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) May 11, 2010

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 May 11, 2010, Piedmont Office Realty Trust, Inc. (the “Registrant”) issued a press release announcing its financial results for the first quarter 2010 and published supplemental information for the first quarter 2010 to its website. The press release and the supplemental information are attached hereto as Exhibit 99.1 and 99.2, respectively, and are incorporated herein by reference. Pursuant to the rules and regulations of the Securities and Exchange Commission, such exhibits and the information set forth therein are deemed to have been furnished and shall not be deemed to be “filed” under the Securities Exchange Act of 1934.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits:

Exhibit No.	  	Description	
 	 	
99.1	  	Press release dated May 11, 2010.	
 	 	
99.2	  	Piedmont Office Realty Trust, Inc. Quarterly Supplemental Information for the First Quarter 2010.	

 
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: May 11, 2010

 
EXHIBIT INDEX

Exhibit No.	  	Description	
 	 	
99.1	  	Press release dated May 11, 2010.	
 	 	
99.2	  	Piedmont Office Realty Trust, Inc. Quarterly Supplemental Information for the First Quarter 2010.	

Exhibit 99.1

PIEDMONT OFFICE REALTY TRUST
REPORTS FIRST QUARTER RESULTS
ATLANTA, May 11, 2010 – Piedmont Office Realty Trust, Inc. (“Piedmont” or the “Company”) (NYSE: PDM), an owner of Class A properties located primarily in the ten largest U.S. office markets, today announced its results for the quarter ended March 31, 2010.
Donald A. Miller, CFA, President and Chief Executive Officer stated, “The leasing market remains challenging but we are pleased with our execution of over 180,000 square feet of new and renewal leases at our office properties during the quarter, along with 174,000 square feet of industrial leasing activity, allowing us to maintain stable occupancy. We are focused on our future lease expirations and are committed to achieving results that will best position us to enhance future earnings growth. We continue to seek opportunities to put our balance sheet capacity to work and believe that we should have a competitive advantage in capturing portfolio transactions that will enhance our current operating footprint.”
Results for the First Quarter ended March 31, 2010
Piedmont’s net income available to common stockholders was $31.5 million, or $0.19 per diluted share, for the first quarter 2010, compared with the $29.0 million, or $0.18 per diluted share for the first quarter of 2009 (a 5.6 percent increase on a per share basis after accounting for the issuance of additional shares during first quarter 2010). Funds from operations (FFO) for the quarter totaled $69.2 million, or $0.42 per diluted share, compared to $68.4 million, or $0.43 per diluted share, in the first quarter of 2009. Adjusted FFO (AFFO) in the first quarter totaled $60.6 million, or $0.37 per diluted share, as compared to $59.6 million, or $0.37 per diluted share, in the first quarter 2009. Revenues for the quarter ended March 31, 2010 totaled $148.4 million compared to $153.7 million in the prior year period.
Of the 180,000 square feet of office leases executed during the first quarter of 2010, approximately one-half were renewals and the other half new leases. On March 31, 2010, the Company’s office portfolio was 89.6 percent leased with a weighted average lease term remaining of 5.7 years. Same store net operating income on a cash basis was $91.9 million, down 2.6 percent from $94.4 million in the prior year period, largely attributable to a partial lease expiration at Aon Center in Chicago and rent abatements on two recently executed renewal leases.

Leasing Update
At the end of March, 2010, the Company had roughly 1.2 million square feet, or 5.8 percent of rentable square footage of its office portfolio, due to expire during 2010, with the majority of these leases scheduled to expire toward the end of the year. The Company is actively managing its upcoming lease expirations and is also in negotiation with the two largest tenants whose leases expire in 2011. The Company has already been successful in mitigating the majority of its releasing exposure associated with the expiration of the Kirkland & Ellis lease at its Aon Center property through the previously announced lease transaction with KPMG.
Balance Sheet and Capital Markets Activities
As previously communicated, Piedmont’s Class A common stock became publicly traded on the New York Stock Exchange on February 10, 2010. In connection with the listing, the Company issued 13.8 million Class A common shares (8.7 percent of all outstanding common stock as of December 31, 2009) in an underwritten public offering resulting in net proceeds of $184.5 million.
As of March 31, 2010, Piedmont’s total gross real estate assets were $4.6 billion with total debt of $1.4 billion. Total debt-to-total gross assets was 26.6 percent and net debt (total debt less cash and cash equivalents)-to-core EBITDA was 3.7x. The Company’s fixed charge coverage ratio was 4.6x. As of March 31, 2010, Piedmont had cash and capacity on its unsecured credit line of approximately $567 million and no debt maturities in 2010.
Dividend
On May 11, 2010, the board of directors of Piedmont declared dividends for the second quarter 2010 in the amount of $0.315 (31.50 cents) per share on all classes of outstanding common shares of Piedmont to stockholders of record for such shares as shown on the books of Piedmont at the close of business on June 15, 2010. Such dividends are to be paid on June 22, 2010.
Disposition of Real Estate Assets – 111 Sylvan Avenue
Subsequent to quarter end, Piedmont entered into a binding purchase and sale agreement to dispose of 111 Sylvan Avenue located in Englewood Cliffs, NJ for a gross sales price of approximately $55.0 million, exclusive of closing costs, with an anticipated closing date of December 1, 2010. 111 Sylvan Avenue is a 410,000 square foot, three-story building constructed in 1953 and it is currently leased entirely to Citicorp through November of this year. Piedmont anticipates recording a $9.8 million impairment charge in the second quarter related to the write-down of this property to fair market value

in anticipation of the sale. The estimated impairment charge is subject to change as additional information becomes available in subsequent periods.
Guidance for 2010
Excluding the impairment charge related to the potential disposition set forth above, the Company reaffirms financial guidance for full-year 2010 based on management’s expectations as follows:

 	  	Low	 	 	  	High	
Net Income (excluding the $9.8 million impairment charge)	  	$	117	 	-	  	$	124 million	
Add: Depreciation & Amortization	  	$	152	 	-	  	$	154 million	
Core Funds from Operations (excludes impairment charges)	  	$	269	 	-	  	$	278 million	
Core FFO per diluted share (excludes impairment charges)	  	$	1.56	 	-	  	$	1.62             	
Our anticipated $9.8 million charge on the 111 Sylvan Avenue property will not have an impact on our reported Core FFO, but it will impact FFO as previously estimated by roughly $0.055 per share. The opportunity to sell 111 Sylvan Avenue was not contemplated in our original FFO guidance. Note that individual quarters may fluctuate on both a cash and accrual basis due to timing of repairs and maintenance, capital expenditures and one-time revenue or expense events. In addition, the Company’s guidance is based on information available to management as of the date of this release and does not include any future potential litigation reserve adjustments, or the impact of any potential acquisitions, divestitures or impairments.
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 for Wednesday, May 12th, 2010 at 8:30 am Eastern Time. Dial-in numbers are (877) 407-9039 for participants in the United States and (201) 689-8470 for international participants. There will also be a live audio webcast of the call, which may be accessed on the Company’s website at www.piedmontreit.com in the Investor Relations section. A replay of the conference call will be available until Wednesday May 26, 2010, and can be accessed by dialing (877) 660-6853, or (201) 612-7415 for international participants, followed by the Conference ID, 349822. An online replay will also be available after the conference call in the Investor Relations section of the Company’s website.

Supplemental Information
Quarterly Supplemental Information as of and for the three months ended March 31, 2010 can be accessed on our website under the Investor Relations section at “www.piedmontreit.com”.
About Piedmont Office Realty Trust
Piedmont Office Realty Trust, Inc. is a fully-integrated, self-managed real estate investment trust (“REIT”) specializing in the acquisition, ownership, management, development and disposition of primarily high-quality Class A office buildings located predominately in large U.S. office markets and leased principally to high-credit-quality tenants. Piedmont is rated as an investment-grade company by Standard & Poor’s and Moody’s and has maintained a low-leverage strategy while acquiring over $5.5 billion in office properties over the past 12 years. Over eighty-seven percent of the Company’s Annualized Lease Revenue (as defined in our SEC filings) is derived from office properties located in the ten largest U.S. office markets including Chicago, Washington D.C., the New York metropolitan area, Boston and greater Los Angeles.
Forward Looking Statements
Certain statements contained in this press release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We intend for all such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, as applicable. Such information is subject to certain risks and uncertainties, as well as known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of our performance in future periods. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “continue” or similar words or phrases that are predictions of future events or trends and which do not relate solely to historical matters. Examples of such statements in this press release include the competitive advantage of the Company in capturing portfolio transactions that will enhance our current operating footprint; the strength of the company’s leasing portfolio and lease renewal activities; the consummation of the transaction to sell 111 Sylvan Avenue and the related $9.8 million impairment charge; the Company’s anticipated net income, depreciation and amortization, Core FFO, and Core FFO per share (diluted) for the year ending December 31, 2010.
The following are some of the factors that could cause the Company’s actual results and its expectations to differ materially from those described in the Company’s forward-looking statements: the Company’s ability to successfully identify and consummate suitable acquisitions; current adverse market and economic conditions; lease terminations or lease defaults, particularly by one of the Company’s large lead tenants; the impact of competition on the Company’s efforts to renew existing leases or re-let space; changes in the economies and other conditions of the office market in general and of the specific markets in which the Company operates; economic and regulatory changes; additional risks and costs associated

with directly managing properties occupied by government tenants; adverse market and economic conditions and related impairments to the Company’s real estate assets and other intangible assets; the success of the Company’s real estate strategies and investment objectives; availability of financing; costs of complying with governmental laws and regulations; uncertainties associated with environmental and other regulatory matters; the Company’s ability to continue to qualify as a REIT under the Internal Revenue Code; 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 press release. We cannot guarantee the accuracy of any such forward-looking statements contained in this press release, and we do not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

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

 
 	 	 	 	 	 	 	 	 	
 	  	March 31, 2010	 	 	December 31, 2009	 	
Assets:	  	 	 	 	 	 	 	 	
Real estate assets, at cost:	  	 	 	 	 	 	 	 	
Land	  	$	651,876	  	 	$	651,876	  	
Buildings and improvements	  	 	3,672,594	  	 	 	3,663,391	  	
Buildings and improvements, accumulated depreciation	  	 	(689,117	) 	 	 	(665,068	) 	
Intangible lease asset	  	 	235,022	  	 	 	243,312	  	
Intangible lease asset, accumulated amortization	  	 	(145,242	) 	 	 	(147,043	) 	
Construction in progress	  	 	12,345	  	 	 	17,059	  	
 	  	 	 	 	 	 	 	 	
Total real estate assets	  	 	3,737,478	  	 	 	3,763,527	  	
Investment in unconsolidated joint ventures	  	 	43,482	  	 	 	43,940	  	
Cash and cash equivalents	  	 	76,994	  	 	 	10,004	  	
Tenant receivables, net of allowance for doubtful accounts	  	 	33,152	  	 	 	33,071	  	
Straight line rent receivable	  	 	95,164	  	 	 	95,371	  	
Notes receivable	  	 	59,407	  	 	 	58,739	  	
Due from unconsolidated joint ventures	  	 	1,202	  	 	 	1,083	  	
Prepaid expenses and other assets	  	 	18,600	  	 	 	21,456	  	
Goodwill	  	 	180,097	  	 	 	180,097	  	
Deferred financing costs, less accumulated amortization	  	 	6,509	  	 	 	7,205	  	
Deferred lease costs, less accumulated amortization	  	 	176,325	  	 	 	180,852	  	
 	  	 	 	 	 	 	 	 	
Total assets	  	$	4,428,410	  	 	$	4,395,345	  	
 	  	 	 	 	 	 	 	 	
Liabilities:	  	 	 	 	 	 	 	 	
Lines of credit and notes payable	  	 	1,402,525	  	 	 	1,516,525	  	
Accounts payable, accrued expenses, and accrued capital expenditures	  	 	83,172	  	 	 	97,747	  	
Deferred income	  	 	39,079	  	 	 	34,506	  	
Intangible lease liabilities, less accumulated amortization	  	 	57,689	  	 	 	60,655	  	
Interest rate swap	  	 	2,316	  	 	 	3,866	  	
 	  	 	 	 	 	 	 	 	
Total liabilities	  	 	1,584,781	  	 	 	1,713,299	  	
Redeemable common stock(1)	  	 	—  	  	 	 	75,164	  	
Shareholders’ equity(2) :	  	 	 	 	 	 	 	 	
Class A common stock	  	 	534	  	 	 	397	  	
Class B-1 common stock	  	 	397	  	 	 	397	  	
Class B-2 common stock	  	 	397	  	 	 	397	  	
Class B-3 common stock	  	 	397	  	 	 	398	  	
Additional paid in capital	  	 	3,659,257	  	 	 	3,477,168	  	
Cumulative distributions in excess of earnings	  	 	(820,878	) 	 	 	(798,561	) 	
Redeemable common stock	  	 	—  	  	 	 	(75,164	) 	
Other comprehensive loss	  	 	(2,316	) 	 	 	(3,866	) 	
 	  	 	 	 	 	 	 	 	
Piedmont stockholders’ equity	  	 	2,837,788	  	 	 	2,601,166	  	
Non-controlling interest	  	 	5,841	  	 	 	5,716	  	
 	  	 	 	 	 	 	 	 	
Total stockholders’ equity	  	 	2,843,629	  	 	 	2,606,882	  	
 	  	 	 	 	 	 	 	 	
Total liabilities, redeemable common stock and stockholders’ equity	  	$	4,428,410	  	 	$	4,395,345	  	
 	  	 	 	 	 	 	 	 	
Net Debt (Total debt less cash and cash equivalents)	  	$	1,325,531	  	 	$	1,506,521	  	
Total Gross Assets (1)	  	$	5,262,769	  	 	$	5,207,456	  	
 
(1)	Total assets exclusive of accumulated depreciation and amortization related to real estate assets.	
 
