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) November 10, 2010

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

Maryland
(State or Other Jurisdiction of Incorporation)

001-34626	 	58-2328421	
(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 November 10, 2010, Piedmont Office Realty Trust, Inc. (the “Registrant”) issued a press release announcing its financial results for the third quarter 2010 and published supplemental information for the third quarter 2010 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 exhibits 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 November 10, 2010.	
 	 	
99.2	  	Piedmont Office Realty Trust, Inc. Quarterly Supplemental Information for the Third Quarter 2010.	

 
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: November 10, 2010

 
EXHIBIT INDEX

Exhibit
No.	  	Description	
 	 	
99.1	  	Press release dated November 10, 2010.	
 	 	
99.2	  	Piedmont Office Realty Trust, Inc. Quarterly Supplemental Information for the Third Quarter 2010.	

Exhibit 99.1

Piedmont Office Realty Trust Reports Third Quarter Results
ATLANTA, November 10, 2010—Piedmont Office Realty Trust, Inc. (“Piedmont” or the “Company”) (NYSE:PDM), an owner of primarily Class A properties located predominantly in the ten largest U.S. office markets, today announced its results for the quarter ended September 30, 2010.
Highlights for the Three Months Ended September 30, 2010:
 
 	•	 	Achieved funds from operations (“FFO”) of $0.45 per diluted share compared to $0.21 per diluted share for the same quarter in 2009 and core funds from operations (“Core FFO”) of $0.45 per diluted share, which excludes impairment charges, as compared to $0.45 per diluted share in Core FFO for the quarter ended September 30, 2009.	
 
 	•	 	Increased same store net operating income 1.7 percent to $90.8 million for the quarter ended September 30, 2010 as compared to $89.4 million for the three months ended September 30, 2009.	
 
 	•	 	Leased over 600,000 square feet in the quarter, including approximately 587,000 square feet of office space at the Company’s 74 consolidated office properties.	
 
 	•	 	Completed the acquisition of a newly constructed 142,427 square foot Class A office building for $55 per square foot in Atlanta, GA.	
 
 	•	 	Subsequent to quarter end, completed the acquisition of two office buildings with approximately 384,000 combined square feet in Minneapolis, MN for $65.6 million.	
Donald A. Miller, CFA, President and Chief Executive Officer, stated, “We delivered strong third quarter operating results while also executing on our selective acquisition strategy. We continue to focus on attracting and retaining high quality tenants in long-term leases at our properties, and we signed approximately 587,000 square feet of office leases in our 74 consolidated office properties during the quarter. We believe that our high quality assets, the strength of our balance sheet, and our reputation as a reliable and well capitalized landlord give Piedmont an advantage in effectively competing for tenants. We have been patiently seeking the appropriate properties to expand our portfolio. Since the end of the second quarter, we have strategically deployed $73.5 million in three properties, enhancing our presence in key strategic markets.”
Results for the Third Quarter ended September 30, 2010
All prior period per share amounts have been retroactively restated to reflect the stockholder-approved recapitalization of our common stock. Current period per share amounts reflect the issuance of 13.8 million shares of common stock. Both the recapitalization and issuance of stock

occurred during the first quarter of 2010.
Piedmont’s net income available to common stockholders was $40.6 million, or $0.23 per diluted share, for the third quarter of 2010, compared with a net loss of $8.3 million or ($0.05) per diluted share for the third quarter of 2009. The net loss in the prior year period was the result of a $37.6 million in impairment charges recognized in the third quarter of 2009. The 2010 net income results reflected approximately $0.03 in dilution per share related to the issuance of 13.8 million shares of common stock during first quarter of 2010. FFO for the quarter totaled $77.9 million, or $0.45 per diluted share as compared to FFO of $32.8 million or $0.21 per diluted share for the quarter ended September 30, 2009. Core FFO, which excludes impairment charges, was $0.45 per diluted share for both the current and prior year quarters ended September 30. Adjusted FFO (“AFFO”) for the third quarter of 2010 totaled $61.5 million, or $0.36 per diluted share, as compared to $61.4 million, or $0.39 per diluted share, in the third quarter of 2009.
Revenues for the quarter ended September 30, 2010 totaled $145.5 million compared to $148.9 million in the same period a year ago. Property operating expenses of $46.6 million in the third quarter of 2010 declined 19 percent from $57.6 million in the third quarter of 2009. Operating revenues and expenses during the third quarter of 2010 included the previously indicated estimate of $4.2 million of termination fee income and $5.6 million in lower property tax expenses (net of lower tenant reimbursement revenue), respectively, which combined, contributed $0.06 per diluted share to third quarter 2010’s FFO. Same store net operating income for the quarter was $90.8 million, 1.7 percent higher than the $89.4 million for the third quarter ended 2009.
Leasing Update
During the third quarter of 2010, the Company executed over 600,000 square feet of leasing, including approximately 587,000 square feet of office leases in its consolidated office properties, spread throughout its markets. Roughly 389,000 square feet, or 66 percent, of the office leases were renewals and 198,000 square feet, or 34 percent, were new leases or expansion leases with existing tenants. As of September 30, 2010, the Company’s office portfolio was 89.0 percent leased with a weighted average lease term remaining of 5.6 years. The decrease in the leased percentage of the Company’s office portfolio from 89.8 percent as of June 30, 2010 to 89.0 percent as of September 30, 2010 was primarily related to the acquisition of a vacant 142,427 square foot building in the Atlanta market at the end of the quarter. Excluding our newly acquired building in Atlanta from consideration, the portfolio was 89.7 percent leased as of September 30, 2010. The Company is actively managing its upcoming lease expirations including several large 2011 and 2012 lease expirations.
Dividend
During the quarter ended September 30, 2010, the company paid a quarterly dividend in the amount of $0.315 per share for all classes of common stock.

 
Balance Sheet and Capital Markets Activities
As of September 30, 2010, Piedmont’s total gross real estate assets were $4.6 billion with total debt of $1.4 billion. The Company’s total debt-to-gross assets ratio at the end of the quarter was 26.6 percent and the quarter’s net debt (total debt less cash and cash equivalents) to annualized core EBITDA ratio was 3.5 times. The Company’s fixed charge coverage ratio was 5.5 times. As of September 30, 2010, Piedmont had cash and capacity on its unsecured credit line of approximately $554 million and no debt maturities in 2010. As previously announced, Piedmont has entered into a binding purchase and sale agreement to sell its 111 Sylvan Avenue property in New Jersey for $55.0 million and the transaction is expected to close in December 2010.
Acquisitions
Piedmont acquired one Class A office building during the quarter in the Atlanta market. The acquired property was Suwanee Gateway One, a five-story, 142,427 square foot building located in the I-85 corridor of northeastern metropolitan Atlanta. The Company acquired the building for approximately $7.9 million, or $55 per square foot. The building was constructed to meet LEED Silver standards and is available for lease.
Subsequent to Quarter End
Acquisitions and Dispositions
The company purchased, for $65.6 million, two Class A eight-story office buildings (the “Meridian Crossings Buildings”) containing approximately 384,000 combined rentable square feet and located in the Minneapolis, MN market. The Meridian Crossings Buildings, which were completed in 1997 and 1998, are primarily leased through 2023 to U.S. Bancorp, an existing tenant within the Piedmont portfolio. The two buildings combined are approximately 96 percent leased.
Piedmont, along with its joint venture partners, completed the sale of a property, 14400 Hertz Quail Springs Parkway in Oklahoma City, Oklahoma for $5.3 million, of which Piedmont’s proportionate share was approximately 4 percent.
Share Conversion
On November 7, 2010, all of Piedmont’s 39.7 million shares of Class B-2 common stock converted to Class A common stock. The final tranche of Class B common stock is scheduled to convert to Class A common stock on January 30, 2011.

 
Dividend
On November 9, 2010, the Board of Directors of Piedmont declared dividends for the fourth quarter of 2010 in the amount of $0.315 per share on all classes of outstanding common shares of Piedmont to stockholders of record as of the close of business on December 1, 2010. Such dividends are to be paid on December 15, 2010.
Guidance for 2010
The Company is adjusting its financial guidance for full-year 2010 to the upper end of its previously announced range based upon management’s expectations as follows:

 	  	Low	 	 	 	 	 	High	 	
Core FFO in millions (excludes impairment charges)	  	$	275	  	 	 	–	  	 	$	282	  	
Core FFO per diluted share (excludes impairment charges)	  	$	1.61	  	 	 	–	  	 	$	1.65	  	
Note that individual quarters may fluctuate on both a cash basis and an accrual basis due to timing of repairs and maintenance, capital expenditures and one-time revenue or expense events. In addition, the Company’s guidance is based on information available to management as of the date of this release.
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 below for definitions and reconciliations of these metrics to their most comparable GAAP metric.
Conference Call Information
Piedmont has scheduled a conference call and an audio webcast for Thursday, November 11, 2010 at 10:00 A.M. Eastern Time. Dial-in numbers are (877) 407-9039 for participants in the United States and (201) 689-8470 for international participants. The conference identification number is 358815. The live audio webcast of the call may be accessed on the Company’s website at www.piedmontreit.com in the Investor Relations section. A replay of the conference call will be available until Thursday, November 25, 2010, and can be accessed by dialing (877) 870-5176, or (858) 384-5517 for international participants, followed by passcode 358815. A webcast replay will also be available after the conference call in the Investor Relations section of the Company’s website. During the audio webcast and conference call, the Company’s management team will review third quarter 2010 performance, discuss recent events, and conduct a question-and-answer period.

 
Supplemental Information
Quarterly Supplemental Information as of and for the three and nine months ended September 30, 2010 can be accessed on the Company’s website under the Investor Relations section at www.piedmontreit.com.
About Piedmont Office Realty Trust
Piedmont Office Realty Trust, Inc. is a fully-integrated 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 predominantly in large U.S. office markets and leased principally to high-credit-quality tenants. Since its first acquisition in 1998, the Company has acquired approximately $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.
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 quality of the Company’s assets; the strength of the Company’s balance sheet; anticipated leasing portfolio and lease renewal activities; the consummation of the transaction to sell 111 Sylvan Avenue building; the Company’s leasing prospects; and the Company’s estimated range of Core FFO and Core FFO per diluted share 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; adverse market and economic conditions and related impairments to the Company’s assets, including, but not limited to, receivables, real estate assets and other intangible assets; 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; the impact of outstanding or potential litigation; and other factors detailed in our most recent Annual Report on Form 10-K , our Quarterly Report on Form 10-Q as of and for the period ended September 30, 2010, 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.
CONTACT:
Piedmont Office Realty Trust
Eddie Guilbert
770-418-8592
research.analysts@piedmontreit.com
Transfer Agent and Investor Relations
800-557-4830
investor.services@piedmontreit.com
ICR Inc.
Evelyn Infurna
203-682-8346
Evelyn.infurna@icrinc.com

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

 
 	 	 	 	 	 	 	 	 	
 	  	September 30, 2010	 	 	December 31, 2009	 	
Assets:	  	 	 	 	 	 	 	 	
Real estate assets, at cost:	  	 	 	 	 	 	 	 	
Land	  	$	642,072	  	 	$	641,073	  	
Buildings and improvements	  	 	3,630,011	  	 	 	3,600,406	  	
Buildings and improvements, accumulated depreciation	  	 	(727,307	) 	 	 	(653,839	) 	
Intangible lease asset	  	 	222,952	  	 	 	243,312	  	
Intangible lease asset, accumulated amortization	  	 	(145,139	) 	 	 	(147,043	) 	
Construction in progress	  	 	11,839	  	 	 	17,059	  	
Real estate assets held for sale, gross	  	 	66,748	  	 	 	73,788	  	
Real estate assets held for sale, accumulated depreciation and amortization	  	 	(11,748	) 	 	 	(11,229	) 	
 	  	 	 	 	 	 	 	 	
Total real estate assets	  	 	3,689,428	  	 	 	3,763,527	  	
 	 	 	
Investment in unconsolidated joint ventures	  	 	42,591	  	 	 	43,940	  	
Cash and cash equivalents	  	 	67,539	  	 	 	10,004	  	
Tenant receivables, net of allowance for doubtful accounts	  	 	29,269	  	 	 	33,071	  	
Straight line rent receivable	  	 	100,686	  	 	 	95,016	  	
Notes receivable	  	 	60,671	  	 	 	58,739	  	
Due from unconsolidated joint ventures	  	 	1,085	  	 	 	1,083	  	
Prepaid expenses and other assets	  	 	36,802	  	 	 	21,456	  	
Goodwill	  	 	180,097	  	 	 	180,097	  	
Deferred financing costs, less accumulated amortization	  	 	5,878	  	 	 	7,205	  	
Deferred lease costs, less accumulated amortization	  	 	175,474	  	 	 	180,832	  	
Other assets held for sale	  	 	65	  	 	 	375	  	
 	  	 	 	 	 	 	 	 	
Total assets	  	$	4,389,585	  	 	$	4,395,345	  	

Liabilities:	  	 	 	 	 	 	 	 	
Line of credit and notes payable	  	$	1,402,525	  	 	 	1,516,525	  	
Accounts payable, accrued expenses, and accrued capital expenditures	  	 	99,872	  	 	 	97,747	  	
Deferred income	  	 	33,882	  	 	 	34,506	  	
Intangible lease liabilities, less accumulated amortization	  	 	51,807	  	 	 	60,655	  	
Interest rate swap	  	 	1,028	  	 	 	3,866	  	
Other liabilities held for sale	  	 	2,539	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	
Total liabilities	  	 	1,591,653	  	 	 	1,713,299	  	
 	 	 	
Redeemable common stock	  	 	—  	  	 	 	75,164	  	
 	 	 	
Stockholders’ equity :	  	 	 	 	 	 	 	 	
Class A common stock	  	 	932	  	 	 	397	  	
Class B-1 common stock	  	 	—  	  	 	 	397	  	
Class B-2 common stock	  	 	397	  	 	 	397	  	
Class B-3 common stock	  	 	397	  	 	 	398	  	
Additional paid in capital	  	 	3,660,551	  	 	 	3,477,168	  	
Cumulative distributions in excess of earnings	  	 	(869,434	) 	 	 	(798,561	) 	
Redeemable common stock	  	 	—  	  	 	 	(75,164	) 	
Other comprehensive loss	  	 	(1,028	) 	 	 	(3,866	) 	
 	  	 	 	 	 	 	 	 	
Piedmont stockholders’ equity	  	 	2,791,815	  	 	 	2,601,166	  	
Non-controlling interest	  	 	6,117	  	 	 	5,716	  	
 	  	 	 	 	 	 	 	 	
Total stockholders’ equity	  	 	2,797,932	  	 	 	2,606,882	  	
 	  	 	 	 	 	 	 	 	
Total liabilities, redeemable common stock and stockholders’ equity	  	$	4,389,585	  	 	$	4,395,345	  	

Net Debt (Total debt less cash and cash equivalents)	  	$	1,334,986	  	 	$	1,506,521	  	
Total Gross Assets (1)	  	$	5,273,779	  	 	$	5,207,456	  	
 
(1)	Total assets exclusive of accumulated depreciation and amortization related to real estate assets.	

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

 	  	Three Months Ended	 	 	Nine Months Ended	 	
 	  	9/30/2010	 	 	9/30/2009	 	 	9/30/2010	 	 	9/30/2009	 	
Revenues:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental income	  	$	110,776	  	 	$	111,280	  	 	$	331,910	  	 	$	333,032	  	
Tenant reimbursements	  	 	29,690	  	 	 	36,922	  	 	 	98,147	  	 	 	113,085	  	
Property management fee revenue	  	 	806	  	 	 	742	  	 	 	2,265	  	 	 	2,183	  	
Other rental income	  	 	4,230	  	 	 	—  	  	 	 	5,205	  	 	 	782	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	145,502	  	 	 	148,944	  	 	 	437,527	  	 	 	449,082	  	
 	 	 	 	 	
Operating expenses:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property operating costs	  	 	46,612	  	 	 	57,592	  	 	 	157,470	  	 	 	173,308	  	
Depreciation	  	 	26,011	  	 	 	26,403	  	 	 	77,285	  	 	 	77,815	  	
Amortization	  	 	11,018	  	 	 	13,991	  	 	 	33,409	  	 	 	41,127	  	
General and administrative	  	 	6,806	  	 	 	5,656	  	 	 	21,378	  	 	 	21,097	  	
Impairment loss on real estate assets	  	 	—  	  	 	 	35,063	  	 	 	—  	  	 	 	35,063	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses	  	 	90,447	  	 	 	138,705	  	 	 	289,542	  	 	 	348,410	  	

Real estate operating income	  	 	55,055	  	 	 	10,239	  	 	 	147,985	  	 	 	100,672	  	
 	 	 	 	 	
Other income (expense):	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest expense	  	 	(17,359	) 	 	 	(19,518	) 	 	 	(55,383	) 	 	 	(58,255	) 	
Interest and other income	  	 	993	  	 	 	1,989	  	 	 	2,998	  	 	 	3,798	  	
Equity in income of unconsolidated joint ventures	  	 	619	  	 	 	(1,985	) 	 	 	2,003	  	 	 	(568	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total other income (expense)	  	 	(15,747	) 	 	 	(19,514	) 	 	 	(50,382	) 	 	 	(55,025	) 	

Income from continuing operations	  	 	39,308	  	 	 	(9,275	) 	 	 	97,603	  	 	 	45,647	  	
 	 	 	 	 	
Operating income, excluding impairment loss	  	 	1,434	  	 	 	1,136	  	 	 	4,072	  	 	 	3,466	  	
Impairment loss	  	 	—  	  	 	 	—  	  	 	 	(9,587	) 	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Discontinued operations	  	 	1,434	  	 	 	1,136	  	 	 	(5,515	) 	 	 	3,466	  	

