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)	 	              August 9,  2011	
Piedmont Office Realty Trust, Inc.
 
(Exact Name of Registrant as Specified in Charter)

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

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

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

Item 2.02 Results of Operations and Financial Condition
On August 9, 2011, Piedmont Office Realty Trust, Inc. (the “Registrant”) issued a press release announcing its financial results for the second quarter 2011, and published supplemental information for the second quarter 2011 to its website. The press release and the supplemental information are attached hereto as Exhibit 99.1 and 99.2, respectively, and are incorporated herein by reference. Pursuant to the rules and regulations of the Securities and Exchange Commission, such exhibits and the information set forth therein are deemed to have been furnished and shall not be deemed to be “filed” under the Securities Exchange Act of 1934.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits:

Exhibit No.	  	Description                                                                                  	
99.1	  	Press release dated August 9, 2011.	
99.2	  	Piedmont Office Realty Trust, Inc. Quarterly Supplemental Information for the Second Quarter 2011.	

2

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

 	 	PIEDMONT OFFICE REALTY TRUST, INC.	  	 	
 	 	(Registrant)	  	 	
 	 	 	 	
 	 	By:	    	/s/ Robert E. Bowers	  	 	
 	 	 	    	Robert E. Bowers	  	 	
 	 	 	    	Chief Financial Officer and Executive Vice President	  	 	
Date: August 9, 2011
 
3

EXHIBIT INDEX

Exhibit No.	    	Description                                                                                  	
99.1	    	Press release dated August 9, 2011.	
99.2	    	Piedmont Office Realty Trust, Inc. Quarterly Supplemental Information for the Second Quarter 2011.	
 
4

Exhibit 99.1

 
Piedmont Office Realty Trust Reports Second Quarter Results	
ATLANTA, August 9, 2011 — Piedmont Office Realty Trust, Inc. (“Piedmont” or the “Company”) (NYSE:PDM), an owner of primarily Class A properties located predominantly in the ten largest U.S. office markets, today announced its results for the quarter ended June 30, 2011.
Highlights for the Three Months Ended June 30, 2011:
 
 	—	 	Achieved Funds From Operations (“FFO”) of $0.38 per diluted share;	
 
 	—	 	Completed approximately 1.2 million square feet of leasing at the Company’s 79 consolidated office properties, including 741,000 square feet of renewal leases and 439,000 square feet of new leases;	
 
 	—	 	Purchased The Dupree, a 138,000 square foot building located in Atlanta’s Northwest submarket and The Medici, a 152,000 square-foot building located at 3284 Northside Parkway NW in the Piazza at Paces mixed-use development complex in Atlanta’s Buckhead submarket;	
 
 	—	 	Made progress on our strategic capital allocation strategy.	
Donald A. Miller, CFA, President and Chief Executive Officer stated, “We continue to make meaningful progress on the leasing front as well as on our targeted capital allocation strategy. During the second quarter of 2011, Piedmont leased nearly 1.2 million square feet of space, purchased two new buildings and made progress toward recycling capital out of non-core markets. As we seek to deploy our available capital, we maintain an active pipeline and a disciplined approach to acquiring a combination of stabilized and value-add assets. As one of the largest office REITs with a diversified portfolio and a strong balance sheet, we believe we are able to take advantage of opportunistic market conditions and capitalize on improving office fundamentals.”
Results for the Second Quarter ended June 30, 2011:
Piedmont’s net income available to common stockholders was $21.0 million, or $0.12 per diluted share, for the second quarter of 2011, compared with $19.6 million, or $0.11 per diluted share, for the second quarter 2010. FFO totaled $65.1 million, or $0.38 per diluted share, for the current quarter as compared with $56.6 million, or $0.33 per diluted share for the quarter ended June 30, 2010. The prior year results reflect a $9.6 million, or $0.05 per share, impairment charge. Excluding $0.7 million of transaction costs associated with the Company’s two acquisitions in the quarter, Core FFO totaled $65.8 million, or $0.38 per diluted share, for the current quarter, as compared to $66.2 million, or $0.38 per diluted share, for the quarter

ended June 30, 2010. Adjusted FFO (“AFFO”) for the second quarter of 2011 totaled $47.0 million, or $0.27 per diluted share, as compared to $55.8 million, or $0.32 per diluted share, in the second quarter of 2010, reflecting increased capital expenditures during the current quarter associated with leasing activity.
Revenues for the quarter ended June 30, 2011 totaled $112.8 million compared to $110.0 million in the same period a year ago. Property operating expenses were $58.7 million in the second quarter of 2011 compared to $55.3 million in the second quarter of 2010, with the increase in the current quarter reflecting the acquisition of seven additional properties since July 1, 2010. Same store net operating income (on a cash basis) for the quarter was $82.4 million compared to $85.9 million for the quarter ended June 30, 2010.
Leasing Update
During the second quarter of 2011, the Company executed approximately 1.2 million square feet of office leasing throughout its markets. Of the leases signed during the quarter, 741,000 square feet, or 63 percent, was renewal-related and 439,000 square feet, or 37 percent, was with new tenants. Leases executed year to date will increase rental rates upon commencement by 5.4 percent and 8.6 percent on a cash and accrual basis, respectively. The Company’s overall office portfolio was 86.5 percent leased as of June 30, 2011, with a weighted average lease term remaining of 6.3 years. The Company’s overall leased percentage decreased 330 basis points from June 30, 2010, primarily as the result of several value-add acquisitions over the past twelve months including 500 W. Monroe Street (67 percent leased), The Medici (22 percent leased), 1200 Enclave Parkway (18 percent leased), and Suwanee Gateway One (0 percent leased). On a same store basis, the Company’s portfolio was 88.9 percent leased as of June 30, 2011 as compared to 89.5 percent leased as of June 30, 2010. The Company continues to actively manage 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 22 of Piedmont’s quarterly supplemental reporting package.
Capital Markets and Financing Activities
As previously announced, Piedmont purchased two Class A properties in the Atlanta market during the second quarter of 2011. Piedmont acquired The Dupree, a Class-A, six-story, 137,818 square foot building located in Atlanta’s Northwest submarket for approximately $20.5 million in an off-market transaction and The Medici, a Class-A, 152,221 square foot property located within the Piazza at Paces mixed-use development complex in Atlanta’s Buckhead submarket for $13.2 million. Additionally, Piedmont also completed the sale of another of its unconsolidated (4% owned) joint ventures, 360 Interlocken Boulevard, in Broomfield, CO.
Piedmont’s gross assets amounted to $5.5 billion as of June 30, 2011. Total debt remained at approximately $1.6 billion as of June 30, 2011, consistent with the previous quarter of 2011. The Company’s total debt-to-gross assets ratio was 29.8 percent as of June 30, 2011 as compared with 26.6 percent as of December 31, 2010, reflecting the assumption of $185.0 million of debt in conjunction with the acquisition of the 500 W. Monroe building during the previous quarter. Net debt to annualized core EBITDA ratio was 4.7 times and the Company`s fixed charge

coverage ratio was 4.4 times. As of June 30, 2011, Piedmont had cash and capacity on its unsecured line of credit of approximately $203 million.
Subsequent to Quarter End
Acquisitions and Dispositions
On July 1, 2011, the Company completed the sale of its Eastpointe Corporate Center property, located in suburban Seattle at 22833 SE Black Nugget Road, Issaquah, WA for approximately $32 million. The sale completes Piedmont’s exit from the Seattle market, which Piedmont has currently designated as a non-core market in its capital allocation strategy.
On August 1, 2011, Piedmont entered into an agreement to sell its 96.5% ownership interest in 35 West Wacker Drive, an office building located in Chicago, IL, at a gross sale price that values the building at $401 million. The sale is contingent upon satisfactory completion of due diligence and lender approvals and is anticipated to close by year end.
Dividend
On August 9, 2011, the Board of Directors of Piedmont declared dividends for the third quarter of 2011 in the amount of $0.315 per common share outstanding to stockholders of record as of the close of business on September 1, 2011. Such dividends are to be paid on September 22, 2011.
Guidance for 2011
The Company reiterates financial guidance for full-year 2011 based on management’s expectations as follows:

 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Low	  	 	 	  	High	  	 	 	
Core FFO	  	$256	  	 	—  	  	  	$269	  	 	Million	  	
 	 	 	 	 	
Core FFO per diluted share	  	$1.48	  	 	—  	  	  	$1.56	  	 	 	 	
These estimates reflect management’s view of current market conditions and incorporate certain economic and operational assumptions and projections. These estimates exclude future acquisitions and dispositions which could result in a change in the Company’s 2011 outlook and guidance when they are consummated. Actual results could differ from these estimates. Note that individual quarters may fluctuate on both a cash basis and an accrual basis due to the timing of repairs and maintenance, capital expenditures, capital markets activities and one-time revenue or expense events. In addition, the Company’s guidance is based on information available to management as of the date of this release.
Non-GAAP Financial Measures
This release contains certain supplemental non-GAAP financial measures such as FFO, AFFO, Core FFO, Same store net operating income, and Core EBITDA. See below for definitions and reconciliations of these metrics to their most comparable GAAP metric.
Conference Call Information
Piedmont has scheduled a conference call and an audio webcast for Wednesday, August 10, 2011 at 10:00 A.M. Eastern Time. The live audio webcast of the call may be accessed on the Company’s website at www.piedmontreit.com in the Investor Relations section. Dial-in numbers are 1-877-407-4018 for participants in the United States and 1-201-689-8471 for international participants. The conference identification number is 375750. A replay of the conference call will be available until August 24, 2011, and can be accessed by dialing 1-877-870-5176 or 1-858-384-5517 for international participants, followed by passcode 375750. 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 second quarter 2011 performance, discuss recent events, and conduct a question-and-answer period.
Supplemental Information
Quarterly Supplemental Information as of and for the three months ended June 30, 2011 can be accessed on the Company`s website under the Investor Relations section at www.piedmontreit.com.
About Piedmont Office Realty Trust
Piedmont Office Realty Trust, Inc. (NYSE:PDM) is a fully-integrated and self-managed real estate investment trust (REIT) specializing in high-quality, Class A office properties located primarily in the ten largest U.S. office markets, including Chicago, Washington, D.C., New

York, Dallas, Los Angeles and Boston. As of June 30, 2011, Piedmont’s 79 wholly-owned office buildings were comprised of approximately 22 million rentable square feet and were 86.5% leased. The Company is headquartered in Atlanta, GA with local management offices in each of its major markets. Investment-grade rated by Standard & Poor’s and Moody’s, Piedmont has maintained a low-leverage strategy while acquiring over $5.8 billion in properties since 1998. For more information, see http://www.piedmontreit.com.
 
Forward Looking Statements
Certain statements contained in this press release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company intends for all such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, as applicable. Such information is subject to certain risks and uncertainties, as well as known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of the Company`s performance in future periods. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “continue” or similar words or phrases that are predictions of future events or trends and which do not relate solely to historical matters. Examples of such statements in this press release include the Company`s leasing and transaction momentum and prospects; the Company`s accretive and capital recycling opportunities; the Company`s ability to deploy capital in the coming quarters; the Company’s ability to consummate pending acquisitions and dispositions and the Company`s estimated range of Core FFO and Core FFO per diluted share for the year ending December 31, 2011.
The following are some of the factors that could cause the Company`s actual results and its expectations to differ materially from those described in the Company`s forward-looking statements: the Company`s ability to successfully identify and consummate suitable acquisitions; current adverse market and economic conditions; lease terminations or lease defaults, particularly by one of the Company`s large lead tenants; the impact of competition on the Company`s efforts to renew existing leases or re-let space; changes in the economies and other conditions of the office market in general and of the specific markets in which the Company operates; economic and regulatory changes; additional risks and costs associated with directly managing properties occupied by government tenants; adverse market and economic conditions and related impairments to the Company`s assets, including, but not limited to, receivables, real estate assets and other intangible assets; the success of the Company`s real estate strategies and investment objectives; availability of financing; costs of complying with governmental laws and regulations; uncertainties associated with environmental and other regulatory matters; the Company`s ability to continue to qualify as a REIT under the Internal Revenue Code; the impact of outstanding or potential litigation; and other factors detailed in the Company`s most recent Annual Report on Form 10-K for the period ended December 31, 2010, and other documents the Company files with the Securities and Exchange Commission.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company cannot guarantee the accuracy of any such forward-looking statements contained in this press release, and the Company does not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Research Analysts Contact:
Eddie Guilbert
770-418-8592 
research.analysts@piedmontreit.com
Investor Relations Firm Contact:
ICR Inc.
Nikki Sacks
203-682-8263 
Nikki.Sacks@icrinc.com
 
Transfer Agent Services Contact:
The Bank of New York Mellon
866-354-3485 
investor.services@piedmontreit.com

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

 
 	 	 	 	 	 	 	 	 	
 	  	June 30, 2011	 	 	December 31, 2010	 	
 	 	 	
Assets:	  	 	 	 	 	 	 	 	
Real estate assets, at cost:	  	 	 	 	 	 	 	 	
Land	  	$	689,611	  	 	$	643,302	  	
Buildings and improvements	  	 	3,876,346	  	 	 	3,671,749	  	
Buildings and improvements, accumulated depreciation	  	 	(789,718	) 	 	 	(741,723	) 	
Intangible lease asset	  	 	225,182	  	 	 	219,770	  	
Intangible lease asset, accumulated amortization	  	 	(136,180	) 	 	 	(145,742	) 	
Construction in progress	  	 	15,298	  	 	 	11,152	  	
Real estate assets held for sale	  	 	22,263	  	 	 	21,353	  	
Real estate assets held for sale, accumulated depreciation and amortization	  	 	(3,163	) 	 	 	(3,033	) 	

Total real estate assets	  	 	3,899,639	  	 	 	3,676,828	  	
Investment in unconsolidated joint ventures	  	 	41,271	  	 	 	42,018	  	
Cash and cash equivalents	  	 	21,404	  	 	 	56,718	  	
Tenant receivables, net of allowance for doubtful accounts	  	 	31,143	  	 	 	28,849	  	
Straight line rent receivable	  	 	107,308	  	 	 	105,081	  	
Notes receivable	  	 	-  	  	 	 	61,144	  	
Due from unconsolidated joint ventures	  	 	537	  	 	 	1,158	  	
Restricted cash and escrows	  	 	32,309	  	 	 	12,475	  	
Prepaid expenses and other assets	  	 	14,577	  	 	 	11,249	  	
Goodwill	  	 	180,097	  	 	 	180,097	  	
Deferred financing costs, less accumulated amortization	  	 	4,396	  	 	 	5,306	  	
Deferred lease costs, less accumulated amortization	  	 	227,073	  	 	 	192,168	  	
Other assets held for sale	  	 	452	  	 	 	389	  	
 	  	 	 	 	 	 	 	 	
Total assets	  	$	4,560,206	  	 	$	4,373,480	  	

Liabilities:	  	 	 	 	 	 	 	 	
Line of credit and notes payable (net of discounts of $471 and $0 as of June 30, 2011 and December 31, 2010, respectively)	  	$	1,637,054	  	 	$	1,402,525	  	
Accounts payable, accrued expenses, and accrued capital expenditures	  	 	126,111	  	 	 	112,648	  	
Deferred income	  	 	32,161	  	 	 	35,203	  	
Intangible lease liabilities, less accumulated amortization	  	 	43,657	  	 	 	48,959	  	
Interest rate swap	  	 	-	  	 	 	691	  	
 	  	 	 	 	 	 	 	 	
Total liabilities	  	 	1,838,983	  	 	 	1,600,026	  	
 	 	 	
Stockholders’ equity :	  	 	 	 	 	 	 	 	
Common stock	  	 	1,728	  	 	 	1,727	  	
Additional paid in capital	  	 	3,662,522	  	 	 	3,661,308	  	
Cumulative distributions in excess of earnings	  	 	(948,956	) 	 	 	(895,122	) 	
Other comprehensive loss	  	 	(44	) 	 	 	(691	) 	
 	  	 	 	 	 	 	 	 	
Piedmont stockholders’ equity	  	 	2,715,250	  	 	 	2,767,222	  	
Non-controlling interest	  	 	5,973	  	 	 	6,232	  	
 	  	 	 	 	 	 	 	 	
Total stockholders’ equity	  	 	2,721,223	  	 	 	2,773,454	  	
 	  	 	 	 	 	 	 	 	
Total liabilities, redeemable common stock and stockholders’ equity	  	$	4,560,206	  	 	$	4,373,480	  	

Net Debt (Gross debt less cash and cash equivalents and restricted cash and escrows)	  	$	1,583,812	  	 	$	1,333,332	  	
Total Gross Assets (1)	  	$	5,489,267	  	 	$	5,263,978	  	
 	 	 	
Number of shares of common stock outstanding at end of period	  	 	172,827	  	 	 	172,658	  	

(1) Total assets exclusive of accumulated depreciation and amortization related to real estate assets.	

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	 	Six Months Ended	 	
 	  	6/30/2011	 	 	6/30/2010	 	 	6/30/2011	 	 	6/30/2010	 	
 	 	 	 	 	
Revenues:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental income	  	$	112,834	  	 	$	110,049	  	 	$	 222,291	  	 	$	 219,886	  	
Tenant reimbursements	  	 	36,000	  	 	 	33,034	  	 	 	68,344	  	 	 	67,811	  	
Property management fee revenue	  	 	363	  	 	 	705	  	 	 	1,193	  	 	 	1,458	  	
Other rental income	  	 	1,347	  	 	 	479	  	 	 	4,751	  	 	 	975	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	150,544	  	 	 	144,267	  	 	 	296,579	  	 	 	290,130	  	
 	 	 	 	 	
Operating expenses:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property operating costs	  	 	58,740	  	 	 	55,288	  	 	 	113,387	  	 	 	110,414	  	
Depreciation	  	 	27,723	  	 	 	25,369	  	 	 	54,639	  	 	 	50,849	  	
Amortization	  	 	15,821	  	 	 	10,913	  	 	 	27,872	  	 	 	22,246	  	
General and administrative	  	 	7,697	  	 	 	7,948	  	 	 	14,522	  	 	 	14,568	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses	  	 	109,981	  	 	 	99,518	  	 	 	210,420	  	 	 	198,077	  	

Real estate operating income	  	 	40,563	  	 	 	44,749	  	 	 	86,159	  	 	 	92,053	  	
 	 	 	 	 	
Other income (expense):	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest expense	  	 	(19,313	) 	 	 	(18,933	) 	 	 	(36,487	) 	 	 	(38,024	) 	
Interest and other income	  	 	(253	) 	 	 	1,036	  	 	 	3,206	  	 	 	2,005	  	
Equity in income of unconsolidated joint ventures	  	 	338	  	 	 	647	  	 	 	547	  	 	 	1,384	  	
Gain (loss) on consolidation of a variable interest entity	  	 	(388	) 	 	 	-  	  	 	 	1,532	  	 	 	-  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total other income (expense)	  	 	(19,616)	  	 	 	(17,250)	  	 	 	(31,202)	  	 	 	(34,635)	  	

Income from continuing operations	  	 	20,947	  	 	 	27,499	  	 	 	54,957	  	 	 	57,418	  	
 	 	 	 	 	
Discontinued operations:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	
Operating income	  	 	201	  	 	 	1,849	  	 	 	280	  	 	 	3,516	  	
 	 	 	 	 	
Impairment loss	  	 	-  	  	 	 	(9,587	) 	 	 	-  	  	 	 	(9,587	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income / (loss) from discontinued operations	  	 	201	  	 	 	(7,738	) 	 	 	280	  	 	 	(6,071	) 	

Net income	  	 	21,148	  	 	 	19,761	  	 	 	55,237	  	 	 	51,347	  	
 	 	 	 	 	
Less: Net income attributable to noncontrolling interest	  	 	(121	) 	 	 	(125	) 	 	 	(243	) 	 	 	(251	) 	

Net income attributable to Piedmont	  	$	21,027	  	 	$	19,636	  	 	$	54,994	  	 	$	51,096	  	

Weighted average common shares outstanding—diluted	  	 	172,986	  	 	 	172,718	  	 	 	172,908	  	 	 	168,912	  	
 	 	 	 	 	
Net income per share available to common stockholders—diluted	  	$	0.12	  	 	$	0.11	  	 	$	0.32	  	 	$	0.30	  	

 

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	 	Six Months Ended	 	
 	  	6/30/2011	 	 	6/30/2010	 	 	6/30/2011	 	 	6/30/2010	 	
 	 	 	 	 	
Net income attributable to Piedmont	  	$	21,027	  	 	$	19,636	  	 	$	54,994	  	 	$	51,096	  	
 	 	 	 	 	
Depreciation (1) (2)	  	 	27,879	  	 	 	25,872	  	 	 	55,033	  	 	 	52,122	  	
Amortization (1)	  	 	15,878	  	 	 	11,104	  	 	 	27,984	  	 	 	22,592	  	
(Gain) loss on sale of properties (1)	  	 	(45	) 	 	 	-	  	 	 	(45	) 	 	 	-	  	
(Gain) loss on consolidation of variable interest entity	  	 	388	  	 	 	-	  	 	 	(1,532	) 	 	 	-	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Funds from operations	  	 	65,127	  	 	 	56,612	  	 	 	136,434	  	 	 	125,810	  	
 	 	 	 	 	
