UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
Form 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported):  February 8, 2017 
 
Piedmont Office Realty Trust, Inc.
(Exact name of registrant as specified in its charter)
 
Commission File Number:  001-34626

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

11695 Johns Creek Parkway
Suite 350
Johns Creek, GA 30097-1523
(Address of principal executive offices, including zip code)
 
770-418-8800
(Registrant's telephone number, including area code)
 
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[  ]   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[  ]   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[  ]   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[  ]   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 	

Item 2.02 Results of Operations and Financial Condition

On February 8, 2017, Piedmont Office Realty Trust, Inc. (the “Registrant”) issued a press release announcing its financial results for the fourth quarter 2016, as well as the year ended December 31, 2016, and published supplemental information for the fourth quarter 2016, as well as the year ended December 31, 2016, to its website. The press release and the supplemental information are attached hereto as Exhibit 99.1 and 99.2, respectively, and are incorporated herein by reference. Pursuant to the rules and regulations of the Securities and Exchange Commission, such exhibits and the information set forth therein are deemed to have been furnished and shall not be deemed to be “filed” under the Securities Exchange Act of 1934.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits:

 	 	 	
Exhibit No.	 	Description	
99.1	 	Press release dated February 8, 2017.	
 	 	 	
99.2	 	Piedmont Office Realty Trust, Inc. Quarterly Supplemental Information for the Fourth Quarter 2016.	

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)	
 	 	 	 	 	 	
Dated:	February 8, 2017	 	By:	 	/s/    Robert E. Bowers	
 	 	 	 	 	Robert E. Bowers	
 	 	 	 	 	Chief Financial Officer and Executive Vice President	

EXHIBIT INDEX

 	
 	 	 	
Exhibit No.	 	Description	
99.1	 	Press release dated February 8, 2017.	
 	 	 	
99.2	 	Piedmont Office Realty Trust, Inc. Quarterly Supplemental Information for the Fourth Quarter 2016.	

EXHIBIT 99.1

Piedmont Office Realty Trust Reports Fourth Quarter and Annual 2016 Results
ATLANTA, February 8, 2017 --Piedmont Office Realty Trust, Inc. ("Piedmont" or the "Company") (NYSE:PDM), an owner of Class A office properties in select sub-markets located primarily within eight major U.S. office markets, today announced its results for the quarter and year ended December 31, 2016.

Highlights for the Three Months and Year Ended December 31, 2016:
 	 	
•	Reported Net Income Applicable to Common Stockholders of $0.21 and $0.74 per diluted share for the quarter and year ended December 31, 2016, respectively;	
 	 	
•	Achieved Core Funds From Operations ("Core FFO") of $0.44 and $1.67 per diluted share for the quarter and year ended December 31, 2016, respectively;	
 	 	
•	Completed approximately 400,000 square feet of leasing during the fourth quarter, over half of which related to new tenants, bringing total leasing for the year to over two million square feet and year-end leased percentage to 94.2%;	
 	 	
•	Disposed of nine non-core assets during the year, including two in the fourth quarter, which generated approximately $332 million in gross sales proceeds; and	
 	 	
•	Using proceeds from the dispositions above, completed four acquisition transactions during the year, including two in the fourth quarter, in the Company's targeted office sub-markets.	

Commenting on 2016 results, Donald A. Miller, CFA, President and Chief Executive Officer, said, "We are pleased with our 2016 results from all perspectives - financial, leasing and transactional. Although net income declined due to the large gain on the sale of Aon Center last year, the fact that we are reporting approximately 4% growth in Core FFO per share, despite having been a net seller of significant assets over the last two years, is a testament to the hard work of both our leasing and transactional teams. Given a relatively low expiration schedule, the completion of two million square feet of leasing during 2016 resulted in positive net absorption for the portfolio and, combined with our net transactional activity for the year, allowed us to end the year over 94% leased.”

Results for the Quarter ended December 31, 2016

Piedmont recognized net income applicable to common stockholders for the three months ended December 31, 2016 of $30.2 million, or $0.21 per diluted share, as compared with $125.6 million, or $0.84 per diluted share, for the three months ended December 31, 2015. The three months ended December 31, 2016 included $19.7 million in gains on sale of real estate assets, whereas the fourth quarter of 2015 included $114.4 million of such gains, primarily due to the sale of our then-largest asset, Aon Center.

Funds From Operations ("FFO"), which removes the impact of the gains on sales noted above, as well as depreciation and amortization, and Core FFO, which further removes the impact of acquisition expenses,

gain/loss on settlement of swaps, and net loss from casualty events, were both $0.44 per diluted share for the three months ended December 31, 2016, as compared with $0.41 per diluted share for the quarter ended December 31, 2015.

Revenues for the three months ended December 31, 2016 were $143.9 million, as compared to $139.5 million for the same period a year ago. The increase was primarily due to net transactional activity, new leases commencing, and overall occupancy gains over the last twelve months.

Property operating costs increased from $54.7 million for the three months ended December 31, 2015 to $57.5 million for the three months ended December 31, 2016, primarily due to the asset acquisitions and occupancy gains mentioned above, partially offset by properties sold.

General and administrative expense was $5.7 million for the three months ended December 31, 2016, compared to $7.6 million for the same period in 2015, primarily as a result of decreased accruals for potential stock based compensation expense during the current period. Interest expense decreased $1.4 million for the three months ended December 31, 2016 as compared to the three months ended December 31, 2015 due to a lower average outstanding debt balance in the current quarter.

Results for the Year ended December 31, 2016

Piedmont recognized net income available to common stockholders for the year ended December 31, 2016 of $107.9 million, or $0.74 per diluted share, as compared to $173.0 million, or $1.15 per diluted share, for the year ended December 31, 2015. The 2016 results included $98.6 million, or $0.68 per diluted share, in gain on sales of real estate assets, as compared to $168.2 million, or $1.12 per diluted share, of such gains in 2015.

FFO, which removes depreciation and amortization as well as gains on sale and impairment losses, was $1.67 per diluted share for the year ended December 31, 2016, as compared to $1.59 for the year ended December 31, 2015, with the increase reflecting the commencement of several significant leases, the expiration of various operating expense abatement periods, the impact of net transactional acquisition activity during 2016 and 2015, and a reduction in interest expense as a result of lower average outstanding debt during 2016.

Core FFO, which further removes net losses and recoveries from casualty events, gain/loss on settlement of swaps, and acquisition expenses, was $1.67 per diluted share for the year ended December 31, 2016 as compared to $1.60 per diluted share for the year ended December 31, 2015 for the same reasons mentioned above.

Revenues for the year ended December 31, 2016 were $555.7 million, as compared with $584.8 million for the year ended December 31, 2015, with the decrease primarily attributable to the sale of eighteen office properties since January 1, 2015, including the sale of our then-largest asset, Aon Center, in the fourth quarter of 2015. The decrease in revenues due to the sale of assets was partially offset by the acquisition of nine office properties and the commencement of several significant new leases over the same time period.

Property operating costs decreased $23.1 million from $242.0 million for the year ended December 31, 2015 to $218.9 million for the year ended December 31, 2016, primarily as a result of the net transactional activity mentioned above.

General and administrative expenses were $29.2 million for the year ended December 31, 2016, as compared to $30.3 million for the year ended December 31, 2015, with the decrease being primarily attributable to decreased accruals for potential stock based compensation expense during the year ended December 31, 2016.

In addition, net income available to common stockholders per share, FFO per diluted share and Core FFO per diluted share for the year ended December 31, 2016 were all favorably impacted by an approximately 5 million share decrease in our weighted average shares outstanding as a result of shares repurchased pursuant to our stock repurchase program over the last two years.

Leasing Update

The Company's leasing volume for the quarter ended December 31, 2016 totaled approximately 400,000 square feet, bringing the total leasing volume for the year to over two million square feet and the Company's year end leased percentage to 94.2%, up 270 basis points from 91.5% a year ago. Leasing highlights for the fourth quarter of 2016 included: an approximately 97,000 square foot, 10-year lease expansion and extension with Children's Hospital Los Angeles at 800 North Brand Boulevard in Glendale, CA; and an approximately 65,000 square foot, 10+ year new lease with one of the nation's leading cable and broadband communications companies at 8560 Upland Drive in Englewood, CO.  

Weighted average lease term was approximately 6.9 years as of December 31, 2016. Same Store NOI (cash basis) was $272.6 million for the year ended December 31, 2016, up 4.8% compared to the prior year. Details outlining Piedmont's significant upcoming lease expirations, the status of current leasing activity, and a schedule of significant near-term abatement periods can be found in the Company's quarterly supplemental information package available at www.piedmontreit.com.

Transactional Activity

During the three months ended December 31, 2016, Piedmont sold 11695 Johns Creek Parkway, its approximately 100,000 square foot, 4-story office headquarters building located in Johns Creek, GA for $14.0 million, and Braker Pointe III, a 7-story, office building totaling approximately 196,000 square feet located in Austin, TX, for $49.3 million. The sale of Braker Pointe III completed Piedmont's exit from the Austin, TX market.

Piedmont recycled the proceeds from the Braker Pointe III sale into the purchase of 750 W. John Carpenter Freeway in Irving, TX for $49.6 million. The approximately 315,000 square foot, Class A, office building was constructed in 1999 and is 78% leased to CVS Health and IBM, with an average lease term remaining of six years. Piedmont also purchased an adjoining, developable land parcel of 3.5 acres for $1.0 million.

Also, as previously announced, early in the fourth quarter Piedmont acquired Galleria 200, an 89% leased, multi-tenant, 20-story, approximately 432,000 square-foot, office building situated on 4.9 acres within Atlanta's master-planned "Galleria" development located directly across the interstate from the new Atlanta Braves stadium, SunTrust Park, for $69.6 million. The acquisition of Galleria 200 complements Piedmont's fourth quarter 2015 acquisition of the adjacent property, Galleria 300, in the same office park.

Subsequent Event

Subsequent to quarter end, Piedmont entered into a binding contract with limited contingencies to sell Two Independence Square, its 600,000 square foot, 9-story, office building located in the Southwest submarket

of Washington, D.C. and 100% leased to the National Aeronautics and Space Administration for $359.6 million ($593 per square foot). The transaction is expected to close during the first half of 2017.

First Quarter 2017 Dividend Declaration

On February 8, 2017, the board of directors of Piedmont declared dividends for the first quarter of 2017 in the amount of $0.21 per share on its common stock to stockholders of record as of the close of business on February 24, 2017, payable on March 17, 2017.

Guidance for 2017

Based on management's expectations, the Company affirms its previously issued guidance for full-year 2017 as follows:

(in millions, except per share data)	 	Low	 	High	
Net Income	 	$105	-	$213	
Add:	 	

 	
         Depreciation	 	127	
 	 	134	
         Amortization	 	75	
 	 	76	
Less: Gain on Sale of Real Estate Assets	 	(59	)	-	(161)	
NAREIT FFO and Core FFO applicable to Common Stock	 	248	
 	 	262	
NAREIT FFO and Core FFO per diluted share	 	$1.70	-	$1.80	

These estimates reflect management's view of current market conditions and incorporate certain economic and operational assumptions and projections. Actual results could differ materially from these estimates based on a variety of factors, including those discussed under "Forward Looking Statements" below. Note that individual quarters may fluctuate on both a cash basis and an accrual basis due to lease commencements and expirations, abatement periods, the timing of repairs and maintenance, capital expenditures, capital markets activities, seasonal general and administrative expenses, 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

To supplement the presentation of the Company’s financial results prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), this release and the accompanying quarterly supplemental information as of and for the period ended December 31, 2016 contain certain financial measures that are not prepared in accordance with GAAP, including FFO, Core FFO, AFFO, Same Store NOI (cash basis), Property NOI (cash basis) and Core EBITDA. Definitions and reconciliations of each of these non-GAAP measures to their most comparable GAAP metrics are included below and in the accompanying quarterly supplemental information.
Each of the non-GAAP measures included in this release and the accompanying quarterly supplemental financial information has limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of the Company’s results calculated in accordance with GAAP. In addition, because not all companies use identical calculations, the Company’s presentation of non-GAAP measures in this release and the accompanying quarterly supplemental information may not be comparable to similarly titled measures disclosed by other companies, including other REITs. The Company may also

change the calculation of any of the non-GAAP measures included in this news release and the accompanying supplemental financial information from time to time in light of its then existing operations to include other adjustments that may affect its operations.

Conference Call Information

Piedmont has scheduled a conference call and an audio web cast for Thursday, February 9, 2017 at 10:00 A.M. Eastern time. The live audio web cast of the call may be accessed on the Company's website at www.piedmontreit.com in the Investor Relations section. Dial-in numbers are (877) 40 7-0778  for participants in the United States and Canada and (201) 689 -8565  for international participants. A replay of the conference call will be available through February 23, 2017, and may be accessed by dialing (877) 481-4010 for participants in the United States and Canada and (919) 882-2331 for international participants, followed by conference identification code  10202 . A web cast replay will also be available after the conference call in the Investor Relations section of the Company's website. During the audio web cast and conference call, the Company's management team will review fourth quarter and annual 2016 performance, discuss recent events, and conduct a question-and-answer period.

Supplemental Information

Quarterly supplemental information as of and for the period ended December 31, 2016 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 an owner, manager, developer, and operator of high-quality, Class A office properties in select submarkets located primarily within eight major U.S. office markets. Its geographically-diversified, over $5 billion portfolio is comprised of over 19 million square feet. The Company is a fully-integrated, self-managed real estate investment trust (REIT) with local management offices in each of its major markets and is investment-grade rated by Standard & Poor’s (BBB) and Moody’s (Baa2). For more information, see  www.piedmontreit.com .

Forward Looking Statements

Certain statements contained in this press release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The Company intends for all such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, as applicable. Such information is subject to certain risks and uncertainties, as well as known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of the Company`s performance in future periods. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as "may," "will," "expect," "intend," "anticipate," "believe," "continue" or similar words or phrases that are predictions of future events or trends and which do not relate solely to historical matters. Examples of such statements in this press release include the Company's estimated range of Net Income, Depreciation, Amortization, Gain on Sale of Real Estate Assets, NAREIT FFO/Core FFO and NAREIT FFO/Core FFO per diluted share for the year ending December 31, 2017.

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: economic, regulatory and socio-economic changes (including accounting standards) that impact the real estate market generally or that could affect the patterns of use of commercial office space; the success of our real estate strategies and investment objectives, including our ability to identify and consummate suitable acquisitions and divestitures; lease terminations or lease defaults, particularly by one of our large lead tenants; the impact of competition on our efforts to renew existing leases or re-let space on terms similar to existing leases; changes in the economies and other conditions affecting the office market in general and of the specific markets in which we operate, particularly in Washington, D.C., the New York metropolitan area, and Chicago where we have high concentrations of office properties; the illiquidity of real estate investments, including the resulting impediment on our ability to quickly respond to adverse changes in the performance of our properties; the risks and uncertainties associated with the acquisition of properties, many of which risks and other liabilities may not be known at the time of acquisition; development and construction delays and resultant increased costs and risks; our real estate development strategies may not be successful; future terrorist attacks in the major metropolitan areas in which we own properties; additional risks and costs associated with directly managing properties occupied by government tenants; the effect on us of adverse market and economic conditions, including any resulting impairment charges on both our long-lived assets or goodwill; availability of financing and our lending banks' ability to honor existing line of credit commitments; costs of complying with governmental laws and regulations; the effect of future offerings of debt or equity securities or changes in market interest rates on the value of our common stock; uncertainties associated with environmental and other regulatory matters; potential changes in political environment and reduction in federal and/or state funding of our governmental tenants; any change in the financial condition of any of our large lead tenants; the effect of any litigation to which we are, or may become, subject; changes in tax laws impacting REITs and real estate in general, as well as our ability to continue to qualify as a REIT under the Internal Revenue Code; and other factors detailed in the Company`s most recent Annual Report on Form 10-K for the period ended December 31, 2015, and other documents the Company files with the Securities and Exchange Commission.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company cannot guarantee the accuracy of any such forward-looking statements contained in this press release, and the Company does not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

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

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

 	
 	 	 	 	 	 	 	 	 	
Piedmont Office Realty Trust, Inc.	 	 	 	 	
Consolidated Balance Sheets	 	 	 	 	
Unaudited (in thousands)	 	 	 	 	
 	 	December 31, 2016	 	December 31, 2015	
 	 	  	 	 	
Assets:	 	 	 	 	
Real estate assets, at cost:	 	 	 	 	
Land	 	$	669,848	
 	 	$	676,091	
 	
Buildings and improvements	 	3,871,897	
 	 	3,727,320	
 	
Buildings and improvements, accumulated depreciation	 	(944,573	)	 	(889,857	)	
Intangible lease assets	 	208,847	
 	 	177,675	
 	
Intangible lease assets, accumulated amortization	 	(109,152	)	 	(93,012	)	
Construction in progress	 	34,825	
 	 	20,975	
 	
Real estate assets held for sale, gross	 	—	
 	 	108,776	
 	
Real estate assets held for sale, accumulated depreciation and amortization	 	—	
 	 	(32,162	)	
Total real estate assets	 	3,731,692	
 	 	3,695,806	
 	
Investments in and amounts due from unconsolidated joint ventures	 	7,360	
 	 	7,577	
 	
Cash and cash equivalents	 	6,992	
 	 	5,441	
 	
Tenant receivables, net of allowance for doubtful accounts	 	26,494	
 	 	26,339	
 	
Straight line rent receivables	 	165,848	
 	 	147,393	
 	
Notes receivable	 	—	
 	 	45,400	
 	
Restricted cash and escrows	 	1,212	
 	 	5,174	
 	
Prepaid expenses and other assets	 	23,655	
 	 	24,777	
 	
Goodwill	 	180,097	
 	 	180,097	
 	
Deferred lease costs, less accumulated amortization	 	305,997	
 	 	288,041	
 	
Other assets held for sale, net	 	—	
 	 	8,490	
 	
Total assets	 	$	4,449,347	
 	 	$	4,434,535	
 	
Liabilities:	 	 	 	 	
Unsecured debt, net of discount and unamortized debt issuance costs	 	$	1,687,731	
 	 	$	1,528,221	
 	
Secured debt, net of premiums and unamortized debt issuance costs	 	332,744	
 	 	501,289	
 	
Accounts payable, accrued expenses, dividends payable, and accrued capital expenditures	 	165,410	
 	 	128,465	
 	
Deferred income	 	28,406	
 	 	27,270	
 	
Intangible lease liabilities, less accumulated amortization	 	48,005	
 	 	42,853	
 	
Interest rate swaps	 	8,169	
 	 	9,993	
 	
Total liabilities	 	2,270,465	
 	 	2,238,091	
 	
Stockholders' equity :	 	 	 	 	
Common stock	 	1,452	
 	 	1,455	
 	
Additional paid in capital	 	3,673,128	
 	 	3,669,977	
 	
Cumulative distributions in excess of earnings	 	(1,499,684	)	 	(1,477,674	)	
Other comprehensive income	 	2,104	
 	 	1,661	
 	
Piedmont stockholders' equity	 	2,177,000	
 	 	2,195,419	
 	
Non-controlling interest	 	1,882	
 	 	1,025	
 	
Total stockholders' equity	 	2,178,882	
 	 	2,196,444	
 	
Total liabilities and stockholders' equity	 	$	4,449,347	
 	 	$	4,434,535	

Number of shares of common stock outstanding as of end of period	 	145,235	
 	 	145,512	

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Piedmont Office Realty Trust, Inc.	 	 	 	 	 	 	 	
Consolidated Statements of Income	 	 	 	 	 	 	 	
Unaudited (in thousands, except for per share data)	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	
 	Three Months Ended	 	Twelve Months Ended	
 	12/31/2016	 	12/31/2015	 	12/31/2016	 	12/31/2015	
Revenues:	 	 	 	 	 	 	 	
Rental income	$	119,564	
 	 	$	115,617	
 	 	$	459,890	
 	 	$	468,872	
 	
Tenant reimbursements	23,961	
 	 	23,405	
 	 	93,961	
 	 	113,881	
 	
Property management fee revenue	386	
 	 	439	
 	 	1,864	
 	 	2,016	
 	
Total revenues	143,911	
 	 	139,461	
 	 	555,715	
 	 	584,769	
 	
Expenses:	 	 	 	 	 	 	 	
Property operating costs	57,496	
 	 	54,654	
 	 	218,934	
 	 	242,022	
 	
Depreciation	32,785	
 	 	31,033	
 	 	127,733	
 	 	134,503	
 	
Amortization	21,271	
 	 	17,240	
 	 	75,119	
 	 	60,886	
 	
Impairment loss on real estate assets	—	
 	 	—	
 	 	30,898	
 	 	40,169	
 	
General and administrative	5,726	
 	 	7,596	
 	 	29,244	
 	 	30,346	
 	
Total operating expenses	117,278	
 	 	110,523	
 	 	481,928	
 	 	507,926	
 	
Real estate operating income	26,633	
 	 	28,938	
 	 	73,787	
 	 	76,843	
 	
Other income (expense):	 	 	 	 	 	 	 	
Interest expense	(16,566	)	 	(17,978	)	 	(64,860	)	 	(73,998	)	
Other income/(expense)	454	
 	 	347	
 	 	(13	)	 	1,565	
 	
Net (loss)/recoveries from casualty events	—	
 	 	(278	)	 	34	
 	 	(278	)	
Equity in income of unconsolidated joint ventures	8	
 	 	135	
 	 	362	
 	 	553	
 	
Total other expense	(16,104	)	 	(17,774	)	 	(64,477	)	 	(72,158	)	
Income from continuing operations	10,529	
 	 	11,164	
 	 	9,310	
 	 	4,685	
 	
Discontinued operations:	 	 	 	 	 	 	 	
Operating income	—	
 	 	71	
 	 	—	
 	 	84	
 	
Gain/(loss) on sale of real estate assets	—	
 	 	1	
 	 	—	
 	 	(1	)	
Income from discontinued operations	—	
 	 	72	
 	 	—	
 	 	83	
 	
Gain on sale of real estate assets	19,652	
 	 	114,411	
 	 	98,562	
 	 	168,237	
 	
Net income	30,181	
 	 	125,647	
 	 	107,872	
 	 	173,005	
 	
Less: Net loss/(income) applicable to noncontrolling interest	8	
 	 	(3	)	 	15	
 	 	(15	)	
Net income applicable to Piedmont	$	30,189	
 	 	$	125,644	
 	 	$	107,887	
 	 	$	172,990	
 	
Weighted average common shares outstanding - diluted*	145,764	
 	 	146,014	
 	 	145,635	
 	 	150,880	
 	
Per Share Information -- diluted:	 	 	 	 	 	 	 	
Income from continuing operations and gain on sale of real estate assets	$	0.21	
 	 	$	0.84	
 	 	$	0.74	
 	 	$	1.15	
 	
Net income applicable to common stockholders	$	0.21	
 	 	$	0.84	
 	 	$	0.74	
 	 	$	1.15	

*Number of shares of common stock outstanding as of end of period	145,235	
 	 	145,512	
 	 	145,235	
 	 	145,512	

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Piedmont Office Realty Trust, Inc.	 	 	 	 	 	 	 	
Funds From Operations, Core Funds From Operations and Adjusted Funds From Operations	
Unaudited (in thousands, except for per share data)	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	
 	Three Months Ended	 	Twelve Months Ended	
 	12/31/2016	 	12/31/2015	 	12/31/2016	 	12/31/2015	
GAAP net income applicable to common stock	$	30,189	
 	 	$	125,644	
 	 	$	107,887	
 	 	$	172,990	
 	
Depreciation of real estate assets(1) (2)	32,597	
 	 	30,867	
 	 	127,129	
 	 	133,992	
 	
Amortization of lease-related costs(1)	21,259	
 	 	17,257	
 	 	75,139	
 	 	60,951	
 	
Impairment loss on real estate assets	—	
 	 	—	
 	 	30,898	
 	 	40,169	
 	
Gain on sale of real estate assets (1)	(19,652	)	 	(114,412	)	 	(98,562	)	 	(168,236	)	
NAREIT Funds From Operations applicable to common stock*	64,393	
 	 	59,356	
 	 	242,491	
 	 	239,866	
 	
Acquisition costs	4	
 	 	644	
 	 	976	
 	 	919	
 	
(Gain)/loss on settlement of swaps	—	
 	 	(94	)	 	—	
 	 	38	
 	
Net loss/(recoveries) from casualty events	—	
 	 	278	
 	 	(34	)	 	278	
 	
Core Funds From Operations applicable to common stock*	64,397	
 	 	60,184	
 	 	243,433	
 	 	241,101	
 	
Amortization of debt issuance costs, fair market adjustments on notes payable, and discount on Unsecured Senior Notes	667	
 	 	642	
 	 	2,610	
 	 	2,547	
 	
Depreciation of non real estate assets	246	
 	 	226	
 	 	841	
 	 	755	
 	
Straight-line effects of lease revenue (1)	(6,429	)	 	(4,960	)	 	(21,544	)	 	(15,734	)	
Stock-based and other non-cash compensation	284	
 	 	2,051	
 	 	5,620	
 	 	7,090	
 	
Net effect of amortization of below-market in-place lease intangibles  (1)	(1,385	)	 	(1,202	)	 	(5,065	)	 	(4,571	)	
Acquisition costs	(4	)	 	(644	)	 	(976	)	 	(919	)	
Non-incremental capital expenditures (3)	(12,135	)	 	(13,939	)	 	(35,568	)	 	(44,136	)	
Adjusted funds from operations applicable to common stock*	$	45,641	
 	 	$	42,358	
 	 	$	189,351	
 	 	$	186,133	
 	
Weighted average common shares outstanding - diluted**	145,764	
 	 	146,014	
 	 	145,635	
 	 	150,880	
 	
Funds from operations per share (diluted)	$	0.44	
 	 	$	0.41	
 	 	$	1.67	
 	 	$	1.59	
 	
Core funds from operations per share (diluted)	$	0.44	
 	 	$	0.41	
 	 	$	1.67	
 	 	$	1.60	

**Number of shares of common stock outstanding as of end of period	145,235	
 	 	145,512	
 	 	145,235	
 	 	145,512	

(1) Includes adjustments for consolidated properties and for our proportionate share of amounts attributable to unconsolidated joint ventures.
(2) Excludes depreciation of non real estate assets.
(3) Capital expenditures of a recurring nature related to tenant improvements and leasing commissions that do not incrementally enhance the underlying assets' income generating capacity. Tenant improvements, leasing commissions, building capital and deferred lease incentives incurred to lease space that was vacant at acquisition, leasing costs for spaces vacant for greater than one year, leasing costs for spaces at newly acquired properties for which in-place leases expire shortly after acquisition, improvements associated with the expansion of a building and renovations that change the underlying classification of a building are excluded from this measure.

