UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) March 15, 2010

Piedmont Office Realty Trust, Inc.
(Exact Name of Registrant as Specified in Charter)

 
 	 	 	 	 	
Maryland	 	001-34626	 	58-2328421	
(State or Other Jurisdiction
of Incorporation)	 	(Commission
File Number)	 	(IRS Employer
Identification No.)	
11695 Johns Creek Parkway, Ste 350, Johns Creek, Georgia 30097
(Address of Principal Executive Offices) (Zip Code)
Registrant’s telephone number, including area code (770) 418-8800

 
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see  General Instruction A.2. below):
 
¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
 
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
 
¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
 
¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	

 

Item 2.02	Results of Operations and Financial Condition	
On March 15, 2010, Piedmont Office Realty Trust, Inc. (the “Registrant”) issued a press release announcing its financial results for the fourth quarter 2009 and for the year ended December 31, 2009, and published supplemental information for the fourth quarter 2009 and for the year ended December 31, 2009 to its website. The press release and the supplemental information are attached hereto as Exhibit 99.1 and 99.2, respectively, and are incorporated herein by reference. Pursuant to the rules and regulations of the Securities and Exchange Commission, such exhibit and the information set forth therein are deemed to have been furnished and shall not be deemed to be “filed” under the Securities Exchange Act of 1934.
 
Item 9.01	Financial Statements and Exhibits	
(d) Exhibits:

Exhibit No.	  	Description	
 	 	
99.1	  	Press release dated March 15, 2010.	
 	 	
99.2	  	Piedmont Office Realty Trust, Inc. Quarterly Supplemental Information for the Fourth Quarter 2009 and for the Year Ended December 31, 2009.	

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.

PIEDMONT OFFICE REALTY TRUST, INC.
(Registrant)	
 	 	
By:	 	/s/ Robert E. Bowers	
 	 	Robert E. Bowers
Chief Financial Officer and Executive Vice President	
Date: March 15, 2010

EXHIBIT INDEX

Exhibit No.	  	Description	
 	 	
99.1	  	Press release dated March 15, 2010.	
 	 	
99.2	  	Piedmont Office Realty Trust, Inc. Quarterly Supplemental Information for the Fourth Quarter 2009 and for the Year Ended December 31, 2009.	

Exhibit 99.1
For Immediate Release
PIEDMONT OFFICE REALTY TRUST
REPORTS FOURTH QUARTER AND YEAR-END RESULTS
Atlanta, Georgia, March 15, 2010 (Globe Newswire via COMTEX) – Piedmont Office Realty Trust, Inc. (“Piedmont” or the “Company”) (NYSE: PDM), an owner of Class A properties located primarily in the ten largest U.S. office markets, today announced its results for the fourth quarter and the year ended December 31, 2009.
Donald A. Miller, CFA, President and Chief Executive Officer stated, “In 2009 we executed over two million square feet of leases while maintaining a 78% retention rate, against the backdrop of a challenging economic and operating environment. Early in 2010, we successfully completed the process of transitioning Piedmont to a listed REIT which provides us with more flexible capital alternatives in the future. We believe we entered 2010 in a position of strength, with occupancy at 90%, an extremely solid balance sheet and a team committed to public market best practices.”
Results for the Fourth Quarter ended December 31, 2009
Piedmont reported net income available to common stockholders of $25.9 million, or $0.16 per diluted share, for the fourth quarter 2009 compared to net income of $31.6 million, or $0.20 per diluted share, in the fourth quarter 2008. Revenues for the quarter ended December 31, 2009 totaled $151.0 million compared to $155.4 million in the prior year period. Funds from operations (FFO) for the quarter totaled $69.5 million, or $0.44 per diluted share, compared to $72.8 million, or $0.46 per diluted share, in fourth quarter 2008. Adjusted FFO (AFFO) in the fourth quarter totaled $47.7 million, or $0.30 per diluted share, as compared to $55.6 million, or $0.35 per diluted share, in the fourth quarter 2008.
The Company executed new and renewal leases for approximately 1.2 million square feet in the fourth quarter of 2009 with a 6.2% increase in rent per square foot on an accrual basis and a 3.3% decline on a cash basis.
Results for the Year ended December 31, 2009
Net income for the year ended December 31, 2009 totaled $74.7 million, or $0.47 per diluted share, compared to net income for the prior year of $131.3 million, or $0.82 per diluted share, respectively. Revenues for the year totaled $604.9 million compared to $622.0 million for the year ended December 31, 2008. FFO and FFO per share for the year totaled $239.3 million, or $1.51 per diluted share, compared to $294.9 million, or $1.85 per diluted share, in 2008. In the third quarter of 2009, the Company recognized impairment charges of approximately $37.6 million on assets primarily in its Detroit and New Jersey markets as reflected in both its net income and FFO. Adjusting for these impairment charges, the Company’s Core FFO for the year totaled $276.9 million, or $1.75 per diluted share, compared to $297.0 million, or $1.86 per diluted share, in 2008. AFFO for the year and prior year period totaled $227.3 million, or $1.43 per diluted share, and $253.6 million, or $1.59 per diluted share, respectively.

New leases executed during the year totaled roughly 2.3 million square feet. Rent per square foot for new leases increased 6.5% on an accrual basis as compared to a 1.4% decline on a cash basis.
On December 31, 2009, Piedmont’s office property portfolio was 90.1% occupied with a weighted average lease term of 5.9 years. Same store net operating income on a cash basis declined 3.6% from the prior year to $362.4 million in the face of a challenging operating environment. During the year the Company’s portfolio was unchanged as it neither bought nor sold assets.
Balance Sheet and Capital Markets Activities
At year end, Piedmont’s total assets were $4.4 billion with total debt of $1.5 billion. Total gross assets, exclusive of accumulated depreciation or amortization related to buildings and improvements and intangible lease assets, were $5.2 billion as of December 31, 2009. Total debt to total gross asset value was 29.1% and net debt (total debt less cash and cash equivalents) to core EBITDA was 4.3x. The Company’s fixed charge coverage ratio was 4.5x and it had cash and capacity on its unsecured credit line of approximately $385.6 million and no debt maturities in 2010.
Subsequent Events to December 31, 2009
On January 22, 2010, the Company filed an amendment to its charter to effect a one for three reverse stock split and a recapitalization of its common stock. The recapitalization was approved by the Company’s stockholders on January 20, 2010, resulting in a conversion of each original share of common stock into: (a) 1/12 th  of a share of Class A common stock; plus (b) 1/12 th  of a share of Class B-1 common stock; plus (c) 1/12 th  of a share of Class B-2 common stock; plus (d) 1/12 th  of a share of Class B-3 common stock. Cash was paid in lieu of fractional shares. Per share information in the aforementioned results and subsequently presented financial statements reflect this recapitalization.
On February 10, 2010, Piedmont’s Class A common stock became publicly traded on the New York Stock Exchange, and on February 16, 2010, Piedmont issued approximately 12 million Class A common shares (7.5% of all outstanding common stock as of year-end). Net proceeds (after underwriters’ discount but before offering costs) of approximately $161.8 million from the offering were used to pay down its $500 million revolving credit facility and for general corporate purposes.
Commencing with the first quarter of 2010, Piedmont will be holding publicly telecast quarterly conference calls to discuss results and answer questions from the investment community. Call information will be released prior to the scheduled reporting date.
Guidance for 2010
The following financial guidance for full-year 2010 is based on management’s expectations at this time:

 	  	Low	  	 	  	High	
Net Income	  	$	117	  	-	  	124 million	
Add: Depreciation & Amortization	  	$	152	  	-	  	154 million	
Funds from Operations	  	$	269	  	-	  	278 million	
Funds from Operations per diluted share	  	$	1.56	  	-	  	1.62	

Non-GAAP Financial Measures
This release contains certain supplemental non-GAAP financial measures such as FFO, AFFO, Core FFO, Same store net operating income, and Core EBITDA. See the following pages for definitions and reconciliations of these metrics to their most comparable GAAP metric.
Supplemental Information
Supplemental information regarding Piedmont’s 2009 fourth quarter and year-end financial results can be accessed on our website under the Investor Relations section at “www.piedmontreit.com”.
About Piedmont Office Realty Trust
Piedmont Office Realty Trust, Inc. is a fully integrated, self-administered and self-managed real estate investment trust (“REIT”) specializing in the acquisition, ownership, management, development and disposition of primarily high-quality Class A office buildings located in major U.S. office markets and leased primarily to high-credit-quality tenants. Piedmont is one of the ten largest public office REITs based on total gross assets. Since commencing operations in June 1998, the Company has acquired over $5.5 billion of office and industrial properties. Rated as an investment-grade company by Standard & Poor’s and Moody’s, Piedmont has maintained a low-leverage strategy while acquiring its properties. Over eighty percent of our Annualized Lease Revenue (as defined in the Quarterly Supplemental Information) is derived from our office properties located in the ten largest U.S. office markets including premier office markets such as Chicago, Washington D.C., the New York metropolitan area, Boston and greater Los Angeles.
Forward Looking Statements
Certain statements contained in this press release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We intend for all such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, as applicable. Such information is subject to certain risks and uncertainties, as well as known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of our performance in future periods. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “continue” or similar words or phrases that are predictions of future events or trends and which do not relate solely to historical matters. Examples of such statements in this press release include the strength of the company’s leasing portfolio and the Company’s anticipated net income, depreciation and amortization, FFO, and FFO per share (diluted) for the year ending December 31, 2010.
The following are some of the factors that could cause the Company’s actual results and its expectations to differ materially from those described in the Company’s forward-looking statements: the Company’s ability to successfully identify and consummate suitable acquisitions; current adverse market and economic conditions; lease terminations or lease defaults, particularly by one of the Company’s large lead tenants; the impact of competition on the Company’s efforts to renew existing leases or re-let space; changes in the economies and other conditions of the office market in general and of the specific markets in which the Company operates; economic and regulatory changes; additional risks and costs associated with directly managing properties occupied by government tenants; the success of the Company’s real estate strategies and investment objectives; availability of financing; costs of complying with governmental laws and regulations; uncertainties associated with environmental and other regulatory

matters; the Company’s ability to continue to qualify as a REIT under the Internal Revenue Code; and other factors detailed in our most recent Annual Report on Form 10-K and other documents we file with the Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. We cannot guarantee the accuracy of any such forward-looking statements contained in this press release, and we do not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
For additional information please contact:
Eddie Guilbert
Piedmont Office Realty Trust
Phone: 770-418-8592
Email: research.analysts@piedmontreit.com
Or
Evelyn Infurna
ICR. Inc.
Phone: 203-682-8346
Email: Evelyn.infurna@icrinc.com
Or
Investor Relations
Phone: 800-557-4830
Email: investor.services@piedmontreit.com

Piedmont Office Realty Trust, Inc.
Consolidated Balance Sheets
Unaudited (in thousands)

 
 	 	 	 	 	 	 	 	 	
 	  	December 31, 2009	 	 	December 31, 2008	 	
Assets:	  	 	 	 	 	 	 	 	
Real estate, at cost:	  	 	 	 	 	 	 	 	
Land assets	  	$	651,876	  	 	$	659,637	  	
Buildings and improvements	  	 	3,663,391	  	 	 	3,663,597	  	
Buildings and improvements, accumulated depreciation	  	 	(665,068	) 	 	 	(564,940	) 	
Intangible lease asset	  	 	243,312	  	 	 	285,514	  	
Intangible lease asset, accumulated amortization	  	 	(147,043	) 	 	 	(154,997	) 	
Construction in progress	  	 	17,059	  	 	 	19,259	  	
 	  	 	 	 	 	 	 	 	
Total real estate assets	  	 	3,763,527	  	 	 	3,908,070	  	
Investment in unconsolidated joint ventures	  	 	43,940	  	 	 	48,240	  	
Cash and cash equivalents	  	 	10,004	  	 	 	20,333	  	
Tenant receivables, net of allowance for doubtful accounts	  	 	33,071	  	 	 	35,589	  	
Straight line rent receivable	  	 	95,371	  	 	 	90,818	  	
Notes receivable	  	 	58,739	  	 	 	46,914	  	
Due from unconsolidated joint ventures	  	 	1,083	  	 	 	1,067	  	
Prepaid expenses and other assets	  	 	21,456	  	 	 	21,788	  	
Goodwill	  	 	180,097	  	 	 	180,390	  	
Deferred financing costs, less accumulated amortization	  	 	7,205	  	 	 	9,897	  	
Deferred lease costs, less accumulated amortization	  	 	180,852	  	 	 	194,224	  	
 	  	 	 	 	 	 	 	 	
Total assets	  	$	4,395,345	  	 	$	4,557,330	  	
 	  	 	 	 	 	 	 	 	
Liabilities:	  	 	 	 	 	 	 	 	
Lines of credit and notes payable	  	 	1,516,525	  	 	 	1,523,625	  	
Accounts payable, accrued expenses, and accrued capital expenditures	  	 	97,747	  	 	 	111,411	  	
Deferred income	  	 	34,506	  	 	 	24,920	  	
Intangible lease liabilities, less accumulated amortization	  	 	60,655	  	 	 	73,196	  	
Interest rate swap	  	 	3,866	  	 	 	8,957	  	
 	  	 	 	 	 	 	 	 	
Total liabilities	  	 	1,713,299	  	 	 	1,742,109	  	
Redeemable common stock(1)	  	 	75,164	  	 	 	112,927	  	
Shareholders’ equity(2) :	  	 	 	 	 	 	 	 	
Class A common stock	  	 	397	  	 	 	399	  	
Class B-1 common stock	  	 	397	  	 	 	399	  	
Class B-2 common stock	  	 	397	  	 	 	399	  	
Class B-3 common stock	  	 	398	  	 	 	399	  	
Additional paid in capital	  	 	3,477,168	  	 	 	3,491,654	  	
Cumulative distributions in excess of earnings	  	 	(798,561	) 	 	 	(674,326	) 	
Redeemable common stock	  	 	(75,164	) 	 	 	(112,927	) 	
Other comprehensive loss	  	 	(3,866	) 	 	 	(8,957	) 	
 	  	 	 	 	 	 	 	 	
Piedmont stockholders’ equity	  	 	2,601,166	  	 	 	2,697,040	  	
Non-controlling interest	  	 	5,716	  	 	 	5,254	  	
 	  	 	 	 	 	 	 	 	
Total stockholders’ equity	  	 	2,606,882	  	 	 	2,702,294	  	
 	  	 	 	 	 	 	 	 	
Total liabilities, redeemable common stock and stockholders’ equity	  	$	4,395,345	  	 	$	4,557,330	  	
 	  	 	 	 	 	 	 	 	
All classes of common stock outstanding at end of period (2)	  	 	158,917	  	 	 	159,634	  	
 
(1)	On November 24, 2009, our board of directors suspended the share redemption plan. On February 17, 2010, the board of directors terminated the share redemption plan. This item, therefore, will not be presented on the balance sheet in future periods.	
(2)	On January 22, 2010, we filed an amendment to our charter to effect a recapitalization of our common stock. Shares outstanding reflect this recapitalization. Upon the effectiveness of the recapitalization, each share of our outstanding common stock converted automatically into : (a) 1/12th of a share of our Class A common stock; plus (b) 1/12th of a share of our Class B-1 common stock; plus (c) 1/12th of a share of our Class B-2 common stock; plus (d) 1/12th of a share of our Class B-3 common stock.	
 
