Attached files
| file | filename |
|---|---|
| 8-K - 8-K - COLUMBIA PROPERTY TRUST, INC. | cxp8-k201802earnings.htm |
2017
Q4
Supplemental Information
Introduction
Executive Summary 3
Company Profile & Investor Contacts 4
Capitalization Analysis & Research Coverage 5
2018 Guidance 6
Financial Information
Consolidated Balance Sheet - GAAP 7
Elements of Pro-Rata Balance Sheet - CXP's Interest in Unconsolidated Joint Ventures 8
Consolidated Statements of Operations - GAAP 9
Elements of Pro-Rata Statement of Operations - CXP's Interest in Unconsolidated Joint Ventures 10
11
Net Operating Income 12
Third-Party Management Income 13
Capital Expenditure Summary 14
Debt Overview 15
Debt Covenant Compliance 16
Debt Maturities 17
Summary of Unconsolidated Joint Ventures 18
Operational & Portfolio Information
Key Operating Metrics 19
Property Overview - Gross Real Estate Assets, Net Operating Income & Annualized Lease Revenue 20
Property Overview - Square Feet & Occupancy 21
Occupancy Summary 22
Leasing Summary 23
Lease Expiration Schedule 24
Lease Expiration by Market 25
Top 20 Tenants & Tenant Industry Profile 26
Transaction Activity (1/1/15 - 2/15/18) 27 - 28
Additional Information
29
Reconciliation of Cash Flows From Operations to Adjusted Funds From Operations (AFFO) 29
30
30
31
32
Definitions 33
Forward Looking Statements:
Supplemental Information - Q4 2017 2
This supplemental package contains certain statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “may,” “will,”
“expect,” “intend,” “anticipate,” “estimate,” “believe,” “continue,” or other similar words. These forward-looking statements include information about possible or assumed
future results of the business and our financial condition, liquidity, results of operations, future plans, and objectives. They also include, among other things, statements regarding
subjects that are forward-looking by their nature, such as, our business and financial strategy; our 2018 guidance; our ability to obtain future financing; future acquisitions and
dispositions of operating assets; future repurchases of common stock; and market and industry trends. Readers are cautioned not to place undue reliance on these forward-
looking statements, which speak only as of the date this supplemental package is published, and which are subject to certain risks and uncertainties which could cause actual
results to differ materially from those projected or anticipated. These risks and uncertainties include, without limitation: general risks affecting the real estate industry (including,
without limitation, the inability to enter into or renew leases, dependence on tenants’ financial condition, and competition from other owners and operators of real estate);
adverse economic or real estate developments in the company’s target markets; risks associated with the availability and terms of financing, the use of debt to fund acquisitions,
and the ability to refinance indebtedness as it comes due; reductions in asset valuations and related impairment charges; risks associated with downturns in foreign, domestic and
local economies, changes in interest rates; potential liability for uninsured losses and environmental contamination; risks associated with joint ventures; risks associated with the
company’s potential failure to qualify as a REIT under the Internal Revenue Code of 1986, as amended, and possible adverse changes in tax and environmental laws; and risks
associated with the company’s dependence on key personnel whose continued service is not guaranteed. We do not intend to publicly update or revise any forward-looking
statements, whether as a result of new information, future events, or otherwise. For additional risks and uncertainties that would cause actual results to differ materially from
those presented in our forward-looking statements see our Annual Report on Form 10-K for the year ended December 31, 2017 and subsequently filed periodic reports.
On the Cover: New York.
Columbia Property Trust, Inc.
Table of Contents
Normalized Funds From Operations (NFFO) & Adjusted Funds From Operations (AFFO)
Reconciliation of Net Income to Normalized Funds From Operations (NFFO)
Reconciliation of Net Income to Net Operating Income (based on cash rents), and Same Store Net Operating Income (based on cash rents) - wholly-owned
properties
Reconciliation of Net Income to Net Operating Income (based on GAAP rents), and Same Store Net Operating Income (based on GAAP rents) - wholly-owned
properties
Reconciliation of Net Operating Income (based on GAAP rents) to Net Operating Income (based on cash rents)
Reconciliation of Funds From Operations (FFO) to Adjusted Funds From Operations (AFFO)
Columbia Property Trust, Inc.
Executive Summary
Supplemental Information – Q4 2017 3
Financial Results & Guidance:
For the fourth quarter of 2017, net loss per diluted share was $(0.01) (page 9) and Normalized FFO (NFFO)(1) per
diluted share was $0.32 (page 11), cash flows from operations were $14.8 million (page 29) and Adjusted FFO (AFFO) (1)
was $17.3 million (page 11).
For 2017, net income per diluted share was $1.45 (page 9) and NFFO per diluted share was $1.14 (page 11), cash flows
from operations were $61.9 million (page 29) and AFFO was $78.6 million (page 11).
We are issuing 2018 guidance for Net Income in a range of $2.68 to $2.73 per diluted share, and for NFFO in a range of
$1.41 to $1.46 per diluted share. See page 6 for more information regarding our guidance.
Over the next seven months, economic occupancy is expected to increase substantially from the current level of 82.9%
as new leases commence and free-rent burns off (page 21), resulting in same-store net operating income (NOI)(1)
growth, higher cash flows, and increased NFFO and AFFO.
Quarterly Highlights:
During 2017, we acquired $942.3 million of properties in New York and Washington, D.C., including the following
fourth quarter acquisitions (page 27):
- On October 11, 2017, we acquired a 55% interest in 1800 M Street in Washington, D.C. for $231.6 million, through
a joint venture.
- On October 11, 2017, we acquired 245-249 West 17th Street and 218 West 18th Street, both in New York, for $514.1
million.
- On November 28, 2017, we acquired 149 Madison Avenue in New York, for $87.7 million. We are planning to
redevelop this property.
On February 1, 2018, we sold an additional 22.5% interest in University Circle and 333 Market Street to Allianz, our joint
venture partner, for $235.3 million. These proceeds were used to pay down debt.
Our portfolio is now 96.2% leased (page 21). During the fourth quarter of 2017, we leased 1.3 million square feet (page
23), including a new twelve-year, 161,000-square-foot lease with Arby’s at Three Glenlake in Atlanta and an 824,000-
square-foot lease extension with Westinghouse at Cranberry Woods in Pittsburgh.
Capitalization:
On November 27, 2017, we closed on a $300.0 million, one-year unsecured bridge loan, which was used to repay line
of credit borrowings used to fund third and fourth quarter acquisitions (page 15). On February 2, 2018, the $300.0
million bridge loan was paid down to $180.0 million.
During 2017, we repurchased $57.6 million of our common stock (2.7 million shares at an average price of
$21.46/share). No shares were repurchased during the fourth quarter of 2017 (page 5).
For the fourth quarter of 2017, we paid dividends of $0.20 per share ($0.80 annualized), consistent with the first three
quarters of 2017 (page 5).
(1) For definitions and reconciliations of these non-GAAP financial metrics see pages 29 - 33.
Company Overview
Executive and Senior Management
E. Nelson Mills James A. Fleming
Chief Executive Officer, Executive Vice President
President and Director Chief Financial Officer
Linda M. Bolan David S. Dowdney Wendy W. Gill Kevin A. Hoover Amy C. Tabb
Senior Vice President Senior Vice President Senior Vice President Senior Vice President Senior Vice President
Property Management Leasing Corporate Operations Portfolio Management Business Development
and Sustainability Chief Accounting Officer and Transactions
Board of Directors
Carmen M. Bowser Charles R. Brown Richard W. Carpenter John L. Dixon David B. Henry
Independent Director Independent Director Independent Director Independent Director Independent Director
Chairman
Murray J. McCabe E. Nelson Mills Constance B. Moore Michael S. Robb George W. Sands
Independent Director Chief Executive Officer Independent Director Independent Director Independent Director
President
Thomas G. Wattles
Independent Director
Investor Relations Shareholder Services Corporate Counsel
James A. Fleming T 855-347-0042 (toll free) King & Spalding LLP
Executive Vice President & Chief Financial Officer F 816-701-7629 1180 Peachtree Street
T 404-465-2126 E shareholders@columbia.reit Atlanta, GA 30309
E Jim.Fleming@columbia.reit T 404-572-4600
www.kslaw.com
Matt Stover
Director - Finance & Investor Relations
T 404-465-2227
E Matt.Stover@columbia.reit
Supplemental Information - Q4 2017 4
Columbia Property Trust, Inc.
Company Profile & Investor Contacts
Columbia Property Trust (NYSE: CXP) owns and operates Class-A office buildings primarily in competitive CBD locations within high-barrier-to-entry
markets. As of December 31, 2017, our portfolio included 19 operating properties, of which 14 are wholly-owned and five are owned through
unconsolidated joint ventures, containing 9.2 million square feet, concentrated in New York, San Francisco, and Washington, D.C. Columbia carries
an investment-grade rating from both Moody's (Baa2 / Stable) and Standard & Poor's (BBB / Stable).
When evaluating the Company’s performance and capital resources, management considers the financial impact of investments held directly and
through unconsolidated joint ventures. This report includes financial and operational information for our wholly-owned investments and our
proportional interest in unconsolidated investments. We share control of the operations of the properties owned through unconsolidated joint
ventures, and recognize that proportional financial data may not depict all of the legal and economic implications of our interest in these joint
ventures.
For more information about Columbia, please visit our website at www.columbia.reit.
Unaudited ($ & shares in thousands except for per-share data and percentages)
12/31/2017 9/30/2017 6/30/2017 3/31/2017 12/31/2016
Common Stock Data
Weighted-Average Shares Outstanding - Basic 119,383 120,293 121,534 122,003 122,709
Weighted-Average Shares Outstanding - Diluted 119,841 120,529 121,909 122,329 122,855
High Closing Price $23.16 $22.63 $23.13 $23.43 $22.22
Low Closing Price $20.94 $20.62 $21.45 $21.20 $20.47
Average Closing Price $22.18 $21.53 $22.24 $22.30 $21.33
Closing Price (as of period end) $22.95 $21.77 $22.38 $22.25 $21.60
Dividends / Share (annualized) $0.80 $0.80 $0.80 $0.80 $1.20
Dividend Yield (annualized) (1) 3.5% 3.7% 3.6% 3.6% 5.6%
Common Shares Outstanding (1) 119,789 119,804 121,235 122,451 122,184
Market Value of Common Shares (1) $2,749,158 $2,608,133 $2,713,239 $2,724,535 $2,639,174
Total Market Capitalization (1) (2) $4,540,084 (3) $3,947,861 (3) $4,227,763 $4,240,481 $4,229,526
Common Stock Repurchases
Shares Purchased - 1,431 1,252 - 1,294
Weighted-Average Price Per Share - $21.02 $21.95 - $21.46
Total Value of Shares Purchased - $30,092 $27,470 - $27,769
Equity Research Coverage
BMO Capital Markets Inc. Evercore ISI Goldman Sachs JMP Securities
John P. Kim Sheila McGrath Andrew Rosivach Mitch Germain
212-885-4115 212-497-0882 212-902-2796 212-906-3546
Morgan Stanley SunTrust Robinson Humphrey
Vikram Malhotra Michael R. Lewis
212-761-7064 212-319-5659
Debt Research Coverage
J.P. Morgan Securities
Mark Streeter
212-834-5086
Rating Agencies
Moody's Investor Services Standard & Poor's
Lori Marks Fernanda Hernandez
212-553-1098 212-438-1347
(2) Market value of shares plus gross debt as of quarter end.
Supplemental Information - Q4 2017 5
Columbia Property Trust, Inc.
Capitalization Analysis & Research Coverage
Three Months Ended
(1) Based on closing price and ending shares for the last trading day of quarter.
