☒ | Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
☐ |
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from to to
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Maryland
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58-2328421
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||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | ||||
5565 Glenridge Connector Ste. 450, Atlanta, Georgia
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30342
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||||
(Address of principal executive offices) | (Zip Code) |
Title of each class |
Trading Symbol
|
Name of exchange on which registered | ||||||
Common Stock, $0.01 par value
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PDM
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New York Stock Exchange
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FORM 10-K | ||||||||||||||
PIEDMONT OFFICE REALTY TRUST, INC. | ||||||||||||||
TABLE OF CONTENTS | ||||||||||||||
PART I. | Page No. | |||||||||||||
Item 1. | ||||||||||||||
Item 1A. | ||||||||||||||
Item 1B. | ||||||||||||||
Item 2. | ||||||||||||||
Item 3. | ||||||||||||||
Item 4. | ||||||||||||||
PART II. | ||||||||||||||
Item 5. | ||||||||||||||
Item 6. | ||||||||||||||
Item 7. | ||||||||||||||
Item 7A. | ||||||||||||||
Item 8. | ||||||||||||||
Item 9. | ||||||||||||||
Item 9A. | ||||||||||||||
Item 9B. | ||||||||||||||
PART III. | ||||||||||||||
Item 10. | ||||||||||||||
Item 11. | ||||||||||||||
Item 12. | ||||||||||||||
Item 13. | ||||||||||||||
Item 14. | ||||||||||||||
PART IV. | ||||||||||||||
Item 15. | ||||||||||||||
Location |
Annualized
Lease Revenue (in thousands) |
Rentable Square
Feet (in thousands) |
Percentage of
Annualized Lease Revenue (%) |
Percent Leased (%) | |||||||||||||||||||||||||
Dallas | $ | 101,639 | 3,549 | 19.7 | 86.0 | ||||||||||||||||||||||||
Atlanta | 90,783 | 3,388 | 17.6 | 84.9 | |||||||||||||||||||||||||
Washington, D.C. | 70,204 | 1,620 | 13.6 | 82.0 | |||||||||||||||||||||||||
Minneapolis | 65,997 | 2,104 | 12.8 | 93.3 | |||||||||||||||||||||||||
Boston | 58,983 | 1,885 | 11.5 | 91.7 | |||||||||||||||||||||||||
Orlando | 54,404 | 1,754 | 10.6 | 92.3 | |||||||||||||||||||||||||
New York | 50,186 | 1,029 | 9.7 | 93.8 | |||||||||||||||||||||||||
Other (1)
|
22,942 | 1,099 | 4.5 | 66.1 | |||||||||||||||||||||||||
$ | 515,138 | 16,428 | 100.0 | 86.8 |
Year of Lease Expiration |
Annualized
Lease Revenue (in thousands) |
Percentage of
Annualized Lease Revenue (%) |
||||||||||||||||||
Available space | $ | — | — | |||||||||||||||||
2021 | 29,929 | 5.8 | ||||||||||||||||||
2022 | 54,918 | 10.7 | ||||||||||||||||||
2023 | 52,422 | 10.2 | ||||||||||||||||||
2024 | 62,222 | 12.1 | ||||||||||||||||||
2025 | 58,546 | 11.4 | ||||||||||||||||||
2026 | 34,487 | 6.7 | ||||||||||||||||||
2027 | 43,691 | 8.5 | ||||||||||||||||||
2028 | 46,505 | 9.0 | ||||||||||||||||||
2029 | 28,000 | 5.4 | ||||||||||||||||||
2030 | 19,106 | 3.7 | ||||||||||||||||||
2031 | 6,224 | 1.2 | ||||||||||||||||||
2032 | 11,547 | 2.2 | ||||||||||||||||||
Thereafter | 67,541 | 13.1 | ||||||||||||||||||
$ | 515,138 | 100.0 |
As of the year ended December 31, | ||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |||||||||||||||
Piedmont Office Realty Trust, Inc. | $ | 100.00 | $ | 115.62 | $ | 115.73 | $ | 105.20 | $ | 142.99 | $ | 109.42 | ||||||||
FTSE NAREIT Equity Office | $ | 100.00 | $ | 113.17 | $ | 119.11 | $ | 101.84 | $ | 133.83 | $ | 109.16 | ||||||||
FTSE NAREIT Equity REITs | $ | 100.00 | $ | 108.52 | $ | 114.19 | $ | 108.91 | $ | 137.23 | $ | 126.25 | ||||||||
S&P 500 | $ | 100.00 | $ | 111.96 | $ | 136.40 | $ | 130.42 | $ | 171.49 | $ | 203.04 |
Period |
Total Number of
Shares Purchased (in 000’s) |
Average Price Paid
per Share |
Total Number of
Shares Purchased
as Part of
Publicly Announced
Program
(in 000’s) (1)
|
Maximum Approximate
Dollar Value of Shares Available That May Yet Be Purchased Under the Program (in 000’s) |
||||||||||||||||||||||
October 1, 2020 to October 31, 2020 | — | $ | — | — | $ | 200,000 | ||||||||||||||||||||
November 1, 2020 to November 30, 2020 | 1,530 | $ | 13.19 | 1,530 | $ | 179,811 | ||||||||||||||||||||
December 1, 2020 to December 31, 2020 | 660 | $ | 15.87 | 660 | $ | 169,329 |
(1)
|
|||||||||||||||||||
Total | 2,190 | $ | 14.00 | 2,190 |
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||
Statement of Income Data: | |||||||||||||||||||||||||||||
Total revenues | $ | 535,024 | $ | 533,178 | $ | 525,967 | $ | 574,173 | $ | 555,715 | |||||||||||||||||||
Property operating costs | $ | 214,933 | $ | 211,380 | $ | 209,338 | $ | 222,441 | $ | 220,796 | |||||||||||||||||||
Depreciation and amortization | $ | 203,869 | $ | 182,681 | $ | 171,251 | $ | 194,655 | $ | 202,852 | |||||||||||||||||||
Impairment loss on real estate assets | $ | — | $ | 8,953 | $ | — | $ | 46,461 | $ | 33,901 | |||||||||||||||||||
General and administrative expenses | $ | 27,464 | $ | 37,895 | $ | 29,713 | $ | 29,319 | $ | 27,382 | |||||||||||||||||||
Interest and other expense | $ | (61,739) | $ | (60,023) | $ | (61,065) | $ | (63,622) | $ | (64,477) | |||||||||||||||||||
Gain on sale of real estate assets | $ | 205,666 | $ | 197,010 | $ | 75,691 | $ | 115,874 | $ | 93,410 | |||||||||||||||||||
Net income | $ | 232,685 | $ | 229,256 | $ | 130,291 | $ | 133,549 | $ | 99,717 | |||||||||||||||||||
Per-Share Data: | |||||||||||||||||||||||||||||
Per weighted-average common share data: | |||||||||||||||||||||||||||||
Income from continuing operations per share—basic and diluted | $ | 1.85 | $ | 1.82 | $ | 1.00 | $ | 0.92 | $ | 0.69 | |||||||||||||||||||
Cash dividends declared per common share | $ | 0.84 | $ | 0.84 | $ | 0.84 | $ | 1.34 | $ | 0.84 | |||||||||||||||||||
Weighted-average shares outstanding—basic (in thousands) | 125,730 | 125,709 | 130,161 | 145,044 | 145,230 | ||||||||||||||||||||||||
Weighted-average shares outstanding—diluted (in thousands) | 126,104 | 126,182 | 130,636 | 145,380 | 145,635 | ||||||||||||||||||||||||
Balance Sheet Data (at period end): | |||||||||||||||||||||||||||||
Total assets | $ | 3,739,810 | $ | 3,516,757 | $ | 3,592,429 | $ | 3,999,967 | $ | 4,368,168 | |||||||||||||||||||
Total stockholders’ equity | $ | 1,897,961 | $ | 1,818,974 | $ | 1,712,140 | $ | 1,986,489 | $ | 2,097,703 | |||||||||||||||||||
Outstanding debt | $ | 1,622,004 | $ | 1,481,404 | $ | 1,685,472 | $ | 1,726,927 | $ | 2,020,475 | |||||||||||||||||||
NAREIT Funds from Operations Data (1):
|
|||||||||||||||||||||||||||||
GAAP net income applicable to common stock | $ | 232,688 | $ | 229,261 | $ | 130,296 | $ | 133,564 | $ | 99,732 | |||||||||||||||||||
Depreciation and amortization | 202,568 | 181,721 | 170,348 | 193,904 | 202,268 | ||||||||||||||||||||||||
Impairment loss
|
— | 8,953 | — | 46,461 | 33,901 | ||||||||||||||||||||||||
Gain on sale- wholly-owned properties and unconsolidated partnerships
|
(205,666) | (197,010) | (75,691) | (119,557) | (93,410) | ||||||||||||||||||||||||
NAREIT Funds From Operations applicable to common stock (1)
|
$ | 229,590 | $ | 222,925 | $ | 224,953 | $ | 254,372 | $ | 242,491 | |||||||||||||||||||
Retirement and separation expenses associated with senior management transition in June 2019
|
— | 3,175 | — | — | — | ||||||||||||||||||||||||
Acquisition costs | — | — | — | 6 | 976 | ||||||||||||||||||||||||
Loss on extinguishment of debt | 9,336 | — | 1,680 | — | — | ||||||||||||||||||||||||
Net recoveries of casualty loss and litigation settlements | — | — | — | — | (34) | ||||||||||||||||||||||||
Core Funds From Operations applicable to common stock (1)
|
$ | 238,926 | $ | 226,100 | $ | 226,633 | $ | 254,378 | $ | 243,433 | |||||||||||||||||||
Amortization of debt issuance costs, fair market adjustments on notes payable, and discount on Senior Notes
|
2,833 | 2,101 | 2,083 | 2,496 | 2,610 | ||||||||||||||||||||||||
Depreciation of non real estate assets | 1,216 | 872 | 813 | 809 | 841 | ||||||||||||||||||||||||
Straight-line effects of lease revenue and net effect of amortization of below-market in-place lease intangibles
|
(34,885) | (18,734) | (21,595) | (28,067) | (26,609) | ||||||||||||||||||||||||
Stock-based compensation adjustments | 7,014 | 5,030 | 7,528 | 6,139 | 5,620 | ||||||||||||||||||||||||
Acquisition costs | — | — | — | (6) | (976) | ||||||||||||||||||||||||
Non-incremental capital expenditures | (77,682) | (49,653) | (44,004) | (35,437) | (35,568) | ||||||||||||||||||||||||
Adjusted Funds From Operations applicable to common stock (1)
|
$ | 137,422 | $ | 165,716 | $ | 171,458 | $ | 200,312 | $ | 189,351 |
December 31, 2020 | December 31, 2019 | ||||||||||
