Piedmont Realty Trust, Inc.PDM
Piedmont Realty Trust, Inc. Debt Disclosure
Debt
During the year ended December 31, 2025, Piedmont, through Piedmont OP, issued $400 million in aggregate principal amount of 5.63% senior notes (the "$400 Million Unsecured Senior Notes"), which mature on January 15, 2033. Upon issuance of the $400 Million Unsecured Senior Notes, Piedmont OP received net proceeds of $397.5 million, reflecting a discount of approximately $2.5 million which will be amortized to interest expense over the seven-year term of the $400 Million Unsecured Senior Notes using the effective interest method. The $400 Million Unsecured Senior Notes are fully and unconditionally guaranteed by Piedmont. Interest on the $400 Million Unsecured Senior Notes is payable semi-annually on January 15 and July 15 of each year commencing January 15, 2026.
During the year ended December 31, 2025, Piedmont repurchased an aggregate principal amount of approximately $312.7 million of the aggregate principal amount of its $600 Million Senior Unsecured Notes due 2028, resulting in the recognition of an approximately $37.3 million loss on early extinguishment of debt.
During the year ended December 31, 2025, Piedmont, through Piedmont OP, amended its $600 Million Unsecured 2022 Line of Credit and its $325 Million Unsecured 2024 Term Loan to remove the credit spread adjustment from SOFR-based interest rates thereby reducing its all-in interest rates on each facility by 10 basis points.
During the year ended December 31, 2025, Piedmont amended the $200 Million Unsecured 2024 Term Loan (as amended, the "$325 Million Unsecured 2024 Term Loan") to increase the principal amount of the loan by $125 million to a total of $325 million and to add two six-month extension options for a final maturity date of January 29, 2028, provided that Piedmont is not in default as of the extension date and upon payment of extension fees. The net proceeds from the $325 Million Unsecured 2024 Term Loan and Piedmont's $600 Million Unsecured 2022 Line of Credit, along with cash on hand, were used to repay the $250 Million Unsecured 2018 Term Loan that was scheduled to mature in March of 2025. In conjunction with this repayment, Piedmont recognized a loss of approximately $0.5 million as a result of expensing unamortized financing costs due to the early extinguishment of debt.
Finally, during the year ended December 31, 2025, Piedmont recast the $600 Million Unsecured 2022 Line of Credit to extend the maturity date to June 30, 2028, with two additional one-year extension options, for a final maturity date of June 30, 2030, provided that Piedmont is not in default as of the extension date and upon payment of extension fees.
The following table summarizes the terms of Piedmont’s indebtedness outstanding as of December 31, 2025 and 2024, including net discounts/premiums and unamortized debt issuance costs (in thousands):
Facility (1) | Stated Rate | Effective Rate (2) | Maturity | Amount Outstanding as of | ||||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||||
| Secured (Fixed) | ||||||||||||||||||||||||||||||||
$197 Million Fixed-Rate Mortgage | 4.10 | % | 4.10 | % | 10/1/2028 | $ | 188,822 | $ | 192,423 | |||||||||||||||||||||||
| 188,822 | 192,423 | |||||||||||||||||||||||||||||||
| Unsecured (Variable and Fixed) | ||||||||||||||||||||||||||||||||
$250 Million Unsecured 2018 Term Loan | SOFR + 1.20% | 4.79 | % | 3/31/2025 | — | 250,000 | ||||||||||||||||||||||||||
$600 Million Unsecured 2022 Line of Credit | SOFR + 1.05% | (3) | 4.92 | % | (4) | 6/30/2028 | (5) | 47,000 | — | |||||||||||||||||||||||
$325 Million Unsecured 2024 Term Loan | SOFR + 1.30% | (3) | 5.38 | % | (6) | 1/29/2027 | (7) | 325,000 | 200,000 | |||||||||||||||||||||||
$600 Million Unsecured Senior Notes due 2028 | 9.25 | % | 9.25 | % | 7/20/2028 | 287,258 | 600,000 | |||||||||||||||||||||||||