(3) Excludes the $49 million mortgage note on 263 Shuman Boulevard, which matured in July 2017. The company is in the process of transferring the property to
the lender.
Unaudited
Per share Low High
Net Income $2.68 $2.73
Real Estate Depreciation & Amortization (1.27) (1.27)
Funds From Operations $1.41 $1.46
Normalized Funds From Operations $1.41 $1.46
2018 Portfolio Assumptions
l Same Store NOI - Cash 10% - 12%
l Leased percentage at year end: 94% - 96%
l G&A Expenses - corporate
l Weighted-average common shares outstanding - diluted: 120M
Supplemental Information - Q4 2017 6
NOTE: These estimates reflect management's view of current market conditions and incorporate certain economic and operational assumptions and projections.
This annual guidance includes the continued repositioning of the portfolio based on the above assumptions. Actual results could differ from these estimates. Note
that individual quarters may fluctuate on both a cash basis and a GAAP basis due to the timing of dispositions, lease commencements and expirations, the timing
of repairs and maintenance, capital expenditures, capital markets activities and one-time revenue or expense events. In addition, the Company's guidance is based
on information available to management as of the date of this release.
Columbia Property Trust, Inc.
2018 Guidance
Twelve Months Ending 12/31/2018
$33M - $35M
Investor Conference Call and Webcast:
The Company will host a conference call and live audio webcast, both open for the general public to hear, on Thursday,
February 15, 2018, at 5:00 p.m. ET to discuss financial results and business highlights. The number to call for this interactive
teleconference is (412) 542-4180. A replay of the conference call will be available through February 22, 2018, by dialing (877)
344-7529 and entering the confirmation number, 10115376. A webcast of the call will also be available at the company's
website, www.columbia.reit.
Columbia Property Trust, Inc.
Unaudited (in thousands)
12/31/2017 9/30/2017 6/30/2017 3/31/2017 12/31/2016
Assets:
Real estate assets, at cost:
Land 825,208$ 609,110$ 751,351$ 751,351$ 751,351$
Buildings and improvements 2,452,215 2,082,425 2,588,909 2,573,407 2,556,607
Buildings and improvements, accumulated depreciation (388,796) (377,795) (471,029) (455,392) (435,457)
Intangible lease asset 293,325 254,649 282,338 303,318 306,088
Intangible lease asset, accumulated amortization (94,065) (89,950) (99,910) (115,904) (112,777)
Construction in progress 44,742 49,255 49,069 36,278 36,188
Real estate assets held for sale - - - - 593,297
Real estate assets held for sale, accumulated depreciation - - - - (180,791)
Total real estate assets 3,132,629$ 2,527,694$ 3,100,728$ 3,093,058$ 3,514,506$
Investment in unconsolidated joint ventures (page 8) 943,242 698,105 125,584 126,691 127,346
Cash and cash equivalents 9,567 382,730 506,538 554,655 216,085
Tenant receivables, net of allowance for doubtful accounts 2,128 2,814 4,002 5,290 7,163
Straight line rent receivable 92,235 80,128 77,875 71,601 64,811
Prepaid expenses and other assets 27,683 75,802 39,815 40,647 24,275
Intangible lease origination costs 100,424 83,599 117,357 126,849 128,857
Intangible lease origination costs, accumulated amortization (57,465) (55,532) (68,771) (75,523) (74,578)
Deferred lease costs 167,560 152,656 155,687 151,746 148,552
Deferred lease costs, accumulated amortization (26,464) (24,716) (25,838) (24,561) (22,753)
Investment in development authority bonds 120,000 120,000 120,000 120,000 120,000
Other assets held for sale - - - - 79,681
Other assets held for sale, accumulated amortization - - - - (34,152)
Total assets 4,511,539$ 4,043,280$ 4,152,977$ 4,190,453$ 4,299,793$
Liabilities:
Line of credit and notes payable 974,176$ 522,978$ 648,774$ 650,196$ 724,602$
Bonds payable 700,000 700,000 700,000 700,000 700,000
Discount and fees on notes and bonds payable (9,235) (9,049) (9,250) (9,663) (10,164)
125,002 129,802 140,151 125,743 131,028
Distributions payable 23,961 - - - 36,727
Deferred income 18,481 15,756 19,392 19,329 19,694
Intangible lease liabilities 46,878 29,328 69,006 74,729 77,939
Intangible lease liabilities, accumulated amortization (19,660) (19,437) (39,939) (43,750) (44,564)
Obligations under capital leases 120,000 120,000 120,000 120,000 120,000
Liabilities held for sale - - - - 43,002
Liabilities held for sale, accumulated amortization - - - - (1,239)
Total liabilities 1,979,603$ 1,489,378$ 1,648,134$ 1,636,584$ 1,797,025$
Equity:
Common stock 1,198$ 1,198$ 1,211$ 1,224$ 1,221$
Additional paid in capital 4,487,071 4,485,368 4,513,922 4,539,144 4,538,912
Cumulative distributions in excess of earnings (1,957,236) (1,931,927) (2,009,405) (1,986,250) (2,036,482)
Other comprehensive loss 903 (737) (885) (249) (883)
Total equity 2,531,936$ 2,553,902$ 2,504,843$ 2,553,869$ 2,502,768$
Total liabilities and equity 4,511,539$ 4,043,280$ 4,152,977$ 4,190,453$ 4,299,793$
Supplemental Information - Q4 2017 7
Consolidated Balance Sheet - GAAP
As of Period End
Accounts payable, accrued expenses, and accrued capital
expenditures
Columbia Property Trust, Inc.
Unaudited (in thousands)
12/31/2017 9/30/2017 6/30/2017 3/31/2017 12/31/2016
Assets:
Real estate assets, at cost:
Land 257,231$ 188,077$ 77,841$ 77,841$ 77,841$
Buildings and improvements 852,317 708,031 205,062 203,973 203,534
Buildings and improvements, accumulated depreciation (31,298) (24,745) (10,912) (9,375) (7,708)
Intangible lease asset 47,465 22,033 1,817 2,214 2,222
Intangible lease asset, accumulated amortization (4,640) (2,953) (609) (861) (723)
Construction in progress 4,409 4,220 1,767 1,826 1,700
Total real estate assets 1,125,484$ 894,663$ 274,966$ 275,618$ 276,866$
Cash and cash equivalents 27,931 12,350 3,090 2,352 4,794
Tenant receivables, net of allowance for doubtful accounts 1,721 1,055 155 179 122
Straight line rent receivable 16,274 15,520 7,696 7,175 6,272
Prepaid expenses and other assets 3,763 3,178 288 306 170
Intangible lease origination costs 35,057 23,963 1,447 1,524 1,526
Intangible lease origination costs, accumulated amortization (3,652) (2,603) (422) (425) (353)
Deferred lease costs 22,570 21,245 15,340 15,120 14,833
Deferred lease costs, accumulated amortization (2,950) (2,404) (1,813) (1,503) (1,168)
Total assets 1,226,198$ 966,967$ 300,747$ 300,346$ 303,062$
Liabilities:
Line of credit and notes payable 165,750$ 165,750$ 165,750$ 165,750$ 165,750$
Fees on notes payable (149) (155) (162) (169) (176)
31,822 25,263 7,320 5,477 7,604
Deferred income 3,488 1,624 526 748 569
Intangible lease liabilities 121,455 113,042 2,523 2,548 2,561
Intangible lease liabilities, accumulated amortization (7,379) (5,840) (794) (699) (592)
Total liabilities 314,987$ 299,684$ 175,163$ 173,655$ 175,716$
Total equity 911,211$ 667,283$ 125,584$ 126,691$ 127,346$
Total equity 911,211$ 667,283$ 125,584$ 126,691$ 127,346$
Basis differences, net of $524K of accumulated amortization (2) 32,031 30,822 - - -
Investment in unconsolidated joint ventures (page 7) 943,242$ 698,105$ 125,584$ 126,691$ 127,346$
-$
Supplemental Information - Q4 2017 8
(2) Reflects differences between historical costs recorded at the joint venture level and CXP's investment in the joint ventures. Basis differences result from
differences in the timing of each partner's acquisition of an interest in the joint venture, and formation costs incurred by CXP, and are being amortized to income
(loss) from unconsolidated joint ventures over the life of the related asset or liability.
Elements of Pro-Rata Balance Sheet - CXP's Interest in Unconsolidated Joint Ventures (1)
As of Period End
Accounts payable, accrued expenses, and accrued capital
expenditures
(1) Reflects CXP's ownership share of assets and liabilities for properties held in unconsolidated joint ventures (see page 18).
Unaudited (in thousands, except per-share amounts)
12/31/2017 12/31/2016 12/31/2017 9/30/2017 6/30/2017 3/31/2017 12/31/2016
Revenues:
Rental income 257,059$ 366,186$ 63,750$ 55,015$ 67,121$ 71,173$ 85,472$
Tenant reimbursements 23,511 69,770 4,902 3,053 6,972 8,584 14,219
Hotel income 1,339 22,661 - - - 1,339 5,177
3,782 2,122 1,656 1,154 498 474 467
Other property income (1) (2) 3,309 12,804 1,317 1,140 266 586 433
Total revenues 289,000$ 473,543$ 71,625$ 60,362$ 74,857$ 82,156$ 105,768$
Operating expenses:
Property operating costs 87,805 154,968 23,302 18,567 21,831 24,105 34,289
Hotel operating costs 2,089 18,686 4 - 9 2,076 4,371
Asset and property management fee expense 918 1,415 201 188 260 269 357
Depreciation 80,394 108,543 19,865 18,501 20,423 21,605 24,026
Amortization 32,403 56,775 7,885 6,870 8,191 9,457 13,873
General and administrative - corporate 34,966 33,876 9,963 7,034 9,201 8,768 8,158
1,454 - 741 713 - - -
Total operating expenses 240,029$ 374,263$ 61,961$ 51,873$ 59,915$ 66,280$ 85,074$
Operating income 48,971$ 99,280$ 9,664$ 8,489$ 14,942$ 15,876$ 20,694$
Other income (expense):
Interest expense (53,316) (60,409) (14,408) (12,931) (12,662) (13,315) (13,394)
Capital lease obligation interest expense (7,200) (7,200) (1,800) (1,800) (1,800) (1,800) (1,800)
Development authority bond income 7,200 7,200 1,800 1,800 1,800 1,800 1,800
Interest and other income 2,329 88 61 1,041 677 550 36
Loss on early extinguishment of debt (325) (18,997) - (280) - (45) -
Total other income (expense) (51,312)$ (79,318)$ (14,347)$ (12,170)$ (11,985)$ (12,810)$ (13,358)$
(2,341)$ 19,962$ (4,683)$ (3,681)$ 2,957$ 3,066$ 7,336$
Income tax benefit (expense) 213 (445) (165) (3) (7) 388 (58)
(2,128)$ 19,517$ (4,848)$ (3,684)$ 2,950$ 3,454$ 7,278$
Income (loss) from unconsolidated joint ventures (p. 10) 2,651 (7,561) 3,500 2,853 (1,817) (1,885) (2,120)
523$ 11,956$ (1,348)$ (831)$ 1,133$ 1,569$ 5,158$
Gain on sale of real estate assets 175,518 72,325 - 102,365 - 73,153 22,242
176,041$ 84,281$ (1,348)$ 101,534$ 1,133$ 74,722$ 27,400$
120,795 123,130 119,383 120,293 121,534 122,003 122,709
1.45$ 0.68$ (0.01)$ 0.84$ 0.01$ 0.61$ 0.22$
121,159 123,228 119,841 120,529 121,909 122,329 122,855
1.45$ 0.68$ (0.01)$ 0.84$ 0.01$ 0.61$ 0.22$
(1) Other property income includes lease termination income, cafeteria revenue, fitness center revenue, and management fee reimbursements.
