Attached files
| file | filename |
|---|---|
| EX-99.1 - PRESS RELEASE - COLUMBIA PROPERTY TRUST, INC. | ex991pressrelease2017q1.htm |
| 8-K - 8-K - COLUMBIA PROPERTY TRUST, INC. | cxp8-k2017q1earningsrelease.htm |
2017
Q1
Supplemental Information
Introduction
Management & Investor Contacts 3
Executive Summary 4
Capitalization Analysis & Research Coverage 5
2017 Guidance 6
Select Performance Information 7
Financial Information
Consolidated Balance Sheet - GAAP 8
Elements of Pro-Rata Balance Sheet - CXP's Interest in Unconsolidated Joint Venture 9
Consolidated Statements of Operations - GAAP 10
Elements of Pro-Rata Statement of Operations - CXP's Interest in Unconsolidated Joint Venture 11
12
Net Operating Income 13
Debt Overview 14
Debt Covenant Compliance 15
Debt Maturities 16
Operational & Portfolio Information
Property Overview - Gross Real Estate Assets, Net Operating Income & Annualized Lease Revenue 17
Property Overview - Square Feet & Occupancy 18
Market Summary 19
Top 20 Tenants & Tenant Industry Profile 20
Lease Expiration Schedule 21
Lease Expiration by Market 22
Leasing Summary 23
Occupancy Summary 24
Capital Expenditure Summary 25
Transaction Activity (2015 - 2017) 26
Additional Information
27
Reconciliation of Cash Flows From Operations to Adjusted Funds From Operations (AFFO) 27
28
29
30
Definitions 31
Forward Looking Statements:
Supplemental Information - Q1 2017 2
This supplemental package contains certain statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements can generally be identified by our use of forward-looking
terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “continue,” or other similar words. Readers are cautioned not to place
undue reliance on these forward-looking statements, including our 2017 guidance, which speak only as of the date this supplemental package is published, and
which are subject to certain risks and uncertainties which could cause actual results to differ materially from those projected or anticipated. These risks and
uncertainties include, without limitation: general risks affecting the real estate industry (including, without limitation, the inability to enter into or renew leases,
dependence on tenants’ financial condition, and competition from other owners and operators of real estate); adverse economic or real estate developments in
the company’s target markets; risks associated with the availability and terms of financing, the use of debt to fund acquisitions, and the ability to refinance
indebtedness as it comes due; reductions in asset valuations and related impairment charges; risks associated with downturns in foreign, domestic and local
economies, changes in interest rates; potential liability for uninsured losses and environmental contamination; risks associated with joint ventures; risks
associated with the company’s potential failure to qualify as a REIT under the Internal Revenue Code of 1986, as amended, and possible adverse changes in tax
and environmental laws; and risks associated with the company’s dependence on key personnel whose continued service is not guaranteed. We do not intend to
publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. For additional risks and
uncertainties that would cause actual results to differ materially from those presented in our forward-looking statements see our Annual Report on Form 10-K for
the year ended December 31, 2016 and subsequently filed periodic reports.
On the Cover: San Francisco
Columbia Property Trust, Inc.
Table of Contents
Normalized Funds From Operations (NFFO) & Adjusted Funds From Operations (AFFO)
Reconciliation of Net Income to Normalized Funds From Operations (NFFO)
Reconciliation of Net Income to Net Operating Income (based on cash rents), and Same Store Net Operating Income (based on cash rents) - wholly-
owned properties
Reconciliation of Net Income to Net Operating Income (based on GAAP rents), and Same Store Net Operating Income (based on GAAP rents) - wholly-
owned properties
Reconciliation of Net Operating Income (based on GAAP rents), and Net Operating Income (based on cash rents)
Executive and Senior Management
E. Nelson Mills James A. Fleming
Chief Executive Officer, Executive Vice President
President and Director Chief Financial Officer
David S. Dowdney Wendy W. Gill Kevin A. Hoover Adam I. Popper
Senior Vice President Senior Vice President Senior Vice President Senior Vice President
Western Region Corporate Operations and Portfolio Management Eastern Region
Chief Accounting Officer
Board of Directors
Carmen M. Bowser Charles R. Brown Richard W. Carpenter John L. Dixon David B. Henry
Independent Director Independent Director Independent Director Independent Director Independent Director
Chairman
Murray J. McCabe E. Nelson Mills Michael S. Robb George W. Sands Thomas G. Wattles
Independent Director Chief Executive Officer Independent Director Independent Director Independent Director
President
Corporate Counsel
King & Spalding LLP
1180 Peachtree Street
Atlanta, GA 30309
T 404-572-4600
www.kslaw.com
Investor Relations Shareholder Services
James A. Fleming T 855-347-0042 (toll free)
Executive Vice President & Chief Financial Officer F 816-701-7629
T 404-465-2126 E shareholders@columbia.reit
E Jim.Fleming@columbia.reit
Matt Stover
Director - Finance & Investor Relations
T 404-465-2227
E Matt.Stover@columbia.reit
Supplemental Information - Q1 2017 3
Columbia Property Trust, Inc.
Management & Investor Contacts
Unaudited
As of Period End
3/31/2017
Select Portfolio Statistics
Number of Operating Properties 16
Office Rentable Square Footage (in thousands) (1) 7,797
Percent Leased 94.1%
Commenced Occupancy 90.1%
Average Economic Occupancy (2) 83.3%
Weighted Average Lease Term Remaining (3) 6.9 Years
Balance Sheet ($ in thousands)
Gross Real Estate Assets (4) 4,001,304
Gross Real Estate Assets - Unencumbered (4) (5) 3,262,055
Total Gross Debt (6) 1,515,946
Percentage of Gross Real Estate Assets - Unencumbered / Gross Real Estate Assets 81.5%
Total Gross Debt / Gross Real Estate Assets 37.9%
Rating / Outlook
Standard & Poor's BBB / Stable
Moody's Baa2 / Stable
(1) Includes 100% of Market Square Joint Venture.
(2) Total square feet of leases that have commenced and the tenant is paying rent divided by total rentable square feet. Monthly average for the current quarter.
(3) Based on Annualized Lease Revenue (ALR).
4
(6) Total Gross Debt includes (i) line of credit and notes payable, and (ii) bonds payable.
Supplemental Information - Q1 2017
Columbia Property Trust, Inc.
Executive Summary
Company Overview:
(5) Unencumbered assets are those not subject to mortgage debt.
(4) Gross Real Estate Assets includes (i) land, (ii) building and improvements, (iii) intangible lease assets, (iv) construction in progress, and (v) intangible lease
origination costs, less (vi) intangible lease liabilities.
As of March 31, 2017, CXP owned interests in 16 operating properties, of which 15 are wholly-owned and one is owned through an
unconsolidated joint venture. CXP owns a 51% interest in the Market Square buildings and related $325 million mortgage note through an
unconsolidated joint venture. When evaluating the Company’s performance and capital resources, management considers the financial impact
of investments held directly and through unconsolidated joint ventures. This report includes financial and operational information for our
wholly-owned investments and our proportional interest in unconsolidated investments. We do not control the Market Square Joint Venture
and recognize that proportional financial data may not accurately depict all of the legal and economic implications of our interest in this joint
venture.
Select Portfolio Statistics exclude 263 Shuman Boulevard, as we are in process of transferring this property to its lender. In January 2017, the
lender put the $49.0 million 263 Shuman Boulevard mortgage note into a non-monetary default because the full-building lease with OfficeMax
was not renewed, as is required by the loan agreement.
Portfolio Notes:
Columbia Property Trust (NYSE: CXP) owns and operates Class-A office buildings primarily in competitive CBD locations within high-barrier-to-
entry markets. As of March 31, 2017, our $4 billion portfolio included 16 operating properties containing 7.8 million square feet, concentrated
in San Francisco, New York, Atlanta and Washington, D.C. For more information about Columbia, which carries an investment-grade rating from
both Moody's and Standard & Poor's, please visit our website at www.columbia.reit.
Unaudited ($ & shares in thousands except for per-share data and percentages)
3/31/2017 12/31/2016 9/30/2016 6/30/2016 3/31/2016
Common Stock Data
Weighted-Average Shares Outstanding - Basic 122,003 122,709 123,215 123,206 123,393
Weighted-Average Shares Outstanding - Diluted 122,329 122,855 123,350 123,294 123,412
High Closing Price 23.43$ 22.22$ 24.63$ 22.77$ 23.20$
Low Closing Price 21.20$ 20.47$ 21.24$ 20.20$ 19.81$
Average Closing Price 22.30$ 21.33$ 23.31$ 21.64$ 21.57$
Closing Price (as of period end) 22.25$ 21.60$ 22.39$ 21.40$ 21.99$
Dividends / Share (annualized) 0.80$ 1.20$ 1.20$ 1.20$ 1.20$
Dividend Yield (annualized) (1) 3.6% 5.6% 5.4% 5.6% 5.5%
Common Shares Outstanding (1) 122,451 122,184 123,471 123,464 123,459
Market Value of Common Shares (1) 2,724,535$ 2,639,174$ 2,764,516$ 2,642,130$ 2,714,863$
Total Market Capitalization (1) (2) 4,240,481$ 4,229,526$ 4,356,258$ 4,468,245$ 4,542,335$
Common Stock Repurchases
Shares Purchased - 1,294 - - 1,105
Weighted-Average Price Per Share -$ 21.46$ -$ -$ 22.60$
Total Value of Shares Purchased -$ 27,769$ -$ -$ 24,973$
Equity Research Coverage
BMO Capital Markets Inc. Evercore ISI JMP Securities Morgan Stanley
John P. Kim Sheila McGrath Mitch Germain Vikram Malhotra
212-885-4115 212-497-0882 212-906-3546 212-761-7064
Oppenheimer & Co SunTrust Robinson Humphrey
Steve Manaker Michael R. Lewis
212-667-5950 212-319-5659
Debt Research Coverage
J.P. Morgan Securities
Mark Streeter
212-834-5086
Rating Agencies
Moody's Investor Services Standard & Poor's
Lori Marks Fernanda Hernandez
212-553-1098 212-438-1347
(2) Market value of shares plus gross debt as of quarter end.
Supplemental Information - Q1 2017 5
Columbia Property Trust, Inc.
