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| 8-K - 8-K - COLUMBIA PROPERTY TRUST, INC. | cxp8-k201802presentation.htm |
1
2. 2018
INVESTOR
PRESENTATION
2
FORWARD-LOOKING STATEMENTS
Certain statements contained in this presentation other than historical facts may be considered forward-looking statements. Such statements include,
in particular, statements about our plans, strategies, and prospects, and are subject to certain risks and uncertainties, including known and unknown
risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a
guarantee of our performance in future periods. 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. These forward-looking
statements include information about possible or assumed future results of the business and our financial condition, liquidity, results of operations,
future plans and objectives. They also include, among other things, statement regarding subjects that are forward-looking by their nature, such as
our business and financial strategy, our 2018 guidance (including projected net operating income, cash rents and contractual growth), projected yield
and earnings growth compared to peers, our ability to obtain future financing, future acquisitions and dispositions of operating assets, future
repurchases of common stock, and market and industry trends. Readers are cautioned not to place undue reliance on these forward-looking
statements. We make no representations or warranties (express or implied) about the accuracy of any such forward-looking statements contained in
this presentation, and we do not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future
events, or otherwise.
Any such forward-looking statements are subject to risks, uncertainties, and other factors and are based on a number of assumptions involving
judgments with respect to, among other things, future economic, competitive, and market conditions, all of which are difficult or impossible to predict
accurately. To the extent that our assumptions differ from actual conditions, our ability to accurately anticipate results expressed in such forward-
looking statements, including our ability to generate positive cash flow from operations, make distributions to stockholders, and maintain the value of
our real estate properties, may be significantly hindered. See Item 1A in the Company's most recently filed Annual Report on Form 10-K for the year
ended December 31, 2017, for a discussion of some of the risks and uncertainties that could cause actual results to differ materially from those
presented in our forward-looking statements. The risk factors described in our Annual Report are not the only ones we face but do represent those
risks and uncertainties that we believe are material to us. Additional risks and uncertainties not currently known to us or that we currently deem
immaterial may also harm our business. For additional information, please reference the supplemental report furnished by the Company as Exhibit
99.1 to the Company’s Form 8-K furnished to the Securities and Exchange Commission on February 15, 2018.
The names, logos and related product and service names, design marks, and slogans are the trademarks or service marks of their respective
companies. When evaluating the Company’s performance and capital resources, management considers the financial impact of investments held
directly and through unconsolidated joint ventures. This presentation includes financial and operational information for our wholly-owned investments
and our proportional interest in unconsolidated investments. Unless otherwise noted, all data herein is as of December 31, 2017.
105-CORPPRES1710 Rev. 1.17.18
3
Shares trading 15-25% below estimated net asset value3
Highest dividend yield among gateway office peersVALUE
96% leased with only 5% expiring through end of 2019
Investment-grade rating (Baa2 Stable / BBB Stable) provides
broad access to capital
STABILITY
Desirable properties in amenity-rich CBD locations
~83% of portfolio in NY, SF, & DC1 GATEWAY PORTFOLIO
1Based on gross real estate assets as of 12.31.2017; represents 100% of properties owned through unconsolidated joint ventures.
2From runoff of large lease abatements and signed but not yet commenced leases.
3Based on consensus analyst estimates as of 2.24.2018.
2.1M SF of recent leasing, at 37% cash spreads, driving
additional ~$67M of contractual annual cash NOI2
$942M in acquisitions completed during 2017
GROWTH
OVERVIEW
4
DESIRABLE BUILDINGS IN PRIME GATEWAY LOCATIONS
333 Market St.
San Francisco
Pasadena Corporate
Park, Los Angeles
222 E. 41st St.
New York
650 California St.
San Francisco
University Circle
Palo Alto, CA
96% LEASED
114 Fifth Ave.
New York
229 W. 43rd St.
New York
95 Columbus
Jersey City, NJ
315 Park Ave. S.
New York
Cranberry Woods
Pittsburgh, PA
221 Main St.
San Francisco
One & Three Glenlake
Atlanta
Lindbergh Center
Atlanta
1800 M Street
Washington, D.C.