Supplemental Information - Q4 2017 9
Income (loss) before income (loss) from unconsolidated
joint ventures and gains on sale of real estate assets
Columbia Property Trust, Inc.
Consolidated Statements of Operations - GAAP
Twelve Months Ended Three Months Ended
Income (loss) before income tax expense, income (loss)
from unconsolidated joint ventures and gains on sale
of real estate assets
Asset & property management fee income
General and administrative - unconsolidated joint
ventures
(2) Includes adjustments for straight-line rent related to lease terminations.
Income (loss) before gain on sale of real estate
assets
Net income
Weighted-average common shares outstanding - basic
Net income per share - basic
Weighted-average common shares outstanding - diluted
Net income per share - diluted
Unaudited (in thousands, except per-share amounts)
12/31/2017 12/31/2016 12/31/2017 9/30/2017 6/30/2017 3/31/2017 12/31/2016
Revenues:
Rental income 49,819$ 16,448$ 23,314$ 18,394$ 4,066$ 4,045$ 4,022$
Tenant reimbursements 10,918 4,578 4,519 4,024 1,252 1,123 1,080
Total revenues 60,737$ 21,026$ 27,833$ 22,418$ 5,318$ 5,168$ 5,102$
Operating expenses:
Property operating costs 25,625 10,290 11,058 9,340 2,642 2,585 2,762
Asset and property management fee expense 2,426 1,004 1,112 824 251 239 236
Depreciation 15,079 6,780 6,553 5,169 1,689 1,668 1,671
Amortization 5,664 1,996 3,065 1,735 434 430 435
General and administrative 287 80 164 93 9 21 8
Acquisition fees and expenses 43 - - 43 - - -
Total operating expenses 49,124$ 20,150$ 21,952$ 17,204$ 5,025$ 4,943$ 5,112$
Operating income 11,613$ 876$ 5,881$ 5,214$ 293$ 225$ (10)$
Other income (expense):
Interest expense (8,432) (8,431) (2,108) (2,108) (2,108) (2,108) (2,108)
Interest and other income - 1 - - - - -
Total other income (expense) (8,432)$ (8,430)$ (2,108)$ (2,108)$ (2,108)$ (2,108)$ (2,108)$
3,181$ (7,554)$ 3,773$ 3,106$ (1,815)$ (1,883)$ (2,118)$
Income tax benefit (expense) (6) (7) (4) 2 (2) (2) (2)
3,175$ (7,561)$ 3,769$ 3,108$ (1,817)$ (1,885)$ (2,120)$
Amortization of basis differences (p. 8) (524) - (269) (255) - - -
2,651$ (7,561)$ 3,500$ 2,853$ (1,817)$ (1,885)$ (2,120)$
Supplemental Information - Q4 2017 10
(1) Reflects CXP's ownership share of revenues and expenses for properties held in unconsolidated joint ventures (see page 18).
Income (loss) from unconsolidated joint ventures before
amortization of basis differences
Columbia Property Trust, Inc.
Elements of Pro-Rata Statement of Operations - CXP's Interest in Unconsolidated Joint Ventures (1)
Twelve Months Ended Three Months Ended
Income (loss) before income tax expense
Income (loss) from unconsolidated joint ventures (p. 9)
Unaudited (in thousands, except per-share amounts)
12/31/2017 12/31/2016 12/31/2017 9/30/2017 6/30/2017 3/31/2017 12/31/2016
Net Operating Income (based on GAAP rents) 228,875$ 306,101$ 63,170$ 53,445$ 54,684$ 57,576$ 68,388$
Non-cash carrying costs for Shuman Boulevard (2) 3,420 - 1,903 1,517 - - -
Asset & property management fee income 3,782 2,122 1,656 1,154 498 474 467
General and administrative - corporate (34,966) (33,876) (9,963) (7,034) (9,201) (8,768) (8,158)
(1,454) - (741) (713) - - -
Interest expense (net) (58,187) (67,538) (16,147) (13,690) (13,785) (14,565) (15,158)
Interest income from development authority bonds 7,200 7,200 1,800 1,800 1,800 1,800 1,800
Income tax benefit (expense) 213 (445) (165) (3) (7) 388 (58)
(10,530) (8,517) (3,321) (2,959) (2,119) (2,131) (2,118)
Normalized FFO 138,353$ 205,047$ 38,192$ 33,517$ 31,870$ 34,774$ 45,163$
Normalized FFO per share (basic) 1.15$ 1.67$ 0.32$ 0.28$ 0.26$ 0.29$ 0.37$
Normalized FFO per share (diluted) 1.14$ 1.66$ 0.32$ 0.28$ 0.26$ 0.28$ 0.37$
Net Operating Income (based on cash rents) 194,782$ 279,360$ 51,175$ 45,672$ 47,999$ 49,936$ 60,665$
Non-cash carrying costs for Shuman Boulevard (2) 3,420 - 1,903 1,517 - - -
Asset & property management fee income 3,782 2,122 1,656 1,154 498 474 467
General and administrative - corporate (34,966) (33,876) (9,963) (7,034) (9,201) (8,768) (8,158)
(1,454)
-
(741) (713) - - -
Stock based compensation expense in G&A (3) 7,580 4,558 2,072 1,555 2,262 1,691 1,046
Straight-line rent receivable write-off in G&A (4) - 474 - - - - 2
Interest expense - cash (net) (47,977) (56,788) (13,577) (11,142) (11,265) (11,993) (12,574)
Income tax benefit (expense) 213 (445) (165) (3) (7) 388 (58)
(10,504) (8,465) (3,316) (2,952) (2,112) (2,124) (2,111)
Maintenance capital (5) (6) (36,245) (112,194) (11,742) (11,076) (11,752) (1,675) (82,311)
AFFO 78,631$ 74,746$ 17,302$ 16,978$ 16,422$ 27,929$ (43,032)$
120,795 123,130 119,383 120,293 121,534 122,003 122,709
121,159 123,228 119,841 120,529 121,909 122,329 122,855
Supplemental Information - Q4 2017 11
(6) Reflects CXP's ownership share of capital expenditures for properties held in unconsolidated joint ventures (see page 18).
(5) See page 33 of this supplemental report for a description of Maintenance Capital and page 14 for a detail of all capital expenditures.
(3) This item represents the noncash impact of compensation expense related to stock grants under our 2013 Long-Term Incentive Plan within general and
administrative expense.
(4) Includes adjustments for straight-line rent related to lease terminations within general and administrative expense.
Columbia Property Trust, Inc.
Normalized Funds From Operations (NFFO) & Adjusted Funds From Operations (AFFO) (1)
Twelve Months Ended Three Months Ended
Weighted-average common shares outstanding - basic
Weighted-average common shares outstanding - diluted
Adjustments included in loss from unconsolidated
joint venture
Adjustments included in loss from unconsolidated
joint venture
(1) For definitions and reconciliations of these non-GAAP financial metrics, see pages 29 - 33.
(2) The OfficeMax lease expired in May 2017, and the non-recourse mortgage note matured in July 2017. Columbia Property Trust is working with the special-
servicer to effect the transfer of the property to the lender in settlement of the loan principal, accrued interest expense and accrued property operating expenses.
In the fourth quarter of 2017, Columbia Property Trust accrued related interest expense of $1.3 million, at the default rate of 10.55%, and property operating
costs of $0.6 million.
General and administrative - unconsolidated joint
ventures
General and administrative - unconsolidated joint
ventures
Unaudited (in thousands)
12/31/2017 12/31/2016 12/31/2017 9/30/2017 6/30/2017 3/31/2017 12/31/2016
Net Operating Income (based on GAAP rents)
Revenues:
Rental Income 217,615$ 213,161$ 55,392$ 54,294$ 53,431$ 54,498$ 53,959$
Tenant Reimbursements 18,221 22,868 4,391 4,293 4,219 5,318 5,739
Other Property Income 3,242 12,052 1,273 1,098 266 605 339
Total Revenues 239,078$ 248,081$ 61,056$ 59,685$ 57,916$ 60,421$ 60,037$
Operating Expenses:
Property Operating Costs (79,508) (83,742) (20,914) (20,144) (19,329) (19,121) (19,869)
Total Operating Expenses (79,508)$ (83,742)$ (20,914)$ (20,144)$ (19,329)$ (19,121)$ (19,869)$
159,570$ 164,339$ 40,142$ 39,541$ 38,587$ 41,300$ 40,168$
51,665$ 49,522$ 13,147$ 13,079$ 13,099$ 12,340$ 12,050$
Net Operating Income from:
Acquisitions (4) 10,793 - 10,260 533 - - -
Dispositions (5) 6,847 92,240 (379) 292 2,998 3,936 16,170
Net Operating Income (based on GAAP rents) 228,875$ 306,101$ 63,170$ 53,445$ 54,684$ 57,576$ 68,388$
Net Operating Income (based on cash rents)
Revenues:
Rental Income 184,413$ 197,303$ 44,508$ 45,636$ 46,898$ 47,371$ 46,312$
Tenant Reimbursements 18,221 22,868 4,391 4,293 4,219 5,318 5,739
Other Property Income 3,242 12,052 1,273 1,098 266 605 339
Total Revenues 205,876$ 232,223$ 50,172$ 51,027$ 51,383$ 53,294$ 52,390$
Operating Expenses:
Property Operating Costs (76,150) (81,198) (20,081) (19,311) (18,497) (18,261) (19,233)
Total Operating Expenses (76,150)$ (81,198)$ (20,081)$ (19,311)$ (18,497)$ (18,261)$ (19,233)$
129,726$ 151,025$ 30,091$ 31,716$ 32,886$ 35,033$ 33,157$
48,207$ 45,670$ 12,734$ 12,176$ 12,219$ 11,078$ 10,785$
Net Operating Income from:
Acquisitions (4) 10,222 - 8,729 1,493 - - -
Dispositions (5) 6,627 82,665 (379) 287 2,894 3,825 16,723
Net Operating Income (based on cash rents) 194,782$ 279,360$ 51,175$ 45,672$ 47,999$ 49,936$ 60,665$
-2.4% -2.7%
Supplemental Information - Q4 2017 12
(4) Reflects activity for the following properties acquired since January 1, 2016, for all periods presented: 1800 M Street (55% share), 218 West 18th Street, 245-
249 West 17th Street, and 114 5th Avenue (49.5% share).
Same Store Net Operating Income
(based on cash rents) CXP Ownership of Properties
in Unconsolidated Joint Ventures (3)
Same Store Net Operating Income
(based on cash rents) wholly-owned properties (2)
(5) Reflects activity for the following properties sold since January 1, 2016, for all periods presented: University Circle (22.5% share), 333 Market Street (22.5%
share), Key Center Tower, Key Center Marriott, 5 Houston Center, Energy Center, 515 Post Oak, SanTan Corporate Center, Sterling Commerce, 80 Park Plaza, 9127,
9189, 9191 & 9193 S. Jamaica Street, 800 North Frederick, and 100 East Pratt.
(1) For definitions and reconciliations of these non-GAAP financial metrics, see pages 29 - 33.
(3) Reflects CXP's ownership share of NOI for properties held in unconsolidated joint ventures (see page 18).
(2) Reflects NOI from properties that were wholly-owned for the entirety of the periods presented.
Same Store Net Operating Income
(based on GAAP rents) wholly-owned properties (2)
Same Store Net Operating Income
(based on GAAP rents) CXP Ownership of Properties
in Unconsolidated Joint Ventures (3)
Columbia Property Trust, Inc.
