QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT of 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT of 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
Title of each class | Trading Symbol(s) | Name of exchange on which registered | ||||||||||||
x | Accelerated filer | ☐ | ||||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
Emerging growth company |
Page No. | |||||||||||
PART I | Financial Information | ||||||||||
Item 1. | |||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
PART II. | Other Information | ||||||||||
Item 1. | |||||||||||
Item 1A. | |||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
Item 5. | |||||||||||
Item 6. |
March 31, 2021 | December 31, 2020 | ||||||||||
Assets: | |||||||||||
Real estate assets, at cost: | |||||||||||
Land | $ | $ | |||||||||
Buildings and improvements, less accumulated depreciation of $ | |||||||||||
Intangible lease assets, less accumulated amortization of $ | |||||||||||
Construction in progress | |||||||||||
Total real estate assets | |||||||||||
Cash and cash equivalents | |||||||||||
Tenant receivables, net of allowance for doubtful accounts of $ | |||||||||||
Straight-line rent receivables | |||||||||||
Note receivable | |||||||||||
Restricted cash and escrows | |||||||||||
Prepaid expenses and other assets | |||||||||||
Goodwill | |||||||||||
Deferred lease costs, less accumulated amortization of $ | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities: | |||||||||||
Unsecured debt, net of discount and unamortized debt issuance costs of $ | $ | $ | |||||||||
Secured debt, net of premiums and unamortized debt issuance costs of $ | |||||||||||
Accounts payable, accrued expenses and accrued capital expenditures | |||||||||||
Dividends payable | |||||||||||
Deferred income | |||||||||||
Intangible lease liabilities, less accumulated amortization of $ | |||||||||||
Interest rate swaps | |||||||||||
Total liabilities | |||||||||||
Stockholders’ Equity: | |||||||||||
Shares-in-trust, | |||||||||||
Preferred stock, | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Cumulative distributions in excess of earnings | ( | ( | |||||||||
Other comprehensive loss | ( | ( | |||||||||
Piedmont stockholders’ equity | |||||||||||
Noncontrolling interest | |||||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2021 | 2020 | ||||||||||
Revenues: | |||||||||||
Rental and tenant reimbursement revenue | $ | $ | |||||||||
Property management fee revenue | |||||||||||
Other property related income | |||||||||||
Expenses: | |||||||||||
Property operating costs | |||||||||||
Depreciation | |||||||||||
Amortization | |||||||||||
General and administrative | |||||||||||
Other income (expense): | |||||||||||
Interest expense | ( | ( | |||||||||
Other income | |||||||||||
Gain on sale of real estate assets | |||||||||||
( | ( | ||||||||||
Net income | |||||||||||
Net loss/(income) applicable to noncontrolling interest | ( | ||||||||||
Net income applicable to Piedmont | $ | $ | |||||||||
Per share information – basic and diluted: | |||||||||||
Net income applicable to common stockholders | $ | $ | |||||||||
Weighted-average common shares outstanding – basic | |||||||||||
Weighted-average common shares outstanding – diluted |
Three Months Ended | |||||||||||||||||||||||
March 31, | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Net income applicable to Piedmont | $ | $ | |||||||||||||||||||||
Other comprehensive income/(loss): | |||||||||||||||||||||||
Effective portion of gain/(loss) on derivative instruments that are designated and qualify as cash flow hedges (See Note 4) | ( | ||||||||||||||||||||||
( | |||||||||||||||||||||||
Other comprehensive income/(loss) | ( | ||||||||||||||||||||||
Comprehensive income/(loss) applicable to Piedmont | $ | $ | ( |
Common Stock | Additional Paid-In Capital | Cumulative Distributions in Excess of Earnings | Other Comprehensive Income/(Loss) | Non- controlling Interest | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2020 | $ | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||
Dividends to common stockholders ($ | — | — | ( | — | ( | ( | |||||||||||||||||||||||||||||||||||
Shares issued and amortized under the 2007 Omnibus Incentive Plan, net of tax | — | — | — | ||||||||||||||||||||||||||||||||||||||
Net loss applicable to noncontrolling interest | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Net income applicable to Piedmont | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Balance, March 31, 2021 | $ | $ | $ | ( | $ | ( | $ | $ |
Common Stock | Additional Paid-In Capital | Cumulative Distributions in Excess of Earnings | Other Comprehensive Income/(Loss) | Non- controlling Interest | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2019 | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Dividends to common stockholders ($ | — | — | ( | ( | — | ( | ( | ||||||||||||||||||||||||||||||||||
Shares issued and amortized under the 2007 Omnibus Incentive Plan, net of tax | — | — | — | ||||||||||||||||||||||||||||||||||||||
Net income applicable to noncontrolling interest | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Net income applicable to Piedmont | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Balance, March 31, 2020 | $ | $ | $ | ( | $ | ( | $ | $ |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2021 | 2020 | ||||||||||
Cash Flows from Operating Activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation | |||||||||||
Amortization of debt issuance costs inclusive of settled interest rate swaps | |||||||||||
Other amortization | |||||||||||
General reserve for uncollectible accounts | |||||||||||
Stock compensation expense | |||||||||||
Gain on sale of real estate assets | ( | ||||||||||
Changes in assets and liabilities: | |||||||||||
Increase in tenant and straight-line rent receivables | ( | ( | |||||||||
Decrease in prepaid expenses and other assets | |||||||||||
Decrease in accounts payable and accrued expenses | ( | ( | |||||||||
Increase in deferred income | |||||||||||
Net cash provided by operating activities | |||||||||||
Cash Flows from Investing Activities: | |||||||||||
Acquisition of real estate assets and intangibles | ( | ||||||||||
Capitalized expenditures | ( | ( | |||||||||
Net sales proceeds from wholly-owned properties | ( | ||||||||||
Deferred lease costs paid | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash Flows from Financing Activities: | |||||||||||
Debt issuance and other costs paid | ( | ( | |||||||||
Proceeds from debt | |||||||||||
Repayments of debt | ( | ( | |||||||||
Discount paid due to loan modification | ( | ||||||||||
Value of shares withheld for payment of taxes related to employee stock compensation | ( | ( | |||||||||
Repurchases of common stock as part of announced plan | ( | ||||||||||
Dividends paid and discount on dividend reinvestments | ( | ( | |||||||||
Net cash (used in)/provided by financing activities | ( | ||||||||||
Net increase/(decrease) in cash, cash equivalents, and restricted cash and escrows | ( | ||||||||||
Cash, cash equivalents, and restricted cash and escrows, beginning of period | |||||||||||
Cash, cash equivalents, and restricted cash and escrows, end of period | $ | $ |
Three Months Ended | |||||||||||
March 31, 2021 | March 31, 2020 | ||||||||||
Fixed payments | $ | $ | |||||||||
Variable payments | |||||||||||
Total Rental and Tenant Reimbursement Revenue | $ | $ |
Facility (1) | Stated Rate | Effective Rate (2) | Maturity | Amount Outstanding as of | ||||||||||||||||||||||||||||
March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||
Secured (Fixed) | ||||||||||||||||||||||||||||||||
