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) August 10, 2010

Piedmont Office Realty Trust, Inc.
(Exact name of registrant as specified in its charter)

Maryland
(State or other jurisdiction of incorporation)

001-34626	 	58-2328421	
(Commission
File Number)	 	(IRS Employer
Identification No.)	
11695 Johns Creek Parkway, Ste. 350, Johns Creek, Georgia 30097
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code (770) 418-8800
 
(Former name or former address, if changed since last report)

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

 

Item 2.02	Results of Operations and Financial Condition	
On August 10, 2010, Piedmont Office Realty Trust, Inc. (the “Registrant”) issued a press release announcing its financial results for the second quarter 2010 and published supplemental information for the second quarter 2010 to its website. The press release and the supplemental information are attached hereto as Exhibit 99.1 and 99.2, respectively, and are incorporated herein by reference. Pursuant to the rules and regulations of the Securities and Exchange Commission, such exhibits and the information set forth therein are deemed to have been furnished and shall not be deemed to be “filed” under the Securities Exchange Act of 1934.
 
Item 9.01.	Financial Statements and Exhibits.	
(d) Exhibits:

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

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

PIEDMONT OFFICE REALTY TRUST, INC.	
 	 	
By:	 	/S/    ROBERT E. BOWERS        	
 	 	Robert E. Bowers	
 	 	Chief Financial Officer and Executive Vice President	
Date: August 10, 2010

EXHIBIT INDEX

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

Exhibit 99.1

Piedmont Office Realty Trust Declares Dividend and Reports Quarterly Financial Results
ATLANTA, August 10, 2010—Piedmont Office Realty Trust, Inc. (“Piedmont” or the “Company”) (NYSE:PDM), an owner of primarily Class A properties located predominantly in the ten largest U.S. office markets, today declared its third quarter 2010 dividend in the amount of $0.315 per share and announced its results for the quarter ended June 30, 2010.
Donald A. Miller, CFA, President and Chief Executive Officer, stated, “Our ongoing focus on leasing is evident as we increased activity during the quarter while slightly increasing our occupancy and adding to our roster of high quality tenants. The overall office market remains challenging, but we believe we are well-positioned with high quality assets and a strong, low-leverage balance sheet. In this environment, we continue to control what we can and have kept a tight rein on property operating costs. We plan to remain patient and disciplined with regard to acquisitions, but intend to take advantage of market opportunities to enhance our presence in key strategic markets.”
Dividend
On August 10, 2010, the board of directors of Piedmont declared dividends for the third quarter 2010 in the amount of $0.315 per share on all classes of outstanding common shares of Piedmont to stockholders of record for such shares as shown on the books of Piedmont as of the close of business on September 15, 2010. Such dividends are to be paid on September 22, 2010.
Results for the Second Quarter ended June 30, 2010
All prior period per share amounts have been retroactively restated to reflect the stockholder-approved recapitalization of our common stock and current period per share amounts reflect the issuance of 13.8 million shares of common stock in our recent public offering. Both the recapitalization and issuance of stock occurred during the first quarter of 2010.
Piedmont’s net income available to common stockholders was $19.6 million, or $0.11 per diluted share, for the second quarter of 2010, compared with $28.0 million, or $0.18 per diluted share for the second quarter of 2009. Excluding the previously announced $9.6 million impairment charge associated with adjusting the 111 Sylvan Avenue property to estimated fair value in anticipation of a sale, net income available to stockholders would have been $29.2 million, or $0.17 per diluted share, in the second quarter of 2010. Funds from Operations (FFO) for the quarter totaled $56.6 million, or $0.33 per diluted share. Core Funds from Operations

(which excludes the impairment charge associated with the 111 Sylvan Avenue property) totaled $66.2 million, or $0.38 per diluted share which reflects approximately $.035 in dilution related to the issuance of 13.8 million shares of common stock during first quarter of 2010 when compared to $68.5 million, or $0.43 per diluted share, in Core Funds from Operations that was earned during the second quarter of 2009. Adjusted FFO (AFFO) in the second quarter totaled $52.0 million, or $0.30 per diluted share, as compared to $59.4 million, or $0.38 per diluted share, in the second quarter of 2009.
Revenues for the quarter ended June 30, 2010 totaled $145.2 million compared to $148.0 million in the prior year period. Property operating expenses declined by 23 basis points compared to the second quarter of 2009, and general and administrative expenses remained in line with the second quarter of 2009. Same store net operating income on a cash basis was $87.6 million, down 1.9 percent from $89.3 million in the prior year period, largely attributable to a partial lease expiration and a rent abatement on a recently executed renewal lease, both in Chicago.
Leasing Update
During the second quarter of 2010, the Company executed approximately 557,000 square feet of office leases, the majority of which were completed in the Boston and Dallas markets. Roughly 377,000 square feet or 68 percent were renewals and 180,000 or 32 percent were new leases or lease expansions with existing tenants. On June 30, 2010, the Company’s office portfolio was 89.8 percent leased with a weighted average lease term remaining of 6.0 years.
The Company is actively managing its upcoming lease expirations including several large 2011 lease expirations. As previously announced, Piedmont has entered into a binding purchase and sale agreement to sell 111 Sylvan Avenue, the property with the largest 2010 expiration, and has also recently secured the renewal of State Street Bank at 1200 Crown Colony Drive, one of the largest 2011 expirations. Exclusive of the 111 Sylvan Avenue expiration, as of June 30, 2010, the Company had roughly 620,000 square feet (or 3.1 percent of rentable square footage of its office portfolio) due to expire during the remainder of 2010, with the majority of those expirations scheduled to occur towards the end of the year.
Balance Sheet and Capital Markets Activities
As of June 30, 2010, Piedmont’s total gross real estate assets were $4.5 billion with total debt of $1.4 billion. The Company’s total debt-to-gross assets ratio at the end of the quarter was 26.7 percent and its net debt (total debt less cash and cash equivalents)-to-core EBITDA ratio was 3.9 times. The Company’s fixed charge coverage ratio was 4.5 times. As of June 30, 2010, Piedmont had cash and capacity on its unsecured credit line of approximately $567 million and

no debt maturities in 2010. During the quarter, the one-year extension on Piedmont’s $250 million unsecured term loan became effective, as did the swaps that the Company entered into for the extension period of the loan which effectively fix the rate on this debt at 2.36% for one year.
Subsequent Event
On August 10, 2010, Piedmont entered into a binding contract to purchase two eight-story office buildings comprised of approximately 384,000 rentable square feet located in a suburb of Minneapolis, MN (the “Meridian Crossings Buildings”). The purchase price of the Meridian Crossings Buildings is expected to be approximately $66 million, plus closing costs. The Meridian Crossings Buildings, which were completed in 1997 and 1998, are primarily leased to US Bancorp, an existing tenant within the Piedmont portfolio. The two buildings combined are approximately 96% leased. The transaction is expected to close early in the fourth quarter of 2010.
Guidance for 2010
Excluding the impairment charge related to the planned disposition set forth above, the Company reaffirms financial guidance for full-year 2010 based on management’s expectations as follows:

 	  	Low	  	 	  	High	
Net Income (excluding the $9.6 million impairment charge)	  	$	117	  	–	  	$124 million	
Add: Depreciation & Amortization	  	$	152	  	–	  	$154 million	
Core Funds from Operations (excludes impairment charges)	  	$	269	  	–	  	$278 million	
Core FFO per diluted share (excludes impairment charges)	  	$	1.56	  	–	  	$1.62	
Note that individual quarters may fluctuate on both a cash and accrual basis due to timing of repairs and maintenance, capital expenditures and one-time revenue or expense events. In addition, the Company’s guidance is based on information available to management as of the date of this release.
Non-GAAP Financial Measures
This release contains certain supplemental non-GAAP financial measures such as FFO, AFFO, Core FFO, Same store net operating income, and Core EBITDA. See below for definitions and reconciliations of these metrics to their most comparable GAAP metric.

Conference Call Information
Piedmont has scheduled a conference call and an audio webcast for Wednesday, August 11th, 2010 at 10:00 am Eastern Time. Dial-in numbers are (877) 407-9039 for participants in the United States and (201) 689-8470 for international participants. The conference identification number is 353008. The live audio webcast of the call may be accessed on the Company’s website at www.piedmontreit.com in the Investor Relations section. A replay of the conference call will be available until Wednesday, August 25, 2010, and can be accessed by dialing (877) 660-6853, or (201) 612-7415 for international participants, followed by account number 3055 and the conference identification number, 353008. A webcast replay will also be available after the conference call in the Investor Relations section of the Company’s website.
Supplemental Information
Quarterly Supplemental Information as of and for the three and six months ended June 30, 2010 can be accessed on the Company’s website under the Investor Relations section at www.piedmontreit.com.
About Piedmont Office Realty Trust
Piedmont Office Realty Trust, Inc. is a fully-integrated and self-managed real estate investment trust (“REIT”) specializing in the acquisition, ownership, management, development and disposition of primarily high-quality Class A office buildings located predominately in large U.S. office markets and leased principally to high-credit-quality tenants. Since its first acquisition in 1998, the Company has acquired $5.5 billion of office and industrial properties. Rated as an investment-grade company by Standard & Poor’s and Moody’s, the Company has maintained a low-leverage strategy while acquiring its properties.
Forward Looking Statements
Certain statements contained in this press release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We intend for all such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, as applicable. Such information is subject to certain risks and uncertainties, as well as known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of our performance in future periods. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “continue” or similar words or phrases that are predictions of future events or trends and which do not relate solely to historical matters. Examples of such statements in this press release include the quality of the Company’s assets and balance sheet; the strength of the Company’s leasing portfolio and lease renewal activities; the consummation

of the transaction to sell 111 Sylvan Avenue; the consummation of the transaction to purchase Meridian Crossings; and the Company’s anticipated net income, depreciation and amortization, Core FFO, and Core FFO per share (diluted) for the year ending December 31, 2010.
The following are some of the factors that could cause the Company’s actual results and its expectations to differ materially from those described in the Company’s forward-looking statements: the Company’s ability to successfully identify and consummate suitable acquisitions; current adverse market and economic conditions; lease terminations or lease defaults, particularly by one of the Company’s large lead tenants; the impact of competition on the Company’s efforts to renew existing leases or re-let space; changes in the economies and other conditions of the office market in general and of the specific markets in which the Company operates; economic and regulatory changes; additional risks and costs associated with directly managing properties occupied by government tenants; adverse market and economic conditions and related impairments to the Company’s real estate assets and other intangible assets; the success of the Company’s real estate strategies and investment objectives; availability of financing; costs of complying with governmental laws and regulations; uncertainties associated with environmental and other regulatory matters; the Company’s ability to continue to qualify as a REIT under the Internal Revenue Code; and other factors detailed in our most recent Annual Report on Form 10-K and other documents we file with the Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. We cannot guarantee the accuracy of any such forward-looking statements contained in this press release, and we do not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
CONTACT:
Piedmont Office Realty Trust
Eddie Guilbert
770-418-8592
research.analysts@piedmontreit.com
Investor Relations
800-557-4830
investor.services@piedmontreit.com
ICR Inc.
Evelyn Infurna
203-682-8346
Evelyn.infurna@icrinc.com

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

 
 	 	 	 	 	 	 	 	 	
 	  	June 30, 2010	 	 	December 31, 2009	 	
Assets:	  	 	 	 	 	 	 	 	
Real estate assets, at cost:	  	 	 	 	 	 	 	 	
Land	  	$	641,073	  	 	$	641,073	  	
Buildings and improvements	  	 	3,612,914	  	 	 	3,600,406	  	
Buildings and improvements, accumulated depreciation	  	 	(702,867	) 	 	 	(653,839	) 	
Intangible lease asset	  	 	224,532	  	 	 	243,312	  	
Intangible lease asset, accumulated amortization	  	 	(140,804	) 	 	 	(147,043	) 	
Construction in progress	  	 	14,909	  	 	 	17,059	  	
Real estate assets held for sale,net	  	 	55,000	  	 	 	62,559	  	
 	  	 	 	 	 	 	 	 	
Total real estate assets	  	 	3,704,757	  	 	 	3,763,527	  	
 	 	 	
Investment in unconsolidated joint ventures	  	 	43,005	  	 	 	43,940	  	
Cash and cash equivalents	  	 	81,066	  	 	 	10,004	  	
Tenant receivables, net of allowance for doubtful accounts	  	 	30,986	  	 	 	33,071	  	
Straight line rent receivable	  	 	96,750	  	 	 	95,016	  	
Notes receivable	  	 	60,101	  	 	 	58,739	  	
Due from unconsolidated joint ventures	  	 	1,124	  	 	 	1,083	  	
Prepaid expenses and other assets	  	 	24,866	  	 	 	21,456	  	
Goodwill	  	 	180,097	  	 	 	180,097	  	
Deferred financing costs, less accumulated amortization	  	 	6,467	  	 	 	7,205	  	
Deferred lease costs, less accumulated amortization	  	 	176,120	  	 	 	180,832	  	
Other assets held for sale	  	 	162	  	 	 	375	  	
 	  	 	 	 	 	 	 	 	
Total assets	  	$	4,405,501	  	 	$	4,395,345	  	

Liabilities:	  	 	 	 	 	 	 	 	
Lines of credit and notes payable	  	$	1,402,525	  	 	$	1,516,525	  	
Accounts payable, accrued expenses, and accrued capital expenditures	  	 	99,819	  	 	 	97,747	  	
Deferred income	  	 	33,916	  	 	 	34,506	  	
Intangible lease liabilities, less accumulated amortization	  	 	54,730	  	 	 	60,655	  	
Interest rate swap	  	 	742	  	 	 	3,866	  	
Other liabilities held for sale	  	 	2,546	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	
Total liabilities	  	 	1,594,278	  	 	 	1,713,299	  	
 	 	 	
Redeemable common stock	  	 	—  	  	 	 	75,164	  	
 	 	 	
Stockholders’ equity:	  	 	 	 	 	 	 	 	
Class A common stock	  	 	536	  	 	 	397	  	
Class B-1 common stock	  	 	397	  	 	 	397	  	
Class B-2 common stock	  	 	397	  	 	 	397	  	
Class B-3 common stock	  	 	397	  	 	 	398	  	
Additional paid in capital	  	 	3,659,910	  	 	 	3,477,168	  	
Cumulative distributions in excess of earnings	  	 	(855,631	) 	 	 	(798,561	) 	
Redeemable common stock	  	 	—  	  	 	 	(75,164	) 	
Other comprehensive loss	  	 	(742	) 	 	 	(3,866	) 	
 	  	 	 	 	 	 	 	 	
Piedmont stockholders’ equity	  	 	2,805,264	  	 	 	2,601,166	  	
Non-controlling interest	  	 	5,959	  	 	 	5,716	  	
 	  	 	 	 	 	 	 	 	
Total stockholders’ equity	  	 	2,811,223	  	 	 	2,606,882	  	
 	  	 	 	 	 	 	 	 	
Total liabilities, redeemable common stock and stockholders’ equity	  	$	4,405,501	  	 	$	4,395,345	  	

Net Debt (Total debt less cash and cash equivalents)	  	$	1,321,459	  	 	$	1,506,521	  	
Total Gross Assets (1)	  	$	5,249,172	  	 	$	5,196,227	  	
 
(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	 	 	Six Months Ended	 	
 	  	6/30/2010	 	 	6/30/2009	 	 	6/30/2010	 	 	6/30/2009	 	
Revenues:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental income	  	$	110,623	  	 	$	110,400	  	 	$	221,134	  	 	$	221,752	  	
Tenant reimbursements	  	 	33,374	  	 	 	36,059	  	 	 	68,458	  	 	 	76,164	  	
Property management fee revenue	  	 	705	  	 	 	744	  	 	 	1,458	  	 	 	1,441	  	
Other rental income	  	 	479	  	 	 	782	  	 	 	975	  	 	 	781	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	145,181	  	 	 	147,985	  	 	 	292,025	  	 	 	300,138	  	
 	 	 	 	 	
Operating expenses:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property operating costs	  	 	55,497	  	 	 	55,626	  	 	 	110,858	  	 	 	115,716	  	
Depreciation	  	 	25,584	  	 	 	26,172	  	 	 	51,275	  	 	 	51,412	  	
Amortization	  	 	11,004	  	 	 	13,695	  	 	 	22,390	  	 	 	27,136	  	
General and administrative	  	 	7,952	  	 	 	8,077	  	 	 	14,572	  	 	 	15,441	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses	  	 	100,037	  	 	 	103,570	  	 	 	199,095	  	 	 	209,705	  	

Real estate operating income	  	 	45,144	  	 	 	44,415	  	 	 	92,930	  	 	 	90,433	  	
 	 	 	 	 	
Other income (expense):	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest expense	  	 	(18,933	) 	 	 	(19,394	) 	 	 	(38,024	) 	 	 	(38,736	) 	
Interest and other income	  	 	1,036	  	 	 	1,147	  	 	 	2,005	  	 	 	1,809	  	
Equity in income of unconsolidated joint ventures	  	 	647	  	 	 	754	  	 	 	1,384	  	 	 	1,417	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total other income (expense)	  	 	(17,250	) 	 	 	(17,493	) 	 	 	(34,635	) 	 	 	(35,510	) 	

Income from continuing operations	  	 	27,894	  	 	 	26,922	  	 	 	58,295	  	 	 	54,923	  	
 	 	 	 	 	