Net Operating Income (1)
Twelve Months Ended Three Months Ended
Unaudited (in thousands)
12/31/2017 12/31/2016 12/31/2017 9/30/2017 6/30/2017 3/31/2017 12/31/2016
JV Total:
3,782$ 2,122$ 1,656$ 1,154 498 474 467
(1,454) - (741) (713) - - -
Subtotal 2,328$ 2,122$ 915$ 441$ 498$ 474$ 467$
Less CXP Share:
2,295$ 1,003$ 1,045$ 760$ 251$ 239$ 236$
(937) - (471) (466) - - -
Subtotal 1,358$ 1,003$ 574$ 294$ 251$ 239$ 236$
JV Partner's Share:
1,487$ 1,119$ 611$ 394$ 247$ 235$ 231$
(517) - (270) (247) - - -
Total - Third-Party Management Income 970$ 1,119$ 341$ 147$ 247$ 235$ 231$
Supplemental Information - Q4 2017 13
Columbia Property Trust, Inc.
Third-Party Management Income
Twelve Months Ended Three Months Ended
Asset & property management fee income (page 9)
Asset & property management fee income
Income earned from managing the following properties, in which CXP owns interests through unconsolidated joint ventures at the following
percentages as of 12/31/17: Market Square - 51%, University Circle - 77.5%, 333 Market Street - 77.5% and 1800 M Street - 55%.
Asset & property management fee income
General and administrative - unconsolidated joint
ventures (page 9)
General and administrative - unconsolidated joint
ventures
General and administrative - unconsolidated joint
ventures
Unaudited ($ in thousands)
12/31/2017 9/30/2017 6/30/2017 3/31/2017
Maintenance
Building Capital 1,758$ 927$ 1,124$ 423$ 1,044$
Tenant Improvements 1,428 6,015 9,854 716 1,610
Leasing Commissions 5,909 2,694 769 358 10,319
Other Leasing Costs 2,647 1,440 5 178 69,338 (2)
Total - Maintenance 11,742$ 11,076$ 11,752$ 1,675$ 82,311$
Investment
Building Capital 8,716$ 4,887$ 5,971$ 9,069$ 7,192$
Tenant Improvements 11,199 9,355 13,525 8,961 8,800
Leasing Commissions 7,443 2,247 3,978 3,074 4,232
Other Leasing Costs 530 (64) 83 141 1,796
Total - Investment 27,888$ 16,425$ 23,557$ 21,245$ 22,020$
Maintenance & Investment
Building Capital 10,474$ 5,814$ 7,095$ 9,492$ 8,236$
Tenant Improvements 12,627 15,370 23,379 9,677 10,410
Leasing Commissions 13,352 4,941 4,747 3,432 14,551
Other Leasing Costs 3,177 1,376 88 319 71,134
Total - Maintenance & Investment 39,630$ 27,501$ 35,309$ 22,920$ 104,331$
Supplemental Information - Q4 2017 14
(2) Includes $68.7M of lease incentives related to the NYU lease at 222 East 41st Street.
NOTE: See page 33 of this supplemental report for a description of Maintenance and Investment Capital.
Columbia Property Trust, Inc.
Capital Expenditure Summary (1)
Capital Expenditures Three Months Ended
12/31/2016
(1) Reflects CXP's ownership share of capital expenditures for properties held in unconsolidated joint ventures (see page 18).
Unaudited ($ in thousands) (at 12/31/2017)
Debt Instrument - Secured Maturity Rate Rate Type Balance % of Total Debt
Mortgage Debt
One Glenlake Parkway December-18 5.80% Fixed 23,176$ 1.3%
Market Square July-23 5.07% Fixed 165,750 (1) 9.3%
Weighted Average / Secured - Mortgage Notes 4.9 Years 5.16% 188,926$ (2) 10.6%
Debt Instrument - Unsecured Maturity Rate Rate Type Balance % of Total Debt
Bank Facilities
$300 Million Bridge Loan (3) November-18 LIBOR + 110 bps Floating 300,000$ 16.8%
$500 Million Revolving Credit Facility (4) July-19 LIBOR + 100 bps Floating 152,000 8.4%
$300 Million Term Loan (5) July-20 LIBOR + 110 bps Floating 300,000 16.8%
$150 Million Term Loan (6) July-22 3.07% Fixed 150,000 8.4%
Weighted Average / Bank Facilities 2.2 Years 2.55% 902,000$ 50.4%
Bonds
$350 Million @ 4.150% April-25 4.15% Fixed 350,000$ 19.5%
$350 Million @ 3.650% August-26 3.65% Fixed 350,000 19.5%
Weighted Average / Bonds 7.9 Years 3.90% 700,000$ 39.0%
Weighted Average / Unsecured 4.7 Years 3.14% 1,602,000$ 89.4%
Weighted Average / Total Debt 4.7 Years 3.35% 1,790,926$ 100.0%
Debt - consolidated 1,625,176$
Debt - unconsolidated 165,750
Total Debt 1,790,926$
Weighted Ave
Maturity
Weighted Ave
Rate - Qtr Balance % of Total Debt
6.9 Years 4.01% 1,038,926$ 58.0%
1.7 Years 2.45% 752,000 42.0%
Total 4.7 Years 3.35% 1,790,926$ (2) 100.0%
8.2x
37.2%
(1) Reflects 51% of the mortgage balance of the Market Square Joint Venture, in which CXP owns a 51% interest through an unconsolidated joint venture.
Supplemental Information - Q4 2017 15
Debt Ratios
Net Debt to EBITDA - Q4 2017
Net Debt to Gross Real Estate Assets - 12/31/17
(6) Columbia Property Trust is party to an interest rate swap agreement, which effectively fixes its interest rate on the $150 Million Term Loan at 3.07% per annum
and terminates on July 29, 2022. The spread of 1.10% over the swapped rate is based on the company's credit rating. This interest rate swap agreement qualifies
for hedge accounting treatment; therefore, changes in fair value are recorded as a market value adjustment to interest rate swap in our consolidated statements of
other comprehensive income.
Columbia Property Trust, Inc.
Debt Overview
(5) The $300 Million Term Loan bears interest at a rate based on, at the option of Columbia Property Trust, LIBOR for seven days, one-, two-, three-, or six-month
periods, plus an applicable margin ranging from 0.90% to 1.75% based on credit rating, or the alternate base rate which is the greater of (a) Prime Rate, (b) Fed
Funds plus 1/2 of 1%, and (c) the Libor Rate plus 1%, plus an applicable margin ranging from 0.00% to 0.75% based on credit rating.
Fixed and Floating Rate Debt Analysis
Fixed Rate Debt
Floating Rate Debt
(4) The Revolving Credit Facility ($500MM) bears interest at a rate based on, at the option of Columbia Property Trust, LIBOR for seven days, one-, two-, three-, or six-
month periods, plus an applicable margin ranging from 0.875% to 1.55% based on credit rating, or the alternate base rate which is the greater of (a) Prime Rate, (b)
Fed Funds plus 1/2 of 1%, and (c) the Libor Rate plus 1%, plus an applicable margin ranging from 0.00% to 0.55% based on credit rating. This facility carries two six-
month extension options.
(2) Excludes the $49 million mortgage note on 263 Shuman Boulevard, which matured in July 2017. The company is in the process of transferring the property to
the lender.
(3) The $300 Million Bridge Loan bears interest at a rate based on, at the option of Columbia Property Trust, LIBOR for seven days, one-, two-, or three-month
periods, plus an applicable margin ranging from 0.90% to 1.75% based on credit rating, or the alternate base rate which is the greater of (a) Prime Rate, (b) Fed
Funds plus 1/2 of 1%, and (c) the Libor Rate plus 1%, plus an applicable margin ranging from 0.00% to 0.75% based on credit rating.
Unaudited (at 12/31/2017)
Bond Covenant Compliance Metric Actual (12/31/17)
Debt to Total Asset Value Ratio Max 60% 35%
Interest Coverage Ratio (adjusted EBITDA) Min 1.50x 2.25x
Secured Debt to Total Asset Value Ratio Max 40% 2%
Maintenance of Total Unencumbered Assets Min 150% 233%
Term Loan / Revolving Credit Facility Covenant Compliance Metric Actual (12/31/17)
Debt to Total Asset Value Ratio Max 60% 47%
Interest Coverage Ratio (adjusted EBITDA) Min 1.50x 2.28
Secured Debt to Total Asset Value Ratio Max 40% 6%
Unencumbered Asset Coverage Ratio Min 1.66x 1.85x
Unencumbered Interest Coverage Ratio Min 1.75x 3.39x
Supplemental Information - Q4 2017 16
Columbia Property Trust, Inc.
Debt Covenant Compliance
Unaudited ($ in thousands) (at 12/31/2017)
Secured Unsecured Unsecured % of Interest % of Gross
Mortgage Debt Bank Facilities Bonds Total Debt Rate (1) Real Estate Assets
23,176$ 300,000$ -$ 323,176$ 18.0% 2.70% 6.8%
- 152,000 - 152,000 8.5% 2.54% 3.2%
- 300,000 - 300,000 16.8% 2.39% 6.2%
- 150,000 - 150,000 8.4% 3.07% 3.1%
165,750 - - 165,750 9.3% 5.07% 3.5%
- - 350,000 350,000 19.5% 4.15% 7.4%
- - 350,000 350,000 19.5% 3.65% 7.4%
188,926$ 902,000$ 700,000$ 1,790,926$ (2) 100.0% 3.35% 37.6%
10.6% 50.4% 39.0%
Supplemental Information - Q4 2017 17
2023
(2) Excludes the $49 million 263 Shuman mortgage note. In July 2017, the lender put this note into monetary default due to the expiration of the maturity date.
Columbia Property Trust is in process of working to transfer this property to the lender.
Columbia Property Trust, Inc.
Debt Maturities
(1) Weighted average. Includes effective rates on variable rate loans swapped to fixed.
Maturity
2025
2026
Total
% of Total Debt
2018
2019
2020
Total Debt
2022
$23
$166
$300
$300
$150 $152
$350 $350
$0
$100
$200
$300
$400
$500
2018 2019 2020 2021 2022 2023 2024 2025 2026
Maturity Schedule ($M)
Mortgage Debt Term Loans Line of Credit Bonds
2.70%
4.15%
3.07%
3.65%
5.07%
2.39%
2.54%
Unaudited ($ in thousands) (at 12/31/2017)
CXP Ownership
Market Square 51.0% 128,411$ (1)
333 Market Street 77.5% 173,798
University Circle 77.5% 288,236
114 5th Avenue 49.5% 110,311
1800 M Street 55.0% 242,486
Investment in Unconsolidated Joint Ventures (page 8) 943,242$ (2)
333 Market Street
University Circle
114 5th Avenue
Total (gross)
Amortization
Total (net)
Supplemental Information - Q4 2017 18
(2) Reflects differences between historical costs recorded at the joint venture level and CXP's investment in the joint ventures. Basis differences result from
differences in the timing of each partner's acquisition of an interest in the joint venture, and formation costs incurred by CXP, and are being amortized to income
(loss) from unconsolidated joint ventures over the life of the related asset or liability.
Columbia Property Trust, Inc.
Unconsolidated Joint Ventures
Investment in
Unconsolidated Joint
Venture
(1) Market Square Joint Venture holds a $325 million mortgage note, see page 15.
Property
Unaudited
(1) See page 20 of this supplemental report for a description of Gross Real Estate Assets.
(2) 263 Shuman Boulevard is excluded as the company is in the process of transferring the property to the lender.
19Supplemental Information - Q4 2017
Portfolio Occupancy2 New Leasing - 12/31/17
Columbia Property Trust, Inc.
