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) October 31, 2012

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

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

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

 

Item 2.02 Results of Operations and Financial Condition
On October 31, 2012, Piedmont Office Realty Trust, Inc. (the “Registrant”) issued a press release announcing its financial results for the third quarter 2012 and published supplemental information for the third quarter 2012 to its website. The press release and the supplemental information are attached hereto as Exhibit 99.1 and 99.2, respectively, and are incorporated herein by reference. Pursuant to the rules and regulations of the Securities and Exchange Commission, such exhibits and the information set forth therein are deemed to have been furnished and shall not be deemed to be “filed” under the Securities Exchange Act of 1934.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits:

Exhibit No.	  	Description	
 	 	
99.1	  	Press release dated October 31, 2012.	
 	 	
99.2	  	Piedmont Office Realty Trust, Inc. Quarterly Supplemental Information for the Third Quarter 2012.	

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: October 31, 2012

EXHIBIT INDEX

Exhibit No.	  	Description	
 	 	
99.1	  	Press release dated October 31, 2012.	
 	 	
99.2	  	Piedmont Office Realty Trust, Inc. Quarterly Supplemental Information for the Third Quarter 2012.	

Exhibit 99.1
Piedmont Office Realty Trust Reports Third Quarter Results
ATLANTA, October 31, 2012—Piedmont Office Realty Trust, Inc. (“Piedmont” or the “Company”) (NYSE:PDM), an owner of Class A commercial office properties located predominantly in the ten largest U.S. office markets, today announced its results for the quarter ended September 30, 2012.
Highlights for the Three Months Ended September 30, 2012:
 
 	•	 	Achieved Core Funds From Operations (“CFFO”) of $0.37 for the quarter;	
 
 	•	 	Current quarter’s $0.33 Funds From Operations (“FFO”) includes $7.5 million, or $0.04 per diluted share, impact of accrued potential litigation settlement;	
 
 	•	 	Completed over 1 million square feet of total leasing during the quarter including two significant leases in the Chicago market;	
 
 	•	 	Continued to advance its portfolio refinement strategy by selling its last two industrial properties;	
 
 	•	 	Replaced an expiring $500 million line of credit with a new, comparable facility that matures in 2016;	
 
 	•	 	Repurchased approximately 2.2 million shares of its common stock at an average price of $16.95 per share pursuant to the Company’s previously announced stock repurchase program.	
Donald A. Miller, CFA, President and Chief Executive Officer stated, “This quarter was significant in that it marked the beginning of the upturn in our occupancy metrics that we indicated would happen in the second half of 2012. We delivered solid financial results and achieved significant leasing activity during the third quarter, including the execution of major leases that we have been working on for the past several quarters. This activity translates into positive momentum for Piedmont and is evidence that we have worked through the majority of the leasing exposure related to the large multi-year lease expiration period that we have been experiencing the last few years.”
Results for the Quarter ended September 30, 2012
Piedmont’s net income available to common stockholders for the third quarter of 2012 was $10.8 million or $0.06 per diluted share, as compared with $51.0 million, or $0.29 per diluted share, for the third quarter of 2011. The current quarter’s results reflect $7.5 million, or approximately $0.04 per diluted share, of litigation settlement expense to record the recent proposed settlement of our two class action lawsuits. The prior year’s results also included $30.5 million, or $0.17 per diluted share, related to the operations and gains on sale of three assets sold during the quarter ended September 30, 2011. FFO was $55.2 million, or $0.33 per diluted share, for the quarter ended September 30, 2012 as compared to $68.9 million, or $0.40 per diluted share, for the quarter ended September 30, 2011, reflecting the $0.04 per diluted share charge related to the potential litigation settlement and the $0.03 per diluted share per quarter decrease in FFO contribution as a result of the sale of 35 W. Wacker during the fourth quarter of 2011. Core FFO (after adding back the charge related to the potential litigation settlement mentioned above) was $62.7 million, or $0.37 per diluted share.
Adjusted FFO (“AFFO”) for the third quarter of 2012 totaled $20.4 million, or $0.12 per diluted share, as compared to $51.0 million, or $0.29 per diluted share, in the third quarter of 2011, reflecting the decreases noted above and an approximately $24.1 million increase in non-incremental capital expenditures associated with tenant build outs for new leases, particularly at Aon Center in Chicago.
Total revenues for the quarter ended September 30, 2012 were $134.9 million, as compared with $132.5 million for the same period a year ago, reflecting additional rental revenues from properties acquired during the last twelve months as well as an increase in occupancy as certain large leases commenced during the second and third quarters of 2012.
Property operating costs were $51.7 million in the third quarter of 2012 compared to $50.7 million in the third quarter of 2011, reflecting added operating costs from the acquisition of three properties over the last twelve months, as well as an increase in occupancy as certain large leases commenced during the second and third quarters of 2012. General and administrative expense was $5.5 million for the quarter ended September 30, 2012 as compared to $4.7 million for the same quarter a year ago. The current quarter’s other expense was largely consistent with the quarter ended September 30, 2011 except for the expense related to the potential litigation settlement noted above.
Leasing Update
During the third quarter of 2012, the Company executed over 1 million total square feet of leasing throughout its portfolio. Of the leases signed during the quarter, substantially all were new leases, including two new leases in the Chicago market which were each greater than 300,000 square feet. The same store stabilized portfolio was 90.0% leased as of September 30, 2012 as compared to 87.9% leased a year earlier, primarily reflecting positive net absorption associated with several recent large lease transactions for previously vacant space. The Company’s overall office portfolio, including value add properties, was 87.0% leased as of September 30, 2012, with a weighted average lease term remaining of 7.0 years. Details outlining Piedmont’s upcoming lease expirations and the status of current leasing activity can be found in the Company’s quarterly supplemental information package.

Capital Markets, Financing and Other Activities
As previously announced, during the third quarter Piedmont completed the dispositions of 110 and 112 Hidden Lake Circle, in Duncan, SC for $25.6 million, exclusive of closing costs. The dispositions further the Company’s portfolio refinement strategy in that 110 and 112 Hidden Lake were the Company’s last two industrial assets, as well as its last two properties in the South Carolina market.
Additionally, Piedmont completed the replacement of its $500 million unsecured line of credit which would have matured in August 2012. The new facility matures in 2016; however, under the terms of the agreement, Piedmont may avail itself of two six-month extension options. 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 a spread (currently 117.5 bps) over the selected rate based on Piedmont’s current (BBB) credit rating.
Believing that its common stock is trading at a discount to current net asset value, the Company also repurchased approximately 2.2 million shares of its common stock during the quarter at an average price of $16.95 per share pursuant to its stock repurchase plan announced during the fourth quarter of 2011. Under the $300 million, Board-approved share repurchase program, the Company has purchased approximately 5 million shares since December 2011.
Piedmont’s gross assets amounted to $5.2 billion as of September 30, 2012. Total debt was approximately $1.4 billion as of September 30, 2012 as compared to $1.5 billion as of December 31, 2011, reflecting the payoff of two secured notes during the year. The Company’s total debt-to-gross assets ratio as of September 30, 2012 remained consistent with year end 2011 at 27.5%. As of September 30, 2012, Piedmont had cash and capacity on its unsecured line of credit of approximately $352.8 million.
Dividend
On October 30, 2012, the Board of Directors of Piedmont declared a dividend for the fourth quarter of 2012 in the amount of $0.20 per common share outstanding to stockholders of record as of the close of business on November 30, 2012. Such dividends are to be paid on December 21, 2012.
Guidance for 2012
Based on management’s expectations, the Company revised its financial guidance for full-year 2012 to the upper end of the previously announced range. The revised guidance is as follows:

 	 	Low	 	 	 	 	High	 	
 	 	 	 	
Core FFO	 	$	240	 	 	-  	 	$	250	 Million 	
 	 	 	 	
Core FFO per diluted share	 	$	1.40	  	 	-  	 	$	1.45	  	
These estimates reflect the $0.13 FFO reduction related to the disposition in December 2011 of the 100% leased 35 W. Wacker building in Chicago and management’s view of current market conditions and certain economic and operational assumptions and projections. Actual results could differ from these estimates. Note that individual quarters may fluctuate on both a cash basis and an accrual basis due to the timing of lease commencements and expirations, repairs and maintenance, capital expenditures, capital markets activities and one-time revenue or expense events. In addition, the Company’s guidance is based on information available to management as of the date of this release.
Non-GAAP Financial Measures
This release contains certain supplemental non-GAAP financial measures such as FFO, AFFO, Core FFO, Same store net operating income, and Core EBITDA. See below for definitions and reconciliations of these metrics to their most comparable GAAP metric.
Conference Call Information
Piedmont has scheduled a conference call and an audio web cast for Thursday, November 1, 2012 at 10:00 A.M. Eastern Daylight Time. The live audio web cast of the call may be accessed on the Company’s website at www.piedmontreit.com in the Investor Relations section. Dial-in numbers are 1-877-941-8418 for participants in the United States and 1-480-629-9809 for international participants. The conference identification number is 4573746. A replay of the conference call will be available until November 15, 2012, and can be accessed by dialing 1-877-870-5176 or 1-858-384-5517 for international participants, followed by pass code 4573746. A web cast replay will also be available after the conference call in the Investor Relations section of the Company’s website. During the audio web cast and conference call, the Company’s management team will review third quarter 2012 performance, discuss recent events, and conduct a question-and-answer period.

Supplemental Information
Quarterly Supplemental Information as of and for the period ended September 30, 2012 can be accessed on the Company’s website under the Investor Relations section at www.piedmontreit.com.
About Piedmont Office Realty Trust
Piedmont Office Realty Trust, Inc. (NYSE:PDM) is a fully-integrated and self-managed real estate investment trust (REIT) specializing in high-quality, Class A office properties located primarily in the ten largest U.S. office markets, including Chicago, Washington, D.C., New York, Dallas, Los Angeles and Boston. As of September 30, 2012, Piedmont’s 74 wholly-owned office buildings were comprised of over 20 million rentable square feet. The Company is headquartered in Atlanta, GA with local management offices in each of its major markets. Investment-grade rated by Standard & Poor’s and Moody’s, Piedmont has maintained a low-leverage strategy while transacting $5.9 billion and $1.7 billion in property acquisitions and dispositions, respectively, during its fourteen year operating history. For more information, see www.piedmontreit.com.
Forward Looking Statements
Certain statements contained in this press release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company intends for all such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, as applicable. Such information is subject to certain risks and uncertainties, as well as known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of the Company’s performance in future periods. Such forward-looking statements can generally be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “continue” or similar words or phrases that are predictions of future events or trends and which do not relate solely to historical matters. Examples of such statements in this press release include whether the Company’s occupancy metrics will continue to improve in future quarters; those related to the consummation of a litigation settlement; whether the Company’s stock is trading at a discount to NAV; and the Company’s estimated range of Core FFO and Core FFO per diluted share for the year ending December 31, 2012.
The following are some of the factors that could cause the Company’s actual results and its expectations to differ materially from those described in the Company’s forward-looking statements: the Company’s ability to successfully identify and consummate suitable acquisitions; the demand for office space, rental rates and property values may continue to lag the general economic recovery; lease terminations or lease defaults, particularly by one of the Company’s large lead tenants; the impact of competition on the Company’s efforts to renew existing leases or re-let space; changes in the economies and other conditions of the office market in general and of the specific markets in which the Company operates; economic and regulatory changes; additional risks and costs associated with directly managing properties occupied by government tenants; adverse market and economic conditions and related impairments to the Company’s assets, including, but not limited to, receivables, real estate assets and other intangible assets; availability of financing; costs of complying with governmental laws and regulations; uncertainties associated with environmental and other regulatory matters; potential changes in the political environment and reduction in federal and/or state funding of our government tenants; we are and may continue to be subject to litigation; the Company’s ability to continue to qualify as a REIT under the Internal Revenue Code; and other factors detailed in the Company’s most recent Annual Report on Form 10-K for the period ended December 31, 2011, and other documents the Company files with the Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company cannot guarantee the accuracy of any such forward-looking statements contained in this press release, and the Company does not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Research Analysts/ Institutional Investors Contact:
Eddie Guilbert
770-418-8592
research.analysts@piedmontreit.com
Shareholder Services/Transfer Agent Services Contact:
Computershare, Inc.
866-354-3485
Investor.services@piedmontreit.com

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

 	  	September 30,
2012	 	 	December 31,
2011	 	
 	  	(unaudited)	 	 	 	 	
 	 	 	
Assets:	  	 	 	 	 	 	 	 	
Real estate assets, at cost:	  	 	 	 	 	 	 	 	
Land	  	$	627,812	  	 	$	640,196	  	
Buildings and improvements	  	 	3,760,847	  	 	 	3,759,596	  	
Buildings and improvements, accumulated depreciation	  	 	(857,993	) 	 	 	(792,342	) 	
Intangible lease asset	  	 	138,716	  	 	 	198,667	  	
Intangible lease asset, accumulated amortization	  	 	(79,640	) 	 	 	(119,419	) 	
Construction in progress	  	 	22,808	  	 	 	17,353	  	
 	  	 	 	 	 	 	 	 	
Total real estate assets	  	 	3,612,550	  	 	 	3,704,051	  	
 	 	 	
Investment in unconsolidated joint ventures	  	 	37,369	  	 	 	38,181	  	
Cash and cash equivalents	  	 	20,763	  	 	 	139,690	  	
Tenant receivables, net of allowance for doubtful accounts	  	 	24,768	  	 	 	24,722	  	
Straight line rent receivable	  	 	116,447	  	 	 	104,801	  	
Notes receivable	  	 	19,000	  	 	 	—  	  	
Due from unconsolidated joint ventures	  	 	533	  	 	 	788	  	
Restricted cash and escrows	  	 	23,001	  	 	 	9,039	  	
Prepaid expenses and other assets	  	 	13,552	  	 	 	9,911	  	
Goodwill	  	 	180,097	  	 	 	180,097	  	
Deferred financing costs, less accumulated amortization	  	 	7,022	  	 	 	5,977	  	
Deferred lease costs, less accumulated amortization	  	 	230,729	  	 	 	230,577	  	
 	  	 	 	 	 	 	 	 	
Total assets	  	$	4,285,831	  	 	$	4,447,834	  	

Liabilities:	  	 	 	 	 	 	 	 	
Line of credit and notes payable	  	$	1,436,025	  	 	$	1,472,525	  	
Accounts payable, accrued expenses, and accrued capital expenditures	  	 	109,125	  	 	 	122,986	  	
Deferred income	  	 	24,110	  	 	 	27,321	  	
Intangible lease liabilities, less accumulated amortization	  	 	42,375	  	 	 	49,037	  	
Interest rate swap	  	 	8,916	  	 	 	2,537	  	
 	  	 	 	 	 	 	 	 	
Total liabilities	  	 	1,620,551	  	 	 	1,674,406	  	
 	 	 	
Stockholders’ equity :	  	 	 	 	 	 	 	 	
Common stock	  	 	1,680	  	 	 	1,726	  	
Additional paid in capital	  	 	3,665,870	  	 	 	3,663,662	  	
Cumulative distributions in excess of earnings	  	 	(994,967	) 	 	 	(891,032	) 	
Other comprehensive loss	  	 	(8,916	) 	 	 	(2,537	) 	
 	  	 	 	 	 	 	 	 	
Piedmont stockholders’ equity	  	 	2,663,667	  	 	 	2,771,819	  	
Non-controlling interest	  	 	1,613	  	 	 	1,609	  	
 	  	 	 	 	 	 	 	 	
Total stockholders’ equity	  	 	2,665,280	  	 	 	2,773,428	  	
 	  	 	 	 	 	 	 	 	
Total liabilities and stockholders’ equity	  	$	4,285,831	  	 	$	4,447,834	  	

Net Debt (Debt less cash and cash equivalents and restricted cash and escrows)	  	 	1,392,261	  	 	 	1,323,796	  	
Total Gross Assets (1)	  	 	5,223,464	  	 	 	5,359,595	  	
 	 	 	
Number of shares of common stock outstanding at end of period	  	 	168,044	  	 	 	172,630	  	
 
(1) 	Total assets exclusive of accumulated depreciation and amortization related to real estate assets.	

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

 	  	Three Months Ended	 	 	Nine Months Ended	 	
 	  	9/30/2012	 	 	9/30/2011	 	 	9/30/2012	 	 	9/30/2011	 	
 	 	 	 	 	
Revenues:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental income	  	$	106,826	  	 	$	104,121	  	 	$	317,177	  	 	$	306,450	  	
Tenant reimbursements	  	 	27,470	  	 	 	28,234	  	 	 	81,120	  	 	 	85,703	  	
Property management fee revenue	  	 	520	  	 	 	110	  	 	 	1,719	  	 	 	1,303	  	
Other rental income	  	 	75	  	 	 	13	  	 	 	287	  	 	 	4,415	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	134,891	  	 	 	132,478	  	 	 	400,303	  	 	 	397,871	  	
 	 	 	 	 	
Operating expenses:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property operating costs	  	 	51,645	  	 	 	50,707	  	 	 	157,835	  	 	 	152,207	  	
Depreciation	  	 	28,489	  	 	 	25,891	  	 	 	83,252	  	 	 	76,193	  	
Amortization	  	 	15,302	  	 	 	14,808	  	 	 	39,474	  	 	 	39,098	  	
General and administrative	  	 	5,508	  	 	 	4,731	  	 	 	15,629	  	 	 	18,868	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses	  	 	100,944	  	 	 	96,137	  	 	 	296,190	  	 	 	286,366	  	

Real estate operating income	  	 	33,947	  	 	 	36,341	  	 	 	104,113	  	 	 	111,505	  	
 	 	 	 	 	
Other income (expense):	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest expense	  	 	(16,247	) 	 	 	(16,236	) 	 	 	(48,727	) 	 	 	(49,638	) 	
Interest and other income (expense)	  	 	383	  	 	 	(91	) 	 	 	765	  	 	 	3,130	  	
Equity in income of unconsolidated joint ventures	  	 	322	  	 	 	485	  	 	 	739	  	 	 	1,032	  	
Litigation settlement expense	  	 	(7,500	) 	 	 	—  	  	 	 	(7,500	) 	 	 	—  	  	
Gain on consolidation of a variable interest entity	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	1,532	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total other income (expense)	  	 	(23,042	) 	 	 	(15,842	) 	 	 	(54,723	) 	 	 	(43,944	) 	

Income from continuing operations	  	 	10,905	  	 	 	20,499	  	 	 	49,390	  	 	 	67,561	  	
 	 	 	 	 	
Discontinued operations :	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income	  	 	184	  	 	 	3,775	  	 	 	1,805	  	 	 	11,715	  	
Gain on sale of real estate assets	  	 	(254	) 	 	 	26,756	  	 	 	27,583	  	 	 	26,756	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from discontinued operations	  	 	(70	) 	 	 	30,531	  	 	 	29,388	  	 	 	38,471	  	

Net income	  	 	10,835	  	 	 	51,030	  	 	 	78,778	  	 	 	106,032	  	
 	 	 	 	 	
Less: Net income attributable to noncontrolling interest	  	 	(4	) 	 	 	(4	) 	 	 	(12	) 	 	 	(12	) 	

Net income attributable to Piedmont	  	$	10,831	  	 	$	51,026	  	 	$	78,766	  	 	$	106,020	  	

Weighted average common shares outstanding—diluted	  	 	168,929	  	 	 	173,045	  	 	 	171,295	  	 	 	172,996	  	
 	 	 	 	 	
Per Share Information — diluted:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from continuing operations	  	$	0.06	  	 	$	0.12	  	 	$	0.29	  	 	$	0.39	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from discontinued operations	  	$	0.00	  	 	$	0.17	  	 	$	0.17	  	 	$	0.22	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income available to common stockholders	  	$	0.06	  	 	$	0.29	  	 	$	0.46	  	 	$	0.61	  	

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

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	
 	  	Three Months Ended	 	 	Nine Months Ended	 	
 	  	9/30/2012	 	 	9/30/2011	 	 	9/30/2012	 	 	9/30/2011	 	
 	 	 	 	 	
Net income attributable to Piedmont	  	$	10,831	  	 	$	51,026	  	 	$	78,766	  	 	$	106,020	  	
 	 	 	 	 	
Depreciation(1) (2)	  	 	28,763	  	 	 	28,102	  	 	 	84,605	  	 	 	83,135	  	
Amortization (1)	  	 	15,366	  	 	 	16,616	  	 	 	39,744	  	 	 	44,601	  	
(Gain)/Loss on sale of real estate assets(1)	  	 	254	  	 	 	(26,826	) 	 	 	(27,583	) 	 	 	(26,872	) 	
Gain on consolidation of variable interest entity	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(1,532	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Funds from operations	  	 	55,214	  	 	 	68,918	  	 	 	175,532	  	 	 	205,352	  	
 	 	 	 	 	
Litigation settlement expense	  	 	7,500	  	 	 	—  	  	 	 	7,500	  	 	 	—  	  	
Acquisition costs	  	 	7	  	 	 	285	  	 	 	88	  	 	 	975	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core funds from operations	  	 	62,721	  	 	 	69,203	  	 	 	183,120	  	 	 	206,327	  	
 	 	 	 	 	
Depreciation of non real estate assets	  	 	196	  	 	 	84	  	 	 	397	  	 	 	422	  	
Stock-based and other non-cash compensation expense	  	 	869	  	 	 	1,111	  	 	 	1,492	  	 	 	2,975	  	
Deferred financing cost amortization	  	 	663	  	 	 	879	  	 	 	2,056	  	 	 	2,546	  	
Straight-line effects of lease revenue(1)	  	 	(4,193	) 	 	 	(4,129	) 	 	 	(11,236	) 	 	 	(4,488	) 	
Net effect of amortization of below-market in-place lease intangibles(1)	  	 	(1,315	) 	 	 	(1,817	) 	 	 	(4,631	) 	 	 	(4,850	) 	
Income from amortization of discount on purchase of mezzanine loans	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(484	) 	
Amortization of note payable step up	  	 	—  	  	 	 	471	  	 	 	—  	  	 	 	1,413	  	
Acquisition costs	  	 	(7	) 	 	 	(285	) 	 	 	(88	) 	 	 	(975	) 	
Non-incremental capital expenditures(3)	  	 	(38,583	) 	 	 	(14,529	) 	 	 	(64,430	) 	 	 	(45,009	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted funds from operations	  	 	20,351	  	 	 	50,988	  	 	 	106,680	  	 	 	157,877	  	

Weighted average common shares outstanding—diluted	  	 	168,929	  	 	 	173,045	  	 	 	171,295	  	 	 	172,996	  	
 	 	 	 	 	
Funds from operations per share (diluted)	  	$	0.33	  	 	$	0.40	  	 	$	1.03	  	 	$	1.19	  	
Core funds from operations per share (diluted)	  	$	0.37	  	 	$	0.40	  	 	$	1.07	  	 	$	1.19	  	
Adjusted funds from operations per share (diluted)	  	$	0.12	  	 	$	0.29	  	 	$	0.62	  	 	$	0.91	  	

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

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

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	
 	  	Three Months Ended	 	 	Nine Months Ended	 	
 	  	9/30/2012	 	 	9/30/2011	 	 	9/30/2012	 	 	9/30/2011	 	
 	 	 	 	 	
Net income attributable to Piedmont	  	$	10,831	  	 	$	51,026	  	 	$	78,766	  	 	$	106,020	  	
 	 	 	 	 	
Net income attributable to non-controlling interest	  	 	4	  	 	 	135	  	 	 	12	  	 	 	378	  	
Interest Expense	  	 	16,247	  	 	 	17,804	  	 	 	48,727	  	 	 	54,291	  	
Depreciation(1)	  	 	28,959	  	 	 	28,186	  	 	 	85,002	  	 	 	83,557	  	
Amortization(1)	  	 	15,366	  	 	 	16,616	  	 	 	39,744	  	 	 	44,601	  	
(Gain)/Loss on sale of real estate assets(1)	  	 	254	  	 	 	(26,826	) 	 	 	(27,583	) 	 	 	(26,872	) 	
Litigation settlement expense	  	 	7,500	  	 	 	—  	  	 	 	7,500	  	 	 	—  	  	
Gain on consolidation of variable interest entity	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(1,532)	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core EBITDA*	  	 	79,161	  	 	 	86,941	  	 	 	232,168	  	 	 	260,443	  	
 	 	 	 	 	
General & administrative expenses(1)	  	 	5,576	  	 	 	4,747	  	 	 	15,760	  	 	 	18,843	  	
Management fee revenue	  	 	(520	) 	 	 	(110	) 	 	 	(1,719	) 	 	 	(1,303	) 	
Interest and other income	  	 	(383	) 	 	 	74	  	 	 	(785	) 	 	 	(3,132	) 	
Lease termination income	  	 	(75	) 	 	 	33	  	 	 	(287	) 	 	 	(4,718	) 	
Lease termination expense—straight line rent & acquisition intangibles write-offs	  	 	122	  	 	 	260	  	 	 	385	  	 	 	739	  	
Straight line rent adjustment(1)	  	 	(4,337	) 	 	 	(4,296	) 	 	 	(11,643	) 	 	 	(4,963	) 	
Net effect of amortization of below-market in-place lease intangibles (1)	  	 	(1,293	) 	 	 	(1,911	) 	 	 	(4,609	) 	 	 	(5,115	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core Net Operating Income (cash basis)*	  	 	78,251	  	 	 	85,738	  	 	 	229,270	  	 	 	260,794	  	
 	 	 	 	 	
Acquisitions	  	 	(3,576	) 	 	 	(3,393	) 	 	 	(10,612	) 	 	 	(6,837	) 	
Dispositions	  	 	(321	) 	 	 	(7,699	) 	 	 	(2,499	) 	 	 	(23,051	) 	
Unconsolidated joint ventures	  	 	(735	) 	 	 	(818	) 	 	 	(1,923	) 	 	 	(2,172	) 	

Same Store NOI*	  	$	73,619	  	 	$	73,828	  	 	$	214,236	  	 	$	228,734	  	

Change period over period in same store NOI	  	 	(0.3	)% 	 	 	N/A	  	 	 	(6.3	)% 	 	 	N/A	  	
 	 	 	 	 	
Fixed Charge Coverage Ratio (Core EBITDA/ Interest Expense)(2)	  	 	4.9	  	 	 	 	 	 	 	 	 	 	 	 	 	
Annualized Core EBITDA (Core EBITDA x 4)	  	$	316,644	  	 	 	 	 	 	 	 	 	 	 	 	 	

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

Exhibit 99.2

Quarterly Supplemental Information
September 30, 2012

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

Piedmont Office Realty Trust, Inc.
Quarterly Supplemental Information
Index

 	 	 	
 	  	Page	
 	 	
Introduction	  	 	
Corporate Data	  	3	
Investor Information	  	4	
Financial Highlights	  	5-8	
Key Performance Indicators	  	9	
 	 	
Financials	  	 	
Balance Sheet	  	10	
Income Statements	  	11-12	
Funds From Operations / Adjusted Funds From Operations	  	13	
Same Store Analysis	  	14-15	
Capitalization Analysis	  	16	
Debt Summary	  	17	
Debt Detail	  	18	
Debt Analysis	  	19	
 	 	
Operational & Portfolio Information - Office Investments	  	 	
Tenant Diversification	  	20	
Tenant Credit Rating & Lease Distribution Information	  	21	
Leased Percentage Information	  	22	
Rental Rate Roll Up / Roll Down Analysis	  	23	
Lease Expiration Schedule	  	24	
Quarterly Lease Expirations	  	25	
Annual Lease Expirations	  	26	
Capital Expenditures & Commitments	  	27	
Contractual Tenant Improvements & Leasing Commissions	  	28	
Geographic Diversification	  	29	
Geographic Diversification by Location Type	  	30	
Industry Diversification	  	31	
Property Investment Activity	  	32	
Value-Add Activity	  	33	
 	 	
Other Investments	  	 	
Other Investments Detail	  	34	
 	 	
Supporting Information	  	 	
Definitions	  	35-36	
Research Coverage	  	37	
Non-GAAP Reconciliations & Other Detail	  	38-41	
Property Detail	  	42-43	
Risks, Uncertainties and Limitations	  	44	

Notice to Readers:
Please refer to page 44 for a discussion of important risks related to the business of Piedmont Office Realty Trust, Inc., as well as an investment in its securities, including risks that could cause actual results and events to differ materially from results and events referred to in the forward-looking information. Considering these risks, uncertainties, assumptions, and limitations, the forward-looking statements about leasing, financial operations, leasing prospects, etc. contained in this supplemental reporting package might not occur.
Certain prior period amounts have been reclassified to conform to the current period financial statement presentation. In addition, many of the schedules herein contain rounding to the nearest thousands or millions and, therefore, the schedules may not total due to this rounding convention. When the Company sells properties, it restates historical income statements with the financial results of the sold assets presented in discontinued operations.