*Definitions:

 	
Funds From Operations ("FFO"): The Company calculates FFO 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 and impairment losses, adding back depreciation and amortization on real estate assets, and after the same adjustments for unconsolidated partnerships and joint ventures. These adjustments can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates. FFO is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of the Company’s operating performance. The Company believes that FFO is helpful to investors as a supplemental performance measure because it excludes the effects of depreciation, amortization and gains or losses from sales of real estate, all of which are based on historical costs, which implicitly assumes that the value of real estate diminishes predictably over time. The Company also believes that FFO can help facilitate comparisons of operating performance between periods and with other REITs. However, other REITs may not define FFO in accordance with the NAREIT definition, or may interpret the current NAREIT definition differently than the Company; therefore, the Company’s computation of FFO may not be comparable to that of such other REITs.	
 	
Core Funds From Operations ("Core FFO"): The Company calculates Core FFO by starting with FFO, as defined by NAREIT, and adjusting for gains or losses on the extinguishment of swaps and/or debt, acquisition-related expenses and any significant non-recurring items. Core FFO is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of the Company’s operating performance. The Company believes that Core FFO is helpful to investors as a supplemental performance measure because it excludes the effects of certain items which can create significant earnings volatility, but which do not directly relate to the Company’s core business operations. As a result, the Company believes that Core FFO can help facilitate comparisons of operating performance between periods and provides a more meaningful predictor of future earnings potential. Other REITs may not define Core FFO in the same manner as the Company; therefore, the Company’s computation of Core FFO may not be comparable to that of other REITs.	
 	
Adjusted Funds From Operations ("AFFO"): The Company calculates AFFO by starting with Core FFO and adjusting for non-incremental capital expenditures and acquisition-related costs and then adding back non-cash items including: non-real estate depreciation, straight-lined rents and fair value lease adjustments, non-cash components of interest expense and compensation expense, and by making similar adjustments for unconsolidated partnerships and joint ventures. AFFO is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of the Company’s operating performance. The Company believes that AFFO is helpful to investors as a meaningful supplemental comparative performance measure of our ability to make incremental capital investments. Other REITs may not define AFFO in the same manner as the Company; therefore, the Company’s computation of AFFO may not be comparable to that of other REITs.	

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Piedmont Office Realty Trust, Inc.	 	 	 	 	 	 	 	
Core EBITDA, Property Net Operating Income, Same Store Net Operating Income	 	 	 	 	
Unaudited (in thousands)	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	
 	Three Months Ended	 	Twelve Months Ended	
 	12/31/2016	 	12/31/2015	 	12/31/2016	 	12/31/2015	
 	 	 	 	 	 	 	 	
GAAP net income applicable to common stock	$	30,189	
 	 	$	125,644	
 	 	$	107,887	
 	 	$	172,990	
 	
Net (income)/loss applicable to noncontrolling interest	(8	)	 	3	
 	 	(15	)	 	15	
 	
Interest expense	16,566	
 	 	17,978	
 	 	64,860	
 	 	73,998	
 	
Depreciation (1)	32,844	
 	 	31,093	
 	 	127,970	
 	 	134,747	
 	
Amortization (1)	21,259	
 	 	17,257	
 	 	75,139	
 	 	60,951	
 	
Acquisition costs	4	
 	 	644	
 	 	976	
 	 	919	
 	
Impairment loss on real estate assets	—	
 	 	—	
 	 	30,898	
 	 	40,169	
 	
Loss/(recovery) from casualty event	—	
 	 	278	
 	 	(34	)	 	278	
 	
Gain on sale of real estate assets (1)	(19,652	)	 	(114,412	)	 	(98,562	)	 	(168,236	)	
Core EBITDA*	81,202	
 	 	78,485	
 	 	309,119	
 	 	315,831	
 	
General & administrative expenses (1)	5,741	
 	 	7,601	
 	 	29,306	
 	 	30,388	
 	
Management fee revenue	(224	)	 	(224	)	 	(1,034	)	 	(1,115	)	
Other income (1)	(459	)	 	(992	)	 	(458	)	 	(2,484	)	
Straight line effects of lease revenue (1)	(6,429	)	 	(4,960	)	 	(21,544	)	 	(15,734	)	
Amortization of lease-related intangibles (1)	(1,385	)	 	(1,202	)	 	(5,065	)	 	(4,571	)	
Property NOI (cash basis)*	78,446	
 	 	78,708	
 	 	310,324	
 	 	322,315	
 	
   Net operating income from:	 	 	 	 	 	 	 	
Acquisitions	(9,431	)	 	(2,997	)	 	(28,140	)	 	(5,070	)	
Dispositions	(209	)	 	(10,423	)	 	(9,161	)	 	(56,276	)	
Other investments(2)	(120	)	 	(251	)	 	(461	)	 	(793	)	
Same Store NOI (cash basis)*	$	68,686	
 	 	$	65,037	
 	 	$	272,562	
 	 	$	260,176	
 	
Change period over period in Same Store NOI	5.6	%	 	N/A	
 	 	4.8	%	 	N/A	

(1) Includes amounts attributable to consolidated properties and our proportionate share of amounts attributable to unconsolidated joint ventures.
(2)Other investments consist of our investments in unconsolidated joint ventures and redevelopment and development projects.

*Definitions:

Core EBITDA: The Company calculates Core EBITDA as net income (computed in accordance with GAAP) before interest, taxes, depreciation and amortization and incrementally removing any impairment losses, gains or losses from sales of property and other significant infrequent items that create volatility within our earnings and make it difficult to determine the earnings generated by our core ongoing business. Core EBITDA is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of the Company’s operating performance. The Company believes that Core EBITDA is helpful to investors as a supplemental performance measure because it provides a metric for understanding the performance of the Company’s results from ongoing operations without taking into account the effects of non-cash expenses (such as depreciation and amortization), as well as items that are not part of normal day-to-day operations of the Company’s business. Other REITs may not define Core EBITDA in the same manner as the Company; therefore, the Company’s computation of Core EBITDA may not be comparable to that of other REITs.

Property Net Operating Income ("Property NOI"): The Company calculates Property NOI by starting with Core EBITDA and adjusting for general and administrative expense, income associated with property management performed by Piedmont for other organizations and other income or expense items for the Company, such as interest income from loan investments or costs from the pursuit of non-consummated transactions. The Company may present this measure on an accrual basis or a cash basis. When presented on a cash basis, the effects of straight lined rents and fair value lease revenue are also eliminated. Property NOI is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of the Company’s operating performance. The Company believes that Property NOI is helpful to investors as a supplemental comparative performance measure of income generated by its properties alone without the administrative overhead of the Company. Other REITs may not define Property NOI in the same manner as the Company; therefore, the Company’s computation of Property NOI may not be comparable to that of other REITs.

Same Store Net Operating Income ("Same Store NOI"): The Company calculates Same Store NOI as Property NOI attributable to the properties owned and not under development / redevelopment during the entire span of the current and prior year reporting periods. Same Store NOI also excludes amounts attributable to unconsolidated joint venture and land assets. The Company may present this measure on an accrual basis or a cash basis. When presented on a cash basis, the effects of straight lined rents and fair value lease revenue are also eliminated. Same Store NOI is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of the Company’s operating performance. The Company believes that Same Store NOI is helpful to investors as a supplemental comparative performance measure of the income generated from the same group of properties from one period to the next. Other REITs may not define Same Store NOI in the same manner as the Company; therefore, the Company’s computation of Same Store NOI may not be comparable to that of other REITs.

EXHIBIT 99.2

Quarterly Supplemental Information
December 31, 2016 

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

Piedmont Office Realty Trust, Inc.
Quarterly Supplemental Information
Index

 	
 	 	 	 	 	
 	Page	 	 	Page	
 	 	 	 	 	
Introduction	 	 	Other Investments	 	
Corporate Data	3	 	Other Investments Detail	38	
Investor Information	4	 	Supporting Information	 	
Financial Highlights	5	 	Definitions	39	
Financials	 	 	Research Coverage	40	
Balance Sheets	11	 	Non-GAAP Reconciliations & Other Detail	41	
Income Statements	12	 	Property Detail - In-Service Portfolio	45	
Key Performance Indicators	14	 	Risks, Uncertainties and Limitations	48	
Funds From Operations / Adjusted Funds From Operations	15	 	 	 	
Same Store Analysis	16	 	 	 	
Capitalization Analysis	20	 	 	 	
Debt Summary	21	 	 	 	
Debt Detail	22	 	 	 	
Debt Covenant & Ratio Analysis	23	 	 	 	
Operational & Portfolio Information - Office Investments	 	 	 	 	
Tenant Diversification	24	 	 	 	
Tenant Credit Rating & Lease Distribution Information	26	 	 	 	
Leased Percentage Information	27	 	 	 	
Rental Rate Roll Up / Roll Down Analysis	28	 	 	 	
Lease Expiration Schedule	29	 	 	 	
Quarterly Lease Expirations	30	 	 	 	
Annual Lease Expirations	31	 	 	 	
Capital Expenditures & Commitments	32	 	 	 	
Contractual Tenant Improvements & Leasing Commissions	33	 	 	 	
Geographic Diversification	34	 	 	 	
Geographic Diversification by Location Type	35	 	 	 	
Industry Diversification	36	 	 	 	
Property Investment Activity	37	 	 	 	

 	
Notice to Readers:	
Please refer to page48 for a discussion of important risks related to the business of Piedmont Office Realty Trust, Inc., as well as an investment in its securities, including risks that could cause actual results and events to differ materially from results and events referred to in the forward-looking information. Considering these risks, uncertainties, assumptions, and limitations, the forward-looking statements about leasing, financial operations, leasing prospects, etc. contained in this quarterly supplemental information report 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.	
To supplement the presentation of the Company’s financial results prepared in accordance with U.S. generally accepted accounting principles (GAAP), this report contains certain financial measures that are not prepared in accordance with GAAP, including FFO, Core FFO, AFFO, Same Store NOI, Property NOI and Core EBITDA. Definitions and reconciliations of each of these non-GAAP measures to their most comparable GAAP metrics are included beginning on page39. Each of the non-GAAP measures included in this report has limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of the Company’s results calculated in accordance with GAAP. In addition, because not all companies use identical calculations, the Company’s presentation of non-GAAP measures in this report may not be comparable to similarly titled measures disclosed by other companies, including other REITs. The Company may also change the calculation of any of the non-GAAP measures included in this report from time to time in light of its then existing operations to include other adjustments that may affect its operations.

Piedmont Office Realty Trust, Inc.
Corporate Data

Piedmont Office Realty Trust, Inc. (also referred to herein as "Piedmont" or the "Company") (NYSE: PDM) is an owner, manager, developer, and operator of high-quality, Class A office properties in select sub-markets located primarily within eight major U.S. office markets. Its geographically-diversified, over $5 billion portfolio is comprised of over 19 million square feet (as of the date of release of this report; inclusive of developments and joint ventures). The Company is a fully-integrated, self-managed real estate investment trust ("REIT") with local management offices in each of its major markets and is investment-grade rated by Standard & Poor’s and Moody’s. Piedmont is headquartered in Atlanta, GA.

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

 	 	 	 	 	 	
 	As of	 	As of	
 	December 31, 2016	 	December 31, 2015	
Number of consolidated office properties (1)	65	 	69	
Rentable square footage (in thousands) (1)	18,885	 	18,934	
Percent leased (2)	94.2	%	 	91.5	%	
Capitalization (in thousands):	 	 	 	
Total debt - principal amount outstanding (excludes premiums, discounts, and deferred financing costs)	$2,029,582	 	$2,040,970	
Equity market capitalization (3)	$3,036,870	 	$2,747,260	
Total market capitalization (3)	$5,066,452	 	$4,788,230	
Total debt / Total market capitalization (3)	40.1	%	 	42.6	%	
Average net debt to Core EBITDA	6.4 x	
 	 	6.9 x	
 	
Total debt / Total gross assets	36.9	%	 	37.5	%	
Common stock data:	 	 	 	
High closing price during quarter	$21.53	 	$19.82	
Low closing price during quarter	$18.62	 	$18.05	
Closing price of common stock at period end	$20.91	 	$18.88	
Weighted average fully diluted shares outstanding during quarter (in thousands)	145,764	 	146,014	
Shares of common stock issued and outstanding at period end (in thousands)	145,235	 	145,512	
Annual dividend per share (4)	$0.84	 	$0.84	
Rating / Outlook	 	 	 	
Standard & Poor's	BBB / Stable	
 	 	BBB / Stable	
 	
Moody's	Baa2 / Stable	
 	 	Baa2 / Stable	
 	
Employees	137	 	143	

 	
 	 	
(1)	As of December 31, 2016, our consolidated office portfolio consisted of 65 properties (exclusive of our equity interest in one property owned through an unconsolidated joint venture, two properties under development, and one property that was taken out of service for redevelopment on January 1, 2014, 3100 Clarendon Boulevard in Arlington, VA). There were no acquisitions or dispositions of office properties completed during the first quarter of 2016. During the second quarter of 2016, we sold 1055 East Colorado Boulevard, a 176,000 square foot office building located in Pasadena, CA; Fairway Center II, a 134,000 square foot office building located in Brea, CA; and 1901 Main Street, a 173,000 square foot office building located in Irvine, CA. During the third quarter of 2016, we sold 150 West Jefferson, a 490,000 square foot office building located in Detroit, MI; and 9200, 9211 and 9221 Corporate Boulevard, three office buildings totaling 340,000 square feet, located in Rockville, MD; and acquired CNL Center I and CNL Center II, two office buildings consisting of 622,000 square feet located in Orlando, FL; and One Wayside Road, a 201,000 square foot office building located in Burlington, MA. During the fourth quarter of 2016, we sold 11695 Johns Creek Parkway, a 101,000 square foot office building located in Johns Creek, GA; and Braker Pointe III, a 196,000 square foot office building located in Austin, TX; and acquired Galleria 200, a 432,000 square foot office building located in Atlanta, GA; and 750 West John Carpenter Freeway, a 315,000 square foot office building located in Irving, TX.	
(2)	Calculated as square footage associated with commenced leases plus square footage associated with uncommenced leases for vacant spaces, divided by total rentable square footage, all as of the relevant date, expressed as a percentage. This measure is presented for our consolidated office properties and excludes unconsolidated joint venture properties, two development properties, and one out of service property. Please refer to page27 for additional analyses regarding Piedmont's leased percentage.	
(3)	Reflects common stock closing price as of the end of the reporting period.	
(4)	Total of the per share dividends declared over the prior four quarters.	

3

Piedmont Office Realty Trust, Inc.
Investor Information

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

 	 	 	 	
Executive Management	
 	 	 	 	
Donald A. Miller, CFA	Robert E. Bowers	Laura P. Moon	Raymond L. Owens	
Chief Executive Officer, President	Chief Financial Officer and Executive	Chief Accounting Officer and	Co-Chief Investment Officer and Executive	
and Director	Vice President	Senior Vice President	Vice President	
 	 	 	 	
Joseph H. Pangburn	Thomas R. Prescott	Carroll A. Reddic, IV	C. Brent Smith	
Executive Vice President,	Executive Vice President,	Executive Vice President,	Co-Chief Investment Officer and Executive	
Southwest Region	Midwest Region	Real Estate Operations and Assistant	Vice President, Northeast Region	
 	 	Secretary	 	
 	 	 	 	
George Wells	Robert K. Wiberg	 	 	
Executive Vice President,	Executive Vice President,	 	 	
Southeast Region	Mid-Atlantic Region and	 	 	
 	Head of Development	 	 	
 	 	 	 	
Board of Directors	
 	 	 	 	
Michael R. Buchanan	Kelly H. Barrett	Wesley E. Cantrell	Barbara B. Lang	
Director and Chairman of the	Director	Director and Chairman of	Director	
Board of Directors	 	Governance Committee	 	
 	 	 	 	
Frank C. McDowell	Donald A. Miller, CFA	Raymond G. Milnes, Jr.	Jeffery L. Swope	
Director, Vice Chairman of the	Chief Executive Officer, President	Director and Chairman of	Director and Chairman of	
Board of Directors and Chairman	and Director	Audit Committee	Capital Committee	
of Compensation Committee	 	 	 	
 	 	 	 	
Dale H. Taysom	 	 	 	
Director	 	 	 	

 	
 	 	
Transfer Agent	Corporate Counsel	
 	 	
Computershare	King & Spalding	
P.O. Box 30170	1180 Peachtree Street, NE	
College Station, TX 77842-3170	Atlanta, GA 30309	
Phone: 866.354.3485	Phone: 404.572.4600	

4

Piedmont Office Realty Trust, Inc.
Financial Highlights
As of December 31, 2016 

Financial Results (1) 

Net income attributable to Piedmont for the quarter ended December 31, 2016 was $30.2 million, or $0.21 per share (diluted), compared to $125.6 million, or $0.84 per share (diluted), for the same quarter in 2015. Net income attributable to Piedmont for the twelve months ended December 31, 2016 was $107.9 million, or $0.74 per share (diluted), compared to $173.0 million, or $1.15 per share (diluted), for the same period in 2015. The decrease in net income attributable to Piedmont during the three months and the twelve months ended December 31, 2016 when compared to the same periods in 2015 was principally due to the net effect of gains and losses related to the disposition transactions recorded during the respective periods. The larger amount of gain on sale of real estate in 2015 was primarily attributable to the sale of Aon Center in Chicago, IL, for which the Company recorded a gain of $114.3 million during the fourth quarter of 2015.

Funds from operations (FFO) for the quarter ended December 31, 2016 was $64.4 million, or $0.44 per share (diluted), compared to $59.4 million, or $0.41 per share (diluted), for the same quarter in 2015. FFO for the twelve months ended December 31, 2016 was $242.5 million, or $1.67 per share (diluted), compared to $239.9 million, or $1.59 per share (diluted), for the same period in 2015. Since the beginning of 2015, Piedmont has sold $1.2 billion of non-core properties and has purchased $0.7 billion of strategic properties in target submarkets at higher yields. The loss in FFO contributions from sold properties was more than offset by: 1) the FFO contributions from newly acquired properties; 2) the growth in FFO attributable to the increase in the average commenced leased percentage by almost 3% from 2015 to 2016, largely related to the nearly five million square feet of leasing completed during that time; and 3) lower interest expense attributable to a reduction in the average amount of debt outstanding of approximately $300 million in 2016 when compared to 2015 related to the net disposition activity. Also contributing to the increase in FFO per share for the twelve months ended December 31, 2016 when compared to the same period in 2015 was fewer shares outstanding in 2016 as a result of the Company's stock repurchase program. Since the beginning of 2015, Piedmont repurchased 9.4 million shares (including 461,500 shares repurchased during the first quarter of 2016) at an average price of $17.66 per share.

Core funds from operations (Core FFO) for the quarter ended December 31, 2016 was $64.4 million, or $0.44 per share (diluted), compared to $60.2 million, or $0.41 per share (diluted), for the same quarter in 2015. Core FFO for the twelve months ended December 31, 2016 was $243.4 million, or $1.67 per share (diluted), compared to $241.1 million, or $1.60 per share (diluted), for the same period in 2015. Core FFO is defined as FFO with incremental adjustments for certain non-recurring items such as net insurance recoveries or losses, acquisition-related expenses (2)  and other significant non-recurring items. The increase in dollar amount of Core FFO for the three months and the twelve months ended December 31, 2016 as compared to the same periods in 2015 was primarily attributable to the items described above for changes in FFO.

Adjusted funds from operations (AFFO) for the quarter ended December 31, 2016 was $45.6 million, compared to $42.4 million for the same quarter in 2015. AFFO for the twelve months ended December 31, 2016 was $189.4 million, compared to $186.1 million for the same period in 2015. The changes in AFFO for the three months and the twelve months ended December 31, 2016 as compared to the same periods in 2015 were primarily due to the items described above for changes in FFO and Core FFO, in addition to largely offsetting differences in non-incremental capital expenditures, straight line rent adjustments, and non-cash compensation expense during the various periods presented.

The changes in per share amounts of net income attributable to Piedmont, FFO and Core FFO for the three months and the twelve months ended December 31, 2016 as compared to the same periods in 2015 were impacted by reduced weighted average shares outstanding in 2016 as a result of the Company's stock repurchase program. Since the program commenced in December 2011, Piedmont has repurchased 28.3 million shares at an average price of $17.17 per share. Since January 1, 2015, Piedmont has repurchased 9.4 million shares at an average price of $17.66 per share.

Operations and Leasing

On a square footage leased basis, our total in-service office portfolio was 94.2% leased as of December 31, 2016, as compared to 93.4% in the prior quarter and 91.5% a year earlier. Please refer to page 27 for additional leased percentage information. The changes in leased percentage are largely due to the net absorption of space in the portfolio and portfolio refinement activities. Note that the Company's reported leased percentage is anticipated to drop during the first quarter of 2017, primarily attributable to placing in service two development properties and one re-development property. As discussed below, the projects were placed in service after the end of the fourth quarter of 2016.

(1)	FFO, Core FFO and AFFO are supplemental non-GAAP financial measures. See page39 for definitions of these non-GAAP financial measures, and pages15 and41 for reconciliations of FFO, Core FFO and AFFO to Net Income.	
(2)	Piedmont early adopted the revised FASB standard on the accounting treatment of Business Combinations, which results in certain real asset transactions falling outside the scope of the standard. The result is that, in many cases, acquisition costs will be capitalized, and, therefore, will not be included in net income. In such cases, there will be no add-back of acquisition expenses to Core FFO. This revised standard is applied to transactions occurring after October 1, 2016.	