Key Operating Metrics
Market Distribution by
% Gross Real Estate Assets1,2 - 12/31/17
Leasing Activity & Spreads
New & Renewal - 2017
45%
22%
13%
10%
6% 4%
SF Leased
82.9%
96.2%
Avg. Economic - Q4 17 Leased - 12/31/17
Occupancy
2Q 17
44% / 30%
GAAP / Cash Basis
2,054,034
Square Feet
Rental Revenues
Uncommenced
& In Abatement
$63.7M
Columbia Property Trust, Inc.
Property Overview - Gross Real Estate Assets, Net Operating Income & Annualized Lease Revenue
Unaudited ($ in thousands) (at 12/31/2017)
Secured
Market Ownership % Debt?
229 West 43rd Street New York, NY 100% 509,398$ 35,828$ 6,957$ 5,910$
315 Park Avenue South New York, NY 100% 380,888 23,707 1,918 874
245-249 West 17th Street New York, NY 100% 340,597 21,912 4,358 3,502
222 East 41st Street New York, NY 100% 299,161 15,277 (2) 3,365 (427)
95 Columbus Jersey City, NJ 100% 204,441 24,746 3,947 4,269
218 West 18th Street New York, NY 100% 175,324 9,938 2,362 1,598
114 5th Avenue New York, NY 49.5% 128,837 (3) 15,910 (3) 557 (3) 1,575 (3)
149 Madison Avenue New York, NY 100% 89,233 - (4) 9 9
Subtotal - New York 2,127,879 45% 147,318 23,473 17,310
650 California Street San Francisco, CA 100% 330,923 31,655 3,446 1,581
333 Market Street San Francisco, CA 77.5% 286,727 (3) 19,243 (3) 4,926 (3) 4,572 (3)
221 Main Street San Francisco, CA 100% 244,658 24,474 4,388 3,423
University Circle East Palo Alto, CA 77.5% 161,946 (3) 31,375 (3) 5,689 (3) 5,770 (3)
Subtotal - San Francisco 1,024,254 21% 106,747 18,449 15,346
Market Square Washington, D.C. 51% Yes 289,167 (3) 23,023 (3) 2,532 (3) 2,391 (3)
1800 M Street Washington, D.C. 55% 240,902 (3) 17,146 (3) 2,973 (3) 2,045 (3)
80 M Street Washington, D.C. 100% 109,596 13,527 1,935 998
Subtotal - Washington, D.C. 639,665 13% 53,696 7,440 5,434
Lindbergh Center Atlanta, GA 100% 288,447 22,579 (5) 5,585 5,600
One & Three Glenlake Parkway Atlanta, GA 100% Yes (6) 176,237 17,930 (7) 2,941 3,074
Subtotal - Atlanta 464,684 10% 40,509 8,526 8,674
Cranberry Woods Drive Pittsburgh, PA 100% 195,152 14,570 (5) 4,055 2,996
116 Huntington Avenue Boston, MA 100% 164,616 12,081 1,583 1,615
Pasadena Corporate Park Los Angeles, CA 100% 111,836 8,256 1,091 1,244
Subtotal - Other 471,604 10% 34,907 6,729 5,855
263 Shuman Boulevard Chicago, IL 100% Yes 45,333 1% - (8) (732) (732)
Corporate & Other 3,196 - (715) (9) (712) (9)
Total - All Properties (3) 4,776,615$ 383,177$ 63,170$ 51,175$
Total - wholly-owned properties 3,669,036$ 276,480$ 46,493$ 34,822$
Total - CXP Share of Properties in Unconsolidated Joint Ventures 1,107,579$ 106,697$ 16,677$ 16,353$
Supplemental Information - Q4 2017
Gross Annualized Income - Q4 2017 Income - Q4 2017
Net Operating Net Operating
Real Estate Lease (based on (based on
Property Assets (1) Revenue (ALR) GAAP rents) cash rents)
(7) Reimbursements are excluded for Three Glenlake Parkway, as operating expenses, except for insurance expense, are paid directly by the tenant.
(8) Pro forma for the planned return of the property to the lender.
(9) Includes net operating income for previously sold properties.
20
(1) Gross Real Estate Assets includes (i) land, (ii) building and improvements, (iii) intangible lease assets, (iv) construction in progress, and (v) intangible lease origination
costs, less (vi) intangible lease liabilities.
(2) Reimbursements are excluded, as operating expenses are paid directly by the tenant.
(3) Reflects CXP's ownership share in the property which is held in an unconsolidated joint venture, including any basis differences (page 8).
(4) Excluded from ALR as the property is currently under development.
(5) Reimbursements are excluded, as operating expenses, except for insurance expense, are paid directly by the tenant.
(6) Secured debt only applies to One Glenlake Parkway.
Columbia Property Trust, Inc.
Property Overview - Square Feet & Occupancy
Unaudited (SF in thousands) (at 12/31/2017)
Average
Percent Commenced Economic
Market Ownership % Leased Occupancy Occupancy (1)
229 West 43rd Street New York, NY 100% 482 482 100.0% 100.0% 90.0%
315 Park Avenue South New York, NY 100% 334 279 83.5% 58.0% 46.2%
245-249 West 17th Street New York, NY 100% 281 281 100.0% 100.0% 100.0%
222 East 41st Street New York, NY 100% 390 390 100.0% 100.0% 0.0%
95 Columbus Jersey City, NJ 100% 630 630 100.0% 100.0% 100.0%
218 West 18th Street New York, NY 100% 166 152 91.6% 91.6% 94.6%
114 5th Avenue New York, NY 49.5% 174 (2) 174 (2) 100.0% 100.0% 100.0%
149 Madison Avenue New York, NY 100% - (3) - (3) - - -
Subtotal - New York 2,457 2,388 97.2% 93.7% 74.5%
650 California Street San Francisco, CA 100% 483 447 92.5% 70.6% 48.2%
333 Market Street San Francisco, CA 77.5% 509 (2) 509 (2) 100.0% 100.0% 100.0%
221 Main Street San Francisco, CA 100% 381 357 93.7% 93.0% 86.9%
University Circle East Palo Alto, CA 77.5% 350 (2) 350 (2) 100.0% 100.0% 99.5%
Subtotal - San Francisco 1,723 1,663 96.5% 90.2% 82.5%
Market Square Washington, D.C. 51% 356 (2) 284 (2) 79.8% 78.5% 69.1%
1800 M Street Washington, D.C. 55% 317 (2) 297 (2) 93.7% 87.1% 74.4%
80 M Street Washington, D.C. 100% 285 265 93.0% 92.0% 64.1%
Subtotal - Washington, D.C. 958 846 88.3% 85.3% 69.4%
Lindbergh Center Atlanta, GA 100% 955 955 100.0% 100.0% 100.0%
One & Three Glenlake Parkway Atlanta, GA 100% 706 701 99.3% 88.1% 86.8%
Subtotal - Atlanta 1,661 1,656 99.7% 95.0% 94.4%
Cranberry Woods Drive Pittsburgh, PA 100% 824 824 100.0% 100.0% 100.0%
116 Huntington Avenue Boston, MA 100% 271 225 83.0% 77.4% 76.3%
Pasadena Corporate Park Los Angeles, CA 100% 264 249 94.3% 94.3% 94.3%
Subtotal - Other 1,359 1,298 95.5% 94.4% 94.1%
263 Shuman Boulevard Chicago, IL 100% - (4) - (4) - - -
Total - All Properties (2) 8,158 7,851 96.2% 92.4% 82.9%
Total - All Properties (at 100%) 9,186 (5) 8,794 (5)
Supplemental Information - Q4 2017 21
Rentable Leased
(5) Includes 100% of properties held in unconsolidated joint ventures (see page 18).
Property Square Feet Square Feet
(1) Total square feet of leases that have commenced and the tenant is paying rent divided by total rentable square feet. Monthly average for the current quarter.
(2) Reflects CXP's ownership share in the property which is held in an unconsolidated joint venture.
(3) Excluded from leasing metrics as the property is currently under development.
(4) Pro forma for the planned return of the property to the lender.
Unaudited (SF in thousands) (at 12/31/2017)
Rentable Leased Percent
Square Footage (1) Square Footage (1) Leased
As of September 30, 2017 7,391 7,026 95.1%
Acquisition (1) (2)
1800 M Street - 55% 317 297 93.7%
218 West 18th Street 166 166 100.0%
245-249 West 17th Street 281 281 100.0%
Subtotal 8,155 7,770
Leasing Activity
New Leases (3) 3 114
Lease Expirations/Early Terminations (33)
Net Absorption 3 81
As of December 31, 2017 8,158 7,851 96.2%
3/31/17
6/30/17
9/30/17
12/31/17
Supplemental Information - Q4 2017 22
Columbia Property Trust, Inc.
Occupancy Summary
(1) Excludes 149 Madison which is currently under development.
(3) New leasing activity for space that was either vacant at the beginning of the quarter or that became available due to expiration/termination of an existing
lease.
(2) As of acquisition date.
90.6%
94.1% 95.3% 95.1%
96.2%
60%
70%
80%
90%
100%
12/31/16 3/31/17 6/30/17 9/30/17 12/31/17
Percent Leased
Unaudited (weighted average unless otherwise noted)
12/31/2017 9/30/2017 6/30/2017 3/31/2017 12/31/2016
Renewal Leases
Number of Leases 6 6 8 6 6
Square Feet of Leasing (at 100%) 979,777 136,714 75,082 138,545 33,789
Square Feet of Leasing (at CXP's share) (1) 973,141 109,979 69,580 135,356 22,554
Lease Term (months) 81 62 104 36 60
Tenant Improvements per Square Foot 10.22 32.31 81.23 10.74 21.18
Leasing Commissions per Square Foot 11.66 12.49 19.45 10.20 16.43
Total per Square Foot 21.88$ 44.80$ 100.68$ 20.94$ 37.61$
Tenant Improvements per Square Foot per Year of Lease Term 1.52 6.26 9.36 3.56 4.25
Leasing Commissions per Square Foot per Year of Lease Term 1.74 2.42 2.24 3.38 3.30
Total per Square Foot per Year 3.26$ 8.68$ 11.60$ 6.94$ 7.55$
Cash Rent Releasing Spread (2) -6.7% 67.9% 51.6% 0.7% 15.3%
GAAP Rent Releasing Spread (2) 0.5% 117.3% 74.8% 2.6% 35.4%
New Leases (Space Vacant > 1 Year)
Number of Leases 4 2 9 6 7
Square Feet of Leasing (at 100%) 37,735 3,730 193,128 49,455 53,622
Square Feet of Leasing (at CXP's share) (1) 32,852 3,730 193,128 47,173 41,642
Lease Term (months) 114 51 111 116 118
Tenant Improvements per Square Foot 84.75 30.49 98.68 87.48 106.58
Leasing Commissions per Square Foot 36.06 11.67 23.37 14.74 36.94
Total per Square Foot 120.81$ 42.16$ 122.05$ 102.22$ 143.52$
Tenant Improvements per Square Foot per Year of Lease Term 8.94 7.17 10.65 9.03 10.82
Leasing Commissions per Square Foot per Year of Lease Term 3.81 2.75 2.52 1.52 3.75
Total per Square Foot per Year 12.75$ 9.92$ 13.17$ 10.55$ 14.57$
New Leases (Space Vacant < 1 Year) (3)
Number of Leases 6 3 2 4 9
Square Feet of Leasing (at 100%) 253,334 37,506 55,643 93,385 173,995
Square Feet of Leasing (at CXP's share) (1) 253,096 37,506 55,643 93,385 173,995
Lease Term (months) 146 106 97 123 145
Tenant Improvements per Square Foot 89.92 75.13 91.92 57.31 116.59
Leasing Commissions per Square Foot 35.97 32.47 21.56 17.91 26.97
Total per Square Foot 125.89$ 107.60$ 113.48$ 75.22$ 143.56$
Tenant Improvements per Square Foot per Year of Lease Term 7.39 8.48 11.35 5.61 9.66
Leasing Commissions per Square Foot per Year of Lease Term 2.95 3.67 2.66 1.75 2.24
Total per Square Foot per Year 10.34$ 12.15$ 14.01$ 7.36$ 11.90$
Cash Rent Releasing Spread (2) 15.8% 67.1% 73.8% 128.6% 3.5%
GAAP Rent Releasing Spread (2) 20.7% 79.3% 96.9% 147.0% 15.3%
Total Leases
Number of Leases 16 11 19 16 22
Square Feet of Leasing (at 100%) 1,270,846 177,950 323,853 281,385 261,406
Square Feet of Leasing (at CXP's share) (1) 1,259,089 151,215 318,351 275,914 238,191
Lease Term (months) 107 74 108 104 135
Tenant Improvements per Square Foot 43.35 43.84 94.23 53.41 108.05
Leasing Commissions per Square Foot 21.81 17.87 22.32 15.77 27.41
Total per Square Foot 65.16$ 61.71$ 116.55$ 69.18$ 135.46$
Tenant Improvements per Square Foot per Year of Lease Term 2.89 6.84 10.49 5.19 9.35
Leasing Commissions per Square Foot per Year of Lease Term 2.03 2.74 2.49 2.51 2.60
Total per Square Foot per Year 4.92$ 9.58$ 12.98$ 7.70$ 11.95$
Cash Rent Releasing Spread (2) 2.3% 67.7% 61.9% 97.1% 4.5%
GAAP Rent Releasing Spread (2) 8.6% 106.9% 85.1% 111.4% 17.0%
(3) Includes executed leases that have not yet commenced for space covered by an existing lease.
