UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported)	 	              May 5, 2011	
Piedmont Office Realty Trust, Inc.
 
(Exact Name of Registrant as Specified in Charter)

Maryland	  	001-34626	  	58-2328421	
(State or Other Jurisdiction	  	(Commission	  	(IRS Employer	
of Incorporation)	  	File Number)	  	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 May 5, 2011, Piedmont Office Realty Trust, Inc. (the “Registrant”) issued a press release announcing its financial results for the first quarter 2011, and published supplemental information for the first quarter 2011 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 May 5, 2011.	
99.2	    	Piedmont Office Realty Trust, Inc. Quarterly Supplemental Information for the First Quarter 2011.	
 
2

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

 	 	PIEDMONT OFFICE REALTY TRUST, INC.	  	 	
 	 	(Registrant)	  	 	
 	 	 	 	
 	 	By:	    	/s/ Robert E. Bowers	  	 	
 	 	 	    	Robert E. Bowers	  	 	
 	 	 	    	Chief Financial Officer and Executive Vice President	  	 	
Date: May 5, 2011
 
3

EXHIBIT INDEX

Exhibit No.	    	Description                                                                                  	
99.1	    	Press release dated May 5, 2011.	
99.2	    	Piedmont Office Realty Trust, Inc. Quarterly Supplemental Information for the First Quarter 2011.	
 
4

Exhibit 99.1

Piedmont Office Realty Trust Reports First Quarter Results
ATLANTA, May 5, 2011 — Piedmont Office Realty Trust, Inc. (“Piedmont” or the “Company”) (NYSE:PDM), an owner of primarily Class A properties located predominantly in the ten largest U.S. office markets, today announced its results for the quarter ended March 31, 2011.
Highlights for the Three Months Ended March 31, 2011:
 
 	—	 	Achieved funds from operations (“FFO”) of $0.41 per diluted share;	
 
 	—	 	Completed approximately 843,000 square feet of leasing at the Company’s 77 consolidated office properties, including 616,000 square feet of renewal leases and 227,000 square feet of new leases;	
 
 	—	 	Purchased a 150,000 square-foot building located at 1200 Enclave Parkway in the prestigious Energy Corridor of Houston, TX and acquired through foreclosure a 46-story, 962,000-square-foot, Class A office building located at 500 West Monroe Street in Chicago, IL;	
 
 	—	 	Completed the largest lease negotiation in the Company’s history - a 597,253 square-foot, 15-year renewal with the National Aeronautics and Space Administration (“NASA”) at Two Independence Square in Washington, D.C.; and	
 
 	—	 	Converted the final tranche of Class B common stock to Class A common stock on January 30, 2011 so that all shares of the Company’s common stock are now traded on the New York Stock Exchange.	
Donald A. Miller, CFA, President and Chief Executive Officer, stated, “The first quarter of 2011 evidenced growing leasing momentum and transactional activity for Piedmont as we executed almost 850,000 square feet of leases, including the largest-ever single tenant lease negotiation in Piedmont’s history, acquired two Class A buildings with potential for accretion in our opportunistic markets and laid the groundwork for recycling opportunities in some of our non-core markets. Our leverage remains low and we are poised to continue to deploy capital as appropriate over the next several quarters.”
Results for the First Quarter ended March 31, 2011:
Despite over $0.01 in dilution as a result of the 13.8 million shares issued in our February 2010 public offering, Piedmont’s net income available to common stockholders was $34.0 million, or $0.20 per diluted share, for the first quarter of 2011, compared with $31.5 million, or $0.19 per diluted share, for the first quarter 2010. FFO totaled $71.3 million, or $0.41 per diluted share, for

the current quarter, as compared to $69.2 million, or $0.42 per diluted share, for the quarter ended March 31, 2010. Adjusted FFO (“AFFO”) for the first quarter of 2011 totaled $52.0 million, or $0.30 per diluted share, as compared to $60.3 million, or $0.36 per diluted share, in the first quarter of 2010.
Revenues for the quarter ended March 31, 2011 totaled $146.6 million compared to $146.8 million in the same period a year ago. Property operating expenses were $55.0 million in the first quarter of 2011 compared to $55.4 million in the first quarter of 2010. Same store net operating income (on a cash basis) for the quarter was $88.3 million compared to $89.5 million for the quarter ended March 31, 2010.
Leasing Update
During the first quarter of 2011, the Company executed 843,000 square feet of office leasing throughout its markets. Of the leases signed during the quarter, 616,000 square feet or 73 percent was renewal related and 227,000 square feet or 27 percent was with new tenants. Our portfolio was 89.2 percent leased on a same store basis as of March 31, 2011 as compared to 89.3 percent leased as of March 31, 2010, reflecting stability in our same store portfolio. The Company’s overall office portfolio was 87.3 percent leased as of March 31, 2011, with a weighted average lease term remaining of 6.2 years. The Company’s overall leased percentage decreased 190 basis points from December 31, 2010, primarily as the result of the recent acquisitions of 1200 Enclave Parkway in Houston (18 percent leased) and 500 West Monroe Street in Chicago (67 percent leased). The Company is actively managing its upcoming lease expirations including several large 2011 and 2012 lease expirations.
A detailed presentation of the Company’s leasing activity can be found on pages 6 and 21 of Piedmont’s quarterly supplemental reporting package.
Capital Markets and Financing Activities
As previously communicated, Piedmont added two Class A properties to its portfolio during the first quarter. On March 30, 2011, Piedmont purchased a 150,000 square-foot building located at 1200 Enclave Parkway in the Energy Corridor of Houston, TX and, on March 31, 2011, Piedmont acquired, through a UCC foreclosure auction, the equity ownership of a 46-story, approximately 962,000-square-foot, Class A office building located at 500 West Monroe Street in Chicago, IL.
As a result of the above acquisitions, Piedmont’s gross assets increased to $5.5 billion as of March 31, 2011. Total debt increased to $1.6 billion as of March 31, 2011 as a result of $183.6 million of debt recorded during the quarter in conjunction with the consolidation of the 500 West Monroe Street Building. Consequently, the Company’s total debt-to-gross assets ratio was 29.2 percent as of March 31, 2011 as compared with 26.6 percent as of December 31, 2010. Net debt to annualized core EBITDA ratio was 4.3 times and the Company’s fixed charge coverage ratio was 5.2 times. As of March 31, 2011, Piedmont had cash and capacity on its unsecured line of

credit of approximately $505 million.
Subsequent to Quarter End
Acquisitions and Dispositions
On April 21, 2011, the Company entered into a binding contract to sell its office property known as Eastpointe Corporate Center, located in suburban Seattle, for approximately $32 million with an anticipated closing date of July 1, 2011.
On April 29, 2011, the Company purchased, for $20.45 million, a 14 year-old, Class A, six-story office building containing approximately 138,000 rentable square feet located in Atlanta, GA. This building, the Dupree Building, was obtained through an off-market transaction and is 83% leased.
Dividend
On May 4, 2011, the Board of Directors of Piedmont declared a dividend for the second quarter of 2011 in the amount of $0.315 per common share outstanding to stockholders of record as of the close of business on June 1, 2011. The dividend is expected to be paid on June 22, 2011.
Guidance for 2011
The Company reiterates financial guidance for full-year 2011 based on management’s expectations as follows:

 	  	Low	  	 	 	  	High	  	 	 	
Net Income	  	$106	  	 	—	  	  	118	  	 	Million	  	
 	 	 	 	 	
Add: Depreciation & Amortization	  	$150	  	 	—	  	  	156	  	 	Million	  	
Core FFO	  	$256	  	 	—	  	  	269	  	 	Million	  	
Core FFO per diluted share	  	$1.48	  	 	—	  	  	1.56	  	 	 	 	
These estimates reflect management’s view of current market conditions and incorporate certain economic and operational assumptions and projections. These estimates exclude future acquisitions and dispositions which could result in a change in the Company’s 2011 outlook and guidance when they are consummated. Actual results could differ from these estimates. Note that individual quarters may fluctuate on both a cash basis and an accrual basis due to timing of repairs and maintenance, capital expenditures, capital markets activities and one-time revenue or expense events. In addition, the Company’s guidance is based on information available to management as of the date of this release.
Non-GAAP Financial Measures

This release contains certain supplemental non-GAAP financial measures such as FFO, AFFO, Core FFO, Same store net operating income, and Core EBITDA. See below for definitions and reconciliations of these metrics to their most comparable GAAP metric.
Conference Call Information
Piedmont has scheduled a conference call and an audio webcast for Friday, May 6, 2011 at 10:00 A.M. Eastern Time. The live audio webcast of the call may be accessed on the Company’s website at www.piedmontreit.com in the Investor Relations section. Dial-in numbers are 1-877-407-4018 for participants in the United States and 1-201-689-8471 for international participants. The conference identification number is 370839. A replay of the conference call will be available until May 20, 2011, and can be accessed by dialing 1-877-870-5176 or 1-858-384-5517 for international participants, followed by passcode 370839. A webcast replay will also be available after the conference call in the Investor Relations section of the Company’s website. During the audio webcast and conference call, the Company’s management team will review first quarter 2011 performance, discuss recent events, and conduct a question-and-answer period.
Supplemental Information
Quarterly Supplemental Information as of and for the three months ended March 31, 2011 can be accessed on the Company’s website under the Investor Relations section at www.piedmontreit.com.
About Piedmont Office Realty Trust
Piedmont Office Realty Trust, Inc. is a fully-integrated and self-managed real estate investment trust (“REIT”) specializing in the acquisition, ownership, management, development and disposition of primarily high-quality Class A office buildings located predominantly in large U.S. office markets and leased principally to high-credit-quality tenants. Since its first acquisition in 1998, the Company has acquired approximately $5.8 billion of office and industrial properties. Rated as an investment-grade company by Standard & Poor’s and Moody’s, Piedmont has maintained a low-leverage strategy while acquiring its properties.
 
Forward Looking Statements
Certain statements contained in this press release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company intends for all such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, as applicable. Such information is subject to certain risks and uncertainties, as well as known and unknown risks, which could cause actual results to differ

materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of the Company’s performance in future periods. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “continue” or similar words or phrases that are predictions of future events or trends and which do not relate solely to historical matters. Examples of such statements in this press release include the Company’s leasing and transaction momentum and prospects; the Company’s accretive and capital recycling opportunities; the Company’s ability to deploy capital in the coming quarters; the Company’s ability to consummate the disposition of Eastpointe Corporate Center and 360 Interlocken Boulevard; and the Company’s estimated range of Net Income, Depreciation and Amortization, Core FFO and Core FFO per diluted share for the year ending December 31, 2011.
The following are some of the factors that could cause the Company’s actual results and its expectations to differ materially from those described in the Company’s forward-looking statements: the Company’s ability to successfully identify and consummate suitable acquisitions; current adverse market and economic conditions; lease terminations or lease defaults, particularly by one of the Company’s large lead tenants; the impact of competition on the Company’s efforts to renew existing leases or re-let space; changes in the economies and other conditions of the office market in general and of the specific markets in which the Company operates; economic and regulatory changes; additional risks and costs associated with directly managing properties occupied by government tenants; adverse market and economic conditions and related impairments to the Company’s assets, including, but not limited to, receivables, real estate assets and other intangible assets; the success of the Company’s real estate strategies and investment objectives; availability of financing; costs of complying with governmental laws and regulations; uncertainties associated with environmental and other regulatory matters; the Company’s ability to continue to qualify as a REIT under the Internal Revenue Code; the impact of outstanding or potential litigation; and other factors detailed in the Company’s most recent Annual Report on Form 10-K for the period ended December 31, 2010, and other documents the Company files with the Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company cannot guarantee the accuracy of any such forward-looking statements contained in this press release, and the Company does not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Research Analysts Contact:
Eddie Guilbert
770-418-8592
research.analysts@piedmontreit.com
Investor Relations Firm Contact:
ICR Inc.
Evelyn Infurna
203-682-8346
Evelyn.infurna@icrinc.com
 
Transfer Agent Services Contact:
The Bank of New York Mellon
866-354-3485
investor.services@piedmontreit.com

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

 
 	 	 	 	 	 	 	 	 	
 	  	March 31, 2011	 	 	December 31, 2010	 	
 	 	 	
Assets:	  	 	 	 	 	 	 	 	
Real estate assets, at cost:	  	 	 	 	 	 	 	 	
Land	  	$	688,103	  	 	$	647,653	  	
Buildings and improvements	  	 	3,865,239	  	 	 	3,688,751	  	
Buildings and improvements, accumulated depreciation	  	 	(770,147	) 	 	 	(744,756	) 	
Intangible lease asset	  	 	238,504	  	 	 	219,770	  	
Intangible lease asset, accumulated amortization	  	 	(142,754	) 	 	 	(145,742	) 	
Construction in progress	  	 	13,142	  	 	 	11,152	  	
 	  	 	 	 	 	 	 	 	
Total real estate assets	  	 	3,892,087	  	 	 	3,676,828	  	
 	 	 	
Investment in unconsolidated joint ventures	  	 	41,759	  	 	 	42,018	  	
Cash and cash equivalents	  	 	42,151	  	 	 	56,718	  	
Tenant receivables, net of allowance for doubtful accounts	  	 	29,726	  	 	 	28,849	  	
Straight line rent receivable	  	 	103,854	  	 	 	105,157	  	
Notes receivable	  	 	-    	  	 	 	61,144	  	
Due from unconsolidated joint ventures	  	 	594	  	 	 	1,158	  	
Restricted cash and escrows	  	 	30,771	  	 	 	12,475	  	
Prepaid expenses and other assets	  	 	11,967	  	 	 	11,249	  	
Goodwill	  	 	180,097	  	 	 	180,097	  	
Deferred financing costs, less accumulated amortization	  	 	5,374	  	 	 	5,306	  	
Deferred lease costs, less accumulated amortization	  	 	224,892	  	 	 	192,481	  	
 	  	 	 	 	 	 	 	 	
Total assets	  	$	4,563,272	  	 	$	4,373,480	  	

Liabilities:	  	 	 	 	 	 	 	 	
Line of credit and notes payable (net of discounts of $1,413 and $0 as of March 31, 2011 and December 31, 2010, respectively)	  	$	1,601,112	  	 	$	1,402,525	  	
Accounts payable, accrued expenses, and accrued capital expenditures	  	 	122,769	  	 	 	112,648	  	
Deferred income	  	 	38,990	  	 	 	35,203	  	
Intangible lease liabilities, less accumulated amortization	  	 	46,517	  	 	 	48,959	  	
Interest rate swap	  	 	367	  	 	 	691	  	
 	  	 	 	 	 	 	 	 	
Total liabilities	  	 	1,809,755	  	 	 	1,600,026	  	
 	 	 	
Stockholders’ equity :	  	 	 	 	 	 	 	 	
Class A common stock	  	 	1,727	  	 	 	1,330	  	
Class B-1 common stock	  	 	-    	  	 	 	-    	  	
Class B-2 common stock	  	 	-    	  	 	 	-    	  	
Class B-3 common stock	  	 	-    	  	 	 	397	  	
Additional paid in capital	  	 	3,661,570	  	 	 	3,661,308	  	
Cumulative distributions in excess of earnings	  	 	(915,543	) 	 	 	(895,122	) 	
Other comprehensive loss	  	 	(465	) 	 	 	(691	) 	
 	  	 	 	 	 	 	 	 	
Piedmont stockholders’ equity	  	 	2,747,289	  	 	 	2,767,222	  	
Non-controlling interest	  	 	6,228	  	 	 	6,232	  	
 	  	 	 	 	 	 	 	 	
Total stockholders’ equity	  	 	2,753,517	  	 	 	2,773,454	  	
 	  	 	 	 	 	 	 	 	
Total liabilities, redeemable common stock and stockholders’ equity	  	$	4,563,272	  	 	$	4,373,480	  	

Net Debt (Gross debt less cash and cash equivalents and restricted cash and escrows)	  	$	1,529,603	  	 	$	1,333,332	  	
Total Gross Assets (1)	  	$	5,476,173	  	 	$	5,263,978	  	
 	 	 	
Number of shares of all classes of common stock outstanding at end of period	  	 	172,658	  	 	 	172,658	  	
 
(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	 	
 	  	3/31/2011	 	 	3/31/2010	 	
 	 	 	
Revenues:	  	 	 	 	 	 	 	 	
Rental income	  	$	109,830	  	 	$	110,512	  	
Tenant reimbursements	  	 	32,490	  	 	 	35,083	  	
Property management fee revenue	  	 	830	  	 	 	753	  	
Other rental income	  	 	3,404	  	 	 	496	  	
 	  	 	 	 	 	 	 	 	
Total revenues	  	 	146,554	  	 	 	146,844	  	
 	 	 	
Operating expenses:	  	 	 	 	 	 	 	 	
Property operating costs	  	 	54,957	  	 	 	55,361	  	
Depreciation	  	 	27,022	  	 	 	25,691	  	
Amortization	  	 	12,076	  	 	 	11,387	  	
General and administrative	  	 	6,824	  	 	 	6,620	  	
 	  	 	 	 	 	 	 	 	
Total operating expenses	  	 	100,879	  	 	 	99,059	  	

Real estate operating income	  	 	45,675	  	 	 	47,785	  	
 	 	 	
Other income (expense):	  	 	 	 	 	 	 	 	
Interest expense	  	 	(17,174	) 	 	 	(19,091	) 	
Interest and other income	  	 	3,460	  	 	 	969	  	
Equity in income of unconsolidated joint ventures	  	 	209	  	 	 	737	  	
Gain on consolidation of a variable interest entity	  	 	1,920	  	 	 	-    	  	
 	  	 	 	 	 	 	 	 	
Total other income (expense)	  	 	(11,585	) 	 	 	(17,385	) 	

Income from continuing operations	  	 	34,090	  	 	 	30,400	  	
 	 	 	
Operating income	  	 	-    	  	 	 	1,185	  	
 	  	 	 	 	 	 	 	 	
Discontinued operations	  	 	-    	  	 	 	1,185	  	

Net income	  	 	34,090	  	 	 	31,585	  	
 	 	 	
Less: Net income attributable to noncontrolling interest	  	 	(123	) 	 	 	(125	) 	