Net income	  	 	40,742	  	 	 	(8,139	) 	 	 	92,088	  	 	 	49,113	  	
 	 	 	 	 	
Less: Net income attributable to noncontrolling interest	  	 	(158	) 	 	 	(121	) 	 	 	(409	) 	 	 	(359	) 	

Net income attributable to Piedmont	  	$	40,584	  	 	$	(8,260	) 	 	$	91,679	  	 	$	48,754	  	

Weighted average common shares outstanding - diluted	  	 	172,885	  	 	 	157,603	  	 	 	170,257	  	 	 	158,624	  	
 	 	 	 	 	
Net income per share available to common stockholders - diluted	  	$	0.23	  	 	$	(0.05	) 	 	$	0.54	  	 	$	0.31	  	

Reconciliation of Net Income Excluding Impairment Charges:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	
Net income attributable to Piedmont	  	$	40,584	  	 	$	(8,260	) 	 	 	 	 	 	 	 	 	
Impairment losses on consolidated properties	  	 	—  	  	 	 	35,063	  	 	 	 	 	 	 	 	 	
Impairment losses from unconsolidated JVs	  	 	53	  	 	 	2,570	  	 	 	 	 	 	 	 	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income available to stockholders, exclusive of impairment charges	  	$	40,637	  	 	$	29,373	  	 	 	 	 	 	 	 	 	

Weighted average common shares outstanding - diluted	  	 	172,885	  	 	 	157,603	  	 	 	 	 	 	 	 	 	
 	 	 	 	 	
Net income per share available to stockholders, exclusive of impairment
charges - diluted	  	$	0.24	  	 	$	0.19	  	 	 	 	 	 	 	 	 	

 
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	 	 	Six Months Ended	 	
 	  	9/30/2010	 	 	9/30/2009	 	 	9/30/2010	 	 	9/30/2009	 	
Net income attributable to Piedmont	  	$	40,584	  	 	$	(8,260	) 	 	$	91,679	  	 	$	48,754	  	
 	 	 	 	 	
Depreciation(1) (2)	  	 	26,163	  	 	 	27,004	  	 	 	78,285	  	 	 	79,614	  	
Amortization(1)	  	 	11,119	  	 	 	14,094	  	 	 	33,711	  	 	 	41,434	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Funds from operations	  	 	77,866	  	 	 	32,838	  	 	 	203,675	  	 	 	169,802	  	
 	 	 	 	 	
Impairment loss on real estate assets(1)	  	 	53	  	 	 	37,633	  	 	 	9,641	  	 	 	37,633	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core funds from operations	  	 	77,919	  	 	 	70,471	  	 	 	213,316	  	 	 	207,435	  	
 	 	 	 	 	
Depreciation of non real estate assets	  	 	176	  	 	 	155	  	 	 	533	  	 	 	461	  	
Stock-based and other non-cash compensation expense	  	 	1,095	  	 	 	671	  	 	 	2,458	  	 	 	2,506	  	
Deferred financing cost amortization	  	 	607	  	 	 	696	  	 	 	2,000	  	 	 	2,090	  	
Straight-line effects of lease revenue(1)	  	 	(2,921	) 	 	 	(847	) 	 	 	(2,632	) 	 	 	622	  	
Amortization of lease-related intangibles(1)	  	 	(1,510	) 	 	 	(1,283	) 	 	 	(4,461	) 	 	 	(3,736	) 	
Income from amortization of discount on purchase of mezzanine loans	  	 	(569	) 	 	 	(648	) 	 	 	(1,932	) 	 	 	(1,944	) 	
Non-incremental capital expenditures(3)	  	 	(13,329	) 	 	 	(7,851	) 	 	 	(31,712	) 	 	 	(26,478	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted funds from operations	  	$	61,468	  	 	$	61,364	  	 	$	177,570	  	 	$	180,956	  	

Weighted average common shares outstanding - diluted	  	 	172,885	  	 	 	157,603	  	 	 	170,257	  	 	 	158,624	  	
 	 	 	 	 	
Funds from operations per share (diluted)	  	$	0.45	  	 	$	0.21	  	 	$	1.20	  	 	$	1.07	  	
Core funds from operations per share (diluted)	  	$	0.45	  	 	$	0.45	  	 	$	1.25	  	 	$	1.31	  	
Adjusted funds from operations per share (diluted)	  	$	0.36	  	 	$	0.39	  	 	$	1.04	  	 	$	1.14	  	
 
(1)	Includes adjustments for wholly-owned properties and for our proportionate ownership in unconsolidated joint ventures.	
(2)	Excludes depreciation of non real estate assets.	
(3)	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, adding back 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.

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	 	Nine Months Ended	 	
 	  	9/30/2010	 	 	9/30/2009	 	 	9/30/2010	 	 	9/30/2009	 	
Net income attributable to Piedmont	  	$	40,584	  	 	$	(8,260	) 	 	$	91,679	  	 	$	48,754	  	
 	 	 	 	 	
Net income attributable to non-controlling interest	  	 	158	  	 	 	121	  	 	 	409	  	 	 	359	  	
Interest Expense	  	 	17,359	  	 	 	19,518	  	 	 	55,383	  	 	 	58,255	  	
Depreciation	  	 	26,339	  	 	 	27,159	  	 	 	78,818	  	 	 	80,075	  	
Amortization	  	 	11,119	  	 	 	14,094	  	 	 	33,711	  	 	 	41,434	  	
Impairment loss on real estate assets	  	 	53	  	 	 	37,633	  	 	 	9,641	  	 	 	37,633	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core EBITDA*	  	 	95,612	  	 	 	90,265	  	 	 	269,641	  	 	 	266,510	  	
 	 	 	 	 	
General & administrative expenses	  	 	7,001	  	 	 	5,757	  	 	 	21,690	  	 	 	21,262	  	
Management fee revenue	  	 	(806	) 	 	 	(742	) 	 	 	(2,265	) 	 	 	(2,183	) 	
Interest and other income	  	 	(993	) 	 	 	(1,989	) 	 	 	(2,998	) 	 	 	(3,798	) 	
Lease termination income	  	 	(4,230	) 	 	 	—  	  	 	 	(5,205	) 	 	 	(782	) 	
Lease termination expense - straight line rent & acquisition intangibles write-offs	  	 	131	  	 	 	627	  	 	 	876	  	 	 	801	  	
Straight line rent adjustment	  	 	(3,053	) 	 	 	(1,508	) 	 	 	(3,508	) 	 	 	(190	) 	
Net effect of amortization of below-market in-place lease intangibles	  	 	(1,510	) 	 	 	(1,249	) 	 	 	(4,461	) 	 	 	(3,727	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core net operating income (Cash basis)*	  	 	92,152	  	 	 	91,161	  	 	 	273,770	  	 	 	277,893	  	
 	 	 	 	 	
Acquisitions	  	 	2	  	 	 	—  	  	 	 	2	  	 	 	—  	  	
Industrial properties	  	 	(91	) 	 	 	(638	) 	 	 	(456	) 	 	 	(1,920	) 	
Unconsolidated joint ventures	  	 	(1,217	) 	 	 	(1,171	) 	 	 	(3,670	) 	 	 	(3,637	) 	

Same Store NOI*	  	$	90,846	  	 	$	89,352	  	 	$	269,646	  	 	$	272,336	  	

Year over year change in same store NOI	  	 	1.7	% 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	
Fixed Charge Coverage Ratio (Core EBITDA/ Interest Expense)(1)	  	 	5.5	  	 	 	 	 	 	 	 	 	 	 	 	 	
Annualized Core EBITDA (Core EBITDA x 4)	  	$	382,448	  	 	 	 	 	 	 	 	 	 	 	 	 	
 
(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 other GAAP basis liquidity measures. 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 real estate operating income with the add-back of corporate general and administrative expense, depreciation and amortization, and casualty and impairment losses and the deduction of income and expense associated with lease terminations and income associated with property management performed by Piedmont for other organizations. 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 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.

Exhibit 99.2

Quarterly Supplemental Information
September 30, 2010

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	  	 	 	 	
Balance Sheet	  	 	9	  	
Income Statements	  	 	10-11	  	
Funds From Operations / Adjusted Funds From Operations	  	 	12	  	
Same Store Analysis	  	 	13-14	  	
Capitalization Analysis	  	 	15	  	
Debt Summary	  	 	16	  	
Debt Detail	  	 	17	  	
Debt Analysis	  	 	18	  	
 	 	
Operational & Portfolio Information - Office Investments	  	 	 	 	
Tenant Diversification	  	 	19	  	
Tenant Credit Rating & Lease Distribution Information	  	 	20	  	
Leasing Activity	  	 	21	  	
Lease Expiration Schedule	  	 	22	  	
Annual Lease Expirations	  	 	23	  	
Capital Expenditures & Commitments	  	 	24	  	
Contractual Tenant Improvements & Leasing Commissions	  	 	25	  	
Geographic Diversification	  	 	26	  	
Industry Diversification	  	 	27	  	
 	 	
Other Investments	  	 	 	 	
Other Investments Detail	  	 	28	  	
 	 	
Supporting Information	  	 	 	 	
Definitions	  	 	29-30	  	
Research Coverage	  	 	31	  	
Non-GAAP Reconciliations	  	 	32-35	  	
Risks, Uncertainties and Limitations	  	 	36	  	
Please refer to page 36 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 supplemental reporting package might not occur.
Certain prior period amounts have been reclassified to conform to the current period financial statement presentation. In addition, many of the schedules herein contain rounding to the nearest thousands or millions and, therefore, the schedules may not total due to this rounding convention.

 
Piedmont Office Realty Trust, Inc.
Corporate Data

Piedmont Office Realty Trust, Inc. (“Piedmont” or the “Company”) (NYSE: PDM) is a fully-integrated 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 predominately in large U.S. office markets and leased principally to high-credit-quality tenants. Since its first acquisition in 1998, the Company has acquired through September 30, 2010 approximately $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. Approximately 83% of our Annualized Lease Revenue (“ALR”) (1)  is derived from our office properties located within the ten largest U.S. office markets, including 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
September 30, 2010	 	 	As of
December 31, 2009	 	
Number of properties(2)	  	 	74	  	 	 	73	  	
Rentable square footage (in thousands)(2)	  	 	20,429	  	 	 	20,229	  	
Percent leased(3)	  	 	89.0	% 	 	 	90.1	% 	
Capitalization (in thousands):	  	 	 	 	 	 	 	 	
Total debt	  	$	1,402,525	  	 	$	1,516,525	  	
Equity market capitalization(4)	  	$	3,264,972	  	 	$	N/A	  	
Total market capitalization(4)	  	$	4,667,497	  	 	$	N/A	  	
Debt / Total market capitalization(4)	  	 	30.0	% 	 	 	N/A	  	
Common stock data	  	 	 	 	 	 	 	 	
High closing price during quarter(4)	  	$	18.93	  	 	$	N/A	  	
Low closing price during quarter(4)	  	$	17.09	  	 	$	N/A	  	
Closing price of Class A common stock at period end(4)	  	$	18.91	  	 	$	N/A	  	
Weighted average fully diluted shares outstanding (in thousands)(5) (6)	  	 	170,257	  	 	 	158,581	  	
Shares of common stock issued and outstanding (in thousands)(6)	  	 	172,658	  	 	 	158,917	  	
Rating / outlook	  	 	 	 	 	 	 	 	
Standard & Poor’s	  	 	BBB / Stable	  	 	 	BBB / Stable	  	
Moody’s	  	 	Baa2 / Stable	  	 	 	Baa3 / Positive	  	
Employees(7)	  	 	110	  	 	 	107	  	
 
(1)	The definition for Annualized Lease Revenue can be found on page 29.	
(2)	Our office portfolio currently consists of 74 properties (exclusive of our equity interests in eight properties owned through unconsolidated joint ventures and our two industrial properties). We acquired one newly-built, vacant building totaling approximately 142,000 square feet during the third quarter of 2010. On October 1, 2010, we acquired Meridian Crossings, two buildings comprised of 384,000 square feet and 96% leased; statistical information for Meridian Crossings is not included in our portfolio information as of September 30, 2010 presented herein.	
(3)	Calculated as leased square footage on September 30, 2010 plus square footage associated with new leases signed for currently vacant spaces divided by total rentable square footage, expressed as a percentage. This measure is presented for our 74 office properties and excludes industrial and unconsolidated joint venture properties. On September 28, 2010, we acquired one building totaling approximately 142,000 square feet that is currently vacant; if we excluded this building from consideration for consistent comparison to prior periods, our percent leased would be 89.7%, as compared to 89.8% at June 30, 2010.	
(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. As of September 30, 2010, our Class B-2 and Class B-3 common stock (collectively, our “Class B common stock”) were not listed on a national securities exchange and there was no established market for such shares. We have used the closing price of the Class A common stock at the relevant period end for the purposes of the calculations regarding market capitalization herein.	
(5)	Weighted average fully diluted shares outstanding are presented on a year-to-date basis for each period.	
(6)	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. The recapitalization had the effect of a one-for-three reverse stock split. Prior period share and per share information in this report has been restated to reflect this recapitalization.	
(7)	During the second quarter of 2010, the company opened a regional office in Boston. The opening of that office is the primary reason for the increase in number of employees.	
 
3

 
Piedmont Office Realty Trust, Inc.
Investor Information

Corporate

11695 Johns Creek Parkway, 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 September 30, 2010

On January 22, 2010, we filed an amendment to our charter to effect a recapitalization of our common stock as described further in our Securities and Exchange Commission (“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. Prior period share and per share information in this report has been restated to reflect this recapitalization. Class B-1 common stock converted automatically into Class A common stock on August 9, 2010; Class B-2 common stock converted subsequent to quarter end into Class A common stock on November 7, 2010; and Class B-3 common stock will convert to Class A common stock on January 30, 2011.
Financial Results (1)
 
 	-	 	Funds from operations (FFO) for the quarter ended September 30, 2010 was $77.9M, or $0.45 per share (diluted), compared to $32.8M, or $0.21 per share (diluted), for the same quarter in 2009. FFO for the nine months ended September 30, 2010 was $203.7M, or $1.20 per share (diluted), compared to $169.8M, or $1.07 per share (diluted), for the same period in 2009. The increase in FFO from 2009 to 2010 was primarily due to the recognition of a $53,000 impairment charge associated with one joint venture interest in 2010 as compared to the recognition of $37.6M in impairment charges on three wholly-owned properties and one joint venture interest in the third quarter of 2009. Additionally, lower property operating expenses in 2010 driven primarily by lower property taxes contributed to the year-over-year increase.	
 
 	-	 	Core funds from operations (Core FFO) for the quarter ended September 30, 2010 was $77.9M, or $0.45 per share (diluted), compared to $70.5M, or $0.45 per share (diluted), for the same quarter in 2009. Core FFO for the nine months ended September 30, 2010 was $213.3M, or $1.25 per share (diluted), compared to $207.4M, or $1.31 per share (diluted), for the same period in 2009. The increase in Core FFO for the three months and the nine months ended September 30, 2010 as compared to the same periods in 2009 was primarily due to lower property taxes, partially offset by lower tenant reimbursements. The decrease in Core FFO per share for the nine months ended September 30, 2010 as compared to the same period in 2009 was primarily due to the dilutive effect of the 13.8 million shares of Class A common stock issued when the Company listed on the NYSE in February 2010.	
 
 	-	 	Adjusted funds from operations (AFFO) for the quarter ended September 30, 2010 was $61.5M, or $0.36 per share (diluted), compared to $61.4M, or $0.39 per share (diluted), for the same quarter in 2009. AFFO for the nine months ended September 30, 2010 was $177.6M, or $1.04 per share (diluted), compared to $181.0M, or $1.14 per share (diluted), for the same period in 2009. AFFO for the quarter ended September 30, 2010 was similar to that of 2009; while capital expenditures were higher in 2010 as a result of new leasing activity, property operating expenses were lower as described above. The decrease in AFFO for the nine months ended September 30, 2010 as compared to that of 2009 was primarily due to increased capital expenditures and greater straight line rent adjustments in 2010, partially offset by lower property operating expenses. The AFFO per share results are also lower due to the dilutive effect of the 13.8 million shares of Class A common stock issued when the Company listed on the NYSE in February 2010.	
 
 	-	 	During the quarter ended September 30, 2010, the Company paid to stockholders a quarterly dividend in the amount of $0.315 per share for all classes of common stock. The Company’s dividend payout percentage for the nine months ended September 30, 2010 was 76.2% of Core FFO and 91.5% of AFFO.	
 
Operations
 
 	-	 	On a square footage basis, our portfolio was 89.0% leased as of September 30, 2010 as compared to 89.8% and 90.1% at June 30, 2010 and December 31, 2009, respectively. The decrease in the office portfolio leased percentage during the quarter is primarily related to the acquisition of a vacant 142,000 square foot building in the Atlanta market at the end of the quarter. Excluding the newly acquired building from consideration, the portfolio would have been 89.7% leased as of September 30, 2010, with leased square footage decreasing approximately 6,000 square feet from the previous quarter end. The decrease in leased percentage since the prior year end is primarily due to 99,000 square feet being vacated in January 2010 by Kirkland & Ellis in Chicago and the newly acquired vacant building in the Atlanta market.	
 
 	-	 	The weighted average remaining lease term of our portfolio was 5.6 years(2) as of September 30, 2010 as compared to 5.9 years at December 31, 2009.	
 
 	-	 	As noted in our December 31, 2009 Quarterly Supplemental Information, 6.8% of our Annualized Lease Revenue was set to expire in 2010 and a majority of this expiration was to take place in the fourth quarter. During the three months ended September 30, 2010, the Company completed 587,000 square feet of office leasing at our 74 consolidated office properties. We executed renewal leases for 389,000 square feet and new tenant leases for 198,000 square feet, bringing the year-to-date total office leasing activity to 1,325,000 square feet, with an average committed capital cost of $3.50 per square foot per year of lease term. From an industrial leasing perspective, we did not execute any new leases during the quarter, maintaining the same year-to-date total industrial leasing activity of 487,000 square feet with an average committed capital cost of $0.21 per square foot per year of lease term.	
 
