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Investing.com - Piedmont Office Realty Trust (NYSE:PDM), a $1.07 billion market cap office REIT with a notable 6.13% dividend yield, maintained its Buy rating from Truist Securities, which reiterated its $9.00 price target following the company’s third-quarter earnings report.
Piedmont reported third-quarter funds from operations (FFO) of $0.35 per share, exceeding both Truist’s estimate and the consensus forecast of $0.34 per share. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 1.9, though it hasn’t been profitable over the last twelve months.
The company narrowed its full-year 2025 guidance around an unchanged midpoint of $1.41 per share, which sits one cent below the current consensus estimate, while the implied fourth-quarter guidance midpoint of $0.35 per share aligns with market expectations.
Truist noted that management expects positive FFO growth in both 2026 and 2027, potentially outpacing current consensus estimates that project a small year-over-year decline for 2026.
Piedmont Office Realty Trust remains the only Buy-rated stock among the nine office REITs covered by Truist Securities, with the firm suggesting the earnings release may have a slightly positive impact on the stock price.
In other recent news, Piedmont Office Realty Trust reported its second-quarter 2025 earnings, showing a mixed financial outcome. The company experienced a significant earnings per share (EPS) shortfall, posting -0.14 against the anticipated -0.05, a 180% negative surprise. However, revenue surpassed expectations, reaching $140.29 million compared to the forecasted $111.96 million, marking a 25.3% positive surprise. In another development, S&P Global Ratings revised its outlook on Piedmont Realty Trust to negative from stable, citing potential refinancing risks. The concern arises from the company’s shorter weighted-average debt maturity, which is currently 3.8 years as of June 30, 2025. Piedmont’s next major debt maturity is a $325 million term loan due in January 2027, with possible extensions to January 2028. These recent developments highlight the financial dynamics and challenges facing Piedmont Office Realty Trust.
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