1

Piedmont Office Realty Trust, Inc.
Consolidated Statements of Income
Unaudited (in thousands)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	 	Twelve Months Ended	 	
 	  	12/31/2009	 	 	12/31/2008	 	 	12/31/2009	 	 	12/31/2008	 	
Revenues:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental income	  	$	112,000	  	 	$	113,387	  	 	$	449,814	  	 	$	455,183	  	
Tenant reimbursements	  	 	36,108	  	 	 	37,420	  	 	 	149,196	  	 	 	150,264	  	
Property management fee revenue	  	 	928	  	 	 	863	  	 	 	3,111	  	 	 	3,245	  	
Other rental income	  	 	1,981	  	 	 	3,746	  	 	 	2,763	  	 	 	13,273	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	151,017	  	 	 	155,416	  	 	 	604,884	  	 	 	621,965	  	
Real estate operating expenses:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property operating costs	  	 	56,768	  	 	 	55,141	  	 	 	227,867	  	 	 	222,351	  	
Asset and property management fees	  	 	490	  	 	 	533	  	 	 	1,944	  	 	 	2,022	  	
Depreciation	  	 	27,090	  	 	 	25,997	  	 	 	106,073	  	 	 	99,745	  	
Amortization	  	 	16,171	  	 	 	14,903	  	 	 	57,299	  	 	 	62,050	  	
Impairment loss on real estate assets	  	 	—  	  	 	 	—  	  	 	 	35,063	  	 	 	—  	  	
General and administrative	  	 	6,269	  	 	 	8,310	  	 	 	28,271	  	 	 	31,631	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total real estate operating expenses	  	 	106,788	  	 	 	104,884	  	 	 	456,517	  	 	 	417,799	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Real estate operating income	  	 	44,229	  	 	 	50,532	  	 	 	148,367	  	 	 	204,166	  	
Other income (expense):	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest expense	  	 	(19,488	) 	 	 	(20,181	) 	 	 	(77,743	) 	 	 	(75,988	) 	
Interest and other income	  	 	652	  	 	 	741	  	 	 	4,450	  	 	 	3,416	  	
Equity in income of unconsolidated joint ventures	  	 	672	  	 	 	619	  	 	 	104	  	 	 	256	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total other income (expense)	  	 	(18,164	) 	 	 	(18,821	) 	 	 	(73,189	) 	 	 	(72,316	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from continuing operations	  	 	26,065	  	 	 	31,711	  	 	 	75,178	  	 	 	131,850	  	
Operating income	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	10	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total discontinued operations	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	10	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	 	26,065	  	 	 	31,711	  	 	 	75,178	  	 	 	131,860	  	
Less: Net income attributable to noncontrolling interest	  	 	(119	) 	 	 	(116	) 	 	 	(478	) 	 	 	(546	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to Piedmont	  	$	25,946	  	 	$	31,595	  	 	$	74,700	  	 	$	131,314	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted average common shares outstanding - diluted	  	 	158,393	  	 	 	158,773	  	 	 	158,581	  	 	 	159,722	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income per share available to common stockholders - basic and diluted	  	$	0.16	  	 	$	0.20	  	 	$	0.47	  	 	$	0.82	  	

2

Piedmont Office Realty Trust, Inc.
Funds From Operations, Core Funds From Operations and Adjusted Funds From Operations
Unaudited (in thousands except for per share data)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	 	Twelve Months Ended	 	
 	  	12/31/2009	 	 	12/31/2008	 	 	12/31/2009	 	 	12/31/2008	 	
Net income attributable to Piedmont	  	$	25,946	  	 	$	31,595	  	 	$	74,700	  	 	$	131,314	  	
Add:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation (1)	  	 	27,264	  	 	 	26,209	  	 	 	106,878	  	 	 	100,849	  	
Amortization (1)	  	 	16,274	  	 	 	15,011	  	 	 	57,708	  	 	 	62,767	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Funds from operations*	  	 	69,484	  	 	 	72,815	  	 	 	239,286	  	 	 	294,930	  	
Add:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Impairment loss on real estate assets (1)	  	 	—  	  	 	 	—  	  	 	 	37,633	  	 	 	2,088	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core funds from operations*	  	 	69,484	  	 	 	72,815	  	 	 	276,919	  	 	 	297,018	  	
Add:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation on non real estate assets	  	 	171	  	 	 	147	  	 	 	632	  	 	 	379	  	
Non-cash compensation expense	  	 	671	  	 	 	778	  	 	 	3,178	  	 	 	3,555	  	
Amortization related to notes payable	  	 	696	  	 	 	697	  	 	 	2,786	  	 	 	1,859	  	
Deduct:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Straight line effects of lease revenue (1)	  	 	(1,618	) 	 	 	(661	) 	 	 	(997	) 	 	 	(1,216	) 	
Amortization of lease-related intangibles (1)	  	 	(1,663	) 	 	 	(884	) 	 	 	(5,399	) 	 	 	(3,214	) 	
Amortization related to notes receivable	  	 	(334	) 	 	 	(268	) 	 	 	(2,278	) 	 	 	(840	) 	
Non-incremental capital expenditures(2)	  	 	(19,698	) 	 	 	(16,990	) 	 	 	(47,496	) 	 	 	(43,892	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted funds from operations*	  	$	47,709	  	 	$	55,634	  	 	$	227,345	  	 	$	253,649	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted average common shares outstanding - diluted	  	 	158,393	  	 	 	158,773	  	 	 	158,581	  	 	 	159,722	  	
Funds from operations* per share (diluted)	  	$	0.44	  	 	$	0.46	  	 	$	1.51	  	 	$	1.85	  	
Core funds from operations* per share (diluted)	  	$	0.44	  	 	$	0.46	  	 	$	1.75	  	 	$	1.86	  	
Adjusted funds from operations* per share (diluted)	  	$	0.30	  	 	$	0.35	  	 	$	1.43	  	 	$	1.59	  	
 
(1)	Includes adjustments for wholly-owned properties, and for our proportionate ownership in unconsolidated joint ventures.	
(2)	Capital expenditures of a recurring nature related to tenant improvements and leasing commissions that do not incrementally enhance the underlying assets’ income generating capacity. We exclude first generation tenant improvements and leasing commissions from this measure.	
*Definitions
Funds From Operations (“FFO”): FFO is calculated in accordance with the current National Association of Real Estate Investment Trusts (“NAREIT”) definition. NAREIT currently defines FFO as net income (computed in accordance with GAAP), excluding gains or losses from sales of property plus depreciation and amortization on real estate assets, and after the same adjustments for unconsolidated partnerships and joint ventures. Such factors can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates. FFO may provide valuable comparisons of operating performance between periods and with other REITs. FFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating performance to net income. We believe that FFO is a beneficial indicator of the performance of an equity REIT. However, other REITs may not define FFO in accordance with the NAREIT definition, or may interpret the current NAREIT definition differently than we do; therefore, our computation of FFO may not be comparable to that of such other REITs.
Core Funds From Operations (“Core FFO”): We calculate Core FFO by starting with FFO, as defined by NAREIT, and adjust for certain non-recurring items such as impairment losses and other extraordinary items. Such items create significant earnings volatility. We believe Core FFO provides a meaningful measure of our operating performance and more predictability regarding future earnings potential. Core FFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating performance to net income; therefore, it should not be compared to other REITs’ equivalent to Core FFO.
Adjusted Funds From Operations (“AFFO”): AFFO is calculated by deducting from Core FFO non-incremental capital expenditures and adding back non-cash items including non-real estate depreciation, straight lined rents and fair value lease revenue, non-cash components of interest expense and compensation expense, and by making similar adjustments for unconsolidated partnerships and joint ventures. Although AFFO may not be comparable to that of other REITs, we believe it provides a meaningful indicator of our ability to fund cash needs and to make cash distributions to equity owners. AFFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating performance to net income, as an alternative to net cash flows from operating activities or as a measure of our liquidity.
 
3

Piedmont Office Realty Trust, Inc.
Same Store Net Operating Income
Unaudited (in thousands)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	 	Twelve Months Ended	 	
 	  	12/31/2009	 	 	12/31/2008	 	 	12/31/2009	 	 	12/31/2008	 	
Real Estate Operating Income	  	$	44,229	  	 	$	50,532	  	 	$	148,367	  	 	$	204,166	  	
Add:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation	  	 	27,090	  	 	 	25,997	  	 	 	106,073	  	 	 	99,745	  	
Amortization	  	 	16,171	  	 	 	14,903	  	 	 	57,299	  	 	 	62,050	  	
Impairment loss on real estate assets	  	 	—  	  	 	 	—  	  	 	 	35,063	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core EBITDA*	  	 	87,490	  	 	 	91,432	  	 	 	346,802	  	 	 	365,961	  	
Add:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
General & administrative expenses	  	 	6,269	  	 	 	8,310	  	 	 	28,271	  	 	 	31,631	  	
Deduct:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Lease termination income	  	 	(1,981	) 	 	 	(3,746	) 	 	 	(2,763	) 	 	 	(13,273	) 	
Lease termination expense - straight line rent & FAS 141 write-offs	  	 	552	  	 	 	282	  	 	 	1,353	  	 	 	590	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core net operating income (Accrual basis)*	  	 	92,330	  	 	 	96,278	  	 	 	373,663	  	 	 	384,909	  	
Deduct:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Straight line rent adjustment	  	 	(2,588	) 	 	 	(994	) 	 	 	(2,923	) 	 	 	(1,994	) 	
FAS 141 adjustment	  	 	(1,211	) 	 	 	(874	) 	 	 	(4,934	) 	 	 	(3,225	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core net operating income (Cash basis)*	  	 	88,531	  	 	 	94,410	  	 	 	365,806	  	 	 	379,690	  	
Deduct:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Acquisitions	  	 	(131	) 	 	 	(254	) 	 	 	(815	) 	 	 	(1,061	) 	
Industrial Properties	  	 	(638	) 	 	 	(633	) 	 	 	(2,559	) 	 	 	(2,513	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Same Store NOI*	  	$	87,762	  	 	$	93,523	  	 	$	362,432	  	 	$	376,116	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Year over year change in same store NOI	  	 	 	 	 	 	 	 	 	 	-3.6	% 	 	 	 	 	
Fixed Charge Coverage Ratio (Core EBITDA/ Interest Expense)(1)	  	 	 	 	 	 	 	 	 	 	4.5	  	 	 	4.8	  	
 
(1)	Piedmont had no capitalized interest, principal amortization or preferred dividends for any of the periods presented.	
*Definitions
Core EBITDA: Core EBITDA is defined as net income before interest, taxes, depreciation and amortization and incrementally adding back any impairment losses and other extraordinary items. We do not include impairment losses in this measure because we feel these types of losses create volatility in our earnings and make it difficult to determine the earnings generated by our ongoing business. We believe Core EBITDA is a reasonable measure of our liquidity. Core EBITDA is a non-GAAP financial measure and should not be viewed as an alternative measurement of cash flows from operating activities or liquidity. Other REITs may calculate Core EBITDA differently and our calculation should not be compared to that of other REITs.
Core Net Operating Income (“Core NOI”): Core NOI is defined as income from property operations with the add-back of corporate general and administrative expense, depreciation and amortization, and casualty and impairment losses and the deduction of income associated with lease terminations. We present this measure on a cash basis which eliminates the effects of straight lined rents and fair value lease revenue. The company uses this measure to assess its operating results and believes it is important in assessing operating performance. Core NOI is a non-GAAP measure which does not have any standard meaning prescribed by GAAP and therefore may not be comparable to similar measures presented by other companies.
Same Store NOI: Same Store NOI is calculated as the Core NOI attributable to the properties owned or placed in service during the entire span of the current and prior year. Same Store NOI excludes amounts attributable to industrial properties. We present this measure on a cash basis which eliminates the effects of straight lined rents and fair value lease revenue. We believe Same Store NOI is an important measure of comparison of our stabilized properties’ operating performance. Other REITs may calculate Same Store NOI differently and our calculation should not be compared to that of other REITs.
 
4

Exhibit 99.2

Quarterly Supplemental Information
December 31, 2009

Corporate Headquarters	  	Institutional Analyst Contact	  	Investor Relations	
 	 	 	
11695 Johns Creek Parkway, Suite 350	  	Telephone: 770.418.8592	  	Telephone: 800.557.4830	
Johns Creek, GA 30097	  	research.analysts@piedmontreit.com	  	Facsimile: 770.243.8198	
Telephone: 770.418.8800	  	 	  	investor.services@piedmontreit.com	
 	  	 	  	www.piedmontreit.com	

Piedmont Office Realty Trust, Inc.
Quarterly Supplemental Information
Index

 
 	 	 	
 	  	Page	
Introduction	  	 	
Corporate Data	  	3	
Investor Information	  	4	
Financial Highlights	  	5-7	
Key Performance Indicators	  	8	
 	 	
Financials	  	 	
Consolidated Balance Sheets	  	9	
Consolidated Statements of Income	  	10	
Funds From Operations, Core Funds From Operations, and Adjusted Funds From Operations	  	11	
Same Store Net Operating Income	  	12	
Capitalization Analysis	  	13	
Total Debt Summary	  	14	
Debt Analysis	  	15	
 	 	
Operational & Portfolio Information - Office Investments	  	 	
Tenant Diversification & Credit Rating Information	  	16	
Leasing Activity	  	17	
Lease Expiration Schedule	  	18	
Annual Lease Expirations	  	19	
Capital Expenditures and Commitments	  	20	
Contractual Tenant Improvements & Leasing Commissions	  	21	
Geographic Diversification	  	22	
Industry Diversification	  	23	
 	 	
Other Investments	  	 	
Other Investments	  	24	
 	 	
Supporting Information	  	 	
Definitions	  	25-26	
Non-GAAP Reconciliations	  	27-29	
Risks, Uncertainties and Limitations	  	30	
Please refer to page 30 for a discussion of important risks related to the business of Piedmont Office Realty Trust, as well as an investment in its securities, including risks that could cause actual results and events to differ materially from results and events referred to in the forward-looking information. Considering these risks, uncertainties, assumptions, and limitations, the forward-looking events contained in this quarterly supplemental information might not occur.

Piedmont Office Realty Trust, Inc.
Corporate Data

Piedmont Office Realty Trust, Inc. (NYSE: PDM) is a fully integrated, self-administered and self-managed real estate investment trust (“REIT”) specializing in the acquisition, ownership, management, development and disposition of primarily high-quality Class A office buildings located in major U.S. office markets and leased primarily to high-credit-quality tenants. Since its first acquisition in March 1998, the Company has acquired over $5.5 billion of office and industrial properties (inclusive of joint ventures). Rated as an investment-grade company by Standard & Poor’s and Moody’s, Piedmont has maintained a low-leverage strategy while acquiring its properties. Over 80% of our Annualized Lease Revenue (“ALR”) (1)  is derived from our office properties located within the ten largest U.S. office markets, including premier office markets such as Chicago, Washington, D.C., the New York metropolitan area, Boston and greater Los Angeles.
This data supplements the information provided in our reports filed with the Securities and Exchange Commission.

 	  	As of
December 31, 2009	 	 	Modified
December 31, 2009  (4)	 	
 	 	 	
Number of properties (2)	  	 	73	  	 	 	73	  	
 	 	 	
Square footage (in ‘000s) (2)	  	 	20,229	  	 	 	20,229	  	
 	 	 	
Occupancy (3)	  	 	90.1	% 	 	 	90.1	% 	
 	 	 	
Capitalization (in ‘000s):	  	 	 	 	 	 	 	 	
 	 	 	
Total debt	  	$	1,516,525	  	 	$	1,516,525	  	
 	 	 	
Equity market capitalization (4)	  	$	N/A	  	 	$	2,661,860	  	
 	 	 	
Total market capitalization (4)	  	$	N/A	  	 	$	4,178,385	  	
 	 	 	
Debt / Total market capitalization (4)	  	 	N/A	  	 	 	36.3	% 	
 	 	 	
Common stock data	  	 	 	 	 	 	 	 	
 	 	 	
Closing price of Class A common stock at period end (4)	  	$	N/A	  	 	$	16.75	  	
 	 	 	
Weighted average fully diluted shares outstanding (in thousands) (5) (6)	  	 	158,581	  	 	 	158,581	  	
 	 	 	
Shares of common stock issued and outstanding (6)	  	 	158,917	  	 	 	158,917	  	
 	 	 	
Rating / outlook	  	 	 	 	 	 	 	 	
Standard & Poor’s	  	 	BBB / Stable	  	 	 	 	 	
Moody’s	  	 	Baa3 / Positive	  	 	 	 	 	
 	 	 	
Number of employees	  	 	107	  	 	 	107	  	
 
(1)	The definition for Annualized Lease Revenue can be found on page 25.	
(2)	Our office portfolio currently consists of 73 properties (exclusive of our equity interests in eight properties owned through unconsolidated joint ventures and our two industrial properties).	
(3)	Calculated as leased square footage on December 31, 2009 divided by rentable square footage, expressed as a percentage.	
(4)	Our Class A common stock was listed on the New York Stock Exchange on February 10, 2010; there is no market data as of December 31, 2009. The price used for market capitalization in the “Modified December 31, 2009” column is the closing price of our Class A common stock on February 26, 2010, the last trading day of the month in which our stock initially listed on the New York Stock Exchange. Our Class B common stock is not listed on a national securities exchange and there is no established market for such shares. We have used the closing price of the Class A common stock on February 26, 2010 for the purposes of the calculations regarding market capitalization herein.	
(5)	For the year ended December 31, 2009.	
(6)	For the purposes of this presentation, all share data has been adjusted to reflect the recapitalization of our stock described on page 7, which became effective January 22, 2010. The subsequent issuance of additional shares in our underwritten public offering is not presented herein.	
 