$ | % | % | 9/1/2021 | $ | $ | |||||||||||||||||||||||||||
Net premium and unamortized debt issuance costs | ||||||||||||||||||||||||||||||||
Subtotal/Weighted Average (4) | % | |||||||||||||||||||||||||||||||
Unsecured (Variable and Fixed) | ||||||||||||||||||||||||||||||||
Amended and Restated $ | LIBOR + | % | 11/30/2021 | |||||||||||||||||||||||||||||
$ | LIBOR + | % | 9/30/2022 | (6) | ||||||||||||||||||||||||||||
$ | % | % | 6/01/2023 | |||||||||||||||||||||||||||||
$ | % | % | 3/15/2024 | |||||||||||||||||||||||||||||
$ | LIBOR + | % | (7) | 3/31/2025 | ||||||||||||||||||||||||||||
$ | % | % | 8/15/2030 | |||||||||||||||||||||||||||||
Discounts and unamortized debt issuance costs | ( | ( | ||||||||||||||||||||||||||||||
Subtotal/Weighted Average (4) | % | |||||||||||||||||||||||||||||||
Total/Weighted Average (4) | % | $ | $ |
Interest Rate Derivatives: | Number of Swap Agreements | Associated Debt Instrument | Total Notional Amount (in millions) | Effective Date | Maturity Date | |||||||||||||||||||||||||||
Interest rate swaps | $ | $ | 3/29/2018 | 3/31/2025 | ||||||||||||||||||||||||||||
Interest rate swaps classified as: | March 31, 2021 | December 31, 2020 | |||||||||
Gross derivative assets | $ | $ | |||||||||
Gross derivative liabilities | ( | ( | |||||||||
Net derivative liability | $ | ( | $ | ( |
Three Months Ended | |||||||||||
Interest Rate Swaps in Cash Flow Hedging Relationships | March 31, 2021 | March 31, 2020 | |||||||||
Amount of gain/(loss) recognized in OCI | $ | $ | ( | ||||||||
Amount of previously recorded gain/(loss) reclassified from OCI into Interest Expense | $ | ( | $ | ||||||||
Total amount of interest expense presented in the consolidated statements of income | $ | ( | $ | ( | |||||||
March 31, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||||
Financial Instrument | Carrying Value | Estimated Fair Value | Level Within Fair Value Hierarchy | Carrying Value | Estimated Fair Value | Level Within Fair Value Hierarchy | |||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Cash and cash equivalents (1) | $ | $ | Level 1 | $ | $ | Level 1 | |||||||||||||||||||||||||||||
Tenant receivables, net (1) | $ | $ | Level 1 | $ | $ | Level 1 | |||||||||||||||||||||||||||||
Notes receivable | $ | $ | Level 2 | $ | $ | Level 2 | |||||||||||||||||||||||||||||
Restricted cash and escrows (1) | $ | $ | Level 1 | $ | $ | Level 1 | |||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||
Accounts payable and accrued expenses (1) | $ | $ | Level 1 | $ | $ | Level 1 | |||||||||||||||||||||||||||||
Interest rate swaps | $ | $ | Level 2 | $ | $ | Level 2 | |||||||||||||||||||||||||||||
Debt, net | $ | $ | Level 2 | $ | $ | Level 2 |
Shares | Weighted-Average Grant Date Fair Value | ||||||||||
Unvested and Potential Stock Awards as of December 31, 2020 | $ | ||||||||||
Deferred Stock Awards Granted | $ | ||||||||||
Increase in Estimated Potential Share Award based on TSR Performance | $ | ||||||||||
Performance Stock Awards Vested | ( | $ | |||||||||
Deferred Stock Awards Vested | ( | $ | |||||||||
Deferred Stock Awards Forfeited | ( | $ | |||||||||
Unvested and Potential Stock Awards as of March 31, 2021 | $ |
Three Months Ended | |||||||||||
March 31, 2021 | March 31, 2020 | ||||||||||
Weighted-Average Grant Date Fair Value per share of Deferred Stock Granted During the Period | $ | $ | |||||||||
Total Grant Date Fair Value of Deferred Stock Vested During the Period | $ | $ | |||||||||
Share-based Liability Awards Paid During the Period (1) | $ | $ |
Date of grant | Type of Award | Net Shares Granted (1) | Grant Date Fair Value | Vesting Schedule | Unvested Shares | ||||||||||||||||||||||||||||||
May 17, 2018 | Deferred Stock Award | $ | Of the shares granted, | ||||||||||||||||||||||||||||||||
May 3, 2019 | Deferred Stock Award | $ | Of the shares granted, | ||||||||||||||||||||||||||||||||
May 3, 2019 | Fiscal Year 2019-2021 Performance Share Program | $ | Shares awarded, if any, will vest immediately upon determination of award in 2022. | (2) | |||||||||||||||||||||||||||||||
February 19, 2020 | Deferred Stock Award | $ | Of the shares granted, | ||||||||||||||||||||||||||||||||
March 19, 2020 | Fiscal Year 2020-2022 Performance Share Program | $ | Shares awarded, if any, will vest immediately upon determination of award in 2023. | (2) | |||||||||||||||||||||||||||||||
May 13, 2020 | Deferred Stock Award-Board of Directors | $ | Of the shares granted, | ||||||||||||||||||||||||||||||||
February 17, 2021 | Deferred Stock Award | $ | Of the shares granted, | ||||||||||||||||||||||||||||||||
February 18, 2021 | Fiscal Year 2021-2023 Performance Share Program | $ | Shares awarded, if any, will vest immediately upon determination of award in 2024. | (2) | |||||||||||||||||||||||||||||||
Total |
Three Months Ended | |||||||||||
March 31, 2021 | March 31, 2020 | ||||||||||
Accrued capital expenditures and deferred lease costs | $ | $ | |||||||||
Change in accrued dividends and discount on dividend reinvestments | $ | ( | $ | ( | |||||||
Change in accrued share repurchases as part of an announced plan | $ | ( | $ | ||||||||
Accrued deferred financing costs | $ | $ | |||||||||
2021 | 2020 | |||||||||||||
Cash and cash equivalents as of January 1, 2021 and 2020, respectively | $ | $ | ||||||||||||
Restricted cash and escrows as of January 1, 2021 and 2020, respectively | ||||||||||||||
Cash, cash equivalents, and restricted cash and escrows, beginning of period, as presented in the accompanying consolidated statement of cash flows | $ | $ | ||||||||||||
Cash and cash equivalents as of March 31, 2021 and 2020, respectively | $ | $ | ||||||||||||
Restricted cash and escrows as of March 31, 2021 and 2020, respectively | ||||||||||||||
Cash, cash equivalents, and restricted cash and escrows, end of period, as presented in the accompanying consolidated statement of cash flows | $ | $ |
Three Months Ended | |||||||||||
March 31, 2021 | March 31, 2020 | ||||||||||
Weighted-average common shares – basic | |||||||||||
Plus: Incremental weighted-average shares from time-vested deferred and performance stock awards | |||||||||||
Weighted-average common shares – diluted | |||||||||||
Three Months Ended | |||||||||||
March 31, 2021 | March 31, 2020 | ||||||||||
Dallas | $ | $ | |||||||||
Atlanta | |||||||||||
Washington, D.C. | |||||||||||
Minneapolis | |||||||||||
Boston | |||||||||||
Orlando | |||||||||||
New York | |||||||||||
Total reportable segments | |||||||||||
Corporate and other | |||||||||||
Total Revenues | $ | $ |
Three Months Ended | |||||||||||
March 31, 2021 | March 31, 2020 | ||||||||||
Dallas | $ | $ | |||||||||
Atlanta | |||||||||||
Washington, D.C. | |||||||||||
Minneapolis | |||||||||||
Boston | |||||||||||
Orlando | |||||||||||
New York | |||||||||||
Total reportable segments | |||||||||||
Corporate and other | |||||||||||
Total NOI | $ | $ |
Three Months Ended | |||||||||||
March 31, 2021 | March 31, 2020 | ||||||||||
Net income applicable to Piedmont | $ | $ | |||||||||
Management fee revenue (1) | ( | ( | |||||||||
Depreciation and amortization | |||||||||||
General and administrative expenses | |||||||||||
Interest expense | |||||||||||
Other (income)/expense | ( | ||||||||||
Gain on sale of real estate assets | ( | ||||||||||
Net (loss)/income applicable to noncontrolling interests | ( | ||||||||||
NOI | $ | $ |
Three Months Ended | |||||||||||
March 31, 2021 | March 31, 2020 | ||||||||||
Capital expenditures for redevelopment/renovations | $ | 11,235 | $ | 8,539 | |||||||
Other capital expenditures, including building and tenant improvements | 14,524 | 23,779 | |||||||||