Supplemental Information - Q4 2017 23
Columbia Property Trust, Inc.
Leasing Summary
Three Months Ended
(2) Spread calculation is based on the change in net rent (base rent plus reimbursements less operating expenses).
(1) Reflects CXP's ownership share for properties held in unconsolidated joint ventures.
Unaudited (SF & $ in thousands) (at 12/31/2017)
Expiring Annualized Lease
Revenue (ALR) % of ALR Expiring
Expiring Rentable Square
Footage
% of Rentable Square Footage
Expiring
-$ 0.0% 307 3.8%
6,315 1.6% 94 1.2%
12,583 3.3% 167 2.0%
25,317 6.6% 532 6.5%
64,317 16.8% 1,787 21.9%
24,978 6.5% 475 5.8%
31,631 8.2% 529 6.5%
18,701 4.9% 256 3.1%
56,036 14.6% 783 9.6%
35,399 9.2% 786 9.6%
13,777 3.6% 185 2.3%
7,141 1.9% 115 1.4%
14,473 3.8% 240 3.0%
9,986 2.6% 122 1.5%
3,666 1.0% 164 2.0%
58,857 15.4% 1,616 19.8%
383,177$ 100.0% 8,158 100.0%
Supplemental Information - Q4 2017 24
Vacant
Columbia Property Trust, Inc.
Lease Expiration Schedule (1)
Year
2029
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
(1) Pro forma for the planned return of 263 Shuman Boulevard to the lender.
2030
2031
2032+
Total
NOTE: Expirations that have been renewed are reflected above based on the renewal expiration date.
1.6%
3.3%
6.6%
16.8%
6.5%
8.2%
4.9%
14.6%
9.2%
3.6%
1.9%
3.8%
2.6%
1.0%
15.4%
0.0%
5.0%
10.0%
15.0%
20.0%
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032+
Lease Expiration Schedule
% of ALR Expiring
Columbia Property Trust, Inc.
Unaudited (SF & $ in thousands)
Current Per Current Per Current Per
Period ALR (3) SF ALR (3) SF ALR (3) SF
Q1 2018 - - - 20 1,808 90.40 1 36 36.00
Q2 2018 - - - - - - 2 180 90.00
Q3 2018 - - - 11 534 48.55 7 361 51.57
Q4 2018 - - - 25 1,916 76.64 22 1,277 58.05
Total - 2018 - - - 56 4,258 76.04 32 1,854 57.94
Q1 2019 29 2,197 75.76 10 655 65.50 30 1,560 52.00
Q2 2019 - - - 11 1,133 103.00 9 394 43.78
Q3 2019 - - - 48 4,345 90.52 5 392 78.40
Q4 2019 - - - 16 1,163 72.69 9 744 82.67
Total - 2019 29 2,197 75.76 85 7,296 85.84 53 3,090 58.30
72 4,847 67.32 172 12,179 70.81 13 1,008 77.54
499 19,430 38.94 139 11,823 85.06 95 6,281 66.12
83 6,008 72.39 43 3,692 85.86 107 6,283 58.72
1,705 114,836 67.35 1,168 67,499 57.79 546 35,180 64.43
Total 2,388 147,318$ 61.69$ 1,663 106,747$ 64.19$ 846 53,696$ 63.47$
Current Per Current Per Current Per
Period ALR (3) SF ALR (3) SF ALR (3) SF
Q1 2018 - - - - - - 21 1,844 87.81
Q2 2018 - - - - - - 2 180 90.00
Q3 2018 6 203 33.83 - - - 24 1,098 45.75
Q4 2018 - - - - - - 47 3,193 67.94
Total - 2018 6 203 33.83 - - - 94 6,315 67.18
Q1 2019 - - - - - - 69 4,412 63.94
Q2 2019 - - - - - - 20 1,527 76.35
Q3 2019 - - - - - - 53 4,737 89.38
Q4 2019 - - - - - - 25 1,907 76.28
Total - 2019 - - - - - - 167 12,583 75.35
202 4,522 22.39 73 2,761 37.82 532 25,317 47.59
977 23,280 23.83 77 3,503 45.49 1,787 64,317 35.99
26 791 30.42 216 8,204 37.98 475 24,978 52.59
445 11,713 26.32 932 20,439 21.93 4,796 249,667 52.06
Total 1,656 40,509$ 24.46$ 1,298 34,907$ 26.89$ 7,851 383,177$ 48.81$
(1) Pro forma for the planned return of 263 Shuman Boulevard to the lender.
(2) Reflects CXP's ownership share for properties held in unconsolidated joint ventures.
(3) Expiring ALR is calculated as expiring square footage multiplied by the gross rent per square foot of the tenant currently leasing the space.
Supplemental Information - Q4 2017 25
Lease Expiration by Market (1)
New York (2) San Francisco (2) Washington, D.C. (2)
2021
Expiring Expiring
SF SF
Expiring
SF
Expiring
SF
Other All Markets
2022
Thereafter
Expiring
SF
2021
2022
Thereafter
Atlanta
SF
2020
Expiring
2020
Unaudited (SF & $ in thousands) (at 12/31/2017)
Tenant
Credit Rating
(2)
Number of
Properties
Annualized Lease
Revenue (ALR) (3) % of ALR
Leased
Square
Footage
% of Leased
Square
Footage
Remaining
Lease Term
Years (4)
AT&T Corporation/AT&T Services BBB+ 1 22,579$ 5.9% 955 12.2% 3.0
Wells Fargo Bank N.A. AA- 3 20,522 5.4% 522 6.7% 8.3
Pershing LLC A 1 18,251 4.8% 471 6.0% 3.5
Twitter BB- 1 15,894 4.1% 215 2.7% 7.3
NYU AA- 1 15,277 4.0% 390 5.0% 30.5
Westinghouse Electric Company Not Rated 1 14,570 3.8% 824 10.5% 14.9
Yahoo! BB+ 1 14,556 3.8% 193 2.5% 7.5
Newell Rubbermaid, Inc. BBB- 1 9,370 2.4% 411 5.2% 2.4
Snap Inc. Not Rated 1 9,268 2.4% 121 1.5% 15.0
DocuSign, Inc. Not Rated 1 9,201 2.4% 120 1.5% 6.6
WeWork Companies Inc. Not Rated 2 7,363 1.9% 129 1.6% 13.1
DLA Piper US, LLP Not Rated 1 6,800 1.8% 92 1.2% 5.5
Amazon Web Services, Inc. AA- 1 6,455 1.7% 70 0.9% 3.5
Affirm, Inc. Not Rated 1 5,599 1.5% 86 1.1% 8.2
Oracle America, Inc. AA- 2 5,332 1.4% 102 1.3% 4.9
Room & Board Not Rated 1 5,183 1.4% 60 0.8% 16.8
Quality Technology Services Not Rated 1 5,180 1.3% 128 1.6% 8.8
MongoDB, Inc. Not Rated 1 4,741 1.2% 64 0.8% 1.0
Credit Suisse A 1 4,500 1.2% 62 0.8% 2.3
BDG Media Not Rated 1 4,348 1.1% 51 0.6% 10.8
Subtotal - Top 20 204,989$ 53.5% 5,066 64.5% 9.1
All other 178,188 46.5% 2,785 35.5% 6.3
Total 383,177$ 100.0% 7,851 100.0% 8.0
(1) Pro forma for the planned return of 263 Shuman Boulevard to the lender.
(2) Credit rating may reflect the credit rating of the parent or a guarantor. Only the Standard & Poor's credit rating has been provided.
(3) Reflects CXP's ownership share of ALR for properties held in unconsolidated joint ventures.
(4) Weighted average based on CXP's share of Annualized Lease Revenue.
Supplemental Information - Q4 2017 26
Columbia Property Trust, Inc.
Top 20 Tenants & Tenant Industry Profile (1)
23.0%
11.0%
7.5%
6.8%6.1%
5.9%
5.6%
4.7%
3.0%
2.9%
23.5%
Tenant Industry Profile (2)
Business Services
Depository Institutions
Legal Services
Electric, Gas, and
Sanitary Services
Communication
Engineering and
Management Services
Security and
Commodity Brokers
Health Services
Other
Real Estate
Nondepository Institutions
Unaudited ($ in thousands)
Acquisitions
Location
Acquisition
Date
Percent
Ownership Purchase Price
Rentable Square
Footage $ / SF
% Leased at
Acquisition
149 Madison New York, NY 11/28/2017 100.0% 87,700$ 127,000 691$ 0.0%
218 West 18th Street New York, NY 10/11/2017 100.0% 174,700 165,670 100.0%
245-249 West 17th Street New York, NY 10/11/2017 100.0% 339,400 281,294 100.0%
Subtotal (2 Property Portfolio) 514,100 446,964 1,150
229 West 43rd Street New York, NY 8/4/2015 100.0% 516,000 481,110 1,073 97.7%
315 Park Avenue South New York, NY 1/7/2015 100.0% 372,000 326,812 1,138 93.9%
1881 Campus Commons Reston, VA 1/7/2015 100.0% 64,000 244,565 262 78.0%
Subtotal (2 Property Portfolio) 436,000 571,377 763
116 Huntington Avenue Boston, MA 1/8/2015 100.0% 152,000 270,943 561 77.8%
Total - Acquisitions (excluding Joint Ventures) 1,705,800$ 1,897,394
Location Closing Date % Purchased
Purchase
Value
Rentable Square
Footage $ / SF
% Leased at
Closing Date
1800 M Street Washington, D.C. 10/11/2017 55% 421,000$ 580,930 725$ 94.0%
114 5th Avenue New York, NY 7/6/2017 49.5% 220,000 351,451 626 100.0%
Total - Joint Ventures 641,000$ 932,381
Supplemental Information - Q4 2017 27
Columbia Property Trust, Inc.
