UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

__________________________________

FORM 10-Q

__________________________________

(Mark One)



x	Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

for the quarterly period ended ~~September~~June 30, ~~2016~~2017



o	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.

(Exact name of registrant as specified in its charter)



Maryland		20-0068852
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)

One Glenlake Parkway, Suite 1200

Atlanta, GA 30328

(Address of principal executive offices)

(Zip Code)

(404) 465-2200

(Registrant's telephone number, including area code)

(Former name, former address, and former fiscal year, if changed since last report)

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 whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of "large accelerated filer", "accelerated filer", ~~and~~ "smaller reporting company", and "emerging growth company" in Rule 12b-2 of the Exchange Act (check one).



Large accelerated filer	x	Accelerated filer	o
Non-accelerated filer	o (Do not check if a smaller reporting company)	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 Exchange Act).

Yes o No x

Number of shares outstanding of the registrant's

only class of common stock, as of ~~October~~July 24, ~~2016: 123,478,809~~2017: 121,235,494 shares

Table of Contents

FORM 10-Q

COLUMBIA PROPERTY TRUST, INC.

TABLE OF CONTENTS



PART I. FINANCIAL INFORMATION		Page No.

Item 1.	Condensed Consolidated Financial Statements	Page 4

	Consolidated Balance Sheets as of ~~September~~June 30, ~~2016~~2017 (unaudited) and December 31, ~~2015~~2016 (unaudited)	Page 5

	Consolidated Statements of Operations for the Three and ~~Nine~~Six Months Ended ~~September~~June 30, ~~2016~~2017 (unaudited) and ~~2015~~2016 (unaudited)	Page 6

	Consolidated Statements of Comprehensive Income for the Three and ~~Nine~~Six Months Ended ~~September~~June 30, ~~2016~~2017 (unaudited) and ~~2015~~2016 (unaudited)	Page 7

	Consolidated Statements of Equity for the ~~Nine~~Six Months Ended ~~September~~June 30, ~~2016~~2017 (unaudited) and ~~2015~~2016 (unaudited)	Page 8

	Consolidated Statements of Cash Flows for the ~~Nine~~Six Months Ended ~~September~~June 30, ~~2016~~2017 (unaudited) and ~~2015~~2016 (unaudited)	Page 9

	Condensed Notes to Consolidated Financial Statements (unaudited)	Page 10

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	Page 3335

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	Page 4546

Item 4.	Controls and Procedures	Page 4647

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	Page 4748

Item 1A.	Risk Factors	Page 4748

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	Page 4748

Item 3.	Defaults Upon Senior Securities	Page 4748

Item 4.	Mine Safety Disclosures	Page 4748

Item 5.	Other Information	Page 4748

Item 6.	Exhibits	Page 4748

Page 2

Table of Contents

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained in this Quarterly Report on Form 10-Q of Columbia Property Trust, Inc. ("Columbia Property Trust," "the Company," "we," "our," or "us") other than historical facts may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend for all such forward-looking statements to be covered by the applicable safe harbor provisions for forward-looking statements contained in those acts. Such statements include, in particular, statements about our plans, strategies, and prospects and are subject to certain risks and uncertainties, including known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of our performance in future periods. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as "may," "will," "expect," "intend," "anticipate," "estimate," "believe," "continue," or other similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date this report is filed with the U.S. Securities and Exchange Commission ("SEC"). We make no representations or warranties (express or implied) about the accuracy of any such forward-looking statements contained in this Form 10-Q, and we do not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Any such forward-looking statements are subject to risks, uncertainties, and other factors and are based on a number of assumptions involving judgments with respect to, among other things, future economic, competitive, and market conditions, all of which are difficult or impossible to predict accurately. To the extent that our assumptions differ from actual conditions, our ability to accurately anticipate results expressed in such forward-looking statements, including our ability to generate positive cash flow from operations, make distributions to stockholders, and maintain the value of our real estate properties, may be significantly hindered. See Item 1A in Columbia Property Trust's Annual Report on Form 10-K for the year ended December 31, ~~2015~~2016 for a discussion of some of the risks and uncertainties that could cause actual results to differ materially from those presented in our forward-looking statements. The risk factors described in our Annual Report are not the only ones we face, but do represent those risks and uncertainties that we believe are material to us. Additional risks and uncertainties not currently known to us or that we currently deem immaterial may also harm our business.

Page 3

Table of Contents


PART I.	FINANCIAL INFORMATION


ITEM 1.	CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The information furnished in the accompanying consolidated balance sheets and related consolidated statements of operations, comprehensive income, equity, and cash flows, reflects all normal and recurring adjustments that are, in management's opinion, necessary for a fair and consistent presentation of the aforementioned financial statements. The accompanying consolidated financial statements should be read in conjunction with the condensed notes to Columbia Property Trust's financial statements and Management's Discussion and Analysis of Financial Condition and Results of Operations included in this Quarterly Report on Form 10-Q, and with audited consolidated financial statements and the related notes for the year ended December 31, ~~2015~~2016. Columbia Property Trust's results of operations for the three and ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 are not necessarily indicative of the operating results expected for the full year.

Page 4

Table of Contents

COLUMBIA PROPERTY TRUST, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per-share amounts)


	(Unaudited)						(Unaudited)
	September 30, 2016			December 31, 2015			June 30, 2017			December 31, 2016
Assets:
Real estate assets, at cost:
Land	$	787,456		$	896,467		$	751,351		$	751,351
Buildings and improvements, less accumulated depreciation of $500,583 and $613,639, as of September 30, 2016 and December 31, 2015, respectively	2,371,273			2,897,431
Intangible lease assets, less accumulated amortization of $141,451 and $250,085, as of September 30, 2016 and December 31, 2015, respectively	204,200			259,136
Buildings and improvements, less accumulated depreciation of $471,029 and $435,457, as of June 30, 2017 and December 31, 2016, respectively							2,117,880			2,121,150
Intangible lease assets, less accumulated amortization of $99,910 and $112,777, as of June 30, 2017 and December 31, 2016, respectively							182,428			193,311
Construction in progress	28,888			31,847			49,069			36,188
Real estate assets held for sale, less accumulated depreciation and amortization of $111,425 as of September 30, 2016	238,876			—
Real estate assets held for sale, less accumulated depreciation and amortization of $180,791, as of December 31, 2016							—			412,506
Total real estate assets	3,630,693			4,084,881			3,100,728			3,514,506
Investment in unconsolidated joint venture	125,605			118,695			125,584			127,346
Cash and cash equivalents	190,856			32,645			506,538			216,085
Tenant receivables, net of allowance for doubtful accounts of $35 and $8 as of September 30, 2016 and December 31, 2015, respectively	6,366			11,670
Tenant receivables, net of allowance for doubtful accounts of $31 as of December 31, 2016							4,002			7,163
Straight-line rent receivable	70,186			109,062			77,875			64,811
Prepaid expenses and other assets	24,885			35,848			39,815			24,275
Intangible lease origination costs, less accumulated amortization of $81,735 and $181,482, as of September 30, 2016 and December 31, 2015, respectively	58,645			77,190
Deferred lease costs, less accumulated amortization of $33,729 and $40,817, as of September 30, 2016 and December 31, 2015, respectively	60,383			88,127
Intangible lease origination costs, less accumulated amortization of $68,771 and $74,578, as of June 30, 2017 and December 31, 2016, respectively							48,586			54,279
Deferred lease costs, less accumulated amortization of $25,838 and $22,753, as of June 30, 2017 and December 31, 2016, respectively							129,849			125,799
Investment in development authority bonds	120,000			120,000			120,000			120,000
Other assets held for sale, less accumulated amortization of $23,125 as of September 30, 2016	32,306			—
Other assets held for sale, less accumulated amortization of $34,152, as of December 31, 2016							—			45,529
Total assets	$	4,319,925		$	4,678,118		$	4,152,977		$	4,299,793
Liabilities:
Line of credit and notes payable, net of unamortized deferred financing costs of $3,406 and $4,492, as of September 30, 2016 and December 31, 2015, respectively	$	821,586		$	1,130,571
Bonds payable, net of discounts of $1,709 and $1,020 and unamortized deferred financing costs of $5,528 and $3,721, as of September 30, 2016 and December 31, 2015, respectively	692,763			595,259
Line of credit and notes payable, net of unamortized deferred financing costs of $2,614 and $3,136, as of June 30, 2017 and December 31, 2016, respectively							$	646,160		$	721,466
Bonds payable, net of discounts of $1,574 and $1,664 and unamortized deferred financing costs of $5,062 and $5,364, as of June 30, 2017 and December 31, 2016, respectively							693,364			692,972
Accounts payable, accrued expenses, and accrued capital expenditures	81,617			98,759			140,151			131,028
Dividends payable	—			37,354			—			36,727
Deferred income	20,411			24,814			19,392			19,694
Intangible lease liabilities, less accumulated amortization of $46,480 and $81,496, as of September 30, 2016 and December 31, 2015, respectively	36,239			57,167
Obligations under capital leases	120,000			120,000
Liabilities held for sale, less accumulated amortization $1,210 as of September 30, 2016	15,644			—
Intangible lease liabilities, less accumulated amortization of $39,939 and $44,564, as of June 30, 2017 and December 31, 2016, respectively							29,067			33,375
Obligations under capital lease							120,000			120,000
Liabilities held for sale, less accumulated amortization of $1,239, as of December 31, 2016							—			41,763
Total liabilities	1,788,260			2,063,924			1,648,134			1,797,025
Commitments and Contingencies (Note 7)	—			—			—			—
Equity:
Common stock, $0.01 par value, 225,000,000 shares authorized, 123,471,082 and 124,363,073 shares issued and outstanding as of September 30, 2016 and December 31, 2015, respectively	1,234			1,243
Common stock, $0.01 par value, 225,000,000 shares authorized, 121,235,494 and 122,184,193 shares issued and outstanding, as of June 30, 2017 and December 31, 2016, respectively							1,211			1,221
Additional paid-in capital	4,565,651			4,588,303			4,513,922			4,538,912
Cumulative distributions in excess of earnings	(2,027,155		)	(1,972,916		)	(2,009,405		)	(2,036,482		)
Cumulative other comprehensive loss	(8,065		)	(2,436		)	(885		)	(883		)
Total equity	2,531,665			2,614,194			2,504,843			2,502,768
Total liabilities and equity	$	4,319,925		$	4,678,118		$	4,152,977		$	4,299,793

See accompanying notes.

Page 5

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COLUMBIA PROPERTY TRUST, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per-share amounts)


	(Unaudited)						(Unaudited)						(Unaudited)						(Unaudited)
	Three Months Ended September 30,						Nine Months Ended September 30,						Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015			2017			2016			2017			2016
Revenues:
Rental income	$	87,561		$	107,011		$	280,714		$	332,736		$	67,121		$	93,567		$	138,294		$	193,153
Tenant reimbursements	17,090			22,627			55,551			77,395			6,972			18,708			15,556			38,461
Hotel income	6,270			6,941			17,484			18,898			—			6,551			1,339			11,214
Other property income	2,345			1,140			14,026			4,357			764			9,104			1,824			11,681
	113,266			137,719			367,775			433,386			74,857			127,930			157,013			254,509
Expenses:
Property operating costs	39,101			46,538			120,679			144,375			21,831			40,242			45,936			81,578
Hotel operating costs	4,946			5,331			14,315			15,069			9			5,038			2,085			9,369
Asset and property management fees	387			472			1,058			1,372			260			341			529			671
Depreciation	26,778			32,441			84,517			100,261			20,423			28,450			42,028			57,739
Amortization	11,895			20,276			42,902			67,233			8,191			14,932			17,648			31,007
General and administrative	7,467			6,797			25,718			21,921			9,201			7,761			17,969			18,251
Acquisition expenses	—			1,680			—			3,675
	90,574			113,535			289,189			353,906			59,915			96,764			126,195			198,615
Real estate operating income	22,692			24,184			78,586			79,480			14,942			31,166			30,818			55,894
Other income (expense):
Interest expense	(17,138		)	(22,012		)	(52,415		)	(66,261		)	(14,462		)	(17,380		)	(29,577		)	(35,277		)
Interest and other income	1,839			1,808			5,452			5,448			2,477			1,808			4,827			3,613
Loss on interest rate swaps	—			(1,102		)	—			(1,110		)
Loss on early extinguishment of debt	(18,905		)	(2,672		)	(18,997		)	(3,149		)	—			(92		)	(45		)	(92		)
	(34,204		)	(23,978		)	(65,960		)	(65,072		)	(11,985		)	(15,664		)	(24,795		)	(31,756		)
Income (loss) before income taxes, unconsolidated joint venture, and gains on sales of real estate	(11,512		)	206			12,626			14,408
Income tax expense	(65		)	(245		)	(387		)	(140		)
Income before income taxes, unconsolidated joint ventures, and sales of real estate:													2,957			15,502			6,023			24,138
Income tax benefit (expense)													(7		)	(245		)	381			(322		)
Loss from unconsolidated joint venture	(1,937		)	—			(5,441		)	—			(1,817		)	(1,952		)	(3,702		)	(3,504		)
Income (loss) before gains on sales of real estate	(13,514		)	(39		)	6,798			14,268
Gains on sales of real estate	50,412			20,182			50,083			20,182
Income before sales of real estate:													1,133			13,305			2,702			20,312
Gain (loss) on sales of real estate assets													—			(19		)	73,153			(329		)
Net income	$	36,898		$	20,143		$	56,881		$	34,450		$	1,133		$	13,286		$	75,855		$	19,983
Per-share information – basic:
Net income	$	0.30		$	0.16		$	0.46		$	0.28		$	0.01		$	0.11		$	0.62		$	0.16
Weighted-average common shares outstanding – basic	123,215			124,359			123,271			124,359			121,534			123,206			121,768			123,299
Per-share information – diluted:
Net income	$	0.30		$	0.16		$	0.46		$	0.28		$	0.01		$	0.11		$	0.62		$	0.16
Weighted-average common shares outstanding – diluted	123,350			124,460			123,348			124,445			121,909			123,294			122,115			123,357
Dividends per share	$	0.30		$	0.30		$	0.90		$	0.90		$	0.20		$	0.30		$	0.40		$	0.60

See accompanying notes.

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COLUMBIA PROPERTY TRUST, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)


	(Unaudited)					(Unaudited)						(Unaudited)						(Unaudited)
	Three Months Ended September 30,					Nine Months Ended September 30,						Three Months Ended June 30,						Six Months Ended June 30,
	2016		2015			2016			2015			2017			2016			2017			2016
Net income	$	36,898	$	20,143		$	56,881		$	34,450		$	1,133		$	13,286		$	75,855		$	19,983
Settlement of interest rate swap	—		1,102			—			1,102
Market value adjustments to interest rate swap	1,250		(4,147		)	(5,629		)	(3,552		)	(636		)	(2,022		)	(2		)	(6,879		)
Comprehensive income	$	38,148	$	17,098		$	51,252		$	32,000		$	497		$	11,264		$	75,853		$	13,104

See accompanying notes.

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COLUMBIA PROPERTY TRUST, INC.

CONSOLIDATED STATEMENTS OF EQUITY

FOR THE ~~NINE~~SIX MONTHS ENDED ~~SEPTEMBER~~JUNE 30, ~~2016~~2017 AND ~~2015~~2016 (UNAUDITED)

(in thousands, except per-share amounts)

Equity
Common Stock
Additional
Paid-In
Capital

Cumulative
Distributions
in Excess of
Earnings

Cumulative
Other
Comprehensive
Loss

Total
Equity
Shares Amount
Balance, December 31, 2015 124,363
$ 1,243
$ 4,588,303
$ (1,972,916 ) $ (2,436 ) $ 2,614,194
Repurchases of common stock (1,105 ) (11 ) (24,989 ) —
—
(25,000 )
Common stock issued to employees and directors, and amortized (net of income tax witholdings) 213
2
2,337
—
—
2,339
Distributions to common stockholders ($0.90 per share) —
—
—
(111,120 ) —
(111,120 )
Net income —
—
—
56,881
—
56,881
Market value adjustment to interest rate swap —
—
—
—
(5,629 ) (5,629 )
Balance, September 30, 2016 123,471
$ 1,234
$ 4,565,651
$ (2,027,155 ) $ (8,065 ) $ 2,531,665



	Common Stock					Additional Paid-In Capital			Cumulative Distributions in Excess of Earnings			Cumulative Other Comprehensive Loss			Total Equity
	Shares		Amount			Additional Paid-In Capital			Cumulative Distributions in Excess of Earnings			Cumulative Other Comprehensive Loss			Total Equity
Balance, December 31, 2016	122,184		$	1,221		$	4,538,912		$	(2,036,482	)	$	(883	)	$	2,502,768
Repurchases of common stock	(1,252	)	(13		)	(27,488		)	—			—			(27,501		)
Common stock issued to employees and directors, and amortized (net of income tax withholdings)	303		3			2,498			—			—			2,501
Distributions to common stockholders ($0.40 per share)	—		—			—			(48,778		)	—			(48,778		)
Net income	—		—			—			75,855			—			75,855
Market value adjustment to interest rate swap	—		—			—			—			(2		)	(2		)
Balance, June 30, 2017	121,235		$	1,211		$	4,513,922		$	(2,009,405	)	$	(885	)	$	2,504,843

Equity
Common Stock
Additional
Paid-In
Capital

Cumulative
Distributions
in Excess of
Earnings

Cumulative
Other
Comprehensive
Income (Loss)

Total
Equity
Shares Amount
Balance, December 31, 2014 124,973
$ 1,249
$ 4,601,808
$ (1,867,611 ) $ (1,968 ) $ 2,733,478
Repurchases of common stock (570 ) (5 ) (12,802 ) —
—
(12,807 )
Common stock issued to employees and directors, and amortized (net of income tax witholdings) 107
1
2,198
—
—
2,199
Distributions to common stockholders ($0.90 per share) —
—
—
(112,570 ) —
(112,570 )
Net income —
—
—
34,450
—
34,450
Settlement of interest rate swap —
—
—
—
1,102
1,102
Market value adjustment to interest rate swap —
—
—
—
(3,552 ) (3,552 )
Balance, September 30, 2015 124,510
$ 1,245
$ 4,591,204
$ (1,945,731 ) $ (4,418 ) $ 2,642,300



	Common Stock					Additional Paid-In Capital			Cumulative Distributions in Excess of Earnings			Cumulative Other Comprehensive Loss			Total Equity
	Shares		Amount			Additional Paid-In Capital			Cumulative Distributions in Excess of Earnings			Cumulative Other Comprehensive Loss			Total Equity
Balance, December 31, 2015	124,363		$	1,243		$	4,588,303		$	(1,972,916	)	$	(2,436	)	$	2,614,194
Repurchases of common stock	(1,105	)	(11		)	(24,989		)	—			—			(25,000		)
Common stock issued to employees and directors, and amortized (net of income tax withholdings)	206		2			1,415			—			—			1,417
Distributions to common stockholders ($0.60 per share)	—		—			—			(74,079		)	—			(74,079		)
Net income	—		—			—			19,983			—			19,983
Market value adjustment to interest rate swap	—		—			—			—			(6,879		)	(6,879		)
Balance, June 30, 2016	123,464		$	1,234		$	4,564,729		$	(2,027,012	)	$	(9,315	)	$	2,529,636

See accompanying notes.

