Piedmont Office Realty Trust (PDM) Q2 2026 earnings summary

Executive summary

• Delivered strong Q2 2026 results, raising annual outlook for the second consecutive quarter, driven by robust leasing, record rental rates, and improved occupancy.

• Executed nearly 460,000 sq ft of leasing in Q2 2026, with cash leasing spreads over 14% and rental rate increases of 14% cash and 32% accrual.

• Portfolio comprised 29 in-service projects and two redevelopment projects totaling 15.1 million sq ft, with an 88.9% leased rate as of June 30, 2026.

• Recognized as a top five national office platform, winning nine BOMA Outstanding Building of the Year awards and achieving high sustainability certifications.

• Net loss for Q2 2026 was $11.1 million ($0.09 per share), improving from a $16.8 million loss in Q2 2025.

Financial highlights

• Core FFO per diluted share was $0.38, up $0.01 from consensus and $0.02 year-over-year; NAREIT FFO for Q2 2026 was $47.9 million.

• AFFO for Q2 2026 was $31.0 million, up from $16.2 million in Q2 2025.

• Total revenues for Q2 2026 were $144.1 million, up $3.7 million year-over-year.

• Same-store cash NOI grew 10% for the first half of 2026 and 9% year-over-year in Q2.

• Net effective rent after CapEx reached $25.56 per sq ft, up over 20% from the prior 12-month average.

Outlook and guidance

• Raised 2026 Core FFO guidance to $1.50–$1.55 per diluted share, with NAREIT and Core FFO guidance at $190–$197 million.

• 2026 net loss guidance improved to $(44)–$(41) million, up from initial $(48)–$(44) million.

• Same-store NOI expected to increase 5–8% for the year, up from prior 3–6% estimate.

• Leasing pipeline remains robust, with over 700,000 sq ft in legal stage for Q3 and 2 million sq ft of proposals outstanding.

• No speculative acquisitions, dispositions, or refinancing included in guidance.