UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) August 1, 2012

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

 
 	 	 	 	 	
Maryland	 	001-34626	 	58-2328421	
(State or Other Jurisdiction
of Incorporation)	 	(Commission
File Number)	 	(IRS Employer
Identification No.)	
 	 	
11695 Johns Creek Parkway Ste 350, Johns Creek, Georgia	 	30097	
(Address of Principal Executive Offices)	 	(Zip Code)	
Registrant’s telephone number, including area code (770) 418-8800
(Former Name or Former Address, if Changed Since Last Report)

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

 

Item 2.02 Results of Operations and Financial Condition
On August 1, 2012, Piedmont Office Realty Trust, Inc. (the “Registrant”) issued a press release announcing its financial results for the second quarter 2012 and published supplemental information for the second quarter 2012 to its website. The press release and the supplemental information are attached hereto as Exhibit 99.1 and 99.2, respectively, and are incorporated herein by reference. Pursuant to the rules and regulations of the Securities and Exchange Commission, such exhibits and the information set forth therein are deemed to have been furnished and shall not be deemed to be “filed” under the Securities Exchange Act of 1934.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits:

Exhibit No.	  	Description	
 	 	
99.1	  	Press release dated August 1, 2012.	
 	 	
99.2	  	Piedmont Office Realty Trust, Inc. Quarterly Supplemental Information for the Second Quarter 2012.	
 
2

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

PIEDMONT OFFICE REALTY TRUST, INC.
(Registrant)	
 	 	
By:	 	/s/ Robert E. Bowers	
 	 	Robert E. Bowers	
 	 	Chief Financial Officer and Executive Vice President	
Date: August 1, 2012

3

EXHIBIT INDEX

Exhibit No.	  	Description	
 	 	
99.1	  	Press release dated August 1, 2012.	
 	 	
99.2	  	Piedmont Office Realty Trust, Inc. Quarterly Supplemental Information for the Second Quarter 2012.	
 
4

Exhibit 99.1
Piedmont Office Realty Trust Reports Second Quarter Results
ATLANTA, August 1, 2012—Piedmont Office Realty Trust, Inc. (“Piedmont” or the “Company”) (NYSE:PDM), an owner of Class A commercial office properties located predominantly in the ten largest U.S. office markets, today announced its results for the quarter ended June 30, 2012.
Highlights for the Three Months Ended June 30, 2012:
 
 	•	 	Achieved Funds From Operations (“FFO”) of $0.35 for the quarter;	
 
 	•	 	Continued to advance its portfolio refinement strategy by selling 26200 Enterprise Way in Lake Forest, CA at a gain of $10.0 million, or $0.06 per diluted share, and acquiring a two acre development site in Atlanta, GA;	
 
 	•	 	Completed approximately 600,000 square feet of total leasing during the quarter;	
 
 	•	 	Repurchased approximately 2.6 million shares of its common stock at an average price of $16.66 per share pursuant to the Company’s previously announced stock repurchase program.	
Donald A. Miller, CFA, President and Chief Executive Officer stated, “I am pleased with our results this quarter from both a financial and operational perspective. We achieved our internal expectations due to careful management of our expenses and made significant progress on the leasing front, including laying the groundwork which we believe will lead us to close some critical lease transactions during third quarter of 2012. I expect that leasing momentum, plus the commencement of several significant leases during the third quarter, will translate into improved leasing and occupancy metrics as we move into the second half of the year.”
Results for the Quarter ended June 30, 2012
Piedmont’s net income available to common stockholders for the second quarter of 2012, which includes the gain mentioned above, was $30.7 million, or $0.18 per diluted share, as compared with $21.0 million, or $0.12 per diluted share, for the second quarter of 2011. FFO was $60.3 million, or $0.35 per diluted share, for the quarter ended June 30, 2012 as compared to $65.1 million, or $0.38 per diluted share, for the quarter ended June 30, 2011, reflecting an anticipated $0.03 per quarter decrease in FFO contribution as a result of the sale of 35 W. Wacker during the fourth quarter of 2011, as well as downtime before certain major leases commence in the second half of 2012.
Adjusted FFO (“AFFO”) for the second quarter of 2012 totaled $36.2 million, or $0.21 per diluted share, as compared to $50.6 million, or $0.29 per diluted share, in the second quarter of 2011, reflecting the anticipated decrease noted above and increased capital expenditures during the current quarter as compared to the previous period associated with significant leasing activity, particularly at US Bancorp Center in Minneapolis, Aon Center in Chicago, and 200 Bridgewater in northern New Jersey.

Total revenues for the quarter ended June 30, 2012 were $133.7 million, as compared with $135.6 million for the same period a year ago, primarily reflecting additional rental revenues from properties acquired during the last twelve months offset by a $3.6 million reduction in tenant reimbursements and a $1.3 million reduction in lease termination revenue.
Property operating costs were $53.7 million in the second quarter of 2012 compared to $53.0 million in the second quarter of 2011, reflecting added operating costs from the acquisition of five properties over the last twelve months. General and administrative expense decreased $2.5 million as compared to the prior year’s second quarter primarily due to lower legal expense, lower costs associated with our deferred stock compensation plan, lower bad debt expense, and the recognition of a tax benefit associated with the refund of a prior period franchise tax in the current period.
The current quarter’s other expense when compared to the same quarter a year ago decreased approximately $2.6 million, primarily reflecting reduced interest expense as a result of the payoff of $230 million in secured notes over the past eight months.
Leasing Update
During the second quarter of 2012, the Company executed approximately 595,000 total square feet of leasing throughout its portfolio. Of the leases signed during the quarter, approximately 234,000 square feet, was renewal-related and 362,000 square feet, or 61%, was with new tenants. The same store stabilized portfolio was 87.9% leased as of June 30, 2012 as compared to 88.5% leased a year earlier, primarily reflecting negative net absorption associated with several recent large lease expirations. The Company’s overall office portfolio, including value add properties, was 85.0% leased as of June 30, 2012, with a weighted average lease term remaining of 6.5 years. Details outlining Piedmont’s upcoming lease expirations and the status of current leasing activity can be found in the Company’s quarterly supplemental information package.
Capital Markets, Financing and Other Activities
As previously announced, during the second quarter Piedmont completed the disposition of 26200 Enterprise Way, a two-story, approximately 145,000-square-foot office/flex building in Lake Forest, CA for $28.2 million, exclusive of closing costs. The disposition furthers the Company’s portfolio refinement strategy, and resulted in a gain of $10.0 million, or $0.06 per diluted share, which is included in Piedmont’s statement of operations for the quarter.
Additionally, believing that its common stock is trading at a discount to current net asset value, the Company repurchased approximately 2.6 million shares of its common stock during the quarter at an average price of $16.66 per share pursuant to its stock repurchase plan announced during fourth quarter 2011.

Piedmont is nearing completion of a new $500 unsecured million line of credit. The facility is anticipated to become fully executed in August of 2012 and will be a replacement for Piedmont’s current $500 million line that is due to mature on August 30, 2012.
Piedmont’s gross assets amounted to $5.2 billion as of June 30, 2012. Total debt was approximately $1.4 billion as of June 30, 2012 as compared to $1.5 billion as of December 31, 2011. The Company’s total debt-to-gross assets ratio was 26.7% as of June 30, 2012 as compared with 27.5% as of December 31, 2011, reflecting the payoff of two secured notes payable during 2012, including one for $45 million during the second quarter. As of June 30, 2012, Piedmont had cash and capacity on its unsecured line of credit of approximately $390.5 million.
Dividend
On August 1, 2012, the Board of Directors of Piedmont declared a dividend for the third quarter of 2012 in the amount of $0.20 per common share outstanding to stockholders of record as of the close of business on August 31, 2012. Such dividends are to be paid on September 21, 2012.
Guidance for 2012
Based on management’s expectations, the Company affirmed its financial guidance for full-year 2012 as follows:

 	 	Low	 	 	 	 	High	 	
 	 	 	 	
Core FFO	 	$	234	 	 	-  	 	$	250	 Million 	
 	 	 	 	
Core FFO per diluted share	 	$	1.35	  	 	-  	 	$	1.45	  	
These estimates reflect the effect of the disposition in December 2011 of the 100% leased 35 W. Wacker building in Chicago and management’s view of current market conditions and 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 Thursday, August 2, 2012 at 10:00 A.M. Eastern Daylight 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 396608. A replay of the conference call will be available until August 16, 2012, and can be accessed by dialing 1-877-870-5176 or 1-858-384-5517 for international participants, followed by pass code 396608. A webcast replay will also be available after the conference call in the Investor Relations section of the Company’s website. During the audio webcast and conference call, the Company’s management team will review second quarter 2012 performance, discuss recent events, and conduct a question-and-answer period.
Supplemental Information
Quarterly Supplemental Information as of and for the period ended June 30, 2012 can be accessed on the Company’s website under the Investor Relations section at www.piedmontreit.com.
About Piedmont Office Realty Trust
Piedmont Office Realty Trust, Inc. (NYSE:PDM) is a fully-integrated and self-managed real estate investment trust (REIT) specializing in high-quality, Class A office properties located primarily in the ten largest U.S. office markets, including Chicago, Washington, D.C., New York, Dallas, Los Angeles and Boston. As of June 30, 2012, Piedmont’s 74 wholly-owned office buildings were comprised of over 20 million rentable square feet. 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 transacting $5.9 billion and $1.7 billion in property acquisitions and dispositions, respectively, during its fourteen year operating history. For more information, see  www.piedmontreit.com .
Forward Looking Statements
Certain statements contained in this press release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company intends for all such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, as applicable. Such information is subject to certain risks and uncertainties, as well as known and unknown risks, which could cause actual results to differ

materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of the Company’s performance in future periods. Such forward-looking statements can generally be identified by the 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 anticipated leasing volumes for the remainder of 2012 and such volume’s impact on future leasing and occupancy metrics, the Company’s estimated range of Core FFO and Core FFO per diluted share for the year ending December 31, 2012, and the expected completion of a new $500 million line of credit.
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; the demand for office space, rental rates and property values may continue to lag the general economic recovery; our $500 million Unsecured Facility matures in August 2012 and a failure to renew this facility would cause our business, results of operation, cash flows, financial condition and access to capital to be adversely affected; 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; availability of financing including the Company’s ability to renew its $500 Million Unsecured Facility; costs of complying with governmental laws and regulations; uncertainties associated with environmental and other regulatory matters; potential changes in the political environment and reduction in federal and/or state funding of our government tenants; we are and may continue to be subject to litigation; the Company’s ability to continue to qualify as a REIT under the Internal Revenue Code; and other factors detailed in the Company’s most recent Annual Report on Form 10-K for the period ended December 31, 2011, and other documents the Company files with the Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company cannot guarantee the accuracy of any such forward-looking statements contained in this press release, and the Company does not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Research Analysts/ Institutional Investors Contact:
Eddie Guilbert
770-418-8592
research.analysts@piedmontreit.com
Shareholder Services/Transfer Agent Services Contact:
Computershare, Inc.
866-354-3485
Investor.services@piedmontreit.com

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

 
 	 	 	 	 	 	 	 	 	
 	  	June 30,
2012	 	 	December 31,
2011	 	
 	  	(unaudited)	 	 	 	 	
 	 	 	
Assets:	  	 	 	 	 	 	 	 	
Real estate assets, at cost:	  	 	 	 	 	 	 	 	
Land	  	$	629,476	  	 	$	640,196	  	
Buildings and improvements	  	 	3,754,954	  	 	 	3,759,596	  	
Buildings and improvements, accumulated depreciation	  	 	(837,285	) 	 	 	(792,342	) 	
Intangible lease asset	  	 	149,544	  	 	 	198,667	  	
Intangible lease asset, accumulated amortization	  	 	(82,742	) 	 	 	(119,419	) 	
Construction in progress	  	 	24,154	  	 	 	17,353	  	
 	  	 	 	 	 	 	 	 	
Total real estate assets	  	 	3,638,101	  	 	 	3,704,051	  	
 	 	 	
Investment in unconsolidated joint ventures	  	 	37,580	  	 	 	38,181	  	
Cash and cash equivalents	  	 	26,869	  	 	 	139,690	  	
Tenant receivables, net of allowance for doubtful accounts	  	 	22,884	  	 	 	24,722	  	
Straight line rent receivable	  	 	111,731	  	 	 	104,801	  	
Notes receivable	  	 	19,000	  	 	 	—  	  	
Due from unconsolidated joint ventures	  	 	569	  	 	 	788	  	
Restricted cash and escrows	  	 	48,046	  	 	 	9,039	  	
Prepaid expenses and other assets	  	 	7,385	  	 	 	9,911	  	
Goodwill	  	 	180,097	  	 	 	180,097	  	
Deferred financing costs, less accumulated amortization	  	 	4,597	  	 	 	5,977	  	
Deferred lease costs, less accumulated amortization	  	 	231,449	  	 	 	230,577	  	
 	  	 	 	 	 	 	 	 	
Total assets	  	$	4,328,308	  	 	$	4,447,834	  	

Liabilities:	  	 	 	 	 	 	 	 	
Line of credit and notes payable	  	$	1,400,525	  	 	$	1,472,525	  	
Accounts payable, accrued expenses, and accrued capital expenditures	  	 	126,207	  	 	 	122,986	  	
Deferred income	  	 	23,668	  	 	 	27,321	  	
Intangible lease liabilities, less accumulated amortization	  	 	44,246	  	 	 	49,037	  	
Interest rate swap	  	 	6,922	  	 	 	2,537	  	
 	  	 	 	 	 	 	 	 	
Total liabilities	  	 	1,601,568	  	 	 	1,674,406	  	
 	 	 	
Stockholders’ equity :	  	 	 	 	 	 	 	 	
Common stock	  	 	1,702	  	 	 	1,726	  	
Additional paid in capital	  	 	3,665,284	  	 	 	3,663,662	  	
Cumulative distributions in excess of earnings	  	 	(934,933	) 	 	 	(891,032	) 	
Other comprehensive loss	  	 	(6,922	) 	 	 	(2,537	) 	
 	  	 	 	 	 	 	 	 	
Piedmont stockholders’ equity	  	 	2,725,131	  	 	 	2,771,819	  	
Non-controlling interest	  	 	1,609	  	 	 	1,609	  	
 	  	 	 	 	 	 	 	 	
Total stockholders’ equity	  	 	2,726,740	  	 	 	2,773,428	  	
 	  	 	 	 	 	 	 	 	
Total liabilities and stockholders’ equity	  	$	4,328,308	  	 	$	4,447,834	  	

Net Debt (Debt less cash and cash equivalents and restricted cash and escrows)	  	$	1,325,610	  	 	$	1,323,796	  	
Total Gross Assets (1)	  	$	5,248,335	  	 	$	5,359,595	  	
 	 	 	
Number of shares of common stock outstanding at end of period	  	 	170,235	  	 	 	172,630	  	
 
(1) 	Total assets exclusive of accumulated depreciation and amortization related to real estate assets.	

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	 	Six Months Ended	 	
 	  	6/30/2012	 	 	6/30/2011	 	 	6/30/2012	 	 	6/30/2011	 	
 	 	 	 	 	
Revenues:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental income	  	$	105,992	  	 	$	103,205	  	 	$	211,275	  	 	$	203,035	  	
Tenant reimbursements	  	 	27,010	  	 	 	30,640	  	 	 	53,728	  	 	 	57,520	  	
Property management fee revenue	  	 	626	  	 	 	363	  	 	 	1,199	  	 	 	1,193	  	
Other rental income	  	 	88	  	 	 	1,347	  	 	 	212	  	 	 	4,751	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	133,716	  	 	 	135,555	  	 	 	266,414	  	 	 	266,499	  	
 	 	 	 	 	
Operating expenses:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property operating costs	  	 	53,699	  	 	 	52,950	  	 	 	106,442	  	 	 	101,743	  	
Depreciation	  	 	27,798	  	 	 	25,702	  	 	 	55,167	  	 	 	50,663	  	
Amortization	  	 	11,478	  	 	 	14,040	  	 	 	24,221	  	 	 	24,314	  	
General and administrative	  	 	4,865	  	 	 	7,342	  	 	 	10,122	  	 	 	13,954	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses	  	 	97,840	  	 	 	100,034	  	 	 	195,952	  	 	 	190,674	  	

Real estate operating income	  	 	35,876	  	 	 	35,521	  	 	 	70,462	  	 	 	75,825	  	
 	 	 	 	 	
Other income (expense):	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest expense	  	 	(15,943	) 	 	 	(17,762	) 	 	 	(32,480	) 	 	 	(33,402	) 	
Interest and other income (expense)	  	 	285	  	 	 	(238	) 	 	 	382	  	 	 	3,221	  	
Equity in income of unconsolidated joint ventures	  	 	246	  	 	 	338	  	 	 	416	  	 	 	547	  	
Gain on consolidation of a variable interest entity	  	 	—  	  	 	 	(388	) 	 	 	—  	  	 	 	1,532	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total other income (expense)	  	 	(15,412	) 	 	 	(18,050	) 	 	 	(31,682	) 	 	 	(28,102	) 	

Income from continuing operations	  	 	20,464	  	 	 	17,471	  	 	 	38,780	  	 	 	47,723	  	
 	 	 	 	 	
Discontinued operations :	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income	  	 	240	  	 	 	3,560	  	 	 	1,325	  	 	 	7,279	  	
Gain on sale of real estate assets	  	 	10,008	  	 	 	—  	  	 	 	27,838	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from discontinued operations	  	 	10,248	  	 	 	3,560	  	 	 	29,163	  	 	 	7,279	  	

Net income	  	 	30,712	  	 	 	21,031	  	 	 	67,943	  	 	 	55,002	  	
 	 	 	 	 	
Less: Net income attributable to noncontrolling interest	  	 	(4	) 	 	 	(4	) 	 	 	(8	) 	 	 	(8	) 	

Net income attributable to Piedmont	  	$	30,708	  	 	$	21,027	  	 	$	67,935	  	 	$	54,994	  	

Weighted average common shares outstanding — diluted	  	 	172,209	  	 	 	172,986	  	 	 	172,520	  	 	 	172,908	  	
 	 	 	 	 	
Per Share Information — diluted:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from continuing operations	  	$	0.12	  	 	$	0.10	  	 	$	0.22	  	 	$	0.28	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from discontinued operations	  	$	0.06	  	 	$	0.02	  	 	$	0.17	  	 	$	0.04	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income available to common stockholders	  	$	0.18	  	 	$	0.12	  	 	$	0.39	  	 	$	0.32	  	

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	 	Six Months Ended	 	
 	  	6/30/2012	 	 	6/30/2011	 	 	6/30/2012	 	 	6/30/2011	 	
 	 	 	 	 	
Net income attributable to Piedmont	  	$	30,708	  	 	$	21,027	  	 	$	67,935	  	 	$	54,994	  	
 	 	 	 	 	
Depreciation (1) (2)	  	 	28,033	  	 	 	27,879	  	 	 	55,842	  	 	 	55,033	  	
Amortization (1)	  	 	11,539	  	 	 	15,878	  	 	 	24,379	  	 	 	27,984	  	
Gain on sale of real estate assets (1)	  	 	(10,008	) 	 	 	(45	) 	 	 	(27,838	) 	 	 	(45	) 	
Gain on consolidation of variable interest entity	  	 	—  	  	 	 	388	  	 	 	—  	  	 	 	(1,532	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Funds from operations	  	 	60,272	  	 	 	65,127	  	 	 	120,318	  	 	 	136,434	  	
 	 	 	 	 	
Acquisition costs	  	 	84	  	 	 	716	  	 	 	81	  	 	 	690	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core funds from operations	  	 	60,356	  	 	 	65,843	  	 	 	120,399	  	 	 	137,124	  	
 	 	 	 	 	
Depreciation of non real estate assets	  	 	108	  	 	 	168	  	 	 	201	  	 	 	338	  	
Stock-based and other non-cash compensation expense	  	 	289	  	 	 	896	  	 	 	623	  	 	 	1,864	  	
Deferred financing cost amortization	  	 	590	  	 	 	2,002	  	 	 	1,392	  	 	 	2,609	  	
Straight-line effects of lease revenue (1)	  	 	(5,477	) 	 	 	(2,596	) 	 	 	(7,042	) 	 	 	(359	) 	
Net effect of amortization of below-market in-place lease
intangibles (1)	  	 	(1,785	) 	 	 	(1,670	) 	 	 	(3,316	) 	 	 	(3,033	) 	
Income from amortization of discount on purchase of mezzanine loans	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(484	) 	
Acquisition costs	  	 	(84	) 	 	 	(716	) 	 	 	(81	) 	 	 	(690	) 	
Non-incremental capital expenditures(3)	  	 	(17,781	) 	 	 	(13,349	) 	 	 	(25,847	) 	 	 	(30,480	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted funds from operations	  	$	36,216	  	 	$	50,578	  	 	$	86,329	  	 	$	106,889	  	

Weighted average common shares outstanding — diluted	  	 	172,209	  	 	 	172,986	  	 	 	172,520	  	 	 	172,908	  	
 	 	 	 	 	
Funds from operations per share (diluted)	  	$	0.35	  	 	$	0.38	  	 	$	0.70	  	 	$	0.79	  	
Core funds from operations per share (diluted)	  	$	0.35	  	 	$	0.38	  	 	$	0.70	  	 	$	0.79	  	
Adjusted funds from operations per share (diluted)	  	$	0.21	  	 	$	0.29	  	 	$	0.50	  	 	$	0.62	  	
 
(1)	Includes adjustments for wholly-owned properties, including discontinued operations, 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 and impairment losses, adding back depreciation and amortization on real estate assets, and after the same adjustments for unconsolidated partnerships and joint ventures. These adjustments can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates. FFO 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 gains or losses on the early extinguishment of debt, acquisition-related costs, 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.
Core EBITDA, Core Net Operating Income, Same Store Net Operating Income
Unaudited (in thousands)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	 	Six Months Ended	 	
 	  	6/30/2012	 	 	6/30/2011	 	 	6/30/2012	 	 	6/30/2011	 	
 	 	 	 	 	
Net income attributable to Piedmont	  	$	30,708	  	 	$	 21,027	  	 	$	67,935	  	 	$	54,994	  	
 	 	 	 	 	
Net income attributable to non-controlling interest	  	 	4	  	 	 	121	  	 	 	8	  	 	 	243	  	
Interest Expense	  	 	15,943	  	 	 	19,313	  	 	 	32,480	  	 	 	36,487	  	
Depreciation(1)	  	 	28,141	  	 	 	28,047	  	 	 	56,043	  	 	 	55,371	  	
Amortization(1)	  	 	11,539	  	 	 	15,878	  	 	 	24,379	  	 	 	27,984	  	
Gain on sale of real estate assets (1)	  	 	(10,008	) 	 	 	(45	) 	 	 	(27,838	) 	 	 	(45	) 	
Gain on consolidation of variable interest entity	  	 	—  	  	 	 	388	  	 	 	—  	  	 	 	(1,532	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core EBITDA*	  	 	76,327	  	 	 	84,729	  	 	 	153,007	  	 	 	173,502	  	
 	 	 	 	 	
