Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 27, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-34626 | |
Entity Registrant Name | Piedmont Office Realty Trust, Inc. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 58-2328421 | |
Entity Address, Address Line One | 5565 Glenridge Connector Ste. 450 | |
Entity Address, City or Town | Atlanta | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30342 | |
City Area Code | 770 | |
Local Phone Number | 418-8800 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | PDM | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 124,135,427 | |
Document Fiscal Year Focus | 2021 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0001042776 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Real estate assets, at cost: | ||
Land | $ 476,717 | $ 476,716 |
Buildings and improvements, less accumulated depreciation of $804,400 and $751,521 as of June 30, 2021 and December 31, 2020, respectively | 2,398,886 | 2,371,521 |
Intangible lease assets, less accumulated amortization of $79,149 and $67,850 as of June 30, 2021 and December 31, 2020, respectively | 75,853 | 90,594 |
Construction in progress | 67,033 | 56,749 |
Real estate assets held for sale, net | 61,218 | 60,454 |
Total real estate assets | 3,079,707 | 3,056,034 |
Cash and cash equivalents | 8,122 | 7,331 |
Tenant receivables, net of allowance for doubtful accounts of $4,965 and $4,553 as of June 30, 2021 and December 31, 2020, respectively | 6,530 | 8,448 |
Straight-line rent receivables | 156,912 | 148,797 |
Note receivable | 118,500 | 118,500 |
Restricted cash and escrows | 1,578 | 1,883 |
Prepaid expenses and other assets | 29,469 | 23,277 |
Goodwill | 98,918 | 98,918 |
Deferred lease costs, less accumulated amortization of $191,045 and $171,817 as of June 30, 2021 and December 31, 2020, respectively | 250,443 | 272,394 |
Other assets held for sale, net | 8,132 | 4,228 |
Total assets | 3,758,311 | 3,739,810 |
Liabilities: | ||
Unsecured debt, net of discount and unamortized debt issuance costs of $9,430 and $10,932 as of June 30, 2021 and December 31, 2020, respectively | 1,666,570 | 1,594,068 |
Secured debt, net of premiums and unamortized debt issuance costs of $— and $326 as of June 30, 2021 and December 31, 2020, respectively | 0 | 27,936 |
Accounts payable, accrued expenses and accrued capital expenditures | 111,562 | 111,997 |
Dividends payable | 0 | 25,683 |
Deferred income | 70,594 | 36,891 |
Intangible lease liabilities, less accumulated amortization of $32,481 and $27,344 as of June 30, 2021 and December 31, 2020, respectively | 29,761 | 35,440 |
Interest rate swaps | 7,316 | 9,834 |
Total liabilities | 1,885,803 | 1,841,849 |
Commitments and Contingencies (Note 6) | 0 | 0 |
Stockholders’ Equity: | ||
Shares-in-trust, 150,000,000 shares authorized; none outstanding as of June 30, 2021 or December 31, 2020 | 0 | 0 |
Preferred stock, no par value, 100,000,000 shares authorized; none outstanding as of June 30, 2021 or December 31, 2020 | 0 | 0 |
Common stock, $0.01 par value, 750,000,000 shares authorized; 124,131,920 and 123,839,419 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively | 1,241 | 1,238 |
Additional paid-in capital | 3,698,656 | 3,693,996 |
Cumulative distributions in excess of earnings | (1,807,679) | (1,774,856) |
Accumulated other comprehensive loss | (21,368) | (24,100) |
Piedmont stockholders’ equity | 1,870,850 | 1,896,278 |
Noncontrolling interest | 1,658 | 1,683 |
Total stockholders’ equity | 1,872,508 | 1,897,961 |
Total liabilities and stockholders’ equity | $ 3,758,311 | $ 3,739,810 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Assets: | ||
Intangible lease assets, accumulated amortization | $ 79,149 | $ 67,850 |
Tenant receivables, allowance for doubtful accounts | 4,965 | 4,553 |
Deferred lease costs, accumulated amortization | 191,045 | 171,817 |
Liabilities: | ||
Intangible lease liabilities, accumulated amortization | $ 32,481 | $ 27,344 |
Stockholders’ Equity: | ||
Shares-in-trust, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Shares-in-trust, shares outstanding (in shares) | 0 | 0 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 750,000,000 | 750,000,000 |
Common stock, shares issued (in shares) | 124,131,920 | 123,839,419 |
Common stock, shares outstanding (in shares) | 124,131,920 | 123,839,419 |
Unsecured Debt | ||
Liabilities: | ||
Discount (premiums) and unamortized debt issuance costs | $ 9,430 | $ 10,932 |
Secured Debt | ||
Liabilities: | ||
Discount (premiums) and unamortized debt issuance costs | 0 | (326) |
Building and improvements | ||
Assets: | ||
Buildings and improvements, accumulated depreciation | $ 804,400 | $ 751,521 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues: | ||||
Rental and tenant reimbursement revenue | $ 126,967 | $ 131,247 | $ 252,879 | $ 263,401 |
Total revenues | 130,218 | 134,631 | 259,475 | 271,802 |
Expenses: | ||||
Property operating costs | 51,658 | 53,148 | 103,082 | 106,338 |
Depreciation | 29,998 | 27,200 | 58,101 | 55,084 |
Amortization | 20,693 | 24,349 | 43,605 | 47,980 |
General and administrative | 8,211 | 5,937 | 15,462 | 14,580 |
Expenses | 110,560 | 110,634 | 220,250 | 223,982 |
Other income (expense): | ||||
Interest expense | (12,345) | (13,953) | (24,925) | (29,217) |
Other income | 2,631 | 349 | 4,987 | 498 |
Loss on early extinguishment of debt | 0 | (9,336) | 0 | (9,336) |
Gain on sale of real estate assets | 0 | 191,369 | 0 | 191,372 |
Nonoperating income (expense) | (9,714) | 168,429 | (19,938) | 153,317 |
Net income | 9,944 | 192,426 | 19,287 | 201,137 |
Net loss/(income) applicable to noncontrolling interest | 3 | 1 | 4 | (1) |
Net income applicable to Piedmont | $ 9,947 | $ 192,427 | $ 19,291 | $ 201,136 |
Per share information – basic: | ||||
Net income applicable to common stockholders (in dollars per share) | $ 0.08 | $ 1.53 | $ 0.16 | $ 1.60 |
Per share information – diluted: | ||||
Net income applicable to common stockholders (in dollars per share) | $ 0.08 | $ 1.52 | $ 0.15 | $ 1.59 |
Weighted-average common shares outstanding – basic (in shares) | 124,087,113 | 125,974,762 | 124,016,933 | 125,917,859 |
Weighted-average common shares outstanding – diluted (in shares) | 124,703,911 | 126,500,254 | 124,555,274 | 126,455,538 |
Property management fee revenue | ||||
Revenues: | ||||
Property management and other property related revenue | $ 536 | $ 622 | $ 1,294 | $ 1,395 |
Other property related income | ||||
Revenues: | ||||
Property management and other property related revenue | $ 2,715 | $ 2,762 | $ 5,302 | $ 7,006 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income/(Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income applicable to Piedmont | $ 9,947 | $ 192,427 | $ 19,291 | $ 201,136 |
Other comprehensive income/(loss): | ||||
Effective portion of gain/(loss) on derivative instruments that are designated and qualify as cash flow hedges (See Note 4) | (295) | (2,569) | 1,266 | (24,506) |
Plus/(less): Reclassification of net loss included in net income (See Note 4) | 740 | 185 | 1,466 | 179 |
Other comprehensive income/(loss) | 445 | (2,384) | 2,732 | (24,327) |
Comprehensive income applicable to Piedmont | $ 10,392 | $ 190,043 | $ 22,023 | $ 176,809 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Cumulative Distributions in Excess of Earnings | Accumulated Other Comprehensive Income/(Loss) | Non- controlling Interest |
Beginning balance (in shares) at Dec. 31, 2019 | 125,783,000 | |||||
Balance at Dec. 31, 2019 | $ 1,818,974 | $ 1,258 | $ 3,686,398 | $ (1,871,375) | $ 967 | $ 1,726 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends to common stockholders and stockholders of subsidiaries | (52,933) | (5) | (52,908) | (20) | ||
Shares issued and amortized under the 2007 Omnibus Incentive Plan, net of tax (in shares) | 242,000 | |||||
Shares issued and amortized under the 2007 Omnibus Incentive Plan, net of tax | 4,986 | $ 2 | 4,984 | |||
Net (loss)/income applicable to noncontrolling interests | 1 | 1 | ||||
Net income applicable to Piedmont | 201,136 | 201,136 | ||||
Other comprehensive income (loss) | (24,327) | (24,327) | ||||
Ending balance (in shares) at Jun. 30, 2020 | 126,025,000 | |||||
Balance at Jun. 30, 2020 | 1,947,837 | $ 1,260 | 3,691,377 | (1,723,147) | (23,360) | 1,707 |
Beginning balance (in shares) at Mar. 31, 2020 | 125,921,000 | |||||
Balance at Mar. 31, 2020 | 1,783,717 | $ 1,259 | 3,690,821 | (1,889,109) | (20,976) | 1,722 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends to common stockholders and stockholders of subsidiaries | (26,479) | 0 | (26,465) | (14) | ||
Shares issued and amortized under the 2007 Omnibus Incentive Plan, net of tax (in shares) | 104,000 | |||||
Shares issued and amortized under the 2007 Omnibus Incentive Plan, net of tax | 557 | $ 1 | 556 | |||
Net (loss)/income applicable to noncontrolling interests | (1) | (1) | ||||
Net income applicable to Piedmont | 192,427 | 192,427 | ||||
Other comprehensive income (loss) | (2,384) | (2,384) | ||||
Ending balance (in shares) at Jun. 30, 2020 | 126,025,000 | |||||
Balance at Jun. 30, 2020 | $ 1,947,837 | $ 1,260 | 3,691,377 | (1,723,147) | (23,360) | 1,707 |
Beginning balance (in shares) at Dec. 31, 2020 | 123,839,419 | 123,839,000 | ||||
Balance at Dec. 31, 2020 | $ 1,897,961 | $ 1,238 | 3,693,996 | (1,774,856) | (24,100) | 1,683 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Costs of issuance of common stock | (55) | (55) | ||||
Dividends to common stockholders and stockholders of subsidiaries | (52,135) | 0 | (52,114) | (21) | ||
Shares issued and amortized under the 2007 Omnibus Incentive Plan, net of tax (in shares) | 293,000 | |||||
Shares issued and amortized under the 2007 Omnibus Incentive Plan, net of tax | 4,718 | $ 3 | 4,715 | |||
Net (loss)/income applicable to noncontrolling interests | (4) | (4) | ||||
Net income applicable to Piedmont | 19,291 | 19,291 | ||||
Other comprehensive income (loss) | $ 2,732 | 2,732 | ||||
Ending balance (in shares) at Jun. 30, 2021 | 124,131,920 | 124,132,000 | ||||
Balance at Jun. 30, 2021 | $ 1,872,508 | $ 1,241 | 3,698,656 | (1,807,679) | (21,368) | 1,658 |
Beginning balance (in shares) at Mar. 31, 2021 | 124,029,000 | |||||
Balance at Mar. 31, 2021 | 1,887,345 | $ 1,240 | 3,697,801 | (1,791,558) | (21,813) | 1,675 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Costs of issuance of common stock | (55) | (55) | ||||
Dividends to common stockholders and stockholders of subsidiaries | (26,082) | 0 | (26,068) | (14) | ||
Shares issued and amortized under the 2007 Omnibus Incentive Plan, net of tax (in shares) | 103,000 | |||||
Shares issued and amortized under the 2007 Omnibus Incentive Plan, net of tax | 911 | $ 1 | 910 | |||
Net (loss)/income applicable to noncontrolling interests | (3) | (3) | ||||
Net income applicable to Piedmont | 9,947 | 9,947 | ||||
Other comprehensive income (loss) | $ 445 | 445 | ||||
Ending balance (in shares) at Jun. 30, 2021 | 124,131,920 | 124,132,000 | ||||