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COLUMBIA PROPERTY TRUST, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)


	(Unaudited)						(Unaudited)
	Nine Months Ended September 30,						Six Months Ended June 30,
	2016			2015			2017			2016
Cash Flows from Operating Activities:
Net income	$	56,881		$	34,450		$	75,855		$	19,983
Adjustments to reconcile net income to net cash provided by operating activities:
Straight-line rental income	(15,470		)	(11,300		)	(12,463		)	(16,622		)
Depreciation	84,517			100,261			42,028			57,739
Amortization	39,271			59,880			16,789			28,057
Noncash interest expense	2,765			3,138			1,491			1,927
Loss on early extinguishment of debt	18,997			3,149			45			92
Gain on interest rate swaps	—			(1,532		)
Loss from unconsolidated joint venture	5,441			—			3,702			3,504
Gains on sales of real estate	(50,083		)	(20,182		)
(Gain) loss on sales of real estate assets							(73,153		)	329
Stock-based compensation expense	3,512			2,925			3,953			2,595
Changes in assets and liabilities, net of acquisitions:
Decrease (increase) in tenant receivables, net	4,646			(3,205		)
Decrease in prepaid expenses and other assets	5,776			377
Increase (decrease) in accounts payable and accrued expenses	(3,799		)	6,539
Increase (decrease) in deferred income	(2,750		)	479
Net cash provided by operating activities	149,704			174,979
Changes in assets and liabilities, net of acquisitions and dispositions:
Decrease in tenant receivables, net							3,712			2,035
Increase in prepaid expenses and other assets							(1,024		)	(27		)
Decrease in accounts payable and accrued expenses							(20,456		)	(9,191		)
Decrease in deferred income							(4,516		)	(983		)
Net cash provided by operating activities							35,963			89,438
Cash Flows from Investing Activities:
Net proceeds from the sale of real estate	482,089			422,125
Real estate acquisitions	—			(1,062,031		)
Net proceeds from the sales of real estate							504,660			159,387
Prepaid earnest money and transaction costs							(12,341		)	—
Capital improvements	(34,447		)	(64,086		)	(35,090		)	(22,792		)
Deferred lease costs paid	(19,713		)	(15,403		)	(10,432		)	(13,692		)
Investments in unconsolidated joint venture	(12,351		)	—			(1,940		)	(8,728		)
Net cash provided by (used in) investing activities	415,578			(719,395		)
Net cash provided by investing activities							444,857			114,175
Cash Flows from Financing Activities:
Financing costs paid	(3,111		)	(9,607		)	(70		)	(139		)
Prepayments to settle debt and interest rate swap	(17,921		)	(3,165		)
Proceeds from lines of credit and notes payable	435,000			1,854,000			—			215,000
Repayments of lines of credit and notes payable	(745,070		)	(1,625,187		)	(75,830		)	(289,697		)
Proceeds from issuance of bonds payable	348,691			349,507
Repayment of bonds payable	(250,000		)	—
Distributions paid to stockholders	(148,474		)	(112,570		)	(85,505		)	(111,433		)
Repurchases of common stock	(26,186		)	(13,529		)
Net cash provided by (used in) financing activities	(407,071		)	439,449
Redemptions of common stock							(28,962		)	(26,186		)
Net cash used in financing activities							(190,367		)	(212,455		)
Net increase (decrease) in cash and cash equivalents	158,211			(104,967		)	290,453			(8,842		)
Cash and cash equivalents, beginning of period	32,645			149,790			216,085			32,645
Cash and cash equivalents, end of period	$	190,856		$	44,823		$	506,538		$	23,803

See accompanying notes.

Page 9

Table of Contents

COLUMBIA PROPERTY TRUST, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

~~SEPTEMBER~~JUNE 30, ~~2016~~2017

(unaudited)


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. Columbia Property Trust is the general partner and sole owner of Columbia Property Trust OP and possesses full legal control and authority over its operations. Columbia Property Trust OP acquires, develops, owns, leases, and operates real properties directly, through wholly owned subsidiaries, or through unconsolidated joint ventures. ~~References~~Unless otherwise noted, references to Columbia Property Trust, "we," "us," or "our" herein shall include Columbia Property Trust and all subsidiaries of Columbia Property Trust, direct and ~~indirect, and any unconsolidated joint ventures.~~indirect.

Columbia Property Trust typically invests in high-quality, income-generating office properties. As of ~~September~~June 30, ~~2016,~~2017, Columbia Property Trust owned ~~24 office~~15 operating properties, ~~and one hotel,~~ containing approximately ~~11.6~~7.8 million square feet of commercial space, located primarily in ~~11 states~~New York, San Francisco, Washington, D.C. and ~~the District of Columbia.~~Atlanta. All of the properties are wholly owned, except for one property, which is owned through an unconsolidated joint venture, as described in Note 4, Unconsolidated Joint Venture. As of ~~September~~June 30, ~~2016,~~2017, the ~~office~~ properties, including 51% of the Market Square ~~Joint Venture, in~~buildings, which Columbia Property Trust owns ~~a 51% interest,~~through an unconsolidated joint venture, were approximately ~~90.7% leased, excluding the 9127 South Jamaica Street building, which was subsequently~~95.3% leased. On July 6, 2017, Columbia Property Trust contributed two of its San Francisco properties to joint ventures and sold ~~on October 12, 2016 (see~~a 22.5% interest in each joint venture, and acquired a 49.5% interest in a property in Manhattan through another joint venture. See Note 3, Real Estate ~~Transactions).~~Transactions, for additional information.


2.	Summary of Significant Accounting Policies

Basis of Presentation

The consolidated financial statements of Columbia Property Trust have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"), including the instructions to Form 10-Q and Article 10 of Regulation S-X, and do not include all of the information and footnotes required by U.S. generally accepted accounting principles ("GAAP") for complete financial statements. In the opinion of management, the statements for ~~these~~the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair and consistent presentation of the results for such periods. Results for these interim periods are not necessarily indicative of a full year's results. Columbia Property Trust's consolidated financial statements include the accounts of Columbia Property Trust, Columbia Property Trust OP, and any variable interest entity in which Columbia Property Trust or Columbia Property Trust OP was deemed the primary beneficiary. With respect to entities that are not variable interest entities, Columbia Property Trust's consolidated financial statements also include the accounts of any entity in which Columbia Property Trust, Columbia Property Trust OP, or their subsidiaries own a controlling financial interest and any limited partnership in which Columbia Property Trust, Columbia Property Trust OP, or their subsidiaries own a controlling general partnership interest. All intercompany balances and transactions have been eliminated in consolidation. For further information, refer to the financial statements and footnotes included in Columbia Property Trust's Annual Report on Form 10-K for the year ended December 31, ~~2015~~2016 (the "~~2015~~2016 Form 10-K").

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 ~~("ASC")~~ 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, under current market conditions. While 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 or 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.

Page 10

Real Estate Assets

Columbia Property Trust is required to make subjective assessments as to the useful lives of its depreciable assets. Columbia Property Trust considers the period of future benefit of the asset to determine the appropriate useful lives. These assessments have a direct impact on net income. The estimated useful lives of its assets by class are as follows:



Buildings		4040-45 years
Building and site improvements		5-25 years
Tenant improvements		Shorter of economic life or lease term
Intangible lease assets		Lease term

Evaluating the Recoverability of Real Estate Assets

Columbia Property Trust continually monitors events and changes in circumstances that could indicate that the carrying amounts of its real estate and related intangible assets, of both operating properties and properties under construction, ~~in which Columbia Property Trust has an ownership interest, either directly or through investments in joint ventures,~~ 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 and liabilities may not be recoverable, Columbia Property Trust assesses the recoverability of these assets and liabilities by determining whether the respective carrying values will be recovered through the estimated undiscounted future 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, Columbia Property Trust adjusts the carrying value 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. Estimated fair values are calculated based on the following ~~information, in order~~hierarchy of ~~preference,~~information, depending upon availability: (i) recently quoted market prices, (ii) market prices for comparable properties, or (iii) the present value of future cash flows, including estimated residual value. Certain of Columbia Property Trust's assets may be carried at more than an amount that could be realized in a current disposition transaction. Based on the assessment as described above, Columbia Property Trust has determined that ~~there is no impairment in~~ the carrying values of ~~our~~all its real estate assets and related intangible assets are recoverable as of ~~September~~June 30, ~~2016.~~2017.

Projections of expected future operating cash flows require that Columbia Property Trust 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. ~~The~~Due to the inherent subjectivity of the assumptions used ~~in the~~to project future cash ~~flow analysis, including discount rates, could result~~flows, estimated fair values may differ from the values that would be realized in an incorrect assessment of the property's fair value and could result in the misstatement of the carrying value of Columbia Property Trust's real estate assets and related intangible assets and liabilities and net income.market transactions.

Assets Held for Sale

Columbia Property Trust classifies ~~assets~~properties as held for sale according to ~~ASC~~Accounting Standard Codification 360, Accounting for the Impairment or Disposal of Long-Lived Assets ("ASC 360"). According to ASC 360, ~~assets~~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 (i.e., typically subject 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 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 ~~September~~June 30, 2017, none of Columbia Property Trust's properties met the criteria to be classified as held for sale in the accompanying balance sheet. As of December 31, 2016, ~~the~~ Key Center Tower, ~~and the~~ Key Center Marriott, 5 Houston Center, Energy Center I, and ~~the 9127 South Jamaica Street building~~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~~

Page 11

consolidated balance sheet as of that date. The sale of ~~the 9127 South Jamaica Street building~~5 Houston Center, Energy Center I, and 515 Post Oak closed on ~~October 12, 2016~~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 Key Center Tower and the Key Center Marriott transaction is expected to close in the fourth quarter of 2016.~~

The major classes of assets and liabilities classified as held for sale as of ~~September 30,~~December 31, 2016, are provided below (in thousands):


	September 30, 2016		December 31, 2016
Real estate assets held for sale:
Real estate assets, at cost:
Land	$	15,036	$	30,243
Buildings and improvements, less accumulated depreciation of $86,881	210,340
Intangible lease assets, less accumulated amortization of $24,544	11,798
Buildings and improvements, less accumulated depreciation of $152,246			366,126
Intangible lease assets, less accumulated amortization of $28,545			13,365
Construction in progress	1,702		2,772
Total real estate assets held for sale, net	$	238,876	$	412,506
Other assets held for sale:
Tenant receivables, net of allowance for doubtful accounts	$	2,011	$	1,722
Straight-line rent receivable	13,854		20,221
Prepaid expenses and other assets	2,721		3,184
Intangible lease origination costs, less accumulated amortization of $18,597	1,204
Deferred lease costs, less accumulated amortization of $4,528	12,516
Intangible lease origination costs, less accumulated amortization of $22,949			1,815
Deferred lease costs, less accumulated amortization of $11,203			18,587
Total other assets held for sale, net	$	32,306	$	45,529
Liabilities held for sale:
Accounts payable, accrued expenses, and accrued capital expenditures	$	11,224	$	34,812
Deferred income	1,653		4,214
Intangible lease liabilities, less accumulated amortization of $1,210	2,767
Intangible lease liabilities, less accumulated amortization of $1,239			2,737
Total liabilities held for sale, net	$	15,644	$	41,763

Intangible Assets and Liabilities Arising from In-Place Leases ~~where~~Where Columbia Property Trust Is the Lessor

Upon the acquisition of real properties, Columbia Property Trust allocates the purchase price of the properties 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 Value Measurements section above for additional detail). As of ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015,~~2016, Columbia Property Trust had the following intangible in-place lease assets and liabilities, excluding amounts held for sale (in thousands):

Intangible Lease Assets
Intangible
Lease
Origination
Costs

Intangible
Below-Market
In-Place Lease
Liabilities

Above-Market
In-Place
Lease Assets

Absorption
Period Costs

September 30, 2016 Gross $ 19,994
$ 184,740
$ 140,380
$ 82,719
Accumulated Amortization (17,328 ) (104,542 ) (81,735 ) (46,480 )
Net $ 2,666
$ 80,198
$ 58,645
$ 36,239
December 31, 2015 Gross $ 50,463
$ 317,841
$ 258,672
$ 138,663
Accumulated Amortization (37,971 ) (194,446 ) (181,482 ) (81,496 )
Net $ 12,492
$ 123,395
$ 77,190
$ 57,167



		Intangible Lease Assets						Intangible Lease Origination Costs			Intangible Below-Market In-Place Lease Liabilities
		Above-Market In-Place Lease Assets			Absorption Period Costs			Intangible Lease Origination Costs			Intangible Below-Market In-Place Lease Liabilities
June 30, 2017	Gross	$	1,689		$	139,732		$	117,357		$	69,006
	Accumulated Amortization	(796		)	(77,622		)	(68,771		)	(39,939		)
	Net	$	893		$	62,110		$	48,586		$	29,067
December 31, 2016	Gross	$	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

Page 12

For the three and ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015,~~2016, Columbia Property Trust recognized the following amortization of intangible lease assets and liabilities (in thousands):

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 three months ended September 30, 2016 $ 594
$ 6,133
$ 3,757
$ 2,768
For the three months ended September 30, 2015 $ 823
$ 10,926
$ 6,728
$ 4,634
For the nine months ended September 30, 2016 $ 2,014
$ 22,602
$ 13,811
$ 10,206
For the nine months ended September 30, 2015 $ 3,578
$ 35,724
$ 23,006
$ 15,190



	Intangible Lease Assets				Intangible Lease Origination Costs		Intangible Below-Market In-Place Lease Liabilities
	Above-Market In-Place Lease Assets		Absorption Period Costs		Intangible Lease Origination Costs		Intangible Below-Market In-Place Lease Liabilities
For the three months ended June 30, 2017	$	161	$	4,189	$	2,740	$	1,911
For the three months ended June 30, 2016	$	626	$	7,918	$	4,772	$	3,745
For the six months ended June 30, 2017	$	449	$	9,257	$	5,829	$	4,316
For the six months ended June 30, 2016	$	1,420	$	16,447	$	10,041	$	7,426

The ~~remaining~~ net intangible assets and liabilities remaining as of ~~September~~June 30, ~~2016~~2017, will be amortized as follows (in thousands):


	Intangible Lease Assets				Intangible Lease Origination Costs		Intangible Below-Market In-Place Lease Liabilities		Intangible Lease Assets				Intangible Lease Origination Costs		Intangible Below-Market In-Place Lease Liabilities
	Above-Market In-Place Lease Assets		Absorption Period Costs						Above-Market In-Place Lease Assets		Absorption Period Costs
For the remainder of 2016	$	348	$	5,682	$	3,289	$	2,567
For the remainder of 2017									$	47	$	7,232	$	5,053	$	3,312
For the years ending December 31:
2017	612		17,237		11,371		7,576
2018	270		13,467		9,964		5,649		97		12,834		9,540		5,649
2019	270		11,639		8,999		4,972		97		11,247		8,974		4,972
2020	270		9,709		7,950		3,836		97		9,318		7,925		3,836
2021	270		5,823		4,008		2,171		97		5,432		3,984		2,171
2022									97		4,054		3,006		1,938
Thereafter	626		16,641		13,064		9,468		361		11,993		10,104		7,189
	$	2,666	$	80,198	$	58,645	$	36,239	$	893	$	62,110	$	48,586	$	29,067

Intangible Assets and Liabilities Arising from In-Place Leases ~~where~~Where Columbia Property Trust Is the Lessee

Columbia Property Trust is the lessee on certain in-place ground leases. Intangible 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. Columbia Property Trust had gross below-market lease assets of approximately

$140.9 million as of ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015,~~2016, and recognized amortization of these assets of approximately $0.6 million for the three months ended ~~September~~June 30, 2017 and 2016, and ~~2015, and~~ approximately ~~$1.9~~$1.3 million for the ~~nine~~six months ended ~~September~~June 30, 2017 and 2016, ~~and 2015.~~respectively.

As of ~~September~~June 30, ~~2016,~~2017, the remaining net below-market intangible lease assets will be amortized as follows (in thousands):


For the remainder of 2016	$	637
For the remainder of 2017			$	1,274
For the years ending December 31:
2017	2,549
2018	2,549		2,549
2019	2,549		2,549
2020	2,549		2,549
2021	2,549		2,549
2022			2,549
Thereafter	107,954		105,406
	$	121,336	$	119,425

Page 13

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 swap transactions for speculative purposes; however, certain of its derivatives may not qualify for hedge accounting treatment. Columbia Property Trust records the fair value of its interest rate swaps 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 flow hedges are recorded as other comprehensive income, while changes in the fair value of the ineffective portion of a cash flow hedge, if any, are recognized currently in earnings. All changes in the fair value of interest rate swaps that do not qualify for hedge accounting treatment are recorded as gain ~~(loss)~~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 gain ~~(loss)~~or loss on interest rate swaps for contracts that do not qualify for hedge accounting treatment. The following tables provide additional information related to Columbia Property Trust's interest rate swaps (in thousands):


		Estimated Fair Value as of							Estimated Fair Value as of
Instrument Type	Balance Sheet Classification	September 30, 2016			December 31, 2015			Balance Sheet Classification	June 30, 2017			December 31, 2016
Derivatives designated as hedging instruments:
Interest rate contracts	Accounts payable	$	(8,065	)	$	(2,436	)	Accounts payable	$	(885	)	$	(882	)

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.

Three Months Ended
September 30, Nine Months Ended
September 30,
2016 2015 2016 2015
Market value adjustment to interest rate swaps designated as hedging instruments and included in other comprehensive income $ 1,250
$ (4,147 ) $ (5,629 ) $ (3,552 )
Loss on interest rate swap recognized through earnings $ —
$ (1,102 ) $ —
$ (1,110 )



	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Market value adjustment to interest rate swaps designated as hedging instruments and included in other comprehensive income	$	(636	)	$	(2,022	)	$	(2	)	$	(6,879	)

During the periods presented, there was no hedge ineffectiveness required to be recognized into earnings on the interest rate swaps that qualified for hedge accounting treatment.

Income Taxes

Columbia Property Trust has elected to be taxed as a REIT under the Internal Revenue Code of 1986, 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, Columbia Property Trust generally is not subject to income tax on income it distributes to stockholders. 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. 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 Property Trust TRS"),~~ Columbia KCP TRS, LLC, ~~("Columbia KCP TRS"),~~ and Columbia Energy TRS, LLC ~~("Columbia Energy TRS")~~ (collectively, the "TRS Entities") are wholly owned subsidiaries of Columbia Property Trust and are organized as Delaware limited liability ~~companies, and operate,~~companies. The TRS Entities, among other things, ~~office properties~~provide tenant services that Columbia Property Trust, ~~does not intend to hold long term and~~as a ~~full-service hotel.~~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% of the value of the total assets. The TRS Entities' deferred tax assets and

~~Page 14~~

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,

Page 14

Columbia Property Trust records interest and penalties related to uncertain tax positions as general and administrative expense in the accompanying consolidated statements of operations.

Recent Accounting Pronouncements

In ~~August 2016,~~February 2017, the Financial Accounting Standards Board (the "FASB") issued Accounting Standard Update 2017-05, Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Non-Financial Assets ("ASU ~~2016-15, Classification of Cash Receipts and Payments~~ ~~("ASU 2016-15"~~2017-05"), which ~~addresses~~will apply to the ~~statement~~partial sale of ~~cash flow classification requirements for several types of receipts and payments.~~non-financial assets, including real estate assets, to unconsolidated joint ventures. ASU ~~2016-15 provides~~2017-05 will require that ~~among other things, (i) debt prepayments and extinguishment costs should be classified as financing activities, (ii) insurance proceeds should be classified in accordance with the nature~~100% of the ~~respective claims,~~gain be recognized for non-financial assets transferred to an unconsolidated joint venture and ~~(iii) distributions~~any non-controlling interest received in such non-financial assets be measured at fair value. ASU 2017-05 is to be implemented at the same time as Accounting Standards Update 2014-09, Revenue from ~~equity method investees should be classified based on the underlying nature of the investee activity according to specific guidelines. ASU 2016-15~~Contracts with Customers (as described below), and is effective for Columbia Property Trust on January 1, 2018, with early adoption permitted. ~~ASU 2016-15 is not expected to materially impact~~ Columbia Property ~~Trust's~~Trust anticipates adopting ASU 2017-05 retrospectively with a cumulative-effect adjustment booked to retained earnings at adoption. This adjustment will (1) mark investments in unconsolidated joint ventures to fair value as of the date of contribution to the unconsolidated joint ventures, and (2) recognize the remainder of the gain associated with transferring the assets to the unconsolidated joint venture. Columbia Property Trust is evaluating the impact of ASU 2017-05 and anticipates applying the modified-retrospective approach of implementation by recording a cumulative-effect adjustment to equity for investments in unconsolidated joint ventures in which Columbia Property Trust had previously contributed property and recognized a gain on a partial property sale (see Note 4, Unconsolidated Joint Venture).