General & administrative expenses(1)	  	 	4,866	  	 	 	7,392	  	 	 	10,184	  	 	 	14,096	  	
Management fee revenue	  	 	(626	) 	 	 	(363	) 	 	 	(1,199	) 	 	 	(1,193	) 	
Interest and other income	  	 	(305	) 	 	 	253	  	 	 	(403	) 	 	 	(3,206	) 	
Lease termination income	  	 	(88	) 	 	 	(1,347	) 	 	 	(212	) 	 	 	(4,751	) 	
Lease termination expense — straight line rent & acquisition intangibles write-offs	  	 	165	  	 	 	43	  	 	 	264	  	 	 	479	  	
Straight line rent adjustment(1)	  	 	(5,642	) 	 	 	(2,639	) 	 	 	(7,306	) 	 	 	(667	) 	
Net effect of amortization of below-market in-place lease intangibles(1)	  	 	(1,785	) 	 	 	(1,670	) 	 	 	(3,316	) 	 	 	(3,204	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core Net Operating Income (cash basis)*	  	 	72,912	  	 	 	86,398	  	 	 	151,019	  	 	 	175,056	  	
 	 	 	 	 	
Acquisitions	  	 	(3,886	) 	 	 	(3,446	) 	 	 	(7,036	) 	 	 	(3,444	) 	
Dispositions	  	 	(296	) 	 	 	(7,376	) 	 	 	(1,692	) 	 	 	(14,873	) 	
Industrial properties	  	 	(245	) 	 	 	(242	) 	 	 	(487	) 	 	 	(479	) 	
Unconsolidated joint ventures	  	 	(598	) 	 	 	(696	) 	 	 	(1,188	) 	 	 	(1,354	) 	

Same Store NOI*	  	$	67,887	  	 	$	74,638	  	 	$	140,616	  	 	$	154,906	  	

Change period over period in same store NOI	  	 	-9.0	% 	 	 	 	 	 	 	-9.2	% 	 	 	 	 	
 	 	 	 	 	
Fixed Charge Coverage Ratio (Core EBITDA/ Interest Expense) (2)	  	 	4.8	  	 	 	 	 	 	 	4.7	  	 	 	 	 	
Annualized Core EBITDA (Core EBITDA x 4)	  	$	305,308	  	 	 	 	 	 	$	306,014	  	 	 	 	 	
 
(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
June 30, 2012

 	 	 	 	 	
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	  	5-8	
Key Performance Indicators	  	9	
 	 	
Financials	  	 	
Balance Sheet	  	10	
Income Statements	  	11-12	
Funds From Operations / Adjusted Funds From Operations	  	13	
Same Store Analysis	  	14-15	
Capitalization Analysis	  	16	
Debt Summary	  	17	
Debt Detail	  	18	
Debt Analysis	  	19	
 	 	
Operational & Portfolio Information - Office Investments	  	 	
Tenant Diversification	  	20	
Tenant Credit Rating & Lease Distribution Information	  	21	
Leased Percentage Information	  	22	
Rental Rate Roll Up / Roll Down Analysis	  	23	
Lease Expiration Schedule	  	24	
Quarterly Lease Expirations	  	25	
Annual Lease Expirations	  	26	
Capital Expenditures & Commitments	  	27	
Contractual Tenant Improvements & Leasing Commissions	  	28	
Geographic Diversification	  	29	
Geographic Diversification by Location Type	  	30	
Industry Diversification	  	31	
Property Investment Activity	  	32	
Value-Add Activity	  	33	
 	 	
Other Investments	  	 	
Other Investments Detail	  	34	
 	 	
Supporting Information	  	 	
Definitions	  	35-36	
Research Coverage	  	37	
Non-GAAP Reconciliations & Other Detail	  	38-41	
Property Detail	  	42-43	
Risks, Uncertainties and Limitations	  	44	

Notice to Readers:
Please refer to page 44 for a discussion of important risks related to the business of Piedmont Office Realty Trust, Inc., as well as an investment in its securities, including risks that could cause actual results and events to differ materially from results and events referred to in the forward-looking information. Considering these risks, uncertainties, assumptions, and limitations, the forward-looking statements about leasing, financial operations, leasing prospects, etc. contained in this 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. When the Company sells properties, it restates historical income statements with the financial results of the sold assets presented in discontinued operations.

Piedmont Office Realty Trust, Inc.
Corporate Data

Piedmont Office Realty Trust, Inc. (also referred to herein as “Piedmont” or the “Company”) (NYSE: PDM) is 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. Approximately 82% of our Annualized Lease Revenue (“ALR”) (1)  is derived from our office properties located within the ten largest U.S. office markets, including Chicago, Washington, D.C., the New York metropolitan area, Boston and greater Los Angeles. Since its first acquisition in 1998, the Company has acquired $5.9 billion of office and industrial properties (inclusive of joint ventures) through June 30, 2012. Rated as an investment-grade company by Standard & Poor’s and Moody’s, Piedmont has maintained a low-leverage strategy while acquiring its properties.
This data supplements the information provided in our reports filed with the Securities and Exchange Commission and should be reviewed in conjunction with such filings.

 	  	As of
    June 30, 2012    	 	  	 	  	As of
    December 31, 2011    	 	
 	 	 	 	
Number of consolidated office properties (2)	  	 	74	  	  	 	  	 	79	  	
Rentable square footage (in thousands) (2)	  	 	20,482	  	  	 	  	 	20,942	  	
Percent leased (3)	  	 	85.0%	  	  	 	  	 	86.5%	  	
Percent leased - stabilized portfolio (4)	  	 	88.1%	  	  	 	  	 	89.1%	  	
Capitalization (in thousands):	  	 	 	 	  	 	  	 	 	 	
Total debt - principal amount outstanding	  	 	$1,400,525	  	  	 	  	 	$1,472,525	  	
Equity market capitalization (5)	  	 	$2,929,741	  	  	 	  	 	$2,941,611	  	
Total market capitalization (5)	  	 	$4,330,266	  	  	 	  	 	$4,414,136	  	
Total debt / Total market capitalization	  	 	32.3%	  	  	 	  	 	33.4%	  	
Total debt / Total gross assets	  	 	26.7%	  	  	 	  	 	27.5%	  	
Common stock data	  	 	 	 	  	 	  	 	 	 	
High closing price during quarter	  	 	$17.80	  	  	 	  	 	$17.50	  	
Low closing price during quarter	  	 	$16.19	  	  	 	  	 	$15.42	  	
Closing price of common stock at period end	  	 	$17.21	  	  	 	  	 	$17.04	  	
Weighted average fully diluted shares outstanding (in thousands) (6)	  	 	172,520	  	  	 	  	 	172,981	  	
Shares of common stock issued and outstanding (in thousands)	  	 	170,235	  	  	 	  	 	172,630	  	
Rating / outlook	  	 	 	 	  	 	  	 	 	 	
Standard & Poor’s	  	 	BBB / Stable	  	  	 	  	 	BBB / Stable	  	
Moody’s	  	 	Baa2 / Stable	  	  	 	  	 	Baa2 / Stable	  	
Employees	  	 	118	  	  	 	  	 	116	  	

 
(1)	The definition for Annualized Lease Revenue can be found on page 35.	
(2)	As of June 30, 2012, our consolidated office portfolio consisted of 74 properties (exclusive of our equity interests in five properties owned through unconsolidated joint ventures and our two industrial properties). During the first quarter of 2012, we sold our portfolio of assets in Portland, OR, comprised of four office properties totaling 326,000 square feet and developable land totaling 18.2 acres. During the second quarter of 2012, we sold 26200 Enterprise Way, a 145,000 square foot office building located in Lake Forest, CA, and we purchased approximately 2.0 acres of developable land in Atlanta, GA. For additional detail on asset transactions during 2012, please refer to page 32.	
(3)	Calculated as leased square footage on June 30, 2012 plus square footage associated with executed new leases for currently vacant spaces divided by total rentable square footage (defined in note 2 above), expressed as a percentage. This measure is presented for our 74 consolidated office properties and excludes industrial and unconsolidated joint venture properties. Please refer to page 22 for additional analyses regarding Piedmont’s leased percentage.	
(4)	Please refer to page 33 for information regarding value-add properties, data for which is removed from stabilized portfolio totals. The first six months of 2012 reflect the disposition of five well-leased properties totaling 470,000 square feet. Our dispositions of well-leased assets during the previous three quarters have resulted in a decrease in leased percentage; if those assets were not sold, our stabilized leased percentage would have been 88.9% as of June 30, 2012 as compared to 89.7% as of December 31, 2011.	
(5)	Based on a share price of $17.21 as of June 29, 2012.	
(6)	Weighted average fully diluted shares outstanding are presented on a year-to-date basis for each period.	
 
3

Piedmont Office Realty Trust, Inc.
Investor Information

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

 	 	 	
Donald A. Miller, CFA	  	Robert E. Bowers	  	Laura P. Moon	
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	  	Frank C. McDowell	  	Donald A. Miller, CFA	
Director, Chairman of the
Board of Directors and Chairman
of Audit Committee	  	Director and Vice Chairman of the
Board of Directors	  	Chief Executive Officer, President and
Director	
 	 	 	
Michael R. Buchanan	  	Wesley E. Cantrell	  	Donald S. Moss	
Director and Chairman of
Capital Committee	  	Director and Chairman of Governance
Committee	  	Director and Chairman of
Compensation Committee	
 	 	 	
William H. Keogler, Jr.	  	Raymond G. Milnes, Jr.	  	Jeffery L. Swope	
Director	  	Director	  	Director	

Transfer Agent	 	 	  	Corporate Counsel	
 	 	 	
Computershare	 	 	  	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 June 30, 2012

 
 	
Financial Results (1)                    	
- Funds from operations (FFO) for the quarter ended June 30, 2012 was $60.3 million, or $0.35 per share (diluted), compared to $65.1 million, or $0.38 per share (diluted), for the same quarter in 2011. FFO for the six months ended June 30, 2012 was $120.3 million, or $0.70 per share (diluted), compared to $136.4 million, or $0.79 per share (diluted), for the same period in 2011. The decrease in FFO for both the three months and the six months ended June 30, 2012 as compared to the same periods in 2011 was principally related to the following factors: 1) decreased operating income due to the disposition of certain assets with meaningful operating income contributions, notably 35 West Wacker Drive, offset somewhat by operating income contributions from newly acquired assets, 2) lower overall occupancy in 2012 as compared to 2011, and 3) reduced termination fee income of $1.3 million and $4.5 million, respectively, for the three and six months ended June 30, 2012 as compared to 2011. The reduction in FFO in 2012 as compared to 2011 was also offset somewhat by reduced General & Administrative expenses, related primarily to lower legal expense and lower deferred stock compensation expense, and reduced interest expense attributable to decreased total debt outstanding due to the repayment of several loans during the last twelve months.
 
- Core funds from operations (Core FFO) for the quarter ended June 30, 2012 was $60.4 million, or $0.35 per share (diluted), compared to $65.8 million, or $0.38 per share (diluted), for the same quarter in 2011. Core FFO for the six months ended June 30, 2012 was $120.4 million, or $0.70 per share (diluted), compared to $137.1 million, or $0.79 per share (diluted), for the same period in 2011. The decrease in Core FFO for the three months and the six months ended June 30, 2012 as compared to the same periods in 2011 was principally related to the items described for changes in FFO above.
 
- Adjusted funds from operations (AFFO) for the quarter ended June 30, 2012 was $36.2 million, or $0.21 per share (diluted), compared to $50.6 million, or $0.29 per share (diluted), for the same quarter in 2011. AFFO for the six months ended June 30, 2012 was $86.3 million, or $0.50 per share (diluted), compared to $106.9 million, or $0.62 per share (diluted), for the same period in 2011. The decrease in AFFO for the three months ended June 30, 2012 as compared to the same period in 2011 was primarily related to the items described above for the FFO variance, as well as increased rental abatements associated with newly commenced leases in 2012 as compared to 2011, and an increase in non-incremental capital expenditures in 2012 as compared to 2011. The decrease in AFFO for the six months ended June 30, 2012 as compared to the same period in 2011 was primarily related to the items described above for the FFO variance, as well as increased rental abatements associated with newly commenced leases in 2012 as compared to 2011, offset somewhat by a decrease in non-incremental capital expenditures in 2012 as compared to 2011.
 
- During the quarter ended June 30, 2012, the Company paid to shareholders a quarterly dividend in the amount of $0.20 per share for its common stock. The Company’s dividend payout percentage for the six months ended June 30, 2012 was 57.3% of Core FFO and 79.9% of AFFO.	
 	
Operations                                     	
- On a square footage leased basis, our total office portfolio was 85.0% leased as of June 30, 2012, as compared to 86.5% as of December 31, 2011 and 84.4% as of March 31, 2012. On a stabilized square footage leased basis, our portfolio was 88.1% leased as of June 30, 2012. The stabilized leased percentage excludes the impact of value-add acquisitions completed in 2010 and 2011 (see page 33) that have not yet reached stabilization, including 500 West Monroe Street in Chicago, IL, The Medici in Atlanta, GA, Suwanee Gateway One in Suwanee, GA, and 400 TownPark in Lake Mary, FL. During the last year, our same store stabilized leased percentage declined from 88.5% at June 30, 2011 to 87.9% at June 30, 2012. The primary reason for the decline in the leased rate for our same store stabilized assets during that period is negative net absorption associated with several recent lease expirations (after taking into account leases signed to backfill the affected spaces), including space at 200 Bridgewater Crossing in Bridgewater, NJ associated with the sanofi-aventis lease expiration and at Aon Center in Chicago, IL associated with the Kirkland & Ellis lease expiration. Please refer to page 22 for additional leased percentage information.
 
- The weighted average remaining lease term of our portfolio was 6.5 years(2) as of June 30, 2012 as compared to 6.4 years at December 31, 2011.
 
- During the three months ended June 30, 2012, the Company completed 595,000 square feet of total leasing. Of the total office leasing activity during the quarter, we signed renewal leases for 234,000 square feet and new tenant leases for 362,000 square feet. No leases were signed for our industrial or joint venture assets during the quarter. During the first half of the year, we completed 1,041,000 square feet of leasing for our consolidated office properties and 1,414,000 square feet of leasing inclusive of activity associated with our industrial and unconsolidated joint venture assets. The average committed capital cost for leases signed during the first half of the year at our consolidated office properties was $4.75 per square foot per year of lease term. Average committed capital cost per square foot per year of lease term for renewal leases signed during the six months ended June 30, 2012 was $2.48 and average committed capital cost per square foot per year of lease term for new leases signed during the same time period was $5.83 (see page 28).	
 
(1) FFO, Core FFO and AFFO are supplemental non-GAAP financial measures. See pages 35-36 for definitions of non-GAAP financial measures. See pages 13 and 38 for reconciliations of FFO, Core FFO and AFFO to Net Income.
(2) Remaining lease term (after taking into account leases for vacant spaces which had been executed but not commenced as of June 30, 2012) is weighted based on Annualized Lease Revenue, as defined on page 35.	
 
5

Piedmont Office Realty Trust, Inc.
Financial Highlights
As of June 30, 2012

 
 	-	During the three months ended June 30, 2012, we executed six 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	
 Piper Jaffray & Co.	  	US Bancorp Center	  	Minneapolis, MN	  	123,882	  	 	  	2025	  	New (former sub-tenant)	
 Brother International Corporation	  	200 Bridgewater Crossing	  	Bridgewater, NJ	  	101,724	  	 	  	2023	  	New	
 HD Vest	  	Las Colinas Corporate Center I	  	Irving, TX	  	81,069	  	 	  	2023	  	Renewal	
 Dendreon Corporation	  	200 Bridgewater Crossing	  	Bridgewater, NJ	  	39,937	  	 	  	2023	  	New	
 Global Knowledge Training, LLC	  	Windy Point I	  	Schaumburg, IL	  	22,028	  	 	  	2020	  	Renewal / Expansion	
 Comptroller of the Currency	  	400 Virginia Avenue	  	Washington, DC	  	21,042	  	 	  	2017	  	Renewal	
Leasing Update                                         
 
 	-	As of March 31, 2012, there were three tenants whose leases contributed greater than 1% to our Annualized Lease Revenue and were scheduled to expire during the second quarter of 2012 or the eighteen month period following the end of the second quarter of 2012. Information regarding the leasing status of the spaces associated with those tenants’ leases is presented below.	

Tenant Name	 	Property	 	Property Location	 	Square
Footage  (1)	 	Percentage of Current
Quarter Annualized Lease
Revenue (%)	 	Expiration (2)	 	Current Leasing Status	
United States of America
(National Park Service)	 	1201 Eye Street	 	Washington, D.C.	 	219,750	 	1.9%	 	Q3 2012	 	The Company is awaiting the release of the Congressionally-approved solicitation for offers from the GSA, a key component of the Government’s space acquisition process. National Park Service is now in holdover status. The Company anticipates that the National Park Service will remain in holdover in its existing space while the GSA negotiates the National Park Service’s future lease.	
Comptroller of the Currency	 	One
Independence
Square	 	Washington, D.C.	 	333,815	 	3.7%	 	Q1 2013	 	The tenant is expected to vacate at lease expiration. The Company is actively marketing the space for lease.	
BP	 	Aon Center	 	Chicago, IL	 	776,359	 	5.9%	 	Q4 2013	 	Lease negotiations with the primary sublessee, Aon Corporation, are near completion. Aon is expected to lease approximately 400,000 square feet on a direct basis with no downtime between the expiration of the BP lease and the commencement of the Aon lease. Additionally, long-term leases comprising approximately 37% of the square footage leased by BP have been entered into with: Thoughtworks, Integrys Energy Group, and Federal Home Loan Bank. After the execution of the Aon lease, leases comprising approximately 88% of the square footage leased by BP will have been signed.	

(1) Square footage represents the total square footage leased by the tenant at the building expiring during the expiration quarter.
(2) The lease expiration date presented is that of the majority of the space leased to the tenant at the building.
 
6

Piedmont Office Realty Trust, Inc.
Financial Highlights
As of June 30, 2012

 
 	-	Piedmont typically signs leases several months in advance of their anticipated lease commencement dates. Presented below is a schedule of uncommenced leases greater than 50,000 square feet and their anticipated commencement dates. Lease renewals are excluded from this schedule.	

Tenant Name	  	Property	  	Property Location	  	Square Feet
Leased	  	  	  	Space Status	  	Estimated
Commencement Date	  	New / Expansion	
KPMG	  	Aon Center	  	Chicago, IL	  	239,189	  	 	  	Vacant	  	Q3 2012	  	New	
United Healthcare Services, Inc.	  	Aon Center	  	Chicago, IL	  	55,059	  	 	  	Vacant	  	Q3 2012	  	New	
GE (1)	  	500 West Monroe Street	  	Chicago, IL	  	86,028	  	 	  	Vacant	  	Q4 2012 - Q4 2014	  	Expansion	
Brother International Corporation	  	200 Bridgewater Crossing	  	Bridgewater, NJ	  	101,724	  	 	  	Vacant	  	Q1 2013	  	New	
Thoughtworks, Inc.	  	Aon Center	  	Chicago, IL	  	52,529	  	 	  	Not Vacant	  	Q4 2013	  	New	
Federal Home Loan Bank of Chicago	  	Aon Center	  	Chicago, IL	  	79,054	  	 	  	Not Vacant	  	Q4 2013	  	New	
Integrys Business Support, LLC	  	Aon Center	  	Chicago, IL	  	159,432	  	 	  	Not Vacant	  	Q2 2014	  	New	
Piper Jaffray & Co.	  	US Bancorp Center	  	Minneapolis, MN	  	123,882	  	 	  	Not Vacant	  	Q2 2014	  	New	
(1) The square footage presented includes the 19th floor premises, which is leased through fourth quarter 2012. GE is required to lease that space one year after the commencement of the renewal term.
Occupancy versus NOI Analysis            
 	-	Piedmont has been in a period of high lease rollover since 2010. This high lease rollover has resulted in a decrease in leased percentage and economic leased percentage. This, in turn, has effected a lower Same Store NOI than might otherwise be anticipated given the overall leased percentage and the historical relationship between leased percentage and Same Store NOI. The decreased economic leased percentage is attributable to two factors:	
1) leases which have been contractually entered into for currently vacant space which have not commenced (amounting to approximately 600,000 square feet of leases as of June 30, 2012, or 2.8% of the office portfolio); and
2) leases which have commenced but the tenants have not commenced paying full rent due to rental abatements (amounting to 1.3 million square feet of leases as of June 30, 2012, or a 4.7% impact to leased percentage on an economic basis).
As the executed but not commenced leases become effective and as the rental abatement periods expire, there will be greater Same Store NOI growth than might otherwise be expected based on changes in overall leased percentage alone during that time period.
Financing and Capital Activity            
 	-	As of June 30, 2012, our ratio of debt to total gross assets was 26.7%, our ratio of debt to gross real estate assets was 30.7%, and our ratio of debt to total market capitalization was 32.3%. These debt ratios are based on total principal amount outstanding for our various loans at June 30, 2012.	
 
 	-	On May 31, 2012, Piedmont completed the sale of 26200 Enterprise Way, a 144,906 square foot office building located in Lake Forest, CA. The property was sold for $28.25 million, or $195 per square foot. Piedmont recorded a gain on the sale of the asset of approximately $10 million. The sale allowed the Company to divest a two-story property that was not deemed to be consistent with its long-term strategic objectives for location and building quality.	
 
 	-	On June 28, 2012, Piedmont completed the purchase of approximately 2.0 acres of land adjacent to The Medici, one of the Company’s recent value-add acquisitions, in Atlanta, GA. The site is commonly referred to as Gavitello by brokers. Located within the Buckhead area of Atlanta, the site is part of a mixed-use, high-end office and residential complex. The site is zoned for office development and will accommodate a building consisting of approximately 250,000 square feet. The acquisition adds to the Company’s developable land holdings and allows the Company to control a site that is directly competitive to The Medici.	
 
 	-	On May 1, 2012, Piedmont repaid a $45 million loan secured by 4250 North Fairfax Drive in Arlington, VA. The loan was open to prepayment without any yield maintenance requirements. The repayment of the loan allowed Piedmont to further its strategic objective of decreasing its secured debt borrowings in relation to its total borrowings.	
 
 	-	On May 2, 2012, the Board of Directors of Piedmont declared dividends for the second quarter of 2012 in the amount of $0.20 per common share outstanding to stockholders of record as of the close of business on June 1, 2012. The dividends were paid on June 22, 2012.	
 
7

Piedmont Office Realty Trust, Inc.
Financial Highlights
As of June 30, 2012

 
 	-	During the second quarter of 2012, the Company repurchased approximately 2.6 million shares of common stock at an average purchase price of $16.66 per share, or approximately $42.8 million in aggregate (before consideration of transaction costs). Since the stock repurchase program’s inception last fall, the Company has repurchased a total of 2.8 million shares at an average price of $16.62 per share, or approximately $46.1 million in aggregate (before consideration of transaction costs). Any future repurchases of the Company’s common stock will be made at the discretion of the Company. As of quarter end, there was Board-approved capacity for additional repurchases totaling approximately $250 million under the stock repurchase plan.	
 