Operating income, excluding impairment loss	  	 	1,454	  	 	 	1,174	  	 	 	2,639	  	 	 	2,329	  	
Impairment loss	  	 	(9,587	) 	 	 	—  	  	 	 	(9,587	) 	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Discontinued operations	  	 	(8,133	) 	 	 	1,174	  	 	 	(6,948	) 	 	 	2,329	  	

Net income	  	 	19,761	  	 	 	28,096	  	 	 	51,347	  	 	 	57,252	  	
 	 	 	 	 	
Less: Net income attributable to noncontrolling interest	  	 	(125	) 	 	 	(120	) 	 	 	(251	) 	 	 	(238	) 	

Net income attributable to Piedmont	  	$	19,636	  	 	$	27,976	  	 	$	51,096	  	 	$	57,014	  	

Weighted average common shares outstanding - diluted	  	 	172,718	  	 	 	158,304	  	 	 	168,912	  	 	 	159,047	  	
 	 	 	 	 	
Net income per share available to common stockholders - basic and diluted	  	$	0.11	  	 	$	0.18	  	 	$	0.30	  	 	$	0.36	  	

Reconciliation of Net Income Excluding Impairment Charge:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	
Net income attributable to Piedmont	  	$	19,636	  	 	$	27,976	  	 	 	 	 	 	 	 	 	
Impairment loss	  	 	9,587	  	 	 	—  	  	 	 	 	 	 	 	 	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income available to stockholders, exclusive of impairment charge	  	$	29,223	  	 	$	27,976	  	 	 	 	 	 	 	 	 	

Weighted average common shares outstanding - diluted	  	 	172,718	  	 	 	158,304	  	 	 	 	 	 	 	 	 	
 	 	 	 	 	
Net income per share available to stockholders, exclusive of impairment charge - basic and diluted	  	$	0.17	  	 	$	0.18	  	 	 	 	 	 	 	 	 	

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	 	Six Months Ended	 	
 	  	6/30/2010	 	 	6/30/2009	 	 	6/30/2010	 	 	6/30/2009	 	
Net income attributable to Piedmont	  	$	19,636	  	 	$	27,976	  	 	$	51,096	  	 	$	57,014	  	
 	 	 	 	 	
Depreciation (1) (2)	  	 	25,872	  	 	 	26,773	  	 	 	52,122	  	 	 	52,611	  	
Amortization (1)	  	 	11,104	  	 	 	13,797	  	 	 	22,592	  	 	 	27,339	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Funds from operations	  	 	56,612	  	 	 	68,546	  	 	 	125,810	  	 	 	136,964	  	
 	 	 	 	 	
Impairment loss on real estate assets	  	 	9,587	  	 	 	—  	  	 	 	9,587	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core funds from operations	  	 	66,199	  	 	 	68,546	  	 	 	135,397	  	 	 	136,964	  	
 	 	 	 	 	
Depreciation of non real estate assets	  	 	178	  	 	 	154	  	 	 	357	  	 	 	306	  	
Stock-based and other non-cash compensation expense	  	 	711	  	 	 	831	  	 	 	1,364	  	 	 	1,835	  	
Loss on extinguishment of debt	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
Deferred financing cost amortization	  	 	696	  	 	 	685	  	 	 	1,392	  	 	 	1,394	  	
Straight-line effects of lease revenue (1)	  	 	(784	) 	 	 	(1,227	) 	 	 	289	  	 	 	1,469	  	
Amortization of lease-related intangibles (1)	  	 	(1,525	) 	 	 	(1,223	) 	 	 	(2,951	) 	 	 	(2,453	) 	
Income from amortization of discount on purchase of mezzanine loans	  	 	(694	) 	 	 	(929	) 	 	 	(1,362	) 	 	 	(1,296	) 	
Non-incremental capital expenditures(3)	  	 	(12,752	) 	 	 	(7,394	) 	 	 	(21,718	) 	 	 	(18,804	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted funds from operations	  	$	52,029	  	 	$	59,443	  	 	$	112,768	  	 	$	119,415	  	

Weighted average common shares outstanding - diluted	  	 	172,718	  	 	 	158,304	  	 	 	168,912	  	 	 	159,047	  	
 	 	 	 	 	
Funds from operations per share (diluted)	  	$	0.33	  	 	$	0.43	  	 	$	0.74	  	 	$	0.86	  	
Core funds from operations per share (diluted)	  	$	0.38	  	 	$	0.43	  	 	$	0.80	  	 	$	0.86	  	
Adjusted funds from operations per share (diluted)	  	$	0.30	  	 	$	0.38	  	 	$	0.67	  	 	$	0.75	  	
 
(1)	Includes adjustments for wholly-owned properties and for our proportionate ownership in unconsolidated joint ventures.	
(2)	Excludes depreciation of non real estate assets.	
(3)	Capital expenditures of a recurring nature related to tenant improvements and leasing commissions that do not incrementally enhance the underlying assets’ income generating capacity. We exclude first generation tenant improvements and leasing commissions from this measure.	
*Definitions
Funds From Operations (“FFO”): FFO is calculated in accordance with the current National Association of Real Estate Investment Trusts (“NAREIT”) definition. NAREIT currently defines FFO as net income (computed in accordance with GAAP), excluding gains or losses from sales of property plus depreciation and amortization on real estate assets, and after the same adjustments for unconsolidated partnerships and joint ventures. Such factors can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates. FFO may provide valuable comparisons of operating performance between periods and with other REITs. FFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating performance to net income. We believe that FFO is a beneficial indicator of the performance of an equity REIT. However, other REITs may not define FFO in accordance with the NAREIT definition, or may interpret the current NAREIT definition differently than we do; therefore, our computation of FFO may not be comparable to that of such other REITs.
Core Funds From Operations (“Core FFO”): We calculate Core FFO by starting with FFO, as defined by NAREIT, and adjust for certain non-recurring items such as impairment losses and other extraordinary items. Such items create significant earnings volatility. We believe Core FFO provides a meaningful measure of our operating performance and more predictability regarding future earnings potential. Core FFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating performance to net income; therefore, it should not be compared to other REITs’ equivalent to Core FFO.
Adjusted Funds From Operations (“AFFO”): In addition to FFO and Core FFO, we present AFFO. We calculate this measure by deducting from Core FFO non-incremental capital expenditures and adding back non-cash items including non-real estate depreciation, straight lined rents and fair value lease revenue, non-cash components of interest expense and compensation expense, and making similar adjustments for unconsolidated partnerships and joint ventures. Although AFFO may not be comparable to that of other REITs, we believe it provides a meaningful indicator of our ability to fund cash needs and to make cash distributions to equity owners. AFFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating performance to net income, as an alternative to net cash flows from operating activities or as a measure of our liquidity.

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended June 30,	 	 	Six Months Ended June 30,	 	
 	  	2010	 	 	2009	 	 	2010	 	 	2009	 	
Net income attributable to Piedmont	  	$	19,636	  	 	$	27,976	  	 	$	51,096	  	 	$	57,014	  	
 	 	 	 	 	
Non-controlling interest	  	 	125	  	 	 	120	  	 	 	251	  	 	 	238	  	
Interest Expense	  	 	18,933	  	 	 	19,394	  	 	 	38,024	  	 	 	38,736	  	
Depreciation	  	 	26,050	  	 	 	26,927	  	 	 	52,479	  	 	 	52,917	  	
Amortization	  	 	11,104	  	 	 	13,797	  	 	 	22,592	  	 	 	27,339	  	
Impairment loss on real estate assets	  	 	9,587	  	 	 	—  	  	 	 	9,587	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core EBITDA*	  	 	85,435	  	 	 	88,214	  	 	 	174,029	  	 	 	176,244	  	
 	 	 	 	 	
General & administrative expenses	  	 	7,993	  	 	 	8,102	  	 	 	14,689	  	 	 	15,505	  	
Management fee revenue	  	 	(705	) 	 	 	(744	) 	 	 	(1,458	) 	 	 	(1,441	) 	
Interest and other income	  	 	(1,036	) 	 	 	(1,147	) 	 	 	(2,005	) 	 	 	(1,809	) 	
Lease termination income	  	 	(479	) 	 	 	(782	) 	 	 	(975	) 	 	 	(781	) 	
Lease termination expense - straight line rent & acquisition intangibles write-offs	  	 	679	  	 	 	174	  	 	 	746	  	 	 	174	  	
Straight line rent adjustment	  	 	(1,462	) 	 	 	(1,378	) 	 	 	(457	) 	 	 	1,318	  	
Net effect of amortization of below-market in-place lease intangibles	  	 	(1,525	) 	 	 	(1,247	) 	 	 	(2,952	) 	 	 	(2,477	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core net operating income (Cash basis)*	  	 	88,900	  	 	 	91,192	  	 	 	181,617	  	 	 	186,733	  	
 	 	 	 	 	
Acquisitions	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
Industrial Properties	  	 	(91	) 	 	 	(642	) 	 	 	(365	) 	 	 	(1,282	) 	
Unconsolidated joint ventures	  	 	(1,187	) 	 	 	(1,275	) 	 	 	(2,453	) 	 	 	(2,467	) 	

Same Store NOI*	  	$	87,622	  	 	$	89,275	  	 	$	178,799	  	 	$	182,984	  	

Year over year change in same store NOI	  	 	-1.9	% 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	
Fixed Charge Coverage Ratio (Core EBITDA/ Interest Expense)(1)	  	 	4.5	  	 	 	 	 	 	 	 	 	 	 	 	 	
Annualized Core EBITDA (Core EBITDA x 4)	  	$	341,740	  	 	 	 	 	 	 	 	 	 	 	 	 	
 
(1)	Piedmont had no capitalized interest, principal amortization or preferred dividends for any of the periods presented.	
*Definitions
Core EBITDA: Core EBITDA is defined as net income before interest, taxes, depreciation and amortization as defined above and incrementally adding back any impairment losses and other extraordinary items. We do not include impairment losses in this measure because we feel these types of losses create volatility in our earnings and make it difficult to determine the earnings generated by our ongoing business. We believe Core EBITDA is a better measure of our liquidity. Core EBITDA is a non-GAAP financial measure and should not be viewed as an alternative measurement of cash flows from operating activities or liquidity. Other REITs may calculate Core EBITDA differently and our calculation should not be compared to that of other REITs.
Core Net Operating Income (“Core NOI”): Core NOI is defined as income from property operations with the add-back of corporate general and administrative expense, depreciation and amortization, and casualty and impairment losses and the deduction of income associated with lease terminations. We present this measure on a cash basis which eliminates the effects of straight lined rents and fair value lease revenue. The company uses this measure to assess its operating results and believes it is important in assessing operating performance. Core NOI is a non-GAAP measure which does not have any standard meaning prescribed by GAAP and therefore may not be comparable to similar measures presented by other companies.
Same Store NOI: Same Store NOI is calculated as the Core NOI attributable to the properties owned or placed in service during the entire span of the current and prior year. Same Store NOI excludes amounts attributable to industrial properties. We present this measure on a cash basis which eliminates the effects of straight lined rents and fair value lease revenue. We believe Same Store NOI is an important measure of comparison of our stabilized properties’ operating performance. Other REITs may calculate Same Store NOI differently and our calculation should not be compared to that of other REITs.

Exhibit 99.2

Quarterly Supplemental Information
June 30, 2010

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

Piedmont Office Realty Trust, Inc.
Quarterly Supplemental Information
Index

 
 	 	 	
 	  	Page	
Introduction	  	 	
Corporate Data	  	3	
Investor Information	  	4	
Financial Highlights	  	5-7	
Key Performance Indicators	  	8	
 	 	
Financials	  	 	
Balance Sheet	  	9	
Income Statements	  	10-11	
Funds From Operations / Adjusted Funds From Operations	  	12	
Same Store Analysis	  	13-14	
Capitalization Analysis	  	15	
Debt Summary	  	16	
Debt Detail	  	17	
Debt Analysis	  	18	
 	 	
Operational & Portfolio Information - Office Investments	  	 	
Tenant Diversification	  	19	
Tenant Credit & Lease Distribution Information	  	20	
Leasing Activity	  	21	
Lease Expiration Schedule	  	22	
Annual Lease Expirations	  	23	
Capital Expenditures & Commitments	  	24	
Contractual Tenant Improvements & Leasing Commissions	  	25	
Geographic Diversification	  	26	
Industry Diversification	  	27	
 	 	
Other Investments	  	 	
Other Investments Detail	  	28	
 	 	
Supporting Information	  	 	
Definitions	  	29-30	
Research Coverage	  	31	
Non-GAAP Reconciliations	  	32-35	
Risks, Uncertainties and Limitations	  	36	
Please refer to page 36 for a discussion of important risks related to the business of Piedmont Office Realty Trust, as well as an investment in its securities, including risks that could cause actual results and events to differ materially from results and events referred to in the forward-looking information. Considering these risks, uncertainties, assumptions, and limitations, the forward-looking events contained in this supplemental reporting package might not occur.
Certain prior period amounts have been reclassified to conform to the current period financial statement presentation. In addition, many of the schedules herein contain rounding to the nearest thousands or millions and, therefore, the schedules may not total due to this rounding convention.

Piedmont Office Realty Trust, Inc.
Corporate Data

Piedmont Office Realty Trust, Inc. (“Piedmont” or the “Company”) (NYSE: PDM) is a fully-integrated and self-managed real estate investment trust (“REIT”) specializing in the acquisition, ownership, management, development and disposition of primarily high-quality Class A office buildings located predominately in large U.S. office markets and leased principally to high-credit-quality tenants. Since its first acquisition in 1998, the Company has acquired approximately $5.5 billion of office and industrial properties (inclusive of joint ventures). Rated as an investment-grade company by Standard & Poor’s and Moody’s, Piedmont has maintained a low-leverage strategy while acquiring its properties. Approximately 87% of our Annualized Lease Revenue (“ALR”) (1)  is derived from our office properties located within the ten largest U.S. office markets, including Chicago, Washington, D.C., the New York metropolitan area, Boston and greater Los Angeles.
This data supplements the information provided in our reports filed with the Securities and Exchange Commission.

 	  	As of
June 30, 2010	 	 	As of
December 31, 2009	 	
Number of properties (2)	  	 	73	  	 	 	73	  	
Rentable square footage (in thousands) (2)	  	 	20,274	  	 	 	20,229	  	
Percent leased (3)	  	 	89.8	% 	 	 	90.1	% 	
Capitalization (in thousands):	  	 	 	 	 	 	 	 	
Total debt	  	$	1,402,525	  	 	$	1,516,525	  	
Equity market capitalization (4)	  	$	3,233,893	  	 	$	N/A	  	
Total market capitalization (4)	  	$	4,636,418	  	 	$	N/A	  	
Debt / Total market capitalization (4)	  	 	30.3	% 	 	 	N/A	  	
Common stock data	  	 	 	 	 	 	 	 	
High closing price during quarter(4)	  	$	20.36	  	 	$	N/A	  	
Low closing price during quarter(4)	  	$	17.90	  	 	$	N/A	  	
Closing price of Class A common stock at period end (4)	  	$	18.73	  	 	$	N/A	  	
Weighted average fully diluted shares outstanding (in thousands) (5)	  	 	168,912	  	 	 	158,581	  	
Shares of common stock issued and outstanding (in thousands)	  	 	172,658	  	 	 	158,917	  	
Rating / outlook	  	 	 	 	 	 	 	 	
Standard & Poor’s	  	 	BBB / Stable	  	 	 	BBB / Stable	  	
Moody’s	  	 	Baa2 / Stable	  	 	 	Baa3 / Positive	  	
Employees	  	 	108	  	 	 	107	  	
 
(1)	The definition for Annualized Lease Revenue can be found on page 29.	
(2)	Our office portfolio currently consists of 73 properties (exclusive of our equity interests in eight properties owned through unconsolidated joint ventures and our two industrial properties).	
(3)	Calculated as leased square footage on June 30, 2010 plus square footage associated with new leases signed for currently vacant spaces divided by total rentable square footage, expressed as a percentage. This measure is presented for our 73 office properties and excludes industrial and unconsolidated joint venture properties.	
(4)	Our Class A common stock was listed on the New York Stock Exchange on February 10, 2010; there is no market data as of December 31, 2009. Our Class B-1, Class B-2, and Class B-3 common stock (collectively, our “Class B common stock”) are not listed on a national securities exchange and there is no established market for such shares. We have used the closing price of the Class A common stock at the relevant period end for the purposes of the calculations regarding market capitalization herein.	
(5)	Weighted average fully diluted shares outstanding are presented on a year-to-date basis for each period.	
 
