8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  April 28, 2021

Piedmont Office Realty Trust, Inc.

(Exact name of registrant as specified in its charter)

Commission File Number:  001-34626

Maryland	58-2328421
(State or other jurisdiction of	(IRS Employer
incorporation)	Identification No.)

5565 Glenridge Connector Ste. 450

Atlanta, Georgia 30342

(Address of principal executive offices, including zip code)

(770) 418-8800

(Registrant's telephone number, including area code)

Not applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, $0.01 par value	PDM	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.o

Item 2.02    Results of Operations and Financial Condition.

On April 28, 2021, Piedmont Office Realty Trust, Inc. (the "Registrant") issued a press release announcing its financial results for the first quarter 2021, and published supplemental information for the first quarter 2021 to its website. The press release and the supplemental information are attached hereto as Exhibit 99.1 and 99.2, respectively, and are incorporated herein by reference. Pursuant to the rules and regulations of the Securities and Exchange Commission, such exhibits and the information set forth therein are deemed to have been furnished and shall not be deemed to be “filed” under the Securities Exchange Act of 1934.

Item 9.01    Financial Statements and Exhibits.

(d) Exhibits:

Exhibit No.	Description
99.1	Press release dated April 28, 2021.
99.2	Piedmont Office Realty Trust, Inc. Quarterly Supplemental Information for the First Quarter 2021.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.

			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

EX-99.1

EXHIBIT 99.1

Piedmont Office Realty Trust Reports First Quarter 2021 Results

ATLANTA, April 28, 2021--Piedmont Office Realty Trust, Inc. ("Piedmont" or the "Company") (NYSE:PDM), an owner of Class A office properties located primarily in seven major Eastern U.S. markets with a majority of its revenue being generated from the Sunbelt, today announced its results for the quarter ended March 31, 2021.

Highlights for the Quarter Ended March 31, 2021:

Financial Results:

•The Company reported net income applicable to common stockholders of $9.3 million, or $0.08 per diluted share, for the quarter ended March 31, 2021, a 7.3% increase as compared to $8.7 million, or $0.07 per diluted share, for the quarter ended March 31, 2020.

•Piedmont reported Core Funds From Operations ("Core FFO") of $0.48 per diluted share for the quarter ended March 31, 2021, as compared to $0.47 per diluted share for the quarter ended March 31, 2020.

•Piedmont reported a 3.9% increase and a 1.2% decrease in Same Store NOI-Cash Basis and Same Store NOI-Accrual Basis, respectively, for the quarter ended March 31, 2021 as compared to the quarter ended March 31, 2020;

•The Company collected over 99% of billed tenant receivables near pre-COVID levels for the quarter ended March 31, 2021.

Leasing:

•The Company completed approximately 678,000 square feet of leasing, including approximately 154,000 square feet of new tenant leasing.

•Piedmont reported a 7.0% roll up in accrual rents on leases executed during the quarter ended March 31, 2021 for space vacant one year or less, and a 2.8% roll down on cash rents, a result primarily driven by one large, long-term renewal. Excluding the one large renewal, cash and accrual rents for the remainder of the activity rolled up 8.0% and 10.1%, respectively.

Capital Markets:

•With the completion of the long-term renewal of Raytheon Company's 440,000 square foot lease comprising the entirety of 225 & 235 Presidential Way in Woburn, MA, the Company began marketing these 100% leased, single-tenant assets for sale during the first quarter of 2021.

Balance Sheet:

•The Company's average net debt to Core EBITDA ratio as of March 31, 2021 decreased to 5.6 x.

•The Company's Debt-to-Gross Assets ratio was 34.9% as of March 31, 2021.

ESG:

•Piedmont was named a 2021 ENERGY STAR Partner of the Year.

•Piedmont's five Atlanta Galleria properties were the first in Atlanta to be awarded the WELL Health-Safety Rating by the International WELL Building Institute.

•The Company implemented the Piedmont Scholars Program at Morehouse University in Atlanta and Howard University in Washington, D.C.

Commenting on first quarter results, Brent Smith, President and Chief Executive Officer, said, "We are pleased with both our overall financial and operational results and, in particular, our leasing activity for the first quarter. While the successful long-term lease extension of one of our largest tenants, Raytheon, was certainly the standout in terms of leases executed during the first quarter, we are encouraged by the breadth of activity that we are experiencing across the portfolio. We were able to execute almost as many new leases during the first quarter of 2021 as we did during the last three quarters of 2020 combined. Further, we continue to have good activity in our leasing pipeline and anticipate continued momentum into the second quarter. I'm also very pleased with our continued industry-leading progress towards our environmental and diversity and inclusion goals, including earning the Energy Star Partner of the Year designation for the first time and establishing the Piedmont Scholars Program at Morehouse and Howard Universities."

Results for the Quarter ended March 31, 2021

Piedmont recognized net income applicable to common stockholders for the three months ended March 31, 2021 of $9.3 million, or $0.08 per diluted share, a 7.3% increase as compared to $8.7 million, or $0.07 per diluted share, for the three months ended March 31, 2020.

Funds From Operations ("FFO") and Core FFO, were both $0.48 per diluted share for the three months ended March 31, 2021 as compared to $0.47 for the three months ended March 31, 2020.

Total revenues were $129.3 million for the three months ended March 31, 2021, compared to $137.2 million for the three months ended March 31, 2020 with the first quarter of 2021 primarily reflecting the impact of net 2020 transactional activity, as well as lower overall portfolio occupancy and decreased transient parking revenue as compared to the first quarter of 2020.

Property operating costs were $51.4 million for the three months ended March 31, 2021, as compared with $53.2 million for the three months ended March 31, 2020, reflecting the impact of net 2020 transactional activity and lower janitorial and other property operating costs as a result of reduced physical utilization across our portfolio as a result of the COVID-19 pandemic.

General and administrative expense was $7.3 million for the first quarter of 2021 as compared to $8.6 million for the same period in 2020, with the three months ended March 31, 2021 primarily reflecting reduced accruals for potential performance based compensation.

Leasing Update

During the three months ended March 31, 2021, Piedmont completed approximately 678,000 square feet of leasing across its portfolio, including approximately 154,000 square feet of new tenant leasing, with both total and new leasing square footage exceeding first quarter of 2020's leasing results. The largest lease completed during the first quarter was Raytheon Company's renewal of its 440,000 square foot lease comprising the entirety of 225 & 235 Presidential Way in Woburn, MA through 2031. Because of the long-term renewal of these 100% leased, single-tenant properties, the Company began marketing these assets for sale during the first quarter. Other significant leasing highlights during the quarter included the following:

•In Boston:Ascend Learning, LLC signed a new lease for approximately 53,000 square feet through 2033 at 25 Burlington Mall Road.

•In Washington, D.C.:Industrious signed a new lease for approximately 40,000 square feet through 2031 at 3100 Clarendon Boulevard and the Council for Advancement and Support of Education signed a new lease totaling approximately 15,000 square feet through 2033 at 1201 Eye Street.

Leases executed during the first quarter of 2021 for recently occupied space reflected a 2.8% roll down and 7.0% roll up in cash and accrual rents, respectively. Excluding the large Raytheon renewal, cash and accrual rents for the remainder of the activity rolled up 8.0% and 10.1%, respectively. As of March 31, 2021, the Company's reported leased percentage and weighted average remaining lease term were approximately 86% and 6.0 years, respectively.

Same Store Net Operating Income ("Same Store NOI") increased 3.9% and decreased 1.2% on a cash and accrual basis, respectively, for the quarter ended March 31, 2021 as compared to the quarter ended March 31, 2020. The increase in cash basis Same Store NOI was primarily attributable to the burn off of significant abatements at 1155 Perimeter Center West in Atlanta and Arlington Gateway in Washington, D.C., along with a higher amount of termination income in 2021 primarily associated with the WeWork termination in Orlando, partially offset by a reduction in transient parking revenue as a result of the COVID-19 pandemic and decreased portfolio occupancy during the three months ended March 31, 2021 when compared to the same period in 2020. The decrease in accrual basis Same Store NOI was primarily attributable to a reduction in transient parking revenue as a result of the COVID-19 pandemic and decreased portfolio occupancy during the three months ended March 31, 2021 when compared to the same period in 2020. Other than the City of New York's 313,000 square foot lease that is currently in holdover status at 60 Broad Street in New York, the Company has no scheduled lease expirations greater than 1% of annualized lease revenue during the eighteen month period following March 31, 2021. After the end of the quarter, the Company signed an interim 5-year lease extension for the renewal of substantially all of the City of New York's leased square footage, which is pending final City approvals; a discussion for a longer, 20-year extension is ongoing. As of March 31, 2021, the Company had almost one million square feet of executed leases for vacant space yet to commence or under rental abatement.

Further details outlining Piedmont's largest upcoming lease commencements and expirations, the status of certain major leasing activity and a schedule of the largest lease abatements can be found in the Company's quarterly supplemental information package available at www.piedmontreit.com.

ESG Initiatives

Piedmont was the only office REIT headquartered in the Southeast recently recognized as a 2021 ENERGY STAR Partner of the Year by the U.S. Environmental Protection Agency and the U.S. Department of Energy. Each year, the ENERGY STAR program honors a group of businesses and organizations that have made outstanding contributions to protecting the environment through superior energy achievements. ENERGY STAR Award Winners lead their industries in the production, sale, and adoption of energy-efficient products, services, and strategies. Approximately 74% of the Company's portfolio has earned ENERGY STAR status.

Piedmont's five buildings located in The Atlanta Galleria were the first properties in Atlanta to be awarded the WELL Health-Safety Rating through the International WELL Building Institute (IWBI). The WELL Health-Safety Rating is an evidence-based, third-party verified rating for all new and existing building and space types focusing on operational policies, maintenance protocols, stakeholder

engagement and emergency plans to address a post-COVID-19 environment now and into the future. The Company is actively working to expand the WELL program to a number of its other properties.

Piedmont has recently partnered with Morehouse College in Atlanta, GA and Howard University in Washington, D.C. to introduce the Piedmont Office Realty Trust Scholarship Program. The program provides scholastic support to rising sophomore students seeking a degree in economics, finance, accounting, engineering, or real estate with a renewable scholarship for three years (for the Piedmont Scholars’ Sophomore, Junior and Senior years). Along with access to an executive "shadowing" program, the scholarship also offers each student the opportunity to intern with Piedmont, acquire a firsthand experience in commercial real estate, and participate in a board level mentoring program.

For further details on all of our ESG initiatives, please refer to the ESG tab of our website: www.piedmontreit.com.

Second Quarter 2021 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 share on its common stock to stockholders of record as of the close of business on May 28, 2021, payable on June 18, 2021.

Guidance for 2021

The following financial guidance for calendar year 2021 remains unchanged and is based upon management's assumptions, estimates and expectations at this time. Our projections for 2021 include the assumption of a gradual ramping up of business over the year with a return to a more typical state of operations during the second half of 2021. This financial guidance does not include the effects of any potential acquisition or disposition activity that may be completed during the year.

(in millions, except per share data)	Low	High
Net Income	$34	$38
Add:
Depreciation	115	120
Amortization	82	86
NAREIT FFO and Core FFO applicable to common stock	$231	$244
NAREIT FFO and Core FFO per diluted share	$1.86	$1.96

The above financial guidance is based on information available to management as of the date of this release and does not include the effects of any potential acquisition or disposition activity that may be completed during the year. These estimates reflect management's view of current market conditions and incorporate certain economic and operational assumptions and projections, including those related to the pace and strength of the economic recovery from the COVID-19 pandemic. Actual results could differ materially from these estimates based on a variety of factors as discussed under "Forward-Looking Statements" below.

Note that individual quarters may fluctuate on both a cash basis and an accrual basis due to the timing of the business recovery from the COVID-19 pandemic, the timing of lease commencements and expirations, abatement periods, repairs and maintenance expenses, capital expenditures, capital markets

activities, seasonal general and administrative expenses, accrued potential performance-based compensation expenses, and one-time revenue or expense events.

Non-GAAP Financial Measures

To supplement the presentation of the Company’s financial results prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), this release and the accompanying quarterly supplemental information as of and for the period ended March 31, 2021 contain certain financial measures that are not prepared in accordance with GAAP, including FFO, Core FFO, AFFO, Same Store NOI (cash and accrual basis), Property NOI (cash and accrual basis), EBITDAre, and Core EBITDA. Definitions and reconciliations of each of these non-GAAP measures to their most comparable GAAP metrics are included below and in the accompanying quarterly supplemental information.

Each of the non-GAAP measures included in this release and the accompanying quarterly supplemental financial information has limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of the Company’s results calculated in accordance with GAAP. In addition, because not all companies use identical calculations, the Company’s presentation of non-GAAP measures in this release and the accompanying quarterly supplemental information may not be comparable to similarly titled measures disclosed by other companies, including other REITs. The Company may also change the calculation of any of the non-GAAP measures included in this news release and the accompanying supplemental financial information from time to time in light of its then existing operations.

Conference Call Information

Piedmont has scheduled a conference call and an audio web cast for Thursday, April 29, 2021 at 10:00 A.M. Eastern daylight time. The live, listen-only, audio web cast of the call may be accessed on the Company's website at http://investor.piedmontreit.com/news-and-events/events-calendar. Dial-in numbers for analysts who plan to actively participate in the call are (844) 602-0380 for participants in the United States and Canada and (862) 298-0970 for international participants. A replay of the conference call will be available through 10:00 A.M. Eastern daylight time on May 13, 2021, and may be accessed by dialing (877) 481-4010 for participants in the United States and Canada and (919) 882-2331 for international participants, followed by conference identification code 40769. A web cast replay will also be available after the conference call in the Investor Relations section of the Company's website. During the audio web cast and conference call, the Company's management team will review first quarter 2021 performance, discuss recent events, and conduct a question-and-answer period.

Supplemental Information

Quarterly supplemental information as of and for the period ended March 31, 2021 can be accessed on the Company`s website under the Investor Relations section at www.piedmontreit.com.

About Piedmont Office Realty Trust

Piedmont Office Realty Trust, Inc. (NYSE: PDM) is an owner, manager, developer, redeveloper, and operator of high-quality, Class A office properties located primarily in select sub-markets within seven major Eastern U.S. office markets, with the majority of its revenue being generated from the Sunbelt. Its geographically-diversified, approximately $5 billion portfolio is currently comprised of approximately 17 million square feet. The Company is a fully-integrated, self-managed real estate investment trust (REIT) with local management offices in each of its markets and is investment-grade rated by S&P Global Ratings (BBB) and Moody’s (Baa2). Piedmont is a 2021 ENERGY STAR Partner of the Year. For more information, see www.piedmontreit.com.

Forward-Looking Statements

Certain statements contained in this press release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The Company intends for all such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, as applicable. Such information is subject to certain risks and uncertainties, as well as known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of the Company`s performance in future periods. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as "may," "will," "expect," "intend," "anticipate," "believe," "continue" or similar words or phrases that are predictions of future events or trends and which do not relate solely to historical matters. Examples of such statements in this press release include: the anticipated continued momentum in the Company's leasing pipeline and the Company's estimated range of Net Income, Depreciation, Amortization, NAREIT FFO/Core FFO and NAREIT FFO/Core FFO per diluted share for the year ending December 31, 2021.

The following are some of the factors that could cause the Company's actual results and its expectations to differ materially from those described in the Company's forward-looking statements: actual or threatened public health epidemics or outbreaks, such as the COVID-19 pandemic that the world is currently experiencing, and governmental and private measures taken to combat such health crises, which may affect our personnel, tenants, tenants' operations and ability to pay lease obligations, demand for office space, and the costs of operating our assets; the adequacy of our general reserve related to tenant lease-related assets established as a result of the COVID-19 pandemic, as well as the impact of any increase in this reserve or the establishment of any other reserve in the future; economic, regulatory, socioeconomic changes, and/or technology changes (including accounting standards) that impact the real estate market generally, or that could affect patterns of use of commercial office space; the impact of competition on our efforts to renew existing leases or re-let space on terms similar to existing leases; changes in the economies and other conditions affecting the office sector in general and specifically the seven markets in which we primarily operate where we have high concentrations of our annualized lease revenue; lease terminations, lease defaults, or changes in the financial condition of our tenants, particularly by one of our large lead tenants; adverse market and economic conditions, including any resulting impairment charges on both our long-lived assets or goodwill resulting therefrom; the success of our real estate strategies and investment objectives, including our ability to identify and consummate suitable acquisitions and divestitures; the illiquidity of real estate investments, including regulatory restrictions to which REITs are subject and the resulting impediment on our ability to quickly respond to adverse changes in the performance of our properties; the risks and uncertainties associated with our

acquisition and disposition of properties, many of which risks and uncertainties may not be known at the time of acquisition or disposition; development and construction delays and resultant increased costs and risks; our real estate development strategies may not be successful; future acts of terrorism, civil unrest, or armed hostilities in any of the major metropolitan areas in which we own properties, or future cybersecurity attacks against any of our tenants; risks related to the occurrence of cyber incidents, or a deficiency in our cybersecurity, which could negatively impact our business by causing a disruption to our operations, a compromise or corruption of our confidential information, and/or damage to our business relationships; costs of complying with governmental laws and regulations; uninsured losses or losses in excess of our insurance coverage, and our inability to obtain adequate insurance coverage at a reasonable cost; additional risks and costs associated with directly managing properties occupied by government tenants, including an increased risk of default by government tenants during periods in which state or federal governments are shut down or on furlough; significant price and volume fluctuations in the public markets, including on the exchange which we listed our common stock; changes in interest rates and changes in the method pursuant to which the LIBOR rates are determined and the planned phasing out of USD LIBOR after June 2023; high interest rates which could affect our ability to finance or refinance properties; the effect of future offerings of debt or equity securities or changes in market interest rates on the value of our common stock; uncertainties associated with environmental and other regulatory matters; potential changes in the political environment and reduction in federal and/or state funding of our governmental tenants; changes in the financial condition of our tenants directly or indirectly resulting from geopolitical developments that could negatively affect international trade, the termination or threatened termination of existing international trade agreements, or the implementation of tariffs or retaliatory tariffs on imported or exported goods; the effect of any litigation to which we are, or may become, subject; additional risks and costs associated with owning properties occupied by tenants in particular industries, such as oil and gas, hospitality, travel, co-working, etc., including risks of default during start-up and during economic downturns; changes in tax laws impacting REITs and real estate in general, as well as our ability to continue to qualify as a REIT under the Internal Revenue Code of 1986, as amended, or otherwise adversely affect our stockholders; the future effectiveness of our internal controls and procedures; and other factors, including the risk factors discussed under Item 1A. of Piedmont’s most recent Annual Report on Form 10-K and other documents we file with the Securities and Exchange Commission.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company cannot guarantee the accuracy of any such forward-looking statements contained in this press release, and the Company does not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Research Analysts/ Institutional Investors Contact:

Eddie Guilbert

770-418-8592

research.analysts@piedmontreit.com

Shareholder Services/Transfer Agent Services Contact:

Computershare, Inc.