In January 2017, the FASB issued Accounting Standards Update 2017-01, Clarifying the Definition of a Business ("ASU 2017-01"), which provides a more narrow definition of a business to be used in determining the accounting ~~policies, or~~treatment of an acquisition, and, as a result, many acquisitions that previously qualified as business combinations will be treated as asset acquisitions. For asset acquisitions, acquisition costs may be capitalized, and purchase price may be allocated on a relative fair-value basis. ASU 2017-01 is effective prospectively for Columbia Property Trust on January 1, 2018, with early adoption permitted. For real estate acquisitions completed subsequent to its ~~financial statements.~~adoption, Columbia Property Trust anticipates that ASU 2017-01 will result in simplified purchase price allocations and the capitalization of associated acquisition costs.

In February 2016, the FASB issued Accounting Standards Update2016-02~~ASU 2016-02,~~, Leases ("ASU 2016-02"), 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.~~reporting, including the classification of lease components and nonlease components, such as services provided to tenants. The new standard will require lessees to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months, and 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.~~lessee, or not. This classification will determine whether the lease expense is recognized based on an 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 to account for leases using an approach that is substantially equivalent to existing guidance as applies to sales-type leases, direct financing leases, and operating leases. ASU 2016-02 ~~supersedes previous leasing standards. ASU 2016-02 is~~will be effective for Columbia Property Trust on January 1, 2019 and supersedes previous leasing standards. Once effective, Columbia Property Trust anticipates separating lease components from nonlease components, which will be evaluated under ASU 2014-09, as described below.

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 ~~reporting periods~~revenue 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, including 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. ASU 2014-09 will be effective retrospectively for Columbia Property Trust beginning ~~after December 15,~~on January 1, 2018, ~~with~~and early adoption is permitted. Columbia Property Trust is ~~evaluating~~continuing to evaluate the impact that ASU ~~2016-02~~2014-09 will have on its financial ~~position~~statements and ~~results~~disclosures; however, Columbia Property Trust primarily derives revenue from real estate leases, which are excluded from ASU 2014-09. Columbia Property Trust is in the process of ~~operations.~~evaluating the criteria of ASU 2014-09 and determining what impact the new standard will have on revenue streams generated from activities other than leasing, including asset management fees. At adoption, Columbia Property Trust anticipates applying the modified-retrospective approach of implementation as of the effective date and providing more extensive disclosures around our revised revenue recognition policy. Columbia Property Trust also anticipates that, upon the adoption of ASU 2016-02, as described above, nonlease components of revenue will also be evaluated under ASU 2014-09.

Page 15


3.	Real Estate Transactions

~~Acquisitions~~Dispositions

During 2016 and the ~~nine~~first six months ~~ended September 30,~~of 2017, Columbia Property Trust closed the following transactions:



Property	Location	Date	Purchase Price⁽¹⁾ (in thousands)		Gain (Loss) on Sale (in thousands)
2017
Key Center Tower & Marriott⁽²⁾	Cleveland, OH	January 31, 2017	$	267,500	$	9,500
Houston Properties Sale⁽³⁾	Houston, TX	January 6, 2017	$	272,000	$	63,700
2016
SanTan Corporate Center	Phoenix, AZ	December 15, 2016	$	58,500	$	9,800
Sterling Commerce	Dallas, TX	November 30, 2016	$	51,000	$	12,500
9127 South Jamaica Street	Denver, CO	October 12, 2016	$	19,500	$	—		⁽⁴⁾
80 Park Plaza	Newark, NJ	September 30, 2016	$	174,500	$	21,600
9189, 9191 & 9193 South Jamaica Street	Denver, CO	September 22, 2016	$	122,000	$	27,200
800 North Frederick	Suburban, MD	July 8, 2016	$	48,000	$	2,100
100 East Pratt	Baltimore, MD	March 31, 2016	$	187,000	$	(300	)


⁽¹⁾	Purchase price, as shown, is before purchase price adjustments.

⁽²⁾

Key Center Tower & Marriott were sold in one transaction on January 31, 2017. At closing, Columbia Property Trust received $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 $5.4 million for the first six months of 2016, and a net loss of $1.9 million for the first 31 days of 2017, excluding the gain on sale.


⁽³⁾	5 Houston Center, Energy Center I, and 515 Post Oak were sold in one transaction on January 6, 2017 (the "Houston Properties Sale"). The properties included in the Houston Properties Sale generated net income of $7.1 million for the first six months of 2016, and a net loss of $14.9 thousand for the first six days of 2017, excluding the gain on sale.


⁽⁴⁾	Columbia Property Trust recorded a de minimus loss on the sale of 9127 South Jamaica Street.

Acquisitions

Columbia Property Trust did not acquire any ~~properties. During 2015,~~properties during 2016 or the six months ended June 30, 2017. In February 2017, Columbia Property Trust ~~acquired the following properties (in thousands):~~

315 Park Avenue
South Building
1881 Campus Commons Building 116 Huntington
Avenue Building 229 West 43rd Street Building
Location New York, NY
Reston, VA
Boston, MA
New York, NY
Date Acquired January 7, 2015
January 7, 2015
January 8, 2015
August 4, 2015
Purchase price:
Land $ 119,633
$ 7,179
$ —
$ 207,233
Building and improvements 232,598
49,273
108,383
265,952
Intangible lease assets 16,912
4,643
7,907
27,039
Intangible below market ground lease assets —
—
30,244
—
Intangible lease origination costs 4,148
1,603
2,669
10,059
Intangible below market lease liability (7,487 ) (97 ) (1,878 ) —
Total purchase price $ 365,804
$ 62,601
$ 147,325
$ 510,283

~~Note 2,~~ ~~Summary of Significant Accounting Policies, provides~~deposited $12.0 million in earnest money, upon entering a ~~discussion of the estimated useful life for each asset class.~~

~~315 Park~~firm contract to purchase 149 Madison Avenue, ~~South Building & 1881 Campus Commons Building~~

~~On January 7, 2015, Columbia Property Trust acquired two assets, 315 Park Avenue South,~~ a ~~327,000-square-foot~~12-story, 127,000-square-foot office building in New York, New York (the "315 Park Avenue South Building"), and 1881 Campus Commons, a 244,000-square-foot office building in Reston, Virginia (the "1881 Campus Commons Building"). This portfolio was acquired for $436.0 million, exclusive of transaction costs and purchase price adjustments, using proceeds from the issuance of $350.0 million bonds payable due in 2025, proceeds from the Revolving Credit Facility, as described in Note 5, ~~Line of Credit and Notes Payable, and cash on hand.~~York. Closing is expected to occur later this year.

Allianz Joint Ventures

~~Page 15~~

~~As of the acquisition date, the 315 Park Avenue South Building was 94.9% leased to nine tenants, including Credit Suisse (74%). For the period from January 7, 2015 to September 30, 2015,~~On July 6, 2017, Columbia Property Trust ~~recognized revenues~~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 to Allianz Real Estate ("Allianz"), an unrelated third party, for a total of ~~$18.8~~$234.0 million ~~and a net loss~~(the "San Francisco Joint Ventures"). Upon the earlier of ~~$4.8 million from the 315 Park Avenue South Building. The net loss includes acquisition expenses of $1.2 million.~~

As of the acquisition date, the 1881 Campus Commons Building was 78.0% leased to 15 tenants, including SOS International (15%) and Siemens (12%). For the period from January 7, 2015 to September 30, 2015,July 6, 2018, or when Columbia Property Trust ~~recognized revenues~~and Allianz jointly invest $600.0 million in additional assets acquisitions (excluding 114 Fifth Ave described below), Allianz will acquire another 22.5% interest in each of ~~$4.6~~the San Francisco Joint Ventures at the same aggregate price, $234.0 million, ~~and~~adjusted for any capital expenditures at the properties made during the intervening period. At that point, Columbia Property Trust will hold a ~~net loss~~55.0% equity interest in each of ~~$1.6 million from~~ the ~~1881 Campus Commons Building. The net loss includes acquisition expenses of $0.5 million.~~

~~116 Huntington Avenue Building~~San Francisco Joint Ventures.

On ~~January 8, 2015,~~July 6, 2017, Columbia Property Trust acquired a ~~271,000-square-foot office~~49.5% equity interest in a joint venture that owns the 114 Fifth Avenue property for $108.9 million from Allianz (the "114 Fifth Avenue Joint Venture"). 114 Fifth Avenue is a 19-story, 352,000-square-foot building located in ~~Boston, Massachusetts (the "116 Huntington~~Manhattan’s Flatiron District which is currently 100% leased and is unencumbered by debt. The 114 Fifth Avenue Building"), for $152.0 million, inclusive of capital credits, using proceeds from the issuance of $350.0 million bonds payable due in 2025, proceeds from the Revolving Credit Facility, and cash on hand. 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 September 30, 2015,Joint Venture is owned by Columbia Property Trust ~~recognized revenues of $8.3 million~~(49.5%), Allianz (49.5%) and ~~a net loss of $0.6 million from~~L&L Holding Company (1.0%). L&L Holding Company is the ~~116 Huntington Avenue Building. The net loss includes acquisition expenses of $0.3 million.~~

~~229 West 43rd Street Building~~

On August 4, 2015, Columbia Property Trust acquired the 481,000-square-foot office portion of the 229 West 43rd Street building, a 16-story,732,000-square-foot building located in the Times Square sub-market of Manhattan in New York, New York (the "229 West 43rd Street Building"), for $516.0 million, exclusive of transaction costsgeneral partner, and ~~purchase price adjustments. This acquisition was funded with the $300 Million Bridge Loan, as described in Note 5,~~ ~~Line of Credit~~will continue to perform asset and ~~Notes Payable,~~ and borrowings on the Revolving Credit Facility. As of the acquisition date, the 229 West 43rd Street Building was 98% leased to nine tenants, including Yahoo! (40%), Snapchat (13%), Collective, Inc. (12%), and MongoDB (10%). For the period from August 4, 2015 to September 30, 2015, Columbia Property Trust recognized revenues of $5.5 million and net income of $0.4 million from the 229 West 43rd Street Building. The net income includes acquisition expenses of $1.7 million.

~~Proforma Financial Information~~

~~The following unaudited pro forma statements of operations presented~~property management services for the ~~three and nine months ended~~ September 30, 2015, have been prepared for Columbia Property Trust to give effect to the acquisitions of the 315 Park Avenue South Building, the 1881 Campus Commons Building, the 116 Huntington Avenue Building, and the 229 West 43rd Street Building as if the acquisitions occurred on January 1, 2014. Other than 1881 Campus Commons, which was sold in December 2015, Columbia Property Trust owned these buildings for the entirety of the ~~three and nine months ended~~ September 30, 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, 2014 (in thousands).

Three Months Ended
September 30, 2015
Nine Months Ended
September 30, 2015
Revenues $ 140,225
$ 450,020
Net income $ 21,534
$ 36,183
Net income per share - basic $ 0.17
$ 0.29
Net income per share - diluted $ 0.17
$ 0.29

~~Page 16~~

~~Dispositions~~

~~During 2016 and 2015, Columbia Property Trust closed on the following transactions:~~

~~9127 South Jamaica Street Building~~

On October 12, 2016, Columbia Property Trust sold the 9127 South Jamaica Street building, one of the four buildings at the South Jamaica Street Property in Denver, Colorado, for $19.5 million, before purchase price adjustments.

~~80 Park Plaza Property~~

On September 30, 2016, Columbia Property Trust sold the 80 Park Plaza Property in Newark, New Jersey, for $174.5 million, before purchase price adjustments, and recognized a gain of approximately $21.6 million on the sale in the third quarter of 2016. A portion of the net sale proceeds of $169.3 million were used to repay the outstanding balance of the Revolving Credit Facility of $99.0 million after quarter end.

~~South Jamaica Street Property~~

On September 22, 2016, Columbia Property Trust sold three of the four buildings at the South Jamaica Street Property in Denver, Colorado, for $122.0 million, before purchase price adjustments, and recognized a gain of approximately $27.2 million on the sale in the third quarter of 2016. The net sale proceeds of $108.0 million were used to reduce the outstanding balance of the Revolving Credit Facility.

~~800 North Frederick Property~~

On July 8, 2016, Columbia Property Trust sold the 800 North Frederick Property in suburban Maryland for $48.0 million, before purchase price adjustments, and recognized a gain of approximately $2.1 million on the sale in the third quarter of 2016. The net sale proceeds of $45.4 million were used to reduce the outstanding balance of the Revolving Credit Facility.

~~100 East Pratt Property~~

On March 31, 2016, Columbia Property Trust sold the 100 East Pratt Property in Baltimore, Maryland, for $187.0 million, before purchase price adjustments, and recognized a $0.3 million loss on the sale. The net sale proceeds of $159.4 million were used to repay $119.0 million remaining on the $300 Million Bridge Loan on April 1, 2016, and to reduce the outstanding balance of the Revolving Credit Facility.

~~1881 Campus Commons Building~~

On December 10, 2015, Columbia Property Trust sold the 1881 Campus Commons Building in Reston, Virginia, for $65.0 million, exclusive of purchase price adjustments and closing costs, yielding a gain of $0.5 million. The proceeds from the sale of the 1881 Campus Commons Building were used to reduce the outstanding balance of the $300 Million Bridge Loan.

~~Market Square Buildings - Partial Sale~~

~~On October 28, 2015, Columbia Property Trust transferred the Market Square Buildings, as described in Note 4,~~ ~~Unconsolidated Joint Venture~~, and the related $325.0 million mortgage note to a joint venture (the "Market Square Joint Venture") and sold a 49% interest in the Market Square Joint Venture to Blackstone Property Partners ("Blackstone") for approximately $120.0 million of net proceeds, which were used to repay a portion of the $300 Million Bridge Loan. As a result of this transaction, Columbia Property Trust recognized a gain on real estate of $3.1 million and retains a 51% interest in the Market Square Joint Venture. The Market Square Joint Venture owns and operates the Market Square Buildings through a REIT ("Market Square REIT East & West, LLC"). See Note 4, ~~Unconsolidated Joint Venture, for additional information.~~

~~Page 17~~

~~11 Property Sale~~

On July 1, 2015, Columbia Property Trust sold 11 properties to an unaffiliated third party for $433.3 million, exclusive of closing costs (the "11 Property Sale"), which resulted in a gain of $19.7 million. 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. The following properties make up the 11 Property Sale:



~~170 Park Avenue~~	~~Bannockburn Lake III~~	~~Acxiom~~
~~180 Park Avenue~~	~~544 Lakeview~~	~~215 Diehl Road~~
~~Robbins Road~~	~~Highland Landmark III~~	~~1580 West Nursery~~
~~550 King Street~~	~~The Corridors III~~

property.

4. Unconsolidated Joint Venture

Columbia Property Trust owns ~~a majority interest~~51% of ~~51% in~~an unconsolidated joint venture that owns the Market Square buildings (the "Market Square Joint ~~Venture,~~Venture"), and Blackstone Property Partners ("Blackstone") owns the remaining 49% ~~interest in the joint venture.~~interest. The Market Square Joint Venture owns and operates the Market Square ~~Buildings~~buildings through Market Square REIT East & West, LLC, which operates as a

Page 16

REIT. The Market Square ~~Buildings~~buildings are two, 13-story office buildings containing 698,000 square feet of office space in Washington, D.C. (the "Market Square Buildings"). Columbia Property Trust shares substantive participation rights with Blackstone, including management selection and termination, and the approval of material operating and capital decisions. As such, Columbia Property Trust uses the equity method of accounting to record its investment in the Market Square Joint Venture. Under the equity method, the investment in the joint venture is recorded at cost and adjusted for cash contributions and distributions, and allocations of income ~~(loss).~~or loss. Cash distributions and earnings are allocated according to the provisions of the joint venture agreement, which are consistent with the ownership percentages for the Market Square Joint Venture.

Columbia Property Trust evaluates the recoverability of its investment in unconsolidated joint venture 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 "temporary" or "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 the carrying value of its investment in unconsolidated joint venture is recoverable as of June 30, 2017.

As of ~~September~~June 30, 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. ~~On October 28, 2015,~~ Columbia Property Trust ~~entered into~~guarantees a ~~guaranty of a $25.0 million~~ portion of the Market Square mortgage note, the amount of which has been reduced to ~~$23.3~~$12.6 million as of ~~September~~June 30, 2017 from $16.1 million as of December 31, 2016, as a result of leasing at the Market Square Buildings. The amount of the guaranty will continue to be reduced as space is leased.

Condensed balance sheet information for the Market Square Joint Venture is as follows (in thousands):


	September 30, 2016		December 31, 2015		June 30, 2017		December 31, 2016
Total assets	$	578,097	$	573,073	$	582,664	$	587,344
Total debt	$	324,642	$	324,603	$	324,682	$	324,656
Total equity	$	239,845	$	230,060	$	239,207	$	242,802
Columbia Property Trust's investment	$	125,605	$	118,695	$	125,584	$	127,346

Condensed income statement information for the Market Square Joint Venture is as follows (in thousands)~~. The Market Square Joint Venture was formed subsequent to September 30, 2015.~~:


							For the Three Months Ended June 30, 2017						For the Six Months Ended June 30, 2017
	Three Months Ended September 30, 2016			Nine Months Ended September 30, 2016			2017			2016			2017			2016
Total revenues	$	9,787		$	31,226		$	10,428		$	9,776		$	20,562		$	21,439
Net loss	$	(3,799	)	$	(10,669	)	$	(3,563	)	$	(3,827	)	$	(7,259	)	$	(6,870	)
Columbia Property Trust's share	$	(1,937	)	$	(5,441	)
Columbia Property Trust's share of net loss							$	(1,817	)	$	(1,952	)	$	(3,702	)	$	(3,504	)

Page 1817

Columbia Property Trust provides property and asset management services to the Market Square Joint Venture. Under these agreements, Columbia Property Trust oversees the day-to-day operations of the Market Square Joint Venture and the Market Square Buildings, including property management, property accounting, and other property services. Columbia Property Trust receives property management fees equal to 3.0% of the gross revenue of the Market Square Buildings and reimbursements of property operating costs, payable monthly, and receives asset management fees of $1.0 million annually, payable in equal quarterly installments. ~~During the three and nine months ended September 30, 2016,~~ Columbia Property Trust earned ~~$0.6 million and $1.9 million, respectively, in~~ fees related to these asset and property management services ~~which~~of $0.7 million and $0.6 million for the three months ended June 30, 2017 and 2016, respectively, and $1.3 million for each of the six month periods ended June 30, 2017 and 2016. Such fees are included in other property income on the accompanying consolidated ~~statement~~statements of operations. ~~The Market Square Joint Venture was formed in October 2015, so similar fees were not earned during the nine months ended September 30, 2015.~~

As of ~~September~~June 30, 2017 and December 31, 2016, ~~$0.1 million in~~ property management fees of $0.1 million were due from the Market Square Joint Venture and are included in prepaid expenses and other assets on the accompanying consolidated balance ~~sheet.~~sheets.