Acquisition costs	  	 	716	  	 	 	48	  	 	 	690	  	 	 	48	  	
Impairment loss on real estate assets (1)	  	 	-	  	 	 	9,587	  	 	 	-	  	 	 	9,587	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core funds from operations	  	 	65,843	  	 	 	66,247	  	 	 	137,124	  	 	 	135,445	  	
 	 	 	 	 	
Depreciation of non real estate assets	  	 	168	  	 	 	178	  	 	 	338	  	 	 	357	  	
Stock-based and other non-cash compensation expense	  	 	896	  	 	 	711	  	 	 	1,864	  	 	 	1,364	  	
Deferred financing cost amortization	  	 	1,060	  	 	 	696	  	 	 	1,667	  	 	 	1,393	  	
Amortization of fair market adjustments on notes payable	  	 	942	  	 	 	-	  	 	 	942	  	 	 	-	  	
Straight-line effects of lease revenue (1)	  	 	(2,596	) 	 	 	(784	) 	 	 	(359	) 	 	 	289	  	
Amortization of lease-related intangibles (1)	  	 	(1,670	) 	 	 	(1,525	) 	 	 	(3,033	) 	 	 	(2,952	) 	
Income from amortization of discount on purchase of mezzanine loans	  	 	 	 	 	 	(694	) 	 	 	(484	) 	 	 	(1,362	) 	
Acquisition costs	  	 	(716	) 	 	 	(48	) 	 	 	(690	) 	 	 	(48	) 	
Non-incremental capital expenditures(3)	  	 	(16,908	) 	 	 	(8,969	) 	 	 	(38,377	) 	 	 	(18,383	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted funds from operations	  	$	47,019	  	 	$	55,812	  	 	$	98,992	  	 	$	116,103	  	

Weighted average common shares outstanding - diluted	  	 	172,986	  	 	 	172,718	  	 	 	172,908	  	 	 	168,912	  	
 	 	 	 	 	
Funds from operations per share (diluted)	  	$	0.38	  	 	$	0.33	  	 	$	0.79	  	 	$	0.74	  	
Core funds from operations per share (diluted)	  	$	0.38	  	 	$	0.38	  	 	$	0.79	  	 	$	0.80	  	
Adjusted funds from operations per share (diluted)	  	$	0.27	  	 	$	0.32	  	 	$	0.57	  	 	$	0.69	  	

(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	 	 	Six Months Ended	 	
 	  	6/30/2011	 	 	6/30/2010	 	 	6/30/2011	 	 	6/30/2010	 	
 	 	 	 	 	
Net income attributable to Piedmont	  	$	21,027	  	 	$	19,636	  	 	$	54,994	  	 	$	51,096	  	
 	 	 	 	 	
Net income attributable to non-controlling interest	  	 	121	  	 	 	125	  	 	 	243	  	 	 	251	  	
Interest Expense	  	 	19,313	  	 	 	18,933	  	 	 	36,487	  	 	 	38,024	  	
Depreciation(1)	  	 	28,047	  	 	 	26,050	  	 	 	55,371	  	 	 	52,478	  	
Amortization(1)	  	 	15,878	  	 	 	11,104	  	 	 	27,984	  	 	 	22,592	  	
Impairment loss(1)	  	 	-	  	 	 	9,587	  	 	 	-	  	 	 	9,587	  	
(Gain) loss on sale of properties (1)	  	 	(45	) 	 	 	-	  	 	 	(45	) 	 	 	-	  	
(Gain) loss on consolidation of variable interest entity	  	 	388	  	 	 	-	  	 	 	(1,532	) 	 	 	-	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core EBITDA*	  	 	84,729	  	 	 	85,435	  	 	 	173,502	  	 	 	174,028	  	
 	 	 	 	 	
General & administrative expenses(1)	  	 	7,724	  	 	 	7,993	  	 	 	14,624	  	 	 	14,689	  	
Management fee revenue	  	 	(363	) 	 	 	(705	) 	 	 	(1,193	) 	 	 	(1,458	) 	
Interest and other income	  	 	253	  	 	 	(1,036	) 	 	 	(3,206	) 	 	 	(2,005	) 	
Lease termination income	  	 	(1,347	) 	 	 	(479	) 	 	 	(4,751	) 	 	 	(975	) 	
Lease termination expense-straight line rent & acquisition intangibles write-offs	  	 	43	  	 	 	679	  	 	 	479	  	 	 	746	  	
Straight line rent adjustment(1)	  	 	(2,639	) 	 	 	(1,463	) 	 	 	(667	) 	 	 	(456	) 	
Net effect of amortization of below-market in-place lease intangibles (1)	  	 	(1,670	) 	 	 	(1,525	) 	 	 	(3,204	) 	 	 	(2,952	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core net operating income (cash basis)*	  	 	86,730	  	 	 	88,899	  	 	 	175,584	  	 	 	181,617	  	
 	 	 	 	 	
Acquisitions	  	 	(3,415	) 	 	 	-	  	 	 	(3,061	) 	 	 	-	  	
Dispositions	  	 	-	  	 	 	(1,683	) 	 	 	1	  	 	 	(3,364	) 	
Industrial properties	  	 	(242	) 	 	 	(91	) 	 	 	(482	) 	 	 	(364	) 	
Unconsolidated joint ventures	  	 	(696	) 	 	 	(1,186	) 	 	 	(1,354	) 	 	 	(2,453	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Same Store NOI*	  	$	82,377	  	 	$	85,939	  	 	$	170,688	  	 	$	175,436	  	

Change period over period in same store NOI	  	 	-4.1	% 	 	 	 	 	 	 	-2.7	% 	 	 	 	 	
 	 	 	 	 	
Fixed Charge Coverage Ratio (Core EBITDA/ Interest Expense) (2)	  	 	4.4	  	 	 	 	 	 	 	4.8	  	 	 	 	 	
Annualized Core EBITDA (Core EBITDA x 4)	  	$	338,916	  	 	 	 	 	 	$	347,004	  	 	 	 	 	

(1)Includes amounts attributable to wholly-owned properties, including discontinued operations, and our proportionate of amounts attributable to unconsolidated joint ventures.
(2) Piedmont had no capitalized interest, principal amortization or preferred dividends for any of the periods presented.
*Definitions
Core EBITDA: 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 and unconsolidated joint venture assets. We present this measure on a cash basis, which eliminates the effects of straight lined rents and fair value lease revenue. We believe Same Store NOI is an important measure of comparison of our stabilized properties’ operating performance. Other REITs may calculate Same Store NOI differently and our calculation should not be compared to that of other REITs.

Exhibit 99.2

 

Quarterly Supplemental Information
June 30, 2011

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

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

Piedmont Office Realty Trust, Inc.
Quarterly Supplemental Information
Index

 
 	 	 	
 	  	Page	
 	 	
Introduction	  	 	
Corporate Data	  	3	
Investor Information	  	4	
Financial Highlights	  	5-8	
Key Performance Indicators	  	9	
 	 	
Financials	  	 	
Balance Sheet	  	10	
Income Statements	  	11-12	
Funds From Operations / Adjusted Funds From Operations	  	13	
Same Store Analysis	  	14-15	
Capitalization Analysis	  	16	
Debt Summary	  	17	
Debt Detail	  	18	
Debt Analysis	  	19	
 	 	
Operational & Portfolio Information—Office Investments	  	 	
Tenant Diversification	  	20	
Tenant Credit Rating & Lease Distribution Information	  	21	
Leased Percentage Information	  	22	
Rental Rate Roll Up / Roll Down Analysis	  	23	
Lease Expiration Schedule	  	24	
Annual Lease Expirations	  	25	
Capital Expenditures & Commitments	  	26	
Contractual Tenant Improvements & Leasing Commissions	  	27	
Geographic Diversification	  	28	
Industry Diversification	  	29	
Property Investment Activity	  	30	
Value-Add Activity	  	31	
 	 	
Other Investments	  	 	
Other Investments Detail	  	32	
 	 	
Supporting Information	  	 	
Definitions	  	33-34	
Research Coverage	  	35	
Non-GAAP Reconciliations & Other Detail	  	36-39	
Risks, Uncertainties and Limitations	  	40	

Please refer to page 40 for a discussion of important risks related to the business of Piedmont Office Realty Trust, as well as an investment in its securities, including risks that could cause actual results and events to differ materially from results and events referred to in the forward-looking information. Considering these risks, uncertainties, assumptions, and limitations, the forward-looking events contained in this supplemental reporting package might not occur.
Certain prior period amounts have been reclassified to conform to the current period financial statement presentation. In addition, many of the schedules herein contain rounding to the nearest thousands or millions and, therefore, the schedules may not total due to this rounding convention.

Piedmont Office Realty Trust, Inc.
Corporate Data

Piedmont Office Realty Trust, Inc. ("Piedmont" or the "Company") (NYSE: PDM) is a fully-integrated and self-managed real estate investment trust (“REIT”) specializing in the acquisition, ownership, management, development and disposition of primarily high-quality Class A office buildings located predominantly in large U.S. office markets and leased principally to high-credit-quality tenants. Since its first acquisition in 1998, the Company has acquired $5.8 billion of office and industrial properties (inclusive of joint ventures) through June 30, 2011. Rated as an investment-grade company by Standard & Poor’s and Moody’s, Piedmont has maintained a low-leverage strategy while acquiring its properties. Approximately 83% of our Annualized Lease Revenue ("ALR") (1)  is derived from our office properties located within the ten largest U.S. office markets, including Chicago, Washington, D.C., the New York metropolitan area, Boston and greater Los Angeles.
This data supplements the information provided in our reports filed with the Securities and Exchange Commission and should be reviewed in conjunction with such filings.

 	  	As of
    June 30, 2011    	 	  	As of
    December 31, 2010    	 	 	

Number of properties (2)	  	 	79	  	  	 	75	  	 	
 	 	 	 	
Rentable square footage (in thousands) (2)	  	 	21,817	  	  	 	20,408	  	 	
 	 	 	 	
Percent leased (3)	  	 	86.5%	  	  	 	89.2%	  	 	
 	 	 	 	
Percent leased (not including value-add properties) (4)	  	 	89.0%	  	  	 	89.9%	  	 	
 	 	 	 	
Capitalization (in thousands):	  	 	 	 	  	 	 	 	 	
 	 	 	 	
Total gross debt - principal amount outstanding	  	 	$1,637,525	  	  	 	$1,402,525	  	 	
 	 	 	 	
Equity market capitalization	  	 	$3,523,937	  	  	 	$3,477,342	  	 	
 	 	 	 	
Total market capitalization	  	 	$5,161,462	  	  	 	$4,879,867	  	 	
 	 	 	 	
Total gross debt / Total market capitalization	  	 	31.7%	  	  	 	28.7%	  	 	
 	 	 	 	
Common stock data	  	 	 	 	  	 	 	 	 	
 	 	 	 	
High closing price during quarter	  	 	$20.89	  	  	 	$20.31	  	 	
 	 	 	 	
Low closing price during quarter	  	 	$18.88	  	  	 	$18.25	  	 	
 	 	 	 	
Closing price of common stock at period end	  	 	$20.39	  	  	 	$20.14	  	 	
 	 	 	 	
Weighted average fully diluted shares outstanding (in thousands) (5)	  	 	172,908	  	  	 	170,967	  	 	
 	 	 	 	
Shares of common stock issued and outstanding (in thousands)	  	 	172,827	  	  	 	172,658	  	 	
 	 	 	 	
Rating / outlook	  	 	 	 	  	 	 	 	 	
 	 	 	 	
Standard & Poor's	  	 	BBB/Stable	  	  	 	BBB/Stable	  	 	
 	 	 	 	
Moody's	  	 	Baa2/Stable	  	  	 	Baa2/Stable	  	 	
Employees (6)	  	 	111	  	  	 	110	  	 	

(1) 	The definition for Annualized Lease Revenue can be found on page 33.	
(2) 	As of June 30, 2011, our office portfolio consisted of 79 properties (exclusive of our equity interests in six properties owned through unconsolidated joint ventures and our two industrial properties). During the second quarter of 2011, we acquired The Dupree, a 138,000 square foot building located in Atlanta, GA, and The Medici, a 152,000 square foot building located in Atlanta, GA. Subsequent to quarter end, we sold Eastpointe Corporate Center, a 156,000 square foot building located in Issaquah, WA.	
(3) 	Calculated as leased square footage on June 30, 2011 plus square footage associated with executed new leases for currently vacant spaces divided by total rentable square footage, expressed as a percentage. This measure is presented for our 79 office properties and excludes industrial and unconsolidated joint venture properties. Please refer to page 22 for additional analyses regarding Piedmont's leased percentage.	
(4) 	Please refer to page 31 for information regarding value-add properties.	
(5) 	Weighted average fully diluted shares outstanding are presented on a year-to-date basis for each period.	
(6) 	During the first quarter of 2011, the company hired a regional manager for its New York, NY office. The opening of this office is the reason for the increase in number of employees.	

3

Piedmont Office Realty Trust, Inc.
Investor Information

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

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

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

Piedmont Office Realty Trust, Inc.
Financial Highlights
As of June 30, 2011

On January 22, 2010, we filed an amendment to our charter to effect a recapitalization of our common stock as described further in our Securities and Exchange Commission ("SEC") filings. The recapitalization had the effect of a one-for-three reverse stock split. All prior period per share data has been restated to give net effect to this one-for-three reverse stock split.

Financial Results (1)	  	 	
 
 	-	Funds from operations (FFO) for the quarter ended June 30, 2011 was $65.1M, or $0.38 per share (diluted), compared to $56.6M, or $0.33 per share (diluted), for the same quarter in 2010. FFO for the six months ended June 30, 2011 was $136.4M, or $0.79 per share (diluted), compared to $125.8M, or $0.74 per share (diluted), for the same period in 2010. The increase in FFO for the three months and the six months ended June 30, 2011 as compared to the same periods in 2010 was primarily due to an impairment charge recognized in 2010 for one wholly-owned asset amounting to approximately $9.6 million.	
 
 	-	Core funds from operations (Core FFO) for the quarter ended June 30, 2011 was $65.8M, or $0.38 per share (diluted), compared to $66.2M, or $0.38 per share (diluted), for the same quarter in 2010. Core FFO for the six months ended June 30, 2011 was $137.1M, or $0.79 per share (diluted), compared to $135.4M, or $0.80 per share (diluted), for the same period in 2010. While acquisitions completed during the past year did lead to an increase in operating revenue and expenses, reduced rental income from the same store portfolio due to reduced leased percentage and rental rate reductions offset the favorable impact of such acquisitions. The decrease in per share amount for Core FFO for the six months ended June 30, 2011 as compared to the same period in 2010 was primarily due to the dilutive effect of the 13.8 million shares of common stock issued when the Company listed on the NYSE in February 2010.	
 
 	-	Adjusted funds from operations (AFFO) for the quarter ended June 30, 2011 was $47.0M, or $0.27 per share (diluted), compared to $55.8M, or $0.32 per share (diluted), for the same quarter in 2010. AFFO for the six months ended June 30, 2011 was $99.0M, or $0.57 per share (diluted), compared to $116.1M, or $0.69 per share (diluted), for the same period in 2010. The decrease in AFFO for the six months ended June 30, 2011 as compared to the same period in 2010 was primarily due to increased capital expenditures in 2011 associated with new leasing activity, including $5.3 million in leasing commissions related to the NASA lease renewal at Two Independence Square and $4.2 million in tenant improvements for Leo Burnett at 35 West Wacker Drive. The per share amount of AFFO for the six months ended June 30, 2011 was also impacted by the dilutive effect of the 13.8 million shares of common stock issued when the Company listed on the NYSE in February 2010.	
 
 	-	During the quarter ended June 30, 2011, the Company paid to shareholders a quarterly dividend in the amount of $0.315 per share for its common stock. The Company’s dividend payout percentage for the six months ended June 30, 2011 was 79.4% of Core FFO and 109.9% of AFFO.	

Operations	  	 	
 	-	On a same store square footage leased basis, our portfolio was 88.9% leased as of June 30, 2011 as compared to 89.5% leased as of June 30, 2010. On a square footage basis, our office portfolio was 86.5% leased as of June 30, 2011, as compared to 89.2% as of December 31, 2010 and 89.8% as of June 30, 2010. The decrease in the office portfolio leased percentage during the last year is primarily related to the addition to the portfolio of several properties with existing vacancies, including 500 West Monroe Street in Chicago, IL, 1200 Enclave Parkway in Houston, TX, The Medici in Atlanta, GA, and Suwanee Gateway One in Suwanee, GA. Removing these value-add properties from the total portfolio statistics results in an 89.0% leased rate for our stabilized assets. Please refer to page 22 for additional information.	
 
 	-	The weighted average remaining lease term of our portfolio was 6.3 years(2) as of June 30, 2011 as compared to 5.8 years at December 31, 2010.	
 
 	-	During the three months ended June 30, 2011, the Company completed 1,179,000 square feet of leasing at our 79 consolidated office properties. We executed renewal leases for 741,000 square feet and new tenant leases for 439,000 square feet, bringing the year-to-date total office leasing activity to 2,022,000 square feet, with an average committed capital cost of $4.85 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 six months ended June 30, 2011 was $4.56 and average committed capital cost per square foot per year of lease term for new leases during the same time period was $5.45. We did not execute any new leases during the quarter for our two industrial properties.	
 
 	-	During the three months ended June 30, 2011, we retained(3) tenants for 80% of the square footage associated with expiring leases. During the six months ended June 30, 2011, we retained tenants for 76% of the square footage associated with expiring leases. This result compares to a 72% retention rate for the year ended December 31, 2010.	

(1) FFO, Core FFO and AFFO are supplemental non-GAAP financial measures. See pages 33-34 for definitions of non-GAAP financial measures. See pages 13 and 37 for reconciliations of FFO, Core FFO and AFFO to Net Income.
(2) Remaining lease term (after taking into account leases for vacant spaces which had been executed but not commenced as of June 30, 2011) is weighted based on Annualized Lease Revenue, as defined on page 33.
(3) Piedmont defines a retained tenant to include an existing tenant/occupant signing a lease for the premises it currently occupies or a tenant whose occupancy of a space is structured in a way to eliminate downtime for the space.
 
5

Piedmont Office Realty Trust, Inc.
Financial Highlights
As of June 30, 2011

 
 	-	During the three months ended June 30, 2011, 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	
United States of America
(Comptroller of the Currency)	  	One Independence Square	  	Washington, D.C.	  	333,815	  	2013	  	Renewal	
Chrysler Group, LLC	  	1075 West Entrance Drive	  	Auburn Hills, MI	  	210,000	  	2019	  	New	
Jones Lang LaSalle, Inc.	  	Aon Center	  	Chicago, IL	  	164,375	  	2017	  	Renewal	
Nike, Inc.	  	Rogue	  	Beaverton, OR	  	105,272	  	2017	  	Renewal	
AmeriCredit Financial Services, Inc.	  	Chandler Forum	  	Chandler, AZ	  	62,521	  	2018	  	Renewal	
Convergys Corporation	  	5601 Hiatus Road	  	Tamarac, FL	  	50,000	  	2016	  	Renewal	
State Farm Mutual Automobile Insurance Company	  	5601 Hiatus Road	  	Tamarac, FL	  	50,000	  	2017	  	New	
Grand Canyon Education, Inc.	  	Desert Canyon 300	  	Phoenix, AZ	  	45,540	  	2019	  	New	
Watkins Meegan, LLC	  	Piedmont Pointe II	  	Bethesda, MD	  	35,240	  	2025	  	New	
Sempris, LLC	  	Crescent Ridge II	  	Minnetonka, MN	  	21,858	  	2021	  	New	

Leasing Update	  	 	
 
 	-	As of March 31, 2011, a total of seven leases were scheduled to expire either during the remainder of 2011 or in 2012 that each contributed greater than 1% of Annualized Lease Revenue. Information regarding the leasing status of the spaces associated with those leases is presented below.	

Tenant Name	  	Property	  	Property Location	  	Square
Footage  (1)	  	Percentage of Current
Quarter Annualized
Lease Revenue (%)	 	Expiration (2)	  	Current Leasing Status	
United States of America (Comptroller of the Currency)	  	One Independence
Square	  	Washington, D.C.	  	333,815	  	3.0%	 	Q2 2013	  	A 2-year lease was signed with the tenant during the quarter for 333,815 SF, an approximate 3% increase in square footage leased due to a BOMA space remeasurement.	
 	 	 	 	 	 	 	
Zurich American Insurance Company	  	Windy Point II	  	Schaumburg, IL	  	300,034	  	1.8%	 	Q3 2011	  	The space has been substantially sublet by the tenant. The Company has leased 16% of the space on a short-term, direct basis to two sublessees and it is actively marketing the entire space for lease.	
 	 	 	 	 	 	 	
Kirkland & Ellis	  	Aon Center	  	Chicago, IL	  	331,887	  	1.7%	 	Q4 2011	  	Kirkland & Ellis is vacating. KPMG has leased 218,123 SF (beginning in August 2012), all but 3,000 SF of which is space currently leased to Kirkland & Ellis.	
 	 	 	 	 	 	 	
