# EDGAR Filing Document

**Accession Number:** 0001042776
**File Stem:** 0001042776-23-000032
**Filing Date:** 2023-2
**Character Count:** 156946
**Document Hash:** 0248fdd448b0557c3cf0d6ad328e9453
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001042776-23-000032.hdr.sgml**: 20230214

**ACCESSION NUMBER**: 0001042776-23-000032

**CONFORMED SUBMISSION TYPE**: 8-K/A

**PUBLIC DOCUMENT COUNT**: 22

**CONFORMED PERIOD OF REPORT**: 20230208

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230214

**DATE AS OF CHANGE**: 20230214

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Piedmont Office Realty Trust, Inc.
- **CENTRAL INDEX KEY:** 0001042776
- **STANDARD INDUSTRIAL CLASSIFICATION:** OPERATORS OF NONRESIDENTIAL BUILDINGS [6512]
- **IRS NUMBER:** 582328421
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K/A
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-34626
- **FILM NUMBER:** 23630889

**BUSINESS ADDRESS:**
- **STREET 1:** 5565 GLENRIDGE CONNECTOR
- **STREET 2:** STE 450
- **CITY:** ATLANTA
- **STATE:** GA
- **ZIP:** 30342
- **BUSINESS PHONE:** 7704188800

**MAIL ADDRESS:**
- **STREET 1:** 5565 GLENRIDGE CONNECTOR
- **STREET 2:** STE 450
- **CITY:** ATLANTA
- **STATE:** GA
- **ZIP:** 30342

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** WELLS REAL ESTATE INVESTMENT TRUST INC
- **DATE OF NAME CHANGE:** 19980515

?xml version="1.0" ? pdm-20230208

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

**Form 8-K/A** 

**CURRENT REPORT** 

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

**Date of Report (Date of earliest event reported): February 8, 2023** 

**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.□

------

**Item 2.02&nbsp;&nbsp;&nbsp;&nbsp;Results of Operations and Financial Condition.**

On February 8, 2023, Piedmont Office Realty Trust, Inc. (the "Registrant") issued a press release and published supplemental information for the fourth quarter and year ended December 31, 2022, to its website. It was subsequently determined that the Net income/(loss) per share applicable to common stockholders - diluted and the Core FFO per diluted share line items for all periods presented on p.5 of the supplemental information contained typographical errors. This information has been corrected in the supplemental information attached hereto as Exhibit 99.2. No changes have been made to the press release previously filed as this information was accurately reported in the press release. 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&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits.**

(d) <u>Exhibits</u>:

---

| | |
|:---|:---|
| **<u>Exhibit No.</u>** | **<u>Description</u>** |
| 99.2 | <u>[Piedmont Office Realty Trust, Inc. Quarterly Supplemental Information for the Fourth Quarter 2022.](pdm123122ex992q42022supple.htm)</u> |
| 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: | February 14, 2023 | By: | /s/&nbsp;&nbsp;&nbsp;&nbsp;Robert E. Bowers |
|  |  |  | Robert E. Bowers |
|  |  |  | Chief Financial Officer and Executive Vice President |

---

## Exhibit 99.2

**EXHIBIT 99.2**

------

![q4_2022supplementalcover.jpg](q4_2022supplementalcover.jpg)

------

**Piedmont Office Realty Trust, Inc.**

**Quarterly Supplemental Information**

**Index**

---

| | | | |
|:---|:---|:---|:---|
| | **Page** | | **Page** |
| **Introduction** | | **Other Investments** | |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate Data | <u>[3](#iadd70805bcca4717ab5b271bc66524e4_10)</u> | &nbsp;&nbsp;&nbsp;&nbsp;Other Investments Detail | <u>[33](#iadd70805bcca4717ab5b271bc66524e4_82)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Investor Information | <u>[4](#iadd70805bcca4717ab5b271bc66524e4_13)</u> | **Supporting Information** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Earnings Release | <u>[5](#iadd70805bcca4717ab5b271bc66524e4_16)</u> | &nbsp;&nbsp;&nbsp;&nbsp;Definitions | <u>[34](#iadd70805bcca4717ab5b271bc66524e4_85)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Key Performance Indicators | <u>[8](#iadd70805bcca4717ab5b271bc66524e4_19)</u> | &nbsp;&nbsp;&nbsp;&nbsp;Research Coverage | <u>[35](#iadd70805bcca4717ab5b271bc66524e4_88)</u> |
| **Financials** |  | &nbsp;&nbsp;&nbsp;&nbsp;Non-GAAP Reconciliations | <u>[36](#iadd70805bcca4717ab5b271bc66524e4_91)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance Sheets | <u>[9](#iadd70805bcca4717ab5b271bc66524e4_22)</u> | &nbsp;&nbsp;&nbsp;&nbsp;In-Service Portfolio Detail | <u>[38](#iadd70805bcca4717ab5b271bc66524e4_94)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Income Statements | <u>[10](#iadd70805bcca4717ab5b271bc66524e4_25)</u> | &nbsp;&nbsp;&nbsp;&nbsp;Major Leases Not Yet Commenced and Major Abatements | <u>[40](#iadd70805bcca4717ab5b271bc66524e4_97)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Funds From Operations / Adjusted Funds From Operations | <u>[12](#iadd70805bcca4717ab5b271bc66524e4_28)</u> | &nbsp;&nbsp;&nbsp;&nbsp;Risks, Uncertainties and Limitations | <u>[41](#iadd70805bcca4717ab5b271bc66524e4_100)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Same Store Analysis | <u>[13](#iadd70805bcca4717ab5b271bc66524e4_31)</u> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Capitalization Analysis | <u>[16](#iadd70805bcca4717ab5b271bc66524e4_34)</u> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt Summary | <u>[17](#iadd70805bcca4717ab5b271bc66524e4_37)</u> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt Detail | <u>[18](#iadd70805bcca4717ab5b271bc66524e4_40)</u> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt Covenant & Ratio Analysis | <u>[19](#iadd70805bcca4717ab5b271bc66524e4_43)</u> |  |  |
| **Operational & Portfolio Information - Office Property Investments** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Tenant Diversification | <u>[20](#iadd70805bcca4717ab5b271bc66524e4_46)</u> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Tenant Credit Rating & Lease Distribution Information | <u>[22](#iadd70805bcca4717ab5b271bc66524e4_49)</u> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Leased Percentage Information | <u>[23](#iadd70805bcca4717ab5b271bc66524e4_52)</u> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Rental Rate Roll Up / Roll Down Analysis | <u>[24](#iadd70805bcca4717ab5b271bc66524e4_55)</u> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Lease Expiration Schedule | <u>[25](#iadd70805bcca4717ab5b271bc66524e4_58)</u> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Quarterly Lease Expirations | <u>[26](#iadd70805bcca4717ab5b271bc66524e4_61)</u> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Annual Lease Expirations | <u>[27](#iadd70805bcca4717ab5b271bc66524e4_64)</u> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contractual Tenant Improvements & Leasing Commissions | <u>[28](#iadd70805bcca4717ab5b271bc66524e4_67)</u> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Geographic Diversification | <u>[29](#iadd70805bcca4717ab5b271bc66524e4_70)</u> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Geographic Diversification by Location Type | <u>[30](#iadd70805bcca4717ab5b271bc66524e4_73)</u> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Industry Diversification | <u>[31](#iadd70805bcca4717ab5b271bc66524e4_76)</u> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Property Investment Activity | <u>[32](#iadd70805bcca4717ab5b271bc66524e4_79)</u> |  |  |

---

---

| |
|:---|
| **<u>Notice to Readers:</u>** |
| Please refer to page <u>[41](#iadd70805bcca4717ab5b271bc66524e4_100)</u> for 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 page <u>[34](#iadd70805bcca4717ab5b271bc66524e4_85)</u>. 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 located primarily in major U.S. Sunbelt markets. 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. The Company was designated an Energy Star Partner of the Year for both 2021 and 2022, and it was the only office REIT headquartered in the Southeast to receive those designations. At the end of the fourth quarter of 2022, approximately 87% of the Company's square footage was Energy Star certified and approximately 50% 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<br>December 31, 2022 | As of<br>December 31, 2021 |
| Number of consolidated in-service office properties <sup>(1)</sup> | 51 | 55 |
| Rentable square footage (in thousands) <sup>(1)</sup>  | 16658 | 17051 |
| Percent leased <sup>(2)</sup>  | 86.7% | 85.5% |
| Capitalization (in thousands): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total debt - GAAP | $1983681 | $1877790 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total principal amount of debt outstanding (excludes premiums, discounts, and deferred financing costs) | $1997000 | $1890000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity market capitalization <sup>(3)</sup> | $1131941 | $2262150 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total market capitalization <sup>(3)</sup> | $3128941 | $4152150 |
| Total principal amount of debt / Total market capitalization <sup>(3)</sup> | 63.8% | 45.5% |
| Average net principal amount of debt to Core EBITDA - quarterly <sup>(4)</sup> | 6.4 x | 6.0 x |
| Average net principal amount of debt to Core EBITDA - trailing twelve months <sup>(5)</sup> | 6.0 x | 5.7 x |
| Total principal amount of debt / Total gross assets <sup>(6)</sup> | 37.6% | 37.1% |
| Common stock data: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;High closing price during quarter | $10.92 | $19.37 |
| &nbsp;&nbsp;&nbsp;&nbsp;Low closing price during quarter | $8.80 | $17.11 |
| &nbsp;&nbsp;&nbsp;&nbsp;Closing price of common stock at period end | $9.17 | $18.38 |
| &nbsp;&nbsp;&nbsp;&nbsp;Weighted average fully diluted shares outstanding during quarter (in thousands) | 123633 | 124412 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shares of common stock issued and outstanding at period end (in thousands) | 123440 | 123077 |
| &nbsp;&nbsp;&nbsp;&nbsp;Annual regular dividend per share <sup>(7)</sup> | $0.84 | $0.84 |
| Rating / Outlook: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Standard & Poor's | BBB / Stable | BBB / Stable |
| &nbsp;&nbsp;&nbsp;&nbsp;Moody's | Baa2 / Stable | Baa2 / Stable |
| Employees | 149 | 134 |

---

(1) As of December 31, 2022, our consolidated office portfolio consisted of 51 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 page <u>[23](#iadd70805bcca4717ab5b271bc66524e4_52)</u> for additional analyses regarding Piedmont's leased percentage.

(3) Reflects common stock closing price, shares outstanding and principal amount of debt outstanding as of the end of the reporting period, as appropriate.

(4) For the purposes of this calculation, we annualize the Core EBITDA for the quarter and use the average daily principal 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.

(5) For the purposes of this calculation, we use the sum of Core EBITDA for the trailing four quarters and the average daily principal balance of debt outstanding for the trailing four quarters, less the average of cash and cash equivalents and escrow deposits and restricted cash as of the end of each quarter in the trailing four quarter period.

(6) 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.

(7) Total of the regular dividends per share for which record dates occurred over the last four quarters.

------

**Piedmont Office Realty Trust, Inc.**

**Investor Information**

---

| |
|:---|
| **Corporate** |
| 5565 Glenridge Connector, Suite 450 |
| Atlanta, Georgia 30342 |
| 770.418.8800 |
| www.piedmontreit.com |

---

---

| | | | |
|:---|:---|:---|:---|
| **Executive Management** | **Executive Management** | **Executive Management** | **Executive Management** |
| **C. Brent Smith** | **Robert E. Bowers** | **George Wells** | |
| Chief Executive Officer, President | Chief Financial and Administrative Officer | Chief Operating Officer and | |
| and Director | and Executive Vice President | Executive Vice President | |
| **Kevin D. Fossum** | **Edward H. Guilbert, III** | **Christopher A. Kollme** | **Damian J. Miller** |
| Senior Vice President, | Executive Vice President, Finance, | Executive Vice President, | Executive Vice President, |
| Property Management and | Assistant Secretary and Treasurer | Investments | Dallas |
| Minneapolis | *Investor Relations Contact* | | |
| **Laura P. Moon** | **Alex Valente** | **Robert K. Wiberg** | |
| Chief Accounting Officer and | Executive Vice President, | Executive Vice President, | |
| Senior Vice President | Southeast Region | Northeast Region and Co-Head of | |
| | | Development | |
| **Board of Directors** | **Board of Directors** | **Board of Directors** | **Board of Directors** |
| **Frank C. McDowell** | **Dale H. Taysom** | **Kelly H. Barrett** | **Glenn G. Cohen** |
| Director, Chair of the Board of Directors, and | Director, Vice Chair of the | Director, Chair of the Audit Committee, | Director, Chair of the Compensation |
| Member of the Compensation and Governance | Board of Directors, and Member of the | and Member of the Governance Committee | Committee, and Member of the Audit |
| Committees | Audit and Capital Committees | | and Capital Committees |
| **Venkatesh S. Durvasula** | **Mary Hager** | **Barbara B. Lang** | **C. Brent Smith** |
| Director and Member of the Capital Committee | Director and Member of the | Director, Chair of the Governance Committee | Chief Executive Officer, President |
| | Governance Committee | (including ESG), and Member of the | and Director |
| | | Compensation Committee | |
| **Jeffrey L. Swope** | | | |
| Director, Chair of the Capital | | | |
| Committee, and Member of the | | | |
| Compensation Committee | | | |

---

---

| | | | |
|:---|:---|:---|:---|
| **Transfer Agent** | **Corporate Counsel** | **Institutional Analyst Contact** | **Investor Relations** |
| **Computershare** | **King & Spalding** | Phone: 770.418.8592 | Phone: 866.354.3485 |
| P.O. Box 43006 | 1180 Peachtree Street, NE | research.analysts@piedmontreit.com | investor.services@piedmontreit.com |
| Providence, RI 02940-3078 | Atlanta, GA 30309 |  | www.piedmontreit.com |
| Phone: 866.354.3485 | Phone: 404.572.4600 |  |  |

---

------

**Piedmont Office Realty Trust, Inc.**

**Earnings Release**

**Piedmont Office Realty Trust Reports Fourth Quarter and Annual 2022 Results** 

**ATLANTA, February 8, 2023**--Piedmont Office Realty Trust, Inc. ("Piedmont" or the "Company") (NYSE:PDM), an owner of Class A office properties located primarily in major U.S. Sunbelt markets, today announced its results for the quarter and year ended December 31, 2022.