866-354-3485

investor.services@piedmontreit.com

Piedmont Office Realty Trust, Inc.
Consolidated Balance Sheets (Unaudited)
(in thousands)
	March 31, 2021		December 31, 2020
Assets:
Real estate assets, at cost:
Land	$	484,467	$	484,466
Buildings and improvements	3,239,199		3,191,767
Buildings and improvements, accumulated depreciation	(793,064)		(767,542)
Intangible lease assets	155,634		158,444
Intangible lease assets, accumulated amortization	(72,475)		(67,850)
Construction in progress	47,498		56,749
Total real estate assets	3,061,259		3,056,034
Cash and cash equivalents	10,689		7,331
Tenant receivables	4,545		8,448
Straight line rent receivables	156,257		151,153
Notes receivable	118,500		118,500
Restricted cash and escrows	1,741		1,883
Prepaid expenses and other assets	22,647		23,277
Goodwill	98,918		98,918
Deferred lease costs, gross	445,753		446,885
Deferred lease costs, accumulated depreciation	(182,435)		(172,619)
Total assets	$	3,737,874	$	3,739,810
Liabilities:
Unsecured debt, net of discount and unamortized debt issuance costs of $10,181 and $10,932, respectively	$	1,633,819	$	1,594,068
Secured debt, inclusive of premium and unamortized debt issuance costs of $203 and $326, respectively	27,628		27,936
Accounts payable, accrued expenses, and accrued capital expenditures	92,183		111,997
Dividends payable	—		25,683
Deferred income	56,638		36,891
Intangible lease liabilities, less accumulated amortization	32,607		35,440
Interest rate swaps	7,654		9,834
Total liabilities	1,850,529		1,841,849
Stockholders' equity:
Common stock	1,240		1,238
Additional paid in capital	3,697,801		3,693,996
Cumulative distributions in excess of earnings	(1,791,558)		(1,774,856)
Other comprehensive income	(21,813)		(24,100)
Piedmont stockholders' equity	1,885,670		1,896,278
Noncontrolling interest	1,675		1,683
Total stockholders' equity	1,887,345		1,897,961
Total liabilities and stockholders' equity	$	3,737,874	$	3,739,810
Number of shares of common stock outstanding as of end of period	124,029		123,839
Net debt (Unsecured and Secured debt, less Cash and cash equivalents)	1,650,758		1,614,673
Total Principal Amount of Debt Outstanding (Unsecured debt plus discount and unamortized debt issuance costs and Secured debt less premium and unamortized debt issuance costs)	1,671,425		1,632,610

Piedmont Office Realty Trust, Inc.
Consolidated Statements of Income
Unaudited (in thousands, except for per share data)
	Three Months Ended
	3/31/2021		3/31/2020
Revenues:
Rental and tenant reimbursement revenue	$	125,912	$	132,154
Property management fee revenue	758		773
Other property related income	2,587		4,244
Total revenues	129,257		137,171
Expenses:
Property operating costs	51,424		53,190
Depreciation	28,103		27,884
Amortization	22,912		23,631
General and administrative	7,251		8,643
Total operating expenses	109,690		113,348
Other income (expense):
Interest expense	(12,580)		(15,264)
Other income	2,356		149
Gain on sale of real estate assets	—		3
Total other income (expense)	(10,224)		(15,112)
Net income	9,343		8,711
Net loss/(income) applicable to noncontrolling interest	1		(2)
Net income applicable to Piedmont	$	9,344	$	8,709
Weighted average common shares outstanding - diluted	124,450		126,360
Net income per share applicable to common stockholders - diluted	$	0.08	$	0.07

Piedmont Office Realty Trust, Inc.
Funds From Operations, Core Funds From Operations and Adjusted Funds From Operations
Unaudited (in thousands, except for per share data)
	Three Months Ended
	3/31/2021		3/31/2020
GAAP net income applicable to common stock	$	9,344	$	8,709
Depreciation of real estate assets(1)	27,812		27,551
Amortization of lease-related costs	22,900		23,618
Gain on sale of real estate assets	—		(3)
NAREIT Funds From Operations and Core Funds from Operations applicable to common stock*	60,056		59,875
Amortization of debt issuance costs, fair market 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/below-market in-place lease intangibles	(2,792)		(2,973)
Non-incremental capital expenditures(2)	(17,347)		(34,762)		(3)
Adjusted Funds From Operations applicable to common stock*	$	37,861	$	18,557
Weighted average common shares outstanding - diluted	124,450		126,360
Funds From Operations and Core Funds From Operations per share (diluted)	$	0.48	$	0.47

(1)Excludes depreciation of non real estate assets.

(2)Capital expenditures of a recurring nature related to tenant improvements and leasing commissions that do not incrementally enhance the underlying assets' income generating capacity. Tenant improvements, leasing commissions, building capital and deferred lease incentives incurred to lease space that was vacant at acquisition, leasing costs for spaces vacant for greater than one year, leasing costs for spaces at newly acquired properties for which in-place leases expire shortly after acquisition, improvements associated with the expansion of a building and renovations that change the underlying classification of a building are excluded from this measure.

(3) Includes the leasing commission for the approximately 20-year, 520,000-square-foot renewal and expansion of the State of New York's lease at our 60 Broad Street building in New York City that was executed during the fourth quarter of 2019.

Piedmont Office Realty Trust, Inc.
EBITDAre, Core EBITDA, Property Net Operating Income (Cash and Accrual), Same Store Net Operating Income (Cash and Accrual)
Unaudited (in thousands)
	Cash Basis					Accrual Basis
	Three Months Ended					Three Months Ended
	3/31/2021			3/31/2020		3/31/2021			3/31/2020
Net income applicable to Piedmont (GAAP)	$	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 and Core EBITDA*	72,938			75,487		72,938			75,487
General & administrative expenses	7,251			8,643		7,251			8,643
Management fee revenue	(390)			(395)		(390)			(395)
Other income	(2,141)			67		(2,141)			67
Non-cash general reserve for uncollectible accounts	412			—
Straight line 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 from:
Acquisitions	(7,440)			(3,539)		(9,211)			(4,729)
Dispositions	413			(8,700)		413			(9,361)
Other investments(1)	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

(1)Other investments consist of active redevelopment and development projects, land, and recently completed redevelopment and development projects. The operating results from 222 South Orange Avenue in Orlando, FL are included in this line item.

*Definitions:

Funds From Operations ("FFO"): The Company calculates FFO in accordance with the current National Association of Real Estate Investment Trusts (“NAREIT”) definition. NAREIT currently defines FFO as net income (computed in accordance with GAAP), excluding gains or losses from sales of property and impairment losses, adding back depreciation and amortization on real estate assets, and after the same adjustments for unconsolidated partnerships and joint ventures. These adjustments can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates. FFO is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of the Company’s operating performance. The Company believes that FFO is helpful to investors as a supplemental performance measure because it excludes the effects of depreciation, amortization and gains or losses from sales of real estate, all of which are based on historical costs, which implicitly assumes that the value of real estate diminishes predictably over time. The Company also believes that FFO can help facilitate comparisons of operating performance between periods and with other REITs. However, other REITs may not define FFO in accordance with the NAREIT definition, or may interpret the current NAREIT definition differently than the Company; therefore, the Company’s computation of FFO may not be comparable to that of such other REITs.

Core Funds From Operations ("Core FFO"): The Company calculates Core FFO by starting with FFO, as defined by NAREIT, and adjusting for gains or losses on the extinguishment of swaps and/or debt, acquisition-related expenses (that are not capitalized) and any significant non-recurring items. Core FFO is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of the Company’s operating performance. The Company believes that Core FFO is helpful to investors as a supplemental performance measure because it excludes the effects of certain items which can create significant earnings volatility, but which do not directly relate to the Company’s core business operations. As a result, the Company believes that Core FFO can help facilitate comparisons of operating performance between periods and provides a more meaningful predictor of future earnings potential. Other REITs may not define Core FFO in the same manner as the Company; therefore, the Company’s computation of Core FFO may not be comparable to that of other REITs.

Adjusted Funds From Operations ("AFFO"): The Company calculates AFFO by starting with Core FFO and adjusting for non-incremental capital expenditures and acquisition-related costs (that are not capitalized) and then adding back non-cash items including: non-real estate depreciation, straight-lined rents and fair value lease adjustments, non-cash components of interest expense and compensation expense, and by making similar adjustments for unconsolidated partnerships and joint ventures. AFFO is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of the Company’s operating performance. The Company believes that AFFO is helpful to investors as a meaningful supplemental comparative performance measure of our ability to make incremental capital investments. Other REITs may not define AFFO in the same manner as the Company; therefore, the Company’s computation of AFFO may not be comparable to that of other REITs.

EBITDAre: The Company calculates EBITDAre in accordance with the current National Association of Real Estate Investment Trusts (“NAREIT”) definition. NAREIT currently defines EBITDAre as net income (computed in accordance with GAAP) adjusted for gains or losses from sales of property, impairment losses, depreciation on real estate assets, amortization on real estate assets, interest expense and taxes, along with the same adjustments for unconsolidated partnerships and joint ventures. Some of the adjustments mentioned can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates. EBITDAre is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of the Company’s operating performance. The Company believes that EBITDAre is helpful to investors as a supplemental performance measure because it provides a metric for understanding the Company’s results from ongoing operations without taking into account the effects of non-cash expenses (such as depreciation and amortization) and capitalization and capital structure expenses (such as interest expense and taxes). The Company also believes that EBITDAre can help facilitate comparisons of operating performance between periods and with other REITs. However, other REITs may not define EBITDAre in accordance with the NAREIT definition, or may interpret the current NAREIT definition differently than the Company; therefore, the Company’s computation of EBITDAre may not be comparable to that of such other REITs.

Core EBITDA: The Company calculates Core EBITDA as net income (computed in accordance with GAAP) before interest, taxes, depreciation and amortization and incrementally removing any impairment losses, gains or losses from sales of property and other significant infrequent items that create volatility within our earnings and make it difficult to determine the earnings generated by our core ongoing business. Core EBITDA is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of the Company’s operating performance. The Company believes that Core EBITDA is helpful to investors as a supplemental performance measure because it provides a metric for understanding the performance of the Company’s results from ongoing operations without taking into account the effects of non-cash expenses (such as depreciation and amortization), as well as items that are not part of normal day-to-day operations of the Company’s business. Other REITs may not define Core EBITDA in the same manner as the Company; therefore, the Company’s computation of Core EBITDA may not be comparable to that of other REITs.

Property Net Operating Income ("Property NOI"): The Company calculates Property NOI by starting with Core EBITDA and adjusting for general and administrative expense, income associated with property management performed by Piedmont for other organizations and other income or expense items for the Company, such as interest income from loan investments or costs from the pursuit of non-consummated transactions. The Company may present this measure on an accrual basis or a cash basis. When presented on a cash basis, the effects of straight lined rents and fair value lease revenue are also eliminated. Property NOI is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of the Company’s operating performance. The Company believes that Property NOI is helpful to investors as a supplemental comparative performance measure of income generated by its properties alone without the administrative overhead of the Company. Other REITs may not define Property NOI in the same manner as the Company; therefore, the Company’s computation of Property NOI may not be comparable to that of other REITs.

Same Store Net Operating Income ("Same Store NOI"): The Company calculates Same Store NOI as Property NOI attributable to the properties for which the following criteria were met during the entire span of the current and prior year reporting periods: (i) they were owned, (ii) they were not under development / redevelopment, and (iii) none of the operating expenses for which were capitalized. Same Store NOI also excludes amounts attributable to land assets. The Company may present this measure on an accrual basis or a cash basis. When presented on a cash basis, the effects of straight lined rents and fair value lease revenue are also eliminated. Same Store NOI is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of the Company’s operating performance. The Company believes that Same Store NOI is helpful to investors as a supplemental comparative performance measure of the income generated

from the same group of properties from one period to the next. Other REITs may not define Same Store NOI in the same manner as the Company; therefore, the Company’s computation of Same Store NOI may not be comparable to that of other REITs.

EX-99.2

EXHIBIT 99.2

Quarterly Supplemental Information

March 31, 2021

Corporate Headquarters	Institutional Analyst Contact	Investor Relations
5565 Glenridge Connector, Suite 450	Telephone: 770.418.8592	Telephone: 866.354.3485
Atlanta, GA 30342	research.analysts@piedmontreit.com	investor.services@piedmontreit.com
Telephone: 770.418.8800		www.piedmontreit.com

Piedmont Office Realty Trust, Inc.

Quarterly Supplemental Information

Index

	Page		Page
Introduction		Other Investments
Corporate Data	3	Other Investments Detail	35
Investor Information	4	Supporting Information
Financial Highlights	5	Definitions	36
Financials		Research Coverage	37
Balance Sheets	9	Non-GAAP Reconciliations	38
Income Statements	10	Property Detail - In-Service Portfolio	40
Key Performance Indicators	12	Risks, Uncertainties and Limitations	42
Funds From Operations / Adjusted Funds From Operations	13
Same Store Analysis	14
Capitalization Analysis	17
Debt Summary	18
Debt Detail	19
Debt Covenant & Ratio Analysis	20
Operational & Portfolio Information - Office Property Investments
Tenant Diversification	21
Tenant Credit Rating & Lease Distribution Information	23
Leased Percentage Information	24
Rental Rate Roll Up / Roll Down Analysis	25
Lease Expiration Schedule	26
Quarterly Lease Expirations	27
Annual Lease Expirations	28
Capital Expenditures	29
Contractual Tenant Improvements & Leasing Commissions	30
Geographic Diversification	31
Geographic Diversification by Location Type	32
Industry Diversification	33
Property Investment Activity	34

Notice to Readers:

Please refer to page 42for a discussion of important risks related to the business of Piedmont Office Realty Trust, Inc., as well as an investment in its securities, including risks that could cause actual results and events to differ materially from results and events referred to in the forward-looking information. Considering these risks, uncertainties, assumptions, and limitations, the forward-looking statements about leasing, financial operations, leasing prospects, acquisitions, dispositions, etc. contained in this quarterly supplemental information report may differ from actual results.

Certain prior period amounts have been reclassified to conform to the current period financial statement presentation. In addition, many of the schedules herein contain rounding to the nearest thousands or millions and, therefore, the schedules may not total due to this rounding convention.

To supplement the presentation of the Company’s financial results prepared in accordance with U.S. generally accepted accounting principles (GAAP), this report contains certain financial measures that are not prepared in accordance with GAAP, including FFO, Core FFO, AFFO, Same Store NOI, Property NOI, EBITDAre and Core EBITDA. Definitions and reconciliations of these non-GAAP measures to their most comparable GAAP metrics are included beginning on page36. Each of the non-GAAP measures included in this report has limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of the Company’s results calculated in accordance with GAAP. In addition, because not all companies use identical calculations, the Company’s presentation of non-GAAP measures in this report may not be comparable to similarly titled measures disclosed by other companies, including other REITs. The Company may also change the calculation of any of the non-GAAP measures included in this report from time to time in light of its then existing operations.

Piedmont Office Realty Trust, Inc.

Corporate Data

Piedmont Office Realty Trust, Inc. (also referred to herein as "Piedmont" or the "Company") (NYSE: PDM) is an owner, manager, developer, redeveloper and operator of high-quality, Class A office properties in select submarkets located primarily within seven major Eastern U.S. office markets, with over half of its revenue generated from the Sunbelt. Its geographically-diversified, approximately $5 billionportfolio is comprised of approximately 17 millionsquare feet (as of the date of release of this report). The Company is a fully-integrated, self-managed real estate investment trust ("REIT") with local management offices in each of its markets and is investment-grade rated by Standard & Poor’s and Moody’s. At the end of the first quarter of 2021, approximately 74% of the Company's portfolio was Energy Star certified and approximately 43% was LEED certified. Piedmont is headquartered in Atlanta, GA.

This data supplements the information provided in our reports filed with the Securities and Exchange Commission and should be reviewed in conjunction with such filings.