1

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

 
 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended March 31,	 	
 	  	2010	 	 	2009	 	
Revenues:	  	 	 	 	 	 	 	 	
Rental income	  	$	112,106	  	 	$	112,946	  	
Tenant reimbursements	  	 	35,081	  	 	 	40,105	  	
Property management fee revenue	  	 	753	  	 	 	697	  	
Other rental income	  	 	496	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	
Total revenues	  	 	148,436	  	 	 	153,748	  	
Operating expenses:	  	 	 	 	 	 	 	 	
Property operating costs	  	 	55,369	  	 	 	60,131	  	
Depreciation	  	 	26,080	  	 	 	25,630	  	
Amortization	  	 	11,387	  	 	 	13,442	  	
General and administrative	  	 	6,630	  	 	 	7,371	  	
 	  	 	 	 	 	 	 	 	
Total operating expenses	  	 	99,466	  	 	 	106,574	  	
 	  	 	 	 	 	 	 	 	
Real estate operating income	  	 	48,970	  	 	 	47,174	  	
Other income (expense):	  	 	 	 	 	 	 	 	
Interest expense	  	 	(19,091	) 	 	 	(19,343	) 	
Interest and other income	  	 	969	  	 	 	662	  	
Equity in income of unconsolidated joint ventures	  	 	737	  	 	 	663	  	
 	  	 	 	 	 	 	 	 	
Total other income (expense)	  	 	(17,385	) 	 	 	(18,018	) 	
 	  	 	 	 	 	 	 	 	
Net income	  	 	31,585	  	 	 	29,156	  	
Less: Net income attributable to noncontrolling interest	  	 	(125	) 	 	 	(118	) 	
 	  	 	 	 	 	 	 	 	
Net income attributable to Piedmont	  	$	31,460	  	 	$	29,038	  	
 	  	 	 	 	 	 	 	 	
Weighted average common shares outstanding - diluted	  	 	165,200	  	 	 	159,878	  	
 	  	 	 	 	 	 	 	 	
Net income per share available to common stockholders - basic and diluted	  	$	0.19	  	 	$	0.18	  	

2

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 March 31,	 	
 	  	2010	 	 	2009	 	
Net income attributable to Piedmont	  	$	31,460	  	 	$	29,038	  	
Add:	  	 	 	 	 	 	 	 	
Depreciation of real estate assets (1)	  	 	26,250	  	 	 	25,837	  	
Amortization of lease-related costs (1)	  	 	11,488	  	 	 	13,543	  	
 	  	 	 	 	 	 	 	 	
Funds from operations* and core funds from operations*	  	 	69,198	  	 	 	68,418	  	
Add:	  	 	 	 	 	 	 	 	
Deferred financing cost amortization	  	 	696	  	 	 	708	  	
Depreciation of non real estate assets	  	 	178	  	 	 	152	  	
Straight-line effects of lease (revenue)/expense (1)	  	 	1,073	  	 	 	2,696	  	
Stock-based and other non-cash compensation	  	 	653	  	 	 	1,005	  	
Substract:	  	 	 	 	 	 	 	 	
Net effect of amortization of above/(below)-market in-place lease intangibles (1)	  	 	(1,426	) 	 	 	(1,230	) 	
Income from amortization of discount on purchase of mezzanine loans	  	 	(668	) 	 	 	(367	) 	
Non-incremental capital expenditures(2)	  	 	(9,122	) 	 	 	(11,805	) 	
 	  	 	 	 	 	 	 	 	
Adjusted funds from operations*	  	$	60,582	  	 	$	59,577	  	
 	  	 	 	 	 	 	 	 	
Weighted average common shares outstanding - diluted	  	 	165,200	  	 	 	159,878	  	
Funds from operations* and core funds from operations* per share (diluted)	  	$	0.42	  	 	$	0.43	  	
Adjusted funds from operations* per share (diluted)	  	$	0.37	  	 	$	0.37	  	
 
(1)	Includes adjustments for wholly-owned properties, and for our proportionate ownership in unconsolidated joint ventures.	
(2)	Capital expenditures of a recurring nature related to tenant improvements and leasing commissions that do not incrementally enhance the underlying assets’ income generating capacity. We exclude first generation tenant improvements and leasing commissions from this measure	
*Definitions
Funds From Operations (“FFO”): FFO is calculated in accordance with the current National Association of Real Estate Investment Trusts (“NAREIT”) definition. NAREIT currently defines FFO as net income (computed in accordance with GAAP), excluding gains or losses from sales of property plus depreciation and amortization on real estate assets, and after the same adjustments for unconsolidated partnerships and joint ventures. Such factors can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates. FFO may provide valuable comparisons of operating performance between periods and with other REITs. FFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating performance to net income. We believe that FFO is a beneficial indicator of the performance of an equity REIT. However, other REITs may not define FFO in accordance with the NAREIT definition, or may interpret the current NAREIT definition differently than we do; therefore, our computation of FFO may not be comparable to that of such other REITs.
Core Funds From Operations (“Core FFO”): We calculate Core FFO by starting with FFO, as defined by NAREIT, and adjust for certain non-recurring items such as impairment losses and other extraordinary items. Such items create significant earnings volatility. We believe Core FFO provides a meaningful measure of our operating performance and more predictability regarding future earnings potential. Core FFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating performance to net income; therefore, it should not be compared to other REITs’ equivalent to Core FFO.
Adjusted Funds From Operations (“AFFO”): AFFO is calculated as Core FFO exclusive of the net effects of: (i) amortization associated with deferred financing costs; (ii) depreciation on non-income-producing real estate assets; (iii) straight line lease revenue/ expense; (iv) amortization of above and below-market lease intangibles; (v) stock-based and other non-cash compensation expense; (vi) amortization of mezzanine discount income; and (vii) non-incremental capital expenditures (as defined above). Our proportionate share of such adjustments related to investments in unconsolidated joint ventures are also included when calculating AFFO. 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.
 
3

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

 
 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended March 31,	 	
 	  	2010	 	 	2009	 	
Net income attributable to Piedmont	  	$	31,460	  	 	$	29,038	  	
Add:	  	 	 	 	 	 	 	 	
Non-controlling interest	  	 	125	  	 	 	118	  	
Interest Expense	  	 	19,091	  	 	 	19,343	  	
Depreciation	  	 	26,428	  	 	 	25,989	  	
Amortization	  	 	11,488	  	 	 	13,543	  	
 	  	 	 	 	 	 	 	 	
Core EBITDA*	  	 	88,592	  	 	 	88,031	  	
Add:	  	 	 	 	 	 	 	 	
General & administrative expenses	  	 	6,695	  	 	 	7,407	  	
Deduct:	  	 	 	 	 	 	 	 	
Interest and other income	  	 	(969	) 	 	 	(662	) 	
Lease termination income	  	 	(496	) 	 	 	—  	  	
Lease termination expense - straight line rent & FAS 141 write-offs	  	 	67	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	
Core net operating income (Accrual basis)*	  	 	93,889	  	 	 	94,776	  	
Deduct:	  	 	 	 	 	 	 	 	
Straight line rent adjustment	  	 	1,006	  	 	 	2,696	  	
FAS 141 adjustment	  	 	(1,426	) 	 	 	(1,230	) 	
 	  	 	 	 	 	 	 	 	
Core net operating income (Cash basis)*	  	 	93,469	  	 	 	96,242	  	
Deduct:	  	 	 	 	 	 	 	 	
Acquisitions	  	 	—  	  	 	 	—  	  	
Industrial Properties	  	 	(273	) 	 	 	(641	) 	
Unconsolidated joint ventures	  	 	(1,267	) 	 	 	(1,196	) 	
 	  	 	 	 	 	 	 	 	
Same Store NOI*	  	$	91,929	  	 	$	94,405	  	
 	  	 	 	 	 	 	 	 	
Year over year change in same store NOI	  	 	-2.6	% 	 	 	 	 	
Fixed Charge Coverage Ratio (Core EBITDA/ Interest Expense)(1)	  	 	4.6	  	 	 	 	 	
 
(1)	Piedmont had no capitalized interest, principal amortization or preferred dividends for any of the periods presented.	
*Definitions
Core EBITDA: Core EBITDA is defined as net income before interest, taxes, depreciation and amortization and incrementally adding back any impairment losses and 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 liquidity. 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. 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 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. Same Store NOI excludes amounts attributable to industrial properties. We present this measure on a cash basis which eliminates the effects of straight lined rents and fair value lease revenue. We believe Same Store NOI is an important measure of comparison of our stabilized properties’ operating performance. Other REITs may calculate Same Store NOI differently and our calculation should not be compared to that of other REITs.
 
4

This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: Piedmont Office Realty Trust
CONTACT:
Piedmont Office Realty Trust
Eddie Guilbert
770-418-8592
research.analysts@piedmontreit.com
or
Investor Relations
800-557-4830
investor.services@piedmontreit.com
or
ICR Inc.
Evelyn Infurna
203-682-8346
Evelyn.infurna@icrinc.com

Exhibit 99.2

Quarterly Supplemental Information
March 31, 2010

 
 	 	 	 	 	
Corporate Headquarters	  	Institutional Analyst Contact	  	Investor Relations	
 	 	 	
11695 Johns Creek Parkway, Suite 350	  	Telephone: 770.418.8592	  	Telephone: 800.557.4830	
Johns Creek, GA 30097	  	research.analysts@piedmontreit.com	  	Facsimile: 770.243.8198	
Telephone: 770.418.8800	  	 	  	investor.services@piedmontreit.com	
 	  	 	  	www.piedmontreit.com	

Piedmont Office Realty Trust, Inc.
Quarterly Supplemental Information
Index

 
 	 	 	
 	  	Page	
Introduction	  	 	
Corporate Data	  	3	
Investor Information	  	4	
Financial Highlights	  	5-7	
Key Performance Indicators	  	8	
 	 	
Financials	  	 	
Balance Sheet	  	9	
Income Statements	  	10-11	
Funds From Operations / Adjusted Funds From Operations	  	12	
Same Store Analysis	  	13	
Capitalization Analysis	  	14	
Debt Summary	  	15	
Debt Detail	  	16	
Debt Analysis	  	17	
 	 	
Operational & Portfolio Information - Office Investments	  	 	
Tenant Diversification	  	18	
Tenant Credit & Lease Distribution Information	  	19	
Leasing Activity	  	20	
Lease Expiration Schedule	  	21	
Annual Lease Expirations	  	22	
Capital Expenditures & Commitments	  	23	
Contractual Tenant Improvements & Leasing Commissions	  	24	
Geographic Diversification	  	25	
Industry Diversification	  	26	
 	 	
Other Investments	  	 	
Other Investments Detail	  	27	
 	 	
Supporting Information	  	 	
Definitions	  	28-29	
Research Coverage	  	30	
Non-GAAP Reconciliations	  	31-33	
Risks, Uncertainties and Limitations	  	34	
Please refer to page 34 for a discussion of important risks related to the business of Piedmont Office Realty Trust, as well as an investment in its securities, including risks that could cause actual results and events to differ materially from results and events referred to in the forward-looking information. Considering these risks, uncertainties, assumptions, and limitations, the forward-looking events contained in this supplemental reporting package might not occur.
In the opinion of management, the statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair presentation of the results for such periods. Results for these interim periods are not necessarily indicative of a full year’s results and certain prior period amounts have been reclassified to conform to the current period financial statement presentation.

Piedmont Office Realty Trust, Inc.
Corporate Data

Piedmont Office Realty Trust, Inc. (“Piedmont” or the “Company”) (NYSE: PDM) is a fully-integrated and self-managed real estate investment trust (“REIT”) specializing in the acquisition, ownership, management, development and disposition of primarily high-quality Class A office buildings located predominately in large U.S. office markets and leased principally to high-credit-quality tenants. Since its first acquisition in 1998, the Company has acquired over $5.5 billion of office and industrial properties (inclusive of joint ventures). Rated as an investment-grade company by Standard & Poor’s and Moody’s, Piedmont has maintained a low-leverage strategy while acquiring its properties. Over 87% of our Annualized Lease Revenue (“ALR”) (1)  is derived from our office properties located within the ten largest U.S. office markets, including Chicago, Washington, D.C., the New York metropolitan area, Boston and greater Los Angeles.
This data supplements the information provided in our reports filed with the Securities and Exchange Commission.

 	  	As of
March 31, 2010	 	 	As of
December 31, 2009	 	
 	 	 	
Number of properties (2)	  	 	73	  	 	 	73	  	
 	 	 	
Rentable square footage (in ‘000s) (2)	  	 	20,230	  	 	 	20,229	  	
 	 	 	
Percent Leased (3)	  	 	89.6	% 	 	 	90.1	% 	
 	 	 	
Capitalization (in ‘000s):	  	 	 	 	 	 	 	 	
 	 	 	
Total debt	  	$	1,402,525	  	 	$	1,516,525	  	
 	 	 	
Equity market capitalization (4)	  	$	3,424,469	  	 	$	N/A	  	
 	 	 	
Total market capitalization (4)	  	$	4,826,994	  	 	$	N/A	  	
 	 	 	
Debt / Total market capitalization (4)	  	 	29.1	% 	 	 	N/A	  	
 	 	 	
Common stock data	  	 	 	 	 	 	 	 	
 	 	 	
High closing price during quarter(4)	  	$	20.20	  	 	$	N/A	  	
 	 	 	
Low closing price during quarter(4)	  	$	15.60	  	 	$	N/A	  	
 	 	 	
Closing price of Class A common stock at period end (4)	  	$	19.85	  	 	$	N/A	  	
 	 	 	
Weighted average fully diluted shares outstanding (in thousands) (5)	  	 	165,200	  	 	 	158,581	  	
 	 	 	
Shares of common stock issued and outstanding	  	 	172,517	  	 	 	158,917	  	
 	 	 	
Rating / outlook	  	 	 	 	 	 	 	 	
Standard & Poor’s	  	 	BBB / Stable	  	 	 	BBB / Stable	  	
Moody’s	  	 	Baa2 / Stable	  	 	 	Baa3 / Positive	  	
Employees	  	 	107	  	 	 	107	  	
 
(1)	The definition for Annualized Lease Revenue can be found on page 28.	
(2)	Our office portfolio currently consists of 73 properties (exclusive of our equity interests in eight properties owned through unconsolidated joint ventures and our two industrial properties).	
(3)	Calculated as leased square footage on March 31, 2010 plus square footage associated with new leases signed for currently vacant spaces divided by total rentable square footage, expressed as a percentage. This measure is presented for our 73 office properties and excludes industrial and unconsolidated joint venture properties.	
(4)	Our Class A common stock was listed on the New York Stock Exchange on February 10, 2010; there is no market data as of December 31, 2009. Our Class B-1, Class B-2, and Class B-3 common stock (collectively, our “Class B common stock”) is not listed on a national securities exchange and there is no established market for such shares. We have used the closing price of the Class A common stock at period end of $19.85 per share for the purposes of the calculations regarding market capitalization herein.	
(5)	Weighted average fully diluted shares outstanding are presented on a year-to-date basis for each period.	
 
3

Piedmont Office Realty Trust, Inc.
Investor Information

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

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

Transfer Agent	  	Corporate Counsel	
 	 	
Boston Financial Data Services	  	King & Spalding	
2000 Crown Colony Drive	  	1180 Peachtree Street, NE	
Quincy, Massachusetts 02169	  	Atlanta, GA 30309	
Phone: 888.772.2337	  	Phone: 404.572.4600	
 
4

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

Financial Results (1)
 
 	•	 	Funds from operations (FFO) for the quarter ended March 31, 2010 was $69.2M, or $0.42 per share (diluted), compared to $68.4M, or $0.43 per share (diluted), for the same quarter in 2009. The increase in FFO from 2009 to 2010 was primarily due to reduced general and administrative expenses due to lower compensation related costs as well as reduced taxes and license fees. The $0.01 decrease in FFO per share reflects the dilutive effect of the 13.8 million shares of Class A common stock issued in February 2010.	
 