Capital expenditures for redevelopment/ renovations | $ | 18,600 | $ | 11,901 | |||||||
Other capital expenditures, including building and tenant improvements | 93,980 | 91,652 | |||||||||
Total capital expenditures (1)
|
$ | 112,580 | $ | 103,553 |
December 31, 2020 | % of Revenues | December 31, 2019 | % of Revenues | Variance | |||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||
Rental and tenant reimbursement revenue | $ | 519.9 | $ | 511.9 | $ | 8.0 | |||||||||||||||||||||||
Property management fee revenue | 2.9 | 3.4 | (0.5) | ||||||||||||||||||||||||||
Other property related income | 12.2 | 17.9 | (5.7) | ||||||||||||||||||||||||||
Total revenues | 535.0 | 100 | % | 533.2 | 100 | % | 1.8 | ||||||||||||||||||||||
Expense: | |||||||||||||||||||||||||||||
Property operating costs | 214.9 | 40 | % | 211.4 | 40 | % | 3.5 | ||||||||||||||||||||||
Depreciation | 110.6 | 21 | % | 106.0 | 19 | % | 4.6 | ||||||||||||||||||||||
Amortization | 93.3 | 17 | % | 76.7 | 14 | % | 16.6 | ||||||||||||||||||||||
Impairment losses on real estate assets | — | — | % | 8.9 | 2 | % | (8.9) | ||||||||||||||||||||||
General and administrative | 27.5 | 5 | % | 37.9 | 7 | % | (10.4) | ||||||||||||||||||||||
446.3 | 440.9 | 5.4 | |||||||||||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||||||||
Interest expense | (55.0) | 10 | % | (61.6) | 12 | % | 6.6 | ||||||||||||||||||||||
Other income | 2.6 | — | % | 1.6 | — | % | 1.0 | ||||||||||||||||||||||
Loss on extinguishment of debt | (9.3) | 2 | % | — | — | % | (9.3) | ||||||||||||||||||||||
Gain on sale of real estate assets | 205.7 | 38 | % | 197.0 | 37 | % | 8.7 | ||||||||||||||||||||||
Net income | $ | 232.7 | 43 | % | $ | 229.3 | 43 | % | $ | 3.4 | |||||||||||||||||||
Combined Balances of Piedmont OP and Piedmont Office Realty Trust, Inc. as Issuer and Guarantor, respectively |
As of
December 31, 2020
|
As of
December 31, 2019
|
|||||||||
Due from non-guarantor subsidiary | $ | 810 | $ | 810 | |||||||
Total assets | $ | 347,757 | $ | 364,734 | |||||||
Total liabilities | $ | 1,654,009 | $ | 1,343,881 | |||||||
For the Year Ended December 31, 2020
|
|||||||||||
Total revenues | $ | 43,193 | |||||||||
Net loss | $ | (50,803) |
Years Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
Dallas | $ | 59,845 | $ | 29,438 | |||||||
Atlanta | 60,276 | 47,287 | |||||||||
Washington, D.C. | 36,696 | 41,167 | |||||||||
Minneapolis | 33,588 | 35,610 | |||||||||
Boston | 41,722 | 44,016 | |||||||||
Orlando | 34,427 | 35,433 | |||||||||
New York | 38,990 | 44,036 | |||||||||
Total reportable segments | 305,544 | 276,987 | |||||||||
Corporate and other | 13,915 | 43,637 | |||||||||
Total NOI | $ | 319,459 | $ | 320,624 |
2020 |
Per
Share (1)
|
2019 |
Per
Share(1)
|
2018 |
Per
Share(1)
|
||||||||||||||||||||||||||||||
GAAP net income applicable to common stock | $ | 232,688 | $ | 1.85 | $ | 229,261 | $ | 1.82 | $ | 130,296 | $ | 1.00 | |||||||||||||||||||||||
Depreciation of real assets
|
109,326 | 0.86 | 105,111 | 0.83 | 107,113 | 0.82 | |||||||||||||||||||||||||||||
Amortization of lease-related costs
|
93,242 | 0.74 | 76,610 | 0.61 | 63,235 | 0.48 | |||||||||||||||||||||||||||||
Impairment loss on real estate assets
|
— | — | 8,953 | 0.07 | — | — | |||||||||||||||||||||||||||||
Gain on sale- wholly-owned properties
|
(205,666) | (1.63) | (197,010) | (1.56) | (75,691) | (0.58) | |||||||||||||||||||||||||||||
NAREIT Funds From Operations applicable to common stock
|
$ | 229,590 | $ | 1.82 | $ | 222,925 | $ | 1.77 | $ | 224,953 | $ | 1.72 | |||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||||||
Retirement and separation expenses associated with senior management transition in June 2019
|
— | — | 3,175 | 0.02 | — | — | |||||||||||||||||||||||||||||
Loss on extinguishment of debt
|
9,336 | 0.07 | — | — | 1,680 | 0.01 | |||||||||||||||||||||||||||||
Core Funds From Operations applicable to common stock
|
$ | 238,926 | $ | 1.89 | $ | 226,100 | $ | 1.79 | $ | 226,633 | $ | 1.73 | |||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||||||
Amortization of debt issuance costs, fair market adjustments on notes payable, and discounts on debt
|
2,833 | 2,101 | 2,083 | ||||||||||||||||||||||||||||||||
Depreciation of non real estate assets
|
1,216 | 872 | 813 | ||||||||||||||||||||||||||||||||
Straight-line effects of lease revenue
|
(22,601) | (10,411) | (13,980) | ||||||||||||||||||||||||||||||||
Stock-based compensation adjustments
|
7,014 | 5,030 | 7,528 | ||||||||||||||||||||||||||||||||
Net effect of amortization of above and below-market in-place lease intangibles
|
(12,284) | (8,323) | (7,615) | ||||||||||||||||||||||||||||||||
Non-incremental capital expenditures (2)
|
(77,682) | (49,653) | (44,004) | ||||||||||||||||||||||||||||||||
Adjusted Funds From Operations applicable to common stock
|
$ | 137,422 | $ | 165,716 | $ | 171,458 | |||||||||||||||||||||||||||||
Weighted-average shares outstanding – diluted | 126,104 | 126,182 | 130,636 |
Cash Basis | Accrual Basis | ||||||||||||||||||||||
December 31,
2020 |
December 31,
2019 |
December 31,
2020 |
December 31,
2019 |
||||||||||||||||||||
Net income applicable to Piedmont (GAAP basis) | $ | 232,688 | $ | 229,261 | $ | 232,688 | $ | 229,261 | |||||||||||||||
Net loss applicable to noncontrolling interest
|
(3) | (5) | (3) | (5) | |||||||||||||||||||
Interest expense
|
54,990 | 61,594 | 54,990 | 61,594 | |||||||||||||||||||
Depreciation
|
110,542 | 105,985 | 110,542 | 105,985 | |||||||||||||||||||
Amortization
|
93,242 | 76,610 | 93,242 | 76,610 | |||||||||||||||||||
Depreciation and amortization attributable to noncontrolling interests | 85 | 87 | 85 | 87 | |||||||||||||||||||
Impairment loss on real estate assets
|
— | 8,953 | — | 8,953 | |||||||||||||||||||
Gain on sale of real estate assets
|
(205,666) | (197,010) | (205,666) | (197,010) | |||||||||||||||||||
EBITDAre(1)
|
285,878 | 285,475 | 285,878 | 285,475 | |||||||||||||||||||
Loss on extinguishment of debt
|
9,336 | — | 9,336 | — | |||||||||||||||||||
Retirement and separation expenses associated with senior management transition in June 2019
|
— | 3,175 | — | 3,175 | |||||||||||||||||||
Core EBITDA(2)
|
295,214 | 288,650 | 295,214 | 288,650 | |||||||||||||||||||
General & administrative expenses
|
27,464 | 34,720 | 27,464 | 34,720 | |||||||||||||||||||
Management fee revenue(3)
|
(1,495) | (2,518) | (1,495) | (2,518) | |||||||||||||||||||
Other income
|
(1,724) | (228) | (1,724) | (228) | |||||||||||||||||||
Non-cash general reserve for uncollectible accounts | 4,553 | — | |||||||||||||||||||||
Straight-line rent effects of lease revenue
|
(22,601) | (10,411) | |||||||||||||||||||||
Straight-line effects of lease revenue attributable to noncontrolling interests | (16) | (9) | |||||||||||||||||||||
Amortization of lease-related intangibles
|
(12,284) | (8,323) | |||||||||||||||||||||
Property NOI | 289,111 | 301,881 | 319,459 | 320,624 | |||||||||||||||||||
Net operating income from:
|
|||||||||||||||||||||||
Acquisitions(4)
|
(40,696) | (8,229) | (52,448) | (10,769) | |||||||||||||||||||
Dispositions(5)
|
(21,049) | (61,423) | (22,113) | (63,730) | |||||||||||||||||||
Other investments(6)
|
(248) | (1,204) | (340) | (1,142) | |||||||||||||||||||
Same Store NOI | $ | 227,118 | $ | 231,025 | $ | 244,558 | $ | 244,983 | |||||||||||||||
Change period over period in Same Store NOI | (1.7) | % | N/A | (0.2) | % | N/A |
Payments Due by Period | ||||||||||||||||||||||||||||||||
Contractual Obligations (1)
|
Total |
Less than
1 year |
1-3 years | 3-5 years |
More than
5 years |
|||||||||||||||||||||||||||
Long-term debt (2)
|
$ | 1,632,610 | $ | 327,610 | $ | 355,000 |
(3)
|
$ | 650,000 | $ | 300,000 | |||||||||||||||||||||
2021 | 2022 | 2023 | 2024 | 2025 | Thereafter | Total | |||||||||||||||||||||||||||||||||||
Maturing debt: | |||||||||||||||||||||||||||||||||||||||||
Variable rate repayments | $ | 300,000 | $ | 5,000 |
(2)
|
$ | — | $ | — |
|
$ | 150,000 |
(3)
|
$ | — | $ | 455,000 | ||||||||||||||||||||||||
Variable rate average interest rate (1)
|
1.16 | % | 1.05 | % | — | % | — | % | 1.10 | % | — | % | 1.14 | % | |||||||||||||||||||||||||||
Fixed rate repayments | $ | 27,610 | $ | — | $ | 350,000 | $ | 400,000 | $ | 100,000 |
(3)
|
$ | 300,000 | $ | 1,177,610 | ||||||||||||||||||||||||||
Fixed rate average interest rate (1)
|
5.55 | % | — | % | 3.40 | % | 4.45 | % | 3.56 | % | 3.15 | % | 3.76 | % |
2020 | 2021 | 2022 | 2023 | 2024 | Thereafter | Total | |||||||||||||||||||||||||||||||||||
Maturing debt: | |||||||||||||||||||||||||||||||||||||||||
Variable rate repayments | $ | — |
|
$ | — |
|
$ | — |
(3)
|
$ | — | $ | — | $ | 100,000 |
(4)
|
$ | 100,000 | |||||||||||||||||||||||