Net income attributable to Piedmont	  	$	33,967	  	 	$	31,460	  	

Weighted average common shares outstanding - diluted	  	 	172,955	  	 	 	165,200	  	
 	 	 	
Net income per share available to common stockholders - diluted	  	$	0.20	  	 	$	0.19	  	

 

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

 
 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	
 	  	3/31/2011	 	 	3/31/2010	 	
 	 	 	
Net income attributable to Piedmont	  	$	33,967	  	 	$	31,460	  	
 	 	 	
Depreciation (1) (2)	  	 	27,154	  	 	 	26,250	  	
Amortization (1)	  	 	12,106	  	 	 	11,488	  	
 
Gain on consolidation of variable interest entity	  	 	(1,920	) 	 	 	-	  	
 	  	 	 	 	 	 	 	 	
Funds from operations	  	 	71,307	  	 	 	69,198	  	
 	 	 	
Acquisition costs	  	 	(26	) 	 	 	-	  	
 	  	 	 	 	 	 	 	 	
Core funds from operations	  	 	71,281	  	 	 	69,198	  	
 	 	 	
Depreciation of non real estate assets	  	 	170	  	 	 	178	  	
Stock-based and other non-cash compensation expense	  	 	968	  	 	 	653	  	
Deferred financing cost amortization	  	 	607	  	 	 	696	  	
Straight-line effects of lease revenue (1)	  	 	2,237	  	 	 	1,073	  	
Amortization of lease-related intangibles (1)	  	 	(1,362	) 	 	 	(1,426	) 	
Income from amortization of discount on purchase of mezzanine loans	  	 	(484	) 	 	 	(668	) 	
Acquisition costs	  	 	26	  	 	 	 	 	
Non-incremental capital expenditures(3)	  	 	(21,469	) 	 	 	(9,413	) 	
 	  	 	 	 	 	 	 	 	
Adjusted funds from operations	  	$	51,974	  	 	$	60,291	  	

Weighted average common shares outstanding - diluted	  	 	172,955	  	 	 	165,200	  	
 	 	 	
Funds from operations per share (diluted)	  	$	0.41	  	 	$	0.42	  	
Core funds from operations per share (diluted)	  	$	0.41	  	 	$	0.42	  	
Adjusted funds from operations per share (diluted)	  	$	0.30	  	 	$	0.36	  	

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

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

 
 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	
 	  	3/31/2011	 	 	3/31/2010	 	
 	 	 	
Net income attributable to Piedmont	  	$	33,967	  	 	$	 31,460	  	
 	 	 	
Net income attributable to non-controlling interest	  	 	123	  	 	 	125	  	
Interest Expense	  	 	17,174	  	 	 	19,091	  	
Depreciation(1)	  	 	27,324	  	 	 	26,428	  	
Amortization(1)	  	 	12,106	  	 	 	11,488	  	
Gain on consolidation of variable interest entity	  	 	(1,920	) 	 	 	-    	  	
 	  	 	 	 	 	 	 	 	
Core EBITDA*	  	 	88,774	  	 	 	88,592	  	
 	 	 	
General & administrative expenses(1)	  	 	6,899	  	 	 	6,696	  	
Management fee revenue	  	 	(830	) 	 	 	(753	) 	
Interest and other income	  	 	(3,460	) 	 	 	(969	) 	
Lease termination income	  	 	(3,404	) 	 	 	(496	) 	
Lease termination expense - straight line rent & acquisition intangibles write-offs	  	 	436	  	 	 	67	  	
Straight line rent adjustment(1)	  	 	1,972	  	 	 	1,006	  	
Net effect of amortization of below-market in-place lease intangibles(1)	  	 	(1,534	) 	 	 	(1,426	) 	
 	  	 	 	 	 	 	 	 	
Core net operating income (cash basis)*	  	 	88,853	  	 	 	92,717	  	
 	 	 	
Acquisitions	  	 	354	  	 	 	-	  	
Dispositions	  	 	-	  	 	 	(1,681	) 	
Industrial properties	  	 	(239	) 	 	 	(273	) 	
Unconsolidated joint ventures	  	 	(658	) 	 	 	(1,268	) 	

Same Store NOI*	  	$	88,310	  	 	$	89,495	  	

Year over Year change in same store NOI	  	 	-1.3%	  	 	 	 	 	
 	 	 	
Fixed Charge Coverage Ratio (Core EBITDA/ Interest Expense)(2)	  	 	5.2	  	 	 	 	 	
Annualized Core EBITDA (Core EBITDA x 4)	  	$	355,096	  	 	 	 	 	

(1)	Includes adjustments for wholly-owned properties and for our proportionate ownership in unconsolidated joint ventures.	
(2) 	Piedmont had no capitalized interest, principal amortization or preferred dividends for any of the periods presented.	
*Definitions
Core EBITDA: Defined as net income before interest, taxes, depreciation and amortization and incrementally removing any impairment losses, gains or losses from sales of property, or other extraordinary items. We do not include impairment losses in this measure because we feel these types of losses create volatility in our earnings and make it difficult to determine the earnings generated by our ongoing business. We believe Core EBITDA is a reasonable measure of our liquidity. Core EBITDA is a non-GAAP financial measure and should not be viewed as an alternative measurement of cash flows from operating activities or other GAAP basis liquidity measures. Other REITs may calculate Core EBITDA differently and our calculation should not be compared to that of other REITs.
Core net operating income (“Core NOI”): Core NOI is defined as real estate operating income with the add-back of corporate general and administrative expense, depreciation and amortization, and casualty and impairment losses and the deduction of income and expense associated with lease terminations and income associated with property management performed by Piedmont for other organizations. We present this measure on a cash basis, which eliminates the effects of straight lined rents and fair value lease revenue. The company uses this measure to assess its operating results and believes it is important in assessing operating performance. Core NOI is a non-GAAP measure which does not have any standard meaning prescribed by GAAP and therefore may not be comparable to similar measures presented by other companies.
Same store net operating income (“Same Store NOI”): Same Store NOI is calculated as the Core NOI attributable to the properties owned or placed in service during the entire span of the current and prior year reporting periods. Same Store NOI excludes amounts attributable to industrial properties. We present this measure on a cash basis, which eliminates the effects of straight lined rents and fair value lease revenue. We believe Same Store NOI is an important measure of comparison of our stabilized properties’ operating performance. Other REITs may calculate Same Store NOI differently and our calculation should not be compared to that of other REITs.

Exhibit 99.2

Quarterly Supplemental Information
March 31, 2011

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

investor.services@piedmontreit.com
www.piedmontreit.com	

Piedmont Office Realty Trust, Inc.
Quarterly Supplemental Information
Index

 
 	 	 	 	 	
 	  	Page	 	
 	 	
Introduction	  	 	 	 	
Corporate Data	  	 	3	  	
Investor Information	  	 	4	  	
Financial Highlights	  	 	5-7	  	
Key Performance Indicators	  	 	8	  	
 	 	
Financials	  	 	 	 	
Balance Sheet	  	 	9	  	
Income Statements	  	 	10-11	  	
Funds From Operations / Adjusted Funds From Operations	  	 	12	  	
Same Store Analysis	  	 	13-14	  	
Capitalization Analysis	  	 	15	  	
Debt Summary	  	 	16	  	
Debt Detail	  	 	17	  	
Debt Analysis	  	 	18	  	
 	 	
Operational & Portfolio Information - Office Investments	  	 	 	 	
Tenant Diversification	  	 	19	  	
Tenant Credit Rating & Lease Distribution Information	  	 	20	  	
Leasing Activity	  	 	21	  	
Lease Expiration Schedule	  	 	22	  	
Annual Lease Expirations	  	 	23	  	
Capital Expenditures & Commitments	  	 	24	  	
Contractual Tenant Improvements & Leasing Commissions	  	 	25	  	
Geographic Diversification	  	 	26	  	
Industry Diversification	  	 	27	  	
Property Investment Activity	  	 	28	  	
 	 	
Other Investments	  	 	 	 	
Other Investments Detail	  	 	29	  	
 	 	
Supporting Information	  	 	 	 	
Definitions	  	 	30-31	  	
Research Coverage	  	 	32	  	
Non-GAAP Reconciliations & Other Detail	  	 	33-36	  	
Risks, Uncertainties and Limitations	  	 	37	  	

Please refer to page 37 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 predominantly in large U.S. office markets and leased principally to high-credit-quality tenants. Since its first acquisition in 1998, the Company has acquired $5.8 billion of office and industrial properties (inclusive of joint ventures) through March 31, 2011. Rated as an investment-grade company by Standard & Poor’s and Moody’s, Piedmont has maintained a low-leverage strategy while acquiring its properties. Approximately 83% of our Annualized Lease Revenue (“ALR”) (1)  is derived from our office properties located within the ten largest U.S. office markets, including Chicago, Washington, D.C., the New York metropolitan area, Boston and greater Los Angeles.
This data supplements the information provided in our reports filed with the Securities and Exchange Commission.

 	  	As of
    March 31, 2011    	 	  	As of
    December 31, 2010    	 	
 	 	 	
Number of properties (2)	  	 	77	  	  	 	75	  	
 	 	 	
Rentable square footage (in thousands) (2)	  	 	21,516	  	  	 	20,408	  	
 	 	 	
Percent leased (3)	  	 	87.3%	  	  	 	89.2%	  	
 	 	 	
Capitalization (in thousands):	  	 	 	 	  	 	 	 	
 	 	 	
Total gross debt - principal amount outstanding	  	 	$1,602,525	  	  	 	$1,402,525	  	
 	 	 	
Equity market capitalization (4)	  	 	$3,351,301	  	  	 	$3,477,342	  	
 	 	 	
Total market capitalization (4)	  	 	$4,953,826	  	  	 	$4,879,867	  	
 	 	 	
Total gross debt / Total market capitalization (4)	  	 	32.3%	  	  	 	28.7%	  	
 	 	 	
Common stock data	  	 	 	 	  	 	 	 	
 	 	 	
High closing price during quarter (4)	  	 	$20.55	  	  	 	$20.31	  	
 	 	 	
Low closing price during quarter (4)	  	 	$18.69	  	  	 	$18.25	  	
 	 	 	
Closing price of Class A common stock at period end (4)	  	 	$19.41	  	  	 	$20.14	  	
 	 	 	
Weighted average fully diluted shares outstanding (in thousands) (5) (6)	  	 	172,955	  	  	 	170,967	  	
 	 	 	
Shares of common stock issued and outstanding (in thousands)	  	 	172,658	  	  	 	172,658	  	
 	 	 	
Rating / outlook	  	 	 	 	  	 	 	 	
 	 	 	
Standard & Poor’s	  	 	BBB / Stable	  	  	 	BBB / Stable	  	
Moody’s	  	 	Baa2 / Stable	  	  	 	Baa2 / Stable	  	
 	 	 	
Employees (7)	  	 	111	  	  	 	110	  	

(1) 	The definition for Annualized Lease Revenue can be found on page 30.	
(2) 	Our office portfolio currently consists of 77 properties (exclusive of our equity interests in seven properties owned through unconsolidated joint ventures and our two industrial properties). During the first quarter of 2011, we acquired a 150,000 square foot building located at 1200 Enclave Parkway in Houston, TX and a 962,000 square foot building located at 500 West Monroe Street in Chicago, IL.	
(3) 	Calculated as leased square footage on March 31, 2011 plus square footage associated with executed new leases for currently vacant spaces divided by total rentable square footage, expressed as a percentage. This measure is presented for our 77 office properties and excludes industrial and unconsolidated joint venture properties. Piedmont has completed several acquisitions and one disposition during the previous year; excluding the assets related to such investing activity from the leased percentage analysis, Piedmont’s portfolio was 89.2% leased as of March 31, 2011, as compared to the same store leased percentage of 89.3% in the year earlier period. Please refer to page 21 for additional detail regarding the same store leased percentage comparison to first quarter 2010.	
(4) 	As of December 31, 2010, our Class B-3 common stock was not listed on a national securities exchange and there was no established market for such shares. We have used the closing price of the Class A common stock at the relevant period end for the purposes of the calculations regarding market capitalization herein.	
(5) 	Weighted average fully diluted shares outstanding are presented on a year-to-date basis for each period.	
(6) 	In conjunction with our February 10, 2010 listing on the New York Stock Exchange, we issued 13.8 million additional shares of Class A common stock, the primary reason for the difference in weighted average fully diluted shares outstanding.	
(7) 	During the first quarter of 2011, the company hired a regional manager for its New York, NY office. The opening of this office is the reason for the increase in number of employees.	
 
3

Piedmont Office Realty Trust, Inc.
Investor Information

Corporate
 
11695 Johns Creek Parkway, Suite 350, Johns Creek, Georgia 30097
770.418.8800
www.piedmontreit.com

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

Transfer Agent	    	Corporate Counsel	
 	 	
Bank of New York Mellon Shareowner Services	    	King & Spalding	
P.O. Box 358010	    	1180 Peachtree Street, NE	
Pittsburgh, PA 15252-8010	    	Atlanta, GA 30309	
Phone: 866.354.3485	    	Phone: 404.572.4600	
 
4

 	
Piedmont Office Realty Trust, Inc.
Financial Highlights
As of March 31, 2011	

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. Class B-1 common stock converted automatically into Class A common stock on August 9, 2010; Class B-2 common stock converted automatically into Class A common stock on November 7, 2010; and Class B-3 common stock converted automatically into Class A common stock on January 30, 2011.

Financial Results (1)	  	 	
 	-	Funds from operations (FFO) and core funds from operations (Core FFO) for the quarter ended March 31, 2011 were both $71.3M, or $0.41 per share (diluted), compared to $69.2M, or $0.42 per share (diluted), for both measures for the same quarter in 2010. The increase in FFO and Core FFO for the three months ended March 31, 2011 as compared to the same period in 2010 was primarily due to higher termination income as well as default interest and residual net operating income deferred from prior periods and recognized upon the successful foreclosure of the equity ownership interest of 500 West Monroe Street. Additionally contributing to the increase in FFO and Core FFO was a decreased interest rate on the $250 million term loan resulting in lower interest expense. These positive variances are offset somewhat by lower tenant reimbursements. The decrease in per share amount for both FFO and Core FFO for the three months ended March 31, 2011 as compared to the same period in 2010 was primarily due to the dilutive effect of the 13.8 million shares of Class A common stock issued when the Company listed on the NYSE in February 2010.	
 
 	-	Adjusted funds from operations (AFFO) for the quarter ended March 31, 2011 was $52.0M, or $0.30 per share (diluted), compared to $60.3M, or $0.36 per share (diluted), for the same quarter in 2010. The decrease in AFFO for the three months ended March 31, 2011 as compared to the same period in 2010 was primarily due to increased capital expenditures in 2011 associated with new leasing activity, including $6.6 million in leasing commissions related to the NASA lease renewal at Two Independence Square and $3.6 million in tenant improvements for State Street Bank at 1200 Crown Colony Drive. The per share amount of AFFO was also lower in 2011 as compared to 2010 due to the dilutive effect of the 13.8 million shares of Class A common stock issued when the Company listed on the NYSE in February 2010.	
 
 	-	During the quarter ended March 31, 2011, the Company paid to shareholders a quarterly dividend in the amount of $0.315 per share for its Class A common stock, which represented its only outstanding class of common stock. The Company’s dividend payout percentage for the three months ended March 31, 2011 was 76.3% of Core FFO and 104.6% of AFFO.	

Operations	  	 	
 	-	On a same store square footage leased basis, our portfolio was 89.2% leased as of March 31, 2011 as compared to 89.3% leased as of March 31, 2010, reflecting stability in our same store portfolio. On a square footage basis, our office portfolio was 87.3% leased as of March 31, 2011, as compared to 89.2% as of December 31, 2010 and 89.6% as of March 31, 2010. The decrease in the office portfolio leased percentage during the last year is primarily related to the addition to the portfolio of 1.6 million square feet through the acquisition of several properties with existing vacancies, including 500 West Monroe Street in Chicago, IL, 1200 Enclave Parkway in Houston, TX, and Suwanee Gateway One in Suwanee, GA.	
 
 	-	The weighted average remaining lease term of our portfolio was 6.2 years(2) as of March 31, 2011 as compared to 5.8 years at December 31, 2010.	
 
 	-	During the three months ended March 31, 2011, the Company completed 843,000 square feet of leasing at our 77 consolidated office properties. We executed renewal leases for 616,000 square feet and new tenant leases for 227,000 square feet, with an average committed capital cost of $5.82 per square foot per year of lease term. Average committed capital cost per square foot per year of lease term for renewal leases signed during the quarter was $5.48 and average committed capital cost per square foot per year of lease term for new leases was $7.39. We did not execute any new leases during the quarter for our two industrial properties.	
 
 	-	During the three months ended March 31, 2011, we retained(3) tenants for 72% of the square footage associated with expiring leases. This result compares to a 72% retention rate for the year ended December 31, 2010.	

(1) FFO, Core FFO and AFFO are supplemental non-GAAP financial measures. See pages 30-31 for definitions of non-GAAP financial measures. See pages 12 and 35 for reconciliations of FFO, Core FFO and AFFO to Net Income.
(2) Remaining lease term (after taking into account leases for vacant spaces which had been executed but not commenced as of March 31, 2011) is weighted based on Annualized Lease Revenue, as defined on page 30.
(3) Piedmont defines a retained tenant to include an existing tenant/occupant signing a lease for the premises it currently occupies or a tenant whose occupancy of a space is structured in a way to eliminate downtime for the space.
 
5

Piedmont Office Realty Trust, Inc.
Financial Highlights
As of March 31, 2011

 
 	-	During the three months ended March 31, 2011, we executed six office leases greater than 20,000 square feet. Please see information on those leases listed below.	