3

Piedmont Office Realty Trust, Inc.
Investor Information

Corporate
 
11695 Johns Creek Blvd, Suite 350, Johns Creek, Georgia 30097
770.418.8800
www.piedmontreit.com
Executive and Senior Management

 	 	 	 	 	
Donald A. Miller, CFA	 	Robert E. Bowers	 	Laura P. Moon	
Chief Executive Officer, President and Director	 	Chief Financial Officer, Executive Vice President, Secretary, and Treasurer	 	Chief Accounting Officer and Senior Vice President	
 	 	 	
Raymond L. Owens	 	Carroll A. Reddic, IV	 	 	
Executive Vice President - Capital Markets	 	Executive Vice President - Real Estate Operations, Assistant Secretary	 	 	
Board of Directors

 	 	 	 	 	
W. Wayne Woody	 	Donald A. Miller, CFA	 	Frank C. McDowell	
Director and Chairman of the Board of Directors	 	Chief Executive Officer, President and Director	 	Director and Vice Chairman of the Board of Directors	
 	 	 	
Wesley E. Cantrell	 	Michael R. Buchanan	 	Donald S. Moss	
Director and Chairman of Governance Committee	 	Director and Chairman of Capital Committee	 	Director and Chairman of Compensation Committee	
 	 	 	
Jeffery L. Swope	 	 	 	William H. Keogler, Jr.	
Director	 	 	 	Director	

Transfer Agent	 	Corporate Counsel	
 	 	
Boston Financial Data Services	 	King & Spalding	
2000 Crown Colony Drive	 	1180 Peachtree Street, NE	
Quincy, Massachusetts 02169	 	Atlanta, GA 30309	
Phone: 888.772.2337	 	Phone: 404.572.4600	
 
4

Piedmont Office Realty Trust, Inc.
Financial Highlights
As of December 31, 2009

Financial Results (1)
 
 	•	 	Funds from operations (FFO) for the quarter ended December 31, 2009 was $69.5M or $.44 per share (diluted) compared to $72.8M, or $.46 per share (diluted), for the same quarter in 2008. FFO for the twelve months ended December 31, 2009 was $239.3M or $1.51 per share (diluted), compared to $294.9M, or $1.85 per share (diluted), for the same period in 2008. The decrease in FFO from 2008 to 2009 was primarily due to the recognition of impairment charges of approximately $37.6M in the third quarter of 2009 and the recognition of approximately $13.3M of lease termination income in 2008 compared to approximately $2.8M in 2009.	
 
 	•	 	Core funds from operations (Core FFO) for the quarter ended December 31, 2009 was $69.5M or $.44 per share (diluted) compared to $72.8M, or $.46 per share (diluted), for the same quarter in 2008. Core FFO for the twelve months ended December 31, 2009 was $276.9M or $1.75 per share (diluted), compared to $297.0M, or $1.86 per share (diluted), for the same period in 2008. The decrease in Core FFO from 2008 to 2009 was primarily due to the recognition of approximately $13.3M of lease termination income in 2008 compared to approximately $2.8M in 2009.	
 
 	•	 	Adjusted funds from operations (AFFO) for the quarter ended December 31, 2009 was $47.7M or $.30 per share (diluted) compared to $55.6M, or $.35 per share (diluted), for the same quarter in 2008. AFFO for the twelve months ended December 31, 2009 was $227.3M or $1.43 per share (diluted), compared to $253.6M, or $1.59 per share (diluted), for the same period in 2008. The decrease in AFFO from 2008 to 2009 was primarily due to the recognition of approximately $13.3M of lease termination income in 2008 compared to $2.8M in 2009.	
 
 	•	 	During the quarter ended December 31, 2009, the company paid to stockholders a dividend in the amount of $0.315 per share for all classes of common stock. The Company’s dividend payout percentage for the quarter ended December 31, 2009 was 71.6% of Core FFO and 104.2% of AFFO. The Company’s dividend payout percentage for the year ended December 31, 2009 was 71.8% of Core FFO and 87.5% of AFFO.	
Operations
 
 	•	 	Our portfolio was 90.1% occupied as of December 31, 2009 as compared to 90.1% and 91.7% at September 30, 2009 and December 31, 2008, respectively.	
 
 	•	 	The weighted average remaining lease term of our portfolio was 5.9 years(2) as of December 31, 2009 as compared to 5.3 years and 5.2 years at September 30, 2009 and December 31, 2008, respectively.	
 
 	•	 	During the twelve months ended December 31, 2009, we executed renewal leases for 1.6 million square feet and new tenant leases for 700.3 thousand square feet, with an average committed capital cost of $2.10 and $5.59 per square foot per year of lease term, respectively. In total, during that time period leases were signed for 2.3 million square feet, with an average committed capital cost of $3.41 per square foot per year of lease term. During the year ended December 31, 2009, we retained tenants for 78% of the square footage associated with expiring leases.	
 
(1)	FFO, Core FFO and AFFO are supplemental non-GAAP financial measures. See pages 25-26 for definitions of non-GAAP financial measures. See pages 11 and 28 for reconciliations of FFO, Core FFO and AFFO to Net Income.	
(2)	Remaining lease term (after taking into account leases which had been executed but not commenced as of December 31, 2009) is weighted based on Annualized Lease Revenue, as defined on page 25.	
 
5

Piedmont Office Realty Trust, Inc.
Financial Highlights
As of December 31, 2009

 
 
 	•	 	During the three months ended December 31, 2009, we executed seven leases greater than 20,000 SF. Please see information on those leases in the following chart.	

Tenant Name	  	Property	  	Property Location	  	Square Feet Leased	  	Expiration Year	
New York State	  	60 Broad Street	  	New York, NY	  	480,708	  	2019	
City of New York	  	60 Broad Street	  	New York, NY	  	313,022	  	2020	
Grand Canyon Education	  	Desert Canyon 300	  	Phoenix, AZ	  	103,671	  	2021	
Continental Casualty Company	  	Fairway Center II	  	Brea, CA	  	57,668	  	2020	
International Republican Institute	  	1225 Eye Street	  	Washington, D.C.	  	34,257	  	2017	
Dontech II Partnership	  	Aon Center	  	Chicago, IL	  	34,126	  	2013	
Schofield Media Group, LLC	  	Aon Center	  	Chicago, IL	  	33,431	  	2013	
Leasing Update
 
 	•	 	During 2010 and 2011, five leases are scheduled to expire that contribute greater than 1% of Annualized Lease Revenue. Information regarding the leasing status of the spaces associated with those leases is as follows:	

Tenant Name	  	Property	  	Property Location	  	Square
Footage	  	Expiration (1)	  	Leasing Status	
Citicorp	  	111 Sylvan Avenue	  	Englewood Cliffs, NJ	  	409,604	  	Q4 2010	  	In discussions with the current tenant for renewal of a portion of the space leased.	
State Street Bank	  	1200 Crown Colony Drive	  	Quincy, MA	  	234,668	  	Q1 2011	  	In discussions with the current tenant for a renewal of the entire space leased by the tenant.	
U.S. Government,
Comptroller of
the Currency	  	One Independence Square	  	Washington, D.C.	  	322,984	  	Q2 2011	  	In discussions with the current tenant for a renewal of the entire space leased by the tenant.	
Zurich American
Insurance
Company	  	Windy Point II	  	Schaumburg, IL	  	300,034	  	Q3 2011	  	Space has been substantially sublet by the tenant. In discussions with sublessees for direct leases on a portion of the space.	
Kirkland & Ellis	  	Aon Center	  	Chicago, IL	  	331,887	  	Q4 2011	  	Kirkland & Ellis is vacating; 260,641 SF of the space associated with their lease has been relet to KPMG.	
 
(1)	The lease expiration date presented is that of the majority of the space leased to the tenant at the building.	
 
6

Piedmont Office Realty Trust, Inc.
Financial Highlights
As of December 31, 2009

 
Financing and Capital Activity
 
 	•	 	As of December 31, 2009, our ratio of debt to total market capitalization was 36.3% (based upon the closing price of our Class A common stock of $16.75 per share on February 26, 2010), our ratio of debt to gross real estate assets was 33.1%, and our ratio of debt to total gross assets was 29.1%.	
 
 	•	 	During the fourth quarter of 2009, the Company did not acquire or sell any properties.	
Subsequent Events
 
 	•	 	On January 22, 2010, we filed an amendment to our charter to effect a recapitalization of our common stock as described further in our SEC filings. Upon the effectiveness of the recapitalization, each share of our outstanding common stock converted automatically into: (a) 1/12th of a share of our Class A common stock; plus (b) 1/12th of a share of our Class B-1 common stock; plus (c) 1/12th of a share of our Class B-2 common stock; plus (d) 1/12th of a share of our Class B-3 common stock. The recapitalization had the effect of a one-for-three reverse stock split. Per share information in this report is restated to reflect this recapitalization and historical information has been adjusted to provide comparable analysis.	
 
 	•	 	Our Class A common stock initially listed on the New York Stock Exchange on February 10, 2010. On February 16, 2010, we issued approximately 12 million Class A common shares in an underwritten public offering. The shares were issued at a public offering price of $14.50 per share. Net proceeds (after underwriters’ discount but before offering costs) of approximately $161.8 million were used to pay down our $500M revolving credit facility and for general corporate purposes.	
 
 	•	 	On February 17, 2010, the board of directors terminated the share redemption plan and the dividend reinvestment plan.	
Guidance for 2010
 
 	•	 	The following financial guidance for full-year 2010 is based on management’s expectations at this time:	

 	  	Low	  	 	  	High	
Net Income	  	$	117	  	-	  	124 million	
Add: Depreciation & Amortization	  	$	152	  	-	  	154 million	
Funds from Operations	  	$	269	  	-	  	278 million	
Funds from Operations per diluted share	  	$	1.56	  	-	  	1.62	
 
7

Piedmont Office Realty Trust, Inc.
Key Performance Indicators
Unaudited (in thousands)

This section includes non-GAAP financial measures, including, but not limited to, Core Earnings Before Interest Taxes Depreciation & Amortization (Core EBITDA), Funds from Operations (FFO), Core Funds from Operations (Core FFO) Adjusted Funds from Operations (AFFO), Same Store NOI, and NOI from Unconsolidated Joint Ventures. Definitions of these non-GAAP measures are provided on pages 25-26 and reconciliations are provided on pages 27-29.

 	  	Three Months Ended	 	 	Twelve Months Ended	 	
Selected Operating Data	  	12/31/2009	 	 	9/30/2009	 	 	6/30/2009	 	 	3/31/2009	 	 	12/31/2009	 	 	12/31/2008	 	
Percent leased (1)	  	 	90.1	% 	 	 	90.1	% 	 	 	90.1	% 	 	 	91.1	% 	 	 	90.1	% 	 	 	91.7	% 	
Rental income	  	$	112,000	  	 	$	112,874	  	 	$	111,994	  	 	$	112,946	  	 	$	449,814	  	 	$	455,183	  	
Total revenues	  	$	151,017	  	 	$	150,540	  	 	$	149,579	  	 	$	153,748	  	 	$	604,884	  	 	$	621,965	  	
Total real estate operating expense (2)	  	$	106,788	  	 	$	139,166	  	 	$	103,990	  	 	$	106,573	  	 	$	456,517	  	 	$	417,799	  	
Lease termination income (3)	  	$	1,981	  	 	$	0	  	 	$	782	  	 	$	0	  	 	$	2,763	  	 	$	13,273	  	
Impairment losses on real estate assets  (4)	  	$	0	  	 	$	37,633	  	 	$	0	  	 	$	0	  	 	$	37,633	  	 	$	2,088	  	
Same Store NOI (5)	  	$	87,762	  	 	$	90,278	  	 	$	90,084	  	 	$	94,308	(6) 	 	$	362,432	  	 	$	376,116	  	
NOI from unconsolidated joint ventures	  	$	1,155	  	 	$	1,170	  	 	$	1,276	  	 	$	1,192	  	 	$	4,793	  	 	$	4,927	  	
Core EBITDA (5)	  	$	87,490	  	 	$	87,221	  	 	$	85,845	  	 	$	86,246	  	 	$	346,802	  	 	$	365,961	  	
Core FFO	  	$	69,484	  	 	$	70,471	  	 	$	68,546	  	 	$	68,418	  	 	$	276,919	  	 	$	297,018	  	
Core FFO per share - diluted	  	$	0.44	  	 	$	0.45	  	 	$	0.43	  	 	$	0.43	  	 	$	1.75	  	 	$	1.86	  	
AFFO (5)	  	$	47,709	  	 	$	60,756	  	 	$	59,303	  	 	$	59,577	  	 	$	227,345	  	 	$	253,649	  	
AFFO per share - diluted	  	$	0.30	  	 	$	0.39	  	 	$	0.37	  	 	$	0.37	  	 	$	1.43	  	 	$	1.59	  	
Dividends per share	  	$	0.315	  	 	$	0.315	  	 	$	0.315	  	 	$	0.315	  	 	$	1.260	  	 	$	1.760	  	
 	 	 	 	 	 	 	
Selected Balance Sheet Data	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total real estate assets	  	$	3,763,527	  	 	$	3,785,458	  	 	$	3,850,625	  	 	$	3,878,874	  	 	$	3,763,527	  	 	$	3,908,070	  	
Total gross real estate assets	  	$	4,575,638	  	 	$	4,601,835	  	 	$	4,636,750	  	 	$	4,631,104	  	 	$	4,575,638	  	 	$	4,628,007	  	
Total assets	  	$	4,395,345	  	 	$	4,431,851	  	 	$	4,494,484	  	 	$	4,542,347	  	 	$	4,395,345	  	 	$	4,557,330	  	
Net debt (7)	  	$	1,506,521	  	 	$	1,515,186	  	 	$	1,542,996	  	 	$	1,483,120	  	 	$	1,506,521	  	 	$	1,503,292	  	
Total liabilities	  	$	1,713,299	  	 	$	1,743,415	  	 	$	1,761,748	  	 	$	1,722,981	  	 	$	1,713,299	  	 	$	1,742,109	  	
 	 	 	 	 	 	 	
Ratios	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core EBITDA margin	  	 	57.9	% 	 	 	57.9	% 	 	 	57.4	% 	 	 	56.1	% 	 	 	57.3	% 	 	 	58.8	% 	
Fixed charge coverage ratio(8)	  	 	4.5	x 	 	 	4.5	x 	 	 	4.4	x 	 	 	4.5	x 	 	 	4.5	x 	 	 	4.8	x 	
Core FFO payout percentage (9)	  	 	71.6	% 	 	 	70.3	% 	 	 	72.1	% 	 	 	73.4	% 	 	 	71.8	% 	 	 	93.9	% 	
AFFO payout percentage (10)	  	 	104.2	% 	 	 	81.6	% 	 	 	83.3	% 	 	 	84.3	% 	 	 	87.5	% 	 	 	109.9	% 	
Net debt to core EBITDA (11)	  	 	4.3	x 	 	 	4.3	x 	 	 	4.5	x 	 	 	4.3	x 	 	 	4.3	x 	 	 	4.1	x 	
 
(1)	Percent leased represents 73 office properties and excludes industrial and unconsolidated joint venture properties. Percent leased dropped in the second quarter of 2009 primarily due to Countrywide vacating 133K square feet at the end of their lease at our River Corporate Center building in Phoenix, AZ.	
(2)	Total real estate operating expense is higher in the third quarter of 2009 primarily due to $35.1 million in impairment charges recognized on three wholly-owned assets.	
(3)	Lease termination income is included in ‘other rental income’ on the income statement.	
(4)	Impairment losses include both wholly-owned and unconsolidated joint ventures. Impairment losses of $35.1 million related to our wholly-owned assets are included in total real estate operating expense for the three months ended September 30, 2009.	
(5)	Same Store NOI, Core EBITDA and AFFO exclude impairments on real estate assets.	
(6)	The higher Same Store NOI during the first quarter of 2009 is primarily the result of the contractual rent payment schedule associated with the net lease of our 1901 Market Street building in Philadelphia, PA, which results in larger cash receipts during the first quarter of each year.	
(7)	Net debt is calculated as total debt minus cash and cash equivalents.	
(8)	Fixed charge coverage is calculated as Core EBITDA divided by interest expense, principal amortization, capitalized interest and preferred dividends. We had no capitalized interest, principal amortization or preferred dividends during the periods ended December 31, 2009.	
 