	As of		As of
	March 31, 2021		December 31, 2020
Number of consolidated in-service office properties (1)	54		54
Rentable square footage (in thousands) (1)	16,434		16,428
Percent leased (2)	86.0	%	86.8	%
Capitalization (in thousands):
Total debt - principal amount outstanding (excludes premiums, discounts, and deferred financing costs)	$1,671,425		$1,632,610
Equity market capitalization (3)	$2,154,384		$2,009,914
Total market capitalization (3)	$3,825,809		$3,642,524
Total debt / Total market capitalization (3)	43.7	%	44.8	%
Average net debt to Core EBITDA	5.6 x		5.8 x
Total debt / Total gross assets	34.9	%	34.4	%
Common stock data:
High closing price during quarter	$18.56		$16.95
Low closing price during quarter	$15.18		$11.42
Closing price of common stock at period end	$17.37		$16.23
Weighted average fully diluted shares outstanding during quarter (in thousands)	124,450		125,544
Shares of common stock issued and outstanding at period end (in thousands)	124,029		123,839
Annual regular dividend per share (4)	$0.84		$0.84
Rating / Outlook:
Standard & Poor's	BBB / Stable		BBB / Stable
Moody's	Baa2 / Stable		Baa2 / Stable
Employees	131		137

(1)	As of March 31, 2021, our consolidated office portfolio consisted of 54 properties (exclusive of one 127,000 square foot property that was out of service for redevelopment, 222 South Orange Avenue in Orlando, FL).
(2)	Calculated as square footage associated with commenced leases plus square footage associated with executed but uncommenced leases for vacant spaces at our in-service properties, divided by total rentable in-service square footage, all as of the relevant date, expressed as a percentage. Please refer to page24for additional analyses regarding Piedmont's leased percentage.
(3)	Reflects common stock closing price, shares outstanding and outstanding debt as of the end of the reporting period, as appropriate.
(4)	Total of the regular dividends per share for which record dates occurred over the prior four quarters.

3

Piedmont Office Realty Trust, Inc.

Investor Information

Corporate

5565 Glenridge Connector, Suite 450

Atlanta, Georgia 30342

770.418.8800

www.piedmontreit.com

Executive Management
C. Brent Smith	Robert E. Bowers	Edward H. Guilbert, III	Christopher A. Kollme
Chief Executive Officer, President	Chief Financial and Administrative Officer	Executive Vice President, Finance,	Executive Vice President,
and Director	and Executive Vice President	Assistant Secretary and Treasurer	Capital & Strategy
		Investor Relations Contact
Laura P. Moon	Joseph H. Pangburn	Thomas R. Prescott	Alex Valente
Chief Accounting Officer and	Executive Vice President,	Executive Vice President,	Executive Vice President,
Senior Vice President	Southwest Region	Midwest Region and Co-Head of	Southeast Region
		Development
George Wells	Robert K. Wiberg
Executive Vice President,	Executive Vice President,
Real Estate Operations	Northeast Region and Co-Head of
	Development
Board of Directors
Frank C. McDowell	Dale H. Taysom	Kelly H. Barrett	Wesley E. Cantrell
Director, Chairman of the Board of Directors,	Director, Vice Chairman of the	Director, Chair of the Audit Committee,	Director, Chair of the Governance
Chair of the Compensation Committee, and	Board of Directors, and Member of the	and Member of the Governance Committee	Committee, and Member of the
Member of the Governance Committee	Audit and Capital Committees		Compensation Committee
Glenn G. Cohen	Barbara B. Lang	C. Brent Smith	Jeffery L. Swope
Director and Member of the Audit and Capital	Director, Chair of the ESG Committee,	Chief Executive Officer, President	Director, Chair of the Capital
Committees	and Member of the Compensation	and Director	Committee, and Member of the
	and Governance Committees		Compensation Committee

Transfer Agent	Corporate Counsel
Computershare	King & Spalding
P.O. Box 30170	1180 Peachtree Street, NE
College Station, TX 77842-3170	Atlanta, GA 30309
Phone: 866.354.3485	Phone: 404.572.4600

4

Piedmont Office Realty Trust, Inc.

Financial Highlights

As of March 31, 2021

Financial Results (1)

Net income applicable to Piedmont for the quarter ended March 31, 2021 was $9.3 million, or $0.08 per share (diluted), compared to $8.7 million, or $0.07 per share (diluted), for the same quarter in 2020. The increase in net income applicable to Piedmont for the three months ended March 31, 2021 when compared to the same period in 2020 was primarily a result of lower interest expense due to the decrease in the Company's overall debt balance outstanding by nearly $300 million since March 2020, lower general and administrative expenses, and higher interest income attributable to the seller financing Piedmont provided to the purchaser of its New Jersey properties during the fourth quarter of 2020. Partially offsetting the increase in net income attributable to Piedmont in 2021 was decreased real estate operating income as a result of the net disposition activity completed by the Company during the prior twelve months, lower portfolio occupancy, and reduced transient parking revenue as a result of the COVID-19 pandemic.

Funds from operations (FFO) and core funds from operations (Core FFO) for the quarter ended March 31, 2021 were $60.1 million, or $0.48 per share (diluted), compared to $59.9 million, or $0.47 per share (diluted), for the same quarter in 2020. The increase in FFO and Core FFO for the three months ended March 31, 2021 when compared to the same period in 2020 was principally due to the items described above for changes in net income.

The per share results for the first quarter of 2021 were influenced by the repurchase of approximately 2.2 million shares of common stock for a total of approximately $30.6 million (before the consideration of transaction costs) which was completed during the fourth quarter of 2020.

Adjusted funds from operations (AFFO) for the quarter ended March 31, 2021 was $37.9 million, compared to $18.6 million for the same quarter in 2020. The increase in AFFO for the three months ended March 31, 2021 when compared to the same period in 2020 was primarily due to the greater amount of non-incremental capital expenditures incurred during the first quarter of 2020 which was primarily attributable to the 20-year lease renewal with the State of New York at 60 Broad Street in New York, NY, for which leasing commissions totaling $16.1 million were paid.

Operations and Leasing

As of March 31, 2021, Piedmont had 54 in-service office properties located primarily in select submarkets within seven major office markets in the eastern portion of the United States, with over half of our revenue coming from the Sunbelt. On a square footage leased basis, our total in-service office portfolio was 86.0% leased as of March 31, 2021, as compared to 86.8% at December 31, 2020. Please refer to page 24 for additional leased percentage information.

As a result of our diversification, limited exposure to the sectors of the economy most impacted by the pandemic and strong tenant credit profile, our collections have returned to near pre-pandemic levels. To date, of the approximately 1,000 leases in our portfolio, we have entered into rent relief agreements with approximately 70 tenants predominately operating in the retail, hospitality, travel, consulting and co-working sectors. Of the rent deferrals granted to tenants as a result of COVID-19, only approximately $3.3 million in deferred rent remains to be repaid as of March 31, 2021.

The weighted average remaining lease term of our in-service portfolio was 6.0 years(2) as of March 31, 2021 as compared to 6.1 years as of December 31, 2020. Our weighted average adjusted Annualized Lease Revenue(3) per square foot for our in-service portfolio was $37.20 as of March 31, 2021.

(1)	FFO, Core FFO and AFFO are supplemental non-GAAP financial measures. See page 36 for definitions of these non-GAAP financial measures, and pages 13 and 38 for reconciliations of FFO, Core FFO and AFFO to net income.
(2)	Remaining lease term (after taking into account leases for vacant spaces which had been executed but not commenced as of March 31, 2021) is weighted based on Annualized Lease Revenue, as defined on page 36.
(3)	Annualized Lease Revenue is adjusted for buildings at which tenants pay operating expenses directly to include such operating expenses as if they were paid by the Company and reimbursed by the tenants as under a typical net lease structure, thereby incorporating the effective gross rental rate for those buildings.

5

During the three months ended March 31, 2021, the Company completed approximately 678,000 square feet of leasing activity. Of the total leasing activity completed during the quarter, we signed new tenant leases for approximately 154,000 square feet. The average committed capital for tenant improvements and leasing commissions per square foot per year of lease term for all leasing activity completed during the three months ended March 31, 2021 (net of commitment expirations during the period) was $3.40 (see page 30).

Of the 678,000 square feet of leases executed during the three months ended March 31, 2021, significant leases greater than 10,000 square feet are as follows.

Tenant	Property	Market	Square Feet Leased	Expiration Year	Lease Type
Raytheon Company	225 & 235 Presidential Way	Boston	440,130	2031	Renewal
Ascend Learning, LLC	25 Burlington Mall Road	Boston	52,558	2033	New
Industrious ARL 3100 Clarendon Boulevard LLC	3100 Clarendon Boulevard	Washington, DC	39,753	2031	New
Council for Advancement and Support of Education	1201 Eye Street	Washington, DC	15,025	2033	New

At the end of the first quarter of 2021, there was one tenant whose lease individually contributed greater than 1% in Annualized Lease Revenue expiring during the eighteen month period following March 31, 2021. Information regarding the leasing status of the space associated with this tenant's lease is presented below.

Tenant	Property	Property Location	Net Square Footage Expiring	Net Percentage of Current Quarter Annualized Lease Revenue Expiring (%)	Expiration	Current Leasing Status
City of New York	60 Broad Street	New York, NY	313,022	3.0%	In Holdover	The tenant is currently in holdover. After the end of the quarter, the Company signed an interim 5-year lease renewal that is now in process to receive final City approvals.

Future Lease Commencements and Abatements

As of March 31, 2021, our overall leased percentage was 86.0% and our economic leased percentage was 80.6%. The difference between overall leased percentage and economic leased percentage is attributable to two factors:

1)leases which have been contractually entered into for currently vacant spaces but have not yet commenced (amounting to approximately 174,000 square feet of leases as of March 31, 2021, or 1.0% of the portfolio); and

2)leases which have commenced but are within rental abatement or deferral periods (amounting to approximately 812,000 square feet of leases as of March 31, 2021, or a 4.4% impact to leased percentage on an economic basis).

The gap between reported leased percentage and economic leased percentage will fluctuate over time as (1) new leases are signed for vacant spaces, (2) abatements and deferrals associated with existing or newly executed leases commence and expire, and/or (3) properties are bought and sold. See below for more detail on existing large leases with abatements and deferrals. The abatements and deferrals this quarter included COVID-related rent relief (primarily rent deferrals; with a typical duration of between three and four months) representing an approximately 0.2% impact on the gap between leased percentage and economic leased percentage.

Future Lease Commencements

Piedmont has leases with many large corporate office space users. The average size of lease in the Company's portfolio is between 15,000 to 20,000 square feet. Due to the large size and length of term of new leases, Piedmont typically signs leases at least several months in advance of their anticipated lease commencement dates. Presented below is a schedule of uncommenced new leases greater than 50,000 square feet and their anticipated commencement dates. Lease renewals are excluded from this schedule.

Tenant	Property	Property Location	Square Feet Leased	Space Status	Estimated Commencement Date	New / Expansion
District of Columbia Department of General Services	400 Virginia Avenue	Washington, DC	56,042	43,000 SF Vacant	Q1 2022	New
Ascend Learning, LLC	25 Burlington Mall Road	Burlington, MA	52,558	Vacant	Q3 2021	New
salesforce.com	5 Wall Street	Burlington, MA	51,913	Not Vacant	Q3 2021	New

6

Abatements

New leases frequently provide rental abatement concessions to tenants and these abatements typically occur at the beginning of the leases. The currently reported cash net operating income and AFFO understate the Company's long-term cash generation ability from existing leases due to some leases being in abatement periods. Presented below is a schedule of leases with abatements of 50,000 square feet or greater that either were under abatement as of March 31, 2021 or will be under abatement within the next twelve months. (1)

Tenant	Property	Property Location	Abated Square Feet	Lease Commencement Date	Remaining Abatement Schedule	Lease Expiration
Advanced Micro Devices, Inc.	90 Central Street	Boxborough, MA	107,244	Q1 2021	January through March 2021	Q1 2028
Transocean Offshore Deepwater Drilling, Inc.	Enclave Place	Houston, TX	300,906	Q4 2019	Commencement through April 2021	Q2 2036
Ascend Learning, LLC	25 Burlington Mall Road	Burlington, MA	52,558	Q3 2021	July through December 2021	Q4 2033
District of Columbia Department of General Services	400 Virginia Avenue	Washington, DC	56,042	Q1 2022	January through early July 2022	Q4 2032

Financing and Capital Activity

Among Piedmont's stated strategic objectives is to harvest capital through the disposition of non-core assets and assets in which the Company believes the value potential during its ownership has been reached and to use the sale proceeds to:

•continue to invest in accessible, amenity-rich real estate assets with higher overall return prospects and/or strategic merits in one of its identified office markets where it has a significant operating presence with a competitive operating advantage and that otherwise meet its strategic criteria;

•reduce leverage levels by repaying outstanding debt; and/or

•repurchase Company stock when it is believed to be trading at a significant discount to NAV.

Information on the Company's recent activities in furtherance of its strategic objectives is presented below.

Dispositions

There were no dispositions completed during the quarter ended March 31, 2021.

Acquisitions

There were no acquisitions completed during the quarter ended March 31, 2021.

For additional information on acquisitions and dispositions completed over the previous eighteen months, please refer to page 34.

Development / Redevelopment

During the fourth quarter of 2019, Piedmont commenced an approximately $18.5 million redevelopment of 200 South Orange Avenue in Orlando, FL. The project will allow the Company to reposition the property, creating a premier environment for downtown office tenants. The redevelopment plan includes a redesigned lobby and entry experience, an energized outdoor park, the addition of new food and beverage options, an upgraded conference center, a tenant lounge, and a new crown lighting system. As of March 31, 2021, the project is near completion and remains on budget.

Details on the Company's developable land parcels, all of which are located adjacent to existing Piedmont properties, as well as information on its upcoming redevelopment project, can be found on page 35.

Finance

As of March 31, 2021, our ratio of total debt to total gross assets was 34.9%, and the same measure at December 31, 2020 was 34.4%. This debt ratio is based on total principal amount outstanding for our various loans as of the relevant measurement date.

As of March 31, 2021, our average net debt to Core EBITDA ratio was 5.6 x, compared to 5.8 x as of December 31, 2020.

(1) The State of New York lease at 60 Broad Street in New York, NY, does not contain any rental abatement provisions. The tenant's space will be reconstructed over a period of up to four years. During the construction period, the tenant will not be required to pay rental charges for certain spaces that are under construction and not usable by the tenant. The amount of space for which the tenant will not be required to pay rent will vary over time and is expected to average approximately 80,000 square feet over the construction time period.

7

Stock Repurchase Program

No repurchases of the Company's common stock were completed during the first quarter of 2021. As of quarter end, Board-approved capacity remaining for additional repurchases totaled approximately $170 million under the stock repurchase plan. Repurchases of stock under the program are made at the Company's discretion and are dependent on market conditions, the discount to estimated net asset value, other investment opportunities and other factors that the Company deems relevant.

Dividend

On February 2, 2021, the Board of Directors of Piedmont declared a dividend for the first quarter of 2021 in the amount of $0.21 per common share outstanding to stockholders of record as of the close of business on February 26, 2021. The dividend was paid on March 19, 2021.

Subsequent Events

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. The dividend is expected to be paid on June 18, 2021.

Other

Piedmont has been recognized by the U.S. Environmental Protection Agency and the U.S. Department of Energy as a 2021 Energy Star Partner of the Year. Each year, the Energy Star program honors a group of businesses and organizations that have made outstanding contributions to protecting the environment through superior energy achievements. Energy Star award winners lead their industries in the production, sale, and adoption of energy-efficient products, services, and strategies. Piedmont is honored to have been selected as a leader in real estate sustainability, which benefits our tenants and shareholders by lowering operating expenses as well as reducing our portfolio's (and tenants') carbon footprint.

Guidance for 2021

The following financial guidance for calendar year 2021 remains unchanged and is based upon management's assumptions, estimates and expectations at this time. Our projections for 2021 include the assumption of a gradual ramping up of business over the year with a return to a more typical state of operations during the latter half of 2021. This financial guidance does not include the effects of any potential acquisition or disposition activity that may be completed during the year.

(in millions, except per share data)	Low		High
Net Income	$34	-	$38
Add:
Depreciation	115	-	120
Amortization	82	-	86
NAREIT Funds from Operations and Core Funds from Operations applicable to common stock	$231	-	$244
NAREIT Funds from Operations and Core Funds from Operations per diluted share	$1.86	-	$1.96

These estimates reflect management's view of current market conditions and incorporate certain economic and operational assumptions and projections, including those related to the pace and strength of the economic recovery from the COVID-19 pandemic. Actual results could differ from these estimates. Note that individual quarters my fluctuate on both a cash basis and an accrual basis due to the timing of the business recovery from the COVID-19 pandemic, the timing of lease commencements and expirations, abatement periods, repairs and maintenance expenses, capital expenditures, capital markets activities, seasonal general and administrative expenses, accrued potential performance-based compensation expenses, and one-time revenue or expense events. The above guidance is based on information available to management as of the date of this supplemental report. Actual results could differ materially from these estimates based on a variety of factors as discussed on page 42.

8

Piedmont Office Realty Trust, Inc.

