2024-04-19 13:24:19 ET
Summary
- Piedmont Office Realty Trust manages 51 office properties with a focus on the Sunbelt region, primarily in Atlanta and Dallas.
- The company's occupancy rate increased to 87.1% in 2023, up 0.4% Y/Y, but remains below the pre-pandemic 91.2% in 2019.
- Core FFO dropped 13% in 2023 to $1.74/share with a further 13% decrease expected for 2024, with high interest rates offsetting robust rent growth.
- Debt accounts for 72% of enterprise value and represents a key risk for the company, along with mediocre occupancy.
- Continuation of occupancy and rent growth, together with a 7.3% market cap rate, form the goldilocks scenario for common shareholders.
Introduction
Piedmont Office Realty Trust ( PDM ) has largely tracked the performance of the Vanguard Real Estate Index Fund ETF ( VNQ ) in 2024, delivering a 10.5% negative return:
Read the full article on Seeking Alpha
For further details see:
Piedmont Office Realty Trust: Attractive Valuation But Risks Remain