Balance at Jun. 30, 2021 | $ 1,872,508 | $ 1,241 | $ 3,698,656 | $ (1,807,679) | $ (21,368) | $ 1,658 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends to common stockholders per share (in dollars per share) | $ 0.21 | $ 0.21 | $ 0.42 | $ 0.42 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash Flows from Operating Activities: | ||
Net income | $ 19,287 | $ 201,137 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 58,101 | 55,084 |
Amortization of debt issuance costs inclusive of settled interest rate swaps | 1,441 | 530 |
Other amortization | 40,120 | 43,435 |
Loss on early extinguishment of debt | 0 | 349 |
General reserve for uncollectible accounts | 412 | 4,865 |
Stock compensation expense | 6,451 | 5,545 |
Gain on sale of real estate assets | 0 | (191,372) |
Changes in assets and liabilities: | ||
Increase in tenant and straight-line rent receivables | (6,959) | (20,923) |
Increase in prepaid expenses and other assets | (7,122) | (8,464) |
(Decrease)/increase in accounts payable and accrued expenses | (8,821) | 518 |
Decrease in deferred income | (2,718) | (124) |
Net cash provided by operating activities | 100,192 | 90,580 |
Cash Flows from Investing Activities: | ||
Acquisition of real estate assets and intangibles | 0 | (396,745) |
Capitalized expenditures | (54,706) | (54,952) |
Net sales proceeds from wholly-owned properties | 0 | 350,752 |
Deferred lease costs paid | (6,871) | (23,072) |
Net cash used in investing activities | (61,577) | (124,017) |
Cash Flows from Financing Activities: | ||
Debt issuance and other costs paid | (52) | (409) |
Proceeds from debt | 169,000 | 840,625 |
Repayments of debt | (125,610) | (701,441) |
Discount paid due to loan modification | 0 | (525) |
Costs of issuance of common stock | (29) | 0 |
Value of shares withheld for payment of taxes related to employee stock compensation | (2,936) | (2,601) |
Repurchases of common stock as part of announced plan | (685) | 0 |
Dividends paid and discount on dividend reinvestments | (77,817) | (79,360) |
Net cash (used in)/provided by financing activities | (38,129) | 56,289 |
Net increase in cash, cash equivalents, and restricted cash and escrows | 486 | 22,852 |
Cash, cash equivalents, and restricted cash and escrows, beginning of period | 9,214 | 15,386 |
Cash, cash equivalents, and restricted cash and escrows, end of period | $ 9,700 | $ 38,238 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Piedmont Office Realty Trust, Inc. (“Piedmont”) (NYSE: PDM) is a Maryland corporation that operates in a manner so as to qualify as a real estate investment trust (“REIT”) for federal income tax purposes and engages in the ownership, management, development, redevelopment, and operation of high-quality, Class A office properties located primarily in select sub-markets within seven major Eastern U.S. office markets, with a majority of its revenue being generated from the Sunbelt. Piedmont was incorporated in 1997 and commenced operations in 1998. Piedmont conducts business through its wholly-owned subsidiary, Piedmont Operating Partnership, L.P. (“Piedmont OP”), a Delaware limited partnership. Piedmont OP owns properties directly, through wholly-owned subsidiaries, and through various joint ventures which it controls. References to Piedmont herein shall include Piedmont and all of its subsidiaries, including Piedmont OP and its subsidiaries and joint ventures. As of June 30, 2021, Piedmont owned 54 in-service office properties and one redevelopment asset in select sub-markets located within seven major U.S. office markets: Dallas, Atlanta, Washington, D.C., Minneapolis, Boston, Orlando, and New York. As of June 30, 2021, Piedmont's 54 in-service office properties comprised approximately 16.4 million square feet (unaudited) of primarily Class A commercial office space and were 85.9% leased. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The consolidated financial statements of Piedmont have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”), including the instructions to Form 10-Q and Article 10 of Regulation S-X, and do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair presentation of the results for such periods. Results for these interim periods are not necessarily indicative of a full year’s results. Piedmont’s consolidated financial statements include the accounts of Piedmont, Piedmont’s wholly-owned subsidiaries, any variable interest entity ("VIE") of which Piedmont or any of its wholly-owned subsidiaries is considered to have the power to direct the activities of the entity and the obligation to absorb losses/right to receive benefits, or any entity in which Piedmont or any of its wholly-owned subsidiaries owns a controlling interest. In determining whether Piedmont or Piedmont OP has a controlling interest, the following factors, among others, are considered: equity ownership, voting rights, protective rights of investors, and participatory rights of investors. For further information, refer to the financial statements and footnotes included in Piedmont’s Annual Report on Form 10-K for the year ended December 31, 2020. All intercompany balances and transactions have been eliminated upon consolidation. Further, Piedmont has formed special purpose entities to acquire and hold real estate. Each special purpose entity is a separate legal entity. Consequently, the assets of these special purpose entities are not available to all creditors of Piedmont. The assets owned by these special purpose entities are being reported on a consolidated basis with Piedmont’s assets for financial reporting purposes only. Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying consolidated financial statements and notes. The most significant of these estimates include the underlying cash flows and holding periods used in assessing impairment, judgements regarding the recoverability of goodwill, and the assessment of the collectibility of receivables. While Piedmont has made, what it believes to be, appropriate accounting estimates based on the facts and circumstances available as of the reporting date, actual results could materially differ from those estimates. Income Taxes Piedmont has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended, and has operated as such, beginning with its taxable year ended December 31, 1998. To qualify as a REIT, Piedmont must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of its annual REIT taxable income. As a REIT, Piedmont is generally not subject to federal income taxes, subject to fulfilling, among other things, its taxable income distribution requirement. Piedmont is subject to certain taxes related to the operations of properties in certain locations, as well as operations conducted by its taxable REIT subsidiary which have been provided for in the financial statements. Operating Leases Piedmont recognized the following fixed and variable lease payments, which together comprised rental and tenant reimbursement revenue in the accompanying consolidated statements of income for the three and six months ended June 30, 2021 and 2020, respectively, as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Fixed payments $ 105,209 $ 109,714 $ 210,379 $ 221,210 Variable payments 21,758 21,533 42,500 42,191 Total Rental and Tenant Reimbursement Revenue $ 126,967 $ 131,247 $ 252,879 $ 263,401 Operating leases where Piedmont is the lessee relate primarily to office space in buildings owned by third parties. For the three and six months ended June 30, 2021 and 2020, Piedmont recognized approximately $20,000 and $40,000, respectively, of operating lease costs related to these office space leases. As of June 30, 2021, the remaining lease term of Piedmont's right of use asset is approximately one year, and the discount rate is 1.06%. Reclassifications Certain prior period amounts presented in the accompanying consolidated balance sheets have been reclassified as of December 31, 2020 to conform to the current period financial statement presentation related to the 225 and 235 Presidential Way buildings, which was classified as held for sale as of June 30, 2021. (see Note 7 ). |
Debt
Debt | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table summarizes the terms of Piedmont’s indebtedness outstanding as of June 30, 2021 and December 31, 2020 (in thousands): Facility (1) Stated Rate Effective Rate (2) Maturity Amount Outstanding as of June 30, 2021 December 31, 2020 Secured (Fixed) $35 Million Fixed-Rate Loan 5.55 % — % 9/1/2021 (3) $ — $ 27,610 Net premium and unamortized debt issuance costs — 326 Subtotal — 27,936 Unsecured (Variable and Fixed) Amended and Restated $300 Million Unsecured 2011 Term Loan LIBOR + 1.00% 1.10 % 11/30/2021 (4) 300,000 300,000 $500 Million Unsecured 2018 Line of Credit (5) LIBOR + 0.90% 1.01 % 9/30/2022 (6) 76,000 5,000 $350 Million Unsecured Senior Notes 3.40 % 3.43 % 6/01/2023 350,000 350,000 $400 Million Unsecured Senior Notes 4.45 % 4.10 % 3/15/2024 400,000 400,000 $250 Million Unsecured 2018 Term Loan LIBOR + 0.95% 2.05 % (7) 3/31/2025 250,000 250,000 $300 Million Unsecured Senior Notes 3.15 % 3.90 % 8/15/2030 300,000 300,000 Discounts and unamortized debt issuance costs (9,430) (10,932) Subtotal/Weighted Average (8) 2.88 % 1,666,570 1,594,068 Total $ 1,666,570 $ 1,622,004 (1) All of Piedmont’s outstanding debt as of June 30, 2021 is interest-only until maturity. (2) Effective rate after consideration of settled or in-place interest rate swap agreements and issuance discounts. (3) Repaid on June 1, 2021 without penalty. (4) Piedmont currently anticipates refinancing the Amended and Restated $300 Million Unsecured 2011 Term Loan using the proceeds from a new unsecured debt issuance later in 2021. (5) On a periodic basis, Piedmont may select from multiple interest rate options, including the prime rate and various-length LIBOR locks on all or a portion of the principal. All LIBOR selections are subject to an additional spread over the selected rate based on Piedmont’s current credit rating. (6) Piedmont may extend the term for up to one six (7) The facility has a stated variable rate; however, Piedmont has entered into interest rate swap agreements which effectively fix, exclusive of changes to Piedmont's credit rating, $100 million of the principal balance to 3.56% through the maturity date of the loan. For the remaining variable portion of the loan, Piedmont may periodically select from multiple interest rate options, including the prime rate and various-length LIBOR locks on all or a portion of the principal. All LIBOR selections are subject to an additional spread over the selected rate based on Piedmont’s current credit rating. The rate presented is the weighted-average rate for the effectively fixed and variable portions of the debt outstanding as of June 30, 2021 (see Note 4 for more detail). (8) Weighted average is based on contractual balance of outstanding debt and the stated or effectively fixed interest rates as of June 30, 2021. Piedmont made interest payments on all debt facilities, including interest rate swap cash settlements, of approximately $8.8 million and $13.0 million for the three months ended June 30, 2021 and 2020, respectively, and approximately $25.3 million and $29.0 million for the six months ended June 30, 2021 and 2020, respectively. Also, Piedmont capitalized interest of approximately $0.9 million and $0.2 million for the three months ended June 30, 2021 and 2020, respectively, and approximately $1.7 million and $0.4 million for the six months ended June 30, 2021 and 2020, respectively. As of June 30, 2021, Piedmont believes it was in compliance with all financial covenants associated with its debt instruments. See Note 5 for a description of Piedmont’s estimated fair value of debt as of June 30, 2021. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments Risk Management Objective of Using Derivatives In addition to operational risks which arise in the normal course of business, Piedmont is exposed to economic risks such as interest rate, liquidity, and credit risk. In certain situations, Piedmont has entered into derivative financial instruments such as interest rate swap agreements and other similar agreements to manage interest rate risk exposure arising from current or future variable rate debt transactions. Interest rate swap agreements involve the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Piedmont’s objective in using interest rate derivatives is to add stability to interest expense and to manage its exposure to interest rate movements. Cash Flow Hedges of Interest Rate Risk Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for Piedmont making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The maximum length of time over which Piedmont is hedging its exposure to the variability in future cash flows for forecasted transactions is 45 months. A detail of Piedmont’s interest rate derivatives outstanding as of June 30, 2021 is as follows: Interest Rate Derivatives: Number of Swap Agreements Associated Debt Instrument Total Notional Amount Effective Date Maturity Date Interest rate swaps 2 $250 Million Unsecured 2018 Term Loan $ 100 3/29/2018 3/31/2025 Piedmont presents its interest rate derivatives on its consolidated balance sheets on a gross basis as interest rate swap assets and interest rate swap liabilities. A detail of Piedmont’s interest rate derivatives on a gross and net basis as of June 30, 2021 and December 31, 2020, respectively, is as follows (in thousands): Interest rate swaps classified as: June 30, December 31, Gross derivative assets $ — $ — Gross derivative liabilities (7,316) (9,834) Net derivative liability $ (7,316) $ (9,834) The gain/(loss) on Piedmont's interest rate derivatives, including previously settled forward swaps, that was recorded in other comprehensive income ("OCI") and the accompanying consolidated statements of income as a component of interest expense for the three and six months ended June 30, 2021 and 2020, respectively, was as follows (in thousands): Three Months Ended Six Months Ended Interest Rate Swaps in Cash Flow Hedging Relationships June 30, June 30, June 30, June 30, Amount of gain/(loss) recognized in OCI $ (295) $ (2,569) $ 1,266 $ (24,506) Amount of previously recorded loss reclassified from OCI into Interest Expense $ (740) $ (185) $ (1,466) $ (179) Total amount of interest expense presented in the consolidated statements of income $ (12,345) $ (13,953) $ (24,925) $ (29,217) Piedmont estimates that approximately $2.9 million will be reclassified from OCI as an increase in interest expense over the next twelve months. Piedmont recognized no hedge ineffectiveness on its cash flow hedges during the three and six months ended June 30, 2021 and 2020, respectively. Additionally, see Note 5 for fair value disclosures of Piedmont's derivative instruments. Credit-risk-related Contingent Features Piedmont has agreements with its derivative counterparties that contain a provision whereby if Piedmont defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then Piedmont could also be declared in default on its derivative obligations. If Piedmont were to breach any of the contractual provisions of the derivative contracts, it could be required to settle its liability obligations under the agreements at their termination value of the estimated fair values plus accrued interest, or approximately $7.5 million as of June 30, 2021. Additionally, Piedmont has rights of set-off under certain of its derivative agreements related to potential te rmination fees and amounts payable under the agreements, if a termination were to occur. |
Fair Value Measurement of Finan
Fair Value Measurement of Financial Instruments | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement of Financial Instruments | Fair Value Measurement of Financial Instruments Piedmont considers its cash and cash equivalents, tenant receivables, notes receivable, restricted cash and escrows, accounts payable and accrued expenses, interest rate swap agreements, and debt to meet the definition of financial instruments. The following table sets forth the carrying and estimated fair value for each of Piedmont’s financial instruments, as well as its level within the GAAP fair value hierarchy, as of June 30, 2021 and December 31, 2020, respectively (in thousands): June 30, 2021 December 31, 2020 Financial Instrument Carrying Value Estimated Level Within Fair Value Hierarchy Carrying Value Estimated Level Within Fair Value Hierarchy Assets: Cash and cash equivalents (1) $ 8,122 $ 8,122 Level 1 $ 7,331 $ 7,331 Level 1 Tenant receivables, net (1) $ 6,530 $ 6,530 Level 1 $ 8,448 $ 8,448 Level 1 Notes receivable $ 118,500 $ 119,666 Level 2 $ 118,500 $ 118,500 Level 2 Restricted cash and escrows (1) $ 1,578 $ 1,578 Level 1 $ 1,883 $ 1,883 Level 1 Liabilities: Accounts payable and accrued expenses (1) $ 8,565 $ 8,565 Level 1 $ 45,345 $ 45,345 Level 1 Interest rate swaps $ 7,316 $ 7,316 Level 2 $ 9,834 $ 9,834 Level 2 Debt, net $ 1,666,570 $ 1,741,779 Level 2 $ 1,622,004 $ 1,690,377 Level 2 (1) For the periods presented, the carrying value of these financial instruments, net of applicable allowance, approximates estimated fair value due to their short-term maturity. Piedmont's notes receivable and debt were carried at book value as of June 30, 2021 and December 31, 2020; however, Piedmont's estimate of the fair value of each of these financial instruments as of each period end is disclosed in the table above. Piedmont issued notes receivable in conjunction with the sale of properties to an unrelated third-party buyer in October 2020. As the facts and circumstances as of December 31, 2020 were substantially unchanged since the issuance of the notes receivable in October 2020, Piedmont determined that the book value of the notes approximated their estimated fair value as of December 31, 2020. Piedmont uses widely accepted valuation techniques including discounted cash flow analysis based on the contractual terms of its notes receivables and debt, including the period to maturity of each note receivable and debt facility, and uses observable market-based inputs for similar loan and debt facilities which have transacted recently in the market. Scaling adjustments are made to these inputs to make them applicable to the remaining life of Piedmont's notes receivables and outstanding debt. Consequently, the estimated fair values of the notes as of June 30, 2021 and debt as of both December 31, 2020 and June 30, 2021 are considered to be based on significant other observable inputs (Level 2). Piedmont has not changed its valuation technique for estimating the fair value of its notes receivable or debt. Piedmont’s interest rate swap agreements presented above, and as further discussed in Note 4 are classified as “Interest rate swap” liabilities in the accompanying consolidated balance sheets and were carried at estimated fair value as of June 30, 2021 and December 31, 2020. The valuation of these derivative instruments was determined using widely accepted valuation techniques including discounted cash flow analysis based on the contractual terms of the derivatives, including the period to maturity of each instrument, and uses observable market-based inputs, including interest rate curves and implied volatilities. Therefore, the estimated fair values determined are considered to be based on significant other observable inputs (Level 2). In addition, Piedmont considered both its own and the respective counterparties’ risk of nonperformance in determining the estimated fair value of its derivative financial instruments by estimating the current and potential future exposure under the derivative financial instruments that both Piedmont and the counterparties were at risk for as of the valuation date. The credit |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments Under Existing Lease Agreements As a recurring part of its business, Piedmont is typically required under its executed lease agreements to fund tenant improvements, leasing commissions, and building improvements. In addition, certain agreements contain provisions that require Piedmont to issue corporate or property guarantees to provide funding for capital improvements or other financial obligations. As of June 30, 2021, Piedmont had one individually significant unrecorded tenant allowance commitment of approximately $28.1 million for the approximately 20-year, 520,000 square foot renewal and expansion on behalf of Piedmont's largest tenant, the State of New York at the 60 Broad Street building in New York City. This commitment will be accrued and capitalized as the related expenditures are incurred. Contingencies Related to Tenant Audits/Disputes Certain lease agreements include provisions that grant tenants the right to engage independent auditors to audit their annual operating expense reconciliations. Such audits may result in different interpretations of language in the lease agreements from that made by Piedmont, whic h could result in requests for refunds of previously recognized tenant reimbursement revenues, resulting in financial loss to Piedmont. There were no reductions in rental and reimbursement revenues related to such tenant audits/disputes during the three or six months ended June 30, 2021 or 2020. Contingencies Related to the COVID-19 Pandemic |
Assets Held for Sale
Assets Held for Sale | 6 Months Ended |
Jun. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets Held for Sale | Assets Held for Sale As of June 30, 2021, the 225 and 235 Presidential Way assets in Woburn, Massachusetts, which are assigned to the Boston geographic reportable segment, met the criteria for held for sale classification. Consequently the assets of these properties as of December 31, 2020 are presented as held for sale for comparability in the accompanying consolidated balance sheets. The sale of the properties is expected to close near the end of 2021, subject to customary closing conditions. June 30, 2021 December 31, 2020 Real estate assets held for sale, net: Land $ 7,750 $ 7,750 Building and improvements, less accumulated depreciation of $16,699 and $16,021 as of June 30, 2021 and December 31, 2020, respectively 53,248 52,704 Construction in progress 220 — Total real estate assets held for sale, net $ 61,218 $ 60,454 Other assets held for sale, net: Straight-line rent receivables $ 2,705 $ 2,356 Deferred lease costs, less accumulated amortization of $996 and $802 as of June 30, 2021 and December 31, 2020, respectively 5,427 1,872 Total other assets held for sale, net $ 8,132 $ 4,228 |