**<u>Highlights for the Three Months and Year Ended December 31, 2022:</u>**

**<u>Financial Results:</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** |
| *(in 000s other than per share amounts and %)* | **December 31, 2022** | **December 31, 2021** | **December 31, 2022** | **December 31, 2021** |
| Net income/(loss) applicable to Piedmont | $75569 | $(31750) | $146830 | $(1153) |
| Net income/(loss) per share applicable to common stockholders - diluted | $0.61 | $(0.26) | $1.19 | $(0.01) |
| Gain on sale of real estate assets | $101055 | $0 | $151729 | $0 |
| Impairment losses | $25981 | $41000 | $25981 | $41000 |
| Core Funds From Operations ("Core FFO") applicable to common stock | $61235 | $63009 | $247070 | $245422 |
| Core FFO per diluted share | $0.50 | $0.51 | $2.00 | $1.97 |
| Increase in Same Store Net Operating Income ("Same Store NOI") - Cash Basis | 1.6% |  | 1.9% |  |
| (Decrease)\Increase in Same Store NOI - Accrual Basis | (0.7)% |  | 1.1% |  |
| Adjusted Funds From Operations applicable to common stock | $47082 | $39399 | $178040 | $160134 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** Net income applicable to Piedmont for the three months ended December 31, 2022 included the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ $101.1 million in gain on sale of real estate assets primarily associated with the previously announced sales of the Company's two Cambridge, MA properties during the fourth quarter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ $26.0 million of non-cash impairment losses associated with: (a) a partial write down of the Company's goodwill balance driven by the decline of the stock market and the Company's stock price during the fourth quarter; and (b) the write down of one property as a result of a reduction in the assumed hold period for that particular asset;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ $2.2 million in severance costs associated with a reorganization of the Company's management structure during the fourth quarter; and,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ A $6.8 million increase in interest expense driven by a higher average debt balance during the fourth quarter as a result of the acquisition of 1180 Peachtree Street in Atlanta during the third quarter and higher interest rates on the Company's variable rate debt. Other income for the fourth quarter also decreased approximately $2.5 million due to the payoff of notes receivable due from the purchaser of the Company's New Jersey Portfolio in March of 2022. This increase in interest expense and decrease in other income were partially offset by additional property operating income as a result of successful leasing, rental rate roll ups and asset recycling activity over the last twelve months.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net loss applicable to Piedmont for the fourth quarter of 2021 did not include any gain on sale of real estate assets or severance costs, but did include a $41.0 million impairment loss on an asset subsequently sold during 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Core FFO, which removes the impact of the gains on sale of real estate assets, impairment losses, and severance costs enumerated above, as well as depreciation and amortization expense, was $0.50 per diluted share for the fourth quarter of 2022 as compared to $0.51 per diluted share for the fourth quarter of 2021, with the $.01 per diluted share decrease primarily attributable to the $6.8 million, or $.06 per diluted share, increase in interest expense during the fourth quarter of 2022 noted above.

------

**<u>Leasing:</u>**

---

| | | |
|:---|:---|:---|
| | **Three Months Ended December 31, 2022** | **Year Ended December 31, 2022** |
| # of transactions | 42 | 203 |
| Total leasing sf | 433000 | 2153000 |
| New tenant leasing sf | 164000 | 763000 |
| Cash rent roll up | 6.5% | 9.7% |
| Accrual rent roll up | 11.5% | 17.2% |
| Leased Percentage as of period end | 86.7% |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company completed approximately 2.2 million square feet of leasing transactions during 2022, including the largest amount of annual new tenant leasing since 2018.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The largest new tenant lease completed during the fourth quarter was an approximately 28,000 square foot lease with Cadence Bank through 2035 at 999 Peachtree Street in Atlanta, GA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The largest renewal and expansion lease completed during the fourth quarter totaled approximately 58,000 square feet with Institute for Justice through 2037 at Arlington Gateway in Arlington, VA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company's scheduled lease expirations for 2023 are low, representing approximately 7% of its annualized lease revenue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** As of December 31, 2022, the Company had approximately 1.14 million square feet of executed leases for vacant space yet to commence or under rental abatement, representing approximately $33 million of future additional annual cash revenue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company's leased percentage as of December 31, 2022 was 86.7%, up from 85.5% at December 31, 2021, and down 0.1% for the fourth quarter of 2022 due to the disposition of the 94% leased Cambridge, MA assets during the quarter.

**<u>Capital Markets:</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• During the fourth quarter, the Company completed the sale of its two, 94% leased, Cambridge, MA properties, One Brattle Square and 1414 Massachusetts, resulting in a $102.6 million gain on sale of real estate assets that is included in the Company's results of operations. The combined approximately $160 million in sales proceeds from the two transactions was used to pay off the outstanding balance on the Company's $600 million line of credit, leaving the full capacity of the line available as of December 31, 2022.

**<u>Balance Sheet (including description of a subsequent event):</u>**

---

| | | |
|:---|:---|:---|
| | **December 31, 2022** | **December 31, 2021** |
| Total Real Estate Assets *(in millions)* | $3501 | $3245 |
| Total Assets *(in millions)* | $4086 | $3931 |
| Total Debt *(in millions)* | $1984 | $1878 |
| Weighted Average Cost of Debt | 3.89% | 2.93% |
| Debt-to-Gross Assets Ratio | 37.6% | 37.1% |
| Average Net Debt-to-Core EBITDA (ttm) | 6.0 x | 5.7 x |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• During the fourth quarter, the Company addressed its largest near-term debt maturity by amending its $200 million unsecured term loan facility to extend the final maturity date to June 2025. All other terms of the facility remain unchanged.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As previously announced, on January 31, 2023, the Company also entered into an additional new $215 million term loan facility priced at adjusted SOFR + 105 bps with a final extended maturity date of January 31, 2025. The Company intends to use the proceeds from the facility, along with a combination of cash on hand, proceeds from select property dispositions, and/or draws on its $600 million line of credit to repay its $350 million in Unsecured Senior Notes that mature June 1, 2023.

------

**<u>ESG and Operations:</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• During the fourth quarter, Piedmont received its inaugural GRESB<sup>®</sup> assessment, achieving an overall 4 star designation and "Green Star" recognition. The Company's annual ESG Report which includes Sustainability Accounting Standards Board (SASB) metrics and information that aligns with the Task Force on Climate-related Financial Disclosures (TCFD) framework is available on the Company's website at www.piedmontreit.com/ESG.

Commenting on annual and fourth quarter results, Brent Smith, Piedmont's President and Chief Executive Officer, said, "Despite facing the challenging operating and economic environment that unfolded during 2022, we were able to accomplish a number of key objectives for the year, including the execution of approximately 2.2 million square feet of leasing at meaningfully higher rental rates and the completion of a strategic Midtown Atlanta acquisition paired with several non-core dispositions that furthered our concentration in the Sunbelt to over two-thirds of our annualized lease revenue. We also strengthened our cash position, increasing liquidity ahead of our 2023 debt maturity and bolstering our balance sheet. The fourth quarter also reflects a continuation of these same annual themes: the completion of approximately 433,000 square feet of total leasing, 164,000 square feet of which related to new tenant leases; the completion of the disposition of our Cambridge, MA assets, resulting in the recognition of a nine-digit gain; and the extension of our most near-term debt maturity. Looking ahead, we are encouraged by the approximately 230,000 square feet of leasing already executed thus far in 2023, with over 100,000 square feet of that for new tenant space, demonstrating that leasing velocity has not wavered compared to last year."

**First Quarter 2023 Dividend** 

As previously announced, on February 1, 2023, the board of directors of Piedmont declared a dividend for the first quarter of 2023 in the amount of $0.21 per share on its common stock to stockholders of record as of the close of business on February 24, 2023, payable on March 17, 2023.

**Guidance for 2023**

Due to higher projected interest costs, the Company is introducing the following guidance for the year ending December 31, 2023:

---

| | | |
|:---|:---|:---|
| *(in millions, except per share data)* | Low | High |
| Net income | ($1) | $1 |
| Add: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 144 | 151 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization | 80 | 84 |
| Core FFO applicable to common stock | $223 | $236 |
| Core FFO per diluted share | $1.80 | $1.90 |

---

The Company anticipates continued growth in its Property NOI and SSNOI during the forthcoming year ending December 31, 2023.

Executed leasing activity for 2023 is estimated to be in the range of 1.6 to 2.0 million square feet with year-end leased percentage anticipated to be between 87-88%, before the impacts of acquisition and disposition activity.

This guidance is based on information available to management as of the date of this release and reflects management's view of current market conditions, including the following specific assumptions and projections:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The largest impact on 2023 guidance is increased interest expense. With an over 400 bps increase in the Federal Funds Rate rates during 2022 and further increases projected during 2023, along with two new floating rate term loans priced at adjusted SOFR plus 100 and 105 bps, respectively, replacing $350 million of 10-year bonds maturing in June at an effective rate of 3.43%, projected interest expense for 2023 is estimated to increase approximately $27 million over 2022 total interest expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 2023 guidance includes General and Administrative expenses of approximately $29 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• No speculative acquisitions or dispositions are included in the above guidance. The Company will adjust guidance throughout the year as such transactions occur.

Note that actual results could differ materially from these estimates and individual quarters may fluctuate on both a cash basis and an accrual basis due to the timing of any future dispositions, significant 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 expense, and one-time revenue or expense events.

------

**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), Adjusted Funds from Operations (AFFO), and Same Store Net Operating Income (Same Store NOI). Definitions of these non-GAAP measures are provided on page <u>[34](#iadd70805bcca4717ab5b271bc66524e4_85)</u> and reconciliations are provided beginning on page <u>[36](#iadd70805bcca4717ab5b271bc66524e4_91)</u>. <br>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| **Selected Operating Data** | **12/31/2022** | **9/30/2022** | **6/30/2022** | **3/31/2022** | **12/31/2021** |
| **Selected Operating Data** | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Percent leased <sup>(1)</sup> | 86.7% | 86.8% | 87.0% | 87.0% | 85.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Percent leased - economic <sup>(2)</sup> | 81.1% | 80.6% | 80.7% | 81.4% | 81.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenues | $147208 | $144100 | $136309 | $136149 | $138164 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income / (loss) applicable to Piedmont | $75569 | $3331 | $7966 | $59964 | -$31750 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income / (loss) per share applicable to common stockholders - diluted | $0.61 | $0.03 | $0.06 | $0.49 | -$0.26 |
| &nbsp;&nbsp;&nbsp;&nbsp;Core EBITDA | $82186 | $78805 | $75591 | $76956 | $77130 |
| &nbsp;&nbsp;&nbsp;&nbsp;Core FFO applicable to common stock | $61235 | $61352 | $61620 | $62863 | $63009 |
| &nbsp;&nbsp;&nbsp;&nbsp;Core FFO per share - diluted | $0.50 | $0.50 | $0.50 | $0.51 | $0.51 |
| &nbsp;&nbsp;&nbsp;&nbsp;AFFO applicable to common stock | $47082 | $43482 | $48900 | $38576 | $39399 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross regular dividends <sup>(3)</sup> | $25918 | $25913 | $25912 | $25899 | $26048 |
| &nbsp;&nbsp;&nbsp;&nbsp;Regular dividends per share <sup>(3)</sup> | $0.21 | $0.21 | $0.21 | $0.21 | $0.21 |
| &nbsp;&nbsp;&nbsp;&nbsp;Same store net operating income - accrual basis <sup>(4)</sup> | -0.7% | 0.3% | 2.8% | 2.5% | 5.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Same store net operating income - cash basis <sup>(4)</sup> | 1.6% | -0.3% | 1.8% | 5.1% | 5.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Rental rate roll up / roll down - accrual rents <sup>(5)</sup> | 11.5% | 37.6% | 12.2% | 12.9% | 6.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Rental rate roll up / roll down - cash rents <sup>(5)</sup> | 6.5% | 33.1% | 2.5% | 4.8% | 3.0% |
| **Selected Balance Sheet Data** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total real estate assets, net | $3500624 | $3572591 | $3139587 | $3147362 | $3245311 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $4085525 | $4185493 | $3695554 | $3699640 | $3930665 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | $2236270 | $2388162 | $1879891 | $1869166 | $2143242 |
| **Ratios & Information for Debt Holders** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Core EBITDA margin <sup>(6)</sup> | 55.8% | 54.7% | 55.5% | 56.5% | 55.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Fixed charge coverage ratio <sup>(7)</sup> | 3.8 x | 4.3 x | 5.1 x | 5.2 x | 5.2 x |
| &nbsp;&nbsp;&nbsp;&nbsp;Average net principal amount of debt to Core EBITDA - quarterly <sup>(8)</sup> | 6.4 x | 6.2 x | 5.5 x | 5.9 x | 6.0 x |
| &nbsp;&nbsp;&nbsp;&nbsp;Total gross real estate assets <sup>(9)</sup> | $4506328 | $4587669 | $4117177 | $4097332 | $4206993 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total debt - GAAP | $1983681 | $2145408 | $1674778 | $1669553 | $1877790 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net principal amount of debt <sup>(10)</sup> | $1977400 | $2146156 | $1681144 | $1672332 | $1881140 |

---

(1) Please refer to page <u>[23](#iadd70805bcca4717ab5b271bc66524e4_52)</u> 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.

(3) Dividends are reflected in the quarter in which the record date occurred.

(4) Please refer to the three pages starting with page <u>[13](#iadd70805bcca4717ab5b271bc66524e4_31)</u> for reconciliations to net income and additional same store net operating income information. The statistic provided for each of the prior quarters is based on the same store property population applicable at the time that the metric was initially reported.

(5) Please refer to page <u>[24](#iadd70805bcca4717ab5b271bc66524e4_55)</u> for additional roll up / roll down analysis information.

(6) Core EBITDA margin is calculated as Core EBITDA divided by total revenues.

(7) The fixed charge coverage ratio is calculated as Core EBITDA divided by the sum of interest expense, principal amortization (none during periods presented), capitalized interest and preferred dividends (none during periods presented). The Company had capitalized interest of $1,002,603 for the quarter ended December 31, 2022, $1,094,713 for the quarter ended September 30, 2022, $1,117,131 for the quarter ended June 30, 2022, $963,350 for the quarter ended March 31, 2022, and $994,675 for the quarter ended December 31, 2021.

(8) For the purposes of this calculation, we annualize the Core EBITDA for the quarter and use the average daily principal 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.

(9) 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.

(10) Net principal amount of debt is calculated and defined as the total principal amount of debt outstanding minus cash and cash equivalents and escrow deposits and restricted cash all as of the end of the period.

