v3.26.3
Debt
 9 Months Ended
Sep. 30, 2026
Debt Disclosure [Abstract]  
Debt Debt
During the three months ended September 30, 2026, Piedmont OP issued $230.0 million principal amount of its 2.875% exchangeable senior notes (the “Exchangeable Senior Notes”), including $30.0 million of notes issued pursuant to an option granted to the initial purchasers and exercised in full, pursuant to an indenture, dated September 17, 2026 (the “Indenture”). The Exchangeable Senior Notes are fully and unconditionally guaranteed by Piedmont. Interest on the Exchangeable Senior Notes is payable semi-annually on February 1 and August 1 of each year, commencing February 1, 2027. The Exchangeable Senior Notes are scheduled to mature on February 1, 2031, unless earlier repurchased, redeemed, or exchanged, and bear interest at a rate of 2.875% per annum.

Before November 1, 2030, noteholders will have the right to exchange their Exchangeable Senior Notes only upon the occurrence of certain events. On and after November 1, 2030, noteholders may exchange their Exchangeable Senior Notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date. The initial exchange rate is 79.0514 shares of Piedmont's common stock per $1,000 principal amount of Exchangeable Senior Notes, which represents an initial exchange price of approximately $12.65 per share of Piedmont’s common stock (representing a 37.5% premium to the $9.20 closing price on September 14, 2026). The exchange rate and the exchange price will be subject to customary adjustments upon the occurrence of certain events. The Exchangeable Senior Notes will be exchangeable for cash up to the aggregate principal amount of the Exchangeable Senior Notes to be exchanged and, in respect of the remainder of the exchange obligation, if any, in excess thereof, cash, common shares or a combination thereof, at the election of Piedmont OP.

The Exchangeable Senior Notes will be redeemable, in whole or in part (subject to certain limitations), for cash at Piedmont OP’s option at any time, and from time to time, on or after August 6, 2029, and on or before the 60th scheduled trading day immediately before the maturity date, but only if the last reported sale price per share of Piedmont’s common stock exceeds 130% of the exchange price for a specified period of time and certain other conditions are satisfied. In addition, the Exchangeable Senior Notes will be redeemable, in whole or in part (subject to certain limitations), at Piedmont OP’s option at any time to the extent necessary to preserve Piedmont’s status as a real estate investment trust for U.S. federal income tax purposes or if less than 10% of the Exchangeable Senior Notes are outstanding, in each case, so long as certain liquidity conditions are satisfied. However, Piedmont OP may not redeem less than all of the outstanding Exchangeable Senior Notes in either case unless at least $100.0 million aggregate principal amount of the Exchangeable Senior Notes are outstanding and not called for redemption as of the time Piedmont OP sends the related redemption notice. The redemption price will be equal to the principal amount of the Exchangeable Senior Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date.

In the event of a fundamental change (as defined in the Indenture), noteholders may require Piedmont OP to repurchase the Exchangeable Senior Notes at a cash repurchase price equal to the principal amount of the Exchangeable Senior Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the fundamental change repurchase date.

The Exchangeable Senior Notes are carried at amortized cost. Debt issuance costs of approximately $6.4 million, which include initial purchaser discounts and offering expenses, are presented as a direct deduction from the carrying amount of the Exchangeable Senior Notes and are amortized to interest expense over the contractual term of the Exchangeable Senior Notes using the straight-line method which approximates the effective interest method.

Piedmont OP used a portion of the net proceeds from the offering to repurchase approximately 5.4 million shares of Piedmont's common stock in privately negotiated transactions (at a price of $9.20 per share) for a total purchase price of approximately $50 million. Piedmont used the remainder of the net proceeds, together with the net proceeds from the settlement of certain forward sale transactions entered into under Piedmont’s ATM program, cash on hand and borrowings under its $600 Million Unsecured 2022 Line of Credit, to redeem all of its then outstanding $600 Million Unsecured Senior Notes due 2028, which resulted in the recognition of an approximately $20.2 million loss on early extinguishment of debt.