Piedmont Office Realty Trust, Inc.
Corporate Data

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

 	  	As of
    September 30, 2012    	 	  	 	  	As of
    December 31, 2011    	 	
 	 	 	 	
Number of consolidated office properties (2)	  	 	74	  	  	 	  	 	79	  	
Rentable square footage (in thousands) (2)	  	 	20,488	  	  	 	  	 	20,942	  	
Percent leased (3)	  	 	87.0%	  	  	 	  	 	86.5%	  	
Percent leased - stabilized portfolio (4)	  	 	90.1%	  	  	 	  	 	89.1%	  	
Capitalization (in thousands):	  	 	 	 	  	 	  	 	 	 	
Total debt - principal amount outstanding	  	 	$1,436,025	  	  	 	  	 	$1,472,525	  	
Equity market capitalization (5)	  	 	$2,913,889	  	  	 	  	 	$2,941,611	  	
Total market capitalization (5)	  	 	$4,349,914	  	  	 	  	 	$4,414,136	  	
Total debt / Total market capitalization	  	 	33.0%	  	  	 	  	 	33.4%	  	
Total debt / Total gross assets	  	 	27.5%	  	  	 	  	 	27.5%	  	
Common stock data	  	 	 	 	  	 	  	 	 	 	
High closing price during quarter	  	 	$17.92	  	  	 	  	 	$17.50	  	
Low closing price during quarter	  	 	$16.64	  	  	 	  	 	$15.42	  	
Closing price of common stock at period end	  	 	$17.34	  	  	 	  	 	$17.04	  	
Weighted average fully diluted shares outstanding (in thousands) (6)	  	 	171,295	  	  	 	  	 	172,981	  	
Shares of common stock issued and outstanding (in thousands)	  	 	168,044	  	  	 	  	 	172,630	  	
Rating / outlook	  	 	 	 	  	 	  	 	 	 	
Standard & Poor’s	  	 	BBB / Stable	  	  	 	  	 	BBB / Stable	  	
Moody’s	  	 	Baa2 / Stable	  	  	 	  	 	Baa2 / Stable	  	
Employees	  	 	118	  	  	 	  	 	116	  	

 
(1) 	The definition for Annualized Lease Revenue can be found on page 35.	
(2) 	As of September 30, 2012, our consolidated office portfolio consisted of 74 properties (exclusive of our equity interests in five properties owned through unconsolidated joint ventures). During the first quarter of 2012, we sold our portfolio of assets in Portland, OR, comprised of four office properties totaling 326,000 square feet and developable land totaling 18.2 acres. During the second quarter of 2012, we sold 26200 Enterprise Way, a 145,000 square foot office building located in Lake Forest, CA, and we purchased approximately 2.0 acres of developable land in Atlanta, GA. For additional detail on asset transactions during 2012, please refer to page 32. Until September 21, 2012, we owned two industrial properties located in Duncan, SC. Information regarding these industrial assets is excluded from this line item.	
(3) 	Calculated as leased square footage on September 30, 2012 plus square footage associated with executed new leases for currently vacant spaces divided by total rentable square footage (defined in note 2 above), expressed as a percentage. This measure is presented for our 74 consolidated office properties and excludes unconsolidated joint venture properties. Please refer to page 22 for additional analyses regarding Piedmont's leased percentage.	
(4) 	Please refer to page 33 for information regarding value-add properties, data for which is removed from stabilized portfolio totals.	
(5) 	Based on a share price of $17.34 as of September 28, 2012.	
(6) 	Weighted average fully diluted shares outstanding are presented on a year-to-date basis for each period.	
 
3

Piedmont Office Realty Trust, Inc.
Investor Information

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

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

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

Transfer Agent	 	 	  	Corporate Counsel	
 	 	 	
Computershare	 	 	  	King & Spalding	
P.O. Box 358010
Pittsburgh, PA 15252-8010
Phone: 866.354.3485	 	 	  	1180 Peachtree Street, NE
Atlanta, GA 30309
Phone: 404.572.4600	
 
4

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

 	
 	
Financial Results (1)                    	
- Funds from operations (FFO) for the quarter ended September 30, 2012 was $55.2 million, or $0.33 per share (diluted), compared to $68.9 million, or $0.40 per share (diluted), for the same quarter in 2011. FFO for the nine months ended September 30, 2012 was $175.5 million, or $1.03 per share (diluted), compared to $205.4 million, or $1.19 per share (diluted), for the same period in 2011. The decrease in FFO for the three months and the nine months ended September 30, 2012 as compared to the same periods in 2011 was principally related to the following factors: 1) decreased operating income due to the disposition of certain assets with meaningful operating income contributions, notably 35 West Wacker Drive, offset somewhat by operating income contributions from newly acquired assets, 2) lower overall occupancy in 2012 as compared to 2011, 3) accrued potential litigation settlement expenses of $7.5 million in 2012 and 4) for the nine months only, reduced termination fee income in 2012 as compared to 2011. The reduction in FFO in 2012 as compared to 2011 was offset somewhat by reduced interest expense attributable to decreased total debt outstanding due to the repayment of several loans during the last twelve months.
 
- Core funds from operations (Core FFO) for the quarter ended September 30, 2012 was $62.7 million, or $0.37 per share (diluted), compared to $69.2 million, or $0.40 per share (diluted), for the same quarter in 2011. Core FFO for the nine months ended September 30, 2012 was $183.1 million, or $1.07 per share (diluted), compared to $206.3 million, or $1.19 per share (diluted), for the same period in 2011. The decrease in Core FFO for the three months and the nine months ended September 30, 2012 as compared to the same periods in 2011 was principally related to the items described above for changes in FFO, with the exception of the accrued potential litigation settlement expenses, which were added back to Core FFO since they were related to significant non-recurring items.
 
- Adjusted funds from operations (AFFO) for the quarter ended September 30, 2012 was $20.4 million, or $0.12 per share (diluted), compared to $51.0 million, or $0.29 per share (diluted), for the same quarter in 2011. AFFO for the nine months ended September 30, 2012 was $106.7 million, or $0.62 per share (diluted), compared to $157.9 million, or $0.91 per share (diluted), for the same period in 2011. The decrease in AFFO for the three months and the nine months ended September 30, 2012 as compared to the same periods in 2011 was primarily related to the items described above for changes in FFO, as well as increased non-incremental capital expenditures in 2012 as compared to 2011 attributable to the high volume of recent leasing activity. The decrease in AFFO for the nine months ended September 30, 2012 as compared to the same period in 2011 was also affected by increased straight line rent adjustments associated with rental abatements on newly commenced leases in 2012 as compared to 2011.	
 	
Operations                                     	
- On a square footage leased basis, our total office portfolio was 87.0% leased as of September 30, 2012, as compared to 86.5% as of December 31, 2011 and 85.0% as of June 30, 2012. During the twelve-month period ending September 30, 2012, our same store stabilized leased percentage increased from 87.9% at September 30, 2011 to 90.0% at September 30, 2012. The same store stabilized leased percentage excludes the impact of value-add acquisitions completed in 2010 and 2011 (see page 33) from our same store portfolio. The primary reason for the increase in the leased percentage for our same store stabilized assets during that period is positive net absorption associated with several recent large lease transactions for previously vacant space, notably the Catamaran lease at Windy Point II in Schaumburg, IL and the US Foods lease at River Corporate Center in Tempe, AZ. Please refer to page 22 for additional leased percentage information.
 
- The weighted average remaining lease term of our portfolio was 7.0 years(2) as of September 30, 2012 as compared to 6.4 years at December 31, 2011.
 
- During the three months ended September 30, 2012, the Company completed 1,052,000 square feet of total leasing. Of the total office leasing activity during the quarter, we signed renewal leases for 39,000 square feet and new tenant leases for 1,013,000 square feet (including a 396,000 square foot direct lease with Aon Corporation). A new lease for 26,000 square feet was signed at a joint venture asset during the quarter. During the first nine months of the year, we completed 2,068,000 square feet of leasing for our consolidated office properties and 2,467,000 square feet of leasing inclusive of activity associated with our industrial and unconsolidated joint venture assets. The average committed capital cost for leases signed during the first nine months of the year at our consolidated office properties was $5.52 per square foot per year of lease term. Average committed capital cost per square foot per year of lease term for renewal leases signed during the nine months ended September 30, 2012 was $2.48 and average committed capital cost per square foot per year of lease term for new leases signed during the same time period was $5.95 (see page 28).	
(1) FFO, Core FFO and AFFO are supplemental non-GAAP financial measures. See pages 35-36 for definitions of non-GAAP financial measures. See pages 13 and 38 for reconciliations of FFO, Core FFO and AFFO to Net Income.
(2) Remaining lease term (after taking into account leases for vacant spaces which had been executed but not commenced as of September 30, 2012) is weighted based on Annualized Lease Revenue, as defined on page 35.	
 
5

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

 
 	-	During the three months ended September 30, 2012, we executed eight leases greater than 20,000 square feet at our consolidated office properties. Please see information on those leases listed below.	

 Tenant Name	  	Property	  	Property Location	  	Square Feet
Leased	  	Expiration Year	  	Lease Type	
 Aon Corporation	  	Aon Center	  	Chicago, IL	  	396,406	  	2028	  	New (former sub-tenant)	
 Catamaran, Inc.	  	Windy Point II	  	Schaumburg, IL	  	300,686	  	2024	  	New	
 Guidance Software, Inc.	  	1055 East Colorado Boulevard	  	Pasadena, CA	  	86,790	  	2024	  	New	
 General Electric Company	  	500 West Monroe Street	  	Chicago, IL	  	53,972	  	2027	  	New	
 BGC Brokers US, LP	  	500 West Monroe Street	  	Chicago, IL	  	31,999	  	2028	  	New	
 Starr Indemnity & Liability Company, Inc.	  	500 West Monroe Street	  	Chicago, IL	  	26,966	  	2028	  	Renewal / Expansion	
 Schlumberger Technology Corp.	  	1200 Enclave Parkway	  	Houston, TX	  	26,358	  	2024	  	Expansion	
 Hospital Management Services of Florida, Inc.	  	Sarasota Commerce Center II	  	Sarasota, FL	  	21,821	  	2020	  	Expansion	
Leasing Update                                         
 
 	-	As of September 30, 2012, there were three tenants whose leases contributed greater than 1% to our Annualized Lease Revenue (ALR) and were in holdover or were scheduled to expire during the eighteen month period following the end of the third quarter of 2012. Information regarding the leasing status of the spaces associated with those tenants’ leases is presented below.	

Tenant Name	 	Property	 	Property Location	 	Square
Footage  (1)	 	Percentage of Current
Quarter ALR (%)	 	Expiration (2)	 	Current Leasing Status	
United States of America
(National Park Service)	 	1201 Eye Street	 	Washington, D.C.	 	219,750	 	1.8%	 	Holdover	 	National Park Service is now in holdover status. The Company anticipates that the National Park Service will sign a medium-term lease renewal for its existing space at the building.	
Comptroller of the Currency	 	One
Independence
Square	 	Washington, D.C.	 	333,815	 	3.8%	 	Q1 2013	 	The tenant is expected to vacate at lease expiration. The Company is actively marketing the space for lease.	
BP	 	Aon Center	 	Chicago, IL	 	776,359	 	5.8%	 	Q4 2013	 	During the third quarter, Aon Corporation signed a 396,000 square foot, 15-year lease for space it currently subleases from BP. There will be no downtime between the expiration of the BP lease and the commencement of the Aon lease. Additionally, long-term leases comprising approximately 37% of the square footage leased by BP have been entered into with: Thoughtworks, Integrys Energy Group, and Federal Home Loan Bank. In total, leases comprising approximately 88% of the square footage leased by BP have been signed.	

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

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

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

Tenant Name	  	Property	  	Property Location	  	Square Feet
Leased	  	Space Status	  	Estimated
Commencement Date	  	New / Expansion	
GE Capital (1)	  	500 West Monroe Street	  	Chicago, IL	  	86,028	  	Vacant	  	Q4 2012 - Q4 2014	  	Expansion	
General Electric Company	  	500 West Monroe Street	  	Chicago, IL	  	53,972	  	Vacant	  	Q1 2013	  	New	
Catamaran, Inc.	  	Windy Point II	  	Schaumburg, IL	  	300,686	  	Vacant	  	Q1 2013	  	New	
Brother International Corporation	  	200 Bridgewater Crossing	  	Bridgewater, NJ	  	101,724	  	Vacant	  	Q1 2013	  	New	
Guidance Software, Inc.	  	1055 East Colorado Boulevard	  	Pasadena, CA	  	66,489	  	Vacant	  	Q3 2013	  	New	
Guidance Software, Inc.	  	1055 East Colorado Boulevard	  	Pasadena, CA	  	20,301	  	Not Vacant	  	Q3 2013	  	New	
Aon Corporation	  	Aon Center	  	Chicago, IL	  	396,406	  	Not Vacant	  	Q4 2013	  	New	
Thoughtworks, Inc.	  	Aon Center	  	Chicago, IL	  	52,529	  	Not Vacant	  	Q4 2013	  	New	
Federal Home Loan Bank of Chicago	  	Aon Center	  	Chicago, IL	  	79,054	  	Not Vacant	  	Q4 2013	  	New	
Integrys Business Support, LLC	  	Aon Center	  	Chicago, IL	  	159,432	  	Not Vacant	  	Q2 2014	  	New	
Piper Jaffray & Co.	  	US Bancorp Center	  	Minneapolis, MN	  	123,882	  	Not Vacant	  	Q2 2014	  	New	
(1) The square footage presented includes the 19th floor premises, which is leased through fourth quarter 2012. GE is required to lease that space one year after the commencement of the renewal term.
Occupancy versus NOI Analysis            
 	-	Piedmont has been in a period of high lease rollover since 2010. This high lease rollover has resulted in a decrease in leased percentage and economic leased percentage. This, in turn, has effected a lower Same Store NOI than might otherwise be anticipated given the overall leased percentage and the historical relationship between leased percentage and Same Store NOI. The decreased economic leased percentage is attributable to two factors:	
1) leases which have been contractually entered into for currently vacant space which have not commenced (amounting to approximately 706,000 square feet of leases as of September 30, 2012, or 3.4% of the office portfolio); and
2) leases which have commenced but the tenants have not commenced paying full rent due to rental abatements (amounting to 1.6 million square feet of leases as of September 30, 2012, or a 5.7% impact to leased percentage on an economic basis). Please see the chart below for a listing of major contributors.
As the executed but not commenced leases become effective and as the rental abatement periods expire, there will be greater Same Store NOI growth than might otherwise be expected based on changes in overall leased percentage alone during that time period.
 
 	-	Due to the current economic environment, many new leases provide for rental abatement concessions to tenants. Those rental abatements typically occur at the beginning of a new lease's term. Since 2010, Piedmont has withstood a period of concentrated lease expirations. Due to the large number of new leases in the Company's portfolio, abatements provided under those new leases have impacted the Company's cash net operating income and AFFO. Presented below is a schedule of leases greater than 50,000 square feet that are currently under some form of rent abatement.	

Tenant Name	  	Property	  	Property Location	  	Square Feet
Leased	  	Abatement Structure	  	Abatement Expiration	
US Foods, Inc.	  	River Corporate Center	  	Tempe, AZ	  	133,225	  	Base Rent	  	Q1 2013	
State Street Bank	  	1200 Crown Colony Drive	  	Quincy, MA	  	234,668	  	Base Rent	  	Q1 2013	
KPMG	  	Aon Center	  	Chicago, IL	  	238,701	  	Gross Rent	  	Q3 2013	
United HealthCare	  	Aon Center	  	Chicago, IL	  	55,059	  	Gross Rent	  	Q4 2013	
Synchronoss Technologies	  	200 Bridgewater Crossing	  	Bridgewater, NJ	  	78,581	  	Base Rent (Partial)	  	Q4 2012	
HD Vest	  	Las Colinas Corporate Center I	  	Irving, TX	  	81,069	  	Base Rent	  	Q1 2013	
Schlumberger Technology Corporation	  	1200 Enclave Parkway	  	Houston, TX	  	131,790	  	Gross Rent / Base Rent (Partial)	  	Q1 2014	
Financing and Capital Activity            
 
 	-	As of September 30, 2012, our ratio of debt to total gross assets was 27.5%, our ratio of debt to gross real estate assets was 31.6%, and our ratio of debt to total market capitalization was 33.0%. These debt ratios are based on total principal amount outstanding for our various loans at September 30, 2012.	
 
 	-	On September 21, 2012, Piedmont completed the sale of its two remaining industrial properties, located at 110 and 112 Hidden Lake Circle in Duncan, SC. The buildings are comprised of 787,380 square feet and are 100% leased. The properties were sold for $25.9 million, or $33 per square foot. Piedmont recorded a loss on the sale of the assets of approximately $0.25 million. The sale allowed the Company to divest its only remaining industrial properties in order to focus its operations on the ownership and management of office properties, achieving one of the Company's stated strategic objectives.	
 
7

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

 
 	-	On August 21, 2012, Piedmont closed on a new $500 million unsecured line of credit in order to replace an expiring credit facility of equal size. The revolver has a term of four years, with two six-month extension options, for a total potential term of five years. The interest rate for LIBOR-based loans is LIBOR + 117.5 basis points and the annual facility fee is 22.5 basis points. The facility is structured to allow for an increase in size up to a total commitment of $1.0 billion at the election of Piedmont; however, no existing bank has an obligation to participate in any such increase. JP Morgan Securities and RBC Capital Markets were Joint Lead Arrangers for the loan. The syndicate consists of a total of 11 banks. The Company's previous revolver was terminated concurrently with the closing of the new facility.	
 
 	-	On August 1, 2012, the Board of Directors of Piedmont declared dividends for the third quarter of 2012 in the amount of $0.20 per common share outstanding to stockholders of record as of the close of business on August 31, 2012. The dividends were paid on September 21, 2012. The Company's dividend payout percentage for the nine months ended September 30, 2012 was 56.0% of Core FFO and 96.2% of AFFO.	
 
 	-	During the third quarter of 2012, the Company repurchased approximately 2.2 million shares of common stock at an average purchase price of $16.95 per share, or approximately $37.1 million in aggregate (before consideration of transaction costs). Since the stock repurchase program's inception last fall, the Company has repurchased a total of 5.0 million shares at an average price of $16.77 per share, or approximately $83.2 million in aggregate (before consideration of transaction costs). Any future repurchases of the Company's common stock will be made at the discretion of the Company. As of quarter end, there was Board-approved capacity for additional repurchases totaling approximately $217 million under the stock repurchase plan.	
Subsequent Events                              
 
 	-	On October 15, 2012, Piedmont completed the purchase of approximately 3.0 acres of land adjacent to Glenridge Highlands II, one of the Company’s properties in Atlanta, GA. Commonly referred to as Glenridge Highlands III, the site is located within the Central Perimeter submarket of Atlanta and is well located adjacent to the intersection of Interstate 285 and state highway Georgia 400. The location offers ease of access for commuter traffic and the ability for tenants to attract employees from across the northern portion of the Atlanta metropolitan area. The site is zoned for office development and will accommodate a building consisting of approximately 113,000 square feet. The acquisition adds to the Company's developable land holdings and allows the Company to control a site that is directly competitive to Glenridge Highlands II.	
 
 	-	On October 30, 2012, the Board of Directors of Piedmont declared dividends for the fourth quarter of 2012 in the amount of $0.20 per common share outstanding to stockholders of record as of the close of business on November 30, 2012. The dividends are to be paid on December 21, 2012.	
 
 	-	Since 2007, the Company has been a defendant in two class action lawsuits alleging inadequate disclosures in 2007 in SEC filings related to its internalization, response to a tender offer, and amendments to the Company’s charter. In August 2012, the court ruling in one of the cases granted Piedmont's motion for dismissal, and, in October 2012, the court ruling in the other case granted summary judgment in Piedmont’s favor and dismissed all charges. The plaintiffs appealed both rulings. Subsequent to the appeals, the Company reached tentative settlements with the plaintiffs in both cases totaling $7.5 million. The claims are within available insurance limits and the Company will seek recovery of these settlements from its insurance carriers after approval of the settlements by the court. See Piedmont’s Form 10-Q dated as of September 30, 2012 for further disclosure.	
 
 	-	Subsequent to quarter end, Piedmont entered into a lease renewal with US Bancorp for 395,000 square feet at US Bancorp Center in Minneapolis, MN. The lease renewal is for a term of 10 years and further mitigates lease expiration exposure for the Company in 2014. As of the signing of this lease renewal, of the 635,000 square feet currently leased by US Bancorp at US Bancorp Center, a total of approximately 519,000 square feet has been released under long-term leases.	
Guidance for 2012                               
 
 	-	The Company is adjusting its financial guidance for calendar year 2012 to the upper end of its previously published range as follows:	

 	  	Low        High	
Core Funds from Operations	  	$240   -  $250 million	
Core Funds from Operations per diluted share	  	$1.40  -  $1.45	
These estimates reflect management’s view of current market conditions and incorporate certain economic and operational assumptions and projections, including the disposition of 35 West Wacker Drive, which contributed approximately $0.13 per share of funds from operations in 2011. Actual results could differ from these estimates. Note that individual quarters may fluctuate on both a cash and an accrual basis due to the timing of lease commencements and expirations, repairs and maintenance, capital expenditures, capital markets activities and one-time revenue or expense events. In addition, the Company’s guidance is based on information available to management as of the date of this supplemental report.
 