Tenant Name	  	Property	  	Property Location	  	Square Feet
Leased	  	Expiration Year	  	Lease Type	
United States of America (NASA)	  	Two Independence Square	  	Washington, D.C.	  	597,253	  	2027	  	Renewal	
BSH Home Appliances
Corporation	  	1901 Main Street	  	Irvine, CA	  	49,781	  	2019	  	New	
Eide Bailly, LLP	  	US Bancorp Center	  	Minneapolis, MN	  	40,622	  	2024	  	New	
First Solar Electric, LLC	  	400 Bridgewater Crossing	  	Bridgewater, NJ	  	39,096	  	2018	  	New	
Evraz, Inc.	  	Aon Center	  	Chicago, IL	  	34,868	  	2023	  	New	
Faurecia USA Holdings, Inc.	  	Auburn Hills Corporate Center	  	Auburn Hills, MI	  	21,670	  	2015	  	New	

Leasing Update	  	 	
 
 	-	As of year-end 2010, a total of six leases were scheduled to expire during the years 2011 and 2012 that contributed greater than 1% of Annualized Lease Revenue. Due to the addition of 500 West Monroe Street to our office portfolio during the first quarter of 2011, there are two additional leases that contribute greater than 1% of Annualized Lease Revenue that are scheduled to expire in 2011 and 2012. Information regarding the leasing status of the spaces associated with those leases is included below:	

Tenant Name	  	Property	  	Property Location	  	Square
Footage  (1)	  	Percentage of Current
Quarter Annualized
Lease Revenue (%)	 	Expiration (2)	  	Leasing Status	
United States of
America (Comptroller of the Currency)	  	One Independence
Square	  	Washington, D.C.	  	322,984	  	3.0%	 	Q2 2011	  	The Company is in discussions with the tenant for a lease renewal of the entire space. The tenant has announced its future intentions to leave the building; therefore, a short-term renewal of the lease for up to 24 months is anticipated.	
 	 	 	 	 	 	 	
Zurich American Insurance Company	  	Windy Point II	  	Schaumburg, IL	  	300,034	  	1.7%	 	Q3 2011	  	The space has been substantially sublet by the tenant. The Company is in discussions with sublessees for direct leases and actively marketing the space for lease.	
 	 	 	 	 	 	 	
Kirkland & Ellis	  	Aon Center	  	Chicago, IL	  	331,887	  	1.7%	 	Q4 2011	  	Kirkland & Ellis is vacating. KPMG has leased 218,123 SF (beginning in August 2012), all but 3,000 SF of which is space currently leased to Kirkland & Ellis.	
 	 	 	 	 	 	 	
Marsh USA	  	500 West Monroe

Street	  	Chicago, IL	  	173,290	  	1.2%	 	Q4 2011	  	The Company is not actively engaged in discussions with the tenant regarding a lease renewal. It is anticipated that the tenant will vacate at lease expiration.	
 	 	 	 	 	 	 	
Sanofi-aventis US	  	200 Bridgewater

Crossing	  	Bridgewater, NJ	  	297,379	  	2.0%	 	Q1 2012	  	The Company is actively marketing the space for lease. The tenant will be vacating at lease expiration.	
 	 	 	 	 	 	 	
United States of
America (NASA)	  	Two Independence
Square	  	Washington, D.C.	  	551,907	  	4.3%	 	Q3 2027	  	A 15-year lease was signed with the tenant during the quarter for 597,253 SF, an approximate 8% increase in square footage leased due to a BOMA space remeasurement.	
 	 	 	 	 	 	 	
United States of
America (National Park
Service)	  	1201 Eye Street	  	Washington, D.C.	  	219,750	  	1.6%	 	Q3 2012	  	Preliminary discussions with the tenant have commenced.	
 	 	 	 	 	 	 	
GE	  	500 West Monroe
Street	  	Chicago, IL	  	311,387	  	1.8%	 	Q4 2012	  	The Company is in discussions with the tenant for a long-term lease renewal which includes a reduction in leased square footage.	

(1) Square footage represents the total square footage leased by the tenant expiring during the expiration quarter.
(2) 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 March 31, 2011

 
 	 	 	
Financing and Capital Activity	  	 	
 	-	As of March 31, 2011, our ratio of gross debt to total market capitalization was 32.3%; our ratio of gross debt to gross real estate assets was 33.4%; and our ratio of gross debt to total gross assets was 29.3%. These debt ratios reflect the inclusion of $185 million of secured debt attributable to 500 West Monroe Street and are based on total principal amount outstanding for our various loans.	
 
 	-	On March 30, 2011, Piedmont completed the purchase of 1200 Enclave Parkway, a 150,000 square foot building located in the prestigious Energy Corridor in Houston, TX. The building was built in 1999 and is 18% leased. Piedmont purchased the building for $18.5 million, or approximately $123 per square foot. The building is located near another property owned by Piedmont, 1430 Enclave Parkway. Given the location, management’s knowledge of the market, the high-quality construction, and the low cost basis, Piedmont expects to create value for its shareholders through the lease-up of this building.	
 
 	-	On March 31, 2011, a UCC foreclosure auction was conducted to sell an equity ownership interest in 500 West Monroe Street that had been pledged as collateral for a defaulted mezzanine loan owned by Piedmont. Piedmont was the winning bidder at that auction and, therefore, became the equity owner of 500 West Monroe Street. The building is a 46-story, 962,000 square foot, Class A, trophy office tower located in Chicago’s West Loop submarket. It was built in 1991 and is currently 67% leased. The two main tenants in the building, GE and Marsh USA, which, combined, lease approximately 50% of the building, have leases with near-term expirations as noted above. Piedmont is committed to stabilizing the occupancy in this well-located, high-quality, amenity-rich building. The building is ideally located between two major transportation centers, Union Station and Ogilvie Transportation Center, in addition to having a 1,330-space parking garage; both of these elements positively impact the leasing potential for this building.	
 
 	-	On January 30, 2011, Piedmont’s 39.7 million shares of Class B-3 common stock converted on a one-for-one basis into Class A common stock.	
 
 	-	On February 24, 2011, the board of directors of Piedmont declared dividends for the first quarter 2011 in the amount of $0.315 per share on its Class A common stock, which represented its only outstanding class of common stock, to stockholders of record as of the close of business on March 7, 2011. The dividends were paid on March 22, 2011.	
 
 	-	Effective January 10, 2011, Bank of New York Mellon became Piedmont’s transfer agent.	

Subsequent Events	  	 	
 	-	Piedmont has entered into a binding contract to sell Eastpointe Corporate Center in Issaquah, WA. As of April 21, 2011, the purchaser had completed its due diligence study of the asset and its deposit of 5% of the agreed upon purchase price of $32.0 million became non-refundable. Piedmont anticipates recording a gain upon the sale of the building. The transaction is scheduled to close on July 1, 2011. The building is currently approximately 43% leased and will become 19% leased after the end of the second quarter of 2011 due to the expiration of an additional lease. Through the sale, Piedmont will be able to mitigate the leasing risk associated with this building and further its strategic objective of focusing on select markets. Piedmont has reclassified Eastpointe Corporate Center from real estate assets held-for-use to real estate assets held-for-sale as of April 21, 2011. The results from operations for the asset will be presented in discontinued operations beginning in the second quarter of 2011.	
 
 	-	On April 29, 2011, Piedmont purchased The Dupree Building, a 138,000 square foot building located in Atlanta, GA, for approximately $20.5 million, or $148 per square foot. The building is well-located along the northern arc of I-285, a major bypass expressway encircling Atlanta, with close proximity to GA-400, a major state highway connecting downtown Atlanta with the city’s northern suburbs, as well as executive housing. The building was constructed in 1997, is approximately 83% leased, and is located near Piedmont’s Glenridge Highlands II building. Given the ease of access to the building, Piedmont’s intimate knowledge of the market, the low cost basis, and the long-term nature of the existing leases, Piedmont believes the transaction provides a strong risk-adjusted return for its shareholders.	
 
 	-	On May 4, 2011, the board of directors of Piedmont declared a dividend for the second quarter 2011 in the amount of $0.315 per share on its Class A common stock to stockholders of record as of the close of business on June 1, 2011. The dividend is expected to be paid on June 22, 2011.	

Guidance for 2011	  	 	
 	-	The following financial guidance for calendar year 2011 remains unchanged and is based on management’s expectations at this time:	

 	  	Low      High	
Net Income	  	$106  - 118 million	
Add: Depreciation & Amortization	  	$150  - 156 million	
Core Funds from Operations	  	$256  - 269 million	
Core Funds from Operations per diluted share	  	$1.48 - 1.56	
These estimates reflect management’s view of current market conditions and incorporate certain economic and operational assumptions and projections. These estimates exclude future acquisitions and dispositions which could result in a change in the Company’s 2011 outlook and guidance when they are consummated. Actual results could differ from these estimates. Note that individual quarters may fluctuate on both a cash and an accrual basis due to timing of repairs and maintenance, capital expenditures, capital markets activities and one-time revenue or expense events. In addition, the Company’s guidance is based on information available to management as of the date of this supplemental report.
 
7

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

This section of our supplemental report includes non-GAAP financial measures, including, but not limited to, Core Earnings Before Interest, Taxes, Depreciation, and Amortization (Core EBITDA), Funds from Operations (FFO), Core Funds from Operations (Core FFO), and Adjusted Funds from Operations (AFFO). Definitions of these non-GAAP measures are provided on pages 30-31 and reconciliations are provided on pages 33-35.

 	 	 	  	Three Months Ended	 	
Selected Operating Data	  	3/31/2011	 	  	12/31/2010	 	  	9/30/2010	 	  	6/30/2010	 	  	3/31/2010	 	
 	 	 	 	 	 	 	
 	 	Percent leased (1)	  	 	87.3%	  	  	 	89.2%	  	  	 	89.0%	  	  	 	89.8%	  	  	 	89.6%	  	
 	 	 	 	 	 	 	
 	 	Rental income	  	 	$109,830	  	  	 	$110,778	  	  	 	$110,776	  	  	 	$110,623	  	  	 	$110,512	  	
 	 	 	 	 	 	 	
 	 	Total revenues	  	 	$146,554	  	  	 	$151,312	  	  	 	$145,502	  	  	 	$145,181	  	  	 	$146,844	  	
 	 	 	 	 	 	 	
 	 	Total operating expenses	  	 	$100,879	  	  	 	$106,433	  	  	 	$90,447	  	  	 	$100,037	  	  	 	$99,059	  	
 	 	 	 	 	 	 	
 	 	Real estate operating income	  	 	$45,675	  	  	 	$44,879	  	  	 	$55,055	  	  	 	$45,144	  	  	 	$47,785	  	
 	 	 	 	 	 	 	
 	 	Impairment losses on real estate assets (2)	  	 	$0	  	  	 	$0	  	  	 	$53	  	  	 	$9,587	  	  	 	$0	  	
 	 	 	 	 	 	 	
 	 	Core EBITDA (3)	  	 	$88,774	  	  	 	$85,610	  	  	 	$95,612	  	  	 	$85,435	  	  	 	$88,592	  	
 	 	 	 	 	 	 	
 	 	Core FFO	  	 	$71,281	  	  	 	$68,178	  	  	 	$78,229	  	  	 	$66,247	  	  	 	$69,198	  	
 	 	 	 	 	 	 	
 	 	Core FFO per share - diluted	  	 	$0.41	  	  	 	$0.39	  	  	 	$0.45	  	  	 	$0.38	  	  	 	$0.42	  	
 	 	 	 	 	 	 	
 	 	AFFO (3)	  	 	$51,974	  	  	 	$38,086	  	  	 	$61,468	  	  	 	$55,812	  	  	 	$60,291	  	
 	 	 	 	 	 	 	
 	 	AFFO per share - diluted	  	 	$0.30	  	  	 	$0.22	  	  	 	$0.36	  	  	 	$0.32	  	  	 	$0.36	  	
 	 	 	 	 	 	 	
 	 	Gross dividends	  	 	$54,387	  	  	 	$54,388	  	  	 	$54,388	  	  	 	$54,388	  	  	 	$53,777	  	
 	 	 	 	 	 	 	
 	 	Dividends per share	  	 	$0.315	  	  	 	$0.315	  	  	 	$0.315	  	  	 	$0.315	  	  	 	$0.315	  	
 	 	 	 	 	 	
Selected Balance Sheet Data	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
 	 	 	 	 	 	 	
 	 	Total real estate assets	  	 	$3,892,087	  	  	 	$3,676,828	  	  	 	$3,689,428	  	  	 	$3,704,757	  	  	 	$3,737,478	  	
 	 	 	 	 	 	 	
 	 	Total gross real estate assets	  	 	$4,804,988	  	  	 	$4,567,326	  	  	 	$4,573,622	  	  	 	$4,560,176	  	  	 	$4,571,837	  	
 	 	 	 	 	 	 	
 	 	Total assets	  	 	$4,563,272	  	  	 	$4,373,480	  	  	 	$4,389,585	  	  	 	$4,405,501	  	  	 	$4,428,410	  	
 	 	 	 	 	 	 	
 	 	Net debt (4)	  	 	$1,529,603	  	  	 	$1,333,332	  	  	 	$1,316,645	  	  	 	$1,312,116	  	  	 	$1,318,958	  	
 	 	 	 	 	 	 	
 	 	Total liabilities	  	 	$1,809,755	  	  	 	$1,600,026	  	  	 	$1,591,653	  	  	 	$1,594,278	  	  	 	$1,584,781	  	
 	 	 	 	 	 	
Ratios	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
 	 	 	 	 	 	 	
 	 	Core EBITDA margin (5)	  	 	60.6%	  	  	 	56.2%	  	  	 	65.0%	  	  	 	58.2%	  	  	 	59.7%	  	
 	 	 	 	 	 	 	
 	 	Fixed charge coverage ratio (6)	  	 	5.2 x	  	  	 	4.9 x	  	  	 	5.5 x	  	  	 	4.5 x	  	  	 	4.6 x	  	
 	 	 	 	 	 	 	
 	 	Net debt to core EBITDA (7)	  	 	4.3 x	  	  	 	3.9 x	  	  	 	3.4 x	  	  	 	3.8 x	  	  	 	3.7 x	  	

(1) Please refer to page 21 for additional leased percentage information.
(2) Impairment losses include losses for both wholly-owned and our proportionate share of unconsolidated joint venture assets.
(3) Core EBITDA and AFFO have been adjusted to exclude impairments on real estate assets as shown on pages 33 and 35.
(4) Net debt is calculated as the total principal amount of debt outstanding minus cash and cash equivalents and escrow deposits and restricted cash. As of the first quarter of 2011, net debt includes $185 million of secured debt associated with 500 West Monroe Street which was acquired March 31, 2011.
(5) Core EBITDA margin is calculated as Core EBITDA divided by total revenues (including revenues associated with discontinued operations).
(6) 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 any of the periods presented.
(7) Core EBITDA is annualized for the purposes of this calculation. As of the first quarter of 2011, net debt includes $185 million of secured debt associated with 500 West Monroe Street which was acquired March 31, 2011.
 
8

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

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	  March 31, 2011  	 	 	  December 31, 2010  	 	 	  September 30, 2010  	 	 	  June 30, 2010  	 	 	  March 31, 2010  	 	
Assets:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Real estate, at cost:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Land assets	 	  $	688,103	  	 	  $	647,653	  	 	  $	652,875	  	 	  $	651,876	  	 	  $	651,876	  	
Buildings and improvements	 	 	3,865,239	  	 	 	3,688,751	  	 	 	3,685,956	  	 	 	3,668,859	  	 	 	3,672,594	  	
Buildings and improvements, accumulated depreciation	 	 	(770,147	) 	 	 	(744,756	) 	 	 	(739,055	) 	 	 	(714,615	) 	 	 	(689,117	) 	
Intangible lease asset	 	 	238,504	  	 	 	219,770	  	 	 	222,952	  	 	 	224,532	  	 	 	235,022	  	
Intangible lease asset, accumulated amortization	 	 	(142,754	) 	 	 	(145,742	) 	 	 	(145,139	) 	 	 	(140,804	) 	 	 	(145,242	) 	
Construction in progress	 	 	13,142	  	 	 	11,152	  	 	 	11,839	  	 	 	14,909	  	 	 	12,345	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total real estate assets	 	 	3,892,087	  	 	 	3,676,828	  	 	 	3,689,428	  	 	 	3,704,757	  	 	 	3,737,478	  	
 	 	 	 	 	 	
Investment in unconsolidated joint ventures	 	 	41,759	  	 	 	42,018	  	 	 	42,591	  	 	 	43,005	  	 	 	43,482	  	
Cash and cash equivalents	 	 	42,151	  	 	 	56,718	  	 	 	67,539	  	 	 	81,066	  	 	 	76,994	  	
Tenant receivables, net of allowance for doubtful accounts	 	 	29,726	  	 	 	28,849	  	 	 	29,269	  	 	 	30,986	  	 	 	33,152	  	
Straight line rent receivable	 	 	103,854	  	 	 	105,157	  	 	 	100,751	  	 	 	96,912	  	 	 	95,164	  	
Notes receivable	 	 	-    	  	 	 	61,144	  	 	 	60,671	  	 	 	60,101	  	 	 	59,407	  	
Due from unconsolidated joint ventures	 	 	594	  	 	 	1,158	  	 	 	1,085	  	 	 	1,124	  	 	 	1,202	  	
Escrow deposits and restricted cash	 	 	30,771	  	 	 	12,475	  	 	 	18,341	  	 	 	9,343	  	 	 	6,573	  	
Prepaid expenses and other assets	 	 	11,967	  	 	 	11,249	  	 	 	18,461	  	 	 	15,523	  	 	 	12,027	  	
Goodwill	 	 	180,097	  	 	 	180,097	  	 	 	180,097	  	 	 	180,097	  	 	 	180,097	  	
Deferred financing costs, less accumulated amortization	 	 	5,374	  	 	 	5,306	  	 	 	5,878	  	 	 	6,467	  	 	 	6,509	  	
Deferred lease costs, less accumulated amortization	 	 	224,892	  	 	 	192,481	  	 	 	175,474	  	 	 	176,120	  	 	 	176,325	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total assets	 	  $	4,563,272	  	 	  $	4,373,480	  	 	  $	4,389,585	  	 	  $	4,405,501	  	 	  $	4,428,410	  	