Total capital expenditures (1) | $ | 25,759 | $ | 32,318 | |||||||
March 31, 2021 | % of Revenues | March 31, 2020 | % of Revenues | Variance | |||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||
Rental and tenant reimbursement revenue | $ | 125.9 | $ | 132.2 | $ | (6.3) | |||||||||||||||||||||||
Property management fee revenue | 0.8 | 0.8 | — | ||||||||||||||||||||||||||
Other property related income | 2.6 | 4.2 | (1.6) | ||||||||||||||||||||||||||
Total revenues | 129.3 | 100 | % | 137.2 | 100 | % | (7.9) | ||||||||||||||||||||||
Expense: | |||||||||||||||||||||||||||||
Property operating costs | 51.4 | 40 | % | 53.2 | 39 | % | (1.8) | ||||||||||||||||||||||
Depreciation | 28.1 | 22 | % | 27.9 | 21 | % | 0.2 | ||||||||||||||||||||||
Amortization | 22.9 | 17 | % | 23.6 | 17 | % | (0.7) | ||||||||||||||||||||||
General and administrative | 7.3 | 6 | % | 8.6 | 6 | % | (1.3) | ||||||||||||||||||||||
109.7 | 113.3 | (3.6) | |||||||||||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||||||||
Interest expense | (12.6) | 10 | % | (15.3) | 11 | % | 2.7 | ||||||||||||||||||||||
Other income | 2.3 | 2 | % | 0.1 | — | % | 2.2 | ||||||||||||||||||||||
Net income | $ | 9.3 | 7 | % | $ | 8.7 | 6 | % | $ | 0.6 | |||||||||||||||||||
Combined Balances of Piedmont OP and Piedmont Office Realty Trust, Inc. as Issuer and Guarantor, respectively | As of March 31, 2021 | As of December 31, 2020 | |||||||||
Due from non-guarantor subsidiary | $ | 900 | $ | 810 | |||||||
Total assets | $ | 350,015 | $ | 347,757 | |||||||
Total liabilities | $ | 1,660,891 | $ | 1,654,009 | |||||||
For the Three Months Ended March 31, 2021 | |||||||||||
Total revenues | $ | 11,206 | |||||||||
Net loss | $ | (11,328) |
Three Months Ended | |||||||||||
March 31, 2021 | March 31, 2020 | ||||||||||
Dallas | $ | 16,877 | $ | 12,490 | |||||||
Atlanta | 14,996 | 14,912 | |||||||||
Washington, D.C. | 8,573 | 10,129 | |||||||||
Minneapolis | 8,155 | 8,699 | |||||||||
Boston | 10,824 | 10,697 | |||||||||
Orlando | 10,350 | 8,976 | |||||||||
New York | 7,296 | 11,114 | |||||||||
Total reportable segments | 77,071 | 77,017 | |||||||||
Corporate and other | 587 | 6,785 | |||||||||
Total NOI | $ | 77,658 | $ | 83,802 |
Three Months Ended | |||||||||||||||||||||||
March 31, 2021 | Per Share(1) | March 31, 2020 | Per Share(1) | ||||||||||||||||||||
GAAP net income applicable to common stock | $ | 9,344 | $ | 0.08 | $ | 8,709 | $ | 0.07 | |||||||||||||||
Depreciation of real estate assets | 27,812 | 0.22 | 27,551 | 0.22 | |||||||||||||||||||
Amortization of lease-related costs | 22,900 | 0.18 | 23,618 | 0.18 | |||||||||||||||||||
Gain on sale of real estate assets | — | — | (3) | — | |||||||||||||||||||
NAREIT Funds From Operations and Core Funds from Operations applicable to common stock | $ | 60,056 | $ | 0.48 | $ | 59,875 | $ | 0.47 | |||||||||||||||
Adjustments: | |||||||||||||||||||||||
Amortization of debt issuance costs, fair market value adjustments on notes payable, and discounts on debt | 654 | 577 | |||||||||||||||||||||
Depreciation of non real estate assets | 282 | 325 | |||||||||||||||||||||
Straight-line effects of lease revenue | (4,103) | (6,785) | |||||||||||||||||||||
Stock-based compensation adjustments | 1,111 | 2,300 | |||||||||||||||||||||
Net effect of amortization of above and below-market in-place lease intangibles | (2,792) | (2,973) | |||||||||||||||||||||
Non-incremental capital expenditures (2) | (17,347) | (34,762) | |||||||||||||||||||||
Adjusted Funds From Operations applicable to common stock | $ | 37,861 | $ | 18,557 | |||||||||||||||||||
Weighted-average shares outstanding – diluted | 124,450 | 126,360 | |||||||||||||||||||||
Cash Basis | Accrual Basis | ||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||
March 31, 2021 | March 31, 2020 | March 31, 2021 | March 31, 2020 | ||||||||||||||||||||
Net income applicable to Piedmont (GAAP basis) | $ | 9,344 | $ | 8,709 | $ | 9,344 | $ | 8,709 | |||||||||||||||
Net (loss)/income applicable to noncontrolling interest | (1) | 2 | (1) | 2 | |||||||||||||||||||
Interest expense | 12,580 | 15,264 | 12,580 | 15,264 | |||||||||||||||||||
Depreciation | 28,094 | 27,876 | 28,094 | 27,876 | |||||||||||||||||||
Amortization | 22,900 | 23,618 | 22,900 | 23,618 | |||||||||||||||||||
Depreciation and amortization attributable to noncontrolling interests | 21 | 21 | 21 | 21 | |||||||||||||||||||
Gain on sale of real estate assets | — | (3) | — | (3) | |||||||||||||||||||
EBITDAre(1) and Core EBITDA(2) | $ | 72,938 | $ | 75,487 | $ | 72,938 | $ | 75,487 | |||||||||||||||
General & administrative expenses | 7,251 | 8,643 | 7,251 | 8,643 | |||||||||||||||||||
Management fee revenue (3) | (390) | (395) | (390) | (395) | |||||||||||||||||||
Other (income)/expense | (2,141) | 67 | (2,141) | 67 | |||||||||||||||||||
Non-cash general reserve for uncollectible accounts | 412 | — | |||||||||||||||||||||
Straight-line rent effects of lease revenue | (4,103) | (6,785) | |||||||||||||||||||||
Straight line effects of lease revenue attributable to noncontrolling interests | 1 | (3) | |||||||||||||||||||||
Amortization of lease-related intangibles | (2,792) | (2,973) | |||||||||||||||||||||
Property NOI | $ | 71,176 | $ | 74,041 | $ | 77,658 | $ | 83,802 | |||||||||||||||
Net operating (income)/loss from: | |||||||||||||||||||||||
Acquisitions (4) | (7,440) | (3,539) | (9,211) | (4,729) | |||||||||||||||||||
Dispositions (5) | 413 | (8,700) | 413 | (9,361) | |||||||||||||||||||
Other investments (6) | 144 | 103 | 200 | 158 | |||||||||||||||||||
Same Store NOI | $ | 64,293 | $ | 61,905 | $ | 69,060 | $ | 69,870 | |||||||||||||||
Change period over period in Same Store NOI | 3.9 | % | N/A | (1.2) | % | N/A |
Exhibit Number | Description of Document | ||||||||||
3.1 | |||||||||||
3.2 | |||||||||||
3.3 | |||||||||||
3.4 | |||||||||||
3.5 | |||||||||||
3.6 | |||||||||||
10.1 | |||||||||||
10.2 | |||||||||||
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101.SCH | Inline XBRL Taxonomy Extension Schema Document | ||||||||||
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101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
PIEDMONT OFFICE REALTY TRUST, INC. | |||||||||||
(Registrant) | |||||||||||
Dated: | April 28, 2021 | By: | /s/ Robert E. Bowers | ||||||||
Robert E. Bowers | |||||||||||
Chief Financial Officer and Executive Vice President | |||||||||||
(Principal Financial Officer and Duly Authorized Officer) |
Performance Level | Peer Group Percentile Ranking | Percentage of Target Amount Payable | ||||||
Maximum or above | 75th percentile or above | 200% | ||||||
Target | Median | 100% | ||||||
Threshold | 25th percentile | 50% | ||||||
Below Threshold | below 25th percentile | 0% |
Absolute TSR for the Performance Cycle | Reduction in Percentage of Target Amount Payable | ||||
-0.01% | 10% | ||||
=< -15.0% | 30% | ||||
The absolute TSR modifier will reduce payouts on a linear basis between -10% and -30%, but in no event shall the resulting payout be reduced to less than the LTIP Award that is payable at the Target Performance Level. |
By: | /s/ C. Brent Smith | |||||||
C. Brent Smith | ||||||||
Principal Executive Officer |
By: | /s/ Robert E. Bowers | |||||||
Robert E. Bowers | ||||||||
Principal Financial Officer |
By: | /s/ C. Brent Smith | |||||||
C. Brent Smith | ||||||||
Chief Executive Officer | ||||||||
April 28, 2021 |
By: | /s/ Robert E. Bowers | |||||||
Robert E. Bowers | ||||||||
Chief Financial Officer | ||||||||
April 28, 2021 |
Consolidated Statements of Comprehensive Income/(Loss) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2021 |
Mar. 31, 2020 |
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Statement of Comprehensive Income [Abstract] | ||