Consolidated Balance Sheets

Unaudited (in thousands)

	March 31, 2021		December 31, 2020		September 30, 2020		June 30, 2020		March 31, 2020
Assets:
Real estate, at cost:
Land assets	$	484,467	$	484,466	$	505,228	$	505,228	$	505,234
Buildings and improvements	3,239,199		3,191,767		3,283,980		3,258,713		3,249,947
Buildings and improvements, accumulated depreciation	(793,064)		(767,542)		(803,160)		(776,870)		(755,152)
Intangible lease asset	155,634		158,444		161,870		164,145		167,972
Intangible lease asset, accumulated amortization	(72,475)		(67,850)		(63,353)		(58,148)		(52,538)
Construction in progress	47,498		56,749		56,393		51,045		42,028
Real estate assets held for sale, gross	—		—		—		—		233,951
Real estate assets held for sale, accumulated depreciation & amortization	—		—		—		—		(96,164)
Total real estate assets	3,061,259		3,056,034		3,140,958		3,144,113		3,295,278
Cash and cash equivalents	10,689		7,331		23,958		36,469		7,920
Tenant receivables, net of allowance for doubtful accounts	4,545		8,448		11,301		8,494		10,596
Straight line rent receivable	156,257		151,153		154,620		147,418		139,617
Notes receivable	118,500		118,500		—		—		—
Escrow deposits and restricted cash	1,741		1,883		1,781		1,769		1,758
Prepaid expenses and other assets	22,647		23,277		28,074		33,017		23,933
Goodwill	98,918		98,918		98,918		98,918		98,918
Deferred lease costs, gross	445,753		446,885		463,447		459,398		463,760
Deferred lease costs, accumulated amortization	(182,435)		(172,619)		(169,975)		(159,883)		(148,972)
Other assets held for sale, gross	—		—		—		—		63,524
Other assets held for sale, accumulated amortization	—		—		—		—		(35,516)
Total assets	$	3,737,874	$	3,739,810	$	3,753,082	$	3,769,713	$	3,920,816
Liabilities:
Unsecured debt, net of discount	$	1,633,819	$	1,594,068	$	1,588,411	$	1,592,693	$	1,743,905
Secured debt	27,628		27,936		28,424		28,784		188,779
Accounts payable, accrued expenses, and accrued capital expenditures	92,183		137,680		120,763		95,419		90,459
Deferred income	56,638		36,891		36,613		35,226		35,443
Intangible lease liabilities, less accumulated amortization	32,607		35,440		38,324		41,179		44,646
Interest rate swaps	7,654		9,834		10,618		28,575		26,709
Other liabilities held for sale	—		—		—		—		7,158
Total liabilities	$	1,850,529	$	1,841,849	$	1,823,153	$	1,821,876	$	2,137,099
Stockholders' equity:
Common stock	1,240		1,238		1,260		1,260		1,259
Additional paid in capital	3,697,801		3,693,996		3,692,634		3,691,377		3,690,821
Cumulative distributions in excess of earnings	(1,791,558)		(1,774,856)		(1,740,670)		(1,723,147)		(1,889,109)
Other comprehensive loss	(21,813)		(24,100)		(24,993)		(23,360)		(20,976)
Piedmont stockholders' equity	1,885,670		1,896,278		1,928,231		1,946,130		1,781,995
Non-controlling interest	1,675		1,683		1,698		1,707		1,722
Total stockholders' equity	1,887,345		1,897,961		1,929,929		1,947,837		1,783,717
Total liabilities, redeemable common stock and stockholders' equity	$	3,737,874	$	3,739,810	$	3,753,082	$	3,769,713	$	3,920,816
Common stock outstanding at end of period	124,029		123,839		126,029		126,025		125,921

9

Piedmont Office Realty Trust, Inc.

Consolidated Statements of Income

Unaudited (in thousands except for per share data)

	Three Months Ended
	3/31/2021		12/31/2020		9/30/2020		6/30/2020		3/31/2020
Revenues:
Rental income (1)	$	105,170	$	104,560	$	108,071	$	109,714	$	111,496
Tenant reimbursements (1)	20,742		23,712		20,209		21,533		20,658
Property management fee revenue	758		721		751		622		773
Other property related income	2,587		2,536		2,662		2,762		4,244
	129,257		131,529		131,693		134,631		137,171
Expenses:
Property operating costs	51,424		55,302		53,293		53,148		53,190
Depreciation	28,103		27,236		28,255		27,200		27,884
Amortization	22,912		22,324		22,990		24,349		23,631
General and administrative	7,251		7,415		5,469		5,937		8,643
	109,690		112,277		110,007		110,634		113,348
Other income / (expense):
Interest expense	(12,580)		(13,048)		(12,725)		(13,953)		(15,264)
Other income / (expense)	2,356		1,770		319		349		149
Gain / (loss) on extinguishment of debt	—		—		—		(9,336)		—
Gain / (loss) on sale of real estate (2)	—		14,634		(340)		191,369		3
Net income	9,343		22,608		8,940		192,426		8,711
Less: Net (income) / loss applicable to noncontrolling interest	1		1		3		1		(2)
Net income applicable to Piedmont	$	9,344	$	22,609	$	8,943	$	192,427	$	8,709
Weighted average common shares outstanding - diluted	124,450		125,544		126,385		126,500		126,360
Net income per share available to common stockholders - diluted	$	0.08	$	0.18	$	0.07	$	1.52	$	0.07
Common stock outstanding at end of period	124,029		123,839		126,029		126,025		125,921

(1)

The presentation method used for this line is not in conformance with GAAP. To be in conformance with the current GAAP standard, the Company would need to combine amounts presented on the rental income line with amounts presented on the tenant reimbursements line and present that aggregated figure on one line entitled "rental and tenant reimbursement revenue." The amounts presented on this line were determined based upon the Company's interpretation of the rental charges and billing method provisions in each of the Company's lease documents.

(2)

The gain on sale of real estate reflected in the fourth quarter of 2020 was primarily related to the sales of 200 and 400 Bridgewater Crossing in Bridgewater, NJ. The gain on sale of real estate reflected in the second quarter of 2020 was primarily related to the sale of 1901 Market Street in Philadelphia, PA.

10

Piedmont Office Realty Trust, Inc.

Consolidated Statements of Income

Unaudited (in thousands except for per share data)

	Three Months Ended
	3/31/2021		3/31/2020		Change ($)		Change (%)
Revenues:
Rental income (1)	$	105,170	$	111,496	$	(6,326)	(5.7)	%
Tenant reimbursements (1)	20,742		20,658		84		0.4	%
Property management fee revenue	758		773		(15)		(1.9)	%
Other property related income	2,587		4,244		(1,657)		(39.0)	%
	129,257		137,171		(7,914)		(5.8)	%
Expenses:
Property operating costs	51,424		53,190		1,766		3.3	%
Depreciation	28,103		27,884		(219)		(0.8)	%
Amortization	22,912		23,631		719		3.0	%
General and administrative	7,251		8,643		1,392		16.1	%
	109,690		113,348		3,658		3.2	%
Other income / (expense):
Interest expense	(12,580)		(15,264)		2,684		17.6	%
Other income / (expense)	2,356		149		2,207		1,481.2	%
Gain / (loss) on sale of real estate	—		3		(3)		(100.0)	%
Net income	9,343		8,711		632		7.3	%
Less: Net (income) / loss applicable to noncontrolling interest	1		(2)		3		150.0	%
Net income applicable to Piedmont	$	9,344	$	8,709	$	635	7.3	%
Weighted average common shares outstanding - diluted	124,450		126,360
Net income per share available to common stockholders - diluted	$	0.08	$	0.07
Common stock outstanding at end of period	124,029		125,921

(1) The presentation method used for this line is not in conformance with GAAP. To be in conformance with the current GAAP standard, the Company would need to combine amounts presented on the rental income line with amounts presented on the tenant reimbursements line and present that aggregated figure on one line entitled "rental and tenant reimbursement revenue." The amounts presented on this line were determined based upon the Company's interpretation of the rental charges and billing method provisions in each of the Company's lease documents.

11

Piedmont Office Realty Trust, Inc.

Key Performance Indicators

Unaudited (in thousands except for per share data)

This section of our supplemental report includes non-GAAP financial measures, including, but not limited to, Earnings Before Interest, Taxes, Depreciation, and Amortization for real estate (EBITDAre), Core Earnings Before Interest, Taxes, Depreciation, and Amortization (Core EBITDA), Funds from Operations (FFO), Core Funds from Operations (Core FFO), and Adjusted Funds from Operations (AFFO). Definitions of these non-GAAP measures are provided on page 36and reconciliations are provided beginning on page 38.

For comparison purposes, on January 1, 2020, Piedmont placed back into service one redevelopment property, Two Pierce Place in Itasca, IL. The building was approximately 42% leased at the time it was placed back into service. No other properties were placed back into service during any of the periods presented.

	Three Months Ended
Selected Operating Data	3/31/2021		12/31/2020		9/30/2020		6/30/2020		3/31/2020
Percent leased (1)	86.0	%	86.8	%	86.9	%	88.6	%	89.6	%
Percent leased - economic (1) (2)	80.6	%	82.0	%	80.7	%	81.1	%	84.0	%
Total revenues	$129,257		$131,529		$131,693		$134,631		$137,171
Net income attributable to Piedmont	$9,344		$22,609		$8,943		$192,427		$8,709
Core EBITDA	$72,938		$70,582		$73,250		$75,895		$75,487
Core FFO applicable to common stock	$60,056		$57,229		$60,219		$61,603		$59,875
Core FFO per share - diluted	$0.48		$0.46		$0.48		$0.49		$0.47
AFFO applicable to common stock	$37,861		$36,291		$37,606		$44,968		$18,557
Gross regular dividends (3)	$26,046		$26,145		$26,466		$26,465		$26,443
Regular dividends per share (3)	$0.21		$0.21		$0.21		$0.21		$0.21
Selected Balance Sheet Data
Total real estate assets, net	$3,061,259		$3,056,034		$3,140,958		$3,144,113		$3,295,278
Total assets	$3,737,874		$3,739,810		$3,753,082		$3,769,713		$3,920,816
Total liabilities	$1,850,529		$1,841,849		$1,823,153		$1,821,876		$2,137,099
Ratios & Information for Debt Holders
Core EBITDA margin (4)	56.4	%	53.7	%	55.6	%	56.4	%	55.0	%
Fixed charge coverage ratio (5)	5.4 x		5.1 x		5.5 x		5.3 x		4.8 x
Average net debt to Core EBITDA (6)	5.6 x		5.8 x		5.5 x		6.2 x		5.7 x
Total gross real estate assets	$3,926,798		$3,891,426		$4,007,471		$3,979,131		$4,199,132
Net debt (7)	$1,658,995		$1,623,396		$1,602,237		$1,590,007		$1,930,834

(1)	Please refer to page 24 for additional leased percentage information.
(2)	Economic leased percentage excludes the square footage associated with executed but not commenced leases for currently vacant spaces and the square footage associated with tenants receiving rental abatements (after proportional adjustments for tenants receiving only partial rental abatements). Due to variations in rental abatement structures, there will be variability to the economic leased percentage over time as abatements commence and expire. Please see the Future Lease Commencements and Abatements section of Financial Highlights for details on near-term abatements for large leases.
(3)	Dividends are reflected in the quarter in which the record date occurred.
(4)	Core EBITDA margin is calculated as Core EBITDA divided by total revenues.
(5)	The fixed charge coverage ratio is calculated as Core EBITDA divided by the sum of interest expense, principal amortization, capitalized interest and preferred dividends. The Company had no preferred dividends during any of the periods presented; the Company had capitalized interest of $812,649 for the quarter ended March 31, 2021, $368,965 for the quarter ended December 31, 2020, $236,290 for the quarter ended September 30, 2020, $183,846 for the quarter ended June 30, 2020, and $176,040 for the quarter ended March 31, 2020; the Company had principal amortization of $185,368 for the quarter ended March 31, 2021, $365,644 for the quarter ended December 31, 2020, $269,838 for the quarter ended September 30, 2020, $266,128 for the quarter ended June 30, 2020, and $175,383 for the quarter ended March 31, 2020.
(6)	For the purposes of this calculation, we annualize the period's Core EBITDA and use the average daily balance of debt outstanding during the period, less cash and cash equivalents and escrow deposits and restricted cash as of the end of the period.
(7)	Net debt is calculated as the total principal amount of debt outstanding minus cash and cash equivalents and escrow deposits and restricted cash as of the end of the period.

12

Piedmont Office Realty Trust, Inc.

Funds From Operations, Core Funds From Operations and Adjusted Funds From Operations

Unaudited (in thousands except for per share data)

	Three Months Ended
	3/31/2021		3/31/2020
GAAP net income applicable to common stock	$	9,344	$	8,709
Depreciation (1) (2)	27,812		27,551
Amortization (1)	22,900		23,618
Loss / (gain) on sale of properties	—		(3)
NAREIT funds from operations and core funds from operations applicable to common stock	60,056		59,875
Adjustments:
Amortization of debt issuance costs, fair market adjustments on notes payable, and discount on senior notes	654		577
Depreciation of non real estate assets	282		325
Straight-line effects of lease revenue (1)	(4,103)		(6,785)
Stock-based compensation adjustments	1,111		2,300
Amortization of lease-related intangibles (1)	(2,792)		(2,973)
Non-incremental capital expenditures (3)	(17,347)		(34,762)
Adjusted funds from operations applicable to common stock	$	37,861	$	18,557
Weighted average common shares outstanding - diluted	124,450		126,360
Funds from operations per share (diluted)	$	0.48	$	0.47
Core funds from operations per share (diluted)	$	0.48	$	0.47
Common stock outstanding at end of period	124,029		125,921

(1)	Includes our proportionate share of amounts attributable to consolidated properties.
(2)	Excludes depreciation of non real estate assets.
(3)	Non-incremental capital expenditures are defined on page 36. Non-incremental capital expenditures for the three months ended March 31, 2020 include approximately $18.5 million of leasing commissions, with the largest contributor to that amount being the leasing commissions related to the 20-year, approximately 500,000 square foot lease renewal with the State of New York at 60 Broad Street in New York, NY.

13

Piedmont Office Realty Trust, Inc.

Same Store Net Operating Income (Cash Basis)

Unaudited (in thousands)

	Three Months Ended
	3/31/2021			3/31/2020
Net income attributable to Piedmont	$	9,344		$	8,709
Net income / (loss) attributable to noncontrolling interest	(1)			2
Interest expense	12,580			15,264
Depreciation (1)	28,094			27,876
Amortization (1)	22,900			23,618
Depreciation and amortization attributable to noncontrolling interests	21			21
Loss / (gain) on sale of properties	—			(3)
EBITDAre and Core EBITDA (2)	72,938			75,487
General & administrative expenses	7,251			8,643
Non-cash general reserve for uncollectible accounts (3)	412			—
Management fee revenue (4)	(390)			(395)
Other (income) / expense (1) (5)	(2,141)			67
Straight-line effects of lease revenue (1)	(4,103)			(6,785)
Straight-line effects of lease revenue attributable to noncontrolling interests	1			(3)
Amortization of lease-related intangibles (1)	(2,792)			(2,973)
Property net operating income (cash basis)	71,176			74,041
Deduct net operating (income) / loss from:
Acquisitions (6)	(7,440)			(3,539)
Dispositions (7)	413			(8,700)
Other investments (8)	144			103
Same store net operating income (cash basis)	$	64,293		$	61,905
Change period over period	3.9		%	N/A

(1)	Includes our proportionate share of amounts attributable to consolidated properties.
(2)	The Company has historically recognized approximately $2 to $3 million of termination income on an annual basis (over the last 5 years). Given the size of its asset base and the number of tenants with which it conducts business, Piedmont considers termination income of that magnitude to be a normal part of its operations and a recurring part of its revenue stream; however, the recognition of termination income is typically variable between quarters and throughout any given year and is dependent upon when during the year the Company receives termination notices from tenants. During the three months ended March 31, 2021, Piedmont recognized $2.7 million in termination income (the majority of which was attributable to the WeWork lease termination in Orlando, FL), as compared with $0.6 million during the same period in 2020 and $0.8 million during the prior quarter.
(3)	As a result of COVID-19 and as a precautionary measure, during the second quarter of 2020, the Company established a general reserve for potential future losses on customer accounts. The general reserve is non-cash in nature and, therefore, any changes in the reserve are removed from the calculation of cash basis same store net operating income. No such reserves were made in any periods prior to the second quarter of 2020.
(4)	Presented net of related operating expenses incurred to earn the revenue; therefore, the information presented on this line will not tie to the data presented on the income statements.
(5)	Figures presented on this line may not tie back to the relevant sources as some activity is attributable to property operations and is, therefore, presented in property net operating income.
(6)	Acquisitions include One Galleria Tower, Two Galleria Tower and Three Galleria Tower in Dallas, TX, purchased on February 12, 2020.
(7)	Dispositions include 1901 Market Street in Philadelphia, PA, sold on June 25, 2020, and the New Jersey property portfolio sold on October 28, 2020 (consisting of the Company's final remaining assets in the state, 200 and 400 Bridgewater Crossing in Bridgewater, NJ, and 600 Corporate Drive in Lebanon, NJ).
(8)	Other investments include active out-of-service redevelopment and development projects, land, and recently completed redevelopment and development projects. Additional information on our land holdings can be found on page 35. The operating results from 222 South Orange Avenue in Orlando, FL, are included in this line item.

14

Piedmont Office Realty Trust, Inc.

Same Store Net Operating Income (Accrual Basis)

Unaudited (in thousands)

	Three Months Ended
	3/31/2021			3/31/2020
Net income attributable to Piedmont	$	9,344		$	8,709
Net income / (loss) attributable to noncontrolling interest	(1)			2
Interest expense	12,580			15,264
Depreciation (1)	28,094			27,876
Amortization (1)	22,900			23,618
Depreciation and amortization attributable to noncontrolling interests	21			21
Loss / (gain) on sale of properties	—			(3)
EBITDAre and Core EBITDA (2)	72,938			75,487
General & administrative expenses	7,251			8,643
Management fee revenue (3)	(390)			(395)
Other (income) / expense (1) (4)	(2,141)			67
Property net operating income (accrual basis)	77,658			83,802
Deduct net operating (income) / loss from:
Acquisitions (5)	(9,211)			(4,729)
Dispositions (6)	413			(9,361)
Other investments (7)	200			158
Same store net operating income (accrual basis)	$	69,060		$	69,870
Change period over period	(1.2)		%	N/A
For informational purposes(8)
Add back: Non-cash general reserve for uncollectible accounts	412			—
Adjusted same store net operating income (accrual basis)	$	69,472		$	69,870
Change period over period	(0.6)		%	N/A

(1)	Includes our proportionate share of amounts attributable to consolidated properties.
(2)	The Company has historically recognized approximately $2 to $3 million of termination income on an annual basis (over the last 5 years). Given the size of its asset base and the number of tenants with which it conducts business, Piedmont considers termination income of that magnitude to be a normal part of its operations and a recurring part of its revenue stream; however, the recognition of termination income is typically variable between quarters and throughout any given year and is dependent upon when during the year the Company receives termination notices from tenants. During the three months ended March 31, 2021, Piedmont recognized $2.7 million in termination income (the majority of which was attributable to the WeWork lease termination in Orlando, FL), as compared with $0.6 million during the same period in 2020 and $0.8 million during the prior quarter.
(3)	Presented net of related operating expenses incurred to earn the revenue; therefore, the information presented on this line will not tie to the data presented on the income statements.
(4)	Figures presented on this line may not tie back to the relevant sources as some activity is attributable to property operations and is, therefore, presented in property net operating income.
(5)	Acquisitions include One Galleria Tower, Two Galleria Tower and Three Galleria Tower in Dallas, TX, purchased on February 12, 2020.
(6)	Dispositions include 1901 Market Street in Philadelphia, PA, sold on June 25, 2020, and the New Jersey property portfolio sold on October 28, 2020 (consisting of the Company's final remaining assets in the state, 200 and 400 Bridgewater Crossing in Bridgewater, NJ, and 600 Corporate Drive in Lebanon, NJ).
(7)	Other investments include active out-of-service redevelopment and development projects, land, and recently completed redevelopment and development projects. Additional information on our land holdings can be found on page 35. The operating results from 222 South Orange Avenue in Orlando, FL, are included in this line item.
(8)	As a result of COVID-19 and as a precautionary measure, during the second quarter of 2020, the Company established a general reserve for potential future losses on customer accounts. Because of the unique nature of the reserve and its effect on the Company's financial results, the Company has provided this supplemental disclosure to calculate what the accrual basis same store net operating income growth would have been had there been no activity related to the general reserve for potential future losses. No such reserves were made in any periods prior to the second quarter of 2020.

