Piedmont Office (PDM) AI Stock Analysis

• Market Cap: $1.08B
• Dividend Yield: 6.09%
• Average Volume (3M): 801.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.74
• Revenue Growth: -1.23%
• EPS Growth: 9.10%
• Country: US
• Employees: 150
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): -0.11
• Shares Outstanding: 124,519,280
• 10 Day Avg. Volume: 717,928
• 30 Day Avg. Volume: 801,900
• 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: 1.22
• Enterprise Value/Revenue: 2.31
• Enterprise Value/Gross Profit: 4.64
• Enterprise Value/Ebitda: 4.51
• 1Y Price Target: $10.00
• Price Target Upside: 15.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: $8.00 ▼(-7.41% 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.

Positive Factors

Record Leasing Activity

Record leasing activity indicates strong demand for Piedmont's office spaces, suggesting resilience in their business model and potential for sustained revenue growth.

Increased Rental Rates

Increased rental rates demonstrate pricing power and ability to capitalize on market demand, enhancing long-term profitability.

High GRESB Rating

A high GRESB rating reflects strong sustainability practices, appealing to environmentally conscious tenants and investors, supporting long-term business viability.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in maintaining market share and competitiveness, potentially impacting long-term financial health.

Profitability Issues

Profitability issues suggest operational inefficiencies and may limit the company's ability to reinvest in growth opportunities.

Lease Renewal Delays

Delays in lease renewals can affect occupancy rates and revenue stability, posing risks to tenant retention and long-term growth.

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 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 Financial Statement Overview

Summary

Piedmont Office faces challenges with profitability and leverage, as indicated by negative net profit margins and a high debt-to-equity ratio. Despite these issues, the company maintains operational efficiency with reasonable gross profit and EBIT margins. However, the decline in free cash flow growth highlights potential liquidity issues.

Income Statement

Piedmont Office's income statement reveals challenges with profitability, as indicated by negative net profit margins and declining revenue growth. The TTM data shows a net loss, and revenue has decreased slightly. However, the company maintains a reasonable gross profit margin and EBIT margin, suggesting some operational efficiency.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, indicating significant leverage, which poses a risk. However, the equity ratio remains stable, and the company has managed to maintain a reasonable level of equity relative to its assets. Return on equity is negative, reflecting the net losses.

Cash Flow

Cash flow analysis indicates a decline in free cash flow, with negative growth rates. The operating cash flow to net income ratio is positive, suggesting that the company is generating cash from operations despite net losses. However, the free cash flow to net income ratio is concerning due to the negative free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	565.37M	570.32M	577.76M	563.77M	528.71M	535.02M
Gross Profit	281.92M	336.20M	342.67M	337.71M	317.78M	320.09M
EBITDA	289.59M	252.13M	289.10M	437.04M	256.73M	292.63M
Net Income	-70.35M	-79.07M	-48.39M	146.83M	-1.15M	232.69M
Balance Sheet
Total Assets	4.00B	4.11B	4.06B	4.09B	3.93B	3.74B
Cash, Cash Equivalents and Short-Term Investments	2.99M	109.64M	4.21M	16.54M	7.42M	7.33M
Total Debt	2.22B	2.51B	2.10B	2.04B	1.88B	1.63B
Total Liabilities	2.47B	2.53B	2.33B	2.24B	2.14B	1.84B
Stockholders Equity	1.54B	1.59B	1.72B	1.85B	1.79B	1.90B
Cash Flow
Free Cash Flow	-33.27M	-14.00M	51.94M	93.86M	119.58M	80.70M
Operating Cash Flow	154.67M	198.11M	210.13M	215.22M	242.20M	193.28M
Investing Cash Flow	-206.24M	-186.62M	-196.02M	-1.25M	-368.93M	-197.88M
Financing Cash Flow	-77.26M	98.18M	-29.50M	-203.23M	126.38M	-1.58M

Piedmont Office Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 8.64 is above the 20-day moving average (MA) of 8.40, above the 50-day MA of 8.35, and above the 200-day MA of 7.80, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 59.06 is Neutral, neither overbought nor oversold. The STOCH value of 81.38 is Negative, 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
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
DEA	58 Neutral	$1.05B	74.98	1.00%	9.58%	11.02%	-30.91%
PDM	55 Neutral	$1.08B	-15.26	-4.45%	6.09%	-1.23%	9.10%
BDN	54 Neutral	$540.07M	-2.89	-19.17%	17.55%	-5.52%	40.27%
HPP	46 Neutral	$561.42M	-0.56	-14.02%	―	-7.89%	-15.88%
JBGS	46 Neutral	$1.26B	-8.46	-10.10%	4.01%	-11.04%	-58.49%

Piedmont Office Corporate Events

Piedmont Office Enters Underwriting Agreement for Note Sale

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.

The most recent analyst rating on (PDM) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Piedmont Office stock, see the PDM Stock Forecast page.

Piedmont Office Announces Cash Tender Offer for Notes

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.

The most recent analyst rating on (PDM) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on Piedmont Office stock, see the PDM Stock Forecast page.