Variable rate average interest rate (1)
|
— | % | — | % | — | % | — | % | — | % | 3.40 | % | 3.40 | % | |||||||||||||||||||||||||||
Fixed rate repayments | $ | 985 | $ | 327,702 |
(2)
|
$ | 160,000 | $ | 350,000 | $ | 400,000 | $ | 150,000 |
(4)
|
$ | 1,388,687 | |||||||||||||||||||||||||
Fixed rate average interest rate (1)
|
5.55 | % | 3.40 | % | 3.48 | % | 3.40 | % | 4.45 | % | 4.11 | % | 3.79 | % |
Piedmont Office Realty Trust, Inc. | ||||||||
(Registrant) | ||||||||
By: |
/s/ C. BRENT SMITH
|
|||||||
C. Brent Smith | ||||||||
Chief Executive Officer, Principal Executive Officer, and Director |
Signature | Title | Date | |||||||||
/s/ FRANK C. MCDOWELL
|
Chairman, and Director | February 17, 2021 | |||||||||
Frank C. McDowell | |||||||||||
/s/ DALE H. TAYSOM
|
Vice-Chairman, and Director | February 17, 2021 | |||||||||
Dale H. Taysom | |||||||||||
/s/ KELLY H. BARRETT
|
Director | February 17, 2021 | |||||||||
Kelly H. Barrett | |||||||||||
/s/ WESLEY E. CANTRELL
|
Director | February 17, 2021 | |||||||||
Wesley E. Cantrell | |||||||||||
/s/ GLENN G. COHEN
|
Director | February 17, 2021 | |||||||||
Glenn G. Cohen | |||||||||||
/s/ BARBARA B. LANG
|
Director | February 17, 2021 | |||||||||
Barbara B. Lang | |||||||||||
/s/ JEFFREY L. SWOPE
|
Director | February 17, 2021 | |||||||||
Jeffrey L. Swope | |||||||||||
/s/ C. BRENT SMITH
|
Chief Executive Officer and Director | February 17, 2021 | |||||||||
C. Brent Smith | (Principal Executive Officer) | ||||||||||
/s/ ROBERT E. BOWERS
|
Chief Financial Officer and Executive Vice-President | February 17, 2021 | |||||||||
Robert E. Bowers | (Principal Financial Officer) | ||||||||||
/s/ LAURA P. MOON
|
Chief Accounting Officer | February 17, 2021 | |||||||||
Laura P. Moon | (Principal Accounting Officer) | ||||||||||
Exhibit Number | Description of Document | ||||||||||
3.1 | |||||||||||
3.2 | |||||||||||
3.3 | |||||||||||
3.4 | |||||||||||
3.5 | |||||||||||
3.6 | |||||||||||
4.1 | |||||||||||
4.2 | |||||||||||
4.3 | |||||||||||
4.4 | |||||||||||
4.5 | |||||||||||
4.6 | |||||||||||
4.7 | |||||||||||
4.8 | |||||||||||
10.1 | |||||||||||
10.2 | |||||||||||
10.3 | |||||||||||
10.4 | |||||||||||
10.5* | |||||||||||
10.6* | |||||||||||
10.7* | |||||||||||
10.8* | |||||||||||
10.9* | |||||||||||
10.10* | |||||||||||
10.11* | |||||||||||
10.12* | |||||||||||
10.13* | |||||||||||
10.14* | |||||||||||
10.15* | |||||||||||
10.16* | |||||||||||
10.17* | |||||||||||
10.18* | |||||||||||
10.19* | |||||||||||
10.20 | |||||||||||
10.21 | |||||||||||
10.22 | |||||||||||
10.23 | |||||||||||
10.24* | |||||||||||
10.25* | |||||||||||
10.26* | |||||||||||
10.27 | |||||||||||
10.28 | |||||||||||
10.29 | |||||||||||
10.30 | |||||||||||
10.31* | |||||||||||
10.32* | |||||||||||
10.33 | |||||||||||
10.34 | |||||||||||
10.35 | |||||||||||
10.36* | |||||||||||
10.37* | |||||||||||
10.38* | |||||||||||
21.1 | |||||||||||
22.1 | |||||||||||
23.1 | |||||||||||
31.1 | |||||||||||
31.2 | |||||||||||
32.1 | |||||||||||
32.2 | |||||||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | ||||||||||
101.SCH | XBRL Taxonomy Extension Schema | ||||||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase | ||||||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase | ||||||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase | ||||||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase | ||||||||||
104.1 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
Financial Statements | Page | ||||
Financial Statement Schedule | |||||
December 31, 2020 | December 31, 2019 | ||||||||||
Assets: | |||||||||||
Real estate assets, at cost: | |||||||||||
Land | $ | 484,466 | $ | 485,560 | |||||||
Buildings and improvements, less accumulated depreciation of $767,542 and $730,750 as of December 31, 2020 and December 31, 2019, respectively
|
2,424,225 | 2,212,935 | |||||||||
Intangible lease assets, less accumulated amortization of $67,850 and $50,766 as of December 31, 2020 and December 31, 2019, respectively
|
90,594 | 74,405 | |||||||||
Construction in progress | 56,749 | 29,920 | |||||||||
Real estate assets held for sale, net | — | 139,690 | |||||||||
Total real estate assets | 3,056,034 | 2,942,510 | |||||||||
Cash and cash equivalents | 7,331 | 13,545 | |||||||||
Tenant receivables, net of allowance for doubtful accounts of $4,553 and $0 as of December 31, 2020 and December 31, 2019, respectively
|
8,448 | 8,226 | |||||||||
Straight-line rent receivables | 151,153 | 132,342 | |||||||||
Notes receivable | 118,500 | — | |||||||||
Restricted cash and escrows | 1,883 | 1,841 | |||||||||
Prepaid expenses and other assets | 23,277 | 25,427 | |||||||||
Goodwill | 98,918 | 98,918 | |||||||||
Deferred lease costs, less accumulated amortization of $172,619 and $147,324 as of December 31, 2020 and December 31, 2019, respectively
|
274,266 | 265,747 | |||||||||
Other assets held for sale, net | — | 28,201 | |||||||||
Total assets | $ | 3,739,810 | $ | 3,516,757 | |||||||
Liabilities: | |||||||||||
Unsecured debt, net of discount and unamortized debt issuance costs of $10,932 and $7,626 as of December 31, 2020 and December 31, 2019, respectively
|
$ | 1,594,068 | $ | 1,292,374 | |||||||
Secured debt, inclusive of premiums and unamortized debt issuance costs of $326 and $343 as of December 31, 2020 and December 31, 2019, respectively
|
27,936 | 189,030 | |||||||||
Accounts payable, accrued expenses, and accrued capital expenditures | 111,997 | 117,496 | |||||||||
Dividends payable | 25,683 | 26,427 | |||||||||
Deferred income | 36,891 | 34,609 | |||||||||
Intangible lease liabilities, less accumulated amortization of $27,344 and $19,607 as of December 31, 2020 and December 31, 2019, respectively
|
35,440 | 25,069 | |||||||||
Interest rate swaps | 9,834 | 5,121 | |||||||||
Other liabilities held for sale | — | 7,657 | |||||||||
Total liabilities | 1,841,849 | 1,697,783 | |||||||||
— | — | ||||||||||
Stockholders’ Equity: | |||||||||||
Shares-in-trust, 150,000,000 shares authorized, none outstanding as of December 31, 2020 or December 31, 2019
|
— | — | |||||||||
Preferred stock, no par value, 100,000,000 shares authorized, none outstanding as of December 31, 2020 or December 31, 2019
|
— | — | |||||||||
Common stock, $0.01 par value; 750,000,000 shares authorized, 123,839,419 shares issued and outstanding as of December 31, 2020; and 125,783,408 shares issued and outstanding at December 31, 2019
|
1,238 | 1,258 | |||||||||
Additional paid-in capital | 3,693,996 | 3,686,398 | |||||||||
Cumulative distributions in excess of earnings | (1,774,856) | (1,871,375) | |||||||||
Other comprehensive income/(loss) | (24,100) | 967 | |||||||||
Piedmont stockholders’ equity | 1,896,278 | 1,817,248 | |||||||||
Noncontrolling interest | 1,683 | 1,726 | |||||||||
Total stockholders’ equity | 1,897,961 | 1,818,974 | |||||||||
Total liabilities and stockholders’ equity | $ | 3,739,810 | $ | 3,516,757 |
Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Revenues: | |||||||||||||||||
Rental and tenant reimbursement revenue | $ | 519,953 | $ | 511,905 | $ | 504,410 | |||||||||||
Property management fee revenue | 2,867 | 3,398 | 1,450 | ||||||||||||||
Other property related income | 12,204 | 17,875 | 20,107 | ||||||||||||||
535,024 | 533,178 | 525,967 | |||||||||||||||
Expenses: | |||||||||||||||||
Property operating costs | 214,933 | 211,380 | 209,338 | ||||||||||||||
Depreciation | 110,575 | 106,015 | 107,956 | ||||||||||||||
Amortization | 93,294 | 76,666 | 63,295 | ||||||||||||||
Impairment loss on real estate assets | — | 8,953 | — | ||||||||||||||
General and administrative | 27,464 | 37,895 | 29,713 | ||||||||||||||
446,266 | 440,909 | 410,302 | |||||||||||||||
Other income (expense): | |||||||||||||||||
Interest expense | (54,990) | (61,594) | (61,023) | ||||||||||||||
Other income | 2,587 | 1,571 | 1,638 | ||||||||||||||
Loss on extinguishment of debt | (9,336) | — | (1,680) | ||||||||||||||
Gain on sale of real estate assets | 205,666 | 197,010 | 75,691 | ||||||||||||||
143,927 | 136,987 | 14,626 | |||||||||||||||
Net income | 232,685 | 229,256 | 130,291 | ||||||||||||||
Net loss applicable to noncontrolling interest | 3 | 5 | 5 | ||||||||||||||
Net income applicable to Piedmont | $ | 232,688 | $ | 229,261 | $ | 130,296 | |||||||||||
Per share information— basic and diluted: | |||||||||||||||||
Net income applicable to common stockholders | $ | 1.85 | $ | 1.82 | $ | 1.00 | |||||||||||
Weighted-average shares outstanding—basic | 125,730,460 | 125,709,207 | 130,161,202 | ||||||||||||||
Weighted-average shares outstanding—diluted | 126,104,321 | 126,182,137 | 130,635,650 |
Years Ended December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
