Piedmont Office (PDM)
NYSE:PDM
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Piedmont Office
(NYSE:PDM)
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Rating:51Neutral
Price Target:
$6.50
▼(-1.22% Downside)
Action:ReiteratedDate: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
Record leasing volume and pipeline
Sustained, outsized leasing (2.5M sq ft) materially reduces vacancy and builds a lease backlog that converts to multi-period cash rents. This durable demand and pipeline improve near-term occupancy, support NOI, and underpin FFO over the 2–6 month planning horizon and into 2026.
Negative Factors
Declining revenue and negative profitability
Falling top-line and consecutive net losses signal structural pressure on margin sustainability. Negative gross profit in 2025 suggests cost or revenue-recognition stress that can depress distributable cash flow and limit the REIT's ability to fund dividends or reinvest without selling assets.
Read all positive and negative factors
Positive Factors
Negative Factors
Record leasing volume and pipeline
Sustained, outsized leasing (2.5M sq ft) materially reduces vacancy and builds a lease backlog that converts to multi-period cash rents. This durable demand and pipeline improve near-term occupancy, support NOI, and underpin FFO over the 2–6 month planning horizon and into 2026.
Read all positive factors
Piedmont Office (PDM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$822.62M
Dividend Yield6.09%
Average Volume (3M)801.90K
Price to Earnings (P/E)―
Beta (1Y)0.85
Revenue Growth-1.23%
EPS Growth9.10%
CountryUS
Employees150
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)-0.35
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 Cap3.76
Enterprise Value/Revenue5.48
Enterprise Value/Gross Profit18.69
Enterprise Value/Ebitda11.12
Forecast
1Y Price Target
$10.00Price Target Upside51.98% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.07
Revenue Forecast (FY)$521.36M
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 m...
How the Company Makes Money
PDM primarily makes money by leasing office space in its portfolio to tenants under contractual lease agreements. The core revenue stream is rental income (base rent) collected from occupied space; this is typically supported by additional recover...
Piedmont Office Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational momentum with record leasing, material rent roll-ups, a sizable lease backlog, and constructive 2026 guidance, supported by balance-sheet actions that reduce future interest costs. Challenges are present—most notably a small decline in Core FFO in 2025, modest AFFO, market-specific headwinds (e.g., parts of D.C. and one Boston asset), and near-term uncertainty from several concentrated 2026 expirations. On balance, the positive operational and financial trends and clear path to mid-single-digit FFO growth in 2026–2027 outweigh the identified weaknesses.Positive Updates
Improving Portfolio Lease Percentage
Year-end lease percentage of 89.6%, up 120 basis points during 2025; company guidance expects year-end portfolio lease percentage of ~89.5%–90.5% for 2026 and projects commenced/occupied percentage to rise ~400 basis points from 81% to 85% by year-end 2026.
Negative Updates
Core FFO Decline in 2025
Core FFO per diluted share decreased to $0.35 in 2025 from $0.37 in 2024 (≈5.4% decline), attributed to the sale of two projects and higher net interest expense from refinancing activity.
Read all updates
Q4-2025 Updates
Positive
Negative
Improving Portfolio Lease Percentage
Year-end lease percentage of 89.6%, up 120 basis points during 2025; company guidance expects year-end portfolio lease percentage of ~89.5%–90.5% for 2026 and projects commenced/occupied percentage to rise ~400 basis points from 81% to 85% by year-end 2026.
Read all positive updates
Company Guidance
Piedmont guided 2026 Core FFO of $1.47–$1.53 per diluted share (midpoint +$0.08 vs. 2025), driven by an expected property NOI benefit of $0.08–$0.13 per share, lower interest expense of $0.01–$0.02 per share (including roughly $0.04 of annualized savings from a recent $400M bond issuance that repurchased ~$245M of 9.25% 2028 paper, partially offset by reduced capitalized interest), and offset modestly by a $0.01 per share NOI reduction from 2025 dispositions plus slightly higher G&A and share count. The guidance assumes 1.7–2.0M sq ft of 2026 leasing, stabilization of the out‑of‑service portfolio by year‑end, a year‑end lease percentage of ~89.5%–90.5%, mid‑single‑digit same‑store NOI growth (cash and accrual), and about a 400‑bp increase in commenced/occupied percent to ~85% (from 81%), and excludes any future acquisitions, dispositions or refinancings; supplemental materials include an FFO roll‑forward and the modeling assumptions.Piedmont Office Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
46
Neutral
Cash Flow
58
Neutral
| 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 | -16.68M | -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
Negative
6.58
Price Trends
7.52
Negative
7.95
Negative
8.01
Negative
Market Momentum
-0.28
Negative
40.03
Neutral
46.44
Neutral
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 6.58 is below the 20-day moving average (MA) of 6.67, below the 50-day MA of 7.52, and below the 200-day MA of 8.01, indicating a bearish trend. The MACD of -0.28 indicates Negative momentum. The RSI at 40.03 is Neutral, neither overbought nor oversold. The STOCH value of 46.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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% | |
57 Neutral | $1.02B | 73.21 | 0.98% | 9.58% | 11.02% | -30.91% | |
51 Neutral | $822.62M | -6.00 | -4.45% | 6.09% | -1.23% | 9.10% | |
51 Neutral | $458.22M | -2.82 | -20.40% | 17.55% | -5.52% | 40.27% | |
46 Neutral | $342.88M | -0.88 | -17.84% | ― | -7.89% | -15.88% | |
46 Neutral | $1.10B | -5.54 | -10.61% | 4.01% | -11.04% | -58.49% |
* Real Estate Sector Average
PDM
Piedmont Office
6.58
0.46
7.52%
HPP
Hudson Pacific Properties
6.24
-9.02
-59.11%
BDN
Brandywine Realty
2.63
-0.64
-19.47%
DEA
Easterly Government Properties
21.95
0.77
3.66%
JBGS
JBG Smith Properties
14.52
0.71
5.16%
Piedmont Office Corporate Events
Business Operations and StrategyExecutive/Board Changes
Piedmont Office Appoints Alex Valente Co-Chief Operating Officer
Positive
Feb 3, 2026
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...
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.