Capitalization Analysis & Research Coverage
Three Months Ended
(1) Based on closing price and ending shares for the last trading day of quarter.
Unaudited
Per share Low High
Net Income 0.78$ 0.85$
Real Estate Depreciation & Amortization 0.97 0.97
Gain on sale of real estate assets (0.60) (0.60)
Funds From Operations 1.15$ 1.22$
Loss on early extinguishment of debt - -
Normalized Funds From Operations 1.15$ 1.22$
2017 Portfolio Assumptions
l Leased percentage at year end:
l GAAP Straight Line Rental Income:
l G&A Expenses
2017 Transaction Assumptions
l Dispositions: (Completed in January)
l
l Acquisitions:
2017 Other Assumptions
l Weighted-average common shares outstanding - diluted: 122.5MM
Supplemental Information - Q1 2017 6
NOTE: These estimates reflect management's view of current market conditions and incorporate certain economic and operational assumptions and projections.
This annual guidance includes the continued repositioning of the portfolio based on the above assumptions. Actual results could differ from these estimates. Note
that individual quarters may fluctuate on both a cash basis and a GAAP basis due to the timing of dispositions, lease commencements and expirations, the timing
of repairs and maintenance, capital expenditures, capital markets activities and one-time revenue or expense events. In addition, the Company's guidance is based
on information available to management as of the date of this release.
Columbia Property Trust, Inc.
2017 Guidance
Twelve Months Ending 12/31/2017
93% to 95%
$35MM to $40MM
$35MM to $37MM
$539.5MM
$500MM
Investor Conference Call and Webcast:
The Company will host a conference call and live audio webcast, both open for the general public to hear, on Thursday, April 27,
2017, at 5:00 p.m. ET to discuss financial results and business highlights. The number to call for this interactive teleconference
is (412) 542-4180. A replay of the conference call will be available through May 4, 2017, by dialing (877) 344-7529 and entering
the confirmation number, 10105509. A webcast of the call will also be available at the company's website, www.columbia.reit.
Return of 263 Shuman Boulevard property to the lender in settlement of the $49.0 million mortgage note.
Unaudited ($ in thousands except for square feet, per-share data, percentages and ratios)
3/31/2017 12/31/2016 9/30/2016 6/30/2016 3/31/2016
Operating Information
Percent Leased (as of period end) (page 24) 94.1% 90.6% 90.7% 90.6% 92.4%
New Leases - Square Feet (page 23) (2) 142,840 227,617 35,858 448,761 52,095
Renewal Leases - Square Feet (page 23) (2) 138,545 33,789 112,828 155,236 13,155
NOI (based on cash rents) (page 13) (3) 50,410 61,132 64,895 79,075 76,380
Same Store NOI (based on cash rents) (page 13) (3) 49,560 47,962 48,007 61,745 55,750
Adjusted EBITDA (page 28) 49,261 60,689 63,679 76,782 73,117
Net Income (page 10) 74,722 27,400 36,898 13,286 6,697
Net Income per Share - Basic & Diluted 0.61 0.22 0.30 0.11 0.05
Normalized FFO (page 12) 34,774 45,163 46,187 58,856 54,841
Normalized FFO per Share - Basic 0.29 0.37 0.37 0.48 0.44
Normalized FFO per Share - Diluted 0.28 0.37 0.37 0.48 0.44
AFFO (page 12) 27,929 (43,032) 30,289 41,023 46,466
Rental Income (pages 10 & 11) 75,218 89,494 91,586 97,405 104,149
Total Revenues (pages 10 & 11) 87,324 110,870 118,257 132,916 132,526
Straight Line Rent (3) (4) 7,057 7,113 5,292 3,685 5,687
Total Operating Expenses (pages 10 & 11) 71,223 90,186 95,391 101,593 107,243
Maintenance Capital (page 25) 1,675 82,311 11,637 14,575 3,671
Investment Capital (page 25) 21,245 22,020 16,811 9,553 8,083
Dividends 24,490 36,727 37,041 37,040 37,039
Dividends per Share 0.20 0.30 0.30 0.30 0.30
Balance Sheet Information (as of period end)
Gross Real Estate Assets (pages 8 & 9) (5) 4,001,304 4,599,499 4,741,210 5,102,583 5,129,689
Total Assets (page 8 & 9) 4,364,108 4,475,509 4,492,436 4,635,008 4,807,922
Net Debt (pages 8 & 9) (6) 949,107 1,359,133 1,486,753 1,790,648 1,779,111
Gross Debt (pages 8 & 9) (7) 1,515,946 1,590,352 1,591,742 1,826,115 1,827,472
Ratios
NOI Margin (8) 66.5% 62.1% 60.2% 63.6% 63.1%
Fixed Charge Coverage Ratio (9) 2.93 3.59 3.38 4.03 3.74
Net Debt (Average) to Adjusted EBITDA 5.03 5.89 6.65 5.78 6.38
Gross Debt / Gross Real Estate Assets (as of period end) 37.9% 34.6% 33.6% 35.8% 35.6%
Normalized FFO Payout Ratio (10) 70.4% 81.3% 80.2% 62.9% 67.5%
AFFO Payout Ratio (11) 87.7% -85.3% 122.3% 90.3% 79.7%
(8) NOI margin is calculated as GAAP NOI divided by total GAAP revenues.
(10) Calculated as dividends divided by Normalized FFO for the quarter.
(11) Calculated as dividends divided by AFFO for the quarter.
Supplemental Information - Q1 2017 7
(2) Leasing activity is shown at 100% for CXP's share (51%) in the Market Square Joint Venture.
Columbia Property Trust, Inc.
Select Performance Information (1)
Three Months Ended
(1) This section includes non-GAAP financial measures, which are accompanied by what we consider the most directly comparable financial measures calculated and presented in
accordance with GAAP. Quantitative reconciliations of the differences between the non-GAAP financial measures presented and the most directly comparable GAAP financial
measures are shown on pages 27-30. A description of the non-GAAP financial measures we present and a statement of the reasons why management believes the non-GAAP
measures provide useful information to investors about the Company's financial condition and results of operations can be found on page 31.
(7) Total Gross Debt includes (i) line of credit and notes payable, and (ii) bonds payable.
(9) Fixed charge coverage is calculated as Adjusted EBITDA divided by the sum of interest expense, principal amortization, and capitalized interest.
(3) Net operating income and straight line rent reflect 51% of the Market Square Joint Venture, in which CXP owns a 51% interest through an unconsolidated joint venture.
(4) Excludes adjustments for straight line rent related to lease terminations within general and administrative expense.
(5) Gross Real Estate Assets includes (i) land, (ii) building and improvements, (iii) intangible lease assets, (iv) construction in progress, and (v) intangible lease origination costs, less
(vi) intangible lease liabilities.
(6) Net debt is calculated as the total principal amount of debt outstanding less cash and cash equivalents and discount and fees on notes and bonds payable.
Columbia Property Trust, Inc.
Unaudited (in thousands)
3/31/2017 12/31/2016 9/30/2016 6/30/2016 3/31/2016
Assets:
Real estate assets, at cost:
Land 751,351$ 751,351$ 787,456$ 844,495$ 864,690$
Buildings and improvements 2,573,407 2,556,607 2,871,856 3,345,017 3,374,833
Buildings and improvements, accumulated depreciation (455,392) (435,457) (500,583) (603,088) (584,830)
Intangible lease asset 303,318 306,088 345,651 471,701 490,361
Intangible lease asset, accumulated amortization (115,904) (112,777) (141,451) (235,121) (244,578)
Construction in progress 36,278 36,188 28,888 14,176 11,223
Real estate assets held for sale - 593,297 350,301 53,143 -
Real estate assets held for sale, accumulated depreciation - (180,791) (111,425) (9,897) -
Total real estate assets 3,093,058$ 3,514,506$ 3,630,693$ 3,880,426$ 3,911,699$
Cash and cash equivalents 554,655 216,085 190,856 23,803 185,376
Tenant receivables, net of allowance for doubtful accounts 5,290 7,163 6,366 11,210 11,731
Straight line rent receivable 71,601 64,811 70,186 113,921 103,367
Prepaid expenses and other assets 40,647 24,275 24,885 35,230 35,779
Intangible lease origination costs 126,849 128,857 140,380 227,769 244,740
Intangible lease origination costs, accumulated amortization (75,523) (74,578) (81,735) (161,994) (174,180)
Deferred lease costs 151,746 148,552 94,112 128,808 113,310
Deferred lease costs, accumulated amortization (24,561) (22,753) (33,729) (41,626) (38,808)
Investment in unconsolidated joint venture (page 9) 126,691 127,346 125,605 123,919 121,784
Investment in development authority bonds 120,000 120,000 120,000 120,000 120,000
Other assets held for sale - 79,681 55,431 10 -
Other assets held for sale, accumulated amortization - (34,152) (23,125) - -
Total assets 4,190,453$ 4,299,793$ 4,319,925$ 4,461,476$ 4,634,798$
Liabilities:
Line of credit and notes payable 650,196$ 724,602$ 824,992$ 1,060,365$ 1,208,722$
Bonds payable 700,000 700,000 700,000 600,000 600,000
Discount and fees on notes and bonds payable (9,663) (10,164) (10,643) (7,856) (8,535)
125,743 131,028 81,617 86,010 85,351
Distributions payable - 36,727 - - -
Deferred income 19,329 19,694 20,411 23,793 21,886
Intangible lease liabilities 74,729 77,939 82,719 134,943 135,252
Intangible lease liabilities, accumulated amortization (43,750) (44,564) (46,480) (85,547) (82,098)
Obligations under capital leases 120,000 120,000 120,000 120,000 120,000
Liabilities held for sale - 43,002 16,854 132 -
Liabilities held for sale, accumulated amortization - (1,239) (1,210) - -
Total liabilities 1,636,584$ 1,797,025$ 1,788,260$ 1,931,840$ 2,080,578$
Equity:
Common stock 1,224$ 1,221$ 1,234$ 1,234$ 1,234$
Additional paid in capital 4,539,144 4,538,912 4,565,651 4,564,729 4,563,537
Cumulative distributions in excess of earnings (1,986,250) (2,036,482) (2,027,155) (2,027,012) (2,003,258)
Other comprehensive loss (249) (883) (8,065) (9,315) (7,293)
Total equity 2,553,869$ 2,502,768$ 2,531,665$ 2,529,636$ 2,554,220$
Total liabilities and equity 4,190,453$ 4,299,793$ 4,319,925$ 4,461,476$ 4,634,798$
Supplemental Information - Q1 2017 8
Consolidated Balance Sheet - GAAP
As of Period End
Accounts payable, accrued expenses, and accrued capital
expenditures
Columbia Property Trust, Inc.