(9)	Core FFO payout percentage is calculated as current period dividends divided by Core FFO.	
(10)	AFFO payout percentage is calculated as current period dividends divided by AFFO.	
(11)	Quarterly Core EBITDA is annualized for the purposes of this calculation.	
 
8

Piedmont Office Realty Trust, Inc.
Consolidated Balance Sheets
Unaudited (in thousands)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	December 31,
2009	 	 	September 30,
2009	 	 	June 30,
2009	 	 	March 31,
2009	 	 	December 31,
2008	 	
Assets:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Real estate, at cost:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Land assets	  	$	651,876	  	 	$	651,876	  	 	$	659,637	  	 	$	659,637	  	 	$	659,637	  	
Buildings and improvements	  	 	3,663,391	  	 	 	3,654,389	  	 	 	3,676,425	  	 	 	3,666,181	  	 	 	3,663,597	  	
Buildings and improvements, accumulated depreciation	  	 	(665,068	) 	 	 	(641,960	) 	 	 	(615,665	) 	 	 	(590,016	) 	 	 	(564,940	) 	
Intangible lease asset	  	 	243,312	  	 	 	280,087	  	 	 	284,292	  	 	 	284,292	  	 	 	285,514	  	
Intangible lease asset, accumulated amortization	  	 	(147,043	) 	 	 	(174,417	) 	 	 	(170,460	) 	 	 	(162,214	) 	 	 	(154,997	) 	
Construction in progress	  	 	17,059	  	 	 	15,483	  	 	 	16,396	  	 	 	20,994	  	 	 	19,259	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total real estate assets	  	 	3,763,527	  	 	 	3,785,458	  	 	 	3,850,625	  	 	 	3,878,874	  	 	 	3,908,070	  	
Investment in unconsolidated joint ventures	  	 	43,940	  	 	 	44,350	  	 	 	47,408	  	 	 	47,795	  	 	 	48,240	  	
Cash and cash equivalents	  	 	10,004	  	 	 	17,339	  	 	 	17,529	  	 	 	31,905	  	 	 	20,333	  	
Tenant receivables, net of allowance for doubtful accounts	  	 	33,071	  	 	 	38,819	  	 	 	32,105	  	 	 	38,331	  	 	 	35,589	  	
Straight line rent receivable	  	 	95,371	  	 	 	92,858	  	 	 	91,086	  	 	 	88,960	  	 	 	90,818	  	
Notes receivable	  	 	58,739	  	 	 	58,523	  	 	 	57,990	  	 	 	57,172	  	 	 	46,914	  	
Due from unconsolidated joint ventures	  	 	1,083	  	 	 	1,072	  	 	 	1,198	  	 	 	1,109	  	 	 	1,067	  	
Prepaid expenses and other assets	  	 	21,456	  	 	 	22,220	  	 	 	20,448	  	 	 	14,827	  	 	 	21,788	  	
Goodwill	  	 	180,097	  	 	 	180,097	  	 	 	180,097	  	 	 	180,097	  	 	 	180,390	  	
Deferred financing costs, less accumulated amortization	  	 	7,205	  	 	 	7,901	  	 	 	8,547	  	 	 	9,210	  	 	 	9,897	  	
Deferred lease costs, less accumulated amortization	  	 	180,852	  	 	 	183,214	  	 	 	187,451	  	 	 	194,067	  	 	 	194,224	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total assets	  	$	4,395,345	  	 	$	4,431,851	  	 	$	4,494,484	  	 	$	4,542,347	  	 	$	4,557,330	  	

Liabilities:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Lines of credit and notes payable	  	$	1,516,525	  	 	$	1,532,525	  	 	$	1,560,525	  	 	$	1,515,025	  	 	$	1,523,625	  	
Accounts payable, accrued expenses, and accrued capital expenditures	  	 	97,747	  	 	 	111,345	  	 	 	98,803	  	 	 	97,571	  	 	 	111,411	  	
Deferred income	  	 	34,506	  	 	 	29,788	  	 	 	28,412	  	 	 	32,085	  	 	 	24,920	  	
Intangible lease liabilities, less accumulated amortization	  	 	60,655	  	 	 	64,082	  	 	 	67,143	  	 	 	70,169	  	 	 	73,196	  	
Interest rate swap	  	 	3,866	  	 	 	5,675	  	 	 	6,865	  	 	 	8,131	  	 	 	8,957	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities	  	 	1,713,299	  	 	 	1,743,415	  	 	 	1,761,748	  	 	 	1,722,981	  	 	 	1,742,109	  	
 	 	 	 	 	 	
Redeemable common stock(1)	  	 	75,164	  	 	 	61,716	  	 	 	52,230	  	 	 	136,926	  	 	 	112,927	  	
 	 	 	 	 	 	
Shareholders’ equity(2):	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Class A common stock	  	 	397	  	 	 	395	  	 	 	394	  	 	 	402	  	 	 	399	  	
Class B-1 common stock	  	 	397	  	 	 	395	  	 	 	394	  	 	 	402	  	 	 	399	  	
Class B-2 common stock	  	 	397	  	 	 	396	  	 	 	394	  	 	 	402	  	 	 	399	  	
Class B-3 common stock	  	 	398	  	 	 	396	  	 	 	395	  	 	 	402	  	 	 	399	  	
Additional paid in capital	  	 	3,477,168	  	 	 	3,461,698	  	 	 	3,449,489	  	 	 	3,516,053	  	 	 	3,491,654	  	
Cumulative distributions in excess of earnings	  	 	(798,561	) 	 	 	(774,774	) 	 	 	(716,949	) 	 	 	(695,536	) 	 	 	(674,326	) 	
Redeemable common stock	  	 	(75,164	) 	 	 	(61,716	) 	 	 	(52,230	) 	 	 	(136,926	) 	 	 	(112,927	) 	
Other comprehensive loss	  	 	(3,866	) 	 	 	(5,675	) 	 	 	(6,865	) 	 	 	(8,131	) 	 	 	(8,957	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Piedmont stockholders’ equity	  	 	2,601,166	  	 	 	2,621,115	  	 	 	2,675,022	  	 	 	2,677,068	  	 	 	2,697,040	  	
Non-controlling interest	  	 	5,716	  	 	 	5,605	  	 	 	5,484	  	 	 	5,372	  	 	 	5,254	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total stockholders’ equity	  	 	2,606,882	  	 	 	2,626,720	  	 	 	2,680,506	  	 	 	2,682,440	  	 	 	2,702,294	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities, redeemable common stock and stockholders’ equity	  	$	4,395,345	  	 	$	4,431,851	  	 	$	4,494,484	  	 	$	4,542,347	  	 	$	4,557,330	  	

All classes of common stock outstanding at end of period  (2)	  	 	158,917	  	 	 	158,215	  	 	 	157,668	  	 	 	160,760	  	 	 	159,634	  	
 
(1)	On November 24, 2009, our board of directors suspended the share redemption plan. On February 17, 2010, the board of directors terminated the share redemption plan as the need to provide interim liquidity through such a program was no longer necessary upon listing Piedmont’s Class A common stock on the NYSE. This item, therefore, will not be presented on the balance sheet in future periods.	
(2)	On January 22, 2010, we filed an amendment to our charter to effect a recapitalization of our common stock as described further in our SEC filings. Upon the effectiveness of the recapitalization, each share of our outstanding common stock converted automatically into : (a) 1/12th of a share of our Class A common stock; plus (b) 1/12th of a share of our Class B-1 common stock; plus (c) 1/12th of a share of our Class B-2 common stock; plus (d) 1/12th of a share of our Class B-3 common stock. The recapitalization had the effect of a one-for-three reverse stock split. Per share information in this report is restated to reflect this recapitalization and historical information has been adjusted to provide comparable analysis.	
 
9

Piedmont Office Realty Trust, Inc.
Consolidated Statements of Income
Unaudited (in thousands)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	 	Twelve Months Ended	 	
 	  	12/31/2009	 	 	12/31/2008	 	 	Change	 	 	Change	 	 	12/31/2009	 	 	12/31/2008	 	 	Change	 	 	Change	 	
Revenues:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental income	  	$	112,000	  	 	$	113,387	  	 	$	(1,387	) 	 	-1.2	% 	 	$	449,814	  	 	$	455,183	  	 	$	(5,369	) 	 	-1.2	% 	
Tenant reimbursements	  	 	36,108	  	 	 	37,420	  	 	 	(1,312	) 	 	-3.5	% 	 	 	149,196	  	 	 	150,264	  	 	 	(1,068	) 	 	-0.7	% 	
Property management fee revenue	  	 	928	  	 	 	863	  	 	 	65	  	 	7.5	% 	 	 	3,111	  	 	 	3,245	  	 	 	(134	) 	 	-4.1	% 	
Other rental income	  	 	1,981	  	 	 	3,746	  	 	 	(1,765	) 	 	-47.1	% 	 	 	2,763	  	 	 	13,273	  	 	 	(10,510	) 	 	-79.2	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	151,017	  	 	 	155,416	  	 	 	(4,399	) 	 	-2.8	% 	 	 	604,884	  	 	 	621,965	  	 	 	(17,081	) 	 	-2.7	% 	
 	 	 	 	 	 	 	 	 	
Real estate operating expenses:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property operating costs	  	 	56,768	  	 	 	55,141	  	 	 	(1,627	) 	 	-3.0	% 	 	 	227,867	  	 	 	222,351	  	 	 	(5,516	) 	 	-2.5	% 	
Asset and property management fees	  	 	490	  	 	 	533	  	 	 	43	  	 	8.1	% 	 	 	1,944	  	 	 	2,022	  	 	 	78	  	 	3.9	% 	
Depreciation	  	 	27,090	  	 	 	25,997	  	 	 	(1,093	) 	 	-4.2	% 	 	 	106,073	  	 	 	99,745	  	 	 	(6,328	) 	 	-6.3	% 	
Amortization	  	 	16,171	  	 	 	14,903	  	 	 	(1,268	) 	 	-8.5	% 	 	 	57,299	  	 	 	62,050	  	 	 	4,751	  	 	7.7	% 	
Impairment loss on real estate assets	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	0.0	% 	 	 	35,063	  	 	 	—  	  	 	 	(35,063	) 	 	-100.0	% 	
General and administrative	  	 	6,269	  	 	 	8,310	  	 	 	2,041	  	 	24.6	% 	 	 	28,271	  	 	 	31,631	  	 	 	3,360	  	 	10.6	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total real estate operating expenses	  	 	106,788	  	 	 	104,884	  	 	 	(1,904	) 	 	-1.8	% 	 	 	456,517	  	 	 	417,799	  	 	 	(38,718	) 	 	-9.3	% 	

Real estate operating income	  	 	44,229	  	 	 	50,532	  	 	 	(6,303	) 	 	-12.5	% 	 	 	148,367	  	 	 	204,166	  	 	 	(55,799	) 	 	-27.3	% 	
 	 	 	 	 	 	 	 	 	
Other income (expense):	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest expense	  	 	(19,488	) 	 	 	(20,181	) 	 	 	693	  	 	3.4	% 	 	 	(77,743	) 	 	 	(75,988	) 	 	 	(1,755	) 	 	-2.3	% 	
Interest and other income	  	 	652	  	 	 	741	  	 	 	(89	) 	 	-12.0	% 	 	 	4,450	  	 	 	3,416	  	 	 	1,034	  	 	30.3	% 	
Equity in income of unconsolidated joint ventures	  	 	672	  	 	 	619	  	 	 	53	  	 	8.6	% 	 	 	104	  	 	 	256	  	 	 	(152	) 	 	-59.4	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total other income (expense)	  	 	(18,164	) 	 	 	(18,821	) 	 	 	657	  	 	3.5	% 	 	 	(73,189	) 	 	 	(72,316	) 	 	 	(873	) 	 	-1.2	% 	

Income from continuing operations	  	 	26,065	  	 	 	31,711	  	 	 	(5,646	) 	 	-17.8	% 	 	 	75,178	  	 	 	131,850	  	 	 	(56,672	) 	 	-43.0	% 	
 	 	 	 	 	 	 	 	 	
Operating income	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	0.0	% 	 	 	—  	  	 	 	10	  	 	 	(10	) 	 	-100.0	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total discontinued operations	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	0.0	% 	 	 	—  	  	 	 	10	  	 	 	(10	) 	 	-100.0	% 	

Net income	  	 	26,065	  	 	 	31,711	  	 	 	(5,646	) 	 	-17.8	% 	 	 	75,178	  	 	 	131,860	  	 	 	(56,682	) 	 	-43.0	% 	
 	 	 	 	 	 	 	 	 	
Less: Net income attributable to noncontrolling interest	  	 	(119	) 	 	 	(116	) 	 	 	(3	) 	 	-2.6	% 	 	 	(478	) 	 	 	(546	) 	 	 	68	  	 	12.5	% 	

Net income attributable to Piedmont	  	$	25,946	  	 	$	31,595	  	 	$	(5,649	) 	 	-17.9	% 	 	$	74,700	  	 	$	131,314	  	 	$	(56,614	) 	 	-43.1	% 	

Weighted average common shares outstanding - diluted	  	 	158,393	  	 	 	158,773	  	 	 	 	 	 	 	 	 	 	158,581	  	 	 	159,722	  	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	
Net income per share available to common stockholders - basic and diluted	  	$	0.16	  	 	$	0.20	  	 	 	 	 	 	 	 	 	$	0.47	  	 	$	0.82	  	 	 	 	 	 	 	 	

10

Piedmont Office Realty Trust, Inc.
Funds From Operations, Core Funds From Operations and Adjusted Funds From Operations
Unaudited (in thousands except for per share data)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	 	Twelve Months Ended	 	
 	  	12/31/2009	 	 	12/31/2008	 	 	12/31/2007	 	 	12/31/2009	 	 	12/31/2008	 	 	12/31/2007	 	
 	 	 	 	 	 	 	
Net income attributable to Piedmont	  	$	25,946	  	 	$	31,595	  	 	$	26,128	  	 	$	74,700	  	 	$	131,314	  	 	$	133,610	  	
 	 	 	 	 	 	 	
Add:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation (1)	  	 	27,264	  	 	 	26,209	  	 	 	24,189	  	 	 	106,878	  	 	 	100,849	  	 	 	96,432	  	
Amortization (1)	  	 	16,274	  	 	 	15,011	  	 	 	24,162	  	 	 	57,708	  	 	 	62,767	  	 	 	77,232	  	
Deduct:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gain on sale of property (1)	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(21,809	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Funds from operations	  	 	69,484	  	 	 	72,815	  	 	 	74,479	  	 	 	239,286	  	 	 	294,930	  	 	 	285,465	  	
 	 	 	 	 	 	 	
Add:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Impairment loss on real estate assets (1)	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	37,633	  	 	 	2,088	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core funds from operations	  	 	69,484	  	 	 	72,815	  	 	 	74,479	  	 	 	276,919	  	 	 	297,018	  	 	 	285,465	  	
 	 	 	 	 	 	 	
Add:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation on non real estate assets	  	 	171	  	 	 	147	  	 	 	33	  	 	 	632	  	 	 	379	  	 	 	89	  	
Non-cash compensation expense	  	 	671	  	 	 	778	  	 	 	757	  	 	 	3,178	  	 	 	3,555	  	 	 	3,688	  	
Loss on extinguishment of debt	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	164	  	
Amortization related to notes payable	  	 	696	  	 	 	697	  	 	 	242	  	 	 	2,786	  	 	 	1,859	  	 	 	416	  	
Deduct:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Straight line effects of lease revenue (1)	  	 	(1,618	) 	 	 	(661	) 	 	 	(2,872	) 	 	 	(997	) 	 	 	(1,216	) 	 	 	(7,817	) 	
Amortization of lease-related intangibles (1)	  	 	(1,663	) 	 	 	(884	) 	 	 	2,059	  	 	 	(5,399	) 	 	 	(3,214	) 	 	 	495	  	
Amortization related to notes receivable	  	 	(334	) 	 	 	(268	) 	 	 	—  	  	 	 	(2,278	) 	 	 	(840	) 	 	 	—  	  	
Non-incremental capital expenditures(2)	  	 	(19,698	) 	 	 	(16,990	) 	 	 	(16,366	) 	 	 	(47,496	) 	 	 	(43,892	) 	 	 	(47,728	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted funds from operations	  	$	47,709	  	 	$	55,634	  	 	$	58,332	  	 	$	227,345	  	 	$	253,649	  	 	$	234,772	  	

Weighted average common shares outstanding - diluted	  	 	158,393	  	 	 	158,773	  	 	 	164,164	  	 	 	158,581	  	 	 	159,722	  	 	 	160,756	  	
 	 	 	 	 	 	 	
Funds from operations per share (diluted)	  	$	0.44	  	 	$	0.46	  	 	$	0.45	  	 	$	1.51	  	 	$	1.85	  	 	$	1.78	  	
Core funds from operations per share (diluted)	  	$	0.44	  	 	$	0.46	  	 	$	0.45	  	 	$	1.75	  	 	$	1.86	  	 	$	1.78	  	
Adjusted funds from operations per share (diluted)	  	$	0.30	  	 	$	0.35	  	 	$	0.36	  	 	$	1.43	  	 	$	1.59	  	 	$	1.46	  	
 
(1)	Includes adjustments for wholly-owned properties, and for our proportionate ownership in unconsolidated joint ventures.	
(2)	Non-incremental capital expenditures are defined on page 26.	
 