3

Piedmont Office Realty Trust, Inc.
Investor Information

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

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

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

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

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

On January 22, 2010, we filed an amendment to our charter to effect a recapitalization of our common stock as described further in our Securities and Exchange Commission (“SEC”) filings. Upon the effectiveness of the recapitalization, each share of our outstanding common stock converted automatically into: (a) 1/12th of a share of our Class A common stock; plus (b) 1/12th of a share of our Class B-1 common stock; plus (c) 1/12th of a share of our Class B-2 common stock; plus (d) 1/12th of a share of our Class B-3 common stock. The recapitalization had the effect of a one-for-three reverse stock split. Prior period share and per share information in this report has been restated to reflect this recapitalization. Class B-1 stock converts automatically into Class A stock on August 9, 2010; Class B-2 stock converts into Class A stock on November 7, 2010; and Class B-3 stock converts to Class A stock on January 30, 2011.
Financial Results (1)
 
 	-	 	Funds from operations (FFO) for the quarter ended June 30, 2010 was $56.6M, or $0.33 per share (diluted), compared to $68.5M, or $0.43 per share (diluted), for the same quarter in 2009. FFO for the six months ended June 30, 2010 was $125.8M, or $0.74 per share (diluted), compared to $137.0M, or $0.86 per share (diluted), for the same period in 2009. The decrease in FFO from 2009 to 2010 was primarily due to the recognition of a $9.6M impairment charge on 111 Sylvan Avenue to adjust the asset to fair value. 111 Sylvan Avenue is under a binding contract for sale as further described below.	
 
 	-	 	Core funds from operations (Core FFO) for the quarter ended June 30, 2010 was in line with expectations and was $66.2M, or $0.38 per share (diluted), compared to $68.5M, or $0.43 per share (diluted), for the same quarter in 2009. Core FFO for the six months ended June 30, 2010 was $135.4M, or $0.80 per share (diluted), compared to $137.0M, or $0.86 per share (diluted), for the same period in 2009. The decrease in Core FFO per share from 2009 to 2010 was primarily due to the dilutive effect of the 13.8 million shares of Class A common stock issued in February 2010; lower tenant reimbursements also contributed to the decrease.	
 
 	-	 	Adjusted funds from operations (AFFO) for the quarter ended June 30, 2010 was $52.0M, or $0.30 per share (diluted), compared to $59.4M, or $0.38 per share (diluted), for the same quarter in 2009. AFFO for the six months ended June 30, 2010 was $112.8M, or $0.67 per share (diluted), compared to $119.4M, or $0.75 per share (diluted), for the same period in 2009. The decrease in AFFO for the quarter ended June 30, 2010 as compared to that of 2009 was primarily due to increased capital expenditures in 2010 associated with new leases. The decrease in AFFO for the six months ended June 30, 2010 as compared to that of 2009 was primarily due to increased capital expenditures and lower straight line rent adjustments. The AFFO per share results are also lower due to the dilutive effect of the 13.8 million shares of Class A common stock issued in February 2010.	
 
 	-	 	During the quarter ended June 30, 2010, the company paid to stockholders a quarterly dividend in the amount of $0.315 per share for all classes of common stock. The Company’s dividend payout percentage for the six months ended June 30, 2010 was 79.9% of Core FFO and 95.9% of AFFO.	
Operations
 
 	-	 	On a square footage basis, our portfolio was 89.8% leased as of June 30, 2010 as compared to 89.6% and 90.1% at March 31, 2010 and December 31, 2009, respectively. The increase in leased square footage during the quarter is primarily related to new leasing in the Dallas market. The decrease in leased square footage since the prior year end is primarily due to 99,000 square feet being vacated in January 2010 by Kirkland & Ellis in Chicago.	
 
 	-	 	The weighted average remaining lease term of our portfolio was 6.0 years(2) as of June 30, 2010 as compared to 5.9 years at December 31, 2009.	
 
 	-	 	As noted in our December 31, 2009 Quarterly Supplemental Information, 6.8% of our Annualized Lease Revenue was set to expire in 2010 and a majority of this expiration was to take place in the fourth quarter. During the three months ended June 30, 2010, leasing activity was strong with the company completing over 870,000 square feet of leasing. From an office leasing perspective, we executed renewal leases for 377,000 square feet and new tenant leases for 180,000 square feet, bringing the year-to-date total office leasing activity to 738,000 square feet, with an average committed capital cost of $3.13 per square foot per year of lease term. From an industrial leasing perspective, we executed new tenant leases totaling 313,000 square feet, bringing the year-to-date total industrial leasing activity to 487,000 square feet with an average committed capital cost of $0.21 per square foot per year of lease term.	
 
(1)	FFO, Core FFO and AFFO are supplemental non-GAAP financial measures. See pages 29-30 for definitions of non-GAAP financial measures. See pages 12 and 33 for reconciliations of FFO, Core FFO and AFFO to Net Income.	
(2)	Remaining lease term (after taking into account leases which had been executed but not commenced as of June 30, 2010) is weighted based on Annualized Lease Revenue, as defined on page 29.	
 
5

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

 
 	-	 	During the six months ended June 30, 2010, we retained tenants for 78% of the square footage associated with expiring leases, as compared to 78% for the year ended December 31, 2009.	
 
 	-	 	During the three months ended June 30, 2010, we executed five office leases greater than 20,000 SF. Please see information on those leases in the following chart.	

Tenant Name	  	Property	  	Property Location	  	Square Feet
Leased	  	Expiration Year	  	Lease Type	
State Street Bank	  	1200 Crown Colony Drive	  	Quincy, MA	  	234,668	  	2021	  	Renewal	
Advanced Micro Devices	  	90 Central Street	  	Boxborough, MA	  	132,857	  	2015	  	Renewal / Expansion	
Oracle America, Inc.	  	6031 Connection Drive	  	Irving, TX	  	55,760	  	2017	  	New	
Carr Workplaces	  	Aon Center	  	Chicago, IL	  	26,914	  	2022	  	New	
American Family Mutual     Insurance Company	  	Eastpointe Corporate Center	  	Issaquah, WA	  	21,739	  	2015	  	New	
Leasing Update
 
 	-	 	Five leases were scheduled to expire in 2010 or 2011 that contribute greater than 1% of Annualized Lease Revenue. Information regarding the leasing status of the spaces associated with those leases is as follows:	

Tenant Name	  	Property	  	Property Location	  	Square
Footage	  	Percentage of Annualized
Lease Revenue (%)	 	 	Expiration (1)	  	Leasing Status	
Citicorp	  	111 Sylvan Avenue	  	Englewood Cliffs, NJ	  	409,604	  	1.2	% 	 	Q4 2010	  	Discussions with the current tenant for renewal of a portion of the space leased were terminated because the property is under contract to be sold in December 2010.	
 	 	 	 	 	 	 	
State Street Bank	  	1200 Crown Colony Drive	  	Quincy, MA	  	234,668	  	1.6	% 	 	Q1 2011	  	Lease renewed with tenant through 2021.	
 	 	 	 	 	 	 	
U.S. Government, Comptroller of the Currency	  	One Independence Square	  	Washington, D.C.	  	322,984	  	3.1	% 	 	Q2 2011	  	In discussions with the current tenant for a renewal of the entire space leased by the tenant.	
 	 	 	 	 	 	 	
Zurich American Insurance Company	  	Windy Point II	  	Schaumburg, IL	  	300,034	  	1.8	% 	 	Q3 2011	  	Space has been substantially sublet by the tenant. In discussions with sublessees for direct leases in addition to actively marketing the space for lease.	
 	 	 	 	 	 	 	
Kirkland & Ellis	  	Aon Center	  	Chicago, IL	  	331,887	  	1.8	% 	 	Q4 2011	  	Kirkland & Ellis is vacating; 260,641 SF of the space associated with their lease has been relet to KPMG beginning in August 2012.	
 
(1)	The lease expiration date presented is that of the majority of the space leased to the tenant at the building.	
 
6

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

Financing and Capital Activity
 
 	-	 	As of June 30, 2010, our ratio of debt to total market capitalization was 30.3%; our ratio of debt to gross real estate assets was 30.8%; and our ratio of debt to total gross assets was 26.7%.	
 
 	-	 	During the second quarter of 2010, the Company did not acquire or sell any properties. However, on May 5, 2010, Piedmont entered into a binding contract to sell the 111 Sylvan Avenue property in Englewood Cliffs, NJ. The purchaser has completed its due diligence study of the asset and its deposit of 10% of the agreed upon purchase price of $55 million is non-refundable. The transaction is scheduled to close in December 2010, which will allow Piedmont to recognize the cash flow of the existing lease with Citicorp through its current expiration in November 2010. Piedmont has reclassified 111 Sylvan Avenue from real estate assets held-for-use to real estate assets held-for-sale as of May 5, 2010. Our operating results for the quarter reflect a $9.6 million impairment charge as a result of adjusting the asset to fair value. We now present the results from operations for the asset in discontinued operations.	
 
 	-	 	On May 14, 2010, Piedmont filed a Form S-3 containing a prospectus for a dividend reinvestment plan. Shareholders participating in the reinvestment plan will be able to purchase additional shares of Piedmont at a 2% discount to the then current market price.	
 
 	-	 	On April 9, 2010, Moody’s upgraded Piedmont’s credit rating from Baa3 to Baa2.	
 
 	-	 	The $250 Million Unsecured Term Loan was extended by one year to June 28, 2011. During the first quarter of 2010, Piedmont entered into several swap agreements which effectively fix the interest rate on this loan at 2.36% for the one-year extension period.	
Subsequent Events
 
 	-	 	Piedmont has entered into a binding agreement to purchase Meridian Crossings in suburban Minneapolis, MN. The project is comprised of two buildings totaling approximately 384,000 square feet. The buildings, well located at the intersection of Interstates 35W and 494, were constructed in 1997 and 1998. The primary tenant in the project is U.S. Bancorp, a tenant with which Piedmont has significant existing business relationships. U.S. Bancorp’s lease extends through 2023. Piedmont anticipates completing the purchase of Meridian Crossings in October 2010.	
 
 	-	 	On August 9, 2010, all of Piedmont’s 39.7 million shares of Class B-1 common stock converted to Class A common stock.	
 
 	-	 	On August 10, 2010, the board of directors of Piedmont declared dividends for the third quarter of 2010 in the amount of $0.315 per share on all classes of outstanding common shares of Piedmont to stockholders of record for such shares as of the close of business on September 15, 2010. The dividends are to be paid on September 22, 2010.	
Guidance for 2010
 
 	-	 	The following financial guidance is unchanged for full-year 2010 and is based on management’s expectations at this time:	

 	  	Low	  	High	
Net Income (before the $9.6 million impairment charge)	  	$117	  	-	  	124 million	
Add: Depreciation & Amortization	  	$152	  	-	  	154 million	
Core Funds from Operations (excludes impairment charges)	  	$269	  	-	  	278 million	
Core Funds from Operations per diluted share (excludes impairment charges)	  	$1.56	  	-	  	1.62	
Our $9.6 million charge on the 111 Sylvan Avenue property does not have an impact on our reported Core FFO, but it does impact FFO as originally estimated by roughly $0.055 per share. The opportunity to sell 111 Sylvan Avenue was not contemplated in our original FFO guidance. Note that individual quarters may fluctuate on both a cash and accrual basis due to timing of repairs and maintenance, capital expenditures and one-time revenue or expense events. In addition, the Company’s guidance is based on information available to management as of the date of this supplemental report.
 
7

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

This section includes non-GAAP financial measures, including, but not limited to, Core Earnings Before Interest, Taxes, Depreciation, and Amortization (Core EBITDA), Funds from Operations (FFO), Core Funds from Operations (Core FFO), Adjusted Funds from Operations (AFFO), Same Store NOI, and NOI from Unconsolidated Joint Ventures. Definitions of these non-GAAP measures are provided on pages 29-30 and reconciliations are provided on pages 32-35.

 	  	Three Months Ended	 	
 	  	6/30/2010	 	 	3/31/2010	 	 	12/31/2009	 	 	9/30/2009	 	 	6/30/2009	 	
Selected Operating Data	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Percent leased (1)	  	 	89.8	% 	 	 	89.6	% 	 	 	90.1	% 	 	 	90.1	% 	 	 	90.1	% 	
Rental income	  	$	110,623	  	 	$	110,511	  	 	$	110,405	  	 	$	111,279	  	 	$	110,400	  	
Total revenues	  	$	145,181	  	 	$	146,844	  	 	$	149,423	  	 	$	148,943	  	 	$	147,985	  	
Total operating expenses(2)	  	$	100,037	  	 	$	99,058	  	 	$	106,373	  	 	$	138,705	  	 	$	103,570	  	
Real estate operating income(2)	  	$	45,144	  	 	$	47,786	  	 	$	43,050	  	 	$	10,238	  	 	$	44,415	  	
Impairment losses on real estate assets (3)	  	$	9,587	  	 	$	0	  	 	$	0	  	 	$	37,633	  	 	$	0	  	
Core EBITDA (4)	  	$	85,435	  	 	$	88,592	  	 	$	89,260	  	 	$	90,266	  	 	$	88,214	  	
Core FFO	  	$	66,199	  	 	$	69,197	  	 	$	69,482	  	 	$	70,472	  	 	$	68,546	  	
Core FFO per share - diluted	  	$	0.38	  	 	$	0.42	  	 	$	0.44	  	 	$	0.45	  	 	$	0.43	  	
AFFO (4)	  	$	52,029	  	 	$	60,737	  	 	$	48,511	  	 	$	61,152	  	 	$	59,443	  	
AFFO per share - diluted	  	$	0.30	  	 	$	0.37	  	 	$	0.31	  	 	$	0.39	  	 	$	0.38	  	
Gross dividends	  	$	54,388	  	 	$	53,777	  	 	$	49,733	  	 	$	49,565	  	 	$	49,389	  	
Dividends per share	  	$	0.315	  	 	$	0.315	  	 	$	0.315	  	 	$	0.315	  	 	$	0.315	  	
Selected Balance Sheet Data	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total real estate assets	  	$	3,704,757	  	 	$	3,737,478	  	 	$	3,763,527	  	 	$	3,785,458	  	 	$	3,850,625	  	
Total gross real estate assets	  	$	4,548,428	  	 	$	4,560,219	  	 	$	4,564,409	  	 	$	4,590,995	  	 	$	4,626,300	  	
Total assets	  	$	4,405,501	  	 	$	4,428,410	  	 	$	4,395,345	  	 	$	4,431,851	  	 	$	4,494,484	  	
Net debt (5)	  	$	1,321,459	  	 	$	1,325,531	  	 	$	1,506,521	  	 	$	1,515,186	  	 	$	1,542,996	  	
Total liabilities	  	$	1,594,278	  	 	$	1,584,781	  	 	$	1,713,299	  	 	$	1,743,415	  	 	$	1,761,748	  	
Ratios	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core EBITDA margin(6)	  	 	58.2	% 	 	 	59.7	% 	 	 	59.1	% 	 	 	60.0	% 	 	 	59.0	% 	
 	 	 	 	 	 	
Fixed charge coverage ratio(7)	  	 	4.5	x 	 	 	4.6	x 	 	 	4.6	x 	 	 	4.6	x 	 	 	4.5	x 	
Net debt to core EBITDA (8)	  	 	3.9	x 	 	 	3.7	x 	 	 	4.2	x 	 	 	4.2	x 	 	 	4.4	x 	
 
(1)	Percent leased represents 73 office properties and excludes industrial and unconsolidated joint venture properties. Percent leased decreased in the first quarter of 2010 as compared to the prior period primarily due to Kirkland & Ellis vacating 99,000 square feet at Aon Center in Chicago, IL.	
(2)	Total operating expenses and real estate operating income in the third quarter of 2009 include $35.1 million in impairment charges recognized on three wholly-owned assets.	
(3)	Impairment losses include both wholly owned and unconsolidated joint ventures.	
(4)	Core EBITDA and AFFO have been adjusted to exclude impairments on real estate assets as shown on pages 32 and 33.	
(5)	Net debt is calculated as total debt minus cash and cash equivalents.	
(6)	Core EBITDA margin is calculated as Core EBITDA divided by total revenues.	
(7)	Fixed charge coverage is calculated as Core EBITDA divided by the sum of interest expense, principal amortization, capitalized interest and preferred dividends. We had no capitalized interest, principal amortization or preferred dividends during the three months ended June 30, 2010.	
(8)	Core EBITDA is annualized for the purposes of this calculation.	
 
