$PDM

WELLS REAL ESTATE INVESTMENT TRUST INC

CIK:0001042776|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenues:
Rental and tenant reimbursement revenue	$ 137,265	$ 133,954	$ 273,706	$ 270,018
Total revenues	144,123	140,292	287,417	282,978
Expenses:
Property operating costs	55,986	55,610	113,292	113,524
Depreciation	44,825	40,646	88,852	81,539
Amortization	14,487	14,785	29,750	30,206
General and administrative	8,237	7,960	16,146	15,523
Total expenses	123,535	119,001	248,040	240,792
Other income (expense):
Interest expense	(31,874)	(31,954)	(63,803)	(63,631)
Other income	189	133	414	528
Loss on early extinguishment of debt	0	(7,500)	0	(8,000)
Gain on sale of real estate assets	0	1,224	0	2,013
Total other income (expense)	(31,685)	(38,097)	(63,389)	(69,090)
Net loss	(11,097)	(16,806)	(24,012)	(26,904)
Net income applicable to noncontrolling interest	(4)	(2)	(9)	(8)
Net loss applicable to Piedmont	$ (11,101)	$ (16,808)	$ (24,021)	$ (26,912)
Per share information – basic and diluted:
Net loss applicable to common stockholders - basic (in dollars per share)	$ (0.09)	$ (0.14)	$ (0.19)	$ (0.22)
Net loss applicable to common stockholders - diluted (in dollars per share)	$ (0.09)	$ (0.14)	$ (0.19)	$ (0.22)
Weighted-average common shares outstanding – basic (in shares)	125,081,542	124,458,941	124,944,559	124,359,010
Weighted-average common shares outstanding – diluted (in shares)	125,081,542	124,458,941	124,944,559	124,359,010
Property management fee revenue
Revenues:
Property management fee revenue and other property related income	$ 108	$ 81	$ 266	$ 162
Other property related income
Revenues:
Property management fee revenue and other property related income	$ 6,750	$ 6,257	$ 13,445	$ 12,798

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash Flows from Operating Activities:
Net loss	$ (24,012)	$ (26,904)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation	88,852	81,539
Amortization of debt issuance costs inclusive of settled interest rate swaps	4,232	3,987
Other amortization	30,873	28,339
Loss on early extinguishment of debt	0	8,000
Stock compensation expense	4,685	4,650
Gain on sale of real estate assets	0	(2,013)
Changes in assets and liabilities:
Increase in tenant and straight-line rent receivables	(13,605)	(14,527)
Increase in prepaid expenses and other assets	(3,760)	(4,845)
Increase/(decrease) in accounts payable and accrued expenses	12,804	(12,148)
Decrease in deferred income	(7,615)	(12,261)
Net cash provided by operating activities	92,454	53,817
Cash Flows from Investing Activities:
Capitalized expenditures	(71,846)	(81,572)
Sales proceeds from wholly-owned properties	0	31,351
Deferred lease costs paid	(22,106)	(20,818)
Net cash used in investing activities	(93,952)	(71,039)
Cash Flows from Financing Activities:
Debt issuance and other costs paid	(182)	(291)
Proceeds from debt	184,000	482,087
Repayments of debt	(160,857)	(530,322)
Premiums paid to repurchase senior notes	0	(7,098)
Costs of issuance of common stock	(342)	(168)
Value of shares withheld for payment of taxes related to employee stock compensation	(3,029)	(2,199)
Dividends paid	(137)	(30,854)
Net cash provided by/(used in) financing activities	19,453	(88,845)
Net increase/(decrease) in cash, cash equivalents, and restricted cash and escrows	17,955	(106,067)
Cash, cash equivalents, and restricted cash and escrows, beginning of period	3,791	113,882
Cash, cash equivalents, and restricted cash and escrows, end of period	$ 21,746	$ 7,815

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Real estate assets, at cost:
Land	$ 542,474	$ 542,474
Buildings and improvements, less accumulated depreciation of $1,345,832 and $1,278,600 as of June 30, 2026 and December 31, 2025, respectively	2,779,052	2,787,669
Intangible lease assets, less accumulated amortization of $65,398 and $73,824 as of June 30, 2026 and December 31, 2025, respectively	37,239	44,371
Construction in progress	47,131	44,358
Real estate assets held for sale, net	2,837	2,837
Total real estate assets	3,408,733	3,421,709
Cash and cash equivalents	16,785	731
Tenant receivables	11,440	6,155
Straight-line rent receivables	219,636	214,285
Restricted cash and escrows	4,961	3,060
Prepaid expenses and other assets	24,120	20,857
Goodwill	53,491	53,491
Interest rate swaps	530	0
Deferred lease costs, less accumulated amortization of $219,933 and $209,155 as of June 30, 2026 and December 31, 2025, respectively	308,286	311,066
Total assets	4,047,982	4,031,354
Liabilities:
Unsecured debt, net of unamortized discount and debt issuance costs of $23,287 and $23,368 as of June 30, 2026 and December 31, 2025, respectively	2,063,971	2,035,890
Secured debt	186,966	188,822
Accounts payable, accrued expenses and accrued capital expenditures	185,339	172,880
Deferred income	115,496	112,124
Intangible lease liabilities, less accumulated amortization of $29,934 and $35,036 as of June 30, 2026 and December 31, 2025, respectively	21,216	24,824
Interest rate swaps	0	111
Total liabilities	2,572,988	2,534,651
Commitments and Contingencies (Note 7)	0	0
Stockholders’ Equity:
Shares-in-trust, 150,000,000 shares authorized; none outstanding as of June 30, 2026 or December 31, 2025	0	0
Preferred stock, no par value, 100,000,000 shares authorized; none outstanding as of June 30, 2026 or December 31, 2025	0	0
Common stock, $0.01 par value, 750,000,000 shares authorized; 125,132,825 and 124,519,278 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively	1,251	1,245
Additional paid-in capital	3,730,985	3,730,273
Cumulative distributions in excess of earnings	(2,251,371)	(2,227,350)
Accumulated other comprehensive loss	(7,368)	(8,967)
Piedmont stockholders’ equity	1,473,497	1,495,201
Noncontrolling interest	1,497	1,502
Total stockholders’ equity	1,474,994	1,496,703
Total liabilities and stockholders’ equity	$ 4,047,982	$ 4,031,354