 	•	 	There were not any impairment charges or extraordinary items during the quarters ended March 31, 2010 and March 31, 2009; therefore, core funds from operations (Core FFO) is the same as FFO.	
 
 	•	 	Adjusted funds from operations (AFFO) for the quarter ended March 31, 2010 was $60.6M, or $0.37 per share (diluted), compared to $59.6M, or $0.37 per share (diluted), for the same quarter in 2009.	
 
 	•	 	During the quarters ended March 31, 2010 and March 31, 2009, the company paid to stockholders a quarterly dividend in the amount of $0.315 per share for all classes of common stock. The Company's dividend payout percentage for the quarters ended March 31, 2010 and March 31, 2009 was 77.7% of Core FFO and 88.8% of AFFO, and 73.4% of Core FFO and 84.3% of AFFO, respectively.	
Operations
 
 	•	 	On a square footage basis, our portfolio was 89.6% leased as of March 31, 2010 as compared to 90.1% and 91.1% at December 31, 2009 and March 31, 2009, respectively. The decrease in leased square footage over the past year is primarily due to 133 thousand square feet being vacated in May 2009 by Countrywide in Phoenix and 99 thousand square feet in January 2010 by Kirkland & Ellis in Chicago.	
 
 	•	 	The weighted average remaining lease term of our portfolio was 5.7 years(2) as of March 31, 2010 as compared to 5.9 years and 5.2 years at December 31, 2009 and March 31, 2009, respectively.	
 
 	•	 	Only 6.8% of our Annualized Lease Revenue from our December 31, 2009 Quarterly Supplemental Information was set to expire in 2010 and a majority of this expiration takes place in the fourth quarter. During the three months ended March 31, 2010, leasing activity was modest with the company completing a total of over 354 thousand square feet of leasing. From an office leasing perspective, we executed renewal leases for 87 thousand square feet and new tenant leases for 94 thousand square feet, with an average committed capital cost of $1.56 and $2.37 per square foot per year of lease term, respectively. From an industrial leasing perspective, we executed new tenant leases totaling 174 thousand square feet with an average committed capital cost of $0.14 per square foot per year of lease term.	
 
 	•	 	During the three months ended March 31, 2010, we retained tenants for 64% of the square footage associated with expiring leases, as compared to 78% for the year ended December 31, 2009.	
 
(1)	FFO, Core FFO and AFFO are supplemental non-GAAP financial measures. See pages 28-29 for definitions of non-GAAP financial measures. See pages 12 and 32 for reconciliations of FFO, Core FFO and AFFO to Net Income.	
(2)	Remaining lease term (after taking into account leases which had been executed but not commenced as of March 31, 2010) is weighted based on Annualized Lease Revenue, as defined on page 28.	
 
5

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

 
 	•	 	During the three months ended March 31, 2010, we executed two office leases greater than 20,000 SF. Please see information on those leases in the following chart.	

Tenant Name	  	Property	  	Property Location	  	Square Feet
Leased	  	Expiration
Year	  	Lease Type	
Internal Revenue Service	  	5000 Corporate Court	  	Holtsville, NY	  	101,178	  	2020	  	Renewal / Expansion	
New York Life Insurance Company	  	Fairway Center II	  	Brea, CA	  	29,855	  	2016	  	New	
Leasing Update
 
 	•	 	During 2010 and 2011, five leases are scheduled to expire that contribute greater than 1% of Annualized Lease Revenue. Information regarding the leasing status of the spaces associated with those leases is as follows:	

Tenant Name	  	Property	  	Property Location	  	Square
Footage	  	Percentage of Annualized
Lease Revenue (%)	 	Expiration (1)	  	Leasing Status	
Citicorp	  	111 Sylvan Avenue	  	Englewood Cliffs, NJ	  	409,604	  	1.2%	 	Q4 2010	  	Discussions with the current tenant for renewal of a portion of the space leased were terminated because the property is under contract to be sold in December 2010. Please see subsequent events on page 7.	
State Street Bank	  	1200 Crown Colony Drive	  	Quincy, MA	  	234,668	  	1.6%	 	Q1 2011	  	In discussions with the current tenant for a renewal of the entire space leased by the tenant.	
U.S. Government, Comptroller of the Currency	  	One Independence Square	  	Washington, D.C.	  	322,984	  	3.1%	 	Q2 2011	  	In discussions with the current tenant for a renewal of the entire space leased by the tenant.	
Zurich American Insurance Company	  	Windy Point II	  	Schaumburg, IL	  	300,034	  	1.8%	 	Q3 2011	  	Space has been substantially sublet by the tenant. In discussions with sublessees for direct leases.	
Kirkland & Ellis	  	Aon Center	  	Chicago, IL	  	331,887	  	1.8%	 	Q4 2011	  	Kirkland & Ellis is vacating; 260,641 SF of the space associated with their lease has been relet to KPMG beginning in August 2012.	
 
(1)	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 March 31, 2010

 
Financing and Capital Activity
 
 	•	 	As of March 31, 2010, our ratio of debt to total market capitalization was 29.1%; our ratio of debt to gross real estate assets was 30.7%; and our ratio of debt to total gross assets was 26.6%.	
 
 	•	 	During the first quarter of 2010, the Company did not acquire or sell any properties.	
 
 	•	 	On January 22, 2010, we filed an amendment to our charter to effect a recapitalization of our common stock as described further in our Securities and Exchange Commission (“SEC”) filings. Upon the effectiveness of the recapitalization, each share of our outstanding common stock converted automatically into: (a) 1/12th of a share of our Class A common stock; plus (b) 1/12th of a share of our Class B-1 common stock; plus (c) 1/12th of a share of our Class B-2 common stock; plus (d) 1/12th of a share of our Class B-3 common stock. The recapitalization had the effect of a one-for-three reverse stock split. Prior period share and per share information in this report has been restated to reflect this recapitalization.	
 
 	•	 	Our Class A common stock initially listed on the New York Stock Exchange on February 10, 2010. In connection with the listing, we issued approximately 13.8 million Class A common shares in an underwritten public offering. The shares were issued at a public offering price of $14.50 per share. Total net proceeds of $184.5 million were raised from the public offering; $114 million of the proceeds were used to pay down the outstanding balance on our $500 million revolving credit facility and the remainder is being used for general corporate purposes.	
 
 	•	 	On February 17, 2010, the share redemption plan and the former dividend reinvestment plan were terminated.	
Subsequent Events
 
 	•	 	On April 9, 2010, Moody’s upgraded Piedmont’s credit rating from Baa3 (with a Positive outlook) to Baa2 (with a Stable outlook). Moody’s indicated that the reasons for the rating increase were the Company’s conservative capital strategy, high-quality assets, diversified tenant base, high fixed charge coverage and solid liquidity.	
 
 	•	 	On May 5, 2010, Piedmont entered into a binding contract to sell the 111 Sylvan Avenue property in Englewood Cliffs, NJ. As of that date, the purchaser had completed its due diligence study of the asset and its deposit of 10% of the agreed upon purchase price of $55 million became non-refundable. The transaction is scheduled to close in December 2010, which will allow Piedmont to recognize the cash flow of the existing lease with Citicorp through its expiration in November 2010. Piedmont will reclassify 111 Sylvan Avenue from real estate assets held-for-use to real estate assets held-for-sale as of May 5, 2010. We anticipate recording a $9.8 million impairment charge as a result of marking the asset to fair value on May 5, 2010.	
Guidance for 2010
 
 	•	 	The following financial guidance for full-year 2010 is based on management’s expectations at this time:	

 	  	Low	  	 	  	High	
Net Income (before the $9.8 million impairment charge)	  	$	117	  	-	  	124 million	
Add: Depreciation & Amortization	  	$	152	  	-	  	154 million	
Core Funds from Operations (excludes impairment charges)	  	$	269	  	-	  	278 million	
Core Funds from Operations per diluted share (excludes impairment charges)	  	$	1.56	  	-	  	1.62	
Our anticipated $9.8 million charge on the 111 Sylvan Avenue property will not have an impact on our reported Core FFO, but it will impact FFO as previously estimated by roughly $0.055 per share. The opportunity to sell 111 Sylvan Avenue was not contemplated in our original FFO guidance. Note that individual quarters may fluctuate on both a cash and accrual basis due to timing of repairs and maintenance, capital expenditures and one-time revenue or expense events. In addition, the Company’s guidance is based on information available to management as of the date of this release and does not include any future potential litigation reserve adjustments, or the impact of any potential acquisitions, divestitures or impairments.
 
7

Piedmont Office Realty Trust, Inc.
Key Performance Indicators
Unaudited (in thousands)

This section includes non-GAAP financial measures, including, but not limited to, Core Earnings Before Interest Taxes Depreciation & Amortization (Core EBITDA), Funds from Operations (FFO), Core Funds from Operations (Core FFO) Adjusted Funds from Operations (AFFO), Same Store NOI, and NOI from Unconsolidated Joint Ventures. Definitions of these non-GAAP measures are provided on pages 28-29 and reconciliations are provided on pages 31-33.

 	  	Three Months Ended	 	
Selected Operating Data	  	3/31/2010	 	 	12/31/2009	 	 	9/30/2009	 	 	6/30/2009	 	 	3/31/2009	 	
Percent leased (1)	  	 	89.6	% 	 	 	90.1	% 	 	 	90.1	% 	 	 	90.1	% 	 	 	91.1	% 	
Rental income	  	$	112,106	  	 	$	112,000	  	 	$	112,874	  	 	$	111,994	  	 	$	112,946	  	
Total revenues	  	$	148,436	  	 	$	151,017	  	 	$	150,540	  	 	$	149,579	  	 	$	153,748	  	
Total operating expenses(2)	  	$	99,466	  	 	$	106,788	  	 	$	139,165	  	 	$	103,990	  	 	$	106,574	  	
Lease termination income (3)	  	$	496	  	 	$	1,981	  	 	$	0	  	 	$	782	  	 	$	0	  	
Impairment losses on real estate assets (4)	  	$	0	  	 	$	0	  	 	$	37,633	  	 	$	0	  	 	$	0	  	
Same Store NOI (5) (6)	  	$	91,929	  	 	$	87,850	  	 	$	90,095	  	 	$	90,019	  	 	$	94,405	  	
NOI from unconsolidated joint ventures	  	$	1,267	  	 	$	1,156	  	 	$	1,171	  	 	$	1,275	  	 	$	1,196	  	
Core EBITDA (5)	  	$	88,592	  	 	$	89,261	  	 	$	90,266	  	 	$	88,214	  	 	$	88,031	  	
Core FFO	  	$	69,198	  	 	$	69,484	  	 	$	70,471	  	 	$	68,546	  	 	$	68,418	  	
Core FFO per share - diluted	  	$	0.42	  	 	$	0.44	  	 	$	0.45	  	 	$	0.43	  	 	$	0.43	  	
AFFO (5)	  	$	60,582	  	 	$	47,709	  	 	$	60,756	  	 	$	59,303	  	 	$	59,577	  	
AFFO per share - diluted	  	$	0.37	  	 	$	0.30	  	 	$	0.39	  	 	$	0.37	  	 	$	0.37	  	
Gross dividends	  	$	53,777	  	 	$	49,733	  	 	$	49,565	  	 	$	49,389	  	 	$	50,248	  	
Dividends per share	  	$	0.315	  	 	$	0.315	  	 	$	0.315	  	 	$	0.315	  	 	$	0.315	  	
 	 	 	 	 	 	
Selected Balance Sheet Data	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total real estate assets	  	$	3,737,478	  	 	$	3,763,527	  	 	$	3,785,458	  	 	$	3,850,625	  	 	$	3,878,874	  	
Total gross real estate assets	  	$	4,571,837	  	 	$	4,575,638	  	 	$	4,601,835	  	 	$	4,636,750	  	 	$	4,631,104	  	
Total assets	  	$	4,428,410	  	 	$	4,395,345	  	 	$	4,431,851	  	 	$	4,494,484	  	 	$	4,542,347	  	
Net debt (7)	  	$	1,325,531	  	 	$	1,506,521	  	 	$	1,515,186	  	 	$	1,542,996	  	 	$	1,483,120	  	
Total liabilities	  	$	1,584,781	  	 	$	1,713,299	  	 	$	1,743,415	  	 	$	1,761,748	  	 	$	1,722,981	  	
 	 	 	 	 	 	
Ratios	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core EBITDA margin(8)	  	 	59.7	% 	 	 	59.1	% 	 	 	60.0	% 	 	 	59.0	% 	 	 	57.3	% 	
Fixed charge coverage ratio(9)	  	 	4.6	x 	 	 	4.6	x 	 	 	4.6	x 	 	 	4.5	x 	 	 	4.6	x 	
Core FFO payout percentage (10)	  	 	77.7	% 	 	 	71.6	% 	 	 	70.3	% 	 	 	72.1	% 	 	 	73.4	% 	
AFFO payout percentage (11)	  	 	88.8	% 	 	 	104.2	% 	 	 	81.6	% 	 	 	83.3	% 	 	 	84.3	% 	
Net debt to core EBITDA (12)	  	 	3.7	x 	 	 	4.2	x 	 	 	4.2	x 	 	 	4.4	x 	 	 	4.2	x 	
 
(1)	Percent leased represents 73 office properties and excludes industrial and unconsolidated joint venture properties. Percent leased decreased in the second quarter of 2009 as compared to the prior period primarily due to Countrywide vacating 133 thousand square feet at the end of their lease at our River Corporate Center building in Phoenix, AZ; it decreased in the first quarter of 2010 as compared to the prior period primarily due to Kirkland & Ellis vacating 99 thousand square feet at Aon Center in Chicago, IL.	
(2)	Total operating expenses in the third quarter of 2009 includes $35.1 million in impairment charges recognized on three wholly-owned assets.	
(3)	Lease termination income is included in ‘other rental income’ on the income statement.	
(4)	Impairment losses include both wholly owned and unconsolidated joint ventures.	
(5)	Same Store NOI, Core EBITDA and AFFO have been adjusted to exclude impairments on real estate assets as shown on pages 31 and 32.	
(6)	The higher Same Store NOI during the first quarter of 2009 and 2010 is primarily the result of the uneven contractual rental payment schedule associated with the net lease of our 1901 Market Street building in Philadelphia, PA, which results in larger cash receipts by approximately $4 million during the first quarter of each year.	
(7)	Net debt is calculated as total debt minus cash and cash equivalents.	
(8)	Core EBITDA margin is calculated as Core EBITDA divided by total revenues.	
(9)	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 three months ended March 31, 2010.	
(10)	Core FFO payout percentage is calculated as dividends paid during the applicable period divided by Core FFO.	
(11)	AFFO payout percentage is calculated as dividends paid during the applicable period divided by AFFO.	
(12)	Core EBITDA is annualized for the purposes of this calculation.	
 
