MPG Office Trust, Inc. - FORM 8-K - EX-99.2 - EXHIBIT 99.2

Attached files

file	filename
8-K - FORM 8-K - MPG Office Trust, Inc.	mpg20113318k.htm
EX-99.1 - EXHIBIT 99.1 - MPG Office Trust, Inc.	mpg2011331ex991.htm

Table of Contents

Exhibit 99.2

Supplemental Operating and Financial Data

For the Quarter Ended

March 31, 2011

MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011





Table of Contents



		PAGE
Corporate Data		1
	Forward-Looking Statements	2
	Quarterly Highlights	3
	Investor Information	5
	Common Stock Data	6
Consolidated Financial Results		7
	Financial Highlights	8
	Consolidated Balance Sheets	10
	MMO Unconsolidated Joint Venture Condensed Balance Sheets	11
	Consolidated Statements of Operations	12
	Consolidated Statements of Discontinued Operations	13
	Consolidated Statements of Operations Related to Properties in Default	14
	MMO Unconsolidated Joint Venture Statements of Operations	15
	Funds from Operations	16
	Adjusted Funds from Operations	17
	Adjusted Funds from Operations Related to Properties in Default	18
	Reconciliation of Earnings before Interest, Taxes and Depreciation and Amortization and Adjusted Funds From Operations	19
	Capital Structure	20
	Debt Summary	21
	MMO Joint Venture Debt Summary	23
	Debt Maturities	24
	MMO Joint Venture Debt Maturities	25
Portfolio Data		26
	Same Store Analysis	27
	Portfolio Overview	28
	Portfolio Geographic Distribution (Excluding Properties in Default)	31
	Portfolio Overview — Leased Percentages and Weighted Average Remaining Lease Term	32
	Major Tenants — Office Properties (Excluding Properties in Default)	33
	Portfolio Tenant Classification Description (Excluding Properties in Default)	34
	Lease Expirations — Wholly Owned Portfolio	35
	Lease Expirations — Wholly Owned Portfolio (Los Angeles County)	36
	Lease Expirations — Wholly Owned Portfolio (Orange County)	37
	Lease Expirations — Properties in Default	38
	Lease Expirations — MMO Joint Venture Portfolio	39
	Leasing Activity — Total Portfolio	40
	Leasing Activity — Los Angeles Central Business District	41
	Leasing Activity — Orange County	42
	Tenant Improvements and Leasing Commissions (Excluding Properties in Default)	43
	Historical Capital Expenditures — Office Properties	44
	Hotel Performance and Hotel Historical Capital Expenditures	45
	Development Properties	46
	Management Statements on Non-GAAP Supplemental Measures	48

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MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011



Corporate Data

Table of Contents

MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011





Forward-Looking Statements

This supplemental package contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. We caution investors that any forward-looking statements presented herein are based on management’s beliefs and assumptions and information currently available to management. Such statements are subject to risks, uncertainties and assumptions and may be affected by known and unknown risks, trends, uncertainties and factors that are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. These factors include, without limitation: risks associated with our ability to dispose of properties, if and when we decide to do so, at prices or terms set by or acceptable to us; risks associated with the timing and consequences of loan defaults and related asset dispositions; risks associated with our loan modification efforts; risks associated with our liquidity situation; risks associated with our dependence on key personnel whose continued service is not guaranteed; risks associated with the continued or increased negative impact of the current credit crisis and global economic slowdown; risks associated with contingent guaranties by our Operating Partnership; general risks affecting the real estate industry (including, without limitation, the inability to enter into or renew leases at favorable rates, dependence on tenants’ financial condition, and competition from other developers, owners and operators of real estate); risks associated with the availability and terms of financing; risks associated with increases in interest rates, volatility in the securities markets and contraction in the credit markets affecting our ability to extend or refinance existing loans as they come due; risks associated with management’s focus on asset dispositions, loan defaults, cash generation and general strategic matters; risks associated with joint ventures; potential liability for uninsured losses and environmental contamination; and risks associated with our 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.

For a further list and description of such risks and uncertainties, see our Annual Report on Form 10-K filed on March 16, 2011 with the Securities and Exchange Commission. We do not update forward-looking statements and disclaim any intention or obligation to update or revise them, whether as a result of new information, future events or otherwise.

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MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011





Quarterly Highlights

MPG Office Trust, Inc. (the “Company”), a self-administered and self-managed real estate investment trust, is the largest owner and operator of Class A office properties in the Los Angeles central business district and is primarily focused on owning and operating high-quality office properties in the Southern California market. We are a full-service real estate company with substantial in-house expertise and resources in property management, marketing, leasing and financing.

As of March 31, 2011, our office portfolio (including Properties in Default) was comprised of whole or partial interests in 24 properties totaling approximately 15 million net rentable square feet, one 350-room hotel with 266,000 square feet, and on- and off-site structured parking plus surface parking totaling approximately 9 million square feet, which accommodates approximately 27,000 vehicles.

As used in this Supplemental Operating and Financial Data package, the term “Properties in Default” refers to our Stadium Towers Plaza, 2600 Michelson, 550 South Hope, 500 Orange Tower and City Tower properties, whose mortgage loans were in default as of March 31, 2011. We disposed of Park Place II (in third quarter 2010), and 207 Goode and Pacific Arts Plaza (both in fourth quarter 2010), which were previously classified as part of Properties in Default. The results of operations of Park Place II, 207 Goode and Pacific Arts Plaza are now included in discontinued operations for all periods presented.

In addition to the mortgage loans secured by the Properties in Default, the mortgage loan secured by Two California Plaza is also in default as of March 31, 2011. We have excluded Two California Plaza from the Properties in Default because our goal is to modify the loan with the special servicer rather than to dispose of the asset. We cannot assure you that we will be successful in modifying the loan, which may ultimately result in our inability to retain ownership of Two California Plaza.

This Supplemental Operating and Financial Data package should be read in conjunction with our consolidated financial statements for the year ended December 31, 2010 in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 16, 2011. For more information on MPG Office Trust, visit our website at www.mpgoffice.com.

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MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011





Quarterly Highlights (continued)



Asset Disposition: On January 27, 2011, we disposed of the 500 Orange Center development site located in Orange, California. We received proceeds from this transaction of $4.7 million, net of transaction costs. Debt: Following notices from us, the mortgage loans encumbering 700 North Central and 801 North Brand were transferred to special servicing in March 2011. The mortgage loans secured by these assets are not in default. Following notices from us, the mortgage loans encumbering U.S. Bank Tower and Wells Fargo Tower were transferred to special servicing in March 2011. This step permits us to engage in discussions with the respective special servicers. We also delivered a notice of imminent default in March 2011 to the master servicer for the mortgage loan on Gas Company Tower requesting it be placed into special servicing (which has not yet occurred). The mortgage loans secured by these assets are not in default. Following a notice from us, the mortgage loan encumbering Two California Plaza was transferred to special servicing. Subsequently in March 2011, our special purpose property-owning subsidiary that owns Two California Plaza defaulted on the mortgage loan.		Subsequent Events: On April 1, 2011, we completed the disposition of 701 North Brand located in Glendale, California to the property’s lender. As a result of the disposition, we were relieved of the obligation to repay the $33.8 million mortgage loan secured by the property and received cash consideration. On April 26, 2011, we disposed of 550 South Hope located in Los Angeles, California in cooperation with the special servicer on the mortgage loan. As a result of the disposition, we were relieved of the obligation to repay the $200.0 million mortgage loan secured by the property as well as contractual and default interest. On May 1, 2011, we extended our $109.0 million mortgage loan secured by Brea Corporate Place and Brea Financial Commons. The final maturity date of this loan is May 1, 2012, and there are no remaining extension options. No cash paydown was made to extend the loan, and the loan terms remain unchanged. On May 1, 2011, we repaid our $15.0 million unsecured term loan upon maturity using cash on hand.

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MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011





Investor Information

355 South Grand Avenue, Suite 3300

Los Angeles, CA 90071

Tel. (213) 626-3300

Fax (213) 687-4758



Senior Management

David L. Weinstein	President and Chief Executive Officer	Jonathan L. Abrams	Senior Vice President, General Counsel and Secretary
Shant Koumriqian	Executive Vice President, Chief Financial Officer	Peter K. Johnston	Senior Vice President, Leasing
Peggy M. Moretti	Executive Vice President, Investor and Public Relations	Christopher M. Norton	Senior Vice President, Transactions
	& Chief Administrative Officer

Corporate

Investor Relations Contact: Peggy M. Moretti at (213) 613-4558
Please visit our corporate website at: www.mpgoffice.com



Transfer Agent	Timing
American Stock Transfer & Trust Company 59 Maiden Lane New York, NY 10038 (866) 668-6550 www.amstock.com	Quarterly results for 2011 will be announced according to the following schedule:
	Second Quarter	August 2011
	Third Quarter	October 2011
	Fourth Quarter	February 2012



Equity Research Coverage

	Credit Suisse	Andrew Rosivach	(415) 249-7942
	Deutsche Bank Securities, Inc.	Vincent Chao	(212) 250-6799
	Goldman Sachs & Co.	Jay Haberman	(917) 343-4260
	Green Street Advisors	Michael Knott	(949) 640-8780
	KeyBanc Capital Markets	Jordan Sadler	(917) 368-2280
	Raymond James Associates	Paul Puryear	(727) 567-2253
	RBC Capital Markets	Dave Rodgers	(440) 715-2647
	Robert W. Baird & Company	David Aubuchon	(314) 863-4235
	Stifel, Nicolaus & Co., Inc.	John Guinee	(443) 224-1307

MPG Office Trust, Inc. is currently followed by the sell-side analysts listed above, with the exception of Green Street Advisors, which is an independent research firm. This list may not be complete and is subject to change as firms add or delete coverage of our company. Please note that any opinions, estimates or forecasts regarding our historical or predicted performance made by these analysts are theirs alone and do not represent opinions, forecasts or predictions of MPG Office Trust, Inc. or its management. We are providing this listing as a service to our stockholders and do not by listing these firms imply our endorsement of or concurrence with such information, conclusions or recommendations. Interested persons may obtain copies of analysts' reports on their own; we do not distribute these reports. Various of these firms may from time-to-time own our stock and/or hold other long or short positions in our stock, and may provide compensated services to us.

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MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011





Common Stock Data

Our common stock is traded on the New York Stock Exchange under the symbol MPG. Selected information about our common stock for the past five quarters (based on NYSE prices) is as follows:



	2011			2010
	1st Quarter			4th Quarter			3rd Quarter			2nd Quarter			1st Quarter
High price	$	4.28		$	3.08		$	3.47		$	4.60		$	3.98
Low price	$	2.76		$	1.98		$	2.25		$	2.38		$	1.41
Closing price	$	3.71		$	2.75		$	2.50		$	2.93		$	3.08
Dividends per share – annualized	(1		)	(1		)	(1		)	(1		)	(1		)
Closing dividend yield – annualized	(1		)	(1		)	(1		)	(1		)	(1		)
Closing common shares and Operating Partnership units outstanding (in thousands)	55,491			55,372			54,735			54,686			54,692
Closing market value of common shares and Operating Partnership units outstanding (in thousands)	$	205,872		$	152,274		$	136,837		$	160,229		$	168,451

Dividend Information:

Common Stock
Dividend amount per share	(1		)	(1		)	(1		)	(1		)	(1		)

Series A Preferred Stock
Dividend amount per share	(2		)	(2		)	(2		)	(2		)	(2		)

__________


(1)	The Board of Directors did not declare a dividend on our common stock for the quarters ended March 31, 2011 and December 31, September 30, June 30 and March 31, 2010. There can be no assurance that we will make distributions on our common stock at historical levels or at all.

(2)

The Board of Directors did not declare a dividend on our Series A Preferred Stock during the three months ended April 30 and January 31, 2011 and October 31, July 31 and April 30, 2010. Dividends on our Series A Preferred Stock are cumulative, and therefore, will continue to accrue at an annual rate of $1.9064 per share. As of April 30, 2011, we have missed ten quarterly dividend payments totaling $47.7 million.

