Piedmont Realty Trust Updated Model w/ 2026 And 2027 Higher; NYC Holdover Rent Could Drive More FFO

Research evidence excerpt

Piedmont Realty Trust Updated Model w/ 2026 And 2027 Higher; NYC Holdover Rent Could Drive More FFO

J P M O R G A N North America Equity Research

09 June 2026

Piedmont Realty Trust Neutral

PDM, PDM US

Updated Model w/ 2026 And 2027 Higher; NYC Price (09 Jun 26):$9.23

Holdover Rent Could Drive More FFO Price Target (Dec-26):$10.00

REITs & Real Estate Services

Anthony Paolone, CFA AC

(1-212) 622-6682

anthony.paolone@jpmorgan.com

Michael W. Mueller, CFA

We updated our PDM model and revised our estimates up slightly. Our 2026 FFO/ (1-212) 622-6689

michael.w.mueller@jpmorgan.com

share is up from $1.50 to $1.52 (+7.9% y/y), which is in line with the guidance

Hong Zhangmidpoint of $1.515 (range of $1.49-1.54) and marginally above Bloomberg

(1-212) 622-6416

consensus of $1.51. Our 2027 FFO/share is up from $1.58 to $1.60 (+5.4% y/y), hongliang.zhang@jpmorgan.com

which compares to Bloomberg consensus of $1.58. Our upward revision in 2026

Nahom Tesfazghi

is mainly driven by slightly stronger NOI (due to earlier lease commencements). (1-212) 622 4884

Such benefit translates into a higher 2027 NOI run rate. nahom.tesfazghi@jpmchase.com

Daniella De Armas Rosales

On PDM’s NYC lease at its 60 Broad Street asset, we discussed in our NAREIT (1-212) 622-0050

meeting the dynamic that there is likely to be holdover rent recognized by GAAP daniella.dearmasrosales@jpmchase.com

and thus recognized in FFO through 2H 2026. This is because the lease expired last J.P. Morgan Securities LLC

week and moved into “holdover” status, where a higher rent is paid while the tenant

is in the space without a lease. For PDM, it continues to work toward a long-term

Quarterly Forecasts (FYE Dec)

lease signing with New York City, and any higher holdover rent is expected to be

FFO per share ($)