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)	  	            February 10, 2011	
Piedmont Office Realty Trust, Inc.
 
(Exact Name of Registrant as Specified in Charter)

Maryland	 	001-34626	 	58-2328421	
(State or Other Jurisdiction
of Incorporation)	 	(Commission
File Number)	 	(IRS Employer
Identification No.)	
11695 Johns Creek Parkway Ste 350, Johns Creek, Georgia 30097
 
(Address of Principal Executive Offices)            (Zip Code)

Registrant’s telephone number, including area code	  	        (770) 418-8800	

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

Item 2.02 Results of Operations and Financial Condition
On February 10, 2011, Piedmont Office Realty Trust, Inc. (the “Registrant”) issued a press release announcing its financial results for the fourth quarter 2010, as well as the year ended December 31, 2010, and published supplemental information for the fourth quarter 2010 and for the year ended December 31, 2010 to its website. The press release and the supplemental information are attached hereto as Exhibit 99.1 and 99.2, respectively, and are incorporated herein by reference. Pursuant to the rules and regulations of the Securities and Exchange Commission, such exhibits and the information set forth therein are deemed to have been furnished and shall not be deemed to be “filed” under the Securities Exchange Act of 1934.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits:

Exhibit No.	    	Description	  	 	
99.1	    	Press release dated February 10, 2011.	
99.2	    	Piedmont Office Realty Trust, Inc. Quarterly Supplemental Information for the Fourth Quarter 2010.	
 
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: February 10, 2011
 
3

EXHIBIT INDEX

Exhibit No.	    	Description	  	 	
99.1	    	Press release dated February 10, 2011.	
99.2	    	Piedmont Office Realty Trust, Inc. Quarterly Supplemental Information for the Fourth Quarter 2010.	
 
4

Exhibit 99.1

Piedmont Office Realty Trust Reports Fourth Quarter Results
- Provides 2011 Guidance -
ATLANTA, February 10, 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 and year ended December 31, 2010.
Highlights for the Three Months and the Year Ended December 31, 2010:
 
 	•	 	Listed on the New York Stock Exchange in February 2010.	
 
 	•	 	Achieved funds from operations (“FFO”) for the fourth quarter of $0.39 per diluted share compared to $0.44 per diluted share for the same quarter in 2009; and FFO for the year of $1.59 per diluted share compared to $1.51 per diluted share for 2009.	
 
 	•	 	Leased over 780,000 square feet in the quarter at the Company’s 75 consolidated office properties, including 389,000 square feet of renewal leases and 394,000 square feet of new leases and signed over 2.1 million square feet of leases, or 10% of its portfolio, at its consolidated office properties during the year.	
 
 	•	 	Completed the acquisition of two office buildings in Minneapolis, MN, with approximately 384,000 combined square feet for $65.6 million, bringing the total number of acquisitions completed during the year to three.	
 
 	•	 	Sold two non-strategic assets during the quarter; no other dispositions were made during the year.	
Donald A. Miller, CFA, President and Chief Executive Officer, stated, “We were pleased with the amount of leasing that we completed during the quarter, and over the year as a whole, to high-quality tenants. While we remain focused on our core operations through cost control and actively addressing known forthcoming lease expirations, we have not lost sight of our strategic objectives. We are encouraged by increased activity in the market, both from a leasing and capital transactions perspective, and remain committed to selectively growing our portfolio through thoughtful acquisitions.”
Results for the Fourth Quarter Ended December 31, 2010
All prior period per share amounts have been retroactively restated to reflect the stockholder-approved recapitalization of our common stock. Current period per share amounts reflect the issuance of 13.8 million shares of common stock. Both the recapitalization and issuance of stock

occurred during the first quarter of 2010.
Piedmont’s net income available to common stockholders was $28.7 million, or $0.17 per diluted share, for the fourth quarter of 2010, compared with net income of $25.9 million, or $0.16 per diluted share, for the fourth quarter of 2009. FFO totaled $67.9 million, or $0.39 per diluted share, for the fourth quarter of 2010 as compared to FFO of $69.5 million, or $0.44 per diluted share, for the fourth quarter of 2009. The fourth quarter of 2010 FFO results reflected approximately $0.04 in dilution per share related to the issuance of 13.8 million shares of common stock during first quarter of 2010. Adjusted FFO (“AFFO”) for the fourth quarter of 2010 totaled $38.1 million, or $0.22 per diluted share, as compared to $47.4 million, or $0.30 per diluted share, in the fourth quarter of 2009, with the decline due primarily to increased capital expenditures related to new leasing activity.
Revenues for the quarter ended December 31, 2010 totaled $151.3 million, compared to $149.4 million in the same period in 2009. Property operating expenses were $60.4 million in the fourth quarter of 2010 compared to $57.3 million in the fourth quarter of 2009. Same store net operating income for the quarter was $83.0 million, 2.7% lower than the $85.3 million for the fourth quarter of 2009, reflecting primarily the impact of rental rate roll downs on some recent new leases.
Results for the Year Ended December 31, 2010
Piedmont’s net income available to common stockholders was $120.4 million, or $0.70 per diluted share, for the twelve months ended December 31, 2010, compared with net income of $74.7 million, or $0.47 per diluted share, for the comparable 2009 period. Net income exclusive of impairment charges was $130.0 million in 2010 compared to $112.3 million in 2009. FFO for the year ended December 31, 2010, totaled $271.6 million, or $1.59 per diluted share, as compared to FFO of $239.3 million, or $1.51 per diluted share, for the year ended December 31, 2009. The 2010 FFO results reflected approximately $0.12 in dilution per share related to the issuance of 13.8 million shares of common stock during first quarter of 2010. Core FFO, which excludes impairment charges, was $281.3 million, or $1.65 per diluted share, for 2010, compared to $ 276.9 million, or $1.75 per diluted share, for 2009. The 2010 Core FFO results reflected approximately $0.12 in dilution per share related to the previously mentioned issuance of 13.8 million shares of common stock during first quarter of 2010. Adjusted FFO (“AFFO”) for the year ended December 31, 2010, totaled $215.7 million, or $1.26 per diluted share, as compared to $228.4 million, or $1.44 per diluted share, for the same period in 2009.
Revenues for the year ended December 31, 2010, totaled $588.8 million compared to $598.5 million in the same period in 2009. Property operating expenses were $217.9 million in 2010 compared to $230.6 million in 2009. Same store net operating income for the year was $347.6 million, 1.4% lower than the $352.6 million in 2009.
Leasing Update

During the fourth quarter of 2010, the Company executed leases for 783,000 square feet, all of which were office leases, spread throughout its markets. Of the leases signed in the quarter, 389,000 square feet, or 50 percent, was renewal-related and 394,000 square feet was new or expansion-related with existing tenants. As of December 31, 2010, the Company’s office portfolio was 89.2 percent leased with a weighted average lease term remaining of 5.8 years. The Company’s leased percentage increased 20 basis points from the end of the third quarter, but decreased 90 basis points year over year. That year over year decrease was primarily related to the acquisition of a vacant 142,000 square foot building in the Atlanta market at the end of the third quarter. Excluding the newly-acquired building in Atlanta from consideration, the portfolio was 89.9 percent leased as of December 31, 2010. 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 its quarterly supplemental reporting package. Additional information on the quarterly supplemental reporting package can be found below.
Dividend
During the quarter ended December 31, 2010, the Company paid a quarterly dividend in the amount of $0.315 per share for all classes of common stock, bringing total dividends paid for the year ended December 31, 2010, to $1.26 per share.
Balance Sheet and Capital Markets Activities
As of December 31, 2010, Piedmont’s total gross assets were $5.3 billion with total debt of $1.4 billion. The Company’s total debt-to-gross assets ratio at the end of the fourth quarter of 2010 was 26.6 percent and the quarter’s net debt (total debt less cash and cash equivalents) to annualized core EBITDA ratio was 3.9 times. The Company’s fixed charge coverage ratio was 4.9 times. As of December 31, 2010, Piedmont had cash and capacity on its unsecured credit line of approximately $540 million. The Company has a $250 million unsecured term loan maturing in 2011.
On November 7, 2010, all of Piedmont’s 39.7 million shares of Class B-2 common stock converted on a one-for-one basis into the Company’s Class A common stock. On January 30, 2011, the final tranche of Piedmont’s Class B common stock converted on a one-for-one basis into the Company’s Class A common stock; therefore, all of the Company’s outstanding shares of common stock are now Class A common shares and traded on the New York Stock Exchange.
Acquisitions and Dispositions
As previously communicated, the Company purchased, for $65.6 million, two Class A, eight-story office buildings (the “Meridian Crossings Buildings”) containing approximately 384,000 combined rentable square feet and located in the Minneapolis, MN market. The Meridian Crossings Buildings, which were constructed in 1997 and 1998, are primarily leased through 2023 to U.S.

Bank, an existing tenant within the Piedmont portfolio. The two buildings combined are approximately 96 percent leased.
During the fourth quarter of 2010, Piedmont completed two dispositions: the sale of 111 Sylvan Avenue in Englewood Cliffs, NJ for $55 million; and the sale of a joint venture property, of which Piedmont’s proportionate share was approximately 4 percent, for $5.3 million.
Guidance for 2011
The Company introduced its financial guidance for full-year 2011 based upon 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 any significant acquisitions or dispositions which would result in a change in the Company’s 2011 outlook and guidance. 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, Net income exclusive of impairment charges, 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, February 11, 2011 at 10:00 A.M. Eastern Time. Dial-in numbers are (877) 407-9039 for participants in the United States and (201) 689-8470 for international participants. The conference identification number is 365345. The live audio webcast of the call may be accessed on the Company’s website at www.piedmontreit.com in the Investor Relations section. A replay of the conference call will be available until February 25, 2010, and can be accessed by dialing (877) 870-5176, or (858) 384-

5517 for international participants, followed by passcode 365345. 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 fourth quarter 2010 performance, discuss recent events, and conduct a question-and-answer period.
Supplemental Information
Quarterly Supplemental Information as of and for the three and twelve months ended December 31, 2010, can be accessed on the Company’s website under the Investor Relations section at www.piedmontreit.com.
About Piedmont Office Realty Trust
Piedmont Office Realty Trust, Inc. is a fully-integrated and self-managed real estate investment trust (“REIT”) specializing in the acquisition, ownership, management, development and disposition of primarily high-quality Class A office buildings located predominantly in large U.S. office markets and leased principally to high-credit-quality tenants. Since its first acquisition in 1998, the Company has acquired $5.5 billion of office and industrial properties. Rated as an investment-grade company by Standard & Poor’s and Moody’s, Piedmont has maintained a low-leverage strategy while acquiring its properties.
Forward Looking Statements
Certain statements contained in this press release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We intend for all such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, as applicable. Such information is subject to certain risks and uncertainties, as well as known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of our performance in future periods. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “continue” or similar words or phrases that are predictions of future events or trends and which do not relate solely to historical matters. Examples of such statements in this press release include the quality of the Company’s assets; the Company’s leasing and transactional activity prospects; 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 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 our Quarterly Report on Form 10-Q as of and for the period ended September 30, 2010, and other documents we file with the Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. We cannot guarantee the accuracy of any such forward-looking statements contained in this press release, and we do not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Research Analysts Contact:
Eddie Guilbert
770-418-8592
research.analysts@piedmontreit.com
or
ICR Inc.
Evelyn Infurna
203-682-8346
Evelyn.infurna@icrinc.com
All Other Shareholder Inquiries, Contact:
Shareholder Relations
866-354-3485
investor.services@piedmontreit.com

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

 
 	 	 	 	 	 	 	 	 	
 	  	December 31, 2010	 	 	December 31, 2009	 	
 	 	 	
Assets:	  	 	 	 	 	 	 	 	
Real estate assets, at cost:	  	 	 	 	 	 	 	 	
Land	  	$	647,653	  	 	$	651,876	  	
Buildings and improvements	  	 	3,688,751	  	 	 	3,663,391	  	
Buildings and improvements, accumulated depreciation	  	 	(744,756	) 	 	 	(665,068	) 	
Intangible lease asset	  	 	219,770	  	 	 	243,312	  	
Intangible lease asset, accumulated amortization	  	 	(145,742	) 	 	 	(147,043	) 	
Construction in progress	  	 	11,152	  	 	 	17,059	  	
 	  	 	 	 	 	 	 	 	
Total real estate assets	  	 	3,676,828	  	 	 	3,763,527	  	
 	 	 	
Investment in unconsolidated joint ventures	  	 	42,018	  	 	 	43,940	  	
Cash and cash equivalents	  	 	56,718	  	 	 	10,004	  	
Tenant receivables, net of allowance for doubtful accounts	  	 	28,849	  	 	 	33,071	  	
Straight line rent receivable	  	 	105,157	  	 	 	95,371	  	
Notes receivable	  	 	61,144	  	 	 	58,739	  	
Due from unconsolidated joint ventures	  	 	1,158	  	 	 	1,083	  	
Prepaid expenses and other assets	  	 	23,724	  	 	 	21,456	  	
Goodwill	  	 	180,097	  	 	 	180,097	  	
Deferred financing costs, less accumulated amortization	  	 	5,306	  	 	 	7,205	  	
Deferred lease costs, less accumulated amortization	  	 	192,481	  	 	 	180,852	  	
 	  	 	 	 	 	 	 	 	
Total assets	  	$	4,373,480	  	 	$	4,395,345	  	

Liabilities:	  	 	 	 	 	 	 	 	
Line of credit and notes payable	  	$	1,402,525	  	 	 	1,516,525	  	
Accounts payable, accrued expenses, and accrued capital expenditures	  	 	112,648	  	 	 	97,747	  	
Deferred income	  	 	35,203	  	 	 	34,506	  	
Intangible lease liabilities, less accumulated amortization	  	 	48,959	  	 	 	60,655	  	
Interest rate swap	  	 	691	  	 	 	3,866	  	
 	  	 	 	 	 	 	 	 	
Total liabilities	  	 	1,600,026	  	 	 	1,713,299	  	
 	 	 	
Redeemable common stock	  	 	-  	  	 	 	75,164	  	
 	 	 	
Stockholders’ equity :	  	 	 	 	 	 	 	 	
Class A common stock	  	 	1,330	  	 	 	397	  	
Class B-1 common stock	  	 	-  	  	 	 	397	  	
Class B-2 common stock	  	 	-  	  	 	 	397	  	
Class B-3 common stock	  	 	397	  	 	 	398	  	
Additional paid in capital	  	 	3,661,308	  	 	 	3,477,168	  	
Cumulative distributions in excess of earnings	  	 	(895,122	) 	 	 	(798,561	) 	
Redeemable common stock	  	 	-  	  	 	 	(75,164	) 	
Other comprehensive loss	  	 	(691	) 	 	 	(3,866	) 	
 	  	 	 	 	 	 	 	 	
Piedmont stockholders’ equity	  	 	2,767,222	  	 	 	2,601,166	  	
Non-controlling interest	  	 	6,232	  	 	 	5,716	  	
 	  	 	 	 	 	 	 	 	
Total stockholders’ equity	  	 	2,773,454	  	 	 	2,606,882	  	
 	  	 	 	 	 	 	 	 	
Total liabilities, redeemable common stock and stockholders’ equity	  	$	4,373,480	  	 	$	4,395,345	  	

Net Debt (Total debt less cash and cash equivalents)	  	$	1,345,807	  	 	$	1,506,521	  	
Total Gross Assets (1)	  	$	5,263,978	  	 	$	5,207,456	  	
All classes of common stock outstanding at end of period	  	 	172,658	  	 	 	158,917	  	
 
(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	 	 	For the Year Ended	 	
 	  	12/31/2010	 	 	12/31/2009	 	 	12/31/2010	 	 	12/31/2009	 	
Revenues:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental income	  	$	110,778	  	 	$	110,405	  	 	$	442,687	  	 	$	443,436	  	
Tenant reimbursements	  	 	36,997	  	 	 	36,108	  	 	 	135,145	  	 	 	149,193	  	
Property management fee revenue	  	 	948	  	 	 	928	  	 	 	3,212	  	 	 	3,111	  	
Other rental income	  	 	2,589	  	 	 	1,982	  	 	 	7,794	  	 	 	2,764	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	151,312	  	 	 	149,423	  	 	 	588,838	  	 	 	598,504	  	
 	 	 	 	 	
Operating expenses:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property operating costs	  	 	60,401	  	 	 	57,281	  	 	 	217,871	  	 	 	230,588	  	
Depreciation	  	 	26,685	  	 	 	26,701	  	 	 	103,971	  	 	 	104,516	  	
Amortization	  	 	11,523	  	 	 	16,172	  	 	 	44,931	  	 	 	57,300	  	
General and administrative	  	 	7,824	  	 	 	6,219	  	 	 	29,201	  	 	 	27,315	  	
Impairment loss on real estate assets	  	 	-  	  	 	 	-  	  	 	 	-  	  	 	 	35,063	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses	  	 	106,433	  	 	 	106,373	  	 	 	395,974	  	 	 	454,782	  	

Real estate operating income	  	 	44,879	  	 	 	43,050	  	 	 	192,864	  	 	 	143,722	  	
 	 	 	 	 	
Other income (expense):	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest expense	  	 	(17,378	) 	 	 	(19,488	) 	 	 	(72,761	) 	 	 	(77,743	) 	
Interest and other income	  	 	491	  	 	 	652	  	 	 	3,489	  	 	 	4,450	  	
Equity in income of unconsolidated joint ventures	  	 	630	  	 	 	672	  	 	 	2,633	  	 	 	104	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total other income (expense)	  	 	(16,257	) 	 	 	(18,164	) 	 	 	(66,639	) 	 	 	(73,189	) 	

Income from continuing operations	  	 	28,622	  	 	 	24,886	  	 	 	126,225	  	 	 	70,533	  	
 	 	 	 	 	
Operating income, excluding impairment loss	  	 	1,017	  	 	 	1,179	  	 	 	5,089	  	 	 	4,645	  	
Impairment loss	  	 	-  	  	 	 	-  	  	 	 	(9,587	) 	 	 	-  	  	
Gain (loss) on sale of real estate assets	  	 	(817	) 	 	 	-  	  	 	 	(817	) 	 	 	-  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Discontinued operations	  	 	200	  	 	 	1,179	  	 	 	(5,315	) 	 	 	4,645	  	

Net income	  	 	28,822	  	 	 	26,065	  	 	 	120,910	  	 	 	75,178	  	
 	 	 	 	 	
Less: Net income attributable to noncontrolling interest	  	 	(122	) 	 	 	(119	) 	 	 	(531	) 	 	 	(478	) 	

Net income attributable to Piedmont	  	$	28,700	  	 	$	25,946	  	 	$	120,379	  	 	$	74,700	  	

Weighted average common shares outstanding - diluted	  	 	172,996	  	 	 	158,393	  	 	 	170,967	  	 	 	158,581	  	
 	 	 	 	 	
Net income per share available to common stockholders - diluted	  	$	0.17	  	 	$	0.16	  	 	$	0.70	  	 	$	0.47	  	