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MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011



Consolidated Financial Results

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MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011



Financial Highlights (unaudited and in thousands, except share, per share, percentage and ratio amounts)



	For the Three Months Ended
	March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010			March 31, 2010
Income Items:
Revenue (1)	$	95,854		$	101,328		$	101,913		$	100,521		$	103,134
Straight line rent	460			1,092			(43		)	778			551
Fair value lease revenue (2)	3,446			3,920			5,942			3,773			4,046
Lease termination fees	27			—			2,398			—			18
Office property operating margin (3)	63.1		%	61.6		%	62.9		%	64.5		%	65.6		%
Net (loss) income available to common stockholders	$	(39,548	)	$	(138,275	)	$	(17,860	)	$	(53,521	)	$	18,580
Net (loss) income available to common stockholders – basic	(0.81		)	(2.82		)	(0.36		)	(1.10		)	0.38
Funds from operations (FFO) available to common stockholders (4)	$	(13,490	)	$	(103,726	)	$	(2,440	)	$	(25,215	)	$	35,552
FFO per share – basic (4)	(0.28		)	(2.12		)	(0.05		)	(0.52		)	0.73
FFO per share – diluted (4)	(0.28		)	(2.12		)	(0.05		)	(0.52		)	0.72
FFO per share before specified items – basic (4)	(0.06		)	0.02			—			(0.01		)	0.05
FFO per share before specified items – diluted (4)	(0.06		)	0.02			—			(0.01		)	0.05

Ratios:
Interest coverage ratio (5)	1.04			(0.78		)	1.52			0.78			2.20
Interest coverage ratio before specified items (6)	1.04			1.14			1.13			1.08			1.13
Fixed-charge coverage ratio (7)	0.93			(0.71		)	1.38			0.71			2.00
Fixed-charge coverage ratio before specified items (8)	0.93			1.03			1.03			0.98			1.02

Capitalization:
Common stock price @ quarter end	$	3.71		$	2.75		$	2.50		$	2.93		$	3.08
Total consolidated debt	$	3,578,627		$	3,576,493		$	3,894,266		$	3,992,724		$	4,035,451
Preferred stock liquidation preference	250,000			250,000			250,000			250,000			250,000
Common equity value @ quarter end (9)	205,872			152,274			136,837			160,229			168,451
Total consolidated market capitalization	$	4,034,499		$	3,978,767		$	4,281,103		$	4,402,953		$	4,453,902
Company share of MMO joint venture debt	138,842			138,993			160,355			160,510			160,663
Total combined market capitalization	$	4,173,341		$	4,117,760		$	4,441,458		$	4,563,463		$	4,614,565
Total consolidated debt / total consolidated market capitalization	88.7		%	89.9		%	91.0		%	90.7		%	90.6		%
Total combined debt / total combined market capitalization	89.1		%	90.2		%	91.3		%	91.0		%	90.9		%
Total consolidated debt plus liquidation preference / total consolidated market capitalization	94.9		%	96.2		%	96.8		%	96.4		%	96.2		%
Total combined debt plus liquidation preference / total combined market capitalization	95.1		%	96.3		%	96.9		%	96.5		%	96.3		%

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MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011





Financial Highlights (continued)

__________


(1)	Excludes revenue from discontinued operations of approximately $4.5 million, $10.5 million, $8.8 million and $13.3 million for the three months ended December 31, September 30, June 30 and March 31, 2010, respectively.


(2)	Represents the net adjustment for above- and below-market leases, which are being amortized over the remaining term of the respective leases from the date of acquisition.


(3)	Calculated as follows: (rental, tenant reimbursement and parking revenues - rental property operating and maintenance, real estate taxes and parking expenses) / (rental, tenant reimbursement and parking revenues). Lease termination fees are reported as part of interest and other revenue in the consolidated statements of operations.


(4)	For a definition and discussion of FFO, see page 48. For a quantitative reconciliation of the differences between FFO and net (loss) income, see page 16.

(5)

Calculated as earnings before interest, taxes and depreciation and amortization and preferred dividends, or EBITDA, of $54,035, $(44,217), $87,299, $46,041 and $134,085, respectively, divided by cash paid for interest of $52,117, $56,353, $57,369, $58,900 and $60,894, respectively. Cash paid for interest excludes default interest accrued totaling $10.1 million, $10.5 million, $9.9 million, $10.5 million and $10.4 million related to mortgages in default for the three months ended March 31, 2011 and December 31, September 30, June 30 and March 31, 2010, respectively. For a discussion of EBITDA, see page 50. For a quantitative reconciliation of the differences between EBITDA and net (loss) income, see page 19.


(6)	Calculated as Adjusted EBITDA of $54,035, $64,118, $64,953, $63,594 and $68,752, respectively, divided by cash paid for interest of $52,117, $56,353, $57,369, $58,900 and $60,894, respectively. For a discussion of Adjusted EBITDA, see page 50.


(7)	Calculated as EBITDA of $54,035, $(44,217), $87,299, $46,041 and $134,085, respectively, divided by fixed charges of $58,050, $62,461, $63,146, $65,042 and $67,128, respectively.


(8)	Calculated as Adjusted EBITDA of $54,035, $64,118, $64,953, $63,594 and $68,752, respectively, divided by fixed charges of $58,050, $62,461, $63,146, $65,042 and $67,128, respectively.

(9)

Assumes 100% conversion of the limited partnership units in our Operating Partnership into shares of our common stock. Our limited partners have the right to redeem all or part of their Operating Partnership units at any time. At the time of redemption, we have the right to determine whether to redeem the Operating Partnership units for cash, based upon the fair market value of an equivalent number of shares of our common stock at the time of redemption, or exchange them for shares of our common stock on a one-for-one basis, subject to adjustment in the event of stock splits, stock dividends, issuance of stock rights, specified extraordinary distribution and similar events.

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MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011



Consolidated Balance Sheets (unaudited and in thousands)



	March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010			March 31, 2010
Assets
Investments in real estate	$	3,060,737		$	3,063,186		$	3,532,695		$	3,630,535		$	3,668,916
Less: accumulated depreciation	(690,953		)	(668,328		)	(685,244		)	(680,262		)	(655,892		)
Investments in real estate, net	2,369,784			2,394,858			2,847,451			2,950,273			3,013,024

Cash, cash equivalents and restricted cash	171,260			189,659			214,073			216,808			229,279
Rents, deferred rents and other receivables, net	67,009			68,237			75,972			77,320			76,510
Deferred charges, net	99,608			105,283			113,315			116,938			122,514
Other assets	17,304			12,975			16,591			16,544			23,892
Assets associated with real estate held for sale	—			—			—			—			52,099
Total assets	$	2,724,965		$	2,771,012		$	3,267,402		$	3,377,883		$	3,517,318

Liabilities and Deficit
Liabilities:
Mortgage and other loans	$	3,578,627		$	3,576,493		$	3,894,266		$	3,992,724		$	4,035,451
Accounts payable, accrued interest payable and other liabilities	188,418			196,015			221,184			208,029			191,959
Acquired below-market leases, net	40,111			44,026			49,163			62,618			67,815
Obligations associated with real estate held for sale	—			—			—			—			52,656
Total liabilities	3,807,156			3,816,534			4,164,613			4,263,371			4,347,881

Deficit:
Stockholders’ Deficit:
Common and preferred stock and additional paid-in capital	705,105			703,145			705,862			704,129			703,343
Accumulated deficit and dividends	(1,629,743		)	(1,594,407		)	(1,460,333		)	(1,446,663		)	(1,397,328		)
Accumulated other comprehensive loss	(27,879		)	(29,079		)	(34,582		)	(36,422		)	(36,727		)
Total stockholders’ deficit	(952,517		)	(920,341		)	(789,053		)	(778,956		)	(730,712		)
Noncontrolling Interests:
Common units of our Operating Partnership	(129,674		)	(125,181		)	(108,158		)	(106,532		)	(99,851		)
Total deficit	(1,082,191		)	(1,045,522		)	(897,211		)	(885,488		)	(830,563		)
Total liabilities and deficit	$	2,724,965		$	2,771,012		$	3,267,402		$	3,377,883		$	3,517,318

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MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011



MMO Unconsolidated Joint Venture Condensed Balance Sheets (1) (unaudited and in thousands)



	March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010			March 31, 2010

Assets

Investments in real estate	$	970,875		$	968,931		$	1,055,538		$	1,051,355		$	1,049,896
Less: accumulated depreciation	(157,675		)	(150,943		)	(163,204		)	(156,142		)	(148,632		)
Investments in real estate, net	813,200			817,988			892,334			895,213			901,264

Cash and cash equivalents, including restricted cash	20,151			18,955			24,751			21,243			21,882
Rents, deferred rents and other receivables, net	23,410			22,701			21,641			21,392			20,535
Deferred charges, net	29,278			27,875			28,309			30,086			31,809
Other assets	2,610			2,474			3,063			3,832			4,697
Total assets	$	888,649		$	889,993		$	970,098		$	971,766		$	980,187

Liabilities and Members’ Equity

Mortgage loans	$	694,209		$	694,966		$	801,776		$	802,551		$	803,317
Accounts payable, accrued interest payable and other liabilities	22,458			23,001			32,397			27,619			29,297
Acquired below-market leases, net	2,448			2,762			3,120			3,531			3,980
Total liabilities	719,115			720,729			837,293			833,701			836,594
Members’ equity	169,534			169,264			132,805			138,065			143,593
Total liabilities and members’ equity	$	888,649		$	889,993		$	970,098		$	971,766		$	980,187

__________


(1)	We own 20% of the Maguire Macquarie Office (“MMO”) joint venture.

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MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011



Consolidated Statements of Operations (unaudited and in thousands, except share and per share amounts)



	For the Three Months Ended
	March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010			March 31, 2010
Revenue:
Rental	$	58,032		$	59,410		$	61,139		$	61,309		$	62,481
Tenant reimbursements	21,862			24,876			22,436			22,483			23,344
Hotel operations	4,988			5,602			4,867			4,956			5,237
Parking	9,636			9,876			9,559			10,465			10,886
Management, leasing and development services	999			1,365			1,281			1,062			961
Interest and other	337			199			2,631			246			225
Total revenue	95,854			101,328			101,913			100,521			103,134
Expenses:
Rental property operating and maintenance	22,109			25,414			23,521			22,619			22,330
Hotel operating and maintenance	3,573			3,779			3,485			3,543			3,747
Real estate taxes	8,146			7,882			8,264			8,062			8,039
Parking	2,768			2,844			2,814			2,747			2,852
General and administrative	6,691			906			8,073			6,517			7,607
Other expense	1,752			1,779			1,530			1,593			1,439
Depreciation and amortization	27,862			28,837			29,412			28,968			30,962
Impairment of long-lived assets	—			210,122			—			—			—
Interest	62,628			61,704			61,376			58,037			57,634
Total expenses	135,529			343,267			138,475			132,086			134,610
Loss from continuing operations before equity in net (loss) income of unconsolidated joint venture and gain on sale of real estate	(39,675		)	(241,939		)	(36,562		)	(31,565		)	(31,476		)
Equity in (loss) income of unconsolidated joint venture	(312		)	304			204			196			201
Gain on sale of real estate	—			—			—			—			16,591
Loss from continuing operations	(39,987		)	(241,635		)	(36,358		)	(31,369		)	(14,684		)

Discontinued Operations:
Loss from discontinued operations before gains on settlement of debt and sale of real estate	—			(8,486		)	(2,910		)	(24,807		)	(8,507		)
Gains on settlement of debt	—			97,978			9,030			—			49,121
Gain on sale of real estate	—			—			14,689			—			—
Income (loss) from discontinued operations	—			89,492			20,809			(24,807		)	40,614
Net (loss) income	(39,987		)	(152,143		)	(15,549		)	(56,176		)	25,930
Net loss (income) attributable to common units of our Operating Partnership	5,205			18,634			2,455			7,421			(2,584		)
Net (loss) income attributable to MPG Office Trust, Inc.	(34,782		)	(133,509		)	(13,094		)	(48,755		)	23,346
Preferred stock dividends	(4,766		)	(4,766		)	(4,766		)	(4,766		)	(4,766		)
Net (loss) income available to common stockholders	$	(39,548	)	$	(138,275	)	$	(17,860	)	$	(53,521	)	$	18,580
Basic (loss) income per common share:
Loss from continuing operations	$	(0.81	)	$	(4.43	)	$	(0.73	)	$	(0.65	)	$	(0.35	)
Income (loss) from discontinued operations	—			1.61			0.37			(0.45		)	0.73
Net (loss) income available to common stockholders per share	$	(0.81	)	$	(2.82	)	$	(0.36	)	$	(1.10	)	$	0.38
Weighted average number of common shares outstanding	49,016,989			48,981,822			48,874,308			48,692,588			48,534,283

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MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011



Consolidated Statements of Discontinued Operations (unaudited and in thousands)



	For the Three Months Ended
	December 31, 2010			September 30, 2010			June 30, 2010			March 31, 2010
Revenue:
Rental	$	2,464		$	3,751		$	6,404		$	10,166
Tenant reimbursements	1,025			1,535			1,879			1,996
Parking	265			346			417			1,063
Interest and other	817			4,846			68			84
Total revenue	4,571			10,478			8,768			13,309

Expenses:
Rental property operating and maintenance	1,729			1,908			2,199			3,155
Real estate taxes	536			928			1,229			1,456
Parking	207			130			209			348
Depreciation and amortization	1,323			2,070			2,677			4,102
Impairment of long-lived assets	4,457			1,373			17,447			—
Interest	4,805			6,979			9,708			12,376
Loss from early extinguishment of debt	—			—			106			379
Total expenses	13,057			13,388			33,575			21,816

Loss from discontinued operations before gains on settlement of debt and sale of real estate	(8,486		)	(2,910		)	(24,807		)	(8,507		)
Gains on settlement of debt	97,978			9,030			—			49,121
Gain on sale of real estate	—			14,689			—			—
Income (loss) from discontinued operations	$	89,492		$	20,809		$	(24,807	)	$	40,614

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MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011



Consolidated Statements of Operations Related to Properties in Default (1) (unaudited and in thousands)



	For the Three Months Ended
	March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010			March 31, 2010
Revenue:
Rental	$	8,066		$	9,258		$	9,869		$	9,887		$	10,368
Tenant reimbursements	1,357			2,191			1,537			1,489			1,479
Parking	657			702			594			729			773
Interest and other	61			44			46			53			74
Total revenue	10,141			12,195			12,046			12,158			12,694

Expenses:
Rental property operating and maintenance	3,192			3,511			3,518			3,393			3,148
Real estate taxes	1,119			1,034			1,158			1,134			1,135
Parking	225			232			294			241			237
Depreciation and amortization	3,259			3,507			3,737			3,728			3,693
Interest (2)	17,761			18,223			17,497			16,217			16,523
Total expenses	25,556			26,507			26,204			24,713			24,736
Loss from operations related to Properties in Default	$	(15,415	)	$	(14,312	)	$	(14,158	)	$	(12,555	)	$	(12,042	)

__________


(1)	Properties in Default include the following: Stadium Towers Plaza, 2600 Michelson, 550 South Hope, 500 Orange Tower and City Tower. As of the date of this report, the mortgage loans on these properties are in default.