$400 Million Unsecured Senior Notes due 2029 | 6.88 | % | 7.11 | % | 7/15/2029 | 400,000 | 400,000 | |||||||||||||||||||||||||
$300 Million Unsecured Senior Notes due 2030 | 3.15 | % | 3.90 | % | 8/15/2030 | 300,000 | 300,000 | |||||||||||||||||||||||||
$300 Million Unsecured Senior Notes due 2032 | 2.75 | % | 2.78 | % | 4/1/2032 | 300,000 | 300,000 | |||||||||||||||||||||||||
$400 Million Unsecured Senior Notes due 2033 | 5.63 | % | 5.73 | % | 1/15/2033 | 400,000 | — | |||||||||||||||||||||||||
Discounts and unamortized debt issuance costs | (23,368) | (20,077) | ||||||||||||||||||||||||||||||
Subtotal/Weighted Average | 5.72 | % | 2,035,890 | 2,029,923 | ||||||||||||||||||||||||||||
Total/Weighted Average | 5.58 | % | $ | 2,224,712 | $ | 2,222,346 | ||||||||||||||||||||||||||
(1)All of Piedmont’s outstanding debt as of December 31, 2025 is unsecured and interest-only until maturity, except for the $197 Million Fixed Rate Mortgage secured by 1180 Peachtree Street.
(2)Effective rate after consideration of settled or in-place interest rate swap agreements and issuance discounts.
(3)The all-in interest rates associated for the SOFR selections are comprised of the basic SOFR interest rate and a stated interest rate spread that can vary from 0.72% to 1.40% on the $600 Million Unsecured 2022 Line of Credit and 0.85% to 1.7% on the $325 Million Unsecured 2024 Term Loan based upon the then current credit rating (as defined in the respective loan agreement) of Piedmont or Piedmont OP.
(4)On a periodic basis, Piedmont may select from multiple interest rate options, including the prime rate and various-length SOFR locks on all or a portion of the principal.
(5)Piedmont may extend the term of the $600 Million Unsecured 2022 Line of Credit for up to additional years (through two available one-year extensions to a final extended maturity date of June 30, 2030); provided Piedmont is not then in default and upon payment of extension fees.
(6)This term loan has a stated variable rate; however Piedmont has entered into interest rate swap agreements which effectively fix the interest rate on the aggregate principal amount of the term loan to 5.38% through February 1, 2026, assuming no change in Piedmont's or Piedmont OP's credit rating. See Note 4 for disclosures of Piedmont's derivative instruments.
(7)Piedmont may extend the term for up to two six-month extension options for a final maturity date of January 29, 2028, provided Piedmont is not then in default and upon payment of extension fees.
A summary of Piedmont's consolidated principal outstanding for aggregate debt maturities of its indebtedness as of December 31, 2025, is provided below (in thousands):
| 2026 | $ | 3,433 | |||
| 2027 | 328,894 | ||||
| 2028 | 515,753 | ||||
| 2029 | 400,000 | ||||
| 2030 | 300,000 | ||||
| Thereafter | 700,000 | ||||
| Total | $ | 2,248,080 | |||
Piedmont’s weighted-average interest rate as of December 31, 2025 and 2024, for the aforementioned borrowings was approximately 5.58% and 6.01%, respectively. Piedmont made interest payments on all indebtedness, including interest rate swap cash settlements, of approximately $141.5 million, $117.5 million, and $81.0 million during the years ended December 31, 2025, 2024, and 2023, respectively. Also, Piedmont capitalized interest of approximately $10.9 million, $12.9 million, and $7.0 million for the years ended December 31, 2025, 2024, and 2023, respectively. As of December 31, 2025, Piedmont believes it was in compliance with all financial covenants associated with its debt instruments. See Note 5 for a description of Piedmont’s estimated fair value of debt as of December 31, 2025.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 17, 2026 | Showing above |
| 2015 | Feb 17, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.