(PDM) Piedmont Office Realty Trust - Overview
Sector: Real Estate | Industry: REIT - Office | Exchange: NYSE (USA) | Market Cap: 1.039m USD | Total Return: 12.5% in 12m
Avg Turnover: 7.79M
Qual. Beats: 0
Rev. Trend: -90.5%
Qual. Beats: 0
Warnings
High Debt/EBITDA (8.3) with thin interest coverage (0.4)
Interest Coverage Ratio 0.4 is critical
Beneish M-Score 1.00 > -1.5 - likely earnings manipulation
Altman Z'' -2.73 < 1.0 - financial distress zone
Tailwinds
No distinct edge detected
Piedmont Office Realty Trust (PDM) is a self-managed real estate investment trust (REIT) specializing in the ownership and operation of Class A office properties. The company manages approximately 16 million square feet of real estate, primarily concentrated in high-growth Sunbelt markets within the United States. Established in 1997, the firm utilizes an integrated business model that encompasses property development, management, and leasing operations.
The Office REIT sector typically focuses on high-quality assets in urban and suburban employment hubs to attract corporate tenants. Piedmont specifically targets the Sunbelt region, which has benefited from favorable demographic shifts and corporate migrations compared to traditional gateway markets. The companys strategy emphasizes a hospitality-driven service model to maintain high tenant retention in a competitive commercial environment.
Analyzing the long-term dividend sustainability and debt maturity profile on ValueRay can provide deeper insight into this REITs financial health. Piedmont continues to focus on transforming its portfolio into premier workplace environments to meet evolving corporate demands.
- Sunbelt market concentration drives occupancy growth and rental rate appreciation
- Office portfolio modernization capital expenditures impact free cash flow and dividends
- Elevated interest rates increase debt service costs for variable-rate obligations
- Corporate flight-to-quality trends favor Class A asset leasing and retention
- Regional economic strength in primary markets dictates long-term property valuation trends
| Net Income: -86.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.00 > 0.02 and ΔFCF/TA 0.90 > 1.0 |
| NWC/Revenue: -7.65% < 20% (prev -1.78%; Δ -5.88% < -1%) |
| CFO/TA 0.04 > 3% & CFO 165.0m > Net Income -86.4m |
| Net Debt (2.30b) to EBITDA (277.5m): 8.27 < 3 |
| Current Ratio: 0.84 > 1.5 & < 3 |
| Outstanding Shares: last quarter (124.8m) vs 12m ago 0.44% < -2% |
| Gross Margin: 8.53% > 18% (prev 0.59%; Δ 794.3% > 0.5%) |
| Asset Turnover: 14.07% > 50% (prev 14.20%; Δ -0.12% > 0%) |
| Interest Coverage Ratio: 0.37 > 6 (EBITDA TTM 277.5m / Interest Expense TTM 127.7m) |
| A: -0.01 (Total Current Assets 232.5m - Total Current Liabilities 275.8m) / Total Assets 4.03b |
| B: -0.56 (Retained Earnings -2.24b / Total Assets 4.03b) |
| C: 0.01 (EBIT TTM 47.4m / Avg Total Assets 4.02b) |
| D: -0.88 (Book Value of Equity -2.25b / Total Liabilities 2.55b) |
| Altman-Z'' = -2.73 = D |
| DSRI: 1.08 (Receivables 223.3m/208.3m, Revenue 565.6m/568.5m) |
| GMI: 6.92 (GM 8.53% / 59.08%) |
| AQI: 1.06 (AQ_t 0.11 / AQ_t-1 0.10) |
| SGI: 0.99 (Revenue 565.6m / 568.5m) |
| TATA: -0.06 (NI -86.4m - CFO 165.0m) / TA 4.03b) |
| Beneish M = 2.37 (Cap -4..+1) = D |
As of June 02, 2026, the stock is trading at USD 8.28 with a total of 1,327,805 shares traded.
Over the past week, the price has changed by +0.98%,
over one month by -0.60%,
over three months by +10.11% and
over the past year by +12.50%.
Piedmont Office Realty Trust has received a consensus analysts rating of 3.67. Therefore, it is recommended to hold PDM.