8

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	March 31,
2010	 	 	December 31,
2009	 	 	September 30,
2009	 	 	June 30,
2009	 	 	March 31,
2009	 	
Assets:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Real estate, at cost:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Land assets	  	$	651,876	  	 	$	651,876	  	 	$	651,876	  	 	$	659,637	  	 	$	659,637	  	
Buildings and improvements	  	 	3,672,594	  	 	 	3,663,391	  	 	 	3,654,389	  	 	 	3,676,425	  	 	 	3,666,181	  	
Buildings and improvements, accumulated depreciation	  	 	(689,117	) 	 	 	(665,068	) 	 	 	(641,960	) 	 	 	(615,665	) 	 	 	(590,016	) 	
Intangible lease asset	  	 	235,022	  	 	 	243,312	  	 	 	280,087	  	 	 	284,292	  	 	 	284,292	  	
Intangible lease asset, accumulated amortization	  	 	(145,242	) 	 	 	(147,043	) 	 	 	(174,417	) 	 	 	(170,460	) 	 	 	(162,214	) 	
Construction in progress	  	 	12,345	  	 	 	17,059	  	 	 	15,483	  	 	 	16,396	  	 	 	20,994	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total real estate assets	  	 	3,737,478	  	 	 	3,763,527	  	 	 	3,785,458	  	 	 	3,850,625	  	 	 	3,878,874	  	
Investment in unconsolidated joint ventures	  	 	43,482	  	 	 	43,940	  	 	 	44,350	  	 	 	47,408	  	 	 	47,795	  	
Cash and cash equivalents	  	 	76,994	  	 	 	10,004	  	 	 	17,339	  	 	 	17,529	  	 	 	31,905	  	
Tenant receivables, net of allowance for doubtful accounts	  	 	33,152	  	 	 	33,071	  	 	 	38,819	  	 	 	32,105	  	 	 	38,331	  	
Straight line rent receivable	  	 	95,164	  	 	 	95,371	  	 	 	92,858	  	 	 	91,086	  	 	 	88,960	  	
Notes receivable	  	 	59,407	  	 	 	58,739	  	 	 	58,523	  	 	 	57,990	  	 	 	57,172	  	
Due from unconsolidated joint ventures	  	 	1,202	  	 	 	1,083	  	 	 	1,072	  	 	 	1,198	  	 	 	1,109	  	
Prepaid expenses and other assets	  	 	18,600	  	 	 	21,456	  	 	 	22,220	  	 	 	20,448	  	 	 	14,827	  	
Goodwill	  	 	180,097	  	 	 	180,097	  	 	 	180,097	  	 	 	180,097	  	 	 	180,097	  	
Deferred financing costs, less accumulated amortization	  	 	6,509	  	 	 	7,205	  	 	 	7,901	  	 	 	8,547	  	 	 	9,210	  	
Deferred lease costs, less accumulated amortization	  	 	176,325	  	 	 	180,852	  	 	 	183,214	  	 	 	187,451	  	 	 	194,067	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total assets	  	$	4,428,410	  	 	$	4,395,345	  	 	$	4,431,851	  	 	$	4,494,484	  	 	$	4,542,347	  	

Liabilities:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Lines of credit and notes payable	  	$	1,402,525	  	 	$	1,516,525	  	 	$	1,532,525	  	 	$	1,560,525	  	 	$	1,515,025	  	
Accounts payable, accrued expenses, and accrued capital expenditures	  	 	83,172	  	 	 	97,747	  	 	 	111,345	  	 	 	98,803	  	 	 	97,571	  	
Deferred income	  	 	39,079	  	 	 	34,506	  	 	 	29,788	  	 	 	28,412	  	 	 	32,085	  	
Intangible lease liabilities, less accumulated amortization	  	 	57,689	  	 	 	60,655	  	 	 	64,082	  	 	 	67,143	  	 	 	70,169	  	
Interest rate swap	  	 	2,316	  	 	 	3,866	  	 	 	5,675	  	 	 	6,865	  	 	 	8,131	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities	  	 	1,584,781	  	 	 	1,713,299	  	 	 	1,743,415	  	 	 	1,761,748	  	 	 	1,722,981	  	
 	 	 	 	 	 	
Redeemable common stock(1)	  	 	—  	  	 	 	75,164	  	 	 	61,716	  	 	 	52,230	  	 	 	136,926	  	
 	 	 	 	 	 	
Shareholders’ equity(2):	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Class A common stock	  	 	534	  	 	 	397	  	 	 	395	  	 	 	394	  	 	 	402	  	
Class B-1 common stock	  	 	397	  	 	 	397	  	 	 	395	  	 	 	394	  	 	 	402	  	
Class B-2 common stock	  	 	397	  	 	 	397	  	 	 	396	  	 	 	394	  	 	 	402	  	
Class B-3 common stock	  	 	397	  	 	 	398	  	 	 	396	  	 	 	395	  	 	 	402	  	
Additional paid in capital	  	 	3,659,257	  	 	 	3,477,168	  	 	 	3,461,698	  	 	 	3,449,489	  	 	 	3,516,053	  	
Cumulative distributions in excess of earnings	  	 	(820,878	) 	 	 	(798,561	) 	 	 	(774,774	) 	 	 	(716,949	) 	 	 	(695,536	) 	
Redeemable common stock(1)	  	 	—  	  	 	 	(75,164	) 	 	 	(61,716	) 	 	 	(52,230	) 	 	 	(136,926	) 	
Other comprehensive loss	  	 	(2,316	) 	 	 	(3,866	) 	 	 	(5,675	) 	 	 	(6,865	) 	 	 	(8,131	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Piedmont stockholders’ equity	  	 	2,837,788	  	 	 	2,601,166	  	 	 	2,621,115	  	 	 	2,675,022	  	 	 	2,677,068	  	
Non-controlling interest	  	 	5,841	  	 	 	5,716	  	 	 	5,605	  	 	 	5,484	  	 	 	5,372	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total stockholders’ equity	  	 	2,843,629	  	 	 	2,606,882	  	 	 	2,626,720	  	 	 	2,680,506	  	 	 	2,682,440	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities, redeemable common stock and stockholders’ equity	  	$	4,428,410	  	 	$	4,395,345	  	 	$	4,431,851	  	 	$	4,494,484	  	 	$	4,542,347	  	

All classes of common stock outstanding at end of period  (2)	  	 	172,517	  	 	 	158,917	  	 	 	158,215	  	 	 	157,668	  	 	 	160,760	  	
 
(1)	During the three months ended March 31, 2010, the board of directors terminated the share redemption plan. We are no longer required by GAAP to reclassify any of our common stock outstanding as redeemable common stock.	
(2)	During the three months ended March 31, 2010, we filed an amendment to our charter to effect a recapitalization of our common stock as described further in our SEC filings. Upon the effectiveness of the recapitalization, each share of our outstanding common stock converted automatically into: (a) 1/12th of a share of our Class A common stock; plus (b) 1/12th of a share of our Class B-1 common stock; plus (c) 1/12th of a share of our Class B-2 common stock; plus (d) 1/12th of a share of our Class B-3 common stock. The recapitalization had the effect of a one-for-three reverse stock split. Prior period share and per share information in this report has been restated to reflect this recapitalization.	
 
9

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	
 	  	3/31/2010	 	 	12/31/2009	 	 	9/30/2009	 	 	6/30/2009	 	 	3/31/2009	 	
Revenues:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental income	  	$	112,106	  	 	$	112,000	  	 	$	112,874	  	 	$	111,994	  	 	$	112,946	  	
Tenant reimbursements	  	 	35,081	  	 	 	36,108	  	 	 	36,924	  	 	 	36,059	  	 	 	40,105	  	
Property management fee revenue	  	 	753	  	 	 	928	  	 	 	742	  	 	 	744	  	 	 	697	  	
Other rental income	  	 	496	  	 	 	1,981	  	 	 	—  	  	 	 	782	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	148,436	  	 	 	151,017	  	 	 	150,540	  	 	 	149,579	  	 	 	153,748	  	
 	 	 	 	 	 	
Operating expenses:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property operating costs	  	 	55,369	  	 	 	57,301	  	 	 	57,618	  	 	 	55,639	  	 	 	60,131	  	
Depreciation	  	 	26,080	  	 	 	27,090	  	 	 	26,792	  	 	 	26,561	  	 	 	25,630	  	
Amortization	  	 	11,387	  	 	 	16,171	  	 	 	13,991	  	 	 	13,695	  	 	 	13,442	  	
Impairment loss on real estate assets	  	 	—  	  	 	 	—  	  	 	 	35,063	  	 	 	—  	  	 	 	—  	  	
General and administrative	  	 	6,630	  	 	 	6,226	  	 	 	5,701	  	 	 	8,095	  	 	 	7,371	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses	  	 	99,466	  	 	 	106,788	  	 	 	139,165	  	 	 	103,990	  	 	 	106,574	  	

Real estate operating income	  	 	48,970	  	 	 	44,229	  	 	 	11,375	  	 	 	45,589	  	 	 	47,174	  	
 	 	 	 	 	 	
Other income (expense):	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest expense	  	 	(19,091	) 	 	 	(19,489	) 	 	 	(19,518	) 	 	 	(19,393	) 	 	 	(19,343	) 	
Interest and other income	  	 	969	  	 	 	652	  	 	 	1,989	  	 	 	1,147	  	 	 	662	  	
Equity in income of unconsolidated joint ventures	  	 	737	  	 	 	673	  	 	 	(1,985	) 	 	 	753	  	 	 	663	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total other income (expense)	  	 	(17,385	) 	 	 	(18,164	) 	 	 	(19,514	) 	 	 	(17,493	) 	 	 	(18,018	) 	

Net income	  	 	31,585	  	 	 	26,065	  	 	 	(8,139	) 	 	 	28,096	  	 	 	29,156	  	
 	 	 	 	 	 	
Less: Net income attributable to noncontrolling interest	  	 	(125	) 	 	 	(119	) 	 	 	(121	) 	 	 	(120	) 	 	 	(118	) 	

Net income attributable to Piedmont	  	$	31,460	  	 	$	25,946	  	 	$	(8,260	) 	 	$	27,976	  	 	$	29,038	  	

Weighted average common shares outstanding - diluted	  	 	165,200	  	 	 	158,393	  	 	 	157,760	  	 	 	158,304	  	 	 	159,878	  	
 	 	 	 	 	 	
Net income per share available to common stockholders - basic and diluted	  	$	0.19	  	 	$	0.16	  	 	$	(0.05	) 	 	$	0.18	  	 	$	0.18	  	

10

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	
 	  	3/31/2010	 	 	3/31/2009	 	 	Change	 	 	Change	 	
Revenues:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental income	  	$	112,106	  	 	$	112,946	  	 	$	(840	) 	 	-0.7	% 	
Tenant reimbursements	  	 	35,081	  	 	 	40,105	  	 	 	(5,024	) 	 	-12.5	% 	
Property management fee revenue	  	 	753	  	 	 	697	  	 	 	56	  	 	8.0	% 	
Other rental income	  	 	496	  	 	 	—  	  	 	 	496	  	 	0.0	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	148,436	  	 	 	153,748	  	 	 	(5,312	) 	 	-3.5	% 	
 	 	 	 	 	
Operating expenses:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property operating costs	  	 	55,369	  	 	 	60,131	  	 	 	4,762	  	 	7.9	% 	
Depreciation	  	 	26,080	  	 	 	25,630	  	 	 	(450	) 	 	-1.8	% 	
Amortization	  	 	11,387	  	 	 	13,442	  	 	 	2,055	  	 	15.3	% 	
Impairment loss on real estate assets	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	0.0	% 	
General and administrative	  	 	6,630	  	 	 	7,371	  	 	 	741	  	 	10.1	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses	  	 	99,466	  	 	 	106,574	  	 	 	7,108	  	 	6.7	% 	

Real estate operating income	  	 	48,970	  	 	 	47,174	  	 	 	1,796	  	 	3.8	% 	
 	 	 	 	 	
Other income (expense):	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest expense	  	 	(19,091	) 	 	 	(19,343	) 	 	 	252	  	 	1.3	% 	
Interest and other income	  	 	969	  	 	 	662	  	 	 	307	  	 	46.4	% 	
Equity in income of unconsolidated joint ventures	  	 	737	  	 	 	663	  	 	 	74	  	 	11.2	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total other income (expense)	  	 	(17,385	) 	 	 	(18,018	) 	 	 	633	  	 	3.5	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	 	31,585	  	 	 	29,156	  	 	 	2,429	  	 	8.3	% 	
 	 	 	 	 	
Less: Net income attributable to noncontrolling interest	  	 	(125	) 	 	 	(118	) 	 	 	(7	) 	 	-5.9	% 	

Net income attributable to Piedmont	  	$	31,460	  	 	$	29,038	  	 	$	2,422	  	 	8.3	% 	

Weighted average common shares outstanding - diluted	  	 	165,200	  	 	 	159,878	  	 	 	 	 	 	 	 	
 	 	 	 	 	
Net income per share available to common stockholders - basic and diluted	  	$	0.19	  	 	$	0.18	  	 	 	 	 	 	 	 	

11

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

 
 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	
 	  	3/31/2010	 	 	3/31/2009	 	
 	 	 	
Net income attributable to Piedmont	  	$	31,460	  	 	$	29,038	  	
 	 	 	
Add:	  	 	 	 	 	 	 	 	
Depreciation (1) (2)	  	 	26,250	  	 	 	25,837	  	
Amortization (1)	  	 	11,488	  	 	 	13,543	  	
Deduct:	  	 	 	 	 	 	 	 	
Gain on sale of property (1)	  	 	—  	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	
Funds from operations	  	 	69,198	  	 	 	68,418	  	
 	 	 	
Add:	  	 	 	 	 	 	 	 	
Impairment loss on real estate assets (1)	  	 	—  	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	
Core funds from operations	  	 	69,198	  	 	 	68,418	  	
 	 	 	
Add:	  	 	 	 	 	 	 	 	
Depreciation of non real estate assets	  	 	178	  	 	 	152	  	
Stock-based and other non-cash compensation expense	  	 	653	  	 	 	1,005	  	
Loss on extinguishment of debt	  	 	—  	  	 	 	—  	  	
Deferred financing cost amortization	  	 	696	  	 	 	708	  	
Deduct:	  	 	 	 	 	 	 	 	
Straight-line effects of lease revenue (1)	  	 	1,073	  	 	 	2,696	  	
Amortization of lease-related intangibles (1)	  	 	(1,426	) 	 	 	(1,230	) 	
Income from amortization of discount on purchase of mezzanine loans	  	 	(668	) 	 	 	(367	) 	
Non-incremental capital expenditures(3)	  	 	(9,122	) 	 	 	(11,805	) 	
 	  	 	 	 	 	 	 	 	
Adjusted funds from operations	  	$	60,582	  	 	$	59,577	  	

Weighted average common shares outstanding - diluted	  	 	165,200	  	 	 	159,878	  	
 	 	 	
Funds from operations per share (diluted)	  	$	0.42	  	 	$	0.43	  	
Core funds from operations per share (diluted)	  	$	0.42	  	 	$	0.43	  	
Adjusted funds from operations per share (diluted)	  	$	0.37	  	 	$	0.37	  	
 
(1)	Includes adjustments for wholly-owned properties and for our proportionate ownership in unconsolidated joint ventures.	
(2)	Excludes depreciation of non real estate assets.	
(3)	Non-incremental capital expenditures are defined on page 29.	
 