Unaudited (in thousands)
3/31/2017 12/31/2016 9/30/2016 6/30/2016 3/31/2016
Assets:
Real estate assets, at cost:
Land 77,841$ 77,841$ 77,840$ 77,840$ 77,840$
Buildings and improvements 203,973 203,534 203,002 199,761 198,480
Buildings and improvements, accumulated depreciation (9,375) (7,708) (6,037) (4,361) (2,736)
Intangible lease asset 2,214 2,222 2,221 2,361 2,414
Intangible lease asset, accumulated amortization (861) (723) (571) (527) (371)
Construction in progress 1,826 1,700 1,544 2,344 1,446
Total real estate assets 275,618$ 276,866$ 277,999$ 277,418$ 277,073$
Cash and cash equivalents 2,352 4,794 2,309 3,617 1,254
Tenant receivables, net of allowance for doubtful accounts 179 122 192 202 266
Straight line rent receivable 7,175 6,272 5,309 4,606 4,317
Prepaid expenses and other assets 306 170 215 239 294
Intangible lease origination costs 1,524 1,526 1,526 1,563 1,572
Intangible lease origination costs, accumulated amortization (425) (353) (278) (231) (151)
Deferred lease costs 15,120 14,833 11,678 10,600 10,631
Deferred lease costs, accumulated amortization (1,503) (1,168) (834) (563) (348)
Total assets 300,346$ 303,062$ 298,116$ 297,451$ 294,908$
Liabilities:
Line of credit and notes payable 165,750$ 165,750$ 165,750$ 165,750$ 165,750$
Fees on notes payable (169) (176) (181) (191) (196)
5,477 7,604 4,058 4,852 4,418
Deferred income 748 569 791 885 763
Intangible lease liabilities 2,548 2,561 2,561 2,644 2,658
Intangible lease liabilities, accumulated amortization (699) (592) (468) (408) (269)
Total liabilities 173,655$ 175,716$ 172,511$ 173,532$ 173,124$
Investment in unconsolidated joint venture (page 8) 126,691$ 127,346$ 125,605$ 123,919$ 121,784$
Supplemental Information - Q1 2017 9
Elements of Pro-Rata Balance Sheet - CXP's Interest in Unconsolidated Joint Venture (1)
As of Period End
Accounts payable, accrued expenses, and accrued capital
expenditures
(1) Reflects 51% of the assets and liabilities of the Market Square Joint Venture, in which CXP owns a 51% interest through an unconsolidated joint venture.
Unaudited (in thousands, except per-share amounts)
3/31/2017 12/31/2016 9/30/2016 6/30/2016 3/31/2016
Revenues:
Rental income 71,173$ 85,472$ 87,561$ 93,567$ 99,586$
Tenant reimbursements 8,584 14,219 17,090 18,708 19,753
Hotel income 1,339 5,177 6,270 6,551 4,663
Other property income (1) 765 793 827 919 1,009
Lease termination income (2) 295 107 1,518 8,185 1,568
Total revenues 82,156$ 105,768$ 113,266$ 127,930$ 126,579$
Operating expenses:
Property operating costs 24,105 34,289 39,101 40,242 41,336
Hotel operating costs 2,076 4,371 4,946 5,038 4,331
Asset and property management fees 269 357 387 341 330
Depreciation 21,605 24,026 26,778 28,450 29,289
Amortization 9,457 13,873 11,895 14,932 16,075
General and administrative 8,768 8,158 7,467 7,761 10,490
Total operating expenses 66,280$ 85,074$ 90,574$ 96,764$ 101,851$
Operating income 15,876$ 20,694$ 22,692$ 31,166$ 24,728$
Other income (expense):
Interest expense (13,315) (13,394) (15,338) (15,580) (16,097)
Capital lease obligation interest expense (1,800) (1,800) (1,800) (1,800) (1,800)
Development authority bond income 1,800 1,800 1,800 1,800 1,800
Interest and other income 550 36 39 8 5
Loss on early extinguishment of debt (45) - (18,905) (92) -
Total other income (expense) (12,810)$ (13,358)$ (34,204)$ (15,664)$ (16,092)$
3,066$ 7,336$ (11,512)$ 15,502$ 8,636$
Income tax benefit (expense) 388 (58) (65) (245) (77)
3,454$ 7,278$ (11,577)$ 15,257$ 8,559$
Loss from unconsolidated joint venture (page 11) (1,885) (2,120) (1,937) (1,952) (1,552)
1,569$ 5,158$ (13,514)$ 13,305$ 7,007$
Gain (loss) on sale of real estate assets 73,153 22,242 50,412 (19) (310)
74,722$ 27,400$ 36,898$ 13,286$ 6,697$
122,003 122,709 123,215 123,206 123,393
0.61$ 0.22$ 0.30$ 0.11$ 0.05$
122,329 122,855 123,350 123,294 123,412
0.61$ 0.22$ 0.30$ 0.11$ 0.05$
(1) Other property income includes (i) property management fee income, (ii) cafeteria revenue and (iii) fitness center revenue.
Supplemental Information - Q1 2017 10
(2) Includes adjustments for straight-line rent related to lease terminations.
Income (loss) before gain (loss) on sale of real estate
assets
Net income
Weighted-average common shares outstanding - basic
Net income per share - basic
Weighted-average common shares outstanding - diluted
Net income per share - diluted
Income (loss) before loss from unconsolidated joint
venture and gains on sale of real estate assets
Columbia Property Trust, Inc.
Consolidated Statements of Operations - GAAP
Three Months Ended
Income (loss) before income tax expense, loss from
unconsolidated joint venture and gains on sale
of real estate assets
Unaudited (in thousands, except per-share amounts)
3/31/2017 12/31/2016 9/30/2016 6/30/2016 3/31/2016
Revenues:
Rental income 4,045$ 4,022$ 4,025$ 3,838$ 4,563$
Tenant reimbursements 1,123 1,080 966 1,148 1,384
Total revenues 5,168$ 5,102$ 4,991$ 4,986$ 5,947$
Operating expenses:
Property operating costs 2,585 2,762 2,449 2,497 2,582
Asset and property management fees 239 236 240 250 278
Depreciation 1,668 1,671 1,675 1,626 1,808
Amortization 430 435 448 451 662
General and administrative 21 8 5 5 62
Total operating expenses 4,943$ 5,112$ 4,817$ 4,829$ 5,392$
Operating income 225$ (10)$ 174$ 157$ 555$
Other income (expense):
Interest expense (2,108) (2,108) (2,108) (2,108) (2,107)
Interest and other income - - - 1 -
Total other income (expense) (2,108)$ (2,108)$ (2,108)$ (2,107)$ (2,107)$
(1,883)$ (2,118)$ (1,934)$ (1,950)$ (1,552)$
Income tax expense (2) (2) (3) (2) -
(1,885)$ (2,120)$ (1,937)$ (1,952)$ (1,552)$
Supplemental Information - Q1 2017 11
(1) Reflects 51% of the revenues and expenses of the Market Square Joint Venture, in which CXP owns a 51% interest through an unconsolidated joint venture.
Loss from unconsolidated joint venture (page 10)
Columbia Property Trust, Inc.
Elements of Pro-Rata Statement of Operations - CXP's Interest in Unconsolidated Joint Venture (1)
Three Months Ended
Net loss before income tax expense
Unaudited (in thousands, except per-share amounts)
3/31/2017 12/31/2016 9/30/2016 6/30/2016 3/31/2016
Net Operating Income (based on GAAP rents) 58,050$ 68,855$ 71,151$ 84,548$ 83,669$
General and administrative (G&A) (8,768) (8,158) (7,467) (7,761) (10,490)
Interest expense (net) (14,565) (15,158) (17,116) (17,372) (17,892)
Interest income from development authority bonds 1,800 1,800 1,800 1,800 1,800
Income tax benefit (expense) 388 (58) (65) (245) (77)
(2,131) (2,118) (2,116) (2,114) (2,169)
Normalized FFO 34,774$ 45,163$ 46,187$ 58,856$ 54,841$
Normalized FFO per share (basic) 0.29$ 0.37$ 0.37$ 0.48$ 0.44$
Normalized FFO per share (diluted) 0.28$ 0.37$ 0.37$ 0.48$ 0.44$
Net Operating Income (based on cash rents) 50,410$ 61,132$ 64,895$ 79,075$ 76,380$
General and administrative (G&A) (8,768) (8,158) (7,467) (7,761) (10,490)
Stock based compensation expense in G&A (1) 1,691 1,046 917 1,213 1,382
Straight-line rent receivable write-off in G&A (2) - 2 233 79 160
Interest expense - cash (net) (11,993) (12,574) (14,479) (14,655) (15,080)
Income tax benefit (expense) 388 (58) (65) (245) (77)
(2,124) (2,111) (2,108) (2,108) (2,138)
Maintenance capital (3) (4) (1,675) (82,311) (11,637) (14,575) (3,671)
AFFO 27,929$ (43,032)$ 30,289$ 41,023$ 46,466$
122,003 122,709 123,215 123,206 123,393
122,329 122,855 123,350 123,294 123,412
(3) Reflects 51% of the net operating income of the Market Square Joint Venture, in which CXP owns a 51% interest through an unconsolidated joint venture.
Supplemental Information - Q1 2017 12
(1) This item represents the noncash impact of compensation expense related to stock grants under our 2013 Long-Term Incentive Plan within general and
administrative expense.
(2) Includes adjustments for straight-line rent related to lease terminations within general and administrative expense.
(4) See page 31 of this supplemental report for a description of Maintenance Capital and page 25 for a detail of all capital expenditures.
Columbia Property Trust, Inc.