8

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

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

 	 	Three Months Ended	 	
 
Selected Operating Data	 	 
      9/30/2012      	 	 	 
      6/30/2012      	 	 	 
      3/31/2012      	 	 	 
      12/31/2011      	 	 	 
      9/30/2011      	 	
 	 	 	 	 	 	
Percent leased (1)	 	 	87.0%	  	 	 	85.0%	  	 	 	84.4%	  	 	 	86.5%	  	 	 	86.4%	  	
 	 	 	 	 	 	
Percent leased - stabilized portfolio (1) (2)	 	 	90.1%	  	 	 	88.1%	  	 	 	87.5%	  	 	 	89.1%	  	 	 	88.8%	  	
 	 	 	 	 	 	
Rental income	 	 	$106,826	  	 	 	$105,408	  	 	 	$104,943	  	 	 	$105,643	  	 	 	$104,121	  	
 	 	 	 	 	 	
Total revenues	 	 	$134,891	  	 	 	$133,091	  	 	 	$132,320	  	 	 	$135,623	  	 	 	$132,478	  	
 	 	 	 	 	 	
Total operating expenses	 	 	$100,944	  	 	 	$97,467	  	 	 	$97,778	  	 	 	$103,195	  	 	 	$96,137	  	
 	 	 	 	 	 	
Real estate operating income	 	 	$33,947	  	 	 	$35,624	  	 	 	$34,542	  	 	 	$32,428	  	 	 	$36,341	  	
 	 	 	 	 	 	
Core EBITDA	 	 	$79,161	  	 	 	$76,327	  	 	 	$76,680	  	 	 	$82,523	  	 	 	$86,941	  	
 	 	 	 	 	 	
Core FFO	 	 	$62,721	  	 	 	$60,356	  	 	 	$60,043	  	 	 	$65,270	  	 	 	$69,203	  	
 	 	 	 	 	 	
Core FFO per share - diluted	 	 	$0.37	  	 	 	$0.35	  	 	 	$0.35	  	 	 	$0.38	  	 	 	$0.40	  	
 	 	 	 	 	 	
AFFO	 	 	$20,351	  	 	 	$36,216	  	 	 	$50,113	  	 	 	$44,728	  	 	 	$50,988	  	
 	 	 	 	 	 	
AFFO per share - diluted	 	 	$0.12	  	 	 	$0.21	  	 	 	$0.29	  	 	 	$0.26	  	 	 	$0.29	  	
 	 	 	 	 	 	
Gross dividends	 	 	$33,675	  	 	 	$34,418	  	 	 	$34,526	  	 	 	$54,441	  	 	 	$54,441	  	
 	 	 	 	 	 	
Dividends per share	 	 	$0.200	  	 	 	$0.200	  	 	 	$0.200	  	 	 	$0.315	  	 	 	$0.315	  	
 	 	 	 	 	 	
Selected Balance Sheet Data	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	
Total real estate assets	 	 	$3,612,550	  	 	 	$3,638,101	  	 	 	$3,657,677	  	 	 	$3,704,051	  	 	 	$3,926,638	  	
 	 	 	 	 	 	
Total gross real estate assets	 	 	$4,550,183	  	 	 	$4,558,128	  	 	 	$4,590,544	  	 	 	$4,615,812	  	 	 	$4,875,854	  	
 	 	 	 	 	 	
Total assets	 	 	$4,285,831	  	 	 	$4,328,308	  	 	 	$4,326,698	  	 	 	$4,447,834	  	 	 	$4,613,118	  	
 	 	 	 	 	 	
Net debt (3)	 	 	$1,392,261	  	 	 	$1,325,610	  	 	 	$1,298,738	  	 	 	$1,323,796	  	 	 	$1,600,650	  	
 	 	 	 	 	 	
Total liabilities	 	 	$1,620,551	  	 	 	$1,601,568	  	 	 	$1,550,040	  	 	 	$1,674,406	  	 	 	$1,896,195	  	
 	 	 	 	 	 	
Ratios	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	
Core EBITDA margin (4)	 	 	58.5%	  	 	 	56.9%	  	 	 	57.1%	  	 	 	55.8%	  	 	 	59.8%	  	
 	 	 	 	 	 	
Fixed charge coverage ratio (5)	 	 	4.9 x	  	 	 	4.8 x	  	 	 	4.6 x	  	 	 	4.7 x	  	 	 	4.9 x	  	
 	 	 	 	 	 	
Net debt to core EBITDA (6) (7)	 	 	4.4 x	  	 	 	4.3 x	  	 	 	4.2 x	  	 	 	4.0 x	  	 	 	4.6 x	  	

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

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

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	  September 30, 2012  	 	 	  June 30, 2012  	 	 	  March 31, 2012  	 	 	  December 31, 2011  	 	 	  September 30, 2011  	 	
Assets:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Real estate, at cost:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Land assets	 	  $	627,812 	  	 	  $	629,476 	  	 	  $	631,745 	  	 	  $	640,196 	  	 	  $	693,229 	  	
Buildings and improvements	 	 	3,760,847 	  	 	 	3,754,954 	  	 	 	3,750,475 	  	 	 	3,759,596 	  	 	 	3,930,126 	  	
Buildings and improvements, accumulated depreciation	 	 	(857,993)	  	 	 	(837,285)	  	 	 	(813,679)	  	 	 	(792,342)	  	 	 	(807,917)	  	
Intangible lease asset	 	 	138,716 	  	 	 	149,544 	  	 	 	191,599 	  	 	 	198,667 	  	 	 	232,973 	  	
Intangible lease asset, accumulated amortization	 	 	(79,640)	  	 	 	(82,742)	  	 	 	(119,188)	  	 	 	(119,419)	  	 	 	(141,299)	  	
Construction in progress	 	 	22,808 	  	 	 	24,154 	  	 	 	16,725 	  	 	 	17,353 	  	 	 	19,526 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total real estate assets	 	 	3,612,550 	  	 	 	3,638,101 	  	 	 	3,657,677 	  	 	 	3,704,051 	  	 	 	3,926,638 	  	
Investment in unconsolidated joint ventures	 	 	37,369 	  	 	 	37,580 	  	 	 	37,901 	  	 	 	38,181 	  	 	 	38,391 	  	
Cash and cash equivalents	 	 	20,763 	  	 	 	26,869 	  	 	 	28,679 	  	 	 	139,690 	  	 	 	16,128 	  	
Tenant receivables, net of allowance for doubtful accounts	 	 	24,768 	  	 	 	22,884 	  	 	 	24,932 	  	 	 	24,722 	  	 	 	32,066 	  	
Straight line rent receivable	 	 	116,447 	  	 	 	111,731 	  	 	 	106,723 	  	 	 	104,801 	  	 	 	110,818 	  	
Notes receivable	 	 	19,000 	  	 	 	19,000 	  	 	 	19,000 	  	 	 	-     	  	 	 	-     	  	
Due from unconsolidated joint ventures	 	 	533 	  	 	 	569 	  	 	 	449 	  	 	 	788 	  	 	 	643 	  	
Escrow deposits and restricted cash	 	 	23,001 	  	 	 	48,046 	  	 	 	25,108 	  	 	 	9,039 	  	 	 	47,747 	  	
Prepaid expenses and other assets	 	 	13,552 	  	 	 	7,385 	  	 	 	12,477 	  	 	 	9,911 	  	 	 	13,978 	  	
Goodwill	 	 	180,097 	  	 	 	180,097 	  	 	 	180,097 	  	 	 	180,097 	  	 	 	180,097 	  	
Deferred financing costs, less accumulated amortization	 	 	7,022 	  	 	 	4,597 	  	 	 	5,187 	  	 	 	5,977 	  	 	 	4,788 	  	
Deferred lease costs, less accumulated amortization	 	 	230,729 	  	 	 	231,449 	  	 	 	228,468 	  	 	 	230,577 	  	 	 	241,824 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total assets	 	  $	4,285,831 	  	 	  $	4,328,308 	  	 	  $	4,326,698 	  	 	  $	4,447,834 	  	 	  $	4,613,118 	  	

Liabilities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Line of credit and notes payable	 	  $	1,436,025 	  	 	  $	1,400,525 	  	 	  $	1,352,525 	  	 	  $	1,472,525 	  	 	  $	1,664,525 	  	
Accounts payable, accrued expenses, and accrued capital expenditures	 	 	109,125 	  	 	 	126,207 	  	 	 	116,292 	  	 	 	122,986 	  	 	 	143,106 	  	
Deferred income	 	 	24,110 	  	 	 	23,668 	  	 	 	32,031 	  	 	 	27,321 	  	 	 	32,514 	  	
Intangible lease liabilities, less accumulated amortization	 	 	42,375 	  	 	 	44,246 	  	 	 	46,640 	  	 	 	49,037 	  	 	 	56,050 	  	
Interest rate swap	 	 	8,916 	  	 	 	6,922 	  	 	 	2,552 	  	 	 	2,537 	  	 	 	-     	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities	 	 	1,620,551 	  	 	 	1,601,568 	  	 	 	1,550,040 	  	 	 	1,674,406 	  	 	 	1,896,195 	  	
 	 	 	 	 	 	
Stockholders’ equity:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Common stock	 	 	1,680 	  	 	 	1,702 	  	 	 	1,726 	  	 	 	1,726 	  	 	 	1,728 	  	
Additional paid in capital	 	 	3,665,870 	  	 	 	3,665,284 	  	 	 	3,664,202 	  	 	 	3,663,662 	  	 	 	3,663,155 	  	
Cumulative distributions in excess of earnings	 	 	(994,967)	  	 	 	(934,933)	  	 	 	(888,331)	  	 	 	(891,032)	  	 	 	(952,370)	  	
Other comprehensive loss	 	 	(8,916)	  	 	 	(6,922)	  	 	 	(2,552)	  	 	 	(2,537)	  	 	 	-     	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Piedmont stockholders’ equity	 	 	2,663,667 	  	 	 	2,725,131 	  	 	 	2,775,045 	  	 	 	2,771,819 	  	 	 	2,712,513 	  	
Non-controlling interest	 	 	1,613 	  	 	 	1,609 	  	 	 	1,613 	  	 	 	1,609 	  	 	 	4,410 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total stockholders’ equity	 	 	2,665,280 	  	 	 	2,726,740 	  	 	 	2,776,658 	  	 	 	2,773,428 	  	 	 	2,716,923 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities, redeemable common stock and stockholders’ equity	 	  $	4,285,831 	  	 	  $	4,328,308 	  	 	  $	4,326,698 	  	 	  $	4,447,834 	  	 	  $	4,613,118 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Common stock outstanding at end of period	 	 	168,044 	  	 	 	170,235 	  	 	 	172,630 	  	 	 	172,630 	  	 	 	172,827 	  	

 
10

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

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

Revenues:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental income	 	    $	106,826 	  	 	    $	105,408 	  	 	    $	104,943 	  	 	    $	105,643 	  	 	    $	104,121 	  	
Tenant reimbursements	 	 	27,470 	  	 	 	26,969 	  	 	 	26,680 	  	 	 	29,379 	  	 	 	28,234 	  	
Property management fee revenue	 	 	520 	  	 	 	626 	  	 	 	574 	  	 	 	281 	  	 	 	110 	  	
Other rental income	 	 	75 	  	 	 	88 	  	 	 	123 	  	 	 	320 	  	 	 	13 	  	
 	 	 	 	 	
      Total revenues	 	 	134,891 	  	 	 	133,091 	  	 	 	132,320 	  	 	 	135,623 	  	 	 	132,478 	  	
 	 	 	 	 	 	
Operating expenses:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property operating costs	 	 	51,645 	  	 	 	53,571 	  	 	 	52,619 	  	 	 	54,992 	  	 	 	50,707 	  	
Depreciation	 	 	28,489 	  	 	 	27,586 	  	 	 	27,176 	  	 	 	26,611 	  	 	 	25,891 	  	
Amortization	 	 	15,302 	  	 	 	11,445 	  	 	 	12,726 	  	 	 	15,387 	  	 	 	14,808 	  	
Impairment loss	 	 	-     	  	 	 	-     	  	 	 	-     	  	 	 	-     	  	 	 	-     	  	
General and administrative	 	 	5,508 	  	 	 	4,865 	  	 	 	5,257 	  	 	 	6,205 	  	 	 	4,731 	  	
 	 	 	 	 	
      Total operating expenses	 	 	100,944 	  	 	 	97,467 	  	 	 	97,778 	  	 	 	103,195 	  	 	 	96,137 	  	

Real estate operating income	 	 	33,947 	  	 	 	35,624 	  	 	 	34,542 	  	 	 	32,428 	  	 	 	36,341 	  	
 	 	 	 	 	 	
Other income (expense):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest expense	 	 	(16,247)	  	 	 	(15,943)	  	 	 	(16,537)	  	 	 	(16,179)	  	 	 	(16,236)	  	
Interest and other income (expense)	 	 	383 	  	 	 	285 	  	 	 	97 	  	 	 	(357)	  	 	 	(91)	  	
Equity in income of unconsolidated joint ventures	 	 	322 	  	 	 	246 	  	 	 	170 	  	 	 	587 	  	 	 	485 	  	
Litigation settlement expense	 	 	(7,500)	  	 	 	-     	  	 	 	-     	  	 	 	-     	  	 	 	-     	  	
Gain / (loss) on extinguishment of debt	 	 	-     	  	 	 	-     	  	 	 	-     	  	 	 	1,039 	  	 	 	-     	  	
 	 	 	 	 	
      Total other income (expense)	 	 	(23,042)	  	 	 	(15,412)	  	 	 	(16,270)	  	 	 	(14,910)	  	 	 	(15,842)	  	

Income from continuing operations	 	 	10,905 	  	 	 	20,212 	  	 	 	18,272 	  	 	 	17,518 	  	 	 	20,499 	  	
 	 	 	 	 	 	
Discontinued operations:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income, excluding impairment loss	 	 	184 	  	 	 	492 	  	 	 	1,129 	  	 	 	5,605 	  	 	 	3,775 	  	
Gain / (loss) on sale of properties	 	 	(254)	  	 	 	10,008 	  	 	 	17,830 	  	 	 	95,901 	  	 	 	26,756 	  	
 	 	 	 	 	
      Income / (loss) from discontinued operations (1)	 	 	(70)	  	 	 	10,500 	  	 	 	18,959 	  	 	 	101,506 	  	 	 	30,531 	  	

Net income	 	 	10,835 	  	 	 	30,712 	  	 	 	37,231 	  	 	 	119,024 	  	 	 	51,030 	  	
 	 	 	 	 	 	
Less: Net income attributable to noncontrolling interest	 	 	(4)	  	 	 	(4)	  	 	 	(4)	  	 	 	(4)	  	 	 	(4)	  	

Net income attributable to Piedmont	 	    $	10,831 	  	 	    $	30,708 	  	 	    $	37,227 	  	 	    $	119,020 	  	 	    $	51,026 	  	

Weighted average common shares outstanding - diluted	 	 	168,929 	  	 	 	172,209 	  	 	 	172,874 	  	 	 	173,036 	  	 	 	173,045 	  	
 	 	 	 	 	 	
Net income per share available to common stockholders - diluted	 	    $	0.06 	  	 	    $	0.18 	  	 	    $	0.22 	  	 	    $	0.69 	  	 	    $	0.29 	  	

 
(1) Reflects operating results for Eastpointe Corporate Center in Issaquah, WA, which was sold on July 1, 2011; 5000 Corporate Court in Holtsville, NY, which was sold on August 31, 2011; 35 West Wacker Drive in Chicago, IL, which was sold on December 15, 2011; Deschutes, Rhein, Rogue, Willamette, and Portland Land Parcels in Beaverton, OR, which were all sold on March 19, 2012; 26200 Enterprise Way in Lake Forest, CA, which was sold on May 31, 2012; and 110 and 112 Hidden Lake Circle in Duncan, SC, which were sold on September 21, 2012.
 
11

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	 	Nine Months Ended	 	
 	 	  9/30/2012  	 	 	  9/30/2011  	 	 	  Change  	 	 	  Change  	 	 	  9/30/2012  	 	 	  9/30/2011  	 	 	  Change  	 	 	  Change  	 	
Revenues:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental income	 	  $	    106,826  	  	 	  $	    104,121  	  	 	  $	    2,705  	  	 	 	2.6% 	  	 	  $	    317,177  	  	 	  $	    306,450  	  	 	  $	    10,727  	  	 	 	3.5% 	  	
Tenant reimbursements	 	 	27,470  	  	 	 	28,234  	  	 	 	(764) 	  	 	 	-2.7% 	  	 	 	81,120  	  	 	 	85,703  	  	 	 	(4,583) 	  	 	 	-5.3% 	  	
Property management fee revenue	 	 	520  	  	 	 	110  	  	 	 	410  	  	 	 	372.7% 	  	 	 	1,719  	  	 	 	1,303  	  	 	 	416  	  	 	 	31.9% 	  	
Other rental income	 	 	75  	  	 	 	13  	  	 	 	62  	  	 	 	476.9% 	  	 	 	287  	  	 	 	4,415  	  	 	 	(4,128) 	  	 	 	-93.5% 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	 	 	134,891  	  	 	 	132,478  	  	 	 	2,413  	  	 	 	1.8% 	  	 	 	400,303  	  	 	 	397,871  	  	 	 	2,432  	  	 	 	0.6% 	  	
 	 	 	 	 	 	 	 	 	
Operating expenses:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property operating costs	 	 	51,645  	  	 	 	50,707  	  	 	 	(938) 	  	 	 	-1.8% 	  	 	 	157,835  	  	 	 	152,207  	  	 	 	(5,628) 	  	 	 	-3.7% 	  	
Depreciation	 	 	28,489  	  	 	 	25,891  	  	 	 	(2,598) 	  	 	 	-10.0% 	  	 	 	83,252  	  	 	 	76,193  	  	 	 	(7,059) 	  	 	 	-9.3% 	  	
Amortization	 	 	15,302  	  	 	 	14,808  	  	 	 	(494) 	  	 	 	-3.3% 	  	 	 	39,474  	  	 	 	39,098  	  	 	 	(376) 	  	 	 	-1.0% 	  	
Impairment loss	 	 	-      	  	 	 	-      	  	 	 	-      	  	 	 	0.0% 	  	 	 	-      	  	 	 	-      	  	 	 	-      	  	 	 	0.0% 	  	
General and administrative	 	 	5,508  	  	 	 	4,731  	  	 	 	(777) 	  	 	 	-16.4% 	  	 	 	15,629  	  	 	 	18,868  	  	 	 	3,239  	  	 	 	17.2% 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses	 	 	100,944  	  	 	 	96,137  	  	 	 	(4,807) 	  	 	 	-5.0% 	  	 	 	296,190  	  	 	 	286,366  	  	 	 	(9,824) 	  	 	 	-3.4% 	  	

Real estate operating income	 	 	33,947  	  	 	 	36,341  	  	 	 	(2,394) 	  	 	 	-6.6% 	  	 	 	104,113  	  	 	 	111,505  	  	 	 	(7,392) 	  	 	 	-6.6% 	  	
 	 	 	 	 	 	 	 	 	
Other income (expense):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest expense	 	 	(16,247) 	  	 	 	(16,236) 	  	 	 	(11) 	  	 	 	-0.1% 	  	 	 	(48,727) 	  	 	 	(49,638) 	  	 	 	911  	  	 	 	1.8% 	  	
Interest and other income (expense)	 	 	383  	  	 	 	(91) 	  	 	 	474  	  	 	 	520.9% 	  	 	 	765  	  	 	 	3,130  	  	 	 	(2,365) 	  	 	 	-75.6% 	  	
Equity in income of unconsolidated joint ventures	 	 	322  	  	 	 	485  	  	 	 	(163) 	  	 	 	-33.6% 	  	 	 	739  	  	 	 	1,032  	  	 	 	(293) 	  	 	 	-28.4% 	  	
Litigation settlement expense	 	 	(7,500) 	  	 	 	-      	  	 	 	(7,500) 	  	 	 	0.0% 	  	 	 	(7,500) 	  	 	 	-      	  	 	 	(7,500) 	  	 	 	0.0% 	  	
Gain / (loss) on consolidation of variable interest entity	 	 	-      	  	 	 	-      	  	 	 	-      	  	 	 	0.0% 	  	 	 	-      	  	 	 	1,532  	  	 	 	(1,532) 	  	 	 	-100.0% 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total other income (expense)	 	 	(23,042) 	  	 	 	(15,842) 	  	 	 	(7,200) 	  	 	 	-45.4% 	  	 	 	(54,723) 	  	 	 	(43,944) 	  	 	 	(10,779) 	  	 	 	-24.5% 	  	

Income from continuing operations	 	 	10,905  	  	 	 	20,499  	  	 	 	(9,594) 	  	 	 	-46.8%	  	 	 	49,390  	  	 	 	67,561  	  	 	 	(18,171) 	  	 	 	-26.9% 	  	
 	 	 	 	 	 	 	 	 	
Discontinued operations:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income, excluding impairment loss	 	 	184  	  	 	 	3,775  	  	 	 	(3,591) 	  	 	 	-95.1% 	  	 	 	1,805  	  	 	 	11,715  	  	 	 	(9,910) 	  	 	 	-84.6% 	  	
Gain / (loss) on sale of properties	 	 	(254) 	  	 	 	26,756  	  	 	 	(27,010) 	  	 	 	-100.9% 	  	 	 	27,583  	  	 	 	26,756  	  	 	 	827  	  	 	 	3.1% 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income / (loss) from discontinued operations (1)	 	 	(70) 	  	 	 	30,531  	  	 	 	(30,601) 	  	 	 	-100.2% 	  	 	 	29,388  	  	 	 	38,471  	  	 	 	(9,083) 	  	 	 	-23.6% 	  	

Net income	 	 	10,835  	  	 	 	51,030  	  	 	 	(40,195) 	  	 	 	-78.8% 	  	 	 	78,778  	  	 	 	106,032  	  	 	 	(27,254) 	  	 	 	-25.7% 	  	
 	 	 	 	 	 	 	 	 	
Less: Net income attributable to noncontrolling interest	 	 	(4) 	  	 	 	(4) 	  	 	 	-      	  	 	 	0.0% 	  	 	 	(12) 	  	 	 	(12) 	  	 	 	-      	  	 	 	0.0% 	  	

Net income attributable to Piedmont	 	  $	    10,831  	  	 	  $	    51,026  	  	 	  $	    (40,195) 	  	 	 	-78.8% 	  	 	  $	    78,766  	  	 	  $	    106,020  	  	 	  $	    (27,254) 	  	 	 	-25.7% 	  	

Weighted average common shares outstanding - diluted	 	 	168,929  	  	 	 	173,045  	  	 	 	 	 	 	 	 	 	 	 	171,295  	  	 	 	172,996  	  	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	
Net income per share available to common stockholders - diluted	 	  $	    0.06  	  	 	  $	    0.29  	  	 	 	 	 	 	 	 	 	 	  $	    0.46  	  	 	  $	    0.61  	  	 	 	 	 	 	 	 	 	

 
(1) Reflects operating results for Eastpointe Corporate Center in Issaquah, WA, which was sold on July 1, 2011; 5000 Corporate Court in Holtsville, NY, which was sold on August 31, 2011; 35 West Wacker Drive in Chicago, IL, which was sold on December 15, 2011; Deschutes, Rhein, Rogue, Willamette, and Portland Land Parcels in Beaverton, OR, which were all sold on March 19, 2012; 26200 Enterprise Way in Lake Forest, CA, which was sold on May 31, 2012; and 110 and 112 Hidden Lake Circle in Duncan, SC, which were sold on September 21, 2012.
 