Net income applicable to Piedmont | $ 9,344 | $ 8,709 |
Other comprehensive income/(loss): | ||
Effective portion of gain/(loss) on derivative instruments that are designated and qualify as cash flow hedges (See Note 4) | 1,561 | (21,937) |
Plus/(less): Reclassification of net loss/(gain) included in net income (See Note 4) | 726 | (6) |
Other comprehensive income/(loss) | 2,287 | (21,943) |
Comprehensive income/(loss) applicable to Piedmont | $ 11,631 | $ (13,234) |
Consolidated Statement of Stockholders' Equity (Parenthetical) - $ / shares |
3 Months Ended | |
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Mar. 31, 2021 |
Mar. 31, 2020 |
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Statement of Stockholders' Equity [Abstract] | ||
Dividends to common stockholders per share (in dollars per share) | $ 0.21 | $ 0.21 |
Organization |
3 Months Ended |
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Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Piedmont Office Realty Trust, Inc. (“Piedmont”) (NYSE: PDM) is a Maryland corporation that operates in a manner so as to qualify as a real estate investment trust (“REIT”) for federal income tax purposes and engages in the ownership, management, development, redevelopment, and operation of high-quality, Class A office properties located primarily in select sub-markets within seven major Eastern U.S. office markets, with a majority of its revenue being generated from the Sunbelt. Piedmont was incorporated in 1997 and commenced operations in 1998. Piedmont conducts business through its wholly-owned subsidiary, Piedmont Operating Partnership, L.P. (“Piedmont OP”), a Delaware limited partnership. Piedmont OP owns properties directly, through wholly-owned subsidiaries, and through various joint ventures which it controls. References to Piedmont herein shall include Piedmont and all of its subsidiaries, including Piedmont OP and its subsidiaries and joint ventures. As of March 31, 2021, Piedmont owned 54 in-service office properties and one redevelopment asset in select sub-markets located within seven major U.S. office markets: Dallas, Atlanta, Washington, D.C., Minneapolis, Boston, Orlando, and New York. As of March 31, 2021, Piedmont's 54 in-service office properties comprised approximately 16.4 million square feet (unaudited) of primarily Class A commercial office space and were 86.0% leased.
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Summary of Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The consolidated financial statements of Piedmont have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”), including the instructions to Form 10-Q and Article 10 of Regulation S-X, and do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair presentation of the results for such periods. Results for these interim periods are not necessarily indicative of a full year’s results. Piedmont’s consolidated financial statements include the accounts of Piedmont, Piedmont’s wholly-owned subsidiaries, any variable interest entity ("VIE") of which Piedmont or any of its wholly-owned subsidiaries is considered to have the power to direct the activities of the entity and the obligation to absorb losses/right to receive benefits, or any entity in which Piedmont or any of its wholly-owned subsidiaries owns a controlling interest. In determining whether Piedmont or Piedmont OP has a controlling interest, the following factors, among others, are considered: equity ownership, voting rights, protective rights of investors, and participatory rights of investors. For further information, refer to the financial statements and footnotes included in Piedmont’s Annual Report on Form 10-K for the year ended December 31, 2020. All intercompany balances and transactions have been eliminated upon consolidation. Further, Piedmont has formed special purpose entities to acquire and hold real estate. Each special purpose entity is a separate legal entity. Consequently, the assets of these special purpose entities are not available to all creditors of Piedmont. The assets owned by these special purpose entities are being reported on a consolidated basis with Piedmont’s assets for financial reporting purposes only. Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying consolidated financial statements and notes. The most significant of these estimates include the underlying cash flows and holding periods used in assessing impairment, judgements regarding the recoverability of goodwill, and the assessment of the collectibility of receivables. Future impacts of the COVID-19 pandemic on Piedmont and its tenants may affect these and other estimates used in the preparation of these financial statements. While Piedmont has made, what it believes to be, appropriate accounting estimates based on the facts and circumstances available as of the reporting date, actual results could materially differ from those estimates. Income Taxes Piedmont has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended, and has operated as such, beginning with its taxable year ended December 31, 1998. To qualify as a REIT, Piedmont must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of its annual REIT taxable income. As a REIT, Piedmont is generally not subject to federal income taxes, subject to fulfilling, among other things, its taxable income distribution requirement. Piedmont is subject to certain taxes related to the operations of properties in certain locations, as well as operations conducted by its taxable REIT subsidiary which have been provided for in the financial statements. Operating Leases Piedmont recognized the following fixed and variable lease payments, which together comprised rental and tenant reimbursement revenue in the accompanying consolidated statements of income for the three months ended March 31, 2021 and 2020, respectively, as follows (in thousands):
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt The following table summarizes the terms of Piedmont’s indebtedness outstanding as of March 31, 2021 and December 31, 2020 (in thousands):
(1)Other than the $35 Million Fixed-Rate Loan, all of Piedmont’s outstanding debt as of March 31, 2021 and December 31, 2020 is interest-only until maturity. (2)Effective rate after consideration of settled or in-place interest rate swap agreements, issuance premiums/discounts, and/or fair market value adjustments upon assumption of debt. (3)Collateralized by the 5 Wall Street building in Burlington, Massachusetts. (4)Weighted average is based on contractual balance of outstanding debt and the stated or effectively fixed interest rates as of March 31, 2021. (5)On a periodic basis, Piedmont may select from multiple interest rate options, including the prime rate and various-length LIBOR locks on all or a portion of the principal. All LIBOR selections are subject to an additional spread over the selected rate based on Piedmont’s current credit rating. (6)Piedmont may extend the term for up to additional year (through two available six month extensions to a final extended maturity date of September 29, 2023) provided Piedmont is not then in default and upon payment of extension fees. (7)The facility has a stated variable rate; however, Piedmont has entered into interest rate swap agreements which effectively fix, exclusive of changes to Piedmont's credit rating, $100 million of the principal balance to 3.56% through the maturity date of the loan. For the remaining variable portion of the loan, Piedmont may periodically select from multiple interest rate options, including the prime rate and various-length LIBOR locks on all or a portion of the principal. All LIBOR selections are subject to an additional spread over the selected rate based on Piedmont’s current credit rating. The rate presented is the weighted-average rate for the effectively fixed and variable portions of the debt outstanding as of March 31, 2021 (see Note 4 for more detail). Piedmont made interest payments on all debt facilities, including interest rate swap cash settlements, of approximately $16.5 million and $15.9 million for the three months ended March 31, 2021 and 2020, respectively. Also, Piedmont capitalized interest of approximately $0.8 million and $0.2 million for the three months ended March 31, 2021 and 2020, respectively. As of March 31, 2021, Piedmont believes it was in compliance with all financial covenants associated with its debt instruments. |
