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Piedmont Office (PDM)
NYSE:PDM
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Piedmont Office (PDM) AI Stock Analysis

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Piedmont Office

(NYSE:PDM)

Rating:55Neutral
Price Target:
$7.50
▼(-1.83%Downside)
Piedmont Office's overall score reflects significant financial challenges and valuation concerns, particularly due to negative profitability metrics. While the earnings call provided some positive signs of operational strength through leasing activities, the dividend suspension and macroeconomic uncertainties weigh heavily on the outlook. Technical indicators show mixed signals, indicating caution is warranted.

Piedmont Office (PDM) vs. SPDR S&P 500 ETF (SPY)

Piedmont Office Business Overview & Revenue Model

Company DescriptionPiedmont 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 MoneyPiedmont Office Realty Trust makes money primarily through leasing office space in its portfolio of properties to a diverse range of tenants including corporations, government agencies, and other entities. Rental income from these leases constitutes the majority of the company's revenue. Additionally, Piedmont may engage in strategic property sales and acquisitions to optimize its portfolio, which can also contribute to its earnings. The company focuses on maintaining high occupancy rates and attracting long-term tenants to ensure a steady revenue stream. Partnerships with property management firms and local economic development organizations may enhance Piedmont's ability to attract and retain high-quality tenants, thus supporting its financial performance.

Piedmont Office Financial Statement Overview

Summary
Piedmont Office's financial performance shows significant challenges with negative profitability metrics and inconsistent revenue growth. A moderate balance sheet and subdued cash flow generation highlight potential risks and the need for strategic improvements.
Income Statement
45
Neutral
Piedmont Office's income statement reveals challenges in achieving profitability, with a negative net income in the TTM period and declining EBIT and EBITDA margins. The gross profit margin has turned negative, indicating pressure on cost management or revenue generation. Revenue growth is inconsistent, with a significant drop recently, reflecting operational difficulties.
Balance Sheet
60
Neutral
The balance sheet shows moderate stability with a reasonable debt-to-equity ratio and a positive equity ratio, implying the company is not overly leveraged. However, the return on equity is negative due to persistent net losses, raising concerns about shareholder value creation.
Cash Flow
50
Neutral
Cash flow analysis indicates pressure on free cash flow, with a notable decline in the TTM period. The operating cash flow remains positive, but the free cash flow to net income ratio is unfavorable due to negative net income. This suggests challenges in converting earnings into cash.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue568.47M570.32M577.76M563.77M528.71M535.02M
Gross Profit-6.99M336.20M340.72M337.71M317.78M320.09M
EBITDA288.36M270.46M231.06M234.41M218.14M491.54M
Net Income-61.41M-79.07M-48.39M272.58M-62.65M175.11M
Balance Sheet
Total Assets4.00B4.11B4.06B4.09B3.93B3.74B
Cash, Cash Equivalents and Short-Term Investments2.91M109.64M825.00K16.54M7.42M7.33M
Total Debt2.22B2.26B2.05B1.98B1.88B1.62B
Total Liabilities2.44B2.53B2.33B2.24B2.14B1.84B
Stockholders Equity1.56B1.59B1.72B1.85B1.79B1.90B
Cash Flow
Free Cash Flow-27.21M-14.00M51.94M93.86M119.58M80.70M
Operating Cash Flow178.47M198.11M210.13M215.22M242.20M193.28M
Investing Cash Flow-224.41M-186.62M-196.02M-1.25M-368.93M-197.88M
Financing Cash Flow44.82M98.18M-29.50M-203.23M126.38M-1.58M

Piedmont Office Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7.64
Price Trends
50DMA
7.16
Positive
100DMA
7.07
Positive
200DMA
8.11
Negative
Market Momentum
MACD
0.11
Negative
RSI
60.21
Neutral
STOCH
87.64
Negative
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 7.64 is above the 20-day moving average (MA) of 7.43, above the 50-day MA of 7.16, and below the 200-day MA of 8.11, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 60.21 is Neutral, neither overbought nor oversold. The STOCH value of 87.64 is Negative, 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 57 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

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
$1.57B-2.11%0.53%1.67%73.75%
DEDEA
67
Neutral
$1.04B56.031.32%3.10%6.06%-15.10%
59
Neutral
C$1.25B-1.15-8.19%4.99%10.83%-22.67%
59
Neutral
$1.44B-1.29%4.39%5.31%72.97%
BDBDN
56
Neutral
$745.90M-18.11%13.95%-2.22%1.51%
PDPDM
55
Neutral
$946.74M-3.79%6.57%-6.23%18.07%
55
Neutral
$1.60B-8.54%3.79%-12.34%-36.05%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PDM
Piedmont Office
7.64
-0.37
-4.62%
ELME
Elme Communities
16.48
0.97
6.25%
BDN
Brandywine Realty
4.35
0.16
3.82%
PGRE
Paramount Group
6.86
1.48
27.51%
DEA
Easterly Government Properties
23.45
-8.17
-25.84%
JBGS
JBG Smith Properties
18.48
2.37
14.71%

Piedmont Office Corporate Events

Business Operations and Strategy
Piedmont Office Rebrands to Piedmont Realty Trust
Neutral
Jun 9, 2025

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.

The most recent analyst rating on (PDM) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on Piedmont Office stock, see the PDM Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Piedmont Office Holds 2025 Virtual Annual Meeting
Neutral
May 15, 2025

On May 15, 2025, Piedmont Office held its 2025 Annual Meeting virtually, where stockholders elected several individuals to its board of directors for one-year terms expiring in 2026. Additionally, stockholders ratified the appointment of Deloitte and Touche, LLP, as independent registered public accountants for the fiscal year ended December 31, 2025, and approved the compensation of named executive officers on an advisory basis.

The most recent analyst rating on (PDM) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on Piedmont Office stock, see the PDM Stock Forecast page.

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.Date of analysis: Jul 02, 2025