15

Piedmont Office Realty Trust, Inc.

Same Store Net Operating Income (Financial Components)

Unaudited (in thousands)

		Three Months Ended
		3/31/2021		3/31/2020		Change ($)		Change (%)
Revenue
	Cash rental income (1)	$	90,185	$	87,387	$	2,798	3.2	%
	Tenant reimbursements (2)	17,655		19,264		(1,609)		(8.4)	%
	Straight line effects of lease revenue (3)	3,741		6,355		(2,614)		(41.1)	%
	Amortization of lease-related intangibles	1,438		1,610		(172)		(10.7)	%
	Total rents	113,019		114,616		(1,597)		(1.4)	%
	Other property related income (4)	2,515		4,348		(1,833)		(42.2)	%
Total revenue		115,534		118,964		(3,430)		(2.9)	%
Property operating expense (5)		46,689		49,309		2,620		5.3	%
Property other income / (expense)		215		215		—		—	%
Same store net operating income (accrual)		$	69,060	$	69,870	$	(810)	(1.2)	%
Less:
	Straight line effects of lease revenue	(3,741)		(6,355)		2,614		41.1	%
	Amortization of lease-related intangibles	(1,438)		(1,610)		172		10.7	%
	Non-cash general reserve for uncollectible accounts	412		—		412		100.0	%
Same store net operating income (cash)		$	64,293	$	61,905	$	2,388	3.9	%

(1)	The increase in cash rental income for the three months ended March 31, 2021 as compared to the same period in 2020 was primarily due to the burn off of some significant rental abatements at 1155 Perimeter Center West in Atlanta, GA and Arlington Gateway in Arlington, VA along with a higher amount of termination income in 2021, primarily related to the WeWork termination at 200 South Orange Avenue in Orlando, FL.
(2)	The decrease in tenant reimbursements for the three months ended March 31, 2021 as compared to the same period in 2020 was primarily the result of decreased property operating expenses attributable to the reduced physical utilization of our buildings due to the pandemic.
(3)	The decrease in straight line effects of lease revenue for the three months ended March 31, 2021 as compared to the same period in 2020 was primarily due to the expiration of the rental abatement periods of several large new and renewal leases in the portfolio.
(4)	The decrease in other property related income for the three months ended March 31, 2021 as compared to the same period in 2020 was primarily the result of pandemic-related decreased transient parking activity across the portfolio.
(5)	The decrease in property operating expense for the three months ended March 31, 2021 as compared to the same period in 2020 was primarily attributable to the reduced physical utilization of our buildings due to the pandemic, resulting in savings in several key operating expense categories, including janitorial and parking garage operational expenses.

16

Piedmont Office Realty Trust, Inc.

Capitalization Analysis

Unaudited (in thousands except for per share data)

	As of		As of
	March 31, 2021		December 31, 2020
Market Capitalization
Common stock price	$17.37		$16.23
Total shares outstanding	124,029		123,839
Equity market capitalization (1)	$2,154,384		$2,009,914
Total debt - principal amount outstanding (excludes premiums, discounts, and deferred financing costs)	$1,671,425		$1,632,610
Total market capitalization (1)	$3,825,809		$3,642,524
Total debt / Total market capitalization (1)	43.7	%	44.8	%
Ratios & Information for Debt Holders
Total gross assets (2)	$4,785,848		$4,747,821
Total debt / Total gross assets (2)	34.9	%	34.4	%
Average net debt to Core EBITDA (3)	5.6 x		5.8 x

(1)	Reflects common stock closing price, shares outstanding, and outstanding debt as of the end of the reporting period, as appropriate.
(2)	Total gross assets is defined as total assets with the add-back of accumulated depreciation and accumulated amortization related to real estate assets and accumulated amortization related to deferred lease costs.
(3)	For the purposes of this calculation, we annualize the Core EBITDA for the quarter and use the average daily balance of debt outstanding during the quarter, less cash and cash equivalents and escrow deposits and restricted cash as of the end of the quarter.

17

Piedmont Office Realty Trust, Inc.

Debt Summary

As of March 31, 2021

Unaudited ($ in thousands)

Floating Rate & Fixed Rate Debt
Debt (1)	Principal Amount Outstanding		Weighted Average Stated Interest Rate (2)	Weighted Average Maturity
Floating Rate	$494,000	(3)	1.09%	22.1 months
Fixed Rate	1,177,425		3.76%	52.7 months
Total	$1,671,425		2.97%	43.7 months

Unsecured & Secured Debt
Debt (1)	Principal Amount Outstanding	Weighted Average Stated Interest Rate (2)	Weighted Average Maturity
Unsecured	$1,644,000	2.92%	44.3 months
Secured	27,425	5.55%	5.1 months
Total	$1,671,425	2.97%	43.7 months

Debt Maturities (4)
Maturity Year	Secured Debt - Principal Amount Outstanding (1)	Unsecured Debt - Principal Amount Outstanding (1)	Weighted Average Stated Interest Rate (2)	Percentage of Total
2021	$27,425	$300,000	1.48%	19.6%
2022	—	—	N/A	—%
2023	—	394,000	3.13%	23.6%
2024	—	400,000	4.45%	23.9%
2025	—	250,000	2.06%	15.0%
2026 +	—	300,000	3.15%	17.9%
Total	$27,425	$1,644,000	2.97%	100.0%

(1)	All of Piedmont's outstanding debt as of March 31, 2021 was interest-only debt with the exception of the $27.4 million mortgage associated with 5 Wall Street located in Burlington, MA.
(2)	Weighted average stated interest rate is calculated based upon the principal amounts outstanding.
(3)	The amount of floating rate debt is comprised of the $44 million outstanding balance as of March 31, 2021 on the $500 million unsecured revolving credit facility, $150 million in principal amount of the $250 million unsecured term loan that closed in 2018 that remained unhedged as of March 31, 2021, and the entire principal balance of the $300 million unsecured term loan that closed in 2011. The $250 million unsecured term loan that closed in 2018 has a stated variable rate. However, Piedmont entered into $100 million in notional amount of seven-year interest rate swap agreements resulting in an effectively fixed interest rate for $100 million in principal amount of the term loan (at 3.56% as of March 31, 2021; this rate can change only with a credit rating change for the Company) through the loan's maturity date of March 31, 2025. Additional details regarding the floating rate debt can be found on the following page.
(4)	For loans which provide extension options that are conditional solely upon the Company providing proper notice to the loan's administrative agent and the payment of an extension fee, the final extended maturity date is reflected herein.

18

Piedmont Office Realty Trust, Inc.

Debt Detail

Unaudited ($ in thousands)

Facility (1)	Property	Stated Rate			Maturity	Principal Amount Outstanding as of March 31, 2021
Secured
$35.0 Million Fixed-Rate Loan (2)	5 Wall Street	5.55	%	(3)	9/1/2021	$	27,425
Subtotal / Weighted Average (4)		5.55	%			$	27,425
Unsecured
$300.0 Million Unsecured 2011 Term Loan	N/A	1.11	%	(5)	11/30/2021	$	300,000
$350.0 Million Unsecured 2013 Senior Notes	N/A	3.40	%	(6)	6/1/2023	350,000
$500.0 Million Unsecured Line of Credit (7)	N/A	1.01	%	(8)	9/29/2023	44,000
$400.0 Million Unsecured 2014 Senior Notes	N/A	4.45	%	(9)	3/15/2024	400,000
$250.0 Million Unsecured 2018 Term Loan	N/A	2.06	%	(10)	3/31/2025	250,000
$300.0 Million Unsecured 2020 Senior Notes	N/A	3.15	%	(11)	8/15/2030	300,000
Subtotal / Weighted Average (4)		2.92	%			$	1,644,000
Total Debt - Principal Amount Outstanding / Weighted Average Stated Rate (4)		2.97	%			$	1,671,425
GAAP Accounting Adjustments (12)						(9,978)
Total Debt - GAAP Amount Outstanding						$	1,661,447

(1)	All of Piedmont’s outstanding debt as of March 31, 2021, was interest-only debt with the exception of the $27.4 million mortgage associated with 5 Wall Street located in Burlington, MA.
(2)	The loan is amortizing based on a 25-year amortization schedule.
(3)	The loan has a stated interest rate of 5.55%; however, upon acquiring 5 Wall Street and assuming the loan, the Company marked the debt to its estimated fair value as of that time, resulting in an effective interest rate of 3.75%.
(4)	Weighted average is based on the principal amounts outstanding and interest rates at March 31, 2021.
(5)	The $300 million unsecured 2011 term loan has a variable interest rate. Piedmont may select from multiple interest rate options, including the prime rate and various length LIBOR locks. The all-in interest rate associated with each LIBOR interest period selection is comprised of the relevant base LIBOR interest rate plus a credit spread (1.00% as of March 31, 2021) based on Piedmont's then current credit rating.
(6)	The $350 million unsecured senior notes were offered for sale at 99.601% of the principal amount. The resulting effective cost of the financing is approximately 3.45% before the consideration of transaction costs and proceeds from interest rate hedges. After the application of proceeds from interest rate hedges, the effective cost of the financing is approximately 3.43%.
(7)	All of Piedmont’s outstanding debt as of March 31, 2021, was term debt with the exception of $44 million outstanding on our unsecured revolving credit facility. The $500 million unsecured revolving credit facility has an initial maturity date of September 30, 2022; however, there are two, six-month extension options available under the facility providing for a total extension of up to one year to September 29, 2023. The final extended maturity date is presented on this schedule.
(8)	The interest rate presented for the $500 million unsecured revolving credit facility is the weighted average interest rate for all outstanding draws as of March 31, 2021. Piedmont may select from multiple interest rate options with each draw under the facility, including the prime rate and various length LIBOR locks. The all-in interest rate associated with each LIBOR interest period selection is comprised of the relevant base LIBOR interest rate plus a credit spread (0.90% as of March 31, 2021) based on Piedmont's then current credit rating.
(9)	The $400 million unsecured senior notes were offered for sale at 99.791% of the principal amount. The resulting effective cost of the financing is approximately 4.48% before the consideration of transaction costs and proceeds from interest rate hedges. After the application of proceeds from interest rate hedges, the effective cost of the financing is approximately 4.10%.
(10)	The $250 million unsecured term loan that closed in 2018 has a stated variable interest rate; however, Piedmont entered into $100 million in notional amount of seven-year interest rate swap agreements that effectively fixed the interest rate on $100 million of the term loan (at 3.56% as of March 31, 2021; this rate can change only with a credit rating change for the Company) through the loan's maturity date of March 31, 2025. For the portion of the loan that continues to have a variable interest rate, Piedmont may select from multiple interest rate options, including the prime rate and various length LIBOR locks. The all-in interest rate associated with each LIBOR interest period selection is comprised of the relevant base LIBOR interest rate plus a credit spread (0.95% as of March 31, 2021) based on Piedmont's then current credit rating.
(11)	The $300 million unsecured senior notes were offered for sale at 99.236% of the principal amount. The resulting effective cost of the financing is approximately 3.24% before the consideration of transaction costs and the impact of interest rate hedges. After incorporating the results of the related interest rate hedging activity, the effective cost of the financing is approximately 3.90%.
(12)	The GAAP accounting adjustments relate to original issue discounts, third-party fees, and lender fees resulting from the procurement processes for our various debt facilities, along with debt fair value adjustments associated with the assumed 5 Wall Street debt. The original issue discounts and fees, along with the debt fair value adjustments, are amortized to interest expense over the contractual term of the related debt.

19

Piedmont Office Realty Trust, Inc.

Debt Covenant & Ratio Analysis (for Debt Holders)

As of March 31, 2021

Unaudited

		Three Months Ended
Bank Debt Covenant Compliance (1)	Required	3/31/2021	12/31/2020	9/30/2020	6/30/2020	3/31/2020
Maximum leverage ratio	0.60	0.36	0.35	0.35	0.34	0.38
Minimum fixed charge coverage ratio (2)	1.50	4.96	4.71	4.54	4.32	4.14
Maximum secured indebtedness ratio	0.40	0.01	0.01	0.01	0.01	0.04
Minimum unencumbered leverage ratio	1.60	2.72	2.77	2.85	2.91	2.71
Minimum unencumbered interest coverage ratio (3)	1.75	5.44	5.26	5.13	4.92	4.74

		Three Months Ended
Bond Covenant Compliance (4)	Required	3/31/2021	12/31/2020	9/30/2020	6/30/2020	3/31/2020
Total debt to total assets	60% or less	41.1%	40.6%	40.3%	40.5%	46.0%
Secured debt to total assets	40% or less	0.7%	0.7%	0.7%	0.7%	4.5%
Ratio of consolidated EBITDA to interest expense	1.50 or greater	5.93	5.66	5.52	5.15	4.88
Unencumbered assets to unsecured debt	150% or greater	243%	247%	249%	248%	224%

	Three Months Ended	Twelve Months Ended
Other Debt Coverage Ratios for Debt Holders	March 31, 2021	December 31, 2020
Average net debt to core EBITDA (5)	5.6 x	5.8 x
Fixed charge coverage ratio (6)	5.4 x	5.2 x
Interest coverage ratio (7)	5.4 x	5.3 x

(1)	Bank debt covenant compliance calculations relate to specific calculations detailed in the relevant credit agreements.
(2)	Defined as EBITDA for the trailing four quarters (including the Company's share of EBITDA from unconsolidated interests), excluding one-time or non-recurring gains or losses, less a $0.15 per square foot capital reserve, and excluding the impact of straight line rent leveling adjustments and amortization of intangibles divided by the Company's share of fixed charges, as more particularly described in the credit agreements. This definition of fixed charge coverage ratio as prescribed by our credit agreements is different from the fixed charge coverage ratio definition employed elsewhere within this report.
(3)	Defined as net operating income for the trailing four quarters for unencumbered assets (including the Company's share of net operating income from partially-owned entities and subsidiaries that are deemed to be unencumbered) less a $0.15 per square foot capital reserve divided by the Company's share of interest expense associated with unsecured financings only, as more particularly described in the credit agreements.
(4)	Bond covenant compliance calculations relate to specific calculations prescribed in the relevant debt agreements. Please refer to the Indenture dated May 9, 2013, the Indenture and the First Supplemental Indenture dated March 6, 2014, and the Second Supplemental Indenture dated August 12, 2020, for detailed information about the calculations.
(5)	For the purposes of this calculation, we use the average daily balance of debt outstanding during the period, less cash and cash equivalents and escrow deposits and restricted cash as of the end of the period.
(6)	Fixed charge coverage ratio is calculated as Core EBITDA divided by the sum of interest expense, principal amortization, capitalized interest and preferred dividends. The Company had no preferred dividends during the periods ended March 31, 2021 and December 31, 2020. The Company had capitalized interest of $812,649 for the three months ended March 31, 2021 and $965,142 for the twelve months ended December 31, 2020. The Company had principal amortization of $185,368 for the three months ended March 31, 2021 and $1,076,993 for the twelve months ended December 31, 2020.
(7)	Interest coverage ratio is calculated as Core EBITDA divided by the sum of interest expense and capitalized interest. The Company had capitalized interest of $812,649 for the three months ended March 31, 2021 and $965,142 for the twelve months ended December 31, 2020.

20

Piedmont Office Realty Trust, Inc.