Derivative Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | Derivative Instruments Risk Management Objective of Using Derivatives In addition to operational risks which arise in the normal course of business, Piedmont is exposed to economic risks such as interest rate, liquidity, and credit risk. In certain situations, Piedmont has entered into derivative financial instruments such as interest rate swap agreements and other similar agreements to manage interest rate risk exposure arising from current or future variable rate debt transactions. Interest rate swap agreements involve the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Piedmont’s objective in using interest rate derivatives is to add stability to interest expense and to manage its exposure to interest rate movements. Cash Flow Hedges of Interest Rate Risk Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for Piedmont making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The maximum length of time over which Piedmont is hedging its exposure to the variability in future cash flows for forecasted transactions is 48 months. A detail of Piedmont’s interest rate derivatives outstanding as of March 31, 2021 is as follows:
Piedmont presents its interest rate derivatives on its consolidated balance sheets on a gross basis as interest rate swap assets and interest rate swap liabilities. A detail of Piedmont’s interest rate derivatives on a gross and net basis as of March 31, 2021 and December 31, 2020, respectively, is as follows (in thousands):
The gain/(loss) on Piedmont's interest rate derivatives, including previously settled forward swaps, that was recorded in other comprehensive income ("OCI") and the accompanying consolidated statements of income as a component of interest expense for the three months ended March 31, 2021 and 2020, respectively, was as follows (in thousands):
Piedmont estimates that approximately $2.9 million will be reclassified from OCI as an increase in interest expense over the next twelve months. Piedmont recognized no hedge ineffectiveness on its cash flow hedges during the three months ended March 31, 2021 and 2020, respectively. Credit-risk-related Contingent Features Piedmont has agreements with its derivative counterparties that contain a provision whereby if Piedmont defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then Piedmont could also be declared in default on its derivative obligations. If Piedmont were to breach any of the contractual provisions of the derivative contracts, it could be required to settle its liability obligations under the agreements at their termination value of the estimated fair values plus accrued interest, or approximately $7.8 million as of March 31, 2021. Additionally, Piedmont has rights of set-off under certain of its derivative agreements related to potential termination fees and amounts payable under the agreements, if a termination were to occur.
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Fair Value Measurement of Financial Instruments |
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Fair Value Measurement of Financial Instruments | Fair Value Measurement of Financial Instruments Piedmont considers its cash and cash equivalents, tenant receivables, notes receivable, restricted cash and escrows, accounts payable and accrued expenses, interest rate swap agreements, and debt to meet the definition of financial instruments. The following table sets forth the carrying and estimated fair value for each of Piedmont’s financial instruments, as well as its level within the GAAP fair value hierarchy, as of March 31, 2021 and December 31, 2020, respectively (in thousands):
(1)For the periods presented, the carrying value of these financial instruments, net of applicable allowance, approximates estimated fair value due to their short-term maturity. Piedmont's notes receivable were carried at book value as of March 31, 2021, and were issued in conjunction with the sale of properties to an unrelated third-party buyer in October 2020. Piedmont has evaluated the facts and circumstances present at the time of issuance of the notes receivable as compared to those same circumstances as of March 31, 2021 and determined that the book value approximates its estimated fair value. Piedmont's debt was carried at book value as of March 31, 2021 and December 31, 2020; however, Piedmont's estimate of its fair value is disclosed in the table above. Piedmont uses widely accepted valuation techniques including discounted cash flow analysis based on the contractual terms of the debt facilities, including the period to maturity of each instrument, and uses observable market-based inputs for similar debt facilities which have transacted recently in the market. Therefore, the estimated fair values determined are considered to be based on significant other observable inputs (Level 2). Scaling adjustments are made to these inputs to make them applicable to the remaining life of Piedmont's outstanding debt. Piedmont has not changed its valuation technique for estimating the fair value of its debt. Piedmont’s interest rate swap agreements presented above, and as further discussed in Note 4, are classified as “Interest rate swap” liabilities in the accompanying consolidated balance sheets and were carried at estimated fair value as of March 31, 2021 and December 31, 2020. The valuation of these derivative instruments was determined using widely accepted valuation techniques including discounted cash flow analysis based on the contractual terms of the derivatives, including the period to maturity of each instrument, and uses observable market-based inputs, including interest rate curves and implied volatilities. Therefore, the estimated fair values determined are considered to be based on significant other observable inputs (Level 2). In addition, Piedmont considered both its own and the respective counterparties’ risk of nonperformance in determining the estimated fair value of its derivative financial instruments by estimating the current and potential future exposure under the derivative financial instruments that both Piedmont and the counterparties were at risk for as of the valuation date. The credit risk of Piedmont and its counterparties was factored into the calculation of the estimated fair value of the interest rate swaps; however, as of March 31, 2021 and December 31, 2020, this credit valuation adjustment did not comprise a material portion of the estimated fair value. Therefore, Piedmont believes that any unobservable inputs used to determine the estimated fair values of its derivative financial instruments are not significant to the fair value measurements in their entirety, and does not consider any of its derivative financial instruments to be Level 3 liabilities.