11

Piedmont Office Realty Trust, Inc.
Same Store Net Operating Income
Unaudited (in thousands)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	 	Twelve Months Ended	 	
 	  	12/31/2009	 	 	12/31/2008	 	 	12/31/2007	 	 	12/31/2009	 	 	12/31/2008	 	 	12/31/2007	 	
 	 	 	 	 	 	 	
Real Estate Operating Income	  	$	44,229	  	 	$	50,532	  	 	$	41,356	  	 	$	148,367	  	 	$	204,166	  	 	$	168,522	  	
 	 	 	 	 	 	 	
Add:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation	  	 	27,090	  	 	 	25,997	  	 	 	23,856	  	 	 	106,073	  	 	 	99,745	  	 	 	94,770	  	
Amortization	  	 	16,171	  	 	 	14,903	  	 	 	23,921	  	 	 	57,299	  	 	 	62,050	  	 	 	76,102	  	
Impairment loss on real estate assets	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	35,063	  	 	 	—  	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core EBITDA	  	 	87,490	  	 	 	91,432	  	 	 	89,133	  	 	 	346,802	  	 	 	365,961	  	 	 	339,394	  	
 	 	 	 	 	 	 	
Add:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
General & administrative expenses	  	 	6,269	  	 	 	8,310	  	 	 	7,949	  	 	 	28,271	  	 	 	31,631	  	 	 	27,953	  	
Deduct:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Lease termination income	  	 	(1,981	) 	 	 	(3,746	) 	 	 	(5,328	) 	 	 	(2,763	) 	 	 	(13,273	) 	 	 	(6,757	) 	
Lease termination expense - straight line rent & FAS 141 write-offs	  	 	552	  	 	 	282	  	 	 	3,816	  	 	 	1,353	  	 	 	590	  	 	 	4,233	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core net operating income (accrual basis)	  	 	92,330	  	 	 	96,278	  	 	 	95,570	  	 	 	373,663	  	 	 	384,909	  	 	 	364,823	  	
 	 	 	 	 	 	 	
Deduct:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Straight line rent adjustment	  	 	(2,588	) 	 	 	(994	) 	 	 	(4,122	) 	 	 	(2,923	) 	 	 	(1,994	) 	 	 	(9,012	) 	
FAS 141 adjustment	  	 	(1,211	) 	 	 	(874	) 	 	 	(511	) 	 	 	(4,934	) 	 	 	(3,225	) 	 	 	(2,116	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core net operating income (cash basis)	  	 	88,531	  	 	 	94,410	  	 	 	90,937	  	 	 	365,806	  	 	 	379,690	  	 	 	353,695	  	
 	 	 	 	 	 	 	
Deduct:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Acquisitions	  	 	(131	) 	 	 	(254	) 	 	 	(272	) 	 	 	(815	) 	 	 	(1,061	) 	 	 	(881	) 	
Industrial Properties	  	 	(638	) 	 	 	(633	) 	 	 	(647	) 	 	 	(2,559	) 	 	 	(2,513	) 	 	 	(2,594	) 	

Same Store NOI	  	$	87,762	  	 	$	93,523	  	 	$	90,018	  	 	$	362,432	  	 	$	376,116	  	 	$	350,220	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Change period over period	  	 	-6.2	% 	 	 	3.9	% 	 	 	N/A	  	 	 	-3.6	% 	 	 	7.4	% 	 	 	N/A	  	
Same Store Net Operating Income
Top Seven Markets

 	  	Three Months Ended	  	Twelve Months Ended	
 	  	12/31/2009	  	12/31/2008	  	12/31/2007	  	12/31/2009	  	12/31/2008	  	12/31/2007	
 	  	$	  	%	  	$	  	%	  	$	  	%	  	$	  	%	  	$	  	%	  	$	  	%	
Chicago	  	$	19,280	  	22.0	  	$	19,503	  	20.9	  	$	20,541	  	22.8	  	$	78,876	  	21.8	  	$	80,903	  	21.5	  	$	73,721	  	21.0	
Washington, D.C.	  	 	19,213	  	21.9	  	 	18,479	  	19.8	  	 	17,220	  	19.1	  	 	75,478	  	20.8	  	 	73,427	  	19.5	  	 	70,303	  	20.1	
New York(1)	  	 	13,658	  	15.6	  	 	16,357	  	17.5	  	 	11,821	  	13.1	  	 	60,247	  	16.6	  	 	61,393	  	16.3	  	 	53,558	  	15.3	
Minneapolis	  	 	5,623	  	6.4	  	 	4,941	  	5.3	  	 	4,852	  	5.4	  	 	21,534	  	5.9	  	 	20,672	  	5.5	  	 	19,392	  	5.5	
Los Angeles	  	 	5,031	  	5.7	  	 	6,212	  	6.6	  	 	6,298	  	7.0	  	 	22,357	  	6.2	  	 	24,776	  	6.6	  	 	25,613	  	7.3	
Dallas	  	 	4,505	  	5.1	  	 	4,065	  	4.3	  	 	4,358	  	4.8	  	 	17,053	  	4.7	  	 	16,446	  	4.4	  	 	17,465	  	5.0	
Boston	  	 	3,612	  	4.1	  	 	3,798	  	4.1	  	 	4,450	  	4.9	  	 	15,036	  	4.1	  	 	17,442	  	4.6	  	 	16,965	  	4.8	
Other(2)	  	 	16,840	  	19.2	  	 	20,168	  	21.6	  	 	20,478	  	22.7	  	 	71,851	  	19.8	  	 	81,057	  	21.6	  	 	73,203	  	20.9	
 	  	 	 	  	 	  	 	 	  	 	  	 	 	  	 	  	 	 	  	 	  	 	 	  	 	  	 	 	  	 	
Total	  	$	87,762	  	100.0	  	$	93,523	  	100.0	  	$	90,018	  	100.0	  	$	362,432	  	100.0	  	$	376,116	  	100.0	  	$	350,220	  	100.0	

(1)	The increase in Same Store Net Operating Income for the three and twelve months ended December 31, 2008 as compared to the same periods in 2007 is primarily related to a five-year lease renewal with New York state at 60 Broad Street in New York, NY. The decrease in Same Store Net Operating Income for the three and twelve months ended December 31, 2009 as compared to the same periods in 2008 is primarily related to the cumulative effect of certain retroactive rent rate adjustments related to restructuring that same lease with New York state over a ten-year period.	
(2)	The decrease in Same Store Net Operating Income for Other during the fourth quarter of 2009 and the twelve months ended December 31, 2009 as compared to the previous period is primarily related to Cingular Wireless vacating 314K square feet at our Glenridge Highlands II building in Atlanta, GA, and Countrywide vacating 133K square feet at our River Corporate Center building in Phoenix, AZ.	
 
12

Piedmont Office Realty Trust, Inc.
Capitalization Analysis
Unaudited ($ and shares in thousands)

 
 	 	 	 	 	 	 	 	 	
 	  	As of
December 31, 2009	 	 	Modified
December 31, 2009	 	
Common stock price(1)	  	$	N/A	  	 	$	16.75	  	
 	 	 	
Total shares outstanding (2)	  	 	158,917	  	 	 	158,917	  	
Class A common stock	  	 	39,729	  	 	 	39,729	  	
Class B-1 common stock	  	 	39,729	  	 	 	39,729	  	
Class B-2 common stock	  	 	39,729	  	 	 	39,729	  	
Class B-3 common stock	  	 	39,729	  	 	 	39,729	  	
 	 	 	
Market value of common shares(3)	  	$	N/A	  	 	$	2,661,857	  	
 	 	 	
Total consolidated debt	  	$	1,516,525	  	 	$	1,516,525	  	
 	 	 	
Total market capitalization(1)	  	$	N/A	  	 	$	4,178,382	  	
 	 	 	
Total debt / Total market capitalization	  	 	N/A	  	 	 	36.3	% 	
 	 	 	
Total gross real estate assets	  	$	4,575,638	  	 	$	4,575,638	  	
 	 	 	
Total debt / Total gross real estate assets (4)	  	 	33.1	% 	 	 	33.1	% 	
 	 	 	
Total debt / Total gross assets (5)	  	 	29.1	% 	 	 	29.1	% 	
 
(1)	The company was not listed on a public exchange as of December 31, 2009. Our stock initially listed on the New York Stock Exchange on February 10, 2010. The common stock price of $16.75 in the “Modified December 31, 2009” column is the closing price of our Class A common stock on February 26, 2010, the last trading day of the month in which our stock initially listed on the New York Stock Exchange.	
(2)	On January 22, 2010, we filed an amendment to our charter to effect a recapitalization of our common stock as described further in our SEC filings. Upon the effectiveness of the recapitalization, each share of our outstanding common stock converted automatically into: (a)   1 / 12 th of a share of our Class A common stock; plus (b)   1 / 12 th of a share of our Class B-1 common stock; plus (c)   1 / 12 th of a share of our Class B-2 common stock; plus (d)   1 / 12  th of a share of our Class B-3 common stock. The recapitalization had the effect of a one-for-three reverse stock split. Per share information in this report is restated to reflect this recapitalization and historical information has been adjusted to provide comparable analysis.	
(3)	Market value of common shares is defined as the total number of shares of common stock outstanding multiplied by our common stock price, as further qualified in footnote (1) above.	
(4)	Total debt to total gross real estate assets ratio for the current period is defined as total debt divided by Piedmont’s gross real estate assets.	
(5)	Total debt to total gross assets ratio for the current period is defined as total debt divided by gross assets. Gross assets is defined as total assets plus accumulated depreciation for buildings and improvements and accumulated amortization for intangible lease assets.	
 
13

Piedmont Office Realty Trust, Inc.
Total Debt Summary
Unaudited ($ in thousands)

Floating & Fixed Debt

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Debt (1)	  	Amount	  	 	 	 	Weighted Average
Interest Rate	 	 	 	 	 	Weighted Average
Maturity	  	
 	
Floating	  	$	114,000	  	(2	) 	 	1.2	% 	 	(3	) 	 	32.0 months	  	 	
Fixed (4)	  	 	1,402,525	  	 	 	 	5.1	% 	 	 	 	 	53.2 months	  	 	
 	  	 	 	  	 	 	 	 	 	 	 	 	 	 	  	 	
Total	  	$	1,516,525	  	 	 	 	4.8	% 	 	 	 	 	51.6 months	  	 	

Unsecured & Secured Debt	
 	 	 	 	 	 	 	
Debt (1)	  	Amount	  	 	 	 	Weighted Average
Interest Rate	 	 	 	 	 	Weighted Average
Maturity	  	 	
Unsecured	  	$	364,000	  	 	 	 	3.8	% 	 	 	 	 	22.3 months	  	 	
Secured	  	 	1,152,525	  	 	 	 	5.2	% 	 	 	 	 	60.9 months	  	 	
 	  	 	 	  	 	 	 	 	 	 	 	 	 	 	  	 	
Total	  	$	1,516,525	  	 	 	 	4.8	% 	 	 	 	 	51.6 months	  	 	
 	  	 	 	  	 	 	 	 	 	 	 	 	 	 	  	 	
Debt Maturities

 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Maturity Year	  	Secured Debt(1)	  	Unsecured Debt(1)	 	 	Weighted Average
Interest Rate	 	 	Percentage of
Total	 	
2010	  	$	—  	  	 	—  	  	 	N/A	  	 	N/A	  	
2011	  	 	—  	  	 	250,000	 (4) (5) 	 	5.0	% 	 	16.5	% 	
2012	  	 	45,000	  	 	114,000	 (2) 	 	2.3	% 	 	10.5	% 	
2013	  	 	—  	  	 	—  	  	 	N/A	  	 	N/A	  	
2014	  	 	695,000	  	 	—  	  	 	4.9	% 	 	45.8	% 	
2015	  	 	105,000	  	 	—  	  	 	5.3	% 	 	6.9	% 	
2016	  	 	167,525	  	 	—  	  	 	5.6	% 	 	11.0	% 	
2017	  	 	140,000	  	 	—  	  	 	5.8	% 	 	9.2	% 	
 	  	 	 	  	 	 	 	 	 	 	 	 	 	
TOTAL	  	$	1,152,525	  	$	364,000	  	 	4.8	% 	 	100.0	% 	

(1)	All of Piedmont’s outstanding debt as of December 31, 2009 is interest-only debt.	
(2)	Amount represents the outstanding balance as of December 31, 2009 on the $500M Unsecured Line of Credit, which matures August 2011. Management intends to exercise the one-year extension option to extend the maturity date to August 2012. The payment of a 15 bp fee will be required to extend the term of this facility. Management intends to use the proceeds of its recent public stock offering to pay down the balance of the line of credit to zero by the end of the first quarter of 2010.	
(3)	Rate is equal to the weighted average interest on all outstanding draws as of December 31, 2009. Piedmont may select from multiple interest rate options with each draw, including the prime rate and various length LIBOR locks. All LIBOR selections are subject to an additional spread of .475% over the selected rate based on Piedmont’s current credit rating.	
(4)	The $250M Unsecured Term Loan has a stated variable rate; however, Piedmont entered into an interest rate swap which effectively fixes the interest rate of this facility at 4.97%. The $250M Unsecured Term Loan is, therefore, included in fixed debt. In January 2010, Piedmont entered into a forward interest rate swap for the extension period of the Unsecured Term Loan (July 2010 to June 2011), fixing the interest rate during the extension period at 2.36%.	
(5)	Amount represents the outstanding balance as of December 31, 2009 on the $250M Unsecured Term Loan, which may be extended, upon payment of a 25 basis point fee, to June 2011. Piedmont gave notice on January 20, 2010 of its intent to extend this facility to June 2011.	
 