Transaction Activity (1/1/15 - 2/15/18) - Acquisitions
Property Name
Property Purchased
in Joint Venture
Unaudited ($ in thousands)
Dispositions
Location
Disposition
Date
Percent
Ownership
Gross Sale
Price
Rentable Square
Footage $ / SF
% Leased at
Disposition
Key Center Tower Cleveland, OH 1/31/2017 100.0% 1,326,153 81.8%
Key Center Marriott Cleveland, OH 1/31/2017 100.0% NA
Subtotal (2 Property Portfolio) 267,500$ 1,326,153 NA
5 Houston Center Houston, TX 1/6/2017 100.0% 580,875 75.4%
Energy Center Houston, TX 1/6/2017 100.0% 332,000 100.0%
515 Post Oak Houston, TX 1/6/2017 100.0% 273,710 79.6%
Subtotal (3 Property Portfolio) 272,000 1,186,585 229$ 83.2%
SanTan Corporate Center Phoenix, AZ 12/15/2016 100.0% 58,500 266,531 219 100.0%
Sterling Commerce Dallas, TX 11/30/2016 100.0% 51,000 309,586 165 100.0%
9127 S. Jamaica Street Denver, CO 10/12/2016 100.0% 19,500 107,638 181 0.0%
80 Park Plaza Northern New Jersey 9/30/2016 100.0% 174,500 960,689 182 85.8%
9189, 9191 & 9193 S. Jamaica Street Denver, CO 9/22/2016 100.0% 122,000 370,485 329 100.0%
800 North Frederick Suburban Maryland 7/8/2016 100.0% 48,000 393,000 122 0.0%
100 East Pratt Baltimore, MD 3/31/2016 100.0% 187,000 653,135 286 98.5%
1881 Campus Commons Reston, VA 12/10/2015 100.0% 65,000 244,565 266 91.4%
180 Park Avenue Northern New Jersey 7/1/2015 100.0% 223,837 71.4%
170 Park Avenue Northern New Jersey 7/1/2015 100.0% 145,000 0.0%
1580 West Nursery Road Baltimore, MD 7/1/2015 100.0% 315,350 100.0%
Acxiom Chicago, IL 7/1/2015 100.0% 321,852 100.0%
Highland Landmark III Chicago, IL 7/1/2015 100.0% 272,975 68.1%
The Corridors III Chicago, IL 7/1/2015 100.0% 221,940 95.0%
215 Diehl Road Chicago, IL 7/1/2015 100.0% 161,865 100.0%
544 Lakeview Chicago, IL 7/1/2015 100.0% 139,218 51.1%
Bannockburn Lake III Chicago, IL 7/1/2015 100.0% 106,495 0.0%
Robbins Road Boston, MA 7/1/2015 100.0% 458,237 100.0%
550 King Street Boston, MA 7/1/2015 100.0% 490,119 100.0%
Subtotal (11 Property Portfolio) 433,250 2,856,888 152
Total - Dispositions (excluding Joint Ventures) 1,698,250$ 8,675,255
Location Closing Date
% Sold /
Retained
Contributed
Value
Rentable Square
Footage $ / SF
% Leased at
Closing Date
University Circle San Francisco, CA 45% / 55% 540,000$ 451,287 1,197$ 100.0%
333 Market Street San Francisco, CA 45% / 55% 500,000 657,114 761 100.0%
Subtotal (2 Property Portfolio) 1,040,000$ 1,108,401 938 100.0%
Market Square Washington, D.C. 10/28/2015 49% / 51% 595,000 687,310 866 80.5%
Total - Joint Ventures 1,635,000$ 1,795,711
Supplemental Information - Q4 2017 28
(1) A 22.5% ownership interest in both properties was sold within the Allianz joint venture on July 6, 2017 with an additional 22.5% ownership interest closing on
February 1, 2018.
Columbia Property Trust, Inc.
Transaction Activity (1/1/15 - 2/15/18) - Dispositions
Property Name
Property Contributed
to Joint Venture
7/6/2017 &
2/1/2018 (1)
Unaudited (in thousands, except per-share amounts)
12/31/2017 12/31/2016 12/31/2017 9/30/2017 6/30/2017 3/31/2017 12/31/2016
Net Income 176,041$ 84,281$ (1,348)$ 101,534$ 1,133$ 74,722$ 27,400$
Depreciation 80,394 108,543 19,865 18,501 20,423 21,605 24,026
Amortization 32,403 56,775 7,885 6,870 8,191 9,457 13,873
21,288 8,776 9,887 7,180 2,123 2,098 2,106
Gain on sale of real estate assets (175,518) (72,325) - (102,365) - (73,153) (22,242)
FFO 134,608$ 186,050$ 36,289$ 31,720$ 31,870$ 34,729$ 45,163$
Non-cash carrying costs for Shuman Boulevard 3,420 - 1,903 1,517 - - -
Loss on early extinguishment of debt 325 18,997 - 280 - 45 -
Normalized FFO 138,353$ 205,047$ 38,192$ 33,517$ 31,870$ 34,774$ 45,163$
Normalized FFO per share (basic) 1.15$ 1.67$ 0.32$ 0.28$ 0.26$ 0.29$ 0.37$
Normalized FFO per share (diluted) 1.14$ 1.66$ 0.32$ 0.28$ 0.26$ 0.28$ 0.37$
120,795 123,130 119,383 120,293 121,534 122,003 122,709
121,159 123,228 119,841 120,529 121,909 122,329 122,855
Unaudited (in thousands, except per-share amounts)
12/31/2017 12/31/2016 12/31/2017 9/30/2017 6/30/2017 3/31/2017 12/31/2016
Net Cash Provided by Operating Activities 61,924$ 193,091$ 14,809$ 11,152$ 30,565$ 5,398$ 43,387$
22,296 (1,248) 13,069 10,116 (209) (680) (968)
Distributions from unconsolidated joint ventures (3,681) - (3,681) - - - -
Net changes in operating assets and liabilities 34,337 (4,903) 4,847 6,786 (2,182) 24,886 (3,140)
Maintenance capital (1) (2) (36,245) (112,194) (11,742) (11,076) (11,752) (1,675) (82,311)
AFFO 78,631$ 74,746$ 17,302$ 16,978$ 16,422$ 27,929$ (43,032)$
120,795 123,130 119,383 120,293 121,534 122,003 122,709
121,159 123,228 119,841 120,529 121,909 122,329 122,855
Supplemental Information - Q4 2017 29
Columbia Property Trust, Inc.
Reconciliation of Net Income to Normalized Funds From Operations (NFFO)
Twelve Months Ended Three Months Ended
Adjustments included in loss from unconsolidated
joint venture
Weighted-average common shares outstanding - basic
Adjustments included in loss from unconsolidated
joint venture
(2) Reflects CXP's ownership share of capital expenditures for properties held in unconsolidated joint ventures (see page 18).
Weighted-average common shares outstanding - basic
Weighted-average common shares outstanding - diluted
(1) See page 33 of this supplemental report for a description of Maintenance Capital and page 14 for a detail of all capital expenditures.
Weighted-average common shares outstanding - diluted
Reconciliation of Cash Flows From Operations to Adjusted Funds From Operations (AFFO)
Twelve Months Ended Three Months Ended
Unaudited (in thousands)
12/31/2017 12/31/2016 12/31/2017 9/30/2017 6/30/2017 3/31/2017 12/31/2016
Net Operating Income (based on GAAP rents) 228,875$ 306,101$ 63,170$ 53,445$ 54,684$ 57,576$ 68,388$
(31,932) (19,984) (11,578) (8,307) (5,893) (6,154) (6,152)
668 (2,292) 997 1,095 (521) (903) (963)
(494) (4,244) (93) 457 (271) (587) (611)
(2,335) (221) (1,321) (1,018) - 4 3
Net Operating Income (based on cash rents) 194,782$ 279,360$ 51,175$ 45,672$ 47,999$ 49,936$ 60,665$
Unaudited (in thousands)
12/31/2017 12/31/2016 12/31/2017 9/30/2017 6/30/2017 3/31/2017 12/31/2016
FFO 134,608$ 186,050$ 36,289$ 31,720$ 31,870$ 34,729$ 45,163$
Non-cash carrying costs for Shuman Boulevard 3,420 - 1,903 1,517 - - -
Loss on early extinguishment of debt 325 18,997 - 280 - 45 -
Normalized FFO 138,353$ 205,047$ 38,192$ 33,517$ 31,870$ 34,774$ 45,163$
Above/below lease market amortization, net (494) (4,244) (93) 457 (271) (587) (611)
Straight-line rental income (32,737) (19,512) (11,772) (8,501) (6,087) (6,377) (6,152)
Stock based compensation expense in G&A 7,580 4,558 2,072 1,555 2,262 1,691 1,046
Non-cash interest expense 3,009 3,549 769 749 720 771 784
Straight-line land rent expense 805 - 194 194 194 223 -
(1,640) (2,458) (318) 83 (514) (891) (951)
Total other non-cash adjustments (23,477) (18,107) (9,148) (5,463) (3,696) (5,170) (5,884)
Maintenance capital (1) (36,245) (112,194) (11,742) (11,076) (11,752) (1,675) (82,311)
AFFO 78,631$ 74,746$ 17,302$ 16,978$ 16,422$ 27,929$ (43,032)$
120,795 123,130 119,383 120,293 121,534 122,003 122,709
121,159 123,228 119,841 120,529 121,909 122,329 122,855
Supplemental Information - Q4 2017 30
Columbia Property Trust, Inc.
Reconciliation of Net Operating Income (based on GAAP rents) to Net Operating Income (based on cash rents)
Twelve Months Ended Three Months Ended
Above/below lease market amortization, net (wholly-
owned)
Straight-line rental income, net (joint venture)
Straight-line rental income, net (wholly-owned)
Above/below lease market amortization, net (joint
venture)
Reconciliation of Funds From Operations (FFO) to Adjusted Funds From Operations (AFFO)
Other non-cash adjustments included in loss from
unconsolidated joint venture
Weighted-average common shares outstanding - basic
Weighted-average common shares outstanding - diluted
Twelve Months Ended Three Months Ended
Unaudited (in thousands)
12/31/2017 12/31/2016 12/31/2017 9/30/2017 6/30/2017 3/31/2017 12/31/2016
Net Income 176,041$ 84,281$ (1,348)$ 101,534$ 1,133$ 74,722$ 27,400$
Interest expense (net) 58,187 67,538 16,147 13,690 13,785 14,565 15,158
Interest income from development authority bonds (7,200) (7,200) (1,800) (1,800) (1,800) (1,800) (1,800)
Income tax (benefit) expense (213) 445 165 3 7 (388) 58
Depreciation 80,394 108,543 19,865 18,501 20,423 21,605 24,026
Amortization 32,403 56,775 7,885 6,870 8,191 9,457 13,873
29,726 17,213 11,999 9,286 4,233 4,208 4,216
EBITDA 369,338$ 327,595$ 52,913$ 148,084$ 45,972$ 122,369$ 82,931$
(Gain) loss on sale of real estate assets (175,518) (72,325) - (102,365) - (73,153) (22,242)
Loss on early extinguishment of debt 325 18,997 - 280 - 45 -
Adjusted EBITDA 194,145$ 274,267$ 52,913$ 45,999$ 45,972$ 49,261$ 60,689$
Asset & property management fee income (3,782) (2,122) (1,656) (1,154) (498) (474) (467)
General and administrative - corporate 34,966 33,876 9,963 7,034 9,201 8,768 8,158
1,454 - 741 713 - - -
Straight line rental income (net) (31,932) (19,984) (11,578) (8,307) (5,893) (6,154) (6,152)
Above/below lease market amortization, net (494) (4,244) (93) 457 (271) (587) (611)
425 (2,433) 885 930 (512) (878) (952)
Net Operating Income (based on cash rents) 194,782$ 279,360$ 51,175$ 45,672$ 47,999$ 49,936$ 60,665$
(48,207) (45,670) (12,734) (12,176) (12,219) (11,078) (10,785)
Less Net Operating Income from:
Acquisitions (2) (10,222) - (8,729) (1,493) - - -
Dispositions (3) (6,627) (82,665) 379 (287) (2,894) (3,825) (16,723)
129,726$ 151,025$ 30,091$ 31,716$ 32,886$ 35,033$ 33,157$
Supplemental Information - Q4 2017 31
(4) Reflects NOI from properties that were wholly-owned for the entirety of the periods presented.
