Piedmont Realty Trust (PDM) Financials

Piedmont Office Realty Trust (NYSE: PDM) has exhibited several notable financial trends over the last few years, based on its quarterly financial statements from Q2 2022 through Q2 2025.

• Consistent revenue generation: Total revenue has been relatively stable, ranging roughly between $136 million and $147 million per quarter since 2022, indicating steady business operations.
• Strong depreciation and amortization add-backs to cash flows: Depreciation and amortization expenses, non-cash charges, remain substantial (~$38M to $41M for depreciation and around $15M to $23M for amortization quarterly), supporting healthy operating cash flows despite net losses.
• Net cash from operating activities is positive most quarters: Operating cash flow often exceeds $40 million per quarter, reaching as high as $66.8 million, reflecting effective cash generation even in loss quarters.
• Substantial property and equipment base: The company’s net premises and equipment assets have been around $3.2 billion to $3.3 billion, showing a strong physical asset base for a real estate investment trust (REIT).
• Stable dividend payments: Cash dividends per share were steady at $0.125 per quarter in recent periods (Q1 2024-Q2 2025), indicating commitment to shareholder returns.

• Consistent net losses: The company reported negative net income continuing operations for multiple quarters including recent ones (e.g., -$16.8 million in Q2 2025, -$10 million in Q1 2025), indicating challenges in profitability.
• High amortization expenses: Amortization expenses are persistent and sizable, around $15-$22 million quarterly, which impacts net income but is non-cash.
• Fluctuating non-operating income/expense: Net non-operating expenses have varied between -$21 million and -$39 million per quarter, which pressures earnings.
• Debt issuance and repayments: The company actively manages its debt, issuing and repaying hundreds of millions quarterly, which affects cash flow variability but suggests active capital structure management.
• Large negative equity adjustments: Other equity adjustments have been significantly negative (around -$2.1 billion recently), which could indicate accumulated losses or other equity impairments affecting shareholders’ equity.

• Ongoing net losses and negative earnings per share trend: The company experienced multiple quarters of negative EPS ranging from -$0.01 up to -$0.25 per share, evidencing ongoing profitability issues.
• Impairment charges and high non-interest expenses: Periodic impairment charges (up to $18 million in some quarters) and non-interest expenses close to or exceeding $120 million quarterly indicate high operating costs and asset write-downs hurting profitability.
• Increasing long-term liabilities: Long-term debt remains above $2 billion, with high leverage levels relative to total equity (~$1.5 billion), which may increase financial risk amid operating challenges.
• Investing activity outflows: Substantial ongoing capital expenditures (~$25M-$72M quarterly) and negative net cash from investing activities reduce liquidity and require financing support.
• Declining total equity: Total common equity declined from approximately $1.8 billion in early 2023 to near $1.5 billion by mid-2025, reflecting negative accumulated comprehensive income and equity adjustments, potentially eroding investor value.

Summary: Piedmont Office Realty Trust operates with a solid asset base and generates consistent operating cash flow despite ongoing net losses and high non-interest expenses. The company maintains its dividend but faces profitability headwinds due to impairment charges, high amortization, and recurring non-operating expenses. Leveraging and capital expenditures remain high to support its property portfolio. Investors should watch for improvements in net income, efficient cost control, and equity stabilization to gauge potential turnaround.