Piedmont Realty Trust, Inc. (NYSE: PDM) announced its financial results for the third quarter of 2026 on October 26, 2026. The company, which owns Class A office properties in major U.S. Sunbelt markets, reported a net loss of approximately $21.0 million for the quarter ended September 30, 2026, compared to a net loss of $13.5 million in the prior year period. The net loss per share for the third quarter was $(0.17).
Despite the net loss, the company reported a gain on the sale of real estate assets of $8.9 million for the quarter. Additionally, Piedmont reported a loss on the early extinguishment of debt of $20.2 million during the period.
On a funds-from-operations (FFO) basis, the company reported NAREIT FFO applicable to common stock of $29.9 million for the third quarter of 2026, down from $43.5 million in the prior year. Core FFO applicable to common stock was reported at $50.1 million for the quarter.
The company highlighted several operational achievements during the quarter. Same Store Net Operating Income (NOI) on a cash basis grew approximately 8%. The company executed over 400,000 square feet of leases with cash leasing spreads exceeding 26%. As of the reporting date, signed but not yet commenced leases totaled $29 million, representing 410 basis points of portfolio occupancy.
Piedmont also completed significant capital recycling activity, acquiring 4075 Wilson Boulevard and disposing of a land parcel during the quarter. Furthermore, the company refinanced $287 million of high-coupon debt, which reduced its weighted average cost of debt to 4.8% and extended its maturity profile so that no final debt maturities exist until October 2028.
Management raised its annual outlook for the third consecutive quarter, stating that the outlook is now six cents ahead of the initial 2026 outlook. The company noted that leasing momentum remains strong, with over 700,000 square feet of leases either executed or in the legal stage during October.