(2)

Includes default interest totaling $8.3 million for the three months ended March 31, 2011, default interest totaling $8.4 million for the three months ended December 31, 2010, default interest totaling $7.0 million and the writeoff of deferred financing costs totaling $0.7 million for the three months ended September 30, 2010, default interest totaling $6.6 million for the three months ended June 30, 2010, and default interest totaling $6.4 million and the writeoff of deferred financing costs totaling $0.6 million for the three months ended March 31, 2010.

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MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011



MMO Unconsolidated Joint Venture Statements of Operations (unaudited and in thousands)



	For the Three Months Ended
	March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010			March 31, 2010
Revenue:
Rental	$	18,497		$	17,710		$	18,471		$	18,529		$	18,547
Tenant reimbursements	5,870			6,219			6,056			5,318			5,344
Parking	1,513			1,472			1,516			1,573			1,488
Interest and other	6			50			4			20			5
Total revenue	25,886			25,451			26,047			25,440			25,384

Expenses:
Rental property operating and maintenance	6,300			6,647			5,994			5,849			5,972
Real estate taxes	3,171			2,890			3,345			3,380			3,072
Parking	362			422			504			335			364
Depreciation and amortization	8,507			8,981			8,477			8,939			8,830
Interest	9,156			9,679			9,550			9,456			9,361
Other	1,219			1,343			1,218			1,969			1,263
Total expenses	28,715			29,962			29,088			29,928			28,862

Loss from continuing operations	(2,829		)	(4,511		)	(3,041		)	(4,488		)	(3,478		)
Income (loss) from discontinued operations	—			40,969			(2,219		)	(2,030		)	(1,587		)
Net (loss) income	$	(2,829	)	$	36,458		$	(5,260	)	$	(6,518	)	$	(5,065	)

Company share (1)	$	(566	)	$	7,292		$	(1,052	)	$	(1,304	)	$	(1,013	)
Intercompany eliminations	254			245			256			248			252
Unallocated (allocated) losses	—			(7,233		)	1,000			1,252			962
Equity in net (loss) income of unconsolidated joint venture	$	(312	)	$	304		$	204		$	196		$	201

_________


(1)	Amount represents our 20% ownership interest in the MMO joint venture.

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MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011



Funds from Operations (unaudited and in thousands, except share and per share amounts)



		For the Three Months Ended
		March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010			March 31, 2010
Reconciliation of net (loss) income available to common stockholders to funds from operations:
Net (loss) income available to common stockholders		$	(39,548	)	$	(138,275	)	$	(17,860	)	$	(53,521	)	$	18,580

Add:	Depreciation and amortization of real estate assets	27,787			30,084			31,406			31,569			34,988
	Depreciation and amortization of real estate assets – unconsolidated joint venture (1)	1,701			1,888			1,823			1,913			1,898
	Net (loss) income attributable to common units of our Operating Partnership	(5,205		)	(18,634		)	(2,455		)	(7,421		)	2,584
	Allocated (unallocated) losses – unconsolidated joint venture (1)	—			7,233			(1,000		)	(1,252		)	(962		)
Deduct:	Gains on sale of real estate	—			—			14,689			—			16,591
Funds from operations available to common stockholders and unit holders (FFO) (2)		$	(15,265	)	$	(117,704	)	$	(2,775	)	$	(28,712	)	$	40,497
Company share of FFO (3)		$	(13,490	)	$	(103,726	)	$	(2,440	)	$	(25,215	)	$	35,552
FFO per share – basic		$	(0.28	)	$	(2.12	)	$	(0.05	)	$	(0.52	)	$	0.73
FFO per share – diluted		$	(0.28	)	$	(2.12	)	$	(0.05	)	$	(0.52	)	$	0.72
Weighted average number of common shares outstanding – basic		49,016,989			48,981,822			48,874,308			48,692,588			48,534,283
Weighted average number of common and common equivalent shares outstanding – diluted		50,237,641			49,619,851			49,507,077			49,442,240			49,197,833
Weighted average diluted shares and units		56,684,418			56,149,712			56,116,486			56,101,775			55,872,406

Reconciliation of FFO to FFO before specified items: (2)
FFO available to common stockholders and unit holders (FFO)		$	(15,265	)	$	(117,704	)	$	(2,775	)	$	(28,712	)	$	40,497
Add:	Loss from early extinguishment of debt	—			—			—			106			379
	Default interest accrued on mortgages in default	10,078			10,533			9,902			10,541			10,363
	Writeoff of deferred financing costs related to mortgages in default	1,626			—			713			—			562
	Impairment of long-lived assets	—			214,579			1,373			17,447			—
	Impairment of long-lived assets – unconsolidated joint venture (1)	—			572			—			—			—
Deduct:	Gains on settlement of debt	—			97,978			9,030			—			49,121
	Gain on settlement of debt – unconsolidated joint venture (1)	—			8,838			—			—			—
FFO before specified items		$	(3,561	)	$	1,164		$	183		$	(618	)	$	2,680
Company share of FFO before specified items (3)		$	(3,147	)	$	1,026		$	161		$	(543	)	$	2,353
FFO per share before specified items – basic		$	(0.06	)	$	0.02		$	—		$	(0.01	)	$	0.05
FFO per share before specified items – diluted		$	(0.06	)	$	0.02		$	—		$	(0.01	)	$	0.05

__________


(1)	Amount represents our 20% ownership interest in the MMO joint venture.


(2)	For the definition and discussion of FFO and FFO before specified items, see page 48.


(3)	Based on a weighted average interest in our Operating Partnership of approximately 88.4% for the three months ended March 31, 2011, 88.1% for the three months ended December 31, 2010, 87.9% for the three months ended September 30, 2010 and 87.8% for all other periods presented.

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MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011



Adjusted Funds from Operations (1) (unaudited and in thousands)



		For the Three Months Ended
		March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010			March 31, 2010
FFO		$	(15,265	)	$	(117,704	)	$	(2,775	)	$	(28,712	)	$	40,497
Add:	Non-real estate depreciation	75			76			76			76			76
	Straight line ground lease expense	511			511			511			512			511
	Amortization of deferred financing costs	954			988			1,321			1,298			1,393
	Unrealized (gain) loss due to hedge ineffectiveness	(308		)	783			1,244			93			80
	Default interest accrued on mortgages in default	10,078			10,533			9,902			10,541			10,363
	Writeoff of deferred financing costs related to mortgages in default	1,626			—			713			—			562
	Non-cash stock compensation	1,998			(2,502		)	1,932			927			945
	Impairment of long-lived assets	—			214,579			1,373			17,447			—
	Loss from early extinguishment of debt	—			—			—			106			379

Deduct:	Gains on settlement of debt	—			97,978			9,030			—			49,121
	Straight line rent	460			988			(73		)	1,029			2,761
	Fair value lease revenue	3,446			3,946			5,988			3,820			4,579
	Capitalized payments (2)	624			637			1,004			1,638			2,013
	Capital lease principal payments	132			277			251			278			340
	Scheduled principal payments on mortgage loans	900			900			600			940			965
	Non-recoverable capital expenditures	149			347			638			77			199
	Recoverable capital expenditures	363			265			779			607			810
	Hotel improvements, equipment upgrades and replacements	776			661			88			57			68
	2nd generation tenant improvements and leasing commissions (3), (4)	1,848			3,229			5,123			1,032			1,353
	MMO joint venture AFFO adjustments (5)	583			8,829			913			584			723
Adjusted funds from operations (AFFO)		$	(9,612	)	$	(10,793	)	$	(10,044	)	$	(7,774	)	$	(8,126	)

__________


(1)	For the definition and computation method of AFFO, see page 49. For a quantitative reconciliation of the differences between AFFO and cash flows from operating activities, see page 19.


(2)	Includes capitalized leasing and development payroll, and capitalized interest.


(3)	Excludes 1st generation tenant improvements and leasing commissions of $0.2 million, $0.8 million, $2.8 million, $1.6 million and $1.2 million for the three months ended March 31, 2011 and December 31, September 30, June 30 and March 31, 2010, respectively.


(4)	Excludes tenant improvements and leasing commissions paid using cash reserves that were funded through loan proceeds upon acquisition or debt refinancing of $0.5 million, $0.2 million, $0.6 million, $0.3 million and $1.0 million for the three months ended March 31, 2011 and December 31, September 30, June 30 and March 31, 2010, respectively.


(5)	Amount represents our 20% ownership interest in the MMO joint venture.

Table of Contents

MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011



Adjusted Funds from Operations Related to Properties in Default (1) (unaudited and in thousands)



		For the Three Months Ended
		March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010			March 31, 2010

FFO		$	(12,156	)	$	80,011		$	(2,232	)	$	(24,049	)	$	(11,712	)
Add:	Amortization of deferred financing costs	—			—			18			27			26
	Writeoff of deferred financing costs	—			—			713			—			562
	Default interest accrued	8,250			10,533			9,902			10,541			10,363
	Impairment of long-lived assets	—			4,457			1,373			10,688			—

Deduct:	Gains on settlement of debt	—			97,978			9,030			—			—
	Straight line rent	530			1,114			(151		)	—			1,997
	Fair value lease revenue	789			1,168			1,624			1,413			1,583
	Capitalized payments (2)	—			—			—			939			1,128
	Non-recoverable capital expenditures	—			31			—			21			—
	Recoverable capital expenditures	—			—			—			—			—
	2nd generation tenant improvements and leasing commissions	—			—			—			—			7
Adjusted funds from operations related to Properties in Default		$	(5,225	)	$	(5,290	)	$	(729	)	$	(5,166	)	$	(5,476	)

__________


(1)	For purposes of this schedule, Properties in Default include the following: Stadium Towers Plaza, Park Place II, 2600 Michelson, Pacific Arts Plaza, 550 South Hope, 500 Orange Tower, City Tower and 207 Goode. In July 2010, we disposed of Park Place II, in October 2010, we disposed of 207 Goode and in December 2010, we disposed of Pacific Arts Plaza.


(2)	Includes regular principal payments related to the Park Place II mortgage loan and capitalized interest related to 207 Goode.

