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

May 11, 2010 | About:
10qk

10qk

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PIEDMONT OFFICE REALTY TRUST INC (PDM) filed Quarterly Report for the period ended 2010-03-31.

Piedmont Office Realty Trust Inc has a market cap of $1.02 billion; its shares were traded at around $19.81 with and P/S ratio of 1.7. The dividend yield of Piedmont Office Realty Trust Inc stocks is 6.4%.

Highlight of Business Operations:

We intend to use cash flows generated from operation of our wholly-owned properties and distributions from our unconsolidated joint ventures, proceeds from our recent offering of common stock, and proceeds from our existing $500 Million Unsecured Facility as our primary sources of immediate and long-term liquidity. In addition, the potential selective disposal of existing properties and other financing opportunities afforded to us based on our relatively low leverage and quality asset base may also provide additional sources of capital; however, the availability and attractiveness of terms for both of these sources of capital may be limited given the current displacement in the credit markets. During the three months ended March 31, 2010, we paid down all outstanding amounts under our $500 Million Unsecured Facility; therefore, as of March 31, 2010, we had the full capacity available for future borrowing with the exception of $10.4 million of capacity that is reserved as security for outstanding letters of credit with two tenants.

Rental income decreased from approximately $112.9 million for the three months ended March 31, 2009 to approximately $112.1 million for the three months ended March 31, 2010. This decrease relates primarily to a reduction in rent associated with the partial termination of a lease at the Aon Center Building in Chicago, Illinois. Tenant reimbursements decreased from approximately $40.1 million for the three months ended March 31, 2009 to approximately $35.1 million for the three months ended March 31, 2010 primarily due to lower recoverable tenant-requested services, utility costs, and property tax expense totaling approximately $4.2 million as well as an overall reduction in recoverable expenses due to the partial termination at the Aon Center Building.

Property operating costs decreased approximately $4.8 million for the three months ended March 31, 2010 compared to the same period in the prior year. This variance is primarily the result of lower recoverable utility costs of approximately $1.3 million, lower recoverable tenant-requested services (i.e., billback expenses) of approximately $1.5 million, and lower recoverable property tax expenses of approximately $1.4 million in the current period.

Interest expense decreased approximately $0.2 million for the three months ended March 31, 2010 compared to the same period in the prior year. The decrease is attributable primarily to lower net borrowings on our $500 Million Unsecured Facility.

Income from continuing operations per share on a fully diluted basis increased from $0.18 for the three months ended March 31, 2009 to $0.19 for the three months ended March 31, 2010 primarily as a result of lower amortization costs incurred in the current period.

Read the The complete Report

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