5

Within its portfolio, Piedmont has two development properties and one re-development property at December 31, 2016. The Company's two development projects are Enclave Place, a 301,000 square foot office property located in Houston, TX, and 500 TownPark, a 134,400 square foot office property located in Lake Mary, FL. Its redevelopment property is 3100 Clarendon Boulevard, a 262,000 square foot office and retail property located in Arlington, VA. For the purposes of statistical reporting throughout this supplemental report, these properties are excluded from Piedmont's operating portfolio. All three properties were placed in service on January 1, 2017 and will be included in operating portfolio statistical reporting in future periods. For additional information regarding these development projects, please refer to page 38 of this report.

The weighted average remaining lease term of our portfolio was 6.9 years(1) as of December 31, 2016 as compared to 6.7 years at December 31, 2015.

During the three months ended December 31, 2016, the Company completed 394,020 square feet of total leasing, inclusive of activity associated with our unconsolidated joint venture asset. The consolidated office portion of this total was 329,327 square feet, consisting of 166,529 square feet of new tenant leases and 162,798 square feet of renewal leases. During the twelve months ended December 31, 2016, we completed 2,021,547 square feet of total leasing, inclusive of activity associated with our unconsolidated joint venture asset. The consolidated office portion of this total was 1,956,854 square feet, consisting of 1,075,549 square feet of new tenant leases and 881,305 square feet of renewal leases. The average committed tenant improvement cost per square foot per year of lease term for new tenant leases signed at our consolidated office properties during the twelve months ended December 31, 2016 was $5.01 and the same measure for renewal leases was $1.35, resulting in a weighted average of $3.70 for all leasing activity completed during the period (see page 33).

During the three months ended December 31, 2016, we executed six leases greater than 10,000 square feet with lengths of term of more than one year at our consolidated office properties. Information on those leases is set forth below.

Tenant	Property	Property Location	Square Feet
Leased	Expiration
Year	Lease Type	
Children's Hospital Los Angeles	800 North Brand Boulevard	Glendale, CA	96,909	2026	Renewal / Expansion	
Magneti Marelli Holding USA, LLC	Auburn Hills Corporate Center	Auburn Hills, MI	17,210	2021	New	
Newell Sales & Marketing Group, Inc.	US Bancorp Center	Minneapolis, MN	16,910	2027	Renewal / Expansion	
American Road & Transportation Builders Association	One Independence Square	Washington, DC	15,093	2028	New	
Academy Mortgage Corporation	Glenridge Highlands Two	Atlanta, GA	10,667	2022	Renewal / Contraction	
Travel Leaders Group, LLC	6565 MacArthur Boulevard	Irving, TX	10,311	2022	New	

Additionally, we completed a 65,000 square foot lease with one of the nation's leading cable and broadband communications companies at 8560 Upland Drive, our unconsolidated joint venture property of which we own approximately 72%.

 	
 	 	
(1)	Remaining lease term (after taking into account leases for vacant spaces which had been executed but not commenced as of December 31, 2016) is weighted based on Annualized Lease Revenue, as defined on page39.	

6

As of December 31, 2016, there were fourtenants whose leases individually contributed greater than 1% in net Annualized Lease Revenue expiring during the eighteen month period following the end of the fourth quarter of 2016. Information regarding the leasing status of the spaces associated with these tenants' leases is presented below.

Tenant	Property	Property Location	Net
Square
Footage
Expiring	Net Percentage of
Current Quarter
Annualized Lease
Revenue Expiring
(%)	Expiration	Current Leasing Status	
Towers Watson	Arlington Gateway	Arlington, VA	123,286	1.0%	Q2 2017	The tenant will vacate upon lease expiration. The space is actively being marketed for lease.	
National Park Service	1201 Eye Street	Washington, DC	117,813	1.2%	Q3 2017	Of the 174,274 square feet currently leased to the National Park Service, 56,461 square feet have been leased to the International Food Policy Research Institute under its 101,937 square foot lease executed in 2015, leaving 117,813 square feet to be leased. The remaining available space is actively being marketed for lease.	
Gallagher	Two Pierce Place	Itasca, IL	286,892	1.5%	Q1 2018	Of the 306,890 square feet currently leased to Gallagher, approximately 20,000 square feet have been leased to CivilTech Engineering under its lease executed during the second quarter of 2016. The remaining available space is actively being marketed for lease.	
Goldman Sachs	6011 & 6031 Connection Drive	Irving, TX	234,772	1.1%	Q1 2018	Renewal discussions with the current tenant have been ongoing; however, the tenant is exploring relocation options in a different submarket. The space is actively being marketed for lease.	

Future Lease Commencements and Abatements

As of December 31, 2016, our overall leased percentage was 94.2% and our economic leased percentage was 86.7%. The difference between overall leased percentage and economic leased percentage is attributable to two factors:
 	 	
1.	leases which have been contractually entered into for currently vacant spaces but have not yet commenced (amounting to 378,452 square feet of leases as of December 31, 2016, or 2.0% of the office portfolio); and	
 	 	
2.	leases which have commenced but the tenants have not commenced paying full rent due to rental abatements (amounting to 1,222,792 square feet of leases as of December 31, 2016, or a 5.5% impact to leased percentage on an economic basis).	

The gap between reported leased percentage and economic leased percentage is anticipated to fluctuate over time as abatements associated with large leases commence and expire (see page 8 for more detail). As presented on page 8, abatements related to large leases comprising approximately 280,000 square feet will cease to be in effect at the end of the first quarter of 2017.

7

Piedmont has leases with many large corporate office space users. The average size of lease in the Company's portfolio is approximately 23,000 square feet. Due to the large size and length of term of new leases, Piedmont typically signs leases many months in advance of their anticipated lease commencement dates. Presented below is a schedule  (1)  of uncommenced leases greater than 50,000 square feet and their anticipated commencement dates. Lease renewals are excluded from this schedule.

Tenant	Property	Property Location	Square Feet
Leased	Space Status	Estimated
Commencement
Date	New /
Expansion	
salesforce.com (formerly Demandware, Inc.)	5 Wall Street	Burlington, MA	150,134	Not Vacant	Q1 2017 (22,726 SF)
Q4 2019 (75,495 SF)
Q3 2021 (51,913 SF)	New	
Continental Casualty Company	500 TownPark	Lake Mary, FL	106,420	Vacant	Q1 2017	New	
Applied Predictive Technologies, Inc.	4250 North Fairfax Drive	Arlington, VA	87,786	Partially Vacant
(82,207 vacant)	Q2 2017	New	
International Food Policy Research Institute  (2)	1201 Eye Street	Washington, DC	101,937	Partially Vacant
(45,476 vacant)	Q2 2017 / Q2 2018	New	
Motorola Solutions, Inc.	500 West Monroe Street	Chicago, IL	53,708	Vacant	Q2 2017	New	
Children's Hospital Los Angeles	800 North Brand Boulevard	Glendale, CA	50,285	Not Vacant	Q2 2021	New	

Many recently negotiated leases provide for rental abatement concessions to tenants. Rental abatements typically occur at the beginning of a new lease's term. The Company's current cash net operating income and AFFO is being negatively impacted, therefore, by the large number of recently commenced new leases. Presented below is a schedule of leases with abatements of 50,000 square feet or greater that are either currently under abatement or will be so within the next twelve months.

Tenant	Property	Property Location	Square Feet	Remaining Abatement Schedule	Lease Expiration	
United States of America
(Corporation for National and Community Service)	One Independence Square	Washington, DC	84,606	December 2015 through May 2017	Q4 2030	
District of Columbia
(Department of Disability Services)	One Independence Square	Washington, DC	101,982	June 2016 through January 2017; June 2019; June 2020	Q1 2028	
Motorola Solutions, Inc.	500 West Monroe Street	Chicago, IL	204,053	July 2016 through June 2017 (150,345 square feet)  (3)	Q2 2028	
Amazon.com	4250 North Fairfax Drive	Arlington, VA	50,492	August 2016 through March 2017	Q1 2024	
SunTrust Bank	SunTrust Center	Orlando, FL	120,000	October through December 2016 and 2017	Q3 2019	
RaceTrac Petroleum, Inc.	Galleria 200	Atlanta, GA	133,707	October 2016 through June 2017 (114,850 square feet);
July 2017 through May 2018 (133,707 square feet)	Q3 2032	
Norris, McLaughlin & Marcus	400 Bridgewater Crossing	Bridgewater, NJ	61,642	November 2016 through February 2017; October through December 2017 and 2018; November and December 2019	Q4 2029	
Continental Casualty Company	500 TownPark	Lake Mary, FL	106,420	January through May 2017	Q4 2029	
Akerman LLP	CNL Center II	Orlando, FL	55,212	January through June 2017	Q2 2027	
Mitsubishi Hitachi Power Systems	400 TownPark	Lake Mary, FL	75,321	February and March 2017 and 2018	Q1 2026	
Applied Predictive Technologies, Inc.	4250 North Fairfax Drive	Arlington, VA	87,786	June 2017 through May 2018	Q2 2028	
Convergys Customer Management Group	5601 Hiatus Road	Tamarac, FL	50,000	June through August 2017	Q3 2024	

 	
 	 	
(1)	The schedule is not specifically intended to provide details about the current population of executed but not commenced leases; it does, however, provide details for all uncommenced leases that are greater than 50,000 square feet in size and not renewals, whether or not the spaces for which the leases were signed are vacant.	
(2)	The lease will commence in phases. The first phase, consisting of the currently vacant space, will commence in the second quarter of 2017, while the second phase, consisting of the balance of the tenant's space, will commence in the second quarter of 2018.	
(3)	The tenant will not receive a rental abatement on the expansion space, which comprises the remaining 53,708 square feet under the lease.	

8

Financing and Capital Activity

Among Piedmont's stated strategic objectives is to harvest capital through the disposition of non-core assets and assets in which the Company believes values have been maximized and to use the sale proceeds to:
 	 	
•	invest in real estate assets with higher overall return prospects in selected markets in which we have, or plan to have, a significant operating presence and that otherwise meet our strategic criteria;	
 	 	
•	reduce leverage levels by repaying outstanding debt; and	
 	 	
•	repurchase Company stock.	
Information on the Company's recent accomplishments in furtherance of its strategic objectives is presented below.

Dispositions
On December 22, 2016, Piedmont completed the sale of 11695 Johns Creek Parkway, a 101,000 square foot, 91% leased, four-story office building located in Johns Creek, GA, for $14.0 million, or $139 per square foot. Piedmont recorded a $2.0 million gain on the sale of the asset.

On December 29, 2016, Piedmont completed the sale of Braker Pointe III, a 196,000 square foot, 18% leased, seven-story office building, located in Austin, TX, for $49.3 million, or $251 per square foot. The building was sold to an owner-occupant. The sale marks the Company’s exit from the Austin, TX market. The Company recorded an $18.6 million gain on the sale of the asset. Proceeds from the sale were reinvested into another Texas property, 750 West John Carpenter Freeway. Please see additional information under the Acquisitions heading below.
 
Acquisitions
On October 7, 2016, Piedmont completed the acquisition of Galleria 200, a 20-story, 89% leased, 432,000 square foot, Class A office building with an attached, seven-story, 1,277 space parking structure, located in the master-planned Galleria development in Atlanta, GA, for $69.6 million, or $161 per square foot. Together with the acquisition of Galleria 300 in 2015, the Company has built a significant presence in what is considered the best Class A office park in the Northwest submarket of Atlanta. With a deep nearby amenity base and excellent visibility and accessibility to two of Atlanta’s major thoroughfares, Interstates 75 and 285, the Galleria assets offer compelling attributes to current and prospective tenants. In addition, SunTrust Park, the new Atlanta Braves ballpark, is located directly across Interstate 285 from the Company's Galleria properties and is bringing additional retail, hotel and residential infill development to the area. The purchase was completed at an estimated discount to replacement cost of over 50%.

On November 30, 2016, Piedmont completed the purchase of 750 West John Carpenter Freeway, a 315,000 square foot, twelve-story, 78% leased, Class A office building with a five-story, 1,074 space parking structure, located in the Las Colinas submarket in Irving, TX, for $49.6 million, or $158 per square foot. The asset is a strong strategic fit for the Company in terms of physical quality, location within one of its strategic submarkets, and proximity to other Piedmont-owned Dallas assets, which will allow Piedmont to realize additional marketing and operating synergies. Piedmont also acquired the adjoining 3.5 acre land parcel for $1.0 million, adding to its well-located, developable land holdings in the Las Colinas market. The acquisition was completed with proceeds derived from the sale of Braker Pointe III in Austin, TX. Additional information on the Austin-Dallas capital recycling transactions can be found in the Investor Relations section of the Company's website.

Information regarding property transaction activity after the end of the fourth quarter of 2016 can be found under the Subsequent Events heading below.

For additional information on acquisitions and dispositions completed over the previous eighteen months, please refer to page 37.

Development
During the second quarter of 2015, Piedmont executed a 106,420(1) square foot, thirteen-year anchor-tenant lease with Continental Casualty Company at 500 TownPark in Lake Mary, FL. 500 TownPark is a 134,400 (1)  square foot, four-story office building that was constructed on a portion of the Company's 25.2 acres of developable land in Lake Mary. The building is 79% (1) leased at December 31, 2016. The construction of the building was completed ahead of schedule and on budget and the primary tenant's occupancy commenced January 1, 2017. The final development costs are anticipated to be approximately $29 million, inclusive of leasing costs. Approximately $24.0 million had been recorded in construction in progress as of December 31, 2016. The site is situated at the intersection of Interstate 4 and Highway 417 and is well located within a mixed-use development consisting of office, retail, residential and hotel properties. The Company's remaining land holdings in the master planned, multi-use development could accommodate up to 1,200,000 square feet of additional development, including up to 800,000 square feet for office use.

 	
 	 	
(1)	Please note that the measurements for the lease and the building have changed. Since the construction of the building is complete, official BOMA space measurements were taken and the results of those measurements have been included herein.	

9

In addition, the Company has two development projects that are substantially complete and in lease-up phase:
 	 	
•	3100 Clarendon Boulevard, a 262,000 square foot office and retail property located adjacent to the Clarendon Metrorail Station in Arlington, VA, which was upgraded to Class A after being occupied by a U.S. Government agency for over 15 years; and	
 	 	
•	Enclave Place, a 301,000 square foot office building located within a deed-restricted and architecturally-controlled office park in the Energy Corridor in Houston, TX.	

All three of the development properties described above were placed in service on January 1, 2017. For additional information on Piedmont's development projects, please refer to page 38.

Finance
As of December 31, 2016, our ratio of debt to total gross assets was 36.9%. This debt ratio is based on total principal amount outstanding for our various loans at December 31, 2016.
As of December 31, 2016, our average net debt to Core EBITDA ratio was 6.4 x, a decrease from 6.9 x at December 31, 2015.
Stock Repurchase Program
Since the stock repurchase program began in December 2011, Piedmont has repurchased a total of 28.3 million shares at an average price of $17.17 per share, or approximately $486.4 million in aggregate (before the consideration of transaction costs). No common stock repurchases were made during the fourth quarter of 2016. As of quarter end, Board-approved capacity remaining for additional repurchases totaled approximately $70.2 million under the stock repurchase plan. Repurchases of stock under the program will be made at the Company's discretion and will depend on market conditions, other investment opportunities and other factors that the Company deems relevant.

Dividend
On November 1, 2016, the Board of Directors of Piedmont declared a dividend for the fourth quarter of 2016 in the amount of $0.21 per common share outstanding to stockholders of record as of the close of business on November 25, 2016. The dividend was paid on January 3, 2017. The Company's dividend payout percentage (for dividends declared) for the twelve months ended December 31, 2016 was 50% of Core FFO and 64% of AFFO.

Subsequent Events

On February 6, 2017, Piedmont entered into a binding contract with limited contingencies to sell Two Independence Square, a nine-story, 100% leased, 606,000 square foot office building located in Washington, DC. The sale price is $359.6 million, or approximately $593 per square foot. The sale is anticipated to close during the first half of 2017.

On February 8, 2017, the Board of Directors of Piedmont declared a dividend for the first quarter of 2017 in the amount of $0.21 per common share outstanding to stockholders of record as of the close of business on February 24, 2017. The dividend is expected to be paid on March 17, 2017.

Guidance for 2017

The following financial guidance for calendar year 2017 is based upon management's expectations at this time.

 	Low	 	High	
 	 	 	 	
Net Income	$105 million	to	$213 million	
Add:	 	 	 	
         Depreciation	127 million	to	134 million	
         Amortization	75 million	to	76 million	
Less:	 	 	 	
         Gain on Sale of Real Estate Assets	(59) million	to	(161) million	
NAREIT Funds from Operations applicable to Common Stock and
Core Funds From Operations	$248 million	to	$262 million	
NAREIT Funds from Operations and
Core Funds from Operations per diluted share	$1.70	to	$1.80	

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

10

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

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	December 31, 2016	
 	September 30, 2016	
 	June 30, 2016	
 	March 31, 2016	
 	December 31, 2015	
Assets:	
 	 	 	 	 	 	 	 	 	
Real estate, at cost:	
 	 	 	 	 	 	 	 	 	
Land assets	$	669,848	
 	 	$	663,697	
 	 	$	656,240	
 	 	$	676,091	
 	 	$	676,091	
 	
Buildings and improvements	3,871,897	
 	 	3,829,338	
 	 	3,700,364	
 	 	3,745,466	
 	 	3,727,320	
 	
Buildings and improvements, accumulated depreciation	(944,573	)	 	(931,699	)	 	(919,863	)	 	(919,005	)	 	(889,857	)	
Intangible lease asset	208,847	
 	 	194,493	
 	 	167,702	
 	 	176,436	
 	 	177,675	
 	
Intangible lease asset, accumulated amortization	(109,152	)	 	(102,137	)	 	(95,908	)	 	(98,314	)	 	(93,012	)	
Construction in progress	34,825	
 	 	35,086	
 	 	25,187	
 	 	25,889	
 	 	20,975	
 	
Real estate assets held for sale, gross	—	
 	 	—	
 	 	103,102	
 	 	109,022	
 	 	108,776	
 	
Real estate assets held for sale, accumulated depreciation & amortization	—	
 	 	—	
 	 	(33,336	)	 	(32,479	)	 	(32,162	)	
Total real estate assets	3,731,692	
 	 	3,688,778	
 	 	3,603,488	
 	 	3,683,106	
 	 	3,695,806	
 	
Investments in and amounts due from unconsolidated joint ventures	7,360	
 	 	7,351	
 	 	7,413	
 	 	7,483	
 	 	7,577	
 	
Cash and cash equivalents	6,992	
 	 	6,032	
 	 	21,109	
 	 	4,732	
 	 	5,441	
 	
Tenant receivables, net of allowance for doubtful accounts	26,494	
 	 	24,785	
 	 	21,338	
 	 	22,040	
 	 	26,339	
 	
Straight line rent receivable	165,848	
 	 	158,811	
 	 	154,627	
 	 	155,944	
 	 	147,393	
 	
Notes receivable	—	
 	 	—	
 	 	—	
 	 	—	
 	 	45,400	
 	
Escrow deposits and restricted cash	1,212	
 	 	5,182	
 	 	10,595	
 	 	591	
 	 	5,174	
 	
Prepaid expenses and other assets	23,655	
 	 	28,744	
 	 	29,731	
 	 	24,657	
 	 	24,777	
 	
Goodwill	180,097	
 	 	180,097	
 	 	180,097	
 	 	180,097	
 	 	180,097	
 	
Interest rate swap	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	
Deferred lease costs, less accumulated amortization	305,997	
 	 	288,517	
 	 	261,340	
 	 	267,418	
 	 	288,041	
 	
Other assets held for sale	—	
 	 	—	
 	 	8,761	
 	 	8,949	
 	 	8,490	
 	
Total assets	$	4,449,347	
 	 	$	4,388,297	
 	 	$	4,298,499	
 	 	$	4,355,017	
 	 	$	4,434,535	
 	
Liabilities:	 	 	 	 	 	 	 	 	 	
Unsecured debt, net of discount	$	1,687,731	
 	 	$	1,661,066	
 	 	$	1,508,449	
 	 	$	1,626,799	
 	 	$	1,528,221	
 	
Secured debt	332,744	
 	 	333,012	
 	 	375,865	
 	 	376,119	
 	 	501,289	
 	
Accounts payable, accrued expenses, and accrued capital expenditures	165,410	
 	 	133,112	
 	 	122,387	
 	 	103,894	
 	 	128,465	
 	
Deferred income	28,406	
 	 	29,006	
 	 	24,036	
 	 	28,143	
 	 	27,270	
 	
Intangible lease liabilities, less accumulated amortization	48,005	
 	 	45,283	
 	 	38,970	
 	 	40,926	
 	 	42,853	
 	
Interest rate swaps	8,169	
 	 	17,835	
 	 	22,079	
 	 	19,473	
 	 	9,993	
 	
Notes payable and other liabilities held for sale	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	
Total liabilities	$	2,270,465	
 	 	$	2,219,314	
 	 	$	2,091,786	
 	 	$	2,195,354	
 	 	$	2,238,091	
 	
Stockholders' equity:	 	 	 	 	 	 	 	 	 	
Common stock	1,452	
 	 	1,452	
 	 	1,452	
 	 	1,451	
 	 	1,455	
 	
Additional paid in capital	3,673,128	
 	 	3,672,218	
 	 	3,671,475	
 	 	3,671,055	
 	 	3,669,977	
 	
Cumulative distributions in excess of earnings	(1,499,684	)	 	(1,499,374	)	 	(1,456,129	)	 	(1,505,704	)	 	(1,477,674	)	
Other comprehensive loss	2,104	
 	 	(7,211	)	 	(11,110	)	 	(8,168	)	 	1,661	
 	
Piedmont stockholders' equity	2,177,000	
 	 	2,167,085	
 	 	2,205,688	
 	 	2,158,634	
 	 	2,195,419	
 	
Non-controlling interest	1,882	
 	 	1,898	
 	 	1,025	
 	 	1,029	
 	 	1,025	
 	
Total stockholders' equity	2,178,882	
 	 	2,168,983	
 	 	2,206,713	
 	 	2,159,663	
 	 	2,196,444	
 	
Total liabilities, redeemable common stock and stockholders' equity	$	4,449,347	
 	 	$	4,388,297	
 	 	$	4,298,499	
 	 	$	4,355,017	
 	 	$	4,434,535	
 	
Common stock outstanding at end of period	145,235	
 	 	145,234	
 	 	145,230	
 	 	145,093	
 	 	145,512	

11

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

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	
 	 	12/31/2016	 	9/30/2016	 	6/30/2016	 	3/31/2016	 	12/31/2015	
Revenues:	 	 	 	 	 	 	 	 	 	 	
Rental income	 	$	119,564	
 	 	$	113,821	
 	 	$	111,767	
 	 	$	114,738	
 	 	$	115,617	
 	
Tenant reimbursements	 	23,961	
 	 	24,163	
 	 	23,086	
 	 	22,751	
 	 	23,405	
 	
Property management fee revenue	 	386	
 	 	501	
 	 	454	
 	 	523	
 	 	439	
 	
 	 	143,911	
 	 	138,485	
 	 	135,307	
 	 	138,012	
 	 	139,461	
 	
Expenses:	 	 	 	 	 	 	 	 	 	 	
Property operating costs	 	57,496	
 	 	54,867	
 	 	52,292	
 	 	54,279	
 	 	54,654	
 	
Depreciation	 	32,785	
 	 	31,610	
 	 	31,556	
 	 	31,782	
 	 	31,033	
 	
Amortization	 	21,271	
 	 	18,640	
 	 	17,402	
 	 	17,806	
 	 	17,240	
 	
Impairment losses on real estate assets	 	—	
 	 	22,590	
 	 	8,308	
 	 	—	
 	 	—	
 	
General and administrative	 	5,726	
 	 	7,429	
 	 	8,316	
 	 	7,773	
 	 	7,596	
 	
 	 	117,278	
 	 	135,136	
 	 	117,874	
 	 	111,640	
 	 	110,523	
 	
Real estate operating income	 	26,633	
 	 	3,349	
 	 	17,433	
 	 	26,372	
 	 	28,938	
 	
Other income / (expense):	 	 	 	 	 	 	 	 	 	 	
Interest expense	 	(16,566	)	 	(15,496	)	 	(16,413	)	 	(16,385	)	 	(17,978	)	
Other income / (expense)	 	454	
 	 	(720	)	 	(41	)	 	294	
 	 	347	
 	
Net recoveries / (loss) from casualty events and litigation settlements  (1)	 	—	
 	 	34	
 	 	—	
 	 	—	
 	 	(278	)	
Equity in income / (loss) of unconsolidated joint ventures	 	8	
 	 	128	
 	 	111	
 	 	115	
 	 	135	
 	
 	 	(16,104	)	 	(16,054	)	 	(16,343	)	 	(15,976	)	 	(17,774	)	
Income from continuing operations	 	10,529	
 	 	(12,705	)	 	1,090	
 	 	10,396	
 	 	11,164	
 	
Discontinued operations:	 	 	 	 	 	 	 	 	 	 	
Operating income, excluding impairment loss	 	—	
 	 	1	
 	 	(1	)	 	—	
 	 	71	
 	
Gain / (loss) on sale of properties	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	1	
 	
Income / (loss) from discontinued operations	 	—	
 	 	1	
 	 	(1	)	 	—	
 	 	72	
 	
Gain on sale of real estate (2)	 	19,652	
 	 	(57	)	 	78,987	
 	 	(20	)	 	114,411	
 	
Net income	 	30,181	
 	 	(12,761	)	 	80,076	
 	 	10,376	
 	 	125,647	
 	
Less: Net income attributable to noncontrolling interest	 	8	
 	 	15	
 	 	(4	)	 	(4	)	 	(3	)	
Net income attributable to Piedmont	 	$	30,189	
 	 	$	(12,746	)	 	$	80,072	
 	 	$	10,372	
 	 	$	125,644	
 	
Weighted average common shares outstanding - diluted	 	145,764	
 	 	145,669	
 	 	145,699	
 	 	145,791	
 	 	146,014	
 	
Net income per share available to common stockholders - diluted	 	$	0.21	
 	 	$	(0.09	)	 	$	0.55	
 	 	$	0.07	
 	 	$	0.84	
 	
Common stock outstanding at end of period	 	145,235	
 	 	145,234	
 	 	145,230	
 	 	145,093	
 	 	145,512	

 	
 	 	
(1)	Presented on this line are net expenses and insurance recoveries related to damage caused by Hurricane Sandy in October 2012.	
(2)	The gain on sale of real estate reflected in the fourth quarter of 2016 was primarily related to the sale of Braker Pointe III in Austin, TX, on which we recorded an $18.6 million gain. The gain in the second quarter of 2016 was primarily related to the sales of 1055 East Colorado Boulevard in Pasadena, CA, on which we recorded a $31.5 million gain; Fairway Center II in Brea, CA, on which we recorded a $15.5 million gain; and 1901 Main Street in Irvine, CA, on which we recorded a $32.0 million gain. The gain in the fourth quarter of 2015 was primarily related to the sale of Aon Center in Chicago, IL, on which we recorded a $114.3 million gain.	