8

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	June 30, 2010	 	 	March 31, 2010	 	 	December 31, 2009	 	 	September 30, 2009	 	 	June 30, 2009	 	
Assets:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Real estate, at cost:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Land assets	  	$	641,073	  	 	$	641,073	  	 	$	641,073	  	 	$	641,073	  	 	$	648,834	  	
Buildings and improvements	  	 	3,612,914	  	 	 	3,609,608	  	 	 	3,600,406	  	 	 	3,591,403	  	 	 	3,613,440	  	
Buildings and improvements, accumulated depreciation	  	 	(702,867	) 	 	 	(677,499	) 	 	 	(653,839	) 	 	 	(631,120	) 	 	 	(605,215	) 	
Intangible lease asset	  	 	224,532	  	 	 	235,022	  	 	 	243,312	  	 	 	280,087	  	 	 	284,292	  	
Intangible lease asset, accumulated amortization	  	 	(140,804	) 	 	 	(145,242	) 	 	 	(147,043	) 	 	 	(174,417	) 	 	 	(170,460	) 	
Construction in progress	  	 	14,909	  	 	 	12,345	  	 	 	17,059	  	 	 	15,483	  	 	 	16,396	  	
Real estate assets held for sale, net	  	 	55,000	  	 	 	62,171	  	 	 	62,559	  	 	 	62,949	  	 	 	63,338	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total real estate assets	  	 	3,704,757	  	 	 	3,737,478	  	 	 	3,763,527	  	 	 	3,785,458	  	 	 	3,850,625	  	
 	 	 	 	 	 	
Investment in unconsolidated joint ventures	  	 	43,005	  	 	 	43,482	  	 	 	43,940	  	 	 	44,350	  	 	 	47,408	  	
Cash and cash equivalents	  	 	81,066	  	 	 	76,994	  	 	 	10,004	  	 	 	17,339	  	 	 	17,529	  	
Tenant receivables, net of allowance for doubtful accounts	  	 	30,986	  	 	 	33,152	  	 	 	33,071	  	 	 	38,818	  	 	 	32,105	  	
Straight line rent receivable	  	 	96,750	  	 	 	94,906	  	 	 	95,016	  	 	 	92,406	  	 	 	90,537	  	
Notes receivable	  	 	60,101	  	 	 	59,407	  	 	 	58,739	  	 	 	58,523	  	 	 	57,990	  	
Due from unconsolidated joint ventures	  	 	1,124	  	 	 	1,202	  	 	 	1,083	  	 	 	1,072	  	 	 	1,198	  	
Prepaid expenses and other assets	  	 	24,866	  	 	 	18,600	  	 	 	21,456	  	 	 	22,220	  	 	 	20,448	  	
Goodwill	  	 	180,097	  	 	 	180,097	  	 	 	180,097	  	 	 	180,097	  	 	 	180,097	  	
Deferred financing costs, less accumulated amortization	  	 	6,467	  	 	 	6,509	  	 	 	7,205	  	 	 	7,901	  	 	 	8,547	  	
Deferred lease costs, less accumulated amortization	  	 	176,120	  	 	 	176,290	  	 	 	180,832	  	 	 	183,214	  	 	 	187,451	  	
Other assets held for sale	  	 	162	  	 	 	293	  	 	 	375	  	 	 	453	  	 	 	549	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total assets	  	$	4,405,501	  	 	$	4,428,410	  	 	$	4,395,345	  	 	$	4,431,851	  	 	$	4,494,484	  	

Liabilities:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Lines of credit and notes payable	  	$	1,402,525	  	 	$	1,402,525	  	 	$	1,516,525	  	 	$	1,532,525	  	 	$	1,560,525	  	
Accounts payable, accrued expenses, and accrued capital expenditures	  	 	99,819	  	 	 	83,172	  	 	 	97,747	  	 	 	111,345	  	 	 	98,803	  	
Deferred income	  	 	33,916	  	 	 	39,079	  	 	 	34,506	  	 	 	29,788	  	 	 	28,412	  	
Intangible lease liabilities, less accumulated amortization	  	 	54,730	  	 	 	57,689	  	 	 	60,655	  	 	 	64,082	  	 	 	67,143	  	
Interest rate swap	  	 	742	  	 	 	2,316	  	 	 	3,866	  	 	 	5,675	  	 	 	6,865	  	
Other liabilities held for sale	  	 	2,546	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities	  	 	1,594,278	  	 	 	1,584,781	  	 	 	1,713,299	  	 	 	1,743,415	  	 	 	1,761,748	  	
 	 	 	 	 	 	
Redeemable common stock(1)	  	 	—  	  	 	 	—  	  	 	 	75,164	  	 	 	61,716	  	 	 	52,230	  	
 	 	 	 	 	 	
Stockholder’s equity(2) :	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Class A common stock	  	 	536	  	 	 	534	  	 	 	397	  	 	 	395	  	 	 	394	  	
Class B-1 common stock	  	 	397	  	 	 	397	  	 	 	397	  	 	 	395	  	 	 	394	  	
Class B-2 common stock	  	 	397	  	 	 	397	  	 	 	397	  	 	 	396	  	 	 	394	  	
Class B-3 common stock	  	 	397	  	 	 	397	  	 	 	398	  	 	 	396	  	 	 	395	  	
Additional paid in capital	  	 	3,659,910	  	 	 	3,659,257	  	 	 	3,477,168	  	 	 	3,461,698	  	 	 	3,449,489	  	
Cumulative distributions in excess of earnings	  	 	(855,631	) 	 	 	(820,878	) 	 	 	(798,561	) 	 	 	(774,774	) 	 	 	(716,949	) 	
Redeemable common stock(1)	  	 	—  	  	 	 	—  	  	 	 	(75,164	) 	 	 	(61,716	) 	 	 	(52,230	) 	
Other comprehensive loss	  	 	(742	) 	 	 	(2,316	) 	 	 	(3,866	) 	 	 	(5,675	) 	 	 	(6,865	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Piedmont stockholders’ equity	  	 	2,805,264	  	 	 	2,837,788	  	 	 	2,601,166	  	 	 	2,621,115	  	 	 	2,675,022	  	
Non-controlling interest	  	 	5,959	  	 	 	5,841	  	 	 	5,716	  	 	 	5,605	  	 	 	5,484	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total stockholders’ equity	  	 	2,811,223	  	 	 	2,843,629	  	 	 	2,606,882	  	 	 	2,626,720	  	 	 	2,680,506	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities, redeemable common stock and stockholders’ equity	  	$	4,405,501	  	 	$	4,428,410	  	 	$	4,395,345	  	 	$	4,431,851	  	 	$	4,494,484	  	

All classes of common stock outstanding at end of period  (2)	  	 	172,658	  	 	 	172,517	  	 	 	158,917	  	 	 	158,215	  	 	 	157,668	  	
 
(1)	During the three months ended March 31, 2010, the board of directors terminated the share redemption plan. We are no longer required by GAAP to reclassify any of our common stock outstanding as redeemable common stock.	
(2)	On January 22, 2010, we filed an amendment to our charter to effect a recapitalization of our common stock as described further in our SEC filings. Upon the effectiveness of the recapitalization, each share of our outstanding common stock converted automatically into: (a) 1/12th of a share of our Class A common stock; plus (b) 1/12th of a share of our Class B-1 common stock; plus (c) 1/12th of a share of our Class B-2 common stock; plus (d) 1/12th of a share of our Class B-3 common stock. The recapitalization had the effect of a one-for-three reverse stock split. Prior period share and per share information in this report has been restated to reflect this recapitalization.	
 
9

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	
 	  	6/30/2010	 	 	3/31/2010	 	 	12/31/2009	 	 	9/30/2009	 	 	6/30/2009	 	
Revenues:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental income	  	$	110,623	  	 	$	110,511	  	 	$	110,405	  	 	$	111,279	  	 	$	110,400	  	
Tenant reimbursements	  	 	33,374	  	 	 	35,084	  	 	 	36,108	  	 	 	36,922	  	 	 	36,059	  	
Property management fee revenue	  	 	705	  	 	 	753	  	 	 	928	  	 	 	742	  	 	 	744	  	
Other rental income	  	 	479	  	 	 	496	  	 	 	1,982	  	 	 	—  	  	 	 	782	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	145,181	  	 	 	146,844	  	 	 	149,423	  	 	 	148,943	  	 	 	147,985	  	
 	 	 	 	 	 	
Operating expenses:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property operating costs	  	 	55,497	  	 	 	55,361	  	 	 	57,281	  	 	 	57,592	  	 	 	55,626	  	
Depreciation	  	 	25,584	  	 	 	25,691	  	 	 	26,701	  	 	 	26,403	  	 	 	26,172	  	
Amortization	  	 	11,004	  	 	 	11,386	  	 	 	16,172	  	 	 	13,991	  	 	 	13,695	  	
Impairment loss on real estate assets	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	35,063	  	 	 	—  	  	
General and administrative	  	 	7,952	  	 	 	6,620	  	 	 	6,219	  	 	 	5,656	  	 	 	8,077	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses	  	 	100,037	  	 	 	99,058	  	 	 	106,373	  	 	 	138,705	  	 	 	103,570	  	

Real estate operating income	  	 	45,144	  	 	 	47,786	  	 	 	43,050	  	 	 	10,238	  	 	 	44,415	  	
 	 	 	 	 	 	
Other income (expense):	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest expense	  	 	(18,933	) 	 	 	(19,091	) 	 	 	(19,488	) 	 	 	(19,518	) 	 	 	(19,394	) 	
Interest and other income	  	 	1,036	  	 	 	969	  	 	 	652	  	 	 	1,989	  	 	 	1,147	  	
Equity in income of unconsolidated joint ventures	  	 	647	  	 	 	737	  	 	 	672	  	 	 	(1,985	) 	 	 	754	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total other income (expense)	  	 	(17,250	) 	 	 	(17,385	) 	 	 	(18,164	) 	 	 	(19,514	) 	 	 	(17,493	) 	

Income from continuing operations	  	 	27,894	  	 	 	30,401	  	 	 	24,886	  	 	 	(9,276	) 	 	 	26,922	  	
 	 	 	 	 	 	
Operating income, excluding impairment loss	  	 	1,454	  	 	 	1,185	  	 	 	1,179	  	 	 	1,137	  	 	 	1,174	  	
Impairment loss	  	 	(9,587	) 	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Discontinued operations (1)	  	 	(8,133	) 	 	 	1,185	  	 	 	1,179	  	 	 	1,137	  	 	 	1,174	  	

Net income	  	 	19,761	  	 	 	31,586	  	 	 	26,065	  	 	 	(8,139	) 	 	 	28,096	  	
 	 	 	 	 	 	
Less: Net income attributable to noncontrolling interest	  	 	(125	) 	 	 	(126	) 	 	 	(119	) 	 	 	(121	) 	 	 	(120	) 	

Net income attributable to Piedmont	  	$	19,636	  	 	$	31,460	  	 	$	25,946	  	 	$	(8,260	) 	 	$	27,976	  	

Weighted average common shares outstanding - diluted	  	 	172,718	  	 	 	165,200	  	 	 	158,393	  	 	 	157,760	  	 	 	158,304	  	
 	 	 	 	 	 	
Net income per share available to common stockholders - basic and diluted	  	$	0.11	  	 	$	0.19	  	 	$	0.16	  	 	$	(0.05	) 	 	$	0.18	  	

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

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	 	Six Months Ended	 	
 	  	6/30/2010	 	 	6/30/2009	 	 	Change	 	 	Change	 	 	6/30/2010	 	 	6/30/2009	 	 	Change	 	 	Change	 	
Revenues:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental income	  	$	110,623	  	 	$	110,400	  	 	$	223	  	 	0.2	% 	 	$	221,134	  	 	$	221,752	  	 	$	(618	) 	 	-0.3	% 	
Tenant reimbursements	  	 	33,374	  	 	 	36,059	  	 	 	(2,685	) 	 	-7.4	% 	 	 	68,458	  	 	 	76,164	  	 	 	(7,706	) 	 	-10.1	% 	
Property management fee revenue	  	 	705	  	 	 	744	  	 	 	(39	) 	 	-5.2	% 	 	 	1,458	  	 	 	1,441	  	 	 	17	  	 	1.2	% 	
Other rental income	  	 	479	  	 	 	782	  	 	 	(303	) 	 	-38.7	% 	 	 	975	  	 	 	781	  	 	 	194	  	 	24.8	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	145,181	  	 	 	147,985	  	 	 	(2,804	) 	 	-1.9	% 	 	 	292,025	  	 	 	300,138	  	 	 	(8,113	) 	 	-2.7	% 	
 	 	 	 	 	 	 	 	 	
Operating expenses:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property operating costs	  	 	55,497	  	 	 	55,626	  	 	 	129	  	 	0.2	% 	 	 	110,858	  	 	 	115,716	  	 	 	4,858	  	 	4.2	% 	
Depreciation	  	 	25,584	  	 	 	26,172	  	 	 	588	  	 	2.2	% 	 	 	51,275	  	 	 	51,412	  	 	 	137	  	 	0.3	% 	
Amortization	  	 	11,004	  	 	 	13,695	  	 	 	2,691	  	 	19.6	% 	 	 	22,390	  	 	 	27,136	  	 	 	4,746	  	 	17.5	% 	
General and administrative	  	 	7,952	  	 	 	8,077	  	 	 	125	  	 	1.5	% 	 	 	14,572	  	 	 	15,441	  	 	 	869	  	 	5.6	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses	  	 	100,037	  	 	 	103,570	  	 	 	3,533	  	 	3.4	% 	 	 	199,095	  	 	 	209,705	  	 	 	10,610	  	 	5.1	% 	

Real estate operating income	  	 	45,144	  	 	 	44,415	  	 	 	729	  	 	1.6	% 	 	 	92,930	  	 	 	90,433	  	 	 	2,497	  	 	2.8	% 	
 	 	 	 	 	 	 	 	 	
Other income (expense):	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest expense	  	 	(18,933	) 	 	 	(19,394	) 	 	 	461	  	 	2.4	% 	 	 	(38,024	) 	 	 	(38,736	) 	 	 	712	  	 	1.8	% 	
Interest and other income	  	 	1,036	  	 	 	1,147	  	 	 	(111	) 	 	-9.7	% 	 	 	2,005	  	 	 	1,809	  	 	 	196	  	 	10.8	% 	
Equity in income of unconsolidated joint ventures	  	 	647	  	 	 	754	  	 	 	(107	) 	 	-14.2	% 	 	 	1,384	  	 	 	1,417	  	 	 	(33	) 	 	-2.3	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total other income (expense)	  	 	(17,250	) 	 	 	(17,493	) 	 	 	243	  	 	1.4	% 	 	 	(34,635	) 	 	 	(35,510	) 	 	 	875	  	 	2.5	% 	

Income from continuing operations	  	 	27,894	  	 	 	26,922	  	 	 	972	  	 	3.6	% 	 	 	58,295	  	 	 	54,923	  	 	 	3,372	  	 	6.1	% 	
 	 	 	 	 	 	 	 	 	
Operating income, excluding impairment loss	  	 	1,454	  	 	 	1,174	  	 	 	280	  	 	23.9	% 	 	 	2,639	  	 	 	2,329	  	 	 	310	  	 	13.3	% 	
Impairment loss	  	 	(9,587	) 	 	 	—  	  	 	 	(9,587	) 	 	0.0	% 	 	 	(9,587	) 	 	 	—  	  	 	 	(9,587	) 	 	0.0	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Discontinued operations (1)	  	 	(8,133	) 	 	 	1,174	  	 	 	(9,307	) 	 	-792.8	% 	 	 	(6,948	) 	 	 	2,329	  	 	 	(9,277	) 	 	-398.3	% 	

Net income	  	 	19,761	  	 	 	28,096	  	 	 	(8,335	) 	 	-29.7	% 	 	 	51,347	  	 	 	57,252	  	 	 	(5,905	) 	 	-10.3	% 	
 	 	 	 	 	 	 	 	 	
Less: Net income attributable to noncontrolling interest	  	 	(125	) 	 	 	(120	) 	 	 	(5	) 	 	-4.2	% 	 	 	(251	) 	 	 	(238	) 	 	 	(13	) 	 	-5.5	% 	

Net income attributable to Piedmont	  	$	19,636	  	 	$	27,976	  	 	$	(8,340	) 	 	-29.8	% 	 	$	51,096	  	 	$	57,014	  	 	$	(5,918	) 	 	-10.4	% 	

Weighted average common shares outstanding - diluted	  	 	172,718	  	 	 	158,304	  	 	 	 	 	 	 	 	 	 	168,912	  	 	 	159,047	  	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	
Net income per share available to common stockholders - basic and diluted	  	$	0.11	  	 	$	0.18	  	 	 	 	 	 	 	 	 	$	0.30	  	 	$	0.36	  	 	 	 	 	 	 	 	

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

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	 	Six Months Ended	 	
 	  	6/30/2010	 	 	6/30/2009	 	 	6/30/2010	 	 	6/30/2009	 	
Net income attributable to Piedmont	  	$	19,636	  	 	$	27,976	  	 	$	51,096	  	 	$	57,014	  	
 	 	 	 	 	
Depreciation (1) (2)	  	 	25,872	  	 	 	26,773	  	 	 	52,122	  	 	 	52,611	  	
Amortization (1)	  	 	11,104	  	 	 	13,797	  	 	 	22,592	  	 	 	27,339	  	

Funds from operations	  	 	56,612	  	 	 	68,546	  	 	 	125,810	  	 	 	136,964	  	
 	 	 	 	 	
Impairment loss on real estate assets (1)	  	 	9,587	  	 	 	—  	  	 	 	9,587	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core funds from operations	  	 	66,199	  	 	 	68,546	  	 	 	135,397	  	 	 	136,964	  	
 	 	 	 	 	
Depreciation of non real estate assets	  	 	178	  	 	 	154	  	 	 	357	  	 	 	306	  	
Stock-based and other non-cash compensation expense	  	 	711	  	 	 	831	  	 	 	1,364	  	 	 	1,835	  	
Deferred financing cost amortization	  	 	696	  	 	 	685	  	 	 	1,392	  	 	 	1,394	  	
Add/(deduct) straight-line effects of lease revenue (1)	  	 	(784	) 	 	 	(1,227	) 	 	 	289	  	 	 	1,469	  	
Amortization of lease-related intangibles (1)	  	 	(1,525	) 	 	 	(1,223	) 	 	 	(2,951	) 	 	 	(2,453	) 	
Income from amortization of discount on purchase of mezzanine loans	  	 	(694	) 	 	 	(929	) 	 	 	(1,362	) 	 	 	(1,296	) 	
Non-incremental capital expenditures(3)	  	 	(12,752	) 	 	 	(7,394	) 	 	 	(21,718	) 	 	 	(18,804	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted funds from operations	  	$	52,029	  	 	$	59,443	  	 	$	112,768	  	 	$	119,415	  	

Weighted average common shares outstanding - diluted	  	 	172,718	  	 	 	158,304	  	 	 	168,912	  	 	 	159,047	  	
 	 	 	 	 	
Funds from operations per share (diluted)	  	$	0.33	  	 	$	0.43	  	 	$	0.74	  	 	$	0.86	  	
Core funds from operations per share (diluted)	  	$	0.38	  	 	$	0.43	  	 	$	0.80	  	 	$	0.86	  	
Adjusted funds from operations per share (diluted)	  	$	0.30	  	 	$	0.38	  	 	$	0.67	  	 	$	0.75	  	
 
(1)	Includes adjustments for wholly-owned properties and for our proportionate ownership in unconsolidated joint ventures.	
(2)	Excludes depreciation of non real estate assets.	
(3)	Non-incremental capital expenditures are defined on page 30.	
 