------

**Piedmont Office Realty Trust, Inc.**

**Consolidated Balance Sheets**

***Unaudited (in thousands)*** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **December 31, 2022** | **September 30, 2022** | **June 30, 2022** | **March 31, 2022** | **December 31, 2021** |
| **Assets:** | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Real estate, at cost: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Land assets | $567244 | $578722 | $521789 | $521789 | $529941 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buildings and improvements | 3682000 | 3751722 | 3389650 | 3351807 | 3374903 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buildings and improvements, accumulated depreciation | (915010) | (926357) | (892131) | (863306) | (861206) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intangible lease asset | 205074 | 212248 | 164194 | 173017 | 178157 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intangible lease asset, accumulated amortization | (90694) | (88721) | (85459) | (86664) | (83777) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Construction in progress | 52010 | 44977 | 41544 | 50719 | 43406 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Real estate assets held for sale, gross |  |  |  |  | 80586 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Real estate assets held for sale, accumulated depreciation & amortization |  |  |  |  | (16699) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total real estate assets | 3500624 | 3572591 | 3139587 | 3147362 | 3245311 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | 16536 | 10653 | 6397 | 7211 | 7419 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tenant receivables, net of allowance for doubtful accounts | 4762 | 7796 | 5164 | 3095 | 2995 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Straight line rent receivable | 172019 | 173122 | 168797 | 164776 | 162632 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes receivable |  |  |  |  | 118500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Escrow deposits and restricted cash | 3064 | 2191 | 1459 | 1457 | 1441 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | 17152 | 23925 | 26955 | 21318 | 20485 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill | 82937 | 98918 | 98918 | 98918 | 98918 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate swap | 4183 | 3760 | 996 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred lease costs, gross | 505979 | 510936 | 459038 | 466234 | 469671 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred lease costs, accumulated amortization | (221731) | (218399) | (211757) | (210731) | (205100) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets held for sale, gross |  |  |  |  | 9389 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets held for sale, accumulated amortization |  |  |  |  | (996) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $**4085525** | $**4185493** | $**3695554** | $**3699640** | $**3930665** |
| **Liabilities:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unsecured debt, net of discount | $1786681 | $1948408 | $1674778 | $1669553 | $1877790 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Secured debt | 197000 | 197000 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable, accrued expenses, and accrued capital expenditures | 135663 | 111262 | 99724 | 83609 | 140501 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income | 59977 | 70798 | 72422 | 79493 | 80686 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intangible lease liabilities, less accumulated amortization | 56949 | 60694 | 32967 | 36077 | 39341 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate swaps |  |  |  | 434 | 4924 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** | **2236270** | **2388162** | **1879891** | **1869166** | **2143242** |
| **Stockholders' equity:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock | 1234 | 1234 | 1234 | 1233 | 1231 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional paid in capital | 3711005 | 3709234 | 3707833 | 3706207 | 3701798 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cumulative distributions in excess of earnings | (1855893) | (1905544) | (1882962) | (1865016) | (1899081) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive loss | (8679) | (9194) | (12050) | (13573) | (18154) |
| **Piedmont stockholders' equity** | **1847667** | **1795730** | **1814055** | **1828851** | **1785794** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-controlling interest | 1588 | 1601 | 1608 | 1623 | 1629 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total stockholders' equity** | **1849255** | **1797331** | **1815663** | **1830474** | **1787423** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities, redeemable common stock and stockholders' equity** | $**4085525** | $**4185493** | $**3695554** | $**3699640** | $**3930665** |
| *Common stock outstanding at end of period* | *123440* | *123395* | *123390* | *123331* | *123077* |

---

------

**Piedmont Office Realty Trust, Inc.**

**Consolidated Statements of Income**

***Unaudited (in thousands except for per share data)***

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **12/31/2022** | **9/30/2022** | **6/30/2022** | **3/31/2022** | **12/31/2021** |
| **Revenues:** | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Rental income <sup>(1)</sup> | $117148 | $114280 | $110244 | $109732 | $111203 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tenant reimbursements <sup>(1)</sup> | 24958 | 25292 | 21907 | 22180 | 23110 |
| &nbsp;&nbsp;&nbsp;&nbsp;Property management fee revenue | 395 | 303 | 326 | 651 | 576 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other property related income | 4707 | 4225 | 3832 | 3586 | 3275 |
|  | **147208** | **144100** | **136309** | **136149** | **138164** |
| **Expenses:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Property operating costs | 59763 | 59039 | 53634 | 53622 | 56083 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 34788 | 34941 | 32372 | 31515 | 31952 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization | 23915 | 23290 | 21480 | 22252 | 22014 |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment loss <sup>(2)</sup> | 25981 |  |  |  | 41000 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 7915 | 6590 | 7027 | 7595 | 7835 |
|  | **152362** | **123860** | **114513** | **114984** | **158884** |
| **Other income / (expense):** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (20739) | (17244) | (13775) | (13898) | (13917) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income / (expense) | 408 | 335 | (57) | 2024 | 2882 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain / (loss) on sale of real estate <sup>(2)</sup> | 101055 |  | 1 | 50673 |  |
| **Net income / (loss)** | **75570** | **3331** | **7965** | **59964** | **(31755)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: Net (income) / loss applicable to noncontrolling interest | (1) |  | 1 |  | 5 |
| **Net income / (loss) applicable to Piedmont** | $**75569** | $**3331** | $**7966** | $**59964** | $**(31750)** |
| *Weighted average common shares outstanding - diluted* | *123633* | *123697* | *123679* | *123510* | *123742* |
| **Net income / (loss) per share applicable to common stockholders - diluted** | $**0.61** | $**0.03** | $**0.06** | $**0.49** | $**(0.26)** |
| *Common stock outstanding at end of period* | *123440* | *123395* | *123390* | *123331* | *123077* |

---

(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 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 2022 was primarily related to the sales of One Brattle Square and 1414 Massachusetts Avenue, both in Cambridge, MA. The impairment loss reflected in the fourth quarter of 2022 was related to (a) a partial write down of the Company's goodwill balance driven by the decline of the stock market and the Company's stock price during the fourth quarter; and (b) the write down of one property as a result of a reduction in the assumed hold period for that particular asset. The gain on sale of real estate reflected in the first quarter of 2022 was primarily related to the sale of 225 and 235 Presidential Way in Woburn, MA. The impairment loss reflected in the fourth quarter of 2021 was related to a reduction in the holding period assumptions for Two Pierce Place in Itasca, IL. Two Pierce Place was subsequently sold in the first quarter of 2022.

------

**Piedmont Office Realty Trust, Inc.**

**Consolidated Statements of Income**

***Unaudited (in thousands except for per share data)*** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
| | **12/31/2022** | **12/31/2021** | **Change ($)** | **Change (%)** | **12/31/2022** | **12/31/2021** | **Change ($)** | **Change (%)** |
| **Revenues:** | | | | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Rental income <sup>(1)</sup> | $117148 | $111203 | $5945 | 5.3% | $451404 | $427174 | $24230 | 5.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Tenant reimbursements <sup>(1)</sup> | 24958 | 23110 | 1848 | 8.0% | 94337 | 87445 | 6892 | 7.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Property management fee revenue | 395 | 576 | (181) | (31.4)% | 1675 | 2496 | (821) | (32.9)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other property related income | 4707 | 3275 | 1432 | 43.7% | 16350 | 11595 | 4755 | 41.0% |
|  | 147208 | 138164 | 9044 | 6.5% | 563766 | 528710 | 35056 | 6.6% |
| **Expenses:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Property operating costs | 59763 | 56083 | (3680) | (6.6)% | 226058 | 210932 | (15126) | (7.2)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 34788 | 31952 | (2836) | (8.9)% | 133616 | 120615 | (13001) | (10.8)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization | 23915 | 22014 | (1901) | (8.6)% | 90937 | 85992 | (4945) | (5.8)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment loss <sup>(2)</sup> | 25981 | 41000 | 15019 | 36.6% | 25981 | 41000 | 15019 | 36.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 7915 | 7835 | (80) | (1.0)% | 29127 | 30252 | 1125 | 3.7% |
|  | 152362 | 158884 | 6522 | 4.1% | 505719 | 488791 | (16928) | (3.5)% |
| **Other income / (expense):** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (20739) | (13917) | (6822) | (49.0)% | (65656) | (51292) | (14364) | (28.0)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income / (expense) | 408 | 2882 | (2474) | (85.8)% | 2710 | 10206 | (7496) | (73.4)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain / (loss) on sale of real estate <sup>(3)</sup> | 101055 |  | 101055 | 100.0% | 151729 |  | 151729 | 100.0% |
| **Net income / (loss)** | **75570** | **(31755)** | **107325** | **338.0%** | **146830** | **(1167)** | **147997** | **12681.8%** |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: Net (income) / loss applicable to noncontrolling interest | (1) | 5 | (6) | (120.0)% |  | 14 | (14) | (100.0)% |
| **Net income / (loss) applicable to Piedmont** | $**75569** | $**(31750)** | $**107319** | **338.0%** | $**146830** | $**(1153)** | $**147983** | **12834.6%** |
| *Weighted average common shares outstanding - diluted* | *123633* | *123742* |  |  | *123524* | *123978* |  |  |
| **Net income / (loss) per share applicable to common stockholders - diluted** | $0.61 | $(0.26) |  |  | $1.19 | $(0.01) |  |  |
| *Common stock outstanding at end of period* | *123440* | *123077* |  |  | *123440* | *123077* |  |  |

---

(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 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 impairment loss for the three months and the twelve months ended December 31, 2022 was related to (a) a partial write down of the Company's goodwill balance driven by the decline of the stock market and the Company's stock price during the fourth quarter; and (b) the write down of one property as a result of a reduction in the assumed hold period for that particular asset. The impairment loss for the three months and the twelve months ended December 31, 2021 was related to a reduction in the holding period assumptions for Two Pierce Place in Itasca, IL. Two Pierce Place was subsequently sold in the first quarter of 2022.

(3) The gain on sale of real estate for the three months ended December 31, 2022 was primarily related to the sales of One Brattle Square and 1414 Massachusetts Avenue, both in Cambridge, MA. The gain on sale of real estate for the twelve months ended December 31, 2022 was primarily related to the sales of One Brattle Square and 1414 Massachusetts Avenue, both in Cambridge, MA, and 225 and 235 Presidential Way in Woburn, MA.

------

**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** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
| | **12/31/2022** | **12/31/2021** | **12/31/2022** | **12/31/2021** |
| **GAAP net income / (loss) applicable to common stock** | $**75569** | $**(31750)** | $**146830** | $**(1153)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation <sup>(1) (2)</sup> | 34587 | 31756 | 132849 | 119629 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization <sup>(1)</sup> | 23905 | 22003 | 90891 | 85946 |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment loss | 25981 | 41000 | 25981 | 41000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss / (gain) on sale of properties | (101055) |  | (151729) |  |
| **NAREIT funds from operations applicable to common stock** | **58987** | **63009** | **244822** | **245422** |
| &nbsp;&nbsp;&nbsp;Adjustments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Severance costs associated with fourth quarter 2022 management reorganization | 2248 |  | 2248 |  |
| **Core funds from operations applicable to common stock** | **61235** | **63009** | **247070** | **245422** |
| &nbsp;&nbsp;&nbsp;Adjustments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt issuance costs, fair market adjustments on notes payable, and discount on senior notes | 926 | 781 | 3389 | 2857 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation of non real estate assets | 191 | 187 | 728 | 949 |
| &nbsp;&nbsp;&nbsp;&nbsp;Straight-line effects of lease revenue <sup>(1)</sup> | (2356) | (1939) | (11230) | (10566) |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation adjustments | 1717 | 2772 | 4833 | 7924 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of lease-related intangibles <sup>(1)</sup> | (3713) | (3098) | (13426) | (11290) |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-incremental capital expenditures <sup>(3)</sup> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Building/Construction/Development | (3967) | (7660) | (19118) | (33410) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tenant Improvements | (2934) | (10223) | (20989) | (28892) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Leasing Costs | (4017) | (4430) | (13217) | (12860) |
| **Adjusted funds from operations applicable to common stock** | $**47082** | $**39399** | $**178040** | $**160134** |
| Weighted average common shares outstanding - diluted | 123633 | 124412 | 123524 | 124455 |
| Funds from operations per share (diluted) | $0.48 | $0.51 | $1.98 | $1.97 |
| Core funds from operations per share (diluted) | $0.50 | $0.51 | $2.00 | $1.97 |
| *Common stock outstanding at end of period* | *123440* | *123077* | *123440* | *123077* |

---

(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 <u>[34](#iadd70805bcca4717ab5b271bc66524e4_85)</u>.

------

**Piedmont Office Realty Trust, Inc.**

**Same Store Net Operating Income (Cash Basis)**

***Unaudited (in thousands)*** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
| | **12/31/2022** | **12/31/2021** | **12/31/2022** | **12/31/2021** |
| **Net income / (loss) applicable to Piedmont** | $**75569** | $**(31750)** | $**146830** | $**(1153)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income / (loss) applicable to noncontrolling interest | 1 | (5) |  | (14) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 20739 | 13917 | 65656 | 51292 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation <sup>(1)</sup> | 34778 | 31943 | 133577 | 120578 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization <sup>(1)</sup> | 23905 | 22003 | 90891 | 85946 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization attributable to noncontrolling interests | 20 | 22 | 85 | 84 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment loss | 25981 | 41000 | 25981 | 41000 |
| &nbsp;&nbsp;&nbsp;&nbsp;(Gain) / loss on sale of properties | (101055) |  | (151729) |  |
| **EBITDAre** | **79938** | **77130** | **311291** | **297733** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Severance costs associated with fourth quarter 2022 management reorganization | 2248 |  | 2248 |  |
| **Core EBITDA** <sup>(2)</sup> | **82186** | **77130** | **313539** | **297733** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General & administrative expenses | 5668 | 7835 | 26879 | 30252 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-cash general reserve for uncollectible accounts <sup>(3)</sup> | (1000) | (965) | (3000) | (553) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management fee revenue <sup>(4)</sup> | (261) | (323) | (1004) | (1269) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other (income) / expense <sup>(1) (5)</sup> | (193) | (2667) | (1847) | (9089) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Straight-line effects of lease revenue <sup>(1)</sup> | (2356) | (1939) | (11230) | (10566) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Straight-line effects of lease revenue attributable to noncontrolling interests | (4) | 1 | (10) | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of lease-related intangibles <sup>(1)</sup> | (3713) | (3098) | (13426) | (11290) |
| **Property net operating income (cash basis)** | **80327** | **75974** | **309901** | **295221** |
| &nbsp;&nbsp;&nbsp;Deduct net operating (income) / loss from: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisitions <sup>(6)</sup> | (7928) | (2460) | (18720) | (2460) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dispositions <sup>(7)</sup> | (2342) | (4555) | (10714) | (17572) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other investments <sup>(8)</sup> | 224 | 217 | 763 | 841 |
| **Same store net operating income (cash basis)** | $**70281** | $**69176** | $**281230** | $**276030** |
| *Change period over period* | *1.6 %* | *N/A* | *1.9 %* | *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. 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 December 31, 2022, Piedmont recognized $1.0 million of termination income, as compared with $0.2 million during the same period in 2021. During the twelve months ended December 31, 2022, Piedmont recognized $2.1 million of termination income, as compared with $3.0 million during the same period in 2021.