(1)	FFO, Core FFO and AFFO are supplemental non-GAAP financial measures. See pages 29-30 for definitions of non-GAAP financial measures. See pages 12 and 34 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 September 30, 2010) is weighted based on Annualized Lease Revenue, as defined on page 29.	
 
5

Piedmont Office Realty Trust, Inc.
Financial Highlights
As of September 30, 2010

 
 	-	 	During the three months ended September 30, 2010, we retained tenants for 74% of the square footage associated with expiring leases. During the nine months ended September 30, 2010, we retained tenants for 76% of the square footage associated with expiring leases. These results compare to a 78% retention rate for the year ended December 31, 2009.	
 
 	-	 	During the three months ended September 30, 2010, we executed six office leases greater than 20,000 square feet. Please see information on those leases listed below.	

Tenant Name	  	Property	  	Property Location	  	Square Feet
Leased	 	  	Expiration Year	 	  	Lease Type	
Intuit	  	5601 Headquarters Drive	  	Plano, TX	  	 	166,238	  	  	 	2026	  	  	Renewal	
International Business Machines	  	Deschutes	  	Beaverton, OR	  	 	73,405	  	  	 	2012	  	  	Renewal	
Starcom MediaVest	  	150 West Jefferson	  	Detroit, MI	  	 	62,273	  	  	 	2020	  	  	Renewal / Contraction	
Futurewei Technologies	  	400 Bridgewater Crossing	  	Bridgewater, NJ	  	 	38,318	  	  	 	2017	  	  	New	
United States of America (IRS)	  	5000 Corporate Court	  	Holtsville, NY	  	 	37,601	  	  	 	2021	  	  	New	
Austin Building & Design	  	EastPoint II	  	Mayfield Heights, OH	  	 	21,869	  	  	 	2020	  	  	Renewal	
Leasing Update
 
 	-	 	A total of seven leases are scheduled to expire during the fourth quarter of 2010 or during the years 2011 and 2012 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	 	  	Percentage  of
Annualized
Lease
Revenue (%)	 	 	Expiration  (1)	 	  	Leasing Status	
Citicorp	  	111 Sylvan Avenue	  	Englewood Cliffs, NJ	  	 	409,604	  	  	 	1.2	% 	 	 	Q4 2010	  	  	Discussions with the current tenant have ceased because the property is under contract to be sold in December 2010.	
 	 	 	 	 	 	 	
United States of America (Comptroller of the Currency)	  	One Independence
Square	  	Washington, D.C.	  	 	322,984	  	  	 	3.1	% 	 	 	Q2 2011	  	  	The Company is in discussions with the current tenant for a lease renewal of the entire space.	
 	 	 	 	 	 	 	
Zurich American Insurance Company	  	Windy Point II	  	Schaumburg, IL	  	 	300,034	  	  	 	1.9	% 	 	 	Q3 2011	  	  	Space has been substantially sublet by the tenant. The Company is in discussions with sublessees for direct leases and actively marketing the space for lease.	
 	 	 	 	 	 	 	
Kirkland & Ellis	  	Aon Center	  	Chicago, IL	  	 	331,887	  	  	 	1.8	% 	 	 	Q4 2011	  	  	Kirkland & Ellis is vacating; 260,641 SF of the space associated with their lease has been relet to KPMG beginning in August 2012.	
 	 	 	 	 	 	 	
Sanofi-aventis US	  	200 Bridgewater
Crossing	  	Bridgewater, NJ	  	 	297,379	  	  	 	2.0	% 	 	 	Q1 2012	  	  	Discussions with the current tenant have not yet commenced.	
 	 	 	 	 	 	 	
United States of America (NASA)	  	Two Independence
Square	  	Washington, D.C.	  	 	551,907	  	  	 	4.5	% 	 	 	Q3 2012	  	  	The Company is in discussions with the current tenant for a lease renewal of the entire space.	
 	 	 	 	 	 	 	
United States of America (National Park Service)	  	1201 Eye Street	  	Washington, D.C.	  	 	219,750	  	  	 	1.7	% 	 	 	Q3 2012	  	  	Discussions with the current tenant have not yet commenced.	
 
(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 September 30, 2010

Financing and Capital Activity
 
 	-	 	As of September 30, 2010, our ratio of debt to total market capitalization was 30.0%; our ratio of debt to gross real estate assets was 30.7%; and our ratio of debt to total gross assets was 26.6%.	
 
 	-	 	On May 5, 2010, Piedmont entered into a binding contract to sell the 111 Sylvan Avenue property in Englewood Cliffs, NJ. The purchaser has completed its due diligence study of the asset and its deposit of 10% of the agreed upon purchase price of $55 million is non-refundable. The transaction is scheduled to close in December 2010, which will allow Piedmont to recognize the cash flow of the existing lease with Citicorp through its current expiration in November 2010. Piedmont has reclassified 111 Sylvan Avenue from real estate assets held-for-use to real estate assets held-for-sale as of May 5, 2010. During the second quarter of 2010, Piedmont recorded a $9.6 million impairment charge as a result of adjusting the asset to estimated fair value. The results from operations for the asset are now presented in discontinued operations.	
 
 	-	 	During the third quarter of 2010, Piedmont purchased Suwanee Gateway One, a 142,000 square foot building located in the Interstate 85 North corridor of the northeastern Atlanta, GA market. The building was built in 2008 and is not currently leased. Piedmont purchased the building from the former lender for approximately $55 per square foot. The building is well located adjacent to one of Atlanta's major interstate highways. Given the location, management's knowledge of the market, the new construction, and the low cost basis, Piedmont believes the transaction provides a good value-add opportunity in an opportunistic market.	
 
 	-	 	During the third quarter of 2010, Piedmont entered into a binding agreement to purchase Meridian Crossings, two buildings totaling 384,000 square feet in suburban Minneapolis, MN. The buildings are well located at the intersection of Interstates 35W and 494 and were constructed in 1997 and 1998. The tenant of approximately 88% of the total square footage in both buildings is U.S. Bancorp, a tenant with which Piedmont has significant existing business relationships. U.S. Bancorp's lease extends through 2023. Piedmont completed the purchase of Meridian Crossings subsequent to quarter end; therefore, statistical information presented herein as of September 30, 2010 does not include the Meridian Crossings buildings.	
 
 	-	 	On September 24, 2010, Piedmont, along with its joint venture partners, entered into a binding agreement to sell 14400 Hertz Quail Springs Parkway, a 57,000 square foot building in Oklahoma City, OK. The building is leased through 2015 to business communications firm Avaya. Approximately 10% of the agreed upon purchase price of $5.3 million was non-refundable as of the end of the third quarter of 2010. The sale of the property was completed subsequent to quarter end. Piedmont’s ownership in the property was approximately 4%.	
 
 	-	 	On August 9, 2010, all of Piedmont's 39.7 million shares of Class B-1 common stock converted to Class A common stock.	
Subsequent Events
 
 	-	 	On October 1, 2010, Piedmont completed the purchase of Meridian Crossings in suburban Minneapolis, MN.	
 
 	-	 	On October 15, 2010, Piedmont completed the sale of one joint venture property, 14400 Hertz Quail Springs Parkway in Oklahoma City, OK.	
 
 	-	 	On November 7, 2010, all of Piedmont's 39.7 million shares of Class B-2 common stock converted to Class A common stock.	
 
 	-	 	On November 9, 2010, the board of directors of Piedmont declared dividends for the fourth quarter of 2010 in the amount of $0.315 per share on all classes of outstanding common shares of Piedmont to stockholders of record as of the close of business on December 1, 2010. The dividends are payable on December 15, 2010.	
Guidance for 2010
 
 	-	 	The Company is adjusting its financial guidance for full-year 2010 to the upper end of its previously announced range based upon management’s expectations as follows:	

 	  	Low	 	  	High	 	
Core Funds from Operations (excludes impairment charges)	  	$275	  	 	-	  	  	 	282 million	  	
Core Funds from Operations per diluted share (excludes impairment charges)	  	$1.61	  	 	-	  	  	 	1.65	  	
Our $9.6 million impairment charge on the 111 Sylvan Avenue property does not have an impact on our reported Core FFO, but it does impact FFO as originally estimated by roughly $0.055 per share. The opportunity to sell 111 Sylvan Avenue was not contemplated in our original FFO guidance. Note that individual quarters may fluctuate on both a cash and an accrual basis due to timing of repairs and maintenance, capital expenditures and one-time revenue or expense events. In addition, the Company’s guidance is based on information available to management as of the date of this supplemental report.
 
7

 
Piedmont Office Realty Trust, Inc.
Key Performance Indicators
Unaudited (in thousands except for per share data)

This section includes non-GAAP financial measures, including, but not limited to, Core Earnings Before Interest, Taxes, Depreciation, and 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 29-30 and reconciliations are provided on pages 32-35.

 	  	9/30/2010	 	 	6/30/2010	 	 	3/31/2010	 	 	12/31/2009	 	 	9/30/2009	 	
Selected Operating Data	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Percent leased(1)	  	 	89.0	% 	 	 	89.8	% 	 	 	89.6	% 	 	 	90.1	% 	 	 	90.1	% 	
Rental income	  	$	110,776	  	 	$	110,623	  	 	$	110,512	  	 	$	110,405	  	 	$	111,280	  	
Total revenues	  	$	145,502	  	 	$	145,181	  	 	$	146,844	  	 	$	149,423	  	 	$	148,944	  	
Total operating expenses(2)	  	$	90,447	  	 	$	100,037	  	 	$	99,059	  	 	$	106,373	  	 	$	138,705	  	
Real estate operating income(2)	  	$	55,055	  	 	$	45,144	  	 	$	47,785	  	 	$	43,050	  	 	$	10,239	  	
Impairment losses on real estate assets (3)	  	$	53	  	 	$	9,587	  	 	$	0	  	 	$	0	  	 	$	37,633	  	
Core EBITDA(4)	  	$	95,612	  	 	$	85,435	  	 	$	88,592	  	 	$	89,261	  	 	$	90,265	  	
Core FFO	  	$	77,919	  	 	$	66,199	  	 	$	69,198	  	 	$	69,484	  	 	$	70,471	  	
Core FFO per share - diluted	  	$	0.45	  	 	$	0.38	  	 	$	0.42	  	 	$	0.44	  	 	$	0.45	  	
AFFO(4)	  	$	61,468	  	 	$	55,812	  	 	$	60,290	  	 	$	47,433	  	 	$	61,364	  	
AFFO per share - diluted	  	$	0.36	  	 	$	0.32	  	 	$	0.36	  	 	$	0.30	  	 	$	0.39	  	
Gross dividends	  	$	54,388	  	 	$	54,388	  	 	$	53,777	  	 	$	49,733	  	 	$	49,565	  	
Dividends per share	  	$	0.315	  	 	$	0.315	  	 	$	0.315	  	 	$	0.315	  	 	$	0.315	  	
Selected Balance Sheet Data	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total real estate assets	  	$	3,689,428	  	 	$	3,704,757	  	 	$	3,737,478	  	 	$	3,763,527	  	 	$	3,785,458	  	
Total gross real estate assets	  	$	4,573,622	  	 	$	4,560,176	  	 	$	4,571,836	  	 	$	4,575,638	  	 	$	4,601,834	  	
Total assets	  	$	4,389,585	  	 	$	4,405,501	  	 	$	4,428,410	  	 	$	4,395,345	  	 	$	4,431,851	  	
Net debt(5)	  	$	1,334,986	  	 	$	1,321,459	  	 	$	1,325,531	  	 	$	1,506,521	  	 	$	1,515,186	  	
Total liabilities	  	$	1,591,653	  	 	$	1,594,278	  	 	$	1,584,781	  	 	$	1,713,299	  	 	$	1,743,415	  	
Ratios	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core EBITDA margin(6)	  	 	65.0	% 	 	 	58.2	% 	 	 	59.7	% 	 	 	59.1	% 	 	 	60.0	% 	
 	 	 	 	 	 	
Fixed charge coverage ratio(7)	  	 	5.5 x	  	 	 	4.5 x	  	 	 	4.6 x	  	 	 	4.6 x	  	 	 	4.6 x	  	
Net debt to core EBITDA(8)	  	 	3.5 x	  	 	 	3.9 x	  	 	 	3.7 x	  	 	 	4.2 x	  	 	 	4.2 x	  	
 
(1)	Percent leased represents 74 office properties and excludes industrial and unconsolidated joint venture properties. Percent leased decreased in the first quarter of 2010 as compared to the prior period primarily due to Kirkland & Ellis vacating 99,000 square feet at Aon Center in Chicago, IL. Percent leased decreased in the third quarter of 2010 as compared to the prior period primarily due to the acquisition of Suwanee Gateway One, a newly-built, vacant building consisting of 142,000 square feet; if we excluded this building from consideration for consistent comparison to prior periods, our percent leased would have been 89.7%.	
(2)	Total operating expenses and real estate operating income in the third quarter of 2009 include $35.1 million in impairment charges recognized on three wholly-owned assets and in the second quarter of 2010 include a $9.6 million impairment charge on one wholly-owned asset.	
(3)	Impairment losses include losses for both wholly-owned and unconsolidated joint venture assets.	
(4)	Core EBITDA and AFFO have been adjusted to exclude impairments on real estate assets as shown on pages 32 and 34.	
(5)	Net debt is calculated as total debt minus cash and cash equivalents.	
(6)	Core EBITDA margin is calculated as Core EBITDA divided by total revenues (including revenues associated with discontinued operations).	
(7)	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 three months ended September 30, 2010.	
(8)	Core EBITDA is annualized for the purposes of this calculation.	
 
8

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	September 30, 2010	 	 	June 30, 2010	 	 	March 31, 2010	 	 	December 31, 2009	 	 	September 30, 2009	 	
Assets:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Real estate, at cost:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Land assets	 	$	642,072	  	 	$	641,073	  	 	$	641,073	  	 	$	641,073	  	 	$	641,073	  	
Buildings and improvements	 	 	3,630,011	  	 	 	3,612,914	  	 	 	3,609,608	  	 	 	3,600,406	  	 	 	3,591,403	  	
Buildings and improvements, accumulated depreciation	 	 	(727,307	) 	 	 	(702,867	) 	 	 	(677,499	) 	 	 	(653,839	) 	 	 	(631,120	) 	
Intangible lease asset	 	 	222,952	  	 	 	224,532	  	 	 	235,022	  	 	 	243,312	  	 	 	280,087	  	
Intangible lease asset, accumulated amortization	 	 	(145,139	) 	 	 	(140,804	) 	 	 	(145,242	) 	 	 	(147,043	) 	 	 	(174,417	) 	
Construction in progress	 	 	11,839	  	 	 	14,909	  	 	 	12,345	  	 	 	17,059	  	 	 	15,483	  	
Real estate assets held for sale, gross	 	 	66,748	  	 	 	66,748	  	 	 	73,788	  	 	 	73,788	  	 	 	73,788	  	
Real estate assets held for sale, accumulated depreciation and amortization	 	 	(11,748	) 	 	 	(11,748	) 	 	 	(11,617	) 	 	 	(11,229	) 	 	 	(10,839	) 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total real estate assets	 	 	3,689,428	  	 	 	3,704,757	  	 	 	3,737,478	  	 	 	3,763,527	  	 	 	3,785,458	  	
 	 	 	 	 	 	
Investment in unconsolidated joint ventures	 	 	42,591	  	 	 	43,005	  	 	 	43,482	  	 	 	43,940	  	 	 	44,350	  	
Cash and cash equivalents	 	 	67,539	  	 	 	81,066	  	 	 	76,994	  	 	 	10,004	  	 	 	17,339	  	
Tenant receivables, net of allowance for doubtful accounts	 	 	29,269	  	 	 	30,986	  	 	 	33,152	  	 	 	33,071	  	 	 	38,818	  	
Straight line rent receivable	 	 	100,686	  	 	 	96,750	  	 	 	94,906	  	 	 	95,016	  	 	 	92,406	  	
Notes receivable	 	 	60,671	  	 	 	60,101	  	 	 	59,407	  	 	 	58,739	  	 	 	58,523	  	
Due from unconsolidated joint ventures	 	 	1,085	  	 	 	1,124	  	 	 	1,202	  	 	 	1,083	  	 	 	1,072	  	
Prepaid expenses and other assets	 	 	36,802	  	 	 	24,866	  	 	 	18,600	  	 	 	21,456	  	 	 	22,220	  	
Goodwill	 	 	180,097	  	 	 	180,097	  	 	 	180,097	  	 	 	180,097	  	 	 	180,097	  	
Deferred financing costs, less accumulated amortization	 	 	5,878	  	 	 	6,467	  	 	 	6,509	  	 	 	7,205	  	 	 	7,901	  	
Deferred lease costs, less accumulated amortization	 	 	175,474	  	 	 	176,120	  	 	 	176,290	  	 	 	180,832	  	 	 	183,214	  	
Other assets held for sale	 	 	65	  	 	 	162	  	 	 	293	  	 	 	375	  	 	 	453	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total assets	 	$	4,389,585	  	 	$	4,405,501	  	 	$	4,428,410	  	 	$	4,395,345	  	 	$	4,431,851	  	

Liabilities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Line of credit and notes payable	 	$	1,402,525	  	 	$	1,402,525	  	 	$	1,402,525	  	 	$	1,516,525	  	 	$	1,532,525	  	
Accounts payable, accrued expenses, and accrued capital expenditures	 	 	99,872	  	 	 	99,819	  	 	 	83,172	  	 	 	97,747	  	 	 	111,345	  	
Deferred income	 	 	33,882	  	 	 	33,916	  	 	 	39,079	  	 	 	34,506	  	 	 	29,788	  	
Intangible lease liabilities, less accumulated amortization	 	 	51,807	  	 	 	54,730	  	 	 	57,689	  	 	 	60,655	  	 	 	64,082	  	
Interest rate swap	 	 	1,028	  	 	 	742	  	 	 	2,316	  	 	 	3,866	  	 	 	5,675	  	
Other liabilities held for sale	 	 	2,539	  	 	 	2,546	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities	 	 	1,591,653	  	 	 	1,594,278	  	 	 	1,584,781	  	 	 	1,713,299	  	 	 	1,743,415	  	
 	 	 	 	 	 	
