Financial Analysis

Commitments and Contingencies Commitments Under Existing Lease Agreements As a recurring part of its business, Piedmont is typically required under its executed lease agreements to fund tenant improvements, leasing commissions, and building improvements. These commitments are capitalized as the related expenditures are incurred. In addition, certain agreements contain provisions that require Piedmont to issue corporate or property guarantees to provide funding for capital improvements or other financial obligations. As of December 31, 2025, Piedmont had no individual tenant allowance commitments greater than $10 million. Contingencies Related to Tenant Audits/Disputes Certain lease agreements include provisions that grant tenants the right to engage independent auditors to audit their annual operating expense reconciliations. Such audits may result in different interpretations of language in the lease agreements from that made by Piedmont, whic h could result in requests for refunds of previously recognized tenant reimbursement revenues, resulting in financial loss to Piedmont. There were no such reductions during the three years ended December 31, 2025 or 2024. Litigation Piedmont is from time to time a party to legal proceedings, which arise in the ordinary course of its business. None of these ordinary course legal proceedings are reasonably likely to have a material adverse effect on results of operations or financial condition. Piedmont is not aware of any such legal pro …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Debt During the year ended December 31, 2025, Piedmont, through Piedmont OP, issued $400 million in aggregate principal amount of 5.63% senior notes (the ""$400 Million Unsecured Senior Notes""), which mature on January 15, 2033. Upon issuance of the $400 Million Unsecured Senior Notes, Piedmont OP received net proceeds of $397.5 million, reflecting a discount of approximately $2.5 million which will be amortized to interest expense over the seven-year term of the $400 Million Unsecured Senior Notes using the effective interest method. The $400 Million Unsecured Senior Notes are fully and unconditionally guaranteed by Piedmont. Interest on the $400 Million Unsecured Senior Notes is payable semi-annually on January 15 and July 15 of each year commencing January 15, 2026. During the year ended December 31, 2025, Piedmont repurchased an aggregate principal amount of approximately $312.7 million of the aggregate principal amount of its $600 Million Senior Unsecured Notes due 2028, resulting in the recognition of an approximately $37.3 million loss on early extinguishment of debt. During the year ended December 31, 2025, Piedmont, through Piedmont OP, amended its $600 Million Unsecured 2022 Line of Credit and its $325 Million Unsecured 2024 Term Loan to remove the credit spread adjustment from SOFR-based interest rates thereby reducing its all-in interest rates on each facility by 10 basis points. During the year ended December 31, 2025, Piedmont amended the $200 Million Unsecure …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