(3) 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.

(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 999 Peachtree Street in Atlanta, GA, purchased in the fourth quarter of 2021, and 1180 Peachtree Street in Atlanta, GA, purchased in the third quarter of 2022.

(7) Dispositions include Two Pierce Place in Itasca, IL and 225 and 235 Presidential Way in Woburn, MA, sold in the first quarter of 2022, and One Brattle Square and 1414 Massachusetts Avenue in Cambridge, MA, sold in the fourth quarter of 2022.

(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 <u>[33](#iadd70805bcca4717ab5b271bc66524e4_82)</u>.The operating results from 222 South Orange Avenue in Orlando, FL, are included in this line item.

------

**Piedmont Office Realty Trust, Inc.**

**Same Store Net Operating Income (Accrual Basis)**

***Unaudited (in thousands)***

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
| | **12/31/2022** | **12/31/2021** | **12/31/2022** | **12/31/2021** |
| **Net income / (loss) applicable to Piedmont** | $**75569** | $**(31750)** | $**146830** | $**(1153)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income / (loss) applicable to noncontrolling interest | 1 | (5) |  | (14) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 20739 | 13917 | 65656 | 51292 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation <sup>(1)</sup> | 34778 | 31943 | 133577 | 120578 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization <sup>(1)</sup> | 23905 | 22003 | 90891 | 85946 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization attributable to noncontrolling interests | 20 | 22 | 85 | 84 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment loss | 25981 | 41000 | 25981 | 41000 |
| &nbsp;&nbsp;&nbsp;&nbsp;(Gain) / loss on sale of properties | (101055) |  | (151729) |  |
| **EBITDAre** | **79938** | **77130** | **311291** | **297733** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Severance costs associated with fourth quarter 2022 management reorganization | 2248 |  | 2248 |  |
| **Core EBITDA** <sup>(2)</sup> | **82186** | **77130** | **313539** | **297733** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General & administrative expenses | 5668 | 7835 | 26879 | 30252 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management fee revenue <sup>(3)</sup> | (261) | (323) | (1004) | (1269) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other (income) / expense <sup>(1) (4)</sup> | (193) | (2667) | (1847) | (9089) |
| **Property net operating income (accrual basis)** | **87400** | **81975** | **337567** | **317627** |
| &nbsp;&nbsp;&nbsp;Deduct net operating (income) / loss from: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisitions <sup>(5)</sup> | (11363) | (3273) | (27055) | (3273) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dispositions <sup>(6)</sup> | (2389) | (4663) | (10826) | (18400) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other investments <sup>(7)</sup> | 123 | 275 | 651 | 1067 |
| **Same store net operating income (accrual basis)** | $**73771** | $**74314** | $**300337** | $**297021** |
| *Change period over period* | *(0.7) %* | *N/A* | *1.1 %* | *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. 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 December 31, 2022, Piedmont recognized $1.0 million of termination income, as compared with $0.2 million during the same period in 2021. During the twelve months ended December 31, 2022, Piedmont recognized $2.1 million of termination income, as compared with $3.0 million during the same period in 2021.

(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 999 Peachtree Street in Atlanta, GA, purchased in the fourth quarter of 2021, and 1180 Peachtree Street in Atlanta, GA, purchased in the third quarter of 2022.

(6) Dispositions include Two Pierce Place in Itasca, IL and 225 and 235 Presidential Way in Woburn, MA, sold in the first quarter of 2022, and One Brattle Square and 1414 Massachusetts Avenue in Cambridge, MA, sold in the fourth quarter of 2022.

(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 <u>[33](#iadd70805bcca4717ab5b271bc66524e4_82)</u>. The operating results from 222 South Orange Avenue in Orlando, FL, are included in this line item.

------

**Piedmont Office Realty Trust, Inc.**

**Same Store Net Operating Income (Financial Components)**

***Unaudited (in thousands)***

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
| | **12/31/2022** | **12/31/2021** | **Change ($)** | **Change (%)** | **12/31/2022** | **12/31/2021** | **Change ($)** | **Change (%)** |
| **Revenue** | | | | | | | | |
| Cash rental income <sup>(1)</sup> | $99076 | $97201 | $1875 | 1.9% | $389791 | $380743 | $9048 | 2.4% |
| Tenant reimbursements <sup>(2)</sup> | 22625 | 21626 | 999 | 4.6% | 88876 | 82464 | 6412 | 7.8% |
| Straight line effects of lease revenue | 755 | 1627 | (872) | (53.6)% | 7922 | 9533 | (1611) | (16.9)% |
| Amortization of lease-related intangibles | 1735 | 2546 | (811) | (31.9)% | 8185 | 10905 | (2720) | (24.9)% |
| **Total rents** | **124191** | **123000** | **1191** | **1.0%** | **494774** | **483645** | **11129** | **2.3%** |
| Other property related income <sup>(3)</sup> | 3618 | 3173 | 445 | 14.0% | 13944 | 12071 | 1873 | 15.5% |
| **Total revenue** | **127809** | **126173** | **1636** | **1.3%** | **508718** | **495716** | **13002** | **2.6%** |
| **Property operating expense** <sup>(4)</sup> | **54254** | **52075** | **(2179)** | **(4.2)%** | **209243** | **199557** | **(9686)** | **(4.9)%** |
| Property other income / (expense) | 216 | 216 |  | —% | 862 | 862 |  | —% |
| **Same store net operating income (accrual)** | $**73771** | $**74314** | $**(543)** | **(0.7)%** | $**300337** | $**297021** | $**3316** | **1.1%** |
| **Less:** |  |  |  |  |  |  |  |  |
| Straight line effects of lease revenue | (755) | (1627) | 872 | 53.6% | (7922) | (9533) | 1611 | 16.9% |
| Amortization of lease-related intangibles | (1735) | (2546) | 811 | 31.9% | (8185) | (10905) | 2720 | 24.9% |
| Non-cash general reserve for uncollectible accounts | (1000) | (965) | (35) | (3.6)% | (3000) | (553) | (2447) | (442.5)% |
| **Same store net operating income (cash)** | $**70281** | $**69176** | $**1105** | **1.6%** | $**281230** | $**276030** | $**5200** | **1.9%** |

---

(1) The increase in cash rental income for the three months and the twelve months ended December 31, 2022 as compared to the same periods in 2021 was primarily due to rental rate roll ups associated with new and renewal leasing activity along with contractual rent increases across the portfolio.

(2) The increase in tenant reimbursements for the three months and the twelve months ended December 31, 2022 as compared to the same periods in 2021 was primarily the result of the expiration of operating expense recovery abatements at several properties in the portfolio as well as an increase in recoverable operating expenses in 2022 in comparison to 2021 due to the increased physical utilization of our buildings.

(3) The increase in other property related income for the three months and the twelve months ended December 31, 2022 as compared to the same periods in 2021 was primarily related to increased transient parking demand across the portfolio as a result of post-pandemic increased business activity.

(4) The increase in property operating expense for the three months and the twelve months ended December 31, 2022 as compared to the same periods in 2021 was primarily associated with increased variable operating costs as a result of increasing physical office space utilization by tenants across our portfolio.

------

**Piedmont Office Realty Trust, Inc.**

**Capitalization Analysis**

***Unaudited (in thousands except for per share data)***

---

| | | |
|:---|:---|:---|
| | **As of**<br>**December 31, 2022** | **As of**<br>**December 31, 2021** |
| **Market Capitalization** | | |
| Common stock price | $9.17 | $18.38 |
| Total shares outstanding | 123440 | 123077 |
| Equity market capitalization <sup>(1)</sup> | $1131941 | $2262150 |
| Total debt - GAAP | $1983681 | $1877790 |
| Total principal amount of debt outstanding (excludes premiums, discounts, and deferred financing costs) | $1997000 | $1890000 |
| Total market capitalization <sup>(1)</sup> | $3128941 | $4152150 |
| Total principal amount of debt / Total market capitalization <sup>(1)</sup> | 63.8% | 45.5% |
| **Ratios & Information for Debt Holders** |  |  |
| Total gross assets <sup>(2)</sup> | $5312960 | $5098443 |
| Total principal amount of debt / Total gross assets <sup>(2)</sup> | 37.6% | 37.1% |
| Average net principal amount of debt to Core EBITDA - quarterly <sup>(3)</sup> | 6.4 x | 6.0 x |
| Average net principal amount of debt to Core EBITDA - trailing twelve months <sup>(4)</sup> | 6.0 x | 5.7 x |

---

(1) Reflects common stock closing price, shares outstanding, and principal amount of debt outstanding 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 principal 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.

(4) For the purposes of this calculation, we use the sum of Core EBITDA for the trailing four quarters and the average daily principal balance of debt outstanding for the trailing four quarters, less the average of cash and cash equivalents and escrow deposits and restricted cash as of the end of each quarter in the trailing four quarter period.

------

**Piedmont Office Realty Trust, Inc.**

**Debt Summary**

**As of December 31, 2022** 

***Unaudited ($ in thousands)***

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Floating Rate & Fixed Rate Debt** | **Floating Rate & Fixed Rate Debt** |  |  |  | ![floatingfixedrate.gif](floatingfixedrate.gif) |
| **Debt** <sup>(1)</sup> | **Principal Amount**<br>**Outstanding** | **Principal Amount**<br>**Outstanding** | **Weighted Average Stated**<br>**Interest Rate** <sup>(2)</sup> | **Weighted Average**<br>**Maturity** | ![floatingfixedrate.gif](floatingfixedrate.gif) |
|  |  |  |  |  | ![floatingfixedrate.gif](floatingfixedrate.gif) |
| Floating Rate | $200000 | <sup>(3)</sup> | 5.42% | 29.6 months | ![floatingfixedrate.gif](floatingfixedrate.gif) |
|  |  |  |  |  | ![floatingfixedrate.gif](floatingfixedrate.gif) |
| Fixed Rate | 1797000 |  | 3.72% | 49.3 months | ![floatingfixedrate.gif](floatingfixedrate.gif) |
|  |  |  |  |  | ![floatingfixedrate.gif](floatingfixedrate.gif) |
| **Total** | **$1997000** |  | **3.89%** | **47.4 months** | ![floatingfixedrate.gif](floatingfixedrate.gif) |
|  |  |  |  |  | ![floatingfixedrate.gif](floatingfixedrate.gif) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Unsecured & Secured Debt** | **Unsecured & Secured Debt** | **Unsecured & Secured Debt** | **Unsecured & Secured Debt** | ![securedunsecured.gif](securedunsecured.gif) |
| **Debt** <sup>(1)</sup> | **Principal Amount**<br>**Outstanding** | **Weighted Average Stated**<br>**Interest Rate** <sup>(2)</sup> | **Weighted Average**<br>**Maturity** | ![securedunsecured.gif](securedunsecured.gif) |
|  |  |  |  | ![securedunsecured.gif](securedunsecured.gif) |
| Unsecured | $1800000 | 3.87% | 45.0 months | ![securedunsecured.gif](securedunsecured.gif) |
| Secured | 197000 | 4.10% | 69.1 months | ![securedunsecured.gif](securedunsecured.gif) |
|  |  |  |  | ![securedunsecured.gif](securedunsecured.gif) |
| **Total** | **$1997000** | **3.89%** | **47.4 months** | ![securedunsecured.gif](securedunsecured.gif) |
|  |  |  |  | ![securedunsecured.gif](securedunsecured.gif) |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Debt Maturities** <sup>(4)</sup> | **Debt Maturities** <sup>(4)</sup> | **Debt Maturities** <sup>(4)</sup> | **Debt Maturities** <sup>(4)</sup> | **Debt Maturities** <sup>(4)</sup> | ![maturitiesnorates.gif](maturitiesnorates.gif) |
| **Maturity Year** | **Secured Debt - Principal**<br>**Amount Outstanding** <sup>(1)</sup> | **Unsecured Debt - Principal**<br>**Amount Outstanding** <sup>(1)</sup> | **Weighted Average**<br>**Stated Interest**<br>**Rate** <sup>(2)</sup> | **Percentage of Total** | ![maturitiesnorates.gif](maturitiesnorates.gif) |
|  |  |  |  |  | ![maturitiesnorates.gif](maturitiesnorates.gif) |
| 2023 | $— | $350000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.40% | 17.5% | ![maturitiesnorates.gif](maturitiesnorates.gif) |
| 2024 |  | 400000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.45% | 20.0% | ![maturitiesnorates.gif](maturitiesnorates.gif) |
| 2025 |  | 450000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.93% | 22.5% | ![maturitiesnorates.gif](maturitiesnorates.gif) |
| 2026 |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A | —% | ![maturitiesnorates.gif](maturitiesnorates.gif) |
| 2027 |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A | —% | ![maturitiesnorates.gif](maturitiesnorates.gif) |
| 2028 | 197000 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10% | 10.0% | ![maturitiesnorates.gif](maturitiesnorates.gif) |
| 2029 |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A | —% | ![maturitiesnorates.gif](maturitiesnorates.gif) |
| 2030 |  | 300000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.15% | 15.0% | ![maturitiesnorates.gif](maturitiesnorates.gif) |
| 2031 |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A | —% | ![maturitiesnorates.gif](maturitiesnorates.gif) |
| 2032 |  | 300000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.75% | 15.0% | ![maturitiesnorates.gif](maturitiesnorates.gif) |
|  |  |  |  |  | ![maturitiesnorates.gif](maturitiesnorates.gif) |
| **Total** | **$197000** | **$1800000** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.89%** | **100.0%** | ![maturitiesnorates.gif](maturitiesnorates.gif) |
|  |  |  |  |  | ![maturitiesnorates.gif](maturitiesnorates.gif) |
|  |  |  |  |  | ![maturitiesnorates.gif](maturitiesnorates.gif) |

---

(1) All of Piedmont's outstanding debt as of December 31, 2022, was interest-only debt or in an interest-only payment period.

