Item 5. Market for Registrant’s Common Equity
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Market Information and Holders
Our common stock is listed on the New York Stock Exchange under the symbol “PDM.” As of February 16, 2021, there were 8,724 common stockholders of record of our common stock.
Distributions
We intend to make distributions each taxable year equal to at least 90% of our REIT taxable income (not including a return of capital for federal income tax purposes). One of our primary goals is to pay regular quarterly distributions to our stockholders. The amount of distributions paid and the taxable portion thereof in prior periods are not necessarily indicative of amounts anticipated in future periods.
The amount of distributions to common stockholders is determined by our board of directors and is dependent upon a number of factors, including funds deemed available for distribution, based principally on our current and future projected operating cash flows reduced by capital requirements necessary to maintain our existing portfolio, our future capital needs, our future sources of liquidity, and the annual distribution requirements necessary to maintain our status as a REIT under the Code. Our board of directors declared a $0.21 dividend for each of the four quarters of 2020.
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Performance Graph
The following graph compares the cumulative total return of Piedmont’s common stock with the FTSE NAREIT Equity Office Index, the FTSE NAREIT Equity REITs Index, and the S&P 500 Index for the period beginning on December 31, 2015 through December 31, 2020. The graph assumes a $100 investment in each of Piedmont and the three indices, and the reinvestment of any dividends.
Comparison of Cumulative Total Return of One or More Companies, Peer Groups, Industry Indices, and/or Broad Markets
As of the year ended December 31,
2015 2016 2017 2018 2019 2020
Piedmont Office Realty Trust, Inc. $ 100.00 $ 115.62 $ 115.73 $ 105.20 $ 142.99 $ 109.42
FTSE NAREIT Equity Office $ 100.00 $ 113.17 $ 119.11 $ 101.84 $ 133.83 $ 109.16
FTSE NAREIT Equity REITs $ 100.00 $ 108.52 $ 114.19 $ 108.91 $ 137.23 $ 126.25
S&P 500 $ 100.00 $ 111.96 $ 136.40 $ 130.42 $ 171.49 $ 203.04
The performance graph above is being furnished as part of this Annual Report solely in accordance with the requirement under Rule 14a-3(b)(9) to furnish Piedmont’s stockholders with such information and, therefore, is not deemed to be filed with the SEC or subject to the liabilities of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and should not be deemed to be incorporated by reference into any of our prior or subsequent filings under the Securities Act of 1933, as amended.
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Purchases of Equity Securities By the Issuer and Affiliated Purchasers
During the quarter ended December 31, 2020, we repurchased and retired approximately 2.2 million shares of our common stock in the open market as part of our board-authorized stock repurchase plan as follows:
Period Total Number of
Shares Purchased
(in 000’s) Average Price Paid
per Share Total Number of
Shares Purchased
as Part of
Publicly Announced
Program
(in 000’s) (1)
Maximum Approximate
Dollar Value of Shares
Available That May
Yet Be Purchased
Under the Program
(in 000’s)
October 1, 2020 to October 31, 2020 — $ — — $ 200,000
November 1, 2020 to November 30, 2020 1,530 $ 13.19 1,530 $ 179,811
December 1, 2020 to December 31, 2020 660 $ 15.87 660 $ 169,329 (1)
Total 2,190 $ 14.00 2,190
(1) Amounts available for purchase relate only to remaining capacity under our stock repurchase plan as of December 31, 2020. On February 19, 2020, our Board of Directors authorized the repurchase of up to $200 million of shares of our common stock pursuant to the stock repurchase plan between February 2020 and February 2022, at the discretion of management, of which $169.3 million of capacity remained as of December 31, 2020.
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ITEM 6. SELECTED FINANCIAL DATA
The following sets forth a summary of our selected financial data as of and for the years ended December 31, 2020, 2019, 2018, 2017, and 2016 (in thousands except for per-share data). Our selected financial data is prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), except as noted below.