Normalized Funds From Operations (NFFO) & Adjusted Funds From Operations (AFFO)
Three Months Ended
Weighted-average common shares outstanding - basic
Weighted-average common shares outstanding - diluted
Adjustments included in loss from unconsolidated
joint venture
Adjustments included in loss from unconsolidated
joint venture
Unaudited (in thousands)
3/31/2017 12/31/2016 9/30/2016 6/30/2016 3/31/2016
Net Operating Income (based on GAAP rents)
Revenues:
Rental Income 67,520$ 66,983$ 61,836$ 67,379$ 68,849$
Tenant Reimbursements 7,918 8,419 6,831 9,687 8,461
Other Property Income 784 699 663 673 727
Lease Termination Income 295 107 1,518 8,085 1,568
Total Revenues 76,517$ 76,208$ 70,848$ 85,824$ 79,605$
Operating Expenses:
Property Operating Costs (21,666) (21,985) (22,067) (23,764) (23,378)
Total Operating Expenses (21,666)$ (21,985)$ (22,067)$ (23,764)$ (23,378)$
54,851$ 54,223$ 48,781$ 62,060$ 56,227$
2,344$ 2,104$ 2,301$ 2,239$ 3,088$
Net Operating Income from:
Acquisitions - - - - -
Dispositions (3) 855 12,528 20,069 20,249 24,354
Net Operating Income (based on GAAP rents) 58,050$ 68,855$ 71,151$ 84,548$ 83,669$
Net Operating Income (based on cash rents)
Revenues:
Rental Income 59,921$ 58,941$ 58,876$ 64,558$ 65,078$
Tenant Reimbursements 7,918 8,419 6,831 9,687 8,461
Other Property Income 784 699 663 673 727
Lease Termination Income 295 107 1,518 8,085 1,568
Total Revenues 68,918$ 68,166$ 67,888$ 83,003$ 75,834$
Operating Expenses:
Property Operating Costs (20,804) (21,348) (21,431) (23,126) (22,741)
Total Operating Expenses (20,804)$ (21,348)$ (21,431)$ (23,126)$ (22,741)$
48,114$ 46,818$ 46,457$ 59,877$ 53,093$
1,446$ 1,144$ 1,550$ 1,868$ 2,657$
Net Operating Income from:
Acquisitions - - - - -
Dispositions (3) 850 13,170 16,888 17,330 20,630
Net Operating Income (based on cash rents) 50,410$ 61,132$ 64,895$ 79,075$ 76,380$
Supplemental Information - Q1 2017 13
Same Store Net Operating Income (based on GAAP rents)
wholly-owned properties (1)
Same Store Net Operating Income (based on GAAP rents)
51% of Market Square Buildings (2)
Columbia Property Trust, Inc.
Net Operating Income
Three Months Ended
Same Store Net Operating Income (based on cash rents)
51% of Market Square Buildings (2)
Same Store Net Operating Income (based on cash rents)
wholly-owned properties (1)
(3) Reflects activity for the following properties sold since January 1, 2016, for all periods presented: Key Center Tower, Key Center Marriott, 5 Houston Center,
Energy Center, 515 Post Oak, SanTan Corporate Center, Sterling Commerce, 80 Park Plaza, 9127, 9189, 9191 & 9193 S. Jamaica Street, 800 North Frederick, 100
East Pratt.
(1) Reflects NOI from properties that were wholly-owned for the entirety of the periods presented.
(2) Reflects NOI from 51% of the Market Square Buildings for all periods presented. On October 28, 2015, we transferred the Market Square Buildings and the
$325.0 million mortgage note to a joint venture, and sold a 49% interest in the joint venture.
Unaudited ($ in thousands) (at 3/31/2017)
Debt Instrument - Secured Maturity Rate Rate Type Balance % of Total Debt
Mortgage Debt
263 Shuman Boulevard July-17 5.55% Fixed 49,000$ (1) 3.2%
One Glenlake Parkway December-18 5.80% Fixed 25,547 1.7%
650 California Street July-19 3.60% Fixed 125,649 8.3%
Market Square July-23 5.07% Fixed 165,750 (2) 10.9%
Weighted Average / Secured - Mortgage Notes 3.8 Years 4.68% 365,946$ 24.1%
Debt Instrument - Unsecured Maturity Rate Rate Type Balance % of Total Debt
Bank Facilities
$500 Million Revolving Credit Facility (3) July-19 LIBOR + 100 bps Floating -$ 0.0%
$300 Million Term Loan (4) July-20 LIBOR + 110 bps Floating 300,000 19.8%
$150 Million Term Loan (5) July-22 3.52% Fixed 150,000 9.9%
Weighted Average / Bank Facilities 4.0 Years 2.44% 450,000$ 29.7%
Bonds
$350 Million @ 4.150% April-25 4.15% Fixed 350,000$ 23.1%
$350 Million @ 3.650% August-26 3.65% Fixed 350,000 23.1%
Weighted Average / Bonds 8.7 Years 3.90% 700,000$ 46.2%
Weighted Average / Unsecured 6.9 Years 3.33% 1,150,000$ 75.9%
Weighted Average / Total Debt 6.1 Years 3.65% 1,515,946$ 100.0%
Debt - consolidated 1,350,196$
Debt - unconsolidated 165,750
Total Debt 1,515,946$
Weighted Ave
Maturity
Weighted Ave
Rate - Qtr Balance % of Total Debt
6.8 Years 4.09% 1,215,946$ 80.2%
3.3 Years 1.89% 300,000 19.8%
Total 6.1 Years 3.65% 1,515,946$ 100.0%
(2) Reflects 51% of the mortgage balance of the Market Square Joint Venture, in which CXP owns a 51% interest through an unconsolidated joint venture.
Supplemental Information - Q1 2017 14
(5) Columbia Property Trust is party to an interest rate swap agreement, which effectively fixes its interest rate on the $150 Million Term Loan at 3.52% per annum
and terminates on July 29, 2022. The spread of 1.55% over the swapped rate is based on the company's credit rating. This interest rate swap agreement qualifies
for hedge accounting treatment; therefore, changes in fair value are recorded as a market value adjustment to interest rate swap in our consolidated statements of
other comprehensive income.
Columbia Property Trust, Inc.
Debt Overview
(4) The $300 Million Term Loan bears interest at a rate based on, at the option of Columbia Property Trust, LIBOR for seven days, one-, two-, three-, or six-month
periods, plus an applicable margin ranging from 0.90% to 1.75% based on credit rating, or the alternate base rate which is the greater of (a) Prime Rate, (b) Fed
Funds plus 1/2 of 1%, and (c) the Libor Rate plus 1%, plus an applicable margin ranging from 0.00% to 0.75% based on credit rating.
Fixed and Floating Rate Debt Analysis
Fixed Rate Debt
Floating Rate Debt
(3) The Revolving Credit Facility ($500MM) bears interest at a rate based on, at the option of Columbia Property Trust, LIBOR for seven days, one-, two-, three-, or six-
month periods, plus an applicable margin ranging from 0.875% to 1.55% based on credit rating, or the alternate base rate which is the greater of (a) Prime Rate, (b)
Fed Funds plus 1/2 of 1%, and (c) the Libor Rate plus 1%, plus an applicable margin ranging from 0.00% to 0.55% based on credit rating. This facility carries two six-
month extension options.
(1) In January 2017, the lender put this mortgage note into non-monetary default because the full-building lease with OfficeMax was not renewed, as required by
the loan agreement. OfficeMax vacated the property in 2015, and the lease will expire in May 2017. Columbia Property Trust is in process of working to transfer this
property to the lender.
Unaudited (at 3/31/2017)
Bond Covenant Compliance Metric Actual (3/31/17)
Debt to Total Asset Value Ratio Max 60% 30%
Interest Coverage Ratio (adjusted EBITDA) Min 1.50x 2.86x
Secured Debt to Total Asset Value Ratio Max 40% 4%
Maintenance of Total Unencumbered Assets Min 150% 346%
Term Loan / Revolving Credit Facility Covenant Compliance Metric Actual (3/31/17)
Debt to Total Asset Value Ratio Max 60% 29%
Interest Coverage Ratio (adjusted EBITDA) Min 1.50x 2.45x
Secured Debt to Total Asset Value Ratio Max 40% 9%
Unencumbered Asset Coverage Ratio Min 1.66x 4.27x
Unencumbered Interest Coverage Ratio Min 1.75x 4.56x
Supplemental Information - Q1 2017 15
Columbia Property Trust, Inc.
Debt Covenant Compliance
Unaudited ($ in thousands) (at 3/31/2017)
Secured Unsecured Unsecured % of Interest % of Gross
Mortgage Debt Term Loans Bonds Total Debt Total Debt Rate (1) Real Estate Assets
49,000$ (2) -$ -$ 49,000$ 3.2% 5.55% 1.2%
25,547 - - 25,547 1.7% 5.80% 0.6%
125,649 - - 125,649 8.3% 3.60% 3.1%
- 300,000 - 300,000 19.8% 1.89% 7.5%
- 150,000 - 150,000 9.9% 3.52% 3.8%
165,750 - - 165,750 10.9% 5.07% 4.1%
- - 350,000 350,000 23.1% 4.15% 8.8%
- - 350,000 350,000 23.1% 3.65% 8.8%
365,946$ 450,000$ 700,000$ 1,515,946$ 100.0% 3.65% 37.9%
24.1% 29.7% 46.2%
Supplemental Information - Q1 2017 16
2019
2020
2022
2023
(2) In January 2017, the lender put the $49 million 263 Shuman mortgage note into non-monetary default because the full-building lease with OfficeMax was not
renewed, as required by the loan agreement. OfficeMax vacated the property in 2015, and the lease will expire in May 2017. Columbia Property Trust is in
process of working to transfer this property to the lender.
Columbia Property Trust, Inc.
Debt Maturities
(1) Weighted average. Includes effective rates on variable rate loans swapped to fixed.
Maturity
2025
2026
Total
% of Total Debt
2017
2018
$49 (2)
$26
$126
$166
$300
$150
$350 $350
$0
$100
$200
$300
$400
$500
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Maturity Schedule ($M)
Mortgage Debt Term Loans Bonds
5.55%
5.07%
4.15% 3.65%
1.89%
3.52%
3.60%
5.80%
Columbia Property Trust, Inc.
Property Overview - Gross Real Estate Assets, Net Operating Income & Annualized Lease Revenue
Unaudited ($ in thousands) (at 3/31/2017)
Secured
Market Ownership % Debt?
