Piedmont Office (PDM)
NYSE:PDM
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Piedmont Office
(NYSE:PDM)
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Rating:57Neutral
Price Target:
$9.50
▲(22.11% Upside)
Action:Reiterated
Date:05/13/26
The score is primarily held back by weak financial performance (declining revenue and continued losses) despite improved leverage and positive operating cash flow. Offsetting this are constructive technical momentum and a positive earnings-call backdrop driven by stronger leasing and slightly improved 2026 outlook, while valuation remains challenged due to negative earnings and no provided dividend yield.
Positive Factors
Leasing Momentum and Rent Growth
Sustained, large-scale leasing and meaningful rent roll-ups signal durable demand for Piedmont’s Sun Belt Class A product. Continued new-tenancy wins, a large legal-stage pipeline and high accrual roll-ups support recurring rental cash flows and raise long-term income potential if execution persists.
Negative Factors
Declining Revenue and Negative Profitability
A steep top-line decline and persistent negative net margins indicate earnings quality issues that free cash flow may not fully mask. Until revenues and below-the-line charges normalize, the company faces constrained ability to generate consistent distributable cash and rebuild earnings-based metrics.
Read all positive and negative factors
Positive Factors
Negative Factors
Leasing Momentum and Rent Growth
Sustained, large-scale leasing and meaningful rent roll-ups signal durable demand for Piedmont’s Sun Belt Class A product. Continued new-tenancy wins, a large legal-stage pipeline and high accrual roll-ups support recurring rental cash flows and raise long-term income potential if execution persists.
Read all positive factors
Piedmont Office (PDM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.14B
Dividend Yield6.09%
Average Volume (3M)801.90K
Price to Earnings (P/E)―
Beta (1Y)0.90
Revenue Growth-0.50%
EPS Growth-40.17%
CountryUS
Employees150
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)-0.70
Shares Outstanding125,019,005
10 Day Avg. Volume717,928
30 Day Avg. Volume801,900
Financial Highlights & Ratios
PEG Ratio-2.65
Price to Book (P/B)0.69
Price to Sales (P/S)1.84
P/FCF Ratio-62.23
Enterprise Value/Market Cap2.91
Enterprise Value/Revenue5.86
Enterprise Value/Gross Profit68.61
Enterprise Value/Ebitda12.21
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.06
Revenue Forecast (FY)$582.77M
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:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational momentum driven by robust leasing, meaningful rent roll-ups and improving same-store NOI, alongside balance sheet flexibility and tangible pipeline activity. Management raised guidance modestly and highlighted multiple positive metrics (net effective rent growth, high renewal/retention rates, redevelopment lease-up progress and substantial revolver capacity). Key risks include concentrated near-term expirations, suspended dividend policy, reliance on continued leasing execution to sustain growth and some timing uncertainty around dispositions and a New York lease public hearing. Overall, the positive leasing and financial indicators materially outweigh the manageable near-term risks.Positive Updates
Strong Leasing Momentum
Executed over 430,000 square feet of leasing in Q1 2026 (~50 transactions), with roughly 2/3 attributable to new tenancy; leasing pipeline exceeded 700,000 square feet in the legal stage for Q2 and outstanding proposals rose from 1.8 million to 2.4 million square feet quarter-over-quarter.
Negative Updates
Near-Term Large Lease Expirations and Concentrations
9% of leases expire in 2026 with the vast majority occurring in Q2 and concentrated among a few large tenants (notably Eversheds, Epsilon and the New York City lease) — though management has already backfilled or negotiated terms for portions of these exposures.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Leasing Momentum
Executed over 430,000 square feet of leasing in Q1 2026 (~50 transactions), with roughly 2/3 attributable to new tenancy; leasing pipeline exceeded 700,000 square feet in the legal stage for Q2 and outstanding proposals rose from 1.8 million to 2.4 million square feet quarter-over-quarter.