Marsh USA	  	500 West Monroe
Street	  	Chicago, IL	  	173,290	  	1.2%	 	Q4 2011	  	The Company is actively marketing the space for lease. The tenant will be vacating at lease expiration. See GE below.	
 	 	 	 	 	 	 	
Sanofi-aventis US	  	200 Bridgewater
Crossing	  	Bridgewater, NJ	  	297,379	  	2.0%	 	Q1 2012	  	The Company is actively marketing the space for lease. The tenant will be vacating at lease expiration.	
 	 	 	 	 	 	 	
United States of America (National Park Service)	  	1201 Eye Street	  	Washington, D.C.	  	219,750	  	1.7%	 	Q3 2012	  	Preliminary discussions with the tenant have commenced.	
 	 	 	 	 	 	 	
GE	  	500 West Monroe
Street	  	Chicago, IL	  	311,387	  	1.7%	 	Q4 2012	  	The Company is in discussions with the tenant for a long-term lease renewal and expansion.	

(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 June 30, 2011

 
 	 	 	
Financing and Capital Activity        	  	 	
 
 	-	As of June 30, 2011, our ratio of gross debt to total market capitalization was 31.7%; our ratio of gross debt to gross real estate assets was 33.9%; and our ratio of gross debt to total gross assets was 29.8%. These debt ratios are based on total principal amount outstanding for our various loans.	
 
 	-	On April 29, 2011, Piedmont purchased The Dupree, a 138,000 square foot building located in Atlanta, GA, for approximately $20.5 million, or $148 per square foot. The building is well-located along the northern arc of I-285, a major bypass expressway encircling Atlanta, with close proximity to GA-400, a major state highway connecting downtown Atlanta with the city's northern suburbs, as well as executive housing. The building was constructed in 1997, is approximately 83% leased, and is located near Piedmont's Glenridge Highlands II building. Given the ease of access to the building, Piedmont's intimate knowledge of the market, the low cost basis, and the long-term nature of the existing leases, Piedmont believes the transaction provides a strong risk-adjusted return for its shareholders.	
 
 	-	On June 7, 2011, Piedmont purchased The Medici, a 152,000 square foot, six-story, Class A office building located in Atlanta, GA, for approximately $13.2 million, or $87 per square foot. Piedmont acquired the property, which is located in the Piazza at Paces high-end mixed-use development in the Buckhead submarket, at a foreclosure auction. The building was constructed in 2008 and it is currently 22% leased. The building is well-located near the intersection of Interstate 75 and West Paces Ferry Road on the western side of Atlanta's desirable Buckhead submarket, within close proximity to executive housing. The desirable location, the low cost basis, and the high quality construction should afford Piedmont a strong competitive advantage over other landlords to secure tenants for the building at attractive rents relative to the Company's cost basis.	
 
 	-	On April 21, 2011, the Company entered into a binding contract to sell Eastpointe Corporate Center, a 156,000 square foot, five-story building located in Issaquah, WA, a suburb of Seattle, to an owner/occupant for approximately $32 million, or $205 per square foot. The transaction closed subsequent to quarter end on July 1, 2011. Piedmont recorded a gain upon the sale of the property. The building was approximately 43% leased as of the end of the second quarter of 2011 and became 19% leased after the end of the second quarter of 2011 due to the expiration of an additional lease. Through the sale, Piedmont was able to mitigate the leasing risk associated with this building and further its strategic objective of focusing on select markets while simultaneously securing an attractive sale price for the property. Piedmont reclassified Eastpointe Corporate Center from real estate assets held-for-use to real estate assets held-for-sale as of April 21, 2011. The results from operations for the asset are presented in discontinued operations as of the second quarter of 2011.	
 
 	-	On May 4, 2011, the board of directors of Piedmont declared dividends for the second quarter of 2011 in the amount of $0.315 per common share outstanding to stockholders of record as of the close of business on June 1, 2011. The dividends were paid on June 22, 2011.	
 
 	-	On June 2, 2011, Piedmont, along with its joint venture partners, sold 360 Interlocken Boulevard, a 52,000 square foot building in Broomfield, CO, for $9.15 million. Piedmont's ownership in the property was approximately 4%. Piedmont recognized a $45,000 gain on the sale of its interest in the asset.	
 
 	-	Piedmont repaid its $250 million term loan on its stated maturity date of June 28, 2011. Funds to repay the loan were obtained through the Company's $500 million line of credit. There was $300 million in outstanding draws on the line of credit as of June 30, 2011.	
 
 	-	Three loans, the two loans totaling $185 million in face value associated with 500 West Monroe Street and the $500 million line of credit facility, mature during the third quarter of 2011. However, all three loans have one-year extension options remaining. Piedmont is in the process of securing the one year extension of the maturity date for each of these loans.	
 
 	-	On June 30, 2011, the Board of Directors approved an amendment to our charter that reclassified all authorized but unissued shares of Class B Common Stock as Class A Common Stock. Further, after such reclassification, the designation of Class A Common Stock was changed to Common Stock.	

7

 	 	 	
Subsequent Events	  	 	
 
 	-	On July 1, 2011, Piedmont completed the sale of Eastpointe Corporate Center located in Issaquah, WA. For additional details on the sale, please review the information presented under Financing and Capital Activity above.	
 
 	-	On August 1, 2011, Piedmont entered into an agreement to sell its 96.5% ownership interest in 35 West Wacker Drive, a 1,118,000 square foot office building in Chicago, IL. The agreed upon gross sale price values the building at $401.0 million, or $359 per square foot. The sale is contingent upon satisfactory completion of due diligence and lender approvals and is anticipated to close by the end of 2011.	
 
 	-	On August 9, 2011, the board of directors of Piedmont declared dividends for the third quarter of 2011 in the amount of $0.315 per common share outstanding to stockholders of record as of the close of business on September 1, 2011. The dividends are expected to be paid on September 22, 2011.	

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

 	 	 	
 	  	Low      High	
Core Funds from Operations	  	$256 - $269 million	
Core Funds from Operations per diluted share	  	$148  - $1.56	
These estimates reflect management’s view of current market conditions and incorporate certain economic and operational assumptions and projections. These estimates exclude future acquisitions and dispositions which could result in a change in the Company’s 2011 outlook and guidance when they are consummated. Actual results could differ from these estimates. Note that individual quarters may fluctuate on both a cash basis and an accrual basis due to the timing of repairs and maintenance, capital expenditures, capital markets activities and one-time revenue or expense events. In addition, the Company’s guidance is based on information available to management as of the date of this supplemental report.
 
8

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 33-34 and reconciliations are provided on pages 36-38.

 	 	 	  	Three Months Ended	 	
Selected Operating Data	  	6/30/2011	 	  	3/31/2011	 	  	12/31/2010	 	  	9/30/2010	 	  	6/30/2010	 	
 	 	 	 	 	 	 	
 	 	Percent leased (1)	  	 	86.5%	  	  	 	87.3%	  	  	 	89.2%	  	  	 	89.0%	  	  	 	89.8%	  	
 	 	 	 	 	 	 	
 	 	Rental income	  	 	$112,834	  	  	 	$109,457	  	  	 	$110,334	  	  	 	$110,134	  	  	 	$110,049	  	
 	 	 	 	 	 	 	
 	 	Total revenues	  	 	$150,544	  	  	 	$146,035	  	  	 	$149,601	  	  	 	$144,612	  	  	 	$144,267	  	
 	 	 	 	 	 	 	
 	 	Total operating expenses	  	 	$109,981	  	  	 	$100,438	  	  	 	$105,921	  	  	 	$89,987	  	  	 	$99,518	  	
 	 	 	 	 	 	 	
 	 	Real estate operating income	  	 	$40,563	  	  	 	$45,597	  	  	 	$43,680	  	  	 	$54,625	  	  	 	$44,749	  	
 	 	 	 	 	 	 	
 	 	Impairment losses (2)	  	 	$0	  	  	 	$0	  	  	 	$0	  	  	 	$53	  	  	 	$9,587	  	
 	 	 	 	 	 	 	
 	 	Core EBITDA (3)	  	 	$84,729	  	  	 	$88,774	  	  	 	$85,610	  	  	 	$95,612	  	  	 	$85,435	  	
 	 	 	 	 	 	 	
 	 	Core FFO (3)	  	 	$65,843	  	  	 	$71,281	  	  	 	$68,178	  	  	 	$78,229	  	  	 	$66,247	  	
 	 	 	 	 	 	 	
 	 	Core FFO per share—diluted	  	 	$0.38	  	  	 	$0.41	  	  	 	$0.39	  	  	 	$0.45	  	  	 	$0.38	  	
 	 	 	 	 	 	 	
 	 	AFFO (3)	  	 	$47,019	  	  	 	$51,974	  	  	 	$38,086	  	  	 	$61,468	  	  	 	$55,812	  	
 	 	 	 	 	 	 	
 	 	AFFO per share—diluted	  	 	$0.27	  	  	 	$0.30	  	  	 	$0.22	  	  	 	$0.36	  	  	 	$0.32	  	
 	 	 	 	 	 	 	
 	 	Gross dividends	  	 	$54,440	  	  	 	$54,387	  	  	 	$54,388	  	  	 	$54,388	  	  	 	$54,388	  	
 	 	 	 	 	 	 	
 	 	Dividends per share	  	 	$0.315	  	  	 	$0.315	  	  	 	$0.315	  	  	 	$0.315	  	  	 	$0.315	  	
 	 	 	 	 	 	
Selected Balance Sheet Data	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
 	 	 	 	 	 	 	
 	 	Total real estate assets	  	 	$3,899,639	  	  	 	$3,892,087	  	  	 	$3,676,828	  	  	 	$3,689,428	  	  	 	$3,704,757	  	
 	 	 	 	 	 	 	
 	 	Total gross real estate assets	  	 	$4,828,700	  	  	 	$4,804,988	  	  	 	$4,567,326	  	  	 	$4,573,622	  	  	 	$4,560,176	  	
 	 	 	 	 	 	 	
 	 	Total assets	  	 	$4,560,206	  	  	 	$4,563,272	  	  	 	$4,373,480	  	  	 	$4,389,585	  	  	 	$4,405,501	  	
 	 	 	 	 	 	 	
 	 	Net debt (4)	  	 	$1,583,812	  	  	 	$1,529,603	  	  	 	$1,333,332	  	  	 	$1,316,645	  	  	 	$1,312,116	  	
 	 	 	 	 	 	 	
 	 	Total liabilities	  	 	$1,838,983	  	  	 	$1,809,755	  	  	 	$1,600,026	  	  	 	$1,591,653	  	  	 	$1,594,278	  	
 	 	 	 	 	 	
Ratios	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
 	 	 	 	 	 	 	
 	 	Core EBITDA margin (5)	  	 	56.1%	  	  	 	60.6%	  	  	 	56.2%	  	  	 	65.0%	  	  	 	58.2%	  	
 	 	 	 	 	 	 	
 	 	Fixed charge coverage ratio (6) (7)	  	 	4.4 x	  	  	 	5.2 x	  	  	 	4.9 x	  	  	 	5.5 x	  	  	 	4.5 x	  	
 	 	 	 	 	 	 	
 	 	Net debt to core EBITDA (7) (8)	  	 	4.7 x	  	  	 	4.3 x	  	  	 	3.9 x	  	  	 	3.4 x	  	  	 	3.8 x	  	

(1) Please refer to page 22 for additional leased percentage information.
(2) Impairment losses include losses for both wholly-owned and our proportionate share of unconsolidated joint venture assets.
(3) Core EBITDA, Core FFO and AFFO have been adjusted to exclude impairments on real estate assets as shown on pages 36 and 37.
(4) Net debt is calculated as the total principal amount of debt outstanding minus cash and cash equivalents and escrow deposits and restricted cash. As of the first quarter of 2011, net debt includes $185 million of secured debt associated with 500 West Monroe Street which was acquired March 31, 2011.
(5) Core EBITDA margin is calculated as Core EBITDA divided by total revenues (including revenues associated with discontinued operations).
(6) Fixed charge coverage is calculated as Core EBITDA divided by the sum of interest expense, principal amortization, capitalized interest and preferred dividends. We had no capitalized interest, principal amortization or preferred dividends during any of the periods presented.
(7) The change in Piedmont's debt coverage ratios in 2011 as compared to those for the year ended December 31, 2010, is primarily attributable to the increased debt load associated with 500 West Monroe Street, amounting to $185 million, and the interest expense associated therewith.
(8) Core EBITDA is annualized for the purposes of this calculation.
 
9

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

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	  June 30, 2011  	 	 	  March 31, 2011  	 	 	  December 31, 2010  	 	 	  September 30, 2010  	 	 	  June 30, 2010  	 	
Assets:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Real estate, at cost:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Land assets	 	  $	689,611	  	 	  $	683,752	  	 	  $	643,302	  	 	  $	648,524	  	 	  $	647,525	  	
Buildings and improvements	 	 	3,876,346	  	 	 	3,848,236	  	 	 	3,671,749	  	 	 	3,667,306	  	 	 	3,650,209	  	
Buildings and improvements, accumulated depreciation	 	 	(789,718	) 	 	 	(767,007	) 	 	 	(741,723	) 	 	 	(734,517	) 	 	 	(710,286	) 	
Intangible lease asset	 	 	225,182	  	 	 	238,504	  	 	 	219,770	  	 	 	222,952	  	 	 	224,532	  	
Intangible lease asset, accumulated amortization	 	 	(136,180	) 	 	 	(142,754	) 	 	 	(145,742	) 	 	 	(145,139	) 	 	 	(140,804	) 	
Construction in progress	 	 	15,298	  	 	 	13,142	  	 	 	11,152	  	 	 	11,839	  	 	 	14,909	  	
Real estate assets held for sale, gross	 	 	22,263	  	 	 	21,354	  	 	 	21,353	  	 	 	23,001	  	 	 	23,001	  	
Real estate assets held for sale, accumulated depreciation and amortization	 	 	(3,163	) 	 	 	(3,140	) 	 	 	(3,033	) 	 	 	(4,538	) 	 	 	(4,329	) 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total real estate assets	 	 	3,899,639	  	 	 	3,892,087	  	 	 	3,676,828	  	 	 	3,689,428	  	 	 	3,704,757	  	
 	 	 	 	 	 	
Investment in unconsolidated joint ventures	 	 	41,271	  	 	 	41,759	  	 	 	42,018	  	 	 	42,591	  	 	 	43,005	  	
Cash and cash equivalents	 	 	21,404	  	 	 	42,151	  	 	 	56,718	  	 	 	67,539	  	 	 	81,066	  	
Tenant receivables, net of allowance for doubtful accounts	 	 	31,143	  	 	 	29,726	  	 	 	28,849	  	 	 	29,269	  	 	 	30,986	  	
Straight line rent receivable	 	 	107,308	  	 	 	103,694	  	 	 	105,081	  	 	 	100,715	  	 	 	96,836	  	
Notes receivable	 	 	-    	  	 	 	-    	  	 	 	61,144	  	 	 	60,671	  	 	 	60,101	  	
Due from unconsolidated joint ventures	 	 	537	  	 	 	594	  	 	 	1,158	  	 	 	1,085	  	 	 	1,124	  	
Escrow deposits and restricted cash	 	 	32,309	  	 	 	30,771	  	 	 	12,475	  	 	 	18,341	  	 	 	9,343	  	
Prepaid expenses and other assets	 	 	14,577	  	 	 	11,967	  	 	 	11,249	  	 	 	18,461	  	 	 	15,523	  	
Goodwill	 	 	180,097	  	 	 	180,097	  	 	 	180,097	  	 	 	180,097	  	 	 	180,097	  	
Deferred financing costs, less accumulated amortization	 	 	4,396	  	 	 	5,374	  	 	 	5,306	  	 	 	5,878	  	 	 	6,467	  	
Deferred lease costs, less accumulated amortization	 	 	227,073	  	 	 	224,553	  	 	 	192,168	  	 	 	175,140	  	 	 	175,930	  	
Other assets held for sale	 	 	452	  	 	 	499	  	 	 	389	  	 	 	370	  	 	 	266	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total assets	 	  $	4,560,206	  	 	  $	4,563,272	  	 	  $	4,373,480	  	 	  $	4,389,585	  	 	  $	4,405,501	  	

Liabilities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Line of credit and notes payable	 	  $	1,637,054	  	 	  $	1,601,112	  	 	  $	1,402,525	  	 	  $	1,402,525	  	 	  $	1,402,525	  	
Accounts payable, accrued expenses, and accrued capital expenditures	 	 	126,111	  	 	 	122,769	  	 	 	112,648	  	 	 	102,411	  	 	 	102,365	  	
Deferred income	 	 	32,161	  	 	 	38,990	  	 	 	35,203	  	 	 	33,882	  	 	 	33,916	  	
Intangible lease liabilities, less accumulated amortization	 	 	43,657	  	 	 	46,517	  	 	 	48,959	  	 	 	51,807	  	 	 	54,730	  	
Interest rate swap	 	 	-    	  	 	 	367	  	 	 	691	  	 	 	1,028	  	 	 	742	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities	 	 	1,838,983	  	 	 	1,809,755	  	 	 	1,600,026	  	 	 	1,591,653	  	 	 	1,594,278	  	
 	 	 	 	 	 	
Stockholders' equity (1) :	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Common stock	 	 	1,728	  	 	 	1,727	  	 	 	1,727	  	 	 	1,727	  	 	 	1,727	  	
Additional paid in capital	 	 	3,662,522	  	 	 	3,661,570	  	 	 	3,661,308	  	 	 	3,660,550	  	 	 	3,659,910	  	
Cumulative distributions in excess of earnings	 	 	(948,956	) 	 	 	(915,543	) 	 	 	(895,122	) 	 	 	(869,434	) 	 	 	(855,631	) 	
Other comprehensive loss	 	 	(44	) 	 	 	(465	) 	 	 	(691	) 	 	 	(1,028	) 	 	 	(742	) 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Piedmont stockholders' equity	 	 	2,715,250	  	 	 	2,747,289	  	 	 	2,767,222	  	 	 	2,791,815	  	 	 	2,805,264	  	
Non-controlling interest	 	 	5,973	  	 	 	6,228	  	 	 	6,232	  	 	 	6,117	  	 	 	5,959	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total stockholders' equity	 	 	2,721,223	  	 	 	2,753,517	  	 	 	2,773,454	  	 	 	2,797,932	  	 	 	2,811,223	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities, redeemable common stock and stockholders' equity	 	  $	4,560,206	  	 	  $	4,563,272	  	 	  $	4,373,480	  	 	  $	4,389,585	  	 	  $	4,405,501	  	

All classes of common stock outstanding at end of period  (1)	 	 	172,827	  	 	 	172,658	  	 	 	172,658	  	 	 	172,658	  	 	 	172,658	  	
 
(1) On January 22, 2010, we filed an amendment to our charter to effect a recapitalization of our common stock as described further in our Securities and Exchange Commission ("SEC") filings. The recapitalization had the effect of a one-for-three reverse stock split. All prior period per share data has been restated to give net effect to this one-for-three reverse stock split.
 