 	-	The ongoing shareholder litigation is awaiting the judge’s ruling on our motion to dismiss the one remaining item in the case. Piedmont believes that the case is without merit and intends to continue to vigorously defend. See Piedmont’s Form 10-Q dated as of June 30, 2012 for further disclosure.	
Subsequent Events                              
 
 	-	Piedmont is close to finalizing a new $500 million unsecured revolving credit facility. The terms of the facility will be provided after the transaction has closed. The Company’s current revolver will be terminated prior to the effectiveness of the transaction.	
 
 	-	On August 1, 2012, the Board of Directors of Piedmont declared dividends for the third quarter of 2012 in the amount of $0.20 per common share outstanding to stockholders of record as of the close of business on August 31, 2012. The dividends are to be paid on September 21, 2012.	
Guidance for 2012                               
 
 	-	The following financial guidance for calendar year 2012 remains unchanged and is based on management’s expectations at this time:	

 	  	Low        High	
Core Funds from Operations	  	$234   -  $250 million	
Core Funds from Operations per diluted share	  	$1.35  -  $1.45	
These estimates reflect management’s view of current market conditions and incorporate certain economic and operational assumptions and projections, including the disposition of 35 West Wacker Drive which contributed approximately $0.13 per share of funds from operations in 2011. 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 lease commencements and expirations, repairs and maintenance, capital expenditures, capital markets activities and one-time revenue or expense events. In addition, the Company’s guidance is based on information available to management as of the date of this supplemental report.
 
8

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

This section of our supplemental report includes non-GAAP financial measures, including, but not limited to, Core Earnings Before Interest, Taxes, Depreciation, and Amortization (Core EBITDA), Funds from Operations (FFO), Core Funds from Operations (Core FFO), and Adjusted Funds from Operations (AFFO). Definitions of these non-GAAP measures are provided on pages 35-36 and reconciliations are provided on pages 38-40.

 	 	Three Months Ended	 	
 
Selected Operating Data	 	 
      6/30/2012      	 	 	 
      3/31/2012      	 	 	 
      12/31/2011      	 	 	 
      9/30/2011      	 	 	 
      6/30/2011      	 	
 	 	 	 	 	 	
Percent leased (1)	 	 	85.0%	  	 	 	84.4%	  	 	 	86.5%	  	 	 	86.4%	  	 	 	86.5%	  	
 	 	 	 	 	 	
Percent leased - stabilized portfolio (1) (2)	 	 	88.1%	  	 	 	87.5%	  	 	 	89.1%	  	 	 	88.8%	  	 	 	89.0%	  	
 	 	 	 	 	 	
Rental income	 	 	$105,992	  	 	 	$105,282	  	 	 	$105,982	  	 	 	$104,460	  	 	 	$103,205	  	
 	 	 	 	 	 	
Total revenues	 	 	$133,716	  	 	 	$132,697	  	 	 	$135,992	  	 	 	$132,805	  	 	 	$135,555	  	
 	 	 	 	 	 	
Total operating expenses	 	 	$97,840	  	 	 	$98,111	  	 	 	$103,509	  	 	 	$96,386	  	 	 	$100,034	  	
 	 	 	 	 	 	
Real estate operating income	 	 	$35,876	  	 	 	$34,586	  	 	 	$32,483	  	 	 	$36,419	  	 	 	$35,521	  	
 	 	 	 	 	 	
Core EBITDA	 	 	$76,327	  	 	 	$76,680	  	 	 	$82,523	  	 	 	$86,941	  	 	 	$84,729	  	
 	 	 	 	 	 	
Core FFO	 	 	$60,356	  	 	 	$60,043	  	 	 	$65,270	  	 	 	$69,203	  	 	 	$65,843	  	
 	 	 	 	 	 	
Core FFO per share - diluted	 	 	$0.35	  	 	 	$0.35	  	 	 	$0.38	  	 	 	$0.40	  	 	 	$0.38	  	
 	 	 	 	 	 	
AFFO	 	 	$36,216	  	 	 	$50,113	  	 	 	$44,728	  	 	 	$50,988	  	 	 	$50,578	  	
 	 	 	 	 	 	
AFFO per share - diluted	 	 	$0.21	  	 	 	$0.29	  	 	 	$0.26	  	 	 	$0.29	  	 	 	$0.29	  	
 	 	 	 	 	 	
Gross dividends	 	 	$34,418	  	 	 	$34,526	  	 	 	$54,441	  	 	 	$54,441	  	 	 	$54,440	  	
 	 	 	 	 	 	
Dividends per share	 	 	$0.200	  	 	 	$0.200	  	 	 	$0.315	  	 	 	$0.315	  	 	 	$0.315	  	
 	 	 	 	 	 	
Selected Balance Sheet Data	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	
Total real estate assets	 	 	$3,638,101	  	 	 	$3,657,677	  	 	 	$3,704,051	  	 	 	$3,926,638	  	 	 	$3,899,639	  	
 	 	 	 	 	 	
Total gross real estate assets	 	 	$4,558,128	  	 	 	$4,590,544	  	 	 	$4,615,812	  	 	 	$4,875,854	  	 	 	$4,828,700	  	
 	 	 	 	 	 	
Total assets	 	 	$4,328,308	  	 	 	$4,326,698	  	 	 	$4,447,834	  	 	 	$4,613,118	  	 	 	$4,560,206	  	
 	 	 	 	 	 	
Net debt (3)	 	 	$1,325,610	  	 	 	$1,298,738	  	 	 	$1,323,796	  	 	 	$1,600,650	  	 	 	$1,583,812	  	
 	 	 	 	 	 	
Total liabilities	 	 	$1,601,568	  	 	 	$1,550,040	  	 	 	$1,674,406	  	 	 	$1,896,195	  	 	 	$1,838,983	  	
 	 	 	 	 	 	
Ratios	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	
Core EBITDA margin (4)	 	 	56.9%	  	 	 	57.1%	  	 	 	55.8%	  	 	 	59.8%	  	 	 	56.1%	  	
 	 	 	 	 	 	
Fixed charge coverage ratio (5)	 	 	4.8 x	  	 	 	4.6 x	  	 	 	4.7 x	  	 	 	4.9 x	  	 	 	4.4 x	  	
 	 	 	 	 	 	
Net debt to core EBITDA (6) (7)	 	 	4.3 x	  	 	 	4.2 x	  	 	 	4.0 x	  	 	 	4.6 x	  	 	 	4.7 x	  	

(1) Please refer to page 22 for additional leased percentage information.
(2) Please refer to page 33 for additional information on value-add properties, data for which is removed from stabilized portfolio totals.
(3) Net debt is calculated as the total principal amount of debt outstanding minus cash and cash equivalents and escrow deposits and restricted cash. The decrease in net debt during the fourth quarter of 2011 was primarily attributable to the application of proceeds from the sale of 35 West Wacker Drive.
(4) Core EBITDA margin is calculated as Core EBITDA divided by total revenues (including revenues associated with discontinued operations).
(5) The fixed charge coverage ratio is calculated as Core EBITDA divided by the sum of interest expense, principal amortization, capitalized interest and preferred dividends. The Company had no capitalized interest, principal amortization or preferred dividends during any of the periods presented.
(6) The Company’s net debt declined during the fourth quarter of 2011 with the application of the proceeds from the sale of 35 West Wacker Drive, thereby positively affecting the net debt to core EBITDA ratios.
(7) Core EBITDA is annualized for the purposes of this calculation.
 
9

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

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	  June 30, 2012  	 	 	  March 31, 2012  	 	 	  December 31, 2011  	 	 	  September 30, 2011  	 	 	  June 30, 2011  	 	
Assets:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Real estate, at cost:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Land assets	 	  $	629,476 	  	 	  $	631,745 	  	 	  $	640,196 	  	 	  $	693,229 	  	 	  $	693,962 	  	
Buildings and improvements	 	 	3,754,954 	  	 	 	3,750,475 	  	 	 	3,759,596 	  	 	 	3,930,126 	  	 	 	3,894,258 	  	
Buildings and improvements, accumulated depreciation	 	 	(837,285)	  	 	 	(813,679)	  	 	 	(792,342)	  	 	 	(807,917)	  	 	 	(792,881)	  	
Intangible lease asset	 	 	149,544 	  	 	 	191,599 	  	 	 	198,667 	  	 	 	232,973 	  	 	 	225,182 	  	
Intangible lease asset, accumulated amortization	 	 	(82,742)	  	 	 	(119,188)	  	 	 	(119,419)	  	 	 	(141,299)	  	 	 	(136,180)	  	
Construction in progress	 	 	24,154 	  	 	 	16,725 	  	 	 	17,353 	  	 	 	19,526 	  	 	 	15,298 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total real estate assets	 	 	3,638,101 	  	 	 	3,657,677 	  	 	 	3,704,051 	  	 	 	3,926,638 	  	 	 	3,899,639 	  	
Investment in unconsolidated joint ventures	 	 	37,580 	  	 	 	37,901 	  	 	 	38,181 	  	 	 	38,391 	  	 	 	41,271 	  	
Cash and cash equivalents	 	 	26,869 	  	 	 	28,679 	  	 	 	139,690 	  	 	 	16,128 	  	 	 	21,404 	  	
Tenant receivables, net of allowance for doubtful accounts	 	 	22,884 	  	 	 	24,932 	  	 	 	24,722 	  	 	 	32,066 	  	 	 	31,143 	  	
Straight line rent receivable	 	 	111,731 	  	 	 	106,723 	  	 	 	104,801 	  	 	 	110,818 	  	 	 	107,463 	  	
Notes receivable	 	 	19,000 	  	 	 	19,000 	  	 	 	-     	  	 	 	-     	  	 	 	-     	  	
Due from unconsolidated joint ventures	 	 	569 	  	 	 	449 	  	 	 	788 	  	 	 	643 	  	 	 	537 	  	
Escrow deposits and restricted cash	 	 	48,046 	  	 	 	25,108 	  	 	 	9,039 	  	 	 	47,747 	  	 	 	32,309 	  	
Prepaid expenses and other assets	 	 	7,385 	  	 	 	12,477 	  	 	 	9,911 	  	 	 	13,978 	  	 	 	14,577 	  	
Goodwill	 	 	180,097 	  	 	 	180,097 	  	 	 	180,097 	  	 	 	180,097 	  	 	 	180,097 	  	
Deferred financing costs, less accumulated amortization	 	 	4,597 	  	 	 	5,187 	  	 	 	5,977 	  	 	 	4,788 	  	 	 	4,396 	  	
Deferred lease costs, less accumulated amortization	 	 	231,449 	  	 	 	228,468 	  	 	 	230,577 	  	 	 	241,824 	  	 	 	227,370 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total assets	 	  $	4,328,308 	  	 	  $	4,326,698 	  	 	  $	4,447,834 	  	 	  $	4,613,118 	  	 	  $	4,560,206 	  	

Liabilities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Line of credit and notes payable	 	  $	1,400,525 	  	 	  $	1,352,525 	  	 	  $	1,472,525 	  	 	  $	1,664,525 	  	 	  $	1,637,054 	  	
Accounts payable, accrued expenses, and accrued capital expenditures	 	 	126,207 	  	 	 	116,292 	  	 	 	122,986 	  	 	 	143,106 	  	 	 	126,111 	  	
Deferred income	 	 	23,668 	  	 	 	32,031 	  	 	 	27,321 	  	 	 	32,514 	  	 	 	32,161 	  	
Intangible lease liabilities, less accumulated amortization	 	 	44,246 	  	 	 	46,640 	  	 	 	49,037 	  	 	 	56,050 	  	 	 	43,657 	  	
Interest rate swap	 	 	6,922 	  	 	 	2,552 	  	 	 	2,537 	  	 	 	-     	  	 	 	-     	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities	 	 	1,601,568 	  	 	 	1,550,040 	  	 	 	1,674,406 	  	 	 	  1,896,195 	  	 	 	1,838,983 	  	
 	 	 	 	 	 	
Stockholders’ equity:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Common stock	 	 	1,702 	  	 	 	1,726 	  	 	 	1,726 	  	 	 	1,728 	  	 	 	1,728 	  	
Additional paid in capital	 	 	3,665,284 	  	 	 	3,664,202 	  	 	 	3,663,662 	  	 	 	3,663,155 	  	 	 	3,662,522 	  	
Cumulative distributions in excess of earnings	 	 	(934,933)	  	 	 	(888,331)	  	 	 	(891,032)	  	 	 	(952,370)	  	 	 	(948,956)	  	
Other comprehensive loss	 	 	(6,922)	  	 	 	(2,552)	  	 	 	(2,537)	  	 	 	-     	  	 	 	(44)	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Piedmont stockholders’ equity	 	 	2,725,131 	  	 	 	2,775,045 	  	 	 	2,771,819 	  	 	 	2,712,513 	  	 	 	2,715,250 	  	
Non-controlling interest	 	 	1,609 	  	 	 	1,613 	  	 	 	1,609 	  	 	 	4,410 	  	 	 	5,973 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total stockholders’ equity	 	 	2,726,740 	  	 	 	2,776,658 	  	 	 	2,773,428 	  	 	 	2,716,923 	  	 	 	2,721,223 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities, redeemable common stock and stockholders’ equity	 	  $	4,328,308 	  	 	  $	4,326,698 	  	 	$	4,447,834 	  	 	  $	4,613,118 	  	 	  $	4,560,206 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Common stock outstanding at end of period	 	 	170,235 	  	 	 	172,630 	  	 	 	172,630 	  	 	 	172,827 	  	 	 	  172,827 	  	

 
10

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	
 	  	 	 	 	
 	  	        6/30/2012        	 	  	        3/31/2012        	 	  	        12/31/2011        	 	  	        9/30/2011        	 	  	        6/30/2011        	 	

Revenues:	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Rental income	  	    $	105,992 	  	  	    $	105,282 	  	  	    $	105,982 	  	  	    $	104,460 	  	  	    $	103,205 	  	
Tenant reimbursements	  	 	27,010 	  	  	 	26,718 	  	  	 	29,409 	  	  	 	28,268 	  	  	 	30,640 	  	
Property management fee revenue	  	 	626 	  	  	 	574 	  	  	 	281 	  	  	 	110 	  	  	 	363 	  	
Other rental income	  	 	88 	  	  	 	123 	  	  	 	320 	  	  	 	(33)	  	  	 	1,347 	  	
 	  	 	 	 	
      Total revenues	  	 	133,716 	  	  	 	132,697 	  	  	 	135,992 	  	  	 	132,805 	  	  	 	135,555 	  	
 	 	 	 	 	 	
Operating expenses:	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Property operating costs	  	 	53,699 	  	  	 	52,743 	  	  	 	55,107 	  	  	 	50,814 	  	  	 	52,950 	  	
Depreciation	  	 	27,798 	  	  	 	27,368 	  	  	 	26,794 	  	  	 	26,071 	  	  	 	25,702 	  	
Amortization	  	 	11,478 	  	  	 	12,743 	  	  	 	15,403 	  	  	 	14,824 	  	  	 	14,040 	  	
Impairment loss	  	 	-     	  	  	 	-     	  	  	 	-     	  	  	 	-     	  	  	 	-     	  	
General and administrative	  	 	4,865 	  	  	 	5,257 	  	  	 	6,205 	  	  	 	4,677 	  	  	 	7,342 	  	
 	  	 	 	 	
      Total operating expenses	  	 	97,840 	  	  	 	98,111 	  	  	 	103,509 	  	  	 	96,386 	  	  	 	100,034 	  	

Real estate operating income	  	 	35,876 	  	  	 	34,586 	  	  	 	32,483 	  	  	 	36,419 	  	  	 	35,521 	  	
 	 	 	 	 	 	
Other income (expense):	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Interest expense	  	 	(15,943)	  	  	 	(16,537)	  	  	 	(16,179)	  	  	 	(16,236)	  	  	 	(17,762)	  	
Interest and other income (expense)	  	 	285 	  	  	 	97 	  	  	 	(357)	  	  	 	(91)	  	  	 	(238)	  	
Equity in income of unconsolidated joint ventures	  	 	246 	  	  	 	170 	  	  	 	587 	  	  	 	485 	  	  	 	338 	  	
Gain / (loss) on consolidation of variable interest entity	  	 	-     	  	  	 	-     	  	  	 	-     	  	  	 	-     	  	  	 	(388)	  	
Gain / (loss) on extinguishment of debt	  	 	-     	  	  	 	-     	  	  	 	1,039 	  	  	 	-     	  	  	 	-     	  	
 	  	 	 	 	
      Total other income (expense)	  	 	(15,412)	  	  	 	(16,270)	  	  	 	(14,910)	  	  	 	(15,842)	  	  	 	(18,050)	  	

Income from continuing operations	  	 	20,464 	  	  	 	18,316 	  	  	 	17,573 	  	  	 	20,577 	  	  	 	17,471 	  	
 	 	 	 	 	 	
Discontinued operations:	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Operating income, excluding impairment loss	  	 	240 	  	  	 	1,085 	  	  	 	5,550 	  	  	 	3,697 	  	  	 	3,560 	  	
Gain / (loss) on sale of properties	  	 	10,008 	  	  	 	17,830 	  	  	 	95,901 	  	  	 	26,756 	  	  	 	-     	  	
 	  	 	 	 	
      Income / (loss) from discontinued operations (1)	  	 	10,248 	  	  	 	18,915 	  	  	 	101,451 	  	  	 	30,453 	  	  	 	3,560 	  	

Net income	  	 	30,712 	  	  	 	37,231 	  	  	 	119,024 	  	  	 	51,030 	  	  	 	21,031 	  	
 	 	 	 	 	 	
Less: Net income attributable to noncontrolling interest	  	 	(4)	  	  	 	(4)	  	  	 	(4)	  	  	 	(4)	  	  	 	(4)	  	

Net income attributable to Piedmont	  	    $	30,708 	  	  	    $	37,227 	  	  	    $	119,020 	  	  	    $	51,026 	  	  	    $	21,027 	  	

Weighted average common shares outstanding - diluted	  	 	172,209 	  	  	 	172,874 	  	  	 	173,036 	  	  	 	173,045 	  	  	 	172,986 	  	
 	 	 	 	 	 	
Net income per share available to common stockholders - diluted                	  	    $	0.18 	  	  	    $	0.22 	  	  	    $	0.69 	  	  	    $	0.29 	  	  	    $	0.12 	  	

 
(1) Reflects operating results for 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; 35 West Wacker Drive in Chicago, IL, which was sold on December 15, 2011; Deschutes, Rhein, Rogue, Willamette, and Portland Land Parcels in Beaverton, OR, which were all sold on March 19, 2012; and 26200 Enterprise Way in Lake Forest, CA, which was sold on May 31, 2012.
 
11

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	 	Six Months Ended	 	
 	 	  6/30/2012  	 	 	  6/30/2011  	 	 	  Change  	 	 	  Change  	 	 	  6/30/2012  	 	 	  6/30/2011  	 	 	  Change  	 	 	  Change  	 	
Revenues:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental income	 	  $	    105,992  	  	 	  $	    103,205  	  	 	  $	    2,787  	  	 	 	2.7% 	  	 	  $	    211,275  	  	 	  $	    203,035  	  	 	  $	    8,240  	  	 	 	4.1% 	  	
Tenant reimbursements	 	 	27,010  	  	 	 	30,640  	  	 	 	(3,630) 	  	 	 	-11.8% 	  	 	 	53,728  	  	 	 	57,520  	  	 	 	(3,792) 	  	 	 	-6.6% 	  	
Property management fee revenue	 	 	626  	  	 	 	363  	  	 	 	263  	  	 	 	72.5% 	  	 	 	1,199  	  	 	 	1,193  	  	 	 	6  	  	 	 	0.5% 	  	
Other rental income	 	 	88  	  	 	 	1,347  	  	 	 	(1,259) 	  	 	 	-93.5% 	  	 	 	212  	  	 	 	4,751  	  	 	 	(4,539) 	  	 	 	-95.5% 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	 	 	133,716  	  	 	 	135,555  	  	 	 	(1,839) 	  	 	 	-1.4% 	  	 	 	266,414  	  	 	 	266,499  	  	 	 	(85) 	  	 	 	0.0% 	  	
 	 	 	 	 	 	 	 	 	
Operating expenses:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property operating costs	 	 	53,699  	  	 	 	52,950  	  	 	 	(749) 	  	 	 	-1.4% 	  	 	 	106,442  	  	 	 	101,743  	  	 	 	(4,699) 	  	 	 	-4.6% 	  	
Depreciation	 	 	27,798  	  	 	 	25,702  	  	 	 	(2,096) 	  	 	 	-8.2% 	  	 	 	55,167  	  	 	 	50,663  	  	 	 	(4,504) 	  	 	 	-8.9% 	  	
Amortization	 	 	11,478  	  	 	 	14,040  	  	 	 	2,562  	  	 	 	18.2% 	  	 	 	24,221  	  	 	 	24,314  	  	 	 	93  	  	 	 	0.4% 	  	
Impairment loss	 	 	-      	  	 	 	-      	  	 	 	-      	  	 	 	0.0% 	  	 	 	-      	  	 	 	-      	  	 	 	-      	  	 	 	0.0% 	  	
General and administrative	 	 	4,865  	  	 	 	7,342  	  	 	 	2,477  	  	 	 	33.7% 	  	 	 	10,122  	  	 	 	13,954  	  	 	 	3,832  	  	 	 	27.5% 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses	 	 	97,840  	  	 	 	100,034  	  	 	 	2,194  	  	 	 	2.2% 	  	 	 	195,952  	  	 	 	190,674  	  	 	 	(5,278) 	  	 	 	-2.8% 	  	

Real estate operating income	 	 	35,876  	  	 	 	35,521  	  	 	 	355  	  	 	 	1.0% 	  	 	 	70,462  	  	 	 	75,825  	  	 	 	(5,363) 	  	 	 	-7.1% 	  	
 	 	 	 	 	 	 	 	 	
Other income (expense):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest expense	 	 	(15,943) 	  	 	 	(17,762) 	  	 	 	1,819  	  	 	 	10.2% 	  	 	 	(32,480) 	  	 	 	(33,402) 	  	 	 	922  	  	 	 	2.8% 	  	
Interest and other income (expense)	 	 	285  	  	 	 	(238) 	  	 	 	523  	  	 	 	219.7% 	  	 	 	382  	  	 	 	3,221  	  	 	 	(2,839) 	  	 	 	-88.1% 	  	
Equity in income of unconsolidated joint ventures	 	 	246  	  	 	 	338  	  	 	 	(92) 	  	 	 	-27.2% 	  	 	 	416  	  	 	 	547  	  	 	 	(131) 	  	 	 	-23.9% 	  	
Gain / (loss) on consolidation of variable interest entity	 	 	-      	  	 	 	(388) 	  	 	 	388  	  	 	 	100.0% 	  	 	 	-      	  	 	 	1,532  	  	 	 	(1,532) 	  	 	 	-100.0% 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total other income (expense)	 	 	(15,412) 	  	 	 	(18,050) 	  	 	 	2,638  	  	 	 	14.6% 	  	 	 	(31,682) 	  	 	 	(28,102) 	  	 	 	(3,580) 	  	 	 	-12.7% 	  	

Income from continuing operations	 	 	20,464  	  	 	 	17,471  	  	 	 	2,993  	  	 	 	17.1% 	  	 	 	38,780  	  	 	 	47,723  	  	 	 	(8,943) 	  	 	 	-18.7% 	  	
 	 	 	 	 	 	 	 	 	
Discontinued operations:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income, excluding impairment loss	 	 	240  	  	 	 	3,560  	  	 	 	(3,320) 	  	 	 	-93.3% 	  	 	 	1,325  	  	 	 	7,279  	  	 	 	(5,954) 	  	 	 	-81.8% 	  	
Gain / (loss) on sale of properties	 	 	10,008  	  	 	 	-      	  	 	 	10,008  	  	 	 	0.0% 	  	 	 	27,838  	  	 	 	-      	  	 	 	27,838  	  	 	 	0.0% 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income / (loss) from discontinued operations (1)	 	 	10,248  	  	 	 	3,560  	  	 	 	6,688  	  	 	 	187.9% 	  	 	 	29,163  	  	 	 	7,279  	  	 	 	21,884  	  	 	 	300.6% 	  	

Net income	 	 	30,712  	  	 	 	21,031  	  	 	 	9,681  	  	 	 	46.0% 	  	 	 	67,943  	  	 	 	55,002  	  	 	 	12,941  	  	 	 	23.5% 	  	
 	 	 	 	 	 	 	 	 	
Less: Net income attributable to noncontrolling interest	 	 	(4) 	  	 	 	(4) 	  	 	 	-      	  	 	 	0.0% 	  	 	 	(8) 	  	 	 	(8) 	  	 	 	-      	  	 	 	0.0% 	  	

Net income attributable to Piedmont	 	  $	    30,708  	  	 	  $	    21,027  	  	 	  $	  9,681  	  	 	 	46.0% 	  	 	  $	    67,935  	  	 	  $	    54,994  	  	 	  $	    12,941  	  	 	 	23.5% 	  	

Weighted average common shares outstanding - diluted	 	 	172,209  	  	 	 	172,986  	  	 	 	 	 	 	 	 	 	 	 	172,520  	  	 	 	172,908  	  	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	
Net income per share available to common stockholders - diluted	 	  $	    0.18  	  	 	  $	    0.12  	  	 	 	 	 	 	 	 	 	 	  $	    0.39  	  	 	  $	    0.32  	  	 	 	 	 	 	 	 	 	

 
(1) Reflects operating results for 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; 35 West Wacker Drive in Chicago, IL, which was sold on December 15, 2011; Deschutes, Rhein, Rogue, Willamette, and Portland Land Parcels in Beaverton, OR, which were all sold on March 19, 2012; and 26200 Enterprise Way in Lake Forest, CA, which was sold on May 31, 2012.
 