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Commitments and Contingencies |
3 Months Ended |
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Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments Under Existing Lease Agreements As a recurring part of its business, Piedmont is typically required under its executed lease agreements to fund tenant improvements, leasing commissions, and building improvements. In addition, certain agreements contain provisions that require Piedmont to issue corporate or property guarantees to provide funding for capital improvements or other financial obligations. As of March 31, 2021, Piedmont had one individually significant unrecorded tenant allowance commitment of approximately $37.2 million for the approximately 20-year, 520,000 square foot renewal and expansion on behalf of Piedmont's largest tenant, the State of New York at the 60 Broad Street building in New York City. This commitment will be accrued and capitalized as the related expenditures are incurred. Contingencies Related to Tenant Audits/Disputes Certain lease agreements include provisions that grant tenants the right to engage independent auditors to audit their annual operating expense reconciliations. Such audits may result in different interpretations of language in the lease agreements from that made by Piedmont, which could result in requests for refunds of previously recognized tenant reimbursement revenues, resulting in financial loss to Piedmont. There were no reductions in rental and reimbursement revenues related to such tenant audits/disputes during the three months ended March 31, 2021 or 2020. Contingencies Related to the COVID-19 Pandemic As a result of the COVID-19 pandemic, Piedmont has entered into approximately 70 agreements with various tenants that primarily deferred rent payments until either the fourth quarter of 2020 or into 2021 with interest. As of March 31, 2021, approximately $3.3 million of such deferrals plus interest remains to be paid to Piedmont. While the long-term impacts of the COVID-19 pandemic remain uncertain, a prolonged economic downturn or recession resulting from the pandemic could adversely affect certain of Piedmont's tenants which could, in turn, adversely impact Piedmont's business, financial condition and results of operations. Piedmont will continue to work closely with our tenants on a case-by-case basis to address any remaining concerns, continuing to seek solutions that address immediate cash flow interruptions while maintaining long term lease obligations.
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Stock Based Compensation |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Based Compensation | Stock Based Compensation The Compensation Committee of Piedmont's Board of Directors has annually granted deferred stock award units to all of Piedmont's employees which are generally based upon Piedmont's financial performance of the previous year measured against board approved operating goals and objectives, executed leasing goals, and certain other financial and operational metrics. Annually granted deferred stock award units to independent directors are for services rendered. Most employee awards vest ratably over a multi-year period and independent director awards vest over one year. Certain management employees' long-term equity incentive programs are split equally between the deferred stock award units and a multi-year performance share program whereby actual awards are contingent upon Piedmont's total stockholder return ("TSR") performance relative to the TSR of a peer group of office REITs. The target incentives for these certain employees, as well as the peer group to be used for comparative purposes, are predetermined by the Board of Directors, advised by an outside compensation consultant. Any shares earned are awarded at the end of the multi-year performance period and vest upon award. The grant date fair value of the multi-year performance share awards are estimated using a Monte Carlo valuation method. A rollforward of Piedmont's equity based award activity for the three months ended March 31, 2021 is as follows:
The following table provides additional information regarding stock award activity during the three months ended March 31, 2021 and 2020, respectively (in thousands, except per share amounts):
(1)Amounts reflect the issuance during the three months ended March 31, 2021 and 2020, respectively, of performance share awards to certain management employees related to the multi-year 2018-20 and 2017-19 Performance Share Plans. A detail of Piedmont’s outstanding stock awards and programs as of March 31, 2021 is as follows:
(1)Amounts reflect the total original grant to employees and independent directors, net of shares surrendered upon vesting to satisfy required minimum tax withholding obligations through March 31, 2021. (2)Estimated based on Piedmont's cumulative TSR for the respective performance period through March 31, 2021. Share estimates are subject to change in future periods based upon Piedmont's relative performance compared to its peer group of office REITs' TSR. During the three months ended March 31, 2021 and 2020, Piedmont recognized approximately $3.3 million and $3.9 million, respectively, of compensation expense related to stock awards of which $2.0 million and $2.7 million, respectively, is related to the amortization of unvested and potential stock awards, as well as the fair value adjustment for liability awards. During the three months ended March 31, 2021, a net total of 189,582 shares were issued to employees. As of March 31, 2021, approximately $11.9 million of unrecognized compensation cost related to unvested and potential stock awards remained, which Piedmont will record in its consolidated statements of income over a weighted-average vesting period of approximately one year.
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Supplemental Disclosures for the Statement of Consolidated Cash Flows |
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Supplemental Cash Flow Elements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Disclosures for the Statement of Consolidated Cash Flows | Supplemental Disclosures for the Statement of Consolidated Cash Flows Certain non-cash investing and financing activities for the three months ended March 31, 2021 and 2020, (in thousands) are outlined below:
The following table provides a reconciliation of cash, cash equivalents, and restricted cash and escrows as presented in the accompanying consolidated statements of cash flows for the three months ended March 31, 2021 and 2020, to the consolidated balance sheets for the respective period (in thousands):
Amounts in restricted cash and escrows typically represent: escrow accounts required for future property repairs; escrow accounts for the payment of real estate taxes as required under certain of Piedmont's debt agreements; earnest money deposited by a buyer to secure the purchase of one of Piedmont's properties; or security or utility deposits held for tenants as a condition of their lease agreement.
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share There are no adjustments to “Net income applicable to Piedmont” for the diluted earnings per share computations. Net income per share-basic is calculated as net income available to common stockholders divided by the weighted average number of common shares outstanding during the period. Net income per share-diluted is calculated as net income available to common stockholders divided by the diluted weighted average number of common shares outstanding during the period, including unvested deferred stock awards. Diluted weighted average number of common shares reflects the potential dilution under the treasury stock method that would occur if the remaining unvested and potential stock awards vested and resulted in additional common shares outstanding. Unvested and potential stock awards which are determined to be anti-dilutive are not included in the calculation of diluted weighted average common shares. For the three months ended March 31, 2021 and 2020, Piedmont calculated and excluded weighted average outstanding anti-dilutive shares of 182,745 and 67,915, respectively. The following table reconciles the denominator for the basic and diluted earnings per share computations shown on the consolidated statements of income for the three months ended March 31, 2021 and 2020, respectively (in thousands):
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Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information Piedmont's President and Chief Executive Officer has been identified as Piedmont's chief operating decision maker ("CODM"), as defined by GAAP. The CODM evaluates Piedmont's portfolio and assesses the ongoing operations and performance of its properties utilizing the following geographic segments: Dallas, Atlanta, Washington, D.C., Minneapolis, Boston, Orlando, and New York. These operating segments are also Piedmont’s reportable segments. As of March 31, 2021, Piedmont also owned two properties in Houston and one property in Chicago that do not meet the definition of an operating or reportable segment as the CODM does not regularly review these properties for purposes of allocating resources or assessing performance. Further, Piedmont does not maintain a significant presence or anticipate further investment in these markets. These three properties are included in "Corporate and other" below. During the periods presented, there have been no material inter segment transactions. The accounting policies of the reportable segments are the same as Piedmont's accounting policies. Accrual-based net operating income ("NOI") by geographic segment is the primary performance measure reviewed by Piedmont's CODM to assess operating performance and consists only of revenues and expenses directly related to real estate rental operations. NOI is calculated by deducting property operating costs from lease revenues and other property related income. NOI reflects property acquisitions and dispositions, occupancy levels, rental rate increases or decreases, and the recoverability of operating expenses. Piedmont's calculation of NOI may not be directly comparable to similarly titled measures calculated by other REITs. Asset value information and capital expenditures by segment are not reported because the CODM does not use these measures to assess performance. The following table presents accrual-based lease revenue and other property related income included in NOI by geographic reportable segment (in thousands):
The following table presents NOI by geographic reportable segment (in thousands):
A reconciliation of Net income applicable to Piedmont to NOI is presented below (in thousands):
(1)Presented net of related operating expenses incurred to earn such management fee revenue. Such operating expenses are a component of property operating costs in the accompanying consolidated statements of income.