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MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011



Reconciliation of Earnings before Interest, Taxes and Depreciation and Amortization (1) and Adjusted Funds from Operations (2) (unaudited and in thousands)



		For the Three Months Ended
		March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010			March 31, 2010
Reconciliation of net (loss) income to earnings before interest, taxes and depreciation and amortization (EBITDA):
Net (loss) income		$	(39,987	)	$	(152,143	)	$	(15,549	)	$	(56,176	)	$	25,930
Add:	Interest expense (3)	62,628			66,509			68,355			67,745			70,010
	Interest expense – unconsolidated joint venture (4)	1,831			2,136			2,188			2,166			2,145
	Depreciation and amortization (5)	27,862			30,160			31,482			31,645			35,064
	Depreciation and amortization – unconsolidated joint venture (4)	1,701			1,888			1,823			1,913			1,898
Deduct:	Unallocated losses from unconsolidated joint venture (4)	—			(7,233		)	1,000			1,252			962
EBITDA		$	54,035		$	(44,217	)	$	87,299		$	46,041		$	134,085
EBITDA		$	54,035		$	(44,217	)	$	87,299		$	46,041		$	134,085
Add:	Loss from early extinguishment of debt	—			—			—			106			379
	Impairment of long-lived assets	—			214,579			1,373			17,447			—
	Impairment of long-lived assets – unconsolidated joint venture (4)	—			572			—			—			—
Deduct:	Gains on settlement of debt	—			97,978			9,030			—			49,121
	Gain on settlement of debt – unconsolidated joint venture (4)	—			8,838			—			—			—
	Gains on sale of real estate	—			—			14,689			—			16,591
Adjusted EBITDA		$	54,035		$	64,118		$	64,953		$	63,594		$	68,752
Reconciliation of cash flows from operating activities to adjusted funds from operations (AFFO):
Cash flows from operating activities		$	(19,188	)	$	4,295		$	6,348		$	10,966		$	436
Changes in other assets and liabilities		12,712			(10,586		)	(9,764		)	(16,967		)	(6,132		)
Non-recoverable capital expenditures		(149		)	(347		)	(638		)	(77		)	(199		)
Recoverable capital expenditures		(363		)	(265		)	(779		)	(607		)	(810		)
Hotel improvements, equipment upgrades and replacements		(776		)	(661		)	(88		)	(57		)	(68		)
2nd generation tenant improvements and leasing commissions (6), (7)		(1,848		)	(3,229		)	(5,123		)	(1,032		)	(1,353		)
AFFO		$	(9,612	)	$	(10,793	)	$	(10,044	)	$	(7,774	)	$	(8,126	)

__________


(1)	For the definition and discussion of EBITDA and Adjusted EBITDA, see page 50.


(2)	For the definition and discussion of AFFO, see page 49.


(3)	Includes interest expense of $4.8 million, $7.0 million, $9.7 million and $12.4 million for the three months ended December 31, September 30, June 30 and March 31, 2010, respectively, related to discontinued operations.


(4)	Amount represents our 20% ownership interest in the MMO joint venture.


(5)	Includes depreciation and amortization of $1.3 million, $2.1 million, $2.7 million and $4.1 million for the three months ended December 31, September 30, June 30 and March 31, 2010, respectively, related to discontinued operations.


(6)	Excludes 1st generation tenant improvements and leasing commissions of $0.2 million, $0.8 million, $2.8 million, $1.6 million and $1.2 million for the three months ended March 31, 2011 and December 31, September 30, June 30 and March 31, 2010, respectively.


(7)	Excludes tenant improvements and leasing commissions paid using cash reserves that were funded through loan proceeds upon acquisition or debt refinancing of $0.5 million, $0.2 million, $0.6 million, $0.3 million and $1.0 million for the three months ended March 31, 2011 and December 31, September 30, June 30 and March 31, 2010, respectively.

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MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011





Capital Structure



Debt
(in thousands)

		Balance as of
		March 31, 2011

Mortgage and other loans		$	3,578,627
Company share of MMO joint venture debt		138,842
Total combined debt		$	3,717,469

Equity
(in thousands)

	Shares Outstanding	Total Liquidation Preference

Preferred stock	10,000	$	250,000

	Shares & Units Outstanding	Market Value (1)

Common stock	49,044	$	181,954
Noncontrolling common units of our Operating Partnership	6,447	23,918
Total common equity	55,491	$	205,872
Total consolidated market capitalization		$	4,034,499
Total combined market capitalization (2)		$	4,173,341

__________


(1)	Value based on the NYSE closing price of $3.71 on March 31, 2011.


(2)	Includes our share of MMO joint venture debt.

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MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011



Debt Summary (in thousands, except percentages)



	Maturity Date	Principal Amount as of March 31, 2011			% of Debt		Interest Rate as of March 31, 2011 (1)
Floating-Rate Debt
Unsecured term loan (2)	May 1, 2011	$	15,000		0.42	%	3.99	%

Variable-Rate Mortgage Loans:
Plaza Las Fuentes (3)	September 29, 2011	79,200			2.21	%	3.99	%
Brea Corporate Place (4)	May 1, 2012	70,468			1.97	%	2.19	%
Brea Financial Commons (4)	May 1, 2012	38,532			1.08	%	2.19	%
Total variable-rate mortgage loans		188,200			5.26	%	2.95	%

Variable-Rate Swapped to Fixed-Rate Loan:
KPMG Tower (5)	October 9, 2012	400,000			11.17	%	7.16	%
Total floating-rate debt		603,200			16.85	%	5.77	%

Fixed-Rate Debt
Wells Fargo Tower	April 6, 2017	550,000			15.36	%	5.68	%
Gas Company Tower	August 11, 2016	458,000			12.79	%	5.10	%
777 Tower	November 1, 2013	273,000			7.63	%	5.84	%
US Bank Tower	July 1, 2013	260,000			7.26	%	4.66	%
Glendale Center	August 11, 2016	125,000			3.49	%	5.82	%
801 North Brand	April 6, 2015	75,540			2.11	%	5.73	%
The City – 3800 Chapman	May 6, 2017	44,370			1.24	%	5.93	%
701 North Brand (6)	October 1, 2016	33,750			0.94	%	5.87	%
700 North Central	April 6, 2015	27,460			0.77	%	5.73	%
Total fixed-rate debt		1,847,120			51.59	%	5.44	%
Total debt, excluding mortgages in default		2,450,320			68.44	%	5.52	%

Mortgages in Default
Two California Plaza (7)	May 6, 2017	470,000			13.13	%	10.50	%
550 South Hope (8) (9)	May 6, 2017	200,000			5.59	%	10.67	%
City Tower (8)	May 10, 2017	140,000			3.91	%	10.85	%
500 Orange Tower (8)	May 6, 2017	110,000			3.07	%	10.88	%
2600 Michelson (8)	May 10, 2017	110,000			3.07	%	10.69	%
Stadium Towers Plaza (8)	May 11, 2017	100,000			2.79	%	10.78	%
Total mortgages in default		1,130,000			31.56	%	10.65	%

Total consolidated debt		3,580,320			100.00	%	7.14	%
Debt discount		(1,693		)
Total consolidated debt, net		$	3,578,627

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MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011





Debt Summary (continued)

__________


(1)	The March 31, 2011 one-month LIBOR rate of 0.24% was used to calculate interest on the variable-rate loans.


(2)	This loan bears interest at a variable rate of LIBOR plus 3.75%. This loan was repaid upon maturity on May 1, 2011.


(3)	This loan bears interest at a variable rate of LIBOR plus 3.75%. As required by the loan agreement, we have entered into an interest rate cap agreement that limits the LIBOR portion of the interest rate to 4.75% during the loan term, excluding extension periods. Two one-year extensions are available at our option, subject to certain conditions, some of which we may be unable to fulfill.


(4)	This loan bears interest at a rate of LIBOR plus 1.95%. As required by the loan agreement, we have entered into an interest rate cap agreement that limits the LIBOR portion of the interest rate to 6.50% during the loan term. This loan was extended until May 1, 2012.


(5)	This loan bears interest at a rate of LIBOR plus 1.60%. We have entered into an interest rate swap agreement to hedge this loan, which effectively fixes the LIBOR rate at 5.564%.


(6)	We disposed of 701 North Brand on April 1, 2011.

(7)

On March 7, 2011, our special purpose property-owning subsidiary that owns Two California Plaza defaulted on the mortgage loan secured by the property. The interest rate shown for this loan is the default rate as defined in the loan agreement. The special servicer has the contractual right to accelerate the maturity of the debt but has not done so. If we are successful in modifying the mortgage loan, the settlement date and treatment of principal will be as set forth in the modified loan agreement.

(8)

Our special purpose property-owning subsidiary that owns this property is in default for failing to make debt service payments due under this loan. The interest rate shown for this loan is the default rate as defined in the loan agreement. The special servicer has the contractual right to accelerate the maturity of the debt but has not done so. The actual settlement date of the loan will depend upon when the property is disposed of either by the Company or the special servicer, as applicable. Management does not intend to settle this amount with unrestricted cash. We expect that this amount will be settled in a non-cash manner at the time of disposition.


(9)	We disposed of 550 South Hope on April 26, 2011.

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Supplemental Operating and Financial Data

First Quarter 2011



MMO Joint Venture Debt Summary (in thousands, except percentages)



	Maturity Date	Principal Amount as of March 31, 2011		% of Debt		Interest Rate as of March 31, 2011 (1)
Fixed-Rate Debt
Wells Fargo Center (Denver, CO)	April 6, 2015	$	276,000	39.86	%	5.26	%
One California Plaza	July 1, 2011	136,556		19.72	%	4.73	%
San Diego Tech Center	April 11, 2015	133,000		19.21	%	5.70	%
Cerritos Corporate Center	February 1, 2016	94,868		13.70	%	5.54	%
Stadium Gateway	February 1, 2016	52,000		7.51	%	5.66	%
Total fixed-rate debt		692,424		100.00	%	5.31	%
Debt premium, net of discount		1,785
Total joint venture debt, net		$	694,209

Our portion of joint venture debt (1)		$	138,842

__________


(1)	We own 20% of the MMO joint venture.

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First Quarter 2011



Debt Maturities (in thousands, except percentages)



	2011			2012			2013			2014			2015			Thereafter			Total
Floating-Rate Debt
Unsecured term loan (1)	$	15,000		$	—		$	—		$	—		$	—		$	—		$	15,000

Variable-Rate Mortgage Loans:
Plaza Las Fuentes (2)	79,200			—			—			—			—			—			79,200
Brea Corporate Place	—			70,468			—			—			—			—			70,468
Brea Financial Commons	—			38,532			—			—			—			—			38,532
Total variable-rate mortgage loans	79,200			109,000			—			—			—			—			188,200

Variable-Rate Swapped to Fixed-Rate Loan:
KPMG Tower	—			400,000			—			—			—			—			400,000
Total floating-rate debt	94,200			509,000			—			—			—			—			603,200

Fixed-Rate Debt
Wells Fargo Tower	—			—			—			—			—			550,000			550,000
Gas Company Tower	—			—			—			—			—			458,000			458,000
777 Tower	—			—			273,000			—			—			—			273,000
US Bank Tower	—			—			260,000			—			—			—			260,000
Glendale Center	—			—			—			—			—			125,000			125,000
801 North Brand	—			—			—			—			75,540			—			75,540
The City – 3800 Chapman	—			—			—			—			—			44,370			44,370
701 North Brand (3)	—			—			—			—			—			33,750			33,750
700 North Central	—			—			—			—			27,460			—			27,460
Total fixed-rate debt	—			—			533,000			—			103,000			1,211,120			1,847,120
Total debt, excluding mortgages in default	94,200			509,000			533,000			—			103,000			1,211,120			2,450,320
Debt discount	—			—			(1,693		)	—			—			—			(1,693		)
Total debt, excluding mortgages in default, net	94,200			509,000			531,307			—			103,000			1,211,120			2,448,627

Mortgages in Default
Two California Plaza (4)	—			—			—			—			—			470,000			470,000
550 South Hope (5) (6)	—			—			—			—			—			200,000			200,000
City Tower (5)	—			—			—			—			—			140,000			140,000
500 Orange Tower (5)	—			—			—			—			—			110,000			110,000
2600 Michelson (5)	—			—			—			—			—			110,000			110,000
Stadium Towers Plaza (5)	—			—			—			—			—			100,000			100,000
Total mortgages in default	—			—			—			—			—			1,130,000			1,130,000
Total consolidated debt, net	$	94,200		$	509,000		$	531,307		$	—		$	103,000		$	2,341,120		$	3,578,627
Weighted average interest rate, excluding mortgages in default	3.99		%	6.10		%	5.27		%	—		%	5.73		%	5.49		%	5.52		%
Weighted average interest rate, mortgages in default	—		%	—		%	—		%	—		%	—		%	10.65		%	10.65		%
Weighted average interest rate, consolidated	3.99		%	6.10		%	5.27		%	—		%	5.73		%	7.98		%	7.14		%

__________


(1)	This loan was repaid upon maturity on May 1, 2011.


(2)	Two one-year extensions are available at our option, subject to certain conditions, some of which we may be unable to fulfill.


(3)	We disposed of 701 North Brand on April 1, 2011.


(4)	Amounts shown in the table above for mortgages in default reflect contractual maturity dates per the loan agreements. The special servicers have the contractual right to accelerate the maturity dates of the debt but have not done so. If we are successful in modifying the mortgage loan, the settlement date and treatment of principal will be as set forth in the modified loan agreement.

(5)

Amounts shown in the table above for mortgages in default reflect contractual maturity dates per the loan agreements. The special servicers have the contractual right to accelerate the maturity dates of the debt but have not done so. The actual settlement date of the loan will depend upon when the property is disposed of either by the Company or the special servicer, as applicable. Management does not intend to settle this amount with unrestricted cash. We expect that this amount will be settled in a non-cash manner at the time of disposition.