12

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	 	Six Months Ended	 	
 	 	    6/30/2012    	 	 	    6/30/2011    	 	 	    6/30/2012    	 	 	    6/30/2011    	 	
Net income attributable to Piedmont	 	  $	30,708  	  	 	  $	21,027  	  	 	  $	67,935  	  	 	  $	54,994  	  	
 	 	 	 	 	
Depreciation (1) (2)	 	 	28,033  	  	 	 	27,879  	  	 	 	55,842  	  	 	 	55,033  	  	
Amortization (1)	 	 	11,539  	  	 	 	15,878  	  	 	 	24,379  	  	 	 	27,984  	  	
Impairment loss (1)	 	 	-      	  	 	 	-      	  	 	 	-      	  	 	 	-      	  	
(Gain) / loss on sale of properties (1)	 	 	(10,008) 	  	 	 	(45) 	  	 	 	(27,838) 	  	 	 	(45) 	  	
(Gain) / loss on consolidation of VIE	 	 	-      	  	 	 	388  	  	 	 	-      	  	 	 	(1,532) 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Funds from operations	 	 	60,272  	  	 	 	65,127  	  	 	 	120,318  	  	 	 	136,434  	  	
 	 	 	 	 	
Acquisition costs	 	 	84  	  	 	 	716  	  	 	 	81  	  	 	 	690  	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core funds from operations	 	 	60,356  	  	 	 	65,843  	  	 	 	120,399  	  	 	 	137,124  	  	
 	 	 	 	 	
Depreciation of non real estate assets	 	 	108  	  	 	 	168  	  	 	 	201  	  	 	 	338  	  	
Stock-based and other non-cash compensation expense	 	 	289  	  	 	 	896  	  	 	 	623  	  	 	 	1,864  	  	
Deferred financing cost amortization (1)	 	 	590  	  	 	 	1,060  	  	 	 	1,392  	  	 	 	1,667  	  	
Amortization of fair market adjustments on notes payable	 	 	-      	  	 	 	942  	  	 	 	-      	  	 	 	942  	  	
Straight-line effects of lease revenue (1)	 	 	(5,477) 	  	 	 	(2,596) 	  	 	 	(7,042) 	  	 	 	(359) 	  	
Amortization of lease-related intangibles (1)	 	 	(1,785) 	  	 	 	(1,670) 	  	 	 	(3,316) 	  	 	 	(3,033) 	  	
Income from amortization of discount on purchase of mezzanine loans	 	 	-      	  	 	 	-      	  	 	 	-      	  	 	 	(484) 	  	
Acquisition costs	 	 	(84) 	  	 	 	(716) 	  	 	 	(81) 	  	 	 	(690) 	  	
Non-incremental capital expenditures (3)	 	 	(17,781) 	  	 	 	(13,349) 	  	 	 	(25,847) 	  	 	 	(30,480) 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted funds from operations	 	  $	36,216  	  	 	  $	50,578  	  	 	  $	86,329  	  	 	  $	106,889  	  	

Weighted average common shares outstanding - diluted	 	 	172,209  	  	 	 	172,986  	  	 	 	172,520  	  	 	 	172,908  	  	
 	 	 	 	 	
Funds from operations per share (diluted)	 	  $	0.35  	  	 	  $	0.38  	  	 	  $	0.70  	  	 	  $	0.79  	  	
Core funds from operations per share (diluted)	 	  $	0.35  	  	 	  $	0.38  	  	 	  $	0.70  	  	 	  $	0.79  	  	
Adjusted funds from operations per share (diluted)	 	  $	0.21  	  	 	  $	0.29  	  	 	  $	0.50  	  	 	  $	0.62  	  	

 
(1)	Includes adjustments for consolidated properties, including discontinued operations, 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 36.	
 
13

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	  	Six Months Ended	 	
 	  	    6/30/2012    	 	  	    6/30/2011    	 	  	    6/30/2012    	 	  	    6/30/2011    	 	
Net income attributable to Piedmont	  	  $	30,708  	  	  	  $	21,027  	  	  	  $	67,935  	  	  	  $	54,994  	  	
 	 	 	 	 	
Net income attributable to noncontrolling interest	  	 	4  	  	  	 	121  	  	  	 	8  	  	  	 	243  	  	
Interest expense	  	 	15,943  	  	  	 	19,313  	  	  	 	32,480  	  	  	 	36,487  	  	
Depreciation (1)	  	 	28,141  	  	  	 	28,047  	  	  	 	56,043  	  	  	 	55,371  	  	
Amortization (1)	  	 	11,539  	  	  	 	15,878  	  	  	 	24,379  	  	  	 	27,984  	  	
Impairment loss (1)	  	 	-      	  	  	 	-      	  	  	 	-      	  	  	 	-      	  	
(Gain) / loss on sale of properties (1)	  	 	(10,008) 	  	  	 	(45) 	  	  	 	(27,838) 	  	  	 	(45) 	  	
(Gain) / loss on consolidation of VIE	  	 	-      	  	  	 	388  	  	  	 	-      	  	  	 	(1,532) 	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Core EBITDA	  	 	76,327  	  	  	 	84,729  	  	  	 	153,007  	  	  	 	173,502  	  	
 	 	 	 	 	
General & administrative expenses (1)	  	 	4,866  	  	  	 	7,392  	  	  	 	10,184  	  	  	 	14,096  	  	
Management fee revenue	  	 	(626) 	  	  	 	(363) 	  	  	 	(1,199) 	  	  	 	(1,193) 	  	
Interest and other income (1)	  	 	(305) 	  	  	 	253  	  	  	 	(403) 	  	  	 	(3,206) 	  	
Lease termination income	  	 	(88) 	  	  	 	(1,347) 	  	  	 	(212) 	  	  	 	(4,751) 	  	
Lease termination expense - straight line rent & acquisition intangibles write-offs	  	 	165  	  	  	 	43  	  	  	 	264  	  	  	 	479  	  	
Straight-line effects of lease revenue (1)	  	 	(5,642) 	  	  	 	(2,639) 	  	  	 	(7,306) 	  	  	 	(667) 	  	
Net effect of amortization of above/(below) market in-place lease intangibles  (1)	  	 	(1,785) 	  	  	 	(1,670) 	  	  	 	(3,316) 	  	  	 	(3,204) 	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Core net operating income - cash basis	  	 	72,912  	  	  	 	86,398  	  	  	 	151,019  	  	  	 	175,056  	  	
 	 	 	 	 	
Net operating income from:	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Acquisitions (2)	  	 	(3,886) 	  	  	 	(3,446) 	  	  	 	(7,036) 	  	  	 	(3,444) 	  	
Dispositions (3)	  	 	(296) 	  	  	 	(7,376) 	  	  	 	(1,692) 	  	  	 	(14,873) 	  	
Industrial properties	  	 	(245) 	  	  	 	(242) 	  	  	 	(487) 	  	  	 	(479) 	  	
Unconsolidated joint ventures	  	 	(598) 	  	  	 	(696) 	  	  	 	(1,188) 	  	  	 	(1,354) 	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Same Store NOI - Cash Basis	  	  $	67,887  	  	  	  $	74,638  	  	  	  $	140,616  	  	  	  $	154,906  	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Change period over period	  	 	-9.0%    	  	  	 	N/A    	  	  	 	-9.2%    	  	  	 	N/A    	  	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Same Store Net Operating Income
Top Seven Markets	  
  	 	 	
  	 	 	  	Three Months Ended	 	  	Six Months Ended	 	 	  	
  	 	 	  	6/30/2012	 	  	6/30/2011	 	  	6/30/2012	 	  	6/30/2011	 	 	  	
  	 	 	  	$	 	  	%  	 	  	$	 	  	%  	 	  	$	 	  	%  	 	  	$	 	  	%  	 	 	  	
 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	
 	 	Washington, D.C. (4)	  	$	17,996	  	  	 	26.5  	  	  	$	17,731	  	  	 	23.7  	  	  	$	37,046	  	  	 	26.3  	  	  	$	35,753	  	  	 	23.1  	  	 	 	
 	 	New York (5)	  	 	11,111	  	  	 	16.4  	  	  	 	14,093	  	  	 	18.9  	  	  	 	23,429	  	  	 	16.7  	  	  	 	27,678	  	  	 	17.9  	  	 	 	
 	 	Chicago (6)	  	 	9,573	  	  	 	14.1  	  	  	 	12,815	  	  	 	17.2  	  	  	 	18,999	  	  	 	13.5  	  	  	 	25,208	  	  	 	16.3  	  	 	 	
 	 	Minneapolis	  	 	5,277	  	  	 	7.8  	  	  	 	4,937	  	  	 	6.6  	  	  	 	10,270	  	  	 	7.3  	  	  	 	9,980	  	  	 	6.4  	  	 	 	
 	 	Dallas	  	 	3,529	  	  	 	5.2  	  	  	 	3,390	  	  	 	4.5  	  	  	 	7,334	  	  	 	5.2  	  	  	 	7,203	  	  	 	4.6  	  	 	 	
 	 	Los Angeles (7)	  	 	3,232	  	  	 	4.7  	  	  	 	3,858	  	  	 	5.2  	  	  	 	6,408	  	  	 	4.6  	  	  	 	7,459	  	  	 	4.8  	  	 	 	
 	 	Boston (8)	  	 	2,696	  	  	 	4.0  	  	  	 	2,598	  	  	 	3.5  	  	  	 	5,240	  	  	 	3.7  	  	  	 	6,469	  	  	 	4.2  	  	 	 	
 	 	Other (9)	  	 	14,473	  	  	 	21.3  	  	  	 	15,216	  	  	 	20.4  	  	  	 	31,890	  	  	 	22.7  	  	  	 	35,156	  	  	 	22.7  	  	 	 	
 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	
 	 	Total	  	  $	        67,887	  	  	 	100.0  	  	  	  $	        74,638	  	  	 	100.0  	  	  	  $	        140,616	  	  	 	100.0  	  	  	  $	        154,906	  	  	 	100.0  	  	 	 	
 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	
(1) Includes amounts attributable to consolidated properties, including discontinued operations, and our proportionate share of amounts attributable to unconsolidated joint ventures.
(2) Acquisitions consist of 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; 225 and 235 Presidential Way in Woburn, MA, purchased on September 13, 2011; 400 TownPark in Lake Mary, FL purchased on November 10, 2011; and Gavitello Land Parcels in Atlanta, GA, purchased on June 28, 2012.
(3) Dispositions consist of Eastpointe Corporate Center in Issaquah, WA, sold on July 1, 2011; 5000 Corporate Court in Holtsville, NY, sold on August 31, 2011; 35 West Wacker Drive in Chicago, IL, sold on December 15, 2011; Deschutes, Rhein, Rogue, Willamette, and Portland Land Parcels in Beaverton, OR, sold on March 19, 2012; and 26200 Enterprise Way in Lake Forest, CA, sold on May 31, 2012.
(4) The increase in Washington, D.C. Same Store Net Operating Income for the six months ended June 30, 2012 as compared to the same period in 2011 was primarily related to increased rental revenue due to a rental rate increase associated with the lease extension of the Comptroller of the Currency at One Independence Square in Washington, D.C.
(5) The decrease in New York Same Store Net Operating Income for the three months and the six months ended June 30, 2012 as compared to the same periods in 2011 was primarily related to the lease expirations of and the downtime and rental abatements associated with newly signed leases to backfill the spaces formerly occupied by sanofi-aventis at 200 & 400 Bridgewater Crossing in Bridgewater, NJ.
(6) The decrease in Chicago Same Store Net Operating Income for the three months and the six months ended June 30, 2012 as compared to the same periods in 2011 was primarily related to the expiration of the Zurich American Insurance Company lease at Windy Point II in Schaumburg, IL in August 2011, as well as the expiration of the Kirkland & Ellis lease at Aon Center in Chicago, IL in December 2011. The loss of the Zurich and Kirkland & Ellis leases reduced rental revenues by approximately $5.2 million and $10.4 million, respectively, for the three months and the six months ended June 30, 2012; these amounts are offset partially by incremental operating expense savings due to the vacancy of those tenants. Additionally, the negative contributions are offset somewhat by the commencement of several new leases during the last year (although there are several replacement leases that are in abatement or have yet to commence).
(7) The decrease in Los Angeles Same Store Net Operating Income for the three months and the six months ended June 30, 2012 as compared to the same periods in 2011 was primarily related to a net lease expiration of approximately 65,000 square feet at 1055 East Colorado Boulevard in Pasadena, CA.
(8) The decrease in Boston Same Store Net Operating Income for the six months ended June 30, 2012 as compared to the same period in 2011 was primarily due to a rental abatement concession associated with a long-term lease renewal with State Street Bank at 1200 Crown Colony Drive in Quincy, MA. The renewal period for the State Street Bank lease commenced in April 2011.
(9) The decrease in Other Same Store Net Operating Income for the three months ended June 30, 2012 as compared to the same period in 2011 was primarily related to a rental abatement concession in 2012 associated with a new lease with Grand Canyon Education at Desert Canyon 300 in Phoenix, AZ. The decrease in Other Same Store Net Operating Income for the six months ended June 30, 2012 as compared to the same period in 2011 was primarily attributable to four factors: 1) the rental abatement concession described above at Desert Canyon 300 in Phoenix, AZ, 2) a rental abatement concession in 2012 associated with a new lease with Chrysler Group, LLC at 1075 West Entrance Drive in Auburn Hills, MI, 3) a decrease in rental revenue associated with a lower lease renewal rental rate at 5601 Headquarters Drive in Plano, TX, and 4) a decrease in rental revenue associated with lease expirations in 2011 at Las Colinas Corporate Center II in Irving, TX.
 
14

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	  	Six Months Ended	 	
 	  	    6/30/2012    	 	  	    6/30/2011    	 	  	    6/30/2012    	 	  	    6/30/2011    	 	
Net income attributable to Piedmont	  	   $	30,708  	  	  	   $	21,027  	  	  	   $	67,935  	  	  	   $	54,994  	  	
 	 	 	 	 	
Net income attributable to noncontrolling interest	  	 	4  	  	  	 	121  	  	  	 	8  	  	  	 	243  	  	
Interest expense	  	 	15,943  	  	  	 	19,313  	  	  	 	32,480  	  	  	 	36,487  	  	
Depreciation (1)	  	 	28,141  	  	  	 	28,047  	  	  	 	56,043  	  	  	 	55,371  	  	
Amortization (1)	  	 	11,539  	  	  	 	15,878  	  	  	 	24,379  	  	  	 	27,984  	  	
Impairment loss (1)	  	 	-      	  	  	 	-      	  	  	 	-      	  	  	 	-      	  	
(Gain) / loss on sale of properties (1)	  	 	(10,008) 	  	  	 	(45) 	  	  	 	(27,838) 	  	  	 	(45) 	  	
(Gain) / loss on consolidation of VIE	  	 	-      	  	  	 	388  	  	  	 	-      	  	  	 	(1,532) 	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Core EBITDA	  	 	76,327  	  	  	 	84,729  	  	  	 	153,007  	  	  	 	173,502  	  	
 	 	 	 	 	
General & administrative expenses (1)	  	 	4,866  	  	  	 	7,392  	  	  	 	10,184  	  	  	 	14,096  	  	
Management fee revenue	  	 	(626) 	  	  	 	(363) 	  	  	 	(1,199) 	  	  	 	(1,193) 	  	
Interest and other income (1)	  	 	(305) 	  	  	 	253  	  	  	 	(403) 	  	  	 	(3,206) 	  	
Lease termination income	  	 	(88) 	  	  	 	(1,347) 	  	  	 	(212) 	  	  	 	(4,751) 	  	
Lease termination expense - straight line rent & acquisition intangibles write-offs	  	 	165  	  	  	 	43  	  	  	 	264  	  	  	 	479  	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Core net operating income - accrual basis	  	 	80,339  	  	  	 	90,707  	  	  	 	161,641  	  	  	 	178,927  	  	
 	 	 	 	 	
Net operating income from:	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Acquisitions (2)	  	 	(5,120) 	  	  	 	(3,591) 	  	  	 	(9,309) 	  	  	 	(3,590) 	  	
Dispositions (3)	  	 	(308) 	  	  	 	(8,958) 	  	  	 	(1,690) 	  	  	 	(17,961) 	  	
Industrial properties	  	 	(496) 	  	  	 	(257) 	  	  	 	(749) 	  	  	 	(513) 	  	
Unconsolidated joint ventures	  	 	(563) 	  	  	 	(653) 	  	  	 	(1,127) 	  	  	 	(1,269) 	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Same Store NOI - Accrual Basis	  	   $	73,852  	  	  	   $	77,248  	  	  	   $	148,766  	  	  	   $	155,594  	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Change period over period	  	 	-4.4%  	  	  	 	N/A  	  	  	 	-4.4%  	  	  	 	N/A  	  	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Same Store Net Operating Income
Top Seven Markets	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	
  	  	Three Months Ended	 	  	Six Months Ended	 	 	  	
  	 	 	  	6/30/2012	 	  	6/30/2011	 	  	6/30/2012	 	  	6/30/2011	 	 	  	
  	 	 	  	$	 	  	%  	 	  	$	 	  	%  	 	  	$	 	  	%  	 	  	$	 	  	%  	 	 	  	
 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	
 	 	Washington, D.C. (4)	  	    $	19,437	  	  	 	26.3  	  	  	  $	18,228	  	  	 	23.6  	  	  	  $	39,893	  	  	 	26.8  	  	  	  $	36,305	  	  	 	23.3  	  	 	 	
 	 	New York (5)	  	 	11,988	  	  	 	16.2  	  	  	 	13,688	  	  	 	17.7  	  	  	 	24,587	  	  	 	16.5  	  	  	 	27,317	  	  	 	17.5  	  	 	 	
 	 	Chicago (6)	  	 	9,177	  	  	 	12.4  	  	  	 	12,308	  	  	 	15.9  	  	  	 	18,306	  	  	 	12.3  	  	  	 	24,401	  	  	 	15.7  	  	 	 	
 	 	Minneapolis (7)	  	 	5,552	  	  	 	7.5  	  	  	 	5,911	  	  	 	7.6  	  	  	 	10,888	  	  	 	7.3  	  	  	 	11,920	  	  	 	7.7  	  	 	 	
 	 	Dallas	  	 	3,883	  	  	 	5.3  	  	  	 	3,601	  	  	 	4.7  	  	  	 	7,811	  	  	 	5.3  	  	  	 	7,635	  	  	 	4.9  	  	 	 	
 	 	Los Angeles (8)	  	 	3,101	  	  	 	4.2  	  	  	 	3,699	  	  	 	4.8  	  	  	 	6,436	  	  	 	4.3  	  	  	 	7,109	  	  	 	4.6  	  	 	 	
 	 	Boston	  	 	2,989	  	  	 	4.1  	  	  	 	2,831	  	  	 	3.7  	  	  	 	5,856	  	  	 	4.0  	  	  	 	6,354	  	  	 	4.1  	  	 	 	
 	 	Other (9)	  	 	17,725	  	  	 	24.0  	  	  	 	16,982	  	  	 	22.0  	  	  	 	34,989	  	  	 	23.5  	  	  	 	34,553	  	  	 	22.2  	  	 	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	
 	 	Total	  	    $	        73,852	  	  	 	100.0  	  	  	  $	    77,248	  	  	 	100.0  	  	  	  $	    148,766	  	  	 	100.0  	  	  	  $	    155,594	  	  	 	100.0  	  	 	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	
(1) Includes amounts attributable to consolidated properties, including discontinued operations, and our proportionate share of amounts attributable to unconsolidated joint ventures.
(2) Acquisitions consist of 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; 225 and 235 Presidential Way in Woburn, MA, purchased on September 13, 2011; 400 TownPark in Lake Mary, FL purchased on November 10, 2011; and Gavitello Land Parcels in Atlanta, GA, purchased on June 28, 2012.
(3) Dispositions consist of Eastpointe Corporate Center in Issaquah, WA, sold on July 1, 2011; 5000 Corporate Court in Holtsville, NY, sold on August 31, 2011; 35 West Wacker Drive in Chicago, IL, sold on December 15, 2011; Deschutes, Rhein, Rogue, Willamette, and Portland Land Parcels in Beaverton, OR, sold on March 19, 2012; and 26200 Enterprise Way in Lake Forest, CA, sold on May 31, 2012.
(4) The increase in Washington, D.C. Same Store Net Operating Income for the three months and the six months ended June 30, 2012 as compared to the same periods in 2011 was primarily attributable to two factors: 1) an increase in revenue due to a rental rate increase associated with the lease extension of the Comptroller of the Currency at One Independence Square in Washington, D.C., and 2) increased rental revenue as a result of the commencement of several new leases at Piedmont Pointe I and II in Bethesda, MD.
(5) The decrease in New York Same Store Net Operating Income for the three months and the six months ended June 30, 2012 as compared to the same periods in 2011 was primarily related to the lease expirations of and the downtime associated with newly signed leases to backfill the spaces formerly occupied by sanofi-aventis at 200 & 400 Bridgewater Crossing in Bridgewater, NJ.
(6) The decrease in Chicago Same Store Net Operating Income for the three months and the six months ended June 30, 2012 as compared to the same periods in 2011 was primarily related to the expiration of the Zurich American Insurance Company lease at Windy Point II in Schaumburg, IL in August 2011, as well as the expiration of the Kirkland & Ellis lease at Aon Center in Chicago, IL in December 2011. The loss of the Zurich and Kirkland & Ellis leases reduced rental revenues by approximately $4.6 million and $9.2 million, respectively, for the three months and the six months ended June 30, 2012; these amounts are offset partially by incremental operating expense savings due to the vacancy of those tenants. Additionally, the negative contributions are offset somewhat by the commencement of several new leases during the last year.
(7) The decrease in Minneapolis Same Store Net Operating Income for the three months and the six months ended June 30, 2012 as compared to the same periods in 2011 was primarily related to the net loss of approximately 76,000 leased square feet associated with the expiration of the HSBC Card Services lease at Crescent Ridge II in Minnetonka, MN.
(8) The decrease in Los Angeles Same Store Net Operating Income for the three months ended June 30, 2012 as compared to the same period in 2011 was primarily related to a net lease expiration of approximately 65,000 square feet at 1055 East Colorado Boulevard in Pasadena, CA.
(9) The increase in Other Same Store Net Operating Income for the three months ended June 30, 2012 as compared to the same period in 2011 was primarily related to three factors: 1) an increase in rental revenue due to downtime between the EDS and Chrysler Group leases in 2011 at 1075 West Entrance Drive in Auburn Hills, MI, 2) an increase in rental revenue due to the commencement of the US Foods lease at River Corporate Center in Tempe, AZ, and 3) an increase in rental revenue due to the commencement of several new leases at Glenridge Highlands II in Atlanta, GA.
 