"Stock Based Compensation Annually, the Compensation Committee of Piedmont's Board of Directors has granted deferred stock award units to certain employees at its discretion. Employee awards typically vest ratably over four years. In addition, Piedmont's independent directors receive an annual grant of deferred stock award units for services rendered and such awards vest over a one year service period. Certain management employees' long-term equity incentive program is allocated between the deferred stock award units described above and a multi-year performance share program whereby actual awards are contingent upon Piedmont's total stockholder return (""TSR"") performance relative to the TSR of a peer group of office REITs. The target incentives for these employees, as well as the peer group to be used for comparative purposes, are predetermined by the board of directors, based on advice given by a third-party compensation consultant. The number of shares earned, if any, are determined at the end of the multi-year performance period (or upon termination) and vest immediately. In the event that a participant's employment is terminated prior to the end of the multi-year period, in certain circumstances the participant may be entitled to a pro-rated award based on Piedmont's TSR relative performance as of the termination date. The grant date fair value of the multi-year performance share awards is estimated using the Monte Carlo valuation method and is recognized ratably over t …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair Value Measurements of Financial Instruments Piedmont considers its cash and cash equivalents, tenant receivables, restricted cash and escrows, accounts payable and accrued expenses, interest rate swap agreements, and debt to meet the definition of financial instruments. The following table sets forth the carrying and estimated fair value for each of Piedmonts financial instruments, as well as its level within the GAAP fair value hierarchy, as of December 31, 2025 and 2024, respectively (in thousands): December 31, 2025 December 31, 2024 Financial Instrument Carrying Value Estimated Fair Value Level Within Fair Value Hierarchy Carrying Value Estimated Fair Value Level Within Fair Value Hierarchy Assets: Cash and cash equivalents (1) $ 731 $ 731 Level 1 $ 109,637 $ 109,637 Level 1 Tenant receivables, net (1) $ 6,155 $ 6,155 Level 1 $ 5,524 $ 5,524 Level 1 Restricted cash and escrows (1) $ 3,060 $ 3,060 Level 1 $ 4,245 $ 4,245 Level 1 Interest rate swaps $ $ Level 2 $ 671 $ 671 Level 2 Liabilities: Accounts payable and accrued expenses (1) $ 26,692 $ 26,692 Level 1 $ 51,035 $ 51,035 Level 1 Interest rate swaps $ 111 $ 111 Level 2 $ 8 $ 8 Level 2 Debt, net $ 2,224,712 $ 2,262,389 Level 2 $ 2,222,346 $ 2,238,531 Level 2 (1) For the periods presented, the carrying value of these financial instruments approximates estimated fair value due to their short-term maturity. Piedmont's debt was carried at book value as of December 31, 2025 and 2024; however, Piedmont's estimate of its …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Income Taxes Piedmonts income tax basis net income/(loss) for the years ended December 31, 2025, 2024, and 2023, is calculated as follows (in thousands): 2025 2024 2023 GAAP basis financial statement net loss $ (83,620) $ (79,069) $ (48,387) Increase/(decrease) in net loss resulting from: Depreciation and amortization expense recognized for financial reporting purposes in excess of amounts recognized for income tax purposes 73,859 80,822 93,791 Rental income accrued for income tax purposes less than amounts for financial reporting purposes (34,377) (23,049) (18,817) Net amortization of above/below-market lease intangibles for income tax purposes in excess of amounts for financial reporting purposes (7,503) (9,266) (12,049) Gain on disposal of property for financial reporting purposes in excess of amounts for income tax purposes (20,862) (20,087) Taxable income of Piedmont Washington Properties, Inc., in excess of amount for financial reporting purposes 4,184 4,771 6,212 Other expenses, including impairment charges, for financial reporting purposes in excess of amounts for income tax purposes 8,270 42,606 40,173 Taxable income for POH in excess of amount for financial reporting purposes 14 49 61 Income tax basis net income/(loss), prior to dividends paid deduction $ (60,035) $ (3,223) $ 60,984 For income tax purposes, dividends to common stockholders are characterized as ordinary income, capital gains, or as a return of a stockholders invested capital. The composition of Piedm …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"Recent Accounting Pronouncements Income Statement Expense Disaggregation Disclosures The Financial Account Standards Board (the ""FASB"") has issued Accounting Standards Update (""ASU"") No. 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (""ASU 2024-03""). ASU 2024-03 aims to enhance the transparency and presentation of income statement expenses in response to increasing demand from investors and other stakeholders for greater clarity and comparability surrounding the nature and composition of an entity's expenses. The amendments of ASU 2024-03 require tabular disclosure of certain cost and expense information, such as employee compensation, in the footnotes to the financial statements. ASU 2024-03 is effective for Piedmont beginning with the Form 10-K for the year ended December 31, 2027, and subsequent interim periods beginning in calendar-year 2028. Piedmont is currently evaluating the potential impact of adoption; however, Piedmont does not anticipate any material impact to its consolidated financial statements as a result of adoption of ASU 2024-03."