 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	
Reconciliation of Net Income Excluding Impairment Charges:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	
Net income attributable to Piedmont	  	 	 	 	 	 	 	 	 	$	120,379	  	 	$	74,700	  	
Impairment losses on consolidated properties	  	 	 	 	 	 	 	 	 	 	9,587	  	 	 	35,063	  	
Impairment losses from unconsolidated JVs	  	 	 	 	 	 	 	 	 	 	53	  	 	 	2,570	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income available to stockholders, exclusive of impairment charges	  	 	 	 	 	 	 	 	 	$	130,019	  	 	$	112,333	  	

Weighted average common shares outstanding - diluted	  	 	 	 	 	 	 	 	 	 	170,967	  	 	 	158,581	  	
 	 	 	 	 	
Net income per share available to stockholders, exclusive of impairment charges - diluted	  	 	 	 	 	 	 	 	 	$	0.76	  	 	$	0.71	  	

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	 	 	Year Ended	 	
 	  	12/31/2010	 	 	12/31/2009	 	 	12/31/2010	 	 	12/31/2009	 	
Net income attributable to Piedmont	  	$	28,700	  	 	$	25,946	  	 	$	120,379	  	 	$	74,700	  	
 	 	 	 	 	
Depreciation (1) (2)	  	 	26,821	  	 	 	27,264	  	 	 	105,107	  	 	 	106,878	  	
Amortization (1)	  	 	11,623	  	 	 	16,274	  	 	 	45,334	  	 	 	57,708	  	
Net Loss on Sales of Properties(1)	  	 	792	  	 	 	-	  	 	 	792	  	 	 	-	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Funds from operations	  	 	67,936	  	 	 	69,484	  	 	 	271,612	  	 	 	239,286	  	
 	 	 	 	 	
Impairment loss on real estate assets (1)	  	 	-	  	 	 	-	  	 	 	9,640	  	 	 	37,633	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core funds from operations	  	 	67,936	  	 	 	69,484	  	 	 	281,252	  	 	 	276,919	  	
 	 	 	 	 	
Depreciation of non real estate assets	  	 	173	  	 	 	171	  	 	 	707	  	 	 	632	  	
Stock-based and other non-cash compensation expense	  	 	1,223	  	 	 	671	  	 	 	3,681	  	 	 	3,178	  	
Deferred financing cost amortization	  	 	608	  	 	 	696	  	 	 	2,608	  	 	 	2,786	  	
Straight-line effects of lease revenue (1)	  	 	(3,456	) 	 	 	(1,618	) 	 	 	(6,088	) 	 	 	(997	) 	
Amortization of lease-related intangibles (1)	  	 	(1,331	) 	 	 	(1,663	) 	 	 	(5,793	) 	 	 	(5,399	) 	
Income from amortization of discount on purchase of mezzanine loans	  	 	(473	) 	 	 	(334	) 	 	 	(2,405	) 	 	 	(2,278	) 	
Non-incremental capital expenditures(3)	  	 	(26,594	) 	 	 	(19,974	) 	 	 	(58,305	) 	 	 	(46,452	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted funds from operations	  	$	38,086	  	 	$	47,433	  	 	$	215,657	  	 	$	228,389	  	

Weighted average common shares outstanding-diluted	  	 	172,996	  	 	 	158,393	  	 	 	170,967	  	 	 	158,581	  	
 	 	 	 	 	
Funds from operations per share (diluted)	  	$	0.39	  	 	$	0.44	  	 	$	1.59	  	 	$	1.51	  	
Core funds from operations per share (diluted)	  	$	0.39	  	 	$	0.44	  	 	$	1.65	  	 	$	1.75	  	
Adjusted funds from operations per share (diluted)
 	  	$
 	0.22
 	  
 	 	$
 	0.30
 	  
 	 	$
 	1.26
 	  
 	 	$
 	1.44

(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	 	 	Year Ended	 	
 	  	12/31/2010	 	 	12/31/2009	 	 	12/31/2010	 	 	12/31/2009	 	
Net income attributable to Piedmont	  	$	28,700	  	 	$	 25,946	  	 	$	 120,379	  	 	$	74,700	  	
 	 	 	 	 	
Net income attributable to non-controlling interest	  	 	122	  	 	 	119	  	 	 	531	  	 	 	478	  	
Interest Expense	  	 	17,378	  	 	 	19,488	  	 	 	72,761	  	 	 	77,743	  	
Depreciation	  	 	26,995	  	 	 	27,434	  	 	 	105,814	  	 	 	107,510	  	
Amortization	  	 	11,623	  	 	 	16,274	  	 	 	45,334	  	 	 	57,708	  	
Impairment loss on real estate assets	  	 	-  	  	 	 	-  	  	 	 	9,640	  	 	 	37,633	  	
Net loss on sales of properties(1)	  	 	792	  	 	 	-  	  	 	 	792	  	 	 	-  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core EBITDA*	  	 	85,610	  	 	 	89,261	  	 	 	355,251	  	 	 	355,772	  	
 	 	 	 	 	
General & administrative expenses	  	 	7,934	  	 	 	6,297	  	 	 	29,624	  	 	 	27,558	  	
Management fee revenue	  	 	(948	) 	 	 	(928	) 	 	 	(3,212	) 	 	 	(3,111	) 	
Interest and other income	  	 	(491	) 	 	 	(652	) 	 	 	(3,489	) 	 	 	(4,450	) 	
Lease termination income	  	 	(2,589	) 	 	 	(1,982	) 	 	 	(7,794	) 	 	 	(2,764	) 	
Lease termination expense - straight line rent & acquisition intangibles write-offs	  	 	461	  	 	 	552	  	 	 	1,338	  	 	 	1,353	  	
Straight line rent adjustment	  	 	(3,791	) 	 	 	(2,619	) 	 	 	(7,300	) 	 	 	(2,809	) 	
Net effect of amortization of below-market in-place lease intangibles	  	 	(1,457	) 	 	 	(1,212	) 	 	 	(5,919	) 	 	 	(4,939	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core net operating income (cash basis)*	  	 	84,729	  	 	 	88,717	  	 	 	358,499	  	 	 	366,610	  	
 	 	 	 	 	
Acquisitions	  	 	881	  	 	 	-  	  	 	 	883	  	 	 	-  	  	
Dispositions	  	 	(1,119	) 	 	 	(1,672	) 	 	 	(6,169	) 	 	 	(6,667	) 	
Industrial properties	  	 	(347	) 	 	 	(638	) 	 	 	(803	) 	 	 	(2,559	) 	
Unconsolidated joint ventures	  	 	(1,165	) 	 	 	(1,156	) 	 	 	(4,835	) 	 	 	(4,793	) 	

Same Store NOI*	  	$	82,979	  	 	$	85,251	  	 	$	347,575	  	 	$	352,591	  	

Year over Year change in same store NOI	  	 	-2.7	% 	 	 	 	 	 	 	-1.4	% 	 	 	 	 	
 	 	 	 	 	
Fixed Charge Coverage Ratio (Core EBITDA/ Interest Expense) (1)	  	 	4.9	  	 	 	 	 	 	 	 	 	 	 	 	 	
Annualized Core EBITDA (Core EBITDA x 4)	  	$	342,440	  	 	 	 	 	 	 	 	 	 	 	 	 	
 
(1)	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
December 31, 2010

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

Piedmont Office Realty Trust, Inc.
Quarterly Supplemental Information
Index

 
 	 	 	 	 	
 	  	Page	 	
 	 	
Introduction	  	 	 	 	
Corporate Data	  	 	3	  	
Investor Information	  	 	4	  	
Financial Highlights	  	 	5-7	  	
Key Performance Indicators	  	 	8	  	
 	 	
Financials	  	 	 	 	
Balance Sheet	  	 	9	  	
Income Statements	  	 	10-11	  	
Funds From Operations / Adjusted Funds From Operations	  	 	12	  	
Same Store Analysis	  	 	13-14	  	
Capitalization Analysis	  	 	15	  	
Debt Summary	  	 	16	  	
Debt Detail	  	 	17	  	
Debt Analysis	  	 	18	  	
 	 	
Operational & Portfolio Information - Office Investments	  	 	 	 	
Tenant Diversification	  	 	19	  	
Tenant Credit Rating & Lease Distribution Information	  	 	20	  	
Leasing Activity	  	 	21	  	
Lease Expiration Schedule	  	 	22	  	
Annual Lease Expirations	  	 	23	  	
Capital Expenditures & Commitments	  	 	24	  	
Contractual Tenant Improvements & Leasing Commissions	  	 	25	  	
Geographic Diversification	  	 	26	  	
Industry Diversification	  	 	27	  	
 	 	
Other Investments	  	 	 	 	
Other Investments Detail	  	 	28	  	
 	 	
Supporting Information	  	 	 	 	
Definitions	  	 	29-30	  	
Research Coverage	  	 	31	  	
Non-GAAP Reconciliations	  	 	32-35	  	
Risks, Uncertainties and Limitations	  	 	36	  	

Please refer to page 36 for a discussion of important risks related to the business of Piedmont Office Realty Trust, as well as an investment in its securities, including risks that could cause actual results and events to differ materially from results and events referred to in the forward-looking information. Considering these risks, uncertainties, assumptions, and limitations, the forward-looking events contained in this supplemental reporting package might not occur.
Certain prior period amounts have been reclassified to conform to the current period financial statement presentation. In addition, many of the schedules herein contain rounding to the nearest thousands or millions and, therefore, the schedules may not total due to this rounding convention.

Piedmont Office Realty Trust, Inc.
Corporate Data

Piedmont Office Realty Trust, Inc. (“Piedmont” or the “Company”) (NYSE: PDM) is a fully-integrated and self-managed real estate investment trust (“REIT”) specializing in the acquisition, ownership, management, development and disposition of primarily high-quality Class A office buildings located predominately in large U.S. office markets and leased principally to high-credit-quality tenants. Since its first acquisition in 1998, the Company has acquired $5.5 billion of office and industrial properties (inclusive of joint ventures) through December 31, 2010. 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 82% of our Annualized Lease Revenue (“ALR”) (1)  is derived from our office properties located within the ten largest U.S. office markets, including Chicago, Washington, D.C., the New York metropolitan area, Boston and greater Los Angeles.
This data supplements the information provided in our reports filed with the Securities and Exchange Commission.

 	  	As of
    December 31, 2010    	 	  	As of
    December 31, 2009    	 	
Number of properties (2)	  	 	75	  	  	 	73	  	
Rentable square footage (in thousands) (2)	  	 	20,408	  	  	 	20,229	  	
Percent leased (3)	  	 	89.2%	  	  	 	90.1%	  	
Capitalization (in thousands):	  	 	 	 	  	 	 	 	
Total debt	  	 	$1,402,525	  	  	 	$1,516,525	  	
Equity market capitalization (4)	  	 	$3,477,342	  	  	 	$ N/A	  	
Total market capitalization (4)	  	 	$4,879,867	  	  	 	$ N/A	  	
Debt / Total market capitalization (4)	  	 	28.7%	  	  	 	N/A	  	
Common stock data	  	 	 	 	  	 	 	 	
High closing price during quarter (4)	  	 	$20.31	  	  	 	$ N/A	  	
Low closing price during quarter (4)	  	 	$18.25	  	  	 	$ N/A	  	
Closing price of Class A common stock at period end (4)	  	 	$20.14	  	  	 	$ N/A	  	
Weighted average fully diluted shares outstanding (in thousands) (5) (6)	  	 	170,967	  	  	 	158,581	  	
Shares of common stock issued and outstanding (in thousands) (6)	  	 	172,658	  	  	 	158,917	  	
Rating / outlook	  	 	 	 	  	 	 	 	
Standard & Poor’s	  	 	BBB / Stable	  	  	 	BBB / Stable	  	
Moody’s	  	 	Baa2 / Stable	  	  	 	Baa3 / Positive	  	
Employees (7)	  	 	110	  	  	 	107	  	

 
(1)	The definition for Annualized Lease Revenue can be found on page 29.	
(2)	Our office portfolio currently consists of 75 properties (exclusive of our equity interests in seven properties owned through unconsolidated joint ventures and our two industrial properties). During the fourth quarter of 2010, we acquired Meridian Crossings, two buildings comprised of 384,000 square feet, and sold 111 Sylvan Avenue comprised of 410,000 square feet. We also completed the sale of 14400 Hertz Quail Springs Parkway, a 57,000 square foot joint venture property located in Oklahoma City, OK; our ownership in this joint venture was 4%.	
(3)	Calculated as leased square footage on December 31, 2010 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 75 office properties and excludes industrial and unconsolidated joint venture properties. During the third quarter of 2010, we acquired a vacant 142,000 square foot building; if we excluded this building from consideration, our percent leased would be 89.9%.	
(4)	Our Class A common stock was listed on the New York Stock Exchange on February 10, 2010; there is no market data as of December 31, 2009. As of 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)	On January 22, 2010, we filed an amendment to our charter to effect a recapitalization of our common stock as described further in our SEC filings. The recapitalization had the effect of a one-for-three reverse stock split. Prior period share and per share information in this report have been restated to reflect this recapitalization. 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 year-over-year increase in shares outstanding.	
(7)	During the second quarter of 2010, the company opened a regional management office in Boston. The opening of that office is the primary reason for the increase in number of employees.	
 
3

Piedmont Office Realty Trust, Inc.
Investor Information

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

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

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

Piedmont Office Realty Trust, Inc.
Financial Highlights
As of December 31, 2010

 
 	
On January 22, 2010, we filed an amendment to our charter to effect a recapitalization of our common stock as described further in our Securities and Exchange Commission (“SEC”) filings. Upon the effectiveness of the recapitalization, each share of our outstanding common stock converted automatically into: (a) 1/12th of a share of our Class A common stock; plus (b) 1/12th of a share of our Class B-1 common stock; plus (c) 1/12th of a share of our Class B-2 common stock; plus (d) 1/12th of a share of our Class B-3 common stock. The recapitalization had the effect of a one-for-three reverse stock split. Prior period share and per share information in this report have been restated to reflect this recapitalization. Class B-1 common stock converted automatically into Class A common stock on August 9, 2010; Class B-2 common stock converted automatically into Class A common stock on November 7, 2010; and Class B-3 common stock converted subsequent to 2010 year end into Class A common stock on January 30, 2011.	
 	
Financial Results (1)                    	
-  Funds from operations (FFO) for the quarter ended December 31, 2010 was $67.9M, or $0.39 per share (diluted), compared to $69.5M, or $0.44 per share (diluted), for the same quarter in 2009. FFO for the twelve months ended December 31, 2010 was $271.6M, or $1.59 per share (diluted), compared to $239.3M, or $1.51 per share (diluted), for the same period in 2009. The increase in FFO for the twelve months ended December 31, 2010 as compared to the same period in 2009 was primarily due to differences in the amount of impairment charges in each year; specifically, $9.6M in impairment charges associated with one wholly-owned property and one joint venture interest were recognized in 2010 as compared to the recognition of $37.6M in impairment charges on three wholly-owned properties and one joint venture interest in the third quarter of 2009. Additionally, higher termination income and lower interest expense in 2010 contributed to the year-over-year increase.
 
-  Core funds from operations (Core FFO) for the quarter ended December 31, 2010 was $67.9M, or $0.39 per share (diluted), compared to $69.5M, or $0.44 per share (diluted), for the same quarter in 2009. Core FFO for the twelve months ended December 31, 2010 was $281.3M, or $1.65 per share (diluted), compared to $276.9M, or $1.75 per share (diluted), for the same period in 2009. The increase in Core FFO for the twelve months ended December 31, 2010 as compared to the same period in 2009 was primarily due to higher termination income and lower interest expense in 2010. The decrease in per share amounts of Core FFO for the three months and the twelve months ended December 31, 2010 as compared to the same periods in 2009 was primarily due to the dilutive effect of the 13.8 million shares of Class A common stock issued when the Company listed on the NYSE in February 2010.
 
-  Adjusted funds from operations (AFFO) for the quarter ended December 31, 2010 was $38.1M, or $0.22 per share (diluted), compared to $47.4M, or $0.30 per share (diluted), for the same quarter in 2009. AFFO for the twelve months ended December 31, 2010 was $215.7M, or $1.26 per share (diluted), compared to $228.4M, or $1.44 per share (diluted), for the same period in 2009. The decrease in AFFO for the three months and the twelve months ended December 31, 2010 as compared to the same periods in 2009 was primarily due to increased capital expenditures and higher straight line rent adjustments in 2010 associated with new leasing activity, partially offset by higher termination income and lower interest expense in 2010. The per share amounts of AFFO are also lower in 2010 as compared to 2009 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 December 31, 2010, the Company paid to stockholders a quarterly dividend in the amount of $0.315 per share for all classes of common stock, or a total of $1.26 per share for the year, as compared to Core FFO per share of $1.65 and AFFO per share of $1.26 for the year.	
 	
Operations                                     	
-  On a square footage basis, our portfolio was 89.2% leased as of December 31, 2010 as compared to 89.0% and 90.1% as of September 30, 2010 and December 31, 2009, respectively. The decrease in the office portfolio leased percentage during the year is primarily related to the acquisition of a vacant 142,000 square foot building in the Atlanta market at the end of the third quarter. Excluding the newly acquired building from consideration, the portfolio would have been 89.9% leased as of December 31, 2010.
 
-  The weighted average remaining lease term of our portfolio was 5.8 years(2) as of December 31, 2010 as compared to 5.9 years at December 31, 2009.
 
-  As noted in our December 31, 2009 Quarterly Supplemental Information, 6.8% of our Annualized Lease Revenue was set to expire in 2010 and a majority of this expiration was to take place in the fourth quarter. During the three months ended December 31, 2010, the Company completed 783,000 square feet of leasing at our 75 consolidated office properties. We executed renewal leases for 389,000 square feet and new tenant leases for 394,000 square feet, bringing the year-to-date total office leasing activity to 2,108,000 square feet, with an average committed capital cost of $3.88 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 year was $2.76 and average committed capital cost per square foot per year of lease term for new leases was $5.60. From an industrial leasing perspective, we did not execute any new leases during the quarter, maintaining the same year-to-date total industrial leasing activity of 487,000 square feet with an average committed capital cost of $0.21 per square foot per year of lease term.	

(1) FFO, Core FFO and AFFO are supplemental non-GAAP financial measures. See pages 29-30 for definitions of non-GAAP financial measures. See pages 12 and 34 for reconciliations of FFO, Core FFO and AFFO to Net Income.
(2) Remaining lease term (after taking into account leases which had been executed but not commenced as of December 31, 2010) is weighted based on Annualized Lease Revenue, as defined on page 29.
 
5

Piedmont Office Realty Trust, Inc.
Financial Highlights
As of December 31, 2010

 
 	-	During the three months ended December 31, 2010, we retained tenants for 66% of the square footage associated with expiring leases. During the twelve months ended December 31, 2010, we retained tenants for 72% of the square footage associated with expiring leases. These results compare to a 78% retention rate for the year ended December 31, 2009.	
 