Market Square
Washington, D.C.
80 M Street
Washington, D.C.
149 Madison
New York
(Under Redevelopment)
218 W. 18th
New York
245-249 W. 17th
New York
116 Huntington Ave.
Boston
PORTFOLIO
5
KEY MARKETS OVERVIEW
As of 2.23.2018. Properties
owned in unconsolidated joint
ventures for all data presented
at 100%.
1149 Madison is under
redevelopment and is not
reflected in percent leased.
2.8M total SF
98% leased1
2.0M total SF
97% leased
1.6M total SF
88% leased
SA
N
FR
AN
CI
SC
O
W
AS
H
IN
G
TO
N
,
D
.C
.
PORTFOLIO
N
EW
Y
O
R
K
6
A DIFFERENTIATED APPROACH
PORTFOLIO
• Modernized buildings with
architectural distinction
• Strategic locations
• Efficient floorplates
• Attractive amenities
• High quality of service to
tenants
• Prudent capital investments
7
30-year, 390,000 SF lease
with NYU Langone for all
of 222 E. 41st
231,000 SF of leases signed in
2017 at 650 California, returning
the building to 93% leased despite
50,000 SF April move-out
216,000 SF of leases signed at 315
Park Avenue South during past two
years
80 M Street now 93% leased
(from 66%) after 150,000 SF total
leasing, including WeWork lease
One Glenlake Parkway now
99% leased (from 71%)
with 138,000 SF leasing,
including Cotiviti lease
Brought University Circle to 100%
leased with expansion of Amazon
Web Services; eliminated only
substantial near-term roll with
119,000 SF renewal of DLA Piper
RECENT LEASING ACHIEVEMENTS
2.1M 37%SF of leases signed on same-store portfolio
2016-2017
average cash leasing
spreads during that
period, excluding NYU
Total leasing statistics exclude Westinghouse extension at Cranberry Woods
10-12% 2018 same-store NOI guidance
GROWTH
8
OPPORTUNITIES THROUGH VACANCY &
NEAR-TERM LEASE ROLLOVER1
PROPERTY VACANCY 2018 ROLL TOTAL HIGHLIGHTS
MARKET SQUARE2
Washington, D.C. 67,000 3,000 70,000
• Renovated to maintain competitiveness
• Targeting government affairs offices with
spec suites, plus larger prospects
221 MAIN ST.
San Francisco 31,000 19,000 50,000
• Coveted South of Market address, with
recent upgrades and amenities that rival
new construction
• Significant roll-up opportunity on expiring
leases
116 HUNTINGTON
AVE.
Boston
43,000 0 43,000
• Renovated to reposition as
boutique office
• Renewal successes, plus strong interest
in availability
315 PARK AVE. S.
New York 38,000 0 38,000
• Significant lobby & storefront renovations
to position property as best-in-class in
submarket
• Roll-up opportunity on two remaining
vacant floors
149 MADISON AVE.
New York 127,000 0 127,000
• Recent acquisition; vacant building
• Full renovation underway, with initial
occupancy expected in 2019
1As of 2.23.2018.
2Reflects 51% of the SF for the Market Square buildings held through a joint venture.
GROWTH
9
RECENT ACQUISITIONS
Allocated
Price
$339M
Total SF 281,000
Top
Tenants
Twitter
Room & Board
Ownership 100%
Allocated
Price
$175M
Total SF 166,000
Top
Tenants
Red Bull, Company 3
SY Partners
Ownership 100%
Price $421M
Total SF 580,000
Top
Tenants
Berkeley Research
Zuckerman Spaeder
Ownership 55%
NEW YORKWASHINGTON, D.C.