Redeemable common stock(1)	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	75,164	  	 	 	61,716	  	
 	 	 	 	 	 	
Stockholders’ equity(2) :	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Class A common stock	 	 	932	  	 	 	536	  	 	 	534	  	 	 	397	  	 	 	395	  	
Class B-1 common stock	 	 	—  	  	 	 	397	  	 	 	397	  	 	 	397	  	 	 	395	  	
Class B-2 common stock	 	 	397	  	 	 	397	  	 	 	397	  	 	 	397	  	 	 	396	  	
Class B-3 common stock	 	 	397	  	 	 	397	  	 	 	397	  	 	 	398	  	 	 	396	  	
Additional paid in capital	 	 	3,660,551	  	 	 	3,659,910	  	 	 	3,659,257	  	 	 	3,477,168	  	 	 	3,461,698	  	
Cumulative distributions in excess of earnings	 	 	(869,434	) 	 	 	(855,631	) 	 	 	(820,878	) 	 	 	(798,561	) 	 	 	(774,774	) 	
Redeemable common stock(1)	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(75,164	) 	 	 	(61,716	) 	
Other comprehensive loss	 	 	(1,028	) 	 	 	(742	) 	 	 	(2,316	) 	 	 	(3,866	) 	 	 	(5,675	) 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Piedmont stockholders’ equity	 	 	2,791,815	  	 	 	2,805,264	  	 	 	2,837,788	  	 	 	2,601,166	  	 	 	2,621,115	  	
Non-controlling interest	 	 	6,117	  	 	 	5,959	  	 	 	5,841	  	 	 	5,716	  	 	 	5,605	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total stockholders’ equity	 	 	2,797,932	  	 	 	2,811,223	  	 	 	2,843,629	  	 	 	2,606,882	  	 	 	2,626,720	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities, redeemable common stock and stockholders’ equity	 	$	4,389,585	  	 	$	4,405,501	  	 	$	4,428,410	  	 	$	4,395,345	  	 	$	4,431,851	  	

All classes of common stock outstanding at end of period  (2)	 	 	172,658	  	 	 	172,658	  	 	 	172,517	  	 	 	158,917	  	 	 	158,215	  	
 
(1)	During the three months ended March 31, 2010, the board of directors terminated the share redemption plan. We are no longer required by GAAP to reclassify any of our common stock outstanding as redeemable common stock.	
(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. Prior period share and per share information in this report has been restated to reflect this recapitalization.	
 
9

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	
 	  	9/30/2010	 	 	6/30/2010	 	 	3/31/2010	 	 	12/31/2009	 	 	9/30/2009	 	
Revenues:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental income	  	$	110,776	  	 	$	110,623	  	 	$	110,512	  	 	$	110,405	  	 	$	111,280	  	
Tenant reimbursements	  	 	29,690	  	 	 	33,374	  	 	 	35,083	  	 	 	36,108	  	 	 	36,922	  	
Property management fee revenue	  	 	806	  	 	 	705	  	 	 	753	  	 	 	928	  	 	 	742	  	
Other rental income	  	 	4,230	  	 	 	479	  	 	 	496	  	 	 	1,982	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	145,502	  	 	 	145,181	  	 	 	146,844	  	 	 	149,423	  	 	 	148,944	  	
 	 	 	 	 	 	
Operating expenses:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property operating costs	  	 	46,612	  	 	 	55,497	  	 	 	55,361	  	 	 	57,281	  	 	 	57,592	  	
Depreciation	  	 	26,011	  	 	 	25,584	  	 	 	25,691	  	 	 	26,701	  	 	 	26,403	  	
Amortization	  	 	11,018	  	 	 	11,004	  	 	 	11,387	  	 	 	16,172	  	 	 	13,991	  	
Impairment loss on real estate assets	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	35,063	  	
General and administrative	  	 	6,806	  	 	 	7,952	  	 	 	6,620	  	 	 	6,219	  	 	 	5,656	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses	  	 	90,447	  	 	 	100,037	  	 	 	99,059	  	 	 	106,373	  	 	 	138,705	  	

Real estate operating income	  	 	55,055	  	 	 	45,144	  	 	 	47,785	  	 	 	43,050	  	 	 	10,239	  	
 	 	 	 	 	 	
Other income (expense):	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest expense	  	 	(17,359	) 	 	 	(18,933	) 	 	 	(19,091	) 	 	 	(19,488	) 	 	 	(19,518	) 	
Interest and other income	  	 	993	  	 	 	1,036	  	 	 	969	  	 	 	652	  	 	 	1,989	  	
Equity in income of unconsolidated joint ventures	  	 	619	  	 	 	647	  	 	 	737	  	 	 	672	  	 	 	(1,985	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total other income (expense)	  	 	(15,747	) 	 	 	(17,250	) 	 	 	(17,385	) 	 	 	(18,164	) 	 	 	(19,514	) 	

Income from continuing operations	  	 	39,308	  	 	 	27,894	  	 	 	30,400	  	 	 	24,886	  	 	 	(9,275	) 	
 	 	 	 	 	 	
Operating income, excluding impairment loss	  	 	1,434	  	 	 	1,454	  	 	 	1,185	  	 	 	1,179	  	 	 	1,136	  	
Impairment loss	  	 	—  	  	 	 	(9,587	) 	 	 	—  	  	 	 	—  	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Discontinued operations (1)	  	 	1,434	  	 	 	(8,133	) 	 	 	1,185	  	 	 	1,179	  	 	 	1,136	  	

Net income	  	 	40,742	  	 	 	19,761	  	 	 	31,585	  	 	 	26,065	  	 	 	(8,139	) 	
 	 	 	 	 	 	
Less: Net income attributable to noncontrolling interest	  	 	(158	) 	 	 	(125	) 	 	 	(125	) 	 	 	(119	) 	 	 	(121	) 	

Net income attributable to Piedmont	  	$	40,584	  	 	$	19,636	  	 	$	31,460	  	 	$	25,946	  	 	$	(8,260	) 	

Weighted average common shares outstanding - diluted	  	 	172,885	  	 	 	172,718	  	 	 	165,200	  	 	 	158,393	  	 	 	157,603	  	
 	 	 	 	 	 	
Net income per share available to common stockholders - diluted	  	$	0.23	  	 	$	0.11	  	 	$	0.19	  	 	$	0.16	  	 	$	(0.05	) 	

(1)	Reflects operating results for 111 Sylvan Avenue, which is now under a binding sale contract.	
 
10

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	 	Nine Months Ended	 	
 	  	9/30/2010	 	 	9/30/2009	 	 	Change	 	 	Change	 	 	9/30/2010	 	 	9/30/2009	 	 	Change	 	 	Change	 	
Revenues:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental income	  	$	110,776	  	 	$	111,280	  	 	$	(504	) 	 	 	-0.5	% 	 	$	331,910	  	 	$	333,032	  	 	$	(1,122	) 	 	 	-0.3	% 	
Tenant reimbursements	  	 	29,690	  	 	 	36,922	  	 	 	(7,232	) 	 	 	-19.6	% 	 	 	98,147	  	 	 	113,085	  	 	 	(14,938	) 	 	 	-13.2	% 	
Property management fee revenue	  	 	806	  	 	 	742	  	 	 	64	  	 	 	8.6	% 	 	 	2,265	  	 	 	2,183	  	 	 	82	  	 	 	3.8	% 	
Other rental income	  	 	4,230	  	 	 	—  	  	 	 	4,230	  	 	 	0.0	% 	 	 	5,205	  	 	 	782	  	 	 	4,423	  	 	 	565.6	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	145,502	  	 	 	148,944	  	 	 	(3,442	) 	 	 	-2.3	% 	 	 	437,527	  	 	 	449,082	  	 	 	(11,555	) 	 	 	-2.6	% 	
 	 	 	 	 	 	 	 	 	
Operating expenses:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property operating costs	  	 	46,612	  	 	 	57,592	  	 	 	10,980	  	 	 	19.1	% 	 	 	157,470	  	 	 	173,308	  	 	 	15,838	  	 	 	9.1	% 	
Depreciation	  	 	26,011	  	 	 	26,403	  	 	 	392	  	 	 	1.5	% 	 	 	77,285	  	 	 	77,815	  	 	 	530	  	 	 	0.7	% 	
Amortization	  	 	11,018	  	 	 	13,991	  	 	 	2,973	  	 	 	21.2	% 	 	 	33,409	  	 	 	41,127	  	 	 	7,718	  	 	 	18.8	% 	
Impairment loss on real estate assets	  	 	—  	  	 	 	35,063	  	 	 	35,063	  	 	 	100.0	% 	 	 	—  	  	 	 	35,063	  	 	 	35,063	  	 	 	100.0	% 	
General and administrative	  	 	6,806	  	 	 	5,656	  	 	 	(1,150	) 	 	 	-20.3	% 	 	 	21,378	  	 	 	21,097	  	 	 	(281	) 	 	 	-1.3	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses	  	 	90,447	  	 	 	138,705	  	 	 	48,258	  	 	 	34.8	% 	 	 	289,542	  	 	 	348,410	  	 	 	58,868	  	 	 	16.9	% 	

Real estate operating income	  	 	55,055	  	 	 	10,239	  	 	 	44,816	  	 	 	437.7	% 	 	 	147,985	  	 	 	100,672	  	 	 	47,313	  	 	 	47.0	% 	
 	 	 	 	 	 	 	 	 	
Other income (expense):	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest expense	  	 	(17,359	) 	 	 	(19,518	) 	 	 	2,159	  	 	 	11.1	% 	 	 	(55,383	) 	 	 	(58,255	) 	 	 	2,872	  	 	 	4.9	% 	
Interest and other income	  	 	993	  	 	 	1,989	  	 	 	(996	) 	 	 	-50.1	% 	 	 	2,998	  	 	 	3,798	  	 	 	(800	) 	 	 	-21.1	% 	
Equity in income of unconsolidated joint ventures	  	 	619	  	 	 	(1,985	) 	 	 	2,604	  	 	 	131.2	% 	 	 	2,003	  	 	 	(568	) 	 	 	2,571	  	 	 	452.6	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total other income (expense)	  	 	(15,747	) 	 	 	(19,514	) 	 	 	3,767	  	 	 	19.3	% 	 	 	(50,382	) 	 	 	(55,025	) 	 	 	4,643	  	 	 	8.4	% 	

Income from continuing operations	  	 	39,308	  	 	 	(9,275	) 	 	 	48,583	  	 	 	523.8	% 	 	 	97,603	  	 	 	45,647	  	 	 	51,956	  	 	 	113.8	% 	
 	 	 	 	 	 	 	 	 	
Operating income, excluding impairment loss	  	 	1,434	  	 	 	1,136	  	 	 	298	  	 	 	26.2	% 	 	 	4,072	  	 	 	3,466	  	 	 	606	  	 	 	17.5	% 	
Impairment loss	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	0.0	% 	 	 	(9,587	) 	 	 	—  	  	 	 	(9,587	) 	 	 	0.0	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Discontinued operations  (1)	  	 	1,434	  	 	 	1,136	  	 	 	298	  	 	 	26.2	% 	 	 	(5,515	) 	 	 	3,466	  	 	 	(8,981	) 	 	 	-259.1	% 	

Net income	  	 	40,742	  	 	 	(8,139	) 	 	 	48,881	  	 	 	600.6	% 	 	 	92,088	  	 	 	49,113	  	 	 	42,975	  	 	 	87.5	% 	
 	 	 	 	 	 	 	 	 	
Less: Net income attributable to noncontrolling interest	  	 	(158	) 	 	 	(121	) 	 	 	(37	) 	 	 	-30.6	% 	 	 	(409	) 	 	 	(359	) 	 	 	(50	) 	 	 	-13.9	% 	

Net income attributable to Piedmont	  	$	40,584	  	 	$	(8,260	) 	 	$	48,844	  	 	 	591.3	% 	 	$	91,679	  	 	$	48,754	  	 	$	42,925	  	 	 	88.0	% 	

Weighted average common shares outstanding - diluted	  	 	172,885	  	 	 	157,603	  	 	 	 	 	 	 	 	 	 	 	170,257	  	 	 	158,624	  	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	
Net income per share available to common stockholders - diluted	  	$	0.23	  	 	$	(0.05	) 	 	 	 	 	 	 	 	 	 	$	0.54	  	 	$	0.31	  	 	 	 	 	 	 	 	 	

(1)	Reflects operating results for 111 Sylvan Avenue, which is now under a binding sale contract.	
 
11

 
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	 	 	Nine Months Ended	 	
 	  	9/30/2010	 	 	9/30/2009	 	 	9/30/2010	 	 	9/30/2009	 	
Net income attributable to Piedmont	  	$	40,584	  	 	$	(8,260	) 	 	$	91,679	  	 	$	48,754	  	
 	 	 	 	 	
Depreciation(1) (2)	  	 	26,163	  	 	 	27,004	  	 	 	78,285	  	 	 	79,614	  	
Amortization(1)	  	 	11,119	  	 	 	14,094	  	 	 	33,711	  	 	 	41,434	  	

Funds from operations	  	 	77,866	  	 	 	32,838	  	 	 	203,675	  	 	 	169,802	  	
 	 	 	 	 	
Impairment loss on real estate assets(1)	  	 	53	  	 	 	37,633	  	 	 	9,641	  	 	 	37,633	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core funds from operations	  	 	77,919	  	 	 	70,471	  	 	 	213,316	  	 	 	207,435	  	
 	 	 	 	 	
Depreciation of non real estate assets	  	 	176	  	 	 	155	  	 	 	533	  	 	 	461	  	
Stock-based and other non-cash compensation expense	  	 	1,095	  	 	 	671	  	 	 	2,458	  	 	 	2,506	  	
Deferred financing cost amortization	  	 	607	  	 	 	696	  	 	 	2,000	  	 	 	2,090	  	
Add/(deduct) straight-line effects of lease revenue(1)	  	 	(2,921	) 	 	 	(847	) 	 	 	(2,632	) 	 	 	622	  	
Amortization of lease-related intangibles(1)	  	 	(1,510	) 	 	 	(1,283	) 	 	 	(4,461	) 	 	 	(3,736	) 	
Income from amortization of discount on purchase of mezzanine loans	  	 	(569	) 	 	 	(648	) 	 	 	(1,932	) 	 	 	(1,944	) 	
Non-incremental capital expenditures(3)	  	 	(13,329	) 	 	 	(7,851	) 	 	 	(31,712	) 	 	 	(26,478	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted funds from operations	  	$	61,468	  	 	$	61,364	  	 	$	177,570	  	 	$	180,956	  	

Weighted average common shares outstanding - diluted	  	 	172,885	  	 	 	157,603	  	 	 	170,257	  	 	 	158,624	  	
 	 	 	 	 	
Funds from operations per share (diluted)	  	$	0.45	  	 	$	0.21	  	 	$	1.20	  	 	$	1.07	  	
Core funds from operations per share (diluted)	  	$	0.45	  	 	$	0.45	  	 	$	1.25	  	 	$	1.31	  	
Adjusted funds from operations per share (diluted)	  	$	0.36	  	 	$	0.39	  	 	$	1.04	  	 	$	1.14	  	
 
(1)	Includes adjustments for wholly-owned properties and for our proportionate ownership in unconsolidated joint ventures.	
(2)	Excludes depreciation of non real estate assets.	
(3)	Non-incremental capital expenditures are defined on page 30.	
 
