UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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):  October 31, 2013
 
Piedmont Office Realty Trust, Inc.
(Exact name of registrant as specified in its charter)
 
Commission File Number:  001-34626

 	 	 	
Maryland	 	58-2328421	
(State or other jurisdiction of	 	(IRS Employer	
incorporation)	 	Identification No.)	

11695 Johns Creek Parkway
Suite 350
Johns Creek, GA 30097-1523
(Address of principal executive offices, including zip code)
 
770-418-8800
(Registrant's telephone number, including area code)
 
(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:
[  ]   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 October 31, 2013, Piedmont Office Realty Trust, Inc. (the “Registrant”) issued a press release announcing its financial results for the third quarter 2013, and published supplemental information for the third quarter 2013 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 October 31, 2013.	
 	 	 	
99.2	 	Piedmont Office Realty Trust, Inc. Quarterly Supplemental Information for the Third Quarter 2013.	

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)	
 	 	 	 	 	
Date: October 31, 2013	 	By:	 	/s/    Robert E. Bowers	
 	 	 	 	Robert E. Bowers	
 	 	 	 	Chief Financial Officer and Executive Vice President	

EXHIBIT INDEX

 	
 	 	 	
Exhibit No.	 	Description	
99.1	 	Press release dated October 31, 2013.	
 	 	 	
99.2	 	Piedmont Office Realty Trust, Inc. Quarterly Supplemental Information for the Third Quarter 2013.	

EXHIBIT 99.1

Piedmont Office Realty Trust Reports Third Quarter Results and Renewal of Stock Repurchase Plan
ATLANTA, October 31, 2013 --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, 2013.
Highlights for the three months ended September 30, 2013:
 	 	
•	Completed 1.5 million square feet of leasing, which represents the largest single leasing quarter in Piedmont's fifteen-year operating history;	
 	 	
•	Achieved Core Funds From Operations ("CFFO") of $0.37 per diluted share;	
 	 	
•	Purchased the remaining interest in three assets previously held through joint ventures and a strategic land parcel adjacent to our Connection Drive assets in the Las Colinas sub-market of Dallas, TX;	
 	 	
•	Placed its last wholly-owned, Colorado asset under contract to sell;	
 	 	
•	Repurchased approximately 5.4 million shares of its common stock during the quarter, bringing the total shares repurchased since inception of the program to 11.9 million shares at an average price of $17.16.	

Donald A. Miller, CFA, President and Chief Executive Officer said, "We delivered record leasing results this quarter, including a key renewal at our 1901 Market Street asset in Philadelphia. We are pleased with these results but remain focused on finding solutions for the larger leasing opportunities within our portfolio, principally in downtown Chicago and Washington, D.C.”

Results for the three months ended September 30, 2013

Piedmont's net income available to common stockholders for the third quarter of 2013 was $19.1 million, or $0.12 per diluted share, as compared with $10.8 million, or $0.06 per diluted share, for the third quarter of 2012. The current quarter includes $3.9 million, or approximately $0.02 per diluted share, in net insurance recoveries related to casualty losses incurred in prior periods, whereas the third quarter of the prior year included $7.5 million, or approximately $0.04 per diluted share, of litigation settlement expense. In addition, the current quarter reflects increased interest expense primarily associated with higher outstanding debt balances during the current quarter as a result of property acquisitions made by the Company earlier this year.
Revenues for the quarter ended September 30, 2013 were $145.1 million, as compared with $132.6 million for the same period a year ago, primarily reflecting increased revenue associated with the acquisition of two additional properties during the first quarter of 2013 as well as the commencement of several significant leases over the previous twelve months, offset by the loss of revenue associated with the expiration of a 330,000 square foot lease in the Company's Washington, D.C. portfolio in March.
Property operating costs were $58.8 million for the quarter ended September 30, 2013, as compared to the prior period of $50.5 million, primarily as a result of additional expenses associated with properties acquired during the first quarter of 2013 and higher recoverable property tax expense recognized at certain

properties during the current quarter. General and administrative expenses were $5.8 million for the current quarter, comparable to $5.5 million for the quarter ended September 30, 2012.
Funds From Operations ("FFO") for the current quarter totaled $65.0 million, or $0.39 per diluted share, as compared with $55.2 million, or $0.33 per diluted share, for the quarter ended September 30, 2012. The current quarter includes $3.9 million, or approximately $0.02 per diluted share, in net insurance recoveries related to casualty losses incurred in prior periods, whereas the third quarter of the prior year included $7.5 million, or approximately $0.04 per diluted share, of litigation settlement expense. In addition, the current quarter reflects increased interest expense primarily associated with higher outstanding debt balances during the current quarter as a result of property acquisitions made by the Company earlier this year.

Core FFO, which excludes the insurance recoveries and litigation settlement expense mentioned above, as well as acquisition costs, totaled $61.1 million, or $0.37 per diluted share, for the current quarter, as compared to $62.7 million, or $0.37 per diluted share, for the quarter ended September 30, 2012, with the per share results reflecting a 4.1 million reduction in weighted average shares outstanding as a result of shares repurchased over the previous twelve months pursuant to the Company's stock repurchase plan.

Adjusted FFO (“AFFO”) for the third quarter of 2013 totaled $34.0 million, or $0.21 per diluted share, as compared to  $20.4 million , or  $0.12  per diluted share, in the third quarter of 2012, primarily reflecting lower capital expenditures in the current period than in the prior period.

Leasing Update

During the third quarter of 2013, the Company executed approximately 1.5 million square feet of leasing throughout its markets. Of the leases signed during the quarter, approximately 1.0 million square feet, or 68%, was renewal-related and 488,000 square feet, or 32%, was with new tenants.

Same store net operating income (on a cash basis) for the quarter was $72.8 million, a 5.8% decrease from the third quarter of the prior year, primarily as a result of the loss of revenue associated with the expiration of a 330,000 square foot lease in the Company's Washington, D.C. portfolio during the first quarter of 2013 as well as $2.7 million of one-time property tax recoveries recorded in third quarter of 2012. As of September 30, 2013, the Company had approximately 1.5 million square feet of commenced leases that were in some form of abatement, as well as approximately 0.5 million square feet of executed leases for currently vacant space yet to commence.

The Company's overall portfolio was 86.7% leased as of September 30, 2013, with a weighted average lease term remaining of approximately 7.3 years. The stabilized portfolio was 89.5% leased as of September 30, 2013 as compared to 90.1% leased as of September 30, 2012. Details outlining Piedmont's significant upcoming lease expirations and the status of current leasing activity can be found in the Company's quarterly supplemental information package available at www.piedmontreit.com.
Capital Markets, Financing and Other Activities
During the three months ended September 30, 2013, the Company purchased the remaining interest in three assets that it had previously held through two joint venture arrangements. As a result of now owning 100% of these assets, Piedmont converted from accounting for the three assets as equity method investments to accounting for them as consolidated assets and recognized a loss on consolidation of $0.9 million, which is included in the accompanying consolidated statement of operations. Piedmont

anticipates that obtaining sole control of these assets will facilitate its leasing and subsequent disposition strategies for the assets.

Also during the quarter, Piedmont purchased a 10.6 acre land parcel strategically located adjacent to its Connection Drive properties in the Las Colinas sub-market of Dallas, TX. The land, which is zoned for future office development, could also be utilized for additional parking requirements at the Company's Connection Drive assets.

Additionally, during the quarter ended September 30, 2013, Piedmont entered into a binding agreement to sell the 350 Spectrum Loop Building located in Colorado Springs, CO for approximately $30.1 million, or $193 per square foot. The 156,000 square foot building is currently 100% leased to a single corporate tenant. The sale is expected to close in November 2013 and is Piedmont's last wholly-owned asset in the Colorado market.

Finally, during the quarter, the Company purchased 5.4 million shares of its common stock, bringing the total stock repurchased through September 30, 2013 under the Company's $300 million stock repurchase plan to 11.9 million shares at an average purchase price of $17.16 per share.

Piedmont's gross assets amounted to $5.6 billion as of September 30, 2013. Total debt was approximately $1.8 billion as of September 30, 2013 as compared to $1.4 billion as of December 31, 2012 primarily as a result of two property acquisitions totaling $248.0 million which were completed during the first quarter of 2013. The Company's total debt-to-gross assets ratio was 32.5% as of September 30, 2013 as compared with 27.2% as of December 31, 2012. Net debt to annualized core EBITDA ratio was 5.6 x and the Company`s fixed charge coverage ratio was 4.2 x. As of September 30, 2013, Piedmont had cash and capacity on its unsecured line of credit of approximately $311.9 million.

Subsequent to Quarter End

Dividend

On October 30, 2013, the Board of Directors of Piedmont declared a dividend for the fourth quarter of 2013 in the amount of $0.20 per common share outstanding to stockholders of record as of the close of business on November 29, 2013. Such dividends are to be paid on December 20, 2013.

Amendment and Restatement of Stock Repurchase Program

Our current stock repurchase plan expires in November of 2013. On October 30, 2013, the Board of Directors of Piedmont amended and restated the plan to authorize the purchase of up to $150 million of the Company's Common Stock over the next two years. The Company may repurchase the shares from time to time, in accordance with applicable securities laws, in the open market or in privately negotiated transactions. Repurchases will depend upon market conditions and other factors, and repurchases may be commenced or suspended from time to time in the Company's discretion, without prior notice.
Guidance for 2013
Based on management's expectations, the Company is increasing and narrowing its guidance for full-year 2013 to the following range:

 	
 	 	 	 	 	
 	 	Low	 	High	
Net Income	 	$98	-	104 Million	
Add: Depreciation and Amortization	 	$168	-	172 Million	
Add: Impairment Loss and Loss on Consolidation	 	$7	-	7 Million	
Deduct: Net Gain on Property Dispositions	 	$24	-	29 Million	
Deduct: Estimated Net Insurance Recoveries	 	$9	-	11 Million	
Core FFO	 	$240	-	243 Million	
Core FFO per diluted share	 	$1.45	-	$1.47	

These estimates reflect management's view of current market conditions and incorporate certain economic and operational assumptions and projections. Actual results could differ from these estimates. Note that individual quarters may fluctuate on both a cash basis and an accrual basis due to lease commencements and expirations, the timing of repairs and maintenance, capital expenditures, capital markets activities 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 web cast for Friday, November 1, 2013 at 10:00 A.M. Eastern daylight time ("EDT"). The live audio web cast of the call may be accessed on the Company's website at www.piedmontreit.com in the Investor Relations section. Dial-in numbers are (888)  287-5563  for participants in the United States and Canada and (719) 325-2452  for international participants. The pass code is  5728721 . A replay of the conference call will be available from 1:00 pm EDT on November 1, 2013 until 1:00 pm EDT on November 15, 2013, and can be accessed by dialing (888)203-1112 for participants in the United States and Canada and (719)457-0820 for international participants, followed by pass code 5728721 . A web cast replay will also be available after the conference call in the Investor Relations section of the Company's website. During the audio web cast and conference call, the Company's management team will review third quarter 2013 performance, discuss recent events and conduct a question-and-answer period.
Supplemental Information
Quarterly Supplemental Information as of and for the period ended September 30, 2013 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. (NYSE: PDM) is a fully-integrated and self-managed real estate investment trust (REIT) specializing in high-quality, Class A office properties located primarily in the ten largest U.S. office markets, including Chicago, Washington, D.C., New York, Los Angeles, Boston, and Dallas. As of September 30, 2013, Piedmont's 77 wholly-owned office buildings were comprised of over 21 million rentable square feet. The Company is headquartered in Atlanta, GA, with local management

offices in each of its major markets. Piedmont is investment-grade rated by Standard & Poor's and Moody's and has maintained a low-leverage strategy while acquiring and disposing of properties during its fifteen year operating history. For more information, see  www.piedmontreit.com .

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"). The Company intends 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 the Company`s 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 Company's estimated range of Net Income, Depreciation and Amortization, Insurance Recoveries, Core FFO and Core FFO per diluted share for the year ending December 31, 2013.  

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: market and economic conditions remain challenging and the demand for office space, rental rates and property values may continue to lag the general economic recovery causing the Company's business, results of operations, cash flows, financial condition and access to capital to be adversely affected or otherwise impact performance, including the potential recognition of impairment charges; the success of the Company's real estate strategies and investment objectives, including the Company's ability to identify and consummate suitable acquisitions; 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 on terms similar to existing leases; changes in the economies and other conditions of the office market in general and of the specific markets in which the Company operates, particularly in Chicago, Washington, D.C., and the New York metropolitan area; economic and regulatory changes, including accounting standards, that impact the real estate market generally; additional risks and costs associated with directly managing properties occupied by government tenants; adverse market and economic conditions may continue to adversely affect the Company and could cause the Company to recognize impairment charges or otherwise impact the Company's performance; availability of financing and the Company's lending banks' ability to honor existing line of credit commitments; costs of complying with governmental laws and regulations; uncertainties associated with environmental and other regulatory matters; potential changes in political environment and reduction in federal and/or state funding of the Company's governmental tenants; the Company may be subject to litigation, which could have a material adverse effect on the Company's financial condition; the Company's ability to continue to qualify as a real estate investment trust under the Internal Revenue Code; and other factors detailed in the Company`s most recent Annual Report on Form 10-K for the period ended December 31, 2012, and other documents the Company files 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. The Company cannot guarantee the accuracy of any such forward-

looking statements contained in this press release, and the Company does not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Research Analysts/ Institutional Investors Contact:
Eddie Guilbert
770-418-8592
research.analysts@piedmontreit.com

Shareholder Services/Transfer Agent Services Contact:
Computershare, Inc.
866-354-3485
investor.services@piedmontreit.com

 	
 	 	 	 	 	 	 	 	 	
Piedmont Office Realty Trust, Inc.	 	 	 	 	
Consolidated Balance Sheets	 	 	 	 	
(in thousands)	 	 	 	 	
 	September 30, 2013	 	December 31, 2012	 	
 	(unaudited)	 	 	 	
Assets:	 	 	 	 	
Real estate assets, at cost:	 	 	 	 	
Land	$	675,281	
 	 	$	627,351	
 	 	
Buildings and improvements	4,005,385	
 	 	3,768,967	
 	 	
Buildings and improvements, accumulated depreciation	(955,480	)	 	(877,644	)	 	
Intangible lease asset	137,614	
 	 	122,684	
 	 	
Intangible lease asset, accumulated amortization	(70,744	)	 	(67,940	)	 	
Construction in progress	61,162	
 	 	20,373	
 	 	
Real estate assets held for sale, gross	26,471	
 	 	25,254	
 	 	
Real estate assets held for sale, accumulated depreciation and amortization	(6,737	)	 	(6,313	)	 	
Total real estate assets	3,872,952	
 	 	3,612,732	
 	 	
Investments in unconsolidated joint ventures	18,668	
 	 	37,226	
 	 	
Cash and cash equivalents	15,972	
 	 	12,957	
 	 	
Tenant receivables, net of allowance for doubtful accounts	31,006	
 	 	25,038	
 	 	
Straight line rent receivable	135,487	
 	 	121,506	
 	 	
Due from unconsolidated joint ventures	—	
 	 	463	
 	 	
Restricted cash and escrows	385	
 	 	334	
 	 	
Prepaid expenses and other assets	17,610	
 	 	13,022	
 	 	
Goodwill	180,097	
 	 	180,097	
 	 	
Interest rate swaps	19,192	
 	 	1,075	
 	 	
Deferred financing costs, less accumulated amortization	7,990	
 	 	6,454	
 	 	
Deferred lease costs, less accumulated amortization	275,234	
 	 	243,178	
 	 	
Other assets held for sale, net	1,960	
 	 	793	
 	 	
Total assets	$	4,576,553	
 	 	$	4,254,875	
 	 	
Liabilities:	 	 	 	 	
Unsecured debt	$	835,650	
 	 	$	429,000	
 	 	
Secured debt	987,525	
 	 	987,525	
 	 	
Accounts payable, accrued expenses, and accrued capital expenditures	159,675	
 	 	127,263	
 	 	
Deferred income	26,575	
 	 	21,552	
 	 	
Intangible lease liabilities, less accumulated amortization	41,435	
 	 	40,805	
 	 	
Interest rate swaps	5,010	
 	 	8,235	
 	 	
Total liabilities	2,055,870	
 	 	1,614,380	
 	 	
Stockholders' equity :	 	 	 	 	
Common stock	1,613	
 	 	1,676	
 	 	
Additional paid in capital	3,668,424	
 	 	3,667,051	
 	 	
Cumulative distributions in excess of earnings	(1,165,794	)	 	(1,022,681	)	 	
Other comprehensive income/(loss)	14,827	
 	 	(7,160	)	 	
Piedmont stockholders' equity	2,519,070	
 	 	2,638,886	
 	 	
Non-controlling interest	1,613	
 	 	1,609	
 	 	
Total stockholders' equity	2,520,683	
 	 	2,640,495	
 	 	
Total liabilities and stockholders' equity	$	4,576,553	
 	 	$	4,254,875	
 	 	
Net Debt (Debt less cash and cash equivalents and restricted cash and escrows)	1,806,818	
 	 	1,403,234	
 	 	
Total Gross Assets (1)	5,609,514	
 	 	5,206,772	
 	 	
Number of shares of common stock outstanding at end of period	161,271	
 	 	167,556	
 	 	
(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	
 	9/30/2013	 	9/30/2012	 	9/30/2013	 	9/30/2012	
Revenues:	 	 	 	 	 	 	 	
Rental income	$	116,810	
 	 	$	104,948	
 	 	$	333,855	
 	 	$	312,007	
 	
Tenant reimbursements	27,418	
 	 	27,132	
 	 	77,168	
 	 	80,290	
 	
Property management fee revenue	890	
 	 	520	
 	 	2,034	
 	 	1,720	
 	
Total revenues	145,118	
 	 	132,600	
 	 	413,057	
 	 	394,017	
 	
Expenses:	 	 	 	 	 	 	 	
Property operating costs	58,767	
 	 	50,483	
 	 	164,420	
 	 	154,568	
 	
Depreciation	30,785	
 	 	27,921	
 	 	90,688	
 	 	81,721	
 	
Amortization	13,878	
 	 	15,165	
 	 	34,244	
 	 	39,095	
 	
General and administrative	5,841	
 	 	5,508	
 	 	16,678	
 	 	15,629	
 	
Total operating expenses	109,271	
 	 	99,077	
 	 	306,030	
 	 	291,013	
 	
Real estate operating income	35,847	
 	 	33,523	
 	 	107,027	
 	 	103,004	
 	
Other income (expense):	 	 	 	 	 	 	 	
Interest expense	(19,331	)	 	(16,247	)	 	(53,932	)	 	(48,727	)	
Interest and other income/(expense)	(611	)	 	383	
 	 	(1,960	)	 	765	
 	
Litigation settlement recovery/(expense)	—	
 	 	(7,500	)	 	1,250	
 	 	(7,500	)	
Net recoveries of casualty loss	3,919	
 	 	—	
 	 	6,061	
 	 	—	
 	
Equity in income of unconsolidated joint ventures	46	
 	 	323	
 	 	604	
 	 	739	
 	
Loss on consolidation	(898	)	 	—	
 	 	(898	)	 	—	
 	
Total other income (expense)	(16,875	)	 	(23,041	)	 	(48,875	)	 	(54,723	)	
Income from continuing operations	18,972	
 	 	10,482	
 	 	58,152	
 	 	48,281	
 	
Discontinued operations:	 	 	 	 	 	 	 	
Operating income	128	
 	 	607	
 	 	1,109	
 	 	2,914	
 	
Impairment loss	—	
 	 	—	
 	 	(6,402	)	 	—	
 	
Gain/(loss) on sale of real estate assets	—	
 	 	(254	)	 	16,258	
 	 	27,583	
 	
Income from discontinued operations	128	
 	 	353	
 	 	10,965	
 	 	30,497	
 	
Net income	19,100	
 	 	10,835	
 	 	69,117	
 	 	78,778	
 	
Less: Net income attributable to noncontrolling interest	(4	)	 	(4	)	 	(12	)	 	(12	)	
Net income attributable to Piedmont	$	19,096	
 	 	$	10,831	
 	 	$	69,105	
 	 	$	78,766	
 	
Weighted average common shares outstanding - diluted	164,796	
 	 	168,929	
 	 	166,734	
 	 	171,295	
 	
Per Share Information -- diluted:	 	 	 	 	 	 	 	
Income from continuing operations	$	0.12	
 	 	$	0.06	
 	 	$	0.35	
 	 	$	0.28	
 	
Income from discontinued operations	$	—	
 	 	$	—	
 	 	$	0.06	
 	 	$	0.18	
 	
Net income available to common stockholders	$	0.12	
 	 	$	0.06	
 	 	$	0.41	
 	 	$	0.46	

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
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	
 	9/30/2013	 	9/30/2012	 	9/30/2013	 	9/30/2012	
Net income attributable to Piedmont	$	19,096	
 	 	$	10,831	
 	 	$	69,105	
 	 	$	78,766	
 	
Depreciation (1) (2)	31,050	
 	 	28,763	
 	 	91,905	
 	 	84,605	
 	
Amortization (1)	13,939	
 	 	15,366	
 	 	34,509	
 	 	39,744	
 	
Impairment loss on real estate assets	—	
 	 	—	
 	 	6,402	
 	 	—	
 	
Loss on consolidation	898	
 	 	—	
 	 	898	
 	 	—	
 	
Loss/(gain) on sale of real estate assets (1)	—	
 	 	254	
 	 	(16,258	)	 	(27,583	)	
Funds from operations*	64,983	
 	 	55,214	
 	 	186,561	
 	 	175,532	
 	
Acquisition costs	60	
 	 	7	
 	 	1,374	
 	 	88	
 	
Litigation settlement expense/(recovery)	—	
 	 	7,500	
 	 	(1,250	)	 	7,500	
 	
Net recoveries of casualty loss (1)	(3,919	)	 	—	
 	 	(6,078	)	 	—	
 	
Core funds from operations*	61,124	
 	 	62,721	
 	 	180,607	
 	 	183,120	
 	
Deferred financing cost amortization	674	
 	 	663	
 	 	1,911	
 	 	2,056	
 	
Amortization of discount on Senior Notes and swap settlements	13	
 	 	—	
 	 	20	
 	 	—	
 	
Depreciation of non real estate assets	97	
 	 	196	
 	 	300	
 	 	397	
 	
Straight-line effects of lease revenue (1)	(5,076	)	 	(4,193	)	 	(14,655	)	 	(11,236	)	
Stock-based and other non-cash compensation expense	719	
 	 	869	
 	 	1,489	
 	 	1,492	
 	