(1) Reflects CXP's ownership share of NOI for properties held in unconsolidated joint ventures (see page 18).
(2) Reflects activity for the following properties acquired since January 1, 2016, for all periods presented: 1800 M Street (55% share), 218 West 18th Street, 245-
249 West 17th Street, and 114 5th Avenue (49.5% share).
Columbia Property Trust, Inc.
Reconciliation of Net Income to Net Operating Income (based on cash rents), and Same Store Net Operating
Income (based on cash rents) - wholly-owned properties
Twelve Months Ended Three Months Ended
Same Store Net Operating Income (based on cash rents)
wholly-owned properties (4)
Same Store Net Operating Income (based on cash rents)
CXP Ownership of Properties in Unconsolidated Joint
Ventures (1)
Adjustments included in loss from unconsolidated
joint venture
Adjustments included in loss from unconsolidated
joint venture
(3) Reflects activity for the following properties sold since January 1, 2016, for all periods presented: University Circle (22.5% share), 333 Market Street (22.5%
share), Key Center Tower, Key Center Marriott, 5 Houston Center, Energy Center, 515 Post Oak, SanTan Corporate Center, Sterling Commerce, 80 Park Plaza, 9127,
9189, 9191 & 9193 S. Jamaica Street, 800 North Frederick, and 100 East Pratt.
General and administrative - unconsolidated joint
ventures
Unaudited (in thousands)
12/31/2017 12/31/2016 12/31/2017 9/30/2017 6/30/2017 3/31/2017 12/31/2016
Net Income 176,041$ 84,281$ (1,348)$ 101,534$ 1,133$ 74,722$ 27,400$
Interest expense (net) 58,187 67,538 16,147 13,690 13,785 14,565 15,158
Interest income from development authority bonds (7,200) (7,200) (1,800) (1,800) (1,800) (1,800) (1,800)
Income tax (benefit) expense (213) 445 165 3 7 (388) 58
Depreciation 80,394 108,543 19,865 18,501 20,423 21,605 24,026
Amortization 32,403 56,775 7,885 6,870 8,191 9,457 13,873
29,726 17,213 11,999 9,286 4,233 4,208 4,216
EBITDA 369,338$ 327,595$ 52,913$ 148,084$ 45,972$ 122,369$ 82,931$
(Gain) loss on sale of real estate assets (175,518) (72,325) - (102,365) - (73,153) (22,242)
Loss on early extinguishment of debt 325 18,997 - 280 - 45 -
Adjusted EBITDA 194,145$ 274,267$ 52,913$ 45,999$ 45,972$ 49,261$ 60,689$
Asset & property management fee income (3,782) (2,122) (1,656) (1,154) (498) (474) (467)
General and administrative - corporate 34,966 33,876 9,963 7,034 9,201 8,768 8,158
1,454 - 741 713 - - -
2,092 80 1,209 853 9 21 8
Net Operating Income (based on GAAP rents) 228,875$ 306,101$ 63,170$ 53,445$ 54,684$ 57,576$ 68,388$
(51,665) (49,522) (13,147) (13,079) (13,099) (12,340) (12,050)
Less Net Operating Income from:
Acquisitions (2) (10,793) - (10,260) (533) - - -
Dispositions (3) (6,847) (92,240) 379 (292) (2,998) (3,936) (16,170)
159,570$ 164,339$ 40,142$ 39,541$ 38,587$ 41,300$ 40,168$
(1) Reflects CXP's ownership share of NOI for properties held in unconsolidated joint ventures (see page 18).
Supplemental Information - Q4 2017 32
(4) Reflects NOI from properties that were wholly-owned for the entirety of the periods presented.
(3) Reflects activity for the following properties sold since January 1, 2016, for all periods presented: University Circle (22.5% share), 333 Market Street (22.5%
share), Key Center Tower, Key Center Marriott, 5 Houston Center, Energy Center, 515 Post Oak, SanTan Corporate Center, Sterling Commerce, 80 Park Plaza, 9127,
9189, 9191 & 9193 S. Jamaica Street, 800 North Frederick, and 100 East Pratt.
(2) Reflects activity for the following properties acquired since January 1, 2016, for all periods presented: 1800 M Street (55% share), 218 West 18th Street, 245-
249 West 17th Street, and 114 5th Avenue (49.5% share).
Columbia Property Trust, Inc.
Reconciliation of Net Income to Net Operating Income (based on GAAP rents), and Same Store Net Operating
Income (based on GAAP rents) - wholly-owned properties
Twelve Months Ended Three Months Ended
Same Store Net Operating Income (based on GAAP rents)
wholly-owned properties (4)
Same Store Net Operating Income (based on GAAP rents)
CXP Ownership of Properties in Unconsolidated Joint
Ventures (1)
Adjustments included in loss from unconsolidated
joint venture
Adjustments included in loss from unconsolidated joint
venture
General and administrative - unconsolidated joint ventures
Supplemental Information - Q4 2017 33
EBITDA: EBITDA is defined as net income before interest, taxes, depreciation and amortization. We believe EBITDA is a reasonable measure of our liquidity.
EBITDA is a non-GAAP financial measure and should not be viewed as an alternative measurement of cash flows from operating activities or other GAAP basis
liquidity measures. Other REITs may calculate EBITDA differently and our calculation should not be compared to that of other REITs.
Columbia Property Trust, Inc.
Definitions - Non-GAAP Financial Measures
Included in this supplemental report are non-GAAP financial measures, which are accompanied by what we consider the most directly comparable financial
measures calculated and presented in accordance with GAAP. These measures include earnings (or components of earnings), as defined, from both continuing
operations and discontinued operations. A description of the non-GAAP financial measures we present and a statement of the reasons why management believes
the non-GAAP measures provide useful information to investors about the company's financial condition and results of operations can be found below.
Adjusted Funds From Operations (“AFFO”): AFFO is calculated by adjusting Cash Flow from Operations to exclude (i) changes in assets and liabilities resulting
from timing differences (ii) additional amortization of lease assets (liabilities), (iii) straight-line rental income, (iv) gain (loss) on interest rate swaps, (v) recurring
capital expenditures, and adding back (vi) stock based compensation expense and (vii) non-cash interest expense. Because AFFO adjusts for income and expenses
that we believe are not reflective of our core operations, we believe AFFO provides useful supplemental information. AFFO is a non-GAAP financial measure and
should not be viewed as an alternative measurement of our operating performance to net cash flows from operating activities or net income.
Adjusted EBITDA: Adjusted EBITDA is defined as net income before interest, taxes, depreciation and amortization and incrementally removing any impairment
losses, gains or losses from sales of property, real estate acquisition-related costs, discontinued operations adjustments, or other extraordinary items. We do not
include impairment losses in this measure because we feel these types of losses create volatility in our earnings and make it difficult to determine the earnings
generated by our ongoing business. We believe adjusted EBITDA is a reasonable measure of our liquidity. Adjusted EBITDA is a non-GAAP financial measure and
should not be viewed as an alternative measurement of cash flows from operating activities or other GAAP basis liquidity measures. Other REITs may calculate
adjusted EBITDA differently and our calculation should not be compared to that of other REITs.
Annualized Lease Revenue (“ALR”): ALR is the sum of (i) annualized rental payments (defined as base rent plus operating expense reimbursements, excluding
rental abatements) for executed and commenced leases as well as leases executed but not yet commenced for vacant space, and (ii) annualized parking revenues,
payable either under the terms of an executed lease or vendor contract. ALR excludes rental payments for executed leases that have not yet commenced for
space covered by an existing lease.
Maintenance Capital: Capital expenditures incurred to maintain the building structure and functionality, and to lease space at our properties in their current
condition. Maintenance capital excludes capital for recent acquisitions and first generation leasing.
Investment Capital: Capital expenditures incurred to lease space to first generation tenants; to lease space that has been vacant for more than one year; to
expand or repurpose building functionality in our existing portfolio; and to bring properties up to our ownership standards. We establish our ownership standards
based on Class A office property characteristics typical for the respective local market, including level of finishes, systems, accessibility, and defined market
presence. All costs incurred within 36 months of acquisition are considered Investment Capital.
Funds From Operations (“FFO”): FFO, as defined by the National Association of Real Estate Investment Trusts (“NAREIT”), represents net income (computed in
accordance with GAAP), plus depreciation of real estate assets and amortization of lease-related costs, excluding gains (losses) on sales of real estate and
impairment losses on real estate assets. The Company computes FFO in accordance with NAREIT's definition, which may differ from the methodology for
calculating FFO, or similarly titled measures, used by other companies and this may not be comparable to those presentations. We consider FFO an appropriate
supplemental performance measure given its wide use by and relevance to investors and analysts. FFO, reflecting the assumption that real estate asset values rise
or fall with market conditions, principally adjusts for the effects of GAAP depreciation and amortization of real estate assets, which assume that the value of real
estate diminishes predictably over time.
Normalized FFO: We calculate Normalized FFO by starting with FFO, as defined by NAREIT, and adjusting for certain items that are not reflective of our core
operations, including: (i) real estate acquisition-related costs, (ii) listing costs, (iii) loss on interest rate swaps and (iv) loss on early extinguishment of debt. Such
items create significant earnings volatility. We believe Normalized FFO provides a meaningful measure of our operating performance and more predictability
regarding future earnings potential. Normalized FFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating
performance to net income; therefore, it should not be compared to other REITs' equivalent to Normalized FFO.
Net Operating Income (based on cash rents) (“NOI - cash rents”): NOI - cash rents is defined as Adjusted EBITDA adjusted for (i) portfolio general and
administrative expense, (ii) interest rate swap valuation adjustments, (iii) interest expense associated with interest rates swaps, (iv) non-cash property operations,
(v) straight-line rental income, and (vi) net effect of above/(below) market amortization. The company uses this measure to assess its operating results and
believes it is important in assessing operating performance. NOI - cash rents is a non-GAAP measure which does not have any standard meaning prescribed by
GAAP and therefore may not be comparable to similar measures presented by other companies.
Net Operating Income (based on GAAP rents) (“NOI - GAAP rents”): NOI - GAAP rents is defined as Adjusted EBITDA adjusted for (i) portfolio general and
administrative expense, (ii) interest rate swap valuation adjustments, and (iii) interest expense associated with interest rates swaps. The company uses this
measure to assess its operating results and believes it is important in assessing operating performance. NOI - GAAP rents is a non-GAAP measure which does not
have any standard meaning prescribed by GAAP and therefore may not be comparable to similar measures presented by other companies.
Same Store Net Operating Income (“Same Store NOI”): Same Store NOI is calculated as the NOI attributable to the properties continuously owned and operating
for the entirety of the reporting periods presented. We believe Same Store NOI is an important measure of comparison of our stabilized properties’ operating
performance. Other REITs may calculate Same Store NOI differently and our calculation should not be compared to that of other REITs.
Definitions - Other