GROWTH
Price $88M
Total SF 127,000
Top
Tenants
Under redevelopment
for multi- or single
tenant use
Ownership 100%
CBD / Golden Triangle
1800 M Street
Midtown South / Chelsea
245-249 W. 17th Street
Midtown South / Chelsea
218 W. 18th Street
Midtown South
149 Madison Avenue
10
205
261
280
$150M
$170M
$190M
$210M
$230M
$250M
$270M
$290M
Q4 17
Cash NOI
Annualized
Normalize Q4
Acquisition NOI
Remove
263 Shuman
Dispositions:
333 Market St.
University Circle
(remaining 22.5%)
Uncommenced
Leases &
Free Rent
Burnoff
Lease Rent
Escalations
Lease
Expirations
2018
Lease Up
Expired Space
Lease Up
Vacant Space
Pro Forma
Cash NOI
NOI BRIDGE– CASH RENTS
Q4 2017 to Stabilized Run Rate ($M)1
1Includes NOI from CXP’s proportional interest in unconsolidated joint ventures. Vacant space lease-up assumes properties below 95% are leased to 95% at
management’s estimates of market rate. Lease rollover assumes expiring SF released at management’s estimate of market rate.
LOCKED IN!
GROWTH
11
NET ASSET VALUE AND IMPLIED CAP RATE1
1Pro forma for the disposition of an additional 22.5% interest in University Circle & 333 Market Street and subsequent debt reduction
2Excludes NOI from assets acquired in Q4 2017.
3Debt as of 12.31.2017 pro forma for the pay down of debt with proceeds from the additional interest sold in University Circle and 333 Market Street.
4Implied Net Asset Value obtained by capping Q4 annualized cash NOI and layering on debt, working capital, and CapEx adjustments.
5Includes leases that have not yet commenced or are in abatement.
6Value derived from capping the anticipated cash NOI from leases that are signed but net yet paying cash rent.
7Based on management’s estimates of near-term rollover and lease-up of vacant space.
Net Operating
Income (Cash)
Cap Rate
5.5%
Cap Rate
5.0%
Q4 2017 Annualized2 $167,000 $3,036,000 $3,340,000
Q4 2017 Acquisitions at Cost 833,000 833,000
Pro Forma Debt3 (1,556,000) (1,556,000)
Working Capital (Net) @ 12.31.173 9,000 9,000
Planned Capital Expenditures (31,000) (31,000)
Net Asset Value – “Q4 Cash Paying”4 $2,291,000 $2,595,000
Net Asset Value – “Q4 Cash Paying” / Share $19.13 $21.66
Contractual – not yet Cash Paying5 $63,000 $1,145,000 $1,260,000
Planned Capital Expenditures (142,000) (142,000)
Incremental Value from Contractual Leases6 $1,003,000 $1,118,000
Incremental Value from Contractual Leases / Share6 $8.37 $9.34
Net Asset Value – “Q4” + “Contractual” / Share $27.50 $31.00
A
B
C
A+B
=
C
ADDITIONAL $1 - $2 OF IMPLIED VALUE
per share from anticipated near-term leasing7
VALUE
12
HIGHEST YIELD & PROJECTED EARNINGS GROWTH
AMONG GATEWAY REITS
As of 2.24.2018; analyst estimates sourced from Bloomberg and S&P Global Market Intelligence.
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
ESRT KRC BXP PGRE DEI HPP SLG VNO CXP
DIVIDEND YIELD vs. GATEWAY OFFICE PEERS
0%
10%
20%
30%
40%
50%
60%
VNO KRC HPP ESRT DEI BXP SLG PGRE CXP
PROJECTED 2018 AFFO/SHARE GROWTH (CONSENSUS ESTIMATES)
VALUE
13
LIMITED NEAR-TERM ROLLOVER
2% 3%
7%
17%
7% 8%
5%
15%
9%
27%
0%
5%
10%
15%
20%
25%
30%
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027+
1As of 12.31.2017.
