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

Date of Report (Date of earliest event reported)	 	              November 3, 2011	
Piedmont Office Realty Trust, Inc.
 
(Exact Name of Registrant as Specified in Charter)

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

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

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

Item 2.02 Results of Operations and Financial Condition
On November 3, 2011, Piedmont Office Realty Trust, Inc. (the “Registrant”) issued a press release announcing its financial results for the third quarter 2011, and published supplemental information for the third quarter 2011 to its website. The press release and the supplemental information are attached hereto as Exhibit 99.1 and 99.2, respectively, and are incorporated herein by reference. Pursuant to the rules and regulations of the Securities and Exchange Commission, such exhibits and the information set forth therein are deemed to have been furnished and shall not be deemed to be “filed” under the Securities Exchange Act of 1934.
Item 8.01 Other Events
On November 2, 2011, the Board of Directors of the Registrant authorized the repurchase of up to $300 million of the Registrant’s Common Stock over the next two years. The Registrant may repurchase the shares from time to time, in accordance with applicable securities laws, in the open market or in privately negotiated transactions. Repurchases will depend upon market conditions and other factors, and repurchases may be commenced or suspended from time to time in the Registrant’s discretion, without prior notice.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits:

Exhibit No.	    	Description                                                                                  	
99.1	    	Press release dated November 3, 2011.	
99.2	    	Piedmont Office Realty Trust, Inc. Quarterly Supplemental Information for the Third Quarter 2011.	
 
2

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

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

EXHIBIT INDEX

Exhibit No.	    	Description                                                                                  	
99.1	    	Press release dated November 3, 2011.	
99.2	    	Piedmont Office Realty Trust, Inc. Quarterly Supplemental Information for the Third Quarter 2011.	
 
4

Exhibit 99.1

Piedmont Office Realty Trust Reports Third Quarter Results and Announces
Stock Repurchase Program
ATLANTA, November 3, 2011 — Piedmont Office Realty Trust, Inc. (“Piedmont” or the “Company”) (NYSE:PDM), an owner of primarily Class A properties located predominantly in the ten largest U.S. office markets, today announced its results for the quarter ended September 30, 2011 and the authorization of a stock repurchase program of up to $300 million of the Company’s Common Stock.
Highlights for the Three Months Ended September 30, 2011:
 
 	•	 	Achieved Funds From Operations (“FFO”) of $0.40 per diluted share;	
 
 	•	 	Completed over 900,000 square feet of leasing at the Company’s 79 consolidated office properties, including 566,000 square feet of renewal leases and 342,000 square feet of new leases bringing the Company’s year to date annual leasing to approximately 3 million square feet;	
 
 	•	 	Acquired a 440,000 square foot, Class-A office complex, located at 225 and 235 Presidential Way in the Boston submarket of Woburn, MA;	
 
 	•	 	Disposed of three non-core assets resulting in gains of approximately $26.8 million;	
 
 	•	 	Announced the pending sale of our ownership interest in the 35 W. Wacker building in downtown Chicago.	
Donald A. Miller, CFA, President and Chief Executive Officer stated, “On the leasing front, we remain encouraged by the volume of leasing that Piedmont has completed in the first nine months of the year, which is very close to surpassing our previous record of 3.1 million square feet of leasing in any annual period. From a transactional perspective, we continue to advance our strategy of narrowing our property location footprint. We believe the combination of our existing portfolio of high-quality, well-located, well-leased buildings, together with our recent value-add acquisitions, makes us well-positioned to drive both earnings growth and enterprise appreciation over time. Also, the continued volatility in today’s equity markets combined with a low cap rate environment currently makes an investment in our own real estate a financially appealing proposition. Because of this we are announcing a stock buy-back program that we believe will be accretive to our stockholders over time.”
Results for the Third Quarter ended September 30, 2011:
Piedmont’s net income available to common stockholders for the third quarter of 2011, which includes approximately $0.16 per diluted share of gains on sales of three assets, was $51.0 million, or $0.29 per diluted share, as compared with $40.6 million, or $0.23 per diluted share, for the third quarter 2010. FFO totaled $68.9 million, or $0.40 per diluted share, for the current quarter as compared with $77.9 million, or $0.45 per diluted share, for the quarter ended

September 30, 2010. Excluding $0.3 million of transaction costs associated with the Company’s acquisition in the quarter, Core FFO totaled $69.2 million, or $0.40 per diluted share, for the current quarter, as compared to $78.2 million, or $0.45 per diluted share, for the quarter ended September 30, 2010. Total operating revenues for the quarter ended September 30, 2011 totaled $134.4 million, materially consistent with the same period a year ago; however, revenues for the quarter ended September 30, 2010 included approximately $4.2 million of lease termination revenue which did not recur in the current quarter. This reduction in lease termination revenue was offset by increased rental revenues and reimbursements from properties acquired during the last twelve months.
Property operating expenses were $51.1 million in the third quarter of 2011 compared to $44.4 million in the third quarter of 2010, reflecting added operating costs from the acquisition of eight additional properties since October 1, 2010, including several newly constructed, lower-occupancy properties. Same store net operating income (on a cash basis) for the quarter was $81.5 million compared to $88.1 million for the quarter ended September 30, 2010 reflecting the one-time benefit of reduced property tax assessments in the prior year results, the effects of current year rent roll downs, and a 1% decline in occupancy.
Adjusted FFO (“AFFO”) for the third quarter of 2011 totaled $50.0 million, or $0.29 per diluted share, as compared to $66.8 million, or $0.39 per diluted share, in the third quarter of 2010, reflecting increased capital expenditures associated with recent leasing activity.
Leasing Update
During the third quarter of 2011, the Company executed approximately 907,000 square feet of office leasing throughout its markets bringing Piedmont’s year to date total square footage leased to approximately 3 million. Of the leases signed during the quarter, 566,000 square feet, or 62%, was renewal-related and 342,000 square feet, or 38%, was with new tenants. Year to date leasing activity will increase rental rates by 4.2% on an accrual basis and will decrease rental rates by 0.6% on a cash basis upon commencement. The Company’s overall office portfolio was 86.4% leased as of September 30, 2011, with a weighted average lease term remaining of 6.6 years. The Company’s overall leased percentage decreased 2.6% from September 30, 2010, primarily as the result of several value-add acquisitions over the past twelve months. The stabilized portfolio was 88.8% leased as of September 30, 2011 as compared to 89.7% leased as of September 30, 2010. The Company continues to actively manage its upcoming lease expirations and a detail outlining Piedmont’s current leasing activity can be found in the Company’s quarterly supplemental information package.
Capital Markets and Financing Activities
As previously announced, during the third quarter Piedmont purchased a 440,130 square foot, Class-A office complex, located at 225 and 235 Presidential Way in the Boston submarket of Woburn, MA. The complex is comprised of two, five-story buildings and two, three-story parking structures, constructed in 2000 and 2001. Together, the buildings are 100% leased to investment grade-rated Raytheon Company (NYSE:RTN) through 2019. Subsequent to quarter

end, the Company also entered into a contract to purchase 400 TownPark, a 175,674 square foot, five-story office building in Lake Mary, FL for $23.9 million.
As part of the process of recycling capital out of non-core assets, Piedmont completed the sale of another joint venture property, 47300 Kato Road in Fremont, CA, as well as wholly-owned properties Eastpointe Corporate Center in suburban Seattle, WA, and 5000 Corporate Court in Holtsville, NY, during the quarter ended September 30, 2011. The Company continues to work with the buyer of its 96.5% ownership interest in 35 West Wacker Drive, an office building located in Chicago, IL and management anticipates the closing of the sale to occur by year end, pending final lender approval of the buyer’s assumption of the related debt.
Piedmont’s gross assets amounted to $5.6 billion as of September 30, 2011. Total debt, including notes payable held for sale, was approximately $1.7 billion as of September 30, 2011, materially consistent with June 30, 2011. The Company’s total debt-to-gross assets ratio was 29.9% as of September 30, 2011 as compared with 26.6% as of December 31, 2010, reflecting the assumption of $185.0 million of debt in conjunction with the acquisition of the 500 W. Monroe building during the first quarter of 2011. Net debt to annualized core EBITDA ratio was 4.6 times and the Company`s fixed charge coverage ratio was 4.9 times. As of September 30, 2011, Piedmont had cash and capacity on its unsecured line of credit of approximately $163 million.
Subsequent to Quarter End
Dividend
On November 2, 2011, the Board of Directors of Piedmont declared dividends for the fourth quarter of 2011 in the amount of $0.315 per common share outstanding to stockholders of record as of the close of business on December 1, 2011. Such dividends are to be paid on December 22, 2011.
Stock Repurchase Program
On November 2, 2011, the Board of Directors of Piedmont authorized the repurchase of up to $300 million of the Company’s Common Stock over the next two years. The Company may repurchase the shares from time to time, in accordance with applicable securities laws, in the open market or in privately negotiated transactions. Repurchases will depend upon market conditions and other factors, and repurchases may be commenced or suspended from time to time in the Company’s discretion, without prior notice.
Guidance for 2011

Based on management’s expectations, the Company has adjusted financial guidance to the upper end of previously published estimates for full-year 2011 as follows:

 	  	Low	 	  	 	 	  	High	 	  	 	 	
 	 	 	 	 	
Core FFO	  	$	264	  	  	 	—  	  	  	$	269	  	  	 	Million	  	
 	 	 	 	 	
Core FFO per diluted share	  	$	1.53	  	  	 	—  	  	  	$	1.56	  	  	 	 	 	
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 repairs and maintenance, capital expenditures, capital markets activities and one-time revenue or expense events. In addition, the Company’s guidance is based on information available to management as of the date of this release.
Non-GAAP Financial Measures
This release contains certain supplemental non-GAAP financial measures such as FFO, AFFO, Core FFO, Same store net operating income, and Core EBITDA. See below for definitions and reconciliations of these metrics to their most comparable GAAP metric.
Conference Call Information
Piedmont has scheduled a conference call and an audio webcast for Friday, November 4, 2011 at 10:00 A.M. Eastern Time. The live audio webcast of the call may be accessed on the Company’s website at www.piedmontreit.com in the Investor Relations section. Dial-in numbers are 1-877-407-3982 for participants in the United States and 1-201-493-6780 for international participants. The conference identification number is 380070. A replay of the conference call will be available until November 18, 2011, and can be accessed by dialing 1-877-870-5176 or 1-858-384-5517 for international participants, followed by pass code 380070. A webcast replay will also be available after the conference call in the Investor Relations section of the Company’s website. During the audio webcast and conference call, the Company’s management team will review third quarter 2011 performance, discuss recent events, and conduct a question-and-answer period.
Supplemental Information
Quarterly Supplemental Information as of and for the period ended September 30, 2011 can be accessed on the Company`s website under the Investor Relations section at www.piedmontreit.com.
About Piedmont Office Realty Trust
Piedmont Office Realty Trust, Inc. (NYSE:PDM) is a fully-integrated and self-managed real estate investment trust (REIT) specializing in high-quality, Class A office properties located primarily in

the ten largest U.S. office markets, including Chicago, Washington, D.C., New York, Dallas, Los Angeles and Boston. As of September 30, 2011, Piedmont’s 79 wholly-owned office buildings were comprised of approximately 22 million rentable square feet and were 86.4% leased. The Company is headquartered in Atlanta, GA with local management offices in each of its major markets. Investment-grade rated by Standard & Poor’s and Moody’s, Piedmont has maintained a low-leverage strategy while acquiring over $5.9 billion in properties since 1998. For more information, see http://www.piedmontreit.com.
Forward Looking Statements
Certain statements contained in this press release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company intends for all such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, as applicable. Such information is subject to certain risks and uncertainties, as well as known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of the Company’s performance in future periods. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “continue” or similar words or phrases that are predictions of future events or trends and which do not relate solely to historical matters. Examples of such statements in this press release include the Company’s leasing and transaction momentum and prospects; the ability of the Company’s portfolio to drive both earnings growth and asset appreciation over time; the results of and accretiveness of the Company’s stock repurchase program; the Company’s ability to consummate pending acquisitions and dispositions and the Company’s estimated range of Core FFO and Core FFO per diluted share for the year ending December 31, 2011.
The following are some of the factors that could cause the Company’s actual results and its expectations to differ materially from those described in the Company’s forward-looking statements: the Company’s ability to successfully identify and consummate suitable acquisitions; current adverse market and economic conditions; lease terminations or lease defaults, particularly by one of the Company’s large lead tenants; the impact of competition on the Company’s efforts to renew existing leases or re-let space; changes in the economies and other conditions of the office market in general and of the specific markets in which the Company operates; economic and regulatory changes; additional risks and costs associated with directly managing properties occupied by government tenants; adverse market and economic conditions and related impairments to the Company’s assets, including, but not limited to, receivables, real estate assets and other intangible assets; the success of the Company’s real estate strategies and investment objectives; availability of financing; costs of complying with governmental laws and regulations; uncertainties associated with environmental and other regulatory matters; the Company’s ability to continue to qualify as a REIT under the Internal Revenue Code; the impact of outstanding or potential litigation; and other factors detailed in the Company’s most recent Annual Report on Form 10-K for the period

ended December 31, 2010, and other documents the Company files with the Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company cannot guarantee the accuracy of any such forward-looking statements contained in this press release, and the Company does not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Research Analysts/ Institutional Investors Contact:
Eddie Guilbert
770-418-8592
research.analysts@piedmontreit.com
Shareholder Services/Transfer Agent Services Contact:
The Bank of New York Mellon
866-354-3485
Investor.services@piedmontreit.com

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

 
 	 	 	 	 	 	 	 	 	
 	  	September 30, 2011	 	 	December 31, 2010	 	
 	  	 	(Unaudited)	  	 	 	 	 	
Assets:	  	 	 	 	 	 	 	 	
Real estate assets, at cost:	  	 	 	 	 	 	 	 	
Land	  	$	637,656	  	 	$	592,080	  	
Buildings and improvements	  	 	3,721,349	  	 	 	3,486,966	  	
Buildings and improvements, accumulated depreciation	  	 	(766,163	) 	 	 	(707,314	) 	
Intangible lease asset	  	 	206,621	  	 	 	193,420	  	
Intangible lease asset, accumulated amortization	  	 	(118,574	) 	 	 	(125,193	) 	
Construction in progress	  	 	16,853	  	 	 	8,591	  	
Real estate assets held for sale	  	 	293,375	  	 	 	286,269	  	
Real estate assets held for sale, accumulated depreciation and amortization	  	 	(64,479	) 	 	 	(57,991	) 	
 	  	 	 	 	 	 	 	 	
Total real estate assets	  	 	3,926,638	  	 	 	3,676,828	  	
Investment in unconsolidated joint ventures	  	 	38,391	  	 	 	42,018	  	
Cash and cash equivalents	  	 	16,128	  	 	 	56,718	  	
Tenant receivables, net of allowance for doubtful accounts	  	 	32,066	  	 	 	28,849	  	
Straight line rent receivable	  	 	99,028	  	 	 	94,420	  	
Notes receivable	  	 	-  	  	 	 	61,144	  	
Due from unconsolidated joint ventures	  	 	643	  	 	 	1,158	  	
Restricted cash and escrows	  	 	36,300	  	 	 	814	  	
Prepaid expenses and other assets	  	 	13,978	  	 	 	11,249	  	
Goodwill	  	 	180,097	  	 	 	180,097	  	
Deferred financing costs, less accumulated amortization	  	 	4,739	  	 	 	5,240	  	
Deferred lease costs, less accumulated amortization	  	 	217,757	  	 	 	165,001	  	
Other assets held for sale	  	 	35,563	  	 	 	27,546	  	
Restricted cash and escrows held for sale	  	 	11,447	  	 	 	11,661	  	
Straight line rent receivable held for sale	  	 	343	  	 	 	10,737	  	
 	  	 	 	 	 	 	 	 	
Total assets	  	$	4,613,118	  	 	$	4,373,480	  	

Liabilities:	  	 	 	 	 	 	 	 	
Line of credit and notes payable	  	$	1,544,525	  	 	$	1,282,525	  	
Accounts payable, accrued expenses, and accrued capital expenditures	  	 	143,106	  	 	 	112,648	  	
Deferred income	  	 	32,514	  	 	 	35,203	  	
Intangible lease liabilities, less accumulated amortization	  	 	51,599	  	 	 	42,005	  	
Interest rate swap	  	 	-  	  	 	 	691	  	
Notes payable held for sale	  	 	120,000	  	 	 	120,000	  	
Other liabilities held for sale	  	 	4,451	  	 	 	6,954	  	
 	  	 	 	 	 	 	 	 	
Total liabilities	  	 	1,896,195	  	 	 	1,600,026	  	
 	 	 	
Stockholders’ equity :	  	 	 	 	 	 	 	 	
Common stock	  	 	1,728	  	 	 	1,727	  	
Additional paid in capital	  	 	3,663,155	  	 	 	3,661,308	  	
Cumulative distributions in excess of earnings	  	 	(952,370	) 	 	 	(895,122	) 	
Other comprehensive loss	  	 	-  	  	 	 	(691	) 	
 	  	 	 	 	 	 	 	 	
Piedmont stockholders’ equity	  	 	2,712,513	  	 	 	2,767,222	  	
Non-controlling interest	  	 	1,613	  	 	 	1,609	  	
Non-controlling interest held for sale	  	 	2,797	  	 	 	4,623	  	
 	  	 	 	 	 	 	 	 	
Total stockholders’ equity	  	 	2,716,923	  	 	 	2,773,454	  	
 	  	 	 	 	 	 	 	 	
Total liabilities, redeemable common stock and stockholders’ equity	  	$	4,613,118	  	 	$	4,373,480	  	
 	  	 	 	 	 	 	 	 	
Net Debt (Debt less cash and cash equivalents and restricted cash and escrows)	  	$	1,600,650	  	 	$	1,333,332	  	
Total Gross Assets (1)	  	$	5,562,334	  	 	$	5,263,978	  	
Number of shares of common stock outstanding at end of period	  	 	172,827	  	 	 	172,658	  	
 
(1) Total assets exclusive of accumulated depreciation and amortization related to real estate assets.

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	 	Nine Months Ended	 	
 	  	9/30/2011	 	 	9/30/2010	 	 	9/30/2011	 	 	9/30/2010	 	
Revenues:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental income	  	$	105,878	  	 	$	102,097	  	 	$	311,760	  	 	$	306,238	  	
Tenant reimbursements	  	 	28,459	  	 	 	26,983	  	 	 	86,368	  	 	 	84,100	  	
Property management fee revenue	  	 	110	  	 	 	806	  	 	 	1,303	  	 	 	2,265	  	
Other rental income	  	 	(33	) 	 	 	4,230	  	 	 	4,718	  	 	 	5,205	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	134,414	  	 	 	134,116	  	 	 	404,149	  	 	 	397,808	  	
 	 	 	 	 	
Operating expenses:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property operating costs	  	 	51,062	  	 	 	44,417	  	 	 	153,258	  	 	 	143,416	  	
Depreciation	  	 	26,375	  	 	 	24,317	  	 	 	77,748	  	 	 	72,264	  	
Amortization	  	 	14,907	  	 	 	9,302	  	 	 	39,411	  	 	 	28,215	  	
General and administrative	  	 	4,673	  	 	 	6,595	  	 	 	18,631	  	 	 	20,790	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses	  	 	97,017	  	 	 	84,631	  	 	 	289,048	  	 	 	264,685	  	

Real estate operating income	  	 	37,397	  	 	 	49,485	  	 	 	115,101	  	 	 	133,123	  	
 	 	 	 	 	
Other income (expense):	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest expense	  	 	(16,236	) 	 	 	(15,777	) 	 	 	(49,638	) 	 	 	(50,687	) 	
Interest and other income	  	 	(91	) 	 	 	993	  	 	 	3,130	  	 	 	2,996	  	
Equity in income of unconsolidated joint ventures	  	 	485	  	 	 	619	  	 	 	1,032	  	 	 	2,003	  	
Gain (loss) on consolidation of a variable interest entity	  	 	-  	  	 	 	-  	  	 	 	1,532	  	 	 	-  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total other income (expense)	  	 	(15,842	) 	 	 	(14,165	) 	 	 	(43,944	) 	 	 	(45,688	) 	

Income from continuing operations	  	 	21,555	  	 	 	35,320	  	 	 	71,157	  	 	 	87,435	  	
 	 	 	 	 	
Discontinued operations:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

Operating income	  	 	2,719	  	 	 	5,268	  	 	 	8,119	  	 	 	13,843	  	
Impairment loss	  	 	-  	  	 	 	-  	  	 	 	-  	  	 	 	(9,587	) 	
Gain on sale of real estate assets	  	 	26,756	  	 	 	-  	  	 	 	26,756	  	 	 	-  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from discontinued operations	  	 	29,475	  	 	 	5,268	  	 	 	34,875	  	 	 	4,256	  	

Net income	  	 	51,030	  	 	 	40,588	  	 	 	106,032	  	 	 	91,691	  	
 	 	 	 	 	
Less: Net income attributable to noncontrolling interest	  	 	(4	) 	 	 	(4	) 	 	 	(12	) 	 	 	(12	) 	

Net income attributable to Piedmont	  	$	51,026	  	 	$	40,584	  	 	$	106,020	  	 	$	91,679	  	

Weighted average common shares outstanding - diluted	  	 	173,045	  	 	 	172,885	  	 	 	172,996	  	 	 	170,257	  	
 	 	 	 	 	
Per Share Information - diluted:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from continuing operations	  	$	0.12	  	 	$	0.20	  	 	$	0.41	  	 	$	0.51	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from discontinued operations	  	$	0.17	  	 	$	0.03	  	 	$	0.20	  	 	$	0.03	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income available to common stockholders	  	$	0.29	  	 	$	0.23	  	 	$	0.61	  	 	$	0.54	  	

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	 	 	Nine Months Ended	 	
 	  	9/30/2011	 	 	9/30/2010	 	 	9/30/2011	 	 	9/30/2010	 	
Net income attributable to Piedmont	  	$	51,026	  	 	$	40,584	  	 	$	106,020	  	 	$	91,679	  	
 	 	 	 	 	