(6)	We disposed of 550 South Hope on April 26, 2011.

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MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011



MMO Joint Venture Debt Maturities (in thousands, except percentages)



	2011			2012			2013			2014			2015			Thereafter			Total
Fixed-Rate Debt
Wells Fargo Center (Denver, CO)	$	—		$	—		$	—		$	—		$	276,000		$	—		$	276,000
One California Plaza	136,556			—			—			—			—			—			136,556
San Diego Tech Center	—			—			—			—			133,000			—			133,000
Cerritos Corporate Center	922			1,330			1,406			1,486			1,570			88,154			94,868
Stadium Gateway	—			—			—			—			—			52,000			52,000
	137,478			1,330			1,406			1,486			410,570			140,154			692,424
Debt premium, net of discount	—			—			—			—			1,785			—			1,785
Total joint venture debt, net	$	137,478		$	1,330		$	1,406		$	1,486		$	412,355		$	140,154		$	694,209
Weighted average interest rate	4.74		%	5.54		%	5.54		%	5.54		%	5.40		%	5.58		%	5.31		%

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MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011



Portfolio Data

Table of Contents

MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011



Same Store Analysis (unaudited and in thousands, except percentages)



	For the Three Months Ended March 31, (1)
	2011			2010			% Change
Total Same Store Portfolio
Number of properties	14			14
Square feet as of March 31	9,462,979			9,401,471
Percentage of wholly-owned Office Portfolio	100.0		%	100.0		%
Weighted average leased percentage (2)	83.5		%	84.7		%

GAAP
Breakdown of Net Operating Income:
Operating revenue	$	79,508		$	84,172		(5.5	)%
Operating expenses	28,446			28,655			(0.7	)%
Other expense	1,264			1,264			—	%
Net operating income	$	49,798		$	54,253		(8.2	)%

CASH BASIS
Breakdown of Net Operating Income:
Operating revenue	$	76,922		$	81,359		(5.5	)%
Operating expenses	28,446			28,656			(0.7	)%
Other expense	743			743			—	%
Net operating income	$	47,733		$	51,960		(8.1	)%

__________


(1)	Properties included in the Same Store analysis are the properties in our Office Portfolio, with the exception of the Properties in Default and our joint venture properties.


(2)	Represents weighted average leased amounts for the Same Store Portfolio.

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MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011





Portfolio Overview



Property by Submarket						Square Feet				Leased % and In-Place Rents
Property	Number of Buildings	Number of Tenants	Year Built / Renovated	Ownership %		Net Building Rentable	Effective (1)	% of Net Rentable		% Leased		Total Annualized Rents (2)		Effective Annualized Rents (2)		Annualized Rent $/RSF (3)
Office Properties
Los Angeles County
Los Angeles Central Business District:
Gas Company Tower	1	17	1991	100	%	1,349,169	1,349,169	10.42	%	94.6	%	$	34,835,671	$	34,835,671	$	27.30
US Bank Tower	1	54	1989	100	%	1,431,808	1,431,808	11.06	%	58.5	%	19,443,113		19,443,113		23.22
Wells Fargo Tower	2	56	1982	100	%	1,400,531	1,400,531	10.82	%	92.6	%	28,586,764		28,586,764		22.04
Two California Plaza	1	58	1992	100	%	1,327,835	1,327,835	10.26	%	81.1	%	21,975,487		21,975,487		20.40
KPMG Tower	1	21	1983	100	%	1,147,421	1,147,421	8.87	%	95.5	%	26,225,833		26,225,833		23.94
777 Tower	1	34	1991	100	%	1,014,665	1,014,665	7.84	%	79.4	%	17,881,379		17,881,379		22.19
One California Plaza	1	27	1985	20	%	1,022,876	204,575	7.90	%	77.2	%	16,654,906		3,330,981		21.10
Total LACBD Submarket	8	267				8,694,305	7,876,004	67.17	%	82.6	%	165,603,153		152,279,228		23.07

Tri-Cities Submarket:
Glendale Center	2	4	1973/1996	100	%	396,000	396,000	3.06	%	93.8	%	8,640,473		8,640,473		23.26
801 North Brand	1	30	1987	100	%	282,788	282,788	2.19	%	83.2	%	4,851,790		4,851,790		20.61
701 North Brand	1	13	1978	100	%	131,129	131,129	1.01	%	97.2	%	2,286,548		2,286,548		17.95
700 North Central	1	12	1979	100	%	134,168	134,168	1.04	%	66.7	%	1,560,481		1,560,481		17.45
Plaza Las Fuentes	3	7	1989	100	%	193,254	193,254	1.49	%	93.9	%	5,348,886		5,348,886		29.47
Total Tri-Cities Submarket	8	66				1,137,339	1,137,339	8.79	%	88.4	%	22,688,178		22,688,178		22.57

Cerritos Office Submarket:
Cerritos – Phase I	1	1	1999	20	%	221,968	44,394	1.71	%	100.0	%	6,317,209		1,263,442		28.46
Cerritos – Phase II	1	—	2001	20	%	104,567	20,913	0.81	%	100.0	%	2,482,421		496,484		23.74
Total Cerritos Submarket	2	1				326,535	65,307	2.52	%	100.0	%	8,799,630		1,759,926		26.95

Total Los Angeles County	18	334				10,158,179	9,078,650	78.48	%	83.8	%	$	197,090,961	$	176,727,332	$	23.16

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Supplemental Operating and Financial Data

First Quarter 2011





Portfolio Overview (continued)



Property by Submarket						Square Feet				Leased % and In-Place Rents
Property	Number of Buildings	Number of Tenants	Year Built / Renovated	Ownership %		Net Building Rentable	Effective (1)	% of Net Rentable		% Leased		Total Annualized Rents (2)		Effective Annualized Rents (2)		Annualized Rent $/RSF (3)
Office Properties
Orange County
Central Orange Submarket:
3800 Chapman	1	2	1984	100	%	158,767	158,767	1.23	%	75.9	%	$	2,642,465	$	2,642,465	$	21.94
Stadium Gateway	1	7	2001	20	%	272,826	54,565	2.10	%	72.2	%	4,326,348		865,270		21.98
Total Central Orange Submarket	2	9				431,593	213,332	3.33	%	73.5	%	6,968,813		3,507,735		21.96

Other:
Brea Corporate Place	2	22	1987	100	%	329,904	329,904	2.55	%	73.9	%	3,607,569		3,607,569		14.79
Brea Financial Commons	3	2	1987	100	%	165,540	165,540	1.28	%	90.7	%	3,035,782		3,035,782		20.23
Total Other	5	24				495,444	495,444	3.83	%	79.5	%	6,643,351		6,643,351		16.86

Total Orange County	7	33				927,037	708,776	7.16	%	76.7	%	$	13,612,164	$	10,151,086	$	19.14

San Diego County
Sorrento Mesa Submarket:
San Diego Tech Center	11	23	1984/1986	20	%	645,449	129,090	4.99	%	81.3	%	$	10,437,173	$	2,087,435	$	19.89
Total San Diego County	11	23				645,449	129,090	4.99	%	81.3	%	$	10,437,173	$	2,087,435	$	19.89

Other
Denver, CO – Downtown Submarket:
Wells Fargo Center – Denver	1	39	1983	20	%	1,212,205	242,441	9.37	%	93.0	%	$	22,254,328	$	4,450,865	$	19.75
Total Other	1	39				1,212,205	242,441	9.37	%	93.0	%	$	22,254,328	$	4,450,865	$	19.75


Total Office Properties	37	429				12,942,870	10,158,957	100.00	%	84.0	%	$	243,394,626	$	193,416,718	$	22.39
Effective Office Properties						10,158,957				83.7	%					$	22.75

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Supplemental Operating and Financial Data

First Quarter 2011





Portfolio Overview (continued)



Property by Submarket						Square Feet			Leased % and In-Place Rents
Property	Number of Buildings	Number of Tenants	Year Built / Renovated	Ownership %		Net Building Rentable	Effective (1)	% of Net Rentable	% Leased		Total Annualized Rents (2)		Effective Annualized Rents (2)		Annualized Rent $/RSF (3)
Properties in Default
550 South Hope Street	1	34	1991	100	%	565,738	565,738		80.8	%	$	8,699,903	$	8,699,903	$	19.04
2600 Michelson	1	18	1986	100	%	309,742	309,742		50.2	%	2,405,389		2,405,389		15.48
Stadium Towers Plaza	1	20	1988	100	%	258,575	258,575		44.4	%	2,329,853		2,329,853		20.29
500 Orange Tower	3	28	1987	100	%	335,898	335,898		66.7	%	4,063,090		4,063,090		18.15
City Tower	1	24	1988	100	%	412,839	412,839		77.4	%	6,785,839		6,785,839		21.23
Total Properties in Default	7	124				1,882,792	1,882,792		67.5	%	$	24,284,074	$	24,284,074	$	19.11

Total Office and Properties in Default						14,825,662	12,041,749		81.9	%
Effective Office and Properties in Default						12,041,749			81.1	%

Hotel Property						SQFT	Effective SQFT	Number of Rooms
Westin^® Hotel, Pasadena, CA				100	%	266,000	266,000	350
Total Office, Properties in Default and Hotel Properties						15,091,662	12,307,749

Parking Properties						SQFT	Effective SQFT	Vehicle Capacity	Effective Vehicle Capacity		Annualized Parking Revenue (4)		Effective Annualized Parking Revenue (5)		Effective Annualized Parking Revenue per Vehicle Capacity (6)
On-Site Parking						5,457,967	3,965,609	15,917	11,469		$	32,982,963	$	28,140,501	$	2,454
Off-Site Garages						1,714,435	1,714,435	5,729	5,729		9,368,301		9,368,301		1,635
Properties in Default						1,626,436	1,626,436	5,425	5,425		2,629,597		2,629,597		485
Total Parking Properties						8,798,838	7,306,480	27,071	22,623		$	44,980,861	$	40,138,399	1,774

Total Office, Properties in Default, Hotel and Parking Properties						23,890,500	19,614,229

__________


(1)	Includes 100% of our consolidated portfolio and 20% of our MMO joint venture portfolio.

(2)

Annualized rent represents the annualized monthly contractual rent under existing leases as of March 31, 2011. This amount reflects total base rent before any one-time or non-recurring rent abatements but after annually recurring rent credits and is shown on a net basis; thus, for any tenant under a partial gross lease, the expense stop, or under a fully gross lease, the current year operating expenses (which may be estimates as of such date), are subtracted from gross rent.


(3)	Annualized rent per rentable square foot represents annualized rent as computed above, divided by the total square footage under lease as of the same date.


(4)	Annualized parking revenue represents the annualized quarterly parking revenue as of March 31, 2011.


(5)	Effective annualized parking revenue represents the annualized quarterly parking revenue as of March 31, 2011 adjusted to include 100% of our consolidated portfolio and 20% of our MMO joint venture portfolio.


(6)	Effective annualized parking revenue per vehicle capacity represents the effective annualized parking revenue divided by the effective vehicle capacity.

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Supplemental Operating and Financial Data

First Quarter 2011





Portfolio Geographic Distribution (Excluding Properties in Default) (1)

__________


(1)	The Portfolio Geographic Distribution is based on effective net rentable square feet for our Office Properties and includes our pro-rata share of the MMO joint venture.