Liabilities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Line of credit and notes payable	 	  $	1,601,112	  	 	  $	1,402,525	  	 	  $	1,402,525	  	 	  $	1,402,525	  	 	  $	1,402,525	  	
Accounts payable, accrued expenses, and accrued capital expenditures	 	 	122,769	  	 	 	112,648	  	 	 	102,411	  	 	 	102,365	  	 	 	83,172	  	
Deferred income	 	 	38,990	  	 	 	35,203	  	 	 	33,882	  	 	 	33,916	  	 	 	39,079	  	
Intangible lease liabilities, less accumulated amortization	 	 	46,517	  	 	 	48,959	  	 	 	51,807	  	 	 	54,730	  	 	 	57,689	  	
Interest rate swap	 	 	367	  	 	 	691	  	 	 	1,028	  	 	 	742	  	 	 	2,316	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities	 	 	1,809,755	  	 	 	1,600,026	  	 	 	1,591,653	  	 	 	1,594,278	  	 	 	1,584,781	  	
 	 	 	 	 	 	
Stockholders’ equity (1) :	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Class A common stock	 	 	1,727	  	 	 	1,330	  	 	 	932	  	 	 	536	  	 	 	534	  	
Class B-1 common stock	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	397	  	 	 	397	  	
Class B-2 common stock	 	 	-    	  	 	 	-    	  	 	 	397	  	 	 	397	  	 	 	397	  	
Class B-3 common stock	 	 	-    	  	 	 	397	  	 	 	397	  	 	 	397	  	 	 	397	  	
Additional paid in capital	 	 	3,661,570	  	 	 	3,661,308	  	 	 	3,660,551	  	 	 	3,659,910	  	 	 	3,659,257	  	
Cumulative distributions in excess of earnings	 	 	(915,543	) 	 	 	(895,122	) 	 	 	(869,434	) 	 	 	(855,631	) 	 	 	(820,878	) 	
Other comprehensive loss	 	 	(465	) 	 	 	(691	) 	 	 	(1,028	) 	 	 	(742	) 	 	 	(2,316	) 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Piedmont stockholders’ equity	 	 	2,747,289	  	 	 	2,767,222	  	 	 	2,791,815	  	 	 	2,805,264	  	 	 	2,837,788	  	
Non-controlling interest	 	 	6,228	  	 	 	6,232	  	 	 	6,117	  	 	 	5,959	  	 	 	5,841	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total stockholders’ equity	 	 	2,753,517	  	 	 	2,773,454	  	 	 	2,797,932	  	 	 	2,811,223	  	 	 	2,843,629	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities, redeemable common stock and stockholders’ equity	 	  $	4,563,272	  	 	  $	4,373,480	  	 	  $	4,389,585	  	 	  $	4,405,501	  	 	  $	4,428,410	  	

All classes of common stock outstanding at end of period  (1)	 	 	172,658	  	 	 	172,658	  	 	 	172,658	  	 	 	172,658	  	 	 	172,517	  	
 
(1) 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.
 
9

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	
 	 	 	 	 	
 	 	        3/31/2011        	 	 	    12/31/2010        	 	 	    9/30/2010        	 	 	    6/30/2010        	 	 	    3/31/2010        	 	

Revenues:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental income	 	  $	109,830 	  	 	$	110,778 	  	 	$	110,776 	  	 	$	110,623 	  	 	$	110,512   	  	
Tenant reimbursements	 	 	32,490 	  	 	 	36,997 	  	 	 	29,690 	  	 	 	33,374 	  	 	 	35,083   	  	
Property management fee revenue	 	 	830 	  	 	 	948 	  	 	 	806 	  	 	 	705 	  	 	 	753   	  	
Other rental income	 	 	3,404 	  	 	 	2,589 	  	 	 	4,230 	  	 	 	479 	  	 	 	496   	  	
 	 	 	 	 	
      Total revenues	 	 	146,554 	  	 	 	151,312 	  	 	 	145,502 	  	 	 	145,181 	  	 	 	146,844   	  	
 	 	 	 	 	 	
Operating expenses:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property operating costs	 	 	54,957 	  	 	 	60,401 	  	 	 	46,612 	  	 	 	55,497 	  	 	 	55,361   	  	
Depreciation	 	 	27,022 	  	 	 	26,685 	  	 	 	26,011 	  	 	 	25,584 	  	 	 	25,691   	  	
Amortization	 	 	12,076 	  	 	 	11,523 	  	 	 	11,018 	  	 	 	11,004 	  	 	 	11,387   	  	
General and administrative	 	 	6,824 	  	 	 	7,824 	  	 	 	6,806 	  	 	 	7,952 	  	 	 	6,620   	  	
 	 	 	 	 	
      Total operating expenses	 	 	100,879 	  	 	 	106,433 	  	 	 	90,447 	  	 	 	100,037 	  	 	 	99,059   	  	

Real estate operating income	 	 	45,675 	  	 	 	44,879 	  	 	 	55,055 	  	 	 	45,144 	  	 	 	47,785   	  	
 	 	 	 	 	 	
Other income (expense):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest expense	 	 	  (17,174)	  	 	 	(17,378)	  	 	 	(17,359)	  	 	 	(18,933)	  	 	 	(19,091)  	  	
Interest and other income	 	 	3,460 	  	 	 	491 	  	 	 	993 	  	 	 	1,036 	  	 	 	969   	  	
Equity in income of unconsolidated joint ventures	 	 	209 	  	 	 	630 	  	 	 	619 	  	 	 	647 	  	 	 	737   	  	
Gain on consolidation of variable interest entity	 	 	1,920 	  	 	 	-    	  	 	 	-     	  	 	 	-     	  	 	 	-       	  	
 	 	 	 	 	
      Total other income (expense)	 	 	(11,585)	  	 	 	(16,257)	  	 	 	(15,747)	  	 	 	(17,250)	  	 	 	(17,385)  	  	

Income from continuing operations	 	 	34,090 	  	 	 	28,622 	  	 	 	39,308 	  	 	 	27,894 	  	 	 	30,400   	  	
 	 	 	 	 	 	
Operating income, excluding impairment loss	 	 	-     	  	 	 	1,017 	  	 	 	1,434 	  	 	 	1,454 	  	 	 	1,185   	  	
Impairment loss	 	 	-     	  	 	 	-    	  	 	 	-     	  	 	 	(9,587)	  	 	 	-       	  	
Loss on sale of real estate assets	 	 	-     	  	 	 	(817)	  	 	 	-     	  	 	 	-     	  	 	 	-       	  	
 	 	 	 	 	
      Discontinued operations (1)	 	 	-     	  	 	 	200 	  	 	 	1,434 	  	 	 	(8,133)	  	 	 	1,185   	  	

Net income	 	 	34,090 	  	 	 	28,822 	  	 	 	40,742 	  	 	 	19,761 	  	 	 	31,585   	  	
 	 	 	 	 	 	
Less: Net income attributable to noncontrolling interest	 	 	(123)	  	 	 	(122)	  	 	 	(158)	  	 	 	(125)	  	 	 	(125)  	  	

Net income attributable to Piedmont	 	  $	33,967 	  	 	$	28,700 	  	 	$	40,584 	  	 	$	19,636 	  	 	$	31,460   	  	

Weighted average common shares outstanding - diluted	 	 	172,955 	  	 	 	172,996 	  	 	 	172,885 	  	 	 	172,718 	  	 	 	165,200   	  	
 	 	 	 	 	 	
Net income per share available to common stockholders - diluted	 	  $	0.20 	  	 	$	0.17 	  	 	$	0.23 	  	 	$	0.11 	  	 	$	0.19   	  	

 
(1) Reflects operating results for 111 Sylvan Avenue in Englewood Cliffs, NJ, which was sold on December 8, 2010.
 
10

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	
 	  	    3/31/2011    	 	 	    3/31/2010    	 	  	    Change    	 	 	    Change    	 	
 	 	 	 	 	
Revenues:	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Rental income	  	  $	109,830  	  	 	  $	110,512  	  	  	  $	(682) 	  	 	 	-0.6% 	  	
Tenant reimbursements	  	 	32,490  	  	 	 	35,083  	  	  	 	    (2,593) 	  	 	 	-7.4% 	  	
Property management fee revenue	  	 	830  	  	 	 	753  	  	  	 	77  	  	 	 	10.2% 	  	
      Other rental income	  	 	3,404  	  	 	 	496  	  	  	 	2,908  	  	 	 	586.3% 	  	
 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Total revenues	  	 	146,554  	  	 	 	146,844  	  	  	 	(290) 	  	 	 	-0.2% 	  	
 	 	 	 	 	
Operating expenses:	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Property operating costs	  	 	54,957  	  	 	 	55,361  	  	  	 	404  	  	 	 	0.7% 	  	
Depreciation	  	 	27,022  	  	 	 	25,691  	  	  	 	(1,331) 	  	 	 	-5.2% 	  	
Amortization	  	 	12,076  	  	 	 	11,387  	  	  	 	(689) 	  	 	 	-6.1% 	  	
General and administrative	  	 	6,824  	  	 	 	6,620  	  	  	 	(204) 	  	 	 	-3.1% 	  	
 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
      Total operating expenses	  	 	100,879  	  	 	 	99,059  	  	  	 	(1,820) 	  	 	 	-1.8% 	  	

Real estate operating income	  	 	45,675  	  	 	 	47,785  	  	  	 	(2,110) 	  	 	 	-4.4% 	  	
 	 	 	 	 	
Other income (expense):	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Interest expense	  	 	(17,174) 	  	 	 	    (19,091) 	  	  	 	1,917  	  	 	 	10.0% 	  	
Interest and other income	  	 	3,460  	  	 	 	969  	  	  	 	2,491  	  	 	 	257.1% 	  	
Equity in income of unconsolidated joint ventures	  	 	209  	  	 	 	737  	  	  	 	(528) 	  	 	 	-71.6% 	  	
Gain on consolidation of variable interest entity	  	 	1,920  	  	 	 	-      	  	  	 	1,920  	  	 	 	0.0% 	  	
 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
      Total other income (expense)	  	 	    (11,585) 	  	 	 	(17,385) 	  	  	 	5,800  	  	 	 	33.4% 	  	

Income from continuing operations	  	 	34,090  	  	 	 	30,400  	  	  	 	3,690  	  	 	 	12.1% 	  	
 	 	 	 	 	
Operating income, excluding impairment loss	  	 	-      	  	 	 	1,185  	  	  	 	(1,185) 	  	 	 	-100.0% 	  	
 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
      Discontinued operations (1)	  	 	-      	  	 	 	1,185  	  	  	 	(1,185) 	  	 	 	-100.0% 	  	

Net income	  	 	34,090  	  	 	 	31,585  	  	  	 	2,505  	  	 	 	7.9% 	  	
 	 	 	 	 	
Less: Net income attributable to noncontrolling interest	  	 	(123) 	  	 	 	(125) 	  	  	 	2  	  	 	 	1.6% 	  	

Net income attributable to Piedmont	  	  $	33,967  	  	 	  $	31,460  	  	  	  $	2,507  	  	 	 	8.0% 	  	

Weighted average common shares outstanding - diluted	  	 	172,955  	  	 	 	165,200  	  	  	 	 	 	 	 	 	 	
 	 	 	 	 	
Net income per share available to common stockholders - diluted	  	  $	0.20  	  	 	  $	0.19  	  	  	 	 	 	 	 	 	 	

 
(1) Reflects operating results for 111 Sylvan Avenue in Englewood Cliffs, NJ, which was sold on December 8, 2010.
 
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	 	
 	  	    3/31/2011    	 	  	    3/31/2010    	 	
 	 	 	
Net income attributable to Piedmont	  	  $	33,967  	  	  	  $	31,460  	  	
 	 	 	
      Depreciation (1) (2)	  	 	27,154  	  	  	 	26,250  	  	
      Amortization (1)	  	 	12,106  	  	  	 	11,488  	  	
      Gain on consolidation of VIE	  	 	(1,920) 	  	  	 	-      	  	

Funds from operations	  	 	71,307  	  	  	 	69,198  	  	
 	 	 	
      Acquisition costs	  	 	(26) 	  	  	 	-      	  	

Core funds from operations	  	 	71,281  	  	  	 	69,198  	  	
 	 	 	
      Depreciation of non real estate assets	  	 	170  	  	  	 	178  	  	
      Stock-based and other non-cash compensation expense	  	 	968  	  	  	 	653  	  	
      Deferred financing cost amortization	  	 	607  	  	  	 	696  	  	
      Straight-line effects of lease revenue (1)	  	 	2,237  	  	  	 	1,073  	  	
      Amortization of lease-related intangibles (1)	  	 	(1,362) 	  	  	 	(1,426) 	  	
      Income from amortization of discount on purchase of mezzanine loans	  	 	(484) 	  	  	 	(668) 	  	
      Acquisition costs	  	 	26  	  	  	 	-      	  	
      Non-incremental capital expenditures (3)	  	 	(21,469) 	  	  	 	(9,413) 	  	

Adjusted funds from operations	  	  $	51,974  	  	  	  $	60,291  	  	

Weighted average common shares outstanding - diluted	  	 	172,955  	  	  	 	165,200  	  	
 	 	 	
Funds from operations per share (diluted)	  	  $	0.41  	  	  	  $	0.42  	  	
Core funds from operations per share (diluted)	  	  $	0.41  	  	  	  $	0.42  	  	
Adjusted funds from operations per share (diluted)	  	  $	0.30  	  	  	  $	0.36  	  	

(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 31.
 
12

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

 
 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	
 	  	        3/31/2011        	 	  	        3/31/2010        	 	
 	 	 	
Net income attributable to Piedmont	  	  $	33,967  	  	  	  $	31,460  	  	
 	 	 	
Net income attributable to noncontrolling interest	  	 	123  	  	  	 	125  	  	
Interest expense	  	 	17,174  	  	  	 	19,091  	  	
Depreciation (1)	  	 	27,324  	  	  	 	26,428  	  	
Amortization (1)	  	 	12,106  	  	  	 	11,488  	  	
Gain on consolidation of VIE	  	 	(1,920) 	  	  	 	-      	  	
 	  	 	 	 	  	 	 	 	
Core EBITDA	  	 	88,774  	  	  	 	88,592  	  	
 	 	 	
General & administrative expenses (1)	  	 	6,899  	  	  	 	6,696  	  	
Management fee revenue	  	 	(830) 	  	  	 	(753) 	  	
Interest and other income	  	 	(3,460) 	  	  	 	(969) 	  	
Lease termination income	  	 	(3,404) 	  	  	 	(496) 	  	
Lease termination expense - straight line rent & acquisition intangibles write-offs	  	 	436  	  	  	 	67  	  	
Straight-line effects of lease revenue (1)	  	 	1,972  	  	  	 	1,006  	  	
Net effect of amortization of above/(below) market in-place lease intangibles (1)	  	 	(1,534) 	  	  	 	(1,426) 	  	
 	  	 	 	 	  	 	 	 	
Core net operating income	  	 	88,853  	  	  	 	92,717  	  	
 	 	 	
Net operating income from:	  	 	 	 	  	 	 	 	
Acquisitions (2)	  	 	354  	  	  	 	-  	  	
Dispositions (3)	  	 	-  	  	  	 	(1,681) 	  	
Industrial properties	  	 	(239) 	  	  	 	(273) 	  	
Unconsolidated joint ventures	  	 	(658) 	  	  	 	(1,268) 	  	
 	  	 	 	 	  	 	 	 	
Same Store NOI	  	  $	88,310  	  	  	  $	89,495  	  	
 	  	 	 	 	  	 	 	 	
Change period over period	  	 	-1.3%        	  	  	 	N/A      	  	

 	 	Same Store Net Operating Income
Top Seven Markets
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	
  	 	 	  	Three Months Ended	 	  	 	 	 	
 	 	 	  	3/31/2011	 	  	3/31/2010	 	  	 	 	 	 	
 	 	 	  	        $        	 	  	        %        	 	  	        $        	 	  	        %        	 	  	 	 	 	 	 	
 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	
 	 	Chicago (4)	  	  $	18,495	  	  	 	20.9  	  	  	$	17,748	  	  	 	19.8  	  	  	 	 	 	 	 	 	 	
 	 	Washington, D.C. (5)	  	 	18,024	  	  	 	20.4  	  	  	 	18,868	  	  	 	21.1  	  	  	 	 	 	 	 	 	 	 	
 	 	New York (6)	  	 	13,745	  	  	 	15.6  	  	  	 	12,036	  	  	 	13.4  	  	  	 	 	 	 	 	 	 	 	 	
 	 	Minneapolis	  	 	5,315	  	  	 	6.0  	  	  	 	5,257	  	  	 	5.9  	  	  	 	 	 	 	 	 	 	 	 	 	
 	 	Los Angeles (7)	  	 	3,789	  	  	 	4.3  	  	  	 	5,002	  	  	 	5.6  	  	  	 	 	 	 	 	 	 	 	 	 	 	
 	 	Dallas	  	 	3,821	  	  	 	4.3  	  	  	 	3,847	  	  	 	4.3  	  	  	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Boston	  	 	3,877	  	  	 	4.4  	  	  	 	3,729	  	  	 	4.2  	  	  	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Other (8)	  	 	21,244	  	  	 	24.1  	  	  	 	23,008	  	  	 	25.7  	  	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	      Total	  	  $	    88,310	  	  	 	100.0  	  	  	  $	    89,495	  	  	 	100.0  	  	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(1) Includes amounts attributable to wholly-owned properties, including discontinued operations, and our proportionate share of amounts attributable to unconsolidated joint ventures.
(2) Acquisitions consist of Suwanee Gateway One in Suwanee, GA, purchased on September 28, 2010, Meridian Crossings in Richfield, MN, purchased on October 1, 2010, 1200 Enclave Parkway in Houston, TX, purchased on March 30, 2011, and 500 West Monroe Street in Chicago, IL, acquired on March 31, 2011.
(3) Dispositions consists of 111 Sylvan Avenue in Englewood Cliffs, NJ, sold on December 8, 2010.
(4) The increase in Chicago Same Store Net Operating Income for the three months ended March 31, 2011 as compared to the same period in 2010 is primarily due to a rental abatement concession in 2010 associated with a lease renewal at Windy Point I in Schaumburg, IL.
(5) The decrease in Washington, D.C. Same Store Net Operating Income for the three months ended March 31, 2011 as compared to the same period in 2010 is primarily related to a lease termination at 1201 Eye Street in Washington, D.C. resulting in a reduction in revenue of approximately $640,000 as well as a one-time application of supplemental parking receipts during the first quarter of 2010 amounting to approximately $380,000 at 4250 North Fairfax Drive in Arlington, VA.
(6) The increase in New York Same Store Net Operating Income for the three months ended March 31, 2011 as compared to the same period in 2010 is primarily related to a rental abatement in 2010 associated with the lease extension/restructure with the State of New York at 60 Broad Street in New York, NY.
(7) The decrease in Los Angeles Same Store Net Operating Income for the three months ended March 31, 2011 as compared to the same period in 2010 is primarily due to a space contraction at lease renewal effective third quarter 2010 along with a roll down of total revenues per square foot received from that renewing tenant at 800 North Brand Boulevard in Glendale, CA.
(8) The decrease in Other Same Store Net Operating Income for the three months ended March 31, 2011 compared to the same period in 2010 is due to a number of factors, the largest two of which are reduced rental income and operating expense reimbursements due to the expiration of an approximate 87,000 square foot lease during the fourth quarter of 2010 at Eastpointe Corporate Center in Issaquah, WA, and a lease contraction of approximately 91,000 square feet effective third quarter 2010 at Chandler Forum in Chandler, AZ.
 