12

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

 
 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	
 	  	3/31/2010	 	 	3/31/2009	 	
 	 	 	
Net income attributable to Piedmont	  	$	31,460	  	 	$	29,038	  	
 	 	 	
Add:	  	 	 	 	 	 	 	 	
Non-controlling interest	  	 	125	  	 	 	118	  	
Interest expense	  	 	19,091	  	 	 	19,343	  	
Depreciation	  	 	26,428	  	 	 	25,989	  	
Amortization	  	 	11,488	  	 	 	13,543	  	
Impairment loss on real estate assets	  	 	—  	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	
Core EBITDA	  	 	88,592	  	 	 	88,031	  	
 	 	 	
Add:	  	 	 	 	 	 	 	 	
General & administrative expenses(1)	  	 	6,695	  	 	 	7,407	  	
Deduct:	  	 	 	 	 	 	 	 	
Interest and other income	  	 	(969	) 	 	 	(662	) 	
Lease termination income	  	 	(496	) 	 	 	—  	  	
Lease termination expense - straight line rent & FAS 141 writeoffs	  	 	67	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	
Core net operating income (accrual basis)	  	 	93,889	  	 	 	94,776	  	
Deduct:	  	 	 	 	 	 	 	 	
Straight line rent adjustment	  	 	1,006	  	 	 	2,696	  	
FAS 141 adjustment	  	 	(1,426	) 	 	 	(1,230	) 	
 	  	 	 	 	 	 	 	 	
Core net operating income (cash basis)	  	 	93,469	  	 	 	96,242	  	
Deduct:	  	 	 	 	 	 	 	 	
Acquisitions	  	 	—  	  	 	 	—  	  	
Industrial Properties	  	 	(273	) 	 	 	(641	) 	
Unconsolidated joint ventures	  	 	(1,267	) 	 	 	(1,196	) 	
 	  	 	 	 	 	 	 	 	
Same Store NOI	  	$	91,929	  	 	$	94,405	  	
 	  	 	 	 	 	 	 	 	
Change period over period	  	 	-2.6	% 	 	 	N/A	  	
Same Store Net Operating Income
Top Seven Markets

 	  	Three Months Ended	
 	  	3/31/2010	  	3/31/2009	
 	  	$	  	%	  	$	  	%	
Chicago (2)	  	$	18,311	  	19.9	  	$	21,071	  	22.3	
Washington, D.C.(3)	  	 	19,511	  	21.2	  	 	18,565	  	19.7	
New York(4)	  	 	13,720	  	14.9	  	 	15,318	  	16.2	
Minneapolis	  	 	5,584	  	6.1	  	 	4,913	  	5.2	
Los Angeles(5)	  	 	5,321	  	5.8	  	 	6,057	  	6.4	
Dallas	  	 	4,090	  	4.4	  	 	4,107	  	4.4	
Boston	  	 	3,730	  	4.1	  	 	3,796	  	4.0	
Other	  	 	21,662	  	23.6	  	 	20,578	  	21.8	
 	  	 	 	  	 	  	 	 	  	 	
Total	  	$	91,929	  	100.0	  	$	94,405	  	100.0	

(1)	Includes general & administrative expenses associated with our unconsolidated joint venture assets.	
(2)	The decrease in Chicago Same Store Net Operating Income for the three months ended March 31, 2010 as compared to the same period in 2009 is primarily related to the previously announced 99 thousand square foot partial lease expiration with Kirkland & Ellis at Aon Center in Chicago, IL as well as a rental abatement concession associated with a lease renewal at Windy Point I in Schaumburg, IL.	
(3)	The increase in Washington, D.C. Same Store Net Operating Income for the three months ended March 31, 2010 as compared to the same period in 2009 is primarily related to contractual rental increases pursuant to existing leases and reduced property operating costs.	
(4)	The decrease in New York Same Store Net Operating Income for three months ended March 31, 2010 as compared to the same period in 2009 is primarily related to a rental abatement associated with the lease restructure/extension with the State of New York at 60 Broad Street in New York, NY which reduced income during the first quarter of 2010 as compared to 2009 by approximately $1.5 million.	
(5)	The decrease in Los Angeles Same Store Net Operating Income for the three months ended March 31, 2010 as compared to the previous period is due to a number of factors, including holdover rents recognized in 2009 for a lease that terminated in 2008 and a lease default by a bank that leased over 25 thousand square feet at our 1901 Main Street building in Irvine, CA.	
 
13

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

 
 	 	 	 	 	 	 	 	 	
 	  	As of
March 31, 2010	 	 	As of
December 31, 2009	 	
Common stock price(1)	  	$	19.85	  	 	$	N/A	  	
 	 	 	
Total shares outstanding (2)	  	 	172,517	  	 	 	158,917	  	
Class A common stock	  	 	53,479	  	 	 	39,729	  	
Class B-1 common stock	  	 	39,679	  	 	 	39,729	  	
Class B-2 common stock	  	 	39,679	  	 	 	39,729	  	
Class B-3 common stock	  	 	39,679	  	 	 	39,729	  	
 	 	 	
Equity market capitalization(3)	  	$	3,424,469	  	 	$	N/A	  	
 	 	 	
Total consolidated debt	  	$	1,402,525	  	 	$	1,516,525	  	
 	 	 	
Total market capitalization(1)	  	$	4,826,994	  	 	$	N/A	  	
 	 	 	
Total debt / Total market capitalization	  	 	29.1	% 	 	 	N/A	  	
 	 	 	
Total gross real estate assets	  	$	4,571,837	  	 	$	4,575,638	  	
 	 	 	
Total debt / Total gross real estate assets (4)	  	 	30.7	% 	 	 	33.1	% 	
 	 	 	
Total debt / Total gross assets (5)	  	 	26.6	% 	 	 	29.1	% 	
 
(1)	Reflects closing common stock price as of the end of the reporting period. The company was not listed on a public exchange as of December 31, 2009. Our Class A common stock initially listed on the New York Stock Exchange on February 10, 2010.	
(2)	On January 22, 2010, we filed an amendment to our charter to effect a recapitalization of our common stock as described further in our SEC filings. Upon the effectiveness of the recapitalization, each share of our outstanding common stock converted automatically into: (a) 1/12th of a share of our Class A common stock; plus (b) 1/12th of a share of our Class B-1 common stock; plus (c) 1/12th of a share of our Class B-2 common stock; plus (d) 1/12th of a share of our Class B-3 common stock. The recapitalization had the effect of a one-for-three reverse stock split. Prior period share and per share information in this report has been restated to reflect this recapitalization.	
(3)	Market value of common shares is defined as the total number of shares of all classes of our common stock outstanding multiplied by the closing price of our Class A common stock at the end of the reporting period, as further qualified in footnote (1) above.	
(4)	Total debt to total gross real estate assets ratio for the current period is defined as total debt divided by Piedmont’s gross real estate assets. Gross real estate assets is defined as total real estate assets with the add back of accumulated depreciation and accumulated amortization related to real estate assets.	
(5)	Total debt to total gross assets ratio for the current period 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.	
 
14

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

Floating Rate & Fixed Rate Debt

Debt (1)	  	Amount	 	 	 	Weighted Average
Interest Rate	 	 	 	  	Weighted Average
Maturity	  	 	
Floating Rate	  	$	0	 	(2)	 	0.0	% 	 	(3)	  	29.0 months	  	 	
Fixed Rate (4)	  	 	1,402,525	 	 	 	5.1	% 	 	 	  	50.3 months	  	 	
 	  	 	 	 	 	 	 	 	 	 	  	 	  	 	
Total	  	$	1,402,525	 	 	 	5.1	% 	 	 	  	50.3 months	  	 	
 	  	 	 	 	 	 	 	 	 	 	  	 	  	 	
Unsecured & Secured Debt

 	 	 	 	 	 	 	 	 	 	 	 	 	
Debt (1)	  	Amount	  	Weighted Average
Interest Rate	 	 	Weighted Average
Maturity	 	 	 	 	
Unsecured	  	$	250,000	  	5.0	% 	 	14.9 months	 	(4)	 	 	
Secured	  	 	1,152,525	  	5.2	% 	 	57.9 months	 	 	 	 	
 	  	 	 	  	 	 	 	 	 	 	 	 	
Total	  	$	1,402,525	  	5.1	% 	 	50.3 months	 	 	 	 	
 	  	 	 	  	 	 	 	 	 	 	 	 	
Debt Maturities

 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Maturity Year	  	Secured Debt (1)	  	Unsecured Debt (1)	 	 	Weighted Average
Interest Rate	 	 	Percentage of
Total	 	
2010	  	$	0	  	$	0	  	 	N/A	  	 	N/A	  	
2011	  	 	0	  	 	250,000	(4) 	 	5.0	% 	 	17.8	% 	
2012	  	 	45,000	  	 	0	(2) 	 	5.2	% 	 	3.2	% 	
2013	  	 	0	  	 	0	  	 	N/A	  	 	N/A	  	
2014	  	 	695,000	  	 	0	  	 	4.9	% 	 	49.6	% 	
2015	  	 	105,000	  	 	0	  	 	5.3	% 	 	7.5	% 	
2016	  	 	167,525	  	 	0	  	 	5.6	% 	 	11.9	% 	
2017	  	 	140,000	  	 	0	  	 	5.8	% 	 	10.0	% 	
 	  	 	 	  	 	 	 	 	 	 	 	 	 	
TOTAL	  	$	1,152,525	  	$	250,000	  	 	5.1	% 	 	100.0	% 	

(1)	All of Piedmont’s outstanding debt as of March 31, 2010 is interest-only debt.	
(2)	Amount represents the outstanding balance as of March 31, 2010 on the $500M Unsecured Line of Credit, which matures August 2011. Management intends to exercise the one-year extension option to extend the maturity date to August 2012. The payment of a 15 bp fee will be required to extend the term of this facility.	
(3)	Rate is equal to the weighted average interest on all outstanding draws as of March 31, 2010. Piedmont may select from multiple interest rate options with each draw, including the prime rate and various length LIBOR locks. All LIBOR selections are subject to an additional spread of .475% over the selected rate based on Piedmont’s current credit rating.	
(4)	The $250 Million Unsecured Term Loan has a stated variable rate; however, Piedmont entered into an interest rate swap agreement which effectively fixes the interest rate on this loan at 4.97% through June 28, 2010. In January 2010, in connection with the notification of Piedmont’s intent to extend the maturity of the loan by one year, Piedmont entered into four forward interest rate swap agreements with several counterparties to effectively fix the interest rate on the $250 Million Unsecured Term Loan at 2.36% during the one-year extension period. The $250 Million Unsecured Term Loan is, therefore, included in fixed rate debt. The $250M Unsecured Term Loan may be extended, upon payment of a 25 basis point fee, to June 2011. Piedmont gave notice in January 2010 of its intent to extend this facility to June 2011. It is, therefore, listed as a 2011 debt maturity.	
 
15

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

 
 	 	 	 	 	 	 	 	 	 	 	 	
Facility	  	Property	  	Rate(1)	 	 	Maturity	 	 	Amount
Outstanding as
of  March 31,
2010	
 	 	 	 	 	
Secured (Fixed)	  	 	  	 	 	 	 	 	 	 	 	
$45.0 Million Fixed-Rate Loan	  	4250 North Fairfax	  	5.20	% 	 	6/1/2012	  	 	$	45,000	
35 West Wacker Building Mortgage Note	  	35 West Wacker Drive	  	5.10	% 	 	1/1/2014	  	 	 	120,000	
Aon Center Chicago Mortgage Note	  	Aon Center	  	4.87	% 	 	5/1/2014	  	 	 	200,000	
Aon Center Chicago Mortgage Note	  	Aon Center	  	5.70	% 	 	5/1/2014	  	 	 	25,000	
Secured Pooled Facility	  	Nine Property Collateralized Pool(2)	  	4.84	% 	 	6/7/2014	  	 	 	350,000	
$105.0 Million Fixed-Rate Loan	  	US Bancorp Center	  	5.29	% 	 	5/11/2015	  	 	 	105,000	
$125.0 Million Fixed-Rate Loan	  	Four Property Collateralized Pool(3)	  	5.50	% 	 	4/1/2016	  	 	 	125,000	
$42.5 Million Fixed-Rate Loan	  	Las Colinas Corporate Center I & II	  	5.70	% 	 	10/11/2016	  	 	 	42,525	
WDC Mortgage Notes	  	1201 & 1225 Eye Street	  	5.76	% 	 	11/1/2017	  	 	 	140,000	

Subtotal/Weighted Average (4)	  	 	  	5.16	% 	 	 	 	 	$	1,152,525	
 	 	 	 	 	
Unsecured (Variable)	  	 	  	 	 	 	 	 	 	 	 	
$250 Million Unsecured Term Loan(5)	  	N/A	  	LIBOR +  1.50	%(5) 	 	6/28/2010	(6) 	 	$	250,000	
$500 Million Unsecured Facility(7)	  	N/A	  	0	%(8) 	 	8/30/2011	(9) 	 	 	0	

Subtotal/Weighted Average (4)	  	 	  	4.97	% 	 	 	 	 	$	250,000	
 	  	 	  	 	 	 	 	 	 	 	 	
Total/ Weighted Average (4)	  	 	  	5.13	% 	 	 	 	 	$	1,402,525	

(1)	All of Piedmont’s outstanding debt as of March 31, 2010 is interest-only debt.	
(2)	The nine property collateralized pool includes 1200 Crown Colony Drive, Braker Pointe III, 2 Gatehall Drive, One and Two Independence Square, 2120 West End Avenue, 111 Sylvan Avenue, 200 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 March 31, 2010.	
(5)	The $250 Million Unsecured Term Loan has a stated variable rate; however, Piedmont entered into an interest rate swap agreement which effectively fixes the interest rate on this loan at 4.97% through June 28, 2010. In January 2010, in connection with the notification of Piedmont’s intent to extend the maturity of the loan by one year, Piedmont entered into four forward interest rate swap agreements with several counterparties to effectively fix the interest rate on the $250 Million Unsecured Term Loan at 2.36% during the one-year extension period.	
(6)	Piedmont may extend the term for one additional year provided Piedmont is not then in default and upon the payment of a 25 basis point extension fee. In January 2010, Piedmont notified the administrative agent of its intent to extend the loan.	
(7)	All of Piedmont’s outstanding debt as of March 31, 2010 is term debt with the exception of the $500 Million Unsecured Facility.	
(8)	Rate is equal to the weighted-average interest rate on all outstanding draws as of March 31, 2010. Piedmont may select from multiple interest rate options with each draw, including the prime rate and various length LIBOR locks. All LIBOR selections are subject to an additional spread (0.475% as of March 31, 2010) over the selected rate based on Piedmont’s current credit rating.	
(9)	Piedmont may extend the term for one additional year provided Piedmont is not then in default and upon the payment of a 15 basis point extension fee.	
 