12

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	 	Nine Months Ended	 	
 	  	9/30/2010	 	 	9/30/2009	 	 	9/30/2010	 	 	9/30/2009	 	
Net income attributable to Piedmont	  	$	40,584	  	 	$	(8,260	) 	 	$	91,679	  	 	$	48,754	  	
 	 	 	 	 	
Net income attributable to noncontrolling interest	  	 	158	  	 	 	121	  	 	 	409	  	 	 	359	  	
Interest expense	  	 	17,359	  	 	 	19,518	  	 	 	55,383	  	 	 	58,255	  	
Depreciation(1)	  	 	26,339	  	 	 	27,159	  	 	 	78,818	  	 	 	80,075	  	
Amortization(1)	  	 	11,119	  	 	 	14,094	  	 	 	33,711	  	 	 	41,434	  	
Impairment loss on real estate assets(1)	  	 	53	  	 	 	37,633	  	 	 	9,641	  	 	 	37,633	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core EBITDA	  	 	95,612	  	 	 	90,265	  	 	 	269,641	  	 	 	266,510	  	
 	 	 	 	 	
General & administrative expenses(1)	  	 	7,001	  	 	 	5,757	  	 	 	21,690	  	 	 	21,262	  	
Management fee revenue	  	 	(806	) 	 	 	(742	) 	 	 	(2,265	) 	 	 	(2,183	) 	
Interest and other income	  	 	(993	) 	 	 	(1,989	) 	 	 	(2,998	) 	 	 	(3,798	) 	
Lease termination income	  	 	(4,230	) 	 	 	—  	  	 	 	(5,205	) 	 	 	(782	) 	
Lease termination expense - straight line rent & acquisition intangibles write-offs	  	 	131	  	 	 	627	  	 	 	876	  	 	 	801	  	
Straight line rent adjustment(1)	  	 	(3,053	) 	 	 	(1,508	) 	 	 	(3,508	) 	 	 	(190	) 	
Net effect of amortization of above/(below) market in-place lease intangibles (1)	  	 	(1,510	) 	 	 	(1,249	) 	 	 	(4,461	) 	 	 	(3,727	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core net operating income	  	 	92,152	  	 	 	91,161	  	 	 	273,770	  	 	 	277,893	  	
Acquisitions	  	 	2	  	 	 	—  	  	 	 	2	  	 	 	—  	  	
Industrial properties	  	 	(91	) 	 	 	(638	) 	 	 	(456	) 	 	 	(1,920	) 	
Unconsolidated joint ventures	  	 	(1,217	) 	 	 	(1,171	) 	 	 	(3,670	) 	 	 	(3,637	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Same Store NOI	  	$	90,846	  	 	$	89,352	  	 	$	269,646	  	 	$	272,336	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Change period over period	  	 	1.7	% 	 	 	N/A	  	 	 	-1.0	% 	 	 	N/A	  	

 

Same Store Net Operating Income	  	 	 	 	 	
Top Seven Markets	  	 	 	 	 	
  	  	Three Months Ended	 	  	Nine Months Ended	 	 	
 	  	9/30/2010	 	  	9/30/2009	 	  	9/30/2010	 	  	9/30/2009	 	 	 	
 	  	$	 	  	%	 	  	$	 	  	%	 	  	$	 	  	%	 	  	$	 	  	%	 	 	 	
Chicago(2)	  	$	23,095	  	  	 	25.4	  	  	$	19,767	  	  	 	22.1	  	  	$	58,442	  	  	 	21.7	  	  	$	60,367	  	  	 	22.2	  	 	 	
Washington, D.C.	  	 	18,628	  	  	 	20.5	  	  	 	18,550	  	  	 	20.8	  	  	 	55,944	  	  	 	20.7	  	  	 	55,234	  	  	 	20.3	  	 	 	
New York(3)	  	 	15,006	  	  	 	16.5	  	  	 	15,359	  	  	 	17.2	  	  	 	43,614	  	  	 	16.2	  	  	 	46,591	  	  	 	17.1	  	 	 	
Minneapolis	  	 	5,384	  	  	 	5.9	  	  	 	5,415	  	  	 	6.1	  	  	 	16,058	  	  	 	6.0	  	  	 	15,590	  	  	 	5.7	  	 	 	
Los Angeles(4)	  	 	3,619	  	  	 	4.0	  	  	 	5,414	  	  	 	6.1	  	  	 	13,708	  	  	 	5.1	  	  	 	16,855	  	  	 	6.2	  	 	 	
Dallas	  	 	4,167	  	  	 	4.6	  	  	 	4,070	  	  	 	4.5	  	  	 	11,974	  	  	 	4.4	  	  	 	12,045	  	  	 	4.4	  	 	 	
Boston	  	 	3,911	  	  	 	4.3	  	  	 	3,802	  	  	 	4.2	  	  	 	11,570	  	  	 	4.3	  	  	 	11,424	  	  	 	4.2	  	 	 	
Other(5)	  	 	17,036	  	  	 	18.8	  	  	 	16,975	  	  	 	19.0	  	  	 	58,336	  	  	 	21.6	  	  	 	54,230	  	  	 	19.9	  	 	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	
Total	  	$	90,846	  	  	 	100.0	  	  	$	89,352	  	  	 	100.0	  	  	$	269,646	  	  	 	100.0	  	  	$	272,336	  	  	 	100.0	  	 	 	

 
(1)	Includes amounts attributable to our unconsolidated joint venture assets.	
(2)	The increase in Chicago Same Store Net Operating Income for the three months ended September 30, 2010 as compared to the same period in 2009 is primarily due to accrual adjustments for property taxes. Assessed values for several buildings resulting from triennial reassessments and subsequent appeals were less than budgeted. The decrease in Chicago Same Store Net Operating Income for the nine months ended September 30, 2010 as compared to the same period in 2009 is primarily related to a rental abatement concession associated with a lease renewal at Windy Point I in Schaumburg, IL, as well as the previously announced 99,000 square foot partial lease expiration with Kirkland & Ellis at Aon Center in Chicago, IL, offset by the lower property tax assessments described above.	
(3)	The decrease in New York Same Store Net Operating Income for the nine months ended September 30, 2010 as compared to the same period in 2009 is primarily related to a rental abatement in 2010 associated with the lease restructure/extension with the State of New York as well as utility credits to tenants for prior year charges at 60 Broad Street in New York, NY.	
(4)	The decrease in Los Angeles Same Store Net Operating Income for the three months ended September 30, 2010 as compared to the same period in 2009 is primarily due to a rental abatement in 2010 associated with the commencement of the renewal period for the Nestle lease at 800 North Brand Boulevard in Glendale, CA. The decrease in Los Angeles Same Store Net Operating Income for the nine months ended September 30, 2010 as compared to the same period in 2009 is primarily related to the rental abatement mentioned in the preceding sentence. Additional items contributing to the decrease in Los Angeles Same Store Net Operating Income for the nine months ended September 30, 2010 are a lease default during 2009 by a bank that leased 25,000 square feet and the recognition of holdover rent in 2009 for a lease that terminated in 2008 both at our 1901 Main Street building in Irvine, CA.	
(5)	The increase in Other Same Store Net Operating Income for the three months ended September 30, 2010 and the nine months ended September 30, 2010 is due to a number of factors, the largest of which is the phased lease commencement for First Data Corporation for 184,000 square feet at Glenridge Highlands Two in Atlanta, GA during 2009.	

 
13

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	 	Nine Months Ended	 	
 	  	9/30/2010	 	 	9/30/2009	 	 	9/30/2010	 	 	9/30/2009	 	
Net income attributable to Piedmont	  	$	40,584	  	 	$	(8,260	) 	 	$	91,679	  	 	$	48,754	  	
 	 	 	 	 	
Net income attributable to noncontrolling interest	  	 	158	  	 	 	121	  	 	 	409	  	 	 	359	  	
Interest expense	  	 	17,359	  	 	 	19,518	  	 	 	55,383	  	 	 	58,255	  	
Depreciation(1)	  	 	26,339	  	 	 	27,159	  	 	 	78,818	  	 	 	80,075	  	
Amortization(1)	  	 	11,119	  	 	 	14,094	  	 	 	33,711	  	 	 	41,434	  	
Impairment loss on real estate assets(1)	  	 	53	  	 	 	37,633	  	 	 	9,641	  	 	 	37,633	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core EBITDA	  	 	95,612	  	 	 	90,265	  	 	 	269,641	  	 	 	266,510	  	
 	 	 	 	 	
General & administrative expenses(1)	  	 	7,001	  	 	 	5,757	  	 	 	21,690	  	 	 	21,262	  	
Management fee revenue	  	 	(806	) 	 	 	(742	) 	 	 	(2,265	) 	 	 	(2,183	) 	
Interest and other income	  	 	(993	) 	 	 	(1,989	) 	 	 	(2,998	) 	 	 	(3,798	) 	
Lease termination income	  	 	(4,230	) 	 	 	—  	  	 	 	(5,205	) 	 	 	(782	) 	
Lease termination expense - straight line rent & acquisition intangibles write-offs	  	 	131	  	 	 	627	  	 	 	876	  	 	 	801	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core net operating income	  	 	96,715	  	 	 	93,918	  	 	 	281,739	  	 	 	281,810	  	
Acquisitions	  	 	2	  	 	 	—  	  	 	 	2	  	 	 	—  	  	
Industrial properties	  	 	(111	) 	 	 	(637	) 	 	 	(496	) 	 	 	(1,917	) 	
Unconsolidated joint ventures	  	 	(1,142	) 	 	 	(1,112	) 	 	 	(3,517	) 	 	 	(3,496	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Same Store NOI	  	$	95,464	  	 	$	92,169	  	 	$	277,728	  	 	$	276,397	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Change period over period	  	 	3.6	% 	 	 	N/A	  	 	 	0.5	% 	 	 	N/A	  	

 	 	
Same Store Net Operating Income	  	 	 	 	
Top Seven Markets	  	 	 	 	
  	  	Three Months Ended	 	  	Nine Months Ended	 	
  	  	9/30/2010	 	  	9/30/2009	 	  	9/30/2010	 	  	9/30/2009	 	
  	  	$	 	  	%	 	  	$	 	  	%	 	  	$	 	  	%	 	  	$	 	  	%	 	
Chicago(2)	  	$	24,881	  	  	 	26.1	  	  	$	21,027	  	  	 	22.8	  	  	$	63,822	  	  	 	23.0	  	  	$	64,253	  	  	 	23.2	  	
Washington, D.C.	  	 	18,737	  	  	 	19.6	  	  	 	19,101	  	  	 	20.7	  	  	 	56,303	  	  	 	20.3	  	  	 	56,859	  	  	 	20.6	  	
New York	  	 	15,290	  	  	 	16.0	  	  	 	15,116	  	  	 	16.4	  	  	 	45,736	  	  	 	16.5	  	  	 	46,051	  	  	 	16.7	  	
Minneapolis	  	 	5,186	  	  	 	5.4	  	  	 	5,322	  	  	 	5.8	  	  	 	15,536	  	  	 	5.6	  	  	 	15,329	  	  	 	5.5	  	
Los Angeles(3)	  	 	4,741	  	  	 	5.0	  	  	 	5,386	  	  	 	5.8	  	  	 	14,918	  	  	 	5.4	  	  	 	16,866	  	  	 	6.1	  	
Dallas	  	 	3,920	  	  	 	4.1	  	  	 	4,006	  	  	 	4.4	  	  	 	11,451	  	  	 	4.1	  	  	 	11,949	  	  	 	4.3	  	
Boston	  	 	3,578	  	  	 	3.8	  	  	 	3,461	  	  	 	3.8	  	  	 	10,710	  	  	 	3.8	  	  	 	10,419	  	  	 	3.8	  	
Other(4)	  	 	19,131	  	  	 	20.0	  	  	 	18,750	  	  	 	20.3	  	  	 	59,252	  	  	 	21.3	  	  	 	54,671	  	  	 	19.8	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	$	95,464	  	  	 	100.0	  	  	$	92,169	  	  	 	100.0	  	  	$	277,728	  	  	 	100.0	  	  	$	276,397	  	  	 	100.0	  	

 
(1)	Includes amounts attributable to our unconsolidated joint venture assets.	
(2)	The increase in Chicago Same Store Net Operating Income for the three months ended September 30, 2010 as compared to the same period in 2009 is primarily related to accrual adjustments for property taxes. Assessed values for several buildings resulting from the triennial reassessment were less than budgeted. The decrease in Chicago Same Store Net Operating Income for the nine months ended September 30, 2010 as compared to the same period in 2009 is primarily related to the previously announced 99,000 square foot partial lease expiration with Kirkland & Ellis at Aon Center in Chicago, IL, as well as lower rental income, including the effects of a rent abatement concession, associated with a lease renewal at Windy Point I in Schaumburg, IL, offset by the lower property tax assessments described above.	
(3)	The decrease in Los Angeles Same Store Net Operating Income for the nine months ended September 30, 2010 as compared to the same period in 2009 is due to a number of factors, including holdover rent recognized in 2009 for a lease that terminated in 2008 and a lease default during 2009 by a bank that leased 25,000 square feet both at our 1901 Main Street building in Irvine, CA.	
(4)	The increase in Other Same Store Net Operating Income for the three months ended September 30, 2010 and the nine months ended September 30, 2010 is due to a number of factors, the largest of which is the lease commencement for 94,000 square feet of the 184,000 square foot First Data Corporation lease in July 2009 at Glenridge Highlands Two in Atlanta, GA. The lease commencement for the other 90,000 square feet associated with the First Data Corporation lease occurred in first quarter 2009.	
 
14

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

 
 	 	 	 	 	 	 	 	 	 	 	
 	  	As of
September 30, 2010	 	 	As of
December 31, 2009	 	
Common stock price(1)	  	$	18.91	  	 	$	N/A	  	
 	 	 	
Total shares outstanding(2)	  	 	172,658	  	 	 	158,917	  	
 	 	 	
Class A common stock	  	 	93,254	  	 	 	39,729	  	
Class B-1 common stock	  	 	—  	  	 	 	39,729	  	
Class B-2 common stock	  	 	39,702	  	 	 	39,729	  	
Class B-3 common stock	  	 	39,702	  	 	 	39,729	  	
 	 	 	
Equity market capitalization(3)	  	$	3,264,972	  	 	$	N/A	  	
 	 	 	
Total consolidated debt	  	$	1,402,525	  	 	$	1,516,525	  	
 	 	 	
Total market capitalization(1)	  	$	4,667,497	  	 	$	N/A	  	
 	 	 	
Total debt / Total market capitalization	  	 	30.0	% 	 	 	N/A	  	
 	 	 	
Total gross real estate assets	  	$	4,573,622	  	 	$	4,575,638	  	
 	 	 	
Total debt / Total gross real estate assets(4)	  	 	30.7	% 	 	 	33.1	% 	
 	 	 	
Total debt / Total gross assets(5)	  	 	26.6	% 	 	 	29.1	% 	
 
(1)	Reflects closing common stock price as of the end of the reporting period. The company was not listed on a public exchange as of December 31, 2009. Our Class A common stock initially listed on the New York Stock Exchange on February 10, 2010.	
(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. Prior period share and per share information in this report has been restated to reflect this recapitalization.	
(3)	Market value of common shares is defined as the total number of shares of all classes of our common stock outstanding multiplied by the closing price of our Class A common stock at the end of the reporting period, 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 gross real estate assets. Gross real estate assets is defined as total real estate assets with the add back of accumulated depreciation and accumulated amortization related to 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 with the add back of accumulated depreciation and accumulated amortization related to real estate assets.	
 
15

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Floating Rate & Fixed Rate Debt	
 	 	 	 	 	
Debt (1)	  	Amount	 	 	Weighted Average
Interest Rate	 	 	Weighted Average
Maturity	 	 	 	
Floating Rate	  	$	0	(2) 	 	 	0.0	%(3) 	 	 	23.0 months	  	 	 	
Fixed Rate(4)	  	 	1,402,525	  	 	 	4.7	% 	 	 	44.3 months	  	 	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	1,402,525	  	 	 	4.7	% 	 	 	44.3 months	  	 	 	

Unsecured & Secured Debt	
 	 	 	 	 	
Debt (1)	  	Amount	 	 	Weighted Average
Interest Rate	 	 	Weighted Average
Maturity	 	 	 	
Unsecured	  	$	250,000	  	 	 	2.4	%(4) 	 	 	8.9 months	  	 	 	
Secured	  	 	1,152,525	  	 	 	5.2	% 	 	 	51.9 months	  	 	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	1,402,525	  	 	 	4.7	% 	 	 	44.3 months	  	 	 	

Debt Maturities	
 	 	 	 	 	 	
Maturity Year	  	Secured Debt  (1)	 	 	Unsecured Debt  (1)	 	 	Weighted Average
Interest Rate	 	 	Percentage of
Total	 	 	 	
2010	  	$	0	  	 	$	0	  	 	 	N/A	  	 	 	N/A	  	 	 	
2011	  	 	0	  	 	 	250,000	  	 	 	2.4	% 	 	 	17.8	% 	 	 	
2012	  	 	45,000	  	 	 	0	(2) 	 	 	5.2	% 	 	 	3.2	% 	 	 	
2013	  	 	0	  	 	 	0	  	 	 	N/A	  	 	 	N/A	  	 	 	
2014	  	 	695,000	  	 	 	0	  	 	 	4.9	% 	 	 	49.6	% 	 	 	
2015	  	 	105,000	  	 	 	0	  	 	 	5.3	% 	 	 	7.5	% 	 	 	
2016	  	 	167,525	  	 	 	0	  	 	 	5.6	% 	 	 	11.9	% 	 	 	
2017	  	 	140,000	  	 	 	0	  	 	 	5.8	% 	 	 	10.0	% 	 	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
TOTAL	  	$	1,152,525	  	 	$	250,000	  	 	 	4.7	% 	 	 	100.0	% 	 	 	

(1)	All of Piedmont’s outstanding debt as of September 30, 2010 is interest-only debt.	
(2)	Amount represents the outstanding balance as of September 30, 2010 on the $500 million 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.	
(3)	The interest rate on the currently unused $500 million unsecured line of credit is equal to the weighted average interest rate on all outstanding draws as of September 30, 2010. 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 0.475% over the selected rate based on Piedmont’s current credit rating.	
(4)	The $250 million unsecured term loan has a stated variable rate; however, Piedmont entered into interest rate swap agreements which effectively fix the interest rate on this loan at 2.36% through June 28, 2011.	
 
