Piedmont Realty Trust | 8-K: FY2026 Q1 Revenue: USD 143.29 M

Revenue: As of FY2026 Q1, the actual value is USD 143.29 M.

EPS: As of FY2026 Q1, the actual value is USD -0.1, missing the estimate of USD -0.0321.

EBIT: As of FY2026 Q1, the actual value is USD 50.69 M.

Net Loss

Piedmont Realty Trust, Inc. recognized a net loss of - $12,920 thousand for the first quarter of 2026, compared to a net loss of - $10,104 thousand for the first quarter of 2025.

Funds From Operations (FFO)

NAREIT FFO applicable to common stock was $46,018 thousand for the first quarter of 2026, an increase from $45,033 thousand for the same period in 2025. Core FFO applicable to common stock was $46,018 thousand in the first quarter of 2026, up from $45,533 thousand in the first quarter of 2025.

Adjusted Funds From Operations (AFFO)

Adjusted FFO applicable to common stock was $23,842 thousand for the first quarter of 2026, compared to $23,489 thousand for the first quarter of 2025.

Same Store Net Operating Income (NOI)

Same Store NOI on a cash basis increased by 11.1% for the three months ended March 31, 2026, while on an accrual basis, it increased by 1.9%.

Segment Revenue

Total revenues for the first quarter of 2026 were $143,294 thousand, a slight increase from $142,686 thousand in the first quarter of 2025.

Operating Costs and Expenses

Property operating costs decreased to $57,306 thousand in Q1 2026 from $57,914 thousand in Q1 2025. Depreciation expense increased by 7.7% to $44,027 thousand in Q1 2026 from $40,893 thousand in Q1 2025, while amortization decreased to $15,263 thousand from $15,421 thousand. General and administrative expenses were $7,909 thousand in Q1 2026, compared to $7,563 thousand in Q1 2025.

Other Financial Metrics

Interest expense, net of interest income, increased to $31,897 thousand in Q1 2026 from $31,282 thousand in Q1 2025. Piedmont Realty Trust, Inc. recorded no gain on the sale of real estate assets in Q1 2026, compared to $789 thousand in Q1 2025, and no loss on early extinguishment of debt in Q1 2026, compared to $500 thousand in Q1 2025. Core EBITDA for Q1 2026 was $78,304 thousand, up from $77,605 thousand in Q1 2025.

Operational Metrics

Piedmont Realty Trust, Inc. completed approximately 431,000 square feet of leasing, with 293,000 square feet attributed to new tenant leasing. The cash rent roll up was 11.1%, and the accrual rent roll up was 17.8% for leases executed for spaces vacant one year or less. The in-service portfolio was 89.3% leased as of March 31, 2026, a slight decrease from 89.6% as of December 31, 2025. The out-of-service portfolio was 75.5% leased as of March 31, 2026, an increase from 62.4% as of December 31, 2025. As of March 31, 2026, Piedmont Realty Trust, Inc. had approximately 1.0 million square feet of executed leases for vacant space yet to commence, representing about $42 million in future additional annual cash rents. Additionally, approximately 0.9 million square feet of executed leases were under rental abatement, representing about $26 million in future additional annual cash rents. Piedmont Realty Trust, Inc. entered into a binding contract to sell a 10.6-acre undeveloped land parcel for $12.0 million, with the transaction expected to close later in 2026.

Balance Sheet Metrics

Cash and cash equivalents were $2,279 thousand as of March 31, 2026, increasing from $731 thousand as of December 31, 2025. Total assets stood at $4,033,931 thousand, compared to $4,031,354 thousand. Total debt was $2,252,351 thousand as of March 31, 2026, an increase from $2,224,712 thousand as of December 31, 2025. The weighted average cost of debt decreased to 5.51% from 5.58%. The ratio of net principal amount of debt to total gross assets less cash and cash equivalents was 40.1%, a slight decrease from 40.2%. The average net debt to Core EBITDA (trailing twelve months) remained stable at 7.2x for both periods. As of March 31, 2026, Piedmont Realty Trust, Inc. had approximately $526 million of capacity on its revolving line of credit and no debt maturity requirements until 2028.

Outlook for 2026

Piedmont Realty Trust, Inc. is increasing and narrowing its outlook for the year ending December 31, 2026, anticipating a net loss between - $45 million and - $42 million. NAREIT and Core FFO applicable to common stock are projected to be between $189 million and $196 million, or $1.49 to $1.54 per diluted share. The company expects 1.7 to 2.0 million square feet of executed leasing, leading to an anticipated year-end leased percentage for the in-service portfolio of 89.5% to 90.5%, with Same Store NOI expected to increase by 4% to 7% on both a cash and accrual basis.