Piedmont Office (PDM) AI Stock Analysis

• Market Cap: $936.37M
• Dividend Yield: 6.09%
• Average Volume (3M): 801.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• Revenue Growth: -1.23%
• EPS Growth: 9.10%
• Country: US
• Employees: 150
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): -0.35
• Shares Outstanding: 124,849,525
• 10 Day Avg. Volume: 717,928
• 30 Day Avg. Volume: 801,900
• PEG Ratio: -2.65
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 1.84
• P/FCF Ratio: 7.38
• Enterprise Value/Market Cap: 3.46
• Enterprise Value/Revenue: 5.73
• Enterprise Value/Gross Profit: 19.55
• Enterprise Value/Ebitda: 11.63
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): -0.07
• Revenue Forecast (FY): $564.23M

• Rating: 51 Neutral
• Price Target: $8.00 ▲(3.49% Upside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

The score is held back primarily by weakening financial performance (declining revenue, net losses, and elevated leverage) and bearish-to-weak technical momentum. These are partially offset by constructive earnings-call fundamentals (improving leasing/occupancy trajectory and higher 2026 Core FFO guidance) and a supportive dividend yield despite loss-based valuation metrics.

Positive Factors

Leasing Momentum & Backlog

Sustained, record leasing and a multi-million‑square‑foot backlog provide durable forward cash flow visibility and reduce downtime risk. This backlog supports occupancy normalization, predictable rent roll benefits, and underpins multi-quarter NOI and FFO recovery as leases commence and stabilize.

Consistent Same‑Store NOI & Guidance

Five consecutive years of positive cash same‑store NOI plus explicit mid‑single‑digit FFO guidance signal resilient portfolio economics. Consistent NOI growth supports sustainable cash generation, dividend coverage potential, and the ability to fund redevelopments and leasing capital without relying solely on transactions.

Refinancing & Interest Cost Reduction

Proactive liability management reduces interest burden and extends maturities, improving free cash flow and lowering rollover risk. The actions increase liquidity capacity and create a clearer runway to execute leasing and redevelopment plans while cushioning FFO against rate volatility over the next several years.

Negative Factors

Declining Revenue & Negative Gross Profit

Top‑line erosion and a 2025 gross profit loss indicate structural margin pressure and potential pricing or cost issues. Persistent revenue declines and negative gross profit strain profitability, limit internal funding for capex or dividends, and magnify the impact of any leasing or occupancy setbacks on long‑term FFO.

Elevated Leverage

High leverage relative to current earnings reduces financial flexibility and increases vulnerability to occupancy or interest shocks. Even with recent reductions, the debt load constrains capital allocation, raises refinancing sensitivity as maturities approach, and could pressure FFO if operating trends weaken.

Concentrated 2026 Expirations & Market Headwinds

High concentration of 2026 rollings creates near‑term renewal and vacancy risk that can produce outsized earnings volatility. Coupled with specific market weakness in D.C. and Boston, this concentration could delay stabilization, depress cash NOI in affected quarters, and impede the projected FFO recovery.

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

Income statement trends are weak (declining revenue and recent net losses, with 2025 gross profit turning negative). Balance sheet leverage remains elevated (debt-to-equity ~1.52x) despite some debt reduction. Cash flow is the main support with positive operating cash flow and a 2025 free-cash-flow rebound, though volatility tempers confidence.

Income Statement

Revenue has been drifting down (2023 to 2025: ~$578M to ~$565M), and profitability has weakened materially: net results are negative in 2023–2025 after a strong 2020–2022 period. 2025 shows a sharp deterioration at the gross level (gross profit turned negative), while operating profitability is still positive (EBIT margin ~7.9% and EBITDA margin ~48%), suggesting pressures below/above the line are weighing on reported earnings. Overall, the income statement reflects declining top-line momentum and inconsistent bottom-line performance.

Balance Sheet

The balance sheet is asset-heavy, but leverage is elevated for the current earnings profile. Debt-to-equity sits around ~1.52x in 2025 (down slightly vs. 2024, but higher than 2020–2022), and returns to shareholders are negative in 2023–2025 as equity has not been earning a positive profit. While total debt has come down from 2024 to 2025, the combination of still-high leverage and negative returns keeps balance-sheet quality in the mid-tier with clear downside sensitivity if operating conditions weaken.

Cash Flow

Cash generation is a relative bright spot: operating cash flow remained positive across the period and was ~$141M in 2025. However, cash-flow consistency is mixed—free cash flow swung from positive in 2021–2023 to negative in 2024, then rebounded in 2025. Also, the ability of operating cash flow to cover reported earnings is uneven (strong in 2025, weaker in 2024, and a missing/zero reading in 2023), indicating volatility in the translation of operations into cash and/or period-to-period working-capital/capex effects.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	564.99M	570.32M	577.76M	563.77M	528.71M
Gross Profit	-117.06M	336.20M	342.67M	337.71M	317.78M
EBITDA	271.49M	252.13M	289.10M	437.04M	256.73M
Net Income	-83.60M	-79.07M	-48.39M	146.83M	-1.15M
Balance Sheet
Total Assets	4.03B	4.11B	4.06B	4.09B	3.93B
Cash, Cash Equivalents and Short-Term Investments	731.00K	109.64M	4.21M	16.54M	7.42M
Total Debt	2.27B	2.51B	2.10B	2.04B	1.88B
Total Liabilities	2.53B	2.53B	2.33B	2.24B	2.14B
Stockholders Equity	1.50B	1.59B	1.72B	1.85B	1.79B
Cash Flow
Free Cash Flow	140.56M	-14.00M	51.94M	93.86M	119.58M
Operating Cash Flow	140.56M	198.11M	210.13M	215.22M	242.20M
Investing Cash Flow	-175.35M	-186.62M	-196.02M	-1.25M	-368.93M
Financing Cash Flow	-75.31M	98.18M	-29.50M	-203.23M	126.38M

Piedmont Office Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.73
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PDM, the sentiment is Negative. The current price of 7.73 is below the 20-day moving average (MA) of 8.27, below the 50-day MA of 8.36, and below the 200-day MA of 8.04, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 33.39 is Neutral, neither overbought nor oversold. The STOCH value of 12.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	57 Neutral	$1.08B	85.59	0.93%	9.58%	11.02%	-30.91%
PDM	51 Neutral	$936.37M	-11.51	-4.45%	6.09%	-1.23%	9.10%
BDN	51 Neutral	$561.01M	-3.05	-19.60%	17.55%	-5.52%	40.27%
HPP	47 Neutral	$371.52M	-0.37	-14.02%	―	-7.89%	-15.88%
JBGS	46 Neutral	$1.14B	-7.42	-10.10%	4.01%	-11.04%	-58.49%

Piedmont Office Corporate Events

Piedmont Office Appoints Alex Valente Co-Chief Operating Officer

On February 3, 2026, Piedmont Realty Trust, Inc.’s board appointed long-time executive Alex Valente, 40, as Executive Vice President and Co-Chief Operating Officer, effective immediately. Valente, who has been with the company for nearly two decades and most recently led its Southeast Region, brings extensive experience overseeing leasing, asset management, construction, and redevelopment for key properties and negotiating with some of Piedmont’s largest tenants, signaling continuity in leadership and operational strategy for the office-focused REIT.

The most recent analyst rating on (PDM) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on Piedmont Office stock, see the PDM Stock Forecast page.

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.