Net effect of amortization of below-market in-place lease intangibles (1)	(1,757	)	 	(1,315	)	 	(4,067	)	 	(4,631	)	
Acquisition costs	(60	)	 	(7	)	 	(1,374	)	 	(88	)	
Non-incremental capital expenditures (3)	(21,705	)	 	(38,583	)	 	(59,992	)	 	(64,430	)	
Adjusted funds from operations*	$	34,029	
 	 	$	20,351	
 	 	$	104,239	
 	 	$	106,680	
 	
Weighted average common shares outstanding - diluted	164,796	
 	 	168,929	
 	 	166,734	
 	 	171,295	
 	
Funds from operations per share (diluted)	$	0.39	
 	 	$	0.33	
 	 	$	1.12	
 	 	$	1.03	
 	
Core funds from operations per share (diluted)	$	0.37	
 	 	$	0.37	
 	 	$	1.08	
 	 	$	1.07	
 	
Adjusted funds from operations per share (diluted)	$	0.21	
 	 	$	0.12	
 	 	$	0.63	
 	 	$	0.62	

(1) Includes adjustments for consolidated properties, including discontinued operations, and for our proportionate share of amounts attributable to 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. Tenant improvements, leasing commissions, building capital and deferred lease incentives incurred to lease space that was vacant at acquisition, leasing costs for spaces vacant for greater than one year, leasing costs for spaces at newly acquired properties for which in-place leases expire shortly after acquisition, improvements associated with the expansion of a building and renovations that change the underlying classification of a building are excluded 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, impairment losses, and gains or losses on consolidation, adding back depreciation and amortization on real estate assets, and after the same adjustments for unconsolidated partnerships and joint ventures. These adjustments 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 adjusting for certain non-recurring items such as gains or losses on the early extinguishment of debt, acquisition-related costs and other significant non-recurring 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 acquisition-related costs 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.	 	 	 	 	 	 	 	
Core EBITDA, Property Net Operating Income, Same Store Net Operating Income	
Unaudited (in thousands)	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	
 	Three Months Ended	 	Nine Months Ended	
 	9/30/2013	 	9/30/2012	 	9/30/2013	 	9/30/2012	
 	 	 	 	 	 	 	 	
Net income attributable to Piedmont	$	19,096	
 	 	$	10,831	
 	 	$	69,105	
 	 	$	78,766	
 	
Net income attributable to noncontrolling interest	4	
 	 	4	
 	 	12	
 	 	12	
 	
Interest expense	19,331	
 	 	16,247	
 	 	53,932	
 	 	48,727	
 	
Depreciation (1)	31,147	
 	 	28,959	
 	 	92,204	
 	 	85,002	
 	
Amortization (1)	13,939	
 	 	15,366	
 	 	34,509	
 	 	39,744	
 	
Acquisition costs	60	
 	 	7	
 	 	1,374	
 	 	88	
 	
Impairment loss	—	
 	 	—	
 	 	6,402	
 	 	—	
 	
       Litigation settlement expense/(recovery)	—	
 	 	7,500	
 	 	(1,250	)	 	7,500	
 	
Net recoveries of casualty loss(1)	(3,919	)	 	—	
 	 	(6,078	)	 	—	
 	
Loss/(gain) on sale of properties (1)	—	
 	 	254	
 	 	(16,258	)	 	(27,583	)	
Loss on consolidation	898	
 	 	—	
 	 	898	
 	 	—	
 	
Core EBITDA*	80,556	
 	 	79,168	
 	 	234,850	
 	 	232,256	
 	
General & administrative expenses(1)	5,921	
 	 	5,576	
 	 	16,940	
 	 	15,761	
 	
Management fee revenue	(890	)	 	(520	)	 	(2,034	)	 	(1,720	)	
Interest and other expense/(income)(1)	550	
 	 	(390	)	 	561	
 	 	(873	)	
Straight line rent adjustment(1)	(5,076	)	 	(4,193	)	 	(14,655	)	 	(11,236	)	
Net effect of amortization of below-market in-place lease intangibles (1)	(1,757	)	 	(1,315	)	 	(4,067	)	 	(4,631	)	
Property Net Operating Income (cash basis)*	79,304	
 	 	78,326	
 	 	231,595	
 	 	229,557	
 	
Acquisitions	(6,155	)	 	7	
 	 	(10,672	)	 	7	
 	
Dispositions	2	
 	 	(319	)	 	(49	)	 	(2,487	)	
Unconsolidated joint ventures	(376	)	 	(735	)	 	(1,717	)	 	(1,923	)	
Same Store NOI (cash basis)*	$	72,775	
 	 	$	77,279	
 	 	$	219,157	
 	 	$	225,154	
 	
Change period over period in same store NOI	(5.8	)%	 	N/A	
 	 	(2.7	)%	 	N/A	
 	
Fixed Charge Coverage Ratio (Core EBITDA/ Interest Expense) (2)	4.2	
 	 	 	 	 	 	 	
Annualized Core EBITDA (Core EBITDA x 4)	$322,224	 	 	 	 	 	 	

(1) Includes amounts attributable to consolidated properties, including discontinued operations, and our proportionate share of amounts attributable to unconsolidated joint ventures.
(2)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 removing any impairment losses, gains or losses from sales of property, or other significant non-recurring 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. 

Property Net Operating Income ("Property NOI"): Property NOI is defined as real estate operating income with the add-back of corporate general and administrative expense, depreciation and amortization, and impairment losses and the deduction of income associated with property management performed by Piedmont for other organizations. We may present this measure on an accrual basis or a cash basis. When presented on a cash basis, the effects of straight lined rents and fair value lease revenue are eliminated. The Company uses this measure to assess its operating results and believes it is important in assessing operating performance. Property 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 Net Operating Income ("Same Store NOI"): Same Store NOI is calculated as the Property 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 unconsolidated joint venture assets. We may present this measure on an accrual basis or a cash basis. When presented on a cash basis, the effects of straight lined rents and fair value lease revenue are eliminated. We believe Same Store NOI is an important measure of comparison of our properties' operating performance from one period to another. 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, 2013 

 	
 	 	 	
Corporate Headquarters	Institutional Analyst Contact	Investor Relations	
11695 Johns Creek Parkway, Suite 350	Telephone: 770.418.8592	Telephone: 866.354.3485	
Johns Creek, GA 30097	research.analysts@piedmontreit.com	investor.services@piedmontreit.com	
Telephone: 770.418.8800	 	www.piedmontreit.com	

Piedmont Office Realty Trust, Inc.
Quarterly Supplemental Information
Index

 	
 	 	 	 	 	
 	Page	 	 	Page	
 	 	 	 	 	
Introduction	 	 	Other Investments	 	
Corporate Data	3	 	Other Investments Detail	39	
Investor Information	4	 	Supporting Information	 	
Financial Highlights	5	 	Definitions	40	
Key Performance Indicators	10	 	Research Coverage	41	
Financials	 	 	Non-GAAP Reconciliations & Other Detail	42	
Balance Sheets	11	 	Property Detail	46	
Income Statements	12	 	Risks, Uncertainties and Limitations	49	
Funds From Operations / Adjusted Funds From Operations	14	 	 	 	
Same Store Analysis	15	 	 	 	
Capitalization Analysis	19	 	 	 	
Debt Summary	20	 	 	 	
Debt Detail	21	 	 	 	
Debt Analysis	22	 	 	 	
Operational & Portfolio Information - Office Investments	 	 	 	 	
Tenant Diversification	23	 	 	 	
Tenant Credit Rating & Lease Distribution Information	25	 	 	 	
Leased Percentage Information	26	 	 	 	
Rental Rate Roll Up / Roll Down Analysis	28	 	 	 	
Lease Expiration Schedule	29	 	 	 	
Quarterly Lease Expirations	30	 	 	 	
Annual Lease Expirations	31	 	 	 	
Capital Expenditures & Commitments	32	 	 	 	
Contractual Tenant Improvements & Leasing Commissions	33	 	 	 	
Geographic Diversification	34	 	 	 	
Geographic Diversification by Location Type	35	 	 	 	
Industry Diversification	36	 	 	 	
Property Investment Activity	37	 	 	 	
Value-Add Activity	38	 	 	 	

 	
 	
Notice to Readers:	
Please refer to page49 for a discussion of important risks related to the business of Piedmont Office Realty Trust, Inc., 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 statements about leasing, financial operations, leasing prospects, etc. contained in this quarterly supplemental information 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. When the Company sells properties, it restates historical income statements with the financial results of the sold assets presented in discontinued operations.	

Piedmont Office Realty Trust, Inc.
Corporate Data

Piedmont Office Realty Trust, Inc. (also referred to herein as "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 predominantly in large U.S. office markets and leased principally to high-credit-quality tenants. Approximately 82% 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. Rated as an investment-grade company by Standard & Poor’s and Moody’s, Piedmont has maintained a low-leverage strategy while acquiring its properties.

This data supplements the information provided in our reports filed with the Securities and Exchange Commission and should be reviewed in conjunction with such filings.

 	As of	 	As of	
 	September 30, 2013	 	December 31, 2012	
Number of consolidated office properties (2)	77	
 	 	74	
 	
Rentable square footage (in thousands) (2)	21,106	
 	 	20,500	
 	
Percent leased (3)	86.7	%	 	87.5	%	
Percent leased - stabilized portfolio (4)	89.5	%	 	90.5	%	
Capitalization (in thousands):	 	 	 	
Total debt - principal amount outstanding	$1,824,525	 	$1,416,525	
Equity market capitalization	$2,799,660	 	$3,024,386	
Total market capitalization	$4,624,185	 	$4,440,911	
Total debt / Total market capitalization	39.5	%	 	31.9	%	
Total debt / Total gross assets	32.5	%	 	27.2	%	
Common stock data	 	 	 	
High closing price during quarter	$18.84	 	$18.28	
Low closing price during quarter	$16.94	 	$17.22	
Closing price of common stock at period end	$17.36	 	$18.05	
Weighted average fully diluted shares outstanding (in thousands) (5)	166,734	 	170,441	
 	
Shares of common stock issued and outstanding (in thousands)	161,271	
 	 	167,556	
 	
Rating / outlook	 	 	 	
Standard & Poor's	BBB / Stable	
 	 	BBB / Stable	
 	
Moody's	Baa2 / Stable	
 	 	Baa2 / Stable	
 	
Employees	122	
 	 	116	

 	
 	 	
(1)	The definition for Annualized Lease Revenue can be found on page40.	
(2)	As of September 30, 2013, our consolidated office portfolio consisted of 77 properties (exclusive of our equity interests in two properties owned through unconsolidated joint ventures). During the first quarter of 2013, we sold 1111 Durham Avenue, a 237,000 square foot office building located in South Plainfield, NJ, and acquired Arlington Gateway, a 334,000 square foot office building located in Arlington, VA and 5 & 15 Wayside Road, a 271,000 square foot office building complex located in Burlington, MA. During the second quarter of 2013, we sold 1200 Enclave Parkway, a 150,000 square foot office building located in Houston, TX. During the third quarter of 2013, we completed the buyout of our joint venture partners' interests in three properties which had previously been unconsolidated: 5301 Maryland Way in Brentwood, TN, 2020 West 89th Street in Leawood, KS, and 4685 Investment Drive in Troy, MI. For additional detail on asset transactions during 2013, please refer to page37.	
(3)	Calculated as leased square footage plus square footage associated with executed new leases for currently vacant spaces divided by total rentable square footage, all as of the relevant date, expressed as a percentage. This measure is presented for our consolidated office properties and excludes unconsolidated joint venture properties. Please refer to page26 for additional analyses regarding Piedmont's leased percentage.	
(4)	Please refer to page38 for information regarding value-add properties, data for which is removed from stabilized portfolio totals.	
(5)	Weighted average fully diluted shares outstanding are presented on a year-to-date basis for each period.	

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 Management	
 	 	 	
Donald A. Miller, CFA	Robert E. Bowers	Laura P. Moon	
Chief Executive Officer, President	Chief Financial Officer, Executive	Chief Accounting Officer and	
and Director	Vice President, and Treasurer	Senior Vice President	
 	 	 	
Raymond L. Owens	Carroll A. Reddic, IV	Robert K. Wiberg	
Executive Vice President,	Executive Vice President,	Executive Vice President,	
Capital Markets	Real Estate Operations and Assistant	Mid-Atlantic Region and	
 	Secretary	Head of Development	
 	 	 	
Board of Directors	
 	 	 	
W. Wayne Woody	Frank C. McDowell	Donald A. Miller, CFA	
Director, Chairman of the Board of	Director, Vice Chairman of the	Chief Executive Officer, President	
Directors and Chairman of	Board of Directors and Chairman	and Director	
Governance Committee	of Compensation Committee	 	
 	 	 	
Raymond G. Milnes, Jr.	Jeffery L. Swope	Michael R. Buchanan	
Director and Chairman of	Director and Chairman of	Director	
Audit Committee	Capital Committee	 	
 	 	 	
Wesley E. Cantrell	William H. Keogler, Jr.	Donald S. Moss	
Director	Director	Director	

 	
 	 	
Transfer Agent	Corporate Counsel	
 	 	
Computershare	King & Spalding	
P.O. Box 358010	1180 Peachtree Street, NE	
Pittsburgh, PA 15252-8010	Atlanta, GA 30309	
Phone: 866.354.3485	Phone: 404.572.4600	

4

Piedmont Office Realty Trust, Inc.
Financial Highlights
As of September 30, 2013 

Financial Results (1) 

Funds from operations (FFO) for the quarter ended September 30, 2013 was $65.0 million, or $0.39 per share (diluted), compared to $55.2 million, or $0.33 per share (diluted), for the same quarter in 2012. FFO for the nine months ended September 30, 2013 was $186.6 million, or $1.12 per share (diluted), compared to $175.5 million, or $1.03 per share (diluted), for the same period in 2012. The increase in FFO for the three months and the nine months ended September 30, 2013 as compared to the same periods in 2012 was principally related to the following factors: 1) increased operating income attributable to newly acquired properties, 2) litigation settlement insurance reimbursements amounting to $1.2 million received thus far in 2013 as compared to litigation settlement expense of $7.5 million recognized in 2012, and 3) net casualty gains related to insurance reimbursements received in 2013 for damage caused by Hurricane Sandy.

Core funds from operations (Core FFO) for the quarter ended September 30, 2013 was $61.1 million, or $0.37 per share (diluted), compared to $62.7 million, or $0.37 per share (diluted), for the same quarter in 2012. Core FFO for the nine months ended September 30, 2013 was $180.6 million, or $1.08 per share (diluted), compared to $183.1 million, or $1.07 per share (diluted), for the same period in 2012. Differences in Core FFO for the three months and the nine months ended September 30, 2013 as compared to the same periods in 2012 were principally related to the deduction from FFO of the litigation settlement expense in 2012 and the insurance reimbursements in 2013 related to the litigation settlement and Hurricane Sandy expenses. These items were deducted from FFO in the calculation of Core FFO since they were items associated with specific events and are considered to be non-recurring in nature.

Adjusted funds from operations (AFFO) for the quarter ended September 30, 2013 was $34.0 million, or $0.21 per share (diluted), compared to $20.4 million, or $0.12 per share (diluted), for the same quarter in 2012. AFFO for the nine months ended September 30, 2013 was $104.2 million, or $0.63 per share (diluted), compared to $106.7 million, or $0.62 per share (diluted), for the same period in 2012. The increase in AFFO for the three months ended September 30, 2013 as compared to the same period in 2012 was primarily related to the items described above for changes in FFO and Core FFO, as well as decreased non-incremental capital expenditures in 2013; non-incremental capital expenditures were elevated in the third quarter of 2012 principally as a result of the recognition of costs associated with two significant lease transactions at Aon Center in Chicago, IL. The decrease in the dollar amount of AFFO for the nine months ended September 30, 2013 as compared to the same period in 2012 was primarily related to the items described above for changes in FFO and Core FFO; the increase in the AFFO per share results was attributable to Piedmont's share repurchase program.

Operations & Leasing

On October 29, 2012, Hurricane Sandy made landfall in the metropolitan New York City area. As previously disclosed, most of the Company's properties in the New York area were only minimally damaged from the high winds and rain. Substantially all repair work related to the storm is complete, except for some equipment replacement at 60 Broad Street, a majority of which is anticipated to be completed during the fourth quarter of 2013. Expenses incurred in relation to the damage caused by the storm, as well as insurance reimbursements, have been presented on Piedmont's income statement in a separate line entitled Net Casualty (Loss) / Recoveries. Due to the non-recurring nature of Hurricane Sandy-related expenses and insurance reimbursements, such items are excluded from the calculation of Core FFO and AFFO.

On a square footage leased basis, our total office portfolio was 86.7% leased as of September 30, 2013, as compared to 87.0% a year earlier. Please refer to page 26 for additional leased percentage information.

The weighted average remaining lease term of our portfolio was 7.3 years(2) as of September 30, 2013 as compared to 6.9 years at December 31, 2012.

 	
 	 	
(1)	FFO, Core FFO and AFFO are supplemental non-GAAP financial measures. See page40 for definitions of non-GAAP financial measures. See pages14 and42 for reconciliations of FFO, Core FFO and AFFO to Net Income.	
(2)	Remaining lease term (after taking into account leases for vacant spaces which had been executed but not commenced as of September 30, 2013) is weighted based on Annualized Lease Revenue, as defined on page40.	

5

During the three months ended September 30, 2013, the Company completed 1,517,000 square feet of total leasing. Of the total leasing activity during the quarter, we signed renewal leases for 1,029,000 square feet and new tenant leases for 488,000 square feet. During the first nine months of 2013, we completed 2,726,000 square feet of leasing for our consolidated office properties and 2,742,000 square feet of leasing inclusive of activity associated with our unconsolidated joint venture assets. The average committed capital cost for all leases signed during the nine months ended September 30, 2013 at our consolidated office properties was $3.47 per square foot per year of lease term. Average committed capital cost per square foot per year of lease term for renewal leases signed during the nine months ended September 30, 2013 was $2.38 and average committed capital cost per square foot per year of lease term for new leases signed during the same time period was $5.66 (see page 33).

During the three months ended September 30, 2013, we executed ten long-term leases greater than 20,000 square feet at our consolidated office properties. Please see information on those leases listed below.

Tenant	Property	Property Location	Square Feet
Leased	 	Expiration
Year	Lease Type	
Independence Blue Cross	1901 Market Street	Philadelphia, PA	800,695	
 	 	2033	Renewal	
Epsilon Data Management	6021 Connection Drive	Irving, TX	221,898	
 	 	2026	New	
Continental Automotive Systems	4685 Investment Drive	Troy, MI	77,054	
 	 	2023	Renewal	
Qwest Communications (also known as CenturyLink)	4250 North Fairfax Drive	Arlington, VA	62,941	
 	 	2021	Renewal / Contraction	
Union Bank	800 North Brand Boulevard	Glendale, CA	51,706	
 	 	2024	New	
Neovia Logistics	Las Colinas Corporate Center II	Irving, TX	45,583	
 	 	2023	New	
The Travelers Indemnity Company	1441 West Long Lake Road	Troy, MI	28,077	
 	 	2019	Renewal / Contraction	
Nokia	Las Colinas Corporate Center II	Irving, TX	27,300	
 	 	2021	New	
Academy Mortgage Corporation	Glenridge Highlands II	Atlanta, GA	21,846	
 	 	2017	Renewal / Expansion	
Branch Banking and Trust Company	3750 Brookside Parkway	Alpharetta, GA	21,508	
 	 	2019	New	

In July, Piedmont signed a lease restructuring amendment with Independence Blue Cross for approximately 801,000 square feet of space at 1901 Market Street in Philadelphia, PA. The lease amendment: a) restructured the rental payment schedule to remove the irregular, "sawtooth" structure of payments, b) immediately increased the rent to market-competitive levels, as well as added annual rental rate escalations, c) extended the term of the lease through 2033, and d) increased the square footage leased. In return for the benefits described above, the tenant will be provided with an improvement allowance, which it intends to use to make improvements to the building, including improvements to the lobby, building systems and facade, as well as to renovate its office space. Under the structure of the lease, the tenant is responsible for maintaining the physical structure and mechanical systems of the building at institutional ownership standards.

In August, Piedmont completed a meaningful, multi-party leasing transaction in the Dallas market. The Company leased the entire 6021 Connection Drive property, consisting of approximately 222,000 square feet, to Epsilon Data Management. The full-building lease reflects a headquarters relocation for Epsilon to Piedmont's Las Colinas property. Epsilon also occupies approximately 28,000 square feet in an adjacent Piedmont property. In order to accommodate Epsilon's expansion and headquarters relocation, Piedmont negotiated a relocation and contraction of long-time tenant, Nokia. Nokia will move its Dallas operations to Piedmont's Las Colinas Corporate Center II. As part of the transaction, Piedmont negotiated the purchase from Nokia of a land parcel adjacent to its Connection Drive properties (please see additional information below). The Dallas market is now 98.3% leased as of September 30, 2013, as compared to 93.7% leased as of June 30, 2013 (see page 47).

6

As of September 30, 2013, there was one tenant whose lease was in holdover and there were two tenants whose leases were scheduled to expire during the eighteen month period following the end of the third quarter of 2013, each of which contributed greater than 1% in net Annualized Lease Revenue (ALR) expiring over the next eighteen months. Information regarding the leasing status of the spaces associated with those tenants' leases is presented below.

Tenant	Property	Property Location	Net
Square
Footage
Expiring	Net Percentage of
Current Quarter
Annualized Lease
Revenue Expiring
(%)	Expiration (1)	Current Leasing Status	
United States of America
(National Park Service)	1201 Eye Street	Washington, D.C.	219,750	
 	1.8%	Holdover	National Park Service is in holdover status. The Company is in discussions with the National Park Service for a lease renewal.	
United States of America
(Defense Intelligence
Agency)	3100 Clarendon
Boulevard	Arlington, VA	221,084	
 	1.7%	Q4 2013	In December 2012, the Defense Intelligence Agency exercised a termination option pursuant to its lease. The lease will now expire December 31, 2013. The Company is actively marketing the space for lease.	
BP	Aon Center	Chicago, IL	67,117	
 	1.4% (2)	Q4 2013	Approximately 96% of the square footage leased by BP has been leased on a long-term basis to: Aon Corporation, Thoughtworks, Integrys Energy Group, and Federal Home Loan Bank. Three of these future tenants are current subtenants. The remaining 67,000 square feet of available space is actively being marketed for lease.	

Piedmont typically signs leases several months in advance of their anticipated lease commencement dates. Presented below is a schedule of uncommenced leases greater than 50,000 square feet and their anticipated commencement dates. Lease renewals are excluded from this schedule.

