Piedmont Office Realty Trust announces executive departure

ATLANTA - Piedmont Office (NYSE:PDM) Realty Trust, Inc. (NYSE:PDM), a $1.17 billion market cap real estate investment trust currently trading at $9.43, disclosed the upcoming departure of an executive member in a recent filing with the U.S. Securities and Exchange Commission. Robert K. Wiberg, who serves as the Executive Vice President - Northwest and Head of Development, will officially leave the company on December 31, 2024. According to InvestingPro data, this executive change comes as the company's stock has shown strong momentum, gaining over 33% in the past six months.

In addition to the severance benefits, Wiberg has agreed to a twelve-month consulting agreement with Piedmont Office Realty Trust. During this period, he will provide consulting services to the company as required, for which he will be compensated $10,000 monthly.

Piedmont Office Realty Trust, headquartered in Atlanta, Georgia, operates within the nonresidential buildings sector, as indicated by its standard industrial classification. The firm, formerly known as Wells Real Estate Investment Trust Inc., has been incorporated in Maryland and has its fiscal year-end on December 31.

Notably, the company has maintained dividend payments for 15 consecutive years, currently offering a 5.34% dividend yield. Investors seeking deeper analysis can access more than 30 additional key metrics and insights through InvestingPro's detailed coverage.

In other recent news, Piedmont Office Realty Trust has been the subject of an updated outlook by Truist Securities, which raised its price target for the company to $12.00, while maintaining a Buy rating. Despite a slight reduction in forecasted funds from operations (FFO) for 2024 and 2025, Truist Securities noted a positive shift in fundamentals and investor sentiment within the office sector.

A significant drop in Piedmont Office Realty Trust's cost of debt was highlighted as a factor likely to have a beneficial impact on future refinancing activities.

Piedmont Office Realty Trust also reported a notable increase in leasing activity for the third quarter of 2024, reaching the highest level in over a decade. The company's in-service portfolio lease percentage rose to 88.8%, the highest since the first quarter of 2020. However, the Core FFO per diluted share fell to $0.36, primarily due to increased interest expenses and lower rental income following the sale of two properties.

The company completed 65 lease transactions in Q3, with new tenants accounting for 45% and an average lease term of eight years. Piedmont's tenant retention rate stood at 80%, with positive absorption trends, especially in the Sunbelt region.

The company's sustainability efforts have been recognized by GRESB, and it anticipates a $48 million annual revenue increase from a backlog of 1.5 million square feet of leases.

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