12

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	  	Nine Months Ended	 	
 	  	    9/30/2012    	 	  	    9/30/2011    	 	  	    9/30/2012    	 	  	    9/30/2011    	 	
Net income attributable to Piedmont	  	  $	10,831  	  	  	  $	51,026  	  	  	  $	78,766  	  	  	  $	106,020  	  	
 	 	 	 	 	
Depreciation (1) (2)	  	 	28,763  	  	  	 	28,102  	  	  	 	84,605  	  	  	 	83,135  	  	
Amortization (1)	  	 	15,366  	  	  	 	16,616  	  	  	 	39,744  	  	  	 	44,601  	  	
Impairment loss (1)	  	 	-      	  	  	 	-      	  	  	 	-      	  	  	 	-      	  	
(Gain) / loss on sale of properties (1)	  	 	254  	  	  	 	(26,826) 	  	  	 	(27,583) 	  	  	 	(26,872) 	  	
(Gain) / loss on consolidation of VIE	  	 	-      	  	  	 	-      	  	  	 	-      	  	  	 	(1,532) 	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Funds from operations	  	 	55,214  	  	  	 	68,918  	  	  	 	175,532  	  	  	 	205,352  	  	
 	 	 	 	 	
Litigation settlement expense	  	 	7,500  	  	  	 	-      	  	  	 	7,500  	  	  	 	-      	  	
Acquisition costs	  	 	7  	  	  	 	285  	  	  	 	88  	  	  	 	975  	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Core funds from operations	  	 	62,721  	  	  	 	69,203  	  	  	 	183,120  	  	  	 	206,327  	  	
 	 	 	 	 	
Depreciation of non real estate assets	  	 	196  	  	  	 	84  	  	  	 	397  	  	  	 	422  	  	
Stock-based and other non-cash compensation expense	  	 	869  	  	  	 	1,111  	  	  	 	1,492  	  	  	 	2,975  	  	
Deferred financing cost amortization (1)	  	 	663  	  	  	 	879  	  	  	 	2,056  	  	  	 	2,546  	  	
Amortization of fair market adjustments on notes payable	  	 	-      	  	  	 	471  	  	  	 	-      	  	  	 	1,413  	  	
Straight-line effects of lease revenue (1)	  	 	(4,193) 	  	  	 	(4,129) 	  	  	 	(11,236) 	  	  	 	(4,488) 	  	
Amortization of lease-related intangibles (1)	  	 	(1,315) 	  	  	 	(1,817) 	  	  	 	(4,631) 	  	  	 	(4,850) 	  	
Income from amortization of discount on purchase of mezzanine loans	  	 	-      	  	  	 	-      	  	  	 	-      	  	  	 	(484) 	  	
Acquisition costs	  	 	(7) 	  	  	 	(285) 	  	  	 	(88) 	  	  	 	(975) 	  	
Non-incremental capital expenditures (3)	  	 	(38,583) 	  	  	 	(14,529) 	  	  	 	(64,430) 	  	  	 	(45,009) 	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Adjusted funds from operations	  	  $	20,351  	  	  	  $	50,988  	  	  	  $	106,680  	  	  	  $	157,877  	  	

Weighted average common shares outstanding - diluted	  	 	168,929  	  	  	 	173,045  	  	  	 	171,295  	  	  	 	172,996  	  	
 	 	 	 	 	
Funds from operations per share (diluted)	  	  $	0.33  	  	  	  $	0.40  	  	  	  $	1.03  	  	  	  $	1.19  	  	
Core funds from operations per share (diluted)	  	  $	0.37  	  	  	  $	0.40  	  	  	  $	1.07  	  	  	  $	1.19  	  	
Adjusted funds from operations per share (diluted)	  	  $	0.12  	  	  	  $	0.29  	  	  	  $	0.62  	  	  	  $	0.91  	  	

 
(1)	Includes adjustments for consolidated properties, including discontinued operations, and for our proportionate ownership in unconsolidated joint ventures.	
 
(2)	Excludes depreciation of non real estate assets.	
 
(3)	Non-incremental capital expenditures are defined on page 36.	
 
13

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	  	Nine Months Ended	 	
 	  	    9/30/2012    	 	  	    9/30/2011    	 	  	    9/30/2012    	 	  	    9/30/2011    	 	
Net income attributable to Piedmont	  	  $	10,831  	  	  	  $	51,026  	  	  	  $	78,766  	  	  	  $	106,020  	  	
 	 	 	 	 	
Net income attributable to noncontrolling interest	  	 	4  	  	  	 	135  	  	  	 	12  	  	  	 	378  	  	
Interest expense	  	 	16,247  	  	  	 	17,804  	  	  	 	48,727  	  	  	 	54,291  	  	
Depreciation (1)	  	 	28,959  	  	  	 	28,186  	  	  	 	85,002  	  	  	 	83,557  	  	
Amortization (1)	  	 	15,366  	  	  	 	16,616  	  	  	 	39,744  	  	  	 	44,601  	  	
Impairment loss (1)	  	 	-      	  	  	 	-      	  	  	 	-      	  	  	 	-      	  	
Litigation settlement expense	  	 	7,500  	  	  	 	-      	  	  	 	7,500  	  	  	 	-      	  	
(Gain) / loss on sale of properties (1)	  	 	254  	  	  	 	(26,826) 	  	  	 	(27,583) 	  	  	 	(26,872) 	  	
(Gain) / loss on consolidation of VIE	  	 	-      	  	  	 	-      	  	  	 	-      	  	  	 	(1,532) 	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Core EBITDA	  	 	79,161  	  	  	 	86,941  	  	  	 	232,168  	  	  	 	260,443  	  	
 	 	 	 	 	
General & administrative expenses (1)	  	 	5,576  	  	  	 	4,747  	  	  	 	15,760  	  	  	 	18,843  	  	
Management fee revenue	  	 	(520) 	  	  	 	(110) 	  	  	 	(1,719) 	  	  	 	(1,303) 	  	
Interest and other income (1)	  	 	(383) 	  	  	 	74  	  	  	 	(785) 	  	  	 	(3,132) 	  	
Lease termination income	  	 	(75) 	  	  	 	33  	  	  	 	(287) 	  	  	 	(4,718) 	  	
Lease termination expense - straight line rent & acquisition intangibles write-offs	  	 	122  	  	  	 	260  	  	  	 	385  	  	  	 	739  	  	
Straight-line effects of lease revenue (1)	  	 	(4,337) 	  	  	 	(4,296) 	  	  	 	(11,643) 	  	  	 	(4,963) 	  	
Net effect of amortization of above/(below) market in-place lease intangibles  (1)	  	 	(1,293) 	  	  	 	(1,911) 	  	  	 	(4,609) 	  	  	 	(5,115) 	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Property net operating income - cash basis	  	 	78,251  	  	  	 	85,738  	  	  	 	229,270  	  	  	 	260,794  	  	
 	 	 	 	 	
Net operating income from:	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Acquisitions (2)	  	 	(3,576) 	  	  	 	(3,393) 	  	  	 	(10,612) 	  	  	 	(6,837) 	  	
Dispositions (3)	  	 	(321) 	  	  	 	(7,699) 	  	  	 	(2,499) 	  	  	 	(23,051) 	  	
Unconsolidated joint ventures	  	 	(735) 	  	  	 	(818) 	  	  	 	(1,923) 	  	  	 	(2,172) 	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Same store NOI - cash basis	  	  $	73,619  	  	  	  $	73,828  	  	  	  $	214,236  	  	  	  $	228,734  	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Change period over period	  	 	-0.3%    	  	  	 	N/A    	  	  	 	-6.3%    	  	  	 	N/A    	  	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Same Store Net Operating Income
Top Seven Markets	  
  	 	 	
  	 	 	  	Three Months Ended	 	  	Nine Months Ended	 	 	  	
  	 	 	  	9/30/2012	 	  	9/30/2011	 	  	9/30/2012	 	  	9/30/2011	 	 	  	
  	 	 	  	$	 	  	%  	 	  	$	 	  	%  	 	  	$	 	  	%  	 	  	$	 	  	%  	 	 	  	
 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	
 	 	Washington, D.C. (4)	  	$	20,233	  	  	 	27.5  	  	  	$	18,068	  	  	 	24.5  	  	  	$	57,277	  	  	 	26.7  	  	  	$	53,820	  	  	 	23.5  	  	 	 	
 	 	New York (5)	  	 	11,143	  	  	 	15.1  	  	  	 	13,758	  	  	 	18.6  	  	  	 	34,573	  	  	 	16.1  	  	  	 	41,438	  	  	 	18.1  	  	 	 	
 	 	Chicago (6)	  	 	11,306	  	  	 	15.4  	  	  	 	14,989	  	  	 	20.3  	  	  	 	30,309	  	  	 	14.2  	  	  	 	40,201	  	  	 	17.6  	  	 	 	
 	 	Minneapolis (7)	  	 	5,439	  	  	 	7.4  	  	  	 	4,456	  	  	 	6.0  	  	  	 	15,711	  	  	 	7.3  	  	  	 	14,435	  	  	 	6.3  	  	 	 	
 	 	Dallas	  	 	3,380	  	  	 	4.6  	  	  	 	3,796	  	  	 	5.1  	  	  	 	10,713	  	  	 	5.0  	  	  	 	11,001	  	  	 	4.8  	  	 	 	
 	 	Los Angeles (8)	  	 	3,701	  	  	 	4.9  	  	  	 	2,490	  	  	 	3.4  	  	  	 	10,109	  	  	 	4.7  	  	  	 	9,947	  	  	 	4.4  	  	 	 	
 	 	Boston	  	 	3,067	  	  	 	4.2  	  	  	 	2,493	  	  	 	3.4  	  	  	 	8,306	  	  	 	3.9  	  	  	 	8,965	  	  	 	3.9  	  	 	 	
 	 	Other (9)	  	 	15,350	  	  	 	20.9  	  	  	 	13,778	  	  	 	18.7  	  	  	 	47,238	  	  	 	22.1  	  	  	 	48,927	  	  	 	21.4  	  	 	 	
 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	
 	 	Total	  	  $	        73,619	  	  	 	100.0  	  	  	  $	        73,828	  	  	 	100.0  	  	  	  $	        214,236	  	  	 	100.0  	  	  	  $	        228,734	  	  	 	100.0  	  	 	 	
 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	
(1) Includes amounts attributable to consolidated properties, including discontinued operations, and our proportionate share of amounts attributable to unconsolidated joint ventures.
(2) Acquisitions consist of 1200 Enclave Parkway in Houston, TX, purchased on March 30, 2011; 500 West Monroe Street in Chicago, IL, acquired on March 31, 2011; The Dupree in Atlanta, GA, purchased on April 29, 2011; The Medici in Atlanta, GA, purchased on June 7, 2011; 225 and 235 Presidential Way in Woburn, MA, purchased on September 13, 2011; 400 TownPark in Lake Mary, FL purchased on November 10, 2011; and Gavitello Land in Atlanta, GA, purchased on June 28, 2012.
(3) Dispositions consist of Eastpointe Corporate Center in Issaquah, WA, sold on July 1, 2011; 5000 Corporate Court in Holtsville, NY, sold on August 31, 2011; 35 West Wacker Drive in Chicago, IL, sold on December 15, 2011; Deschutes, Rhein, Rogue, Willamette, and Portland Land Parcels in Beaverton, OR, sold on March 19, 2012; 26200 Enterprise Way in Lake Forest, CA, sold on May 31, 2012; and 110 and 112 Hidden Lake Circle in Duncan, SC, sold on September 21, 2012.
(4) The increase in Washington, D.C. Same Store Net Operating Income for the three months and the nine months ended September 30, 2012 as compared to the same periods in 2011 was primarily attributable to two factors: 1) an increase in revenue due to a rental rate increase associated with the 21-month lease extension of the Comptroller of the Currency at One Independence Square in Washington, D.C., and 2) increased rental revenue as a result of the commencement of several new leases at Piedmont Pointe I and II in Bethesda, MD.
(5) The decrease in New York Same Store Net Operating Income for the three months and the nine months ended September 30, 2012 as compared to the same periods in 2011 was primarily related to the lease expirations of and the downtime and rental abatements associated with newly signed leases to backfill the spaces formerly occupied by sanofi-aventis at 200 & 400 Bridgewater Crossing in Bridgewater, NJ.
(6) The decrease in Chicago Same Store Net Operating Income for the three months and the nine months ended September 30, 2012 as compared to the same periods in 2011 was primarily related to the expiration of the Zurich American Insurance Company lease at Windy Point II in Schaumburg, IL in August 2011 and subsequent downtime before the commencement of the Catamaran lease in the first quarter of 2013, as well as the expiration of the Kirkland & Ellis lease at Aon Center in Chicago, IL in December 2011 and subsequent downtime before the commencement of the KPMG lease in August 2012. The loss of the Zurich and Kirkland & Ellis leases reduced revenues by approximately $4.3 million and $14.7 million, respectively, for the three months and the nine months ended September 30, 2012; these amounts are offset partially by incremental operating expense savings due to the vacancy of those tenants.
(7) The increase in Minneapolis Same Store Net Operating Income for the three months ended September 30, 2012 as compared to the same period in 2011 was primarily related to rent commencement in December 2011 for the US Bank leases at One Meridian Crossings and Two Meridian Crossings in Richfield, MN. The increase in Minneapolis Same Store Net Operating Income for the nine months ended September 30, 2012 as compared to the same period in 2011 was primarily related to the item described above, offset somewhat by the net loss of approximately 76,000 leased square feet associated with the December 2011 expiration of the HSBC Card Services lease at Crescent Ridge II in Minnetonka, MN.
(8) The increase in Los Angeles Same Store Net Operating Income for the three months ended September 30, 2012 as compared to the same period in 2011 was primarily related to increased rental revenue associated with several new leases at 1901 Main Street in Irvine, CA, 1055 East Colorado Boulevard in Pasadena, CA, and Fairway Center II in Brea, CA, in addition to contractual rental rate increases at 800 North Brand Boulevard in Glendale, CA.
(9) The increase in Other Same Store Net Operating Income for the three months ended September 30, 2012 as compared to the same period in 2011 was primarily related to rent commencements associated with a new lease with Grand Canyon Education at Desert Canyon 300 in Phoenix, AZ and a new lease with Chrysler Group, LLC at 1075 West Entrance Drive in Auburn Hills, MI. The decrease in Other Same Store Net Operating Income for the nine months ended September 30, 2012 as compared to the same period in 2011 was primarily attributable to: 1) a rental abatement concession associated with a new lease with Grand Canyon Education at Desert Canyon 300 in Phoenix, AZ, 2) a decrease in rental revenue associated with a lower lease renewal rental rate at 5601 Headquarters Drive in Plano, TX, and 3) a decrease in rental revenue associated with lease expirations in 2011 and rental abatement concessions related to new leasing at Las Colinas Corporate Center II in Irving, TX.
 
14

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

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	  	Nine Months Ended	 	
 	  	    9/30/2012    	 	  	    9/30/2011    	 	  	    9/30/2012    	 	  	    9/30/2011    	 	
Net income attributable to Piedmont	  	   $	 10,831  	  	  	   $	 51,026  	  	  	   $	 78,766  	  	  	   $	 106,020  	  	
 	 	 	 	 	
Net income attributable to noncontrolling interest	  	 	4  	  	  	 	135  	  	  	 	12  	  	  	 	378  	  	
Interest expense	  	 	16,247  	  	  	 	17,804  	  	  	 	48,727  	  	  	 	54,291  	  	
Depreciation (1)	  	 	28,959  	  	  	 	28,186  	  	  	 	85,002  	  	  	 	83,557  	  	
Amortization (1)	  	 	15,366  	  	  	 	16,616  	  	  	 	39,744  	  	  	 	44,601  	  	
Impairment loss (1)	  	 	-      	  	  	 	-      	  	  	 	-      	  	  	 	-      	  	
Litigation settlement expense	  	 	7,500  	  	  	 	-      	  	  	 	7,500  	  	  	 	-      	  	
(Gain) / loss on sale of properties (1)	  	 	254  	  	  	 	(26,826) 	  	  	 	(27,583) 	  	  	 	(26,872) 	  	
(Gain) / loss on consolidation of VIE	  	 	-      	  	  	 	-      	  	  	 	-      	  	  	 	(1,532) 	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Core EBITDA	  	 	79,161  	  	  	 	86,941  	  	  	 	232,168  	  	  	 	260,443  	  	
 	 	 	 	 	
General & administrative expenses (1)	  	 	5,576  	  	  	 	4,747  	  	  	 	15,760  	  	  	 	18,843  	  	
Management fee revenue	  	 	(520) 	  	  	 	(110) 	  	  	 	(1,719) 	  	  	 	(1,303) 	  	
Interest and other income (1)	  	 	(383) 	  	  	 	74  	  	  	 	(785) 	  	  	 	(3,132) 	  	
Lease termination income	  	 	(75) 	  	  	 	33  	  	  	 	(287) 	  	  	 	(4,718) 	  	
Lease termination expense - straight line rent & acquisition intangibles write-offs	  	 	122  	  	  	 	260  	  	  	 	385  	  	  	 	739  	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Property net operating income - accrual basis	  	 	83,881  	  	  	 	91,945  	  	  	 	245,522  	  	  	 	270,872  	  	
 	 	 	 	 	
Net operating income from:	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Acquisitions (2)	  	 	(4,822) 	  	  	 	(3,595) 	  	  	 	(14,131) 	  	  	 	(7,185) 	  	
Dispositions (3)	  	 	(404) 	  	  	 	(9,102) 	  	  	 	(2,844) 	  	  	 	(27,576) 	  	
Unconsolidated joint ventures	  	 	(700) 	  	  	 	(772) 	  	  	 	(1,827) 	  	  	 	(2,041) 	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Same store NOI - accrual basis	  	   $	77,955  	  	  	   $	78,476  	  	  	   $	226,720  	  	  	   $	234,070  	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Change period over period	  	 	-0.7%  	  	  	 	N/A  	  	  	 	-3.1%  	  	  	 	N/A  	  	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Same Store Net Operating Income
Top Seven Markets	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	
  	 	 	  	Three Months Ended	 	  	Nine Months Ended	 	 	  	
  	 	 	  	9/30/2012	 	  	9/30/2011	 	  	9/30/2012	 	  	9/30/2011	 	 	  	
  	 	 	  	$	 	  	%  	 	  	$	 	  	%  	 	  	$	 	  	%  	 	  	$	 	  	%  	 	 	  	
 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	
 	 	Washington, D.C. (4)	  	    $	21,130	  	  	 	27.1  	  	  	  $	18,987	  	  	 	24.2  	  	  	  $	61,022	  	  	 	26.9  	  	  	  $	55,287	  	  	 	23.6  	  	 	 	
 	 	New York (5)	  	 	11,446	  	  	 	14.7  	  	  	 	13,273	  	  	 	16.9  	  	  	 	36,035	  	  	 	15.9  	  	  	 	40,592	  	  	 	17.3  	  	 	 	
 	 	Chicago (6)	  	 	11,651	  	  	 	14.9  	  	  	 	14,644	  	  	 	18.7  	  	  	 	29,958	  	  	 	13.2  	  	  	 	39,049	  	  	 	16.7  	  	 	 	
 	 	Minneapolis (7)	  	 	5,639	  	  	 	7.2  	  	  	 	5,546	  	  	 	7.0  	  	  	 	16,528	  	  	 	7.3  	  	  	 	17,466	  	  	 	7.5  	  	 	 	
 	 	Dallas	  	 	3,854	  	  	 	4.9  	  	  	 	3,730	  	  	 	4.8  	  	  	 	11,664	  	  	 	5.1  	  	  	 	11,366	  	  	 	4.9  	  	 	 	
 	 	Los Angeles (8)	  	 	3,330	  	  	 	4.3  	  	  	 	2,406	  	  	 	3.1  	  	  	 	9,766	  	  	 	4.3  	  	  	 	9,514	  	  	 	4.1  	  	 	 	
 	 	Boston	  	 	3,347	  	  	 	4.4  	  	  	 	2,843	  	  	 	3.6  	  	  	 	9,204	  	  	 	4.1  	  	  	 	9,199	  	  	 	3.9  	  	 	 	
 	 	Other (9)	  	 	17,558	  	  	 	22.5  	  	  	 	17,047	  	  	 	21.7  	  	  	 	52,543	  	  	 	23.2  	  	  	 	51,597	  	  	 	22.0  	  	 	 	
 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	
 	 	      Total	  	    $	        77,955	  	  	 	100.0  	  	  	  $	    78,476	  	  	 	100.0  	  	  	  $	    226,720	  	  	 	100.0  	  	  	  $	    234,070	  	  	 	100.0  	  	 	 	
 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	
(1) Includes amounts attributable to consolidated properties, including discontinued operations, and our proportionate share of amounts attributable to unconsolidated joint ventures.
(2) Acquisitions consist of 1200 Enclave Parkway in Houston, TX, purchased on March 30, 2011; 500 West Monroe Street in Chicago, IL, acquired on March 31, 2011; The Dupree in Atlanta, GA, purchased on April 29, 2011; The Medici in Atlanta, GA, purchased on June 7, 2011; 225 and 235 Presidential Way in Woburn, MA, purchased on September 13, 2011; 400 TownPark in Lake Mary, FL purchased on November 10, 2011; and Gavitello Land in Atlanta, GA, purchased on June 28, 2012.
(3) Dispositions consist of Eastpointe Corporate Center in Issaquah, WA, sold on July 1, 2011; 5000 Corporate Court in Holtsville, NY, sold on August 31, 2011; 35 West Wacker Drive in Chicago, IL, sold on December 15, 2011; Deschutes, Rhein, Rogue, Willamette, and Portland Land Parcels in Beaverton, OR, sold on March 19, 2012; 26200 Enterprise Way in Lake Forest, CA, sold on May 31, 2012; and 110 and 112 Hidden Lake Circle in Duncan, SC, sold on September 21, 2012.
(4) The increase in Washington, D.C. Same Store Net Operating Income for the three months and the nine months ended September 30, 2012 as compared to the same periods in 2011 was primarily attributable to two factors: 1) an increase in revenue due to a rental rate increase associated with the 21-month lease extension of the Comptroller of the Currency at One Independence Square in Washington, D.C., and 2) increased rental revenue as a result of the commencement of several new leases at Piedmont Pointe I and II in Bethesda, MD.
(5) The decrease in New York Same Store Net Operating Income for the three months and the nine months ended September 30, 2012 as compared to the same periods in 2011 was primarily related to the expiration of the sanofi-aventis lease, resulting in a net decrease in leased square footage of 79,000 square feet, and the downtime associated with newly signed leases to backfill the space formerly occupied by sanofi-aventis at 200 Bridgewater Crossing in Bridgewater, NJ.
(6) The decrease in Chicago Same Store Net Operating Income for the three months and the nine months ended September 30, 2012 as compared to the same periods in 2011 was primarily related to the expiration of the Zurich American Insurance Company lease at Windy Point II in Schaumburg, IL in August 2011 and subsequent downtime before the commencement of the Catamaran lease in the first quarter of 2013, as well as the expiration of the Kirkland & Ellis lease at Aon Center in Chicago, IL in December 2011 and subsequent downtime before the commencement of the KPMG lease in August 2012. The loss of the Zurich and Kirkland & Ellis leases reduced revenues by approximately $4.1 million and $14.1 million, respectively, for the three months and the nine months ended September 30, 2012; these amounts are offset partially by incremental operating expense savings due to the vacancy of those tenants.
(7) The decrease in Minneapolis Same Store Net Operating Income for the nine months ended September 30, 2012 as compared to the same period in 2011 was primarily related to the net loss of approximately 76,000 leased square feet associated with the December 2011 expiration of the HSBC Card Services lease at Crescent Ridge II in Minnetonka, MN.
(8) The increase in Los Angeles Same Store Net Operating Income for the three months ended September 30, 2012 as compared to the same period in 2011 was primarily related to the commencement of several new leases at 1901 Main Street in Irvine, CA and Fairway Center II in Brea, CA.
(9) The increase in Other Same Store Net Operating Income for the nine months ended September 30, 2012 as compared to the same period in 2011 was primarily related to an increase in rental revenue due to the commencement of several new leases at Glenridge Highlands II in Atlanta, GA.
 
15

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

 
 	 	 	 	 	 	 	 	 	
 	  	As of
    September 30, 2012    	 	  	As of
    December 31, 2011    	 	
 
Common stock price (1)	  	 	$17.34	  	  	 	$17.04	  	
 
Total shares outstanding	  	 	168,044	  	  	 	172,630	  	
 
Equity market capitalization (1)	  	 	$2,913,889	  	  	 	$2,941,611	  	
 
Total debt - principal amount outstanding	  	 	$1,436,025	  	  	 	$1,472,525	  	
 
Total market capitalization (1)	  	 	$4,349,914	  	  	 	$4,414,136	  	
 
Total debt / Total market capitalization	  	 	33.0%	  	  	 	33.4%	  	
 
Total gross real estate assets	  	 	$4,550,183	  	  	 	$4,615,812	  	
 
Total debt / Total gross real estate assets (2)	  	 	31.6%	  	  	 	31.9%	  	
 
Total debt / Total gross assets (3)	  	 	27.5%	  	  	 	27.5%	  	

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

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

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

Floating Rate	  	$148,500(2)	 	1.40%	 	58.7 months	  	 	
Fixed Rate	  	1,287,525	 	4.59%	 	35.3 months	  	 	
 	  	 	
Total	  	$1,436,025	 	4.26%	 	37.7 months	  	 	

 	  	 	 	 	 	 	  	 	

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

Unsecured	  	$448,500	 	2.26%(3)	 	52.7 months	  	 	
Secured	  	987,525	 	5.17%	 	30.9 months	  	 	
 	  	 	
Total	  	$1,436,025	 	4.26%	 	37.7 months	  	 	

 	  	 	 	 	 	 	  	 	

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

2012	  	$0	  	 	  	$0	 	 	  	N/A	 	0.0%	 	 	
2013	  	0	  	 	  	0	 	 	  	N/A	 	0.0%	 	 	
2014	  	575,000	  	 	  	0	 	 	  	4.89%	 	40.0%	 	 	
2015	  	105,000	  	 	  	0	 	 	  	5.29%	 	7.3%	 	 	
2016	  	167,525	  	 	  	300,000	 	 	  	3.71%	 	32.6%	 	 	
2017	  	140,000	  	 	  	148,500(4)	 	 	  	3.51%	 	20.1%	 	 	
 	 	 	
Total	  	$987,525	  	 	  	$448,500	 	 	  	4.26%	 	100.0%	 	 	
 	 	 	
(1) All of Piedmont's outstanding debt as of September 30, 2012 was interest-only debt.
(2) Amount represents the outstanding balance as of September 30, 2012, on the $500 million unsecured revolving credit facility.
(3) The weighted average interest rate is a weighted average rate for amounts outstanding under our $500 million unsecured revolving credit facility and our $300 million unsecured term loan. The $300 million unsecured term loan has a stated variable rate; however, Piedmont entered into interest rate swap agreements which effectively fix the interest rate on this loan at 2.69% through its maturity date of November 22, 2016, assuming no credit rating change for the Company.
(4) The initial maturity date of the $500 million unsecured revolving credit facility is August 19, 2016; however, there are two, six-month extension options available under the facility providing for a final extended maturity date of August 21, 2017. For the purposes of this schedule, we reflect the maturity date of the facility as the final extended maturity date of August 2017.
 