(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 entire principal balance of the $200 million unsecured term loan that closed in 2022. There is an additional $600 million unsecured revolving credit facility which has a floating interest rate structure, but it had no outstanding balance as of December 31, 2022.

(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.

------

**Piedmont Office Realty Trust, Inc.**

**Debt Detail**

***Unaudited ($ in thousands)***

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Facility** <sup>(1)</sup> | **Property** | **Stated Rate** | **Stated Rate** | **Maturity** | **Principal Amount Outstanding as of December 31, 2022** |
| ***Secured*** | | | | | |
| $197.0 Million Fixed-Rate Mortgage | 1180 Peachtree Street | 4.10% | <sup>(2)</sup> | 10/1/2028 | $197000 |
| **Subtotal / Weighted Average** <sup>(3)</sup> |  | **4.10%** |  |  | $**197000** |
| ***Unsecured*** |  |  |  |  |  |
| $350.0 Million Unsecured 2013 Senior Notes | N/A | 3.40% | <sup>(4)</sup> | 6/1/2023 | $350000 |
| $400.0 Million Unsecured 2014 Senior Notes | N/A | 4.45% | <sup>(5)</sup> | 3/15/2024 | 400000 |
| $250.0 Million Unsecured 2018 Term Loan | N/A | 4.54% | <sup>(6)</sup> | 3/31/2025 | 250000 |
| $200.0 Million Unsecured 2022 Term Loan <sup>(7)</sup> | N/A | 5.42% | <sup>(8)</sup> | 6/18/2025 | 200000 |
| $600.0 Million Unsecured Line of Credit <sup>(9)</sup> | N/A | —% | <sup>(10)</sup> | 6/30/2027 |  |
| $300.0 Million Unsecured 2020 Senior Notes | N/A | 3.15% | <sup>(11)</sup> | 8/15/2030 | 300000 |
| $300.0 Million Unsecured 2021 Senior Notes | N/A | 2.75% | <sup>(12)</sup> | 4/1/2032 | 300000 |
| **Subtotal / Weighted Average** <sup>(3)</sup> |  | **3.87%** |  |  | $**1800000** |
| **Total Debt - Principal Amount Outstanding / Weighted Average Stated Rate** <sup>(3)</sup> | **Total Debt - Principal Amount Outstanding / Weighted Average Stated Rate** <sup>(3)</sup> | **3.89%** |  |  | $**1997000** |
| GAAP Accounting Adjustments <sup>(13)</sup> |  |  |  |  | (13319) |
| **Total Debt - GAAP Amount Outstanding** | **Total Debt - GAAP Amount Outstanding** |  |  |  | $**1983681** |

---

(1) All of Piedmont's outstanding debt as of December 31, 2022, was interest-only debt or in an interest-only payment period.

(2) Upon acquiring 1180 Peachtree Street during the third quarter of 2022, Piedmont assumed the mortgage. The stated interest rate of the loan was estimated to be an at-market rate as of the date of closing. The loan is interest-only through September 2023; effective October 1, 2023, the loan will begin amortizing based on a 30-year amortization schedule.

(3) Weighted average is based on the principal amounts outstanding and interest rates at December 31, 2022.

(4) 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%.

(5) 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%.

(6) The $250 million unsecured term loan has a stated variable interest rate; however, Piedmont entered into various interest rate swap agreements in a total notional amount equal to the size of the facility which effectively fix the interest rate for the term loan (at 4.54% as of December 31, 2022; this rate can change only with a credit rating change for the Company) through the loan's maturity date of March 31, 2025.

(7) On December 14, 2022, Piedmont amended the facility to extend the maturity date to December 16, 2024 with one, six-month extension option available under the facility for a final maturity of June 18, 2025. All other terms of the facility remain unchanged. The final extended maturity date is presented on this schedule.

(8) The $200 million unsecured term loan has a variable interest rate. Piedmont may select from multiple interest rate options, including the prime rate and various term SOFR rates. The all-in interest rate associated with each SOFR interest period selection is comprised of the relevant adjusted SOFR rate (comprised of the relevant base SOFR interest rate plus a fixed adjustment of 0.10%) plus a credit spread (1.00% as of December 31, 2022) based on Piedmont's then current credit rating.

(9) All of Piedmont's outstanding debt as of December 31, 2022 was term debt with the exception of our unsecured revolving credit facility (which had no balance outstanding as of December 31, 2022). The $600 million unsecured revolving credit facility has an initial maturity date of June 30, 2026; however, there are two, six-month extension options available under the facility providing for a total extension of up to one year to June 30, 2027. The final extended maturity date is presented on this schedule.

(10) There was no balance outstanding under our unsecured revolving credit facility as of the end of the fourth quarter of 2022; therefore, no interest rate is presented. Had any draws been made under the $600 million unsecured revolving credit facility as of the end of the fourth quarter of 2022, the applicable interest rate would have been approximately 5.25%. Piedmont may select from multiple interest rate options with each draw under the facility, including the prime rate and various SOFR rates. The all-in interest rate associated with each SOFR interest period selection is comprised of the relevant adjusted SOFR rate (comprised of the relevant base SOFR interest rate plus a fixed adjustment of 0.10%) plus a credit spread (0.85% as of December 31, 2022) 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 $300 million unsecured senior notes were offered for sale at 99.510% of the principal amount. The resulting effective cost of the financing is approximately 2.80% 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 2.78%.

(13) 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. The original issue discounts and fees are amortized to interest expense over the contractual term of the related debt.

------

**Piedmont Office Realty Trust, Inc.**

**Debt Covenant & Ratio Analysis** (for Debt Holders)

**As of December 31, 2022** 

***Unaudited***

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
|<br>**Bank Debt Covenant Compliance** <sup>(1)</sup> |<br>**Required** | **12/31/2022** | **9/30/2022** | **6/30/2022** | **3/31/2022** | **12/31/2021** |
| Maximum leverage ratio | 0.60 | 0.39 | 0.40 | 0.35 | 0.34 | 0.38 |
| Minimum fixed charge coverage ratio <sup>(2)</sup> | 1.50 | 4.36 | 4.82 | 5.21 | 5.30 | 5.32 |
| Maximum secured indebtedness ratio | 0.40 | 0.04 | 0.04 |  |  |  |
| Minimum unencumbered leverage ratio | 1.60 | 2.56 | 2.46 | 2.87 | 2.84 | 2.49 |
| Minimum unencumbered interest coverage ratio <sup>(3)</sup> | 1.75 | 4.55 | 4.93 | 5.26 | 5.28 | 5.36 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
|<br>**Bond Covenant Compliance** <sup>(4)</sup> |<br>**Required** | **12/31/2022** | **9/30/2022** | **6/30/2022** | **3/31/2022** | **12/31/2021** |
| Total debt to total assets | 60% or less | 44.0% | 46.8% | 40.9% | 40.9% | 43.5% |
| Secured debt to total assets | 40% or less | 4.3% | 4.3% | —% | —% | —% |
| Ratio of consolidated EBITDA to interest expense | 1.50 or greater | 4.95 | 5.49 | 5.92 | 6.04 | 6.13 |
| Unencumbered assets to unsecured debt | 150% or greater | 227% | 212% | 245% | 244% | 230% |

---

---

| | | | |
|:---|:---|:---|:---|
|<br>**Other Debt Coverage Ratios for Debt Holders** | **Three Months Ended**<br>**December 31, 2022** | **Twelve Months Ended**<br>**December 31, 2022** | **Twelve Months Ended**<br>**December 31, 2021** |
| Average net principal amount of debt to core EBITDA <sup>(5)</sup> | 6.4 x | 6.0 x | 5.7 x |
| Fixed charge coverage ratio <sup>(6)</sup> | 3.8 x | 4.5 x | 5.4 x |
| Interest coverage ratio <sup>(7)</sup> | 3.8 x | 4.5 x | 5.4 x |

---

(1) Bank debt covenant compliance calculations relate to the most restrictive of the specific calculations detailed in the relevant credit agreements. Please refer to such agreements for relevant defined terms.

(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, the Second Supplemental Indenture dated August 12, 2020, and the Third Supplemental Indenture dated September 20, 2021 for defined terms and detailed information about the calculations.

(5) For the purposes of this calculation, we use the average daily principal balance of debt outstanding during the identified period, less the average of cash and cash equivalents and escrow deposits and restricted cash as of the end of each quarter in the relevant 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 (none during periods presented). The Company had capitalized interest of $1,002,603 for the three months ended December 31, 2022, $4,177,797 for the twelve months ended December 31, 2022, and $3,693,032 for the twelve months ended December 31, 2021. The Company had no principal amortization for the twelve months ended December 31, 2022; the Company had principal amortization of $372,455 for the twelve months ended December 31, 2021.

(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 $1,002,603 for the three months ended December 31, 2022, $4,177,797 for the twelve months ended December 31, 2022 and $3,693,032 for the twelve months ended December 31, 2021.

------

**Piedmont Office Realty Trust, Inc.**

**Tenant Diversification** <sup>(1)</sup>

**As of December 31, 2022** 

***(in thousands except for number of properties)***

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Tenant** | **Credit Rating** <sup>(2)</sup> | **Number of<br>Properties** | **Lease Term Remaining** <sup>(3)</sup> | **Annualized Lease<br>Revenue** | **Percentage of<br>Annualized Lease<br>Revenue (%)** | **Leased<br>Square Footage** | **Percentage of<br>Leased<br>Square Footage (%)** |
| US Bancorp | A+ / A2 | 3 | 1.4 | $27485 | 5.0 | 787 | 5.4 |
| State of New York | AA+ / Aa1 | 1 | 13.7 | 25254 | 4.6 | 482 | 3.3 |
| Amazon | AA / A1 | 3 | 2.0 | 16018 | 2.9 | 337 | 2.3 |
| City of New York | AA / Aa2 | 1 | 3.4 | 15200 | 2.7 | 313 | 2.2 |
| Microsoft | AAA / Aaa | 2 | 8.5 | 13250 | 2.4 | 355 | 2.5 |
| King & Spalding | No Rating Available | 1 | 8.2 | 12455 | 2.2 | 272 | 1.9 |
| Transocean | CCC / Caa1 | 1 | 13.3 | 11124 | 2.0 | 301 | 2.1 |
| VMware, Inc. | BBB- / Baa3 | 1 | 4.6 | 8308 | 1.5 | 215 | 1.5 |
| Schlumberger Technology | A / A2 | 1 | 6.0 | 7927 | 1.4 | 254 | 1.8 |
| Gartner | BB+ / Ba1 | 2 | 11.5 | 7592 | 1.4 | 207 | 1.4 |
| Fiserv | BBB / Baa2 | 1 | 4.6 | 7211 | 1.3 | 195 | 1.4 |
| Salesforce.com | A+ / A2 | 1 | 6.6 | 7205 | 1.3 | 182 | 1.3 |
| Epsilon Data Management / subsidiary of Publicis | BBB / Baa2 | 1 | 3.5 | 6667 | 1.2 | 222 | 1.5 |
| Eversheds Sutherland | No Rating Available | 1 | 3.3 | 6624 | 1.2 | 180 | 1.2 |
| Applied Predictive Technologies / subsidiary of MasterCard | A+ / Aa3 | 1 | 5.4 | 6524 | 1.2 | 133 | 0.9 |
| International Food Policy Research Institute | No Rating Available | 1 | 6.3 | 6305 | 1.1 | 102 | 0.7 |
| Ryan | No Rating Available | 1 | 3.1 | 6274 | 1.1 | 170 | 1.2 |
| Cargill | A / A2 | 1 | 1.0 | 5497 | 1.0 | 268 | 1.9 |
| Other |  |  | Various | 358372 | 64.5 | 9465 | 65.5 |
| **Total** |  |  |  | **$555292** | **100.0** | **14440** | **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) The metrics presented are the weighted average lease terms remaining in years weighted by Annualized Lease Revenue.

------

**Piedmont Office Realty Trust, Inc.**

**Tenant Diversification**

**As of December 31, 2022**

**Percentage of Annualized Leased Revenue (%)**

**December 31, 2022 as compared to December 31, 2021** 

![chart-741d4f4eabeb4bfe89c.jpg](chart-741d4f4eabeb4bfe89c.jpg)

------

**Piedmont Office Realty Trust, Inc.**

**Tenant Credit Rating & Lease Distribution Information**

**As of December 31, 2022** 

**Tenant Credit Rating** <sup>(1)</sup>

---

| | | |
|:---|:---|:---|
| **Rating Level** | **Annualized<br>Lease Revenue<br>(in thousands)** | **Percentage of<br>Annualized Lease<br>Revenue (%)** |
| AAA / Aaa | $21973 | 4.0 |
| AA / Aa | 68461 | 12.3 |
| A / A | 77385 | 13.9 |
| BBB / Baa | 56195 | 10.1 |
| BB / Ba | 20414 | 3.7 |
| B / B | 7524 | 1.4 |
| Below | 17761 | 3.2 |
| Not rated <sup>(2)</sup> | 285579 | 51.4 |
| **Total** | **$555292** | **100.0** |

---

**Lease Distribution**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Lease Size** | **Number of Leases** | **Percentage of<br>Leases (%)** | **Annualized<br>Lease Revenue<br>(in thousands)** | **Percentage of<br>Annualized Lease<br>Revenue (%)** | **Leased<br>Square Footage<br>(in thousands)** | **Percentage of<br>Leased<br>Square Footage (%)** |
| 2,500 or Less | 368 | 37.2 | $24957 | 4.5 | 261 | 1.8 |
| 2501 - 10000 | 347 | 35.1 | 67285 | 12.1 | 1780 | 12.3 |
| 10001 - 20000 | 109 | 11.0 | 55614 | 10.0 | 1488 | 10.3 |
| 20001 - 40000 | 90 | 9.1 | 93250 | 16.8 | 2463 | 17.1 |
| 40001 - 100000 | 45 | 4.6 | 107782 | 19.4 | 2775 | 19.2 |
| Greater than 100,000 | 30 | 3.0 | 206404 | 37.2 | 5673 | 39.3 |
| **Total** | **989** | **100.0** | **$555292** | **100.0** | **14440** | **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.