229 West 43rd Street New York, NY 100% 510,481$ 35,670$ 6,915$ 6,772$
315 Park Avenue South New York, NY 100% 372,757 24,372 3,528 1,533
222 East 41st Street New York, NY 100% 299,052 15,318 (2) 3,394 (227)
95 Columbus Jersey City, NJ 100% 203,803 24,473 3,780 4,065
Subtotal - New York 1,386,093 99,833 17,617 12,143
333 Market Street San Francisco, CA 100% 408,640 24,830 (3) 6,362 5,903
650 California Street San Francisco, CA 100% Yes 318,615 24,951 2,883 2,009
University Circle East Palo Alto, CA 100% 279,516 39,219 6,544 6,533
221 Main Street San Francisco, CA 100% 241,213 22,757 4,077 3,348
Subtotal - San Francisco 1,247,984 111,757 19,866 17,793
Lindbergh Center Atlanta, GA 100% 288,447 22,183 (3) 5,596 5,535
Three Glenlake Parkway Atlanta, GA 100% 102,171 7,608 (3) 1,761 1,881
One Glenlake Parkway Atlanta, GA 100% Yes 72,612 7,901 935 923
Subtotal - Atlanta 463,230 37,692 8,292 8,339
Market Square Washington, D.C. 51% Yes 284,830 (4) 22,432 (4) 2,344 (4) 1,446 (4)
80 M Street Washington, D.C. 100% 96,765 13,332 1,010 1,109
Subtotal - Washington, D.C. 381,595 35,764 3,354 2,555
Cranberry Woods Drive Pittsburgh, PA 100% 184,996 15,706 (3) 4,152 4,096
116 Huntington Avenue Boston, MA 100% 162,039 10,943 1,387 1,448
Pasadena Corporate Park Los Angeles, CA 100% 111,677 8,038 1,082 1,191
Subtotal - Other 458,712 34,687 6,621 6,735
263 Shuman Boulevard Chicago, IL 100% Yes 63,192 - (5) 999 1,550
Subtotal - Dispositions 63,192 - 999 1,550
Corporate & Other 498 - 1,301 (6) 1,295 (6)
Total - All Properties (4) 4,001,304$ 319,733$ 58,050$ 50,410$
Total - wholly-owned properties 3,716,474$ 297,301$ 55,706$ 48,964$
Total - 51% of Market Square Buildings 284,830$ 22,432$ 2,344$ 1,446$
Supplemental Information - Q1 2017
Net Operating Net Operating
Gross Annualized Income - Q1 2017 Income - Q1 2017
Real Estate Lease (based on (based on
Property Assets (1) Revenue (ALR) GAAP rents) cash rents)
17
(1) Gross Real Estate Assets includes (i) land, (ii) building and improvements, (iii) intangible lease assets, (iv) construction in progress, and (v) intangible lease origination
costs, less (vi) intangible lease liabilities.
(2) Reimbursements are excluded as operating expenses are paid directly by the tenant.
(3) Except for insurance expense, reimbursements are excluded as operating expenses are paid directly by the tenant.
(4) Reflects 51% of the gross real estate assets, ALR and NOI of the Market Square Joint Venture, in which CXP owns a 51% interest through an unconsolidated joint
venture.
(5) Pro forma for the planned return of the property to the lender.
(6) Includes net operating income for the following properties sold during the quarter: Key Center Tower, Key Center Marriott, 5 Houston Center, Energy Center, and 515
Post Oak.
Columbia Property Trust, Inc.
Property Overview - Square Feet & Occupancy
Unaudited (SF in thousands) (at 3/31/2017)
Average
Percent Commenced Economic
Market Ownership % Leased Occupancy Occupancy (1)
229 West 43rd Street New York, NY 100% 481 481 100.0% 100.0% 100.0%
315 Park Avenue South New York, NY 100% 328 298 90.9% 83.0% 63.7%
222 East 41st Street New York, NY 100% 390 390 100.0% 100.0% 0.0%
95 Columbus Jersey City, NJ 100% 629 620 98.6% 98.6% 97.7%
Subtotal - New York 1,828 1,789 97.9% 96.5% 71.4%
333 Market Street San Francisco, CA 100% 657 657 100.0% 100.0% 100.0%
650 California Street San Francisco, CA 100% 478 380 79.5% 66.7% 59.5%
University Circle East Palo Alto, CA 100% 451 446 98.9% 92.6% 92.0%
221 Main Street San Francisco, CA 100% 379 338 89.2% 88.0% 87.9%
Subtotal - San Francisco 1,965 1,821 92.7% 87.9% 86.0%
Lindbergh Center Atlanta, GA 100% 955 955 100.0% 100.0% 100.0%
Three Glenlake Parkway Atlanta, GA 100% 355 355 100.0% 100.0% 100.0%
One Glenlake Parkway Atlanta, GA 100% 351 278 79.2% 75.5% 71.8%
Subtotal - Atlanta 1,661 1,588 95.6% 94.8% 94.0%
Market Square Washington, D.C. 51% 356 (2) 275 (2) 77.2% 72.6% 56.9%
80 M Street Washington, D.C. 100% 285 262 91.9% 63.6% 62.3%
Subtotal - Washington, D.C. 641 537 83.8% 70.0% 59.3%
Cranberry Woods Drive Pittsburgh, PA 100% 824 824 100.0% 100.0% 100.0%
116 Huntington Avenue Boston, MA 100% 272 205 75.4% 73.5% 75.0%
Pasadena Corporate Park Los Angeles, CA 100% 264 249 94.3% 94.3% 94.3%
Subtotal - Other 1,360 1,278 94.0% 93.6% 93.9%
263 Shuman Boulevard Chicago, IL 100% - (3) - (3) - - -
Subtotal - Dispositions - - - - -
Total - All Properties (2) 7,455 7,013 94.1% 90.1% 83.3%
Total - All Properties (at 100%) 7,797 (4) 7,277 (4)
Supplemental Information - Q1 2017 18
(4) Includes 100% of Market Square: 698K rentable square feet and 539K leased square feet.
Rentable Leased
Property Square Feet Square Feet
(1) Total square feet of leases that have commenced and the tenant is paying rent divided by total rentable square feet. Monthly average for the current quarter.
(2) Reflects 51% of the square feet of the Market Square Joint Venture, in which CXP owns a 51% interest through an unconsolidated joint venture.
(3) Pro forma for the planned return of the property to the lender.
Unaudited ($ in thousands) (at 3/31/2017)
% Gross
Real Estate
State
Number of
Properties Assets
New York NY 4 1,386,093$ 34.6%
San Francisco CA 4 1,247,984 31.2%
Atlanta GA 3 463,230 11.6%
Washington, D.C. DC 2 381,595 (2) 9.5%
Pittsburgh PA 1 184,996 4.6%
Boston MA 1 162,039 4.0%
Los Angeles CA 1 111,677 2.8%
Dispositions & Other various 1 63,690 1.7%
Total 17 4,001,304$ 100.0%
Supplemental Information - Q1 2017 19
(2) Reflects 51% of the gross real estate assets of the Market Square Joint Venture, in which CXP owns a 51% interest through an unconsolidated joint venture.
(1) Gross Real Estate Assets includes (i) land, (ii) building and improvements, (iii) intangible lease assets, (iv) construction in progress, and (v) intangible lease
origination costs, less (vi) intangible lease liabilities.
Columbia Property Trust, Inc.
Market Summary
Geography
Gross
Real Estate
Assets (1)
34.6%
31.2%
11.6%
9.5%
4.6%
4.0%
2.8%1.7%
Market Distribution by Gross Real Estate Assets
Boston
Los Angeles
Pittsburgh
Dispositions &
Other
Washington, D.C. New York
San Francisco
Atlanta
Unaudited (SF & $ in thousands) (at 3/31/2017)
Tenant
Credit Rating
(2)
Number of
Properties
Annualized Lease
Revenue (ALR) (3) % of ALR
Leased
Square
Footage
% of Leased
Square
Footage
Remaining
Lease Term
Years (4)
Wells Fargo Bank N.A. AA- 3 26,408$ 8.3% 673 9.6% 9.1
AT&T Corporation/AT&T Services BBB+ 1 22,183 6.9% 955 13.6% 3.8
Pershing LLC A 1 18,278 5.7% 471 6.7% 4.2
Westinghouse Electric Company Not Rated 1 15,706 4.9% 824 11.8% 8.2
Credit Suisse A 2 14,884 4.7% 192 2.7% 1.0
NYU AA- 1 14,802 4.6% 390 5.6% 31.3
Yahoo! BB+ 1 14,556 4.5% 193 2.8% 8.3
Newell Rubbermaid, Inc. BBB- 2 9,164 2.9% 411 5.9% 3.6
DocuSign, Inc. Not Rated 1 8,794 2.8% 117 1.7% 7.3
DLA Piper US, LLP Not Rated 1 8,423 2.6% 119 1.7% 1.3
Amazon Web Services, Inc. AA- 1 8,178 2.6% 90 1.3% 4.3
WeWork Companies Inc. Not Rated 2 7,414 2.3% 129 1.8% 13.8
Snap Inc. Not Rated 1 5,790 1.8% 73 1.0% 10.3
Quality Technology Services Not Rated 1 5,200 1.6% 128 1.8% 9.5
MongoDB, Inc. Not Rated 1 4,698 1.5% 64 0.9% 1.8
Green Dot Corporation Not Rated 1 4,196 1.3% 142 2.0% 5.6
Oracle America, Inc. AA- 2 4,121 1.3% 85 1.2% 5.7
ORC International Not Rated 1 3,859 1.2% 57 0.8% 8.3
Prosper Marketplace, Inc. Not Rated 1 3,713 1.2% 50 0.7% 5.9
Winton Capital US LLC Not Rated 1 3,486 1.1% 35 0.5% 10.3
Subtotal - Top 20 203,853$ 63.8% 5,198 74.1% 8.0
All other 115,880 36.2% 1,815 25.9% 5.1
Total 319,733$ 100.0% 7,013 100.0% 6.9
(1) Pro forma for the planned return of 263 Shuman Boulevard to the lender.
(2) Credit rating may reflect the credit rating of the parent or a guarantor. Only the Standard & Poor's credit rating has been provided.