12

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

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Three Months Ended	 	Twelve Months Ended	
 	12/31/2016	12/31/2015	 	Change ($)	Change (%)	 	12/31/2016	12/31/2015	 	Change ($)	Change (%)	
Revenues:	 	 	 	 	 	 	 	 	 	 	 	
Rental income	$	119,564	
 	$	115,617	
 	 	$	3,947	
 	3.4	 %	 	$	459,890	
 	$	468,872	
 	 	$	(8,982	)	(1.9	)%	
Tenant reimbursements	23,961	
 	23,405	
 	 	556	
 	2.4	 %	 	93,961	
 	113,881	
 	 	(19,920	)	(17.5	)%	
Property management fee revenue	386	
 	439	
 	 	(53	)	(12.1	)%	 	1,864	
 	2,016	
 	 	(152	)	(7.5	)%	
 	143,911	
 	139,461	
 	 	4,450	
 	3.2	 %	 	555,715	
 	584,769	
 	 	(29,054	)	(5.0	)%	
Expenses:	 	 	 	 	 	 	 	 	 	 	 	
Property operating costs	57,496	
 	54,654	
 	 	(2,842	)	(5.2	)%	 	218,934	
 	242,022	
 	 	23,088	
 	9.5	 %	
Depreciation	32,785	
 	31,033	
 	 	(1,752	)	(5.6	)%	 	127,733	
 	134,503	
 	 	6,770	
 	5.0	 %	
Amortization	21,271	
 	17,240	
 	 	(4,031	)	(23.4	)%	 	75,119	
 	60,886	
 	 	(14,233	)	(23.4	)%	
Impairment losses on real estate assets	—	
 	—	
 	 	—	
 	—	 %	 	30,898	
 	40,169	
 	 	9,271	
 	23.1	 %	
General and administrative	5,726	
 	7,596	
 	 	1,870	
 	24.6	 %	 	29,244	
 	30,346	
 	 	1,102	
 	3.6	 %	
 	117,278	
 	110,523	
 	 	(6,755	)	(6.1	)%	 	481,928	
 	507,926	
 	 	25,998	
 	5.1	 %	
Real estate operating income	26,633	
 	28,938	
 	 	(2,305	)	(8.0	)%	 	73,787	
 	76,843	
 	 	(3,056	)	(4.0	)%	
Other income / (expense):	 	 	 	 	 	 	 	 	 	 	 	
Interest expense	(16,566	)	(17,978	)	 	1,412	
 	7.9	 %	 	(64,860	)	(73,998	)	 	9,138	
 	12.3	 %	
Other income / (expense)	454	
 	347	
 	 	107	
 	30.8	 %	 	(13	)	1,565	
 	 	(1,578	)	(100.8	)%	
Net recoveries / (loss) from casualty events and litigation settlements  (1)	—	
 	(278	)	 	278	
 	100.0	 %	 	34	
 	(278	)	 	312	
 	112.2	 %	
Equity in income / (loss) of unconsolidated joint ventures	8	
 	135	
 	 	(127	)	(94.1	)%	 	362	
 	553	
 	 	(191	)	(34.5	)%	
 	(16,104	)	(17,774	)	 	1,670	
 	9.4	 %	 	(64,477	)	(72,158	)	 	7,681	
 	10.6	 %	
Income from continuing operations	10,529	
 	11,164	
 	 	(635	)	(5.7	)%	 	9,310	
 	4,685	
 	 	4,625	
 	98.7	 %	
Discontinued operations:	 	 	 	 	 	 	 	 	 	 	 	
Operating income, excluding impairment loss	—	
 	71	
 	 	(71	)	(100.0	)%	 	—	
 	84	
 	 	(84	)	(100.0	)%	
Gain / (loss) on sale of properties	—	
 	1	
 	 	(1	)	(100.0	)%	 	—	
 	(1	)	 	1	
 	100.0	 %	
Income / (loss) from discontinued operations	—	
 	72	
 	 	(72	)	(100.0	)%	 	—	
 	83	
 	 	(83	)	(100.0	)%	
Gain on sale of real estate  (2)	19,652	
 	114,411	
 	 	(94,759	)	(82.8	)%	 	98,562	
 	168,237	
 	 	(69,675	)	(41.4	)%	
Net income	30,181	
 	125,647	
 	 	(95,466	)	(76.0	)%	 	107,872	
 	173,005	
 	 	(65,133	)	(37.6	)%	
Less: Net income attributable to noncontrolling interest	8	
 	(3	)	 	11	
 	366.7	 %	 	15	
 	(15	)	 	30	
 	200.0	 %	
Net income attributable to Piedmont	$	30,189	
 	$	125,644	
 	 	$	(95,455	)	(76.0	)%	 	$	107,887	
 	$	172,990	
 	 	$	(65,103	)	(37.6	)%	
Weighted average common shares outstanding - diluted	145,764	
 	146,014	
 	 	 	 	 	145,635	
 	150,880	
 	 	 	 	
Net income per share available to common stockholders - diluted	$	0.21	
 	$	0.84	
 	 	 	 	 	$	0.74	
 	$	1.15	
 	 	 	 	
Common stock outstanding at end of period	145,235	
 	145,512	
 	 	 	 	 	145,235	
 	145,512	

 	
 	 	
(1)	Presented on this line are net expenses and insurance recoveries related to damage caused by Hurricane Sandy in October 2012.	
(2)	The gain on sale of real estate for the three months ended December 31, 2016 was primarily related to the sale of Braker Pointe III in Austin, TX, on which we recorded an $18.6 million gain. In addition to the gain attributable to the sale of Braker Pointe III, the gain on sale of real estate for the twelve months ended December 31, 2016 was primarily related to the sales in the second quarter of 2016 of 1055 East Colorado Boulevard in Pasadena, CA, on which we recorded a $31.5 million gain, Fairway Center II in Brea, CA, on which we recorded a $15.5 million gain, and 1901 Main Street in Irvine, CA, on which we recorded a $32.0 million gain. The gain on sale of real estate for the three months ended December 31, 2015 was primarily related to the sale of Aon Center in Chicago, IL, on which we recorded a $114.3 million gain. In addition to the gain attributable to the sale of Aon Center, the gain on sale of real estate for the twelve months ended December 31, 2015 was primarily related to the sale in the third quarter of 2015 of Chandler Forum in Chandler, AZ, on which we recorded a $15.5 million gain, the sales in the second quarter of 2015 of Copper Ridge Center in Lyndhurst, NJ, on which we recorded a $13.3 million gain, and 5601 Headquarters Drive in Plano, TX, on which we recorded an $8.0 million gain, and the sale in the first quarter of 2015 of 3900 Dallas Parkway in Plano, TX, on which we recorded a $10.1 million gain.

13

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 page39 and reconciliations are provided beginning on page41.	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Three Months Ended	
 	12/31/2016	 	9/30/2016	 	6/30/2016	 	3/31/2016	 	12/31/2015	 	
Selected Operating Data	 	 	 	 	 	 	 	 	 	 	
Percent leased (1)	94.2	%	 	93.4	%	 	91.4	%	 	91.7	%	 	91.5	%	 	
Percent leased - economic (1) (2)	86.7	%	 	86.7	%	 	84.8	%	 	83.0	%	 	81.8	%	 	
Rental income	$119,564	 	$113,821	 	$111,767	 	$114,738	 	$115,617	 	
Total revenues	$143,911	 	$138,485	 	$135,307	 	$138,012	 	$139,461	 	
Total operating expenses	$117,278	 	$135,136	(3) 	$117,874	(3) 	$111,640	 	$110,523	 	
Core EBITDA	$81,202	
 	$76,610	
 	$74,849	
 	$76,458	
 	$78,485	 	
Core FFO applicable to common stock	$64,397	
 	$60,913	
 	$58,258	
 	$59,865	
 	$60,184	 	
Core FFO per share - diluted	$0.44	
 	$0.42	
 	$0.40	
 	$0.41	
 	$0.41	 	
AFFO applicable to common stock	$45,641	
 	$50,484	
 	$49,676	
 	$43,550	
 	$42,358	 	
Gross dividends	$30,499	 	$30,498	 	$30,498	 	$30,463	 	$30,557	 	
Dividends per share	$0.210	 	$0.210	 	$0.210	 	$0.210	 	$0.210	 	
Selected Balance Sheet Data	 	 	 	 	 	 	 	 	 	 	
Total real estate assets	$3,731,692	
 	$3,688,778	
 	$3,603,488	
 	$3,683,106	
 	$3,695,806	 	
Total assets	$4,449,347	
 	$4,388,297	
 	$4,298,499	
 	$4,355,017	
 	$4,434,535	 	
Total liabilities	$2,270,465	
 	$2,219,314	
 	$2,091,786	
 	$2,195,354	
 	$2,238,091	 	
Ratios & Information for Debt Holders	 	 	 	 	 	 	 	 	 	 	
Core EBITDA margin (4)	56.4	%	 	55.3	%	 	55.3	%	 	55.4	%	 	56.3	%	 	
Fixed charge coverage ratio (5)	4.5 x	
 	 	4.4 x	
 	 	4.3 x	
 	 	4.3 x	
 	 	4.1 x	
 	 	
Average net debt to Core EBITDA  (6)	6.4 x	
 	 	6.4 x	
 	 	6.3 x	
 	 	6.6 x	
 	 	6.9 x	
 	 	
Total gross real estate assets	$4,785,417	 	$4,722,614	 	$4,652,595	 	$4,732,904	 	$4,710,837	 	
Net debt (7)	$2,021,378	 	$1,992,588	 	$1,862,912	 	$2,008,507	 	$2,030,355	 	

 	 	
(1)	Please refer to page27 for additional leased percentage information.	
(2)	Economic leased percentage excludes the square footage associated with executed but not commenced leases for currently vacant spaces and the square footage associated with tenants receiving rental abatements (after proportional adjustments for tenants receiving only partial rental abatements). Due to variations in rental abatement structures whereby some abatements are provided for the first few months of each lease year as opposed to being provided entirely at the beginning of the lease, there will be variability to the economic leased percentage over time as abatements commence and expire. Please see the Future Lease Commencements and Abatements section of Financial Highlights for details on near-term abatements for large leases.	
(3)	Amount in the third quarter of 2016 includes $22.6 million in impairment losses associated with 9200 and 9211 Corporate Boulevard located in Rockville, MD. Amount in the second quarter of 2016 includes $8.3 million in impairment losses associated with 150 West Jefferson located in Detroit, MI, and 9221 Corporate Boulevard located in Rockville, MD.	
(4)	Core EBITDA margin is calculated as Core EBITDA divided by total revenues (including revenues associated with discontinued operations).	
(5)	The fixed charge coverage ratio is calculated as Core EBITDA divided by the sum of interest expense, principal amortization, capitalized interest and preferred dividends. The Company had no preferred dividends during any of the periods presented; the Company had capitalized interest of $1,181,074 for the quarter ended December 31, 2016, $1,476,949 for the quarter ended September 30, 2016,   $735,192 for the quarter ended June 30, 2016, $1,162,192 for the quarter ended March 31, 2016, and $1,102,518 for the quarter ended December 31, 2015; the Company had principal amortization of $220,256 for the quarter ended December 31, 2016, $288,972   for the quarter ended September 30, 2016, $213,255 for the quarter ended June 30, 2016, $140,539 for the quarter ended March 31, 2016, and $277,217 for the quarter ended December 31, 2015.	
(6)	For the purposes of this calculation, we annualize the period's Core EBITDA and use the average daily balance of debt outstanding during the period, less cash and cash equivalents and escrow deposits and restricted cash as of the end of the period. The downward trend in the net debt to Core EBITDA ratios for the quarters ended March 31, 2016 and June 30, 2016   was primarily attributable to debt repayments completed using a majority of the proceeds from recent asset sales, information on which can be found on page37.	
(7)	Net debt is calculated as the total principal amount of debt outstanding minus cash and cash equivalents and escrow deposits and restricted cash. The decrease in net debt in the second quarter of 2016 was primarily attributable to the use of a portion of the proceeds from the sales of 1055 East Colorado Boulevard in Pasadena, CA, Fairway Center II in Brea, CA, and 1901 Main Street in Irvine, CA, to repay debt. The increase in net debt in the third and fourth quarters of 2016 was primarily attributable to the timing of portfolio recycling activities which resulted in acquisitions exceeding dispositions, the funding shortfall for which was temporarily funded with debt.	

14

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

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	Twelve Months Ended	
 	 	12/31/2016	
 	12/31/2015	 	12/31/2016	 	12/31/2015	
 	 	 	 	 	 	 	 	 	
GAAP net income applicable to common stock	 	$	30,189	
 	 	$	125,644	
 	 	$	107,887	
 	 	$	172,990	
 	
Depreciation (1) (2)	 	32,597	
 	 	30,867	
 	 	127,129	
 	 	133,992	
 	
Amortization (1)	 	21,259	
 	 	17,257	
 	 	75,139	
 	 	60,951	
 	
Impairment loss (1)	 	—	
 	 	—	
 	 	30,898	
 	 	40,169	
 	
Loss / (gain) on sale of properties (1)	 	(19,652	)	 	(114,412	)	 	(98,562	)	 	(168,236	)	
NAREIT funds from operations applicable to common stock	 	64,393	
 	 	59,356	
 	 	242,491	
 	 	239,866	
 	
Adjustments:	 	 	 	 	 	 	 	 	
Acquisition costs	 	4	
 	 	644	
 	 	976	
 	 	919	
 	
Loss / (gain) on extinguishment of swaps	 	—	
 	 	(94	)	 	—	
 	 	38	
 	
Net (recoveries) / loss from casualty events and litigation settlements  (1)	 	—	
 	 	278	
 	 	(34	)	 	278	
 	
Core funds from operations applicable to common stock	 	64,397	
 	 	60,184	
 	 	243,433	
 	 	241,101	
 	
Adjustments:	 	 	 	 	 	 	 	 	
Amortization of debt issuance costs, fair market adjustments on notes payable, and discount on senior notes	 	667	
 	 	642	
 	 	2,610	
 	 	2,547	
 	
Depreciation of non real estate assets	 	246	
 	 	226	
 	 	841	
 	 	755	
 	
Straight-line effects of lease revenue (1)	 	(6,429	)	 	(4,960	)	 	(21,544	)	 	(15,734	)	
Stock-based and other non-cash compensation expense	 	284	
 	 	2,051	
 	 	5,620	
 	 	7,090	
 	
Amortization of lease-related intangibles (1)	 	(1,385	)	 	(1,202	)	 	(5,065	)	 	(4,571	)	
Acquisition costs	 	(4	)	 	(644	)	 	(976	)	 	(919	)	
Non-incremental capital expenditures (3)	 	(12,135	)	 	(13,939	)	 	(35,568	)	 	(44,136	)	
Adjusted funds from operations applicable to common stock	 	$	45,641	
 	 	$	42,358	
 	 	$	189,351	
 	 	$	186,133	

Weighted average common shares outstanding - diluted	 	145,764	
 	 	146,014	
 	 	145,635	
 	 	150,880	

Funds from operations per share (diluted)	 	$	0.44	
 	 	$	0.41	
 	 	$	1.67	
 	 	$	1.59	
 	
Core funds from operations per share (diluted)	 	$	0.44	
 	 	$	0.41	
 	 	$	1.67	
 	 	$	1.60	

Common stock outstanding at end of period	 	145,235	
 	
 	145,512	
 	 	145,235	
 	 	145,512	

 	
 	 	
(1)	Includes adjustments for consolidated properties, including discontinued operations, and for our proportionate share of amounts attributable to unconsolidated joint ventures.	
(2)	Excludes depreciation of non real estate assets.	
(3)	Non-incremental capital expenditures are defined on page39.	

15

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

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Three Months Ended	 	Twelve Months Ended	
 	12/31/2016	 	12/31/2015	 	12/31/2016	 	12/31/2015	
Net income attributable to Piedmont	$	30,189	
 	 	$	125,644	
 	 	$	107,887	
 	 	$	172,990	
 	
Net income attributable to noncontrolling interest	(8	)	 	3	
 	 	(15	)	 	15	
 	
Interest expense (1)	16,566	
 	 	17,978	
 	 	64,860	
 	 	73,998	
 	
Depreciation (1)	32,844	
 	 	31,093	
 	 	127,970	
 	 	134,747	
 	
Amortization (1)	21,259	
 	 	17,257	
 	 	75,139	
 	 	60,951	
 	
Acquisition costs	4	
 	 	644	
 	 	976	
 	 	919	
 	
Impairment loss (1)	—	
 	 	—	
 	 	30,898	
 	 	40,169	
 	
Net (recoveries) / loss from casualty events and litigation settlements  (1)	—	
 	 	278	
 	 	(34	)	 	278	
 	
Loss / (gain) on sale of properties (1)	(19,652	)	 	(114,412	)	 	(98,562	)	 	(168,236	)	
Core EBITDA	81,202	
 	 	78,485	
 	 	309,119	
 	 	315,831	
 	
General & administrative expenses (1)	5,741	
 	 	7,601	
 	 	29,306	
 	 	30,388	
 	
Management fee revenue (2)	(224	)	 	(224	)	 	(1,034	)	 	(1,115	)	
Other (income) / expense (1) (3)	(459	)	 	(992	)	 	(458	)	 	(2,484	)	
Straight-line effects of lease revenue (1)	(6,429	)	 	(4,960	)	 	(21,544	)	 	(15,734	)	
Amortization of lease-related intangibles (1)	(1,385	)	 	(1,202	)	 	(5,065	)	 	(4,571	)	
Property net operating income (cash basis)	78,446	
 	 	78,708	
 	 	310,324	
 	 	322,315	

Deduct net operating (income) / loss from:	 	 	 	 	 	 	 	
Acquisitions (4)	(9,431	)	 	(2,997	)	 	(28,140	)	 	(5,070	)	
Dispositions (5)	(209	)	 	(10,423	)	 	(9,161	)	 	(56,276	)	
Other investments (6)	(120	)	 	(251	)	 	(461	)	 	(793	)	
Same store net operating income (cash basis)	$	68,686	
 	 	$	65,037	
 	 	$	272,562	
 	 	$	260,176	
 	
Change period over period	5.6	%	 	N/A	
 	 	4.8	%	 	N/A	

 	
 	 	
(1)	Includes amounts attributable to consolidated properties, including discontinued operations, and our proportionate share of amounts attributable to unconsolidated joint ventures.	
(2)	Presented net of related operating expenses incurred to earn the revenue; therefore, the information presented on this line will not tie to the data presented on the income statements.	
(3)	Figures presented on this line may not tie back to the relevant sources as some activity is attributable to property operations and is, therefore, presented in property net operating income.	
(4)	Acquisitions consist of Park Place on Turtle Creek in Dallas, TX, purchased on January 16, 2015; 80 Central Street in Boxborough, MA, purchased on July 24, 2015; SunTrust Center in Orlando, FL, purchased on November 4, 2015; Galleria 300 in Atlanta, GA, purchased on November 4, 2015; Glenridge Highlands One in Atlanta, GA, purchased on November 24, 2015; CNL Center I and CNL Center II in Orlando, FL, purchased on August 1, 2016; One Wayside Road in Burlington, MA, purchased on August 10, 2016; Galleria 200 in Atlanta, GA, purchased on October 7, 2016; and 750 West John Carpenter Freeway in Irving, TX, purchased on November 30, 2016.	
(5)	Dispositions consist of 3900 Dallas Parkway in Plano, TX, sold on January 30, 2015; 5601 Headquarters Drive in Plano, TX, sold on April 28, 2015; River Corporate Center in Tempe, AZ, sold on April 29, 2015; Copper Ridge Center in Lyndhurst, NJ, sold on May 1, 2015; Eastpoint I and II in Mayfield Heights, OH, sold on July 28, 2015; 3750 Brookside Parkway in Alpharetta, GA, sold on August 10, 2015; Chandler Forum in Chandler, AZ, sold on September 1, 2015; Aon Center in Chicago, IL, sold on October 29, 2015; 2 Gatehall Drive in Parsippany, NJ, sold on December 21, 2015; 1055 East Colorado Boulevard in Pasadena, CA, sold on April 21, 2016; Fairway Center II in Brea, CA, sold on April 28, 2016; 1901 Main Street in Irvine, CA, sold on May 2, 2016; 9221 Corporate Boulevard in Rockville, MD, sold on July 27, 2016; 150 West Jefferson in Detroit, MI, sold on July 29, 2016; 9200 and 9211 Corporate Boulevard in Rockville, MD, sold on September 28, 2016; 11695 Johns Creek Parkway in Johns Creek, GA, sold on December 22, 2016; and Braker Pointe III in Austin, TX, sold on December 29, 2016.	
(6)	Other investments consist of our investments in unconsolidated joint ventures, redevelopment and development projects, and land. Additional information on our unconsolidated joint ventures, redevelopment and development projects, and land holdings can be found on page38. The operating results from both the office and the retail portions of 3100 Clarendon Boulevard in Arlington, VA, are included in this line item.	