13

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

 
 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	
 	  	        3/31/2011        	 	  	        3/31/2010        	 	
 	 	 	
Net income attributable to Piedmont	  	  $	33,967  	  	  	  $	31,460  	  	
 	 	 	
Net income attributable to noncontrolling interest	  	 	123  	  	  	 	125  	  	
Interest expense	  	 	17,174  	  	  	 	19,091  	  	
Depreciation (1)	  	 	27,324  	  	  	 	26,428  	  	
Amortization (1)	  	 	12,106  	  	  	 	11,488  	  	
Gain on consolidation of VIE	  	 	(1,920) 	  	  	 	-      	  	
 	  	 	 	 	  	 	 	 	
Core EBITDA	  	 	88,774  	  	  	 	88,592  	  	
 	 	 	
General & administrative expenses (1)	  	 	6,899  	  	  	 	6,696  	  	
Management fee revenue	  	 	(830) 	  	  	 	(753) 	  	
Interest and other income	  	 	(3,460) 	  	  	 	(969) 	  	
Lease termination income	  	 	(3,404) 	  	  	 	(496) 	  	
Lease termination expense - straight line rent & acquisition intangibles write-offs	  	 	436  	  	  	 	67  	  	
 	  	 	 	 	  	 	 	 	
Core net operating income	  	 	88,415  	  	  	 	93,137  	  	
 	 	 	
Net operating income from:	  	 	 	 	  	 	 	 	
Acquisitions (2)	  	 	(819) 	  	  	 	-      	  	
Dispositions (3)	  	 	-      	  	  	 	(1,584) 	  	
Industrial properties	  	 	(259) 	  	  	 	(281) 	  	
Unconsolidated joint ventures	  	 	(616) 	  	  	 	(1,252) 	  	
 	  	 	 	 	  	 	 	 	
Same Store NOI	  	  $	    86,721  	  	  	  $	    90,020  	  	
 	  	 	 	 	  	 	 	 	
Change period over period	  	 	-3.7%      	  	  	 	N/A      	  	

 	 	 
Same Store Net Operating Income
Top Seven Markets
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	
  	 	 	  	Three Months Ended	 	  	 	 	 	
 	 	 	  	3/31/2011	 	  	3/31/2010	 	  	 	 	 	 	
 	 	 	  	        $        	 	  	        %        	 	  	        $        	 	  	        %        	 	  	 	 	 	 	 	
 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	
 	 	Chicago	  	  $	19,174	  	  	 	22.1  	  	  	  $	19,285	  	  	 	21.4  	  	  	 	 	 	 	 	 	 	
 	 	Washington, D.C. (4)	  	 	18,079	  	  	 	20.8  	  	  	 	18,964	  	  	 	21.1  	  	  	 	 	 	 	 	 	 	 	
 	 	New York	  	 	13,998	  	  	 	16.1  	  	  	 	13,822	  	  	 	15.4  	  	  	 	 	 	 	 	 	 	 	 	
 	 	Minneapolis	  	 	5,108	  	  	 	5.9  	  	  	 	5,078	  	  	 	5.6  	  	  	 	 	 	 	 	 	 	 	 	 	
 	 	Los Angeles (5)	  	 	3,910	  	  	 	4.5  	  	  	 	5,119	  	  	 	5.7  	  	  	 	 	 	 	 	 	 	 	 	 	 	
 	 	Dallas	  	 	4,044	  	  	 	4.7  	  	  	 	3,850	  	  	 	4.3  	  	  	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Boston	  	 	3,530	  	  	 	4.1  	  	  	 	3,528	  	  	 	3.9  	  	  	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Other (6)	  	 	18,878	  	  	 	21.8  	  	  	 	20,374	  	  	 	22.6  	  	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	      Total	  	  $	    86,721	  	  	 	100.0  	  	  	  $	    90,020	  	  	 	100.0  	  	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(1) Includes amounts attributable to wholly-owned properties, including discontinued operations, and our proportionate share of amounts attributable to unconsolidated joint ventures.
(2) Acquisitions consist of Suwanee Gateway One in Suwanee, GA, purchased on September 28, 2010, Meridian Crossings in Richfield, MN, purchased on October 1, 2010, 1200 Enclave Parkway in Houston, TX, purchased on March 30, 2011, and 500 West Monroe Street in Chicago, IL, acquired on March 31, 2011.
(3) Dispositions consists of 111 Sylvan Avenue in Englewood Cliffs, NJ, sold on December 8, 2010.
(4) The decrease in Washington, D.C. Same Store Net Operating Income for the three months ended March 31, 2011 as compared to the same period in 2010 is primarily related to a lease termination at 1201 Eye Street in Washington, D.C. resulting in a reduction in revenue of approximately $640,000 as well as a one-time application of supplemental parking receipts during the first quarter of 2010 amounting to approximately $380,000 at 4250 North Fairfax Drive in Arlington, VA.

(5) The decrease in Los Angeles Same Store Net Operating Income for the three months ended March 31, 2011 as compared to the same period in 2010 is primarily due to a space contraction at lease renewal effective third quarter 2010 along with a roll down of total revenues per square foot received from that renewing tenant at 800 North Brand Boulevard in Glendale, CA.
(6) The decrease in Other Same Store Net Operating Income for the three months ended March 31, 2011 compared to the same period in 2010 is due to a number of factors, the largest two of which are reduced rental income and operating expense reimbursements due to the expiration of an approximate 87,000 square foot lease during the fourth quarter of 2010 at Eastpointe Corporate Center in Issaquah, WA, and a lease contraction of approximately 91,000 square feet effective third quarter 2010 at Chandler Forum in Chandler, AZ.
 
14

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

 	 	 	 	 	 	 	 	 	
 	  	As of
            March 31, 2011        	 	  	As of
    December 31, 2010    	 	

    Common stock price (1)	  	 	$19.41	  	  	 	$20.14	  	
 	 	 	
    Total shares outstanding (2)	  	 	172,658	  	  	 	172,658	  	
 	 	 	
Class A common stock	  	 	172,658	  	  	 	132,956	  	
Class B-1 common stock	  	 	-    	  	  	 	-    	  	
Class B-2 common stock	  	 	-    	  	  	 	-    	  	
Class B-3 common stock	  	 	-    	  	  	 	39,702	  	
 	 	 	
    Equity market capitalization (3)	  	 	$3,351,301	  	  	 	$3,477,342	  	
 	 	 	
    Total gross debt - principal amount outstanding	  	 	$1,602,525	  	  	 	$1,402,525	  	
 	 	 	
    Total market capitalization (1)	  	 	$4,953,826	  	  	 	$4,879,867	  	
 	 	 	
    Total gross debt / Total market capitalization	  	 	32.3%	  	  	 	28.7%	  	
 	 	 	
    Total gross real estate assets	  	 	$4,804,988	  	  	 	$4,567,326	  	
 	 	 	
    Total gross debt / Total gross real estate assets (4)	  	 	33.4%	  	  	 	30.7%	  	
 	 	 	
    Total gross debt / Total gross assets (5)	  	 	29.3%	  	  	 	26.6%	  	

(1) Reflects Class A common stock closing price as of the end of the reporting period.
(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. Class B-1 common stock converted automatically into Class A common stock on August 9, 2010, Class B-2 common stock converted automatically into Class A common stock on November 7, 2010 and Class B-3 common stock converted automatically into Class A common stock on January 30, 2011.
(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 footnotes (1) and (2) above.
(4) Total debt to total gross real estate assets ratio is defined as total debt divided by gross real estate assets. Gross real estate assets is defined as total real estate assets with the add back of accumulated depreciation and accumulated amortization related to real estate assets.
(5) Total debt to total gross assets ratio 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)	  	Principal Amount
Outstanding	 	 	  	Weighted Average
Stated Interest Rate	 	 	  	Weighted Average
Maturity	  	 

Floating Rate	  	$200,000 (2)	 	 	  	1.51% (3)	 	 	  	16.4 months	  	 	
Fixed Rate (4)	  	1,402,525	 	 	  	4.66%	 	 	  	38.3 months	  	 	
 	  	 	
Total	  	$1,602,525	 	 	  	4.27%	 	 	  	35.5 months	  	 	

Unsecured & Secured Debt	
Debt (1)	  	Principal Amount
Outstanding	 	 	  	Weighted Average
Stated Interest Rate	 	 	  	Weighted Average
Maturity	  	 

Unsecured	  	$265,000	 	 	  	2.41% (4)	 	 	  	3.7 months	  	 	
Secured	  	1,337,525	 	 	  	4.64%	 	 	  	41.8 months	  	 	
 	  	 	
Total	  	$1,602,525	 	 	  	4.27%	 	 	  	35.5 months	  	 	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Debt Maturities	
Maturity Year	  	Secured Debt -
Principal Amount
Outstanding  (1)	 	 	  	Unsecured Debt -
Principal Amount
Outstanding  (1)	 	 	  	Weighted Average
Stated Interest
Rate	  	Percentage of
Total	  	 	

2011	  	 
$0	 	 	  	 
$250,000	 	 	  	 
2.36%	  	 
15.6%	  	 	
2012	  	230,000 (5)	 	 	  	15,000 (6)	 	 	  	2.19%	  	15.3%	  	 	
2013	  	0	 	 	  	0	 	 	  	N/A	  	N/A	  	 	
2014	  	695,000	 	 	  	0	 	 	  	4.92%	  	43.4%	  	 	
2015	  	105,000	 	 	  	0	 	 	  	5.29%	  	6.5%	  	 	
2016	  	167,525	 	 	  	0	 	 	  	5.55%	  	10.5%	  	 	
2017	  	140,000	 	 	  	0	 	 	  	5.76%	  	8.7%	  	 	
 	  	 	
Total	  	$1,337,525	 	 	  	$265,000	 	 	  	4.27%	  	100.0%	  	 	
 	  	 	
(1) All of Piedmont’s outstanding debt as of March 31, 2011 is interest-only debt.
(2) Amount represents the outstanding balance as of March 31, 2011 on the $500 million unsecured line of credit, totaling $15 million, along with the balances on two loans secured by 500 West Monroe Street or equity ownership interests therein, totaling $185 million.
(3) The weighted average interest rate is a weighted average rate for amounts drawn under our $500 million unsecured line of credit and the loans totaling $185 million related to 500 West Monroe Street. Please see the following page for additional details on the interest rate for each loan.
(4) The weighted average interest rate is a weighted average rate for amounts drawn under our $500 million unsecured line of credit and the $250 million unsecured term loan. The $250 million unsecured term loan has a stated variable rate; however, Piedmont entered into interest rate swap agreements which effectively fixed the interest rate on this loan at 2.36% through June 28, 2011.
(5) Amount includes the balances as of March 31, 2011 of the loans related to 500 West Monroe Street, totaling $185 million, which mature in August 2011. Management intends to exercise the one-year extension option available under each loan to extend the maturity dates to August 2012. The payment of a 25 basis point fee will be required to extend each of the loans related to 500 West Monroe Street. Additionally, in order to extend the loans related to 500 West Monroe Street, Piedmont must purchase interest rate caps for the extension period, pay certain reserve amounts to the lender to be held on Piedmont’s behalf to fund potential future expenses, and not then be in default under either loan agreement.
(6) Amount represents the outstanding balance as of March 31, 2011 on the $500 million unsecured line of credit, which matures in August 2011. Management intends to exercise the one-year extension option available under the loan to extend the maturity date to August 2012. The payment of a 15 basis point fee will be required to extend the term of the loan.
 
16

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

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Facility	  	Property	  	Rate(1)	 	 	Maturity	 	 	Principal Amount
Outstanding as of
March 31, 2011	 	

Secured	  	 	  	 	 	 	 	 	 	 	 	 	 	 	
500 West Monroe Mortgage Loan	  	500 West Monroe Street	  	 	LIBOR + 1.01% (2)	  	 	 	8/9/2011	 (3) 	 	 	$140,000	  	
500 West Monroe Mezzanine Loan (4)	  	500 West Monroe Street	  	 	LIBOR + 1.45% (2)	  	 	 	8/9/2011	 (3) 	 	 	45,000	  	
$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 (5)	  	 	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 (6)	  	 	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 (7)	  	 	  	 	4.64%	  	 	 	 	 	 	 	$1,337,525	  	
 	 	 	 	 	
Unsecured	  	 	  	 	 	 	 	 	 	 	 	 	 	 	
$250 Million Unsecured Term Loan (8)	  	N/A	  	 	LIBOR + 1.50%(8)	  	 	 	6/28/2011	  	 	 	$250,000	  	
$500 Million Unsecured Facility (9)	  	N/A	  	 	3.25%(10)	  	 	 	8/30/2011	 (11)	 	 	15,000	  	

Subtotal / Weighted Average (7)	  	 	  	 	2.41%	  	 	 	 	 	 	 	$265,000	  	

Total Gross Debt - Principal Amount Outstanding / Weighted Average Stated Rate (7)	  	 	4.27%	  	 	 	 	 	 	 	$1,602,525	  	

Purchase Accounting Valuation Adjustments (12)	  	 	 	 	 	 	 	 	 	 	($1,413)	  	

Total Debt - GAAP Amount Outstanding / Weighted Average Effective Rate (13)	  	 	4.54%	  	 	 	 	 	 	 	$1,601,112	  	
 	 	
(1) All of Piedmont’s outstanding debt as of March 31, 2011 is interest-only debt.
(2) The LIBOR rate effective under this loan on March 31, 2011 was 0.255%. There are interest rate cap agreements in place through August 2011 that limit Piedmont’s LIBOR exposure to 1.00%. Any increases in LIBOR above 1.00% are the responsibility of our counterparty.
(3) Piedmont may extend the term for one additional year provided that Piedmont is not then in default, a 25 basis point extension fee is paid, interest rate caps are purchased for the extension period, and certain reserve amounts are provided to the lender to be held on Piedmont’s behalf to fund potential future expenses of the property.
(4) The principal balance of this loan is $61.5 million. Piedmont owns a $16.5 million junior participation in this loan, which is eliminated upon consolidation.
(5) The nine property collateralized pool includes 1200 Crown Colony Drive, Braker Pointe III, 2 Gatehall Drive, One and Two Independence Square, 2120 West End Avenue, 200 and 400 Bridgewater Crossing, and Fairway Center II.
(6) The four property collateralized pool includes 1430 Enclave Parkway, Windy Point I and II, and 1055 East Colorado Boulevard.
(7) Weighted average is based on the total balance outstanding and interest rate at March 31, 2011.
(8) The $250 million unsecured term loan has a stated variable rate; however, Piedmont entered into interest rate swap agreements which effectively fixed the interest rate on this loan at 2.36% through June 28, 2011.
(9) All of Piedmont’s outstanding debt as of March 31, 2011 is term debt with the exception of the $500 million unsecured line of credit.
(10) The interest rate on the $500 million unsecured line of credit is equal to the weighted-average interest rate on all outstanding draws as of March 31, 2011. 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 March 31, 2011) over the selected rate based on Piedmont’s current credit rating.
(11) 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.
(12) Adjustments relate to the fair market valuation of the debt associated with 500 West Monroe Street upon consolidation. The discounts will be amortized to interest expense over the remaining contractual term of the debt.
(13) Weighted average effective rate reflects the higher effective rate under the 500 West Monroe Street loans as a result of fair market valuation of the debt upon consolidation of 500 West Monroe Street.
 
17

Piedmont Office Realty Trust, Inc.
Debt Analysis
As of March 31, 2011
Unaudited

 
 	 	 	 	 	 	 	 	 	
Debt Covenant Compliance (1)	  	Required	 	  	Actual	 	
 
Maximum Leverage Ratio	  	 	0.60	  	  	 	0.31        	  	
 
Minimum Fixed Charge Coverage Ratio (2)	  	 	1.50	  	  	 	4.99        	  	
 
Maximum Secured Indebtedness Ratio	  	 	0.40	  	  	 	0.26        	  	
 
Minimum Unencumbered Leverage Ratio	  	 	1.60	  	  	 	8.45        	  	
 
Minimum Unencumbered Interest Coverage Ratio (3)	  	 	1.75	  	  	 	17.30        	  	
 
Maximum Certain Permitted Investments Ratio (4)	  	 	0.35	  	  	 	0.01        	  	

 
(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
March 31, 2011	 	  	Year ended
        December 31, 2010        	 	
 
Net debt / Core EBITDA	  	 	4.3 x    	  	  	 	3.8 x	  	
 
Fixed charge coverage ratio (5)	  	 	5.2 x    	  	  	 	4.9 x	  	
 
Interest coverage ratio (6)	  	 	5.2 x    	  	  	 	4.9 x	  	

 
(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 periods ended March 31, 2011 and December 31, 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 periods ended March 31, 2011 and December 31, 2010.