Stock Based Compensation
Stock Based Compensation | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock Based Compensation | Stock Based Compensation The Compensation Committee of Piedmont's Board of Directors has typically granted deferred stock award units to all of Piedmont's employees based upon the previous year's financial results measured against various board approved performance metrics. Most employee awards vest ratably over three years. In addition, Piedmont's independent directors receive an annual grant of deferred stock award units for services rendered and such awards vest over a one year service period. Certain management employees' long-term equity incentive program is split equally between the deferred stock award units described above and a multi-year performance share program whereby actual awards are contingent upon Piedmont's total stockholder return ("TSR") performance relative to the TSR of a peer group of office REITs. The target incentives for these certain employees, as well as the peer group to be used for comparative purposes, are predetermined by the Board of Directors, advised by an outside compensation consultant. Any shares earned are awarded at the end of the multi-year performance period and vest upon award. The grant date fair value of the multi-year performance share awards is estimated using the Monte Carlo valuation method. A rollforward of Piedmont's equity based award activity for the six months ended June 30, 2021 is as follows: Shares Weighted-Average Grant Date Fair Value Unvested and Potential Stock Awards as of December 31, 2020 1,009,530 $ 24.37 Deferred Stock Awards Granted 331,354 $ 17.24 Increase in Estimated Potential Share Awards based on TSR Performance 376,060 $ 25.11 Performance Stock Awards Vested (200,674) $ 23.52 Deferred Stock Awards Vested (267,617) $ 18.69 Deferred Stock Awards Forfeited (23,564) $ 19.59 Unvested and Potential Stock Awards as of June 30, 2021 1,225,089 $ 24.14 The following table provides additional information regarding stock award activity during the three and six months ended June 30, 2021 and 2020, respectively (in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Weighted-Average Grant Date Fair Value per share of Deferred Stock Granted During the Period $ 17.96 $ 13.76 $ 17.24 $ 22.39 Total Grant Date Fair Value of Deferred Stock Vested During the Period $ 2,550 $ 3,392 $ 5,002 $ 4,608 Share-based Liability Awards Paid During the Period (1) $ — $ — $ 3,610 $ 4,116 (1) Reflects the value of stock earned pursuant to the 2018-20 and 2017-19 Performance Share Plans during the six months ended June 30, 2021 and 2020, respectively. A detail of Piedmont’s outstanding stock awards and programs as of June 30, 2021 is as follows: Date of grant Type of Award Net Shares Granted (1) Grant Vesting Schedule Unvested Shares May 3, 2019 Deferred Stock Award 256,766 $ 21.04 Of the shares granted, 25% vested on the date of grant, and 25% vested or will vest on May 3, 2020, 2021, and 2022, respectively. 83,176 May 3, 2019 Fiscal Year 2019-2021 Performance Share Program — $ 29.43 Shares awarded, if any, will vest immediately upon determination of award in 2022. 310,576 (2) February 19, 2020 Deferred Stock Award 159,157 $ 24.41 Of the shares granted, 25% vested on the date of grant, and 25% vested or will vest on February 19, 2021, 2022, and 2023, respectively. 89,729 March 19, 2020 Fiscal Year 2020-2022 Performance Share Program — $ 25.83 Shares awarded, if any, will vest immediately upon determination of award in 2023. 291,104 (2) February 17, 2021 Deferred Stock Award 266,469 $ 17.15 Of the shares granted, 25% vested on the date of grant, and 25% vested or will vest on February 17, 2022, 2023, and 2024, respectively. 208,216 February 18, 2021 Fiscal Year 2021-2023 Performance Share Program — $ 23.04 Shares awarded, if any, will vest immediately upon determination of award in 2024. 207,211 (2) May 11, 2021 Deferred Stock Award-Board of Directors 35,077 $ 17.96 Of the shares granted, 100% will vest by May 11, 2022. 35,077 Total 1,225,089 (1) Amounts reflect the total original grant to employees and independent directors, net of shares surrendered upon vesting to satisfy required minimum tax withholding obligations through June 30, 2021. (2) Estimated based on Piedmont's cumulative TSR for the respective performance period through June 30, 2021. Share estimates are subject to change in future periods based upon Piedmont's relative performance compared to its peer group of office REITs' TSR. During the three months ended June 30, 2021 and 2020, Piedmont recognized approximately $3.2 million and $1.6 million, respectively, of compensation expense related to stock awards, all of which related to the amortization of unvested and potential stock awards and the fair value adjustment for liability awards. During the six months ended June 30, 2021 and 2020, Piedmont recognized approximately $6.5 million and $5.5 million, respectively, of compensation expense related to stock awards, of which $5.2 million and $4.3 million, respectively, is related to the amortization of unvested and potential stock awards and fair value adjustment for liability awards. During the six months ended June 30, 2021, 292,501 shares (net of shares surrendered upon vesting to satisfy required minimum tax withholding obligations) were issued to employees and directors. As of June 30, 2021, approximately $10.5 million of unrecognized compensation expense related to unvested and potential stock awards remained, which Piedmont will record in its consolidated statements of income over a weighted-average vesting period of approximately one year. |
Supplemental Disclosures for th
Supplemental Disclosures for the Statement of Consolidated Cash Flows | 6 Months Ended |
Jun. 30, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosures for the Statement of Consolidated Cash Flows | Supplemental Disclosures for the Statement of Consolidated Cash Flows Certain non-cash investing and financing activities for the six months ended June 30, 2021 and 2020, (in thousands) are outlined below: Six Months Ended June 30, June 30, Accrued capital expenditures and deferred lease costs $ 33,199 $ 16,380 Change in accrued dividends and discount on dividend reinvestments $ (25,682) $ (26,427) Change in accrued share repurchases as part of an announced plan $ (685) $ — Accrued stock issuance costs $ 26 $ — The following table provides a reconciliation of cash, cash equivalents, and restricted cash and escrows as presented in the accompanying consolidated statements of cash flows for the six months ended June 30, 2021 and 2020, to the consolidated balance sheets for the respective period (in thousands): 2021 2020 Cash and cash equivalents as of January 1, 2021 and 2020, respectively $ 7,331 $ 13,545 Restricted cash and escrows as of January 1, 2021 and 2020, respectively 1,883 1,841 Cash, cash equivalents, and restricted cash and escrows, beginning of period, as presented in the accompanying consolidated statement of cash flows $ 9,214 $ 15,386 Cash and cash equivalents as of June 30, 2021 and 2020, respectively $ 8,122 $ 36,469 Restricted cash and escrows as of June 30, 2021 and 2020, respectively 1,578 1,769 Cash, cash equivalents, and restricted cash and escrows, end of period, as presented in the accompanying consolidated statement of cash flows $ 9,700 $ 38,238 Amounts in restricted cash and escrows typically represent: escrow accounts required for future property repairs; escrow accounts for the payment of real estate taxes as required under certain of Piedmont's debt agreements; earnest money deposited by a buyer to secure the purchase of one of Piedmont's properties; or security or utility deposits held for tenants as a condition of their lease agreement. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share There are no adjustments to “Net income applicable to Piedmont” for the diluted earnings per share computations. Net income per share-basic is calculated as net income available to common stockholders divided by the weighted average number of common shares outstanding during the period. Net income per share-diluted is calculated as net income available to common stockholders divided by the diluted weighted average number of common shares outstanding during the period, including unvested deferred stock awards. Diluted weighted average number of common shares reflects the potential dilution under the treasury stock method that would occur if the remaining unvested and potential stock awards vested and resulted in additional common shares outstanding. Unvested and potential stock awards which are determined to be anti-dilutive are not included in the calculation of diluted weighted average common shares. For the three months ended June 30, 2021 and 2020, Piedmont calculated and excluded weighted average outstanding anti-dilutive shares of approximately 20,099 and 46,663, respectively, and for the six months ended June 30, 2021 and 2020, Piedmont calculated and excluded weighted average outstanding anti-dilutive shares of 169,813 and 109,229, respectively. The following table reconciles the denominator for the basic and diluted earnings per share computations shown on the consolidated statements of income for the three and six months ended June 30, 2021 and 2020, respectively (in thousands): Three Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Weighted-average common shares – basic 124,087 125,975 124,017 125,918 Plus: Incremental weighted-average shares from time-vested deferred and performance stock awards 617 525 538 538 Weighted-average common shares – diluted 124,704 126,500 124,555 126,456 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Piedmont's President and Chief Executive Officer has been identified as Piedmont's chief operating decision maker ("CODM"), as defined by GAAP. The CODM evaluates Piedmont's portfolio and assesses the ongoing operations and performance of its properties utilizing the following geographic segments: Dallas, Atlanta, Washington, D.C., Minneapolis, Boston, Orlando, and New York. These operating segments are also Piedmont’s reportable segments. As of June 30, 2021, Piedmont also owned two properties in Houston and one property in Chicago that do not meet the definition of an operating or reportable segment as the CODM does not regularly review these properties for purposes of allocating resources or assessing performance. Further, Piedmont does not maintain a significant presence or anticipate further investment in these markets. These three properties are included in "Corporate and other" below. During