Tenant	Property	Property Location	Square Feet
Leased	Space Status	Estimated
Commencement
Date	New /
Expansion	
GE Capital	500 West Monroe Street	Chicago, IL	79,162	Vacant	Q4 2013 - Q4 2014	Expansion	
Aon Corporation	Aon Center	Chicago, IL	428,108	Not Vacant	Q4 2013	New	
Federal Home Loan Bank of Chicago	Aon Center	Chicago, IL	95,105	Not Vacant	Q4 2013	New	
Thoughtworks, Inc.	Aon Center	Chicago, IL	52,529	Not Vacant	Q4 2013	New	
TMW Systems, Inc.	Eastpoint I	Mayfield Heights, OH	57,911	Vacant	Q1 2014	New	
Union Bank	800 North Brand Boulevard	Glendale, CA	51,706	Vacant	Q1 2014	New	
Integrys Business Support, LLC	Aon Center	Chicago, IL	167,321	Not Vacant	Q2 2014	New	
Piper Jaffray & Co.	US Bancorp Center	Minneapolis, MN	123,882	Not Vacant	Q2 2014	New	
Epsilon Data Management	6021 Connection Drive	Irving, TX	221,898	Not Vacant	Q3 2014	New	
Catamaran, Inc.	Windy Point II	Schaumburg, IL	50,686	Vacant	Q2 2015	New	

 	
 	 	
(1)	The lease expiration date presented is that of the majority of the space leased to the tenant at the building.	
(2)	The Net Percentage of Annualized Lease Revenue Expiring for the BP lease includes the rent roll downs associated with the replacement leases, which total approximately 96% of the square footage currently leased by BP.	

7

Occupancy versus NOI Analysis

Piedmont has been in a period of high lease rollover since 2010. This rollover has resulted in a decrease in leased percentage, some rental rate rolldowns, and an even larger decrease in economic leased percentage due to the rental abatement concessions provided under many of the newly negotiated leases. In turn, these abatements and lower rental rates have resulted in a lower Same Store NOI than might otherwise be anticipated given the overall leased percentage and the historical relationship between leased percentage and Same Store NOI. As of September 30, 2013, our overall leased percentage was 86.7% and our economic leased percentage was 78.6%. The difference between overall leased percentage and economic leased percentage is attributable to two factors:
 	 	
1.	leases which have been contractually entered into for currently vacant space which have not commenced (amounting to approximately 462,000 square feet of leases as of September 30, 2013, or 2.2% of the office portfolio); and	
 	 	
2.	leases which have commenced but the tenants have not commenced paying full rent due to rental abatements (amounting to 1.5 million square feet of leases as of September 30, 2013, or a 5.9% impact to leased percentage on an economic basis). Please see the chart below for a listing of major contributors to this factor.	

As the executed but not commenced leases begin and the rental abatement periods expire, there will be greater Same Store NOI growth than might otherwise be expected based on changes in overall leased percentage alone during that time period.

Due to the current economic environment, many recently negotiated leases provide for rental abatement concessions to tenants. Those rental abatements typically occur at the beginning of a new lease's term. Since 2010, Piedmont has signed approximately 11.6 million square feet of leases within its consolidated office portfolio. Due to the large number of new leases in the Company's portfolio, abatements provided under those new leases have impacted the Company's current cash net operating income and AFFO. Presented below is a schedule of leases greater than 50,000 square feet that are currently under some form of rent abatement.

Tenant	Property	Property Location	Square Feet
Leased	Abatement Structure	Abatement
Expiration	
Catamaran, Inc.	Windy Point II	Schaumburg, IL	250,000	Gross Rent	Q4 2013	
Brother International Corporation	200 Bridgewater Crossing	Bridgewater, NJ	101,724	Base Rent	Q4 2013	
Continental Automotive Systems	4685 Investment Drive	Troy, MI	77,054	Base Rent	Q4 2013	
United HealthCare	Aon Center	Chicago, IL	55,059	Gross Rent	Q4 2013	
Guidance Software	1055 East Colorado Boulevard	Pasadena, CA	86,790	Base Rent	Q1 2014	
GE Capital	500 West Monroe Street	Chicago, IL	291,935	Gross Rent	Q2 2014	
General Electric Company	500 West Monroe Street	Chicago, IL	53,972	Gross Rent	Q2 2014	
DDB Needham Chicago	Aon Center	Chicago, IL	187,000	Base Rent ($4.00 PSF)	Q2 2015	

Financing and Capital Activity

As of September 30, 2013, our ratio of debt to total gross assets was 32.5%, our ratio of debt to gross real estate assets was 37.2%, and our ratio of debt to total market capitalization was 39.5%. These debt ratios are based on total principal amount outstanding for our various loans at September 30, 2013.
On September 30, 2013, Piedmont entered into a binding agreement to sell 350 Spectrum Loop, a 156,000 square foot, 100% leased property located in Colorado Springs, CO. The sale will allow Piedmont to exit a non-strategic property and the last wholly-owned property in a non-core office market, furthering one of the Company's strategic objectives of narrowing the markets within which it operates. The property has been reclassified from real estate assets held-for-sale to real estate assets held-for-use; the operating income for the asset is presented in discontinued operations. Piedmont will record a gain on the sale of the asset during the fourth quarter of 2013.
On August 1, 2013, Piedmont completed the purchase of approximately 10.6 acres of land adjacent to its Connection Drive assets in the Las Colinas submarket of Dallas, TX. Commonly referred to as Royal Lane Land, the site is well located near the intersection of Highways 114 and 161. The land is zoned for office development and will allow the Company to either accommodate the future expansion needs of its existing tenants or provide additional parking for a future tenant desiring a denser space usage at one of Piedmont's Connection Drive properties.
On August 12, 2013, Piedmont completed the buyout of its joint venture partners' equity interests in three properties: 5301 Maryland Way located in Brentwood, TN, 4685 Investment Drive located in Troy, MI, and 2020 West 89th Street located in Leawood, KS. The buildings are comprised of approximately 347,000 square feet. The total additional equity investment amounted

8

to $14.7 million, reflecting an incremental property basis of approximately $94 per square foot. The properties are now wholly owned by Piedmont and the results of operations for the properties are now presented on the same basis as Piedmont's other wholly-owned properties. The Company recorded a $0.9 million loss on consolidation attributable to the transaction; the amount of the loss reflected the difference in the fair value of the assets at the time of the buyout and the previously recorded book value of the investments in the unconsolidated joint ventures. The incremental investments in the properties will provide Piedmont with control over leasing and disposition decisions, which the Company believes will provide investors increased value through the ultimate sale of the assets.

During the third quarter of 2013, the Company repurchased approximately 5.4 million shares of common stock under its share repurchase program. Since the stock repurchase program began in December 2011, the Company has repurchased a total of 11.9 million shares at an average price of $17.16 per share, or approximately $204.0 million in aggregate (before consideration of transaction costs). As of quarter end, Board-approved capacity remaining for additional repurchases totaled approximately $96 million under the stock repurchase plan.

In 2014, three of the Company's secured debt instruments totaling $575 million will mature. During the fourth quarter of 2012, considering the historically low interest rate environment and its plans to issue unsecured bonds to replace maturing debt, Piedmont entered into a forward starting swap hedging program to partially protect the Company against rising interest rates and to lock a portion of the interest rate of the future bond issuance. Specifically, under this hedging program and through the hedge instruments, the Company will be effectively locking the treasury component of the all-in interest rate for a future ten-year tenored unsecured bond offering. As of the end of the third quarter of 2013, the Company had entered into four forward starting swaps with a blended rate of 2.19% and a notional amount of $280 million. At current swap spread levels, the Company effectively locked the treasury component for a possible 2014 bond issuance at approximately 2.04%. The Company may enter into additional forward starting swaps in advance of $575 million of secured debt maturing in early 2014.

On July 31, 2013, the Board of Directors of Piedmont declared dividends for the third quarter of 2013 in the amount of $0.20 per common share outstanding to stockholders of record as of the close of business on August 30, 2013. The dividends were paid on September 20, 2013. The Company's dividend payout percentage for the nine months ended September 30, 2013 was 55.3% of Core FFO and 95.9% of AFFO.

Subsequent Events

On October 9, 2013, Piedmont signed an approximate 401,000 square foot lease renewal with Nestle at 800 North Brand Boulevard in Glendale, CA. The 64-month lease renewal will expire in 2021 and will reduce 2015's 6.7% lease expiration percentage by approximately 2.0% to approximately 4.7%.

On October 30, 2013, the Board of Directors of Piedmont declared dividends for the fourth quarter of 2013 in the amount of $0.20 per common share outstanding to stockholders of record as of the close of business on November 29, 2013. The dividends are to be paid on December 20, 2013.

On October 30, 2013, the Board of Directors of Piedmont approved the amendment and restatement of Piedmont's stock repurchase program to authorize up to $150 million in total additional share repurchases over the next two years. Repurchases of stock under the program will be made at the Company's discretion and will depend on market conditions, other investment opportunities and any other factors that management deems relevant.

Guidance for 2013

The Company is adjusting its financial guidance for calendar year 2013 by increasing and narrowing the guidance range. This guidance is based upon management's expectations at this time. The revised financial guidance is as follows:

 	Low	 	High	
Core Funds from Operations	$240 million	 	$243 million	
Core Funds from Operations per diluted share	$1.45	 	$1.47	

These estimates reflect management’s view of current market conditions and incorporate certain economic and operational assumptions and projections. Actual results could differ from these estimates. Note that individual quarters may fluctuate on both a cash and an accrual basis due to the timing of lease commencements and expirations, repairs and maintenance, capital expenditures, capital markets activities 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.

9

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

 	
 	
This section of our supplemental report 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), and Adjusted Funds from Operations (AFFO). Definitions of these non-GAAP measures are provided on page40 and reconciliations are provided beginning on page42.	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Three Months Ended	
 	9/30/2013	 	6/30/2013	 	3/31/2013	 	12/31/2012	 	9/30/2012	
Selected Operating Data	 	 	 	 	 	 	 	 	 	
Percent leased (1)	86.7	%	 	86.4	%	 	86.0	%	 	87.5	%	 	87.0	%	
Percent leased - stabilized portfolio  (1) (2)	89.5	%	 	89.3	%	 	88.9	%	 	90.5	%	 	90.1	%	
Rental income	$116,810	 	$109,489	 	$107,556	 	$105,692	 	$104,948	
Total revenues	$145,118	 	$134,191	 	$133,748	 	$132,832	 	$132,600	
Total operating expenses	$109,271	 	$101,055	 	$95,704	 	$98,726	 	$99,077	
Real estate operating income	$35,847	 	$33,136	 	$38,044	 	$34,106	 	$33,523	
Core EBITDA	$80,556	 	$76,256	 	$78,039	 	$76,472	 	$79,168	
Core FFO	$61,124	 	$57,919	 	$61,564	 	$60,068	 	$62,721	
Core FFO per share - diluted	$0.37	 	$0.35	 	$0.37	 	$0.36	 	$0.37	
AFFO	$34,029	 	$33,621	 	$36,589	 	$31,275	 	$20,351	
AFFO per share - diluted	$0.21	 	$0.20	 	$0.22	 	$0.19	 	$0.12	
Gross dividends	$32,880	 	$33,540	 	$33,511	 	$33,549	 	$33,675	
Dividends per share	$0.200	 	$0.200	 	$0.200	 	$0.200	 	$0.200	
Selected Balance Sheet Data	 	 	 	 	 	 	 	 	 	
Total real estate assets	$3,872,952	 	$3,821,727	 	$3,850,989	 	$3,612,732	 	$3,612,550	
Total gross real estate assets	$4,905,913	 	$4,823,983	 	$4,822,454	 	$4,564,629	 	$4,550,182	
Total assets	$4,576,553	 	$4,523,302	 	$4,538,661	 	$4,254,875	 	$4,285,831	
Net debt (3)	$1,808,168	 	$1,699,633	 	$1,681,267	 	$1,403,234	 	$1,392,261	
Total liabilities	$2,055,870	 	$1,893,342	 	$1,916,041	 	$1,614,380	 	$1,620,551	
Ratios	 	 	 	 	 	 	 	 	 	
Core EBITDA margin (4)	55.3	%	 	56.4	%	 	57.6	%	 	56.2	%	 	58.5	%	
Fixed charge coverage ratio  (5)	4.2 x	
 	 	4.2 x	
 	 	4.8 x	
 	 	4.7 x	
 	 	4.9 x	
 	
Net debt to Core EBITDA (6)	5.6 x	
 	 	5.6 x	
 	 	5.2 x	
 	 	4.6 x	
 	 	4.4 x	

 	
 	 	
(1)	Please refer to page26 for additional leased percentage information.	
(2)	Please refer to page38 for additional information on value-add properties, data for which is removed from stabilized portfolio totals.	
(3)	Net debt is calculated as the total principal amount of debt outstanding minus cash and cash equivalents and escrow deposits and restricted cash. The increase in net debt is primarily attributable to two property acquisitions completed during the first quarter of 2013, as well as capital expenditures and stock repurchases, all of which were largely funded with debt.	
(4)	Core EBITDA margin is calculated as Core EBITDA divided by total revenues (including revenues associated with discontinued operations).	
(5)	The fixed charge coverage ratio is calculated as Core EBITDA divided by the sum of interest expense, principal amortization, capitalized interest and preferred dividends. The Company had no capitalized interest, principal amortization or preferred dividends during any of the periods presented. The fixed charge coverage ratios for the second quarter and the third quarter of 2013 are lower than our historical performance on this measure primarily as a result of increased interest expense related to two debt-funded property acquisitions completed during the first quarter of 2013 and the expiration of the Office of the Comptroller of the Currency lease during the first quarter of 2013 at One Independence Square in Washington, D.C.	
(6)	Core EBITDA is annualized for the purposes of this calculation. The net debt to Core EBITDA ratios for the second quarter and the third quarter of 2013 are higher than our historic performance on this measure primarily as a result of increased net debt attributable to two property acquisitions and the expiration of the Office of the Comptroller of the Currency lease at One Independence Square in Washington, D.C., both of which occurred during the first quarter of 2013. Had the lease with the Office of the Comptroller of the Currency not expired, the net debt to Core EBITDA ratios would have been 5.3 x for both periods. During the first quarter of 2013, we acquired two properties in the last month of the quarter; the borrowings to complete the acquisitions are reflected in the numerator and full quarter contributions to Core EBITDA by the properties acquired have been included on a pro forma basis in the denominator as if the properties had been owned as of the beginning of the quarter. If the actual, partial-quarter Core EBITDA contributions by the properties acquired were to be reflected, the net debt to Core EBITDA ratio would be 5.4 x.	

10

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

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	September 30, 2013	 	June 30, 2013	 	March 31, 2013	 	December 31, 2012	 	September 30, 2012	
Assets:	
 	 	 	 	 	 	 	 	 	
Real estate, at cost:	
 	 	 	 	 	 	 	 	 	
Land assets	$	675,281	
 	 	$	664,283	
 	 	$	667,753	
 	 	$	627,351	
 	 	$	625,626	
 	
Buildings and improvements	4,005,385	
 	 	3,978,753	
 	 	3,961,516	
 	 	3,768,967	
 	 	3,737,778	
 	
Buildings and improvements, accumulated depreciation	(955,480	)	 	(926,572	)	 	(897,678	)	 	(877,644	)	 	(851,820	)	
Intangible lease asset	137,614	
 	 	135,748	
 	 	138,085	
 	 	122,684	
 	 	138,716	
 	
Intangible lease asset, accumulated amortization	(70,744	)	 	(69,089	)	 	(67,333	)	 	(67,940	)	 	(79,640	)	
Construction in progress	61,162	
 	 	19,942	
 	 	29,843	
 	 	20,373	
 	 	22,808	
 	
Real estate assets held for sale, gross	26,471	
 	 	25,257	
 	 	25,257	
 	 	25,254	
 	 	25,254	
 	
Real estate assets held for sale, accumulated depreciation & amortization	(6,737	)	 	(6,595	)	 	(6,454	)	 	(6,313	)	 	(6,172	)	
Total real estate assets	3,872,952	
 	 	3,821,727	
 	 	3,850,989	
 	 	3,612,732	
 	 	3,612,550	
 	
Investment in unconsolidated joint ventures	18,668	
 	 	37,631	
 	 	37,835	
 	 	37,226	
 	 	37,369	
 	
Cash and cash equivalents	15,972	
 	 	10,500	
 	 	17,575	
 	 	12,957	
 	 	20,763	
 	
Tenant receivables, net of allowance for doubtful accounts	31,006	
 	 	28,618	
 	 	29,237	
 	 	25,038	
 	 	24,768	
 	
Straight line rent receivable	135,487	
 	 	129,625	
 	 	126,215	
 	 	121,506	
 	 	115,603	
 	
Notes receivable	—	
 	 	—	
 	 	—	
 	 	—	
 	 	19,000	
 	
Due from unconsolidated joint ventures	—	
 	 	472	
 	 	458	
 	 	463	
 	 	533	
 	
Escrow deposits and restricted cash	385	
 	 	392	
 	 	683	
 	 	334	
 	 	23,001	
 	
Prepaid expenses and other assets	17,610	
 	 	17,404	
 	 	12,724	
 	 	13,022	
 	 	13,552	
 	
Goodwill	180,097	
 	 	180,097	
 	 	180,097	
 	 	180,097	
 	 	180,097	
 	
Interest rate swap	19,192	
 	 	19,600	
 	 	1,712	
 	 	1,075	
 	 	—	
 	
Deferred financing costs, less accumulated amortization	7,990	
 	 	8,624	
 	 	5,908	
 	 	6,454	
 	 	7,022	
 	
Deferred lease costs, less accumulated amortization	275,234	
 	 	266,683	
 	 	273,330	
 	 	243,178	
 	 	230,729	
 	
Other assets held for sale	1,960	
 	 	1,929	
 	 	1,898	
 	 	793	
 	 	844	
 	
Total assets	$	4,576,553	
 	 	$	4,523,302	
 	 	$	4,538,661	
 	 	$	4,254,875	
 	 	$	4,285,831	
 	
Liabilities:	 	 	 	 	 	 	 	 	 	
Unsecured debt	$	835,650	
 	 	$	721,621	
 	 	$	712,000	
 	 	$	429,000	
 	 	$	448,500	
 	
Secured debt	987,525	
 	 	987,525	
 	 	987,525	
 	 	987,525	
 	 	987,525	
 	
Accounts payable, accrued expenses, and accrued capital expenditures	159,675	
 	 	118,076	
 	 	139,273	
 	 	127,263	
 	 	109,125	
 	
Deferred income	26,575	
 	 	18,693	
 	 	23,585	
 	 	21,552	
 	 	24,110	
 	
Intangible lease liabilities, less accumulated amortization	41,435	
 	 	43,410	
 	 	45,215	
 	 	40,805	
 	 	42,375	
 	
Interest rate swaps	5,010	
 	 	4,017	
 	 	8,443	
 	 	8,235	
 	 	8,916	
 	
Total liabilities	2,055,870	
 	 	1,893,342	
 	 	1,916,041	
 	 	1,614,380	
 	 	1,620,551	
 	
Stockholders' equity:	 	 	 	 	 	 	 	 	 	
Common stock	1,613	
 	 	1,667	
 	 	1,676	
 	 	1,676	
 	 	1,680	
 	
Additional paid in capital	3,668,424	
 	 	3,667,973	
 	 	3,667,614	
 	 	3,667,051	
 	 	3,665,870	
 	
Cumulative distributions in excess of earnings	(1,165,794	)	 	(1,057,534	)	 	(1,041,552	)	 	(1,022,681	)	 	(994,967	)	
Other comprehensive loss	14,827	
 	 	16,245	
 	 	(6,731	)	 	(7,160	)	 	(8,916	)	
Piedmont stockholders' equity	2,519,070	
 	 	2,628,351	
 	 	2,621,007	
 	 	2,638,886	
 	 	2,663,667	
 	
Non-controlling interest	1,613	
 	 	1,609	
 	 	1,613	
 	 	1,609	
 	 	1,613	
 	
Total stockholders' equity	2,520,683	
 	 	2,629,960	
 	 	2,622,620	
 	 	2,640,495	
 	 	2,665,280	
 	
Total liabilities, redeemable common stock and stockholders' equity	$	4,576,553	
 	 	$	4,523,302	
 	 	$	4,538,661	
 	 	$	4,254,875	
 	 	$	4,285,831	
 	
Common stock outstanding at end of period	161,271	
 	 	166,681	
 	 	167,555	
 	 	167,556	
 	 	168,044	

11

Piedmont Office Realty Trust, Inc.
Consolidated Statements of Income
Unaudited (in thousands except for per share data)

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	
 	 	9/30/2013	 	6/30/2013	 	3/31/2013	 	12/31/2012	 	9/30/2012	
Revenues:	 	 	 	 	 	 	 	 	 	 	
Rental income	 	$	116,810	
 	 	$	109,489	
 	 	$	107,556	
 	 	$	105,692	
 	 	$	104,948	
 	
Tenant reimbursements	 	27,418	
 	 	24,189	
 	 	25,561	
 	 	26,541	
 	 	27,132	
 	
Property management fee revenue	 	890	
 	 	513	
 	 	631	
 	 	599	
 	 	520	
 	
 	 	145,118	
 	 	134,191	
 	 	133,748	
 	 	132,832	
 	 	132,600	
 	
Expenses:	 	 	 	 	 	 	 	 	 	 	
Property operating costs	 	58,767	
 	 	52,859	
 	 	52,794	
 	 	54,122	
 	 	50,483	
 	
Depreciation	 	30,785	
 	 	30,624	
 	 	29,279	
 	 	28,963	
 	 	27,921	
 	
Amortization	 	13,878	
 	 	11,284	
 	 	9,082	
 	 	10,505	
 	 	15,165	
 	
General and administrative	 	5,841	
 	 	6,288	
 	 	4,549	
 	 	5,136	
 	 	5,508	
 	
 	 	109,271	
 	 	101,055	
 	 	95,704	
 	 	98,726	
 	 	99,077	
 	
Real estate operating income	 	35,847	
 	 	33,136	
 	 	38,044	
 	 	34,106	
 	 	33,523	
 	
Other income / (expense):	 	 	 	 	 	 	 	 	 	 	
Interest expense	 	(19,331	)	 	(18,228	)	 	(16,373	)	 	(16,296	)	 	(16,247	)	
Interest and other income / (expense)	 	(611	)	 	(72	)	 	(1,277	)	 	68	
 	 	383	
 	
Litigation settlement recovery / (expense)  (1)	 	—	
 	 	1,250	
 	 	—	
 	 	—	
 	 	(7,500	)	
Net casualty recoveries / (loss) (2)	 	3,919	
 	 	2,303	
 	 	(161	)	 	(5,170	)	 	—	
 	
Equity in income of unconsolidated joint ventures	 	46	
 	 	163	
 	 	395	
 	 	185	
 	 	323	
 	
Gain / (loss) on consolidation	 	(898	)	 	—	
 	 	—	
 	 	—	
 	 	—	
 	
 	 	(16,875	)	 	(14,584	)	 	(17,416	)	 	(21,213	)	 	(23,041	)	
Income from continuing operations	 	18,972	
 	 	18,552	
 	 	20,628	
 	 	12,893	
 	 	10,482	
 	
Discontinued operations:	 	 	 	 	 	 	 	 	 	 	
Operating income, excluding impairment loss	 	128	
 	 	552	
 	 	429	
 	 	1,555	
 	 	607	
 	
Impairment loss	 	—	
 	 	—	
 	 	(6,402	)	 	—	
 	 	—	
 	
Gain / (loss) on sale of properties	 	—	
 	 	16,258	
 	 	—	
 	 	(6	)	 	(254	)	
Income / (loss) from discontinued operations  (3)	 	128	
 	 	16,810	
 	 	(5,973	)	 	1,549	
 	 	353	
 	
Net income	 	19,100	
 	 	35,362	
 	 	14,655	
 	 	14,442	
 	 	10,835	
 	
Less: Net income attributable to noncontrolling interest	 	(4	)	 	(4	)	 	(4	)	 	(4	)	 	(4	)	
Net income attributable to Piedmont	 	$	19,096	
 	 	$	35,358	
 	 	$	14,651	
 	 	$	14,438	
 	 	$	10,831	
 	
Weighted average common shares outstanding - diluted	 	164,796	
 	 	167,714	
 	 	167,810	
 	 	167,951	
 	 	168,929	
 	
Net income per share available to common stockholders - diluted	 	$	0.12	
 	 	$	0.21	
 	 	$	0.09	
 	 	$	0.09	
 	 	$	0.06	

 	
 	 	
(1)	Costs incurred to settle two class action lawsuits filed in 2007 net of insurance recoveries received. The settlements were granted final approval by the court in April 2013.	
(2)	Expenses related to damage caused by Hurricane Sandy net of insurance recoveries received.	
(3)	Reflects operating results for 110 and 112 Hidden Lake Circle in Duncan, SC, which were sold on September 21, 2012; 1111 Durham Avenue in South Plainfield, NJ, which was sold on March 28, 2013; 1200 Enclave Parkway in Houston, TX, which was sold on May 1, 2013; and 350 Spectrum Loop in Colorado Springs, CO, which is anticipated to be sold in November 2013.	