Tenant Diversification (1)

As of March 31, 2021

(in thousands except for number of properties)

Tenant	Credit Rating (2)	Number of Properties	Lease Expiration (3)		Annualized Lease Revenue	Percentage of Annualized Lease Revenue (%)	Leased Square Footage	Percentage of Leased Square Footage (%)
US Bancorp	A+ / A1	3	2023 / 2024		$27,070	5.3	787	5.6
State of New York	AA+ / Aa2	1	2024 / 2039		25,816	5.0	502	3.6
City of New York	AA / Aa2	1	In Holdover	(4)	15,580	3.0	313	2.2
Amazon	AA- / A2	4	2024 / 2025		14,133	2.7	337	2.4
Transocean	CCC- / Caa3	1	2036		10,752	2.1	301	2.1
Harvard University	AAA / Aaa	2	2032 / 2033		8,664	1.7	129	0.9
Raytheon	A- / Baa1	2	2031		7,939	1.5	440	3.1
Schlumberger Technology	A / A2	1	2028		7,819	1.5	254	1.8
Gartner	BB / Ba2	2	2034		7,419	1.4	207	1.5
Fiserv	BBB / Baa2	1	2027		6,980	1.4	195	1.4
VMware, Inc.	BBB- / Baa2	1	2027		6,871	1.3	215	1.5
Nuance Communications	BB- / Ba3	1	2030		6,807	1.3	201	1.4
Epsilon Data Management / subsidiary of Publicis	BBB / Baa2	1	2026		6,557	1.3	222	1.6
WeWork	CCC+ / NR	3	2021 / 2036		6,340	1.2	173	1.2
CVS Caremark	BBB / Baa2	1	2022		6,261	1.2	208	1.5
Applied Predictive Technologies / subsidiary of MasterCard	A+ / A1	1	2028		6,165	1.2	133	0.9
International Food Policy Research Institute	No Rating Available	1	2029		6,047	1.2	102	0.7
Ryan, Inc.	No Rating Available	1	2023		6,001	1.2	170	1.2
Cargill	A / A2	1	2023		5,370	1.0	268	1.9
Bank of America	A- / A2	5	2024 / 2025		5,150	1.0	100	0.7
Salesforce.com	A / A2	1	2029		4,971	1.0	130	0.9
NCS Pearson, Inc.	BBB- / Baa3	1	2027		4,916	1.0	147	1.0
Other			Various		311,519	60.5	8,603	60.9
Total					$515,147	100.0	14,137	100.0

(1)	This schedule presents all tenants contributing 1.0% or more to Annualized Lease Revenue.
(2)	Credit rating may reflect the credit rating of the parent or a guarantor. When available, both the Standard & Poor's credit rating and the Moody's credit rating are provided. The absence of a credit rating for a tenant is not an indication of the creditworthiness of the tenant; in most cases, the lack of a credit rating reflects that the tenant has not sought such a rating.
(3)	Unless otherwise indicated, Lease Expiration represents the expiration year of the majority of the square footage leased by the tenant.
(4)	For additional information on the current leasing status, please refer to page 6 in Financial Highlights.

21

Piedmont Office Realty Trust, Inc.

Tenant Diversification

As of March 31, 2021

Percentage of Annualized Leased Revenue (%)

March 31, 2021 as compared to December 31, 2020

22

Piedmont Office Realty Trust, Inc.

Tenant Credit Rating & Lease Distribution Information

As of March 31, 2021

Tenant Credit Rating (1)

Rating Level	Annualized Lease Revenue (in thousands)	Percentage of Annualized Lease Revenue (%)
AAA / Aaa	$20,741	4.1
AA / Aa	59,797	11.6
A / A	95,401	18.5
BBB / Baa	52,639	10.2
BB / Ba	27,402	5.3
B / B	12,717	2.5
Below	22,770	4.4
Not rated (2)	223,680	43.4
Total	$515,147	100.0

Lease Distribution

Lease Size	Number of Leases	Percentage of Leases (%)	Annualized Lease Revenue (in thousands)	Percentage of Annualized Lease Revenue (%)	Leased Square Footage (in thousands)	Percentage of Leased Square Footage (%)
2,500 or Less	339	35.9	$21,019	4.1	247	1.8
2,501 - 10,000	342	36.3	63,487	12.3	1,743	12.3
10,001 - 20,000	106	11.2	52,703	10.2	1,469	10.4
20,001 - 40,000	80	8.5	82,607	16.0	2,229	15.8
40,001 - 100,000	45	4.8	100,855	19.6	2,703	19.1
Greater than 100,000	31	3.3	194,476	37.8	5,746	40.6
Total	943	100.0	$515,147	100.0	14,137	100.0

(1)	Credit rating may reflect the credit rating of the parent or a guarantor. Where differences exist between the Standard & Poor's credit rating for a tenant and the Moody's credit rating for a tenant, the higher credit rating is selected for this analysis.
(2)	The classification of a tenant as "not rated" is not an indication of the creditworthiness of the tenant; in most cases, the lack of a credit rating reflects that the tenant has not sought such a rating. Included in this category are such tenants as Piper Sandler, Ernst & Young, KPMG, BDO, and RaceTrac Petroleum.

23

Piedmont Office Realty Trust, Inc.

Leased Percentage Information

(in thousands)

	Three Months Ended				Three Months Ended
	March 31, 2021				March 31, 2020
	Leased Square Footage	Rentable Square Footage	Percent Leased (1)		Leased Square Footage	Rentable Square Footage	Percent Leased (1)
As of December 31, 20xx	14,260	16,428	86.8	%	14,633	16,046	91.2	%
Properties placed in service	—	—			204	487
Restated As of December 31, 20xx	14,260	16,428	86.8	%	14,837	16,533	89.7	%
Leases signed during the period	678				417
Less:
Lease renewals signed during period	(524)				(297)
New leases signed during period for currently occupied space	(23)				(33)
Leases expired during period and other	(254)	6			(190)	(3)
Subtotal	14,137	16,434	86.0	%	14,734	16,530	89.1	%
Acquisitions during period (2)	—	—			1,367	1,435
Dispositions during period (2)	—	—			—	—
As of March 31, 20xx	14,137	16,434	86.0	%	16,101	17,965	89.6	%

Same Store Analysis
Less acquisitions / dispositions after March 31, 2020 and developments / out-of-service redevelopments (2) (3)	—	—	—	%	(1,512)	(1,540)	98.2	%
Same Store Leased Percentage	14,137	16,434	86.0	%	14,589	16,425	88.8	%

(1)	Calculated as square footage associated with commenced leases as of period end with the addition of square footage associated with uncommenced leases for spaces vacant as of period end at our in-service properties, divided by total rentable in-service square footage as of period end, expressed as a percentage.
(2)	For additional information on acquisitions and dispositions completed during the last year and current developments and out-of-service redevelopments, please refer to pages 34 and 35, respectively.
(3)	Dispositions completed during the previous twelve months are deducted from the previous period data and acquisitions completed during the previous twelve months are deducted from the current period data. Redevelopments that commenced during the previous twelve months that were taken out of service are deducted from the previous period data and developments and redevelopments placed in service during the previous twelve months are deducted from the current period data.

24

Piedmont Office Realty Trust, Inc.

Rental Rate Roll Up / Roll Down Analysis (1)

(in thousands)

	Three Months Ended
	March 31, 2021
	Square Feet	% of Total Signed During Period	% of Rentable Square Footage	% Change Cash Rents (2)	% Change Accrual Rents (3) (4)
Leases executed for spaces vacant one year or less	496	73.1%	3.0%	(2.8)%	7.0%	(5)
Leases executed for spaces excluded from analysis (6)	182	26.9%

(1)	The populations analyzed for this analysis consist of consolidated leases executed during the relevant period with lease terms of greater than one year. Leases associated with storage spaces, management offices, and newly acquired assets for which there is less than one year of operating history, along with percentage rent leases, are excluded from this analysis.
(2)	For the purposes of this analysis, the last twelve months of cash paying rents of the previous leases are compared to the first twelve months of cash paying rents of the new leases in order to calculate the percentage change.
(3)	For the purposes of this analysis, the accrual basis rents of the previous leases are compared to the accrual basis rents of the new leases in order to calculate the percentage change. For newly signed leases which have variations in accrual basis rents, whether because of known future expansions, contractions, lease expense recovery structure changes, or other similar reasons, the weighted average of such varying accrual basis rents is used for the purposes of this analysis.
(4)	For leases under which a tenant may use, at its discretion, a portion of its tenant improvement allowance for expenses other than those related to improvements to its space, an assumption is made that the tenant elects to use any such portion of its tenant improvement allowance for improvements to its space prior to the commencement of its lease, unless the Company is notified otherwise by the tenant. This assumption is made based upon historical usage patterns of tenant improvement allowances by the Company's tenants.
(5)	The results for the three months ended March 31, 2021 were heavily influenced by one large lease transaction, the approximately 440,000 square foot lease extension with Raytheon Company at 225 and 235 Presidential Way in Woburn, MA. If the effects of this transaction were to be removed, the percentage change in cash and accrual rents for the remainder of the analysis population for the three months ended March 31, 2021 would be 8.0% and 10.1%, respectively.
(6)	Represents leases signed at our consolidated office assets that do not qualify for inclusion in the analysis, primarily because the spaces for which the new leases were signed had been vacant for more than one year.

25

Piedmont Office Realty Trust, Inc.

Lease Expiration Schedule

As of March 31, 2021

(in thousands)

Expiration Year	Annualized Lease Revenue (1)	Percentage of Annualized Lease Revenue (%)	Rentable Square Footage	Percentage of Rentable Square Footage (%)
Vacant	$—	—	2,297	14.0
2021 (2)	24,441	4.7	658	4.0
2022 (3)	56,390	11.0	1,575	9.6
2023	53,676	10.4	1,643	10.0
2024	54,241	10.5	1,682	10.2
2025	58,516	11.4	1,638	10.0
2026	35,577	6.9	1,048	6.4
2027	44,503	8.6	1,182	7.2
2028	45,642	8.9	1,268	7.7
2029	27,214	5.3	703	4.3
2030	19,226	3.7	531	3.2
2031	14,817	2.9	651	3.9
2032	12,528	2.4	278	1.7
2033	10,126	2.0	195	1.2
Thereafter	58,250	11.3	1,085	6.6
Total / Weighted Average	$515,147	100.0	16,434	100.0

Average Lease Term Remaining
3/31/2021	6.0 years
12/31/2020	6.1 years

(1)	Annualized rental income associated with each newly executed lease for currently occupied space is incorporated herein only at the expiration date for the current lease. Annualized rental income associated with each such new lease is removed from the expiry year of the current lease and added to the expiry year of the new lease. These adjustments effectively incorporate known roll ups and roll downs into the expiration schedule.
(2)	Includes leases with an expiration date of March 31, 2021, comprised of approximately 79,000 square feet and Annualized Lease Revenue of $4.2 million.
(3)	Leases and other revenue-producing agreements on a month-to-month basis, comprised of approximately 331,000 square feet and Annualized Lease Revenue of $16.2 million, are assigned a lease expiration date of a year and a day beyond the period end date. The 313,000 square foot City of New York lease that is in holdover status at 60 Broad Street in New York, NY is included in this classification.

26

Piedmont Office Realty Trust, Inc.

Lease Expirations by Quarter

As of March 31, 2021

(in thousands)

	Q2 2021 (1)		Q3 2021		Q4 2021		Q1 2022
Location	Expiring Square Footage	Expiring Lease Revenue (2)	Expiring Square Footage	Expiring Lease Revenue (2)	Expiring Square Footage	Expiring Lease Revenue (2)	Expiring Square Footage	Expiring Lease Revenue (2)
Atlanta	35	$950	102	$3,171	85	$2,465	93	$2,881
Boston	—	—	28	1,088	—	—	2	93
Dallas	47	1,603	60	2,170	67	2,381	38	1,428
Minneapolis	5	175	24	867	33	1,256	16	546
New York	17	1,065	6	294	—	8	—	10
Orlando	75	2,149	26	840	2	75	15	570
Washington, D.C.	30	3,419	1	32	6	305	3	92
Other	—	—	—	—	9	255	—	24
Total / Weighted Average (3)	209	$9,361	247	$8,462	202	$6,745	167	$5,644

(1)	Includes leases with an expiration date of March 31, 2021, comprised of approximately 79,000 square feet and expiring lease revenue of $4.2 million. No such adjustments are made to other periods presented.
(2)	Expiring Lease Revenue is calculated as expiring square footage multiplied by the gross rent per square foot of the tenant currently leasing the space.
(3)	Total expiring lease revenue in any given year will not tie to the expiring Annualized Lease Revenue presented on the Lease Expiration Schedule on the previous page as the Lease Expiration Schedule accounts for the revenue effects of newly signed leases. Reflected herein are expiring revenues based on in-place rental rates.

27

Piedmont Office Realty Trust, Inc.

Lease Expirations by Year

As of March 31, 2021

(in thousands)

	12/31/2021 (1)		12/31/2022			12/31/2023		12/31/2024		12/31/2025
Location	Expiring Square Footage	Expiring Lease Revenue (2)	Expiring Square Footage	Expiring Lease Revenue (2)		Expiring Square Footage	Expiring Lease Revenue (2)	Expiring Square Footage	Expiring Lease Revenue (2)	Expiring Square Footage	Expiring Lease Revenue (2)
Atlanta	222	$6,586	394	$12,421		205	$6,848	263	$8,553	426	$12,793
Boston	28	1,088	124	5,758		119	4,780	39	2,710	197	6,786
Dallas	175	6,154	532	16,290		448	15,533	214	7,688	417	16,315
Minneapolis	63	2,298	60	2,188		698	19,929	529	18,912	256	9,927
New York	22	1,367	318	15,855	(3)	2	611	69	3,597	7	382
Orlando	102	3,064	94	3,323		100	3,220	377	8,405	243	7,287
Washington, D.C.	37	3,756	51	2,219		67	3,326	178	8,263	51	3,305
Other	9	255	2	37		4	135	13	407	41	1,092
Total / Weighted Average (4)	658	$24,568	1,575	$58,091		1,643	$54,382	1,682	$58,535	1,638	$57,887

(1)	Includes leases with an expiration date of March 31, 2021, comprised of approximately 79,000 square feet and expiring lease revenue of $4.2 million. No such adjustments are made to other periods presented.
(2)	Expiring Lease Revenue is calculated as expiring square footage multiplied by the gross rent per square foot of the tenant currently leasing the space.
(3)	For presentation purposes in this schedule, the City of New York lease, which is currently in holdover, is assigned a lease expiration date of a year and a day beyond the period end date.
(4)	Total expiring lease revenue in any given year will not tie to the expiring Annualized Lease Revenue presented on the Lease Expiration Schedule on page 26 as the Lease Expiration Schedule accounts for the revenue effects of newly signed leases. Reflected herein are expiring revenues based on in-place rental rates.

28

Piedmont Office Realty Trust, Inc.

Capital Expenditures

For the quarter ended March 31, 2021

Unaudited (in thousands)

	For the Three Months Ended
	3/31/2021		12/31/2020		9/30/2020		6/30/2020		3/31/2020
Non-incremental
Building / construction / development	$	12,921	$	9,334	$	6,665	$	3,244	$	7,697
Tenant improvements	3,225		9,839		7,396		2,601		8,530
Leasing costs	1,201		447		1,550		1,844		18,535
Total non-incremental	17,347		19,620		15,611		7,689		34,762
Incremental
Building / construction / development	7,065		9,913		9,343		12,639		13,833
Tenant improvements	2,544		2,014		2,225		2,088		1,789
Leasing costs	618		444		1,330		1,467		1,032
Total incremental	10,227		12,371		12,898		16,194		16,654
Total capital expenditures	$	27,574	$	31,991	$	28,509	$	23,883	$	51,416

NOTE: The information presented on this page is for all consolidated assets.

29

Piedmont Office Realty Trust, Inc.

Contractual Tenant Improvements and Leasing Commission

		Three Months Ended March 31, 2021	For the Year Ended								2016 to 2021 (Weighted Average Total)
			2020		2019		2018		2017	2016
Renewal Leases
	Square feet	523,991	841,020		2,032,452		735,969		1,198,603	880,289	6,212,324
	Tenant improvements per square foot per year of lease term (1)	$1.59	$3.15		$4.28		$4.15		$1.84	$1.35	$3.15
	Leasing commissions per square foot per year of lease term	$1.25	$1.75		$1.63		$1.69		$1.12	$1.05	$1.46
	Total per square foot per year of lease term	$2.84	$4.90		$5.91	(2)	$5.84	(3)	$2.96	$2.40	$4.61
New Leases
	Square feet	154,085	262,228		697,880		864,113		855,069	1,065,630	3,899,005
	Tenant improvements per square foot per year of lease term (1)	$3.45	$6.22		$4.07		$4.58		$4.73	$5.01	$4.67
	Leasing commissions per square foot per year of lease term	$1.39	$2.13		$1.85		$1.73		$1.83	$1.86	$1.81
	Total per square foot per year of lease term	$4.84	$8.35	(4)	$5.92		$6.31	(3)	$6.56	$6.87	$6.48
Total
	Square feet	678,076	1,103,248		2,730,332		1,600,082		2,053,672	1,945,919	10,111,329
	Tenant improvements per square foot per year of lease term (1)	$2.15	$4.30		$4.21		$4.46		$3.55	$3.70	$3.91
	Leasing commissions per square foot per year of lease term	$1.29	$1.89		$1.70		$1.72		$1.54	$1.57	$1.64
	Total per square foot per year of lease term	$3.44	$6.19	(4)	$5.91	(2)	$6.18	(3)	$5.09	$5.27	$5.55
Less Adjustment for Commitment Expirations (5)
	Expired tenant improvements (not paid out) per square foot per year of lease term	-$0.04	-$0.40		-$0.05		-$0.54		-$0.44	-$0.16	-$0.27
	Adjusted total per square foot per year of lease term	$3.40	$5.79		$5.86		$5.64		$4.65	$5.11	$5.28

NOTE:	This information is presented for our consolidated office assets only and excludes activity associated with storage and license spaces.
(1)	For leases under which a tenant may use, at its discretion, a portion of its tenant improvement allowance for expenses other than those related to improvements to its space, an assumption is made that the tenant elects to use any such portion of its tenant improvement allowance for improvements to its space prior to the commencement of its lease, unless the Company is notified otherwise by the tenant. This assumption is made based upon historical usage patterns of tenant improvement allowances by the Company's tenants.
(2)	During 2019, we completed three large lease renewals with significant capital commitments: VMware at 1155 Perimeter Center West in Atlanta, GA, Siemens at Crescent Ridge II in Minnetonka, MN, and the State of New York at 60 Broad Street in New York, NY. If the costs associated with those leases were to be removed from the average committed capital cost calculation, the average committed capital cost per square foot per year of lease term for renewal leases and total leases completed during the twelve months ended December 31, 2019 would be $3.41 and $5.04, respectively.
(3)	During 2018, we completed two large leasing transactions in the Houston, TX market with large capital commitments: a 254,000 square foot lease renewal and expansion with Schlumberger Technology Corporation at 1430 Enclave Parkway and a 301,000 square foot, full-building lease with Transocean Offshore Deepwater Drilling at Enclave Place. If the costs associated with those leases were to be removed from the average committed capital cost calculation, the average committed capital cost per square foot per year of lease term for renewal leases, new leases and total leases completed during the twelve months ended December 31, 2018 would be $5.27, $6.02, and $5.70, respectively.
(4)	During 2020, we completed five new leasing transactions (amounting to 93,000 square feet in total) in the Washington, DC market with large capital commitments. If the costs associated with those leases were to be removed from the average committed capital cost calculation, the average committed capital cost per square foot per year of lease term for new leases and total leases completed during the twelve months ended December 31, 2020 would be $5.62 and $5.06, respectively.
(5)	The Company has historically reported the maximum amount of capital to which it committed in leasing transactions as of the signing of the leases with no subsequent updates for variations and/or changes in tenants' uses of tenant improvement allowances. Many times, tenants do not fully use the allowances provided in their leases or let portions of their tenant improvement allowances expire. In an effort to provide additional clarity on the actual costs of completed leasing transactions, tenant improvement allowances that expired or became no longer available to tenants are disclosed in this section and are deducted from the capital commitments per square foot of leased space in the periods in which they expired in an effort to provide a better estimation of leasing transaction costs over time.