16

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

 
 	 	 	 	 	
Debt Covenant Compliance (1)	  	Required	  	Actual	
 	 	 	
Maximum Leverage Ratio	  	0.60	  	0.28	
 	 	 	
Minimum Fixed Charge Coverage Ratio (2)	  	1.50	  	4.60	
 	 	 	
Maximum Secured Indebtedness Ratio	  	0.40	  	0.23	
 	 	 	
Minimum Unencumbered Leverage Ratio	  	1.60	  	9.32	
 	 	 	
Minimum Unencumbered Interest Coverage Ratio(3)	  	1.75	  	10.55	
 	 	 	
Maximum Certain Permitted Investments Ratio(4)	  	0.35	  	0.02	
 
(1)	Debt covenant compliance calculations relate to specific calculations detailed in our term loan and line of credit agreements.	
(2)	Defined as EBITDA for the trailing four quarters (including the company’s share of EBITDA from unconsolidated interests), less one-time or non-recurring gains or losses, less a $0.15 per square foot capital reserve, and excluding the impact of straight line rent leveling adjustments and amortization of intangibles divided by the company’s share of fixed charges, as more particularly described in the credit agreements.	
(3)	Defined as net operating income for the trailing four quarters for unencumbered assets (including the company’s share of net operating income from unconsolidated interests that are unencumbered) less a $0.15 per square foot capital reserve divided by the company’s share of interest expense associated with unsecured financings only, as more particularly described in the credit agreements.	
(4)	Permitted investments are defined as unconsolidated interests, debt investments, unimproved land, and development projects. Investments in permitted investments shall not exceed 35% of total asset value.	

Other Debt Coverage Ratios	  	Three months ended
March 31, 2010	  	Year ended
December 31,  2009	
 	 	 	
Net debt / Core EBITDA	  	3.7 x	  	4.2 x	
 	 	 	
Fixed charge coverage ratio(5)	  	4.6 x	  	4.6 x	
 	 	 	
Interest coverage ratio(6)	  	4.6 x	  	4.6 x	
 
(5)	Fixed charge coverage is calculated as Core EBITDA divided by the sum of interest expense, principal amortization, capitalized interest and preferred dividends. We had no capitalized interest, principal amortization or preferred dividends during the period ending March 31, 2010.	
(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 period ending March 31, 2010.	
 
17

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Credit Rating (1)	  	Number of
Properties	  	Lease
Expiration(s)  (2)	  	Annualized Lease
Revenue  (3)	  	Percentage of
Annualized Lease
Revenue (%)	  	Leased Square
Footage	  	Percentage of
Leased Square
Footage (%)	
U.S. Government	  	AAA	  	10	  	(4)  	  	$	75,597	  	13.0	  	1,684	  	9.3	
BP Corporation	  	AA	  	1	  	2013	  	 	32,184	  	5.5	  	784	  	4.3	
Leo Burnett	  	BBB+	  	2	  	2019	  	 	28,054	  	4.8	  	695	  	3.8	
US Bancorp	  	A+	  	1	  	2014	  	 	22,002	  	3.8	  	715	  	4.0	
Nestle	  	AA	  	1	  	2015	  	 	18,695	  	3.2	  	480	  	2.7	
Winston & Strawn	  	No rating available  (5)	  	1	  	2024	  	 	18,572	  	3.2	  	417	  	2.3	
State of New York	  	AA	  	1	  	2019	  	 	18,011	  	3.1	  	480	  	2.7	
Sanofi-aventis	  	AA-	  	2	  	2012	  	 	17,338	  	3.0	  	454	  	2.5	
Independence Blue Cross	  	No rating available	  	1	  	2023	  	 	14,897	  	2.6	  	761	  	4.2	
Kirkland & Ellis	  	No rating available  (5)	  	1	  	2011	  	 	11,605	  	2.0	  	366	  	2.0	
Zurich American	  	AA-	  	1	  	2011	  	 	10,685	  	1.8	  	300	  	1.7	
Shaw	  	BB+	  	1	  	2018	  	 	9,546	  	1.6	  	313	  	1.7	
State Street Bank	  	AA-	  	1	  	2011	  	 	9,414	  	1.6	  	235	  	1.3	
DDB Needham	  	A-	  	1	  	2018	  	 	8,829	  	1.5	  	244	  	1.3	
Lockheed Martin	  	A-	  	3	  	2014	  	 	8,796	  	1.5	  	284	  	1.6	
City of New York	  	AA	  	1	  	2020	  	 	7,677	  	1.3	  	270	  	1.5	
Citigroup	  	A	  	2	  	2010	  	 	7,555	  	1.3	  	415	  	2.3	
Gemini	  	A+	  	1	  	2013	  	 	7,532	  	1.3	  	205	  	1.1	
Gallagher	  	No rating available	  	1	  	2018	  	 	6,995	  	1.2	  	307	  	1.7	
Caterpillar Financial	  	A	  	1	  	2022	  	 	6,975	  	1.2	  	312	  	1.7	
Other	  	 	  	 	  	Various	  	 	240,928	  	41.5	  	8,395	  	46.3	
 	  	 	  	 	  	 	  	 	 	  	 	  	 	  	 	
Total	  	 	  	 	  	 	  	$	581,887	  	100.0	  	18,116	  	100.0	

 
(1)	Credit rating may reflect credit rating of parent or guarantor.	
(2)	Represents the expiration year of the majority of the square footage leased by the tenant.	
(3)	Please refer to page 28 for the definition of Annualized Lease Revenue.	
(4)	There are several leases with several different agencies of the U.S. Government with expiration years ranging from 2011 to 2025.	
(5)	While no ratings are available for Winston & Strawn and Kirkland & Ellis, these tenants are ranked #34 and #7, respectively, in the 2009 AmLaw 100 ranking (based on 2008 financial data), a publication of The American Lawyer Magazine, which annually ranks the top-grossing, most profitable law firms.	
 
18

Piedmont Office Realty Trust, Inc.
Credit Rating & Lease Distribution Information
As of March 31, 2010
(in thousands)

 
 	 	 	 	 	 	
Tenant Credit Rating (1)	  	Annualized Lease
Revenue	  	Percentage of
Annualized Lease
Revenue (%)	
AAA	  	$	81,547	  	14.0	
AA	  	 	127,268	  	21.9	
A	  	 	95,593	  	16.4	
BBB	  	 	69,083	  	11.9	
BB	  	 	26,575	  	4.6	
B	  	 	16,699	  	2.9	
Below	  	 	1,401	  	0.2	
Not rated	  	 	163,721	  	28.1	
 	  	 	 	  	 	
Total	  	$	581,887	  	100.0	
 	  	 	 	  	 	
Lease Distribution
As of March 31, 2010

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Number of
Leases	  	Percentage of
Leases (%)	  	Annualized
Lease Revenue
($’s in
thousands)	  	Percentage of
Annualized Lease
Revenue (%)	  	Leased Square
Footage (in
thousands)	  	Percentage of
Leased Square
Footage (%)	
2,500 or Less	  	155	  	34.4	  	$	12,549	  	2.2	  	118	  	0.6	
2,501 - 10,000	  	119	  	26.5	  	 	22,222	  	3.8	  	617	  	3.4	
10,001 - 20,000	  	45	  	10.0	  	 	20,841	  	3.6	  	649	  	3.6	
20,001 - 40,000	  	45	  	10.0	  	 	38,576	  	6.6	  	1,243	  	6.9	
40,001 - 100,000	  	32	  	7.1	  	 	61,648	  	10.6	  	2,019	  	11.1	
Greater than 100,000	  	54	  	12.0	  	 	426,051	  	73.2	  	13,470	  	74.4	
 	  	 	  	 	  	 	 	  	 	  	 	  	 	
Total	  	450	  	100.0	  	$	581,887	  	100.0	  	18,116	  	100.0	

(1)	Credit rating may reflect credit rating of parent or guarantor.	
 
19

Piedmont Office Realty Trust, Inc.
Office Leasing Activity
(in thousands)

 
 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended March 31, 2010	 	
 	  	Leased Square
Footage	 	 	Rentable Square
Footage	  	Percent Leased  (1)	 	
 	 	 	 	
As of December 31, 2009	  	18,221	  	 	20,229	  	90.1	% 	
 	 	 	 	
New Leases	  	118	  	 	 	  	 	 	
Expired Leases	  	(223	) 	 	 	  	 	 	
Other	  	 	 	 	1	  	 	 	

As of March 31, 2010 (2)	  	18,116	  	 	20,230	  	89.6	% 	
 	  	 	 	 	 	  	 	 	
Rental Rate Roll Up / Roll Down Associated with New Leasing Activity (3)

 
 	 	 	 	 	 	 	 	 	 	
 	  	Square Feet	 	 	% Change Cash
Rents	 	 	% Change Accrual
Rents	 	
For the three months ended March 31, 2010:	  	 	 	 	 	 	 	 	 	
 	 	 	 	
New, renewal, and expansion leases executed	  	116	  	 	(21.0	%) 	 	(16.8	%) 	
 	 	 	 	
Percentage of Rentable Square Footage	  	0.6	% 	 	 	 	 	 	 	
 
(1)	Calculated as leased square footage on March 31, 2010 plus square footage associated with new leases signed for currently vacant spaces divided by total rentable square footage, expressed as a percentage.	
(2)	The square footage associated with leases with end of period expiration dates is included in the end of the period leased square footage.	
(3)	The population analyzed consists of office leases executed during the quarter (retail leases as well as activity associated with our industrial properties and our unconsolidated joint venture assets were excluded from this analysis). For spaces that had been vacant for less than 1 year, the rents last in effect for the previous lease were compared to the initial rents of the new lease. Spaces that had been vacant for greater than 1 year were excluded from this analysis.	
 
20

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	OFFICE PORTFOLIO	  	GOVERNMENTAL ENTITIES	
 	  	Rentable Square
Footage	  	Percentage of
Rentable Square
Footage (%)	  	Annualized Lease
Revenue (1)	  	Percentage of
Annualized Lease
Revenue (%)	  	Annualized Lease
Revenue (1)	  	Percentage of
Annualized Lease
Revenue (%)	
Vacant	  	2,114	  	10.4	  	$	0	  	0.0	  	$	0	  	0.0	
20102	  	1,169	  	5.8	  	 	32,178	  	5.5	  	 	1,864	  	0.3	
2011	  	2,306	  	11.4	  	 	73,398	  	12.6	  	 	19,157	  	3.3	
2012	  	2,218	  	11.0	  	 	81,204	  	14.0	  	 	36,629	  	6.3	
2013	  	1,877	  	9.3	  	 	66,914	  	11.5	  	 	1,294	  	0.2	
2014	  	1,748	  	8.6	  	 	54,366	  	9.3	  	 	3,601	  	0.6	
2015	  	1,406	  	7.0	  	 	42,123	  	7.2	  	 	0	  	0.0	
2016	  	1,023	  	5.1	  	 	28,601	  	4.9	  	 	1,029	  	0.2	
2017	  	432	  	2.1	  	 	15,590	  	2.7	  	 	1,248	  	0.2	
2018	  	1,455	  	7.2	  	 	43,422	  	7.5	  	 	8,604	  	1.5	
2019	  	1,409	  	7.0	  	 	53,018	  	9.1	  	 	17,913	  	3.1	
2020	  	939	  	4.6	  	 	25,811	  	4.5	  	 	8,955	  	1.5	
2021	  	140	  	0.7	  	 	3,666	  	0.6	  	 	0	  	0.0	
2022	  	317	  	1.5	  	 	7,765	  	1.3	  	 	0	  	0.0	
2023	  	761	  	3.8	  	 	14,897	  	2.6	  	 	0	  	0.0	
Thereafter	  	916	  	4.5	  	 	38,934	  	6.7	  	 	1,323	  	0.2	

Total / Weighted
Average	  	20,230	  	100.0	  	$	581,887	  	100.0	  	$	101,617	  	17.4	

 
(1)	Annualized lease revenue for purposes of this schedule includes the revenue effects of leases executed but not commenced as of March 31, 2010.	
(2)	Includes leases with an expiration date of March 31, 2010 aggregating 20,155 square feet and Annualized Lease Revenue of $555,165 for which no new leases were signed.	
 
21

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	12/31/2010	  	12/31/2011	  	12/31/2012	  	12/31/2013	
 	  	Expiring
Square
Footage	  	Expiring
Lease
Revenue (1)	  	Expiring
Square
Footage	  	Expiring
Lease
Revenue (1)	  	Expiring
Square
Footage	  	Expiring
Lease
Revenue (1)	  	Expiring
Square
Footage	  	Expiring
Lease
Revenue (1)	
Atlanta	  	57	  	$	1,827	  	84	  	$	2,019	  	34	  	$	602	  	46	  	$	1,068	
Austin	  	0	  	 	0	  	0	  	 	0	  	0	  	 	0	  	0	  	 	0	
Boston	  	1	  	 	32	  	235	  	 	9,414	  	7	  	 	332	  	111	  	 	2,090	
Central & South Florida	  	11	  	 	314	  	124	  	 	2,731	  	16	  	 	430	  	55	  	 	1,353	
Chicago	  	141	  	 	5,803	  	407	  	 	13,782	  	42	  	 	1,569	  	851	  	 	32,890	
Cleveland	  	0	  	 	0	  	22	  	 	477	  	112	  	 	1,915	  	14	  	 	332	
Dallas	  	55	  	 	1,185	  	285	  	 	6,094	  	86	  	 	2,240	  	9	  	 	227	
Denver	  	0	  	 	0	  	0	  	 	0	  	0	  	 	0	  	0	  	 	0	
Detroit	  	80	  	 	2,574	  	263	  	 	5,708	  	84	  	 	2,235	  	196	  	 	5,657	
Houston	  	0	  	 	0	  	0	  	 	0	  	0	  	 	0	  	0	  	 	0	
Los Angeles	  	96	  	 	3,813	  	100	  	 	3,613	  	191	  	 	4,048	  	87	  	 	2,952	
Minneapolis	  	8	  	 	300	  	145	  	 	4,610	  	20	  	 	713	  	44	  	 	1,386	
Nashville	  	0	  	 	0	  	0	  	 	0	  	0	  	 	0	  	0	  	 	0	
New York	  	446	  	 	8,231	  	6	  	 	304	  	621	  	 	21,354	  	232	  	 	8,567	
Philadelphia	  	0	  	 	0	  	0	  	 	0	  	0	  	 	0	  	0	  	 	0	
Phoenix	  	91	  	 	1,861	  	45	  	 	790	  	0	  	 	0	  	0	  	 	0	
Portland	  	73	  	 	1,305	  	105	  	 	1,502	  	73	  	 	1,279	  	0	  	 	0	
Seattle	  	87	  	 	2,246	  	69	  	 	1,772	  	0	  	 	0	  	0	  	 	0	
Washington, D.C.	  	23	  	 	2,219	  	416	  	 	22,541	  	932	  	 	44,426	  	232	  	 	10,125	

Total / Weighted Average	  	1,169	  	$	31,710	  	2,306	  	$	75,357	  	2,218	  	$	81,143	  	1,877	  	$	66,647	

(1)	Expiring lease revenue is calculated as expiring square footage multiplied by the rent per square foot of the tenant currently leasing the space.	
 