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Subsequent Events |
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Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Second Quarter Dividend Declaration On April 28, 2021, the Board of Directors of Piedmont declared a dividend for the second quarter of 2021 in the amount of $0.21 per common share outstanding to stockholders of record as of the close of business on May 28, 2021. Such dividend will be paid on June 18, 2021.
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Summary of Significant Accounting Policies (Policies) |
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Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The consolidated financial statements of Piedmont have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”), including the instructions to Form 10-Q and Article 10 of Regulation S-X, and do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair presentation of the results for such periods. Results for these interim periods are not necessarily indicative of a full year’s results. |
Principles of Consolidation | Piedmont’s consolidated financial statements include the accounts of Piedmont, Piedmont’s wholly-owned subsidiaries, any variable interest entity ("VIE") of which Piedmont or any of its wholly-owned subsidiaries is considered to have the power to direct the activities of the entity and the obligation to absorb losses/right to receive benefits, or any entity in which Piedmont or any of its wholly-owned subsidiaries owns a controlling interest. In determining whether Piedmont or Piedmont OP has a controlling interest, the following factors, among others, are considered: equity ownership, voting rights, protective rights of investors, and participatory rights of investors. For further information, refer to the financial statements and footnotes included in Piedmont’s Annual Report on Form 10-K for the year ended December 31, 2020. All intercompany balances and transactions have been eliminated upon consolidation. Further, Piedmont has formed special purpose entities to acquire and hold real estate. Each special purpose entity is a separate legal entity. Consequently, the assets of these special purpose entities are not available to all creditors of Piedmont. The assets owned by these special purpose entities are being reported on a consolidated basis with Piedmont’s assets for financial reporting purposes only.
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Use of Estimates | Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying consolidated financial statements and notes. The most significant of these estimates include the underlying cash flows and holding periods used in assessing impairment, judgements regarding the recoverability of goodwill, and the assessment of the collectibility of receivables. Future impacts of the COVID-19 pandemic on Piedmont and its tenants may affect these and other estimates used in the preparation of these financial statements. While Piedmont has made, what it believes to be, appropriate accounting estimates based on the facts and circumstances available as of the reporting date, actual results could materially differ from those estimates.
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Income Taxes | Income Taxes Piedmont has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended, and has operated as such, beginning with its taxable year ended December 31, 1998. To qualify as a REIT, Piedmont must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of its annual REIT taxable income. As a REIT, Piedmont is generally not subject to federal income taxes, subject to fulfilling, among other things, its taxable income distribution requirement. Piedmont is subject to certain taxes related to the operations of properties in certain locations, as well as operations conducted by its taxable REIT subsidiary which have been provided for in the financial statements.
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Risk Management Objective of Using Derivatives | Risk Management Objective of Using Derivatives In addition to operational risks which arise in the normal course of business, Piedmont is exposed to economic risks such as interest rate, liquidity, and credit risk. In certain situations, Piedmont has entered into derivative financial instruments such as interest rate swap agreements and other similar agreements to manage interest rate risk exposure arising from current or future variable rate debt transactions. Interest rate swap agreements involve the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Piedmont’s objective in using interest rate derivatives is to add stability to interest expense and to manage its exposure to interest rate movements.
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Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed and Variable Lease Revenue | Piedmont recognized the following fixed and variable lease payments, which together comprised rental and tenant reimbursement revenue in the accompanying consolidated statements of income for the three months ended March 31, 2021 and 2020, respectively, as follows (in thousands):
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Debt (Tables) |
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Schedule of Debt | The following table summarizes the terms of Piedmont’s indebtedness outstanding as of March 31, 2021 and December 31, 2020 (in thousands):
(1)Other than the $35 Million Fixed-Rate Loan, all of Piedmont’s outstanding debt as of March 31, 2021 and December 31, 2020 is interest-only until maturity. (2)Effective rate after consideration of settled or in-place interest rate swap agreements, issuance premiums/discounts, and/or fair market value adjustments upon assumption of debt. (3)Collateralized by the 5 Wall Street building in Burlington, Massachusetts. (4)Weighted average is based on contractual balance of outstanding debt and the stated or effectively fixed interest rates as of March 31, 2021. (5)On a periodic basis, Piedmont may select from multiple interest rate options, including the prime rate and various-length LIBOR locks on all or a portion of the principal. All LIBOR selections are subject to an additional spread over the selected rate based on Piedmont’s current credit rating. (6)Piedmont may extend the term for up to additional year (through two available six month extensions to a final extended maturity date of September 29, 2023) provided Piedmont is not then in default and upon payment of extension fees. (7)The facility has a stated variable rate; however, Piedmont has entered into interest rate swap agreements which effectively fix, exclusive of changes to Piedmont's credit rating, $100 million of the principal balance to 3.56% through the maturity date of the loan. For the remaining variable portion of the loan, Piedmont may periodically select from multiple interest rate options, including the prime rate and various-length LIBOR locks on all or a portion of the principal. All LIBOR selections are subject to an additional spread over the selected rate based on Piedmont’s current credit rating. The rate presented is the weighted-average rate for the effectively fixed and variable portions of the debt outstanding as of March 31, 2021 (see Note 4 for more detail).
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Derivative Instruments (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions | A detail of Piedmont’s interest rate derivatives outstanding as of March 31, 2021 is as follows:
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Schedule of Interest Rate Derivatives | A detail of Piedmont’s interest rate derivatives on a gross and net basis as of March 31, 2021 and December 31, 2020, respectively, is as follows (in thousands):
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Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The gain/(loss) on Piedmont's interest rate derivatives, including previously settled forward swaps, that was recorded in other comprehensive income ("OCI") and the accompanying consolidated statements of income as a component of interest expense for the three months ended March 31, 2021 and 2020, respectively, was as follows (in thousands):
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Fair Value Measurement of Financial Instruments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, by Balance Sheet Grouping | The following table sets forth the carrying and estimated fair value for each of Piedmont’s financial instruments, as well as its level within the GAAP fair value hierarchy, as of March 31, 2021 and December 31, 2020, respectively (in thousands):
(1)For the periods presented, the carrying value of these financial instruments, net of applicable allowance, approximates estimated fair value due to their short-term maturity.
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Stock Based Compensation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Nonvested Share Activity | A rollforward of Piedmont's equity based award activity for the three months ended March 31, 2021 is as follows:
The following table provides additional information regarding stock award activity during the three months ended March 31, 2021 and 2020, respectively (in thousands, except per share amounts):
(1)Amounts reflect the issuance during the three months ended March 31, 2021 and 2020, respectively, of performance share awards to certain management employees related to the multi-year 2018-20 and 2017-19 Performance Share Plans.
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Schedule of Outstanding Employee Stock Awards | A detail of Piedmont’s outstanding stock awards and programs as of March 31, 2021 is as follows:
(1)Amounts reflect the total original grant to employees and independent directors, net of shares surrendered upon vesting to satisfy required minimum tax withholding obligations through March 31, 2021. (2)Estimated based on Piedmont's cumulative TSR for the respective performance period through March 31, 2021. Share estimates are subject to change in future periods based upon Piedmont's relative performance compared to its peer group of office REITs' TSR.
