 437.04M | 256.73M |
| Net Income | -80.71M | -83.60M | -79.07M | -48.39M | 146.83M | -1.15M |
Balance Sheet | ||||||
| Total Assets | 4.05B | 4.03B | 4.11B | 4.06B | 4.09B | 3.93B |
| Cash, Cash Equivalents and Short-Term Investments | 16.79M | 731.00K | 109.64M | 825.00K | 16.54M | 7.42M |
| Total Debt | 2.27B | 2.27B | 2.51B | 2.10B | 2.04B | 1.88B |
| Total Liabilities | 2.57B | 2.53B | 2.53B | 2.33B | 2.24B | 2.14B |
| Stockholders Equity | 1.47B | 1.50B | 1.59B | 1.72B | 1.85B | 1.79B |
Cash Flow | ||||||
| Free Cash Flow | 31.69M | -16.68M | -14.00M | 51.94M | 93.86M | 119.58M |
| Operating Cash Flow | 179.20M | 140.56M | 198.11M | 210.13M | 215.22M | 242.20M |
| Investing Cash Flow | -198.26M | -175.35M | -186.62M | -196.02M | -1.25M | -368.93M |
| Financing Cash Flow | 32.99M | -75.31M | 98.18M | -29.50M | -203.23M | 126.38M |
Piedmont Office Technical Analysis
Positive
9.79
Price Trends
9.12
Positive
8.27
Positive
8.27
Positive
Market Momentum
0.20
Positive
61.62
Neutral
51.78
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 9.79 is above the 20-day moving average (MA) of 9.64, above the 50-day MA of 9.12, and above the 200-day MA of 8.27, indicating a bullish trend. The MACD of 0.20 indicates Positive momentum. The RSI at 61.62 is Neutral, neither overbought nor oversold. The STOCH value of 51.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PDM.
Piedmont Office Risk Analysis
Piedmont Office disclosed 56 risk factors in its most recent earnings report. Piedmont Office reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Piedmont Office Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
60 Neutral | $1.25B | -14.94 | -5.39% | ― | 0.70% | -17.55% | |
60 Neutral | $782.97M | -1.36 | -17.20% | ― | -0.88% | 47.15% | |
57 Neutral | $1.15B | 102.61 | 0.85% | 7.14% | 13.93% | -43.58% | |
55 Neutral | $534.03M | -3.71 | -18.69% | 10.09% | 0.51% | 56.07% | |
50 Neutral | $1.05B | -7.51 | -9.32% | 4.82% | -3.31% | 0.50% |
* Real Estate Sector Average
PDM
Piedmont Office
9.69
2.37
32.38%
HPP
Hudson Pacific Properties
13.77
-3.10
-18.38%
BDN
Brandywine Realty
3.04
-0.40
-11.50%
DEA
Easterly Government Properties
24.36
4.23
21.02%
JBGS
JBG Smith Properties
14.05
-6.03
-30.03%
Piedmont Office Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Piedmont Office Amends and Expands Term Loan Agreement
Neutral
May 28, 2026
On May 28, 2026, Piedmont Realty Trust, Inc. and its operating partnership amended their existing term loan agreement, increasing the loan’s principal from $325 million to $400 million and extending the maturity date to May 28, 2031. The com...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Piedmont Office Shareholders Approve Expanded Omnibus Incentive Plan
Positive
May 12, 2026
On May 12, 2026, Piedmont Realty Trust stockholders approved the Third Amended and Restated Omnibus Incentive Plan, which had been authorized by the board on March 9, 2026. The updated plan increased the number of common shares available for issua...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.