10

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	
 	  	 	 	 	
 	  	        6/30/2011        	 	 	    3/31/2011        	 	 	    12/31/2010        	 	 	    9/30/2010        	 	 	    6/30/2010        	 	
 	  	 	 	 	
Revenues:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental income	  	$	112,834	  	 	$	109,457	  	 	$	110,334	  	 	$	110,134	  	 	$	110,049	  	
Tenant reimbursements	  	 	36,000	  	 	 	32,344	  	 	 	36,865	  	 	 	29,442	  	 	 	33,034	  	
Property management fee revenue	  	 	363	  	 	 	830	  	 	 	948	  	 	 	806	  	 	 	705	  	
Other rental income	  	 	1,347	  	 	 	3,404	  	 	 	1,454	  	 	 	4,230	  	 	 	479	  	
 	  	 	 	 	
    Total revenues	  	 	150,544	  	 	 	146,035	  	 	 	149,601	  	 	 	144,612	  	 	 	144,267	  	
 	 	 	 	 	 	
Operating expenses:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property operating costs	  	 	58,740	  	 	 	54,648	  	 	 	60,090	  	 	 	46,405	  	 	 	55,288	  	
Depreciation	  	 	27,723	  	 	 	26,915	  	 	 	26,544	  	 	 	25,803	  	 	 	25,369	  	
Amortization	  	 	15,821	  	 	 	12,051	  	 	 	11,494	  	 	 	10,976	  	 	 	10,913	  	
General and administrative	  	 	7,697	  	 	 	6,824	  	 	 	7,793	  	 	 	6,803	  	 	 	7,948	  	
 	  	 	 	 	
    Total operating expenses	  	 	109,981	  	 	 	100,438	  	 	 	105,921	  	 	 	89,987	  	 	 	99,518	  	

Real estate operating income	  	 	40,563	  	 	 	45,597	  	 	 	43,680	  	 	 	54,625	  	 	 	44,749	  	
 	 	 	 	 	 	
Other income (expense):	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest expense	  	 	(19,313	) 	 	 	(17,174	) 	 	 	(17,378	) 	 	 	(17,359	) 	 	 	(18,933	) 	
Interest and other income (expense)	  	 	(253	) 	 	 	3,459	  	 	 	491	  	 	 	993	  	 	 	1,036	  	
Equity in income of unconsolidated joint ventures	  	 	338	  	 	 	209	  	 	 	630	  	 	 	619	  	 	 	647	  	
Gain / (loss) on consolidation of variable interest entity	  	 	(388	) 	 	 	1,920	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	
 	  	 	 	 	
    Total other income (expense)	  	 	(19,616	) 	 	 	(11,586	) 	 	 	(16,257	) 	 	 	(15,747	) 	 	 	(17,250	) 	

Income from continuing operations	  	 	20,947	  	 	 	34,011	  	 	 	27,423	  	 	 	38,878	  	 	 	27,499	  	
 	 	 	 	 	 	
Discontinued operations:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income, excluding impairment loss	  	 	201	  	 	 	79	  	 	 	2,216	  	 	 	1,864	  	 	 	1,849	  	
Impairment loss	  	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	(9,587	) 	
Gain / (loss) on sale of properties	  	 	-    	  	 	 	-    	  	 	 	(817	) 	 	 	-    	  	 	 	-    	  	
 	  	 	 	 	
    Income/(loss) from discontinued operations  (1)	  	 	201	  	 	 	79	  	 	 	1,399	  	 	 	1,864	  	 	 	(7,738	) 	

Net income	  	 	21,148	  	 	 	34,090	  	 	 	28,822	  	 	 	40,742	  	 	 	19,761	  	
 	 	 	 	 	 	
Less: Net income attributable to noncontrolling interest	  	 	(121	) 	 	 	(123	) 	 	 	(122	) 	 	 	(158	) 	 	 	(125	) 	

Net income attributable to Piedmont	  	$	21,027	  	 	$	33,967	  	 	$	28,700	  	 	$	40,584	  	 	$	19,636	  	

Weighted average common shares outstanding - diluted	  	 	172,986	  	 	 	172,955	  	 	 	172,996	  	 	 	172,885	  	 	 	172,718	  	
 	 	 	 	 	 	
Net income per share available to common stockholders - diluted	  	$	0.12	  	 	$	0.20	  	 	$	0.17	  	 	$	0.23	  	 	$	0.11	  	

 
(1) Reflects operating results for 111 Sylvan Avenue in Englewood Cliffs, NJ, which was sold on December 8, 2010, and Eastpointe Corporate Center in Issaquah, WA, which was sold on July 1, 2011.
 
11

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	  	Six Months Ended	 	
 	  	  6/30/2011  	 	 	  6/30/2010  	 	  	  Change  	 	 	  Change  	 	  	  6/30/2011  	 	 	  6/30/2010  	 	  	  Change  	 	 	  Change  	 	
Revenues:	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Rental income	  	  $	112,834  	  	 	  $	110,049  	  	  	    $	2,785  	  	 	 	2.5% 	  	  	  $	222,291  	  	 	  $	219,886  	  	  	  $	2,405  	  	 	 	1.1% 	  	
Tenant reimbursements	  	 	36,000  	  	 	 	33,034  	  	  	 	2,966  	  	 	 	9.0% 	  	  	 	68,344  	  	 	 	67,811  	  	  	 	533  	  	 	 	0.8% 	  	
Property management fee revenue	  	 	363  	  	 	 	705  	  	  	 	(342) 	  	 	 	-48.5% 	  	  	 	1,193  	  	 	 	1,458  	  	  	 	(265) 	  	 	 	-18.2%	  	
Other rental income	  	 	1,347  	  	 	 	479  	  	  	 	868  	  	 	 	181.2% 	  	  	 	4,751  	  	 	 	975  	  	  	 	3,776  	  	 	 	387.3% 	  	
 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Total revenues	  	 	150,544  	  	 	 	144,267  	  	  	 	6,277  	  	 	 	4.4% 	  	  	 	296,579  	  	 	 	290,130  	  	  	 	6,449  	  	 	 	2.2% 	  	
 	 	 	 	 	 	 	 	 	
Operating expenses:	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Property operating costs	  	 	58,740  	  	 	 	55,288  	  	  	 	(3,452) 	  	 	 	-6.2% 	  	  	 	113,387  	  	 	 	110,414  	  	  	 	    (2,973) 	  	 	 	-2.7% 	  	
Depreciation	  	 	27,723  	  	 	 	25,369  	  	  	 	(2,354) 	  	 	 	-9.3% 	  	  	 	54,639  	  	 	 	50,849  	  	  	 	(3,790) 	  	 	 	-7.5% 	  	
Amortization	  	 	15,821  	  	 	 	10,913  	  	  	 	(4,908) 	  	 	 	-45.0% 	  	  	 	27,872  	  	 	 	22,246  	  	  	 	(5,626) 	  	 	 	-25.3% 	  	
General and administrative	  	 	7,697  	  	 	 	7,948  	  	  	 	251  	  	 	 	3.2% 	  	  	 	14,522  	  	 	 	14,568  	  	  	 	46  	  	 	 	0.3% 	  	
 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
      Total operating expenses	  	 	109,981  	  	 	 	99,518  	  	  	 	(10,463) 	  	 	 	-10.5% 	  	  	 	210,420  	  	 	 	198,077  	  	  	 	(12,343) 	  	 	 	-6.2% 	  	

Real estate operating income	  	 	40,563  	  	 	 	44,749  	  	  	 	(4,186) 	  	 	 	-9.4% 	  	  	 	86,159  	  	 	 	92,053  	  	  	 	(5,894) 	  	 	 	-6.4% 	  	
 	 	 	 	 	 	 	 	 	
Other income (expense):	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Interest expense	  	 	    (19,313) 	  	 	 	    (18,933) 	  	  	 	(380) 	  	 	 	-2.0% 	  	  	 	(36,487) 	  	 	 	    (38,024) 	  	  	 	1,537  	  	 	 	4.0% 	  	
Interest and other income (expense)	  	 	(253) 	  	 	 	1,036  	  	  	 	(1,289) 	  	 	 	-124.4% 	  	  	 	3,206  	  	 	 	2,005  	  	  	 	1,201  	  	 	 	59.9% 	  	
Equity in income of unconsolidated joint ventures	  	 	338  	  	 	 	647  	  	  	 	(309) 	  	 	 	-47.8% 	  	  	 	547  	  	 	 	1,384  	  	  	 	(837) 	  	 	 	-60.5% 	  	
Gain / (loss) on consolidation of variable interest entity	  	 	(388) 	  	 	 	-      	  	  	 	(388) 	  	 	 	0.0% 	  	  	 	1,532  	  	 	 	-      	  	  	 	1,532  	  	 	 	0.0% 	  	
 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
      Total other income (expense)	  	 	(19,616) 	  	 	 	(17,250) 	  	  	 	(2,366) 	  	 	 	-13.7% 	  	  	 	(31,202) 	  	 	 	(34,635) 	  	  	 	3,433  	  	 	 	9.9% 	  	

Income from continuing operations	  	 	20,947  	  	 	 	27,499  	  	  	 	(6,552) 	  	 	 	-23.8% 	  	  	 	54,957  	  	 	 	57,418  	  	  	 	(2,461) 	  	 	 	-4.3% 	  	
 	 	 	 	 	 	 	 	 	
Discontinued operations:	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Operating income, excluding impairment loss	  	 	201  	  	 	 	1,849  	  	  	 	(1,648) 	  	 	 	-89.1% 	  	  	 	280  	  	 	 	3,516  	  	  	 	(3,236) 	  	 	 	-92.0% 	  	
Impairment loss	  	 	-      	  	 	 	(9,587) 	  	  	 	9,587  	  	 	 	100.0% 	  	  	 	-      	  	 	 	(9,587) 	  	  	 	9,587  	  	 	 	100.0% 	  	
 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
      Income/(loss) from discontinued operations  (1)	  	 	201  	  	 	 	(7,738) 	  	  	 	7,939  	  	 	 	102.6% 	  	  	 	280  	  	 	 	(6,071) 	  	  	 	6,351  	  	 	 	104.6% 	  	

Net income	  	 	21,148  	  	 	 	19,761  	  	  	 	1,387  	  	 	 	7.0% 	  	  	 	55,237  	  	 	 	51,347  	  	  	 	3,890  	  	 	 	7.6% 	  	
 	 	 	 	 	 	 	 	 	
Less: Net income attributable to noncontrolling interest	  	 	(121) 	  	 	 	(125) 	  	  	 	4  	  	 	 	3.2% 	  	  	 	(243) 	  	 	 	(251) 	  	  	 	8  	  	 	 	3.2% 	  	

Net income attributable to Piedmont	  	  $	21,027  	  	 	  $	19,636  	  	  	  $	1,391  	  	 	 	7.1% 	  	  	  $	54,994  	  	 	  $	51,096  	  	  	  $	3,898  	  	 	 	7.6% 	  	

Weighted average common shares outstanding - diluted	  	 	172,986  	  	 	 	172,718  	  	  	 	 	 	 	 	 	 	  	 	172,908  	  	 	 	168,912  	  	  	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	
Net income per share available to common stockholders - diluted	  	  $	0.12  	  	 	  $	0.11  	  	  	 	 	 	 	 	 	 	  	  $	0.32  	  	 	  $	0.30  	  	  	 	 	 	 	 	 	 	

 
(1) Reflects operating results for 111 Sylvan Avenue in Englewood Cliffs, NJ, which was sold on December 8, 2010, and Eastpointe Corporate Center in Issaquah, WA, which was sold on July 1, 2011.
 
12

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	  	Six Months Ended	 	
 	  	    6/30/2011    	 	  	    6/30/2010    	 	  	    6/30/2011    	 	  	    6/30/2010    	 	
 	 	 	 	 	
Net income attributable to Piedmont	  	  $	21,027  	  	  	  $	19,636  	  	  	  $	54,994  	  	  	  $	51,096  	  	
 	 	 	 	 	
      Depreciation (1) (2)	  	 	27,879  	  	  	 	25,872  	  	  	 	55,033  	  	  	 	52,122  	  	
      Amortization (1)	  	 	15,878  	  	  	 	11,104  	  	  	 	27,984  	  	  	 	22,592  	  	
      (Gain) / loss on sale of properties (1)	  	 	(45) 	  	  	 	-      	  	  	 	(45) 	  	  	 	-      	  	
      (Gain) / loss on consolidation of VIE	  	 	388  	  	  	 	-      	  	  	 	(1,532) 	  	  	 	-      	  	

Funds from operations	  	 	65,127  	  	  	 	56,612  	  	  	 	136,434  	  	  	 	125,810  	  	
 	 	 	 	 	
      Acquisition costs	  	 	716  	  	  	 	48  	  	  	 	690  	  	  	 	48  	  	
      Impairment loss (1)	  	 	-      	  	  	 	9,587  	  	  	 	-      	  	  	 	9,587  	  	

Core funds from operations	  	 	65,843  	  	  	 	66,247  	  	  	 	137,124  	  	  	 	135,445  	  	
 	 	 	 	 	
      Depreciation of non real estate assets	  	 	168  	  	  	 	178  	  	  	 	338  	  	  	 	357  	  	
      Stock-based and other non-cash compensation expense	  	 	896  	  	  	 	711  	  	  	 	1,864  	  	  	 	1,364  	  	
      Deferred financing cost amortization	  	 	1,060  	  	  	 	696  	  	  	 	1,667  	  	  	 	1,393  	  	
      Amortization of fair market adjustments on notes payable	  	 	942  	  	  	 	-      	  	  	 	942  	  	  	 	-      	  	
      Straight-line effects of lease revenue (1)	  	 	(2,596) 	  	  	 	(784) 	  	  	 	(359) 	  	  	 	289  	  	
      Amortization of lease-related intangibles (1)	  	 	(1,670) 	  	  	 	(1,525) 	  	  	 	(3,033) 	  	  	 	(2,952) 	  	
      Income from amortization of discount on purchase of mezzanine loans	  	 	-      	  	  	 	(694) 	  	  	 	(484) 	  	  	 	(1,362) 	  	
      Acquisition costs	  	 	(716) 	  	  	 	(48) 	  	  	 	(690) 	  	  	 	(48) 	  	
      Non-incremental capital expenditures (3)	  	 	(16,908) 	  	  	 	(8,969) 	  	  	 	(38,377) 	  	  	 	(18,383) 	  	

Adjusted funds from operations	  	  $	47,019  	  	  	  $	55,812  	  	  	  $	98,992  	  	  	  $	116,103  	  	

Weighted average common shares outstanding-diluted	  	 	172,986  	  	  	 	172,718  	  	  	 	172,908  	  	  	 	168,912  	  	
 	 	 	 	 	
Funds from operations per share (diluted)	  	  $	0.38  	  	  	  $	0.33  	  	  	  $	0.79  	  	  	  $	0.74  	  	
Core funds from operations per share (diluted)	  	  $	0.38  	  	  	  $	0.38  	  	  	  $	0.79  	  	  	  $	0.80  	  	
Adjusted funds from operations per share (diluted)	  	  $	0.27  	  	  	  $	0.32  	  	  	  $	0.57  	  	  	  $	0.69  	  	

(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 34.
 
13

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	  	Six Months Ended	 	
 	  	        6/30/2011        	 	  	        6/30/2010        	 	  	        6/30/2011        	 	  	        6/30/2010        	 	
 	 	 	 	 	
Net income attributable to Piedmont	  	  $	21,027  	  	  	  $	19,636  	  	  	  $	54,994  	  	  	  $	51,096  	  	
 	 	 	 	 	
Net income attributable to noncontrolling interest	  	 	121  	  	  	 	125  	  	  	 	243  	  	  	 	251  	  	
Interest expense	  	 	19,313  	  	  	 	18,933  	  	  	 	36,487  	  	  	 	38,024  	  	
Depreciation (1)	  	 	28,047  	  	  	 	26,050  	  	  	 	55,371  	  	  	 	52,478  	  	
Amortization (1)	  	 	15,878  	  	  	 	11,104  	  	  	 	27,984  	  	  	 	22,592  	  	
Impairment loss (1)	  	 	-      	  	  	 	9,587  	  	  	 	-      	  	  	 	9,587  	  	
(Gain) / loss on sale of properties (1)	  	 	(45) 	  	  	 	-      	  	  	 	(45) 	  	  	 	-      	  	
(Gain) / loss on consolidation of VIE	  	 	388  	  	  	 	-      	  	  	 	(1,532) 	  	  	 	-      	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Core EBITDA	  	 	84,729  	  	  	 	85,435  	  	  	 	173,502  	  	  	 	174,028  	  	
 	 	 	 	 	
General & administrative expenses (1)	  	 	7,724  	  	  	 	7,993  	  	  	 	14,624  	  	  	 	14,689  	  	
Management fee revenue	  	 	(363) 	  	  	 	(705) 	  	  	 	(1,193) 	  	  	 	(1,458) 	  	
Interest and other income (1)	  	 	253  	  	  	 	(1,036) 	  	  	 	(3,206) 	  	  	 	(2,005) 	  	
Lease termination income	  	 	(1,347) 	  	  	 	(479) 	  	  	 	(4,751) 	  	  	 	(975) 	  	
Lease termination expense—straight line rent & acquisition intangibles write-offs	  	 	43  	  	  	 	679  	  	  	 	479  	  	  	 	746  	  	
Straight-line effects of lease revenue (1)	  	 	(2,639) 	  	  	 	(1,463) 	  	  	 	(667) 	  	  	 	(456) 	  	
Net effect of amortization of above/(below) market in-place lease intangibles  (1)	  	 	(1,670) 	  	  	 	(1,525) 	  	  	 	(3,204) 	  	  	 	(2,952) 	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Core net operating income	  	 	86,730  	  	  	 	88,899  	  	  	 	175,584  	  	  	 	181,617  	  	
 	 	 	 	 	
Net operating income from:	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Acquisitions (2)	  	 	(3,415) 	  	  	 	-      	  	  	 	(3,061) 	  	  	 	-      	  	
Dispositions (3)	  	 	-      	  	  	 	(1,683) 	  	  	 	1  	  	  	 	(3,364) 	  	
Industrial properties	  	 	(242) 	  	  	 	(91) 	  	  	 	(482) 	  	  	 	(364) 	  	
Unconsolidated joint ventures	  	 	(696) 	  	  	 	(1,186) 	  	  	 	(1,354) 	  	  	 	(2,453) 	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Same Store NOI	  	  $	82,377  	  	  	  $	85,939  	  	  	  $	170,688  	  	  	  $	175,436  	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Change period over period	  	 	-4.1%  	  	  	 	N/A  	  	  	 	-2.7%  	  	  	 	N/A  	  	

 	 	 
Same Store Net Operating Income
Top Seven Markets

  	 	 	  	Three Months Ended	 	  	Six Months Ended	 	  	  	 	
 	 	 	  	6/30/2011	 	  	6/30/2010	 	  	6/30/2011	 	  	6/30/2010	 	  	 	 	 	
 	 	 	  	        $        	 	  	        %        	 	  	        $        	 	  	        %        	 	  	        $        	 	  	        %        	 	  	        $        	 	  	        %        	 	  	 	 	 	 	
 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	
 	 	Chicago (4)	  	$	18,983	  	  	 	23.0  	  	  	$	17,599	  	  	 	20.5  	  	  	$	37,478	  	  	 	22.0  	  	  	$	35,343	  	  	 	20.1  	  	  	 	 	 	 	 	 	
 	 	Washington, D.C. (5)	  	 	17,742	  	  	 	21.5  	  	  	 	18,448	  	  	 	21.5  	  	  	 	35,766	  	  	 	21.0  	  	  	 	37,320	  	  	 	21.3  	  	  	 	 	 	 	 	 	 	
 	 	New York (6)	  	 	14,155	  	  	 	17.2  	  	  	 	13,204	  	  	 	15.3  	  	  	 	27,899	  	  	 	16.3  	  	  	 	25,237	  	  	 	14.4  	  	  	 	 	 	 	 	 	 	 	
 	 	Minneapolis	  	 	4,955	  	  	 	6.0  	  	  	 	5,416	  	  	 	6.3  	  	  	 	10,271	  	  	 	6.0  	  	  	 	10,675	  	  	 	6.1  	  	  	 	 	 	 	 	 	 	 	 	
 	 	Los Angeles (7)	  	 	3,936	  	  	 	4.8  	  	  	 	5,086	  	  	 	5.9  	  	  	 	7,728	  	  	 	4.5  	  	  	 	10,089	  	  	 	5.7  	  	  	 	 	 	 	 	 	 	 	 	 	
 	 	Dallas	  	 	3,408	  	  	 	4.1  	  	  	 	3,962	  	  	 	4.6  	  	  	 	7,228	  	  	 	4.2  	  	  	 	7,807	  	  	 	4.5  	  	  	 	 	 	 	 	 	 	 	 	 	 	
 	 	Boston (8)	  	 	2,598	  	  	 	3.2  	  	  	 	3,927	  	  	 	4.6  	  	  	 	6,475	  	  	 	3.8  	  	  	 	7,656	  	  	 	4.4  	  	  	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Other (9)	  	 	16,600	  	  	 	20.2  	  	  	 	18,297	  	  	 	21.3  	  	  	 	37,843	  	  	 	22.2  	  	  	 	41,309	  	  	 	23.5  	  	  	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	      Total	  	  $	    82,377	  	  	 	100.0  	  	  	  $	    85,939	  	  	 	100.0  	  	  	  $	    170,688	  	  	 	100.0  	  	  	  $	    175,436	  	  	 	100.0  	  	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(1) Includes amounts attributable to wholly-owned properties, including discontinued operations, and our proportionate share of amounts attributable to unconsolidated joint ventures.
(2) Acquisitions consist of Suwanee Gateway One in Suwanee, GA, purchased on September 28, 2010, Meridian Crossings in Richfield, MN, purchased on October 1, 2010, 1200 Enclave Parkway in Houston, TX, purchased on March 30, 2011, 500 West Monroe Street in Chicago, IL, acquired on March 31, 2011, The Dupree in Atlanta, GA, purchased on April 29, 2011, and The Medici in Atlanta, GA, purchased on June 7, 2011.
(3) Dispositions consists of 111 Sylvan Avenue in Englewood Cliffs, NJ, sold on December 8, 2010.
(4) The increase in Chicago Same Store Net Operating Income for the three months ended June 30, 2011 and the six months ended June 30, 2011 as compared to the same periods in 2010 is primarily due to a rental abatement concession in 2010 associated with a lease renewal at Windy Point I in Schaumburg, IL.
(5) The decrease in Washington, D.C. Same Store Net Operating Income for the three months ended June 30, 2011 and the six months ended June 30, 2011 as compared to the same periods in 2010 is primarily related to a lease termination at the beginning of the first quarter of 2011 at 1201 Eye Street in Washington, D.C. in order to accommodate short-term swing space needs for NASA as well as the expiration of a lease during the first quarter of 2011 at 11109 Sunset Hills Road in Reston, VA.
(6) The increase in New York Same Store Net Operating Income for the three months ended June 30, 2011 as compared to the same period in 2010 is primarily related to rental rate increases at 60 Broad Street in New York, NY. The increase in New York Same Store Net Operating Income for the six months ended June 30, 2011 as compared to the same period in 2010 is primarily related to the rental rate increases previously mentioned as well as a rental abatement that was provided in 2010 associated with the lease extension/restructure with the State of New York at 60 Broad Street in New York, NY.
(7) The decrease in Los Angeles Same Store Net Operating Income for the three months ended June 30, 2011 and the six months ended June 30, 2011 as compared to the same periods in 2010 is primarily due to a space contraction at lease renewal effective third quarter 2010 along with a roll down of total revenues per square foot received from that renewing tenant at 800 North Brand Boulevard in Glendale, CA, as well as a rental abatement associated with a long-term lease renewal at 26200 Enterprise Way in Lake Forest, CA.
(8) The decrease in Boston Same Store Net Operating Income for the three months ended June 30, 2011 and the six months ended June 30, 2011 as compared to the same periods in 2010 is primarily due to a rental rate reduction and rental abatement associated with a long-term lease renewal with State Street Bank at 1200 Crown Colony Drive in Quincy, MA.
(9) The decrease in Other Same Store Net Operating Income for the three months ended June 30, 2011 and the six months ended June 30, 2011 as compared to the same periods in 2010 is due to a number of factors, the largest four of which are reduced rental income and operating expense reimbursements due to the expiration of an approximate 87,000 square foot lease during the fourth quarter of 2010 at Eastpointe Corporate Center in Issaquah, WA, a lease contraction of approximately 91,000 square feet effective third quarter 2010 at Chandler Forum in Chandler, AZ, reduced rental income and operating expense reimbursements due to the early termination of a lease at 1075 West Entrance Drive in Auburn Hills, MI which was arranged in order to accommodate the recently executed lease with Chrysler Group, LLC for the entire building, and a rental rate reduction associated with a lease renewal at 150 West Jefferson in Detroit, MI.
 