5. Line of Credit and Notes Payable

As of ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015~~2016, Columbia Property Trust had the following line of credit and notes payable indebtedness (excluding bonds payable; see Note 6, Bonds Payable) in thousands:

Facility September 30,
2016 December 31,
2015
$300 Million Term Loan $ 300,000
$ 300,000
$150 Million Term Loan 150,000
150,000
650 California Street Building mortgage note 126,920
128,785
Revolving Credit Facility 99,000
247,000
221 Main Street Building mortgage note 73,000
73,000
263 Shuman Boulevard Building mortgage note 49,000
49,000
One Glenlake Building mortgage note 27,072
29,278
$300 Million Bridge Loan —
119,000
SanTan Corporate Center mortgage notes —
39,000
Less: Deferred financing costs related to term loans and notes payable, net of accumulated amortization (3,406 ) (4,492 )
Total indebtedness $ 821,586
$ 1,130,571



Facility	June 30, 2017			December 31, 2016
$300 Million Term Loan	$	300,000		$	300,000
$150 Million Term Loan	150,000			150,000
650 California Street building mortgage note	125,005			126,287
263 Shuman Boulevard building mortgage note⁽¹⁾	49,000			49,000
One Glenlake building mortgage note	24,769			26,315
221 Main Street building mortgage note	—			73,000
Revolving Credit Facility	—			—
Less: Deferred financing costs related to term loans and notes payable, net of accumulated amortization	(2,614		)	(3,136		)
	$	646,160		$	721,466


⁽¹⁾	In January 2017, the lender put this loan into default because the full-building lease with OfficeMax was not renewed, as required by the loan agreement. OfficeMax vacated the property in 2015, and the lease expired in May 2017. Columbia Property Trust is in the process of working to transfer this property to the lender.

Fair Value of Debt

The estimated fair value of Columbia Property Trust's line of credit and notes payable as of ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015,~~2016, was approximately ~~$829.4~~$651.7 million and ~~$1,140.1~~$728.5 million, respectively. The related carrying value of the line of credit and notes payable as of ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015,~~2016, was ~~$825.0~~$648.8 million and ~~$1,135.1~~$724.6 million, respectively. Columbia Property Trust estimated the fair value of the $300 Million Term Loan (the "$300 Million Term Loan") and the Revolving Credit Facility (the "Revolving Credit Facility") 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. The discounted cash flow method of assessing fair value results in a general approximation of value, and such value may never actually be realized.

Interest Paid and Capitalized and Debt Covenants

During the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015~~2016, Columbia Property Trust made interest payments totaling approximately ~~$21.7~~$11.2 million and ~~$43.4~~$15.2 million, respectively, of which approximately ~~$0.2~~$0.3 million and ~~$0.4~~$0.1 million, ~~were capitalized during the nine months ended September 30, 2016 and 2015, respectively.~~respectively, was capitalized. As of ~~September~~June 30, ~~2016,~~2017, Columbia Property Trust believes it ~~was~~is in compliance with the restrictive financial covenants on its term loans, the Revolving Credit Facility, and notes payable obligations.

Debt Repayments

~~Subsequent to quarter end, Columbia Property Trust used proceeds from the 80 Park Plaza Property sale to fully repay the Revolving Credit Facility balance of $99.0 million.~~

~~Page 19~~

~~Table of Contents~~

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. In the second quarter of 2016, Columbia Property Trust wrote off 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,~~March 10, 2017, Columbia Property Trust repaid the ~~$119.0~~$73.0 million ~~remaining on its $300 million, six-month unsecured loan,~~balance of the 221 Main Street building mortgage note, which was ~~used to finance a portion of the 229 West 43rd Street Building acquisition in August of 2015 (the "$300 Million Bridge Loan"). The $300 Million Bridge Loan was~~originally scheduled to mature on ~~August 4, 2016.~~May 10, 2017. Columbia Property Trust recognized a loss on early extinguishment of debt of ~~$82,000~~$45,000 related to unamortized deferred financing costs.

Page 18

Table of Contents

Term Loan Amendment

On July 25, 2017, Columbia Property Trust amended the terms of it $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 is effectively fixed with an interest rate swap agreement, which is designated as a cash flow hedge.

6. Bonds Payable

On August 12, 2016, Columbia Property Trust OP issued $350.0 million of ~~ten-year,~~10-year, unsecured 3.650% senior notes at 99.626% of their face value (the "2026 Bonds Payable"), which are guaranteed by Columbia Property Trust. Columbia Property Trust OP received net proceeds from the 2026 Bonds Payable of $346.4 million, which were used to redeem $250.0 million of seven-year, unsecured 5.875% senior notes ~~due April 2018~~ (the "2018 Bonds Payable"), including a $17.9 million make-whole payment reflected as an early loss on extinguishment of debt in the accompanying consolidated statement of operations. The remaining net proceeds were used to repay borrowings on the Revolving Credit Facility.. The 2026 Bonds Payable require semi-annual interest payments in February and August based 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~~is being amortized to interest expense over the term of the 2026 Bonds Payable using the effective interest method. 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 ~~ten-year,~~10-year, unsecured 4.150% senior notes at 99.859% of their face value (the "2025 Bonds Payable"), which are guaranteed by Columbia Property Trust. Columbia Property Trust OP received proceeds from 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~~is being 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.

Interest payments of ~~$20.8~~$13.8 million were made on the ~~2018~~2026 Bonds Payable and ~~the~~ 2025 Bonds Payable during the ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2017, and $14.6 million in interest payments ~~of $7.3 million~~ were made on the 2025 Bonds Payable or the 2018 Bonds Payable during the ~~nine~~six months ended ~~September~~June 30, ~~2015.~~2016. Columbia Property Trust is subject to substantially similar covenants under the 2026 Bonds Payable and the 2025 Bonds Payable. As of ~~September~~June 30, ~~2016~~2017, Columbia Property Trust believes it was in compliance with the restrictive financial covenants on the 2026 Bonds Payable and the 2025 Bonds Payable.

As of ~~September~~June 30, 2017 and December 31, 2016, the estimated fair value of the 2026 Bonds Payable and the 2025 Bonds Payable was approximately ~~$703.2~~$703.0 million and ~~as of December 31, 2015, the estimated fair value of the 2025 Bonds Payable and the 2018 Bonds Payable was approximately $602.3 million.~~$703.1 million, respectively. The related carrying value of the bonds payable, net of discounts, as of ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015,~~2016, was ~~$698.3~~$698.4 million and ~~$599.0~~$698.3 million, respectively. The fair value of the bonds payable was estimated based on discounted cash flow analyses using the current incremental borrowing rates for similar types of borrowings as the bonds as of the respective reporting dates (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.


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 ~~September~~June 30, ~~2016, Columbia Property Trust is committed, under~~2017, no tenants have exercised such options that have not been materially satisfied or recorded as a ~~recently signed lease, to contribute approximately $70.1 million toward leasehold improvements at our 222 East 41st Street property, which is expected to be paid during 2016 and 2017.~~liability on the accompanying consolidated balance sheet.

Guaranty of Debt of Unconsolidated Joint Venture

Upon entering into the Market Square Joint Venture in October 2015, Columbia Property Trust entered into a guaranty of a $25.0 million portion of 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 ~~$23.3~~$12.6 million as of ~~September~~June 30, ~~2016.~~2017. Columbia Property Trust believes that the likelihood of

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making a payment under this guaranty is remote; therefore, no liability has been recorded related to this guaranty as of ~~September~~June 30, ~~2016.~~2017.

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.

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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 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, liquidity, or financial condition of Columbia Property Trust.


8.	Stockholders' Equity

Common Stock Repurchase Program

Columbia Property Trust's board of directors has authorized the repurchase of up to an aggregate of $200 million of its common stock, par value $0.01 per share, through September 4, 2017 (the "Stock Repurchase Program"). Since this program commenced on September 4, 2015, Columbia Property Trust has ~~spent a total of $41.3 million to acquire 1.8~~acquired 4.4 million shares at an average price of ~~$22.60 per share.~~$22.08, for aggregate purchases of $96.5 million. During the three months ended ~~September~~June 30, ~~2016,~~2017, Columbia Property Trust ~~made no share repurchases.~~repurchased 1.3 million shares at an average price of $21.95, for aggregate purchases of $27.5 million. As of ~~September~~June 30, ~~2016, $158.7~~2017, $103.5 million remains available for repurchases under the 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

Columbia Property Trust maintains a shareholder-approved, long-term incentive plan that provides for grants of up to ~~2.0~~4.8 million shares of stock to be made to certain employees and independent directors of Columbia Property Trust (the "LTIP").On

In 2017, Columbia Property Trust has granted 138,938 shares of common stock to employees under the LTIP for 2017. Such awards are time-based and will vest ratably on each anniversary of the grant over the next four years. Performance-based stock unit awards representing 330,541 shares were also made in 2017. The payout of these performance-based awards can range from 0% to 150%, depending on total shareholder return relative to the FTSE NAREIT Equity Office Index, over a three-year performance period. At the conclusion of the three-year performance period, 75% of the shares earned will vest, and the remaining 25% vest one year later. The performance-based awards also include one- and two-year transitional awards, which will vest at the end of the respective performance periods. The awards will be expensed over the vesting period, using the estimated fair value for each award. Time-based awards will be expensed using the grant-date fair value or closing price of the award on the grant date. Performance-based awards will be expensed over the vesting period at the estimated fair value of the grant date, as determined by the Monte Carlo valuation method.

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Additionally, on January ~~21, 2016,~~20, 2017, Columbia Property Trust granted ~~231,015~~193,535 shares of common stock to employees, net of ~~20,842~~17,938 shares ~~repurchased~~withheld to ~~fund income~~settle the related tax ~~witholdings,~~liability, under the LTIP ~~(the "2015 LTIP Employee Grant"),~~for 2016 performance, of which 25% vested upon ~~grant, and~~grant; the remaining shares will vest ~~in three equal increments~~ratably, with the passage of time, on January 31, ~~2017,~~ 2018, 2019, and ~~2019.~~2020. Employees will receive quarterly dividends related to their entire grant, including the unvested shares, on each dividend payment date. A summary of the activity for the employee stock grants under the LTIP for the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 follows:


	For the Nine Months Ended September 30, 2016				For the Six Months Ended June 30, 2017
	Shares (in thousands)		Weighted-Average Grant-Date Fair Value⁽¹⁾		Shares (in thousands)		Weighted-Average Grant-Date Fair Value⁽¹⁾
Unvested shares - beginning of period	151		$	24.59
Unvested shares – beginning of period					256		$	22.62
Granted	247		$	21.79	663		$	20.20
Vested	(138	)	$	23.32	(161	)	$	22.67
Forfeited	(3	)	$	21.90	(7	)	$	21.21
Unvested shares - end of period⁽²⁾	257		$	22.62
Unvested shares – end of period⁽²⁾					751		$	20.48


⁽¹⁾	Columbia Property Trust determined the weighted-average, grant-date fair value using the market closing price on the date of the respective grants.


⁽²⁾	As of ~~September~~June 30, ~~2016,~~2017, we expect approximately ~~244,000~~713,000 of the ~~257,000~~751,000 unvested shares to ultimately vest, assuming a forfeiture rate of 5.0%, which was determined based on peer company data, adjusted for the specifics of the LTIP.

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During the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015,~~2016, Columbia Property Trust paid ~~quarterly installments of the independent directors' annual~~ equity retainers ~~by granting shares~~ to ~~the~~its independent directors ~~which vested at the time of grant. A summary of these grants, made~~ under the LTIP ~~follows:~~by granting the following shares, all of which vested immediately:

Date of Grant Shares Grant-Date Fair Value
2016 Director Grants:
January 4, 2016 7,439
$ 23.00
April 1, 2016 8,120
$ 21.89
July 1, 2016 8,158
$ 21.52
2015 Director Grants:
January 2, 2015 5,850
$ 25.75
April 1, 2015 4,995
$ 27.16
July 1, 2015 4,144
$ 24.84



Date of Grant	Shares		Grant-Date Fair Value
2017 Director Grants:
January 3, 2017	8,279		$	21.58
May 2, 2017	33,581	⁽¹⁾	$	22.57
2016 Director Grants:
January 4, 2016	7,439		$	23.00
April 1, 2016	8,120		$	21.89


⁽¹⁾	On May 2, 2017, the independent directors’ equity retainers were paid for the ensuing annual period. Prior to this time, the independent directors’ equity retainers were paid quarterly.

For the three and ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015,~~2016, Columbia Property Trust incurred the stock-based compensation expense related to the following events (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,				Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015		2017		2016		2017		2016
Amortization of unvested LTIP awards	$	650	$	381	$	2,190	$	1,308
Future employee awards⁽¹⁾	91		412		797		1,228
Amortization of LTIP awards									$	887	$	689	$	1,804	$	1,540
Amortization of future LTIP awards⁽¹⁾									617		346		1,212		706
Issuance of shares to independent directors	176		103		525		389		758		178		937		349
Total stock-based compensation expense	$	917	$	896	$	3,512	$	2,925	$	2,262	$	1,213	$	3,953	$	2,595


⁽¹⁾	~~These estimated future employee~~Reflects amortization of LTIP awards ~~relate to~~for service during the current period, tofor which shares will be ~~granted~~issued in ~~January of the subsequent year, with 25% vesting on the date of grant, and the remaining 75% vesting ratably on January 31st of each of the following three years.~~future periods.

These expenses are included in general and administrative expenses in the accompanying consolidated statements of operations. As of ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015,~~2016, there was ~~$3.8~~$11.3 million and ~~$2.2~~$3.2 million, respectively, of unrecognized compensation costs related to unvested awards under the ~~LTIP. This amount~~LTIP, which will be amortized over the respective vesting period, ranging from one to ~~three~~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 this year.

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9. Supplemental Disclosures of Noncash Investing and Financing Activities

Outlined below are significant noncash investing and financing activities for the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015~~2016 (in thousands):

Nine Months Ended
September 30,
2016 2015
Investments in real estate funded with other assets $ 1,442
$ 27,000
Other assets assumed at acquisition $ —
$ 7,785
Other liabilities assumed at acquisition $ —
$ 4,765
Discount on issuance of bonds payable $ 1,309
$ 494
Amortization of net discounts (premiums) on debt $ 222
$ (94 )
Market value adjustments to interest rate swaps that qualify for hedge accounting treatment $ —
$ (3,552 )
Accrued capital expenditures and deferred lease costs $ 16,074
$ 16,444
Accrued deferred financing costs $ 12
$ 2
Common stock issued to employees and directors, and amortized (net of income tax witholdings) $ 2,339
$ 2,925



	Six Months Ended June 30,
	2017			2016
Investments in real estate funded with other assets	$	311		$	—
Deposits applied to sales of real estate	$	10,000		$	—
Amortization of net discounts on debt	$	90		$	151
Market value adjustments to interest rate swaps that qualify for hedge accounting treatment	$	(2	)	$	(6,879	)
Accrued capital expenditures and deferred lease costs	$	28,547		$	7,505
Common stock issued to employees and directors, and amortized (net of income tax withholdings)	$	2,501		$	1,417

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10. Earnings Per Share

For the three and ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015,~~2016, in computing the basic and diluted ~~earnings-per-share,~~earnings per share, net income has been reduced for the dividends paid on unvested shares related to unvested awards under the LTIP. The following table reconciles the numerator for the basic and diluted earnings-per-share computations shown on the consolidated statements of operations for the three and ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015~~2016 (in thousands):


	Three Months Ended September 30,						Nine Months Ended September 30,						Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015			2017			2016			2017			2016
Net income	$	36,898		$	20,143		$	56,881		$	34,450		$	1,133		$	13,286		$	75,855		$	19,983
Distributions paid on unvested shares	(77		)	(45		)	(237		)	(139		)	(85		)	(77		)	(168		)	(159		)
Net income used to calculate basic and diluted earnings per share	$	36,821		$	20,098		$	56,644		$	34,311		$	1,048		$	13,209		$	75,687		$	19,824

The following table reconciles the denominator for the basic and diluted earnings-per-share computations shown on the consolidated statements of operations for the three and ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015,~~2016, respectively (in thousands):

Three Months Ended
September 30, Nine Months Ended
September 30,
2016 2015 2016 2015
Weighted-average common shares - basic 123,215
124,359
123,271
124,359
Plus incremental weighted-average shares from time-vested conversions, less assumed share repurchases:
Previously granted LTIP awards, unvested 82
37
46
28
Future LTIP awards for the current year 53
64
31
58
Weighted-average common shares - diluted 123,350
124,460
123,348
124,445



	Three Months Ended June 30,		Six Months Ended June 30,
	2017	2016	2017	2016
Weighted-average common shares – basic	121,534	123,206	121,768	123,299
Plus incremental weighted-average shares from time-vested conversions, less assumed share repurchases:
Previously granted LTIP awards, unvested	90	43	75	26
Future LTIP awards	285	45	272	32
Weighted-average common shares – diluted	121,909	123,294	122,115	123,357

11. Segment Information

Columbia Property Trust establishes operating segments at the property level and aggregates individual properties into reportable segments for 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 June 30, 2017, 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 plan to make further investments. During the periods presented, there have been no material inter-segment transactions.

Net operating income ("NOI") is a non-GAAP financial measure. NOI is the primary performance measure reviewed by management to assess operating performance of properties and is calculated by deducting operating expenses from operating

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revenues. Operating revenues include rental income, tenant reimbursements, 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.

When assessing ongoing performance of our reportable segments, management does not evaluate assets or capital expenditures by reportable segment. Additionally, expenses, such as depreciation and amortization and others included in the reconciliation of GAAP net income to NOI, are reviewed by management on a consolidated basis, rather than by reportable segment.

The following table presents operating revenues by geographic reportable segment (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
New York	$	25,524		$	36,239		$	53,110		$	65,687
San Francisco	27,593			27,815			54,775			55,903
Atlanta	9,510			9,230			18,838			18,433
Washington, D.C.⁽¹⁾	7,745			8,428			15,128			17,913
Boston	2,720			3,105			5,624			5,903
Los Angeles	1,857			1,920			3,635			3,891
All other office markets	4,856			38,841			14,447			84,825
Total office segments	79,805			125,578			165,557			252,555
Hotel	5			6,630			1,223			11,362
Corporate	365			708			719			1,526
Total	80,175			132,916			167,499			265,443
Operating revenues included in loss from unconsolidated joint venture⁽¹⁾	(5,318		)	(4,986		)	(10,486		)	(10,934		)
Total operating revenues	$	74,857		$	127,930		$	157,013		$	254,509

⁽¹⁾

Includes operating revenues for our interest in the Market Square Buildings for all periods presented. Columbia Property Trust records its 51% interest in the Market Square Joint Venture using the equity method of accounting, and reflects its interest in the operating revenues of the Market Square Buildings in loss from unconsolidated joint venture in the accompanying consolidated statements of operations.

The following table presents NOI by geographic reportable segment (in thousands):



	Three Months Ended June 30,					Six Months Ended June 30,
	2017			2016		2017			2016
New York	$	16,259		$	24,086	$	33,875		$	41,135
San Francisco	19,701			19,381		39,567			40,452
Atlanta	8,285			8,226		16,578			16,507
Washington, D.C.⁽¹⁾	3,565			4,555		6,843			9,671
Boston	1,192			1,463		2,601			2,686
Los Angeles	1,202			1,192		2,284			2,442
All other office markets	4,597			23,605		11,527			52,388
Total office segments	54,801			82,508		113,275			165,281
Hotel	(14		)	1,523		(890		)	1,870
Corporate	395			517		847			1,066
Total	$	55,182		$	84,548	$	113,232		$	168,217


⁽¹⁾	Includes NOI for our interest in the Market Square Buildings for all periods presented. Columbia Property Trust records its 51% interest in the Market Square Joint Venture using the equity method of accounting, and reflects its interest in the NOI of the Market Square Buildings in loss from unconsolidated joint venture in the accompanying consolidated statements of operations.