Net income applicable to Piedmont | $ | 232,688 | $ | 229,261 | $ | 130,296 | |||||||||||||||||||||||||||||
Other comprehensive income/(loss): | |||||||||||||||||||||||||||||||||||
Effective portion of gain/(loss) on derivative instruments that are designated and qualify as cash flow hedges (See Note 5)
|
(26,794) | (5,659) | 692 | ||||||||||||||||||||||||||||||||
1,727 | (1,836) | (300) | |||||||||||||||||||||||||||||||||
Other comprehensive income/(loss) | (25,067) | (7,495) | 392 | ||||||||||||||||||||||||||||||||
Comprehensive income applicable to Piedmont
|
$ | 207,621 | $ | 221,766 | $ | 130,688 |
Common Stock |
Additional
Paid-In Capital |
Cumulative
Distributions in Excess of Earnings |
Other
Comprehensive Income/(Loss) |
Noncontrolling
Interest |
Total
Stockholders’ Equity |
||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2017 | 142,359 | $ | 1,424 | $ | 3,677,360 | $ | (1,702,281) | $ | 8,164 | $ | 1,822 | $ | 1,986,489 | ||||||||||||||||||||||||||||
Cumulative effect of accounting change (adoption of ASU 2016-01) | — | — | — | 94 | (94) | — | — | ||||||||||||||||||||||||||||||||||
Share repurchases as part of announced plan | (16,495) | (165) | — | (301,513) | — | — | (301,678) | ||||||||||||||||||||||||||||||||||
Offering costs | — | — | (85) | — | — | — | (85) | ||||||||||||||||||||||||||||||||||
Dividends to common stockholders ($0.84 per share), stockholders of subsidiaries, and dividends reinvested
|
— | — | (82) | (109,138) | — | (45) | (109,265) | ||||||||||||||||||||||||||||||||||
Shares issued and amortized under the 2007 Omnibus Incentive Plan, net of tax | 355 | 3 | 5,993 | — | — | — | 5,996 | ||||||||||||||||||||||||||||||||||
Net loss applicable to noncontrolling interest | — | — | — | — | — | (5) | (5) | ||||||||||||||||||||||||||||||||||
Net income applicable to Piedmont | — | — | — | 130,296 | — | — | 130,296 | ||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 392 | — | 392 | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2018 | 126,219 | 1,262 | 3,683,186 | (1,982,542) | 8,462 | 1,772 | 1,712,140 | ||||||||||||||||||||||||||||||||||
Share repurchases as part of announced plan | (728) | (7) | — | (12,475) | — | — | (12,482) | ||||||||||||||||||||||||||||||||||
Offering costs | — | — | (710) | — | — | — | (710) | ||||||||||||||||||||||||||||||||||
Dividends to common stockholders ($0.84 per share), stockholders of subsidiaries, and dividends reinvested
|
— | — | (228) | (105,619) | — | (41) | (105,888) | ||||||||||||||||||||||||||||||||||
Shares issued and amortized under the 2007 Omnibus Incentive Plan, net of tax | 292 | 3 | 4,150 | — | — | — | 4,153 | ||||||||||||||||||||||||||||||||||
Net loss applicable to noncontrolling interest | — | — | — | — | — | (5) | (5) | ||||||||||||||||||||||||||||||||||
Net income applicable to Piedmont | — | — | — | 229,261 | — | — | 229,261 | ||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (7,495) | — | (7,495) | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2019 | 125,783 | 1,258 | 3,686,398 | (1,871,375) | 967 | 1,726 | 1,818,974 | ||||||||||||||||||||||||||||||||||
Share repurchases as part of announced plan | (2,190) | (22) | — | (30,649) | — | — | (30,671) | ||||||||||||||||||||||||||||||||||
Dividends to common stockholders ($0.84 per share), stockholders of subsidiaries, and dividends reinvested
|
— | — | (5) | (105,520) | — | (40) | (105,565) | ||||||||||||||||||||||||||||||||||
Shares issued and amortized under the 2007 Omnibus Incentive Plan, net of tax | 246 | 2 | 7,603 | — | — | — | 7,605 | ||||||||||||||||||||||||||||||||||
Net loss applicable to noncontrolling interest | — | — | — | — | — | (3) | (3) | ||||||||||||||||||||||||||||||||||
Net income applicable to Piedmont | — | — | — | 232,688 | — | — | 232,688 | ||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (25,067) | — | (25,067) | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2020 | 123,839 | $ | 1,238 | $ | 3,693,996 | $ | (1,774,856) | $ | (24,100) | $ | 1,683 | $ | 1,897,961 |
Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Cash Flows from Operating Activities: | |||||||||||||||||
Net income | $ | 232,685 | $ | 229,256 | $ | 130,291 | |||||||||||
Operating distributions received from unconsolidated joint ventures | — | — | 10 | ||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
|||||||||||||||||
Depreciation | 110,575 | 106,015 | 107,956 | ||||||||||||||
Amortization of debt issuance costs net of favorable settlement of interest rate swaps
|
2,080 | 87 | (250) | ||||||||||||||
Other amortization | 84,534 | 71,609 | 58,330 | ||||||||||||||
Impairment loss on real estate assets | — | 8,953 | — | ||||||||||||||
Loss on extinguishment of debt | 349 | — | 1,665 | ||||||||||||||
General reserve for uncollectible accounts | 4,553 | — | — | ||||||||||||||
Stock compensation expense | 9,718 | 15,446 | 9,737 | ||||||||||||||
Gain on sale of real estate assets | (205,666) | (197,010) | (75,691) | ||||||||||||||
Changes in assets and liabilities: | |||||||||||||||||
Increase in tenant and straight-line rent receivables
|
(30,887) | (15,706) | (16,094) | ||||||||||||||
Decrease/(increase) in prepaid expenses and other assets
|
823 | 309 | (3,095) | ||||||||||||||
Cash paid upon settlement of interest rate swaps | (19,930) | — | — | ||||||||||||||
Increase/(decrease) in accounts payable and accrued expenses
|
6,264 | (11,251) | (9,092) | ||||||||||||||
(Decrease)/increase in deferred income
|
(1,814) | 776 | (898) | ||||||||||||||
Net cash provided by operating activities
|
193,284 | 208,484 | 202,869 | ||||||||||||||
Cash Flows from Investing Activities: | |||||||||||||||||
Acquisition of real estate assets and intangibles | (417,056) | (326,200) | (151,914) | ||||||||||||||
Capitalized expenditures | (112,580) | (103,553) | (72,105) | ||||||||||||||
Sales proceeds from wholly-owned properties
|
360,094 | 589,767 | 575,227 | ||||||||||||||
Note receivable issuance
|
— | — | (3,200) | ||||||||||||||
Note receivable repayment
|
— | — | 3,200 | ||||||||||||||
Deferred lease costs paid | (28,334) | (25,639) | (27,430) | ||||||||||||||
Net cash (used in)/provided by investing activities
|
(197,876) | 134,375 | 323,778 | ||||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||
Debt issuance and other costs paid | (1,363) | (151) | (1,040) | ||||||||||||||
Proceeds from debt | 1,174,383 | 592,000 | 977,062 | ||||||||||||||
Repayments of debt | (1,035,077) | (798,019) | (1,020,455) | ||||||||||||||
Discount paid due to loan modification | (525) | — | — | ||||||||||||||
Costs of issuance of common stock | — | (710) | (85) | ||||||||||||||
Value of shares withheld for payment of taxes related to employee stock compensation
|
(2,703) | (3,295) | (2,219) | ||||||||||||||
Repurchases of common stock as part of announced plan | (29,986) | (16,899) | (298,538) | ||||||||||||||
Dividends paid and discount on dividend reinvestments
|
(106,309) | (106,433) | (184,093) | ||||||||||||||
Net cash used in financing activities
|
(1,580) | (333,507) | (529,368) | ||||||||||||||
Net (decrease)/increase in cash, cash equivalents, and restricted cash and escrows
|
(6,172) | 9,352 | (2,721) | ||||||||||||||
Cash, cash equivalents, and restricted cash and escrows, beginning of year | 15,386 | 6,034 | 8,755 | ||||||||||||||
Cash, cash equivalents, and restricted cash and escrows, end of year | $ | 9,214 | $ | 15,386 | $ | 6,034 |
Buildings |
40 years
|
||||
Building improvements |
5-25 years
|
||||
Land improvements |
20-25 years
|
||||
Tenant allowances | Lease term | ||||
Furniture, fixtures, and equipment |
3-10 years
|
||||
Intangible lease assets | Lease term |
December 31, 2020 | December 31, 2019 | ||||||||||
Intangible Lease Assets: | |||||||||||
Above-Market In-Place Lease Assets | $ | 2,167 | $ | 2,082 | |||||||
In-Place Lease Valuation | $ | 156,277 | $ | 157,101 | |||||||
Intangible Lease Origination Costs (included as component of Deferred Lease Costs) | $ | 250,367 | $ | 256,627 | |||||||
Intangible Lease Liabilities (Below-Market In-Place Leases) | $ | 62,784 | $ | 84,292 |
2020 | 2019 | 2018 | |||||||||||||||
Amortization of Intangible Lease Origination Costs and In-Place Lease Valuation included in amortization expense | $ | 77,000 | $ | 62,413 | $ | 48,940 | |||||||||||
Amortization of Above-Market and Below-Market In-Place Lease intangibles as a net increase to rental revenues | $ | 12,191 | $ | 8,322 | $ | 7,615 |
Intangible Lease Assets | |||||||||||||||||||||||
Above-Market
In-place Lease Assets |
In-Place Lease Valuation |
Intangible Lease
Origination Costs (1)
|
Below-Market
In-place Lease Liabilities |
||||||||||||||||||||
For the year ending December 31: | |||||||||||||||||||||||