12

Piedmont Office Realty Trust, Inc.
Consolidated Statements of Income
Unaudited (in thousands except for per share data)

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Three Months Ended	 	Nine Months Ended	
 	9/30/2013	9/30/2012	 	Change ($)	Change (%)	 	9/30/2013	9/30/2012	 	Change ($)	Change (%)	
Revenues:	 	 	 	 	 	 	 	 	 	 	 	
Rental income	$	116,810	
 	$	104,948	
 	 	$	11,862	
 	11.3	 %	 	$	333,855	
 	$	312,007	
 	 	$	21,848	
 	7.0	 %	
Tenant reimbursements	27,418	
 	27,132	
 	 	286	
 	1.1	 %	 	77,168	
 	80,290	
 	 	(3,122	)	(3.9	)%	
Property management fee revenue	890	
 	520	
 	 	370	
 	71.2	 %	 	2,034	
 	1,720	
 	 	314	
 	18.3	 %	
 	145,118	
 	132,600	
 	 	12,518	
 	9.4	 %	 	413,057	
 	394,017	
 	 	19,040	
 	4.8	 %	
Expenses:	 	 	 	 	 	 	 	 	 	 	 	
Property operating costs	58,767	
 	50,483	
 	 	(8,284	)	(16.4	)%	 	164,420	
 	154,568	
 	 	(9,852	)	(6.4	)%	
Depreciation	30,785	
 	27,921	
 	 	(2,864	)	(10.3	)%	 	90,688	
 	81,721	
 	 	(8,967	)	(11.0	)%	
Amortization	13,878	
 	15,165	
 	 	1,287	
 	8.5	 %	 	34,244	
 	39,095	
 	 	4,851	
 	12.4	 %	
General and administrative	5,841	
 	5,508	
 	 	(333	)	(6.0	)%	 	16,678	
 	15,629	
 	 	(1,049	)	(6.7	)%	
 	109,271	
 	99,077	
 	 	(10,194	)	(10.3	)%	 	306,030	
 	291,013	
 	 	(15,017	)	(5.2	)%	
Real estate operating income	35,847	
 	33,523	
 	 	2,324	
 	6.9	 %	 	107,027	
 	103,004	
 	 	4,023	
 	3.9	 %	
Other income / (expense):	 	 	 	 	 	 	 	 	 	 	 	
Interest expense	(19,331	)	(16,247	)	 	(3,084	)	(19.0	)%	 	(53,932	)	(48,727	)	 	(5,205	)	(10.7	)%	
Interest and other income / (expense)	(611	)	383	
 	 	(994	)	(259.5	)%	 	(1,960	)	765	
 	 	(2,725	)	(356.2	)%	
Litigation settlement recovery / (expense)  (1)	—	
 	(7,500	)	 	7,500	
 	100.0	 %	 	1,250	
 	(7,500	)	 	8,750	
 	116.7	 %	
Net casualty recoveries / (loss)  (2)	3,919	
 	—	
 	 	3,919	
 	—	 %	 	6,061	
 	—	
 	 	6,061	
 	—	 %	
Equity in income of unconsolidated joint ventures	46	
 	323	
 	 	(277	)	(85.8	)%	 	604	
 	739	
 	 	(135	)	(18.3	)%	
Gain / (loss) on consolidation	(898	)	—	
 	 	(898	)	—	 %	 	(898	)	—	
 	 	(898	)	—	 %	
 	(16,875	)	(23,041	)	 	6,166	
 	26.8	 %	 	(48,875	)	(54,723	)	 	5,848	
 	10.7	 %	
Income from continuing operations	18,972	
 	10,482	
 	 	8,490	
 	81.0	 %	 	58,152	
 	48,281	
 	 	9,871	
 	20.4	 %	
Discontinued operations:	 	 	 	 	 	 	 	 	 	 	 	
Operating income, excluding impairment loss	128	
 	607	
 	 	(479	)	(78.9	)%	 	1,109	
 	2,914	
 	 	(1,805	)	(61.9	)%	
Impairment loss	—	
 	—	
 	 	—	
 	—	 %	 	(6,402	)	—	
 	 	(6,402	)	—	 %	
Gain / (loss) on sale of properties	—	
 	(254	)	 	254	
 	100.0	 %	 	16,258	
 	27,583	
 	 	(11,325	)	(41.1	)%	
Income / (loss) from discontinued operations  (3)	128	
 	353	
 	 	(225	)	(63.7	)%	 	10,965	
 	30,497	
 	 	(19,532	)	(64.0	)%	
Net income	19,100	
 	10,835	
 	 	8,265	
 	76.3	 %	 	69,117	
 	78,778	
 	 	(9,661	)	(12.3	)%	
Less: Net income attributable to noncontrolling interest	(4	)	(4	)	 	—	
 	—	 %	 	(12	)	(12	)	 	—	
 	—	 %	
Net income attributable to Piedmont	$	19,096	
 	$	10,831	
 	 	$	8,265	
 	76.3	 %	 	$	69,105	
 	$	78,766	
 	 	$	(9,661	)	(12.3	)%	
Weighted average common shares outstanding - diluted	164,796	
 	168,929	
 	 	 	 	 	166,734	
 	171,295	
 	 	 	 	
Net income per share available to common stockholders - diluted	$	0.12	
 	$	0.06	
 	 	 	 	 	$	0.41	
 	$	0.46	

 	
 	 	
(1)	Costs incurred to settle two class action lawsuits filed in 2007 net of insurance recoveries received. The settlements were granted final approval by the court in April 2013.	
(2)	Expenses related to damage caused by Hurricane Sandy net of insurance recoveries received.	
(3)	Reflects operating results for Deschutes, Rhein, Rogue, Willamette, and Portland Land Parcels in Beaverton, OR, which were all sold on March 19, 2012; 26200 Enterprise Way in Lake Forest, CA, which was sold on May 31, 2012; 110 and 112 Hidden Lake Circle in Duncan, SC, which were sold on September 21, 2012; 1111 Durham Avenue in South Plainfield, NJ, which was sold on March 28, 2013; 1200 Enclave Parkway in Houston, TX, which was sold on May 1, 2013; and 350 Spectrum Loop in Colorado Springs, CO, which is anticipated to be sold in November 2013.	

13

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	
 	 	9/30/2013	 	9/30/2012	 	9/30/2013	 	9/30/2012	
 	 	 	 	 	 	 	 	 	
Net income attributable to Piedmont	 	$	19,096	
 	 	$	10,831	
 	 	$	69,105	
 	 	$	78,766	
 	
Depreciation (1) (2)	 	31,050	
 	 	28,763	
 	 	91,905	
 	 	84,605	
 	
Amortization (1)	 	13,939	
 	 	15,366	
 	 	34,509	
 	 	39,744	
 	
Impairment loss (1)	 	—	
 	 	—	
 	 	6,402	
 	 	—	
 	
Loss / (gain) on sale of properties (1)	 	—	
 	 	254	
 	 	(16,258	)	 	(27,583	)	
Loss / (gain) on consolidation	 	898	
 	 	—	
 	 	898	
 	 	—	
 	
Funds from operations	 	64,983	
 	 	55,214	
 	 	186,561	
 	 	175,532	
 	
Adjustments:	 	 	 	 	 	 	 	 	
Acquisition costs	 	60	
 	 	7	
 	 	1,374	
 	 	88	
 	
Litigation settlement expense / (recovery)	 	—	
 	 	7,500	
 	 	(1,250	)	 	7,500	
 	
Net casualty loss / (recoveries) (1)	 	(3,919	)	 	—	
 	 	(6,078	)	 	—	
 	
Core funds from operations	 	61,124	
 	 	62,721	
 	 	180,607	
 	 	183,120	
 	
Adjustments:	 	 	 	 	 	 	 	 	
Deferred financing cost amortization	 	674	
 	 	663	
 	 	1,911	
 	 	2,056	
 	
Amortization of discount on senior notes and swap settlements	 	13	
 	 	—	
 	 	20	
 	 	—	
 	
Depreciation of non real estate assets	 	97	
 	 	196	
 	 	300	
 	 	397	
 	
Straight-line effects of lease revenue (1)	 	(5,076	)	 	(4,193	)	 	(14,655	)	 	(11,236	)	
Stock-based and other non-cash compensation expense	 	719	
 	 	869	
 	 	1,489	
 	 	1,492	
 	
Amortization of lease-related intangibles (1)	 	(1,757	)	 	(1,315	)	 	(4,067	)	 	(4,631	)	
Acquisition costs	 	(60	)	 	(7	)	 	(1,374	)	 	(88	)	
Non-incremental capital expenditures (3)	 	(21,705	)	 	(38,583	)	 	(59,992	)	 	(64,430	)	
Adjusted funds from operations	 	$	34,029	
 	 	$	20,351	
 	 	$	104,239	
 	 	$	106,680	

Weighted average common shares outstanding - diluted	 	164,796	
 	 	168,929	
 	 	166,734	
 	 	171,295	

Funds from operations per share (diluted)	 	$	0.39	
 	 	$	0.33	
 	 	$	1.12	
 	 	$	1.03	
 	
Core funds from operations per share (diluted)	 	$	0.37	
 	 	$	0.37	
 	 	$	1.08	
 	 	$	1.07	
 	
Adjusted funds from operations per share (diluted)	 	$	0.21	
 	 	$	0.12	
 	 	$	0.63	
 	 	$	0.62	

 	
 	 	
(1)	Includes adjustments for consolidated properties, including discontinued operations, and for our proportionate share of amounts attributable to unconsolidated joint ventures.	
(2)	Excludes depreciation of non real estate assets.	
(3)	Non-incremental capital expenditures are defined on page40.	

14

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

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Three Months Ended	 	Nine Months Ended	
 	9/30/2013	
 	9/30/2012	 	9/30/2013	 	9/30/2012	
Net income attributable to Piedmont	$	19,096	
 	 	$	10,831	
 	 	$	69,105	
 	 	$	78,766	
 	
Net income attributable to noncontrolling interest	4	
 	 	4	
 	 	12	
 	 	12	
 	
Interest expense (1)	19,331	
 	 	16,247	
 	 	53,932	
 	 	48,727	
 	
Depreciation (1)	31,147	
 	 	28,959	
 	 	92,204	
 	 	85,002	
 	
Amortization (1)	13,939	
 	 	15,366	
 	 	34,509	
 	 	39,744	
 	
Acquisition costs	60	
 	 	7	
 	 	1,374	
 	 	88	
 	
Impairment loss (1)	—	
 	 	—	
 	 	6,402	
 	 	—	
 	
Litigation settlement expense / (recovery)	—	
 	 	7,500	
 	 	(1,250	)	 	7,500	
 	
Net casualty loss / (recoveries) (1)	(3,919	)	 	—	
 	 	(6,078	)	 	—	
 	
Loss / (gain) on sale of properties (1)	—	
 	 	254	
 	 	(16,258	)	 	(27,583	)	
Loss / (gain) on consolidation	898	
 	 	—	
 	 	898	
 	 	—	
 	
Core EBITDA	80,556	
 	 	79,168	
 	 	234,850	
 	 	232,256	
 	
General & administrative expenses (1)	5,921	
 	 	5,576	
 	 	16,940	
 	 	15,761	
 	
Management fee revenue	(890	)	 	(520	)	 	(2,034	)	 	(1,720	)	
Interest and other income (1)	550	
 	 	(390	)	 	561	
 	 	(873	)	
Straight-line effects of lease revenue (1)	(5,076	)	 	(4,193	)	 	(14,655	)	 	(11,236	)	
Net effect of amortization of above/(below) market in-place lease intangibles  (1)	(1,757	)	 	(1,315	)	 	(4,067	)	 	(4,631	)	
Property net operating income - cash basis	79,304	
 	 	78,326	
 	 	231,595	
 	 	229,557	
 	
Net operating income from:	 	 	 	 	 	 	 	
Acquisitions (2)	(6,155	)	 	7	
 	 	(10,672	)	 	7	
 	
Dispositions (3)	2	
 	 	(319	)	 	(49	)	 	(2,487	)	
Unconsolidated joint ventures	(376	)	 	(735	)	 	(1,717	)	 	(1,923	)	
Same store net operating income - cash basis	$	72,775	
 	 	$	77,279	
 	 	$	219,157	
 	 	$	225,154	
 	
Change period over period	(5.8	)%	(4) 	N/A	
 	 	(2.7	)%	(4) 	N/A	

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Same Store Net Operating Income	 	 	 	 	 	 	 	 	 	 	 	
Top Seven Markets	Three Months Ended	 	Nine Months Ended	
 	9/30/2013	 	9/30/2012	 	9/30/2013	 	9/30/2012	
 	$	%	 	$	%	 	$	%	 	$	%	
Washington, D.C. (5)	$	15,480	
 	21.3	
 	 	$	20,231	
 	26.2	
 	 	49,972	
 	22.8	
 	 	57,288	
 	25.4	
 	
New York (6)	11,491	
 	15.8	
 	 	10,921	
 	14.1	
 	 	35,936	
 	16.4	
 	 	33,859	
 	15.0	
 	
Chicago (7) (8)	9,673	
 	13.3	
 	 	13,180	
 	17.1	
 	 	27,342	
 	12.5	
 	 	36,495	
 	16.2	
 	
Minneapolis	5,548	
 	7.6	
 	 	5,439	
 	7.0	
 	 	16,421	
 	7.5	
 	 	15,710	
 	7.0	
 	
Boston (9)	4,880	
 	6.7	
 	 	4,439	
 	5.7	
 	 	14,509	
 	6.6	
 	 	12,394	
 	5.5	
 	
Dallas (10)	6,199	
 	8.5	
 	 	3,379	
 	4.4	
 	 	13,842	
 	6.3	
 	 	10,710	
 	4.8	
 	
Los Angeles (11)	3,151	
 	4.3	
 	 	3,776	
 	4.9	
 	 	9,772	
 	4.5	
 	 	10,234	
 	4.6	
 	
Other (12)	16,353	
 	22.5	
 	 	15,914	
 	20.6	
 	 	51,363	
 	23.4	
 	 	48,464	
 	21.5	
 	
Total	$	72,775	
 	100.0	
 	 	$	77,279	
 	100.0	
 	 	219,157	
 	100.0	
 	 	225,154	
 	100.0	

15

 	
 	 	
(1)	Includes amounts attributable to consolidated properties, including discontinued operations, and our proportionate share of amounts attributable to unconsolidated joint ventures.	
(2)	Acquisitions consist of Gavitello Land in Atlanta, GA, purchased on June 28, 2012; Glenridge Highlands III Land in Atlanta, GA, purchased on October 15, 2012; Arlington Gateway in Arlington, VA, purchased on March 4, 2013; 5 & 15 Wayside Road in Burlington, MA, purchased on March 22, 2013; Royal Lane Land in Irving, TX, purchased on August 1, 2013; and 5301 Maryland Way in Brentwood, TN, 4685 Investment Drive in Troy, MI, and 2020 West 89th Street in Leawood, KS, the remaining equity interests in which were purchased on August 12, 2013.	
(3)	Dispositions consist of Deschutes, Rhein, Rogue, Willamette, and Portland Land Parcels in Beaverton, OR, sold on March 19, 2012; 26200 Enterprise Way in Lake Forest, CA, sold on May 31, 2012; 110 and 112 Hidden Lake Circle in Duncan, SC, sold on September 21, 2012; 1111 Durham Avenue in South Plainfield, NJ, sold on March 28, 2013; and 1200 Enclave Parkway in Houston, TX, sold on May 1, 2013.	
(4)	The primary reasons for the negative Same Store Net Operating Income performance for the three months and the nine months ended September 30, 2013 were: A) the expiration of the Office of the Comptroller of the Currency lease at One Independence Square in Washington, D.C. on March 1, 2013, and B) successful property tax appeals amounting to a one-time favorable adjustment to operating expenses during the third quarter of 2012 of $2.7 million. Had these two events not occurred, the growth in Same Store Net Operating Income for the three months and the nine months ended September 30, 2013 would have been 3.5% and 2.4%, respectively.	
(5)	The decrease in Washington, D.C. Same Store Net Operating Income for the three months and the nine months ended September 30, 2013 as compared to the same periods in 2012 was primarily attributable to the expiration of the Office of the Comptroller of the Currency lease at One Independence Square in Washington, D.C., offset partially by increased rental revenue as a result of the expirations of the rental abatement periods for several leases at Piedmont Pointe I & II in Bethesda, MD.	
(6)	The increase in New York Same Store Net Operating Income for the three months and the nine months ended September 30, 2013 as compared to the same periods in 2012 was primarily related to the commencement of rental payments under several new leases at 200 & 400 Bridgewater Crossing in Bridgewater, NJ. The increase in New York Same Store Net Operating Income for the nine months ended September 30, 2013 was also related to one-time expense recovery adjustments at 60 Broad Street in New York, NY which are not expected to recur.	
(7)	The decrease in Chicago Same Store Net Operating Income for the three months and the nine months ended September 30, 2013 as compared to the same periods in 2012 was primarily related to gross rental abatements associated with several new leases, most notably that of GE Capital at 500 West Monroe Street in Chicago, IL, and Catamaran at Windy Point II in Schaumburg, IL.	
(8)	The percentage contribution from Chicago to our total Same Store Net Operating Income is smaller than our geographic concentration percentage in Chicago, which is presented on an ALR basis (see page34), primarily because of the large number of leases with gross rent abatements and a number of leases yet to commence for currently vacant spaces (the projected gross rent for which is included in our ALR calculation). As the gross rent abatements burn off and as executed but not commenced leases begin, the Same Store Net Operating Income percentage contribution from Chicago should increase and should be more closely aligned with our Chicago concentration percentage as presented on page34.	
(9)	The increase in Boston Same Store Net Operating Income for the three months and the nine months ended September 30, 2013 as compared to the same periods in 2012 was primarily related to the expiration of the rental abatement period for the State Street Bank lease at 1200 Crown Colony Drive in Quincy, MA.	
(10)	The increase in Dallas Same Store Net Operating Income for the three months and the nine months ended September 30, 2013 as compared to the same periods in 2012 was primarily related to termination income from Nokia at 6021 Connection Drive in Irving, TX. The entire building has been re-leased to Epsilon Data Management; please see additional details in the Financial Highlights section.	
(11)	The decrease in Los Angeles Same Store Net Operating Income for the three months ended September 30, 2013 as compared to the same period in 2012 was primarily related to the expiration of a lease and the abatement of rent under the replacement lease at 1901 Main Street in Irvine, CA.	
(12)	The increase in Other Same Store Net Operating Income for the three months ended September 30, 2013 as compared to the same period in 2012 was primarily related to the expiration of the rental abatement period associated with the new lease with US Foods at River Corporate Center in Tempe, AZ, and increased rental income under the restructured Independence Blue Cross lease at 1901 Market Street in Philadelphia, PA. The increase in Other Same Store Net Operating Income for the nine months ended September 30, 2013 as compared to the same period in 2012 was primarily related to the expirations of rental abatement periods associated with new leases with US Foods at River Corporate Center in Tempe, AZ, Grand Canyon Education at Desert Canyon 300 in Phoenix, AZ and Chrysler Group, LLC at 1075 West Entrance Drive in Auburn Hills, MI.	