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Supplemental Operating and Financial Data

First Quarter 2011





Portfolio Overview — Leased Percentages and Weighted Average Remaining Lease Term



	Ownership ( % )		Weighted Average Remaining Lease Term (in years)
				% Leased
				Q1 2011		Q4 2010		Q3 2010		Q2 2010		Q1 2010
Office Properties
Gas Company Tower	100	%	8.4	94.6	%	94.6	%	92.6	%	92.5	%	92.5	%
US Bank Tower	100	%	4.6	58.5	%	57.9	%	57.5	%	54.3	%	62.2	%
Wells Fargo Tower	100	%	4.2	92.6	%	94.3	%	94.4	%	94.3	%	94.1	%
Two California Plaza	100	%	3.9	81.1	%	81.9	%	82.0	%	83.9	%	83.8	%
KPMG Tower	100	%	7.8	95.5	%	94.3	%	93.9	%	93.8	%	93.9	%
777 Tower	100	%	4.9	79.4	%	79.6	%	77.4	%	75.3	%	75.6	%
One California Plaza	20	%	4.3	77.2	%	76.6	%	76.5	%	76.5	%	76.2	%
Glendale Center	100	%	3.4	93.8	%	93.8	%	100.0	%	100.0	%	100.0	%
801 North Brand	100	%	1.8	83.2	%	82.3	%	82.3	%	81.7	%	81.4	%
701 North Brand (1)	100	%	3.4	97.2	%	97.2	%	97.2	%	97.2	%	97.2	%
700 North Central	100	%	2.8	66.7	%	66.7	%	73.4	%	73.4	%	75.5	%
Plaza Las Fuentes	100	%	7.7	93.9	%	100.0	%	100.0	%	100.0	%	100.0	%
Cerritos – Phase I	20	%	3.5	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Cerritos – Phase II	20	%	5.2	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
3800 Chapman	100	%	4.2	75.9	%	75.9	%	75.9	%	75.9	%	75.9	%
Stadium Gateway	20	%	4.1	72.2	%	72.2	%	72.2	%	88.0	%	88.0	%
Brea Corporate Place	100	%	3.2	73.9	%	73.9	%	73.3	%	71.6	%	71.6	%
Brea Financial Commons	100	%	3.1	90.7	%	90.7	%	90.7	%	90.7	%	90.7	%
San Diego Tech Center	20	%	3.6	81.3	%	82.3	%	78.5	%	79.3	%	80.0	%
Wells Fargo Center – Denver	20	%	6.3	93.0	%	92.5	%	92.0	%	92.4	%	91.7	%
Total Office Properties			5.2	84.0	%	84.2	%	83.7	%	83.7	%	84.5	%
Effective Office Properties (2)			5.3	83.7	%	83.9	%	83.6	%	83.1	%	84.3	%

Properties in Default
550 South Hope Street (3)	100	%	5.1	80.8	%	81.5	%	82.0	%	80.7	%	82.7	%
2600 Michelson	100	%	3.7	50.2	%	60.5	%	60.5	%	72.2	%	67.5	%
Stadium Towers Plaza	100	%	2.2	44.4	%	46.2	%	46.2	%	45.0	%	48.9	%
500 Orange Tower	100	%	4.1	66.7	%	69.0	%	69.1	%	67.2	%	67.9	%
City Tower	100	%	2.2	77.4	%	78.2	%	78.2	%	80.0	%	79.8	%
Total Properties in Default			3.8	67.5	%	70.3	%	70.4	%	71.8	%	72.3	%
Total Office Properties and Properties in Default			5.1	81.9	%	82.4	%	82.0	%	82.2	%	83.0	%
Total Effective Office Properties and Properties in Default (2)			5.1	81.1	%	81.8	%	81.5	%	81.4	%	82.4	%

__________


(1)	We disposed of this property on April 1, 2011.


(2)	Includes 100% of our consolidated portfolio and 20% of our MMO joint venture portfolio.


(3)	We disposed of this property on April 26, 2011.

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Supplemental Operating and Financial Data

First Quarter 2011





Major Tenants — Office Properties (Excluding Properties in Default)



	Tenant	Number of Locations	Annualized Rent (1)		% of Annualized Rent		Leased Square Feet	% of Leased Square Feet of Effective Portfolio		Weighted Average Remaining Lease Term in Months	S & P Credit Rating / National Recognition (2)
	Rated
1	Southern California Gas Company	1	$	18,417,787	9.5	%	527,916	6.2	%	139	A
2	Wells Fargo Bank (3)	2	7,482,534		3.9	%	385,759	4.5	%	43	AA-
3	Bank of America (3)	5	5,118,654		2.6	%	223,006	2.6	%	26	A+
4	AT&T (3)	4	4,490,396		2.3	%	180,349	2.1	%	32	A-
5	US Bank, National Association	2	4,030,442		2.1	%	157,488	1.9	%	50	AA-
6	Disney Enterprises	1	3,706,960		1.9	%	163,444	1.9	%	63	A
7	FNMA (Fannie Mae)	1	2,364,304		1.2	%	61,655	0.7	%	83	AAA
8	Home Depot	1	2,327,207		1.2	%	99,706	1.2	%	26	BBB+
9	American Home Assurance	1	1,953,024		1.0	%	112,042	1.3	%	29	A
10	Raytheon	1	1,561,471		0.8	%	78,056	0.9	%	31	A-
	Total Rated / Weighted Average (3), (4)		51,452,779		26.5	%	1,989,421	23.3	%	67
	Total Investment Grade Tenants (3)		$	68,080,297	35.2	%	2,770,182	32.6	%

	Nationally Recognized
11	Latham & Watkins LLP	2	9,422,841		4.9	%	397,991	4.7	%	140	3rd Largest US Law Firm
12	Gibson, Dunn & Crutcher LLP	1	6,464,056		3.3	%	268,268	3.2	%	80	14th Largest US Law Firm
13	Deloitte & Touche LLP	1	5,085,290		2.6	%	290,588	3.4	%	48	Largest US Accounting Firm
14	Marsh USA, Inc.	1	4,319,801		2.2	%	210,722	2.5	%	85	World’s Largest Insurance Broker
15	Morrison & Foerster LLP	1	3,885,728		2.0	%	138,776	1.6	%	30	21st Largest US Law Firm
16	Sidley Austin LLP	1	3,859,712		2.0	%	192,457	2.3	%	153	6th Largest US Law Firm
17	Munger, Tolles & Olson LLP	1	3,789,495		2.0	%	165,019	1.9	%	131	132nd Largest US Law Firm
18	KPMG LLP	1	3,688,892		1.9	%	175,971	2.1	%	39	4th Largest US Accounting Firm
19	PricewaterhouseCoopers LLP	1	2,990,625		1.5	%	160,784	1.9	%	26	3rd Largest US Accounting Firm
20	Bingham McCutchen LLP	1	2,826,035		1.5	%	104,712	1.2	%	22	24th Largest US Law Firm
	Total Nationally Recognized / Weighted Average (3), (4)		46,332,475		23.9	%	2,105,288	24.8	%	84
	Total Nationally Recognized Tenants (3)		82,670,803		42.7	%	3,739,608	44.0	%
	Total / Weighted Average (3), (4)		$	97,785,254	50.4	%	4,094,709	48.1	%	76
	Total Investment Grade or Nationally Recognized Tenants (3)		$	150,751,100	77.9	%	6,509,790	76.6	%

__________


(1)	Annualized base rent is calculated as monthly contractual base rent under existing leases as of March 31, 2011, multiplied by 12. For those leases where rent has not yet commenced, the first month in which rent is to be received is used to determine annualized base rent.


(2)	S&P credit ratings are as of March 31, 2011. Rankings of law firms are based on total gross revenue in 2009 as reported by American Lawyer Media’s LAW.com.


(3)	Includes 20% of annualized rent and leased square footage for our MMO joint venture properties.


(4)	The weighted average calculation is based on the effective net rentable square feet leased by each tenant, which reflects our pro-rata share of our MMO joint venture.

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Supplemental Operating and Financial Data

First Quarter 2011





Portfolio Tenant Classification Description (Excluding Properties in Default) (1), (2)

__________


(1)	Percentages are based upon effective leased square feet.


(2)	Classifications are based on the “North American Industrial Classification System” (NAICS).

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Supplemental Operating and Financial Data

First Quarter 2011





Lease Expirations — Wholly Owned Portfolio



Year	Total Area in Square Feet Covered by Expiring Leases	Percentage of Aggregate Square Feet		Annualized Rent		Percentage of Annualized Rent		Current Rent per Square Foot (1)		Rent per Square Foot at Expiration (2)

Available	2,166,920	19.1	%
2011	1,029,153	9.1	%	$	23,896,684	11.6	%	$	23.22	$	23.29
2012	703,378	6.2	%	16,092,167		7.8	%	22.88		23.65
2013	1,877,082	16.6	%	41,942,715		20.4	%	22.34		23.85
2014	799,731	7.1	%	15,607,305		7.6	%	19.52		22.00
2015	933,985	8.2	%	19,326,847		9.4	%	20.69		22.78
2016	506,985	4.5	%	10,383,028		5.1	%	20.48		20.67
2017	1,036,310	9.1	%	22,695,711		11.1	%	21.90		23.54
2018	486,644	4.3	%	11,102,596		5.4	%	22.81		28.17
2019	276,736	2.4	%	6,302,521		3.1	%	22.77		29.04
2020	276,126	2.4	%	5,650,335		2.8	%	20.46		25.58
Thereafter	1,252,721	11.0	%	32,206,406		15.7	%	25.71		31.29
	11,345,771	100.0	%	$	205,206,315	100.0	%	$	22.36	$	24.72

Leases Expiring in the Next 4 Quarters:

2nd Quarter 2011	144,022	1.3	%	$	2,964,611	1.4	%	$	20.58	$	20.58
3rd Quarter 2011 (3)	397,419	3.5	%	8,168,259		4.0	%	20.55		20.63
4th Quarter 2011	487,712	4.3	%	12,763,814		6.2	%	26.17		26.26
1st Quarter 2012	175,120	1.5	%	3,805,555		1.9	%	21.73		21.98
	1,204,273	10.6	%	$	27,702,239	13.5	%	$	23.00	$	23.10

__________


(1)	Current rent per leased square foot represents current base rent, divided by total square footage under lease as of the same date.


(2)	Rent per leased square foot at expiration represents base rent including any future rent steps, and thus represents the base rent that will be in place at lease expiration.


(3)	Includes tenants leasing on a month-to-month basis.

Table of Contents

MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011



Lease Expirations — Wholly Owned Portfolio Los Angeles County



Year	Total Area in Square Feet Covered by Expiring Leases	Percentage of Aggregate Square Feet		Annualized Rent		Percentage of Annualized Rent		Current Rent per Square Foot (1)		Rent per Square Foot at Expiration (2)

Available	1,523,801	16.2	%
2011	813,112	8.7	%	$	19,876,040	11.0	%	$	24.44	$	24.50
2012	617,137	6.6	%	14,258,006		7.9	%	23.10		23.89
2013	1,417,526	15.1	%	31,552,554		17.5	%	22.26		23.60
2014	588,127	6.3	%	12,165,007		6.8	%	20.68		23.12
2015	849,478	9.1	%	18,015,585		10.0	%	21.21		23.24
2016	392,544	4.2	%	8,972,331		5.0	%	22.86		22.25
2017	966,147	10.3	%	21,545,686		11.9	%	22.30		23.99
2018	440,858	4.7	%	10,439,685		5.8	%	23.68		28.69
2019	261,836	2.8	%	6,012,865		3.3	%	22.96		29.59
2020	271,946	2.9	%	5,607,423		3.1	%	20.62		25.70
Thereafter	1,231,994	13.1	%	31,891,146		17.7	%	25.89		31.56
	9,374,506	100.0	%	$	180,336,328	100.0	%	$	22.97	$	25.43

Leases Expiring in the Next 4 Quarters:

2nd Quarter 2011	126,590	1.4	%	$	2,613,374	1.4	%	$	20.64	$	20.64
3rd Quarter 2011 (3)	280,195	3.0	%	5,873,520		3.3	%	20.96		21.07
4th Quarter 2011	406,327	4.3	%	11,389,146		6.3	%	28.03		28.06
1st Quarter 2012	151,669	1.6	%	3,346,051		1.9	%	22.06		22.34
	964,781	10.3	%	$	23,222,091	12.9	%	$	24.07	$	24.16

__________


(1)	Current rent per leased square foot represents current base rent, divided by total square footage under lease as of the same date.


(2)	Rent per leased square foot at expiration represents base rent including any future rent steps, and thus represents the base rent that will be in place at lease expiration.


(3)	Includes tenants leasing on a month-to-month basis.

Table of Contents

MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011



Lease Expirations — Wholly Owned Portfolio Orange County



Year	Total Area in Square Feet Covered by Expiring Leases	Percentage of Aggregate Square Feet		Annualized Rent		Percentage of Annualized Rent		Current Rent per Square Foot (1)		Rent per Square Foot at Expiration (2)

Available	643,119	32.6	%
2011	216,041	11.0	%	$	4,020,643	16.2	%	$	18.61	$	18.75
2012	86,241	4.4	%	1,834,161		7.4	%	21.27		21.93
2013	459,556	23.3	%	10,390,162		41.8	%	22.61		24.59
2014	211,604	10.7	%	3,442,298		13.8	%	16.27		18.90
2015	84,507	4.3	%	1,311,263		5.3	%	15.52		18.15
2016	114,441	5.8	%	1,410,697		5.7	%	12.33		15.26
2017	70,163	3.6	%	1,150,026		4.6	%	16.39		17.30
2018	45,786	2.3	%	662,911		2.7	%	14.48		23.19
2019	14,900	0.8	%	289,656		1.1	%	19.44		19.44
2020	4,180	0.2	%	42,912		0.2	%	10.27		17.40
Thereafter	20,727	1.0	%	315,258		1.2	%	15.21		15.00
	1,971,265	100.0	%	$	24,869,987	100.0	%	$	18.73	$	20.54

Leases Expiring in the Next 4 Quarters:

2nd Quarter 2011	17,432	0.9	%	$	351,238	1.4	%	$	20.15	$	20.15
3rd Quarter 2011 (3)	117,224	6.0	%	2,294,739		9.2	%	19.58		19.58
4th Quarter 2011	81,385	4.1	%	1,374,666		5.6	%	16.89		17.27
1st Quarter 2012	23,451	1.1	%	459,505		1.8	%	19.59		19.70
	239,492	12.1	%	$	4,480,148	18.0	%	$	18.71	$	18.85

___________


(1)	Current rent per leased square foot represents current base rent, divided by total square footage under lease as of the same date.