16

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

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Same Store Net Operating Income (Cash Basis)	 	 	 	 	 	 	 	 	 	 	 	
Contributions from Strategic Operating Markets	Three Months Ended	 	Twelve Months Ended	
 	12/31/2016	 	12/31/2015	 	12/31/2016	 	12/31/2015	
 	$	%	 	$	%	 	$	%	 	$	%	
Washington, D.C. (1)	$	11,414	
 	16.6	
 	 	$	11,891	
 	18.3	
 	 	$	46,448	
 	17.0	
 	 	$	48,254	
 	18.5	
 	
New York (2)	8,151	
 	11.9	
 	 	9,102	
 	14.0	
 	 	36,891	
 	13.5	
 	 	35,091	
 	13.5	
 	
Boston (3)	7,761	
 	11.3	
 	 	6,928	
 	10.7	
 	 	29,646	
 	10.9	
 	 	26,534	
 	10.2	
 	
Chicago (4)	7,192	
 	10.5	
 	 	5,516	
 	8.5	
 	 	27,565	
 	10.1	
 	 	22,834	
 	8.8	
 	
Minneapolis (5)	5,855	
 	8.5	
 	 	5,359	
 	8.2	
 	 	23,168	
 	8.5	
 	 	19,945	
 	7.7	
 	
Dallas	5,765	
 	8.4	
 	 	5,743	
 	8.8	
 	 	23,053	
 	8.5	
 	 	23,052	
 	8.9	
 	
Atlanta (6)	4,568	
 	6.7	
 	 	4,302	
 	6.6	
 	 	17,675	
 	6.5	
 	 	15,907	
 	6.1	
 	
Orlando	641	
 	0.9	
 	 	609	
 	0.9	
 	 	2,248	
 	0.8	
 	 	2,225	
 	0.8	
 	
Other (7)	17,339	
 	25.2	
 	 	15,587	
 	24.0	
 	 	65,868	
 	24.2	
 	 	66,334	
 	25.5	
 	
Total	$	68,686	
 	100.0	
 	 	$	65,037	
 	100.0	
 	 	$	272,562	
 	100.0	
 	 	$	260,176	
 	100.0	

 	
 	 	
(1)	The decrease in Washington, D.C. Same Store Net Operating Income for the twelve months ended December 31, 2016 as compared to the same period in 2015 was primarily attributable to a lease expiration and a lease contraction at Arlington Gateway in Arlington, VA, and 1201 Eye Street in Washington, DC, respectively, offset somewhat by increased economic occupancy at 4250 North Fairfax Drive in Arlington, VA.
	
(2)	The decrease in New York Same Store Net Operating Income for the three months ended December 31, 2016 as compared to the same period in 2015 was primarily attributable to a one-time tenant reimbursement true-up adjustment recorded during the fourth quarter of 2016 at 60 Broad Street in New York, NY, as well as rental abatement concessions associated with several new leases at 400 Bridgewater Crossing in Bridgewater, NJ. The increase in New York Same Store Net Operating Income for the twelve months ended December 31, 2016 as compared to the same period in 2015 was primarily related to increased rental income as a result of recent leasing activity at 60 Broad Street in New York, NY.	
(3)	The increase in Boston Same Store Net Operating Income for the three months and the twelve months ended December 31, 2016 as compared to the same periods in 2015 was primarily related to the expiration of the rental abatement concession associated with a large lease renewal at 90 Central Street in Boxborough, MA.	
(4)	The increase in Chicago Same Store Net Operating Income for the three months and the twelve months ended December 31, 2016 as compared to the same periods in 2015 was primarily related to the expirations of rental abatement periods associated with several leases at 500 West Monroe Street in Chicago, IL, Windy Point II in Schaumburg, IL, and Two Pierce Place in Itasca, IL.	
(5)	The increase in Minneapolis Same Store Net Operating Income for the twelve months ended December 31, 2016 as compared to the same period in 2015 was primarily attributable to the expirations of rental abatement periods associated with several leases at US Bancorp Center in Minneapolis, MN, and Crescent Ridge II in Minnetonka, MN.
	
(6)	The increase in Atlanta Same Store Net Operating Income for the twelve months ended December 31, 2016 as compared to the same period in 2015 was primarily related to the expirations of rental abatement periods associated with leases at Suwanee Gateway One in Suwanee, GA, and The Medici in Atlanta, GA.	
(7)	The increase in Other Same Store Net Operating Income for the three months ended December 31, 2016 as compared to the same period in 2015 was primarily related to a four-month rental abatement concession commencing in December 2015 provided to Nestle at the beginning of its 401,000 square foot renewal lease's term at 800 North Brand Boulevard in Glendale, CA.

17

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

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Three Months Ended	 	Twelve Months Ended	
 	12/31/2016	 	12/31/2015	 	12/31/2016	 	12/31/2015	
Net income attributable to Piedmont	$	30,189	
 	 	$	125,644	
 	 	$	107,887	
 	 	$	172,990	
 	
Net income attributable to noncontrolling interest	(8	)	 	3	
 	 	(15	)	 	15	
 	
Interest expense (1)	16,566	
 	 	17,978	
 	 	64,860	
 	 	73,998	
 	
Depreciation (1)	32,844	
 	 	31,093	
 	 	127,970	
 	 	134,747	
 	
Amortization (1)	21,259	
 	 	17,257	
 	 	75,139	
 	 	60,951	
 	
Acquisition costs	4	
 	 	644	
 	 	976	
 	 	919	
 	
Impairment loss (1)	—	
 	 	—	
 	 	30,898	
 	 	40,169	
 	
Net (recoveries) / loss from casualty events and litigation settlements  (1)	—	
 	 	278	
 	 	(34	)	 	278	
 	
Loss / (gain) on sale of properties (1)	(19,652	)	 	(114,412	)	 	(98,562	)	 	(168,236	)	
Core EBITDA	81,202	
 	 	78,485	
 	 	309,119	
 	 	315,831	
 	
General & administrative expenses (1)	5,741	
 	 	7,601	
 	 	29,306	
 	 	30,388	
 	
Management fee revenue (2)	(224	)	 	(224	)	 	(1,034	)	 	(1,115	)	
Other (income) / expense (1) (3)	(459	)	 	(992	)	 	(458	)	 	(2,484	)	
Property net operating income (accrual basis)	86,260	
 	 	84,870	
 	 	336,933	
 	 	342,620	

Deduct net operating (income) / loss from:	 	 	 	 	 	 	 	
Acquisitions (4)	(13,104	)	 	(4,229	)	 	(35,255	)	 	(6,625	)	
Dispositions (5)	(308	)	 	(10,786	)	 	(10,095	)	 	(61,087	)	
Other investments (6)	(423	)	 	(258	)	 	(1,275	)	 	(857	)	
Same store net operating income (accrual basis)	$	72,425	
 	 	$	69,597	
 	 	$	290,308	
 	 	$	274,051	
 	
Change period over period	4.1	%	 	N/A	
 	 	5.9	%	 	N/A	

 	
 	 	
(1)	Includes amounts attributable to consolidated properties, including discontinued operations, and our proportionate share of amounts attributable to unconsolidated joint ventures.	
(2)	Presented net of related operating expenses incurred to earn the revenue; therefore, the information presented on this line will not tie to the data presented on the income statements.	
(3)	Figures presented on this line may not tie back to the relevant sources as some activity is attributable to property operations and is, therefore, presented in property net operating income.	
(4)	Acquisitions consist of Park Place on Turtle Creek in Dallas, TX, purchased on January 16, 2015; 80 Central Street in Boxborough, MA, purchased on July 24, 2015; SunTrust Center in Orlando, FL, purchased on November 4, 2015; Galleria 300 in Atlanta, GA, purchased on November 4, 2015; Glenridge Highlands One in Atlanta, GA, purchased on November 24, 2015; CNL Center I and CNL Center II in Orlando, FL, purchased on August 1, 2016; One Wayside Road in Burlington, MA, purchased on August 10, 2016; Galleria 200 in Atlanta, GA, purchased on October 7, 2016; and 750 West John Carpenter Freeway in Irving, TX, purchased on November 30, 2016.	
(5)	Dispositions consist of 3900 Dallas Parkway in Plano, TX, sold on January 30, 2015; 5601 Headquarters Drive in Plano, TX, sold on April 28, 2015; River Corporate Center in Tempe, AZ, sold on April 29, 2015; Copper Ridge Center in Lyndhurst, NJ, sold on May 1, 2015; Eastpoint I and II in Mayfield Heights, OH, sold on July 28, 2015; 3750 Brookside Parkway in Alpharetta, GA, sold on August 10, 2015; Chandler Forum in Chandler, AZ, sold on September 1, 2015; Aon Center in Chicago, IL, sold on October 29, 2015; 2 Gatehall Drive in Parsippany, NJ, sold on December 21, 2015; 1055 East Colorado Boulevard in Pasadena, CA, sold on April 21, 2016; Fairway Center II in Brea, CA, sold on April 28, 2016; 1901 Main Street in Irvine, CA, sold on May 2, 2016; 9221 Corporate Boulevard in Rockville, MD, sold on July 27, 2016; 150 West Jefferson in Detroit, MI, sold on July 29, 2016; 9200 and 9211 Corporate Boulevard in Rockville, MD, sold on September 28, 2016; 11695 Johns Creek Parkway in Johns Creek, GA, sold on December 22, 2016; and Braker Pointe III in Austin, TX, sold on December 29, 2016.	
(6)	Other investments consist of our investments in unconsolidated joint ventures, redevelopment and development projects, and land. Additional information on our unconsolidated joint ventures, redevelopment and development projects, and land holdings can be found on page38. The operating results from both the office and the retail portions of 3100 Clarendon Boulevard in Arlington, VA, are included in this line item.	

18

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

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Same Store Net Operating Income (Accrual Basis)	 	 	 	 	 	 	 	 	 	 	 	
Contributions from Strategic Operating Markets	Three Months Ended	 	Twelve Months Ended	
 	12/31/2016	 	12/31/2015	 	12/31/2016	 	12/31/2015	
 	$	%	 	$	%	 	$	%	 	$	%	
Washington, D.C. (1)	$	14,509	
 	20.0	
 	 	$	12,582	
 	18.1	
 	 	$	56,737	
 	19.5	
 	 	$	50,516	
 	18.4	
 	
New York (2)	7,516	
 	10.4	
 	 	9,168	
 	13.2	
 	 	35,123	
 	12.1	
 	 	34,204	
 	12.5	
 	
Chicago (3)	8,206	
 	11.3	
 	 	6,776	
 	9.7	
 	 	31,140	
 	10.7	
 	 	26,315	
 	9.6	
 	
Boston (4)	7,686	
 	10.6	
 	 	7,180	
 	10.3	
 	 	29,700	
 	10.2	
 	 	27,613	
 	10.1	
 	
Dallas	5,874	
 	8.1	
 	 	5,749	
 	8.2	
 	 	22,935	
 	7.9	
 	 	23,536	
 	8.6	
 	
Minneapolis (5)	5,608	
 	7.8	
 	 	5,303	
 	7.6	
 	 	22,195	
 	7.7	
 	 	20,571	
 	7.5	
 	
Atlanta (6)	4,639	
 	6.4	
 	 	4,718	
 	6.8	
 	 	18,807	
 	6.5	
 	 	17,287	
 	6.3	
 	
Orlando	627	
 	0.9	
 	 	605	
 	0.9	
 	 	2,419	
 	0.8	
 	 	2,438	
 	0.9	
 	
Other	17,760	
 	24.5	
 	 	17,516	
 	25.2	
 	 	71,252	
 	24.6	
 	 	71,571	
 	26.1	
 	
Total	$	72,425	
 	100.0	
 	 	$	69,597	
 	100.0	
 	 	$	290,308	
 	100.0	
 	 	$	274,051	
 	100.0	

 	
 	 	
(1)	The increase in Washington, D.C. Same Store Net Operating Income for the three months and the twelve months ended December 31, 2016 as compared to the same periods in 2015 was primarily attributable to the commencement of several new leases at One Independence Square in Washington, D.C., and 4250 North Fairfax Drive in Arlington, VA.	
(2)	The decrease in New York Same Store Net Operating Income for the three months ended December 31, 2016 as compared to the same period in 2015 was primarily attributable to a one-time tenant reimbursement true-up adjustment recorded during the fourth quarter of 2016 at 60 Broad Street in New York, NY. The increase in New York Same Store Net Operating Income for the twelve months ended December 31, 2016 as compared to the same period in 2015 was primarily related to increased rental income as a result of recent leasing activity at 60 Broad Street in New York, NY.	
(3)	The increase in Chicago Same Store Net Operating Income for the three months and the twelve months ended December 31, 2016 as compared to the same periods in 2015 was primarily related to the commencement of several new leases, along with the expiration of operating expense recovery abatement periods, at 500 West Monroe Street in Chicago, IL, Windy Point II in Schaumburg, IL, and Two Pierce Place in Itasca, IL.	
(4)	The increase in Boston Same Store Net Operating Income for the twelve months ended December 31, 2016 as compared to the same period in 2015 was largely related to the expiration of the operating expense recovery abatement period associated with a large lease renewal at 90 Central Street in Boxborough, MA.	
(5)	The increase in Minneapolis Same Store Net Operating Income for the twelve months ended December 31, 2016 as compared to the same period in 2015 was primarily attributable to increased rental income as a result of recent leasing activity at US Bancorp Center in Minneapolis, MN, and Crescent Ridge II in Minnetonka, MN.
	
(6)	The increase in Atlanta Same Store Net Operating Income for the twelve months ended December 31, 2016 as compared to the same period in 2015 was primarily attributable to increased rental income as a result of recent leasing activity at Suwanee Gateway One in Suwanee, GA, and Glenridge Highlands Two and The Medici, both in Atlanta, GA.	

19

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

 	
 	 	 	 	 	 	 	 	 	
 	 	As of	 	As of	
 	 	December 31, 2016	 	December 31, 2015	
 	 	 	 	 	
Market Capitalization	 	 	 	 	
Common stock price (1)	 	$	20.91	
 	 	$	18.88	
 	
Total shares outstanding	 	145,235	
 	 	145,512	
 	
Equity market capitalization (1)	 	$	3,036,870	
 	 	$	2,747,260	
 	
Total debt - principal amount outstanding (excludes premiums, discounts, and deferred financing costs)	 	$	2,029,582	
 	 	$	2,040,970	
 	
Total market capitalization (1)	 	$	5,066,452	
 	 	$	4,788,230	
 	
Total debt / Total market capitalization (1)	 	40.1	%	 	42.6	%	
Ratios & Information for Debt Holders	 	 	 	 	
Total gross real estate assets (2)	 	$	4,785,417	
 	 	$	4,710,837	
 	
Total debt / Total gross real estate assets (2)	 	42.4	%	 	43.3	%	
Total debt / Total gross assets (3)	 	36.9	%	 	37.5	%	
Average net debt to Core EBITDA (4)	 	6.4 x	
 	 	6.9 x	

 	
 	 	
(1)	Reflects common stock closing price as of the end of the reporting period.	
(2)	Gross real estate assets is defined as total real estate assets with the add-back of accumulated depreciation and accumulated amortization related to real estate assets.	
(3)	Gross assets is defined as total assets with the add-back of accumulated depreciation and accumulated amortization related to real estate assets.	
(4)	For the purposes of this calculation, we annualize the Core EBITDA for the quarter and use the average daily balance of debt outstanding during the quarter, less cash and cash equivalents and escrow deposits and restricted cash as of the end of the quarter.	

20

Piedmont Office Realty Trust, Inc.
Debt Summary
As of December 31, 2016 
Unaudited ($ in thousands)

 	
 	 	 	 	 	 	
Floating Rate & Fixed Rate Debt	 	 	 	
Debt (1)	Principal Amount
Outstanding	Weighted Average Stated
Interest Rate (2)	Weighted Average
Maturity	
 	 	 	 	 	
Floating Rate	$348,000	(3) 	1.76%	29.3 months	
 	 	 	 	 	
Fixed Rate	1,681,582	
 	 	3.77%	55.8 months	
 	 	 	 	 	
Total	$2,029,582	 	3.43%	51.2 months	

 	

 	
 	 	 	 	 	 	 	
Unsecured & Secured Debt	
Debt (1)	Principal Amount
Outstanding	Weighted Average Stated
Interest Rate (2)	Weighted Average
Maturity	
 	 	 	 	 	 	
Unsecured	$1,698,000	 	3.19%	 	53.1 months	
 	 	 	 	 	 	
Secured	331,582	
 	 	4.64%	 	41.5 months	
 	 	 	 	 	 	
Total	$2,029,582	 	3.43%	 	51.2 months	

 	

 	
 	 	 	 	 	 	 	
Debt Maturities	
Maturity Year	Secured Debt - Principal
Amount Outstanding  (1)	Unsecured Debt - Principal
Amount Outstanding  (1)	 Weighted Average
Stated Interest
Rate (2)	 Percentage of Total	
 	 	 	 	 	 	 	
2017	140,000	 	—	 	5.76%	6.9%	
2018	—	 	170,000	 	1.78%	8.4%	
2019	—	 	300,000	 	2.78%	14.8%	
2020	—	 	478,000	(4) 	2.75%	23.5%	
2021	31,582	 	—	 	5.55%	1.6%	
2022 +	160,000	 	750,000	 	3.88%	44.8%	
 	 	 	 	 	 	 	
Total	$331,582	 	$1,698,000	 	3.43%	100.0%	

 	
 	 	
(1)	All of Piedmont's outstanding debt as of December 31, 2016, was interest-only debt with the exception of the $31.6 million of debt associated with 5 Wall Street located in Burlington, MA.	
(2)	Weighted average stated interest rate is calculated based upon the principal amounts outstanding.	
(3)	Amount represents the $178 million outstanding balance as of December 31, 2016 on the $500 million unsecured revolving credit facility and the $170 million unsecured term loan. Two other loans, the $300 million unsecured term loan that closed in 2011 and the $300 million unsecured term loan that closed in 2013, have stated variable rates. However, Piedmont entered into $300 million in notional amount of interest rate swap agreements which effectively fix the interest rate on the 2011 unsecured term loan at 3.35% through its maturity date of January 15, 2020, assuming no credit rating change for the Company, and $300 million in notional amount of interest rate swap agreements which effectively fix the interest rate on the 2013 unsecured term loan at 2.78% through its maturity date of January 31, 2019, assuming no credit rating change for the Company. The 2011 unsecured term loan and the 2013 unsecured term loan, therefore, are reflected as fixed rate debt.	
(4)	The initial maturity date of the $500 million unsecured revolving credit facility is June 18, 2019; however, there are two, six-month extension options available under the facility providing for a final extended maturity date of June 18, 2020. For the purposes of this schedule, we reflect the maturity date of the facility as the final extended maturity date of June 2020.	

21

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

 	
 	 	 	 	 	 	 	 	 	
Facility (1)	Property	Stated Rate	Maturity	Principal Amount Outstanding as of December 31, 2016	
 	 	 	 	 	 	
Secured	 	 	 	 	 	
$140.0 Million WDC Fixed-Rate Loans	1201 & 1225 Eye Street	5.76	%	 	11/1/2017	$	140,000	
 	
$35.0 Million Fixed-Rate Loan (2)	5 Wall Street	5.55	%	 	9/1/2021	31,582	
 	
$160.0 Million Fixed-Rate Loan	1901 Market Street	3.48	%	(3) 	7/5/2022	160,000	
 	
Subtotal / Weighted Average (4)	 	4.64	%	 	 	$	331,582	

Unsecured	 	 	 	 	 	
$170.0 Million Unsecured 2015 Term Loan	N/A	1.78	%	(5) 	5/15/2018	$	170,000	
 	
$300.0 Million Unsecured 2013 Term Loan	N/A	2.78	%	(6) 	1/31/2019	300,000	
 	
$300.0 Million Unsecured 2011 Term Loan	N/A	3.35	%	(7) 	1/15/2020	300,000	
 	
$500.0 Million Unsecured Line of Credit (8)	N/A	1.74	%	(9) 	6/18/2020	178,000	
 	
$350.0 Million Unsecured Senior Notes	N/A	3.40	%	(10) 	6/1/2023	350,000	
 	
$400.0 Million Unsecured Senior Notes	N/A	4.45	%	(11) 	3/15/2024	400,000	
 	
Subtotal / Weighted Average (4)	 	3.19	%	 	 	$	1,698,000	

Total Debt - Principal Amount Outstanding / Weighted Average Stated Rate (4)	3.43	%	 	 	$	2,029,582	
 	
GAAP Accounting Adjustments (12)	 	 	 	 	(9,107	)	
Total Debt - GAAP Amount Outstanding	 	 	 	$	2,020,475	

 	
 	 	
(1)	All of Piedmont’s outstanding debt as of December 31, 2016, was interest-only debt with the exception of the $31.6 million of debt associated with 5 Wall Street located in Burlington, MA.	
(2)	The loan is amortizing based on a 25-year amortization schedule.	
(3)	The stated interest rate on the $160 million fixed-rate loan is 3.48%. After the application of interest rate hedges, the effective cost of the financing is approximately 3.58%.	
(4)	Weighted average is based on the principal amount outstanding and interest rate at December 31, 2016.	
(5)	The $170 million unsecured term loan has a variable interest rate. Piedmont may select from multiple interest rate options under the facility, including the prime rate and various length LIBOR locks. All LIBOR selections are subject to an additional spread (1.125% as of December 31, 2016) over the selected rate based on Piedmont’s current credit rating.	
(6)	The $300 million unsecured term loan that closed in 2013 has a stated variable rate; however, Piedmont entered into interest rate swap agreements which effectively fix the interest rate on this loan at 2.78% through its maturity date of January 31, 2019, assuming no credit rating change for the Company.	
(7)	The $300 million unsecured term loan that closed in 2011 has a stated variable rate; however, Piedmont entered into interest rate swap agreements which effectively fixed the interest rate on this loan at 2.39% through November 22, 2016. For the period from November 22, 2016 to January 15, 2020, Piedmont entered into interest rate swap agreements which effectively fix the interest rate on this loan at 3.35%, assuming no credit rating change for the Company.	
(8)	All of Piedmont’s outstanding debt as of December 31, 2016, was term debt with the exception of $178 million outstanding on our unsecured revolving credit facility. The $500 million unsecured revolving credit facility has an initial maturity date of June 18, 2019; however, there are two, six-month extension options available under the facility providing for a total extension of up to one year to June 18, 2020. The final extended maturity date is presented on this schedule.	
(9)	The interest rate presented for the $500 million unsecured revolving credit facility is the weighted average interest rate for all outstanding draws as of December 31, 2016. Piedmont may select from multiple interest rate options with each draw under the facility, including the prime rate and various length LIBOR locks. All LIBOR selections are subject to an additional spread (1.00% as of December 31, 2016) over the selected rate based on Piedmont’s current credit rating.	
(10)	The $350 million unsecured senior notes were offered for sale at 99.601% of the principal amount. The resulting effective cost of the financing is approximately 3.45% before the consideration of transaction costs and proceeds from interest rate hedges. After the application of proceeds from interest rate hedges, the effective cost of the financing is approximately 3.43%.	
(11)	The $400 million unsecured senior notes were offered for sale at 99.791% of the principal amount. The resulting effective cost of the financing is approximately 4.48% before the consideration of transaction costs and proceeds from interest rate hedges. After the application of proceeds from interest rate hedges, the effective cost of the financing is approximately 4.10%.	
(12)	The GAAP accounting adjustments relate to original issue discounts, third-party fees, and lender fees resulting from the procurement processes for our various debt facilities, along with debt fair value adjustments associated with the assumed 5 Wall Street debt. The original issue discounts and fees, along with the debt fair value adjustments, are amortized to interest expense over the contractual term of the related debt.	