 	-	During the three months ended December 31, 2010, we executed ten 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	
Panasonic Avionics Corporation	  	26200 Enterprise Way	  	Lake Forest, CA	  	144,906	  	2022	  	Renewal	
The Henry M. Jackson Foundation
for the Advancement of Military
Medicine	  	Piedmont Pointe I	  	Bethesda, MD	  	124,516	  	2022	  	New	
International Securities Exchange	  	60 Broad Street	  	New York, NY	  	64,395	  	2021	  	Renewal	
Thoughtworks	  	Aon Center	  	Chicago, IL	  	52,529	  	2023	  	New	
Butzel Long	  	150 West Jefferson	  	Detroit, MI	  	48,669	  	2022	  	Renewal/Contraction	
KPMG	  	150 West Jefferson	  	Detroit, MI	  	40,250	  	2020	  	Renewal/Expansion	
Coventry Health Care	  	Piedmont Pointe II	  	Bethesda, MD	  	33,558	  	2022	  	New	
AT&T	  	2001 NW 64th Street	  	Ft. Lauderdale, FL	  	26,222	  	2016	  	Renewal/Contraction	
Teradata	  	11695 Johns Creek Parkway	  	Johns Creek, GA	  	25,230	  	2018	  	Renewal/Expansion	
Rockwell Automation	  	1441 West Long Lake Road	  	Troy, MI	  	24,562	  	2018	  	New	
Leasing Update                                        
 
 	-	A total of six leases are scheduled to expire during the years 2011 and 2012 that contribute greater than 1% of Annualized Lease Revenue. Information regarding the leasing status of the spaces associated with those leases is as follows:	

Tenant Name	 	Property	 	Property Location	 	Square
Footage  (1)	 	Percentage of Annualized
Lease Revenue (%)	 	Expiration (2)	 	Leasing Status	
United States of America
(Comptroller of the Currency)	 	One Independence
Square	 	Washington, D.C.	 	322,984	 	3.1%	 	Q2 2011	 	The Company is in discussions with the current tenant for a lease renewal of the entire space. 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	 	1.9%	 	Q3 2011	 	Space has been substantially sublet by the tenant. The Company is in discussions with sublessees for direct leases and actively marketing the space for lease.
 	
Kirkland & Ellis	 	Aon Center	 	Chicago, IL	 	331,887	 	1.8%	 	Q4 2011	 	Kirkland & Ellis is vacating. KPMG has leased 218,123 SF beginning in August 2012, the majority of which is space currently leased to Kirkland & Ellis. Pursuant to its lease, KPMG elected during Q4 2010 to reduce the amount of space it will lease by 45,517 SF. The 218,123 SF total figure presented above is net of the contraction.	
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 likely be vacating at lease expiration.	
United States of
America (NASA)	 	Two Independence
Square	 	Washington, D.C.	 	551,907	 	4.5%	 	Q3 2012	 	The Company is in discussions with the current tenant for a lease renewal of the entire space.	
United States of America (National
Park Service)	 	1201 Eye Street	 	Washington, D.C.	 	219,750	 	1.7%	 	Q3 2012	 	Discussions with the current tenant have not yet commenced.	

(1) 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 December 31, 2010

 
 Financing and Capital Activity            
 
 	-	 	As of December 31, 2010, our ratio of debt to total market capitalization was 28.7%; our ratio of debt to gross real estate assets was 30.7%; and our ratio of debt to total gross assets was 26.6%.	
 
 	-	 	On December 8, 2010, Piedmont sold 111 Sylvan Avenue in Englewood Cliffs, NJ. The sale allowed Piedmont to exit a non-strategic asset, as well as avoid re-leasing exposure. The results from operations for the asset are presented in discontinued operations. Piedmont recognized a loss on the sale of the asset, the majority of which was included in impairment charges recognized during the second quarter of 2010.	
 
 	-	 	On October 1, 2010, Piedmont completed the purchase of Meridian Crossings, two buildings totaling 384,000 square feet in suburban Minneapolis, MN. The buildings are 96% leased. Approximately 88% of the total square footage in both buildings is leased by U.S. Bank, a tenant with which Piedmont has significant existing business relationships. U.S. Bank’s lease extends through 2023. U.S. Bank has become the third largest tenant in Piedmont’s portfolio as a result of this acquisition.	
 
 	-	 	On October 15, 2010, Piedmont, along with its joint venture partners, sold 14400 Hertz Quail Springs Parkway, a 57,000 square foot building in Oklahoma City, OK, for $5.3 million. Piedmont’s ownership in the property was approximately 4%. Piedmont recognized a $25,000 gain on the sale of its interest in the asset.	
 
 	-	 	On November 7, 2010, all of Piedmont’s 39.7 million shares of Class B-2 common stock converted on a one-for-one basis into Class A common stock.	
 
 	-	 	On November 9, 2010, the board of directors of Piedmont declared dividends for the fourth quarter of 2010 in the amount of $0.315 per share on all classes of outstanding common shares of Piedmont to stockholders of record as of the close of business on December 1, 2010. The dividends were paid on December 15, 2010.	
 Subsequent Events                              
 
 	-	 	Effective January 10, 2011, Bank of New York Mellon became Piedmont’s transfer agent.	
 
 	-	 	On January 30, 2010, Piedmont’s 39.7 million shares of Class B-3 common stock converted on a one-for-one basis into Class A common stock.	
 
 	-	 	Piedmont, as a mezzanine lender, continues to pursue its rights to foreclose the equity interests in 500 West Monroe in Chicago, IL. On January 13, 2011, a New York appellate court ruled in Piedmont’s favor, affirming its ability to conduct a foreclosure auction of the equity interests under the Uniform Commercial Code; however, in response to that ruling, the current equity owner has filed a further appeal. For additional information on Piedmont’s mezzanine loan investments, please refer to page 28 herein and our Quarterly Report on Form 10-Q as of and for the period ended September 30, 2010.	
 Guidance for 2011                                
 
 	-	 	The following financial guidance for calendar year 2011 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 any significant acquisitions or dispositions which would result in a change in the Company’s 2011 outlook and guidance. 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 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 29-30 and reconciliations are provided on pages 32-35.

 	 	Three Months Ended	 	
 
 Selected Operating Data	 	 
      12/31/2010      	 	 	 
      9/30/2010      	 	 	 
      6/30/2010      	 	 	 
      3/31/2010      	 	 	 
      12/31/2009      	 	
 	 	 	 	 	 	
Percent leased (1)	 	 	89.2%	  	 	 	89.0%	  	 	 	89.8%	  	 	 	89.6%	  	 	 	90.1%	  	
 	 	 	 	 	 	
Rental income	 	 	$110,778	  	 	 	$110,776	  	 	 	$110,623	  	 	 	$110,512	  	 	 	$110,405	  	
 	 	 	 	 	 	
Total revenues	 	 	$151,312	  	 	 	$145,502	  	 	 	$145,181	  	 	 	$146,844	  	 	 	$149,423	  	
 	 	 	 	 	 	
Total operating expenses	 	 	$106,433	  	 	 	$90,447	  	 	 	$100,037	  	 	 	$99,059	  	 	 	$106,373	  	
 	 	 	 	 	 	
Real estate operating income	 	 	$44,879	  	 	 	$55,055	  	 	 	$45,144	  	 	 	$47,785	  	 	 	$43,050	  	
 	 	 	 	 	 	
Impairment losses on real estate assets (2)	 	 	$0	  	 	 	$53	  	 	 	$9,587	  	 	 	$0	  	 	 	$0	  	
 	 	 	 	 	 	
Core EBITDA (3)	 	 	$85,610	  	 	 	$95,612	  	 	 	$85,435	  	 	 	$88,592	  	 	 	$89,261	  	
 	 	 	 	 	 	
Core FFO	 	 	$67,936	  	 	 	$77,919	  	 	 	$66,199	  	 	 	$69,198	  	 	 	$69,484	  	
 	 	 	 	 	 	
Core FFO per share - diluted	 	 	$0.39	  	 	 	$0.45	  	 	 	$0.38	  	 	 	$0.42	  	 	 	$0.44	  	
 	 	 	 	 	 	
AFFO (3)	 	 	$38,086	  	 	 	$61,468	  	 	 	$55,812	  	 	 	$60,290	  	 	 	$47,433	  	
 	 	 	 	 	 	
AFFO per share - diluted	 	 	$0.22	  	 	 	$0.36	  	 	 	$0.32	  	 	 	$0.36	  	 	 	$0.30	  	
 	 	 	 	 	 	
Gross dividends	 	 	$54,388	  	 	 	$54,388	  	 	 	$54,388	  	 	 	$53,777	  	 	 	$49,733	  	
 	 	 	 	 	 	
Dividends per share	 	 	$0.315	  	 	 	$0.315	  	 	 	$0.315	  	 	 	$0.315	  	 	 	$0.315	  	
 	 	 	 	 	 	
 Selected Balance Sheet Data	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	
Total real estate assets	 	 	$3,676,828	  	 	 	$3,689,428	  	 	 	$3,704,757	  	 	 	$3,737,478	  	 	 	$3,763,527	  	
 	 	 	 	 	 	
Total gross real estate assets	 	 	$4,567,326	  	 	 	$4,573,622	  	 	 	$4,560,176	  	 	 	$4,571,837	  	 	 	$4,575,638	  	
 	 	 	 	 	 	
Total assets	 	 	$4,373,480	  	 	 	$4,389,585	  	 	 	$4,405,501	  	 	 	$4,428,410	  	 	 	$4,395,345	  	
 	 	 	 	 	 	
Net debt (4)	 	 	$1,345,807	  	 	 	$1,334,986	  	 	 	$1,321,459	  	 	 	$1,325,531	  	 	 	$1,506,521	  	
 	 	 	 	 	 	
Total liabilities	 	 	$1,600,026	  	 	 	$1,591,653	  	 	 	$1,594,278	  	 	 	$1,584,781	  	 	 	$1,713,299	  	
 	 	 	 	 	 	
 Ratios	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	
Core EBITDA margin (5)	 	 	56.2%	  	 	 	65.0%	  	 	 	58.2%	  	 	 	59.7%	  	 	 	59.1%	  	
 	 	 	 	 	 	
Fixed charge coverage ratio (6)	 	 	4.9 x	  	 	 	5.5 x	  	 	 	4.5 x	  	 	 	4.6 x	  	 	 	4.6 x	  	
 	 	 	 	 	 	
Net debt to core EBITDA (7)	 	 	3.9 x	  	 	 	3.5 x	  	 	 	3.9 x	  	 	 	3.7 x	  	 	 	4.2 x	  	

(1) Percent leased excludes industrial and unconsolidated joint venture properties. Percent leased decreased in the first quarter of 2010 as compared to the prior period primarily due to Kirkland & Ellis vacating 99,000 square feet at Aon Center in Chicago, IL. Percent leased decreased in the third quarter of 2010 as compared to the prior period primarily due to the acquisition of Suwanee Gateway One, a newly-built, vacant building consisting of 142,000 square feet.
(2) Impairment losses include losses for both wholly-owned and unconsolidated joint venture assets.
(3) Core EBITDA and AFFO have been adjusted to exclude impairments on real estate assets as shown on pages 32 and 34.
(4) Net debt is calculated as total debt minus cash and cash equivalents.
(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.
 
8

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

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	    December 31, 2010    	 	 	    September 30, 2010    	 	 	    June 30, 2010    	 	 	    March 31, 2010    	 	 	    December 31, 2009    	 	
 	 	 	 	 	 	
Assets:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
   Real estate, at cost:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Land assets	 	 	647,653 	  	 	 	652,875 	  	 	 	651,876 	  	 	 	651,876 	  	 	 	651,876 	  	
Buildings and improvements	 	 	3,688,751 	  	 	 	3,685,956 	  	 	 	3,668,859 	  	 	 	3,672,594 	  	 	 	3,663,391 	  	
Buildings and improvements, accumulated depreciation	 	 	(744,756)	  	 	 	(739,055)	  	 	 	(714,615)	  	 	 	(689,117)	  	 	 	(665,068)	  	
Intangible lease asset	 	 	219,770 	  	 	 	222,952 	  	 	 	224,532 	  	 	 	235,022 	  	 	 	243,312 	  	
Intangible lease asset, accumulated amortization	 	 	(145,742)	  	 	 	(145,139)	  	 	 	(140,804)	  	 	 	(145,242)	  	 	 	(147,043)	  	
Construction in progress	 	 	11,152 	  	 	 	11,839 	  	 	 	14,909 	  	 	 	12,345 	  	 	 	17,059 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
   Total real estate assets	 	 	3,676,828 	  	 	 	3,689,428 	  	 	 	3,704,757 	  	 	 	3,737,478 	  	 	 	3,763,527 	  	
 	 	 	 	 	 	
   Investment in unconsolidated joint ventures	 	 	42,018 	  	 	 	42,591 	  	 	 	43,005 	  	 	 	43,482 	  	 	 	43,940 	  	
   Cash and cash equivalents	 	 	56,718 	  	 	 	67,539 	  	 	 	81,066 	  	 	 	76,994 	  	 	 	10,004 	  	
   Tenant receivables, net of allowance for doubtful accounts	 	 	28,849 	  	 	 	29,269 	  	 	 	30,986 	  	 	 	33,152 	  	 	 	33,071 	  	
   Straight line rent receivable	 	 	105,157 	  	 	 	100,751 	  	 	 	96,912 	  	 	 	95,164 	  	 	 	95,371 	  	
   Notes receivable	 	 	61,144 	  	 	 	60,671 	  	 	 	60,101 	  	 	 	59,407 	  	 	 	58,739 	  	
   Due from unconsolidated joint ventures	 	 	1,158 	  	 	 	1,085 	  	 	 	1,124 	  	 	 	1,202 	  	 	 	1,083 	  	
   Prepaid expenses and other assets	 	 	23,724 	  	 	 	36,802 	  	 	 	24,866 	  	 	 	18,600 	  	 	 	21,456 	  	
   Goodwill	 	 	180,097 	  	 	 	180,097 	  	 	 	180,097 	  	 	 	180,097 	  	 	 	180,097 	  	
   Deferred financing costs, less accumulated amortization	 	 	5,306 	  	 	 	5,878 	  	 	 	6,467 	  	 	 	6,509 	  	 	 	7,205 	  	
   Deferred lease costs, less accumulated amortization	 	 	192,481 	  	 	 	175,474 	  	 	 	176,120 	  	 	 	176,325 	  	 	 	180,852 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total assets	 	  $	4,373,480 	  	 	  $	4,389,585 	  	 	  $	4,405,501 	  	 	  $	4,428,410 	  	 	  $	4,395,345 	  	

Liabilities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
   Line of credit and notes payable	 	  $	1,402,525 	  	 	  $	1,402,525 	  	 	  $	1,402,525 	  	 	  $	1,402,525 	  	 	  $	1,516,525 	  	
   Accounts payable, accrued expenses, and accrued capital expenditures	 	 	112,648 	  	 	 	102,411 	  	 	 	102,365 	  	 	 	83,172 	  	 	 	97,747 	  	
   Deferred income	 	 	35,203 	  	 	 	33,882 	  	 	 	33,916 	  	 	 	39,079 	  	 	 	34,506 	  	
   Intangible lease liabilities, less accumulated amortization	 	 	48,959 	  	 	 	51,807 	  	 	 	54,730 	  	 	 	57,689 	  	 	 	60,655 	  	
   Interest rate swap	 	 	691 	  	 	 	1,028 	  	 	 	742 	  	 	 	2,316 	  	 	 	3,866 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities	 	 	1,600,026 	  	 	 	1,591,653 	  	 	 	1,594,278 	  	 	 	1,584,781 	  	 	 	1,713,299 	  	
 	 	 	 	 	 	
Redeemable common stock (1)	 	 	-     	  	 	 	-     	  	 	 	-     	  	 	 	-     	  	 	 	75,164 	  	
 	 	 	 	 	 	
Stockholders’ equity (2) :	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
   Class A common stock	 	 	1,330 	  	 	 	932 	  	 	 	536 	  	 	 	534 	  	 	 	397 	  	
   Class B-1 common stock	 	 	-     	  	 	 	-     	  	 	 	397 	  	 	 	397 	  	 	 	397 	  	
   Class B-2 common stock	 	 	-     	  	 	 	397 	  	 	 	397 	  	 	 	397 	  	 	 	397 	  	
   Class B-3 common stock	 	 	397 	  	 	 	397 	  	 	 	397 	  	 	 	397 	  	 	 	398 	  	
   Additional paid in capital	 	 	3,661,308 	  	 	 	3,660,551 	  	 	 	3,659,910 	  	 	 	3,659,257 	  	 	 	3,477,168 	  	
   Cumulative distributions in excess of earnings	 	 	(895,122)	  	 	 	(869,434)	  	 	 	(855,631)	  	 	 	(820,878)	  	 	 	(798,561)	  	
   Redeemable common stock (1)	 	 	-     	  	 	 	-     	  	 	 	-     	  	 	 	-     	  	 	 	(75,164)	  	
   Other comprehensive loss	 	 	(691)	  	 	 	(1,028)	  	 	 	(742)	  	 	 	(2,316)	  	 	 	(3,866)	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Piedmont stockholders’ equity	 	 	2,767,222 	  	 	 	2,791,815 	  	 	 	2,805,264 	  	 	 	2,837,788 	  	 	 	2,601,166 	  	
   Non-controlling interest	 	 	6,232 	  	 	 	6,117 	  	 	 	5,959 	  	 	 	5,841 	  	 	 	5,716 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total stockholders’ equity	 	 	2,773,454 	  	 	 	2,797,932 	  	 	 	2,811,223 	  	 	 	2,843,629 	  	 	 	2,606,882 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities, redeemable common stock and stockholders’ equity	 	  $	4,373,480 	  	 	  $	4,389,585 	  	 	  $	4,405,501 	  	 	  $	4,428,410 	  	 	  $	4,395,345 	  	

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

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	
 	 	 	 	 	
 	 	        12/31/2010        	 	 	    9/30/2010        	 	 	    6/30/2010        	 	 	    3/31/2010        	 	 	    12/31/2009          	 	

Revenues:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental income	 	    $	110,778 	  	 	$	110,776 	  	 	$	110,623 	  	 	$	110,512 	  	 	$	110,405   	  	
Tenant reimbursements	 	 	36,997 	  	 	 	29,690 	  	 	 	33,374 	  	 	 	35,083 	  	 	 	36,108   	  	
Property management fee revenue	 	 	948 	  	 	 	806 	  	 	 	705 	  	 	 	753 	  	 	 	928   	  	
Other rental income	 	 	2,589 	  	 	 	4,230 	  	 	 	479 	  	 	 	496 	  	 	 	1,982   	  	
 	 	 	 	 	
      Total revenues	 	 	151,312 	  	 	 	145,502 	  	 	 	145,181 	  	 	 	146,844 	  	 	 	149,423   	  	
 	 	 	 	 	 	