14

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	            Three Months Ended         	 	  	    Six Months Ended    	 	
 	  	        6/30/2011        	 	  	        6/30/2010        	 	  	        6/30/2011        	 	  	        6/30/2010        	 	
 	 	 	 	 	
Net income attributable to Piedmont	  	  $	21,027  	  	  	  $	19,636  	  	  	  $	54,994  	  	  	  $	51,096  	  	
 	 	 	 	 	
Net income attributable to noncontrolling interest	  	 	121  	  	  	 	125  	  	  	 	243  	  	  	 	251  	  	
Interest expense	  	 	19,313  	  	  	 	18,933  	  	  	 	36,487  	  	  	 	38,024  	  	
Depreciation (1)	  	 	28,047  	  	  	 	26,050  	  	  	 	55,371  	  	  	 	52,478  	  	
Amortization (1)	  	 	15,878  	  	  	 	11,104  	  	  	 	27,984  	  	  	 	22,592  	  	
Impairment loss (1)	  	 	—  	  	  	 	9,587  	  	  	 	—  	  	  	 	9,587  	  	
(Gain) / loss on sale of properties (1)	  	 	(45) 	  	  	 	—  	  	  	 	(45) 	  	  	 	—  	  	
(Gain) / loss on consolidation of VIE	  	 	388  	  	  	 	—  	  	  	 	(1,532) 	  	  	 	—  	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Core EBITDA	  	 	84,729  	  	  	 	85,435  	  	  	 	173,502  	  	  	 	174,028  	  	
 	 	 	 	 	
General & administrative expenses (1)	  	 	7,724  	  	  	 	7,993  	  	  	 	14,624  	  	  	 	14,689  	  	
Management fee revenue	  	 	(363) 	  	  	 	(705) 	  	  	 	(1,193) 	  	  	 	(1,458) 	  	
Interest and other income (1)	  	 	253  	  	  	 	(1,036) 	  	  	 	(3,206) 	  	  	 	(2,005) 	  	
Lease termination income	  	 	(1,347) 	  	  	 	(479) 	  	  	 	(4,751) 	  	  	 	(975) 	  	
Lease termination expense—straight line rent & acquisition intangibles write-offs	  	 	43  	  	  	 	679  	  	  	 	479  	  	  	 	746  	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Core net operating income	  	 	91,039  	  	  	 	91,887  	  	  	 	179,455  	  	  	 	185,025  	  	
 	 	 	 	 	
Net operating income from:	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Acquisitions (2)	  	 	(4,725) 	  	  	 	—  	  	  	 	(5,545)	  	  	 	—  	  	
Dispositions (3)	  	 	—  	  	  	 	(1,586) 	  	  	 	—  	  	  	 	(3,170) 	  	
Industrial properties	  	 	(257) 	  	  	 	(104) 	  	  	 	(516) 	  	  	 	(385) 	  	
Unconsolidated joint ventures	  	 	(653) 	  	  	 	(1,123) 	  	  	 	(1,269) 	  	  	 	(2,376) 	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Same Store NOI	  	  $	    85,404  	  	  	  $	    89,074  	  	  	  $	    172,125  	  	  	  $	    179,094  	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Change period over period	  	 	-4.1%      	  	  	 	N/A      	  	  	 	-3.9%      	  	  	 	N/A      	  	

 	 	 
Same Store Net Operating Income
Top Seven Markets
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	
  	 	 	  	Three Months Ended	 	  	Six Months Ended	 	  	  	 	
 	 	 	  	6/30/2011	 	  	6/30/2010	 	  	6/30/2011	 	  	6/30/2010	 	  	  	 	 	
 	 	 	  	        $        	 	  	        %        	 	  	        $        	 	  	        %        	 	  	        $        	 	  	        %        	 	  	        $        	 	  	        %        	 	  	 	 	 	 	
 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	
 	 	Chicago	  	  $	19,460	  	  	 	22.8  	  	  	$	19,657	  	  	 	22.1  	  	  	$	38,636	  	  	 	22.5  	  	  	$	38,939	  	  	 	21.7  	  	  	 	 	 	 	 	 	
 	 	Washington, D.C. (4)	  	 	18,239	  	  	 	21.4  	  	  	 	18,602	  	  	 	20.9  	  	  	 	36,318	  	  	 	21.1  	  	  	 	37,569	  	  	 	21.0  	  	  	 	 	 	 	 	 	 	
 	 	New York	  	 	13,955	  	  	 	16.3  	  	  	 	13,448	  	  	 	15.1  	  	  	 	27,951	  	  	 	16.2  	  	  	 	27,269	  	  	 	15.2  	  	  	 	 	 	 	 	 	 	 	
 	 	Minneapolis	  	 	4,764	  	  	 	5.6  	  	  	 	5,272	  	  	 	5.9  	  	  	 	9,873	  	  	 	5.7  	  	  	 	10,351	  	  	 	5.8  	  	  	 	 	 	 	 	 	 	 	 	
 	 	Los Angeles (5)	  	 	4,252	  	  	 	5.0  	  	  	 	5,057	  	  	 	5.7  	  	  	 	8,166	  	  	 	4.7  	  	  	 	10,177	  	  	 	5.7  	  	  	 	 	 	 	 	 	 	 	 	 	
 	 	Dallas	  	 	3,619	  	  	 	4.2  	  	  	 	3,682	  	  	 	4.1  	  	  	 	7,660	  	  	 	4.5  	  	  	 	7,532	  	  	 	4.2  	  	  	 	 	 	 	 	 	 	 	 	 	 	
 	 	Boston (6)	  	 	2,831	  	  	 	3.3  	  	  	 	3,600	  	  	 	4.0  	  	  	 	6,360	  	  	 	3.7  	  	  	 	7,128	  	  	 	4.0  	  	  	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Other (7)	  	 	18,284	  	  	 	21.4  	  	  	 	19,756	  	  	 	22.2  	  	  	 	37,161	  	  	 	21.6  	  	  	 	40,129	  	  	 	22.4  	  	  	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	      Total	  	  $	    85,404	  	  	 	100.0  	  	  	  $	    89,074	  	  	 	100.0  	  	  	  $	    172,125	  	  	 	100.0  	  	  	  $	    179,094	  	  	 	100.0  	  	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(1) Includes amounts attributable to wholly-owned properties, including discontinued operations, and our proportionate share of amounts attributable to unconsolidated joint ventures.
(2) Acquisitions consist of Suwanee Gateway One in Suwanee, GA, purchased on September 28, 2010, Meridian Crossings in Richfield, MN, purchased on October 1, 2010, 1200 Enclave Parkway in Houston, TX, purchased on March 30, 2011, 500 West Monroe Street in Chicago, IL, acquired on March 31, 2011, The Dupree in Atlanta, GA, purchased on April 29, 2011, and The Medici in Atlanta, GA, purchased on June 7, 2011.
(3) Dispositions consists of 111 Sylvan Avenue in Englewood Cliffs, NJ, sold on December 8, 2010.
(4) The decrease in Washington, D.C. Same Store Net Operating Income for the three months ended June 30, 2011 and the six months ended June 30, 2011 as compared to the same periods in 2010 is primarily related to a lease termination at 1201 Eye Street in Washington, D.C. in order to accommodate short-term swing space needs for NASA. The lease termination occurred during the first quarter of 2011.
(5) The decrease in Los Angeles Same Store Net Operating Income for the three months ended June 30, 2011 and the six months ended June 30, 2011 as compared to the same periods in 2010 is primarily due to a space contraction at lease renewal effective third quarter 2010 along with a roll down of total revenues per square foot received from that renewing tenant at 800 North Brand Boulevard in Glendale, CA.
(6) The decrease in Boston Same Store Net Operating Income for the three months ended June 30, 2011 and the six months ended June 30, 2011 as compared to the same periods in 2010 is primarily due to a rental rate reduction associated with a long-term lease renewal with State Street Bank at 1200 Crown Colony Drive in Quincy, MA.
(7) The decrease in Other Same Store Net Operating Income for the three months ended June 30, 2011 and the six months ended June 30, 2011 as compared to the same periods in 2010 is due to a number of factors, the largest four of which are reduced rental income and operating expense reimbursements due to the expiration of an approximate 87,000 square foot lease during the fourth quarter of 2010 at Eastpointe Corporate Center in Issaquah, WA, a lease contraction of approximately 91,000 square feet effective third quarter 2010 at Chandler Forum in Chandler, AZ, reduced rental income and operating expense reimbursements due to the early termination of a lease at 1075 West Entrance Drive in Auburn Hills, MI which was arranged in order to accommodate the recently executed lease with Chrysler Group, LLC for the entire building, and a rental rate reduction associated with a lease renewal at 150 West Jefferson in Detroit, MI.
 
15

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

 	 	 	 	 	 	 	 	 	
 	  	As of
            June 30, 2011        	 	  	As of
    December 31, 2010    	 	

Common stock price (1)	  	 	$20.39	  	  	 	$20.14	  	
 	 	 	
Total shares outstanding	  	 	172,827	  	  	 	172,658	  	
 	 	 	
Equity market capitalization (1)	  	 	$3,523,937	  	  	 	$3,477,342	  	
 	 	 	
Total gross debt-principal amount outstanding	  	 	$1,637,525	  	  	 	$1,402,525	  	
 	 	 	
Total market capitalization (1)	  	 	$5,161,462	  	  	 	$4,879,867	  	
 	 	 	
Total gross debt / Total market capitalization	  	 	31.7%	  	  	 	28.7%	  	
 	 	 	
Total gross real estate assets	  	 	$4,828,700	  	  	 	$4,567,326	  	
 	 	 	
Total gross debt / Total gross real estate assets (2)	  	 	33.9%	  	  	 	30.7%	  	
 	 	 	
Total gross debt / Total gross assets (3)	  	 	29.8%	  	  	 	26.6%	  	

(1) Reflects common stock closing price as of the end of the reporting period.
(2) Total gross debt to total gross real estate assets ratio is defined as total gross 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.
(3) Total gross debt to total gross assets ratio is defined as total gross 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.
 
16

Piedmont Office Realty Trust, Inc.
Debt Summary
As of June 30, 2011
Unaudited ($ in thousands)

 
 	 	 	 	 	 	 	 	 	
Floating Rate & Fixed Rate Debt	
Debt (1)	  	Principal Amount
Outstanding	  	Weighted Average
Stated Interest Rate	  	Weighted Average
Maturity	  	 	
 	  	 	
Floating Rate	  	    $485,000(2)	  	0.91%(3)	  	13.8 months	  	 	
Fixed Rate	  	1,152,525	  	5.16%	  	42.9 months	  	 	
 	  	 	
Total	  	$1,637,525	  	3.90%	  	34.3 months	  	 	

 	  	 	  	 	  	 	  	 	

 	  	 	  	 	  	 	  	 	

Unsecured & Secured Debt	
Debt (1)	  	Principal Amount
Outstanding	  	Weighted Average
Stated Interest Rate	  	Weighted Average
Maturity	  	 	
 	  	 	
Unsecured	  	$300,000	  	0.67%(4)	  	14.0 months	  	 	
Secured	  	1,337,525	  	4.63%	  	38.8 months	  	 	
 	  	 	
Total	  	$1,637,525	  	3.90%	  	34.3 months	  	 	

 	  	 	  	 	  	 	  	 	

 	  	 	  	 	  	 	  	 	

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

2011	  	 
$0	 	 	  	 
$0	 	 	  	 	  	 
0.0%	  	 	
2012	  	230,000 (5)	 	 	  	300,000 (6)	 	 	  	1.27%	  	32.4%	  	 	
2013	  	0	 	 	  	0	 	 	  	N/A	  	N/A	  	 	
2014	  	695,000	 	 	  	0	 	 	  	4.92%	  	42.5%	  	 	
2015	  	105,000	 	 	  	0	 	 	  	5.29%	  	6.4%	  	 	
2016	  	167,525	 	 	  	0	 	 	  	5.55%	  	10.2%	  	 	
2017	  	140,000	 	 	  	0	 	 	  	5.76%	  	8.5%	  	 	
 	  	 	
Total	  	$1,337,525	 	 	  	$300,000	 	 	  	3.90%	  	100.0%	  	 	
 	  	 	
(1) All of Piedmont’s outstanding debt as of June 30, 2011 is interest-only debt.
(2) Amount represents the outstanding balance as of June 30, 2011 on the $500 million unsecured line of credit, totaling $300 million, along with the balances on two loans secured by 500 West Monroe Street or equity ownership interests therein, totaling $185 million.
(3) The weighted average interest rate is a weighted average rate for amounts drawn under our $500 million unsecured line of credit and the loans totaling $185 million related to 500 West Monroe Street. Please see the following page for additional details on the interest rate for each loan.
(4) The weighted average interest rate is a weighted average rate for amounts drawn under our $500 million unsecured line of credit.
(5) Amount includes the balances as of June 30, 2011 of the loans related to 500 West Monroe Street, totaling $185 million, which mature in August 2011. Management provided notice of its election to exercise the one-year extension option available under each loan to extend the maturity date of each to August 2012. The payment of a 25 basis point fee will be required to extend each of the loans related to 500 West Monroe Street. Additionally, in order to extend the loans related to 500 West Monroe Street, Piedmont must purchase interest rate caps for the extension period, pay certain reserve amounts to the lender to be held on Piedmont’s behalf to fund potential future expenses, and not then be in default under either loan agreement.
(6) Amount represents the outstanding balance as of June 30, 2011 on the $500 million unsecured line of credit, which matures in August 2011. Management provided notice of its election to exercise the one-year extension option available under the loan to extend the maturity date to August 2012. The payment of a 15 basis point fee will be required to extend the term of the loan.
 
17

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

 	 	 	 	 	 	 	 	 	 	 	 	 	
Facility	  	Property	  	Rate(1)	 	Maturity	 	 	Principal Amount
Outstanding as of
June 30, 2011	 	
 	 	 	 	 	
Secured	  	 	  	 	 	 	 	 	 	 	 	 	
500 West Monroe Mortgage Loan	  	500 West Monroe Street	  	LIBOR + 1.01% (2)	 	 	8/9/2011	(3) 	 	 	$140,000	  	
500 West Monroe Mezzanine Loan (4)	  	500 West Monroe Street	  	LIBOR + 1.45% (2)	 	 	8/9/2011	(3) 	 	 	45,000	  	
$45.0 Million Fixed-Rate Loan	  	4250 North Fairfax	  	5.20%	 	 	6/1/2012	  	 	 	45,000	  	
35 West Wacker Building Mortgage Note	  	35 West Wacker Drive	  	5.10%	 	 	1/1/2014	  	 	 	120,000	  	
Aon Center Chicago Mortgage Note	  	Aon Center	  	4.87%	 	 	5/1/2014	  	 	 	200,000	  	
Aon Center Chicago Mortgage Note	  	Aon Center	  	5.70%	 	 	5/1/2014	  	 	 	25,000	  	
Secured Pooled Facility	  	Nine Property Collateralized Pool (5)	  	4.84%	 	 	6/7/2014	  	 	 	350,000	  	
$105.0 Million Fixed-Rate Loan	  	US Bancorp Center	  	5.29%	 	 	5/11/2015	  	 	 	105,000	  	
$125.0 Million Fixed-Rate Loan	  	Four Property Collateralized Pool (6)	  	5.50%	 	 	4/1/2016	  	 	 	125,000	  	
$42.5 Million Fixed-Rate Loan	  	Las Colinas Corporate Center I & II	  	5.70%	 	 	10/11/2016	  	 	 	42,525	  	
WDC Mortgage Notes	  	1201 & 1225 Eye Street	  	5.76%	 	 	11/1/2017	  	 	 	140,000	  	

Subtotal / Weighted Average (7)	  	 	  	4.63%	 	 	 	 	 	 	$1,337,525	  	
 	 	 	 	 	
Unsecured	  	 	  	 	 	 	 	 	 	 	 	 	
$500 Million Unsecured Facility (8)	  	N/A	  	    0.67%(9)	 	 	8/30/2011	(10) 	 	 	300,000	  	
 	 	
Subtotal / Weighted Average (7)	  	 	  	0.67%	 	 	 	 	 	 	$300,000	  	

 	 	
Total Gross Debt-Principal Amount Outstanding / Weighted Average Stated Rate (7)	  	3.90%	 	 	 	 	 	 	$1,637,525	  	

Purchase Accounting Valuation Adjustments (11)	  	 	 	 	 	 	 	 	($471)	  	

Total Debt-GAAP Amount Outstanding / Weighted Average Effective Rate (12)	  	4.17%	 	 	 	 	 	 	$1,637,054	  	
 	 	
(1) All of Piedmont’s outstanding debt as of June 30, 2011 is interest-only debt.
(2) The LIBOR rate effective under this loan on June 30, 2011 was 0.188%. There are interest rate cap agreements in place through August 2011 that limit Piedmont’s LIBOR exposure to 1.00%. Any increases in LIBOR above 1.00% are the responsibility of our counterparty.
(3) Piedmont may extend the term for one additional year provided that Piedmont is not then in default, a 25 basis point extension fee is paid, interest rate caps are purchased for the extension period, and certain reserve amounts are provided to the lender to be held on Piedmont’s behalf to fund potential future expenses of the property. Piedmont has provided notice to the lender of its election to extend the term of the loan.
(4) The principal balance of this loan is $61.5 million. Piedmont owns a $16.5 million junior participation in this loan, which is eliminated upon consolidation.
(5) The nine property collateralized pool includes 1200 Crown Colony Drive, Braker Pointe III, 2 Gatehall Drive, One and Two Independence Square, 2120 West End Avenue, 200 and 400 Bridgewater Crossing, and Fairway Center II.
(6) The four property collateralized pool includes 1430 Enclave Parkway, Windy Point I and II, and 1055 East Colorado Boulevard.
(7) Weighted average is based on the total balance outstanding and interest rate at June 30, 2011.
(8) All of Piedmont’s outstanding debt as of June 30, 2011 is term debt with the exception of the $500 million unsecured line of credit.
(9) The interest rate on the $500 million unsecured line of credit is equal to the weighted-average interest rate on all outstanding draws as of June 30, 2011. Piedmont may select from multiple interest rate options with each draw, including the prime rate and various length LIBOR locks. All LIBOR selections are subject to an additional spread (0.475% as of June 30, 2011) over the selected rate based on Piedmont’s current credit rating.
(10) 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. Piedmont has provided notice to the lender of its election to extend the term of the loan.
(11) Adjustments relate to the fair market valuation of the debt associated with 500 West Monroe Street upon consolidation. The discounts will be amortized to interest expense through August 2011, the remaining contractual term of the debt.
(12) Weighted average effective rate reflects the higher effective rate under the 500 West Monroe Street loans as a result of fair market valuation of the debt upon consolidation of 500 West Monroe Street.
 
18

Piedmont Office Realty Trust, Inc.
Debt Analysis
As of June 30, 2011
Unaudited

 
 	 	 	 	 	 	 	 	 	 	 	
Debt Covenant Compliance (1)	  	Required	 	  	Actual	 	
 
Maximum Leverage Ratio	  	 	0.60	  	  	 	0.34        	  	
 
Minimum Fixed Charge Coverage Ratio (2)	  	 	1.50	  	  	 	5.03        	  	
 
Maximum Secured Indebtedness Ratio	  	 	0.40	  	  	 	0.28        	  	
 
Minimum Unencumbered Leverage Ratio	  	 	1.60	  	  	 	6.64        	  	
 
Minimum Unencumbered Interest Coverage Ratio (3)	  	 	1.75	  	  	 	21.04        	  	
 
Maximum Certain Permitted Investments Ratio (4)	  	 	0.35	  	  	 	0.01        	  	

 
(1) Debt covenant compliance calculations relate to specific calculations detailed in our line of credit agreement.	  	
 