(3) Reflects 51% of the ALR of the Market Square Joint Venture, in which CXP owns a 51% interest through an unconsolidated joint venture.
(4) Weighted average based on CXP's share of Annualized Lease Revenue.
Supplemental Information - Q1 2017 20
Columbia Property Trust, Inc.
Top 20 Tenants & Tenant Industry Profile (1)
20.1%
13.7%
8.8%
7.2%7.0%
6.2%
5.9%
5.2%
4.4%
3.4%
18.1%
Tenant Industry Profile (3)
Services - Business Services
Fire - Depository Institutions
Services - Legal Services
Trans & Util - Electric, Gas,
and Sanitary Services
Trans & Util - Communication
Services - Engineering &
Management Services
Fire - Security and
Commodity Brokers
Services - Health Services
Other
Fire - Real Estate
Fire - Nondepository Institutions
Unaudited (SF & $ in thousands) (at 3/31/2017)
Expiring Annualized Lease
Revenue (ALR) % of ALR Expiring
Expiring Rentable Square
Footage
% of Rentable Square Footage
Expiring
-$ 0.0% 442 5.9%
21,588 6.8% 322 4.3%
16,506 5.2% 246 3.3%
16,941 5.3% 238 3.2%
27,936 8.7% 690 9.3%
62,759 19.6% 1,754 23.5%
21,857 6.8% 426 5.7%
18,384 5.7% 348 4.7%
13,031 4.1% 196 2.6%
38,835 12.1% 1,133 15.2%
31,498 9.9% 809 10.9%
11,713 3.7% 142 1.9%
3,451 1.1% 46 0.6%
4,338 1.4% 64 0.9%
4,209 1.3% 51 0.7%
26,687 8.3% 548 7.3%
319,733$ 100.0% 7,455 100.0%
Supplemental Information - Q1 2017 21
(1) Pro forma for the planned return of 263 Shuman Boulevard to the lender.
2029
2030
2031+
Total
NOTE: Expirations that have been renewed are reflected above based on the renewal expiration date.
2028
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
Vacant
Columbia Property Trust, Inc.
Lease Expiration Schedule (1)
Year
6.8%
5.2% 5.3%
8.7%
19.6%
6.8%
5.7%
4.1%
12.1%
9.9%
3.7%
1.1% 1.4% 1.3%
8.3%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031+
Lease Expiration Schedule
% of ALR Expiring
Columbia Property Trust, Inc.
Unaudited (SF & $ in thousands)
Geography
Expiring
ALR (2)
Expiring
ALR (2)
Expiring
ALR (2)
Expiring
ALR (2)
Expiring SF
Expiring
ALR (2)
New York 138 (3) 10,904$ 48 (4) 3,364$ 1 71$ - -$ 187 14,339$
San Francisco 58 (5) 2,872 34 1,864 4 200 20 1,108 116 6,044
Atlanta - - - - 3 85 - - 3 85
Washington, D.C. (6) 13 933 5 272 15 883 4 151 37 2,239
Pittsburgh - - - - - - - - - -
Boston 3 140 - - - - 1 64 4 204
Los Angeles - - - - - - - - - -
Total 212 14,849$ 87 5,500$ 23 1,239$ 25 1,323$ 347 22,911$
% of Total Portfolio 2.9% 4.7% 1.2% 1.7% 0.3% 0.4% 0.3% 0.4% 4.7% 7.2%
(1) Pro forma for the planned return of 263 Shuman Boulevard to the lender.
(2) Expiring ALR is calculated as expiring square footage multiplied by the gross rent per square foot of the tenant currently leasing the space.
(3) Includes 130,000 square feet for Credit Suisse at 315 Park Avenue South of which 32,000 square feet has been preleased to new tenants.
(4) Includes 48,000 square feet at 229 West 43rd Street which has been preleased to Snap, Inc.
(5) Includes 54,000 square feet for Goodby Silverstein at 650 California Street of which 34,000 square feet has been preleased to new tenants.
(6) Reflects 51% of the ALR of the Market Square Joint Venture, in which CXP owns a 51% interest through an unconsolidated joint venture.
Supplemental Information - Q1 2017 22
Expiring SFExpiring SF Expiring SF Expiring SF
Lease Expiration by Market (1)
Three Months Ended
6/30/17 9/30/17 12/31/17 3/31/18 Total
Unaudited (weighted average unless otherwise noted)
3/31/2017 12/31/2016 9/30/2016 6/30/2016 3/31/2016
Renewal Leases
Number of Leases 6 6 7 4 4
Square Feet of Leasing (at 100%) 138,545 33,789 112,828 155,236 13,155
Square Feet of Leasing (at CXP's share) (1) 135,356 22,554 92,625 148,489 11,985
Lease Term (months) 36 60 75 87 25
Cash Rent Releasing Spread (2) 0.7% 15.3% 18.3% 10.5% -1.1%
GAAP Rent Releasing Spread (2) 2.6% 35.4% 26.3% 25.9% 1.1%
Tenant Improvements per Square Foot 10.74 21.18 50.85 25.29 2.47
Leasing Commissions per Square Foot 10.20 16.43 16.98 10.39 8.46
Total per Square Foot 20.94$ 37.61$ 67.83$ 35.68$ 10.93$
Tenant Improvements per Square Foot per Year of Lease Term 3.56 4.25 8.09 3.51 1.17
Leasing Commissions per Square Foot per Year of Lease Term 3.38 3.30 2.70 1.44 4.00
Total per Square Foot per Year 6.94$ 7.55$ 10.79$ 4.95$ 5.17$
New Leases (Space Vacant > 1 Year)
Number of Leases 6 7 4 1 -
Square Feet of Leasing (at 100%) 49,455 53,622 35,858 34,844 -
Square Feet of Leasing (at CXP's share) (1) 47,173 41,642 34,388 34,844 -
Lease Term (months) 116 118 97 131 -
Tenant Improvements per Square Foot 87.48 106.58 31.36 74.04 -
Leasing Commissions per Square Foot 14.74 36.94 24.07 47.44 -
Total per Square Foot 102.22$ 143.52$ 55.43$ 121.48$ -$
Tenant Improvements per Square Foot per Year of Lease Term 9.03 10.82 3.89 6.78 -
Leasing Commissions per Square Foot per Year of Lease Term 1.52 3.75 2.99 4.35 -
Total per Square Foot per Year 10.55$ 14.57$ 6.88$ 11.13$ -$
New Leases (Space Vacant < 1 Year) (3)
Number of Leases 4 9 - 7 5
Square Feet of Leasing (at 100%) 93,385 173,995 - 413,917 52,095
Square Feet of Leasing (at CXP's share) (1) 93,385 173,995 - 412,182 49,239
Lease Term (months) 123 145 - 376 96
Cash Rent Releasing Spread (2) 128.6% 3.5% - -18.5% 50.2%
GAAP Rent Releasing Spread (2) 147.0% 15.3% - 15.4% 115.8%
Tenant Improvements per Square Foot 57.31 116.59 - 178.71 28.99
Leasing Commissions per Square Foot 17.91 26.97 - 44.63 21.83
Total per Square Foot 75.22$ 143.56$ -$ 223.34$ 50.82$
Tenant Improvements per Square Foot per Year of Lease Term 5.61 9.66 - 5.70 3.62
Leasing Commissions per Square Foot per Year of Lease Term 1.75 2.24 - 1.42 2.72
Total per Square Foot per Year 7.36$ 11.90$ -$ 7.12$ 6.34$
Total Leases
Number of Leases 16 22 11 12 9
Square Feet of Leasing (at 100%) 281,385 261,406 148,686 603,997 65,250
Square Feet of Leasing (at CXP's share) (1) 275,914 238,191 127,013 595,515 61,224
Lease Term (months) 104 135 82 361 95
Cash Rent Releasing Spread (2) 97.1% 4.5% 18.3% -17.7% 49.2%
GAAP Rent Releasing Spread (2) 111.4% 17.0% 26.3% 15.7% 113.6%
Tenant Improvements per Square Foot 53.41 108.05 44.59 171.14 28.49
Leasing Commissions per Square Foot 15.77 27.41 19.25 43.86 21.58
Total per Square Foot 69.18$ 135.46$ 63.84$ 215.00$ 50.07$
Tenant Improvements per Square Foot per Year of Lease Term 5.19 9.35 6.96 5.22 3.14
Leasing Commissions per Square Foot per Year of Lease Term 2.51 2.60 2.78 1.60 2.97
Total per Square Foot per Year 7.70$ 11.95$ 9.74$ 6.82$ 6.11$
(3) Includes executed leases that have not yet commenced for space covered by an existing lease.
Supplemental Information - Q1 2017 23
Columbia Property Trust, Inc.
Leasing Summary
Three Months Ended
(2) Spread calculation is based on the change in net rent (base rent plus reimbursements less operating expenses).
(1) Reflects 51% of the square feet of the Market Square Joint Venture, in which CXP owns a 51% interest through an unconsolidated joint venture.
Unaudited (SF in thousands) (at 3/31/2017)
Rentable Leased Percent
Square Footage Square Footage Leased
As of December 31, 2016 10,320 9,355 90.6%
Dispositions (1)
5 Houston (581) (438) 75.4%
Energy Center (332) (332) 100.0%
515 Post Oak (274) (218) 79.6%
Key Center Tower & Marriott (1,327) (1,085) 81.8%
263 Shuman Boulevard (2) (354) (354) 100.0%
Subtotal 7,452 6,928
Leasing Activity
New Leases (3) 3 172
Lease Expirations/Early Terminations (87)
Net Absorption 3 85
As of March 31, 2017 7,455 7,013 94.1%
3/31/16
Supplemental Information - Q1 2017 24
Columbia Property Trust, Inc.
Occupancy Summary
(3) New leasing activity for space that was either vacant at the beginning of the quarter or that became available due to expiration/termination of an existing
lease.
(1) As of disposition date.
(2) Pro forma for the planned return of 263 Shuman Boulevard to the lender.