Operating expenses:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property operating costs	 	 	60,401 	  	 	 	46,612 	  	 	 	55,497 	  	 	 	55,361 	  	 	 	57,281   	  	
Depreciation	 	 	26,685 	  	 	 	26,011 	  	 	 	25,584 	  	 	 	25,691 	  	 	 	26,701   	  	
Amortization	 	 	11,523 	  	 	 	11,018 	  	 	 	11,004 	  	 	 	11,387 	  	 	 	16,172   	  	
Impairment loss on real estate assets	 	 	-     	  	 	 	-     	  	 	 	-     	  	 	 	-     	  	 	 	-       	  	
General and administrative	 	 	7,824 	  	 	 	6,806 	  	 	 	7,952 	  	 	 	6,620 	  	 	 	6,219   	  	
 	 	 	 	 	
      Total operating expenses	 	 	106,433 	  	 	 	90,447 	  	 	 	100,037 	  	 	 	99,059 	  	 	 	106,373   	  	

Real estate operating income	 	 	44,879 	  	 	 	55,055 	  	 	 	45,144 	  	 	 	47,785 	  	 	 	43,050   	  	
 	 	 	 	 	 	
Other income (expense):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest expense	 	 	(17,378)	  	 	 	(17,359)	  	 	 	(18,933)	  	 	 	(19,091)	  	 	 	(19,488)  	  	
Interest and other income	 	 	491 	  	 	 	993 	  	 	 	1,036 	  	 	 	969 	  	 	 	652   	  	
Equity in income of unconsolidated joint ventures	 	 	630 	  	 	 	619 	  	 	 	647 	  	 	 	737 	  	 	 	672   	  	
 	 	 	 	 	
      Total other income (expense)	 	 	  (16,257)	  	 	 	(15,747)	  	 	 	(17,250)	  	 	 	(17,385)	  	 	 	(18,164)  	  	

Income from continuing operations	 	 	28,622 	  	 	 	39,308 	  	 	 	27,894 	  	 	 	30,400 	  	 	 	24,886   	  	
 	 	 	 	 	 	
Operating income, excluding impairment loss	 	 	1,017 	  	 	 	1,434 	  	 	 	1,454 	  	 	 	1,185 	  	 	 	1,179   	  	
Impairment loss	 	 	-     	  	 	 	-     	  	 	 	(9,587)	  	 	 	-     	  	 	 	-       	  	
Loss on sale of real estate assets	 	 	(817)	  	 	 	-     	  	 	 	-     	  	 	 	-     	  	 	 	-       	  	
 	 	 	 	 	
      Discontinued operations (1)	 	 	200 	  	 	 	1,434 	  	 	 	(8,133)	  	 	 	1,185 	  	 	 	1,179   	  	

Net income	 	 	28,822 	  	 	 	40,742 	  	 	 	19,761 	  	 	 	31,585 	  	 	 	26,065   	  	
 	 	 	 	 	 	
Less: Net income attributable to noncontrolling interest	 	 	(122)	  	 	 	(158)	  	 	 	(125)	  	 	 	(125)	  	 	 	(119)  	  	

Net income attributable to Piedmont	 	    $	28,700 	  	 	$	40,584 	  	 	$	19,636 	  	 	$	31,460 	  	 	$	25,946   	  	

Weighted average common shares outstanding - diluted	 	 	172,996 	  	 	 	172,885 	  	 	 	172,718 	  	 	 	165,200 	  	 	 	158,393   	  	
 	 	 	 	 	 	
Net income per share available to common stockholders - diluted	 	    $	0.17 	  	 	$	0.23 	  	 	$	0.11 	  	 	$	0.19 	  	 	$	0.16   	  	

 
 
(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)

 

 	 	Three Months Ended	 	 	Twelve Months Ended	 	
 	 	  12/31/2010  	 	 	  12/31/2009  	 	 	  Change  	 	 	  Change  	 	 	  12/31/2010  	 	 	  12/31/2009  	 	 	  Change  	 	 	  Change  	 	
 	 	 	 	 	 	 	 	 	
Revenues:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental income	 	  $	    110,778  	  	 	  $	    110,405  	  	 	  $	373  	  	 	 	0.3% 	  	 	  $	    442,687  	  	 	  $	    443,436  	  	 	  $	(749) 	  	 	 	-0.2% 	  	
Tenant reimbursements	 	 	36,997  	  	 	 	36,108  	  	 	 	889  	  	 	 	2.5% 	  	 	 	135,145  	  	 	 	149,193  	  	 	 	(14,048) 	  	 	 	-9.4% 	  	
Property management fee revenue	 	 	948  	  	 	 	928  	  	 	 	20  	  	 	 	2.2% 	  	 	 	3,212  	  	 	 	3,111  	  	 	 	101  	  	 	 	3.2% 	  	
Other rental income	 	 	2,589  	  	 	 	1,982  	  	 	 	607  	  	 	 	30.6% 	  	 	 	7,794  	  	 	 	2,764  	  	 	 	5,030  	  	 	 	      182.0% 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	 	 	151,312  	  	 	 	149,423  	  	 	 	1,889  	  	 	 	1.3% 	  	 	 	588,838  	  	 	 	598,504  	  	 	 	(9,666) 	  	 	 	-1.6% 	  	
 	 	 	 	 	 	 	 	 	
Operating expenses:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property operating costs	 	 	60,401  	  	 	 	57,281  	  	 	 	(3,120) 	  	 	 	-5.4% 	  	 	 	217,871  	  	 	 	230,588  	  	 	 	12,717  	  	 	 	5.5% 	  	
Depreciation	 	 	26,685  	  	 	 	26,701  	  	 	 	16  	  	 	 	0.1% 	  	 	 	103,971  	  	 	 	104,516  	  	 	 	545  	  	 	 	0.5% 	  	
Amortization	 	 	11,523  	  	 	 	16,172  	  	 	 	4,649  	  	 	 	28.7% 	  	 	 	44,931  	  	 	 	57,300  	  	 	 	12,369  	  	 	 	21.6% 	  	
Impairment loss on real estate assets	 	 	-      	  	 	 	-      	  	 	 	-      	  	 	 	0.0% 	  	 	 	-      	  	 	 	35,063  	  	 	 	35,063  	  	 	 	100.0% 	  	
General and administrative	 	 	7,824  	  	 	 	6,219  	  	 	 	(1,605) 	  	 	 	-25.8% 	  	 	 	29,201  	  	 	 	27,315  	  	 	 	(1,886) 	  	 	 	-6.9% 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses	 	 	106,433  	  	 	 	106,373  	  	 	 	(60) 	  	 	 	-0.1% 	  	 	 	395,974  	  	 	 	454,782  	  	 	 	58,808  	  	 	 	12.9% 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Real estate operating income	 	 	44,879  	  	 	 	43,050  	  	 	 	1,829  	  	 	 	4.2% 	  	 	 	192,864  	  	 	 	143,722  	  	 	 	    49,142  	  	 	 	34.2% 	  	
 	 	 	 	 	 	 	 	 	
Other income (expense):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest expense	 	 	(17,378) 	  	 	 	(19,488) 	  	 	 	2,110  	  	 	 	10.8% 	  	 	 	(72,761) 	  	 	 	(77,743) 	  	 	 	4,982  	  	 	 	6.4% 	  	
Interest and other income	 	 	491  	  	 	 	652  	  	 	 	(161) 	  	 	 	-24.7% 	  	 	 	3,489  	  	 	 	4,450  	  	 	 	(961) 	  	 	 	-21.6% 	  	
Equity in income of unconsolidated joint ventures	 	 	630  	  	 	 	672  	  	 	 	(42) 	  	 	 	-6.3% 	  	 	 	2,633  	  	 	 	104  	  	 	 	2,529  	  	 	 	2431.7% 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total other income (expense)	 	 	(16,257) 	  	 	 	(18,164) 	  	 	 	1,907  	  	 	 	10.5% 	  	 	 	(66,639) 	  	 	 	(73,189) 	  	 	 	6,550  	  	 	 	8.9% 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from continuing operations	 	 	28,622  	  	 	 	24,886  	  	 	 	3,736  	  	 	 	      15.0% 	  	 	 	126,225  	  	 	 	70,533  	  	 	 	55,692  	  	 	 	79.0% 	  	
 	 	 	 	 	 	 	 	 	
Operating income, excluding impairment loss	 	 	1,017  	  	 	 	1,179  	  	 	 	(162) 	  	 	 	-13.7% 	  	 	 	5,089  	  	 	 	4,645  	  	 	 	444  	  	 	 	9.6% 	  	
Impairment loss	 	 	-      	  	 	 	-      	  	 	 	-      	  	 	 	0.0% 	  	 	 	(9,587) 	  	 	 	-      	  	 	 	(9,587) 	  	 	 	0.0% 	  	
Loss on sale of real estate assets	 	 	(817) 	  	 	 	-      	  	 	 	(817) 	  	 	 	0.0% 	  	 	 	(817) 	  	 	 	-      	  	 	 	(817) 	  	 	 	0.0% 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Discontinued operations (1)	 	 	200  	  	 	 	1,179  	  	 	 	(979) 	  	 	 	-83.0% 	  	 	 	(5,315) 	  	 	 	4,645  	  	 	 	(9,960) 	  	 	 	-214.4% 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	 	 	28,822  	  	 	 	26,065  	  	 	 	2,757  	  	 	 	10.6% 	  	 	 	120,910  	  	 	 	75,178  	  	 	 	45,732  	  	 	 	60.8% 	  	
 	 	 	 	 	 	 	 	 	
Less: Net income attributable to noncontrolling interest	 	 	(122) 	  	 	 	(119) 	  	 	 	(3) 	  	 	 	-2.5% 	  	 	 	(531) 	  	 	 	(478) 	  	 	 	(53) 	  	 	 	-11.1% 	  	

Net income attributable to Piedmont	 	  $	28,700  	  	 	  $	25,946  	  	 	  $	    2,754  	  	 	 	10.6% 	  	 	  $	120,379  	  	 	  $	74,700  	  	 	  $	45,679  	  	 	 	61.1% 	  	

Weighted average common shares outstanding - diluted	 	 	172,996  	  	 	 	158,393  	  	 	 	 	 	 	 	 	 	 	 	170,967  	  	 	 	158,581  	  	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	
Net income per share available to common stockholders - diluted	 	  $	0.17  	  	 	  $	0.16  	  	 	 	 	 	 	 	 	 	 	  $	0.70  	  	 	  $	0.47  	  	 	 	 	 	 	 	 	 	

 
(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	 	  	 	 	    	Twelve Months Ended	 	
 	  	    12/31/2010    	 	  	    12/31/2009    	 	  	 	 	    	    12/31/2010    	 	  	    12/31/2009    	 	
 	 	 	 	 	 	
Net income attributable to Piedmont	  	  $	28,700  	  	  	  $	25,946  	  	  	 	 	 	    	  $	120,379  	  	  	  $	74,700  	  	
 	 	 	 	 	 	
Depreciation (1) (2)	  	 	26,821  	  	  	 	27,264  	  	  	 	 	 	    	 	105,107  	  	  	 	106,878  	  	
Amortization (1)	  	 	11,623  	  	  	 	16,274  	  	  	 	 	 	    	 	45,334  	  	  	 	57,708  	  	
Gain / loss on sale of property (1)	  	 	792  	  	  	 	-      	  	  	 	 	 	    	 	792  	  	  	 	-      	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	    	 	 	 	  	 	 	 	
Funds from operations	  	 	67,936  	  	  	 	69,484  	  	  	 	 	 	    	 	271,612  	  	  	 	239,286  	  	
 	 	 	 	 	 	
Impairment loss on real estate assets(1)	  	 	-  	  	  	 	-  	  	  	 	 	 	    	 	9,640  	  	  	 	37,633  	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	    	 	 	 	  	 	 	 	
Core funds from operations	  	 	67,936  	  	  	 	69,484  	  	  	 	 	 	    	 	281,252  	  	  	 	276,919  	  	
 	 	 	 	 	 	
Depreciation of non real estate assets	  	 	173  	  	  	 	171  	  	  	 	 	 	    	 	707  	  	  	 	632  	  	
Stock-based and other non-cash compensation expense	  	 	1,223  	  	  	 	671  	  	  	 	 	 	    	 	3,681  	  	  	 	3,178  	  	
Deferred financing cost amortization	  	 	608  	  	  	 	696  	  	  	 	 	 	    	 	2,608  	  	  	 	2,786  	  	
Add/(deduct) straight-line effects of lease revenue  (1)	  	 	(3,456) 	  	  	 	(1,618) 	  	  	 	 	 	    	 	(6,088) 	  	  	 	(997) 	  	
Amortization of lease-related intangibles (1)	  	 	(1,331) 	  	  	 	(1,663) 	  	  	 	 	 	    	 	(5,793) 	  	  	 	(5,399) 	  	
Income from amortization of discount on purchase of mezzanine loans	  	 	(473) 	  	  	 	(334) 	  	  	 	 	 	    	 	(2,405) 	  	  	 	(2,278) 	  	
Non-incremental capital expenditures(3)	  	 	(26,594) 	  	  	 	(19,974) 	  	  	 	 	 	    	 	(58,305) 	  	  	 	(46,452) 	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	    	 	 	 	  	 	 	 	
Adjusted funds from operations	  	  $	38,086  	  	  	  $	47,433  	  	  	 	 	 	    	  $	215,657  	  	  	  $	228,389  	  	

Weighted average common shares outstanding - diluted	  	 	172,996  	  	  	 	158,393  	  	  	 	 	 	    	 	170,967  	  	  	 	158,581  	  	
 	 	 	 	 	 	
Funds from operations per share (diluted)	  	  $	0.39  	  	  	  $	0.44  	  	  	 	 	 	    	  $	1.59  	  	  	  $	1.51  	  	
Core funds from operations per share (diluted)	  	  $	0.39  	  	  	  $	0.44  	  	  	 	 	 	    	  $	1.65  	  	  	  $	1.75  	  	
Adjusted funds from operations per share (diluted)	  	  $	0.22  	  	  	  $	0.30  	  	  	 	 	 	    	  $	1.26  	  	  	  $	1.44  	  	

(1) Includes adjustments for wholly-owned properties and for our proportionate ownership in unconsolidated joint ventures.
(2) Excludes depreciation of non real estate assets.
(3) Non-incremental capital expenditures are defined on page 30.
 
12

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	  	Twelve Months Ended	 	
 	  	    12/31/2010    	 	  	    12/31/2009    	 	  	    12/31/2010    	 	  	    12/31/2009    	 	
 	 	 	 	 	
Net income attributable to Piedmont	  	  $	28,700  	  	  	  $	25,946  	  	  	  $	120,379  	  	  	  $	74,700  	  	
 	 	 	 	 	
Net income attributable to noncontrolling interest	  	 	122  	  	  	 	119  	  	  	 	531  	  	  	 	478  	  	
Interest expense	  	 	17,378  	  	  	 	19,488  	  	  	 	72,761  	  	  	 	77,743  	  	
Depreciation (1)	  	 	26,995  	  	  	 	27,434  	  	  	 	105,814  	  	  	 	107,510  	  	
Amortization (1)	  	 	11,623  	  	  	 	16,274  	  	  	 	45,334  	  	  	 	57,708  	  	
Impairment loss on real estate assets (1)	  	 	-      	  	  	 	-      	  	  	 	9,640  	  	  	 	37,633  	  	
Gain / loss on sale of property (1)	  	 	792  	  	  	 	-      	  	  	 	792  	  	  	 	-      	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Core EBITDA	  	 	85,610  	  	  	 	89,261  	  	  	 	355,251  	  	  	 	355,772  	  	
 	 	 	 	 	
General & administrative expenses (1)	  	 	7,934  	  	  	 	6,297  	  	  	 	29,624  	  	  	 	27,558  	  	
Management fee revenue	  	 	(948) 	  	  	 	(928) 	  	  	 	(3,212) 	  	  	 	(3,111) 	  	
Interest and other income	  	 	(491) 	  	  	 	(652) 	  	  	 	(3,489) 	  	  	 	(4,450) 	  	
Lease termination income	  	 	(2,589) 	  	  	 	(1,982) 	  	  	 	(7,794) 	  	  	 	(2,764) 	  	
Lease termination expense - straight line rent & acquisition intangibles write-offs	  	 	461  	  	  	 	552  	  	  	 	1,338  	  	  	 	1,353  	  	
Straight line rent adjustment (1)	  	 	(3,791) 	  	  	 	(2,619) 	  	  	 	(7,300) 	  	  	 	(2,809) 	  	
Net effect of amortization of above/(below) market in-place lease intangibles  (1)	  	 	(1,457) 	  	  	 	(1,212) 	  	  	 	(5,919) 	  	  	 	(4,939) 	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Core net operating income	  	 	84,729  	  	  	 	88,717  	  	  	 	358,499  	  	  	 	366,610  	  	
 	 	 	 	 	
Acquisitions (2)	  	 	881  	  	  	 	-  	  	  	 	883  	  	  	 	-  	  	
Dispositions (3)	  	 	(1,119) 	  	  	 	(1,672) 	  	  	 	(6,169) 	  	  	 	(6,667) 	  	
Industrial properties	  	 	(347) 	  	  	 	(638) 	  	  	 	(803) 	  	  	 	(2,559) 	  	
Unconsolidated joint ventures	  	 	(1,165) 	  	  	 	(1,156) 	  	  	 	(4,835) 	  	  	 	(4,793) 	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Same Store NOI	  	  $	82,979  	  	  	  $	85,251  	  	  	  $	347,575  	  	  	  $	352,591  	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Change period over period	  	 	-2.7%   	  	  	 	N/A   	  	  	 	-1.4%  	  	  	 	N/A    	  	