the periods presented, there have been no material inter segment transactions. The accounting policies of the reportable segments are the same as Piedmont's accounting policies. Accrual-based net operating income ("NOI") by geographic segment is the primary performance measure reviewed by Piedmont's CODM to assess operating performance and consists only of revenues and expenses directly related to real estate rental operations. NOI is calculated by deducting property operating costs from lease revenues and other property related income. NOI reflects property acquisitions and dispositions, occupancy levels, rental rate increases or decreases, and the recoverability of operating expenses. Piedmont's calculation of NOI may not be directly comparable to similarly titled measures calculated by other REITs. Asset value information and capital expenditures by segment are not reported because the CODM does not use these measures to assess performance. The following table presents accrual-based lease revenue and other property related income included in NOI by geographic reportable segment (in thousands): Three Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Dallas $ 28,931 $ 27,066 $ 56,425 $ 48,025 Atlanta 23,145 23,465 45,849 47,367 Washington, D.C. 14,971 14,866 29,284 30,397 Minneapolis 15,089 14,807 30,354 30,644 Boston 15,725 15,072 31,234 30,604 Orlando 12,903 12,695 28,380 26,926 New York 13,296 19,193 26,484 38,639 Total reportable segments 124,060 127,164 248,010 252,602 Corporate and other 6,158 7,467 11,465 19,200 Total Revenues $ 130,218 $ 134,631 $ 259,475 $ 271,802 The following table presents NOI by geographic reportable segment (in thousands): Three Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Dallas $ 17,244 $ 15,899 $ 34,020 $ 28,389 Atlanta 14,703 15,023 29,598 29,934 Washington, D.C. 9,188 9,306 17,659 19,435 Minneapolis 8,414 8,066 16,467 16,766 Boston 11,048 10,552 21,771 21,249 Orlando 7,839 7,995 18,088 16,972 New York 7,939 11,342 15,133 22,457 Total reportable segments 76,375 78,183 152,736 155,202 Corporate and other 2,407 3,233 3,705 10,016 Total NOI $ 78,782 $ 81,416 $ 156,441 $ 165,218 A reconciliation of Net income applicable to Piedmont to NOI is presented below (in thousands): Three Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Net income applicable to Piedmont $ 9,947 $ 192,427 $ 19,291 $ 201,136 Management fee revenue (1) (247) (282) (637) (677) Depreciation and amortization 50,691 51,549 101,706 103,064 General and administrative expenses 8,211 5,937 15,462 14,580 Interest expense 12,345 13,953 24,925 29,217 Other income (2,162) (134) (4,302) (67) Loss on extinguishment of debt — 9,336 — 9,336 Gain on sale of real estate assets — (191,369) — (191,372) Net (loss)/income applicable to noncontrolling interests (3) (1) (4) 1 NOI $ 78,782 $ 81,416 $ 156,441 $ 165,218 (1) Presented net of related operating expenses incurred to earn such management fee revenue. Such operating expenses are a component of property operating costs in the accompanying consolidated statements of income. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Event Third Quarter Dividend Declaration On July 28, 2021, the Board of Directors of Piedmont declared a dividend for the third quarter of 2021 in the amount of $0.21 per common share outstanding to stockholders of record as of the close of business on August 27, 2021. Such dividend will be paid on September 17, 2021. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The consolidated financial statements of Piedmont have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”), including the instructions to Form 10-Q and Article 10 of Regulation S-X, and do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair presentation of the results for such periods. Results for these interim periods are not necessarily indicative of a full year’s results. |
Principles of Consolidation | Piedmont’s consolidated financial statements include the accounts of Piedmont, Piedmont’s wholly-owned subsidiaries, any variable interest entity ("VIE") of which Piedmont or any of its wholly-owned subsidiaries is considered to have the power to direct the activities of the entity and the obligation to absorb losses/right to receive benefits, or any entity in which Piedmont or any of its wholly-owned subsidiaries owns a controlling interest. In determining whether Piedmont or Piedmont OP has a controlling interest, the following factors, among others, are considered: equity ownership, voting rights, protective rights of investors, and participatory rights of investors. For further information, refer to the financial statements and footnotes included in Piedmont’s Annual Report on Form 10-K for the year ended December 31, 2020. All intercompany balances and transactions have been eliminated upon consolidation. Further, Piedmont has formed special purpose entities to acquire and hold real estate. Each special purpose entity is a separate legal entity. Consequently, the assets of these special purpose entities are not available to all creditors of Piedmont. The assets owned by these special purpose entities are being reported on a consolidated basis with Piedmont’s assets for financial reporting purposes only. |
Use of Estimates | Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying consolidated financial statements and notes. The most significant of these estimates include the underlying cash flows and holding periods used in assessing impairment, judgements regarding the recoverability of goodwill, and the assessment of the collectibility of receivables. While Piedmont has made, what it believes to be, appropriate accounting estimates based on the facts and circumstances available as of the reporting date, actual results could materially differ from those estimates. |
Income Taxes | Income Taxes Piedmont has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended, and has operated as such, beginning with its taxable year ended December 31, 1998. To qualify as a REIT, Piedmont must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of its annual REIT taxable income. As a REIT, Piedmont is generally not subject to federal income taxes, subject to fulfilling, among other things, its taxable income distribution requirement. Piedmont is subject to certain taxes related to the operations of properties in certain locations, as well as operations conducted by its taxable REIT subsidiary which have been provided for in the financial statements. |
Reclassifications | Reclassifications Certain prior period amounts presented in the accompanying consolidated balance sheets have been reclassified as of December 31, 2020 to conform to the current period financial statement presentation related to the 225 and 235 Presidential Way buildings, which was classified as held for sale as of June 30, 2021. (see Note 7 ). |
Risk Management Objective of Using Derivatives | Risk Management Objective of Using Derivatives In addition to operational risks which arise in the normal course of business, Piedmont is exposed to economic risks such as interest rate, liquidity, and credit risk. In certain situations, Piedmont has entered into derivative financial instruments such as interest rate swap agreements and other similar agreements to manage interest rate risk exposure arising from current or future variable rate debt transactions. Interest rate swap agreements involve the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Piedmont’s objective in using interest rate derivatives is to add stability to interest expense and to manage its exposure to interest rate movements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Fixed and Variable Lease Revenue | Piedmont recognized the following fixed and variable lease payments, which together comprised rental and tenant reimbursement revenue in the accompanying consolidated statements of income for the three and six months ended June 30, 2021 and 2020, respectively, as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Fixed payments $ 105,209 $ 109,714 $ 210,379 $ 221,210 Variable payments 21,758 21,533 42,500 42,191 Total Rental and Tenant Reimbursement Revenue $ 126,967 $ 131,247 $ 252,879 $ 263,401 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table summarizes the terms of Piedmont’s indebtedness outstanding as of June 30, 2021 and December 31, 2020 (in thousands): Facility (1) Stated Rate Effective Rate (2) Maturity Amount Outstanding as of June 30, 2021 December 31, 2020 Secured (Fixed) $35 Million Fixed-Rate Loan 5.55 % — % 9/1/2021 (3) $ — $ 27,610 Net premium and unamortized debt issuance costs — 326 Subtotal — 27,936 Unsecured (Variable and Fixed) Amended and Restated $300 Million Unsecured 2011 Term Loan LIBOR + 1.00% 1.10 % 11/30/2021 (4) 300,000 300,000 $500 Million Unsecured 2018 Line of Credit (5) LIBOR + 0.90% 1.01 % 9/30/2022 (6) 76,000 5,000 $350 Million Unsecured Senior Notes 3.40 % 3.43 % 6/01/2023 350,000 350,000 $400 Million Unsecured Senior Notes 4.45 % 4.10 % 3/15/2024 400,000 400,000 $250 Million Unsecured 2018 Term Loan LIBOR + 0.95% 2.05 % (7) 3/31/2025 250,000 250,000 $300 Million Unsecured Senior Notes 3.15 % 3.90 % 8/15/2030 300,000 300,000 Discounts and unamortized debt issuance costs (9,430) (10,932) Subtotal/Weighted Average (8) 2.88 % 1,666,570 1,594,068 Total $ 1,666,570 $ 1,622,004 (1) All of Piedmont’s outstanding debt as of June 30, 2021 is interest-only until maturity. (2) Effective rate after consideration of settled or in-place interest rate swap agreements and issuance discounts. (3) Repaid on June 1, 2021 without penalty. (4) Piedmont currently anticipates refinancing the Amended and Restated $300 Million Unsecured 2011 Term Loan using the proceeds from a new unsecured debt issuance later in 2021. (5) On a periodic basis, Piedmont may select from multiple interest rate options, including the prime rate and various-length LIBOR locks on all or a portion of the principal. All LIBOR selections are subject to an additional spread over the selected rate based on Piedmont’s current credit rating. (6) Piedmont may extend the term for up to one six (7) The facility has a stated variable rate; however, Piedmont has entered into interest rate swap agreements which effectively fix, exclusive of changes to Piedmont's credit rating, $100 million of the principal balance to 3.56% through the maturity date of the loan. For the remaining variable portion of the loan, Piedmont may periodically select from multiple interest rate options, including the prime rate and various-length LIBOR locks on all or a portion of the principal. All LIBOR selections are subject to an additional spread over the selected rate based on Piedmont’s current credit rating. The rate presented is the weighted-average rate for the effectively fixed and variable portions of the debt outstanding as of June 30, 2021 (see Note 4 for more detail). (8) Weighted average is based on contractual balance of outstanding debt and the stated or effectively fixed interest rates as of June 30, 2021. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | A detail of Piedmont’s interest rate derivatives outstanding as of June 30, 2021 is as follows: Interest Rate Derivatives: Number of Swap Agreements Associated Debt Instrument Total Notional Amount Effective Date Maturity Date Interest rate swaps 2 $250 Million Unsecured 2018 Term Loan $ 100 3/29/2018 3/31/2025 |