16

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

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Three Months Ended	 	Nine Months Ended	
 	9/30/2013	 	9/30/2012	 	9/30/2013	 	9/30/2012	
Net income attributable to Piedmont	$	19,096	
 	 	$	10,831	
 	 	$	69,105	
 	 	$	78,766	
 	
Net income attributable to noncontrolling interest	4	
 	 	4	
 	 	12	
 	 	12	
 	
Interest expense (1)	19,331	
 	 	16,247	
 	 	53,932	
 	 	48,727	
 	
Depreciation (1)	31,147	
 	 	28,959	
 	 	92,204	
 	 	85,002	
 	
Amortization (1)	13,939	
 	 	15,366	
 	 	34,509	
 	 	39,744	
 	
Acquisition costs	60	
 	 	7	
 	 	1,374	
 	 	88	
 	
Impairment loss (1)	—	
 	 	—	
 	 	6,402	
 	 	—	
 	
Litigation settlement expense / (recovery)	—	
 	 	7,500	
 	 	(1,250	)	 	7,500	
 	
Net casualty loss / (recoveries) (1)	(3,919	)	 	—	
 	 	(6,078	)	 	—	
 	
Loss / (gain) on sale of properties (1)	—	
 	 	254	
 	 	(16,258	)	 	(27,583	)	
Loss / (gain) on consolidation	898	
 	 	—	
 	 	898	
 	 	—	
 	
Core EBITDA	80,556	
 	 	79,168	
 	 	234,850	
 	 	232,256	
 	
General & administrative expenses (1)	5,921	
 	 	5,576	
 	 	16,940	
 	 	15,761	
 	
Management fee revenue	(890	)	 	(520	)	 	(2,034	)	 	(1,720	)	
Interest and other income (1)	550	
 	 	(390	)	 	561	
 	 	(873	)	
Property net operating income - accrual basis	86,137	
 	 	83,834	
 	 	250,317	
 	 	245,424	
 	
Net operating income from:	 	 	 	 	 	 	 	
Acquisitions (2)	(7,056	)	 	7	
 	 	(12,006	)	 	7	
 	
Dispositions (3)	2	
 	 	(900	)	 	(647	)	 	(3,966	)	
Unconsolidated joint ventures	(385	)	 	(701	)	 	(1,818	)	 	(1,827	)	
Same store net operating income - accrual basis	$	78,698	
 	 	$	82,240	
 	 	$	235,846	
 	 	$	239,638	
 	
Change period over period	(4.3	)%	(4) 	N/A	
 	 	(1.6	)%	(4) 	N/A	

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Same Store Net Operating Income	 	 	 	 	 	 	 	 	 	 	 	
Top Seven Markets	Three Months Ended	 	Nine Months Ended	
 	9/30/2013	 	9/30/2012	 	9/30/2013	 	9/30/2012	
 	$	%	 	$	%	 	$	%	 	$	%	
Washington, D.C. (5)	$	15,288	
 	19.4	
 	 	$	21,126	
 	25.7	
 	 	$	50,193	
 	21.3	
 	 	$	60,789	
 	25.4	
 	
New York (6)	12,412	
 	15.8	
 	 	11,337	
 	13.8	
 	 	38,555	
 	16.3	
 	 	35,655	
 	14.9	
 	
Chicago (7) (8)	12,351	
 	15.7	
 	 	13,455	
 	16.4	
 	 	37,020	
 	15.7	
 	 	36,114	
 	15.1	
 	
Minneapolis	5,882	
 	7.5	
 	 	5,640	
 	6.9	
 	 	17,452	
 	7.4	
 	 	16,529	
 	6.9	
 	
Boston	4,883	
 	6.2	
 	 	5,224	
 	6.3	
 	 	14,790	
 	6.3	
 	 	14,804	
 	6.2	
 	
Dallas (9)	5,979	
 	7.6	
 	 	3,854	
 	4.7	
 	 	13,639	
 	5.8	
 	 	11,663	
 	4.8	
 	
Los Angeles	3,206	
 	4.1	
 	 	3,394	
 	4.1	
 	 	9,684	
 	4.1	
 	 	9,879	
 	4.1	
 	
Other (10)	18,697	
 	23.7	
 	 	18,210	
 	22.1	
 	 	54,513	
 	23.1	
 	 	54,205	
 	22.6	
 	
Total	$	78,698	
 	100.0	
 	 	$	82,240	
 	100.0	
 	 	$	235,846	
 	100.0	
 	 	$	239,638	
 	100.0	

17

 	
 	 	
(1)	Includes amounts attributable to consolidated properties, including discontinued operations, and our proportionate share of amounts attributable to unconsolidated joint ventures.	
(2)	Acquisitions consist of Gavitello Land in Atlanta, GA, purchased on June 28, 2012; Glenridge Highlands III Land in Atlanta, GA, purchased on October 15, 2012; Arlington Gateway in Arlington, VA, purchased on March 4, 2013; 5 & 15 Wayside Road in Burlington, MA, purchased on March 22, 2013; Royal Lane Land in Irving, TX, purchased on August 1, 2013; and 5301 Maryland Way in Brentwood, TN, 4685 Investment Drive in Troy, MI, and 2020 West 89th Street in Leawood, KS, the remaining equity interests in which were purchased on August 12, 2013.	
(3)	Dispositions consist of Deschutes, Rhein, Rogue, Willamette, and Portland Land Parcels in Beaverton, OR, sold on March 19, 2012; 26200 Enterprise Way in Lake Forest, CA, sold on May 31, 2012; 110 and 112 Hidden Lake Circle in Duncan, SC, sold on September 21, 2012; 1111 Durham Avenue in South Plainfield, NJ, sold on March 28, 2013; and 1200 Enclave Parkway in Houston, TX, sold on May 1, 2013.	
(4)	The primary reasons for the negative Same Store Net Operating Income performance for the three months and the nine months ended September 30, 2013 were: A) the expiration of the Office of the Comptroller of the Currency lease at One Independence Square in Washington, D.C. on March 1, 2013, and B) successful property tax appeals amounting to a one-time favorable adjustment to operating expenses during the third quarter of 2012 of $2.7 million. Had these two events not occurred, the growth in Same Store Net Operating Income for the three months and the nine months ended September 30, 2013 would have been 4.4% and 3.1%, respectively.	
(5)	The decrease in Washington, D.C. Same Store Net Operating Income for the three months and the nine months ended September 30, 2013 as compared to the same periods in 2012 was primarily attributable to the expiration of the Office of the Comptroller of the Currency lease at One Independence Square in Washington, D.C.	
(6)	The increase in New York Same Store Net Operating Income for the three months and the nine months ended September 30, 2013 as compared to the same periods in 2012 was primarily related to the commencement of several new leases at 200 Bridgewater Crossing in Bridgewater, NJ. The increase in New York Same Store Net Operating Income for the nine months ended September 30, 2013 was also related to one-time expense recovery adjustments at 60 Broad Street in New York, NY which are not expected to recur.	
(7)	The decrease in Chicago Same Store Net Operating Income for the three months ended September 30, 2013 as compared to the same period in 2012 was primarily related to lower property taxes in the third quarter of 2012 at Aon Center in Chicago, IL, and Windy Point II in Schaumburg, IL, attributable to a one-time recognition of successful property tax appeals amounting to approximately $1.5 million.	
(8)	The percentage contribution from Chicago to our total Same Store Net Operating Income is smaller than our geographic concentration percentage in Chicago, which is presented on an ALR basis (see page34), primarily because of the large number of leases with operating expense recovery abatements (which abatements are not included in straight line rent adjustments) and a number of leases yet to commence for currently vacant spaces (the projected gross rent for which is included in our ALR calculation). As operating expense recovery abatements burn off and as executed but not commenced leases begin, the Same Store Net Operating Income percentage contribution from Chicago should increase and should be more closely aligned with our Chicago concentration percentage as presented on page34.	
(9)	The increase in Dallas Same Store Net Operating Income for the three months and the nine months ended September 30, 2013 as compared to the same periods in 2012 was primarily related to termination income from Nokia at 6021 Connection Drive in Irving, TX. The entire building has been re-leased to Epsilon Data Management; please see additional details in the Financial Highlights section.	
(10)	The increase in Other Same Store Net Operating Income for the three months and the nine months ended September 30, 2013 as compared to the same periods in 2012 was primarily related to increased rental income under the restructured Independence Blue Cross lease at 1901 Market Street in Philadelphia, PA.	

18

Piedmont Office Realty Trust, Inc.
Capitalization Analysis
Unaudited (in thousands except for per share data)

 	
 	 	 	 	 	 	 	 	 	
 	 	As of	 	As of	
 	 	September 30, 2013	 	December 31, 2012	
 	 	 	 	 	
Common stock price (1)	 	$	17.36	
 	 	$	18.05	
 	
Total shares outstanding	 	161,271	
 	 	167,556	
 	
Equity market capitalization (1)	 	$	2,799,660	
 	 	$	3,024,386	
 	
Total debt - principal amount outstanding	 	$	1,824,525	
 	 	$	1,416,525	
 	
Total market capitalization (1)	 	$	4,624,185	
 	 	$	4,440,911	
 	
Total debt / Total market capitalization	 	39.5	%	 	31.9	%	
Total gross real estate assets	 	$	4,905,913	
 	 	$	4,564,629	
 	
Total debt / Total gross real estate assets (2)	 	37.2	%	 	31.0	%	
Total debt / Total gross assets (3)	 	32.5	%	 	27.2	%	

 	
 	 	
(1)	Reflects common stock closing price as of the end of the reporting period.	
(2)	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.	
(3)	Gross assets is defined as total assets with the add back of accumulated depreciation and accumulated amortization related to real estate assets.	

19

Piedmont Office Realty Trust, Inc.
Debt Summary
As of September 30, 2013 
Unaudited ($ in thousands)

Floating Rate & Fixed Rate Debt

Debt (1)	Principal Amount
Outstanding	Weighted Average Stated
Interest Rate	Weighted Average
Maturity	
 	 	 	 	 	
Floating Rate	$187,000	(2) 	1.36%	46.7 months	
 	 	 	 	 	
Fixed Rate	1,637,525	
 	 	4.34%	43.1 months	
 	 	 	 	 	
Total	$1,824,525	 	4.03%	43.5 months	

 	

Unsecured & Secured Debt

Debt (1)	Principal Amount
Outstanding	Weighted Average Stated
Interest Rate	Weighted Average
Maturity	
 	 	 	 	 	 	
Unsecured	$837,000	 	2.69%	(3) 	72.5 months	
 	 	 	 	 	 	
Secured	987,525	
 	 	5.17%	 	18.9 months	
 	 	 	 	 	 	
Total	$1,824,525	 	4.03%	 	43.5 months	

 	

Debt Maturities

Maturity Year	Secured Debt - Principal
Amount Outstanding  (1)	Unsecured Debt - Principal
Amount Outstanding (1)	 Weighted Average
Stated Interest
Rate	 Percentage of Total	
 	 	 	 	 	 	
2013	$—	$—	 	N/A	—%	
2014	575,000	—	 	4.89%	31.5%	
2015	105,000	—	 	5.29%	5.8%	
2016	167,525	300,000	 	3.71%	25.6%	
2017	140,000	187,000	(4) 	3.24%	17.9%	
2018 +	—	350,000	 	3.40%	19.2%	
 	 	 	 	 	 	
Total	$987,525	$837,000	 	4.03%	100%	

 	
 	 	
(1)	All of Piedmont's outstanding debt as of September 30, 2013 was interest-only debt.	
(2)	Amount represents the outstanding balance as of September 30, 2013, on the $500 million unsecured revolving credit facility. The $300 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 2.69% through its maturity date of November 22, 2016, assuming no credit rating change for the Company. This unsecured term loan, therefore, is reflected as fixed rate debt.	
(3)	The weighted average interest rate is a weighted average rate for amounts outstanding under our $500 million unsecured revolving credit facility, our $350 million unsecured senior notes and our $300 million unsecured term loan. As presented herein, the weighted average stated interest rate is calculated based upon the principal amounts outstanding; however, in our Form 10-Q filing for September 30, 2013, the comparable metric is calculated based upon the principal amounts outstanding net of the unamortized original issue discount for our unsecured senior notes. The difference in calculation methodology results in a different weighted average stated interest rate for unsecured debt between this document and our Form 10-Q filing.	
(4)	The initial maturity date of the $500 million unsecured revolving credit facility is August 19, 2016; however, there are two, six-month extension options available under the facility providing for a final extended maturity date of August 21, 2017. For the purposes of this schedule, we reflect the maturity date of the facility as the final extended maturity date of August 2017.	

20

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

 	
 	 	 	 	 	 	 	 	
Facility	Property	Rate (1)	Maturity	Principal Amount Outstanding as of September 30, 2013	
 	 	 	 	 	 	
Secured	 	 	 	 	 	
$200.0 Million Fixed-Rate Loan	Aon Center	4.87	%	 	5/1/2014	$200,000	
$25.0 Million Fixed-Rate Loan	Aon Center	5.70	%	 	5/1/2014	25,000	
$350.0 Million 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	
$140.0 Million WDC Fixed-Rate Loans	1201 & 1225 Eye Street	5.76	%	 	11/1/2017	140,000	
Subtotal / Weighted Average (4)	 	5.17	%	 	
 	$987,525	
 	 	 	 	 	 	
Unsecured	 	 	 	 	 	
$500.0 Million Unsecured Facility (5)	N/A	1.36	%	(6) 	8/21/2017	$187,000	
$350.0 Million Unsecured Senior Notes (7)	N/A	3.40	%	 	6/1/2023	350,000	
$300.0 Million Unsecured Term Loan	N/A	2.69	%	(8) 	11/22/2016	300,000	
Subtotal / Weighted Average (4)	 	2.69	%	 	 	$837,000	
 	 	 	 	 	 	
Total Debt - Principal Amount Outstanding / Weighted Average Stated Rate (4)	4.03	%	 	 	$1,824,525	
GAAP Accounting Adjustments (9)	 	 	 	 	(1,350	)	
Total Debt - GAAP Amount Outstanding / Weighted Average Effective Rate (10)	4.04	%	 	 	$1,823,175	

 	
 	 	
(1)	All of Piedmont’s outstanding debt as of September 30, 2013, was 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, 200 and 400 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, 2013.	
(5)	All of Piedmont’s outstanding debt as of September 30, 2013, was term debt with the exception of $187 million outstanding on our unsecured revolving credit facility. The $500 million unsecured revolving credit facility has an initial maturity date of August 19, 2016; however, there are two, six-month extension options available under the facility providing for a total extension of up to one year to August 21, 2017. The final extended maturity date is presented on this schedule.	
(6)	The interest rate presented for the $500 million unsecured revolving credit facility is the weighted average interest rate for all outstanding draws as of September 30, 2013. Piedmont may select from multiple interest rate options with each draw under this facility, including the prime rate and various length LIBOR locks. All LIBOR selections are subject to an additional spread (1.175% as of September 30, 2013) over the selected rate based on Piedmont’s current credit rating.	
(7)	The $350 million unsecured senior notes were offered for sale at 99.601% of the principal amount. The resulting effective cost of the financing is approximately 3.45% before the consideration of transaction costs.	
(8)	The $300 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 2.69% through its maturity date of November 22, 2016, assuming no credit rating change for the Company.	
(9)	The GAAP accounting adjustments relate to the original issue discount for the $350 million unsecured senior notes. The discount will be amortized to interest expense over the contractual term of the debt.	
(10)	Weighted average effective rate reflects the higher effective rate under the $350 million unsecured senior notes as a result of the issuance of the notes at a discount, partially offset by the benefit received from the settlements of the forward starting interest rate swaps.	

21

Piedmont Office Realty Trust, Inc.
Debt Analysis
As of September 30, 2013 
Unaudited

 	
 	 	 	
Bank Debt Covenant Compliance (1)	Required	Actual	

 	
 	
Maximum Leverage Ratio	0.60	0.33	
Minimum Fixed Charge Coverage Ratio (2)	1.50	4.15	
Maximum Secured Indebtedness Ratio	0.40	0.18	
Minimum Unencumbered Leverage Ratio	1.60	3.90	
Minimum Unencumbered Interest Coverage Ratio  (3)	1.75	9.78	

 	
 	 	 	
Bond Covenant Compliance (4)	Required	Actual	
 	 	 	
Total Debt to Total Assets	60% or less	37.0%	
Secured Debt to Total Assets	40% or less	20.1%	
Ratio of Consolidated EBITDA to Interest Expense	1.50 or greater	4.56	
Unencumbered Assets to Unsecured Debt	150% or greater	432%	

 	

 	Three Months Ended	Nine Months Ended	Year Ended	
Other Debt Coverage Ratios	September 30, 2013	September 30, 2013	December 31, 2012	

Net debt to core EBITDA	5.6 x	5.8 x	4.5 x	
Fixed charge coverage ratio (5)	4.2 x	4.3 x	4.7 x	
Interest coverage ratio (6)	4.2 x	 4.3 x	4.7 x	

 	
 	 	
(1)	Debt covenant compliance calculations relate to specific calculations detailed in the relevant 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. This definition of fixed charge coverage ratio as prescribed by our credit agreements is different from the fixed charge coverage ratio definition employed elsewhere within this report.	
(3)	Defined as net operating income for the trailing four quarters for unencumbered assets (including the Company's share of net operating income from partially-owned entities and subsidiaries that are deemed to be 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)	Please refer to the Indenture dated May 9, 2013, for additional information on the relevant calculations.	
(5)	Fixed charge coverage is calculated as Core EBITDA divided by the sum of interest expense, principal amortization, capitalized interest and preferred dividends. The Company had no capitalized interest, principal amortization or preferred dividends during the periods ended September 30, 2013 and December 31, 2012.	
(6)	Interest coverage ratio is calculated as Core EBITDA divided by the sum of interest expense and capitalized interest. The Company had no capitalized interest during the periods ended September 30, 2013 and December 31, 2012.	

22

Piedmont Office Realty Trust, Inc.
Tenant Diversification (1) 
As of September 30, 2013 
(in thousands except for number of properties)

 	
 	 	 	 	 	 	 	 	 	
Tenant	Credit Rating (2)	Number of
Properties	Lease Expiration  (3)	Annualized Lease
Revenue	Percentage of
Annualized Lease
Revenue (%)	 Leased
Square Footage	Percentage of
Leased
Square Footage (%)	
U.S. Government	AA+ / Aaa	8	 	(4)	$54,121	9.6	1,234	6.7	
BP (5)	A / A2	1	2013	
 	32,464	5.7	776	4.2	
US Bancorp	A+ / A1	3	2014 / 2023 / 2024	(6)	28,397	5.0	973	5.3	
State of New York	AA / Aa2	1	2019	
 	20,574	3.6	481	2.6	
Independence Blue Cross	No rating available	1	2033	
 	17,526	3.1	801	4.4	
GE	AA+ / Aa3	2	2027	
 	15,070	2.7	453	2.5	
Nestle	AA / Aa2	1	2015	
 	15,007	2.7	392	2.1	
Shaw	BBB+	1	2018	
 	10,014	1.8	313	1.7	
City of New York	AA / Aa2	1	2020	
 	9,776	1.7	313	1.7	
Nokia	B+ / B1	3	2013 / 2020 / 2021	(7)	9,008	1.6	353	1.9	
Lockheed Martin	A- / Baa1	3	2014 / 2019 / 2020	(8)	9,008	1.6	283	1.6	
KPMG	No rating available	2	2027	
 	8,958	1.6	279	1.5	
Gallagher	No rating available	1	2018	
 	8,167	1.4	307	1.7	
DDB Needham	BBB+ / Baa1	1	2018	
 	7,629	1.3	213	1.2	
Caterpillar Financial	A / A2	1	2022	
 	7,461	1.3	312	1.7	
Gemini	A / A2	1	2021	
 	7,349	1.3	205	1.1	
Harvard University	AAA / Aaa	2	2017	
 	6,730	1.2	105	0.6	
KeyBank	A- / A3	2	2016	
 	6,433	1.1	210	1.2	
Harcourt	BBB+	1	2016	
 	6,406	1.1	195	1.1	
Edelman	No rating available	1	2024	
 	6,362	1.1	184	1.0	
Raytheon	A- / A3	2	2019	
 	6,290	1.1	440	2.4	
Catamaran	BB / Ba2	1	2025	
 	5,975	1.1	301	1.6	
Jones Lang LaSalle	BBB- / Baa2	1	2017	
 	5,936	1.1	165	0.9	
First Data Corporation	B / B3	1	2020	
 	5,894	1.0	195	1.1	
Archon Group	A- / A3	2	2018	
 	5,687	1.0	235	1.3	

 	
 	Various	
 	250,429	44.2	8,590	46.9	

 	

 	

 	
 	
Total	

 	 	$566,671	100.0	18,308	100.0	

23

Tenant Diversification
September 30, 2013 as compared to December 31, 2012 

    

 	
 	 	
(1)	This schedule presents all tenants contributing 1.0% or more to Annualized Lease Revenue.	
(2)	Credit rating may reflect the credit rating of the parent or a guarantor. When available, both the Standard & Poor's credit rating and the Moody's credit rating are provided.	
(3)	Unless otherwise indicated, Lease Expiration represents the expiration year of the majority of the square footage leased by the tenant.	
(4)	There are several leases with several different agencies of the U.S. Government with expiration years ranging from 2013 to 2027.	
(5)	The majority of the space is subleased to Aon Corporation. Approximately 96% of the space currently leased by BP has been re-leased under long-term leases for the period following the BP lease expiration.	
(6)	US Bank's lease at One & Two Meridian Crossings, representing approximately 337,000 square feet and $9.3 million of Annualized Lease Revenue, expires in 2023. Of the space leased at US Bancorp Center, US Bancorp renewed on 395,000 square feet, representing $11.0 million of Annualized Lease Revenue, through 2024 and Piper Jaffray, a current subtenant, leased 124,000 square feet, representing $3.7 million of Annualized Lease Revenue, through 2025. Approximately 120,000 square feet and $4.3 million of Annualized Lease Revenue will expire in 2014.	
(7)	There are three leases with Nokia. Nokia's lease at: A) 6021 Connection Drive, representing $4.5 million of Annualized Lease Revenue and 196,000 square feet, expires in 2013, B) 5 & 15 Wayside Road, representing $3.8 million and 129,000 square feet, expires in 2020, and C) Las Colinas Corporate Center II, representing $0.6 million and 27,000 square feet, expires in 2021.	
(8)	There are three leases with Lockheed Martin. Lockheed Martin's lease at: A) 9221 Corporate Boulevard, representing $3.4 million of Annualized Lease Revenue and 115,000 square feet, expires in 2019, B) 9211 Corporate Boulevard, representing $3.3 million of Annualized Lease Revenue and 115,000 square feet, expires in 2014, and C) 400 Virginia Avenue, representing $2.3 million of Annualized Lease Revenue and 52,000 square feet, expires in 2020.	