During the nine months ended September 30, 2026, Piedmont amended the $325 million Unsecured 2024 Term Loan (as amended, the "$400 Million Unsecured 2026 Term Loan") to, among other things, increase the principal amount from $325 million to $400 million and extend the maturity date to May 28, 2031. Subject to certain conditions, Piedmont may prepay the loans outstanding under the $400 Million Unsecured 2026 Term Loan, in whole or in part, at any time without premium or penalty. Additionally, the terms of the amendment provide for the use of an increase or decrease to Piedmont’s debt rating and Total Leverage Ratio (as defined in the term loan agreement) as the basis for determining the applicable interest rate, ranging from 0.75% to 1.55%. The net proceeds from the $400 Million Unsecured 2026 Term Loan were used to repay the outstanding balance under Piedmont's $600 Million Unsecured 2022 Line of Credit, with the remainder used for general corporate purposes.
The following table summarizes the terms of Piedmont’s consolidated indebtedness outstanding as of September 30, 2026 and December 31, 2025 (in thousands):

Facility (1)
Stated Rate
Effective Rate (2)
MaturityAmount Outstanding as of
September 30, 2026December 31, 2025
Secured (Fixed)
$197 Million Fixed Rate Mortgage
4.10 %4.10 %10/1/2028$186,023 $188,822 
Unsecured (Variable and Fixed)
$600 Million Unsecured 2022 Line of Credit
SOFR + 1.05%
(3)
4.95 %
(4)
6/30/2028
(5)
152,000 47,000 
$400 Million Unsecured 2026 Term Loan
SOFR + 1.15%
(3)
4.98 %
(6)
5/28/2031400,000 325,000 
$600 Million Unsecured Senior Notes due 2028
9.25 %9.25 %7/20/2028— 287,258 
$400 Million Unsecured Senior Notes due 2029
6.88 %7.11 %7/15/2029400,000 400,000 
$300 Million Unsecured Senior Notes due 2030
3.15 %3.90 %

8/15/2030300,000 300,000 
$230 Million Exchangeable Senior Notes due 2031
2.88 %2.88 %2/1/2031230,000 — 
$300 Million Unsecured Senior Notes due 2032
2.75 %2.78 %

4/1/2032300,000 300,000 
$400 Million Unsecured Senior Notes due 2033
5.63 %5.73 %1/15/2033400,000 400,000 
Unamortized discounts and debt issuance costs
(27,182)(23,368)
Subtotal/Weighted Average
4.83 %$2,154,818 $2,035,890 
Total/Weighted Average
4.78 %$2,340,841 $2,224,712 

(1)All of Piedmont’s outstanding debt as of September 30, 2026 is unsecured and interest-only until maturity, except for the $197 Million Fixed Rate Mortgage, which is 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 with the SOFR selections are comprised of the base 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 0.75% to 1.55% on the $400 Million Unsecured 2026 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 two additional years (through two available one-year extensions to a final extended maturity date of June 30, 2030); provided that Piedmont is not then in default and upon payment of extension fees.
(6)The facility has a stated variable rate; however, Piedmont has entered into interest rate swap agreements which effectively fix, subject to changes to Piedmont's credit rating (as defined in the term loan agreement), $200 million of the principal balance at a 4.94% interest rate through June 1, 2028. The rate presented is the weighted-average rate for the effectively fixed and variable portions of the debt outstanding as of September 30, 2026 (see Note 5).

Piedmont made interest payments on all debt facilities, including interest rate swap cash settlements, of approximately $58.5 million and $52.2 million for the three months ended September 30, 2026 and 2025, respectively, and approximately $109.0 million and $121.1 million for the nine months ended September 30, 2026 and 2025, respectively. Also, Piedmont capitalized interest of approximately $0.8 million and $2.9 million for the three months ended September 30, 2026 and 2025, respectively, and $2.9 million and $9.3 million for the nine months ended September 30, 2026 and 2025, respectively. As of September 30, 2026, Piedmont believes it was in compliance with all financial covenants associated with its debt instruments.
See Note 6 for a description of Piedmont’s estimated fair value of debt as of September 30, 2026.