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"Segment Information Piedmont's President and Chief Executive Officer has been identified as Piedmont's CODM, as defined by GAAP. The CODM evaluates Piedmont's portfolio and assesses the ongoing operations and performance of its projects utilizing the following geographic segments: Atlanta, Dallas, Orlando, Northern Virginia/Washington, D.C., Minneapolis, New York, and Boston. These operating segments are also Piedmonts reportable segments. As of December 31, 2025, Piedmont also owned two properties in Houston that do not meet the definition of an operating or reportable segment as the CODM does not regularly review these properties for purposes of allocating resources or assessing performance. Further, Piedmont does not maintain a significant presence nor anticipate further investment in this market. These two properties are the primary contributors to accrual-based net operating income (""NOI"") included in ""Other"" below. During the periods presented, there have been no material inter-segment transactions. The accounting policies of the reportable segments are the same as Piedmont's accounting policies. NOI by geographic segment is the primary performance measure reviewed by Piedmont's CODM to assess operating performance and consists only of revenues and expenses directly related to real estate rental operations. NOI is calculated by deducting property operating costs and other segment items from lease revenues and other property related income. Other segment items consi …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Commitments and Contingencies Commitments Under Existing Lease Agreements As a recurring part of its business, Piedmont is typically required under its executed lease agreements to fund tenant improvements, leasing commissions, and building improvements. In addition, certain agreements contain provisions that require Piedmont to issue corporate or property guarantees to provide funding for capital improvements or other financial obligations. As of June 30, 2026, Piedmont had no individually significant tenant allowance commitment greater than $10 million. These commitments will be capitalized as the related expenditures are incurred. Contingencies Related to Tenant Audits/Disputes Certain lease agreements include provisions that grant tenants the right to engage independent auditors to audit their annual operating expense reconciliations. Such audits may result in different interpretations of language in the lease agreements from that made by Piedmont, whic h could result in requests for refunds of previously recognized tenant reimbursement revenues, resulting in financial loss to Piedmont. There were no such reductions during the three and six months ended June 30, 2026 or 2025.

CommitmentsAndContingenciesDisclosureTextBlock

"Debt During the six months ended June 30, 2026, Piedmont amended the $325 million Unsecured 2024 Term Loan (as amended, the ""$400 Million Unsecured 2026 Term Loan"") to, among other things, increase the principal amount from $325 million to $400 million and extend the maturity date to May 28, 2031. Subject to certain conditions, Piedmont may prepay the loans outstanding under the $400 Million Unsecured 2026 Term Loan, in whole or in part, at any time without premium or penalty. Additionally, the terms of the amendment provide for an increase or decrease to Piedmonts debt rating and Total Leverage Ratio (as defined in the term loan agreement) as the basis for determining the applicable interest rate, ranging from 0.75% to 1.55%. The net proceeds from the $400 Million Unsecured 2026 Term Loan were used to repay the outstanding balance under Piedmont's $600 Million Unsecured 2022 Line of Credit, with the remainder used for general corporate purposes. The following table summarizes the terms of Piedmonts consolidated indebtedness outstanding as of June 30, 2026 and December 31, 2025 (in thousands): Facility (1) Stated Rate Effective Rate (2) Maturity Amount Outstanding as of June 30, 2026 December 31, 2025 Secured (Fixed) $197 Million Fixed Rate Mortgage 4.10 % 4.10 % 10/1/2028 $ 186,966 $ 188,822 Unsecured (Variable and Fixed) $600 Million Unsecured 2022 Line of Credit SOFR + 1.05% (3) 4.73 % (4) 6/30/2028 (5) 47,000 $400 Million Unsecured 2026 Term Loan SOFR + 1.15% (3) 4.85 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

