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1
PARKWAY, INC.
INVESTOR PRESENTATION
June 2017
2
FORWARD-LOOKING STATEMENTS
Certain statements contained in this presentation, including those that express a belief, expectation or intention, as well as those that are not statements of
historical fact, are forward-looking statements within the meaning of the federal securities laws and as such are based upon Parkway, Inc.’s (“Parkway,” “PKY,” the
“Company,” “we,” “our” or “us”) current beliefs as to the outcome and timing of future events. There can be no assurance that actual future developments affecting
the Company will be those anticipated by the Company. Examples of forward-looking statements include projected capital resources, projected profitability and
portfolio performance, estimates of market rental rates, projected capital improvements, expected sources of financing, expectations as to the timing of closing of
acquisitions, dispositions, or other transactions, the expected operating performance of anticipated near-term acquisitions and descriptions relating to these
expectations, including without limitation, the anticipated net operating income (“NOI”) yield. We caution investors that any forward-looking statements presented in
this presentation are based on management’s beliefs and assumptions made by, and information currently available to, management. When used, the words
“anticipate,” “assume,” “believe,” “estimate,” “expect,” “forecast,” “guidance,” “intend,” “may,” “might,” “outlook,” “project,” “should” or similar expressions that do not
relate solely to historical matters are intended to identify forward-looking statements. You can also identify forward-looking statements by discussions of strategy,
plans or intentions. Forward-looking statements involve risks and uncertainties (some of which are beyond the Company’s control) and are subject to change based
upon various factors, including but not limited to the following risks and uncertainties: our short operating history as an independent company; conditions associated
with our primary market, including an oversupply of office space, customer financial difficulties and general economic conditions; that certain of our properties
represent a significant portion of our revenues and costs; that the Spin-Off from Cousins Properties Incorporated (“Cousins” or “CUZ”) will not qualify for tax-free
treatment; our ability to meet mortgage debt obligations on certain of our properties; the availability of refinancing current debt obligations; joint ventures and
potential co-investments with third parties; changes in any credit rating we may obtain; changes in the real estate industry and in performance of the financial
markets and interest rates and our ability to effectively hedge against interest rate changes; the actual or perceived impact of global and economic conditions;
declines in commodity prices, which may negatively impact the Houston, Texas market; the concentration of our customers in the energy sector; that a significant
portion of our revenue comes from our top 20 customers; the demand for and market acceptance of our properties for rental purposes; our ability to enter into new
leases or renewal leases on favorable terms; the potential for termination of existing leases pursuant to customer termination rights; the amount, growth and relative
inelasticity of our expenses; risks associated with the ownership and development of real property; termination of property management contracts; the bankruptcy
or insolvency of companies for which we provide property management services or the sale of these properties; the outcome of claims and litigation involving or
affecting the Company; the ability to satisfy conditions necessary to close pending transactions and the ability to successfully integrate the assets and related
operations acquired in such transactions after closing; applicable regulatory changes; risks associated with acquisitions, including the integration of the portion of
the combined business of Parkway Properties, Inc. (“Legacy Parkway”) and Cousins relating to the ownership of real properties in Houston and Legacy Parkway’s
fee-based real estate business; risks associated with the fact that our historical and predecessors' financial information may not be a reliable indicator of our future
results; risks associated with achieving expected synergies or cost savings; risks associated with the potential volatility of our common stock; and other risks and
uncertainties detailed from time to time in our Securities and Exchange Commission filings.
Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, the Company’s business, financial condition, liquidity,
cash flows and results could differ materially from those expressed in any forward-looking statement. While forward-looking statements reflect our good faith beliefs,
they are not guarantees of future performance. Any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise
overtime, and it is not possible for us to predict the occurrence of those matters or the manner in which they may affect us. We disclaim any obligation to publicly
update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other
changes. Accordingly, investors should use caution in relying on past forward-looking statements, which were based on results and trends at the time they were
made, to anticipate future results or trends.
