Piedmont Office Realty Trust, Inc. reported a net loss applicable to common stockholders of approximately $79.1 million, or $0.64 per diluted share, for the fiscal year ending December 31, 2024. This represents a significant increase in losses compared to the previous year, which recorded a net loss of $48.4 million, or $0.39 per diluted share. The decline in financial performance was attributed to increased interest expenses, the sale of two properties, and downtime between the expiration of several large leases before new leases commenced. Total revenues for the year were approximately $570.3 million, down from $577.8 million in 2023, primarily due to a decrease in rental and tenant reimbursement revenue, which fell by $11.2 million.
In terms of operational metrics, Piedmont's portfolio consisted of 30 in-service projects and three redevelopment projects, totaling approximately 15.3 million square feet of Class A office space, with an occupancy rate of 88.4% as of December 31, 2024. This marks a slight increase from 87.1% in the previous year. The company completed approximately 2.4 million square feet of leasing during the year, including around one million square feet of new tenant leases. The average lease size was approximately 14,000 square feet, with an average remaining lease term of six years.
Strategically, Piedmont has focused on enhancing its portfolio through redevelopment and repositioning efforts, investing approximately $212.1 million in capital expenditures during 2024, compared to $158.2 million in 2023. This included significant upgrades to properties such as Galleria Towers in Dallas and The Exchange in Orlando. The company also emphasized sustainability, achieving recognition as an ENERGY STAR® Partner of the Year for the fourth consecutive year and maintaining a high percentage of LEED-certified properties.
Looking ahead, Piedmont has amended its debt facilities to improve liquidity and extend maturities, including a recent increase in its $200 million Unsecured 2024 Term Loan to $325 million. The company has also recast its $600 million Unsecured 2022 Line of Credit, extending its maturity to June 30, 2028. Despite the challenges faced in 2024, Piedmont remains committed to its strategy of maximizing shareholder returns through operational excellence and strategic acquisitions, while navigating the evolving landscape of the office real estate market.
About Piedmont Office Realty Trust, Inc.
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