24

Piedmont Office Realty Trust, Inc.
Tenant Credit Rating & Lease Distribution Information
As of September 30, 2013 

Tenant Credit Rating (1) 

 	 	 	 	
 	Annualized
Lease Revenue
(in thousands)	Percentage of
Annualized Lease
Revenue (%)	 	
 	 	 	 	
AAA / Aaa	$60,873	10.7	 	
AA / Aa	80,802	
 	14.3	 	
A / A	138,615	
 	24.5	 	
BBB / Baa	57,512	
 	10.1	 	
BB / Ba	19,747	
 	3.5	 	
B / B	31,760	
 	5.6	 	
Below	—	
 	0.0	 	
Not rated (2)	177,362	
 	31.3	 	
Total	$566,671	100.0	 	

Lease Distribution

 	Number of Leases	Percentage of
Leases (%)	 Annualized
Lease Revenue
(in thousands)	 Percentage of
Annualized Lease
Revenue (%)	 Leased
Square Footage
(in thousands)	Percentage of
Leased
Square Footage (%)	 	
 	 	 	 	 	 	 	 	
2,500 or Less	203	34.1	$21,082	3.7	174	
 	1.0	 	
2,501 - 10,000	162	27.2	29,073	
 	5.1	887	
 	4.8	 	
10,001 - 20,000	67	11.2	29,068	
 	5.1	971	
 	5.3	 	
20,001 - 40,000	67	11.2	59,019	
 	10.4	1,927	
 	10.5	 	
40,001 - 100,000	45	7.6	78,020	
 	13.8	2,593	
 	14.2	 	
Greater than 100,000	52	8.7	350,409	
 	61.9	11,756	
 	64.2	 	
Total	596	100.0	$566,671	100.0	18,308	
 	100.0	 	

 	
 	 	
(1)	Credit rating may reflect the credit rating of the parent or a guarantor. Where differences exist between the Standard & Poor's credit rating for a tenant and the Moody's credit rating for a tenant, the higher credit rating is selected for this analysis.	
(2)	The classification of a tenant as "not rated" does not indicate that the tenant is of poor credit quality, but can indicate that the tenant or the tenant's debt, if any, has not been rated. Included in this category are such tenants as Independence Blue Cross, McKinsey & Company and KPMG.	

25

Piedmont Office Realty Trust, Inc.
Leased Percentage Information
(in thousands)

Impact of Strategic Transactions on Leased Percentage

The Company’s stated long-term growth strategy includes the recycling of capital from certain stabilized or non-core assets into office properties located in focused concentration and opportunistic markets. Some of the recently acquired properties are value-add properties which are defined as low-occupancy properties acquired at attractive bases with earnings growth and value appreciation potential achievable through leasing up such assets to a stabilized occupancy. Because the value-add properties have large vacancies, they negatively affect Piedmont’s overall leased percentage. In order to identify the effect they have on Piedmont’s overall leased percentage, the following information is being provided. The analysis below: 1) removes the impact of the value-add properties from Piedmont’s overall office portfolio total under the heading “Stabilized Portfolio Analysis”; 2) provides a year-over-year comparison of leased percentage on the same subset of properties under the heading “Same Store Analysis”; and 3) provides a year-over-year comparison of leased percentage on the same subset of stabilized properties under the heading "Same Store Stabilized Analysis".

 	 	Three Months Ended	 	Three Months Ended	 	
 	 	September 30, 2013	 	September 30, 2012	 	
 	 	 Leased
Square Footage	 Rentable
Square Footage	Percent
Leased (1)	 	 Leased
Square Footage	 Rentable
Square Footage	Percent
Leased (1)	 	
 	As of June 30, 20xx	17,878	
 	20,704	
 	86.4	%	 	17,418	
 	20,482	
 	85.0	%	 	
 	New leases	1,342	

 	 	806	

 	 	
 	Expired leases	(1,248	)	
 	
 	 	(400	)	

 	Other	—	
 	56	
 	
 	 	6	
 	6	

 	Subtotal	17,972	
 	20,760	
 	86.6	%	 	17,830	
 	20,488	
 	87.0	%	 	
 	Acquisitions during period	336	
 	346	
 	
 	 	—	
 	—	

 	Dispositions during period	—	
 	—	
 	
 	 	—	
 	—	

 	As of September 30, 20xx (2) (3)	18,308	
 	21,106	
 	86.7	%	 	17,830	
 	20,488	
 	87.0	%	 	

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Nine Months Ended	 	Nine Months Ended	 	
 	 	September 30, 2013	 	September 30, 2012	 	
 	 	 Leased
Square Footage	 Rentable
Square Footage	Percent
Leased (1)	 	 Leased
Square Footage	 Rentable
Square Footage	Percent
Leased (1)	 	
 	As of December 31, 20xx	17,935	
 	20,500	
 	87.5	%	 	18,124	
 	20,942	
 	86.5	%	 	
 	New leases	2,526	

 	 	1,790	

 	 	
 	Expired leases	(2,775	)	
 	
 	 	(1,623	)	

 	Other	3	
 	53	
 	
 	 	9	
 	16	

 	Subtotal	17,689	
 	20,553	
 	86.1	%	 	18,300	
 	20,958	
 	87.3	%	 	
 	Acquisitions during period	914	
 	940	
 	
 	 	—	
 	—	

 	Dispositions during period	(295	)	(387	)	
 	 	(470	)	(470	)	
 	 	
 	As of September 30, 20xx (2) (3)	18,308	
 	21,106	
 	86.7	%	 	17,830	
 	20,488	
 	87.0	%	 	

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Stabilized Portfolio Analysis	 	 	 	 	 	 	 	 	
 	Less value-add properties (4)	(877	)	(1,637	)	53.6	%	 	(665	)	(1,433	)	46.4	%	 	
 	Stabilized Total (2) (3)	17,431	
 	19,469	
 	89.5	%	 	17,165	
 	19,055	
 	90.1	%	 	

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Same Store Analysis	 	 	 	 	 	 	 	 	
 	Less acquisitions / dispositions after September 30, 2012  (4) (5)	(865	)	(940	)	92.0	%	 	(293	)	(387	)	75.7	%	 	
 	Same Store Total (2) (3) (6)	17,443	
 	20,166	
 	86.5	%	 	17,537	
 	20,101	
 	87.2	%	 	
 	 	 	 	 	 	 	 	 	 	
 	Same Store Stabilized Analysis	 	 	 	 	 	 	 	 	
 	Less value-add same store properties (4)	(676	)	(1,436	)	47.1	%	 	(665	)	(1,433	)	46.4	%	 	
 	Same Store Stabilized Total (2) (3)	16,767	
 	18,730	
 	89.5	%	 	16,872	
 	18,668	
 	90.4	%	 	

26

 	
 	 	
(1)	Calculated as leased square footage as of period end with the addition of square footage associated with uncommenced leases for spaces vacant as of period end, divided by total rentable square footage as of period end, 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)	End of period leased square footage for 2012 and 2013 includes short-term space leased on behalf of NASA in accordance with requirements stipulated under its lease to allow it to restructure its space at Two Independence Square in Washington, D.C. As of September 30, 2013, the total short-term space amounts to approximately 63,000 square feet and it will be occupied until an estimated date of July 31, 2014.	
(4)	For additional information on acquisitions and dispositions completed during the last year and value-add properties, please refer to pages37 and38, respectively.	
(5)	Dispositions completed during the previous twelve months are deducted from the previous period data and acquisitions completed during the previous twelve months are deducted from the current period data.	
(6)	Excluding executed but not commenced leases for currently vacant spaces, comprising approximately 462,000 square feet for the current period and 706,000 square feet for the prior period, Piedmont's same store commenced leased percentage was 84.2% and 83.7% for the current and prior periods, respectively.	

27

Piedmont Office Realty Trust, Inc.
Rental Rate Roll Up / Roll Down Analysis (1) 
(in thousands)

 	
 	 	 	 	 	 	 	
 	Three Months Ended	 	
 	September 30, 2013	 	
 	Square Feet	% of Total Signed
During Period	% of Rentable
Square Footage	% Change
Cash Rents (2)	% Change
Accrual Rents   (3) (4)	 	
 	 	 	 	 	 	 	
Leases executed for spaces vacant one year or less	1,309	86.3%	6.2%	2.9%	17.3%	 	
Leases executed for spaces excluded from analysis  (5)	208	13.7%	

 	 	

 	

 	Nine Months Ended	 	
 	September 30, 2013	 	
 	Square Feet	% of Total Signed
During Period	% of Rentable
Square Footage	% Change
Cash Rents (2)	% Change
Accrual Rents   (3) (4)	 	
 	 	 	 	 	 	 	
Leases executed for spaces vacant one year or less	2,118	77.7%	10.0%	(3.3)%	8.4%	 	
Leases executed for spaces excluded from analysis  (5)	608	22.3%	

 	 	

 	
 	 	
(1)	The population analyzed consists of consolidated office leases executed during the period with lease terms greater than one year. Retail leases, as well as leases associated with storage spaces, management offices, and unconsolidated joint venture assets, were excluded from this analysis.	
(2)	For the purposes of this analysis, the cash rents last in effect for the previous leases were compared to the initial cash rents of the new leases in order to calculate the percentage change.	
(3)	For the purposes of this analysis, the accrual basis rents for the previous leases were compared to the accrual basis rents of the new leases in order to calculate the percentage change. For newly signed leases which have variations in accrual basis rents, whether because of known future expansions, contractions, lease expense recovery structure changes, or other similar reasons, the weighted average of such accrual basis rents is used for the purposes of 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, unless the Company is notified otherwise by the tenant. 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 spaces for which the new leases were signed had been vacant for greater than one year.	

28

Piedmont Office Realty Trust, Inc.
Lease Expiration Schedule
As of September 30, 2013 
(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 (%)	Percentage of Current
Year Total Annualized
Lease Revenue
Expiring (%)	
Vacant	 	$—	—	2,798	13.3	 	$—	—	N/A	
2013 (2)	 	36,853	6.5	699	3.3	 	19,818	3.5	53.8	
2014	 	28,373	5.0	772	3.7	 	3,596	0.7	12.7	
2015	 	37,811	6.7	1,184	5.6	 	177	—	0.5	
2016	 	31,359	5.5	1,113	5.3	 	1,448	0.3	4.6	
2017	 	54,662	9.6	1,366	6.5	 	1,808	0.3	3.3	
2018	 	52,617	9.3	1,841	8.7	 	—	—	—	
2019	 	58,198	10.3	2,173	10.3	 	20,574	3.6	35.4	
2020	 	35,223	6.2	1,282	6.1	 	9,776	1.7	27.8	
2021	 	19,440	3.5	639	3.0	 	—	—	—	
2022	 	23,481	4.2	785	3.7	 	—	—	—	
2023	 	24,888	4.4	939	4.4	 	—	—	—	
2024	 	47,199	8.3	1,710	8.1	 	—	—	—	
2025	 	14,969	2.6	638	3.0	 	—	—	—	
2026	 	12,140	2.1	496	2.4	 	—	—	—	
Thereafter	 	89,458	15.8	2,671	12.6	 	27,626	4.9	30.9	
Total / Weighted Average	 	$566,671	100.0	21,106	100.0	 	$84,823	15.0	 	

 	
 	 	
Average Lease Term Remaining	
9/30/2013	7.3 years	
12/31/2012	6.9 years	

 	
 	 	
(1)	Annualized rental income associated with newly executed leases for currently occupied space is incorporated herein only at the expiration date for the current lease. Annualized rental income associated with such new leases is removed from the expiry year of the current lease and added to the expiry year of the new lease. These adjustments effectively incorporate known roll ups and roll downs into the expiration schedule.	
(2)	Leases and other revenue-producing agreements on a month-to-month basis, aggregating 6,328 square feet and Annualized Lease Revenue of $1,002,555, are assigned a lease expiration date of a year and a day beyond the period end date. Includes leases with an expiration date of September 30, 2013 aggregating 3,476 square feet and Annualized Lease Revenue of $176,742, as well as the National Park Service lease, which is comprised of 219,750 square feet and $10.4 million in Annualized Lease Revenue, or 1.8% of the Company's total Annualized Lease Revenue.	

29

Piedmont Office Realty Trust, Inc.
Lease Expirations by Quarter
As of September 30, 2013 
(in thousands)

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Q4 2013 (1)	 	Q1 2014	 	Q2 2014	 	Q3 2014	
 	 	Expiring
Square
Footage	Expiring Lease
Revenue (2)	 	Expiring
Square
Footage	Expiring Lease
Revenue (2)	 	Expiring
Square
Footage	Expiring Lease
Revenue (2)	 	Expiring
Square
Footage	Expiring Lease
Revenue (2)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Atlanta	 	—	$—	 	12	$260	 	—	$57	 	—	$—	
Austin	 	—	—	 	—	—	 	—	—	 	—	—	
Boston	 	—	—	 	—	—	 	—	—	 	—	—	
Central & South Florida	 	8	228	 	—	—	 	—	—	 	—	—	
Chicago	 	68	2,408	 	—	3	 	26	732	 	—	—	
Dallas	 	—	1	 	—	2	 	11	302	 	2	4	
Detroit	 	—	—	 	1	3	 	2	24	 	4	110	
Houston	 	—	—	 	—	—	 	—	—	 	—	—	
Los Angeles	 	3	150	 	—	—	 	—	840	 	—	—	
Minneapolis	 	3	172	 	—	1	 	122	4,260	 	—	11	
Nashville	 	—	—	 	—	—	 	—	—	 	—	—	
New York	 	27	1,397	 	37	1,217	 	21	1,018	 	—	26	
Philadelphia	 	—	—	 	—	—	 	—	—	 	—	—	
Phoenix	 	—	—	 	—	—	 	—	—	 	—	—	
Washington, D.C. (3)	 	584	25,941	 	156	5,745	 	58	3,457	 	193	4,428	
Other	 	6	118	 	8	150	 	3	41	 	—	—	
Total / Weighted Average  (4)	 	699	$30,415	 	214	$7,381	 	243	$10,731	 	199	$4,579	

 	
 	 	
(1)	Includes leases with an expiration date of September 30, 2013 aggregating 3,476 square feet and expiring lease revenue of $113,768. No such adjustments are made to other periods presented.	
(2)	Expiring lease revenue is calculated as expiring square footage multiplied by the gross rent per square foot of the tenant currently leasing the space.	
(3)	Approximately 220,000 square feet and $10.4 million of expiring lease revenue in the fourth quarter of 2013 is related to the lease with the National Park Service, which is currently in holdover status.	
(4)	Total expiring lease revenue in any given year will not tie to the expiring Annualized Lease Revenue presented on the Lease Expiration Schedule on the previous page as the Lease Expiration Schedule accounts for the revenue effects of newly signed leases. Reflected herein are expiring revenues based on in-place rental rates.	

30

Piedmont Office Realty Trust, Inc.
Lease Expirations by Year
As of September 30, 2013 
(in thousands)

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	12/31/2013 (1)	 	12/31/2014	 	12/31/2015	 	12/31/2016	 	12/31/2017	
 	Expiring
Square
Footage	Expiring
Lease
Revenue (2)	 	Expiring
Square
Footage	Expiring
Lease
Revenue (2)	 	Expiring
Square
Footage	Expiring
Lease
Revenue (2)	 	Expiring
Square
Footage	Expiring
Lease
Revenue (2)	 	Expiring
Square
Footage	Expiring
Lease
Revenue (2)	
Atlanta	—	$—	 	14	$376	 	29	$535	 	18	$362	 	37	$907	
Austin	—	—	 	—	—	 	—	—	 	196	6,412	 	—	—	
Boston	—	—	 	—	48	 	128	2,650	 	3	190	 	106	6,023	
Central & South Florida	8	228	 	—	3	 	30	708	 	71	1,804	 	141	3,406	
Chicago	68	2,408	 	40	1,882	 	188	5,308	 	79	2,440	 	296	15,898	
Dallas	—	1	 	13	309	 	26	629	 	20	485	 	198	4,830	
Detroit	—	—	 	8	167	 	61	392	 	31	711	 	78	1,529	
Houston	—	—	 	—	—	 	—	—	 	—	—	 	—	2	
Los Angeles	3	150	 	5	1,062	 	435	16,415	 	92	2,802	 	43	1,526	
Minneapolis	3	172	 	153	5,125	 	107	3,888	 	33	1,070	 	41	1,315	
Nashville	—	—	 	—	—	 	—	—	 	202	2,579	 	—	—	
New York	27	1,397	 	96	4,123	 	68	2,499	 	282	9,084	 	69	2,193	
Philadelphia	—	—	 	—	—	 	—	—	 	—	—	 	—	—	
Phoenix	—	—	 	—	—	 	—	—	 	—	—	 	—	—	
Washington, D.C. (3)	584	25,941	 	433	15,028	 	102	4,569	 	73	3,124	 	343	16,804	
Other	6	118	 	10	191	 	10	208	 	13	296	 	14	333	
Total / Weighted Average  (4)	699	$30,415	 	772	$28,314	 	1,184	$37,801	 	1,113	$31,359	 	1,366	$54,766	

 	
 	 	
(1)	Includes leases with an expiration date of September 30, 2013 aggregating 3,476 square feet and expiring lease revenue of $113,768. No such adjustments are made to other periods presented.	
(2)	Expiring lease revenue is calculated as expiring square footage multiplied by the gross rent per square foot of the tenant currently leasing the space.	
(3)	Approximately 220,000 square feet and $10.4 million of expiring lease revenue in 2013 is related to the lease with the National Park Service, which is currently in holdover status.	
(4)	Total expiring lease revenue in any given year will not tie to the expiring Annualized Lease Revenue presented on the Lease Expiration Schedule on page29 as the Lease Expiration Schedule accounts for the revenue effects of newly signed leases. Reflected herein are expiring revenues based on in-place rental rates.	

31

Piedmont Office Realty Trust, Inc.
Capital Expenditures & Commitments
For the quarter ended September 30, 2013 
Unaudited (in thousands)

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	For the Three Months Ended	
 	9/30/2013	 	6/30/2013	 	3/31/2013	 	12/31/2012	 	9/30/2012	
Non-incremental	 	 	 	 	 	 	 	 	 	
Building / construction / development	$	1,465	
 	 	$	2,056	
 	 	$	930	
 	 	$	1,994	
 	 	$	5,257	
 	
Tenant improvements	11,854	
 	 	11,292	
 	 	13,744	
 	 	20,944	
 	 	17,347	
 	
Leasing costs	8,386	
 	 	5,019	
 	 	5,246	
 	 	289	
 	 	15,979	
 	
Total non-incremental	21,705	
 	 	18,367	
 	 	19,920	
 	 	23,227	
 	 	38,583	
 	
Incremental	 	 	 	 	 	 	 	 	 	
Building / construction / development	4,826	
 	 	8,291	
 	 	6,712	
 	 	5,680	
 	 	7,338	
 	
Tenant improvements	9,780	
 	 	29,262	
 	 	14,068	
 	 	5,731	
 	 	5,904	
 	
Leasing costs	2,043	
 	 	1,119	
 	 	1,642	
 	 	3,315	
 	 	8,768	
 	
Total incremental	16,649	
 	 	38,672	
 	 	22,422	
 	 	14,726	
 	 	22,010	
 	
Total capital expenditures	$	38,354	
 	 	$	57,039	
 	 	$	42,342	
 	 	$	37,953	
 	 	$	60,593	

 	

 	Non-incremental tenant improvement commitments (1)	 	 	 	
 	Non-incremental tenant improvement commitments outstanding as of June 30, 2013	 	$99,453	 	
 	New non-incremental tenant improvement commitments related to leases executed during period	 	32,288	
 	 	
 	Non-incremental tenant improvement expenditures	(11,854	)	 	 	
 	Less: Tenant improvement expenditures fulfilled through accrued liabilities already presented on Piedmont's balance sheet, expired commitments or other adjustments	(26,217	)	 	 	
 	Non-incremental tenant improvement commitments fulfilled, expired or other adjustments	 	(38,071	)	 	
 	Total as of September 30, 2013	 	$93,670	 	

 	
 	 	
NOTE:	The information presented on this page is for all consolidated assets, inclusive of our industrial properties.	
(1)	Commitments are unexpired contractual non-incremental tenant improvement obligations for leases executed in current and prior periods that have not yet been incurred and have not otherwise been presented on Piedmont's financial statements. The four largest commitments total approximately $46.6 million, or 50% of the total outstanding commitments.	

32

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

 	 	
 	 	 	 	 	 	 	 	
 	 	For the Three Months
Ended September 30, 2013	For the Nine Months
Ended September 30, 2013	For the Year Ended	 	
 	 	 	 	2012	2011	2010	 	 	
Renewal Leases	 	 	 	 	 	 	 	
 	Number of leases	15	46	45	48	37	 	 	
 	Square feet 	1,029,040	1,871,123	1,150,934	2,280,329	1,241,481	 	 	
 	Tenant improvements per square foot (1)	$18.94	$15.38	$19.12	$33.29	$14.40	 	 	
 	Leasing commissions per square foot	$2.84	$4.11	$6.64	$9.97	$8.40	 	 	
 	Total per square foot	$21.78	$19.49	$25.76	$43.26	$22.80	 	 	
 	Tenant improvements per square foot per year of lease term	$1.97	$1.88	$2.90	$3.93	$1.74	 	 	
 	Leasing commissions per square foot per year of lease term	$0.30	$0.50	$1.01	$1.18	$1.02	 	 	
 	Total per square foot per year of lease term (2)	$2.27	$2.38	$3.91	$5.11	$2.76	 	 	
New Leases (3)	

 	

 	Number of leases	23	60	92	76	56	 	 	
 	Square feet	484,857	826,285	1,765,510	1,588,271	866,212	 	 	
 	Tenant improvements per square foot (1)	$41.34	$37.91	$47.64	$41.21	$32.65	 	 	
 	Leasing commissions per square foot	$15.46	$13.78	$18.49	$15.38	$11.28	 	 	
 	Total per square foot	$56.80	$51.69	$66.13	$56.59	$43.93	 	 	
 	Tenant improvements per square foot per year of lease term	$4.17	$4.15	$4.30	$4.19	$4.16	 	 	
 	Leasing commissions per square foot per year of lease term	$1.56	$1.51	$1.67	$1.57	$1.44	 	 	
 	Total per square foot per year of lease term	$5.73	$5.66	$5.97	$5.76	$5.60	 	 	
Total	 	

 	

 	Number of leases	38	106	137	124	93	 	 	
 	Square feet	1,513,897	2,697,408	2,916,444	3,868,600	2,107,693	 	 	
 	Tenant improvements per square foot (1)	$26.12	$22.28	$36.39	$36.54	$21.90	 	 	
 	Leasing commissions per square foot	$6.88	$7.08	$13.81	$12.19	$9.59	 	 	
 	Total per square foot	$33.00	$29.36	$50.20	$48.73	$31.49	 	 	
 	Tenant improvements per square foot per year of lease term	$2.69	$2.63	$3.91	$4.05	$2.70	 	 	
 	Leasing commissions per square foot per year of lease term	$0.71	$0.84	$1.48	$1.35	$1.18	 	 	
 	Total per square foot per year of lease term	$3.40	$3.47	$5.39	$5.40	$3.88	 	 	

NOTE: This information is presented for our consolidated office assets only and excludes activity associated with storage and licensed spaces.