12

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	 	Six Months Ended	 	 	
 	  	6/30/2010	 	 	6/30/2009	 	 	6/30/2010	 	 	6/30/2009	 	 	
Net income attributable to Piedmont	  	$	19,636	  	 	$	 27,976	  	 	$	51,096	  	 	$	57,014	  	 	
 	 	 	 	 	 	
Non-controlling interest	  	 	125	  	 	 	120	  	 	 	251	  	 	 	238	  	 	
Interest expense	  	 	18,933	  	 	 	19,394	  	 	 	38,024	  	 	 	38,736	  	 	
Depreciation(1)	  	 	26,050	  	 	 	26,927	  	 	 	52,479	  	 	 	52,917	  	 	
Amortization(1)	  	 	11,104	  	 	 	13,797	  	 	 	22,592	  	 	 	27,339	  	 	
Impairment loss on real estate assets	  	 	9,587	  	 	 	—  	  	 	 	9,587	  	 	 	—  	  	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core EBITDA	  	 	85,435	  	 	 	88,214	  	 	 	174,029	  	 	 	176,244	  	 	
 	 	 	 	 	 	
General & administrative expenses(1)	  	 	7,993	  	 	 	8,102	  	 	 	14,689	  	 	 	15,505	  	 	
Management fee revenue	  	 	(705	) 	 	 	(744	) 	 	 	(1,458	) 	 	 	(1,441	) 	 	
Interest and other income	  	 	(1,036	) 	 	 	(1,147	) 	 	 	(2,005	) 	 	 	(1,809	) 	 	
Lease termination income	  	 	(479	) 	 	 	(782	) 	 	 	(975	) 	 	 	(781	) 	 	
Lease termination expense - straight line rent & acquisition intangible write-offs	  	 	679	  	 	 	174	  	 	 	746	  	 	 	174	  	 	
Straight line rent adjustment(1)	  	 	(1,462	) 	 	 	(1,378	) 	 	 	(457	) 	 	 	1,318	  	 	
Net effect of amortization of above/(below) market in-place lease intangibles (1)	  	 	(1,525	) 	 	 	(1,247	) 	 	 	(2,952	) 	 	 	(2,477	) 	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core net operating income	  	 	88,900	  	 	 	91,192	  	 	 	181,617	  	 	 	186,733	  	 	
 	 	 	 	 	 	
Acquisitions	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	
Industrial properties	  	 	(91	) 	 	 	(642	) 	 	 	(365	) 	 	 	(1,282	) 	 	
Unconsolidated joint ventures	  	 	(1,187	) 	 	 	(1,275	) 	 	 	(2,453	) 	 	 	(2,467	) 	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Same Store NOI	  	$	87,622	  	 	$	89,275	  	 	$	178,799	  	 	$	182,984	  	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Change period over period	  	 	-1.9	% 	 	 	N/A	  	 	 	-2.3	% 	 	 	N/A	  	 	

 	 	 	 	 	
 	 	Same Store Net Operating Income	  	 	 	  	 	 	
 	 	Top Seven Markets	  	 	 	  	 	 	 	
 	 	 	  	Three Months Ended	  	Six Months Ended	  	 	 	 	 	
 	 	 	  	6/30/2010	  	6/30/2009	  	6/30/2010	  	6/30/2009	  	 	 	 	 	 	 	
 	 	 	  	$	  	%	  	$	  	%	  	$	  	%	  	$	  	%	  	 	 	 	 	 	 	 	 	
 	 	Washington, D.C.	  	$	18,448	  	21.1	  	$	18,213	  	20.4	  	$	37,320	  	20.9	  	$	36,686	  	20.0	  	 	 	 	 	 	 	 	 	 	
 	 	Chicago (2)	  	 	17,599	  	20.1	  	 	19,638	  	22.0	  	 	35,343	  	19.8	  	 	40,599	  	22.2	  	 	 	 	 	 	 	 	 	 	 	
 	 	New York(3)	  	 	14,886	  	17.0	  	 	15,912	  	17.8	  	 	28,601	  	16.0	  	 	31,231	  	17.1	  	 	 	 	 	 	 	 	 	 	 	 	
 	 	Minneapolis	  	 	5,416	  	6.2	  	 	5,331	  	6.0	  	 	10,675	  	6.0	  	 	10,174	  	5.6	  	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Los Angeles(4)	  	 	5,086	  	5.8	  	 	5,489	  	6.1	  	 	10,089	  	5.6	  	 	11,441	  	6.3	  	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Dallas	  	 	3,962	  	4.5	  	 	3,972	  	4.4	  	 	7,807	  	4.4	  	 	7,975	  	4.4	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Boston	  	 	3,927	  	4.5	  	 	3,825	  	4.3	  	 	7,656	  	4.3	  	 	7,622	  	4.2	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Other(5)	  	 	18,298	  	20.8	  	 	16,895	  	19.0	  	 	41,308	  	23.0	  	 	37,256	  	20.2	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	  	 	 	  	 	  	 	 	  	 	  	 	 	  	 	  	 	 	  	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Total	  	$	87,622	  	100.0	  	$	89,275	  	100.0	  	$	178,799	  	100.0	  	$	182,984	  	100.0	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

 
(1)	Includes amounts attributable to our unconsolidated joint venture assets.	
(2)	The decrease in Chicago Same Store Net Operating Income for the three months ended and six months ended June 30, 2010 as compared to the same periods in 2009 is primarily related to a rental abatement concession associated with a lease renewal at Windy Point I in Schaumburg, IL, as well as the previously announced 99,000 square foot partial lease expiration with Kirkland & Ellis at Aon Center in Chicago, IL.	
(3)	The decrease in New York Same Store Net Operating Income for the three months ended June 30, 2010 as compared to the same period in 2009 is primarily related to utility credits to tenants for prior year charges at 60 Broad Street in New York, NY in addition to a one-time payment for utilities in 2009 by a tenant at 5000 Corporate Court in Holtsville, NY. The decrease in New York Same Store Net Operating Income for the six months ended June 30, 2010 as compared to the same period in 2009 is primarily related to a rental abatement associated with the lease restructure/extension with the State of New York as well as the previously mentioned credits to tenants at 60 Broad Street, in addition to tenant reimbursements received in 2009 for prior year expenses at 1111 Durham Avenue in South Plainfield, NJ.	
 
(4)	The decrease in Los Angeles Same Store Net Operating Income for the six months ended June 30, 2010 as compared to the same period in 2009 is due to a number of factors, including holdover rent recognized in 2009 for a lease that terminated in 2008 and a lease default by a bank that leased over 25,000 square feet at our 1901 Main Street building in Irvine, CA.	
(5)	The increase in Other Same Store Net Operating Income for the three months ended June 30, 2010 and the six months ended June 30, 2010 is due to a number of factors, the largest of which is the lease commencement for over 94,000 square feet of the 184,000 square foot First Data Corporation lease in July 2009 at Glenridge Highlands Two in Atlanta, GA in addition to the expiration of the rent abatement period in mid-2009 for the initial space occupied by First Data Corporation comprised of approximately 90,000 square feet. First Data Corporation’s lease for 184,000 square feet allowed for a phased occupancy of that space.	
 
13

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	 	Six Months Ended	 	
 	  	6/30/2010	 	 	6/30/2009	 	 	6/30/2010	 	 	6/30/2009	 	
Net income attributable to Piedmont	  	$	 19,636	  	 	$	 27,976	  	 	$	51,096	  	 	$	57,014	  	
Non-controlling interest	  	 	125	  	 	 	120	  	 	 	251	  	 	 	238	  	
Interest expense	  	 	18,933	  	 	 	19,394	  	 	 	38,024	  	 	 	38,736	  	
Depreciation(1)	  	 	26,050	  	 	 	26,927	  	 	 	52,479	  	 	 	52,917	  	
Amortization(1)	  	 	11,104	  	 	 	13,797	  	 	 	22,592	  	 	 	27,339	  	
Impairment loss on real estate assets	  	 	9,587	  	 	 	—  	  	 	 	9,587	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core EBITDA	  	 	85,435	  	 	 	88,214	  	 	 	174,029	  	 	 	176,244	  	
General & administrative expenses(1)	  	 	7,993	  	 	 	8,102	  	 	 	14,689	  	 	 	15,505	  	
Management fee revenue	  	 	(705	) 	 	 	(744	) 	 	 	(1,458	) 	 	 	(1,441	) 	
Interest and other income	  	 	(1,036	) 	 	 	(1,147	) 	 	 	(2,005	) 	 	 	(1,809	) 	
Lease termination income	  	 	(479	) 	 	 	(782	) 	 	 	(975	) 	 	 	(781	) 	
Lease termination expense - straight line rent & acquisition intangibles write-offs	  	 	679	  	 	 	174	  	 	 	746	  	 	 	174	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core net operating income	  	 	91,887	  	 	 	93,817	  	 	 	185,026	  	 	 	187,892	  	
Acquisitions	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
Industrial properties	  	 	(104	) 	 	 	(641	) 	 	 	(385	) 	 	 	(1,280	) 	
Unconsolidated joint ventures	  	 	(1,124	) 	 	 	(1,229	) 	 	 	(2,376	) 	 	 	(2,385	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Same Store NOI	  	$	90,659	  	 	$	91,947	  	 	$	182,265	  	 	$	184,227	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Change period over period	  	 	-1.4	% 	 	 	N/A	  	 	 	-1.1	% 	 	 	N/A	  	

Same Store Net Operating Income
Top Seven Markets	  	 	 	
 	 	 	
  	  	Three Months Ended	  	Six Months Ended	
  	  	6/30/2010	  	6/30/2009	  	6/30/2010	  	6/30/2009	
  	  	$	  	%	  	$	  	%	  	$	  	%	  	$	  	%	
Chicago (2)	  	$	19,657	  	21.7	  	$	20,925	  	22.8	  	$	38,939	  	21.4	  	$	43,224	  	23.5	
Washington, D.C.	  	 	18,602	  	20.5	  	 	18,770	  	20.4	  	 	37,569	  	20.6	  	 	37,761	  	20.5	
New York(3)	  	 	15,033	  	16.6	  	 	15,715	  	17.1	  	 	30,439	  	16.7	  	 	30,934	  	16.8	
Minneapolis	  	 	5,272	  	5.8	  	 	5,246	  	5.7	  	 	10,351	  	5.7	  	 	10,006	  	5.4	
Los Angeles(4)	  	 	5,057	  	5.6	  	 	5,480	  	6.0	  	 	10,177	  	5.6	  	 	11,479	  	6.2	
Dallas	  	 	3,682	  	4.1	  	 	3,951	  	4.3	  	 	7,532	  	4.1	  	 	7,944	  	4.3	
Boston	  	 	3,600	  	4.0	  	 	3,486	  	3.8	  	 	7,128	  	3.9	  	 	6,956	  	3.8	
Other(5)	  	 	19,756	  	21.7	  	 	18,374	  	19.9	  	 	40,130	  	22.0	  	 	35,923	  	19.5	
 	  	 	 	  	 	  	 	 	  	 	  	 	 	  	 	  	 	 	  	 	
Total	  	$	90,659	  	100.0	  	$	91,947	  	100.0	  	$	182,265	  	100.0	  	$	184,227	  	100.0	

(1)	Includes amounts attributable to our unconsolidated joint venture assets.	
(2)	The decrease in Chicago Same Store Net Operating Income for the three months ended June 30, 2010 as compared to the same period in 2009 is primarily related to the previously announced 99,000 square foot partial lease expiration with Kirkland & Ellis at Aon Center in Chicago, IL; the decrease for the six months ended June 30, 2010 as compared to the same period in 2009 is primarily related to the same lease expiration at Aon Center, as well as a lower rental rate associated with a lease renewal at Windy Point I in Schaumburg, IL.	
(3)	The decrease in New York Same Store Net Operating Income for the three months ended June 30, 2010 and the six months ended June 30, 2010 as compared to the same periods in 2009 is primarily related to a one-time payment for utilities in 2009 by a tenant at 5000 Corporate Court in Holtsville, NY as well as tenant reimbursements received in 2009 for prior year expenses at 1111 Durham Avenue in South Plainfield, NJ.	
(4)	The decrease in Los Angeles Same Store Net Operating Income for the six months ended June 30, 2010 as compared to the same period in 2009 is due to a number of factors, including holdover rent recognized in 2009 for a lease that terminated in 2008 and a lease default by a bank that leased over 25,000 square feet at our 1901 Main Street building in Irvine, CA.	
(5)	The increase in Other Same Store Net Operating Income for the three months ended June 30, 2010 and the six months ended June 30, 2010 is due to a number of factors, the largest of which is the lease commencement for over 94,000 square feet of the 184,000 square foot First Data Corporation lease in July 2009 at Glenridge Highlands Two in Atlanta, GA. The lease for the balance of the First Data Corporation space commenced in first quarter 2009. First Data Corporation’s lease for 184,000 square feet allowed for a phased occupancy of that space.	
 
14

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

 
 	 	 	 	 	 	 	 	 	 	 	 	
 	  	As of
June 30, 2010	 	 	As of
December 31, 2009	 	 	
 	  	 	 	 	 	 	 	 	
Common stock price(1)	  	$	18.73	  	 	$	N/A	  	 	 	
 	 	 	 	 	
Total shares outstanding (2)	  	 	172,658	  	 	 	158,917	  	 	 	
 	 	 	 	 	
Class A common stock	  	 	53,552	  	 	 	39,729	  	 	 	
Class B-1 common stock	  	 	39,702	  	 	 	39,729	  	 	 	
Class B-2 common stock	  	 	39,702	  	 	 	39,729	  	 	 	
Class B-3 common stock	  	 	39,702	  	 	 	39,729	  	 	 	
 	 	 	 	 	
Equity market capitalization(3)	  	$	3,233,893	  	 	$	N/A	  	 	 	
 	 	 	 	 	
Total consolidated debt	  	$	1,402,525	  	 	$	1,516,525	  	 	 	
 	 	 	 	 	
Total market capitalization(1)	  	$	4,636,418	  	 	$	N/A	  	 	 	
 	 	 	 	 	
Total debt / Total market capitalization	  	 	30.3	% 	 	 	N/A	  	 	 	
 	 	 	 	 	
Total gross real estate assets	  	$	4,548,428	  	 	$	4,564,409	  	 	 	
 	 	 	 	 	
Total debt / Total gross real estate assets (4)	  	 	30.8	% 	 	 	33.1	% 	 	 	
 	 	 	 	 	
Total debt / Total gross assets (5)	  	 	26.7	% 	 	 	29.1	% 	 	 	
 
(1)	Reflects closing common stock price as of the end of the reporting period. The company was not listed on a public exchange as of December 31, 2009. Our Class A common stock initially listed on the New York Stock Exchange on February 10, 2010.	
(2)	On January 22, 2010, we filed an amendment to our charter to effect a recapitalization of our common stock as described further in our SEC filings. Upon the effectiveness of the recapitalization, each share of our outstanding common stock converted automatically into: (a) 1/12th of a share of our Class A common stock; plus (b) 1/12th of a share of our Class B-1 common stock; plus (c) 1/12th of a share of our Class B-2 common stock; plus (d) 1/12th of a share of our Class B-3 common stock. The recapitalization had the effect of a one-for-three reverse stock split. Prior period share and per share information in this report has been restated to reflect this recapitalization.	
(3)	Market value of common shares is defined as the total number of shares of all classes of our common stock outstanding multiplied by the closing price of our Class A common stock at the end of the reporting period, as further qualified in footnote (1) above.	
(4)	Total debt to total gross real estate assets ratio for the current period is defined as total debt divided by Piedmont’s gross real estate assets. Gross real estate assets is defined as total real estate assets with the add back of accumulated depreciation and accumulated amortization related to real estate assets.	
(5)	Total debt to total gross assets ratio for the current period is defined as total debt divided by gross assets. Gross assets is defined as total assets with the add back of accumulated depreciation and accumulated amortization related to real estate assets.	
 