(2)	Rent per leased square foot at expiration represents base rent including any future rent steps, and thus represents the base rent that will be in place at lease expiration.


(3)	Includes tenants leasing on a month-to-month basis.

Table of Contents

MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011





Lease Expirations — Properties in Default (1)



Year	Total Area in Square Feet Covered by Expiring Leases	Percentage of Aggregate Square Feet		Annualized Rent		Percentage of Annualized Rent		Current Rent per Square Foot (2)		Rent per Square Foot at Expiration (3)

Available	612,210	32.5	%
2011	164,981	8.8	%	$	3,278,766	13.5	%	$	19.87	$	19.93
2012	134,724	7.2	%	2,821,043		11.6	%	20.94		21.41
2013	274,043	14.6	%	6,324,776		26.0	%	23.08		25.06
2014	198,522	10.5	%	3,133,157		12.9	%	15.78		18.18
2015	120,767	6.4	%	1,965,808		8.1	%	16.28		18.31
2016	66,581	3.5	%	821,791		3.4	%	12.34		15.18
2017	154,159	8.2	%	2,845,678		11.7	%	18.46		20.75
2018	77,268	4.1	%	1,510,536		6.2	%	19.55		25.76
2019	54,084	2.9	%	1,177,964		4.9	%	21.78		26.88
2020	4,180	0.2	%	42,912		0.2	%	10.27		17.40
Thereafter	21,273	1.1	%	361,643		1.5	%	17.00		27.52
	1,882,792	100.0	%	$	24,284,074	100.0	%	$	19.11	$	21.24

Leases Expiring in the Next 4 Quarters:

2nd Quarter 2011	16,065	0.9	%	$	334,916	1.4	%	$	20.85	$	20.85
3rd Quarter 2011 (4)	97,791	5.2	%	1,932,398		7.9	%	19.76		19.76
4th Quarter 2011	51,125	2.7	%	1,011,452		4.2	%	19.78		19.96
1st Quarter 2012	34,141	1.8	%	655,564		2.7	%	19.20		19.34
	199,122	10.6	%	$	3,934,330	16.2	%	$	19.76	$	19.83

__________

(1)

All Properties in Default are located in Orange County, except for 550 South Hope, which is located in the LACBD. Currently, there are 108,900 square feet available for lease at 550 South Hope, with 47,930 square feet, 52,251 square feet, 22,708 square feet, 63,435 square feet, 42,264 square feet and 228,250 square feet scheduled to expire in 2011, 2012, 2013, 2014, 2015 and thereafter, respectively.


(2)	Current rent per leased square foot represents current base rent, divided by total square footage under lease as of the same date.


(3)	Rent per leased square foot at expiration represents base rent including any future rent steps, and thus represents the base rent that will be in place at lease expiration.


(4)	Includes tenants leasing on a month-to-month basis.

Table of Contents

MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011





Lease Expirations — MMO Joint Venture Portfolio



Year	Total Area in Square Feet Covered by Expiring Leases	Percentage of Aggregate Square Feet		Annualized Rent		Percentage of Annualized Rent		Current Rent per Square Foot (1)		Rent per Square Foot at Expiration (2)

Available	515,608	14.8	%
2011	266,169	7.7	%	$	4,954,847	7.9	%	$	18.62	$	18.65
2012	306,595	8.8	%	6,544,649		10.5	%	21.35		21.66
2013	243,501	7.0	%	5,612,096		9.0	%	23.05		25.16
2014	805,332	23.1	%	17,551,076		28.1	%	21.79		24.00
2015	242,209	7.0	%	4,690,948		7.5	%	19.37		22.25
2016	260,986	7.5	%	4,875,307		7.8	%	18.68		18.08
2017	25,787	0.8	%	478,969		0.8	%	18.57		26.18
2018	97,820	2.8	%	1,975,671		3.1	%	20.20		28.44
2019	—	—	%	—		—	%	—		—
2020	544,249	15.6	%	11,914,754		19.1	%	21.89		30.01
Thereafter	171,635	4.9	%	3,874,068		6.2	%	22.57		29.97
	3,479,891	100.0	%	$	62,472,385	100.0	%	$	21.08	$	24.26

Leases Expiring in the Next 4 Quarters:

2nd Quarter 2011	9,994	0.3	%	$	147,823	0.2	%	$	14.79	$	14.79
3rd Quarter 2011 (3)	83,770	2.4	%	1,582,247		2.5	%	18.89		18.91
4th Quarter 2011	172,405	5.0	%	3,224,777		5.2	%	18.70		18.76
1st Quarter 2012	153,234	4.4	%	2,957,030		4.8	%	19.30		19.42
	419,403	12.1	%	$	7,911,877	12.7	%	$	18.86	$	18.94

__________


(1)	Current rent per leased square foot represents current base rent, divided by total square footage under lease as of the same date.


(2)	Rent per leased square foot at expiration represents base rent including any future rent steps, and thus represents the base rent that will be in place at lease expiration.


(3)	Includes tenants leasing on a month-to-month basis.

Table of Contents

MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011





Leasing Activity — Total Portfolio



	Total Portfolio				Effective Portfolio (1)
	For the Three Months Ended March 31, 2011		% Leased		For the Three Months Ended March 31, 2011		% Leased

Leased Square Feet as of December 31, 2010	12,214,356		82.4	%	9,846,572		81.8		%
Expirations	(319,411	)	(2.2	)%	(221,412	)	(1.9		)%
New Leases	42,912		0.3	%	30,510		0.2		%
Renewals	205,277		1.4	%	116,038		1.0		%
Leased Square Feet as of March 31, 2011	12,143,134		81.9	%	9,771,708		81.1		%


Cash Rent Growth (2), (3)
Expiring Rate per Square Foot							$	23.93
New / Renewed Rate per Square Foot							$	15.74
Percentage Change							(34.2		)%

GAAP Rent Growth (3), (4)
Expiring Rate per Square Foot							$	22.28
New / Renewed Rate per Square Foot							$	16.22
Percentage Change							(27.2		)%

Weighted Average Lease Term – New (in months)							68
Weighted Average Lease Term – Renewal (in months)							36

__________

(1) Includes 100% of our consolidated portfolio and 20% of our MMO joint venture properties.

(2) Represents the difference between (i) initial market rents on new and renewed leases and (ii) the cash rents on those spaces immediately prior to the expiration or termination.

(3) Excludes new and renewed leases for spaces with more than twelve months of downtime and early renewals commencing after March 31, 2012.

(4) Represents estimated cash rent growth adjusted for straight-line rents in accordance with GAAP.

Table of Contents

MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011





Leasing Activity — Los Angeles Central Business District



	Total Portfolio				Effective Portfolio (1)
	For the Three Months Ended March 31, 2011		% Leased		For the Three Months Ended March 31, 2011		% Leased

Leased Square Feet as of December 31, 2010	7,648,520		82.6	%	7,021,478		83.2		%
Expirations	(54,581	)	(0.6	)%	(54,581	)	(0.6		)%
New Leases	27,197		0.3	%	22,765		0.3		%
Renewals	13,679		0.1	%	13,679		0.1		%
Leased Square Feet as of March 31, 2011	7,634,815		82.4	%	7,003,341		83.0		%

Cash Rent Growth (2), (3)
Expiring Rate per Square Foot							$	38.23
New / Renewed Rate per Square Foot							$	32.21
Percentage Change							(15.7		)%

GAAP Rent Growth (3), (4)
Expiring Rate per Square Foot							$	36.87
New / Renewed Rate per Square Foot							$	34.62
Percentage Change							(6.1		)%

Weighted Average Lease Term – New (in months)							68
Weighted Average Lease Term – Renewal (in months)							49

__________

(1) Includes 100% of our consolidated portfolio and 20% of our MMO joint venture properties.

(2) Represents the difference between (i) initial market rents on new and renewed leases and (ii) the cash rents on those spaces immediately prior to the expiration or termination.

(3) Excludes new and renewed leases for spaces with more than twelve months of downtime and early renewals commencing after March 31, 2012.

(4) Represents estimated cash rent growth adjusted for straight-line rents in accordance with GAAP.

Table of Contents

MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011





Leasing Activity — Orange County



	Total Portfolio				Effective Portfolio (1)
	For the Three Months Ended March 31, 2011		% Leased		For the Three Months Ended March 31, 2011		% Leased

Leased Square Feet as of December 31, 2010	1,572,882		70.1	%	1,415,403		69.9		%
Expirations	(127,372	)	(5.7	)%	(127,372	)	(6.3		)%
New Leases	534		0.1	%	534		—		%
Renewals	78,951		3.5	%	78,951		3.9		%
Leased Square Feet as of March 31, 2011	1,524,995		68.0	%	1,367,516		67.5		%


Cash Rent Growth (2), (3)
Expiring Rate per Square Foot							$	23.48
New / Renewed Rate per Square Foot							$	11.14
Percentage Change							(52.6		)%

GAAP Rent Growth (3), (4)
Expiring Rate per Square Foot							$	21.49
New / Renewed Rate per Square Foot							$	11.31
Percentage Change							(47.4		)%

Weighted Average Lease Term – New (in months)							36
Weighted Average Lease Term – Renewal (in months)							40

__________

(1) Includes 100% of our consolidated portfolio and 20% of our MMO joint venture properties.

(2) Represents the difference between (i) initial market rents on new and renewed leases and (ii) the cash rents on those spaces immediately prior to the expiration or termination.

(3) Excludes new and renewed leases for spaces with more than twelve months of downtime and early renewals commencing after March 31, 2012.

(4) Represents estimated cash rent growth adjusted for straight-line rents in accordance with GAAP.

Table of Contents

MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011





Tenant Improvements and Leasing Commissions (Excluding Properties in Default) (1), (2), (3)



	For the Three Months Ended		For the Year Ended December 31,
	March 31, 2011		2010		2009		2008
Renewals (4)
Number of leases	12		46		79		130
Square feet	52,109		913,468		554,506		664,524
Tenant improvement costs per square foot (5)	$	2.77	$	20.95	$	9.09	$	13.95
Leasing commission costs per square foot	$	4.37	$	11.06	$	6.11	$	5.53
Total tenant improvements and leasing commissions
Costs per square foot	$	7.14	$	32.01	$	15.20	$	19.48
Costs per square foot per year	$	2.15	$	3.42	$	2.60	$	4.36

New/Modified Leases (6)
Number of leases	9		64		83		163
Square feet	28,422		607,565		617,522		1,115,055
Tenant improvement costs per square foot (5)	$	17.31	$	10.09	$	19.36	$	41.97
Leasing commission costs per square foot	$	10.06	$	6.36	$	6.19	$	10.11
Total tenant improvements and leasing commissions
Costs per square foot	$	27.37	$	16.45	$	25.55	$	52.08
Costs per square foot per year	$	4.54	$	3.07	$	3.73	$	5.98

Total
Number of leases	21		110		162		293
Square feet	80,531		1,521,033		1,172,028		1,779,579
Tenant improvement costs per square foot (5)	$	7.90	$	16.61	$	14.50	$	31.51
Leasing commission costs per square foot	$	6.38	$	9.18	$	6.15	$	8.40
Total tenant improvements and leasing commissions
Costs per square foot	$	14.28	$	25.79	$	20.65	$	39.91
Costs per square foot per year	$	3.34	$	3.32	$	3.24	$	5.60

__________


(1)	Excludes activity related to Properties in Default for the three months ended March 31, 2011, the year ended December 31, 2010 and the three months ended September 30 and December 31, 2009.


(2)	Based on leases executed during the period. Excludes leases to related parties, short-term leases less than six months, and leases for raw space.


(3)	Tenant improvement and leasing commission information reflects 100% of the consolidated portfolio and 20% of the MMO joint venture properties.


(4)	Does not include retained tenants that have relocated to new space or expanded into new space.


(5)	Tenant improvements include improvements and lease concessions.


(6)	Includes retained tenants that have relocated or expanded into new space and lease modifications.