LEASE EXPIRATIONS BY YEAR (% OF ALR)1
5% through
YE 2019
8 years
average remaining
lease term
STABILITY
14
REDEVELOPED PORTFOLIO
Modest capital needs moving forward
STABILITY
15
$23
$166
$37
$180
$300
$150
$350 $350
0
100
200
300
400
2018 2019 2020 2021 2022 2023 2024 2025 2026
STABLE & FLEXIBLE BALANCE SHEET1
INVESTMENT GRADE
BALANCE SHEET
12% / 88%
Secured Unsecured
33%
Net Debt to Real-Estate Assets
Baa2
Stable /
Ratings
BBB
Stable
D
EB
T
O
U
TS
TA
N
D
IN
G
($
M
) Mortgage Debt Bonds
Term Loans
Line of Credit
WELL-LADDERED MATURITES
2.39%
3.07%2
5.07%
4.15% 3.65%
2.70%
Market
Square3
One
Glenlake
1 As of 12.31.2017, pro forma for remaining Allianz obligation closed in February 2018 and the exit of 263 Shuman.
2 Includes effective rate on variable rate loan swapped to fixed.
3 Reflects 51% of the mortgage note secured by the Market Square Buildings, which Columbia owns through an unconsolidated joint venture.
$4.2 billion
of assets unencumbered by
debt (92% of total portfolio)
2.54%
STABILITY
16
FOR MORE INFORMATION
Columbia Property Trust
INVESTOR RELATIONS
404.465.2227
ir@columbia.reit
VALUE
STABILITY
GATEWAY PORTFOLIO
GROWTH
www.columbia.reit
024-CORPPRES1802
APPENDIX
17
DIVERSIFIED BASE OF HIGH QUALITY TENANTS
STRONG INDUSTRY DIVERSIFICATION1
Data as of 12.31.17.
1Reflects ALR at CXP’s pro rata share for properties owned through unconsolidated joint ventures.
2Credit rating may reflect the credit rating of the partner or a guarantor. Only the Standard & Poor’s credit rating has been provided.
3Rating represents Yahoo!; in discussions with Verizon (A-) regarding parent guarantee following recent merger.
TOP 10 TENANTS1,2
23%
11%
7%
7%6%
6%
6%
5%
3%
3%
23%
Business Services
Depository Institutions
Engineering and Management Services
Communication
Legal Services
Nondepository Institutions
Health Services
Electric, Gas and Sanitary Services
Security and Commodity Brokers
Real Estate
Other
Tenant
Credit
Rating
% of ALR
AT&T Corporation/AT&T Services BBB+ 5.9%
Wells Fargo Bank, N.A. AA- 5.4%
Pershing LLC A 4.8%
Twitter BB- 4.1%
NYU AA- 4.0%
Westinghouse Electric Company Not Rated 3.8%
Verizon / Yahoo!3 BB+ 3.8%
Newell Brands, Inc. BBB- 2.4%
Snap Inc. Not Rated 2.4%
DocuSign, Inc. Not Rated 2.4%
APPENDIX
18
DRAMATIC CASH LEASING SPREADS1
32%
19%
45%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
2015 2016 2017
1Cash leasing spreads on same-store properties excluding 30-year NYU lease at 222 E. 41st Street and Westinghouse extension at Cranberry Woods.
APPENDIX
LEASE ROLLOVER TO ACHIEVE HIGHER RENTS
19
FUTURE GROWTH THROUGH REDEVELOPMENT
14’+ slab-to-slab ceiling heights and oversized windows throughout
Highly-desirable boutique-sized floorplates (10,400 SF)
Potential for rooftop deck with city skyline views
Under redevelopment with initial occupancy expected 2019
149 MADISON AVENUE
Midtown South, New York
Total SF 127,000
Year Built 1916
Location NoMAD district of Midtown South
# Stories 12
Full-scale renovation underway, including updating/upgrading
infrastructure, interior and exterior finishes, and common areas for a
modern boutique office feel
APPENDIX
20
JOINT VENTURE
with Allianz Real Estate
HIGHLIGHTS
Ability to increase scale in top markets on a leverage-
neutral basis
Attractive cost of capital
Current gross asset value of $1.7B
Potential to acquire additional assets in select gateway
markets
Allianz increased to 45% interest in University Circle
and 333 Market Street in February 2018
Joint Venture Ownership Interest
Property
CXP Allianz
49.5%* 49.5%* 114 Fifth Avenue, New York
55% 45% University Circle, San Francisco
55% 45% 333 Market Street, San Francisco
55% 45% 1800 M Street, Washington D.C.