30

Piedmont Office Realty Trust, Inc.

Geographic Diversification

As of March 31, 2021

($ and square footage in thousands)

Location	Number of Properties	Annualized Lease Revenue	Percentage of Annualized Lease Revenue (%)	Rentable Square Footage	Percentage of Rentable Square Footage (%)	Leased Square Footage	Percent Leased (%)
Dallas	13	$102,295	19.8	3,550	21.6	2,984	84.1
Atlanta	9	91,745	17.8	3,393	20.6	2,871	84.6
Washington, D.C.	6	68,336	13.3	1,620	9.8	1,320	81.5
Minneapolis	6	65,849	12.8	2,104	12.8	1,947	92.5
Boston	10	59,586	11.6	1,885	11.5	1,720	91.2
Orlando	6	54,028	10.5	1,754	10.7	1,619	92.3
New York	1	49,802	9.7	1,029	6.3	950	92.3
Other	3	23,506	4.5	1,099	6.7	726	66.1
Total / Weighted Average	54	$515,147	100.0	16,434	100.0	14,137	86.0

31

Piedmont Office Realty Trust, Inc.

Geographic Diversification by Location Type

As of March 31, 2021

(square footage in thousands)

		CBD				URBAN INFILL / SUBURBAN				TOTAL
Location	State	Number of Properties	Percentage of Annualized Lease Revenue (%)	Rentable Square Footage	Percentage of Rentable Square Footage (%)	Number of Properties	Percentage of Annualized Lease Revenue (%)	Rentable Square Footage	Percentage of Rentable Square Footage (%)	Number of Properties	Percentage of Annualized Lease Revenue (%)	Rentable Square Footage	Percentage of Rentable Square Footage (%)
Dallas	TX	—	—	—	—	13	19.8	3,550	21.6	13	19.8	3,550	21.6
Atlanta	GA	—	—	—	—	9	17.8	3,393	20.6	9	17.8	3,393	20.6
Washington, D.C.	DC, VA	3	5.7	722	4.3	3	7.6	898	5.5	6	13.3	1,620	9.8
Minneapolis	MN	1	6.6	937	5.7	5	6.2	1,167	7.1	6	12.8	2,104	12.8
Boston	MA	—	—	—	—	10	11.6	1,885	11.5	10	11.6	1,885	11.5
Orlando	FL	4	8.7	1,445	8.8	2	1.8	309	1.9	6	10.5	1,754	10.7
New York	NY	1	9.7	1,029	6.3	—	—	—	—	1	9.7	1,029	6.3
Other		—	—	—	—	3	4.5	1,099	6.7	3	4.5	1,099	6.7
Total / Weighted Average		9	30.7	4,133	25.1	45	69.3	12,301	74.9	54	100.0	16,434	100.0

32

Piedmont Office Realty Trust, Inc.

Industry Diversification

As of March 31, 2021

($ and square footage in thousands)

				Percentage of
	Number of	Percentage of Total	Annualized Lease	Annualized Lease	Leased Square	Percentage of Leased
Industry	Tenants	Tenants (%)	Revenue	Revenue (%)	Footage	Square Footage (%)
Business Services	93	13.2	$80,962	15.7	2,289	16.2
Engineering, Accounting, Research, Management & Related Services	108	15.3	65,051	12.6	1,736	12.3
Governmental Entity	6	0.8	48,822	9.5	970	6.9
Depository Institutions	17	2.4	37,339	7.2	1,013	7.2
Legal Services	68	9.6	27,328	5.3	766	5.4
Real Estate	40	5.7	26,179	5.1	763	5.4
Miscellaneous Retail	9	1.3	21,952	4.3	590	4.2
Oil and Gas Extraction	5	0.7	18,850	3.7	562	4.0
Security & Commodity Brokers, Dealers, Exchanges & Services	50	7.1	18,160	3.5	505	3.6
Holding and Other Investment Offices	30	4.2	15,952	3.1	430	3.0
Health Services	23	3.3	14,507	2.8	386	2.7
Educational Services	6	0.8	13,543	2.6	257	1.8
Measuring, Analyzing, And Controlling Instruments; Medical and Other Goods	5	0.7	12,300	2.4	587	4.2
Communications	45	6.4	11,394	2.2	266	1.9
Insurance Carriers	16	2.3	9,738	1.9	288	2.0
Other	185	26.2	93,070	18.1	2,729	19.2
Total	706	100.0	$515,147	100.0	14,137	100.0

33

Piedmont Office Realty Trust, Inc.

Property Investment Activity

As of March 31, 2021

($ and square footage in thousands)

Acquisitions Over Previous Eighteen Months

Property	Market / Submarket	Acquisition Date	Percent Ownership (%)	Year Built	Purchase Price	Rentable Square Footage	Percent Leased at Acquisition (%)
One Galleria Tower	Dallas / Lower North Tollway	2/12/2020	100	1982	$123,223	470	92
Two Galleria Tower	Dallas / Lower North Tollway	2/12/2020	100	1985	124,592	434	99
Three Galleria Tower	Dallas / Lower North Tollway	2/12/2020	100	1991	144,343	531	95
Galleria Dallas Land	Dallas / Lower North Tollway	2/12/2020	100	NA	4,000	NA	NA
222 South Orange Avenue	Orlando / CBD	10/29/2020	100	1959	20,000	127	—
Total / Weighted Average					$416,158	1,562	87

Dispositions Over Previous Eighteen Months

Property	Market / Submarket	Disposition Date	Percent Ownership (%)	Year Built	Sale Price	Rentable Square Footage	Percent Leased at Disposition (%)
500 West Monroe Street	Chicago / West Loop	10/28/2019	100	1991	$412,000	967	100
1901 Market Street	Philadelphia / Market Street West	6/25/2020	100	1987	360,000	801	100
New Jersey Portfolio (1)	New York / Route 78	10/28/2020	100	Various	130,000	739	75
Total / Weighted Average					$902,000	2,507	93

(1) The New Jersey Portfolio was comprised of Piedmont's remaining three assets in New Jersey: 200 Bridgewater Crossing and 400 Bridgewater Crossing in Bridgewater, NJ; and 600 Corporate Drive in Lebanon, NJ.

34

Piedmont Office Realty Trust, Inc.

Other Investments

As of March 31, 2021

($ and square footage in thousands)

Developable Land Parcels

Property	Market / Submarket	Adjacent Piedmont Property	Acres	Real Estate Book Value
Gavitello	Atlanta / Buckhead	The Medici	2.0	$2,634
Glenridge Highlands Three	Atlanta / Central Perimeter	Glenridge Highlands One and Two	3.0	2,015
Galleria Atlanta	Atlanta / Northwest	Galleria 100, 200, 300, 400 and 600	11.7	22,015
State Highway 161	Dallas / Las Colinas	Las Colinas Corporate Center I and II, 161 Corporate Center	4.5	3,320
Royal Lane	Dallas / Las Colinas	6011, 6021 and 6031 Connection Drive	10.6	2,834
John Carpenter Freeway	Dallas / Las Colinas	750 West John Carpenter Freeway	3.5	1,000
Galleria Dallas	Dallas / Lower North Tollway	One Galleria Tower, Two Galleria Tower, Three Galleria Tower	1.9	4,006
TownPark	Orlando / Lake Mary	400 and 500 TownPark	18.9	7,699
Total			56.1	$45,523

Redevelopment

Property	Market / Submarket	Adjacent Piedmont Property	Construction Type	Percent Leased (%)	Square Feet	Current Asset Basis (Accrual)
222 South Orange Avenue (1)	Orlando / CBD	200 South Orange Avenue	Redevelopment	—	127	$20.8 million

Loan Investments

Loan Type	Collateral	Location of Collateral	Maturity Date	Book Value ($'s in thousands)	Interest Rate
Senior Loan (2)	200 and 400 Bridgewater Crossing	Bridgewater, NJ	10/31/2023	$102,800	6.0%
Mezzanine Loan (2)	Equity interests in 200 and 400 Bridgewater Crossing	Bridgewater, NJ	10/31/2023	$15,700	13.6%
Total / Weighted Average				$118,500	7.0%

(1)	The property was acquired on October 29, 2020. The redevelopment will include an enhanced window line, allowing more light and air into tenant spaces, along with renovations to the lobby, common areas and restrooms.
(2)	Piedmont provided seller financing with the sale of 200 and 400 Bridgewater Crossing in Bridgewater, NJ, on October 28, 2020.

35

Piedmont Office Realty Trust, Inc.

Supplemental Definitions

Included below are definitions of various terms used throughout this supplemental report, including definitions of certain non-GAAP financial measures and the reasons why the Company’s management believes these measures provide useful information to investors about the Company’s financial condition and results of operations. Reconciliations of any non-GAAP financial measures defined below are included beginning on page 38.

Adjusted Funds From Operations ("AFFO"): The Company calculates AFFO by starting with Core FFO and adjusting for non-incremental capital expenditures and acquisition-related costs (that are not capitalized) and then adding back non-cash items including: non-real estate depreciation, straight-lined rents and fair value lease adjustments, non-cash components of interest expense and compensation expense, and by making similar adjustments for unconsolidated partnerships and joint ventures. AFFO is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of the Company’s operating performance. The Company believes that AFFO is helpful to investors as a meaningful supplemental comparative performance measure of our ability to make incremental capital investments. Other REITs may not define AFFO in the same manner as the Company; therefore, the Company’s computation of AFFO may not be comparable to that of other REITs.

Annualized Lease Revenue ("ALR"): ALR is calculated by multiplying (i) rental payments (defined as base rent plus operating expense reimbursements, if payable by the tenant on a monthly basis under the terms of a lease that has been executed, but excluding a) rental abatements and b) rental payments related to executed but not commenced leases for space that was covered by an existing lease), by (ii) 12. In instances in which contractual rents or operating expense reimbursements are collected on an annual, semi-annual, or quarterly basis, such amounts are multiplied by a factor of 1, 2, or 4, respectively, to calculate the annualized figure. For leases that have been executed but not commenced relating to un-leased space, ALR is calculated by multiplying (i) the monthly base rental payment (excluding abatements) plus any operating expense reimbursements for the initial month of the lease term, by (ii) 12. Unless stated otherwise, this measure excludes revenues associated with development properties and properties taken out of service for redevelopment, if any.

Core EBITDA: The Company calculates Core EBITDA as net income (computed in accordance with GAAP) before interest, taxes, depreciation and amortization and incrementally removing any impairment losses, gains or losses from sales of property and other significant infrequent items that create volatility within our earnings and make it difficult to determine the earnings generated by our core ongoing business. Core EBITDA is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of the Company’s operating performance. The Company believes that Core EBITDA is helpful to investors as a supplemental performance measure because it provides a metric for understanding the performance of the Company’s results from ongoing operations without taking into account the effects of non-cash expenses (such as depreciation and amortization), as well as items that are not part of normal day-to-day operations of the Company’s business. Other REITs may not define Core EBITDA in the same manner as the Company; therefore, the Company’s computation of Core EBITDA may not be comparable to that of other REITs.

Core Funds From Operations ("Core FFO"): The Company calculates Core FFO by starting with FFO, as defined by NAREIT, and adjusting for gains or losses on the extinguishment of swaps and/or debt, acquisition-related expenses (that are not capitalized) and any significant non-recurring items. Core FFO is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of the Company’s operating performance. The Company believes that Core FFO is helpful to investors as a supplemental performance measure because it excludes the effects of certain items which can create significant earnings volatility, but which do not directly relate to the Company’s core business operations. As a result, the Company believes that Core FFO can help facilitate comparisons of operating performance between periods and provides a more meaningful predictor of future earnings potential. Other REITs may not define Core FFO in the same manner as the Company; therefore, the Company’s computation of Core FFO may not be comparable to that of other REITs.

EBITDA: EBITDA is defined as net income before interest, taxes, depreciation and amortization.

EBITDAre: The Company calculates EBITDAre in accordance with the current National Association of Real Estate Investment Trusts (“NAREIT”) definition. NAREIT currently defines EBITDAre as net income (computed in accordance with GAAP) adjusted for gains or losses from sales of property, impairment losses, depreciation on real estate assets, amortization on real estate assets, interest expense and taxes, along with the same adjustments for unconsolidated partnerships and joint ventures. Some of the adjustments mentioned can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates. EBITDAre is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of the Company’s operating performance. The Company believes that EBITDAre is helpful to investors as a supplemental performance measure because it provides a metric for understanding the Company’s results from ongoing operations without taking into account the effects of non-cash expenses (such as depreciation and amortization) and capitalization and capital structure expenses (such as interest expense and taxes). The Company also believes that EBITDAre can help facilitate comparisons of operating performance between periods and with other REITs. However, other REITs may not define EBITDAre in accordance with the NAREIT definition, or may interpret the current NAREIT definition differently than the Company; therefore, the Company’s computation of EBITDAre may not be comparable to that of such other REITs.

Funds From Operations ("FFO"): The Company calculates FFO in accordance with the current National Association of Real Estate Investment Trusts (“NAREIT”) definition. NAREIT currently defines FFO as net income (computed in accordance with GAAP), excluding gains or losses from sales of property and impairment losses, adding back depreciation and amortization on real estate assets, and after the same adjustments for unconsolidated partnerships and joint ventures. These adjustments can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates. FFO is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of the Company’s operating performance. The Company believes that FFO is helpful to investors as a supplemental performance measure because it excludes the effects of depreciation, amortization and gains or losses from sales of real estate, all of which are based on historical costs, which implicitly assumes that the value of real estate diminishes predictably over time. The Company also believes that FFO can help facilitate comparisons of operating performance between periods and with other REITs. However, other REITs may not define FFO in accordance with the NAREIT definition, or may interpret the current NAREIT definition differently than the Company; therefore, the Company’s computation of FFO may not be comparable to that of such other REITs.

Gross Assets: Gross Assets is defined as total assets with the add-back of accumulated depreciation and accumulated amortization related to real estate assets and accumulated amortization related to deferred lease costs.

Gross Real Estate Assets: Gross Real Estate Assets is defined as total real estate assets with the add-back of accumulated depreciation and accumulated amortization related to real estate assets.

Incremental Capital Expenditures: Incremental Capital Expenditures are defined as capital expenditures of a non-recurring nature that incrementally enhance the underlying assets' income generating capacity. Tenant improvements, leasing commissions, building capital and deferred lease incentives ("Leasing Costs") incurred to lease space that was vacant at acquisition, Leasing Costs for spaces vacant for greater than one year, Leasing Costs for spaces at newly acquired properties for which in-place leases expire shortly after acquisition, improvements associated with the expansion of a building, renovations that change the underlying classification of a building, and deferred building maintenance capital identified at and completed shortly after acquisition are included in this measure.

Non-Incremental Capital Expenditures: Non-Incremental Capital Expenditures are defined as capital expenditures of a recurring nature related to tenant improvements and leasing commissions that do not incrementally enhance the underlying assets' income generating capacity. We exclude first generation tenant improvements and leasing commissions from this measure, in addition to other capital expenditures that qualify as Incremental Capital Expenditures, as defined above.

Property Net Operating Income ("Property NOI"): The Company calculates Property NOI by starting with Core EBITDA and adjusting for general and administrative expense, income associated with property management performed by Piedmont for other organizations and other income or expense items for the Company, such as interest income from loan investments or costs from the pursuit of non-consummated transactions. The Company may present this measure on an accrual basis or a cash basis. When presented on a cash basis, the effects of straight lined rents and fair value lease revenue are also eliminated. Property NOI is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of the Company’s operating performance. The Company believes that Property NOI is helpful to investors as a supplemental comparative performance measure of income generated by its properties alone without the administrative overhead of the Company. Other REITs may not define Property NOI in the same manner as the Company; therefore, the Company’s computation of Property NOI may not be comparable to that of other REITs.

Same Store Net Operating Income ("Same Store NOI"): The Company calculates Same Store NOI as Property NOI attributable to the properties for which the following criteria were met during the entire span of the current and prior year reporting periods: (i) they were owned, (ii) they were not under development / redevelopment, and (iii) none of the operating expenses for which were capitalized. Same Store NOI also excludes amounts attributable to land assets. The Company may present this measure on an accrual basis or a cash basis. When presented on a cash basis, the effects of straight lined rents and fair value lease revenue are also eliminated. Same Store NOI is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of the Company’s operating performance. The Company believes that Same Store NOI is helpful to investors as a supplemental comparative performance measure of the income generated from the same group of properties from one period to the next. Other REITs may not define Same Store NOI in the same manner as the Company; therefore, the Company’s computation of Same Store NOI may not be comparable to that of other REITs.

