Piedmont Realty Trust, Inc.PDM
Piedmont Realty Trust, Inc. Segments Disclosure
Segment Information
Piedmont's President and Chief Executive Officer has been identified as Piedmont's CODM, as defined by GAAP. The CODM evaluates Piedmont's portfolio and assesses the ongoing operations and performance of its projects utilizing the following geographic segments: Atlanta, Dallas, Orlando, Northern Virginia/Washington, D.C., Minneapolis, New York, and Boston. These operating segments are also Piedmont’s reportable segments. As of December 31, 2025, Piedmont also owned two properties in Houston that do not meet the definition of an operating or reportable segment as the CODM does not regularly review these properties for purposes of allocating resources or assessing performance. Further, Piedmont does not maintain a significant presence nor anticipate further investment in this market. These two properties are the primary contributors to accrual-based net operating income ("NOI") included in "Other" below. During the periods presented, there have been no
material inter-segment transactions. The accounting policies of the reportable segments are the same as Piedmont's accounting policies.
NOI by geographic segment is the primary performance measure reviewed by Piedmont's CODM to assess operating performance and consists only of revenues and expenses directly related to real estate rental operations. NOI is calculated by deducting property operating costs and other segment items from lease revenues and other property related income. Other segment items consist primarily of allocated costs and salaries, which are recognized at the respective properties and eliminated in the preparation of consolidated financial statements. NOI reflects property acquisitions and dispositions, occupancy levels, rental rate increases or decreases, and the recoverability of operating expenses. Piedmont's calculation of NOI may not be directly comparable to similarly titled measures calculated by other REITs.
Asset value information and capital expenditures by segment are not reported because the CODM does not use these measures to assess performance.
The following table presents accrual-based revenues, expenses, and other segment items included in NOI by geographic reportable segment for the year ended December 31, 2025 (in thousands):
| Total Revenues | Property Operating Costs | Other Segment Items | NOI | ||||||||||||||||||||
| Atlanta | $ | 180,002 | $ | 65,960 | $ | 1,965 | $ | 116,007 | |||||||||||||||
| Dallas | 102,293 | 41,992 | 442 | 60,743 | |||||||||||||||||||
| Orlando | 65,816 | 26,987 | 197 | 39,026 | |||||||||||||||||||
| Northern Virginia/Washington, D.C. | 51,674 | 23,725 | 661 | 28,610 | |||||||||||||||||||
| Minneapolis | 45,190 | 22,596 | 706 | 23,300 | |||||||||||||||||||
| New York | 58,503 | 26,949 | 80 | 31,634 | |||||||||||||||||||
| Boston | 41,424 | 15,801 | 46 | 25,669 | |||||||||||||||||||
| Total reportable segments | 544,902 | 224,010 | 4,097 | 324,989 | |||||||||||||||||||
| Other | 20,092 | 3,864 | (3,990) | 12,238 | |||||||||||||||||||
| Totals | $ | 564,994 | $ | 227,874 | $ | 107 | $ | 337,227 | |||||||||||||||
The following table presents accrual-based revenues, expenses, and other segment items included in NOI by geographic reportable segment for the year ended December 31, 2024 (in thousands):
| Total Revenues | Property Operating Costs | Other Segment Items | NOI | ||||||||||||||||||||
| Atlanta | $ | 172,129 | $ | 63,211 | $ | 1,797 | $ | 110,715 | |||||||||||||||
| Dallas | 108,266 | 46,352 | 418 | 62,332 | |||||||||||||||||||
| Orlando | 59,542 | 25,836 | 154 | 33,860 | |||||||||||||||||||
| Northern Virginia/Washington, D.C. | 58,846 | 25,418 | 658 | 34,086 | |||||||||||||||||||
| Minneapolis | 48,578 | 25,655 | 630 | 23,553 | |||||||||||||||||||
| New York | 55,916 | 25,796 | 80 | 30,200 | |||||||||||||||||||
| Boston | 45,766 | 17,512 | 42 | 28,296 | |||||||||||||||||||
| Total reportable segments | 549,043 | 229,780 | 3,779 | 323,042 | |||||||||||||||||||
| Other | 21,281 | 4,344 | (4,439) | 12,498 | |||||||||||||||||||
| Totals | $ | 570,324 | $ | 234,124 | $ | (660) | $ | 335,540 | |||||||||||||||
The following table presents accrual-based revenues, expenses, and other segment items included in NOI by geographic reportable segment for the year ended December 31, 2023 (in thousands):
| Total Revenues | Property Operating Costs | Other Segment Items | NOI | ||||||||||||||||||||
| Atlanta | $ | 161,310 | $ | 59,232 | $ | 1,396 | $ | 103,474 | |||||||||||||||
| Dallas | 111,592 | 47,574 | 548 | 64,566 | |||||||||||||||||||
| Orlando | 61,688 | 25,110 | 61 | 36,639 | |||||||||||||||||||
| Northern Virginia/Washington, D.C. | 60,324 | 24,902 | 911 | 36,333 | |||||||||||||||||||
| Minneapolis | 63,713 | 30,954 | 543 | 33,302 | |||||||||||||||||||
| New York | 54,040 | 24,764 | 81 | 29,357 | |||||||||||||||||||
| Boston | 42,847 | 17,181 | 39 | 25,705 | |||||||||||||||||||
| Total reportable segments | 555,514 | 229,717 | 3,579 | 329,376 | |||||||||||||||||||
| Other | 22,242 | 5,374 | (3,899) | 12,969 | |||||||||||||||||||
| Totals | $ | 577,756 | $ | 235,091 | $ | (320) | $ | 342,345 | |||||||||||||||
A reconciliation of Net loss applicable to Piedmont to NOI is presented below (in thousands):
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Net loss applicable to Piedmont | $ | (83,620) | $ | (79,069) | $ | (48,387) | |||||||||||
Management fee revenue (1) | (325) | (1,091) | (1,004) | ||||||||||||||
| Depreciation and amortization | 227,089 | 226,540 | 236,214 | ||||||||||||||
| Impairment charges | — | 33,832 | 29,446 | ||||||||||||||
| General and administrative expenses | 30,587 | 35,423 | 29,190 | ||||||||||||||
| Interest expense | 128,005 | 122,984 | 101,258 | ||||||||||||||
| Other income | (303) | (3,915) | (3,256) | ||||||||||||||
| Loss on early extinguishment of debt | 37,788 | 386 | 820 | ||||||||||||||
(Gain)/loss on sale of real estate assets | (2,013) | 445 | (1,946) | ||||||||||||||
Net income applicable to noncontrolling interests | 19 | 5 | 10 | ||||||||||||||
| NOI | $ | 337,227 | $ | 335,540 | $ | 342,345 | |||||||||||
(1)Presented net of related operating expenses incurred to earn such management fee revenue. Such operating expenses are a component of property operating costs in the accompanying consolidated statements of operations.
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.