*L&L Holding Co. LLC holds a 1% ownership interest in 114 Fifth Avenue.
APPENDIX
21
EMBEDDED GROWTH FROM SIGNED LEASES1
TENANT PROPERTY MARKET
SF
(000s)
CURRENTLY IN
ABATEMENT
NOT YET
COMMENCED
NYU Langone Medical Center 222 East 41st Street NY 390 ✔
WeWork 80 M Street DC 69 ✔
WeWork 650 California Street SF 61 ✔
Bustle 315 Park Avenue South NY 51 ✔
Snap 229 West 43rd Street 48 ✔
Other abated leases 141 ✔
Affirm 650 California Street SF 81 ✔
Cotiviti One Glenlake ATL 66 ✔
DLA Piper (renewal) University Circle SF 65 ✔
Gemini Trust Company 315 Park Avenue South NY 51 ✔
PitchBook Data 315 Park Avenue South NY 34 ✔
Other leases not yet commenced 61 ✔
Total Embedded NOI – Cash Rents2 $41M $26M
1SF and NOI for joint ventures are reflected at CXP’s ownership interest. Pro forma for sale of additional 22.5% interest in University Circle.
2Non-GAAP financial measure. See Appendix.
APPENDIX
22
81
84
89
95
96
$70M
$75M
$80M
$85M
$90M
$95M
$100M
$105M
Q4 17
Normalized
Q1 18 Q2 18 Q3 18 Q4 18
EMBEDDED CONTRACTUAL GROWTH WITH LIMITED
NEAR-TERM ROLLOVER
Tenant Revenue – Quarterly Cash Rents1,2
1 Tenant revenue = Base rent + Expense reimbursements. Includes revenue from CXP’s proportional interest in unconsolidated joint ventures.
2 Non-GAAP financial measure. See Appendix
3 Q4 17 Normalized = Q4 Actual (Cash) - University Circle (additional 22.5%) – 333 Market Street (additional 22.5%).
4 Timing of speculative leasing uncertain; low end of range assumes 25% renewal probability at market rate (based on management’s estimates) on leases expiring between
1/1/18 - 12/31/18 and lease up of properties below 90% to 90%. High end of range assumes 75% renewal probability at market on leases expiring between 1/1/18 - 12/31/18
and lease up of properties below 95% to 95%.
$4-7M of additional growth potential from signed
leases commencing in 2019, speculative leasing
of vacant space and lease rollover4First full quarter of NYU rent; Affirm free
rent ends at 650 California; WeWork free
rent ends at 80 M
NYU free rent ends (222 E 41st); WeWork
free rent ends at 650 California
Free rent ends for multiple
tenants at 650 California & 315
Park Avenue
3
23
253
264
283
$180M
$200M
$220M
$240M
$260M
$280M
$300M
Q4 17
GAAP NOI
Annualized
Normalize Q4
Acquisition NOI
Remove
263 Shuman
Dispositions:
333 Market St.
University Circle
(remaining 22.5%)
Uncommenced
Leases
Lease
Expirations
2018
Lease Up
Expired Space
Lease Up
Vacant Space
Pro Forma
GAAP NOI
NOI BRIDGE– GAAP RENTS
Q4 2017 to Stabilized Run Rate ($M)1
1Includes NOI from CXP’s proportional interest in unconsolidated joint ventures. Vacant space lease-up assumes properties below 95% are leased to 95% at management’s
estimates of market rate. Lease rollover assumes expiring SF released at management’s estimate of market rate.
LOCKED IN!
APPENDIX
24
93
94
96
98
96
$70M
$75M
$80M
$85M
$90M
$95M
$100M
$105M
Q4 17
Normalized
Q1 18 Q2 18 Q3 18 Q4 18
EMBEDDED CONTRACTUAL GROWTH WITH LIMITED
NEAR-TERM ROLLOVER
Tenant Revenue – Quarterly GAAP Rents1
1 Tenant revenue = Base rent + Expense reimbursements. Includes revenue from CXP’s proportional interest in unconsolidated joint ventures.