Depreciation (1) (2)	  	 	28,102	  	 	 	26,163	  	 	 	83,135	  	 	 	78,285	  	
Amortization (1)	  	 	16,616	  	 	 	11,119	  	 	 	44,601	  	 	 	33,712	  	
(Gain) loss on sale of properties (1)	  	 	(26,826	) 	 	 	-	  	 	 	(26,872	) 	 	 	-	  	
(Gain) loss on consolidation of variable interest entity	  	 	-	  	 	 	-	  	 	 	(1,532	) 	 	 	-	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Funds from operations	  	 	68,918	  	 	 	77,866	  	 	 	205,352	  	 	 	203,676	  	
Acquisition costs	  	 	285	  	 	 	310	  	 	 	975	  	 	 	358	  	
 	 	 	 	 	
Impairment loss on real estate assets (1)	  	 	-	  	 	 	53	  	 	 	-	  	 	 	9,640	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core funds from operations	  	 	69,203	  	 	 	78,229	  	 	 	206,327	  	 	 	213,674	  	
 	 	 	 	 	
Depreciation of non real estate assets	  	 	84	  	 	 	176	  	 	 	422	  	 	 	533	  	
Stock-based and other non-cash compensation expense	  	 	1,111	  	 	 	1,095	  	 	 	2,975	  	 	 	2,458	  	
Deferred financing cost amortization	  	 	879	  	 	 	607	  	 	 	2,546	  	 	 	2,000	  	
Amortization of fair market adjustments on notes payable	  	 	471	  	 	 	-	  	 	 	1,413	  	 	 	-	  	
Straight-line effects of lease revenue (1)	  	 	(4,129	) 	 	 	(2,921	) 	 	 	(4,488	) 	 	 	(2,632	) 	
Amortization of lease-related intangibles (1)	  	 	(1,817	) 	 	 	(1,510	) 	 	 	(4,850	) 	 	 	(4,461	) 	
Income from amortization of discount on purchase of mezzanine loans	  	 	-	  	 	 	(569	) 	 	 	(484	) 	 	 	(1,932	) 	
Acquisition costs	  	 	(285	) 	 	 	(310	) 	 	 	(975	) 	 	 	(358	) 	
Non-incremental capital expenditures(3)	  	 	(15,538	) 	 	 	(8,023	) 	 	 	(46,018	) 	 	 	(22,722	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted funds from operations	  	$	49,979	  	 	$	66,774	  	 	$	156,868	  	 	$	186,560	  	

Weighted average common shares outstanding-diluted	  	 	173,045	  	 	 	172,885	  	 	 	172,996	  	 	 	170,257	  	
 	 	 	 	 	
Funds from operations per share (diluted)	  	$	0.40	  	 	$	0.45	  	 	$	1.19	  	 	$	1.20	  	
Core funds from operations per share (diluted)	  	$	0.40	  	 	$	0.45	  	 	$	1.19	  	 	$	1.26	  	
Adjusted funds from operations per share (diluted)
 	  	$
 	0.29
 	  
 	 	$
 	0.39
 	  
 	 	$
 	0.91
 	  
 	 	$
 	1.10

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

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	 	Nine Months Ended	 	
 	  	9/30/2011	 	 	9/30/2010	 	 	9/30/2011	 	 	9/30/2010	 	
Net income attributable to Piedmont	  	$	51,026	  	 	$	40,584	  	 	$	106,020	  	 	$	91,679	  	
 	 	 	 	 	
Net income attributable to non-controlling interest	  	 	135	  	 	 	158	  	 	 	378	  	 	 	409	  	
Interest Expense	  	 	17,804	  	 	 	17,359	  	 	 	54,291	  	 	 	55,383	  	
Depreciation(1)	  	 	28,186	  	 	 	26,339	  	 	 	83,557	  	 	 	78,818	  	
Amortization(1)	  	 	16,616	  	 	 	11,119	  	 	 	44,601	  	 	 	33,712	  	
Impairment loss(1)	  	 	-  	  	 	 	53	  	 	 	-  	  	 	 	9,640	  	
(Gain) loss on sale of properties (1)	  	 	(26,826	) 	 	 	-  	  	 	 	(26,872	) 	 	 	-  	  	
(Gain) loss on consolidation of variable interest entity	  	 	-  	  	 	 	-  	  	 	 	(1,532	) 	 	 	-  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core EBITDA*	  	 	86,941	  	 	 	95,612	  	 	 	260,443	  	 	 	269,641	  	
 	 	 	 	 	
General & administrative expenses(1)	  	 	4,747	  	 	 	6,806	  	 	 	18,843	  	 	 	21,129	  	
Management fee revenue	  	 	(110	) 	 	 	(806	) 	 	 	(1,303	) 	 	 	(2,265	) 	
Interest and other income	  	 	74	  	 	 	(993	) 	 	 	(3,132	) 	 	 	(2,998	) 	
Lease termination income	  	 	33	  	 	 	(4,230	) 	 	 	(4,718	) 	 	 	(5,205	) 	
Lease termination expense - straight line rent & acquisition intangibles write-offs	  	 	260	  	 	 	131	  	 	 	739	  	 	 	876	  	
Straight line rent adjustment(1)	  	 	(4,296	) 	 	 	(3,053	) 	 	 	(4,963	) 	 	 	(3,508	) 	
Net effect of amortization of below-market in-place lease intangibles (1)	  	 	(1,911	) 	 	 	(1,510	) 	 	 	(5,115	) 	 	 	(4,461	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core net operating income (cash basis)*	  	 	85,738	  	 	 	91,957	  	 	 	260,794	  	 	 	273,209	  	
 	 	 	 	 	
Acquisitions	  	 	(3,400	) 	 	 	2	  	 	 	(6,443	) 	 	 	2	  	
Dispositions	  	 	245	  	 	 	(2,554	) 	 	 	(328	) 	 	 	(8,028	) 	
Industrial properties	  	 	(254	) 	 	 	(90	) 	 	 	(733	) 	 	 	(436	) 	
Unconsolidated joint ventures	  	 	(818	) 	 	 	(1,217	) 	 	 	(2,173	) 	 	 	(3,670	) 	

Same Store NOI*	  	$	81,511	  	 	$	88,098	  	 	$	251,118	  	 	$	261,077	  	

Change period over period in same store NOI	  	 	-7.5	% 	 	 	 	 	 	 	-3.8	% 	 	 	 	 	
 	 	 	 	 	
Fixed Charge Coverage Ratio (Core EBITDA/ Interest Expense) (2)	  	 	4.9	  	 	 	 	 	 	 	4.8	  	 	 	 	 	
Annualized Core EBITDA (Core EBITDA x 4)	  	$	347,764	  	 	 	 	 	 	$	347,257	  	 	 	 	 	
 
(1)	Includes amounts attributable to wholly-owned properties, including discontinued operations, and our proportionate share of amounts attributable to unconsolidated joint ventures.	
 
(2) 	Piedmont had no capitalized interest, principal amortization or preferred dividends for any of the periods presented.	
*Definitions
Core EBITDA: Defined as net income before interest, taxes, depreciation and amortization and incrementally removing any impairment losses, gains or losses from sales of property, or other extraordinary items. We do not include impairment losses in this measure because we feel these types of losses create volatility in our earnings and make it difficult to determine the earnings generated by our ongoing business. We believe Core EBITDA is a reasonable measure of our liquidity. Core EBITDA is a non-GAAP financial measure and should not be viewed as an alternative measurement of cash flows from operating activities or other GAAP basis liquidity measures. Other REITs may calculate Core EBITDA differently and our calculation should not be compared to that of other REITs.
Core net operating income (“Core NOI”): Core NOI is defined as real estate operating income with the add-back of corporate general and administrative expense, depreciation and amortization, and casualty and impairment losses and the deduction of income and expense associated with lease terminations and income associated with property management performed by Piedmont for other organizations. We present this measure on a cash basis, which eliminates the effects of straight lined rents and fair value lease revenue. The company uses this measure to assess its operating results and believes it is important in assessing operating performance. Core NOI is a non-GAAP measure which does not have any standard meaning prescribed by GAAP and therefore may not be comparable to similar measures presented by other companies.
Same store net operating income (“Same Store NOI”): Same Store NOI is calculated as the Core NOI attributable to the properties owned or placed in service during the entire span of the current and prior year reporting periods. Same Store NOI excludes amounts attributable to industrial properties and unconsolidated joint venture assets. We present this measure on a cash basis, which eliminates the effects of straight lined rents and fair value lease revenue. We believe Same Store NOI is an important measure of comparison of our stabilized properties’ operating performance. Other REITs may calculate Same Store NOI differently and our calculation should not be compared to that of other REITs.

Exhibit 99.2

Quarterly Supplemental Information
September 30, 2011

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

Piedmont Office Realty Trust, Inc.
Quarterly Supplemental Information
Index

 
 	 	 	
 	  	Page	
 	 	
Introduction	  	 	
Corporate Data	  	3	
Investor Information	  	4	
Financial Highlights	  	5-9	
Key Performance Indicators	  	10	
 	 	
Financials	  	 	
Balance Sheet	  	11	
Income Statements	  	12-13	
Funds From Operations / Adjusted Funds From Operations	  	14	
Same Store Analysis	  	15-16	
Capitalization Analysis	  	17	
Debt Summary	  	18	
Debt Detail	  	19	
Debt Analysis	  	20	
 	 	
Operational & Portfolio Information - Office Investments	  	 	
Tenant Diversification	  	21	
Tenant Credit Rating & Lease Distribution Information	  	22	
Leased Percentage Information	  	23	
Rental Rate Roll Up / Roll Down Analysis	  	24	
Lease Expiration Schedule	  	25	
Annual Lease Expirations	  	26	
Capital Expenditures & Commitments	  	27	
Contractual Tenant Improvements & Leasing Commissions	  	28	
Geographic Diversification	  	29	
Industry Diversification	  	30	
Property Investment Activity	  	31	
Value-Add Activity	  	32	
 	 	
Other Investments	  	 	
Other Investments Detail	  	33	
 	 	
Supporting Information	  	 	
Definitions	  	34-35	
Research Coverage	  	36	
Non-GAAP Reconciliations & Other Detail	  	37-40	
Risks, Uncertainties and Limitations	  	41	

Please refer to page 41 for a discussion of important risks related to the business of Piedmont Office Realty Trust, as well as an investment in its securities, including risks that could cause actual results and events to differ materially from results and events referred to in the forward-looking information. Considering these risks, uncertainties, assumptions, and limitations, the forward-looking events contained in this supplemental reporting package might not occur.
Certain prior period amounts have been reclassified to conform to the current period financial statement presentation. In addition, many of the schedules herein contain rounding to the nearest thousands or millions and, therefore, the schedules may not total due to this rounding convention.

Piedmont Office Realty Trust, Inc.
Corporate Data

Piedmont Office Realty Trust, Inc. (“Piedmont” or the “Company”) (NYSE: PDM) is a fully-integrated and self-managed real estate investment trust (“REIT”) specializing in the acquisition, ownership, management, development and disposition of primarily high-quality Class A office buildings located predominantly in large U.S. office markets and leased principally to high-credit-quality tenants. Since its first acquisition in 1998, the Company has acquired $5.9 billion of office and industrial properties (inclusive of joint ventures) through September 30, 2011. Rated as an investment-grade company by Standard & Poor’s and Moody’s, Piedmont has maintained a low-leverage strategy while acquiring its properties. Approximately 84% of our Annualized Lease Revenue (“ALR”) (1)  is derived from our office properties located within the ten largest U.S. office markets, including Chicago, Washington, D.C., the New York metropolitan area, Boston and greater Los Angeles.
This data supplements the information provided in our reports filed with the Securities and Exchange Commission and should be reviewed in conjunction with such filings.

 	  	As of
    September 30, 2011    	 	  	 	  	As of
    December 31, 2010    	 	
 	 	 	 	
Number of properties (2)	  	 	79	  	  	 	  	 	75	  	
 	 	 	 	
Rentable square footage (in thousands) (2)	  	 	21,839	  	  	 	  	 	20,408	  	
 	 	 	 	
Percent leased (3)	  	 	86.4%	  	  	 	  	 	89.2%	  	
 	 	 	 	
Percent leased (not including value-add properties) (4)	  	 	88.8%	  	  	 	  	 	89.9%	  	
 	 	 	 	
Capitalization (in thousands):	  	 	 	 	  	 	  	 	 	 	
 	 	 	 	
Total gross debt - principal amount outstanding (5)	  	 	$1,664,525	  	  	 	  	 	$1,402,525	  	
 	 	 	 	
Equity market capitalization	  	 	$2,794,612	  	  	 	  	 	$3,477,342	  	
 	 	 	 	
Total market capitalization (5)	  	 	$4,459,137	  	  	 	  	 	$4,879,867	  	
 	 	 	 	
Total gross debt / Total market capitalization (5)	  	 	37.3%	  	  	 	  	 	28.7%	  	
 	 	 	 	
Total gross debt / Total gross assets (5)	  	 	29.9%	  	  	 	  	 	26.6%	  	
 	 	 	 	
Common stock data	  	 	 	 	  	 	  	 	 	 	
 	 	 	 	
High closing price during quarter	  	 	$21.25	  	  	 	  	 	$20.31	  	
 	 	 	 	
Low closing price during quarter	  	 	$16.08	  	  	 	  	 	$18.25	  	
 	 	 	 	
Closing price of common stock at period end	  	 	$16.17	  	  	 	  	 	$20.14	  	
 	 	 	 	
Weighted average fully diluted shares outstanding (in thousands) (6)	  	 	172,996	  	  	 	  	 	170,967	  	
 	 	 	 	
Shares of common stock issued and outstanding (in thousands)	  	 	172,827	  	  	 	  	 	172,658	  	
 	 	 	 	
Rating / outlook	  	 	 	 	  	 	  	 	 	 	
Standard & Poor’s	  	 	BBB / Stable	  	  	 	  	 	BBB / Stable	  	
Moody’s	  	 	Baa2 / Stable	  	  	 	  	 	Baa2 / Stable	  	
 	 	 	 	
Employees (7)	  	 	115	  	  	 	  	 	110	  	

 
(1) 	The definition for Annualized Lease Revenue can be found on page 34.	
(2) 	As of September 30, 2011, our office portfolio consisted of 79 properties (exclusive of our equity interests in five properties owned through unconsolidated joint ventures and our two industrial properties). During the second quarter of 2011, we sold Eastpointe Corporate Center, a 156,000 square foot building located in Issaquah, WA, and 5000 Corporate Court, a 264,000 square foot building located in Holtsville, NY, and we purchased 225 and 235 Presidential Way, two buildings comprised of 440,000 square feet and located in Woburn, MA.	
(3) 	Calculated as leased square footage on September 30, 2011 plus square footage associated with executed new leases for currently vacant spaces divided by total rentable square footage, expressed as a percentage. This measure is presented for our 79 office properties and excludes industrial and unconsolidated joint venture properties. Please refer to page 23 for additional analyses regarding Piedmont’s leased percentage.	
(4) 	Please refer to page 32 for information regarding value-add properties.	
(5) 	Total gross debt includes $120 million of debt associated with one held-for-sale asset, 35 West Wacker Drive.	
(6) 	Weighted average fully diluted shares outstanding are presented on a year-to-date basis for each period.	
(7) 	During 2011, the company hired a regional manager and additional staff for its New York, NY office. The opening of this office is the primary reason for the increase in number of employees.	
 
3

Piedmont Office Realty Trust, Inc.
Investor Information

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

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

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

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

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

 
 	
On January 22, 2010, we filed an amendment to our charter to effect a recapitalization of our common stock as described further in our Securities and Exchange Commission (“SEC”) filings. The recapitalization had the effect of a one-for-three reverse stock split. All prior period per share data has been restated to give net effect to this one-for-three reverse stock split.	
 	
Financial Results (1)                    	
-  Funds from operations (FFO) for the quarter ended September 30, 2011 was $68.9 million, or $0.40 per share (diluted), compared to $77.9 million, or $0.45 per share (diluted), for the same quarter in 2010. FFO for the nine months ended September 30, 2011 was $205.4 million, or $1.19 per share (diluted), compared to $203.7 million, or $1.20 per share (diluted), for the same period in 2010. The decrease in FFO for the three months ended September 30, 2011 as compared to the same period in 2010 was principally related to one-time net property tax credits of approximately $3 million recognized in the third quarter of 2010, lower termination income in the third quarter of 2011, and reduced rental income due to a decrease in leased percentage and rental rate roll downs; these items were partially offset by operating income contributed from properties acquired during the past year. A contributor to the decrease in per share amount for FFO for the nine months ended September 30, 2011 as compared to the same period in 2010 was the dilutive effect of the 13.8 million shares of common stock issued when the Company listed on the NYSE in February 2010.
 
-  Core funds from operations (Core FFO) for the quarter ended September 30, 2011 was $69.2 million, or $0.40 per share (diluted), compared to $78.2 million, or $0.45 per share (diluted), for the same quarter in 2010. Core FFO for the nine months ended September 30, 2011 was $206.3 million, or $1.19 per share (diluted), compared to $213.7 million, or $1.26 per share (diluted), for the same period in 2010. The decrease in Core FFO for the three and the nine months ended September 30, 2011 was principally related to one-time net property tax credits of approximately $3 million recognized in the third quarter of 2010 and reduced rental income due to a decrease in leased percentage and rental rate roll downs; these items were partially offset by operating income contributed from properties acquired during the past year.
 
-  Adjusted funds from operations (AFFO) for the quarter ended September 30, 2011 was $50.0 million, or $0.29 per share (diluted), compared to $66.8 million, or $0.39 per share (diluted), for the same quarter in 2010. AFFO for the nine months ended September 30, 2011 was $156.9 million, or $0.91 per share (diluted), compared to $186.6 million, or $1.10 per share (diluted), for the same period in 2010. The decrease in AFFO for the nine months ended September 30, 2011 as compared to the same period in 2010 was primarily due to increased capital expenditures in 2011 associated with increased leasing activity.
 
-  During the quarter ended September 30, 2011, the Company paid to shareholders a quarterly dividend in the amount of $0.315 per share for its common stock. The Company’s dividend payout percentage for the nine months ended September 30, 2011 was 79% of Core FFO and 104% of AFFO.	
 	
Operations                                     	
-  On a same store square footage leased basis, our portfolio was 87.8% leased as of September 30, 2011 as compared to 88.8% leased as of September 30, 2010. On a square footage basis, our total office portfolio was 86.4% leased as of September 30, 2011, as compared to 89.2% as of December 31, 2010 and 89.0% as of September 30, 2010. The decrease in the office portfolio leased percentage during the last several quarters is primarily related to the addition to the portfolio of several properties with significant vacancies, including 500 West Monroe Street in Chicago, IL, 1200 Enclave Parkway in Houston, TX, The Medici in Atlanta, GA, and Suwanee Gateway One in Suwanee, GA. Removing these value-add properties from the total portfolio statistics results in an 88.8% leased rate for our stabilized assets at September 30, 2011 as compared to an 89.7% leased rate at September 30, 2010. A primary contributor to the decrease in stabilized leased percentage over the previous year is the expiration of a 300,000 square foot lease at Windy Point II in Schaumburg, IL; approximately 16% of the space vacated by the tenant had been released as of the end of the third quarter of 2011. Please refer to page 23 for additional information.
 
-  The weighted average remaining lease term of our portfolio was 6.6 years(2) as of September 30, 2011 as compared to 5.8 years at December 31, 2010.
 
-  During the three months ended September 30, 2011, the Company completed 907,000 square feet of leasing at our 79 consolidated office properties. We executed renewal leases for 566,000 square feet and new tenant leases for 342,000 square feet, bringing the year-to-date total office leasing activity to 2,930,000 square feet, with an average committed capital cost of $5.13 per square foot per year of lease term. Average committed capital cost per square foot per year of lease term for renewal leases signed during the nine months ended September 30, 2011 was $4.49 and average committed capital cost per square foot per year of lease term for new leases during the same time period was $6.12. We did not execute any new leases during the quarter for our two industrial properties.
 
-  During the three months ended September 30, 2011, we retained(3) tenants for 58% of the square footage associated with expiring leases. During the nine months ended September 30, 2011, we retained tenants for 70% of the square footage associated with expiring leases. This result compares to a 72% retention rate for the year ended December 31, 2010.	

(1) FFO, Core FFO and AFFO are supplemental non-GAAP financial measures. See pages 34-35 for definitions of non-GAAP financial measures. See pages 14 and 37 for reconciliations of FFO, Core FFO and AFFO to Net Income.
(2) Remaining lease term (after taking into account leases for vacant spaces which had been executed but not commenced as of September 30, 2011) is weighted based on Annualized Lease Revenue, as defined on page 34.
(3) Piedmont defines a retained tenant to include an existing tenant/occupant signing a lease for the premises it currently occupies or a tenant whose occupancy of a space is structured in a way to eliminate downtime for the space. Excluding the Zurich American Insurance Company lease expiration at Windy Point II in Schaumburg, IL, our retention rate for the three months ended September 30, 2011, would have been 74% and that for the nine months ended September 30, 2011, would have been 76%.	
 
5

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

 
 	-	During the three months ended September 30, 2011, we executed ten office leases greater than 20,000 square feet. Please see information on those leases listed below.	

 Tenant Name	 	Property	 	Property Location	 	Square Feet
Leased	 	  	 	Expiration Year	 	Lease Type  	
 Gemini Technology Services
 (Deutsche Bank AG)	 	2 Gatehall Drive	 	Parsippany, NJ	 	204,515	 	 	 	2021	 	Renewal  	
 
 Daniel J. Edelman	 	Aon Center	 	Chicago, IL	 	178,437	 	 	 	2024	 	Renewal / Expansion  	
 
 Integrys Business Support, LLC	 	Aon Center	 	Chicago, IL	 	149,432	 	 	 	2029	 	New  	
 Dassault Systemes Americas
 Corporation	 	Auburn Hills Corporate Center	 	Auburn Hills, MI	 	49,606	 	 	 	2023	 	Renewal  	
 
 Ally Financial, Inc.	 	Auburn Hills Corporate Center	 	Auburn Hills, MI	 	42,953	 	 	 	2017	 	Renewal  	
 Continental Casualty Company	 	Glenridge Highlands II	 	Atlanta, GA	 	38,333	 	 	 	2019	 	New  	
 Harding Loevner, LP	 	400 Bridgewater Crossing	 	Bridgewater, NJ	 	30,501	 	 	 	2019	 	New  	
 W.W. Grainger, Inc.	 	3750 Brookside Parkway	 	Alpharetta, GA	 	29,246	 	 	 	2015	 	Renewal / Contraction  	
 International Business  Machines
 Corporation	 	11107 Sunset Hills Road	 	Reston, VA	 	22,639	 	 	 	2017	 	Renewal  	
 Morgan Stanley Smith Barney
 Financing, LLC	 	1901 Main Street	 	Irvine, CA	 	22,470	 	 	 	2017	 	Renewal  	
 
6

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

 
Leasing Update                                        
 
 	-	As of June 30, 2011, a total of six leases were scheduled to expire during the remainder of 2011 or during 2012 that each contributed greater than 1% to our total Annualized Lease Revenue. The 300,000 square foot lease to Zurich American Insurance Company at Windy Point II expired during the third quarter of 2011; approximately 16% of the space previously leased by Zurich has been leased by former sublessees, while the balance of the space has gone vacant. Information regarding the leasing status of the spaces associated with the remaining five leases is presented below.	