18

Piedmont Office Realty Trust, Inc.
Tenant Diversification
As of March 31, 2011
(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 / Aaa	 	10	 	(4)	 	$75,943	 	12.5	 	1,773	 	9.4	
BP (5)	  	A / A2	 	1	 	2013	 	32,580	 	5.4	 	776	 	4.1	
US Bancorp	  	A+ / Aa3	 	3	 	2014 / 2023 (6)	 	29,730	 	4.9	 	1,052	 	5.6	
Leo Burnett	  	BBB+ / Baa2	 	2	 	2019	 	26,419	 	4.4	 	682	 	3.6	
State of New York	  	AA / Aa2	 	1	 	2019	 	19,095	 	3.1	 	481	 	2.6	
Winston & Strawn	  	No rating available (7)	 	1	 	2024	 	18,332	 	3.0	 	417	 	2.2	
Sanofi-aventis	  	AA- / A2	 	2	 	2012	 	17,736	 	2.9	 	454	 	2.4	
Independence Blue Cross	  	No rating available	 	1	 	2023	 	14,571	 	2.4	 	761	 	4.1	
Nestle	  	AA / Aa1	 	1	 	2015	 	13,724	 	2.3	 	392	 	2.1	
GE	  	AA+ / Aa2	 	2	 	2012	 	12,039	 	2.0	 	333	 	1.8	
Zurich American	  	AA-	 	1	 	2011	 	10,611	 	1.7	 	300	 	1.6	
Kirkland & Ellis	  	No rating available (7)	 	1	 	2011	 	10,180	 	1.7	 	332	 	1.8	
Shaw	  	BBB- / Ba1	 	1	 	2018	 	9,782	 	1.6	 	313	 	1.7	
State Street Bank	  	AA- / Aa2	 	1	 	2021	 	9,552	 	1.6	 	235	 	1.3	
City of New York	  	AA / Aa2	 	1	 	2020	 	9,319	 	1.5	 	313	 	1.7	
Lockheed Martin	  	A- / Baa1	 	3	 	2014	 	9,142	 	1.5	 	284	 	1.5	
DDB Needham	  	BBB+ / Baa1	 	1	 	2018	 	8,787	 	1.4	 	244	 	1.3	
Gallagher	  	No rating available	 	1	 	2018	 	7,969	 	1.3	 	307	 	1.6	
Marsh USA	  	BBB- / Baa2	 	1	 	2011	 	7,326	 	1.2	 	173	 	0.9	
Gemini	  	A+ / Aa3	 	1	 	2013	 	7,320	 	1.2	 	205	 	1.1	
Other	  	 	 	 	 	Various	 	256,415	 	42.4	 	8,946	 	47.6	
Total	  	 	 	 	 	 	 	$606,572	 	100.0	 	18,773	 	100.0	

(1) Credit rating may reflect credit rating of parent or guarantor. When available, both the Standard & Poor’s credit rating and the Moody’s credit rating are provided.
(2) Represents the expiration year of the majority of the square footage leased by the tenant.
(3) Please refer to page 30 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 2027.
(5) Majority of space is subleased to Aon Corporation.
(6) US Bank’s lease at One & Two Meridian Crossings, representing approximately 337,000 square feet and $8.1 million of Annualized Lease Revenue, expires in 2023. Of US Bancorp’s lease at US Bancorp Center for 715,000 square feet, representing $21.6 million of Annualized Lease Revenue, approximately 635,000 square feet, representing $18.8 million of Annualized Lease Revenue, expires in 2014, with the balance of approximately 80,000 square feet, representing $2.8 million of Annualized Lease Revenue, expiring during the second quarter of 2011.
(7) While no ratings are available for Winston & Strawn and Kirkland & Ellis, these tenants are ranked #34 and #6, respectively, in the 2011 AmLaw 100 ranking (based on 2010 financial data), a publication of The American Lawyer Magazine, which annually ranks the top-grossing and most profitable law firms.
 
19

Piedmont Office Realty Trust, Inc.
Tenant Credit Rating & Lease Distribution Information
As of March 31, 2011

 

    Tenant Credit Rating (1)	  	Annualized Lease
Revenue ($’s in
thousands)	 	  	Percentage of
    Annualized Lease    
Revenue (%)	  	  	 	
 
    AAA / Aaa	  	 	$83,427	  	  	13.7	  	 	 	 	
    AA / Aa	  	 	152,003	  	  	25.1	  	 	 	 	
    A / A	  	 	101,906	  	  	16.8	  	 	 	 	
    BBB / Baa	  	 	99,560	  	  	16.4	  	 	 	 	
    BB / Ba	  	 	5,471	  	  	0.9	  	 	 	 	
    B / B	  	 	20,025	  	  	3.3	  	 	 	 	
    Below	  	 	0	  	  	0.0	  	 	 	 	
    Not rated (2)	  	 	144,180	  	  	23.8	  	 	 	 	
 	  	 	 	 	  	 	  	 	 	 	
    Total	  	 	$606,572	  	  	100.0	  	 	 	 	
 	  	 	 	 	  	 	  	 	 	 	
Lease Distribution
As of March 31, 2011

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	    Number of Leases    	 	    Percentage of    
Leases (%)	 	Annualized
    Lease Revenue    
(in thousands)	 	 	Percentage of
    Annualized Lease    
Revenue (%)	 	    Leased Square    
Footage (in
thousands)	 	Percentage of
    Leased Square    
Footage (%)	

2,500 or Less	 	170	 	34.4	 	 	$16,013	  	 	2.6	 	136	 	0.7	
2,501 - 10,000	 	127	 	25.7	 	 	22,969	  	 	3.8	 	659	 	3.5	
10,001 - 20,000	 	58	 	11.8	 	 	26,346	  	 	4.3	 	840	 	4.5	
20,001 - 40,000	 	52	 	10.5	 	 	46,064	  	 	7.7	 	1,478	 	7.9	
40,001 - 100,000	 	31	 	6.3	 	 	57,799	  	 	9.5	 	1,950	 	10.4	
Greater than 100,000	 	56	 	11.3	 	 	437,381	  	 	72.1	 	13,710	 	73.0	
 	
Total	 	494	 	100.0	 	 	$606,572	  	 	100.0	 	18,773	 	100.0	

 
(1) Credit rating may reflect credit rating of parent or guarantor. Where differences exist between the Standard & Poor’s credit rating for a tenant and the Moody’s credit rating for a tenant, the higher credit rating is selected for this analysis.
(2) The classification of a tenant as “not rated” does not indicate that the tenant is of poor credit quality, but rather that the tenant or the tenant’s debt, if any, is not rated. Included in this category are such tenants as Winston & Strawn, Independence Blue Cross, McKinsey & Company and KPMG.
 
20

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended March 31, 2011	 	 	 	  	 	  	Three Months Ended March 31, 2010	 	
 	 	 	 	 	 	 	 	 	
 	  	Leased Square
Footage	 	  	Rentable Square
Footage	 	  	Percent Leased (1)	 	 	 	  	 	  	Leased Square
Footage	 	  	Rentable Square
Footage	 	  	Percent Leased (1)	 	

As of December 31, 2010	  	 	18,214 	  	  	 	20,408 	  	  	 	89.2%	  	 	 	  	As of December 31, 2009	  	 	18,221 	  	  	 	20,229 	  	  	 	90.1%	  	
 	 	 	 	 	 	 	 	 	
New leases	  	 	796 	  	  	 	 	 	  	 	 	 	 	 	  	New leases	  	 	151 	  	  	 	 	 	  	 	 	 	
Expired leases	  	 	(904)	  	  	 	 	 	  	 	 	 	 	 	  	Expired leases	  	 	(255)	  	  	 	 	 	  	 	 	 	
Other	  	 	(1)	  	  	 	(4)	  	  	 	 	 	 	 	  	Other	  	 	(1)	  	  	 	1 	  	  	 	 	 	

Subtotal	  	 	18,105 	  	  	 	20,404 	  	  	 	88.7%	  	 	 	  	Subtotal	  	 	18,116 	  	  	 	20,230 	  	  	 	89.6%	  	
 	 	 	 	 	 	 	 	 	
Acquisitions during period	  	 	668 	  	  	 	1,112 	  	  	 	 	 	 	 	  	Acquisitions during period	  	 	-     	  	  	 	-     	  	  	 	 	 	
Dispositions during period	  	 	-     	  	  	 	-     	  	  	 	 	 	 	 	  	Dispositions during period	  	 	-     	  	  	 	-     	  	  	 	 	 	
 	 	 	 	 	 	 	 	 	
As of March 31, 2011 (2) (3)	  	 	18,773 	  	  	 	21,516 	  	  	 	87.3%	  	 	 	  	As of March 31, 2010 (2)	  	 	18,116 	  	  	 	20,230 	  	  	 	89.6%	  	

Less Acquisitions	  	 	 	 	  	 	 	 	  	 	 	 	 	 	  	Less Dispositions	  	 	 	 	  	 	 	 	  	 	 	 	
 	 	 	 	 	 	 	 	 	
Acquisitions after March 31, 2010	  	 	(1,036)	  	  	 	(1,638)	  	  	 	 	 	 	 	  	Dispositions after March 31, 2010	  	 	(410)	  	  	 	(410)	  	  	 	 	 	
 	 	 	 	 	 	 	 	 	
Same Store Total	  	 	17,737 	  	  	 	19,878 	  	  	 	89.2%	  	 	 	  	Same Store Total	  	 	17,706 	  	  	 	19,820 	  	  	 	89.3%	  	
 	  	 	 	 	 	 	  	 	  	 	 	 	
Rental Rate Roll Up / Roll Down (4) (5)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended March 31, 2011	 	
 	 	Square Feet	 	 	% of Total Signed
During Period	 	 	% of Rentable
Square Footage	 	 	% Change Cash
Rents	 	 	% Change Accrual
Rents  (6)	 	

New, renewal, and expansion leases executed for spaces vacant less than one year	 	 	724	  	 	 	86%	  	 	 	3.4%	  	 	 	8.1%	  	 	 	12.1%	  	
 	 	 	 	 	 	
Leases executed for spaces excluded from analysis (7)	 	 	119	  	 	 	14%	  	 	 	 	 	 	 	 	 	 	 	 	 	

(1) Calculated as leased square footage as of period end with the addition of square footage associated with uncommenced leases for spaces vacant as of period end, divided by total rentable square footage as of period end, expressed as a percentage.
(2) The square footage associated with leases with end of period expiration dates is included in the end of the period leased square footage. End of period leased square footage includes short-term space leased on behalf of NASA in accordance with requirements stipulated under its lease to allow it to restructure its space at Two Independence Square in Washington, DC. As of March 31, 2011, total short-term space amounts to approximately 58,000 square feet and it will be occupied until an estimated date of June 30, 2013.
(3) Excluding executed but not commenced leases for currently vacant spaces, comprising approximately 466,000 square feet, and leases for which no rental income is being recognized due to rental abatement concessions, comprising approximately 203,000 square feet, Piedmont’s economic occupancy as of March 31, 2011 was 84.1%.
(4) The population analyzed consists of office leases executed during the period (retail leases as well as leases associated with storage spaces, management offices, industrial properties and unconsolidated joint venture assets were excluded from this analysis). For spaces that had been vacant for less than one year, the rents last in effect for the previous lease were compared to the initial rents of the new lease. Spaces that had been vacant for greater than one year were excluded from this analysis.
(5) For leases under which a tenant may use, at its discretion, a portion of its tenant improvement allowance for expenses other than those related to improvements to its space, an assumption is made that the tenant elects to use any such portion of its tenant improvement allowance for improvements to its space prior to the commencement of its lease. This assumption is made based upon the historical tenant improvement allowance usage patterns of the Company’s tenants.
(6) For newly signed leases which have variations in straight line rent calculations, whether for known future expansions, contractions, lease expense recovery structure changes, or other similar reasons, the weighted average of such straight line rent calculations is used for the purposes of this analysis.
(7) Represents leases signed at our consolidated office assets that do not qualify for inclusion in the analysis primarily because the space for which the new lease was signed had been vacant for greater than one year. Leases signed with Piedmont entities are excluded from the analysis.
 
21

Piedmont Office Realty Trust, Inc.
Lease Expiration Schedule
As of March 31, 2011
(in thousands)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	OFFICE PORTFOLIO	  	 	 	GOVERNMENTAL ENTITIES	
 	 	Annualized Lease
Revenue  (1)	 	Percentage of
Annualized Lease
Revenue (%)	 	Rentable Square
Footage	 	Percentage of
Rentable Square
Footage (%)	  	 	 	Annualized Lease
Revenue  (1)	 	Percentage of
Annualized Lease
Revenue (%)	 	Percentage of
Current Year
Total Annualized
Lease Revenue
Expiring (%)	

Vacant	 	$0	 	0.0	 	2,743	 	12.7	  	 	 	$0	 	0.0	 	N/A	
2011 (2)	 	70,595	 	11.6	 	1,892	 	8.8	  	 	 	18,498	 	3.1	 	26.2	
2012 (3)	 	59,947	 	9.9	 	1,821	 	8.5	  	 	 	7,459	 	1.2	 	12.4	
2013	 	59,332	 	9.8	 	1,640	 	7.6	  	 	 	1,598	 	0.3	 	2.7	
2014	 	55,054	 	9.1	 	1,697	 	7.9	  	 	 	3,517	 	0.6	 	6.4	
2015	 	44,155	 	7.3	 	1,586	 	7.4	  	 	 	0	 	0.0	 	0.0	
2016	 	33,285	 	5.5	 	1,191	 	5.5	  	 	 	1,389	 	0.2	 	4.2	
2017	 	22,232	 	3.7	 	648	 	3.0	  	 	 	1,251	 	0.2	 	5.6	
2018	 	47,650	 	7.9	 	1,605	 	7.5	  	 	 	8,647	 	1.4	 	18.1	
2019	 	54,644	 	9.0	 	1,486	 	6.9	  	 	 	19,095	 	3.1	 	34.9	
2020	 	31,442	 	5.2	 	1,140	 	5.3	  	 	 	11,944	 	2.0	 	38.0	
2021	 	15,081	 	2.5	 	536	 	2.5	  	 	 	1,025	 	0.2	 	6.8	
2022	 	18,279	 	3.0	 	699	 	3.2	  	 	 	0	 	0.0	 	0.0	
2023	 	25,697	 	4.2	 	1,183	 	5.5	  	 	 	0	 	0.0	 	0.0	
2024	 	25,765	 	4.2	 	576	 	2.7	  	 	 	0	 	0.0	 	0.0	
Thereafter	 	43,414	 	7.1	 	1,073	 	5.0	  	 	 	30,276	 	5.0	 	69.7	

Total / Weighted Average	 	$606,572	 	100.0	 	21,516	 	100.0	  	 	 	$104,699	 	17.3	 	 	

 
 
(1) Annualized Lease Revenue for purposes of this schedule includes the revenue effects of leases executed but not commenced as of March 31, 2011.
(2) Includes leases with an expiration date of March 31, 2011 aggregating 7,502 square feet and Annualized Lease Revenue of $284,617.
(3) Leases and other revenue-producing agreements on a month-to-month basis, aggregating 15,822 square feet and Annualized Lease Revenue of $428,115, are assigned a lease expiration date of a year and a day beyond the period end date.
 
22

Piedmont Office Realty Trust, Inc.
Annual Lease Expirations
As of March 31, 2011
(in thousands)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	12/31/2011 (1)	 	12/31/2012	 	12/31/2013	 	12/31/2014	 	12/31/2015	
 	 	 	 	 	 	 	 	 	 	 	
 	 	Expiring
Square
  Footage  	 	Expiring Lease  
Revenue (2)	 	Expiring
Square
  Footage  	 	Expiring Lease  
Revenue (2)	 	Expiring
Square
  Footage  	 	Expiring Lease  
Revenue (2)	 	Expiring
Square
  Footage  	 	Expiring Lease  
Revenue (2)	 	Expiring
Square
  Footage  	 	Expiring Lease  
Revenue (2)	

Atlanta	 	82	 	$2,019	 	34	 	$620	 	29	 	$728	 	28	 	$576	 	0	 	$0	
Austin	 	0	 	0	 	0	 	0	 	0	 	0	 	0	 	0	 	0	 	0	
Boston	 	0	 	0	 	7	 	336	 	0	 	29	 	27	 	1,884	 	133	 	2,610	
Central & South Florida	 	134	 	3,034	 	4	 	107	 	8	 	215	 	17	 	438	 	6	 	134	
Chicago	 	614	 	24,181	 	386	 	14,080	 	801	 	32,491	 	34	 	3,962	 	202	 	5,569	
Cleveland	 	0	 	0	 	112	 	1,890	 	14	 	335	 	0	 	0	 	0	 	0	
Dallas	 	42	 	957	 	87	 	2,220	 	10	 	245	 	41	 	997	 	284	 	6,131	
Denver	 	0	 	0	 	0	 	0	 	0	 	0	 	0	 	0	 	0	 	0	
Detroit	 	225	 	3,637	 	84	 	2,233	 	136	 	1,984	 	12	 	217	 	131	 	3,866	
Houston	 	15	 	355	 	11	 	346	 	0	 	0	 	0	 	0	 	0	 	0	
Los Angeles	 	74	 	2,812	 	46	 	1,719	 	70	 	2,528	 	5	 	211	 	424	 	14,690	
Minneapolis	 	176	 	5,780	 	32	 	1,062	 	45	 	1,438	 	808	 	22,915	 	98	 	3,358	
Nashville	 	0	 	0	 	0	 	0	 	0	 	0	 	0	 	0	 	0	 	0	
New York	 	3	 	296	 	546	 	19,282	 	232	 	8,421	 	98	 	4,155	 	66	 	2,416	
Philadelphia	 	0	 	0	 	0	 	0	 	0	 	0	 	0	 	0	 	0	 	0	
Phoenix	 	45	 	903	 	0	 	0	 	0	 	0	 	0	 	0	 	194	 	3,798	
Portland	 	105	 	1,501	 	147	 	2,023	 	0	 	0	 	74	 	1,079	 	0	 	0	
Seattle	 	38	 	1,625	 	0	 	0	 	0	 	0	 	0	 	0	 	22	 	534	
Washington, D.C.	 	339	 	19,011	 	325	 	14,958	 	295	 	10,321	 	553	 	18,703	 	26	 	1,065	

