Piedmont Office Realty (PDM) Q2 2026: Guidance Raised on Record Rents

Piedmont Office Realty Trust raised its full-year Core FFO guidance for the second consecutive quarter, powered by record-high rental rates and a 9% surge in same-store cash net operating income. Cash rent roll-ups came in at 14.1%, and the average net effective rent reached $25.56 per square foot, both pointing to sustained pricing power across its Class A Sun Belt portfolio. Revenue for the quarter came in at $144.1 million, essentially in line with the $144.3 million consensus estimate.

On a GAAP basis, the reported loss of $0.09 per share was wider than the estimated loss of $0.03, a gap that reflects the kind of non-cash charges — depreciation and amortization chief among them — that are common in REIT accounting and why the sector typically focuses on FFO as its core profitability measure. The GAAP miss is notable but does not tell the whole operational story here.

What stands out most for investors looking ahead is the leasing momentum: nearly 700,000 square feet of leases were either executed or in legal stage in July alone, well after the quarter closed. That pipeline suggests the positive rent-roll and NOI trends Piedmont is reporting are not a one-quarter phenomenon, making the two consecutive guidance raises a potentially meaningful signal about the durability of demand for premium office space in its target markets.