15

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Floating Rate & Fixed Rate Debt	
 	 	 	 	 	
Debt (1)	  	Amount	 	 	Weighted Average
Interest Rate	 	 	Weighted Average
Maturity	 	 	 	
Floating Rate	  	$	0	(2) 	 	 	0.0	%(3) 	 	26.0 months	  	 	 	
Fixed Rate (4)	  	 	1,402,525	  	 	 	4.7	% 	 	47.3 months	  	 	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	1,402,525	  	 	 	4.7	% 	 	47.3 months	  	 	 	

Unsecured & Secured Debt	
 	 	 	 	 	
Debt (1)	  	Amount	 	 	Weighted Average
Interest Rate	 	 	Weighted Average
Maturity	 	 	 	
Unsecured	  	$	250,000	  	 	 	2.4	%(4) 	 	11.9 months	  	 	 	
Secured	  	 	1,152,525	  	 	 	5.2	% 	 	54.9 months	  	 	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	$	1,402,525	  	 	 	4.7	% 	 	47.3 months	  	 	 	

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

(1)	All of Piedmont’s outstanding debt as of June 30, 2010 is interest-only debt.	
(2)	Amount represents the outstanding balance as of June 30, 2010 on the $500M Unsecured Line of Credit, which matures August 2011. Management intends to exercise the one-year extension option to extend the maturity date to August 2012. The payment of a 15 bp fee will be required to extend the term of this facility.	
(3)	Rate is equal to the weighted average interest on all outstanding draws as of June 30, 2010. Piedmont may select from multiple interest rate options with each draw, including the prime rate and various length LIBOR locks. All LIBOR selections are subject to an additional spread of .475% over the selected rate based on Piedmont’s current credit rating.	
(4)	The $250 Million Unsecured Term Loan has a stated variable rate; however, Piedmont entered into several interest rate swap agreements which effectively fix the interest rate on this loan at 2.36% through June 28, 2011.	
 
16

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

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

(1)	All of Piedmont’s outstanding debt as of June 30, 2010 is interest-only debt.	
(2)	The nine property collateralized pool includes 1200 Crown Colony Drive, Braker Pointe III, 2 Gatehall Drive, One and Two Independence Square, 2120 West End Avenue, 111 Sylvan Avenue, 200 Bridgewater Crossing, and Fairway Center II.	
(3)	The four property collateralized pool includes 1430 Enclave Parkway, Windy Point I and II, and 1055 East Colorado Boulevard.	
(4)	Weighted average is based on the total balance outstanding and interest rate at June 30, 2010.	
(5)	The $250 Million Unsecured Term Loan has a stated variable rate; however, Piedmont entered into several interest rate swap agreements which effectively fix the interest rate on this loan at 2.36% through June 28, 2011.	
(6)	All of Piedmont’s outstanding debt as of June 30, 2010 is term debt with the exception of the $500 Million Unsecured Facility.	
(7)	Rate is equal to the weighted-average interest rate on all outstanding draws as of June 30, 2010. Piedmont may select from multiple interest rate options with each draw, including the prime rate and various length LIBOR locks. All LIBOR selections are subject to an additional spread (0.475% as of June 30, 2010) over the selected rate based on Piedmont’s current credit rating.	
(8)	Piedmont may extend the term for one additional year provided Piedmont is not then in default and upon the payment of a 15 basis point extension fee.	
 
17

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

 
 	 	 	 	 	
Debt Covenant Compliance (1)	  	Required	  	Actual	
Maximum Leverage Ratio	  	0.60	  	0.29	
Minimum Fixed Charge Coverage Ratio (2)	  	1.50	  	4.60	
Maximum Secured Indebtedness Ratio	  	0.40	  	0.24	
Minimum Unencumbered Leverage Ratio	  	1.60	  	8.80	
Minimum Unencumbered Interest Coverage Ratio(3)	  	1.75	  	10.80	
Maximum Certain Permitted Investments Ratio(4)	  	0.35	  	0.03	
 
(1)	Debt covenant compliance calculations relate to specific calculations detailed in our term loan and line of credit agreements.	
(2)	Defined as EBITDA for the trailing four quarters (including the company’s share of EBITDA from unconsolidated interests), less one-time or non-recurring gains or losses, less a $0.15 per square foot capital reserve, and excluding the impact of straight line rent leveling adjustments and amortization of intangibles divided by the company’s share of fixed charges, as more particularly described in the credit agreements.	
(3)	Defined as net operating income for the trailing four quarters for unencumbered assets (including the company’s share of net operating income from unconsolidated interests that are unencumbered) less a $0.15 per square foot capital reserve divided by the company’s share of interest expense associated with unsecured financings only, as more particularly described in the credit agreements.	
(4)	Permitted investments are defined as unconsolidated interests, debt investments, unimproved land, and development projects. Investments in permitted investments shall not exceed 35% of total asset value.	

Other Debt Coverage Ratios	  	Three months ended
June  30, 2010	  	Six months ended
June 30, 2010	  	Year ended
December 31, 2009	 	
 	  	 	  	 	  	 	 	 	
Net debt / Core EBITDA	  	3.9x	  	3.8x	  	4.2x	 	 	
Fixed charge coverage ratio (5)	  	4.5x	  	4.6x	  	4.6x	 	 	
Interest coverage ratio (6)	  	4.5x	  	4.6x	  	4.6x	 	 	
 
(5)	Fixed charge coverage is calculated as Core EBITDA divided by the sum of interest expense, principal amortization, capitalized interest and preferred dividends. We had no capitalized interest, principal amortization or preferred dividends during the period ending June 30, 2010.	
(6)	Interest coverage ratio is calculated as Core EBITDA divided by the sum of interest expense and capitalized interest. We had no capitalized interest during the period ending June 30, 2010.	
 
18

Piedmont Office Realty Trust, Inc.
Tenant Diversification
As of June 30, 2010
(in thousands)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
  	  	Credit Rating (1)	  	Number of
Properties	  	Lease
Expiration(s)  (2)	 	Annualized Lease
Revenue  (3)	  	Percentage of
Annualized Lease
Revenue (%)	  	Leased Square
Footage	  	Percentage of
Leased Square
Footage (%)	
U.S. Government	  	AAA	  	10	  	(4)	 	$	75,950	  	13.0	  	1,684	  	9.3	
BP(5)	  	A	  	1	  	2013	 	 	32,184	  	5.5	  	784	  	4.3	
Leo Burnett	  	BBB+	  	2	  	2019	 	 	28,171	  	4.8	  	695	  	3.8	
US Bancorp	  	A+	  	1	  	2014	 	 	21,575	  	3.7	  	715	  	3.9	
State of New York	  	AA	  	1	  	2019	 	 	18,769	  	3.2	  	481	  	2.6	
Nestle	  	AA	  	1	  	2015	 	 	18,714	  	3.2	  	480	  	2.6	
Winston & Strawn	  	No rating available (6)	  	1	  	2024	 	 	18,654	  	3.2	  	417	  	2.3	
Sanofi-aventis	  	AA-	  	2	  	2012	 	 	17,338	  	3.0	  	454	  	2.5	
Independence Blue Cross	  	No rating available	  	1	  	2023	 	 	14,897	  	2.5	  	761	  	4.2	
Kirkland & Ellis	  	No rating available (6)	  	1	  	2011	 	 	11,612	  	2.0	  	366	  	2.0	
Zurich American	  	AA-	  	1	  	2011	 	 	10,685	  	1.8	  	300	  	1.6	
Shaw	  	BB+	  	1	  	2018	 	 	9,546	  	1.6	  	313	  	1.7	
State Street Bank	  	AA-	  	1	  	2021	 	 	9,414	  	1.6	  	235	  	1.3	
Lockheed Martin	  	A-	  	3	  	2014	 	 	8,796	  	1.5	  	284	  	1.6	
DDB Needham	  	A-	  	1	  	2018	 	 	8,721	  	1.5	  	244	  	1.3	
City of New York	  	AA	  	1	  	2020	 	 	7,863	  	1.3	  	313	  	1.7	
Citigroup	  	A	  	2	  	2010	 	 	7,555	  	1.3	  	415	  	2.3	
Gemini	  	A+	  	1	  	2013	 	 	7,532	  	1.3	  	205	  	1.1	
Gallagher	  	No rating available	  	1	  	2018	 	 	6,995	  	1.2	  	307	  	1.7	
Caterpillar Financial	  	A	  	1	  	2022	 	 	6,975	  	1.2	  	312	  	1.7	
Other	  	 	  	 	  	Various	 	 	244,259	  	41.6	  	8,433	  	46.5	
 	  	 	  	 	  	 	 	 	 	  	 	  	 	  	 	
Total	  	 	  	 	  	 	 	$	586,205	  	100.0	  	18,198	  	100.0	

 
 
(1)	Credit rating may reflect credit rating of parent or guarantor.	
(2)	Represents the expiration year of the majority of the square footage leased by the tenant.	
(3)	Please refer to page 29 for the definition of Annualized Lease Revenue.	
(4)	There are several leases with several different agencies of the U.S. Government with expiration years ranging from 2011 to 2025.	
(5)	Majority of space is subleased to Aon Corporation.	
(6)	While no ratings are available for Winston & Strawn and Kirkland & Ellis, these tenants are ranked #33 and #5, respectively, in the 2010 AmLaw 100 ranking (based on 2009 financial data), a publication of The American Lawyer Magazine, which annually ranks the top-grossing, most profitable law firms.	
 
19

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

 
 	 	 	 	 	 	
Tenant Credit Rating (1)	  	Annualized  Lease
Revenue
($’s in
thousands)	  	Percentage of
Annualized Lease
Revenue (%)	
AAA	  	$	82,676	  	14.1	
AA	  	 	96,053	  	16.4	
A	  	 	128,113	  	21.9	
BBB	  	 	70,252	  	12.0	
BB	  	 	26,693	  	4.5	
B	  	 	16,823	  	2.9	
Below	  	 	1,401	  	0.2	
Not rated	  	 	164,194	  	28.0	
 	  	 	 	  	 	
Total	  	$	586,205	  	100.0	

 
Lease Distribution
As of June 30, 2010

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Number of Leases	  	Percentage of
Leases (%)	  	Annualized
Lease Revenue
($’s in
thousands)	  	Percentage of
Annualized Lease
Revenue (%)	  	Leased Square
Footage (in
thousands)	  	Percentage of
Leased Square
Footage (%)	
2,500 or Less	  	156	  	34.1	  	$	12,673	  	2.2	  	124	  	0.7	
2,501 - 10,000	  	119	  	26.0	  	 	22,608	  	3.9	  	616	  	3.4	
10,001 - 20,000	  	49	  	10.7	  	 	22,770	  	3.9	  	704	  	3.9	
20,001 - 40,000	  	46	  	10.0	  	 	42,478	  	7.2	  	1,309	  	7.2	
40,001 - 100,000	  	33	  	7.2	  	 	64,146	  	10.9	  	2,072	  	11.4	
Greater than 100,000	  	55	  	12.0	  	 	421,530	  	71.9	  	13,373	  	73.4	
 	  	 	  	 	  	 	 	  	 	  	 	  	 	
Total	  	458	  	100.0	  	$	586,205	  	100.0	  	18,198	  	100.0	

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

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended June 30, 2010	 	 	 	  	Six Months Ended June 30, 2010	 	
 	  	Leased Square
Footage	 	 	Rentable Square
Footage	  	Percent Leased (1)	 	 	 	  	Leased
Square
Footage	 	 	Rentable Square
Footage	  	Percent Leased (1)	 	
As of March 31, 2010	  	18,116	  	 	20,230	  	89.6	% 	 	As of December 31,
2009	  	18,221	  	 	20,229	  	90.1	% 	
 	 	 	 	 	 	 	 	
New Leases	  	618	  	 	 	  	 	 	 	New Leases	  	1,153	  	 	 	  	 	 	
Expired Leases	  	(537	) 	 	 	  	 	 	 	Expired Leases	  	(1,177	) 	 	 	  	 	 	
Other	  	1	  	 	44	  	 	 	 	Other	  	1	  	 	45	  	 	 	

As of June 30, 2010  (2)	  	18,198	  	 	20,274	  	89.8	% 	 	As of June 30,
2010  (2)	  	18,198	  	 	20,274	  	89.8	% 	

 
Rental Rate Roll Up / Roll Down (3)

 
 	 	 	 	 	 	 	 	 	 	
 	  	Square Feet	 	 	% Change Cash
Rents	 	 	% Change Accrual Rents	 	
For the three months ended June 30, 2010:	  	 	 	 	 	 	 	 	 	
 	 	 	 	
New, renewal, and expansion leases executed for spaces vacant less than one year	  	453	  	 	(21.6	%) 	 	(22.4	%) 	
Percentage of rentable square footage	  	2.2	% 	 	 	 	 	 	 	
 	 	 	 	
Leases executed for spaces excluded from analysis(4)	  	104	  	 	 	 	 	 	 	
 	 	 	 	
For the six months ended June 30, 2010:	  	 	 	 	 	 	 	 	 	
 	 	 	 	
New, renewal, and expansion leases executed for spaces vacant less than one year	  	569	  	 	(21.5	%) 	 	(21.2	%) 	
Percentage of rentable square footage	  	2.8	% 	 	 	 	 	 	 	
 	 	 	 	
Leases executed for spaces excluded from analysis(4)	  	168	  	 	 	 	 	 	 	
 
(1)	Calculated as leased square footage on June 30, 2010 plus square footage associated with new leases signed for currently vacant spaces divided by total rentable square footage, expressed as a percentage.	
(2)	The square footage associated with leases with end of period expiration dates is included in the end of the period leased square footage.	
(3)	The population analyzed consists of office leases executed during the quarter (retail leases as well as leases associated with our industrial properties and our unconsolidated joint venture assets were excluded from this analysis). For spaces that had been vacant for less than 1 year, the rents last in effect for the previous lease were compared to the initial rents of the new lease. Spaces that had been vacant for greater than 1 year were excluded from this analysis.	
(4)	Represents leases signed at our consolidated office assets that do not qualify for inclusion in the analysis primarily because the space had been vacant for greater than one year.	
 
21

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	OFFICE PORTFOLIO	  	GOVERNMENTAL ENTITIES	
 	  	Annualized Lease
Revenue  (1)	  	Percentage of
Annualized Lease
Revenue (%)	  	Rentable Square
Footage	  	Percentage of
Rentable Square
Footage (%)	  	Annualized Lease
Revenue  (1)	  	Percentage of
Annualized Lease
Revenue (%)	
Vacant	  	$	0	  	0.0	  	2,076	  	10.2	  	$	0	  	0.0	
2010(2)	  	 	28,256	  	4.8	  	1,029	  	5.1	  	 	542	  	0.1	
2011	  	 	71,869	  	12.3	  	2,120	  	10.5	  	 	19,359	  	3.3	
2012	  	 	81,474	  	13.9	  	2,216	  	10.9	  	 	36,687	  	6.3	
2013	  	 	63,708	  	10.9	  	1,716	  	8.5	  	 	1,294	  	0.2	
2014	  	 	51,866	  	8.8	  	1,668	  	8.2	  	 	3,601	  	0.6	
2015	  	 	45,833	  	7.8	  	1,597	  	7.9	  	 	0	  	0.0	
2016	  	 	29,961	  	5.1	  	1,060	  	5.2	  	 	1,029	  	0.2	
2017	  	 	17,309	  	3.0	  	504	  	2.5	  	 	1,248	  	0.2	
2018	  	 	43,712	  	7.5	  	1,455	  	7.2	  	 	8,604	  	1.5	
2019	  	 	54,005	  	9.2	  	1,409	  	6.9	  	 	18,768	  	3.2	
2020	  	 	26,548	  	4.5	  	996	  	4.9	  	 	10,463	  	1.8	
2021	  	 	10,516	  	1.8	  	386	  	1.9	  	 	0	  	0.0	
2022	  	 	8,631	  	1.5	  	341	  	1.7	  	 	0	  	0.0	
2023	  	 	14,897	  	2.5	  	761	  	3.8	  	 	0	  	0.0	
Thereafter	  	 	37,620	  	6.4	  	940	  	4.6	  	 	1,323	  	0.2	

Total / Weighted Average	  	$	586,205	  	100.0	  	20,274	  	100.0	  	$	102,918	  	17.6	

 
(1)	Annualized Lease Revenue for purposes of this schedule includes the revenue effects of leases executed but not commenced as of June 30, 2010.	
(2)	Includes leases with an expiration date of June 30, 2010 aggregating 3,487 square feet and Annualized Lease Revenue of $77,288 for which no new leases were signed.	
 