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A reconciliation of GAAP net income to NOI is presented below (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Net income	$	1,133		$	13,286		$	75,855		$	19,983
Depreciation	20,423			28,450			42,028			57,739
Amortization	8,191			14,932			17,648			31,007
General and administrative	9,201			7,761			17,969			18,251
Net interest expense	13,785			17,372			28,350			35,264
Interest income from development authority bonds	(1,800		)	(1,800		)	(3,600		)	(3,600		)
Loss on early extinguishment of debt	—			92			45			92
Income tax expense (benefit)	7			245			(381		)	322
Adjustments included in loss from unconsolidated joint venture	4,242			4,191			8,471			8,830
Loss (gains) on sales of real estate assets	—			19			(73,153		)	329
NOI	$	55,182		$	84,548		$	113,232		$	168,217

12. Financial Information for Parent Guarantor, Issuer Subsidiary, 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 guarantee is full and unconditional; and


(3)	No other subsidiary of the parent company guarantor (Columbia Property Trust) guarantees the 2026 Bonds Payable or the 2025 Bonds Payable.

Columbia Property Trust uses the equity method with respect to its investment in subsidiaries included in its condensed consolidating financial statements. We have 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 the Company’s consolidated financial 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 consolidating statement of cash flows for the six months ended June 30, 2016: increase to operating cash flows for the parent and issuer of $3.6 million and $37.5 million, respectively; and increase (decrease) in investing cash flows of $(25.5) million, $151.5 million and $159.4 million, and increase (decrease) in financing cash flows of $21.9 million, $(189.0) million and $(159.4) million for the parent, issuer and non-guarantors, respectively. The impact to individual financial statement captions within the consolidating statement of cash flows is footnoted below.

Set forth below are Columbia Property Trust's condensed consolidating balance sheets as of ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015~~2016 ~~(in thousands)~~, as well as its condensed consolidating statements of operations and its condensed consolidating statements of comprehensive income for the three and ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015~~2016 ~~(in thousands)~~; and its condensed consolidating statements of cash flows for the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015~~2016 ~~(in thousands)~~.

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~~Condensed Consolidating Balance Sheets~~ ~~(in thousands)~~

As of September 30, 2016

Columbia Property Trust
(Parent)
(Guarantor)

Columbia
Property
Trust OP
(the Issuer)

Non-
Guarantors

Consolidating
adjustments
Columbia Property Trust
(Consolidated)
Assets:
Real estate assets, at cost:
Land $ —
$ 6,241
$ 781,215
$ —
$ 787,456
Buildings and improvements, net —
28,707
2,342,566
—
2,371,273
Intangible lease assets, net —
—
204,200
—
204,200
Construction in progress —
448
28,440
—
28,888
Real estate assets held for sale, net —
—
238,876
—
238,876
Total real estate assets —
35,396
3,595,297
—
3,630,693
Investment in unconsolidated joint venture —
125,605
—
—
125,605
Cash and cash equivalents 169,434
9,343
12,079
—
190,856
Investment in subsidiaries 2,045,043
1,880,585
—
(3,925,628 ) —
Tenant receivables, net of allowance —
77
6,289
—
6,366
Straight-line rent receivable —
1,557
68,629
—
70,186
Prepaid expenses and other assets 317,188
262,417
16,580
(571,300 ) 24,885
Intangible lease origination costs, net —
—
58,645
—
58,645
Deferred lease costs, net —
1,955
58,428
—
60,383
Investment in development authority bonds —
—
120,000
—
120,000
Other assets held for sale —
—
32,306
—
32,306
Total assets $ 2,531,665
$ 2,316,935
$ 3,968,253
$ (4,496,928 ) $ 4,319,925
Liabilities:
Line of credit and notes payable $ —
$ 546,505
$ 705,844
$ (430,763 ) $ 821,586
Bonds payable, net —
692,763
—
—
692,763
Accounts payable, accrued expenses, and accrued capital expenditures —
20,352
61,265
—
81,617
Due to affiliates —
31
1,561
(1,592 ) —
Deferred income —
249
20,162
—
20,411
Intangible lease liabilities, net —
—
36,239
—
36,239
Obligations under capital leases —
—
120,000
—
120,000
Liabilities held for sale —
—
154,589
(138,945 ) 15,644
Total liabilities —
1,259,900
1,099,660
(571,300 ) 1,788,260
Equity:
Total equity 2,531,665
1,057,035
2,868,593
(3,925,628 ) 2,531,665
Total liabilities and equity $ 2,531,665
$ 2,316,935
$ 3,968,253
$ (4,496,928 ) $ 4,319,925

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Condensed Consolidating Balance Sheets (in thousands)


	As of December 31, 2015											As of June 30, 2017
	Columbia Property Trust (Parent) (Guarantor)		Columbia Property Trust OP (the Issuer)		Non- Guarantors		Consolidating adjustments			Columbia Property Trust (Consolidated)		Columbia Property Trust (Parent) (Guarantor)		Columbia Property Trust OP (the Issuer)		Non- Guarantors		Consolidating Adjustments			Columbia Property Trust (Consolidated)
Assets:
Real estate assets, at cost:
Land	$	—	$	6,241	$	890,226	$	—		$	896,467	$	—	$	—	$	751,351	$	—		$	751,351
Building and improvements, net	—		28,913		2,868,518		—			2,897,431
Buildings and improvements, net												—		144		2,117,736		—			2,117,880
Intangible lease assets, net	—		—		259,136		—			259,136		—		—		182,428		—			182,428
Construction in progress	—		917		30,930		—			31,847		—		—		49,069		—			49,069
Total real estate assets	—		36,071		4,048,810		—			4,084,881		—		144		3,100,584		—			3,100,728
Investment in unconsolidated joint venture	—		118,695		—		—			118,695		—		125,584		—		—			125,584
Cash and cash equivalents	989		14,969		16,687		—			32,645		492,259		6,581		7,698		—			506,538
Investment in subsidiaries	2,333,408		1,901,581		—		(4,234,989		)	—		1,683,352		1,465,906		—		(3,149,258		)	—
Tenant receivables, net of allowance	—		52		11,618		—			11,670		—		33		3,969		—			4,002
Straight-line rent receivable	—		1,311		107,751		—			109,062		—		—		77,875		—			77,875
Prepaid expenses and other assets	317,151		265,615		26,153		(573,071		)	35,848		329,234		124,139		18,797		(432,355		)	39,815
Intangible lease origination costs, net	—		—		77,190		—			77,190		—		—		48,586		—			48,586
Deferred lease costs, net	—		2,055		86,072		—			88,127		—		—		129,849		—			129,849
Investment in development authority bonds	—		—		120,000		—			120,000		—		—		120,000		—			120,000
Total assets	$	2,651,548	$	2,340,349	$	4,494,281	$	(4,808,060	)	$	4,678,118	$	2,504,845	$	1,722,387	$	3,507,358	$	(3,581,613	)	$	4,152,977
Liabilities:
Lines of credit and notes payable, net	$	—	$	812,836	$	888,340	$	(570,605	)	$	1,130,571
Line of credit and notes payable												$	—	$	447,920	$	629,003	$	(430,763	)	$	646,160
Bonds payable, net	—		595,259		—		—			595,259		—		693,364		—		—			693,364
Accounts payable, accrued expenses, and accrued capital expenditures	—		13,313		85,446		—			98,759		2		11,588		128,561		—			140,151
Dividends payable	37,354		—		—		—			37,354
Due to affiliates	—		21		2,445		(2,466		)	—		—		—		1,592		(1,592		)	—
Deferred income	—		200		24,614		—			24,814		—		87		19,305		—			19,392
Intangible lease liabilities, net	—		—		57,167		—			57,167		—		—		29,067		—			29,067
Obligations under capital leases	—		—		120,000		—			120,000
Obligations under capital lease												—		—		120,000		—			120,000
Total liabilities	37,354		1,421,629		1,178,012		(573,071		)	2,063,924		2		1,152,959		927,528		(432,355		)	1,648,134
Equity:
Total equity	2,614,194		918,720		3,316,269		(4,234,989		)	2,614,194		2,504,843		569,428		2,579,830		(3,149,258		)	2,504,843
Total liabilities and equity	$	2,651,548	$	2,340,349	$	4,494,281	$	(4,808,060	)	$	4,678,118	$	2,504,845	$	1,722,387	$	3,507,358	$	(3,581,613	)	$	4,152,977

Page 25

Table of Contents

Condensed Consolidating ~~Statements of Operations~~Balance Sheets (in thousands)

For the Three Months Ended September 30, 2016

Columbia Property Trust
(Parent)
(Guarantor)

Columbia
Property
Trust OP
(the Issuer)

Non-
Guarantors

Consolidating
adjustments
Columbia Property Trust
(Consolidated)
Revenues:
Rental income $ —
$ 956
$ 86,702
$ (97 ) $ 87,561
Tenant reimbursements —
564
16,526
—
17,090
Hotel income —
—
6,270
—
6,270
Other property income 245
—
2,196
(96 ) 2,345
245
1,520
111,694
(193 ) 113,266
Expenses:
Property operating costs —
860
38,338
(97 ) 39,101
Hotel operating costs —
—
4,946
—
4,946
Asset and property management fees:
Related-party —
40
—
(40 ) —
Other —
—
387
—
387
Depreciation —
745
26,033
—
26,778
Amortization —
86
11,809
—
11,895
General and administrative 38
2,297
5,188
(56 ) 7,467
38
4,028
86,701
(193 ) 90,574
Real estate operating income (loss) 207
(2,508 ) 24,993
—
22,692
Other income (expense):
Interest expense —
(12,249 ) (12,256 ) 7,367
(17,138 )
Interest and other income 3,571
3,813
1,822
(7,367 ) 1,839
Loss on early extinguishment of debt —
(18,905 ) —
—
(18,905 )
3,571
(27,341 ) (10,434 ) —
(34,204 )
Income before income taxes, equity method investments, and gains on sales of real estate 3,778
(29,849 ) 14,559
—
(11,512 )
Income tax expense —
—
(65 ) —
(65 )
Income from subsidiaries 33,120
61,442
—
(94,562 ) —
Loss from unconsolidated joint venture —
(1,937 ) —
—
(1,937 )
Income before on gains on sales of real estate assets 36,898

29,656

14,494

(94,562 )
(13,514 )
Gain on sales of real estate assets —
—
50,412
—
50,412
Net income $ 36,898

$ 29,656

$ 64,906

$ (94,562 )
$ 36,898



	As of December 31, 2016
	Columbia Property Trust (Parent) (Guarantor)		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 venture	—		127,346		—		—			127,346
Cash and cash equivalents	174,420		16,509		25,156		—			216,085
Investment in subsidiaries	2,047,922		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 assets	317,153		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 payable	36,727		—		—		—			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	—		2,651		177,497		(138,385		)	41,763
Total liabilities	36,727		1,153,719		1,177,318		(570,739		)	1,797,025
Equity:
Total equity	2,502,768		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

Page 26

Table of Contents

Consolidating Statements of Operations (in thousands)


	For the Three Months Ended September 30, 2015															For the Three Months Ended June 30, 2017
	Columbia Property Trust (Parent) (Guarantor)			Columbia Property Trust OP (the Issuer)			Non- Guarantors			Consolidating adjustments			Columbia Property Trust (Consolidated)			Columbia Property Trust (Parent) (Guarantor)			Columbia Property Trust OP (the Issuer)			Non- Guarantors			Consolidating Adjustments			Columbia Property Trust (Consolidated)
Revenues:
Rental income	$	—		$	682		$	106,424		$	(95	)	$	107,011		$	—		$	—		$	67,216		$	(95	)	$	67,121
Tenant reimbursements	—			290			22,337			—			22,627			—			(100		)	7,072			—			6,972
Hotel income	—			—			6,941			—			6,941
Other property income	—			—			1,227			(87		)	1,140			245			—			519			—			764
	—			972			136,929			(182		)	137,719			245			(100		)	74,807			(95		)	74,857
Expenses:
Property operating costs	—			752			45,881			(95		)	46,538			—			(45		)	21,971			(95		)	21,831
Hotel operating costs	—			—			5,331			—			5,331			—			—			9			—			9
Asset and property management fees:
Related-party	—			30			—			(30		)	—
Other	—			—			472			—			472
Asset and property management fees																—			—			260			—			260
Depreciation	—			651			31,790			—			32,441			—			152			20,271			—			20,423
Amortization	—			59			20,217			—			20,276			—			—			8,191			—			8,191
General and administrative	37			2,338			4,479			(57		)	6,797			56			2,739			6,406			—			9,201
Acquisition expenses	—			—			1,680			—			1,680
	37			3,830			109,850			(182		)	113,535			56			2,846			57,108			(95		)	59,915
Real estate operating income (loss)	(37		)	(2,858		)	27,079			—			24,184			189			(2,946		)	17,699			—			14,942
Other income (expense):
Interest expense	—			(12,189		)	(16,709		)	6,886			(22,012		)	—			(10,568		)	(8,668		)	4,774			(14,462		)
Interest and other income	3,469			3,417			1,808			(6,886		)	1,808			4,228			1,220			1,803			(4,774		)	2,477
Loss on interest rate swaps	—			(1,101		)	(1		)	—			(1,102		)
Loss on early extinguishment of debt	—			(573		)	(2,099		)	—			(2,672		)
Income from subsidiaries	16,711			24,273			—			(40,984		)	—
	20,180			13,827			(17,001		)	(40,984		)	(23,978		)	4,228			(9,348		)	(6,865		)	—			(11,985		)
Income before income tax expense	20,143			10,969			10,078			(40,984		)	206
Income (loss) before income taxes and unconsolidated entities:																4,417			(12,294		)	10,834			—			2,957
Income tax expense	—			(5		)	(240		)	—			(245		)	—			—			(7		)	—			(7		)
Income before gain (loss) on sale of real estate assets	20,143			10,964			9,838			(40,984		)	(39		)
Gain (loss) on sale of real estate assets	—			(19		)	20,201			—			20,182
Net income	$	20,143		$	10,945		$	30,039		$	(40,984	)	$	20,143
Income (loss) from unconsolidated entities																(3,284		)	6,187			—			(4,720		)	(1,817		)
Net income (loss)																$	1,133		$	(6,107	)	$	10,827		$	(4,720	)	$	1,133

Page 27

Table of Contents

Consolidating Statements of Operations (in thousands)


	For the Nine Months Ended September 30, 2016														For the Three Months Ended June 30, 2016
	Columbia Property Trust (Parent) (Guarantor)		Columbia Property Trust OP (the Issuer)			Non- Guarantors			Consolidating adjustments			Columbia Property Trust (Consolidated)			Columbia Property Trust (Parent) (Guarantor)		Columbia Property Trust OP (the Issuer)			Non- Guarantors			Consolidating Adjustments			Columbia Property Trust (Consolidated)
Revenues:
Rental income	$	—	$	2,669		$	278,330		$	(285	)	$	280,714		$	—	$	863		$	92,796		$	(92	)	$	93,567
Tenant reimbursements	—		1,421			54,130			—			55,551			—		455			18,253			—			18,708
Hotel income	—		—			17,484			—			17,484			—		—			6,551			—			6,551
Other property income	735		—			13,571			(280		)	14,026			245		—			8,955			(96		)	9,104
	735		4,090			363,515			(565		)	367,775			245		1,318			126,555			(188		)	127,930
Expenses:
Property operating costs	—		2,360			118,604			(285		)	120,679			—		731			39,603			(92		)	40,242
Hotel operating costs	—		—			14,315			—			14,315			—		—			5,038			—			5,038
Asset and property management fees:
Related-party	—		112			—			(112		)	—			—		42			—			(42		)	—
Other	—		—			1,058			—			1,058			—		—			341			—			341
Depreciation	—		2,166			82,351			—			84,517			—		723			27,727			—			28,450
Amortization	—		239			42,663			—			42,902			—		77			14,855			—			14,932
General and administrative	116		6,575			19,195			(168		)	25,718			38		2,087			5,690			(54		)	7,761
	116		11,452			278,186			(565		)	289,189			38		3,660			93,254			(188		)	96,764
Real estate operating income (loss)	619		(7,362		)	85,329			—			78,586			207		(2,342		)	33,301			—			31,166
Other income (expense):
Interest expense	—		(36,479		)	(38,071		)	22,135			(52,415		)	—		(11,825		)	(12,933		)	7,378			(17,380		)
Interest and other income	10,680		11,471			5,436			(22,135		)	5,452			3,555		3,824			1,807			(7,378		)	1,808
Loss on early extinguishment of debt	—		(18,987		)	(10		)	—			(18,997		)	—		(82		)	(10		)	—			(92		)
	10,680		(43,995		)	(32,645		)	—			(65,960		)	3,555		(8,083		)	(11,136		)	—			(15,664		)
Income before income taxes, equity method investments, and gains on sales of real estate	11,299		(51,357		)	52,684			—			12,626
Income (loss) before income taxes and unconsolidated entities:															3,762		(10,425		)	22,165			—			15,502
Income tax expense	—		(12		)	(375		)	—			(387		)	—		(5		)	(240		)	—			(245		)
Income from subsidiaries	45,582		89,972			—			(135,554		)	—			9,524		17,804			—			(27,328		)	—
Loss from unconsolidated joint venture	—		(5,441		)	—			—			(5,441		)	—		(1,952		)	—			—			(1,952		)
Income before gains on sales of real estate	56,881		33,162			52,309			(135,554		)	6,798
Gains on sales of real estate	—		—			50,083			—			50,083
Income before sale of real estate assets:															13,286		5,422			21,925			(27,328		)	13,305
Loss on sale of real estate assets															—		—			(19		)	—			(19		)
Net income	$	56,881	$	33,162		$	102,392		$	(135,554	)	$	56,881		$	13,286	$	5,422		$	21,906		$	(27,328	)	$	13,286

Page 28

Table of Contents

Consolidating Statements of Operations (in thousands)

For the Nine Months Ended September 30, 2015

Columbia Property Trust
(Parent)
(Guarantor)

Columbia
Property
Trust OP
(the Issuer)

Non-
Guarantors

Consolidating
adjustments
Columbia Property Trust
(Consolidated)
Revenues:
Rental income $ —
$ 1,926
$ 331,089
$ (279 ) $ 332,736
Tenant reimbursements —
804
76,591
—
77,395
Hotel income —
—
18,898
—
18,898
Other property income —
—
4,605
(248 ) 4,357
—
2,730
431,183
(527 ) 433,386
Expenses:
Property operating costs —
2,286
142,368
(279 ) 144,375
Hotel operating costs —
—
15,069
—
15,069
Asset and property management fees:
Related-party —
70
—
(70 ) —
Other —
—
1,372
—
1,372
Depreciation —
1,907
98,354
—
100,261
Amortization —
173
67,060
—
67,233
General and administrative 113
6,492
15,494
(178 ) 21,921
Acquisition expenses —
11
3,664
—
3,675
113
10,939
343,381
(527 ) 353,906
Real estate operating income (loss) (113 ) (8,209 ) 87,802
—
79,480
Other income (expense):
Interest expense —
(32,656 ) (52,904 ) 19,299
(66,261 )
Interest and other income 10,586
8,720
5,441
(19,299 ) 5,448
Loss on interest rate swaps —
(1,101 ) (9 ) —
(1,110 )
Loss on early extinguishment of debt —
(1,050 ) (2,099 ) —
(3,149 )
Income from subsidiaries 23,977
46,301
—
(70,278 ) —
34,563
20,214
(49,571 ) (70,278 ) (65,072 )
Income before income tax expense and gain (loss) on sale of real estate assets 34,450
12,005
38,231
(70,278 ) 14,408
Income tax expense —
(16 ) (124 ) —
(140 )
Income before gain (loss) on sale of real estate assets 34,450
11,989
38,107
(70,278 ) 14,268
Gain (loss) on sale of real estate assets —
(19 ) 20,201
—
20,182
Net income $ 34,450
$ 11,970
$ 58,308
$ (70,278 ) $ 34,450