------

**Piedmont Office Realty Trust, Inc.**

**Leased Percentage Information**

***(in thousands)*** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| | **Leased**<br>**Square Footage** | **Rentable**<br>**Square Footage** | **Percent**<br>**Leased** <sup>(1)</sup> | **Leased**<br>**Square Footage** | **Rentable**<br>**Square Footage** | **Percent**<br>**Leased** <sup>(1)</sup> |
| **As of September 30, 20xx** | **14606** | **16832** | **86.8%** | **14106** | **16428** | **85.9%** |
| &nbsp;&nbsp;&nbsp;Leases signed during the period | 433 |  |  | 399 |  |  |
| <u>Less</u>: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Lease renewals signed during period | (284) |  |  | (198) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; New leases signed during period for currently occupied space |  |  |  | (36) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Leases expired during period and other | (144) | 1 |  | (164) | 1 |  |
| **Subtotal** | **14611** | **16833** | **86.8%** | **14107** | **16429** | **85.9%** |
| Acquisitions and properties placed in service during period <sup>(2)</sup> |  |  |  | 476 | 622 |  |
| Dispositions and properties taken out of service during period <sup>(2)</sup> | (171) | (175) |  |  |  |  |
| **As of December 31, 20xx** | **14440** | **16658** | **86.7%** | **14583** | **17051** | **85.5%** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Twelve Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
| | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| | **Leased**<br>**Square Footage** | **Rentable**<br>**Square Footage** | **Percent**<br>**Leased** <sup>(1)</sup> | **Leased**<br>**Square Footage** | **Rentable**<br>**Square Footage** | **Percent**<br>**Leased** <sup>(1)</sup> |
| **As of December 31, 20xx** | **14583** | **17051** | **85.5%** | **14260** | **16428** | **86.8%** |
| &nbsp;&nbsp;&nbsp;Leases signed during the period | 2153 |  |  | 2250 |  |  |
| &nbsp;&nbsp;&nbsp;<u>Less</u>: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Lease renewals signed during period | (1404) |  |  | (1521) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; New leases signed during period for currently occupied space | (66) |  |  | (144) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Leases expired during period and other | (713) | 16 |  | (738) | 1 |  |
| **Subtotal** | **14553** | **17067** | **85.3%** | **14107** | **16429** | **85.9%** |
| Acquisitions and properties placed in service during period <sup>(2)</sup> | 663 | 691 |  | 476 | 622 |  |
| Dispositions and properties taken out of service during period <sup>(2)</sup> | (776) | (1100) |  |  |  |  |
| **As of December 31, 20xx** | **14440** | **16658** | **86.7%** | **14583** | **17051** | **85.5%** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Same Store Analysis** | | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Less acquisitions / dispositions after December 31, 2021<br>and developments / out-of-service redevelopments <sup>(2) (3)</sup> | (669) | (691) | 96.8% | (776) | (1099) | 70.6% |
| &nbsp;&nbsp;**Same Store Leased Percentage** | **13771** | **15967** | **86.2%** | **13807** | **15952** | **86.6%** |

---

(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 <u>[32](#iadd70805bcca4717ab5b271bc66524e4_79)</u> and <u>[33](#iadd70805bcca4717ab5b271bc66524e4_82)</u>, 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 previously out of service redevelopments that were placed in service during the previous twelve months are deducted from the current period data.

------

**Piedmont Office Realty Trust, Inc.**

**Rental Rate Roll Up / Roll Down Analysis** <sup>(1)</sup>

***(in thousands)***

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | |
| | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | |
| | **Square Feet** | **% of Total Signed<br>During Period** | **% of Rentable<br>Square Footage** | **% Change**<br>**Cash Rents** <sup>(2)</sup>  | **% Change**<br>**Accrual Rents** <sup>(3)</sup> | |
| Leases executed for spaces vacant one year or less | 236 | 54.5% | 1.4% | 6.5% | 11.5% | (4) |
| Leases executed for spaces excluded from analysis <sup>(5)</sup> | 197 | 45.5% |  |  |  |  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Twelve Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
| | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| | **Square Feet** | **% of Total Signed<br>During Period** | **% of Rentable<br>Square Footage** | **% Change**<br>**Cash Rents** <sup>(2)</sup>  | **% Change**<br>**Accrual Rents** <sup>(3)</sup> |
| Leases executed for spaces vacant one year or less | 1258 | 58.4% | 7.6% | 9.7% | 17.2% |
| Leases executed for spaces excluded from analysis <sup>(5)</sup> | 895 | 41.6% |  |  |  |

---

(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, retail 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) The results for the three months ended December 31, 2022 were influenced by a large lease transaction, an approximately 58,000 square foot lease extension and expansion with Institute for Justice at Arlington Gateway in Arlington, VA. Ignoring this transaction, the percentage changes in cash and accrual rents for the remainder of the analysis population for the three months ended December 31, 2022 were 10.7% and 15.2%, respectively.

(5) 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.

------

**Piedmont Office Realty Trust, Inc.**

**Lease Expiration Schedule**

**As of December 31, 2022** 

***(in thousands)***

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Expiration Year** | **Annualized Lease**<br>**Revenue** <sup>(1)</sup> | **Percentage of**<br>**Annualized Lease**<br>**Revenue (%)** | **Rentable**<br>**Square Footage** | **Percentage of**<br>**Rentable**<br>**Square Footage (%)** |
| Vacant | $— |  | 2218 | 13.3 |
| 2023 <sup>(2)</sup> | 40507 | 7.3 | 1283 | 7.7 |
| 2024 <sup>(3)</sup> | 70434 | 12.7 | 2017 | 12.1 |
| 2025 | 66082 | 11.9 | 1704 | 10.2 |
| 2026 | 59821 | 10.8 | 1560 | 9.4 |
| 2027 | 54486 | 9.8 | 1454 | 8.7 |
| 2028 | 66743 | 12.0 | 1786 | 10.7 |
| 2029 | 39186 | 7.1 | 974 | 5.9 |
| 2030 | 24224 | 4.4 | 674 | 4.1 |
| 2031 | 23070 | 4.1 | 587 | 3.5 |
| 2032 | 22391 | 4.0 | 567 | 3.4 |
| 2033 | 10347 | 1.9 | 231 | 1.4 |
| 2034 | 15581 | 2.8 | 423 | 2.5 |
| Thereafter | 62420 | 11.2 | 1180 | 7.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total / Weighted Average** | **$555292** | **100.0** | **16658** | **100.0** |

---

---

| | |
|:---|:---|
| Average Lease Term Remaining | Average Lease Term Remaining |
| &nbsp;&nbsp;&nbsp;12/31/2022 | 5.6 years |
| &nbsp;&nbsp;&nbsp;12/31/2021 | 6.0 years |

---

![chart-25b993ba4a924f74a69.jpg](chart-25b993ba4a924f74a69.jpg)

(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 December 31, 2022, comprised of approximately 88,000 square feet and Annualized Lease Revenue of $3.6 million.

(3) Leases and other revenue-producing agreements on a month-to-month basis, comprised of approximately 25,000 square feet and Annualized Lease Revenue of $1.0 million, are assigned a lease expiration date of a year and a day beyond the period end date.

------

**Piedmont Office Realty Trust, Inc.**

**Lease Expirations by Quarter**

**As of December 31, 2022** 

***(in thousands)***

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Q1 2023** <sup>(1)</sup> | **Q1 2023** <sup>(1)</sup> | **Q2 2023** | **Q2 2023** | **Q3 2023** | **Q3 2023** | **Q4 2023** | **Q4 2023** |
| **Location** | **Expiring**<br>**Square**<br>**Footage** | **Expiring Lease**<br>**Revenue** <sup>(2)</sup> | **Expiring**<br>**Square**<br>**Footage** | **Expiring Lease**<br>**Revenue** <sup>(2)</sup> | **Expiring**<br>**Square**<br>**Footage** | **Expiring Lease**<br>**Revenue** <sup>(2)</sup> | **Expiring**<br>**Square**<br>**Footage** | **Expiring Lease**<br>**Revenue** <sup>(2)</sup> |
| Atlanta | 65 | $2132 | 41 | $1526 | 37 | $1263 | 108 | $4133 |
| Boston | 100 | 4145 | 15 | 679 | 6 | 142 |  |  |
| Dallas | 168 | 5622 | 67 | 2320 | 22 | 677 | 102 | 4092 |
| Minneapolis | 33 | 955 | 10 | 444 | 12 | 507 | 289 | 6373 |
| New York | 2 | 96 |  |  | 34 | 1875 |  |  |
| Orlando | 33 | 1087 |  |  | 3 | 82 | 71 | 1856 |
| Washington, D.C. | 49 | 2641 | 11 | 690 | 1 | 53 |  | 20 |
| Other |  |  |  |  |  |  | 4 | 68 |
| **Total / Weighted Average** <sup>(3)</sup> | **450** | **$16678** | **144** | **$5659** | **115** | **$4599** | **574** | **$16542** |

---

(1) Includes leases with an expiration date of December 31, 2022, comprised of approximately 88,000 square feet and expiring lease revenue of $3.7 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.

------

**Piedmont Office Realty Trust, Inc.**

**Lease Expirations by Year**

**As of December 31, 2022** 

***(in thousands)***

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **12/31/2023** <sup>(1)</sup> | **12/31/2023** <sup>(1)</sup> | **12/31/2024** | **12/31/2024** | **12/31/2025** | **12/31/2025** | **12/31/2026** | **12/31/2026** | **12/31/2027** | **12/31/2027** |
| **Location** | **Expiring**<br>**Square**<br>**Footage** | **Expiring**<br>**Lease**<br>**Revenue** <sup>(2)</sup> | **Expiring**<br>**Square**<br>**Footage** | **Expiring**<br>**Lease**<br>**Revenue** <sup>(2)</sup> | **Expiring**<br>**Square**<br>**Footage** | **Expiring**<br>**Lease**<br>**Revenue** <sup>(2)</sup> | **Expiring**<br>**Square**<br>**Footage** | **Expiring**<br>**Lease**<br>**Revenue** <sup>(2)</sup> | **Expiring**<br>**Square**<br>**Footage** | **Expiring**<br>**Lease**<br>**Revenue** <sup>(2)</sup> |
| Atlanta | 250 | $9053 | 323 | $11550 | 421 | $14087 | 464 | $17152 | 607 | $22291 |
| Boston | 121 | 4966 | 19 | 767 | 145 | 5098 | 14 | 433 | 23 | 637 |
| Dallas | 360 | 12712 | 243 | 9413 | 609 | 25273 | 342 | 10900 | 204 | 6768 |
| Minneapolis | 345 | 8280 | 904 | 31816 | 250 | 9772 | 40 | 1465 | 218 | 7416 |
| New York | 36 | 1971 | 2 | 156 | 9 | 496 | 313 | 15212 | 15 | 709 |
| Orlando | 106 | 3024 | 348 | 7690 | 238 | 7684 | 284 | 9444 | 212 | 7410 |
| Washington, D.C. | 61 | 3404 | 178 | 9051 | 32 | 2370 | 103 | 5187 | 175 | 9237 |
| Other | 4 | 68 |  | 5 |  |  |  |  |  | 6 |
| **Total / Weighted Average** <sup>(3)</sup> | **1283** | **$43478** | **2017** | **$70448** | **1704** | **$64780** | **1560** | **$59793** | **1454** | **$54474** |

---

(1) Includes leases with an expiration date of December 31, 2022, comprised of approximately 88,000 square feet and expiring lease revenue of $3.7 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 page <u>[25](#iadd70805bcca4717ab5b271bc66524e4_58)</u> 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.

------

**Piedmont Office Realty Trust, Inc.**

**Contractual Tenant Improvements and Leasing Commissions**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** | **Twelve Months Ended December 31, 2022** | **Twelve Months Ended December 31, 2022** | **For the Year Ended** | **For the Year Ended** | **For the Year Ended** | **2019 to 2022**<br>*(Weighted Average Total)* |
|  | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** | **Twelve Months Ended December 31, 2022** | **Twelve Months Ended December 31, 2022** | **2021** | **2020** | **2019** | **2019 to 2022**<br>*(Weighted Average Total)* |
| **Total Leasing Transactions** |  |  |  |  |  |  |  |  |
| Square feet | 431979 |  | 2142852 |  | 2247366 | 1103248 | 2730332 | 8223798 |
| Tenant improvements per square foot per year of lease term <sup>(1)</sup> | $4.05 |  | $3.22 |  | $2.78 | $4.30 | $4.21 | $3.61 |
| Leasing commissions per square foot per year of lease term | $2.75 |  | $2.22 |  | $1.67 | $1.89 | $1.70 | $1.82 |
| Total per square foot per year of lease term | $6.80 | <sup>(2)</sup> | $5.44 | <sup>(2)</sup> | $4.45 | $6.19 | $5.91 | $5.43 |
| **Less Adjustment for Commitment Expirations** <sup>(3)</sup> |  |  |  |  |  |  |  |  |
| Expired tenant improvements (not paid out) <br>per square foot per year of lease term | -$0.27 |  | -$0.10 |  | -$0.20 | -$0.40 | -$0.05 | -$0.14 |
| Adjusted total per square foot per year of lease term | $6.53 |  | $5.34 |  | $4.25 | $5.79 | $5.86 | $5.29 |

---

---

| | |
|:---|:---|
| 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 the fourth quarter of 2022, we completed one significant lease (amounting to approximately 58,000 square feet in total) in the Washington, DC market with a large capital commitment. If the costs associated with this lease 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 total leases completed during the three months and the twelve months ended December 31, 2022 would be $6.06 and $5.21, respectively. |
| (3) | 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. |

---

------

**Piedmont Office Realty Trust, Inc.**

**Geographic Diversification**

**As of December 31, 2022** 

***($ and square footage in thousands)***

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Location** | **Number of<br>Properties** | **Annualized<br>Lease Revenue** | **Percentage of<br>Annualized Lease<br>Revenue (%)** | **Rentable<br>Square Footage** | **Percentage of<br>Rentable Square<br>Footage (%)** | **Leased Square Footage** | **Percent Leased (%)** |
| Atlanta | 11 | $150082 | 27.0 | 4717 | 28.3 | 4026 | 85.4 |
| Dallas | 13 | 105775 | 19.1 | 3524 | 21.2 | 2891 | 82.0 |
| Washington, D.C. | 6 | 67353 | 12.1 | 1620 | 9.7 | 1286 | 79.4 |
| Minneapolis | 6 | 66378 | 12.0 | 2104 | 12.6 | 1938 | 92.1 |
| Orlando | 6 | 57756 | 10.4 | 1764 | 10.6 | 1681 | 95.3 |
| New York | 1 | 47132 | 8.5 | 1045 | 6.3 | 903 | 86.4 |
| Boston | 6 | 41684 | 7.5 | 1270 | 7.6 | 1155 | 90.9 |
| Other | 2 | 19132 | 3.4 | 614 | 3.7 | 560 | 91.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total / Weighted Average** | **51** | **$555292** | **100.0** | **16658** | **100.0** | **14440** | **86.7** |