94.1%
90.6% 90.7% 90.6%
92.4%
50%
60%
70%
80%
90%
100%
3/31/17 12/31/16 9/30/16 6/30/16 3/31/16
Percent Leased
Unaudited ($ in thousands)
3/31/2017 12/31/2016 9/30/2016 6/30/2016 3/31/2016
Maintenance
Building Capital 423$ 1,044$ 429$ 844$ 718$
Tenant Improvements 716 1,610 7,810 2,551 2,798
Leasing Commissions 358 10,319 2,181 10,060 426
Other Leasing Costs 178 69,338 1,217 1,120 (271)
Total - Maintenance 1,675$ 82,311$ 11,637$ 14,575$ 3,671$
Investment
Building Capital 9,069$ 7,192$ 7,975$ 1,994$ 4,519$
Tenant Improvements 8,961 8,800 7,723 3,000 3,744
Leasing Commissions 3,074 4,232 969 1,979 392
Other Leasing Costs 141 1,796 144 2,580 (572)
Total - Investment 21,245$ 22,020$ 16,811$ 9,553$ 8,083$
Maintenance & Investment
Building Capital 9,492$ 8,236$ 8,404$ 2,838$ 5,237$
Tenant Improvements 9,677 10,410 15,533 5,551 6,542
Leasing Commissions 3,432 14,551 3,150 12,039 818
Other Leasing Costs 319 71,134 1,361 3,700 (843)
Total - Maintenance & Investment 22,920$ 104,331$ 28,448$ 24,128$ 11,754$
(1) Reflects 51% of the capital expenditures of the Market Square Joint Venture, in which CXP owns a 51% interest through an unconsolidated joint venture.
NOTE: See page 31 of this supplemental report for a description of Maintenance and Investment Capital.
Supplemental Information - Q1 2017 25
Columbia Property Trust, Inc.
Capital Expenditure Summary (1)
Capital Expenditures Three Months Ended
Unaudited ($ in thousands) (at 4/27/2017)
Acquisitions
Location
Acquisition
Date
Percent
Ownership Purchase Price
Rentable Square
Footage $ / SF
% Leased at
Acquisition
229 West 43rd Street New York, NY 8/4/2015 100.0% 516,000$ 481,110 1,073$ 97.7%
315 Park Avenue South New York, NY 1/7/2015 100.0% 372,000 326,812 1,138 93.9%
1881 Campus Commons Reston, VA 1/7/2015 100.0% 64,000 244,565 262 78.0%
Subtotal (2 Property Portfolio) 436,000 571,377 763
116 Huntington Avenue Boston, MA 1/8/2015 100.0% 152,000 270,943 561 77.8%
Total - Acquisitions 1,104,000$ 1,323,430
Dispositions
Location
Disposition
Date
Percent
Ownership
Gross Sale
Price
Rentable Square
Footage $ / SF
% Leased at
Disposition
Key Center Tower Cleveland, OH 1/31/2017 100.0% 1,326,153 81.8%
Key Center Marriott Cleveland, OH 1/31/2017 100.0% NA
Subtotal (2 Property Portfolio) 267,500$ 1,326,153 NA
5 Houston Center Houston, TX 1/6/2017 100.0% 580,875 75.4%
Energy Center Houston, TX 1/6/2017 100.0% 332,000 100.0%
515 Post Oak Houston, TX 1/6/2017 100.0% 273,710 79.6%
Subtotal (3 Property Portfolio) 272,000 1,186,585 229$ 83.2%
SanTan Corporate Center Phoenix, AZ 12/15/2016 100.0% 58,500 266,531 219 100.0%
Sterling Commerce Dallas, TX 11/30/2016 100.0% 51,000 309,586 165 100.0%
9127 S. Jamaica Street Denver, CO 10/12/2016 100.0% 19,500 107,638 181 0.0%
80 Park Plaza Northern New Jersey 9/30/2016 100.0% 174,500 960,689 182 85.8%
9189, 9191 & 9193 S. Jamaica Street Denver, CO 9/22/2016 100.0% 122,000 370,485 329 100.0%
800 North Frederick Suburban Maryland 7/8/2016 100.0% 48,000 393,000 122 0.0%
100 East Pratt Baltimore, MD 3/31/2016 100.0% 187,000 653,135 286 98.5%
1881 Campus Commons Reston, VA 12/10/2015 100.0% 65,000 244,565 266 91.4%
180 Park Avenue Northern New Jersey 7/1/2015 100.0% 223,837 71.4%
170 Park Avenue Northern New Jersey 7/1/2015 100.0% 145,000 0.0%
1580 West Nursery Road Baltimore, MD 7/1/2015 100.0% 315,350 100.0%
Acxiom Chicago, IL 7/1/2015 100.0% 321,852 100.0%
Highland Landmark III Chicago, IL 7/1/2015 100.0% 272,975 68.1%
The Corridors III Chicago, IL 7/1/2015 100.0% 221,940 95.0%
215 Diehl Road Chicago, IL 7/1/2015 100.0% 161,865 100.0%
544 Lakeview Chicago, IL 7/1/2015 100.0% 139,218 51.1%
Bannockburn Lake III Chicago, IL 7/1/2015 100.0% 106,495 0.0%
Robbins Road Boston, MA 7/1/2015 100.0% 458,237 100.0%
550 King Street Boston, MA 7/1/2015 100.0% 490,119 100.0%
Subtotal (11 Property Portfolio) 433,250 2,856,888 152
Total - Dispositions (excluding Joint Venture) 1,698,250$ 8,675,255
Location Closing Date
% Sold /
Retained
Contributed
Value
Rentable Square
Footage $ / SF
% Leased at
Closing Date
Market Square Washington, D.C. 10/28/2015 49% / 51% 595,000$ 687,310 866$ 80.5%
Supplemental Information - Q1 2017 26
Columbia Property Trust, Inc.
Transaction Activity (2015 - 2017)
Property Name
Property Name
Property Contributed to Joint Venture
Unaudited (in thousands, except per-share amounts)
3/31/2017 12/31/2016 9/30/2016 6/30/2016 3/31/2016
Net Income 74,722$ 27,400$ 36,898$ 13,286$ 6,697$
Depreciation 21,605 24,026 26,778 28,450 29,289
Amortization 9,457 13,873 11,895 14,932 16,075
2,098 2,106 2,123 2,077 2,470
(Gain) loss on sale of real estate assets (73,153) (22,242) (50,412) 19 310
FFO 34,729$ 45,163$ 27,282$ 58,764$ 54,841$
Loss on early extinguishment of debt 45 - 18,905 92 -
Normalized FFO 34,774$ 45,163$ 46,187$ 58,856$ 54,841$
Normalized FFO per share (basic) 0.29$ 0.37$ 0.37$ 0.48$ 0.44$
Normalized FFO per share (diluted) 0.28$ 0.37$ 0.37$ 0.48$ 0.44$
122,003 122,709 123,215 123,206 123,393
122,329 122,855 123,350 123,294 123,412
Unaudited (in thousands, except per-share amounts)
3/31/2017 12/31/2016 9/30/2016 6/30/2016 3/31/2016
Net Cash Provided by Operating Activities 5,398$ 43,387$ 60,266$ 46,598$ 42,840$
(680) (968) (559) (238) 517
Net changes in operating assets and liabilities 24,886 (3,140) (17,781) 9,238 6,780
Maintenance capital (1) (2) (1,675) (82,311) (11,637) (14,575) (3,671)
AFFO 27,929$ (43,032)$ 30,289$ 41,023$ 46,466$
122,003 122,709 123,215 123,206 123,393
122,329 122,855 123,350 123,294 123,412
(2) Reflects 51% of the capital expenditures of the Market Square Joint Venture, in which CXP owns a 51% interest through an unconsolidated joint venture.
Supplemental Information - Q1 2017 27
Weighted-average common shares outstanding - diluted
(1) See page 31 of this supplemental report for a description of Maintenance Capital and page 25 for a detail of all capital expenditures.
Weighted-average common shares outstanding - diluted
Reconciliation of Cash Flows From Operations to Adjusted Funds From Operations (AFFO)
Three Months Ended
Weighted-average common shares outstanding - basic
Adjustments included in loss from unconsolidated
joint venture
Weighted-average common shares outstanding - basic
Columbia Property Trust, Inc.
Reconciliation of Net Income to Normalized Funds From Operations (NFFO)
Three Months Ended
Adjustments included in loss from unconsolidated
joint venture
Unaudited (in thousands)
3/31/2017 12/31/2016 9/30/2016 6/30/2016 3/31/2016
Net Income 74,722$ 27,400$ 36,898$ 13,286$ 6,697$
Interest expense (net) 14,565 15,158 17,116 17,372 17,892
Interest income from development authority bonds (1,800) (1,800) (1,800) (1,800) (1,800)
Income tax (benefit) expense (388) 58 65 245 77
Depreciation 21,605 24,026 26,778 28,450 29,289
Amortization 9,457 13,873 11,895 14,932 16,075
4,208 4,216 4,234 4,186 4,577
EBITDA 122,369$ 82,931$ 95,186$ 76,671$ 72,807$
(Gain) loss on sale of real estate assets (73,153) (22,242) (50,412) 19 310
Loss on early extinguishment of debt 45 - 18,905 92 -
Adjusted EBITDA 49,261$ 60,689$ 63,679$ 76,782$ 73,117$
General and administrative 8,768 8,158 7,467 7,761 10,490
Straight line rental income (6,154) (6,152) (4,823) (3,474) (5,535)
Net effect of below market amortization (587) (611) (682) (1,628) (1,323)
(878) (952) (746) (366) (369)
Net Operating Income (based on cash rents) 50,410$ 61,132$ 64,895$ 79,075$ 76,380$
(1,446) (1,144) (1,550) (1,868) (2,657)
Less Net Operating Income from:
Acquisitions - - - - -
Dispositions (2) (850) (13,170) (16,888) (17,330) (20,630)
48,114$ 46,818$ 46,457$ 59,877$ 53,093$
Supplemental Information - Q1 2017 28
(3) Reflects NOI from properties that were wholly-owned for the entirety of the periods presented.
(1) Reflects NOI from 51% of the Market Square Buildings for all periods presented. On October 28, 2015, we transferred the Market Square Buildings and the
$325.0 million mortgage note to a joint venture, and sold a 49% interest in the joint venture. Our interest in NOI from the Market Square Buildings is included in
loss from unconsolidated joint venture for all quarters presented.