17

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

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

Secured	 	 	  	 	 	 	 	 	 	 	 	 	
$200.0 Million Fixed-Rate Loan	 	Aon Center	  	4.87%	 	 	5/1/2014	  	 	 	$200,000	  	
$25.0 Million Fixed-Rate Loan	 	Aon Center	  	5.70%	 	 	5/1/2014	  	 	 	25,000	  	
$350.0 Million Secured Pooled Facility	 	Nine Property Collateralized Pool (2)	  	4.84%	 	 	6/7/2014	  	 	 	350,000	  	
$105.0 Million Fixed-Rate Loan	 	US Bancorp Center	  	5.29%	 	 	5/11/2015	  	 	 	105,000	  	
$125.0 Million Fixed-Rate Loan	 	Four Property Collateralized Pool (3)	  	5.50%	 	 	4/1/2016	  	 	 	125,000	  	
$42.5 Million Fixed-Rate Loan	 	Las Colinas Corporate Center I & II	  	5.70%	 	 	10/11/2016	  	 	 	42,525	  	
$140.0 Million WDC Fixed-Rate Loans	 	1201 & 1225 Eye Street	  	5.76%	 	 	11/1/2017	  	 	 	140,000	  	

Subtotal / Weighted Average (4)	 	 	  	5.17%	 	 	 	 	 	 	$987,525	  	
 	 	 	 	 	
Unsecured	 	 	  	 	 	 	 	 	 	 	 	 	
$500.0 Million Unsecured Facility (5)	 	N/A	  	   1.40%(6)	 	 	8/21/2017	  	 	 	$148,500	  	
$300.0 Million Unsecured Term Loan	 	N/A	  	   2.69%(7)	 	 	11/22/2016	  	 	 	300,000	  	

Subtotal / Weighted Average (4)	 	 	  	2.26%	 	 	 	 	 	 	$448,500	  	

Total Debt - Principal Amount Outstanding / Weighted Average Stated Rate (4)	  	4.26%	 	 	 	 	 	 	$1,436,025	  	
 	 	
(1) All of Piedmont’s outstanding debt as of September 30, 2012, was interest-only debt.
(2) The nine property collateralized pool includes 1200 Crown Colony Drive, Braker Pointe III, 2 Gatehall Drive, One and Two Independence Square, 2120 West End Avenue, 200 and 400 Bridgewater Crossing, and Fairway Center II.
(3) The four property collateralized pool includes 1430 Enclave Parkway, Windy Point I and II, and 1055 East Colorado Boulevard.
(4) Weighted average is based on the total balance outstanding and interest rate at September 30, 2012.
(5) All of Piedmont’s outstanding debt as of September 30, 2012, was term debt with the exception of $148.5 million outstanding on our unsecured revolving credit facility. On August 21, 2012, Piedmont closed on a new $500 million unsecured revolving credit facility that replaced the previous facility that was set to expire on August 30, 2012. The new facility has an initial maturity date of August 19, 2016 and has two six-month extension options for a total extension of up to one year to August 21, 2017. The final extended maturity date is presented on this schedule.
(6) The interest rate on the $500 million unsecured revolving credit facility is equal to the weighted average interest rate on all outstanding draws as of September 30, 2012. Piedmont may select from multiple interest rate options with each draw under this facility, including the prime rate and various length LIBOR locks. All LIBOR selections are subject to an additional spread (1.175% as of September 30, 2012) over the selected rate based on Piedmont’s current credit rating.
(7) The $300 million unsecured term loan has a stated variable rate; however, Piedmont entered into interest rate swap agreements which effectively fix the interest rate on this loan at 2.69% through its maturity date of November 22, 2016, assuming no credit rating change for the Company.
 
18

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

 
 	 	 	 	 	 	 	 	 	
Debt Covenant Compliance (1)	  	        Required         	 	  	        Actual         	 	
 
Maximum Leverage Ratio	  	 	0.60	  	  	 	0.28	  	
 
Minimum Fixed Charge Coverage Ratio (2)	  	 	1.50	  	  	 	4.54	  	
 
Maximum Secured Indebtedness Ratio	  	 	0.40	  	  	 	0.19	  	
 
Minimum Unencumbered Leverage Ratio	  	 	1.60	  	  	 	5.90	  	
 
Minimum Unencumbered Interest Coverage Ratio(3)	  	 	1.75	  	  	 	17.50	  	
(1) Debt covenant compliance calculations relate to specific calculations detailed in our line of credit agreement.
 
(2) Defined as EBITDA for the trailing four quarters (including the company's share of EBITDA from unconsolidated interests), less one-time or non-recurring gains or losses, less a $0.15 per square foot capital reserve, and excluding the impact of straight line rent leveling adjustments and amortization of intangibles divided by the company's share of fixed charges, as more particularly described in the credit agreements. This definition of fixed charge coverage ratio as prescribed by our credit agreements is different from the fixed charge coverage ratio definition employed elsewhere within this report.
 
(3) Defined as net operating income for the trailing four quarters for unencumbered assets (including the company's share of net operating income from unconsolidated interests that are unencumbered) less a $0.15 per square foot capital reserve divided by the company's share of interest expense associated with unsecured financings only, as more particularly described in the credit agreements.	  

 	 	

Other Debt Coverage Ratios	  	Three months ended
September 30, 2012	  	Nine months ended
September 30, 2012	  	Year ended
December 31, 2011        	
 
Net debt to core EBITDA	  	4.4 x	  	4.5 x	  	3.9 x	
 
Fixed charge coverage ratio (4)	  	4.9 x	  	4.8 x	  	4.8 x	
 
Interest coverage ratio(5)	  	4.9 x	  	4.8 x	  	4.8 x	
 
(4) Fixed charge coverage is calculated as Core EBITDA divided by the sum of interest expense, principal amortization, capitalized interest and preferred dividends. We had no capitalized interest, principal amortization or preferred dividends during the periods ended September 30, 2012 and December 31, 2011.
 
(5) Interest coverage ratio is calculated as Core EBITDA divided by the sum of interest expense and capitalized interest. We had no capitalized interest during the periods ended September 30, 2012 and December 31, 2011.	
 
19

Piedmont Office Realty Trust, Inc.
Tenant Diversification (1)
As of September 30, 2012
(in thousands except for number of properties)

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
  	 	Credit Rating (2)	 	Number of
Properties	 	Lease
Expiration(s) (3)	 	Annualized Lease
Revenue	 	Percentage of
Annualized Lease
Revenue (%)	 	Leased Square
Footage	 	Percentage of
Leased Square
Footage (%)	
U.S. Government	 	AA+ / Aaa	 	9	 	(4)	 	$73,107	 	13.3	 	1,586	 	8.9	
BP(5)	 	A / A2	 	1	 	2013	 	31,749	 	5.8	 	776	 	4.3	
US Bancorp	 	A+ / Aa3	 	3	 	2014 / 2023(6)	 	27,705	 	5.0	 	973	 	5.5	
State of New York	 	AA / Aa2	 	1	 	2019	 	19,963	 	3.6	 	481	 	2.7	
GE	 	AA+ / Aa3	 	2	 	2027	 	14,820	 	2.7	 	447	 	2.5	
Independence Blue Cross	 	No rating available	 	1	 	2023	 	14,267	 	2.6	 	761	 	4.3	
Nestle	 	AA / Aa2	 	1	 	2015	 	14,205	 	2.6	 	392	 	2.2	
Shaw	 	BBB- / Ba1	 	1	 	2018	 	9,836	 	1.8	 	313	 	1.8	
City of New York	 	AA / Aa2	 	1	 	2020	 	9,545	 	1.7	 	313	 	1.7	
Lockheed Martin	 	A- / Baa1	 	3	 	2014	 	9,320	 	1.7	 	283	 	1.6	
KPMG	 	No rating available	 	2	 	2027	 	8,949	 	1.6	 	279	 	1.6	
Gallagher	 	No rating available	 	1	 	2018	 	8,013	 	1.5	 	307	 	1.7	
DDB Needham	 	BBB+ / Baa1	 	1	 	2018	 	7,625	 	1.4	 	214	 	1.2	
Gemini	 	A+ / A2	 	1	 	2021	 	7,304	 	1.3	 	205	 	1.1	
Caterpillar Financial	 	A / A2	 	1	 	2022	 	7,275	 	1.3	 	312	 	1.7	
Harvard University	 	AAA / Aaa	 	2	 	2017	 	6,652	 	1.2	 	105	 	0.6	
Raytheon	 	A- / A3	 	2	 	2019	 	6,555	 	1.2	 	440	 	2.5	
Catamaran	 	BB / Ba2	 	1	 	2024	 	6,530	 	1.2	 	301	 	1.7	
KeyBank	 	A- / A3	 	2	 	2016	 	6,383	 	1.2	 	210	 	1.2	
Harcourt	 	BBB+	 	1	 	2016	 	6,254	 	1.1	 	195	 	1.1	
Edelman	 	No rating available	 	1	 	2024	 	6,094	 	1.1	 	178	 	1.0	
Qwest Communications	 	BB / Baa3	 	1	 	2014	 	5,785	 	1.1	 	161	 	0.9	
Jones Lang LaSalle	 	BBB- / Baa2	 	1	 	2017	 	5,777	 	1.1	 	165	 	0.9	
First Data Corporation	 	B / B3	 	1	 	2020	 	5,691	 	1.0	 	195	 	1.1	
Other	 	 	 	 	 	Various	 	230,565	 	41.9	 	8,238	 	46.2	
Total	 	 	 	 	 	 	 	$549,969	 	100.0	 	17,830	 	100.0	

(1) This schedule presents all tenants contributing 1.0% or more to Annualized Lease Revenue.
(2) Credit rating may reflect the credit rating of the parent or a guarantor. When available, both the Standard & Poor's credit rating and the Moody's credit rating are provided.
(3) Unless otherwise indicated, Lease Expiration represents the expiration year of the majority of the square footage leased by the tenant.
(4) There are several leases with several different agencies of the U.S. Government with expiration years ranging from 2012 to 2027.
(5) Majority of the space is subleased to Aon Corporation. Approximately 88% of the space currently leased by BP has been re-leased under long-term leases for the period following the BP lease expiration.
(6) US Bank's lease at One & Two Meridian Crossings, representing approximately 337,000 square feet and $8.9 million of Annualized Lease Revenue, expires in 2023. US Bancorp's lease at US Bancorp Center for approximately 635,000 square feet, representing $18.8 million of Annualized Lease Revenue, expires in 2014.
 
20

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

 
 	 	 	 	 	 	 	 	 	
 Tenant Credit Rating (1)	  	Annualized Lease
Revenue ($’s in
thousands)	 	  	Percentage of
Annualized Lease
Revenue (%)	  	  	
    AAA / Aaa	  	 	$79,723	  	  	14.5	  	 	
    AA / Aa	  	 	108,171	  	  	19.7	  	 	
    A / A	  	 	108,017	  	  	19.6	  	 	
    BBB / Baa	  	 	69,479	  	  	12.6	  	 	
    BB / Ba	  	 	22,284	  	  	4.1	  	 	
    B / B	  	 	19,638	  	  	3.6	  	 	
    Below	  	 	1,248	  	  	0.2	  	 	
    Not rated (2)	  	 	141,409	  	  	25.7	  	 	
 	  	 	 	 	  	 	  	 	
    Total	  	 	$549,969	  	  	100.0	  	 	

Lease Distribution
As of September 30, 2012

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

2,500 or Less	  	195	  	35.5	  	 	$17,004	  	  	3.1	  	 	163	  	  	0.9	
2,501 - 10,000	  	140	  	25.5	  	 	24,668	  	  	4.5	  	 	744	  	  	4.2	
10,001 - 20,000	  	66	  	12.0	  	 	28,366	  	  	5.2	  	 	955	  	  	5.4	
20,001 - 40,000	  	63	  	11.5	  	 	56,924	  	  	10.3	  	 	1,843	  	  	10.3	
40,001 - 100,000	  	33	  	6.0	  	 	59,039	  	  	10.7	  	 	1,938	  	  	10.9	
Greater than 100,000	  	52	  	9.5	  	 	363,968	  	  	66.2	  	 	12,187	  	  	68.3	
 	
Total	  	549	  	100.0	  	 	$549,969	  	  	100.0	  	 	17,830	  	  	100.0	

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

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

  	 	  	  	Three Months Ended September 30, 2012	 	  	  	  	Three Months Ended September 30, 2011	 	 	  	
 	 	 	  	 	 	 	  	 	  	 	 	 	 	 	
  	 	 	  	Leased Square
Footage	 	 	Rentable Square
Footage	 	 	Percent
Leased  (1)	 	  	 	  	Leased Square
Footage	 	 	Rentable Square
Footage	 	 	Percent
Leased  (1)	 	 	  	
 	 	 	  	 	 	 	  	 	  	 	 	 	 	 	
 	 	As of June 30, 20xx	  	 	17,418	  	 	 	20,482	  	 	 	85.0%	  	  	 	  	 	18,861	  	 	 	21,817	  	 	 	86.5%	  	 	 	
 	 	New leases	  	 	806	  	 	 	 	 	 	 	 	 	  	 	  	 	770	  	 	 	 	 	 	 	 	 	 	 	
 	 	Expired leases	  	 	(400	) 	 	 	 	 	 	 	 	 	  	 	  	 	(924	) 	 	 	 	 	 	 	 	 	 	 	
 	 	Other	  	 	6	  	 	 	6	  	 	 	 	 	  	 	  	 	4	  	 	 	2	  	 	 	 	 	 	 	
 	 	 	  	 	 	 	  	 	  	 	 	 	 	 	
 	 	Subtotal	  	 	17,830	  	 	 	20,488	  	 	 	87.0%	  	  	 	  	 	18,711	  	 	 	21,819	  	 	 	85.8%	  	 	 	
 	 	Acquisitions during period	  	 	-    	  	 	 	-    	  	 	 	 	 	  	 	  	 	440	  	 	 	440	  	 	 	 	 	 	 	
 	 	Dispositions during period	  	 	-    	  	 	 	-    	  	 	 	 	 	  	 	  	 	(282	) 	 	 	(420	) 	 	 	 	 	 	 	
 	 	As of September 30, 20xx (2) (3)	  	 	17,830	  	 	 	20,488	  	 	 	87.0%	  	  	 	  	 	18,869	  	 	 	21,839	  	 	 	86.4%	  	 	 	

 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	
  	 	  	  	Nine Months Ended September 30, 2012	 	  	  	  	Nine Months Ended September 30, 2011	 	 	  	
 	 	 	  	 	 	 	  	 	  	 	 	 	 	 	
  	 	 	  	Leased Square
Footage	 	 	Rentable Square
Footage	 	 	Percent
Leased  (1)	 	  	 	  	Leased Square
Footage	 	 	Rentable Square
Footage	 	 	Percent
Leased  (1)	 	 	  	
 	 	 	  	 	 	 	  	 	  	 	 	 	 	 	
 	 	As of December 31, 20xx	  	 	18,124	  	 	 	20,942	  	 	 	86.5%	  	  	 	  	 	18,214	  	 	 	20,408	  	 	 	89.2%	  	 	 	
 	 	New leases	  	 	1,790	  	 	 	 	 	 	 	 	 	  	 	  	 	2,584	  	 	 	 	 	 	 	 	 	 	 	
 	 	Expired leases	  	 	(1,623	) 	 	 	 	 	 	 	 	 	  	 	  	 	(2,903	) 	 	 	 	 	 	 	 	 	 	 	
 	 	Other	  	 	9	  	 	 	16	  	 	 	 	 	  	 	  	 	1	  	 	 	9	  	 	 	 	 	 	 	
 	 	 	  	 	 	 	  	 	  	 	 	 	 	 	
 	 	Subtotal	  	 	18,300	  	 	 	20,958	  	 	 	87.3%	  	  	 	  	 	17,896	  	 	 	20,417	  	 	 	87.7%	  	 	 	
 	 	Acquisitions during period	  	 	-    	  	 	 	-    	  	 	 	 	 	  	 	  	 	1,255	  	 	 	1,842	  	 	 	 	 	 	 	
 	 	Dispositions during period	  	 	(470	) 	 	 	(470	) 	 	 	 	 	  	 	  	 	(282	) 	 	 	(420	) 	 	 	 	 	 	 	
 	 	As of September 30, 20xx (2) (3)	  	 	17,830	  	 	 	20,488	  	 	 	87.0%	  	  	 	  	 	18,869	  	 	 	21,839	  	 	 	86.4%	  	 	 	

 	 	 	 	 	 	 	 	 	 	
 	 	Stabilized Portfolio Analysis	  	 	 	 	 	 	 	 	 	 	 	 	  	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Less value-add properties (4)	  	 	(665	) 	 	 	(1,433	) 	 	 	46.4%	  	  	 	  	 	(718	) 	 	 	(1,406	) 	 	 	51.1%	  	 	 	
 	 	Stabilized Total (2) (3)	  	 	17,165	  	 	 	19,055	  	 	 	90.1%	  	  	 	  	 	18,151	  	 	 	20,433	  	 	 	88.8%	  	 	 	

 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	
 	 	Same Store Analysis	  	 	 	 	 	 	 	 	 	 	 	 	  	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Less acquisitions/dispositions after September 30, 2011 (4) (5)	  	 	(60	) 	 	 	(176	) 	 	 	34.1%	  	  	 	  	 	(1,548	) 	 	 	(1,549	) 	 	 	99.9%	  	 	 	
 	 	Same Store Total (2) (3) (6)	  	 	17,770	  	 	 	20,312	  	 	 	87.5%	  	  	 	  	 	17,321	  	 	 	20,290	  	 	 	85.4%	  	 	 	
 	 	 	  	 	 	 	  	 	  	 	 	 	 	 	
 	 	Same Store Stabilized Analysis	  	 	 	 	 	 	 	 	 	 	 	 	  	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Less value-add same store properties (4)	  	 	(753	) 	 	 	(1,407	) 	 	 	53.5%	  	  	 	  	 	(718	) 	 	 	(1,406	) 	 	 	51.1%	  	 	 	
 	 	Same Store Stabilized Total (2) (3)	  	 	17,017	  	 	 	18,905	  	 	 	90.0%	  	  	 	  	 	16,603	  	 	 	18,884	  	 	 	87.9%	  	 	 	

 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	
(1) Calculated as leased square footage as of period end with the addition of square footage associated with uncommenced leases for spaces vacant as of period end, divided by total rentable square footage as of period end, expressed as a percentage.
(2) The square footage associated with leases with end of period expiration dates is included in the end of the period leased square footage.
(3) End of period leased square footage for 2012 includes short-term space leased on behalf of NASA in accordance with requirements stipulated under its lease to allow it to restructure its space at Two Independence Square in Washington, D.C. As of September 30, 2012, the total short-term space amounts to approximately 63,000 square feet and it will be occupied until an estimated date of September 30, 2013.
(4) For additional information on acquisitions/dispositions completed during the last year and value-add properties, please refer to pages 32 and 33, respectively.
(5) Dispositions completed during the previous twelve months are deducted from the previous period data and acquisitions completed during the previous twelve months are deducted from the current period data.
(6) Excluding executed but not commenced leases for currently vacant spaces, comprising approximately 706,000 square feet for the current period and 371,000 square feet for the prior period, Piedmont's same store commenced leased percentage was 84.0% and 83.5% for the current and prior periods, respectively.
 
22

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended September 30, 2012	 	

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

Leases executed for spaces vacant one year or less	 	 	465	  	 	 	46	% 	 	 	2.3	% 	 	 	(16.5	%) 	 	 	(9.9	%) 	
 	 	 	 	 	 	
Leases executed for spaces excluded from analysis (5)	 	 	547	  	 	 	54	% 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	
 	 	Nine Months Ended September 30, 2012	 	

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

Leases executed for spaces vacant one year or less	 	 	1,270	  	 	 	62	% 	 	 	6.2	% 	 	 	(13.5	%) 	 	 	(7.2	%) 	
 	 	 	 	 	 	
Leases executed for spaces excluded from analysis (5)	 	 	783	  	 	 	38	% 	 	 	 	 	 	 	 	 	 	 	 	 	

(1) The population analyzed consists of consolidated office leases executed during the period (retail leases, as well as leases associated with storage spaces, management offices, industrial properties and unconsolidated joint venture assets, were excluded from this analysis) with lease terms greater than one year.
(2) For the purposes of this analysis, the cash rents last in effect for the previous leases were compared to the initial cash rents of the new leases in order to calculate the percentage change.
(3) For the purposes of this analysis, the accrual basis rents for the previous leases were compared to the accrual basis rents of the new leases in order to calculate the percentage change. For newly signed leases which have variations in accrual basis rents, whether because of known future expansions, contractions, lease expense recovery structure changes, or other similar reasons, the weighted average of such accrual basis rents is used for the purposes of this analysis.
(4) For leases under which a tenant may use, at its discretion, a portion of its tenant improvement allowance for expenses other than those related to improvements to its space, an assumption is made that the tenant elects to use any such portion of its tenant improvement allowance for improvements to its space prior to the commencement of its lease, unless the Company is notified otherwise by the tenant. This assumption is made based upon the historical tenant improvement allowance usage patterns of the Company's tenants.
(5) Represents leases signed at our consolidated office assets that do not qualify for inclusion in the analysis primarily because the spaces for which the new leases were signed had been vacant for greater than one year.
 
23

Piedmont Office Realty Trust, Inc.
Lease Expiration Schedule
As of September 30, 2012
(in thousands)

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	OFFICE PORTFOLIO	  	GOVERNMENTAL ENTITIES	
 	  	Annualized Lease
Revenue  (1)	  	Percentage of
Annualized Lease
Revenue (%)	  	Rentable Square
Footage	  	Percentage of
Rentable Square
Footage (%)	  	Annualized Lease
Revenue  (1)	  	Percentage of
Annualized Lease
Revenue (%)	  	 
Percentage of
Current Year
Total Annualized
Lease Revenue
Expiring (%)	
 	 	 	 	 	 	 	 	
Vacant	  	$0	  	0.0	  	2,659	  	13.0	  	$0	  	0.0	  	N/A	
2012(2)	  	16,701	  	3.0	  	617	  	3.0	  	7,018	  	1.3	  	42.0	
2013	  	53,218	  	9.7	  	1,172	  	5.7	  	21,839	  	4.0	  	41.0	
2014	  	50,965	  	9.3	  	1,463	  	7.1	  	3,572	  	0.6	  	7.0	
2015	  	43,936	  	8.0	  	1,535	  	7.5	  	33	  	0.0	  	0.1	
2016	  	29,791	  	5.4	  	1,026	  	5.0	  	1,435	  	0.3	  	4.8	
2017	  	36,667	  	6.7	  	1,159	  	5.7	  	1,846	  	0.3	  	5.0	
2018	  	52,768	  	9.6	  	1,760	  	8.6	  	8,763	  	1.6	  	16.6	
2019	  	47,844	  	8.7	  	1,783	  	8.7	  	19,963	  	3.6	  	41.7	
2020	  	26,527	  	4.8	  	1,030	  	5.0	  	9,545	  	1.7	  	36.0	
2021	  	14,488	  	2.6	  	502	  	2.5	  	0	  	0.0	  	0.0	
2022	  	21,970	  	4.0	  	712	  	3.5	  	0	  	0.0	  	0.0	
2023	  	37,635	  	6.8	  	1,628	  	7.9	  	0	  	0.0	  	0.0	
2024	  	32,333	  	5.9	  	1,116	  	5.5	  	0	  	0.0	  	0.0	
2025	  	7,260	  	1.3	  	295	  	1.4	  	0	  	0.0	  	0.0	
Thereafter	  	77,866	  	14.2	  	2,031	  	9.9	  	28,953	  	5.3	  	37.2	

Total / Weighted Average	  	$549,969	  	100.0	  	20,488	  	100.0	  	$102,967	  	18.7	  	 	

(1) Annualized rental income associated with newly executed leases for currently occupied space is incorporated herein only at the expiration date for the current lease. Annualized rental income associated with such new leases is removed from the expiry year of the current lease and added to the expiry year of the new lease. These adjustments effectively incorporate known roll ups and roll downs into the expiration schedule.
(2) Leases and other revenue-producing agreements on a month-to-month basis, aggregating 7,768 square feet and Annualized Lease Revenue of $281,230, are assigned a lease expiration date of a year and a day beyond the period end date. Includes leases with an expiration date of September 30, 2012 aggregating 3,331 square feet and Annualized Lease Revenue of $111,643, as well as the National Park Service lease, which is comprised of 219,750 square feet and $10.0 million in Annualized Lease Revenue, or 1.8% of the Company's total Annualized Lease Revenue.
 