22

Piedmont Office Realty Trust, Inc.
Capital Expenditures by Type
For the quarter ended March 31, 2010
Unaudited ($ in thousands)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	For the Three Months Ended	
 	  	March 31, 2010	  	December 31, 2009	  	September 30, 2009	  	June 30, 2009	  	March 31, 2009	
Non-incremental (1)	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Bldg / construction / dev	  	 	2,794	  	 	3,344	  	$	852	  	$	1,108	  	$	1,256	
Tenant improvements	  	 	3,591	  	 	10,278	  	 	3,527	  	 	5,233	  	 	3,841	
Leasing costs	  	 	2,737	  	 	6,075	  	 	4,081	  	 	1,193	  	 	6,708	
 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Total non-incremental	  	 	9,122	  	 	19,697	  	 	8,460	  	 	7,534	  	 	11,805	
 	 	 	 	 	 	
Incremental (1)	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
 	 	 	 	 	 	
Bldg / construction / dev	  	 	277	  	 	2,023	  	 	838	  	 	551	  	 	526	
Tenant improvements	  	 	0	  	 	19	  	 	0	  	 	0	  	 	0	
Leasing costs	  	 	0	  	 	0	  	 	0	  	 	0	  	 	0	
 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
Total incremental	  	 	277	  	 	2,042	  	 	838	  	 	551	  	 	526	

Total capital expenditures	  	$	9,399	  	$	21,739	  	$	9,298	  	$	8,085	  	$	12,331	

 	 	 	 	 	
 	  	For the Three
Months  Ended March 31,
2010	 	
Tenant improvement commitments (2)	  	 	 	 	
 	 	
Tenant improvement commitments outstanding at beginning of period	  	$	121,469	  	
New tenant improvement commitments related to leases executed during period	  	 	1,719	  	
Tenant improvement commitments fulfilled or expired	  	 	(4,293	) 	
 	  	 	 	 	
Total	  	$	118,895	  	

NOTE: The information presented on this page is for all consolidated assets, inclusive of our industrial properties.
(1)	Definitions for non-incremental and incremental capital expenditures can be found on pages 28 and 29.	
(2)	Commitments are unexpired contractual tenant improvement obligations for leases executed in current and prior periods that have not yet been fulfilled. The three largest commitments total approximately $72.2 million, or 61% of total outstanding commitments.	
 
23

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	For the Three
Months  Ended
March 31, 2010	  	2009	  	2008	  	2007	
 	 	 	 	 	
Renewal Leases	  	 	 	  	 	 	  	 	 	  	 	 	
Number of leases	  	 	6	  	 	34	  	 	34	  	 	39	
Square feet	  	 	86,729	  	 	1,568,895	  	 	967,959	  	 	1,672,383	
Tenant improvements per square foot	  	$	7.22	  	$	12.01	  	$	8.28	  	$	13.19	
Leasing commissions per square foot	  	$	4.78	  	$	5.51	  	$	7.17	  	$	7.18	
 	  	 	 	  	 	 	  	 	 	  	 	 	
Total per square foot	  	$	12.00	  	$	17.52	  	$	15.45	  	$	20.37	
 	 	 	 	 	
Tenant improvements per square foot per year of lease term	  	$	0.94	  	$	1.44	  	$	1.39	  	$	1.85	
Leasing commissions per square foot per year of lease term	  	$	0.62	  	$	0.66	  	$	1.20	  	$	1.01	
 	  	 	 	  	 	 	  	 	 	  	 	 	
Total per square foot per year of lease term	  	$	1.56	  	$	2.10	  	$	2.59	  	$	2.86	
 	 	 	 	 	
New Leases	  	 	 	  	 	 	  	 	 	  	 	 	
Number of leases	  	 	4	  	 	28	  	 	37	  	 	44	
Square feet	  	 	93,739	  	 	700,295	  	 	747,919	  	 	508,605	
Tenant improvements per square foot	  	$	11.66	  	$	45.04	  	$	30.59	  	$	24.93	
Leasing commissions per square foot	  	$	8.36	  	$	17.12	  	$	15.95	  	$	10.39	
 	  	 	 	  	 	 	  	 	 	  	 	 	
Total per square foot	  	$	20.02	  	$	62.16	  	$	46.54	  	$	35.32	
 	 	 	 	 	
Tenant improvements per square foot per year of lease term	  	$	1.38	  	$	4.05	  	$	3.24	  	$	3.29	
Leasing commissions per square foot per year of lease term	  	$	0.99	  	$	1.54	  	$	1.69	  	$	1.37	
 	  	 	 	  	 	 	  	 	 	  	 	 	
Total per square foot per year of lease term	  	$	2.37	  	$	5.59	  	$	4.93	  	$	4.66	
 	 	 	 	 	
Total	  	 	 	  	 	 	  	 	 	  	 	 	
Number of leases	  	 	10	  	 	62	  	 	71	  	 	83	
Square feet	  	 	180,468	  	 	2,269,190	  	 	1,715,878	  	 	2,180,988	
Tenant improvements per square foot	  	$	9.53	  	$	22.21	  	$	18.01	  	$	15.93	
Leasing commissions per square foot	  	$	6.64	  	$	9.09	  	$	11.00	  	$	7.93	
 	  	 	 	  	 	 	  	 	 	  	 	 	
Total per square foot	  	$	16.17	  	$	31.30	  	$	29.01	  	$	23.86	
 	 	 	 	 	
Tenant improvements per square foot per year of lease term	  	$	1.18	  	$	2.42	  	$	2.41	  	$	2.21	
Leasing commissions per square foot per year of lease term	  	$	0.82	  	$	0.99	  	$	1.47	  	$	1.10	
 	  	 	 	  	 	 	  	 	 	  	 	 	
Total per square foot per year of lease term	  	$	2.00	  	$	3.41	  	$	3.88	  	$	3.31	
NOTE: This information is presented for our consolidated office assets only.
 
24

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Location	  	Number of
Properties	  	Rentable Square
Footage  (in
Thousands)	  	Percentage of
Rentable  Square
Footage (%)	  	Occupied
Square Feet	  	Percent Leased
(%)	  	Annualized Lease
Revenue ($'s in
thousands)	  	Percentage of
Annualized  Lease
Revenue (%)	
 	 	 	 	 	 	 	 	
Chicago	  	6	  	4,884	  	24.1	  	4,286	  	87.8	  	$	153,283	  	26.3	
Washington, D.C.	  	14	  	3,045	  	15.1	  	2,590	  	85.1	  	 	115,648	  	19.9	
New York	  	9	  	3,288	  	16.3	  	3,078	  	93.6	  	 	94,493	  	16.2	
Minneapolis	  	2	  	1,227	  	6.1	  	1,211	  	98.7	  	 	37,240	  	6.4	
Los Angeles	  	5	  	1,133	  	5.6	  	981	  	86.6	  	 	34,638	  	6.0	
Dallas	  	7	  	1,275	  	6.3	  	1,117	  	87.6	  	 	25,624	  	4.4	
Boston	  	4	  	583	  	2.9	  	540	  	92.6	  	 	23,290	  	4.0	
Detroit	  	4	  	929	  	4.6	  	757	  	81.5	  	 	20,210	  	3.5	
Philadelphia	  	1	  	761	  	3.8	  	761	  	100.0	  	 	14,897	  	2.6	
Atlanta	  	3	  	607	  	3.0	  	469	  	77.3	  	 	11,844	  	2.0	
Houston	  	1	  	313	  	1.5	  	313	  	100.0	  	 	9,562	  	1.6	
Phoenix	  	4	  	557	  	2.8	  	434	  	77.9	  	 	7,647	  	1.3	
Nashville	  	1	  	312	  	1.5	  	312	  	100.0	  	 	6,975	  	1.2	
Central & South Florida	  	3	  	297	  	1.4	  	260	  	87.5	  	 	5,872	  	1.0	
Austin	  	1	  	195	  	0.9	  	195	  	100.0	  	 	5,668	  	1.0	
Portland	  	4	  	325	  	1.6	  	325	  	100.0	  	 	5,109	  	0.9	
Seattle	  	1	  	156	  	0.8	  	156	  	100.0	  	 	4,017	  	0.7	
Cleveland	  	2	  	187	  	0.9	  	175	  	93.6	  	 	3,333	  	0.6	
Denver	  	1	  	156	  	0.8	  	156	  	100.0	  	 	2,537	  	0.4	

Total / Weighted Average	  	73	  	20,230	  	100.0	  	18,116	  	89.6	  	$	581,887	  	100.0	

 
25

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Industry Diversification	  	Number of
Tenants	  	Percentage of
Total  Tenants
(%)	  	Annualized Lease
Revenue ($’s in
thousands)	  	Percentage of
Annualized  Lease
Revenue (%)	  	Leased Square
Footage  (in
thousands)	  	Percentage of
Leased  Square
Footage (%)	
 	 	 	 	 	 	 	
Governmental Entity	  	20	  	4.9	  	$	101,616	  	17.5	  	2,443	  	13.5	
Business Services	  	59	  	14.4	  	 	69,993	  	12.0	  	2,174	  	12.0	
Depository Institutions	  	16	  	3.9	  	 	55,829	  	9.6	  	1,856	  	10.2	
Legal Services	  	10	  	2.4	  	 	39,230	  	6.7	  	1,055	  	5.8	
Insurance Carriers	  	19	  	4.6	  	 	35,912	  	6.2	  	1,458	  	8.0	
Petroleum Refining & Related Industries	  	1	  	0.2	  	 	32,184	  	5.5	  	784	  	4.3	
Chemicals & Allied Products	  	8	  	1.9	  	 	24,753	  	4.3	  	741	  	4.1	
Nondepository Credit Institutions	  	10	  	2.4	  	 	21,494	  	3.7	  	827	  	4.6	
Food & Kindred Products	  	3	  	0.7	  	 	19,436	  	3.3	  	509	  	2.8	
Engineering, Accounting, Research, Management & Related Services	  	24	  	5.8	  	 	18,969	  	3.3	  	545	  	3.0	
Communications	  	35	  	8.5	  	 	17,332	  	3.0	  	607	  	3.4	
Security & Commodity Brokers, Dealers, Exchanges & Services	  	18	  	4.4	  	 	14,871	  	2.6	  	530	  	2.9	
Electronic & Other Electrical Equipment & Components, Except Computer	  	8	  	2.0	  	 	13,537	  	2.3	  	600	  	3.3	
Educational Services	  	9	  	2.2	  	 	12,060	  	2.1	  	285	  	1.6	
Insurance Agents, Brokers & Services	  	6	  	1.5	  	 	10,112	  	1.7	  	412	  	2.3	
Other	  	165	  	40.2	  	 	94,559	  	16.2	  	3,290	  	18.2	
 	  	 	  	 	  	 	 	  	 	  	 	  	 	
Total	  	411	  	100.0	  	$	581,887	  	100.0	  	18,116	  	100.0	

 
26

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INDUSTRIAL PROPERTIES	  	Location	  	Percent
Ownership (%)	  	Year Built	  	Real Estate
Net  Book
Value ($’s in
thousands)	  	Rentable Square
Footage (in
thousands)	  	Percent
Leased (%)	
112 Hidden Lake Circle	  	Duncan, SC	  	100	  	1987	  	$	9,265	  	313.4	  	100.0	
110 Hidden Lake Circle	  	Duncan, SC	  	100	  	1987	  	 	13,379	  	473.4	  	36.8	
 	  	 	  	 	  	 	  	 	 	  	 	  	 	
 	  	 	  	 	  	 	  	$	22,644	  	786.8	  	61.9	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
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 (%)	
14400 Hertz Quail Springs Parkway	  	Oklahoma City, OK	  	4	  	1997	  	$	152	  	$	4,123	  	57.2	  	100.0	
360 Interlocken	  	Broomfield, CO	  	4	  	1996	  	 	240	  	 	6,506	  	51.7	  	27.9	
47300 Kato Road	  	Fremont, CA	  	78	  	1982	  	 	2,693	  	 	3,475	  	58.4	  	100.0	
20/20 Building	  	Leawood, KS	  	57	  	1992	  	 	2,720	  	 	4,791	  	68.2	  	90.8	
4685 Investment Drive	  	Troy, MI	  	55	  	2000	  	 	5,325	  	 	9,680	  	77.1	  	100.0	
5301 Maryland Way	  	Brentwood, TN	  	55	  	1989	  	 	11,294	  	 	20,530	  	201.2	  	100.0	
8560 Upland Drive	  	Parker, CO	  	72	  	2001	  	 	7,836	  	 	10,900	  	148.2	  	100.0	
Two Park Center	  	Hoffman Estates, IL	  	72	  	1999	  	 	11,941	  	 	16,610	  	193.7	  	83.0	
 	  	 	  	 	  	 	  	 	 	  	 	 	  	 	  	 	
 	  	 	  	 	  	 	  	$	42,201	  	$	76,615	  	855.7	  	91.1	

 	 	 	 	 	
LAND PARCELS	  	Location	  	Acres	
Portland Land Parcels	  	Beaverton, OR	  	18.2	
Enclave Parkway	  	Houston, TX	  	4.5	
Durham Avenue	  	South Plainfield, NJ	  	8.9	
Corporate Court	  	Holtsville, NY	  	10.0	
State Highway 161	  	Irving, TX	  	4.5	
Sylvan Avenue	  	Englewood Cliffs, NJ	  	2.4	
 	  	 	  	 	
 	  	 	  	48.5	

 	 	 	 	 	 	
STRUCTURED FINANCE	  	            Location             	  	Book Value
($’s  in
thousands)	
Mezzanine Loan (1)	  	Chicago, IL	  	$	47,788	
Mezzanine Loan (1)	  	Chicago, IL	  	 	11,619	
 	  	 	  	 	 	
 	  	 	  	$	59,407	

(1)	Secured by a pledge of the equity interest of the entity owning a 46-story, Class A commercial office building located in downtown Chicago.	
 