Tenant Name	  	Property	 	Property Location	 	Square
Footage  (1)	 	Percentage of Current
Quarter Annualized Lease
Revenue (%)	 	Expiration (2)	 	Current Leasing Status	
Kirkland & Ellis	  	Aon Center	 	Chicago, IL	 	331,887	 	1.7%	 	Q4 2011	 	Kirkland & Ellis is vacating. KPMG has leased 69% of the space currently leased to Kirkland & Ellis; the KPMG lease is scheduled to commence in August 2012. An additional lease is under negotiation for approximately 16% of the space currently leased by Kirkland & Ellis; after the execution of that lease, only approximately 15% of the space currently leased by Kirkland & Ellis would be available for lease.	
Marsh USA	  	500 West Monroe
Street	 	Chicago, IL	 	173,290	 	1.2%	 	Q4 2011	 	Piedmont acquired the property in March 2011 after Marsh had announced that they would vacate the building at the end of their lease term. Please see the GE discussion below. Approximately 53,000 square feet of Marsh’s current space is under negotiation to be leased by GE. The Company is actively marketing for lease the balance of the space.	
Sanofi-aventis US	  	200 Bridgewater
Crossing	 	Bridgewater, NJ	 	297,379	 	2.0%	 	Q1 2012	 	The tenant will be vacating at lease expiration. The Company has signed a lease with a new tenant for approximately 79,000 square feet. The Company is actively marketing for lease the balance of the space.	
United States of
America (National Park
Service)	  	1201 Eye Street	 	Washington, D.C.	 	219,750	 	1.7%	 	Q3 2012	 	Preliminary discussions with the GSA have commenced. The Company is awaiting the release of an official solicitation for offers from the GSA, a key component of the Government’s space acquisition process.	
GE	  	500 West Monroe
Street	 	Chicago, IL	 	311,387	 	1.7%	 	Q4 2012	 	A lease renewal and expansion with the tenant is under negotiation.	

(1) Square footage represents the total square footage leased by the tenant expiring during the expiration quarter.
(2) The lease expiration date presented is that of the majority of the space leased to the tenant at the building.
 
7

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

 
Financing and Capital Activity            
 	
-  As of September 30, 2011, our ratio of gross debt to total gross assets was 29.9%, our ratio of gross debt to gross real estate assets was 34.1%, and our ratio of gross debt to total market capitalization was 37.3%. These debt ratios are based on total principal amount outstanding for our various loans, including $120 million associated with one held-for-sale asset, 35 West Wacker Drive.
 
-  On September 13, 2011, Piedmont completed the purchase of 225 and 235 Presidential Way, a project consisting of two, five-story office buildings with a total of 440,000 square feet located in Woburn, MA, a suburb of Boston. The purchase price of the project was $85.3 million, or $194 per square foot. The buildings are well located along Interstate 93 within close proximity to the Route 128 / Interstate 95 intersection and were constructed in 2000 and 2001. The buildings are 100% leased to Raytheon Company, which has an S&P credit rating of A-, through 2019.
 
-  On July 1, 2011, the Company completed the sale of Eastpointe Corporate Center, a 156,000 square foot, five-story building located in Issaquah, WA, a suburb of Seattle, to an owner/occupant for approximately $32 million, or $205 per square foot. Piedmont recorded a $12.2 million gain upon the sale of the property. The operating income for the disposed asset is presented in discontinued operations. The building’s leased percentage dropped from 43% to 19% on the date of the sale due to the expiration of a lease. Through the sale, Piedmont was able to mitigate the leasing risk associated with this building and further its strategic objective of focusing on select markets, while simultaneously securing an attractive sale price for the property.
 
-  On August 31, 2011, Piedmont completed the sale of 5000 Corporate Court, a 264,000 square foot office building located in Holtsville, NY. The sale price of the building was $39.3 million, or $148 per square foot. Piedmont recorded a $14.6 million gain upon the sale of the property. The building is located on Long Island and is leased principally to the United States General Services Administration. The operating income for the disposed asset is presented in discontinued operations.
 
-  On August 25, 2011, Piedmont, along with its joint venture partners, sold 47300 Kato Road, a 58,000 square foot building in Fremont, CA to an owner/occupant. The gross sale price was $3.8 million, or $65 per square foot. Piedmont’s ownership in the property was approximately 78%. Piedmont recognized a $71,000 gain on the sale of its interest in the asset.
 
-  On August 1, 2011, Piedmont entered into an agreement to sell its 96.5% ownership interest in 35 West Wacker Drive, a 1,118,000 square foot office building in Chicago, IL. The agreed upon gross sale price values the building at $401.0 million, or $359 per square foot. The buyer completed its due diligence study of the asset on September 15, 2011, and its deposit of $15 million became non-refundable. The asset was reclassified from real estate assets held-for-use to real estate assets held-for-sale as of September 15, 2011. The operating income for the asset is presented in discontinued operations. The sale of the ownership interest is contingent upon lender approvals and is anticipated to close by year end.
 
-  On August 9, 2011, the Board of Directors of Piedmont declared dividends for the third quarter of 2011 in the amount of $0.315 per common share outstanding to stockholders of record as of the close of business on September 1, 2011. The dividends were paid on September 22, 2011.
 
-  The maturity dates for three loans (the two loans totaling $185 million in face value associated with 500 West Monroe Street and the $500 million line of credit facility) were extended during the third quarter of 2011. All three loans will now mature during the third quarter of 2012. Please see page 19 for additional details.	
 
8

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

 
Subsequent Events                              

- On October 5, 2011, Piedmont entered into an agreement to purchase 400 TownPark, a 176,000 square foot, five-story office building in suburban Orlando, FL. As of that date, approximately 13% of the agreed upon purchase price of $23.9 million, or $136 per square foot, had been deposited into escrow and was non-refundable. The construction of the building was completed in 2008 with an efficient, LEED design. The building is currently 19% leased and is located within the amenity-rich, mixed-use development of TownPark, which is located adjacent to Interstate 4 in the Lake Mary suburb of Orlando. The building offers the only contiguous block of vacant space over 50,000 square feet in the market. The low cost basis and high-quality construction of the building should afford the Company a competitive advantage in securing a large corporate user as the economy recovers. The purchase of the building is anticipated to be completed during the fourth quarter of 2011.
 
- The Company has signed a new, 11-year lease for approximately 79,000 square feet with Synchronoss Technologies at 200 Bridgewater Crossing in Bridgewater, NJ. The lease is for space that is currently leased to Sanofi-aventis US. Piedmont is actively marketing for lease the remainder of the space occupied by the current tenant.
 
- On November 2, 2011, the Board of Directors of Piedmont declared dividends for the fourth quarter of 2011 in the amount of $0.315 per common share outstanding to stockholders of record as of the close of business on December 1, 2011. The dividends are expected to be paid on December 22, 2011.
 
- On November 2, 2011, the Board of Directors of Piedmont authorized the repurchase of up to $300 million of the Company’s common stock over the next two years. Any repurchases of shares of common stock will depend upon market conditions, as well as other factors, and such repurchases will be made at the discretion of the Company.	
Guidance for 2011                               

- The Company is adjusting its financial guidance for calendar year 2011 to the upper end of its previously published range as follows:	

 	  	Low        High	
Core Funds from Operations	  	$264   -  $269 million	
Core Funds from Operations per diluted share	  	$1.53  -  $1.56	
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 and an accrual basis due to the timing of repairs and maintenance, capital expenditures, capital markets activities and one-time revenue or expense events. In addition, the Company’s guidance is based on information available to management as of the date of this supplemental report.
 
9

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

This section of our supplemental report includes non-GAAP financial measures, including, but not limited to, Core Earnings Before Interest, Taxes, Depreciation, and Amortization (Core EBITDA), Funds from Operations (FFO), Core Funds from Operations (Core FFO), and Adjusted Funds from Operations (AFFO). Definitions of these non-GAAP measures are provided on pages 34-35 and reconciliations are provided on pages 37-39.

 	 	Three Months Ended	 	
 
 Selected Operating Data	 	 
      9/30/2011      	 	 	 
      6/30/2011      	 	 	 
      3/31/2011      	 	 	 
      12/31/2010      	 	 	 
      9/30/2010      	 	
 	 	 	 	 	 	
Percent leased (1)	 	 	86.4%	  	 	 	86.5%	  	 	 	87.3%	  	 	 	89.2%	  	 	 	89.0%	  	
 	 	 	 	 	 	
Rental income	 	 	$105,878	  	 	 	$104,621	  	 	 	$101,261	  	 	 	$102,137	  	 	 	$102,097	  	
 	 	 	 	 	 	
Total revenues	 	 	$134,414	  	 	 	$137,165	  	 	 	$132,569	  	 	 	$135,233	  	 	 	$134,116	  	
 	 	 	 	 	 	
Total operating expenses	 	 	$97,017	  	 	 	$100,729	  	 	 	$91,301	  	 	 	$95,874	  	 	 	$84,631	  	
 	 	 	 	 	 	
Real estate operating income	 	 	$37,397	  	 	 	$36,436	  	 	 	$41,268	  	 	 	$39,359	  	 	 	$49,485	  	
 	 	 	 	 	 	
Impairment losses (2)	 	 	$0	  	 	 	$0	  	 	 	$0	  	 	 	$0	  	 	 	$53	  	
 	 	 	 	 	 	
Core EBITDA (3)	 	 	$86,941	  	 	 	$84,729	  	 	 	$88,774	  	 	 	$85,610	  	 	 	$95,612	  	
 	 	 	 	 	 	
Core FFO (3)	 	 	$69,203	  	 	 	$65,843	  	 	 	$71,281	  	 	 	$68,178	  	 	 	$78,229	  	
 	 	 	 	 	 	
Core FFO per share - diluted	 	 	$0.40	  	 	 	$0.38	  	 	 	$0.41	  	 	 	$0.39	  	 	 	$0.45	  	
 	 	 	 	 	 	
AFFO (3)	 	 	$49,979	  	 	 	$50,578	  	 	 	$56,312	  	 	 	$41,961	  	 	 	$66,774	  	
 	 	 	 	 	 	
AFFO per share - diluted	 	 	$0.29	  	 	 	$0.29	  	 	 	$0.33	  	 	 	$0.24	  	 	 	$0.39	  	
 	 	 	 	 	 	
Gross dividends	 	 	$54,441	  	 	 	$54,440	  	 	 	$54,387	  	 	 	$54,388	  	 	 	$54,388	  	
 	 	 	 	 	 	
Dividends per share	 	 	$0.315	  	 	 	$0.315	  	 	 	$0.315	  	 	 	$0.315	  	 	 	$0.315	  	
 	 	 	 	 	 	
 Selected Balance Sheet Data	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	
Total real estate assets	 	 	$3,926,638	  	 	 	$3,899,639	  	 	 	$3,892,087	  	 	 	$3,676,828	  	 	 	$3,689,428	  	
 	 	 	 	 	 	
Total gross real estate assets	 	 	$4,875,854	  	 	 	$4,828,700	  	 	 	$4,804,988	  	 	 	$4,567,326	  	 	 	$4,573,622	  	
 	 	 	 	 	 	
Total assets	 	 	$4,613,118	  	 	 	$4,560,206	  	 	 	$4,563,272	  	 	 	$4,373,480	  	 	 	$4,389,585	  	
 	 	 	 	 	 	
Net debt (4)	 	 	$1,600,650	  	 	 	$1,583,812	  	 	 	$1,529,603	  	 	 	$1,333,332	  	 	 	$1,316,645	  	
 	 	 	 	 	 	
Total liabilities	 	 	$1,896,195	  	 	 	$1,838,983	  	 	 	$1,809,755	  	 	 	$1,600,026	  	 	 	$1,591,653	  	
 	 	 	 	 	 	
 Ratios	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	
Core EBITDA margin (5)	 	 	59.8%	  	 	 	56.1%	  	 	 	60.6%	  	 	 	56.2%	  	 	 	65.0%	  	
 	 	 	 	 	 	
Fixed charge coverage ratio (6) (7)	 	 	4.9 x	  	 	 	4.4 x	  	 	 	5.2 x	  	 	 	4.9 x	  	 	 	5.5 x	  	
 	 	 	 	 	 	
Net debt to core EBITDA (7) (8)	 	 	4.6 x	  	 	 	4.7 x	  	 	 	4.3 x	  	 	 	3.9 x	  	 	 	3.4 x	  	

(1) Please refer to page 23 for additional leased percentage information.
(2) Impairment losses include losses for both wholly-owned and our proportionate share of unconsolidated joint venture assets.
(3) Core EBITDA, Core FFO and AFFO have been adjusted to exclude impairments on real estate assets as shown on pages 37 and 38.
(4) Net debt is calculated as the total principal amount of debt outstanding minus cash and cash equivalents and escrow deposits and restricted cash. As of the first quarter of 2011, net debt includes $185 million of secured debt associated with 500 West Monroe Street which was acquired March 31, 2011. Amount includes $120 million of debt associated with one held-for-sale asset, 35 West Wacker Drive.
(5) Core EBITDA margin is calculated as Core EBITDA divided by total revenues (including revenues associated with discontinued operations).
(6) Fixed charge coverage is calculated as Core EBITDA divided by the sum of interest expense, principal amortization, capitalized interest and preferred dividends. The Company had no capitalized interest, principal amortization or preferred dividends during any of the periods presented.
(7) The change in Piedmont’s debt coverage ratios in 2011 as compared to those for the year ended December 31, 2010, is primarily attributable to $185 million of debt associated with 500 West Monroe Street and the interest expense associated therewith.
(8) Core EBITDA is annualized for the purposes of this calculation.
 
10

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

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	    September 30, 2011    	 	 	    June 30, 2011    	 	 	    March 31, 2011    	 	 	    December 31, 2010    	 	 	    September 30, 2010    	 	
 	 	 	 	 	 	
Assets:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
   Real estate, at cost:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Land assets	 	 	  $637,656 	  	 	 	  $638,390 	  	 	 	  $632,530 	  	 	 	  $592,080 	  	 	 	  $597,303 	  	
Buildings and improvements	 	 	3,721,349 	  	 	 	3,688,227 	  	 	 	3,661,697 	  	 	 	3,486,966 	  	 	 	3,486,328 	  	
Buildings and improvements, accumulated depreciation	 	 	(766,163) 	  	 	 	(752,534)	  	 	 	(731,282)	  	 	 	(707,314)	  	 	 	(702,964)	  	
Intangible lease asset	 	 	206,621 	  	 	 	198,831 	  	 	 	212,153 	  	 	 	193,420 	  	 	 	196,601 	  	
Intangible lease asset, accumulated amortization	 	 	(118,574)	  	 	 	(114,180)	  	 	 	(121,479)	  	 	 	(125,193)	  	 	 	(125,315)	  	
Construction in progress	 	 	16,853 	  	 	 	12,678 	  	 	 	10,581 	  	 	 	8,591 	  	 	 	9,380	  	
Real estate assets held for sale, gross	 	 	293,375 	  	 	 	290,574 	  	 	 	288,027 	  	 	 	286,269 	  	 	 	284,010 	  	
Real estate assets held for sale, accumulated depreciation and amortization	 	 	(64,479)	  	 	 	(62,347)	  	 	 	(60,140)	  	 	 	(57,991)	  	 	 	(55,915)	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
   Total real estate assets	 	 	3,926,638 	  	 	 	3,899,639 	  	 	 	3,892,087 	  	 	 	3,676,828 	  	 	 	3,689,428 	  	
 	 	 	 	 	 	
   Investment in unconsolidated joint ventures	 	 	38,391 	  	 	 	41,271 	  	 	 	41,759 	  	 	 	42,018 	  	 	 	42,591 	  	
   Cash and cash equivalents	 	 	16,128 	  	 	 	21,404 	  	 	 	42,151 	  	 	 	56,718 	  	 	 	67,539 	  	
   Tenant receivables, net of allowance for doubtful accounts	 	 	32,066 	  	 	 	31,143 	  	 	 	29,726 	  	 	 	28,849 	  	 	 	29,269 	  	
   Straight line rent receivable	 	 	99,028 	  	 	 	96,022 	  	 	 	92,767 	  	 	 	94,420 	  	 	 	90,499 	  	
   Notes receivable	 	 	-     	  	 	 	-     	  	 	 	-     	  	 	 	61,144 	  	 	 	60,671 	  	
   Due from unconsolidated joint ventures	 	 	643 	  	 	 	537 	  	 	 	594 	  	 	 	1,158 	  	 	 	1,085 	  	
   Escrow deposits and restricted cash	 	 	36,300 	  	 	 	24,203 	  	 	 	22,765 	  	 	 	814 	  	 	 	6,811 	  	
   Prepaid expenses and other assets	 	 	13,978 	  	 	 	14,577 	  	 	 	11,967 	  	 	 	11,249 	  	 	 	18,461 	  	
   Goodwill	 	 	180,097 	  	 	 	180,097 	  	 	 	180,097 	  	 	 	180,097 	  	 	 	180,097 	  	
   Deferred financing costs, less accumulated amortization	 	 	4,739 	  	 	 	4,342 	  	 	 	5,314 	  	 	 	5,240 	  	 	 	5,807 	  	
   Deferred lease costs, less accumulated amortization	 	 	217,757 	  	 	 	202,165 	  	 	 	198,556 	  	 	 	165,001 	  	 	 	146,850 	  	
   Other assets held for sale	 	 	47,353 	  	 	 	44,806 	  	 	 	45,489 	  	 	 	49,944 	  	 	 	50,477 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total assets	 	  $	4,613,118 	  	 	  $	4,560,206 	  	 	  $	4,563,272 	  	 	  $	4,373,480 	  	 	  $	4,389,585 	  	

Liabilities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
   Line of credit and notes payable	 	  $	1,544,525 	  	 	  $	1,517,054 	  	 	  $	1,481,112 	  	 	  $	1,282,525 	  	 	  $	1,282,525 	  	
   Accounts payable, accrued expenses, and accrued capital expenditures	 	 	143,106 	  	 	 	126,111 	  	 	 	122,769 	  	 	 	112,648 	  	 	 	102,411 	  	
   Deferred income	 	 	32,514 	  	 	 	32,161 	  	 	 	38,990 	  	 	 	35,203 	  	 	 	33,882 	  	
   Intangible lease liabilities, less accumulated amortization	 	 	51,599 	  	 	 	38,371 	  	 	 	40,398 	  	 	 	42,005 	  	 	 	44,019 	  	
   Interest rate swap	 	 	-     	  	 	 	-     	  	 	 	367 	  	 	 	691 	  	 	 	1,028 	  	
   Other liabilities held for sale	 	 	124,451 	  	 	 	125,286 	  	 	 	126,119 	  	 	 	126,954 	  	 	 	127,788 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities	 	 	1,896,195 	  	 	 	1,838,983 	  	 	 	1,809,755 	  	 	 	1,600,026 	  	 	 	1,591,653 	  	
 	 	 	 	 	 	
Stockholders’ equity (1) :	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
   Common stock	 	 	1,728 	  	 	 	1,728 	  	 	 	1,727 	  	 	 	1,727 	  	 	 	1,727 	  	
   Additional paid in capital	 	 	3,663,155 	  	 	 	3,662,522 	  	 	 	3,661,570 	  	 	 	3,661,308 	  	 	 	3,660,550 	  	
   Cumulative distributions in excess of earnings	 	 	(952,370)	  	 	 	(948,956)	  	 	 	(915,543)	  	 	 	(895,122)	  	 	 	(869,434)	  	
   Other comprehensive loss	 	 	-     	  	 	 	(44)	  	 	 	(465)	  	 	 	(691)	  	 	 	(1,028)	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Piedmont stockholders’ equity	 	 	2,712,513 	  	 	 	2,715,250 	  	 	 	2,747,289 	  	 	 	2,767,222 	  	 	 	2,791,815 	  	
   Non-controlling interest	 	 	1,613 	  	 	 	1,609 	  	 	 	1,613 	  	 	 	1,609 	  	 	 	1,612 	  	
   Non-controlling interest held for sale	 	 	2,797 	  	 	 	4,364 	  	 	 	4,615 	  	 	 	4,623 	  	 	 	4,505 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total stockholders’ equity	 	 	2,716,923 	  	 	 	2,721,223 	  	 	 	2,753,517 	  	 	 	2,773,454 	  	 	 	2,797,932 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities, redeemable common stock and stockholders’ equity	 	  $	4,613,118 	  	 	  $	4,560,206 	  	 	  $	4,563,272 	  	 	  $	4,373,480 	  	 	  $	4,389,585 	  	

All classes of common stock outstanding at end of period  (1)	 	 	172,827 	  	 	 	172,827 	  	 	 	172,658 	  	 	 	172,658 	  	 	 	172,658 	  	

(1) On January 22, 2010, we filed an amendment to our charter to effect a recapitalization of our common stock as described further in our Securities and Exchange Commission (“SEC”) filings. The recapitalization had the effect of a one-for-three reverse stock split. All prior period per share data has been restated to give net effect to this one-for-three reverse stock split.
 