Total / Weighted Average  (3)	 	1,892	 	$66,111	 	1,821	 	$60,876	 	1,640	 	$58,735	 	1,697	 	$55,137	 	1,586	 	$44,171	

 
 
(1) Includes leases with an expiration date of March 31, 2011 aggregating 7,502 square feet.
(2) Expiring lease revenue is calculated as expiring square footage multiplied by the gross rent per square foot of the tenant currently leasing the space.
(3) 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 March 31, 2011
Unaudited ($ in thousands)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	For the Three Months Ended	 	  	 	
 	  	 	 	 	  	 	
 	  	3/31/2011	 	  	12/31/2010	 	  	9/30/2010	 	  	6/30/2010	 	  	3/31/2010	 	  	 	
 	  	 	 	 	  	 	
Non-incremental (1)	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	
Bldg / construction / dev	  	 	$1,734	  	  	 	$3,082	  	  	 	            $2,293	  	  	 	            $3,607 	  	  	 	$2,637 	  	  	 	
Tenant improvements	  	 	10,266	  	  	 	17,197	  	  	 	6,088	  	  	 	2,333 	  	  	 	4,039 	  	  	 	
Leasing costs	  	 	9,469	  	  	 	6,315	  	  	 	4,948	  	  	 	3,029 	  	  	 	2,737 	  	  	 	
 	  	 	 	 	  	 	
Total non-incremental	  	 	21,469	  	  	 	26,594	  	  	 	13,329	  	  	 	8,969 	  	  	 	9,413 	  	  	 	
 
Incremental (1)	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	
Bldg / construction / dev	  	 	923	  	  	 	1,174	  	  	 	417	  	  	 	439 	  	  	 	250 	  	  	 	
Tenant improvements	  	 	1,053	  	  	 	6	  	  	 	0	  	  	 	0 	  	  	 	0 	  	  	 	
Leasing costs	  	 	75	  	  	 	2,531	  	  	 	0	  	  	 	0 	  	  	 	0 	  	  	 	
 	  	 	 	 	  	 	
Total incremental
 	  	 	2,051	  	  	 	3,711	  	  	 	417	  	  	 	439 	  	  	 	250 	  	  	 	
 	  	 	 	 	  	 	
Total capital expenditures	  	 	            $23,520	  	  	 	            $30,305	  	  	 	$13,746	  	  	 	$9,408 	  	  	 	            $9,663 	  	  	 	

 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	

Tenant improvement commitments (2)	  	  	 	 	 	  	 	 	 	  	 	
 
Tenant improvement commitments outstanding as of December 31, 2010	  	  	 	 	 	  	 	$111,390 	  	  	 	
New tenant improvement commitments related to leases executed during period	  	  	 	 	 	  	 	24,717 	  	  	 	
  Tenant improvement expenditures	  	  	 	(11,319)	  	  	 	 	 	  	 	
  Less: Tenant improvement expenditures fulfilled through accrued liabilities already presented on Piedmont’s balance sheet, expired commitments or other adjustments	   	  	 	6,629 	  	  	 	 	 	  	 	
Tenant improvement commitments fulfilled, expired or other adjustments	  	  	 	 	 	  	 	(4,690)	  	  	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	
Total as of March 31, 2011	  	  	 	 	 	  	 	        $131,417 	  	  	 	

 
 
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 30 and 31.
(2) Commitments are unexpired contractual tenant improvement obligations for leases executed in current and prior periods that have not yet been incurred and have not otherwise been presented on Piedmont’s financial statements. The four largest commitments total approximately $73.9 million, or 56% of total outstanding commitments.
 
24

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	  	 	  	For the Year Ended	 	
 	 	 	 	For the Three Months
Ended March 31, 2011	 	  	2010	 	  	2009	 	  	2008	 	
 	 	 	 	 	
Renewal Leases	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
 	 	Number of leases	 	 	8	  	  	 	37	  	  	 	34	  	  	 	34	  	
 	 	Square feet	 	 	615,793	  	  	 	1,241,481	  	  	 	1,568,895	  	  	 	967,959	  	
 	 	 
Tenant improvements per square foot(1)	 	 	$64.47	  	  	 	$14.40	  	  	 	$12.01	  	  	 	$8.28	  	
 	 	Leasing commissions per square foot	 	 	$16.09	  	  	 	$8.40	  	  	 	$5.51	  	  	 	$7.17	  	
 	 	Total per square foot	 	 	$80.56	  	  	 	$22.80	  	  	 	$17.52	  	  	 	$15.45	  	
 	 	 	 	 	 	
 	 	Tenant improvements per square foot per year of lease term	 	 	$4.39	  	  	 	$1.74	  	  	 	$1.44	  	  	 	$1.39	  	
 	 	Leasing commissions per square foot per year of lease term	 	 	$1.09	  	  	 	$1.02	  	  	 	$0.66	  	  	 	$1.20	  	
 	 	Total per square foot per year of lease term	 	 	$5.48	  	  	 	$2.76	  	  	 	$2.10	  	  	 	$2.59	  	
 	 	 	 	 	
New Leases	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
 	 	Number of leases	 	 	16	  	  	 	56	  	  	 	28	  	  	 	37	  	
 	 	Square feet	 	 	226,931	  	  	 	866,212	  	  	 	700,295	  	  	 	747,919	  	
 	 	Tenant improvements per square foot(1)	 	 	$48.16	  	  	 	$32.65	  	  	 	$45.04	  	  	 	$30.59	  	
 	 	Leasing commissions per square foot	 	 	$15.93	  	  	 	$11.28	  	  	 	$17.12	  	  	 	$15.95	  	
 	 	Total per square foot	 	 	$64.09	  	  	 	$43.93	  	  	 	$62.16	  	  	 	$46.54	  	
 	 	 	 	 	 	
 	 	Tenant improvements per square foot per year of lease term	 	 	$5.55	  	  	 	$4.16	  	  	 	$4.05	  	  	 	$3.24	  	
 	 	Leasing commissions per square foot per year of lease term	 	 	$1.84	  	  	 	$1.44	  	  	 	$1.54	  	  	 	$1.69	  	
 	 	Total per square foot per year of lease term	 	 	$7.39	  	  	 	$5.60	  	  	 	$5.59	  	  	 	$4.93	  	
 	 	 	 	 	
Total	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
 	 	Number of leases	 	 	24	  	  	 	93	  	  	 	62	  	  	 	71	  	
 	 	Square feet	 	 	842,724	  	  	 	2,107,693	  	  	 	2,269,190	  	  	 	1,715,878	  	
 	 	Tenant improvements per square foot(1)	 	 	$60.07	  	  	 	$21.90	  	  	 	$22.21	  	  	 	$18.01	  	
 	 	Leasing commissions per square foot	 	 	$16.04	  	  	 	$9.59	  	  	 	$9.09	  	  	 	$11.00	  	
 	 	Total per square foot	 	 	$76.11	  	  	 	$31.49	  	  	 	$31.30	  	  	 	$29.01	  	
 	 	 	 	 	 	
 	 	Tenant improvements per square foot per year of lease term	 	 	$4.59	  	  	 	$2.70	  	  	 	$2.42	  	  	 	$2.41	  	
 	 	Leasing commissions per square foot per year of lease term	 	 	$1.23	  	  	 	$1.18	  	  	 	$0.99	  	  	 	$1.47	  	
 	 	Total per square foot per year of lease term	 	 	$5.82	  	  	 	$3.88	  	  	 	$3.41	  	  	 	$3.88	  	
NOTE: This information is presented for our consolidated office assets only. Short-term leases (leases for a term of less than one year) are excluded from this information.
(1) For leases under which a tenant may use, at its discretion, a portion of its tenant improvement allowance for expenses other than those related to improvements to its space, an assumption is made that the tenant elects to use any such portion of its tenant improvement allowance for improvements to its space prior to the commencement of its lease. This assumption is made based upon the historical tenant improvement allowance usage patterns of the Company’s tenants.
 
25

Piedmont Office Realty Trust, Inc.
Geographic Diversification
As of March 31, 2011

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
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	 	7	 	$180,078	 	29.7	 	5,850	 	27.2	 	4,918	 	84.1	
Washington, D.C.	 	14	 	116,792	 	19.3	 	3,045	 	14.2	 	2,744	 	90.1	
New York	 	8	 	92,354	 	15.2	 	2,920	 	13.6	 	2,746	 	94.0	
Minneapolis	 	4	 	46,054	 	7.6	 	1,612	 	7.5	 	1,576	 	97.8	
Los Angeles	 	5	 	30,812	 	5.1	 	1,144	 	5.3	 	964	 	84.3	
Boston	 	4	 	24,239	 	4.0	 	583	 	2.7	 	562	 	96.4	
Dallas	 	7	 	24,049	 	4.0	 	1,275	 	5.9	 	1,079	 	84.6	
Detroit	 	4	 	18,197	 	3.0	 	929	 	4.2	 	809	 	87.1	
Philadelphia	 	1	 	14,571	 	2.4	 	761	 	3.5	 	761	 	100.0	
Atlanta	 	4	 	10,930	 	1.8	 	750	 	3.5	 	446	 	59.5	
Houston	 	2	 	10,521	 	1.7	 	463	 	2.2	 	341	 	73.7	
Nashville	 	1	 	6,975	 	1.1	 	312	 	1.5	 	312	 	100.0	
Phoenix	 	4	 	6,785	 	1.1	 	554	 	2.6	 	344	 	62.1	
Central & South Florida	 	3	 	5,867	 	1.0	 	299	 	1.4	 	253	 	84.6	
Austin	 	1	 	5,482	 	0.9	 	195	 	0.9	 	195	 	100.0	
Portland	 	4	 	4,603	 	0.8	 	325	 	1.5	 	325	 	100.0	
Cleveland	 	2	 	3,235	 	0.5	 	187	 	0.9	 	175	 	93.6	
Denver	 	1	 	2,712	 	0.4	 	156	 	0.7	 	156	 	100.0	
Seattle	 	1	 	2,316	 	0.4	 	156	 	0.7	 	67	 	42.9	

Total / Weighted Average	 	77	 	$606,572	 	100.0	 	21,516	 	100.0	 	18,773	 	87.3	

 
26

Piedmont Office Realty Trust, Inc.
Industry Diversification
As of March 31, 2011

 
 	 	 	 	 	 	 	 	 	 	 	 	 	
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	 	6	 	1.4	 	$104,699	 	17.3	 	2,574	 	13.7	
Business Services	 	63	 	15.1	 	68,641	 	11.3	 	2,210	 	11.8	
Depository Institutions	 	14	 	3.4	 	57,225	 	9.4	 	1,790	 	9.5	
Legal Services	 	10	 	2.4	 	36,423	 	6.0	 	1,019	 	5.4	
Insurance Carriers	 	20	 	4.8	 	36,322	 	6.0	 	1,495	 	8.0	
Petroleum Refining & Related Industries	 	1	 	0.2	 	32,580	 	5.4	 	776	 	4.1	
Nondepository Credit Institutions	 	12	 	2.9	 	32,336	 	5.3	 	1,076	 	5.7	
Chemicals & Allied Products	 	7	 	1.7	 	23,550	 	3.9	 	700	 	3.7	
Insurance Agents, Brokers & Services	 	9	 	2.2	 	18,914	 	3.1	 	598	 	3.2	
Engineering, Accounting, Research, Management
& Related Services	 	26	 	6.2	 	18,774	 	3.1	 	572	 	3.0	
Communications	 	36	 	8.6	 	17,544	 	2.9	 	595	 	3.2	
Security & Commodity Brokers, Dealers,
Exchanges & Services	 	21	 	5.0	 	15,250	 	2.5	 	548	 	2.9	
Food & Kindred Products	 	4	 	1.0	 	14,507	 	2.4	 	423	 	2.3	
Educational Services	 	7	 	1.7	 	12,011	 	2.0	 	276	 	1.5	
Transportation Equipment	 	4	 	1.0	 	11,275	 	1.9	 	346	 	1.8	
Other	 	177	 	42.4	 	106,521	 	17.5	 	3,775	 	20.2	
Total	 	417	 	100.0	 	$606,572	 	100.0	 	18,773	 	100.0	

 
27

Piedmont Office Realty Trust, Inc.
Property Investment Activity

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Acquisitions	
 	
Property Name	  	    Location	  	Acquisition
Date	 	  	Percent
Ownership
(%)	 	  	Year Built	 	  	Purchase
Price ($’s in
thousands)	  	Rentable
Square
Footage (in
thousands)	  	Percent
Leased at
Acquisition
(%)	
 	
Suwanee Gateway One	  	Suwanee, GA	  	 	9/28/2010	  	  	 	100  	  	  	 	2008	  	  	$7,875	  	142	  	0	
Meridian Crossings	  	Richfield, MN	  	 	10/1/2010	  	  	 	100  	  	  	 	1997-1998	  	  	65,611	  	384	  	96	
1200 Enclave Parkway	  	Houston, TX	  	 	3/30/2011	  	  	 	100  	  	  	 	1999	  	  	18,500	  	150	  	18	
500 West Monroe Street  (1)	  	Chicago, IL	  	 	3/31/2011	  	  	 	100  	  	  	 	1991	  	  	227,500	  	962	  	67	

 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	  	$319,486	  	1,638	  	63	

Dispositions	
 	
Property Name	  	    Location	  	Disposition
Date	 	  	Percent
Ownership
(%)	 	  	Year Built	 	  	Sale Price
($’s in
thousands)	  	Rentable
Square
Footage (in
thousands)	  	Percent
Leased at
Disposition
(%)	
 	
111 Sylvan Avenue (2)	  	Englewood Cliffs, NJ	  	 	12/8/2010	  	  	 	100  	  	  	 	1953-1967	  	  	$55,000	  	410	  	100 	
14400 Hertz Quail Springs Parkway	  	Oklahoma City, OK	  	 	10/15/2010	  	  	 	4  	  	  	 	1997	  	  	5,300	  	57	  	100	

 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	  	$60,300	  	467	  	100	

Acquisitions Subsequent to Quarter End	
Property Name	  	    Location	  	Acquisition
Date	 	  	Percent
Ownership
(%)	 	  	Year Built	 	  	Purchase
Price ($’s in
thousands)	  	Rentable
Square
Footage (in
thousands)	  	Percent
Leased at
Acquisition
(%)	
The Dupree Building	  	Atlanta, GA	  	 	4/29/2011	  	  	 	100  	  	  	 	1997	  	  	$20,450	  	138	  	83	
(1) Investment in this property was converted from a structured finance investment to an owned real estate asset through a UCC foreclosure of the equity ownership interest on March 31, 2011. The purchase price presented equates to the book basis for the real estate assets comprising the property.
(2) Property was to become vacant within six months of disposition.
 
28

Piedmont Office Realty Trust, Inc.
Other Investments
As of March 31, 2011

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
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	  	  	 	 	 	  	 	$9,780	  	  	313.4	  	 	100.0	  	
 110 Hidden Lake Circle	  	Duncan, SC	  	 	100  	  	  	 	1987	  	  	 	 	 	  	 	13,162	  	  	473.4	  	 	36.8	  	
 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	$22,942	  	  	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 (%)	 	
 	 	
 360 Interlocken Boulevard	  	Broomfield, CO	  	 	4  	  	  	 	1996	  	  	 	$244	  	  	 	$6,601	  	  	51.7	  	 	100.0	  	
 47300 Kato Road	  	Fremont, CA	  	 	78  	  	  	 	1982	  	  	 	2,659	  	  	 	3,430	  	  	58.4	  	 	0.0	  	
 20/20 Building	  	Leawood, KS	  	 	57  	  	  	 	1992	  	  	 	2,558	  	  	 	4,508	  	  	68.3	  	 	90.8	  	
 4685 Investment Drive	  	Troy, MI	  	 	55  	  	  	 	2000	  	  	 	5,136	  	  	 	9,337	  	  	77.1	  	 	100.0	  	
 5301 Maryland Way	  	Brentwood, TN	  	 	55  	  	  	 	1989	  	  	 	11,001	  	  	 	19,997	  	  	201.2	  	 	100.0	  	
 8560 Upland Drive	  	Parker, CO	  	 	72  	  	  	 	2001	  	  	 	7,635	  	  	 	10,621	  	  	148.2	  	 	100.0	  	
 Two Park Center	  	Hoffman Estates, IL	  	 	72  	  	  	 	1999	  	  	 	11,488	  	  	 	15,980	  	  	193.7	  	 	38.6	  	
 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	
 	  	 	  	 	 	 	  	 	 	 	  	 	$40,721	  	  	 	$70,474	  	  	798.6	  	 	77.0	  	

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	  	 	 	 	
 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	  	 	 	 	
 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	46.1	  	 	 	 	

29

 	
Piedmont Office Realty Trust, Inc.
Supplemental Definitions
 
Included in this section are management’s statements regarding certain non-GAAP financial measures provided in this supplemental report and reasons why management believes that these measures provide useful information to investors about the Company’s financial condition and results of operations. Reconciliations of these non-GAAP measures are included within pages 33-36.
 
Adjusted Funds From Operations (“AFFO”): AFFO is calculated by deducting from Core FFO non-incremental capital expenditures and adding back non-cash items including non-real estate depreciation, straight lined rents and fair value lease revenue, non-cash components of interest expense and compensation expense, and by making similar adjustments for unconsolidated partnerships and joint ventures. Although AFFO may not be comparable to that of other REITs, we believe it provides a meaningful indicator of our ability to fund cash needs and to make cash distributions to equity owners. AFFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating performance to net income, as an alternative to net cash flows from operating activities or as a measure of our liquidity.
 
