Piedmont Realty Trust reported third quarter 2026 Core FFO that aligned with analyst expectations, supported by strong leasing spreads and robust same-store growth. The company successfully executed 406,000 square feet of leasing with significant cash rental rate increases of 26.2%, marking one of the highest quarterly jumps in its history. Management raised the full-year Core FFO guidance for the third consecutive quarter, reflecting confidence in the Sunbelt office market's demand and recent debt refinancing activities.
Key Highlights
- Same Store NOI on a cash basis grew 7.5% year-over-year, driven by the burn-off of rent abatements from recently commenced leases.
- The in-service portfolio ended the quarter 87.7% leased, slightly exceeding analyst expectations of 87.5%.
- Proactive balance sheet management included refinancing $287 million of high-coupon debt, reducing the weighted average cost of debt to 4.78%.
- Capital recycling remained active with the $52 million acquisition of 4075 Wilson Boulevard in Arlington, VA, and the pending $81.8 million sale of Enclave Place in Houston.