(2) Defined as EBITDA for the trailing four quarters (including the company’s share of EBITDA from unconsolidated interests), less one-time or non-recurring gains or losses, less a $0.15 per square foot capital reserve, and excluding the impact of straight line rent leveling adjustments and amortization of intangibles divided by the company’s share of fixed charges, as more particularly described in the credit agreements. This definition of fixed charge coverage ratio as prescribed by our line of credit agreement is different from the fixed charge coverage ratio definition employed elsewhere within this report.	      	
 
(3) Defined as net operating income for the trailing four quarters for unencumbered assets (including the company’s share of net operating income from 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 (5)	  	Three months ended
June 30, 2011	  	    Six months ended    
June 30, 2011	 	  	Year ended
        December 31, 2010        	 	
 
Net debt to core EBITDA	  	4.7 x	  	 	4.6 x    	  	  	 	3.8 x	  	
 
Fixed charge coverage ratio (6)	  	4.4 x	  	 	4.8 x    	  	  	 	4.9 x	  	
 
Interest coverage ratio (7)	  	4.4 x	  	 	4.8 x    	  	  	 	4.9 x	  	

 
(5) The change in Piedmont’s debt coverage ratios in 2011 as compared to those for the year ended December 31, 2010, is primarily attributable to the increased debt load associated with 500 West Monroe Street, amounting to $185 million, and the interest expense associated therewith.	    	
 
(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 the periods ended June 30, 2011 and December 31, 2010.	    	
 
(7) 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 June 30, 2011 and December 31, 2010.

19

Piedmont Office Realty Trust, Inc.
Tenant Diversification (1)
As of June 30, 2011
(in thousands except for number of properties)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
  	  	Credit Rating (2)	 	Number of
Properties	 	Lease
Expiration(s)  (3)	 	Annualized Lease
Revenue	 	Percentage of
Annualized Lease
Revenue (%)	 	Leased Square
Footage	 	Percentage of
Leased Square
Footage (%)	
U.S. Government	  	AA+ / Aaa	 	10	 	(4)	 	$76,242	 	12.6	 	1,789	 	9.5	
BP (5)	  	A / A2	 	1	 	2013	 	31,289	 	5.2	 	776	 	4.1	
US Bancorp	  	A+ / Aa3	 	3	 	2014 / 2023 (6)	 	26,810	 	4.4	 	973	 	5.2	
Leo Burnett	  	BBB+ / Baa2	 	2	 	2019	 	26,469	 	4.4	 	682	 	3.6	
State of New York	  	AA / Aa2	 	1	 	2019	 	21,469	 	3.6	 	481	 	2.6	
Winston & Strawn	  	No rating available (7)	 	1	 	2024	 	18,300	 	3.0	 	417	 	2.2	
Sanofi-aventis	  	AA- / A2	 	2	 	2012	 	16,837	 	2.8	 	415	 	2.2	
Independence Blue Cross	  	No rating available	 	1	 	2023	 	14,571	 	2.4	 	761	 	4.0	
Nestle	  	AA / Aa1	 	1	 	2015	 	13,744	 	2.3	 	392	 	2.1	
GE	  	AA+ / Aa2	 	2	 	2012	 	11,047	 	1.8	 	333	 	1.8	
Zurich American	  	AA-	 	1	 	2011	 	10,611	 	1.8	 	300	 	1.6	
Kirkland & Ellis	  	No rating available (7)	 	1	 	2011	 	10,185	 	1.7	 	332	 	1.8	
Shaw	  	BBB- / Ba1	 	1	 	2018	 	9,782	 	1.6	 	313	 	1.7	
City of New York	  	AA / Aa2	 	1	 	2020	 	9,318	 	1.5	 	313	 	1.7	
Lockheed Martin	  	A- / Baa1	 	3	 	2014	 	9,142	 	1.5	 	284	 	1.5	
DDB Needham	  	BBB+ / Baa1	 	1	 	2018	 	8,874	 	1.5	 	246	 	1.3	
Gallagher	  	No rating available	 	1	 	2018	 	7,969	 	1.3	 	307	 	1.6	
Marsh USA	  	BBB- / Baa2	 	1	 	2011	 	7,362	 	1.2	 	173	 	0.9	
Gemini	  	A+ / Aa3	 	1	 	2013	 	7,320	 	1.2	 	205	 	1.1	
Caterpillar Financial	  	A / A2	 	1	 	2022	 	7,125	 	1.2	 	312	 	1.7	
Harvard University	  	AAA / Aaa	 	2	 	2017	 	6,600	 	1.1	 	105	 	0.6	
KeyBank	  	A- / A3	 	2	 	2016	 	6,393	 	1.1	 	210	 	1.1	
Other	  	 	 	 	 	Various	 	245,490	 	40.8	 	8,742	 	46.1	
Total	  	 	 	 	 	 	 	$602,949	 	100.0	 	18,861	 	100.0	

(1) This schedule presents all tenants contributing greater than 1.0% to Annualized Lease Revenue.
(2) Credit rating may reflect credit rating of parent or guarantor. When available, both the Standard & Poor’s credit rating and the Moody’s credit rating are provided. Noteworthy credit rating changes subsequent to June 30, 2011 are reflected herein.
(3) Represents the expiration year of the majority of the square footage leased by the tenant.
(4) There are several leases with several different agencies of the U.S. Government with expiration years ranging from 2012 to 2027.
(5) Majority of space is subleased to Aon Corporation.
(6) US Bank’s lease at One & Two Meridian Crossings, representing approximately 337,000 square feet and $8.1 million of Annualized Lease Revenue, expires in 2023. US Bancorp’s lease at US Bancorp Center for 635,000 square feet, representing $18.7 million of Annualized Lease Revenue, expires in 2014.
(7) While no ratings are available for Winston & Strawn and Kirkland & Ellis, these tenants are ranked #34 and #6, respectively, in the 2011 AmLaw 100 ranking (based on 2010 financial data), a publication of The American Lawyer Magazine, which annually ranks the top-grossing and most profitable law firms.
 
20

Piedmont Office Realty Trust, Inc.
Tenant Credit Rating & Lease Distribution Information
As of June 30, 2011

 

    Tenant Credit Rating (1)	  	Annualized Lease
Revenue ($’s in
thousands)	 	  	Percentage of
    Annualized Lease    
Revenue (%)	  	  	
 
    AAA / Aaa	  	 	$83,549	  	  	13.9	  	 	
    AA / Aa	  	 	143,168	  	  	23.7	  	 	
    A / A	  	 	102,287	  	  	17.0	  	 	
    BBB / Baa	  	 	100,010	  	  	16.6	  	 	
    BB / Ba	  	 	7,507	  	  	1.2	  	 	
    B / B	  	 	22,073	  	  	3.7	  	 	
    Below	  	 	0	  	  	0.0	  	 	
    Not rated (2)	  	 	144,355	  	  	23.9	  	 	
 	  	 	 	 	  	 	  	 	
    Total	  	 	$602,949	  	  	100.0	  	 	
 	  	 	 	 	  	 	  	 	
Lease Distribution
As of June 30, 2011

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

2,500 or Less	 	170	 	33.6	 	 	$15,921	  	 	2.6	 	133	 	0.7	
2,501 - 10,000	 	132	 	26.1	 	 	24,061	  	 	4.0	 	698	 	3.7	
10,001 - 20,000	 	60	 	11.9	 	 	27,282	  	 	4.5	 	876	 	4.6	
20,001 - 40,000	 	57	 	11.3	 	 	50,908	  	 	8.4	 	1,639	 	8.7	
40,001 - 100,000	 	32	 	6.3	 	 	58,930	  	 	9.8	 	2,047	 	10.9	
Greater than 100,000	 	55	 	10.8	 	 	425,847	  	 	70.7	 	13,468	 	71.4	
 	
Total	 	506	 	100.0	 	 	$602,949	  	 	100.0	 	18,861	 	100.0	

 
(1) Credit rating may reflect credit rating of parent or guarantor. Where differences exist between the Standard & Poor’s credit rating for a tenant and the Moody’s credit rating for a tenant, the higher credit rating is selected for this analysis.
(2) The classification of a tenant as “not rated” does not indicate that the tenant is of poor credit quality, but rather that the tenant or the tenant’s debt, if any, is not rated. Included in this category are such tenants as Winston & Strawn, Independence Blue Cross, McKinsey & Company and KPMG.
 
21

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

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

 	 	Three Months Ended June 30, 2011	 	    	Three Months Ended June 30, 2010	 	
 	 	Leased Square
Footage	 	 	Rentable Square
Footage	 	 	Percent Leased (1)	 	    	Leased Square
Footage	 	 	Rentable Square
Footage	 	 	Percent Leased (1)	 	
 	 	 	 	 	    	 	 	 	
As of March 31, 20xx	 	 	18,773	  	 	 	21,516	  	 	 	87.3%	  	    	 	18,116	  	 	 	20,230	  	 	 	89.6%	  	
 	 	 	 	 	 	 	
New leases	 	 	1,018	  	 	 	 	 	 	 	 	 	    	 	618	  	 	 	 	 	 	 	 	 	
Expired leases	 	 	(1,075	) 	 	 	 	 	 	 	 	 	    	 	(537	) 	 	 	 	 	 	 	 	 	
Other	 	 	(2	) 	 	 	11	  	 	 	 	 	    	 	1	  	 	 	44	  	 	 	 	 	

Subtotal	 	 	18,714	  	 	 	21,527	  	 	 	86.9%	  	    	 	18,198	  	 	 	20,274	  	 	 	89.8%	  	
 	 	 	 	 	 	 	
Acquisitions during period	 	 	147	  	 	 	290	  	 	 	 	 	    	 	-     	  	 	 	-     	  	 	 	 	 	
Dispositions during period	 	 	-     	  	 	 	-     	  	 	 	 	 	    	 	-     	  	 	 	-     	  	 	 	 	 	
As of June 30, 20xx (2) (3) (4)	 	 	18,861	  	 	 	21,817	  	 	 	86.5%	  	    	 	18,198	  	 	 	20,274	  	 	 	89.8%	  	

 	 	Six Months Ended June 30, 2011	 	    	Six Months Ended June 30, 2010	 	
 	 	Leased Square
Footage	 	 	Rentable Square
Footage	 	 	Percent Leased (1)	 	    	Leased Square
Footage	 	 	Rentable Square
Footage	 	 	Percent Leased (1)	 	
 	 	 	 	 	    	 	 	 	
As of December 31, 20xx	 	 	18,214	  	 	 	20,408	  	 	 	89.2%	  	    	 	18,221	  	 	 	20,229	  	 	 	90.1%	  	
New leases	 	 	1,814	  	 	 	 	 	 	 	 	 	    	 	1,153	  	 	 	 	 	 	 	 	 	
Expired leases	 	 	(1,979	) 	 	 	 	 	 	 	 	 	    	 	(1,177	) 	 	 	 	 	 	 	 	 	
Other	 	 	(3	) 	 	 	7	  	 	 	 	 	    	 	1	  	 	 	45	  	 	 	 	 	

Subtotal	 	 	18,046	  	 	 	20,415	  	 	 	88.4%	  	    	 	18,198	  	 	 	20,274	  	 	 	89.8%	  	
 	 	 	 	 	 	 	
Acquisitions during period	 	 	815	  	 	 	1,402	  	 	 	 	 	    	 	-     	  	 	 	-     	  	 	 	 	 	
Dispositions during period	 	 	-     	  	 	 	-     	  	 	 	 	 	    	 	-     	  	 	 	-     	  	 	 	 	 	
 	 	 	 	 	 	 	
As of June 30, 20xx (2) (3) (4)	 	 	18,861	  	 	 	21,817	  	 	 	86.5%	  	    	 	18,198	  	 	 	20,274	  	 	 	89.8%	  	
 	 	 	 	 	 	 	
Same Store Analysis	 	 	 	 	 	 	 	 	 	 	 	 	    	 	 	 	 	 	 	 	 	 	 	 	
Less acquisitions/dispositions after June 30, 2010 (5) (6)	 	 	(1,183	) 	 	 	(1,928	) 	 	 	61.4%	  	    	 	(410	) 	 	 	(410	) 	 	 	100.0%	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	    	 	 	 	 	 	 	 	 	 	 	 	
Same Store Total	 	 	17,678	  	 	 	19,889	  	 	 	88.9%	  	    	 	17,788	  	 	 	19,864	  	 	 	89.5%	  	

Stabilized Portfolio Analysis	 	 	 	 	 	 	 	 	 	 	 	 	    	 	 	 	 	 	 	 	 	 	 	 	
Less value-add properties (6)	 	 	(701	) 	 	 	(1,406	) 	 	 	49.9%	  	    	 	-     	  	 	 	-     	  	 	 	0.0%	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	    	 	 	 	 	 	 	 	 	 	 	 	
Stabilized Total	 	 	18,160	  	 	 	20,411	  	 	 	89.0%	  	    	 	18,198	  	 	 	20,274	  	 	 	89.8%	  	

 
(1) Calculated as leased square footage as of period end with the addition of square footage associated with uncommenced leases for spaces vacant as of period end, divided by total rentable square footage as of period end, expressed as a percentage.
(2) The square footage associated with leases with end of period expiration dates is included in the end of the period leased square footage.
(3) End of period leased square footage for 2011 includes short-term space leased on behalf of NASA in accordance with requirements stipulated under its lease to allow it to restructure its space at Two Independence Square in Washington, DC. As of June 30, 2011, total short-term space amounts to approximately 63,000 square feet and it will be occupied until an estimated date of June 30, 2013.
(4) Excluding executed but not commenced leases for currently vacant spaces, comprising approximately 652,000 square feet, Piedmont’s physical occupancy as of June 30, 2011 was 83.5%.
(5) Dispositions completed during the previous twelve months are deducted from the previous period data and acquisitions completed during the previous twelve months are deducted from the current period data.
(6) For additional information on acquisitions/dispositions completed during the last year and value-add properties, please refer to pages 30 and 31, respectively.
 
22

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended June 30, 2011	 	
 	 	Square Feet	 	 	% of Total Signed
During Period	 	 	% of Rentable
Square Footage	 	 	% Change Cash
Rents (2)	 	 	% Change Accrual
Rents (3) (4)	 	
 	 	 	 	 	
Leases executed for spaces vacant less than one year	 	 	1,084	  	 	 	92	% 	 	 	5.0	% 	 	 	3.0	% 	 	 	5.5%	  	
 	 	 	 	 	 	
Leases executed for spaces excluded from analysis  (5)	 	 	95	  	 	 	8	% 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	
 	 	Six Months Ended June 30, 2011	 	
 	 	Square Feet	 	 	% of Total Signed
During Period	 	 	% of Rentable
Square Footage	 	 	% Change Cash
Rents (2)	 	 	% Change Accrual
Rents (3) (4)	 	
 	 	 	 	 	
Leases executed for spaces vacant less than one year	 	 	1,807	  	 	 	89	% 	 	 	8.3	% 	 	 	5.4	% 	 	 	8.6%	  	
 	 	 	 	 	 	
Leases executed for spaces excluded from analysis  (5)	 	 	215	  	 	 	11	% 	 	 	 	 	 	 	 	 	 	 	 	 	

(1) 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). Spaces that had been vacant for greater than one year were excluded from this analysis.
(2) For the purposes of this analysis, the cash rents last in effect for the previous leases were compared to the initial cash rents of the new leases in order to calculate the percentage change.
(3) For the purposes of this analysis, the accrual basis rents for the previous leases were compared to the accrual basis rents of the new leases in order to calculate the percentage change. For newly signed leases which have variations in accrual basis rents, whether because of known future expansions, contractions, lease expense recovery structure changes, or other similar reasons, the weighted average of such accrual basis rents is used for the purposes of this analysis.
(4) For leases under which a tenant may use, at its discretion, a portion of its tenant improvement allowance for expenses other than those related to improvements to its space, an assumption is made that the tenant elects to use any such portion of its tenant improvement allowance for improvements to its space prior to the commencement of its lease. This assumption is made based upon the historical tenant improvement allowance usage patterns of the Company’s tenants.
(5) Represents leases signed at our consolidated office assets that do not qualify for inclusion in the analysis primarily because the spaces for which the new leases were signed had been vacant for greater than one year. Leases signed with Piedmont entities are excluded from the analysis.
 
23

Piedmont Office Realty Trust, Inc.
Lease Expiration Schedule
As of June 30, 2011
(in thousands)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	OFFICE PORTFOLIO	 	GOVERNMENTAL ENTITIES	
 	 	Annualized Lease
Revenue (1)	 	Percentage of
Annualized Lease
Revenue (%)	 	Rentable Square
Footage	 	Percentage of
Rentable Square
Footage (%)	 	Annualized Lease
Revenue (1)	 	Percentage of
Annualized Lease
Revenue (%)	 	Percentage of
Current Year
Total Annualized
Lease Revenue
Expiring (%)	
 	 	 	 	 	
Vacant	 	$0	 	0.0	 	2,954	 	13.5	 	$0	 	0.0	 	N/A	
2011	 	29,949	 	5.0	 	850	 	3.9	 	523	 	0.1	 	1.7	
2012(2)	 	60,857	 	10.1	 	1,888	 	8.7	 	7,764	 	1.3	 	12.8	
2013	 	78,051	 	12.9	 	1,990	 	9.1	 	19,518	 	3.2	 	25.0	
2014	 	51,423	 	8.5	 	1,701	 	7.8	 	3,517	 	0.6	 	6.8	
2015	 	42,579	 	7.1	 	1,524	 	7.0	 	32	 	0.0	 	0.1	
2016	 	29,687	 	4.9	 	1,100	 	5.0	 	1,440	 	0.2	 	4.9	
2017	 	31,415	 	5.2	 	1,000	 	4.6	 	1,237	 	0.2	 	3.9	
2018	 	49,235	 	8.2	 	1,639	 	7.5	 	8,647	 	1.4	 	17.6	
2019	 	64,154	 	10.6	 	1,870	 	8.6	 	21,469	 	3.6	 	33.5	
2020	 	32,034	 	5.3	 	1,165	 	5.3	 	11,944	 	2.0	 	37.3	
2021	 	14,319	 	2.4	 	558	 	2.6	 	1,025	 	0.2	 	7.2	
2022	 	17,335	 	2.9	 	708	 	3.2	 	0	 	0.0	 	0.0	
2023	 	25,623	 	4.2	 	1,183	 	5.4	 	0	 	0.0	 	0.0	
2024	 	25,706	 	4.3	 	576	 	2.6	 	0	 	0.0	 	0.0	
Thereafter	 	50,582	 	8.4	 	1,111	 	5.2	 	30,276	 	5.0	 	59.9	
 	 	 	 	 	
Total / Weighted Average	 	$602,949	 	100.0	 	21,817	 	100.0	 	$107,392	 	17.8	 	 	

 
 
(1) Annualized rental income associated with newly executed leases for currently occupied space is incorporated herein only at the expiration date for the current lease. Annualized rental income associated with such new leases is removed from the expiry year of the current lease and added to the expiry year of the new lease. These adjustments effectively incorporate known roll ups and roll downs into the expiration schedule.
(2) Leases and other revenue-producing agreements on a month-to-month basis, aggregating 30,839 square feet and Annualized Lease Revenue of $642,662, are assigned a lease expiration date of a year and a day beyond the period end date.
 
24

Piedmont Office Realty Trust, Inc.
Annual Lease Expirations
As of June 30, 2011
(in thousands)

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

Atlanta	 	97	 	$2,100	 	39	 	$720	 	37	 	$980	 	28	 	$576	 	0	 	$0	
Austin	 	0	 	0	 	0	 	0	 	0	 	0	 	0	 	0	 	0	 	0	
Boston	 	0	 	0	 	7	 	336	 	0	 	31	 	27	 	1,884	 	133	 	2,610	
Central & South Florida	 	16	 	435	 	4	 	107	 	8	 	215	 	18	 	452	 	6	 	138	
Chicago	 	539	 	19,999	 	450	 	14,872	 	805	 	31,508	 	34	 	1,317	 	202	 	5,611	
Cleveland	 	0	 	0	 	112	 	1,890	 	14	 	340	 	0	 	0	 	0	 	0	
Dallas	 	23	 	517	 	104	 	2,614	 	10	 	248	 	41	 	983	 	284	 	6,130	
Denver	 	0	 	0	 	0	 	0	 	0	 	0	 	0	 	0	 	0	 	0	
Detroit	 	13	 	309	 	84	 	2,261	 	136	 	3,255	 	12	 	225	 	132	 	3,872	
Houston	 	15	 	355	 	11	 	346	 	0	 	0	 	0	 	0	 	0	 	0	
Los Angeles	 	9	 	325	 	46	 	1,738	 	78	 	2,709	 	5	 	211	 	423	 	14,710	
Minneapolis	 	98	 	3,148	 	26	 	812	 	45	 	1,446	 	807	 	22,794	 	98	 	3,366	
Nashville	 	0	 	0	 	0	 	0	 	0	 	0	 	0	 	0	 	0	 	0	
New York	 	0	 	33	 	540	 	19,179	 	228	 	8,343	 	102	 	4,268	 	66	 	2,416	
Philadelphia	 	0	 	0	 	0	 	0	 	0	 	0	 	0	 	0	 	0	 	0	
Phoenix	 	0	 	0	 	0	 	0	 	0	 	0	 	0	 	0	 	132	 	1,948	
Portland	 	0	 	0	 	147	 	2,023	 	0	 	0	 	74	 	1,079	 	0	 	0	
Seattle	 	38	 	1,625	 	0	 	0	 	0	 	0	 	0	 	0	 	22	 	534	
Washington, D.C.	 	2	 	97	 	318	 	15,029	 	629	 	28,266	 	553	 	17,732	 	26	 	1,073	

Total / Weighted Average  (2)	 	850	 	$28,943	 	1,888	 	$61,927	 	1,990	 	$77,341	 	1,701	 	$51,521	 	1,524	 	$42,408	

 
 
(1) Expiring lease revenue is calculated as expiring square footage multiplied by the gross rent per square foot of the tenant currently leasing the space.
(2) Total expiring lease revenue in any given year will not tie to the expiring Annualized Lease Revenue presented on the Lease Expiration Schedule as the Lease Expiration Schedule accounts for the revenue effects of newly signed leases. Reflected herein are expiring revenues based on in place rental rates.
 
