Piedmont Office Realty reports Q3 core FFO 36c, consensus 37c

Commenting on third quarter results, Brent Smith, Piedmont’s president and CEO, said, “The portfolio’s leasing momentum continued during the third quarter with the team executing over 461,000 square feet of total leasing, and bringing our total year-to-date leasing to approximately two million square feet. Leases executed so far this year reflect almost 20% rental rate growth on an accrual basis and take our in-service leased percentage to 88.8% with limited expiries for the remainder of the year. Our contractual backlog stands at 1.5 million square feet of leased space yet to commence or begin paying cash rents, representing approximately $48 million of future annual cash flow. Additionally, as of the end of the third quarter, our pipeline of leases currently in the proposal stage had increased to approximately three million square feet, further evidence that the investments that we have made in our portfolio, combined with a ‘best-in-class’ service and sustainability mindset, are resonating with existing and prospective tenants alike, and demonstrating the growing demand for highly-amenitized, well-located work environments operated by a financially stable landlord.”