"Stock Based Compensation Annually, the Compensation Committee of Piedmont's Board of Directors has granted deferred stock award units to certain employees at its discretion. Employee awards typically vest ratably over four years. In addition, Piedmont's independent directors receive an annual grant of deferred stock award units for services rendered and such awards vest over a one-year service period. In addition to the time-based awards discussed above, certain management employees also participate in a multi-year performance share program whereby actual awards are contingent upon Piedmont's total stockholder return (""TSR"") performance relative to the TSR of a peer group of office REITs. The number of shares earned, if any, are determined at the end of the multi-year performance period (or upon the participant's termination) and vest immediately. The grant date fair value of the multi-year performance share awards is estimated using the Monte Carlo valuation method and is recognized ratably over the performance period. A roll forward of Piedmont's equity based award activity for the six months ended June 30, 2026 is as follows: Shares Weighted-Average Grant Date Fair Value Unvested and Potential Stock Awards as of December 31, 2025 3,953,854 $ 9.13 Deferred Stock Awards Granted 571,098 $ 8.19 Performance Stock Awards Granted 528,963 $ 10.19 Change in Estimated Potential Share Awards based on TSR Performance (128,069) $ 8.68 Performance Stock Awards Vested (471,324) $ 12.3 …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair Value Measurement of Financial Instruments Piedmont considers its cash and cash equivalents, tenant receivables, restricted cash and escrows, accounts payable and accrued expenses, interest rate swap agreements, and debt to meet the definition of financial instruments. The following table sets forth the carrying and estimated fair value for each of Piedmonts financial instruments, as well as its level within the GAAP fair value hierarchy, as of June 30, 2026 and December 31, 2025, respectively (in thousands): June 30, 2026 December 31, 2025 Financial Instrument Carrying Value Estimated Fair Value Level Within Fair Value Hierarchy Carrying Value Estimated Fair Value Level Within Fair Value Hierarchy Assets: Cash and cash equivalents (1) $ 16,785 $ 16,785 Level 1 $ 731 $ 731 Level 1 Tenant receivables, net (1) $ 11,440 $ 11,440 Level 1 $ 6,155 $ 6,155 Level 1 Restricted cash and escrows (1) $ 4,961 $ 4,961 Level 1 $ 3,060 $ 3,060 Level 1 Interest rate swaps $ 530 $ 530 Level 2 $ $ Level 2 Liabilities: Accounts payable and accrued expenses (1) $ 13,751 $ 13,751 Level 1 $ 26,692 $ 26,692 Level 1 Interest rate swaps $ $ Level 2 $ 111 $ 111 Level 2 Debt, net $ 2,250,937 $ 2,278,741 Level 2 $ 2,224,712 $ 2,262,389 Level 2 (1) For the periods presented, the carrying value of these financial instruments approximates estimated fair value due to their short-term maturity. Piedmont's debt was carried at book value as of June 30, 2026 and December 31, 2025; however, Piedmont's estima …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"Recent Accounting Pronouncements Income Statement Expense Disaggregation Disclosures The FASB has issued Accounting Standards Update (""ASU"") No. 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (""ASU 2024-03""). ASU 2024-03 aims to enhance the transparency and presentation of income statement expenses in response to increasing demand from investors and other stakeholders for greater clarity and comparability surrounding the nature and composition of an entity's expenses. The amendments of ASU 2024-03 require tabular disclosure of certain cost and expense information, such as employee compensation, in the footnotes to the financial statements. ASU 2024-03 is effective for Piedmont beginning with the Form 10-K for the year ended December 31, 2027, and subsequent interim periods beginning in calendar-year 2028. Piedmont is currently evaluating the potential impact of adoption; however, Piedmont does not anticipate any material impact to its consolidated financial statements as a result of adoption of ASU 2024-03."

NewAccountingPronouncementsPolicyPolicyTextBlock

"Segment Information Piedmont's President and Chief Executive Officer has been identified as Piedmont's chief operating decision maker (the ""CODM""), as defined by GAAP. The CODM evaluates Piedmont's portfolio and assesses the ongoing operations and performance of its projects utilizing the following geographic segments: Atlanta, Dallas, Orlando, Northern Virginia/Washington, D.C., Minneapolis, New York, and Boston. These seven operating segments are also Piedmonts reportable segments. As of June 30, 2026, Piedmont also owned two projects in Houston that do not meet the definition of an operating or reportable segment as the CODM does not regularly review these properties for purposes of allocating resources or assessing performance. Further, Piedmont does not maintain a significant presence nor anticipate further investment in this market. These two projects are the primary contributors to accrual-based net operating income (""NOI"") included in ""Other"" below. During the periods presented, there have been no material inter-segment transactions. The accounting policies of the reportable segments are the same as Piedmont's accounting policies. NOI by geographic segment is the primary performance measure reviewed by Piedmont's CODM to assess operating performance and consists only of revenues and expenses directly related to real estate rental operations. NOI is calculated by deducting property operating costs and adjusting for other segment items from lease revenues and oth …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing