2 unchanged sentences
Market risk is the exposure to loss resulting from changes in interest rates, foreign currency exchange rates, commodity prices, and equity prices.
−Removed: As of December 31, 2024, our potential for exposure to market risk includes interest rate fluctuations in connection with any future borrowings under our $600 Million Unsecured 2022 Line of Credit and unhedged amounts outstanding on our $200 Million Unsecured 2024 Term Loan after February 1, 2026.
+Added: As of December 31, 2025, our potential for exposure to market risk includes interest rate fluctuations in connection with any future borrowings under our $600 Million Unsecured 2022 Line of Credit.
As a result, the primary market risk to which we believe we are exposed is interest rate risk.
1 unchanged sentence
Our interest rate risk management objectives are to limit the impact of interest rate changes on earnings and cash flow primarily through a low-to-moderate level of overall borrowings, as well as managing the variability in rate fluctuations on our outstanding debt.
−Removed: As such, all of our debt as of December 31, 2024 is currently based on fixed or effectively-fixed interest rates to hedge against volatility in the credit markets.
+Added: As such, all of our debt as of December 31, 2025, other than the $600 Million Unsecured 2022 Line of Credit, is currently based on fixed or effectively-fixed interest rates to hedge against volatility in the credit markets.
+Added: See Note 4 to our accompanying consolidated financial statements for further details.
We do not enter into derivative or interest rate transactions for speculative purposes, as such all of our debt and derivative instruments were entered into for purposes other than trading purposes.
4 unchanged sentences
Variable rate repayments $ — $ — $ 47,000 $ — $ — $ — $ 47,000
−Removed: $ — $ — $ — $ 200,000
Variable rate average interest rate (2)
— % — % 4.92 % — % — % — % 4.92 %
−Removed: — % — % — % 5.41 %
Fixed rate repayments $ 3,433 $ 328,894 (1)
2 unchanged sentences
4.10 % 5.36 % (1)
−Removed: (1) The $200 Million Unsecured 2024 Term Loan has a stated variable rate;
−Removed: however, Piedmont's interest rate swap agreements as of December 31, 2024 effectively fixed, exclusive of changes to Piedmont's credit rating, the full principal balance to 5.41% through February 1, 2026, approximately one year before the maturity date of the loan.
−Removed: Upon expiration of the interest rate swap agreements, the interest rate will be calculated as adjusted SOFR, plus 1.30%.
−Removed: On February 13, 2025, Piedmont amended the $200 Million Unsecured 2024 Term Loan to increase the principal amount of the loan by $125 million to a total of $325 million principal amount outstanding and to add two six-month extension options for a final maturity date of January 29, 2028, provided that we are not then in default and upon payment of extension fees.
+Added: 7.26 % 6.88 % 3.15 % 5.13 % 5.43 %
+Added: (1) Includes the $325 Million Unsecured 2024 Term Loan which has a stated variable rate;
+Added: however, Piedmont's interest rate swap agreements as of December 31, 2025 effectively fix the full principal balance to 5.38% through February 1, 2026.
+Added: Upon expiration of the interest rate swap agreements, the interest rate will revert to a variable rate based on SOFR, plus 1.30%.
(2) See Note 3 to our accompanying consolidated financial statements for further details on our debt structure.
−Removed: (3) Includes the $250 Million Unsecured 2018 Term Loan, which was repaid on February 13, 2025.
−Removed: As of December 31, 2024, the facility has a stated variable rate;
−Removed: however, Piedmont's interest rate swap agreements effectively fixed the full principal balance to 4.79% through the schedule maturity date of the loan.
The estimated fair value of our debt above as of December 31, 2025 and 2024 was approximately $2.3 billion and $2.2 billion, respectively.
Our interest rate swap agreements in place as of December 31, 2025 carried a notional amount of $325 million and a weighted-average fixed interest rate of 5.38%, and our interest swap agreements as of December 31, 2024 carried a notional amount totaling $450 million with a weighted-average fixed interest rate of 5.07%.
−Removed: On February 13, 2025, we terminated eight interest rate swap agreements with a total notional value of $250 million in conjunction with the repayment of the $250 Million Unsecured 2018 Term Loan.
As of December 31, 2025, our total outstanding debt subject to fixed, or effectively fixed, interest rates totaling approximately $2.2 billion has an average effective interest rate of approximately 5.43% per annum with expirations ranging from 2027 to 2033.
+Added: As of December 31, 2025, we had a $47.0 million outstanding balance on our $600 Million Unsecured 2022 Line of Credit which has a stated rate of SOFR plus 1.05% per annum (based on our current corporate credit rating), resulting in a total interest rate of 4.92%.
+Added: Additionally, a 1.0% increase in variable interest rates on our outstanding borrowings as of December 31, 2025 would increase interest expense approximately $0.5 million on a per annum basis.
Index to Financial Statements
−Removed: however, on February 13, 2025, we repaid the $250 Million Unsecured 2018 Term Loan and amended the $200 Million Unsecured 2024 Term Loan and recast the $600 Million Unsecured 2022 Line of Credit to extend our maturity schedule with expirations ranging from 2028 to 2032, assuming certain extension options are exercised.
−Removed: A change in the market interest rate impacts the net financial instrument position of our fixed-rate debt portfolio but has no impact on interest incurred or cash flows for that portfolio.
−Removed: As of December 31, 2024, our $600 Million Unsecured 2022 Line of Credit had no amounts outstanding, which is the only facility subject to a variable interest rate.
−Removed: To the extent that we borrow additional funds in the future under the $600 Million Unsecured 2022 Line of Credit or potential future variable-rate debt facilities, we would have exposure to increases in interest rates, which would potentially increase our cost of debt.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.