Schedule of Interest Rate Derivatives | A detail of Piedmont’s interest rate derivatives on a gross and net basis as of June 30, 2021 and December 31, 2020, respectively, is as follows (in thousands): Interest rate swaps classified as: June 30, December 31, Gross derivative assets $ — $ — Gross derivative liabilities (7,316) (9,834) Net derivative liability $ (7,316) $ (9,834) |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The gain/(loss) on Piedmont's interest rate derivatives, including previously settled forward swaps, that was recorded in other comprehensive income ("OCI") and the accompanying consolidated statements of income as a component of interest expense for the three and six months ended June 30, 2021 and 2020, respectively, was as follows (in thousands): Three Months Ended Six Months Ended Interest Rate Swaps in Cash Flow Hedging Relationships June 30, June 30, June 30, June 30, Amount of gain/(loss) recognized in OCI $ (295) $ (2,569) $ 1,266 $ (24,506) Amount of previously recorded loss reclassified from OCI into Interest Expense $ (740) $ (185) $ (1,466) $ (179) Total amount of interest expense presented in the consolidated statements of income $ (12,345) $ (13,953) $ (24,925) $ (29,217) |
Fair Value Measurement of Fin_2
Fair Value Measurement of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | The following table sets forth the carrying and estimated fair value for each of Piedmont’s financial instruments, as well as its level within the GAAP fair value hierarchy, as of June 30, 2021 and December 31, 2020, respectively (in thousands): June 30, 2021 December 31, 2020 Financial Instrument Carrying Value Estimated Level Within Fair Value Hierarchy Carrying Value Estimated Level Within Fair Value Hierarchy Assets: Cash and cash equivalents (1) $ 8,122 $ 8,122 Level 1 $ 7,331 $ 7,331 Level 1 Tenant receivables, net (1) $ 6,530 $ 6,530 Level 1 $ 8,448 $ 8,448 Level 1 Notes receivable $ 118,500 $ 119,666 Level 2 $ 118,500 $ 118,500 Level 2 Restricted cash and escrows (1) $ 1,578 $ 1,578 Level 1 $ 1,883 $ 1,883 Level 1 Liabilities: Accounts payable and accrued expenses (1) $ 8,565 $ 8,565 Level 1 $ 45,345 $ 45,345 Level 1 Interest rate swaps $ 7,316 $ 7,316 Level 2 $ 9,834 $ 9,834 Level 2 Debt, net $ 1,666,570 $ 1,741,779 Level 2 $ 1,622,004 $ 1,690,377 Level 2 (1) For the periods presented, the carrying value of these financial instruments, net of applicable allowance, approximates estimated fair value due to their short-term maturity. |
Assets Held for Sale (Tables)
Assets Held for Sale (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Assets Held for Sale | June 30, 2021 December 31, 2020 Real estate assets held for sale, net: Land $ 7,750 $ 7,750 Building and improvements, less accumulated depreciation of $16,699 and $16,021 as of June 30, 2021 and December 31, 2020, respectively 53,248 52,704 Construction in progress 220 — Total real estate assets held for sale, net $ 61,218 $ 60,454 Other assets held for sale, net: Straight-line rent receivables $ 2,705 $ 2,356 Deferred lease costs, less accumulated amortization of $996 and $802 as of June 30, 2021 and December 31, 2020, respectively 5,427 1,872 Total other assets held for sale, net $ 8,132 $ 4,228 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Nonvested Share Activity | A rollforward of Piedmont's equity based award activity for the six months ended June 30, 2021 is as follows: Shares Weighted-Average Grant Date Fair Value Unvested and Potential Stock Awards as of December 31, 2020 1,009,530 $ 24.37 Deferred Stock Awards Granted 331,354 $ 17.24 Increase in Estimated Potential Share Awards based on TSR Performance 376,060 $ 25.11 Performance Stock Awards Vested (200,674) $ 23.52 Deferred Stock Awards Vested (267,617) $ 18.69 Deferred Stock Awards Forfeited (23,564) $ 19.59 Unvested and Potential Stock Awards as of June 30, 2021 1,225,089 $ 24.14 The following table provides additional information regarding stock award activity during the three and six months ended June 30, 2021 and 2020, respectively (in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Weighted-Average Grant Date Fair Value per share of Deferred Stock Granted During the Period $ 17.96 $ 13.76 $ 17.24 $ 22.39 Total Grant Date Fair Value of Deferred Stock Vested During the Period $ 2,550 $ 3,392 $ 5,002 $ 4,608 Share-based Liability Awards Paid During the Period (1) $ — $ — $ 3,610 $ 4,116 (1) Reflects the value of stock earned pursuant to the 2018-20 and 2017-19 Performance Share Plans during the six months ended June 30, 2021 and 2020, respectively. |
Schedule of Outstanding Employee Stock Awards | A detail of Piedmont’s outstanding stock awards and programs as of June 30, 2021 is as follows: Date of grant Type of Award Net Shares Granted (1) Grant Vesting Schedule Unvested Shares May 3, 2019 Deferred Stock Award 256,766 $ 21.04 Of the shares granted, 25% vested on the date of grant, and 25% vested or will vest on May 3, 2020, 2021, and 2022, respectively. 83,176 May 3, 2019 Fiscal Year 2019-2021 Performance Share Program — $ 29.43 Shares awarded, if any, will vest immediately upon determination of award in 2022. 310,576 (2) February 19, 2020 Deferred Stock Award 159,157 $ 24.41 Of the shares granted, 25% vested on the date of grant, and 25% vested or will vest on February 19, 2021, 2022, and 2023, respectively. 89,729 March 19, 2020 Fiscal Year 2020-2022 Performance Share Program — $ 25.83 Shares awarded, if any, will vest immediately upon determination of award in 2023. 291,104 (2) February 17, 2021 Deferred Stock Award 266,469 $ 17.15 Of the shares granted, 25% vested on the date of grant, and 25% vested or will vest on February 17, 2022, 2023, and 2024, respectively. 208,216 February 18, 2021 Fiscal Year 2021-2023 Performance Share Program — $ 23.04 Shares awarded, if any, will vest immediately upon determination of award in 2024. 207,211 (2) May 11, 2021 Deferred Stock Award-Board of Directors 35,077 $ 17.96 Of the shares granted, 100% will vest by May 11, 2022. 35,077 Total 1,225,089 (1) Amounts reflect the total original grant to employees and independent directors, net of shares surrendered upon vesting to satisfy required minimum tax withholding obligations through June 30, 2021. (2) Estimated based on Piedmont's cumulative TSR for the respective performance period through June 30, 2021. Share estimates are subject to change in future periods based upon Piedmont's relative performance compared to its peer group of office REITs' TSR. |
Supplemental Disclosures for _2
Supplemental Disclosures for the Statement of Consolidated Cash Flows (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | Certain non-cash investing and financing activities for the six months ended June 30, 2021 and 2020, (in thousands) are outlined below: Six Months Ended June 30, June 30, Accrued capital expenditures and deferred lease costs $ 33,199 $ 16,380 Change in accrued dividends and discount on dividend reinvestments $ (25,682) $ (26,427) Change in accrued share repurchases as part of an announced plan $ (685) $ — Accrued stock issuance costs $ 26 $ — The following table provides a reconciliation of cash, cash equivalents, and restricted cash and escrows as presented in the accompanying consolidated statements of cash flows for the six months ended June 30, 2021 and 2020, to the consolidated balance sheets for the respective period (in thousands): 2021 2020 Cash and cash equivalents as of January 1, 2021 and 2020, respectively $ 7,331 $ 13,545 Restricted cash and escrows as of January 1, 2021 and 2020, respectively 1,883 1,841 Cash, cash equivalents, and restricted cash and escrows, beginning of period, as presented in the accompanying consolidated statement of cash flows $ 9,214 $ 15,386 Cash and cash equivalents as of June 30, 2021 and 2020, respectively $ 8,122 $ 36,469 Restricted cash and escrows as of June 30, 2021 and 2020, respectively 1,578 1,769 Cash, cash equivalents, and restricted cash and escrows, end of period, as presented in the accompanying consolidated statement of cash flows $ 9,700 $ 38,238 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | The following table reconciles the denominator for the basic and diluted earnings per share computations shown on the consolidated statements of income for the three and six months ended June 30, 2021 and 2020, respectively (in thousands): Three Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Weighted-average common shares – basic 124,087 125,975 124,017 125,918 Plus: Incremental weighted-average shares from time-vested deferred and performance stock awards 617 525 538 538 Weighted-average common shares – diluted 124,704 126,500 124,555 126,456 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Revenue and Net Operating Income, by Segment | The following table presents accrual-based lease revenue and other property related income included in NOI by geographic reportable segment (in thousands): Three Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Dallas $ 28,931 $ 27,066 $ 56,425 $ 48,025 Atlanta 23,145 23,465 45,849 47,367 Washington, D.C. 14,971 14,866 29,284 30,397 Minneapolis 15,089 14,807 30,354 30,644 Boston 15,725 15,072 31,234 30,604 Orlando 12,903 12,695 28,380 26,926 New York 13,296 19,193 26,484 38,639 Total reportable segments 124,060 127,164 248,010 252,602 Corporate and other 6,158 7,467 11,465 19,200 Total Revenues $ 130,218 $ 134,631 $ 259,475 $ 271,802 The following table presents NOI by geographic reportable segment (in thousands): Three Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Dallas $ 17,244 $ 15,899 $ 34,020 $ 28,389 Atlanta 14,703 15,023 29,598 29,934 Washington, D.C. 9,188 9,306 17,659 19,435 Minneapolis 8,414 8,066 16,467 16,766 Boston 11,048 10,552 21,771 21,249 Orlando 7,839 7,995 18,088 16,972 New York 7,939 11,342 15,133 22,457 Total reportable segments 76,375 78,183 152,736 155,202 Corporate and other 2,407 3,233 3,705 10,016 Total NOI $ 78,782 $ 81,416 $ 156,441 $ 165,218 A reconciliation of Net income applicable to Piedmont to NOI is presented below (in thousands): Three Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Net income applicable to Piedmont $ 9,947 $ 192,427 $ 19,291 $ 201,136 Management fee revenue (1) (247) (282) (637) (677) Depreciation and amortization 50,691 51,549 101,706 103,064 General and administrative expenses 8,211 5,937 15,462 14,580 Interest expense 12,345 13,953 24,925 29,217 Other income (2,162) (134) (4,302) (67) Loss on extinguishment of debt — 9,336 — 9,336 Gain on sale of real estate assets — (191,369) — (191,372) Net (loss)/income applicable to noncontrolling interests (3) (1) (4) 1 NOI $ 78,782 $ 81,416 $ 156,441 $ 165,218 (1) Presented net of related operating expenses incurred to earn such management fee revenue. Such operating expenses are a component of property operating costs in the accompanying consolidated statements of income. |