24

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

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

Atlanta	  	47	  	$917	  	0	  	$0	  	8	  	$267	  	11	  	$259	
Austin	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	
Boston	  	1	  	37	  	0	  	32	  	0	  	0	  	0	  	0	
Central & South Florida	  	4	  	113	  	0	  	0	  	0	  	0	  	14	  	350	
Chicago	  	11	  	287	  	47	  	1,681	  	24	  	602	  	0	  	793	
Cleveland	  	102	  	1,580	  	0	  	0	  	0	  	0	  	0	  	0	
Dallas	  	32	  	752	  	28	  	705	  	10	  	252	  	0	  	0	
Denver	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	
Detroit	  	0	  	0	  	0	  	0	  	0	  	0	  	52	  	0	
Houston	  	11	  	345	  	0	  	0	  	0	  	0	  	0	  	0	
Los Angeles	  	22	  	866	  	2	  	50	  	47	  	1,523	  	5	  	151	
Minneapolis	  	8	  	227	  	16	  	524	  	5	  	160	  	16	  	535	
Nashville	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	
New York	  	150	  	3,319	  	11	  	306	  	5	  	124	  	0	  	0	
Philadelphia	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	
Phoenix	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	
Washington, D.C.(3)	  	229	  	10,554	  	344	  	21,006	  	70	  	3,816	  	64	  	0	

Total / Weighted Average (4)	  	617	  	$18,997	  	448	  	$24,304	  	169	  	$6,744	  	162	  	$2,088	

 
(1) Includes leases with an expiration date of September 30, 2012 aggregating 3,331 square feet and Expiring Lease Revenue of $111,643. No such adjustments are made to other periods presented.
(2) Expiring lease revenue is calculated as expiring square footage multiplied by the gross rent per square foot of the tenant currently leasing the space.
(3) Approximately 220,000 square feet and $10.0 million of expiring lease revenue in the fourth quarter of 2012 is related to the lease with the National Park Service, which is currently in hold over status.
(4) Total expiring lease revenue in any given year will not tie to the expiring Annualized Lease Revenue presented on the Lease Expiration Schedule on the previous page as the Lease Expiration Schedule accounts for the revenue effects of newly signed leases. Reflected herein are expiring revenues based on in place rental rates.
 
25

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	12/31/2012 (1)	  	12/31/2013	  	12/31/2014	  	12/31/2015	  	12/31/2016	
 	  	 	  	 	  	 	  	 	  	 	
 	  	Expiring
Square
  Footage    	  	  Expiring Lease    
Revenue  (2)	  	Expiring
Square
  Footage  	  	  Expiring Lease  
Revenue  (2)	  	Expiring
Square
  Footage  	  	  Expiring Lease  
Revenue  (2)	  	Expiring
Square
  Footage  	  	  Expiring Lease  
Revenue  (2)	  	Expiring
Square
  Footage  	  	  Expiring Lease  
Revenue  (2)	
 	  	 	  	 	  	 	  	 	  	 	
Atlanta	  	47	  	$917	  	19	  	$582	  	29	  	$624	  	29	  	$504	  	18	  	$353	
Austin	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	195	  	6,258	
Boston	  	1	  	37	  	0	  	32	  	27	  	1,884	  	135	  	2,791	  	3	  	185	
Central & South Florida	  	4	  	113	  	22	  	571	  	18	  	458	  	17	  	388	  	65	  	1,604	
Chicago	  	11	  	287	  	226	  	8,421	  	26	  	3,381	  	188	  	5,170	  	82	  	2,386	
Cleveland	  	102	  	1,580	  	10	  	218	  	0	  	0	  	0	  	0	  	13	  	294	
Dallas	  	32	  	752	  	46	  	1,162	  	13	  	304	  	270	  	6,021	  	7	  	150	
Denver	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	156	  	2,919	
Detroit	  	0	  	0	  	86	  	750	  	8	  	147	  	132	  	3,901	  	31	  	690	
Houston	  	11	  	345	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	17	
Los Angeles	  	22	  	866	  	57	  	1,876	  	5	  	1,550	  	428	  	15,250	  	88	  	2,646	
Minneapolis	  	8	  	227	  	48	  	1,586	  	686	  	18,685	  	103	  	3,679	  	33	  	1,043	
Nashville	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	
New York	  	150	  	3,319	  	37	  	1,534	  	96	  	4,059	  	66	  	2,431	  	280	  	8,989	
Philadelphia	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	  	0	
Phoenix	  	0	  	0	  	0	  	0	  	0	  	0	  	132	  	1,947	  	0	  	0	
Washington, D.C.(3)	  	229	  	10,554	  	621	  	30,888	  	555	  	19,320	  	35	  	1,719	  	55	  	2,421	

Total / Weighted Average (4)	  	617	  	$18,997	  	1,172	  	$47,620	  	1,463	  	$50,412	  	1,535	  	$43,801	  	1,026	  	$29,955	

 
(1) Includes leases with an expiration date of September 30, 2012 aggregating 3,331 square feet and Expiring Lease Revenue of $111,643. No such adjustments are made to other periods presented.
(2) Expiring lease revenue is calculated as expiring square footage multiplied by the gross rent per square foot of the tenant currently leasing the space.
(3) Approximately 220,000 square feet and $10.0 million of expiring lease revenue in 2012 is related to the lease with the National Park Service, which is currently in hold over status.
(4) Total expiring lease revenue in any given year will not tie to the expiring Annualized Lease Revenue presented on the Lease Expiration Schedule on page 24 as the Lease Expiration Schedule accounts for the revenue effects of newly signed leases. Reflected herein are expiring revenues based on in place rental rates.
 
26

Piedmont Office Realty Trust, Inc.
Capital Expenditures & Commitments
For the quarter ended September 30, 2012
Unaudited ($ in thousands)

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	
 	 	 	  	For the Three Months Ended	 	 	 	
 	 	 	  	 	 	 	 	 	
 	 	 	  	            9/30/2012            	 	  	6/30/2012            	 	  	3/31/2012            	 	  	12/31/2011            	 	 	9/30/2011            	 	 	 	
 	 	 	  	 	 	 	 	 	
 	 	Non-incremental	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	
 	 	Bldg / construction / dev	  	 	$5,257	  	  	 	$1,959	  	  	 	$1,426	  	  	 	$3,650	  	 	 	$1,063	  	 	 	
 	 	Tenant improvements	  	 	17,347	  	  	 	4,809	  	  	 	5,367	  	  	 	8,463	  	 	 	4,748	  	 	 	
 	 	Leasing costs	  	 	15,979	  	  	 	11,013	  	  	 	1,273	  	  	 	3,279	  	 	 	8,718	  	 	 	
 	 	 	  	 	 	 	 	 	
 	 	Total non-incremental	  	 	38,583	  	  	 	17,781	  	  	 	8,066	  	  	 	15,392	  	 	 	14,529	  	 	 	
 	 	Incremental	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	
 	 	Bldg / construction / dev	  	 	7,338	  	  	 	5,721	  	  	 	2,241	  	  	 	2,040	  	 	 	1,646	  	 	 	
 	 	Tenant improvements	  	 	5,904	  	  	 	12,044	  	  	 	5,938	  	  	 	10,862	  	 	 	7,154	  	 	 	
 	 	Leasing costs	  	 	8,768	  	  	 	1,687	  	  	 	1,925	  	  	 	12,791	  	 	 	1,464	  	 	 	
 	 	 	  	 	 	 	 	 	
 	 	Total incremental	  	 	22,010	  	  	 	19,452	  	  	 	10,104	  	  	 	25,693	  	 	 	10,264	  	 	 	
 	 	 	  	 	 	 	 	 	
 	 	Total capital expenditures	  	 	$60,593	  	  	 	$37,233	  	  	 	$18,170	  	  	 	$41,085	  	 	 	$24,793	  	 	 	

 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	

 	 	Non-incremental tenant improvement commitments (1)	  	 	 	 	 	 	 	
 	 	Non-incremental tenant improvement commitments outstanding as of June 30, 2012	  	 	 	$97,190	  	 	 	
 	 	New non-incremental tenant improvement commitments related to leases executed during period	  	 	 	25,667	  	 	 	
 	 	Non-incremental tenant improvement expenditures	  	  	 	(17,347	) 	 	 	 	 	 	 	
 	 	Less: Tenant improvement expenditures fulfilled through accrued liabilities already presented on Piedmont’s balance sheet, expired commitments or other adjustments	   	  	 	16,515	  	 	 	 	 	 	 	
 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	
 	 	Non-incremental tenant improvement commitments fulfilled, expired or other adjustments	  	 	 	(832	) 	 	 	
 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	
 	 	Total as of September 30, 2012	  	  	 	 	 	  	 	 	 	  	 	 	 	 	 	$122,025	  	 	 	

 
 
NOTE: The information presented on this page is for all consolidated assets, inclusive of our industrial properties.
(1) Commitments are unexpired contractual non-incremental tenant improvement obligations for leases executed in current and prior periods that have not yet been incurred and have not otherwise been presented on Piedmont's financial statements. The four largest commitments total approximately $74.3 million, or 61% of total outstanding commitments.
 
27

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	  	 	  	  	For the Year Ended	
 	 	 	 	For the Three Months Ended    
September 30, 2012	 	For the Nine Months Ended    
September 30, 2012	  	2011	  	2010	  	2009	
Renewal Leases	 	 	 	 	  	 	  	 	  	 	
 	 	Number of leases	 	6	 	27	  	48	  	37	  	34    	
 	 	Square feet (1)	 	19,247	 	534,832	  	2,280,329	  	1,241,481	  	1,568,895    	
 	 	Tenant improvements per square foot (2)	 	$11.48	 	$6.63	  	$33.29	  	$14.40	  	$12.01    	
 	 	Leasing commissions per square foot	 	$7.78	 	$4.71	  	$9.97	  	$8.40	  	$5.51    	
 	 	Total per square foot	 	$19.26	 	$11.34	  	$43.26	  	$22.80	  	$17.52    	
 	 	 	 	 	 	 	
 	 	Tenant improvements per square foot per year of lease term	 	$1.54	 	$1.45	  	$3.93	  	$1.74	  	$1.44    	
 	 	Leasing commissions per square foot per year of lease term	 	$1.05	 	$1.03	  	$1.18	  	$1.02	  	$0.66    	
 	 	Total per square foot per year of lease term (3)	 	$2.59	 	$2.48	  	$5.11	  	$2.76	  	$2.10    	
 	 	 	 	 	 	
  New Leases	 	 	 	 	  	 	  	 	  	 	
 	 	Number of leases	 	25	 	69	  	76	  	56	  	28    	
 	 	Square feet (1)	 	993,179	 	1,518,363	  	1,588,271	  	866,212	  	700,295    	
 	 	Tenant improvements per square foot (2)	 	$55.72	 	$49.57	  	$41.21	  	$32.65	  	$45.04    	
 	 	Leasing commissions per square foot	 	$21.06	 	$19.50	  	$15.38	  	$11.28	  	$17.12    	
 	 	Total per square foot	 	$76.78	 	$69.07	  	$56.59	  	$43.93	  	$62.16    	
 	 	 	 	 	 	 	
 	 	Tenant improvements per square foot per year of lease term	 	$4.35	 	$4.27	  	$4.19	  	$4.16	  	$4.05    	
 	 	Leasing commissions per square foot per year of lease term	 	$1.64	 	$1.68	  	$1.57	  	$1.44	  	$1.54    	
 	 	Total per square foot per year of lease term	 	$5.99	 	$5.95	  	$5.76	  	$5.60	  	$5.59    	
 	 	 	 	 	 	
  Total	 	 	 	 	  	 	  	 	  	 	
 	 	Number of leases	 	31	 	96	  	124	  	93	  	62    	
 	 	Square feet	 	1,012,426	 	2,053,195	  	3,868,600	  	2,107,693	  	2,269,190    	
 	 	Tenant improvements per square foot (2)	 	$54.88	 	$38.38	  	$36.54	  	$21.90	  	$22.21    	
 	 	Leasing commissions per square foot	 	$20.80	 	$15.65	  	$12.19	  	$9.59	  	$9.09    	
 	 	Total per square foot	 	$75.68	 	$54.03	  	$48.73	  	$31.49	  	$31.30    	
 	 	 	 	 	 	 	
 	 	Tenant improvements per square foot per year of lease term	 	$4.32	 	$3.92	  	$4.05	  	$2.70	  	$2.42    	
 	 	Leasing commissions per square foot per year of lease term	 	$1.64	 	$1.60	  	$1.35	  	$1.18	  	$0.99    	
 	 	Total per square foot per year of lease term	 	$5.96	 	$5.52	  	$5.40	  	$3.88	  	$3.41    	
NOTE: This information is presented for our consolidated office assets only and excludes activity associated with storage spaces. Beginning with 2012, all leases for consolidated office properties, including short-term leases (leases for a term of less than one year), are included in the information presented above. Prior to 2012, short-term leases were excluded from this information. Management believes that short-term leases completed prior to 2012 would have an immaterial impact to the data presented herein.
(1) During the third quarter of 2012, we completed an approximate 20,000 square foot, 15-year renewal with a tenant at 500 West Monroe Street in Chicago, IL that involved a relocation in the building and an expansion. For the purposes of this schedule, we are treating the lease as a new lease since the tenant will be occupying new space.
(2) For leases under which a tenant may use, at its discretion, a portion of its tenant improvement allowance for expenses other than those related to improvements to its space, an assumption is made that the tenant elects to use any such portion of its tenant improvement allowance for improvements to its space prior to the commencement of its lease, unless the Company is notified otherwise by the tenant. This assumption is made based upon the historical tenant improvement allowance usage patterns of the Company's tenants.
(3) During 2011, we completed two large, 15-year lease renewals with significant capital commitments: NASA at Two Independence Square in Washington, D.C. and GE at 500 West Monroe Street in Chicago, IL. If the costs associated with these renewals were to be removed from the average committed capital cost calculation, the average committed capital cost per square foot per year of lease term for renewal leases in 2011 would be $2.80.
 
28

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

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Location	  	Number of
Properties	  	  	  	Annualized Lease
Revenue ($’s in
thousands)	  	  	  	Percentage of
Annualized Lease
Revenue (%)	  	  	  	Rentable Square
Footage (in
Thousands)	  	  	  	Percentage of
Rentable Square
Footage (%)	  	  	  	Leased Square
Footage (in
thousands)	  	  	  	Percent Leased
(%)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Chicago	  	6	  	 	  	$125,577	  	 	  	22.8	  	 	  	4,777	  	 	  	23.3	  	 	  	3,731	  	 	  	78.1	
Washington, D.C.	  	14	  	 	  	121,071	  	 	  	22.0	  	 	  	3,056	  	 	  	14.9	  	 	  	2,795	  	 	  	91.5	
New York	  	7	  	 	  	80,833	  	 	  	14.7	  	 	  	2,658	  	 	  	13.0	  	 	  	2,469	  	 	  	92.9	
Minneapolis	  	4	  	 	  	43,663	  	 	  	8.0	  	 	  	1,613	  	 	  	7.9	  	 	  	1,480	  	 	  	91.8	
Los Angeles	  	4	  	 	  	29,800	  	 	  	5.4	  	 	  	999	  	 	  	4.9	  	 	  	869	  	 	  	87.0	
Boston	  	6	  	 	  	25,825	  	 	  	4.7	  	 	  	1,023	  	 	  	5.0	  	 	  	1,013	  	 	  	99.0	
Dallas	  	7	  	 	  	24,815	  	 	  	4.5	  	 	  	1,276	  	 	  	6.2	  	 	  	1,158	  	 	  	90.8	
Detroit	  	4	  	 	  	17,372	  	 	  	3.2	  	 	  	930	  	 	  	4.5	  	 	  	783	  	 	  	84.2	
Atlanta	  	6	  	 	  	15,395	  	 	  	2.8	  	 	  	1,042	  	 	  	5.1	  	 	  	634	  	 	  	60.8	
Houston	  	2	  	 	  	14,402	  	 	  	2.6	  	 	  	463	  	 	  	2.3	  	 	  	461	  	 	  	99.6	
Philadelphia	  	1	  	 	  	14,267	  	 	  	2.6	  	 	  	761	  	 	  	3.7	  	 	  	761	  	 	  	100.0	
Phoenix	  	4	  	 	  	9,095	  	 	  	1.7	  	 	  	564	  	 	  	2.8	  	 	  	477	  	 	  	84.6	
Central & South Florida	  	4	  	 	  	8,263	  	 	  	1.5	  	 	  	476	  	 	  	2.3	  	 	  	359	  	 	  	75.4	
Nashville	  	1	  	 	  	7,275	  	 	  	1.3	  	 	  	312	  	 	  	1.5	  	 	  	312	  	 	  	100.0	
Austin	  	1	  	 	  	6,258	  	 	  	1.1	  	 	  	195	  	 	  	0.9	  	 	  	195	  	 	  	100.0	
Cleveland	  	2	  	 	  	3,139	  	 	  	0.6	  	 	  	187	  	 	  	0.9	  	 	  	177	  	 	  	94.7	
Denver	  	1	  	 	  	2,919	  	 	  	0.5	  	 	  	156	  	 	  	0.8	  	 	  	156	  	 	  	100.0	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total / Weighted Average	  	74	  	 	  	$549,969	  	 	  	100.0	  	 	  	20,488	  	 	  	100.0	  	 	  	17,830	  	 	  	87.0	

 
29

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

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	CBD / URBAN INFILL	  	 	 	SUBURBAN	  	 	 	TOTAL	
Location	 	State	 	Number
of
Properties	 	Percentage
of
Annualized
Lease
Revenue
(%)	 	Rentable
Square
Footage (in
Thousands)	 	Percentage
of
Rentable
Square
Footage
(%)	 	 	  	 	 	Number
of
Properties	 	Percentage
of
Annualized
Lease
Revenue
(%)	 	Rentable
Square
Footage (in
Thousands)	 	Percentage
of
Rentable
Square
Footage
(%)	  	 	 	Number
of
Properties	 	Percentage
of
Annualized
Lease
Revenue
(%)	 	Rentable
Square
Footage (in
Thousands)	 	Percentage
of
Rentable
Square
Footage
(%)	
 	 	 	 	 	 	 	
Chicago	 	IL	 	2	 	18.4	 	3,651	 	17.8	 	 	  	 	 	4	 	4.4	 	1,126	 	5.5	  	 	 	6	 	22.8	 	4,777	 	23.3	
Washington, D.C.	 	DC, VA, MD	 	9	 	19.7	 	2,575	 	12.6	 	 	  	 	 	5	 	2.3	 	481	 	2.3	  	 	 	14	 	22.0	 	3,056	 	14.9	
New York	 	NY, NJ	 	1	 	7.2	 	1,027	 	5.0	 	 	  	 	 	6	 	7.5	 	1,631	 	8.0	  	 	 	7	 	14.7	 	2,658	 	13.0	
Minneapolis	 	MN	 	1	 	5.1	 	928	 	4.6	 	 	  	 	 	3	 	2.9	 	685	 	3.3	  	 	 	4	 	8.0	 	1,613	 	7.9	
Los Angeles	 	CA	 	3	 	4.8	 	865	 	4.2	 	 	  	 	 	1	 	0.6	 	134	 	0.7	  	 	 	4	 	5.4	 	999	 	4.9	
Boston	 	MA	 	2	 	2.2	 	173	 	0.9	 	 	  	 	 	4	 	2.5	 	850	 	4.1	  	 	 	6	 	4.7	 	1,023	 	5.0	
Dallas	 	TX	 	0	 	0.0	 	0	 	0.0	 	 	  	 	 	7	 	4.5	 	1,276	 	6.2	  	 	 	7	 	4.5	 	1,276	 	6.2	
Detroit	 	MI	 	1	 	1.8	 	493	 	2.4	 	 	  	 	 	3	 	1.4	 	437	 	2.1	  	 	 	4	 	3.2	 	930	 	4.5	
Atlanta	 	GA	 	2	 	1.7	 	558	 	2.7	 	 	  	 	 	4	 	1.1	 	484	 	2.4	  	 	 	6	 	2.8	 	1,042	 	5.1	
Houston	 	TX	 	0	 	0.0	 	0	 	0.0	 	 	  	 	 	2	 	2.6	 	463	 	2.3	  	 	 	2	 	2.6	 	463	 	2.3	
Philadelphia	 	PA	 	1	 	2.6	 	761	 	3.7	 	 	  	 	 	0	 	0.0	 	0	 	0.0	  	 	 	1	 	2.6	 	761	 	3.7	
Phoenix	 	AZ	 	0	 	0.0	 	0	 	0.0	 	 	  	 	 	4	 	1.7	 	564	 	2.8	  	 	 	4	 	1.7	 	564	 	2.8	
Central & South Florida	 	FL	 	0	 	0.0	 	0	 	0.0	 	 	  	 	 	4	 	1.5	 	476	 	2.3	  	 	 	4	 	1.5	 	476	 	2.3	
Nashville	 	TN	 	1	 	1.3	 	312	 	1.5	 	 	  	 	 	0	 	0.0	 	0	 	0.0	  	 	 	1	 	1.3	 	312	 	1.5	
Austin	 	TX	 	0	 	0.0	 	0	 	0.0	 	 	  	 	 	1	 	1.1	 	195	 	0.9	  	 	 	1	 	1.1	 	195	 	0.9	
Cleveland	 	OH	 	0	 	0.0	 	0	 	0.0	 	 	  	 	 	2	 	0.6	 	187	 	0.9	  	 	 	2	 	0.6	 	187	 	0.9	
Denver	 	CO	 	0	 	0.0	 	0	 	0.0	 	 	  	 	 	1	 	0.5	 	156	 	0.8	  	 	 	1	 	0.5	 	156	 	0.8	
 	 	 	 	 	 	 	
Total / Weighted Average	 	 	 	23	 	64.8	 	11,343	 	55.4	 	 	  	 	 	51	 	35.2	 	9,145	 	44.6	  	 	 	74	 	100.0	 	20,488	 	100.0	

30

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

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

Governmental Entity	  	7	  	1.6	  	$102,967	  	18.7	  	2,390	  	13.4	
Depository Institutions	  	13	  	2.9	  	49,813	  	9.1	  	1,734	  	9.7	
Business Services	  	63	  	14.1	  	41,678	  	7.6	  	1,453	  	8.1	
Petroleum Refining & Related Industries	  	1	  	0.2	  	31,749	  	5.8	  	776	  	4.4	
Nondepository Credit Institutions	  	15	  	3.3	  	31,561	  	5.7	  	1,114	  	6.2	
Insurance Carriers	  	24	  	5.4	  	31,041	  	5.6	  	1,386	  	7.8	
Engineering, Accounting, Research, Management & Related Services	  	29	  	6.5	  	31,009	  	5.6	  	939	  	5.3	
Communications	  	34	  	7.6	  	18,320	  	3.3	  	610	  	3.4	
Insurance Agents, Brokers & Services	  	8	  	1.8	  	17,298	  	3.2	  	710	  	4.0	
Security & Commodity Brokers, Dealers, Exchanges & Services	  	29	  	6.5	  	16,880	  	3.1	  	617	  	3.5	
Educational Services	  	10	  	2.2	  	15,813	  	2.9	  	440	  	2.5	
Food & Kindred Products	  	6	  	1.3	  	15,163	  	2.8	  	428	  	2.4	
Transportation Equipment	  	4	  	0.9	  	13,860	  	2.5	  	518	  	2.9	
Electronic & Other Electrical Equipment & Components, Except Computer	  	10	  	2.2	  	13,759	  	2.5	  	572	  	3.2	
Fabricated Metal Products, Except Machinery & Transportation Equipment	  	4	  	0.9	  	12,340	  	2.2	  	418	  	2.3	
Other	  	191	  	42.6	  	106,718	  	19.4	  	3,725	  	20.9	
 	
Total	  	448	  	100.0	  	$549,969	  	100.0	  	17,830	  	100.0	

 
31

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Acquisitions Over Previous Eighteen Months	  	 	  	 	  	 	  	 	
 	
Property Name	  	Location	  	  Acquisition  
Date	  	Percent
  Ownership  
(%)	  	  Year Built  	  	Purchase
  Price ($’s in  
thousands)	  	Rentable
Square
  Footage (in  
thousands)	  	Percent
Leased at
  Acquisition  
(%)	
 	
The Dupree	  	Atlanta, GA	  	4/29/2011	  	100	  	1997	  	20,450	  	138	  	83	
The Medici	  	Atlanta, GA	  	6/7/2011	  	100	  	2008	  	13,210	  	152	  	22	
225 and 235 Presidential Way	  	Woburn, MA	  	9/13/2011	  	100	  	2000-2001	  	85,300	  	440	  	100	
400 TownPark	  	Lake Mary, FL	  	11/10/2011	  	100	  	2008	  	23,865	  	176	  	19	
Gavitello Land	  	Atlanta, GA	  	6/28/2012	  	100	  	N/A	  	2,500	  	N/A	  	N/A	

 	  	 	  	 	  	 	  	 	  	$145,325	  	906	  	69	

Dispositions Over Previous Eighteen Months	  	 	  	 	  	 	  	 	
 	
Property Name	  	Location	  	  Disposition  
Date	  	Percent
  Ownership  
(%)	  	  Year Built  	  	Sale Price ($’s  
in thousands)	  	Rentable
Square
  Footage (in  
thousands)	  	Percent
Leased at
  Disposition  
(%)	
 	
360 Interlocken Boulevard (1)	  	Broomfield, CO	  	6/2/2011	  	4	  	1996	  	$9,150	  	52	  	100	
Eastpointe Corporate Center	  	Issaquah, WA	  	7/1/2011	  	100	  	2001	  	32,000	  	156	  	19	
47300 Kato Road (1)	  	Fremont, CA	  	8/25/2011	  	78	  	1982	  	3,825	  	58	  	0	
5000 Corporate Court	  	Holtsville, NY	  	8/31/2011	  	100	  	2000	  	39,250	  	264	  	82	
35 West Wacker Drive (1)	  	Chicago, IL	  	12/15/2011	  	96.5	  	1989	  	401,000	  	1,118	  	100	
Willamette	  	Beaverton, OR	  	3/19/2012	  	100	  	1988	  	7,050	  	73	  	100	
Rogue	  	Beaverton, OR	  	3/19/2012	  	100	  	1998	  	13,550	  	105	  	100	
Deschutes (2)	  	Beaverton, OR	  	3/19/2012	  	100	  	1989	  	7,150	  	73	  	50	
Rhein	  	Beaverton, OR	  	3/19/2012	  	100	  	1990	  	10,250	  	74	  	100	
Portland Land Parcels	  	Beaverton, OR	  	3/19/2012	  	100	  	N/A	  	5,942	  	N/A	  	N/A	
26200 Enterprise Way	  	Lake Forest, CA	  	5/31/2012	  	100	  	2000	  	28,250	  	145	  	100	
110 Hidden Lake Circle	  	Duncan, SC	  	9/21/2012	  	100	  	1987	  	16,058	  	474	  	100	
112 Hidden Lake Circle	  	Duncan, SC	  	9/21/2012	  	100	  	1987	  	9,842	  	313	  	100	

 	  	 	  	 	  	 	  	 	  	$583,317	  	2,905	  	91	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Acquisitions Subsequent to Quarter End	  	 	  	 	  	 	  	 	
 	
Property Name	  	Location	 	  	  Acquisition  
Date	  	Percent
  Ownership  
(%)	  	  Year Built  	  	Purchase
  Price ($’s in  
thousands)	  	Rentable
Square
  Footage (in  
thousands)	  	Percent
Leased at
  Acquisition  
(%)	
 	
Glenridge Highlands III Land	  	 	Atlanta, GA	  	  	10/15/2012	  	100	  	N/A	  	$1,725	  	N/A	  	N/A	
 
(1) Sale price and rentable square footage are gross figures and have not been adjusted for Piedmont's ownership percentage.
(2) The property would have been 100% leased upon sale had Piedmont not exercised a landlord termination option for one full floor in anticipation of a potential lease with Nike, Inc., the ultimate purchaser of the property.
 