3
PARKWAY’S STRATEGY
Focused on Creating Value
• Experienced management team with a demonstrated track record of acquiring, operating and
repositioning assets and managing a public office REIT
Strategically Manage Operations and Capital Investments in Existing Buildings
• Focus on revenue-enhancing capital investments within existing portfolio that help to improve efficiency,
add vibrancy to common areas of properties, and provide additional amenities to customers
• Proactively identify shifting customer needs and attract new, high-quality customers
Pursue Opportunistic Capital Reallocations While Maintaining Conservative and Flexible
Balance Sheet
• Continue to maintain low leverage and a conservative balance sheet
• Use extensive network of long-standing relationships with leading local and regional industry participants
to identify and capitalize on internal and external value-creation opportunities as well as identify
opportunities with potential joint venture partners, such as the Greenway joint venture (the “Greenway
JV”)
• Monetize investments as local markets recover
HOUSTON MARKET OVERVIEW
5
HOUSTON MARKET OVERVIEW
Did You Know? 1,2,3
#1
Population Growth
2010 - 2016
#1
Import / Export
Waterborne Tonnage
#3
Fortune 500 HQs
4th
Largest U.S. Metro
Economy
Largest
Medical Complex in the
World
1. Source: U.S. Bureau of Economic Analysis, for year ended December 31, 2015.
2. Source: U.S. Census Bureau.
3. Source: Greater Houston Partnership.
4. Source: HFF Houston Office Bluesheet, 1Q 2017.
Diverse economy with strong demographic trends1,2,3
− 4th largest U.S. metro economy; would rank as 26th largest economy in the
world based on countries
− 4th most populous city in the U.S. with approximately 2.3 million people
located in the city and 6.7 million in the Houston MSA
− 24 Fortune 500 companies are located in Houston
− Home to Texas Medical Center, which is the world’s largest medical complex
and includes a children’s hospital and cancer center
− Per capita personal income of $54,346, which is above national levels
− Houston region has no racial or ethnic majority
Gateway office market4
− 141M sq. ft. in 464 Class-A office buildings (26% of total inventory located in
Parkway’s submarkets)
− ~$33 per sq. ft. average gross rents for Class A properties
− 81.3% occupancy for Class A properties as of 3/31/17
6
HOUSTON’S GROSS DOMESTIC PRODUCT
Source: U.S. Bureau of Economic Analysis, for year ended December 31, 2015.
Rank Metro Area GDP (In Billions)
1 New York $1,602.7
2 Los Angeles 930.8
3 Chicago 640.7
4 Houston 503.3
5 Washington, D.C. 491.0
6 Dallas-Fort Worth 485.7
7 San Francisco 431.7
8 Philadelphia 411.2
9 Boston 396.5
10 Atlanta 339.2
7
HOUSTON’S GROSS DOMESTIC PRODUCT
Source: U.S. Bureau of Economic Analysis
$352.0
$391.9
$415.1
$374.1
$401.1
$441.2
$469.9
$504.7
$522.0
$503.3
0
100
200
300
400
500
600
'06 '07 '08 '09 '10 '11 '12 '13 '14 '15
Metro Houston’s GDP by Year
Amounts in Billions
8
HOUSTON’S GROSS DOMESTIC PRODUCT
Source: U.S. Bureau of Economic Analysis and Greater Houston Partnership Calculations for the year ended December 31, 2015.
Metro Houston’s GDP Composition
Manufacturing, 16.9%
Finance, Insurance,
Real Estate, Rental, and
Leasing, 13.0%
Professional and
Business Services,
12.7%
Mining, 12.6%
Government, 6.7%
Construction, 5.9%
Educational Services,
Health Care, and Social
Assistance, 4.9%
Retail Trade, 4.5%
Utilities, 3.1%
Arts, Entertainment,
Recreation,
Accommodation, and
Food Services, 2.8%
All Others, 16.9%
9
HISTORIC OIL PRICES
Source: U.S. Energy Information Administration, as of May 30, 2017.