14

Piedmont Office Realty Trust, Inc.
Debt Analysis
As of December 31, 2009
Unaudited

 
 	 	 	 	 	
Debt Covenant Compliance (1)	  	Required	  	Actual	
 	 	 	
Maximum Leverage Ratio	  	0.60	  	0.31	
 	 	 	
Minimum Fixed Charge Coverage Ratio (2)	  	1.50	  	4.60	
 	 	 	
Maximum Secured Indebtedness Ratio	  	0.40	  	0.24	
 	 	 	
Minimum Unencumbered Leverage Ratio	  	1.60	  	5.51	
 	 	 	
Minimum Unencumbered Interest Coverage Ratio(3)	  	1.75	  	10.46	
 	 	 	
Maximum Certain Permitted Investments	  	0.35	  	0.02	
 
(1)	Debt covenant compliance calculations relate to specific calculations detailed in our term loan and line of credit agreements.	
(2)	Defined as EBITDA for the trailing four quarters (including the company’s share of EBITDA from unconsolidated interests), less one-time or non-recurring gains or losses, less a $0.15 per square foot capital reserve, and excluding the impact of straight line rent leveling adjustments and amortization of intangibles divided by the company’s share of fixed charges, as more particularly described in the credit agreements.	
(3)	Defined as net operating income for the trailing four quarters for unencumbered assets (including the company’s share of net operating income from unconsolidated interests that are unencumbered) less a $0.15 per square foot capital reserve divided by the company’s share of interest expense associated with unsecured financings only, as more particularly described in the credit agreements.	

Other Debt Coverage Ratios	  	Three months ended
December 31, 2009	  	Year ended
December 31, 2009	
 	 	 	
Net debt / Core EBITDA	  	4.3 x	  	4.3 x	
 	 	 	
Fixed charge ratio(4)	  	4.5 x	  	4.5 x	
 	 	 	
Interest coverage ratio(5)	  	4.5 x	  	4.5 x	
 
(4)	Fixed charge coverage is calculated as Core EBITDA divided by the sum of interest expense, principal amortization, capitalized interest and preferred dividends. We had no capitalized interest, principal amortization or preferred dividends during the period ended December 31, 2009.	
(5)	Interest coverage ratio is calculated as Core EBITDA divided by the sum of interest expense and capitalized interest. We had no capitalized interest during the period ended December 31, 2009.	
 
15

Piedmont Office Realty Trust, Inc.
Tenant Diversification & Credit Rating Information
As of December 31, 2009
(in thousands)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Credit Rating (1)	  	Number of
Properties	  	Lease
Expiration(s)  (2)	 	Annualized Lease
Revenue  (3)	  	Percentage of
Annualized Lease
Revenue (%)	  	Leased Square
Footage	  	Percentage of
Leased Square
Footage (%)	
U.S. Government	  	AAA	  	10	  	(4)	 	$	74,509	  	12.7	  	1,635	  	9.0	
BP Corporation	  	AA	  	1	  	2013	 	 	31,725	  	5.4	  	783	  	4.3	
Leo Burnett	  	BBB+	  	2	  	2019	 	 	27,877	  	4.8	  	695	  	3.8	
US Bancorp	  	A+	  	1	  	2014	 	 	23,911	  	4.1	  	715	  	3.9	
Winston & Strawn	  	No rating available  (5)	  	1	  	2024	 	 	19,200	  	3.3	  	417	  	2.3	
Nestle	  	AA	  	1	  	2015	 	 	18,704	  	3.2	  	480	  	2.6	
State of New York	  	AA	  	1	  	2019	 	 	18,185	  	3.1	  	480	  	2.6	
Sanofi-aventis	  	AA-	  	2	  	2012	 	 	17,270	  	2.9	  	454	  	2.5	
Independence Blue Cross	  	No rating available	  	1	  	2023	 	 	15,185	  	2.6	  	761	  	4.2	
Kirkland & Ellis	  	No rating available  (5)	  	1	  	2011	 	 	14,646	  	2.5	  	465	  	2.6	
Zurich American	  	AA-	  	1	  	2011	 	 	10,784	  	1.8	  	300	  	1.6	
DDB Needham	  	A-	  	1	  	2018	 	 	10,113	  	1.7	  	278	  	1.5	
Shaw	  	BB+	  	1	  	2018	 	 	9,966	  	1.7	  	313	  	1.7	
State Street Bank	  	AA-	  	1	  	2011	 	 	9,075	  	1.5	  	235	  	1.3	
Lockheed Martin	  	A-	  	3	  	2014	 	 	8,617	  	1.5	  	284	  	1.6	
City of New York	  	AA	  	1	  	2020	 	 	7,931	  	1.4	  	270	  	1.5	
Citigroup	  	A	  	2	  	2010	 	 	7,567	  	1.3	  	415	  	2.3	
Gallagher	  	No rating available	  	1	  	2018	 	 	7,372	  	1.3	  	307	  	1.7	
Caterpillar Financial	  	A	  	1	  	2022	 	 	6,913	  	1.2	  	312	  	1.7	
Gemini	  	A+	  	1	  	2013	 	 	6,851	  	1.2	  	205	  	1.1	
Other	  	 	  	 	  	Various	 	 	239,668	  	40.8	  	8,417	  	46.2	
 	  	 	  	 	  	 	 	 	 	  	 	  	 	  	 	
Total	  	 	  	 	  	 	 	$	586,069	  	100.0	  	18,221	  	100.0	

Tenant Credit Rating (1)	  	Annualized Lease
Revenue	  	Percentage of
Annualized Lease
Revenue (%)	
AAA	  	$	80,527	  	13.7	
AA	  	 	117,469	  	20.0	
A	  	 	107,852	  	18.4	
BBB	  	 	68,276	  	11.6	
BB	  	 	27,197	  	4.6	
B	  	 	13,418	  	2.3	
Below	  	 	3,914	  	0.7	
Not rated	  	 	167,416	  	28.6	
 	  	 	 	  	 	
Total	  	$	586,069	  	100.0	

(1)	Credit rating may reflect credit rating of parent or guarantor.	
(2)	The lease expiration year presented is that of the majority of the space leased to the tenant in question.	
(3)	Please refer to page 25 for the definition of Annualized Lease Revenue.	
(4)	There are several leases with several different agencies of the U.S. Government with expiration years ranging from 2011 to 2025.	
(5)	While no ratings are available for Winston & Strawn and Kirkland & Ellis, these tenants are ranked #34 and #7, respectively, in the 2008 AmLaw 100 ranking, a publication of The American Lawyer Magazine, which annually ranks the top-grossing, most profitable law firms.	
 
16

Piedmont Office Realty Trust, Inc.
Leasing Activity
(in thousands)

 
 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended December 31, 2009	 	
 	  	Leased
Square
Footage	 	 	Rentable
Square
Footage	 	 	Occupancy	 	
 	 	 	 	
As of September 30, 2009	  	18,238	  	 	20,232	  	 	90.1	% 	
 	 	 	 	
Leases Commenced	  	115	  	 	 	 	 	 	 	
Leases Expired	  	(50	) 	 	 	 	 	 	 	
Expansions (Contractions)	  	(88	) 	 	 	 	 	 	 	
Other	  	6	  	 	(3	) 	 	 	 	

As of December 31, 2009(2)	  	18,221	  	 	20,229	  	 	90.1	% 	

 	 	 	 	 	 	 	 	 	
 	  	Year Ended December 31, 2009	 	
 	  	Leased
Square
Footage	 	 	Rentable
Square
Footage	  	Occupancy	 	
 	 	 	 	
As of December 31, 2008	  	18,546	  	 	20,226	  	91.7	% 	
 	 	 	 	
Leases Commenced	  	447	  	 	 	  	 	 	
Leases Expired	  	(694	) 	 	 	  	 	 	
Expansions (Contractions)	  	(76	) 	 	 	  	 	 	
Other	  	(2	) 	 	3	  	 	 	

As of December 31, 2009(2)	  	18,221	  	 	20,229	  	90.1	% 	

Rental Rate Roll Up / Roll Down Associated with New Leasing Activity for Leases Greater than 15,000 Square Feet (1)

 
 	 	 	 	 	 	 	 	 	
 	  	Square Feet	  	% Change Cash
Rents	 	 	% Change Accrual
Rents	 	
For the three months ended December 31, 2009:	  	 	  	 	 	 	 	 	
 	 	 	 	
New, renewal, and expansion leases executed	  	1,070	  	(3.3	%) 	 	6.2	% 	
 	 	 	 	
For the year ended December 31, 2009:	  	 	  	 	 	 	 	 	
 	 	 	 	
New, renewal, and expansion leases executed	  	2,025	  	(1.4	%) 	 	6.5	% 	
 
(1)	The population analyzed consists of office leases greater than 15,000 square feet in size and represents approximately 91% of leases executed during the quarter and 87% of leases executed during the year (activity associated with our unconsolidated joint venture assets was excluded from this analysis). For spaces that had been vacant for less than 1 year, the rents last in effect for the previous lease were compared to the initial rents of the new lease. Spaces that had been vacant for greater than 1 year were excluded from this analysis.	
(2)	The square footage associated with leases with end of period expiration dates is included in the end of the period leased square footage.	
 
17

Piedmont Office Realty Trust, Inc.
Lease Expiration Schedule
As of December 31, 2009
(in thousands)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	OFFICE PORTFOLIO	  	GOVERNMENTAL ENTITIES	
 	  	Rentable Square
Footage	  	Percentage of
Rentable Square
Footage (%)	  	Annualized Lease
Revenue(1)	  	Percentage of
Annualized Lease
Revenue (%)	  	Annualized Lease
Revenue(1)	  	Percentage of
Annualized Lease
Revenue (%)	
 	 	 	 	 	 	 	
Vacant	  	2,009	  	9.9	  	$	0	  	0.0	  	$	0	  	0.0	
2010(2)	  	1,397	  	6.9	  	 	40,134	  	6.8	  	 	0	  	0.0	
2011	  	2,356	  	11.6	  	 	75,159	  	12.8	  	 	21,104	  	3.6	
2012	  	2,217	  	11.0	  	 	80,913	  	13.8	  	 	36,629	  	6.2	
2013	  	1,816	  	9.0	  	 	63,139	  	10.8	  	 	1,392	  	0.2	
2014	  	1,748	  	8.6	  	 	56,127	  	9.6	  	 	3,580	  	0.6	
2015	  	1,398	  	6.9	  	 	41,776	  	7.1	  	 	0	  	0.0	
2016	  	1,013	  	5.0	  	 	28,004	  	4.8	  	 	264	  	0.0	
2017	  	423	  	2.1	  	 	15,340	  	2.6	  	 	2,005	  	0.3	
2018	  	1,456	  	7.2	  	 	43,964	  	7.5	  	 	8,637	  	1.5	
2019	  	1,408	  	7.0	  	 	52,590	  	9.0	  	 	18,088	  	3.1	
2020	  	831	  	4.1	  	 	22,460	  	3.8	  	 	7,931	  	1.4	
2021	  	140	  	0.7	  	 	3,655	  	0.6	  	 	0	  	0.0	
2022	  	317	  	1.6	  	 	7,713	  	1.3	  	 	0	  	0.0	
2023	  	761	  	3.8	  	 	15,185	  	2.6	  	 	0	  	0.0	
Thereafter	  	939	  	4.6	  	 	39,910	  	6.9	  	 	1,323	  	0.3	

Total / Weighted Average	  	20,229	  	100.0	  	$	586,069	  	100.0	  	$	100,953	  	17.2	

(1)	Annualized lease revenue for purposes of this schedule includes the revenue effects of leases executed but not commenced as of December 31, 2009.	
(2)	Includes leases with an expiration date of December 31, 2009 aggregating 114,668 square feet and Annualized Lease Revenue of $3,441,632 for which no new leases were signed.	
 
18

Piedmont Office Realty Trust, Inc.
Annual Lease Expirations
As of December 31, 2009
(in thousands)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	12/31/2010	  	12/31/2011	  	12/31/2012	  	12/31/2013	
 	  	Expiring
Square
Footage	  	Expiring
Lease
Revenue(1)	  	Expiring
Square
Footage	  	Expiring
Lease
Revenue(1)	  	Expiring
Square
Footage	  	Expiring
Lease
Revenue(1)	  	Expiring
Square
Footage	  	Expiring
Lease
Revenue(1)	
Atlanta	  	57	  	$	1,836	  	84	  	$	2,010	  	34	  	$	617	  	46	  	$	1,051	
Austin	  	0	  	 	0	  	0	  	 	0	  	0	  	 	0	  	0	  	 	0	
Boston	  	1	  	 	32	  	235	  	 	9,075	  	7	  	 	334	  	111	  	 	2,120	
Central & South Florida	  	11	  	 	323	  	124	  	 	2,709	  	16	  	 	445	  	55	  	 	1,347	
Chicago	  	289	  	 	10,389	  	407	  	 	14,025	  	42	  	 	1,563	  	829	  	 	31,208	
Cleveland	  	0	  	 	0	  	22	  	 	485	  	112	  	 	1,951	  	14	  	 	329	
Dallas	  	51	  	 	1,148	  	285	  	 	5,654	  	86	  	 	2,066	  	9	  	 	204	
Denver	  	0	  	 	0	  	0	  	 	0	  	0	  	 	0	  	0	  	 	0	
Detroit	  	81	  	 	2,576	  	262	  	 	6,111	  	84	  	 	2,373	  	198	  	 	5,639	
Houston	  	0	  	 	0	  	0	  	 	0	  	0	  	 	0	  	0	  	 	0	
Los Angeles	  	140	  	 	5,205	  	100	  	 	3,638	  	191	  	 	3,979	  	57	  	 	2,101	
Minneapolis	  	26	  	 	890	  	145	  	 	4,506	  	19	  	 	744	  	44	  	 	1,418	
Nashville	  	0	  	 	0	  	0	  	 	0	  	0	  	 	0	  	0	  	 	0	
New York	  	467	  	 	8,965	  	57	  	 	2,257	  	621	  	 	21,051	  	221	  	 	7,610	
Philadelphia	  	0	  	 	0	  	0	  	 	0	  	0	  	 	0	  	0	  	 	0	
Phoenix	  	91	  	 	1,860	  	45	  	 	788	  	0	  	 	0	  	0	  	 	0	
Portland	  	73	  	 	1,336	  	105	  	 	1,432	  	73	  	 	1,375	  	0	  	 	0	
Seattle	  	87	  	 	2,342	  	69	  	 	1,848	  	0	  	 	0	  	0	  	 	0	
Washington, D.C.	  	23	  	 	2,633	  	416	  	 	22,486	  	932	  	 	44,354	  	232	  	 	9,766	

Total / Weighted Average	  	1,397	  	$	39,535	  	2,356	  	$	77,024	  	2,217	  	$	80,852	  	1,816	  	$	62,793	

(1)	Expiring lease revenue is calculated as expiring square footage multiplied by the rent per square foot of the tenant currently leasing the space.	
 
19

Piedmont Office Realty Trust, Inc.
Capital Expenditures and Commitments
For the year ended December 31, 2009
Unaudited ($ in thousands)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	For the Three Months Ended	  	For the Year Ended	
 	  	March 31, 2009	  	June 30, 2009	  	September 30, 2009	  	December 31, 2009	  	December 31, 2009	
Non-incremental (1)	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Bldg / construction / dev	  	$	1,256	  	$	1,108	  	$	852	  	$	3,344	  	$	6,560	
Tenant improvements	  	 	3,840	  	 	5,233	  	 	3,527	  	 	10,278	  	 	22,878	
Leasing commissions	  	 	6,708	  	 	1,193	  	 	4,081	  	 	6,076	  	 	18,058	
 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Total non-incremental	  	 	11,804	  	 	7,534	  	 	8,460	  	 	19,698	  	 	47,496	
 	 	 	 	 	 	
Incremental (1)	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
 	 	 	 	 	 	
Bldg / construction / dev	  	 	527	  	 	551	  	 	849	  	 	2,038	  	 	3,965	
Tenant improvements	  	 	0	  	 	0	  	 	0	  	 	19	  	 	19	
Leasing commissions	  	 	0	  	 	0	  	 	0	  	 	0	  	 	0	
 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Total incremental	  	 	527	  	 	551	  	 	849	  	 	2,057	  	 	3,984	

Total capital expenditures	  	$	12,331	  	$	8,085	  	$	9,309	  	$	21,755	  	$	51,480	
 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Commitments related to unexpired contractual tenant improvement obligations for leases executed in current and prior periods that have not yet been fulfilled as of December 31, 2009 were $121.5 million. The three largest commitments total approximately $77.4 M, or 62% of total outstanding commitments.

