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Index to Financial Statements


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 _______________________________________________
FORM 10-K
 _______________________________________________

FORM 10-K
(mark one)
xAnnual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
for the fiscal year ended December 31, 20172019
OR
oOR
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
for the transition period from ______ to ______
Commission file number 001-36113 (Columbia Property Trust, Inc.)
Commission file number 333-175623 (Columbia Property Trust Operating Partnership, L.P.)
cxp-20191231_g1.jpg
COLUMBIA PROPERTY TRUST, INC.
COLUMBIA PROPERTY TRUST OPERATING PARTNERSHIP, L.P.
(Exact name of registrant as specified in its charter)

Maryland (Columbia Property Trust, Inc.)20-0068852
Delaware (Columbia Property Trust Operating Partnership, L.P.)20-0068907
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification Number)
1170 Peachtree Street NE, Suite 600315 Park Avenue South
Atlanta, Georgia 30309New York, New York 10010
(Address of principal executive offices) (Zip Code)
(404) 465-2200
(212) 687-0800
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12 (b) of the Act:
Title of each classTrading SymbolName of exchange on which registered
Common Stock, $0.01 par valueCXPNew York Stock Exchange
Securities registered pursuant to Section 12 (g) of the Act: None
Securities registered pursuant



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Index to Section 12 (g) of the Act: NoneFinancial Statements
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Columbia Property Trust, Inc.
Yes  ☒    No  ☐
Columbia Property Trust Operating Partnership, L.P.
Yes  ☒    No  ☐
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act.
Columbia Property Trust, Inc.
Yes  ☐    No  ☒
Columbia Property Trust Operating Partnership, L.P.
Yes  ☐    No  ☒
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Columbia Property Trust, Inc.
Yes  ☒    No  ☐
Columbia Property Trust Operating Partnership, L.P.
Yes  ☒    No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Columbia Property Trust, Inc.
Yes  ☒    No  ☐
Columbia Property Trust Operating Partnership, L.P.
Yes  ☒    No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer", "accelerated filer", "smaller reporting company", "emerging growth company" in Rule 12b-2 of the Exchange Act.
Columbia Property Trust, Inc.:
Large accelerated filer
Smaller reporting company
Accelerated filero
Emerging Growth Company
Non-accelerated filer o
Columbia Property Trust Operating Partnership, L.P.
Large accelerated filer o
Smaller reporting company
Accelerated filero
Emerging Growth Company
Non-accelerated filer
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Columbia Property Trust, Inc.Columbia Property Trust Operating Partnership, L.P.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).
Columbia Property Trust, Inc.
Yes  ☐    No  ☒
Columbia Property Trust Operating Partnership, L.P.
Yes  ☐    No  ☒
Yes  x No  o
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act.
Yes  o No  x
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes  x No  o
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes  x No  o
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. x
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer", "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer x Accelerated filer o Non-accelerated filer o Smaller reporting company o Emerging Growth Company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).
Yes  o No  x
As of June 30, 2017,2019, the aggregate market value of the common stock of Columbia Property Trust, Inc. held by non-affiliates was
$2,286,239,0001,744,911,617 based on the closing price as reported by the New York Stock Exchange.

As of January 31, 2018, 119,897,7772020, 115,232,240 shares of common stock were outstanding.

Registrant incorporates by reference portions of the Columbia Property Trust, Inc. Definitive Proxy Statement for the 20182020 Annual Meeting of Stockholders (Items 10, 11, 12, 13, and 14 of Part III) to be filed prior to April 30, 2018.
29, 2020.




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FORM 10-K
COLUMBIA PROPERTY TRUST, INC.
COLUMBIA PROPERTY TRUST OPERATING PARTNERSHIP, L.P.
TABLE OF CONTENTS
 
Page
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Item 1A.
Item 1B.
Item 2.
Item 3.
Item 4.
Page No.
Item 1.
Item 1A.
Item 1B.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.
Item 7.
Item 7A.
Item 8.
Item 9.
Item 9A.
Item 9B.
Item 10.
Item 11.
Item 12.
Item 13.
Item 14.
Item 15.







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EXPLANATORY NOTE

This report combines the annual reports on Form 10-K for the year ended December 31, 2019 of Columbia Property Trust, Inc. ("Columbia Property Trust") and Columbia Operating Partnership, L.P. ("Columbia OP"), using a separate set of consolidated financial statements for each entity and a combined set of notes thereto. As of December 31, 2019 and December 31, 2018, and for the three-years ended December 31, 2019, Columbia Property Trust was the sole owner and general partner of Columbia OP. On January 24, 2020, Columbia Property Trust acquired Normandy Real Estate Management, LLC ("Normandy") for $100.0 million, which was comprised of a $13.5 million cash payment and the issuance of 3,264,151 Series A Convertible, Perpetual Preferred Units of Columbia OP. Immediately following the Normandy acquisition, Columbia Property Trust owned approximately 97.2% of Columbia OP. Unless stated otherwise or the context otherwise requires, references to "Columbia Property Trust," "the Company," "we," "us," and "our" shall mean, collectively, Columbia Property Trust, Inc., Columbia OP, and the entities consolidated by the Company; and references to "Columbia OP" shall mean Columbia OP and the entities consolidated by Columbia OP.
Columbia Property Trust, Inc. guarantees certain debt issued by Columbia OP (see Note 6, Bonds Payable, to the accompanying consolidated financial statements). The Company is including audited consolidated financial statements for Columbia OP, the subsidiary issuer as defined in the bond indentures, in this report on Form 10-K to comply with the requirements of SEC Rule 3-10(c). In prior periods, in lieu of presenting separate financial statements for Columbia OP, the Company opted to present condensed consolidating financial information in a footnote to Columbia Property Trust's consolidated financial statements. Columbia OP is voluntarily co-filing its annual report with that of Columbia Property Trust because, following the Normandy acquisition described above, the Company will no longer be able to rely on Rule 3-10(c), and Columbia OP will become subject to the reporting requirements of the Securities Exchange Act of 1934, as amended, or the Exchange Act.
Columbia OP is the entity through which we conduct substantially all of our business and own, either directly or through subsidiaries, substantially all of our assets. We believe that combining the two annual reports on Form 10-K for Columbia Property Trust and Columbia OP provides the following benefits:
enhances investors' understanding of Columbia Property Trust and Columbia OP by enabling investors to view the business as a whole in the same manner that management views and operates the business;
eliminates duplicative disclosure and provides a more streamlined and readable presentation, since a substantial portion of the disclosure applies to both the Company and the Operating Partnership; and
creates time and cost efficiencies through the preparation of one combined report instead of two separate reports.
The Company believes that it is important to understand the differences between Columbia Property Trust and Columbia OP in the context of how Columbia Property Trust and Columbia OP operate as a consolidated company. The financial results of Columbia OP are consolidated into the financial statements of Columbia Property Trust. Columbia Property Trust does not have significant assets, liabilities, or operations, other than its investment in Columbia OP. Columbia OP, not Columbia Property Trust, generally conducts all significant business relationships for the Company other than transactions involving the securities of Columbia Property Trust. The primary differences between Columbia Property Trust and Columbia OP involve the following:
Columbia Property Trust owned two properties directly during the periods presented;
Columbia Property Trust has made intercompany loans to certain of its consolidated subsidiaries;
Columbia Property Trust has issued common stock to investors and employees, and has repurchased its common stock. The substantial majority of Columbia Property Trust's net common stock proceeds have been contributed to Columbia OP.
To help investors better understand the differences between Columbia Property Trust and Columbia OP, the following information has been presented separately for Columbia Property Trust and Columbia OP in this report:
consolidated financial statements;
certain accompanying notes to consolidated financial statements, including Note 5, Line of Credit and Notes Payable; Note 6, Bonds Payable; and Note 8, Stockholders' Equity and Partner's Capital.

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controls and procedures in Item 9A of Part II of this report; and
certifications of the Chief Executive Officer and Chief Financial Officer included as Exhibits 31.1 through 32.2.


CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained in this Form 10-K of Columbia Property Trust, Inc. and its subsidiaries, including Columbia OP ("Columbia Property Trust," "we," "our," or "us"), other than historical facts may constitute "forward-looking statements” within the meaning of the Private Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934). We intend for all such forward-looking statements presented in this annual report on Form 10-K ("Form 10-K"), or that management may make orally or in writing from time to time, to be covered by the applicable safe harbor provisions for forward- lookingforward-looking statements contained in those acts.
Such statements in this Form 10-K include, among other things, information about possible or assumed future results of the business and our financial condition, liquidity, results of operations, plans, strategies, prospects, and objectives. Such forward- lookingforward-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. As forward-looking statements, these statements are subject to certain risks and uncertainties, including known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. These risks, uncertainties, and other factors include, without limitation:
risks affecting the real estate industry and the office sector, in particular (such as the inability to enter into new leases, dependence on tenants’tenants' financial condition, and competition from other owners of real estate);
risks relating to lease terminations, lease defaults, or changes in the financial condition of our tenants, particularly by a significant tenant;
risks relating to our ability to maintain and increase property occupancy rates and rental rates;
adverse economic or real estate market developments in our target markets;
risks relating to the use of debt to fund acquisitions;
availability and terms of financing;
ability to refinance indebtedness as it comes due;
sensitivity of our operations and financing arrangements to fluctuations in interest rates;
reductions in asset valuations and related impairment charges;
risks relating to construction, development, and redevelopment activities;
risks associated with joint ventures;ventures, including disagreements with, or misconduct by, joint venture partners;
risks relating to repositioning our portfolio;
risks relating to construction and development activities;reduced demand for, or over supply of, office space in our markets;
risks relating to acquisition and disposition activities;
ability to successfully integrate our operations and employees in connection with the acquisition of Normandy Real Estate Management ("Normandy");
ability to realize anticipated benefits and synergies of the acquisition of Normandy;
amount of the costs, fees, expenses, and charges related to the acquisition of Normandy;
risks associated with joint venture relationships;
existence of complex regulations relatingour ability to our statuscontinue to qualify as a real estate investment trust ("REIT");
risks associated with possible cybersecurity attacks against us or any of our potential failure to qualify as a REIT;tenants;
potential liability for uninsured losses and environmental contamination;
potential adverse impact of market interest rates on the market price for our securities; and
risks associated with our dependence on key personnel whose continued service is not guaranteed.
For further discussion of these and additional risks and uncertainties that may cause actual results to differ from expectation,

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expectations, see Item 1A, Risk Factors, and other information contained in this Form 10-K and our other periodic reports filed with the SEC. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, we can give no assurances that our expectations will be achieved. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date this Form 10-K is filed with the U.S. Securities and Exchange Commission ("SEC"). We do not intend to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.





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PART I
ITEM 1.BUSINESS
ITEM 1.BUSINESS
General
Columbia Property Trust, Inc. ("Columbia Property Trust") (NYSE: CXP) is a Maryland corporation that operates as a real estate investment trust ("REIT") for federal income tax purposes and owns and operates commercial real estate properties. Columbia Property Trust was incorporated in 2003, commenced operations in 2004, and conducts business primarily through Columbia Property Trust Operating Partnership, L.P. ("Columbia Property Trust OP"), a Delaware limited partnership.partnership of which Columbia Property Trust is the general partner and sole owner as of December 31, 2019. Columbia Property Trust OP and possesses full legal control and authority over its operations. Columbia Property Trust OP acquires, develops, redevelops, owns, leases, and operates real properties directly and through wholly and partially owned subsidiaries and through unconsolidated joint ventures. Unless stated otherwise noted herein,or the context otherwise requires, references to "Columbia Property Trust," "the Company," "we," "us," and "our" shall mean, collectively, Columbia Property Trust, "we," "us," or "our" herein shall includeColumbia OP, and the entities consolidated by both Columbia Property Trust and all subsidiaries of Columbia Property Trust, directOP; and indirect.references to "Columbia OP" shall mean Columbia OP and the entities consolidated by Columbia OP.
Columbia Property Trust typically invests in high-quality, income-generating office properties. As of December 31, 2017, Columbia Property Trust2019, the Company owned 1917 operating properties and three properties under development or redevelopment, of which 1413 were wholly owned and fiveseven were owned through unconsolidated joint ventures. These properties areventures, located primarily in New York, San Francisco, and Washington, D.C., and Atlanta, contain As of December 31, 2019, the operating properties contained a total of 9.27.3 million rentable square feet and were approximately 96.2% leased as97.1% leased.
On January 24, 2020, we acquired Normandy Real Estate Management ("Normandy"), a leading developer, operator, and investment manager of December 31, 2017.office and mixed-use assets in New York; Boston; and Washington, D.C., for approximately $100.0 million, exclusive of transaction and closing costs (the "Normandy Acquisition"). The purchase consideration for the Normandy Acquisition includes a $13.5 million cash payment and the issuance of 3,264,151 units of Columbia OP. After giving effect to this transaction, Columbia Property Trust owns approximately 97.2% of Columbia OP.
Real Estate Investment Objectives
Columbia Property Trust seeksWe seek to invest inacquire, develop, or redevelop and manage a commercial real estate portfolio that provides the size, quality, and market specialization needed to deliver both income and long-term growth, as measured in the total return to our shareholders.stockholders. Our primary strategic objective is to generate long-term shareholderstockholder returns from a combination of steadily growing cash flows and appreciation in our net asset values, through the acquisition and ownership of high-quality office buildings located principally in high-barrier-to-entry markets. Our value creation and growth strategies are founded in the following:
Targeted Market Strategy
Our portfolio consists of a combination of multi- and single-tenant office properties located primarily in Central Business Districts ("CBD"). We focus our acquisition efforts in select primary markets with strong fundamentals and liquidity, including CBD and urban in-fill locations. We believe that the major U.S.gateway office markets provide the greatest opportunity for increasing net income and property values over time. We maintain a long-term goal of increasing our presence in our target markets in order to leverage our scale, efficiency, and market knowledge.
New Investment Targets
We look to acquire, develop, or redevelop strategic and premier office assets with quality tenants in our target markets. We concentrate on office buildings that are competitive within the top tier of their markets or that can be repositioned as such through value-add initiatives. In addition, our investment objectives include optimizing our portfolio allocation between stabilized investments and more growth-oriented, value-add investments, with an emphasis on central business districtsCBDs and multi-tenant buildings.
Strong and Flexible Balance Sheet
We are committed to maintaining an investment-grade balance sheet with a strong liquidity profile and proven access to capital. Our leverage level and other credit metrics provide the financial flexibility to pursue new

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acquisitions, development and redevelopment projects, and other growth opportunities that will further our long-term performance objectives.
Capital Recycling
To date, we have primarily sold non-strategic assets (generally defined as assets outside our target markets) to increase our concentration in our target markets. In the future, we also anticipate selling some assets from our target markets to maintain a well-balanced portfolio and to harvest capital from mature assets. Our goals are to foster long-term growth and capital appreciation in our portfolio by maintaining the following:   an appropriate balance of core investments relative to value-add investments, building profiles that will continue to attract prospects for future rent growth, and activity levels that will continue to support our connections in the real estate community. We routinely evaluate our portfolio to identify assets that are good candidates for disposition in the furtherance of these goals.
Proactive Asset Management
We believe our team is well equippedwell-equipped to deliver operating results in all facets of the management process. Our leasing efforts are founded in understanding the varied and complex needs of tenants in the marketplace today. We pursue meeting those needs through new and renewal leases, as well as lease restructures that further our long-term goals. We are committed to prudent capital


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investment in our assets to ensure their competitive positioning and status, and rigorously pursue efficient operations and cost containment at the property level.
Transaction Activity
In connection with repositioning our portfolio, and in furtherance of our real estate investment objectives, we have executed the following real estate transactions during 2017, 2016,2019, 2018, and 2015:2017. See Note 3, Real Estate Transactions, of the accompanying consolidated financial statements for additional details.
Acquisitions
PropertyLocation% AcquiredSquare FeetAcquisition Date
Purchase Price
(in thousands)(1)
2019
201 California StreetSan Francisco, CA100.0 %252,000  December 9, 2019$238,900  
101 Franklin StreetNew York, NY92.5 %235,000  December 2, 2019$205,500  
2018
Lindbergh Center – RetailAtlanta, GA100.0 %147,000  October 24, 2018$23,000  
799 BroadwayNew York, NY49.7 %182,000  October 3, 2018$30,200  
(2)
2017
149 Madison AvenueNew York, NY100.0 %127,000  November 28, 2017$87,700  
249 West 17th Street & 218 West 18th StreetNew York, NY100.0 %447,000  October 11, 2017$514,100  
1800 M StreetWashington, D.C.55.0 %581,000  October 11, 2017$231,550  
(2)
114 Fifth AvenueNew York, NY49.5 %352,000  July 6, 2017$108,900  
(2)
(1)  Exclusive of transaction costs and price adjustments.
(2) Purchase price is for our partial interests in the properties. These properties are owned through unconsolidated joint ventures. Refer to Note 3, Real Estate Transactions, and Note 4, Unconsolidated Joint Ventures, of the accompanying consolidated financial statements for more information.

Acquisitions           
Property Location % Acquired Square Feet Acquisition Date 
Purchase Price
(in thousands)
2017           
149 Madison Avenue New York, NY 100.0% 127,000
 November 28, 2017 $87,700
 
245-259 West 17th Street New York, NY   281,000
     
218 West 18th Street New York, NY   166,000
     
West 17th Street & West 18th Street Acquisition 100.0% 447,000
 October 11, 2017 $514,100
 
1800 M Street Washington, D.C. 55.0% 581,000
 October 11, 2017 $231,550
(1) 
114 Fifth Avenue New York, NY 49.5% 352,000
 July 6, 2017 $108,900
(1) 
2015           
229 West 43rd Street New York, NY 100.0% 481,000
 August 4, 2015 $516,000
 
116 Huntington Avenue Boston, MA 100.0% 271,000
 January 8, 2015 $152,000
 
315 Park Avenue South New York, NY 100.0% 327,000
 January 7, 2015 $372,000
 
1881 Campus Commons Reston, VA 100.0% 244,000
 January 7, 2015 $64,000
 
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(1)
Purchase price is for our partial interests in the properties. These properties are owned through unconsolidated joint ventures. Please refer to Note 3, Real Estate Transactions, and Note 4, Unconsolidated Joint Ventures, of the accompanying consolidated financial statements for more information.


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Dispositions
PropertyLocation% SoldRentable Square FeetDisposition DateSale Price
(in thousands)
2019
Lindbergh CenterAtlanta, GA100.0 %1,105,000September 26, 2019$187,000  
One & Three Glenlake ParkwayAtlanta, GA100.0 %711,000April 15, 2019$227,500  
2018
222 East 41st StreetNew York, NY100.0 %390,000  May 29, 2018$332,500  
263 Shuman BoulevardChicago, IL100.0 %354,000  April 13, 2018$49,000  
(1)
University Circle & 333 Market Street Joint VenturesSan Francisco, CA22.5 %
(2)
1,108,000  February 1, 2018$235,300  
(2)
2017
University CircleSan Francisco, CA22.5 %
(2)
451,000  July 6, 2017$121,500  
(3)
333 Market StreetSan Francisco, CA22.5 %
(2)
657,000  July 6, 2017$112,500  
(3)
Key Center Tower & MarriottCleveland, OH100.0 %1,326,000  January 31, 2017$267,500  
Houston Property SaleHouston, TX100.0 %1,187,000  January 6, 2017$272,000  
(1)On April 13, 2018, we returned 263 Shuman to the lender in settlement of the related $49 million mortgage note.
Dispositions            
Property Location % Sold Rentable Square Feet Disposition Date 
Sale Price
(in thousands)
2017            
University Circle San Francisco, CA 22.5%
(2) 
 451,000
 July 6, 2017 $121,500
(1)(2) 
333 Market Street San Francisco, CA 22.5%
(2) 
 657,000
 July 6, 2017 $112,500
(1)(2) 
Key Center Tower & Marriott Cleveland, OH 100.0%  1,326,000
 January 31, 2017 $267,500
 
5 Houston Center Houston, TX    581,000
     
Energy Center I Houston, TX    332,000
     
515 Post Oak Houston, TX    274,000
     
Houston Property Sale   100.0%  1,187,000
 January 6, 2017 $272,000
 
2016            
SanTan Corporate Center Phoenix, AZ 100.0%  267,000
 December 15, 2016 $58,500
 
Sterling Commerce Dallas, TX 100.0%  310,000
 November 30, 2016 $51,000
 
9127 South Jamaica Street Denver, CO 100.0%  108,000
 October 12, 2016 $19,500
 
80 Park Plaza Newark, NJ 100.0%  961,000
 September 30, 2016 $174,500
 
9189, 9191 & 9193 South Jamaica Street Denver, CO 100.0%  370,000
 September 22, 2016 $122,000
 
800 North Frederick Suburban MD 100.0%  393,000
 July 8, 2016 $48,000
 
100 East Pratt Baltimore, MD 100.0%  653,000
 March 31, 2016 $187,000
 
2015            
1881 Campus Commons Reston, VA 100.0%  244,000
 December 10, 2015 $65,000
 
Market Square Washington, D.C. 49.0%  698,000
 October 28, 2015 $291,550
(3) 
170 Park Avenue Northern NJ    145,000
     
180 Park Avenue Northern NJ    224,000
     
1580 West Nursery Road Baltimore, MD    315,000
     
Acxiom Chicago, IL    322,000
     
Highland Landmark III Chicago, IL    273,000
     
The Corridors III Chicago, IL    222,000
     
215 Diehl Road Chicago, IL    162,000
     
544 Lakeview Chicago, IL  �� 139,000
     
Bannockburn Lake III Chicago, IL    106,000
     
Robbins Road Boston, MA    458,000
     
550 King Street Boston, MA    490,000
     
11 Property Sale   100.0%  2,856,000
 July 1, 2015 $433,250
 
(2)On February 1, 2018, we sold an additional 22.5% interest in both University Circle and 333 Market Street to our joint venture partner, Allianz for $235.3 million, as described in Note 3, Real Estate Transactions, of the accompanying consolidated financial statements.
(1)
(3)Sale price is for the partial interests in the properties. After partial sale, these properties are owned through unconsolidated joint ventures. Please refer to Note 3, Real Estate Transactions, and Note 4, Unconsolidated Joint Ventures, of the accompanying consolidated financial statements for more information.
Sale price is for the partial interests in the properties. After partial sale, these properties are owned through unconsolidated joint ventures. Please refer to Note 3, Real Estate Transactions, and Note 4, Unconsolidated Joint Ventures, of the accompanying consolidated financial statements for more information.
(2)
On February 1, 2018, we sold an additional 22.5% interest in both University Circle and 333 Market Street to our joint venture partner, Allianz for $235.3 million, as described in Note 3, Real Estate Transactions, of the accompanying consolidated financial statements.
(3)
Sale price is for our partial interest in the property.  On October 28, 2015, Columbia Property Trust transferred the Market Square properties, valued at $595.0 million and subject to a $325.0 million mortgage note, to a joint venture and sold a 49% interest in that joint venture to Blackstone Property Partners for net proceeds of approximately $120.0 million.  See Note 3, Real Estate Transactions, and Note 4, Unconsolidated Joint Ventures for additional information.
Segment Information
As of December 31, 2017,2019, our reportable segments are determined based on thehigh-barrier-to-entry markets and other geographic markets in which we have significant investments. We consider geographic location when evaluating our portfolio composition and in assessing the ongoing operations and performance of our properties. See Note 14, 15, Segment Information, to the accompanying consolidated financial statements.


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Employees
As of December 31, 2017,2019, we employed 9493 people.
Competition
Leasing real estate is highly competitive in the current market. As a result, we experience competition for high-quality tenants from owners and managers of competing projects. Therefore, we may experience delays in re-leasing vacant space;space, or we may have to provide rent concessions, incur charges for tenant improvements,improvement allowances, or offer other inducements to enable us to timely lease vacant space, all of which may have an adverse impact on our results of operations. In addition, we are in competition with other potential buyers for the acquisition of the same properties, which may result in an increase in the amount we must pay to purchase a property. Further, at the time we elect to dispose of our properties, we will also be in competition with sellers of similar properties to locate suitable purchasers.
Concentration of Credit Risk
We are dependent upon the ability of our current tenants to pay their contractual rent amounts as they become due. The inability of a tenant to pay future rental amounts would havecould result in a negativematerial adverse impact on our results of

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operations. We are not aware of any reason why our current tenants would not be able to pay their contractual rental amounts as they become due in all material respects. Situations preventing our tenants from paying contractual rents could result in a material adverse impact on our results of operations. Based on our 20172019 annualized lease revenue, no single tenant accounts for more than 6% of our portfolio. See Item 1A, Risk Factors, for additional discussion of how our dependence on tenants for our revenue, and lease defaults or terminations, particularly by a significant tenant, could negatively affect our financial condition and results of operations and limit our ability to make distributions to our stockholders.
Website Address
Access to copies of each of our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements, and other documents filed with, or furnished to, the SEC, including amendments to such filings, may be obtained free of charge from our website, http://www.columbia.reit, or through a link to the http://www.sec.gov website. The information contained on our website is not incorporated by reference herein. These filings are available promptly after we file them with, or furnish them to, the SEC.
ITEM 1A.RISK FACTORS
ITEM 1A.RISK FACTORS
Below are some of the risks and uncertainties that could cause our actual results to differ materially from those presented in our forward-looking statements. The risks and uncertainties described below are not the only ones we face but do represent those risks and uncertainties that we believe are material to our business, operating results, prospects, and financial condition. Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also harm our business.
Risks Related to Our Business and Properties
If we are unable to find suitable investments or paythey become too much for properties,expensive, we may not be able to achieve our investment objectives, and the returns on our investments will be lower than they otherwise would be.be; if we are unable to sell a property when we plan to do so, our operational and financial flexibility may become limited, including our ability to pay cash distributions to our stockholders.
We are competing for real estate investments with other REITs; real estate limited partnerships; pension funds and their advisors; bank and insurance company investment accounts; individuals; non U.S. investors; and other entities. The market for high-quality commercial real estate assets is highly competitive, given how infrequently those assets become available for purchase. As a result, many real estate investors, including us, face aggressive competition to purchase quality office real estate assets. A significant number of entities and resources competing for high-quality office properties support relatively high acquisition prices for such properties, which may reduce the number of acquisition opportunities available to, or affordable for, us and could put pressure on our profitability and our ability to pay distributions to stockholders. We cannot be sure that we will be successful in obtaining suitable investments onwith financially attractive terms or that, if we make investments, our objectives will be achieved.
Because real estate investments are relatively illiquid, our ability to promptly sell one or more properties in our portfolio in response to changing economic, financial, and investment conditions may be limited. Purchasers may not be willing to pay acceptable prices for properties that we wish to sell. General economic conditions, availability of financing, interest rates, capitalization rates, and other factors, including supply and demand, all of which are beyond our control, affect the real estate market. Therefore, we may be unable to sell a property for the price, on the terms, or within the time frame that we want. That inability could reduce our cash flow and cause our results of operations to suffer, limiting our ability to make distributions to our stockholders. Additionally, our properties' market values depend principally upon the value of the properties' leases and the net operating income generated by the leases. A property may incur vacancies either by the default of tenants under their leases or the expiration of tenant leases. If vacancies occur and continue for a prolonged period of time, it may become difficult to locate suitable buyers for any such property, and property resale values may suffer, which could result in lower returns for our stockholders.
Further, timing differences in our acquisitions and dispositions may create temporary fluctuations in our earnings and cash available for distribution to stockholders.

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Economic and political conditions may cause the creditworthiness of our tenants to deteriorate and occupancy and market rental rates to decline.
Although U.S. macroeconomic conditions continued to be relatively stable during 2017,2019, several economic factors, including potential increases in interest rates, may adversely affect the financial condition and liquidity of many businesses, as well as the general demand for office space generally.space. Further, our tenants might be adversely impacted by the specific consequences of, and the general market uncertainty associated with, geopolitical developments that could negatively affect international trade, including the United Kingdom's withdrawal from the European Union, the termination or threatened termination of existing international trade agreements, the outbreak or escalation of armed hostilities or acts of terrorism, or the implementation of tariffs or retaliatory tariffs on imported or exported goods. Should economic conditions worsen, our tenants' ability to honor their contractual obligations may suffer. Further, it may become increasingly difficult to maintain our occupancy rate and achieve future rental rates comparable to the rental rates of our currently in-place leases as we seek to re-lease space and/or renew existing leases.
Our office properties were approximately 96.2%97.1% leased at December 31, 2017,2019, and provisionsamounts written off for uncollectible tenant receivables, net of recoveries, were less than 0.1%of total revenues for the year then ended. As a percentage of 20172019 annualized lease revenue,


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approximately 2% of leases expire in 2018, 3% of leases expire in 2019,2020, 8% of leases expire in 2021, and 7% of leases expire in 20202022 (see Item 2, Properties). No assurances can be given that economic conditions will not have a material adverse effect on our ability to re-lease space at favorable rates or on our ability to maintain our current occupancy rate and our low provisions for uncollectible tenant receivables.
Changes in general economic conditions and regulatory matters germane to the real estate industry may cause our operating results to suffer and the value of our real estate properties to decline.
Our operating results are subject to risks generally incident to the ownership of real estate, including:
changes in general or local economic conditions;
competition from other office buildings;
increased operating costs, including insurance expenses, utilities, real estate taxes, state and local taxes and heightened security costs;
decreases in the underlying value of our real estate;
changes in supply of or demand for similar or competing properties in an area;
changes in interest rates and availability of permanent mortgage funds, which may render the sale of a property difficult or unattractive;
inability to finance property redevelopmentdevelopment or acquisitions on favorable terms;
the relative illiquidity of real estate investments;
changes in space utilization by our tenants due to technology, economic conditions, and business culture;
changes in tax, real estate, environmental, and zoning laws; and
periods of rising or higher interest rates and tight money supply.
These and other reasons may prevent us from being profitable or from realizing growth or maintaining the value of our real estate properties.
We face risks associated with property development or redevelopment.
We may acquire and develop or redevelop properties, including unimproved real estate, upon which we will construct improvements. Such activities present a number of risks for us, including risks that:
if we are unable to obtain all necessary zoning and other required governmental permits and authorizations or cease development of the project for any other reason, the development opportunity may be abandoned or postponed after expending significant resources, resulting in the loss of deposits or failure to recover expenses already incurred;

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the development and construction costs of the project may exceed original estimates due to increased interest rates and increased cost of materials, labor, leasing, or other expenditures, which could make the completion of the project less profitable because market rents may not increase sufficiently to compensate for the increase in construction costs;
construction and/or permanent financing may not be available on favorable terms or may not be available at all, which may cause the cost of the project to increase and lower the expected return;
the project may not be completed on schedule, or at all, as a result of a variety of factors, many of which are beyond our control, such as weather, labor conditions, economic conditions, and material shortages, which would result in increases in construction costs and debt service expenses;
we may encounter delays, refusals, and unforeseen cost increases resulting from third-party litigation or objections;
if a contractor's performance is affected or delayed by conditions beyond the contractor's control, we may incur additional risks when we make periodic progress payments or other advances to contractors before they complete construction;
the time between commencement of a development project and the stabilization of the completed property exposes us to risks associated with fluctuations in local and regional economic conditions; and
leasing pace, occupancy rates and rents at the completed property may not meet the expected levels and could be insufficient to make the property profitable in the expected time frames.
Properties developed or acquired for development or redevelopment may generate little or no cash flow from the date of acquisition through the date of completion of development. In addition, new development activities, regardless of whether or not they are ultimately successful, may require a substantial portion of management's time and attention.
These risks could result in substantial unanticipated delays or expenses and, under certain circumstances, could prevent completion of development activities once undertaken. Any of the foregoing could have an adverse effect on our financial condition, results of operations, or ability to satisfy our debt service obligations.
We are dependent upon the economic climatesenvironment of our primary markets - New York; San Fransisco;Francisco; Washington, D.C.; Boston; and Atlanta.Los Angeles.
In addition, market and economic conditions in the metropolitan areas in which we derive a substantial portion of our revenue such as New York, City, New York; San Francisco, California; Washington, D.C.;, Boston, Massachusetts; and Atlanta, Georgia,Los Angeles, may have a significant impact on our overall occupancy levels and rental rates and, therefore, our profitability. Furthermore, our business strategy involves continued focus on select core markets, which will increase the impact of the local economic conditions in such markets on our results of operations in future periods. These and other reasons may prevent us from being profitable or from realizing growth or maintaining the value of our real estate properties.
We depend on tenants for our revenue, and lease defaults or terminations, particularly by a significant tenant, could negatively affect our financial condition and results of operations and limit our ability to make distributions to our stockholders.
The success of our investments materially depends on the financial stability of our tenants. A default or termination by a significant tenant on its lease payments to us would cause us to lose the revenue associated with such lease and require us to find an alternative source of revenue to meet mortgagedebt payments and prevent a foreclosure if the property is subject to a mortgage, could cause us to violate our bank debt covenants, or could impact our credit rating. In the event of a tenant default or bankruptcy, we may experience delays in enforcing our rights as landlord and may incur substantial costs in protecting our investment and re-letting our property. If a tenant defaults on or terminates a significant lease, we may be unable to lease the property for the rent previously received or sell the property without incurring a loss. In addition, significant expenditures for our properties and our company,Company, such as real estate taxes, insurance and maintenance costs, together with general and administrative costs and debt payments, do not decrease when revenues decrease. Therefore, these events could have a material adverse effect on our results of operations or cause us to reduce the amount of distributions to stockholders.

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As of December 31, 2019, no more than 6% of our 2019 annualized lease revenue was attributable to any individual tenant; however, we have several significant tenants who each account for 2% to 5% of our 2019 annualized lease revenue, and accordingly, any event of bankruptcy, insolvency, or a general downturn in the business of such tenant may result in the failure or delay of the tenant's rental payments, which may have a substantial adverse effect on our operating performance.
We may be unable to integrate the business of Normandy successfully or realize the anticipated synergies and related benefits of our Normandy transaction or do so within the anticipated time frame.
The ongoing integration of the Normandy business into our own will require significant management and resources. We may encounter difficulties in the integration process or in realizing any of the expected benefits from the acquisition, including the following:
the inability to successfully combine our business and Normandy's business in a manner that permits us to achieve the synergies anticipated to result from the acquisition, which would result in some anticipated benefits of the acquisition not being realized in the time frame currently anticipated or at all;
the complexities associated with integrating personnel;
the additional complexities of combining two companies with different histories, cultures, regulatory restrictions, markets, and customer bases;
lost revenues or tenants as a result of certain tenants' decisions not to do business with us;
our failure to retain key employees;
the difficulties associated with integrating information technology systems and intellectual property;
potential unknown liabilities and unforeseen increased expenses, delays, or regulatory conditions associated with the acquisition; and
performance shortfalls as a result of the diversion of management's attention caused by completing the acquisition.
For all these reasons, it is possible that the integration process could result in the distraction of our management; the disruption of our ongoing business; or inconsistencies in our services, standards, controls, procedures, and policies; any of which could adversely affect our ability to maintain relationships with tenants, customers, vendors, and employees.
Future acquisitions may fail to perform in accordance with our expectations, may require renovation costs exceeding our estimates or expose us to unknown liabilities, and may be located in new markets where we may face risks associated with investing in an unfamiliar market.liabilities.
In the normal course of business, we typically evaluate potential acquisitions, enter into nonbinding letters of intent, and may, at any time, enter into contracts to acquire, develop, or redevelop additional properties. AcquiredOur properties may fail to perform in accordance with our expectations due to lease-up risk, renovation cost risks, and other factors. In addition, the renovation and improvement costs we incur in bringing an acquiredto bring a property up to market standards may exceed our estimates. We may not have the financial resources to make suitable acquisitions or renovations on favorable terms or at all. The properties we acquire, develop, or redevelop may be subject to liabilities for which we have no recourse, or only limited recourse, against the prior owners or other third parties with respect to unknown liabilities. As a result, if a liability were asserted against us based upon ownership of those properties, we might have to pay substantial sums to settle or contest it, which could adversely affect our results of operations and cash flow. Unknown liabilities with respect to acquiredour properties might include:
liabilities for clean-up of undisclosed environmental contamination;
claims by tenants, vendors, or other persons against the former owners of the properties;


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liabilities incurred in the ordinary course of business; and
claims for indemnification by general partners, directors, officers, and others indemnified by the former owners of the properties.
Furthermore, we may acquire properties located in markets in which we do not have an established presence. We may face possible risks associated with the physical effects of climate change.

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The physical effects of climate change could have a lackmaterial adverse effect on our properties, operations and business. For example, many of market knowledge or understanding ofour properties are located along the local economy, forging new business relationshipsEast and West coasts, particularly those in the area,central business districts of New York, San Francisco, Washington, D.C., Boston and unfamiliarity with local governmentLos Angeles. To the extent climate change causes changes in weather patterns, our markets could experience increases in storm intensity and permitting procedures. As arising sea-levels. Over time, these conditions could result the operating performance of properties acquired in new markets may be less than we anticipate, and we may have difficulty integrating such properties into our existing portfolio. In addition, the time and resources that may be required to obtain market knowledge and/or integrate such properties into our existing portfolio could divert our management's attention from our existing business or other attractive opportunitiesdeclining demand for office space in our established markets.
Real estate investments are illiquid;buildings or our inability to selloperate the buildings at all. Climate change may also have indirect effects on our business by increasing the cost of (or making unavailable) property insurance on terms we find acceptable and increasing the cost of energy at our properties. There can be no assurance that climate change will not have a property when we plan to do so could limitmaterial adverse effect on our operational and financial flexibility, including our ability to pay cash distributions to our stockholders.
Because real estate investments are relatively illiquid, our ability to sell promptly oneproperties, operations or more properties in our portfolio in response to changing economic, financial, and investment conditions may be limited. Purchasers may not be willing to pay acceptable prices for properties that we wish to sell. General economic conditions, availability of financing, interest rates, and other factors, including supply and demand, all of which are beyond our control, affect the real estate market. Therefore, we may be unable to sell a property for the price, on the terms, or within the time frame that we want. That inability could reduce our cash flow and cause our results of operations to suffer, limiting our ability to make distributions to our stockholders. Furthermore, our properties' market values depend principally upon the value of the properties' leases. A property may incur vacancies either by the default of tenants under their leases or the expiration of tenant leases. If vacancies occur and continue for a prolonged period of time, it may become difficult to locate suitable buyers for any such property, and property resale values may suffer, which could result in lower returns for our stockholders.business.
Uninsured losses relating to real property or excessively expensive premiums for insurance coverage could reduce our net income, and materially and adversely affect our business or financial condition.
We may incur losses from time to time that are uninsurable or not economically feasible to insure, or may be insured subject to limitations, such as large deductibles or co-payments. Some of these losses could be catastrophic in nature, such as losses due to earthquakes, acts of terrorism, fire, floods, tornadoes, hurricanes, pollution, wars, or environmental matters. For example, we have properties located in the San Francisco Bay Area of California, an area especially susceptible to earthquakes, and, collectively, these properties represent approximately 28%34% of our 20172019 annualized lease revenue, as described in Item 2, Properties. Because several of these properties are located in close proximity to one another, an earthquake in the San Francisco area could materially damage, destroy, or impair the use by tenants of all of these properties. Furthermore, insurance risks associated with potential terrorist acts could sharply increase the premiums we pay for coverage against property and casualty claims. Additionally, mortgage lenders in some cases insist that commercial property owners purchase coverage against terrorism as a condition of providing mortgage loans. Such insurance policies may not be available at a reasonable cost, if at all, which could inhibit our ability to finance or refinance our properties. In such instances, we may be required to provide other financial support, either through financial assurances or self-insurance, to cover potential losses. In addition, we may not have adequate coverage for losses. If any of our properties incur a loss that is not fully insured, the value of that asset will be reduced by such uninsured loss. Furthermore, other than any working capital reserves or other reserves that we may establish, or our existing line of credit, we do not have additional sources of funding specifically designated for repairs or reconstruction of any of our properties. To the extent we incur significant uninsured losses, or are required to pay unexpectedly large amounts for insurance, our results of operations or financial condition could be adversely affected.
Our insurance providers may default on their obligations to pay claims.
If one or more of our insurance providers were to fail to pay a claim as a result of insolvency, bankruptcy, or otherwise, the nonpayment of such claims could have an adverse effect on our financial condition and results of operations. In addition, if one or more of our insurance providers were to become subject to insolvency, bankruptcy, or other proceedings and our insurance policies with the provider were terminated or canceled as a result of those proceedings, we cannot guarantee that we would be able to find alternative coverage in adequate amounts or at reasonable prices. In such case, we could experience a lapse in any or adequate insurance coverage with respect to one or more properties and be exposed to potential losses relating to any claims that may arise during such period of lapsed or inadequate coverage.
Actual or threatened terrorist attacks, armed hostilities, or contagious disease epidemics affecting our target markets may adversely affect our ability to generate revenues and the value of our properties.
We have significant investments in densely populated metropolitan markets that have been, or may be in the future, negatively impacted by actual or threatened acts of terrorism or contagious disease epidemics, including New York, San Francisco, Washington, D.C., Boston, and Los Angeles. As a result, some tenants in these markets may choose to relocate their businesses to other markets with less population density or to lower-profile office buildings within these markets that may be perceived to be less-likely targets of future terrorist activity. This could result in an overall decrease in the demand for office space in these markets generally or in our properties in particular, which could increase vacancies in our properties or necessitate that we lease our properties on less favorable terms or both. In addition, future terrorist attacks in these markets could directly or indirectly damage our properties, both

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physically and financially, or cause losses that materially exceed our insurance coverage. Attacks, armed conflicts, or diseases could result in increased operating costs, including building security, building systems maintenance, property and casualty insurance, and property maintenance. As a result of terrorist activities and other market conditions, the cost of insurance coverage for our properties could also increase. In addition, our insurance policies may not recover all our property replacement costs and lost revenue resulting from the attack. As a result of the foregoing, our ability to generate revenues and the value of our properties could decline materially.
If we are unable to fund the future capital needs of our properties, cash distributions to our stockholders and the value of our investments could decline.
When tenants do not renew their leases or otherwise vacate their space, we often need to expend substantial funds for tenant improvements to improve the vacated space in order to attract replacement tenants. In addition, although we expect that our leases with tenants will require tenants to pay routine property maintenance costs, we will likely be responsible for any major structural repairs, such as repairs to the foundation, exterior walls, and rooftops.
If we need significant capital in the future to improve or maintain our properties or for any other reason, we will have to obtain financing from sources such as cash flow from operations, borrowings, property sales, or future equity offerings. These sources of funding may not be available on attractive terms or at all. If we cannot procure the necessary funding for capital improvements, our investments may generate lower cash flows or decline in value, or both, which would limit our ability to make distributions to our stockholders.


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We have incurred and are likely tomay continue to incur mortgage and other indebtedness, which may increase our business risks.
As of February 2, 2018,3, 2020, our total consolidated indebtedness was approximately $1.5$1.4 billion, which includes a $300.0 million term loan, a $150.0 million term loan, and $700.0 million of bonds and $71.9 million of mortgage loans, all with fixed interest rates, or with interest rates that are effectively fixed when considered in connection with an interest rate swap agreement;agreements; and $180.0 million outstanding on a bridge loan, a $300.0 million term loan, and $60.0$224.0 million in outstanding borrowings on our line of credit, all with a variable interest rates.rate. We are likely tomay incur additional indebtedness to acquire, develop, or redevelop properties, to fund property improvements and other capital expenditures, to pay our distributions, and for other purposes.
Significant borrowings by us increase the risks of an investment in us. If there is a shortfall between the cash flow from properties and the cash flow needed to service our indebtedness, then the amount available for distributions to stockholders may be reduced. In addition, incurring mortgage debt increases the risk of loss since defaults on indebtedness secured by a property may result in lenders initiating foreclosure actions. In that case, we could lose the property securing the loan that is in default. If any of our properties are foreclosed due to a default, our ability to pay cash distributions to our stockholders will be limited. For tax purposes, a foreclosure of any of our properties would be treated as a sale of the property for a purchase price equal to the outstanding balance of the debt secured by the mortgage. If the outstanding balance of the debt secured by the mortgage exceeds our tax basis in the property, we would recognize taxable income on foreclosure, but we would not receive any cash proceeds. We may give full or partial guarantees to lenders of mortgage debt on behalf of the entities that own our properties. When we give a guaranty on behalf of an entity that owns one of our properties, we are responsible to the lender for satisfaction of the debt if it is not paid by such entity.
If any mortgages or other indebtedness containcontains cross-collateralization or cross-default provisions, a default on a single loan could affect multiple properties. Our unsecured credit facility (the "Revolving Credit Facility") and our threetwo unsecured term loan facilities each include a cross-default provision that provides that a payment default under any recourse obligation of $50 million or more by us, Columbia Property Trust OP, or any of our subsidiaries, constitutes a default under the line of credit and term loan facilities.
Increases in interest rates could increase the amount of our debt payments and make it difficult for us to refinance our unsecured bank debt or bonds, or to finance or refinance properties, which could reduce the number of properties we can acquire, develop, or redevelop, our net income, and the amount of cash distributions we can make.
We expect to incur additional indebtedness in the future, which may include mortgages, unsecured bonds, term loans, or borrowings under a credit facility.facility, unsecured bonds, or mortgages. Increases in interest rates will increase interest costs on our variable-interest debt instruments, which would reduce our cash flows and our ability to pay distributions. If mortgage debt is

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unavailable at reasonable interest rates, we may not be able to finance the purchase of properties. If we place mortgage debt on properties, we run the risk of being unable to refinance the properties when the loans become due, or of being unable to refinance on favorable terms. In addition, if we need to repay existing debt during periods of higher interest rates, we may need to sell one or more of our investments in order to repay the debt, which sale at that time might not permit realization of the maximum return on such investments. If any of these events occur, our ability to refinance some or all of our existing indebtedness may be impacted and our cash flow wouldmay be reduced. This, in turn, would reduce cash available for distribution to our stockholders and may hinder our ability to raise capital in the future through additional borrowings or debt or equity offerings. For additional information, pleasePlease refer to Item 7A, Quantitative and Qualitative Disclosures Aboutabout Market Risk, for additional information regarding interest rate risk.
Changes in the method pursuant to which the LIBOR rates are determined and potential phasing out of LIBOR after 2021 may adversely affect our results of operations.
Our variable-interest debt instruments may use London Interbank Offering Rate ("LIBOR") as a benchmark for establishing the rate. LIBOR is expected to be discontinued at the end of 2021. The anticipated discontinuation of LIBOR will require lenders and their borrowers to transition from LIBOR to an alternative benchmark interest rate, which might increase the cost of our variable-interest debt instruments. At this time, no consensus exists as to what rate or rates may become acceptable alternatives to LIBOR, and it is impossible to predict the effect of any such alternatives on the value of LIBOR-based variable rate loans or other financial arrangements. Uncertainty as to the nature of alternative reference rates and as to potential changes or other reforms to LIBOR may adversely affect LIBOR rates and the value of LIBOR-based loans.
If LIBOR is discontinued as anticipated, or otherwise at our option, our Revolving Credit Facility and term loan facilities provide for alternate interest rate calculations. Any such alternative interest rates may be calculated differently than LIBOR and may increase the interest expense associated with our existing or future indebtedness.
Lenders may require us to enter into restrictive covenants relating to our operations, which could limit our ability to make distributions to our stockholders.
When providing financing, a lender may impose restrictions on us that affect our distribution and operating policies and our ability to incur additional debt. Loan documents we enter into may contain covenants that limit our ability to further mortgage the property or discontinue insurance coverage. These or other limitations may limit our flexibility and our ability to execute on our operating plans.
A downgrade in the credit rating of our debt could materially adversely affect our business and financial condition.
Our senior unsecured debt is rated investment grade by Standard & Poor's CorporationS&P Global Ratings and Moody's Investors Service. In determining our credit ratings, the rating agencies consider a number of both quantitative and qualitative factors, including earnings, fixed charges, cash flows, total debt outstanding, total secured debt, off balance sheet obligations, total capitalization, and various ratios calculated from these factors. The rating agencies also consider predictability of cash flows, business strategy, joint venture activity, property development risks, industry conditions, and contingencies. Therefore, any deterioration in our operating performance could cause our investment-grade rating to come under pressure. Our corporate credit rating at Standard & Poor'sS&P Global Ratings Service is currently "BBB" with a stable outlook, and our corporate credit rating at Moody's Investor Service is currently "Baa2" with a stable outlook. There can be no assurance that our credit ratings will not be lowered or withdrawn in their entirety. A negative change in our ratings outlook or any downgrade in our current investment-grade credit ratings by rating agencies could adversely affect our cost and


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access to sources of liquidity and capital. Additionally, a downgrade could, among other things, increase the costs of borrowing under our credit facility and term loan,loans, adversely impact our ability to obtain unsecured debt or refinance our unsecured debt on competitive terms in the future, or require us to take certain actions to support our obligations, any of which would adversely affect our business and financial condition.
We face risks relating to the occurrence of cyber incidents, or a deficiency in our cybersecurity, which could negatively impact our business by causing a disruption to our operations, a compromise of confidential information, and/or damage to our business relationships.

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A cyber incident is considered to be any adverse event that threatens the confidentiality, integrity, or availability of our information resources. More specifically, a cyber incident is an intentional attack or an unintentional event that can include gaining unauthorized access to systems to disrupt operations, corrupt data, or steal confidential information. A breach of our privacy or information security systems or our tenants' privacy or information security systems, particularly through cyber attacks or cyber intrusion, could materially adversely affect our business and financial condition.
Privacy and information security risks have generally increased in recent years because of the proliferation of new technologies and the increased sophistication and activities of perpetrators of cyber attacks. As our reliance on technology has increased, so have the risks of cyber attacks to our systems, both internal and those we have outsourced. Cyber attacks can be both individual and highly organized attempts planned by very sophisticated hacking organizations. Risks that could directly result from the occurrence of a cyber incident include operational interruption, damage to our relationships with our tenants, potential errors from misstated financial reports, missed reporting deadlines, violations of loan covenants, inability to comply with laws and regulations and private data exposure, among others. Any or all of the preceding risks could have a material adverse effect on our results of operations, financial condition, and cash flows. Although
We employ a number of measures to prevent, detect, and mitigate these threats, which include dual factor authentication, frequent password change events, firewall detection systems, frequent backups, a redundant data system for core applications, and annual breach testing. While, to date, we makehave not had a significant cyber breach or attack that has had a material impact on our business or results of operations, there can be no assurance that our efforts to maintain the security and integrity of these types of information technology networks and relatedour systems there can be no assurance that our security efforts and measures will be effective, or that attemptedwe will be able to maintain our systems free from security breaches or disruptions would notother operational interruptions.
A cybersecurity attack could compromise the confidential information of our employees, customers, and vendors. A successful attack could disrupt and affect our business operations, damage our reputation, and result in significant remediation and litigation costs. Further, one or more of our tenants could experience a cyber incident which could impact their operations and ability to perform under the terms of their lease with us. While we maintain insurance coverage that may, subject to policy terms and conditions including deductibles, cover specific aspects of cyber risks, such insurance coverage may be successful or damaging.insufficient to cover all losses. As cyber threats continue to evolve, we may be required to expend additional resources to continue to enhance our information security measures and to investigate and remediate any information security vulnerabilities.
We are and may continue to be subject to litigation, which could have a material adverse effect on our financial condition.
We currently are, and are likely to continue to be, subject to a variety of claims arising in the ordinary course of business, includingbusiness. Such claims could include personal injury claims, contract claims, and claims alleging violations of federal and state law regarding workplace and employment matters, discrimination, and similar matters. Some of these claims may result in significant defense costs and potentially significant judgments against us, some of which are not, or cannot be, insured against. Although we defend ourselves against any such claims, we cannot be certain of the ultimate outcomes of currently asserted claims or of those that arise in the future. Resolution of these types of matters against us may result in our having to pay significant fines, judgments, or settlements, which, if uninsured, or if the fines, judgments, and settlements exceed insured levels, would adversely impact our earnings and cash flows, thereby impacting our ability to service debt and make distributions to our stockholders.
Costs of complying with governmental laws and regulations may reduce our net income and the cash available for distributions to our stockholders.
All real property and the operations conducted on real property are subject to federal, state, and local laws and regulations relating to environmental protection and human health and safety. Some of these laws and regulations may impose joint and several liability on tenants, owners, or operators for the costs to investigate or remediate contaminated properties, regardless of fault or whether the acts causing the contamination were legal. In addition, the presence of hazardous substances, or the failure to properly remediate these substances, may hinder our ability to sell, rent, or pledge such property as collateral for future borrowings.

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Compliance with new laws or regulations such as the New York Climate Mobilization Act, or stricter interpretation of existing laws, may require us to incur material expenditures. Future laws, ordinances, or regulations may impose material environmental liability. Additionally, our tenants' operations, the existing condition of land when we buy it, operations in the vicinity of our properties, such as the presence of underground storage tanks or activities of unrelated third parties may affect our properties. Furthermore, there are various local, state, and federal regulatory requirements, such as fire, health, life-safety, and similar regulations, and the Americans with Disabilities Act, with which we may be required to comply, and which may subject us to liability in the form of fines or damages for noncompliance. Any material expenditures, fines, or damages we must pay would adversely impact our earnings and cash flows, thereby impacting our ability to service debt and make distributions to our stockholders.
Compliance or failure to comply with the Americans with Disabilities Act or other safety regulations and requirements could result in substantial costs.
The Americans with Disabilities Act generally requires that certain buildings, including office buildings, be made accessible to disabled persons. Noncompliance could result in the imposition of fines by the federal government or the award of damages to private litigants. If, under the Americans with Disabilities Act, we are required to make substantial alterations and capital expenditures in one or more of our properties, including the removal of access barriers, it could adversely impact our earnings and cash flows, thereby impacting our ability to service debt and make distributions to our stockholders.
Our properties are subject to various federal, state, and local regulatory requirements, such as state and local fire and life safety requirements. If we fail to comply with these requirements, we could incur fines or private damage awards. We do not know whether existing requirements will change or whether compliance with future requirements will require significant unanticipated expenditures that will affect our cash flow and results of operations.