2 Q4 17 Normalized = Q4 Actual (GAAP) - University Circle (additional 22.5%) – 333 Market Street (additional 22.5%).
3 Timing of speculative leasing uncertain; low end of range assumes 25% renewal probability at market rate (based on management’s estimates) on leases expiring between
1/1/18 - 12/31/18 and lease up of properties below 90% to 90%. High end of range assumes 75% renewal probability at market on leases expiring between 1/1/18 - 12/31/18
and lease up of properties below 95% to 95%.
$3-6M of additional growth potential from signed
leases commencing in 2019, speculative leasing of
vacant space and lease rollover3
2
APPENDIX
25
LEASING CASE STUDIES
650 CALIFORNIA
San Francisco
222 E. 41ST STREET
New York
Primary tenant Jones Day informed us of
plans to vacate upon lease expiration in Oct.
2016 (353,000 SF)
In 2015, began exploring multi-tenant
strategies as well as potential full-building
users
Signed 30-year, 390,000 SF lease with NYU
221,000 SF of rollover from 2016 - April
2017; low retention rate by design to bring
building up to market rate
Upgraded lobby and amenities and
embarked on selective spec suite program
Building now 93% leased with 231,000 SF
leased in 2017
APPENDIX
26
LEASING CASE STUDIES
Rebranded property to attract more creative
tenant base and compete with new
construction in submarket
Building now 93% leased after signing
150,000 SF of leases
ONE GLENLAKE | Atlanta
150,000 SF Oracle downsize created 29%
vacancy
Upgraded common areas and amenities to
best-in-submarket
138,000 SF leasing since Nov. 2016 to bring
building to 99% leased
APPENDIX
80 M STREET | Washington, D.C.
27
LEASING CASE STUDIES
229 W. 43RD STREET
New York
Expanded and extended Snap on
154,000 SF
Brings building to 100% leased with all
near-term roll pre-leased, with positive
leasing spreads
Capitalized on two large vacates by rebranding
formerly law-firm-centric property to attract more
diverse tenant base in 2012
Subsequently signed and expanded Amazon
Web Services and other tech tenants, reaching
100% occupancy while raising in-place gross
rates over 30% (from $68 to $90 PSF)
Eliminated only substantial near-term roll with
119,000 SF renewal of DLA Piper (mid-2018
expiration) at over 60% cash spread
UNIVERSITY CIRCLE
San Francisco
APPENDIX
28
EXPERIENCED LEADERSHIP
EXECUTIVE AND CORPORATE OPERATIONS
NATIONAL REAL ESTATE MANAGEMENT
SAN
FRANCISCO
KELLY LIM
VP, Asset Management
MARK WITSCHORIK
VP, Asset Management
DAVID DOWDNEY
SVP, Head of Leasing
MICHAEL SCHMIDT
VP, Asset Management
NELSON MILLS
President and CEO
JIM FLEMING
Executive VP and CFO
WENDY GILL
SVP, Corporate
Operations and Chief
Accounting Officer
DOUG MCDONALD
VP, Finance
KEVIN HOOVER
SVP, Portfolio
Management and
Transactions
AMY TABB
SVP, Business
Development
LINDA BOLAN
SVP, Property
Management and
Sustainability
APPENDIX
NEW
YORK
WASHINGTON,
D.C.
