PIEDMONT REALTY TRUST ANNOUNCES TAX TREATMENT OF 2025 DIVIDENDS

On January 20, 2026, Piedmont Realty Trust (NYSE: PDM), a well-established real estate investment trust (REIT), announced the tax treatment of its dividends for the year 2025. The details disclosed offer crucial information for stockholders regarding the classification of dividends paid to them during this period.

Piedmont's dividends are structured as follows: The company declared two dividends of $0.125 per share, with the record dates on November 22, 2024, and February 21, 2025, respectively. Both dividends will be paid on January 2, 2025, and March 14, 2025. It is important to note that these dividends consisted entirely of nondividend distributions under Section 1250, which amounted to $0.125 each time. Therefore, there were no portions classified as ordinary dividends, qualified dividends, or capital gains.

Given how dividends may be treated, Piedmont advises shareholders to consult with their personal tax advisors to fully understand how these dividends will impact their unique tax situations.

Piedmont Realty Trust is committed to enhancing the office experience across the United States, with a focus on premier Class A properties in key Sunbelt markets. The company prides itself on its proactive management approach, delivering high-quality environments that foster client satisfaction.

For any shareholder-related inquiries or assistance, Piedmont’s transfer agent, Computershare, can be reached at 866-354-3485 or via email at investor.services@piedmontreit.com. As a dedicated player in the real estate market, Piedmont Realty Trust continues to prioritize transparent communication with its investors regarding financial matters and tax implications associated with its dividends.

Piedmont Realty Trust's recent announcement regarding the tax treatment of its 2025 dividends provides insightful data for investors considering exposure to this real estate investment trust (REIT). With a current dividend of $0.125 per share for the announced periods and significant portions classified as non-dividend distributions, it opens a conversation on the broader implications for tax efficiency and investment strategy.

Firstly, the classification of the dividends as ordinary, capital gains, and non-dividend distributions is critical. Here, $0.125 is marked solely as non-dividend distributions, which may not be taxed as ordinary income upfront, thus potentially allowing investors to strengthen their cash flows in the short run. However, investors should recognize that this treatment can lead to a reduction in the cost basis of the shares, possibly increasing taxable gains upon sale. Thus, consulting a tax advisor is essential to strategize around these factors effectively.

From a market perspective, Piedmont Realty Trust, operating approximately 16 million square feet of Class A properties in lucrative U.S. Sunbelt markets, shows promise in a recovering office space sector. The focus on enhancing tenants' experiences positions the REIT favorably against competitors, especially in the post-pandemic environment where the quality of work environments is paramount.

Investors may also appreciate that the stability of the dividend aligns with the broader economic backdrop, where the Fed's monetary policy impacts yield expectations. Given the current interest rate landscape, a consistent dividend yield from Piedmont could attract income-focused investors who prefer stable, long-term holdings with potential capital appreciation.

In summary, while the current dividend announcement encourages ongoing investment, a thorough analysis of tax implications and market conditions will be fundamental for maximizing returns. Maintain a proactive dialogue with tax consultants and observe market movements closely as you navigate your investment in PDM.