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MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011





Historical Capital Expenditures — Office Properties (1)



	For the Three Months Ended		For the Year Ended December 31,
	March 31, 2011		2010		2009		2008
Consolidated
Non-recoverable capital expenditures (2)	$	148,628	$	1,261,014	$	2,952,146	$	10,571,743
Total square feet	11,345,771		11,345,392		12,956,305		15,498,637
Non-recoverable capital expenditures per square foot	$	0.01	$	0.11	$	0.23	$	0.68

Unconsolidated
Non-recoverable capital expenditures (3)	$	118,070	$	293,578	$	295,925	$	220,946
Total square feet (4)	630,671		630,699		710,922		635,670
Non-recoverable capital expenditures per square foot	$	0.19	$	0.47	$	0.42	$	0.35

Consolidated
Recoverable capital expenditures (5)	$	362,555	$	2,461,255	$	1,388,207	$	1,197,266
Total square feet	11,345,771		11,345,392		12,956,305		15,498,637
Recoverable capital expenditures per square foot	$	0.03	$	0.22	$	0.11	$	0.08

Unconsolidated
Recoverable capital expenditures (3), (5)	$	—	$	12,282	$	18,610	$	30,524
Total square feet (4)	630,671		630,699		710,922		635,670
Recoverable capital expenditures per square foot	$	—	$	0.02	$	0.03	$	0.05

_________


(1)	Historical capital expenditures for each period shown reflect properties owned for the entire period. For properties sold during each period, the capital expenditures will be excluded for that period. Any capital expenditures incurred during the period of disposition will be footnoted separately.


(2)	For 2008, excludes $6.4 million of non-recoverable capital expenditures as a result of discretionary renovation costs of $6.1 million at KPMG Tower and $0.3 million of planned renovation costs at Lantana Media Campus.


(3)	Amount represents our 20% ownership interest in our MMO joint venture.


(4)	The square footage of Cerritos Corporate Center Phases I and II is deducted from the total square feet amount as the tenants pay for all capital expenditures.


(5)	Recoverable capital improvements, such as equipment upgrades, are generally financed through capital leases. The annual amortization, based on each asset’s useful life, as well as any financing costs, are generally billed to tenants on an annual basis as payments are made. The amounts presented represent the total value of the improvements in the year they are made.

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MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011





Hotel Performance and Hotel Historical Capital Expenditures

Hotel Performance



	For the Three Months Ended March 31,
Westin^® Hotel, Pasadena, CA	2011			2010			Percent Change

Occupancy	73.4		%	71.7		%	2.4	%

Average daily rate	$	154.97		$	160.85		(3.7	)%

Revenue per available room (REVPAR)	$	113.82		$	115.25		(1.2	)%

Hotel net operating income	$	1,415,405		$	1,489,843		(5.0	)%

Hotel Historical Capital Expenditures



	For the Three Months Ended March 31,						For the Year Ended December 31,
Westin^® Hotel, Pasadena, CA	2011			2010			2010			2009			2008

Hotel improvements and equipment replacement	$	775,856		$	67,843		$	874,246		$	1,003,384		$	699,531

Total hotel revenue	$	4,988,200		$	5,236,713		$	20,662,203		$	20,622,570		$	26,615,726

Hotel improvements as a percentage of hotel revenue	15.6		%	1.3		%	4.2		%	4.9		%	2.6		%

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MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011





Development Properties



		As of March 31, 2011
	Location	Developable Square Feet (1)	Structured Parking Square Feet	Type of Planned Development
Development Properties
Los Angeles County
755 South Figueroa	Los Angeles, CA	930,000	266,000	Office
Glendale Center – Phase II	Glendale, CA	264,000	158,000	Mixed Use
Total Los Angeles County		1,194,000	424,000

Orange County
Brea Financial Commons/Brea Corporate Place (2)	Brea, CA	550,000	784,000	Office, Mixed Use
City Tower II (3)	Orange, CA	465,000	696,000	Office
Total Orange County		1,015,000	1,480,000

San Diego County
San Diego Tech Center (4), (5)	Sorrento Mesa, CA	1,320,000	1,674,000	Office
Total		3,529,000	3,578,000

Development Properties Encumbered by Defaulted Mortgages
Orange County
2600 Michelson (6)	Irvine, CA	270,000	154,000	Office
Stadium Tower II (7)	Anaheim, CA	282,000	367,000	Office
Total		552,000	521,000

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MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011





Development Properties (continued)

__________


(1)	The developable square feet presented represents the office, retail, hotel and residential footages that we estimate can be developed on the referenced property.


(2)	The developable square feet presented represents management’s estimate of the development potential for the referenced property based on the allowed density under current zoning and capacity considerations for the site still under planning review.


(3)	The developable square feet presented represents management’s estimate of the development potential for the referenced property based on the allowed density under a Conditional Use Permit obtained for the property in 2001, which has since expired.


(4)	Land held for development was not contributed to our joint venture with Charter Hall Group.


(5)	The third phase contemplates the demolition of 120,000 square feet of existing space.


(6)	This development site is currently in receivership, along with the 2600 Michelson office building.


(7)	This development site is currently in receivership, along with the Stadium Towers Plaza office building.

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MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011





Management Statements on Non-GAAP Supplemental Measures

Funds from Operations:

Fund from Operations, or FFO, is a widely recognized measure of REIT performance. We calculate FFO as defined by the National Association of Real Estate Investment Trusts, or NAREIT. FFO represents net income or loss (as computed in accordance with U.S. generally accepted accounting principles, or GAAP), excluding gains from disposition of property (but including impairments and provisions for losses on property held for sale), plus real estate-related depreciation and amortization (including capitalized leasing costs and tenant allowances or improvements). Adjustments for our unconsolidated joint venture are calculated to reflect FFO on the same basis.

Management uses FFO as a supplemental performance measure because, in excluding real estate-related depreciation and amortization and gains from property dispositions, it provides a performance measure that, when compared year over year, captures trends in occupancy rates, rental rates and operating costs. We also believe that, as a widely recognized measure of the performance of REITs, FFO will be used by investors as a basis to compare our operating performance with that of other REITs.

However, because FFO excludes depreciation and amortization and captures neither the changes in the value of our properties that result from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effect and could materially impact our results of operations, the utility of FFO as a measure of our performance is limited. Other Equity REITs may not calculate FFO in accordance with the NAREIT definition and, accordingly, our FFO may not be comparable to such other Equity REITs’ FFO. As a result, FFO should be considered only as a supplement to net income or loss as a measure of our performance. FFO should not be used as a measure of our liquidity, nor is it indicative of funds available to meet our cash needs, including our ability to pay dividends or make distributions. FFO also should not be used as a supplement to or substitute for cash flows from operating activities (as computed in accordance with GAAP).

FFO before specified items:

Management also uses FFO before specified items as a supplemental performance measure because losses from early extinguishment of debt, default interest, the impairment of long-lived assets and gains on settlement of debt create significant earnings volatility which in turn results in less comparability between reporting periods and less predictability regarding future earnings potential.

Losses from early extinguishment of debt represent costs to extinguish debt prior to the stated maturity and the writeoff of unamortized loan costs on the date of extinguishment. The decision to extinguish debt prior to its maturity generally results from (i) the assumption of debt in connection with property acquisitions that is priced or structured at less than desirable terms (for example, a variable interest rate instead of a fixed interest rate), (ii) short-term bridge financing obtained in connection with the acquisition of a property or portfolio of properties until such time as the company completes its long-term financing strategy, (iii) the early repayment of debt associated with properties disposed of, or (iv) the restructuring or replacement of property or corporate-level financing to accommodate property acquisitions. Consequently, management views these losses as costs to complete the respective acquisition or disposition of properties.

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MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011





Management Statements on Non-GAAP Supplemental Measures (continued)

FFO before specified items: (continued)

As of March 31, 2011, the mortgage loans on the following properties were in default: Stadium Towers Plaza, 500 Orange Tower and City Tower in Central Orange County, 2600 Michelson in Irvine, and 550 South Hope and Two California Plaza in Downtown Los Angeles. We are accruing interest on the defaulted mortgage loans at the default rate per the applicable loan agreements. We have excluded default interest accrued on mortgages in default as well as the writeoff of deferred financing costs related to the mortgage loans on these properties from the calculation of FFO before specified items since these charges are a direct result of management’s decision to dispose of property other than by sale or modify the loan (in the case of Two California Plaza). Management views these charges as costs to complete the disposition of the related properties or the modification of the loan.

Impairment of long-lived assets represents charges taken to write down depreciable real estate assets to estimated fair value when events or changes in circumstances indicate that the carrying amount may not be recoverable. In some instances, the disposition of properties impaired in prior periods may result in a gain on settlement of debt at the time of disposition. Per the NAREIT definition of FFO, gains from property dispositions are excluded from the calculation of FFO; however, impairment losses are required to be included. Management excludes gains from property dispositions, impairment losses and gains on settlement of debt from the calculation of FFO before specified items because they relate to the financial statement impact of decisions made to dispose of property, whether in the period of disposition or in advance of disposition. These types of gains or losses create volatility in our earnings and make it difficult for investors to determine the funds generated by our ongoing business operations.

Adjusted Funds from Operations:

We calculate adjusted funds from operations, or AFFO, by adding to or subtracting from FFO (i) non-cash operating revenues and expenses, (ii) capitalized operating expenditures such as leasing and development payroll and interest expense, (iii) recurring and non-recurring capital expenditures required to maintain and re-tenant our properties, (iv) regular principal payments required to service our debt, and (v) 2nd generation tenant improvements and leasing commissions. Management uses AFFO as a supplemental liquidity measure because, when compared year over year, it assesses our ability to fund our dividend and distribution requirements from our operating activities. We also believe that, as a widely recognized measure of the liquidity of REITs, AFFO will be used by investors as a basis to assess our ability to fund dividend payments in comparison to other REITs.

However, because AFFO may exclude certain non-recurring capital expenditures and leasing costs, the utility of AFFO as a measure of our liquidity is limited. Additionally, other Equity REITs may not calculate AFFO using the method we do. As a result, our AFFO may not be comparable to such other Equity REITs’ AFFO. AFFO should be considered only as a supplement to cash flows from operating activities (as computed in accordance with GAAP) as a measure of our liquidity.

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MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011





Management Statements on Non-GAAP Supplemental Measures (continued)

EBITDA:

Management uses EBITDA as an indicator of our ability to incur and service debt. We believe EBITDA is an appropriate supplemental measure for such purposes, because the amounts spent on interest are, by definition, available to pay interest, income tax expense is inversely correlated to interest expense because tax expense goes down as deductible interest expense goes up, and depreciation and amortization are non-cash charges. In addition, we believe EBITDA is frequently used by securities analysts, investors and other interested parties in the evaluation of Equity REITs. However, because EBITDA is calculated before recurring cash charges including interest expense and income taxes, and is not adjusted for capital expenditures or other recurring cash requirements of our business, its utility as a measure of our liquidity is limited. Accordingly, EBITDA should not be considered an alternative to cash flows from operating activities (as computed in accordance with GAAP) as a measure of our liquidity. EBITDA should not be considered as an alternative to net (loss) income as an indicator of our operating performance. Other Equity REITs may calculate EBITDA differently than we do; accordingly, our EBITDA may not be comparable to such other Equity REITs’ EBITDA.

Adjusted EBITDA:

Management also uses Adjusted EBITDA as a supplemental performance measure because losses from early extinguishment of debt, the impairment of long-lived assets and gains on settlement of debt create significant earnings volatility which in turn results in less comparability between reporting periods and less predictability regarding future earnings potential.

Impairment of long-lived assets represents charges taken to write down depreciable real estate assets to estimated fair value when events or changes in circumstances indicate that the carrying amount may not be recoverable. In some instances, the disposition of properties impaired in prior periods may result in a gain on settlement of debt at the time of disposition. Management excludes gains from property dispositions, impairment losses and gains on settlement of debt from the calculation of Adjusted EBITDA because they relate to the financial statement impact of decisions made to dispose of property, whether in the period of disposition or in advance of disposition. These types of gains or losses create volatility in our earnings and make it difficult for investors to determine the earnings generated by our ongoing business operations.

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MPG Office Trust, Inc.

Supplemental Operating and Financial Data

First Quarter 2011





Management Statements on Non-GAAP Supplemental Measures (continued)

Coverage Ratios:

We present interest and fixed charge coverage ratios as supplemental liquidity measures. Management uses these ratios as indicators of our financial flexibility to service current interest expense and debt amortization from current cash net operating income. In addition, we believe that these coverage ratios represent common metrics used by securities analysts, investors and other interested parties to evaluate our ability to service fixed cash payments. However, because these ratios are derived from EBITDA, their utility is limited by the same factors that limit the usefulness of EBITDA as a liquidity measure. Accordingly, our interest coverage ratio should not be considered as an alternative to cash flows from operating activities (as computed in accordance with GAAP) as a measure of our liquidity.

MPG Office Trust, Inc. - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - May 9, 2011

Attached files

MPG Office Trust, Inc. Reports