16

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Facility	  	Property	  	Rate(1)	 	 	Maturity	 	 	Principal
Balance
Outstanding as
of September 30,
2010	 	
Secured (Fixed)	  	 	  	 	 	 	 	 	 	 	 	 	 	 	
$45.0 Million Fixed-Rate Loan	  	4250 North Fairfax	  	 	5.20%	  	 	 	6/1/2012	  	 	$	45,000	  	
35 West Wacker Building Mortgage Note	  	35 West Wacker Drive	  	 	5.10%	  	 	 	1/1/2014	  	 	 	120,000	  	
Aon Center Chicago Mortgage Note	  	Aon Center	  	 	4.87%	  	 	 	5/1/2014	  	 	 	200,000	  	
Aon Center Chicago Mortgage Note	  	Aon Center	  	 	5.70%	  	 	 	5/1/2014	  	 	 	25,000	  	
Secured Pooled Facility	  	Nine Property Collateralized Pool(2)	  	 	4.84%	  	 	 	6/7/2014	  	 	 	350,000	  	
$105.0 Million Fixed-Rate Loan	  	US Bancorp Center	  	 	5.29%	  	 	 	5/11/2015	  	 	 	105,000	  	
$125.0 Million Fixed-Rate Loan	  	Four Property Collateralized Pool(3)	  	 	5.50%	  	 	 	4/1/2016	  	 	 	125,000	  	
$42.5 Million Fixed-Rate Loan	  	Las Colinas Corporate Center I & II	  	 	5.70%	  	 	 	10/11/2016	  	 	 	42,525	  	
WDC Mortgage Notes	  	1201 & 1225 Eye Street	  	 	5.76%	  	 	 	11/1/2017	  	 	 	140,000	  	
 	  	 	  	 	 	 	 	 	 	 	 	 	 	 	
Subtotal/Weighted Average (4)	  	 	  	 	5.16%	  	 	 	 	 	 	$	1,152,525	  	
 	 	 	 	 	
Unsecured (Variable)	  	 	  	 	 	 	 	 	 	 	 	 	 	 	
$250 Million Unsecured Term Loan(5)	  	N/A	  	 	LIBOR +  1.50%(5)	  	 	 	6/28/2011	  	 	$	250,000	  	
$500 Million Unsecured Facility(6)	  	N/A	  	 	0%(7)	  	 	 	8/30/2011	(8)	 	 	0	  	
 	  	 	  	 	 	 	 	 	 	 	 	 	 	 	
Subtotal/Weighted Average (4)	  	 	  	 	2.36%	  	 	 	 	 	 	$	250,000	  	
 	  	 	  	 	 	 	 	 	 	 	 	 	 	 	
Total/ Weighted Average (4)	  	 	  	 	4.66%	  	 	 	 	 	 	$	1,402,525	  	

(1)	All of Piedmont’s outstanding debt as of September 30, 2010 is interest-only debt.	
(2)	The nine property collateralized pool includes 1200 Crown Colony Drive, Braker Pointe III, 2 Gatehall Drive, One and Two Independence Square, 2120 West End Avenue, 111 Sylvan Avenue, 200 Bridgewater Crossing, and Fairway Center II.	
(3)	The four property collateralized pool includes 1430 Enclave Parkway, Windy Point I and II, and 1055 East Colorado Boulevard.	
(4)	Weighted average is based on the total balance outstanding and interest rate at September 30, 2010.	
(5)	The $250 million unsecured term loan has a stated variable rate; however, Piedmont entered into interest rate swap agreements which effectively fix the interest rate on this loan at 2.36% through June 28, 2011.	
(6)	All of Piedmont’s outstanding debt as of September 30, 2010 is term debt with the exception of the $500 million unsecured line of credit, which had no outstanding draws at quarter end.	
(7)	The interest rate on the currently unused $500 million unsecured line of credit is equal to the weighted-average interest rate on all outstanding draws as of September 30, 2010. 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 (0.475% as of September 30, 2010) over the selected rate based on Piedmont’s current credit rating.	
(8)	Piedmont may extend the term for one additional year provided Piedmont is not then in default and upon the payment of a 15 basis point extension fee.	
 
17

 
Piedmont Office Realty Trust, Inc.
Debt Analysis
As of September 30, 2010
Unaudited

 
 	 	 	 	 	 	 	 	 	
Debt Covenant Compliance (1)	  	Required	 	  	Actual	 	
Maximum Leverage Ratio	  	 	0.60	  	  	 	0.27	  	
Minimum Fixed Charge Coverage Ratio(2)	  	 	1.50	  	  	 	4.78	  	
Maximum Secured Indebtedness Ratio	  	 	0.40	  	  	 	0.22	  	
Minimum Unencumbered Leverage Ratio	  	 	1.60	  	  	 	8.89	  	
Minimum Unencumbered Interest Coverage Ratio(3)	  	 	1.75	  	  	 	12.62	  	
Maximum Certain Permitted Investments Ratio(4)	  	 	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.	
(4)	Permitted investments are defined as unconsolidated interests, debt investments, unimproved land, and development projects. Investments in permitted investments shall not exceed 35% of total asset value.	

Other Debt Coverage Ratios	  	Three months ended
September 30, 2010	 	  	Nine months ended
September 30, 2010	 	  	Year ended
December 31, 2009	 	
Net debt / Core EBITDA	  	 	3.5x	  	  	 	3.7x	  	  	 	4.2x	  	
Fixed charge coverage ratio(5)	  	 	5.5x	  	  	 	4.9x	  	  	 	4.6x	  	
Interest coverage ratio(6)	  	 	5.5x	  	  	 	4.9x	  	  	 	4.6x	  	
 
(5)	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 September 30, 2010.	
(6)	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 September 30, 2010.	
 
18

 
Piedmont Office Realty Trust, Inc.
Tenant Diversification
As of September 30, 2010
(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)	  	 	$	76,931	  	  	 	13.2	  	  	 	1,726	  	  	 	9.5	  	
BP(5)	  	A	  	 	1	  	  	 	2013	  	 	 	31,851	  	  	 	5.5	  	  	 	776	  	  	 	4.3	  	
Leo Burnett	  	BBB+	  	 	2	  	  	 	2019	  	 	 	27,358	  	  	 	4.7	  	  	 	695	  	  	 	3.8	  	
US Bancorp	  	A+	  	 	1	  	  	 	2014	  	 	 	21,575	  	  	 	3.7	  	  	 	715	  	  	 	3.9	  	
Winston & Strawn	  	No rating available(6)	  	 	1	  	  	 	2024	  	 	 	19,248	  	  	 	3.3	  	  	 	417	  	  	 	2.3	  	
State of New York	  	AA	  	 	1	  	  	 	2019	  	 	 	18,550	  	  	 	3.2	  	  	 	481	  	  	 	2.6	  	
Sanofi-aventis	  	AA-	  	 	2	  	  	 	2012	  	 	 	17,338	  	  	 	3.0	  	  	 	454	  	  	 	2.5	  	
Independence
Blue Cross	  	No rating available	  	 	1	  	  	 	2023	  	 	 	14,897	  	  	 	2.5	  	  	 	761	  	  	 	4.2	  	
Nestle	  	AA	  	 	1	  	  	 	2015	  	 	 	14,220	  	  	 	2.4	  	  	 	418	  	  	 	2.3	  	
Kirkland & Ellis	  	No rating available(6)	  	 	1	  	  	 	2011	  	 	 	11,655	  	  	 	2.0	  	  	 	366	  	  	 	2.0	  	
Zurich American	  	AA-	  	 	1	  	  	 	2011	  	 	 	10,878	  	  	 	1.9	  	  	 	300	  	  	 	1.6	  	
Shaw	  	BB+	  	 	1	  	  	 	2018	  	 	 	9,546	  	  	 	1.6	  	  	 	313	  	  	 	1.7	  	
State Street Bank	  	AA-	  	 	1	  	  	 	2021	  	 	 	9,413	  	  	 	1.6	  	  	 	235	  	  	 	1.3	  	
City of New York	  	AA	  	 	1	  	  	 	2020	  	 	 	9,147	  	  	 	1.6	  	  	 	313	  	  	 	1.7	  	
Lockheed Martin	  	A-	  	 	3	  	  	 	2014	  	 	 	8,897	  	  	 	1.5	  	  	 	284	  	  	 	1.6	  	
DDB Needham	  	BBB+	  	 	1	  	  	 	2018	  	 	 	8,721	  	  	 	1.5	  	  	 	244	  	  	 	1.3	  	
Citigroup	  	A	  	 	2	  	  	 	2010	  	 	 	7,555	  	  	 	1.3	  	  	 	415	  	  	 	2.3	  	
Gemini	  	A+	  	 	1	  	  	 	2013	  	 	 	7,532	  	  	 	1.3	  	  	 	205	  	  	 	1.1	  	
Gallagher	  	No rating available	  	 	1	  	  	 	2018	  	 	 	6,995	  	  	 	1.2	  	  	 	307	  	  	 	1.7	  	
Caterpillar Financial	  	A	  	 	1	  	  	 	2022	  	 	 	6,975	  	  	 	1.2	  	  	 	312	  	  	 	1.7	  	
Other	  	 	  	 	 	 	  	 	Various	  	 	 	244,923	  	  	 	41.8	  	  	 	8,455	  	  	 	46.6	  	
 	  	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	 	  	 	 	 	  	 	 	 	 	$	584,205	  	  	 	100.0	  	  	 	18,192	  	  	 	100.0	  	

 
 
(1)	Credit rating may reflect credit rating of parent or guarantor.	
(2)	Represents the expiration year of the majority of the square footage leased by the tenant.	
(3)	Please refer to page 29 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)	Majority of space is subleased to Aon Corporation.	
(6)	While no ratings are available for Winston & Strawn and Kirkland & Ellis, these tenants are ranked #33 and #5, respectively, in the 2010 AmLaw 100 ranking (based on 2009 financial data), a publication of The American Lawyer Magazine, which annually ranks the top-grossing, most profitable law firms.	
 
19

 
Piedmont Office Realty Trust, Inc.
Tenant Credit Rating & Lease Distribution Information
As of September 30, 2010

 
 	 	 	 	 	 	 	 	 	
Tenant Credit Rating (1)	  	Annualized  Lease
Revenue
($’s in
thousands)	 	  	Percentage of
Annualized Lease
Revenue (%)	 	
AAA	  	$	83,352	  	  	 	14.3	  	
AA	  	 	93,176	  	  	 	15.9	  	
A	  	 	118,881	  	  	 	20.4	  	
BBB	  	 	78,410	  	  	 	13.4	  	
BB	  	 	26,215	  	  	 	4.5	  	
B	  	 	15,377	  	  	 	2.6	  	
Below	  	 	1,400	  	  	 	0.2	  	
Not rated	  	 	167,394	  	  	 	28.7	  	
 	  	 	 	 	  	 	 	 	
Total	  	$	584,205	  	  	 	100.0	  	

 
Lease Distribution
As of September 30, 2010

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	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	  	 	157	  	  	 	33.5	  	  	$	12,642	  	  	 	2.2	  	  	 	125	  	  	 	0.7	  	
2,501 - 10,000	  	 	118	  	  	 	25.2	  	  	 	22,639	  	  	 	3.9	  	  	 	608	  	  	 	3.3	  	
10,001 - 20,000	  	 	52	  	  	 	11.1	  	  	 	24,125	  	  	 	4.1	  	  	 	757	  	  	 	4.2	  	
20,001 - 40,000	  	 	50	  	  	 	10.7	  	  	 	46,085	  	  	 	7.9	  	  	 	1,456	  	  	 	8.0	  	
40,001 - 100,000	  	 	36	  	  	 	7.7	  	  	 	68,565	  	  	 	11.7	  	  	 	2,235	  	  	 	12.3	  	
Greater than 100,000	  	 	55	  	  	 	11.8	  	  	 	410,149	  	  	 	70.2	  	  	 	13,011	  	  	 	71.5	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	 	468	  	  	 	100.0	  	  	$	584,205	  	  	 	100.0	  	  	 	18,192	  	  	 	100.0	  	

(1)	Credit rating may reflect credit rating of parent or guarantor.	
 
20

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended September 30, 2010	 	 	 	  	Nine Months Ended September 30, 2010	 	
 	  	Leased Square
Footage	 	 	Rentable Square
Footage	 	  	Percent Leased  (1)	 	 	 	  	Leased
Square
Footage	 	 	Rentable Square
Footage	 	  	Percent Leased  (1)	 	
As of June 30, 2010	  	 	18,198	  	 	 	20,274	  	  	 	89.8	% 	 	As of December 31, 2009	  	 	18,221	  	 	 	20,229	  	  	 	90.1	% 	
 	 	 	 	 	 	 	 	
New Leases	  	 	784	  	 	 	 	 	  	 	 	 	 	New Leases	  	 	1,937	  	 	 	 	 	  	 	 	 	
Expired Leases	  	 	(788	) 	 	 	 	 	  	 	 	 	 	Expired Leases	  	 	(1,965	) 	 	 	 	 	  	 	 	 	
Other	  	 	(2	) 	 	 	13	  	  	 	 	 	 	Other	  	 	(1	) 	 	 	58	  	  	 	 	 	

Subtotal	  	 	18,192	  	 	 	20,287	  	  	 	89.7	% 	 	Subtotal	  	 	18,192	  	 	 	20,287	  	  	 	89.7	% 	
 	 	 	 	 	 	 	 	
Acquisitions	  	 	—  	  	 	 	142	  	  	 	 	 	 	Acquisitions	  	 	—  	  	 	 	142	  	  	 	 	 	
 	 	 	 	 	 	 	 	
As of September 30, 2010  (2)	  	 	18,192	  	 	 	20,429	  	  	 	89.0	% 	 	As of September 30, 2010  (2)	  	 	18,192	  	 	 	20,429	  	  	 	89.0	% 	

 
Rental Rate Roll Up / Roll Down (3) (4)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Square Feet	 	  	% of Rentable
Square Footage	 	 	% Change
Cash Rents	 	 	% Change
Accrual Rents	 	
For the three months ended September 30, 2010:	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	
New, renewal, and expansion leases executed for spaces vacant less than one year	  	 	479	  	  	 	2.3	% 	 	 	(23.9	%) 	 	 	(14.3	%) 	
 	 	 	 	 	
Leases executed for spaces excluded from analysis(5)	  	 	108	  	  	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	
For the nine months ended September 30, 2010:	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	
New, renewal, and expansion leases executed for spaces vacant less than one year	  	 	1,048	  	  	 	5.1	% 	 	 	(22.4	%) 	 	 	(17.4	%) 	
 	 	 	 	 	
Leases executed for spaces excluded from analysis(5)	  	 	276	  	  	 	 	 	 	 	 	 	 	 	 	 	
 
(1)	Calculated as leased square footage on September 30, 2010 plus square footage associated with new leases signed for currently vacant spaces divided by total rentable square footage, expressed as a percentage.	
(2)	The square footage associated with leases with end of period expiration dates is included in the end of the period leased square footage.	
(3)	The population analyzed consists of office leases executed during the period (retail leases as well as leases associated with our industrial properties and our unconsolidated joint venture assets were excluded from this analysis). For spaces that had been vacant for less than one 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 one year were excluded from this analysis.	
(4)	For leases under which a tenant may use, at its discretion, a portion of its tenant improvement allowance for expenses other than those related to improvements to its space, an assumption is made that the tenant elects to use any such portion of its tenant improvement allowance for improvements to its space prior to the commencement of its lease. This assumption is made based upon the historical tenant improvement allowance usage patterns of the Company’s tenants.	
(5)	Represents leases signed at our consolidated office assets that do not qualify for inclusion in the analysis primarily because the space had been vacant for greater than one year.	
 
21

 
Piedmont Office Realty Trust, Inc.
Lease Expiration Schedule
As of September 30, 2010
(in thousands)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	OFFICE PORTFOLIO	 	  	GOVERNMENTAL ENTITIES	 	
 	  	Annualized Lease
Revenue  (1)	 	  	Percentage of
Annualized Lease
Revenue (%)	 	  	Rentable Square
Footage	 	  	Percentage of
Rentable Square
Footage (%)	 	  	Annualized Lease
Revenue  (1)	 	  	Percentage of
Annualized Lease
Revenue (%)	 	
Vacant	  	$	0	  	  	 	0.0	  	  	 	2,234	  	  	 	10.9	  	  	$	0	  	  	 	0.0	  	
2010(2)	  	 	18,342	  	  	 	3.1	  	  	 	708	  	  	 	3.5	  	  	 	494	  	  	 	0.1	  	
2011	  	 	68,522	  	  	 	11.7	  	  	 	1,908	  	  	 	9.3	  	  	 	18,723	  	  	 	3.2	  	
2012	  	 	85,347	  	  	 	14.6	  	  	 	2,235	  	  	 	10.9	  	  	 	36,763	  	  	 	6.3	  	
2013	  	 	64,727	  	  	 	11.1	  	  	 	1,728	  	  	 	8.5	  	  	 	1,598	  	  	 	0.3	  	
2014	  	 	51,670	  	  	 	8.8	  	  	 	1,664	  	  	 	8.1	  	  	 	3,601	  	  	 	0.6	  	
2015	  	 	45,990	  	  	 	7.9	  	  	 	1,622	  	  	 	7.9	  	  	 	0	  	  	 	0.0	  	
2016	  	 	31,465	  	  	 	5.4	  	  	 	1,119	  	  	 	5.5	  	  	 	1,265	  	  	 	0.2	  	
2017	  	 	18,433	  	  	 	3.2	  	  	 	543	  	  	 	2.7	  	  	 	1,248	  	  	 	0.2	  	
2018	  	 	44,807	  	  	 	7.7	  	  	 	1,506	  	  	 	7.4	  	  	 	8,604	  	  	 	1.5	  	
2019	  	 	49,390	  	  	 	8.5	  	  	 	1,418	  	  	 	6.9	  	  	 	18,551	  	  	 	3.2	  	
2020	  	 	29,762	  	  	 	5.1	  	  	 	1,085	  	  	 	5.3	  	  	 	11,773	  	  	 	2.0	  	
2021	  	 	12,047	  	  	 	2.1	  	  	 	446	  	  	 	2.2	  	  	 	1,025	  	  	 	0.2	  	
2022	  	 	8,631	  	  	 	1.5	  	  	 	344	  	  	 	1.7	  	  	 	0	  	  	 	0.0	  	
2023	  	 	14,897	  	  	 	2.5	  	  	 	761	  	  	 	3.7	  	  	 	0	  	  	 	0.0	  	
Thereafter	  	 	40,175	  	  	 	6.8	  	  	 	1,108	  	  	 	5.5	  	  	 	1,323	  	  	 	0.2	  	

Total / Weighted Average	  	$	584,205	  	  	 	100.0	  	  	 	20,429	  	  	 	100.0	  	  	$	104,968	  	  	 	18.0	  	

 
(1)	Annualized Lease Revenue for purposes of this schedule includes the revenue effects of leases executed but not commenced as of September 30, 2010.	
(2)	The 2010 expiration data includes the expiration of the Citicorp lease at 111 Sylvan Avenue, an asset that is classified as held-for-sale. If that lease were not included, our 2010 Annualized Lease Revenue expiration exposure would be 2.0%.	
 
