Piedmont Realty Trust is like the publicly-traded landlord for high-end office buildings across the Eastern U.S. and Sunbelt, similar to how Simon Property Group is a landlord for shopping malls or Prologis is for industrial warehouses.

Piedmont Realty Trust (PDM) primarily provides the following services:

• Office Property Leasing: Piedmont owns and operates Class A office properties and generates revenue by leasing these spaces to various tenants.
• Property Management: The company provides ongoing management and operational services for its portfolio of office properties to maintain their quality and tenant satisfaction.
• Property Development and Redevelopment: Piedmont engages in the development of new office properties and the redevelopment of existing ones to enhance their value and expand its portfolio.

Piedmont Realty Trust (NYSE: PDM) sells primarily to other companies. However, based on its financial disclosures, Piedmont Realty Trust has a highly diversified tenant base and does not have individual "major customers" that account for a significant portion of its total revenue. For instance, as of December 31, 2022, no single tenant accounted for more than 4.3% of its total annualized rent.

Therefore, while it does not have specific named major customers, its customer base consists of a wide variety of businesses and organizations that lease high-quality, Class A office properties across various industries. These include, but are not limited to:

• Professional & Business Services firms
• Financial Services companies
• Government entities
• Healthcare organizations
• Technology companies

Piedmont's strategy focuses on a diversified portfolio of tenants across different sectors to mitigate risk, rather than relying on a few large clients.

C. Brent Smith President, Chief Executive Officer & Director

Mr. Smith has served as President and Chief Executive Officer of Piedmont Realty Trust since July 2019, and as a director since 2019. Before becoming CEO, he was the company's Chief Investment Officer for four years. Prior to joining Piedmont in 2012, Mr. Smith was an Executive Director with Morgan Stanley in the Real Estate Investment Banking division, where he provided advisory services to a wide range of public and private real estate clients. He brings approximately 20 years of real estate transaction experience across North America and Asia. His professional network includes private and public pension equity investors and top-tier investment bankers.

Sherry Rexroad Executive Vice President, Chief Financial Officer

Ms. Rexroad was appointed Chief Financial Officer, effective November 8, 2024. She brings approximately 30 years of experience in REITs, real estate, finance, and capital markets. Most recently, she served as CFO of STORE Capital, a publicly traded net-lease REIT. Before that, she spent a decade at BlackRock Global Real Asset Securities, where she held roles including Global Head of Business Development, Co-Global Chief Investment Officer, and Chair of the Investment Committee. She is also a current board member of Apartment Investment and Management Company (NYSE: AIV).

George Wells Executive Vice President, Chief Operating Officer

Mr. Wells serves as Executive Vice President and Chief Operating Officer. As of February 2026, he is also Co-Chief Operating Officer, working alongside Alex Valente, to oversee property and asset management.

Laura P. Moon Executive Vice President, Chief Accounting Officer and Treasurer

Ms. Moon has served as Chief Accounting Officer since 2007, Executive Vice President since 2025, and Treasurer since 2023. She possesses over 30 years of experience in accounting and reporting for public companies. At Piedmont, she is responsible for all treasury, general ledger accounting, SEC, and tax reporting functions. Her prior roles include Vice President and Chief Accounting Officer at Piedmont's former advisor, Chief Accounting Officer at Wells Real Estate Investment Trust, Inc. in 2007, Chief Accounting Officer at NetBank, Inc. from 1999 to 2002, and Senior Director-Financial Planning & Analysis at Lexisnexis Risk Assets, Inc. in 2005. She began her career in 1991 at Deloitte & Touche LLP as a Senior Manager.

Christopher Kollme Executive Vice President, Investments & Strategy

Mr. Kollme holds the position of Executive Vice President of Investments & Strategy. He is also listed as Executive Vice President, Investments.

The key risks for Piedmont Office Realty Trust (PDM) are primarily its elevated financial leverage, ongoing challenges related to the demand for office space and occupancy rates, and persistent financial performance concerns, including net losses and declining Funds From Operations (FFO).

1. Elevated Financial Leverage: Piedmont Office Realty Trust faces significant risk due to its high level of financial leverage. Debt accounts for a substantial portion of its enterprise value, with sources indicating it's between 72% and 75%. The company has experienced elevated funding stress, as evidenced by recent high-interest rate debt issuances. Upcoming debt maturities, such as those in March 2025, are anticipated to further increase the company's weighted average interest rate, leading to higher interest expenses in a rising rate environment. This high leverage also contributes to increased share price volatility.
2. Shifts in Office Space Demand and Occupancy: As an owner of Class A office properties, Piedmont is highly sensitive to market trends affecting the demand for office space. The enduring shift towards remote work and flexible office arrangements, accelerated by the pandemic, poses a long-term threat. This trend could result in sustained pressure on occupancy rates, the need for rent reductions, or costly property redevelopments to adapt to evolving tenant requirements. While the company's occupancy rates have seen marginal improvements recently, they remain below pre-pandemic levels. The risk persists that office demand may not fully recover, even in its key Sunbelt markets.
3. Financial Performance Concerns: Piedmont has reported consistent financial performance challenges, including net losses and a decline in Funds From Operations (FFO). The company recognized a net loss of $30.0 million in Q4 2024 and $13.5 million for Q3 2025. Core FFO also decreased in 2023 and 2024, with further declines projected for 2025. These financial pressures are exacerbated by increased depreciation expenses and elevated interest costs, limiting the company's ability to invest in new opportunities or withstand economic downturns.