Annualized Lease Revenue (“ALR”): ALR is calculated by multiplying (i) rental payments (defined as base rent plus operating expense reimbursements, if payable by the tenant on a monthly basis under the terms of a lease that have been executed, but excluding a) rental abatements and b) rental payments related to executed but not commenced leases for space that was covered by an existing lease), by (ii) 12. In instances in which contractual rents or operating expense reimbursements are collected on an annual, semi-annual, or quarterly basis, such amounts are multiplied by a factor of 1, 2, or 4, respectively, to calculate the annualized figure. For leases that have been executed but not commenced relating to un-leased space, ALR is calculated by multiplying (i) the monthly base rental payment (excluding abatements) plus any operating expense reimbursements for the initial month of the lease term, by (ii) 12. Unless stated otherwise, this measure excludes our industrial properties and unconsolidated joint venture interests.
 
Core EBITDA: Core EBITDA is defined as net income before interest, taxes, depreciation and amortization and incrementally removing any impairment losses, gains or losses from sales of property, or other extraordinary items. We do not include impairment losses in this measure because we feel these types of losses create volatility in our earnings and make it difficult to determine the earnings generated by our ongoing business. We believe Core EBITDA is a reasonable measure of our liquidity. Core EBITDA is a non-GAAP financial measure and should not be viewed as an alternative measurement of cash flows from operating activities or other GAAP basis liquidity measures. Other REITs may calculate Core EBITDA differently and our calculation should not be compared to that of other REITs.
 
Core Funds From Operations (“Core FFO”): We calculate Core FFO by starting with FFO, as defined by NAREIT, and adjusting for certain non-recurring items such as impairment losses and other extraordinary items. Such items create significant earnings volatility. We believe Core FFO provides a meaningful measure of our operating performance and more predictability regarding future earnings potential. Core FFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating performance to net income; therefore, it should not be compared to other REITs’ equivalent to Core FFO.
 
Core Net Operating Income (“Core NOI”): Core NOI is defined as real estate operating income with the add-back of corporate general and administrative expense, depreciation and amortization, and casualty and impairment losses and the deduction of income and expense associated with lease terminations and income associated with property management performed by Piedmont for other organizations. We present this measure on an accrual basis and a cash basis, which eliminates the effects of straight lined rents and fair value lease revenue. The company uses this measure to assess its operating results and believes it is important in assessing operating performance. Core NOI is a non-GAAP measure which does not have any standard meaning prescribed by GAAP and therefore may not be comparable to similar measures presented by other companies.
 
EBITDA: EBITDA is defined as net income before interest, taxes, depreciation and amortization. We believe EBITDA is an appropriate measure of our ability to incur and service debt. EBITDA should not be considered as an alternative to cash flows from operating activities, as a measure of our liquidity or as an alternative to net income as an indicator of our operating activities. Other REITs may calculate EBITDA differently and our calculation should not be compared to that of other REITs.
 
Funds From Operations (“FFO”): FFO is calculated in accordance with the current National Association of Real Estate Investment Trusts (“NAREIT”) definition. NAREIT currently defines FFO as net income (computed in accordance with GAAP), excluding gains or losses from sales of property, adding back depreciation and amortization on real estate assets, and after the same adjustments for unconsolidated partnerships and joint ventures. Such factors can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates. FFO may provide valuable comparisons of operating performance between periods and with other REITs. FFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating performance to net income. We believe that FFO is a beneficial indicator of the performance of an equity REIT. However, other REITs may not define FFO in accordance with the NAREIT definition, or may interpret the current NAREIT definition differently than we do; therefore, our computation of FFO may not be comparable to that of such other REITs.
 
Incremental Capital Expenditures: Incremental Capital Expenditures are defined as capital expenditures of a non-recurring nature that incrementally enhance the underlying assets’ income generating capacity. Tenant improvements, leasing commissions, building capital and deferred lease incentives incurred to lease space that was dark at acquisition, improvements associated with the expansion of a building and renovations that change the underlying classification of a building are included in this measure.	
 
30

 	
 
Piedmont Office Realty Trust, Inc.
Supplemental Definitions

 
 
NOI from Unconsolidated Joint Ventures: NOI from Unconsolidated Joint Ventures is defined as Core NOI attributable to our interests in eight properties owned through unconsolidated partnerships. We present this measure on an accrual basis and a cash basis, which eliminates the effects of straight lined rents and fair value lease revenue. NOI from Unconsolidated Joint Ventures is a non-GAAP measure and therefore may not be comparable to similarly defined data provided by other REITs.
 
Non-Incremental Capital Expenditures: Non-Incremental Capital Expenditures are defined as capital expenditures of a recurring nature related to tenant improvements and leasing commissions that do not incrementally enhance the underlying assets’ income generating capacity. We exclude first generation tenant improvements and leasing commissions from this measure.
 
Same Store Net Operating Income (“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 and unconsolidated joint venture assets. 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 and unconsolidated joint venture assets. We believe Same Store Properties is an important measure of comparison of our stabilized portfolio performance.	
 
31

 	 	 	 	 	
Piedmont Office Realty Trust, Inc.
Research Coverage
 	
Paul E. Adornato, CFA	  	John W. Guinee, III	  	Brendon Maiorana	
BMO Capital Markets	  	Stifel, Nicolaus & Company	  	Wells Fargo	
3 Time Square	  	One South Street	  	7 St. Paul Street	
New York, NY 10036	  	16th Floor	  	MAC R1230-011	
Phone: (212) 885-4170	  	Baltimore, MD 21202	  	Baltimore, MD 21202	
 	  	Phone: (443) 224-1307	  	Phone: (443) 263-6516	
 	 	 	
Anthony Paolone, CFA	  	David B. Rodgers, CFA	  	John J. Stewart, CFA	
JP Morgan	  	RBC Capital Markets	  	Green Street Advisors	
277 Park Avenue	  	Arbor Court	  	660 Newport Center Drive, Suite 800	
New York, NY 10172	  	30575 Bainbridge Road, Suite 250	  	Newport Beach, CA 92660	
Phone: (212) 622-6682	  	Solon, OH 44139	  	Phone: (949) 640-8780	
 	  	Phone: (440) 715-2647	  	 	
 	 	 	
 	  	Stephen C. Swett	  	 	
 	  	Morgan Keegan & Co.	  	 	
 	  	535 Madison Avenue	  	 	
 	  	10th Floor	  	 	
 	  	New York, NY 10022	  	 	
 	  	Phone: (212) 508-7585	  	 	

 
32

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	
 	 	 3/31/2011 	 	 	 12/31/2010 	 	 	 9/30/2010 	 	 	 6/30/2010 	 	 	 3/31/2010 	 	
 	 	 	 	 	 	
Net income attributable to Piedmont	 	$	33,967  	  	 	$	28,700  	  	 	$	40,584  	  	 	$	19,636  	  	 	$	31,460  	  	
 	 	 	 	 	 	
Net income attributable to noncontrolling interest	 	 	123  	  	 	 	122  	  	 	 	158  	  	 	 	125  	  	 	 	125  	  	
Interest expense	 	 	17,174  	  	 	 	17,378  	  	 	 	17,359  	  	 	 	18,933  	  	 	 	19,091  	  	
Depreciation	 	 	27,324  	  	 	 	26,995  	  	 	 	26,339  	  	 	 	26,050  	  	 	 	26,428  	  	
Amortization	 	 	12,106  	  	 	 	11,623  	  	 	 	11,119  	  	 	 	11,104  	  	 	 	11,488  	  	
Impairment loss on real estate assets	 	 	-      	  	 	 	-      	  	 	 	53  	  	 	 	9,587  	  	 	 	-      	  	
Loss on sale of property	 	 	-      	  	 	 	792  	  	 	 	-      	  	 	 	-      	  	 	 	-      	  	
Gain on consolidation of VIE	 	 	(1,920) 	  	 	 	-      	  	 	 	-      	  	 	 	-      	  	 	 	-      	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core EBITDA	 	 	88,774  	  	 	 	85,610  	  	 	 	95,612  	  	 	 	85,435  	  	 	 	88,592  	  	
 	 	 	 	 	 	
General & administrative expenses	 	 	6,899  	  	 	 	7,934  	  	 	 	7,001  	  	 	 	7,993  	  	 	 	6,696  	  	
Management fee revenue	 	 	(830) 	  	 	 	(948) 	  	 	 	(806) 	  	 	 	(705) 	  	 	 	(753) 	  	
Interest and other income	 	 	(3,460) 	  	 	 	(491) 	  	 	 	(993) 	  	 	 	(1,036) 	  	 	 	(969) 	  	
Lease termination income	 	 	(3,404) 	  	 	 	(2,589) 	  	 	 	(4,230) 	  	 	 	(479) 	  	 	 	(496) 	  	
Lease termination expense - straight line rent & acquisition intangibles write-offs	 	 	436  	  	 	 	461  	  	 	 	131  	  	 	 	679  	  	 	 	67 	  	
Straight-line effects of lease revenue	 	 	1,972  	  	 	 	(3,791) 	  	 	 	(3,053) 	  	 	 	(1,463) 	  	 	 	1,006 	  	
Net effect of amortization of above/(below) market in-place lease intangibles	 	 	(1,534) 	  	 	 	(1,457) 	  	 	 	(1,510) 	  	 	 	(1,525) 	  	 	 	(1,426) 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core net operating income	 	 	88,853  	  	 	 	84,729  	  	 	 	92,152  	  	 	 	88,899  	  	 	 	92,717 	  	
 	 	 	 	 	 	
Net operating income from:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Acquisitions	 	 	354  	  	 	 	881  	  	 	 	2  	  	 	 	-  	  	 	 	- 	  	
Dispositions	 	 	-  	  	 	 	(1,119) 	  	 	 	(1,686) 	  	 	 	(1,683) 	  	 	 	(1,681) 	  	
Industrial properties	 	 	(239) 	  	 	 	(347) 	  	 	 	(91) 	  	 	 	(91) 	  	 	 	(273) 	  	
Unconsolidated joint ventures	 	 	(658) 	  	 	 	(1,165) 	  	 	 	(1,217) 	  	 	 	(1,186) 	  	 	 	(1,268) 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Same Store NOI	 	$	88,310  	  	 	$	82,979  	  	 	$	89,160  	  	 	$	85,939  	  	 	$	89,495 	  	

 
 
33

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	
 	 	  3/31/2011  	 	 	  12/31/2010  	 	 	  9/30/2010  	 	 	  6/30/2010  	 	 	  3/31/2010  	 	
 	 	 	 	 	 	
Equity in Income of Unconsolidated JVs	 	  $	209  	  	 	  $	630  	  	 	  $	619  	  	 	  $	647  	  	 	  $	737  	  	
 	 	 	 	 	 	
Interest expense	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	
 	 	 	 	 	 	
Depreciation	 	 	302  	  	 	 	310  	  	 	 	329  	  	 	 	337  	  	 	 	348  	  	
 	 	 	 	 	 	
Amortization	 	 	30  	  	 	 	101  	  	 	 	101  	  	 	 	101  	  	 	 	101  	  	
 	 	 	 	 	 	
Impairment loss	 	 	-  	  	 	 	-  	  	 	 	53  	  	 	 	-  	  	 	 	-  	  	
 	 	 	 	 	 	
Gain on sale of property	 	 
 	-  

 	(25) 

 	-  

 	-  

 	-  

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core EBITDA	 	 	541  	  	 	 	1,016  	  	 	 	1,102  	  	 	 	1,085  	  	 	 	1,186  	  	
 	 	 	 	 	 	
General & administrative expenses	 	 	75  	  	 	 	73  	  	 	 	40  	  	 	 	38  	  	 	 	66  	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core net operating income (accrual basis)	 	 	616  	  	 	 	1,089  	  	 	 	1,142  	  	 	 	1,123  	  	 	 	1,252  	  	
 	 	 	 	 	 	
Straight-line effects of lease revenue	 	 	42  	  	 	 	77  	  	 	 	76  	  	 	 	64  	  	 	 	17  	  	
 	 	 	 	 	 	
Net effect of amortization of above/(below) market in-place lease intangibles	 	 
 	-  

 	(1) 

 	(1) 

 	(1) 

 	(1) 

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core net operating income (cash basis)	 	  $	658  	  	 	  $	1,165  	  	 	  $	1,217  	  	 	  $	1,186  	  	 	  $	1,268  	  	

 
 
34

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	
 	 	  3/31/2011  	 	 	  12/31/2010  	 	 	  9/30/2010  	 	 	  6/30/2010  	 	 	  3/31/2010  	 	
Net income attributable to Piedmont	 	 	$33,967  	  	 	 	$28,700  	  	 	 	$40,584  	  	 	 	$19,636  	  	 	 	$31,460  	  	
 	 	 	 	 	 	
Depreciation	 	 	27,154  	  	 	 	26,821  	  	 	 	26,163  	  	 	 	25,872  	  	 	 	26,250  	  	
Amortization	 	 	12,106  	  	 	 	11,623  	  	 	 	11,119  	  	 	 	11,104  	  	 	 	11,488  	  	
Loss on sale of property	 	 	-      	  	 	 	792  	  	 	 	-      	  	 	 	-      	  	 	 	-      	  	
Gain on consolidation of VIE	 	 
 	(1,920) 

 	-      

 	-      

 	-      

 	-      

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Funds from operations	 	 	71,307  	  	 	 	67,936  	  	 	 	77,866  	  	 	 	56,612  	  	 	 	69,198  	  	
 	 	 	 	 	 	
Acquisition costs	 	 	(26) 	  	 	 	242  	  	 	 	310  	  	 	 	48  	  	 	 	-      	  	
Impairment loss	 	 
 	-      

 	-      

 	53  

 	9,587  

 	-      

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core funds from operations	 	 	71,281  	  	 	 	68,178  	  	 	 	78,229  	  	 	 	66,247  	  	 	 	69,198  	  	
 	 	 	 	 	 	
Depreciation of non real estate assets	 	 	170  	  	 	 	173  	  	 	 	176  	  	 	 	178  	  	 	 	178  	  	
Stock-based and other non-cash compensation expense	 	 	968  	  	 	 	1,223  	  	 	 	1,095  	  	 	 	711  	  	 	 	653  	  	
Deferred financing cost amortization	 	 	607  	  	 	 	608  	  	 	 	607  	  	 	 	696  	  	 	 	696  	  	
Straight-line effects of lease revenue	 	 	2,237  	  	 	 	(3,456) 	  	 	 	(2,921) 	  	 	 	(784) 	  	 	 	1,073  	  	
Amortization of lease related intangibles	 	 	(1,362) 	  	 	 	(1,331) 	  	 	 	(1,510) 	  	 	 	(1,525) 	  	 	 	(1,426) 	  	
Income from amortization of discount on purchase of mezzanine loans	 	 	(484) 	  	 	 	(473) 	  	 	 	(569) 	  	 	 	(694) 	  	 	 	(668) 	  	
Acquisition costs	 	 	26  	  	 	 	(242) 	  	 	 	(310) 	  	 	 	(48) 	  	 	 	-      	  	
 	 	 	 	 	 	
Non-incremental capital expenditures	 	 
 	(21,469) 

 	(26,594) 

 	(13,329) 

 	(8,969) 

 	(9,413) 

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted funds from operations	 	 	$51,974  	  	 	 	$38,086  	  	 	 	$61,468  	  	 	 	$55,812  	  	 	 	$60,291  	  	

 
 
35

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	
 	  	    3/31/2011	 	  	12/31/2010	 	  	9/30/2010	 	  	6/30/2010	 	  	3/31/2010    	 	

Revenues:	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Rental income	  	  $	-	  	  	$	1,063	  	  	$	1,595	  	  	$	1,594	  	  	$	1,594  	  	
Tenant reimbursements	  	 	-	  	  	 	-    	  	  	 	-    	  	  	 	-    	  	  	 	(2) 	  	
Property management fee revenue	  	 	-	  	  	 	-    	  	  	 	-    	  	  	 	-    	  	  	 	-      	  	
Other rental income	  	 	-	  	  	 	-    	  	  	 	-    	  	  	 	-    	  	  	 	-      	  	
 	  	 	 	 	
Total revenues	  	 	-	  	  	 	1,063	  	  	 	1,595	  	  	 	1,594	  	  	 	1,592  	  	
 	 	 	 	 	 	
Operating expenses:	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Property operating costs	  	 	-	  	  	 	8	  	  	 	5	  	  	 	8	  	  	 	8  	  	
Depreciation	  	 	-	  	  	 	-    	  	  	 	-    	  	  	 	130	  	  	 	389  	  	
Amortization	  	 	-	  	  	 	-    	  	  	 	-    	  	  	 	-    	  	  	 	-      	  	
General and administrative	  	 	-	  	  	 	38	  	  	 	156	  	  	 	2	  	  	 	10  	  	
 	  	 	 	 	
Total operating expenses	  	 	-	  	  	 	46	  	  	 	161	  	  	 	140	  	  	 	407  	  	

Operating income, excluding impairment loss and loss on sale	  	 	-	  	  	 	1,017	  	  	 	1,434	  	  	 	1,454	  	  	 	1,185  	  	
 	 	 	 	 	 	
Impairment loss	  	 	-	  	  	 	-    	  	  	 	-    	  	  	 	(9,587)	  	  	 	-      	  	
Loss on sale	  	 	-	  	  	 	(817)	  	  	 	-    	  	  	 	-    	  	  	 	-      	  	

Income from discontinued operations	  	  $	-	  	  	$	200	  	  	$	1,434	  	  	$	(8,133)	  	  	$	1,185  	  	

 
 
36

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

 	
Certain statements contained in this supplemental package constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We intend for all such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, as applicable. Such information is subject to certain risks and uncertainties, as well as known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of our performance in future periods. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “continue” or similar words or phrases that are predictions of future events or trends and which do not relate solely to historical matters.	
 
The following are some of the factors that could cause our actual results and expectations to differ materially from those described in our forward-looking statements: our ability to successfully identify and consummate suitable acquisitions; current adverse market and economic conditions; lease terminations or lease defaults, particularly by one of our large lead tenants; the impact of competition on our efforts to renew existing leases or re-let space; changes in the economies and other conditions of the office market in general and of the specific markets in which we operate; 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 our assets, including, but not limited to, receivables, real estate assets and other intangible assets; the success of our 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; our ability to continue to qualify as a REIT under the Internal Revenue Code; the impact of outstanding or potential litigation; and other factors detailed in our most recent Annual Report on Form 10-K and 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.	
 
37