Read all positive updates
Company Guidance
Piedmont slightly raised and narrowed its 2026 outlook, increasing annual core FFO guidance by $0.01 to $1.49–$1.54 per diluted share (an implied >$0.10 midpoint increase vs. 2025) and boosting same‑store NOI (cash and GAAP) guidance by 100 basis points to 4%–7% (from 3%–6%); Q1 metrics included core FFO of $0.36 and AFFO of ~ $23.8 million, and management reiterated year‑end total portfolio lease percentage guidance of 89.5%–90.5%. The company noted ~$526 million of revolver capacity, no final debt maturities until 2028, an improving weighted average cost of debt and an expectation that unsecured maturities this decade could be refinanced at lower rates (a potential FFO tailwind); guidance excludes any speculative acquisitions, dispositions or refinancing activity.Piedmont Office Financial Statement Overview
Summary
Income Statement
33
Negative
Balance Sheet
54
Neutral
Cash Flow
50
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 565.60M | 564.99M | 570.32M | 577.76M | 563.77M | 528.71M |
| Gross Profit | 48.27M | -117.06M | 336.20M | 342.67M | 337.71M | 317.78M |
| EBITDA | 271.31M | 271.49M | 221.81M | 289.10M | 437.04M | 256.73M |
| Net Income | -86.42M | -83.60M | -79.07M | -48.39M | 146.83M | -1.15M |
Balance Sheet | ||||||
| Total Assets | 4.03B | 4.03B | 4.11B | 4.06B | 4.09B | 3.93B |
| Cash, Cash Equivalents and Short-Term Investments | 2.28M | 731.00K | 109.64M | 825.00K | 16.54M | 7.42M |
| Total Debt | 2.28B | 2.27B | 2.51B | 2.10B | 2.04B | 1.88B |
| Total Liabilities | 2.55B | 2.53B | 2.53B | 2.33B | 2.24B | 2.14B |
| Stockholders Equity | 1.48B | 1.50B | 1.59B | 1.72B | 1.85B | 1.79B |
Cash Flow | ||||||
| Free Cash Flow | 9.07M | -16.68M | -14.00M | 51.94M | 93.86M | 119.58M |
| Operating Cash Flow | 164.96M | 140.56M | 198.11M | 210.13M | 215.22M | 242.20M |
| Investing Cash Flow | -183.92M | -175.35M | -186.62M | -196.02M | -1.25M | -368.93M |
| Financing Cash Flow | 18.66M | -75.31M | 98.18M | -29.50M | -203.23M | 126.38M |
Piedmont Office Technical Analysis
Positive
7.78
Price Trends
8.09
Positive
7.84
Positive
8.15
Positive
Market Momentum
0.29
Negative
66.77
Neutral
69.17
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 7.78 is below the 20-day moving average (MA) of 8.48, below the 50-day MA of 8.09, and below the 200-day MA of 8.15, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 66.77 is Neutral, neither overbought nor oversold. The STOCH value of 69.17 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% | |
63 Neutral | $1.12B | 98.93 | 0.85% | 9.58% | 13.93% | -43.58% | |
57 Neutral | $1.14B | -13.14 | -5.70% | 6.09% | -0.50% | -40.17% | |
54 Neutral | $847.85M | -1.83 | -17.20% | ― | -0.88% | 47.15% | |
52 Neutral | $564.50M | -2.81 | -24.69% | 17.55% | -2.12% | 3.11% | |
50 Neutral | $1.10B | -7.76 | -9.32% | 4.01% | -3.31% | 0.50% |
* Real Estate Sector Average
PDM
Piedmont Office
9.10
1.59
21.17%
HPP
Hudson Pacific Properties
15.29
-3.96
-20.57%
BDN
Brandywine Realty
3.24
-0.79
-19.50%
DEA
Easterly Government Properties
24.04
2.84
13.40%
JBGS
JBG Smith Properties
14.72
-2.95
-16.69%
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.