Weekly Cushing, OK WTI Spot Price FOB
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
$80.00
$90.00
$100.00
$110.00
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$
Pe
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No Significant Improvement
Over Past 12 Months
10
HISTORIC RIG COUNTS
Source: Baker Hughes as of 6/2/17.
Total U.S. Rig Count
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
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Working rig count has increased since May 2016, but
still 47% below 2014 peak
11
HOUSTON JOB GROWTH BY INDUSTRY
Source: Bureau of Labor Statistics as of April 30, 2017.
Houston MSA’s 12-Month Net Change in Employment
-150.0
-100.0
-50.0
0.0
50.0
100.0
150.0
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12
Houston Class-A Office Vacancy and Sublease Space by Submarket
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
CBD Energy
Corridor
Galleria Greenspoint Westchase Greenway The
Woodlands
West Belt Katy
Freeway
Med Ctr /
Bellaire
Sugar Land FM 1960 North Loop
Class A Direct Class A Sublease
HOUSTON VACANCY AND SUBLEASE AVAILABILITY
Source: HFF Houston Office Bluesheet 1Q 2017.
CURRENT VACANCY COMBINED WITH SUBLEASE SPACE ON THE MARKET HAS INCREASED OVERALL
HOUSTON AVAILABILITY TO APPROXIMATELY 23%
21% 31% 27% 74% 31% 23% 14% 34% 18% 12% 14% 11% 31%
Total Available
as % Of Total
Class-A
Inventory
Parkway Submarkets
Class-A Sublease SF: 9.0 MM
Total Sublease SF: 11.1 MM
13
HOUSTON OFFICE FUNDAMENTALS
Source: CoStar Office Quarterly Market Reports (Houston) Q1 2017
Class-A Asking Rents have declined 3.5% since 1Q 2016 and 4.0%
since the peak in 2Q 2015. Houston overall asking rents have
declined 1.8% since 1Q 2016.
Class-A Asking Rents
Houston Overall Asking Rents
Both Class-A and Houston overall have seen a decline in net
absorption and an increase in vacancy.
Houston Overall Vacancy and Net Absorption
Class-A Vacancy and Net Absorption
Asking Rental Rates Vacancy and Net Absorption
$34.54 $34.45 $34.36 $34.35
$33.97
$33.75
$33.26 $33.14
2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17
12%
14%
16%
18%
20%
(500,000)
0
500,000
1,000,000
1,500,000
2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17
Absorption Vac %
$27.94
$28.00
$28.09 $28.06
$27.70 $27.69
$27.52 $27.56
2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17
11%
13%
15%
17%
(1,000,000)
(500,000)
0
500,000
1,000,000
2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17
Absorption Vac %
PARKWAY PORTFOLIO OVERVIEW
15
PORTFOLIO SUMMARY
ASSET BREAKDOWN BY SF1
Assets 5
Buildings 19
Rentable Square Feet 8.7 MM
% Leased1 87.6%
Sustainability All properties LEED certified
Wtd. Avg. Net In-Place
Rents1 $20.13
Mark-to-Market1 +0.4%
1. As of 3/31/17.
CLASS-A PROPERTIES WITH STATE-OF-THE-ART AMENITIES AND UNIQUE FEATURES DESIGNED TO
ATTRACT A BROAD RANGE OF HIGH-QUALITY CUSTOMERS
KEY STATISTICS
Post Oak
Central, 15%
San Felipe
Plaza, 11%
Greenway
Plaza, 50%
Phoenix
Tower, 7%
CityWest
Place, 17%
LOCATED IN THRIVING NEIGHBORHOODS WITHIN ATTRACTIVE SUBMARKETS IN HOUSTON
16
LIMITED NEAR-TERM LEASE EXPIRATIONS
MINIMAL NEAR-TERM EXPIRATIONS WITH POSITIVE MARK-TO-MARKET STILL ESTIMATED FOR
LEASES EXPIRING OVER THE NEXT THREE YEARS
Source: Internal data as of 3/31/17.