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Discovery of previously undetected environmentally hazardous conditions may decrease our revenues and limit our ability to make distributions.
Under various federal, state, and local environmental laws, ordinances, and regulations, a current or previous real property owner or operator may be liable for the cost to remove or remediate hazardous or toxic substances on, under, or in such property. These costs could be substantial. Such laws often impose liability whether or not the owner or operator knew of, or was responsible for, the presence of such hazardous or toxic substances. Environmental laws also may impose restrictions on the manner in which property may be used or businesses may be operated, and these restrictions may require substantial expenditures or prevent us from entering into leases with prospective tenants that may be impacted by such laws. Environmental laws provide for sanctions for noncompliance and may be enforced by governmental agencies or, in certain circumstances, by private parties. Certain environmental laws and common law principles could be used to impose liability for release of and exposure to hazardous substances, including asbestos-containing materials. Third parties may seek recovery from real property owners or operators for personal injury or property damage associated with exposure to released hazardous substances. The cost of defending against claims of liability, of complying with environmental regulatory requirements, of remediating any contaminated property, or of paying personal injury claims could have an adverse impact on our business and results of operations.
Property ownership through joint ventures may limit our ability to act exclusively in our interest.
We have entered into fiveseven joint venture arrangements and in the future may acquire, develop, or redevelop properties in, or contribute properties to, joint ventures with other persons or entities when we believe circumstances warrant the use of such structures. We could become engaged in a dispute with one or more of our joint venture partners, which might affect our ability to operate a jointly-ownedjointly owned property. Moreover, joint venture partners may have business, economic, or other objectives that are inconsistent with our objectives, including objectives that relate to the appropriate timing and terms of any sale or refinancing of a property. In some instances, joint venture partners may have competing interests in our markets that could create conflicts of interest. Also, our joint venture partners might refuse to make capital contributions when due, and we may be responsible to our partners for indemnifiable losses. We and our partners may each have the right to trigger a buy-sell arrangement,

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Index to Financial Statements
which could cause us to sell our interest, or acquire our partners' interest, at a time when we otherwise would not have initiated such a transaction and may result in the valuation of our interest in the joint venture (if we are the seller) or of the other partner's interest in the joint venture (if we are the buyer) at levels which may not be representative of the valuation that would result from an arm's lengtharm's-length marketing process. We are also subject to risk in cases where an institutional owner isthe following risks, the likelihood of which may be higher when our joint venture partner includingis an institutional owner and required to aggregate approvals from multiple beneficial owners: (i) a deadlock if we and our joint venture partner are unable to agree upon certain major and other decisions, (ii) the limitation of our ability to liquidate our position in the joint venture without the consent of the other joint venture partner, and (iii) the requirement to provide guarantees in favor of lenders with respect to the indebtedness of the joint venture.
If we sell properties and provide financing to purchasers, defaults by the purchasers would decrease our cash flows and limit our ability to make distributions.
In some instances we may sell our properties by providing financing to purchasers. When we provide financing to purchasers, we will bear the risk that the purchaser may default, which could negatively impact our liquidity and results of operations. Even in the absence of a purchaser default, the distribution of the proceeds of sales to our stockholders, or the reinvestment of proceeds in other assets, will be delayed until the promissory notes or other property we may accept upon a sale are actually paid, sold, refinanced, or otherwise disposed.
We are dependent on our executive officers and employees.employees, and competition for skilled personnel could increase our compensation costs.
We rely on a small number of persons, particularly E. Nelson Mills and James A. Fleming,our executive officers, to carry out our business and investment strategies. Any of our senior management, including Messrs. Mills and Fleming,our executive officers, may cease to provide services to us at any time. The loss of the services of any of our key management personnel or our inability to recruit and retain qualified personnel in the future, could have an adverse effect on our business and financial results. Further, we compete with various other companies in attracting and retaining qualified and skilled personnel, which may require us to enhance our pay and benefits packages to compete effectively for such personnel. We will continue to try to attract and retain qualified additional senior management and other employees, but may not be able to do so on acceptable terms.
Our operating results may suffer because of potential development and construction risks and delays and resultant increased costs.
We may acquire and redevelop properties, including unimproved real estate, upon which we will construct improvements. We will be subject to uncertainties associated with rezoning for development and our ability to obtain required permits and authorizations; environmental concerns of governmental entities and/or community groups; and our contractors' abilities to build in conformity with plans, specifications, budgeted costs, and timetables. If a contractor fails to perform, we may resort to legal action to rescind the purchase or the construction contract or to compel performance. A contractor's performance may also be affected or delayed by conditions beyond the contractor's control, and we may incur additional risks when we make periodic progress payments or other advances to contractors before they complete construction. Delays in completing construction could also give tenants the right to terminate preconstruction leases. These and other factors can result in increased costs of a project or loss of our investment.


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In addition, we will be subject to normal lease-up risks relating to newly constructed projects. We must rely on rental income and expense projections and estimates of the fair market value of property upon completion of construction when agreeing upon a purchase price at the time we acquire the property. If our projections are inaccurate, we may pay too much for a property, and our return on our investment could suffer.
If our disclosure controls or internal control over financial reporting are not effective, investors could lose confidence in our reported financial information, which could adversely affect the perception of our business and the trading price of our common stock.
Section 404 of the Sarbanes-Oxley Act of 2002 requires that we evaluate the effectiveness of our internal control over financial reporting as of the end of each fiscal year and to include a management report assessing the effectiveness of our internal control over financial reporting. Deficiencies, including any material weakness, in our internal control over financial reporting that may occur in the future could result in misstatements of our results of operations, restatements of our financial statements, a decline in the trading price of our common stock, or otherwise materially adversely affect our business, reputation, results of operations, financial condition, or liquidity.
We may incur impairment charges.
We evaluate on a quarterly basis our real estate portfolios for indicators of impairment. Impairment charges reflect management's judgment of the probability and severity of the decline in the value of real estate assets and investments we own. These charges and provisions may be required in the future as a result of factors beyond our control, including, among other things, changes in our expected holding periods, changes in the economic environment and market conditions affecting the value of real property assets, or natural or man-made disasters. If we are required to take impairment charges, our results of operations could be adversely impacted.
Our entry into the investment advisory business subjects us to a variety of risks associated with investment performance and advisory services.
On January 24, 2020, we completed the acquisition of Normandy Real Estate Management, LLC, which is a registered investment advisor ("RIA") that provides investment management services, among other things. As a result, the

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Index to Financial Statements
newly acquired investment advisory business will continue to be registered as an RIA with the SEC under the Investment Advisers Act of 1940, as amended (the "Advisers Act"). Federally registered investment advisers are regulated and subject to examination by the SEC. Additionally, the Advisers Act imposes numerous obligations on RIAs, including fiduciary duties, disclosure obligations, recordkeeping and reporting requirements, marketing restrictions, and general anti-fraud prohibitions. Our failure to comply with the Advisers Act and associated rules and regulations promulgated by the SEC could subject us to enforcement proceedings and sanctions for violations, including censure or termination of SEC registration, litigation, and reputational harm. In addition, our investment advisory business is subject to state laws and regulations.
Additionally, poor investment returns and declines in client assets in our investment advisory business, due to either general market conditions or under-performance (relative to our competitors or to benchmarks) by investment products, may affect our ability to retain existing assets, prevent clients from transferring their assets out of products or their accounts, or inhibit our ability to attract new clients or additional assets from existing clients. Any such poor performance could adversely affect our investment advisory business and the advisory fees that we earn on client assets.
Conflicts of interest, or the appearance of conflicts of interest, may arise because certain of our directors and officers are also affiliated with interests that may directly compete with us in the future.
Conflicts of interest, or the appearance of conflicts of interest, could arise between our interests and the interests of the other entities and business activities in which our directors or officers are involved. For example, in connection with our acquisition of Normandy, certain of our officers and directors retain interests in assets or funds that were excluded from the acquisition that may in the future compete with our business in certain markets or in complimentary business lines once they are no longer subject to non-compete obligations. In such cases, the interests of such directors and officers may not be aligned with our own in all respects. Furthermore, we are involved in business arrangements in which both we, on the one hand, and entities or funds formerly affiliated with Normandy, on the other hand, are joint venture partners. Conflicts of interests, or the appearance of conflicts of interests, could arise in that context as we now control and have duties on behalf of both joint venture partners. While our contractual arrangements place restrictions on the parties' conduct in certain situations, and related party transactions are subject to independent review and approval in accordance with our related party transaction approval procedures and applicable law, the potential for a conflict of interest exists and such persons may have conflicts of interest, or the appearance of conflicts of interest, with respect to these matters.

Risks Related to Ownership of Our Common Stock
We may be unable to pay or maintain cash distributions or increase distributions over time, which could reduce the funds we have available for investment and the return to our investors.
There are many factors that can affect the availability and timing of distributions to stockholders. We expect to continue to fund distributions principally from cash flow from operations; however, from time to time we may elect to fund a portion of our distributions from borrowings. If we fund distributions from financings, we will have fewer funds available for the investment in, and acquisition of, properties; thus, the overall return to our investors may be reduced. We can give no assurance that we will be able to pay or maintain cash distributions or increase distributions over time. Our ability to make distributions in the future will depend on several factors, many of which may be beyond our control, including:
the operational and financial performance of our properties;
capital expenditures with respect to existing, developed, and newly acquired properties;
general and administrative costs associated with our operation as a publicly held REIT;
the amount of, and the interest rates on, our debt; and
potential significant expenditures relating to environmental and other regulatory matters.
Our stock price may be volatile or may decline regardless of our operating performance, and may impede our stockholders' ability to sell their shares at a desirable price.

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Index to Financial Statements
The market price of our common stock may vary significantly in response to a number of factors, most of which we cannot control, including those described under this section and the following:
changes in capital market conditions that could affect valuations of real estate companies in general or other adverse economic conditions;
our failure to meet any earnings estimates or expectations;
future sales of our common stock by our officers, directors, and significant stockholders;
global economic, legal, and regulatory factors unrelated to our performance;
investors' perceptions of our prospects;
announcements by us or our competitors of significant contracts, acquisitions, joint ventures, or capital commitments; and
investor perceptions of the investment opportunity associated with our common stock relative to other investment alternatives.
In addition, from time to time, the New York Stock Exchange (the "NYSE"), has experienced extreme price and volume fluctuations that have affected the market prices of equity securities of many real estate companies. In the past, stockholders have instituted securities class action litigation following periods of market volatility. If we were involved in securities litigation, we could incur substantial costs, and our resources and the attention of management could be diverted from our business. Furthermore, we currently have limited research coverage by securities and industry analysts. If additional securities or industry analysts do not commence coverage of our company,Company, the long-term trading price for our common stock could be negatively impacted. If one or more of present or future analysts who cover us downgrade our common stock or publish inaccurate or unfavorable research about our business, our stock price would likely decline. If one or more of these analysts cease coverage of us or fail to publish reports on us regularly, demand for our common stock could decrease, which could cause our stock price and trading volume to decline.
Further issuances of equity securities may be dilutive to current stockholders.
The interests of our existing stockholders could be diluted if additional equity securities are issued to finance future acquisitions, developments, or redevelopments, or to repay indebtedness. Our ability to execute our business strategy depends on our access to an appropriate blend of debt financing, including unsecured lines of credit and other forms of secured and unsecured debt, and equity financing.
Our charter limits the number of shares a person may own, which may discourage a takeover that could otherwise result in a premium price to our stockholders.
Our charter, with certain exceptions, authorizes our directors to take such actions as are necessary and desirable to preserve our qualification as a REIT. Unless exempted by our board of directors, no person may own more than 9.8% of our outstanding common stock. This restriction may have the effect of delaying, deferring, or preventing a change in control, including an extraordinary


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transaction (such as a merger, tender offer, or sale of all or substantially all of our assets) that might provide a premium price for holders of our common stock.
Our organizational documents contain provisions that may discourage a takeover of us and could depress the price of our shares of common stock.stock.
Our organizational documents contain provisions that may discourage a takeover of us and could depress the price of our common stock. Our organizational documents contain provisions that may have an anti-takeover effect, inhibit a change of our management, or inhibit, in certain circumstances, tender offers for our common stock or proxy contests to change our board. These provisions include: ownership limits and restrictions on transferability that are intended to enable us to continue to qualify as a REIT; broad discretion of our board to take action, without stockholder approval, to issue new classes of securities that may discourage a third party from acquiring us; the ability, through board action or bylaw amendment to opt-inopt in to certain provisions of Maryland law that may impede efforts to effect a change in control of us; advance notice requirements for stockholder proposals and stockholder nominations of directors; and the absence of cumulative voting rights.

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Index to Financial Statements
In addition, our board of directors may classify or reclassify any unissued preferred stock and establish the preferences; conversion; or other rights, voting powers, restrictions, or limitations as to distributions, qualifications, and terms or conditions of redemption of any such stock. Thus, our board of directors could authorize the issuance of preferred stock with terms and conditions that could have priority as to distributions and amounts payable upon liquidation over the rights of the holders of our common stock. Such preferred stock could also have the effect of delaying, deferring, or preventing a change in control of us, including an extraordinary transaction (such as a merger, tender offer, or sale of all or substantially all of our assets) that might provide a premium price to holders of our common stock.
Maryland General Corporation Law provides certain protections relating to deterring or defending hostile takeovers, which may discourage others from trying to acquire control of us and may prevent our stockholders from receiving a premium price for their stock in connection with a business combination.
Our board of directors has determined to opt out of certain provisions of Maryland law that may impede efforts to effect a change in control of us as further described below; in the case of the business combination provisions of Maryland law, by resolution of our board of directors; in the case of the control share provisions of Maryland law, pursuant to a provision in our bylaws; and in the case of certain provisions of the Maryland Unsolicited Takeover Act, pursuant to Articles Supplementary. Only upon stockholder approval of an amendment to our Articles of Incorporation may our board of directors repeal the foregoing opt-outs from the anti-takeover provisions of Maryland General Corporation Law.
Under Maryland law, "business combinations" between a Maryland corporation and certain interested stockholders or affiliates of interested stockholders are prohibited for five years after the most recent date on which the interested stockholder becomes an interested stockholder. These business combinations include a merger, consolidation, share exchange, or, in circumstances specified in the statute, an asset transfer or issuance or reclassification of equity securities. Also under Maryland law, control shares of a Maryland corporation acquired in a control share acquisition have no voting rights except to the extent approved by a vote of two-thirds of the votes entitled to be cast on the matter. Shares owned by the acquirer, an officer of the corporation, or an employee of the corporation who is also a director of the corporation are excluded from the vote on whether to accord voting rights to the control shares. These provisions may therefore discourage others from trying to acquire control of us and increase the difficulty of consummating any offer. Similarly, provisions of Title 3, Subtitle 8 of the Maryland General Corporation Law, commonly referred to as the "Maryland Unsolicited Takeover Act," could provide similar anti-takeover protection.
Corporate responsibility, specifically related to environmental, social and governance factors (“ESG”), may impose additional costs and expose us to new risks.
The importance of sustainability evaluations is becoming more broadly accepted by investors and shareholders. Certain organizations that provide corporate governance and other corporate risk information to investors and shareholders have developed scores and ratings to evaluate companies and investment funds based upon environmental, social and governance (“ESG”) or “sustainability” metrics. Many investment funds focus on positive ESG business practices and sustainability scores when making investments and may consider a company’s sustainability score as a reputational or other factor in making an investment decision. In addition, investors, particularly institutional investors, use these scores to benchmark companies against their peers and if a company is perceived as lagging, these investors may engage with companies to require improved ESG disclosure or performance. We may face reputational damage in the event our corporate responsibility procedures or standards do not meet the standards set by various constituencies. A low sustainability score could result in a negative perception of the Company, or exclusion of our common stock from consideration by certain investors.
Federal Income Tax Risks
Failure to qualify as a REIT would reduce our net income and cash available for distributions.
Our qualification as a REIT depends upon our ability to meet requirements regarding our organization and ownership, distributions of our income, the nature and diversification of our income and assets, and other tests

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Index to Financial Statements
imposed by the Internal Revenue Code (the "Code"). The fact that we hold a substantial amount of our assets through Columbia OP and its subsidiaries and real estate ventures further complicates the application of the REIT requirements for us. If we fail to qualify as a REIT for any taxable year, we will be subject to federal and state income tax on our taxable income at corporate rates, including interest and any applicable penalties. In addition, we would generally be disqualified from treatment as a REIT for the four taxable years following the year of losing our REIT status. Losing our REIT status would reduce our net earnings available for investment or distribution to stockholders because of the additional tax liability. In addition, distributions to stockholders would no longer qualify for the dividends-paid deduction, and we would no longer be required to make distributions. If this occurs, we might be required to borrow funds or liquidate some investments in order to pay the applicable tax.
Recharacterization of sale-leaseback transactions may cause us to lose our REIT status, which would reduce the return to our stockholders.


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We may purchase properties and lease them back to the sellers of such properties. While we will use our best efforts to structure any such sale-leaseback transaction such that the lease will be characterized as a "true lease," thereby allowing us to be treated as the owner of the property for federal income tax purposes, we can give no assurance that the Internal Revenue Service will not challenge such characterization. In the event that any such sale-leaseback transaction is challenged and recharacterized as a financing transaction or loan for federal income tax purposes, deductions for depreciation and cost recovery relating to such property would be disallowed. If a sale-leaseback transaction were so recharacterized, we might fail to satisfy the REIT qualification asset tests or income tests and, consequently, lose our REIT status. Alternatively, the amount of our REIT taxable income could be recalculated, which might also cause us to fail to meet the distribution requirement for a taxable year.
Failure of Columbia OP to be treated as a disregarded entity or a partnership would have serious adverse consequences to our stockholders.
If the IRS were to successfully challenge the tax status of the Columbia OP or any of its subsidiary partnerships or real estate ventures for federal income tax purposes, the Columbia OP or the affected subsidiary partnership or real estate venture would be taxable as a corporation. In such event, we would cease to qualify as a REIT and the imposition of a corporate tax on the Columbia OP, subsidiary partnership, or real estate venture would reduce the amount of cash available for distribution from the Columbia OP to us and ultimately to our stockholders.
Even if we qualify as a REIT for federal income tax purposes, we may be subject to other tax liabilities that reduce our cash flow and our ability to make distributions to our stockholders.
Even if we remain qualified as a REIT for federal income tax purposes, we may be subject to some federal, state, and local taxes on our income or property. For example:
In order to qualify as a REIT, we must distribute annually at least 90% of our REIT taxable income to our stockholders (which is determined without regard to the dividends-paid deduction or net capital gain). To the extent that we satisfy the distribution requirement but distribute less than 100% of our REIT taxable income, we will be subject to federal and state corporate income tax on the undistributed income.
We will be subject to a 4% nondeductible excise tax on the amount, if any, by which distributions we pay in any calendar year are less than the sum of 85% of our ordinary income, 95% of our capital gains net income, and 100% of our undistributed income from prior years.
If we have net income from the sale of foreclosure property that we hold primarily for sale to customers in the ordinary course of business or other nonqualifying income from foreclosure property, we must pay a tax on that income at the highest corporate income tax rate.
If we sell a property, other than foreclosure property, that we hold primarily for sale to customers in the ordinary course of business, our gain would be subject to the 100% "prohibited transaction" tax.
We may perform additional, noncustomary services for tenants of our buildings through our taxable REIT subsidiary, including real estate or non-real-estate-related services; however, any earnings related to such services are subject to federal and state income taxes.
Legislation that modifies the rules applicable to partnership tax audits may affect us.

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Index to Financial Statements
The Bipartisan Budget Act of 2015, effective for taxable years beginning after December 31, 2017, requires Columbia OP (with respect to any period when it is classified as a partnership and not a disregarded entity for federal income tax purposes) and any subsidiary partnership to pay the hypothetical increase in partner-level taxes (including interest and penalties) resulting from an adjustment of partnership tax items on audit or in other tax proceedings, unless the partnership elects an alternative method under which the taxes resulting from the adjustment (and interest and penalties) are assessed at the partner level. Many uncertainties remain as to the application of these rules, including the application of the alternative method to partners that are REITs, and the impact they will have on us. However, it is possible that partnerships in which we invest may be subject to U.S. federal income tax, interest, and penalties in the event of a U.S. federal income tax audit as a result of these law changes.
Legislative or regulatory action could adversely affect investors.
In recent years, numerous legislative, judicial, and administrative changes have been made in the provisions of federal and state income tax laws applicable to investments similar to an investment in our shares. In particular, H.R. 1, which generally takes effect for taxable years beginning onthe comprehensive tax reform legislation enacted in December 2017 and commonly known as the Tax Cuts and Jobs Act, or after January 1, 2018 (subject to certain exceptions), makesTCJA, made many significant changes to the U.S. federal income tax laws that will profoundly impact the taxation of individuals and corporations (including both regular C corporations and corporations that have elected to be taxed as REITs). A number of changes that affect noncorporate taxpayers will expire at the end of 2025 unless Congress acts to extend them. These changes will impact us and our shareholdersstockholders in various ways, some of which are adverse or potentially adverse compared to prior law. To date,Although the IRS has issued only limited guidance with respect to certainmany of the new provisions, and there are numerous interpretive issues that will require further guidance. It is highly likely that technicalTechnical corrections legislation willmay be needed to clarify certain aspects of the new law and give proper effect to Congressional intent. There can be no assurance, however, that technical clarifications or changes needed to prevent unintended or unforeseen tax consequences will be enacted by Congress in the near future. Additional changes to tax laws are likely to continue to occur in the future, and we cannot assure investors that any such changes will not adversely affect the taxation of our stockholders. Any such changes could have an adverse effect on an investment in shares or on the market value or the resale potential of our properties. Investors are urged to consult with their own tax advisor with respect to the impact of recent legislation on ownership of shares and the status of legislative, regulatory, or administrative developments and proposals, and their potential effect on ownership of shares.
To maintain our REIT status, we may be forced to borrow funds or dispose of assets during unfavorable market conditions to make distributions to our stockholders, which could increase our operating costs and decrease the value of an investment in us.
We intend to make distributions to our stockholders to comply with the requirements of the Code for REITs and to minimize or eliminate our corporate tax obligations; however, differences between the recognition of taxable income and the actual receipt of cash could require us to sell assets or borrow funds on a short-term or long-term basis to meet the distribution requirements of the Code. Certain types of assets generate substantial disparity between taxable income and available cash, such as real estate that has been financed through financing structures which require some or all of available cash flows to be used to service borrowings. In addition, changes made by H.R. 1TCJA will require us to accrue certain income for U.S. federal income tax purposes no later than when such income is taken into account as revenue on our financial statements (subject to an exception for certain income that is already


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subject to a special method of accounting under the Internal Revenue Code). This could cause us to recognize taxable income prior to the receipt of the associated cash. H.R. 1TCJA also includes limitations on the deductibility of certain compensation paid to our executives, certain interest payments, and certain net operating loss carryforwards, each of which could potentially increase our taxable income and our required distributions. As a result, the requirement to distribute a substantial portion of our taxable income could cause us to: (1) sell assets in adverse market conditions, (2) borrow on unfavorable terms, or (3) distribute amounts that would otherwise be invested in future acquisitions, capital expenditures, or repayment of debt, in order to comply with REIT requirements. Any such actions could increase our costs and reduce the value of our common stock. Further, we may be required to make distributions to our stockholders when it would be more advantageous to reinvest cash in our business or when we do not have funds readily available for distribution. Compliance with REIT qualification requirements may, therefore, hinder our ability to operate solely on the basis of maximizing profits.

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Index to Financial Statements
Dividends payable by REITs do not qualify for the reduced tax rates available for some dividends.
The maximum federal tax rate (not including the Medicare Contribution Tax on unearned income) applicable to income from "qualified dividends" payable to U.S. stockholders that are individuals, trusts, and estates is 20%. Dividends payable by REITs, however, generally are not eligible for the 20% rate. However, under the TCJA, for taxable years beginning after December 31, 2017 and before January 1, 2026, individuals, trusts, and estates generally may deduct up to 20% of ordinary REIT dividends. Although these rules do not adversely affect the taxation of REITs or dividends payable by REITs, investors who are individuals, trusts, and estates may perceive investments in REITs to be relatively less attractive than investments in the stocks of non-REIT corporations that pay dividends.
To maintain our REIT status, we may be forced to forego otherwise attractive opportunities, which could delay or hinder our ability to meet our investment objectives and lower the return to our stockholders.
To qualify as a REIT, we must satisfy tests on an ongoing basis concerning, among other things, the sources of our income, the nature of our assets, and the amounts we distribute to our stockholders. We may be required to make distributions to stockholders at times when it would be more advantageous to reinvest cash in our business or when we do not have funds readily available for distribution. Compliance with the REIT requirements may hinder our ability to operate solely on the basis of maximizing profits.
If a transaction intended to qualify as a Section 1031 Exchange is later determined to be taxable, or if we are unable to identify and complete the acquisition of suitable replacement property to effect a Section 1031 Exchange, we may face adverse consequences.
From time to time we may seek to dispose of properties in transactions that are intended to qualify as tax-deferred "like-kind exchanges" under Section 1031 of the Code (a "Section 1031 Exchange"). It is possible that the qualification of a transaction as a Section 1031 Exchange could be successfully challenged and determined to be currently taxable. It is also possible that we are unable to identify and complete the acquisition of suitable replacement property to effect a Section 1031 Exchange. In any such case, our taxable income and earnings and profits would increase. This could increase the dividend income to our stockholders by reducing any return of capital they received. In some circumstances, we may be required to pay additional dividends or, in lieu of that, corporate income tax, possibly including interest and penalties. As a result, we may be required to borrow funds in order to pay additional dividends or taxes, and the payment of such taxes could cause us to have less cash available to distribute to our stockholders. In addition, if a Section 1031 Exchange were later to be determined to be taxable, we may be required to amend our tax returns for the applicable year in question, including any information reports we sent our stockholders. Moreover, it is possible that legislation could be enacted that could modify or repeal the laws with respect to Section 1031 Exchanges, which could make it more difficult or not possible for us to dispose of properties on a tax deferred basis.
Further, as a result of changes made by the TCJA, like-kind exchanges are only permitted with respect to real property. The changes generally apply to exchanges completed after December 31, 2017, unless the property was disposed of or received in the exchange on or before such date. If a material amount of personal property is associated with the real property that we have disposed of in a like-kind exchange, the like-kind exchange provisions will be less beneficial than under prior law.
We face possible adverse state local tax audits and changes in state and local tax law.
Because Columbia Property Trust operates as a REIT, it is generally not subject to federal income taxes, but we are subject to certain state and local taxes. From time to time, changes in state and local tax laws or regulations are enacted, which may result in an increase in our tax liability. A shortfall in tax revenues for states and municipalities in which we operate may lead to an increase in the frequency and size of such changes. If such changes occur, we may be required to pay additional taxes on our assets or income. These increased tax costs could adversely affect our financial condition and results of operations and the amount of cash available for the payment of dividends and distributions to our security holders.


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ITEM 1B.UNRESOLVED STAFF COMMENTS
Index to Financial Statements
ITEM 1B.UNRESOLVED STAFF COMMENTS
Not applicable.

ITEM 2.PROPERTIES
ITEM 2.PROPERTIES
Overview
As of December 31, 2017,2019, we owned 1917 operating properties and three properties under development or redevelopment, of which 1413 were wholly owned and fiveseven were owned through unconsolidated joint ventures. These properties are located primarily in New York, San Francisco, and Washington, D.C., and Atlanta and were approximately 96.2%97.1% leased as of December 31, 2017.2019.
Property Statistics
The tables below include statistics for the 1412 consolidated operating properties, thatwhich we own directly, and our proportional share of the annualized lease revenue and rentable square feet for the five operating properties we own through consolidated and unconsolidated joint ventures. Annualized2019 annualized lease revenue is an operating metric, calculated as (i) annualized rental payments (defined as base rent plus operating expense reimbursements, excluding rental abatements) for executed and commenced leases as of December 31, 2017,2019, as well as leases executed but not yet commenced for vacant space that will commence within 12 months, and (ii) annualized parking revenues, payable either under the terms of an executed lease or vendor contract ("2019 Annualized Lease Revenue"). 2019 Annualized Lease Revenue excludes rental payments for executed leases that have not yet commenced for space covered by an existing lease.


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The following table shows lease expirations of our office properties as of December 31, 2017,2019, during each of the next 10 years and thereafter. This table assumes no exercise of renewal options or termination rights. 
Year of Lease ExpirationRentable
Square Feet
(in thousands)
2019 Annualized
Lease Revenue
(in thousands)
Percentage of
2019 Annualized
Lease Revenue
Vacant179  $—  — %
2020129  10,012  %
2021517  31,033  %
2022445  25,534  %
2023456  36,818  10 %
2024322  27,703  %
2025704  52,922  14 %
2026818  44,024  12 %
2027203  16,292  %
202892  7,445  %
2029238  18,833  %
Thereafter1,985  97,884  27 %
6,088  $368,500  100 %

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Index to Financial Statements
Year of Lease Expiration
Rentable
Square Feet
(in thousands)
 2017 Annualized
Lease Revenue
(in thousands)
 Percentage of
2017 Annualized
Lease Revenue
Vacant307
 $
 %
201894
 6,315
 2%
2019167
 12,583
 3%
2020532
 25,317
 7%
20211,787
 64,317
 17%
2022475
 24,978
 7%
2023529
 31,631
 8%
2024256
 18,701
 5%
2025783
 56,036
 15%
2026786
 35,399
 9%
2027185
 13,777
 4%
Thereafter2,257
 94,123
 23%
 8,158
 $383,177
 100%
The following table shows the geographic locations of our office properties as of December 31, 2017.2019. For more information about our geographic locations, see Note 14, 15, Segment Information, of the accompanying consolidated financial statements.
LocationLeased
Square Feet
(in thousands)
2019 Annualized
Lease Revenue
(in thousands)
Percentage of
2019 Annualized
Lease Revenue
New York  2,031  $143,493  39 %
San Francisco  1,675  124,381  34 %
Washington, D.C.  860  60,498  16 %
Boston  272  16,308  %
Los Angeles  247  8,825  %
All other markets  824  14,995  %
5,909  $368,500  100 %
Location Leased
Square Feet
(in thousands)
 2017 Annualized
Lease Revenue
(in thousands)
 Percentage of
2017 Annualized
Lease Revenue
New York $2,388
 147,318
 38%
San Francisco 1,663
 106,747
 28%
Washington, D.C. 846
 53,696
 14%
Atlanta 1,656
 40,509
 11%
Boston 225
 12,081
 3%
Los Angeles 249
 8,256
 2%
Other 824
 14,570
 4%
  $7,851
 383,177
 100%

The following table shows the industry breakdown of our office tenants as of December 31, 2017.2019.
IndustryLeased
Square Feet
(in thousands)
2019 Annualized
Lease Revenue
(in thousands)
Percentage of
2019 Annualized
Lease Revenue
Business Services  1,212  $97,067  26 %
Depository Institutions  889  39,542  11 %
Engineering & Management Services  481  29,417  %
Nondepository Institutions  392  26,363  %
Legal Services  269  24,222  %
Security & Commodity Brokers201  16,642  %
Electric, Gas & Sanitary Services841  16,470  %
Real Estate237  15,114  %
Holding and Other Investment Offices118  8,260  %
Insurance Agents, Brokers & Service121  7,399  %
Other(1)
1,148  88,004  24 %
5,909  $368,500  100 %
(1)No more than 2% of 2019 Annualized Lease Revenue is attributable to any individual industry.

Industry Leased
Square Feet
(in thousands)
 2017 Annualized
Lease Revenue
(in thousands)
 Percentage of
2017 Annualized
Lease Revenue
Business Services $1,281
 88,033
 23%
Depository Institutions 1,021
 42,242
 11%
Engineering & Management Services 495
 28,591
 8%
Communications 1,010
 26,135
 7%
Legal Services 303
 23,305
 6%
Nondepository Institutions 388
 22,752
 6%
Health Services 476
 21,395
 6%
Electric, Gas, and Sanitary Services 877
 17,954
 5%
Security & Commodity Brokers 160
 11,594
 3%
Real Estate 200
 11,062
 3%
Other(1)
 1,640
 90,114
 22%
  $7,851
 383,177
 100%
26
(1)
No more than 2% is attributable to any individual industry.


Page 17


The following table shows the major tenants of our operating properties as of December 31, 2017.2019.
Tenant2019 Annualized
Lease Revenue
(in thousands)
Percentage of
2019 Annualized
Lease Revenue
Pershing  $18,712  %
Twitter  17,398  %
Wells Fargo  15,658  %
Yahoo!  15,142  %
Westinghouse Electric  14,995  %
DocuSign  12,751  %
Snap  12,385  %
WeWork7,954  %
DLA Piper7,552  %
Other(1)
245,953  68 %
$368,500  100 %
(1)No more than 2% of 2019 Annualized Lease Revenue is attributable to any individual tenant.

ITEM 3.LEGAL PROCEEDINGS
Tenant 2017 Annualized
Lease Revenue
(in thousands)
 Percentage of
2017 Annualized
Lease Revenue
AT&T $22,579
 6%
Wells Fargo 20,522
 5%
Pershing 18,251
 5%
Twitter 15,894
 4%
NYU 15,277
 4%
Westinghouse Electric 14,570
 4%
Yahoo! 14,556
 4%
Other(1)
 261,528
 68%
  $383,177
 100%
(1)
No more than 2% is attributable to any individual tenant.
ITEM 3.LEGAL PROCEEDINGS
From time to time, we are party to legal proceedings, which arise in the ordinary course of our business. We are not currently involved in any legal proceedings of which the outcome is reasonably likely to have a material adverse effect on our results of operations or our financial condition, nor are we aware of any such legal proceedings contemplated by governmental authorities.

ITEM 4.MINE SAFETY DISCLOSURES
ITEM 4.MINE SAFETY DISCLOSURES
Not applicable.



Page 1827

Index to Financial Statements

PART II

ITEM 5.MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES
ITEM 5.MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES
Market Information and Holders
Our common stock was listed on the NYSE on October 10, 2013 under the symbol "CXP." Prior to October 10, 2013, our common stock was not listed on a national securities exchange, and there was no established public trading market for our shares. As of January 31, 2018,2020, we had approximately 119.9115.2 million shares of common stock outstanding held by approximately 54,00043,400 stockholders of record.
The closing high and low prices for our stock and dividends declared during 2017 and 2016 were as follows:
 High Low Dividends
2017 Quarters:     
First$23.43
 $21.20
 $0.20
Second$23.13
 $21.45
 $0.20
Third$22.63
 $20.62
 $0.20
Fourth$23.16
 $20.94
 $0.20
2016 Quarters:     
First$23.20
 $19.81
 $0.30
Second$22.77
 $20.20
 $0.30
Third$24.63
 $21.24
 $0.30
Fourth$22.22
 $20.47
 $0.30
Distributions
We intend to make distributions each taxable year (not including a return of capital for federal income tax purposes) equal to at least 90% of our taxable income. One of our primary goals is to pay regular quarterly distributions to our stockholders. The amount of distributions paid and the taxable portion thereof in prior periods are not necessarily indicative of amounts anticipated in future periods.
The amount of distributions to common stockholders is determined by our board of directors and is dependent upon a number of factors, including funds deemed available for distribution, based principally on our current and future projected operating cash flows reduced by capital requirements necessary to maintain our existing portfolio. In determining the amount of distributions to common stockholders, we also considerportfolio, our future capital needs, andour future sources of liquidity, as well asand the annual distribution requirements necessary to maintain our status as a REIT under the Code. Investments in new property acquisitions and first-generation capital improvements, as well as equity repurchases, are generally funded with recycled capital proceeds from property sales, debt, or cash on hand. Our board of directors maintained a $0.20 dividend for the first three quarters of 2019 and declared a $0.21 dividend for the fourth quarter of 2019, which was paid on January 7, 2020.




Page 1928


Performance Graph
The following graph compares the cumulative total return of our common stock with the S&P 500 Index, Morgan Stanley REIT Index, and the FTSE NAREIT US Real Estate Index, for the period beginning on October 10, 2013 (the date of our initial listing on the NYSE) through December 31, 2016. Beginning with the year-ended December 31, 2017, we have selectedand the FTSE NAREIT Equity Office Index to replacefor the FTSE NAREIT US Real Estate Index to measure our relative total stockholder return. The FTSE NAREIT Equity Office Index is used as the basis for measuring our equity compensation.period beginning on December 31, 2014 through December 31, 2019. The graph assumes a $100$100.00 investment in each of the indices on October 10, 2013,December 31, 2014, and the reinvestment of all dividends.
cxp-20191231_g2.jpg
IndexDecember 31, 2014December 31, 2015December 31, 2016December 31, 2017December 31, 2018December 31, 2019
Columbia Property Trust$100.00  $97.23  $94.56  $104.17  $91.06  $102.23  
S&P 500 Index$100.00  $101.37  $113.49  $138.26  $132.19  $173.80  
Morgan Stanley REIT Index$100.00  $102.52  $111.34  $116.98  $111.64  $140.48  
FTSE NAREIT US Real Estate Index$100.00  $103.05  $111.13  $115.46  $111.51  $138.66  
FTSE NAREIT Equity Office Index$100.00  $100.25  $113.42  $119.46  $102.12  $134.18  

Index October 10, 2013 December 31, 2013 December 31, 2014 December 31, 2015 December 31, 2016 December 31, 2017
Columbia Property Trust $100.00
 $112.10
 $119.00
 $115.70
 $112.50
 $124.00
S&P 500 Index $100.00
 $109.70
 $124.70
 $126.40
 $141.50
 $172.40
Morgan Stanley REIT Index $100.00
 $97.70
 $127.38
 $130.60
 $141.90
 $149.00
FTSE NAREIT US Real Estate Index $100.00
 $97.68
 $127.40
 $131.30
 $141.60
 $147.10
FTSE NAREIT Equity Office Index $100.00
 $99.42
 $125.13
 $125.49
 $142.01
 $149.46
`


29

Page 20


Share Repurchases
Our board of directors approved a stock repurchase program, which authorized us to buy up to $200 million of our common stock from September 4, 2015 through September 4, 2017 (the "2015 Stock Repurchase Program"); and our board of directors authorized a second stock repurchase program to purchase up to an aggregate of $200.0 million of our common stock from September 4, 20172019 through September 4, 20192021 (the "2017"2019 Stock Repurchase Program").
During the quarter ended December 31, 2017,2019, we did not purchase or retire anyrepurchased and retired the following shares in accordance with the 20172019 Stock Repurchase Program. Activity relatesProgram:
PeriodTotal Number
of Shares
Purchased
Average
 Price Paid 
per Share
Total Number of Shares Purchased as Part of Publicly Announced Plan
Maximum Approximate Dollar Value Available for Future Purchase(1)
October 2019463,399  $20.22  463,399  $190,631,582  
November 20191,152,400  $20.93  1,152,400  $166,515,922  
December 2019—  $—  —  $166,515,922  
(1)Amounts available for future purchase relate only to our 2019 Stock Repurchase Program and represent the remittanceremainder of sharesthe $200 million authorized by our board of directors for income taxes associated with accelerated vesting under the LTIP (see Note 8, Equity, to the accompanying consolidated financial statements).share repurchases.

Period 
Total Number
of Shares
Purchased
 
Average
 Price Paid 
per Share
 Total Number of Shares Purchased as Part of Publicly Announced Plan 
Maximum Approximate Dollar Value Available for Future Purchase(2)
October 2017 
 $
 
 $194,826,742
November 2017(1)
 336
 $22.77
 
 $194,826,742
December 2017(1)
 15,885
 $22.95
 
 $194,826,742
30
(1)
All activity for November and December 2017 relates to the remittance of shares for income taxes associated with accelerated vesting of certain stock grants made under the LTIP (See Note 8, Equity, to the accompanying consolidated financial statements).
(2)
Amounts available for future purchase relate only to our 2017 Stock Repurchase Program and represent the remainder of the $200 million authorized by our board of directors for share repurchases.



Page 21


ITEM 6.SELECTED FINANCIAL DATA
ITEM 6.SELECTED FINANCIAL DATA
The following selected financial data of Columbia Property Trust for 2019, 2018, 2017,, 2016,, 2015, 2014, and 20132015 should be read in conjunction with the accompanying consolidated financial statements and related notes in Item 8, Financial Statements and Supplementary Data, hereof (amounts in thousands, except per-share data).
As of December 31,
20192018201720162015
Total assets$4,244,945  $4,173,993  $4,511,539  $4,299,793  $4,678,118  
Total stockholders' equity$2,628,617  $2,741,016  $2,531,936  $2,502,768  $2,614,194  
Outstanding debt(1)
$1,484,000  $1,332,000  $1,674,176  $1,424,602  $1,735,063  
Outstanding long-term debt(1)
$1,484,000  $1,332,000  $1,302,000  $1,302,602  $1,577,063  
Obligations under capital leases$—  $—  $120,000  $120,000  $120,000  
Years Ended December 31,
20192018201720162015
Total revenues$288,837  $297,943  $289,000  $473,543  $566,065  
Income (loss) from unconsolidated joint venture$8,004  $8,003  $2,651  $(7,561) $(1,142) 
Net income attributable to common stockholders of Columbia Property Trust$9,197  $9,491  $176,041  $84,821  $44,619  
Net cash provided by operating activities$137,443  $97,625  $61,924  $193,091  $223,080  
Net cash provided by (used in) investing activities$(170,309) $375,730  $(347,723) $525,613  $(576,699) 
Net cash provided by (used in) financing activities$28,051  $(465,804) $79,281  $(535,264) $263,474  
Investments in real estate (acquisitions, earnest money deposits, capital projects)$(520,122) $(94,067) $(691,574) $(39,521) $(1,145,402) 
Investments in unconsolidated joint ventures$(17,134) $(38,763) $(369,043) $(16,212) $(5,500) 
Distributions paid(2)
$(93,480) $(95,056) $(109,561) $(148,474) $(112,570) 
Stock repurchases(2)(3)
$(35,917) $(72,495) $(59,462) $(53,986) $(17,057) 
Net debt and bond proceeds (repayments)(2)
$152,000  $(293,175) $249,573  $(311,769) $378,995  
Per Weighted-Average Common Share Data:
Net income attributable to common stockholders – basic$0.08  $0.08  $1.45  $0.68  $0.36  
Net income attributable to common stockholders – diluted$0.08  $0.08  $1.45  $0.68  $0.36  
Distributions declared$0.81  $0.80  $0.80  $1.20  $1.20  
Weighted-average common shares
outstanding – basic
116,261  117,888  120,795  123,130  124,757  
Weighted-average common shares
outstanding – diluted
116,458  118,311  121,159  123,228  124,847  
(1)Excludes discounts and deferred financing costs.
(2)Activity is presented on a cash basis. Please refer to our accompanying consolidated statements of cash flows.
(3)Stock repurchases were made under board-approved stock repurchase plans or in settlement of taxes related to stock compensation.



 As of December 31,
 2017 2016 2015 2014 2013
Total assets(1)
$4,511,539
 $4,299,793
 $4,678,118
 $4,734,240
 $4,587,301 
Total stockholders' equity$2,531,936
 $2,502,768
 $2,614,194
 $2,733,478
 $2,787,823 
Outstanding debt$1,674,176
 $1,424,602
 $1,735,063
 $1,680,066
 $1,489,179 
Outstanding long-term debt$1,302,000
 $1,302,602
 $1,577,063
 $1,469,245
 $1,477,563 
Obligations under capital leases$120,000
 $120,000
 $120,000
 $120,000
 $120,000 
           
 Years Ended December 31,
 2017 2016 2015 2014 2013
Total revenues(2)
$289,000
 $473,543
 $566,065
 $540,797
 $526,578 
Revenues from discontinued operations(2)
$
 $
 $
 $119
 $60,046 
Income (loss) from unconsolidated joint venture$2,651
 $(7,561) $(1,142) $
 $ 
Net income$176,041
 $84,821
 $44,619
 $92,635
 $15,720 
          
Net cash provided by operating activities$61,924
 $193,091
 $223,080
 $236,906
 $218,329 
Net cash provided by (used in) investing activities$(347,723) $525,613
 $(576,699) $(23,788) $495,389 
Net cash provided by (used in) financing activities$79,281
 $(535,264) $263,474
 $(163,183) $(667,417)
Distributions paid(3)
$109,561
 $148,474
 $112,570
 $149,962
 $191,473 
Net proceeds raised through issuance of our common stock(3)
$
 $
 $
 $
 $46,402 
Stock repurchases(3)(4)
$(59,462) $(53,986) $(17,057) $
 $(349,843)
Net debt and bond proceeds (repayments)(3)
$249,573
 $(311,769) $378,995
 $(11,739) $(160,940)
Acquisitions, earnest money paid, and investments in real estate(3)
$(691,574) $(39,521) $(1,145,402) $(416,991) $(44,856)
Per Weighted-Average Common Share Data:         
Net income – basic$1.45
 $0.68
 $0.36
 $0.74
 $0.12 
Net income – diluted$1.45
 $0.68
 $0.36
 $0.74
 $0.12 
Distributions declared$0.80
 $1.20
 $1.20
 $1.20
 $1.44 
Weighted-average common shares
outstanding – basic
120,795
 123,130
 124,757
 124,860
 134,085 
Weighted-average common shares
outstanding – diluted
121,159
 123,228
 124,847
 124,918
 134,085 
31
(1)
The amounts for 2014 and 2013 have been adjusted to conform with 2017, 2016, and 2015 presentation by reclassifying debt issuance costs, other than those related to our revolving credit facility, from total assets to an offset to outstanding debt.
(2)
The amounts for 2014 and 2013 have been adjusted to classify revenues generated by certain sold properties as discontinued operations.
(3)
Activity is presented on a cash basis. Please refer to our accompanying consolidated statements of cash flows.
(4)
Stock repurchases in 2013 relate to redemptions under a tender offer and a redemption plan in place prior to our listing. Stock repurchases in 2017, 2016, and 2015 were made under board-approved stock repurchase plans or in settlement of taxes related to stock compensation.




Page 22


ITEM 7.MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
ITEM 7.MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis should be read in conjunction with the Selected Financial Data in Item 6, Selected Financial Data, above and our accompanying consolidated financial statements and notes thereto. See also Cautionary"Cautionary Note Regarding Forward-Looking StatementsStatements" preceding Part I.

Executive Summary
On January 24, 2020, we acquired Normandy, a vertically integrated real estate company focused in New York; Boston; and Washington, D.C., and general partnership interests in three active real estate funds, for approximately $100 million, exclusive of transaction and closing costs. We believe that the acquisition of Normandy will further our strategic initiatives by strengthening our platform with additional development and redevelopment expertise, deal sourcing, other key capabilities, and by increasing our access to capital through Normandy's investor relationships.
Our primary strategic objective is to generate long-term shareholderstockholder returns from a combination of growing cash flows and appreciation in the values of our properties, by owningproperties. We own and operatingoperate high-quality office properties principally located in high-barrier-to-entry markets. We concentrate onmarkets, primarily New York; San Francisco; Washington, D.C.; and Boston. Our approach is to own office buildings that are competitive within the top tier of their markets or that will be repositioned as such through value-add initiatives. In addition, ourinitiatives, including development or redevelopment. Our investment objectives include optimizing our portfolio allocation between stabilized investments and more growth-oriented, value-add investments and development projects with an emphasis on central business districts and multi-tenant buildings.
We recently completedOver the past several years, we have undertaken a multi-year capital recycling program that has involved selling more than 50 properties in geographically dispersed markets for aggregate proceeds of $3.6$4.4 billion, and reinvested this capitalreinvesting those proceeds in New York, San Francisco, Washington, D.C., and Boston. During the second half of 2017, we executed the following transactions:
On July 6, 2017, we formed a strategic partnership with Allianz Real Estate of America LLC ("Allianz") to increase our operating scale in key markets by freeing-up capital for additional investment. We consummated the partnership by simultaneously selling a 22.5% interest in two of our San Francisco properties, 333 Market Street and University Circle, to Allianz for $234.0 million, and by acquiring a 49.5% interest in 114 Fifth Avenue in Manhattan from Allianz for $108.9 million.core markets. In February 2018, we sold an additional 22.5% interest in 333 Market Street and University Circle to Allianz for $235.3 million.
On October 11, 2017,December 2019, we acquired a 55% interest in 1800 Mfor $205.5 million, 101 Franklin Street, a 10-story16-story, 235,000-square-foot office building in Washington, D.C., for $231.6 million through a joint venture with Allianz.
On October 11, 2017,Manhattan that will be fully redeveloped; and we acquired 245-249 West 17th Street, two interconnected 12- and six-story towers totaling 281,000 square feet of office and retail space, and 218 West 18thfor $238.9 million, 201 California Street, a 12-story, 166,000-square-foot17-story, 252,000-square-foot office building,tower in New YorkSan Francisco that is 99% leased to 34 tenants. In January 2020, we sold Cranberry Woods Drive in Pittsburgh for $514.1a gross sale price of $180.0 million.
On November 28, 2017, we acquired 149 Madison Avenue in New York, a 12-story, 127,000-square-foot office building for $87.7 million, subject to a ground lease that expired in January 2018. We are planningcontinuing to redevelop this property.
We will continue to pursue additional strategic investment opportunities in our target markets, as well as selective property dispositions.markets.
Leasing continuesOur portfolio is 97.1% leased, with less than 3% of our leases scheduled to beexpire in 2020. During 2019, we leased a key areatotal of focus for both vacant space and upcoming expirations. During 2017, we have leased over 2.0 million779,000 square feet of space, and addressed some of our most significant near-term expirations and vacancies:
At University Circle, we executedincluding a five-year, 119,000-square-foot lease renewal with DLA Piper to extend the lease to June 2023 and address our most significant 2018 expiration. At 650 California Street, we executed an eight-year, 86,000-square-foot lease with Affirm; a 22,000-square-foot renewal and expansion with an existing tenant; and a 12-year, 61,000-square-foot lease with WeWork.
In New York, at 229 West 43rd Street, we expanded Snap Inc.'s leased space by 58,000Pershing for 330,000 square feet to a total of 154,000 square feet, and extended the lease to 2032; and at 315 Park Avenue South, executed 68,000 square feet of new leasing, and a 17,000-square-foot lease expansion with Bustle Media Group.
In Atlanta, at One Glenlake, we executed a 10-year, 66,000-square-foot lease, and an 11-year, 40,000-square-foot lease renewal and expansion along with several smaller leases. At Three Glenlake, we executed a 12-year, 161,000-square-foot lease with Arby's. This lease is for a portion of the space vacated by the exisiting tenant, whose lease is expiring95 Columbus in December 2018. As a result of this leasing activity, the One & Three Glenlake property is 99.3% leased at year end.
In Pittsburgh, at Cranberry Woods, we executed a lease renewal and extension with Westinghouse, extending the 824,000-square-foot lease to 2032.


Page 23


Jersey City. We continue to maintain a strong and flexible balance sheet with a weighted-averagesheet. As of December 31, 2019, our debt-to-real-estate-asset ratio is 35.6%(1)(2); 91.5%(1) of our portfolio is unencumbered by mortgages; and our weighted average cost of borrowing of 3.35%during the quarter is 3.48%(1) per annum as of December 31, 2017. Our debt capital allocation favors unsecured borrowings with 92%(1) of our portfolio unencumbered by mortgages.annum. Our debt maturities are well-laddered over the next nineladdered, coming due in two to seven years, and $752.0$784.0 million of theour unsecured borrowings outstanding at year-end maycan be repaid prior to maturity in part or in full, without penalty. Our stock repurchase program allows us to take advantage of market opportunities fromFrom time to time when we believe our stock is undervalued.undervalued, we may take advantage of market opportunities by using our stock repurchase program to buy shares and return capital to our stockholders. During 2017,the fourth quarter of 2019, we repurchased $57.6 million of our common stock (2.71.6 million shares at an average price of $21.46$20.72 per share). Since September 2015,share, for aggregate purchases of $33.5 million. As of December 31, 2019, $166.5 million remains available under our stockcurrent repurchase programs, we have repurchased an aggregateprogram.

(1)Statistics include 100% of $121.4 millionall of common stockour consolidated properties and our ownership interest in the gross real estate assets and debt at an average priceproperties held through unconsolidated joint ventures as described in Note 4, Unconsolidated Joint Ventures, of $21.85 per share.the accompanying financial statements.
(1)
(2)On a net basis (i.e., reduced for cash on hand), our debt-to-real-estate-asset ratio is 34.8%.