2020 2019 2018 2017 2016
Statement of Income Data:
Total revenues $ 535,024 $ 533,178 $ 525,967 $ 574,173 $ 555,715
Property operating costs $ 214,933 $ 211,380 $ 209,338 $ 222,441 $ 220,796
Depreciation and amortization $ 203,869 $ 182,681 $ 171,251 $ 194,655 $ 202,852
Impairment loss on real estate assets $ — $ 8,953 $ — $ 46,461 $ 33,901
General and administrative expenses $ 27,464 $ 37,895 $ 29,713 $ 29,319 $ 27,382
Interest and other expense $ (61,739) $ (60,023) $ (61,065) $ (63,622) $ (64,477)
Gain on sale of real estate assets $ 205,666 $ 197,010 $ 75,691 $ 115,874 $ 93,410
Net income $ 232,685 $ 229,256 $ 130,291 $ 133,549 $ 99,717
Per-Share Data:
Per weighted-average common share data:
Income from continuing operations per share—basic and diluted $ 1.85 $ 1.82 $ 1.00 $ 0.92 $ 0.69
Cash dividends declared per common share $ 0.84 $ 0.84 $ 0.84 $ 1.34 $ 0.84
Weighted-average shares outstanding—basic (in thousands) 125,730 125,709 130,161 145,044 145,230
Weighted-average shares outstanding—diluted (in thousands) 126,104 126,182 130,636 145,380 145,635
Balance Sheet Data (at period end):
Total assets $ 3,739,810 $ 3,516,757 $ 3,592,429 $ 3,999,967 $ 4,368,168
Total stockholders’ equity $ 1,897,961 $ 1,818,974 $ 1,712,140 $ 1,986,489 $ 2,097,703
Outstanding debt $ 1,622,004 $ 1,481,404 $ 1,685,472 $ 1,726,927 $ 2,020,475
NAREIT Funds from Operations Data (1) :
GAAP net income applicable to common stock $ 232,688 $ 229,261 $ 130,296 $ 133,564 $ 99,732
Depreciation and amortization 202,568 181,721 170,348 193,904 202,268
Impairment loss
— 8,953 — 46,461 33,901
Gain on sale- wholly-owned properties and unconsolidated partnerships
(205,666) (197,010) (75,691) (119,557) (93,410)
NAREIT Funds From Operations applicable to common stock (1)
$ 229,590 $ 222,925 $ 224,953 $ 254,372 $ 242,491
Retirement and separation expenses associated with senior management transition in June 2019
— 3,175 — — —
Acquisition costs — — — 6 976
Loss on extinguishment of debt 9,336 — 1,680 — —
Net recoveries of casualty loss and litigation settlements — — — — (34)
Core Funds From Operations applicable to common stock (1)
$ 238,926 $ 226,100 $ 226,633 $ 254,378 $ 243,433
Amortization of debt issuance costs, fair market adjustments on notes payable, and discount on Senior Notes
2,833 2,101 2,083 2,496 2,610
Depreciation of non real estate assets 1,216 872 813 809 841
Straight-line effects of lease revenue and net effect of amortization of below-market in-place lease intangibles
(34,885) (18,734) (21,595) (28,067) (26,609)
Stock-based compensation adjustments 7,014 5,030 7,528 6,139 5,620
Acquisition costs — — — (6) (976)
Non-incremental capital expenditures (77,682) (49,653) (44,004) (35,437) (35,568)
Adjusted Funds From Operations applicable to common stock (1)
$ 137,422 $ 165,716 $ 171,458 $ 200,312 $ 189,351
(1) Net income calculated in accordance with GAAP is the starting point for calculating Funds from Operations, Core Funds From Operations, and Adjusted Funds From Operations. See " Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations — Funds from Operations, Core Funds from Operations, and Adjusted Funds From Operations" below for a description and reconciliation of the calculations as presented.
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