22

Piedmont Office Realty Trust, Inc.
Debt Covenant & Ratio Analysis (for Debt Holders)
As of December 31, 2016 
Unaudited

 	
 	 	 	 	 	 	 	
 	 	Three Months Ended	
Bank Debt Covenant Compliance (1)	Required	12/31/2016	09/30/2016	06/30/2016	03/31/2016	12/31/2015	

 	
 	 	 	 	 	
Maximum leverage ratio	0.60	0.39	0.38	0.38	0.40	0.41	
Minimum fixed charge coverage ratio (2)	1.50	4.10	3.99	3.92	3.86	3.82	
Maximum secured indebtedness ratio	0.40	0.06	0.06	0.08	0.07	0.10	
Minimum unencumbered leverage ratio	1.60	2.66	2.77	2.83	2.69	2.62	
Minimum unencumbered interest coverage ratio  (3)	1.75	5.07	5.21	5.15	5.05	4.82	

 	
 	 	 	 	 	 	 	
 	 	Three Months Ended	
Bond Covenant Compliance (4)	Required	12/31/2016	09/30/2016	06/30/2016	03/31/2016	12/31/2015	
 	 	 	 	 	 	 	
Total debt to total assets	60% or less	42.2%	42.2%	40.3%	42.3%	42.6%	
Secured debt to total assets	40% or less	6.9%	7.0%	8.0%	7.9%	10.5%	
Ratio of consolidated EBITDA to interest expense	1.50 or greater	4.99	4.84	4.65	4.48	4.43	
Unencumbered assets to unsecured debt	150% or greater	255%	255%	274%	258%	263%	

 	

 	Three Months Ended	Twelve Months Ended	Twelve Months Ended	
Other Debt Coverage Ratios for Debt Holders	December 31, 2016	December 31, 2016	December 31, 2015	

Average net debt to core EBITDA (5)	6.4 x	6.4 x	7.2 x	
Fixed charge coverage ratio (6)	4.5 x	4.4 x	4.0 x	
Interest coverage ratio (7)	4.6 x	4.5 x	4.1 x	

 	
 	 	
(1)	Bank debt covenant compliance calculations relate to specific calculations detailed in the relevant credit agreements.	
(2)	Defined as EBITDA for the trailing four quarters (including the Company's share of EBITDA from unconsolidated interests), less one-time or non-recurring gains or losses, less a $0.15 per square foot capital reserve, and excluding the impact of straight line rent leveling adjustments and amortization of intangibles divided by the Company's share of fixed charges, as more particularly described in the credit agreements. This definition of fixed charge coverage ratio as prescribed by our credit agreements is different from the fixed charge coverage ratio definition employed elsewhere within this report.	
(3)	Defined as net operating income for the trailing four quarters for unencumbered assets (including the Company's share of net operating income from partially-owned entities and subsidiaries that are deemed to be unencumbered) less a $0.15 per square foot capital reserve divided by the Company's share of interest expense associated with unsecured financings only, as more particularly described in the credit agreements.	
(4)	Bond covenant compliance calculations relate to specific calculations prescribed in the relevant debt agreements. Please refer to the Indenture dated May 9, 2013, and the Indenture and the Supplemental Indenture dated March 6, 2014, for detailed information about the calculations.	
(5)	For the purposes of this calculation, we use the average daily balance of debt outstanding during the period, less cash and cash equivalents and escrow deposits and restricted cash as of the end of the period.	
(6)	Fixed charge coverage ratio is calculated as Core EBITDA divided by the sum of interest expense, principal amortization, capitalized interest and preferred dividends. The Company had no preferred dividends during the periods ended December 31, 2016 and December 31, 2015. The Company had capitalized interest of $1,181,074 for the three months ended December 31, 2016, $4,555,407 for the twelve months ended December 31, 2016, and $3,765,950 for the twelve months ended December 31, 2015. The Company had principal amortization of $220,256 for the three months ended December 31, 2016, $863,022 for the twelve months ended December 31, 2016, and $816,534 for the twelve months ended December 31, 2015.	
(7)	Interest coverage ratio is calculated as Core EBITDA divided by the sum of interest expense and capitalized interest. The Company had capitalized interest of $1,181,074 for the three months ended December 31, 2016, $4,555,407 for the twelve months ended December 31, 2016, and $3,765,950 for the twelve months ended December 31, 2015.	

23

Piedmont Office Realty Trust, Inc.
Tenant Diversification (1) 
As of December 31, 2016 
(in thousands except for number of properties)

 	
 	 	 	 	 	 	 	 	 	
Tenant	Credit Rating (2)	Number of
Properties	Lease Expiration  (3)	Annualized Lease
Revenue	Percentage of
Annualized Lease
Revenue (%)	 Leased
Square Footage	Percentage of
Leased
Square Footage (%)	
U.S. Government	AA+ / Aaa	5	(4) 	
 	$47,121	8.2	947	5.3	
State of New York	AA+ / Aa1	1	2019	
 	25,242	4.4	481	2.7	
US Bancorp	A+ / A1	3	2023 / 2024	
 	22,061	3.8	733	4.1	
Independence Blue Cross	No Rating Available	1	2033	
 	18,370	3.2	801	4.5	
GE	AA- / A1	1	2027	
 	16,394	2.8	452	2.5	
Nestle	AA / Aa2	1	2021	
 	11,752	2.0	401	2.3	
City of New York	AA / Aa2	1	2020	
 	10,846	1.9	313	1.8	
Gallagher	No Rating Available	2	2018	
 	9,624	1.7	315	1.8	
Nuance Communications	BB- / Ba3	2	2018 / 2030	
 	9,088	1.6	280	1.6	
Catamaran	A+ / A3	1	2025	
 	8,713	1.5	301	1.7	
Motorola	BBB- / Baa3	1	2028	
 	8,154	1.4	206	1.2	
Caterpillar Financial	A / A3	1	2022	
 	8,137	1.4	312	1.8	
Harvard University	AAA / Aaa	2	2032 / 2033	
 	7,343	1.3	110	0.6	
District of Columbia	AA- / A2	2	2028	
 	6,903	1.2	146	0.8	
Raytheon	A / A3	2	2019	 	6,389	1.1	440	2.5	
Goldman Sachs	BBB+ / A3	2	2018	 	6,325	1.1	235	1.3	
Towers Watson	BBB / Baa3	1	2017	 	6,008	1.0	123	0.7	
Henry M Jackson	No Rating Available	2	2022	 	5,830	1.0	145	0.8	
Schlumberger Technology	AA- / A1	1	2020	 	5,774	1.0	163	0.9	
First Data Corporation	B+ / B1	1	2027	 	5,705	1.0	201	1.1	
Epsilon Data Management	No Rating Available	1	2026	 	5,677	1.0	222	1.2	
Other	
 	
 	Various	 	324,674	56.4	10,462	58.8	
Total	

 	 	$576,130	100.0	17,789	100.0	

24

Tenant Diversification
Percentage of Annualized Leased Revenue (%)
December 31, 2016 as compared to December 31, 2015 

    

 	
 	 	
(1)	This schedule presents all tenants contributing 1.0% or more to Annualized Lease Revenue.	
(2)	Credit rating may reflect the credit rating of the parent or a guarantor. When available, both the Standard & Poor's credit rating and the Moody's credit rating are provided. The absence of a credit rating for a tenant is no indication of the creditworthiness of the tenant; in most cases, the lack of a credit rating reflects that the tenant has not sought such a rating.	
(3)	Unless otherwise indicated, Lease Expiration represents the expiration year of the majority of the square footage leased by the tenant.	
(4)	There are several leases with several different agencies of the U.S. Government with expiration years ranging from 2016 to 2031.	

 	

 	

 	

25

Piedmont Office Realty Trust, Inc.
Tenant Credit Rating & Lease Distribution Information
As of December 31, 2016 

Tenant Credit Rating (1) 

Rating Level	Annualized
Lease Revenue
(in thousands)	Percentage of
Annualized Lease
Revenue (%)	
 	 	 	
AAA / Aaa	$60,222	10.5	
AA / Aa	97,459	16.9	
A / A	80,534	14.0	
BBB / Baa	56,354	9.8	
BB / Ba	37,870	6.6	
B / B	26,609	4.6	
Below	3,716	
 	0.6	
Not rated (2)	213,366	37.0	
Total	$576,130	100.0	

Lease Distribution

Lease Size	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	238	30.2	$19,903	3.4	222	
 	1.3	
2,501 - 10,000	277	35.1	46,714	8.1	1,462	
 	8.2	
10,001 - 20,000	96	12.2	40,671	7.1	1,324	
 	7.4	
20,001 - 40,000	80	10.2	75,321	13.1	2,292	
 	12.9	
40,001 - 100,000	53	6.7	103,748	18.0	3,164	
 	17.8	
Greater than 100,000	44	5.6	289,773	50.3	9,325	
 	52.4	
Total	788	100.0	$576,130	100.0	17,789	
 	100.0	

 	
 	 	
(1)	Credit rating may reflect the credit rating of the parent or a guarantor. Where differences exist between the Standard & Poor's credit rating for a tenant and the Moody's credit rating for a tenant, the higher credit rating is selected for this analysis.	
(2)	The classification of a tenant as "not rated" is no indication of the creditworthiness of the tenant; in most cases, the lack of a credit rating reflects that the tenant has not sought such a rating. Included in this category are such tenants as Independence Blue Cross, Piper Jaffray, Brother International, and RaceTrac Petroleum.	

26

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

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	Three Months Ended	 	
 	 	December 31, 2016	 	December 31, 2015	 	
 	 	 Leased
Square Footage	 Rentable
Square Footage	Percent
Leased (1)	 	 Leased
Square Footage	 Rentable
Square Footage	Percent
Leased (1)	 	
 	As of September 30, 20xx	17,221	
 	18,442	
 	93.4	%	 	18,752	
 	20,697	
 	90.6	%	 	
 	Leases signed during the period	329	
 	 	 	 	812	

 	   Less: lease renewals signed during period	(163	)	 	 	 	(545	)	
 	 	 	
 	New leases signed during period	166	

 	 	 	267	

 	 	 	
 	      Less: new leases signed during period for currently occupied space	(67	)	 	 	 	4	
 	 	 	 	
 	   New leases commencing during period	99	
 	 	 	 	271	
 	 	 	 	
 	   Leases expired during period and other	(16	)	(7	)	
 	 	(135	)	2	

 	Subtotal	17,304	
 	18,435	
 	93.9	%	 	18,888	
 	20,699	
 	91.3	%	 	
 	Acquisitions during period	624	
 	747	
 	 	 	1,229	
 	1,378	
 	 	 	
 	Dispositions during period	(139	)	(297	)	 	 	(2,794	)	(3,143	)	 	 	
 	As of December 31, 20xx (2)	17,789	
 	18,885	
 	94.2	%	 	17,323	
 	18,934	
 	91.5	%	 	

 	

 	 	Twelve Months Ended	 	Twelve Months Ended	 	
 	 	December 31, 2016	 	December 31, 2015	 	
 	 	 Leased
Square Footage	 Rentable
Square Footage	Percent
Leased (1)	 	 Leased
Square Footage	 Rentable
Square Footage	Percent
Leased (1)	 	
 	As of December 31, 20xx	17,323	
 	18,934	
 	91.5	%	 	18,828	
 	21,471	
 	87.7	%	 	
 	Leases signed during period	1,956	
 	
 	 	 	3,103	

 	  Less: lease renewals signed during period	(881	)	
 	 	 	(1,537	)	
 	 	 	
 	New leases signed during period	1,075	

 	 	 	1,566	

 	 	 	
 	   Less: new leases signed during period for currently occupied space	(235	)	 	 	 	(230	)	 	 	 	
 	New leases commencing during period	840	
 	 	 	 	1,336	
 	 	 	 	
 	Leases expired during period and other	(701	)	(5	)	 	 	(518	)	12	
 	 	 	
 	Subtotal	17,462	
 	18,929	
 	92.2	%	 	19,646	
 	21,483	
 	91.4	%	 	
 	Acquisitions during period	1,417	
 	1,566	
 	 	 	1,524	
 	1,706	
 	 	 	
 	Dispositions during period	(1,090	)	(1,610	)	 	 	(3,847	)	(4,255	)	 	 	
 	As of December 31, 20xx (2)	17,789	
 	18,885	
 	94.2	%	 	17,323	
 	18,934	
 	91.5	%	 	

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Same Store Analysis	 	 	 	 	 	 	 	 	
 	Less acquisitions / dispositions after December 31, 2015
and redevelopments (3) (4)	(1,411	)	(1,566	)	90.1	%	 	(1,354	)	(1,608	)	84.2	%	 	
 	Same Store Leased Percentage (2)	16,378	
 	17,319	
 	94.6	%	 	15,969	
 	17,326	
 	92.2	%	 	

 	

(1)	Calculated as square footage associated with commenced leases 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)	For additional information on acquisitions and dispositions completed during the last year and redevelopments, please refer to pages37 and38, respectively.	
(4)	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. Redevelopments commenced during the previous twelve months are deducted from the previous period data.	

27

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

 	
 	 	 	 	 	 	 	
 	Three Months Ended	 	
 	December 31, 2016	 	
 	Square Feet	% of Total Signed
During Period	% of Rentable
Square Footage	% Change
Cash Rents (2)	% Change
Accrual Rents   (3) (4)	 	
 	 	 	 	 	 	 	
Leases executed for spaces vacant one year or less	177	53.6%	0.9%	6.0%	17.8%	 	
Leases executed for spaces excluded from analysis  (5)	152	46.4%	 	 	 	 	

 	

 	Twelve Months Ended	 	
 	December 31, 2016	 	
 	Square Feet	% of Total Signed
During Period	% of Rentable
Square Footage	% Change
Cash Rents (2)	% Change
Accrual Rents   (3) (4)	 	
 	 	 	 	 	 	 	
Leases executed for spaces vacant one year or less	1,134	58.0%	6.0%	1.1%	10.2%	 	
Leases executed for spaces excluded from analysis  (5)	823	42.0%	 	 	 	 	

 	
 	 	
(1)	The population analyzed consists of consolidated office leases executed during the period with lease terms of greater than one year. Leases associated with storage spaces, management offices, and unconsolidated joint venture assets are excluded from this analysis.	
(2)	For the purposes of this analysis, the last twelve months of cash rents of the previous leases are compared to the first twelve months of cash rents of the new leases in order to calculate the percentage change.	
(3)	For the purposes of this analysis, the accrual basis rents of the previous leases are 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 varying accrual basis rents is used for the purposes of this analysis.	
(4)	For leases under which a tenant may use, at its discretion, a portion of its tenant improvement allowance for expenses other than those related to improvements to its space, an assumption is made that the tenant elects to use any such portion of its tenant improvement allowance for improvements to its space prior to the commencement of its lease, unless the Company is notified otherwise by the tenant. This assumption is made based upon historical usage patterns of tenant improvement allowances by the Company's tenants.	
(5)	Represents leases signed at our consolidated office assets that do not qualify for inclusion in the analysis primarily because the spaces for which the new leases were signed had been vacant for greater than one year.	

28

Piedmont Office Realty Trust, Inc.
Lease Expiration Schedule
As of December 31, 2016 
(in thousands)

 	

Expiration Year	 	Annualized Lease
Revenue (1)	Percentage of
Annualized Lease
Revenue (%)	 Rentable
Square Footage	 Percentage of
Rentable
Square Footage (%)	
Vacant	 	$—	—	1,096	5.8	
2017 (2)	 	40,860	7.1	1,229	6.5	
2018 (3)	 	41,658	7.2	1,390	7.4	
2019	 	71,287	12.4	2,279	12.1	
2020	 	45,979	8.0	1,568	8.3	
2021	 	31,022	5.4	1,058	5.6	
2022	 	48,698	8.5	1,587	8.4	
2023	 	31,127	5.4	1,104	5.8	
2024	 	44,896	7.8	1,532	8.1	
2025	 	28,342	4.9	898	4.8	
2026	 	26,414	4.6	848	4.5	
2027	 	39,788	6.9	1,214	6.4	
2028	 	57,315	9.9	1,290	6.8	
Thereafter	 	68,744	11.9	1,792	9.5	
Total / Weighted Average	 	$576,130	100.0	18,885	100.0	

 	 	
Average Lease Term Remaining	
12/31/2016	6.9 years	
12/31/2015	6.7 years	

 	
 	 	
(1)	Annualized rental income associated with each newly executed lease for currently occupied space is incorporated herein only at the expiration date for the current lease. Annualized rental income associated with each such new lease 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)	Includes leases with an expiration date of December 31, 2016, comprised of 64,000 square feet and Annualized Lease Revenue of $1.9 million.	
(3)	Leases and other revenue-producing agreements on a month-to-month basis, comprised of 5,500 square feet and Annualized Lease Revenue of $0.2 million, are assigned a lease expiration date of a year and a day beyond the period end date.	

29

Piedmont Office Realty Trust, Inc.
Lease Expirations by Quarter
As of December 31, 2016 
(in thousands)

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Q1 2017 (1)	 	Q2 2017	 	Q3 2017	 	Q4 2017	
Location	 	Expiring
Square
Footage	Expiring Lease
Revenue (2)	 	Expiring
Square
Footage	Expiring Lease
Revenue (2)	 	Expiring
Square
Footage	Expiring Lease
Revenue (2)	 	Expiring
Square
Footage	Expiring Lease
Revenue (2)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Atlanta	 	42	$1,085	 	23	$569	 	10	$230	 	7	$191	
Boston	 	28	849	 	—	7	 	43	878	 	78	2,671	
Chicago	 	30	894	 	—	8	 	11	477	 	2	68	
Dallas	 	17	604	 	13	348	 	43	1,272	 	64	1,680	
Minneapolis	 	17	657	 	5	169	 	—	2	 	9	288	
New York	 	41	1,356	 	2	82	 	16	544	 	7	265	
Orlando	 	—	68	 	3	95	 	21	538	 	43	1,107	
Washington, D.C.	 	46	2,347	 	159	7,667	 	118	6,970	 	—	—	
Other	 	177	2,614	(3) 	50	1,373	 	104	2,547	 	—	—	
Total / Weighted Average  (4)	 	398	$10,474	 	255	$10,318	 	366	$13,458	 	210	$6,270	

 	
 	 	
(1)	Includes leases with an expiration date of December 31, 2016, comprised of 64,000 square feet and expiring lease revenue of $1.9 million. No such adjustments are made to other periods presented.	
(2)	Expiring Lease Revenue is calculated as expiring square footage multiplied by the gross rent per square foot of the tenant currently leasing the space.	
(3)	As part of Comdata's recent lease renewal at 5301 Maryland Way in Brentwood, TN, the tenant was granted the right to use the 66,000 square foot give-back space beyond the original expiration date of May 31, 2016 with no base rental charges. The tenant's rights to use the 66,000 square feet of give-back space will end in Q1 2017. The tenant will continue to be directly responsible for operating expenses associated with the space until its rights to use the space have ended.	
(4)	Total expiring lease revenue in any given year will not tie to the expiring Annualized Lease Revenue presented on the Lease Expiration Schedule on the previous page as the Lease Expiration Schedule accounts for the revenue effects of newly signed leases. Reflected herein are expiring revenues based on in-place rental rates.	

30

Piedmont Office Realty Trust, Inc.
Lease Expirations by Year
As of December 31, 2016 
(in thousands)

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	12/31/2017 (1)	 	12/31/2018	 	12/31/2019	 	12/31/2020	 	12/31/2021	
Location	Expiring
Square
Footage	Expiring
Lease
Revenue (2)	 	Expiring
Square
Footage	Expiring
Lease
Revenue (2)	 	Expiring
Square
Footage	Expiring
Lease
Revenue (2)	 	Expiring
Square
Footage	Expiring
Lease
Revenue (2)	 	Expiring
Square
Footage	Expiring
Lease
Revenue (2)	
Atlanta	82	$2,074	 	140	$3,717	 	445	$11,810	 	221	$5,293	 	184	$4,754	
Boston	149	4,405	 	85	2,832	 	446	6,572	 	156	3,362	 	78	1,599	
Chicago	44	1,448	 	389	11,603	 	13	308	 	104	2,646	 	13	428	
Dallas	136	3,903	 	360	9,675	 	193	5,547	 	128	3,534	 	84	2,314	
Minneapolis	31	1,116	 	28	1,027	 	146	4,407	 	102	3,755	 	95	3,252	
New York	66	2,247	 	88	2,212	 	486	25,909	 	503	15,679	 	92	4,111	
Orlando	67	1,809	 	65	1,867	 	270	8,753	 	45	1,066	 	34	936	
Washington, D.C.	323	16,984	 	41	1,798	 	69	3,087	 	76	3,620	 	84	3,763	
Other	331	6,534	(3) 	194	6,496	 	211	4,544	 	233	7,302	 	394	11,308	
Total / Weighted Average  (4)	1,229	$40,520	 	1,390	$41,227	 	2,279	$70,937	 	1,568	$46,257	 	1,058	$32,465	

 	
 	 	
(1)	Includes leases with an expiration date of December 31, 2016, comprised of 64,000 square feet and expiring lease revenue of $1.9 million. No such adjustments are made to other periods presented.	
(2)	Expiring Lease Revenue is calculated as expiring square footage multiplied by the gross rent per square foot of the tenant currently leasing the space.	
(3)	As part of Comdata's recent lease renewal at 5301 Maryland Way in Brentwood, TN, the tenant was granted the right to use the 66,000 square foot give-back space beyond the original expiration date of May 31, 2016 with no base rental charges. The tenant's rights to use the 66,000 square feet of give-back space will end in 2017. The tenant will continue to be directly responsible for operating expenses associated with the space until its rights to use the space have ended.	
(4)	Total expiring lease revenue in any given year will not tie to the expiring Annualized Lease Revenue presented on the Lease Expiration Schedule on page29 as the Lease Expiration Schedule accounts for the revenue effects of newly signed leases. Reflected herein are expiring revenues based on in-place rental rates.	

31

Piedmont Office Realty Trust, Inc.
Capital Expenditures & Commitments
For the quarter ended December 31, 2016 
Unaudited (in thousands)

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	For the Three Months Ended	
 	12/31/2016	 	9/30/2016	 	6/30/2016	 	3/31/2016	 	12/31/2015	
Non-incremental	 	 	 	 	 	 	 	 	 	
Building / construction / development	$	1,479	
 	 	$	1,033	
 	 	$	1,094	
 	 	$	1,508	
 	 	$	2,294	
 	
Tenant improvements	4,547	
 	 	2,918	
 	 	4,022	
 	 	7,314	
 	 	6,167	
 	
Leasing costs	6,109	
 	 	3,031	
 	 	1,339	
 	 	1,174	
 	 	5,478	
 	
Total non-incremental	12,135	
 	 	6,982	
 	 	6,455	
 	 	9,996	
 	 	13,939	
 	
Incremental	 	 	 	 	 	 	 	 	 	
Building / construction / development	10,098	
 	 	10,375	
 	 	10,217	
 	 	9,690	
 	 	16,243	
 	
Tenant improvements	5,893	
 	 	18,932	
 	 	11,701	
 	 	9,171	
 	 	11,893	
 	
Leasing costs	4,180	
 	 	5,758	
 	 	2,038	
 	 	1,803	
 	 	7,765	
 	
Total incremental	20,171	
 	 	35,065	
 	 	23,956	
 	 	20,664	
 	 	35,901	
 	
Total capital expenditures	$	32,306	
 	 	$	42,047	
 	 	$	30,411	
 	 	$	30,660	
 	 	$	49,840	

 	

 	Non-incremental tenant improvement commitments (1)	 	 	 	
 	Non-incremental tenant improvement commitments outstanding as of September 30, 2016	 	$	37,742	
 	 	
 	New non-incremental tenant improvement commitments related to leases executed during period	 	2,255	
 	 	
 	Non-incremental tenant improvement expenditures	(4,547	)	 	 	
 	Tenant improvement expenditures fulfilled through accrued liabilities already presented on Piedmont's balance sheet, expired commitments or other adjustments	(107	)	 	 	
 	Non-incremental tenant improvement commitments fulfilled, expired or other adjustments	 	(4,654	)	 	
 	Total as of December 31, 2016	 	$	35,343	

 	
 	 	
NOTE:	The information presented on this page is for all consolidated assets.	
(1)	Commitments are unexpired contractual non-incremental tenant improvement obligations for leases executed in current and prior periods that have not yet been incurred, are due over the next five years, and have not otherwise been presented on Piedmont's financial statements. The four largest commitments total approximately $18.5 million, or 52% of the total outstanding commitments.	