(2) Reflects activity for the following properties sold since January 1, 2016, for all periods presented: Key Center Tower, Key Center Marriott, 5 Houston Center,
Energy Center, 515 Post Oak, SanTan Corporate Center, Sterling Commerce, 80 Park Plaza, 9127, 9189, 9191 & 9193 S. Jamaica Street, 800 North Frederick, 100
East Pratt.
Columbia Property Trust, Inc.
Reconciliation of Net Income to Net Operating Income (based on cash rents), and Same Store Net Operating
Income (based on cash rents) - wholly-owned properties
Three Months Ended
Same Store Net Operating Income (based on cash rents)
wholly-owned properties (3)
Same Store Net Operating Income (based on cash rents)
51% of Market Square Buildings (1)
Adjustments included in loss from unconsolidated
joint venture
Adjustments included in loss from unconsolidated
joint venture
Unaudited (in thousands)
3/31/2017 12/31/2016 9/30/2016 6/30/2016 3/31/2016
Net Income 74,722$ 27,400$ 36,898$ 13,286$ 6,697$
Interest expense (net) 14,565 15,158 17,116 17,372 17,892
Interest income from development authority bonds (1,800) (1,800) (1,800) (1,800) (1,800)
Income tax (benefit) expense (388) 58 65 245 77
Depreciation 21,605 24,026 26,778 28,450 29,289
Amortization 9,457 13,873 11,895 14,932 16,075
4,208 4,216 4,234 4,186 4,577
EBITDA 122,369$ 82,931$ 95,186$ 76,671$ 72,807$
(Gain) loss on sale of real estate assets (73,153) (22,242) (50,412) 19 310
Loss on early extinguishment of debt 45 - 18,905 92 -
Adjusted EBITDA 49,261$ 60,689$ 63,679$ 76,782$ 73,117$
General and administrative 8,768 8,158 7,467 7,761 10,490
21 8 5 5 62
Net Operating Income (based on GAAP rents) 58,050$ 68,855$ 71,151$ 84,548$ 83,669$
(2,344) (2,104) (2,301) (2,239) (3,088)
Less Net Operating Income from:
Acquisitions - - - - -
Dispositions (2) (855) (12,528) (20,069) (20,249) (24,354)
54,851$ 54,223$ 48,781$ 62,060$ 56,227$
Supplemental Information - Q1 2017 29
(3) Reflects NOI from properties that were wholly-owned for the entirety of the periods presented.
(1) Reflects NOI from 51% of the Market Square Buildings for all periods presented. On October 28, 2015, we transferred the Market Square Buildings and the
$325.0 million mortgage note to a joint venture, and sold a 49% interest in the joint venture. Our interest in NOI from the Market Square Buildings is included in
loss from unconsolidated joint venture for all quarters presented.
(2) Reflects activity for the following properties sold since January 1, 2016, for all periods presented: Key Center Tower, Key Center Marriott, 5 Houston Center,
Energy Center, 515 Post Oak, SanTan Corporate Center, Sterling Commerce, 80 Park Plaza, 9127, 9189, 9191 & 9193 S. Jamaica Street, 800 North Frederick, 100
East Pratt.
Columbia Property Trust, Inc.
Reconciliation of Net Income to Net Operating Income (based on GAAP rents), and Same Store Net Operating
Income (based on GAAP rents) - wholly-owned properties
Three Months Ended
Same Store Net Operating Income (based on GAAP rents)
wholly-owned properties (3)
Same Store Net Operating Income (based on GAAP rents)
51% of Market Square Buildings (1)
Adjustments included in loss from unconsolidated
joint venture
Adjustments included in loss from unconsolidated joint
venture
Unaudited (in thousands)
3/31/2017 12/31/2016 9/30/2016 6/30/2016 3/31/2016
Net Operating Income (based on GAAP rents) 58,050$ 68,855$ 71,151$ 84,548$ 83,669$
Straight-line rental income (7,057) (7,115) (5,525) (3,764) (5,872)
Net effect of below lease market amortization (583) (608) (731) (1,709) (1,417)
Net Operating Income (based on cash rents) 50,410$ 61,132$ 64,895$ 79,075$ 76,380$
Supplemental Information - Q1 2017 30
Columbia Property Trust, Inc.
Reconciliation of Net Operating Income (based on GAAP rents), and Net Operating Income (based on cash
rents)
Three Months Ended
Supplemental Information - Q1 2017 31
Annualized Lease Revenue (“ALR”): ALR is the sum of (i) annualized rental payments (defined as base rent plus operating expense reimbursements, excluding
rental abatements) for executed and commenced leases as well as leases executed but not yet commenced for vacant space, and (ii) annualized parking revenues,
payable either under the terms of an executed lease or vendor contract. ALR excludes rental payments for executed leases that have not yet commenced for
space covered by an existing lease.
Maintenance Capital: Capital expenditures incurred to maintain the building structure and functionality, and to lease space at our properties in their current
condition. Maintenance capital excludes capital for recent acquisitions and first generation leasing.
Investment Capital: Capital expenditures incurred to lease space to first generation tenants; to lease space that has been vacant for more than one year; to
expand or repurpose building functionality in our existing portfolio; and to bring properties up to our ownership standards. We establish our ownership standards
based on Class A office property characteristics typical for the respective local market, including level of finishes, systems, accessibility, and defined market
presence. All costs incurred within 36 months of acquisition are considered Investment Capital.
Funds From Operations (“FFO”): FFO, as defined by the National Association of Real Estate Investment Trusts (“NAREIT”), represents net income (computed in
accordance with GAAP), plus depreciation of real estate assets and amortization of lease-related costs, excluding gains (losses) on sales of real estate and
impairment losses on real estate assets. The Company computes FFO in accordance with NAREIT's definition, which may differ from the methodology for
calculating FFO, or similarly titled measures, used by other companies and this may not be comparable to those presentations. We consider FFO an appropriate
supplemental performance measure given its wide use by and relevance to investors and analysts. FFO, reflecting the assumption that real estate asset values rise
or fall with market conditions, principally adjusts for the effects of GAAP depreciation and amortization of real estate assets, which assume that the value of real
estate diminishes predictably over time.
Normalized FFO: We calculate Normalized FFO by starting with FFO, as defined by NAREIT, and adjusting for certain items that are not reflective of our core
operations, including: (i) real estate acquisition-related costs, (ii) listing costs, (iii) loss on interest rate swaps and (iv) loss on early extinguishment of debt. Such
items create significant earnings volatility. We believe Normalized FFO provides a meaningful measure of our operating performance and more predictability
regarding future earnings potential. Normalized FFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating
performance to net income; therefore, it should not be compared to other REITs' equivalent to Normalized FFO.
Net Operating Income (based on cash rents) (“NOI - cash rents”): NOI - cash rents is defined as Adjusted EBITDA adjusted for (i) portfolio general and
administrative expense, (ii) interest rate swap valuation adjustments, (iii) interest expense associated with interest rates swaps, (iv) non-cash property operations,
(v) straight-line rental income, and (vi) net effect of above/(below) market amortization. The company uses this measure to assess its operating results and
believes it is important in assessing operating performance. NOI - cash rents is a non-GAAP measure which does not have any standard meaning prescribed by
GAAP and therefore may not be comparable to similar measures presented by other companies.
Net Operating Income (based on GAAP rents) (“NOI - GAAP rents”): NOI - GAAP rents is defined as Adjusted EBITDA adjusted for (i) portfolio general and
administrative expense, (ii) interest rate swap valuation adjustments, and (iii) interest expense associated with interest rates swaps. The company uses this
measure to assess its operating results and believes it is important in assessing operating performance. NOI - GAAP rents is a non-GAAP measure which does not
have any standard meaning prescribed by GAAP and therefore may not be comparable to similar measures presented by other companies.
Same Store Net Operating Income (“Same Store NOI”): Same Store NOI is calculated as the NOI attributable to the properties continuously owned and operating
for the entirety of the reporting periods presented. We believe Same Store NOI is an important measure of comparison of our stabilized properties’ operating
performance. Other REITs may calculate Same Store NOI differently and our calculation should not be compared to that of other REITs.
Definitions - Other
EBITDA: EBITDA is defined as net income before interest, taxes, depreciation and amortization. We believe EBITDA is a reasonable measure of our liquidity.
EBITDA is a non-GAAP financial measure and should not be viewed as an alternative measurement of cash flows from operating activities or other GAAP basis
liquidity measures. Other REITs may calculate EBITDA differently and our calculation should not be compared to that of other REITs.
Columbia Property Trust, Inc.
Definitions - Non-GAAP Financial Measures
Included in this supplemental report are non-GAAP financial measures, which are accompanied by what we consider the most directly comparable financial
measures calculated and presented in accordance with GAAP. These measures include earnings (or components of earnings), as defined, from both continuing
operations and discontinued operations. A description of the non-GAAP financial measures we present and a statement of the reasons why management believes
the non-GAAP measures provide useful information to investors about the company's financial condition and results of operations can be found below.
Adjusted Funds From Operations (“AFFO”): AFFO is calculated by adjusting Cash Flow from Operations to exclude (i) changes in assets and liabilities resulting
from timing differences (ii) additional amortization of lease assets (liabilities), (iii) straight-line rental income, (iv) gain (loss) on interest rate swaps, (v) recurring
capital expenditures, and adding back (vi) stock based compensation expense and (vii) non-cash interest expense. Because AFFO adjusts for income and expenses
that we believe are not reflective of our core operations, we believe AFFO provides useful supplemental information. AFFO is a non-GAAP financial measure and
should not be viewed as an alternative measurement of our operating performance to net cash flows from operating activities or net income.
Adjusted EBITDA: Adjusted EBITDA is defined as net income before interest, taxes, depreciation and amortization and incrementally removing any impairment
losses, gains or losses from sales of property, real estate acquisition-related costs, discontinued operations adjustments, or other extraordinary items. We do not
include impairment losses in this measure because we feel these types of losses create volatility in our earnings and make it difficult to determine the earnings
generated by our ongoing business. We believe adjusted EBITDA is a reasonable measure of our liquidity. Adjusted EBITDA is a non-GAAP financial measure and
should not be viewed as an alternative measurement of cash flows from operating activities or other GAAP basis liquidity measures. Other REITs may calculate
adjusted EBITDA differently and our calculation should not be compared to that of other REITs.