32

Statistics include our ownership interest in the gross real estate assets and debt at properties held through unconsolidated joint ventures as described in Note 4, Unconsolidated Joint Ventures, of the accompanying financial statements; and exclude the 263 Shuman mortgage note, as the note matured in July 2017 and we are in the process of transferring the property to the lender.
Key Performance Indicators
Our operating results depend primarily upon the level of income generated by the leases at our properties. Occupancy and rental rates are critical drivers of our lease income. Over the last year, our portfolio percentage leased ranged from 90.6%97.4% at December 31, 20162018 to 96.2%97.1% at December 31, 2017.2019. The following table sets forth details related to the financial impact of our recent leasing activities which drive changesfor properties we consolidate and based on our proportionate share of properties owned through unconsolidated joint ventures:
Years Ended December 31,
20192018
Total number of leases46  59  
Square feet of leasing – renewal547,673  505,612  
Square feet of leasing – new175,167  567,288  
Total square feet of leasing722,840  1,072,900  
Average lease term (months)144  122  
Tenant improvement allowances, per square foot – renewal$54.95  $28.53  
Tenant improvements allowances, per square foot – new$81.93  $82.29  
Tenant improvements allowances, per square foot – all leases$61.87  $66.29  
Leasing commissions, per square foot – renewal$35.99  $24.04  
Leasing commissions, per square foot – new$44.19  $27.56  
Leasing commissions, per square foot – all leases$38.10  $26.51  
Rent leasing spread – renewal(1)
59.7 %11.6 %
Rent leasing spread – new(1)
61.2 %34.4 %
Rent leasing spread – all leases(1)
59.9 %23.1 %
(1)Rent leasing spreads are calculated based on the change in ourbase rental revenues:income measured on a straight-line basis; and, for new leases, only include space that has been vacant for less than one year.
 Years Ended December 31,
 2017 2016
Total number of leases62
 54
Square feet of leasing – renewal(1)
1,288,056
 275,653
Square feet of leasing – new(1)
716,513
 746,290
Total square feet of leasing2,004,569
 1,021,943
Average lease term (months)103
 316
Tenant improvements, per square foot – renewal$20.17
 $35.75
Tenant improvements, per square foot – new$85.55
 $162.03
Tenant improvements, per square foot – all leases$55.09
 $155.16
Leasing commissions, per square foot – renewal$12.37
 $14.31
Leasing commissions, per square foot – new$27.76
 $41.91
Leasing commissions, per square foot – all leases$20.59
 $40.41
    
Rent leasing spread – renewal(2)
28.2% 27.4%
Rent leasing spread – new(3)
63.3% 18.5%
Rent leasing spread – all leases(2)(3)
43.6% 19.0%
(1)
Includes our proportionate share of renewal and new leasing at properties owned through unconsolidated joint ventures.
(2)
Rent leasing spreads for renewal leases are calculated based on the change in base rental income measured on a straight-line basis.
(3)
Rent leasing spreads for new leases are calculated only for space that has been vacant less than one year, and are measured on a straight-line basis.
In 2017,2019, rent leasing spreads have been significantlywere positive (43.6%(59.9%) due, primarily related to extending the 119,000-square-foota 333,000-square-foot office lease renewal with DLA PiperPershing at University Circle95 Columbus in Jersey City, a 46,000-square-foot renewal lease at 221 Main Street in San Francisco, and leasing 230,000 square feeta 31,000-square-foot renewal lease at 650 California Street in San Francisco. The leasingFrancisco, and a 29,500-square-foot lease renewal at 218 West 18th Street in New York City. In 2019, tenant improvements included $120.00 per square foot for the 31,000-square foot lease renewal at 650 California Street has required significant tenant improvements; however, the net economic impact of leasingand $100.00 per square foot for a new 24,000-square-foot lease at 650 California Street is favorable. Positive221 Main Street. In 2018, rent leasing spreads for renewal leases are partially offset bywere positive (23.1%), primarily due to a slight rent roll-down for the 824,000-square-foot lease extension with Twitter for 215,000 square feet at 249 West 17th Street and amendment executedlease expansions for an aggregate of 199,000 square feet with WestinghouseArby's Restaurant Group, a subsidiary of Inspire Brands, at Cranberry WoodsOne & Three Glenlake Parkway in Pittsburgh in the fourth quarter of 2017.Atlanta. In 2016, we executed a new 390,000-square-foot, 30-year lease at our 222 East 41st Street property with NYU Langone Medical, which resulted in positive rent leasing spreads of 14.4%,2018, tenant improvements of $180.10improvement allowances include $115.00 per square foot and leasing commissions of $44.90 per square foot. Over the next 12 months, approximately 94,000for a new, 16.5-year lease with WeWork for 115,000 square feet at 149 Madison Avenue, which will entail a full-scale redevelopment of our leases (approximately 2% of our office portfolio based on revenues) are scheduled to expire.the property.

Liquidity and Capital Resources
Overview
Cash flows generated from the operation of our properties are primarily used to fund recurring expenditures and stockholder dividends. The amount of distributions to common stockholders is determined by our board of directors and is dependent upon a


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number of factors, including funds deemed available for distribution based principally on our current and future projected operating cash flows, reduced by capital requirements necessary to maintain our existing portfolio. In determining the amount of distributions to common stockholders, we also considerportfolio, our future capital needs, and future sources of liquidity, as well as the annual distribution requirements necessary to maintain our status as a REIT under the Code. We have transformed the composition of our portfolio by selling suburban assets and reinvesting in assets in high-barrier-to-entry markets that offer lower initial yields and higher potential for growth over time. As a result, our board of directors elected to adjust our payout level to be consistent with our current investment objectives, by reducing the quarterly stockholder distribution rate from $0.30 per share to $0.20 per share beginning with the first quarter of 2017. This rate has been maintained through the first quarter of 2018. We believe this dividend rate is sustainable over the near and medium term and offers the potential for growth over the long term.
Investments in new property acquisitions and first-generation capital improvements are generally funded with capital proceeds from property sales, debt, or cash on hand. Our board of directors declared a dividend for the fourth quarter of 2019 at a rate of $0.21 per share,

33

which represents a $0.01 per share, or 5.0%, increase from the prior quarter. The fourth quarter dividend was paid in January 2020. The board of directors declared a dividend for the first quarter of 2020 at the same rate, $0.21 per share, which will be paid in March 2020 to stockholders of record as of March 2, 2020.
Short-Term Liquidity and Capital Resources
During 2017,2019, we generated net cash flows from operating activities of $61.9$137.4 million, which consists primarily of receipts from tenants for rent and reimbursements, reduced by payments for operating costs, administrative expenses, interest expense, and lease inducements. During the same period, we paid total distributions to stockholders of $109.6$93.5 million, which included dividend payments for four quarters ($36.723.3 million for the fourth quarter of 20162018 and an aggregate of $72.9$70.2 million for the first three quarters of 2017)2019). Distributions to stockholders exceeded net cash flow from operating activities for 2017 primarily due to the impact of timing differences between selling assets and redeploying capital, and of new and renewal leases in free rent periods. Properties acquired in 2017 and recent leases are expected to contribute to additional cash flow from operations in future periods.
During 2017,2019, we sold five wholly owned propertiesreceived $375.0 million in net sales proceeds from the sale of Lindbergh Center and partial interestsOne & Three Glenlake Parkway and had $152.0 million in two additional properties for net proceeds of $737.6 million. We used these proceeds, along with a $300.0 million bridge loan and borrowings on our line of credit and term loans. These proceeds, along with cash on hand, were used to fund acquisitionsthe acquisition of three wholly owned properties201 California Street in San Francisco for $604.8 million and partial interests in two properties for $353.6$246.2 million; the repaymentacquisition of $197.8 million of mortgage notes;101 Franklin Street in New York for $206.8 million; and leasing and capital projects, including those at our consolidated and joint venture-owned propertiesventures, of $129.0 million; and share repurchases of $59.5$106.4 million.
Over the short-term,short term, we expect our primary sources of capital and liquidity to be operating cash flows, select property dispositions, and debt. We expect that our principal demands for funds will be property acquisitions, capital improvements to our existing portfolio, stockholder distributions, stock repurchases, stockholder distributions, operating expenses, and interest and principal payments on current and maturing debt. Onpayments. As of February 1, 2018,3, 2020, we sold a second 22.5% interest in University Circle and 333 Market Streethave access to our joint venture partner, Allianz, for $235.3 million. We used the proceeds from this transaction to reduce borrowing on$426.0 million under our Revolving Credit Facility and the $300 Million Bridge Loan, both described below.Facility. We believe that we will have adequate liquidity and capital resources to meet our other current obligations as they come due, including our remaining 2018 debt maturities of $202.9 million. As of February 2, 2018, we had access to $440 million of the borrowing capacity under the Revolving Credit Facility.due.
Long-Term Liquidity and Capital Resources
Over the long term, we expect that our primary sources of capital will include operating cash flows, select property dispositions, and proceeds from secured or unsecured borrowings.borrowing proceeds. We expect that our primary uses of capital will continue to include stockholder distributions; repaying or refinancing debt; acquisitions; and capital expenditures, such as building improvements, tenant improvements, and leasing costs.costs; and repaying or refinancing debt.
Consistent with our operational strategy and financing objectives, and operational strategy,over the long term we have generally maintained debt levels at less than 40% of the costundepreciated costs of our assets. We believe that preserving investor capital while generating stable current income is in the best interest of our stockholders. Our debt-to-real-estate-asset ratio is calculated using the outstanding debt balance and real estate at cost. As of December 31, 2017,2019, our debt-to-real-estate-asset ratio including 51%was approximately 35.6%. Our debt-to-real-estate-asset ratio includes 100% of theall consolidated assets and debt, and real estateour proportional share of assets (including basis adjustments) and debt held by our unconsolidated joint ventures.
As described below, our variable-rate indebtedness may use London Interbank Offering Rate ("LIBOR") as a benchmark for establishing the rate. LIBOR is expected to be discontinued at the Market Square Joint venture,end of 2021. The anticipated discontinuation of LIBOR will require lenders and their borrowers to transition from LIBOR to an alternative benchmark interest rate, which we own through an unconsolidated joint venture, was approximately 38.7%.
Bridge Loan
We have a $300.0 million, one-year, unsecured loan (the "$300 Million Bridge Loan"), whichmight increase the cost of our variable-interest debt instruments. At this time, no consensus exists as to what rate or rates may become acceptable alternatives to LIBOR, and it is setimpossible to maturepredict the effect of any such alternatives on November 27, 2018. The $300 Million Bridge Loan bears interest at either (ii) LIBOR, plus an applicable margin ranging from 0.90% to 1.75% for LIBORthe value of LIBOR-based variable-rate loans or (ii) an alternate base rate, plus an applicable margin ranging from 0.00% to 0.75%. The $300 Million Bridge Loan provides for one six-month extensionother financial arrangements. If LIBOR is discontinued as anticipated, or otherwise at our option, to May 24, 2019, subject to certain fees and the satisfaction of certain other conditions.


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our Revolving Credit Facility and term loan facilities provide for alternate interest rate calculations.
Unsecured Bank Debt
Our Revolving Credit Facility has a capacity of $500.0$650.0 million and matures in July 2019,January 2023, with two six-month extension options. As of December 31, 2017,2019, we had $152.0$334.0 million in outstanding borrowings on the Revolving Credit Facility. Amounts outstanding under the Revolving Credit Facility bear interest at the London Interbank Office Rate ("LIBOR"),LIBOR, plus an applicable margin ranging from 0.875%0.775% to 1.55%1.45% for LIBOR borrowings, or an alternate base rate, plus an applicable margin ranging from 0.00% to 0.55%0.45% for base rate borrowings, based on our applicable credit rating. The per annum facility fee on the aggregate revolving commitment (used or unused) ranges from 0.125% to 0.30%, also based on our applicable credit rating. Additionally, we have the ability to increase the capacity of the Revolving Credit Facility, along with the $300 Million Term Loan, whichas

34

described below, provides for four accordion options for an aggregate additional amount of up to $400$500 million, subject to certain limitations.
Term Loans
We have aOur $300.0 million unsecured term loan which matures in July 2020January 2024 (the "$300 Million Term Loan"), and along with the Revolving Credit Facility, provides for four accordion options for an aggregate amount of up to $400 million, subject to certain conditions. The $300 Million Term Loan bears interest, at our option, at either (i) LIBOR, plus an applicable margin ranging from 0.90%0.85% to 1.75%1.65% for LIBOR loans, or (ii) an alternate base rate, plus an applicable margin ranging from 0.00% to 0.75%0.65% for base rate loans, based on our applicable credit rating. The interest rate on the $300 Million Term Loan is effectively fixed with an interest rate swap agreement, which is designated as a cash flow hedge. Based on the terms of the interest rate swap and our current credit rating, the interest rate on the $300 Million Term Loan is effectively fixed at 2.55%.
We have aOur $150.0 million unsecured term loan which matures in July 2022 (the "$150 Million Term Loan"). The $150 Million Term Loan and bears interest, at our option, at either (i) LIBOR, plus an applicable margin ranging from 0.90% to 1.75% for LIBOR loans, or (ii) alternative base rate, plus an applicable margin ranging from 0.00% to 0.75% for base rate loans.loans, based on our applicable credit rating. The interest rate on the $150 Million Term Loan is effectively fixed with an interest rate swap agreement, which is designated as a cash flow hedge. Based on the terms of the interest rate swap and our current credit rating, the interest rate on the $150 Million Term Loan is effectively fixed at 3.07%.
Debt Covenants
TheAs of December 31, 2019, the $300 Million Term Loan, $300 Million Bridge Loan, the $150 Million Term Loan, and the Revolving Credit Facility contain the following restrictive covenants:covenants, which are defined in the debt agreements:
limitslimit the ratio of secured debt to total asset value as defined therein, to 40% or less;
requiresrequire the fixed charge coverage ratio as defined therein, to be at least 1.50:1.00;
limitslimit the ratio of debt to total asset value as defined therein, to 60% or less;less, or 65% or less following a material transaction;
requiresrequire the ratio of unencumbered adjusted net operating income, as defined therein, to unsecured interest expense, as defined therein,coverage ratio to be at least 1.75:1.00;
requireslimit the unencumbered leverage ratio of unencumbered asset value, as defined therein, to total unsecured debt, as defined therein, to be at least 1.66:1.00; and
requires maintenance of certain minimum tangible net worth balances.60% or less, or 65% or less following a material transaction.
As of December 31, 2017, we believe2019, we were in compliance with the restrictive covenants on these outstanding debt obligations.
Bonds Payable
In August 2016, we issued $350.0 million of 10-year, unsecured 3.650% senior notes at 99.626% of their face value (the "2026 Bonds Payable"). We received proceeds from the 2026 Bonds Payable, net of fees, of $346.4 million, which were used to prepay our $250 million bonds payable, originally due in April of 2018. The 2026 Bonds Payable require semi-annual interest payments in February and August based on a contractual annual interest rate of 3.650%. The principal amount of the 2026 Bonds Payable is due and payable on the maturity date, August 15, 2026.
In March 2015, we issued $350.0 million of 10-year, unsecured 4.150% senior notes at 99.859% of their face value (the "2025 Bonds Payable"). We received proceeds from the 2025 Bonds Payable, net of fees, of $347.2 million, a portion of which was used to repay a bridge loan, which was originated in January 2015. The 2025 Bonds Payable require semi-annual interest payments in April and October based on a contractual annual interest rate of 4.150%. The principal amount of the 2025 Bonds Payable is due and payable on the maturity date, April 1, 2025.
The restrictive covenants on the 2026 Bonds Payable and the 2025 Bonds Payable as defined pursuant to an indenture include:
a limitation on the ratio of debt to total assets, as defined, to 60%;
limits to our ability to incur debt if the consolidated income available for debt service to annual debt service charge, as defined, for four previous consecutive fiscal quarters is less than 1.5:11.50:1.00 on a pro forma basis;


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limits to our ability to incur liens if, on an aggregate basis for us, the secured debt amount would exceed 40% of the value of the total assets; and
a requirement that the ratio of unencumbered asset value, as defined, to total unsecured debt be at least 150% at all times.
As of December 31, 2017, we believe2019, we were in compliance with the restrictive covenants on the 2026 Bonds Payable and the 2025 Bonds Payable.

35

Debt Repayments, Maturities,Settlements and Interest Payments
During 2017 and 2016, we made the following debt repayments:
On August 17, 2017, we repaid the $124.8 million balance of the 650 California Street building mortgage note, which was originally scheduled to mature on July 1, 2019. Columbia Property Trust recognized a loss on early extinguishment of debt of $0.3 million related to unamortized deferred financing costs.
On March 10, 2017, we repaid the $73.0 million balance of the 221 Main Street building mortgage note, which was originally scheduled to mature on May 10, 2017. Columbia Property Trust recognized a loss on early extinguishment of debt of $45,000 related to unamortized deferred financing costs.
On October 3, 2016, a portion of the proceeds from the sale of the 80 Park Plaza Property was used to repay the $99.0 million remaining outstanding balance on our Revolving Credit Facility.
On September 2, 2016, the proceeds from the 2026 Bonds Payable, as described above, were used to redeem $250.0 million of seven-year, unsecured 5.875% senior notes due April 2018, including a $17.9 million make-whole payment recorded as an early loss on extinguishment of debt in the accompanying consolidated statement of operations.
On June 30, 2016, we used borrowings on the Revolving Credit Facility to repay the $39.0 million SanTan Corporate Center mortgage notes, which were scheduled to mature on October 11, 2016, resulting in the write-off of approximately $10,000 of related unamortized financing costs, which are included in loss on early extinguishment in the accompanying statements of operations.
On April 1, 2016, we repaid the $119.0 million remaining on a $300 million, six-month, unsecured loan, which was used to finance a portion of the 229 West 43rd Street Building acquisition in August of 2015 (the "2015 Bridge Loan"). The 2015 Bridge Loan was scheduled to mature on August 4, 2016. We recognized a loss on early extinguishment of debt of $82,000 related to unamortized deferred financing costs.
During 2017 and 2016,2019, we made interest payments of approximately $21.5$17.9 million and $27.8 million, respectively, related to our term loans, line of credit, and notes payable, and $27.3 million related to our bonds payable. There were no debt repayments in 2019. During 2017 and 2016,2018, we made the following debt repayments:
On December 14, 2018, we terminated both the $120.0 million development authority bonds and the corresponding obligations under capital leases related to One & Three Glenlake Parkway in Atlanta.
On December 7, 2018, concurrent with closing on the amendment and restatement of our term loan and revolving credit facility, we repaid the $300 million remaining balance on the $300 Million Term Loan, which includes a delayed-draw feature, allowing up to 12 months to fully draw the term loan.
On October 10, 2018, we paid the $20.7 million outstanding balance on the One Glenlake mortgage note two months prior to its original maturity date.
On April 13, 2018, we transferred 263 Shuman Boulevard to the lender in extinguishment of the $49.0 million loan principal, accrued interest paymentsexpense, and accrued property operating expenses, which resulted in a gain on extinguishment of $27.4debt of $24.0 million in the second quarter of 2018.
On February 2, 2018, we repaid $120.0 million of the outstanding balance on a bridge loan with disposition proceeds from the sale of a portion of University Circle and $28.0333 Market Street. On May 30, 2018, we repaid the remaining $180.0 million respectively,outstanding balance on our bonds payable.this bridge loan with disposition proceeds from the sale of 222 East 41st Street. The settlement of a $300 million bridge loan resulted in a $0.3 million loss on extinguishment of debt to write off the related unamortized deferred financing costs.
Contractual Commitments and Contingencies
As of December 31, 2017,2019, our contractual obligations will become payable in the following periods (in thousands):
Contractual ObligationsTotal20202021-20222023-2024Thereafter
Debt obligations(1)
$1,706,010  $—  $206,260  $799,750  $700,000  
Interest obligations on debt(1)(2)
266,792  59,713  113,317  67,774  25,988  
Operating lease obligations(3)
1,170,763  6,668  13,433  13,432  1,137,230  
Total$3,143,565  $66,381  $333,010  $880,956  $1,863,218  
Contractual Obligations Total 2018 2019-2020 2021-2022 Thereafter
Debt obligations(1)(2)
 $1,790,926
 $323,176
 $452,000
 $150,000
 $865,750
Interest obligations on debt(1)(3)
 319,920
 60,577
 95,856
 78,698
 84,789
Capital lease obligations(4)
 120,000
 
 
 120,000
 
Operating lease obligations(5)
 1,389,662
 9,222
 18,622
 18,872
 1,342,946
Total $3,620,508
 $392,975
 $566,478
 $367,570
 $2,293,485
(1)Includes our ownership share of the debt and interest obligations for the Market Square Joint Venture and the 799 Broadway Joint Venture, which we own through unconsolidated joint ventures. The Market Square Joint Venture has a $325.0 million mortgage loan on the Market Square Buildings, which bears interest at 5.07% and matures on July 1, 2023. We own a 51% interest in the Market Square Joint Venture. The 799 Broadway Joint Venture has $113.2 million outstanding on a construction loan, which has a total capacity of $187.0 million; bears interest at LIBOR, capped at 4.00%, plus 425 basis points; and matures on October 9, 2021. We own a 49.7% interest in the 799 Broadway Joint Venture. As of December 31, 2019, we guarantee equity contributions of $15.8 million to be made to the joint venture, under the 799 Broadway construction loan agreement (see Note 7, Commitments and Contingencies, to the accompanying financial statements).
(2)Interest obligations on variable-rate debt are measured at the rate at which they are effectively fixed with interest rate swap agreements (where applicable) or the rate in effect as of December 31, 2019. Interest obligations on all other debt instruments are measured at the contractual rate. See Item 7A, Quantitative and Qualitative Disclosures about Market Risk, for more information regarding our interest rate swaps.
(3)These obligations are related to ground leases at certain properties, including 49.5% of the ground lease obligation at 114 Fifth Avenue, based on our ownership interest in the unconsolidated joint venture that owns that property, and our corporate office lease. In addition to the amounts shown, certain lease agreements include provisions that, at the option of the tenant, may obligate us to expend capital to expand an existing property or provide other expenditures for the benefit of the tenant.

(1)
Includes 51% of the debt and interest obligations for the Market Square Joint Venture, which we own through an unconsolidated joint venture. The Market Square Joint Venture has a $325 million mortgage loan on the Market Square Buildings, which bears interest at 5.07% and matures on July 1, 2023. We guarantee $11.2 million of the Market Square Buildings mortgage loan (see Note 7, Commitments & Contingencies, to the accompanying financial statements).
(2)
Debt obligations exclude the $49.0 million 263 Shuman Boulevard mortgage note, which matured in July 2017. We are in the process of working to transfer this property to the lender in settlement of the mortgage note.
(3)
Interest obligations on variable-rate debt are measured at the rate at which they are effectively fixed with interest rate swap agreements (where applicable) or the rate in effect as of December 31, 2017. Interest obligations on all other debt instruments are measured at the contractual rate. See Item 7A, Quantitative and Qualitative Disclosure About Market Risk, for more information regarding our interest rate swaps.
(4)
Amounts include principal obligations only. We made interest payments on these obligations of $7.2 million during 2017, all of which was funded with interest income earned on the corresponding investments in development authority bonds.



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(5)
These obligations are related to ground leases at certain properties, including 49.5% of the ground lease obligation at 114 Fifth Avenue, based on our ownership interest in the unconsolidated joint venture that owns that property, and our corporate office lease. In addition to the amounts shown, certain lease agreements include provisions that, at the option of the tenant, may obligate us to expend capital to expand an existing property or provide other expenditures for the benefit of the tenant, including a commitment to contribute $54.7 million toward remaining leasehold improvements at our 222 East 41st Street property.
Results of Operations
Overview
As of December 31, 2017, Columbia Property Trust2019, we owned 1917 operating properties and three properties under development or redevelopment, of which 1413 were wholly owned and fiveseven were owned through unconsolidated joint ventures. These properties are located primarily in New York, San Francisco, and Washington, D.C., and Atlanta, and were approximately 96.2%97.1% leased as of December 31, 2017.2019. Our period-over-period operating results are heavily impacted by the real estate activities set forth in the Transaction Activity"Transaction Activity" section of Item 1, Business, including acquisitions and dispositions made directly and through unconsolidated joint ventures. Other than real estate transactions, we expect real estate operating income to vary, primarily based on leasing activity over the near term.

Comparison of the Year Ended December 31, 20172019 Versus the Year Ended December 31, 20162018
Rental income was $257.1Lease revenues were $276.1 million for 2017,2019, which represents a modest decrease from $366.2as compared with $283.3 million for 2016. The decrease is primarily due to2018, as the impact of dispositions ($94.321.6 million) and transferring University Circle and 333 Market Street to unconsolidated joint ventures ($24.4 million),was partially offset by theadditional revenues from lease commencements ($13.1 million) and recent property acquisitions in the fourth quarter of 2017 ($8.41.4 million). We expect future rental incomelease revenues to vary based on recent and future investing and leasing activities.
Tenant reimbursements and property operating costs were $23.5 million and $87.8 million, respectively, for 2017, which represents a decrease from $69.8 million and $155.0 million, respectively, for 2016. The decrease in tenant reimbursements is primarily due to dispositions ($35.5 million), transferring University Circle and 333 Market Street to unconsolidated joint ventures ($4.9 million), and the new net lease at 222 East 41st Street ($3.3 million). The decrease in property operating costs is primarily due to dispositions ($58.3 million), the new net lease at 222 East 41st Street ($9.9 million), and transferring University Circle and 333 Market Street to unconsolidated joint ventures ($5.5 million), partially offset by the acquisitions in the fourth quarter of 2017 ($2.2 million). Tenant reimbursements and property operating costs are expected to vary with future leasing activities and other changes in our portfolio.
Hotel income, net of hotel operating costs, was $(0.8) million for 2017, which represents a decrease as compared with $4.0 million for 2016, due to the sale of the Key Center Marriott on January 31, 2017.
Asset and property management fee income was $3.8relatively stable at $7.5 million and $7.4 million for 2017, which represents an increase as compared with $2.1 million for 2016. The increase is due to the asset2019 and property management services we began to provide to several properties owned in unconsolidated joint ventures in 2017, including 333 Market Street, University Circle, and 1800 M Street. Asset and property management fees have also been earned for services provided to the Market Square Joint Venture since its inception in the fourth quarter of 2015.2018, respectively. We anticipateexpect future asset and property management fee income to increase as we earn fees froma result of the newly established joint ventures for full periods (see Note 4, Unconsolidated Joint Ventures).Normandy Acquisition.
Other property income was $3.3$5.1 million for 2017,2019, and $7.3 million for 2018. The 2019 activity relates to administrative reimbursements. We expect other property income to increase as a result of the Normandy Acquisition.
Property operating costs were $93.3 million for 2019, which represents a decrease as compared with $12.8an increase from $88.8 million for 2016,2018, primarily due to earning an early termination fee of $6.8 million at 222 East 41st Streetincreases in June 2016property taxes and $4.0 million for other lease terminations in 2016. The terminated lease at 222 East 41st Street was replaced with a full-building lease, which commenced in the fourth quarter of 2016. Othertaxes. We expect property operating income is expectedcosts to vary in the future, based on additional lease restructuringrecent and future investing and leasing activities.
Asset and property management fee expenses were $0.9$0.6 million for 2017,2019, which represents a decrease as compared with $1.4from $0.9 million for 2016, primarily due2018, as a result of transitioning one of our properties from third-party to the sale of the Key Center Marriott in January 2017 ($0.4 million). Futureinternal management. We expect asset and property management fee expenses are expected to remain stablevary in the near term and may increase as a result of future based on investing activities.
Depreciation was $80.4$78.3 million for 2017,2019, which represents a modest decrease as compared with $108.5$81.8 million for 2016. The decrease is primarily due to2018, as the impact of dispositions ($24.56.3 million) and transferring University Circle and 333 Market Street to unconsolidated joint ventures ($6.6 million),was partially offset by capital projects across the portfolio ($2.2 million) and recent property acquisitions in the fourth quarter of 2017 ($2.30.4 million). Depreciation is expectedWe expect depreciation to vary based on recent and future investing activities.activities and capital projects.
Amortization was $32.4$27.9 million for 2017,2019, which represents a decrease as compared with $56.8$32.6 million for 2016. The decrease is primarily due to intangibles written off due to the early termination or expiration2018, as a result of leasesdispositions ($11.13.7 million) and lease terminations and extensions ($1.4 million), dispositionspartially offset by recent property acquisitions ($10.9 million), and transferring University Circle and 333 Market Street to unconsolidated joint ventures ($2.50.4 million). We expect future amortization to vary based on recent and future investing and leasing activities.

For 2019, we recognized the following impairment losses: $23.4 million in connection with changing the holding period expectations for Lindbergh Center; and $20.6 million in connection with exiting the Los Angeles market with the planned sale of Pasadena Corporate Park. For 2018, we recognized an impairment loss of $30.8 million in connection with changing our holding period expectations for 222 East 41st Street. We expect future impairment losses to depend primarily on our holding period intentions and any disposition strategies evaluated for our other properties.
General and administrative – corporate expenses were relatively stable at $32.8 million for 2019 and $33.0 million for 2018. We expect future general and administrative – corporate expenses to remain at similar or slightly increased levels as a result of the Normandy Acquisition.


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Effective July 1, 2017, we began to specifically identify generalGeneral and administrative costs incurred to manage assets owned by our unconsolidated joint ventures. The method for measuring aggregate general and administrative expenses has not changed. Aggregate general and administrativeventures expenses were $36.4$3.6 million for 2017,2019, which represents an increase as compared to $33.9with $3.1 million for 2016,2018, primarily due to additional vesting underexpanding our stock-based incentive plan ($3.0 million)team. We expect future general and expenses incurred for managingadministrative – unconsolidated joint ventures ($1.5 million), partially offset by prior-year costs incurred related to the development of our regional management platform ($1.2 million), prior-year lease termination activity ($0.5 million), and prior period bad debt expenses ($0.2 million). General and administrative expenses corporate are expected to remain at similar levels over the near term; and general and administrative expenses unconsolidated joint ventures are expected to vary as a result of future joint venture activity.investing activities.
For 2019, we recognized pre-acquisition costs of $6.4 million related to the Normandy transaction described in Note 16, Subsequent Events, of the accompanying consolidated financial statements. We expect to incur additional acquisition costs in connection with closing the transaction.
Interest expense was $60.5$43.2 million for 2017,2019, which represents a decrease as compared with $67.6$56.5 million for 2016, primarily due to mortgage note payoffs2018. The decrease results from the settlement of a capital lease obligation using the corresponding development authority bonds in December 2018 ($5.46.9 million), bond interest savings resulting from the issuance of the 2026 Bonds Payableprior-year debt repayments and redemption of the 2018 Bonds Payable in 2016settlements ($2.15.3 million), and an overall reduction in borrowings on our Revolving Credit Facility in the current periodinterest capitalization ($1.51.2 million). We expect interest expense to increasevary in the near term based on future financing activities.
We recognized a gain on extinguishment of debt of $23.3 million for 2018. In April 2018, we transferred 263 Shuman Boulevard to the lender in extinguishment of the related mortgage note, resulting in a $24.0 million gain on extinguishment of debt. In May 2018, we repaid the remaining outstanding balance on our bridge loan approximately six months early, resulting in a $0.3 million loss due to borrowingsthe write-off of related deferred financing costs; and in December 2018, we refinanced two of our debt facilities, resulting in a $0.3 million loss due to fund recent investingthe write-off of related deferred financing costs.We expect future gains or losses on extinguishments of debt to vary with financing activities.
Interest and other income was $9.5$0.2 million for 2017,2019, which represents an increasea decrease as compared with $7.3$6.9 million for 2016. The increase is due to earning interest on our large cash balance for the first nine months of 2017 ($2.2 million).2018. The majority of our interestthis income iswas earned on investments in development authority bonds, withwhich were used to settle a remaining term of approximately four years as ofcorresponding capital lease obligation in December 31, 2017.2018. Interest income earned on investments in development authority bonds iswas entirely offset by interest expense incurred on the corresponding capital leases. We expect interest and other income to decrease slightly overremain at similar levels in the near term as cash deposits were applied to recent investing activities.term.
We recognized a lossgain on early extinguishmentsale of debtunconsolidated joint venture interests of $0.3$0.8 million for 2018, related to the sale of an additional 22.5% interest in University Circle and $19.0 million333 Market Street joint ventures in 2017 and 2016, respectively. In 2017, we repaid two mortgage notes. resultingFebruary 2018, as further described in Note 3, Real Estate Transactions, to the write-off of the related deferred financing costs. In 2016, we incurred an early redemption premium on the settlement of the 2018 Bonds Payable of $17.9 million, and write-offs of deferred financing costs in connection with other early repayments.accompanying consolidated financial statements. We expect future gains or losses on early extinguishmentssales of debtunconsolidated joint venture interests to vary with financingfuture joint venture disposition activities.
We recognized incomeIncome from unconsolidated joint ventures of $2.7was flat at $8.0 million for 2017, which represents an increase2019 and 2018. We expect income from a loss onthe unconsolidated joint ventures of $(7.6) million for 2016. The increase is due to the July 2017 transfer of University Circle and 333 Market Street to unconsolidatedvary based on future joint ventures, in which we retained a 77.5% ownership interest; the July 2017 acquisition of a 49.5% interest in 114 Fifth Avenue; and the October 2017 acquisition of a 55.0% interest in 1800 M Street. Future income or loss from unconsolidated joint ventures will vary as a result of futureventure investing activities and leasing activity at the properties held inowned through unconsolidated joint ventures.
We recognized gains on sales of real estate assets of $175.5$42.0 million in 2017,2019, as a result of selling three propertiesOne & Three Glenlake Parkway in Houston, Texas, and the Key Center Tower and Marriott in Cleveland, Ohio in January 2017; and selling a 22.5% interest in each of the University Circle property and the 333 Market Street building in July 2017. We recognized gains on sales of real estate assets of $72.3 million in 2016, as a result of selling seven properties in separate transactions during the the year.April 2019. See Note 3, Real Estate Transactions, of the accompanying consolidated financial statements for additional details of these dispositions.details. We expect future gains on sales of real estate assets willto vary with disposition activity.
Net loss attributable to noncontrolling interests reflects the allocation of earnings from the 101 Franklin Street joint venture to our joint venture partner.
Net income attributable to stockholders of Columbia Property Trust was $176.0$9.2 million, or $1.45$0.08 per basic and diluted share, for 2017,2019, which represents an increase from $84.3a slight decrease as compared with $9.5 million, or $0.68$0.08 per basic and diluted share, for 2016.2018. The increasedecrease is primarily due to gainsprior-period gain on sale of real estate ($103.2 million) and financing activities resulting in interest savings in the current year and losses on early extinguishment of debt in the prior year ($25.823.3 million) and year-over-year impairment activity ($13.1 million), partially offset by lost income from sold propertiesthe current period gain on sale of One & Three Glenlake Parkway ($38.442.0 million). See the "Supplemental Performance Measures" section below for our same-store results compared with the prior year. We expect future earnings to vary primarily as a result of leasing activity at our existing properties and future investing activities.activity.


38

Comparison of the Year Ended December 31, 20162018 Versus the Year Ended December 31, 20152017
Rental income was $366.2 million for 2016, which representsFor a decrease from $436.0 million for 2015. The decrease is primarily due to current-yearcomparison of our operations between 2018 and prior-year dispositions ($53.0 million); transferring the Market Square Buildings to a joint venture in the fourth quarter2017, see our 2018 Annual Report on Form 10-K (the "Results of 2015 ($30.9 million);Operations" section of Item 7. Management's Discussion and vacancy at our 222 East 41st Street property for a portionAnalysis of 2016 ($7.4 million) while the building was being prepared for NYU's Langone Medical lease to commence, partially offset by additional rental income from the acquisitionFinancial Condition and Results of the 229 West 43rd Street Building in August 2015 ($19.9 million).
Tenant reimbursements and property operating costs were $69.8 million and $155.0 million, respectively, for 2016, which represents an increase from $99.7 million and $188.1 million, respectively, for 2015. The decrease in property operating costs is due to dispositions ($23.4 million) and the transfer of the Market Square Buildings to a joint venture ($16.4 million)Operations), partially offset by


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additional property operating costs from the acquisition of the 229 West 43rd Street Building ($6.6 million). The proportional decrease in tenant reimbursements is also due to dispositions ($17.3 million) and the transfer of the Market Square Buildings to a joint venture ($9.4 million), partially offset by additional tenant reimbursements from the acquisition of the 229 West 43rd Street Building ($2.9 million).
Hotel income, net of hotel operating costs, was $4.0 million for 2016, which represents a decrease as compared with $4.7 million for 2015, due to additional group bookings and meetings at the hotel.
Asset and property management fee income was $2.1 million for 2016, which represents an increase as compared with $0.6 million for 2015. We began earning such fees in October 2015, upon the formation of the Market Square Joint Venture.
Other property income was $12.8 million for 2016, which represents an increase as compared with $5.4 million for 2015, primarily due to an early termination at our 222 East 41st Street property ($6.8 million).
Asset and property management fees were $1.4 million for 2016, which represents a decrease as compared with $1.8 million for 2015, primarily due to transferring Market Square to a joint venture in the fourth quarter of 2015.
Depreciation was $108.5 million for 2016, which represents a decrease as compared with $131.5 million for 2015, primarily due to dispositions ($16.3 million) and transferring Market Square to a joint venture ($11.6 million), partially offset by additional depreciation from the acquisition of 229 West 43rd Street in August 2015 ($5.4 million).
Amortization was $56.8 million for 2016, which represents a decrease as compared with $87.1 million for 2015. The decrease is primarily due to dispositions ($16.1 million); intangibles written off related to the expiration or termination of leases ($9.8 million); and transferring Market Square to a joint venture ($5.9 million); partially offset by additional amortization from the acquisition of 229 West 43rd Street in August 2015 ($2.6 million).
General and administrative expenses corporate was $33.9 million for 2016, which represents an increase from $29.7 million for 2015. The increase is due to costs incurred to develop our regional management and investment platform ($2.9 million), and additional vesting under our stock-based incentive compensation plan ($1.0 million).
We incurred acquisition expenses of $3.7 million for 2015 in connection with acquiring three properties in January 2015 and the 229 West 43rd Street Building in New York in August 2015. See Note 3, Real Estate Transactions, to the accompanying financial statements for additional details. We adopted Accounting Standards Update 2017-01, Clarifying the Definition of a Business, in the fourth quarter of 2017. (See Note 2, Summary of Significant Accounting Policies, of the accompanying consolidated financial statements.) As a result, we capitalized acquisition costs related to fourth quarter 2017 acquisitions and do not anticipate incurring future expenses related to acquisitions of properties.
Interest expense was $67.6 million for 2016, which represents a decrease as compared with $85.3 million for 2015, primarily due to transferring the Market Square mortgage note to a joint venture ($13.6 million) and repaying mortgage loans ($5.4 million), partially offset by the 2025 Bonds Payable outstanding for the entire year ($3.0 million).
Interest and other income was stable at $7.3 million for 2016 and 2015.
We recognized a loss on interest rate swaps that do not qualify for hedge accounting treatment of approximately $1.1 million for 2015, primarily due to the settlement of the swap related to a $450 million term loan, which was replaced with other unsecured borrowings in July 2015.
We recognized a loss on early extinguishment of debt of $19.0 million and $3.1 million in 2016 and 2015, respectively. In 2016, we incurred an early redemption premium on the settlement of the 2018 Bonds Payable of $17.9 million, and write-offs of deferred financing costs in connection with other early repayments. In 2015, we incurred a prepayment premium of $2.1 million related to the early repayment of the 215 Diehl Building mortgage note, approximately two years prior to its maturity and write-offs of deferred financing costs in connection with other early repayments.
We recognized a loss from unconsolidated joint ventures of $7.6 million for 2016, which represents an increase as compared with a loss of $1.1 million for 2015. The Market Square Joint Venture was formed on October 28, 2015. Since inception, real estate operating income from Market Square has been reduced by interest incurred on the property's $325 million mortgage note, and Market Square experienced reduced occupancy levels throughout 2016 due to lease expirations.
We recognized gains on sales of real estate assets of $72.3 million in 2016, as a result of selling six properties in separate transactions for an aggregate of $660.5 million, exclusive of transaction costs. We recognized gains on sales of real estate assets of $23.9 million in 2015, as a result of selling 12 properties for an aggregate of $498.3 million, exclusive of transaction costs, and the sale


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of a 49% interest in Market Square for a gross sales price of $120.0 million. See Note 3, Real Estate Transactions, of the accompanying financial statements, for additional details of these dispositions.
Net income was $84.3 million, or $0.68 per basic and diluted share, for 2016, which represents an increase from $44.6 million, or $0.36 per basic and diluted share, for 2015. The increase is due to additional year-over-year gains on sales of real estate ($48.5 million) and a decrease in interest expense and other financing costs ($17.7 million), partially offset by additional year-over-year losses on early extinguishment of debt ($15.8 million), lower earnings due to property sales ($5.3 million), and increase in equity in loss of unconsolidated joint ventures ($6.4 million) due to reduced occupancy at Market Square. See "Supplemental Performance Measures" section below for our same-store results comparedfiled with the prior year period.SEC on February 13, 2019.

NOI by Geographic Segment
We consider geographic location when evaluating our portfolio composition and in assessing the ongoing operations and performance of our properties. As of December 31, 2017,2019, we aggregated our properties into the following geographic segments: New York, San Francisco, Atlanta, Washington, D.C., Boston, Los Angeles, and all other office markets. All other office markets consists of properties in low-barrier-to-entry geographic locations in which we do not have a substantial presence andand/or do not plan to make further investments. See Note 14,15, Segment Information, to the accompanying consolidated financial statements.
The following table presents NOI by geographic segment (in thousands):
For the Years Ended December 31,
20192018
New York$93,112  $94,765  
San Francisco83,305  79,354  
Washington, D.C.33,953  34,750  
Boston7,539  7,205  
Los Angeles4,601  4,590  
All other office markets35,428  51,638  
Total office segments257,938  272,302  
Hotel—  —  
Corporate(904) (803) 
Total$257,034  $271,499  
 For the Years Ended December 31,
 2017 2016 2015
New York$73,893
 $70,038
 $54,692
San Francisco76,163
 80,529
 83,826
Atlanta33,603
 32,939
 31,912
Washington, D.C.18,496
 16,372
 36,958
Boston5,380
 5,114
 12,519
Los Angeles4,529
 4,523
 4,853
All other office markets18,550
 92,756
 129,199
Total office segments230,614
 302,271
 353,959
Hotel(913) 3,988
 4,593
Corporate(826) (158) (586)
Total$228,875
 $306,101
 $357,966

Comparison of the Year Ended December 31, 20172019 Versus the Year Ended December 31, 20162018
San Francisco
NOI has decreased during 2017increased primarily due to the sale of a 22.5% interest in both University Circleleasing at 650 California Street and 333 Market221 Main Street. San Francisco From December 31, 2018 to December 31, 2019, 650 California Street's commenced occupancy increased from 93.9% to 97.1%, and 221 Main Street's commenced occupancy increased from 87.9% to 99.2%.
Boston
NOI is expected to decrease in the near termhas increased as a result of the sale of an additional 22.5% interest in each of these properties, as described in Note 3, Real Estate Transactions, of the accompanying consolidated financial statements.
Washington, D.C.
NOI hasleasing at 116 Huntington Avenue. From December 31, 2018 to December 31, 2019, 116 Huntington Avenue's commenced occupancy increased during 2017 duefrom 89.0% to the October 2017 acquisition of a 55% interest in 1800 M Street, as described in Note 3, Real Estate Transactions, of the accompanying consolidated financial statements, which is partially offset by decreased occupancy at 80 M Street and Market Square earlier in the current year. Over the near term, Washington, D.C. NOI is expected to increase as a result of recent leasing activity at 80 M Street and Market Square and recognizing a full period for our interest in 1800 M Street.96.5%.
All other office markets
NOI has decreased significantly year over year as a result of asset sales, as described in Note 3, Real Estate Transactions, of the accompanying consolidated financial statements.
Hotel
The Key Center Marriott, our only hotel, was sold on January 31, 2017.
Comparison of the Year Ended December 31, 2016 versus the Year Ended December 31, 2015


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New York
NOI increased year over year as a result of the acquisition of 229 West 43rd Street in August of 2015.
San Francisco
NOI decrease year over year as a result of decreased occupancy at 650 California Street.
Washington, D.C.Other Office Markets
NOI decreased year over yearprimarily as a result of selling a 49% interest in Market Square in October of 2015.our remaining Atlanta properties during 2019.
Boston
NOI decreased year over year as a result of selling 550 King Street and Robbins Road in the 11 Property Sale, as described in Note 3, Real Estate Transactions, of the accompanying consolidated financial statements.
All other office markets
NOI has decreased significantly year over year as a result of asset sales, as described in Note 3, Real Estate Transactions, of the accompanying consolidated financial statements.
Supplemental Performance Measures
In addition to net income, we measure theour performance of the company using certain non-GAAP supplemental performance measures,metrics, including: (i) Funds Fromfrom Operations ("FFO"), (ii) Net Operating Income ("NOI"), and (iii) Same Store Net Operating Income ("Same Store NOI"). These non-GAAP metricssupplemental performance measures are commonly used by REIT industry analysts and investors, as supplemental operation performance measures of REITs and are viewed by management to be useful indicators of operating performance. Historical cost accounting for real estate assets in accordance with GAAP implicitly assumesperformance principally because they exclude the effects of certain income and expenses that do not reflect the valuecash-generating capability of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, many industry analysts and investors have considered presentation of operating results for real estate companies using historical cost accounting alone to be insufficient.our operations. Management believes that the use of FFO, NOI, and Same Store NOI, combined with net income, improves the

39

understanding of operating results of REITs among the investing public, and makes comparisons of REIT operating results more meaningful.
Net income is the most comparable GAAP measure to FFO, NOI, and Same Store NOI. Each of these supplemental performance measures excludeexcludes expenses that materially impact our overall results of operations and, therefore, should not be considered as a substitute for net income, income from continuing operations before income taxes, or any other measures derived in accordance with GAAP. Furthermore, these metrics may not be comparable to other similarly titled measures used by other companies.
Funds Fromfrom Operations
FFO is a non-GAAP measure used by many investors and analysts who follow the real estate industry to measure the performance of an equity REIT. We consider FFO a useful measure of our performance because it principally adjusts for the effects of GAAP depreciation and amortization of real estate assets, which assumes that the value of real estate diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, we believe that FFO provides a meaningful supplemental measure of our performance. We believe that the use of FFO, combined with the required GAAP presentations, is beneficial in improving our investors' understanding of our operating results and allowing for comparisons among other companies who define FFO as we do.
FFO, as defined by the National Association of Real Estate Investment Trusts ("NAREIT"), represents net income (computed in accordance with GAAP), excluding gains or losses on sales of real estate and impairments of real estate assets, plus real estate-related depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures, for both continuing and discontinued operations. We compute 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 calculate FFO based on amounts attributable to our common stockholders, which includes earnings from investments owned directly; and our proportional share of earnings from investments owned through consolidated and unconsolidated subsidiaries.
FFO is a non-GAAP measure used by many investors and analysts who follow the real estate industry to measure the performance of an equity REIT. We consider FFO a useful measure of our performance, principally because it excludes the effects of depreciation and amortization of real estate assets. GAAP depreciation and amortization reflect a systematic reduction in the carrying value of real estate assets and, therefore, are not indicative of the actual increase or decrease in the realizable value of real estate assets. We believe that the use of FFO, combined with the required GAAP presentations, is beneficial in improving our investors' understanding of our operating results and allowing for comparisons among other companies who define FFO as we do.
FFO does not represent amounts available for management's discretionary use because of needed capital replacement or expansion, debt service obligations, or other commitments and uncertainties, nor is it indicative of funds available to fund our cash needs, including our ability to make distributions. Our presentation of FFO should not be considered as an alternative to net income (computed in accordance with GAAP) as an indicator of financial performance.



40
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Net income attributable to common stockholders of Columbia Property Trust reconciles to FFO as follows (in thousands):

Years Ended December 31,
201920182017
Reconciliation of Net Income to Funds from Operations:
Net income attributable to common stockholders$9,197  $9,491  $176,041  
Adjustments:
Depreciation of real estate assets78,292  81,795  80,394  
Amortization of lease-related costs27,908  32,554  32,403  
Depreciation and amortization attributable to our interest in unconsolidated joint ventures(1)
50,617  51,377  21,288  
Impairment loss on real estate assets43,941  30,812  —  
Gain on sale of unconsolidated joint venture interests—  (762) —  
Gains on sales of real estate assets(42,030) —  (175,518) 
Funds from Operations$167,925  $205,267  $134,608  
(1)Depreciation and amortization related to properties in unconsolidated joint ventures is recorded as equity in earnings from unconsolidated joint ventures.
The following significant non-cash revenues and expenses are included in our FFO:
Straight-line rental income, net:  To recognize rent on a straight-line basis over the lease term, we recognized net straight-line rental income for our wholly owned properties of $12.4 million, $25.9 million, and $31.9 million in 2019, 2018, and 2017, respectively. Income (loss) from unconsolidated joint ventures includes additional net straight-line rental income of $1.3 million, $(0.7) million, and $(0.7) million in 2019, 2018, and 2017, respectively. 
Amortization of intangible lease assets and liabilities:  To amortize above- and below-market, in-place lease intangible assets (liabilities), we recognized net increases to rental revenues (or decreases to operating expenses) for our wholly owned properties of $4.4 million, $3.2 million, and $0.5 million in 2019, 2018, and 2017, respectively. Income (loss) from unconsolidated joint ventures includes additional net operating income for amortization of intangible lease assets and liabilities of $9.8 million, $11.5 million, and $2.3 million in 2019, 2018, and 2017, respectively. 
Gain (loss) on extinguishment of debt:  We recognized gains or losses on the repayment of debt before maturity of $23.3 million and $(0.3) million in 2018 and 2017, respectively. 
Amortization of deferred financing costs and debt premiums (discounts):  To amortize costs associated with securing debt from third-party lenders over the terms of the respective debt facilities, we recognized net interest expense of $2.6 million, $3.1 million, and $3.0 million for 2019, 2018, and 2017, respectively. Income (loss) from unconsolidated joint ventures includes additional net interest expense of $(1.6) million in 2019 and 2018. 


 Years Ended December 31,
 2017 2016 2015
Reconciliation of Net Income to Funds From Operations:     
Net income$176,041
 $84,281
 $44,619
Adjustments:     
Depreciation of real estate assets80,394
 108,543
 131,490
Amortization of lease-related costs32,403
 56,775
 87,128
Depreciation and amortization included in loss from unconsolidated joint venture(1)
21,288
 8,776
 1,606
Gains on sales of real estate assets(175,518) (72,325) (23,860)
Total funds from operations adjustments(41,433) 101,769
 196,364
Funds from operations$134,608
 $186,050
 $240,983
41
(1)
Reflects our ownership interest in depreciation and amortization for investments in unconsolidated joint ventures.


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Net Operating Income
As set forth below, NOI is calculated by deducting property operating costs from rental and other property revenues for continuing operations. As a performance metric consisting of only revenues and expenses directly related to ongoing real estate rental operations, which have been or will be settled in cash, NOI is narrower in scope than FFO.
NOI, as we calculate it, may not be directly comparable to similarly titled, but differently calculated, measures for other REITs. We believe that NOI is another useful supplemental performance measure, as it is an input in many REIT valuation models, and it provides a means by which to evaluate the performance of the properties.
The major factors influencing our NOI are property acquisitions and dispositions, occupancy levels, rental rate increases or decreases, and the recoverability of operating expenses.
Same Store Net Operating Income
We also evaluate the performance of our properties, on a "same store" basis, using a metric referred to as Same Store NOI. We view Same Store NOI as a useful supplemental performance measure because it improves comparability between periods by eliminating the effects of changes in the composition of our portfolio. On an individual property basis, Same Store NOI is computed in a consistent manner as NOI (as described in the previous section). For the periods presented, we have defined our same store portfolio as those properties that have been continuously owned and operating since January 1, 2016.2018. NOI and Same Store NOI are calculated as follows for the years ended December 31, 20172019 and 20162018 (in thousands):
Years Ended December 31,
20192018
Same-Store NOI – wholly owned properties:
Revenues:
Lease revenues$249,423  $236,353  
Other property income4,933  5,097  
Total revenues254,356  241,450  
Operating expenses(87,808) (82,048) 
Same Store NOI – wholly owned properties(1)
166,548  159,402  
Same Store NOI – joint-venture owned properties(2)
69,957  69,350  
Total Same Store NOI236,505  228,752  
NOI from acquisitions(3)
529  (66) 
NOI from dispositions(4)
20,000  42,813  
NOI$257,034  $271,499  
 Years Ended December 31,
 2017 2016
Same-Store NOI - wholly-owned properties:   
Revenues:   
Rental income$217,615
 $213,161
Tenant reimbursements18,221
 22,868
Other property income3,242
 12,052
Total revenues239,078
 248,081
Operating expenses(79,508) (83,742)
Same Store NOI – wholly-owned properties(1)
159,570
 164,339
Same Store NOI – joint-venture owned properties(2)
51,665
 49,522
Total Same-Store NOI211,235
 213,861
NOI from acquisitions(3)
10,793
 
NOI from dispositions(4)
6,847
 92,240
NOI$228,875
 $306,101
(1)Reflects NOI from properties that were wholly owned for the entirety of the periods presented.
(1)
Reflects NOI from properties that were wholly owned for the entirety of the periods presented.
(2)
For all periods presented, reflects our ownership interest in NOI for properties owned through unconsolidated joint ventures as of December 31, 2017 (Market Square, University Circle, 333 Market Street, 114 Fifth Avenue, and 1800 M Street). The NOI for properties held through unconsolidated joint ventures is included in income (loss) from unconsolidated joint ventures in our accompanying consolidated statements of operations. See Note 4, Unconsolidated Joint Ventures, of the accompanying consolidated financial statements, for more information.
(3)
Reflects activity for the following properties acquired since January 1, 2016: 55% of 1800 M Street, 218 West 18th Street, and 245-249 West 17th Street, and 49.5% of 114 Fifth Avenue.
(4)
Reflects activity for the following properties sold since January 1, 2016: 22.5% of University Circle, and 22.5% of 333 Market Street, Key Center Tower, Key Center Marriott, 515 Post Oak, Energy Center, 5 Houston Center, SanTan Corporate Center, Sterling Commerce, 80 Park Plaza, 9127, 9189, 9191 & 9193 South Jamaica Street, 800 North Frederick, and 100 East Pratt.
(2)Reflects NOI earned from properties owned through unconsolidated joint ventures based on our ownership interest as of December 31, 2019, for the entirety of the periods presented. The slight declineNOI for properties held through unconsolidated joint ventures is included in income (loss) from unconsolidated joint ventures in our accompanying consolidated statements of operations. See Note 4, Unconsolidated Joint Ventures, of the accompanying consolidated financial statements, for more information.
(3)Reflects activity for the following properties acquired since January 1, 2018, for all periods presented: 201 California Street acquired on December 9, 2019, 92.5% of 101 Franklin Street acquired on December 2, 2019, and 49.7% of 799 Broadway acquired on October 3, 2018.
(4)Reflects activity for the following properties sold since January 1, 2018, for all periods presented: Lindbergh Center sold on September 26, 2019, One & Three Glenlake sold on April 15, 2019, 222 East 41st Street sold on May 29, 2018, and 22.5% of both University Circle and 333 Market Street sold on February 1, 2018.
Same Store NOI is dueincreased from $228.8 million for 2018 to $236.5 million for 2019, primarily as a temporary decline in occupancyresult of leasing at 650 California Street in San Francisco and at 315 Park Avenue South in New York. Anticipated lease expirations at 650 California Street and at 315 Park Avenue South allowed us to roll below-market leases up to market rates with recent leasing activities. As a result, future Same Store NOI is expected to increase at these properties and across the portfolio. The slight decline in Same Store NOI from prior year is also impacted by a lease expiration at 263 Shuman Boulevard, which is in the process of being returned to the lender in settlement of the mortgage note.