15

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

 
 	 	 	 	 	 	 	 	 	
 	  	As of
    June 30, 2012    	 	  	As of
    December 31, 2011    	 	
 
Common stock price (1)	  	 	$17.21	  	  	 	$17.04	  	
 
Total shares outstanding	  	 	170,235	  	  	 	172,630	  	
 
Equity market capitalization (1)	  	 	$2,929,741	  	  	 	$2,941,611	  	
 
Total debt - principal amount outstanding	  	 	$1,400,525	  	  	 	$1,472,525	  	
 
Total market capitalization (1)	  	 	$4,330,266	  	  	 	$4,414,136	  	
 
Total debt / Total market capitalization	  	 	32.3%	  	  	 	33.4%	  	
 
Total gross real estate assets	  	 	$4,558,128	  	  	 	$4,615,812	  	
 
Total debt / Total gross real estate assets (2)	  	 	30.7%	  	  	 	31.9%	  	
 
Total debt / Total gross assets (3)	  	 	26.7%	  	  	 	27.5%	  	

(1) Reflects common stock closing price as of the end of the reporting period.
(2) Total debt to total gross real estate assets ratio is defined as total debt divided by gross real estate assets. Gross real estate assets is defined as total real estate assets with the add back of accumulated depreciation and accumulated amortization related to real estate assets.
(3) Total debt to total gross assets ratio is defined as total debt divided by gross assets. Gross assets is defined as total assets with the add back of accumulated depreciation and accumulated amortization related to real estate assets.
 
16

Piedmont Office Realty Trust, Inc.
Debt Summary
As of June 30, 2012
Unaudited ($ in thousands)

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

Floating Rate	  	$113,000(2)	 	0.73%	 	2.0 months	  	 	
Fixed Rate	  	1,287,525	 	4.59%	 	38.3 months	  	 	
 	  	 	
Total	  	$1,400,525	 	4.28%	 	35.4 months	  	 	

 	  	 	 	 	 	 	  	 	

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

Unsecured	  	$413,000	 	2.15%(3)	 	38.9 months	  	 	
Secured	  	987,525	 	5.17%	 	33.9 months	  	 	
 	  	 	
Total	  	$1,400,525	 	4.28%	 	35.4 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    	 	 	

2012	  	$0	  	 	  	$113,000	  	 	  	0.73%	 	8.1%	 	 	
2013	  	0	  	 	  	0	  	 	  	N/A	 	0.0%	 	 	
2014	  	575,000	  	 	  	0	  	 	  	4.89%	 	41.0%	 	 	
2015	  	105,000	  	 	  	0	  	 	  	5.29%	 	7.5%	 	 	
2016	  	167,525	  	 	  	300,000	  	 	  	3.71%	 	33.4%	 	 	
2017	  	140,000	  	 	  	0	  	 	  	5.76%	 	10.0%	 	 	
 	 	 	
Total	  	$987,525	  	 	  	$413,000	  	 	  	4.28%	 	100.0%	 	 	
 	 	 	
(1) All of Piedmont’s outstanding debt as of June 30, 2012 was interest-only debt.
(2) Amount represents the outstanding balance as of June 30, 2012, on the $500 million unsecured line of credit.
(3) The weighted average interest rate is a weighted average rate for amounts outstanding under our $500 million unsecured line of credit and our $300 million unsecured term loan. The $300 million unsecured term loan has a stated variable rate; however, Piedmont entered into interest rate swap agreements which effectively fix the interest rate on this loan at 2.69% through its maturity date of November 22, 2016, assuming no credit rating change for the Company.
 
17

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	
Facility	 	Property	  	Rate(1)	 	Maturity	 	  	Principal Amount
Outstanding as of
June 30, 2012	 	

Secured	 	 	  	 	 	 	 	 	  	 	 	 	
$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(2)	  	4.84%	 	 	6/7/2014	  	  	 	350,000	  	
$105.0 Million Fixed-Rate Loan	 	US Bancorp Center	  	5.29%	 	 	5/11/2015	  	  	 	105,000	  	
$125.0 Million Fixed-Rate Loan	 	Four Property Collateralized Pool(3)	  	5.50%	 	 	4/1/2016	  	  	 	125,000	  	
$42.5 Million Fixed-Rate Loan	 	Las Colinas Corporate Center I & II	  	5.70%	 	 	10/11/2016	  	  	 	42,525	  	
$140.0 Million WDC Fixed-Rate Loans	 	1201 & 1225 Eye Street	  	5.76%	 	 	11/1/2017	  	  	 	140,000	  	

Subtotal / Weighted Average (4)	 	 	  	5.17%	 	 	 	 	  	 	$987,525	  	
 	 	 	 	 	
Unsecured	 	 	  	 	 	 	 	 	  	 	 	 	
$500.0 Million Unsecured Facility(5)	 	N/A	  	   0.73%(6)	 	 	8/30/2012	  	  	 	$113,000	  	
$300.0 Million Unsecured Term Loan	 	N/A	  	   2.69%(7)	 	 	11/22/2016	  	  	 	300,000	  	

Subtotal / Weighted Average (4)	 	 	  	2.15%	 	 	 	 	  	 	$413,000	  	

Total Debt - Principal Amount Outstanding / Weighted Average Stated Rate (4)	  	4.28%	 	 	 	 	  	 	$1,400,525	  	
 	 	
(1) All of Piedmont’s outstanding debt as of June 30, 2012, was interest-only debt.
(2) The nine property collateralized pool includes 1200 Crown Colony Drive, Braker Pointe III, 2 Gatehall Drive, One and Two Independence Square, 2120 West End Avenue, 200 and 400 Bridgewater Crossing, and Fairway Center II.
(3) The four property collateralized pool includes 1430 Enclave Parkway, Windy Point I and II, and 1055 East Colorado Boulevard.
(4) Weighted average is based on the total balance outstanding and interest rate at June 30, 2012.
(5) All of Piedmont’s outstanding debt as of June 30, 2012, was term debt with the exception of $113 million outstanding on our unsecured line of credit. Piedmont is close to finalizing a new $500 million unsecured revolving credit facility. The terms of the facility will be provided after the transaction has closed. The Company’s current revolver will be terminated prior to the effectiveness of the transaction.
(6) The interest rate on the $500 million unsecured line of credit is equal to the weighted average interest rate on all outstanding draws as of June 30, 2012. Piedmont may select from multiple interest rate options with each draw under this facility, including the prime rate and various length LIBOR locks. All LIBOR selections are subject to an additional spread (0.475% as of June 30, 2012) over the selected rate based on Piedmont’s current credit rating.
(7) The $300 million unsecured term loan has a stated variable rate; however, Piedmont entered into interest rate swap agreements which effectively fix the interest rate on this loan at 2.69% through its maturity date of November 22, 2016, assuming no credit rating change for the Company.
 
18

Piedmont Office Realty Trust, Inc.
Debt Analysis
As of June 30, 2012
Unaudited

 
 	 	 	 	 	 	 	 	 	
Debt Covenant Compliance (1)	  	        Required         	 	  	        Actual         	 	
 
Maximum Leverage Ratio	  	 	0.60	  	  	 	0.35	  	
 
Minimum Fixed Charge Coverage Ratio (2)	  	 	1.50	  	  	 	4.62	  	
 
Maximum Secured Indebtedness Ratio	  	 	0.40	  	  	 	0.25	  	
 
Minimum Unencumbered Leverage Ratio	  	 	1.60	  	  	 	4.81	  	
 
Minimum Unencumbered Interest Coverage Ratio(3)	  	 	1.75	  	  	 	19.68	  	
 
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 credit agreements is different from the fixed charge coverage ratio definition employed elsewhere within this report.
 
(3) Defined as net operating income for the trailing four quarters for unencumbered assets (including the company’s share of net operating income from unconsolidated interests that are unencumbered) less a $0.15 per square foot capital reserve divided by the company’s share of interest expense associated with unsecured financings only, as more particularly described in the credit agreements.
 
(4) Permitted investments are defined as unconsolidated interests, debt investments, unimproved land, and development projects. Investments in permitted investments shall not exceed 35% of total asset value.	  

   	

 	 	 	 	 	 	 	
Other Debt Coverage Ratios	  	Three months ended
June 30, 2012	  	Six months ended
June 30, 2012	  	Year ended
December 31, 2011        	
 
Net debt to core EBITDA	  	4.3 x	  	4.3 x	  	3.9 x	
 
Fixed charge coverage ratio (5)	  	4.8 x	  	4.7 x	  	4.8 x	
 
Interest coverage ratio(6)	  	4.8 x	  	4.7 x	  	4.8 x	
 
(5) Fixed charge coverage is calculated as Core EBITDA divided by the sum of interest expense, principal amortization, capitalized interest and preferred dividends. We had no capitalized interest, principal amortization or preferred dividends during the periods ended June 30, 2012 and December 31, 2011.
 
(6) Interest coverage ratio is calculated as Core EBITDA divided by the sum of interest expense and capitalized interest. We had no capitalized interest during the periods ended June 30, 2012 and December 31, 2011.	
 
19

Piedmont Office Realty Trust, Inc.
Tenant Diversification (1)
As of June 30, 2012
(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)	 	$73,357	 	13.6	 	1,596	 	9.2	
BP(5)	 	A / A2	 	1	 	2013	 	31,749	 	5.9	 	776	 	4.5	
US Bancorp	 	A / Aa3	 	3	 	2014 / 2023(6)	 	27,862	 	5.2	 	973	 	5.6	
State of New York	 	AA / Aa2	 	1	 	2019	 	19,839	 	3.7	 	481	 	2.8	
Independence Blue Cross	 	No rating available	 	1	 	2023	 	14,267	 	2.6	 	761	 	4.4	
Nestle	 	AA / Aa2	 	1	 	2015	 	13,818	 	2.6	 	392	 	2.2	
GE	 	AA+ / Aa3	 	2	 	2027	 	12,912	 	2.4	 	393	 	2.3	
Shaw	 	BBB- / Ba1	 	1	 	2018	 	9,836	 	1.8	 	313	 	1.8	
City of New York	 	AA / Aa2	 	1	 	2020	 	9,403	 	1.7	 	313	 	1.8	
Lockheed Martin	 	A- / Baa1	 	3	 	2014	 	9,320	 	1.7	 	283	 	1.6	
DDB Needham	 	BBB+ / Baa1	 	1	 	2018	 	9,002	 	1.7	 	246	 	1.4	
KPMG	 	No rating available	 	2	 	2027	 	8,946	 	1.7	 	277	 	1.6	
Gallagher	 	No rating available	 	1	 	2018	 	8,013	 	1.5	 	307	 	1.8	
Gemini	 	A+ / A2	 	1	 	2021	 	7,304	 	1.4	 	205	 	1.2	
Caterpillar Financial	 	A / A2	 	1	 	2022	 	7,275	 	1.3	 	312	 	1.8	
Harvard University	 	AAA / Aaa	 	2	 	2017	 	6,652	 	1.2	 	105	 	0.6	
Raytheon	 	A- / A3	 	2	 	2019	 	6,555	 	1.2	 	440	 	2.5	
KeyBank	 	A- / A3	 	2	 	2016	 	6,383	 	1.2	 	210	 	1.2	
Edelman	 	No rating available	 	1	 	2024	 	6,094	 	1.1	 	178	 	1.0	
Harcourt	 	BBB+	 	1	 	2016	 	6,038	 	1.1	 	195	 	1.1	
Jones Lang LaSalle	 	BBB- / Baa2	 	1	 	2017	 	5,777	 	1.1	 	165	 	0.9	
Qwest Communications	 	BB / Baa3	 	1	 	2014	 	5,697	 	1.1	 	161	 	0.9	
First Data Corporation	 	B / B3	 	1	 	2020	 	5,691	 	1.1	 	195	 	1.1	
Archon Group	 	A- / A3	 	2	 	2018	 	5,455	 	1.0	 	235	 	1.3	
Other	 	 	 	 	 	Various	 	221,105	 	41.1	 	7,906	 	45.4	
Total	 	 	 	 	 	 	 	$538,350	 	100.0	 	17,418	 	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) Unless indicated otherwise, Lease Expiration represents the expiration year of the majority of the square footage leased by the tenant.
(4) There are several leases with several different agencies of the U.S. Government with expiration years ranging from 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 $8.9 million of Annualized Lease Revenue, expires in 2023. US Bancorp’s lease at US Bancorp Center for approximately 635,000 square feet, representing $18.9 million of Annualized Lease Revenue, expires in 2014.
 
20

Piedmont Office Realty Trust, Inc.
Tenant Credit Rating & Lease Distribution Information
As of June 30, 2012

 
 	 	 	 	 	 	 	 	 	
 Tenant Credit Rating (1)	  	Annualized Lease
Revenue ($’s in
thousands)	 	  	Percentage of
Annualized Lease
Revenue (%)	  	  	
    AAA / Aaa	  	 	$10,091	  	  	1.9	  	 	
    AA / Aa	  	 	175,513	  	  	32.6	  	 	
    A / A	  	 	107,326	  	  	20.0	  	 	
    BBB / Baa	  	 	69,070	  	  	12.8	  	 	
    BB / Ba	  	 	14,593	  	  	2.7	  	 	
    B / B	  	 	19,326	  	  	3.6	  	 	
    Below	  	 	1,248	  	  	0.2	  	 	
    Not rated (2)	  	 	141,183	  	  	26.2	  	 	
 	  	 	 	 	  	 	  	 	
    Total	  	 	$538,350	  	  	100.0	  	 	

Lease Distribution
As of June 30, 2012

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	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	  	185	  	34.7	  	 	$16,282	  	  	3.0	  	 	151	  	  	0.9	
2,501 - 10,000	  	140	  	26.3	  	 	25,172	  	  	4.7	  	 	755	  	  	4.3	
10,001 - 20,000	  	66	  	12.4	  	 	28,550	  	  	5.3	  	 	964	  	  	5.5	
20,001 - 40,000	  	60	  	11.2	  	 	52,140	  	  	9.7	  	 	1,738	  	  	10.0	
40,001 - 100,000	  	31	  	5.8	  	 	57,048	  	  	10.6	  	 	1,851	  	  	10.6	
Greater than 100,000	  	51	  	9.6	  	 	359,158	  	  	66.7	  	 	11,959	  	  	68.7	
 	
Total	  	533	  	100.0	  	 	$538,350	  	  	100.0	  	 	17,418	  	  	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 Independence Blue Cross, McKinsey & Company and KPMG.
 
21

Piedmont Office Realty Trust, Inc.
Leased Percentage Information
(in thousands)
 
Impact of Strategic Transactions on Leased Percentage
The Company’s stated long-term growth strategy includes the recycling of capital from certain stabilized or non-core assets into office properties located in focused concentration and opportunistic markets. Some of the recently acquired properties are value-add properties which are defined as low-occupancy properties acquired at attractive bases with earnings growth and capital appreciation potential achievable through leasing up such assets to a stabilized occupancy. Because the value-add properties have large vacancies, they negatively affect Piedmont’s overall leased percentage. In order to identify the effect they have on Piedmont’s overall leased percentage, the following information is being provided. The analysis below: 1) removes the impact of the value-add properties from Piedmont’s overall office portfolio total under the heading “Stabilized Portfolio Analysis”; 2) provides a year-over-year comparison of leased percentage on the same subset of properties under the heading “Same Store Analysis”; and 3) provides a year-over-year comparison of leased percentage on the same subset of stabilized properties under the heading “Same Store Stabilized Analysis”.

  	 	  	  	Three Months Ended June 30, 2012	 	  	  	  	Three Months Ended June 30, 2011	 	 	  	
 	 	 	  	 	 	 	  	 	  	 	 	 	 	 	
  	 	 	  	Leased Square
Footage	 	 	Rentable Square
Footage	 	 	Percent
Leased  (1)	 	  	 	  	Leased Square
Footage	 	 	Rentable Square
Footage	 	 	Percent
Leased  (1)	 	 	  	
 	 	 	  	 	 	 	  	 	  	 	 	 	 	 	
 	 	As of March 31, 20xx	  	 	17,403	  	 	 	20,617	  	 	 	84.4%	  	  	 	  	 	18,773	  	 	 	21,516	  	 	 	87.3%	  	 	 	
 	 	New leases	  	 	363	  	 	 	 	 	 	 	 	 	  	 	  	 	1,018	  	 	 	 	 	 	 	 	 	 	 	
 	 	Expired leases	  	 	(213	) 	 	 	 	 	 	 	 	 	  	 	  	 	(1,075	) 	 	 	 	 	 	 	 	 	 	 	
 	 	Other	  	 	10	  	 	 	10	  	 	 	 	 	  	 	  	 	(2	) 	 	 	11	  	 	 	 	 	 	 	
 	 	 	  	 	 	 	  	 	  	 	 	 	 	 	
 	 	Subtotal	  	 	17,563	  	 	 	20,627	  	 	 	85.1%	  	  	 	  	 	18,714	  	 	 	21,527	  	 	 	86.9%	  	 	 	
 	 	Acquisitions during period	  	 	 	 	 	 	 	 	 	 	 	 	  	 	  	 	147	  	 	 	290	  	 	 	 	 	 	 	
 	 	Dispositions during period	  	 	(145	) 	 	 	(145	) 	 	 	 	 	  	 	  	 	-    	  	 	 	-    	  	 	 	 	 	 	 	
 	 	As of June 30, 20xx (2) (3)	  	 	17,418	  	 	 	20,482	  	 	 	85.0%	  	  	 	  	 	18,861	  	 	 	21,817	  	 	 	86.5%	  	 	 	

 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	
  	 	  	  	Six Months Ended June 30, 2012	 	  	  	  	Six Months Ended June 30, 2011	 	 	  	
 	 	 	  	 	 	 	  	 	  	 	 	 	 	 	
  	 	 	  	Leased Square
Footage	 	 	Rentable Square
Footage	 	 	Percent
Leased (1)	 	  	 	  	Leased Square
Footage	 	 	Rentable Square
Footage	 	 	Percent
Leased (1)	 	 	  	
 	 	 	  	 	 	 	  	 	  	 	 	 	 	 	
 	 	As of December 31, 20xx	  	 	18,124	  	 	 	20,942	  	 	 	86.5%	  	  	 	  	 	18,214	  	 	 	20,408	  	 	 	89.2%	  	 	 	
 	 	New leases	  	 	984	  	 	 	 	 	 	 	 	 	  	 	  	 	1,814	  	 	 	 	 	 	 	 	 	 	 	
 	 	Expired leases	  	 	(1,223	) 	 	 	 	 	 	 	 	 	  	 	  	 	(1,979	) 	 	 	 	 	 	 	 	 	 	 	
 	 	Other	  	 	3	  	 	 	10	  	 	 	 	 	  	 	  	 	(3	) 	 	 	7	  	 	 	 	 	 	 	
 	 	 	  	 	 	 	  	 	  	 	 	 	 	 	
 	 	Subtotal	  	 	17,888	  	 	 	20,952	  	 	 	85.4%	  	  	 	  	 	18,046	  	 	 	20,415	  	 	 	88.4%	  	 	 	
 	 	Acquisitions during period	  	 	-    	  	 	 	-    	  	 	 	 	 	  	 	  	 	815	  	 	 	1,402	  	 	 	 	 	 	 	
 	 	Dispositions during period	  	 	(470	) 	 	 	(470	) 	 	 	 	 	  	 	  	 	-    	  	 	 	-    	  	 	 	 	 	 	 	
 	 	As of June 30, 20xx (2) (3)	  	 	17,418	  	 	 	20,482	  	 	 	85.0%	  	  	 	  	 	18,861	  	 	 	21,817	  	 	 	86.5%	  	 	 	

 	 	 	 	 	 	 	 	 	 	
 	 	Stabilized Portfolio Analysis	  	 	 	 	 	 	 	 	 	 	 	 	  	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Less value-add properties (4)	  	 	(627	) 	 	 	(1,432	) 	 	 	43.8%	  	  	 	  	 	(701	) 	 	 	(1,406	) 	 	 	49.9%	  	 	 	
 	 	Stabilized Total (2) (3)	  	 	16,791	  	 	 	19,050	  	 	 	88.1%	  	  	 	  	 	18,160	  	 	 	20,411	  	 	 	89.0%	  	 	 	

 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	
 	 	Same Store Analysis	  	 	 	 	 	 	 	 	 	 	 	 	  	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Less acquisitions/dispositions after June 30, 2011 (4) (5)	  	 	(500	) 	 	 	(616	) 	 	 	81.2%	  	  	 	  	 	(1,830	) 	 	 	(1,969	) 	 	 	92.9%	  	 	 	
 	 	Same Store Total (2) (3) (6)	  	 	16,918	  	 	 	19,866	  	 	 	85.2%	  	  	 	  	 	17,031	  	 	 	19,848	  	 	 	85.8%	  	 	 	
 	 	 	  	 	 	 	  	 	  	 	 	 	 	 	
 	 	Same Store Stabilized Analysis	  	 	 	 	 	 	 	 	 	 	 	 	  	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Less value-add same store properties (4)	  	 	(688	) 	 	 	(1,406	) 	 	 	48.9%	  	  	 	  	 	(701	) 	 	 	(1,406	) 	 	 	49.9%	  	 	 	
 	 	Same Store Stabilized Total (2) (3)	  	 	16,230	  	 	 	18,460	  	 	 	87.9%	  	  	 	  	 	16,330	  	 	 	18,442	  	 	 	88.5%	  	 	 	

 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	
 
(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 2012 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, D.C. As of June 30, 2012, the total short-term space amounts to approximately 63,000 square feet and it will be occupied until an estimated date of September 30, 2013.
(4) For additional information on acquisitions/dispositions completed during the last year and value-add properties, please refer to pages 32 and 33, respectively.
(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) Excluding executed but not commenced leases for currently vacant spaces, comprising approximately 579,000 square feet for the current period and 603,000 square feet for the prior period, Piedmont’s same store commenced leased percentage was 82.2% and 82.8%, respectively.
 