Same Store Properties: Same Store Properties is defined as those properties for which the following criteria were met during the entire span of the current and prior year reporting periods: (i) they were owned, (ii) they were not under development / redevelopment, and (iii) none of the operating expenses for which were capitalized. Same Store Properties excludes land assets.

36

Piedmont Office Realty Trust, Inc.

Research Coverage

Equity Research Coverage

Daniel Ismail	Anthony Paolone, CFA	David Rodgers, CFA	Michael Lewis, CFA
Green Street Advisors	JP Morgan	Robert W. Baird & Co.	Truist Securities
100 Bayview Circle, Suite 400	383 Madison Avenue	200 Public Square	711 Fifth Avenue, 4th Floor
Newport Beach, CA 92660	32nd Floor	Suite 1650	New York, NY 10022
Phone: (949) 640-8780	New York, NY 10179	Cleveland, OH 44139	Phone: (212) 319-5659
	Phone: (212) 622-6682	Phone: (216) 737-7341

Fixed Income Research Coverage

Mark S. Streeter, CFA

JP Morgan

383 Madison Avenue

3rd Floor

New York, NY 10179

Phone: (212) 834-5086

37

Piedmont Office Realty Trust, Inc.

Funds From Operations, Core Funds From Operations, and Adjusted Funds From Operations Reconciliations

Unaudited (in thousands)

	Three Months Ended
	3/31/2021		12/31/2020		9/30/2020		6/30/2020		3/31/2020
GAAP net income applicable to common stock	$	9,344	$	22,609	$	8,943	$	192,427	$	8,709
Depreciation (1) (2)	27,812		26,942		27,960		26,873		27,551
Amortization (1)	22,900		22,312		22,976		24,336		23,618
Loss / (gain) on sale of properties	—		(14,634)		340		(191,369)		(3)
NAREIT funds from operations applicable to common stock	60,056		57,229		60,219		52,267		59,875
Adjustments:
Loss / (gain) on extinguishment of debt	—		—		—		9,336		—
Core funds from operations applicable to common stock	60,056		57,229		60,219		61,603		59,875
Adjustments:
Amortization of debt issuance costs, fair market adjustments on notes payable, and discount on senior notes	654		653		931		672		577
Depreciation of non real estate assets	282		286		286		319		325
Straight-line effects of lease revenue (1)	(4,103)		(2,223)		(6,315)		(7,278)		(6,785)
Stock-based compensation adjustments	1,111		2,733		1,336		645		2,300
Amortization of lease-related intangibles (1)	(2,792)		(2,767)		(3,240)		(3,304)		(2,973)
Non-incremental capital expenditures	(17,347)		(19,620)		(15,611)		(7,689)		(34,762)
Adjusted funds from operations applicable to common stock	$	37,861	$	36,291	$	37,606	$	44,968	$	18,557

(1)	Includes our proportionate share of amounts attributable to consolidated properties.
(2)	Excludes depreciation of non real estate assets.

38

Piedmont Office Realty Trust, Inc.

Same Store Net Operating Income (Cash Basis)

Unaudited (in thousands)

	Three Months Ended
	3/31/2021		12/31/2020		9/30/2020		6/30/2020		3/31/2020
Net income attributable to Piedmont	$	9,344	$	22,609	$	8,943	$	192,427	$	8,709
Net income / (loss) attributable to noncontrolling interest	(1)		(1)		(3)		(1)		2
Interest expense	12,580		13,048		12,725		13,953		15,264
Depreciation	28,094		27,228		28,247		27,192		27,876
Amortization	22,900		22,312		22,976		24,336		23,618
Depreciation and amortization attributable to noncontrolling interests	21		20		22		21		21
Loss / (gain) on sale of properties	—		(14,634)		340		(191,369)		(3)
EBITDAre	72,938		70,582		73,250		66,559		75,487
(Gain) / loss on extinguishment of debt	—		—		—		9,336		—
Core EBITDA	72,938		70,582		73,250		75,895		75,487
General & administrative expenses	7,251		7,415		5,469		5,937		8,643
Non-cash general reserve for uncollectible accounts	412		(278)		(33)		4,865		—
Management fee revenue	(390)		(397)		(422)		(282)		(395)
Other (income) / expense	(2,141)		(1,554)		(104)		(134)		67
Straight-line effects of lease revenue	(4,103)		(2,223)		(6,315)		(7,278)		(6,785)
Straight-line effects of lease revenue attributable to noncontrolling interests	1		(4)		(5)		(3)		(3)
Amortization of lease-related intangibles	(2,792)		(2,767)		(3,240)		(3,304)		(2,973)
Property net operating income (cash basis)	71,176		70,774		68,600		75,696		74,041
Deduct net operating (income) / loss from:
Acquisitions	(7,440)		(7,620)		(6,216)		(5,740)		(3,539)
Dispositions	413		(829)		(3,333)		(8,186)		(8,700)
Other investments	144		162		150		134		103
Same store net operating income (cash basis)	$	64,293	$	62,487	$	59,201	$	61,904	$	61,905

39

Piedmont Office Realty Trust, Inc.

Property Detail - In-Service Portfolio (1)

As of March 31, 2021

(in thousands)

Property	City	State	Percent Ownership	Year Built / Major Refurbishment	Rentable Square Footage Owned	Leased Percentage		Commenced Leased Percentage		Economic Leased Percentage (2)
Atlanta
Glenridge Highlands One	Atlanta	GA	100.0%	1998	288	92.4	%	92.4	%	91.3	%
Glenridge Highlands Two	Atlanta	GA	100.0%	2000	424	97.9	%	97.9	%	97.9	%
1155 Perimeter Center West	Atlanta	GA	100.0%	2000	377	79.0	%	79.0	%	79.0	%
Galleria 100	Atlanta	GA	100.0%	1982	415	83.9	%	83.9	%	81.2	%
Galleria 200	Atlanta	GA	100.0%	1984	432	76.6	%	74.5	%	70.6	%
Galleria 300	Atlanta	GA	100.0%	1987	437	90.6	%	90.6	%	87.4	%
Galleria 400	Atlanta	GA	100.0%	1999	430	92.1	%	90.9	%	90.9	%
Galleria 600	Atlanta	GA	100.0%	2002	434	63.4	%	61.1	%	61.1	%
The Medici	Atlanta	GA	100.0%	2008	156	93.6	%	93.6	%	93.6	%
Metropolitan Area Subtotal / Weighted Average					3,393	84.6	%	83.9	%	82.6	%
Boston
1414 Massachusetts Avenue	Cambridge	MA	100.0%	1873 / 1956	78	100.0	%	100.0	%	100.0	%
One Brattle Square	Cambridge	MA	100.0%	1991	96	97.9	%	97.9	%	97.9	%
One Wayside Road	Burlington	MA	100.0%	1997	201	100.0	%	100.0	%	100.0	%
5 & 15 Wayside Road	Burlington	MA	100.0%	1999 & 2001	272	86.4	%	86.4	%	86.4	%
5 Wall Street	Burlington	MA	100.0%	2008	182	100.0	%	100.0	%	100.0	%
25 Burlington Mall Road	Burlington	MA	100.0%	1987	291	90.0	%	71.8	%	71.8	%
225 Presidential Way	Woburn	MA	100.0%	2001	202	100.0	%	100.0	%	100.0	%
235 Presidential Way	Woburn	MA	100.0%	2000	238	100.0	%	100.0	%	100.0	%
80 Central Street	Boxborough	MA	100.0%	1988	150	35.3	%	35.3	%	35.3	%
90 Central Street	Boxborough	MA	100.0%	2001	175	100.0	%	100.0	%	38.9	%
Metropolitan Area Subtotal / Weighted Average					1,885	91.2	%	88.4	%	82.8	%
Dallas
161 Corporate Center	Irving	TX	100.0%	1998	105	80.0	%	80.0	%	69.5	%
750 West John Carpenter Freeway	Irving	TX	100.0%	1999	316	91.5	%	91.5	%	91.5	%
6011 Connection Drive	Irving	TX	100.0%	1999	152	100.0	%	100.0	%	100.0	%
6021 Connection Drive	Irving	TX	100.0%	2000	222	100.0	%	100.0	%	100.0	%
6031 Connection Drive	Irving	TX	100.0%	1999	233	55.8	%	51.5	%	51.5	%
6565 North MacArthur Boulevard	Irving	TX	100.0%	1998	260	71.2	%	71.2	%	70.8	%
Las Colinas Corporate Center I	Irving	TX	100.0%	1998	161	38.5	%	38.5	%	36.0	%
Las Colinas Corporate Center II	Irving	TX	100.0%	1998	225	84.4	%	81.3	%	80.4	%
One Lincoln Park	Dallas	TX	100.0%	1999	262	69.5	%	69.5	%	68.3	%
Park Place on Turtle Creek	Dallas	TX	100.0%	1986	178	87.6	%	86.5	%	83.7	%
One Galleria Tower	Dallas	TX	100.0%	1982	470	87.7	%	87.7	%	87.2	%
Two Galleria Tower	Dallas	TX	100.0%	1985	434	94.9	%	94.9	%	94.9	%
Three Galleria Tower	Dallas	TX	100.0%	1991	532	95.5	%	95.5	%	95.1	%
Metropolitan Area Subtotal / Weighted Average					3,550	84.1	%	83.5	%	82.7	%

40

Property	City	State	Percent Ownership	Year Built / Major Refurbishment	Rentable Square Footage Owned	Leased Percentage		Commenced Leased Percentage		Economic Leased Percentage (2)
Minneapolis
US Bancorp Center	Minneapolis	MN	100.0%	2000	937	93.2	%	93.1	%	91.7	%
Crescent Ridge II	Minnetonka	MN	100.0%	2000	301	80.4	%	80.4	%	77.4	%
Norman Pointe I	Bloomington	MN	100.0%	2000	214	85.0	%	85.0	%	84.1	%
9320 Excelsior Boulevard	Hopkins	MN	100.0%	2010	268	100.0	%	100.0	%	100.0	%
One Meridian Crossings	Richfield	MN	100.0%	1997	195	100.0	%	100.0	%	100.0	%
Two Meridian Crossings	Richfield	MN	100.0%	1998	189	98.9	%	98.9	%	98.9	%
Metropolitan Area Subtotal / Weighted Average					2,104	92.5	%	92.5	%	91.3	%
New York
60 Broad Street	New York	NY	100.0%	1962	1,029	92.3	%	92.3	%	79.4	%
Metropolitan Area Subtotal / Weighted Average					1,029	92.3	%	92.3	%	79.4	%
Orlando
400 TownPark	Lake Mary	FL	100.0%	2008	175	94.3	%	92.0	%	92.0	%
500 TownPark	Lake Mary	FL	100.0%	2016	134	100.0	%	100.0	%	100.0	%
200 South Orange Avenue	Orlando	FL	100.0%	1988	646	89.0	%	88.1	%	87.0	%
501 West Church Street	Orlando	FL	100.0%	2003	182	100.0	%	100.0	%	100.0	%
CNL Center I	Orlando	FL	99.0%	1999	347	87.6	%	87.6	%	87.6	%
CNL Center II	Orlando	FL	99.0%	2006	270	95.9	%	95.9	%	95.9	%
Metropolitan Area Subtotal / Weighted Average					1,754	92.3	%	91.7	%	91.3	%
Washington, D.C.
400 Virginia Avenue	Washington	DC	100.0%	1985	226	85.4	%	66.4	%	60.2	%
1201 Eye Street	Washington	DC	98.6% (3)	2001	271	57.9	%	54.6	%	54.2	%
1225 Eye Street	Washington	DC	98.1% (3)	1986	225	85.3	%	85.3	%	83.6	%
3100 Clarendon Boulevard	Arlington	VA	100.0%	1987 / 2015	261	76.2	%	70.5	%	65.5	%
4250 North Fairfax Drive	Arlington	VA	100.0%	1998	308	93.8	%	93.8	%	90.9	%
Arlington Gateway	Arlington	VA	100.0%	2005	329	88.1	%	88.1	%	86.3	%
Metropolitan Area Subtotal / Weighted Average					1,620	81.5	%	77.3	%	74.4	%
Other
1430 Enclave Parkway	Houston	TX	100.0%	1994	313	82.7	%	82.7	%	82.7	%
Enclave Place	Houston	TX	100.0%	2015	301	100.0	%	100.0	%	—	%
Two Pierce Place	Itasca	IL	100.0%	1991	485	34.2	%	34.2	%	27.8	%
Subtotal/Weighted Average					1,099	66.1	%	66.1	%	35.9	%
Grand Total					16,434	86.0	%	85.0	%	80.6	%

(1)	This schedule includes information for Piedmont's in-service portfolio of properties only. Information on investments excluded from this schedule can be found on page 35.
(2)	Economic leased percentage excludes the square footage associated with executed but not commenced leases for currently vacant spaces and the square footage associated with tenants receiving rental abatements (after proportional adjustments for tenants receiving only partial rental abatements).
(3)	Although Piedmont owns 98.6% of 1201 Eye Street and 98.1% of 1225 Eye Street, it is entitled to 100% of the cash flows for each asset pursuant to the terms of each property ownership entity's joint venture agreement.

41

Piedmont Office Realty Trust, Inc.

Supplemental Operating & Financial Data

Risks, Uncertainties and Limitations

Certain statements contained in this supplemental package constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We intend for all such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, as applicable. Such information is subject to certain risks and uncertainties, as well as known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of our performance in future periods. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” "estimate," “believe,” “continue” or similar words or phrases that are predictions of future events or trends and which do not relate solely to historical matters. Examples of such statements in this supplemental package include: the estimated financial impacts associated with, and the general business and economic recovery from, the COVID-19 pandemic; estimated Core FFO and Core FFO per diluted share for calendar year 2021; expected future capital expenditures; and potential future acquisition, disposition and financing activity.

The following are some of the factors that could cause our actual results and expectations to differ materially from those described in our forward-looking statements: actual or threatened public health epidemics or outbreaks, such as the COVID-19 pandemic that the world is currently experiencing, and governmental and private measures taken to combat such health crises, which may affect our personnel, tenants, tenants' operations and ability to pay lease obligations, demand for office space, and the costs of operating our assets; the adequacy of our general reserve related to tenant lease-related assets established as a result of the COVID-19 pandemic, as well as the impact of any increase in this reserve or the establishment of any other reserve in the future; economic, regulatory, socio-economic changes, and/or technology changes (including accounting standards) that impact the real estate market generally, or that could affect patterns of use of commercial office space; the impact of competition on our efforts to renew existing leases or re-let space on terms similar to existing leases; changes in the economies and other conditions affecting the office sector in general and specifically the seven markets in which we primarily operate where we have high concentrations of our annualized lease revenue; lease terminations, lease defaults, or changes in the financial condition of our tenants, particularly by one of our large lead tenants; adverse market and economic conditions, including any resulting impairment charges on both our long-lived assets or goodwill resulting therefrom; the success of our real estate strategies and investment objectives, including our ability to identify and consummate suitable acquisitions and divestitures; the illiquidity of real estate investments, including regulatory restrictions to which real estate investment trusts ("REITs") are subject and the resulting impediment on our ability to quickly respond to adverse changes in the performance of our properties; the risks and uncertainties associated with our acquisition and disposition of properties, many of which risks and uncertainties may not be known at the time of acquisition or disposition; development and construction delays and resultant increased costs and risks; our real estate development strategies may not be successful; future acts of terrorism, civil unrest, or armed hostilities in any of the major metropolitan areas in which we own properties, or future cybersecurity attacks against any of our tenants; risks related to the occurrence of cyber incidents, or a deficiency in our cybersecurity, which could negatively impact our business by causing a disruption to our operations, a compromise or corruption of our confidential information, and/or damage to our business relationships; costs of complying with governmental laws and regulations; uninsured losses or losses in excess of our insurance coverage, and our inability to obtain adequate insurance coverage at a reasonable cost; additional risks and costs associated with directly managing properties occupied by government tenants, including an increased risk of default by government tenants during periods in which state or federal governments are shut down or on furlough; significant price and volume fluctuations in the public markets, including on the exchange which we listed our common stock; changes in interest rates and changes in the method pursuant to which the LIBOR rates are determined and the planned phasing out of USD LIBOR after June 2023; high interest rates which could affect our ability to finance or refinance properties; the effect of future offerings of debt or equity securities or changes in market interest rates on the value of our common stock; uncertainties associated with environmental and other regulatory matters; potential changes in political environment and reduction in federal and/or state funding of our governmental tenants; changes in the financial condition of our tenants directly or indirectly resulting from geopolitical developments that could negatively affect international trade, the termination or threatened termination of existing international trade agreements, or the implementation of tariffs or retaliatory tariffs on imported or exported goods; the effect of any litigation to which we are, or may become, subject; additional risks and costs associated with owning properties occupied by tenants in particular industries, such as oil and gas, hospitality, travel, co-working, etc., including risks of default during start-up and during economic downturns; changes in tax laws impacting REITs and real estate in general, as well as our ability to continue to qualify as a REIT under the Internal Revenue Code of 1986, as amended, or otherwise adversely affect our stockholders; the future effectiveness of our internal controls and procedures; and other factors, including the risk factors discussed under Item 1A. of Piedmont’s most recent Annual Report on Form 10-K and other documents we file with the Securities and Exchange Commission.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this supplemental report. We cannot guarantee the accuracy of any such forward-looking statements contained in this supplemental report, and we do not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

42

XML

Document	Apr. 28, 2021
Cover [Abstract]
Document Type	8-K
Document Period End Date	Apr. 28, 2021
Entity Registrant Name	Piedmont Office Realty Trust, Inc.
Entity File Number	001-34626
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	58-2328421
Entity Address, Address Line One	5565 Glenridge Connector Ste. 450
Entity Address, City or Town	Atlanta
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30342
City Area Code	770
Local Phone Number	418-8800
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	PDM
Security Exchange Name	NYSE
Entity Emerging Growth Company	false
Amendment Flag	false
Entity Central Index Key	0001042776