 	 	 
Same Store Net Operating Income
Top Seven Markets

  	 	 	  	Three Months Ended	 	  	 	 	  	Twelve Months Ended	 	  	 	 	 	
 	 	 	  	12/31/2010	 	  	12/31/2009	 	  	 	 	  	12/31/2010	 	  	12/31/2009	 	  	 	 	 	 	
 	 	 	  	$	 	  	%  	 	  	$	 	  	%  	 	  	 	 	  	$	 	  	%  	 	  	$	 	  	%  	 	  	 	 	 	 	 	
 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	
 	 	Chicago (4)	  	  $	17,767	  	  	 	21.4  	  	  	  $	19,546	  	  	 	22.9 	  	  	 	 	 	  	  $	76,210	  	  	 	21.9 	  	  	  $	79,912	  	  	 	22.7 	  	  	 	 	 	 	 	 	 	
 	 	Washington, D.C.	  	 	18,936	  	  	 	22.8  	  	  	 	18,809	  	  	 	22.1 	  	  	 	 	 	  	 	74,877	  	  	 	21.6 	  	  	 	74,040	  	  	 	21.0 	  	  	 	 	 	 	 	 	 	 	
 	 	New York (5)	  	 	13,725	  	  	 	16.5  	  	  	 	11,987	  	  	 	14.1 	  	  	 	 	 	  	 	52,291	  	  	 	15.1 	  	  	 	53,582	  	  	 	15.2 	  	  	 	 	 	 	 	 	 	 	 	
 	 	Minneapolis	  	 	5,148	  	  	 	6.2  	  	  	 	5,523	  	  	 	6.5 	  	  	 	 	 	  	 	21,207	  	  	 	6.1 	  	  	 	21,111	  	  	 	6.0 	  	  	 	 	 	 	 	 	 	 	 	 	
 	 	Los Angeles (6)	  	 	2,037	  	  	 	2.5  	  	  	 	4,906	  	  	 	5.7 	  	  	 	 	 	  	 	15,749	  	  	 	4.5 	  	  	 	21,765	  	  	 	6.2 	  	  	 	 	 	 	 	 	 	 	 	 	 	
 	 	Dallas	  	 	4,351	  	  	 	5.3  	  	  	 	4,322	  	  	 	5.1 	  	  	 	 	 	  	 	16,321	  	  	 	4.7 	  	  	 	16,370	  	  	 	4.6 	  	  	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Boston (7)	  	 	4,169	  	  	 	5.0  	  	  	 	3,610	  	  	 	4.2 	  	  	 	 	 	  	 	15,741	  	  	 	4.5 	  	  	 	15,036	  	  	 	4.2 	  	  	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Other (8)	  	 	16,846	  	  	 	20.3  	  	  	 	16,548	  	  	 	19.4 	  	  	 	 	 	  	 	75,179	  	  	 	21.6 	  	  	 	70,775	  	  	 	20.1 	  	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Total	  	  $	    82,979	  	  	 	100.0  	  	  	  $	    85,251	  	  	 	100.0 	  	  	 	 	 	  	  $	    347,575	  	  	 	100.0 	  	  	  $	    352,591	  	  	 	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, and Meridian Crossings in Richfield, MN, purchased on October 1, 2010.
(3) Dispositions consists of 111 Sylvan Avenue in Englewood Cliffs, NJ, sold on December 8, 2010.
(4) The decrease in Chicago Same Store Net Operating Income for the three months ended December 31, 2010 as compared to the same period in 2009 is primarily due to accrual adjustments for property taxes due to a millage rate increase as well as reduced rental income due to the previously announced 99,000 square foot partial lease expiration by Kirkland & Ellis as of January 1, 2010 at Aon Center in Chicago, IL. The decrease in Chicago Same Store Net Operating Income for the twelve months ended December 31, 2010 as compared to the same period in 2009 is primarily related to a rental abatement concession associated with a lease renewal at Windy Point I in Schaumburg, IL, as well as a lease renewal for a lesser amount of space and a rental abatement concession associated with a lease renewal at Two Pierce Place in Itasca, IL.
(5) The increase in New York Same Store Net Operating Income for the three months ended December 31, 2010 as compared to the same period in 2009 is primarily related to a retroactive rental rate adjustment recognized in the fourth quarter of 2009 related to the lease restructure with the State of New York at 60 Broad Street in New York, NY. The decrease in New York Same Store Net Operating Income for the twelve months ended December 31, 2010 as compared to the same period in 2009 is primarily related to rental abatements in 2010 associated with the lease restructure/extension with the State of New York and utility credits to tenants for prior year charges at 60 Broad Street in New York, NY, as well as a one-time payment for utilities in 2009 by a tenant at 5000 Corporate Court in Holtsville, NY.
(6) The decrease in Los Angeles Same Store Net Operating Income for the three months ended and the twelve months ended December 31, 2010 as compared to the same periods in 2009 is primarily due to a rental abatement in 2010 associated with a lease renewal at 800 North Brand Boulevard in Glendale, CA, as well as two lease renewals for less space than previously occupied by the renewing tenants at 800 North Brand Boulevard in Glendale, CA and Fairway Center II in Brea, CA.
(7) The increase in Boston Same Store Net Operating Income for the three months ended and the twelve months ended December 31, 2010 compared to the same periods in 2009 is primarily related to the commencement of a 26,000 square foot lease during the fourth quarter of 2009 and the space expansion for Advanced Micro Devices effective during the fourth quarter of 2010, both at 90 Central Street in Boxborough, MA.
(8) The increase in Other Same Store Net Operating Income for the three months ended and the twelve months ended December 31, 2010 compared to the same periods in 2009 is due to a number of factors, the largest of which is the phased lease commencement for First Data Corporation for 184,000 square feet at Glenridge Highlands Two in Atlanta, GA during 2009.
 
13

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	  	Twelve Months Ended	 	
 	  	    12/31/2010    	 	  	    12/31/2009    	 	  	    12/31/2010    	 	  	    12/31/2009    	 	
 	 	 	 	 	
Net income attributable to Piedmont	  	  $	28,700  	  	  	  $	25,946  	  	  	  $	120,379  	  	  	  $	74,700  	  	
 	 	 	 	 	
Net income attributable to noncontrolling interest	  	 	122  	  	  	 	119  	  	  	 	531  	  	  	 	478  	  	
Interest expense	  	 	17,378  	  	  	 	19,488  	  	  	 	72,761  	  	  	 	77,743  	  	
Depreciation (1)	  	 	26,995  	  	  	 	27,434  	  	  	 	105,814  	  	  	 	107,510  	  	
Amortization (1)	  	 	11,623  	  	  	 	16,274  	  	  	 	45,334  	  	  	 	57,708  	  	
Impairment loss on real estate assets (1)	  	 	-      	  	  	 	-      	  	  	 	9,640  	  	  	 	37,633  	  	
Gain / loss on sale of property (1)	  	 	792  	  	  	 	-      	  	  	 	792  	  	  	 	-      	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Core EBITDA	  	 	85,610  	  	  	 	89,261  	  	  	 	355,251  	  	  	 	355,772  	  	
 	 	 	 	 	
General & administrative expenses (1)	  	 	7,934  	  	  	 	6,297  	  	  	 	29,624  	  	  	 	27,558  	  	
Management fee revenue	  	 	(948) 	  	  	 	(928) 	  	  	 	(3,212) 	  	  	 	(3,111) 	  	
Interest and other income	  	 	(491) 	  	  	 	(652) 	  	  	 	(3,489) 	  	  	 	(4,450) 	  	
Lease termination income	  	 	(2,589) 	  	  	 	(1,982) 	  	  	 	(7,794) 	  	  	 	(2,764) 	  	
Lease termination expense - straight line rent & acquisition intangibles write-offs	  	 	461  	  	  	 	552  	  	  	 	1,338  	  	  	 	1,353  	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Core net operating income	  	 	89,977  	  	  	 	92,548  	  	  	 	371,718  	  	  	 	374,358  	  	
 	 	 	 	 	
Acquisitions (2)	  	 	(308) 	  	  	 	-  	  	  	 	(306) 	  	  	 	-  	  	
Dispositions (3)	  	 	(1,054) 	  	  	 	(1,575) 	  	  	 	(5,814) 	  	  	 	(6,279) 	  	
Industrial properties	  	 	(366) 	  	  	 	(637) 	  	  	 	(863) 	  	  	 	(2,554) 	  	
Unconsolidated joint ventures	  	 	(1,089) 	  	  	 	(1,188) 	  	  	 	(4,605) 	  	  	 	(4,684) 	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Same Store NOI	  	  $	87,160  	  	  	  $	89,148  	  	  	  $	360,130  	  	  	  $	360,841  	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Change period over period	  	 	-2.2%   	  	  	 	N/A   	  	  	 	-0.2%  	  	  	 	N/A    	  	

 	 	 
Same Store Net Operating Income
Top Seven Markets

  	 	 	  	Three Months Ended	 	  	 	 	  	Twelve Months Ended	 	  	 	 	 	
 	 	 	  	12/31/2010	 	  	12/31/2009	 	  	 	 	  	12/31/2010	 	  	12/31/2009	 	  	 	 	 	 	
 	 	 	  	$	 	  	%  	 	  	$	 	  	%  	 	  	 	 	  	$	 	  	%  	 	  	$	 	  	%  	 	  	 	 	 	 	 	
 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	
 	 	Chicago (4)	  	  $	18,545	  	  	 	21.3  	  	  	  $	20,573	  	  	 	23.1  	  	  	 	 	 	  	  $	82,370	  	  	 	22.9  	  	  	  $	84,825	  	  	 	23.5  	  	  	 	 	 	 	 	 	 	
 	 	Washington, D.C.	  	 	18,986	  	  	 	21.8  	  	  	 	18,869	  	  	 	21.2  	  	  	 	 	 	  	 	75,286	  	  	 	20.9  	  	  	 	75,726	  	  	 	21.0  	  	  	 	 	 	 	 	 	 	 	
 	 	New York	  	 	14,193	  	  	 	16.3  	  	  	 	13,747	  	  	 	15.4  	  	  	 	 	 	  	 	55,172	  	  	 	15.3  	  	  	 	55,095	  	  	 	15.3  	  	  	 	 	 	 	 	 	 	 	 	
 	 	Minneapolis	  	 	4,972	  	  	 	5.7  	  	  	 	5,422	  	  	 	6.1  	  	  	 	 	 	  	 	20,509	  	  	 	5.7  	  	  	 	20,749	  	  	 	5.7  	  	  	 	 	 	 	 	 	 	 	 	 	
 	 	Los Angeles (5)	  	 	3,939	  	  	 	4.5  	  	  	 	4,807	  	  	 	5.4  	  	  	 	 	 	  	 	18,861	  	  	 	5.2  	  	  	 	21,677	  	  	 	6.0  	  	  	 	 	 	 	 	 	 	 	 	 	 	
 	 	Dallas	  	 	4,230	  	  	 	4.8  	  	  	 	4,154	  	  	 	4.6  	  	  	 	 	 	  	 	15,675	  	  	 	4.4  	  	  	 	16,107	  	  	 	4.5  	  	  	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Boston (6)	  	 	3,823	  	  	 	4.4  	  	  	 	3,465	  	  	 	3.9  	  	  	 	 	 	  	 	14,535	  	  	 	4.0  	  	  	 	13,887	  	  	 	3.8  	  	  	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Other (7)	  	 	18,472	  	  	 	21.2  	  	  	 	18,111	  	  	 	20.3  	  	  	 	 	 	  	 	77,722	  	  	 	21.6  	  	  	 	72,775	  	  	 	20.2  	  	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Total	  	  $	    87,160	  	  	 	100.0  	  	  	  $	    89,148	  	  	 	100.0  	  	  	 	 	 	  	  $	    360,130	  	  	 	100.0  	  	  	  $	    360,841	  	  	 	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, and Meridian Crossings in Richfield, MN, purchased on October 1, 2010.
(3) Dispositions consists of 111 Sylvan Avenue in Englewood Cliffs, NJ, sold on December 8, 2010.
(4) The decrease in Chicago Same Store Net Operating Income for the three months ended December 31, 2010 as compared to the same period in 2009 is primarily due to accrual adjustments for property taxes due to a millage rate increase as well as reduced rental income due to the previously announced 99,000 square foot partial lease expiration by Kirkland & Ellis as of January 1, 2010 at Aon Center in Chicago, IL. The decrease in Chicago Same Store Net Operating Income for the twelve months ended December 31, 2010 as compared to the same period in 2009 is primarily related to the previously announced 99,000 square foot partial lease expiration with Kirkland & Ellis at Aon Center in Chicago, IL, as well as reduced operating expense recoveries associated with a renewal lease conversion from a net to a gross operating expense recovery structure at Windy Point I in Schaumburg, IL.
(5) The decrease in Los Angeles Same Store Net Operating Income for the three months ended and the twelve months ended December 31, 2010 as compared to the same periods in 2009 is primarily due to a lease renewal for less space than previously occupied by a tenant at 800 North Brand Boulevard in Glendale, CA. Additional contributors to the decrease in Los Angeles Same Store Net Operating Income for the twelve months ended December 31, 2010 as compared to the same period in 2009 are holdover rent that was recognized in 2009 for a lease that terminated in 2008 and decreased rental revenue in 2010 attributable to a lease default during 2009 by a bank that leased 25,000 square feet, both at 1901 Main Street in Irvine, CA.
(6) The increase in Boston Same Store Net Operating Income for the three months ended and the twelve months ended December 31, 2010 compared to the same periods in 2009 is primarily related to the lease renewal and space expansion for Advanced Micro Devices at 90 Central Street in Boxborough, MA.
(7) The increase in Other Same Store Net Operating Income for the three months ended and the twelve months ended December 31, 2010 compared to the same periods in 2009 is due to a number of factors, the largest of which is the phased lease commencement for First Data Corporation for 184,000 square feet at Glenridge Highlands Two in Atlanta, GA during 2009.
 
14

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

 
 	 	 	 	 	 	 	 	 	 	 	
 	  	As of
    December 31, 2010    	 	  	As of
    December 31, 2009    	 	  	 	
 
Common stock price(1)	  	 
 	 
$20.14	 
  	  	 	$ N/A	  	  	 	
 
Total shares outstanding (2)	  	 	172,658	  	  	 	158,917	  	  	 	
 
Class A common stock	  	 	132,956	  	  	 	39,729	  	  	 	
Class B-1 common stock	  	 	-    	  	  	 	39,729	  	  	 	
Class B-2 common stock	  	 	-    	  	  	 	39,729	  	  	 	
Class B-3 common stock	  	 	39,702	  	  	 	39,729	  	  	 	
 
Equity market capitalization(3)	  	 	$3,477,342	  	  	 	$ N/A	  	  	 	
 
Total consolidated debt	  	 	$1,402,525	  	  	 	$1,516,525	  	  	 	
 
Total market capitalization(1)	  	 	$4,879,867	  	  	 	$ N/A	  	  	 	
 
Total debt / Total market capitalization	  	 	28.7%	  	  	 	N/A	  	  	 	
 
Total gross real estate assets	  	 	$4,567,326	  	  	 	$4,575,638	  	  	 	
 
Total debt / Total gross real estate assets (4)	  	 	30.7%	  	  	 	33.1%	  	  	 	
 
Total debt / Total gross assets (5)	  	 	26.6%	  	  	 	29.1%	  	  	 	

(1) Reflects Class A common stock closing price as of the end of the reporting period. The company was not listed on a public exchange as of December 31, 2009. Our Class A common stock initially listed on the New York Stock Exchange on February 10, 2010.
(2) On January 22, 2010, we filed an amendment to our charter to effect a recapitalization of our common stock as described further in our SEC filings. Upon the effectiveness of the recapitalization, each share of our outstanding common stock converted automatically into: (a) 1/12th of a share of our Class A common stock; plus (b) 1/12th of a share of our Class B-1 common stock; plus (c) 1/12th of a share of our Class B-2 common stock; plus (d) 1/12th of a share of our Class B-3 common stock. The recapitalization had the effect of a one-for-three reverse stock split. Prior period share and per share information in this report have been restated to reflect this recapitalization. Class B-1 common stock converted automatically into Class A common stock on August 9, 2010 and Class B-2 common stock converted automatically into Class A common stock on November 7, 2010.
(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)	  	Amount	 	 	 	  	Weighted Average
Interest Rate	 	 	 	  	Weighted Average
Maturity	 	  	 

Floating Rate	  	 	$0 (2)	  	 	 	  	 
	0.00%  (3)
	  
	 	 	  	 	20.0 months	  	  	 	
Fixed Rate (4)	  	 	1,402,525	  	 	 	  	 	4.66%	  	 	 	  	 	41.2 months	  	  	 	
 	 	  	 	
Total	  	 	$1,402,525	  	 	 	  	 	4.66%	  	 	 	  	 	41.2 months	  	  	 	

 	  	 	 	 	 	 	  	 	 	 	 	 	  	 	 	 	  	 	

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

Unsecured	  	 	$250,000	  	 	 	  	 	2.36%  (4)	  	 	 	  	 	5.9 months	  	  	 	
Secured	  	 	1,152,525	  	 	 	  	 	5.16%	  	 	 	  	 	48.9 months	  	  	 	
 	 	  	 	
Total	  	 	$1,402,525	  	 	 	  	 	4.66%	  	 	 	  	 	41.2 months	  	  	 	

 	  	 	 	 	 	 	  	 	 	 	 	 	  	 	 	 	  	 	

Debt Maturities	
Maturity Year	  	Secured Debt (1)	  	 	 	  	Unsecured Debt (1)	  	 	 	  	 
Weighted Average
Interest Rate	  	Percentage of    
Total	  	 	

2011	  	$0	  	 	 	 	  	$250,000	  	 	 	 	  	2.36%	  	17.8%	  	 	
2012	  	45,000	  	 	 	 	  	0(2)	  	 	 	 	  	5.20%	  	3.2%	  	 	
2013	  	0	  	 	 	 	  	0	  	 	 	 	  	N/A	  	N/A	  	 	
2014	  	695,000	  	 	 	 	  	0	  	 	 	 	  	4.92%	  	49.6%	  	 	
2015	  	105,000	  	 	 	 	  	0	  	 	 	 	  	5.29%	  	7.5%	  	 	
2016	  	167,525	  	 	 	 	  	0	  	 	 	 	  	5.55%	  	11.9%	  	 	
2017	  	140,000	  	 	 	 	  	0	  	 	 	 	  	5.76%	  	10.0%	  	 	
 	  	 	
TOTAL	  	$1,152,525	  	 	 	 	  	$250,000	  	 	 	 	  	4.66%	  	100.0%	  	 	
 	  	 	
(1) All of Piedmont's outstanding debt as of December 31, 2010 is interest-only debt.
(2) Amount represents the outstanding balance as of December 31, 2010 on a $500 million unsecured line of credit, which matures in August 2011. Management intends to exercise the one-year extension option to extend the maturity date to August 2012. The payment of a 15 bp fee will be required to extend the term of this facility.
(3) The interest rate on the currently unused $500 million unsecured line of credit is equal to the weighted average interest rate on all outstanding draws as of December 31, 2010. Piedmont may select from multiple interest rate options with each draw, including the prime rate and various length LIBOR locks. All LIBOR selections are subject to an additional spread of 0.475% over the selected rate based on Piedmont's current credit rating.
(4) The $250 million unsecured term loan has a stated variable rate; however, Piedmont entered into interest rate swap agreements which effectively fix the interest rate on this loan at 2.36% through June 28, 2011.
 