Wtd. Avg. Wtd. Avg.
In-Place Market
% of Total Number of Net Rental Net Rental Mark-to-
Year Occupied SF Occupied SF Leases Rate Per SF Rate Per SF Market
2017 406 5.4% 103 $17.19 $19.87 15.6%
2018 499 6.7% 67 19.37 19.51 0.7%
2019 1,040 14.0% 55 20.00 20.47 2.3%
2020 607 8.1% 68 20.38 20.09 -1.4%
2021 449 6.0% 42 19.91 20.38 2.3%
2022 462 6.2% 46 19.10 19.25 0.8%
2023 1,239 16.6% 22 19.20 19.58 2.0%
2024 337 4.5% 20 16.50 19.02 15.3%
2025 460 6.2% 8 23.44 21.51 -8.2%
2026 1,284 17.2% 12 20.77 20.45 -1.6%
Thereafter 674 9.0% 9 23.32 21.70 -6.9%
Totals / Wtd. Avg. 7,457 100.0% 452 $20.13 $20.22 0.4%
17
STRONG CREDITWORTHY CUSTOMERS
Source: Internal data as of 3/31/17.
1. In some cases, the actual tenant may be an affiliate or subsidiary of the customer shown.
Wtd. Avg. Annualized % of Annualized
Lease Occupied SF % of Net Rent ($) Annualized Net Rent Per
Customer (1) Industry Term (in 000s) RSF (in 000s) Net Rent Occupied SF
1 Occidental Oil & Gas Corporation Energy 9.8 938.6 12.6% $19,902 13.3% $21.20
2 Statoil Gulf Services, LLC Energy 15.4 507.4 6.8% 12,300 8.2% 24.24
3 Apache Corporation Energy 2.8 524.3 7.0% 9,588 6.4% 18.29
4 Invesco Management Group, Inc Finance 6.8 391.0 5.2% 6,688 4.5% 17.11
5 Transocean Offshore Deepwater Drilling, Inc. Energy 5.8 255.4 3.4% 5,169 3.4% 20.24
6 Stewart Information Services Corporation Finance 2.5 182.9 2.5% 4,737 3.2% 25.90
7 Ion Geophysical Corporation Energy 6.5 176.3 2.4% 4,466 3.0% 25.32
8 BMC Software, Inc. Technology 9.2 216.2 2.9% 3,708 2.5% 17.15
9 Bristow Group Inc. Transportation 7.8 114.9 1.5% 3,678 2.5% 32.00
10 ENSCO International Incorporated Energy 8.7 166.8 2.2% 3,417 2.3% 20.48
11 CPL Retail Energy Energy 6.2 201.6 2.7% 3,269 2.2% 16.22
12 Nalco Company Energy 0.9 130.1 1.7% 2,380 1.6% 18.29
13 Engie Holdings Inc. Energy 3.1 134.6 1.8% 2,159 1.4% 16.04
14 Raymond James & Associates, Inc. Legal 4.6 96.5 1.3% 2,024 1.3% 20.98
15 Camden Property Trust Finance 8.5 86.7 1.2% 1,764 1.2% 20.34
16 Parker Drilling Mgmt. Services Energy 4.5 86.9 1.2% 1,596 1.1% 18.37
17 W & T Offshore, LLC Energy 5.6 82.9 1.1% 1,434 1.0% 17.29
18 Regus Equity Business Centers, LLC Professional 4.1 71.1 1.0% 1,419 0.9% 19.96
19 Houston Series of Lockton Companies, LLC Insurance 0.8 83.7 1.1% 1,309 0.9% 15.63
20 Sheridan Production Company LLC Energy 3.2 71.2 1.0% 1,293 0.9% 18.17
Totals / Wtd. Avg. 4,519 60.6% $92,301 61.5% $20.42
Portfolio Top 20 Customers
18
CONSERVATIVE & FLEXIBLE BALANCE SHEET COMPLEMENTS STAGGERED DEBT MATURITIES TO
FACILITATE STRATEGIC EXECUTION
STRONG AND FLEXIBLE BALANCE SHEET
FINANCIAL STRATEGY NET DEBT / ADJUSTED EBITDA1
PRO RATA DEBT MATURITIES (MM) 2
Scalable Platform
– Approximately $470 million of liquidity following the
Greenway JV
– No material near term debt maturities
Low Leverage Strategy
– 4.4x Net Debt / EBITDA, as of 1Q17
– 3.0x Net Debt / EBITDA pro forma for Greenway JV
Source: Public filings and Company financials and estimates.