Organization (Details)
Organization (Details) ft² in Millions | Jun. 30, 2021ft²property |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |
Number of major U.S. office markets | 7 |
Number of real estate properties | 54 |
Area of real estate property (in sq ft) | ft² | 16.4 |
Percentage leased | 85.90% |
Redevelopment Asset | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |
Number of real estate properties | 1 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Schedule of Fixed and Variable Lease Payments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Accounting Policies [Abstract] | ||||
Fixed payments | $ 105,209 | $ 109,714 | $ 210,379 | $ 221,210 |
Variable payments | 21,758 | 21,533 | 42,500 | 42,191 |
Total Rental and Tenant Reimbursement Revenue | $ 126,967 | $ 131,247 | $ 252,879 | $ 263,401 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Accounting Policies [Abstract] | ||||
Operating lease costs | $ 20 | $ 20 | $ 40 | $ 40 |
Operating lease, remaining lease term | 1 year | 1 year | ||
Operating lease, discount rate | 1.06% | 1.06% |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) | 6 Months Ended | |
Jun. 30, 2021USD ($)extension | Dec. 31, 2020USD ($) | |
Debt Instrument [Line Items] | ||
Amount outstanding, net | $ 1,666,570,000 | $ 1,622,004,000 |
Secured Debt | ||
Debt Instrument [Line Items] | ||
Net premium (discounts) and unamortized debt issuance costs | 0 | 326,000 |
Amount outstanding, net | 0 | 27,936,000 |
Secured Debt | $35 Million Fixed-Rate Loan | ||
Debt Instrument [Line Items] | ||
Face amount of debt instrument | $ 35,000,000 | |
Stated rate (percent) | 5.55% | |
Effective interest rate (percent) | 0.00% | |
Amount outstanding, gross | $ 0 | 27,610,000 |
Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Weighted average rate (percent) | 2.88% | |
Net premium (discounts) and unamortized debt issuance costs | $ (9,430,000) | (10,932,000) |
Amount outstanding, net | 1,666,570,000 | 1,594,068,000 |
Unsecured Debt | Amended and Restated $300 Million Unsecured 2011 Term Loan | ||
Debt Instrument [Line Items] | ||
Face amount of debt instrument | $ 300,000,000 | |
Effective interest rate (percent) | 1.10% | |
Amount outstanding, gross | $ 300,000,000 | 300,000,000 |
Unsecured Debt | Amended and Restated $300 Million Unsecured 2011 Term Loan | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (percent) | 1.00% | |
Unsecured Debt | $500 Million Unsecured 2018 Line of Credit | ||
Debt Instrument [Line Items] | ||
Maximum extension period (in years) | 1 year | |
Number of extension periods | extension | 2 | |
Extension period (in months) | 6 months | |
Unsecured Debt | $500 Million Unsecured 2018 Line of Credit | Line of Credit | ||
Debt Instrument [Line Items] | ||
Face amount of debt instrument | $ 500,000,000 | |
Effective interest rate (percent) | 1.01% | |
Amount outstanding, gross | $ 76,000,000 | 5,000,000 |
Unsecured Debt | $500 Million Unsecured 2018 Line of Credit | Line of Credit | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (percent) | 0.90% | |
Unsecured Debt | $350 Million Unsecured Senior Notes | ||
Debt Instrument [Line Items] | ||
Face amount of debt instrument | $ 350,000,000 | |
Stated rate (percent) | 3.40% | |
Effective interest rate (percent) | 3.43% | |
Amount outstanding, gross | $ 350,000,000 | 350,000,000 |
Unsecured Debt | $400 Million Unsecured Senior Notes | ||
Debt Instrument [Line Items] | ||
Face amount of debt instrument | $ 400,000,000 | |
Stated rate (percent) | 4.45% | |
Effective interest rate (percent) | 4.10% | |
Amount outstanding, gross | $ 400,000,000 | 400,000,000 |
Unsecured Debt | $250 Million Unsecured 2018 Term Loan | ||
Debt Instrument [Line Items] | ||
Face amount of debt instrument | $ 250,000,000 | |
Effective interest rate (percent) | 2.05% | |
Amount outstanding, gross | $ 250,000,000 | 250,000,000 |
Interest rate on derivative instrument | 3.56% | |
Unsecured Debt | $250 Million Unsecured 2018 Term Loan | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (percent) | 0.95% | |
Unsecured Debt | $300 Million Unsecured Senior Notes | ||
Debt Instrument [Line Items] | ||
Face amount of debt instrument | $ 300,000,000 | |
Stated rate (percent) | 3.15% | |
Effective interest rate (percent) | 3.90% | |
Amount outstanding, gross | $ 300,000,000 | $ 300,000,000 |
Interest rate swaps | $250 Million Unsecured 2018 Term Loan | ||
Debt Instrument [Line Items] | ||
Notional amount of interest rate swap agreements | $ 100,000,000 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Debt Disclosure [Abstract] | ||||
Interest paid | $ 8.8 | $ 13 | $ 25.3 | $ 29 |
Interest costs capitalized | $ 0.9 | $ 0.2 | $ 1.7 | $ 0.4 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Maximum period of extension term | 45 months |
Loss to be reclassified over the next twelve months | $ 2.9 |
Assets needed for immediate settlement, aggregate fair value | $ 7.5 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Notional Amounts of Outstanding Derivative Positions (Details) - $250 Million Unsecured 2018 Term Loan | Jun. 30, 2021USD ($)contract |
Interest rate swaps | |
Derivative [Line Items] | |
Number of swap agreements | contract | 2 |
Notional amount of interest rate swap agreements | $ 100,000,000 |
Unsecured Debt | |
Derivative [Line Items] | |
Face amount of debt instrument | 250,000,000 |
Unsecured Debt | Interest rate swaps | |
Derivative [Line Items] | |
Face amount of debt instrument | $ 250,000,000 |
Derivative Instruments - Sche_2
Derivative Instruments - Schedule of Interest Rate Derivatives (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross derivative assets | $ 0 | $ 0 |
Gross derivative liabilities | (7,316) | (9,834) |
Net derivative liability | $ (7,316) | $ (9,834) |
Derivative Instruments - Effect
Derivative Instruments - Effect on other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative [Line Items] | ||||
Amount of gain/(loss) recognized in OCI | $ (295) | $ (2,569) | $ 1,266 | $ (24,506) |
Total amount of interest expense presented in the consolidated statements of income | (12,345) | (13,953) | (24,925) | (29,217) |
Interest rate swaps | ||||
Derivative [Line Items] | ||||
Amount of gain/(loss) recognized in OCI | (295) | (2,569) | 1,266 | (24,506) |
Amount of previously recorded loss reclassified from OCI into Interest Expense | (740) | (185) | (1,466) | (179) |
Total amount of interest expense presented in the consolidated statements of income | $ (12,345) | $ (13,953) | $ (24,925) | $ (29,217) |
Fair Value Measurement of Fin_3
Fair Value Measurement of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swaps | $ 7,316 | $ 9,834 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 8,122 | 7,331 |
Notes receivable | 118,500 | 118,500 |
Restricted cash and escrows | 1,578 | 1,883 |
Accounts payable and accrued expenses | 8,565 | 45,345 |
Debt, net | 1,666,570 | 1,622,004 |
Tenant receivables, net of allowance for doubtful accounts | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Tenant receivables, net | 6,530 | 8,448 |
Level 1 | Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 8,122 | 7,331 |
Restricted cash and escrows | 1,578 | 1,883 |
Accounts payable and accrued expenses | 8,565 | 45,345 |
Level 1 | Tenant receivables, net of allowance for doubtful accounts | Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Tenant receivables, net | 6,530 | 8,448 |
Level 2 | Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes receivable | 119,666 | 118,500 |
Debt, net | 1,741,779 | 1,690,377 |
Interest rate swaps | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swaps | 7,316 | 9,834 |
Interest rate swaps | Level 2 | Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swaps | $ 7,316 | $ 9,834 |
Commitments and Contingencies (
Commitments and Contingencies (Details) ft² in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($)ft²jointVenture | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)ft²jointVenture | Jun. 30, 2020USD ($) | |
Loss Contingencies [Line Items] | ||||
Number of unrecorded tenant allowance commitments | jointVenture | 1 | 1 | ||
Unrecorded tenant allowance commitment | $ 28,100,000 | $ 28,100,000 | ||
Unrecorded tenant allowance renewal term | 20 years | |||
Unrecorded tenant allowance expansion area (in sq. ft) | ft² | 520 | 520 | ||
Collectibility of Tenant Reimbursements | ||||
Loss Contingencies [Line Items] | ||||
Reductions in reimbursement revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Assets Held for Sale (Details)
Assets Held for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total other assets held for sale, net | $ 8,132 | $ 4,228 |
Disposal Group, Held-for-sale, Not Discontinued Operations | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Real estate assets held for sale, net | 61,218 | 60,454 |
Straight-line rent receivables | 2,705 | 2,356 |
Deferred lease costs, less accumulated amortization of $996 and $802 as of June 30, 2021 and December 31, 2020, respectively | 5,427 | 1,872 |
Accumulated amortization on deferred lease costs | 996 | 802 |
Total other assets held for sale, net | 8,132 | 4,228 |
Disposal Group, Held-for-sale, Not Discontinued Operations | Land | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Real estate assets held for sale, net | 7,750 | 7,750 |
Disposal Group, Held-for-sale, Not Discontinued Operations | Building and building improvements | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Real estate assets held for sale, net | 53,248 | 52,704 |
Accumulated depreciation (building improvements) | 16,699 | 16,021 |
Disposal Group, Held-for-sale, Not Discontinued Operations | Construction in progress | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Real estate assets held for sale, net | $ 220 | $ 0 |
Stock Based Compensation - Narr
Stock Based Compensation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Compensation expense related to stock awards | $ 3.2 | $ 1.6 | $ 6.5 | $ 5.5 |
Amortization of unvested shares | $ 5.2 | $ 4.3 | ||
Total shares issued to employees, directors, and officers (in shares) | 292,501 | |||
Unrecognized compensation cost related to nonvested | $ 10.5 | $ 10.5 | ||
Weighted Average | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost related to nonvested, weighted-average vesting period | 1 year | |||
Independent Director Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 1 year |
Stock Based Compensation - Roll
Stock Based Compensation - Rollforward of Stock Awards (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Shares | ||||
Unvested and potential stock awards, end of period (in shares) | 1,225,089 | 1,225,089 | ||
Stock Awards | ||||
Shares | ||||
Unvested and potential stock awards, beginning of period (in shares) | 1,009,530 | |||
Unvested and potential stock awards, end of period (in shares) | 1,225,089 | 1,225,089 | ||