Page 3442


A reconciliation of Net Income to NOI and Same Store NOI is presented below (in thousands):
Years Ended December 31,
20192018
Net income attributable to stockholders of Columbia Property Trust$9,197  $9,491  
Depreciation78,292  81,795  
Amortization27,908  32,554  
Impairment of real estate assets43,941  30,812  
General and administrative – corporate32,779  32,979  
General and administrative – joint venture3,567  3,108  
Pre-acquisition costs6,398  —  
Net interest expense42,997  56,477  
Interest income from development authority bonds—  (6,871) 
(Gain) loss on extinguishment of debt—  (23,340) 
Income tax expense21  37  
Asset and property management fee income(7,544) (7,384) 
Adjustment included in income from unconsolidated joint ventures61,634  62,603  
Gain on sale of unconsolidated joint venture interest—  (762) 
Gains on sales of real estate assets(42,030) —  
Amounts attributable to noncontrolling interest(126) —  
Net operating income257,034  271,499  
Same Store NOI joint venture owned properties(1)
(69,957) (69,350) 
NOI from acquisitions(2)
(529) 66  
NOI from dispositions(3)
(20,000) (42,813) 
Same Store NOI – wholly owned properties(4)
$166,548  $159,402  
 Years Ended December 31,
 2017 2016
Net income$176,041
 $84,281
Depreciation80,394
 108,543
Amortization32,403
 56,775
General and administrative – corporate34,966
 33,876
General and administrative – joint venture1,454
 
Net interest expense58,187
 67,538
Interest income from development authority bonds(7,200) (7,200)
Loss on early extinguishment of debt325
 18,997
Income tax expense(213) 445
Asset and property management fee income(3,782) (2,122)
Adjustment included in loss from unconsolidated joint venture31,818
 17,293
Gains on sales of real estate assets(175,518) (72,325)
Net operating income$228,875
 $306,101
Same Store NOI  joint venture owned properties(1)
(51,665) (49,522)
NOI from acquisitions(2)
(10,793) 
NOI from dispositions(3)
(6,847) (92,240)
Same Store NOI - wholly owned properties(4)
$159,570
 $164,339
(1)
For all periods presented, reflects our ownership interest in NOI for properties owned through unconsolidated joint ventures as of December 31, 2017 (Market Square, University Circle, 333 Market Street, 114 Fifth Avenue, and 1800 M Street). The NOI for properties held through unconsolidated joint ventures is included in income (loss) from unconsolidated joint ventures in our accompanying consolidated statements of operations. See Note 4, Unconsolidated Joint Ventures, of the accompanying consolidated financial statements, for more information.
(2)
Reflects activity for the following properties acquired since January 1, 2016: 55% of 1800 M Street, 218 West 18th Street, and 245-249 West 17th Street, and 49.5% of 114 Fifth Avenue.
(3)
Reflects activity for the following properties sold since January 1, 2016: 22.5% of University Circle, and 22.5% of 333 Market Street, Key Center Tower, Key Center Marriott, 515 Post Oak, Energy Center, 5 Houston Center, SanTan Corporate Center, Sterling Commerce, 80 Park Plaza, 9127, 9189, 9191 & 9193 South Jamaica Street, 800 North Frederick, and 100 East Pratt.
(4)
Reflects NOI from properties that were wholly owned for the entirety of the periods presented.

(1)For all periods presented, reflects our ownership interest in NOI for properties owned through unconsolidated joint ventures as of December 31, 2019, for the entirety of the periods presented. The NOI for properties held through unconsolidated joint ventures is included in income from unconsolidated joint ventures in our accompanying consolidated statements of operations. See Note 4, Unconsolidated Joint Ventures, of the accompanying consolidated financial statements, for more information.

(2)Reflects activity for the following properties acquired since January 1, 2018, for all periods presented: 201 California Street acquired on December 9, 2019, 92.5% of 101 Franklin Street acquired on December 2, 2019, and 49.7% of 799 Broadway acquired on October 3, 2018.
(3)Reflects activity for the following properties sold since January 1, 2018, for all periods presented: Lindbergh Center sold on September 26, 2019, One & Three Glenlake sold on April 15, 2019, 222 East 41st Street sold on May 29, 2018, and 22.5% of both University Circle and 333 Market Street sold on February 1, 2018.
(4)Reflects NOI from properties that were wholly owned for the entirety of the periods presented.



Page 3543


Portfolio Information
As of December 31, 2017,2019, we owned 1917 operating properties and three properties under development or redevelopment, of which 1413 were wholly owned and fiveseven were owned through unconsolidated joint ventures. These properties are located primarily in New York, San Francisco, and Washington, D.C., and Atlanta, contain a total of 9.27.3 million rentable square feet, and were approximately 96.2%97.1% leased as of December 31, 2017.2019.
As of December 31, 2017,2019, our five highest geographic reportable segments, based on 2019 Annualized Lease Revenue, were as follows. For more information about our reportable segments, see Note 14, 15, Segment Information, to the accompanying consolidated financial statements.
LocationLeased
Square Feet
(in thousands)
2019 Annualized
Lease Revenue
(in thousands)
Percentage of
2019 Annualized
Lease Revenue
New York  2,031  $143,493  39 %
San Francisco  1,675  124,381  34 %
Washington, D.C.  860  60,498  16 %
Boston  272  16,308  %
Los Angeles  247  8,825  %
5,085  $353,505  95 %
Location Leased
Square Feet
(in thousands)
 2017 Annualized
Lease Revenue
(in thousands)
 Percentage of
2017 Annualized
Lease Revenue
New York $2,388
 147,318
 38%
San Francisco 1,663
 106,747
 28%
Washington, D.C. 846
 53,696
 14%
Atlanta 1,656
 40,509
 11%
Boston 225
 12,081
 3%
  $6,778
 360,351
 94%

As of December 31, 2017,2019, our five highest tenant industry concentrations, based on 2019 Annualized Lease Revenue, were as follows:
IndustryLeased
Square Feet
(in thousands)
2019 Annualized
Lease Revenue
(in thousands)
Percentage of
2019 Annualized
Lease Revenue
Business Services  1,212  $97,067  26 %
Depository Institutions  889  39,542  11 %
Engineering & Management Services  481  29,417  %
Nondepository Institutions  392  26,363  %
Legal Services  269  24,222  %
3,243  $216,611  59 %
Industry Leased
Square Feet
(in thousands)
 2017 Annualized
Lease Revenue
(in thousands)
 Percentage of
2017 Annualized
Lease Revenue
Business Services $1,281
 88,033
 23%
Depository Institutions 1,021
 42,242
 11%
Engineering & Management Services 495
 28,591
 8%
Communications 1,010
 26,135
 7%
Legal Services 303
 23,305
 6%
  $4,110
 208,306
 55%

As of December 31, 2017,2019, our five highest tenant concentrations, based on 2019 Annualized Lease Revenue, were as follows:
2019 Annualized
Lease Revenue
(in thousands)
Percentage of
2019 Annualized
Lease Revenue
Pershing  $18,712  %
Twitter  17,398  %
Wells Fargo  15,658  %
Yahoo!  15,142  %
Westinghouse Electric  14,995  %
$81,905  22 %
Tenant 2017 Annualized
Lease Revenue
(in thousands)
 Percentage of
2017 Annualized
Lease Revenue
AT&T $22,579
 6%
Wells Fargo 20,522
 5%
Pershing 18,251
 5%
Twitter 15,894
 4%
NYU 15,277
 4%
  $92,523
 24%
For more information on our portfolio, see Item 2, Properties.


44

Election as a REIT
We have elected to be taxed as a REIT under the Code, and have operated as such beginning with our taxable year ended December 31, 2003. To qualify as a REIT, we must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of our adjusted taxable income, as defined in the Code, to our stockholders, computed without regard to the dividends-paid deduction and by excluding our net capital gain. As a REIT, we generally will not be subject to federal income tax on income that we distribute to our stockholders. To the extent that we satisfy the distribution requirement but distribute less than 100% of our REIT taxable income, we would be subject to federal and state corporate income tax on the undistributed income. If we fail to qualify as a REIT in any taxable year, we will then be subject to federal income taxes on our taxable income for that year and for the four years following the year during which qualification is lost, unless the Internal Revenue Service grants us relief under certain statutory provisions. Such an event could materially affect our net income and net cash available for distribution to our stockholders. However, we believe that we are organized and operate in such a manner as to qualify for treatment as a REIT for federal income tax purposes.


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Columbia Property Trust TRS, LLC,LLC; Columbia KCP TRS, LLC,LLC; and Columbia Energy TRS, LLC (collectively, the "TRS Entities") are wholly owned subsidiaries of Columbia Property Trust and are organized as Delaware limited liability companies. The TRS Entities, among other things, provide tenant services that Columbia Property Trust,we, as a REIT, cannot otherwise provide. We have elected to treat the TRS Entities as taxable REIT subsidiaries. We may perform certain additional, noncustomary services for tenants of our buildings through the TRS Entities; however, any earnings related to such services are subject to federal and state income taxes. In addition, for us to continue to qualify as a REIT, we must limit our investments in taxable REIT subsidiaries to 25%20% of the value of our total assets. Deferred tax assets and liabilities are established for temporary differences between the financial reporting basis and the tax basis of assets and liabilities at the enacted rates expected to be in effect when the temporary differences reverse.
No provisions for federal income taxes have been made in our accompanying consolidated financial statements, other than the provisions relating to the TRS Entities, as we made distributions in excess of taxable income for the periods presented. We are subject to certain state and local taxes related to property operations in certain locations, which have been provided for in our accompanying consolidated financial statements.

Inflation
We are exposed to inflation risk, as income from long-term leases is the primary source of our cash flows from operations. There are provisions in the majority of our tenant leases that are intended to protect us from, and mitigate the risk of, the impact of inflation. These provisions include rent steps, reimbursement billings for operating expense pass-through charges, real estate tax and insurance reimbursements on a per-square-foot basis, or in some cases, annual reimbursement of operating expenses above a certain per-square-foot allowance. However, due to the long-term nature of the leases, the leases may not reset frequently enough to fully cover inflation.

Application of Critical Accounting Policies
Our accounting policies have been established to conform with GAAP. The preparation of financial statements in conformity with GAAP requires management to use judgment in the application of accounting policies, including making estimates and assumptions. These judgments affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. If our judgment or interpretation of the facts and circumstances relating to various transactions had been different, it is possible that different accounting policies would have been applied, thus resulting in a different presentation of the financial statements. Additionally, other companies may utilize different estimates that may impact the comparability of our results of operations to those of companies in similar businesses.

45

Investment in Real Estate Assets
We are required to make subjective assessments as to the useful lives of our depreciable assets. To determine the appropriate useful life of an asset, we consider the period of future benefit of the asset. These assessments have a direct impact on net income. The estimated useful lives of our assets by class are as follows:
Buildings40-4540 years
Building and site improvements5-25 years
Tenant improvementsShorter of economic life or lease term
Intangible lease assetsLease term

Evaluating the Recoverability of Real Estate Assets
We continually monitor events and changes in circumstances that could indicate that the carrying amounts of the real estate and related intangible assets of both operating properties and properties under construction may not be recoverable. When indicators of potential impairment are present that suggest that the carrying amounts of real estate assets and related intangible assets (liabilities) may not be recoverable, we assess the recoverability of these assets by determining whether the respective carrying values will be recovered through the estimated undiscounted future operating cash flows expected from the use of the assets and their eventual disposition. In the event that such expected undiscounted future cash flows do not exceed the carrying values, we adjust the carrying value of the real estate assets and related intangible assets to the estimated fair values, pursuant to the property, plant, and equipment accounting standard for the impairment or disposal of long-lived assets, and recognize an impairment loss. Estimated fair values are calculated based on the following hierarchy of information, depending upon availability: (Level 1) recently quoted market prices; (Level 2) market prices for comparable properties; or (Level 3) the present value of future cash flows, including estimated residual value. Certain of our assets may be carried at an amount that exceeds that which could be realized in a current disposition


Page 37


transaction. We have determined that there is no impairment in the carrying values of ourits real estate assets and related intangible assets for the year endedare recoverable as of December 31, 2017.2019.
Projections of expected future operating cash flows require that we estimate future market rental income amounts subsequent to the expiration of current lease agreements, property operating expenses, the number of months it takes to re-lease the property, and the number of years the property is held for investment, among other factors. Due to the inherent subjectivity of the assumptions used to project future cash flows, estimated fair values may differ from the values that would be realized in market transactions.
In the fourth quarter of 2019, we recorded an impairment loss of $20.6 million on Pasadena Corporate Park. Upon deciding to exit the Los Angeles market, we began to market for sale our only asset therein, Pasadena Corporate Park, in the fourth quarter of 2019. In January 2020, we entered into a contract to sell Pasadena Corporate Park, and anticipate closing on the sale in the first quarter of 2020. As a result, as of December 31,2019, we reduced the carrying value of Pasadena Corporate Park to reflect its estimated fair value of $74.5 million, determined based on estimated net sale proceeds (Level 1), by recording an impairment loss of $20.6 million.
In the third quarter of 2019, we recognized an impairment loss of $23.4 million as a result of changing the holding period expectations for Lindbergh Center in Atlanta, Georgia. We entered a contract to sell Lindbergh Center in the third quarter of 2019, and closed the sale on September 26, 2019. As a result, we reduced the carrying value of Lindbergh Center to reflect its estimated fair value, based on the estimated net sale proceeds of $181.0 million (Level 1), by recording an impairment loss of $23.4 million in the third quarter of 2019.
In the second quarter of 2018, we recognized an impairment loss of $30.8 million in connection with changing the holding period expectations for 222 East 41st Street in New York. We widely marketed this property for sale during the second quarter and, as a result, entered into an agreement to sell this property on May 25, 2018 and closed on the sale on May 29, 2018. Upon entering into the sale agreement, we reduced 222 East 41st Street's carrying value to reflect its fair value, estimated based on the net contract price of $284.6 million (Level 1), by recording an impairment loss of $30.8 million in the second quarter of 2018.

46

Allocation of Purchase Price of Acquired Assets
Upon the acquisition of real properties, we allocate the purchase price of properties to tangible assets, consisting of land and building, site improvements, and identified intangible assets and liabilities, including the value of in-place leases, based in each case on our estimate of their fair values.
The fair values of the tangible assets of an acquired property (which includes land and building) are determined by valuing the property as if it were vacant, and the "as-if-vacant" value is then allocated to land and building based on our determination of the relative fair value of these assets. We determine the as-if-vacant fair value of a property using methods similar to those used by independent appraisers. Factors we consider in performing these analyses include an estimate of carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases, including leasing commissions and other related costs. In estimating carrying costs, we include real estate taxes, insurance, and other operating expenses during the expected lease-up periods based on current market demand.
Intangible Assets and Liabilities Arising From In-Place Leases Where We Are the Lessor
As further described below, in-place leases where we are the lessor may have values related to direct costs associated with obtaining a new tenant that are avoided for in-place leases, opportunity costs associated with lost rentals that are avoided by acquiring an in-place lease, tenant relationships, and effective contractual rental rates that are above or below market rates:market:
Direct costs associated with obtaining a new tenant that are avoided for in-place leases, including commissions, tenant improvements,improvement allowances, and other direct costs, are estimated based on management's consideration of current market costs to execute a similar lease. Such direct costs are included in intangible lease origination costs in the accompanying consolidated balance sheets and are amortized to expense over the remaining terms of the respective leases.
The value of opportunity costs associated with lost rentals avoided by acquiring an in-place lease is calculated based on the contractual amounts to be paid pursuant to the in-place leases over a market absorption period for a similar lease. Such opportunity costs are included in intangible lease assets in the accompanying consolidated balance sheets and are amortized to expense over the remaining terms of the respective leases.
The value of effective rental rates of in-place leases that are above or below the market rates of comparable leases is calculated based on the present value (using a discount rate that reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be received pursuant to the in-place leases and (ii) management's estimate of fair market lease rates for the corresponding in-place leases. This calculation includes significantly below- marketbelow-market renewal options for which exercise of the renewal option appears to be reasonably assured. These intangible assets or liabilities are measured over the actual or assumed (in the case of renewal options) remaining lease terms. The capitalized above-market and below-market lease values are recorded as intangible lease assets or liabilities and amortized as an adjustment to rental income over the remaining terms of the respective leases.
Evaluating the Recoverability of Intangible Assets and Liabilities
The values of intangible lease assets and liabilities are determined based on assumptions made at the time of acquisition and have defined useful lives whichthat correspond with the lease terms. There may be instances in which intangible lease assets and liabilities become impaired, and we are required to write off the remaining asset or liability immediately or over a shorter period of time. Lease restructurings, including lease terminations and lease extensions, may impact the value and useful life of in-place leases. In-place leases that are terminated, partially terminated, or modified will be evaluated for impairment if the original in-place lease terms have been modified. In the event that the discounted cash flows of the original in-place lease stream do not exceed the discounted modified in-place lease stream, we adjust the carrying value of the intangible lease assets to the discounted cash flows and recognize an impairment loss. For in-place lease extensions that are executed more than one year prior to the original in-place lease expiration date, the useful life of the in-place lease will be extended over the new lease term with the exception of those in-place lease components, such as lease commissions and tenant

47

allowances, which have been renegotiated for the extended term. Renegotiated in-place lease components, such as lease commissions and tenant allowances, will be amortized over the shorter of the useful life of the asset or the new lease term.


Page 38


Intangible Assets and Liabilities Arising From In-Place Leases Where We Are the Lessee
In-place ground leases where we are the lessee may have positive or negative value associated with effective contractual rental rates that are above or below market rates.at the time of acquisition or assumption. Such values are calculated based on the present value (using a discount rate that reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place lease and (ii) management's estimate of fair market lease rates for the corresponding in-place lease at the time of execution or assumption. This calculation includes significantly below market renewal options for which exercise of the renewal option appears to be reasonably assured. These intangible assets and liabilities are measured over the actual or assumed (in the case of renewal options) remaining lease terms. The capitalized above-market and below-market in-place lease values are recorded as intangible lease liabilities and assets, respectively, and are amortized as an adjustment to property operating costcosts over the remaining term of the respective ground leases.
Revenue Recognition
The majority of our revenues are derived from leases and are reflected as lease revenues on the accompanying consolidated statements of operations. Lease revenues includes base rental income, tenant reimbursements, and lease termination fees. All of the leases on our assets are considered operating leases. Therefore, base rental income is generally recognized on a straight-line basis over the lease term, and tenant reimbursements are generally recognized in the period in which reimbursements for operating costs are billable to the tenant. Rents and tenant reimbursements collected in advance are recorded as deferred income on the accompanying consolidated balance sheets.
In determining when to begin recognizing rental revenues, we consider a number of factors, including the nature of the physical improvements made in connection with the lease. When we own the improvements for accounting purposes, revenue recognition generally begins once the improvements are substantially complete and the lessee has taken possession of the improved space. When we do not own the improvements for accounting purposes (the lessee is the owner), revenue recognition generally begins once the lessee takes possession of the unimproved space; in these instances, the tenant allowance is accounted for as a lease incentive, which reduces rental revenues over the lease term. When evaluating which party (lessee or lessor) owns the improvements for accounting purposes, we consider a number of factors, including, among other things: whether the lease stipulates what the tenant allowance may be used for; whether the lessee or lessor retains legal title to the improvements; the expected economic life of the improvements relative to the lease term; and who directs the construction of the improvements. The determination of who owns the improvements for accounting purposes is subject to significant judgement and is not based on any one factor.

Related-Party Transactions and Agreements
During 2017, 2016,2019, 2018, and 2015,2017, we did not have any related party transactions, except as described in Note 4, Unconsolidated Joint VentureVentures, of the accompanying consolidated financial statements.

Commitments and Contingencies
We are subject to certain commitments and contingencies with regard to certain transactions. Refer to Note 7, Commitments &and Contingencies, to the accompanying consolidated financial statements for further explanation. Examples of such commitments and contingencies include:
guaranty ofguaranties related to the debt of an unconsolidated joint venture of $11.2 million;ventures;
obligations under operating leases;
obligations under capital leases;
commitments under existing lease agreements; and
litigation.


48

Subsequent Events
We have evaluated subsequent events in connection with the preparation of our consolidated financial statements and notes thereto included in this report on Form 10-K and noted the following items in addition to those disclosed elsewhere in this report:
On January 24, 2020, Columbia Property Trust acquired Normandy Real Estate Management, LLC, a developer, operator, and investment manager of office and mixed-use assets in New York, Boston, and Washington, D.C. for approximately $100.0 million, exclusive of transaction and closing costs (the "Normandy Acquisition"). The purchase price for the Normandy Acquisition is comprised of two components: an approximately $13.5 million cash payment, and the issuance of 3,264,151 Series A Convertible, Perpetual Preferred Units of Columbia OP with a liquidation preference of $26.50 per unit (the "Preferred OP Units"). The Preferred OP Units are convertible into common units of Columbia OP, which are convertible into shares of Columbia Property Trust's common stock, subject to certain terms and conditions. After giving effect to the Preferred OP Units issued in the Normandy Acquisition, Columbia Property Trust owns approximately 97.2% of the limited partnership interests in Columbia OP.
We also note the following other subsequent events:
On February 7, 2018,2020, the board of directors declared dividends for the first quarter of 2018 in the amount2020 of $0.20$0.21 per share, payable on March 15, 2018,17, 2020, to stockholders of record on March 1, 2018.2, 2020.
On February 1, 2018,January 24, 2020, in connection with the Normandy Acquisition, we issued 128,399 of time-based award shares and 104,968 of performance-based award restricted stock units to Normandy employees that became employees of Columbia Property Trust sold an additional 22.5% interest in University Circle and 333 Market Street to its joint venture partner, Allianz, as described in Note 3, Real Estate Transactions, to the accompanying consolidated financial statements.
Trust.
On January 4, 2018,16, 2020, we closed on the sale of Cranberry Woods Drive for $180.0 million and anticipate recognizing a gain on sale of real estate assets in the first quarter of 2020.
On January 7, 2020, Columbia Property Trust paid an aggregate amount of $24.0$24.2 million in dividends for the fourth quarter of 20172019 to shareholdersstockholders of record on December 1, 2017.16, 2019.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
As a result of certain of our outstanding debt facilities, we are exposed to interest rate changes. Our interest rate risk management objectives are to limit the impact of interest rate changes on earnings and cash flow, primarily through a low to moderate level of overall borrowings. However,We manage our ratio of fixed- to floating-rate debt with the objective of achieving a mix that we currently have a substantial amountbelieve is appropriate in light of debt outstanding. The majority of our borrowings are in the form of effectively fixed-rate financings, which helps to insulate our portfolio from interest rate risk.anticipated changes. We closely monitor interest rates and will continue to consider the sources and terms of our borrowing facilities to determine whether we have appropriately guarded ourselves against the fluctuationrisk of increasing interest rates in future periods. Fluctuations in LIBOR may affect the amount of interest expense we incur on borrowings indexed to LIBOR, such as borrowings under the Revolving Credit Facility, which currently bears interest at the applicable LIBOR rate, as defined in the credit agreements, plus an applicable margin that is subject to adjustment based on our credit ratings.
Additionally, we have entered into interest rate swaps and may enter into other interest rate swaps, caps, or other arrangements to mitigate our interest rate risk on a related financial instrument. We do not enter into derivative or interest rate transactions for speculative purposes; however, certain of our derivatives may not qualify for hedge accounting treatment. All of our debt was entered into for other-than-trading purposes. As of December 31, 20172019 and 2016,2018, the estimated fair value of our consolidated line of credit and notes payable and bonds was $1.7$1.5 billion and $1.4$1.3 billion, respectively.



Page 3949


Our financial instruments, including bonds payable, consist of both fixed- and variable-rate debt. As of December 31, 2017, adjusting for 51% of the debt at the Market Square Joint Venture, which we own through an unconsolidated joint venture,2019, our debt consisted of the following, which includes our ownership share of debt at unconsolidated joint ventures, in thousands:
20202021202220232024ThereafterTotal
Maturing Debt:
Effectively variable-rate debt$—  $56,259  $—  $334,000  $—  $—  $390,259  
Effectively fixed-rate debt$—  $—  $150,000  $165,750  $300,000  $700,000  $1,315,750  
Average Interest Rate:
Effectively variable-rate debt— %5.96 %— %2.52 %— %— %3.02 %
Effectively fixed-rate debt— %— %3.07 %5.07 %2.55 %3.90 %3.64 %
  2018 2019 2020 2021 2022 Thereafter Total
Maturing Debt:              
Effectively variable-rate debt $300,000
 $152,000
 $300,000
 $
 $
 $
 $752,000
Effectively fixed-rate debt(1)
 $23,176
 $
 $
 $
 $150,000
 $864,265
 $1,037,441
               
Average Interest Rate:              
Effectively variable-rate debt 2.60% 2.57% 2.66% % % % 2.62%
Effectively fixed-rate debt(1)
 5.80% % % % 3.07% 4.12% 4.04%
(1)
Fixed-rate debt and the related average interest rates exclude the $49.0 million mortgage note for 263 Shuman Boulevard, which matured in July 2017. We are in the process of working to transfer this property to the lender in settlement of the mortgage note. Interest is being accrued at the default rate of 10.55%.
Our consolidated, variable-rate borrowings consist of the Revolving Credit Facility, the $300 Million Bridge Loan, the $300 Million Term Loan, and the $150 Million Term Loan. However, only the Revolving Credit Facility the $300 Million Bridge Loan, and the $300 Million Term Loan bearbears interest at effectively variable rates, as the variable raterates on the $300 Million Term Loan and the $150 Million Term Loan hashave been effectively fixed through the interest rate swap agreementagreements described herein.
As of December 31, 2017, we had $152.02019, our consolidated debt consisted of $334.0 million outstanding borrowings under the Revolving Credit Facility;Facility, $300.0 million outstanding on the $300 Million Term Loan, $150.0 million outstanding on the $150 Million Term Loan; $300.0 million outstanding on the $300 Million Bridge Loan; $300.0 million outstanding on the $300 Million Term Loan; $348.9Loan, $349.1 million in 2026 Bonds Payable outstanding; $349.6outstanding, and $349.7 million in 2025 Bonds Payable outstanding; and $72.2millionoutstanding. The amounts outstanding on fixed-rate, term mortgage loans.our Revolving Credit Facility in the future will largely depend upon future acquisition and disposition activities. The weighted-average interest rate ofon all of our consolidated debt instruments was 3.47%3.23% as of December 31, 2017.2019.
Approximately $920.7$1,148.9 million of our consolidated debt outstanding as of December 31, 2017,2019, is subject to fixed rates, either directly or when coupled with an interest rate swap agreement. As of December 31, 2017,2019, these balances incurred interest expense at an average interest rate of 4.17%3.44% and have expirations ranging from 20182022 through 2026. A change in the market interest rate impacts the net financial instrument position of our fixed-rate debt portfolio; however, it has no impact on interest incurred or cash flows. A 1 percent change
Approximately $334.0 million of our consolidated debt outstanding as of December 31, 2019, is subject to variable rates. As of December 31, 2019, this balance incurred interest expense at an interest rate of 2.52% and expires in interest rates2023. An increase or decrease of 100 basis points would have a $7.5$3.3 million annual impact on our interest payments. The amounts outstanding on our variable-rate debt facilities in the future will largely depend upon future acquisition and disposition activity and other financing activities.
Our unconsolidated borrowings consist of a fixed-rate mortgage note and a variable-rate construction note. Our Market Square Joint Venture holds a $325 million mortgage note, which bears interest at a fixed rate of 5.07%.; and our 799 Broadway Joint Venture holds a $113.2 million construction note, which bears interest at a floating rate of 5.96% as of December 31, 2019. Adjusting for 51%our ownership share of the debt at the Market Square Joint Venture, which we own through anthese unconsolidated joint venture,ventures, our weighted-average interest rate of all of our debt instruments including our share of the Market Square mortgage note is 3.62%3.50%.
We do not believe there is any exposure to increases in interest rates related to the capital lease obligations of $120.0 million at December 31, 2017, as the obligations are at fixed interest rates.
ITEM 8.FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
ITEM 8.FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The financial statements and supplementary data filed as part of this report are set forth beginning on page F-1 of this report.

ITEM 9.CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
ITEM 9.CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
There were no disagreements with our independent registered public accountants during 2017, 2016,2019, 2018, or 2015.2017.


50

ITEM 9A.CONTROLS AND PROCEDURES
ITEM 9A.CONTROLS AND PROCEDURES
Columbia Property Trust, Inc.
Management's Conclusions Regarding the Effectiveness of Disclosure Controls and Procedures

We carried out an evaluation, under the supervision and with the participation of management, including the Principal Executive Officer and Principal Financial Officer, of the effectiveness of the design and operation of ourColumbia Property Trust's disclosure controls and procedures pursuant to Rule 13a-15(e) under the Exchange Act as of the end of the period covered by this report. Based upon that evaluation,


Page 40


the Principal Executive Officer and Principal Financial Officer concluded that ourColumbia Property Trust's disclosure controls and procedures were effective as of the end of the period covered by this report in providing a reasonable level of assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods in SEC rules and forms, including providing a reasonable level of assurance that information required to be disclosed by us in such reports is accumulated and communicated to our management, including our Principal Executive Officer and our Principal Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Report of Management on Internal Control Over Financial Reporting
Our management
Management of Columbia Property Trust is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act, as a process designed by, or under the supervision of, the Principal Executive Officer and Principal Financial Officer and effected by our management and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP and includes those policies and procedures that:
pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and disposition of our assets;
provide reasonable assurance that the transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that our receipts and expenditures are being made only in accordance with authorizations of management and/or members of the board of directors; and
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on the financial statements.

Because of the inherent limitations of internal control over financial reporting, including the possibility of human error and the circumvention or overriding of controls, material misstatements may not be prevented or detected on a timely basis. In addition, projections of any evaluation of effectiveness to future periods are subject to the risks that controls may become inadequate because of changes and conditions or that the degree of compliance with policies or procedures may deteriorate. Accordingly, even internal controls determined to be effective can provide only reasonable assurance that the information required to be disclosed in reports filed under the Exchange Act is recorded, processed, summarized, and represented within the time periods required.
Our management
Management of Columbia Property Trust has assessed the effectiveness of ourColumbia Property Trust's internal control over financial reporting at December 31, 2017.2019. To make this assessment, we used the criteria for effective internal control over financial reporting described in the Internal Control Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, our management believes that ourColumbia Property Trust's system of internal control over financial reporting met those criteria, and therefore our management has concluded that we maintained effective internal control over financial reporting as of December 31, 2017.2019.

The report of the Company'sColumbia Property Trust's independent registered public accounting firm on internal control over financial reporting for the CompanyColumbia Property Trust is included in Part IV, Item 15, of this annual report on Form 10-K and is incorporated herein by reference.


51

Changes in Internal Control Over Financial Reporting

There have been no changes in ourColumbia Property Trust’s internal control over financial reporting during the quarter ended December 31, 2017,2019, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.


Columbia Property Trust Operating Partnership, L.P.

Management's Conclusions Regarding the Effectiveness of Disclosure Controls and Procedures

Columbia Property Trust, the general partner and sole owner of Columbia OP, carried out an evaluation, under the supervision and with the participation of management, including the Principal Executive Officer and Principal Financial Officer, of the effectiveness of the design and operation of Columbia OP's disclosure controls and procedures pursuant to Rule 13a-15(e) under the Exchange Act as of the end of the period covered by this report. Based upon that evaluation, the Principal Executive Officer and Principal Financial Officer concluded that Columbia OP's disclosure controls and procedures were effective as of the end of the period covered by this report in providing a reasonable level of assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods in SEC rules and forms, including providing a reasonable level of assurance that information required to be disclosed by us in such reports is accumulated and communicated to our management, including our Principal Executive Officer and our Principal Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Report of Management on Internal Control Over Financial Reporting

Management of Columbia Property Trust, as the general partner and sole owner of Columbia OP, is responsible for establishing and maintaining adequate internal control over financial reporting for Columbia OP, as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. The Principal Executive Officer and Principal Financial Officer of Columbia Property Trust, along with management and other personnel, have designed and supervised the financial reporting process to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP and includes those policies and procedures that:
pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and disposition of our assets;
provide reasonable assurance that the transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that our receipts and expenditures are being made only in accordance with authorizations of management and/or members of the board of directors; and
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on the financial statements.
Because of the inherent limitations of internal control over financial reporting, including the possibility of human error and the circumvention or overriding of controls, material misstatements may not be prevented or detected on a timely basis. In addition, projections of any evaluation of effectiveness to future periods are subject to the risks that controls may become inadequate because of changes and conditions or that the degree of compliance with policies or procedures may deteriorate. Accordingly, even internal controls determined to be effective can provide only reasonable assurance that the information required to be disclosed in reports filed under the Exchange Act is recorded, processed, summarized, and represented within the time periods required.
Management has assessed the effectiveness of Columbia OP's internal control over financial reporting at December 31, 2019. To make this assessment, we used the criteria for effective internal control over financial reporting described in the Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, our management believes that Columbia OP's


Page 4152


system of internal control over financial reporting met those criteria, and therefore our management has concluded that we maintained effective internal control over financial reporting as of December 31, 2019.
The report of Columbia OP's independent registered public accounting firm on internal control over financial reporting for Columbia OP is included in Part IV, Item 15, of this annual report on Form 10-K and is incorporated herein by reference.
Changes in Internal Control Over Financial Reporting
There have been no changes in Columbia OP's internal control over financial reporting during the quarter ended December 31, 2019, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.


53

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholdersstockholders and the Board of Directors of Columbia Property Trust, Inc.:
Opinion on Internal Control over Financial Reporting
We have audited the internal control over financial reporting of Columbia Property Trust, Inc. and subsidiaries (the “Company”"Company") as of December 31, 2017,2019, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2017,2019, based on criteria established in Internal Control - Integrated Framework (2013) issued by COSO.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements and financial statement schedule as of and for the year ended December 31, 2017,2019, of the Company and our report dated February 15, 2018,13, 2020, expressed an unqualified opinion on those consolidated financial statements and financial statement schedule.statements.
Basis for Opinion
The Company’sCompany's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Report of Management on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control over Financial Reporting
A company’scompany's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’scompany's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/ Deloitte & Touche LLP


Atlanta, Georgia
February 15, 201813, 2020




Page 4254


ITEM 9B.OTHER INFORMATION
ITEM 9B. OTHER INFORMATION
During the fourth quarter of 2017,2019, there was no information that was required to be disclosed in a report on Form 8-K that was not disclosed in a report on Form 8-K.





Page 4355


PART III
We will file a definitive Proxy Statement for our 20182020 Annual Meeting of Stockholders (the "2018"2020 Proxy Statement") with the SEC, pursuant to Regulation 14A, not later than 120 days after the end of our fiscal year. Accordingly, certain information required by Part III has been omitted under General Instruction G(3) to Form 10-K. Only those sections of the 20182020 Proxy Statement that specifically address the items required to be set forth herein are incorporated by reference.

ITEM 10.DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE
ITEM 10.DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE
We have adopted a Code of Ethics that applies to all of our executive officers and directors, including but not limited to, our principal executive officer and principal financial officer. Our Code of Ethics may be found at http://www.columbia.reit. Any amendments to, or waivers of, the Code of Ethics for our principal executive officer, principal financial officer, principal accounting officer, or controller, or persons performing similar functions will be disclosed on our website promptly following the date of such amendment or waiver.
The other information required by this Item is incorporated by reference from our 20182020 Proxy Statement.

ITEM 11.EXECUTIVE COMPENSATION
ITEM 11.EXECUTIVE COMPENSATION
The information required by this Item is incorporated by reference from our 20182020 Proxy Statement.

ITEM 12.SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED SHAREHOLDER MATTERS
ITEM 12.SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED SHAREHOLDER MATTERS
See the table below for securities authorized to be issued under our equity compensation plan as of December 31, 2017.2019. The other information required by this Item is incorporated by reference from our 20182020 Proxy Statement.
Plan CategoryNumber of Securities
to Be Issued Upon 
Exercise of
Outstanding Options,
Warrants, and Rights
Weighted-Average Exercise Price of Outstanding Options, Warrants, and RightsCommon Stock Issued Under the LTI PlanNumber of Securities Remaining Available 
for Future Issuance Under Equity Compensation Plans
Equity compensation plans
approved by security holders
—  $—  2,130,296  2,669,704  
Equity compensation plans not
approved by security holders
—  —  —  —  
Total—  $—  2,130,296  2,669,704  

ITEM 13.CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
Plan Category 
Number of Securities
to Be Issued Upon 
Exercise of
Outstanding Options,
Warrants, and Rights
 Weighted-Average Exercise Price of Outstanding Options, Warrants, and Rights Common Stock Issued Under the LTIP 
Number of Securities Remaining Available 
for Future Issuance Under Equity Compensation Plans
Equity compensation plans
approved by security holders
 
 $
 1,293,931
 3,506,069
Equity compensation plans not
approved by security holders
 
 
 
 
Total 
 $
 1,293,931
 3,506,069
ITEM 13.CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
The information required by this Item is incorporated by reference from our 20182020 Proxy Statement.

ITEM 14.PRINCIPAL ACCOUNTANT FEES AND SERVICES
ITEM 14.PRINCIPAL ACCOUNTANT FEES AND SERVICES
The information required by this Item is incorporated by reference from our 20182020 Proxy Statement.




Page 4456


PART IV

ITEM 15.EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
(a) 1. A list of the financial statements contained herein is set forth on page F-1 hereof.
(a) 2. Schedule III - Real Estate Assets and Accumulated Depreciation
Information with respect to this item begins on page S-1 hereof. Other schedules are omitted because of the absence of conditions under which they are required or because the required information is given in the financial statements or notes thereto.
(a) 3.The Exhibits filed in response to Item 601 of Regulation S-K are listed on the Exhibit Index attached hereto.
(a) 3. The Exhibits filed in response to Item 601 of Regulation S-K are listed on the Exhibit Index attached hereto.
(b) See (a) 3 above.
(c) See (a) 2 above.
EXHIBIT INDEX TO
20172019 FORM 10-K OF
COLUMBIA PROPERTY TRUST, INC.

COLUMBIA PROPERTY TRUST OPERATING PARTNERSHIP, L.P.

The following documents are filed as exhibits to this report. Exhibits that are not required for this report are omitted.

Ex.Description
3.1
3.2
3.3
3.4
3.5
3.6
3.7
4.13.8
4.1
4.2
4.3
4.4
4.5
4.6
10.14.7* 

57



Page 45


Ex.Description
10.6*+10.5+
10.7*+10.6+ 
10.8
10.910.7 
10.1010.8
10.1110.9
10.1210.10
10.1310.11
10.14
10.15
10.1610.12
10.1710.13 
10.18*
12.1*10.14
21.1*10.15
21.1*
23.1*
Consent of Deloitte & Touche LLP.LLP – Columbia Property Trust, Inc. and Columbia Property Trust Operating Partnership, L.P.
31.1*
31.2*

58



Page 46


Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101
Ex.*DescriptionFiled herewith.
*+Filed herewith.
+Identifies each management contract or compensatory plan required to be filed.




Page 4759


SIGNATURESREPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
PursuantTo the stockholders and the Board of Directors of Columbia Property Trust, Inc.:
Opinion on Internal Control over Financial Reporting
We have audited the internal control over financial reporting of Columbia Property Trust, Inc. and subsidiaries (the "Company") as of December 31, 2019, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2019, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements and financial statement schedule as of and for the year ended December 31, 2019, of the Company and our report dated February 13, 2020, expressed an unqualified opinion on those financial statements.
Basis for Opinion
The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Report of Management on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the requirementsCompany in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange ActCommission and the PCAOB.
We conducted our audit in accordance with the standards of 1934, the RegistrantPCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control over Financial Reporting
A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/ Deloitte & Touche LLP

Atlanta, Georgia
February 13, 2020


54

ITEM 9B. OTHER INFORMATION
During the fourth quarter of 2019, there was no information that was required to be disclosed in a report on Form 8-K that was not disclosed in a report on Form 8-K.


55

PART III
We will file a definitive Proxy Statement for our 2020 Annual Meeting of Stockholders (the "2020 Proxy Statement") with the SEC, pursuant to Regulation 14A, not later than 120 days after the end of our fiscal year. Accordingly, certain information required by Part III has duly causedbeen omitted under General Instruction G(3) to Form 10-K. Only those sections of the 2020 Proxy Statement that specifically address the items required to be set forth herein are incorporated by reference.

ITEM 10.DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE
We have adopted a Code of Ethics that applies to all of our executive officers and directors, including but not limited to, our principal executive officer and principal financial officer. Our Code of Ethics may be found at www.columbia.reit. Any amendments to, or waivers of, the Code of Ethics for our principal executive officer, principal financial officer, principal accounting officer, controller, or persons performing similar functions will be disclosed on our website promptly following the date of such amendment or waiver.
The other information required by this Item is incorporated by reference from our 2020 Proxy Statement.

ITEM 11.EXECUTIVE COMPENSATION
The information required by this Item is incorporated by reference from our 2020 Proxy Statement.

ITEM 12.SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED SHAREHOLDER MATTERS
See the table below for securities authorized to be issued under our equity compensation plan as of December 31, 2019. The other information required by this Item is incorporated by reference from our 2020 Proxy Statement.
Plan CategoryNumber of Securities
to Be Issued Upon 
Exercise of
Outstanding Options,
Warrants, and Rights
Weighted-Average Exercise Price of Outstanding Options, Warrants, and RightsCommon Stock Issued Under the LTI PlanNumber of Securities Remaining Available 
for Future Issuance Under Equity Compensation Plans
Equity compensation plans
approved by security holders
—  $—  2,130,296  2,669,704  
Equity compensation plans not
approved by security holders
—  —  —  —  
Total—  $—  2,130,296  2,669,704  

ITEM 13.CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
The information required by this Item is incorporated by reference from our 2020 Proxy Statement.

ITEM 14.PRINCIPAL ACCOUNTANT FEES AND SERVICES
The information required by this Item is incorporated by reference from our 2020 Proxy Statement.


56

PART IV

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
(a) 1. A list of the financial statements contained herein is set forth on page F-1 hereof.
(a) 2. Schedule III – Real Estate Assets and Accumulated Depreciation
Information with respect to this item begins on page S-1 hereof. Other schedules are omitted because of the absence of conditions under which they are required or because the required information is given in the financial statements or notes thereto.
(a) 3. The Exhibits filed in response to Item 601 of Regulation S-K are listed on the Exhibit Index attached hereto.
(b) See (a) 3 above.
(c) See (a) 2 above.
EXHIBIT INDEX TO
2019 FORM 10-K OF
COLUMBIA PROPERTY TRUST, INC.
COLUMBIA PROPERTY TRUST OPERATING PARTNERSHIP, L.P.

The following documents are filed as exhibits to this report. Exhibits that are not required for this report to be signed on its behalf by the undersigned thereunto duly authorized.are omitted.

COLUMBIA PROPERTY TRUST, INC.
(Registrant)
Dated:February 15, 2018By:/s/ James A. Fleming
JAMES A. FLEMING
Executive Vice President and Chief Financial Officer (Principal Financial Officer)
Dated:February 15, 2018/s/ Wendy W. Gill
WENDY W. GILL
Principal Accounting Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacity as and on the date indicated.
SignatureEx.TitleDateDescription
3.1
/s/ Carmen M. Bowser3.2Independent Director
Carmen M. Bowser3.3February
3.4 
/s/ Charles R. Brown3.5 Independent Director
Charles R. Brown3.6 February 15, 2018
3.7 
/s/ Richard W. Carpenter3.8Independent Director
Richard W. Carpenter4.1February 15, 2018
4.2 
/s/ John L. Dixon4.3 Independent Director
John L. Dixon4.4 February 15, 2018
4.5 
/s/ David B. Henry4.6 Independent Director
David B. Henry4.7* February 15, 2018
/s/ Murray J. McCabeIndependent Director
Murray J. McCabeFebruary 15, 2018
/s/ E. Nelson Mills
President, Chief Executive Officer and DirectorDescription of Registrant's securities.
(Principal Executive Officer)
E. Nelson MillsFebruary 15, 2018
/s/ Constance B. MooreIndependent Director
Constance B. MooreFebruary 15, 2018
/s/ Michael S. RobbIndependent Director
Michael S. RobbFebruary 15, 2018
/s/ George W. SandsIndependent Director
George W. SandsFebruary 15, 2018
/s/ Thomas G. WattlesIndependent Director
Thomas G. WattlesFebruary 15, 2018



57
Page 48


INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
Ex.Description
10.1 
10.2 
10.3+
10.4+
10.5+
10.6+ 
10.7 
10.8
10.9
10.10
10.11
10.12
10.13 
10.14
10.15
21.1*
23.1*
F-6Consent of Deloitte & Touche LLP – Columbia Property Trust, Inc. and Columbia Property Trust Operating Partnership, L.P.
31.1*
31.2*



58
F-1




59

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the stockholders and the Board of Directors of Columbia Property Trust, Inc.:
Opinion on Internal Control over Financial Reporting
We have audited the internal control over financial reporting of Columbia Property Trust, Inc. and subsidiaries (the "Company") as of December 31, 2019, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2019, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements and financial statement schedule as of and for the year ended December 31, 2019, of the Company and our report dated February 13, 2020, expressed an unqualified opinion on those financial statements.
Basis for Opinion
The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Report of Management on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control over Financial Reporting
A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/ Deloitte & Touche LLP

Atlanta, Georgia
February 13, 2020


54

ITEM 9B. OTHER INFORMATION
During the fourth quarter of 2019, there was no information that was required to be disclosed in a report on Form 8-K that was not disclosed in a report on Form 8-K.


55

PART III
We will file a definitive Proxy Statement for our 2020 Annual Meeting of Stockholders (the "2020 Proxy Statement") with the SEC, pursuant to Regulation 14A, not later than 120 days after the end of our fiscal year. Accordingly, certain information required by Part III has been omitted under General Instruction G(3) to Form 10-K. Only those sections of the 2020 Proxy Statement that specifically address the items required to be set forth herein are incorporated by reference.

ITEM 10.DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE
We have adopted a Code of Ethics that applies to all of our executive officers and directors, including but not limited to, our principal executive officer and principal financial officer. Our Code of Ethics may be found at www.columbia.reit. Any amendments to, or waivers of, the Code of Ethics for our principal executive officer, principal financial officer, principal accounting officer, controller, or persons performing similar functions will be disclosed on our website promptly following the date of such amendment or waiver.
The other information required by this Item is incorporated by reference from our 2020 Proxy Statement.

ITEM 11.EXECUTIVE COMPENSATION
The information required by this Item is incorporated by reference from our 2020 Proxy Statement.

ITEM 12.SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED SHAREHOLDER MATTERS
See the table below for securities authorized to be issued under our equity compensation plan as of December 31, 2019. The other information required by this Item is incorporated by reference from our 2020 Proxy Statement.
Plan CategoryNumber of Securities
to Be Issued Upon 
Exercise of
Outstanding Options,
Warrants, and Rights
Weighted-Average Exercise Price of Outstanding Options, Warrants, and RightsCommon Stock Issued Under the LTI PlanNumber of Securities Remaining Available 
for Future Issuance Under Equity Compensation Plans
Equity compensation plans
approved by security holders
—  $—  2,130,296  2,669,704  
Equity compensation plans not
approved by security holders
—  —  —  —  
Total—  $—  2,130,296  2,669,704  

ITEM 13.CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
The information required by this Item is incorporated by reference from our 2020 Proxy Statement.

ITEM 14.PRINCIPAL ACCOUNTANT FEES AND SERVICES
The information required by this Item is incorporated by reference from our 2020 Proxy Statement.


56

PART IV

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
(a) 1. A list of the financial statements contained herein is set forth on page F-1 hereof.
(a) 2. Schedule III – Real Estate Assets and Accumulated Depreciation
Information with respect to this item begins on page S-1 hereof. Other schedules are omitted because of the absence of conditions under which they are required or because the required information is given in the financial statements or notes thereto.
(a) 3. The Exhibits filed in response to Item 601 of Regulation S-K are listed on the Exhibit Index attached hereto.
(b) See (a) 3 above.
(c) See (a) 2 above.
EXHIBIT INDEX TO
2019 FORM 10-K OF
COLUMBIA PROPERTY TRUST, INC.
COLUMBIA PROPERTY TRUST OPERATING PARTNERSHIP, L.P.

The following documents are filed as exhibits to this report. Exhibits that are not required for this report are omitted.

Ex.Description
3.1
3.2
3.3
3.4 
3.5 
3.6 
3.7 
3.8
4.1
4.2 
4.3 
4.4 
4.5 
4.6 
4.7* 

57

Ex.Description
10.1 
10.2 
10.3+
10.4+
10.5+
10.6+ 
10.7 
10.8
10.9
10.10
10.11
10.12
10.13 
10.14
10.15
21.1*
23.1*
Consent of Deloitte & Touche LLP – Columbia Property Trust, Inc. and Columbia Property Trust Operating Partnership, L.P.
31.1*
31.2*

58



59

SIGNATURES
Pursuant to the requirements of Section 13 or 15 (b) of the Securities Exchange Act of 1934, as amended, each Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
COLUMBIA PROPERTY TRUST, INC.
(Registrant)
Dated:February 13, 2020By:/s/ James A. Fleming
JAMES A. FLEMING
Executive Vice President and Chief Financial Officer (Principal Financial Officer)
Dated:February 13, 2020/s/ Wendy W. Gill
WENDY W. GILL
Senior Vice President and Chief Accounting Officer (Principal Accounting Officer)

COLUMBIA PROPERTY TRUST OPERATING PARTNERSHIP, L.P.
(Registrant)
By: Columbia Property Trust, its sole general partner
Dated:February 13, 2020By:/s/ James A. Fleming
JAMES A. FLEMING
Executive Vice President and Chief Financial Officer (Principal Financial Officer)
Dated:February 13, 2020/s/ Wendy W. Gill
WENDY W. GILL
Senior Vice President and Chief Accounting Officer (Principal Accounting Officer)


60

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this report has been signed below by the following persons on behalf of each registrant and in the capacities and on the dates indicated.

SignatureCapacity*Date
/s/ Carmen M. BowserIndependent DirectorFebruary 13, 2020
Carmen M. Bowser
/s/ John L. DixonIndependent DirectorFebruary 13, 2020
John L. Dixon
/s/ David B. HenryIndependent DirectorFebruary 13, 2020
David B. Henry
/s/ Murray J. McCabeIndependent DirectorFebruary 13, 2020
Murray J. McCabe
/s/ E. Nelson MillsPresident, Chief Executive Officer and Director
(Principal Executive Officer)
February 13, 2020
E. Nelson Mills
/s/ Constance B. MooreIndependent DirectorFebruary 13, 2020
Constance B. Moore
/s/ Michael S. RobbIndependent DirectorFebruary 13, 2020
Michael S. Robb
/s/ George W. SandsIndependent DirectorFebruary 13, 2020
George W. Sands
/s/ Thomas G. WattlesIndependent DirectorFebruary 13, 2020
Thomas G. Wattles
*Each person is signing in his or her capacity as an officer and/or director of Columbia Property Trust, Inc., which is the sole general partner of Columbia Property Trust Operating Partnership, L.P.

61

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

F-1

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholders and the Board of Directors of Columbia Property Trust, Inc.:

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Columbia Property Trust, Inc. and subsidiaries (the "Company") as of December 31, 20172019 and 2016,2018, the related consolidated statements of operations, comprehensive income, equity, and cash flows, for each of the three years in the period ended December 31, 2017,2019, and the related notes and the schedule listed in the Index at Item 15(a)(2) (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 20172019 and 2016,2018, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2017,2019, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2017,2019, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 15, 2018,13, 2020, expressed an unqualified opinion on the Company's internal control over financial reporting.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the Audit Committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Lease Revenues – Refer to Note 2 (Revenue Recognition) to the financial statements

Critical Audit Matter Description

Lease revenues includes base rental income, tenant reimbursements, and lease termination fees. Base rental income is generally recognized on a straight-line basis over the lease term. The timing of revenue recognition is impacted by whether the Company or the lessee owns the physical improvements made in connection with each lease. In
F-2

determining whether the Company or the lessee is the owner of such improvements, the Company considers several factors based on each lease arrangement, including whether the lease stipulates what the tenant allowance may be used for; whether the lessee or lessor retains legal title to the improvements; the expected economic life of the improvements relative to the lease term; and which party directs the construction of the improvements.

The determination of whether the Company or the lessee owns the improvements for accounting purposes is subject to significant judgment and is not based on any one factor. Auditing management’s determination of these matters often is complex and requires subjective judgment.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to management’s determination of the owner of the tenant improvements, and the related impact on the timing and amount of revenue recognition, included the following, among others:
We tested the effectiveness of controls over revenue recognition, including those controls over the evaluation of the ownership of tenant improvements, and the timing and amounts of rental revenues to be recognized over the term of the related lease.
We selected a sample of lease agreements and performed the following to evaluate the appropriateness of the determination of the ownership of the tenant improvements and the related impact on the timing and amount of revenue recognition:
Evaluated the reasonableness and consistency of the factors considered by management to determine the owner of the tenant improvements and compared such factors to the terms in the lease agreement or other supporting documents.
Tested tenant improvement costs, including the amounts funded by the Company or the tenant, by reconciling the amounts recorded by the Company to invoices or other supporting documents and evaluated whether the costs were consistent with the terms of the lease agreement and the Company’s ownership determination.
Tested the timing of and amounts recognized as base rental income by independently calculating such rental income amounts to be recognized and comparing it to the amounts recorded by the Company.

/s/ Deloitte & Touche LLP


Atlanta, Georgia
February 15, 201813, 2020


We have served as the Company's auditor since 2008.