11

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

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

Revenues:	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Rental income	  	    $	105,878 	  	  	$	104,621 	  	  	$	101,261 	  	  	$	102,137 	  	  	$	102,097 	  	
Tenant reimbursements	  	 	28,459 	  	  	 	30,834 	  	  	 	27,074 	  	  	 	30,694 	  	  	 	26,983 	  	
Property management fee revenue	  	 	110 	  	  	 	363 	  	  	 	830 	  	  	 	948 	  	  	 	806 	  	
Other rental income	  	 	(33)	  	  	 	1,347 	  	  	 	3,404 	  	  	 	1,454 	  	  	 	4,230 	  	
 	  	 	 	 	
      Total revenues	  	 	134,414 	  	  	 	137,165 	  	  	 	132,569 	  	  	 	135,233 	  	  	 	134,116 	  	
 	 	 	 	 	 	
Operating expenses:	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Property operating costs	  	 	51,062 	  	  	 	53,187 	  	  	 	49,008 	  	  	 	53,458 	  	  	 	44,417 	  	
Depreciation	  	 	26,375 	  	  	 	26,061 	  	  	 	25,312 	  	  	 	25,012 	  	  	 	24,317 	  	
Amortization	  	 	14,907 	  	  	 	14,137 	  	  	 	10,367 	  	  	 	9,806 	  	  	 	9,302 	  	
General and administrative	  	 	4,673 	  	  	 	7,344 	  	  	 	6,614 	  	  	 	7,598 	  	  	 	6,595 	  	
 	  	 	 	 	
      Total operating expenses	  	 	97,017 	  	  	 	100,729 	  	  	 	91,301 	  	  	 	95,874 	  	  	 	84,631 	  	

Real estate operating income	  	 	37,397 	  	  	 	36,436 	  	  	 	41,268 	  	  	 	39,359 	  	  	 	49,485 	  	
 	 	 	 	 	 	
Other income (expense):	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Interest expense	  	 	(16,236)	  	  	 	(17,762)	  	  	 	(15,640)	  	  	 	(15,800)	  	  	 	(15,777)	  	
Interest and other income (expense)	  	 	(91)	  	  	 	(238)	  	  	 	3,459 	  	  	 	491 	  	  	 	993	  	
Equity in income of unconsolidated joint ventures	  	 	485 	  	  	 	338 	  	  	 	209 	  	  	 	630 	  	  	 	619	  	
Gain / (loss) on consolidation of variable interest entity	  	 	-     	  	  	 	(388)	  	  	 	1,920 	  	  	 	-     	  	  	 	-     	  	
 	  	 	 	 	
      Total other income (expense)	  	 	(15,842)	  	  	 	(18,050)	  	  	 	(10,052)	  	  	 	(14,679)	  	  	 	(14,165)	  	

Income from continuing operations	  	 	21,555 	  	  	 	18,386 	  	  	 	31,216 	  	  	 	24,680 	  	  	 	35,320 	  	
 	 	 	 	 	 	
Discontinued operations:	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Operating income, excluding impairment loss	  	 	2,719 	  	  	 	2,645 	  	  	 	2,755 	  	  	 	4,841 	  	  	 	5,268 	  	
Gain / (loss) on sale of properties	  	 	26,756 	  	  	 	-     	  	  	 	-     	  	  	 	(817)	  	  	 	-     	  	
 	  	 	 	 	
      Income / (loss) from discontinued operations (1)	  	 	29,475 	  	  	 	2,645 	  	  	 	2,755 	  	  	 	4,024 	  	  	 	5,268 	  	

Net income	  	 	51,030 	  	  	 	21,031 	  	  	 	33,971 	  	  	 	28,704 	  	  	 	40,588 	  	
 	 	 	 	 	 	
Less: Net income attributable to noncontrolling interest	  	 	(4)	  	  	 	(4)	  	  	 	(4)	  	  	 	(4)	  	  	 	(4)	  	

Net income attributable to Piedmont	  	    $	51,026 	  	  	$	21,027 	  	  	$	33,967 	  	  	$	28,700 	  	  	$	40,584 	  	

Weighted average common shares outstanding - diluted	  	 	173,045 	  	  	 	172,986 	  	  	 	172,955 	  	  	 	172,996 	  	  	 	172,885 	  	
 	 	 	 	 	 	
Net income per share available to common stockholders - diluted	  	    $	0.29 	  	  	$	0.12 	  	  	$	0.20 	  	  	$	0.17	  	  	$	0.23	  	

 
(1) Reflects operating results for 111 Sylvan Avenue in Englewood Cliffs, NJ, which was sold on December 8, 2010, Eastpointe Corporate Center in Issaquah, WA, which was sold on July 1, 2011, 5000 Corporate Court in Holtsville, NY, which was sold on August 31, 2011, and 35 West Wacker Drive in Chicago, IL, which is under contract for sale.
 
12

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	 	Nine Months Ended	 	
 	 	  9/30/2011  	 	 	  9/30/2010  	 	 	  Change  	 	 	  Change  	 	 	  9/30/2011  	 	 	  9/30/2010  	 	 	  Change  	 	 	  Change  	 	
 	 	 	 	 	 	 	 	 	
Revenues:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental income	 	  $	    105,878  	  	 	  $	    102,097  	  	 	  $	     3,781  	  	 	 	3.7% 	  	 	  $	     311,760  	  	 	  $	     306,238  	  	 	  $	     5,522  	  	 	 	1.8% 	  	
Tenant reimbursements	 	 	28,459  	  	 	 	26,983  	  	 	 	1,476  	  	 	 	5.5% 	  	 	 	86,368  	  	 	 	84,100  	  	 	 	2,268  	  	 	 	2.7% 	  	
Property management fee revenue	 	 	110  	  	 	 	806  	  	 	 	(696) 	  	 	 	-86.4% 	  	 	 	1,303  	  	 	 	2,265  	  	 	 	(962) 	  	 	 	-42.5% 	  	
Other rental income	 	 	(33) 	  	 	 	4,230  	  	 	 	(4,263) 	  	 	 	-100.8% 	  	 	 	4,718  	  	 	 	5,205  	  	 	 	(487) 	  	 	 	-9.4% 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	 	 	134,414  	  	 	 	134,116  	  	 	 	298  	  	 	 	0.2% 	  	 	 	404,149  	  	 	 	397,808  	  	 	 	6,341  	  	 	 	1.6% 	  	
 	 	 	 	 	 	 	 	 	
Operating expenses:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property operating costs	 	 	51,062  	  	 	 	44,417  	  	 	 	(6,645) 	  	 	 	-15.0% 	  	 	 	153,258  	  	 	 	143,416  	  	 	 	(9,842) 	  	 	 	-6.9% 	  	
Depreciation	 	 	26,375  	  	 	 	24,317  	  	 	 	(2,058) 	  	 	 	-8.5% 	  	 	 	77,748  	  	 	 	72,264  	  	 	 	(5,484) 	  	 	 	-7.6% 	  	
Amortization	 	 	14,907  	  	 	 	9,302  	  	 	 	(5,605) 	  	 	 	-60.3% 	  	 	 	39,411  	  	 	 	28,215  	  	 	 	(11,196) 	  	 	 	-39.7% 	  	
General and administrative	 	 	4,673  	  	 	 	6,595  	  	 	 	1,922  	  	 	 	29.1% 	  	 	 	18,631  	  	 	 	20,790  	  	 	 	2,159  	  	 	 	10.4% 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses	 	 	97,017  	  	 	 	84,631  	  	 	 	(12,386) 	  	 	 	-14.6% 	  	 	 	289,048  	  	 	 	264,685  	  	 	 	(24,363) 	  	 	 	-9.2% 	  	

Real estate operating income	 	 	37,397  	  	 	 	49,485  	  	 	 	(12,088) 	  	 	 	-24.4% 	  	 	 	115,101  	  	 	 	133,123  	  	 	 	(18,022) 	  	 	 	-13.5% 	  	
 	 	 	 	 	 	 	 	 	
Other income (expense):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest expense	 	 	(16,236) 	  	 	 	(15,777) 	  	 	 	(459) 	  	 	 	-2.9% 	  	 	 	(49,638) 	  	 	 	(50,687) 	  	 	 	1,049  	  	 	 	2.1% 	  	
Interest and other income (expense)	 	 	(91) 	  	 	 	993  	  	 	 	(1,084) 	  	 	 	-109.2% 	  	 	 	3,130  	  	 	 	2,996  	  	 	 	134  	  	 	 	4.5% 	  	
Equity in income of unconsolidated joint ventures	 	 	485  	  	 	 	619  	  	 	 	(134) 	  	 	 	-21.6% 	  	 	 	1,032  	  	 	 	2,003  	  	 	 	(971) 	  	 	 	-48.5% 	  	
Gain / (loss) on consolidation of variable interest entity	 	 	-      	  	 	 	-      	  	 	 	-      	  	 	 	0.0% 	  	 	 	1,532  	  	 	 	-      	  	 	 	1,532  	  	 	 	0.0% 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total other income (expense)	 	 	(15,842) 	  	 	 	(14,165) 	  	 	 	(1,677) 	  	 	 	-11.8% 	  	 	 	(43,944) 	  	 	 	(45,688) 	  	 	 	1,744  	  	 	 	3.8% 	  	

Income from continuing operations	 	 	21,555  	  	 	 	35,320  	  	 	 	(13,765) 	  	 	 	-39.0% 	  	 	 	71,157  	  	 	 	87,435  	  	 	 	(16,278) 	  	 	 	-18.6% 	  	
 	 	 	 	 	 	 	 	 	
Discontinued operations:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income, excluding impairment loss	 	 	2,719  	  	 	 	5,268  	  	 	 	(2,549) 	  	 	 	-48.4% 	  	 	 	8,119  	  	 	 	13,843  	  	 	 	(5,724) 	  	 	 	-41.3% 	  	
Impairment loss	 	 	-      	  	 	 	-      	  	 	 	-      	  	 	 	0.0% 	  	 	 	-      	  	 	 	(9,587) 	  	 	 	9,587  	  	 	 	100.0% 	  	
Gain / (loss) on sale of properties	 	 	26,756  	  	 	 	-      	  	 	 	26,756  	  	 	 	0.0% 	  	 	 	26,756  	  	 	 	-      	  	 	 	26,756  	  	 	 	0.0% 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income / (loss) from discontinued operations  (1)	 	 	29,475  	  	 	 	5,268  	  	 	 	24,207  	  	 	 	459.5% 	  	 	 	34,875  	  	 	 	4,256  	  	 	 	30,619  	  	 	 	719.4% 	  	

Net income	 	 	51,030  	  	 	 	40,588  	  	 	 	10,442  	  	 	 	25.7% 	  	 	 	106,032  	  	 	 	91,691  	  	 	 	14,341  	  	 	 	15.6% 	  	
 	 	 	 	 	 	 	 	 	
Less: Net income attributable to noncontrolling interest	 	 	(4) 	  	 	 	(4) 	  	 	 	-      	  	 	 	0.0% 	  	 	 	(12) 	  	 	 	(12) 	  	 	 	-      	  	 	 	0.0% 	  	

Net income attributable to Piedmont	 	  $	51,026  	  	 	  $	40,584  	  	 	  $	10,442  	  	 	 	25.7% 	  	 	  $	106,020  	  	 	  $	91,679  	  	 	  $	14,341  	  	 	 	15.6% 	  	

Weighted average common shares outstanding - diluted	 	 	173,045  	  	 	 	172,885  	  	 	 	 	 	 	 	 	 	 	 	172,996  	  	 	 	170,257  	  	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	
Net income per share available to common stockholders - diluted	 	  $	0.29  	  	 	  $	0.23  	  	 	 	 	 	 	 	 	 	 	  $	0.61  	  	 	  $	0.54  	  	 	 	 	 	 	 	 	 	

 
(1) Reflects operating results for 111 Sylvan Avenue in Englewood Cliffs, NJ, which was sold on December 8, 2010, Eastpointe Corporate Center in Issaquah, WA, which was sold on July 1, 2011, 5000 Corporate Court in Holtsville, NY, which was sold on August 31, 2011, and 35 West Wacker Drive in Chicago, IL, which is under contract for sale.
 
13

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	 	 	Nine Months Ended	 	
 	 	    9/30/2011    	 	 	    9/30/2010    	 	 	    9/30/2011    	 	 	    9/30/2010    	 	
 	 	 	 	 	
Net income attributable to Piedmont	 	  $	51,026  	  	 	  $	40,584  	  	 	  $	106,020  	  	 	  $	91,679  	  	
 	 	 	 	 	
Depreciation (1) (2)	 	 	28,102  	  	 	 	26,163  	  	 	 	83,135  	  	 	 	78,285  	  	
Amortization (1)	 	 	16,616  	  	 	 	11,119  	  	 	 	44,601  	  	 	 	33,712  	  	
(Gain) / loss on sale of properties (1)	 	 	(26,826) 	  	 	 	-      	  	 	 	(26,872) 	  	 	 	-      	  	
(Gain) / loss on consolidation of VIE	 	 	-      	  	 	 	-      	  	 	 	(1,532) 	  	 	 	-      	  	

Funds from operations	 	 	68,918  	  	 	 	77,866  	  	 	 	205,352  	  	 	 	203,676  	  	
 	 	 	 	 	
Acquisition costs	 	 	285  	  	 	 	310  	  	 	 	975  	  	 	 	358  	  	
Impairment loss (1)	 	 	-  	  	 	 	53  	  	 	 	-  	  	 	 	9,640  	  	

Core funds from operations	 	 	69,203  	  	 	 	78,229  	  	 	 	206,327  	  	 	 	213,674  	  	
 	 	 	 	 	
Depreciation of non real estate assets	 	 	84  	  	 	 	176  	  	 	 	422  	  	 	 	533  	  	
Stock-based and other non-cash compensation expense	 	 	1,111  	  	 	 	1,095  	  	 	 	2,975  	  	 	 	2,458  	  	
Deferred financing cost amortization	 	 	879  	  	 	 	607  	  	 	 	2,546  	  	 	 	2,000  	  	
Amortization of fair market adjustments on notes payable	 	 	471  	  	 	 	-      	  	 	 	1,413  	  	 	 	-     	  	
Straight-line effects of lease revenue (1)	 	 	(4,129) 	  	 	 	(2,921) 	  	 	 	(4,488) 	  	 	 	(2,632) 	  	
Amortization of lease-related intangibles (1)	 	 	(1,817) 	  	 	 	(1,510) 	  	 	 	(4,850) 	  	 	 	(4,461) 	  	
Income from amortization of discount on purchase of mezzanine loans	 	 	-      	  	 	 	(569) 	  	 	 	(484) 	  	 	 	(1,932) 	  	
Acquisition costs	 	 	(285) 	  	 	 	(310) 	  	 	 	(975) 	  	 	 	(358) 	  	
Non-incremental capital expenditures (3)	 	 	(15,538) 	  	 	 	(8,023) 	  	 	 	(46,018) 	  	 	 	(22,722) 	  	

Adjusted funds from operations	 	  $	49,979  	  	 	  $	66,774  	  	 	  $	156,868  	  	 	  $	186,560  	  	

Weighted average common shares outstanding - diluted	 	 	173,045  	  	 	 	172,885  	  	 	 	172,996  	  	 	 	170,257  	  	
 	 	 	 	 	
Funds from operations per share (diluted)	 	  $	0.40  	  	 	  $	0.45  	  	 	  $	1.19  	  	 	  $	1.20  	  	
Core funds from operations per share (diluted)	 	  $	0.40  	  	 	  $	0.45  	  	 	  $	1.19  	  	 	  $	1.26  	  	
Adjusted funds from operations per share (diluted)	 	  $	0.29  	  	 	  $	0.39  	  	 	  $	0.91  	  	 	  $	1.10  	  	

 
(1)	Includes adjustments for wholly-owned properties and for our proportionate ownership in unconsolidated joint ventures.	
 
(2)	Excludes depreciation of non real estate assets.	
(3) Non-incremental capital expenditures are defined on page 35. During the third quarter of 2011, Piedmont revised its definitions of incremental and non-incremental capital expenditures in order to conform with the more broadly accepted definitions for such terms by other office REITs. Capital expenditures have been restated for all prior periods in order to provide a consistent basis for comparison.
 
14

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

 

 	  	Three Months Ended	 	  	Nine Months Ended	 	
 	  	    9/30/2011    	 	 	    9/30/2010    	 	  	    9/30/2011    	 	  	    9/30/2010    	 	
Net income attributable to Piedmont	  	  $	 51,026  	  	 	  $	 40,584  	  	  	  $	 106,020  	  	  	  $	 91,679  	  	
 	 	 	 	 	
Net income attributable to noncontrolling interest	  	 	135  	  	 	 	158  	  	  	 	378  	  	  	 	409  	  	
Interest expense	  	 	17,804  	  	 	 	17,359  	  	  	 	54,291  	  	  	 	55,383  	  	
Depreciation (1)	  	 	28,186  	  	 	 	26,339  	  	  	 	83,557  	  	  	 	78,818  	  	
Amortization (1)	  	 	16,616  	  	 	 	11,119  	  	  	 	44,601  	  	  	 	33,712  	  	
Impairment loss (1)	  	 	-      	  	 	 	53  	  	  	 	-      	  	  	 	9,640  	  	
(Gain) / loss on sale of properties (1)	  	 	(26,826) 	  	 	 	-      	  	  	 	(26,872) 	  	  	 	-      	  	
(Gain) / loss on consolidation of VIE	  	 	-      	  	 	 	-      	  	  	 	(1,532) 	  	  	 	-      	  	
 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Core EBITDA	  	 	86,941  	  	 	 	95,612  	  	  	 	260,443  	  	  	 	269,641  	  	
 	 	 	 	 	
General & administrative expenses (1)	  	 	4,747  	  	 	 	6,806  	  	  	 	18,843  	  	  	 	21,129  	  	
Management fee revenue	  	 	(110) 	  	 	 	(806) 	  	  	 	(1,303) 	  	  	 	(2,265) 	  	
Interest and other income (1)	  	 	74  	  	 	 	(993) 	  	  	 	(3,132) 	  	  	 	(2,998) 	  	
Lease termination income	  	 	33  	  	 	 	(4,230) 	  	  	 	(4,718) 	  	  	 	(5,205) 	  	
Lease termination expense - straight line rent & acquisition intangibles write-offs	  	 	260  	  	 	 	131  	  	  	 	739  	  	  	 
	876  

Straight-line effects of lease revenue (1)	  	 	(4,296) 	  	 	 	(3,053) 	  	  	 	(4,963) 	  	  	 	(3,508) 	  	
Net effect of amortization of above/(below) market in-place lease intangibles  (1)	  	 	(1,911) 	  	 	 	(1,510) 	  	  	 	(5,115) 	  	  	 	(4,461) 	  	
 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Core net operating income	  	 	  85,738  	  	 	 	  91,957 	  	  	 	  260,794 	  	  	 	  273,209 	  	
 	 	 	 	 	
Net operating income from:	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
 	 	 	 	 	
Acquisitions (2)	  	 	(3,400) 	  	 	 	2  	  	  	 	(6,443) 	  	  	 	2  	  	
Dispositions (3)	  	 	245  	  	 	 	(2,554) 	  	  	 	(328) 	  	  	 	(8,028) 	  	
Industrial properties	  	 	(254) 	  	 	 	(90) 	  	  	 	(733) 	  	  	 	(436) 	  	
Unconsolidated joint ventures	  	 	(818) 	  	 	 	(1,217) 	  	  	 	(2,172) 	  	  	 	(3,670) 	  	
 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Same Store NOI	  	$	81,511  	  	 	$	88,098  	  	  	$	251,118  	  	  	$	261,077  	  	
 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Change period over period (4)	  	 	-7.5%(4)    	  	 	 	N/A   	  	  	 	-3.8%  	  	  	 	N/A    	  	

 	 	 
Same Store Net Operating Income
Top Seven Markets	  
  	  	 	
  	 	 	  	Three Months Ended	 	  	 	  	Nine Months Ended	 	  	  	
  	 	 	  	9/30/2011	 	  	9/30/2010	 	  	 	  	9/30/2011	 	  	9/30/2010	 	  	  	
  	 	 	  	$	 	  	%  	 	  	$	 	  	%  	 	  	 	  	$	 	  	%  	 	  	$	 	  	%  	 	  	  	
 	 	 	  	 	 	 	  	 	 	 	  	 	  	 	 	 	  	 	 	 	  	 	
 	 	Chicago (5)	  	  $	21,650	  	  	 	26.6  	  	  	  $	22,981	  	  	 	26.1  	  	  	 	  	  $	59,045	  	  	 	23.5  	  	  	  $	58,277	  	  	 	22.3  	  	  	 	
 	 	Washington, D.C. (6)	  	 	18,068	  	  	 	22.2  	  	  	 	18,592	  	  	 	21.1  	  	  	 	  	 	53,820	  	  	 	21.4  	  	  	 	55,830	  	  	 	21.4  	  	  	 	
 	 	New York (7)	  	 	13,758	  	  	 	16.9  	  	  	 	13,157	  	  	 	14.9  	  	  	 	  	 	41,438	  	  	 	16.5  	  	  	 	37,931	  	  	 	14.5  	  	  	 	
 	 	Minnepolis (8)	  	 	4,359	  	  	 	5.3  	  	  	 	5,381	  	  	 	6.1  	  	  	 	  	 	14,506	  	  	 	5.8  	  	  	 	16,042	  	  	 	6.2  	  	  	 	
 	 	Los Angeles (9)	  	 	2,783	  	  	 	3.4  	  	  	 	3,613	  	  	 	4.1  	  	  	 	  	 	10,398	  	  	 	4.1  	  	  	 	13,691	  	  	 	5.2  	  	  	 	
 	 	Dallas	  	 	3,796	  	  	 	4.7  	  	  	 	4,176	  	  	 	4.8  	  	  	 	  	 	11,001	  	  	 	4.4  	  	  	 	11,938	  	  	 	4.6  	  	  	 	
 	 	Boston (10)	  	 	2,493	  	  	 	3.0  	  	  	 	3,905	  	  	 	4.4  	  	  	 	  	 	8,965	  	  	 	3.6  	  	  	 	11,543	  	  	 	4.4  	  	  	 	
 	 	Other (11)	  	 	14,604	  	  	 	17.9  	  	  	 	16,293	  	  	 	18.5  	  	  	 	  	 	51,945	  	  	 	20.7  	  	  	 	55,825	  	  	 	21.4  	  	  	 	
 	 	 	  	 	 	 	  	 	 	 	  	 	  	 	 	 	  	 	 	 	  	 	