32

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

 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	For the Three Months
Ended December 31, 2016	For the Twelve Months
Ended December 31, 2016	For the Year Ended	 	
 	 	 	 	2015	2014	2013	 	 	 	 	
Renewal Leases	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Number of leases	17	 	79	 	74	 	56	 	56	 	 	 	 	 	
 	Square feet 	162,798	 	880,289	 	1,334,398	 	959,424	 	2,376,177	 	 	 	 	 	
 	Tenant improvements per square foot  (1)	$5.46	 	$7.36	 	$16.91	 	$19.02	 	$14.24	 	 	 	 	 	
 	Leasing commissions per square foot	$5.26	 	$5.76	 	$8.29	 	$8.33	 	$4.66	 	 	 	 	 	
 	Total per square foot	$10.72	 	$13.12	 	$25.20	 	$27.35	 	$18.90	 	 	 	 	 	
 	Tenant improvements per square foot per year of lease term	$1.70	 	$1.35	 	$2.90	 	$2.97	 	$1.88	 	 	 	 	 	
 	Leasing commissions per square foot per year of lease term	$1.64	 	$1.05	 	$1.42	 	$1.30	 	$0.62	 	 	 	 	 	
 	Total per square foot per year of lease term	$3.34	 	$2.40	 	$4.32	(2) 	$4.27	(3) 	$2.50	 	 	 	 	 	
New Leases	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Number of leases	22	 	93	 	90	 	98	 	87	 	 	 	 	 	
 	Square feet	166,529	 	1,065,630	 	1,563,866	 	1,142,743	 	1,050,428	 	 	 	 	 	
 	Tenant improvements per square foot  (1)	$32.06	 	$40.78	 	$60.41	 	$34.46	 	$35.74	 	 	 	 	 	
 	Leasing commissions per square foot	$12.53	 	$15.13	 	$20.23	 	$15.19	 	$12.94	 	 	 	 	 	
 	Total per square foot	$44.59	 	$55.91	 	$80.64	 	$49.65	 	$48.68	 	 	 	 	 	
 	Tenant improvements per square foot per year of lease term	$4.91	 	$5.01	 	$5.68	 	$3.78	 	$4.17	 	 	 	 	 	
 	Leasing commissions per square foot per year of lease term	$1.92	 	$1.86	 	$1.90	 	$1.66	 	$1.51	 	 	 	 	 	
 	Total per square foot per year of lease term	$6.83	 	$6.87	 	$7.58	(4) 	$5.44	 	$5.68	 	 	 	 	 	
Total	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Number of leases	39	 	172	 	164	 	154	 	143	 	 	 	 	 	
 	Square feet	329,327	 	1,945,919	 	2,898,264	 	2,102,167	 	3,426,605	 	 	 	 	 	
 	Tenant improvements per square foot  (1)	$18.91	 	$25.66	 	$40.38	 	$27.41	 	$20.83	 	 	 	 	 	
 	Leasing commissions per square foot	$8.94	 	$10.89	 	$14.73	 	$12.06	 	$7.20	 	 	 	 	 	
 	Total per square foot	$27.85	 	$36.55	 	$55.11	 	$39.47	 	$28.03	 	 	 	 	 	
 	Tenant improvements per square foot per year of lease term	$3.87	 	$3.70	 	$4.79	 	$3.48	 	$2.64	 	 	 	 	 	
 	Leasing commissions per square foot per year of lease term	$1.83	 	$1.57	 	$1.75	 	$1.53	 	$0.91	 	 	 	 	 	
 	Total per square foot per year of lease term	$5.70	 	$5.27	 	$6.54	(4) 	$5.01	(3) 	$3.55	 	 	 	 	 	

 	 	
NOTE:	This information is presented for our consolidated office assets only and excludes activity associated with storage and licensed spaces.	
(1)	For leases under which a tenant may use, at its discretion, a portion of its tenant improvement allowance for expenses other than those related to improvements to its space, an assumption is made that the tenant elects to use any such portion of its tenant improvement allowance for improvements to its space prior to the commencement of its lease, unless the Company is notified otherwise by the tenant. This assumption is made based upon historical usage patterns of tenant improvement allowances by the Company's tenants.	
(2)	The average committed capital cost per square foot per year of lease term for renewal leases completed during 2015 was higher than our historical performance on this measure primarily as a result of four large lease renewals, two of which were completed in the Washington, D.C. market, that involved higher capital commitments. If the costs associated with those renewals were to be removed from the average committed capital cost calculation, the average committed capital cost per square foot per year of lease term for renewal leases completed during 2015 would be $3.33. The one-year lease renewal with Comdata at 5301 Maryland Way in Brentwood, TN, executed in the third quarter of 2015 was excluded from this analysis as that renewal was superseded by the long-term renewal completed during the fourth quarter of 2015.	
(3)	During 2014, we completed one large, 15-year lease renewal and expansion with a significant capital commitment with Jones Lang LaSalle at Aon Center in Chicago, IL. If the costs associated with this lease were to be removed from the average committed capital cost calculation, the average committed capital cost per square foot per year of lease term for renewal leases and total leases completed during 2014 would be $2.12 and $4.47, respectively.	
(4)	During 2015, we completed seven new leases in Washington, D.C., and Chicago, IL, comprising 680,035 square feet with above-average capital commitments. If the costs associated with those new leases were to be removed from the average committed capital cost calculation, the average committed capital cost per square foot per year of lease term for new leases and total leases completed during 2015 would be $5.42 and $4.88, respectively.	

33

Piedmont Office Realty Trust, Inc.
Geographic Diversification
As of December 31, 2016 
($ and square footage in thousands)

 	
 	 	 	 	 	 	 	 	
Location	Number of
Properties	 Annualized
Lease Revenue	 Percentage of
Annualized Lease
Revenue (%)	 Rentable
Square Footage	Percentage of
Rentable Square
Footage (%)	 Leased Square Footage	Percent Leased (%)	
Washington, D.C.	9	$112,120	19.5	2,701	14.3	2,297	85.0	
New York	4	68,139	11.8	1,767	9.3	1,744	98.7	
Chicago	5	66,821	11.6	2,094	11.1	1,923	91.8	
Atlanta	8	58,918	10.2	2,395	12.7	2,247	93.8	
Dallas	10	53,786	9.4	2,113	11.2	1,991	94.2	
Boston	10	52,032	9.0	1,828	9.7	1,819	99.5	
Minneapolis	4	49,118	8.5	1,619	8.6	1,512	93.4	
Orlando	4	41,102	7.1	1,438	7.6	1,349	93.8	
Other	11	74,094	12.9	2,930	15.5	2,907	99.2	
Total / Weighted Average	65	$576,130	100.0	18,885	100.0	17,789	94.2	

34

Piedmont Office Realty Trust, Inc.
Geographic Diversification by Location Type
As of December 31, 2016 
(square footage in thousands)

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	CBD / URBAN INFILL	 	SUBURBAN	 	TOTAL	
Location	State	 	Number of
Properties	 Percentage
of
Annualized
Lease
Revenue
(%)	 Rentable
Square
Footage	Percentage
of Rentable
Square
Footage
(%)	 	Number of
Properties	 Percentage
of
Annualized
Lease
Revenue
(%)	 Rentable
Square
Footage	Percentage
of Rentable
Square
Footage
(%)	 	Number of
Properties	 Percentage
of
Annualized
Lease
Revenue
(%)	 Rentable
Square
Footage	Percentage
of Rentable
Square
Footage
(%)	
Washington, D.C.	DC, VA, MD	 	9	19.5	2,701	14.3	 	—	—	—	—	 	9	19.5	2,701	14.3	
New York	NY, NJ	 	1	8.4	1,033	5.4	 	3	3.4	734	3.9	 	4	11.8	1,767	9.3	
Chicago	IL	 	1	6.6	967	5.1	 	4	5.0	1,127	6.0	 	5	11.6	2,094	11.1	
Atlanta	GA	 	6	9.3	2,114	11.2	 	2	0.9	281	1.5	 	8	10.2	2,395	12.7	
Dallas	TX	 	2	2.3	440	2.4	 	8	7.1	1,673	8.8	 	10	9.4	2,113	11.2	
Boston	MA	 	2	2.2	173	0.9	 	8	6.8	1,655	8.8	 	10	9.0	1,828	9.7	
Minneapolis	MN	 	1	5.1	934	5.0	 	3	3.4	685	3.6	 	4	8.5	1,619	8.6	
Orlando	FL	 	3	6.4	1,262	6.7	 	1	0.7	176	0.9	 	4	7.1	1,438	7.6	
Other	
 	 	3	7.5	1,640	8.6	 	8	5.4	1,290	6.9	 	11	12.9	2,930	15.5	
Total / Weighted Average	 	28	67.3	11,264	59.6	 	37	32.7	7,621	40.4	 	65	100.0	18,885	100.0	

35

Piedmont Office Realty Trust, Inc.
Industry Diversification
As of December 31, 2016 
($ and square footage in thousands)

 	
 	 	 	 	 	 	 	
 	 	 	 	Percentage of	 	 	
 	Number of	Percentage of Total	Annualized Lease	Annualized Lease	Leased Square	Percentage of Leased	
Industry	Tenants	Tenants (%)	Revenue	Revenue (%)	Footage	Square Footage (%)	
Governmental Entity	4	0.6	$83,170	14.4	1,674	9.4	
Business Services	85	13.1	57,851	10.0	2,069	11.6	
Depository Institutions	18	2.8	41,396	7.2	1,398	7.9	
Engineering, Accounting, Research, Management & Related Services	74	11.4	39,039	6.8	1,106	6.2	
Insurance Carriers	22	3.4	30,033	5.2	1,192	6.7	
Nondepository Credit Institutions	16	2.5	29,385	5.1	951	5.3	
Insurance Agents, Brokers & Services	21	3.2	28,936	5.0	963	5.4	
Security & Commodity Brokers, Dealers, Exchanges & Services	40	6.2	22,488	3.9	720	4.0	
Legal Services	54	8.3	21,609	3.8	706	4.0	
Communications	37	5.7	20,198	3.5	630	3.5	
Electronic & Other Electrical Equipment & Components, Except Computer	12	1.8	19,959	3.5	581	3.3	
Educational Services	7	1.1	15,115	2.6	386	2.2	
Real Estate	32	4.9	14,601	2.5	467	2.6	
Eating & Drinking Places	42	6.5	14,164	2.5	459	2.6	
Food & Kindred Products	3	0.5	11,995	2.1	408	2.3	
Other	182	28.0	126,191	21.9	4,079	23.0	
Total	649	100.0	$576,130	100.0	17,789	100.0	

36

Piedmont Office Realty Trust, Inc.
Property Investment Activity
As of December 31, 2016 
($ and square footage in thousands)

Acquisitions Over Previous Eighteen Months

Property	 	Location	Acquisition Date	Percent
Ownership (%)	Year Built	Purchase Price	 Rentable Square
Footage	 Percent Leased at
Acquisition (%)	
80 Central Street	 	Boxborough, MA	7/24/2015	100	1988	$13,500	150	93	
SunTrust Center	 	Orlando, FL	11/4/2015	100	1988	170,804	655	89	
Galleria 300	 	Atlanta, GA	11/4/2015	100	1987	88,317	433	89	
Glenridge Highlands One	 	Atlanta, GA	11/24/2015	100	1998	63,562	290	90	
Suwanee Gateway Land	 	Suwanee, GA	12/21/2015	100	N/A	1,350	N/A	N/A	
CNL Center I and CNL Center II	 	Orlando, FL	8/1/2016	99	1999 / 2006	166,745	622	95	
One Wayside Road	 	Burlington, MA	8/10/2016	100	1997	62,900	201	100	
Galleria 200	 	Atlanta, GA	10/7/2016	100	1984	69,604	432	89	
750 West John Carpenter Freeway	 	Irving, TX	11/30/2016	100	1999	49,585	315	78	
John Carpenter Freeway Land	 	Irving, TX	11/30/2016	100	N/A	1,000	N/A	N/A	
Total / Weighted Average	 	 	 	 	 	$687,367	3,098	90	

Dispositions Over Previous Eighteen Months

Property	 	Location	Disposition Date	Percent
Ownership (%)	Year Built	Sale Price	 Rentable Square
Footage	 Percent Leased at
Disposition (%)	
Eastpoint I & Eastpoint II	Mayfield Heights, OH	7/28/2015	100	2000	$18,500	170	91	
3750 Brookside Parkway	 	Alpharetta, GA	8/10/2015	100	2001	14,086	105	91	
Chandler Forum	 	Chandler, AZ	9/1/2015	100	2003	33,900	150	100	
Aon Center	 	Chicago, IL	10/29/2015	100	1972	712,000	2,738	87	
2 Gatehall Drive	 	Parsippany, NJ	12/21/2015	100	1985	51,000	405	100	
1055 East Colorado Boulevard	 	Pasadena, CA	4/21/2016	100	2001	61,250	176	99	
Fairway Center II	 	Brea, CA	4/28/2016	100	2002	33,800	134	97	
1901 Main Street	 	Irvine, CA	5/2/2016	100	2001	66,000	173	100	
9221 Corporate Boulevard	 	Rockville, MD	7/27/2016	100	1989	12,650	115	0	
150 West Jefferson	 	Detroit, MI	7/29/2016	100	1989	81,500	490	88	
9200 & 9211 Corporate Boulevard	 	Rockville, MD	9/28/2016	100	1982 / 1989	13,250	225	19	
11695 Johns Creek Parkway	 	Johns Creek, GA	12/22/2016	100	2001	14,000	101	91	
Braker Pointe III	 	Austin, TX	12/29/2016	100	2001	49,250	196	18	
Total / Weighted Average	 	 	 	 	 	$1,161,186	5,178	83	

 	

 	 	 	 	 	 	 	 	 	

37

Piedmont Office Realty Trust, Inc.
Other Investments
As of December 31, 2016 
($ and square footage in thousands)

Unconsolidated Joint Venture Properties

Property	Location	Percent
Ownership (%)	Year Built	Piedmont Share
of Real Estate
Net Book Value	 Real Estate
Net Book Value	 Rentable
Square Footage	 Percent
Leased (%)	
8560 Upland Drive	Englewood, CO	72	2001	$6,923	$9,630	148.6	100	

Land Parcels

Property	Location	Adjacent Piedmont Property	Acres	Real Estate Book Value	
Gavitello	 Atlanta, GA	The Medici	2.0	$2,708	
Glenridge Highlands Three	 Atlanta, GA	Glenridge Highlands One and Two	3.0	1,853	
Suwanee Gateway	Suwanee, GA	Suwanee Gateway One	5.0	1,401	
State Highway 161	 Irving, TX	Las Colinas Corporate Center I and II, 161 Corporate Center	4.5	3,320	
Royal Lane	Irving, TX	6011, 6021 and 6031 Connection Drive	10.6	2,834	
John Carpenter Freeway	Irving, TX	750 West John Carpenter Freeway	3.5	1,000	
TownPark	Lake Mary, FL	400 and 500 TownPark	18.9	6,096	
Total	 	 	47.5	$19,212	

Development - Lease-Up

Property	Location	Adjacent Piedmont Property	Construction Type	Actual or Targeted Completion Date	Percent Leased (%)	Square Feet	Project Capital Expended (1)
(Cash)	
Enclave Place	 Houston, TX	1430 Enclave Parkway	Development	Q3 2015	—	300.9	$63,802	
3100 Clarendon Boulevard	Arlington, VA	Not Applicable	Redevelopment	Q4 2015	38	261.8	45,546	
500 TownPark (2)	Lake Mary, FL	400 TownPark	Development	Q4 2016	79	134.4	$18,914	
Total	 	 	 	 	 	697.1	$128,262	

 	
 	 	
(1)	Inclusive of tenant improvement and leasing costs. Predominately tenant improvement and leasing costs for the lease-up of each property remain and will vary by tenant and by market.	
(2)	Please note that the measurement for the building and the lease have changed. Since the building is completed, official BOMA space measurements were taken and the results of those measurements have been included herein.	

38

Piedmont Office Realty Trust, Inc.
Supplemental Definitions

 	
 	
Included below are definitions of various terms used throughout this supplemental report, including definitions of certain non-GAAP financial measures and the reasons why the Company’s management believes these measures provide useful information to investors about the Company’s financial condition and results of operations. Reconciliations of any non-GAAP financial measures defined below are included beginning on page41.

 	
 	
Adjusted Funds From Operations ("AFFO"): The Company calculates AFFO by starting with Core FFO and adjusting for non-incremental capital expenditures and acquisition-related costs and then adding back non-cash items including: non-real estate depreciation, straight-lined rents and fair value lease adjustments, non-cash components of interest expense and compensation expense, and by making similar adjustments for unconsolidated partnerships and joint ventures. AFFO is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of the Company’s operating performance. The Company believes that AFFO is helpful to investors as a meaningful supplemental comparative performance measure of our ability to make incremental capital investments. Other REITs may not define AFFO in the same manner as the Company; therefore, the Company’s computation of AFFO may not be comparable to that of other REITs.	
 	
Annualized Lease Revenue ("ALR"): ALR is calculated by multiplying (i) rental payments (defined as base rent plus operating expense reimbursements, if payable by the tenant on a monthly basis under the terms of a lease that has been executed, but excluding a) rental abatements and b) rental payments related to executed but not commenced leases for space that was covered by an existing lease), by (ii) 12. In instances in which contractual rents or operating expense reimbursements are collected on an annual, semi-annual, or quarterly basis, such amounts are multiplied by a factor of 1, 2, or 4, respectively, to calculate the annualized figure. For leases that have been executed but not commenced relating to un-leased space, ALR is calculated by multiplying (i) the monthly base rental payment (excluding abatements) plus any operating expense reimbursements for the initial month of the lease term, by (ii) 12. Unless stated otherwise, this measure excludes revenues associated with our unconsolidated joint venture properties and development / re-development properties, if any.	
 	
Core EBITDA: The Company calculates Core EBITDA as net income (computed in accordance with GAAP) before interest, taxes, depreciation and amortization and incrementally removing any impairment losses, gains or losses from sales of property and other significant infrequent items that create volatility within our earnings and make it difficult to determine the earnings generated by our core ongoing business. Core EBITDA is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of the Company’s operating performance. The Company believes that Core EBITDA is helpful to investors as a supplemental performance measure because it provides a metric for understanding the performance of the Company’s results from ongoing operations without taking into account the effects of non-cash expenses (such as depreciation and amortization), as well as items that are not part of normal day-to-day operations of the Company’s business. Other REITs may not define Core EBITDA in the same manner as the Company; therefore, the Company’s computation of Core EBITDA may not be comparable to that of other REITs.	
 	
Core Funds From Operations ("Core FFO"): The Company calculates Core FFO by starting with FFO, as defined by NAREIT, and adjusting for gains or losses on the extinguishment of swaps and/or debt, acquisition-related expenses and any significant non-recurring items. Core FFO is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of the Company’s operating performance. The Company believes that Core FFO is helpful to investors as a supplemental performance measure because it excludes the effects of certain items which can create significant earnings volatility, but which do not directly relate to the Company’s core business operations. As a result, the Company believes that Core FFO can help facilitate comparisons of operating performance between periods and provides a more meaningful predictor of future earnings potential. Other REITs may not define Core FFO in the same manner as the Company; therefore, the Company’s computation of Core FFO may not be comparable to that of other REITs.	
 	
EBITDA: EBITDA is defined as net income before interest, taxes, depreciation and amortization.	
 	
Funds From Operations ("FFO"): The Company calculates FFO 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 and impairment losses, adding back depreciation and amortization on real estate assets, and after the same adjustments for unconsolidated partnerships and joint ventures. These adjustments can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates. FFO is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of the Company’s operating performance. The Company believes that FFO is helpful to investors as a supplemental performance measure because it excludes the effects of depreciation, amortization and gains or losses from sales of real estate, all of which are based on historical costs, which implicitly assumes that the value of real estate diminishes predictably over time. The Company also believes that FFO can help facilitate comparisons of operating performance between periods and with other REITs. However, other REITs may not define FFO in accordance with the NAREIT definition, or may interpret the current NAREIT definition differently than the Company; therefore, the Company’s computation of FFO may not be comparable to that of such other REITs.	
 	
Gross Assets: Gross Assets is defined as total assets with the add-back of accumulated depreciation and accumulated amortization related to real estate assets.	
 	
Gross Real Estate Assets: Gross Real Estate Assets is defined as total real estate assets with the add-back of accumulated depreciation and accumulated amortization related to real estate assets.	
 	
Incremental Capital Expenditures: Incremental Capital Expenditures are defined as capital expenditures of a non-recurring nature that incrementally enhance the underlying assets' income generating capacity. Tenant improvements, leasing commissions, building capital and deferred lease incentives ("Leasing Costs") incurred to lease space that was vacant at acquisition, Leasing Costs for spaces vacant for greater than one year, Leasing Costs for spaces at newly acquired properties for which in-place leases expire shortly after acquisition, improvements associated with the expansion of a building and renovations that change the underlying classification of a building are included in this measure.	
 	
NOI from Unconsolidated Joint Ventures: NOI from Unconsolidated Joint Ventures is defined as Property NOI attributable to our interests in properties owned through unconsolidated partnerships. We present this measure on an accrual basis and a cash basis, which eliminates the effects of straight lined rents and fair value lease revenue. NOI from Unconsolidated Joint Ventures is a non-GAAP measure and therefore may not be comparable to similarly defined data provided by other REITs.	
 	
Non-Incremental Capital Expenditures: Non-Incremental Capital Expenditures are defined as capital expenditures of a recurring nature related to tenant improvements and leasing commissions that do not incrementally enhance the underlying assets' income generating capacity. We exclude first generation tenant improvements and leasing commissions from this measure, in addition to other capital expenditures that qualify as Incremental Capital Expenditures, as defined above.	
 	
Property Net Operating Income ("Property NOI"): The Company calculates Property NOI by starting with Core EBITDA and adjusting for general and administrative expense, income associated with property management performed by Piedmont for other organizations and other income or expense items for the Company, such as interest income from loan investments or costs from the pursuit of non-consummated transactions. The Company may present this measure on an accrual basis or a cash basis. When presented on a cash basis, the effects of straight lined rents and fair value lease revenue are also eliminated. Property NOI is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of the Company’s operating performance. The Company believes that Property NOI is helpful to investors as a supplemental comparative performance measure of income generated by its properties alone without the administrative overhead of the Company. Other REITs may not define Property NOI in the same manner as the Company; therefore, the Company’s computation of Property NOI may not be comparable to that of other REITs.	
 	
Same Store Net Operating Income ("Same Store NOI"): The Company calculates Same Store NOI as Property NOI attributable to the properties owned and not under development / redevelopment during the entire span of the current and prior year reporting periods. Same Store NOI also excludes amounts attributable to unconsolidated joint venture and land assets. The Company may present this measure on an accrual basis or a cash basis. When presented on a cash basis, the effects of straight lined rents and fair value lease revenue are also eliminated. Same Store NOI is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of the Company’s operating performance. The Company believes that Same Store NOI is helpful to investors as a supplemental comparative performance measure of the income generated from the same group of properties from one period to the next. Other REITs may not define Same Store NOI in the same manner as the Company; therefore, the Company’s computation of Same Store NOI may not be comparable to that of other REITs.	
 	
Same Store Properties: Same Store Properties is defined as properties owned and not under development / redevelopment during the entire span of the current and prior year reporting periods. Same Store Properties excludes unconsolidated joint venture and land assets.	