---

![chart-8f7edbe9c7bf4577ad2.jpg](chart-8f7edbe9c7bf4577ad2.jpg)

------

**Piedmont Office Realty Trust, Inc.**

**Geographic Diversification by Location Type**

**As of December 31, 2022** 

***(square footage in thousands)***

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **CBD** | **CBD** | **CBD** | **CBD** | **URBAN INFILL / SUBURBAN** | **URBAN INFILL / SUBURBAN** | **URBAN INFILL / SUBURBAN** | **URBAN INFILL / SUBURBAN** | **TOTAL** | **TOTAL** | **TOTAL** | **TOTAL** |
|<br>**Location** |<br>**State** | **Number of<br>Properties** | **Percentage<br>of<br>Annualized<br>Lease<br>Revenue<br>(%)** | **Rentable<br>Square<br>Footage** | **Percentage<br>of Rentable<br>Square<br>Footage<br>(%)** | **Number of<br>Properties** | **Percentage<br>of<br>Annualized<br>Lease<br>Revenue<br>(%)** | **Rentable<br>Square<br>Footage** | **Percentage<br>of Rentable<br>Square<br>Footage<br>(%)** | **Number of<br>Properties** | **Percentage<br>of<br>Annualized<br>Lease<br>Revenue<br>(%)** | **Rentable<br>Square<br>Footage** | **Percentage<br>of Rentable<br>Square<br>Footage<br>(%)** |
| Atlanta | GA | 2 | 9.7 | 1314 | 7.9 | 9 | 17.3 | 3403 | 20.4 | 11 | 27.0 | 4717 | 28.3 |
| Dallas | TX |  |  |  |  | 13 | 19.1 | 3524 | 21.2 | 13 | 19.1 | 3524 | 21.2 |
| Washington, D.C. | DC, VA | 3 | 5.3 | 722 | 4.3 | 3 | 6.8 | 898 | 5.4 | 6 | 12.1 | 1620 | 9.7 |
| Minneapolis | MN | 1 | 6.1 | 937 | 5.6 | 5 | 5.9 | 1167 | 7.0 | 6 | 12.0 | 2104 | 12.6 |
| Orlando | FL | 4 | 8.6 | 1455 | 8.8 | 2 | 1.8 | 309 | 1.8 | 6 | 10.4 | 1764 | 10.6 |
| New York | NY | 1 | 8.5 | 1045 | 6.3 |  |  |  |  | 1 | 8.5 | 1045 | 6.3 |
| Boston | MA |  |  |  |  | 6 | 7.5 | 1270 | 7.6 | 6 | 7.5 | 1270 | 7.6 |
| Other |  |  |  |  |  | 2 | 3.4 | 614 | 3.7 | 2 | 3.4 | 614 | 3.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total / Weighted Average** | &nbsp;&nbsp;&nbsp;&nbsp;**Total / Weighted Average** | **11** | **38.2** | **5473** | **32.9** | **40** | **61.8** | **11185** | **67.1** | **51** | **100.0** | **16658** | **100.0** |

---

------

**Piedmont Office Realty Trust, Inc.**

**Industry Diversification**

**As of December 31, 2022** 

***($ and square footage in thousands)***

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|<br>**Industry** |<br>**Number of**<br>**Tenants** |<br>**Percentage of Total**<br>**Tenants (%)** |<br>**Annualized Lease**<br>**Revenue** | **Percentage of**<br>**Annualized Lease**<br>**Revenue (%)** |<br>**Leased Square**<br>**Footage** |<br>**Percentage of Leased**<br>**Square Footage (%)** |
| Business Services | 87 | 11.9 | $85722 | 15.4 | 2271 | 15.7 |
| Engineering, Accounting, Research, Management & Related Services | 103 | 14.0 | 75259 | 13.6 | 1908 | 13.2 |
| Legal Services | 82 | 11.2 | 56307 | 10.1 | 1412 | 9.8 |
| Governmental Entity | 6 | 0.8 | 47357 | 8.5 | 939 | 6.5 |
| Depository Institutions | 20 | 2.7 | 37759 | 6.8 | 1037 | 7.2 |
| Real Estate | 50 | 6.8 | 27855 | 5.0 | 835 | 5.8 |
| Miscellaneous Retail | 9 | 1.2 | 22994 | 4.1 | 562 | 3.9 |
| Holding and Other Investment Offices | 35 | 4.8 | 20007 | 3.6 | 502 | 3.5 |
| Oil and Gas Extraction | 4 | 0.5 | 19327 | 3.5 | 561 | 3.9 |
| Security & Commodity Brokers, Dealers, Exchanges & Services | 49 | 6.7 | 17741 | 3.2 | 467 | 3.2 |
| Health Services | 30 | 4.1 | 16489 | 3.0 | 424 | 2.9 |
| Automotive Repair, Services & Parking | 7 | 1.0 | 12819 | 2.3 | 4 |  |
| Insurance Agents, Brokers & Services | 19 | 2.6 | 11769 | 2.1 | 353 | 2.4 |
| Membership Organizations | 16 | 2.2 | 9932 | 1.8 | 197 | 1.4 |
| Eating & Drinking Places | 31 | 4.2 | 8393 | 1.5 | 221 | 1.5 |
| Other | 186 | 25.3 | 85562 | 15.5 | 2747 | 19.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | **734** | **100.0** | **$555292** | **100.0** | **14440** | **100.0** |

---

![chart-438901b91b6e4618993.jpg](chart-438901b91b6e4618993.jpg)

------

**Piedmont Office Realty Trust, Inc.**

**Property Investment Activity**

**As of December 31, 2022**

***($ and square footage in thousands)***

**Acquisitions Completed During Prior Year and Current Year**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Property** | **Market / Submarket** | **Acquisition Period** | **Percent<br>Ownership (%)** | **Year Built** | **Purchase Price** | **Rentable Square<br>Footage** | **Percent Leased at<br>Acquisition (%)** |
| 999 Peachtree Street | Atlanta / Midtown | Q4 2021 | 100 | 1987 | $223900 | 622 | 77 |
| Galleria Atlanta Land | Atlanta / Northwest | Q4 2021 | 100 | N/A | 4000 | N/A | N/A |
| 1180 Peachtree Street | Atlanta / Midtown | Q3 2022 | 100 | 2005 | 465665 | 691 | 96 |
| Total / Weighted Average |  |  |  |  | $693565 | 1313 | 87 |

---

**Dispositions Completed During Prior Year and Current Year**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Property** | **Market / Submarket** | **Disposition Period** | **Percent<br>Ownership (%)** | **Year Built** | **Sale Price** | **Rentable Square<br>Footage** | **Percent Leased at<br>Disposition (%)** |
| Two Pierce Place | Chicago / Northwest | Q1 2022 | 100 | 1991 | $24000 | 485 | 34 |
| 225 and 235 Presidential Way | Boston / Route 128 | Q1 2022 | 100 | 2001 and 2000 | 129000 | 440 | 100 |
| Cambridge Portfolio | Boston / Cambridge | Q4 2022 | 100 | Various | 160225 | 175 | 94 |
| Total / Weighted Average |  |  |  |  | $313225 | 1100 | 70 |

---

------

**Piedmont Office Realty Trust, Inc.**

**Other Investments**

**As of December 31, 2022** 

***($ and square footage in thousands)***

**Developable Land Parcels**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Property** | **Market / Submarket** | **Adjacent Piedmont Project** | **Acres** | **Real Estate Book Value** |
| Gavitello | Atlanta / Buckhead | The Medici | 2.0 | $2605 |
| Glenridge Highlands Three | Atlanta / Central Perimeter | Glenridge Highlands | 3.0 | 2015 |
| Galleria Atlanta | Atlanta / Northwest | Galleria | 16.3 | 24240 |
| State Highway 161 | Dallas / Las Colinas | Las Colinas Corporate Center | 4.5 | 3320 |
| Royal Lane | Dallas / Las Colinas | 6011, 6021 & 6031 Connection Drive | 10.6 | 2837 |
| John Carpenter Freeway | Dallas / Las Colinas | 750 West John Carpenter Freeway | 3.5 | 1000 |
| Galleria Dallas | Dallas / Lower North Tollway | Galleria Office Towers | 1.9 | 5770 |
| TownPark | Orlando / Lake Mary | 400 & 500 TownPark Commons | 18.9 | 9116 |
| **Total** |  |  | **60.7** | **$50903** |

---

**Out-of-Service Redevelopment**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Property** | **Market / Submarket** | **Adjacent Piedmont Property** | **Construction Type** | **Percent Leased (%)** | **Square Feet** | **Current Asset Basis (Accrual)** |
| 222 South Orange Avenue <sup>(1)</sup> | Orlando / CBD | 200 South Orange Avenue | Redevelopment | 14.6 | 127 | $24.6 million |

---

(1) The property was acquired on October 29, 2020 and was vacant at the time of acquisition. It shares a common lobby and atrium with the Company's 200 South Orange Avenue property. The redevelopment includes an enhanced window line and balconies, allowing more light and air into tenant spaces, along with renovations to the lobby, common areas and restrooms.

------

**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 <u>[36](#iadd70805bcca4717ab5b271bc66524e4_91)</u>.  |
| **Adjusted Funds From Operations ("AFFO")**: The Company calculates AFFO by starting with Core FFO and adjusting for non-incremental capital expenditures 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 joint ventures, if any. 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 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 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 infrequent or non-recurring 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 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 (calculated in accordance with GAAP), excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control, and impairment write-downs of certain real estate assets and investment in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity, along with appropriate adjustments to those reconciling items for joint ventures, if any. 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 non-cash general reserve for uncollectible accounts, 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. 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. |

---

------

**Piedmont Office Realty Trust, Inc.**

**Research Coverage**

**<u>Equity Research Coverage</u>**

---

| | | | |
|:---|:---|:---|:---|
| **Dylan Burzinski** | **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 44114 | Phone: (212) 319-5659 |
|  | Phone: (212) 622-6682 | Phone: (216) 737-7341 |  |

---

**<u>Fixed Income Research Coverage</u>**

---

| |
|:---|
| **Mark S. Streeter, CFA** |
| **JP Morgan** |
| 383 Madison Avenue |
| 3rd Floor |
| New York, NY 10179 |
| Phone: (212) 834-5086 |

---

------

**Piedmont Office Realty Trust, Inc.**

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

***Unaudited (in thousands)***

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
| | **12/31/2022** | **9/30/2022** | **6/30/2022** | **3/31/2022** | **12/31/2021** | **12/31/2022** | **12/31/2021** |
| **GAAP net income / (loss) applicable to common stock** | $**75569** | $**3331** | $**7966** | $**59964** | $**(31750)** | $**146830** | $**(1153)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 34587 | 34743 | 32187 | 31332 | 31756 | 132849 | 119629 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization | 23905 | 23278 | 21468 | 22240 | 22003 | 90891 | 85946 |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment loss | 25981 |  |  |  | 41000 | 25981 | 41000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss / (gain) on sale of properties | (101055) |  | (1) | (50673) |  | (151729) |  |
| **NAREIT funds from operations applicable to common stock** | **58987** | **61352** | **61620** | **62863** | **63009** | **244822** | **245422** |
| &nbsp;&nbsp;&nbsp;Adjustments: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Severance costs associated with fourth quarter 2022 management reorganization | 2248 |  |  |  |  | 2248 |  |
| **Core funds from operations applicable to common stock** | **61235** | **61352** | **61620** | **62863** | **63009** | **247070** | **245422** |
| &nbsp;&nbsp;&nbsp;Adjustments: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt issuance costs, fair market adjustments on notes payable, and discount on senior notes | 926 | 922 | 763 | 778 | 781 | 3389 | 2857 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation of non real estate assets | 191 | 189 | 175 | 173 | 187 | 728 | 949 |
| &nbsp;&nbsp;&nbsp;&nbsp;Straight-line effects of lease revenue | (2356) | (3268) | (3029) | (2577) | (1939) | (11230) | (10566) |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation adjustments | 1717 | 1950 | 1718 | (552) | 2772 | 4833 | 7924 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of lease-related intangibles | (3713) | (3542) | (3009) | (3162) | (3098) | (13426) | (11290) |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-incremental capital expenditures |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Building/Construction/Development | (3967) | (6897) | (4748) | (3506) | (7660) | (19118) | (33410) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tenant Improvements | (2934) | (3146) | (3402) | (11506) | (10223) | (20989) | (28892) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Leasing Costs | (4017) | (4078) | (1188) | (3935) | (4430) | (13217) | (12860) |
| **Adjusted funds from operations applicable to common stock** | $**47082** | $**43482** | $**48900** | $**38576** | $**39399** | $**178040** | $**160134** |