1. Represents average debt as a multiple of EBITDA as of 3/31/17. Parkway defines Adjusted EBITDA as net income before interest expense, income taxes and depreciation and amortization.
2. As of 3/31/17 and pro forma for Greenway JV.
SUMMARY OF DEBT 2
$0.0
$105.6
$0.0
$265.7
$0.0
$275.9
$0.0
$50.0
$100.0
$150.0
$200.0
$250.0
$300.0
2017 2018 2019 2020 2021 2022+
Maturity
Date
Interest
Rate
Pro Rata
Outstanding
Balance
San Felipe Plaza 12/1/18 4.78% $ 105,623
CityWestPlace III & IV 3/5/20 5.03% 88,279
Post Oak Central 10/1/20 4.26% 177,391
Greenway Plaza 5/6/22 3.75% 237,150
Phoenix Tower 3/1/23 3.87% 38,786
Wtd. Avg. / Total 4.24% $ 647,229
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
6.0x
7.0x
8.0x
PKY PKY Post-
JV
CUZ CXP HIW TIER FSP
19
WELL-POSITIONED PORTFOLIO OF ICONIC PROPERTIES
Rentable SF: 1,473,000
Buildings: 4
% Leased: 77.3%
Submarket: Westchase
In-Place Rent /
Market Rent /
Mark-to-Mkt:
$24.14 /
$22.00 /
-8.9%
CityWestPlace San Felipe PlazaGreenway Plaza1 Post Oak Central
Rentable SF: 980,000
Buildings: 1
% Leased: 86.6%
Submarket: Galleria
In-Place Rent /
Market Rent /
Mark-to-Mkt :
$22.34 /
$23.00 /
+3.0%
Rentable SF: 4,952,000
Buildings: 11
% Leased: 89.1%
Submarket: Greenway
In-Place Rent /
Market Rent /
Mark-to-Mkt :
$18.69 /
$19.03 /
+1.8%
Rentable SF: 1,280,000
Buildings: 3
% Leased: 94.2%
Submarket: Galleria
In-Place Rent /
Market Rent /
Mark-to-Mkt:
$20.24 /
$21.00 /
+3.8%
Source: Internal data and estimates as of 3/31/17.
1. Greenway Plaza data includes Phoenix Tower.
20
ASSETS LOCATED IN SUBMARKETS ADJACENT TO HIGH-INCOME RESIDENTIAL AREAS
BEST LOCATIONS IN PREMIER HOUSTON SUBMARKETS
Source: U.S. Census Bureau (2014), CoStar.
CityWestPlace
San Felipe Plaza Post Oak Central
Phoenix Tower
Greenway Plaza
21
FIRST QUARTER 2017 LEASING AND OCCUPANCY
OCCUPANCY & LEASED PERCENTAGES AS OF 3/31/17
1. Amounts shown in thousands.
2. Greenway Plaza information includes Phoenix Tower.
3. Excludes the execution of an 89,000 square foot new lease with an affiliate of Life Time Fitness, Inc. at Greenway Plaza, which the Company recognizes as a retail lease.
1Q17 LEASING RESULTS3
Average rental rate on
renewal leases was
15.1% above average
expiring rental rate.