2021 | $ | 420 | $ | 27,520 | $ | 38,659 | $ | 10,899 | |||||||||||||||
2022 | 300 | 20,662 | 30,447 | 8,422 | |||||||||||||||||||
2023 | 103 | 13,922 | 21,019 | 5,139 | |||||||||||||||||||
2024 | 70 | 9,140 | 14,462 | 3,238 | |||||||||||||||||||
2025 | 6 | 5,657 | 10,069 | 2,072 | |||||||||||||||||||
Thereafter | 18 | 12,776 | 24,881 | 5,670 | |||||||||||||||||||
$ | 917 | $ | 89,677 | $ | 139,537 | $ | 35,440 | ||||||||||||||||
Weighted-Average Amortization Period (in years) | 3 | 5 | 5 | 5 |
Property | Metropolitan Statistical Area | Date of Acquisition | Ownership Percentage Acquired | Rentable Square Feet | Percentage Leased as of Acquisition |
Net Contractual Purchase Price
(in millions) |
|||||||||||||||||||||||||||||||||||
Dallas Galleria Office Towers | Dallas, Texas | February 12, 2020 | 100% | 1,435,466 | 95% | $396.2 |
(1)
|
||||||||||||||||||||||||||||||||||
222 South Orange Avenue | Orlando, Florida | October 29, 2020 | 100% | 127,248 | —% | $20.0 |
(2)
|
||||||||||||||||||||||||||||||||||
Dallas Galleria Office Towers and Undeveloped Land | |||||
Land | $ | 19,674 | |||
Building and improvements | 293,760 | ||||
Intangible lease assets (1)
|
49,177 | ||||
Lease acquisition costs, net of tenant credits received from seller (1)
|
1,344 | ||||
Intangible lease origination costs (1)
|
55,060 | ||||
Intangible lease liabilities (1)
|
(22,169) | ||||
Total purchase price
|
$ | 396,846 |
Facility (1)
|
Stated Rate |
Effective Rate (2)
|
Maturity | Amount Outstanding as of | ||||||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||||||||||
Secured (Fixed) | ||||||||||||||||||||||||||||||||
$35 Million Fixed-Rate Loan (3)
|
5.55 | % | 3.75 | % | 9/1/2021 | $ | 27,610 | $ | 28,687 | |||||||||||||||||||||||
$160 Million Fixed-Rate Loan (4)
|
3.48 | % | 3.58 | % | 7/5/2022 | — | 160,000 | |||||||||||||||||||||||||
Net premium and unamortized debt issuance costs
|
326 | 343 | ||||||||||||||||||||||||||||||
Subtotal/Weighted Average (5)
|
5.55 | % | 27,936 | 189,030 | ||||||||||||||||||||||||||||
Unsecured (Variable and Fixed) | ||||||||||||||||||||||||||||||||
Amended and Restated $300 Million Unsecured 2011 Term Loan
|
LIBOR + 1.00%
|
1.16 | % |
|
11/30/2021 | 300,000 | 300,000 | |||||||||||||||||||||||||
$500 Million Unsecured 2018 Line of Credit (6)
|
LIBOR + 0.90%
|
1.05 | % | 9/30/2022 |
(7)
|
5,000 | — | |||||||||||||||||||||||||
$350 Million Unsecured Senior Notes
|
3.40 | % | 3.43 | % | 6/01/2023 | 350,000 | 350,000 | |||||||||||||||||||||||||
$400 Million Unsecured Senior Notes
|
4.45 | % | 4.10 | % | 3/15/2024 | 400,000 | 400,000 | |||||||||||||||||||||||||
$250 Million Unsecured 2018 Term Loan
|
LIBOR + 0.95%
|
2.08 | % |
(8)
|
3/31/2025 | 250,000 | 250,000 | |||||||||||||||||||||||||
$300 Million Unsecured Senior Notes
|
3.15 | % | 3.90 | % |
(9)
|
8/15/2030 | 300,000 | — | ||||||||||||||||||||||||
Discounts and unamortized debt issuance costs
|
(10,932) | (7,626) | ||||||||||||||||||||||||||||||
Subtotal/Weighted Average (5)
|
2.98 | % | 1,594,068 | 1,292,374 | ||||||||||||||||||||||||||||
Total/Weighted Average (5)
|
3.03 | % | $ | 1,622,004 | $ | 1,481,404 |
2021 | $ | 327,610 | |||
2022 | 5,000 | ||||
2023 | 350,000 | ||||
2024 | 400,000 | ||||
2025 | 250,000 | ||||
Thereafter | 300,000 | ||||
Total | $ | 1,632,610 |
Interest Rate Derivatives: | Number of Swap Agreements | Associated Debt Instrument |
Notional Amount
(in millions) |
Effective Date | Maturity Date | |||||||||||||||||||||||||||
Interest rate swaps | 2 |
$250 Million Unsecured 2018 Term Loan
|
$ | 100 | 3/29/2018 | 3/31/2025 | ||||||||||||||||||||||||||
Interest rate swaps classified as: | December 31, 2020 | December 31, 2019 | |||||||||
Gross derivative assets | $ | — | $ | — | |||||||
Gross derivative liabilities | (9,834) | (5,121) | |||||||||
Net derivative liability | $ | (9,834) | $ | (5,121) |
Interest Rate Swaps in Cash Flow Hedging Relationships: | 2020 | 2019 | 2018 | ||||||||||||||
Amount of gain/(loss) recognized in OCI | $ | (26,794) | $ | (5,659) | $ | 692 | |||||||||||
Amount of previously recorded gain/(loss) reclassified from OCI into Interest Expense
|
$ | (1,727) | $ | 1,836 | $ | 1,558 | |||||||||||
Amount of loss recognized on derivatives reclassified from OCI into Loss on Extinguishment of Debt
|
$ | — | $ | — | $ | (1,258) | |||||||||||
Total amount of Interest Expense presented in the consolidated statements of income
|
$ | (54,990) | $ | (61,594) | $ | (61,023) | |||||||||||
Total amount of Loss on Extinguishment of Debt presented in the consolidated statements of income
|
$ | (9,336) | $ | — | $ | (1,680) |
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
Financial Instrument | Carrying Value |
Estimated
Fair Value |
Level Within Fair Value Hierarchy | Carrying Value |
Estimated
Fair Value |
Level Within Fair Value Hierarchy | |||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Cash and cash equivalents (1)
|
$ | 7,331 | $ | 7,331 | Level 1 | $ | 13,545 | $ | 13,545 | Level 1 | |||||||||||||||||||||||||
Tenant receivables, net (1)
|
$ | 8,448 | $ | 8,448 | Level 1 | $ | 8,226 | $ | 8,226 | Level 1 | |||||||||||||||||||||||||
Notes receivable
|
$ | 118,500 | $ | 118,500 | Level 2 | $ | — | $ | — | Level 1 | |||||||||||||||||||||||||
Restricted cash and escrows (1)
|
$ | 1,883 | $ | 1,883 | Level 1 | $ | 1,841 | $ | 1,841 | Level 1 | |||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||
Accounts payable and accrued expenses (1)
|
$ | 45,345 | $ | 45,345 | Level 1 | $ | 50,049 | $ | 50,049 | Level 1 | |||||||||||||||||||||||||
Interest rate swaps | $ | 9,834 | $ | 9,834 | Level 2 | $ | 5,121 | $ | 5,121 | Level 2 | |||||||||||||||||||||||||
Debt, net | $ | 1,622,004 | $ | 1,690,377 | Level 2 | $ | 1,481,404 | $ | 1,536,687 | Level 2 |
2020 | 2019 | 2018 | ||||||||||||||||||
The Dupree(1)
|
$ | — | $ | 1,953 | $ | — | ||||||||||||||
600 Corporate Drive(2)
|
— | 7,000 | — | |||||||||||||||||
Total impairment loss on real estate assets
|
$ | — | $ | 8,953 | $ | — | ||||||||||||||
Shares | Weighted-Average Grant Date Fair Value | ||||||||||
Unvested and Potential Stock Awards as of December 31, 2019
|
1,045,020 | $ | 25.15 | ||||||||
Deferred Stock Awards Granted
|
242,586 | $ | 22.39 | ||||||||
Increase in Estimated Potential Share Awards based on TSR Performance
|
111,545 | $ | 26.97 | ||||||||
Performance Stock Awards Vested
|
(153,368) | $ | 30.45 | ||||||||
Deferred Stock Awards Vested
|
(229,274) | $ | 21.05 | ||||||||
Deferred Stock Awards Forfeited
|
(6,979) | $ | 21.82 | ||||||||
Unvested and Potential Stock Awards as of December 31, 2020
|
1,009,530 | $ | 24.37 |
2020 | 2019 | 2018 | |||||||||||||||
Weighted-Average Grant Date Fair Value of Deferred Stock Granted During the Period
|
$ | 22.39 | $ | 21.02 | $ | 17.84 | |||||||||||
Total Grant Date Fair Value of Deferred Stock Vested
During the Period
|
$ | 4,826 | $ | 8,658 | $ | 6,378 | |||||||||||
Share-based Liability Awards Paid During the Period (1)
|
$ | 4,116 | $ | 6,683 | $ | 2,947 |
Date of grant | Type of Award |
Net Shares
Granted (1)
|
Grant
Date Fair Value |
Vesting Schedule |
Unvested and Potential Shares as of December 31, 2020
|
||||||||||||||||||||||||||||||
May 17, 2018 | Deferred Stock Award | 250,627 | $ | 17.84 |
Of the shares granted, 25% vested on the date of grant, and 25% vested or will vest on May 17, 2019, 2020, and 2021, respectively.
|
52,740 | |||||||||||||||||||||||||||||
May 17, 2018 | Fiscal Year 2018-2020 Performance Share Program | — | $ | 23.52 | Shares awarded, if any, will vest immediately upon determination of award in 2021. | 200,674 |
(2)
|
||||||||||||||||||||||||||||
May 3, 2019 | Deferred Stock Award | 274,904 | $ | 21.04 |
Of the shares granted, 25% vested on the date of grant, and 25% vested or will vest on May 3, 2020, 2021, and 2022, respectively.
|
133,900 | |||||||||||||||||||||||||||||
May 3, 2019 | Fiscal Year 2019-2021 Performance Share Program | — | $ | 29.43 | Shares awarded, if any, will vest immediately upon determination of award in 2022. | 224,900 |
(2)
|
||||||||||||||||||||||||||||
February 19, 2020 | Deferred Stock Award | 178,181 | $ | 24.41 |
Of the shares granted, 25% vested on the date of grant, and 25% vested or will vest on February 19, 2021, 2022, and 2023, respectively.
|
143,605 | |||||||||||||||||||||||||||||
March 19, 2020 | Fiscal Year 2020-2022 Performance Share Program | — | $ | 25.83 | Shares awarded, if any, will vest immediately upon determination of award in 2023. | 207,931 |
(2)
|
||||||||||||||||||||||||||||
May 13, 2020 | Deferred Stock Award-Board of Directors | 45,780 | $ | 13.76 |
Of the shares granted, 100% will vest by May 13, 2021.