(1)	Definitions for non-incremental and incremental capital expenditures can be found on pages 25 and 26.	
 
20

Piedmont Office Realty Trust, Inc.
Contractual Tenant Improvements and Leasing Commissions

 
 	 	 	 	 	 	 	 	 	 	
 	  	2009	  	2008	  	2007	
 	 	 	 	
Renewal Leases	  	 	 	  	 	 	  	 	 	
Number of leases	  	 	34	  	 	34	  	 	39	
Square feet	  	 	1,568,895	  	 	967,959	  	 	1,672,383	
Tenant improvements per square foot	  	$	12.01	  	$	8.28	  	$	13.19	
Leasing commissions per square foot	  	$	5.51	  	$	7.17	  	$	7.18	
 	  	 	 	  	 	 	  	 	 	
Total per square foot	  	$	17.52	  	$	15.45	  	$	20.37	
 	 	 	 	
Tenant improvements per square foot per year of lease term	  	$	1.44	  	$	1.39	  	$	1.85	
Leasing commissions per square foot per year of lease term	  	$	0.66	  	$	1.20	  	$	1.01	
 	  	 	 	  	 	 	  	 	 	
Total per square foot per year of lease term	  	$	2.10	  	$	2.59	  	$	2.86	
 	 	 	 	
New Leases	  	 	 	  	 	 	  	 	 	
Number of leases	  	 	28	  	 	37	  	 	44	
Square feet	  	 	700,295	  	 	747,919	  	 	508,605	
Tenant improvements per square foot	  	$	45.04	  	$	30.59	  	$	24.93	
Leasing commissions per square foot	  	$	17.12	  	$	15.95	  	$	10.39	
 	  	 	 	  	 	 	  	 	 	
Total per square foot	  	$	62.16	  	$	46.54	  	$	35.32	
 	 	 	 	
Tenant improvements per square foot per year of lease term	  	$	4.05	  	$	3.24	  	$	3.29	
Leasing commissions per square foot per year of lease term	  	$	1.54	  	$	1.69	  	$	1.37	
 	  	 	 	  	 	 	  	 	 	
Total per square foot per year of lease term	  	$	5.59	  	$	4.93	  	$	4.66	
 	 	 	 	
Total	  	 	 	  	 	 	  	 	 	
Number of leases	  	 	62	  	 	71	  	 	83	
Square feet	  	 	2,269,190	  	 	1,715,878	  	 	2,180,988	
Tenant improvements per square foot	  	$	22.21	  	$	18.01	  	$	15.93	
Leasing commissions per square foot	  	$	9.09	  	$	11.00	  	$	7.93	
 	  	 	 	  	 	 	  	 	 	
Total per square foot	  	$	31.30	  	$	29.01	  	$	23.86	
 	 	 	 	
Tenant improvements per square foot per year of lease term	  	$	2.42	  	$	2.41	  	$	2.21	
Leasing commissions per square foot per year of lease term	  	$	0.99	  	$	1.47	  	$	1.10	
 	  	 	 	  	 	 	  	 	 	
Total per square foot per year of lease term	  	$	3.41	  	$	3.88	  	$	3.31	
NOTE: This information is presented for our wholly-owned office assets only.
 
21

Piedmont Office Realty Trust, Inc.
Geographic Diversification
As of December 31, 2009

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Location	  	Number of
Properties	  	Rentable Square
Footage (in
Thousands)	  	Percentage of
Rentable Square
Footage (%)	  	Occupied
Square Feet	  	Percent Leased
(%)	  	Annualized Lease
Revenue ($’s in
thousands) *	  	Percentage of
Annualized Lease
Revenue (%)	
 	 	 	 	 	 	 	 	
Chicago	  	6	  	4,883	  	24.1	  	4,434	  	90.8	  	$	157,784	  	26.9	
Washington, D.C.	  	14	  	3,045	  	15.1	  	2,587	  	85.0	  	 	115,201	  	19.7	
New York	  	9	  	3,288	  	16.3	  	3,024	  	92.0	  	 	92,226	  	15.7	
Minneapolis	  	2	  	1,227	  	6.1	  	1,220	  	99.4	  	 	39,407	  	6.7	
Los Angeles	  	5	  	1,133	  	5.6	  	987	  	87.1	  	 	34,548	  	5.9	
Dallas	  	7	  	1,275	  	6.3	  	1,114	  	87.4	  	 	24,743	  	4.2	
Boston	  	4	  	583	  	2.9	  	540	  	92.6	  	 	22,819	  	3.9	
Detroit	  	4	  	929	  	4.6	  	759	  	81.7	  	 	20,952	  	3.6	
Philadelphia	  	1	  	761	  	3.8	  	761	  	100.0	  	 	15,185	  	2.6	
Atlanta	  	3	  	607	  	3.0	  	469	  	77.3	  	 	11,656	  	2.0	
Houston	  	1	  	313	  	1.5	  	313	  	100.0	  	 	9,981	  	1.7	
Phoenix	  	4	  	557	  	2.8	  	434	  	77.9	  	 	7,639	  	1.3	
Nashville	  	1	  	312	  	1.5	  	312	  	100.0	  	 	6,913	  	1.2	
Central & South Florida	  	3	  	297	  	1.5	  	260	  	87.5	  	 	5,875	  	1.0	
Austin	  	1	  	195	  	1.0	  	195	  	100.0	  	 	5,536	  	0.9	
Portland	  	4	  	325	  	1.6	  	325	  	100.0	  	 	5,190	  	0.9	
Seattle	  	1	  	156	  	0.8	  	156	  	100.0	  	 	4,189	  	0.7	
Cleveland	  	2	  	187	  	0.9	  	175	  	93.6	  	 	3,498	  	0.6	
Denver	  	1	  	156	  	0.8	  	156	  	100.0	  	 	2,727	  	0.5	

Total / Weighted Average	  	73	  	20,229	  	100.0	  	18,221	  	90.1	  	$	586,069	  	100.0	

22

Piedmont Office Realty Trust, Inc.
Industry Diversification
As of December 31, 2009

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Industry Diversification	  	Number of
Tenants	  	Percentage of
Total Tenants
(%)	  	Annualized Lease
Revenue ($’s in
thousands)	  	Percentage of
Annualized Lease
Revenue (%)	  	Leased Square
Footage (in
thousands)	  	Percentage of
Leased Square
Footage (%)	
 	 	 	 	 	 	 	
Governmental Entity	  	20	  	4.8	  	$	100,953	  	17.2	  	2,394	  	13.1	
Business Services	  	62	  	14.8	  	 	70,563	  	12.0	  	2,209	  	12.1	
Depository Institutions	  	17	  	4.1	  	 	56,688	  	9.7	  	1,856	  	10.2	
Legal Services	  	10	  	2.4	  	 	43,124	  	7.4	  	1,156	  	6.3	
Insurance Carriers	  	19	  	4.5	  	 	36,555	  	6.2	  	1,464	  	8.0	
Petroleum Refining & Related Industries	  	2	  	0.5	  	 	31,726	  	5.4	  	784	  	4.3	
Chemicals & Allied Products	  	9	  	2.1	  	 	24,464	  	4.2	  	741	  	4.1	
Nondepository Credit Institutions	  	10	  	2.4	  	 	21,136	  	3.6	  	827	  	4.5	
Food & Kindred Products	  	3	  	0.7	  	 	19,416	  	3.3	  	509	  	2.8	
Engineering, Accounting, Research, Management & Related Services	  	23	  	5.5	  	 	18,711	  	3.2	  	540	  	3.0	
Communications	  	36	  	8.6	  	 	17,979	  	3.1	  	620	  	3.4	
Security & Commodity Brokers, Dealers, Exchanges & Services	  	17	  	4.1	  	 	14,736	  	2.5	  	528	  	2.9	
Electronic & Other Electrical Equipment & Components, Except Computer	  	8	  	1.9	  	 	13,244	  	2.3	  	600	  	3.3	
Educational Services	  	8	  	1.9	  	 	11,825	  	2.0	  	283	  	1.6	
Insurance Agents, Brokers & Services	  	6	  	1.4	  	 	10,579	  	1.8	  	412	  	2.3	
Other	  	169	  	40.3	  	 	94,370	  	16.1	  	3,298	  	18.1	
 	  	 	  	 	  	 	 	  	 	  	 	  	 	
Total	  	419	  	100.0	  	$	586,069	  	100.0	  	18,221	  	100.0	

Lease Distribution
As of December 31, 2009

 	  	Number of
Leases	  	Percentage of
Leases (%)	  	Annualized Lease
Revenue ($’s in
thousands)	  	Percentage of
Annualized Lease
Revenue (%)	  	Leased Square
Footage (in
thousands)	  	Percentage of
Leased Square
Footage (%)	
 	 	 	 	 	 	 	
2,500 or Less	  	162	  	34.5	  	$	12,738	  	2.2	  	124	  	0.7	
2,501 - 10,000	  	121	  	25.7	  	 	22,440	  	3.8	  	613	  	3.4	
10,001 - 20,000	  	47	  	10.0	  	 	21,917	  	3.7	  	676	  	3.7	
20,001 - 40,000	  	54	  	11.5	  	 	48,109	  	8.2	  	1,497	  	8.2	
40,001 - 100,000	  	32	  	6.8	  	 	61,077	  	10.4	  	2,049	  	11.2	
Greater than 100,000	  	54	  	11.5	  	 	419,788	  	71.6	  	13,262	  	72.8	
 	  	 	  	 	  	 	 	  	 	  	 	  	 	
Total	  	470	  	100.0	  	$	586,069	  	100.0	  	18,221	  	100.0	

23

Piedmont Office Realty Trust, Inc.
Other Investments
As of December 31, 2009

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INDUSTRIAL PROPERTIES	  	Location	  	Percent
Ownership (%)	  	Year Built	  	Book Value
($’s in
thousands)	  	Rentable Square
Footage (in
thousands)	  	Percent
Leased (%)	
112 Hidden Lake Circle	  	Duncan, SC	  	100	  	1987	  	$	8,331	  	313.0	  	100	
110 Hidden Lake Circle	  	Duncan, SC	  	100	  	1987	  	 	14,475	  	473.0	  	100	
 	  	 	  	 	  	 	  	 	 	  	 	  	 	
 	  	 	  	 	  	 	  	$	22,806	  	786.0	  	100	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	
UNCONSOLIDATED JOINT VENTURE
PROPERTIES	  	Location	  	Percent
Ownership (%)	  	Year Built	  	Book Value
($’s in
thousands)	  	Rentable Square
Footage (in
thousands)	  	Percent
Leased (%)	
14400 Hertz Quail Springs Parkway	  	Oklahoma City, OK	  	4	  	1997	  	$	4,099	  	57.2	  	100.0	
360 Interlocken	  	Broomfield, CO	  	4	  	1996	  	 	6,560	  	51.7	  	27.9	
47300 Kato Road	  	Fremont, CA	  	78	  	1982	  	 	3,486	  	58.4	  	100.0	
20/20 Building	  	Leawood, KS	  	57	  	1992	  	 	4,875	  	68.2	  	90.8	
4685 Investment Drive	  	Troy, MI	  	55	  	2000	  	 	9,796	  	77.1	  	100.0	
5301 Maryland Way	  	Brentwood, TN	  	55	  	1989	  	 	20,664	  	201.2	  	100.0	
8560 Upland Drive	  	Parker, CO	  	72	  	2001	  	 	10,969	  	148.2	  	100.0	
Two Park Center	  	Hoffman Estates, IL	  	72	  	1999	  	 	16,792	  	193.7	  	83.0	
 	  	 	  	 	  	 	  	 	 	  	 	  	 	
 	  	 	  	 	  	 	  	$	77,241	  	855.7	  	91.1	

 	 	 	 	 	
LAND PARCELS	  	Location	  	Acres	
Portland Land Parcels	  	Beaverton, OR	  	18.2	
Enclave Parkway	  	Houston, TX	  	4.5	
Durham Avenue	  	South Plainfield, NJ	  	8.9	
Corporate Court	  	Holtsville, NY	  	10.0	
State Highway 161	  	Irving, TX	  	4.5	
Sylvan Avenue	  	Englewood Cliffs, NJ	  	2.4	
 	  	 	  	 	
 	  	 	  	48.5	

 	 	 	 	 	 	
STRUCTURED FINANCE	  	Location	  	Book Value
($’s in
thousands)	
Mezzanine Loan (1)	  	Chicago, IL	  	$	47,526	
Mezzanine Loan (1)	  	Chicago, IL	  	 	11,213	
 	  	 	  	 	 	
 	  	 	  	$	58,739	

(1)	Secured by a pledge of the equity interest of the entity owning a 46-story, Class A commercial office building located in downtown Chicago.	
 
24

Piedmont Office Realty Trust, Inc.
Supplemental Definitions

Included in this section are management’s statements regarding certain non-GAAP financial measures provided in this supplemental package and reasons why management believes that these measures provide useful information to investors about the Company’s financial condition and results of operations. Reconciliations of these non-GAAP measures are presented on pages 27-29.
Adjusted Funds From Operations (“AFFO”): AFFO is calculated by deducting from Core FFO non-incremental capital expenditures and adding back non-cash items including non-real estate depreciation, straight lined rents and fair value lease revenue, non-cash components of interest expense and compensation expense, and by making similar adjustments for unconsolidated partnerships and joint ventures. Although AFFO may not be comparable to that of other REITs, we believe it provides a meaningful indicator of our ability to fund cash needs and to make cash distributions to equity owners. AFFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating performance to net income, as an alternative to net cash flows from operating activities or as a measure of our liquidity.
Annualized Lease Revenue (“ALR”): ALR is calculated by multiplying (i) rental payments (defined as base rent plus operating expenses, if payable by the tenant on a monthly basis under the terms of a lease that have been executed, but excluding rental abatements and rental payments related to executed but not commenced leases for space that was covered by an existing lease), by (ii) 12. In instances in which contractual rents and operating expenses are collected on an annual, semi-annual, or quarterly basis, such amounts are multiplied by a factor of 1, 2, or 4, respectively, to calculate the annualized figure. For leases that have been executed but not commenced relating to un-leased space, ALR is calculated by multiplying (i) monthly base rental payments for the initial month of the lease term, by (ii) 12. Unless stated otherwise, this measure excludes our industrial properties and unconsolidated joint venture interests.
Core EBITDA: Core EBITDA is defined as net income before interest, taxes, depreciation and amortization as defined below and incrementally adding back any impairment losses and other extraordinary items. We do not include impairment losses in this measure because we feel these types of losses create volatility in our earnings and make it difficult to determine the earnings generated by our ongoing business. We believe Core EBITDA is a reasonable measure of our liquidity. Core EBITDA is a non-GAAP financial measure and should not be viewed as an alternative measurement of cash flows from operating activities or liquidity. Other REITs may calculate Core EBITDA differently and our calculation should not be compared to that of other REITs.
Core Funds From Operations (“Core FFO”): We calculate Core FFO by starting with FFO, as defined by NAREIT, and adjust for certain non-recurring items such as impairment losses and other extraordinary items. Such items create significant earnings volatility. We believe Core FFO provides a meaningful measure of our operating performance and more predictability regarding future earnings potential. Core FFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating performance to net income; therefore, it should not be compared to other REITs’ equivalent to Core FFO.
Core Net Operating Income (“Core NOI”): Core NOI is defined as income from property operations with the add-back of corporate general and administrative expense, depreciation and amortization, and casualty and impairment losses and the deduction of income associated with lease terminations. We present this measure on a cash basis which eliminates the effects of straight lined rents and fair value lease revenue. The company uses this measure to assess its operating results and believes it is important in assessing operating performance. Core NOI is a non-GAAP measure which does not have any standard meaning prescribed by GAAP and therefore may not be comparable to similar measures presented by other companies.
EBITDA: EBITDA is defined as net income before interest, taxes, depreciation and amortization. We believe EBITDA is an appropriate measure of our ability to incur and service debt. EBITDA should not be considered as an alternative to cash flows from operating activities, as a measure of our liquidity or as an alternative to net income as an indicator of our operating activities. Other REITs may calculate EBITDA differently and our calculation should not be compared to that of other REITs.
Funds From Operations (“FFO”): FFO is calculated in accordance with the current National Association of Real Estate Investment Trusts (“NAREIT”) definition. NAREIT currently defines FFO as net income (computed in accordance with GAAP), excluding gains or losses from sales of property plus depreciation and amortization on real estate assets, and after the same adjustments for unconsolidated partnerships and joint ventures. Such factors can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates. FFO may provide valuable comparisons of operating performance between periods and with other REITs. FFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating performance to net income. We believe that FFO is a beneficial indicator of the performance of an equity REIT. However, other REITs may not define FFO in accordance with the NAREIT definition, or may interpret the current NAREIT definition differently than we do; therefore, our computation of FFO may not be comparable to that of such other REITs.
Incremental Capital Expenditures: Defined as capital expenditures of a non-recurring nature that incrementally enhance the underlying assets’ income generating capacity. Tenant improvements, leasing commissions, building capital and deferred lease incentives incurred to lease space that was dark at acquisition, improvements associated with the expansion of a building and renovations that change the underlying classification of a building are included in this measure.
 