27

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 package and reasons why management believes that these measures provide useful information to investors about the Company’s financial condition and results of operations. Reconciliations of these non-GAAP measures are presented on pages 31-33.
Adjusted Funds From Operations (“AFFO”): AFFO is calculated by deducting from Core FFO non-incremental capital expenditures and adding back non-cash items including non-real estate depreciation, straight lined rents and fair value lease revenue, non-cash components of interest expense and compensation expense, and by making similar adjustments for unconsolidated partnerships and joint ventures. Although AFFO may not be comparable to that of other REITs, we believe it provides a meaningful indicator of our ability to fund cash needs and to make cash distributions to equity owners. AFFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating performance to net income, as an alternative to net cash flows from operating activities or as a measure of our liquidity.
Annualized Lease Revenue (“ALR”): ALR is calculated by multiplying (i) rental payments (defined as base rent plus operating expenses, if payable by the tenant on a monthly basis under the terms of a lease that have been executed, but excluding rental abatements and rental payments related to executed but not commenced leases for space that was covered by an existing lease), by (ii) 12. In instances in which contractual rents and operating expenses 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) monthly base rental payments 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 adding back any impairment losses and 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 liquidity. 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 adjust for certain non-recurring items such as impairment losses and other extraordinary items. Such items create significant earnings volatility. We believe Core FFO provides a meaningful measure of our operating performance and more predictability regarding future earnings potential. Core FFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating performance to net income; therefore, it should not be compared to other REITs’ equivalent to Core FFO.
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. 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.
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, plus depreciation and amortization on real estate assets, and after the same adjustments for unconsolidated partnerships and joint ventures. Such factors can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates. FFO may provide valuable comparisons of operating performance between periods and with other REITs. FFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating performance to net income. We believe that FFO is a beneficial indicator of the performance of an equity REIT. However, other REITs may not define FFO in accordance with the NAREIT definition, or may interpret the current NAREIT definition differently than we do; therefore, our computation of FFO may not be comparable to that of such other REITs.
Incremental Capital Expenditures: Incremental Capital Expenditures are defined as capital expenditures of a non-recurring nature that incrementally enhance the underlying assets’ income generating capacity. Tenant improvements, leasing commissions, building capital and deferred lease incentives incurred to lease space that was dark at acquisition, improvements associated with the expansion of a building and renovations that change the underlying classification of a building are included in this measure.
 
28

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 interest in eight properties owned through unconsolidated partnerships. We present this measure on a cash basis which eliminates the effects of straight lined rents and fair value lease revenue. NOI from Unconsolidated Joint Ventures is a non-GAAP measure and therefore may not be comparable to similarly defined data provided by other REITs.
Non-Incremental Capital Expenditures: Non-Incremental Capital Expenditures are defined as capital expenditures of a recurring nature related to tenant improvements and leasing commissions that do not incrementally enhance the underlying assets’ income generating capacity. We exclude first generation tenant improvements and leasing commissions from this measure.
Same Store NOI: Same Store NOI is calculated as the Core NOI attributable to the properties owned or placed in service during the entire span of the current and prior year reporting periods. Same Store NOI excludes amounts attributable to industrial properties. We present this measure on a cash basis which eliminates the effects of straight lined rents and fair value lease revenue. We believe Same Store NOI is an important measure of comparison of our stabilized properties’ operating performance. Other REITs may calculate Same Store NOI differently and our calculation should not be compared to that of other REITs.
Same Store Properties: Same Store Properties is defined as properties owned or placed in service during the entire span of the current and prior two years of reporting periods. Same Store Properties excludes industrial properties. We believe Same Store Properties is an important measure of comparison of our stabilized portfolio performance.
 
29

Piedmont Office Realty Trust, Inc.
Research Coverage

 
 	 	 	 	 	
Paul E. Adornato, CFA	  	Brendon Maiorana	  	 	
BMO Capital Markets	  	Wells Fargo	  	 	
3 Time Square	  	7 St. Paul Street	  	 	
New York, New York 10036	  	MAC R1230-011	  	 	
Phone: (212) 885-4170	  	Baltimore, MD 21202	  	 	
 	  	Phone: (443) 263-6516	  	 	
 	 	 	
Anthony Paolone, CFA	  	David B. Rodgers, CFA	  	 	
JP Morgan	  	RBC Capital Markets	  	 	
277 Park Avenue	  	Chagrin Highlands Center	  	 	
New York, NY 10172	  	2000 Auburn Drive, Suite 200	  	 	
Phone: (212) 622-6682	  	Beachwood, OH 44122	  	 	
 	  	Phone: (440) 715-2647	  	 	
 
30

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	
 	  	3/31/2010	 	 	12/31/2009	 	 	9/30/2009	 	 	6/30/2009	 	 	3/31/2009	 	
 	 	 	 	 	 	
Net income attributable to Piedmont	  	$	31,460	  	 	$	25,946	  	 	$	(8,260	) 	 	$	27,976	  	 	$	29,038	  	
Add:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Non-controlling interest	  	 	125	  	 	 	119	  	 	 	121	  	 	 	120	  	 	 	118	  	
Interest expense	  	 	19,091	  	 	 	19,489	  	 	 	19,518	  	 	 	19,393	  	 	 	19,343	  	
Depreciation	  	 	26,428	  	 	 	27,434	  	 	 	27,159	  	 	 	26,928	  	 	 	25,989	  	
Amortization	  	 	11,488	  	 	 	16,273	  	 	 	14,095	  	 	 	13,797	  	 	 	13,543	  	
Impairment loss on real estate assets	  	 	—  	  	 	 	—  	  	 	 	37,633	  	 	 	—  	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core EBITDA	  	 	88,592	  	 	 	89,261	  	 	 	90,266	  	 	 	88,214	  	 	 	88,031	  	
Add:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
General & administrative expenses	  	 	6,695	  	 	 	6,296	  	 	 	5,757	  	 	 	8,102	  	 	 	7,407	  	
Deduct:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest and other income	  	 	(969	) 	 	 	(652	) 	 	 	(1,989	) 	 	 	(1,147	) 	 	 	(662	) 	
Lease termination income	  	 	(496	) 	 	 	(1,982	) 	 	 	—  	  	 	 	(782	) 	 	 	—  	  	
Lease termination expense—straight line rent & FAS 141 writeoffs	  	 	67	  	 	 	552	  	 	 	627	  	 	 	174	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core net operating income (accrual basis)	  	 	93,889	  	 	 	93,475	  	 	 	94,661	  	 	 	94,561	  	 	 	94,776	  	
Deduct:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Straight line rent adjustment	  	 	1,006	  	 	 	(2,619	) 	 	 	(1,508	) 	 	 	(1,378	) 	 	 	2,696	  	
FAS 141 adjustment	  	 	(1,426	) 	 	 	(1,212	) 	 	 	(1,249	) 	 	 	(1,247	) 	 	 	(1,230	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core net operating income (cash basis)	  	 	93,469	  	 	 	89,644	  	 	 	91,904	  	 	 	91,936	  	 	 	96,242	  	
Deduct:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Acquisitions	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
Industrial Properties	  	 	(273	) 	 	 	(638	) 	 	 	(638	) 	 	 	(642	) 	 	 	(641	) 	
Unconsolidated joint ventures	  	 	(1,267	) 	 	 	(1,156	) 	 	 	(1,171	) 	 	 	(1,275	) 	 	 	(1,196	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Same Store NOI	  	$	91,929	  	 	$	87,850	  	 	$	90,095	  	 	$	90,019	  	 	$	94,405	  	

31

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	
 	  	3/31/10	 	 	12/31/2009	 	 	9/30/2009	 	 	6/30/2009	 	 	3/31/2009	 	
 	 	 	 	 	 	
Rental income	  	$	112,106	  	 	$	112,000	  	 	$	112,874	  	 	$	111,994	  	 	$	112,946	  	
Tenant reimbursements	  	 	35,081	  	 	 	36,108	  	 	 	36,924	  	 	 	36,059	  	 	 	40,105	  	
Property mgmt fees	  	 	753	  	 	 	928	  	 	 	742	  	 	 	744	  	 	 	697	  	
Other rental income	  	 	496	  	 	 	1,981	  	 	 	0	  	 	 	782	  	 	 	0	  	
Gain on sale	  	 	0	  	 	 	0	  	 	 	0	  	 	 	0	  	 	 	0	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	148,436	  	 	 	151,017	  	 	 	150,540	  	 	 	149,579	  	 	 	153,748	  	
 	 	 	 	 	 	
Property operating expense	  	 	55,369	  	 	 	57,301	  	 	 	57,618	  	 	 	55,639	  	 	 	60,131	  	
Depreciation	  	 	26,080	  	 	 	27,090	  	 	 	26,792	  	 	 	26,561	  	 	 	25,630	  	
Amortization	  	 	11,387	  	 	 	16,171	  	 	 	13,991	  	 	 	13,695	  	 	 	13,442	  	
Casualty & impairment loss	  	 	0	  	 	 	0	  	 	 	35,063	  	 	 	0	  	 	 	0	  	
General & administrative expense	  	 	6,630	  	 	 	6,226	  	 	 	5,701	  	 	 	8,095	  	 	 	7,371	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses	  	 	99,466	  	 	 	106,788	  	 	 	139,165	  	 	 	103,990	  	 	 	106,574	  	
 	 	 	 	 	 	
Real estate operating income	  	 	48,970	  	 	 	44,229	  	 	 	11,375	  	 	 	45,589	  	 	 	47,174	  	
 	 	 	 	 	 	
Interest expense	  	 	(19,091	) 	 	 	(19,489	) 	 	 	(19,518	) 	 	 	(19,393	) 	 	 	(19,343	) 	
Interest and other income	  	 	969	  	 	 	652	  	 	 	1,989	  	 	 	1,147	  	 	 	662	  	
Equity in income of unconsolidated JVs	  	 	737	  	 	 	673	  	 	 	(1,985	) 	 	 	753	  	 	 	663	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total other income/(expense)	  	 	(17,385	) 	 	 	(18,164	) 	 	 	(19,514	) 	 	 	(17,493	) 	 	 	(18,018	) 	

Net income/ (loss)	  	 	31,585	  	 	 	26,065	  	 	 	(8,139	) 	 	 	28,096	  	 	 	29,156	  	
 	 	 	 	 	 	
Less: net income from non-controlling interest	  	 	(125	) 	 	 	(119	) 	 	 	(121	) 	 	 	(120	) 	 	 	(118	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NET INCOME/ (LOSS) ATTRIBUTABLE TO PIEDMONT	  	$	31,460	  	 	$	25,946	  	 	($	8,260	) 	 	$	27,976	  	 	$	29,038	  	

Add Back:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation	  	 	26,250	  	 	 	27,264	  	 	 	27,004	  	 	 	26,773	  	 	 	25,837	  	
Amortization	  	 	11,488	  	 	 	16,274	  	 	 	14,094	  	 	 	13,797	  	 	 	13,543	  	
 	 	 	 	 	 	
Deduct:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gain / (loss) on sale of property	  	 	0	  	 	 	0	  	 	 	0	  	 	 	0	  	 	 	0	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
FUNDS FROM OPERATIONS (FFO)	  	$	69,198	  	 	$	69,484	  	 	$	32,838	  	 	$	68,546	  	 	$	68,418	  	

Add Back:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Casualty & impairment loss	  	 	0	  	 	 	0	  	 	 	37,633	  	 	 	0	  	 	 	0	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
CORE FUNDS FROM OPERATIONS	  	$	69,198	  	 	$	69,484	  	 	$	70,471	  	 	$	68,546	  	 	$	68,418	  	

Add Back:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation of non real estate assets	  	 	178	  	 	 	171	  	 	 	155	  	 	 	154	  	 	 	152	  	
Straight-line effects of lease revenue	  	 	1,073	  	 	 	(1,619	) 	 	 	(846	) 	 	 	(1,228	) 	 	 	2,696	  	
Amortization of lease related intangibles	  	 	(1,426	) 	 	 	(1,663	) 	 	 	(1,283	) 	 	 	(1,223	) 	 	 	(1,230	) 	
Stock-based and other non-cash compensation expense	  	 	653	  	 	 	671	  	 	 	671	  	 	 	831	  	 	 	1,005	  	
Deferred financing cost amortization	  	 	696	  	 	 	696	  	 	 	696	  	 	 	686	  	 	 	708	  	
Income from amortization of discount on purchase of mezzanine loans	  	 	(668	) 	 	 	(334	) 	 	 	(648	) 	 	 	(929	) 	 	 	(367	) 	
 	 	 	 	 	 	
Deduct:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Non-incremental capital expenditures	  	 	(9,122	) 	 	 	(19,697	) 	 	 	(8,460	) 	 	 	(7,534	) 	 	 	(11,805	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
ADJUSTED FUNDS FROM OPERATIONS	  	$	60,582	  	 	$	47,709	  	 	$	60,756	  	 	$	59,303	  	 	$	59,577	  	

32

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	
 	  	3/31/2010	 	 	12/31/2009	 	 	9/30/2009	 	 	6/30/2009	 	 	3/31/2009	 	
 	 	 	 	 	 	
Equity in Income of Unconsolidated JVs	  	$	737	  	 	$	673	  	 	$	(1,985	) 	 	$	753	  	 	$	663	  	
 	 	 	 	 	 	
Add:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest expense	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation	  	 	348	  	 	 	344	  	 	 	367	  	 	 	367	  	 	 	359	  	
Amortization	  	 	101	  	 	 	102	  	 	 	104	  	 	 	102	  	 	 	101	  	
Impairment Charge	  	 	—  	  	 	 	—  	  	 	 	2,570	  	 	 	—  	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core EBITDA	  	 	1,186	  	 	 	1,119	  	 	 	1,056	  	 	 	1,222	  	 	 	1,123	  	
 	 	 	 	 	 	
Add:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
General & administrative expenses	  	 	65	  	 	 	70	  	 	 	56	  	 	 	7	  	 	 	36	  	
 	 	 	 	 	 	
Deduct:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest and other income	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core net operating income (accrual basis)	  	 	1,251	  	 	 	1,189	  	 	 	1,112	  	 	 	1,229	  	 	 	1,159	  	
Straight line rent adjustment	  	 	17	  	 	 	(32	) 	 	 	60	  	 	 	47	  	 	 	38	  	
FAS 141 adjustment	  	 	(1	) 	 	 	(1	) 	 	 	(1	) 	 	 	(1	) 	 	 	(1	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core net operating income (cash basis)	  	$	1,267	  	 	$	1,156	  	 	$	1,171	  	 	$	1,275	  	 	$	1,196	  	

33

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 the Company’s actual results and its expectations to differ materially from those described in the Company’s forward-looking statements: the Company’s ability to successfully identify and consummate suitable acquisitions; current adverse market and economic conditions; lease terminations or lease defaults, particularly by one of the Company’s large lead tenants; the impact of competition on the Company’s efforts to renew existing leases or re-let space; changes in the economies and other conditions of the office market in general and of the specific markets in which the Company operates; economic and regulatory changes; additional risks and costs associated with directly managing properties occupied by government tenants; adverse market and economic conditions and related impairments to the Company's real estate assets and other intangible assets; the success of the Company’s real estate strategies and investment objectives; availability of financing; costs of complying with governmental laws and regulations; uncertainties associated with environmental and other regulatory matters; the Company’s ability to continue to qualify as a REIT under the Internal Revenue Code; and other factors detailed in our most recent Annual Report on Form 10-K and other documents we file with the Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this supplemental report. We cannot guarantee the accuracy of any such forward-looking statements contained in this supplemental report, and we do not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
 
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