|
45,780 | |||||||||||||||||||||||||||||
Total | 1,009,530 |
2020 | 2019 | 2018 | |||||||||||||||
Weighted-average common shares—basic | 125,730 | 125,709 | 130,161 | ||||||||||||||
Plus: Incremental weighted-average shares from time-vested deferred and performance stock awards
|
374 | 473 | 475 | ||||||||||||||
Weighted-average common shares—diluted | 126,104 | 126,182 | 130,636 | ||||||||||||||
Years ending December 31: | ||||||||||||||
2021 | $ | 378,807 | ||||||||||||
2022 | 367,261 | |||||||||||||
2023 | 331,195 | |||||||||||||
2024 | 290,377 | |||||||||||||
2025 | 244,376 | |||||||||||||
Thereafter | 1,134,705 | |||||||||||||
Total | $ | 2,746,721 |
2020 | 2019 | 2018 | ||||||||||||||||||
Fixed payments | $ | 433,841 | $ | 418,245 | $ | 411,667 | ||||||||||||||
Variable payments | 86,112 | 93,660 | 92,743 | |||||||||||||||||
Total Rental and Tenant Reimbursement Revenue
|
$ | 519,953 | $ | 511,905 | $ | 504,410 |
Buildings Sold | Location | Date of Sale | Gain on Sale of Real Estate Assets | Net Sales Proceeds | |||||||||||||||||||||||||
2017 Disposition Portfolio
|
Various(1)
|
January 4, 2018 | $ | 45,275 | $ | 419,644 |
(2)
|
||||||||||||||||||||||
800 North Brand Boulevard | Glendale, California | November 29, 2018 | $ | 30,416 | $ | 155,583 | |||||||||||||||||||||||
One Independence Square | Washington, D.C. | February 28, 2019 | $ | 33,176 | $ | 163,623 | |||||||||||||||||||||||
The Dupree | Atlanta, Georgia | September 4, 2019 | $ | — |
(3)
|
$ | 12,631 | ||||||||||||||||||||||
500 West Monroe Street | Chicago, Illinois | October 28, 2019 | $ | 157,739 | $ | 408,851 | |||||||||||||||||||||||
1901 Market Street | Philadelphia, Pennsylvania | June 25, 2020 | $ | 191,030 | $ | 350,805 | |||||||||||||||||||||||
New Jersey Portfolio |
Various(4)
|
October 28, 2020 | $ | 14,636 | $ | 9,289 |
(5)
|
December 31, 2020 | December 31, 2019 | |||||||||||||
Real estate assets held for sale, net: | ||||||||||||||
Land
|
$ | — | $ | 20,829 | ||||||||||
Building and improvements, less accumulated depreciation of $0 and $66,823 as of December 31, 2020, and 2019, respectively
|
— | 112,287 | ||||||||||||
Intangible lease assets, less accumulated amortization of $0 and $27,438 as of December 31, 2020 and 2019, respectively
|
— | 6,574 | ||||||||||||
Total real estate assets held for sale, net
|
$ | — | $ | 139,690 | ||||||||||
Other assets held for sale, net: | ||||||||||||||
Straight-line rent receivables
|
$ | — | $ | 18,776 | ||||||||||
Deferred lease costs, less accumulated amortization of $0 and $34,957 as of December 31, 2020 and 2019, respectively
|
— | 9,425 | ||||||||||||
Total other assets held for sale, net
|
$ | — | $ | 28,201 | ||||||||||
Other liabilities held for sale, net: | ||||||||||||||
Intangible lease liabilities, less accumulated amortization of $0 and $31,959 as of December 31, 2020 and 2019, respectively
|
$ | — | $ | 7,657 |
2020 | 2019 | 2018 | ||||||||||||||||||
Cash and cash equivalents, beginning of period | $ | 13,545 | $ | 4,571 | $ | 7,382 | ||||||||||||||
Restricted cash and escrows, beginning of period | 1,841 | 1,463 | 1,373 | |||||||||||||||||
Total cash, cash equivalents, and restricted cash and escrows shown in the consolidated statement of cash flows, beginning of period
|
$ | 15,386 | $ | 6,034 | $ | 8,755 | ||||||||||||||
Cash and cash equivalents, end of period
|
$ | 7,331 | $ | 13,545 | $ | 4,571 | ||||||||||||||
Restricted cash and escrows, end of period
|
1,883 | 1,841 | 1,463 | |||||||||||||||||
Total cash, cash equivalents, and restricted cash and escrows shown in the consolidated statement of cash flows, end of period
|
$ | 9,214 | $ | 15,386 | $ | 6,034 |
2020 | 2019 | 2018 | |||||||||||||||
GAAP basis financial statement net income | $ | 232,688 | $ | 229,261 | $ | 130,296 | |||||||||||
Increase/(decrease) in net income resulting from: | |||||||||||||||||
Depreciation and amortization expense recognized for financial reporting purposes in excess of amounts recognized for income tax purposes
|
73,784 | 10,381 | 54,420 | ||||||||||||||
Rental income accrued for income tax purposes less than amounts for financial reporting purposes
|
(25,726) | (34,804) | (9,681) | ||||||||||||||
Net amortization of above/below-market lease intangibles for income tax purposes in excess of amounts for financial reporting purposes
|
(11,625) | (7,698) | (7,453) | ||||||||||||||
Gain on disposal of property for financial reporting purposes less than/(in excess of) amounts for income tax purposes
|
(222,037) | (85,463) | (36,241) | ||||||||||||||
Taxable income or loss of Piedmont Washington Properties, Inc., in excess of/(less than) amount for financial reporting purposes
|
1,345 | 411 | (2,089) | ||||||||||||||
Other expenses, including impairment loss on real estate assets, for financial reporting purposes in excess of/ (less than) amounts for income tax purposes
|
10,970 | 23,127 | (37,394) | ||||||||||||||
Taxable income for POH in excess of/(less than) amount for financial reporting purposes
|
1,499 | 175 | (64) | ||||||||||||||
Income tax basis net income, prior to dividends paid deduction | $ | 60,898 | $ | 135,390 | $ | 91,794 |
2020 | 2019 | 2018 | |||||||||||||||
Ordinary income | 91.91 | % | 29.82 | % | 100.00 | % | |||||||||||
Return of capital | 8.09 | % | — | % | — | % | |||||||||||
Capital gains | — | % | 70.18 | % | — | % | |||||||||||
100 | % | 100 | % | 100 | % |
2020 | |||||||||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||||||||
Revenues | $ | 137,171 | $ | 134,631 | $ | 131,693 | $ | 131,529 | |||||||||||||||
Gain/(loss) on sale of real estate assets | $ | 3 | $ | 191,369 | $ | (340) | $ | 14,634 | |||||||||||||||
Net income | $ | 8,711 | $ | 192,426 | $ | 8,940 | $ | 22,608 | |||||||||||||||
Net income applicable to Piedmont | $ | 8,709 | $ | 192,427 | $ | 8,943 | $ | 22,609 | |||||||||||||||
Basic earnings per share | $ | 0.07 | $ | 1.53 | $ | 0.07 | $ | 0.18 | |||||||||||||||
Diluted earnings per share | $ | 0.07 | $ | 1.52 | $ | 0.07 | $ | 0.18 | |||||||||||||||
Dividends declared per share | $ | 0.21 | $ | 0.21 | $ | 0.21 | $ | 0.21 |
2019 | |||||||||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||||||||
Revenues | $ | 132,936 | $ | 130,668 | $ | 135,421 | $ | 134,153 | |||||||||||||||
Gain on sale of real estate assets | $ | 37,887 | $ | 1,451 | $ | 32 | $ | 157,640 | |||||||||||||||
Net income | $ | 50,209 | $ | 8,152 | $ | 8,419 | $ | 162,476 | |||||||||||||||
Net income applicable to Piedmont | $ | 50,208 | $ | 8,153 | $ | 8,422 | $ | 162,478 | |||||||||||||||
Basic and diluted earnings per share | $ | 0.40 | $ | 0.06 | $ | 0.07 | $ | 1.29 | |||||||||||||||
Dividends declared per share | $ | 0.21 | $ | 0.21 | $ | 0.21 | $ | 0.21 |
Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Dallas | $ | 101,727 | $ | 55,346 | $ | 54,382 | |||||||||||
Atlanta | 95,403 | 75,699 | 62,282 | ||||||||||||||
Washington, D.C. | 59,760 | 64,481 | 68,404 | ||||||||||||||
Minneapolis | 61,465 | 64,318 | 57,711 | ||||||||||||||
Boston | 61,338 | 64,739 | 54,648 | ||||||||||||||
Orlando | 54,886 | 57,084 | 55,440 | ||||||||||||||
New York | 69,827 | 75,587 | 71,733 | ||||||||||||||
Total reportable segments | 504,406 | 457,254 | 424,600 | ||||||||||||||
Corporate and other | 30,618 | 75,924 | 101,367 | ||||||||||||||
Total Revenues | $ | 535,024 | $ | 533,178 | $ | 525,967 |
Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Dallas | $ | 59,845 | $ | 29,438 | $ | 29,286 | |||||||||||
Atlanta | 60,276 | 47,287 | 38,660 | ||||||||||||||
Washington, D.C. | 36,696 | 41,167 | 41,565 | ||||||||||||||
Minneapolis | 33,588 | 35,610 | 30,402 | ||||||||||||||
Boston | 41,722 | 44,016 | 37,887 | ||||||||||||||
Orlando | 34,427 | 35,433 | 35,067 | ||||||||||||||
New York | 38,990 | 44,036 | 40,622 | ||||||||||||||
Total reportable segments | 305,544 | 276,987 | 253,489 | ||||||||||||||
Corporate and other | 13,915 | 43,637 | 63,649 | ||||||||||||||
Total NOI | $ | 319,459 | $ | 320,624 | $ | 317,138 |
Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Net income applicable to Piedmont | $ | 232,688 | $ | 229,261 | $ | 130,296 | |||||||||||
Management fee revenue (1)
|
(1,495) | (2,518) | (712) | ||||||||||||||
Depreciation and amortization | 203,869 | 182,682 | 171,252 | ||||||||||||||
Impairment loss on real estate assets | — | 8,953 | — | ||||||||||||||
General and administrative expenses | 27,464 | 37,895 | 29,713 | ||||||||||||||
Interest expense | 54,990 | 61,594 | 61,023 | ||||||||||||||
Other income | (1,724) | (228) | (418) | ||||||||||||||
Loss on extinguishment of debt | 9,336 | — | 1,680 | ||||||||||||||
Gain on sale of real estate assets | (205,666) | (197,010) | (75,691) | ||||||||||||||
Net loss applicable to noncontrolling interests | (3) | (5) | (5) | ||||||||||||||
NOI | $ | 319,459 | $ | 320,624 | $ | 317,138 |
Initial Cost to Piedmont |
Gross Amount of Which
Carried at December 31, 2020
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description(1)
|
Location |
Ownership
Percentage |
Encumbrances | Land |
Buildings and
Improvements |
Total(2)
|
Costs Capitalized Subsequent
to Acquisition(3)
|
Land |
Buildings and
Improvements |
Total(4)
|
Accumulated
Depreciation and Amortization |
Date of
Construction |
Date
Acquired |
Life on
which
Depreciation
and
Amortization
in Latest Statements of Comprehensive Income is Computed
