Piedmont Realty Trust (PDM) Q3 2026 Earnings Call: Guidance Raised as Leasing Strengthens

Key Takeaways

• Core FFO was $0.39 per diluted share, up $0.04 from Q3 2025, as higher rental rates and commenced occupancy lifted earnings.
• Piedmont completed 43 leases totaling more than 400,000 square feet, split roughly evenly between new business and renewals. The weighted average lease term was approximately 10 years.
• Net effective rent reached $29.31 per square foot per year, more than 30% above the trailing 12-month average. Cash and accrual leasing spreads were 26% and 35%, respectively.
• Same-store NOI increased approximately 8% on a cash basis and 7% on an accrual basis. Signed leases not yet commenced represent about $29 million of annual revenue and 410 basis points of portfolio occupancy.
• Management raised and narrowed 2026 core FFO guidance to $1.55-$1.57 per diluted share, with the midpoint $0.06 above the original outlook.
• The company refinanced its remaining 9.250% unsecured notes due 2028 with $230 million of 2.875% exchangeable senior notes due 2031, reducing its weighted average cost of debt by more than 70 basis points to 4.8%.

Core Financial Data

Business and Operating Performance