	For the Six Months Ended June 30, 2017
	Columbia Property Trust (Parent) (Guarantor)		Columbia Property Trust OP (the Issuer)			Non- Guarantors			Consolidating Adjustments			Columbia Property Trust (Consolidated)
Revenues:
Rental income	$	—	$	51		$	138,438		$	(195	)	$	138,294
Tenant reimbursements	—		(66		)	15,622			—			15,556
Hotel income	—		—			1,339			—			1,339
Other property income	490		—			1,352			(18		)	1,824
	490		(15		)	156,751			(213		)	157,013
Expenses:
Property operating costs	—		128			46,003			(195		)	45,936
Hotel operating costs	—		—			2,085			—			2,085
Asset and property management fees:
Related-party	—		3			—			(3		)	—
Other	—		—			529			—			529
Depreciation	—		234			41,794			—			42,028
Amortization	—		5			17,643			—			17,648
General and administrative	96		5,256			12,632			(15		)	17,969
	96		5,626			120,686			(213		)	126,195
Real estate operating income (loss)	394		(5,641		)	36,065			—			30,818
Other income (expense):
Interest expense	—		(20,851		)	(19,133		)	10,407			(29,577		)
Interest and other income	8,330		3,297			3,607			(10,407		)	4,827
Loss on early extinguishment of debt	—		—			(45		)	—			(45		)
	8,330		(17,554		)	(15,571		)	—			(24,795		)
Income (loss) before income taxes, unconsolidated entities, and sales of real estate:	8,724		(23,195		)	20,494			—			6,023
Income tax benefit	—		—			381			—			381
Income (loss) from unconsolidated entities	67,131		69,283			—			(140,116		)	(3,702		)
Income before sales of real estate assets:	75,855		46,088			20,875			(140,116		)	2,702
Gains on sales of real estate assets	—		11,050			62,103			—			73,153
Net income	$	75,855	$	57,138		$	82,978		$	(140,116	)	$	75,855

Page 29

Table of Contents

~~Consolidating Statements of Comprehensive Income~~ ~~(in thousands)~~

For the Three Months Ended September 30, 2016

Columbia Property Trust
(Parent)
(Guarantor)

Columbia
Property
Trust OP
(the Issuer)

Non-
Guarantors

Consolidating
adjustments
Columbia Property Trust
(Consolidated)
Net income $ 36,898
$ 29,656
$ 64,906
$ (94,562 ) $ 36,898
Market value adjustments to interest rate swaps 1,250
1,250
—
(1,250 ) 1,250
Comprehensive income $ 38,148
$ 30,906
$ 64,906
$ (95,812 ) $ 38,148



	For the Six Months Ended June 30, 2016
	Columbia Property Trust (Parent) (Guarantor)		Columbia Property Trust OP (the Issuer)			Non- Guarantors			Consolidating Adjustments			Columbia Property Trust (Consolidated)
Revenues:
Rental income	$	—	$	1,713		$	191,628		$	(188	)	$	193,153
Tenant reimbursements	—		857			37,604			—			38,461
Hotel income	—		—			11,214			—			11,214
Other property income	490		—			11,376			(185		)	11,681
	490		2,570			251,822			(373		)	254,509
Expenses:
Property operating costs	—		1,501			80,265			(188		)	81,578
Hotel operating costs	—		—			9,369			—			9,369
Asset and property management fees:
Related-party	—		72			—			(72		)	—
Other	—		—			671			—			671
Depreciation	—		1,421			56,318			—			57,739
Amortization	—		153			30,854			—			31,007
General and administrative	77		4,281			14,006			(113		)	18,251
	77		7,428			191,483			(373		)	198,615
Real estate operating income (loss)	413		(4,858		)	60,339			—			55,894
Other income (expense):
Interest expense	—		(24,230		)	(25,814		)	14,767			(35,277		)
Interest and other income	7,109		7,658			3,613			(14,767		)	3,613
Loss on early extinguishment of debt	—		(82		)	(10		)	—			(92		)
	7,109		(16,654		)	(22,211		)	—			(31,756		)
Income (loss) before income taxes, unconsolidated entities, and sales of real estate:	7,522		(21,512		)	38,128			—			24,138
Income tax expense	—		(12		)	(310		)	—			(322		)
Income from unconsolidated entities	12,461		28,625			—			(41,086		)	—
Loss from unconsolidated joint venture	—		(3,504		)	—			—			(3,504		)
Income before sales of real estate assets:	19,983		3,597			37,818			(41,086		)	20,312
Loss on sales of real estate assets	—		—			(329		)	—			(329		)
Net income	$	19,983	$	3,597		$	37,489		$	(41,086	)	$	19,983

For the Three Months Ended September 30, 2015

Columbia Property Trust
(Parent)
(Guarantor)

Columbia
Property
Trust OP
(the Issuer)

Non-
Guarantors

Consolidating
adjustments
Columbia Property Trust
(Consolidated)
Net income $ 20,143
$ 10,945
$ 30,039
$ (40,984 ) $ 20,143
Settlement of interest rate swap 1,102
1,102
—
(1,102 ) 1,102
Market value adjustments to interest rate swaps (4,147 ) (4,147 ) —
4,147
(4,147 )
Comprehensive income $ 17,098
$ 7,900
$ 30,039
$ (37,939 ) $ 17,098

For the Nine Months Ended September 30, 2016

Columbia Property Trust
(Parent)
(Guarantor)

Columbia
Property
Trust OP
(the Issuer)

Non-
Guarantors

Consolidating
adjustments
Columbia Property Trust
(Consolidated)
Net income $ 56,881
$ 33,162
$ 102,392
$ (135,554 ) $ 56,881
Market value adjustments to interest rate swaps (5,629 ) (5,629 ) —
5,629
(5,629 )
Comprehensive income $ 51,252
$ 27,533
$ 102,392
$ (129,925 ) $ 51,252

For the Nine Months Ended September 30, 2015

Columbia Property Trust
(Parent)
(Guarantor)

Columbia
Property
Trust OP
(the Issuer)

Non-
Guarantors

Consolidating
adjustments
Columbia Property Trust
(Consolidated)
Net income $ 34,450
$ 11,970
$ 58,308
$ (70,278 ) $ 34,450
Settlement of interest rate swap 1,102
1,102
—
(1,102 ) 1,102
Market value adjustments to interest rate swaps (3,552 ) (3,552 ) —
3,552
(3,552 )
Comprehensive income $ 32,000
$ 9,520
$ 58,308
$ (67,828 ) $ 32,000

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Consolidating Statements of ~~Cash Flows~~Comprehensive Income (in thousands)

For the Nine Months Ended September 30, 2016

Columbia Property Trust
(Parent)
(Guarantor)

Columbia Property Trust OP
(the Issuer)

Non-
Guarantors
Columbia Property Trust
(Consolidated)
Cash flows from operating activities $ 635
$ (38,952 ) $ 188,021
$ 149,704
Cash flows from investing activities:
Net proceeds from sale of real estate 482,089
—
—
482,089
Investment in real estate and related assets —
(1,552 ) (52,608 ) (54,160 )
Investment in unconsolidated joint venture —
(12,351 ) —
(12,351 )
Net cash used in investing activities 482,089
(13,903 ) (52,608 ) 415,578
Cash flows from financing activities:
Debt prepayment and interest rate settlement costs paid (17,921 ) —
—
(17,921 )
Borrowings, net of fees 348,691
431,889
—
780,580
Repayments (250,000 ) (702,000 ) (43,070 ) (995,070 )
Distributions (148,474 ) —
—
(148,474 )
Repurchases of common stock (26,186 ) —
—
(26,186 )
Intercompany contributions (distributions) (220,389 ) 317,340
(96,951 ) —
Net cash provided by (used in) financing activities (314,279 ) 47,229
(140,021 ) (407,071 )
Net decrease in cash and cash equivalents 168,445
(5,626 ) (4,608 ) 158,211
Cash and cash equivalents, beginning of period 989
14,969
16,687
32,645
Cash and cash equivalents, end of period $ 169,434
$ 9,343
$ 12,079
$ 190,856



	For the Three Months Ended June 30, 2017
	Columbia Property Trust (Parent) (Guarantor)			Columbia Property Trust OP (the Issuer)			Non- Guarantors		Consolidating Adjustments			Columbia Property Trust (Consolidated)
Net income (loss)	$	1,133		$	(6,107	)	$	10,827	$	(4,720	)	$	1,133
Market value adjustments to interest rate swaps	(636		)	(636		)	—		636			(636		)
Comprehensive income (loss)	$	497		$	(6,743	)	$	10,827	$	(4,084	)	$	497



	For the Three Months Ended June 30, 2016
	Columbia Property Trust (Parent) (Guarantor)			Columbia Property Trust OP (the Issuer)			Non- Guarantors		Consolidating Adjustments			Columbia Property Trust (Consolidated)
Net income	$	13,286		$	5,422		$	21,906	$	(27,328	)	$	13,286
Market value adjustments to interest rate swaps	(2,022		)	(2,022		)	—		2,022			(2,022		)
Comprehensive income	$	11,264		$	3,400		$	21,906	$	(25,306	)	$	11,264



	For the Six Months Ended June 30, 2017
	Columbia Property Trust (Parent) (Guarantor)			Columbia Property Trust OP (the Issuer)			Non- Guarantors		Consolidating Adjustments			Columbia Property Trust (Consolidated)
Net income	$	75,855		$	57,138		$	82,978	$	(140,116	)	$	75,855
Market value adjustments to interest rate swaps	(2		)	(2		)	—		2			(2		)
Comprehensive income	$	75,853		$	57,136		$	82,978	$	(140,114	)	$	75,853



	For the Six Months Ended June 30, 2016
	Columbia Property Trust (Parent) (Guarantor)			Columbia Property Trust OP (the Issuer)			Non- Guarantors		Consolidating Adjustments			Columbia Property Trust (Consolidated)
Net income	$	19,983		$	3,597		$	37,489	$	(41,086	)	$	19,983
Market value adjustments to interest rate swaps	(6,879		)	(6,879		)	—		6,879			(6,879		)
Comprehensive income (loss)	$	13,104		$	(3,282	)	$	37,489	$	(34,207	)	$	13,104

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Consolidating Statements of Cash Flows (in thousands)


	For the Nine Months Ended September 30, 2015															For the Six Months Ended June 30, 2017
	Columbia Property Trust (Parent) (Guarantor)			Columbia Property Trust OP (the Issuer)			Non- Guarantors			Eliminations			Columbia Property Trust (Consolidated)			Columbia Property Trust (Parent) (Guarantor)			Columbia Property Trust OP (the Issuer)			Non- Guarantors			Eliminations			Columbia Property Trust (Consolidated)
Cash flows from operating activities	$	(107	)	$	(37,391	)	$	212,477		$	—		$	174,979		$	58,752		$	58,688		$	58,639		$	(140,116	)	$	35,963
Cash flows from investing activities:
Net proceeds from sale of real estate	10,727			411,398			—			—			422,125			—			49,531			455,129			—			504,660
Investment in real estate and related assets	(57,198		)	(1,006,340		)	(77,982		)	—			(1,141,520		)	(12,000		)	(400		)	(45,463		)	—			(57,863		)
Investment in subsidiaries	(1,065,695		)	—			—			1,065,695			—
Net cash used in investing activities	(1,112,166		)	(594,942		)	(77,982		)	1,065,695			(719,395		)
Investment in unconsolidated joint venture																—			(1,940		)	—			—			(1,940		)
Distributions from subsidiaries																385,554			331,630			—			(717,184		)	—
Net cash provided by investing activities																373,554			378,821			409,666			(717,184		)	444,857
Cash flows from financing activities:
Debt prepayment and interest rate swap settlement costs paid	—			(1,102		)	(2,063		)	—			(3,165		)
Borrowings, net of fees	—			2,193,900			—			—			2,193,900			—			(70		)	—			—			(70		)
Repayments of line of credit and notes payable	—			(1,290,000		)	(335,187		)	—			(1,625,187		)
Repayments																—			—			(75,830		)	—			(75,830		)
Distributions	(112,570		)	—			—			—			(112,570		)	(85,505		)	(447,367		)	(409,933		)	857,300			(85,505		)
Repurchases of common stock	(13,529		)	—			—			—			(13,529		)	(28,962		)	—			—			—			(28,962		)
Intercompany contributions (distributions)	1,121,404			(268,560		)	212,851			(1,065,695		)	—
Net cash provided by (used in) financing activities	995,305			634,238			(124,399		)	(1,065,695		)	439,449			(114,467		)	(447,437		)	(485,763		)	857,300			(190,367		)
Net increase (decrease) in cash and cash equivalents	(116,968		)	1,905			10,096			—			(104,967		)	317,839			(9,928		)	(17,458		)	—			290,453
Cash and cash equivalents, beginning of period	119,488			10,504			19,798			—			149,790			174,420			16,509			25,156			—			216,085
Cash and cash equivalents, end of period	$	2,520		$	12,409		$	29,894		$	—		$	44,823		$	492,259		$	6,581		$	7,698		$	—		$	506,538

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Table of Contents



	For the Six Months Ended June 30, 2016
	Columbia Property Trust (Parent) (Guarantor)			Columbia Property Trust OP (the Issuer)			Non- Guarantors			Eliminations			Columbia Property Trust (Consolidated)
Cash flows from operating activities	$	4,009		$	11,635		$	114,880		$	(41,086	)	$	89,438
Cash flows from investing activities:
Net proceeds from sales of real estate⁽¹⁾	—			—			159,387			—			159,387
Investment in real estate and related assets	—			(755		)	(35,729		)	—			(36,484		)
Investment in unconsolidated joint venture	—			(8,728		)	—			—			(8,728		)
Distributions from subsidiaries⁽²⁾	133,891			151,470			—			(285,361		)	—
Net cash provided by investing activities	133,891			141,987			123,658			(285,361		)	114,175
Cash flows from financing activities:
Borrowings, net of fees	—			214,861			—			—			214,861
Repayments of line of credit and notes payable	—			(248,000		)	(41,697		)	—			(289,697		)
Distributions⁽³⁾	(111,433		)	(125,011		)	(201,436		)	326,447			(111,433		)
Repurchases of common stock	(26,186		)	—			—			—			(26,186		)
Net cash used in financing activities	(137,619		)	(158,150		)	(243,133		)	326,447			(212,455		)
Net increase (decrease) in cash and cash equivalents	281			(4,528		)	(4,595		)	—			(8,842		)
Cash and cash equivalents, beginning of period	989			14,969			16,687			—			32,645
Cash and cash equivalents, end of period	$	1,270		$	10,441		$	12,092		$	—		$	23,803


⁽¹⁾	Net proceeds from sales of real estate increased (decreased) by $(159.4) million and $159.4 million for the parent and non-guarantors, respectively.


⁽²⁾	Distributions from subsidiaries increased (decreased) by $133.9 million, $151.5 million, and $(285.4) million for the parent, issuer, and eliminations, respectively.


⁽³⁾	Distributions (increased) decreased by $(125.0) million, $(201.4) million, and $326.4 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.

Page 33

Table of Contents

~~12.~~13. Subsequent Event

Columbia Property Trust has evaluated subsequent events in connection with the preparation of ~~its~~the consolidated financial statements and notes thereto included in this report on Form 10-Q and noted the following ~~item~~ in addition to those disclosed elsewhere in this report:

~~Property Disposition~~

~~During October 2016, Columbia Property Trust closed on the sale of the 9127 South Jamaica Street building in Denver, Colorado,~~Allianz Joint Ventures as described in Note 3, Real Estate ~~Transactions.~~Transactions; and

Amendment of $150 Million Term Loan, as described in Note 5, Line of Credit and Notes Payable.

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Table of Contents


ITEM 2.	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis should be read in conjunction with our accompanying consolidated financial statements (and notes thereto) and the "Cautionary Note Regarding Forward-Looking Statements" preceding Part I of this report, as well as our consolidated financial statements (and the notes thereto) and Management's Discussion and Analysis of Financial Condition and Results of Operations included in our ~~2015~~2016 Form 10-K.

Executive Summary

~~Our~~Our primary strategic objective is to generate long-term shareholder returns ~~through~~from a combination of ~~steadily~~ growing cash flows and appreciation in the values of our ~~net asset values, with a focus on~~properties, through the acquisition and ownership of high-quality office properties principally located in high-barrier-to-entry markets. ~~Capital recycling initiatives~~We typically pursue office building acquisitions that are ~~enabling us to improve~~competitive within the top tier of their markets or that will be repositioned as such through value-add initiatives. In addition, our ~~concentration in key markets~~investment objectives include optimizing our portfolio allocation between stabilized investments and more growth-oriented, value-add investments, with an emphasis on central business districts ~~as well as to reduce~~and multi-tenant buildings.

At the beginning of the year, we completed our ~~exposure to single-tenant assets. During 2015~~near-term disposition program with the sale of the Houston and ~~2016,~~Cleveland assets for $539.5 million. Since 2011, we have sold 16more than 50 properties ~~situated in outlying markets~~ for ~~approximately $1.0~~over $3.3 billion, and reinvested $2.3 billion of those proceeds in acquisitions in New York, ~~and~~San Francisco, Boston, and in targeted capital ~~improvements.~~improvements for our existing portfolio. We are ~~continuing to explore~~currently focused on reinvesting the ~~sale of~~remaining proceeds into additional ~~non-core assets and pursue additional investment~~ opportunities inwithin our ~~key markets,~~target markets:

We recently established a strategic partnership with Allianz, which will ~~allow~~enable us to increase our ~~portfolio allocations~~scale in key markets on a leverage-neutral basis. On July 6, 2017, we consummated the partnership by simultaneously selling partial interests in two of our San Francisco properties, 333 Market Street and University Circle, to ~~central business districts~~Allianz for $234.0 million, and ~~multi-tenant buildings, and at the same time, optimize our portfolio allocation between traditional, stabilized core~~by acquiring a partial interest in 114 Fifth Avenue in Manhattan from Allianz for $108.9 million. We expect to make additional joint investments ~~and growth-oriented, value-add investments. While transitioning~~with Allianz.

We are also under contract to purchase 149 Madison Avenue in New York, a 12-story, 127,000-square-foot office building, with closing expected later this year. We plan to fully redevelop this property as modern boutique office space.

Transitioning the portfolio from primarily suburban single tenant buildings to ~~more growth-oriented, value-add properties is likely to cause~~primarily multi-tenant CBD buildings has caused some dilution in ~~earnings for a period of time,~~earnings; however, we believe that this transition will improve ~~the opportunity for~~our growth potential over the ~~longer~~long term.

~~We are continuing~~Leasing continues to ~~proactively manage our~~be a key area of focus, for both vacant space and upcoming ~~lease~~ expirations. ~~During 2016,~~Through the first six months of 2017, we have leased ~~783,752~~605,000 square feet of ~~space.~~ space and addressed some of our most significant vacancies:

In ~~April,~~San Francisco, at 650 California Street, we executed a ~~30-year, full building~~12-year, 61,000-square-foot lease ~~of 390,000-square feet at the 222 East 41st Street property~~with WeWork in February; an eight-year, 86,000-square-foot lease with Affirm in April; and a 22,000-square-foot renewal and expansion with an existing tenant in April.