39

Piedmont Office Realty Trust, Inc.
Research Coverage

Equity Research Coverage

Barry Oxford	Jed Reagan	Anthony Paolone, CFA	Steve Manaker, CFA	
D.A. Davidson & Company	Green Street Advisors	JP Morgan	Oppenheimer & Co.	
260 Madison Avenue, 8th Floor	660 Newport Center Drive, Suite 800	383 Madison Avenue	85 Broad Street	
New York, NY 10016	Newport Beach, CA 92660	34th Floor	New York, NY 10004	
Phone: (212) 240-9871	Phone: (949) 640-8780	New York, NY 10179	Phone: (212) 667-5950	
 	 	Phone: (212) 622-6682	 	

David Rodgers, CFA	John W. Guinee, III	Michael Lewis, CFA	 	
Robert W. Baird & Co.	Erin Aslakson	SunTrust Robinson Humphrey	 	
200 Public Square	Stifel, Nicolaus & Company	711 Fifth Avenue, 14th Floor	 	
Suite 1650	One South Street	New York, NY 10022	 	
Cleveland, OH 44139	16th Floor	Phone: (212) 319-5659	 	
Phone: (216) 737-7341	Baltimore, MD 21202	 	 	
 	Phone: (443) 224-1307	 	 	

 	 	 	 	

Fixed Income Research Coverage

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

 	 	 	

40

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

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Three Months Ended	 	Twelve Months Ended	
 	12/31/2016	 	9/30/2016	 	6/30/2016	 	3/31/2016	 	12/31/2015	 	12/31/2016	 	12/31/2015	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP net income applicable to common stock	$	30,189	
 	 	$	(12,746	)	 	$	80,072	
 	 	$	10,372	
 	 	$	125,644	
 	 	$	107,887	
 	 	$	172,990	
 	
Depreciation (1)(2)	32,597	
 	 	31,451	
 	 	31,442	
 	 	31,639	
 	 	30,867	
 	 	127,129	
 	 	133,992	
 	
Amortization (1)	21,259	
 	 	18,640	
 	 	17,418	
 	 	17,822	
 	 	17,257	
 	 	75,139	
 	 	60,951	
 	
Impairment loss (1)	—	
 	 	22,590	
 	 	8,308	
 	 	—	
 	 	—	
 	 	30,898	
 	 	40,169	
 	
Loss / (gain) on sale of properties  (1)	(19,652	)	 	57	
 	 	(78,987	)	 	20	
 	 	(114,412	)	 	(98,562	)	 	(168,236	)	
NAREIT funds from operations applicable to common stock	64,393	
 	 	59,992	
 	 	58,253	
 	 	59,853	
 	 	59,356	
 	 	242,491	
 	 	239,866	
 	
Adjustments:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Acquisition costs	4	
 	 	955	
 	 	5	
 	 	12	
 	 	644	
 	 	976	
 	 	919	
 	
Loss / (gain) on extinguishment of swaps	—	
 	 	—	
 	 	—	
 	 	—	
 	 	(94	)	 	—	
 	 	38	
 	
Net (recoveries) / loss from casualty events and litigation settlements  (1)	—	
 	 	(34	)	 	—	
 	 	—	
 	 	278	
 	 	(34	)	 	278	
 	
Core funds from operations applicable to common stock	64,397	
 	 	60,913	
 	 	58,258	
 	 	59,865	
 	 	60,184	
 	 	243,433	
 	 	241,101	
 	
Adjustments:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Amortization of debt issuance costs, fair market adjustments on notes payable, and discount on senior notes	667	
 	 	653	
 	 	643	
 	 	647	
 	 	642	
 	 	2,610	
 	 	2,547	
 	
Depreciation of non real estate assets	246	
 	 	216	
 	 	175	
 	 	204	
 	 	226	
 	 	841	
 	 	755	
 	
Straight-line effects of lease revenue  (1)	(6,429	)	 	(4,140	)	 	(3,127	)	 	(7,848	)	 	(4,960	)	 	(21,544	)	 	(15,734	)	
Stock-based and other non-cash compensation expense	284	
 	 	1,931	
 	 	1,477	
 	 	1,928	
 	 	2,051	
 	 	5,620	
 	 	7,090	
 	
Amortization of lease-related intangibles (1)	(1,385	)	 	(1,152	)	 	(1,290	)	 	(1,238	)	 	(1,202	)	 	(5,065	)	 	(4,571	)	
Acquisition costs	(4	)	 	(955	)	 	(5	)	 	(12	)	 	(644	)	 	(976	)	 	(919	)	
Non-incremental capital expenditures	(12,135	)	 	(6,982	)	 	(6,455	)	 	(9,996	)	 	(13,939	)	 	(35,568	)	 	(44,136	)	
Adjusted funds from operations applicable to common stock	$	45,641	
 	 	$	50,484	
 	 	$	49,676	
 	 	$	43,550	
 	 	$	42,358	
 	 	$	189,351	
 	 	$	186,133	

 	
 	 	
(1)	Includes adjustments for consolidated properties, including discontinued operations, and for our proportionate share of amounts attributable to unconsolidated joint ventures.	
(2)	Excludes depreciation of non real estate assets.	

41

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

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Three Months Ended	 	Twelve Months Ended	
 	12/31/2016	 	9/30/2016	 	6/30/2016	 	3/31/2016	 	12/31/2015	 	12/31/2016	 	12/31/2015	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to Piedmont	$	30,189	
 	 	$	(12,746	)	 	$	80,072	
 	 	$	10,372	
 	 	$	125,644	
 	 	$	107,887	
 	 	$	172,990	
 	
Net income attributable to noncontrolling interest	(8	)	 	(15	)	 	4	
 	 	4	
 	 	3	
 	 	(15	)	 	15	
 	
Interest expense	16,566	
 	 	15,496	
 	 	16,413	
 	 	16,385	
 	 	17,978	
 	 	64,860	
 	 	73,998	
 	
Depreciation	32,844	
 	 	31,667	
 	 	31,616	
 	 	31,843	
 	 	31,093	
 	 	127,970	
 	 	134,747	
 	
Amortization	21,259	
 	 	18,640	
 	 	17,418	
 	 	17,822	
 	 	17,257	
 	 	75,139	
 	 	60,951	
 	
Acquisition costs	4	
 	 	955	
 	 	5	
 	 	12	
 	 	644	
 	 	976	
 	 	919	
 	
Impairment loss	—	
 	 	22,590	
 	 	8,308	
 	 	—	
 	 	—	
 	 	30,898	
 	 	40,169	
 	
Net (recoveries) / loss from casualty events and litigation settlements	—	
 	 	(34	)	 	—	
 	 	—	
 	 	278	
 	 	(34	)	 	278	
 	
Loss / (gain) on sale of properties	(19,652	)	 	57	
 	 	(78,987	)	 	20	
 	 	(114,412	)	 	(98,562	)	 	(168,236	)	
Core EBITDA	81,202	
 	 	76,610	
 	 	74,849	
 	 	76,458	
 	 	78,485	
 	 	309,119	
 	 	315,831	
 	
General & administrative expenses	5,741	
 	 	7,437	
 	 	8,351	
 	 	7,777	
 	 	7,601	
 	 	29,306	
 	 	30,388	
 	
Management fee revenue	(224	)	 	(294	)	 	(224	)	 	(292	)	 	(224	)	 	(1,034	)	 	(1,115	)	
Other (income) / expense	(459	)	 	(235	)	 	543	
 	 	(307	)	 	(992	)	 	(458	)	 	(2,484	)	
Straight-line effects of lease revenue	(6,429	)	 	(4,140	)	 	(3,127	)	 	(7,848	)	 	(4,960	)	 	(21,544	)	 	(15,734	)	
Amortization of lease-related intangibles	(1,385	)	 	(1,152	)	 	(1,290	)	 	(1,238	)	 	(1,202	)	 	(5,065	)	 	(4,571	)	
Property net operating income (cash basis)	78,446	
 	 	78,226	
 	 	79,102	
 	 	74,550	
 	 	78,708	
 	 	310,324	
 	 	322,315	
 	
Deduct net operating (income) / loss from:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Acquisitions	(9,431	)	 	(8,057	)	 	(5,437	)	 	(5,215	)	 	(2,997	)	 	(28,140	)	 	(5,070	)	
Dispositions	(209	)	 	253	
 	 	(4,006	)	 	(5,199	)	 	(10,423	)	 	(9,161	)	 	(56,276	)	
Other investments	(120	)	 	(322	)	 	52	
 	 	(70	)	 	(251	)	 	(461	)	 	(793	)	
Same store net operating income (cash basis)	$	68,686	
 	 	$	70,100	
 	 	$	69,711	
 	 	$	64,066	
 	 	$	65,037	
 	 	$	272,562	
 	 	$	260,176	

42

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

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Three Months Ended	 	Twelve Months Ended	
 	12/31/2016	 	9/30/2016	 	6/30/2016	 	3/31/2016	 	12/31/2015	 	12/31/2016	 	12/31/2015	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Equity in income of unconsolidated joint ventures	$	8	
 	 	$	128	
 	 	$	111	
 	 	$	115	
 	 	$	135	
 	 	$	362	
 	 	$	553	

Interest expense	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	

Depreciation	65	
 	 	63	
 	 	61	
 	 	61	
 	 	60	
 	 	249	
 	 	245	

Amortization	8	
 	 	16	
 	 	16	
 	 	16	
 	 	16	
 	 	56	
 	 	64	

Impairment loss	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	

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

Core EBITDA	81	
 	 	207	
 	 	188	
 	 	192	
 	 	211	
 	 	667	
 	 	862	

General and administrative expenses	15	
 	 	8	
 	 	34	
 	 	4	
 	 	6	
 	 	63	
 	 	42	

Other (income) / expense	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	

Property net operating income (accrual basis)	96	
 	 	215	
 	 	222	
 	 	196	
 	 	217	
 	 	730	
 	 	904	

Straight-line effects of lease revenue	(1	)	 	1	
 	 	—	
 	 	1	
 	 	(3	)	 	—	
 	 	(16	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Amortization of lease-related intangibles	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	

Property net operating income (cash basis)	$	95	
 	 	$	216	
 	 	$	222	
 	 	$	197	
 	 	$	214	
 	 	$	730	
 	 	$	888	

43

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

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Three Months Ended	 	Twelve Months Ended	
 	12/31/2016	 	9/30/2016	 	6/30/2016	 	3/31/2016	 	12/31/2015	 	12/31/2016	 	12/31/2015	
Revenues:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental income	$	—	
 	 	$	—	
 	 	$	—	
 	 	$	—	
 	 	$	—	
 	 	$	—	
 	 	$	19	
 	
Tenant reimbursements	—	
 	 	—	
 	 	—	
 	 	—	
 	 	67	
 	 	—	
 	 	64	
 	
Property management fee revenue	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	
Other rental income	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	
 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	67	
 	 	—	
 	 	83	
 	
Expenses:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property operating costs	—	
 	 	—	
 	 	—	
 	 	—	
 	 	(3	)	 	—	
 	 	(1	)	
Depreciation	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	
Amortization	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	
General and administrative	—	
 	 	(1	)	 	1	
 	 	—	
 	 	(1	)	 	—	
 	 	—	
 	
 	—	
 	 	(1	)	 	1	
 	 	—	
 	 	(4	)	 	—	
 	 	(1	)	
Other income / (expense):	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest expense	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	
Other income / (expense)	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	
Net recoveries / (loss) from casualty events and litigation settlements	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	
Net income attributable to noncontrolling interest	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	
 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	

Operating income, excluding impairment loss and gain / (loss) on sale	—	
 	 	1	
 	 	(1	)	 	—	
 	 	71	
 	 	—	
 	 	84	

Impairment loss	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	
Gain / (loss) on sale of properties	—	
 	 	—	
 	 	—	
 	 	—	
 	 	1	
 	 	—	
 	 	(1	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from discontinued operations	$	—	
 	 	$	1	
 	 	$	(1	)	 	$	—	
 	 	$	72	
 	 	$	—	
 	 	$	83	

44

Piedmont Office Realty Trust, Inc.
Property Detail - In-Service Portfolio(1) 
As of December 31, 2016 
(in thousands)

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property	City	State	Percent
Ownership	Year Built	Rentable
Square
Footage
Owned	Leased
Percentage	Commenced
Leased
Percentage	Economic
Leased
Percentage  (2)	Annualized Lease Revenue	
 	 	 	 	 	 	 	 	 	 	
Atlanta	 	 	 	 	 	 	 	 	 	
Glenridge Highlands Two	 Atlanta	 GA	100.0%	2000	427	99.5	%	99.5	%	99.5	%	11,471	
 	
Suwanee Gateway One	 Suwanee	 GA	100.0%	2008	143	50.3	%	46.9	%	46.9	%	1,661	
 	
The Dupree	 Atlanta	 GA	100.0%	1997	138	100.0	%	100.0	%	100.0	%	3,568	
 	
The Medici	 Atlanta	 GA	100.0%	2008	158	96.8	%	96.8	%	93.7	%	4,350	
 	
1155 Perimeter Center West	 Atlanta	 GA	100.0%	2000	377	100.0	%	100.0	%	100.0	%	10,023	
 	
Galleria 300	 Atlanta	 GA	100.0%	1987	432	97.0	%	95.1	%	88.4	%	10,773	
 	
Glenridge Highlands One	 Atlanta	 GA	100.0%	1998	288	98.6	%	97.6	%	89.2	%	7,758	
 	
Galleria 200	 Atlanta	 GA	100.0%	1984	432	87.7	%	82.9	%	55.8	%	9,314	
 	
Metropolitan Area Subtotal / Weighted Average	 	 	 	 	2,395	93.8	%	92.3	%	85.0	%	58,918	
 	
Boston	 	 	 	 	 	 	 	 	 	
1200 Crown Colony Drive	 Quincy	 MA	100.0%	1990	235	100.0	%	100.0	%	100.0	%	4,423	
 	
80 Central Street	 Boxborough	 MA	100.0%	1988	150	94.0	%	94.0	%	88.0	%	2,795	
 	
90 Central Street	 Boxborough	 MA	100.0%	2001	175	100.0	%	100.0	%	100.0	%	3,803	
 	
1414 Massachusetts Avenue	 Cambridge	 MA	100.0%	1873	78	100.0	%	100.0	%	100.0	%	5,009	
 	
One Brattle Square	 Cambridge	 MA	100.0%	1991	95	100.0	%	100.0	%	100.0	%	7,552	
 	
225 Presidential Way	 Woburn	 MA	100.0%	2001	202	100.0	%	100.0	%	100.0	%	2,938	
 	
235 Presidential Way	 Woburn	 MA	100.0%	2000	238	100.0	%	100.0	%	100.0	%	3,451	
 	
5 & 15 Wayside Road	 Burlington	 MA	100.0%	1999 / 2001	272	100.0	%	100.0	%	100.0	%	8,699	
 	
5 Wall Street	 Burlington	 MA	100.0%	2008	182	100.0	%	100.0	%	100.0	%	6,696	
 	
One Wayside Road	 Burlington	 MA	100.0%	1997	201	100.0	%	100.0	%	100.0	%	6,666	
 	
Metropolitan Area Subtotal / Weighted Average	 	 	 	 	1,828	99.5	%	99.5	%	99.0	%	52,032	
 	
Chicago	 	 	 	 	 	 	 	 	 	
Windy Point I	 Schaumburg	 IL	100.0%	1999	187	66.3	%	66.3	%	66.3	%	3,626	
 	
Windy Point II	 Schaumburg	 IL	100.0%	2001	301	100.0	%	100.0	%	100.0	%	8,713	
 	
Two Pierce Place	 Itasca	 IL	100.0%	1991	486	96.7	%	96.7	%	96.7	%	13,279	
 	
2300 Cabot Drive	 Lisle	 IL	100.0%	1998	153	76.5	%	74.5	%	73.2	%	2,770	
 	
500 West Monroe Street	Chicago	 IL	100.0%	1991	967	94.2	%	88.6	%	71.5	%	38,433	
 	
Metropolitan Area Subtotal / Weighted Average	 	 	 	 	2,094	91.8	%	89.1	%	81.1	%	66,821	

45

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property	City	State	Percent
Ownership	Year Built	Rentable
Square
Footage
Owned	Leased
Percentage	Commenced
Leased
Percentage	Economic
Leased
Percentage  (2)	Annualized Lease Revenue	
Dallas	

 	

 	

 	
6031 Connection Drive	 Irving	 TX	100.0%	1999	232	100.0	%	94.4	%	87.9	%	6,275	
 	
6021 Connection Drive	 Irving	 TX	100.0%	2000	222	100.0	%	100.0	%	100.0	%	5,681	
 	
6011 Connection Drive	 Irving	 TX	100.0%	1999	152	100.0	%	100.0	%	100.0	%	3,964	
 	
Las Colinas Corporate Center I	 Irving	 TX	100.0%	1998	159	97.5	%	94.3	%	94.3	%	3,973	
 	
Las Colinas Corporate Center II	 Irving	 TX	100.0%	1998	228	96.9	%	96.9	%	96.9	%	5,725	
 	
6565 North MacArthur Boulevard	 Irving	 TX	100.0%	1998	260	93.5	%	91.2	%	90.0	%	6,478	
 	
One Lincoln Park	 Dallas	 TX	100.0%	1999	262	95.8	%	95.8	%	88.9	%	7,296	
 	
161 Corporate Center	 Irving	 TX	100.0%	1998	105	95.2	%	95.2	%	95.2	%	2,381	
 	
Park Place on Turtle Creek	 Dallas	 TX	100.0%	1986	178	95.5	%	91.6	%	90.4	%	5,943	
 	
750 West John Carpenter Freeway	 Irving	 TX	100.0%	1999	315	77.8	%	77.8	%	77.8	%	6,070	
 	
Metropolitan Area Subtotal / Weighted Average	

 	
 	2,113	94.2	%	92.8	%	91.0	%	53,786	
 	
Minneapolis	

 	

 	

 	
Crescent Ridge II	Minnetonka	MN	100.0%	2000	301	86.7	%	86.7	%	83.4	%	8,165	
 	
US Bancorp Center	Minneapolis	MN	100.0%	2000	934	93.0	%	88.8	%	87.5	%	29,484	
 	
One Meridian Crossings	Richfield	MN	100.0%	1997	195	100.0	%	100.0	%	100.0	%	5,890	
 	
Two Meridian Crossings	Richfield	MN	100.0%	1998	189	98.9	%	98.9	%	98.9	%	5,579	
 	
Metropolitan Area Subtotal / Weighted Average	

 	
 	1,619	93.4	%	90.9	%	89.6	%	49,118	
 	
New York	

 	

 	

 	
200 Bridgewater Crossing	Bridgewater	NJ	100.0%	2002	309	99.0	%	99.0	%	99.0	%	9,042	
 	
60 Broad Street	New York	NY	100.0%	1962	1,033	100.0	%	100.0	%	100.0	%	48,234	
 	
600 Corporate Drive	Lebanon	NJ	100.0%	2005	125	100.0	%	100.0	%	100.0	%	2,480	
 	
400 Bridgewater Crossing	Bridgewater	NJ	100.0%	2002	300	93.3	%	93.3	%	69.3	%	8,383	
 	
Metropolitan Area Subtotal / Weighted Average	

 	
 	1,767	98.7	%	98.7	%	94.6	%	68,139	
 	
Orlando	

 	

 	

 	
400 TownPark	Lake Mary	FL	100.0%	2008	176	100.0	%	97.2	%	85.8	%	4,349	
 	
SunTrust Center	Orlando	FL	100.0%	1988	644	91.1	%	89.1	%	69.1	%	18,982	
 	
CNL Center I	Orlando	FL	99.0%	1999	348	96.3	%	96.3	%	96.3	%	10,198	
 	
CNL Center II	Orlando	FL	99.0%	2006	270	93.0	%	93.0	%	82.6	%	7,573	
 	
Metropolitan Area Subtotal / Weighted Average	

 	
 	1,438	93.8	%	92.6	%	80.3	%	41,102	
 	
Washington, D.C.	

 	

 	

 	
1201 Eye Street	Washington	DC	49.5% (3)	2001	269	90.7	%	65.1	%	65.1	%	14,240	
 	
1225 Eye Street	Washington	DC	49.5% (3)	1986	225	92.0	%	90.7	%	78.7	%	10,594	
 	
400 Virginia Avenue	Washington	DC	100.0%	1985	224	83.0	%	80.4	%	80.4	%	9,146	
 	
4250 North Fairfax Drive	Arlington	VA	100.0%	1998	308	83.1	%	56.5	%	40.3	%	11,801	
 	
One Independence Square	Washington	DC	100.0%	1991	334	77.8	%	67.1	%	—	%	12,005	
 	
Two Independence Square	Washington	DC	100.0%	1991	606	100.0	%	100.0	%	100.0	%	29,902	
 	
Piedmont Pointe I	Bethesda	MD	100.0%	2007	186	68.8	%	68.8	%	68.8	%	5,120	
 	
Piedmont Pointe II	Bethesda	MD	100.0%	2008	223	60.5	%	60.5	%	60.1	%	5,445	
 	
Arlington Gateway	Arlington	VA	100.0%	2005	326	84.4	%	84.4	%	72.1	%	13,867	
 	
Metropolitan Area Subtotal / Weighted Average	

 	
 	2,701	85.0	%	77.8	%	65.1	%	112,120	

46

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property	City	State	Percent
Ownership	Year Built	Rentable
Square
Footage
Owned	Leased
Percentage	Commenced
Leased
Percentage	Economic
Leased
Percentage  (2)	Annualized Lease Revenue	
 	 	 	 	 	 	 	 	 	 	
Other	

 	

 	

 	
Desert Canyon 300	Phoenix	AZ	100.0%	2001	149	95.3	%	95.3	%	95.3	%	3,459	
 	
800 North Brand Boulevard	Glendale	CA	100.0%	1990	527	100.0	%	100.0	%	99.4	%	16,579	
 	
Sarasota Commerce Center II	Sarasota	FL	100.0%	1999	149	93.3	%	93.3	%	82.6	%	3,303	
 	
5601 Hiatus Road	Tamarac	FL	100.0%	2001	100	100.0	%	100.0	%	100.0	%	2,815	
 	
2001 NW 64th Street	Ft. Lauderdale	FL	100.0%	2001	48	100.0	%	100.0	%	100.0	%	1,270	
 	
Auburn Hills Corporate Center	Auburn Hills	MI	100.0%	2001	120	95.0	%	95.0	%	80.8	%	2,365	
 	
1075 West Entrance Drive	Auburn Hills	MI	100.0%	2001	210	100.0	%	100.0	%	100.0	%	4,512	
 	
1901 Market Street	Philadelphia	PA	100.0%	1987	801	100.0	%	100.0	%	100.0	%	18,370	
 	
2120 West End Avenue	Nashville	TN	100.0%	2000	312	100.0	%	100.0	%	100.0	%	8,137	
 	
5301 Maryland Way	Brentwood	TN	100.0%	1989	201	100.0	%	100.0	%	100.0	%	2,161	
 	
1430 Enclave Parkway	Houston	TX	100.0%	1994	313	100.0	%	100.0	%	100.0	%	11,123	
 	
Subtotal / Weighted Average	

 	
 	2,930	99.2	%	99.2	%	98.0	%	74,094	

 	

 	

 	

 	
Grand Total	

 	
 	18,885	94.2	%	92.2	%	86.7	%	$576,130	

 	

 	

 	

 	
 	 	
(1)	This schedule includes information for Piedmont's in-service portfolio of properties only. It excludes information for the Company's equity interest in one property owned through an unconsolidated joint venture, two properties under development, and one property that was taken out of service for redevelopment. Information on properties excluded from this schedule can be found on page38.	
(2)	Economic leased percentage excludes the square footage associated with executed but not commenced leases for currently vacant spaces and the square footage associated with tenants receiving rental abatements (after proportional adjustments for tenants receiving only partial rental abatements).	
(3)	Although Piedmont owns 49.5% of the asset, it is entitled to 100% of the cash flows under the terms of the property ownership entity's joint venture agreement.	

47

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. Examples of such statements in this supplemental package include our estimated Core FFO and Core FFO per diluted share for calendar year 2017 and certain expected future financing requirements and expenditures.
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: economic, regulatory and socio-economic changes (including accounting standards) that impact the real estate market generally or that could affect the patterns of use of commercial office space; the success of our real estate strategies and investment objectives, including our ability to identify and consummate suitable acquisitions and divestitures; lease terminations or lease defaults, particularly by one of our large lead tenants; the impact of competition on our efforts to renew existing leases or re-let space on terms similar to existing leases; changes in the economies and other conditions affecting the office market in general and of the specific markets in which we operate, particularly in Washington, D.C., the New York metropolitan area, and Chicago where we have high concentrations of office properties; the illiquidity of real estate investments, including the resulting impediment on our ability to quickly respond to adverse changes in the performance of our properties; the risks and uncertainties associated with the acquisition of properties, many of which risks and other liabilities may not be known at the time of acquisition; development and construction delays and resultant increased costs and risks; our real estate development strategies may not be successful; future terrorist attacks in the major metropolitan areas in which we own properties; additional risks and costs associated with directly managing properties occupied by government tenants; the effect on us of adverse market and economic conditions, including any resulting impairment charges on both our long-lived assets or goodwill; availability of financing and our lending banks' ability to honor existing line of credit commitments; costs of complying with governmental laws and regulations; the effect of future offerings of debt or equity securities or changes in market interest rates on the value of our common stock; uncertainties associated with environmental and other regulatory matters; potential changes in political environment and reduction in federal and/or state funding of our governmental tenants; any change in the financial condition of any of our large lead tenants; the effect of any litigation to which we are, or may become, subject; changes in tax laws impacting REITs and real estate in general, as well as our ability to continue to qualify as a REIT under the Internal Revenue Code; and other factors detailed in our most recent Annual Report on Form 10-K and other documents we file with the Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this supplemental report. We cannot guarantee the accuracy of any such forward-looking statements contained in this supplemental report, and we do not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

48