 	 	      Total	  	  $	        81,511	  	  	 	100.0  	  	  	  $	        88,098	  	  	 	100.0  	  	  	 	  	  $	        251,118	  	  	 	100.0  	  	  	  $	        261,077	  	  	 	100.0  	  	  	 	
 	 	 	  	 	 	 	  	 	 	 	  	 	  	 	 	 	  	 	 	 	  	 	
(1) Includes amounts attributable to wholly-owned properties, including discontinued operations, and our proportionate share of amounts attributable to unconsolidated joint ventures.
(2) Acquisitions consist of Suwanee Gateway One in Suwanee, GA, purchased on September 28, 2010, Meridian Crossings in Richfield, MN, purchased on October 1, 2010, 1200 Enclave Parkway in Houston, TX, purchased on March 30, 2011, 500 West Monroe Street in Chicago, IL, acquired on March 31, 2011, The Dupree in Atlanta, GA, purchased on April 29, 2011, The Medici in Atlanta, GA, purchased on June 7, 2011, and 225 and 235 Presidential Way in Woburn, MA, purchased on September 13, 2011.
(3) Dispositions consist of 111 Sylvan Avenue in Englewood Cliffs, NJ, sold on December 8, 2010, Eastpointe Corporate Center in Issaquah, WA, sold on July 1, 2011 and 5000 Corporate Court in Holtsville, NY, sold on August 31, 2011.
(4) Large contributors to the variance between the Same Store Net Operating Income for the three months ended September 30, 2011 and that for September 30, 2010 were one-time items such as the property tax accrual adjustments made in 2010 associated with successful appeals of Chicago property tax assessments. Excluding the impact of these one-time adjustments, the period over period change would have been -3.1%.
(5) The decrease in Chicago Same Store Net Operating Income for the three months ended September 30, 2011 as compared to the same period in 2010 was primarily related to one-time adjustments to property tax accruals made in the third quarter of 2010 related to successful appeals of property tax assessments which resulted in lower property tax liabilities in 2010. This decrease in Chicago Same Store Net Operating Income for the three months ended September 30, 2011 was offset somewhat by increased rental income at Windy Point I in Schaumburg, IL due to a rental abatement concession in 2010 associated with a lease renewal.
(6) The decrease in Washington, D.C. Same Store Net Operating Income for the three months and the nine months ended September 30, 2011 as compared to the same periods in 2010 was primarily related to a 46,000 square foot lease termination at the beginning of the first quarter of 2011 at 1201 Eye Street in Washington, D.C. as well as the expiration of a 41,000 square foot lease during the first quarter of 2011 at 11109 Sunset Hills Road in Reston, VA.
(7) The increase in New York Same Store Net Operating Income for the three months and the nine months ended September 30, 2011 as compared to the same periods in 2010 was primarily related to rental rate increases at 60 Broad Street in New York, NY. An additional contributor to the increase in New York Same Store Net Operating Income for the nine months ended September 30, 2011 as compared to the same period in 2010 was a rental abatement concession that was provided in 2010 associated with the lease extension/restructure with the State of New York at 60 Broad Street in New York, NY.
(8) The decrease in Minneapolis Same Store Net Operating Income for the three months and the nine months ended September 30, 2011 as compared to the same periods in 2010 was primarily related to an 80,000 square foot partial lease termination by US Bank during the second quarter of 2011 at US Bancorp Center in Minneapolis, MN.
(9) The decrease in Los Angeles Same Store Net Operating Income for the three months and the nine months ended September 30, 2011 as compared to the same periods in 2010 was primarily due to a rental abatement concession in 2011 associated with a long-term lease renewal with Panasonic at 26200 Enterprise Way in Lake Forest, CA, and the expiration of a lease, resulting in a net decrease in leased square footage of 58,000 square feet, at 1055 East Colorado Boulevard in Pasadena, CA. An additional contributor to the decrease in Los Angeles Same Store Net Operating Income for the nine months ended September 30, 2011 as compared to the same period in 2010 was a space contraction associated with the Nestle lease renewal effective third quarter 2010 along with a roll down of total revenues per square foot received from that tenant at 800 North Brand Boulevard in Glendale, CA.
(10) The decrease in Boston Same Store Net Operating Income for the three months and the nine months ended September 30, 2011 as compared to the same periods in 2010 was primarily due to a rental rate reduction and a rental abatement concession associated with a long-term lease renewal with State Street Bank at 1200 Crown Colony Drive in Quincy, MA.
(11) The decrease in Other Same Store Net Operating Income for the three months and the nine months ended September 30, 2011 as compared to the same periods in 2010 was due to a number of factors, the largest four of which were reduced rental rates achieved on new and renewal leases which commenced in late 2010 and early 2011 at 150 West Jefferson in Detroit, MI, a rental abatement concession in 2011 associated with a new lease with Chrysler Group, LLC and the related early termination of the previous lease at 1075 West Entrance in Auburn Hills, MI, a lease contraction of approximately 91,000 square feet effective third quarter 2010 at Chandler Forum in Chandler, AZ, and a rental abatement concession in 2011 associated with a new lease at Desert Canyon 300 in Phoenix, AZ.
 
15

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	  	Nine Months Ended	 	
 	  	    9/30/2011    	 	 	    9/30/2010    	 	  	    9/30/2011    	 	  	    9/30/2010    	 	
 	 	 	 	 	
Net income attributable to Piedmont	  	   $	51,026  	  	 	  $	40,584  	  	  	  $	106,020  	  	  	  $	91,679  	  	
 	 	 	 	 	
Net income attributable to noncontrolling interest	  	 	135  	  	 	 	158  	  	  	 	378  	  	  	 	409  	  	
Interest expense	  	 	17,804  	  	 	 	17,359  	  	  	 	54,291  	  	  	 	55,383  	  	
Depreciation (1)	  	 	28,186  	  	 	 	26,339  	  	  	 	83,557  	  	  	 	78,818  	  	
Amortization (1)	  	 	16,616  	  	 	 	11,119  	  	  	 	44,601  	  	  	 	33,712  	  	
Impairment loss (1)	  	 	-      	  	 	 	53  	  	  	 	-      	  	  	 	9,640  	  	
(Gain) / loss on sale of properties (1)	  	 	(26,826)  	  	 	 	-      	  	  	 	(26,872)  	  	  	 	-      	  	
(Gain) / loss on consolidation of VIE	  	 	-      	  	 	 	-      	  	  	 	(1,532)  	  	  	 	-      	  	
 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Core EBITDA	  	 	86,941  	  	 	 	95,612  	  	  	 	260,443  	  	  	 	269,641  	  	
 	 	 	 	 	
General & administrative expenses (1)	  	 	4,747  	  	 	 	6,806  	  	  	 	18,843  	  	  	 	21,129  	  	
Management fee revenue	  	 	(110)  	  	 	 	(806) 	  	  	 	(1,303) 	  	  	 	(2,265) 	  	
Interest and other income (1)	  	 	74  	  	 	 	(993) 	  	  	 	(3,132) 	  	  	 	(2,998) 	  	
Lease termination income	  	 	33  	  	 	 	(4,230) 	  	  	 	(4,718) 	  	  	 	(5,205) 	  	
Lease termination expense - straight line rent & acquisition intangibles write-offs	  	 	260  	  	 	 	131  	  	  	 	739  	  	  	 	876  	  	
 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Core net operating income	  	 	91,945  	  	 	 	96,520  	  	  	 	270,872  	  	  	 	281,178  	  	
 	 	 	 	 	
Net operating income from:	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Acquisitions (2)	  	 	(4,769)  	  	 	 	2  	  	  	 	(10,295)  	  	  	 	2  	  	
Dispositions (3)	  	 	165  	  	 	 	(2,455) 	  	  	 	(865)  	  	  	 	(7,386) 	  	
Industrial properties	  	 	(266)  	  	 	 	(110) 	  	  	 	(780)  	  	  	 	(476) 	  	
Unconsolidated joint ventures	  	 	(771)  	  	 	 	(1,142) 	  	  	 	(2,040)  	  	  	 	(3,517) 	  	
 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Same Store NOI	  	  $	86,304  	  	 	  $	92,815  	  	  	  $	256,892  	  	  	  $	269,801  	  	
 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Change period over period (4)	  	 	-7.0%(4)	  	 	 	N/A   	  	  	 	-4.8%  	  	  	 	N/A    	  	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
    Same Store Net Operating Income
    Top Seven Markets	
  	 	 	  	Three Months Ended	 	  	 	 	Nine Months Ended	 	  	  	
  	 	 	  	9/30/2011	 	 	9/30/2010	 	  	 	 	9/30/2011	 	 	9/30/2010	 	  	  	
  	 	 	  	$	 	 	%  	 	 	$	 	  	%  	 	  	 	 	$	 	 	%  	 	 	$	 	 	%  	 	  	  	
 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	  	 	
 	 	Chicago (5)	  	  $	    22,286	  	 	 	25.8  	  	 	  $	24,767	  	  	 	26.7  	  	  	 	 	  $	    60,839	  	 	 	23.7  	  	 	  $	63,657	  	 	 	23.6  	  	  	 	
 	 	Washington, D.C.	  	 	18,987	  	 	 	22.0  	  	 	 	18,701	  	  	 	20.2  	  	  	 	 	 	55,287	  	 	 	21.5  	  	 	 	56,189	  	 	 	20.8  	  	  	 	
 	 	New York	  	 	13,273	  	 	 	15.4  	  	 	 	13,488	  	  	 	14.5  	  	  	 	 	 	40,592	  	 	 	15.8  	  	 	 	40,515	  	 	 	15.0  	  	  	 	
 	 	Minneapolis (6)	  	 	4,283	  	 	 	5.0  	  	 	 	5,183	  	  	 	5.6  	  	  	 	 	 	14,033	  	 	 	5.5  	  	 	 	15,520	  	 	 	5.8  	  	  	 	
 	 	Los Angeles (7)	  	 	2,876	  	 	 	3.3  	  	 	 	4,735	  	  	 	5.1  	  	  	 	 	 	10,930	  	 	 	4.2  	  	 	 	14,901	  	 	 	5.5  	  	  	 	
 	 	Dallas	  	 	3,730	  	 	 	4.3  	  	 	 	3,929	  	  	 	4.2  	  	  	 	 	 	11,366	  	 	 	4.4  	  	 	 	11,415	  	 	 	4.2  	  	  	 	
 	 	Boston (8)	  	 	2,843	  	 	 	3.3  	  	 	 	3,572	  	  	 	3.8  	  	  	 	 	 	9,199	  	 	 	3.6  	  	 	 	10,683	  	 	 	4.0  	  	  	 	
 	 	Other (9)	  	 	18,026	  	 	 	20.9  	  	 	 	18,440	  	  	 	19.9  	  	  	 	 	 	54,646	  	 	 	21.3  	  	 	 	56,921	  	 	 	21.1  	  	  	 	
 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	  	 	
 	 	Total	  	  $	        86,304	  	 	 	100.0  	  	 	  $	    92,815	  	  	 	100.0  	  	  	 	 	  $	        256,892	  	 	 	100.0  	  	 	  $	        269,801	  	 	 	100.0  	  	  	 	

(1) Includes amounts attributable to wholly-owned properties, including discontinued operations, and our proportionate share of amounts attributable to unconsolidated joint ventures.
(2) Acquisitions consist of Suwanee Gateway One in Suwanee, GA, purchased on September 28, 2010, Meridian Crossings in Richfield, MN, purchased on October 1, 2010, 1200 Enclave Parkway in Houston, TX, purchased on March 30, 2011, 500 West Monroe Street in Chicago, IL, acquired on March 31, 2011, The Dupree in Atlanta, GA, purchased on April 29, 2011, The Medici in Atlanta, GA, purchased on June 7, 2011, and 225 and 235 Presidential Way in Woburn, MA, purchased on September 13, 2011.
(3) Dispositions consist of 111 Sylvan Avenue in Englewood Cliffs, NJ, sold on December 8, 2010, Eastpointe Corporate Center in Issaquah, WA, sold on July 1, 2011 and 5000 Corporate Court in Holtsville, NY, sold on August 31, 2011.
(4) Large contributors to the variance between the Same Store Net Operating Income for the three months ended September 30, 2011 and that for September 30, 2010 were one-time items such as the property tax accrual adjustments made in 2010 associated with successful appeals of Chicago property tax assessments. Excluding the impact of these one-time adjustments, the period over period change would have been -4.0%.
(5) The decrease in Chicago Same Store Net Operating Income for the three months and the nine months ended September 30, 2011 as compared to the same periods in 2010 was primarily related to one-time adjustments to property tax accruals made in the third quarter of 2010 related to successful appeals of property tax assessments which resulted in lower property tax liabilities in 2010.
(6) The decrease in Minneapolis Same Store Net Operating Income for the three months and the nine months ended September 30, 2011 as compared to the same periods in 2010 was primarily related to an 80,000 square foot partial lease termination by US Bank during the second quarter of 2011 at US Bancorp Center in Minneapolis, MN.
(7) The decrease in Los Angeles Same Store Net Operating Income for the three months and the nine months ended September 30, 2011 as compared to the same periods in 2010 was primarily due to a space contraction associated with the Nestle lease renewal effective third quarter 2010 along with a roll down of total revenues per square foot received from that tenant at 800 North Brand Boulevard in Glendale, CA, and the expiration of a lease, resulting in a net decrease in leased square footage of 58,000 square feet, at 1055 East Colorado Boulevard in Pasadena, CA.
(8) The decrease in Boston Same Store Net Operating Income for the three months and the nine months ended September 30, 2011 as compared to the same periods in 2010 was primarily due to a rental rate reduction associated with a long-term lease renewal with State Street Bank at 1200 Crown Colony Drive in Quincy, MA.
(9) The decrease in Other Same Store Net Operating Income for the nine months ended September 30, 2011 as compared to the same period in 2010 was due to a number of factors, the largest four of which were reduced rental rates achieved on new and renewal leases which commenced in late 2010 and early 2011 at 150 West Jefferson in Detroit, MI, a rental rate reduction associated with a new lease with Chrysler Group, LLC and the related early termination of the previous lease at 1075 West Entrance in Auburn Hills, MI, a lease contraction of approximately 91,000 square feet effective third quarter 2010 at Chandler Forum in Chandler, AZ, and a rental rate reduction associated with a new lease at Desert Canyon 300 in Phoenix, AZ.
 
16

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

 
 	 	 	 	 	 	 	 	 	 	 	
 	  	As of
    September 30, 2011    	 	  	As of
    December 31, 2010    	 	  	 	
 
Common stock price (1)	  	 
 	 
$16.17	 
  	  	 	$20.14	  	  	 	
 
Total shares outstanding	  	 	172,827	  	  	 	172,658	  	  	 	
 
Equity market capitalization (1)	  	 	$2,794,612	  	  	 	$3,477,342	  	  	 	
 
Total gross debt - principal amount outstanding (2)	  	 	$1,664,525	  	  	 	$1,402,525	  	  	 	
 
Total market capitalization (1) (2)	  	 	$4,459,137	  	  	 	$4,879,867	  	  	 	
 
Total gross debt / Total market capitalization (2)	  	 	37.3%	  	  	 	28.7%	  	  	 	
 
Total gross real estate assets	  	 	$4,875,854	  	  	 	$4,567,326	  	  	 	
 
Total gross debt / Total gross real estate assets (2) (3)	  	 	34.1%	  	  	 	30.7%	  	  	 	
 
Total gross debt / Total gross assets (3) (4)	  	 	29.9%	  	  	 	26.6%	  	  	 	

(1) Reflects common stock closing price as of the end of the reporting period.
(2) Total gross debt includes $120 million of debt associated with one held-for-sale asset, 35 West Wacker Drive.
(3) Total gross debt to total gross real estate assets ratio is defined as total gross debt divided by gross real estate assets. Gross real estate assets is defined as total real estate assets with the add back of accumulated depreciation and accumulated amortization related to real estate assets.
(4) Total gross debt to total gross assets ratio is defined as total gross debt divided by gross assets. Gross assets is defined as total assets with the add back of accumulated depreciation and accumulated amortization related to real estate assets.
 
17

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

 
 	 	 	 	 	 	 	 	 	
Floating Rate & Fixed Rate Debt	
Debt (1)	  	Principal Amount
Outstanding	 	Weighted Average
Stated Interest Rate	 	Weighted Average
Maturity	  	 

Floating Rate	  	$512,000(2)	 	1.03%(3)	 	10.8 months	  	 	
Fixed Rate	  	1,152,525(4)	 	5.16%	 	39.9 months	  	 	
 	  	 	
Total (4)	  	$1,664,525	 	3.89%	 	30.9 months	  	 	

 	  	 	 	 	 	 	  	 	

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

Unsecured	  	$327,000	 	0.84%(5)	 	11.0 months	  	 	
Secured	  	1,337,525(4)	 	4.63%	 	35.8 months	  	 	
 	  	 	
Total (4)	  	$1,664,525	 	3.89%	 	30.9 months	  	 	

 	  	 	 	 	 	 	  	 	

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

2011	  	$0	  	 	  	$0	  	 	  	N/A	  	0.0%	  	 	
2012	  	230,000	  	 	  	327,000	  	 	  	1.36%	  	33.5%	  	 	
2013	  	0	  	 	  	0	  	 	  	N/A	  	0.0%	  	 	
2014	  	695,000	  	 	  	0	  	 	  	4.92%	  	41.7%	  	 	
2015	  	105,000	  	 	  	0	  	 	  	5.29%	  	6.3%	  	 	
2016	  	167,525	  	 	  	0	  	 	  	5.55%	  	10.1%	  	 	
2017	  	140,000	  	 	  	0	  	 	  	5.76%	  	8.4%	  	 	
 	  	 	
Total (4)	  	$1,337,525	  	 	  	$327,000	  	 	  	3.89%	  	100.0%	  	 	
 	  	 	
(1) All of Piedmont’s outstanding debt as of September 30, 2011 is interest-only debt.
(2) Amount represents the outstanding balance as of September 30, 2011 on the $500 million unsecured line of credit, totaling $327 million, along with the balances on two loans secured by 500 West Monroe Street or equity ownership interests therein, totaling $185 million.
(3) The weighted average interest rate is a weighted average rate for amounts drawn under our $500 million unsecured line of credit and the loans totaling $185 million related to 500 West Monroe Street. Please see the following page for additional details on the interest rate for each loan.
(4) Includes $120 million of debt associated with one held-for-sale asset, 35 West Wacker Drive.
(5) The weighted average interest rate is a weighted average rate for amounts drawn under our $500 million unsecured line of credit.
 
18

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	
Facility	 	Property	  	Rate(1)	 	Maturity	 	  	Principal Amount
Outstanding as of
September 30, 2011	 	

Secured	 	 	  	 	 	 	 	 	  	 	 	 	
$140.0 Million Floating-Rate Loan	 	500 West Monroe Street	  	LIBOR + 1.01% (2)	 	 	8/9/2012	  	  	 	$140,000	  	
$45.0 Million Floating-Rate Mezzanine Loan (3)	 	500 West Monroe Street	  	LIBOR + 1.45% (2)	 	 	8/9/2012	  	  	 	45,000	  	
$45.0 Million Fixed-Rate Loan	 	4250 North Fairfax	  	5.20%	 	 	6/1/2012	  	  	 	45,000	  	
$120.0 Million Fixed-Rate Loan (4)	 	35 West Wacker Drive	  	5.10%	 	 	1/1/2014	  	  	 	120,000	  	
$200.0 Million Fixed-Rate Loan	 	Aon Center	  	4.87%	 	 	5/1/2014	  	  	 	200,000	  	
$25.0 Million Fixed-Rate Loan	 	Aon Center	  	5.70%	 	 	5/1/2014	  	  	 	25,000	  	
$350.0 Million Secured Pooled Facility	 	Nine Property Collateralized Pool (5)	  	4.84%	 	 	6/7/2014	  	  	 	350,000	  	
$105.0 Million Fixed-Rate Loan	 	US Bancorp Center	  	5.29%	 	 	5/11/2015	  	  	 	105,000	  	
$125.0 Million Fixed-Rate Loan	 	Four Property Collateralized Pool (6)	  	5.50%	 	 	4/1/2016	  	  	 	125,000	  	
$42.5 Million Fixed-Rate Loan	 	Las Colinas Corporate Center I & II	  	5.70%	 	 	10/11/2016	  	  	 	42,525	  	
$140.0 Million WDC Fixed-Rate Loans	 	1201 & 1225 Eye Street	  	5.76%	 	 	11/1/2017	  	  	 	140,000	  	

Subtotal / Weighted Average (7) (8)	 	 	  	4.63%	 	 	 	 	  	 	$1,337,525	  	
 	 	 	 	 	
Unsecured	 	 	  	 	 	 	 	 	  	 	 	 	
$500 Million Unsecured Facility (9)	 	N/A	  	      0.84%(10)	 	 	8/30/2012	  	  	 	327,000	  	

Subtotal / Weighted Average (7)
 	 	 	  	0.84%
 	 	 	 	 	  	 
 	$327,000

 	 	
Total Gross Debt - Principal Amount Outstanding / Weighted Average Stated Rate (7) (11)	  	3.89%	 	 	 	 	  	 	$1,664,525	  	
 	 	
(1) All of Piedmont’s outstanding debt as of September 30, 2011 is interest-only debt.
(2) The LIBOR rate effective under this loan on September 30, 2011 was 0.229%. There are interest rate cap agreements in place through August 2012 that limit Piedmont’s LIBOR exposure to 2.19%. Any increases in LIBOR above 2.19% are the responsibility of the counterparty.
(3) The principal balance of this loan is $61.5 million. Piedmont owns a $16.5 million junior participation in this loan, which is eliminated upon consolidation.
(4) This loan is associated with our held-for-sale asset, 35 West Wacker Drive. The buyer of Piedmont’s ownership interests in the building will assume this debt upon the completion of the sale.
(5) The nine property collateralized pool includes 1200 Crown Colony Drive, Braker Pointe III, 2 Gatehall Drive, One and Two Independence Square, 2120 West End Avenue, 200 and 400 Bridgewater Crossing, and Fairway Center II.
(6) The four property collateralized pool includes 1430 Enclave Parkway, Windy Point I and II, and 1055 East Colorado Boulevard.
(7) Weighted average is based on the total balance outstanding and interest rate at September 30, 2011.
(8) Weighted average interest rate excluding the debt associated with 35 West Wacker Drive is 4.59%.
(9) All of Piedmont’s outstanding debt as of September 30, 2011 is term debt with the exception of the $500 million unsecured line of credit.
(10) The interest rate on the $500 million unsecured line of credit is equal to the weighted-average interest rate on all outstanding draws as of September 30, 2011. Piedmont may select from multiple interest rate options with each draw, including the prime rate and various length LIBOR locks. All LIBOR selections are subject to an additional spread (0.475% as of September 30, 2011) over the selected rate based on Piedmont’s current credit rating.
(11) Weighted average interest rate excluding the debt associated with 35 West Wacker Drive is 3.79%.
 