F-3
F-2


COLUMBIA PROPERTY TRUST, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per-share amounts)
December 31,December 31,
2017 201620192018
Assets:   Assets:
Real Estate Assets, at Cost:   Real Estate Assets, at Cost:
Land$825,208
 $751,351
Land$870,352  $817,975  
Buildings and improvements, less accumulated depreciation of $388,796 and $435,457, as of December 31, 2017 and 2016, respectively2,063,419
 2,121,150
Intangible lease assets, less accumulated amortization of $94,065 and $112,777, as of December 31, 2017 and 2016, respectively199,260
 193,311
Buildings and improvements, less accumulated depreciation of $281,248 and $403,355, as of December 31, 2019 and 2018, respectivelyBuildings and improvements, less accumulated depreciation of $281,248 and $403,355, as of December 31, 2019 and 2018, respectively1,719,207  1,910,041  
Intangible lease assets, less accumulated amortization of $58,659 and $84,881, as of December 31, 2019 and 2018, respectivelyIntangible lease assets, less accumulated amortization of $58,659 and $84,881, as of December 31, 2019 and 2018, respectively61,025  98,540  
Construction in progress44,742
 36,188
Construction in progress53,621  33,800  
Real estate assets held for sale, less accumulated depreciation and amortization of $180,791 as of December 31, 2016
 412,506
Real estate assets held for sale, less accumulated depreciation and amortization of $80,543 as of December 31, 2019Real estate assets held for sale, less accumulated depreciation and amortization of $80,543 as of December 31, 2019214,956  —  
Total real estate assets3,132,629
 3,514,506
Total real estate assets2,919,161  2,860,356  
Investment in unconsolidated joint ventures943,242
 127,346
Operating lease assetsOperating lease assets29,470  —  
Investments in unconsolidated joint venturesInvestments in unconsolidated joint ventures1,054,460  1,071,353  
Cash and cash equivalents9,567
 216,085
Cash and cash equivalents12,303  17,118  
Tenant receivables, net of allowance for doubtful accounts of $0 and $31 as of December 31, 2017 and 2016, respectively2,128
 7,163
Tenant receivables, net of allowance for doubtful accounts of $4 as of December 31, 2018Tenant receivables, net of allowance for doubtful accounts of $4 as of December 31, 20182,464  3,258  
Straight-line rent receivable92,235
 64,811
Straight-line rent receivable77,330  87,159  
Prepaid expenses and other assets27,683
 24,275
Prepaid expenses and other assets21,484  23,218  
Intangible lease origination costs, less accumulated amortization of $57,465 and $74,578, as of December 31, 2017 and 2016, respectively42,959
 54,279
Deferred lease costs, less accumulated amortization of $26,464 and $22,753, as of December 31, 2017 and 2016, respectively141,096
 125,799
Investment in development authority bonds120,000
 120,000
Other assets held for sale, less accumulated amortization of $34,152 as of December 31, 2016
 45,529
Intangible lease origination costs, less accumulated amortization of $33,731 and $65,348, as of December 31, 2019 and 2018, respectivelyIntangible lease origination costs, less accumulated amortization of $33,731 and $65,348, as of December 31, 2019 and 2018, respectively27,971  34,092  
Deferred lease costs, less accumulated amortization of $16,732 and $27,735, as of December 31, 2019 and 2018, respectivelyDeferred lease costs, less accumulated amortization of $16,732 and $27,735, as of December 31, 2019 and 2018, respectively76,385  77,439  
Other assets held for sale, less accumulated amortization of $10,222 as of December 31, 2019Other assets held for sale, less accumulated amortization of $10,222 as of December 31, 201923,917  —  
Total assets$4,511,539
 $4,299,793
Total assets$4,244,945  $4,173,993  
Liabilities:   Liabilities:
Line of credit and notes payable, net of deferred financing costs of $2,991 and $3,136, as of December 31, 2017 and 2016, respectively$971,185
 $721,466
Bonds payable, net of discount of $1,484 and $1,664 and deferred financing costs of $4,760 and $5,364, as of December 31, 2017 and 2016, respectively693,756
 692,972
Line of credit and notes payable, net of deferred financing costs of $2,084 and $2,692, as of December 31, 2019 and 2018, respectivelyLine of credit and notes payable, net of deferred financing costs of $2,084 and $2,692, as of December 31, 2019 and 2018, respectively$781,916  $629,308  
Bonds payable, net of discount of $1,124 and $1,304 and deferred financing costs of $3,552 and $4,158, as of December 31, 2019 and 2018, respectivelyBonds payable, net of discount of $1,124 and $1,304 and deferred financing costs of $3,552 and $4,158, as of December 31, 2019 and 2018, respectively695,324  694,538  
Operating lease liabilitiesOperating lease liabilities2,186  —  
Accounts payable, accrued expenses, and accrued capital expenditures125,002
 131,028
Accounts payable, accrued expenses, and accrued capital expenditures70,845  49,117  
Dividends payable23,961
 36,727
Dividends payable24,209  23,340  
Deferred income18,481
 19,694
Deferred income16,955  15,593  
Intangible lease liabilities, less accumulated amortization of $19,660 and $44,564, as of December 31, 2017 and 2016, respectively27,218
 33,375
Obligations under capital leases120,000
 120,000
Liabilities held for sale, less accumulated amortization of $1,239 as of December 31, 2016
 41,763
Intangible lease liabilities, less accumulated amortization of $15,127 and $21,766, as of December 31, 2019 and 2018, respectivelyIntangible lease liabilities, less accumulated amortization of $15,127 and $21,766, as of December 31, 2019 and 2018, respectively21,839  21,081  
Liabilities held for saleLiabilities held for sale3,054  —  
Total liabilities1,979,603
 1,797,025
Total liabilities1,616,328  1,432,977  
Commitments and Contingencies (Note 7)
 
Commitments and Contingencies (Note 7)—  —  
Equity:   Equity:
Common stock, $0.01 par value, 225,000,000 shares authorized, 119,789,106 and 122,184,193 shares issued and outstanding as of December 31, 2017 and 2016, respectively1,198
 1,221
Common stock, $0.01 par value, 225,000,000 shares authorized, 115,280,597 and 116,698,033 shares issued and outstanding as of December 31, 2019 and 2018, respectivelyCommon stock, $0.01 par value, 225,000,000 shares authorized, 115,280,597 and 116,698,033 shares issued and outstanding as of December 31, 2019 and 2018, respectively1,153  1,167  
Additional paid-in capital4,487,071
 4,538,912
Additional paid-in capital4,392,322  4,421,587  
Cumulative distributions in excess of earnings(1,957,236) (2,036,482)Cumulative distributions in excess of earnings(1,769,234) (1,684,082) 
Accumulated other comprehensive income (loss)903
 (883)Accumulated other comprehensive income (loss)(1,101) 2,344  
Total stockholders' equity attributable to Columbia Property TrustTotal stockholders' equity attributable to Columbia Property Trust2,623,140  2,741,016  
Noncontrolling interest in consolidated joint ventureNoncontrolling interest in consolidated joint venture5,477  —  
Total equity2,531,936
 2,502,768
Total equity2,628,617  2,741,016  
Total liabilities and equity$4,511,539
 $4,299,793
Total liabilities and equity$4,244,945  $4,173,993  
See accompanying notes.


F-4
F-3


COLUMBIA PROPERTY TRUST, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per-share amounts)
 Years Ended December 31,
 201920182017
Revenues:
Lease revenues$276,149  $283,252  $280,570  
Hotel income—  —  1,339  
Asset and property management fee income7,544  7,384  3,782  
Other property income5,144  7,307  3,309  
288,837  297,943  289,000  
Expenses:
Property operating costs93,275  88,813  87,805  
Hotel operating costs—  —  2,089  
Asset and property management fee expenses629  854  918  
Depreciation78,292  81,795  80,394  
Amortization27,908  32,554  32,403  
Impairment loss on real estate assets43,941  30,812  —  
General and administrative – corporate32,779  32,979  34,966  
General and administrative – joint venture3,567  3,108  1,454  
Pre-acquisition costs (Note 16)6,398  —  —  
286,789  270,915  240,029  
Other Income (Expense):
Interest expense(43,170) (56,499) (60,516) 
Gain (loss) on extinguishment of debt—  23,340  (325) 
Interest and other income173  6,894  9,529  
Gain on sale of unconsolidated joint venture interests—  762  —  
Income tax benefit (expense)(21) (37) 213  
Income from unconsolidated joint ventures8,004  8,003  2,651  
Gains on sales of real estate assets42,030  —  175,518  
7,016  (17,537) 127,070  
Net income9,064  9,491  176,041  
Less: net loss attributable to non-controlling interest in consolidated joint venture133  —  —  
Net income attributable to common stockholders$9,197  $9,491  $176,041  
Per-Share Information – Basic:
Net income attributable to common stockholders$0.08  $0.08  $1.45  
Weighted-average common shares outstanding116,261  117,888  120,795  
Per-Share Information – Diluted:
Net income attributable to common stockholders$0.08  $0.08  $1.45  
Weighted-average common shares outstanding116,458  118,311  121,159  
 Years Ended December 31,
 2017 2016 2015
Revenues:     
Rental income$257,059

$366,186
 $436,048
Tenant reimbursements23,511

69,770
 99,655
Hotel income1,339
 22,661
 24,309
Asset and property management fee income3,782
 2,122
 605
Other property income3,309
 12,804
 5,448
 289,000
 473,543
 566,065
Expenses:     
Property operating costs87,805
 154,968
 188,078
Hotel operating costs2,089
 18,686
 19,615
Asset and property management fee expenses918
 1,415
 1,816
Depreciation80,394
 108,543
 131,490
Amortization32,403
 56,775
 87,128
General and administrative – corporate34,966
 33,876
 29,683
General and administrative – unconsolidated joint ventures1,454
 
 
Acquisition expenses
 
 3,675
 240,029
 374,263
 461,485

48,971
 99,280
 104,580
Other Income (Expense):     
Interest expense(60,516) (67,609) (85,296)
Interest and other income9,529
 7,288
 7,254
Loss on interest rate swaps
 
 (1,110)
Loss on the early extinguishment of debt(325) (18,997) (3,149)
 (51,312) (79,318) (82,301)
Income (loss) before income tax, unconsolidated joint ventures, and gains on sales of real estate assets(2,341) 19,962
 22,279
Income tax benefit (expense)213
 (445) (378)
Income (loss) from unconsolidated joint ventures2,651
 (7,561) (1,142)
Income before gains on sales of real estate assets523
 11,956
 20,759
Gains on sales of real estate assets175,518
 72,325
 23,860
Net income$176,041
 $84,281
 $44,619
Per-Share Information – Basic:     
Net income$1.45
 $0.68
 $0.36
Weighted-average common shares outstanding – basic120,795
 123,130
 124,757
Per-Share Information – Diluted:     
Net income$1.45
 $0.68
 $0.36
Weighted-average common shares outstanding – diluted121,159
 123,228
 124,847


See accompanying notes.


F-5
F-4


COLUMBIA PROPERTY TRUST, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands)


Years Ended December 31,Years Ended December 31,
2017 2016 2015 201920182017
Net income$176,041
 $84,281
 $44,619
Net income$9,064  $9,491  $176,041  
Market value adjustment to interest rate swap1,786
 1,553
 (1,570)
Settlement of interest rate swap
 
 1,102
Market value adjustment to interest rate swapsMarket value adjustment to interest rate swaps(3,445) 1,441  1,786  
Comprehensive income$177,827
 $85,834
 $44,151
Comprehensive income5,619  10,932  177,827  
Less: net loss attributable to non-controlling interest in consolidated joint ventureLess: net loss attributable to non-controlling interest in consolidated joint venture133  —  —  
Comprehensive income attributable to common stockholdersComprehensive income attributable to common stockholders$5,752  $10,932  $177,827  
See accompanying notes.






F-6
F-5


COLUMBIA PROPERTY TRUST, INC.
CONSOLIDATED STATEMENTS OF EQUITY
(in thousands, except per-share amounts)


Stockholders' Equity
Equity Common StockAdditional
Paid-In
Capital
Cumulative
Distributions
in Excess of
Earnings
Accumulated Other
Comprehensive
Income (Loss)
TotalNoncontrolling InterestsTotal Equity
Common Stock 
Additional
Paid-In
Capital
 
Cumulative
Distributions
in Excess of
Earnings
 
Accumulated Other
Comprehensive
Income (Loss)
 Total SharesAmount
Shares Amount 
Balance, December 31, 2014124,973
 $1,249
 $4,601,808
 $(1,867,611) $(1,968) $2,733,478
Repurchases of common stock(721) (7) (16,328) 
 
 (16,335)
Common stock issued to employees and directors, and amortized (net of income tax witholdings)111
 1
 2,823
 
 
 2,824
Distributions to common stockholders ($1.20 per share)
 
 
 (149,924) 
 (149,924)
Net income
 
 
 44,619
 
 44,619
Market value adjustment to interest rate swap
 
 
 
 (1,570) (1,570)
Settlement of interest rate swap
 
 
 
 1,102
 1,102
Balance, December 31, 2015124,363

1,243

4,588,303

(1,972,916)
(2,436)
2,614,194
Repurchases of common stock(2,399) (24) (52,777) 
 
 (52,801)
Common stock issued to employees and directors, and amortized (net of income tax witholdings)220
 2
 3,386
 
 
 3,388
Distributions to common stockholders ($1.20 per share)
 
 
 (147,847) 
 (147,847)
Net income
 
 
 84,281
 
 84,281
Market value adjustment to interest rate swap
 
 
 
 1,553
 1,553
Balance, December 31, 2016122,184

1,221

4,538,912

(2,036,482)
(883)
2,502,768
Balance, December 31, 2016122,184  $1,221  $4,538,912  $(2,036,482) $(883) $2,502,768  $—  $2,502,768  
Repurchases of common stock(2,682) (26) (57,602) 
 
 (57,628)Repurchases of common stock(2,682) (26) (57,602) —  —  (57,628) —  (57,628) 
Common stock issued to employees and directors, and amortized (net of income tax witholdings)287
 3
 5,761
 
 
 5,764
Common stock issued to employees and directors, and amortized (net of income tax witholdings)287   5,761  —  —  5,764  —  5,764  
Distributions to common stockholders ($0.80 per share)
 
 
 (96,795) 
 (96,795)Distributions to common stockholders ($0.80 per share)—  —  —  (96,795) —  (96,795) —  (96,795) 
Net income
 
 
 176,041
 
 176,041
Net income—  —  —  176,041  —  176,041  —  176,041  
Market value adjustment to interest rate swap
 
 
 
 1,786
 1,786
Market value adjustment to interest rate swap—  —  —  —  1,786  1,786  —  1,786  
Balance, December 31, 2017119,789
 $1,198
 $4,487,071
 $(1,957,236) $903
 $2,531,936
Balance, December 31, 2017119,789  1,198  4,487,071  (1,957,236) 903  2,531,936  —  2,531,936  
Cumulative-effect adjustment for the adoption of ASU 2017-05Cumulative-effect adjustment for the adoption of ASU 2017-05—  —  —  357,755  —  357,755  —  357,755  
Cumulative-effect adjustment for the adoption of ASU 2014-09Cumulative-effect adjustment for the adoption of ASU 2014-09—  —  —  343  —  343  —  343  
Repurchases of common stockRepurchases of common stock(3,240) (32) (70,488) —  —  (70,520) —  (70,520) 
Common stock issued to employees and directors, and amortized (net of income tax witholdings)Common stock issued to employees and directors, and amortized (net of income tax witholdings)149   5,004  —  —  5,005  —  5,005  
Distributions to common stockholders ($0.80 per share)Distributions to common stockholders ($0.80 per share)—  —  —  (94,435) —  (94,435) —  (94,435) 
Net incomeNet income—  —  —  9,491  —  9,491  —  9,491  
Market value adjustment to interest rate swapMarket value adjustment to interest rate swap—  —  —  —  1,441  1,441  —  1,441  
Balance, December 31, 2018Balance, December 31, 2018116,698  1,167  4,421,587  (1,684,082) 2,344  2,741,016  —  2,741,016  
Repurchases of common stockRepurchases of common stock(1,616) (16) (33,500) —  —  (33,516) —  (33,516) 
Common stock issued to employees and directors, and amortized (net of income tax witholdings)Common stock issued to employees and directors, and amortized (net of income tax witholdings)198   4,235  —  —  4,237  —  4,237  
Distributions to common stockholders ($0.81 per share)Distributions to common stockholders ($0.81 per share)—  —  —  (94,349) —  (94,349) —  (94,349) 
Contributions from noncontrolling interest in consolidated joint ventureContributions from noncontrolling interest in consolidated joint venture—  —  —  —  —  —  5,610  5,610  
Allocation of net income (loss)Allocation of net income (loss)—  —  —  9,197  —  9,197  (133) 9,064  
Market value adjustment to interest rate swapMarket value adjustment to interest rate swap—  —  —  —  (3,445) (3,445) —  (3,445) 
Balance, December 31, 2019Balance, December 31, 2019115,280  $1,153  $4,392,322  $(1,769,234) $(1,101) $2,623,140  $5,477  $2,628,617  
See accompanying notes.


F-7
F-6


COLUMBIA PROPERTY TRUST, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
 Years Ended December 31,
 201920182017
Cash Flows From Operating Activities:
Net income$9,064  $9,491  $176,041  
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Straight-line rental income(13,230) (25,952) (32,737) 
Noncash operating lease expense720  —  —  
Depreciation78,292  81,795  80,394  
Amortization23,546  29,401  31,907  
Impairment loss on real estate assets43,941  30,812  —  
Noncash interest expense2,562  3,103  3,009  
(Gain) loss on extinguishment of debt—  (23,340) 325  
Gains on sales of real estate assets(42,030) —  (175,518) 
Income from unconsolidated joint ventures(8,004) (8,003) (2,651) 
Distributions of earnings from unconsolidated joint ventures27,977  28,802  3,681  
Gain on sale of unconsolidated joint venture interest—  (762) —  
Stock-based compensation expense6,622  6,966  7,580  
Changes in Assets and Liabilities, Net of Acquisitions and Dispositions:
Decrease (increase) in tenant receivables, net697  (2,947) 4,222  
Decrease (increase) in prepaid expenses and other assets(1,539) 7,871  (1,754) 
Decrease (increase) in accounts payable and accrued expenses5,560  (36,724) (28,133) 
Increase (decrease) in deferred income3,265  (2,888) (4,442) 
Net cash provided by operating activities137,443  97,625  61,924  
Cash Flows From Investing Activities:
Net proceeds from the sale of real estate375,004  284,608  737,631  
Net proceeds from the sale of investments in unconsolidated joint ventures—  235,083  —  
Real estate acquisitions and prepaid transaction costs(453,128) (23,034) (604,769) 
Capital improvements and development costs(66,994) (71,033) (86,805) 
Deferred lease costs paid(22,307) (24,816) (26,722) 
Investments in unconsolidated joint ventures(17,134) (38,763) (369,043) 
Distributions in excess of earnings from unconsolidated joint ventures14,250  13,685  1,985  
Net cash provided by (used in) investing activities(170,309) 375,730  (347,723) 
Cash Flows From Financing Activities:
Financing costs paid(162) (5,078) (1,269) 
Proceeds from lines of credit and notes payable802,000  579,000  783,000  
Repayments of lines of credit and notes payable(650,000) (872,175) (533,427) 
Distributions paid to stockholders(93,480) (95,056) (109,561) 
Redemptions of common stock(35,917) (72,495) (59,462) 
Contribution from noncontrolling interest in consolidated joint venture5,610  —  —  
Net cash provided by (used in) financing activities28,051  (465,804) 79,281  
Net increase (decrease) in cash and cash equivalents(4,815) 7,551  (206,518) 
Cash and cash equivalents, beginning of period17,118  9,567  216,085  
Cash and cash equivalents, end of period$12,303  $17,118  $9,567  
 Years Ended December 31,
 2017 2016 2015
Cash Flows from Operating Activities:     
Net income$176,041
 $84,281
 $44,619
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:     
Straight-line rental income(32,737) (21,875) (16,632)
Depreciation80,394
 108,543
 131,490
Amortization31,907
 52,530
 78,000
Noncash interest expense3,009
 3,549
 4,335
Loss on early extinguishment of debt325
 18,997
 3,149
Gain on interest rate swaps

 
 (1,532)
Gains on sales of real estate assets(175,518) (72,325) (23,860)
Loss (income) from unconsolidated joint ventures(2,651) 7,561
 1,142
Distributions of earnings from unconsolidated joint ventures3,681
 
 
Stock-based compensation expense7,580
 4,558
 3,548
Changes in Assets and Liabilities, Net of Acquisitions and Dispositions:     
Decrease (increase) in tenant receivables, net
4,222
 4,251
 (4,414)
Decrease (increase) in prepaid expenses and other assets(1,754) 5,533
 (2,155)
Increase (decrease) in accounts payable and accrued expenses
(28,133) (1,607) 3,330
Increase (decrease) in deferred income(4,442) (905) 2,060
Net cash provided by operating activities
61,924
 193,091
 223,080
Cash Flows From Investing Activities:     
Net proceeds from the sale of real estate737,631
 603,732
 596,734
Real estate acquisitions(604,769) 
 (1,062,031)
Deposits
 10,000
 
Capital improvements and development costs(86,805) (39,521) (83,371)
Deferred lease costs paid(26,722) (32,386) (22,531)
Investments in unconsolidated joint ventures(369,043) (16,212) (5,500)
Distributions in excess of earnings from unconsolidated joint ventures1,985
 
 
Net cash provided by (used in) investing activities(347,723) 525,613
 (576,699)
Cash Flows From Financing Activities:     
Financing costs paid(1,269) (3,114) (9,729)
Prepayments to settle debt and interest rate swap
 (17,921) (3,165)
Proceeds from lines of credit and notes payable783,000
 435,000
 1,884,000
Repayments of lines of credit and notes payable(533,427) (845,460) (1,854,512)
Proceeds from issuance of bonds payable
 348,691
 349,507
Repayment of bonds payable
 (250,000) 
Distributions paid to stockholders(109,561) (148,474) (112,570)
Redemptions of common stock(59,462) (53,986) (17,057)
Net cash provided by (used in) financing activities79,281
 (535,264) 236,474
Net increase (decrease) in cash and cash equivalents
(206,518) 183,440
 (117,145)
Cash and cash equivalents, beginning of period216,085
 32,645
 149,790
Cash and cash equivalents, end of period$9,567
 $216,085
 $32,645

See accompanying notes.


F-8
F-7


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Unit Holders and the General Partner of Columbia Property Trust Operating Partnership, L.P.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Columbia Property Trust Operating Partnership, L.P. and subsidiaries (the "Partnership") as of December 31, 2019 and 2018, the related consolidated statements of operations, comprehensive income, equity, and cash flows, for each of the three years in the period ended December 31, 2019, and the related notes and the schedule listed in the Index at Item 15(a)(2) (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Partnership as of December 31, 2019 and 2018, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2019, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on the Partnership's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Partnership is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Partnership’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
/s/Deloitte & Touche LLP
Atlanta, Georgia
February 13, 2020
We have served as the Partnership's auditor since 2019.


F-9

COLUMBIA PROPERTY TRUST OPERATING PARTNERSHIP, L.P.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per-share amounts)
December 31,
20192018
Assets:
Real Estate Assets, at Cost:
Land$843,546  $775,656  
Buildings and improvements, less accumulated depreciation of $252,034 and $324,426, as of December 31, 2019 and 2018, respectively1,668,358  1,720,271  
Intangible lease assets, less accumulated amortization of $58,658 and $84,881, as of December 31, 2019 and 2018, respectively61,025  98,540  
Construction in progress51,240  32,526  
Real estate assets held for sale, less accumulated depreciation and amortization of $22,464 as of December 31, 201969,274  —  
Total real estate assets2,693,443  2,626,993  
Operating lease assets27,843  —  
Investments in unconsolidated joint ventures1,054,460  1,071,353  
Cash and cash equivalents9,522  10,931  
Tenant receivables, net of allowance for doubtful accounts of $4 as of December 31, 20182,039  2,956  
Straight-line rent receivable70,985  71,675  
Prepaid expenses and other assets21,044  21,680  
Intangible lease origination costs, less accumulated amortization of $33,731 and $65,348, as of December 31, 2019 and 2018, respectively27,971  34,092  
Deferred lease costs, less accumulated amortization of $14,272 and $19,342, as of December 31, 2019 and 2018, respectively73,699  65,484  
Other assets held for sale, less accumulated amortization of $3,971 as of December 31, 20195,573  —  
Total assets$3,986,579  $3,905,164  
Liabilities:
Line of credit and notes payable, net of deferred financing costs of $2,084 and $2,692, as of December 31, 2019 and 2018, respectively$781,916  629,308
Bonds payable, net of discount of $1,124 and $1,304 and deferred financing costs of $3,552 and $4,158, as of December 31, 2019 and 2018, respectively695,324  694,538
Accounts payable, accrued expenses, and accrued capital expenditures68,535  36,133
Due to affiliates140,444  141,145
Deferred income16,299  13,245
Intangible lease liabilities, less accumulated amortization of $15,127 and $21,766, as of December 31, 2019 and 2018, respectively21,839  21,081
Liabilities held for sale as of December 31, 20191,809  —  
Total liabilities1,726,166  1,535,450
Commitments and Contingencies (Note 7)—  —  
Partners' Capital:
Columbia Property Trust, Inc.2,254,936  2,369,714
Noncontrolling interest in consolidated joint venture5,477  —  
Total capital2,260,413  2,369,714
Total liabilities and capital$3,986,579  $3,905,164  

See accompanying notes.
F-10

COLUMBIA PROPERTY TRUST OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per-share amounts)
 Years Ended December 31,
 201920182017
Revenues:
Lease revenues$248,838  $254,988  $252,149  
Other property income99  1,323  (609) 
248,937  256,311  251,540  
Expenses:
Property operating costs82,205  77,526  77,719  
Asset and property management fee expenses3,952  3,856  3,977  
Depreciation67,773  71,934  72,010  
Amortization26,663  31,451  31,035  
Impairment loss on real estate assets43,941  30,812  —  
General and administrative – corporate7,927  9,469  9,232  
General and administrative – joint venture43  —  —  
Pre-acquisition expenses4,160  —  —  
236,664  225,048  193,973  
Other Income (Expense):
Interest expense(49,470) (66,046) (73,877) 
Gain (loss) on extinguishment of debt—  23,340  (325) 
Interest and other income64  6,894  6,784  
Gain on sale of unconsolidated joint venture interests—  762  —  
Income tax benefit (expense)—  —  (3) 
Income from unconsolidated joint ventures8,004  8,003  2,651  
Gains on sales of real estate assets42,030  —  170,733  
628  (27,047) 105,963  
Net income12,901  4,216  163,530  
Less: net loss attributable to non-controlling interest in consolidated joint venture133  —  —  
Net income attributable to Columbia Property Trust, Inc.13,034  4,216  163,530  

See accompanying notes.
F-11

COLUMBIA PROPERTY TRUST OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands)

Years Ended December 31,
 201920182017
Net income12,901  4,216  163,530  
Market value adjustment to interest rate swap(3,445) 1,441  1,786  
Comprehensive income9,456  5,657  165,316  
Less: net loss attributable to non-controlling interest in consolidated joint venture133  —  —  
Comprehensive income attributable to Columbia Property Trust, Inc.$9,589  $5,657  $165,316  
See accompanying notes.

F-12

COLUMBIA PROPERTY TRUST OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENTS OF CAPITAL
(in thousands, except per-share amounts)

 Columbia Property Trust, Inc.Noncontrolling InterestTotal Capital
Balance, December 31, 2016$1,768,862  $—  $1,768,862  
Contributions296,083  —  296,083  
Distributions(234,241) —  (234,241) 
Net income163,530  —  163,530  
Market value adjustment to interest rate swap1,786  —  1,786  
Balance, December 31, 20171,996,020  —  1,996,020  
Cumulative-effect adjustment for the adoption of ASU 2017-05357,755  —  357,755  
Contributions177,833  —  177,833  
Distributions(167,551) —  (167,551) 
Net income4,216  —  4,216  
Market value adjustment to interest rate swap1,441  —  1,441  
Balance, December 31, 20182,369,714  —  2,369,714  
Contributions12,053  5,610  17,663  
Distributions(136,420) —  (136,420) 
Net income13,034  (133) 12,901  
Market value adjustment to interest rate swap(3,445) —  (3,445) 
Balance, December 31, 2019$2,254,936  $5,477  $2,260,413  
See accompanying notes.
F-13

COLUMBIA PROPERTY TRUST OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
 Years Ended December 31,
 201920182017
Cash Flows From Operating Activities:
Net income$12,901  $4,216  $163,530  
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Straight-line rental income(12,077) (22,654) (29,790) 
Noncash operating lease expense836  —  —  
Depreciation67,773  71,934  72,010  
Amortization22,177  28,185  30,376  
Impairment loss on real estate assets43,941  30,812  —  
Noncash interest expense2,562  3,103  3,009  
(Gain) loss on extinguishment of debt—  (23,340) 325  
Gains on sales of real estate assets(42,030) —  (170,733) 
(Income) loss from unconsolidated joint ventures(8,004) (8,003) (2,651) 
Distributions of earnings from unconsolidated joint ventures27,977  28,802  3,681  
Gain on sale of unconsolidated joint venture interest—  (762) —  
Changes in Assets and Liabilities, Net of Acquisitions and Dispositions:
Decrease (increase) in tenant receivables, net918  (2,842) 4,111  
Decrease (increase) in prepaid expenses and other assets(1,662) 7,341  (1,001) 
Increase (decrease) in accounts payable and accrued expenses3,489  (35,708) (29,032) 
Increase (decrease) in deferred income3,712  (1,919) (4,056) 
Net cash provided by operating activities122,513  79,165  39,779  
Cash Flows From Investing Activities:
Net proceeds from the sale of real estate375,004  284,608  618,199  
Net proceeds from the sale of investments in unconsolidated joint ventures—  235,083  —  
Real estate acquisitions(453,128) (23,034) (604,769) 
Capital improvements and development costs(65,961) (65,810) (53,480) 
Deferred lease costs paid(22,667) (25,364) (26,710) 
Investments in unconsolidated joint ventures(17,134) (38,763) (369,043) 
Distributions in excess of earnings from unconsolidated joint ventures14,250  13,685  1,985  
Net cash provided by (used in) investing activities(169,636) 380,405  (433,818) 
Cash Flows From Financing Activities:
Financing costs paid(162) (5,078) (1,269) 
Proceeds from lines of credit and notes payable802,000  579,000  783,000  
Repayments of lines of credit and notes payable(650,000) (872,175) (533,427) 
Contributions from Columbia Property Trust17,663  11,912  296,083  
Distributions to Columbia Property Trust(129,397) (167,551) (169,023) 
Contributions from noncontrolling interest in consolidated joint venture5,610  —  —  
Net cash provided by (used in) financing activities45,714  (453,892) 375,364  
Net increase (decrease) in cash and cash equivalents(1,409) 5,678  (18,675) 
Cash and cash equivalents, beginning of period10,931  5,253  23,928  
Cash and cash equivalents, end of period$9,522  $10,931  $5,253  
See accompanying notes.
F-14

COLUMBIA PROPERTY TRUST, INC.
COLUMBIA PROPERTY TRUST OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2017, 2016,2019, 2018, AND 20152017

1.Organization
1.Organization
Columbia Property Trust, Inc. ("Columbia Property Trust") (NYSE: CXP) is a Maryland corporation that operates as a real estate investment trust ("REIT") for federal income tax purposes and owns and operates commercial real estate properties. Columbia Property Trust was incorporated in 2003, commenced operations in 2004, and conducts business primarily through Columbia Property Trust Operating Partnership, L.P. ("Columbia Property Trust OP"), a Delaware limited partnership.partnership in which Columbia Property Trust is the general partner and sole owner as of December 31, 2019. Columbia Property Trust OP and possesses full legal control and authority over its operations. Columbia Property Trust OP acquires, develops, redevelops, owns, leases, and operates real properties directly and through wholly and partially owned subsidiaries or through unconsolidatedand joint ventures. Unless stated otherwise noted,or the context otherwise requires, references to "Columbia Property Trust," "the Company," "we," "us," and "our" shall mean, collectively, Columbia Property Trust, "we," "us," or "our" herein shall includeColumbia OP, and the entities consolidated by both Columbia Property Trust and all subsidiaries of Columbia Property Trust, directOP; and indirect.references to "Columbia OP" shall mean Columbia OP and the entities consolidated by Columbia OP.
Columbia Property Trust typically invests in high-quality, income-generating office properties. As of December 31, 2017, Columbia Property Trust2019, the Company owned 1917 operating properties and 3 properties under development or redevelopment, of which 1413 were wholly owned and five7 were owned through unconsolidated joint ventures. These properties areventures, located primarily in New York, San Francisco, and Washington, D.C., and Atlanta, contain As of December 31, 2019 the operating properties contained a total of 9.27.3 million rentable square feet and were approximately 96.2% leased as97.1% leased.

2. Summary of December 31, 2017.Significant Accounting Policies
2.Summary of Significant Accounting Policies
Basis of Presentation
The accompanying consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"), which require us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.
Columbia Property Trust have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") andTrust's consolidated financial statements include the accounts of Columbia Property Trust, Columbia Property Trust OP, and their consolidated subsidiaries. Columbia OP's consolidated financial statements include the accounts of Columbia OP, and its consolidated subsidiaries. We consolidate any variable interest entity ("VIE") in which Columbia Property Trust or Columbia Property Trust OP waswe are deemed the primary beneficiary. With respect to entities that are not VIEs, Columbia Property Trust'sour consolidated financial statements shall also include the accounts of any entity in which Columbia Property Trust, Columbia Property Trust OP, or its subsidiarieswe own a controlling financial interest, and any limited partnership in which Columbia Property Trust, Columbia Property Trust OP, or its subsidiarieswe own a controlling general partnership interest. In determining whether Columbia Property Trust or Columbia Property Trust OP hasowns a controlling interest, the following factors are considered, among other things: the ownership of voting interests, protective rights, and participatory rights of the investors.
All intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates
The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying consolidated financial statements and the accompanying notes. Actual results could differ from those estimates.
Fair Value Measurements
Columbia Property Trust estimates the fair value of its assets and liabilities (where currently required under GAAP) consistent with the provisions of Accounting Standard Codification 820, Fair Value Measurements ("ASC 820"). Under this standard, fair value is defined as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date. While
F-15

various techniques and assumptions can be used to estimate fair value depending on the nature of the asset or liability, the accounting standard for fair value measurements and disclosures provides the following fair value technique parameters and hierarchy, depending upon availability:
Level 1 – Assets or liabilities for which the identical term is traded on an active exchange, such as publicly traded instruments or futures contracts.
Level 2 – Assets and liabilities valued based on observable market data for similar instruments.
Level 3 – Assets or liabilities for which significant valuation assumptions are not readily observable in the market. Such assets or liabilities are valued based on the best available data, some of which may be internally developed. Significant assumptions may include risk premiums that a market participant would consider.


F-8


Real Estate Assets
Real estate assets are stated at cost, less accumulated depreciation and amortization. Amounts capitalized to real estate assets consist of the cost of acquisition or construction, and any tenant improvements or major improvements and betterments that extend the useful life of the related asset. All repairs and maintenance costs are expensed as incurred. Additionally, Columbia Property Trust capitalizes interest while the development of a real estate asset is in progress. During the years ended December 31, 2017 and 2016, $0.7 million and $0.3 million of interest was capitalized, respectively.
Columbia Property Trust is required to make subjective assessments as to the useful lives of its depreciable assets. To determine the appropriate useful life of an asset, Columbia Property Trust considers the period of future benefit of the asset. These assessments have a direct impact on net income. The estimated useful lives of its assets by class are as follows:
Buildings40-4540 years
Building and site improvements5-25 years
Tenant improvementsShorter of economic life or lease term
Intangible lease assetsLease term

As further described in Note 5, Line of Credit and Notes Payable, Columbia Property Trust capitalizes interest incurred on outstanding debt balances as well as joint venture investments, as appropriate, during development or redevelopment of real estate held directly or in joint ventures. During 2019 and 2018, $5.1 million and $3.8 million of interest was capitalized to construction in progress, respectively; and $1.3 million and $0.2 million of interest was capitalized to investments in unconsolidated joint ventures, respectively.
Assets Held for Sale
Columbia Property Trust classifies properties as held for sale according to Accounting Standard Codification 360, Accounting for the Impairment or Disposal of Long-Lived Assets ("ASC 360"). According to ASC 360, properties having separately identifiable operations and cash flows, are considered held for sale when the following criteria are met:
Management, having the authority to approve the action, commits to a plan to sell the property.
The property is available for immediate sale in its present condition, subject only to terms that are usual and customary for sales of such property.
An active program to locate a buyer and other actions required to complete the plan to sell the property have been initiated.
The property is being actively marketed for sale at a price that is reasonable in relation to its current fair value.
Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.
The sale of the property is probable and transfer of the property is expected to qualify for recognition as a completed sale, within one year.
F-16

At such time that a property is determined to be held for sale, its carrying amount is adjusted to the lower of its depreciated book value or its estimated fair value, less costs to sell, and depreciation is no longer recognized; and assets and liabilities are required to be classified as held for sale on the accompanying consolidated balance sheet. As of December 31, 2019, Cranberry Woods Drive and Pasadena Corporate Park met the aforementioned criteria; thus, these properties are classified as held for sale in the accompanying consolidated balance sheets. The sale of Cranberry Woods closed on January 16, 2020. As of December 31, 2018, none of Columbia Property Trust's properties met the criteria to be classified as held for sale in the accompanying consolidated balance sheet.
The major classes of assets and liabilities classified as held for sale are provided below (in thousands):
December 31, 2019
Real Estate Assets Held for Sale:
Real estate assets, at cost:
Land$57,117 
Buildings and improvements, less accumulated depreciation of $80,543157,701 
Construction in progress138 
Total real estate assets held for sale, net$214,956 
Other Assets Held for Sale:
Tenant receivables$156 
Straight-line rent receivable12,591 
Prepaid expenses and other assets334 
Deferred lease costs, less accumulated amortization of $10,22210,836 
Total other assets held for sale, net$23,917 
Liabilities Held for Sale:
Accounts payable, accrued expenses, and accrued capital expenditures$1,151 
Deferred income1,903 
Total liabilities held for sale$3,054 

Evaluating the Recoverability of Real Estate Assets
Columbia Property Trust continually monitors events and changes in circumstances that could indicate that the net carrying amounts of its real estate and related intangible assets and liabilities, of both operating properties and properties under construction,redevelopment, may not be recoverable. When indicators of potential impairment are present that suggest that the net carrying amounts of real estate assets and related intangible assets (liabilities)and liabilities may not be recoverable, Columbia Property Trust assesses the recoverability of these net assets by determining whether the respective carrying values will be recovered through the estimated undiscounted future operating cash flows expected from the use of the net assets and their eventual disposition. In the event that such expected undiscounted future cash flows do not exceed the carrying values, Columbia Property Trust adjusts the carrying valuevalues of the real estate assets and related intangible assets and liabilities to the estimated fair values, pursuant to the property, plant, and equipment accounting standard for the impairment or disposal of long-lived assets, and recognizes an impairment loss. At such time that a property is required to be classified as held for sale, its net carrying amount is adjusted to the lower of its depreciated book value or its estimated fair value, less costs to sell, and depreciation is no longer recognized.
Estimated fair values are calculated based on the following hierarchy of information: (Level 1)(i) recently quoted market prices, (Level 2)(ii) market prices for comparable properties, or (Level 3)(iii) the present value of future cash flows, including estimated residual value. Certain of Columbia Property Trust's assets may be carried at an amount that exceeds that which could be realized in a current disposition transaction. Columbia Property Trust has determined that the carrying values of its real estate assets and related intangible assets are recoverable as of December 31, 2017.
Projections of expected future operating cash flows require that Columbia Property Trust estimatesestimate future market rental income amounts subsequent to the expiration of current lease agreements, property operating expenses, the number of months it takes to re-lease the property, and the number of years the property is held for investment, among other factors. Due to the inherent subjectivity of the assumptions used to project future cash flows, estimated fair values may differ from the values that would be realized in market transactions. Certain of
Assets Held for Sale
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Columbia Property Trust's assets may be carried at an amount that exceeds that which could be realized in a current disposition transaction. Columbia Property Trust classifies properties as held for sale according to Accounting Standard Codification 360, Accounting for the Impairment or Disposal of Long-Lived Assets ("ASC 360"). According to ASC 360, properties, having separately identifiable operations and cash flows, are considered held for sale when the following criteria are met:
Management, having the authority to approve the action, commits to a plan to sell the property.
The property is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such property.
An active program to locate a buyer and other actions required to complete the plan to sell the property have been initiated.
The property is being actively marketed for sale at a price that is reasonable in relation to its current fair value.
Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made orhas determined that the plan will be withdrawn.carrying values of its real estate assets and related intangible assets are recoverable as of December 31, 2019.
The saleIn the fourth quarter of 2019, Columbia Property Trust recorded an impairment loss of $20.6 million on Pasadena Corporate Park. Upon deciding to exit the property is probable (i.e. typically subjectLos Angeles market, Columbia Property Trust began to a binding sale contract with a non-refundable deposit), and transfer of the property is expected to qualify for recognition as a completed sale, within one year.
At such time that a property is determined to be heldmarket for sale its only asset therein, Pasadena Corporate Park, in the fourth quarter of 2019. In January 2020, Columbia Property Trust entered into a contract to sell Pasadena Corporate Park, and anticipates closing on the sale in the first quarter of 2020. As a result, as of December 31,2019, Columbia Property Trust reduced the carrying amount is adjustedvalue of Pasadena Corporate Park to the lower of its depreciated book value orreflect its estimated fair value less costsof $74.5 million, determined based on estimated net sale proceeds (Level 1), by recording an impairment loss of $20.6 million.
In the third quarter of 2019, Columbia Property Trust recognized an impairment loss of $23.4 million as a result of changing its holding period expectations for Lindbergh Center in Atlanta, Georgia. Columbia Property Trust entered into a contract to sell Lindbergh Center in the third quarter of 2019, and depreciation is no longer recognized; and assets and liabilities are requiredclosed the sale on September 26, 2019. As a result, Columbia Property Trust reduced the carrying value of Lindbergh Center to reflect its estimated fair value, based on the estimated net sale proceeds of $181.0 million (Level 1), by recording an impairment loss of $23.4 million in the third quarter of 2019.


F-9


to be classified as held2018, Columbia Property Trust recognized an impairment loss of $30.8 million in connection with changing the holding period expectations for 222 East 41st Street in New York. Columbia Property Trust widely marketed this property for sale during the second quarter and, as a result, entered into an agreement to sell this property on May 25, 2018 and closed on the accompanying consolidated balance sheet. As of December 31, 2017, none ofsale on May 29, 2018. Upon entering into the sale agreement, Columbia Property Trust's properties metTrust reduced 222 East 41st Street's carrying value to reflect its fair value, estimated based on the criteria to be classified as held for salenet contract price of $284.6 million (Level 1), by recording an impairment loss of $30.8 million in the accompanying consolidated balance sheet. Assecond quarter of December 31, 2016, Key Center Tower, Key Center Marriott, 5 Houston Center, Energy Center I, and 515 Post Oak were subject to binding sale contracts and met the other aforementioned criteria; thus, these properties are classified as held for sale in the accompanying consolidated balance sheet as of that date. The sale of 5 Houston Center, Energy Center I, and 515 Post Oak closed on January 6, 2017, and the sale of Key Center Tower and Key Center Marriott closed on January 31, 2017 (see Note 3, Real Estate Transactions).
The major classes of assets and liabilities classified as held for sale as of December 31, 2016, are provided below (in thousands):
 December 31, 2016
Real Estate Assets Held for Sale: 
Real Estate Assets, at Cost: 
Land$30,243
Buildings and improvements, less accumulated depreciation of $152,246366,126
Intangible lease assets, less accumulated amortization of $28,54513,365
Construction in progress2,772
Total real estate assets held for sale, net$412,506
Other Assets Held for Sale: 
Tenant receivables, net of allowance for doubtful accounts$1,722
Straight-line rent receivable20,221
Prepaid expenses and other assets3,184
Intangible lease origination costs, less accumulated amortization of $22,9491,815
Deferred lease costs, less accumulated amortization of $11,20318,587
Total other assets held for sale, net$45,529
Liabilities Held for Sale: 
Accounts payable, accrued expenses, and accrued capital expenditures$34,812
Deferred income4,214
Intangible lease liabilities, less accumulated amortization of $1,2392,737
Total liabilities held for sale, net$41,763
2018.
Allocation of Purchase Price of Acquired Assets
Upon the acquisition of real properties, Columbia Property Trust allocates the purchase price of properties and related transaction costs to tangible assets, consisting of land, building, site improvements, and identified intangible assets and liabilities, including the value of in-place leases, based in each case on Columbia Property Trust's estimate of their fair values in accordance with ASC 820 (see Fair"Fair Value MeasurementsMeasurements" section above for additional details). In conjunction with certain acquisitions, Columbia Property Trust adopted ASU 2017-01,has entered into master lease agreements, which obligate the seller to pay rent pertaining to certain nonrevenue-producing spaces to mitigate the negative effects of lower rental revenues. Columbia Property Trust records payments receivable under such master lease agreements as described ina reduction of the Recent Accounting Pronouncements section below, effective October 1,property basis rather than income. Columbia Property Trust received no proceeds for master leases during 2019, 2018, or 2017. As a result, transaction costs for properties acquired in the fourth quarter have been capitalized and included in the purchase price allocated for properties acquired in the period. Prior to October 1, 2017, transaction costs were expensed and included in acquisition expense on the accompanying statements of operations.
The fair values of the tangible assets of an acquired property (which includes land, building, and site improvements) are determined by valuing the property as if it were vacant, and the "as-if-vacant" value is then allocated to land, building, and site improvements based on management's determination of the relative fair value of these assets. Management determines the as-if-vacant fair value of a property using methods similar to those used by independent appraisers. Factors considered by management in performing these analyses include an estimate of carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases, including leasing commissions and other related costs. In estimating carrying costs, management includes real estate taxes, insurance, and other operating expenses during the expected lease-up periods based on current market demand.
Intangible Assets and Liabilities Arising From In-Place Leases Where Columbia Property Trust Is the Lessor
As further described below, in-place leases with Columbia Property Trust as the lessor may have values related to:to direct costs associated with obtaining a new tenant that are avoided for in-place leases, opportunity costs associated with lost rentals that are avoided by acquiring an in-place lease, tenant relationships, and effective contractual rental rates that are above or below market rates:

market:

F-18
F-10


Direct costs associated with obtaining a new tenant that are avoided for in-place leases, including commissions, tenant improvements,improvement allowances, and other direct costs, are estimated based on management's consideration of current market costs to execute a similar lease. Such direct costs are included in intangible lease origination costs in the accompanying consolidated balance sheets and are amortized to expense over the remaining terms of the respective leases.
The value of opportunity costs associated with lost rentals avoided by acquiring an in-place lease is calculated based on contractual amounts to be paid pursuant to the in-place leases over a market absorption period for a similar lease. Such opportunity costs ("Absorption Period Costs") are included in intangible lease assets in the accompanying consolidated balance sheets and are amortized to expense over the remaining terms of the respective leases.
The value of effective rental rates of in-place leases that are above or below the market rates of comparable leases is calculated based on the present value (using a discount rate that reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be received pursuant to the in-place leases and (ii) management's estimate of fair market lease rates for the corresponding in-place leases. This calculation includes significantly below- marketbelow-market renewal options for which exercise of the renewal option appears to be reasonably assured. These intangible assets or liabilities are measured over the actual or assumed (in the case of renewal options) remaining lease terms. The capitalized above-market and below-market lease values are recorded as intangible lease assets or liabilities and amortized as an adjustment to rental income over the remaining terms of the respective leases.
As of December 31, 20172019 and 2016,2018, Columbia Property Trust had the following gross intangible in-place lease assets and liabilities excluding amounts held for sale (in thousands):
 Intangible Lease AssetsIntangible
Lease
Origination
Costs
Intangible
Below-Market
In-Place Lease
Liabilities
Above-Market
In-Place
Lease Assets 
 Absorption
Period Costs 
 
December 31, 2019Gross$2,481  $117,203  $61,702  $36,966  
Accumulated Amortization(1,202) (57,457) (33,731) (15,127) 
Net$1,279  $59,746  $27,971  $21,839  
December 31, 2018Gross$3,174  $147,668  $99,440  $42,847  
Accumulated Amortization(1,060) (81,220) (65,348) (21,766) 
Net$2,114  $66,448  $34,092  $21,081  
  Intangible Lease Assets 
Intangible
Lease
Origination
Costs
 
Intangible
Below-Market
In-Place Lease
Liabilities
 
Above-Market
In-Place
Lease Assets
 
Absorption
Period Costs
 
December 31, 2017Gross$2,481
 $149,927
 $100,424
 $46,878
 Accumulated Amortization(833) (70,465) (57,465) (19,660)
 Net$1,648
 $79,462
 $42,959
 $27,218
December 31, 2016Gross$10,589
 $154,582
 $128,857
 $77,939
 Accumulated Amortization(9,305) (83,254) (74,578) (44,564)
 Net$1,284
 $71,328
 $54,279
 $33,375

During 2017, 2016,2019, 2018, and 2015,2017, Columbia Property Trust recognized the following amortization of intangible lease assets and liabilities (in thousands):
 Intangible Lease AssetsIntangible
Lease
Origination
Costs
Intangible
Below-Market
In-Place Lease
Liabilities
Above-Market
In-Place
Lease Assets
Absorption
Period Costs
For the Years Ended December 31,
2019$288  $13,511  $7,398  $5,395  
2018$228  $17,137  $9,660  $6,851  
2017$519  $16,807  $10,124  $6,883  
F-19
 Intangible Lease Assets 
Intangible
Lease
Origination
Costs
 
Intangible
Below-Market
In-Place Lease
Liabilities
Above-Market
In-Place
Lease Assets
 
Absorption
Period Costs
 
For the Years Ended December 31,       
2017$519
 $16,807
 $10,124
 $6,883
2016$2,513
 $28,718
 $17,501
 $12,996
2015$4,412
 $45,972
 $28,530
 $19,345


F-11


The remaining net intangible assets and liabilities as of December 31, 2017, excluding amounts held for sale,2019, will be amortized as follows (in thousands):
 Intangible Lease AssetsIntangible
Lease
Origination
Costs
Intangible
Below-Market
In-Place Lease
Liabilities
Above-Market
In-Place
Lease Assets
Absorption
Period Costs
For the Years Ending December 31,
2020$172  $12,871  $5,866  $5,483  
2021172  9,328  4,516  3,191  
2022172  7,959  3,429  2,910  
2023172  6,455  2,903  2,336  
2024172  5,594  2,586  1,990  
Thereafter419  17,539  8,671  5,929  
$1,279  $59,746  $27,971  $21,839  
Weighted-average amortization period6.6 years5.0 years4.9 years5.3 years
 Intangible Lease Assets 
Intangible
Lease
Origination
Costs
 
Intangible
Below-Market
In-Place Lease
Liabilities
Above-Market
In-Place
Lease Assets
 
Absorption
Period Costs
 
For the Years Ending December 31,       
2018$203
 $16,898
 $9,566
 $6,325
2019203
 14,665
 8,651
 5,968
2020203
 12,800
 7,770
 4,535
2021203
 8,112
 3,727
 1,591
2022203
 6,585
 2,708
 1,287
Thereafter633
 20,402
 10,537
 7,512
 $1,648
 $79,462
 $42,959
 $27,218
Weighted-average amortization period8 years
 5 years
 5 years
 6 years

Intangible Assets and Liabilities Arising From In-Place Leases Where Columbia Property Trust Is the Lessee
In-place ground leases where Columbia Property Trust is the lessee may have positive or negative value associated with effective contractual rental rates that are above or below market rates at the timeAs of execution or assumption. Such values are calculated based on the present value (using a discount rate that reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place lease and (ii) management's estimate of fair market lease rates for the corresponding in-place lease at the time of execution or assumption. This calculation includes significantly below-market renewal options for which exercise of the renewal option appears to be reasonably assured. These intangible assets and liabilities are measured over the actual or assumed (in the case of renewal options) remaining lease terms. The capitalized above-market and below-market in-place lease values are recorded as intangible lease liabilities and assets, respectively, and are amortized as an adjustment to property operating cost over the remaining term of the respective leases.December 31, 2018, Columbia Property Trust had gross below-market lease assets of approximately $140.9$32.6 million, as of December 31, 2017 and 2016, net of accumulated amortization of $22.8 million and $20.2 million as of December 31, 2017 and 2016, respectively. Columbia Property Trust recognized amortization expense related to these assets of approximately $2.5 million for 2017, 2016, and 2015.
As of December 31, 2017, the remaining net$2.6 million. These below-market lease asset will be amortizedassets were reclassified to operating lease assets upon adoption of ASC 842, effective January 1, 2019, as follows (in thousands):
For the Years Ending December 31: 
2018$2,549
20192,549
20202,549
20212,549
20222,549
Thereafter105,405
 $118,150
Weighted-average amortization period47 years
described in the "Recent Accounting Pronouncements" section below (see Note 10, Leases, for additional information).
Cash and Cash Equivalents
Columbia Property Trust considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash equivalents may include cash and short-term investments. Short-term investments are stated at cost, which approximates fair value as of December 31, 20172019 and 2016.2018.
Tenant Receivables Net
Tenant receivables consist of rental and reimbursement billings due from tenants. Tenant receivables are recorded at the original amount earned, less an allowance for any doubtful accounts, which approximates fair value. Management assesses the realizability of tenant receivables on an ongoing basis, and, provides for allowances asif at any point during the term of a lease it is determined that the collectability of a tenant receivable is not probable, such balances, or portions thereof, become uncollectible.