22

Piedmont Office Realty Trust, Inc.
Annual Lease Expirations
As of June 30, 2010
(in thousands)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	12/31/2010	  	12/31/2011	  	12/31/2012	  	12/31/2013	
 	  	Expiring
Square
Footage	  	Expiring Lease
Revenue   (1)	  	Expiring
Square
Footage	  	Expiring Lease
Revenue   (1)	  	Expiring
Square
Footage	  	Expiring Lease
Revenue   (1)	  	Expiring
Square
Footage	  	Expiring Lease
Revenue   (1)	
Atlanta	  	55	  	$	1,783	  	84	  	$	2,019	  	34	  	$	602	  	46	  	$	1,068	
Austin	  	0	  	 	0	  	0	  	 	0	  	0	  	 	0	  	0	  	 	0	
Boston	  	1	  	 	32	  	0	  	 	2	  	7	  	 	332	  	0	  	 	29	
Central & South Florida	  	6	  	 	195	  	124	  	 	2,736	  	16	  	 	439	  	55	  	 	1,353	
Chicago	  	104	  	 	4,716	  	406	  	 	15,883	  	42	  	 	1,585	  	829	  	 	32,444	
Cleveland	  	0	  	 	0	  	22	  	 	477	  	112	  	 	1,915	  	14	  	 	337	
Dallas	  	19	  	 	334	  	286	  	 	6,117	  	86	  	 	2,246	  	9	  	 	230	
Denver	  	0	  	 	0	  	0	  	 	0	  	0	  	 	0	  	0	  	 	0	
Detroit	  	80	  	 	2,577	  	263	  	 	5,706	  	84	  	 	2,285	  	196	  	 	5,633	
Houston	  	0	  	 	0	  	0	  	 	0	  	0	  	 	0	  	0	  	 	0	
Los Angeles	  	76	  	 	3,620	  	100	  	 	3,619	  	191	  	 	4,048	  	59	  	 	2,150	
Minneapolis	  	6	  	 	195	  	225	  	 	7,409	  	20	  	 	715	  	44	  	 	1,395	
Nashville	  	0	  	 	0	  	0	  	 	0	  	0	  	 	0	  	0	  	 	0	
New York	  	412	  	 	6,865	  	6	  	 	304	  	623	  	 	21,342	  	232	  	 	8,567	
Philadelphia	  	0	  	 	0	  	0	  	 	0	  	0	  	 	0	  	0	  	 	0	
Phoenix	  	91	  	 	1,890	  	45	  	 	789	  	0	  	 	0	  	0	  	 	0	
Portland	  	73	  	 	1,305	  	105	  	 	1,502	  	73	  	 	1,279	  	0	  	 	0	
Seattle	  	87	  	 	2,246	  	38	  	 	1,494	  	0	  	 	0	  	0	  	 	0	
Washington, D.C.	  	19	  	 	1,571	  	416	  	 	22,757	  	928	  	 	44,416	  	232	  	 	10,151	

Total / Weighted Average (2)	  	1,029	  	$	27,329	  	2,120	  	$	70,814	  	2,216	  	$	81,204	  	1,716	  	$	63,357	

(1)	Expiring lease revenue is calculated as expiring square footage multiplied by the rent per square foot of the tenant currently leasing the space.	
(2)	Total expiring lease revenue in any given year will not tie to the expiring Annualized Lease Revenue presented on the Lease Expiration Schedule as the Lease Expiration Schedule accounts for revenue effects of newly signed leases. Expirations in the Lease Expiration Schedule reflect rental rates of newly executed leases, effectively incorporating known roll ups and roll downs.	
 
23

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	For the Three Months Ended	
 	  	June 30, 2010	  	March 31, 2010	  	December 31, 2009	  	September 30, 2009	  	June 30, 2009	
Non-incremental(1)	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Bldg / construction / dev	  	$	3,606	  	$	2,638	  	$	2,539	  	$	458	  	$	969	
Tenant improvements	  	 	6,117	  	 	3,591	  	 	10,278	  	 	3,527	  	 	5,232	
Leasing costs	  	 	3,029	  	 	2,737	  	 	6,076	  	 	4,080	  	 	1,193	
 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Total non-incremental	  	 	12,752	  	 	8,966	  	 	18,893	  	 	8,065	  	 	7,394	
 	 	 	 	 	 	
Incremental (1)	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Bldg / construction / dev	  	 	439	  	 	250	  	 	1,559	  	 	741	  	 	326	
Tenant improvements	  	 	0	  	 	0	  	 	19	  	 	0	  	 	0	
Leasing costs	  	 	0	  	 	0	  	 	0	  	 	0	  	 	0	
 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Total incremental	  	 	439	  	 	250	  	 	1,578	  	 	741	  	 	326	

Total capital expenditures	  	$	13,191	  	$	9,216	  	$	20,471	  	$	8,806	  	$	7,720	

 	 	 	 	 	 	 	 	 	 	 	
 
Tenant improvement commitments(2)
 	  	 	 	 	
Tenant improvement commitments outstanding as of March 31, 2010	  	$	118,895	  	
New tenant improvement commitments related to leases executed during period	  	 	14,436	  	
Tenant improvement commitments fulfilled or expired(3)	  	 	(20,915	) 	
 	  	 	 	 	
Total as of June 30, 2010	  	$	112,416	  	

NOTE: The information presented on this page is for all consolidated assets, inclusive of our industrial properties.
 
(1)	Definitions for non-incremental and incremental capital expenditures can be found on pages 29 and 30.	
(2)	Commitments are unexpired contractual tenant improvement obligations for leases executed in current and prior periods that have not yet been fulfilled. The three largest commitments total approximately $65.6 million, or 58% of total outstanding commitments.	
(3)	Includes items that are presented on Piedmont’s financial statements through accrual entries for deferred tenant allowance items, including portions of tenant improvement allowances that can be used for moving costs or free rent or other similar expenditures.	
 
24

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	For the Six
Months Ended
June 30, 2010	  	For the Year Ended	 	
 	  	 	  	2009	  	2008	  	2007	 	 	
Renewal Leases	  	 	 	  	 	 	  	 	 	  	 	 	 	 	
Number of leases	  	 	14	  	 	34	  	 	34	  	 	39	 	 	
Square feet	  	 	463,487	  	 	1,568,895	  	 	967,959	  	 	1,672,383	 	 	
Tenant improvements per square foot	  	$	10.04	  	$	12.01	  	$	8.28	  	$	13.19	 	 	
Leasing commissions per square foot	  	$	6.61	  	$	5.51	  	$	7.17	  	$	7.18	 	 	
 	  	 	 	  	 	 	  	 	 	  	 	 	 	 	
Total per square foot	  	$	16.65	  	$	17.52	  	$	15.45	  	$	20.37	 	 	
 	 	 	 	 	 	 	
Tenant improvements per square foot per year of lease term	  	$	1.37	  	$	1.44	  	$	1.39	  	$	1.85	 	 	
Leasing commissions per square foot per year of lease term	  	$	0.90	  	$	0.66	  	$	1.20	  	$	1.01	 	 	
 	  	 	 	  	 	 	  	 	 	  	 	 	 	 	
Total per square foot per year of lease term	  	$	2.27	  	$	2.10	  	$	2.59	  	$	2.86	 	 	

New Leases	  	 	 	  	 	 	  	 	 	  	 	 	 	 	
Number of leases	  	 	17	  	 	28	  	 	37	  	 	44	 	 	
Square feet	  	 	274,026	  	 	700,295	  	 	747,919	  	 	508,605	 	 	
Tenant improvements per square foot	  	$	25.59	  	$	45.04	  	$	30.59	  	$	24.93	 	 	
Leasing commissions per square foot	  	$	9.14	  	$	17.12	  	$	15.95	  	$	10.39	 	 	
 	  	 	 	  	 	 	  	 	 	  	 	 	 	 	
Total per square foot	  	$	34.73	  	$	62.16	  	$	46.54	  	$	35.32	 	 	
 	 	 	 	 	 	 	
Tenant improvements per square foot per year of lease term	  	$	3.31	  	$	4.05	  	$	3.24	  	$	3.29	 	 	
Leasing commissions per square foot per year of lease term	  	$	1.18	  	$	1.54	  	$	1.69	  	$	1.37	 	 	
 	  	 	 	  	 	 	  	 	 	  	 	 	 	 	
Total per square foot per year of lease term	  	$	4.49	  	$	5.59	  	$	4.93	  	$	4.66	 	 	

Total	  	 	 	  	 	 	  	 	 	  	 	 	 	 	
Number of leases	  	 	31	  	 	62	  	 	71	  	 	83	 	 	
Square feet	  	 	737,513	  	 	2,269,190	  	 	1,715,878	  	 	2,180,988	 	 	
Tenant improvements per square foot	  	$	15.82	  	$	22.21	  	$	18.01	  	$	15.93	 	 	
Leasing commissions per square foot	  	$	7.55	  	$	9.09	  	$	11.00	  	$	7.93	 	 	
 	  	 	 	  	 	 	  	 	 	  	 	 	 	 	
Total per square foot	  	$	23.37	  	$	31.30	  	$	29.01	  	$	23.86	 	 	
 	 	 	 	 	 	 	
Tenant improvements per square foot per year of lease term	  	$	2.12	  	$	2.42	  	$	2.41	  	$	2.21	 	 	
Leasing commissions per square foot per year of lease term	  	$	1.01	  	$	0.99	  	$	1.47	  	$	1.10	 	 	
 	  	 	 	  	 	 	  	 	 	  	 	 	 	 	
Total per square foot per year of lease term	  	$	3.13	  	$	3.41	  	$	3.88	  	$	3.31	 	 	
 	  	 	 	  	 	 	  	 	 	  	 	 	 	 	
NOTE: This information is presented for our consolidated office assets only.
 
25

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Location	  	Number of
Properties	  	Annualized Lease
Revenue ($’s in
thousands)	  	Percentage of
Annualized Lease
Revenue (%)	  	Rentable Square
Footage (in
Thousands)	  	Percentage of
Rentable Square
Footage (%)	  	Leased Square
Footage (in
thousands)	  	Percent Leased
(%)	
Chicago	  	6	  	$	153,783	  	26.2	  	4,885	  	24.1	  	4,282	  	87.7	
Washington, D.C.	  	14	  	 	116,115	  	19.8	  	3,045	  	15.0	  	2,590	  	85.1	
New York	  	9	  	 	96,036	  	16.4	  	3,330	  	16.4	  	3,120	  	93.7	
Minneapolis	  	2	  	 	37,056	  	6.3	  	1,228	  	6.1	  	1,211	  	98.6	
Los Angeles	  	5	  	 	34,124	  	5.8	  	1,133	  	5.6	  	963	  	85.0	
Dallas	  	7	  	 	26,783	  	4.6	  	1,275	  	6.3	  	1,167	  	91.5	
Boston	  	4	  	 	23,783	  	4.1	  	583	  	2.9	  	562	  	96.4	
Detroit	  	4	  	 	20,256	  	3.5	  	929	  	4.6	  	757	  	81.5	
Philadelphia	  	1	  	 	14,897	  	2.5	  	761	  	3.8	  	761	  	100.0	
Atlanta	  	3	  	 	11,800	  	2.0	  	607	  	3.0	  	467	  	76.9	
Houston	  	1	  	 	9,562	  	1.6	  	313	  	1.5	  	313	  	100.0	
Phoenix	  	4	  	 	7,732	  	1.3	  	557	  	2.7	  	434	  	77.9	
Nashville	  	1	  	 	6,975	  	1.2	  	312	  	1.5	  	312	  	100.0	
Central & South Florida	  	3	  	 	6,158	  	1.1	  	297	  	1.5	  	261	  	87.9	
Austin	  	1	  	 	5,668	  	1.0	  	195	  	1.0	  	195	  	100.0	
Portland	  	4	  	 	5,109	  	0.9	  	325	  	1.6	  	325	  	100.0	
Seattle	  	1	  	 	4,318	  	0.7	  	156	  	0.8	  	147	  	94.2	
Cleveland	  	2	  	 	3,338	  	0.6	  	187	  	0.9	  	175	  	93.6	
Denver	  	1	  	 	2,712	  	0.4	  	156	  	0.7	  	156	  	100.0	

Total/Weighted Average	  	73	  	$	586,205	  	100.0	  	20,274	  	100.0	  	18,198	  	89.8	

 
26

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Industry Diversification	  	Number of
Tenants	  	Percentage of
Total Tenants
(%)	  	Annualized Lease
Revenue ($’s in
thousands)	  	Percentage of
Annualized Lease
Revenue (%)	  	Leased Square
Footage  (in
thousands)	  	Percentage of
Leased Square
Footage (%)	
Governmental Entity	  	5	  	1.3	  	$	102,918	  	17.6	  	2,486	  	13.6	
Business Services	  	59	  	15.2	  	 	72,061	  	12.3	  	2,262	  	12.4	
Depository Institutions	  	16	  	4.1	  	 	55,407	  	9.4	  	1,856	  	10.2	
Legal Services	  	10	  	2.6	  	 	39,317	  	6.7	  	1,055	  	5.8	
Insurance Carriers	  	21	  	5.4	  	 	35,908	  	6.1	  	1,460	  	8.0	
Petroleum Refining & Related Industries	  	1	  	0.2	  	 	32,184	  	5.5	  	784	  	4.3	
Chemicals & Allied Products	  	8	  	2.0	  	 	24,631	  	4.2	  	736	  	4.0	
Nondepository Credit Institutions	  	9	  	2.3	  	 	21,506	  	3.7	  	824	  	4.5	
Engineering, Accounting, Research, Management & Related Services	  	24	  	6.2	  	 	19,909	  	3.4	  	545	  	3.0	
Food & Kindred Products	  	3	  	0.8	  	 	19,455	  	3.3	  	509	  	2.8	
Communications	  	35	  	9.0	  	 	17,380	  	3.0	  	607	  	3.3	
Security & Commodity Brokers, Dealers, Exchanges & Services	  	18	  	4.6	  	 	15,056	  	2.6	  	532	  	2.9	
Electronic & Other Electrical Equipment & Components, Except Computer	  	9	  	2.3	  	 	13,918	  	2.4	  	615	  	3.4	
Educational Services	  	8	  	2.1	  	 	11,974	  	2.0	  	279	  	1.5	
Transportation Equipment	  	3	  	0.8	  	 	10,394	  	1.8	  	325	  	1.8	
Other	  	160	  	41.1	  	 	94,187	  	16.0	  	3,323	  	18.5	
 	  	 	  	 	  	 	 	  	 	  	 	  	 	
Total	  	389	  	100.0	  	$	586,205	  	100.0	  	18,198	  	100.0	

 
27

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INDUSTRIAL PROPERTIES	  	Location	  	Percent
Ownership (%)	  	Year Built	  	 	  	Real Estate Net
Book
Value ($’s in
thousands)	  	Rentable Square
Footage (in
thousands)	  	Percent
Leased (%)	
112 Hidden Lake Circle	  	Duncan, SC	  	100	  	1987	  	 	 	  	$	9,198	  	313.4	  	100.0	
110 Hidden Lake Circle	  	Duncan, SC	  	100	  	1987	  	 	 	  	 	13,408	  	473.4	  	36.8	
 	  	 	  	 	  	 	  	 	 	  	 	 	  	 	  	 	
 	  	 	  	 	  	 	  	 	 	  	$	22,606	  	786.8	  	61.9	

UNCONSOLIDATED
JOINT VENTURE PROPERTIES	  	Location	  	Percent
Ownership (%)	  	Year Built	  	Piedmont
Share of Real
Estate Net
Book Value
($’s in
thousands)	  	Real Estate
Net Book Value
($’s in
thousands)	  	Rentable Square
Footage (in
thousands)	  	Percent
Leased (%)	
14400 Hertz Quail Springs Parkway	  	Oklahoma City, OK	  	4	  	1997	  	$	151	  	$	4,101	  	57.2	  	100.0	
360 Interlocken	  	Broomfield, CO	  	4	  	1996	  	 	238	  	 	6,456	  	51.7	  	22.3	
47300 Kato Road	  	Fremont, CA	  	78	  	1982	  	 	2,684	  	 	3,464	  	58.4	  	0.0	
20/20 Building	  	Leawood, KS	  	57	  	1992	  	 	2,692	  	 	4,743	  	68.2	  	90.8	
4685 Investment Drive	  	Troy, MI	  	55	  	2000	  	 	5,262	  	 	9,565	  	77.1	  	100.0	
5301 Maryland Way	  	Brentwood, TN	  	55	  	1989	  	 	11,220	  	 	20,396	  	201.2	  	100.0	
8560 Upland Drive	  	Parker, CO	  	72	  	2001	  	 	7,786	  	 	10,830	  	148.2	  	100.0	
Two Park Center	  	Hoffman Estates, IL	  	72	  	1999	  	 	11,816	  	 	16,436	  	193.7	  	83.0	
 	  	 	  	 	  	 	  	 	 	  	 	 	  	 	  	 	
 	  	 	  	 	  	 	  	$	41,849	  	$	75,991	  	855.7	  	83.9	

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

STRUCTURED FINANCE	  	Location	  	 	  	 	  	 	  	Book Value
($’s  in
thousands)	  	 	  	 	
Mezzanine Loan (1)	  	Chicago, IL	  	 	  	 	  	 	 	  	$	48,054	  	 	  	 	
Mezzanine Loan (1)	  	Chicago, IL	  	 	  	 	  	 	 	  	 	12,047	  	 	  	 	
 	  	 	  	 	  	 	  	 	 	  	 	 	  	 	  	 	
 	  	 	  	 	  	 	  	 	 	  	$	60,101	  	 	  	 	

(1)	Secured by a pledge of the equity interest of the entity owning a 46-story, Class A commercial office building located in downtown Chicago.	
 