19

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

 
 	 	 	 	 	 	 	 	 	
Debt Covenant Compliance (1)	  	        Required         	 	  	        Actual         	 	
 
Maximum Leverage Ratio	  	 	0.60	  	  	 	0.35	  	
 
Minimum Fixed Charge Coverage Ratio (2)	  	 	1.50	  	  	 	4.90	  	
 
Maximum Secured Indebtedness Ratio	  	 	0.40	  	  	 	0.28	  	
 
Minimum Unencumbered Leverage Ratio	  	 	1.60	  	  	 	5.94	  	
 
Minimum Unencumbered Interest Coverage Ratio (3)	  	 	1.75	  	  	 	23.18	  	
 
Maximum Certain Permitted Investments Ratio (4)	  	 	0.35	  	  	 	0.01	  	

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

   	

 	 	 	 	 	 	 	
Other Debt Coverage Ratios (5)	  	Three months ended
September 30, 2011	  	Nine months ended
September 30, 2011	  	Year ended
December 31,  2010        	
 
Net debt to core EBITDA	  	4.6 x	  	4.6 x	  	3.8 x	
 
Fixed charge coverage ratio (6)	  	4.9 x	  	4.8 x	  	4.9 x	
 
Interest coverage ratio (7)	  	4.9 x	  	4.8 x	  	4.9 x	

 
(5) The change in Piedmont’s debt coverage ratios in 2011 as compared to those for the year ended December 31, 2010, is primarily attributable to the addition of $185 million of debt associated with 500 West Monroe Street. All ratios include amounts attributable to 35 West Wacker Drive.
 
(6) Fixed charge coverage is calculated as Core EBITDA divided by the sum of interest expense, principal amortization, capitalized interest and preferred dividends. We had no capitalized interest, principal amortization or preferred dividends during the periods ended September 30, 2011 and December 31, 2010.
 
(7) Interest coverage ratio is calculated as Core EBITDA divided by the sum of interest expense and capitalized interest. We had no capitalized interest during the periods ended September 30, 2011 and December 31, 2010.	
 
20

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
  	 	Credit Rating (2)	 	Number of
Properties	 	Lease
Expiration(s)  (3)	 	Annualized Lease
Revenue	 	Percentage of
Annualized Lease
Revenue (%)	 	Leased Square
Footage	 	Percentage of
Leased Square
Footage (%)	
U.S. Government	 	AA+ / Aaa	 	9	 	(4)	 	$73,050	 	12.3	 	1,598	 	8.5	
BP (5)	 	A / A2	 	1	 	2013	 	31,289	 	5.3	 	776	 	4.1	
US Bancorp	 	A+ / Aa3	 	3	 	2014 / 2023 (6)	 	26,811	 	4.5	 	973	 	5.2	
Leo Burnett	 	BBB+ / Baa2	 	2	 	2019	 	26,470	 	4.5	 	682	 	3.6	
State of New York	 	AA / Aa2	 	1	 	2019	 	21,469	 	3.6	 	481	 	2.5	
Winston & Strawn	 	No rating available (7)	 	1	 	2024	 	18,300	 	3.1	 	417	 	2.2	
Sanofi-aventis	 	AA- / A2	 	2	 	2012	 	16,414	 	2.8	 	415	 	2.2	
Independence Blue Cross	 	No rating available	 	1	 	2023	 	14,571	 	2.5	 	761	 	4.0	
Nestle	 	AA / Aa1	 	1	 	2015	 	14,131	 	2.4	 	392	 	2.1	
GE	 	AA+ / Aa2	 	2	 	2012	 	11,216	 	1.9	 	333	 	1.8	
Kirkland & Ellis	 	No rating available (7)	 	1	 	2011	 	10,212	 	1.7	 	332	 	1.8	
Shaw	 	BBB- / Ba1	 	1	 	2018	 	9,782	 	1.6	 	313	 	1.7	
City of New York	 	AA / Aa2	 	1	 	2020	 	9,372	 	1.6	 	313	 	1.7	
Lockheed Martin	 	A- / Baa1	 	3	 	2014	 	9,142	 	1.5	 	284	 	1.5	
DDB Needham	 	BBB+ / Baa1	 	1	 	2018	 	8,874	 	1.5	 	246	 	1.3	
Gallagher	 	No rating available	 	1	 	2018	 	7,969	 	1.3	 	307	 	1.6	
Gemini	 	A+ / Aa3	 	1	 	2021	 	7,320	 	1.2	 	205	 	1.1	
Caterpillar Financial	 	A / A2	 	1	 	2022	 	7,125	 	1.2	 	312	 	1.7	
Marsh USA	 	BBB- / Baa2	 	1	 	2011	 	6,819	 	1.2	 	173	 	0.9	
Harvard University	 	AAA / Aaa	 	2	 	2017	 	6,600	 	1.1	 	105	 	0.6	
KeyBank	 	A- / A3	 	2	 	2016	 	6,393	 	1.1	 	210	 	1.1	
Edelman	 	No rating available	 	1	 	2024	 	6,063	 	1.0	 	178	 	0.9	
Raytheon	 	A- / Baa1	 	2	 	2019	 	5,939	 	1.0	 	440	 	2.3	
Other	 	 	 	 	 	Various	 	237,571	 	40.1	 	8,623	 	45.6	
Total	 	 	 	 	 	 	 	$592,902	 	100.0	 	18,869	 	100.0	

(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.
(3) Represents the expiration year of the majority of the square footage leased by the tenant.
(4) There are several leases with several different agencies of the U.S. Government with expiration years ranging from 2012 to 2027.
(5) Majority of the space is subleased to Aon Corporation.
(6) US Bank’s lease at One & Two Meridian Crossings, representing approximately 337,000 square feet and $8.1 million of Annualized Lease Revenue, expires in 2023. US Bancorp’s lease at US Bancorp Center for 635,000 square feet, representing $18.7 million of Annualized Lease Revenue, expires in 2014.
(7) While no ratings are available for Winston & Strawn and Kirkland & Ellis, these tenants are ranked #34 and #6, respectively, in the 2011 AmLaw 100 ranking (based on 2010 financial data), a publication of The American Lawyer Magazine, which annually ranks the top-grossing and most profitable law firms.
 
21

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

 
 	 	 	 	 	 	 	 	 	
    Tenant Credit Rating (1)	  	Annualized Lease
Revenue ($’s in
thousands)	 	  	Percentage of
Annualized Lease
Revenue (%)	  	  	
    AAA / Aaa	  	 	$10,012	  	  	1.7	  	 	
    AA / Aa	  	 	199,922	  	  	33.7	  	 	
    A / A	  	 	101,305	  	  	17.1	  	 	
    BBB / Baa	  	 	102,588	  	  	17.3	  	 	
    BB / Ba	  	 	7,519	  	  	1.3	  	 	
    B / B	  	 	20,231	  	  	3.4	  	 	
    Below	  	 	0	  	  	0.0	  	 	
    Not rated (2)	  	 	151,325	  	  	25.5	  	 	
 	  	 	 	 	  	 	  	 	
    Total	  	 	$592,902	  	  	100.0	  	 	

Lease Distribution
As of September 30, 2011

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

2,500 or Less	  	172	  	33.7	  	 	$16,050	  	  	2.7	  	136	  	0.7	
2,501 - 10,000	  	135	  	26.3	  	 	24,641	  	  	4.1	  	725	  	3.9	
10,001 - 20,000	  	63	  	12.3	  	 	27,863	  	  	4.7	  	915	  	4.8	
20,001 - 40,000	  	55	  	10.8	  	 	49,060	  	  	8.3	  	1,595	  	8.5	
40,001 - 100,000	  	31	  	6.1	  	 	56,366	  	  	9.5	  	1,983	  	10.5	
Greater than 100,000	  	55	  	10.8	  	 	418,922	  	  	70.7	  	13,515	  	71.6	
 	
Total	  	511	  	100.0	  	 	$592,902	  	  	100.0	  	18,869	  	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” does not indicate that the tenant is of poor credit quality, but can indicate that the tenant or the tenant’s debt, if any, has not been rated. Included in this category are such tenants as Winston & Strawn, Independence Blue Cross, McKinsey & Company and KPMG.
 
22

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

 	  	Three Months Ended September 30, 2011	 	 	 	  	Three Months Ended September 30, 2010	 	
 	  	 	 	 	 	 	  	 	 	 	
 	  	Leased Square
Footage	 	 	Rentable Square
Footage	 	 	Percent
Leased  (1)	 	 	 	  	Leased Square
Footage	 	 	Rentable Square
Footage	 	  	Percent
Leased  (1)	 	
 	  	 	 	 	 	 	  	 	 	 	
As of June 30, 20xx	  	 	18,861	  	 	 	21,817	  	 	 	86.5%	  	 	 	  	 	18,198	  	 	 	20,274	  	  	 	89.8%	  	
New leases	  	 	770	  	 	 	 	 	 	 	 	 	 	 	  	 	784	  	 	 	 	 	  	 	 	 	
Expired leases	  	 	(924	) 	 	 	 	 	 	 	 	 	 	 	  	 	(788	) 	 	 	 	 	  	 	 	 	
Other	  	 	4	  	 	 	2	  	 	 	 	 	 	 	  	 	(2	) 	 	 	13	  	  	 	 	 	
 	  	 	 	 	 	 	  	 	 	 	
Subtotal	  	 	18,711	  	 	 	21,819	  	 	 	85.8%	  	 	 	  	 	18,192	  	 	 	20,287	  	  	 	89.7%	  	
 	 	 	 	 	 	 	 	
Acquisitions during period	  	 	440	  	 	 	440	  	 	 	 	 	 	 	  	 	-    	  	 	 	142	  	  	 	 	 	
Dispositions during period	  	 	(282	) 	 	 	(420	) 	 	 	 	 	 	 	  	 	-    	  	 	 	-    	  	  	 	 	 	
 	 	 	 	 	 	 	 	
As of September 30, 20xx (2) (3) (4)	  	 	18,869	  	 	 	21,839	  	 	 	86.4%	  	 	 	  	 	18,192	  	 	 	20,429	  	  	 	89.0%	  	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Nine Months Ended September 30, 2011	 	 	 	  	Nine Months Ended September 30, 2010	 	
 	  	 	 	 	 	 	  	 	 	 	
 	  	Leased Square
Footage	 	 	Rentable Square
Footage	 	 	Percent
Leased  (1)	 	 	 	  	Leased Square
Footage	 	 	Rentable Square
Footage	 	 	Percent
Leased  (1)	 	
 	  	 	 	 	 	 	  	 	 	 	
As of December 31, 20xx	  	 	18,214	  	 	 	20,408	  	 	 	89.2%	  	 	 	  	 	18,221	  	 	 	20,229	  	 	 	90.1%	  	
New leases	  	 	2,584	  	 	 	 	 	 	 	 	 	 	 	  	 	1,937	  	 	 	 	 	 	 	 	 	
Expired leases	  	 	(2,903	) 	 	 	 	 	 	 	 	 	 	 	  	 	(1,965	) 	 	 	 	 	 	 	 	 	
Other	  	 	1	  	 	 	9	  	 	 	 	 	 	 	  	 	(1	) 	 	 	58	  	 	 	 	 	
 	  	 	 	 	 	 	  	 	 	 	
Subtotal	  	 	17,896	  	 	 	20,417	  	 	 	87.7%	  	 	 	  	 	18,192	  	 	 	20,287	  	 	 	89.7%	  	
 	 	 	 	 	 	 	 	
Acquisitions during period	  	 	1,255	  	 	 	1,842	  	 	 	 	 	 	 	  	 	-    	  	 	 	142	  	 	 	 	 	
Dispositions during period	  	 	(282	) 	 	 	(420	) 	 	 	 	 	 	 	  	 	-    	  	 	 	-    	  	 	 	 	 	
 	 	 	 	 	 	 	 	
As of September 30, 20xx (2) (3) (4)	  	 	18,869	  	 	 	21,839	  	 	 	86.4%	  	 	 	  	 	18,192	  	 	 	20,429	  	 	 	89.0%	  	
 	 	 	 	 	 	 	 	
Same Store Analysis	  	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
Less acquisitions/dispositions after September 30, 2010 (5)(6)	  	 	(1,640	) 	 	 	(2,226	) 	 	 	73.7%	  	 	 	  	 	(779	) 	 	 	(830	) 	 	 	93.8%	  	
 	 	 	 	 	 	 	 	
Same Store Total	  	 	17,229	  	 	 	19,613	  	 	 	87.8%	  	 	 	  	 	17,413	  	 	 	19,599	  	 	 	88.8%	  	

Stabilized Portfolio Analysis	  	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
Less value-add properties (6)	  	 	(718	) 	 	 	(1,406	) 	 	 	51.1%	  	 	 	  	 	-    	  	 	 	(142	) 	 	 	0.0%	  	

Stabilized Total	  	 	18,151	  	 	 	20,433	  	 	 	88.8%	  	 	 	  	 	18,192	  	 	 	20,287	  	 	 	89.7%	  	

 
(1) Calculated as leased square footage as of period end with the addition of square footage associated with uncommenced leases for spaces vacant as of period end, divided by total rentable square footage as of period end, expressed as a percentage.
(2) The square footage associated with leases with end of period expiration dates is included in the end of the period leased square footage.
(3) End of period leased square footage for 2011 includes short-term space leased on behalf of NASA in accordance with requirements stipulated under its lease to allow it to restructure its space at Two Independence Square in Washington, DC. As of September 30, 2011, the total short-term space amounts to approximately 63,000 square feet and it will be occupied until an estimated date of June 30, 2013.
(4) Excluding executed but not commenced leases for currently vacant spaces, comprising approximately 371,000 square feet, Piedmont’s economic occupancy (including tenants in free rent periods) as of September 30, 2011 was 84.7%.
(5) Dispositions completed during the previous twelve months are deducted from the previous period data and acquisitions completed during the previous twelve months are deducted from the current period data.
(6) For additional information on acquisitions/dispositions completed during the last year and value-add properties, please refer to pages 31 and 32, respectively.
 
23

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended September 30, 2011	 	

 	  	Square Feet	 	  	% of Total Signed
During Period	 	 	% of Rentable Square
Footage	 	 	% Change Cash
Rents  (2)	 	 	% Change Accrual
Rents  (3) (4)	 	

Leases executed for spaces vacant less than one year	  	 	788	  	  	 	87	% 	 	 	3.6	% 	 	 	(14.2	%) 	 	 	(6.8	%) 	
 	 	 	 	 	 	
Leases executed for spaces excluded from analysis (5)	  	 	119	  	  	 	13	% 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	
 	  	Nine Months Ended September 30, 2011	 	

 	  	Square Feet	 	  	% of Total Signed
During Period	 	 	% of Rentable
Square Footage	 	 	% Change Cash
Rents  (2)	 	 	% Change Accrual
Rents  (3) (4)	 	

Leases executed for spaces vacant less than one year	  	 	2,595	  	  	 	89	% 	 	 	11.9	% 	 	 	(0.6	%) 	 	 	4.2	% 	
 	 	 	 	 	 	
Leases executed for spaces excluded from analysis (5)	  	 	334	  	  	 	11	% 	 	 	 	 	 	 	 	 	 	 	 	 	

(1) The population analyzed consists of office leases executed during the period (retail leases as well as leases associated with storage spaces, management offices, industrial properties and unconsolidated joint venture assets were excluded from this analysis). Spaces that had been vacant for greater than one year were excluded from this analysis.
(2) For the purposes of this analysis, the cash rents last in effect for the previous leases were compared to the initial cash rents of the new leases in order to calculate the percentage change.
(3) For the purposes of this analysis, the accrual basis rents for the previous leases were compared to the accrual basis rents of the new leases in order to calculate the percentage change. For newly signed leases which have variations in accrual basis rents, whether because of known future expansions, contractions, lease expense recovery structure changes, or other similar reasons, the weighted average of such accrual basis rents is used for the purposes of this analysis.
(4) For leases under which a tenant may use, at its discretion, a portion of its tenant improvement allowance for expenses other than those related to improvements to its space, an assumption is made that the tenant elects to use any such portion of its tenant improvement allowance for improvements to its space prior to the commencement of its lease. This assumption is made based upon the historical tenant improvement allowance usage patterns of the Company’s tenants.
(5) Represents leases signed at our consolidated office assets that do not qualify for inclusion in the analysis primarily because the spaces for which the new leases were signed had been vacant for greater than one year. Leases signed with Piedmont entities are excluded from the analysis.
 
24

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

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

Vacant	  	$0	  	0.0	  	2,971	  	13.6	 	$0	  	0.0	  	N/A	
2011	  	14,288	  	2.4	  	425	  	1.9	 	22	  	0.0	  	0.2	
2012(2)	  	55,660	  	9.4	  	1,771	  	8.1	 	7,842	  	1.3	  	14.1	
2013	  	66,332	  	11.2	  	1,601	  	7.3	 	21,628	  	3.7	  	32.6	
2014	  	52,486	  	8.9	  	1,701	  	7.8	 	3,537	  	0.6	  	6.7	
2015	  	42,998	  	7.3	  	1,532	  	7.0	 	32	  	0.0	  	0.1	
2016	  	29,684	  	5.0	  	1,071	  	4.9	 	1,440	  	0.2	  	4.9	
2017	  	33,510	  	5.6	  	1,117	  	5.1	 	1,237	  	0.2	  	3.7	
2018	  	49,322	  	8.3	  	1,639	  	7.5	 	8,720	  	1.5	  	17.7	
2019	  	73,575	  	12.4	  	2,409	  	11.0	 	21,469	  	3.6	  	29.2	
2020	  	23,630	  	4.0	  	923	  	4.2	 	9,372	  	1.6	  	39.7	
2021	  	19,737	  	3.3	  	736	  	3.4	 	0	  	0.0	  	0.0	
2022	  	19,049	  	3.2	  	729	  	3.3	 	0	  	0.0	  	0.0	
2023	  	26,833	  	4.5	  	1,247	  	5.7	 	0	  	0.0	  	0.0	
2024	  	31,900	  	5.4	  	754	  	3.5	 	0	  	0.0	  	0.0	
Thereafter	  	53,898	  	9.1	  	1,213	  	5.7	 	28,955	  	4.9	  	53.7	

Total / Weighted Average	  	$592,902	  	100.0	  	21,839	  	100.0	 	$104,254	  	17.6	  	 	

(1) Annualized rental income associated with newly executed leases for currently occupied space is incorporated herein only at the expiration date for the current lease. Annualized rental income associated with such new leases is removed from the expiry year of the current lease and added to the expiry year of the new lease. These adjustments effectively incorporate known roll ups and roll downs into the expiration schedule.
(2) Leases and other revenue-producing agreements on a month-to-month basis, aggregating 31,094 square feet and Annualized Lease Revenue of $381,803, are assigned a lease expiration date of a year and a day beyond the period end date.
 
25

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	12/31/2011	  	12/31/2012	  	12/31/2013	  	12/31/2014	  	12/31/2015	

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

Atlanta	  	10	  	$211	  	67	  	$1,272	  	37	  	$980	  	28	  	$578	  	29	  	$508	
Austin	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	
Boston	  	0	  	0	  	7	  	339	  	0	  	31	  	27	  	1,884	  	133	  	2,610	
Central & South Florida	  	1	  	50	  	4	  	107	  	8	  	215	  	18	  	452	  	6	  	138	
Chicago	  	275	  	10,149	  	451	  	14,241	  	667	  	25,541	  	34	  	1,315	  	202	  	5,597	
Cleveland	  	0	  	0	  	112	  	1,808	  	14	  	340	  	0	  	0	  	0	  	0	
Dallas	  	10	  	229	  	107	  	2,682	  	10	  	248	  	41	  	983	  	284	  	6,131	
Denver	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	
Detroit	  	12	  	258	  	21	  	603	  	86	  	749	  	12	  	266	  	132	  	3,867	
Houston	  	15	  	351	  	11	  	346	  	0	  	0	  	0	  	0	  	0	  	0	
Los Angeles	  	2	  	74	  	27	  	1,030	  	81	  	2,810	  	5	  	1,186	  	424	  	15,116	
Minneapolis	  	90	  	2,900	  	26	  	812	  	45	  	1,446	  	807	  	22,704	  	98	  	3,393	
Nashville	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	
New York	  	9	  	376	  	497	  	17,169	  	24	  	1,024	  	102	  	4,268	  	66	  	2,428	
Philadelphia	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	
Phoenix	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	132	  	1,948	
Portland	  	0	  	0	  	147	  	2,023	  	0	  	0	  	74	  	1,106	  	0	  	0	
Washington, D.C.	  	1	  	66	  	294	  	13,737	  	629	  	30,382	  	553	  	17,844	  	26	  	1,073	

Total / Weighted Average (2)	  	425	  	$14,664	  	1,771	  	$56,169	  	1,601	  	$63,766	  	1,701	  	$52,586	  	1,532	  	$42,809	

 
(1) Expiring lease revenue is calculated as expiring square footage multiplied by the gross rent per square foot of the tenant currently leasing the space.
(2) Total expiring lease revenue in any given year will not tie to the expiring Annualized Lease Revenue presented on the Lease Expiration Schedule as the Lease Expiration Schedule accounts for the revenue effects of newly signed leases. Reflected herein are expiring revenues based on in place rental rates.
 