- StrongBuy: 1
- Buy: 0
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 9.7 | 16.8% |
P/E Forward = 75.188
P/S = 1.8368
P/B = 0.7013
P/EG = 16.7433
Revenue TTM = 565.6m USD
EBIT TTM = 47.4m USD
EBITDA TTM = 277.5m USD
Long Term Debt = 2.25b USD (from longTermDebt, last quarter)
Short Term Debt = 111k USD (from shortTermDebt, last fiscal year)
Debt = 2.30b USD (from shortLongTermDebtTotal, last quarter) + Leases 22.9m
Net Debt = 2.30b USD (calculated: Debt 2.30b - CCE 2.28m)
Enterprise Value = 3.33b USD (1.04b + Debt 2.30b - CCE 2.28m)
Interest Coverage Ratio = 0.37 (Ebit TTM 47.4m / Interest Expense TTM 127.7m)
EV/FCF = 367.7x (Enterprise Value 3.33b / FCF TTM 9.07m)
FCF Yield = 0.27% (FCF TTM 9.07m / Enterprise Value 3.33b)
FCF Margin = 1.60% (FCF TTM 9.07m / Revenue TTM 565.6m)
Net Margin = -15.28% (Net Income TTM -86.4m / Revenue TTM 565.6m)
Gross Margin = 8.53% ((Revenue TTM 565.6m - Cost of Revenue TTM 517.3m) / Revenue TTM)
Gross Margin QoQ = -22.74% (prev -22.16%)
Tobins Q-Ratio = 0.83 (Enterprise Value 3.33b / Total Assets 4.03b)
Interest Expense / Debt = 5.56% (Interest Expense 127.7m / Debt 2.30b)
Taxrate = 21.0% (US default 21%)
NOPAT = 37.4m (EBIT 47.4m * (1 - 21.00%))
Current Ratio = 0.84 (Total Current Assets 232.5m / Total Current Liabilities 275.8m)
Debt / Equity = 1.55 (Debt 2.30b / totalStockholderEquity, last quarter 1.48b)
Debt / EBITDA = 8.27 (Net Debt 2.30b / EBITDA 277.5m)
Debt / FCF = 253.1 (Net Debt 2.30b / FCF TTM 9.07m)
Total Stockholder Equity = 1.52b (last 4 quarters mean from totalStockholderEquity)
RoA = -2.15% (Net Income -86.4m / Total Assets 4.03b)
RoE = -2.30% (Net Income TTM -86.4m / Total Stockholder Equity 3.76b)
RoCE = 0.79% (EBIT 47.4m / Capital Employed (Equity 3.76b + L.T.Debt 2.25b))
RoIC = 1.00% (NOPAT 37.4m / Invested Capital 3.76b)
WACC = 5.65% (E(1.04b)/V(3.34b) * Re(8.44%) + D(2.30b)/V(3.34b) * Rd(5.56%) * (1-Tc(0.21)))
Discount Rate = 8.44% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 91.11 | Cagr: 0.39%
[DCF] Terminal Value 75.44% ; FCFF base≈9.07m ; Y1≈9.11m ; Y5≈9.65m
[DCF] Fair Price = N/A (negative equity: EV 150.1m - Net Debt 2.30b = -2.15b; debt exceeds intrinsic value)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -0.70 | # QB: 0
Revenue Correlation: -90.47 | Revenue CAGR: -1.09% | SUE: -0.19 | # QB: 0
EPS current Quarter (2026-06-30): EPS=-0.03 | Chg30d=N/A | Revisions=N/A | Analysts=1
EPS next Quarter (2026-09-30): EPS=-0.01 | Chg30d=N/A | Revisions=N/A | Analysts=1
EPS current Year (2026-12-31): EPS=-0.06 | Chg30d=+4.29% | Revisions=+20% | GrowthEPS=+90.7% | GrowthRev=+3.1%
EPS next Year (2027-12-31): EPS=0.10 | Chg30d=+54.24% | Revisions=-20% | GrowthEPS=+263.2% | GrowthRev=+1.3%