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Piedmont Office (PDM)
NYSE:PDM
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Piedmont Office
(NYSE:PDM)
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Rating:55Neutral
Price Target:
$8.00
▼(-6.21% Downside)
Piedmont Office's overall stock score is driven by strong leasing performance and positive sentiment from the earnings call, which partially offsets the financial challenges and bearish technical indicators. The high dividend yield provides additional support, but profitability and leverage issues remain significant risks.
Piedmont Office (PDM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.04B
Dividend Yield5.88%
Average Volume (3M)801.90K
Price to Earnings (P/E)―
Beta (1Y)0.73
Revenue Growth-1.23%
EPS Growth9.10%
CountryUS
Employees150
SectorN/A
Sector StrengthN/A
IndustryREIT - Office
Share Statistics
EPS (TTM)-0.11
Shares Outstanding124,519,280
10 Day Avg. Volume717,928
30 Day Avg. Volume801,900
Financial Highlights & Ratios
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 Cap3.20
Enterprise Value/Revenue5.90
Enterprise Value/Gross Profit11.83
Enterprise Value/Ebitda11.51
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Piedmont Office Business Overview & Revenue Model
Company DescriptionPiedmont Office (PDM) is a leading provider of office products and services, specializing in delivering high-quality office supplies, furniture, and technology solutions to businesses of all sizes. The company operates primarily in the B2B sector, catering to corporate clients, educational institutions, and government agencies. PDM is committed to providing innovative solutions that enhance workplace productivity and efficiency, with a diverse product portfolio that includes everything from basic stationery to advanced office equipment.
How the Company Makes MoneyPiedmont Office generates revenue through multiple key streams, including direct sales of office supplies, furniture, and technology products. The company also offers subscription-based services for office supply replenishment, which provides a steady income stream. Additionally, PDM engages in partnerships with manufacturers and distributors to secure bulk purchasing discounts, allowing them to maximize margins on products sold. Significant contracts with large corporate clients and government entities contribute to substantial revenue, as these clients often require ongoing supply and service agreements. Furthermore, PDM benefits from value-added services such as workspace design and consulting, which not only enhance client relationships but also create additional revenue opportunities.
Piedmont Office Earnings Call Summary
Earnings Call Date:Oct 27, 2025
(Q3-2025)
| Next Earnings Date:Feb 11, 2026
Earnings Call Sentiment Positive
The earnings call reflected a strong positive sentiment with significant leasing activity, increased rental rates, and strategic achievements in sustainability. However, challenges in certain markets and delays in key lease renewals presented some concerns.Q3-2025 Updates
Positive Updates
Record Leasing Activity
Piedmont executed approximately 724,000 square feet of total leasing during the quarter, marking the largest amount of new tenant leasing in over a decade, with a total year-to-date leasing reaching approximately 1.8 million square feet.
Increased Rental Rates
Rental rates for space vacant less than a year reflected almost 9% and just over 20% roll-ups on a cash and accrual basis, respectively, with an estimated 20% increase in rental rates across projects.
Positive Office Demand Turnaround
U.S. office demand saw an increase for the first time in years, with about 12 million more square feet of office space occupied than returned to landlords in Q3 2025.
Strong Financial Performance
The company exceeded consensus FFO by 3% and anticipates sustainable earnings growth due to a $40 million backlog of uncommenced leases.
High GRESB Rating
Piedmont achieved a 5-star rating and Green Star recognition from GRESB, placing them in the top decile of all participating listed U.S. companies.
Negative Updates
Challenges in Washington, D.C. and Boston
These were the only markets where Piedmont did not experience positive absorption, indicating ongoing challenges.
Lease Renewal Delays in New York City
Execution of potential lease renewals in New York City is delayed into early 2026, causing concerns about tenant retention.
Higher Leasing Capital Expenditure
Leasing capital spend increased to $6.76 per square foot, driven by new tenant activity which generally requires higher concessions.
