Piedmont Realty Trust (PDM) Financials

Piedmont Realty Trust (NYSE: PDM) has demonstrated several notable financial trends over the past four years, with detailed quarterly data available through Q2 2025.

The company operates in the real estate investment trust (REIT) sector, focusing on office properties. Below is an analysis of key financial metrics and trends based on income statements, cash flow statements, and balance sheets from Q2 2022 to Q2 2025.

• Steady Total Revenue from Non-Interest Income: Throughout recent years, Piedmont has maintained relatively stable total non-interest revenue around $140 million per quarter, reflecting consistent core business income.
• Strong Depreciation and Amortization Coverage: Depreciation and amortization expenses are high as expected for a real estate company, showing their significant asset base, but stable coverage indicates a consistent asset utilization.
• Operating Cash Flow Improvement in Recent Quarters: In early 2025, notably Q2 2025, operating cash flow improved to $50.1 million, up significantly from $3.7 million in Q1 2025, suggesting better operational efficiency or timing of cash receipts.
• Large Asset Base with Premier Properties: Total assets are consistently around $4 billion, indicating a strong asset foundation for generating rental income and potential future growth.
• Controlled Dividend Payouts per Share: Dividends have been steady at or near $0.125 per share in 2024 and 2025, showing a stable shareholder return policy despite some net losses.

• Net Income Fluctuations and Recent Losses: Piedmont has experienced recurring net losses each quarter since Q3 2023, with a continuing operations loss of about $16.8 million in Q2 2025. This could relate to market pressures or increased expenses.
• Moderate Long-Term Debt Load: Long-term debt ranges around $2.2 billion across recent quarters, which is significant but expected in the REIT industry. The company appears to manage debt repayments alongside new issuances.
• Stable Shares Outstanding: Basic and diluted shares outstanding have remained steady at approximately 124 million shares, indicating no recent dilution.

• Consistent Quarterly Net Losses: Since late 2023, Piedmont has reported consistent net losses each quarter, with EPS falling from about -$0.14 in Q2 2025 to -$0.25 in Q4 2024, representing pressures on profitability.
• Negative Nonoperating Income: Substantial negative nonoperating expenses, approximately -$39 million in Q2 2025, have contributed significantly to declining pre-tax income.
• Heavy Capital Expenditure Impact: Frequent high capital expenditures in property and equipment purchases ($30-70 million per quarter) negatively impact cash flow but are required for maintenance and growth.
• Volatile Financing Cash Flows and Debt Repayment: Large swings in issuance and repayment of debt suggest refinancing activity and possible financial restructuring. For example, Q1 2025’s issuance of $366 million versus $404 million repayment.
• Declining Equity and Negative Equity Adjustments: Accumulated other equity adjustments have steadily increased negatively, reducing total common equity from about $1.8 billion in early 2023 to approximately $1.55 billion in mid-2025.

Summary: Piedmont Realty Trust has a solid asset base with consistent revenue streams primarily from non-interest income, typical of a REIT focused on office properties. However, the company has faced challenges in profitability with ongoing net losses driven by nonoperating expenses and high capital expenditures. Cash flow from operations has shown some recent improvement, but financing activities indicate ongoing debt restructuring. Investors should watch Piedmont’s strategies to control nonoperating losses and manage its capital expenditures efficiently while preserving shareholder equity and dividend stability.