F-12


ASC 842 on January 1, 2019, Columbia Property Trust adjusted therecorded an allowance for doubtful accounts when a tenant receivable became uncollectible by recording a provision for doubtful accounts, net of recoveries, in general and administrative – corporate expenses. For 2018, $63,000 of such expenses in the accompanying consolidated statements of operations of approximately $26,000were recorded to general and $289,000 for 2017 and 2016, respectively.administrative – corporate expenses.
Straight LineStraight-Line Rent Receivable
Straight lineStraight-line rent receivable reflects the amount of cumulative adjustments necessary to present rental income on a straight-line basis. Columbia Property Trust recognizes rental revenues on a straight-line basis, ratably over the term of each lease; however, leases often provide for payment terms that differ from the revenue recognized. When the amount of cash receivedbilled is less than the amount of revenue recognized, typically early in the lease, straight linestraight-line rent receivable is recorded for the difference. The receivable is depleted during periods later in the lease when the amount of cash paid by the tenant is greater than the amount of revenue recognized.
F-20

Prepaid Expenses and Other Assets
Prepaid expenses and other assets primarily include earnest money deposits, escrow accounts held by lenders to pay future real estate taxes, insurance and tenant improvements, notes receivable, nontenant receivables, prepaid taxes, insurance and operating costs, unamortized deferred financing costs related to the line of credit (the "Revolving Credit Facility"), interest rate swaps (when in an asset position), certain corporate assets, hotel inventory, and deferred tax assets. Prepaid expenses are recognized over the period to which the good or service relates. Other assets are written off when the asset no longer has future value, or when the company is no longer obligated for the corresponding liability.
Deferred Financing Costs
Deferred financing costs include costs incurred to secure debt from third-party lenders. Deferred financing costs, except for costs related to the Revolving Credit Facility, are presented as a direct reduction to the carrying amount of the related debt for all periods presented. Deferred financing costs related to the Revolving Credit Facility are included in prepaid expenses and other assets. Columbia Property Trust recognized amortization of deferred financing costs for the years ended December 31, 2017, 2016,2019, 2018, and 20152017 of approximately $2.8$2.4 million, $3.3$2.9 million, and $4.4$2.8 million, respectively, which is included in interest expense in the accompanying consolidated statements of operations.
Deferred Lease Costs
Deferred lease costs include costs incurred to procure leases that are paid to third parties or tenants, and incentives that are provided to tenants under the terms of their leases. These costs are capitalized and amortized on a straight-line basis over the terms of the lease. Amortization of third-party leasing costs is reflected as amortization expense, and amortization of lease incentives is reflected as an adjustment to rental income. During 2017, 2016,2019, 2018, and 2015,2017, Columbia Property Trust recognized amortization expense for deferred lease costs of $5.2$6.3 million, $9.3$5.5 million, and $8.9$5.2 million, respectively. During 2017, 2016,2019, 2018, and 2015,2017, Columbia Property Trust recognized adjustments to rental income for amortization of deferred lease costs of $3.3$0.7 million, $3.9$2.1 million, and $3.7$3.3 million, respectively. Upon receiving notification of a tenant's intention to terminate a lease, unamortized deferred lease costs are amortized over the shortened lease period. As of December 31, 2017 and 2016, deferred lease costs includes $68.4 million and $69.0 million, respectively, in unamortized lease incentives for a lease at the 222 East 41st Street Property, which will continue to be amortized to rental income over the approximately 30-year remaining lease term.
Investments in Development Authority Bonds and Obligations Under Capital Leases
In connection with the acquisition of certain real estate assets, Columbia Property Trust has assumed investments in development authority bonds and corresponding obligations under capital leases of land or buildings. The county development authority issued bonds to developers to finance the initial development of these projects, a portion of which was then leased back to the developer under a capital lease. This structure enabled the developer to receive property tax abatements over the concurrent terms of the development authority bonds and capital leases. The remaining property tax abatement benefits transferred to Columbia Property Trust upon assumption of the bonds and corresponding capital leases at acquisition. The development authority bonds and the obligations under the capital leases are both recorded at their net present values, which Columbia Property Trust believes approximates fair value. The related amounts of interest income and expense are recognized as earned in equal amounts and, accordingly, do not impact net income.
Accounts Payable, Accrued Expenses, and Accrued Capital Expenditures
Accounts payable, accrued expenses, and accrued capital expenditures primarily include payables related to property operations, capital projects, and interest rate swaps (when in a liability position). As of December 31, 2017 and 2016, accounts payable, accrued


F-13


expenses, and accrued capital expenditures includes approximately $54.7 million and $69.0 million in lease incentives related to a lease at the 222 East 41st Street Property.
Line of Credit and Notes Payable
Certain mortgage notes included in line of credit and notes payable in the accompanying consolidated balance sheets were assumed upon the acquisition of real properties. When debt is assumed, Columbia Property Trust records the loan at fair value. The fair value adjustment is amortized to interest expense over the term of the loan using the effective interest method.
As described in the Deferred"Deferred Financing CostsCosts" section above, line of credit and notes payable is presented on the accompanying consolidated balance sheet net of deferred financing costs related to term loans and notes payable of $3.0$2.1 million and $3.1$2.7 million as of December 31, 20172019 and December 31, 2016,2018, respectively.
Bonds Payable
In August 2016, Columbia Property Trust issuedOP has 2 series of bonds outstanding as of December 31, 2019 and 2018: $350 million of its 10-year unsecured 3.650% senior notes issued at 99.626% of their face value (the "2026 Bonds Payable"). In March 2015, Columbia Property Trust issued; and $350.0 million of its 10-year unsecured 4.150% senior notes issued at 99.859% of their face value (the "2025 Bonds Payable"). The discount on the 2026 Bonds Payable and the 2025 Bonds Payable is amortized to interest expense over the term of the bonds using the effective-interest method.
As described in the Deferred"Deferred Financing CostsCosts" section above, bonds payable are presented on the accompanying consolidated balance sheet net of deferred financing costs related to bonds payable of $4.8$3.6 million and $5.4$4.2 million as of December 31, 20172019 and December 31, 2016,2018, respectively.
F-21

Common Stock Repurchase Program
Columbia Property Trust's board of directors hasTrust is authorized the repurchasesto repurchase shares of its common stock, par value $0.01 per share, subject to certain limitations, as described in Note 8, Equity. Columbia Property Trust expects to acquire shares primarily through open market transactions, subject to market conditions and other factors.limitations. As of December 31, 2017, $194.82019, $166.5 million remains available for repurchases under the current stock repurchase program. See Note 8, Stockholders' Equity and Partner's Capital, for additional details. Common stock repurchases are charged against equity as incurred, and the repurchased shares are retired. See Note 8, Equity, for additional details.
Preferred Stock
Columbia Property Trust is authorized to issue up to 100.0 million shares of one or more classes or series of preferred stock with a par value of $0.01$0.01 per share. Columbia Property Trust's board of directors may determine the relative rights, preferences, and privileges of each class or series of preferred stock issued, which may be more beneficial than the rights, preferences, and privileges attributable to Columbia Property Trust's common stock. To date, Columbia Property Trust has not issued any shares of preferred stock.
Common Stock
The par value of Columbia Property Trust's issued and outstanding shares of common stock is classified as common stock, with the remainder allocated to additional paid-in capital.
Distributions
To maintain its status as a REIT, Columbia Property Trust is required by the Internal Revenue Code of 1986, as amended (the "Code"), to make distributions to stockholders each taxable year equal to at least 90% of its REIT taxable income, computed without regard to the dividends-paid deduction and by excluding net capital gains attributable to stockholders ("REIT taxable income"). To the extent that Columbia Property Trust satisfies the distribution requirement but distributes less than 100% of its REIT taxable income, Columbia Property Trust would be subject to federal and state corporate income tax on the undistributed income. Distributions to the stockholders are determined by the board of directors of Columbia Property Trust and are dependent upon a number of factors relating to Columbia Property Trust, including funds available for payment of distributions, financial condition, the timing of property acquisitions, capital expenditure requirements, and annual distribution requirements in order to maintain Columbia Property Trust's status as a REIT under the Code.
Noncontrolling Interests
Noncontrolling interests represent the equity interests of a consolidated joint venture that are not owned by Columbia Property Trust. Noncontrolling interests are adjusted for contributions, distributions, and earnings attributable to the noncontrolling interest holders of the consolidated joint venture. Earnings are allocated to joint venture partners using the hypothetical liquidation at book value method, based on the terms of the respective joint venture agreements, and are recorded as net income (loss) attributable to noncontrolling interests in the accompanying consolidated statements of operations. For 2019, all of Columbia Property Trust's noncontrolling interests relate to 101 Franklin Street, which was acquired on December 2, 2019. For additional information, see Note 3, Real Estate Transactions.
Interest Rate Swap Agreements
Columbia Property Trust enters into interest rate swap contracts to mitigate its interest rate risk on the related financial instruments. Columbia Property Trust does not enter into derivative or interest rate transactions for speculative purposes;purposes and currently does not have any derivatives that are not designated as hedges; however, certain of its derivatives may, at times, not qualify for hedge accounting treatment. Columbia Property Trust records the fair value of its interest rate swaps on its consolidated balance sheet either as prepaid expenses and other assets or as accounts payable, accrued expenses, and accrued capital expenditures. Changes in the fair value of the effective portion of interest rate swaps that are designated as cash


F-14


flow hedges are recorded as other comprehensive income while changes in the fair value of the ineffective portion of a hedge, if any, is recognized currently in earnings.(loss). Changes in the fair value of interest rate swaps that do not qualify for hedge accounting treatment are recorded as gain or loss on interest rate swaps. Amounts received or paid under interest rate swap agreements are recorded as interest expense for contracts that qualify for hedge accounting treatment and as loss on interest rate swaps for contracts
F-22

that do not qualify for hedge accounting treatment.
As of December 31, 2019, Columbia Property Trust has 2 interest rate swaps, with an aggregate notional amount of $450.0 million. The following tables provide additional information related to Columbia Property Trust's interest rate swaps as of December 31, 20172019 and 20162018 (in thousands):
  Estimated Fair Value as of
December 31,
Instrument TypeBalance Sheet Classification20192018
Derivatives Designated as Hedging Instruments:
Interest rate contractsPrepaid expenses and other assets$551  $2,344  
Interest rate contractsAccounts payable$1,652  $—  
    
Estimated Fair Value as of
December 31,
Instrument Type Balance Sheet Classification 2017 2016
Derivatives Designated as Hedging Instruments:      
Interest rate contracts Prepaid expenses and other assets $903
 $
Interest rate contracts Accounts payable $
 $(882)

As a result of the interest rate contract in the above table, Columbia Property Trust estimates recognizing a reduction in interest expense of approximately $0.9 million over the next 12 months.
Columbia Property Trust applied the provisions of ASC 820 in recording its interest rate swaps at fair value. The fair values of the interest rate swaps, classified under Level 2, were determined using a third-party proprietary model that is based on prevailing market data for contracts with matching durations, current and anticipated London Interbank Offered Rate ("LIBOR") information, and reasonable estimates about relevant future market conditions. Columbia Property Trust has determined that the fair value, as determined by the third party, is reasonable.
 Years Ended December 31,
 201920182017
Market value adjustment to interest rate swaps designated as hedging instruments and included in other comprehensive income (loss)$(3,445) $1,441  $1,786  
 Years Ended December 31,
 2017 2016 2015
Market value adjustment to interest rate swaps designated as hedging instruments and included in other comprehensive income$1,786
 $1,553
 $(1,570)
Loss on interest rate swap recognized through earnings$
 $
 $(1,110)

Revenue Recognition
The majority of Columbia Property Trust’s revenues are derived from leases and are reflected as lease revenues on the accompanying consolidated statements of operations. For more information about Columbia Property Trust's lease revenue streams see Note 10, Leases.
In July 2015,determining when to begin recognizing rental revenues, Columbia Property Trust paid $1.1 million to settleconsiders a number of factors, including the interest rate swap on a $450 million term loan, which is reflectednature of the physical improvements made in earnings. Duringconnection with the periods presented, there was no other hedge ineffectiveness required to be recognized into earnings on the interest rate swaps that qualified for hedge accounting treatment.
Revenue Recognition
All leases on real estate assets held bylease. When Columbia Property Trust owns the improvements for accounting purposes, revenue recognition generally begins once the improvements are classified as operating leases,substantially complete and the related base rental income is generally recognized on a straight-line basis over the termslessee has taken possession of the respective leases. Tenant reimbursements are recognized as revenue in the period that the related operating cost is incurred and are billed to tenants pursuant to the terms of the underlying leases. Rental income and tenant reimbursements collected in advance are recorded as deferred income in the accompanying consolidated balance sheets. Management fees earned byimproved space. When Columbia Property Trust does not own the improvements for services provided to certainaccounting purposes (the lessee is the owner), revenue recognition generally begins once the lessee takes possession of its unconsolidated joint ventures are recordedthe unimproved space; in these instances, the tenant allowance is accounted for as asset and property management fee income duringa lease incentive, which reduces rental revenues over the period inlease term. When evaluating which such services are provided. Lease termination fees are recorded as other property income and recognized on a straight-line basis from whenparty (lessee or lessor) owns the improvements for accounting purposes, Columbia Property Trust receives notificationconsiders a number of termination throughfactors, including, among other things: whether the datelease stipulates what the tenant has lostallowance may be used for; whether the rightlessee or lessor retains legal title to the improvements; the expected economic life of the improvements relative to the lease term; and who directs the spaceconstruction of the improvements. The determination of who owns the improvements for accounting purposes is subject to significant judgement and is not based on any one factor.
For information about Columbia Property Trust has satisfied all obligations under the related lease or lease termination agreement.
In conjunction with certain acquisitions, Columbia Property Trust has entered into master lease agreements with various sellers, whereby the sellers are obligated to pay rent pertaining to certain nonrevenue-producing spaces either at the time of, or subsequent to, the property acquisition. These master leases were established at the time of acquisition to mitigate the potential negative effects of lost rental revenues and expense reimbursement income. Columbia Property Trust records payments received under master lease agreements as a reduction of the basis of the underlying property rather than rental income. There were no proceeds received from master leases during 2017, 2016, or 2015.
Prior to disposition on January 31, 2017, Columbia Property Trust owned the Key Center Marriott, a full-service hotel, through a taxable REIT subsidiary. Revenues derived from the operations of the hotel include, but are not limited to, revenues from rental of rooms, food and beverage sales, telephone usage, andTrust's other service revenues. Revenue was recognized when rooms were occupied, when services performed, and when products were delivered.revenue streams, please see Note 11, Non-Lease Revenues.


F-15


Income Taxes
Columbia Property Trust has elected to be taxed as a REIT under the Code, as amended (the "Code") and has operated as such beginning with its taxable year ended December 31, 2003. To qualify as a REIT, Columbia Property Trust must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of its REIT taxable income, as defined by the Code, to its stockholders. As a REIT,To the extent that Columbia Property Trust generally is notsatisfies the distribution requirement but distributes less than 100% of its REIT taxable income, Columbia
F-23

Property Trust would be subject to federal and state corporate income tax on income it distributes to stockholders.the undistributed income. Generally, Columbia Property Trust's stockholder distributions typically exceed its taxable income due to the inclusion of noncash expenses, such as depreciation, in taxable income. As a result, Columbia Property Trust typically does not incur federal income taxes, other than as described in the following paragraph.paragraph, because its stockholder distributions typically exceed its taxable income due to noncash expenses such as depreciation. Columbia Property Trust is, however, subject to certain state and local taxes related to the operations of properties in certain locations, which have been provided for in the accompanying consolidated financial statements.
Columbia Property Trust TRS, LLC, Columbia KCP TRS, LLC, and Columbia Energy TRS, LLC (collectively, the "TRS Entities") are wholly owned subsidiaries of Columbia Property Trust and are organized as Delaware limited liability companies. The TRS Entities, among other things, provide tenant services that Columbia Property Trust, as a REIT, cannot otherwise provide. Columbia Property Trust has elected to treat the TRS Entities as taxable REIT subsidiaries. Columbia Property Trust may perform certain additional, noncustomary services for tenants of its buildings through the TRS Entities; however, any earnings related to such services are subject to federal and state income taxes. In addition, for Columbia Property Trust to continue to qualify as a REIT, Columbia Property Trust must limit its investments in taxable REIT subsidiaries to 25%20% of the value of the total assets. The TRS Entities' deferred tax assets and liabilities represent temporary differences between the financial reporting basis and the tax basis of assets and liabilities based on the enacted rates expected to be in effect when the temporary differences reverse. If applicable, Columbia Property Trust records interest and penalties related to uncertain tax positions as general and administrative expense in the accompanying consolidated statements of operations.
Segment Information
As of December 31, 2017,2019, Columbia Property Trust's reportable segments are determined based on the geographic markets in which it has significant investments. Columbia Property Trust considers geographic location when evaluating its portfolio composition, and in assessing the ongoing operations and performance of its properties (see Note 14, 15, Segment Information).
Reclassification
Certain prior period amounts may be reclassified to conformIn accordance with Accounting Standard Codification 360, Property, Plant, and Equipment ("ASC 360"), and in response to the current-period financial statement presentation. Within revenuesSecurities and Exchange Commission's Disclosure Update and Simplification release effective November 5, 2018, gains on sales of real estate assets have been moved to other income (expense) on the accompanying consolidated statements of operations management fees earned from unconsolidated joint ventures have been reclassified from other property income to a dedicated line item, asset and property management fee income, for all periods presented.
Recent Accounting Pronouncements
In August 2017, the Financial Accounting Standards Board (the "FASB") issued Accounting Standard Update 2017-12, Targeted Improvements to Accounting for Hedging Activities ("ASU 2017-12"). ASU 2017-12 aligns reporting requirements for hedging relationships with risk management activities and simplifies the application of hedge accounting. ASU 2017-12 eliminates the concept of recognizing periodic hedge ineffectiveness for cash flow hedges and allows for ongoing qualitative, rather than quantitative, testing of hedge effectiveness. ASU 2017-12 will be effective forEffective January 1, 2019, Columbia Property Trust on January 1, 2019, with early adoption permitted. Columbia Property Trust elected to early adopt ASU 2017-12 effective December 1, 2017. The adoption of ASU 2017-12 resulted in a simplified process to determine the ongoing effectiveness of its cash flow hedge with no material impact on its consolidated financial statements or other disclosures.
In February 2017, the FASB issuedadopted Accounting Standard Update 2017-05, Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Non-Financial Assets ("ASU 2017-05"), which will apply to the partial sale of non-financial assets, including real estate assets, to unconsolidated joint ventures. ASU 2017-05 will require Columbia Property Trust to measure its residual joint venture interest in the properties transferred to unconsolidated joint ventures at fair value as of the transaction date by recognizing a gain or loss on 100% of the asset transferred (i.e. to fully step-up the basis of the residual investment in the joint venture). Columbia Property Trust will adopt the new rule effective January 1, 2018 on a modified retrospective basis by recording a cumulative-effect adjustment to equity equal to the original gain or loss as of the respective transaction dates, adjusted to reflect the impact of depreciating the additional step-ups through January 1, 2018. The adoption of this standard will result in an increase to investment in unconsolidated joint ventures and equity by $357.8 million for the investments in the Market Square, 333 Market Street, and University Circle properties.


F-16


In January 2017, the FASB issued Accounting Standards Update 2017-01, Clarifying the Definition of a BusinessCodification 842, Leases ("ASU 2017-01"), which provides a more narrow definition of a business to be used in determining the accounting treatment of acquisitions. As a result, under the new standard, many acquisitions previously classified as business combinations will be treated as asset acquisitions. For asset acquisitions, unlike business combinations, transaction costs may be capitalized, and purchase price may be allocated on a relative fair-value basis. Columbia Property Trust elected to early adopt ASU 2017-01 as of October 1, 2017. As a result, transaction costs of $2.2 million were capitalized during the fourth quarter related to the acquisitions of 245-249 West 17th Street, 218 West 18th Street, and 149 Madison Avenue. See Note 3, Real Estate Transactions, for more information about these acquisitions.
In February 2016, the FASB issued Accounting Standards Update2016-02, Leases ("ASU 2016-02"ASC 842"), which amends the existing standards for lease accounting by requiring lessees to recognize most leases on their balance sheets and by making targeted changes to lessor accounting and reporting. The new standard will require lesseesrules with the following key changes:
Lessees are required to record a right-of-use asset and a lease liability for all leases, as defined, with a term of greater than 12 months, and to classify such leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee, or not. This classification will determine whether the lease expense is recognized based on anusing the effective interest method (finance leases) or on a straight-line basis over the term of the lease (operating leases). Leases with a term of 12 months or less will be accounted for using an approach that is similar to existing guidance for operating leases today. The new standard requires lessors
Lessors are required to account for leases using an approach that is substantially equivalentsimilar to existing guidance as applies tothe pre-existing rules for operating leases, sales-type leases, and direct financing leases, with a few targeted changes, including that: (i) lessors are no longer permitted to capitalize and amortize initial indirect costs incurred to obtain a lease, and (ii) provisions for uncollectible tenant receivables are reflected as a reduction to lease revenues, instead of as general and administrative expense.
In connection with transitioning to ASC 842, Columbia Property Trust elected to use certain practical expedients which impact Columbia Property Trust as follows:
Prospective implementation. In-place contracts retain their character as to whether they meet the definition of a lease or not; in-place leases retain their classification as an operating, leases. sales-type, or direct financing lease; and prior-period accounting and presentation is unchanged.
F-24

Rental income and tenant reimbursements for operating leases are combined in a single line on the statements of operations for all periods presented.
Leases with a term of 12 months or less are expensed as incurred, as provided for in a practical expedient elected by Columbia Property Trust.
See Note 10, Leases, for additional information.
Accounting Standard Update 2018-13, Fair Value Measurement: Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement ("ASU 2016-022018-13"), which will be effective for Columbia Property Trust on January 1, 2019 and supersedes previous leasing standards.2020, expands the disclosure requirements related to a change in fair value technique hierarchy. ASU 2018-13 is not expected to have a material impact on Columbia Property Trust is primarily a lessor and is monitoring additional clarification regarding the treatment of certain features of its lease agreements that might be classified as non-lease components. Columbia Property Trust is also a lessee, primarily on ground leases, and it is evaluating the impact of ASU 2016-02 on accounting for such leases.Trust's consolidated financial statements or disclosures.
In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"), which establishes a comprehensive model to account for revenues arising from contracts with customers. ASU 2014-09 applies to all contracts with customers, except those that are within the scope of other topics in the FASB's Accounting Standards Codification, such as real estate leases. ASU 2014-09 will require companies to perform a five-step analysis of transactions to determine when and how revenue is recognized. Columbia Property Trust expects the new standard to apply primarily to fees earned from managing properties owned by its unconsolidated joint ventures and certain parking agreements. Revenues for such services represented $6.7 million, $3.6 million, and $1.8 million, or 2.3%, 0.8%, and 0.3% of total revenues, for the years ended December 31, 2017, 2016, and 2015, respectively. Revenues derived from leases, which are excluded from ASU 2014-09 represented $281.0 million, $447.3 million, and $539.9 million, or 97.2%, 94.5%, and 95.4% of total revenues for the years ended December 31, 2017, 2016, and 2015, respectively. Given the structure of the asset and property management agreements currently in place with unconsolidated joint ventures and the parking agreements currently in place with existing tenants, Columbia Property Trust does not expect ASU 2014-09 to materially impact the timing or amount of revenue recognition; however, Columbia Property Trust will be required to provide more extensive disclosures about its revenue streams and contracts with customers. ASU 2014-09 was effective for Columbia Property Trust on January 1, 2018. Columbia Property Trust will use the modified retrospective approach of adoption, which will result in the recognition of a cumulative effect adjustment to equity, with no retrospective adjustments to prior periods.


3.  Real Estate Transactions
F-17


3.Real Estate Transactions
Acquisitions
During 2017, 2016,2019, 2018, and 2015,2017, Columbia Property Trust acquired the following properties:
PropertyLocationDatePercent Acquired
Purchase Price
(in thousands)(1)
2019
201 California StreetSan Francisco, CADecember 9, 2019100.0 %$238,900  
101 Franklin Street(2)
New York, NYDecember 2, 201992.5 %$205,500  
2018
Lindbergh Center – RetailAtlanta, GAOctober 24, 2018100.0 %$23,000  
799 BroadwayNew York, NYOctober 3, 201849.7 %$30,200  
(3)
2017
149 Madison AvenueNew York, NYNovember 28, 2017100.0 %$87,700  
1800 M StreetWashington, D.C.October 11, 201755.0 %$231,550  
(3)
249 West 17th Street & 218 West 18th StreetNew York, NYOctober 11, 2017100.0 %$514,100  
114 Fifth AvenueNew York, NYJuly 6, 201749.5 %$108,900  
(3)
(1)Exclusive of transaction costs and price adjustments. See purchase price allocation table below for a breakout of the net purchase price for wholly owned properties.
(2)Property is owned through a consolidated joint venture.
(3)These properties andare owned through unconsolidated joint ventures. Purchase price is for Columbia Property Trust's partial interests in properties:the properties.
F-25

Property Location Date Percent Acquired 
Purchase Price
(in thousands)
(1)
2017         
149 Madison Avenue New York, NY November 28, 2017 100.0% $87,700
 
1800 M Street Washington, D.C. October 11, 2017 55.0% $231,550
(2) 
245-249 West 17th Street & 218 West 18th Street New York, NY October 11, 2017 100.0% $514,100
 
114 Fifth Avenue New York, NY July 6, 2017 49.5% $108,900
(2) 
2015         
229 West 43rd Street New York NY August 4, 2015 100.0% $516,000
 
116 Huntington Avenue Boston, MA January 8, 2015 100.0% $152,000
 
315 Park Avenue South & 1881 Campus Commons New York, NY & Reston, VA January 7, 2015 100.0% $436,000
 
201 California Street
(1)
On December 9, 2019, Columbia Property Trust acquired 201 California Street, a 17-story, 252,000-square-foot office tower in San Francisco. As of the acquisition date, 201 California Street was 99% leased to 34 tenants, including First Republic Bank (13%), Dow Jones & Company, Inc. (12%), and Cooper, White & Cooper, LLP (12%). For the period from December 9, 2019 to December 31, 2019, Columbia Property Trust recognized revenues of $1.4 million and net income of $0.1 million from 201 California Street.
101 Franklin Street
On December 2, 2019, Columbia Property Trust acquired a 92.5% controlling financial interest in 101 Franklin Street (formerly 250 Church Street), a 16-story, 235,000-square-foot office building in Manhattan that will be fully redeveloped through a consolidated joint venture with an affiliate of Normandy (see Note 16, Subsequent Event). During 2019, Columbia Property Trust earned $37,000 from its investment in 101 Franklin Street.
Lindbergh Center – Retail
On October 24, 2018, Columbia Property Trust acquired the 147,000 square feet of ancillary retail and office space surrounding its existing property, Lindbergh Center, for a gross purchase price of $23.0 million. Lindbergh Center – Retail was sold in the Lindbergh Center disposition, as described below.
799 Broadway Joint Venture
On October 3, 2018, Columbia Property Trust formed a joint venture with an affiliate of Normandy (see Note 16, Subsequent Event) for the purpose of developing a 12-story, 182,000-square-foot office building at 799 Broadway in New York (the "799 Broadway Joint Venture"). Columbia Property Trust made an initial equity contribution of $30.2 million in the 799 Broadway Joint Venture for a 49.7% interest therein. At inception, the 799 Broadway Joint Venture acquired the property located at 799 Broadway for $145.5 million, exclusive of transaction costs and development costs, and borrowed $97.0 million under a construction loan with total capacity of $187.0 million.
Exclusive of transaction costs and price adjustments. See purchase price allocation table below for a breakout of the net purchase price for wholly-owned properties.
(2)
Purchase price is for our partial interests in the properties. These properties are owned through unconsolidated joint ventures. 
149 Madison Avenue
149 Madison Avenue is a 12-story, 127,000-square-foot office building, which was vacant at the time of acquisition. Columbia Property Trust acquired 149 Madison Avenue subject to a ground lease which expired in January 2018. Columbia Property Trust plans to redevelopis redeveloping this property. For the period from November 28, 2017 to December 31, 2017, Columbia Property Trust recognized $10,300 of revenues and net income of $9,200 from 149 Madison Avenue. All of the office space at 149 Madison Avenue is leased to WeWork.
1800 M Street Joint Venture
Columbia Property Trust entered a new joint venture partnership with Allianz Real Estate of America LLC ("Allianz"), which simultaneously acquired 1800 M Street, a 10-story, 581,000-square-foot office building in Washington, D.C., that is 94% leased, for a total of $421.0 million (the "1800 M Street Joint Venture"). Columbia Property Trust owns a 55% interest in the 1800 M Street Joint Venture, and Allianz owns the remaining 45%.
245-249249 West 17th Street & 218 West 18th Street
245-249249 West 17th Street is made up of two interconnected 12- and six-story towers, totaling 281,000 square feet of office and retail space, and 218 West 18th Street is a 12-story, 166,000-square-foot office building. As of the acquisition date, 245-249249 West 17th Street was 100% leased to four4 tenants, including Twitter, Inc. (76%) and Room & Board, Inc. (21%); and, as of the acquisition date, 218 West 18th Street was 100% leased to seven7 tenants, including Red Bull North America, Inc. (25%), Company 3 (18%), SY Partners (16%), and SAE (16%). For the period from October 11, 2017 to December 31, 2017, Columbia Property Trust recognized revenues of $5.9 million and a net income of $1.8 million from 245-249249 West 17th Street, and revenues of $3.0 million and net income of $0.8 million from 218 West 18th Street.
F-26

114 Fifth Avenue Joint Venture
Columbia Property Trust acquired a 49.5% equity interest in a joint venture that owns the 114 Fifth Avenue property from Allianz (the "114 Fifth Avenue Joint Venture"). 114 Fifth Avenue is a 19-story, 352,000-square-foot building located in Manhattan’sManhattan's Flatiron District that is 100% leased, and is unencumbered by debt. The 114 Fifth Avenue Joint Venture is owned by Columbia Property Trust (49.5%), Allianz (49.5%), and L&L Holding Company (1.0%). L&L Holding Company is the general partner and will continue to perform asset and property management services for the property.
229 West 43rd Street
On August 4, 2015, Columbia Property Trust acquired the 481,000-square-foot office portion of the 229 West 43rd Street, a 16-story, 732,000-square-foot building located in the Times Square sub-market of Manhattan in New York, New York, for $516.0 million, exclusive of transaction costs and purchase price adjustments. As of the acquisition date, the 229 West 43rd Street Building


F-18


was 98.0% leased to nine tenants, including Yahoo! (40%), Snapchat (13%), Collective, Inc. (12%), and MongoDB (10%). For the period from August 4, 2015 to December 31, 2015, Columbia Property Trust recognized revenues of $15.3 million and net income of $2.2 million from the 229 West 43rd Street. The net income includes acquisition expenses of $1.7 million.
116 Huntington Avenue
On January 8, 2015, Columbia Property Trust acquired 116 Huntington Avenue, a 271,000-square-foot office building in Boston, Massachusetts, for $152.0 million, inclusive of capital credits. As of the acquisition date, the 116 Huntington Avenue Building was 78.0% leased to 17 tenants, including American Tower (21%), GE Healthcare (13%), and Brigham and Women's (12%). For the period from January 8, 2015 to December 31, 2015, Columbia Property Trust recognized revenues of $11.3 million and a net loss of $0.7 million from the 116 Huntington Avenue. The net loss includes acquisition expenses of $0.3 million.
315 Park Avenue South Building & 1881 Campus Commons Building
On January 7, 2015, Columbia Property Trust acquired a portfolio of two assets, which included 315 Park Avenue South, a 327,000-square-foot office building in New York, New York, and 1881 Campus Commons, a 244,000-square-foot office building in Reston, Virginia. This portfolio was acquired for $436.0 million, exclusive of transaction costs and purchase price adjustments.
As of the acquisition date, the 315 Park Avenue South was 94.9% leased to nine tenants, including Credit Suisse (74%). For the period from January 7, 2015 to December 31, 2015, Columbia Property Trust recognized revenues of $25.1 million and a net loss of $6.6 million from the 315 Park Avenue South. The net loss includes acquisition expenses of $1.2 million.
As of the acquisition date, the 1881 Campus Commons was 78.0% leased to 15 tenants, including SOS International (15%) and Siemens (12%). For the period from January 7, 2015 to December 31, 2015, Columbia Property Trust recognized revenues of $5.8 million and a net loss of $1.3 million from the 1881 Campus Commons. The net loss includes acquisition expenses of $0.5 million. Columbia Property Trust sold 1881 Campus Commons on December 10, 2015, as described in the Dispositions section below.
Purchase Price Allocations for Consolidated Property Acquisitions:Acquisitions
201 California Street
101 Franklin
Street(1)
149 Madison Avenue249 West 17th Street218 West 18th Street
LocationSan Francisco, CANew York, NYNew York, NYNew York, NYNew York, NY
Date AcquiredDecember 9, 2019December 2, 2019November 28, 2017October 11, 2017October 11, 2017
Purchase Price:
Land$77,833  $57,145  $59,112  $113,149  $43,836  
Building and improvements157,513  149,500  28,989  194,109  126,957  
Intangible lease assets13,241  —  —  27,408  12,120  
Intangible lease origination costs5,785  —  —  13,062  4,168  
Intangible below market lease liability(8,064) —  —  (7,131) (11,757) 
Total purchase price$246,308  $206,645  $88,101  $340,597  $175,324  
  149 Madison Avenue 245-249 West 17th Street 218 West 18th Street 229 West 43rd Street 116 Huntington
Avenue
 315 Park Avenue
South
 1881 Campus Commons
Location New York, NY
 New York, NY
 New York, NY
 New York, NY
 Boston, MA
 New York, NY
 Reston, VA
Date Acquired November 28, 2017
 October 11, 2017
 October 11, 2017
 August 4, 2015
 January 8, 2015
 January 7, 2015
 January 7, 2015
Purchase Price:              
Land $59,112
 $113,149
 $43,836
 $207,233
 
 $119,633
 $7,179
Building and improve-ments 28,989
 194,109
 126,957
 265,952
 108,383
 232,598
 49,273
Intangible lease assets 
 27,408
 12,120
 27,039
 7,907
 16,912
 4,643
Intangible below market ground lease assets 
 
 
 
 30,244
 
 
Intangible lease origin- ation costs 
 13,062
 4,168
 10,059
 2,669
 4,148
 1,603
Intangible below market lease liability 
 (7,131) (11,757) 
 (1,878) (7,487) (97)
Total purchase price $88,101
 $340,597
 $175,324
 $510,283
 147,325
 $365,804
 $62,601
(1)Owned through a consolidated joint venture, in which Columbia Property Trust owns a 92.5% interest.
Note 2, Summary of Significant Accounting Policies, providesa discussion of the estimated useful life for each asset class.
Pro Forma Financial Information:Information
The following unaudited pro forma statements of operations presented for 2017, 2016,2019, 2018, and 2015,2017, have been prepared for Columbia Property Trust to give effect to the acquisitions of 245-249201 California Street and 101 Franklin Street as if the acquisitions had occurred on January 1, 2018; and 249 West 17th Street, 218 West 18th Street, and 149 Madison Avenue as if the acquisitions had occurred on January 1, 2016; and 315 Park Avenue South, 1881 Campus Commons, 116 Huntington Avenue,


F-19


and 229 West 43rd Street as if the acquisitions had occurred on January 1, 2014.2016. The following unaudited pro forma financial results for Columbia Property Trust have been prepared for informational purposes only and are not necessarily indicative of future results or of actual results that would have been achieved had these acquisitions been consummated as of January 1, 20162018 and January 1, 20142016 (in thousands):
201920182017
Revenues$304,756  $312,003  $319,064  
Net income attributable to common stockholders of Columbia Property Trust$17,600  $16,822  $183,318  
F-27

 2017 2016 2015
Revenues$319,064
 $511,306
 $582,699
Net income$183,318
 $93,537
 $46,363
Net income per share  basic
$1.51
 $0.76
 $0.37
Net income per share  diluted
$1.51
 $0.76
 $0.37
Dispositions
During 2017, 2016,2019, 2018, and 2015,2017, Columbia Property Trust sold the following properties and partial interest in properties:properties of unconsolidated joint ventures. Additional information for certain of the dispositions is provided below the table.
PropertyLocationDate% Sold
Sale Price(1)
(in thousands)
Gain on Sale
(in thousands)
2019
Lindbergh CenterAtlanta, GASeptember 26, 2019100.0 %$187,000  $—  
One & Three Glenlake ParkwayAtlanta, GAApril 15, 2019100.0 %$227,500  $42,030  
2018
222 East 41st StreetNew York, NYMay 29, 2018100.0 %$332,500  $—  
263 Shuman BoulevardChicago, ILApril 13, 2018100.0 %$49,000  $24,039  
University Circle &
333 Market Street Joint Ventures
San Francisco, CAFebruary 1, 201822.5 %$235,300  
(2)
$762  
2017
University Circle & 333 Market StreetSan Francisco, CAJuly 6, 201722.5 %$234,000  
(2)
$102,365  
Key Center Tower & MarriottCleveland, OHJanuary 31, 2017100.0 %$267,500  $9,466  
Houston PropertiesHouston, TXJanuary 6, 2017100.0 %$272,000  $63,688  
(1)Exclusive of transaction costs and price adjustments.
(2)Sales price is for the partial interests in the properties or joint ventures that were sold.
Lindbergh Center
On September 26, 2019, Columbia Property Trust closed on the sale of Lindbergh Center, including Lindbergh Center – Retail, for a gross sales price of $187.0 million, exclusive of transaction costs. Columbia Property Trust recognized an impairment loss of $23.4 million related to this property in the third quarter of 2019, as further described in Note 2, Summary of Significant Accounting Policies. $46.0 million of the proceeds from this transaction were used to pay down the Revolving Credit Facility, as described in Note 5, Line of Credit and Notes Payable.
One & Three Glenlake Parkway
On April 15, 2019, Columbia Property Trust closed on the sale of One & Three Glenlake Parkway in Atlanta, for a gross sale price of $227.5 million, exclusive of $33.6 million of adjustments for tenant improvement allowances and rent abatements funded at closing. The proceeds from this transaction were used to pay down the Revolving Credit Facility, as described in Note 5, Line of Credit and Notes Payable.
222 East 41st Street
On May 29, 2018, Columbia Property Trust closed on the sale of 222 East 41st Street in New York, for $332.5 million, exclusive of transaction costs. Columbia Property Trust recognized an impairment loss of $30.8 million related to this property in the second quarter of 2018, as further described in Note 2, Summary of Significant Accounting Policies. The proceeds from this transaction were used to fully repay the $180.0 million remaining balance on a $300 million bridge loan, as described in Note 5, Line of Credit and Notes Payable.
263 Shuman Boulevard
On April 13, 2018, Columbia Property Trust transferred 263 Shuman Boulevard to the lender in extinguishment of the loan principal of $49.0 million, accrued interest expense, and accrued property operating costs, which resulted in a gain on extinguishment of debt of $24.0 million in the second quarter of 2018.
F-28
Property Location Date % Sold 
Sales Price(1) 
(in thousands)
 
Gain (Loss) on Sale (rounded,
in thousands)
2017             
University Circle & 333 Market Street(2)
 San Francisco, CA July 6, 2017 22.5%
(3) 
 $234,000
(2)(3) 
 $102,400
 
Key Center Tower & Marriott(4)
 Cleveland, OH January 31, 2017 100.0%  $267,500
  $9,500
 
Houston Properties(5)
 Houston, TX January 6, 2017 100.0%  $272,000
  $63,700
 
2016             
SanTan Corporate Center Phoenix, AZ December 15, 2016 100.0%  $58,500
  $9,800
 
Sterling Commerce Dallas, TX November 30, 2016 100.0%  $51,000
  $12,500
 
9127 South Jamaica Street Denver, CO October 12, 2016 100.0%  $19,500
  $
(6) 
80 Park Plaza Newark, NJ September 30, 2016 100.0%  $174,500
  $21,600
 
9189, 9191 & 9193 South Jamaica Street Denver, CO September 22, 2016 100.0%  $122,000
  $27,200
 
800 North Frederick Suburban, MD July 8, 2016 100.0%  $48,000
  $2,100
 
100 East Pratt(7)
 Baltimore, MD March 31, 2016 100.0%  $187,000
  $(300) 
2015             
1881 Campus Commons(8)
 Reston, VA December 10, 2015 100.0%  $65,000
  $500
 
Market Square(9)
 Washington, D.C. October 28, 2015 49.0%  $291,600
(9) 
 $3,100
 
11 Property Sale(10)
 
Various(10)
 July 1, 2015 100.0%  $433,300
  $20,200
 
(1)
Exclusive of transaction costs and price adjustments.
(2)
Sales price is for the partial interests in the properties that were sold. Columbia Property Trust contributed the 333 Market Street building and the University Circle property to joint ventures, and simultaneously sold a 22.5% interest in those joint ventures for $234.0 million to Allianz, an unrelated third party (collectively, the "San Francisco Joint Ventures").
(3)
On February 1, 2018, Allianz acquired another 22.5% interest in each of the San Francisco Joint Ventures at an aggregate price of $235.3 million, thereby reducing Columbia Property Trust's equity interest in each joint venture to 55.0%. These proceeds were used to reduce the balance on the $300 Million Bridge Loan and the Revolving Credit Facility, as described in Note 5, Line of Credit and Notes Payable.
(4)
Key Center Tower & Marriott were sold in one transaction for $254.5 million of gross proceeds and a $13.0 million, 10-year accruing note receivable from the principal of the buyer. As a result, Columbia Property Trust has applied the installment method to account for this transaction, and deferred $13.0 million of the total $22.5 million gain on sale. The Key Center Tower and Key Center Marriott generated net income of $14.5 million and $12.1 million for the years ended December 31, 2016 and 2015, respectively; and a net loss of $1.9 million for the first 31 days of 2017, excluding the gain on sale.
(5)
5 Houston Center, Energy Center I, and 515 Post Oak were sold in one transaction. These properties generated net income of $11.1 million and $12.9 million for the years ended December 31, 2016 and 2015, respectively; and a net loss of $14.9 thousand for the first six days of 2017, excluding the gain on sale.
(6)
Columbia Property Trust recorded a de minimus loss on the sale of 9127 South Jamaica Street.
(7)
The net sale proceeds of $159.4 million from 100 East Pratt were used to repay the $119.0 million remaining on the 2015 Bridge Loan on April 1, 2016.


F-20


University Circle & 333 Market Street
On July 6, 2017, Columbia Property Trust contributed 333 Market Street and the University Circle to joint ventures, and simultaneously sold a 22.5% interest in those joint ventures for $234.0 million to Allianz, an unrelated third party (collectively, the "San Francisco Joint Ventures").
On February 1, 2018, as agreed at the time of the initial San Francisco Joint Ventures formation, Allianz acquired another 22.5% interest in each of the San Francisco Joint Ventures at an aggregate price of $235.3 million, thereby reducing Columbia Property Trust's equity interest in each joint venture to 55.0%. These proceeds were used to reduce the balance on a $300 million bridge loan and the Revolving Credit Facility, as described in Note 5, Line of Credit and Notes Payable.
Key Center Tower & Marriott
Key Center Tower & Marriott were sold in one transaction for $254.5 million of gross proceeds at closing and a $13.0 million, 10-year accruing note receivable from the principal of the buyer. As a result, Columbia Property Trust has applied the installment method to account for this transaction, and deferred $13.0 million of the total $22.5 million gain on sale.
Houston Property Sale
5 Houston Center, Energy Center I, and 515 Post Oak were sold in one transaction for $272.0 million of gross proceeds, which resulted in a $63.7 million gain on sale.

(8)
The net proceeds from the sale of 1881 Campus Commons were used to reduce the outstanding balance of the 2015 Bridge Loan.
(9)
Sale price is for our partial interest in the property. On October 28, 2015, Columbia Property Trust transferred the Market Square properties, valued at $595.0 million and subject to a $325.0 million mortgage note, to a joint venture and sold a 49% interest in that joint venture to Blackstone Property Partners for net proceeds of approximately $120.0 million. Columbia Property Trust retains a 51% interest in the Market Square Joint Venture. See Note 4, Unconsolidated Joint Ventures, for additional information.
(10)
Columbia Property Trust closed on the sale of 11 properties on July 1, 2015 (the "11 Property Sale"). The 11 Property Sale included 170 and 180 Park Avenue in Northern New Jersey; 1580 West Nursery Road in Baltimore; Acxiom, Highland Landmark III, The Corridors III, 215 Diehl Road, 544 Lakeview, and Bannockburn Lake III in Chicago; and Robbins Road and 550 King Street in Boston. The proceeds for 10 of the properties were available on July 1, 2015, and the remaining proceeds were available on August 3, 2015. For the period from January 1, 2015 through July 1, 2015, the aggregate net income, excluding the gain on sale, for the properties included in the 11 Property Sale was $6.5 million; and for the year ended December 31, 2015, the net income for the properties included in the 11 Property Sale was $3.0 million, excluding the gain on sale.
4. Unconsolidated Joint Ventures
As of December 31, 20172019 and December 31, 2016,2018, Columbia Property TrustOP owns interests in the following properties through joint ventures, which are accounted for using the equity method of accounting:
Geographic MarketOwnership Interest
Carrying Value of Investment(1)
Joint VentureProperty NameDecember 31, 2019December 31, 2018
Market Square Joint VentureMarket SquareWashington, D.C.51.0 %$135,557  $134,250  
University Circle Joint VentureUniversity CircleSan Francisco55.0 %283,633  292,951  
333 Market Street Joint Venture333 Market StreetSan Francisco55.0 %269,638  273,783  
114 Fifth Avenue Joint Venture114 Fifth AvenueNew York49.5 %87,750  99,283  
1800 M Street Joint Venture1800 M StreetWashington, D.C.55.0 %233,196  237,333  
799 Broadway Joint Venture(2)
799 BroadwayNew York49.7 %44,686  
(4)
33,753  
$1,054,460  $1,071,353  
         Carrying Value of Investment
Joint Venture(1)
 Property Name Geographic Market Ownership Interest December 31, 2017 December 31, 2016
Market Square Joint Venture Market Square Washington, D.C. 51.0%  $128,411
 $127,346
University Circle Joint Venture University Circle San Francisco 77.5%
(2) 
 173,798
 
333 Market Street Joint Venture 333 Market Street San Francisco 77.5%
(2) 
 288,236
 
114 Fifth Avenue Joint Venture 114 Fifth Avenue New York 49.5%  110,311
 
1800 M Street Joint Venture 1800 M Street Washington, D.C. 55.0%  242,486
 
         $943,242
 $127,346
(1)Includes basis differences. Columbia Property Trust's investments in unconsolidated joint ventures were greater than the historical costs recorded at the underlying joint venture level by $279.2 million and $282.0 million as of December 31, 2019 and December 31, 2018, respectively. Such basis differences result from the timing of each partner's joint venture interest acquisition; and formation costs incurred by Columbia Property Trust. Basis differences are amortized to income (loss) from unconsolidated joint ventures over the lives of the underlying assets or liabilities.
(1)
(2)Columbia Property Trust capitalized interest of $1.3 million and $0.2 million on its investment in the 799 Broadway Joint Venture in 2019 and 2018, respectively.
See Note 3, Real Estate Transactions, for a description of the formation of these joint ventures.
(2)
On February 1, 2018, Allianz acquired from Columbia Property Trust an additional 22.5% interest in each of the University Circle Joint Venture and the 333 Market Street Joint Venture, thereby reducing Columbia Property Trust's equity interest in each joint venture to 55.0%.
Columbia Property Trust has determined that eachnone of theits unconsolidated joint ventures do not qualify asare variable interest entities. However, Columbia Property Trust and its unconsolidated joint venture partners have substantive participation rights in the joint ventures, including management selection and termination, and the approval of operating and capital decisions. As such, Columbia Property Trust uses the equity method of accounting to record its investment in these joint ventures. Under the equity method, the investment in the joint ventures is recorded at cost and adjusted for cash contributions and distributions, and allocations of income or loss.
F-29

Columbia Property Trust evaluates the recoverability of its investmentinvestments in unconsolidated joint ventures in accordance with accounting standards for equity investments by first reviewing the investment for any indicators of impairment. If indicators are present, Columbia Property Trust estimates the fair value of the investment. If the carrying value of the investment is greater than the estimated fair value, management makes an assessment of whether the impairment is "other-than-temporary." In making this assessment, management considers the following: (1) the length of time and the extent to which fair value has been less than cost, and (2) Columbia Property Trust's intent and ability to retain its interest long enough for a recovery in market value. Based on the assessment as described above, Columbia Property Trust has determined that none of its investments in joint ventures are other-than-temporarily impaired as of December 31, 2017.2019.
Mortgage Debt and Related Guaranty
The Market Square Joint Venture is the only joint venture with mortgage debt. As of December 31, 2017 and December 31, 2016, the outstanding balance on the interest-only Market Square mortgage note is $325.0 million, bearing interest at 5.07%. The Market Square mortgage note matures on July 1, 2023. Columbia Property Trust guarantees a portion of the Market Square mortgage note, the amount of which has been reduced to $11.2 million as of December 31, 2017 from $16.1 million as of December 31, 2016, as a result of leasing at the property. The amount of the guaranty will continue to be reduced as space is leased.


F-21


Condensed Combined Financial Information
Summarized balance sheet information for each of the unconsolidated joint ventures is as follows (in thousands):
Total AssetsTotal Debt
Total Equity(1)
December 31, 2019December 31, 2018December 31, 2019December 31, 2018December 31, 2019December 31, 2018
Market Square Joint Venture$582,747  $582,176  $324,815  
(2)
$324,762  $241,719  $241,581  
University Circle Joint Venture216,546  224,746  —  —  212,656  219,390  
333 Market Street Joint Venture367,652  375,884  —  —  352,385  360,915  
114 Fifth Avenue Joint Venture485,442  377,970  —  —  127,554  149,243  
1800 M Street Joint Venture437,439  447,585  —  —  421,588  429,016  
799 Broadway Joint Venture201,210  168,390  109,735  
(3)
95,630  85,316  67,189  
$2,291,036  $2,176,751  $434,550  $420,392  $1,441,218  $1,467,334  
(1)Excludes basis differences (see footnote (1) to the Carrying Value of Investment table above).
(2)The Market Square Joint Venture has a mortgage note with an outstanding balance of $325.0 million as of December 31, 2019 and December 31, 2018. The Market Square mortgage note bears interest at 5.07% and matures on July 1, 2023.
(3)Reflects $113.2 million outstanding, net of $3.5 million of net unamortized deferred financing costs, on the 799 Broadway construction loan. The 799 Broadway construction loan is being used to finance a portion of the 799 Broadway development project, has total capacity of $187.0 million, and bears interest at LIBOR, capped at 4.00%, plus a spread of 425 basis points (the "Construction Loan"). A portion of the monthly interest payments accrue into the balance of the loan. The Construction Loan matures on October 9, 2021, with 2 one-year extension options. For a discussion of Columbia Property Trust's equity guaranty related to the Construction Loan, see Note 7, Commitments and Contingencies.
F-30

  Total Assets Total Debt 
Total Equity(1)
  December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 
December 31,
2017
 December 31, 2016
Market Square Joint Venture $590,115
 $587,344
 $324,708
 $324,656
 $244,506
 $242,802
University Circle Joint Venture 227,368
 
 
 
 221,154
 
333 Market Street Joint Venture 385,297
 
 
 
 368,994
 
114 Fifth Avenue Joint Venture 392,486
 
 
 
 170,525
 
1800 M Street Joint Venture 458,964
 
 
 
 438,227
 
  $2,054,230
 $587,344
 $324,708
 $324,656
 $1,443,406
 $242,802
There is an aggregate basis difference of $32.0 million, which represents the differences between the historical costs recorded at the joint venture level, and Columbia Property Trust's investment in the joint ventures and results from differences in the timing of each partner's interest acquisition and formation costs incurred by Columbia Property Trust. The basis difference is being amortized to income (loss) from unconsolidated joint ventures over the lives of the related assets or liabilities.
Summarized income statement information for the unconsolidated joint ventures for the years ended December 31, 2017, 20162019, 2018, and 20152017 is as follows (in thousands):
Total RevenuesNet Income (Loss)
Columbia Property Trust's Share of Net Income (Loss)(1)
201920182017201920182017201920182017
Market Square Joint Venture$47,737  $44,815  $41,749  $(11,515) $(12,304) $(15,192) $(5,873) $(6,275) $(7,747) 
University Circle Joint Venture44,427  43,581  19,386  24,251  23,776  9,826  13,338  13,478  7,561  
333 Market Street Joint Venture28,170  27,006  12,971  14,929  14,620  6,948  8,211  8,312  5,331  
114 Fifth Avenue Joint Venture42,921  41,169  20,133  (10,674) (10,256) (4,885) (5,283) (5,077) (2,820) 
1800 M Street Joint Venture38,377  37,486  8,005  4,887  4,239  619  2,688  2,332  326  
799 Broadway Joint Venture—  —  —  (882) (132) —  (439) (66) —  
$201,632  $194,057  $102,244  $20,996  $19,943  $(2,684) $12,642  $12,704  $2,651  
  Total Revenues Net Income (Loss) Columbia Property Trust's Share of Net Income (Loss)
  2017 2016 2015 2017 2016 2015 2017 2016 2015
Market Square Joint Venture $41,749
 $41,230
 $7,962
 $(15,192) $(14,825) $(2,239) $(7,747) $(7,561) $(1,142)
University Circle Joint Venture 19,386
 
 
 9,826
 
 
 7,561
 
 
333 Market Street Joint Venture 12,971
 
 
 6,948
 
 
 5,331
 
 
114 Fifth Avenue Joint Venture 20,133
 
 
 (4,885) 
 
 (2,820) 
 
1800 M Street Joint Venture 8,005
 
 
 619
 
 
 326
 
 
  $102,244
 $41,230
 $7,962
 $(2,684) $(14,825) $(2,239) $2,651
 $(7,561) $(1,142)
(1)Excludes amortization of basis differences, as described in footnote (1) to the carrying value of investment table above, which are recorded as income (loss) from unconsolidated joint ventures in the accompanying consolidated statements of operations.
PropertyAsset and AssetProperty Management Fees
Columbia Property Trust provides property and asset management services to the Market Square Joint Venture, the University Circle Joint Venture, the 333 Market Street Joint Venture, and the 1800 M Street Joint Venture. Under these agreements, Columbia Property Trust oversees the day-to-day operations of these joint ventures and their properties, including property management, property accounting, and other administrative services. During the years ended December 31, 2017, 2016,2019, 2018, and 2015,2017, Columbia Property Trust earned the following fees from these unconsolidated joint ventures:ventures (in thousands):
 2017 2016 2015201920182017
Market Square Joint Venture $1,998
 $2,122
 $213
Market Square Joint Venture$2,256  $2,156  $1,998  
University Circle Joint Venture 1,000
 
 
University Circle Joint Venture2,313  2,283  1,000  
333 Market Street Joint Venture 367
 
 
333 Market Street Joint Venture819  784  367  
1800 M Street Joint Venture 417
 
 
1800 M Street Joint Venture2,156  2,161  417  
 $3,782
 $2,122
 $213
$7,544  $7,384  $3,782  
Columbia Property Trust also received reimbursements of property operating costs of $2.0$4.3 million, $4.2 million, and $0.5$2.0 million for the years ended December 31, 2019, 2018, and 2017, and 2016, respectively, and none for the year ended December 31, 2015, which are included in other property income revenues in the accompanying consolidated statements of operations. Property management fees of $0.4$0.6 million and $0.1$0.7 million, respectively, were due to Columbia Property Trust from the joint ventures and are included in prepaid expenses and other assets on the accompanying consolidated balance sheets as of December 31, 20172019 and December 31, 2016,2018, respectively.