Total
Square Occupancy Leased
Property Market Submarket Feet1 Percentage Percentage
Greenway Plaza2 Houston Greenway 4,952 87.9% 89.1%
CityWestPlace Houston Westchase 1,473 72.5% 77.3%
Post Oak Central Houston Galleria 1,280 93.3% 94.2%
San Felipe Plaza Houston Galleria 980 86.0% 86.6%
Total Portfolio 8,685 85.9% 87.6%
Square Feet
Average Net
Rental Rate
Average
Term (Yrs)
Average
Leasing
Costs
($/SF/Yr)
New Leases 30,000 $20.84 4.1 $7.38
Renewal Leases 114,000 $20.43 5.1 $6.11
Expansion Leases 23,000 $19.70 7.8 $8.52
Total Leasing 167,000 $20.40 5.3 $6.78
22
PEAK TO CURRENT MARKET RENTAL RATES
1. Weighted average of highest reported Asking Rate for portfolio of assets since 1/1/14 per CoStar.
2. Company estimates as of 3/31/17.
Property
Peak Net Lease
Rate1
Current Market
Net Rate2 % Decline
Greenway Plaza $25.91 $19.03 -26.5%
CityWestPlace $32.92 $22.00 -33.2%
Post Oak Central $27.00 $21.00 -22.2%
San Felipe Plaza $27.49 $23.00 -16.3%
Weighted Average $27.44 $20.21 -26.3%
Property
Average In-
Place Net Rent2
Current Market
Net Rate2
% Mark-to-
Market
Greenway Plaza $18.69 $19.03 1.8%
CityWestPlace $24.14 $22.00 -8.9%
Post Oak Central $20.24 $21.00 3.8%
San Felipe Plaza $22.34 $23.00 3.0%
Weighted Average $20.13 $20.22 0.4%
23
NEAR-TERM MAJOR EXPIRATIONS
LEASE EXPIRATIONS >50,000 SF THROUGH 2019
Tenant Property Square Feet Expiration Status
Houston Series of Lockton Cos. San Felipe Plaza 84,000 12/31/2017 Vacate
Hercules Offshore Greenway Plaza 72,000 12/31/2017 Vacate
Nalco Greenway Plaza 130,000 2/28/2018 Vacate
Stewart Information Services Corp Post Oak Central 183,000 9/30/2019 Unknown
Apache Corp Post Oak Central 524,000 12/31/2019 Unknown
24
INVESTMENT HIGHLIGHTS
Dominant office landlord in Houston, which has Gateway office market characteristics
−Largest office landlord in Houston with approximately 8.7 million sq. ft.
−4th largest U.S. metro economy, with third largest density of Fortune 500 companies and a broad and diversified job
base1
Unique office portfolio within outperforming submarkets
−Consists of five Class-A assets located in three targeted submarkets
−Amenity rich locations surrounded by high-end retail, restaurants and entertainment options
−Conveniently located near high-income executive housing
−Minimal near-term lease expirations with weighted average remaining lease term of approximately 6.2 years
Focus on unlocking embedded growth and value opportunities
−Potential to increase occupancy, realize higher rents and operate portfolio more efficiently
−Proactively identify shifting customer needs and attract new, high-quality customers
−Assess development and redevelopment opportunities within the portfolio
−Take advantage of current and future market dislocation in Houston and capitalize early on emerging investment
opportunities
−Pursue opportunistic investments and monetize as local markets recover
Conservative and flexible balance sheet to position company for internal and external growth opportunities
−Low leverage strategy with no near-term debt maturities
−Approximately $470 million of liquidity following Greenway JV
Experienced leadership team with proven success of identifying attractive investment opportunities
−Proven track record of outperformance and focus on driving shareholder value
−In-depth market knowledge and extensive existing relationships with industry participants
1. Source: Greater Houston Partnership.
5847 San Felipe St, Suite 2200
Houston, TX 77057