16

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Facility	 	Property	 	Rate(1)	 	 	Maturity	 	 	Principal Balance
Outstanding as of
December 31, 2010	 	

Secured (Fixed)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
$45.0 Million Fixed-Rate Loan	 	4250 North Fairfax	 	 	5.20%	  	 	 	6/1/2012	  	 	 	$45,000	  	
35 West Wacker Building Mortgage Note	 	35 West Wacker Drive	 	 	5.10%	  	 	 	1/1/2014	  	 	 	120,000	  	
Aon Center Chicago Mortgage Note	 	Aon Center	 	 	4.87%	  	 	 	5/1/2014	  	 	 	200,000	  	
Aon Center Chicago Mortgage Note	 	Aon Center	 	 	5.70%	  	 	 	5/1/2014	  	 	 	25,000	  	
Secured Pooled Facility	 	Nine Property Collateralized Pool (2)	 	 	4.84%	  	 	 	6/7/2014	  	 	 	350,000	  	
$105.0 Million Fixed-Rate Loan	 	US Bancorp Center	 	 	5.29%	  	 	 	5/11/2015	  	 	 	105,000	  	
$125.0 Million Fixed-Rate Loan	 	Four Property Collateralized Pool (3)	 	 	5.50%	  	 	 	4/1/2016	  	 	 	125,000	  	
$42.5 Million Fixed-Rate Loan	 	Las Colinas Corporate Center I & II	 	 	5.70%	  	 	 	10/11/2016	  	 	 	42,525	  	
WDC Mortgage Notes	 	1201 & 1225 Eye Street	 	 	5.76%	  	 	 	11/1/2017	  	 	 	140,000	  	

Subtotal/Weighted Average (4)	 	 	 	 	5.16%	  	 	 	 	 	 	 	$1,152,525	  	
 	 	 	 	 	
Unsecured (Variable)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
$250 Million Unsecured Term Loan (5)	 	N/A	 	 	LIBOR + 1.50%(5)	   	 	 	6/28/2011	  	 	 	$250,000	  	
$500 Million Unsecured Facility(6)	 	N/A	 	 	0%(7)	   	 	 	8/30/2011	(8)	 	 	0	  	

Subtotal/Weighted Average (4)	 	 	 	 	2.36%	  	 	 	 	 	 	 	$250,000	  	

Total/ Weighted Average (4)	 	 	 	 	4.66%	  	 	 	 	 	 	 	$1,402,525	  	
 	 	
(1) All of Piedmont’s outstanding debt as of December 31, 2010 is interest-only debt.
(2) The nine property collateralized pool includes 1200 Crown Colony Drive, Braker Pointe III, 2 Gatehall Drive, One and Two Independence Square, 2120 West End Avenue, 200 and 400 Bridgewater Crossing, and Fairway Center II. 400 Bridgewater Crossing was added as a substitute property in December 2010 in order to allow for the release upon sale of 111 Sylvan Avenue.
(3) The four property collateralized pool includes 1430 Enclave Parkway, Windy Point I and II, and 1055 East Colorado Boulevard.
(4) Weighted average is based on the total balance outstanding and interest rate at December 31, 2010.
(5) The $250 million unsecured term loan has a stated variable rate; however, Piedmont entered into interest rate swap agreements which effectively fix the interest rate on this loan at 2.36% through June 28, 2011.
(6) All of Piedmont’s outstanding debt as of December 31, 2010 is term debt with the exception of the $500 million unsecured line of credit, which had no outstanding draws at year end.
(7) The interest rate on the currently unused $500 million unsecured line of credit is equal to the weighted-average interest rate on all outstanding draws as of December 31, 2010. Piedmont may select from multiple interest rate options with each draw, including the prime rate and various length LIBOR locks. All LIBOR selections are subject to an additional spread (0.475% as of December 31, 2010) over the selected rate based on Piedmont’s current credit rating.
(8) Piedmont may extend the term for one additional year provided Piedmont is not then in default and upon the payment of a 15 basis point extension fee.
 
17

Piedmont Office Realty Trust, Inc.
Debt Analysis
As of December 31, 2010
Unaudited

 
 	 	 	 	 	 	 	 	 	 	 	
Debt Covenant Compliance (1)	  	        Required         	 	  	        Actual         	 	  	  	
 
Maximum Leverage Ratio	  	 	0.60	  	  	 	0.30	  	  	 	
 
Minimum Fixed Charge Coverage Ratio (2)	  	 	1.50	  	  	 	4.84	  	  	 	
 
Maximum Secured Indebtedness Ratio	  	 	0.40	  	  	 	0.24	  	  	 	
 
Minimum Unencumbered Leverage Ratio	  	 	1.60	  	  	 	7.91	  	  	 	
 
Minimum Unencumbered Interest Coverage Ratio(3)	  	 	1.75	  	  	 	14.19	  	  	 	
 
Maximum Certain Permitted Investments Ratio(4)	  	 	0.35	  	  	 	0.02	  	  	 	

 
(1) Debt covenant compliance calculations relate to specific calculations detailed in our term loan and line of credit agreements.
 
(2) Defined as EBITDA for the trailing four quarters (including the company’s share of EBITDA from unconsolidated interests), less one-time or non-recurring gains or losses, less a $0.15 per square foot capital reserve, and excluding the impact of straight line rent leveling adjustments and amortization of intangibles divided by the company’s share of fixed charges, as more particularly described in the credit agreements.
 
(3) Defined as net operating income for the trailing four quarters for unencumbered assets (including the company’s share of net operating income from unconsolidated interests that are unencumbered) less a $0.15 per square foot capital reserve divided by the company’s share of interest expense associated with unsecured financings only, as more particularly described in the credit agreements.
 
(4) Permitted investments are defined as unconsolidated interests, debt investments, unimproved land, and development projects. Investments in permitted investments shall not exceed 35% of total asset value.

 	 	 	 	 	 	 	 	 	 	 	 	 	
Other Debt Coverage Ratios	  	Three months ended
December 31, 2010	 	  	Year ended
December 31, 2010	 	  	Year ended
December 31, 2009	 	
 
Net debt / Core EBITDA	  	 	3.9 x	  	  	 	3.8 x	  	  	 	4.2 x	  	
 
Fixed charge coverage ratio(5)	  	 	4.9 x	  	  	 	4.9 x	  	  	 	4.6 x	  	
 
Interest coverage ratio(6)	  	 	4.9 x	  	  	 	4.9 x	  	  	 	4.6 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 December 31, 2010 and December 31, 2009.
 
(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 December 31, 2010 and December 31, 2009.	    

18

Piedmont Office Realty Trust, Inc.
Tenant Diversification
As of December 31, 2010
(in thousands)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
  	 	Credit Rating (1)	 	Number of
Properties	 	 	Lease
Expiration(s)   (2)	 	 	Annualized Lease
Revenue  (3)	 	Percentage of
Annualized Lease
Revenue (%)	 	Leased Square
Footage	 	Percentage of
Leased Square
Footage (%)	
U.S. Government	 	AAA / Aaa	 	 	10	  	 	 	(4)	  	 	$76,977	 	13.2	 	1,726	 	9.5	
BP (5)	 	A / A2	 	 	1	  	 	 	2013	  	 	32,477	 	5.6	 	776	 	4.3	
US Bancorp	 	A+ / Aa3	 	 	3	  	 	 	2014(6)	  	 	29,704	 	5.1	 	1,052	 	5.8	
Leo Burnett	 	BBB+ / Baa2	 	 	2	  	 	 	2019	  	 	26,739	 	4.6	 	695	 	3.8	
State of New York	 	AA / Aa2	 	 	1	  	 	 	2019	  	 	18,550	 	3.2	 	481	 	2.6	
Winston & Strawn	 	No rating available (7)	 	 	1	  	 	 	2024	  	 	17,987	 	3.1	 	417	 	2.3	
Sanofi-aventis	 	AA- / A1	 	 	2	  	 	 	2012	  	 	17,338	 	3.0	 	454	 	2.5	
Independence Blue Cross	 	No rating available	 	 	1	  	 	 	2023	  	 	14,897	 	2.5	 	761	 	4.2	
Nestle	 	AA / Aa1	 	 	1	  	 	 	2015	  	 	13,426	 	2.3	 	392	 	2.2	
Kirkland & Ellis	 	No rating available (7)	 	 	1	  	 	 	2011	  	 	11,655	 	2.0	 	366	 	2.0	
Zurich American	 	AA-	 	 	1	  	 	 	2011	  	 	10,878	 	1.9	 	300	 	1.6	
Shaw	 	BBB- / Ba1	 	 	1	  	 	 	2018	  	 	9,546	 	1.6	 	313	 	1.7	
State Street Bank	 	AA- / Aa2	 	 	1	  	 	 	2021	  	 	9,413	 	1.6	 	235	 	1.3	
City of New York	 	AA / Aa2	 	 	1	  	 	 	2020	  	 	9,147	 	1.6	 	313	 	1.7	
Lockheed Martin	 	A- / Baa1	 	 	3	  	 	 	2014	  	 	8,939	 	1.5	 	284	 	1.6	
DDB Needham	 	BBB+ / Baa1	 	 	1	  	 	 	2018	  	 	8,855	 	1.5	 	244	 	1.3	
Gemini	 	A+ / Aa3	 	 	1	  	 	 	2013	  	 	7,532	 	1.3	 	205	 	1.1	
Gallagher	 	No rating available	 	 	1	  	 	 	2018	  	 	6,995	 	1.2	 	307	 	1.7	
Caterpillar Financial	 	A / A2	 	 	1	  	 	 	2022	  	 	6,975	 	1.2	 	312	 	1.7	
Harvard University	 	Aaa	 	 	2	  	 	 	2017	  	 	6,431	 	1.1	 	105	 	0.6	
Other	 	 	 	 	 	 	 	 	Various	  	 	240,122	 	40.9	 	8,476	 	46.5	
Total	 	 	 	 	 	 	 	 	 	 	 	$584,583	 	100.0	 	18,214	 	100.0	

(1) Credit rating may reflect credit rating of parent or guarantor. When available, both the S&P 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 29 for the definition of Annualized Lease Revenue.
(4) There are several leases with several different agencies of the U.S. Government with expiration years ranging from 2011 to 2025.
(5) Majority of space is subleased to Aon Corporation.
(6) U.S. Bank’s lease at One & Two Meridian Crossings expires in 2023.
(7) While no ratings are available for Winston & Strawn and Kirkland & Ellis, these tenants are ranked #33 and #5, respectively, in the 2010 AmLaw 100 ranking (based on 2009 financial data), a publication of The American Lawyer Magazine, which annually ranks the top-grossing, most profitable law firms.
 
19

Piedmont Office Realty Trust, Inc.
Tenant Credit Rating & Lease Distribution Information
As of December 31, 2010

 
 	 	 	 	 	 	 	 	 	 	 	
    Tenant Credit Rating (1)	  	Annualized Lease
Revenue ($’s in
thousands)	 	  	Percentage of
Annualized Lease
Revenue (%)	  	  	 	
    AAA / Aaa	  	 	$87,606	  	  	15.0	  	 	 	 	
    AA / Aa	  	 	137,331	  	  	23.5	  	 	 	 	
    A / A	  	 	103,628	  	  	17.7	  	 	 	 	
    BBB / Baa	  	 	79,737	  	  	13.7	  	 	 	 	
    BB / Ba	  	 	18,793	  	  	3.2	  	 	 	 	
    B / B	  	 	14,432	  	  	2.5	  	 	 	 	
    Below	  	 	1,400	  	  	0.2	  	 	 	 	
    Not rated (2)	  	 	141,656	  	  	24.2	  	 	 	 	
 	  	 	 	 	  	 	  	 	 	 	
    Total	  	 	$584,583	  	  	100.0	  	 	 	 	

Lease Distribution
As of December 31, 2010

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	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	  	159	  	33.9	  	 	$12,780	  	  	2.2	  	132	  	0.7	
2,501 - 10,000	  	119	  	25.4	  	 	22,301	  	  	3.8	  	623	  	3.4	
10,001 - 20,000	  	54	  	11.5	  	 	24,286	  	  	4.2	  	784	  	4.3	
20,001 - 40,000	  	51	  	10.9	  	 	45,702	  	  	7.8	  	1,469	  	8.1	
40,001 - 100,000	  	32	  	6.8	  	 	58,640	  	  	10.0	  	1,988	  	10.9	
Greater than 100,000	  	54	  	11.5	  	 	420,874	  	  	72.0	  	13,218	  	72.6	
 	
Total	  	469	  	100.0	  	 	$584,583	  	  	100.0	  	18,214	  	100.0	

 
(1) Credit rating may reflect credit rating of parent or guarantor. Where differences exist between the S&P 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 December 31, 2010	 	 	 	 	 	 	Twelve Months Ended December 31, 2010	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Leased Square
Footage	 	 	Rentable Square
Footage	 	 	Percent Leased (1)	 	 	 	 	 	 	Leased
Square
Footage	 	 	Rentable Square
Footage	 	 	Percent Leased (1)	 	

As of September 30, 2010	 	 	18,192	  	 	 	20,429	  	 	 	89.0%	  	 	 	 	As of December 31, 2009	 	 	18,221	  	 	 	20,229	  	 	 	90.1%	  	
 
New Leases	 	 	825	  	 	 	 	 	 	 	 	 	 	 	 	New Leases	 	 	2,762	  	 	 	 	 	 	 	 	 	
Expired Leases	 	 	(764	) 	 	 	 	 	 	 	 	 	 	 	 	Expired Leases	 	 	(2,729	) 	 	 	 	 	 	 	 	 	
Other	 	 	2	  	 	 	4	  	 	 	 	 	 	 	 	Other	 	 	1	  	 	 	62	  	 	 	 	 	

Subtotal	 	 	18,255	  	 	 	20,433	  	 	 	89.3%	  	 	 	 	Subtotal	 	 	18,255	  	 	 	20,291	  	 	 	90.0%	  	
 
Acquisitions	 	 	368	  	 	 	384	  	 	 	 	 	 	 	 	Acquisitions	 	 	368	  	 	 	526	  	 	 	 	 	
Dispositions	 	 	(409	) 	 	 	(409	) 	 	 	 	 	 	 	 	Dispositions	 	 	(409	) 	 	 	(409	) 	 	 	 	 	
 
As of December 31, 2010  (2)	 	 	18,214	  	 	 	20,408	  	 	 	89.2%	  	 	 	 	As of December 31, 2010  (2)	 	 	18,214	  	 	 	20,408	  	 	 	89.2%	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental Rate Roll Up / Roll Down (3) (4)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Square Feet	 	 	% of Total Signed
During Period	 	 	% of Rentable Square Footage	 	 	% Change
Cash Rents	 	 	% Change
Accrual Rents  (5)	 	
 	 	 	 	 	
For the three months ended December 31, 2010:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 
New, renewal, and expansion leases executed for spaces vacant less than one year	 	 	452	  	 	 	58	% 	 	 	2.2	% 	 	 	(19.5	%) 	 	 	(10.3	%) 	
 
Leases executed for spaces excluded from analysis  (6)	 	 	331	  	 	 	42	% 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	
For the twelve months ended December 31, 2010:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 
New, renewal, and expansion leases executed for spaces vacant less than one year	 	 	1,501	  	 	 	71	% 	 	 	7.4	% 	 	 	(21.6	%) 	 	 	(15.4	%) 	
 
Leases executed for spaces excluded from analysis  (6)	 	 	607	  	 	 	29	% 	 	 	 	 	 	 	 	 	 	 	 	 	

(1) Calculated as leased square footage as of period end with the addition of square footage associated with uncommenced leases for spaces vacant as of period end, divided by total rentable square footage as of period end, expressed as a percentage.
(2) The square footage associated with leases with end of period expiration dates is included in the end of the period leased square footage.
(3) 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.
(4) For leases under which a tenant may use, at its discretion, a portion of its tenant improvement allowance for expenses other than those related to improvements to its space, an assumption is made that the tenant elects to use any such portion of its tenant improvement allowance for improvements to its space prior to the commencement of its lease. This assumption is made based upon the historical tenant improvement allowance usage patterns of the Company’s tenants.
(5) 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.
(6) 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. During the fourth quarter of 2010, a renewal lease was signed with KPMG at 150 West Jefferson; however, because the tenant is vacating its old premises and moving to space that has been vacant for greater than a year, it is excluded from the analysis.
 
21

Piedmont Office Realty Trust, Inc.
Lease Expiration Schedule
As of December 31, 2010
(in thousands)

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

Vacant	 	$0	 	0.0	 	2,195	 	10.8	 	 	 	$0	 	0.0	 	N/A	
2011(2)	 	73,231	 	12.5	 	2,017	 	9.9	 	 	 	19,216	 	3.3	 	26.2	
2012	 	79,771	 	13.6	 	2,053	 	10.1	 	 	 	36,763	 	6.3	 	46.1	
2013	 	63,498	 	10.9	 	1,617	 	7.9	 	 	 	1,598	 	0.3	 	2.5	
2014	 	51,894	 	8.9	 	1,684	 	8.3	 	 	 	3,601	 	0.6	 	6.9	
2015	 	43,421	 	7.4	 	1,555	 	7.6	 	 	 	0	 	0.0	 	0.0	
2016	 	32,623	 	5.6	 	1,181	 	5.8	 	 	 	1,265	 	0.2	 	3.9	
2017	 	18,526	 	3.2	 	545	 	2.7	 	 	 	1,251	 	0.2	 	6.8	
2018	 	46,060	 	7.9	 	1,565	 	7.7	 	 	 	8,647	 	1.5	 	18.8	
2019	 	49,848	 	8.5	 	1,436	 	7.0	 	 	 	18,551	 	3.2	 	37.2	
2020	 	30,652	 	5.2	 	1,125	 	5.5	 	 	 	11,773	 	2.0	 	38.4	
2021	 	15,017	 	2.6	 	533	 	2.6	 	 	 	1,025	 	0.2	 	6.8	
2022	 	16,772	 	2.9	 	696	 	3.4	 	 	 	0	 	0.0	 	0.0	
2023	 	24,837	 	4.2	 	1,150	 	5.6	 	 	 	0	 	0.0	 	0.0	
2024	 	22,231	 	3.8	 	540	 	2.6	 	 	 	0	 	0.0	 	0.0	
Thereafter	 	16,202	 	2.8	 	516	 	2.5	 	 	 	1,323	 	0.2	 	8.2	

Total / Weighted Average	 	$584,583	 	100.0	 	20,408	 	100.0	 	 	 	$105,013	 	18.0	 	 	

 
 
(1) Annualized Lease Revenue for purposes of this schedule includes the revenue effects of leases executed but not commenced as of December 31, 2010.
(2) Includes leases with an expiration date of December 31, 2010 aggregating 110,773 square feet and Annualized Lease Revenue of $4,282,926.
 