Company Guidance
During Piedmont's third quarter 2025 earnings call, the company highlighted a strong leasing performance, with 724,000 square feet of total leasing completed during the quarter, including over 500,000 square feet of new tenant leases, marking the largest amount in over a decade. The company's in-service lease percentage increased by 50 basis points to 89.2%, with a year-end goal of 89% to 90%. Piedmont reported a significant backlog of uncommenced leases, nearly $40 million on an annualized basis, expected to commence by 2026. The company achieved a record leasing volume, with net effective rents increasing to $21.26 per square foot. Core FFO exceeded consensus expectations by 3%, and Piedmont narrowed its 2025 annual core FFO guidance to a range of $1.40 to $1.42 per diluted share. The company emphasized the strong demand for its high-quality, amenitized office spaces, allowing for rental rate increases of up to 20% over the year, and highlighted a robust leasing pipeline with approximately 400,000 square feet in the legal stage.Piedmont Office Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
55
Neutral
Cash Flow
50
Neutral
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Piedmont Office Technical Analysis
Positive
8.53
Price Trends
8.31
Positive
8.32
Positive
7.70
Positive
Market Momentum
0.06
Negative
53.10
Neutral
74.09
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 8.53 is above the 20-day moving average (MA) of 8.43, above the 50-day MA of 8.31, and above the 200-day MA of 7.70, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 53.10 is Neutral, neither overbought nor oversold. The STOCH value of 74.09 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
UnderperformOutperform
Sector (―)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | ― | ― | ― | ― | ― | ― | |
58 Neutral | $1.57B | -14.82 | -3.14% | ― | -5.29% | 54.66% | |
58 Neutral | $989.49M | 70.73 | 1.00% | 9.13% | 11.02% | -30.91% | |
55 Neutral | $1.04B | -14.77 | -4.45% | 5.88% | -1.23% | 9.10% | |
54 Neutral | $522.64M | -2.80 | -19.17% | 17.55% | -5.52% | 40.27% | |
46 Neutral | $610.52M | -0.61 | -14.02% | ― | -7.89% | -15.88% | |
46 Neutral | $1.25B | -8.41 | -10.10% | 4.01% | -11.04% | -58.49% |
* Sector Average
PDM
Piedmont Office
8.36
-0.25
-2.90%
HPP
Hudson Pacific Properties
10.32
-10.19
-49.68%
BDN
Brandywine Realty
3.00
-1.79
-37.37%
PGRE
Paramount Group
6.60
1.79
37.21%
DEA
Easterly Government Properties
21.46
-4.14
-16.17%
JBGS
JBG Smith Properties
17.22
2.48
16.82%
Piedmont Office Corporate Events
Private Placements and FinancingRegulatory Filings and Compliance
Piedmont Office Enters Underwriting Agreement for Note Sale
Neutral
Nov 20, 2025
On November 13, 2025, Piedmont Office Realty Trust, Inc. and its Operating Partnership entered into an Underwriting Agreement with several major securities firms, including Wells Fargo Securities and BofA Securities. This agreement involves the sale of notes, which is part of a strategic move to incorporate certain items into a Registration Statement filed with the Securities and Exchange Commission. This development could potentially impact the company’s financial operations and its positioning in the real estate market.
Private Placements and FinancingBusiness Operations and Strategy
Piedmont Office Announces Cash Tender Offer for Notes
Neutral
Nov 13, 2025
On November 13, 2025, Piedmont Realty Trust announced that its operating partnership has initiated a cash tender offer to purchase all outstanding 9.250% senior notes due 2028. This move is part of a strategic financial maneuver aimed at managing its debt obligations, potentially impacting its financial structure and market positioning. The tender offer is set to expire on November 19, 2025, with settlement expected shortly thereafter, contingent upon certain conditions including a concurrent senior notes offering.
Private Placements and FinancingBusiness Operations and Strategy
Piedmont Office Amends Loan Agreements for Financial Flexibility
Neutral
Sep 16, 2025
On September 16, 2025, Piedmont Operating Partnership, a subsidiary of Piedmont Realty Trust, amended its Revolving Credit and Term Loan Agreements to eliminate the credit spread adjustment from SOFR-based interest rates. This strategic financial adjustment could potentially impact Piedmont’s borrowing costs and financial flexibility, influencing its operations and positioning in the real estate market.
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.