The following is a summary of the Piedmont Office Realty Trust, Inc. (PDM) Q1 2024 Earnings Call Transcript:
Financial Performance:
Piedmont's strong operational growth resulted in a cash same-store NOI increase of approximately 5% despite market headwinds.
The company continued its 8-year streak of positive cash rental rate roll-ups, with an increase of roughly 8% for the quarter.
The Q1 leasing efforts have built a backlog of 1.3 million square feet of leases yet to commence, equating to estimated future annualized cash rents of $42 million.
Piedmont reported a core FFO per diluted share of $0.39 for the first quarter of 2024.
Business Progress:
In Q1, the company completed approximately 500,000 square feet of total leasing, pushing the lease percentage of their in-service portfolio to 87.8%.
Progress was made in financing and capital market transactions to enhance the company's balance sheet and liquidity position.
Piedmont demonstrated a commitment to sustainability by winning the ENERGY STAR Partner of the Year for 2024.
Ahead for 2024, Piedmont projects disposing of $40 to $60 million more, and is selective with capital deployment aiming to deleverage the balance sheet.
The company is repositioning asset programs at Meridian Crossing and 9320 Excelsior Boulevard, with new leases being executed, and significant redevelopment projects are underway.
Long-term strategies include rehabilitating older vintage assets and targeting 10 to 15 new assets in each existing market.
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