26

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

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	
 	 	 	  	For the Three Months Ended	 	  	 	 	
 	 	 	  	 	 	 	  	 	 	 	
 	 	 	  	          9/30/2011          	 	  	6/30/2011          	 	  	3/31/2011          	 	  	12/31/2010          	 	  	9/30/2010          	 	  	 	 	 	 	
 	 	 	  	 	 	 	  	 	 	 	 	 	
 	 	Non-incremental	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	
 	 	 
Bldg / construction / dev	  	 	$1,063	  	  	 	$1,315	  	  	 	$1,484	  	  	 	$2,508	  	  	 	$1,885	  	  	 	 	 	 	 	 	 	
 	 	Tenant improvements	  	 	5,930	  	  	 	7,367	  	  	 	7,567	  	  	 	15,614	  	  	 	2,222	  	  	 	 	 	 	 	 	 	 	
 	 	Leasing costs	  	 	8,545	  	  	 	4,667	  	  	 	8,080	  	  	 	4,597	  	  	 	3,916	  	  	 	 	 	 	 	 	 	 	 	
 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	
 	 	Total non-incremental	  	 	15,538 	  	  	 	13,349 	  	  	 	17,131 	  	  	 	22,719 	  	  	 	8,023 	  	  	 	 	 	 	 	 	 	 	 	 	 	
 	 	 
Incremental	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 
Bldg / construction / dev	  	 	1,646	  	  	 	983	  	  	 	1,173	  	  	 	1,747	  	  	 	824	  	  	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Tenant improvements	  	 	7,148	  	  	 	4,770	  	  	 	3,749	  	  	 	1,589	  	  	 	3,867	  	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Leasing costs	  	 	1,638	  	  	 	1,372	  	  	 	1,467	  	  	 	4,249	  	  	 	1,032	  	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Total incremental	  	 	10,432	  	  	 	7,125	  	  	 	6,389	  	  	 	7,585	  	  	 	5,723 	  	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

 	 	Total capital expenditures	  	 	$25,970	  	  	 	$20,474	  	  	 	$23,520	  	  	 	$30,304	  	  	 	$13,746 	  	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

 	 	Tenant improvement commitments (1)	  	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 
Tenant improvement commitments outstanding as of June 30, 2011	  	  	 	 	 	  	 	$128,929	  	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	New tenant improvement commitments related to leases executed during period	  	  	 	 	 	  	 	30,998	  	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	  Tenant improvement expenditures	  	  	 	(13,078)	  	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	  Less: Tenant improvement expenditures fulfilled through accrued liabilities already presented on Piedmont’s balance sheet, expired commitments or other adjustments	   	  	 	(1,562)	  	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Tenant improvement commitments fulfilled, expired or other adjustments	  	  	 	 	 	  	 	(14,640)	  	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Total as of September 30, 2011 (2)	  	  	 	 	 	  	 	            $145,287 	  	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

 
 
NOTE: The information presented on this page is for all consolidated assets, inclusive of our industrial properties. During the third quarter of 2011, Piedmont revised its definitions of incremental and non-incremental capital expenditures in order to conform with the more broadly accepted definitions for such terms by other office REITs. Capital expenditures have been restated for all prior periods in order to provide a consistent basis for comparison. Our revised definition of these measures can be found on pages 34 and 35.
(1) Commitments are unexpired contractual tenant improvement obligations for leases executed in current and prior periods that have not yet been incurred and have not otherwise been presented on Piedmont’s financial statements. The four largest commitments total approximately $75.0 million, or 52% of total outstanding commitments.
(2) Of the total tenant improvement commitments outstanding, approximately $128 million will be classified as non-incremental capital expenditures when incurred. The total tenant improvement commitments outstanding includes $34.6 million related to one held-for-sale asset, 35 West Wacker Drive. If amounts attributable to 35 West Wacker Drive were excluded, total outstanding tenant improvement commitments as of September 30, 2011, would be $110.7 million, of which $92.3 million would be classified as non-incremental capital expenditures when incurred.
 
27

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	 	 	  	 	  	  	For the Year Ended	
 	  	 	 	For the Three Months Ended    
September 30,  2011    	 	For the Nine Months Ended    
September 30,  2011    	  	2010	  	2009	 	2008	
Renewal Leases	 	 	 	 	  	 	  	 	 	 	
 	  	 
Number of leases	 	17	 	38	  	37	  	34	 	34	
 	  	Square feet	 	565,565	 	1,921,948	  	1,241,481	  	1,568,895	 	967,959	
 	  	 
Tenant improvements per square foot (1)	 	$17.15	 	$25.93	  	$14.40	  	$12.01	 	$8.28	
 	  	Leasing commissions per square foot	 	$8.17	 	$7.74	  	$8.40	  	$5.51	 	$7.17	
 	  	Total per square foot	 	$25.32	 	$33.67	  	$22.80	  	$17.52	 	$15.45	
 	 	 	 	 	 	 	
 	  	Tenant improvements per square foot per year of lease term	 	$2.89	 	$3.46	  	$1.74	  	$1.44	 	$1.39	
 	  	Leasing commissions per square foot per year of lease term	 	$1.38	 	$1.03	  	$1.02	  	$0.66	 	$1.20	
 	  	Total per square foot per year of lease term	 	$4.27	 	$4.49	  	$2.76	  	$2.10	 	$2.59	
 	 	 	 	 	 	
  New Leases	 	 	 	 	  	 	  	 	 	 	
 	  	 
Number of leases	 	15	 	53	  	56	  	28	 	37	
 	  	Square feet	 	341,815	 	1,007,625	  	866,212	  	700,295	 	747,919	
 	  	 
Tenant improvements per square foot (1)	 	$61.84	 	$42.08	  	$32.65	  	$45.04	 	$30.59	
 	  	Leasing commissions per square foot	 	$19.89	 	$14.73	  	$11.28	  	$17.12	 	$15.95	
 	  	Total per square foot	 	$81.73	 	$56.81	  	$43.93	  	$62.16	 	$46.54	
 	 	 	 	 	 	 	
 	  	Tenant improvements per square foot per year of lease term	 	$5.31	 	$4.53	  	$4.16	  	$4.05	 	$3.24	
 	  	Leasing commissions per square foot per year of lease term	 	$1.71	 	$1.59	  	$1.44	  	$1.54	 	$1.69	
 	  	Total per square foot per year of lease term	 	$7.02	 	$6.12	  	$5.60	  	$5.59	 	$4.93	
 	 	 	 	 	 	
  Total	 	 	 	 	  	 	  	 	 	 	
 	  	 
Number of leases	 	32	 	91	  	93	  	62	 	71	
 	  	Square feet	 	907,380	 	2,929,573	  	2,107,693    	  	    2,269,190  	 	    1,715,878    	
 	  	 
Tenant improvements per square foot (1)	 	$33.99	 	$31.49	  	$21.90	  	$22.21	 	$18.01	
 	  	Leasing commissions per square foot	 	$12.59	 	$10.14	  	$9.59	  	$9.09	 	$11.00	
 	  	Total per square foot	 	$46.58	 	$41.63	  	$31.49	  	$31.30	 	$29.01	
 	 	 	 	 	 	 	
 	  	Tenant improvements per square foot per year of lease term	 	$4.20	 	$3.88	  	$2.70	  	$2.42	 	$2.41	
 	  	Leasing commissions per square foot per year of lease term	 	$1.56	 	$1.25	  	$1.18	  	$0.99	 	$1.47	
 	  	Total per square foot per year of lease term	 	$5.76	 	$5.13	  	$3.88	  	$3.41	 	$3.88	
NOTE: This information is presented for our consolidated office assets only. Short-term leases (leases for a term of less than one year) are excluded from this information.
(1) For leases under which a tenant may use, at its discretion, a portion of its tenant improvement allowance for expenses other than those related to improvements to its space, an assumption is made that the tenant elects to use any such portion of its tenant improvement allowance for improvements to its space prior to the commencement of its lease. This assumption is made based upon the historical tenant improvement allowance usage patterns of the Company’s tenants.
 
28

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

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Location	  	Number of
Properties	  	  	  	Annualized Lease
Revenue ($’s in
thousands)	  	  	  	Percentage of
Annualized Lease
Revenue (%)	  	  	  	Rentable Square
Footage (in
Thousands)	  	  	  	Percentage of
Rentable Square
Footage (%)	  	  	  	Leased Square
Footage (in
thousands)	  	  	  	Percent Leased  
(%)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Chicago	  	7	  	 	  	$169,038	  	 	  	28.6	  	 	  	5,851	  	 	  	26.7	  	 	  	4,706	  	 	  	80.4	
Washington, D.C.	  	14	  	 	  	119,987	  	 	  	20.2	  	 	  	3,055	  	 	  	14.0	  	 	  	2,782	  	 	  	91.1	
New York	  	7	  	 	  	88,332	  	 	  	14.9	  	 	  	2,656	  	 	  	12.2	  	 	  	2,532	  	 	  	95.3	
Minneapolis	  	4	  	 	  	44,079	  	 	  	7.4	  	 	  	1,612	  	 	  	7.4	  	 	  	1,536	  	 	  	95.3	
Los Angeles	  	5	  	 	  	29,297	  	 	  	4.9	  	 	  	1,144	  	 	  	5.2	  	 	  	921	  	 	  	80.5	
Boston	  	6	  	 	  	25,634	  	 	  	4.3	  	 	  	1,023	  	 	  	4.7	  	 	  	1,002	  	 	  	97.9	
Dallas	  	7	  	 	  	23,321	  	 	  	3.9	  	 	  	1,276	  	 	  	5.8	  	 	  	1,101	  	 	  	86.3	
Detroit	  	4	  	 	  	17,836	  	 	  	3.0	  	 	  	930	  	 	  	4.3	  	 	  	809	  	 	  	87.0	
Atlanta	  	6	  	 	  	14,800	  	 	  	2.5	  	 	  	1,040	  	 	  	4.8	  	 	  	631	  	 	  	60.7	
Philadelphia	  	1	  	 	  	14,571	  	 	  	2.5	  	 	  	761	  	 	  	3.5	  	 	  	761	  	 	  	100.0	
Houston	  	2	  	 	  	10,497	  	 	  	1.8	  	 	  	463	  	 	  	2.1	  	 	  	341	  	 	  	73.7	
Nashville	  	1	  	 	  	7,125	  	 	  	1.2	  	 	  	312	  	 	  	1.4	  	 	  	312	  	 	  	100.0	
Phoenix	  	4	  	 	  	7,018	  	 	  	1.2	  	 	  	554	  	 	  	2.5	  	 	  	344	  	 	  	62.1	
Central & South Florida	  	3	  	 	  	5,419	  	 	  	0.9	  	 	  	299	  	 	  	1.4	  	 	  	240	  	 	  	80.3	
Austin	  	1	  	 	  	5,846	  	 	  	1.0	  	 	  	195	  	 	  	0.9	  	 	  	195	  	 	  	100.0	
Portland	  	4	  	 	  	4,232	  	 	  	0.7	  	 	  	325	  	 	  	1.5	  	 	  	325	  	 	  	100.0	
Cleveland	  	2	  	 	  	3,158	  	 	  	0.5	  	 	  	187	  	 	  	0.9	  	 	  	175	  	 	  	93.6	
Denver	  	1	  	 	  	2,712	  	 	  	0.5	  	 	  	156	  	 	  	0.7	  	 	  	156	  	 	  	100.0	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total / Weighted Average	  	79	  	 	  	$592,902	  	 	  	100.0	  	 	  	21,839	  	 	  	100.0	  	 	  	18,869	  	 	  	86.4	

 	

29

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

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

Governmental Entity	 	7	 	1.6	 	$104,254	 	17.6	 	2,400	 	12.7	
Business Services	 	64	 	14.8	 	63,190	 	10.7	 	1,992	 	10.6	
Depository Institutions	 	13	 	3.0	 	49,426	 	8.3	 	1,712	 	9.1	
Legal Services	 	11	 	2.5	 	36,575	 	6.2	 	1,026	 	5.4	
Nondepository Credit Institutions	 	13	 	3.0	 	31,367	 	5.3	 	1,096	 	5.8	
Petroleum Refining & Related Industries	 	1	 	0.2	 	31,289	 	5.3	 	776	 	4.1	
Insurance Carriers	 	20	 	4.6	 	26,630	 	4.5	 	1,234	 	6.5	
Chemicals & Allied Products	 	8	 	1.8	 	22,678	 	3.8	 	669	 	3.5	
Engineering, Accounting, Research, Management & Related Services	 	28	 	6.5	 	22,076	 	3.7	 	682	 	3.6	
Insurance Agents, Brokers & Services	 	9	 	2.1	 	18,432	 	3.1	 	601	 	3.2	
Communications	 	35	 	8.1	 	17,745	 	3.0	 	599	 	3.2	
Security & Commodity Brokers, Dealers, Exchanges & Services	 	22	 	5.1	 	15,680	 	2.6	 	561	 	3.0	
Educational Services	 	9	 	2.1	 	15,536	 	2.6	 	434	 	2.3	
Food & Kindred Products	 	6	 	1.4	 	15,061	 	2.5	 	428	 	2.3	
Transportation Equipment	 	4	 	0.9	 	13,640	 	2.3	 	520	 	2.8	
Other	 	183	 	42.3	 	109,323	 	18.5	 	4,139	 	21.9	
 	
Total	 	433	 	100.0	 	$592,902	 	100.0	 	18,869	 	100.0	

 
30

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Acquisitions	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	
Property Name	 	Location	 	  Acquisition  
Date	 	Percent
  Ownership  
(%)	 	  Year Built  	 	Purchase
  Price ($’s in  
thousands)	 	Rentable
Square
  Footage (in  
thousands)	 	Percent
Leased at
  Acquisition  
(%)	
 	
Suwanee Gateway One	 	Suwanee, GA	 	9/28/2010	 	100	 	2008	 	$7,875	 	142	 	0	
Meridian Crossings	 	Richfield, MN	 	10/1/2010	 	100	 	1997-1998	 	65,611	 	384	 	96	
1200 Enclave Parkway	 	Houston, TX	 	3/30/2011	 	100	 	1999	 	18,500	 	150	 	18	
500 West Monroe Street (1)	 	Chicago, IL	 	3/31/2011	 	100	 	1991	 	227,500	 	962	 	67	
The Dupree	 	Atlanta, GA	 	4/29/2011	 	100	 	1997	 	20,450	 	138	 	83	
The Medici	 	Atlanta, GA	 	6/7/2011	 	100	 	2008	 	13,210	 	152	 	22	
225 and 235 Presidential Way	 	Woburn, MA	 	9/13/2011	 	100	 	2000-2001	 	85,300	 	440	 	100	

 	 	 	 	 	 	 	 	 	 	$438,446	 	2,368	 	69	

Dispositions	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	
Property Name	 	Location	 	  Disposition  
Date	 	Percent
  Ownership  
(%)	 	  Year Built  	 	Sale Price ($’s
  in thousands)  	 	Rentable
Square
Footage (in
  thousands)  	 	Percent
Leased at
  Disposition  
(%)	
 	
111 Sylvan Avenue	 	Englewood Cliffs, NJ	 	12/8/2010	 	100	 	1953-1967	 	$55,000	 	410	 	100	
14400 Hertz Quail Springs Parkway	 	Oklahoma City, OK	 	10/15/2010	 	4	 	1997	 	5,300	 	57	 	100	
360 Interlocken Boulevard	 	Broomfield, CO	 	6/2/2011	 	4	 	1996	 	9,150	 	52	 	100	
Eastpointe Corporate Center	 	Issaquah, WA	 	7/1/2011	 	100	 	2001	 	32,000	 	156	 	19	
47300 Kato Road	 	Fremont, CA	 	8/25/2011	 	78	 	1982	 	3,825	 	58	 	0	
5000 Corporate Court	 	Holtsville, NY	 	8/31/2011	 	100	 	2000	 	39,250	 	264	 	82	

 	 	 	 	 	 	 	 	 	 	$144,525	 	997	 	77	
 	 	 	 	 	 	 	 	 	 	 	
(1) Investment in this property was converted from a structured finance investment to an owned real estate asset through a UCC foreclosure of an equity ownership interest on March 31, 2011. The purchase price presented equates to the book basis for the real estate assets comprising the property.
 
31

Piedmont Office Realty Trust, Inc.
Value-Add Activity
As of September 30, 2011

Presented below are properties that were acquired employing a value-add strategy. Once a property acquired under a value-add strategy reaches 80% leased, it is deemed stabilized for the purposes of supplemental reporting and will be removed from the value-add classification.

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

 	 	 	 	 	 	 	 	 	 	$267,085	 	1,406	 	51	 	50	
 	 	 	 	 	 	 	 	 	 	 	
(1) Property was acquired through the foreclosure of an equity ownership interest. While 67% leased at acquisition, the asset had near-term lease expirations comprising approximately 50% of the building’s rentable square footage.
 
32

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

 	 	Hoffman Estates, IL	 	Hoffman Estates, IL	 	Hoffman Estates, IL	 	Hoffman Estates, IL	 	Hoffman Estates, IL	 	Hoffman Estates, IL	 	Hoffman Estates, IL	
Industrial Properties	  	  Location  	  	Percent
  Ownership  
(%)	  	  Year Built  	  	 	  	Real Estate
Net Book
  Value ($’s in  
thousands)	  	  Rentable Square  
Footage (in
thousands)	  	Percent
  Leased (%)  	
 	
112 Hidden Lake Circle	  	Duncan, SC	  	100	  	1987	  	 	  	$9,680	  	313.4	  	100	
110 Hidden Lake Circle	  	Duncan, SC	  	100	  	1987	  	 	  	12,952	  	473.4	  	37	
 	  	 	  	 	  	 	  	 	  	 	
 	  	 	  	 	  	 	  	 	  	$22,632	  	786.8	  	62	

Unconsolidated Joint Venture Properties	  	  Location  	  	Percent
Ownership
(%)	  	Year Built	  	Piedmont
Share of Real
Estate Net
Book Value
($’s in
thousands)	  	Real Estate
Net Book
Value ($’s in
thousands)	  	Rentable Square
Footage (in
thousands)	  	Percent
Leased (%)	
 	
20/20 Building	  	Leawood, KS	  	57	  	1992	  	2,493	  	4,393	  	68.3	  	91	
4685 Investment Drive	  	Troy, MI	  	55	  	2000	  	5,177	  	9,412	  	77.1	  	100	
5301 Maryland Way	  	Brentwood, TN	  	55	  	1989	  	10,855	  	19,733	  	201.2	  	100	
8560 Upland Drive	  	Parker, CO	  	72	  	2001	  	7,535	  	10,481	  	148.2	  	100	
Two Park Center	  	Hoffman Estates, IL	  	72	  	1999	  	11,315	  	15,739	  	193.7	  	39	
 	  	 	  	 	  	 	  	 	
 	  	 	  	 	  	 	  	$37,375	  	$59,758	  	688.5	  	82	

Land Parcels	  	Location	  	 	  	 	  	 	  	 	  	Acres	  	 	
 	
Portland Land Parcels	  	Beaverton, OR	  	 	  	 	  	 	  	 	  	18.2	  	 	
Enclave Parkway	  	Houston, TX	  	 	  	 	  	 	  	 	  	4.5	  	 	
Durham Avenue	  	South Plainfield, NJ	  	 	  	 	  	 	  	 	  	8.9	  	 	
State Highway 161	  	Irving, TX	  	 	  	 	  	 	  	 	  	4.5	  	 	
 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	
 	  	 	  	 	  	 	  	 	  	 	  	36.1	  	 	

33

 	
Piedmont Office Realty Trust, Inc.
Supplemental Definitions
 
Included in this section are management’s statements regarding certain non-GAAP financial measures provided in this supplemental report and reasons why management believes that these measures provide useful information to investors about the Company’s financial condition and results of operations. Reconciliations of these non-GAAP measures are included within pages 37-39.
 
Adjusted Funds From Operations (“AFFO”): AFFO is calculated by deducting from Core FFO non-incremental capital expenditures and adding back non-cash items including non-real estate depreciation, straight lined rents and fair value lease revenue, non-cash components of interest expense and compensation expense, and by making similar adjustments for unconsolidated partnerships and joint ventures. Although AFFO may not be comparable to that of other REITs, we believe it provides a meaningful indicator of our ability to fund cash needs and to make cash distributions to equity owners. AFFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating performance to net income, as an alternative to net cash flows from operating activities or as a measure of our liquidity.
 
Annualized Lease Revenue (“ALR”): ALR is calculated by multiplying (i) rental payments (defined as base rent plus operating expense reimbursements, if payable by the tenant on a monthly basis under the terms of a lease that have been executed, but excluding a) rental abatements and b) rental payments related to executed but not commenced leases for space that was covered by an existing lease), by (ii) 12. In instances in which contractual rents or operating expense reimbursements are collected on an annual, semi-annual, or quarterly basis, such amounts are multiplied by a factor of 1, 2, or 4, respectively, to calculate the annualized figure. For leases that have been executed but not commenced relating to un-leased space, ALR is calculated by multiplying (i) the monthly base rental payment (excluding abatements) plus any operating expense reimbursements for the initial month of the lease term, by (ii) 12. Unless stated otherwise, this measure excludes our industrial properties and unconsolidated joint venture interests.
 
Core EBITDA: Core EBITDA is defined as net income before interest, taxes, depreciation and amortization and incrementally removing any impairment losses, gains or losses from sales of property, or other extraordinary items. We do not include impairment losses in this measure because we feel these types of losses create volatility in our earnings and make it difficult to determine the earnings generated by our ongoing business. We believe Core EBITDA is a reasonable measure of our liquidity. Core EBITDA is a non-GAAP financial measure and should not be viewed as an alternative measurement of cash flows from operating activities or other GAAP basis liquidity measures. Other REITs may calculate Core EBITDA differently and our calculation should not be compared to that of other REITs.
 
Core Funds From Operations (“Core FFO”): We calculate Core FFO by starting with FFO, as defined by NAREIT, and adjusting for certain non-recurring items such as impairment losses and other extraordinary items. Such items create significant earnings volatility. We believe Core FFO provides a meaningful measure of our operating performance and more predictability regarding future earnings potential. Core FFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating performance to net income; therefore, it should not be compared to other REITs’ equivalent to Core FFO.
 