22

Piedmont Office Realty Trust, Inc.
Annual Lease Expirations
As of December 31, 2010
(in thousands)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	12/31/2011(2)	 	12/31/2012	 	12/31/2013	 	12/31/2014	

Expiring
Square
  Footage  	 	  Expiring Lease  
Revenue  (1)	 	Expiring
Square
  Footage  	 	  Expiring Lease  
Revenue  (1)	 	Expiring
Square
  Footage  	 	  Expiring Lease  
Revenue  (1)	 	Expiring
Square
  Footage  	 	  Expiring Lease  
Revenue  (1)	

Atlanta	 	97	 	$1,927	 	34	 	$620	 	29	 	$726	 	28	 	$574	
Austin	 	0	 	0	 	0	 	0	 	0	 	0	 	0	 	0	
Boston	 	0	 	0	 	7	 	333	 	0	 	29	 	27	 	1,829	
Central & South Florida	 	146	 	3,348	 	4	 	108	 	7	 	201	 	18	 	441	
Chicago	 	523	 	20,185	 	42	 	1,596	 	769	 	31,205	 	28	 	1,072	
Cleveland	 	0	 	0	 	112	 	1,920	 	14	 	337	 	0	 	0	
Dallas	 	124	 	2,749	 	86	 	2,000	 	9	 	232	 	41	 	979	
Denver	 	0	 	0	 	0	 	0	 	0	 	0	 	0	 	0	
Detroit	 	225	 	4,200	 	84	 	2,287	 	147	 	3,429	 	6	 	121	
Houston	 	0	 	0	 	0	 	0	 	0	 	0	 	0	 	0	
Los Angeles	 	94	 	3,526	 	46	 	1,698	 	69	 	2,489	 	5	 	209	
Minneapolis	 	223	 	7,527	 	30	 	981	 	45	 	1,447	 	807	 	22,971	
Nashville	 	0	 	0	 	0	 	0	 	0	 	0	 	0	 	0	
New York	 	6	 	410	 	585	 	19,755	 	232	 	8,617	 	96	 	4,195	
Philadelphia	 	0	 	0	 	0	 	0	 	0	 	0	 	0	 	0	
Phoenix	 	45	 	788	 	0	 	0	 	0	 	0	 	0	 	0	
Portland	 	105	 	1,506	 	147	 	2,035	 	0	 	0	 	74	 	1,052	
Seattle	 	38	 	1,522	 	0	 	0	 	0	 	0	 	0	 	0	
Washington, D.C.	 	391	 	20,950	 	876	 	41,525	 	296	 	14,119	 	554	 	18,564	

Total / Weighted Average (3)	 	2,017	 	$68,638	 	2,053	 	$74,858	 	1,617	 	$62,831	 	1,684	 	$52,007	

 
(1) Expiring lease revenue is calculated as expiring square footage multiplied by the rent per square foot of the tenant currently leasing the space.
(2) Includes leases with an expiration date of December 31, 2010 aggregating 110,773 square feet.
(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 December 31, 2010
Unaudited ($ in thousands)

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	
 	 	 	  	For the Three Months Ended	 	
 	 	 	  	 	 	 	
 	 	 	  	    December 31, 2010  	 	  	September 30, 2010  	 	  	June 30, 2010    	 	  	March 31, 2010    	 	  	December 31, 2009    	 	
 	 	 	  	 	 	 	
 	 	Non-incremental (1)	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
 	 	 
Bldg / construction / dev	  	 	$3,082	  	  	 	$2,293	  	  	 	$3,607	  	  	 	$2,638	  	  	 	$2,539 	  	
 	 	Tenant improvements	  	 	17,197	  	  	 	6,088	  	  	 	2,333	  	  	 	4,039	  	  	 	11,359 	  	
 	 	Leasing costs	  	 	6,315	  	  	 	4,948	  	  	 	3,029	  	  	 	2,737	  	  	 	6,076 	  	
 	 	 	  	 	 	 	
 	 	Total non-incremental	  	 	26,594 	  	  	 	13,329 	  	  	 	8,969 	  	  	 	9,414 	  	  	 	19,974 	  	
 	 	 	 	 	 	 	
 	 	Incremental (1)	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
 	 	 
Bldg / construction / dev	  	 	1,174	  	  	 	417	  	  	 	439	  	  	 	250	  	  	 	1,559 	  	
 	 	Tenant improvements	  	 	6	  	  	 	0	  	  	 	0	  	  	 	0	  	  	 	19 	  	
 	 	Leasing costs	  	 	2,531	  	  	 	0	  	  	 	0	  	  	 	0	  	  	 	0 	  	
 	 	 	  	 	 	 	
 	 	Total incremental	  	 	3,711	  	  	 	417	  	  	 	439	  	  	 	250	  	  	 	1,578 	  	

 	 	Total capital expenditures	  	 	$30,305	  	  	 	$13,746	  	  	 	$9,408	  	  	 	$9,664	  	  	 	$21,552 	  	

 	 	 	 	 	 	 	 	 	 	 	 	 	

 	 	Tenant improvement commitments (2)	 	 	  	 	 	 	  	 	 	 	
 	 	 
Tenant improvement commitments outstanding as of September 30, 2010	 	 	  	$	114,858 	  	  	 	 	 	
 	 	New tenant improvement commitments related to leases executed during period	 	 	  	 	17,313 	  	  	 	 	 	
 	 	Tenant improvement commitments fulfilled, expired or other adjustments (3)	 	 	  	 	(20,781) 	  	  	 	 	 	
 	 	 	 	 	 	  	 	 	 	
 	 	Total as of December 31, 2010	 	 	  	$	111,390 	  	  	 	 	 	

 
 
NOTE: The information presented on this page is for all consolidated assets, inclusive of our industrial properties.
(1) Definitions for non-incremental and incremental capital expenditures can be found on pages 29 and 30.
(2) Commitments are unexpired contractual tenant improvement obligations for leases executed in current and prior periods that have not yet been incurred and have not otherwise been presented on Piedmont’s financial statements. The three largest commitments total approximately $61.0 million, or 55% of total outstanding commitments.
(3) Amount reflects an adjustment for a pre-commencement contraction option exercised by KPMG at Aon Center in Chicago, IL during the fourth quarter of 2010. The tenant improvement commitment associated with the KPMG lease decreased by approximately $3.9 million.
 
24

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	For the Twelve	 	  	For the Year Ended	 	
 	 	 	 	Months Ended
December 31, 2010    	 	  	2009	 	  	2008	 	  	2007	 	
  Renewal Leases	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
 	 	 
Number of leases	 	 	37	  	  	 	34	  	  	 	34	  	  	 	39	  	
 	 	Square feet	 	 	1,241,481	  	  	 	1,568,895	  	  	 	967,959	  	  	 	1,672,383	  	
 	 	 
Tenant improvements per square foot (1)	 	 	$14.40	  	  	 	$12.01	  	  	 	$8.28	  	  	 	$13.19	  	
 	 	Leasing commissions per square foot	 	 	$8.40	  	  	 	$5.51	  	  	 	$7.17	  	  	 	$7.18	  	
 	 	Total per square foot	 	 	$22.80	  	  	 	$17.52	  	  	 	$15.45	  	  	 	$20.37	  	
 	 	 	 	 	 	
 	 	Tenant improvements per square foot per year of lease term	 	 	$1.74	  	  	 	$1.44	  	  	 	$1.39	  	  	 	$1.85	  	
 	 	Leasing commissions per square foot per year of lease term	 	 	$1.02	  	  	 	$0.66	  	  	 	$1.20	  	  	 	$1.01	  	
 	 	Total per square foot per year of lease term	 	 	$2.76	  	  	 	$2.10	  	  	 	$2.59	  	  	 	$2.86	  	
 	 	 	 	 	
  New Leases	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
 	 	 
Number of leases	 	 	56	  	  	 	28	  	  	 	37	  	  	 	44	  	
 	 	Square feet	 	 	866,212	  	  	 	700,295	  	  	 	747,919	  	  	 	508,605	  	
 	 	 
Tenant improvements per square foot (1)	 	 	$32.65	  	  	 	$45.04	  	  	 	$30.59	  	  	 	$24.93	  	
 	 	Leasing commissions per square foot	 	 	$11.28	  	  	 	$17.12	  	  	 	$15.95	  	  	 	$10.39	  	
 	 	Total per square foot	 	 	$43.93	  	  	 	$62.16	  	  	 	$46.54	  	  	 	$35.32	  	
 	 	 	 	 	 	
 	 	Tenant improvements per square foot per year of lease term	 	 	$4.16	  	  	 	$4.05	  	  	 	$3.24	  	  	 	$3.29	  	
 	 	Leasing commissions per square foot per year of lease term	 	 	$1.44	  	  	 	$1.54	  	  	 	$1.69	  	  	 	$1.37	  	
 	 	Total per square foot per year of lease term	 	 	$5.60	  	  	 	$5.59	  	  	 	$4.93	  	  	 	$4.66	  	
 	 	 	 	 	
  Total	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
 	 	 
Number of leases	 	 	93	  	  	 	62	  	  	 	71	  	  	 	83	  	
 	 	Square feet	 	 	2,107,693	  	  	 	2,269,190	  	  	 	1,715,878	  	  	 	2,180,988	  	
 	 	 
Tenant improvements per square foot (1)	 	 	$21.90	  	  	 	$22.21	  	  	 	$18.01	  	  	 	$15.93	  	
 	 	Leasing commissions per square foot	 	 	$9.59	  	  	 	$9.09	  	  	 	$11.00	  	  	 	$7.93	  	
 	 	Total per square foot	 	 	$31.49	  	  	 	$31.30	  	  	 	$29.01	  	  	 	$23.86	  	
 	 	 	 	 	 	
 	 	Tenant improvements per square foot per year of lease term	 	 	$2.70	  	  	 	$2.42	  	  	 	$2.41	  	  	 	$2.21	  	
 	 	Leasing commissions per square foot per year of lease term	 	 	$1.18	  	  	 	$0.99	  	  	 	$1.47	  	  	 	$1.10	  	
 	 	Total per square foot per year of lease term	 	 	$3.88	  	  	 	$3.41	  	  	 	$3.88	  	  	 	$3.31	  	
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 in which a tenant may use, at its discretion, a portion of its tenant improvement allowance for expenses other than those related to improvements to its space, an assumption is made that the tenant elects to use any such portion of its tenant improvement allowance for improvements to its space prior to the commencement of its lease. This assumption is made based upon the historical tenant improvement allowance usage patterns of the Company’s tenants.
 
25

Piedmont Office Realty Trust, Inc.
Geographic Diversification
As of December 31, 2010

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Location	  	Number of
Properties	  	  	  	Annualized Lease
Revenue ($’s in
thousands)	  	  	  	Percentage of
Annualized Lease
Revenue (%)	  	  	  	Rentable Square
Footage (in
Thousands)	  	  	  	Percentage of
Rentable Square
Footage (%)	  	  	  	Leased Square
Footage (in
thousands)	  	  	  	Percent Leased  
(%)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Chicago	  	6	  	 	  	$153,709	  	 	  	26.3	  	 	  	4,889	  	 	  	24.0	  	 	  	4,310	  	 	  	88.2	
Washington, D.C.	  	14	  	 	  	122,341	  	 	  	20.9	  	 	  	3,045	  	 	  	14.9	  	 	  	2,788	  	 	  	91.6	
New York	  	8	  	 	  	91,453	  	 	  	15.6	  	 	  	2,920	  	 	  	14.3	  	 	  	2,748	  	 	  	94.1	
Minneapolis	  	4	  	 	  	46,187	  	 	  	7.9	  	 	  	1,612	  	 	  	7.9	  	 	  	1,580	  	 	  	98.0	
Los Angeles	  	5	  	 	  	29,744	  	 	  	5.1	  	 	  	1,144	  	 	  	5.6	  	 	  	913	  	 	  	79.8	
Dallas	  	7	  	 	  	25,767	  	 	  	4.4	  	 	  	1,275	  	 	  	6.2	  	 	  	1,152	  	 	  	90.4	
Boston	  	4	  	 	  	23,764	  	 	  	4.1	  	 	  	583	  	 	  	2.9	  	 	  	562	  	 	  	96.4	
Detroit	  	4	  	 	  	18,905	  	 	  	3.2	  	 	  	929	  	 	  	4.5	  	 	  	794	  	 	  	85.5	
Philadelphia	  	1	  	 	  	14,897	  	 	  	2.5	  	 	  	761	  	 	  	3.7	  	 	  	761	  	 	  	100.0	
Atlanta	  	4	  	 	  	10,605	  	 	  	1.8	  	 	  	750	  	 	  	3.7	  	 	  	455	  	 	  	60.7	
Houston	  	1	  	 	  	9,562	  	 	  	1.6	  	 	  	313	  	 	  	1.5	  	 	  	313	  	 	  	100.0	
Nashville	  	1	  	 	  	6,975	  	 	  	1.2	  	 	  	312	  	 	  	1.5	  	 	  	312	  	 	  	100.0	
Phoenix	  	4	  	 	  	6,287	  	 	  	1.1	  	 	  	557	  	 	  	2.7	  	 	  	344	  	 	  	61.8	
Central & South Florida	  	3	  	 	  	6,192	  	 	  	1.1	  	 	  	299	  	 	  	1.5	  	 	  	264	  	 	  	88.3	
Austin	  	1	  	 	  	5,428	  	 	  	0.9	  	 	  	195	  	 	  	1.0	  	 	  	195	  	 	  	100.0	
Portland	  	4	  	 	  	4,593	  	 	  	0.8	  	 	  	325	  	 	  	1.6	  	 	  	325	  	 	  	100.0	
Cleveland	  	2	  	 	  	3,262	  	 	  	0.6	  	 	  	187	  	 	  	0.9	  	 	  	175	  	 	  	93.6	
Denver	  	1	  	 	  	2,712	  	 	  	0.5	  	 	  	156	  	 	  	0.8	  	 	  	156	  	 	  	100.0	
Seattle	  	1	  	 	  	2,200	  	 	  	0.4	  	 	  	156	  	 	  	0.8	  	 	  	67	  	 	  	42.9	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total / Weighted Average	  	75	  	 	  	$584,583	  	 	  	100.0	  	 	  	20,408	  	 	  	100.0	  	 	  	18,214	  	 	  	89.2	

 
26

Piedmont Office Realty Trust, Inc.
Industry Diversification
As of December 31, 2010

 
 	 	 	 	 	 	 	 	 	 	 	 	 	
Industry Diversification	 	  Number of  
Tenants	 	  Percentage of  
Total Tenants
(%)	 	  Annualized Lease  
Revenue ($’s in
thousands)	 	Percentage of
  Annualized Lease  
Revenue (%)	 	  Leased Square  
Footage (in
thousands)	 	Percentage of
  Leased Square  
Footage (%)	

Governmental Entity	 	5	 	1.3	 	$105,013	 	18.0	 	2,528	 	13.9	
Business Services	 	60	 	15.0	 	68,338	 	11.7	 	2,170	 	11.9	
Depository Institutions	 	14	 	3.5	 	56,852	 	9.7	 	1,790	 	9.8	
Legal Services	 	10	 	2.5	 	38,118	 	6.5	 	1,055	 	5.8	
Insurance Carriers	 	21	 	5.3	 	37,016	 	6.3	 	1,498	 	8.2	
Petroleum Refining & Related Industries	 	1	 	0.3	 	32,477	 	5.6	 	776	 	4.3	
Chemicals & Allied Products	 	8	 	2.0	 	24,706	 	4.2	 	736	 	4.0	
Engineering, Accounting, Research, Management & Related Services	 	26	 	6.5	 	22,209	 	3.8	 	654	 	3.6	
Nondepository Credit Institutions	 	12	 	3.0	 	20,929	 	3.6	 	765	 	4.2	
Communications	 	33	 	8.2	 	17,328	 	3.0	 	595	 	3.3	
Security & Commodity Brokers, Dealers, Exchanges & Services	 	18	 	4.5	 	14,825	 	2.5	 	532	 	2.9	
Food & Kindred Products	 	4	 	1.0	 	14,214	 	2.4	 	423	 	2.3	
Electronic & Other Electrical Equipment & Components, Except Computer	 	10	 	2.5	 	13,959	 	2.4	 	622	 	3.4	
Educational Services	 	7	 	1.7	 	11,831	 	2.0	 	276	 	1.5	
Transportation Equipment	 	3	 	0.7	 	10,567	 	1.8	 	325	 	1.8	
Other	 	168	 	42.0	 	96,201	 	16.5	 	3,469	 	19.1	
 	
Total	 	400	 	100.0	 	$584,583	 	100.0	 	18,214	 	100.0	

 
27

Piedmont Office Realty Trust, Inc.
Other Investments
As of December 31, 2010

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INDUSTRIAL PROPERTIES	 	Location	 	Percent
  Ownership (%)  	 	 	  Year Built  	 	 	 	 	 	Real Estate
Net Book
  Value ($’s in  
thousands)	 	 	  Rentable Square  
Footage (in
thousands)	 	 	Percent
  Leased (%)  	 	
 	 	
112 Hidden Lake Circle	 	Duncan, SC	 	 	100	  	 	 	1987	  	 	 	 	 	 	 	$9,853	  	 	 	313.4	  	 	 	100.0	  	
110 Hidden Lake Circle	 	Duncan, SC	 	 	100	  	 	 	1987	  	 	 	 	 	 	 	13,240	  	 	 	473.4	  	 	 	36.8	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$23,093	  	 	 	786.8	  	 	 	61.9	  	

UNCONSOLIDATED JOINT VENTURE PROPERTIES  (1)     	 	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	 	Broomfield, CO	 	 	4	  	 	 	1996	  	 	 	$237	  	 	 	$6,431	  	 	 	51.7	  	 	 	100.0	  	
47300 Kato Road	 	Fremont, CA	 	 	78	  	 	 	1982	  	 	 	2,668	  	 	 	3,442	  	 	 	58.4	  	 	 	0.0	  	
20/20 Building	 	Leawood, KS	 	 	57	  	 	 	1992	  	 	 	2,603	  	 	 	4,586	  	 	 	68.3	  	 	 	90.6	  	
4685 Investment Drive	 	Troy, MI	 	 	55	  	 	 	2000	  	 	 	5,172	  	 	 	9,402	  	 	 	77.1	  	 	 	100.0	  	
5301 Maryland Way	 	Brentwood, TN	 	 	55	  	 	 	1989	  	 	 	11,073	  	 	 	20,129	  	 	 	201.2	  	 	 	100.0	  	
8560 Upland Drive	 	Parker, CO	 	 	72	  	 	 	2001	  	 	 	7,685	  	 	 	10,690	  	 	 	148.2	  	 	 	100.0	  	
Two Park Center	 	Hoffman Estates, IL	 	 	72	  	 	 	1999	  	 	 	11,575	  	 	 	16,101	  	 	 	193.7	  	 	 	83.0	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	$41,013	  	 	 	$70,781	  	 	 	798.6	  	 	 	87.8	  	

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	  	 	 	 	 	

STRUCTURED FINANCE	 	Location	 	 	 	 	 	 	 	 	 	 	Book Value
($’s in
thousands)	 	 	 	 	 	 	 	
 	 	
Mezzanine Loan (2)	 	Chicago, IL	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$48,171	  	 	 	 	 	 	 	 	 	
Mezzanine Loan (2)	 	Chicago, IL	 	 	 	 	 	 	 	 	 	 	 	 	 	 	12,973	  	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$61,144	  	 	 	 	 	 	 	 	 	

 
(1) On October 15, 2010, Piedmont sold it's 4% ownership in 14400 Hertz Quail Springs Parkway, a 57,000 square foot building in Oklahoma City, OK.
(2) Secured by a pledge of the equity interest of the entity owning a 46-story, Class A commercial office building located in downtown Chicago. For additional information on this investment, please refer to our Quarterly Report on Form 10-Q as of and for the period ended September 30, 2010 or our Annual Report on Form 10-K as of and for the period ended December 31, 2010.
 
28

 	
Piedmont Office Realty Trust, Inc.
Supplemental Definitions
 
Included in this section are management’s statements regarding certain non-GAAP financial measures provided in this supplemental report and reasons why management believes that these measures provide useful information to investors about the Company’s financial condition and results of operations. Reconciliations of these non-GAAP measures are presented on pages 32-35.
 