(1)	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, unless the Company is notified otherwise by the tenant. This assumption is made based upon the historical tenant improvement allowance usage patterns of the Company's tenants.	
(2)	During 2011, we completed two large, 15-year lease renewals with significant capital commitments: NASA at Two Independence Square in Washington, D.C. and GE at 500 West Monroe Street in Chicago, IL. If the costs associated with these renewals were to be removed from the average committed capital cost calculation, the average committed capital cost per square foot per year of lease term for renewal leases in 2011 would be $2.80. During 2012, we completed one large, long-term lease renewal with an above-average capital commitment with US Bancorp at US Bancorp Center in Minneapolis, MN. If the costs associated with this renewal were to be removed from the average committed capital cost calculation, the average committed capital cost per square foot per year of lease term for renewal leases in 2012 would be $2.73.	
(3)	Since 2010, Piedmont has selectively employed a value-add strategy for new property acquisitions. Piedmont defines value-add properties as those acquired with low occupancies at attractive bases with earnings growth and value appreciation potential achievable through leasing up such assets to stabilized occupancies. Because the value-add properties have large vacancies, many of which have not previously been leased (first generation spaces), the leasing of those vacancies negatively affects Piedmont’s contractual tenant improvements on a per foot and a per foot per year basis for new leases.	

33

Piedmont Office Realty Trust, Inc.
Geographic Diversification
As of September 30, 2013 
($ and square footage in thousands)

 	
 	 	 	 	 	 	 	 	
Location	Number of
Properties	 Annualized
Lease Revenue	 Percentage of
Annualized Lease
Revenue (%)	 Rentable
Square Footage	Percentage of
Rentable Square
Footage (%)	 Leased Square Footage	Percent Leased (%)	
Chicago	6	$129,219	22.8	4,781	22.7	3,735	78.1	
Washington, D.C.	15	116,593	20.6	3,381	16.0	2,737	81.0	
New York	6	80,789	14.3	2,432	11.5	2,381	97.9	
Minneapolis	4	44,837	7.9	1,613	7.6	1,473	91.3	
Boston	7	32,467	5.7	1,294	6.1	1,235	95.4	
Los Angeles	4	31,479	5.5	1,001	4.8	932	93.1	
Dallas	7	27,849	4.9	1,279	6.1	1,257	98.3	
Detroit	5	18,621	3.3	1,008	4.8	843	83.6	
Philadelphia	1	17,526	3.1	801	3.8	801	100.0	
Atlanta	6	17,148	3.0	1,063	5.0	696	65.5	
Nashville	2	10,040	1.8	513	2.4	513	100.0	
Houston	1	10,034	1.8	313	1.5	313	100.0	
Phoenix	4	8,994	1.6	564	2.7	477	84.6	
Central & South Florida	4	8,551	1.5	476	2.3	364	76.5	
Austin	1	6,411	1.1	195	0.9	195	100.0	
Other	4	6,113	1.1	392	1.8	356	90.8	

 	

 	

 	
Total / Weighted Average	77	$566,671	100.0	21,106	100.0	18,308	86.7	

34

Piedmont Office Realty Trust, Inc.
Geographic Diversification by Location Type
As of September 30, 2013 
(square footage in thousands)

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	CBD / URBAN INFILL	 	SUBURBAN	 	TOTAL	
Location	State	 	Number of
Properties	 Percentage
of
Annualized
Lease
Revenue
(%)	 Rentable
Square
Footage	Percentage
of Rentable
Square
Footage
(%)	 	Number of
Properties	 Percentage
of
Annualized
Lease
Revenue
(%)	 Rentable
Square
Footage	Percentage
of Rentable
Square
Footage
(%)	 	Number of
Properties	 Percentage
of
Annualized
Lease
Revenue
(%)	 Rentable
Square
Footage	Percentage
of Rentable
Square
Footage
(%)	
Chicago	IL	 	2	18.6	3,655	17.3	 	4	4.2	1,126	5.4	 	6	22.8	4,781	22.7	
Washington, D.C.	DC, VA, MD	 	10	18.3	2,900	13.7	 	5	2.3	481	2.3	 	15	20.6	3,381	16.0	
New York	NY, NJ	 	1	7.3	1,027	4.9	 	5	7.0	1,405	6.6	 	6	14.3	2,432	11.5	
Minneapolis	MN	 	1	5.0	928	4.4	 	3	2.9	685	3.2	 	4	7.9	1,613	7.6	
Boston	MA	 	2	2.1	173	0.8	 	5	3.6	1,121	5.3	 	7	5.7	1,294	6.1	
Los Angeles	CA	 	3	4.9	867	4.2	 	1	0.6	134	0.6	 	4	5.5	1,001	4.8	
Dallas	TX	 	—	—	—	—	 	7	4.9	1,279	6.1	 	7	4.9	1,279	6.1	
Detroit	MI	 	1	1.7	493	2.4	 	4	1.6	515	2.4	 	5	3.3	1,008	4.8	
Philadelphia	PA	 	1	3.1	801	3.8	 	—	—	—	—	 	1	3.1	801	3.8	
Atlanta	GA	 	2	1.9	578	2.7	 	4	1.1	485	2.3	 	6	3.0	1,063	5.0	
Nashville	TN	 	1	1.3	312	1.4	 	1	0.5	201	1.0	 	2	1.8	513	2.4	
Houston	TX	 	—	—	—	—	 	1	1.8	313	1.5	 	1	1.8	313	1.5	
Phoenix	AZ	 	—	—	—	—	 	4	1.6	564	2.7	 	4	1.6	564	2.7	
Central & South Florida	FL	 	—	—	—	—	 	4	1.5	476	2.3	 	4	1.5	476	2.3	
Austin	TX	 	—	—	—	—	 	1	1.1	195	0.9	 	1	1.1	195	0.9	
Other	
 	 	—	—	—	—	 	4	1.1	392	1.8	 	4	1.1	392	1.8	

 	 	

 	

 	

 	

 	
Total / Weighted Average	 	24	64.2	11,734	55.6	 	53	35.8	9,372	44.4	 	77	100.0	21,106	100.0	

35

Piedmont Office Realty Trust, Inc.
Industry Diversification
As of September 30, 2013 
($ and square footage in thousands)

 	
 	 	 	 	 	 	 	
 	 	 	 	Percentage of	 	 	
 	Number of	Percentage of Total	Annualized Lease	Annualized Lease	Leased Square	Percentage of Leased	
Industry	Tenants	Tenants (%)	Revenue	Revenue (%)	Footage	Square Footage (%)	
Governmental Entity	5	1.1	$84,823	15.0	2,037	11.1	
Depository Institutions	17	3.7	53,493	9.4	1,842	10.1	
Business Services	71	15.3	51,023	9.0	1,910	10.4	
Engineering, Accounting, Research, Management & Related Services	39	8.4	42,409	7.5	1,214	6.6	
Insurance Carriers	25	5.4	32,993	5.8	1,351	7.4	
Petroleum Refining & Related Industries	1	0.2	32,464	5.7	776	4.2	
Nondepository Credit Institutions	15	3.2	32,309	5.7	1,132	6.2	
Security & Commodity Brokers, Dealers, Exchanges & Services	30	6.5	17,813	3.1	647	3.5	
Communications	27	5.8	16,542	2.9	537	2.9	
Electronic & Other Electrical Equipment & Components, Except Computer	9	2.0	16,233	2.9	615	3.4	
Insurance Agents, Brokers & Services	8	1.7	15,948	2.8	684	3.7	
Educational Services	9	2.0	15,558	2.8	406	2.2	
Food & Kindred Products	3	0.6	15,229	2.7	399	2.2	
Transportation Equipment	5	1.1	14,852	2.6	595	3.3	
Automotive Repair, Services & Parking	6	1.3	14,632	2.6	49	0.3	
Other	193	41.7	110,350	19.5	4,114	22.5	
Total	463	100.0	$566,671	100.0	18,308	100.0	

36

Piedmont Office Realty Trust, Inc.
Property Investment Activity
As of September 30, 2013 
($ and square footage in thousands)

Acquisitions Over Previous Eighteen Months

Property	 	Location	Acquisition Date	Percent
Ownership (%)	Year Built	Purchase Price	 Rentable Square
Footage	 Percent Leased at
Acquisition (%)	
Gavitello Land	 	Atlanta, GA	6/28/2012	100	N/A	$2,500	N/A	N/A	
Glenridge Highlands III Land	 	Atlanta, GA	10/15/2012	100	N/A	1,725	N/A	N/A	
Arlington Gateway	(1) 	Arlington, VA	3/4/2013	100	2005	175,552	334	99	
5 & 15 Wayside Road	 	Burlington, MA	3/22/2013	100	1999 / 2001	69,321	271	95	
Royal Lane Land	 	Irving, TX	8/1/2013	100	N/A	2,600	N/A	N/A	
5301 Maryland Way	(2) 	Brentwood, TN	8/12/2013	100	1989	18,500	201	100	
4685 Investment Drive	(2) 	Troy, MI	8/12/2013	100	2000	10,000	77	100	
2020 West 89th Street	(2) 	Leawood, KS	8/12/2013	100	1992	4,250	68	85	
 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	$284,448	951	97	

Dispositions Over Previous Eighteen Months

Property	 	Location	Disposition Date	Percent
Ownership (%)	Year Built	Sale Price	 Rentable Square
Footage	 Percent Leased at
Disposition (%)	
26200 Enterprise Way	 	Lake Forest, CA	5/31/2012	100	2000	$28,250	145	100	
110 Hidden Lake Circle	Duncan, SC	9/21/2012	100	1987	16,058	474	100	
112 Hidden Lake Circle	 	Duncan, SC	9/21/2012	100	1987	9,842	313	100	
1111 Durham Avenue	 	South Plainfield, NJ	3/28/2013	100	1975	4,000	237	—	
1200 Enclave Parkway	Houston, TX	5/1/2013	100	1999	48,750	150	100	

 	

 	

 	
 	 	 	 	 	 	$106,900	1,319	82	

 	
 	 	
(1)	The property consists of approximately 334,000 square feet; however, due to the square footages referenced in several leases, the rentable square footage is currently 323,000 square feet. As the existing leases expire, the affected spaces will be re-leased to the correct square footages.	
(2)	Piedmont purchased its joint venture partner's equity interest in the asset. The gross value of the asset agreed upon by the partners for the buyout is presented on this schedule as the purchase price. The additional capital invested across the three assets included in the buyout transaction amounted to $14.7 million.	

37

Piedmont Office Realty Trust, Inc.
Value-Add Activity
As of September 30, 2013 
($ and square footage in thousands)

Presented below are properties that were acquired employing a value-add strategy. Once a property acquired under a value-add strategy reaches 80% leased, it is deemed stabilized for the purposes of supplemental reporting and will be removed from the value-add classification.

Value-Add Properties

Property	 	Location	Acquisition
Date	Percent
Ownership
(%)	Year Built	Purchase
Price	 Rentable
Square
Footage	 Current
Percent
Leased
(%)	 Percent
Leased at
Acquisition
(%)	 Real Estate
Gross Book
Value	 Estimated Cost to
Stabilize (per VACANT
square foot)	
Suwanee Gateway One	Suwanee, GA	9/28/2010	100	2008	$7,875	142	—	—	$7,953	$40 - 60	
500 West Monroe Street	(1)	Chicago, IL	3/31/2011	100	1991	227,500	966	60	49	226,041	$60 - 90	
The Medici	(2)	Atlanta, GA	6/7/2011	100	2008	13,210	152	27	12	13,939	$35 - 60	
400 TownPark	Lake Mary, FL	11/10/2011	100	2008	23,865	176	34	19	23,705	$35 - 50	
5301 Maryland Way	(3)	Brentwood, TN	8/12/2013	100	1989	18,500	201	100	100	15,457	$50 - 75	
 	 	 	 	 	 	$290,950	1,637	54	44	$287,095	

 	

 	 	 	 	 	 	 	 	 	 	 	 	

 	
 	 	
(1)	The investment in this property was converted from a structured finance investment to an owned real estate asset through a UCC foreclosure of an equity ownership interest on March 31, 2011. The purchase price presented represents the estimated fair value of the real estate assets comprising the property as of the date of the transaction. The percent leased at acquisition reflects the space leased by Marsh USA as vacant, as the tenant had already announced plans to vacate prior to Piedmont's assumption of ownership of the asset.	
(2)	The percent leased at acquisition reflects the space leased by BV Card Assets as vacant, as the tenant had already announced plans to vacate prior to Piedmont's acquisition of the property.	
(3)	While the property was 100% leased at acquisition, it is anticipated that the single-tenant building will become vacant at the end of the current lease term and the building will have to be re-leased on a multi-tenant basis. For this reason, the building was acquired as a value-add property. Piedmont purchased its joint venture partner's equity interest in the asset. The gross value of the asset agreed upon by the partners for the buyout is presented on this schedule as the purchase price.	

38

Piedmont Office Realty Trust, Inc.
Other Investments
As of September 30, 2013 
($ and square footage in thousands)

Unconsolidated Joint Venture Properties

Property	Location	Percent
Ownership (%)	Year Built	Piedmont Share
of Real Estate
Net Book Value	 Real Estate
Net Book Value	 Rentable
Square Footage	 Percent
Leased (%)	
8560 Upland Drive	Parker, CO	72	2001	$7,471	$10,392	148.2	74	
Two Park Center	Hoffman Estates, IL	72	1999	10,750	14,954	193.7	39	
 	 	 	 	$18,221	$25,346	341.9	54	

Land Parcels

Property	Location	Acres	Approximate Current Value	
Gavitello	 Atlanta, GA	2.0	$2,500	
Glenridge Highlands III	 Atlanta, GA	3.0	1,725	
Enclave Parkway	 Houston, TX	4.7	2,600	
State Highway 161	 Irving, TX	4.5	1,200	
Royal Lane	Irving, TX	10.6	2,600	

 	24.8	$10,625	

39

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 included beginning on page42.	

 	
Adjusted Funds From Operations ("AFFO"): AFFO is calculated by deducting from Core FFO non-incremental capital expenditures and acquisition-related costs 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 has been executed, but excluding a) rental abatements and b) 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 (excluding abatements) plus any operating expense reimbursements for the initial month of the lease term, by (ii) 12. Unless stated otherwise, this measure excludes our unconsolidated joint venture interests.	
 	
Core EBITDA: Core EBITDA is defined as net income before interest, taxes, depreciation and amortization and incrementally removing any impairment losses, gains or losses from sales of property, or other significant non-recurring 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 gains or losses on the early extinguishment of debt, acquisition-related costs and other significant non-recurring 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.	
 	
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, impairment losses, and gains or losses on consolidation, adding back depreciation and amortization on real estate assets, and after the same adjustments for unconsolidated partnerships and joint ventures. These adjustments 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.	
 	
Gross Assets: Gross assets is defined as total assets with the add back of accumulated depreciation and accumulated amortization related to real estate assets.	
 	
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.	
 	
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 ("Leasing Costs") incurred to lease space that was vacant at acquisition, Leasing Costs for spaces vacant for greater than one year, Leasing Costs for spaces at newly acquired properties for which in-place leases expire shortly after acquisition, improvements associated with the expansion of a building and renovations that change the underlying classification of a building are included in this measure.	
 	
NOI from Unconsolidated Joint Ventures: NOI from Unconsolidated Joint Ventures is defined as Property NOI attributable to our interests in 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, in addition to other capital expenditures that qualify as Incremental Capital Expenditures, as defined above.	
 	
Property Net Operating Income ("Property NOI"): Property NOI is defined as real estate operating income with the add-back of corporate general and administrative expense, depreciation and amortization, and impairment losses and the deduction of income associated with property management performed by Piedmont for other organizations. We may present this measure on an accrual basis or a cash basis. When presented on a cash basis, the effects of straight lined rents and fair value lease revenue are eliminated. The Company uses this measure to assess its operating results and believes it is important in assessing operating performance. Property 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 Net Operating Income ("Same Store NOI"): Same Store NOI is calculated as the Property 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 unconsolidated joint venture assets. We may present this measure on an accrual basis or a cash basis. When presented on a cash basis, the effects of straight lined rents and fair value lease revenue are eliminated. We believe Same Store NOI is an important measure of comparison of our properties' operating performance from one period to another. 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 unconsolidated joint venture assets. We believe Same Store Properties is an important measure of comparison of our stabilized portfolio performance.	

40

Piedmont Office Realty Trust, Inc.
Research Coverage

Equity Research Coverage

Paul E. Adornato, CFA	Michael Knott, CFA	Vance H. Edelson	
BMO Capital Markets	Jed Reagan	Morgan Stanley	
3 Times Square, 26th Floor	Green Street Advisors	1585 Broadway, 38th Floor	
New York, NY 10036	660 Newport Center Drive, Suite 800	New York, NY 10036	
Phone: (212) 885-4170	Newport Beach, CA 92660	Phone: (212) 761-0078	
 	Phone: (949) 640-8780	 	

Brendan Maiorana	John W. Guinee, III	Michael J. Salinsky	
Wells Fargo	Erin Aslakson	RBC Capital Markets	
7 St. Paul Street	Stifel, Nicolaus & Company	Arbor Court	
MAC R1230-011	One South Street	30575 Bainbridge Road, Suite 250	
Baltimore, MD 21202	16th Floor	Solon, OH 44139	
Phone: (443) 263-6516	Baltimore, MD 21202	Phone: (440) 715-2648	
 	Phone: (443) 224-1307	 	

Anthony Paolone, CFA	David Rodgers, CFA	 	
JP Morgan	Robert W. Baird & Co.	 	
383 Madison Avenue	200 Public Square	 	
34th Floor	Suite 1650	 	
New York, NY 10179	Cleveland, OH 44139	 	
Phone: (212) 622-6682	Phone: (216) 737-7341	 	

Fixed Income Research Coverage

Mark S. Streeter, CFA	 	 	
JP Morgan	 	 	
383 Madison Avenue	 	 	
3rd Floor	 	 	
New York, NY 10179	 	 	
Phone: (212) 834-5086	 	 	

 	 	 	

41

Piedmont Office Realty Trust, Inc.
Funds From Operations, Core Funds From Operations, and Adjusted Funds From Operations Reconciliations
Unaudited (in thousands)

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 Three Months Ended	 	Nine Months Ended	
 	9/30/2013	 	6/30/2013	 	3/31/2013	 	12/31/2012	 	9/30/2012	 	9/30/2013	 	9/30/2012	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to Piedmont	$	19,096	
 	 	$	35,358	
 	 	$	14,651	
 	 	$	14,438	
 	 	$	10,831	
 	 	$	69,105	
 	 	$	78,766	
 	
Depreciation	31,050	
 	 	30,969	
 	 	29,886	
 	 	29,735	
 	 	28,763	
 	 	91,905	
 	 	84,605	
 	
Amortization	13,939	
 	 	11,350	
 	 	9,220	
 	 	10,666	
 	 	15,366	
 	 	34,509	
 	 	39,744	
 	
Impairment loss	—	
 	 	—	
 	 	6,402	
 	 	—	
 	 	—	
 	 	6,402	
 	 	—	
 	
Loss / (gain) on sale of properties	—	
 	 	(16,258	)	 	—	
 	 	6	
 	 	254	
 	 	(16,258	)	 	(27,583	)	
Loss / (gain) on consolidation	898	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	898	
 	 	—	
 	
Funds from operations	64,983	
 	 	61,419	
 	 	60,159	
 	 	54,845	
 	 	55,214	
 	
 	186,561	
 	 	175,532	
 	
Adjustments:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Acquisition costs	60	
 	 	70	
 	 	1,244	
 	 	53	
 	 	7	
 	 	1,374	
 	 	88	
 	
Litigation settlement expense / (recovery)	—	
 	 	(1,250	)	 	—	
 	 	—	
 	 	7,500	
 	 	(1,250	)	 	7,500	
 	
Net casualty loss / (recoveries)	(3,919	)	 	(2,320	)	 	161	
 	 	5,170	
 	 	—	
 	 	(6,078	)	 	—	
 	
Core funds from operations	61,124	
 	 	57,919	
 	 	61,564	
 	 	60,068	
 	 	62,721	
 	 	180,607	
 	 	183,120	
 	
Adjustments:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Deferred financing cost amortization	674	
 	 	643	
 	 	594	
 	 	592	
 	 	663	
 	 	1,911	
 	 	2,056	
 	
Amortization of discount on senior notes
and swap settlements	13	
 	 	7	
 	 	—	
 	 	—	
 	 	—	
 	 	20	
 	 	—	
 	
Depreciation of non real estate assets	97	
 	 	105	
 	 	98	
 	 	104	
 	 	196	
 	 	300	
 	 	397	
 	
Straight-line effects of lease revenue	(5,076	)	 	(5,547	)	 	(4,032	)	 	(5,917	)	 	(4,193	)	 	(14,655	)	 	(11,236	)	
Stock-based and other non-cash
compensation expense	719	
 	 	176	
 	 	594	
 	 	754	
 	 	869	
 	 	1,489	
 	 	1,492	
 	
Amortization of lease-related intangibles	(1,757	)	 	(1,245	)	 	(1,065	)	 	(1,046	)	 	(1,315	)	 	(4,067	)	 	(4,631	)	
Acquisition costs	(60	)	 	(70	)	 	(1,244	)	 	(53	)	 	(7	)	 	(1,374	)	 	(88	)	
Non-incremental capital expenditures	(21,705	)	 	(18,367	)	 	(19,920	)	 	(23,227	)	 	(38,583	)	 	(59,992	)	 	(64,430	)	
Adjusted funds from operations	$	34,029	
 	 	$	33,621	
 	 	$	36,589	
 	 	$	31,275	
 	 	$	20,351	
 	
 	$	104,239	
 	 	$	106,680	

42

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

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Three Months Ended	 	Nine Months Ended	
 	9/30/2013	 	6/30/2013	 	3/31/2013	 	12/31/2012	 	9/30/2012	 	9/30/2013	 	9/30/2012	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to Piedmont	$	19,096	
 	 	$	35,358	
 	 	$	14,651	
 	 	$	14,438	
 	 	$	10,831	
 	 	69,105	
 	 	78,766	
 	
Net income attributable to noncontrolling
interest	4	
 	 	4	
 	 	4	
 	 	4	
 	 	4	
 	 	12	
 	 	12	
 	
Interest expense	19,331	
 	 	18,228	
 	 	16,373	
 	 	16,296	
 	 	16,247	
 	 	53,932	
 	 	48,727	
 	
Depreciation	31,147	
 	 	31,074	
 	 	29,984	
 	 	29,839	
 	 	28,959	
 	 	92,204	
 	 	85,002	
 	