25

Piedmont Office Realty Trust, Inc.
Capital Expenditures by Type
For the quarter ended June 30, 2011
Unaudited ($ in thousands)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	For the Three Months Ended	 	  	 	
 	  	 	 	 	  	 	
 	  	6/30/2011	 	  	3/31/2011	 	  	12/31/2010	 	  	9/30/2010	 	  	6/30/2010	 	  	 	
 	  	 	 	 	  	 	
Non-incremental (1)	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	
Bldg / construction / dev	  	 	$1,577	  	  	 	$1,734	  	  	 	$3,082	  	  	 	$2,293 	  	  	 	$3,607 	  	  	 	
Tenant improvements	  	 	10,102	  	  	 	10,266	  	  	 	17,197	  	  	 	6,088 	  	  	 	2,333 	  	  	 	
Leasing costs	  	 	5,229	  	  	 	9,469	  	  	 	6,315	  	  	 	4,948 	  	  	 	3,029 	  	  	 	
 	  	 	 	 	  	 	
Total non-incremental	  	 	16,908	  	  	 	21,469	  	  	 	26,594	  	  	 	13,329 	  	  	 	8,969 	  	  	 	
 
Incremental (1)	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	
Bldg / construction / dev	  	 	721	  	  	 	923	  	  	 	1,174	  	  	 	417 	  	  	 	439 	  	  	 	
Tenant improvements	  	 	2,035	  	  	 	1,053	  	  	 	6	  	  	 	0 	  	  	 	0 	  	  	 	
Leasing costs	  	 	810	  	  	 	75	  	  	 	2,531	  	  	 	0 	  	  	 	0 	  	  	 	
 	  	 	 	 	  	 	
Total incremental
 	  	 	3,566	  	  	 	2,051	  	  	 	3,711	  	  	 	417 	  	  	 	439 	  	  	 	
 	  	 	 	 	  	 	
Total capital expenditures	  	 	            $20,474	  	  	 	            $23,520	  	  	 	            $30,305	  	  	 	            $13,746 	  	  	 	            $9,408 	  	  	 	

 	  	 	  	 	  	 	  	 	 	 	  	 	 	 	  	 	

Tenant improvement commitments (2)	  	 	 	 	  	 	 	 	  	 	
 
Tenant improvement commitments outstanding as of March 31, 2011	  	 	 	 	  	 	$131,417 	  	  	 	
New tenant improvement commitments related to leases executed during period	  	 	 	 	  	 	10,782 	  	  	 	
  Tenant improvement expenditures	  	 	(12,137)	  	  	 	 	 	  	 	
  Less: Tenant improvement expenditures fulfilled through accrued liabilities already presented on Piedmont’s balance sheet, expired commitments or other adjustments	  	 	(1,133)	  	  	 	 	 	  	 	
Tenant improvement commitments fulfilled, expired or other adjustments	  	 	 	 	  	 	(13,270) 	  	  	 	
 	  	 	  	 	  	 	  	 	 	 	  	 	 	 	  	 	
Total as of June 30, 2011	  	 	 	 	  	 	        $128,929 	  	  	 	

 
 
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 33 and 34.
(2) Commitments are unexpired contractual tenant improvement obligations for leases executed in current and prior periods that have not yet been incurred and have not otherwise been presented on Piedmont’s financial statements. The four largest commitments total approximately $70.0 million, or 54% of total outstanding commitments.
 
26

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	  	 	  	 	For the Year Ended	
 	 	 	 	For the Three Months
Ended June 30, 2011	 	For the Six Months
Ended June 30, 2011	 	2010	 	2009	 	2008	
 	 	 	 	 	 	
Renewal Leases	 	 	 	 	 	 	 	 	 	 	
 	 	Number of leases	 	13	 	21	 	37	 	34	 	34	
 	 	Square feet	 	740,590	 	1,356,383	 	1,241,481	 	1,568,895	 	967,959	
 	 	Tenant improvements per square foot (1)	 	$0.60	 	$29.60	 	$14.40	 	$12.01	 	$8.28	
 	 	Leasing commissions per square foot	 	$0.47	 	$7.56	 	$8.40	 	$5.51	 	$7.17	
 	 	Total per square foot	 	$1.07	 	$37.16	 	$22.80	 	$17.52	 	$15.45	
 	 	 	 	 	 	 	
 	 	Tenant improvements per square foot per year of lease term	 	$0.22	 	$3.63	 	$1.74	 	$1.44	 	$1.39	
 	 	Leasing commissions per square foot per year of lease term	 	$0.17	 	$0.93	 	$1.02	 	$0.66	 	$1.20	
 	 	Total per square foot per year of lease term	 	$0.39	 	$4.56	 	$2.76	 	$2.10	 	$2.59	
 	 	 	 	 	 	
New Leases	 	 	 	 	 	 	 	 	 	 	
 	 	Number of leases	 	22	 	38	 	56	 	28	 	37	
 	 	Square feet	 	438,879	 	665,810	 	866,212	 	700,295	 	747,919	
 	 	Tenant improvements per square foot (1)	 	$23.54	 	$31.93	 	$32.65	 	$45.04	 	$30.59	
 	 	Leasing commissions per square foot	 	$10.09	 	$12.08	 	$11.28	 	$17.12	 	$15.95	
 	 	Total per square foot	 	$33.63	 	$44.01	 	$43.93	 	$62.16	 	$46.54	
 	 	 	 	 	 	 	
 	 	Tenant improvements per square foot per year of lease term	 	$3.03	 	$3.95	 	$4.16	 	$4.05	 	$3.24	
 	 	Leasing commissions per square foot per year of lease term	 	$1.30	 	$1.50	 	$1.44	 	$1.54	 	$1.69	
 	 	Total per square foot per year of lease term	 	$4.33	 	$5.45	 	$5.60	 	$5.59	 	$4.93	
 	 	 	 	 	 	
Total	 	 	 	 	 	 	 	 	 	 	
 	 	Number of leases	 	35	 	59	 	93	 	62	 	71	
 	 	Square feet	 	1,179,469	 	2,022,193	 	2,107,693	 	2,269,190	 	1,715,878	
 	 	Tenant improvements per square foot (1)	 	$9.14	 	$30.36	 	$21.90	 	$22.21	 	$18.01	
 	 	Leasing commissions per square foot	 	$4.05	 	$9.05	 	$9.59	 	$9.09	 	$11.00	
 	 	Total per square foot	 	$13.19	 	$39.41	 	$31.49	 	$31.30	 	$29.01	
 	 	 	 	 	 	 	
 	 	Tenant improvements per square foot per year of lease term	 	$1.99	 	$3.74	 	$2.70	 	$2.42	 	$2.41	
 	 	Leasing commissions per square foot per year of lease term	 	$0.88	 	$1.11	 	$1.18	 	$0.99	 	$1.47	
 	 	Total per square foot per year of lease term	 	$2.87	 	$4.85	 	$3.88	 	$3.41	 	$3.88	
NOTE: This information is presented for our consolidated office assets only. Short-term leases (leases for a term of less than one year) are excluded from this information.
(1) For leases under which a tenant may use, at its discretion, a portion of its tenant improvement allowance for expenses other than those related to improvements to its space, an assumption is made that the tenant elects to use any such portion of its tenant improvement allowance for improvements to its space prior to the commencement of its lease. This assumption is made based upon the historical tenant improvement allowance usage patterns of the Company’s tenants.
 
27

Piedmont Office Realty Trust, Inc.
Geographic Diversification
As of June 30, 2011

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Location	 	Number of
Properties	 	Annualized Lease
Revenue ($’s in
thousands)	 	Percentage of
Annualized Lease
Revenue (%)	 	Rentable Square
Footage (in
Thousands)	 	Percentage of
Rentable Square
Footage (%)	 	Leased Square
Footage (in
thousands)	 	Percent Leased
(%)	

Chicago	 	7	 	$178,145	 	29.6	 	5,850	 	26.8	 	4,915	 	84.0	
Washington, D.C.	 	14	 	117,466	 	19.5	 	3,055	 	14.0	 	2,781	 	91.0	
New York	 	8	 	94,458	 	15.7	 	2,920	 	13.4	 	2,743	 	93.9	
Minneapolis	 	4	 	44,175	 	7.3	 	1,612	 	7.4	 	1,537	 	95.3	
Los Angeles	 	5	 	28,851	 	4.8	 	1,144	 	5.2	 	921	 	80.5	
Dallas	 	7	 	24,100	 	4.0	 	1,275	 	5.8	 	1,078	 	84.5	
Boston	 	4	 	20,069	 	3.3	 	583	 	2.7	 	562	 	96.4	
Detroit	 	4	 	18,788	 	3.1	 	930	 	4.3	 	810	 	87.1	
Philadelphia	 	1	 	14,571	 	2.4	 	761	 	3.5	 	761	 	100.0	
Atlanta	 	6	 	13,762	 	2.3	 	1,040	 	4.8	 	588	 	56.5	
Houston	 	2	 	10,520	 	1.7	 	463	 	2.1	 	341	 	73.7	
Nashville	 	1	 	7,125	 	1.2	 	312	 	1.4	 	312	 	100.0	
Phoenix	 	4	 	6,785	 	1.1	 	554	 	2.5	 	344	 	62.1	
Central & South Florida	 	3	 	5,781	 	1.0	 	299	 	1.4	 	250	 	83.6	
Austin	 	1	 	5,482	 	0.9	 	195	 	0.9	 	195	 	100.0	
Portland	 	4	 	4,603	 	0.8	 	325	 	1.5	 	325	 	100.0	
Cleveland	 	2	 	3,240	 	0.5	 	187	 	0.9	 	175	 	93.6	
Denver	 	1	 	2,712	 	0.4	 	156	 	0.7	 	156	 	100.0	
Seattle	 	1	 	2,316	 	0.4	 	156	 	0.7	 	67	 	42.9	

Total / Weighted Average	 	79	 	$602,949	 	100.0	 	21,817	 	100.0	 	18,861	 	86.5	

 
28

Piedmont Office Realty Trust, Inc.
Industry Diversification
As of June 30, 2011

 
 	 	 	 	 	 	 	 	 	 	 	 	 	
Industry Diversification	 	Number of
Tenants	 	Percentage of
Total Tenants
(%)	 	Annualized Lease
Revenue ($’s in
thousands)	 	Percentage of
Annualized Lease
Revenue (%)	 	Leased Square
Footage (in
thousands)	 	Percentage of
Leased Square
Footage (%)	
 	 	 	 	 	 	 	
Governmental Entity	 	7	 	1.6	 	$107,392	 	17.8	 	2,590	 	13.7	
Business Services	 	64	 	14.8	 	65,151	 	10.8	 	2,009	 	10.7	
Depository Institutions	 	13	 	3.0	 	49,625	 	8.2	 	1,707	 	9.1	
Legal Services	 	11	 	2.5	 	36,575	 	6.1	 	1,026	 	5.4	
Insurance Carriers	 	21	 	4.9	 	36,715	 	6.1	 	1,508	 	8.0	
Petroleum Refining & Related Industries	 	1	 	0.2	 	31,289	 	5.2	 	776	 	4.1	
Nondepository Credit Institutions	 	13	 	3.0	 	31,009	 	5.1	 	1,070	 	5.7	
Chemicals & Allied Products	 	7	 	1.6	 	22,866	 	3.8	 	661	 	3.5	
Engineering, Accounting, Research, Management &
Related Services	 	25	 	5.8	 	20,903	 	3.5	 	640	 	3.4	
Insurance Agents, Brokers & Services	 	9	 	2.1	 	18,961	 	3.1	 	598	 	3.2	
Communications	 	38	 	8.8	 	17,655	 	2.9	 	599	 	3.2	
Security & Commodity Brokers, Dealers,
Exchanges & Services	 	22	 	5.1	 	15,632	 	2.6	 	560	 	3.0	
Transportation Equipment	 	5	 	1.2	 	15,265	 	2.5	 	557	 	3.0	
Food & Kindred Products	 	6	 	1.4	 	14,790	 	2.5	 	433	 	2.3	
Educational Services	 	7	 	1.6	 	12,099	 	2.0	 	276	 	1.5	
Other	 	183	 	42.4	 	107,022	 	17.8	 	3,851	 	20.2	
Total	 	432	 	100.0	 	$602,949	 	100.0	 	18,861	 	100.0	

 
29

Piedmont Office Realty Trust, Inc.
Property Investment Activity
As of June 30, 2011

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Acquisitions	
Property Name	  	    Location	  	Acquisition
Date	  	Percent
Ownership
(%)	  	Year Built	  	Purchase
Price ($’s in
thousands)	  	Rentable
Square
Footage (in
thousands)	  	Percent
Leased at
Acquisition
(%)	
Suwanee Gateway One	  	Suwanee, GA	  	9/28/2010	  	100  	  	2008	  	$7,875	  	142	  	0	
Meridian Crossings	  	Richfield, MN	  	10/1/2010	  	100  	  	1997-1998	  	65,611	  	384	  	96	
1200 Enclave Parkway	  	Houston, TX	  	3/30/2011	  	100  	  	1999	  	18,500	  	150	  	18	
500 West Monroe Street (1)	  	Chicago, IL	  	3/31/2011	  	100  	  	1991	  	227,500	  	962	  	67	
The Dupree	  	Atlanta, GA	  	4/29/2011	  	100  	  	1997	  	20,450	  	138	  	83	
The Medici	  	Atlanta, GA	  	6/7/2011	  	100  	  	2008	  	13,210	  	152	  	22	

 	  	 	  	 	  	 	  	 	  	$353,146	  	1,928	  	61	

Dispositions	
Property Name	  	    Location	  	Disposition
Date	  	Percent
Ownership
(%)	  	Year Built	  	Sale Price ($’s
in thousands)	  	Rentable
Square
Footage (in
thousands)	  	Percent
Leased at
Disposition
(%)	
111 Sylvan Avenue (2)	  	Englewood Cliffs, NJ	  	12/8/2010	  	100  	  	1953-1967	  	$55,000	  	410	  	100	
14400 Hertz Quail Springs Parkway	  	Oklahoma City, OK	  	10/15/2010	  	4  	  	1997	  	5,300	  	57	  	100	
360 Interlocken Boulevard	  	Broomfield, CO	  	6/2/2011	  	4  	  	1996	  	9,150	  	52	  	100	

 	  	 	  	 	  	 	  	 	  	$69,450	  	519	  	100	

Dispositions Subsequent to Quarter End	
Property Name	  	    Location	  	Disposition
Date	  	Percent
Ownership
(%)	  	Year Built	  	Sale Price
($’s in
thousands)	  	Rentable
Square
Footage (in
thousands)	  	Percent
Leased at
Disposition
(%)	
Eastpointe Corporate Center	  	Issaquah, WA	  	7/1/2011	  	100  	  	2001	  	$32,000	  	156	  	19	
(1) Investment in this property was converted from a structured finance investment to an owned real estate asset through a UCC foreclosure of an equity ownership interest on March 31, 2011. The purchase price presented equates to the book basis for the real estate assets comprising the property.
(2) Property was to become vacant within six months of disposition.
 
30

Piedmont Office Realty Trust, Inc.
Value-Add Activity
As of June 30, 2011
 
Presented below are properties that were acquired employing a value-add strategy. Once a property acquired under a value-add strategy reaches 80% leased, it is deemed stabilized for the purposes of supplemental reporting and will be removed from the value-add classification.

Value-Add Properties	
Property Name	  	Location	  	Acquisition
Date	  	Percent
Ownership
(%)	  	Year Built	  	Purchase
Price ($’s in
thousands)	  	Rentable
Square
Footage (in
thousands)	  	Current
Percent
Leased (%)	  	Percent
Leased at
Acquisition
(%)	
Suwanee Gateway One	  	Suwanee, GA	  	9/28/2010	  	100	  	2008	  	$7,875	  	142	  	0	  	0	
1200 Enclave Parkway	  	Houston, TX	  	3/30/2011	  	100	  	1999	  	18,500	  	150	  	18	  	18	
500 West Monroe Street (1)	  	Chicago, IL	  	3/31/2011	  	100	  	1991	  	227,500	  	962	  	67	  	67	
The Medici	  	Atlanta, GA	  	6/7/2011	  	100	  	2008	  	13,210	  	152	  	22	  	22	

 	  	 	  	 	  	 	  	 	  	$267,085	  	1,406	  	50	  	50	
 	  	 	  	 	  	 	  	 	  	 	
(1) Property was acquired through the foreclosure of an equity ownership interest. While 67% leased at acquisition, the asset had near-term lease expirations comprising approximately 50% of the building’s rentable square footage.
 
31

Piedmont Office Realty Trust, Inc.
Other Investments
As of June 30, 2011

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Industrial Properties	  	Location	  	Percent
Ownership
(%)	  	Year Built	  	  	  	Real Estate
Net Book
Value ($’s in
thousands)	  	Rentable Square
Footage (in
thousands)	  	Percent
Leased (%)	
 112 Hidden Lake Circle	  	Duncan, SC	  	100  	  	1987	  	 	  	$9,705	  	313.4	  	100	
 110 Hidden Lake Circle	  	Duncan, SC	  	100  	  	1987	  	 	  	13,057	  	473.4	  	37	
 	  	 	  	 	  	 	  	 	  	 	
 	  	 	  	 	  	 	  	 	  	$22,762	  	786.8	  	62	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Unconsolidated Joint Venture Properties	  	Location	  	Percent
Ownership
(%)	  	Year Built	  	Piedmont
Share of Real
Estate Net
Book Value
($’s in
thousands)	  	Real Estate
Net Book
Value ($’s in
thousands)	  	Rentable Square
Footage (in
thousands)	  	Percent
Leased (%)	
47300 Kato Road	  	Fremont, CA	  	78  	  	1982	  	2,650	  	3,419	  	58.4	  	0	
20/20 Building	  	Leawood, KS	  	57  	  	1992	  	2,514	  	4,429	  	68.3	  	91	
4685 Investment Drive	  	Troy, MI	  	55  	  	2000	  	5,109	  	9,287	  	77.1	  	100	
5301 Maryland Way	  	Brentwood, TN	  	55  	  	1989	  	10,928	  	19,865	  	201.2	  	100	
8560 Upland Drive	  	Parker, CO	  	72  	  	2001	  	7,585	  	10,551	  	148.2	  	100	
Two Park Center	  	Hoffman Estates, IL	  	72  	  	1999	  	11,401	  	15,860	  	193.7	  	39	
 	  	 	  	 	  	 	  	 	
 	  	 	  	 	  	 	  	$40,187	  	$63,411	  	746.9	  	75	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
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	  	 	