22

 
Piedmont Office Realty Trust, Inc.
Annual Lease Expirations
As of September 30, 2010
(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	  	 	53	  	  	$	1,749	  	  	 	85	  	  	$	2,068	  	  	 	34	  	  	$	602	  	  	 	46	  	  	$	1,068	  	
Austin	  	 	0	  	  	 	0	  	  	 	0	  	  	 	0	  	  	 	0	  	  	 	0	  	  	 	0	  	  	 	0	  	
Boston	  	 	1	  	  	 	32	  	  	 	0	  	  	 	0	  	  	 	7	  	  	 	332	  	  	 	0	  	  	 	29	  	
Central & South Florida	  	 	1	  	  	 	17	  	  	 	124	  	  	 	2,758	  	  	 	4	  	  	 	105	  	  	 	55	  	  	 	1,381	  	
Chicago	  	 	89	  	  	 	3,546	  	  	 	399	  	  	 	15,725	  	  	 	42	  	  	 	1,586	  	  	 	830	  	  	 	33,132	  	
Cleveland	  	 	0	  	  	 	0	  	  	 	0	  	  	 	0	  	  	 	112	  	  	 	1,915	  	  	 	14	  	  	 	337	  	
Dallas	  	 	15	  	  	 	317	  	  	 	120	  	  	 	2,948	  	  	 	86	  	  	 	2,221	  	  	 	9	  	  	 	230	  	
Denver	  	 	0	  	  	 	0	  	  	 	0	  	  	 	0	  	  	 	0	  	  	 	0	  	  	 	0	  	  	 	0	  	
Detroit	  	 	12	  	  	 	375	  	  	 	263	  	  	 	5,731	  	  	 	84	  	  	 	2,285	  	  	 	196	  	  	 	5,647	  	
Houston	  	 	0	  	  	 	0	  	  	 	0	  	  	 	0	  	  	 	0	  	  	 	0	  	  	 	0	  	  	 	0	  	
Los Angeles	  	 	26	  	  	 	1,198	  	  	 	94	  	  	 	3,526	  	  	 	191	  	  	 	3,927	  	  	 	69	  	  	 	2,469	  	
Minneapolis	  	 	12	  	  	 	388	  	  	 	219	  	  	 	7,240	  	  	 	20	  	  	 	715	  	  	 	45	  	  	 	1,434	  	
Nashville	  	 	0	  	  	 	0	  	  	 	0	  	  	 	0	  	  	 	0	  	  	 	0	  	  	 	0	  	  	 	0	  	
New York(2)	  	 	412	  	  	 	6,865	  	  	 	4	  	  	 	305	  	  	 	585	  	  	 	19,886	  	  	 	232	  	  	 	8,574	  	
Philadelphia	  	 	0	  	  	 	0	  	  	 	0	  	  	 	0	  	  	 	0	  	  	 	0	  	  	 	0	  	  	 	0	  	
Phoenix	  	 	0	  	  	 	0	  	  	 	45	  	  	 	788	  	  	 	0	  	  	 	0	  	  	 	0	  	  	 	0	  	
Portland	  	 	0	  	  	 	0	  	  	 	105	  	  	 	1,502	  	  	 	147	  	  	 	2,584	  	  	 	0	  	  	 	0	  	
Seattle	  	 	87	  	  	 	2,246	  	  	 	38	  	  	 	1,522	  	  	 	0	  	  	 	0	  	  	 	0	  	  	 	0	  	
Washington, D.C.	  	 	0	  	  	 	844	  	  	 	412	  	  	 	22,204	  	  	 	923	  	  	 	44,203	  	  	 	232	  	  	 	10,257	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total / Weighted Average (3)	  	 	708	  	  	$	17,577	  	  	 	1,908	  	  	$	66,317	  	  	 	2,235	  	  	$	80,361	  	  	 	1,728	  	  	$	64,558	  	

(1)	Expiring lease revenue is calculated as expiring square footage multiplied by the rent per square foot of the tenant currently leasing the space.	
(2)	The 2010 expiration data includes the expiration of the Citicorp lease at 111 Sylvan Avenue, an asset that is classified as held-for-sale. If that lease were not included, our 2010 expiration exposure would be 2,000 square feet and $100,000 in expiring lease revenue.	
(3)	Total expiring lease revenue in any given year will not tie to the expiring Annualized Lease Revenue presented on the Lease Expiration Schedule as the Lease Expiration Schedule accounts for revenue effects of newly signed leases. Expirations in the Lease Expiration Schedule reflect rental rates of newly executed leases, effectively incorporating known roll ups and roll downs.	
 
23

 
Piedmont Office Realty Trust, Inc.
Capital Expenditures by Type
For the quarter ended September 30, 2010
Unaudited ($ in thousands)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	For the Three Months Ended	 	
 	  	September 30, 2010	 	  	June 30, 2010	 	  	March 31, 2010	 	  	December 31, 2009	 	  	September 30, 2009	 	
Non-incremental (1)	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Bldg / construction / dev	  	$	2,293	  	  	$	3,607	  	  	$	2,638	  	  	$	2,539	  	  	$	458	  	
Tenant improvements	  	 	6,088	  	  	 	2,333	  	  	 	4,039	  	  	 	11,359	  	  	 	3,313	  	
Leasing costs	  	 	4,948	  	  	 	3,029	  	  	 	2,737	  	  	 	6,076	  	  	 	4,080	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total non-incremental	  	 	13,329	  	  	 	8,969	  	  	 	9,414	  	  	 	19,974	  	  	 	7,851	  	
 	 	 	 	 	 	
Incremental (1)	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Bldg / construction / dev	  	 	417	  	  	 	439	  	  	 	250	  	  	 	1,559	  	  	 	741	  	
Tenant improvements	  	 	0	  	  	 	0	  	  	 	0	  	  	 	19	  	  	 	0	  	
Leasing costs	  	 	0	  	  	 	0	  	  	 	0	  	  	 	0	  	  	 	0	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total incremental	  	 	417	  	  	 	439	  	  	 	250	  	  	 	1,578	  	  	 	741	  	

Total capital expenditures	  	$	13,746	  	  	$	9,408	  	  	$	9,664	  	  	$	21,552	  	  	$	8,592	  	

 	 	 	 	 	 	 	 	 	 	 	
 
Tenant improvement commitments(2)
 	  	 	 	 	
Tenant improvement commitments outstanding as of June 30, 2010	  	$	112,416	  	
New tenant improvement commitments related to leases executed during period	  	 	8,655	  	
Tenant improvement commitments fulfilled or expired	  	 	(6,213	) 	
 	  	 	 	 	
Total as of September 30, 2010	  	$	114,858	  	

NOTE: The information presented on this page is for all consolidated assets, inclusive of our industrial properties.
 
(1)	Definitions for non-incremental and incremental capital expenditures can be found on pages 29 and 30.	
(2)	Commitments are unexpired contractual tenant improvement obligations for leases executed in current and prior periods that have not yet been incurred. The three largest commitments total approximately $65.6 million, or 57% of total outstanding commitments.	
 
24

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	For the Nine
Months Ended
September 30, 2010	 	  	For the Year Ended	 	 	
 	  	 	 	  	2009	 	  	2008	 	  	2007	 	 	 	 	
Renewal Leases	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	
Number of leases	  	 	26	  	  	 	34	  	  	 	34	  	  	 	39	  	 	 	 	
Square feet	  	 	852,511	  	  	 	1,568,895	  	  	 	967,959	  	  	 	1,672,383	  	 	 	 	
Tenant improvements per square foot(1)	  	$	15.24	  	  	$	12.01	  	  	$	8.28	  	  	$	13.19	  	 	 	 	
Leasing commissions per square foot	  	$	8.05	  	  	$	5.51	  	  	$	7.17	  	  	$	7.18	  	 	 	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	
Total per square foot	  	$	23.29	  	  	$	17.52	  	  	$	15.45	  	  	$	20.37	  	 	 	 	
 	 	 	 	 	 	 	 	
Tenant improvements per square foot per year of lease term	  	$	1.82	  	  	$	1.44	  	  	$	1.39	  	  	$	1.85	  	 	 	 	
Leasing commissions per square foot per year of lease term	  	$	0.96	  	  	$	0.66	  	  	$	1.20	  	  	$	1.01	  	 	 	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	
Total per square foot per year of lease term	  	$	2.78	  	  	$	2.10	  	  	$	2.59	  	  	$	2.86	  	 	 	 	

New Leases	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	
Number of leases	  	 	35	  	  	 	28	  	  	 	37	  	  	 	44	  	 	 	 	
Square feet	  	 	472,240	  	  	 	700,295	  	  	 	747,919	  	  	 	508,605	  	 	 	 	
Tenant improvements per square foot(1)	  	$	27.75	  	  	$	45.04	  	  	$	30.59	  	  	$	24.93	  	 	 	 	
Leasing commissions per square foot	  	$	9.72	  	  	$	17.12	  	  	$	15.95	  	  	$	10.39	  	 	 	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	
Total per square foot	  	$	37.47	  	  	$	62.16	  	  	$	46.54	  	  	$	35.32	  	 	 	 	
 	 	 	 	 	 	 	 	
Tenant improvements per square foot per year of lease term	  	$	3.65	  	  	$	4.05	  	  	$	3.24	  	  	$	3.29	  	 	 	 	
Leasing commissions per square foot per year of lease term	  	$	1.28	  	  	$	1.54	  	  	$	1.69	  	  	$	1.37	  	 	 	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	
Total per square foot per year of lease term	  	$	4.93	  	  	$	5.59	  	  	$	4.93	  	  	$	4.66	  	 	 	 	

Total	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	
Number of leases	  	 	61	  	  	 	62	  	  	 	71	  	  	 	83	  	 	 	 	
Square feet	  	 	1,324,751	  	  	 	2,269,190	  	  	 	1,715,878	  	  	 	2,180,988	  	 	 	 	
Tenant improvements per square foot(1)	  	$	19.70	  	  	$	22.21	  	  	$	18.01	  	  	$	15.93	  	 	 	 	
Leasing commissions per square foot	  	$	8.65	  	  	$	9.09	  	  	$	11.00	  	  	$	7.93	  	 	 	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	
Total per square foot	  	$	28.35	  	  	$	31.30	  	  	$	29.01	  	  	$	23.86	  	 	 	 	
 	 	 	 	 	 	 	 	
Tenant improvements per square foot per year of lease term	  	$	2.43	  	  	$	2.42	  	  	$	2.41	  	  	$	2.21	  	 	 	 	
Leasing commissions per square foot per year of lease term	  	$	1.07	  	  	$	0.99	  	  	$	1.47	  	  	$	1.10	  	 	 	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	
Total per square foot per year of lease term	  	$	3.50	  	  	$	3.41	  	  	$	3.88	  	  	$	3.31	  	 	 	 	

NOTE: This information is presented for our consolidated office assets only.
 
(1)	For leases in which a tenant may use, at its discretion, a portion of its tenant improvement allowance for expenses other than those related to improvements to its space, an assumption is made that the tenant elects to use any such portion of its tenant improvement allowance for improvements to its space prior to the commencement of its lease. This assumption is made based upon the historical tenant improvement allowance usage patterns of the Company’s tenants.	
 
25

 
Piedmont Office Realty Trust, Inc.
Geographic Diversification
As of September 30, 2010

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Location	  	Number of
Properties	 	  	Annualized Lease
Revenue ($’s in
thousands)	 	  	Percentage of
Annualized Lease
Revenue (%)	 	  	Rentable Square
Footage (in
Thousands)	 	  	Percentage of
Rentable Square
Footage (%)	 	  	Leased Square
Footage (in
thousands)	 	  	Percent Leased
(%)	 	
Chicago	  	 	6	  	  	$	155,136	  	  	 	26.6	  	  	 	4,889	  	  	 	23.9	  	  	 	4,321	  	  	 	88.4	  	
Washington, D.C.	  	 	14	  	  	 	116,534	  	  	 	19.9	  	  	 	3,045	  	  	 	14.9	  	  	 	2,607	  	  	 	85.6	  	
New York	  	 	9	  	  	 	98,067	  	  	 	16.8	  	  	 	3,330	  	  	 	16.3	  	  	 	3,158	  	  	 	94.8	  	
Minneapolis	  	 	2	  	  	 	37,315	  	  	 	6.4	  	  	 	1,228	  	  	 	6.0	  	  	 	1,218	  	  	 	99.2	  	
Los Angeles	  	 	5	  	  	 	30,687	  	  	 	5.3	  	  	 	1,140	  	  	 	5.6	  	  	 	942	  	  	 	82.6	  	
Dallas	  	 	7	  	  	 	26,711	  	  	 	4.6	  	  	 	1,275	  	  	 	6.2	  	  	 	1,163	  	  	 	91.2	  	
Boston	  	 	4	  	  	 	23,782	  	  	 	4.1	  	  	 	583	  	  	 	2.9	  	  	 	562	  	  	 	96.4	  	
Detroit	  	 	4	  	  	 	19,320	  	  	 	3.3	  	  	 	929	  	  	 	4.5	  	  	 	753	  	  	 	81.1	  	
Philadelphia	  	 	1	  	  	 	14,897	  	  	 	2.5	  	  	 	761	  	  	 	3.7	  	  	 	761	  	  	 	100.0	  	
Atlanta	  	 	4	  	  	 	11,866	  	  	 	2.0	  	  	 	749	  	  	 	3.7	  	  	 	469	  	  	 	62.6	  	
Houston	  	 	1	  	  	 	9,562	  	  	 	1.6	  	  	 	313	  	  	 	1.5	  	  	 	313	  	  	 	100.0	  	
Nashville	  	 	1	  	  	 	6,975	  	  	 	1.2	  	  	 	312	  	  	 	1.5	  	  	 	312	  	  	 	100.0	  	
Phoenix	  	 	4	  	  	 	6,287	  	  	 	1.1	  	  	 	557	  	  	 	2.7	  	  	 	344	  	  	 	61.8	  	
Central & South Florida	  	 	3	  	  	 	6,127	  	  	 	1.0	  	  	 	299	  	  	 	1.5	  	  	 	264	  	  	 	88.3	  	
Austin	  	 	1	  	  	 	5,428	  	  	 	0.9	  	  	 	195	  	  	 	1.0	  	  	 	195	  	  	 	100.0	  	
Portland	  	 	4	  	  	 	5,135	  	  	 	0.9	  	  	 	325	  	  	 	1.6	  	  	 	325	  	  	 	100.0	  	
Seattle	  	 	1	  	  	 	4,408	  	  	 	0.8	  	  	 	156	  	  	 	0.8	  	  	 	154	  	  	 	98.7	  	
Cleveland	  	 	2	  	  	 	3,256	  	  	 	0.6	  	  	 	187	  	  	 	0.9	  	  	 	175	  	  	 	93.6	  	
Denver	  	 	1	  	  	 	2,712	  	  	 	0.4	  	  	 	156	  	  	 	0.8	  	  	 	156	  	  	 	100.0	  	

Total/Weighted Average	  	 	74	  	  	$	584,205	  	  	 	100.0	  	  	 	20,429	  	  	 	100.0	  	  	 	18,192	  	  	 	89.0	  	

 
26

 
Piedmont Office Realty Trust, Inc.
Industry Diversification
As of September 30, 2010

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
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	  	 	5	  	  	 	1.3	  	  	$	104,966	  	  	 	18.0	  	  	 	2,528	  	  	 	13.9	  	
Business Services	  	 	59	  	  	 	15.1	  	  	 	71,227	  	  	 	12.2	  	  	 	2,261	  	  	 	12.4	  	
Depository Institutions	  	 	15	  	  	 	3.8	  	  	 	55,269	  	  	 	9.5	  	  	 	1,858	  	  	 	10.2	  	
Legal Services	  	 	10	  	  	 	2.6	  	  	 	39,930	  	  	 	6.8	  	  	 	1,055	  	  	 	5.8	  	
Insurance Carriers	  	 	20	  	  	 	5.1	  	  	 	35,966	  	  	 	6.2	  	  	 	1,468	  	  	 	8.1	  	
Petroleum Refining & Related Industries	  	 	1	  	  	 	0.3	  	  	 	31,851	  	  	 	5.5	  	  	 	776	  	  	 	4.3	  	
Chemicals & Allied Products	  	 	8	  	  	 	2.0	  	  	 	24,684	  	  	 	4.2	  	  	 	736	  	  	 	4.0	  	
Nondepository Credit Institutions	  	 	10	  	  	 	2.6	  	  	 	20,157	  	  	 	3.5	  	  	 	737	  	  	 	4.1	  	
Engineering, Accounting, Research, Management & Related Services	  	 	25	  	  	 	6.4	  	  	 	20,139	  	  	 	3.4	  	  	 	563	  	  	 	3.1	  	
Communications	  	 	31	  	  	 	7.9	  	  	 	17,156	  	  	 	2.9	  	  	 	595	  	  	 	3.3	  	
Security & Commodity Brokers, Dealers, Exchanges & Services	  	 	18	  	  	 	4.6	  	  	 	15,322	  	  	 	2.6	  	  	 	539	  	  	 	3.0	  	
Food & Kindred Products	  	 	4	  	  	 	1.0	  	  	 	15,001	  	  	 	2.6	  	  	 	449	  	  	 	2.5	  	
Electronic & Other Electrical Equipment & Components, Except Computer	  	 	10	  	  	 	2.6	  	  	 	13,964	  	  	 	2.4	  	  	 	622	  	  	 	3.4	  	
Educational Services	  	 	8	  	  	 	2.0	  	  	 	11,977	  	  	 	2.1	  	  	 	279	  	  	 	1.5	  	
Transportation Equipment	  	 	3	  	  	 	0.8	  	  	 	10,523	  	  	 	1.8	  	  	 	325	  	  	 	1.8	  	
Other	  	 	165	  	  	 	41.9	  	  	 	96,073	  	  	 	16.3	  	  	 	3,401	  	  	 	18.6	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	 	392	  	  	 	100.0	  	  	$	584,205	  	  	 	100.0	  	  	 	18,192	  	  	 	100.0	  	