In New York, ~~which replaces~~at 229 West 43rd Street, we amended Snap Inc.'s lease in February to expand its space by 26,000 square feet to a total of 121,000 square feet, and to extend the lease ~~for the majority of the building that was scheduled~~ to ~~expire later this year; and in June~~2027.

In Atlanta, at One Glenlake, we executed a ~~130,000-square foot~~10-year, 66,000-square-foot lease in April, and an 11-year, 40,000-square-foot lease renewal and expansion in June along with several smaller leases during the second quarter to bring the building to 100% leased at the SanTan Corporate Center in Phoenix, Arizona, resulting in a slight rent roll up, with a long-time tenant occupying the entirety of one of the two buildings at the property; and a 35,000-square-foot lease at the 315 Park Avenue South Building in New York, which brought the property to 97% leased.quarter end.

We continue to ~~support~~maintain a flexible balance sheet ~~by maintaining~~with low leverage ~~with~~and an emphasis on unsecured ~~borrowings. During 2015 and 2016, we have refinanced approximately $1.3 billion~~borrowings, with weighted average maturities of ~~unsecured debt and repaid $371.5 million of mortgage loans. As a result, over this period we have extended our weighted-average debt maturity from 3.3 years to 6.3~~5.9 years⁽¹⁾, ~~decreased our~~ weighted-average cost of borrowing ~~from 4.24% per annum to 3.61%~~of 3.70%⁽¹⁾ per annum, and ~~increased our~~an unencumbered pool of assets as a percentage of gross real estate assets ~~from 61.7% to 79.5%~~of 82%⁽¹⁾. Our ~~board has adopted a~~ stock repurchase program ~~that authorizes~~allows us to ~~purchase up~~take advantage of market opportunities when our stock is undervalued from time to ~~$200.0~~time. In the second quarter of 2017, we repurchased $27.5 million of our common stock ~~through September~~(1.3 million shares at an average price of ~~2017. We believe such a program enables us to benefit from market downturns, which may cause our stock to be undervalued from time to time.~~$21.95 per share). To date, under our current repurchase program, we have ~~purchased~~repurchased an aggregate of ~~$41.3~~$96.5 million of common stock ~~including $25.0 million purchased in early 2016.~~at an average price of $22.08.


⁽¹⁾	Statistics ~~(i)~~ include 51% of the debt held by ~~the~~ the Market Square Joint Venture in which we own ~~a 51%~~an interest ~~and (ii) are adjusted for the repayment of the outstanding balance of our Revolving Credit Facility of $99.0 million, which occurred on October 3, 2016.~~through an unconsolidated joint venture.

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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 quarter-end average portfolio percentage leased ranged from 90.6% at December 31, 2016 to ~~93.3%.~~95.3% at June 30, 2017. The following table sets forth details related to recent leasing activities, which drive changes in our rental revenues:

Three Months Ended September 30, Nine Months Ended September 30,
2016 2015 2016 2015
Total number of leases 11
16
32
53
Lease term (months) 82
101
341
107
Square feet of leasing - renewal 92,625
⁽¹⁾
18,560
253,099
⁽¹⁾
163,315
Square feet of leasing - new 34,388
⁽²⁾
120,446
530,653
⁽²⁾
371,053
Total square feet of leasing 127,013
139,006
783,752
534,368
Rent leasing spread - renewal⁽³⁾
26.3 % 8.5 % 25.8 % 47.0 %
Rent leasing spread - new⁽⁴⁾
— % 7.6 % 18.9 %
⁽⁵⁾
69.4 %
Rent leasing spread - all leases⁽³⁾⁽⁴⁾
26.3 % 7.7 % 19.2 % 62.7 %
Tenant improvements, per square foot - renewal $ 50.85
$ 11.19
$ 38.66
$ 24.36
Tenant improvements, per square foot - new $ 31.36
$ 39.84
$ 168.18
⁽⁵⁾
$ 62.13
Tenant improvements, per square foot - all leases $ 44.59
$ 38.37
$ 161.51
$ 53.43
Leasing commissions, per square foot - renewal $ 16.98
$ 7.43
$ 13.88
$ 14.35
Leasing commissions, per square foot - new $ 24.07
$ 23.51
$ 43.70
⁽⁵⁾
$ 29.05
Leasing commissions, per square foot - all leases $ 19.25
$ 22.68
$ 42.16
$ 25.67



	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Total number of leases	19			12			35			21
Square feet of leasing – renewal⁽¹⁾	69,580			148,489			204,936			160,474
Square feet of leasing – new⁽²⁾	248,771			447,026			389,329			496,265
Total square feet of leasing	318,351			595,515			594,265			656,739
Lease term (months)	108			361			114			352
Tenant improvements, per square foot – renewal	$	81.23		$	25.29		$	51.11		$	24.72
Tenant improvements, per square foot – new	$	97.29		$	174.94		$	83.70		$	170.08
Tenant improvements, per square foot – all leases	$	94.23		$	171.14		$	77.33		$	166.44
Leasing commissions, per square foot – renewal	$	19.45		$	10.39		$	15.50		$	10.34
Leasing commissions, per square foot – new	$	23.00		$	44.73		$	20.61		$	43.97
Leasing commissions, per square foot – all leases	$	22.32		$	43.86		$	19.61		$	43.13

Rent leasing spread – renewal⁽³⁾	74.8		%	25.9		%	44.0		%	25.3		%
Rent leasing spread – new⁽⁴⁾	96.9		%	15.4		%	133.1		%	18.9		%
Rent leasing spread – all leases⁽³⁾⁽⁴⁾	85.1		%	15.4		%	101.3		%	19.0		%

⁽¹⁾

Includes 51% of renewal leasing at the Market Square ~~Joint Venture, in~~buildings, which we own ~~a 51% interest.~~through an unconsolidated joint venture. There was ~~41,000~~11,000 square feet and 14,000 square feet of renewal leasing for the second quarter ~~to date~~of 2017 and ~~57,000~~2016, respectively, and 18,000 and 16,000 square feet of renewal leasing ~~year to date~~for the first six months of 2017 and 2016, respectively, at the Market Square Buildings.

⁽²⁾

Includes 51% of new leasing at the Market Square ~~Joint Venture, in~~buildings, which we own ~~a 51% interest.~~through an unconsolidated joint venture. There was ~~3,000~~4,000 square feet of new leasing for the second quarter ~~to date~~of 2016, and ~~12,000~~5,000 and 9,000 square feet of new leasing ~~year to date~~for the first six months of 2017 and 2016, respectively, at the Market Square Buildings.


⁽³⁾	Rent leasing spreads for renewal leases are calculated based on the change in base rental income measured on a straight-line basis.


⁽⁴⁾	Rent leasing spreads for new leases are calculated only for properties that have been vacant less than one year, and are measured on a straight-line basis.


⁽⁵⁾	In the second quarter of 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%, tenant improvements of $180.10 per square foot, and leasing commissions of $44.90 per square foot.

In ~~2015,~~2017, rent leasing spreads are significantly positive (85.1% and 101.3% for the quarter and six-month period ended June 30, 2017, respectively) due to leasing 188,000 square feet at 650 California Street in San Francisco. This leasing required significant tenant improvements; however, the net economic impact of leasing at 650 California Street is favorable. In 2016, rent leasing spreads were positive and tenant improvements per square foot were higher due to a 390,000-square-foot, 30-year lease ~~expansion and extension with the anchor tenant~~ at our ~~221 Main~~222 East 41st Street ~~building in San Francisco, California~~Property and a ~~new lease for 45,000 square feet at 315 Park Avenue South in New York. For the three months ended September 30, 2016, rent leasing spreads increased, primarily due to an 11,000-square foot, 9-year~~130,000-square-foot lease renewal at our ~~650 California Street~~SanTan Corporate Center property ~~(138%).~~in Phoenix, Arizona. Over the next 12 months, approximately ~~983,000~~168,000 square feet of leases at our ~~leases~~operating properties (approximately ~~11%~~3.1% of our ~~office~~ portfolio based on revenues) are scheduled to expire. ~~Approximately 451,000 of this total relates to properties currently being marketed for sale. The remainder of the~~These near-term expirations primarily relate to our properties in New York and San ~~Francisco. Overall, we~~Francisco, with 62,000 square feet of this space pre-leased. We currently expect to replace ~~these~~the remaining leases with starting rates above those currently in place at the properties.

Liquidity and Capital Resources

Overview

Cash flows generated from the operation of our properties are primarily used to fund recurring expenditures and stockholder dividends. ~~Our board of directors elected to maintain the quarterly stockholder distribution rate of $0.30 per share for the third quarter of 2016.~~ 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 consider 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. Investments in new property acquisitions and first-generation capital improvements are generally funded with capital proceeds from property sales, debt, or cash on hand. In order to adjust to a payout level consistent with our current investment objectives, beginning with the first quarter of 2017, our board of directors elected to reduce the quarterly stockholder distribution rate from $0.30 per share to $0.20 per share, and maintained

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this rate for the second quarter of 2017. We have transformed the composition of our portfolio by selling suburban assets and reinvesting in assets in high-barrier-to-entry markets, which offer lower initial yields and higher potential for growth over time. We believe this dividend rate is sustainable over the near and medium term and offers the potential for growth over the long term.

Short-term Liquidity and Capital Resources

During the ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2017, we generated net cash flows from operating activities of ~~$149.7~~$36.0 million, which ~~consists~~consisted primarily of receipts from tenants for rent and reimbursements, reduced by payments for operating costs, administrative expenses, and interest expense. During the same period, we paid total distributions to stockholders of ~~$148.5~~$85.5 million, which ~~includes~~included dividend payments ~~of $37.4~~for three quarters ($36.7 million for the fourth quarter of ~~2015~~2016 and ~~$111.1~~an aggregate of $48.8 million for the first ~~three~~and second quarters of ~~2016.~~2017).

During the ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2017, we ~~issued the 2026 Bonds Payable, generating~~sold five properties for net proceeds of ~~$348.7~~$504.7 million ~~which were~~and used ~~to prepay our $250 million 2018 Bonds Payable, originally due in April 2018, and for~~ the ~~related early redemption premium. The remaining bond~~ proceeds and the net proceeds of $482.1 million from current year property dispositions were used to pay down the outstanding balance on our Revolving Credit Facility, to repay the $119.0 million remaining on the $300 Million Bridge Loan, to repay the $39.0 million SanTan Corporate Center mortgage notes, to fund ~~$54.2~~the early repayment of the 221 Main Street building mortgage note for $73.0 million, of leasing and capital projects of $47.5 million, and share repurchases of $27.5 million. We intend to ~~redeem $26.2 million of~~reinvest the remaining proceeds in strategic acquisition opportunities within our ~~common stock.~~ target markets.

Over the short-term, we expect our primary sources of capital to be operating cash flows ~~select property dispositions,~~ and future debt financings. We expect that our principal demands for funds will be ~~operating expenses, distributions to stockholders,~~property acquisitions, capital improvements to our existing ~~assets,~~portfolio, stock repurchases, ~~property acquisitions,~~stockholder distributions, operating expenses, and interest and principal payments on current and maturing debt. We believe that we have adequate liquidity and capital resources to meet our current obligations as they come due. ~~We used the proceeds from 80 Park Plaza disposition, which closed on September 30, 2016, to fully pay down the remaining balance on our Revolving Credit Facility after quarter end.~~ As ~~a result,~~of July 24, 2017, we have access to the full $500.0 million capacity of the Revolving Credit Facility as well as $610.0 million of ~~October 25, 2016.~~cash on hand.

Long-term Liquidity and Capital Resources

Over the long term, we expect that our primary sources of capital will include operating cash flows, borrowing proceeds, and select property ~~dispositions, and proceeds from secured or unsecured borrowings.~~dispositions. We expect that our primary uses of capital will continue to include stockholder distributions; acquisitions; capital expenditures, such as building improvements, tenant improvements, and leasing costs; and repaying or refinancing debt.

Consistent with our financing objectives and ~~operational~~ strategy, we continue to maintain net debt levels historically less than 40% of the undepreciated cost of our ~~assets. Our debt-to-real-estate-asset ratio is calculated using~~assets over the ~~consolidated outstanding debt balance and real estate at cost.~~long term. As of ~~September~~June 30, ~~2016,~~2017, our ~~debt-to-real-estate-asset~~net-debt-to-real-estate-asset ratio ~~including~~was approximately 25.2%, which includes our 51% ofinterest in the debt and real estate atof the Market Square Joint ~~venture, in which we own a 51% interest, was approximately 35.7%.~~Venture. Our net-debt-to-real-estate-asset ratio is calculated using our debt balance, net of cash on hand, and real estate at cost.

Revolving Credit Facility

The Revolving Credit Facility has a capacity of $500.0 million and matures in July 2019, with two, six-month extension options. As of ~~September~~June 30, ~~2016,~~2017, we had anno outstanding ~~balance of $99.0 million~~borrowings on the Revolving Credit ~~Facility, which was repaid subsequent to quarter end.~~Facility. Amounts outstanding under the Revolving Credit Facility bear interest at LIBOR, plus an applicable margin ranging from 0.875% to 1.55% for LIBOR borrowings, or an alternate base rate, plus an applicable margin ranging from 0.00% to 0.55% 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, which provides for four accordion options for an aggregate amount of up to $400 million, subject to certain limitations.

Term Loans

The $300 Million Term Loan matures in July 2020 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% to 1.75% for LIBOR loans, or (ii) an alternate base rate, plus an applicable margin ranging from 0.00% to 0.75% for base-rate loans, based on our applicable credit rating.

The $150 ~~Million Term Loan~~million term loan matures in July 2022 (the "$150 Million Term Loan"). ~~The~~As of June 30, 2017, the $150 Million Term Loan ~~bears~~incurred interest, at our option, at either (i) LIBOR, plus an applicable margin ranging from 1.40% to 2.35% for LIBOR loans, or (ii) an alternate base rate, plus an applicable margin ranging from 0.40% to 1.35% for base-rate loans. ~~The interest rate on the $150 Million Term Loan is effectively fixed with an interest rate swap agreement. Based on the terms~~As of ~~the interest rate swap and our current credit rating,~~June 30, 2017, the interest rate on the $150 Million Term Loan iswas effectively fixed at 3.52% with an interest rate swap agreement on the LIBOR component of the rate, which is designated as a cash flow hedge.

Page 37

Million Term Loan are unchanged. The existing interest rate swap agreement effectively fixes the new interest rate at 3.07% per annum and retains its cash flow hedge designation.

Bonds Payable

In August 2016, we issued $350.0 million of ~~ten-year,~~10-year, unsecured 3.650% senior notes at 99.626% of their face value under our Universal Shelf Registration Statement (defined below). We received proceeds from the 2026 Bonds Payable, net of fees, of $346.4

~~Page 35~~

million, which were used to prepay our $250 million 2018 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 ~~ten-year,~~10-year, unsecured 4.150% senior notes at 99.859% of their face value under our Universal Shelf Registration Statement (defined below). We received proceeds from 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%. The principal amount of the 2025 Bonds Payable is due and payable on the maturity date, April 1, 2025.

Debt Covenants

Our ~~portfolio~~mortgage debt, ~~instruments,~~ the $300 Million Term Loan, the $150 Million Term Loan, the Revolving Credit Facility, the 2026 Bonds Payable and the 2025 Bonds Payable contain certain covenants and restrictions that require us to meet certain financial ratios. We believe we were in compliance with all of our debt covenants as of ~~September~~June 30, ~~2016~~2017. We expect to continue to be able to meet the requirements of our debt covenants over the next 12 months.

Universal Shelf Registration Statement

We have on file a universal shelf registration statement on Form S-3 (No. 333-198764) with the SEC (the "Universal Shelf Registration Statement"), which was effective upon filing in September 2014. The Universal Shelf Registration Statement provides us with future flexibility to offer, from time to time and in one or more offerings, debt securities, common stock, preferred stock, depositary shares, warrants, or any combination thereof. The terms of any such future offerings would be established at the time of an offering.

Contractual Commitments and Contingencies

As of ~~September~~June 30, ~~2016,~~2017, our contractual obligations will become payable in the following periods (in thousands):


Contractual Obligations	Total		2016		2017-2018		2019-2020		Thereafter		Total		2017		2018-2019		2020-2021		Thereafter
Debt obligations⁽¹⁾	$	1,690,742	$	1,390	$	153,587	$	520,015	$	1,015,750	$	1,514,523	$	51,898	$	146,875	$	300,000	$	1,015,750
Interest obligations on debt⁽¹⁾⁽²⁾	380,648		14,700		108,827		92,565		164,556		341,762		28,285		103,894		86,010		123,573
Capital lease obligations⁽³⁾	120,000		—		—		—		120,000		120,000		—		—		120,000		—
Operating lease obligations⁽⁴⁾	211,600		639		5,433		5,462		200,066		207,121		1,321		5,342		5,342		195,116
Total	$	2,402,990	$	16,729	$	267,847	$	618,042	$	1,500,372	$	2,183,406	$	81,504	$	256,111	$	511,352	$	1,334,439

⁽¹⁾

Includes 51% of the debt and interest obligations for the Market Square Joint Venture, in which we own ~~a 51% interest.~~through an unconsolidated joint venture. The Market Square Joint Venture holds a $325 million mortgage note on the Market Square Buildings, bearing interest at 5.07% and maturing on July 1, 2023. WeAs of June 30, 2017, we guarantee ~~$23.3~~$12.6 million of the Market Square Buildings mortgage note ~~payable~~ (see Note 7, Commitments & 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). Interest obligations on all other debt are measured at the contractual rate. See Item 3, Quantitative and Qualitative Disclosure About Market Risk, for more information regarding our interest rate swaps.

⁽³⁾

Amounts include principal obligations only. We made interest payments on these obligations of ~~$5.4~~$3.6 million during the ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2017, all of which ~~was~~were funded with interest income earned on the corresponding investments in development authority bonds. These obligations will be fully satisfied at maturity with equivalent investments in development authority bonds.

⁽⁴⁾

Reflects obligations related to ground leases at certain properties, as ~~describe~~described in Note 2, Summary of Significant Accounting Policies. 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 remaining commitment to contribute ~~$70.1~~$69.0 million toward leasehold improvements. ~~See Note 7,~~ ~~Commitments and Contingencies, for more information.~~

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Results of Operations

Overview

As of ~~September~~June 30, ~~2016,~~2017, we owned controlling interests in ~~24 office properties and one hotel.~~15 operating properties. As of ~~September~~June 30, ~~2016,~~2017, our ~~office~~ properties, including 51% of the Market Square Joint Venture, in which ~~Columbia Property Trust owns a 51% interest,~~we own through an unconsolidated joint venture, were approximately ~~90.7% leased, excluding the 9127 South Jamaica Street building, which was subsequently sold on October 12, 2016 (see Note 3, Real Estate Transactions).~~95.3% leased. Our operating results are impacted by recent ~~acquisition,~~ disposition ~~and joint venture~~ activity as set forth below. In the near-term, we expect real estate operating income to fluctuate, primarily based on ~~acquisitions, dispositions,~~investing and leasing activities.

