Ray Zhang's questions to Piedmont Office Realty Trust Inc (PDM) leadership • Q2 2025
Question
Ray Zhang questioned why the company's full-year guidance was not raised despite strong leasing and an accretive debt buyback, asking about potential offsets. He also inquired about capital allocation strategy, particularly regarding the potential sale of the New York City asset, the buyer pool, pricing expectations, and how proceeds would be redeployed.
Answer
CFO & EVP Sherry Rexroad explained that the accretion from the debt buyback was offset by a recent non-strategic asset sale, and noted that the strong leasing volume will primarily benefit earnings in 2026 and beyond. President, CEO & Director Brent Smith added that the transaction market is improving for core assets, with potential buyers including foreign entities and family offices. He suggested dispositions would likely price in the 8-9 cap rate range, with proceeds redeployed into core-plus assets or opportunistic JVs.