32

Piedmont Office Realty Trust, Inc.
Supplemental Definitions
 
Included in this section are management’s statements regarding certain non-GAAP financial measures provided in this supplemental report and reasons why management believes that these measures provide useful information to investors about the Company’s financial condition and results of operations. Reconciliations of these non-GAAP measures are included within pages 36-38.
Adjusted Funds From Operations (“AFFO”): AFFO is calculated by deducting from Core FFO non-incremental capital expenditures and adding back non-cash items including non-real estate depreciation, straight lined rents and fair value lease revenue, non-cash components of interest expense and compensation expense, and by making similar adjustments for unconsolidated partnerships and joint ventures. Although AFFO may not be comparable to that of other REITs, we believe it provides a meaningful indicator of our ability to fund cash needs and to make cash distributions to equity owners. AFFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating performance to net income, as an alternative to net cash flows from operating activities or as a measure of our liquidity.
Annualized Lease Revenue (“ALR”): ALR is calculated by multiplying (i) rental payments (defined as base rent plus operating expense reimbursements, if payable by the tenant on a monthly basis under the terms of a lease that have been executed, but excluding a) rental abatements and b) rental payments related to executed but not commenced leases for space that was covered by an existing lease), by (ii) 12. In instances in which contractual rents or operating expense reimbursements are collected on an annual, semi-annual, or quarterly basis, such amounts are multiplied by a factor of 1, 2, or 4, respectively, to calculate the annualized figure. For leases that have been executed but not commenced relating to un-leased space, ALR is calculated by multiplying (i) the monthly base rental payment (excluding abatements) plus any operating expense reimbursements for the initial month of the lease term, by (ii) 12. Unless stated otherwise, this measure excludes our industrial properties and unconsolidated joint venture interests.
Core EBITDA: Core EBITDA is defined as net income before interest, taxes, depreciation and amortization and incrementally removing any impairment losses, gains or losses from sales of property, or other extraordinary items. We do not include impairment losses in this measure because we feel these types of losses create volatility in our earnings and make it difficult to determine the earnings generated by our ongoing business. We believe Core EBITDA is a reasonable measure of our liquidity. Core EBITDA is a non-GAAP financial measure and should not be viewed as an alternative measurement of cash flows from operating activities or other GAAP basis liquidity measures. Other REITs may calculate Core EBITDA differently and our calculation should not be compared to that of other REITs.
Core Funds From Operations (“Core FFO”): We calculate Core FFO by starting with FFO, as defined by NAREIT, and adjusting for certain non-recurring items such as impairment losses and other extraordinary items. Such items create significant earnings volatility. We believe Core FFO provides a meaningful measure of our operating performance and more predictability regarding future earnings potential. Core FFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating performance to net income; therefore, it should not be compared to other REITs’ equivalent to Core FFO.
Core Net Operating Income (“Core NOI”): Core NOI is defined as real estate operating income with the add-back of corporate general and administrative expense, depreciation and amortization, and casualty and impairment losses and the deduction of income and expense associated with lease terminations and income associated with property management performed by Piedmont for other organizations. We present this measure on an accrual basis and a cash basis, which eliminates the effects of straight lined rents and fair value lease revenue. The company uses this measure to assess its operating results and believes it is important in assessing operating performance. Core NOI is a non-GAAP measure which does not have any standard meaning prescribed by GAAP and therefore may not be comparable to similar measures presented by other companies.
EBITDA: EBITDA is defined as net income before interest, taxes, depreciation and amortization. We believe EBITDA is an appropriate measure of our ability to incur and service debt. EBITDA should not be considered as an alternative to cash flows from operating activities, as a measure of our liquidity or as an alternative to net income as an indicator of our operating activities. Other REITs may calculate EBITDA differently and our calculation should not be compared to that of other REITs.
Funds From Operations (“FFO”): FFO is calculated in accordance with the current National Association of Real Estate Investment Trusts (“NAREIT”) definition. NAREIT currently defines FFO as net income (computed in accordance with GAAP), excluding gains or losses from sales of property, adding back depreciation and amortization on real estate assets, and after the same adjustments for unconsolidated partnerships and joint ventures. Such factors can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates. FFO may provide valuable comparisons of operating performance between periods and with other REITs. FFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating performance to net income. We believe that FFO is a beneficial indicator of the performance of an equity REIT. However, other REITs may not define FFO in accordance with the NAREIT definition, or may interpret the current NAREIT definition differently than we do; therefore, our computation of FFO may not be comparable to that of such other REITs.
Incremental Capital Expenditures: Incremental Capital Expenditures are defined as capital expenditures of a non-recurring nature that incrementally enhance the underlying assets’ income generating capacity. Tenant improvements, leasing commissions, building capital and deferred lease incentives incurred to lease space that was dark at acquisition, improvements associated with the expansion of a building and renovations that change the underlying classification of a building are included in this measure.

 
33

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.

 
34

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	
 	 	 	
Paul Morgan	  	Anthony Paolone, CFA	  	David B. Rodgers, CFA	
Morgan Stanley	  	JP Morgan	  	RBC Capital Markets	
555 California Street, 21st Floor	  	277 Park Avenue	  	Arbor Court	
San Francisco, CA 94104	  	New York, NY 10172	  	30575 Bainbridge Road, Suite 250	
Phone: (415) 576-2627	  	Phone: (212) 622-6682	  	Solon, OH 44139	
 	  	 	  	Phone: (440) 715-2647	
 	 	 	
John J. Stewart, CFA	  	Stephen C. Swett	  	 	
Green Street Advisors	  	Morgan Keegan & Co.	  	 	
660 Newport Center Drive, Suite 800	  	535 Madison Avenue	  	 	
Newport Beach, CA 92660	  	10th Floor	  	 	
Phone: (949) 640-8780	  	New York, NY 10022	  	 	
 	  	Phone: (212) 508-7585	  	 	

 
35

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	    	Six Months Ended	 	
 	  	 6/30/2011  	 	 	3/31/2011  	 	 	12/31/2010  	 	 	9/30/2010  	 	 	6/30/2010  	 	    	6/30/2011  	 	  	6/30/2010 	 	
 	 	 	 	 	 	 	 	
Net income attributable to Piedmont	  	$	21,027  	  	 	$	33,967  	  	 	$	28,700  	  	 	$	40,584  	  	 	$	19,636  	  	    	$	54,994  	  	  	$	51,096  	  	
 	 	 	 	 	 	 	 	
Net income attributable to noncontrolling interest	  	 	121  	  	 	 	123  	  	 	 	122  	  	 	 	158  	  	 	 	125  	  	    	 	243  	  	  	 	251  	  	
Interest expense	  	 	19,313  	  	 	 	17,174  	  	 	 	17,378  	  	 	 	17,359  	  	 	 	18,933  	  	    	 	36,487  	  	  	 	38,024  	  	
Depreciation	  	 	28,047  	  	 	 	27,324  	  	 	 	26,995  	  	 	 	26,339  	  	 	 	26,050  	  	    	 	55,371  	  	  	 	52,478  	  	
Amortization	  	 	15,878  	  	 	 	12,106  	  	 	 	11,623  	  	 	 	11,119  	  	 	 	11,104  	  	    	 	27,984  	  	  	 	22,592  	  	
Impairment loss	  	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	53  	  	 	 	9,587  	  	    	 	-    	  	  	 	9,587  	  	
(Gain)/loss on sale of properties	  	 	(45) 	  	 	 	-    	  	 	 	792  	  	 	 	-    	  	 	 	-    	  	    	 	(45) 	  	  	 	-    	  	
(Gain)/loss on consolidation of VIE	  	 	388  	  	 	 	(1,920) 	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	    	 	(1,532) 	  	  	 	-    	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	    	 	 	 	  	 	 	 	
Core EBITDA	  	 	84,729  	  	 	 	88,774  	  	 	 	85,610  	  	 	 	95,612  	  	 	 	85,435  	  	    	 	173,502  	  	  	 	174,028  	  	
 	 	 	 	 	 	 	 	
General & administrative expenses	  	 	7,724  	  	 	 	6,899  	  	 	 	7,934  	  	 	 	7,001  	  	 	 	7,993  	  	    	 	14,624  	  	  	 	14,689  	  	
Management fee revenue	  	 	(363) 	  	 	 	(830) 	  	 	 	(948) 	  	 	 	(806) 	  	 	 	(705) 	  	    	 	(1,193) 	  	  	 	(1,458) 	  	
Interest and other income	  	 	253  	  	 	 	(3,460) 	  	 	 	(491) 	  	 	 	(993) 	  	 	 	(1,036) 	  	    	 	(3,206) 	  	  	 	(2,005) 	  	
Lease termination income	  	 	(1,347) 	  	 	 	(3,404) 	  	 	 	(2,589) 	  	 	 	(4,230) 	  	 	 	(479) 	  	    	 	(4,751) 	  	  	 	(975) 	  	
Lease termination expense-straight line rent & acquisition intangibles write-offs	  	 	43  	  	 	 	436  	  	 	 	461  	  	 	 	131  	  	 	 	679  	  	    	 	479  	  	  	 	746  	  	
Straight-line effects of lease revenue	  	 	(2,639) 	  	 	 	1,972  	  	 	 	(3,791) 	  	 	 	(3,053) 	  	 	 	(1,463) 	  	    	 	(667) 	  	  	 	(456) 	  	
Net effect of amortization of above/(below) market in-place lease intangibles	  	 	(1,670) 	  	 	 	(1,534) 	  	 	 	(1,457) 	  	 	 	(1,510) 	  	 	 	(1,525) 	  	    	 	(3,204) 	  	  	 	(2,952) 	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	    	 	 	 	  	 	 	 	
Core net operating income	  	 	86,730  	  	 	 	88,853  	  	 	 	84,729  	  	 	 	92,152  	  	 	 	88,899  	  	    	 	175,584  	  	  	 	181,617  	  	
 	 	 	 	 	 	 	 	
Net operating income from:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	    	 	 	 	  	 	 	 	
Acquisitions	  	 	(3,415) 	  	 	 	354  	  	 	 	881  	  	 	 	2  	  	 	 	-    	  	    	 	(3,061) 	  	  	 	-    	  	
Dispositions	  	 	-    	  	 	 	-    	  	 	 	(1,119) 	  	 	 	(1,686) 	  	 	 	(1,683) 	  	    	 	1 	  	  	 	(3,364) 	  	
Industrial properties	  	 	(242) 	  	 	 	(239) 	  	 	 	(347) 	  	 	 	(91) 	  	 	 	(91) 	  	    	 	(482) 	  	  	 	(364) 	  	
Unconsolidated joint ventures	  	 	(696) 	  	 	 	(658) 	  	 	 	(1,165) 	  	 	 	(1,217) 	  	 	 	(1,186) 	  	    	 	(1,354) 	  	  	 	(2,453) 	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	    	 	 	 	  	 	 	 	
Same Store NOI	  	$	82,377  	  	 	$	88,310  	  	 	$	82,979  	  	 	$	89,160  	  	 	$	85,939 	  	    	$	170,688  	  	  	$	175,436  	  	

36

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	    	Six Months Ended	 	
 	  	 6/30/2011  	 	 	3/31/2011  	 	 	12/31/2010  	 	 	9/30/2010	 	 	6/30/2010  	 	    	6/30/2011  	 	  	6/30/2010 	 	
 	 	 	 	 	 	 	 	
Net income attributable to Piedmont	  	$	21,027  	  	 	$	33,967  	  	 	$	28,700  	  	 	$	40,584  	  	 	$	19,636  	  	    	$	54,994  	  	  	$	51,096  	  	
 	 	 	 	 	 	 	 	
Depreciation	  	 	27,879  	  	 	 	27,154  	  	 	 	26,821  	  	 	 	26,163  	  	 	 	25,872  	  	    	 	55,033  	  	  	 	52,122  	  	
Amortization	  	 	15,878  	  	 	 	12,106  	  	 	 	11,623  	  	 	 	11,119  	  	 	 	11,104  	  	    	 	27,984  	  	  	 	22,592  	  	
(Gain)/loss on sale of properties	  	 	(45) 	  	 	 	-  	  	 	 	792  	  	 	 	-  	  	 	 	-  	  	    	 	(45) 	  	  	 	-  	  	
(Gain)/loss on consolidation of VIE	  	 	388  	  	 	 	(1,920) 	  	 	 	-  	  	 	 	-  	  	 	 	-  	  	    	 	(1,532) 	  	  	 	-  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	    	 	 	 	  	 	 	 	
Funds from operations	  	 	65,127  	  	 	 	71,307  	  	 	 	67,936  	  	 	 	77,866  	  	 	 	56,612  	  	    	 	136,434  	  	  	 	125,810  	  	
 	 	 	 	 	 	 	 	
Acquisition costs	  	 	716  	  	 	 	(26) 	  	 	 	242  	  	 	 	310  	  	 	 	48  	  	    	 	690  	  	  	 	48  	  	
Impairment loss	  	 	-  	  	 	 	-  	  	 	 	-  	  	 	 	53  	  	 	 	9,587  	  	    	 	-  	  	  	 	9,587  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	    	 	 	 	  	 	 	 	
Core funds from operations	  	 	65,843  	  	 	 	71,281  	  	 	 	68,178  	  	 	 	78,229  	  	 	 	66,247  	  	    	 	137,124  	  	  	 	135,445  	  	
 	 	 	 	 	 	 	 	
Depreciation of non real estate assets	  	 	168  	  	 	 	170  	  	 	 	173  	  	 	 	176  	  	 	 	178  	  	    	 	338  	  	  	 	357  	  	
Stock-based and other non-cash compensation expense	  	 	896  	  	 	 	968  	  	 	 	1,223  	  	 	 	1,095  	  	 	 	711  	  	    	 	1,864  	  	  	 	1,364  	  	
Deferred financing cost amortization	  	 	1,060  	  	 	 	607  	  	 	 	608  	  	 	 	607  	  	 	 	696  	  	    	 	1,667  	  	  	 	1,393  	  	
Amortization of fair market adjustments on notes payable	  	 	942  	  	 	 	-  	  	 	 	-  	  	 	 	-  	  	 	 	-    	  	    	 	942  	  	  	 	-  	  	
Straight-line effects of lease revenue	  	 	(2,596) 	  	 	 	2,237  	  	 	 	(3,456) 	  	 	 	(2,921) 	  	 	 	(784) 	  	    	 	(359) 	  	  	 	289  	  	
Amortization of lease related intangibles	  	 	(1,670) 	  	 	 	(1,362) 	  	 	 	(1,331) 	  	 	 	(1,510) 	  	 	 	(1,525) 	  	    	 	(3,033) 	  	  	 	(2,952) 	  	
Income from amortization of discount on purchase of mezzanine loans	  	 	-  	  	 	 	(484) 	  	 	 	(473) 	  	 	 	(569) 	  	 	 	(694) 	  	    	 	(484) 	  	  	 	(1,362) 	  	
Acquisition costs	  	 	(716) 	  	 	 	26  	  	 	 	(242) 	  	 	 	(310) 	  	 	 	(48) 	  	    	 	(690) 	  	  	 	(48) 	  	
Non-incremental capital expenditures	  	 	(16,908) 	  	 	 	(21,469) 	  	 	 	(26,594) 	  	 	 	(13,329) 	  	 	 	(8,969) 	  	    	 	(38,377) 	  	  	 	(18,383) 	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	    	 	 	 	  	 	 	 	
Adjusted funds from operations	  	$	47,019  	  	 	$	51,974  	  	 	$	38,086  	  	 	$	61,468  	  	 	$	55,812  	  	    	$	98,992  	  	  	$	116,103  	  	

37

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	    	Six Months Ended	 	
 	 	  6/30/2011  	 	 	  3/31/2011  	 	 	  12/31/2010  	 	 	  9/30/2010  	 	 	  6/30/2010  	 	    	  6/30/2011  	 	 	  6/30/2010  	 	
 	 	 	 	 	 	 	 	
Equity in Income of Unconsolidated JVs	 	$	338  	  	 	$	209  	  	 	$	630  	  	 	$	619  	  	 	$	647  	  	    	$	547  	  	 	$	1,384  	  	
 	 	 	 	 	 	 	 	
Interest expense	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	    	 	-    	  	 	 	-    	  	
Depreciation	 	 	300  	  	 	 	302  	  	 	 	310  	  	 	 	329  	  	 	 	337  	  	    	 	602  	  	 	 	685  	  	
Amortization	 	 	33  	  	 	 	30  	  	 	 	101  	  	 	 	101  	  	 	 	101  	  	    	 	63  	  	 	 	202  	  	
Impairment loss	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	53  	  	 	 	-    	  	    	 	-    	  	 	 	-    	  	
(Gain)/loss on sale of properties	 	 	(45)	  	 	 	-    	  	 	 	(25) 	  	 	 	-    	  	 	 	-    	  	    	 	(45) 	  	 	 	-    	  	

Core EBITDA	 	 	626  	  	 	 	541  	  	 	 	1,016  	  	 	 	1,102  	  	 	 	1,085  	  	    	 	1,167  	  	 	 	2,271  	  	
 	 	 	 	 	 	 	 	
General & administrative expenses	 	 	27  	  	 	 	75  	  	 	 	73  	  	 	 	40  	  	 	 	38  	  	    	 	102  	  	 	 	105  	  	
Interest and other income	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	    	 	-    	  	 	 	-    	  	

Core net operating income (accrual basis)	 	 	653  	  	 	 	616  	  	 	 	1,089  	  	 	 	1,142  	  	 	 	1,123  	  	    	 	1,269  	  	 	 	2,376  	  	
 	 	 	 	 	 	 	 	
Straight-line effects of lease revenue	 	 	43  	  	 	 	42  	  	 	 	77  	  	 	 	76  	  	 	 	64  	  	    	 	85  	  	 	 	80  	  	
 	 	 	 	 	 	 	 	
Net effect of amortization of above/(below) market in-place lease intangibles	 	 	-    	  	 	 	-    	  	 	 	(1) 	  	 	 	(1) 	  	 	 	(1) 	  	    	 	-    	  	 	 	(3) 	  	

Core net operating income (cash basis)	 	$	696  	  	 	$	658  	  	 	$	1,165  	  	 	$	1,217  	  	 	$	1,186  	  	    	$	1,354  	  	 	$	2,453  	  	

38

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	    	Six Months Ended	 	
 	  	    6/30/2011	 	 	3/31/2011	 	 	12/31/2010	 	 	9/30/2010	 	 	6/30/2010	 	    	6/30/2011	 	  	6/30/2010    	 	
 	 	 	 	 	 	 	 	
Revenues:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	    	 	 	 	  	 	 	 	
Rental income	  	$	372	  	 	$	373	  	 	$	1,506	  	 	$	2,236	  	 	$	2,167	  	    	$	745	  	  	$	4,437	  	
Tenant reimbursements	  	 	157	  	 	 	146	  	 	 	132	  	 	 	249	  	 	 	341	  	    	 	303	  	  	 	645	  	
Other rental income	  	 	-    	  	 	 	-    	  	 	 	1,136	  	 	 	-    	  	 	 	-    	  	    	 	-    	  	  	 	-    	  	
 	  	 	 	 	
Total revenues	  	 	529	  	 	 	519	  	 	 	2,774	  	 	 	2,485	  	 	 	2,508	  	    	 	1,048	  	  	 	5,082	  	
 	 	 	 	 	 	 	 	
Operating expenses:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	    	 	 	 	  	 	 	 	
Property operating costs	  	 	279	  	 	 	309	  	 	 	320	  	 	 	213	  	 	 	218	  	    	 	588	  	  	 	461	  	
Depreciation	  	 	24	  	 	 	107	  	 	 	141	  	 	 	208	  	 	 	344	  	    	 	130	  	  	 	945	  	
Amortization	  	 	24	  	 	 	24	  	 	 	29	  	 	 	42	  	 	 	91	  	    	 	49	  	  	 	144	  	
General and administrative	  	 	-    	  	 	 	-    	  	 	 	68	  	 	 	158	  	 	 	6	  	    	 	-    	  	  	 	16	  	
 	  	 	 	 	
Total operating expenses	  	 	327	  	 	 	440	  	 	 	558	  	 	 	621	  	 	 	659	  	    	 	767	  	  	 	1,566	  	

Operating income, excluding impairment loss	  	 	202	  	 	 	79	  	 	 	2,216	  	 	 	1,864	  	 	 	1,849	  	    	 	281	  	  	 	3,516	  	
 	 	 	 	 	 	 	 	
Other income/(expense)	  	 	(1)	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	    	 	(1)	  	  	 	-    	  	
Impairment loss	  	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	(9,587)	  	    	 	-    	  	  	 	(9,587)	  	
Gain/(loss) on sale of properties	  	 	-    	  	 	 	-    	  	 	 	(817)	  	 	 	-    	  	 	 	-    	  	    	 	-    	  	  	 	-    	  	

Income/(loss) from discontinued operations	  	$	201	  	 	$	79	  	 	$	1,399	  	 	$	1,864	  	 	$	(7,738)	  	    	$	280	  	  	$	(6,071)	  	

 
 
39

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

Certain statements contained in this supplemental package constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We intend for all such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, as applicable. Such information is subject to certain risks and uncertainties, as well as known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of our performance in future periods. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “continue” or similar words or phrases that are predictions of future events or trends and which do not relate solely to historical matters.	
 
The following are some of the factors that could cause our actual results and expectations to differ materially from those described in our forward-looking statements: our ability to successfully identify and consummate suitable acquisitions; current adverse market and economic conditions; lease terminations or lease defaults, particularly by one of our large lead tenants; the impact of competition on our efforts to renew existing leases or re-let space; changes in the economies and other conditions of the office market in general and of the specific markets in which we operate; economic and regulatory changes; additional risks and costs associated with directly managing properties occupied by government tenants; adverse market and economic conditions and related impairments to our assets, including, but not limited to, receivables, real estate assets and other intangible assets; the success of our real estate strategies and investment objectives; availability of financing; costs of complying with governmental laws and regulations; uncertainties associated with environmental and other regulatory matters; our ability to continue to qualify as a REIT under the Internal Revenue Code; the impact of outstanding or potential litigation; and other factors detailed in our most recent Annual Report on Form 10-K and other documents we file with the Securities and Exchange Commission.	
 
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this supplemental report. We cannot guarantee the accuracy of any such forward-looking statements contained in this supplemental report, and we do not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.	
 
40