Amortization	13,939	
 	 	11,350	
 	 	9,220	
 	 	10,666	
 	 	15,366	
 	 	34,509	
 	 	39,744	
 	
Acquisition costs	60	
 	 	70	
 	 	1,244	
 	 	53	
 	 	7	
 	 	1,374	
 	 	88	
 	
Impairment loss	—	
 	 	—	
 	 	6,402	
 	 	—	
 	 	—	
 	 	6,402	
 	 	—	
 	
Litigation settlement expense / (recovery)	—	
 	 	(1,250	)	 	—	
 	 	—	
 	 	7,500	
 	 	(1,250	)	 	7,500	
 	
Net casualty loss / (recoveries)	(3,919	)	 	(2,320	)	 	161	
 	 	5,170	
 	 	—	
 	 	(6,078	)	 	—	
 	
Loss / (gain) on sale of properties	—	
 	 	(16,258	)	 	—	
 	 	6	
 	 	254	
 	 	(16,258	)	 	(27,583	)	
Loss / (gain) on consolidation	898	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	898	
 	 	—	
 	
Core EBITDA	80,556	
 	 	76,256	
 	 	78,039	
 	 	76,472	
 	 	79,168	
 	 	234,850	
 	 	232,256	
 	
General & administrative expenses	5,921	
 	 	6,410	
 	 	4,609	
 	 	5,179	
 	 	5,576	
 	 	16,940	
 	 	15,761	
 	
Management fee revenue	(890	)	 	(513	)	 	(631	)	 	(599	)	 	(520	)	 	(2,034	)	 	(1,720	)	
Interest and other income	550	
 	 	(12	)	 	21	
 	 	(121	)	 	(390	)	 	561	
 	 	(873	)	
Straight-line effects of lease revenue	(5,076	)	 	(5,547	)	 	(4,032	)	 	(5,917	)	 	(4,193	)	 	(14,655	)	 	(11,236	)	
Net effect of amortization of above/(below)
market in-place lease intangibles	(1,757	)	 	(1,245	)	 	(1,065	)	 	(1,046	)	 	(1,315	)	 	(4,067	)	 	(4,631	)	
Property net operating income - cash basis	79,304	
 	 	75,349	
 	 	76,941	
 	 	73,968	
 	 	78,326	
 	 	231,595	
 	 	229,557	
 	
Net operating income from:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Acquisitions	(6,155	)	 	(3,680	)	 	(836	)	 	17	
 	 	7	
 	 	(10,672	)	 	7	
 	
Dispositions	2	
 	 	(107	)	 	57	
 	 	11	
 	 	(319	)	 	(49	)	 	(2,487	)	
Unconsolidated joint ventures	(376	)	 	(597	)	 	(744	)	 	(576	)	 	(735	)	 	(1,717	)	 	(1,923	)	
Same store net operating income
- cash basis	$	72,775	
 	 	$	70,965	
 	 	$	75,418	
 	 	$	73,420	
 	 	$	77,279	
 	 	$	219,157	
 	 	$	225,154	

43

Piedmont Office Realty Trust, Inc.
Unconsolidated Joint Venture Net Operating Income Reconciliations
Pro rata and unaudited (in thousands)

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Three Months Ended	 	Nine Months Ended	
 	9/30/2013	 	6/30/2013	 	3/31/2013	 	12/31/2012	 	9/30/2012	 	9/30/2013	 	9/30/2012	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Equity in income of unconsolidated joint ventures	$	46	
 	 	$	163	
 	 	$	395	
 	 	$	185	
 	 	$	323	
 	 	$	604	
 	 	$	739	

Interest expense	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	

Depreciation	220	
 	 	309	
 	 	300	
 	 	290	
 	 	306	
 	 	829	
 	 	902	

Amortization	40	
 	 	45	
 	 	41	
 	 	34	
 	 	41	
 	 	125	
 	 	123	

Impairment loss	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	

Loss / (gain) on sale of properties	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	

Core EBITDA	306	
 	 	517	
 	 	736	
 	 	509	
 	 	670	
 	 	1,558	
 	 	1,764	

General and administrative expenses	79	
 	 	120	
 	 	60	
 	 	45	
 	 	31	
 	 	260	
 	 	84	

Interest and other income	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	(21	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property net operating income (accrual basis)	385	
 	 	637	
 	 	796	
 	 	554	
 	 	701	
 	 	1,818	
 	 	1,827	

Straight-line effects of lease revenue	(9	)	 	(40	)	 	(52	)	 	22	
 	 	34	
 	 	(101	)	 	96	

Net effect of amortization of above/(below) market in-place lease intangibles	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	

Property net operating income (cash basis)	$	376	
 	 	$	597	
 	 	$	744	
 	 	$	576	
 	 	$	735	
 	 	$	1,717	
 	 	$	1,923	

44

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

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Three Months Ended	 	Nine Months Ended	
 	9/30/2013	 	6/30/2013	 	3/31/2013	 	12/31/2012	 	9/30/2012	 	9/30/2013	 	9/30/2012	
Revenues:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental income	$	516	
 	 	$	750	
 	 	$	1,427	
 	 	$	3,085	
 	 	$	2,388	
 	 	$	2,693	
 	 	$	8,403	
 	
Tenant reimbursements	91	
 	 	221	
 	 	338	
 	 	154	
 	 	410	
 	 	650	
 	 	1,298	
 	
Other rental income	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	
 	607	
 	 	971	
 	 	1,765	
 	 	3,239	
 	 	2,798	
 	 	3,343	
 	 	9,701	
 	
Expenses:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property operating costs	316	
 	 	285	
 	 	847	
 	 	973	
 	 	1,262	
 	 	1,448	
 	 	3,834	
 	
Depreciation	141	
 	 	141	
 	 	405	
 	 	587	
 	 	732	
 	 	687	
 	 	2,379	
 	
Amortization	21	
 	 	21	
 	 	96	
 	 	126	
 	 	159	
 	 	138	
 	 	527	
 	
General and administrative	—	
 	 	2	
 	 	—	
 	 	(2	)	 	38	
 	 	2	
 	 	47	
 	
 	478	
 	 	449	
 	 	1,348	
 	 	1,684	
 	 	2,191	
 	 	2,275	
 	 	6,787	
 	
Other income / (expense):	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest expense	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	
Interest and other income / (expense)	(1	)	 	13	
 	 	12	
 	 	—	
 	 	—	
 	 	24	
 	 	—	
 	
Net casualty recoveries / (loss)	—	
 	 	17	
 	 	—	
 	 	—	
 	 	—	
 	 	17	
 	 	—	
 	
Net income attributable to noncontrolling interest	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	
 	(1	)	 	30	
 	 	12	
 	 	—	
 	 	—	
 	 	41	
 	 	—	

Operating income, excluding impairment loss and gain on sale	128	
 	 	552	
 	 	429	
 	 	1,555	
 	 	607	
 	 	1,109	
 	 	2,914	

Impairment loss	—	
 	 	—	
 	 	(6,402	)	 	—	
 	 	—	
 	 	(6,402	)	 	—	
 	
Gain / (loss) on sale of properties	—	
 	 	16,258	
 	 	—	
 	 	(6	)	 	(254	)	 	16,258	
 	 	27,583	

Income from discontinued operations	$	128	
 	 	$	16,810	
 	 	$	(5,973	)	 	$	1,549	
 	 	$	353	
 	 	$	10,965	
 	 	$	30,497	

45

Piedmont Office Realty Trust, Inc.
Property Detail
As of September 30, 2013 
(in thousands)

 	
 	 	 	 	 	 	 	 	 	 	 	 	
Property	City	State	Percent
Ownership	Year Built	Rentable
Square
Footage
Owned	Leased
Percentage	Commenced
Leased
Percentage	Economic
Leased
Percentage (1)	
 	 	 	 	 	 	 	 	 	
Atlanta	

 	

 	

 	
 	
11695 Johns Creek Parkway	 Johns Creek	 GA	100.0%	2001	101	85.1	%	78.2	%	78.2	%	
3750 Brookside Parkway	 Alpharetta	 GA	100.0%	2001	104	77.9	%	56.7	%	56.7	%	
Glenridge Highlands Two	 Atlanta	 GA	100.0%	2000	426	83.6	%	82.4	%	70.2	%	
Suwanee Gateway One	 Suwanee	 GA	100.0%	2008	142	0.0%	
 	0.0%	
 	0.0%	
 	
The Dupree	 Atlanta	 GA	100.0%	1997	138	95.7	%	82.6	%	79.0	%	
The Medici	 Atlanta	 GA	100.0%	2008	152	27.0	%	27.0	%	17.8	%	
Metropolitan Area Subtotal / Weighted Average	

 	
 	1,063	65.5	%	60.6	%	53.9	%	
Austin	

 	

 	

Braker Pointe III	 Austin	 TX	100.0%	2001	195	100.0	%	100.0	%	100.0	%	
Metropolitan Area Subtotal / Weighted Average	

 	
 	195	100.0	%	100.0	%	100.0	%	
Boston	

 	

 	

1200 Crown Colony Drive	 Quincy	 MA	100.0%	1990	235	100.0	%	100.0	%	100.0	%	
90 Central Street	 Boxborough	 MA	100.0%	2001	175	95.4	%	95.4	%	95.4	%	
1414 Massachusetts Avenue	 Cambridge	 MA	100.0%	1873	78	100.0	%	100.0	%	100.0	%	
One Brattle Square	 Cambridge	 MA	100.0%	1991	95	94.7	%	94.7	%	94.7	%	
225 Presidential Way	 Woburn	 MA	100.0%	2001	202	100.0	%	100.0	%	100.0	%	
235 Presidential Way	 Woburn	 MA	100.0%	2000	238	100.0	%	100.0	%	100.0	%	
5 & 15 Wayside Road	 Burlington	 MA	100.0%	1999 / 2001	271	83.0	%	83.0	%	83.0	%	
Metropolitan Area Subtotal / Weighted Average	

 	
 	1,294	95.4	%	95.4	%	95.4	%	
Chicago	

 	

 	

Windy Point I	 Schaumburg	 IL	100.0%	1999	187	100.0	%	100.0	%	100.0	%	
Windy Point II	 Schaumburg	 IL	100.0%	2001	301	100.0	%	83.1	%	0.0%	
 	
Aon Center	 Chicago	 IL	100.0%	1972	2,689	80.6	%	78.8	%	75.8	%	
Two Pierce Place	 Itasca	 IL	100.0%	1991	486	82.7	%	82.7	%	80.9	%	
2300 Cabot Drive	 Lisle	 IL	100.0%	1998	152	72.4	%	69.7	%	59.2	%	
500 West Monroe Street	 Chicago	 IL	100.0%	1991	966	58.9	%	50.7	%	12.2	%	
Metropolitan Area Subtotal / Weighted Average	

 	
 	4,781	78.1	%	74.4	%	59.1	%	
Cleveland	

 	

 	

Eastpoint I	 Mayfield Heights	 OH	100.0%	2000	83	69.9	%	0.0%	
 	0.0%	
 	
Eastpoint II	 Mayfield Heights	 OH	100.0%	2000	85	95.3	%	95.3	%	95.3	%	
Metropolitan Area Subtotal / Weighted Average	

 	
 	168	82.7	%	48.2	%	48.2	%	

46

 	
 	 	 	 	 	 	 	 	 	 	 	 	
Property	City	State	Percent
Ownership	Year Built	Rentable
Square
Footage
Owned	Leased
Percentage	Commenced
Leased
Percentage	Economic
Leased
Percentage (1)	
 	 	 	 	 	 	 	 	 	
Dallas	

 	

 	

3900 Dallas Parkway	 Plano	 TX	100.0%	1999	120	100.0	%	100.0	%	100.0	%	
5601 Headquarters Drive	 Plano	 TX	100.0%	2001	166	100.0	%	100.0	%	100.0	%	
6031 Connection Drive	 Irving	 TX	100.0%	1999	232	100.0	%	95.3	%	84.1	%	
6021 Connection Drive	 Irving	 TX	100.0%	2000	223	100.0	%	100.0	%	100.0	%	
6011 Connection Drive	 Irving	 TX	100.0%	1999	152	100.0	%	100.0	%	100.0	%	
Las Colinas Corporate Center I	 Irving	 TX	100.0%	1998	159	97.5	%	97.5	%	97.5	%	
Las Colinas Corporate Center II	 Irving	 TX	100.0%	1998	227	92.1	%	68.7	%	67.4	%	
Metropolitan Area Subtotal / Weighted Average	

 	
 	1,279	98.3	%	93.3	%	91.0	%	
Denver	

 	

 	

350 Spectrum Loop	 Colorado Springs	 CO	100.0%	2001	156	100.0	%	100.0	%	100.0	%	
Metropolitan Area Subtotal / Weighted Average	

 	
 	156	100.0	%	100.0	%	100.0	%	
Detroit	

 	

 	

1441 West Long Lake Road	 Troy	 MI	100.0%	1999	108	87.0	%	83.3	%	65.7	%	
150 West Jefferson	 Detroit	 MI	100.0%	1989	493	69.4	%	69.4	%	65.9	%	
Auburn Hills Corporate Center	 Auburn Hills	 MI	100.0%	2001	120	100.0	%	100.0	%	100.0	%	
1075 West Entrance Drive	 Auburn Hills	 MI	100.0%	2001	210	100.0	%	100.0	%	100.0	%	
4685 Investment Drive	 Troy	 MI	100.0%	2000	77	100.0	%	100.0	%	7.8	%	
Metropolitan Area Subtotal / Weighted Average	

 	
 	1,008	83.6	%	83.2	%	72.6	%	
Central & South Florida	

 	

 	

Sarasota Commerce Center II	Sarasota	FL	100.0%	1999	152	98.7	%	98.7	%	84.2	%	
5601 Hiatus Road	Tamarac	FL	100.0%	2001	100	100.0	%	100.0	%	100.0	%	
2001 NW 64th Street	Ft. Lauderdale	FL	100.0%	2001	48	100.0	%	100.0	%	100.0	%	
400 TownPark	Lake Mary	FL	100.0%	2008	176	37.5	%	34.1	%	34.1	%	
Metropolitan Area Subtotal / Weighted Average	

 	
 	476	76.5	%	75.2	%	70.6	%	
Houston	

 	

 	

1430 Enclave Parkway	Houston	TX	100.0%	1994	313	100.0	%	100.0	%	100.0	%	
Metropolitan Area Subtotal / Weighted Average	

 	
 	313	100.0	%	100.0	%	100.0	%	
Kansas City	

 	

 	

2020 West 89th Street	Leawood	KS	100.0%	1992	68	89.7	%	89.7	%	89.7	%	
Metropolitan Area Subtotal / Weighted Average	

 	
 	68	89.7	%	89.7	%	89.7	%	
Los Angeles	

 	

 	

800 North Brand Boulevard	Glendale	CA	100.0%	1990	518	90.3	%	80.3	%	80.3	%	
1055 East Colorado Boulevard	Pasadena	CA	100.0%	2001	176	98.3	%	98.3	%	46.6	%	
Fairway Center II	Brea	CA	100.0%	2002	134	97.8	%	97.8	%	97.8	%	
1901 Main Street	Irvine	CA	100.0%	2001	173	92.5	%	78.6	%	52.6	%	
Metropolitan Area Subtotal / Weighted Average	

 	
 	1,001	93.1	%	85.5	%	71.9	%	
Minneapolis	

 	

 	

Crescent Ridge II	Minnetonka	MN	100.0%	2000	301	73.1	%	73.1	%	64.8	%	
US Bancorp Center	Minneapolis	MN	100.0%	2000	928	95.4	%	93.6	%	93.1	%	
One Meridian Crossings	Richfield	MN	100.0%	1997	195	100.0	%	100.0	%	100.0	%	
Two Meridian Crossings	Richfield	MN	100.0%	1998	189	91.5	%	91.5	%	91.5	%	
Metropolitan Area Subtotal / Weighted Average	

 	
 	1,613	91.3	%	90.3	%	88.5	%	

47

 	
 	 	 	 	 	 	 	 	 	 	 	 	
Property	City	State	Percent
Ownership	Year Built	Rentable
Square
Footage
Owned	Leased
Percentage	Commenced
Leased
Percentage	Economic
Leased
Percentage (1)	
 	 	 	 	 	 	 	 	 	
Nashville	

 	

 	

2120 West End Avenue	Nashville	TN	100.0%	2000	312	100.0	%	100.0	%	100.0	%	
5301 Maryland Way	Brentwood	TN	100.0%	1989	201	100.0	%	100.0	%	100.0	%	
Metropolitan Area Subtotal / Weighted Average	

 	
 	513	100.0	%	100.0	%	100.0	%	
New York	

 	

 	

2 Gatehall Drive	Parsippany	NJ	100.0%	1985	405	100.0	%	100.0	%	100.0	%	
200 Bridgewater Crossing	Bridgewater	NJ	100.0%	2002	309	88.3	%	88.3	%	50.8	%	
Copper Ridge Center	Lyndhurst	NJ	100.0%	1989	268	94.4	%	94.4	%	91.0	%	
60 Broad Street	New York	NY	100.0%	1962	1,027	100.0	%	100.0	%	100.0	%	
600 Corporate Drive	Lebanon	NJ	100.0%	2005	125	100.0	%	100.0	%	100.0	%	
400 Bridgewater Crossing	Bridgewater	NJ	100.0%	2002	298	100.0	%	100.0	%	100.0	%	
Metropolitan Area Subtotal / Weighted Average	

 	
 	2,432	97.9	%	97.9	%	92.8	%	
Philadelphia	

 	

 	

1901 Market Street	Philadelphia	PA	100.0%	1987	801	100.0	%	100.0	%	100.0	%	
Metropolitan Area Subtotal / Weighted Average	

 	
 	801	100.0	%	100.0	%	100.0	%	
Phoenix	

 	

 	

River Corporate Center	Tempe	AZ	100.0%	1998	133	100.0	%	100.0	%	100.0	%	
8700 South Price Road	Tempe	AZ	100.0%	2000	132	100.0	%	100.0	%	100.0	%	
Desert Canyon 300	Phoenix	AZ	100.0%	2001	149	100.0	%	100.0	%	100.0	%	
Chandler Forum	Chandler	AZ	100.0%	2003	150	42.0	%	42.0	%	42.0	%	
Metropolitan Area Subtotal / Weighted Average	

 	
 	564	84.6	%	84.6	%	84.6	%	
Washington, D.C.	

 	

 	

11107 Sunset Hills Road	Reston	VA	100.0%	1985	101	100.0	%	100.0	%	100.0	%	
1201 Eye Street	Washington	DC	49.5% (2)	2001	269	100.0	%	100.0	%	100.0	%	
1225 Eye Street	Washington	DC	49.5% (2)	1986	225	86.2	%	86.2	%	86.2	%	
3100 Clarendon Boulevard	Arlington	VA	100.0%	1987	250	98.4	%	98.4	%	98.4	%	
400 Virginia Avenue	Washington	DC	100.0%	1985	224	87.1	%	87.1	%	87.1	%	
4250 North Fairfax Drive	Arlington	VA	100.0%	1998	305	91.8	%	91.8	%	91.8	%	
9211 Corporate Boulevard	Rockville	MD	100.0%	1989	115	100.0	%	100.0	%	100.0	%	
9221 Corporate Boulevard	Rockville	MD	100.0%	1989	115	100.0	%	100.0	%	100.0	%	
One Independence Square	Washington	DC	100.0%	1991	334	0.3	%	0.3	%	0.3	%	
9200 Corporate Boulevard	Rockville	MD	100.0%	1982	109	100.0	%	100.0	%	100.0	%	
11109 Sunset Hills Road	Reston	VA	100.0%	1984	41	0.0%	
 	0.0%	
 	0.0%	
 	
Two Independence Square	Washington	DC	100.0%	1991	561	100.0	%	100.0	%	100.0	%	
Piedmont Pointe I	Bethesda	MD	100.0%	2007	186	68.8	%	68.8	%	68.8	%	
Piedmont Pointe II	Bethesda	MD	100.0%	2008	223	54.7	%	51.6	%	50.7	%	
Arlington Gateway (3)	Arlington	VA	100.0%	2005	323	93.2	%	93.2	%	93.2	%	
Metropolitan Area Subtotal / Weighted Average	

 	
 	3,381	81.0	%	80.7	%	80.7	%	

 	

 	

 	
 	
Grand Total	

 	
 	21,106	86.7	%	84.5	%	78.6	%	

 	

 	

 	

 	
 	 	
(1)	Economic leased percentage excludes the square footage associated with executed but not commenced leases for currently vacant spaces and the square footage associated with tenants receiving rental abatements (after proportional adjustments for tenants receiving only partial rental abatements).	
(2)	Although Piedmont owns 49.5% of the asset, it is entitled to 100% of the cash flows under the terms of the property ownership entity's joint venture agreement.	
(3)	The property consists of approximately 334,000 square feet; however, due to the square footages referenced in several leases, the rentable square footage is currently 323,000 square feet. As the existing leases expire, the affected spaces will be re-leased to the correct square footages.	

48

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 our actual results and expectations to differ materially from those described in our forward-looking statements: market and economic conditions remain challenging and the demand for office space, rental rates and property values may continue to lag the general economic recovery causing our business, results of operations, cash flows, financial condition and access to capital to be adversely affected or otherwise impact performance, including the potential recognition of impairment charges; the success of our real estate strategies and investment objectives, including our ability to identify and consummate suitable acquisitions; acquisitions of properties may have unknown risks and other liabilities at the time of acquisition; lease terminations or lease defaults, particularly by one of our large lead tenants; the impact of competition on our efforts to renew existing leases or re-let space on terms similar to existing leases; changes in the economies and other conditions of the office market in general and of the specific markets in which we operate, particularly in Chicago, Washington, D.C., and the New York metropolitan area; economic and regulatory changes, including accounting standards, that impact the real estate market generally; additional risks and costs associated with directly managing properties occupied by government tenants; adverse market and economic conditions may continue to adversely affect us and could cause us to recognize impairment charges or otherwise impact our performance; availability of financing and our lending banks' ability to honor existing line of credit commitments; we have significant indebtedness and may not be able to meet our debt service obligations; costs of complying with governmental laws and regulations; uncertainties associated with environmental and other regulatory matters; potential changes in political environment and reduction in federal and/or state funding of our governmental tenants; we may be subject to litigation, which could have a material adverse effect on our financial condition; our ability to continue to qualify as a real estate investment trust under the Internal Revenue Code; and other factors detailed in our most recent Annual Report on Form 10-K and other documents we file with the Securities and Exchange Commission.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this supplemental 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.

49