Core Net Operating Income (“Core NOI”): Core NOI is defined as real estate operating income with the add-back of corporate general and administrative expense, depreciation and amortization, and casualty and impairment losses and the deduction of income and expense associated with lease terminations and income associated with property management performed by Piedmont for other organizations. We present this measure on an accrual basis and a cash basis, which eliminates the effects of straight lined rents and fair value lease revenue. The company uses this measure to assess its operating results and believes it is important in assessing operating performance. Core NOI is a non-GAAP measure which does not have any standard meaning prescribed by GAAP and therefore may not be comparable to similar measures presented by other companies.
 
EBITDA: EBITDA is defined as net income before interest, taxes, depreciation and amortization. We believe EBITDA is an appropriate measure of our ability to incur and service debt. EBITDA should not be considered as an alternative to cash flows from operating activities, as a measure of our liquidity or as an alternative to net income as an indicator of our operating activities. Other REITs may calculate EBITDA differently and our calculation should not be compared to that of other REITs.
 
Funds From Operations (“FFO”): FFO is calculated in accordance with the current National Association of Real Estate Investment Trusts (“NAREIT”) definition. NAREIT currently defines FFO as net income (computed in accordance with GAAP), excluding gains or losses from sales of property, adding back depreciation and amortization on real estate assets, and after the same adjustments for unconsolidated partnerships and joint ventures. Such factors can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates. FFO may provide valuable comparisons of operating performance between periods and with other REITs. FFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating performance to net income. We believe that FFO is a beneficial indicator of the performance of an equity REIT. However, other REITs may not define FFO in accordance with the NAREIT definition, or may interpret the current NAREIT definition differently than we do; therefore, our computation of FFO may not be comparable to that of such other REITs.
 
Incremental Capital Expenditures: Incremental Capital Expenditures are defined as capital expenditures of a non-recurring nature that incrementally enhance the underlying assets’ income generating capacity. Tenant improvements, leasing commissions, building capital and deferred lease incentives (“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.	
 
34

Piedmont Office Realty Trust, Inc.
Supplemental Definitions

 
 	
NOI from Unconsolidated Joint Ventures: NOI from Unconsolidated Joint Ventures is defined as Core NOI attributable to our interests in eight properties owned through unconsolidated partnerships. We present this measure on an accrual basis and a cash basis, which eliminates the effects of straight lined rents and fair value lease revenue. NOI from Unconsolidated Joint Ventures is a non-GAAP measure and therefore may not be comparable to similarly defined data provided by other REITs.
 
Non-Incremental Capital Expenditures: Non-Incremental Capital Expenditures are defined as capital expenditures of a recurring nature related to tenant improvements and leasing commissions that do not incrementally enhance the underlying assets’ income generating capacity. We exclude first generation tenant improvements and leasing commissions from this measure, in addition to other capital expenditures that qualify as Incremental Capital Expenditures, as defined above.
 
Same Store Net Operating Income (“Same Store NOI”): Same Store NOI is calculated as the Core NOI attributable to the properties owned or placed in service during the entire span of the current and prior year reporting periods. Same Store NOI excludes amounts attributable to industrial properties and unconsolidated joint venture assets. We present this measure on an accrual basis and a cash basis, which eliminates the effects of straight lined rents and fair value lease revenue. We believe Same Store NOI is an important measure of comparison of our stabilized properties’ operating performance. Other REITs may calculate Same Store NOI differently and our calculation should not be compared to that of other REITs.
 
Same Store Properties: Same Store Properties is defined as properties owned or placed in service during the entire span of the current and prior year reporting periods. Same Store Properties excludes industrial properties and unconsolidated joint venture assets. We believe Same Store Properties is an important measure of comparison of our stabilized portfolio performance.	
 
35

Piedmont Office Realty Trust, Inc.
Research Coverage

 	 	 	 	 	 	 	
Paul E. Adornato, CFA	  	John W. Guinee, III	  	Brendan Maiorana	  	 	
BMO Capital Markets	  	Stifel, Nicolaus & Company	  	Wells Fargo	  	 	
3 Times Square, 26th Floor	  	One South Street	  	7 St. Paul Street	  	 	
New York, NY 10036	  	16th Floor	  	MAC R1230-011	  	 	
Phone: (212) 885-4170	  	Baltimore, MD 21202	  	Baltimore, MD 21202	  	 	
 	  	Phone: (443) 224-1307	  	Phone: (443) 263-6516	  	 	
 	 	 	 	
Paul Morgan	  	Anthony Paolone, CFA	  	David B. Rodgers, CFA	  	 	
Morgan Stanley	  	JP Morgan	  	RBC Capital Markets	  	 	
555 California Street, 21st Floor	  	277 Park Avenue	  	Arbor Court	  	 	
San Francisco, CA 94104
Phone: (415) 576-2627	  	New York, NY 10172
Phone: (212) 622-6682	  	30575 Bainbridge Road,
Suite 250	  	 	
 	  	 	  	Solon, OH 44139	  	 	
 	  	 	  	Phone: (440) 715-2647	  	 	
 	 	 	 	
Michael Knott, CFA	  	Stephen C. Swett	  	 	  	 	
Green Street Advisors	  	Morgan Keegan & Co.	  	 	  	 	
660 Newport Center Drive, Suite 800	  	535 Madison Avenue	  	 	  	 	
Newport Beach, CA 92660	  	10th Floor	  	 	  	 	
Phone: (949) 640-8780	  	New York, NY 10022	  	 	  	 	
 	  	Phone: (212) 508-7585	  	 	  	 	
 
36

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	 	 	 	Nine Months Ended	 	
 	 	    9/30/2011    	 	 	    6/30/2011    	 	 	    3/31/2011    	 	 	    12/31/2010    	 	 	    9/30/2010    	 	 	 	 	    9/30/2011    	 	 	    9/30/2010    	 	
 	 	 	 	 	 	 	 	 	
Net income attributable to Piedmont	 	$	51,026 	  	 	$	21,027 	  	 	$	33,967 	  	 	$	28,700 	  	 	$	40,584 	  	 	 	 	$	106,020 	  	 	$	91,679 	  	
 	 	 	 	 	 	 	 	 	
Depreciation	 	 	28,102 	  	 	 	27,879 	  	 	 	27,154 	  	 	 	26,821 	  	 	 	26,163 	  	 	 	 	 	83,135 	  	 	 	78,285 	  	
Amortization	 	 	16,616 	  	 	 	15,878 	  	 	 	12,106 	  	 	 	11,623 	  	 	 	11,119 	  	 	 	 	 	44,601 	  	 	 	33,712 	  	
(Gain) / loss on sale of properties	 	 	(26,826	) 	 	 	(45	) 	 	 	- 	  	 	 	792 	  	 	 	- 	  	 	 	 	 	(26,872	) 	 	 	- 	  	
(Gain) / loss on
consolidation of VIE	 	 	-    	  	 	 	388 	  	 	 	(1,920	) 	 	 	-     	  	 	 	-    	  	 	 	 	 	(1,532	) 	 	 	-    	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Funds from operations	 	 	68,918 	  	 	 	65,127 	  	 	 	71,307 	  	 	 	67,936 	  	 	 	77,866 	  	 	 	 	 	205,352 	  	 	 	203,676 	  	
 	 	 	 	 	 	 	 	 	
Acquisition costs	 	 	285 	  	 	 	716 	  	 	 	(26	) 	 	 	242 	  	 	 	310 	  	 	 	 	 	975 	  	 	 	358 	  	
Impairment loss	 	 	-	  	 	 	-	  	 	 	-	  	 	 	- 	  	 	 	53 	  	 	 	 	 	-	  	 	 	9,640 	  	

Core funds from operations	 	 	69,203 	  	 	 	65,843 	  	 	 	71,281 	  	 	 	68,178 	  	 	 	78,229 	  	 	 	 	 	206,327 	  	 	 	213,674 	  	
 	 	 	 	 	 	 	 	 	
Depreciation of non real estate assets	 	 	84 	  	 	 	168 	  	 	 	170 	  	 	 	173 	  	 	 	176 	  	 	 	 	 	422 	  	 	 	533 	  	
Stock-based and other non-cash
compensation expense	 	 	1,111 	  	 	 	896 	  	 	 	968 	  	 	 	1,223 	  	 	 	1,095 	  	 	 	 	 	2,975 	  	 	 	2,458 	  	
Deferred financing cost amortization	 	 	879 	  	 	 	1,060 	  	 	 	607 	  	 	 	608 	  	 	 	607 	  	 	 	 	 	2,546 	  	 	 	2,000 	  	
Amortization of fair market
adjustments on notes payable	 	 	471 	  	 	 	942 	  	 	 	- 	  	 	 	- 	  	 	 	- 	  	 	 	 	 	1,413 	  	 	 	- 	  	
Straight-line effects of lease revenue	 	 	(4,129	) 	 	 	(2,596	) 	 	 	2,237 	  	 	 	(3,456	) 	 	 	(2,921	) 	 	 	 	 	(4,488	) 	 	 	(2,632	) 	
Amortization of lease related intangibles	 	 	(1,817	) 	 	 	(1,670	) 	 	 	(1,362	) 	 	 	(1,331	) 	 	 	(1,510	) 	 	 	 	 	(4,850	) 	 	 	(4,461	) 	
Income from amortization of discount on purchase of mezzanine loans	 	 	-    	  	 	 	-    	  	 	 	(484	) 	 	 	(473	) 	 	 	(569	) 	 	 	 	 	(484	) 	 	 	(1,932	) 	
Acquisition costs	 	 	(285	) 	 	 	(716	) 	 	 	26	  	 	 	(242	) 	 	 	(310	) 	 	 	 	 	(975	) 	 	 	(358	) 	
 	 	 	 	 	 	 	 	 	
Non-incremental capital expenditures	 	 	(15,538	) 	 	 	(13,349	) 	 	 	(17,131	) 	 	 	(22,719	) 	 	 	(8,023	) 	 	 	 	 	(46,018	) 	 	 	(22,722	) 	

Adjusted funds from operations	 	$	49,979	  	 	$	50,578	  	 	$	56,312	  	 	$	41,961	  	 	$	66,774	  	 	 	 	$	156,868	  	 	$	186,560	  	

37

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	 	 	 	Nine Months Ended	 	
 	 	    9/30/2011    	 	 	    6/30/2011    	 	 	    3/31/2011    	 	 	    12/31/2010    	 	 	    9/30/2010    	 	 	 	 	    9/30/2011    	 	 	    9/30/2010    	 	
 	 	 	 	 	 	 	 	 	
Net income attributable to Piedmont	 	$	51,026  	  	 	$	21,027  	  	 	$	33,967  	  	 	$	28,700  	  	 	$	40,584  	  	 	 	 	$	106,020  	  	 	$	91,679  	  	
 	 	 	 	 	 	 	 	 	
Net income attributable to noncontrolling interest	 	 	135  	  	 	 	121  	  	 	 	123  	  	 	 	122  	  	 	 	158  	  	 	 	 	 	378  	  	 	 	409  	  	
Interest expense	 	 	17,804  	  	 	 	19,313  	  	 	 	17,174  	  	 	 	17,378  	  	 	 	17,359  	  	 	 	 	 	54,291  	  	 	 	55,383  	  	
Depreciation	 	 	28,186  	  	 	 	28,047  	  	 	 	27,324  	  	 	 	26,995  	  	 	 	26,339  	  	 	 	 	 	83,557  	  	 	 	78,818  	  	
Amortization	 	 	16,616  	  	 	 	15,878  	  	 	 	12,106  	  	 	 	11,623  	  	 	 	11,119  	  	 	 	 	 	44,601  	  	 	 	33,712  	  	
Impairment loss	 	 	-      	  	 	 	-      	  	 	 	-      	  	 	 	-      	  	 	 	53 	  	 	 	 	 	-      	  	 	 	9,640 	  	
(Gain) / loss on sale of properties	 	 	(26,826) 	  	 	 	(45) 	  	 	 	-      	  	 	 	792  	  	 	 	-      	  	 	 	 	 	(26,872) 	  	 	 	-      	  	
(Gain) / loss on consolidation of VIE	 	 	-      	  	 	 	388  	  	 	 	(1,920) 	  	 	 	-      	  	 	 	-      	  	 	 	 	 	(1,532) 	  	 	 	-      	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core EBITDA	 	 	86,941  	  	 	 	84,729  	  	 	 	88,774  	  	 	 	85,610  	  	 	 	95,612  	  	 	 	 	 	260,443  	  	 	 	269,641  	  	
 	 	 	 	 	 	 	 	 	
General & administrative expenses	 	 	4,747  	  	 	 	7,392  	  	 	 	6,704  	  	 	 	7,724  	  	 	 	6,806  	  	 	 	 	 	18,843  	  	 	 	21,129  	  	
Management fee revenue	 	 	(110) 	  	 	 	(363) 	  	 	 	(830) 	  	 	 	(948) 	  	 	 	(806) 	  	 	 	 	 	(1,303) 	  	 	 	(2,265) 	  	
Interest and other income	 	 	74  	  	 	 	253  	  	 	 	(3,460) 	  	 	 	(491) 	  	 	 	(993) 	  	 	 	 	 	(3,132) 	  	 	 	(2,998) 	  	
Lease termination income	 	 	33  	  	 	 	(1,347) 	  	 	 	(3,404) 	  	 	 	(2,589) 	  	 	 	(4,230) 	  	 	 	 	 	(4,718) 	  	 	 	(5,205) 	  	
Lease termination expense - straight line rent & acquisition intangibles write-offs	 	 	260  	  	 	 	43  	  	 	 	436  	  	 	 	461  	  	 	 	131  	  	 	 	 	 	739  	  	 	 	876  	  	
Straight-line effects of lease revenue	 	 	(4,296) 	  	 	 	(2,639) 	  	 	 	1,972  	  	 	 	(3,791) 	  	 	 	(3,053) 	  	 	 	 	 	(4,963) 	  	 	 	(3,508) 	  	
Net effect of amortization of above/(below) market in-place lease intangibles	 	 	(1,911) 	  	 	 	(1,670) 	  	 	 	(1,534) 	  	 	 	(1,457) 	  	 	 	(1,510) 	  	 	 	 	 	(5,115) 	  	 	 	(4,461) 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core net operating income	 	 	85,738  	  	 	 	86,398  	  	 	 	88,658  	  	 	 	84,519  	  	 	 	91,957  	  	 	 	 	 	260,794  	  	 	 	273,209  	  	
 	 	 	 	 	 	 	 	 	
Net operating income from:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Acquisitions	 	 	(3,400) 	  	 	 	(3,399) 	  	 	 	357  	  	 	 	918  	  	 	 	2  	  	 	 	 	 	(6,443) 	  	 	 	2  	  	
Dispositions	 	 	245  	  	 	 	(313) 	  	 	 	(261) 	  	 	 	(1,467) 	  	 	 	(2,554) 	  	 	 	 	 	(328) 	  	 	 	(8,028) 	  	
Industrial properties	 	 	(254) 	  	 	 	(242) 	  	 	 	(237) 	  	 	 	(346) 	  	 	 	(90) 	  	 	 	 	 	(733) 	  	 	 	(436) 	  	
Unconsolidated joint ventures	 	 	(818) 	  	 	 	(696) 	  	 	 	(658) 	  	 	 	(1,165) 	  	 	 	(1,217) 	  	 	 	 	 	(2,172) 	  	 	 	(3,670) 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Same Store NOI	 	$	81,511  	  	 	$	81,748  	  	 	$	87,859  	  	 	$	82,459  	  	 	$	88,098  	  	 	 	 	$	251,118  	  	 	$	261,077  	  	

38

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	 	 	  	Nine Months Ended	 	
 	  	 	 	 	 	 	  	 	 	 	
 	  	9/30/2011	 	 	6/30/2011	 	 	3/31/2011	 	  	12/31/2010	 	 	9/30/2010	 	 	 	  	9/30/2011	 	 	9/30/2010	 	
 	 	 	 	 	 	 	 	 	
Equity in Income of Unconsolidated JVs	  	  $	      485	  	 	$	        338	  	 	$	209	  	  	$	630	  	 	$	619	  	 	 	  	$	1,032	  	 	$	2,003	  	
 	 	 	 	 	 	 	 	 	
Interest expense	  	 	-  	  	 	 	-  	  	 	 	-  	  	  	 	-  	  	 	 	-  	  	 	 	  	 	-  	  	 	 	-  	  	
 	 	 	 	 	 	 	 	 	
Depreciation	  	 	296	  	 	 	300	  	 	 	302	  	  	 	310	  	 	 	329	  	 	 	  	 	897	  	 	 	1,014	  	
 	 	 	 	 	 	 	 	 	
Amortization	  	 	33	  	 	 	33	  	 	 	30	  	  	 	101	  	 	 	101	  	 	 	  	 	97	  	 	 	302	  	
 	 	 	 	 	 	 	 	 	
Impairment loss	  	 	- 	  	 	 	- 	  	 	 	- 	  	  	 	- 	  	 	 	53	  	 	 	  	 	- 	  	 	 	53	  	
 	 	 	 	 	 	 	 	 	
(Gain) / loss on sale of properties	  	 	(71	) 	 	 	(45	) 	 	 	- 	  	  	 	(25	) 	 	 	- 	  	 	 	  	 	(116	) 	 	 	- 	  	

Core EBITDA	  	 	743	  	 	 	626	  	 	 	541	  	  	 	1,016	  	 	 	1,102	  	 	 	  	 	1,910	  	 	 	3,372	  	
 	 	 	 	 	 	 	 	 	
General & administrative expenses	  	 	29	  	 	 	27	  	 	 	75	  	  	 	73	  	 	 	40	  	 	 	  	 	131	  	 	 	145	  	
 	 	 	 	 	 	 	 	 	
Interest and other income	  	 	(1	) 	 	 	- 	  	 	 	- 	  	  	 	- 	  	 	 	- 	  	 	 	  	 	(1	) 	 	 	- 	  	

Core net operating income (accrual basis)	  	 	771	  	 	 	653	  	 	 	616	  	  	 	1,089	  	 	 	1,142	  	 	 	  	 	2,040	  	 	 	3,517	  	
 	 	 	 	 	 	 	 	 	
Straight-line effects of lease revenue	  	 	47	  	 	 	43	  	 	 	42	  	  	 	77	  	 	 	76	  	 	 	  	 	132	  	 	 	157	  	
 	 	 	 	 	 	 	 	 	
Net effect of amortization of above/(below) market in-place lease intangibles	  	 	- 	  	 	 	- 	  	 	 	- 	  	  	 	(1	) 	 	 	(1	) 	 	 	  	 	- 	  	 	 	(4	) 	

Core net operating income (cash basis)	  	  $
	        818
	  
	 	  $	        696	  	 	  $	        658	  	  	  $	        1,165	  	 	  $	        1,217	  	 	 	  	  $	        2,172	  	 	  $	        3,670	  	

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

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

Revenues:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental income	 	  $	          7,477	  	 	$	          8,586	  	 	$	          8,568	  	 	$	          9,704	  	 	$	          10,273	  	 	 	 	$	          24,631	  	 	$	          30,455	  	
Tenant reimbursements	 	 	3,565	  	 	 	5,321	  	 	 	5,416	  	 	 	6,302	  	 	 	2,708	  	 	 	 	 	14,303	  	 	 	14,046	  	
Property management fee revenue	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-     	  	 	 	 	 	-    	  	 	 	-    	  	
Other rental income	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	1,136	  	 	 	-     	  	 	 	 	 	-    	  	 	 	-    	  	
 	 	 	 	 	 	 	 	 	 	 	
Total revenues	 	 	11,042	  	 	 	13,907	  	 	 	13,984	  	 	 	17,142	  	 	 	12,981 	  	 	 	 	 	38,934	  	 	 	44,501	  	
 	 	 	 	 	 	 	 	 	
Operating expenses:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property operating costs	 	 	3,403	  	 	 	6,164	  	 	 	6,144	  	 	 	7,161	  	 	 	2,395 	  	 	 	 	 	15,712	  	 	 	14,637	  	
Depreciation	 	 	1,516	  	 	 	1,686	  	 	 	1,710	  	 	 	1,673	  	 	 	1,694 	  	 	 	 	 	4,912	  	 	 	5,541	  	
Amortization	 	 	1,676	  	 	 	1,709	  	 	 	1,708	  	 	 	1,717	  	 	 	1,716 	  	 	 	 	 	5,093	  	 	 	5,193	  	
General and administrative	 	 	45	  	 	 	21	  	 	 	14	  	 	 	54	  	 	 	171	  	 	 	 	 	80	  	 	 	195 	  	
 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses	 	 	6,640 	  	 	 	9,580 	  	 	 	9,576 	  	 	 	10,605 	  	 	 	5,976 	  	 	 	 	 	25,797 	  	 	 	25,566 	  	
 	 	 	 	 	 	 	 	 	
Interest expense	 	 	(1,568	) 	 	 	(1,551	) 	 	 	(1,534	) 	 	 	(1,578	) 	 	 	(1,583	) 	 	 	 	 	(4,653	) 	 	 	(4,697	) 	
Interest and other income (expense)	 	 	16	  	 	 	(15	) 	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	 	 	1	  	 	 	2	  	
Net income attributable to noncontrolling interest	 	 	(131	) 	 	 	(116	) 	 	 	(119	) 	 	 	(118	) 	 	 	(154	) 	 	 	 	 	(366	) 	 	 	(397	) 	
 	 	 	 	 	 	 	 	 	 	 	
Total other income (expense)	 	 	(1,683	) 	 	 	(1,682	) 	 	 	(1,653	) 	 	 	(1,696	) 	 	 	(1,737	) 	 	 	 	 	(5,018	) 	 	 	(5,092	) 	
 	 	 	 	 	 	 	 	 	
 Operating income, excluding impairment loss and gain on sale	 	  $	          2,719	  	 	$	2,645	  	 	$	2,755	  	 	$	4,841	  	 	$	5,268	  	 	 	 	$	8,119	  	 	$	13,843	  	
 	 	 	 	 	 	 	 	 	
Impairment loss	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	 	 	-    	  	 	 	(9,587	) 	
Gain / (loss) on sale of properties	 	 	26,756	  	 	 	-    	  	 	 	-    	  	 	 	(817	) 	 	 	-    	  	 	 	 	 	26,756	  	 	 	-    	  	

Income from discontinued operations	 	  $	29,475	  	 	$	2,645	  	 	$	2,755	  	 	$	4,024 	  	 	$	5,268 	  	 	 	 	$	34,875	  	 	$	4,256 	  	

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

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