22

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended June 30, 2012	 	

 	 	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	 	 	450	  	 	 	76	% 	 	 	2.2	% 	 	 	(16.1	%) 	 	 	(8.8	%) 	
 	 	 	 	 	 	
Leases executed for spaces excluded from analysis (5)	 	 	145	  	 	 	24	% 	 	 	 	 	 	 	 	 	 	 	 	 	

 	  	Six Months Ended June 30, 2012	 	

 	  	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	  	 	805	  	  	 	77	% 	 	 	3.9	% 	 	 	(11.3	%) 	 	 	(5.3	%) 	
 	 	 	 	 	 	
Leases executed for spaces excluded from analysis (5)	  	 	236	  	  	 	23	% 	 	 	 	 	 	 	 	 	 	 	 	 	

(1) The population analyzed consists of consolidated 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) with lease terms greater than one year. Spaces with downtime 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, unless the Company is notified otherwise by the tenant. This assumption is made based upon the historical tenant improvement allowance usage patterns of the Company’s tenants.
(5) Represents leases signed at our consolidated office assets that do not qualify for inclusion in the analysis primarily because the spaces for which the new leases were signed had been vacant for greater than one year. Leases signed with Piedmont entities are excluded from the analysis.
 
23

Piedmont Office Realty Trust, Inc.
Lease Expiration Schedule
As of June 30, 2012
(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	  	3,064	  	15.0	  	$0	  	0.0	  	N/A	
2012(2)	  	20,934	  	3.9	  	754	  	3.7	  	6,949	  	1.3	  	33.2	
2013	  	66,338	  	12.3	  	1,540	  	7.5	  	22,190	  	4.1	  	33.4	
2014	  	51,812	  	9.6	  	1,493	  	7.3	  	3,572	  	0.7	  	6.9	
2015	  	43,884	  	8.2	  	1,551	  	7.6	  	33	  	0.0	  	0.1	
2016	  	29,390	  	5.5	  	1,025	  	5.0	  	1,435	  	0.3	  	4.9	
2017	  	37,803	  	7.0	  	1,196	  	5.8	  	1,845	  	0.3	  	4.9	
2018	  	51,593	  	9.6	  	1,726	  	8.4	  	8,733	  	1.6	  	16.9	
2019	  	47,332	  	8.8	  	1,777	  	8.7	  	19,839	  	3.7	  	41.9	
2020	  	25,566	  	4.8	  	992	  	4.8	  	9,403	  	1.7	  	36.8	
2021	  	14,447	  	2.7	  	502	  	2.5	  	0	  	0.0	  	0.0	
2022	  	21,748	  	4.0	  	711	  	3.5	  	0	  	0.0	  	0.0	
2023	  	37,626	  	7.0	  	1,627	  	7.9	  	0	  	0.0	  	0.0	
2024	  	22,225	  	4.1	  	694	  	3.4	  	0	  	0.0	  	0.0	
2025	  	7,258	  	1.3	  	295	  	1.4	  	0	  	0.0	  	0.0	
Thereafter	  	60,394	  	11.2	  	1,535	  	7.5	  	28,953	  	5.4	  	47.9	

Total / Weighted Average	  	$538,350	  	100.0	  	20,482	  	100.0	  	$102,952	  	19.1	  	 	

(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 10,600 square feet and Annualized Lease Revenue of $364,996, are assigned a lease expiration date of a year and a day beyond the period end date. Includes leases with an expiration date of June 30, 2012 aggregating 10,251 square feet and Annualized Lease Revenue of $757,275.
 
24

Piedmont Office Realty Trust, Inc.
Lease Expirations by Quarter
As of June 30, 2012
(in thousands)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Q3 2012 (1)	  	Q4 2012	  	Q1 2013	  	Q2 2013	
 	  	Expiring
Square
Footage	  	Expiring Lease
Revenue  (2)	  	Expiring
Square
Footage	  	Expiring Lease
Revenue  (2)	  	Expiring
Square
Footage	  	Expiring Lease
Revenue  (2)	  	Expiring
Square
Footage	  	Expiring Lease
Revenue  (2)	

Atlanta	  	20	  	$405	  	47	  	$916	  	0	  	$0	  	8	  	$267	
Austin	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	
Boston	  	0	  	0	  	4	  	189	  	0	  	32	  	0	  	0	
Central & South Florida	  	0	  	0	  	4	  	113	  	0	  	0	  	0	  	0	
Chicago	  	83	  	2,598	  	15	  	481	  	47	  	1,681	  	43	  	1,267	
Cleveland	  	3	  	0	  	102	  	1,580	  	0	  	0	  	0	  	0	
Dallas	  	0	  	4	  	16	  	352	  	0	  	0	  	5	  	134	
Denver	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	
Detroit	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	
Houston	  	0	  	0	  	11	  	345	  	0	  	0	  	0	  	0	
Los Angeles	  	0	  	1	  	43	  	1,748	  	2	  	50	  	47	  	1,523	
Minneapolis	  	3	  	112	  	5	  	115	  	16	  	524	  	5	  	160	
Nashville	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	
New York	  	8	  	323	  	150	  	3,318	  	11	  	306	  	5	  	124	
Philadelphia	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	
Phoenix	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	
Portland	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	
Washington, D.C.(3)	  	230	  	10,503	  	10	  	516	  	343	  	21,357	  	71	  	330	

Total / Weighted Average (4)	  	347	  	$13,946	  	407	  	$9,673	  	419	  	$23,950	  	184	  	$3,805	

 
(1) Includes leases with an expiration date of June 30, 2012 aggregating 10,251 square feet and Expiring Lease Revenue of $341,508. No such adjustments are made to other periods presented.
(2) Expiring lease revenue is calculated as expiring square footage multiplied by the gross rent per square foot of the tenant currently leasing the space.
(3) Approximately 220,000 square feet and $10.0 million of expiring lease revenue in the third quarter of 2012 is related to the lease with the United States of America (National Park Service), which is expected to hold over.
(4) Total expiring lease revenue in any given year will not tie to the expiring Annualized Lease Revenue presented on the Lease Expiration Schedule on the previous page as the Lease Expiration Schedule accounts for the revenue effects of newly signed leases. Reflected herein are expiring revenues based on in place rental rates.
 
25

Piedmont Office Realty Trust, Inc.
Lease Expirations by Year
As of June 30, 2012
(in thousands)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	12/31/2012 (1)	  	12/31/2013	  	12/31/2014	  	12/31/2015	  	12/31/2016	
 	  	 	  	 	  	 	  	 	  	 	
 	  	Expiring
Square
  Footage  	  	  Expiring Lease  
Revenue  (2)	  	Expiring
Square
  Footage  	  	  Expiring Lease  
Revenue  (2)	  	Expiring
Square
  Footage  	  	  Expiring Lease  
Revenue  (2)	  	Expiring
Square
  Footage  	  	  Expiring Lease  
Revenue  (2)	  	Expiring
Square
  Footage  	  	  Expiring Lease  
Revenue  (2)	
 	  	 	  	 	  	 	  	 	  	 	
Atlanta	  	67	  	$1,321	  	19	  	$582	  	29	  	$623	  	29	  	$504	  	18	  	$194	
Austin	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	195	  	6,042	
Boston	  	4	  	189	  	0	  	32	  	27	  	1,884	  	135	  	2,791	  	3	  	185	
Central & South Florida	  	4	  	113	  	22	  	568	  	18	  	458	  	17	  	388	  	65	  	1,592	
Chicago	  	98	  	3,079	  	621	  	24,188	  	29	  	3,516	  	187	  	5,130	  	82	  	2,381	
Cleveland	  	105	  	1,580	  	10	  	218	  	0	  	0	  	0	  	0	  	13	  	294	
Dallas	  	16	  	356	  	18	  	455	  	41	  	1,010	  	287	  	6,417	  	7	  	150	
Denver	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	156	  	2,919	
Detroit	  	0	  	0	  	86	  	750	  	6	  	124	  	132	  	3,890	  	31	  	678	
Houston	  	11	  	345	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	17	
Los Angeles	  	43	  	1,749	  	57	  	1,869	  	5	  	1,550	  	428	  	14,882	  	88	  	2,637	
Minneapolis	  	8	  	227	  	48	  	1,586	  	687	  	18,841	  	103	  	3,656	  	33	  	1,039	
Nashville	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	
New York	  	158	  	3,641	  	39	  	1,632	  	96	  	4,028	  	66	  	2,401	  	280	  	8,988	
Philadelphia	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	
Phoenix	  	0	  	0	  	0	  	0	  	0	  	0	  	132	  	1,947	  	0	  	0	
Portland	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	
Washington, D.C.(3)	  	240	  	11,019	  	620	  	31,233	  	555	  	19,226	  	35	  	1,718	  	54	  	2,388	

Total / Weighted Average (4)	  	754	  	$23,619	  	1,540	  	$63,113	  	1,493	  	$51,260	  	1,551	  	$43,724	  	1,025	  	$29,504	

 
(1) Includes leases with an expiration date of June 30, 2012 aggregating 10,251 square feet and Expiring Lease Revenue of $341,508. No such adjustments are made to other periods presented.
(2) Expiring lease revenue is calculated as expiring square footage multiplied by the gross rent per square foot of the tenant currently leasing the space.
(3) Approximately 220,000 square feet and $10.0 million of expiring lease revenue in 2012 is related to the lease with the United States of America (National Park Service), which is expected to hold over.
(4) Total expiring lease revenue in any given year will not tie to the expiring Annualized Lease Revenue presented on the Lease Expiration Schedule on page 24 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 & Commitments
For the quarter ended June 30, 2012
Unaudited ($ in thousands)

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	
 	 	 	  	For the Three Months Ended	 	 	 	
 	 	 	  	 	 	 	 	 	
 	 	 	  	            6/30/2012            	 	  	3/31/2012            	 	  	12/31/2011            	 	  	9/30/2011            	 	 	6/30/2011            	 	 	 	
 	 	 	  	 	 	 	 	 	
 	 	Non-incremental	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	
 	 	Bldg / construction / dev	  	 	$1,959	  	  	 	$1,426	  	  	 	$3,650	  	  	 	$1,063	  	 	 	$1,315	  	 	 	
 	 	Tenant improvements	  	 	4,809	  	  	 	5,367	  	  	 	8,463	  	  	 	4,748	  	 	 	7,367	  	 	 	
 	 	Leasing costs	  	 	11,013	  	  	 	1,273	  	  	 	3,279	  	  	 	8,718	  	 	 	4,667	  	 	 	
 	 	 	  	 	 	 	 	 	
 	 	Total non-incremental	  	 	17,781	  	  	 	8,066	  	  	 	15,392	  	  	 	14,529	  	 	 	13,349	  	 	 	
 	 	Incremental	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	
 	 	Bldg / construction / dev	  	 	5,721	  	  	 	2,241	  	  	 	2,040	  	  	 	1,646	  	 	 	983	  	 	 	
 	 	Tenant improvements	  	 	12,044	  	  	 	5,938	  	  	 	10,862	  	  	 	7,154	  	 	 	4,770	  	 	 	
 	 	Leasing costs	  	 	1,687	  	  	 	1,925	  	  	 	12,791	  	  	 	1,464	  	 	 	1,372	  	 	 	
 	 	 	  	 	 	 	 	 	
 	 	Total incremental	  	 	19,452	  	  	 	10,104	  	  	 	25,693	  	  	 	10,264	  	 	 	7,125	  	 	 	
 	 	 	  	 	 	 	 	 	
 	 	Total capital expenditures	  	 	$37,233	  	  	 	$18,170	  	  	 	$41,085	  	  	 	$24,793	  	 	 	$20,474	  	 	 	

 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	

 	 	Tenant improvement commitments (1)	  	 	 	 	 	 	 	
 	 	Tenant improvement commitments outstanding as of March 31, 2012	  	 	 	$137,280	  	 	 	
 	 	New tenant improvement commitments related to leases executed during period	  	 	 	15,589	  	 	 	
 	 	Tenant improvement expenditures	  	  	 	(16,853	) 	 	 	 	 	 	 	
 	 	Less: Tenant improvement expenditures fulfilled through accrued liabilities already presented on Piedmont’s balance sheet, expired commitments or other adjustments	   	  	 	        (28	) 	 	 	 	 	 	 	
 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	
 	 	Tenant improvement commitments fulfilled, expired or other adjustments	  	 	 	(16,881	) 	 	 	
 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	
 	 	Total as of June 30, 2012	  	  	 	 	 	  	 	 	 	  	 	 	 	 	 	$135,988	  	 	 	
 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	
 	 	Tenant improvement commitments - Incremental capital when fulfilled	  	 	 	$38,798	  	 	 	
 	 	Tenant improvement commitments - Non-incremental capital when fulfilled	  	 	 	97,190	  	 	 	
 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	
 	 	Total as of June 30, 2012	  	 	            $	135,988	  	 	 	

 
 
NOTE: The information presented on this page is for all consolidated assets, inclusive of our industrial properties.
(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 $75.8 million, or 56% of total outstanding commitments.
 
27

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	  	 	  	  	For the Year Ended	
 	 	 	 	For the Three Months Ended    
June 30, 2012	 	For the Six Months Ended    
June 30, 2012	  	2011	  	2010	  	2009	
Renewal Leases	 	 	 	 	  	 	  	 	  	 	
 	 	Number of leases	 	13	 	21	  	48	  	37	  	34    	
 	 	Square feet	 	233,673	 	515,585	  	2,280,329	  	1,241,481	  	1,568,895    	
 	 	Tenant improvements per square foot (1)	 	$14.24	 	$6.45	  	$33.29	  	$14.40	  	$12.01    	
 	 	Leasing commissions per square foot	 	$8.04	 	$4.60	  	$9.97	  	$8.40	  	$5.51    	
 	 	Total per square foot	 	$22.28	 	$11.05	  	$43.26	  	$22.80	  	$17.52    	
 	 	 	 	 	 	 	
 	 	Tenant improvements per square foot per year of lease term	 	$2.43	 	$1.45	  	$3.93	  	$1.74	  	$1.44    	
 	 	Leasing commissions per square foot per year of lease term	 	$1.37	 	$1.03	  	$1.18	  	$1.02	  	$0.66    	
 	 	Total per square foot per year of lease term (2)	 	$3.80	 	$2.48	  	$5.11	  	$2.76	  	$2.10    	
 	 	 	 	 	 	
  New Leases	 	 	 	 	  	 	  	 	  	 	
 	 	Number of leases	 	27	 	44	  	76	  	56	  	28    	
 	 	Square feet	 	361,675	 	525,184	  	1,588,271	  	866,212	  	700,295    	
 	 	Tenant improvements per square foot (1)	 	$45.89	 	$37.94	  	$41.21	  	$32.65	  	$45.04    	
 	 	Leasing commissions per square foot	 	$14.95	 	$16.55	  	$15.38	  	$11.28	  	$17.12    	
 	 	Total per square foot	 	$60.84	 	$54.49	  	$56.59	  	$43.93	  	$62.16    	
 	 	 	 	 	 	 	
 	 	Tenant improvements per square foot per year of lease term	 	$4.63	 	$4.06	  	$4.19	  	$4.16	  	$4.05    	
 	 	Leasing commissions per square foot per year of lease term	 	$1.51	 	$1.77	  	$1.57	  	$1.44	  	$1.54    	
 	 	Total per square foot per year of lease term	 	$6.14	 	$5.83	  	$5.76	  	$5.60	  	$5.59    	
 	 	 	 	 	 	
  Total	 	 	 	 	  	 	  	 	  	 	
 	 	Number of leases	 	40	 	65	  	124	  	93	  	62    	
 	 	Square feet	 	595,348	 	1,040,769	  	3,868,600	  	2,107,693	  	2,269,190    	
 	 	Tenant improvements per square foot (1)	 	$33.47	 	$22.34	  	$36.54	  	$21.90	  	$22.21    	
 	 	Leasing commissions per square foot	 	$12.24	 	$10.63	  	$12.19	  	$9.59	  	$9.09    	
 	 	Total per square foot	 	$45.71	 	$32.97	  	$48.73	  	$31.49	  	$31.30    	
 	 	 	 	 	 	 	
 	 	Tenant improvements per square foot per year of lease term	 	$4.02	 	$3.22	  	$4.05	  	$2.70	  	$2.42    	
 	 	Leasing commissions per square foot per year of lease term	 	$1.47	 	$1.53	  	$1.35	  	$1.18	  	$0.99    	
 	 	Total per square foot per year of lease term	 	$5.49	 	$4.75	  	$5.40	  	$3.88	  	$3.41    	
NOTE: This information is presented for our consolidated office assets only. Beginning with 2012, all leases for consolidated office properties, including short-term leases (leases for a term of less than one year), are included in the information presented above. Prior to 2012, short-term leases were excluded from this information. Management believes that short-term leases completed prior to 2012 would have an immaterial impact to the data presented herein.
(1) For leases under which a tenant may use, at its discretion, a portion of its tenant improvement allowance for expenses other than those related to improvements to its space, an assumption is made that the tenant elects to use any such portion of its tenant improvement allowance for improvements to its space prior to the commencement of its lease, unless the Company is notified otherwise by the tenant. This assumption is made based upon the historical tenant improvement allowance usage patterns of the Company’s tenants.
(2) During 2011, we completed two large, 15-year lease renewals with significant capital commitments: NASA at Two Independence Square in Washington, D.C. and GE at 500 West Monroe Street in Chicago, IL. If the costs associated with these renewals were to be removed from the average committed capital cost calculation, the average committed capital cost per square foot per year of lease term for renewal leases in 2011 would be $2.80.
 
28

Piedmont Office Realty Trust, Inc.
Geographic Diversification
As of June 30, 2012

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
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  
(%)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Washington, D.C.	  	14	  	 	  	$120,785	  	 	  	22.4	  	 	  	3,055	  	 	  	14.9	  	 	  	2,803	  	 	  	91.8  	
Chicago	  	6	  	 	  	118,879	  	 	  	22.1	  	 	  	4,772	  	 	  	23.3	  	 	  	3,438	  	 	  	72.0  	
New York	  	7	  	 	  	80,250	  	 	  	14.9	  	 	  	2,658	  	 	  	13.0	  	 	  	2,476	  	 	  	93.2  	
Minneapolis	  	4	  	 	  	43,781	  	 	  	8.1	  	 	  	1,613	  	 	  	7.9	  	 	  	1,480	  	 	  	91.8  	
Los Angeles	  	4	  	 	  	27,294	  	 	  	5.1	  	 	  	999	  	 	  	4.9	  	 	  	799	  	 	  	80.0  	
Boston	  	6	  	 	  	25,804	  	 	  	4.8	  	 	  	1,023	  	 	  	5.0	  	 	  	1,013	  	 	  	99.0  	
Dallas	  	7	  	 	  	24,942	  	 	  	4.6	  	 	  	1,276	  	 	  	6.2	  	 	  	1,139	  	 	  	89.3  	
Detroit	  	4	  	 	  	17,235	  	 	  	3.2	  	 	  	930	  	 	  	4.5	  	 	  	779	  	 	  	83.8  	
Atlanta	  	6	  	 	  	15,258	  	 	  	2.8	  	 	  	1,042	  	 	  	5.1	  	 	  	639	  	 	  	61.3  	
Philadelphia	  	1	  	 	  	14,267	  	 	  	2.7	  	 	  	761	  	 	  	3.7	  	 	  	761	  	 	  	100.0  	
Houston	  	2	  	 	  	13,552	  	 	  	2.5	  	 	  	463	  	 	  	2.3	  	 	  	434	  	 	  	93.7  	
Phoenix	  	4	  	 	  	9,074	  	 	  	1.7	  	 	  	564	  	 	  	2.7	  	 	  	477	  	 	  	84.6  	
Central & South Florida	  	4	  	 	  	7,854	  	 	  	1.5	  	 	  	476	  	 	  	2.3	  	 	  	337	  	 	  	70.8  	
Nashville	  	1	  	 	  	7,275	  	 	  	1.4	  	 	  	312	  	 	  	1.5	  	 	  	312	  	 	  	100.0  	
Austin	  	1	  	 	  	6,042	  	 	  	1.1	  	 	  	195	  	 	  	1.0	  	 	  	195	  	 	  	100.0  	
Cleveland	  	2	  	 	  	3,139	  	 	  	0.6	  	 	  	187	  	 	  	0.9	  	 	  	180	  	 	  	96.3  	
Denver	  	1	  	 	  	2,919	  	 	  	0.5	  	 	  	156	  	 	  	0.8	  	 	  	156	  	 	  	100.0  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total / Weighted Average	  	74	  	 	  	$538,350	  	 	  	100.0	  	 	  	20,482	  	 	  	100.0	  	 	  	17,418	  	 	  	85.0  	

 
29

Piedmont Office Realty Trust, Inc.
Geographic Diversification by Location Type
As of June 30, 2012

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	CBD / URBAN INFILL	  	 	 	SUBURBAN	  	 	 	TOTAL	
Location	 	State	 	Number
of
Properties	 	Percentage
of
Annualized
Lease
Revenue
(%)	 	Rentable
Square
Footage (in
Thousands)	 	Percentage
of
Rentable
Square
Footage
(%)	 	 	  	 	 	Number
of
Properties	 	Percentage
of
Annualized
Lease
Revenue
(%)	 	Rentable
Square
Footage (in
Thousands)	 	Percentage
of
Rentable
Square
Footage
(%)	  	 	 	Number
of
Properties	 	Percentage
of
Annualized
Lease
Revenue
(%)	 	Rentable
Square
Footage (in
Thousands)	 	Percentage
of
Rentable
Square
Footage
(%)	
 	 	 	 	 	 	 	