(in years)(5)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1430 ENCLAVE PARKWAY | Houston, TX | 100 | % | None | 7,100 | 37,915 | 45,015 | 6,473 | 5,506 | 45,982 | 51,488 | 21,321 | 1994 | 12/21/2000 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CRESCENT RIDGE II | Minnetonka, MN | 100 | % | None | 7,700 | 45,154 | 52,854 | 12,363 | 8,021 | 57,196 | 65,217 | 28,532 | 2000 | 12/21/2000 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
90 CENTRAL STREET | Boxborough, MA | 100 | % | None | 3,642 | 29,497 | 33,139 | 2,794 | 3,642 | 32,291 | 35,933 | 14,670 | 2001 | 5/3/2002 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6031 CONNECTION DRIVE | Irving, TX | 100 | % | None | 3,157 | 43,656 | 46,813 | 8,454 | 3,157 | 52,110 | 55,267 | 22,979 | 1999 | 8/15/2002 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6021 CONNECTION DRIVE | Irving, TX | 100 | % | None | 3,157 | 42,662 | 45,819 | 11,562 | 3,157 | 54,224 | 57,381 | 25,875 | 2000 | 8/15/2002 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6011 CONNECTION DRIVE | Irving, TX | 100 | % | None | 3,157 | 29,034 | 32,191 | 18,524 | 3,157 | 47,558 | 50,715 | 15,583 | 1999 | 8/15/2002 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
US BANCORP CENTER | Minneapolis, MN | 100 | % | None | 11,138 | 175,629 | 186,767 | 31,142 | 11,138 | 206,771 | 217,909 | 91,546 | 2000 | 5/1/2003 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GLENRIDGE HIGHLANDS TWO | Atlanta, GA | 100 | % | None | 6,662 | 69,031 | 75,693 | (15,253) | 6,662 | 53,778 | 60,440 | 26,802 | 2000 | 8/1/2003 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
400 VIRGINIA AVE | Washington, DC | 100 | % | None | 22,146 | 49,740 | 71,886 | 2,375 | 22,146 | 52,115 | 74,261 | 21,865 | 1985 | 11/19/2003 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4250 NORTH FAIRFAX DRIVE | Arlington, VA | 100 | % | None | 13,636 | 70,918 | 84,554 | 16,725 | 13,636 | 87,643 | 101,279 | 36,852 | 1998 | 11/19/2003 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1225 EYE STREET | Washington, DC | 98.1 | % | None | 21,959 | 47,602 | 69,561 | 9,758 | 21,959 | 57,360 | 79,319 | 25,963 | 1986 | 11/19/2003 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1201 EYE STREET | Washington, DC | 98.6 | % | None | 31,985 | 63,139 | 95,124 | 9,768 | 31,985 | 72,907 | 104,892 | 29,381 | 2001 | 11/19/2003 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
60 BROAD STREET | New York, NY | 100 | % | None | 32,522 | 168,986 | 201,508 | 43,190 | 60,708 | 183,990 | 244,698 | 62,826 | 1962 | 12/31/2003 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1414 MASSACHUSETTS AVENUE | Cambridge, MA | 100 | % | None | 4,210 | 35,821 | 40,031 | (8,031) | 4,365 | 27,635 | 32,000 | 11,819 | 1873 | 1/8/2004 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ONE BRATTLE SQUARE | Cambridge, MA | 100 | % | None | 6,974 | 64,940 | 71,914 | (23,111) | 7,113 | 41,690 | 48,803 | 18,286 | 1991 | 2/26/2004 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3100 CLARENDON BOULEVARD | Arlington, VA | 100 | % | None | 11,700 | 69,705 | 81,405 | 48,835 | 11,791 | 118,449 | 130,240 | 38,772 | 1987 | 12/9/2004 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LAS COLINAS CORPORATE CENTER I | Irving, TX | 100 | % | None | 3,912 | 18,830 | 22,742 | (3,316) | 2,543 | 16,883 | 19,426 | 6,775 | 1998 | 8/31/2006 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LAS COLINAS CORPORATE CENTER II | Irving, TX | 100 | % | None | 4,496 | 29,881 | 34,377 | (2,047) | 2,543 | 29,787 | 32,330 | 12,272 | 1998 | 8/31/2006 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Initial Cost |
Gross Amount of Which
Carried at December 31, 2020
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description(1)
|
Location |
Ownership
Percentage |
Encumbrances | Land |
Buildings and
Improvements |
Total(2)
|
Costs Capitalized Subsequent
to Acquisition(3)
|
Land |
Buildings and
Improvements |
Total(4)
|
Accumulated
Depreciation and Amortization |
Date of
Construction |
Date
Acquired |
Life on
which
Depreciation
and
Amortization
in Latest Statements of Comprehensive Income is Computed
(in years)(5)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TWO PIERCE PLACE | Itasca, IL | 100 | % | None | 4,370 | 70,632 | 75,002 | 12,528 | 8,156 | 79,374 | 87,530 | 25,018 | 1991 | 12/7/2006 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ONE MERIDIAN CROSSINGS | Richfield, MN | 100 | % | None | 2,919 | 24,398 | 27,317 | 621 | 2,919 | 25,019 | 27,938 | 7,170 | 1997 | 10/1/2010 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TWO MERIDIAN CROSSINGS | Richfield, MN | 100 | % | None | 2,661 | 25,742 | 28,403 | 839 | 2,661 | 26,581 | 29,242 | 7,636 | 1998 | 10/1/2010 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
THE MEDICI | Atlanta, GA | 100 | % | None | 1,780 | 11,510 | 13,290 | 5,632 | 1,780 | 17,142 | 18,922 | 6,325 | 2008 | 6/7/2011 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
225 PRESIDENTIAL WAY | Boston, MA | 100 | % | None | 3,626 | 36,916 | 40,542 | (5,419) | 3,612 | 31,511 | 35,123 | 7,363 | 2001 | 9/13/2011 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
235 PRESIDENTIAL WAY | Boston, MA | 100 | % | None | 4,154 | 44,048 | 48,202 | (6,851) | 4,138 | 37,213 | 41,351 | 8,659 | 2000 | 9/13/2011 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
400 TOWNPARK | Lake Mary, FL | 100 | % | None | 2,570 | 20,555 | 23,125 | 5,634 | 2,570 | 26,189 | 28,759 | 8,063 | 2008 | 11/10/2011 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ARLINGTON GATEWAY | Arlington, VA | 100 | % | None | 36,930 | 129,070 | 166,000 | 917 | 36,930 | 129,987 | 166,917 | 27,497 | 2005 | 3/4/2013 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 & 15 WAYSIDE ROAD | Burlington, MA | 100 | % | None | 7,190 | 55,445 | 62,635 | 6,463 | 7,190 | 61,908 | 69,098 | 14,471 | 1999 / 2001 | 3/22/2013 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6565 MACARTHUR BOULEVARD | Irving, TX | 100 | % | None | 4,820 | 37,767 | 42,587 | 726 | 4,820 | 38,493 | 43,313 | 8,203 | 1998 | 12/5/2013 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ONE LINCOLN PARK | Dallas, TX | 100 | % | None | 6,640 | 44,810 | 51,450 | 2,469 | 6,640 | 47,279 | 53,919 | 10,939 | 1999 | 12/20/2013 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
161 CORPORATE CENTER | Irving, TX | 100 | % | None | 2,020 | 10,680 | 12,700 | (467) | 2,020 | 10,213 | 12,233 | 2,786 | 1998 | 12/30/2013 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 WALL STREET | Burlington, MA | 100 | % | 27,610 | 9,560 | 50,276 | 59,836 | (2,212) | 9,560 | 48,064 | 57,624 | 8,813 | 2008 | 6/27/2014 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1155 PERIMETER CENTER WEST | Atlanta, GA | 100 | % | None | 5,870 | 66,849 | 72,719 | 5,879 | 5,870 | 72,728 | 78,598 | 12,934 | 2000 | 8/28/2014 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
500 TOWNPARK | Lake Mary, FL | 100 | % | None | 2,147 | 21,925 | 24,072 | 4,092 | 2,147 | 26,017 | 28,164 | 3,522 | 2016 | N/A | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PARK PLACE ON TURTLE CREEK | Dallas, TX | 100 | % | None | 4,470 | 38,048 | 42,518 | 4,117 | 4,470 | 42,165 | 46,635 | 7,564 | 1986 | 1/16/2015 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
80 CENTRAL STREET | Boxborough, MA | 100 | % | None | 1,980 | 8,930 | 10,910 | 3,731 | 1,980 | 12,661 | 14,641 | 2,050 | 1988 | 7/24/2015 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ENCLAVE PLACE | Houston, TX | 100 | % | None | 1,890 | 60,094 | 61,984 | 35,319 | 1,890 | 95,413 | 97,303 | 10,591 | 2015 | N/A | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
200 SOUTH ORANGE AVENUE | Orlando, FL | 100 | % | None | 11,660 | 139,015 | 150,675 | 20,653 | 11,660 | 159,668 | 171,328 | 22,127 | 1988 | 11/4/2015 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GALLERIA 300 | Atlanta, GA | 100 | % | None | 4,000 | 73,554 | 77,554 | 6,799 | 4,000 | 80,353 | 84,353 | 14,130 | 1987 | 11/4/2015 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Initial Cost |
Gross Amount of Which
Carried at December 31, 2020
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description(1)
|
Location |
Ownership
Percentage |
Encumbrances | Land |
Buildings and
Improvements |
Total(2)
|
Costs Capitalized Subsequent
to Acquisition(3)
|
Land |
Buildings and
Improvements |
Total(4)
|
Accumulated
Depreciation and Amortization |
Date of
Construction |
Date
Acquired |
Life on
which
Depreciation
and
Amortization
in Latest Statements of Comprehensive Income is Computed
(in years)(5)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GLENRIDGE HIGHLANDS ONE | Atlanta, GA | 100 | % | None | 5,960 | 50,013 | 55,973 | 3,381 | 5,960 | 53,394 | 59,354 | 8,796 | 1998 | 11/24/2015 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CNL CENTER I | Orlando, FL | 99 | % | None | 6,470 | 77,858 | 84,328 | (20) | 6,470 | 77,838 | 84,308 | 11,639 | 1999 | 8/1/2016 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CNL CENTER II | Orlando, FL | 99 | % | None | 4,550 | 55,609 | 60,159 | 862 | 4,550 | 56,471 | 61,021 | 9,869 | 2006 | 8/1/2016 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ONE WAYSIDE ROAD | Boston, MA | 100 | % | None | 6,240 | 57,124 | 63,364 | (4,471) | 6,240 | 52,653 | 58,893 | 6,455 | 1997 / 2008 | 8/10/2016 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GALLERIA 200 | Atlanta, GA | 100 | % | None | 6,470 | 55,825 | 62,295 | 9,738 | 6,470 | 65,563 | 72,033 | 8,642 | 1984 | 10/7/2016 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