28

Piedmont Office Realty Trust, Inc.
Supplemental Definitions

Included in this section are management’s statements regarding certain non-GAAP financial measures provided in this supplemental package and reasons why management believes that these measures provide useful information to investors about the Company’s financial condition and results of operations. Reconciliations of these non-GAAP measures are presented on pages 32-35.
Adjusted Funds From Operations (“AFFO”): AFFO is calculated by deducting from Core FFO non-incremental capital expenditures and adding back non-cash items including non-real estate depreciation, straight lined rents and fair value lease revenue, non-cash components of interest expense and compensation expense, and by making similar adjustments for unconsolidated partnerships and joint ventures. Although AFFO may not be comparable to that of other REITs, we believe it provides a meaningful indicator of our ability to fund cash needs and to make cash distributions to equity owners. AFFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating performance to net income, as an alternative to net cash flows from operating activities or as a measure of our liquidity.
Annualized Lease Revenue (“ALR”): ALR is calculated by multiplying (i) rental payments (defined as base rent plus operating expenses, if payable by the tenant on a monthly basis under the terms of a lease that have been executed, but excluding rental abatements and rental payments related to executed but not commenced leases for space that was covered by an existing lease), by (ii) 12. In instances in which contractual rents and operating expenses are collected on an annual, semi-annual, or quarterly basis, such amounts are multiplied by a factor of 1, 2, or 4, respectively, to calculate the annualized figure. For leases that have been executed but not commenced relating to un-leased space, ALR is calculated by multiplying (i) monthly base rental payments for the initial month of the lease term, by (ii) 12. Unless stated otherwise, this measure excludes our industrial properties and unconsolidated joint venture interests.
Core EBITDA: Core EBITDA is defined as net income before interest, taxes, depreciation and amortization and incrementally adding back any impairment losses and other extraordinary items. We do not include impairment losses in this measure because we feel these types of losses create volatility in our earnings and make it difficult to determine the earnings generated by our ongoing business. We believe Core EBITDA is a reasonable measure of our liquidity. Core EBITDA is a non-GAAP financial measure and should not be viewed as an alternative measurement of cash flows from operating activities or liquidity. Other REITs may calculate Core EBITDA differently and our calculation should not be compared to that of other REITs.
Core Funds From Operations (“Core FFO”): We calculate Core FFO by starting with FFO, as defined by NAREIT, and adjust for certain non-recurring items such as impairment losses and other extraordinary items. Such items create significant earnings volatility. We believe Core FFO provides a meaningful measure of our operating performance and more predictability regarding future earnings potential. Core FFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating performance to net income; therefore, it should not be compared to other REITs’ equivalent to Core FFO.
Core Net Operating Income (“Core NOI”): Core NOI is defined as real estate operating income with the add-back of corporate general and administrative expense, depreciation and amortization, and casualty and impairment losses and the deduction of income and expense associated with lease terminations. We present this measure on an accrual basis and a cash basis, which eliminates the effects of straight lined rents and fair value lease revenue. The company uses this measure to assess its operating results and believes it is important in assessing operating performance. Core NOI is a non-GAAP measure which does not have any standard meaning prescribed by GAAP and therefore may not be comparable to similar measures presented by other companies.
EBITDA: EBITDA is defined as net income before interest, taxes, depreciation and amortization. We believe EBITDA is an appropriate measure of our ability to incur and service debt. EBITDA should not be considered as an alternative to cash flows from operating activities, as a measure of our liquidity or as an alternative to net income as an indicator of our operating activities. Other REITs may calculate EBITDA differently and our calculation should not be compared to that of other REITs.
Funds From Operations (“FFO”): FFO is calculated in accordance with the current National Association of Real Estate Investment Trusts (“NAREIT”) definition. NAREIT currently defines FFO as net income (computed in accordance with GAAP), excluding gains or losses from sales of property, plus depreciation and amortization on real estate assets, and after the same adjustments for unconsolidated partnerships and joint ventures. Such factors can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates. FFO may provide valuable comparisons of operating performance between periods and with other REITs. FFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating performance to net income. We believe that FFO is a beneficial indicator of the performance of an equity REIT. However, other REITs may not define FFO in accordance with the NAREIT definition, or may interpret the current NAREIT definition differently than we do; therefore, our computation of FFO may not be comparable to that of such other REITs.
Incremental Capital Expenditures: Incremental Capital Expenditures are defined as capital expenditures of a non-recurring nature that incrementally enhance the underlying assets’ income generating capacity. Tenant improvements, leasing commissions, building capital and deferred lease incentives incurred to lease space that was dark at acquisition, improvements associated with the expansion of a building and renovations that change the underlying classification of a building are included in this measure.
 
29

Piedmont Office Realty Trust, Inc.
Supplemental Definitions

NOI from Unconsolidated Joint Ventures: NOI from Unconsolidated Joint Ventures is defined as Core NOI attributable to our interest in eight properties owned through unconsolidated partnerships. We present this measure on a cash basis which eliminates the effects of straight lined rents and fair value lease revenue. NOI from Unconsolidated Joint Ventures is a non-GAAP measure and therefore may not be comparable to similarly defined data provided by other REITs.
Non-Incremental Capital Expenditures: Non-Incremental Capital Expenditures are defined as capital expenditures of a recurring nature related to tenant improvements and leasing commissions that do not incrementally enhance the underlying assets’ income generating capacity. We exclude first generation tenant improvements and leasing commissions from this measure.
Same Store NOI: Same Store NOI is calculated as the Core NOI attributable to the properties owned or placed in service during the entire span of the current and prior year reporting periods. Same Store NOI excludes amounts attributable to industrial properties. We present this measure on an accrual basis and a cash basis, which eliminates the effects of straight lined rents and fair value lease revenue. We believe Same Store NOI is an important measure of comparison of our stabilized properties’ operating performance. Other REITs may calculate Same Store NOI differently and our calculation should not be compared to that of other REITs.
Same Store Properties: Same Store Properties is defined as properties owned or placed in service during the entire span of the current and prior year reporting periods. Same Store Properties excludes industrial properties. We believe Same Store Properties is an important measure of comparison of our stabilized portfolio performance.
 
30

Piedmont Office Realty Trust, Inc.
Research Coverage

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

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	 	Six Months Ended	 	
 	  	6/30/2010	 	 	3/31/2010	 	 	12/31/2009	 	 	9/30/2009	 	 	6/30/2009	 	 	6/30/2010	 	 	6/30/2009	 	
Net income attributable to Piedmont	  	$	19,636	  	 	$	31,460	  	 	$	25,946	  	 	$	(8,260	) 	 	$	27,976	  	 	$	51,096	  	 	$	57,014	  	
 	 	 	 	 	 	 	 	
Non-controlling interest	  	 	125	  	 	 	126	  	 	 	119	  	 	 	121	  	 	 	120	  	 	 	251	  	 	 	238	  	
Interest expense	  	 	18,933	  	 	 	19,091	  	 	 	19,488	  	 	 	19,518	  	 	 	19,394	  	 	 	38,024	  	 	 	38,736	  	
Depreciation	  	 	26,050	  	 	 	26,428	  	 	 	27,434	  	 	 	27,159	  	 	 	26,927	  	 	 	52,479	  	 	 	52,917	  	
Amortization	  	 	11,104	  	 	 	11,487	  	 	 	16,273	  	 	 	14,095	  	 	 	13,797	  	 	 	22,592	  	 	 	27,339	  	
Impairment loss on real estate assets	  	 	9,587	  	 	 	—  	  	 	 	—  	  	 	 	37,633	  	 	 	—  	  	 	 	9,587	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core EBITDA	  	 	85,435	  	 	 	88,592	  	 	 	89,260	  	 	 	90,266	  	 	 	88,214	  	 	 	174,029	  	 	 	176,244	  	
 	 	 	 	 	 	 	 	
General & administrative expenses	  	 	7,993	  	 	 	6,696	  	 	 	6,297	  	 	 	5,757	  	 	 	8,102	  	 	 	14,689	  	 	 	15,505	  	
Management fee revenue	  	 	(705	) 	 	 	(753	) 	 	 	(928	) 	 	 	(742	) 	 	 	(744	) 	 	 	(1,458	) 	 	 	(1,441	) 	
Interest and other income	  	 	(1,036	) 	 	 	(969	) 	 	 	(652	) 	 	 	(1,989	) 	 	 	(1,147	) 	 	 	(2,005	) 	 	 	(1,809	) 	
Lease termination income	  	 	(479	) 	 	 	(496	) 	 	 	(1,982	) 	 	 	—  	  	 	 	(782	) 	 	 	(975	) 	 	 	(781	) 	
Lease termination expense - straight line rent & acquisition intangibles write-offs	  	 	679	  	 	 	67	  	 	 	552	  	 	 	627	  	 	 	174	  	 	 	746	  	 	 	174	  	
Straight line rent adjustment	  	 	(1,462	) 	 	 	1,006	  	 	 	(2,619	) 	 	 	(1,508	) 	 	 	(1,378	) 	 	 	(457	) 	 	 	1,318	  	
Net effect of amortization of above/(below) market in-place lease intangibles	  	 	(1,525	) 	 	 	(1,426	) 	 	 	(1,212	) 	 	 	(1,249	) 	 	 	(1,247	) 	 	 	(2,952	) 	 	 	(2,477	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core net operating income	  	 	88,900	  	 	 	92,717	  	 	 	88,716	  	 	 	91,162	  	 	 	91,192	  	 	 	181,617	  	 	 	186,733	  	
 	 	 	 	 	 	 	 	
Acquisitions	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
Industrial properties	  	 	(91	) 	 	 	(273	) 	 	 	(638	) 	 	 	(638	) 	 	 	(642	) 	 	 	(365	) 	 	 	(1,282	) 	
Unconsolidated joint ventures	  	 	(1,187	) 	 	 	(1,268	) 	 	 	(1,156	) 	 	 	(1,171	) 	 	 	(1,275	) 	 	 	(2,453	) 	 	 	(2,467	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Same Store NOI	  	$	87,622	  	 	$	91,176	  	 	$	86,922	  	 	$	89,353	  	 	$	89,275	  	 	$	178,799	  	 	$	182,984	  	

32

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	 	Six Months Ended	 	
 	  	6/30/2010	 	 	3/31/2010	 	 	12/31/2009	 	 	9/30/2009	 	 	6/30/2009	 	 	6/30/2010	 	 	6/30/2009	 	
NET INCOME/ (LOSS) ATTRIBUTABLE TO PIEDMONT	  	$	19,636	  	 	$	31,460	  	 	$	25,946	  	 	 	($ 8,260	) 	 	$	27,976	  	 	$	51,096	  	 	$	57,014	  	
 	 	 	 	 	 	 	 	
Depreciation	  	 	25,872	  	 	 	26,250	  	 	 	27,263	  	 	 	27,004	  	 	 	26,773	  	 	 	52,122	  	 	 	52,611	  	
Amortization	  	 	11,104	  	 	 	11,487	  	 	 	16,273	  	 	 	14,095	  	 	 	13,797	  	 	 	22,592	  	 	 	27,339	  	

FUNDS FROM OPERATIONS (FFO)	  	$	56,612	  	 	$	69,197	  	 	$	69,482	  	 	$	32,839	  	 	$	68,546	  	 	$	125,810	  	 	$	136,964	  	

Impairment loss	  	 	9,587	  	 	 	0	  	 	 	0	  	 	 	37,633	  	 	 	0	  	 	 	9,587	  	 	 	0	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
CORE FUNDS FROM OPERATIONS	  	$	66,199	  	 	$	69,197	  	 	$	69,482	  	 	$	70,472	  	 	$	68,546	  	 	$	135,397	  	 	$	136,964	  	

Depreciation of non real estate assets	  	 	178	  	 	 	178	  	 	 	171	  	 	 	155	  	 	 	154	  	 	 	357	  	 	 	306	  	
Stock-based and other non-cash compensation expense	  	 	711	  	 	 	653	  	 	 	671	  	 	 	671	  	 	 	831	  	 	 	1,364	  	 	 	1,835	  	
Deferred financing cost amortization	  	 	696	  	 	 	696	  	 	 	696	  	 	 	696	  	 	 	685	  	 	 	1,392	  	 	 	1,394	  	
Straight-line effects of lease revenue	  	 	(784	) 	 	 	1,073	  	 	 	(1,619	) 	 	 	(846	) 	 	 	(1,227	) 	 	 	289	  	 	 	1,469	  	
Amortization of lease related intangibles	  	 	(1,525	) 	 	 	(1,426	) 	 	 	(1,663	) 	 	 	(1,283	) 	 	 	(1,223	) 	 	 	(2,951	) 	 	 	(2,453	) 	
Income from amortization of discount on purchase of mezzanine loans	  	 	(694	) 	 	 	(668	) 	 	 	(334	) 	 	 	(648	) 	 	 	(929	) 	 	 	(1,362	) 	 	 	(1,296	) 	
 	 	 	 	 	 	 	 	
Non-incremental capital expenditures	  	 	(12,752	) 	 	 	(8,966	) 	 	 	(18,893	) 	 	 	(8,065	) 	 	 	(7,394	) 	 	 	(21,718	) 	 	 	(18,804	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
ADJUSTED FUNDS FROM OPERATIONS	  	$	52,029	  	 	$	60,737	  	 	$	48,511	  	 	$	61,152	  	 	$	59,443	  	 	$	112,768	  	 	$	119,415	  	

33

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	 	Six Months Ended	 	
 	  	6/30/2010	 	 	3/31/2010	 	 	12/31/2009	 	 	9/30/2009	 	 	6/30/2009	 	 	6/30/2010	 	 	6/30/2009	 	
Equity in Income of Unconsolidated JVs	  	$	647	  	 	$	737	  	 	$	672	  	 	($	1,985	) 	 	$	754	  	 	$	1,384	  	 	$	1,417	  	
 	 	 	 	 	 	 	 	
Interest expense	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation	  	 	337	  	 	 	348	  	 	 	344	  	 	 	367	  	 	 	366	  	 	 	685	  	 	 	727	  	
Amortization	  	 	101	  	 	 	101	  	 	 	101	  	 	 	104	  	 	 	102	  	 	 	202	  	 	 	203	  	
Impairment loss	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	2,570	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core EBITDA	  	 	1,085	  	 	 	1,186	  	 	 	1,117	  	 	 	1,056	  	 	 	1,222	  	 	 	2,271	  	 	 	2,347	  	
 	 	 	 	 	 	 	 	
General & administrative expenses	  	 	39	  	 	 	66	  	 	 	71	  	 	 	56	  	 	 	7	  	 	 	105	  	 	 	38	  	
 	 	 	 	 	 	 	 	
Interest and other income	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	

Core net operating income (accrual basis)	  	 	1,124	  	 	 	1,252	  	 	 	1,188	  	 	 	1,112	  	 	 	1,229	  	 	 	2,376	  	 	 	2,385	  	
Straight-line effects of lease revenue	  	 	64	  	 	 	17	  	 	 	(31	) 	 	 	60	  	 	 	47	  	 	 	80	  	 	 	85	  	
Net effect of amortization of above/(below) market in-place lease intangibles	  	 	(1	) 	 	 	(1	) 	 	 	(1	) 	 	 	(1	) 	 	 	(1	) 	 	 	(3	) 	 	 	(3	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core net operating income (cash basis)	  	$	1,187	  	 	$	1,268	  	 	$	1,156	  	 	$	1,171	  	 	$	1,275	  	 	$	2,453	  	 	$	2,467	  	

34

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	  	Six Months Ended	
 	  	6/30/2010	 	 	3/31/2010	 	 	12/31/2009	  	9/30/2009	  	6/30/2009	  	6/30/2010	 	 	6/30/2009	
Revenues:	  	 	 	 	 	 	 	 	 	 	 	  	 	 	  	 	 	  	 	 	 	 	 	 	
Rental income	  	$	1,594	  	 	$	1,595	  	 	$	1,594	  	$	1,595	  	$	1,594	  	$	3,189	  	 	$	3,188	
Tenant reimbursements	  	 	—  	  	 	 	(2	) 	 	 	—  	  	 	2	  	 	—  	  	 	(2	) 	 	 	—  	
Property management fee revenue	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	—  	  	 	—  	  	 	—  	  	 	 	—  	
Other rental income	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	—  	  	 	—  	  	 	—  	  	 	 	—  	
 	  	 	 	 	 	 	 	 	 	 	 	  	 	 	  	 	 	  	 	 	 	 	 	 	
Total revenues	  	 	1,594	  	 	 	1,593	  	 	 	1,594	  	 	1,597	  	 	1,594	  	 	3,187	  	 	 	3,188	
 	 	 	 	 	 	 	 	
Operating expenses:	  	 	 	 	 	 	 	 	 	 	 	  	 	 	  	 	 	  	 	 	 	 	 	 	
Property operating costs	  	 	8	  	 	 	9	  	 	 	19	  	 	26	  	 	13	  	 	17	  	 	 	55	
Depreciation	  	 	130	  	 	 	389	  	 	 	389	  	 	389	  	 	389	  	 	519	  	 	 	778	
Amortization	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	—  	  	 	—  	  	 	—  	  	 	 	—  	
General and administrative	  	 	2	  	 	 	10	  	 	 	7	  	 	45	  	 	18	  	 	12	  	 	 	26	
 	  	 	 	 	 	 	 	 	 	 	 	  	 	 	  	 	 	  	 	 	 	 	 	 	
Total operating expenses	  	 	140	  	 	 	408	  	 	 	415	  	 	460	  	 	420	  	 	548	  	 	 	859	

Operating income, excluding impairment loss	  	 	1,454	  	 	 	1,185	  	 	 	1,179	  	 	1,137	  	 	1,174	  	 	2,639	  	 	 	2,329	
 	 	 	 	 	 	 	 	
Impairment loss	  	 	(9,587	) 	 	 	—  	  	 	 	—  	  	 	—  	  	 	—  	  	 	(9,587	) 	 	 	—  	

(Loss)/income from discontinued operations	  	$	(8,133	) 	 	$	1,185	  	 	$	1,179	  	$	1,137	  	$	1,174	  	$	(6,948	) 	 	$	2,329	

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

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