25

Piedmont Office Realty Trust, Inc.
Supplemental Definitions

NOI from Unconsolidated Joint Ventures: NOI from Unconsolidated Joint Ventures is defined as Core NOI attributable to our interest in eight properties owned through unconsolidated partnerships. We present this measure on a cash basis which eliminates the effects of straight lined rents and fair value lease revenue. NOI from Unconsolidated Joint Ventures is a non-GAAP measure and therefore may not be comparable to similarly defined data provided by other REITs.
Non-Incremental Capital Expenditures: Defined as capital expenditures of a recurring nature related to tenant improvements and leasing commissions that do not incrementally enhance the underlying assets’ income generating capacity. We exclude first generation tenant improvements and leasing commissions from this measure.
Same Store NOI: Same Store NOI is calculated as the Core NOI attributable to the properties owned or placed in service during the entire span of the current and prior two years of reporting periods. Same Store NOI excludes amounts attributable to industrial properties. We present this measure on a cash basis which eliminates the effects of straight lined rents and fair value lease revenue. We believe Same Store NOI is an important measure of comparison of our stabilized properties’ operating performance. Other REITs may calculate Same Store NOI differently and our calculation should not be compared to that of other REITs.
Same Store Properties: Same Store Properties is defined as properties owned or placed in service during the entire span of the current and prior two years of reporting periods. Same Store Properties exclude industrial properties. We believe Same Store Properties is an important measure of comparison of our stabilized properties.
 
26

Piedmont Office Realty Trust, Inc.
Same Store Net Operating Income
Unaudited (in thousands)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	 	Twelve Months Ended	 	
 	  	12/31/2009	 	 	9/30/2009	 	 	6/30/2009	 	 	3/31/2009	 	 	12/31/2009	 	 	12/31/2008	 	
 	 	 	 	 	 	 	
Real Estate Operating Income	  	$	44,229	  	 	$	11,375	  	 	$	45,589	  	 	$	47,174	  	 	$	148,367	  	 	$	204,166	  	
 	 	 	 	 	 	 	
Add:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation	  	 	27,090	  	 	 	26,792	  	 	 	26,561	  	 	 	25,630	  	 	 	106,073	  	 	 	99,745	  	
Amortization	  	 	16,171	  	 	 	13,991	  	 	 	13,695	  	 	 	13,442	  	 	 	57,299	  	 	 	62,050	  	
Impairment loss on real estate assets	  	 	—  	  	 	 	35,063	  	 	 	—  	  	 	 	—  	  	 	 	35,063	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core EBITDA	  	 	87,490	  	 	 	87,221	  	 	 	85,845	  	 	 	86,246	  	 	 	346,802	  	 	 	365,961	  	
 	 	 	 	 	 	 	
Add:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
General & administrative expenses	  	 	6,269	  	 	 	5,982	  	 	 	8,457	  	 	 	7,563	  	 	 	28,271	  	 	 	31,631	  	
Deduct:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Lease termination income	  	 	(1,981	) 	 	 	—  	  	 	 	(782	) 	 	 	—  	  	 	 	(2,763	) 	 	 	(13,273	) 	
Lease termination expense - straight line rent & FAS 141	  	 	552	  	 	 	627	  	 	 	174	  	 	 	—  	  	 	 	1,353	  	 	 	590	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core net operating income (accrual basis)	  	 	92,330	  	 	 	93,830	  	 	 	93,694	  	 	 	93,809	  	 	 	373,663	  	 	 	384,909	  	
 	 	 	 	 	 	 	
Deduct:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Straight line rent adjustment	  	 	(2,588	) 	 	 	(1,568	) 	 	 	(1,424	) 	 	 	2,657	  	 	 	(2,923	) 	 	 	(1,994	) 	
FAS 141 adjustment	  	 	(1,211	) 	 	 	(1,249	) 	 	 	(1,246	) 	 	 	(1,228	) 	 	 	(4,934	) 	 	 	(3,225	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core net operating income (cash basis)	  	 	88,531	  	 	 	91,013	  	 	 	91,024	  	 	 	95,238	  	 	 	365,806	  	 	 	379,690	  	
 	 	 	 	 	 	 	
Deduct:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Acquisitions	  	 	(131	) 	 	 	(97	) 	 	 	(298	) 	 	 	(289	) 	 	 	(815	) 	 	 	(1,061	) 	
Industrial Properties	  	 	(638	) 	 	 	(638	) 	 	 	(642	) 	 	 	(641	) 	 	 	(2,559	) 	 	 	(2,513	) 	

Same Store NOI	  	$	87,762	  	 	$	90,278	  	 	$	90,084	  	 	$	94,308	  	 	$	362,432	  	 	$	376,116	  	

27

Piedmont Office Realty Trust, Inc.
Net Income/ FFO/ Core FFO/ AFFO Reconciliations
Unaudited (in thousands)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	 	Twelve Months Ended	 	
 	  	12/31/2009	 	 	9/30/2009	 	 	6/30/2009	 	 	3/31/2009	 	 	12/31/0009	 	 	12/31/2008	 	
 	 	 	 	 	 	 	
Rental income	  	$	112,000	  	 	$	112,874	  	 	$	111,994	  	 	$	112,946	  	 	$	449,814	  	 	$	455,183	  	
Tenant reimbursements	  	 	36,108	  	 	 	36,924	  	 	 	36,059	  	 	 	40,105	  	 	 	149,196	  	 	 	150,264	  	
Property mgmt fees	  	 	928	  	 	 	742	  	 	 	744	  	 	 	697	  	 	 	3,111	  	 	 	3,245	  	
Other rental income	  	 	1,981	  	 	 	0	  	 	 	782	  	 	 	0	  	 	 	2,763	  	 	 	13,273	  	
Gain on sale	  	 	0	  	 	 	0	  	 	 	0	  	 	 	0	  	 	 	0	  	 	 	0	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	151,017	  	 	 	150,540	  	 	 	149,579	  	 	 	153,748	  	 	 	604,884	  	 	 	621,965	  	
 	 	 	 	 	 	 	
Property operating expense	  	 	56,768	  	 	 	56,864	  	 	 	54,765	  	 	 	59,470	  	 	 	227,867	  	 	 	222,351	  	
Asset & prop mgmt fees	  	 	490	  	 	 	473	  	 	 	512	  	 	 	469	  	 	 	1,944	  	 	 	2,022	  	
Depreciation	  	 	27,090	  	 	 	26,792	  	 	 	26,561	  	 	 	25,630	  	 	 	106,073	  	 	 	99,745	  	
Amortization	  	 	16,171	  	 	 	13,991	  	 	 	13,695	  	 	 	13,442	  	 	 	57,299	  	 	 	62,050	  	
Casualty & impairment loss	  	 	0	  	 	 	35,063	  	 	 	0	  	 	 	0	  	 	 	35,063	  	 	 	0	  	
General & administrative expense	  	 	6,269	  	 	 	5,982	  	 	 	8,457	  	 	 	7,563	  	 	 	28,271	  	 	 	31,631	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total real estate operating expenses	  	 	106,788	  	 	 	139,165	  	 	 	103,990	  	 	 	106,574	  	 	 	456,517	  	 	 	417,799	  	
 	 	 	 	 	 	 	
Real estate operating income	  	 	44,229	  	 	 	11,375	  	 	 	45,589	  	 	 	47,174	  	 	 	148,367	  	 	 	204,166	  	
 	 	 	 	 	 	 	
Interest expense	  	 	(19,488	) 	 	 	(19,518	) 	 	 	(19,394	) 	 	 	(19,343	) 	 	 	(77,743	) 	 	 	(75,988	) 	
Interest and other income	  	 	652	  	 	 	1,989	  	 	 	1,147	  	 	 	662	  	 	 	4,450	  	 	 	3,416	  	
Equity in income of unconsolidated JVs	  	 	672	  	 	 	(1,985	) 	 	 	754	  	 	 	663	  	 	 	104	  	 	 	256	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total other income/(expense)	  	 	(18,164	) 	 	 	(19,514	) 	 	 	(17,493	) 	 	 	(18,018	) 	 	 	(73,189	) 	 	 	(72,316	) 	
 	 	 	 	 	 	 	
Income / (loss) from continuing operations	  	 	26,065	  	 	 	(8,139	) 	 	 	28,096	  	 	 	29,156	  	 	 	75,178	  	 	 	131,850	  	
 	 	 	 	 	 	 	
Discontinued operations:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income	  	 	0	  	 	 	0	  	 	 	0	  	 	 	0	  	 	 	0	  	 	 	10	  	
Gain/(loss) on sale	  	 	0	  	 	 	0	  	 	 	0	  	 	 	0	  	 	 	0	  	 	 	0	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total from discontinued operations	  	 	0	  	 	 	0	  	 	 	0	  	 	 	0	  	 	 	0	  	 	 	10	  	
 	 	 	 	 	 	 	
Net income/ (loss)	  	 	26,065	  	 	 	(8,139	) 	 	 	28,096	  	 	 	29,156	  	 	 	75,178	  	 	 	131,860	  	
 	 	 	 	 	 	 	
Less: net income from non-controlling interest	  	 	(119	) 	 	 	(121	) 	 	 	(120	) 	 	 	(118	) 	 	 	(478	) 	 	 	(546	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NET INCOME/ (LOSS) ATTRIBUTABLE TO PIEDMONT	  	$	25,946	  	 	$	(8,260	) 	 	$	27,976	  	 	$	29,038	  	 	$	74,700	  	 	$	131,314	  	

Add Back:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation	  	 	27,264	  	 	 	27,004	  	 	 	26,773	  	 	 	25,837	  	 	 	106,878	  	 	 	100,849	  	
Amortization	  	 	16,274	  	 	 	14,094	  	 	 	13,797	  	 	 	13,543	  	 	 	57,708	  	 	 	62,767	  	
 	 	 	 	 	 	 	
Deduct:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gain / (loss) on sale of property	  	 	0	  	 	 	0	  	 	 	0	  	 	 	0	  	 	 	0	  	 	 	0	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
FUNDS FROM OPERATIONS (FFO)	  	$	69,484	  	 	$	32,838	  	 	$	68,546	  	 	$	68,418	  	 	$	239,286	  	 	$	294,930	  	

Add Back:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Casualty & impairment loss	  	 	0	  	 	 	37,633	  	 	 	0	  	 	 	0	  	 	 	37,633	  	 	 	2,088	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
CORE FUNDS FROM OPERATIONS	  	$	69,484	  	 	$	70,471	  	 	$	68,546	  	 	$	68,418	  	 	$	276,919	  	 	$	297,018	  	

Add Back:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation on corporate assets	  	 	171	  	 	 	155	  	 	 	154	  	 	 	152	  	 	 	632	  	 	 	379	  	
Straight lined rents	  	 	(1,618	) 	 	 	(846	) 	 	 	(1,228	) 	 	 	2,695	  	 	 	(997	) 	 	 	(1,216	) 	
Amortization of lease related intangibles	  	 	(1,663	) 	 	 	(1,283	) 	 	 	(1,223	) 	 	 	(1,230	) 	 	 	(5,399	) 	 	 	(3,214	) 	
Non-cash compensation expense	  	 	671	  	 	 	671	  	 	 	831	  	 	 	1,005	  	 	 	3,178	  	 	 	3,555	  	
Amortization related to notes payable & receivable	  	 	362	  	 	 	48	  	 	 	(243	) 	 	 	341	  	 	 	508	  	 	 	1,019	  	
 	 	 	 	 	 	 	
Deduct:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Non-incremental capital expenditures	  	 	(19,698	) 	 	 	(8,460	) 	 	 	(7,534	) 	 	 	(11,804	) 	 	 	(47,496	) 	 	 	(43,892	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
ADJUSTED FUNDS FROM OPERATIONS	  	$	47,709	  	 	$	60,756	  	 	$	59,303	  	 	$	59,577	  	 	$	227,345	  	 	$	253,649	  	

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Piedmont Office Realty Trust, Inc.
Unconsolidated Joint Venture NOI Reconciliation
Pro-rata (in thousands)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	  	Twelve Months Ended	
 	  	12/31/2009	 	 	9/30/2009	 	 	6/30/2009	  	3/31/2009	  	12/31/2009	  	12/31/2008	
 	 	 	 	 	 	 	
Equity in Income of Unconsolidated JVs	  	$	672	  	 	$	(1,985	) 	 	$	754	  	$	663	  	$	104	  	$	256	
 	 	 	 	 	 	 	
Add Back:	  	 	 	 	 	 	 	 	 	 	 	  	 	 	  	 	 	  	 	 	
Depreciation	  	 	344	  	 	 	367	  	 	 	367	  	 	359	  	 	1,437	  	 	1,483	
Amortization	  	 	101	  	 	 	103	  	 	 	102	  	 	102	  	 	408	  	 	717	
Impairment Charge	  	 	0	  	 	 	2,570	  	 	 	0	  	 	0	  	 	2,570	  	 	2,089	
General & Administrative Expense	  	 	71	  	 	 	56	  	 	 	7	  	 	31	  	 	165	  	 	183	
 	 	 	 	 	 	 	
Net Effect of SLR & FAS 141	  	 	(33	) 	 	 	59	  	 	 	46	  	 	37	  	 	109	  	 	199	
 	  	 	 	 	 	 	 	 	 	 	 	  	 	 	  	 	 	  	 	 	
NOI from Unconsolidated JVs	  	$	1,155	  	 	$	1,170	  	 	$	1,276	  	$	1,192	  	$	4,793	  	$	4,927	

29

Piedmont Office Realty Trust, Inc.
Supplemental Operating & Financial Data
Risks, Uncertainties and Limitations

Certain statements contained in this supplemental package constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We intend for all such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, as applicable. Such information is subject to certain risks and uncertainties, as well as known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of our performance in future periods. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “continue” or similar words or phrases that are predictions of future events or trends and which do not relate solely to historical matters.
The following are some of the factors that could cause the Company’s actual results and its expectations to differ materially from those described in the Company’s forward-looking statements: the Company’s ability to successfully identify and consummate suitable acquisitions; current adverse market and economic conditions, lease terminations or lease defaults, particularly by one of the Company’s large lead tenants, the impact of competition on the Company’s efforts to renew existing leases or re-let space, changes in the economies and other conditions of the office market in general and of the specific markets in which the Company operates, economic and regulatory changes, additional risks and costs associated with directly managing properties occupied by government tenants, the success of the Company’s real estate strategies and investment objectives, availability of financing, costs of complying with governmental laws and regulations, uncertainties associated with environmental and other regulatory matters; the Company’s ability to continue to qualify as a REIT under the Internal Revenue Code; and other factors detailed in our most recent Annual Report on Form 10-K and other documents we file with the Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this supplemental package. We cannot guarantee the accuracy of any such forward-looking statements contained in this supplemental package, and we do not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
 
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