750 WEST JOHN CARPENTER FREEWAY | Irving, TX | 100 | % | None | 7,860 | 36,303 | 44,163 | 2,914 | 7,860 | 39,217 | 47,077 | 8,445 | 1999 | 11/30/2016 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NORMAN POINTE I | Bloomington, MN | 100 | % | None | 4,358 | 22,322 | 26,680 | 3,917 | 4,360 | 26,237 | 30,597 | 3,384 | 2000 | 12/28/2017 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
501 WEST CHURCH STREET | Orlando, FL | 100 | % | None | 2,805 | 28,119 | 30,924 | — | 2,805 | 28,119 | 30,924 | 3,396 | 2003 | 2/23/2018 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9320 EXCELSIOR BOULEVARD | Hopkins, MN | 100 | % | None | 3,760 | 35,289 | 39,049 | (553) | 3,707 | 34,789 | 38,496 | 4,531 | 2010 | 10/25/2018 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
25 BURLINGTON MALL ROAD | Burlington, MA | 100 | % | None | 10,230 | 54,787 | 65,017 | (2,543) | 10,230 | 52,244 | 62,474 | 5,942 | 1987 | 12/12/2018 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GALLERIA 100 | Atlanta, GA | 100 | % | None | 7,285 | 72,449 | 79,734 | 488 | 7,285 | 72,937 | 80,222 | 7,238 | 1982 | 5/6/2019 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GALLERIA 400 | Atlanta, GA | 100 | % | None | 5,687 | 92,915 | 98,602 | 698 | 5,687 | 93,613 | 99,300 | 5,605 | 1999 | 8/23/2019 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GALLERIA 600 | Atlanta, GA | 100 | % | None | 5,418 | 81,003 | 86,421 | 9 | 5,418 | 81,012 | 86,430 | 5,135 | 2002 | 8/23/2019 | 0 | - | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ONE GALLERIA TOWER | Dallas, TX | 100 | % | None | 5,286 | 107,767 | 113,053 | 982 | 5,286 | 108,749 | 114,035 | 5,933 | 1982 | 2/12/2020 | 0 | 40 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TWO GALLERIA TOWER | Dallas, TX | 100 | % | None | 3,835 | 109,605 | 113,440 | 545 | 3,836 | 110,149 | 113,985 | 6,061 | 1985 | 2/12/2020 | 0 | 40 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
THREE GALLERIA TOWER | Dallas, TX | 100 | % | None | 6,541 | 125,490 | 132,031 | 312 | 6,541 | 125,802 | 132,343 | 5,895 | 1991 | 2/12/2020 | 0 | 40 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
222 SOUTH ORANGE AVENUE | Orlando, FL | 100 | % | None | 1,899 | 18,417 | 20,316 | 157 | 1,899 | 18,574 | 20,473 | — | 1959 | 10/29/2020 | 0 | 40 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
UNDEVELOPED LAND PARCELS (6)
|
Various | 100 | % | None | 44,509 | — | 44,509 | 363 | 41,620 | 3,252 | 44,872 | 446 | N/A | Various | N/A | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total—All Properties | $ | 459,673 | $ | 3,143,299 | $ | 3,602,972 | $ | 288,454 | $ | 484,466 | $ | 3,406,960 | $ | 3,891,426 | $ | 835,392 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at the beginning of the year | $ | 3,818,287 | $ | 3,924,531 | $ | 4,438,209 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additions to/improvements of real estate | 493,760 | 406,832 | 206,442 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets disposed | (393,231) | (452,672) | (675,692) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets impaired (1)
|
— | (8,953) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Write-offs of intangible assets (2)
|
(15,891) | (36,428) | (33,067) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Write-offs of fully depreciated/amortized assets | (11,499) | (15,023) | (11,361) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at the end of the year | $ | 3,891,426 | $ | 3,818,287 | $ | 3,924,531 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Depreciation and Amortization: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at the beginning of the year | $ | 875,777 | $ | 907,937 | $ | 1,053,467 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization expense | 142,762 | 132,600 | 128,456 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets disposed | (155,757) | (113,309) | (229,558) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Write-offs of intangible assets (2)
|
(15,891) | (36,428) | (33,067) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Write-offs of fully depreciated/amortized assets | (11,499) | (15,023) | (11,361) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at the end of the year | $ | 835,392 | $ | 875,777 | $ | 907,937 |
Subsidiary | State of Organization | |||||||
Piedmont Operating Partnership, LP | Delaware | |||||||
Piedmont Washington Properties, Inc. | Maryland | |||||||
Piedmont Office Holdings, Inc. | Georgia | |||||||
Piedmont Office Holdings II, Inc. | Georgia | |||||||
Piedmont Office Management, LLC | Georgia | |||||||
Piedmont Government Services, LLC | Georgia | |||||||
Piedmont Leasing, LLC | Delaware | |||||||
Piedmont Power, LLC | Delaware | |||||||
Piedmont-Las Colinas Springing Member, LLC | Delaware | |||||||
Piedmont 1901 Market Business Trust | Delaware | |||||||
Piedmont 1901 Market LLC | Delaware | |||||||
Piedmont Bridgewater I, LLC | Delaware | |||||||
Piedmont-Bridgewater, NJ, LLC | Delaware | |||||||
Piedmont-Independence Square, LLC | Delaware | |||||||
Piedmont-3100 Clarendon LLC | Delaware | |||||||
Piedmont-Multi-State Owner, LLC | Delaware | |||||||
Piedmont-One Brattle Square I, LLC | Delaware | |||||||
Piedmont-One Brattle Square II, LLC | Delaware | |||||||
4250 North Fairfax Property LLC | Delaware | |||||||
4250 N. Fairfax Owner, LLC | Delaware | |||||||
400 Virginia Avenue LLC | Delaware | |||||||
1201 Eye Street, N.W. Associates LLC | Delaware | |||||||
1215 ESDI, LLC | Delaware | |||||||
1225 Equity LLC | Delaware | |||||||
1225 Eye Street, N.W. Associates LLC | Delaware | |||||||
1201 Equity LLC | Delaware | |||||||
TTF Lending LLC | Delaware | |||||||
TZO Lending LLC | Delaware | |||||||
Piedmont-Two Pierce Place, LLC | Delaware | |||||||
Piedmont-Las Colinas Corporate Center I, LP | Delaware | |||||||
Piedmont-Las Colinas Corporate Center I, GP, LLC | Delaware | |||||||
Piedmont-Las Colinas Corporate Center II, LP | Delaware | |||||||
Piedmont-Las Colinas Corporate Center II, GP, LLC | Delaware | |||||||
Piedmont 60 Broad Street, LLC | Delaware | |||||||
Piedmont-800 Nicollet Avenue, LLC | Delaware | |||||||
Piedmont-800 Nicollet Avenue Owner, LLC | Delaware | |||||||
Piedmont-800 Nicollet Avenue Springing Member, LLC | Delaware | |||||||
Piedmont-1430 Enclave Parkway, L.P. | Delaware | |||||||
Piedmont-1430 Enclave Parkway, GP, LLC | Delaware | |||||||
Enclave Place GP, LLC | Delaware | |||||||
Enclave Place, LP | Delaware | |||||||
Meridian Crossings, LLC | Delaware | |||||||
Medici Atlanta, LLC | Delaware | |||||||
Presidential Way Woburn, LLC | Delaware |
400 TownPark, LLC | Delaware | |||||||
Gavitello Atlanta, LLC | Delaware | |||||||
Glenridge Highlands III, LLC | Delaware | |||||||
Piedmont - 901 N. Glebe, LLC | Delaware | |||||||
Piedmont 5 & 15 Wayside, LLC | Delaware | |||||||
Piedmont Royal Lane, LP | Delaware | |||||||
Piedmont Royal Lane GP, LLC | Delaware | |||||||
Piedmont 6565 MacArthur Boulevard, LP | Delaware | |||||||
Piedmont 6565 MacArthur Boulevard GP, LLC | Delaware | |||||||
Piedmont One Lincoln Park, LP | Delaware | |||||||
Piedmont One Lincoln Park GP, LLC | Delaware | |||||||
Piedmont 161 Corporate Center, LP | Delaware | |||||||
Piedmont 161 Corporate Center GP, LLC | Delaware | |||||||
Piedmont 5 Wall Street Burlington, LLC | Delaware | |||||||
Piedmont 1155 PCW, LLC | Delaware | |||||||
Piedmont - Two Pierce Place Land, LLC | Delaware | |||||||
Piedmont TownPark Land, LLC | Delaware | |||||||
Piedmont Park Place, LP | Delaware | |||||||
Piedmont Park Place GP, LLC | Delaware | |||||||
Piedmont HBC, LLC | Delaware | |||||||
Piedmont 500 TownPark, LLC | Delaware | |||||||
Piedmont 80 Central, LLC | Delaware | |||||||
Piedmont 300 Galleria, LLC | Delaware | |||||||
Piedmont 200 & 250 South Orange Avenue, LLC | Delaware | |||||||
Piedmont Glenridge Highlands One, LLC | Delaware | |||||||
Piedmont Lending I, LLC | Delaware | |||||||
Piedmont Lending II, LLC | Delaware | |||||||
Piedmont Towers Orlando Member, LLC | Delaware | |||||||
Piedmont-CNL Towers Orlando, LLC | Delaware | |||||||
Piedmont-CNL Towers Orlando Owner, LLC | Delaware | |||||||
Piedmont One Wayside, LLC | Delaware | |||||||
Piedmont 200 Galleria, LLC | Delaware | |||||||
Piedmont 200 Galleria Owner, LLC | Delaware | |||||||
Piedmont 750 W John Carpenter, LLC | Delaware | |||||||
Piedmont Norman Pointe I, LLC | Delaware | |||||||
Piedmont 501 W Church Street, LLC | Delaware | |||||||
Piedmont 9320 Excelsior, LLC | Delaware | |||||||
Piedmont 25 Mall Road, LLC | Delaware | |||||||
Piedmont 100 Galleria, LLC | Delaware | |||||||
Piedmont 400 Galleria, LLC | Delaware | |||||||
Piedmont 500 Galleria Land, LLC | Delaware | |||||||
Piedmont 500 Galleria Roundabout, LLC | Delaware | |||||||
Piedmont 600 Galleria, LLC | Delaware | |||||||
Piedmont Dallas Galleria, LLC | Delaware | |||||||
Piedmont Dallas Galleria II, LLC | Delaware | |||||||
Piedmont SOAB Building, LLC | Delaware |
By: |
/s/ C. BRENT SMITH
|
|||||||
C. Brent Smith | ||||||||
Principal Executive Officer |
By: |
/s/ ROBERT E. BOWERS
|
|||||||
Robert E. Bowers | ||||||||
Principal Financial Officer |
By: |
/s/ C. BRENT SMITH
|
|||||||
C. Brent Smith | ||||||||
Chief Executive Officer | ||||||||
February 17, 2021 |
By: |
/s/ ROBERT E. BOWERS
|
|||||||
Robert E. Bowers | ||||||||
Chief Financial Officer | ||||||||
February 17, 2021 |