F-31
F-22


5. Line of Credit and Notes Payable
5.Line of Credit and Notes Payable
Columbia OP is the borrower on all of Columbia Property Trust's outstanding debt. As of December 31, 20172019 and 2016,2018, Columbia Property Trust had the following line of credit and notes payable indebtedness outstanding (excluding bonds payable; see Note 6, Bonds Payable) in thousands:
Rate as of
December 31, 2019
Term Debt or Interest OnlyOutstanding Balance as of
December 31,
FacilityMaturity20192018
Revolving Credit FacilityLIBOR + 90 bp  
(1)
Interest only  January 31, 2023$334,000  $482,000  
$300 Million Term LoanLIBOR + 100 bp  
(2)
Interest onlyJanuary 31, 2024300,000  —  
$150 Million Term LoanLIBOR + 110 bp  
(3)
Interest onlyJuly 29, 2022150,000  150,000  
Less: Deferred financing costs related to term loans(2,084) (2,692) 
Total indebtedness$781,916  $629,308  
  Rate as of
December 31, 2017
 Term Debt or Interest Only   
Outstanding Balance as of
December 31,
Facility   Maturity 2017 2016
$300 Million Term Loan LIBOR + 110 bp
(1) 
 Interest only 7/31/2020 $300,000
 $300,000
$300 Million Bridge Loan LIBOR + 110 bp
(2) 
 Interest only 11/27/2018 300,000
 
Revolving Credit Facility LIBOR + 100 bp
(3) 
 Interest only 7/31/2019 152,000
 
$150 Million Term Loan LIBOR + 110 bp
(4) 
 Interest only 7/29/2022 150,000
 150,000
263 Shuman Boulevard Building mortgage note(5)
 10.55%  Interest only 7/1/2017 49,000
 49,000
One Glenlake Building mortgage note 5.80%  Term debt 12/10/2018 23,176
 26,315
650 California Street Building mortgage note 3.60%  Term debt 7/1/2019 
 126,287
221 Main Building mortgage note 3.95%  Interest only 5/10/2017 
 73,000
Less: Deferred financing costs related to term loans, bridge loan, and mortgage notes payable        (2,991) (3,136)
Total indebtedness        $971,185
 $721,466
(1)
The $300 Million Term Loan bears interest, at Columbia Property Trust's option, at LIBOR, plus an applicable margin ranging from 0.90% to 1.75% for LIBOR loans, or an alternate base rate, plus an applicable margin ranging from 0.00% to 0.75% for base-rate loans, based on Columbia Property Trust's applicable credit rating.
(2)
The $300 Million Bridge Loan bears interest, at Columbia Property Trust's option, at LIBOR, plus an applicable margin ranging from 0.90% to 1.75% for LIBOR loans, or an alternate base rate, plus an applicable margin ranging from 0.00% to 0.75% for base-rate loans, based on Columbia Property Trust's applicable credit rating.
(3)
Borrowings under the Revolving Credit Facility, as described below, bear interest at the option of Columbia Property Trust at LIBOR, plus an applicable margin ranging from 0.875% to 1.55% for LIBOR-based borrowings, or an alternate base rate, plus an applicable margin ranging from 0.00% to 0.55% for base-rate borrowings, based on Columbia Property Trust's applicable credit rating.
(4)
Columbia Property Trust is party to an interest rate swap agreement with a notional amount of $150.0 million, which effectively fixes its interest rate on the $150 Million Term Loan, as further described below, at 3.07% and terminates on July 29, 2022. This interest rate swap agreement qualifies for hedge accounting treatment; therefore, changes in the fair value are recorded as a market value adjustment to interest rate swap in the accompanying consolidated statement of other comprehensive income.
(5)
The OfficeMax lease at 263 Shuman Boulevard expired in May 2017, and the 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 third and fourth quarters of 2017, Columbia Property Trust accrued related interest expense of $2.6 million at the default rate of 10.55%, and property operating expenses of $0.9 million, primarily related to property taxes and repairs and maintenance.
$300 Million Bridge Loan
On November 27, 2017, Columbia Property Trust entered into a $300.0 million, one-year, unsecured loan with a syndicate(1)As of banks led by JPMorgan Chase Bank, N.A. (the "$300 Million Bridge Loan"). The proceeds from the $300 Million Bridge were used to repayDecember 31, 2019, borrowings under the Revolving Credit Facility, as described below, bear interest at the option of Columbia Property Trust at an alternate base rate, plus an applicable margin ranging from 0.00% to 0.45% for base-rate borrowings, or at LIBOR, as defined in the credit agreement, plus an applicable margin ranging from 0.775% to 1.45% for LIBOR-based borrowings, based on Columbia Property Trust's applicable credit rating.
(2)Columbia Property Trust is party to an interest rate swap agreement with a notional amount of $300.0 million, which were usedeffectively fixes its interest rate on the $300 Million Term Loan, as further described below, at 2.55% and terminates on August 13, 2024. This interest rate swap agreement qualifies for hedge accounting treatment; therefore, changes in the fair value are recorded as a market value adjustment to fund real estate acquisitions. interest rate swap in the accompanying consolidated statement of other comprehensive income.
(3)Columbia Property Trust is party to an interest rate swap agreement with a notional amount of $150.0 million, which effectively fixes its interest rate on the $150 Million Term Loan, as further described below, at 3.07% and terminates on July 29, 2022. 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 the accompanying consolidated statement of other comprehensive income.
Term Loan and Line of Credit Amendment and Restatement
On December 7, 2018, Columbia Property Trust amended and restated its $500.0 million revolving credit facility and $300.0 million unsecured term loan (together, the "Credit Agreement"). The Credit Agreement provides for (i) a $650.0 million unsecured revolving credit facility (the "Revolving Credit Facility"), with an initial term ending January 31, 2023 and 2 six-month extension options (for a total possible extension option of one year to January 31, 2024), subject to the paying of certain fees and the satisfaction of certain other conditions, and (ii) a 12-month, delayed-draw, $300.0 million unsecured term loan, with a term ending January 31, 2024 (the "$300 Million Term Loan"). The $300 Million Term Loan was fully drawn during 2019.
At Columbia Property Trust's option, borrowings under the $300 Million Bridge LoanCredit Agreement bear interest at either (i) anthe alternate base rate plus an applicable margin based on five stated pricing levels ranging from 0.00% to 0.75%0.45% for the Revolving Credit Facility and 0.00% to 0.65% for the $300 Million Term Loan, or (ii) the LIBOR rate, as defined in the credit agreement, plus an applicable margin based on five stated pricing levels ranging from 0.90%0.775% to 1.75%,1.45% for the Revolving Credit Facility and 0.85% to 1.65% for the $300 Million Term Loan, in each case based on Columbia Property Trust's credit rating. TheAs described above, the interest rate on the $300 Million Bridge Loan provides for one six-month extension option to May 24, 2019, subject to certain fees and the satisfaction of certain other conditions.
Term Loan Amendment
On July 25, 2017, Columbia Property Trust amended the terms of its $150 Million Term Loan to reduce the current interest rate from 3.52% to 3.07% per annum. The amendment reduced the interest rate from LIBOR, plus an applicable margin ranging from 1.40% to 2.35%, to LIBOR, plus an applicable margin ranging from 0.90% to 1.75%. The maturity date, debt covenants, and other terms of the $150 Million Term Loan are unchanged. The interest rate ishas been effectively fixed at 2.55% with an interest rate swap agreement, which is designated as a cash flow hedge.


F-23


agreement.
Debt Covenants
TheAs of December 31, 2019, the $300 Million Term Loan, the $300 Million Bridge Loan, the $150 Million Term Loan, and the Revolving Credit Facility (collectively, the "Debt Facilities") contain representations and warranties, financial and other affirmative and
F-32

negative covenants, events of defaults, and remedies typical for these types of facilities. The financial covenants as defined in the Debt Facilities:
(a)limit the ratio of secured debt to total asset value, as defined therein, to 40% or less;
(b)require the fixed charge coverage ratio, as defined therein, to be at least 1.50:1.00;
(c)limit the ratio of debt to total asset value, as defined therein, to 60% or less;
(d)require the ratio of unencumbered adjusted net operating income, as defined therein, to unsecured interest expense, as defined therein, to be at least 1.75:1.00;
(e)require the ratio of unencumbered asset value, as defined therein, to total unsecured debt, as defined therein, to be at least 1.66:1.00; and
(f)require maintenance of certain minimum tangible net worth balances.
limit the ratio of secured debt to total asset value to 40% or less;
require the fixed charge coverage ratio to be at least 1.50:1.00;
limit the ratio of debt to total asset value to 60% or less, or 65% or less following a material transaction;
require the unencumbered interest coverage ratio to be at least 1.75:1.00; and
limit the unencumbered leverage ratio to 60% or less, or 65% or less following a material transaction.
As of December 31, 2017,2019, Columbia Property Trust believes it was in compliance with the restrictive financial covenants on its Debt Facilities and notes payable obligations.
Fair Value of Debt
The estimated fair value of Columbia Property Trust's consolidated line of credit and notes payable as of December 31, 20172019 and 2016,2018, was approximately $975.3$784.1 million and $728.5$632.1 million,, respectively. The related carrying value of the line of credit and notes payable as of December 31, 20172019 and 2016,2018, was $974.2$784.0 million and $724.6$632.0 million, respectively. Columbia Property Trust estimated the fair value of its line of creditRevolving Credit Facility and term loans by obtaining estimates for similar facilities from multiple market participants as of the respective reporting dates. Therefore, the fair values determined are considered to be based on observable market data for similar instruments (Level 2). The fair values of all other debt instruments were estimated based on discounted cash flow analyses using the current incremental borrowing rates for similar types of borrowing arrangements as of the respective reporting dates (Level 3).
Interest Paid and Capitalized
As of December 31, 20172019 and 2016,2018, Columbia Property Trust's weighted-average interest rate on its consolidated line of credit and notes payable was approximately 3.16%2.63% and 3.09%3.26%, respectively. Columbia Property Trust made interest payments of approximately $17.9 million, $22.1 million, and $21.5 million $27.8during 2019, 2018, and 2017, respectively.
Columbia Property Trust capitalizes interest on development, redevelopment, and improvement projects owned directly and through joint ventures, using the weighted-average interest rate of its consolidated borrowings for the period. During 2019, 2018, and 2017, Columbia Property Trust capitalized interest of $5.1 million, $4.0 million, and $54.0 million during 2017, 2016, and 2015, respectively, of which approximately $0.7 million, $0.3 million, and $0.6 millionrespectively. For 2019, the weighted average interest rate on Columbia Property Trust's outstanding borrowings was capitalized during 2017, 2016, and 2015, respectively.3.55%.
Debt Repayments and MaturitiesExtinguishment
There were no debt repayments in 2019. During 2017 and 20162018 Columbia Property Trust made the following debt repayments:
On August 17, 2017,December 7, 2018, concurrent with closing on the Credit Agreement, Columbia Property Trust repaid the $124.8$300.0 million remaining balance ofon the 650 California Street building mortgage note,$300 Million Term Loan, which, was originally scheduledas described above, includes a delayed-draw feature, allowing up to mature on July 1, 2019.12 months to fully draw the term loan.
On October 10, 2018, Columbia Property Trust repaid the $20.7 million outstanding balance on the One Glenlake mortgage note two months prior to its original maturity date.
On April 13, 2018, Columbia Property Trust transferred 263 Shuman Boulevard to the lender in extinguishment of the $49.0 million loan principal, accrued interest expense, and accrued property operating expenses, which resulted in a gain on extinguishment of debt of $24.0 million in the second quarter of 2018.
On February 2, 2018, Columbia Property Trust repaid $120.0 million of the outstanding balance on a $300.0 million bridge loan, using a portion of the proceeds from the sale of an interest in the San Francisco Joint Ventures, as described in Note 3, Real Estate Transactions. On May 30, 2018, Columbia Property Trust repaid the remaining $180.0 million outstanding balance on the bridge loan, using a portion of the proceeds from the sale of 222 East 41st Street, as described in Note 3, Real Estate Transactions. As a result, Columbia Property Trust has recognized a loss on early extinguishment of debt of $0.3 million related to unamortized deferred financing costs.
On March 10, 2017, Columbia Property Trust repaid the $73.0 million balance of the 221 Main Street building mortgage note, which was originally scheduled to mature on May 10, 2017. Columbia Property Trust recognized a loss on early extinguishment of debt of $45,000 related to unamortized deferred financing costs.
On October 3, 2016, a portion of the proceeds from the sale of the 80 Park Plaza Property was used to repay the $99.0 million remaining outstanding balance on the Revolving Credit Facility.
On June 30, 2016, Columbia Property Trust used borrowings on the Revolving Credit Facility to repay the $39.0 million SanTan Corporate Center mortgage notes, which were scheduled to mature on October 11, 2016. Columbia Property Trust recognized a loss on early extinguishment of debt of $10,000 related to unamortized deferred financing costs.
On April 1, 2016, Columbia Property Trust repaid the $119.0 million remaining on the 2015 Bridge Loan, which was used to finance a portion of the 229 West 43rd Street Building acquisition in August of 2015. The 2015 Bridge Loan was scheduled to mature on August 4, 2016. Columbia Property Trust recognized a loss on early extinguishment of debt of $82,000 related to unamortized deferred financing costs.


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The following table summarizes the aggregate maturities of Columbia Property Trust's line of credit and notes payable as of December 31, 20172019 (in thousands):
2020$—  
2021—  
2022150,000  
2023334,000  
2024300,000  
Thereafter—  
       Total$784,000  

6. Bonds Payable
2018$323,176
2019152,000
2020300,000
2021
2022150,000
Thereafter
       Total(1)
$925,176
(1)
The $49.0 million 263 Shuman mortgage note is excluded from this table. The 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.
6.Bonds Payable
On August 12, 2016, Columbia Property Trust OP issuedhas 2 series of bonds outstanding as of December 31, 2019 and 2018: $350 million of 10-year, unsecured 3.650% senior notes whichissued at 99.626% of their face value (the "2026 Bonds Payable"); and $350.0 million of 10-year, unsecured 4.150% senior notes issued at 99.859% of their face value (the "2025 Bonds Payable"). Both series of bonds are guaranteed by Columbia Property Trust at 99.626%and require semi-annual interest payments. Upon issuance, a portion of its face value (the "2026 Bonds Payable"), pursuant to a shelf registration statement. Columbia Property Trust OP received net proceeds from the 2026 Bonds Payable of $346.4 million, which werewas used to redeem $250.0 million of seven-year, unsecured 5.875% senior notesbonds payable, due in April 2018. During the years ended December 31, 2019 and 2018, (the "2018 Bonds Payable"). The 2026 Bonds Payable require semi-annualColumbia Property Trust made interest payments in February and August basedof $27.3 million on a contractual annual interest rate of 3.650%. In the accompanying consolidated balance sheets, the 2026 Bonds Payable are shown net of the initial issuance discount of approximately $1.3 million, which will be amortized to interest expense over the term of the 2026 Bonds Payable using the effective interest method.its bonds payable. The principal amount of the 2026 Bonds Payable is due and payable on the maturity date, August 15, 2026.
In March 2015, Columbia Property Trust OP issued $350.0 million of 10-year, unsecured 4.150% senior notes, which are guaranteed by Columbia Property Trust, at 99.859% of their face value (the "2025 Bonds Payable"), pursuant to a shelf registration statement. Columbia Property Trust OP received proceeds from2026, and the 2025 Bonds Payable, net of fees, of $347.2 million. The 2025 Bonds Payable require semi-annual interest payments in April and October based on a contractual annual interest rate of 4.150%. In the accompanying consolidated balance sheets, the 2025 Bonds Payable are shown net of the initial issuance discount of approximately $0.5 million, which will be amortized to interest expense over the term of the 2025 Bonds Payable using the effective interest method. The principal amount of the 2025 Bonds Payable is due and payable on the maturity date, April 1, 2025.
During the year ended December 31, 2017, Columbia Property Trust made interest payments of $27.4 million on the 2025 Bonds Payable and 2026 Bonds Payable; and during the year ended December 31, 2016, Columbia Property Trust made interest payments of $28.0 million on the 2025 Bonds Payable and the 2018 Bonds Payable. Interest payments on the 2026 Bonds Payable began in February 2017.
The restrictive covenants on the 2026 Bonds Payable and the 2025 Bonds Payable contain certain restrictive covenants. These covenants, as defined, pursuant to an indenture include:indenture:
a limitation onlimit the ratio of debt to total assets as defined, to 60%;
limits tolimit Columbia Property Trust's ability to incur debt if the consolidated income available for debt service to annual debt service charge as defined, for four previous consecutive fiscal quarters is less than 1.5:11.50:1.00 on a pro forma basis;
limits tolimit Columbia Property Trust's ability to incur liens if, on an aggregate basis for Columbia Property Trust, the secured debt amount would exceed 40% of the value of the total assets; and
a requirementrequire that the ratio of unencumbered asset value, as defined, to total unsecured debt be at least 150% at all times.
As of December 31, 2017,2019, Columbia Property Trust believes it was in compliance with the restrictive financial covenants on its 2026 Bonds Payable and 2025 Bonds Payable.
The estimated fair value of the 2025 Bonds Payable and the 2026 Bonds Payable as of December 31, 20172019 and 2016,2018, was approximately $702.8$734.4 million and $703.1$685.0 million,, respectively. The related carrying value of the bonds payable, net of discounts, as of December 31, 20172019 and 2016,2018, was $698.5$698.9 million and $698.3$698.7 million, respectively. TheColumbia Property Trust estimated the fair value of the bonds payable was estimated based on a discounted cash flow analysesanalysis, using the current incremental borrowing ratesobservable market data for its bonds payable and similar types of borrowing as of the respective reporting datesinstruments (Level 2). The discounted cash flow method of assessing fair value results in a general approximation of value, which may differ from the price that could be achieved in a market transaction.



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7.  Commitments and Contingencies
7.Commitments and Contingencies
Commitments Under Existing Lease Agreements
Certain lease agreements include provisions that, at the option of the tenant, may obligate Columbia Property Trust to expend capital to expand an existing property or provide other expenditures for the benefit of the tenant. As of December 31, 2017, no tenants2019, Columbia Property Trust had the following material tenant obligations which have exercised such options that have not been materially satisfied or recorded as a liabilityarisen in the accompanying consolidated balance sheets.normal course of business: $17.5 million related to the WeWork lease at 149 Madison and $17.9 million related to the Pershing lease at 95 Columbus. Such amounts are payable as incurred, and therefore no accrual is booked as of December 31, 2019. Additionally, in January 2020, Columbia Property Trust preleased space to be added to 80 M Street in a vertical expansion project. Columbia is required to fund approximately $70.0 million related to construction and tenant improvement allowances for the new space.
ObligationsCommitments Under Operating LeasesUnconsolidated Joint Venture Agreements
Columbia Property Trust owns three propertiesTrust's joint venture agreements, including those that are subjectdeveloping or redeveloping properties, provide for capital contributions to ground leases with expiration dates of February 28, 2062, December 14, 2077, and July 31, 2099, respectively. The lease expiring on December 14, 2077, has been fully prepaid. Columbia Property Trust also leases space for its corporate office. Columbia Property Trust incurred $2.6 million in rent expense relatedbe made to such leases in 2017, 2016, and 2015.the joint ventures by the joint venture partners. As of December 31, 2017, the required payments under the terms of the remaining two consolidated ground leases and the corporate office lease are as follows (in thousands):
2018$3,282
20193,360
20203,382
20213,405
20223,587
Thereafter192,352
       Total$209,368
Obligations Under Capital Leases
The building at Three Glenlake is subject to a capital lease of land. This obligation requires payments equal to the amounts of principal and interest receivable from related investments in development authority bonds, which mature in 2021. The required payments under the terms of the leases are as follows as of December 31, 2017 (in thousands):
2018$7,200
20197,200
20207,200
2021127,200
2022
Thereafter
 148,800
Amounts representing interest(28,800)
      Total$120,000
Guaranty of Debt of Unconsolidated Joint Venture
Upon entering into the Market Square Joint Venture in October 2015,2019, Columbia Property Trust entered intoholds 7 properties through consolidated and unconsolidated joint ventures, including three that are under development or redevelopment. Capital contributions are payable when a guaranty of a $25.0 million portion ofcapital call is made by the Market Square mortgage note, the amount of which is reduced as space is leased. As a result of leasing, the guaranty has been reduced to $11.2 millionjoint venture, and there are no unfunded capital calls as of December 31, 2017. 2019.
Columbia Property Trust believes thatguarantees a portion of the likelihooddebt held by the 799 Broadway Joint Venture. As of makingDecember 31, 2019, the 799 Broadway Joint Venture has $113.2 million in outstanding borrowings on the Construction Loan, as further described in Note 4, Unconsolidated Joint Ventures. Pursuant to a payment under thisjoint and several guaranty agreement with the Construction Loan lender, Columbia Property Trust and Normandy are required to make aggregate additional equity contributions to the joint venture based on the initial expected project costs, less the amount of equity contributions made to date. As of December 31, 2019, the remaining equity contribution requirement is remote;$31.9 million, of which $15.8 million reflects Columbia Property Trust's allocated share. Equity contributions become payable by Columbia Property Trust to the joint venture when a capital call is received. As of December 31, 2018, 0 capital calls remain unpaid; therefore, no0 liability has been recorded related to this guaranty as of December 31, 2017.guaranty.
Litigation
Columbia Property Trust is subject to various legal proceedings, claims, and administrative proceedings arising in the ordinary course of business, some of which are expected to be covered by liability insurance. Management makes assumptions and estimates concerning the likelihood and amount of any reasonably possible loss relating to these matters using the latest information available. Columbia Property Trust records a liability for litigation if an unfavorable outcome is probable and the amount of loss or range of loss can be reasonably estimated. If an unfavorable outcome is probable and a reasonable estimate of the loss is a range, Columbia


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Property Trust accrues the best estimate within the range. If no amount within the range is a better estimate than any other amount, Columbia Property Trust accrues the minimum amount within the range. If an unfavorable outcome is probable but the amount of the loss cannot be reasonably estimated, Columbia Property Trust discloses the nature of the litigation and indicates that an estimate of the loss or range of loss cannot be made. If an unfavorable outcome is reasonably possible and the estimated loss is material, Columbia Property Trust discloses the nature and estimate of the possible loss of the litigation. Columbia Property Trust does not disclose information with respect to litigation where the possibility of an unfavorable outcome is considered to be remote. Based on current expectations, such matters, both individually and in the aggregate, are not expected to have a material adverse effect on the liquidity, results of operations, business, or financial condition of Columbia Property Trust. Columbia Property Trust is not currently involved in any legal proceedings of which management would consider the outcome to be reasonably likely to have a material adverse effect on the results of operations or financial condition of Columbia Property Trust.
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8. Stockholders' Equity and Partner's Capital
Common Stock Repurchase Program
Columbia Property Trust's board of directors authorized the repurchase of up to an aggregate of $200.0 million of its common stock, par value $0.01 per share, from September 4, 20152019 through September 4, 20172021 (the "2015"2019 Stock Repurchase Program"). Under the 20152019 Stock Repurchase Program, Columbia Property Trust acquired 5.61.6 million shares at an average price of $21.85$20.72 per share, for aggregate purchases of $121.4 million. Columbia Property Trust's board of directors authorized a second stock repurchase program to purchase up to an aggregate of $200.0$33.5 million of its common stock, par value $0.01 per share, from September 4, 2017 through September 4, 2019 (the "2017 Stock Repurchase Program"). During the year ended December 31, 2017, Columbia Property Trust repurchased 2.7 million shares at an average price of $21.46 per share, for aggregate purchases of $57.6 million under the 2015 Stock Repurchase Program and the 2017 Stock Repurchase Program.during 2019. As of December 31, 2017, $194.82019, $166.5 million remains available for repurchases under the 20172019 Stock Repurchase Program. Common stock repurchases are charged against equity as incurred, and the repurchased shares are retired. Columbia Property Trust will continue to evaluate the purchase of shares, primarily through open market transactions, which are subject to market conditions and other factors.
Long-Term Incentive Plan
Employee Awards
Columbia Property Trust maintains a shareholder-approved,stockholder-approved, long-term incentive plan that provides for grants of stock to be made to certain employees and independent directors of Columbia Property Trust (as amended and restated, the "LTIP""LTI Plan"). In May 2017, Columbia Property Trust's shareholdersstockholders approved the LTIP,LTI Plan, and 4.8 million shares are authorized and reserved for issuance under the LTIP.LTI Plan.
On January 20, 2017, Columbia Property Trust granted 193,535 shares of common stock to employees, net of 17,938 shares withheld to settle the related tax liability, under the LTIP for 2016 performance, of which 25% vested upon grant; the remaining shares will vest ratably, with the passage of time, on January 31, 2018, 2019, and 2020. Employees receive quarterly dividends related to their entire grant, including the unvested shares, on each dividend payment date.
For 2017, Columbia Property Trust modified the structure of awards granted under the LTIP to includeTrust's LTI Plan includes both time-based awards and performance-based awards for all participants. For the 2017 time-basedTime-based awards Columbia Property Trust issued 139,825 shares of common stock to employees, which will vest ratably on each anniversary of the grant date over the next four years. For the 2017 performance-based awards, Columbia Property Trust granted 193,219Performance-based restricted sharestock units (the "Performance-Based RSUs"), of which 75% will vest 75% at the conclusion of a three-yearthree-year performance period, and the remaining 25% will vest one year later. For 2019, 2018, and 2017 time-based awards, Columbia Property Trust issued 176,122, 128,486, and 139,825 shares of common stock to employees, respectively; and for 2019, 2018, and 2017 performance-based awards Columbia Property Trust granted 256,384, 176,702, and 193,219 restricted stock units, respectively. In addition, in 2017, as a result of transitioning from a one- to three-year performance period, Columbia Property Trust granted 45,076 and 92,585 one-time transitional Performance-Based RSUs, which will fully vestvested at the conclusion of one-yearthe one-year and two-yeartwo-year performance periods, respectively. Upon reaching a predefined performance threshold, the payout of the Performance-Based RSUs will range from 50% to 150% of the Performance-Based RSUs granted, depending on Columbia Property Trust’sTrust's total stockholder return relative to the FTSE NAREIT Equity Office Index. All awards are expensed over the vesting period based on their estimated fair values. The fair-valuefair value of time-based awards is estimated using the closing stock price on the grant date;date, and fair values of performance-based awards are estimated using a Monte Carlo valuation method.valuation.
The 2018 LTIP2020 LTI Plan awards are consistent with the 2017 LTIP awards.LTI Plan awards granted in the three prior years. On January 1, 2018,2020, Columbia Property Trust granted 128,486165,233 shares of time-based stock awards to employees, which will vest ratably on each anniversary of the grant over the next four years. On January 1, 2018,2020, Columbia Property Trust also granted 176,702246,387 Performance-Based RSUs, of which 75% will vest at the conclusion of a three-yearthree-year performance period, and the remaining 25% will vest one year later. Consistent with the 2017 plan,prior-year awards, the payout of the 20182020 Performance-Based RSUs will be determined based on Columbia Property Trust’sTrust's total shareholderstockholder return relative to the FTSE NAREIT Equity Office Index.



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Below is a summary of the shares of stockemployee awards issued under the LTIPLTI Plan for 2019, 2018, and 2017:
Restricted SharesRSUs
Shares
(in thousands)
Estimated Fair Value(1)
Units
(in thousands)
Estimated Fair Value(2)
Unvested as of January 1, 2017256  $22.62  —  $—  
Granted333  $21.59  331  $18.78  
Vested(193) $22.42  —  $—  
Forfeited(7) $21.81  (2) $19.01  
Unvested as of December 31, 2017389  $21.85  329  $—  
Granted139  $22.97  206  $20.55  
Vested(153) $22.13  (70) $19.47  
Forfeited—  $—  (11) $18.60  
Unvested as of December 31, 2018375  

$22.15  454  $19.37  
Granted176  $19.36  257  $17.66  
Vested(165) $21.99  (121) $19.08  
Forfeited(12) $20.66  (6) $18.67  
Unvested as of December 31, 2019374  
(3)
$20.96  584  
(3)
$18.86  
(1)Reflects the weighted-average grant-date fair value using the market closing price on the date of the grant.
(2)Reflects the weighted-average grant-date fair value using a Monte Carlo valuation.
(3)As of December 31, 2019, Columbia Property Trust expects approximately 360,000 of the 374,000 unvested restricted shares to ultimately vest and approximately 562,000 of the 584,000 unvested RSUs to ultimately vest, assuming a forfeiture rate of 4%, which was determined based on peer company data, adjusted for the years ended December 31, 2017, 2016, and 2015:
  
Shares
(in thousands)
 
Weighted-Average,
Grant-Date Fair Value(1)
Unvested shares as of January 1, 2015 104
 $24.82
Granted 123
 $24.40
Vested (74) $24.60
Forfeited (2) $24.56
Unvested shares as of December 31, 2015 151
 $24.59
Granted 247
 $21.79
Vested (138) $23.32
Forfeited (4) $21.90
Unvested shares as of December 31, 2016 256

$22.62
Granted 333
 $21.59
Vested (193) $22.42
Forfeited (7) $21.81
Unvested shares as of December 31, 2017 389
(2) 
$21.85
(1)
Columbia Property Trust determined the weighted-average grant-date fair value using the market closing price on the date of the grant.
(2)
As of December 31, 2017, Columbia Property Trust expects approximately 370,000 of the 389,000 unvested shares to ultimately vest, assuming a forfeiture rate of 5%, which was determined based on peer company data, adjusted for the specifics of the LTIP.
A summary of the activity for the Performance-Based RSUs under the LTIP follows:LTI Plan.
  
Performance-Based RSU Awards
(in thousands)
 
Weighted-Average,
Grant-Date Fair Value(1)
Unvested performance-based share awards as of December 31, 2016 
 $
Granted 331
 $18.78
Vested 
 $
Forfeited (2) $19.01
Unvested performance-based share awards as of December 31, 2017 329
(2) 
$18.78
(1)
Columbia Property Trust determined the weighted-average grant-date fair value using the estimated fair value on the date of grant.
(2)
As of December 31, 2017, Columbia Property Trust expects approximately 303,000 of the 329,000 unvested performance-based restricted share units to ultimately vest, assuming a forfeiture rate of 8%, which was determined based on peer company data, adjusted for the specifics of the LTIP.


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Director Stock Grants
InColumbia Property Trust grants equity retainers to its directors under the LTI Plan. Such grants vest immediately. Beginning in May 2017, these grants are made annually for the following year and vest immediately. Prior to this time, the independent directors' equity retainers were paid quarterly. During 2019, 2018, and 2017, Columbia Property Trust began paying its directors'granted the following equity retainers on an annual basis for the ensuing period. From January 2014 through January 3, 2017, retainers:
Date of GrantShares
Grant-Date Fair Value(1)
2019 Director Grants:
May 14, 201928,000  $22.13  
2018 Director Grants:
May 14, 201831,743  $22.20  
2017 Director Grants:
January 3, 20178,279  $21.58  
May 2, 201733,581  $22.57  
November 27, 2017(2)
1,596  $23.07  
(1)Columbia Property Trust paid thesedetermined the grant-date fair value using the market closing price on the date of the grant.
(2)In November 2017, a new director was appointed to the board of directors of Columbia Property Trust. The new director received a pro-rated annual equity retainers in quarterly installments. The equity retainers vestretainer grant at the timeappointment.

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Date of Grant Shares 
Weighted-Average
Grant-Date Fair Value
2017 Director Grants:    
January 3, 2017 8,279
 $21.58
May 2, 2017 33,581
 $22.57
November 27, 2017(1)
 1,596
 $23.07
2016 Director Grants:    
January 4, 2016 7,439
 $23.00
April 1, 2016 8,120
 $21.89
July 1, 2016 8,158
 $21.52
October 3, 2016 7,727
 $22.19
2015 Director Grants:    
January 2, 2015 5,850
 $25.75
April 1, 2015 4,995
 $27.16
July 1, 2015 4,144
 $24.84
October 1, 2015 4,571
 $23.40
(1)
In November 2017, a new director was appointed to the board of directors of Columbia Property Trust. The new director received a pro-rated annual equity retainer grant at appointment.
Stock-Based Compensation Expense
Columbia Property Trust incurred stock-based compensation expense related to the following events (in thousands):
201920182017
Amortization of unvested LTI Plan awards$3,282  $3,800  $4,098  
Future employee awards(1)
2,720  2,461  2,509  
Issuance of shares to independent directors620  705  973  
Total stock-based compensation expense$6,622  $6,966  $7,580  
 2017 2016 2015
Amortization of unvested LTIP awards$4,098
 $2,856
 $1,699
Future employee awards(1)
2,509
 1,006
 1,353
Issuance of shares to independent directors973
 696
 496
Total stock-based compensation expense$7,580
 $4,558
 $3,548
(1)Reflects amortization of LTI Plan awards for service during the current period, for which shares will be issued in future periods.
(1)
Reflects amortization of LTIP awards for service during the current period, for which shares will be issued in future periods.
These expenses are included in general and administrative expenses – corporate in the accompanying consolidated statements of operations. There were $8.1$9.5 million and $3.2$8.6 million of unrecognized compensation costs related to unvested awards under the LTIPLTI Plan as of December 31, 20172019 and December 31, 2016,2018, respectively. This amount will be amortized over the respective vesting period, ranging from one year to four years at the time of grant. Effective in 2017, Columbia Property Trust changed from an LTIP measured over a one-year performance period to an LTIP measured over a three-year performance period and, as a result, has issued additional unvested shares in 2017.
Independent Director Stock Option Plan
Columbia Property Trust previously maintained an independent director stock option plan that providesprovided for grants of stock to be made to independent directors of Columbia Property Trust (the "Director Plan").A total of 25,000 shares were authorized and reserved for issuance under the Director Plan, which was suspended in April of 2008. Under the Director Plan, options were granted upon appointment to the board and on each annual meeting date. AllAs of January 1, 2017, Columbia Property Trust had 1,375 options grantedoutstanding under this plan, all of which expired in 2017. There are 0 remaining options outstanding under the Director Plan have expired.Plan.

Columbia OP Partner's Capital
Columbia Property Trust is the general partner and was the sole owner of Columbia OP for all periods presented.

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A summary of stock option activity under the Director Plan during 2017, 2016, and 2015, follows:
  Number 
Exercise
Price
 Exercisable
Outstanding as of December 31, 2014 3,875
 $48.00
 3,875
Granted 
    
Expired (2,000)    
Outstanding as of December 31, 2015 1,875
 $48.00
 1,875
Granted 
    
Expired (500)    
Outstanding as of December 31, 2016 1,375
 $48.00
 1,375
Granted 
    
Expired (1,375)    
Outstanding as of December 31, 2017 
 $
 
Columbia Property Trust has evaluated the fair values of options granted under the Director Plan using the Black-Scholes-Merton model and concluded that such values are insignificant as of the end of the period presented.
9.    Operating Leases
Columbia Property Trust's real estate assets are leased to tenants under operating leases for which the terms vary, including certain provisions to extend the lease agreement, options for early terminations, subject to specified penalties, and other terms and conditions as negotiated. Columbia Property Trust retains substantially all of the risks and benefits of ownership of the real estate assets leased to tenants. Amounts required as security deposits vary depending upon the terms of the respective leases and the creditworthiness of the tenant; however, such deposits generally are not significant. Therefore, exposure to credit risk exists to the extent that the receivables exceed this amount. Security deposits related to tenant leases are included in accounts payable, accrued expenses, and accrued capital expenditures in the accompanying consolidated balance sheets.
Based on 2017 annualized lease revenue, as defined, none of Columbia Property Trust's tenants represent more than 6% of Columbia Property Trust's portfolio. Tenants in business services, depository institutions, and engineering and management services represent 23%, 11%, and 8%, respectively, of Columbia Property Trust's annualized lease revenue. Columbia Property Trust's properties are located primarily in New York, San Francisco, Washington, D.C., and Atlanta. As of December 31, 2017, approximately 38%, 28%, and 14% of Columbia Property Trust's office properties are located in New York, San Francisco, and Washington, D.C., respectively, based on annualized lease revenue.    
The future minimum rental income from Columbia Property Trust's investment in real estate assets under noncancelable operating leases, excluding lease incentives, as of December 31, 2017, is as follows (in thousands):
2018$231,641
2019247,774
2020243,053
2021207,919
2022192,322
Thereafter1,440,917
     Total$2,563,626
As of December 31, 2017, Columbia Property Trust has recognized lease incentive obligations of $66.3 million, which will be amortized against rental income over the 30-year life of the related lease.


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10.  Supplemental Disclosures of Noncash Investing and Financing Activities
Outlined below are significant noncash investing and financing activities for Columbia Property Trust, Inc. for the years ended December 31, 2017, 2016,2019, 2018, and 20152017 (in thousands): 
 Years Ended December 31,
 201920182017
Investment in real estate funded with other assets$—  $617  $311  
Deposits applied to sales of real estate$—  $—  $10,000  
Other assets assumed upon acquisition$ $259  $1,014  
Other liabilities assumed upon acquisition$137  $664  $268  
Real estate assets transferred to unconsolidated joint venture$—  $—  $558,122  
Other assets transferred to unconsolidated joint venture$—  $—  $43,700  
Other liabilities transferred to unconsolidated joint venture$—  $—  $21,347  
Extinguishment of 263 Shuman Boulevard mortgage note by transferring property to lender$—  $49,000  $—  
Settlement of capital lease obligation with related development authority bonds$—  $120,000  $—  
Amortization of net discounts on debt$180  $180  $180  
Accrued investments in unconsolidated joint ventures$198  $386  $—  
Accrued capital expenditures and deferred lease costs$12,944  $15,145  $25,069  
Operating lease liability recorded at adoption of ASC 842$34,791  $—  $—  
Accrued dividends payable$24,209  $23,340  $23,961  
Cumulative-effect adjustment to equity for the adoption of ASU 2017-05 and 2014-09$—  $358,098  $—  
Market value adjustment to interest rate swaps that qualify for hedge accounting treatment$(3,445) $1,441  $1,786  
Common stock issued to employees and directors, and amortized (net of income tax witholdings)$6,622  $6,966  $7,580  

During 2019, 2018, and 2017, Columbia OP recorded non-cash contributions (distributions) from (to) Columbia Property Trust of $(7.0) million, $165.9 million, and $(65.2) million, respectively, to settle due from (to) affiliate account balances.
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 Years Ended December 31,
 2017 2016 2015
Investment in real estate funded with other assets$311
 $1,442
 $27,000
Deposits applied to sales of real estate$10,000
 $
 $
Other assets assumed upon acquisition$1,014
 $
 $7,785
Other liabilities assumed upon acquisition$268
 $
 $4,765
Real estate assets transferred to unconsolidated joint venture$558,122
 $
 $531,696
Mortgage note transferred to unconsolidated joint venture$
 $
 $325,000
Other assets transferred to unconsolidated joint venture$43,700
 $
 $37,987
Other liabilities transferred to unconsolidated joint venture$21,347
 $
 $20,595
Discount on issuance of bonds payable$
 $1,309
 $494
Amortization of discounts (premiums) on debt$180
 $267
 $(18)
Market value adjustment to interest rate swaps that qualify for hedge accounting treatment$1,786
 $1,553
 $(1,570)
Accrued capital expenditures and deferred lease costs$25,069
 $15,042
 $19,324
Accrued dividends payable$23,961
 $36,727
 $37,354
Common stock issued to employees and directors, and amortized (net of income tax witholdings)$5,764
 $3,388
 $3,548
10. Leases
Columbia Property Trust as Lessee
Columbia Property Trust is a lessee with respect to ground leases at certain of its investment properties, office space leases, and various information technology equipment leases. Operating lease assets represent Columbia Property Trust's right to use the underlying asset over the lease term, and operating lease liabilities represent Columbia Property Trust's obligation to make lease payments over the lease term. Operating lease liabilities are measured as the present value of lease payments over the lease term. As most of Columbia Property Trust's leases do not provide an implicit rate, Columbia Property Trust uses its incremental borrowing rate, based on information available at commencement, to calculate the present value of lease payments. Lease term extensions are included in the operating lease liability when it is reasonably certain that they will be exercised. Any variable payments for non-lease services provided under leases are expensed as incurred. Operating lease assets are measured based on the corresponding operating lease liability amount, reduced for lease incentives. At adoption of ASC 842, straight-line rent payable (receivable) balances and intangible lease asset (liability) balances were reclassified to the corresponding right of use assets. Operating lease expense is recognized on a straight-line basis over the lease term, and is recorded as property operating costs for ground leases and as general and administrative – corporate for all other operating leases. Contracts are evaluated at commencement to determine if the contract contains a lease, and the appropriate classification for such leases.
As of December 31, 2019, Columbia Property Trust has 1 ground lease with a remaining lease term of 58.0 years, inclusive of renewal options, which is included in operating lease assets of $29.5 million. Payments for all future periods under this ground lease have already been made. Thus, as of December 31, 2019, operating lease liabilities of $2.2 million include only the present value of future payments due under an office lease, which has a remaining lease term of 3.0 years.
As of December 31, 2019, the future minimum lease payments to be made by Columbia Property Trust under its operating lease are as follows (in thousands):
2020$728  
2021760  
2022793  
202367  
2024—  
Thereafter—  
Total lease payments2,348  
Less: interest expense(162) 
Present value of lease liabilities$2,186  
Weighted-average remaining lease term (years)3.1 years
Weighted-average discount rate4.5 %

Columbia Property Trust's operating leases had the following impacts on the consolidated balance sheet as of December 31, 2019 (in thousands):
Ground Leases  Office Lease  Total Operating Leases  
Assets:
Total operating lease assets$27,843  $1,627  $29,470  
Liabilities:
Total operating lease liabilities$—  $2,186  $2,186  

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Columbia Property Trust's operating leases had the following impacts on the consolidated statements of operations for 2019 (in thousands):
Ground Leases  Office Lease  Total Operating Leases  
Property operating costs$2,165  $—  $2,165  
General and administrative – corporate—  580  580  
Total operating lease expenses$2,165  $580  $2,745  

Columbia Property Trust's operating leases had the following impacts on the consolidated statements of cash flows for the 2019 (in thousands):
Ground Leases  Office Lease  Total Operating Leases  
Cash paid for operating lease liabilities included in cash flows from operations$(1,329) $(697) $(2,026) 

Columbia Property Trust as Lessor
Columbia Property Trust owns and leases commercial real estate, primarily office space, to tenants under operating leases for specified periods of time. Some of Columbia Property Trust's leases contain extension and/or termination options; however, the exercise of these extensions or terminations is at the discretion of the tenant and subject to negotiations. Therefore, such options are only recognized once they are deemed reasonably certain, typically at the time the option is exercised. Rental income related to such leases is recognized on a straight-line basis over the remaining lease period, and is included in lease revenues on the consolidated statements of operations. If at any point during the term of a lease, it is determined that the collectability of a tenant receivable is not probable, such receivable is written off against lease revenues. Contracts are evaluated at commencement to determine if the contract contains a lease, as defined by ASC 842, and the appropriate classification for such leases. In making this determination, Columbia Property Trust evaluates, among other things, whether the customer has the right to control the use of the identified asset. As of December 31, 2019, the weighted-average remaining term for such leases is approximately 7.4 years.
Lease revenues include fixed and variable payments. Fixed payments primarily relate to base rent and include payments related to lease termination fees; and variable payments primarily relate to tenant reimbursements for certain property operating costs. Lease termination fees are recognized on a straight-line basis from the point at which Columbia Property Trust receives notification of termination until the date the tenant loses the right to lease the space and Columbia Property Trust has satisfied all obligations under the lease or termination agreement. During 2019, 2018, and 2017, Columbia Property Trust earned lease termination fees of $0.4 million, $2.2 million, and $0.4 million, respectively. Fixed and variable payments for 2019 are as follows (in thousands):
11.Fixed paymentsIncome Taxes$250,077 
Variable payments26,072 
Total lease revenues$276,149 
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As of December 31, 2019, the future minimum fixed lease payments due to Columbia Property Trust under non-cancelable operating leases are as follows (thousands):
2020$223,249  
2021224,999  
2022216,210  
2023205,955  
2024197,846  
Thereafter1,028,119  
     Total$2,096,378  

11. Non-Lease Revenues
Columbia Property Trust applies Accounting Standard Codification 606, Revenues from Contracts with Customers ("ASC 606"), to its non-lease revenue streams outlined below. ASC 606 requires companies to perform a five-step analysis of transactions to determine when and how revenue is recognized. See Note 10, Leases, for information about revenues earned under leases.
Asset and Property Management Fee Income
Under asset and property management agreements in place with certain of its unconsolidated joint ventures, Columbia Property Trust earns revenue for performing asset and property management functions for properties owned through its joint ventures, as further described in Note 4, Unconsolidated Joint Ventures. During 2019, 2018, and 2017, Columbia Property Trust earned revenues of $7.5 million, $7.4 million, and $3.8 million, respectively, under these agreements. Asset and property management services are ongoing and routine, and are provided on a recurring basis. Therefore such fees are recognized ratably over the service period, usually a period of three months. Columbia Property Trust receives payments quarterly for asset management fees and monthly for property management fees.
Leasing Override Fees
Under the asset management agreements for certain properties owned through unconsolidated joint ventures, Columbia Property Trust is eligible to earn leasing override fees equal to a percentage of the total rental payments to be made by the tenant over the term of the lease. Such fees are required to be recognized when Columbia Property Trust's obligation to perform is complete, typically upon execution of the lease. Prior to January 1, 2018, such fees were not recognized until billable to the applicable joint venture, typically upon commencement of the lease. Upon implementing ASC 606, effective January 1, 2018, Columbia Property Trust accelerated the recognition of lease override fees related to a lease that had been executed but not yet commenced, by recording $0.3 million of lease override fees receivable as prepaid expenses and other assets and a cumulative-effect adjustment to increase equity by the same amount. During 2019 and 2018, Columbia Property Trust earned leasing override fees of $0.1 million and $0.2 million, respectively, which are included in asset and property management fee income on the accompanying consolidated statements of operations. During 2017, Columbia Property Trust did not earn any leasing override fees.
Salary and Other Reimbursement Revenue
Under the property management agreements for certain properties owned through unconsolidated joint ventures, Columbia Property Trust receives reimbursements for salaries and property operating costs for ongoing and routine services that are provided by Columbia Property Trust employees on a recurring basis. Such revenues are recognized ratably over the service period, usually a period of one month, three months, or one year. During 2019, 2018, and 2017, Columbia Property Trust earned salary and other reimbursement revenue of $4.5 million, $4.4 million, and $2.3 million, respectively. These amounts are included in other property income on the accompanying consolidated statements of income.
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Miscellaneous Revenue
Columbia Property Trust also receives revenues for services provided to its tenants through the TRS Entities, including fitness centers, shuttles, and cafeterias, which are included in other property income on the accompanying consolidated statements of income. Such services are ongoing and routine, and are provided on a recurring basis. These revenues are recognized ratably over the service period, usually a period of one month or one quarter. During 2019, 2018, and 2017, Columbia Property Trust earned miscellaneous revenue of $0.3 million, $0.7 million, and $0.6 million, respectively. These amounts are included in other property income on the accompanying consolidated statements of income.

12.Income Taxes
Columbia Property Trust's income tax basis net income during 2017, 2016,2019, 2018, and 20152017 (in thousands) follows:
201920182017
GAAP basis financial statement net income attributable to common stockholders$9,197  $9,491  $176,041  
Increase (Decrease) in Net Income Resulting From:
Depreciation and amortization expense for financial reporting purposes in excess of amounts for income tax purposes41,648  43,753  33,918  
Rental income accrued for financial reporting purposes in excess of (less than) amounts for income tax purposes(10,373) 7,145  (38,426) 
Net amortization of above-/below-market lease intangibles for financial reporting purposes less than amounts for income tax purposes(5,107) (5,990) (6,091) 
Interest expense for financial reporting purposes in excess of amounts for income tax purposes5,852  —  —  
Bad debt expense for financial reporting purposes less than (in excess of) amounts for income tax purposes  (31) 
Income from unconsolidated joint ventures for financial reporting purposes in excess of amount for income tax purposes15,224  16,654  13,902  
Gains or losses on disposition of real property for financial reporting purposes that are more favorable than amounts for income tax purposes(57,284) 79,376  (126,770) 
Other expenses or revenues for financial reporting purposes in excess (less than) of amounts for income tax purposes37,912  (32,342) 11,331  
Income tax basis net income, prior to dividends-paid deduction$37,070  $118,091  $63,874  
 2017 2016 2015
GAAP basis financial statement net income attributable to the common stockholders of Columbia Property Trust, Inc.$176,041
 $84,281
 $44,619
Increase (Decrease) in Net Income Resulting From:     
Depreciation and amortization expense for financial reporting purposes in excess of amounts for income tax purposes33,918
 34,569
 81,559
Rental income accrued for financial reporting purposes in excess of amounts for income tax purposes(38,426) (26,900) (13,409)
Net amortization of above-/below-market lease intangibles for financial reporting purposes less than amounts for income tax purposes(6,091) (9,013) (6,626)
Gain on interest rate swaps that do not qualify for hedge accounting treatment for financial reporting purposes in excess of amounts for income tax purposes
 
 (2,633)
Bad debt expense for financial reporting purposes less than amounts for income tax purposes(31) (261) 5
Income from unconsolidated joint ventures for financial reporting purchases in excess of amount for income tax purposes13,902
 
 
Gains or losses on disposition of real property for financial reporting purposes that are more favorable than amounts for income tax purposes(126,770) (71,701) (117,857)
Other expenses for financial reporting purposes in excess of amounts for income tax purposes11,331
 (2,707) 14,342
Income tax basis net income, prior to dividends-paid deduction$63,874
 $8,268
 $



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As of December 31, 2017,2019, the tax basis carrying value of Columbia Property Trust's total assets was approximately $4.6$4.4 billion. For income tax purposes, distributions to common stockholders are characterized as ordinary income, capital gains, or as a return of a stockholder's invested capital. Columbia Property Trust's distributions per common share are summarized as follows:
201920182017
Ordinary income53.1 %100.0 %58.5 %
Capital gains— %— %— %
Return of capital46.9 %— %41.5 %
Total100.0 %100.0 %100.0 %
 2017 2016 2015
Ordinary income58.5% 5.6% %
Capital gains% % %
Return of capital41.5% 94.4% 100.0%
Total100.0% 100.0% 100.0%

As of December 31, 2017,2019, returns for the calendar years 20132015 through 20172019 remain subject to examination by U.S. or various state tax jurisdictions.
No provisions for federal income taxes have been made in the accompanying consolidated financial statements, other than the provisions relating to the TRS Entities, as Columbia Property Trust made distributions in excess of taxable income for the periods presented. Columbia Property Trust is subject to certain state and local taxes related
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to property operations in certain locations, which have been provided for in the accompanying consolidated financial statements. The income taxes recorded by the TRS Entities for the years ended December 31, 2017, 2016,2019, 2018, and 2015,2017, are as follows:
Years Ended December 31,  
201920182017
Federal income tax$14  $63  $188  
State income tax (26) 38  
      Total income tax$20  $37  $226  
 Years Ended December 31,
 2017 2016 2015
Federal income tax$188
 $255
 $17
State income tax38
 21
 25
      Total income tax$226
 $276
 $42

As of December 31, 2017,2019 and 2018, Columbia Property Trust had a deferred tax assetassets of $205,000, and as of December 31, 2016, Columbia Property Trust had a deferred tax liability of $22,000,$0.2 million, which are included in prepaid expenses and other assets in the accompanying consolidated balance sheets.