32

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

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

Value-Add Properties	
 	
Property Name	  	Location	 	Acquisition
Date	 	 	Percent
Ownership
(%)	 	Year Built	 	Purchase
Price ($’s in
thousands)	 	Rentable
Square
Footage (in
thousands)	 	Current
Percent
Leased (%)	 	Percent
Leased at
Acquisition
(%)	 	Real Estate
Gross Book
Value	 	Estimated Cost
to Stabilize (per
VACANT square
foot)	
 	
Suwanee Gateway One	  	Suwanee, GA	 	 	9/28/2010	  	 	100	 	2008	 	$7,875	 	142	 	0	 	0	 	$7,953	 	$40 - 60	
500 West Monroe Street (1)	  	Chicago, IL	 	 	3/31/2011	  	 	100	 	1991	 	227,500	 	962	 	59	 	49	 	212,636	 	$60 - 90	
The Medici	  	Atlanta, GA	 	 	6/7/2011	  	 	100	 	2008	 	13,210	 	152	 	23	 	22	 	13,711	 	$35 - 60	
400 TownPark	  	Lake Mary, FL	 	 	11/10/2011	  	 	100	 	2008	 	23,865	 	176	 	34	 	19	 	23,705	 	$35 - 50	
 	  	 	 	 	 	 	 	 	 	 	 	 	
 	  	 	 	 	 	 	 	 	 	 	 	$272,450	 	1,432	 	46	 	37	 	$258,005	 	 	

Properties Removed From Value-Add Classification This Year	
 	
Property Name	  	Location	 	Acquisition
Date	 	 	Percent
Ownership
(%)	 	Year Built	 	Purchase
Price ($’s in
thousands)	 	Rentable
Square
Footage (in
thousands)	 	Current
Percent
Leased (%)	 	Percent
Leased at
Acquisition
(%)	 	Real Estate
Gross Book
Value	 	Estimated Cost
to Stabilize (per
VACANT square
foot)	
 	
1200 Enclave Parkway	  	Houston, TX	 	 	3/30/2011	  	 	100	 	1999	 	$18,500	 	150	 	99	 	18	 	$24,685	 	N/A	
(1) Investment in this property was converted from a structured finance investment to an owned real estate asset through a UCC foreclosure of an equity ownership interest on March 31, 2011. The purchase price presented represents the estimated fair value of the real estate assets comprising the property as of the date of the transaction. Percent leased at acquisition reflects the space leased by Marsh USA as vacant, as the tenant had already announced plans to vacate prior to Piedmont's assumption of ownership of the asset.
 
33

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

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Unconsolidated Joint Venture Properties 	  	Location	  	Percent
Ownership
(%)	  	Year Built	  	Piedmont
Share of Real
Estate Net
Book Value
($’s in
thousands)	  	Real Estate
Net Book
Value ($’s in
thousands)	  	Rentable Square
Footage (in
thousands)	  	Percent
Leased (%)	
 	
20/20 Building	  	Leawood, KS	  	57	  	1992	  	$2,481	  	$4,372	  	68.3	  	91	
4685 Investment Drive	  	Troy, MI	  	55	  	2000	  	4,990	  	9,071	  	77.1	  	100	
5301 Maryland Way	  	Brentwood, TN	  	55	  	1989	  	10,592	  	19,254	  	201.2	  	100	
8560 Upland Drive	  	Parker, CO	  	72	  	2001	  	7,687	  	10,693	  	148.2	  	74	
Two Park Center	  	Hoffman Estates, IL	  	72	  	1999	  	10,970	  	15,259	  	193.7	  	39	
 	  	 	  	 	  	 	  	 	
 	  	 	  	 	  	 	  	$36,720	  	$58,649	  	688.5	  	76	

Land Parcels	  	Location	  	 	  	 	  	 	  	 	  	Acres	  	Approximate
Current Value ($’s
in thousands)	
 	
Gavitello	  	Atlanta, GA	  	 	  	 	  	 	  	 	  	2.0	  	$2,500	
Enclave Parkway	  	Houston, TX	  	 	  	 	  	 	  	 	  	4.7	  	2,600	
Durham Avenue	  	South Plainfield, NJ	  	 	  	 	  	 	  	 	  	8.9	  	2,200	
State Highway 161	  	Irving, TX	  	 	  	 	  	 	  	 	  	4.5	  	1,200	
 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	
 	  	 	  	 	  	 	  	 	  	 	  	20.1	  	$8,500	

34

Piedmont Office Realty Trust, Inc.
Supplemental Definitions
 
Included in this section are management’s statements regarding certain non-GAAP financial measures provided in this supplemental report and reasons why management believes that these measures provide useful information to investors about the Company's financial condition and results of operations. Reconciliations of these non-GAAP measures are included within pages 38-40.
Adjusted Funds From Operations (“AFFO”): AFFO is calculated by deducting from Core FFO non-incremental capital expenditures and acquisition-related costs and adding back non-cash items including non-real estate depreciation, straight lined rents and fair value lease revenue, non-cash components of interest expense and compensation expense, and by making similar adjustments for unconsolidated partnerships and joint ventures. Although AFFO may not be comparable to that of other REITs, we believe it provides a meaningful indicator of our ability to fund cash needs and to make cash distributions to equity owners. AFFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating performance to net income, as an alternative to net cash flows from operating activities or as a measure of our liquidity.
Annualized Lease Revenue (“ALR”): ALR is calculated by multiplying (i) rental payments (defined as base rent plus operating expense reimbursements, if payable by the tenant on a monthly basis under the terms of a lease that have been executed, but excluding a) rental abatements and b) rental payments related to executed but not commenced leases for space that was covered by an existing lease), by (ii) 12. In instances in which contractual rents or operating expense reimbursements are collected on an annual, semi-annual, or quarterly basis, such amounts are multiplied by a factor of 1, 2, or 4, respectively, to calculate the annualized figure. For leases that have been executed but not commenced relating to un-leased space, ALR is calculated by multiplying (i) the monthly base rental payment (excluding abatements) plus any operating expense reimbursements for the initial month of the lease term, by (ii) 12. Unless stated otherwise, this measure excludes our unconsolidated joint venture interests.
Core EBITDA: Core EBITDA is defined as net income before interest, taxes, depreciation and amortization and incrementally removing any impairment losses, gains or losses from sales of property, or other significant non-recurring items. We do not include impairment losses in this measure because we feel these types of losses create volatility in our earnings and make it difficult to determine the earnings generated by our ongoing business. We believe Core EBITDA is a reasonable measure of our liquidity. Core EBITDA is a non-GAAP financial measure and should not be viewed as an alternative measurement of cash flows from operating activities or other GAAP basis liquidity measures. Other REITs may calculate Core EBITDA differently and our calculation should not be compared to that of other REITs.
Core Funds From Operations (“Core FFO”): We calculate Core FFO by starting with FFO, as defined by NAREIT, and adjusting for certain non-recurring items such as gains or losses on the early extinguishment of debt, acquisition-related costs and other significant items. Such items create significant earnings volatility. We believe Core FFO provides a meaningful measure of our operating performance and more predictability regarding future earnings potential. Core FFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating performance to net income; therefore, it should not be compared to other REITs' equivalent to Core FFO.
Core Net Operating Income (“Core NOI”): Core NOI is defined as real estate operating income with the add-back of corporate general and administrative expense, depreciation and amortization, and casualty and impairment losses and the deduction of income and expense associated with lease terminations and income associated with property management performed by Piedmont for other organizations. We present this measure on an accrual basis and a cash basis, which eliminates the effects of straight lined rents and fair value lease revenue. The company uses this measure to assess its operating results and believes it is important in assessing operating performance. Core NOI is a non-GAAP measure which does not have any standard meaning prescribed by GAAP and therefore may not be comparable to similar measures presented by other companies.
EBITDA: EBITDA is defined as net income before interest, taxes, depreciation and amortization. We believe EBITDA is an appropriate measure of our ability to incur and service debt. EBITDA should not be considered as an alternative to cash flows from operating activities, as a measure of our liquidity or as an alternative to net income as an indicator of our operating activities. Other REITs may calculate EBITDA differently and our calculation should not be compared to that of other REITs.
Funds From Operations (“FFO”): FFO is calculated in accordance with the current National Association of Real Estate Investment Trusts ("NAREIT") definition. NAREIT currently defines FFO as net income (computed in accordance with GAAP), excluding gains or losses from sales of property and impairment losses, adding back depreciation and amortization on real estate assets, and after the same adjustments for unconsolidated partnerships and joint ventures. These adjustments can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates. FFO may provide valuable comparisons of operating performance between periods and with other REITs. FFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating performance to net income. We believe that FFO is a beneficial indicator of the performance of an equity REIT. However, other REITs may not define FFO in accordance with the NAREIT definition, or may interpret the current NAREIT definition differently than we do; therefore, our computation of FFO may not be comparable to that of such other REITs.
Incremental Capital Expenditures: Incremental Capital Expenditures are defined as capital expenditures of a non-recurring nature that incrementally enhance the underlying assets' income generating capacity. Tenant improvements, leasing commissions, building capital and deferred lease incentives ("Leasing Costs") incurred to lease space that was vacant at acquisition, Leasing Costs for spaces vacant for greater than one year, Leasing Costs for spaces at newly acquired properties for which in-place leases expire shortly after acquisition, improvements associated with the expansion of a building and renovations that change the underlying classification of a building are included in this measure.

 
35

Piedmont Office Realty Trust, Inc.
Supplemental Definitions

 
 	
NOI from Unconsolidated Joint Ventures: NOI from Unconsolidated Joint Ventures is defined as Core NOI attributable to our interests in five properties owned through unconsolidated partnerships. We present this measure on an accrual basis and a cash basis, which eliminates the effects of straight lined rents and fair value lease revenue. NOI from Unconsolidated Joint Ventures is a non-GAAP measure and therefore may not be comparable to similarly defined data provided by other REITs.
 
Non-Incremental Capital Expenditures: Non-Incremental Capital Expenditures are defined as capital expenditures of a recurring nature related to tenant improvements and leasing commissions that do not incrementally enhance the underlying assets' income generating capacity. We exclude first generation tenant improvements and leasing commissions from this measure, in addition to other capital expenditures that qualify as Incremental Capital Expenditures, as defined above.
 
Same Store Net Operating Income (“Same Store NOI”): Same Store NOI is calculated as the Core NOI attributable to the properties owned or placed in service during the entire span of the current and prior year reporting periods. Same Store NOI excludes amounts attributable to industrial properties and unconsolidated joint venture assets. We present this measure on an accrual basis and a cash basis, which eliminates the effects of straight lined rents and fair value lease revenue. We believe Same Store NOI is an important measure of comparison of our stabilized properties' operating performance. Other REITs may calculate Same Store NOI differently and our calculation should not be compared to that of other REITs.
 
Same Store Properties: Same Store Properties is defined as properties owned or placed in service during the entire span of the current and prior year reporting periods. Same Store Properties excludes industrial properties and unconsolidated joint venture assets. We believe Same Store Properties is an important measure of comparison of our stabilized portfolio performance.	
 
36

Piedmont Office Realty Trust, Inc.
Research Coverage

 	 	 	 	 	 	 	
Paul E. Adornato, CFA	    	Michael Knott, CFA	    	Chris Caton	 	 	
BMO Capital Markets	    	Jed Reagan	    	Morgan Stanley	 	 	
3 Times Square, 26th Floor	    	Green Street Advisors	    	555 California Street, 21st Floor	
New York, NY 10036	    	660 Newport Center Drive, Suite 800	    	San Francisco, CA 94104	 	 	
Phone: (212) 885-4170	    	Newport Beach, CA 92660	    	Phone: (415) 576-2637	 	 	
 	    	Phone: (949) 640-8780	    	 	 	 	
 	 	 	 	
Brendan Maiorana	    	John W. Guinee, III	    	Richard Moore	 	 	
Wells Fargo	    	Erin Aslakson	    	Michael Carroll	 	 	
7 St. Paul Street	    	Stifel, Nicolaus & Company	    	RBC Capital Markets	
MAC R1230-011	    	One South Street	    	Arbor Court	 	 	
Baltimore, MD 21202	    	16th Floor	    	30575 Bainbridge Road, Suite 250	
Phone: (443) 263-6516	    	Baltimore, MD 21202	    	Solon, OH 44139	 	 	
 	    	Phone: (443) 224-1307	    	Phone: (440) 715-2646	 	 	
 	 	 	 	
Anthony Paolone, CFA	    	 	    	 	 	 	
JP Morgan	    	 	    	 	 	 	
277 Park Avenue	    	 	    	 	 	 	
New York, NY 10172	    	 	    	 	 	 	
Phone: (212) 622-6682	    	 	    	 	 	 	
 
37

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	 	Nine Months Ended	 	
 	 	    9/30/2012    	 	 	    6/30/2012    	 	 	    3/31/2012    	 	 	    12/31/2011    	 	 	    9/30/2011    	 	 	    9/30/2012    	 	 	    9/30/2011    	 	
 	 	 	 	 	 	 	 	
Net income attributable to Piedmont	 	$	10,831 	  	 	$	30,708 	  	 	$	37,227 	  	 	$	119,020 	  	 	$	51,026 	  	 	$	78,766 	  	 	$	106,020 	  	
 	 	 	 	 	 	 	 	
Depreciation	 	 	28,763 	  	 	 	28,033 	  	 	 	27,809 	  	 	 	27,287 	  	 	 	28,102 	  	 	 	84,605 	  	 	 	83,135 	  	
Amortization	 	 	15,366 	  	 	 	11,539 	  	 	 	12,840 	  	 	 	15,531 	  	 	 	16,616 	  	 	 	39,744 	  	 	 	44,601 	  	
Impairment loss	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	
(Gain) / loss on sale of properties	 	 	254 	  	 	 	(10,008)	  	 	 	(17,830)	  	 	 	(95,901)	  	 	 	(26,826)	  	 	 	(27,583)	  	 	 	(26,872)	  	
(Gain) / loss on consolidation of VIE	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	(1,532)	  	

Funds from operations	 	 	55,214 	  	 	 	60,272 	  	 	 	60,046 	  	 	 	65,937 	  	 	 	68,918 	  	 	 	175,532 	  	 	 	205,352 	  	
 	 	 	 	 	 	 	 	
Litigation settlement expense	 	 	7,500 	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	7,500 	  	 	 	-    	  	
Acquisition costs	 	 	7 	  	 	 	84 	  	 	 	(3)	  	 	 	372 	  	 	 	285 	  	 	 	88 	  	 	 	975 	  	
(Gain) / loss on extinguishment of debt	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	(1,039)	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	

Core funds from operations	 	 	62,721 	  	 	 	60,356 	  	 	 	60,043 	  	 	 	65,270 	  	 	 	69,203 	  	 	 	183,120 	  	 	 	206,327 	  	
 	 	 	 	 	 	 	 	
Depreciation of non real estate assets	 	 	196 	  	 	 	108 	  	 	 	93 	  	 	 	77 	  	 	 	84 	  	 	 	397 	  	 	 	422 	  	
Stock-based and other non-cash compensation expense	 	 	869 	  	 	 	289 	  	 	 	334 	  	 	 	1,730 	  	 	 	1,111 	  	 	 	1,492 	  	 	 	2,975 	  	
Deferred financing cost amortization	 	 	663 	  	 	 	590 	  	 	 	803 	  	 	 	649 	  	 	 	879 	  	 	 	2,056 	  	 	 	2,546 	  	
Amortization of fair market adjustments on notes payable	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	471 	  	 	 	-    	  	 	 	1,413 	  	
Straight-line effects of lease revenue	 	 	(4,193)	  	 	 	(5,477)	  	 	 	(1,565)	  	 	 	(5,019)	  	 	 	(4,129)	  	 	 	(11,236)	  	 	 	(4,488)	  	
Amortization of lease-related intangibles	 	 	(1,315)	  	 	 	(1,785)	  	 	 	(1,532)	  	 	 	(2,215)	  	 	 	(1,817)	  	 	 	(4,631)	  	 	 	(4,850)	  	
Income from amortization of discount on purchase of mezzanine loans	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	-    	  	 	 	(484)	  	
Acquisition costs	 	 	(7)	  	 	 	(84)	  	 	 	3 	  	 	 	(372)	  	 	 	(285)	  	 	 	(88)	  	 	 	(975)	  	
 	 	 	 	 	 	 	 	
Non-incremental capital expenditures	 	 	(38,583)	  	 	 	(17,781)	  	 	 	(8,066)	  	 	 	(15,392)	  	 	 	(14,529)	  	 	 	(64,430)	  	 	 	(45,009)	  	

Adjusted funds from operations	 	$	20,351 	  	 	$	36,216 	  	 	$	50,113 	  	 	$	44,728 	  	 	$	50,988 	  	 	$	106,680 	  	 	$	157,877 	  	

38

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	 	Nine Months Ended	 	
 	 	 	 	 	 	 	 	 	
 	 	    9/30/2012    	 	 	    6/30/2012    	 	 	    3/31/2012    	 	 	    12/31/2011    	 	 	    9/30/2011    	 	 	    9/30/2012    	 	 	9/30/2011    	 	
 	 	 	 	 	 	 	 	
Net income attributable to Piedmont	 	$	10,831  	  	 	$	30,708  	  	 	$	37,227  	  	 	$	119,020  	  	 	$	51,026  	  	 	$	78,766  	  	 	$	106,020  	  	
 	 	 	 	 	 	 	 	
Net income attributable to noncontrolling interest	 	 	4  	  	 	 	4  	  	 	 	4  	  	 	 	91  	  	 	 	135  	  	 	 	12  	  	 	 	378  	  	
Interest expense	 	 	16,247  	  	 	 	15,943  	  	 	 	16,537  	  	 	 	17,457  	  	 	 	17,804  	  	 	 	48,727  	  	 	 	54,291  	  	
(Gain) / loss on extinguishment of debt	 	 	-      	  	 	 	-      	  	 	 	-      	  	 	 	(1,039) 	  	 	 	-      	  	 	 	-      	  	 	 	-      	  	
Depreciation	 	 	28,959  	  	 	 	28,141  	  	 	 	27,902  	  	 	 	27,364  	  	 	 	28,186  	  	 	 	85,002  	  	 	 	83,557  	  	
Amortization	 	 	15,366  	  	 	 	11,539  	  	 	 	12,840  	  	 	 	15,531  	  	 	 	16,616  	  	 	 	39,744  	  	 	 	44,601  	  	
Impairment loss	 	 	-      	  	 	 	-      	  	 	 	-      	  	 	 	-      	  	 	 	-      	  	 	 	-      	  	 	 	-      	  	
Litigation settlement expense	 	 	7,500  	  	 	 	-      	  	 	 	-      	  	 	 	-      	  	 	 	-      	  	 	 	7,500  	  	 	 	-      	  	
(Gain) / loss on sale of properties	 	 	254  	  	 	 	(10,008) 	  	 	 	(17,830) 	  	 	 	(95,901) 	  	 	 	(26,826) 	  	 	 	(27,583) 	  	 	 	(26,872) 	  	
(Gain) / loss on consolidation of VIE	 	 	-      	  	 	 	-      	  	 	 	-      	  	 	 	-      	  	 	 	-      	  	 	 	-      	  	 	 	(1,532) 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core EBITDA	 	 	79,161  	  	 	 	76,327  	  	 	 	76,680  	  	 	 	82,523  	  	 	 	86,941  	  	 	 	232,168  	  	 	 	260,443  	  	
 	 	 	 	 	 	 	 	
General & administrative expenses	 	 	5,576  	  	 	 	4,866  	  	 	 	5,318  	  	 	 	6,241  	  	 	 	4,747  	  	 	 	15,760  	  	 	 	18,843  	  	
Management fee revenue	 	 	(520) 	  	 	 	(626) 	  	 	 	(574) 	  	 	 	(281) 	  	 	 	(110) 	  	 	 	(1,719) 	  	 	 	(1,303) 	  	
Interest and other income	 	 	(383) 	  	 	 	(305) 	  	 	 	(97) 	  	 	 	357  	  	 	 	74  	  	 	 	(785) 	  	 	 	(3,132) 	  	
Lease termination income	 	 	(75) 	  	 	 	(88) 	  	 	 	(123) 	  	 	 	(320) 	  	 	 	33  	  	 	 	(287) 	  	 	 	(4,718) 	  	
Lease termination expense - straight line rent & acquisition intangibles write-offs	 	 	122  	  	 	 	165  	  	 	 	99  	  	 	 	186  	  	 	 	260  	  	 	 	385  	  	 	 	739  	  	
Straight-line effects of lease revenue	 	 	(4,337) 	  	 	 	(5,642) 	  	 	 	(1,664) 	  	 	 	(5,180) 	  	 	 	(4,296) 	  	 	 	(11,643) 	  	 	 	(4,963) 	  	
Net effect of amortization of above/(below) market in-place lease intangibles	 	 	(1,293) 	  	 	 	(1,785) 	  	 	 	(1,532) 	  	 	 	(2,239) 	  	 	 	(1,911) 	  	 	 	(4,609) 	  	 	 	(5,115) 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Core net operating income - Cash Basis	 	 	78,251  	  	 	 	72,912  	  	 	 	78,107  	  	 	 	81,287  	  	 	 	85,738  	  	 	 	229,270  	  	 	 	260,794  	  	
 	 	 	 	 	 	 	 	
Net operating income from:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Acquisitions	 	 	(3,576) 	  	 	 	(3,886) 	  	 	 	(3,150) 	  	 	 	(4,489) 	  	 	 	(3,393) 	  	 	 	(10,612) 	  	 	 	(6,837) 	  	
Dispositions	 	 	(321) 	  	 	 	(541) 	  	 	 	(1,637) 	  	 	 	(6,363) 	  	 	 	(7,699) 	  	 	 	(2,499) 	  	 	 	(23,051) 	  	
Unconsolidated joint ventures	 	 	(735) 	  	 	 	(598) 	  	 	 	(590) 	  	 	 	(1,013) 	  	 	 	(818) 	  	 	 	(1,923) 	  	 	 	(2,172) 	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Same Store NOI - Cash Basis	 	$	73,619  	  	 	$	67,887  	  	 	$	72,730  	  	 	$	69,422  	  	 	$	73,828  	  	 	$	214,236  	  	 	$	228,734  	  	