Washington, D.C.	 	DC, VA, MD	 	9	 	20.0	 	2,574	 	12.6	 	 	  	 	 	5	 	2.4	 	481	 	2.3	  	 	 	14	 	22.4	 	3,055	 	14.9	
Chicago	 	IL	 	2	 	18.6	 	3,647	 	17.8	 	 	  	 	 	4	 	3.5	 	1,125	 	5.5	  	 	 	6	 	22.1	 	4,772	 	23.3	
New York	 	NY, NJ	 	1	 	7.4	 	1,027	 	5.0	 	 	  	 	 	6	 	7.5	 	1,631	 	8.0	  	 	 	7	 	14.9	 	2,658	 	13.0	
Minneapolis	 	MN	 	1	 	5.2	 	928	 	4.6	 	 	  	 	 	3	 	2.9	 	685	 	3.3	  	 	 	4	 	8.1	 	1,613	 	7.9	
Los Angeles	 	CA	 	3	 	4.5	 	865	 	4.2	 	 	  	 	 	1	 	0.6	 	134	 	0.7	  	 	 	4	 	5.1	 	999	 	4.9	
Boston	 	MA	 	2	 	2.2	 	173	 	0.9	 	 	  	 	 	4	 	2.6	 	850	 	4.1	  	 	 	6	 	4.8	 	1,023	 	5.0	
Dallas	 	TX	 	0	 	0.0	 	0	 	0.0	 	 	  	 	 	7	 	4.6	 	1,276	 	6.2	  	 	 	7	 	4.6	 	1,276	 	6.2	
Detroit	 	MI	 	1	 	1.8	 	493	 	2.4	 	 	  	 	 	3	 	1.4	 	437	 	2.1	  	 	 	4	 	3.2	 	930	 	4.5	
Atlanta	 	GA	 	2	 	1.7	 	558	 	2.7	 	 	  	 	 	4	 	1.1	 	484	 	2.4	  	 	 	6	 	2.8	 	1,042	 	5.1	
Philadelphia	 	PA	 	1	 	2.7	 	761	 	3.7	 	 	  	 	 	0	 	0.0	 	0	 	0.0	  	 	 	1	 	2.7	 	761	 	3.7	
Houston	 	TX	 	0	 	0.0	 	0	 	0.0	 	 	  	 	 	2	 	2.5	 	463	 	2.3	  	 	 	2	 	2.5	 	463	 	2.3	
Phoenix	 	AZ	 	0	 	0.0	 	0	 	0.0	 	 	  	 	 	4	 	1.7	 	564	 	2.7	  	 	 	4	 	1.7	 	564	 	2.7	
Central & South Florida	 	FL	 	0	 	0.0	 	0	 	0.0	 	 	  	 	 	4	 	1.5	 	476	 	2.3	  	 	 	4	 	1.5	 	476	 	2.3	
Nashville	 	TN	 	1	 	1.4	 	312	 	1.5	 	 	  	 	 	0	 	0.0	 	0	 	0.0	  	 	 	1	 	1.4	 	312	 	1.5	
Austin	 	TX	 	0	 	0.0	 	0	 	0.0	 	 	  	 	 	1	 	1.1	 	195	 	1.0	  	 	 	1	 	1.1	 	195	 	1.0	
Cleveland	 	OH	 	0	 	0.0	 	0	 	0.0	 	 	  	 	 	2	 	0.6	 	187	 	0.9	  	 	 	2	 	0.6	 	187	 	0.9	
Denver	 	CO	 	0	 	0.0	 	0	 	0.0	 	 	  	 	 	1	 	0.5	 	156	 	0.8	  	 	 	1	 	0.5	 	156	 	0.8	
 	 	 	 	 	 	 	
Total / Weighted Average	 	 	 	23	 	65.5	 	11,338	 	55.4	 	 	  	 	 	51	 	34.5	 	9,144	 	44.6	  	 	 	74	 	100.0	 	20,482	 	100.0	

30

Piedmont Office Realty Trust, Inc.
Industry Diversification
As of June 30, 2012

 	 	 	 	 	 	 	 	 	 	 	 	 	
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	  	$102,952	  	19.1	  	2,400	  	13.8	
Depository Institutions	  	13	  	2.9	  	49,922	  	9.3	  	1,732	  	9.9	
Business Services	  	64	  	14.5	  	40,467	  	7.5	  	1,411	  	8.1	
Petroleum Refining & Related Industries	  	1	  	0.2	  	31,749	  	5.9	  	776	  	4.4	
Nondepository Credit Institutions	  	15	  	3.4	  	31,363	  	5.8	  	1,104	  	6.3	
Engineering, Accounting, Research, Management & Related Services	  	29	  	6.6	  	30,827	  	5.7	  	938	  	5.4	
Insurance Carriers	  	22	  	5.0	  	30,357	  	5.6	  	1,366	  	7.8	
Communications	  	34	  	7.7	  	18,186	  	3.4	  	610	  	3.5	
Security & Commodity Brokers, Dealers, Exchanges & Services	  	28	  	6.3	  	17,369	  	3.3	  	620	  	3.6	
Educational Services	  	9	  	2.0	  	15,842	  	3.0	  	440	  	2.5	
Food & Kindred Products	  	6	  	1.4	  	14,775	  	2.7	  	428	  	2.5	
Transportation Equipment	  	4	  	0.9	  	13,838	  	2.6	  	518	  	3.0	
Fabricated Metal Products, Except Machinery & Transportation Equipment	  	4	  	0.9	  	12,278	  	2.3	  	418	  	2.4	
Electronic & Other Electrical Equipment & Components, Except Computer	  	9	  	2.0	  	11,422	  	2.1	  	518	  	3.0	
Measuring, Analyzing, And Controlling Instruments; Medical and Other Goods	  	8	  	1.8	  	11,364	  	2.1	  	659	  	3.8	
Other	  	189	  	42.8	  	105,639	  	19.6	  	3,480	  	20.0	
 	
Total	  	442	  	100.0	  	$538,350	  	100.0	  	17,418	  	100.0	

 
31

Piedmont Office Realty Trust, Inc.
Property Investment Activity
As of June 30, 2012

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Acquisitions Over Previous Eighteen Months	 	 	 	 	 	 	 	 	
 	
Property Name	 	Location	 	  Acquisition  
Date	 	Percent
  Ownership  
(%)	 	  Year Built  	 	Purchase
Price ($’s in  
thousands)	 	Rentable
Square
  Footage (in  
thousands)	 	Percent
Leased at
  Acquisition  
(%)	
 	
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	 	49	
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	
400 TownPark	 	Lake Mary, FL	 	11/10/2011	 	100	 	2008	 	23,865	 	176	 	19	
Gavitello Land Parcels	 	Atlanta, GA	 	6/28/2012	 	100	 	N/A	 	2,500	 	N/A	 	N/A	

 	 	 	 	 	 	 	 	 	 	$391,325	 	2,018	 	55	

Dispositions Over Previous Eighteen Months	 	 	 	 	 	 	 	 	
 	
Property Name	 	Location	 	  Disposition  
Date	 	Percent
  Ownership  
(%)	 	  Year Built  	 	Sale Price ($’s  
in thousands)	 	Rentable
Square
  Footage (in  
thousands)	 	Percent
Leased at
  Disposition  
(%)	
 	
360 Interlocken Boulevard (2)	 	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 (2)	 	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	
35 West Wacker Drive (2)	 	Chicago, IL	 	12/15/2011	 	96.5	 	1989	 	401,000	 	1,118	 	100	
Willamette	 	Beaverton, OR	 	3/19/2012	 	100	 	1988	 	7,050	 	73	 	100	
Rogue	 	Beaverton, OR	 	3/19/2012	 	100	 	1998	 	13,550	 	105	 	100	
Deschutes (3)	 	Beaverton, OR	 	3/19/2012	 	100	 	1989	 	7,150	 	73	 	50	
Rhein	 	Beaverton, OR	 	3/19/2012	 	100	 	1990	 	10,250	 	74	 	100	
Portland Land Parcels	 	Beaverton, OR	 	3/19/2012	 	100	 	N/A	 	5,942	 	N/A	 	N/A	
26200 Enterprise Way	 	Lake Forest, CA	 	5/31/2012	 	100	 	2000	 	28,250	 	145	 	100	

 	 	 	 	 	 	 	 	 	 	$557,417	 	2,118	 	87	
 	 	 	 	 	 	 	 	 	 	 	
(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 represents the estimated fair value of the real estate assets comprising the property as of the date of the transaction. Percent leased at acquisition reflects the space leased by Marsh USA as vacant, as the tenant had already announced plans to vacate prior to Piedmont’s assumption of ownership of the asset.
(2) Sale price and rentable square footage are gross figures and have not been adjusted for Piedmont’s ownership percentage.
(3) The property would have been 100% leased upon sale had Piedmont not exercised a landlord termination option for one full floor in anticipation of a potential lease with Nike, Inc., the ultimate purchaser of the property.
 
32

Piedmont Office Realty Trust, Inc.
Value-Add Activity
As of June 30, 2012

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	
500 West Monroe Street (1)	 	Chicago, IL	  	3/31/2011	  	100	  	1991	  	227,500	  	962	  	54	  	49	
The Medici	 	Atlanta, GA	  	6/7/2011	  	100	  	2008	  	13,210	  	152	  	33	  	22	
400 TownPark	 	Lake Mary, FL	  	11/10/2011	  	100	  	2008	  	23,865	  	176	  	34	  	19	

 	 	 	  	 	  	 	  	 	  	$272,450	  	1,432	  	44	  	37	

Properties Removed From Value-Add Classification This Quarter	  	 	  	 	  	 	  	 	  	 	
 	
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
(%)	
 	
1200 Enclave Parkway	 	Houston, TX	  	3/30/2011	  	100	  	1999	  	$18,500	  	150	  	81	  	18	
(1) Property was acquired through the foreclosure of an equity ownership interest. Percent leased at acquisition reflects the space leased by Marsh USA as vacant, as the tenant had already announced plans to vacate prior to Piedmont’s assumption of ownership of the asset.
 
33

Piedmont Office Realty Trust, Inc.
Other Investments
As of June 30, 2012

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
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	  	 	  	$9,446	  	313.4	  	100	
110 Hidden Lake Circle	  	Duncan, SC	  	100	  	1987	  	 	  	15,441	  	474.0	  	100	
 	  	 	  	 	  	 	  	 	  	 	
 	  	 	  	 	  	 	  	 	  	$24,887	  	787.4	  	100	

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	  	$2,529	  	$4,456	  	68.3	  	91	
4685 Investment Drive	  	Troy, MI	  	55	  	2000	  	5,028	  	9,141	  	77.1	  	100	
5301 Maryland Way	  	Brentwood, TN	  	55	  	1989	  	10,662	  	19,382	  	201.2	  	100	
8560 Upland Drive	  	Parker, CO	  	72	  	2001	  	7,747	  	10,776	  	148.2	  	57	
Two Park Center	  	Hoffman Estates, IL	  	72	  	1999	  	11,055	  	15,377	  	193.7	  	39	
 	  	 	  	 	  	 	  	 	
 	  	 	  	 	  	 	  	$37,021	  	$59,132	  	688.5	  	72	

Land Parcels	  	Location	  	 	  	 	  	 	  	 	  	Acres	  	 	
 	
Gavitello	  	Atlanta, GA	  	 	  	 	  	 	  	 	  	2.0	  	 	
Enclave Parkway	  	Houston, TX	  	 	  	 	  	 	  	 	  	4.7	  	 	
Durham Avenue	  	South Plainfield, NJ	  	 	  	 	  	 	  	 	  	8.9	  	 	
State Highway 161	  	Irving, TX	  	 	  	 	  	 	  	 	  	4.5	  	 	
 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	
 	  	 	  	 	  	 	  	 	  	 	  	20.1	  	 	

34

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 38-40.
Adjusted Funds From Operations (“AFFO”): AFFO is calculated by deducting from Core FFO non-incremental capital expenditures and acquisition-related costs 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 gains or losses on the early extinguishment of debt, acquisition-related costs 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 and impairment losses, adding back depreciation and amortization on real estate assets, and after the same adjustments for unconsolidated partnerships and joint ventures. These adjustments can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates. FFO 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.

 
35

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.	
 
36

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	  	 	
 	 	 	 	
Michael Knott, CFA	  	Richard Moore	  	Chris Caton	  	 	
Green Street Advisors	  	RBC Capital Markets	  	Morgan Stanley	  	 	
660 Newport Center Drive, Suite 800	  	Arbor Court	  	555 California Street, 21st Floor	
Newport Beach, CA 92660	  	30575 Bainbridge Road, Suite 250	  	San Francisco, CA 94104	  	 	
Phone: (949) 640-8780	  	Solon, OH 44139	  	Phone: (415) 576-2637	  	 	
 	  	Phone: (440) 715-2646	  	 	  	 	
 	 	 	 	
Anthony Paolone, CFA	  	 	  	 	  	 	
JP Morgan	  	 	  	 	  	 	
277 Park Avenue	  	 	  	 	  	 	
New York, NY 10172	  	 	  	 	  	 	
Phone: (212) 622-6682	  	 	  	 	  	 	
 
37

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	 	Six Months Ended	 	
 	 	    6/30/2012    	 	 	    3/31/2012    	 	 	    12/31/2011    	 	 	    9/30/2011    	 	 	    6/30/2011    	 	 	    6/30/2012    	 	 	    6/30/2011    	 	
 	 	 	 	 	 	 	 	
Net income attributable to Piedmont	 	$	30,708 	  	 	$	37,227 	  	 	$	119,020 	  	 	$	51,026 	  	 	$	21,027 	  	 	$	67,935 	  	 	$	54,994 	  	
 	 	 	 	 	 	 	 	
Depreciation	 	 	28,033 	  	 	 	27,809 	  	 	 	27,287 	  	 	 	28,102 	  	 	 	27,879 	  	 	 	55,842 	  	 	 	55,033 	  	
Amortization	 	 	11,539 	  	 	 	12,840 	  	 	 	15,531 	  	 	 	16,616 	  	 	 	15,878 	  	 	 	24,379 	  	 	 	27,984 	  	
Impairment loss	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	
(Gain) / loss on sale of properties	 	 	(10,008)	  	 	 	(17,830)	  	 	 	(95,901)	  	 	 	(26,826)	  	 	 	(45)	  	 	 	(27,838)	  	 	 	(45)	  	
(Gain) / loss on consolidation of VIE	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	388 	  	 	 	-    	  	 	 	(1,532)	  	

Funds from operations	 	 	60,272 	  	 	 	60,046 	  	 	 	65,937 	  	 	 	68,918 	  	 	 	65,127 	  	 	 	120,318 	  	 	 	136,434 	  	
 	 	 	 	 	 	 	 	
Acquisition costs	 	 	84 	  	 	 	(3)	  	 	 	372 	  	 	 	285 	  	 	 	716 	  	 	 	81 	  	 	 	690 	  	
(Gain) / loss on extinguishment of debt	 	 	-    	  	 	 	-    	  	 	 	(1,039)	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	

Core funds from operations	 	 	60,356 	  	 	 	60,043 	  	 	 	65,270 	  	 	 	69,203 	  	 	 	65,843 	  	 	 	120,399 	  	 	 	137,124 	  	
 	 	 	 	 	 	 	 	
Depreciation of non real estate assets	 	 	108 	  	 	 	93 	  	 	 	77 	  	 	 	84 	  	 	 	168 	  	 	 	201 	  	 	 	338 	  	
Stock-based and other non-cash compensation expense	 	 	289 	  	 	 	334 	  	 	 	1,730 	  	 	 	1,111 	  	 	 	896 	  	 	 	623 	  	 	 	1,864 	  	
Deferred financing cost amortization	 	 	590 	  	 	 	803 	  	 	 	649 	  	 	 	879 	  	 	 	1,060 	  	 	 	1,392 	  	 	 	1,667 	  	
Amortization of fair market adjustments on notes payable	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	471 	  	 	 	942 	  	 	 	-    	  	 	 	942 	  	
Straight-line effects of lease revenue	 	 	(5,477)	  	 	 	(1,565)	  	 	 	(5,019)	  	 	 	(4,129)	  	 	 	(2,596)	  	 	 	(7,042)	  	 	 	(359)	  	
Amortization of lease related intangibles	 	 	(1,785)	  	 	 	(1,532)	  	 	 	(2,215)	  	 	 	(1,817)	  	 	 	(1,670)	  	 	 	(3,316)	  	 	 	(3,033)	  	
Income from amortization of discount on purchase of mezzanine loans	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	(484)	  	
Acquisition costs	 	 	(84)	  	 	 	3 	  	 	 	(372)	  	 	 	(285)	  	 	 	(716)	  	 	 	(81)	  	 	 	(690)	  	
 	 	 	 	 	 	 	 	
Non-incremental capital expenditures	 	 	(17,781)	  	 	 	(8,066)	  	 	 	(15,392)	  	 	 	(14,529)	  	 	 	(13,349)	  	 	 	(25,847)	  	 	 	(30,480)	  	

Adjusted funds from operations	 	$	36,216 	  	 	$	50,113 	  	 	$	44,728 	  	 	$	50,988 	  	 	$	50,578 	  	 	$	86,329 	  	 	$	106,889 	  	

38

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	 	Six Months Ended	 	
 	 	 	 	 	 	 	 	 	
 	 	    6/30/2012    	 	 	    3/31/2012    	 	 	    12/31/2011    	 	 	    9/30/2011    	 	 	    6/30/2011    	 	 	    6/30/2012    	 	 	    6/30/2011    	 	
 	 	 	 	 	 	 	 	
Net income attributable to Piedmont	 	$	30,708  	  	 	$	37,227  	  	 	$	119,020  	  	 	$	51,026  	  	 	$	21,027  	  	 	$	67,935  	  	 	$	54,994  	  	
 	 	 	 	 	 	 	 	
Net income attributable to noncontrolling interest	 	 	4  	  	 	 	4  	  	 	 	91  	  	 	 	135  	  	 	 	121  	  	 	 	8  	  	 	 	243  	  	
Interest expense	 	 	15,943  	  	 	 	16,537  	  	 	 	17,457  	  	 	 	17,804  	  	 	 	19,313  	  	 	 	32,480  	  	 	 	36,487  	  	
(Gain) / loss on extinguishment of debt	 	 	-      	  	 	 	-      	  	 	 	(1,039) 	  	 	 	-      	  	 	 	-      	  	 	 	-      	  	 	 	-      	  	
Depreciation	 	 	28,141  	  	 	 	27,902  	  	 	 	27,364  	  	 	 	28,186  	  	 	 	28,047  	  	 	 	56,043  	  	 	 	55,371  	  	
Amortization	 	 	11,539  	  	 	 	12,840  	  	 	 	15,531  	  	 	 	16,616  	  	 	 	15,878  	  	 	 	24,379  	  	 	 	27,984  	  	
Impairment loss	 	 	-      	  	 	 	-      	  	 	 	-      	  	 	 	-      	  	 	 	-      	  	 	 	-      	  	 	 	-      	  	
(Gain) / loss on sale of properties	 	 	(10,008) 	  	 	 	(17,830) 	  	 	 	(95,901) 	  	 	 	(26,826) 	  	 	 	(45) 	  	 	 	(27,838) 	  	 	 	(45) 	  	
(Gain) / loss on consolidation of VIE	 	 	-      	  	 	 	-      	  	 	 	-      	  	 	 	-      	  	 	 	388  	  	 	 	-      	  	 	 	(1,532) 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core EBITDA	 	 	76,327  	  	 	 	76,680  	  	 	 	82,523  	  	 	 	86,941  	  	 	 	84,729  	  	 	 	153,007  	  	 	 	173,502  	  	
 	 	 	 	 	 	 	 	
General & administrative expenses	 	 	4,866  	  	 	 	5,318  	  	 	 	6,241  	  	 	 	4,747  	  	 	 	7,392  	  	 	 	10,184  	  	 	 	14,096  	  	
Management fee revenue	 	 	(626) 	  	 	 	(574) 	  	 	 	(281) 	  	 	 	(110) 	  	 	 	(363) 	  	 	 	(1,199) 	  	 	 	(1,193) 	  	
Interest and other income	 	 	(305) 	  	 	 	(97) 	  	 	 	357  	  	 	 	74  	  	 	 	253  	  	 	 	(403) 	  	 	 	(3,206) 	  	
Lease termination income	 	 	(88) 	  	 	 	(123) 	  	 	 	(320) 	  	 	 	33  	  	 	 	(1,347) 	  	 	 	(212) 	  	 	 	(4,751) 	  	
Lease termination expense - straight line rent & acquisition intangibles write-offs	 	 	165  	  	 	 	99  	  	 	 	186  	  	 	 	260  	  	 	 	43  	  	 	 	264  	  	 	 	479  	  	
Straight-line effects of lease revenue	 	 	(5,642) 	  	 	 	(1,664) 	  	 	 	(5,180) 	  	 	 	(4,296) 	  	 	 	(2,639) 	  	 	 	(7,306) 	  	 	 	(667) 	  	
Net effect of amortization of above/(below) market in-place lease intangibles	 	 	(1,785) 	  	 	 	(1,532) 	  	 	 	(2,239) 	  	 	 	(1,911) 	  	 	 	(1,670) 	  	 	 	(3,316) 	  	 	 	(3,204) 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core net operating income - Cash Basis	 	 	72,912  	  	 	 	78,107  	  	 	 	81,287  	  	 	 	85,738  	  	 	 	86,398  	  	 	 	151,019  	  	 	 	175,056  	  	
 	 	 	 	 	 	 	 	
Net operating income from:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Acquisitions	 	 	(3,886) 	  	 	 	(3,150) 	  	 	 	(4,489) 	  	 	 	(3,393) 	  	 	 	(3,446) 	  	 	 	(7,036) 	  	 	 	(3,444) 	  	
Dispositions	 	 	(296) 	  	 	 	(1,395) 	  	 	 	(6,121) 	  	 	 	(7,445) 	  	 	 	(7,376) 	  	 	 	(1,692) 	  	 	 	(14,873) 	  	
Industrial properties	 	 	(245) 	  	 	 	(242) 	  	 	 	(242) 	  	 	 	(254) 	  	 	 	(242) 	  	 	 	(487) 	  	 	 	(479) 	  	
Unconsolidated joint ventures	 	 	(598) 	  	 	 	(590) 	  	 	 	(1,013) 	  	 	 	(818) 	  	 	 	(696) 	  	 	 	(1,188) 	  	 	 	(1,354) 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Same Store NOI - Cash Basis	 	$	67,887  	  	 	$	72,730  	  	 	$	69,422  	  	 	$	73,828  	  	 	$	74,638  	  	 	$	140,616  	  	 	$	154,906  	  	

39

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	 	Six Months Ended	 	
 	  	6/30/2012	 	 	3/31/2012	 	  	12/31/2011	 	  	9/30/2011	 	 	6/30/2011	 	 	6/30/2012	 	 	6/30/2011	 	
 	 	 	 	 	 	 	 	
Equity in Income of Unconsolidated JVs	  	  $	246	  	 	  $	170	  	  	  $	587	  	  	  $	485	  	 	  $	338	  	 	  $	416	  	 	  $	547	  	
 	 	 	 	 	 	 	 	
Interest expense	  	 	-  	  	 	 	-  	  	  	 	-  	  	  	 	-  	  	 	 	-  	  	 	 	-  	  	 	 	-  	  	
 	 	 	 	 	 	 	 	
Depreciation	  	 	300	  	 	 	296	  	  	 	293	  	  	 	296	  	 	 	300	  	 	 	596	  	 	 	602	  	
 	 	 	 	 	 	 	 	
Amortization	  	 	41	  	 	 	41	  	  	 	33	  	  	 	33	  	 	 	33	  	 	 	82	  	 	 	63	  	
 	 	 	 	 	 	 	 	
(Gain) / loss on sale of properties	  	 	-  	  	 	 	-  	  	  	 	-  	  	  	 	(71	) 	 	 	(45	) 	 	 	-  	  	 	 	(45	) 	