 
27

 
Piedmont Office Realty Trust, Inc.
Other Investments
As of September 30, 2010

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INDUSTRIAL PROPERTIES	 	Location	 	 	Percent
Ownership (%)	 	 	Year Built	 	 	 	 	 	Real Estate Net
Book
Value ($’s in
thousands)	 	 	Rentable Square
Footage (in
thousands)	 	 	Percent
Leased (%)	 	
112 Hidden Lake Circle	 	 	Duncan, SC	  	 	 	100	  	 	 	1987	  	 	 	 	 	 	$	9,132	  	 	 	313.4	  	 	 	100.0	  	
110 Hidden Lake Circle	 	 	Duncan, SC	  	 	 	100	  	 	 	1987	  	 	 	 	 	 	 	13,305	  	 	 	473.4	  	 	 	36.8	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	22,437	  	 	 	786.8	  	 	 	61.9	  	

UNCONSOLIDATED
JOINT VENTURE PROPERTIES	 	Location	 	 	Percent
Ownership (%)	 	 	Year Built	 	 	Piedmont
Share of Real
Estate Net
Book Value
($’s in
thousands)	 	 	Real Estate Net
Book
Value ($’s in
thousands)	 	 	Rentable Square
Footage (in
thousands)	 	 	Percent
Leased (%)	 	
14400 Hertz Quail Springs Parkway	 	 	Oklahoma City, OK	  	 	 	4	  	 	 	1997	  	 	$	150	  	 	$	4,067	  	 	 	57.2	  	 	 	100.0	  	
360 Interlocken	 	 	Broomfield, CO	  	 	 	4	  	 	 	1996	  	 	 	238	  	 	 	6,456	  	 	 	51.7	  	 	 	17.8	  	
47300 Kato Road	 	 	Fremont, CA	  	 	 	78	  	 	 	1982	  	 	 	2,684	  	 	 	3,464	  	 	 	58.4	  	 	 	0.0	  	
20/20 Building	 	 	Leawood, KS	  	 	 	57	  	 	 	1992	  	 	 	2,692	  	 	 	4,743	  	 	 	68.3	  	 	 	90.8	  	
4685 Investment Drive	 	 	Troy, MI	  	 	 	55	  	 	 	2000	  	 	 	5,262	  	 	 	9,565	  	 	 	77.1	  	 	 	100.0	  	
5301 Maryland Way	 	 	Brentwood, TN	  	 	 	55	  	 	 	1989	  	 	 	11,220	  	 	 	20,396	  	 	 	201.2	  	 	 	100.0	  	
8560 Upland Drive	 	 	Parker, CO	  	 	 	72	  	 	 	2001	  	 	 	7,786	  	 	 	10,830	  	 	 	148.2	  	 	 	100.0	  	
Two Park Center	 	 	Hoffman Estates, IL	  	 	 	72	  	 	 	1999	  	 	 	11,816	  	 	 	16,436	  	 	 	193.7	  	 	 	83.0	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	41,848	  	 	$	75,957	  	 	 	855.8	  	 	 	83.6	  	

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	  	 	 	 	 	 	 	 	 	 	 	 	 	 	$	48,170	  	 	 	 	 	 	 	 	 	
Mezzanine Loan(1)	 	 	Chicago, IL	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	12,500	  	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	60,670	  	 	 	 	 	 	 	 	 	

(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. For additional information on this investment, please refer to our Quarterly Report on Form 10-Q as of and for the period ended September 30, 2010.	
 
28

 
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 report 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 32-35.
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 expense reimbursements, 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 or operating expense reimbursements 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) the monthly base rental payment plus any operating expense reimbursements 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 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 other GAAP basis liquidity measures. 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 adjusting 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 real estate operating income with the add-back of corporate general and administrative expense, depreciation and amortization, and casualty and impairment losses and the deduction of income and expense associated with lease terminations and income associated with property management performed by Piedmont for other organizations. We present this measure on an accrual basis and 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, adding back 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: Incremental Capital Expenditures are 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.
 
29

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 interests in eight properties owned through unconsolidated partnerships. We present this measure on an accrual basis and 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: Non-Incremental Capital Expenditures are 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 year reporting periods. Same Store NOI excludes amounts attributable to industrial properties. We present this measure on an accrual basis and 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 year reporting periods. Same Store Properties excludes industrial properties. We believe Same Store Properties is an important measure of comparison of our stabilized portfolio performance.
 
30

 
Piedmont Office Realty Trust, Inc.
Research Coverage

 
 	 	 	 	 	
Paul E. Adornato, CFA	 	John W. Guinee, III	 	Brendon Maiorana	
BMO Capital Markets	 	Stifel, Nicolaus & Company	 	Wells Fargo	
3 Time Square	 	One South Street	 	7 St. Paul Street	
New York, NY 10036	 	16th Floor	 	MAC R1230-011	
Phone: (212) 885-4170	 	Baltimore, MD 21202	 	Baltimore, MD 21202	
 	 	Phone: (443) 224-1307	 	Phone: (443) 263-6516	
 	 	 	
Anthony Paolone, CFA	 	David B. Rodgers, CFA	 	Stephen C. Swett	
JP Morgan	 	RBC Capital Markets	 	Morgan Keegan & Co.	
277 Park Avenue	 	Arbor Court	 	535 Madison Avenue	
New York, NY 10172	 	30575 Bainbridge Road, Suite 250	 	10th Floor	
Phone: (212) 622-6682	 	Solon, OH 44139	 	New York, NY 10022	
 	 	Phone: (440) 715-2647	 	Phone: (212) 508-7585	
 
31

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	 	Nine Months Ended	 	
 	  	9/30/2010	 	 	6/30/2010	 	 	3/31/2010	 	 	12/31/2009	 	 	9/30/2009	 	 	9/30/2010	 	 	9/30/2009	 	
Net income attributable to Piedmont	  	$	40,584	  	 	$	19,636	  	 	$	31,460	  	 	$	25,946	  	 	$	(8,260	) 	 	$	91,679	  	 	$	48,754	  	
 	 	 	 	 	 	 	 	
Non-controlling interest	  	 	158	  	 	 	125	  	 	 	125	  	 	 	119	  	 	 	121	  	 	 	409	  	 	 	359	  	
Interest expense	  	 	17,359	  	 	 	18,933	  	 	 	19,091	  	 	 	19,488	  	 	 	19,518	  	 	 	55,383	  	 	 	58,255	  	
Depreciation	  	 	26,339	  	 	 	26,050	  	 	 	26,428	  	 	 	27,434	  	 	 	27,159	  	 	 	78,818	  	 	 	80,075	  	
Amortization	  	 	11,119	  	 	 	11,104	  	 	 	11,488	  	 	 	16,274	  	 	 	14,094	  	 	 	33,711	  	 	 	41,434	  	
Impairment loss on real estate assets	  	 	53	  	 	 	9,587	  	 	 	—  	  	 	 	—  	  	 	 	37,633	  	 	 	9,641	  	 	 	37,633	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core EBITDA	  	 	95,612	  	 	 	85,435	  	 	 	88,592	  	 	 	89,261	  	 	 	90,265	  	 	 	269,641	  	 	 	266,510	  	
 	 	 	 	 	 	 	 	
General & administrative expenses	  	 	7,001	  	 	 	7,993	  	 	 	6,696	  	 	 	6,297	  	 	 	5,757	  	 	 	21,690	  	 	 	21,262	  	
Management fee revenue	  	 	(806	) 	 	 	(705	) 	 	 	(753	) 	 	 	(928	) 	 	 	(742	) 	 	 	(2,265	) 	 	 	(2,183	) 	
Interest and other income	  	 	(993	) 	 	 	(1,036	) 	 	 	(969	) 	 	 	(652	) 	 	 	(1,989	) 	 	 	(2,998	) 	 	 	(3,798	) 	
Lease termination income	  	 	(4,230	) 	 	 	(479	) 	 	 	(496	) 	 	 	(1,982	) 	 	 	—  	  	 	 	(5,205	) 	 	 	(782	) 	
Lease termination expense - straight line rent & acquisition intangibles write-offs	  	 	131	  	 	 	679	  	 	 	67	  	 	 	552	  	 	 	627	  	 	 	876	  	 	 	801	  	
Straight line rent adjustment	  	 	(3,053	) 	 	 	(1,463	) 	 	 	1,006	  	 	 	(2,619	) 	 	 	(1,508	) 	 	 	(3,508	) 	 	 	(190	) 	
Net effect of amortization of above/(below) market in-place lease intangibles	  	 	(1,510	) 	 	 	(1,525	) 	 	 	(1,426	) 	 	 	(1,212	) 	 	 	(1,249	) 	 	 	(4,461	) 	 	 	(3,727	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core net operating income	  	 	92,152	  	 	 	88,899	  	 	 	92,717	  	 	 	88,717	  	 	 	91,161	  	 	 	273,770	  	 	 	277,893	  	
 	 	 	 	 	 	 	 	
Acquisitions	  	 	2	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	2	  	 	 	—  	  	
Industrial properties	  	 	(91	) 	 	 	(91	) 	 	 	(273	) 	 	 	(638	) 	 	 	(638	) 	 	 	(456	) 	 	 	(1,920	) 	
Unconsolidated joint ventures	  	 	(1,217	) 	 	 	(1,186	) 	 	 	(1,268	) 	 	 	(1,156	) 	 	 	(1,171	) 	 	 	(3,670	) 	 	 	(3,637	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Same Store NOI	  	$	90,846	  	 	$	87,622	  	 	$	91,176	  	 	$	86,923	  	 	$	89,352	  	 	$	269,646	  	 	$	272,336	  	

32

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	 	Nine Months Ended	 	
 	  	9/30/2010	 	 	6/30/2010	 	 	3/31/2010	 	 	12/31/2009	 	 	9/30/2009	 	 	9/30/2010	 	 	9/30/2009	 	
Equity in Income of Unconsolidated JVs	  	$	619	  	 	$	647	  	 	$	737	  	 	$	672	  	 	($	1,985	) 	 	$	2,003	  	 	($	568	) 	
 	 	 	 	 	 	 	 	
Interest expense	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation	  	 	329	  	 	 	337	  	 	 	348	  	 	 	344	  	 	 	367	  	 	 	1,014	  	 	 	1,093	  	
Amortization	  	 	101	  	 	 	101	  	 	 	101	  	 	 	101	  	 	 	104	  	 	 	302	  	 	 	307	  	
Impairment loss	  	 	53	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	2,570	  	 	 	53	  	 	 	2,570	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core EBITDA	  	 	1,102	  	 	 	1,085	  	 	 	1,186	  	 	 	1,117	  	 	 	1,056	  	 	 	3,372	  	 	 	3,402	  	
 	 	 	 	 	 	 	 	
General & administrative expenses	  	 	40	  	 	 	38	  	 	 	66	  	 	 	71	  	 	 	56	  	 	 	145	  	 	 	94	  	
 	 	 	 	 	 	 	 	
Interest and other income	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	

Core net operating income (accrual basis)	  	 	1,142	  	 	 	1,123	  	 	 	1,252	  	 	 	1,188	  	 	 	1,112	  	 	 	3,517	  	 	 	3,496	  	
Straight-line effects of lease revenue	  	 	76	  	 	 	64	  	 	 	17	  	 	 	(31	) 	 	 	60	  	 	 	157	  	 	 	145	  	
Net effect of amortization of above/(below) market in-place lease intangibles	  	 	(1	) 	 	 	(1	) 	 	 	(1	) 	 	 	(1	) 	 	 	(1	) 	 	 	(4	) 	 	 	(4	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core net operating income (cash basis)	  	$	1,217	  	 	$	1,186	  	 	$	1,268	  	 	$	1,156	  	 	$	1,171	  	 	$	3,670	  	 	$	3,637	  	

33

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	 	Nine Months Ended	 	
 	  	9/30/2010	 	 	6/30/2010	 	 	3/31/2010	 	 	12/31/2009	 	 	9/30/2009	 	 	9/30/2010	 	 	9/30/2009	 	
NET INCOME/ (LOSS) ATTRIBUTABLE TO PIEDMONT	  	$	40,584	  	 	$	19,636	  	 	$	31,460	  	 	$	25,946	  	 	 	($ 8,260	) 	 	$	91,679	  	 	$	48,754	  	
 	 	 	 	 	 	 	 	
Depreciation	  	 	26,163	  	 	 	25,872	  	 	 	26,250	  	 	 	27,264	  	 	 	27,004	  	 	 	78,285	  	 	 	79,614	  	
Amortization	  	 	11,119	  	 	 	11,104	  	 	 	11,488	  	 	 	16,274	  	 	 	14,094	  	 	 	33,711	  	 	 	41,434	  	

FUNDS FROM OPERATIONS (FFO)	  	$	77,866	  	 	$	56,612	  	 	$	69,198	  	 	$	69,484	  	 	$	32,838	  	 	$	203,675	  	 	$	169,802	  	

Impairment loss	  	 	53	  	 	 	9,587	  	 	 	0	  	 	 	0	  	 	 	37,633	  	 	 	9,641	  	 	 	37,633	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
CORE FUNDS FROM OPERATIONS	  	$	77,919	  	 	$	66,199	  	 	$	69,198	  	 	$	69,484	  	 	$	70,471	  	 	$	213,316	  	 	$	207,435	  	

Depreciation of non real estate assets	  	 	176	  	 	 	178	  	 	 	178	  	 	 	171	  	 	 	155	  	 	 	533	  	 	 	461	  	
Stock-based and other non-cash compensation expense	  	 	1,095	  	 	 	711	  	 	 	653	  	 	 	671	  	 	 	671	  	 	 	2,458	  	 	 	2,506	  	
Deferred financing cost amortization	  	 	607	  	 	 	696	  	 	 	696	  	 	 	696	  	 	 	696	  	 	 	2,000	  	 	 	2,090	  	
Straight-line effects of lease revenue	  	 	(2,921	) 	 	 	(784	) 	 	 	1,073	  	 	 	(1,618	) 	 	 	(847	) 	 	 	(2,632	) 	 	 	622	  	
Amortization of lease related intangibles	  	 	(1,510	) 	 	 	(1,525	) 	 	 	(1,426	) 	 	 	(1,663	) 	 	 	(1,283	) 	 	 	(4,461	) 	 	 	(3,736	) 	
Income from amortization of discount on purchase of mezzanine loans	  	 	(569	) 	 	 	(694	) 	 	 	(668	) 	 	 	(334	) 	 	 	(648	) 	 	 	(1,932	) 	 	 	(1,944	) 	
 	 	 	 	 	 	 	 	
Non-incremental capital expenditures	  	 	(13,329	) 	 	 	(8,969	) 	 	 	(9,414	) 	 	 	(19,974	) 	 	 	(7,851	) 	 	 	(31,712	) 	 	 	(26,478	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
ADJUSTED FUNDS FROM OPERATIONS	  	$	61,468	  	 	$	55,812	  	 	$	60,290	  	 	$	47,433	  	 	$	61,364	  	 	$	177,570	  	 	$	180,956	  	

34

 
Piedmont Office Realty Trust, Inc.
Discontinued Operations
Unaudited (in thousands)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	
 	  	9/30/2010	 	  	6/30/2010	 	 	3/31/2010	 	 	12/31/2009	 	  	9/30/2009	 	
Revenues:	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
Rental income	  	$	1,595	  	  	$	1,594	  	 	$	1,594	  	 	$	1,594	  	  	$	1,594	  	
Tenant reimbursements	  	 	—  	  	  	 	—  	  	 	 	(2	) 	 	 	—  	  	  	 	2	  	
Property management fee revenue	  	 	—  	  	  	 	—  	  	 	 	—  	  	 	 	—  	  	  	 	—  	  	
Other rental income	  	 	—  	  	  	 	—  	  	 	 	—  	  	 	 	—  	  	  	 	—  	  	
 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
Total revenues	  	 	1,595	  	  	 	1,594	  	 	 	1,592	  	 	 	1,594	  	  	 	1,596	  	
 	 	 	 	 	 	
Operating expenses:	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
Property operating costs	  	 	5	  	  	 	8	  	 	 	8	  	 	 	19	  	  	 	26	  	
Depreciation	  	 	—  	  	  	 	130	  	 	 	389	  	 	 	389	  	  	 	389	  	
Amortization	  	 	—  	  	  	 	—  	  	 	 	—  	  	 	 	—  	  	  	 	—  	  	
General and administrative	  	 	156	  	  	 	2	  	 	 	10	  	 	 	7	  	  	 	45	  	
 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
Total operating expenses	  	 	161	  	  	 	140	  	 	 	407	  	 	 	415	  	  	 	460	  	

Operating income, excluding impairment loss	  	 	1,434	  	  	 	1,454	  	 	 	1,185	  	 	 	1,179	  	  	 	1,136	  	
 	 	 	 	 	 	
Impairment loss	  	 	—  	  	  	 	(9,587	) 	 	 	—  	  	 	 	—  	  	  	 	—  	  	
 	 	 	 	 	 	
(Loss) / income from discontinued operations	  	$	1,434	  	  	$	(8,133	) 	 	$	1,185	  	 	$	1,179	  	  	$	1,136	  	

35

 
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; adverse market and economic conditions and related impairments to the Company’s assets, including, but not limited to, receivables, real estate assets and other intangible assets; 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; the impact of outstanding or potential litigation; and other factors detailed in our most recent Annual Report on Form 10-K and our Quarterly Report on Form 10-Q as of and for the period ended September 30, 2010 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 report. We cannot guarantee the accuracy of any such forward-looking statements contained in this supplemental report, 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.
 
36