---

------

**Piedmont Office Realty Trust, Inc.**

**Same Store Net Operating Income (Cash Basis)**

***Unaudited (in thousands)***

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
| | **12/31/2022** | **9/30/2022** | **6/30/2022** | **3/31/2022** | **12/31/2021** | **12/31/2022** | **12/31/2021** |
| **Net income / (loss) applicable to Piedmont** | $**75569** | $**3331** | $**7966** | $**59964** | $**(31750)** | $**146830** | $**(1153)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income / (loss) applicable to noncontrolling interest | 1 |  | (1) |  | (5) |  | (14) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 20739 | 17244 | 13775 | 13898 | 13917 | 65656 | 51292 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 34778 | 34931 | 32362 | 31505 | 31943 | 133577 | 120578 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization | 23905 | 23278 | 21468 | 22240 | 22003 | 90891 | 85946 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization attributable to noncontrolling interests | 20 | 21 | 22 | 22 | 22 | 85 | 84 |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment loss | 25981 |  |  |  | 41000 | 25981 | 41000 |
| &nbsp;&nbsp;&nbsp;&nbsp;(Gain) / loss on sale of properties | (101055) |  | (1) | (50673) |  | (151729) |  |
| **EBITDAre** | **79938** | **78805** | **75591** | **76956** | **77130** | **311291** | **297733** |
| &nbsp;&nbsp;&nbsp;&nbsp;Severance costs associated with fourth quarter 2022 management reorganization | 2248 |  |  |  |  | 2248 |  |
| **Core EBITDA** | **82186** | **78805** | **75591** | **76956** | **77130** | **313539** | **297733** |
| &nbsp;&nbsp;&nbsp;&nbsp;General & administrative expenses | 5668 | 6590 | 7027 | 7595 | 7835 | 26879 | 30252 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash general reserve for uncollectible accounts | (1000) | (1000) | (1000) |  | (965) | (3000) | (553) |
| &nbsp;&nbsp;&nbsp;&nbsp;Management fee revenue | (261) | (177) | (203) | (362) | (323) | (1004) | (1269) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other (income) / expense | (193) | (119) | 273 | (1808) | (2667) | (1847) | (9089) |
| &nbsp;&nbsp;&nbsp;&nbsp;Straight-line effects of lease revenue | (2356) | (3268) | (3029) | (2577) | (1939) | (11230) | (10566) |
| &nbsp;&nbsp;&nbsp;&nbsp;Straight-line effects of lease revenue attributable to noncontrolling interests | (4) | (4) | (1) | (1) | 1 | (10) | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of lease-related intangibles | (3713) | (3542) | (3009) | (3162) | (3098) | (13426) | (11290) |
| **Property net operating income (cash basis)** | **80327** | **77285** | **75649** | **76641** | **75974** | **309901** | **295221** |
| &nbsp;&nbsp;&nbsp;&nbsp;Deduct net operating (income) / loss from: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisitions | (7928) | (5423) | (2673) | (2697) | (2460) | (18720) | (2460) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dispositions | (2342) | (2587) | (2704) | (3080) | (4555) | (10714) | (17572) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other investments | 224 | 211 | 138 | 189 | 217 | 763 | 841 |
| **Same store net operating income (cash basis)** | $**70281** | $**69486** | $**70410** | $**71053** | $**69176** | $**281230** | $**276030** |

---

------

**Piedmont Office Realty Trust, Inc.**

**In-Service Portfolio Detail** <sup>(1)</sup>

**As of December 31, 2022** 

***(in thousands)***

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Project Name** | **Energy Star Certification** | **LEED Certification** | **BOMA 360 Certification** | **Percent Ownership** | **Number of Buildings** | **Rentable Square Footage Owned** | **Percent Leased** | **Commenced Leased Percentage** | **Economic Leased Percentage** <sup>(2)</sup> | **Annualized Lease Revenues** |
| **Atlanta** | | | | | | | | | | |
| 999 Peachtree Street | ✓ | ✓ | ✓ | 100.0% | 1 | 623 | 85.6% | 81.1% | 72.7% | 20614 |
| 1180 Peachtree Street | ✓ | ✓ | ✓ | 100.0% | 1 | 691 | 96.8% | 96.1% | 87.7% | 33148 |
| Galleria | ✓ |  | ✓ | 100.0% | 5 | 2156 | 78.7% | 73.3% | 68.9% | 54775 |
| Glenridge Highlands | ✓ | ✓ | ✓ | 100.0% | 2 | 714 | 93.7% | 93.1% | 92.4% | 24031 |
| 1155 Perimeter Center West | ✓ | ✓ | ✓ | 100.0% | 1 | 377 | 83.0% | 83.0% | 80.6% | 12016 |
| The Medici | ✓ |  | ✓ | 100.0% | 1 | 156 | 93.6% | 93.6% | 93.6% | 5498 |
| **Metropolitan Area Subtotal / Weighted Average** |  |  |  |  | **11** | **4717** | **85.4%** | **82.1%** | **77.5%** | **150082** |
| **Boston** |  |  |  |  |  |  |  |  |  |  |
| 5 Wall Street | ✓ | ✓ | ✓ | 100.0% | 1 | 182 | 100.0% | 100.0% | 100.0% | 7208 |
| Wayside Office Park | ✓ |  | ✓ | 100.0% | 2 | 473 | 100.0% | 93.0% | 93.0% | 18367 |
| 25 Burlington Mall Road | ✓ |  | ✓ | 100.0% | 1 | 291 | 83.8% | 82.5% | 77.3% | 10045 |
| 80 & 90 Central Street | ✓ |  | ✓ | 100.0% | 2 | 324 | 79.0% | 71.3% | 61.1% | 6064 |
| **Metropolitan Area Subtotal / Weighted Average** |  |  |  |  | **6** | **1270** | **90.9%** | **86.1%** | **82.3%** | **41684** |
| **Dallas** |  |  |  |  |  |  |  |  |  |  |
| Galleria Office Towers | ✓ | ✓ | ✓ | 100.0% | 3 | 1431 | 87.6% | 87.4% | 86.4% | 49999 |
| One Lincoln Park | ✓ | ✓ | ✓ | 100.0% | 1 | 256 | 76.2% | 76.2% | 56.6% | 7584 |
| Park Place on Turtle Creek | ✓ |  | ✓ | 100.0% | 1 | 177 | 81.4% | 79.7% | 76.8% | 6660 |
| 6565 North MacArthur Boulevard | ✓ | ✓ | ✓ | 100.0% | 1 | 256 | 80.1% | 80.1% | 78.1% | 6307 |
| 750 West John Carpenter Freeway | ✓ | ✓ | ✓ | 100.0% | 1 | 307 | 71.3% | 68.7% | 68.7% | 6759 |
| 6011, 6021 & 6031 Connection Drive | ✓ |  | ✓ | 100.0% | 3 | 606 | 91.9% | 91.9% | 83.2% | 18604 |
| Las Colinas Corporate Center | ✓ |  | ✓ | 100.0% | 3 | 491 | 64.8% | 62.5% | 61.9% | 9862 |
| **Metropolitan Area Subtotal / Weighted Average** |  |  |  |  | **13** | **3524** | **82.0%** | **81.4%** | **77.7%** | **105775** |
| **Minneapolis** |  |  |  |  |  |  |  |  |  |  |
| US Bancorp Center | ✓ | ✓ | ✓ | 100.0% | 1 | 937 | 92.4% | 91.4% | 89.5% | 34005 |
| One & Two Meridian Crossings | ✓ |  | ✓ | 100.0% | 2 | 384 | 94.3% | 94.3% | 94.3% | 11909 |
| Crescent Ridge II | ✓ | ✓ | ✓ | 100.0% | 1 | 301 | 86.4% | 72.1% | 69.8% | 8908 |
| Norman Pointe I | ✓ |  | ✓ | 100.0% | 1 | 214 | 85.0% | 85.0% | 84.1% | 6059 |
| 9320 Excelsior Boulevard |  |  |  | 100.0% | 1 | 268 | 100.0% | 100.0% | 100.0% | 5497 |
| **Metropolitan Area Subtotal / Weighted Average** |  |  |  |  | **6** | **2104** | **92.1%** | **89.6%** | **88.4%** | **66378** |
| **New York** |  |  |  |  |  |  |  |  |  |  |
| 60 Broad Street |  |  | ✓ | 100.0% | 1 | 1045 | 86.4% | 86.4% | 86.3% | 47132 |
| **Metropolitan Area Subtotal / Weighted Average** |  |  |  |  | **1** | **1045** | **86.4%** | **86.4%** | **86.3%** | **47132** |

---

------

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Project Name** | **Energy Star Certification** | **LEED Certification** | **BOMA 360 Certification** | **Percent Ownership** | **Number of Buildings** | **Rentable Square Footage Owned** | **Percent Leased** | **Commenced Leased Percentage** | **Economic Leased Percentage** <sup>(2)</sup> | **Annualized Lease Revenues** |
| **Orlando** | | | | | | | | | | |
| 200 South Orange Avenue | ✓ | ✓ | ✓ | 100.0% | 1 | 653 | 93.0% | 84.1% | 75.0% | 22250 |
| CNL Center I & II | ✓ |  | ✓ | 99.0% | 2 | 620 | 94.0% | 94.0% | 86.3% | 23853 |
| 501 West Church Street |  |  |  | 100.0% | 1 | 182 | 100.0% | 100.0% | 100.0% | 1741 |
| 400 & 500 TownPark Commons | ✓ | ✓ | ✓ | 100.0% | 2 | 309 | 100.0% | 100.0% | 100.0% | 9912 |
| **Metropolitan Area Subtotal / Weighted Average** |  |  |  |  | **6** | **1764** | **95.3%** | **92.0%** | **85.9%** | **57756** |
| **Washington, D.C.** |  |  |  |  |  |  |  |  |  |  |
| 4250 North Fairfax Drive | ✓ | ✓ | ✓ | 100.0% | 1 | 308 | 86.0% | 86.0% | 86.0% | 13379 |
| Arlington Gateway | ✓ | ✓ | ✓ | 100.0% | 1 | 329 | 89.4% | 87.8% | 79.0% | 15307 |
| 3100 Clarendon Boulevard | ✓ | ✓ | ✓ | 100.0% | 1 | 261 | 82.4% | 82.4% | 78.5% | 9238 |
| 1201 & 1225 Eye Street | ✓ | ✓ | ✓ | <sup>(3)</sup> | 2 | 496 | 69.2% | 69.2% | 67.9% | 20976 |
| 400 Virginia Avenue | ✓ |  | ✓ | 100.0% | 1 | 226 | 74.8% | 74.8% | 74.8% | 8453 |
| **Metropolitan Area Subtotal / Weighted Average** |  |  |  |  | **6** | **1620** | **79.4%** | **79.1%** | **76.3%** | **67353** |
| **Other** |  |  |  |  |  |  |  |  |  |  |
| Enclave Place | ✓ | ✓ | ✓ | 100.0% | 1 | 301 | 100.0% | 100.0% | 100.0% | 11130 |
| 1430 Enclave Parkway | ✓ | ✓ | ✓ | 100.0% | 1 | 313 | 82.7% | 82.7% | 81.8% | 8002 |
| **Metropolitan Area Subtotal / Weighted Average** |  |  |  |  | **2** | **614** | **91.2%** | **91.2%** | **90.7%** | **19132** |
| ***Grand Total*** |  |  |  |  | **51** | **16658** | **86.7%** | **84.6%** | **81.1%** | **555292** |

---

(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 <u>[33](#iadd70805bcca4717ab5b271bc66524e4_82)</u>.

(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) Piedmont owns 98.6% of 1201 Eye Street and 98.1% of 1225 Eye Street; however, 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.

------

**Piedmont Office Realty Trust, Inc.**

**Major Leases Not Yet Commenced and Major Abatements**

As of December 31, 2022, the Company had approximately 1,140,000 square feet of executed leases for vacant space yet to commence or under rental abatement.

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** | **Market** | **Square Feet<br>Leased** | **Space Status** | **Estimated<br>Commencement<br>Date** | **New / <br>Expansion** |
| Kimley-Horn and Associates | 200 and 222 South Orange Avenue | Orlando | 61348 | Vacant | Q4 2023 | New |
| Brand Industrial Services | Galleria 600 | Atlanta | 50380 | Vacant | Q1 2023 | New |

---

Presented below is a schedule of leases with abatements of 50,000 square feet or greater that either were under abatement as of December 31, 2022 or will be under abatement within the next twelve months.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Tenant** | **Property** | **Market** | **Abated Square Feet** | **Lease Commencement Date** | **Remaining Abatement Schedule** | **Lease Expiration** |
| Builders FirstSource | 6031 Connection Drive | Dallas | 55456 | Q3 2022 | July 2022 through June 2023 | Q2 2035 |
| CVS Caremark | 750 West John Carpenter Freeway | Dallas | 81870 | Q1 2023 | January, February and April 2023 | Q4 2028 |
| Brand Industrial Services | Galleria 600 | Atlanta | 50380 | Q1 2023 | March 2023 through February 2024; March 2025 | Q3 2034 |
| Kimley-Horn and Associates | 200 and 222 South Orange Avenue | Orlando | 61348 | Q4 2023 | November 2023 through October 2024 | Q4 2034 |

---

------

**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 known and unknown risks and uncertainties, which could cause actual results to differ materially from those 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 indicate predictions of future events or trends or that do not relate solely to historical matters. Examples of such statements in this supplemental package include: the Company's estimated range of Net Income, Depreciation, Amortization, Core FFO and Core FFO per diluted share for the year ending December 31, 2023. These statements are based on beliefs and assumptions of Piedmont's management, which in turn are based on information available at the time the statements are made.

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: economic, regulatory, socio-economic (including work from home), technological (e.g. Metaverse, Zoom, etc.), and other changes that impact the real estate market generally, the office sector or the patterns of use of commercial office space in general, or the markets where we primarily operate or have high concentrations of annualized lease revenue; the impact of competition on our efforts to renew existing leases or re-let space on terms similar to existing leases; lease terminations, lease defaults, lease contractions, or changes in the financial condition of our tenants, particularly by one of our large lead tenants; impairment charges on our long-lived assets or goodwill resulting therefrom; the success of our real estate strategies and investment objectives, including our ability to implement successful redevelopment and development strategies or identify and consummate suitable acquisitions and divestitures; the illiquidity of real estate investments, including economic changes, such as rising interest rates, which could impact the number of buyers/sellers of our target properties, and 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, including the potential of supply chain disruptions, and resultant increased costs and risks; 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 properties or 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, including environmental standards imposed on office building owners; 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, such as potential changes in the political environment, a reduction in federal or state funding of our governmental tenants, or 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 the method pursuant to which the London Interbank Offered Rate ("LIBOR") and the Secured Overnight Financing Rate are determined and the planned phasing out of United States dollar LIBOR after June 2023; changing capital reserve requirements on our lenders and rapidly rising interest rates in the public bond markets could impact our ability to finance properties or refinance existing debt or significantly increase operating/financing costs; the effect of future offerings of debt or equity securities on the value of our common stock; additional risks and costs associated with inflation and continuing increases in the rate of inflation, including the possibility of a recession that could negatively impact our operations and the operations of our tenants and their ability to pay rent; uncertainties associated with environmental and regulatory matters; changes in the financial condition of our tenants directly or indirectly resulting from geopolitical developments that could negatively affect important supply chains and 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 other tax law changes which may adversely affect our stockholders; the future effectiveness of our internal controls and procedures; actual or threatened public health epidemics or outbreaks, such as experienced during the COVID-19 pandemic, as well as governmental and private measures taken to combat such health crises, could have a material adverse effect on our business operations and financial results; the adequacy of our general reserve related to tenant lease-related assets or the establishment of any other reserve in the future; 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.

------

![q1_2022supplementalcoverxp.jpg](q1_2022supplementalcoverxp.jpg)