Core EBITDA	  	 	587	  	 	 	507	  	  	 	913	  	  	 	743	  	 	 	626	  	 	 	1,094	  	 	 	1,167	  	
 	 	 	 	 	 	 	 	
General & administrative expenses	  	 	(3	) 	 	 	57	  	  	 	49	  	  	 	29	  	 	 	27	  	 	 	54	  	 	 	102	  	
 	 	 	 	 	 	 	 	
Interest and other income	  	 	(21	) 	 	 	-  	  	  	 	-  	  	  	 	(1	) 	 	 	-  	  	 	 	(21	) 	 	 	-  	  	

Core net operating income (accrual basis)	  	 	563	  	 	 	564	  	  	 	962	  	  	 	771	  	 	 	653	  	 	 	1,127	  	 	 	1,269	  	
 	 	 	 	 	 	 	 	
Straight-line effects of lease revenue	  	 	35	  	 	 	26	  	  	 	51	  	  	 	47	  	 	 	43	  	 	 	61	  	 	 	85	  	
 	 	 	 	 	 	 	 	
Net effect of amortization of above/(below) market in-place lease intangibles	  	 	-  	  	 	 	-  	  	  	 	-  	  	  	 	-  	  	 	 	-  	  	 	 	-  	  	 	 	-  	  	

Core net operating income (cash basis)	  	  $	598	  	 	  $	590	  	  	  $	1,013	  	  	  $	818	  	 	  $	696	  	 	  $	1,188	  	 	  $	1,354	  	

40

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	 	Six Months Ended	 	
 	  	 	 	 	 	 	 	 	
 	  	6/30/2012	 	  	3/31/2012	 	  	12/31/2011	 	 	9/30/2011	 	 	6/30/2011	 	 	6/30/2012	 	  	6/30/2011	 	

Revenues:	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
Rental income	  	  $	          313	  	  	$	          1,273	  	  	$	          7,607	  	 	$	          8,895	  	 	$	        10,002	  	 	  $	          1,586	  	  	$	        20,001	  	
Tenant reimbursements	  	 	64	  	  	 	254	  	  	 	4,366	  	 	 	3,756	  	 	 	5,516	  	 	 	318	  	  	 	11,126	  	
Property management fee revenue	  	 	-    	  	  	 	-    	  	  	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	  	 	-    	  	
Other rental income	  	 	-    	  	  	 	-    	  	  	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	  	 	-    	  	
 	  	 	 	 	 	 	 	 	
Total revenues	  	 	377	  	  	 	1,527	  	  	 	11,973	  	 	 	12,651	  	 	 	15,518	  	 	 	1,904	  	  	 	31,127	  	
 	 	 	 	 	 	 	 	
Operating expenses:	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
Property operating costs	  	 	69	  	  	 	145	  	  	 	4,698	  	 	 	3,651	  	 	 	6,402	  	 	 	214	  	  	 	12,760	  	
Depreciation	  	 	43	  	  	 	237	  	  	 	277	  	 	 	1,820	  	 	 	2,045	  	 	 	280	  	  	 	4,106	  	
Amortization	  	 	20	  	  	 	57	  	  	 	95	  	 	 	1,759	  	 	 	1,805	  	 	 	77	  	  	 	3,607	  	
General and administrative	  	 	5	  	  	 	3	  	  	 	(12	) 	 	 	41	  	 	 	23	  	 	 	8	  	  	 	40	  	
 	  	 	 	 	 	 	 	 	
Total operating expenses	  	 	137	  	  	 	442	  	  	 	5,058	  	 	 	7,271	  	 	 	10,275	  	 	 	579	  	  	 	20,513	  	
 	 	 	 	 	 	 	 	
Interest expense	  	 	-    	  	  	 	-    	  	  	 	(1,278	) 	 	 	(1,568	) 	 	 	(1,551	) 	 	 	-    	  	  	 	(3,085	) 	
Interest and other income (expense)	  	 	-    	  	  	 	-    	  	  	 	-    	  	 	 	16	  	 	 	(15	) 	 	 	-    	  	  	 	(15	) 	
Net income attributable to noncontrolling interest	  	 	-    	  	  	 	-    	  	  	 	(87	) 	 	 	(131	) 	 	 	(117	) 	 	 	-    	  	  	 	(235	) 	
 	  	 	 	 	 	 	 	 	
Total other income (expense)	  	 	-    	  	  	 	-    	  	  	 	(1,365	) 	 	 	(1,683	) 	 	 	(1,683	) 	 	 	-    	  	  	 	(3,335	) 	
 	 	 	 	 	 	 	 	
  Operating income, excluding impairment loss and gain on sale	  	 	240	  	  	 	1,085	  	  	 	5,550	  	 	 	3,697	  	 	 	3,560	  	 	 	1,325	  	  	 	7,279	  	
 	 	 	 	 	 	 	 	
Gain / (loss) on sale of properties	  	 	10,008	  	  	 	17,830	  	  	 	95,901	  	 	 	26,756	  	 	 	-    	  	 	 	27,838	  	  	 	-    	  	

Income from discontinued operations	  	  $	10,248	  	  	$	18,915	  	  	$	101,451	  	 	$	30,453	  	 	$	3,560	  	 	  $	29,163	  	  	$	7,279	  	

41

Piedmont Office Realty Trust, Inc.
Property Detail
As of June 30, 2012

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Building Name	 	City	 	State	  	Percent
Ownership	 	 	Year
Built	 	  	Rentable
Square
Footage
Owned (in
thousands)	 	 	Leased
Percentage	 	 	Commenced
Leased
Percentage	 	 	Economic
Leased
Percentage   (1)	 	
 	 	 	 	 	 	 	 	 	
Atlanta	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
11695 Johns Creek Parkway	 	Johns Creek	 	GA	  	 	100.0	% 	 	 	2001	  	  	 	101	  	 	 	91.1	% 	 	 	91.1	% 	 	 	88.1	% 	
3750 Brookside Parkway	 	Alpharetta	 	GA	  	 	100.0	% 	 	 	2001	  	  	 	103	  	 	 	91.3	% 	 	 	91.3	% 	 	 	91.3	% 	
Glenridge Highlands Two	 	Atlanta	 	GA	  	 	100.0	% 	 	 	2000	  	  	 	406	  	 	 	71.2	% 	 	 	71.2	% 	 	 	60.3	% 	
Suwanee Gateway One	 	Suwanee	 	GA	  	 	100.0	% 	 	 	2008	  	  	 	142	  	 	 	0.0	% 	 	 	0.0	% 	 	 	0.0	% 	
The Dupree	 	Atlanta	 	GA	  	 	100.0	% 	 	 	1997	  	  	 	138	  	 	 	82.6	% 	 	 	82.6	% 	 	 	82.6	% 	
The Medici	 	Atlanta	 	GA	  	 	100.0	% 	 	 	2008	  	  	 	152	  	 	 	32.9	% 	 	 	32.9	% 	 	 	23.7	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	 	 	 	 	 	 	  	 	1,042	  	 	 	61.3	% 	 	 	61.3	% 	 	 	55.5	% 	
 	 	 	 	 	 	 	 	 	
Austin	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Braker Pointe III	 	Austin	 	TX	  	 	100.0	% 	 	 	2001	  	  	 	195	  	 	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	 	 	 	 	 	 	  	 	195	  	 	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
 	 	 	 	 	 	 	 	 	
Boston	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
1200 Crown Colony Drive	 	Quincy	 	MA	  	 	100.0	% 	 	 	1990	  	  	 	235	  	 	 	100.0	% 	 	 	100.0	% 	 	 	22.1	% 	
90 Central Street	 	Boxborough	 	MA	  	 	100.0	% 	 	 	2001	  	  	 	175	  	 	 	97.1	% 	 	 	97.1	% 	 	 	97.1	% 	
1414 Massachusetts Avenue	 	Cambridge	 	MA	  	 	100.0	% 	 	 	1873	  	  	 	78	  	 	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
One Brattle Square	 	Cambridge	 	MA	  	 	100.0	% 	 	 	1991	  	  	 	95	  	 	 	94.7	% 	 	 	94.7	% 	 	 	94.7	% 	
225 Presidential Way	 	Woburn	 	MA	  	 	100.0	% 	 	 	2001	  	  	 	202	  	 	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
235 Presidential Way	 	Woburn	 	MA	  	 	100.0	% 	 	 	2000	  	  	 	238	  	 	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	 	 	 	 	 	 	  	 	1,023	  	 	 	99.0	% 	 	 	99.0	% 	 	 	81.1	% 	
 	 	 	 	 	 	 	 	 	
Chicago	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Windy Point I	 	Schaumburg	 	IL	  	 	100.0	% 	 	 	1999	  	  	 	187	  	 	 	100.0	% 	 	 	96.8	% 	 	 	96.8	% 	
Windy Point II	 	Schaumburg	 	IL	  	 	100.0	% 	 	 	2001	  	  	 	300	  	 	 	15.7	% 	 	 	15.7	% 	 	 	15.7	% 	
Aon Center	 	Chicago	 	IL	  	 	100.0	% 	 	 	1972	  	  	 	2,685	  	 	 	81.8	% 	 	 	70.8	% 	 	 	67.7	% 	
Two Pierce Place	 	Itasca	 	IL	  	 	100.0	% 	 	 	1991	  	  	 	486	  	 	 	77.4	% 	 	 	76.3	% 	 	 	76.1	% 	
2300 Cabot Drive	 	Lisle	 	IL	  	 	100.0	% 	 	 	1998	  	  	 	152	  	 	 	76.3	% 	 	 	76.3	% 	 	 	76.3	% 	
500 West Monroe Street	 	Chicago	 	IL	  	 	100.0	% 	 	 	1991	  	  	 	962	  	 	 	53.7	% 	 	 	47.6	% 	 	 	47.6	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	 	 	 	 	 	 	  	 	4,772	  	 	 	72.0	% 	 	 	64.4	% 	 	 	62.7	% 	
 	 	 	 	 	 	 	 	 	
Cleveland	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Eastpoint I	 	Mayfield Heights	 	OH	  	 	100.0	% 	 	 	2000	  	  	 	102	  	 	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
Eastpoint II	 	Mayfield Heights	 	OH	  	 	100.0	% 	 	 	2000	  	  	 	85	  	 	 	91.8	% 	 	 	91.8	% 	 	 	71.8	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	 	 	 	 	 	 	  	 	187	  	 	 	96.3	% 	 	 	96.3	% 	 	 	87.2	% 	
 	 	 	 	 	 	 	 	 	
Dallas	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
3900 Dallas Parkway	 	Plano	 	TX	  	 	100.0	% 	 	 	1999	  	  	 	120	  	 	 	100.0	% 	 	 	100.0	% 	 	 	40.8	% 	
5601 Headquarters Drive	 	Plano	 	TX	  	 	100.0	% 	 	 	2001	  	  	 	166	  	 	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
6031 Connection Drive	 	Irving	 	TX	  	 	100.0	% 	 	 	1999	  	  	 	229	  	 	 	88.6	% 	 	 	88.6	% 	 	 	79.5	% 	
6021 Connection Drive	 	Irving	 	TX	  	 	100.0	% 	 	 	2000	  	  	 	223	  	 	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
6011 Connection Drive	 	Irving	 	TX	  	 	100.0	% 	 	 	1999	  	  	 	152	  	 	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
Las Colinas Corporate Center I	 	Irving	 	TX	  	 	100.0	% 	 	 	1998	  	  	 	159	  	 	 	89.9	% 	 	 	88.1	% 	 	 	83.0	% 	
Las Colinas Corporate Center II	 	Irving	 	TX	  	 	100.0	% 	 	 	1998	  	  	 	227	  	 	 	58.1	% 	 	 	57.3	% 	 	 	48.0	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	 	 	 	 	 	 	  	 	1,276	  	 	 	89.3	% 	 	 	88.9	% 	 	 	79.4	% 	
 	 	 	 	 	 	 	 	 	
Denver	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
350 Spectrum Loop	 	Colorado Springs	 	CO	  	 	100.0	% 	 	 	2001	  	  	 	156	  	 	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	 	 	 	 	 	 	  	 	156	  	 	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
 	 	 	 	 	 	 	 	 	
Detroit	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
1441 West Long Lake Road	 	Troy	 	MI	  	 	100.0	% 	 	 	1999	  	  	 	107	  	 	 	79.4	% 	 	 	73.8	% 	 	 	73.8	% 	
150 West Jefferson	 	Detroit	 	MI	  	 	100.0	% 	 	 	1989	  	  	 	493	  	 	 	73.8	% 	 	 	73.8	% 	 	 	73.4	% 	
Auburn Hills Corporate Center	 	Auburn Hills	 	MI	  	 	100.0	% 	 	 	2001	  	  	 	120	  	 	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
1075 West Entrance Drive	 	Auburn Hills	 	MI	  	 	100.0	% 	 	 	2001	  	  	 	210	  	 	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	 	 	 	 	 	 	  	 	930	  	 	 	83.8	% 	 	 	83.1	% 	 	 	82.9	% 	
 	 	 	 	 	 	 	 	 	
Central & South Florida	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Sarasota Commerce Center II	 	Sarasota	 	FL	  	 	100.0	% 	 	 	1999	  	  	 	152	  	 	 	84.9	% 	 	 	84.2	% 	 	 	65.8	% 	
5601 Hiatus Road	 	Tamarac	 	FL	  	 	100.0	% 	 	 	2001	  	  	 	100	  	 	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
2001 NW 64th Street	 	Ft. Lauderdale	 	FL	  	 	100.0	% 	 	 	2001	  	  	 	48	  	 	 	100.0	% 	 	 	77.1	% 	 	 	77.1	% 	
400 TownPark	 	Lake Mary	 	FL	  	 	100.0	% 	 	 	2008	  	  	 	176	  	 	 	34.1	% 	 	 	31.3	% 	 	 	20.5	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	 	 	 	 	 	 	  	 	476	  	 	 	70.8	% 	 	 	67.2	% 	 	 	57.4	% 	
 	 	 	 	 	 	 	 	 	
Houston	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
1430 Enclave Parkway	 	Houston	 	TX	  	 	100.0	% 	 	 	1994	  	  	 	313	  	 	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
1200 Enclave Parkway	 	Houston	 	TX	  	 	100.0	% 	 	 	1999	  	  	 	150	  	 	 	80.7	% 	 	 	79.3	% 	 	 	9.3	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	 	 	 	 	 	 	  	 	463	  	 	 	93.7	% 	 	 	93.3	% 	 	 	70.6	% 	
 
42

Piedmont Office Realty Trust, Inc.
Property Detail
As of June 30, 2012

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Building Name	 	City	 	State	  	Percent
Ownership	 	 	Year
Built	 	  	Rentable
Square
Footage
Owned (in
thousands)	 	  	Leased
Percentage	 	 	Commenced
Leased
Percentage	 	 	Economic
Leased
Percentage  (1)	 	
 	 	 	 	 	 	 	 	 	
Los Angeles	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
800 North Brand Boulevard	 	Glendale	 	CA	  	 	100.0	% 	 	 	1990	  	  	 	518	  	  	 	80.3	% 	 	 	80.3	% 	 	 	80.3	% 	
1055 East Colorado Boulevard	 	Pasadena	 	CA	  	 	100.0	% 	 	 	2001	  	  	 	175	  	  	 	62.3	% 	 	 	62.3	% 	 	 	50.9	% 	
Fairway Center II	 	Brea	 	CA	  	 	100.0	% 	 	 	2002	  	  	 	134	  	  	 	95.5	% 	 	 	95.5	% 	 	 	77.6	% 	
1901 Main Street	 	Irvine	 	CA	  	 	100.0	% 	 	 	2001	  	  	 	172	  	  	 	84.9	% 	 	 	80.8	% 	 	 	80.8	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	 	 	 	  	 	999	  	  	 	80.0	% 	 	 	79.3	% 	 	 	74.9	% 	
 	 	 	 	 	 	 	 	 	
Minneapolis	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
Crescent Ridge II	 	Minnetonka	 	MN	  	 	100.0	% 	 	 	2000	  	  	 	301	  	  	 	74.8	% 	 	 	74.8	% 	 	 	68.8	% 	
US Bancorp Center	 	Minneapolis	 	MN	  	 	100.0	% 	 	 	2000	  	  	 	928	  	  	 	95.6	% 	 	 	95.3	% 	 	 	90.6	% 	
One Meridian Crossings	 	Richfield	 	MN	  	 	100.0	% 	 	 	1997	  	  	 	195	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
Two Meridian Crossings	 	Richfield	 	MN	  	 	100.0	% 	 	 	1998	  	  	 	189	  	  	 	91.5	% 	 	 	91.5	% 	 	 	91.5	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	 	 	 	  	 	1,613	  	  	 	91.8	% 	 	 	91.6	% 	 	 	87.8	% 	
 	 	 	 	 	 	 	 	 	
Nashville	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
2120 West End Avenue	 	Nashville	 	TN	  	 	100.0	% 	 	 	2000	  	  	 	312	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	 	 	 	  	 	312	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
 	 	 	 	 	 	 	 	 	
New York	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
1111 Durham Avenue	 	South Plainfield	 	NJ	  	 	100.0	% 	 	 	1975	  	  	 	237	  	  	 	61.2	% 	 	 	61.2	% 	 	 	61.2	% 	
2 Gatehall Drive	 	Parsippany	 	NJ	  	 	100.0	% 	 	 	1985	  	  	 	405	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
200 Bridgewater Crossing	 	Bridgewater	 	NJ	  	 	100.0	% 	 	 	2002	  	  	 	299	  	  	 	73.6	% 	 	 	27.4	% 	 	 	20.7	% 	
Copper Ridge Center	 	Lyndhurst	 	NJ	  	 	100.0	% 	 	 	1989	  	  	 	268	  	  	 	97.0	% 	 	 	93.3	% 	 	 	92.2	% 	
60 Broad Street	 	New York	 	NY	  	 	100.0	% 	 	 	1962	  	  	 	1,027	  	  	 	99.8	% 	 	 	99.8	% 	 	 	99.8	% 	
600 Corporate Drive	 	Lebanon	 	NJ	  	 	100.0	% 	 	 	2005	  	  	 	125	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
400 Bridgewater Crossing	 	Bridgewater	 	NJ	  	 	100.0	% 	 	 	2002	  	  	 	297	  	  	 	99.7	% 	 	 	99.7	% 	 	 	99.7	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	 	 	 	  	 	2,658	  	  	 	93.2	% 	 	 	87.6	% 	 	 	86.7	% 	
 	 	 	 	 	 	 	 	 	
Philadelphia	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
1901 Market Street	 	Philadelphia	 	PA	  	 	100.0	% 	 	 	1987	  	  	 	761	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	 	 	 	  	 	761	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
 	 	 	 	 	 	 	 	 	
Phoenix	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
River Corporate Center	 	Tempe	 	AZ	  	 	100.0	% 	 	 	1998	  	  	 	133	  	  	 	100.0	% 	 	 	100.0	% 	 	 	0.0	% 	
8700 South Price Road	 	Tempe	 	AZ	  	 	100.0	% 	 	 	2000	  	  	 	132	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
Desert Canyon 300	 	Phoenix	 	AZ	  	 	100.0	% 	 	 	2001	  	  	 	149	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
Chandler Forum	 	Chandler	 	AZ	  	 	100.0	% 	 	 	2003	  	  	 	150	  	  	 	42.0	% 	 	 	42.0	% 	 	 	42.0	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	 	 	 	  	 	564	  	  	 	84.6	% 	 	 	84.6	% 	 	 	61.0	% 	
 	 	 	 	 	 	 	 	 	
Washington, D.C.	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
11107 Sunset Hills Road	 	Reston	 	VA	  	 	100.0	% 	 	 	1985	  	  	 	101	  	  	 	100.0	% 	 	 	98.0	% 	 	 	98.0	% 	
1201 Eye Street	 	Washington	 	DC	  	 	49.5	% (2) 	 	 	2001	  	  	 	269	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
1225 Eye Street	 	Washington	 	DC	  	 	49.5	% (2) 	 	 	1986	  	  	 	225	  	  	 	87.1	% 	 	 	84.9	% 	 	 	75.1	% 	
3100 Clarendon Boulevard	 	Arlington	 	VA	  	 	100.0	% 	 	 	1987	  	  	 	250	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
400 Virginia Avenue	 	Washington	 	DC	  	 	100.0	% 	 	 	1985	  	  	 	224	  	  	 	93.8	% 	 	 	93.8	% 	 	 	93.8	% 	
4250 North Fairfax Drive	 	Arlington	 	VA	  	 	100.0	% 	 	 	1998	  	  	 	304	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
9211 Corporate Boulevard	 	Rockville	 	MD	  	 	100.0	% 	 	 	1989	  	  	 	115	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
9221 Corporate Boulevard	 	Rockville	 	MD	  	 	100.0	% 	 	 	1989	  	  	 	115	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
One Independence Square	 	Washington	 	DC	  	 	100.0	% 	 	 	1991	  	  	 	334	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
9200 Corporate Boulevard	 	Rockville	 	MD	  	 	100.0	% 	 	 	1982	  	  	 	109	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
11109 Sunset Hills Road	 	Reston	 	VA	  	 	100.0	% 	 	 	1984	  	  	 	41	  	  	 	0.0	% 	 	 	0.0	% 	 	 	0.0	% 	
Two Independence Square	 	Washington	 	DC	  	 	100.0	% 	 	 	1991	  	  	 	561	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
Piedmont Pointe I	 	Bethesda	 	MD	  	 	100.0	% 	 	 	2007	  	  	 	186	  	  	 	68.8	% 	 	 	65.6	% 	 	 	65.1	% 	
Piedmont Pointe II	 	Bethesda	 	MD	  	 	100.0	% 	 	 	2008	  	  	 	221	  	  	 	50.2	% 	 	 	42.1	% 	 	 	18.6	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	 	 	 	  	 	3,055	  	  	 	91.8	% 	 	 	90.7	% 	 	 	88.3	% 	
 
Grand Total 
 	 	 	 	 	  	 	 	 	 	 	 	 	  	 
 	20,482

 	85.0
 	% 
 	 	 
 	82.2
 	% 
 	 	 
 	77.5
 	% 
 	
(1) Economic leased percentage excludes the square footage associated with executed but not commenced leases for currently vacant spaces and the square footage associated with tenants receiving rental abatements (after proportionate adjustments for tenants receiving only partial rent abatements).
(2) Although Piedmont owns 49.5% of the asset, it is entitled to 100% of the cash flows under the terms of the property ownership entity’s joint venture agreement.
 
43

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; the demand for office space, rental rates and property values may continue to lag the general economic recovery; our $500 Million Unsecured Facility matures in August 2012 and a failure to renew this facility could cause our business, results of operations, cash flows, financial condition and access to capital to be adversely affected; 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; availability of financing; costs of complying with governmental laws and regulations; uncertainties associated with environmental and other regulatory matters; potential changes in the political environment and reduction in federal and/or state funding of our government tenants; we are and may continue to be subject to litigation; our ability to continue to qualify as a REIT under the Internal Revenue Code; and other factors detailed in our most recent Annual Report on Form 10-K and other documents we file with the Securities and Exchange Commission.
 
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this supplemental report. We cannot guarantee the accuracy of any such forward-looking statements contained in this supplemental report, and we do not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.	
 
44