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12.13. Earnings Per Share


The basic and diluted earnings-per-share computations and net income have been reduced for the dividends paid on unvested shares related to the LTIPLTI Plan grants, as described in Note 8, Stockholders' Equity and Partner's Capital. The following table reconciles the numerator for the basic and diluted earnings-per-share computations shown on the consolidated statements of income (in thousands):
201920182017
Net income attributable to common stockholders$9,197  $9,491  $176,041  
Distributions paid on unvested shares(310) (296) (337) 
Net income attributable to common stockholders used to calculate basic and diluted earnings per share$8,887  $9,195  $175,704  
  2017 2016 2015
Net income $176,041
 $84,281
 $44,619
Distributions paid on unvested shares (337) (314) (185)
Net income used to calculate basic and diluted earnings per share $175,704
 $83,967
 $44,434

The following table reconciles the denominator for the basic and diluted earnings-per-share computations shown on the consolidated statements of income (in thousands):
201920182017
Weighted-average common shares – basic116,261  117,888  120,795  
Plus Incremental Weighted-Average Shares from Time-Vested Conversions Less Assumed Share Repurchases:
Previously granted LTI Plan awards, unvested114  104  116  
Future LTI Plan awards83  319  248  
Weighted-average common shares – diluted116,458  118,311  121,159  
  2017 2016 2015
Weighted-average common shares – basic 120,795
 123,130
 124,757
Plus Incremental Weighted-Average Shares From Time-Vested Conversions Less Assumed Share Repurchases:      
Previously granted LTIP awards, unvested 116
 58
 33
Future LTIP awards 248
 40
 57
Weighted-average common shares – diluted 121,159
 123,228
 124,847



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13.14.Quarterly Results (Unaudited)


Presented below is a summary of the unaudited quarterly financial information for the years ended December 31, 20172019 and 20162018 (in thousands, except per-share data):
2019
First
Quarter
Second QuarterThird QuarterFourth Quarter
Revenues$75,433  $72,730  $71,949  $68,725  
Net income (loss) attributable to common stockholders$3,513  $47,747  
(1)
$(20,286) 
(2)
$(21,777) 
(3)
Net income (loss) attributable to common stockholders per share basic(4)
$0.03  $0.41  $(0.17) $(0.19) 
Net income (loss) attributable to common stockholders per share diluted(4)
$0.03  $0.41  $(0.17) $(0.19) 
Dividends declared per share$0.20  $0.20  $0.20  $0.21  

2018
First
Quarter
Second QuarterThird QuarterFourth Quarter
Revenues$73,710  $75,370  $73,340  $75,523  
Net income (loss) attributable to common stockholders$1,498  $(3,439) 
(5)
$6,429  $5,003  
Net income (loss) attributable to common stockholders basic(4)
$0.01  $(0.03) $0.05  $0.04  
Net income (loss) attributable to common stockholders diluted(4)
$0.01  $(0.03) $0.05  $0.04  
Dividends declared per share$0.20  $0.20  $0.20  $0.20  
(1)Net income attributable to common stockholders for the second quarter of 2019 includes a gain on sale of real estate assets of $41.9 million, as described in Note 3, Real Estate Transactions.
(2)Net loss attributable to common stockholders for the third quarter of 2019 includes an impairment loss on real estate of $23.4 million related to sales of real estate assets, as described in Note 3, Real Estate Transactions.
(3)Net loss attributable to common stockholders for the third quarter of 2019 includes an impairment loss on real estate of $20.6 million related to sales of real estate assets, as described in Note 2, Summary of Significant Accounting Policies.
(4)Quarterly net income (loss) per share basic and diluted is calculated based on quarterly basic and diluted weighted-average shares outstanding, respectively.
(5)Net loss attributable to common stockholders for the second quarter of 2018 includes an impairment loss on real estate of $30.8 million related to sales of real estate assets, as described in Note 3, Real Estate Transactions, and a gain on extinguishment of debt of $24.0 million, related to the settlement of a mortgage note, as described in Note 5, Line of Credit and Notes Payable.
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 2017
 
First
Quarter
 Second Quarter Third Quarter Fourth Quarter
Revenues$82,156
  $74,857
 $60,362
  $71,625
Net income$74,722
(1) 
 $1,133
 $101,534
(2) 
 $(1,348)
Net income per share  basic
$0.61
  $0.01
 $0.84
  $(0.01)
Net income per share  diluted
$0.61
  $0.01
 $0.84
  $(0.01)
Dividends declared per share$0.20
  $0.20
 $0.20
  $0.20
 2016
 
First
Quarter
 Second Quarter Third Quarter Fourth Quarter
Revenues$126,579
 $127,930
  $113,266
  $105,768
 
Net income$6,697
 $13,286
(3) 
 $36,898
(4) 
 $27,400
(5) 
Net income per share  basic
$0.05
 $0.11
  $0.30
  $0.22
 
Net income per share  diluted
$0.05
 $0.11
  $0.30
  $0.22
 
Dividends declared per share$0.30
 $0.30
  $0.30
  $0.30
 
(1)
Net income for the first quarter of 2017 includes gains on sales of real estate assets of $73.2 million related to the sales of real estate assets as described in Note 3, Real Estate Transactions.
(2)
Net income for the third quarter of 2017 includes gains on sales of real estate assets of $102.4 million related to the sales of real estate assets as described in Note 3, Real Estate Transactions.
(3)
Net income for the second quarter of 2016 includes an early termination payment at 222 East 41st Street of $6.2 million.
(4)
Net income for the third quarter of 2016 includes gains on sales of real estate assets of $50.4 million related to the sales of real estate assets as described in Note 3, Real Estate Transactions; partially offset by losses on early extinguishment of debt of $18.9 million related to the early repayment of the 2018 Bonds Payable.
(5)
Net income for the fourth quarter of 2016 includes gains on sales of real estate assets of $22.2 million related to the sales of real estate assets as described in Note 3, Real Estate Transactions.



F-34


14.15.  Segment Information
Columbia Property Trust establishes operating segments at the property level, and aggregates individual properties into reportable segments for high-barrier-to-entry markets and other geographic locations in which Columbia Property Trust has significant investments. Columbia Property Trust considers geographic location when evaluating its portfolio composition, and in assessing the ongoing operations and performance of its properties. As of December 31, 2017,2019, Columbia Property Trust had the following reportable segments: New York, San Francisco, Atlanta, Washington, D.C., Boston, Los Angeles, and all other office markets. The all other office markets reportable segment consists of properties in similar low-barrier-to-entry geographic locations in which Columbia Property Trust does not have a substantial presence andand/or does not plan to make further investments. Upon selling its remaining properties in Atlanta, Columbia Property Trust has combined Atlanta and the all other office markets reportable segment for all periods presented. During the periods presented, there have been no material inter-segmentintersegment transactions.
Net operating income ("NOI") is a non-GAAP financial measure and is not considered a measure of operating results or cash flows from operations under GAAP. NOI is the primary performance measure reviewed by management to assess operating performance of properties and is calculated by deducting operating expenses from operating revenues. Operating revenues include rental income, tenant reimbursements,lease revenues, hotel income, and other property income; and operating expenses include property and hotel operating costs. The NOI performance metric consists of only revenues and expenses directly related to real estate rental operations. NOI reflects property acquisitions and dispositions, occupancy levels, rental rate increases or decreases, and the recoverability of operating expenses. NOI, as Columbia Property Trust calculates it, may not be directly comparable to similarly titled, but differently calculated, measures for other REITs.
Asset information and capital expenditures by segment are not reported because Columbia Property Trust does not use these measures to assess performance. Depreciation and amortization expense, along with other expense and income items, are not allocated among segments.
The following table presents property operating revenues by geographic reportable segment (in thousands):
For the Years Ended December 31,
201920182017
New York(1)
$157,244  $158,077  $123,280  
San Francisco(2)
114,295  105,947  105,550  
Washington, D.C.(3)
58,200  57,274  36,934  
Boston14,285  13,441  11,559  
Los Angeles7,754  7,783  7,462  
All other office markets41,321  57,395  59,263  
Total office segments393,099  399,917  344,048  
Hotel—  —  1,328  
Corporate3,137  3,165  579  
Total$396,236  $403,082  $345,955  
 For the Years Ended December 31,
 2017 2016 2015
New York(1)
$123,280
 $117,235
 $97,643
San Francisco(2)
105,550
 109,995
 112,696
Atlanta37,803
 36,742
 35,715
Washington, D.C.(3)
36,934
 33,024
 62,766
Boston11,559
 11,796
 20,895
Los Angeles7,462
 7,443
 7,588
All other office markets21,460
 152,858
 207,367
Total office segments344,048
 469,093
 544,670
Hotel1,328
 22,958
 24,583
Corporate(4)
579
 397
 267
Total$345,955
 $492,448
 $569,520
(1)Includes operating revenues for 101 Franklin Street from December 2, 2019 through December 31, 2019; and for one unconsolidated property, 114 Fifth Avenue, based on Columbia Property Trust's ownership interest (49.5%)from July 6, 2017 (acquisition date) through December 31, 2019.
(1)
Includes operating revenues for 49.5% of 114 Fifth Avenue based on Columbia Property Trust's ownership interest, from July 6, 2017 through December 31, 2017. These operating revenues are included in equity in income (loss) of unconsolidated joint ventures in the accompanying consolidated statements of operations.
(2)
Includes operating revenues for 100.0% of 333 Market Street and University Circle through July 5, 2017. Includes operating revenues for 77.5% of 333 Market Street and University Circle based on Columbia Property Trust's ownership interest, from July 6, 2017 through December 31, 2017, which are included in equity in income (loss) of unconsolidated joint ventures in the accompanying consolidated statements of operations.
(3)
Includes operating revenues for 100.0% of Market Square through October 28, 2015. Includes operating revenues for 51.0% of the Market Square buildings based on Columbia Property Trust's ownership interest, from October 28, 2015 through December 31, 2017; and includes operating revenues for 55.0% of 1800 M Street based on Columbia Property Trust's ownership interest, from October 11, 2017 through December 31, 2017, which are included in equity in income (loss) of unconsolidated joint ventures in the accompanying consolidated statements of operations. 
(4)
The amounts for 2016 and 2015 have been adjusted to conform with 2017 presentation by removing asset and property management fee income.

(2)Includes operating revenues for two unconsolidated properties, 333 Market Street and University Circle, based on Columbia Property Trust's ownership interests: 100.0% from January 1, 2017 through July 5, 2017; 77.5% from July 6, 2017 through January 31, 2018; and 55.0% from February 1, 2018 through December 31, 2019.
(3)Includes operating revenues for two unconsolidated properties, Market Square and 1800 M Street, based on Columbia Property Trust's ownership interests: 51.0% for the Market Square for all periods presented; 55.0% for 1800 M Street from October 11, 2017 (acquisition date) through December 31, 2019.


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F-35


A reconciliation of GAAP revenues to operating revenues is presented below (in thousands):
For the Years Ended December 31,
201920182017
Total revenues$288,837  $297,943  $289,000  
Operating revenues included in income (loss) from unconsolidated joint ventures(1)
114,943  112,523  60,737  
Less: asset and property management fee income(2)
(7,544) (7,384) (3,782) 
Total property operating revenues$396,236  $403,082  $345,955  
 For the Years Ended December 31,
 2017 2016 2015
Total revenues$289,000
 $473,543
 $566,065
Operating revenues included in income (loss) from unconsolidated joint ventures(1)
60,737
 21,027
 4,060
Asset and property management fee income(2)
(3,782) (2,122) (605)
Total property operating revenues$345,955
 $492,448
 $569,520
(1)Columbia Property Trust records its interest in properties held through unconsolidated joint ventures using the equity method of accounting, and reflects its interest in the operating revenues of these properties in income (loss) from unconsolidated joint ventures in the accompanying consolidated statements of operations.
(1)
(2)See Note 11, Non-Lease Revenues, of the accompanying consolidated financial statements.
Columbia Property Trust records its interest in properties held through unconsolidated joint ventures using the equity method of accounting, and reflects its interest in the operating revenues of these properties in income (loss) from unconsolidated joint ventures in the accompanying consolidated statements of operations.
(2)
See Note 4, Unconsolidated Joint Ventures, of the accompanying consolidated financial statements.
The following table presents net operating income by geographic reportable segment (in thousands):
For the Years Ended December 31,
201920182017
New York(1)
$93,112  $94,765  $73,893  
San Francisco(2)
83,305  79,354  76,163  
Washington, D.C.(3)
33,953  34,750  18,496  
Boston7,539  7,205  5,380  
Los Angeles4,601  4,590  4,529  
All other office markets35,428  51,638  52,153  
Total office segments257,938  272,302  230,614  
Hotel—  —  (913) 
Corporate(904) (803) (826) 
Total$257,034  $271,499  $228,875  
 For the Years Ended December 31,
 2017 2016 2015
New York(1)
$73,893
 $70,038
 $54,692
San Francisco(2)
76,163
 80,529
 83,826
Atlanta33,603
 32,939
 31,912
Washington, D.C.(3)
18,496
 16,372
 36,958
Boston5,380
 5,114
 12,519
Los Angeles4,529
 4,523
 4,853
All other office markets18,550
 92,756
 129,199
Total office segments230,614
 302,271
 353,959
Hotel(913) 3,988
 4,593
Corporate(4)
(826) (158) (586)
Total$228,875
 $306,101
 $357,966
(1)
Includes net operating income for 49.5% of 114 Fifth Avenue based on Columbia Property Trust's ownership interest, from July 6, 2017 through December 31, 2017. This net operating income is included in equity in income (loss) of unconsolidated joint ventures in the accompanying consolidated statements of operations.
(2)
Includes net operating income for 100.0% of 333 Market Street and University Circle through July 5, 2017. Includes net operating income for 77.5% of 333 Market Street and University Circle based on Columbia Property Trust's ownership interest, from July 6, 2017 through December 31, 2017, which is included in equity in income (loss) of unconsolidated joint ventures in the accompanying consolidated statements of operations.
(3)
Includes net operating income for 100.0% of Market Square through October 28, 2015. Includes net operating income for 51.0% of the Market Square buildings based on Columbia Property Trust's ownership interest, from October 28, 2015 through December 31, 2017; and includes net operating income for 55.0% of 1800 M Street based on Columbia Property Trust's ownership interest, from October 11, 2017 through December 31, 2017. This net operating income is included in equity in income (loss) of unconsolidated joint ventures in the accompanying consolidated statements of operations.
(4)
The amounts for 2016 and 2015 have been adjusted to conform with 2017 presentation by removing asset and property management fee income.

(1)Includes NOI for the following unconsolidated properties based on Columbia Property Trust's ownership interest:

114 Fifth Avenue: (49.5%) from July 6, 2017 (acquisition date) through December 31, 2019
799 Broadway: (49.7%) from October 3, 2018 (acquisition date) through December 31, 2019
(2)Includes NOI for the following unconsolidated properties based on Columbia Property Trust's ownership interests:
333 Market Street and University Circle: (100.0%) from January 1, 2017 through July 5, 2017
333 Market Street and University Circle: (77.5%) from July 6, 2017 through January 31, 2018
333 Market Street and University Circle: (55.0%) from February 1, 2018 through December, 2019
(3)Includes NOI for the following unconsolidated properties based on Columbia Property Trust's ownership interest:
Market Square: (51.0%) for all periods presented
1800 M Street: (55.0%) from October 11, 2017 (acquisition date) through December 31, 2019


F-47
F-36


A reconciliation of GAAP net income to NOI is presented below (in thousands):
For the Years Ended December 31,
201920182017
Net income attributable to common stockholders$9,197  $9,491  $176,041  
Depreciation78,292  81,795  80,394  
Amortization27,908  32,554  32,403  
Impairment loss on real estate assets43,941  30,812  —  
General and administrative – corporate32,779  32,979  34,966  
General and administrative – joint venture3,567  3,108  1,454  
Pre-acquisition costs6,398  —  —  
Net interest expense42,997  56,477  58,187  
Interest income from development authority bonds—  (6,871) (7,200) 
(Gain) loss on extinguishment of debt—  (23,340) 325  
Income tax expense21  37  (213) 
Asset and property management fee income(7,544) (7,384) (3,782) 
Adjustments included in loss from unconsolidated joint venture61,634  62,603  31,818  
Gain on sale of unconsolidated joint venture interest—  (762) —  
Gains on sales of real estate assets(42,030) —  (175,518) 
Adjustment attributable to noncontrolling interests(126) —  —  
Net operating income$257,034  $271,499  $228,875  

16.  Subsequent Events
 For the Years Ended December 31,
 2017 2016 2015
Net income$176,041
 $84,281
 $44,619
Depreciation80,394
 108,543
 131,490
Amortization32,403
 56,775
 87,128
General and administrative  corporate
34,966
 33,876
 29,683
General and administrative  joint venture
1,454
 
 
Real estate acquisition costs
 
 3,675
Net interest expense58,187
 67,538
 85,265
Interest income from development authority bonds(7,200) (7,200) (7,200)
Interest rate swap valuation adjustment
 
 (2,634)
Interest expense associated with interest rate swap
 
 2,642
Settlement of interest rate swap
 
 1,102
Loss on early extinguishment of debt325
 18,997
 3,149
Income tax expense(213) 445
 378
Asset and property management fee income(3,782) (2,122) (605)
Adjustments included in loss from unconsolidated joint venture31,818
 17,293
 3,134
Gains on sales of real estate assets(175,518) (72,325) (23,860)
Net operating income$228,875
 $306,101
 $357,966
15.     Financial Information for Parent Guarantor, Other Guarantor Subsidiaries, and Non-Guarantor Subsidiaries
The 2026 Bonds Payable and the 2025 Bonds Payable (see Note 6, Bonds Payable) were issued by Columbia Property Trust OP, and are guaranteed by Columbia Property Trust. In accordance with SEC Rule 3-10(c), Columbia Property Trust includes herein condensed consolidating financial information in lieu of separate financial statements of the subsidiary issuer (Columbia Property Trust OP), as defined in the bond indentures, because all of the following criteria are met:
(1)the subsidiary issuer (Columbia Property Trust OP) is 100% owned by the parent company guarantor (Columbia Property Trust);
(2)the guarantees are full and unconditional; and
(3)no other subsidiary of the parent company guarantor (Columbia Property Trust) guarantees the 2025 Bonds Payable or the 2018 Bonds Payable.
Columbia Property Trust uses the equity method with respect to its investment in subsidiaries included in its condensed consolidating financial statements. Columbia Property Trust has corrected the presentation of intercompany cash transfers between the REIT Parent and its subsidiaries in the consolidating statements of cash flow. Instead of showing one amount for intercompany transfers between each entity group, intercompany transfers are broken out by cash flow type (i.e. operating, investing, and financing) for all periods presented, consistent with the equity method of accounting. All such changes are eliminated in consolidation, and therefore do not impact Columbia Property Trust's consolidated financial statement totals. Management has concluded that the effect of this correction is not material to the consolidated financial statements. This change had the following impact to the condensed consolidating statement of cash flows for the years ended December 31, 2016:  increase to operating cash flows for the parent and issuer of $53.1 million and $136.7 million, respectively; and increase (decrease) in investing cash flows for the parent, issuer, and non-guarantors of $(281.8) million, $568.5 million and $603.7 million, respectively; and increase (decrease) in financing cash flows for the parent, issuer, and non-guarantors of $228.7 million, $(705.2) million, and $(603.7) million, respectively. This change had the following impact to the condensed consolidating statement of cash flows for the years ended December 31, 2015:  increase to operating cash flows for the parent of $15.7 million; and increase (decrease) in investing cash flows for the parent, issuer, and non-guarantors of $1,045.9 million, $(145.3) million and $(468.0) million, respectively; and increase (decrease) in financing cash flows for the parent, issuer, and non-guarantors of $(1,061.6) million, $145.3 million and $468.0 million, respectively. The impact to individual financial statement captions within the condensed consolidating statement of cash flows is footnoted below.
Set forth below are Columbia Property Trust's condensed consolidating balance sheets as of December 31, 2017 and 2016 (in thousands), as well as its condensed consolidating statements of operations and its condensed consolidating statements of


F-37


comprehensive income for 2017, 2016, and 2015 (in thousands); and its condensed consolidating statements of cash flows for 2017, 2016, and 2015 (in thousands).
Condensed Consolidating Balance Sheets (in thousands)
 As of December 31, 2017
 Columbia Property Trust
(Parent)
 Columbia Property Trust OP 
(the Issuer)
 
Non-
Guarantors
 
Consolidating
Adjustments
 Columbia Property Trust
(Consolidated)
Assets:         
Real Estate Assets, at Cost:         
Land$
 $
 $825,208
 $
 $825,208
Buildings and improvements, net
 2,110
 2,061,309
 
 2,063,419
Intangible lease assets, net
 
 199,260
 
 199,260
Construction in progress
 
 44,742
 
 44,742
Total real estate assets
 2,110
 3,130,519
 
 3,132,629
Investment in unconsolidated joint ventures
 943,241
 1
 
 943,242
Cash and cash equivalents692
 5,079
 3,796
 
 9,567
Investment in subsidiaries2,238,577
 1,186,594
 
 (3,425,171) 
Tenant receivables, net of allowance
 30
 2,098
 
 2,128
Straight-line rent receivable
 
 92,235
 
 92,235
Prepaid expenses and other assets317,364
 336,598
 19,375
 (645,654) 27,683
Intangible lease origination costs, net
 
 42,959
 
 42,959
Deferred lease costs, net
 
 141,096
 
 141,096
Investment in development authority bonds
 
 120,000
 
 120,000
Total assets$2,556,633
 $2,473,652
 $3,552,079
 $(4,070,825) $4,511,539
Liabilities:         
Line of credit and notes payable, net$
 $899,168
 $715,327
 $(643,310) $971,185
Bonds payable, net
 693,756
 
 
 693,756
Accounts payable, accrued expenses, and accrued capital expenditures732
 10,325
 113,949
 (4) 125,002
Dividends payable23,961
 
 
 
 23,961
Due to affiliates
 
 2,340
 (2,340) 
Deferred income4
 81
 18,396
 
 18,481
Intangible lease liabilities, net
 
 27,218
 
 27,218
Obligations under capital leases
 
 120,000
 
 120,000
Total liabilities24,697
 1,603,330
 997,230
 (645,654) 1,979,603
Equity:         
Total equity2,531,936
 870,322
 2,554,849
 (3,425,171) 2,531,936
Total liabilities and equity$2,556,633
 $2,473,652
 $3,552,079
 $(4,070,825) $4,511,539




F-38


Condensed Consolidating Balance Sheets (in thousands)
 As of December 31, 2016
 Columbia Property Trust
(Parent)
 Columbia Property Trust OP 
(the Issuer)
 
Non-
Guarantors
 
Consolidating
Adjustments
 Columbia Property Trust
(Consolidated)
Assets:         
Real Estate Assets, at Cost:         
Land$
 $
 $751,351
 $
 $751,351
Building and improvements, net
 219
 2,120,931
 
 2,121,150
Intangible lease assets, net
 
 193,311
 
 193,311
Construction in progress
 
 36,188
 
 36,188
Real estate assets held for sale, net
 34,956
 377,550
 
 412,506
Total real estate assets
 35,175
 3,479,331
 
 3,514,506
Investment in unconsolidated joint ventures
 127,346
 
 
 127,346
Cash and cash equivalents174,420
 16,509
 25,156
 
 216,085
Investment in subsidiaries2,047,922
 1,782,752
 
 (3,830,674) 
Tenant receivables, net of allowance
 
 7,163
 
 7,163
Straight-line rent receivable
 
 64,811
 
 64,811
Prepaid expenses and other assets317,153
 262,216
 15,593
 (570,687) 24,275
Intangible lease origination costs, net
 
 54,279
 
 54,279
Deferred lease costs, net
 
 125,799
 
 125,799
Investment in development authority
bonds

 
 120,000
 
 120,000
Other assets held for sale, net
 3,767
 41,814
 (52) 45,529
Total assets$2,539,495
 $2,227,765
 $3,933,946
 $(4,401,413) $4,299,793
Liabilities:         
Lines of credit and notes payable, net$
 $447,643
 $704,585
 $(430,762) $721,466
Bonds payable, net
 692,972
 
 
 692,972
Accounts payable, accrued expenses,
and accrued capital expenditures

 10,395
 120,633
 
 131,028
Dividends payable36,727
 
 
 
 36,727
Due to affiliates
 58
 1,534
 (1,592) 
Deferred income
 
 19,694
 
 19,694
Intangible lease liabilities, net
 
 33,375
 
 33,375
Obligations under capital leases
 
 120,000
 
 120,000
Liabilities held for sale, net
 2,651
 177,497
 (138,385) 41,763
Total liabilities36,727
 1,153,719
 1,177,318
 (570,739) 1,797,025
Equity:         
Total equity2,502,768
 1,074,046
 2,756,628
 (3,830,674) 2,502,768
Total liabilities and equity$2,539,495

$2,227,765

$3,933,946

$(4,401,413)
$4,299,793


F-39


Consolidating Statements of Operations (in thousands)
 For the Year Ended December 31, 2017
 Columbia Property Trust
(Parent)
 Columbia Property Trust OP
(the Issuer)
 
Non-
Guarantors
 
Consolidating
Adjustments
 Columbia Property Trust
(Consolidated)
Revenues:         
Rental income$
 $51
 $257,368
 $(360) $257,059
Tenant reimbursements
 (60) 23,571
 
 23,511
Hotel income
 
 1,339
 
 1,339
Asset and property management fee income1,908
 
 1,874
 
 3,782
Other property income
 
 3,327
 (18) 3,309
 1,908
 (9) 287,479
 (378) 289,000
Expenses:         
Property operating costs
 308
 87,857
 (360) 87,805
Hotel operating costs
 
 2,089
 
 2,089
Asset and Property Management Fee Expenses:         
Related-party
 3
 
 (3) 
Other
 
 918
 
 918
Depreciation
 869
 79,525
 
 80,394
Amortization
 5
 32,398
 
 32,403
General and administrative  corporate
259
 9,048
 25,674
 (15) 34,966
General and administrative  joint ventures

 
 1,454
 
 1,454
 259
 10,233
 229,915
 (378) 240,029
 1,649
 (10,242) 57,564
 
 48,971
Other Income (Expense):         
Interest expense
 (44,259) (38,238) 21,981
 (60,516)
Interest and other income16,535
 7,762
 7,213
 (21,981) 9,529
Loss on early extinguishment of debt
 
 (325) 
 (325)
 16,535
 (36,497) (31,350) 
 (51,312)
Income (loss) before income taxes, unconsolidated entities, and gains on sales of real estate assets18,184
 (46,739) 26,214
 
 (2,341)
Income tax expense
 (1) 214
 
 213
Income (loss) from unconsolidated entities157,857
 198,620
 
 (353,826) 2,651
Income before gains on sales of real estate assets176,041
 151,880
 26,428
 (353,826) 523
Gains on sales of real estate assets
 11,050
 164,468
 
 175,518
Net income$176,041

$162,930

$190,896

$(353,826)
$176,041






F-40


Consolidating Statements of Operations (in thousands)
 For the Year Ended December 31, 2016
 Columbia Property Trust
(Parent)
 Columbia Property Trust OP
(the Issuer)
 
Non-
Guarantors
 
Consolidating
Adjustments
 Columbia Property Trust
(Consolidated)
Revenues:         
Rental income$
 $3,622
 $362,947
 $(383) $366,186
Tenant reimbursements
 1,963
 67,807
 
 69,770
Hotel income
 
 22,661
 
 22,661
Asset and property management fee income574
 
 1,548
 
 2,122
Other property income406
 
 12,804
 (406) 12,804
 980

5,585

467,767

(789)
473,543
Expenses:         
Property operating costs
 3,209
 152,142
 (383) 154,968
Hotel operating costs
 
 18,686
 
 18,686
Asset and Property Management Fee Expenses:         
Related-party
 154
 
 (154) 
Other
 
 1,415
 
 1,415
Depreciation
 2,760
 105,783
 
 108,543
Amortization
 364
 56,411
 
 56,775
General and administrative  corporate
154
 8,566
 25,408
 (252) 33,876
 154

15,053

359,845

(789) 374,263
 826

(9,468)
107,922



99,280
Other Income (Expense):         
Interest expense
 (46,797) (50,302) 29,490
 (67,609)
Interest and other income14,268
 15,272
 7,238
 (29,490) 7,288
Loss on early extinguishment of debt
 (18,987) (10) 
 (18,997)
 14,268

(50,512)
(43,074)


(79,318)
Income (loss) before income taxes, unconsolidated entities, and gains on sales of real estate assets15,094

(59,980)
64,848



19,962
Income tax expense
 (20) (425) 
 (445)
Income (loss) from unconsolidated entities69,187
 113,105
 
 (189,853) (7,561)
Income before gains (loss) on sales of real estate assets84,281
 53,105
 64,423
 (189,853) 11,956
Gains (loss) on sales of real estate assets
 
 72,325
 
 72,325
Net income$84,281

$53,105

$136,748

$(189,853)
$84,281


F-41


Consolidating Statements of Operations (in thousands)
 For the Year Ended December 31, 2015
 Columbia Property Trust
(Parent)
 Columbia Property Trust OP
(the Issuer)
 
Non-
Guarantors
 
Consolidating
Adjustments
 Columbia Property Trust
(Consolidated)
Revenues:         
Rental income$
 $2,662
 $433,763
 $(377) $436,048
Tenant reimbursements
 1,316
 98,339
 
 99,655
Hotel income
 
 24,309
 
 24,309
Asset and property management fee income171
 
 434
 
 605
Other property income
 
 5,781
 (333) 5,448
 171
 3,978
 562,626
 (710) 566,065
Expenses:         
Property operating costs
 3,065
 185,390
 (377) 188,078
Hotel operating costs
 
 19,615
 
 19,615
Asset and Property Management Fee Expenses:         
Related-party
 100
 
 (100) 
Other
 
 1,816
 
 1,816
Depreciation
 2,571
 128,919
 
 131,490
Amortization
 237
 86,891
 
 87,128
General and administrative  corporate
152
 8,754
 21,010
 (233) 29,683
Acquisition expenses
 11
 3,664
 
 3,675
 152
 14,738
 447,305
 (710) 461,485
 19
 (10,760) 115,321
 
 104,580
Other Income (Expense):         
Interest expense
 (44,919) (67,076) 26,699
 (85,296)
Interest and other income14,141
 12,565
 7,247
 (26,699) 7,254
Loss on interest rate swaps
 (1,101) (9) 
 (1,110)
Loss on early extinguishment of debt
 (1,050) (2,099) 
 (3,149)
 14,141

(34,505)
(61,937)


(82,301)
Income before income taxes, unconsolidated entities, and gains on sales of real estate assets14,160
 (45,265) 53,384
 
 22,279
Income tax expense
 (25) (353) 
 (378)
Income (loss) from unconsolidated entities30,459
 59,165
 
 (90,766) (1,142)
Income before gains on sales of real estate assets44,619
 13,875
 53,031
 (90,766) 20,759
Gains on sales of real estate assets
 (19) 23,879
 
 23,860
Net income$44,619
 $13,856
 $76,910
 $(90,766) $44,619


F-42


Consolidating Statements of Comprehensive Income (in thousands)
 For the Year Ended December 31, 2017
 Columbia Property Trust
(Parent)
 Columbia Property Trust OP
(the Issuer)
 
Non-
Guarantors
 
Consolidating
Adjustments
 Columbia Property Trust
(Consolidated)
Net income$176,041
 $162,930
 $190,896
 $(353,826) $176,041
Market value adjustment to interest rate swap1,786
 1,786
 
 (1,786) 1,786
Comprehensive income$177,827
 $164,716
 $190,896
 $(355,612) $177,827
 For the Year Ended December 31, 2016
 Columbia Property Trust
(Parent)
 Columbia Property Trust OP
(the Issuer)
 
Non-
Guarantors
 
Consolidating
Adjustments
 Columbia Property Trust
(Consolidated)
Net income$84,281
 $53,105
 $136,748
 $(189,853) $84,281
Market value adjustment to interest rate swap1,553
 1,553
 
 (1,553) 1,553
Comprehensive income$85,834

$54,658

$136,748

$(191,406)
$85,834
 For the Year Ended December 31, 2015
 Columbia Property Trust
(Parent)
 Columbia Property Trust OP
(the Issuer)
 
Non-
Guarantors
 
Consolidating
Adjustments
 Columbia Property Trust
(Consolidated)
Net income$44,619
 $13,856
 $76,910
 $(90,766) $44,619
Market value adjustment to interest rate swap(1,570) (1,570) 
 1,570
 (1,570)
Settlement of interest rate swap1,102
 1,102
 
 (1,102) 1,102
Comprehensive income$44,151
 $13,388
 $76,910
 $(90,298) $44,151




F-43


Consolidating Statements of Cash Flows (in thousands)

 For the Year Ended December 31, 2017
 Columbia Property Trust
(Parent)
 Columbia Property Trust OP
(the Issuer)
 
Non-
Guarantors
 Consolidating Adjustments Columbia Property Trust
(Consolidated)
Cash flows from operating activities$3,966
 $(46,268) $104,226
 $
 $61,924
Cash Flows From Investing Activities:         
Net proceeds from the sale of real estate
 49,531
 688,100
 
 737,631
Investment in real estate and related assets
 (2,203) (716,093) 
 (718,296)
Investment in unconsolidated joint ventures
 (369,043) 
 
 (369,043)
Distributions in excess of earnings from unconsolidated joint ventures
 1,985
 
 
 1,985
Investments in subsidiaries(8,671) (97,505) 
 106,176
 
Net cash provided by (used in) investing activities(8,671) (417,235) (27,993)
106,176
 (347,723)
Cash Flows From Financing Activities:         
Borrowings, net of fees
 781,731
 
 
 781,731
Repayments
 (331,000) (202,427) 
 (533,427)
Redemptions of common stock(59,462) 
 
 
 (59,462)
Distributions(109,561) 1,342
 104,834
 (106,176) (109,561)
Net cash provided by (used in) financing activities(169,023) 452,073
 (97,593)
(106,176) 79,281
Net decrease in cash and cash equivalents(173,728) (11,430) (21,360)

 (206,518)
Cash and cash equivalents, beginning of period174,420
 16,509
 25,156
 
 216,085
Cash and cash equivalents, end of period$692
 $5,079
 $3,796

$
 $9,567



F-44


Consolidating Statements of Cash Flows (in thousands)
 For the Year Ended December 31, 2016
 Columbia Property Trust
(Parent)
 Columbia Property Trust OP
(the Issuer)
 
Non-
Guarantors
 Consolidating Adjustments Columbia Property Trust
(Consolidated)
Cash flows from operating activities$53,980
 $86,846
 $242,118
 $(189,853) $193,091
Cash Flows From Investing Activities:         
Net proceeds from the sale of real estate(1)

 
 613,732
 
 613,732
Investment in real estate and related assets
 (2,157) (69,750) 
 (71,907)
Investment in unconsolidated joint ventures
 (16,212) 
 
 (16,212)
Distributions from subsidiaries(2)
321,911
 568,480
 
 (890,391) 
Net cash provided by investing activities321,911

550,111

543,982
 (890,391)
525,613
Cash Flows From Financing Activities:         
Borrowings, net of fees(3)

 780,577
 
 
 780,577
Repayments(4)

 (1,051,000) (44,460) 
 (1,095,460)
Prepayments to settle debt and interest rate swap(5)

 (17,921) 
 
 (17,921)
Redemptions of common stock(53,986) 
 
 
 (53,986)
Distributions(6)
(148,474) (347,073) (733,171) 1,080,244
 (148,474)
Net cash used in financing activities(202,460) (635,417) (777,631) 1,080,244
 (535,264)
Net increase in cash and cash equivalents173,431
 1,540
 8,469
 
 183,440
Cash and cash equivalents, beginning of period989
 14,969
 16,687
 
 32,645
Cash and cash equivalents, end of period$174,420
 $16,509
 $25,156
 $
 $216,085
(1)
Net proceeds from the sale of real estate increased (decreased) by $(603.7) million and $603.7 million for the parent and non-guarantors, respectively.
(2)
Distributions from subsidiaries increased (decreased) by $321.9 million, $568.5 million, and $(890.4) million for the parent, issuer, and eliminations, respectively.
(3)
Borrowings, net of fees, increased (decreased) by $(781.4) million and $781.4 million for the parent and issuer, respectively.
(4)
Repayments increased (decreased) by $1,090.0 million, $(1,051.0) million, and $(39.0) million for the parent, issuer, and non-guarantors respectively.
(5)
Prepayments to settle debt and interest rate swap increased (decreased) by $17.9 million and $(17.9) million for the parent and issuer, respectively.
(6)
Distributions (increased) decreased by $(347.1) million, $(733.2) million, and $1,080.3 million, for the issuer, non-guarantors, and eliminations, respectively. The intercompany transfers, net line item is no longer presented based on the changes to the other line items described herein.



F-45


 For the Year Ended December 31, 2015
 Columbia Property Trust
(Parent)
 Columbia Property Trust OP
(the Issuer)
 
Non-
Guarantors
 Consolidating Adjustments Columbia Property Trust
(Consolidated)
Cash flows from operating activities$15,743
 $(50,601) $273,655
 $(15,717) $223,080
Cash Flows From Investing Activities:         
Net proceeds from the sale of real estate(1)

 
 596,734
 
 596,734
Investments in real estate and related assets(2)

 
 (1,167,933) 
 (1,167,933)
Investment in unconsolidated joint ventures
 (5,500) 
 
 (5,500)
Investments in subsidiaries(3)
(4,615) (628,393) 
 633,008
 
Net cash used in investing activities(4,615)
(633,893)
(571,199)
633,008

(576,699)
Cash Flows From Financing Activities:         
Borrowings, net of fees(3)

 2,223,778
 
 
 2,223,778
Repayments
 (1,518,000) (336,512) 
 (1,854,512)
Prepayments to settle debt and interest rate swap
 (1,102) (2,063) 
 (3,165)
Redemptions of common stock(17,057) 
 
 
 (17,057)
Distributions(4)
(112,570) (15,717) 633,008
 (617,291) (112,570)
Net cash provided by (used in) financing activities(129,627) 688,959
 294,433
 (617,291) 236,474
Net increase (decrease) in cash and cash equivalents(118,499) 4,465
 (3,111) 
 (117,145)
Cash and cash equivalents, beginning of period119,488
 10,504
 19,798
 
 149,790
Cash and cash equivalents, end of period$989
 $14,969
 $16,687
 $
 $32,645
(1)
Net proceeds from the sales of real estate increased (decreased) by $(72.4) million, $(524.4) million, and $596.7 million for the parent, issuer, and non-guarantors, respectively.
(2)
Investments in real estate and related assets increased (decrease) by $57.2 million, $1,007.5 million, and $(1,064.7) million for the parent, issuer, and non-guarantors, respectively.
(3)
Investments in subsidiaries increased (decreased) by $1,061.1 million, $(628.4) million, and $(432.7) million for the parent, issuer, and eliminations, respectively.
(4)
Distributions (increased) decreased by $(15.7) million, $633.0 million, and $(617.3) million, for the issuer, non-guarantors, and eliminations, respectively. The intercompany transfers, net line item is no longer presented based on the changes to the other line items described herein.

16.Subsequent Events
Columbia Property Trust has evaluated subsequent events in connection with the preparation of its consolidated financial statements and notes thereto included in this report on Form 10-K and noted the following items in addition to those disclosed elsewhere in this report:
On January 24, 2020, Columbia Property Trust acquired Normandy Real Estate Management, LLC, a developer, operator, and investment manager of office and mixed-use assets in New York, Boston, and Washington, D.C. for approximately $100.0 million, exclusive of transaction and closing costs (the "Normandy Acquisition"). The purchase price for the Normandy Acquisition is comprised of 2 components: an approximately $13.5 million cash payment, and the issuance of 3,264,151 Series A Convertible, Perpetual Preferred Units of Columbia OP with a liquidation preference of $26.50 per unit (the "Preferred OP Units"). The Preferred OP Units are convertible into common units of Columbia OP, which are convertible into shares of Columbia Property Trust's common stock, subject to certain terms and conditions. After giving effect to the Preferred OP Units issued in the Normandy Acquisition, Columbia Property Trust owns approximately 97.2% of the limited partnership interests in Columbia OP.

Columbia Property Trust also notes the following other subsequent events:
On February 7, 2018,2020, the board of directors declared dividends for the first quarter of 2018 in the amount2020 of $0.20$0.21 per share, payable on March 15, 2018,17, 2020, to stockholders of record on March 1, 2018.2, 2020.
On February 1, 2018,January 24, 2020, in connection with the Normandy Acquisition, Columbia Property Trust sold an additional 22.5% interest in University Circleissued 128,399 of time-based award shares of Columbia Property Trust stock and 333 Market Street104,968 of performance-based award restricted stock units to its joint venture partner, Allianz, as described in Note 3, Real Estate Transactions.
Normandy employees that became employees of Columbia Property Trust.
On January 5, 2018,16, 2020, Columbia Property Trust closed on the sale of Cranberry Woods Drive for $180.0 million and anticipates recognizing a gain on sale of real estate assets in the first quarter of 2020.
On January 7, 2020, Columbia Property Trust paid an aggregate amount of $24.0$24.2 million in dividends for the fourth quarter of 20172019 to shareholdersstockholders of record on December 1, 2017.16, 2019.



F-48
F-46


Columbia Property Trust, Inc.
Columbia Property Trust Operating Partnership, L.P.
Schedule III – Real Estate Assets and Accumulated Depreciation and Amortization
December 31, 2019 (in thousands)
Initial CostsCosts Capitalized Subsequent to AcquisitionGross Amount at Which Carried at
December 31, 2019
Accumulated Depreciation and AmortizationDate of Construc- tion
Life on Which Depreciation and Amortization is Computed(b)
DescriptionLocationOwner- ship %Encum-brancesLandBuildings and ImprovementsTotalLandBuildings and Improvements
Total(a)
Date Acquired
80 M Street(c)
Washington, D.C.100 %NaN$26,248  $76,269  $102,517  $6,732  $26,806  $82,443  $109,249  $29,214  20016/29/20040 to 40 years
95 ColumbusJersey City, NJ100 %NaN29,061  141,544  170,605  13,137  29,712  154,030  183,742  72,086  198910/31/20060 to 40 years
Pasadena Corporate ParkPasadena, CA100 %NaN53,099  59,630  112,729  (20,992) 41,604  50,133  91,737  22,463  1965/2000/ 2002/20037/11/20070 to 40 years
Cranberry Woods Drive(c)
Cranberry Township, PA100 %None15,512  173,062  188,574  15,187  15,512  188,249  203,761  58,079  2009/20106/1/20100 to 40 years
221 Main StreetSan Francisco, CA100 %NaN60,509  174,629  235,138  19,871  60,509  194,500  255,009  41,491  19744/22/20140 to 40 years
650 California StreetSan Francisco, CA100 %NaN75,384  240,441  315,825  27,757  75,384  268,198  343,582  49,732  19649/9/20140 to 40 years
315 Park Avenue SouthNew York, NY100 %NaN119,633  249,510  369,143  35,718  119,633  285,228  404,861  38,039  19101/7/20150 to 40 years
116 Huntington AvenueBoston, MA100 %NaN
(d)
—  116,290  116,290  26,670  —  142,960  142,960  25,824  19911/8/20150 to 40 years
229 West 43rd StreetNew York, NY100 %NaN207,233  292,991  500,224  2,226  207,233  295,217  502,450  47,597  1912/1924/ 1932/19478/4/20150 to 40 years
249 West 17th StreetNew York, NY100 %NaN113,149  221,517  334,666  4,354  113,149  225,871  339,020  18,867  1902/190910/11/20170 to 40 years
218 West 18th StreetNew York, NY100 %NaN43,836  139,077  182,913  5,716  43,836  144,793  188,629  14,868  191210/11/20170 to 40 years
149 Madison Avenue(e)
New York, NY100 %NaN59,112  28,989  88,101  22,408  59,112  51,397  110,509  —  (e)11/28/20170 to 40 years
101 Franklin Street(e)
New York, NY92.5 %NaN57,145  149,500  206,645  2,373  57,145  151,873  209,018  —  (e)12/2/20190 to 40 years
201 California StreetSan Francisco, CA100 %NaN77,833  170,754  248,587  3,334  77,833  174,088  251,921  719  194812/9/20190 to 40 years
    TOTAL CONSOLIDATED REAL ESTATE ASSETS(f)
$937,754  $2,234,203  $3,171,957  $164,491  $927,468  $2,408,980  $3,336,448  $418,979  
UNCONSOLIDATED REAL ESTATE ASSETS (presented at 100% of the Joint Venture's Basis)(g):
Market SquareWashington, D.C.51.0 %$325,000  $152,629  $450,757  $603,386  $(15,552) $152,629  $435,205  $587,834  $59,629  199010/28/2015 0 to 40 years
University CircleEast Palo Alto, CA55.0 %NaN27,493  278,288  305,781  (96,941) 27,756  181,084  208,840  13,591  2001/2002/ 20037/6/20170 to 40 years
333 Market StreetSan Francisco, CA55.0 %NaN114,483  292,840  407,323  (41,230) 114,483  251,610  366,093  20,680  19797/6/20170 to 40 years
114 Fifth AvenueNew York, NY49.5 %NaN
(h)
—  383,694  383,694  2,301  —  385,995  385,995  52,714  19107/6/20170 to 40 years
1800 M StreetWashington, D.C.55.0 %NaN125,735  272,353  398,088  35,285  125,735  307,638  433,373  32,459  197510/11/20170 to 40 years
799 Broadway(e)
New York, NY49.7 %$113,200  145,991  4,865  150,856  47,001  145,991  51,866  197,857  —  (e)10/3/20180 to 40 years
TOTAL UNCONSOLIDATED REAL ESTATE ASSETS$566,331  $1,682,797  $2,249,128  $(69,136) $566,594  $1,613,398  $2,179,992  $179,073  

(a)The aggregate cost of consolidated land and buildings and improvements for federal income tax purposes is approximately $3.475 billion.
(b)Columbia Property Trust assets are depreciated or amortized using the straight-line method over the useful lives of the assets by class. Generally, tenant improvements are amortized over the shorter of economic life or lease term, lease intangibles are amortized over the respective lease term, building improvements are depreciated over 5-25 years, and buildings are depreciated over 40 years.
(c)80 M Street and Cranberry Woods Drive are owned directly by Columbia Property Trust, Inc.; therefore, they are not consolidated into Columbia OP.
(d)116 Huntington Avenue is owned subject to a long-term, pre-paid ground lease.
(e)101 Franklin Street, 149 Madison, and 799 Broadway are under development.
(f)Consolidated real estate assets excludes $3.2 million of corporate assets.
(g)The aggregate cost of 100% of the land and buildings and improvements, net of debt, held by unconsolidated joint ventures for federal income tax purposes is approximately $1.834 billion.
(h)Property is owned subject to a long-term ground lease.
Columbia Property Trust, Inc.
Schedule III – Real Estate Assets and Accumulated Depreciation and Amortization
December 31, 2017 (in thousands)
        Initial Costs Costs Capitalized Subsequent to Acquisition Gross Amount at Which Carried at
December 31, 2017
 Accumulated Depreciation and Amortization Date of Construction   
Life on Which Depreciation and Amortization is Computed(b)
Description Location Owner- ship % Encum-brances Land Buildings and Improvements Total  Land Buildings and Improvements 
Total(a)
   Date Acquired 
ONE & THREE GLENLAKE Atlanta, GA 100% $23,716
(c) 
$13,363
 $155,465
 $168,828
 $2,429
 $13,989
 $157,268
 $171,257
 $49,203
 2003/2008 6/25/2004/ 7/31/2008 0 to 40 years
80 M STREET Washington, D.C. 100% None 26,248
 76,269
 102,517
 7,080
 26,806
 82,791
 109,597
 23,439
 2001 6/29/2004 0 to 40 years
263 SHUMAN BOULEVARD Naperville, IL 100% $49,000
 7,142
 41,535
 48,677
 (3,344) 7,233
 38,100
 45,333
 15,146
 1986 7/20/2006 0 to 40 years
95 COLUMBUS Jersey City, NJ 100% None
 29,061
 141,544
 170,605
 13,056
 29,712
 153,949
 183,661
 60,366
 1989 10/31/2006 0 to 40 years
PASADENA CORPORATE PARK Pasadena, CA 100% None
 53,099
 59,630
 112,729
 (893) 53,099
 58,737
 111,836
 17,944
 1965/2000/ 2002/2003 7/11/2007 0 to 40 years
222 EAST 41ST STREET New York City, NY 100% None
(d) 

 324,520
 324,520
 (25,359) 
 299,161
 299,161
 67,336
 2001 8/17/2007 0 to 45 years
LINDBERGH CENTER Atlanta, GA 100% None
(d) 

 262,468
 262,468
 3,252
 
 265,720
 265,720
 77,417
 2002 7/1/2008 0 to 40 years
CRANBERRY WOODS DRIVE Cranberry Township, PA 100% None
 15,512
 173,062
 188,574
 6,579
 15,512
 179,641
 195,153
 46,136
 2009/2010 6/1/2010 0 to 40 years
221 MAIN STREET San Francisco, CA 100% None
 60,509
 174,629
 235,138
 12,927
 60,509
 187,556
 248,065
 27,105
 1974 4/22/2014 0 to 40 years
650 CALIFORNIA STREET San Francisco, CA 100% None
 75,384
 240,441
 315,825
 13,978
 75,384
 254,419
 329,803
 28,925
 1964 9/9/2014 0 to 40 years
315 PARK AVENUE SOUTH New York, NY 100% None
 119,633
 249,510
 369,143
 13,130
 119,633
 262,640
 382,273
 19,204
 1910 1/7/2015 0 to 40 years
116 HUNTINGTON AVENUE Boston, MA 100% None
(e) 

 116,290
 116,290
 47,662
 
 163,952
 163,952
 16,640
 1991 1/8/2015 0 to 40 years
229 WEST 43RD STREET New York, NY 100% None
 207,233
 292,991
 500,224
 (553) 207,233
 292,438
 499,671
 30,119
 1912/1924/ 1932/1947 8/4/2015 0 to 40 years
245-249 WEST 17TH STREET New York, NY 100% None
 113,149
 221,517
 334,666
 
 113,150
 221,516
 334,666
 2,210
 1902/1909 10/11/2017 0 to 40 years
218 WEST 18TH STREET New York, NY 100% None
 43,836
 139,077
 182,913
 
 43,836
 139,077
 182,913
 1,437
 1912 10/11/2017 0 to 40 years
149 MADISON AVENUE New York, NY 100% None
 59,112
 28,989
 88,101
 1,132
 59,112
 30,121
 89,233
 
 1916 11/28/2017 0 to 40 years
    TOTAL CONSOLIDATED REAL ESTATE ASSETS(f)
 $823,281
 $2,697,937
 $3,521,218
 $91,076
 $825,208
 $2,787,086
 $3,612,294
 $482,627
      
UNCONSOLIDATED REAL ESTATE ASSETS (presented at 100% of the Joint Venture's Basis)(g):
                  
MARKET SQUARE Washington, D.C. 51.0% $325,000
 $152,629
 $450,757
 $603,386
 $(41,591) $152,629
 $409,166
 $561,795
 $29,483
 1990 10/28/2015 0 to 40 years
UNIVERSITY CIRCLE East Palo Alto, CA 77.5% None
 27,493
 278,288
 305,781
 (99,466) 27,757
 178,558
 206,315
 2,839
 2001/2002/ 2003 7/6/2017 0 to 40 years
333 MARKET STREET San Francisco, CA 77.5% None
 114,483
 292,840
 407,323
 (41,229) 114,484
 251,610
 366,094
 4,038
 1979 7/6/2017 0 to 40 years
114 FIFTH AVE New York, NY 49.5% None
 
 383,694
 383,694
 1,824
 
 385,518
 385,518
 27,165
 1910 7/6/2017 0 to 40 years
1800 M STREET Washington, D.C. 55.0% None
 125,735
 272,353
 398,088
 31,485
 125,735
 303,838
 429,573
 3,863
 1975 10/11/2017 0 to 40 years
TOTAL UNCONSOLIDATED REAL ESTATE ASSETS 420,340
 $1,677,932
 $2,098,272
 $(148,977) $420,605
 $1,528,690
 $1,949,295
 $67,388
      
(a)
The aggregate cost of consolidated land and buildings and improvements for federal income tax purposes is approximately $3.933 billion.
(b)
Columbia Property Trust assets are depreciated or amortized using the straight-line method over the useful lives of the assets by class. Generally, tenant improvements are amortized over the shorter of economic life or lease term, lease intangibles are amortized over the respective lease term, building improvements are depreciated over 5-25 years, and buildings are depreciated over 40-45 years.
(c)
The One Glenlake Building is subject to a $23.7 million mortgage note. As a result of the acquisition of the Three Glenlake Building, Columbia Property Trust acquired investments in bonds and certain obligations under capital leases in the amount of $120.0 million.
(d)
Property is owned subject to a long-term ground lease.
(e)
116 Huntington Avenue is owned subject to a long-term, pre-paid ground lease.
(f)
Consolidated real estate assets excludes $3.2 million of corporate assets.
(g)
The aggregate cost of 100% of the land and buildings and improvements, net of debt, held by unconsolidated joint ventures for federal income tax purposes is approximately $2.025 billion.



S-1


Columbia Property Trust, Inc.
Columbia Property Trust Operating Partnership, L.P.
Schedule III – Real Estate Assets and Accumulated Depreciation and Amortization
(in thousands)


For the Years Ended December 31,
201920182017
Real Estate:
Balance at beginning of year$3,345,301  $3,612,294  $4,243,531  
Additions to/improvements of real estate531,336  87,398  698,567  
Sale/transfer of real estate(456,331) (313,683) (1,285,915) 
(1)
Impairment of real estate(43,941) (30,812) —  
Write-offs of building and tenant improvements(270) (1,464) (3,087) 
Write-offs of intangible assets(2)
(34,039) (6,131) (14,432) 
Write-offs of fully depreciated assets(5,608) (2,301) (26,370) 
Balance at end of year$3,336,448  $3,345,301  $3,612,294  
Accumulated Depreciation and Amortization:
Balance at beginning of year$487,485  $482,627  $729,025  
Depreciation and amortization expense90,926  98,858  97,732  
Sale/transfer of real estate(149,708) (84,965) (302,157) 
(1)
Write-offs of tenant improvements(228) (603) (1,406) 
Write-offs of intangible assets(2)
(3,888) (6,131) (14,197) 
Write-offs of fully depreciated assets(5,608) (2,301)��(26,370) 
Balance at end of year$418,979  $487,485  $482,627  
(1)Includes the transfer of 100% of both University Circle and 333 Market Street to unconsolidated joint ventures, in which Columbia Property Trust currently owned a 55.0% interest as of December 31, 2019.
(2)Consists of write-offs of intangible lease assets related to lease restructurings, amendments, and terminations.


 For the Years Ended December 31, 
 2017 2016 2015
Real Estate:       
Balance at beginning of year$4,243,531
  $4,948,605
 $5,050,482
 
Additions to/improvements of real estate698,567
  41,848
 1,162,068
 
Sale/transfer of real estate(1,285,915)
(1) 
 (673,164) (1,188,083)
(2) 
Write-offs of building and tenant improvements(3,087)  (5,559) (1,552) 
Write-offs of intangible assets(3)
(14,432)  (30,435) (12,614) 
Write-offs of fully depreciated assets(26,370)  (37,764) (61,696) 
Balance at end of year$3,612,294
  $4,243,531
 $4,948,605
 
Accumulated Depreciation and Amortization:       
Balance at beginning of year$729,025
  $863,724
 $973,920
 
Depreciation and amortization expense97,732
  140,823
 183,492
 
Sale/transfer of real estate(302,157)
(1) 
 (203,248) (221,481)
(2) 
Write-offs of tenant improvements(1,406)  (4,336) (948) 
Write-offs of intangible assets(3)
(14,197)  (30,174) (9,563) 
Write-offs of fully depreciated assets(26,370)  (37,764) (61,696) 
Balance at end of year$482,627
  $729,025
 $863,724
 
(1)
Includes the transfer of 100% of University Circle and 333 Market Street to unconsolidated joint ventures, in which Columbia Property Trust currently owns a 77.5% interest.
(2)
Includes the transfer of 100% of the Market Square Buildings to an unconsolidated joint venture, in which Columbia Property Trust currently owns a 51% interest.
(3)
Consists of write-offs of intangible lease assets related to lease restructurings, amendments, and terminations.




S-2