 
39

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Three Months Ended	 	 	Nine Months Ended	 	
 	  	9/30/2012	 	  	6/30/2012	 	 	3/31/2012	 	  	12/31/2011	 	  	9/30/2011	 	 	9/30/2012	 	 	9/30/2011	 	
 	 	 	 	 	 	 	 	
Equity in Income of Unconsolidated JVs	  	  $	 322	  	  	  $	 246	  	 	  $	 170	  	  	  $	587	  	  	  $	 485	  	 	  $	739	  	 	  $	 1,032	  	
 	 	 	 	 	 	 	 	
Interest expense	  	 	-  	  	  	 	-  	  	 	 	-  	  	  	 	-  	  	  	 	-  	  	 	 	-  	  	 	 	-  	  	
 	 	 	 	 	 	 	 	
Depreciation	  	 	307	  	  	 	300	  	 	 	296	  	  	 	293	  	  	 	296	  	 	 	902	  	 	 	897	  	
 	 	 	 	 	 	 	 	
Amortization	  	 	41	  	  	 	41	  	 	 	41	  	  	 	33	  	  	 	33	  	 	 	123	  	 	 	97	  	
 	 	 	 	 	 	 	 	
(Gain) / loss on sale of properties	  	 	-  	  	  	 	-  	  	 	 	-  	  	  	 	-  	  	  	 	(71	) 	 	 	-  	  	 	 	(116	) 	

Core EBITDA	  	 	670	  	  	 	587	  	 	 	507	  	  	 	913	  	  	 	743	  	 	 	1,764	  	 	 	1,910	  	
 	 	 	 	 	 	 	 	
General & administrative expenses	  	 	30	  	  	 	(3	) 	 	 	57	  	  	 	49	  	  	 	30	  	 	 	84	  	 	 	132	  	
 	 	 	 	 	 	 	 	
Interest and other income	  	 	-  	  	  	 	(21	) 	 	 	-  	  	  	 	-  	  	  	 	(1	) 	 	 	(21	) 	 	 	(1	) 	

Core net operating income (accrual basis)	  	 	700	  	  	 	563	  	 	 	564	  	  	 	962	  	  	 	772	  	 	 	1,827	  	 	 	2,041	  	
 	 	 	 	 	 	 	 	
Straight-line effects of lease revenue	  	 	35	  	  	 	35	  	 	 	26	  	  	 	51	  	  	 	46	  	 	 	96	  	 	 	131	  	
 	 	 	 	 	 	 	 	
Net effect of amortization of above/(below) market in-place lease intangibles	  	 	-  	  	  	 	-  	  	 	 	-  	  	  	 	-  	  	  	 	-  	  	 	 	-  	  	 	 	-  	  	

Core net operating income (cash basis)	  	  $	735	  	  	  $	598	  	 	  $	590	  	  	  $	1,013	  	  	  $	818	  	 	  $	1,923	  	 	  $	2,172	  	

40

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

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

Revenues:	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
Rental income	  	  $	        434	  	 	  $	898	  	  	  $	1,613	  	  	  $	7,946	  	 	  $	9,234	  	 	  $	2,945	  	  	  $	29,941	  	
Tenant reimbursements	  	 	73	  	 	 	104	  	  	 	292	  	  	 	4,396	  	 	 	3,790	  	 	 	469	  	  	 	14,967	  	
Property management fee revenue	  	 	-    	  	 	 	-    	  	  	 	-    	  	  	 	-    	  	 	 	-    	  	 	 	-    	  	  	 	-    	  	
Other rental income	  	 	-    	  	 	 	-    	  	  	 	-    	  	  	 	-    	  	 	 	(46	) 	 	 	-    	  	  	 	303	  	
 	  	 	 	 	 	 	 	 	
Total revenues	  	 	507	  	 	 	1,002	  	  	 	1,905	  	  	 	12,342	  	 	 	12,978	  	 	 	3,414	  	  	 	45,211	  	
 	 	 	 	 	 	 	 	
Operating expenses:	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
Property operating costs	  	 	100	  	 	 	197	  	  	 	269	  	  	 	4,814	  	 	 	3,758	  	 	 	566	  	  	 	16,762	  	
Depreciation	  	 	163	  	 	 	255	  	  	 	430	  	  	 	459	  	 	 	2,000	  	 	 	848	  	  	 	6,467	  	
Amortization	  	 	22	  	 	 	53	  	  	 	74	  	  	 	112	  	 	 	1,776	  	 	 	148	  	  	 	5,406	  	
General and administrative	  	 	38	  	 	 	5	  	  	 	3	  	  	 	(13	) 	 	 	(14	) 	 	 	47	  	  	 	(157	) 	
 	  	 	 	 	 	 	 	 	
Total operating expenses	  	 	323	  	 	 	510	  	  	 	776	  	  	 	5,372	  	 	 	7,520	  	 	 	1,609	  	  	 	28,478	  	
 	 	 	 	 	 	 	 	
Interest expense	  	 	—  	  	 	 	—  	  	  	 	—  	  	  	 	(1,278	) 	 	 	(1,568	) 	 	 	—  	  	  	 	(4,653	) 	
Interest and other income (expense)	  	 	—  	  	 	 	—  	  	  	 	—  	  	  	 	—  	  	 	 	16	  	 	 	—  	  	  	 	1	  	
Net income attributable to noncontrolling interest	  	 	—  	  	 	 	—  	  	  	 	—  	  	  	 	(87	) 	 	 	(131	) 	 	 	—  	  	  	 	(366	) 	
 	  	 	 	 	 	 	 	 	
Total other income (expense)	  	 	—  	  	 	 	—  	  	  	 	—  	  	  	 	(1,365	) 	 	 	(1,683	) 	 	 	—  	  	  	 	(5,018	) 	
 	 	 	 	 	 	 	 	
  Operating income, excluding impairment loss and gain on sale	  	 	184	  	 	 	492	  	  	 	1,129	  	  	 	5,605	  	 	 	3,775	  	 	 	1,805	  	  	 	11,715	  	
Gain / (loss) on sale of properties	  	 	(254	) 	 	 	10,008	  	  	 	17,830	  	  	 	95,901	  	 	 	26,756	  	 	 	27,583	  	  	 	26,756	  	

Income from discontinued operations	  	  $	(70	) 	 	  $	        10,500	  	  	  $	        18,959	  	  	  $	        101,506	  	 	  $	        30,531	  	 	  $	        29,388	  	  	  $	        38,471	  	

41

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Building Name	  	City	  	State	  	Percent
Ownership	 	 	Year
Built	 	  	Rentable
Square
Footage
Owned (in
thousands)	 	  	Leased
Percentage	 	 	Commenced
Leased
Percentage	 	 	Economic
Leased
Percentage   (1)	 	
 	 	 	 	 	 	 	 	 	
Atlanta	  	 	  	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
11695 Johns Creek Parkway	  	Johns Creek	  	GA	  	 	100.0	% 	 	 	2001	  	  	 	101	  	  	 	91.1	% 	 	 	91.1	% 	 	 	88.1	% 	
3750 Brookside Parkway	  	Alpharetta	  	GA	  	 	100.0	% 	 	 	2001	  	  	 	103	  	  	 	91.3	% 	 	 	91.3	% 	 	 	91.3	% 	
Glenridge Highlands Two	  	Atlanta	  	GA	  	 	100.0	% 	 	 	2000	  	  	 	406	  	  	 	73.6	% 	 	 	71.2	% 	 	 	69.7	% 	
Suwanee Gateway One	  	Suwanee	  	GA	  	 	100.0	% 	 	 	2008	  	  	 	142	  	  	 	0.0	% 	 	 	0.0	% 	 	 	0.0	% 	
The Dupree	  	Atlanta	  	GA	  	 	100.0	% 	 	 	1997	  	  	 	138	  	  	 	82.6	% 	 	 	82.6	% 	 	 	82.6	% 	
The Medici	  	Atlanta	  	GA	  	 	100.0	% 	 	 	2008	  	  	 	152	  	  	 	23.0	% 	 	 	23.0	% 	 	 	13.2	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	 	 	 	 	 	 	  	 	1,042	  	  	 	60.8	% 	 	 	59.9	% 	 	 	57.6	% 	
 	 	 	 	 	 	 	 	 	
Austin	  	 	  	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
Braker Pointe III	  	Austin	  	TX	  	 	100.0	% 	 	 	2001	  	  	 	195	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	 	 	 	 	 	 	  	 	195	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
 	 	 	 	 	 	 	 	 	
Boston	  	 	  	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
1200 Crown Colony Drive	  	Quincy	  	MA	  	 	100.0	% 	 	 	1990	  	  	 	235	  	  	 	100.0	% 	 	 	100.0	% 	 	 	22.1	% 	
90 Central Street	  	Boxborough	  	MA	  	 	100.0	% 	 	 	2001	  	  	 	175	  	  	 	97.1	% 	 	 	97.1	% 	 	 	97.1	% 	
1414 Massachusetts Avenue	  	Cambridge	  	MA	  	 	100.0	% 	 	 	1873	  	  	 	78	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
One Brattle Square	  	Cambridge	  	MA	  	 	100.0	% 	 	 	1991	  	  	 	95	  	  	 	94.7	% 	 	 	94.7	% 	 	 	94.7	% 	
225 Presidential Way	  	Woburn	  	MA	  	 	100.0	% 	 	 	2001	  	  	 	202	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
235 Presidential Way	  	Woburn	  	MA	  	 	100.0	% 	 	 	2000	  	  	 	238	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	 	 	 	 	 	 	  	 	1,023	  	  	 	99.0	% 	 	 	99.0	% 	 	 	81.1	% 	
 	 	 	 	 	 	 	 	 	
Chicago	  	 	  	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
Windy Point I	  	Schaumburg	  	IL	  	 	100.0	% 	 	 	1999	  	  	 	187	  	  	 	100.0	% 	 	 	100.0	% 	 	 	88.2	% 	
Windy Point II	  	Schaumburg	  	IL	  	 	100.0	% 	 	 	2001	  	  	 	301	  	  	 	100.0	% 	 	 	0.0	% 	 	 	0.0	% 	
Aon Center	  	Chicago	  	IL	  	 	100.0	% 	 	 	1972	  	  	 	2,688	  	  	 	80.6	% 	 	 	80.4	% 	 	 	68.3	% 	
Two Pierce Place	  	Itasca	  	IL	  	 	100.0	% 	 	 	1991	  	  	 	486	  	  	 	80.9	% 	 	 	77.4	% 	 	 	76.1	% 	
2300 Cabot Drive	  	Lisle	  	IL	  	 	100.0	% 	 	 	1998	  	  	 	152	  	  	 	75.0	% 	 	 	75.0	% 	 	 	75.0	% 	
500 West Monroe Street	  	Chicago	  	IL	  	 	100.0	% 	 	 	1991	  	  	 	963	  	  	 	59.2	% 	 	 	46.7	% 	 	 	43.4	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	 	 	 	 	 	 	  	 	4,777	  	  	 	78.1	% 	 	 	68.9	% 	 	 	60.8	% 	
 	 	 	 	 	 	 	 	 	
Cleveland	  	 	  	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
Eastpoint I	  	Mayfield Heights	  	OH	  	 	100.0	% 	 	 	2000	  	  	 	102	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
Eastpoint II	  	Mayfield Heights	  	OH	  	 	100.0	% 	 	 	2000	  	  	 	85	  	  	 	88.2	% 	 	 	88.2	% 	 	 	88.2	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	 	 	 	 	 	 	  	 	187	  	  	 	94.7	% 	 	 	94.7	% 	 	 	94.7	% 	
 	 	 	 	 	 	 	 	 	
Dallas	  	 	  	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
3900 Dallas Parkway	  	Plano	  	TX	  	 	100.0	% 	 	 	1999	  	  	 	120	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
5601 Headquarters Drive	  	Plano	  	TX	  	 	100.0	% 	 	 	2001	  	  	 	166	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
6031 Connection Drive	  	Irving	  	TX	  	 	100.0	% 	 	 	1999	  	  	 	229	  	  	 	95.6	% 	 	 	92.1	% 	 	 	90.4	% 	
6021 Connection Drive	  	Irving	  	TX	  	 	100.0	% 	 	 	2000	  	  	 	223	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
6011 Connection Drive	  	Irving	  	TX	  	 	100.0	% 	 	 	1999	  	  	 	152	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
Las Colinas Corporate Center I	  	Irving	  	TX	  	 	100.0	% 	 	 	1998	  	  	 	159	  	  	 	89.9	% 	 	 	89.9	% 	 	 	40.9	% 	
Las Colinas Corporate Center II	  	Irving	  	TX	  	 	100.0	% 	 	 	1998	  	  	 	227	  	  	 	59.5	% 	 	 	58.1	% 	 	 	53.3	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	 	 	 	 	 	 	  	 	1,276	  	  	 	90.8	% 	 	 	89.9	% 	 	 	82.6	% 	
 	 	 	 	 	 	 	 	 	
Denver	  	 	  	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
350 Spectrum Loop	  	Colorado Springs	  	CO	  	 	100.0	% 	 	 	2001	  	  	 	156	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	 	 	 	 	 	 	  	 	156	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
 	 	 	 	 	 	 	 	 	
Detroit	  	 	  	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
1441 West Long Lake Road	  	Troy	  	MI	  	 	100.0	% 	 	 	1999	  	  	 	107	  	  	 	81.3	% 	 	 	79.4	% 	 	 	76.6	% 	
150 West Jefferson	  	Detroit	  	MI	  	 	100.0	% 	 	 	1989	  	  	 	493	  	  	 	74.2	% 	 	 	74.2	% 	 	 	73.8	% 	
Auburn Hills Corporate Center	  	Auburn Hills	  	MI	  	 	100.0	% 	 	 	2001	  	  	 	120	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
1075 West Entrance Drive	  	Auburn Hills	  	MI	  	 	100.0	% 	 	 	2001	  	  	 	210	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	 	 	 	 	 	 	  	 	930	  	  	 	84.2	% 	 	 	84.0	% 	 	 	83.4	% 	
 	 	 	 	 	 	 	 	 	
Central & South Florida	  	 	  	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
Sarasota Commerce Center II	  	Sarasota	  	FL	  	 	100.0	% 	 	 	1999	  	  	 	152	  	  	 	99.3	% 	 	 	84.9	% 	 	 	67.1	% 	
5601 Hiatus Road	  	Tamarac	  	FL	  	 	100.0	% 	 	 	2001	  	  	 	100	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
2001 NW 64th Street	  	Ft. Lauderdale	  	FL	  	 	100.0	% 	 	 	2001	  	  	 	48	  	  	 	100.0	% 	 	 	100.0	% 	 	 	85.4	% 	
400 TownPark	  	Lake Mary	  	FL	  	 	100.0	% 	 	 	2008	  	  	 	176	  	  	 	34.1	% 	 	 	34.1	% 	 	 	31.3	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	 	 	 	 	 	 	  	 	476	  	  	 	75.4	% 	 	 	70.8	% 	 	 	62.6	% 	
 	 	 	 	 	 	 	 	 	
Houston	  	 	  	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
1430 Enclave Parkway	  	Houston	  	TX	  	 	100.0	% 	 	 	1994	  	  	 	313	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
1200 Enclave Parkway	  	Houston	  	TX	  	 	100.0	% 	 	 	1999	  	  	 	150	  	  	 	98.7	% 	 	 	98.7	% 	 	 	9.3	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	 	 	 	 	 	 	  	 	463	  	  	 	99.6	% 	 	 	99.6	% 	 	 	70.6	% 	
 
42

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

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Building Name	  	City	  	State	  	Percent
Ownership	 	 	Year
Built	 	  	Rentable
Square
Footage
Owned (in
thousands)	 	  	Leased
Percentage	 	 	Commenced
Leased
Percentage	 	 	Economic
Leased
Percentage   (1)	 	
 	 	 	 	 	 	 	 	 	
Los Angeles	  	 	  	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
800 North Brand Boulevard	  	Glendale	  	CA	  	 	100.0	% 	 	 	1990	  	  	 	518	  	  	 	80.3	% 	 	 	80.3	% 	 	 	80.3	% 	
1055 East Colorado Boulevard	  	Pasadena	  	CA	  	 	100.0	% 	 	 	2001	  	  	 	175	  	  	 	98.9	% 	 	 	61.7	% 	 	 	61.7	% 	
Fairway Center II	  	Brea	  	CA	  	 	100.0	% 	 	 	2002	  	  	 	134	  	  	 	97.8	% 	 	 	95.5	% 	 	 	95.5	% 	
1901 Main Street	  	Irvine	  	CA	  	 	100.0	% 	 	 	2001	  	  	 	172	  	  	 	86.6	% 	 	 	86.6	% 	 	 	80.8	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	 	 	 	  	 	999	  	  	 	87.0	% 	 	 	80.2	% 	 	 	79.2	% 	
 	 	 	 	 	 	 	 	 	
Minneapolis	  	 	  	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
Crescent Ridge II	  	Minnetonka	  	MN	  	 	100.0	% 	 	 	2000	  	  	 	301	  	  	 	74.8	% 	 	 	74.8	% 	 	 	74.8	% 	
US Bancorp Center	  	Minneapolis	  	MN	  	 	100.0	% 	 	 	2000	  	  	 	928	  	  	 	95.6	% 	 	 	95.6	% 	 	 	90.7	% 	
One Meridian Crossings	  	Richfield	  	MN	  	 	100.0	% 	 	 	1997	  	  	 	195	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
Two Meridian Crossings	  	Richfield	  	MN	  	 	100.0	% 	 	 	1998	  	  	 	189	  	  	 	91.5	% 	 	 	91.5	% 	 	 	91.0	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	 	 	 	  	 	1,613	  	  	 	91.8	% 	 	 	91.8	% 	 	 	88.9	% 	
 	 	 	 	 	 	 	 	 	
Nashville	  	 	  	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
2120 West End Avenue	  	Nashville	  	TN	  	 	100.0	% 	 	 	2000	  	  	 	312	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	 	 	 	  	 	312	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
 	 	 	 	 	 	 	 	 	
New York	  	 	  	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
1111 Durham Avenue	  	South
Plainfield	  	NJ	  	 	100.0	% 	 	 	1975	  	  	 	237	  	  	 	61.2	% 	 	 	61.2	% 	 	 	61.2	% 	
2 Gatehall Drive	  	Parsippany	  	NJ	  	 	100.0	% 	 	 	1985	  	  	 	405	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
200 Bridgewater Crossing	  	Bridgewater	  	NJ	  	 	100.0	% 	 	 	2002	  	  	 	299	  	  	 	73.6	% 	 	 	26.4	% 	 	 	19.7	% 	
Copper Ridge Center	  	Lyndhurst	  	NJ	  	 	100.0	% 	 	 	1989	  	  	 	268	  	  	 	96.3	% 	 	 	96.3	% 	 	 	96.3	% 	
60 Broad Street	  	New York	  	NY	  	 	100.0	% 	 	 	1962	  	  	 	1,027	  	  	 	99.3	% 	 	 	99.1	% 	 	 	99.1	% 	
600 Corporate Drive	  	Lebanon	  	NJ	  	 	100.0	% 	 	 	2005	  	  	 	125	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
400 Bridgewater Crossing	  	Bridgewater	  	NJ	  	 	100.0	% 	 	 	2002	  	  	 	297	  	  	 	99.7	% 	 	 	99.7	% 	 	 	99.7	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	 	 	 	  	 	2,658	  	  	 	92.9	% 	 	 	87.5	% 	 	 	86.8	% 	
 	 	 	 	 	 	 	 	 	
Philadelphia	  	 	  	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
1901 Market Street	  	Philadelphia	  	PA	  	 	100.0	% 	 	 	1987	  	  	 	761	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	 	 	 	  	 	761	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
 	 	 	 	 	 	 	 	 	
Phoenix	  	 	  	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
River Corporate Center	  	Tempe	  	AZ	  	 	100.0	% 	 	 	1998	  	  	 	133	  	  	 	100.0	% 	 	 	100.0	% 	 	 	0.0	% 	
8700 South Price Road	  	Tempe	  	AZ	  	 	100.0	% 	 	 	2000	  	  	 	132	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
Desert Canyon 300	  	Phoenix	  	AZ	  	 	100.0	% 	 	 	2001	  	  	 	149	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
Chandler Forum	  	Chandler	  	AZ	  	 	100.0	% 	 	 	2003	  	  	 	150	  	  	 	42.0	% 	 	 	42.0	% 	 	 	42.0	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	 	 	 	  	 	564	  	  	 	84.6	% 	 	 	84.6	% 	 	 	61.0	% 	
 	 	 	 	 	 	 	 	 	
Washington, D.C.	  	 	  	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
11107 Sunset Hills Road	  	Reston	  	VA	  	 	100.0	% 	 	 	1985	  	  	 	101	  	  	 	100.0	% 	 	 	98.0	% 	 	 	98.0	% 	
1201 Eye Street	  	Washington	  	DC	  	 	49.5	% (2) 	 	 	2001	  	  	 	269	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
1225 Eye Street	  	Washington	  	DC	  	 	49.5	% (2) 	 	 	1986	  	  	 	225	  	  	 	87.6	% 	 	 	87.6	% 	 	 	78.7	% 	
3100 Clarendon Boulevard	  	Arlington	  	VA	  	 	100.0	% 	 	 	1987	  	  	 	250	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
400 Virginia Avenue	  	Washington	  	DC	  	 	100.0	% 	 	 	1985	  	  	 	224	  	  	 	89.3	% 	 	 	89.3	% 	 	 	89.3	% 	
4250 North Fairfax Drive	  	Arlington	  	VA	  	 	100.0	% 	 	 	1998	  	  	 	305	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
9211 Corporate Boulevard	  	Rockville	  	MD	  	 	100.0	% 	 	 	1989	  	  	 	115	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
9221 Corporate Boulevard	  	Rockville	  	MD	  	 	100.0	% 	 	 	1989	  	  	 	115	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
One Independence Square	  	Washington	  	DC	  	 	100.0	% 	 	 	1991	  	  	 	334	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
9200 Corporate Boulevard	  	Rockville	  	MD	  	 	100.0	% 	 	 	1982	  	  	 	109	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
11109 Sunset Hills Road	  	Reston	  	VA	  	 	100.0	% 	 	 	1984	  	  	 	41	  	  	 	0.0	% 	 	 	0.0	% 	 	 	0.0	% 	
Two Independence Square	  	Washington	  	DC	  	 	100.0	% 	 	 	1991	  	  	 	561	  	  	 	100.0	% 	 	 	100.0	% 	 	 	100.0	% 	
Piedmont Pointe I	  	Bethesda	  	MD	  	 	100.0	% 	 	 	2007	  	  	 	186	  	  	 	68.8	% 	 	 	65.6	% 	 	 	65.6	% 	
Piedmont Pointe II	  	Bethesda	  	MD	  	 	100.0	% 	 	 	2008	  	  	 	221	  	  	 	50.2	% 	 	 	50.2	% 	 	 	19.0	% 	
Metropolitan Area Subtotal / Weighted Average	  	 	 	 	 	  	 	3,056	  	  	 	91.5	% 	 	 	91.2	% 	 	 	88.3	% 	
 
Grand Total
 	  	 	  	 	  	 	 	 	 	 	 	 	  	 
 	20,488

 	87.0
 	% 
 	 	 
 	83.6
 	% 
 	 	 
 	77.9
 	% 
 	
(1) Economic leased percentage excludes the square footage associated with executed but not commenced leases for currently vacant spaces and the square footage associated with tenants receiving rental abatements (after proportionate adjustments for tenants receiving only partial rent abatements).
(2) Although Piedmont owns 49.5% of the asset, it is entitled to 100% of the cash flows under the terms of the property ownership entity's joint venture agreement.
 
43

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

 	
 	
Certain statements contained in this supplemental package constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We intend for all such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, as applicable. Such information is subject to certain risks and uncertainties, as well as known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of our performance in future periods. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “continue” or similar words or phrases that are predictions of future events or trends and which do not relate solely to historical matters.
 
The following are some of the factors that could cause our actual results and expectations to differ materially from those described in our forward-looking statements: our ability to successfully identify and consummate suitable acquisitions; the demand for office space, rental rates and property values may continue to lag the general economic recovery; lease terminations or lease defaults, particularly by one of our large lead tenants; the impact of competition on our efforts to renew existing leases or re-let space; changes in the economies and other conditions of the office market in general and of the specific markets in which we operate; economic and regulatory changes; additional risks and costs associated with directly managing properties occupied by government tenants; adverse market and economic conditions and related impairments to our assets, including, but not limited to, receivables, real estate assets and other intangible assets; availability of financing; costs of complying with governmental laws and regulations; uncertainties associated with environmental and other regulatory matters; potential changes in the political environment and reduction in federal and/or state funding of our government tenants; we are and may continue to be subject to litigation; our ability to continue to qualify as a REIT under the Internal Revenue Code; and other factors detailed in our most recent Annual Report on Form 10-K and other documents we file with the Securities and Exchange Commission.
 
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this supplemental report. We cannot guarantee the accuracy of any such forward-looking statements contained in this supplemental report, and we do not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.	
 
44