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PIEDMONT OFFICE REALTY TRUST INC Reports Operating Results (10-K)

February 28, 2012 | About:
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10qk

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PIEDMONT OFFICE REALTY TRUST INC (PDM) filed Annual Report for the period ended 2011-12-31.

Piedmont Office has a market cap of $3.09 billion; its shares were traded at around $17.71 with a P/E ratio of 13.7 and P/S ratio of 5.7. The dividend yield of Piedmont Office stocks is 7.1%. Piedmont Office had an annual average earning growth of 25.9% over the past 5 years.

Highlight of Business Operations:

The following table sets forth selected data from our consolidated statements of income for the years ended December 31, 2011 and 2010, respectively, as well as each balance as a percentage of total revenues for the years presented (dollars in millions):

Rental income for the year ended December 31, 2011 increased to approximately $419.1 million, as compared to $408.4 million in the prior year. Approximately $24.2 million of the variance is due to properties acquired during 2010 and 2011, as well as increased occupancy at our Piedmont Pointe I and II buildings in Bethesda, Maryland. However, this increase was partially offset by a reduction in leased space due to lease terminations, primarily at our 1201 Eye Street building in Washington, D.C., and lease expirations at our Las Colinas Corporate Center II building in Irving, Texas, and our Windy Point II building in Schaumburg, Illinois. We also experienced lower rates for leases commencing in late 2010 or subsequent to December 31, 2010, primarily related to leases at our 1200 Crown Colony Drive building in Quincy, Massachusetts and our 150 West Jefferson building in Detroit, Michigan, which further offset the aforementioned increases in rental revenues.

The following table sets forth selected data from our consolidated statements of income for the years ended December 31, 2010 and 2009, respectively, as well as each balance as a percentage of total revenues for the years presented (dollars in millions):

In accordance with GAAP, we have classified the operations of the 111 Sylvan Avenue building , the Eastpointe Corporate Center, the 5000 Corporate Court building, and the 35 West Wacker Drive building as discontinued operations for all periods presented. Income from discontinued operations was approximately $8.3 million and $11.6 million for the years ended December 31, 2010 and 2009, respectively. Although operating income was higher for the year ended December 31, 2010 due mainly to lower property operating costs, depreciation, and amortization, these variances were more than offset by Piedmont's recognition of an impairment charge of approximately $9.6 million in conjunction with adjusting the 111 Sylvan Avenue building assets to estimated fair value (the sales price), less estimated costs to sell, as well as a subsequent loss on the sale of the building of approximately $0.8 million, which was the result of costs incurred for the substitution of another property for the 111 Sylvan Avenue building in our $350 Million Secured Pooled Facility.

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