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Supplemental Disclosures for the Statement of Consolidated Cash Flows (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Supplemental Cash Flow Elements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash Flow, Supplemental Disclosures | Certain non-cash investing and financing activities for the three months ended March 31, 2021 and 2020, (in thousands) are outlined below:
The following table provides a reconciliation of cash, cash equivalents, and restricted cash and escrows as presented in the accompanying consolidated statements of cash flows for the three months ended March 31, 2021 and 2020, to the consolidated balance sheets for the respective period (in thousands):
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Earnings Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Weighted Average Number of Shares | The following table reconciles the denominator for the basic and diluted earnings per share computations shown on the consolidated statements of income for the three months ended March 31, 2021 and 2020, respectively (in thousands):
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Segment Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenue and Net Operating Income, by Segment | The following table presents accrual-based lease revenue and other property related income included in NOI by geographic reportable segment (in thousands):
The following table presents NOI by geographic reportable segment (in thousands):
A reconciliation of Net income applicable to Piedmont to NOI is presented below (in thousands):
(1)Presented net of related operating expenses incurred to earn such management fee revenue. Such operating expenses are a component of property operating costs in the accompanying consolidated statements of income.
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Organization (Details) ft² in Millions |
Mar. 31, 2021
ft²
property
|
---|---|
Segment Reporting, Other Significant Reconciling Item [Line Items] | |
Number of major U.S. office markets | 7 |
Number of real estate properties | 54 |
Area of real estate property (in sq ft) | ft² | 16.4 |
Percentage leased | 86.00% |
Redevelopment Asset | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |
Number of real estate properties | 1 |
Summary of Significant Accounting Policies - Schedule of Fixed and Variable Lease Payments (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Accounting Policies [Abstract] | ||
Fixed payments | $ 105,170 | $ 111,496 |
Variable payments | 20,742 | 20,658 |
Total Rental and Tenant Reimbursement Revenue | $ 125,912 | $ 132,154 |
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Accounting Policies [Abstract] | ||
Operating lease costs | $ 20 | $ 20 |
Weighted-average lease term of right-of-use assets | 2 years | |
Right of use assets weighted-average discount rate | 1.60% |
Debt - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Debt Disclosure [Abstract] | ||
Interest paid | $ 16.5 | $ 15.9 |
Interest costs capitalized | $ 0.8 | $ 0.2 |
Derivative Instruments - Narrative (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2021
USD ($)
| |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Maximum period of extension term | 48 months |
Loss to be reclassified over the next twelve months | $ 2.9 |
Assets needed for immediate settlement, aggregate fair value | $ 7.8 |
Derivative Instruments - Schedule of Notional Amounts of Outstanding Derivative Positions (Details) - $250 Million Unsecured 2018 Term Loan |
Mar. 31, 2021
USD ($)
contract
|
---|---|
Interest rate swaps | |
Derivative [Line Items] | |
Number of swap agreements | contract | 2 |
Notional amount of interest rate swap agreements | $ 100,000,000 |
Unsecured Debt | |
Derivative [Line Items] | |
Face amount of debt instrument | 250,000,000 |
Unsecured Debt | Interest rate swaps | |
Derivative [Line Items] | |
Face amount of debt instrument | $ 250,000,000 |
Derivative Instruments - Schedule of Interest Rate Derivatives (Details) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross derivative assets | $ 0 | $ 0 |
Gross derivative liabilities | (7,654) | (9,834) |
Net derivative liability | $ (7,654) | $ (9,834) |
Derivative Instruments - Effect on other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Derivative [Line Items] | ||
Amount of gain/(loss) recognized in OCI | $ 1,561 | $ (21,937) |
Total amount of interest expense presented in the consolidated statements of income | (12,580) | (15,264) |
Interest rate swaps | ||
Derivative [Line Items] | ||
Amount of gain/(loss) recognized in OCI | 1,561 | (21,937) |
Amount of previously recorded gain/(loss) reclassified from OCI into Interest Expense | (726) | 6 |
Total amount of interest expense presented in the consolidated statements of income | $ (12,580) | $ (15,264) |
Commitments and Contingencies (Details) ft² in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021
USD ($)
ft²
Joint_Venture
tenant
|
Mar. 31, 2020
USD ($)
|
|
Loss Contingencies [Line Items] | ||
Number of unrecorded tenant allowance commitments | Joint_Venture | 1 | |
Unrecorded tenant allowance commitment | $ 37,200,000 | |
Unrecorded tenant allowance renewal term | 20 years | |
Unrecorded tenant allowance expansion area (in sq. ft) | ft² | 520 | |
Contingencies Related to COVID-19 Pandemic | ||
Loss Contingencies [Line Items] | ||
Number of tenants with lease modification agreements | tenant | 70 | |
Revenue deferred due to lease modification agreements | $ 3,300,000 | |
Collectibility of Tenant Reimbursements | ||
Loss Contingencies [Line Items] | ||
Reductions in reimbursement revenues | $ 0 | $ 0 |
Stock Based Compensation - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense related to stock awards | $ 3.3 | $ 3.9 |
Amortization of unvested shares | $ 2.0 | $ 2.7 |
Total shares issued to employees, directors, and officers (in shares) | 189,582 | |
Unrecognized compensation cost related to nonvested | $ 11.9 | |
Weighted Average | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost related to nonvested, weighted-average vesting period | 1 year | |
Independent Director Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 1 year |
Stock Based Compensation - Additional Information Regarding Stock Award Activity (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Deferred Stock Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-Average Grant Date Fair Value per share of Deferred Stock Granted During the Period (in dollars per share) | $ 17.15 | $ 24.40 |
Total Grant Date Fair Value of Deferred Stock Vested During the Period | $ 2,452 | $ 1,216 |
Performance Share Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Liability Awards Paid During the Period | $ 3,610 | $ 4,116 |
Supplemental Disclosures for the Statement of Consolidated Cash Flows (Details) - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Supplemental Cash Flow Elements [Abstract] | ||||
Accrued capital expenditures and deferred lease costs | $ 19,974 | $ 16,408 | ||
Change in accrued dividends and discount on dividend reinvestments | (25,683) | (26,427) | ||
Change in accrued share repurchases as part of an announced plan | (686) | 0 | ||
Accrued deferred financing costs | 5 | 76 | ||
Cash and cash equivalents | 10,689 | 7,920 | $ 7,331 | $ 13,545 |
Restricted cash and escrows | 1,741 | 1,758 | 1,883 | 1,841 |
Cash, cash equivalents, and restricted cash and escrows, beginning of period, as presented in the accompanying consolidated statement of cash flows | $ 12,430 | $ 9,678 | $ 9,214 | $ 15,386 |
Earnings Per Share (Details) - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Earnings Per Share [Abstract] | ||
Anti-dilutive shares excluded (in shares) | 182,745 | 67,915 |
Weighted-average common shares – basic (in shares) | 123,945,972 | 125,862,086 |
Plus: Incremental weighted-average shares from time-vested deferred and performance stock awards (in shares) | 504,000 | 498,000 |
Weighted-average common shares – diluted (in shares) | 124,449,731 | 126,360,003 |
Segment Reporting - Reconciliation of GAAP Net Income to NOI (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Segment Reporting [Abstract] | ||
Net income applicable to Piedmont | $ 9,344 | $ 8,709 |
Management fee revenue | (390) | (395) |
Depreciation and amortization | 51,015 | 51,515 |
General and administrative | 7,251 | 8,643 |
Interest expense | 12,580 | 15,264 |
Other (income)/expense | (2,141) | 67 |
Gain on sale of real estate assets | 0 | (3) |
Net (loss)/income applicable to noncontrolling interests | (1) | 2 |
NOI | $ 77,658 | $ 83,802 |
Subsequent Events (Details) |
Apr. 28, 2021
$ / shares
|
---|---|
Subsequent Event | |
Subsequent Event [Line Items] | |
Common stock dividends (in dollars per share) | $ 0.21 |
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