Weighted-Average Grant Date Fair Value | ||||
Unvested and potential stock awards, beginning of period (in dollars per share) | $ 24.37 | |||
Unvested and potential stock awards, end of period (in dollars per share) | $ 24.14 | $ 24.14 | ||
Deferred Stock Awards | ||||
Shares | ||||
Deferred stock awards granted (in shares) | 331,354 | |||
Stock awards vested (in shares) | (267,617) | |||
Deferred stock awards forfeited (in shares) | (23,564) | |||
Weighted-Average Grant Date Fair Value | ||||
Deferred stock awards granted (in dollars per share) | $ 17.96 | $ 13.76 | $ 17.24 | $ 22.39 |
Stock awards vested (in dollars per share) | 18.69 | |||
Deferred stock awards forfeited (in dollars per share) | $ 19.59 | |||
Performance Share Awards | ||||
Shares | ||||
Increase in estimated potential share award based on TSR performance (in shares) | 376,060 | |||
Stock awards vested (in shares) | (200,674) | |||
Weighted-Average Grant Date Fair Value | ||||
Increase in estimated potential share award (in dollars per share) | $ 25.11 | |||
Stock awards vested (in dollars per share) | $ 23.52 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information Regarding Stock Award Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Deferred Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-Average Grant Date Fair Value per share of Deferred Stock Granted During the Period (in dollars per share) | $ 17.96 | $ 13.76 | $ 17.24 | $ 22.39 |
Total Grant Date Fair Value of Deferred Stock Vested During the Period | $ 2,550 | $ 3,392 | $ 5,002 | $ 4,608 |
Performance Share Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Liability Awards Paid During the Period | $ 0 | $ 0 | $ 3,610 | $ 4,116 |
Stock Based Compensation - Outs
Stock Based Compensation - Outstanding Employee Stock Awards (Details) - $ / shares | May 11, 2021 | Feb. 17, 2021 | Feb. 19, 2020 | May 03, 2019 | Jun. 30, 2021 | Feb. 18, 2021 | Mar. 19, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unvested shares (in shares) | 1,225,089 | ||||||
Deferred Stock Awards | Deferred Stock Award, Granted May 3, 2019 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Net shares granted (in shares) | 256,766 | ||||||
Grant date fair value (in dollars per share) | $ 21.04 | ||||||
Unvested shares (in shares) | 83,176 | ||||||
Deferred Stock Awards | Deferred Stock Award, Granted May 3, 2019 | Year 1 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 25.00% | ||||||
Deferred Stock Awards | Deferred Stock Award, Granted May 3, 2019 | Year 2 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 25.00% | ||||||
Deferred Stock Awards | Deferred Stock Award, Granted May 3, 2019 | Year 3 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 25.00% | ||||||
Deferred Stock Awards | Deferred Stock Award, Granted May 3, 2019 | Year 4 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 25.00% | ||||||
Deferred Stock Awards | Deferred Stock Award, Granted February 19, 2020 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Net shares granted (in shares) | 159,157 | ||||||
Grant date fair value (in dollars per share) | $ 24.41 | ||||||
Unvested shares (in shares) | 89,729 | ||||||
Deferred Stock Awards | Deferred Stock Award, Granted February 19, 2020 | Year 1 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 25.00% | ||||||
Deferred Stock Awards | Deferred Stock Award, Granted February 19, 2020 | Year 2 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 25.00% | ||||||
Deferred Stock Awards | Deferred Stock Award, Granted February 19, 2020 | Year 3 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 25.00% | ||||||
Deferred Stock Awards | Deferred Stock Award, Granted February 19, 2020 | Year 4 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 25.00% | ||||||
Deferred Stock Awards | Deferred Stock Award, Granted February 17, 2021 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Net shares granted (in shares) | 266,469 | ||||||
Grant date fair value (in dollars per share) | $ 17.15 | ||||||
Unvested shares (in shares) | 208,216 | ||||||
Deferred Stock Awards | Deferred Stock Award, Granted February 17, 2021 | Year 1 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 25.00% | ||||||
Deferred Stock Awards | Deferred Stock Award, Granted February 17, 2021 | Year 2 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 25.00% | ||||||
Deferred Stock Awards | Deferred Stock Award, Granted February 17, 2021 | Year 3 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 25.00% | ||||||
Deferred Stock Awards | Deferred Stock Award, Granted February 17, 2021 | Year 4 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 25.00% | ||||||
Deferred Stock Awards | Deferred Stock Award, Granted May 11, 2021 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Net shares granted (in shares) | 35,077 | ||||||
Grant date fair value (in dollars per share) | $ 17.96 | ||||||
Vesting percentage | 100.00% | ||||||
Unvested shares (in shares) | 35,077 | ||||||
Performance Share Awards | Performance Share Program Award, Granted May 3, 2019 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Net shares granted (in shares) | 0 | ||||||
Grant date fair value (in dollars per share) | $ 29.43 | ||||||
Unvested shares (in shares) | 310,576 | ||||||
Performance Share Awards | Performance Share Program Award, Granted March 19, 2020 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Net shares granted (in shares) | 0 | ||||||
Grant date fair value (in dollars per share) | $ 25.83 | ||||||
Unvested shares (in shares) | 291,104 | ||||||
Performance Share Awards | Performance Share Program Award, Granted February 18, 2021 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Net shares granted (in shares) | 0 | ||||||
Grant date fair value (in dollars per share) | $ 23.04 | ||||||
Unvested shares (in shares) | 207,211 |
Supplemental Disclosures for _3
Supplemental Disclosures for the Statement of Consolidated Cash Flows (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | ||||
Accrued capital expenditures and deferred lease costs | $ 33,199 | $ 16,380 | ||
Change in accrued dividends and discount on dividend reinvestments | (25,682) | (26,427) | ||
Change in accrued share repurchases as part of an announced plan | (685) | 0 | ||
Accrued stock issuance costs | 26 | 0 | ||
Cash and cash equivalents | 8,122 | 36,469 | $ 7,331 | $ 13,545 |
Restricted cash and escrows | 1,578 | 1,769 | 1,883 | 1,841 |
Cash, cash equivalents, and restricted cash and escrows, beginning of period, as presented in the accompanying consolidated statement of cash flows | $ 9,700 | $ 38,238 | $ 9,214 | $ 15,386 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive shares excluded (in shares) | 20,099 | 46,663 | 169,813 | 109,229 |
Weighted-average common shares – basic (in shares) | 124,087,113 | 125,974,762 | 124,016,933 | 125,917,859 |
Plus: Incremental weighted-average shares from time-vested deferred and performance stock awards (in shares) | 617,000 | 525,000 | 538,000 | 538,000 |
Weighted-average common shares – diluted (in shares) | 124,703,911 | 126,500,254 | 124,555,274 | 126,455,538 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | Jun. 30, 2021property |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |
Number of real estate properties | 54 |
Other Segments | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |
Number of real estate properties | 3 |
Other Segments | Houston | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |
Number of real estate properties | 2 |
Other Segments | Chicago | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |
Number of real estate properties | 1 |
Segment Information - Revenue b
Segment Information - Revenue by Geographical Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenues | $ 130,218 | $ 134,631 | $ 259,475 | $ 271,802 |
Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenues | 124,060 | 127,164 | 248,010 | 252,602 |
Corporate and other | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenues | 6,158 | 7,467 | 11,465 | 19,200 |
Dallas | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenues | 28,931 | 27,066 | 56,425 | 48,025 |
Atlanta | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenues | 23,145 | 23,465 | 45,849 | 47,367 |
Washington, D.C. | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenues | 14,971 | 14,866 | 29,284 | 30,397 |
Minneapolis | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenues | 15,089 | 14,807 | 30,354 | 30,644 |
Boston | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenues | 15,725 | 15,072 | 31,234 | 30,604 |
Orlando | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenues | 12,903 | 12,695 | 28,380 | 26,926 |
New York | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenues | $ 13,296 | $ 19,193 | $ 26,484 | $ 38,639 |
Segment Reporting - NOI by Geog
Segment Reporting - NOI by Geographical Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net operating income | $ 78,782 | $ 81,416 | $ 156,441 | $ 165,218 |
Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net operating income | 76,375 | 78,183 | 152,736 | 155,202 |
Corporate and other | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net operating income | 2,407 | 3,233 | 3,705 | 10,016 |
Dallas | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net operating income | 17,244 | 15,899 | 34,020 | 28,389 |
Atlanta | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net operating income | 14,703 | 15,023 | 29,598 | 29,934 |
Washington, D.C. | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net operating income | 9,188 | 9,306 | 17,659 | 19,435 |
Minneapolis | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net operating income | 8,414 | 8,066 | 16,467 | 16,766 |
Boston | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net operating income | 11,048 | 10,552 | 21,771 | 21,249 |
Orlando | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net operating income | 7,839 | 7,995 | 18,088 | 16,972 |
New York | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net operating income | $ 7,939 | $ 11,342 | $ 15,133 | $ 22,457 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of GAAP Net Income to NOI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting [Abstract] | ||||
Net income applicable to Piedmont | $ 9,947 | $ 192,427 | $ 19,291 | $ 201,136 |
Management fee revenue | (247) | (282) | (637) | (677) |
Depreciation and amortization | 50,691 | 51,549 | 101,706 | 103,064 |
General and administrative | 8,211 | 5,937 | 15,462 | 14,580 |
Interest expense | 12,345 | 13,953 | 24,925 | 29,217 |
Other income | (2,162) | (134) | (4,302) | (67) |
Loss on early extinguishment of debt | 0 | 9,336 | 0 | 9,336 |
Gain on sale of real estate assets | 0 | (191,369) | 0 | (191,372) |
Net (loss)/income applicable to noncontrolling interests | (3) | (1) | (4) | 1 |
NOI | $ 78,782 | $ 81,416 | $ 156,441 | $ 165,218 |
Subsequent Events (Details)
Subsequent Events (Details) | Jul. 28, 2021$ / shares |
Subsequent Event | |
Subsequent Event [Line Items] | |
Common stock dividends (in dollars per share) | $ 0.21 |