Piedmont Office Realty Trust is halting dividends for the first time in its 15-year history as a publicly traded REIT.
The Atlanta-based office REIT is hoarding cash because more than 10% of its tenants that have signed leases aren`t yet paying rent, Piedmont CEO Brent Smith said on the company`s Tuesday earnings call.
Companies that have committed to occupying nearly 2M SF of Piedmont`s office space were either on free rent status or had leases yet to commence at the end of the first quarter, according to the REIT`s earnings report for the period.
Suspending the company`s dividend, which paid investors 12.5 cents per share every quarter since mid-2023, would allow it to retain $60M of annual cash flow, Smith said. It would be able to spend that money on securing new leases and covering tenant build-outs — otherwise, it might have been forced to take on new debt or sell assets in a down market...
Companies that have committed to occupying nearly 2M SF of Piedmont`s office space were either on free rent status or had leases yet to commence at the end of the first quarter, according to the REIT`s earnings report for the period.
Suspending the company`s dividend, which paid investors 12.5 cents per share every quarter since mid-2023, would allow it to retain $60M of annual cash flow, Smith said. It would be able to spend that money on securing new leases and covering tenant build-outs — otherwise, it might have been forced to take on new debt or sell assets in a down market...
...more
Heather: Heather: The market has shifted over the past couple of years. We have solid rents in Madison and with it a sweetening of the “deal” for tenants. The numbers tell the story. What does your vacancy truly cost you? Dark spaces cast a shadow of doubt on an area. It’s less enticing, spaces can be vandalized, or people can make assumptions and as we know, belief can outweigh truth at times, unfortunately.
Share this article on you social outlets
Our Sponsors
- - Volume: 25 - WEEK: 20 Date: 5/13/2025 3:25:02 PM -