Adjusted Funds From Operations (“AFFO”): AFFO is calculated by deducting from Core FFO non-incremental capital expenditures and adding back non-cash items including non-real estate depreciation, straight lined rents and fair value lease revenue, non-cash components of interest expense and compensation expense, and by making similar adjustments for unconsolidated partnerships and joint ventures. Although AFFO may not be comparable to that of other REITs, we believe it provides a meaningful indicator of our ability to fund cash needs and to make cash distributions to equity owners. AFFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating performance to net income, as an alternative to net cash flows from operating activities or as a measure of our liquidity.
 
Annualized Lease Revenue (“ALR”): ALR is calculated by multiplying (i) rental payments (defined as base rent plus operating expense reimbursements, if payable by the tenant on a monthly basis under the terms of a lease that have been executed, but excluding rental abatements and rental payments related to executed but not commenced leases for space that was covered by an existing lease), by (ii) 12. In instances in which contractual rents or operating expense reimbursements are collected on an annual, semi-annual, or quarterly basis, such amounts are multiplied by a factor of 1, 2, or 4, respectively, to calculate the annualized figure. For leases that have been executed but not commenced relating to un-leased space, ALR is calculated by multiplying (i) the monthly base rental payment plus any operating expense reimbursements for the initial month of the lease term, by (ii) 12. Unless stated otherwise, this measure excludes our industrial properties and unconsolidated joint venture interests.
 
Core EBITDA: Core EBITDA is defined as net income before interest, taxes, depreciation and amortization and incrementally 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.	
 
29

Piedmont Office Realty Trust, Inc.
Supplemental Definitions

 
 	
NOI from Unconsolidated Joint Ventures: NOI from Unconsolidated Joint Ventures is defined as Core NOI attributable to our interests in eight properties owned through unconsolidated partnerships. We present this measure on an accrual basis and a cash basis, which eliminates the effects of straight lined rents and fair value lease revenue. NOI from Unconsolidated Joint Ventures is a non-GAAP measure and therefore may not be comparable to similarly defined data provided by other REITs.
 
Non-Incremental Capital Expenditures: Non-Incremental Capital Expenditures are defined as capital expenditures of a recurring nature related to tenant improvements and leasing commissions that do not incrementally enhance the underlying assets’ income generating capacity. We exclude first generation tenant improvements and leasing commissions from this measure.
 
Same Store 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.	
 
30

Piedmont Office Realty Trust, Inc.
Research Coverage

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

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	  	 	 	  	Twelve Months Ended	 	
 	  	12/31/2010	 	  	9/30/2010	 	  	6/30/2010	 	  	3/31/2010	 	  	12/31/2009	 	  	 	 	  	12/31/2010	 	  	12/31/2009	 	
 	 	 	 	 	 	 	 	 	
Net income attributable to Piedmont	  	  $	    28,700  	  	  	  $	    40,584  	  	  	  $	    19,636  	  	  	  $	    31,460  	  	  	  $	    25,946  	  	  	 	 	 	  	  $	    120,379  	  	  	  $	74,700  	  	
 	 	 	 	 	 	 	 	 	
Net income attributable to noncontrolling interest	  	 	122  	  	  	 	158  	  	  	 	125  	  	  	 	125  	  	  	 	119  	  	  	 	 	 	  	 	531  	  	  	 	478  	  	
Interest expense	  	 	17,378  	  	  	 	17,359  	  	  	 	18,933  	  	  	 	19,091  	  	  	 	19,488  	  	  	 	 	 	  	 	72,761  	  	  	 	77,743  	  	
Depreciation	  	 	26,995  	  	  	 	26,339  	  	  	 	26,050  	  	  	 	26,428  	  	  	 	27,434  	  	  	 	 	 	  	 	105,814  	  	  	 	107,510  	  	
Amortization	  	 	11,623  	  	  	 	11,119  	  	  	 	11,104  	  	  	 	11,488  	  	  	 	16,274  	  	  	 	 	 	  	 	45,334  	  	  	 	57,708  	  	
Impairment loss on real estate assets	  	 	-      	  	  	 	53  	  	  	 	9,587  	  	  	 	-      	  	  	 	-      	  	  	 	 	 	  	 	9,640  	  	  	 	37,633  	  	
Gain / loss on sale of property	  	 	792  	  	  	 	-      	  	  	 	-     	  	  	 	-      	  	  	 	-      	  	  	 	 	 	  	 	792  	  	  	 	-      	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Core EBITDA	  	 	85,610  	  	  	 	95,612  	  	  	 	85,435  	  	  	 	88,592  	  	  	 	89,261  	  	  	 	 	 	  	 	355,251  	  	  	 	355,772  	  	
 	 	 	 	 	 	 	 	 	
General & administrative expenses	  	 	7,934  	  	  	 	7,001  	  	  	 	7,993  	  	  	 	6,696  	  	  	 	6,297  	  	  	 	 	 	  	 	29,624  	  	  	 	27,558  	  	
Management fee revenue	  	 	(948) 	  	  	 	(806) 	  	  	 	(705) 	  	  	 	(753) 	  	  	 	(928) 	  	  	 	 	 	  	 	(3,212) 	  	  	 	(3,111) 	  	
Interest and other income	  	 	(491) 	  	  	 	(993) 	  	  	 	(1,036) 	  	  	 	(969) 	  	  	 	(652) 	  	  	 	 	 	  	 	(3,489) 	  	  	 	(4,450) 	  	
Lease termination income	  	 	(2,589) 	  	  	 	(4,230) 	  	  	 	(479) 	  	  	 	(496) 	  	  	 	(1,982) 	  	  	 	 	 	  	 	(7,794) 	  	  	 	(2,764) 	  	
Lease termination expense - straight line rent & acquisition intangibles write-offs	  	 	461  	  	  	 	131  	  	  	 	679  	  	  	 	67  	  	  	 	552  	  	  	 	 	 	  	 	1,338  	  	  	 	1,353  	  	
Straight line rent adjustment	  	 	(3,791) 	  	  	 	(3,053) 	  	  	 	(1,463) 	  	  	 	1,006  	  	  	 	(2,619) 	  	  	 	 	 	  	 	(7,300) 	  	  	 	(2,809) 	  	
Net effect of amortization of above/(below) market in-place lease intangibles	  	 	(1,457) 	  	  	 	(1,510) 	  	  	 	(1,525) 	  	  	 	(1,426) 	  	  	 	(1,212) 	  	  	 	 	 	  	 	(5,919) 	  	  	 	(4,939) 	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Core net operating income	  	 	84,729  	  	  	 	92,152  	  	  	 	88,899  	  	  	 	92,717  	  	  	 	88,717  	  	  	 	 	 	  	 	358,499  	  	  	 	366,610  	  	
 	 	 	 	 	 	 	 	 	
Acquisitions	  	 	881  	  	  	 	2  	  	  	 	-  	  	  	 	-  	  	  	 	-  	  	  	 	 	 	  	 	883  	  	  	 	-  	  	
Dispositions	  	 	(1,119) 	  	  	 	(1,686) 	  	  	 	(1,683) 	  	  	 	(1,681) 	  	  	 	(1,672) 	  	  	 	 	 	  	 	(6,169) 	  	  	 	(6,667) 	  	
Industrial properties	  	 	(347) 	  	  	 	(91) 	  	  	 	(91) 	  	  	 	(273) 	  	  	 	(638) 	  	  	 	 	 	  	 	(803) 	  	  	 	(2,559) 	  	
Unconsolidated joint ventures	  	 	(1,165) 	  	  	 	(1,217) 	  	  	 	(1,186) 	  	  	 	(1,268) 	  	  	 	(1,156) 	  	  	 	 	 	  	 	(4,835) 	  	  	 	(4,793) 	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Same Store NOI	  	  $	82,979  	  	  	  $	89,160  	  	  	  $	85,939  	  	  	  $	89,495  	  	  	  $	85,251  	  	  	 	 	 	  	  $	347,575  	  	  	  $	    352,591  	  	

32

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	    	 	 	  	Twelve Months Ended	 	
 	  	  12/31/2010  	 	  	  9/30/2010  	 	  	  6/30/2010  	 	  	  3/31/2010  	 	  	  12/31/2009  	 	    	 	 	  	  12/31/2010  	 	  	  12/31/2009  	 	
 	 	 	 	 	 	 	 	 	
Equity in Income of Unconsolidated JVs	  	 	$630  	  	  	 	$619  	  	  	 	$647  	  	  	 	$737  	  	  	 	$672  	  	    	 	 	 	  	 	$2,633  	  	  	 	$104  	  	
 	 	 	 	 	 	 	 	 	
Interest expense	  	 	-    	  	  	 	-    	  	  	 	-    	  	  	 	-    	  	  	 	-    	  	    	 	 	 	  	 	-    	  	  	 	-    	  	
 	 	 	 	 	 	 	 	 	
Depreciation	  	 	310  	  	  	 	329  	  	  	 	337  	  	  	 	348  	  	  	 	344  	  	    	 	 	 	  	 	1,324  	  	  	 	1,437  	  	
 	 	 	 	 	 	 	 	 	
Amortization	  	 	101  	  	  	 	101  	  	  	 	101  	  	  	 	101  	  	  	 	101  	  	    	 	 	 	  	 	403  	  	  	 	408  	  	
 	 	 	 	 	 	 	 	 	
Impairment loss	  	 
	-  
	  
	  	 	53  	  	  	 	-  	  	  	 	-  	  	  	 	-  	  	    	 	 	 	  	 	53  	  	  	 	2,570  	  	
 	 	 	 	 	 	 	 	 	
Gain/loss on sale of property	  	 	(25) 	  	  	 	-  	  	  	 	-  	  	  	 	-  	  	  	 	-  	  	    	 	 	 	  	 	(25) 	  	  	 	-  	  	

Core EBITDA	  	 	1,016  	  	  	 	1,102  	  	  	 	1,085  	  	  	 	1,186  	  	  	 	1,117  	  	    	 	 	 	  	 	4,388  	  	  	 	4,519  	  	
 	 	 	 	 	 	 	 	 	
General & administrative expenses	  	 	73  	  	  	 	40  	  	  	 	38  	  	  	 	66  	  	  	 	71  	  	    	 	 	 	  	 	217  	  	  	 	165  	  	
 	 	 	 	 	 	 	 	 	
Interest and other income	  	 	-  	  	  	 	-  	  	  	 	-  	  	  	 	-  	  	  	 	-  	  	    	 	 	 	  	 	-  	  	  	 	-  	  	

Core net operating income (accrual basis)	  	 	1,089  	  	  	 	1,142  	  	  	 	1,123  	  	  	 	1,252  	  	  	 	1,188  	  	    	 	 	 	  	 	4,605  	  	  	 	4,684  	  	
 	 	 	 	 	 	 	 	 	
Straight-line effects of lease revenue	  	 	77  	  	  	 	76  	  	  	 	64  	  	  	 	17  	  	  	 	(31) 	  	    	 	 	 	  	 	235  	  	  	 	114  	  	
 	 	 	 	 	 	 	 	 	
Net effect of amortization of above/(below) market in-place lease intangibles	  	 	(1) 	  	  	 	(1) 	  	  	 	(1) 	  	  	 	(1) 	  	  	 	(1) 	  	    	 	 	 	  	 	(5) 	  	  	 	(5) 	  	

Core net operating income (cash basis)	  	  $	    1,165  	  	  	  $	    1,217  	  	  	  $	    1,186  	  	  	  $	    1,268  	  	  	  $	    1,156  	  	    	 	 	 	  	  $	    4,835  	  	  	  $	    4,793  	  	

33

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	 	 	 	 	Twelve Months Ended	 	
 	 	    12/31/2010    	 	 	    9/30/2010    	 	 	    6/30/2010    	 	 	    3/31/2010    	 	 	    12/31/2009    	 	 	 	 	 	    12/31/2010    	 	 	    12/31/2009    	 	
 	 	 	 	 	 	 	 	 	
Net income attributable to Piedmont	 	 	$28,700 	  	 	 	$40,584 	  	 	 	$19,636 	  	 	 	$31,460 	  	 	 	$25,946 	  	 	 	 	 	 	 	$120,379 	  	 	 	$74,700 	  	
 	 	 	 	 	 	 	 	 	
Depreciation	 	 	26,821 	  	 	 	26,163 	  	 	 	25,872 	  	 	 	26,250 	  	 	 	27,264 	  	 	 	 	 	 	 	105,107 	  	 	 	106,878 	  	
Amortization	 	 	11,623 	  	 	 	11,119 	  	 	 	11,104 	  	 	 	11,488 	  	 	 	16,274 	  	 	 	 	 	 	 	45,334 	  	 	 	57,708 	  	
Gain / (loss) on sale of property	 	 	792 	  	 	 	0 	  	 	 	0 	  	 	 	0 	  	 	 	0 	  	 	 	 	 	 	 	792 	  	 	 	0 	  	

Funds from operations	 	 	67,936 	  	 	 	77,866 	  	 	 	56,612 	  	 	 	69,198 	  	 	 	69,484 	  	 	 	 	 	 	 	271,612 	  	 	 	239,286 	  	
 	 	 	 	 	 	 	 	 	
Impairment loss	 	 	0 	  	 	 	53 	  	 	 	9,587 	  	 	 	0 	  	 	 	0 	  	 	 	 	 	 	 	9,640 	  	 	 	37,633 	  	

Core funds from operations	 	 	67,936 	  	 	 	77,919 	  	 	 	66,199 	  	 	 	69,198 	  	 	 	69,484 	  	 	 	 	 	 	 	281,252 	  	 	 	276,919 	  	
 	 	 	 	 	 	 	 	 	
Depreciation of non real estate assets	 	 	173 	  	 	 	176 	  	 	 	178 	  	 	 	178 	  	 	 	171 	  	 	 	 	 	 	 	707 	  	 	 	632 	  	
Stock-based and other non-cash compensation expense	 	 	1,223 	  	 	 	1,095 	  	 	 	711 	  	 	 	653 	  	 	 	671 	  	 	 	 	 	 	 	3,681 	  	 	 	3,178 	  	
Deferred financing cost amortization	 	 	608 	  	 	 	607 	  	 	 	696 	  	 	 	696 	  	 	 	696 	  	 	 	 	 	 	 	2,608 	  	 	 	2,786 	  	
Straight-line effects of lease revenue	 	 	(3,456)	  	 	 	(2,921)	  	 	 	(784)	  	 	 	1,073 	  	 	 	(1,618)	  	 	 	 	 	 	 	(6,088)	  	 	 	(997)	  	
Amortization of lease related intangibles	 	 	(1,331)	  	 	 	(1,510)	  	 	 	(1,525)	  	 	 	(1,426)	  	 	 	(1,663)	  	 	 	 	 	 	 	(5,793)	  	 	 	(5,399)	  	
Income from amortization of discount on purchase of mezzanine loans	 	 	(473)	  	 	 	(569)	  	 	 	(694)	  	 	 	(668)	  	 	 	(334)	  	 	 	 	 	 	 	(2,405)	  	 	 	(2,278)	  	
 	 	 	 	 	 	 	 	 	
Non-incremental capital expenditures	 	 	(26,594)	  	 	 	(13,329)	  	 	 	(8,969)	  	 	 	(9,414)	  	 	 	(19,974)	  	 	 	 	 	 	 	(58,305)	  	 	 	(46,452)	  	

Adjusted funds from operations	 	 	$38,086 	  	 	 	$61,468 	  	 	 	$55,812 	  	 	 	$60,290 	  	 	 	$47,433 	  	 	 	 	 	 	 	$215,657 	  	 	 	$228,389 	  	

34

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	 	 	 	 	Twelve Months Ended	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	12/31/2010	 	 	9/30/2010	 	 	6/30/2010	 	 	3/31/2010	 	 	12/31/2009	 	 	 	 	 	12/31/2010	 	 	12/31/2009	 	

Revenues:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental income	 	  $	          1,063	  	 	$	          1,595	  	 	$	          1,594	  	 	$	          1,594	  	 	$	          1,594 	  	 	 	 	 	 	  $	          5,846	  	 	$	          6,377 	  	
Tenant reimbursements	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	(2	) 	 	 	-     	  	 	 	 	 	 	 	(2	) 	 	 	3 	  	
Property management fee revenue	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-     	  	 	 	 	 	 	 	-    	  	 	 	-     	  	
Other rental income	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-     	  	 	 	 	 	 	 	-    	  	 	 	-     	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	 	 	1,063	  	 	 	1,595	  	 	 	1,594	  	 	 	1,592	  	 	 	1,594 	  	 	 	 	 	 	 	5,844	  	 	 	6,380 	  	
 	 	 	 	 	 	 	 	 	
Operating expenses:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property operating costs	 	 	8	  	 	 	5	  	 	 	8	  	 	 	8	  	 	 	19 	  	 	 	 	 	 	 	31	  	 	 	101 	  	
Depreciation	 	 	-    	  	 	 	-    	  	 	 	130	  	 	 	389	  	 	 	389 	  	 	 	 	 	 	 	519	  	 	 	1,556 	  	
Amortization	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-     	  	 	 	 	 	 	 	-    	  	 	 	-     	  	
General and administrative	 	 	38	  	 	 	156	  	 	 	2	  	 	 	10	  	 	 	7 	  	 	 	 	 	 	 	205	  	 	 	78 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses	 	 	46	  	 	 	161	  	 	 	140	  	 	 	407	  	 	 	415 	  	 	 	 	 	 	 	755	  	 	 	1,735 	  	

Operating income, excluding impairment loss and loss on sale	 	 	1,017	  	 	 	1,434	  	 	 	1,454	  	 	 	1,185	  	 	 	1,179 	  	 	 	 	 	 	 	5,089	  	 	 	4,645 	  	
 	 	 	 	 	 	 	 	 	
Impairment loss	 	 	-    	  	 	 	-    	  	 	 	(9,587	) 	 	 	-    	  	 	 	-     	  	 	 	 	 	 	 	(9,587	) 	 	 	-     	  	
Loss on sale	 	 	(817	) 	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-     	  	 	 	 	 	 	 	(817	) 	 	 	-     	  	

Income from discontinued operations	 	  $	200	  	 	$	1,434	  	 	$	(8,133	) 	 	$	1,185	  	 	$	1,179 	  	 	 	 	 	 	  $	(5,315	) 	 	$	4,645 	  	

35

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

 	
Certain statements contained in this supplemental package constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We intend for all such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, as applicable. Such information is subject to certain risks and uncertainties, as well as known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of our performance in future periods. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “continue” or similar words or phrases that are predictions of future events or trends and which do not relate solely to historical matters.
 
The following are some of the factors that could cause 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 our Quarterly Report on Form 10-Q as of and for the period ended September 30, 2010 and other documents we file with the Securities and Exchange Commission.
 
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this supplemental report. We cannot guarantee the accuracy of any such forward-looking statements contained in this supplemental report, and we do not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.	
 
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