29
RECONCILIATIONS: NON-GAAP TO COMPARABLE
GAAP MEASURES
Three Months
(in thousands) Ended 12/31/17 Annualized
Net Cash Provided by Operating Activities $ 14,809 $ 59,236
Straight line rental income 11,773 47,092
Depreciation of real estate assets (19,865) (79,460)
Amortization of lease-related costs (7,792) (31,168)
Gain from unconsolidated joint venture 3,500 14,000
Income distributed from JV (3,681) (14,724)
Other non-cash expenses (2,841) (11,364)
Net changes in operating assets & liabilities 2,749 10,996
Net Income $ (1,348) $ (5,392)
Interest expense (net) 16,147 64,588
Interest income from development authority bonds (1,800) (7,200)
Income tax benefit 165 660
Depreciation of real estate assets 19,865 79,460
Amortization of lease-related costs 7,885 31,540
Adjustments from unconsolidated joint venture 11,999 47,996
EBITDA $ 52,913 $ 211,652
Asset & property management fee income (1,656) (6,624)
General and administrative – corporate 9,963 39,852
General and administrative – unconsolidated joint ventures 741 2,964
Straight line rental income (11,578) (46,312)
Net effect of below market amortization (93) (372)
Adjustments from unconsolidated joint venture 885 3,540
Net Operating Income (based on cash rents) $ 51,175 $ 204,700
APPENDIX
30
RECONCILIATIONS: NON-GAAP TO COMPARABLE
GAAP MEASURES
(continued from prior page)
(in thousands) Three Months
Ended 12/31/17 Annualized
Net Operating Income (based on cash rents) $ 51,175 $ 204,700
Normalize Q4 Acquisition NOI; Remove 263 Shuman 1,600 6,400
Dispositions – 333 Market St. & University Circle, remaining 22.5% (Allianz JV) (3,000) (12,000)
Uncommenced Leases & Free Rent Burnoff 16,650 66,600
Lease Rent Escalations 1,000 4,000
Lease Expirations 2018 (2,125) (8,500)
Lease Up Expired Space 2,200 8,800
Lease Up Vacant Space 2,450 9,800
Net Operating Income (based on cash rents) – “Pro Forma” $ 69,950 $ 279,800
APPENDIX
31
RECONCILIATIONS: NON-GAAP TO COMPARABLE
GAAP MEASURES
Three Months
(in thousands) Ended 12/31/17 Annualized
Net Income $ (1,348) $ (5,392)
Interest expense (net) 16,147 64,588
Interest income from development authority bonds (1,800) (7,200)
Income tax benefit 165 660
Depreciation of real estate assets 19,865 79,460
Amortization of lease-related costs 7,885 31,540
Adjustments from unconsolidated joint venture 11,999 47,996
EBITDA $ 52,913 $ 211,652
Asset & property management fee income (1,656) (6,624)
General and administrative – corporate 9,963 39,852
General and administrative – unconsolidated joint ventures 741 2,964
Adjustments from unconsolidated joint venture 1,209 4,836
Net Operating Income (based on GAAP rents) $ 63,170 $ 252,680
APPENDIX
32
RECONCILIATIONS: NON-GAAP TO COMPARABLE
GAAP MEASURES
(continued from prior page)
(in thousands) Three Months
Ended 12/31/17 Annualized
Net Operating Income (based on GAAP rents) $ 63,170 $ 252,680
Normalize Q4 Acquisition NOI; Remove 263 Shuman 1,925 7,700
Dispositions – 333 Market St. & University Circle, remaining 22.5% (Allianz JV) (3,075) (12,300)
Uncommenced Leases 5,975 23,900
Lease Expirations 2018 (2,075) (8,300)
Lease Up Expired Space 2,275 9,100
Lease Up Vacant Space 2,550 10,200
Net Operating Income (based on GAAP rents) – “Pro Forma” $ 70,745 $ 282,980
APPENDIX
33
RECONCILIATIONS: NON-GAAP TO COMPARABLE
GAAP MEASURES
(in thousands) Three Months
Ended 12/31/17
Total Revenues – GAAP $ 71,625
Total Revenues – CXP’s Interest in Unconsolidated Joint Ventures 27,833
Total Revenues $ 99,458
Dispositions - University Circle & 333 Market Street (additional 22.5%) (3,735)
Asset & Property Management Fee Income, Other Property Income (2,973)
Total Revenues – Q4 17 Normalized (GAAP) $ 92,750
Total Revenues – GAAP $ 71,625
Total Revenues – CXP’s Interest in Unconsolidated Joint Ventures 27,833
Total Revenues $ 99,458
Dispositions - University Circle & 333 Market Street (additional 22.5%) (3,735)
Asset & Property Management Fee Income, Other Property Income (2,973)
Straight-line Rent & Above/Below Lease Market Amortization (11,916)
Total Revenues – Q4 17 Normalized (Cash) $ 80,834
APPENDIX