The sustained and growing adoption of remote and hybrid work models, reducing the demand for traditional office space and impacting occupancy rates and lease terms.

The addressable market for Piedmont Realty Trust's main products and services, which are high-quality, Class A office properties, can be estimated based on the overall U.S. office real estate market. The U.S. office real estate market was valued at approximately USD 369.58 billion in 2025 and is projected to grow to USD 381.48 billion in 2026. This market is expected to reach USD 447.86 billion by 2031, growing at a compound annual growth rate (CAGR) of 3.22%.

Specifically, Class A properties represent a significant portion of this market. In 2025, Grade A stock held 58.56% of the United States office real estate market share. Based on the 2025 valuation of the U.S. office real estate market, the estimated size of the Class A office market in the U.S. was approximately USD 216.42 billion (58.56% of USD 369.58 billion). Grade A space is projected to expand at a 3.76% CAGR to 2031.

Piedmont Realty Trust primarily operates in select sub-markets within seven major Eastern U.S. office markets, with a majority of its revenue generated from the Sunbelt region. The Sunbelt region, encompassing eighteen states in the Southeast and Southwest, holds about 50% of the national population and is experiencing significant growth in its office market. Class A assets in high-growth Sunbelt metros, such as Dallas, Charlotte, and Nashville, continue to attract strong tenant demand, driven by population growth, sustained job creation, and evolving workplace strategies. Companies are increasingly relocating to Sunbelt cities from coastal regions, contributing to rising demand and more favorable market dynamics for landlords in these areas.

The market size provided is for the broader U.S. region, as a specific addressable market size for "select sub-markets within seven major Eastern U.S. office markets with a majority of revenue from the Sunbelt" is not explicitly available as a single figure.

Piedmont Realty Trust (PDM) anticipates several key drivers for its future revenue growth over the next 2-3 years, stemming from its strategic operational focus and market dynamics:

1. Increased Leasing Activity and Occupancy Growth: Piedmont has achieved record leasing volumes, with 2.5 million square feet leased in 2025, the highest in over a decade. The company's in-service lease percentage rose to 89.6% by the end of 2025, and it projects this to further increase to approximately 89.5% to 90.5% for the entire portfolio by year-end 2026. A substantial backlog of nearly $40 million in annualized uncommenced leases is expected to commence by the end of 2026, directly contributing to future revenue.
2. Rental Rate Growth: The company has experienced significant increases in rental rates, with executed leases for space vacant less than a year showing approximately 12% cash and 21% accrual basis increases in Q4 2025. Management anticipates substantial rent growth, potentially 20-40% in its Sun Belt portfolio, driven by strong demand for premium spaces, limited new construction, and current rents being below new construction costs.
3. Strategic Focus on High-Quality, Amenity-Rich Properties in Sunbelt Markets: Piedmont's strategy of owning and operating recently renovated, well-located, and amenity-rich Class A office properties, particularly in high-growth Sun Belt markets, continues to attract tenants and enable higher rental rates. This focus aligns with tenant demand for upgraded office experiences and is supported by ongoing population and job growth in these regions.
4. Stabilization of Redevelopment Assets: The company expects earnings growth to be fueled by the stabilization of its out-of-service portfolio, which includes projects in Minneapolis and Orlando, by the end of 2026. For example, a significant lease with Travel and Leisure in Orlando commenced in September 2025 and is set to contribute meaningfully to results.
5. Interest Expense Savings from Refinancing: Recent refinancing activities, including amending revolving credit facilities and term loans, and bond refinancing, are projected to lead to lower net interest expenses. These savings are expected to be a tailwind for Funds From Operations (FFO) per share growth, with an estimated annual saving of approximately $0.04 per share, enhancing the company's profitability.

Capital Expenditures

• Piedmont Realty Trust has consistently invested in building upgrades and adding amenities to differentiate its properties and attract a diverse tenant base, with redevelopment projects noted in markets such as Minneapolis and Dallas.
• The company is dedicated to transforming its properties into "Piedmont PLACEs," focusing on enhancing the workplace environment through premium workspaces and superior service.
• In April 2025, the company suspended its common stock dividend to fund future growth and meet the capital and free rent requirements associated with its significant leasing success, indicating a redirection of capital towards property enhancements and tenant improvements. The company anticipates additional capital expenditures in the short term for executed leases yet to commence.