Recent Dispositions

Recent Acquisitions
Property Location Rentable Square Footage Acquisition Date
Purchase Price⁽¹⁾
(in thousands)
2015
229 West 43rd Street New York, NY 481,000
August 4, 2015 $ 516,000
116 Huntington Avenue Boston, MA 271,000
January 8, 2015 $ 152,000
315 Park Avenue South New York, NY 327,000
January 7, 2015 $ 372,000
1881 Campus Commons Reston, VA 244,000
January 7, 2015 $ 64,000



Property	Location	Rentable Square Footage	Transaction Date	Sale Price⁽¹⁾ (in thousands)
2017
Key Center Tower & Marriott	Cleveland, OH	1,326,000	January 31, 2017	$	267,500
Houston Properties Sale:		1,187,000	January 6, 2017	$	272,000
5 Houston Center	Houston, TX	581,000
Energy Center I	Houston, TX	332,000
515 Post Oak	Houston, TX	274,000
2016
SanTan Corporate Center	Phoenix, AZ	267,000	December 15, 2016	$	58,500
Sterling Commerce	Dallas, TX	310,000	November 30, 2016	$	51,000
9127 South Jamaica Street	Denver, CO	108,000	October 12, 2016	$	19,500
80 Park Plaza	Newark, NJ	961,000	September 30, 2016	$	174,500
9189, 9191 & 9193 South Jamaica Street	Denver, CO	370,000	September 22, 2016	$	122,000
800 North Frederick	Suburban MD	393,000	July 8, 2016	$	48,000
100 East Pratt	Baltimore, MD	653,000	March 31, 2016	$	187,000


⁽¹⁾	Exclusive of transaction costs and purchase price ~~adjustments.~~adjustments

Recent Dispositions
Property Location Rentable Square Footage Transaction Date
Sale Price⁽¹⁾
(in thousands)
2016
9127 South Jamaica Street Denver, CO 108,000
October 12, 2016 $ 19,500
80 Park Plaza Newark, NJ 961,000
September 30, 2016 $ 174,500
9189, 9191 & 9193 South Jamaica Street Denver, CO 370,000
September 22, 2016 $ 122,000
800 North Frederick Suburban MD 393,000
July 8, 2016 $ 48,000
100 East Pratt Baltimore, MD 653,000
March 31, 2016 $ 187,000
2015
1881 Campus Commons Reston, VA 244,000
December 10, 2015 $ 65,000
11 Property Sale: 2,856,000
July 1, 2015 $ 433,250
170 Park Avenue Northern NJ 145,000

180 Park Avenue Northern NJ 224,000

1580 West Nursery Road Baltimore, MD 315,000

Acxiom Buildings 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


⁽¹⁾	~~Exclusive of transaction costs and purchase price adjustments.~~

Joint Venture
Property Contributed to Joint Venture Location % Sold / Retained Rentable Square Footage Closing Date Contributed Value
2015
Market Square Buildings Washington, D.C. 49%/51% 698,000
October 28, 2015 $ 595,000

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Comparison of the ~~three months ended September~~Three Months Ended June 30, ~~2016~~2017 with the ~~three months ended September~~Three Months Ended June 30, ~~2015~~2016

Rental income was ~~$87.6~~$67.1 million for the three months ended ~~September~~June 30, ~~2016,~~2017, which represents a decrease as compared with ~~$107.0~~$93.6 million for the three months ended ~~September~~June 30, ~~2015.~~2016. The decrease is primarily due to ~~transferring the Market Square Buildings to a joint venture ($8.7 million);~~ dispositions ($8.1 million); and vacancy at our 222 East 41st Street property ($5.8 million) as the full building is being prepared for NYU's Langone Medical lease to commence in the fourth quarter of 2016, partially offset by additional rental income from the acquisition of the 229 West 43rd Street Building in August 2015 ($3.226.2 million). We expect future rental income to fluctuate based on recent and future investing and leasing ~~acquisition, and disposition activity.~~activities.

Tenant reimbursements and property operating costs were ~~$17.1~~$7.0 million and ~~$39.1~~$21.8 million, respectively, for the three months ended ~~September~~June 30, ~~2016,~~2017, which reflects ~~a proportional decrease~~corresponding decreases as compared with ~~$22.6~~$18.7 million and ~~$46.5~~$40.2 million, respectively, for the three months ended ~~September~~June 30, 2015. The decrease in tenant reimbursements is due to the transfer of the Market Square Buildings to a joint venture ($2.2 million); dispositions ($2.0 million); and vacancy at our 222 East 41st Street property ($1.4 million) as the full building is being prepared for NYU's Langone Medical lease to commence in the fourth quarter of 2016, partially offset by additional tenant reimbursements from the acquisition of the 229 West 43rd Street Building ($1.0 million).2016. The decrease in property operating costs is ~~also~~primarily due to ~~the transfer of the Market Square Buildings to a joint venture~~dispositions ($~~5.0~~15.5 million) and ~~dispositions~~the new net lease at 222 East 41st Street ($3.3 million)~~, partially offset by additional property operating costs from~~. The decrease in tenant reimbursements is primarily due to dispositions ($9.1 million) and the ~~acquisition of the 229 West 43rd~~new net lease at 222 East 41st Street ~~Building~~ ($1.7 million). Tenant reimbursements and property operating costs are expected to fluctuate with leasing activity and changes in our portfolio.

Hotel income, net of hotel operating costs, was ~~$1.3~~$1.5 million for the three months ended ~~September~~June 30, ~~2016,~~2016. The Key Center Marriott was sold on January 31, 2017.

Other property income was $0.8 million for the three months ended June 30, 2017, which represents a decrease as compared with ~~$1.6~~$9.1 million for the three months ended ~~September~~June 30, ~~2015,~~2016, primarily due to earning an early termination fee of $6.2 million at 222 East 41^st Street in June 2016. The terminated lease was replaced with a ~~higher level of occupancy and corporate events at the hotel in the third quarter of 2015. The Key Center Marriott is under a firm sales contract, expected to close~~full-building lease, which commenced in the fourth quarter of 2016.

Other property operating income ~~was $2.3~~is expected to fluctuate in the future, based on additional lease restructuring activities and as a result of providing asset management services to the San Francisco Joint Ventures (see Note 3, Real Estate Transactions, of the accompanying financial statements).

Asset and property management fees remained stable at $0.3 million for the three months ended ~~September~~June 30, ~~2016,~~2017 and June 30, 2016. Future asset and property management fees are expected to remain stable in the near term, and may increase as a result of future investing activity.

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Table of Contents

Depreciation was $20.4 million for the three months ended June 30, 2017, which represents a decrease as compared with $28.5 million for the three months ended June 30, 2016. The decrease is primarily due to dispositions ($7.3 million). Depreciation is expected to fluctuate based on recent and future investing activity.

Amortization was $8.2 million for the three months ended June 30, 2017, which represents a decrease as compared with $14.9 million for the three months ended June 30, 2016. The decrease is primarily due to dispositions ($2.1 million) and intangibles written off due to the early termination or expiration of leases ($4.1 million). We expect future amortization to fluctuate, based on recent and future investing activity.

General and administrative expenses were $9.2 million for the three months ended June 30, 2017, which represents an increase as compared with ~~$1.1~~$7.8 million for the three months ended ~~September~~ June 30, ~~2015,~~2016, primarily due to ~~an early termination at~~vesting under our ~~222 East 41st Street property~~stock-based incentive compensation plan ($~~0.6~~1.1 million) ~~and management fees earned from the Market Square Joint Venture in 2016 ($0.6 million), as described in Note 4,~~ ~~Unconsolidated Joint Venture~~. The terminated space at our 222 East 41st Street property has been relet in a full-building lease, expected to commence later in 2016. Future other property income is expected to fluctuate, primarily as a result of lease restructuring and termination activities.

Asset and property management fees were $0.4 million for the three months ended September 30, 2016, which represents a decrease as compared with $0.5 million for the three months ended September 30, 2015, primarily due to transferring the Market Square Buildings to a joint venture in the fourth quarter of 2015. Future asset and prop~~erty management fees are expected to fluctuate primarily based on future acquisition and disposition activity.~~

~~Depreciation was $26.8 million for the three months ended September 30, 2016, which represents a decrease as c~~ompared with $32.4 million for the three months ended September 30, 2015, primarily due to transferring the Market Square Buildings to a joint venture ($3.4 million) and dispositions ($3.1 million), partially offset by additional depreciation from the acquisition of the 229 West 43rd Street Building in August 2015 ($0.7 million). Excluding the impact of additional acquisitions and dispositions, depreciation is expected to increase in future periods due to ongoing capital improvements at our existing properties.

~~Amortization w~~as ~~$11.9 million~~ ~~for the three months ended September 30, 2016, which represents a decrease as~~ ~~compared with$20.3 million for the three months ended~~ September 30, 2015. The decrease is primarily due to dispositions ($3.6 million); the expiration of leases ($2.4 million); the early termination of the lease at our 222 East 41st Street property ($1.3 million); and transferring the Market Square Buildings to a joint venture ($1.3 million), partially offset by additional amortization from the acquisition of the 229 West 43rd Street Building in August 2015 ($0.8 million). ~~We expect future amortization to fluctuate primarily as a result of future leasing activity, acquisitions, and dispositions.~~

~~General and administrative expenses wer~~e ~~$7.5 million~~ ~~for the three months ended September 30, 2016, which represents an increase as compared with $6.8 million for the three months ended~~ ~~September 30, 2015, primarily due to the continued development of our regional management and investment platform.~~ We expect future general and administrative expenses to remain at similar levels over the ~~near-term.~~

~~For the three months ended September 30, 2015, we incurred total acquisition expenses of $1.7 million in connection with acquiring the 229 West 43rd Street Building in August 2015. See Note 3,~~ ~~Real Estate Transactions, of the accompanying financial statements for details of this acquisitions. We expect future acquisition expenses to fluctuate with acquisition activity.~~near term.

Interest expense was ~~$17.1~~$14.5 million for the three months ended ~~September~~June 30, ~~2016,~~2017, which represents a decrease as compared with ~~$22.0~~$17.4 million for the three months ended ~~September~~June 30, ~~2015,~~2016, primarily due to ~~transferring the Market Square~~ mortgage note to

~~Page 38~~

~~Table~~payoffs ($1.5 million), incurring interest on our line of ~~Contents~~

~~a joint venture~~credit borrowings in the prior period ($~~4.1 million); the repayment of mortgage notes ($0.7 million); and a bridge loan outstanding during the third quarter of 2015 ($0.7~~1.0 million), ~~partially reduced by~~and bond interest savings resulting from the ~~impact~~issuance of the 2026 Bonds Payable and redemption of the 2018 Bonds Payable in 2016 ($~~0.6~~0.5 million). We expect interest expense to ~~continue to~~ decrease ~~slightly~~ in the near-term ~~as disposition proceeds are used~~due to ~~reduce borrowings~~the $150 Million Term Loan amendment, which results in a lower effective interest rate, and to fluctuate based on ~~our Revolving Credit Facility.~~future acquisition activities.

Interest and other income was ~~stable at~~$2.5 million for the three months ended June 30, 2017, which represents an increase compared with $1.8 million for the three months ended ~~September~~June 30, ~~2016 and 2015. Interest~~2016. The increase is due to interest income ~~is expected to remain at comparable levels~~earned on additional cash deposits held in ~~future periods, as the~~2017 ($0.6 million). The majority of this income is earned on investments in development authority bonds with a remaining term of approximately ~~5.3~~4.5 years as of ~~September~~June 30, ~~2016.~~2017 ($1.8 million for both the three months ended June 30, 2017 and June 30, 2016). Interest income earned on development authority bonds is entirely offset by interest expense incurred on the corresponding capital leases. Interest income is expected to remain at similar levels until we reinvest cash on hand.

We recognized a loss on ~~interest rate swaps~~early extinguishment of ~~$1.1~~debt of $0.1 million for the three months ended ~~September~~June 30, 2015, related to the 333 Market Street Building mortgage note, which was repaid in June 2015. We do not anticipate gains and losses on interest rate swaps in the near-term, as our only interest rate swap is accounted for as a hedge; thus, changes in the market value are recorded to other comprehensive income.

~~We recognized a loss on early extinguishment of debt of $18.9 million and $2.7 million for the three months ended September 30, 2016 and 2015, respectively.~~2016. In ~~September~~April 2016, we repaid ~~our 2018 Bonds Payable 1.6 years~~the $119.0 million remaining balance on a bridge loan approximately three months early, ~~using proceeds from the 2026 Bonds Payable, resulting~~which resulted in ~~an early redemption premium of $17.9 million and~~ the write-off of related deferred financing costs. ~~The 2015 loss was primarily due to a prepayment premium to settle the 215 Diehl Road building mortgage note in connection with selling the property in the 11 Property Sale.~~ We expect future gains or losses on early extinguishments of debt to fluctuate with financing activities.

~~We recognized a loss~~Loss from the unconsolidated joint ~~ventur~~e ~~of $1.9~~venture was relatively stable at $1.8 million and $2.0 million for the three months ended ~~September~~June 30, 2017 and June 30, 2016, ~~as real estate operating income from the Market Square Buildings was reduced by interest incurred on the property's $325 million mortgage note.~~respectively. Future income or loss from unconsolidated joint venture ~~will~~may fluctuate ~~with~~as a result of future investing activities and leasing ~~and other operating activities~~ at the Market Square Buildings.

~~Net Income~~

Net income was ~~$36.9~~$1.1 million, or ~~$0.30~~$0.01 per basic and diluted share, for the three months ended ~~September~~June 30, ~~2016,~~2017, which represents ~~an increase~~a decrease as compared with ~~$20.1~~$13.3 million, or ~~$0.16~~$0.11 per basic and diluted share, for the three months ended~~September~~ June 30, ~~2015~~.2016. The ~~increase~~decrease is due to ~~additional quarter-over-quarter gains on sales of real estate~~lost income from sold properties ($~~30.2~~10.2 million) and the lease termination income earned in June 2016 ($6.2 million), partially offset by ~~additional loss on early extinguishment~~interest savings as a result of debt repayments ($~~16.2~~3.0 million) ~~related to replacing our $250.0 million 2018 unsecured bonds payable at 5.875% with $350.0 million of 2026 unsecured bonds payable at 3.650%, in the third quarter of 2016. S~~ee. See the "Supplemental Performance Measures" section below for our ~~same store~~same-store results compared with the prior year. We expect future earnings to fluctuate as a result of leasing activity at our existing properties ~~our planned near-term dispositions,~~ and ~~acquisition~~investing activity.

Comparison of the ~~nine months~~Six Months ended ~~September~~June 30, ~~2016~~2017 with the ~~nine months ended September~~Six Months Ended June 30, ~~2015~~2016

Rental income was ~~$280.7~~$138.3 million for the ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2017, which ~~represen~~tsrepresents a decrease as compared with ~~$332.7~~$193.2 million for the ~~three~~six months ended ~~September~~June 30, ~~2015.~~2016. The decrease is primarily due to dispositions ($38.4 million); transferring the Market Square Buildings to a joint venture ($28.3 million); and vacancy at our 222 East 41st Street property ($5.7 million) as the full building is being prepared for NYU's Langone Medical lease to commence in the fourth quarter of 2016, partially offset by additional rental income from the acquisition of the 229 West 43rd Street Building in August 2015 ($19.952.9 million). We expect future rental income to fluctuate based on recent and future investing and leasing ~~acquisition, and disposition~~ activity.

Tenant reimbursements and property operating costs ~~wer~~e ~~$55.6~~were $15.6 million and ~~$120.7~~$45.9 million, respectively, for the ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2017, which reflects ~~a proportional decrease a~~scorresponding decreases as compared with ~~$77.4~~$38.5 million and ~~$144.4~~$81.6 million, ~~respectively,~~respectively, for the ~~nine~~six months ended ~~September~~June 30, ~~2015.~~ The decrease in tenant reimbursements is due to dispositions ($11.5 million) and the transfer of the Market Square Buildings to a joint venture ($8.6 million), partially offset by additional tenant reimbursements from the acquisition of the 229 West 43rd Street Building ($2.9 million).2016. The decrease in property operating costs is ~~also~~primarily due to dispositions ($~~16.3~~31.0 million) and the ~~transfer of~~new net lease at 222 East 41st Street ($6.0 million). The decrease in tenant reimbursements is primarily due to dispositions ($19.4 million) and the ~~Market Square Buildings to a joint venture~~new net lease at 222 East 41st Street ($~~14.9 million), partially offset by additional property operating costs from the acquisition of the 229 West 43rd Street Building ($6.9~~2.8 million). Tenant ~~reimbursements~~reimbursements and property operating costs are expected to fluctuate with leasing activity and changes in our portfolio.

Hotel income, net of hotel operating costs, was ~~$3.2~~$(0.7) million for the ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2017, which represents a decrease as compared with ~~$3.8~~$1.8 million for the ~~nine~~six months ended ~~September~~June 30, ~~2015, primarily~~2016, due to ~~a higher level~~the sale of ~~group bookings and meetings at~~ the ~~hotel in 2015. The~~ Key Center Marriott ~~is under a firm sales contract, expected to close in the fourth quarter of 2016.~~on January 31, 2017.

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Other property ~~inco~~meincome was ~~$14.0 million~~ ~~for the nine months ended September 30, 2016, which represents~~ ~~an increase as~~ ~~compared with$4.4~~$1.8 million for the ~~nine month~~s ended September 30, 2015, primarily due to an early termination at our 222 East 41st Street property ($6.2 million) and management fees earned from the Market Square Joint Venture in 2016 ($1.9 million), as described in Note 4, ~~Unconsolidated Joint Venture. The terminated space has been relet in a full-building lease expected to commence later in 2016. Future other property income is expected to fluctuate, primarily as a result of lease restructuring and termination activities.~~

~~Asset and property management fees were $1.1 million for the nine~~six months ended ~~September~~June 30, ~~2016,~~2017, which represents a decrease as compared with ~~$1.4~~$11.7 million for the ~~nine~~six months ended ~~September~~June 30, ~~2015,~~2016, primarily due to ~~transferring the Market Square Buildings to~~earning an early termination fee of $6.2 million at 222 East 41st Street in June 2016 and $2.8 million for other lease terminations. The terminated lease at 222 East 41st Street was replaced with a ~~joint venture~~full-building lease, which commenced in the fourth quarter of ~~2015. Future asset~~ ~~and~~2016. Other property ~~management fees are~~operating income is expected to fluctuate ~~with~~in the future ~~acquisition~~based on additional lease restructuring activities, and ~~disposition activity.~~

~~Depreciation~~ ~~was~~ ~~$84.5 million for the nine months ended September 30, 2016, which represents a decrease as~~ ~~compared with $100.3 million for the nine months ended~~ September 30, 2015, primarily due to dispositions ($12.8 million) and transferring the Market Square Buildings to a joint venture ($10.6 million), partially offset by additional depreciation from the acquisition of the 229 West 43rd Street Building in August 2015 ($5.4 million). Excluding the impact of additional acquisitions and dispositions, ~~depreciation is expected to increase in future periods due to ongoing capital~~ ~~improvements at our existing properties.~~

~~Amortization~~ wa~~s $42.9 million for the nine months ended September 30, 2016, which represents a decrease as compared with $67.2 million for the nine~~ ~~months endedSeptember 30, 2015.~~ The decrease is primarily due to dispositions ($13.5 million); the expiration of leases ($8.1 million); and transferring the Market Square Buildings to a joint venture ($5.6 million); partially offset by additional amortization from the acquisition of the 229 West 43rd Street Building in August 2015 ($3.5 million). ~~We expect future amortization to fluctuate primarily~~ as a result of ~~future leasing activity, acquisitions, and dispositions.~~

~~General and administrative expenses w~~e~~re $25.7 million for~~providing asset management services to the nine months ended September 30, 2016, which represents an increase as compared with $21.9 million for the nine months ended September 30, 2015. The increase is due to costs incurred to develop our regional management and investment platform ($3.1 million) and bad debt expenses ($0.5 million). We expect future general and administrative expenses to remain stable over the near-term.

For the nine months ended September 30, 2015, we incurred total acquisition expenses of $3.7 million in connection with acquiring three properties in January 2015 and the 229 West 43rd Street Building in August 2015. SeeSan Francisco Joint Ventures (see Note 3, Real Estate Transactions, of the accompanying financial ~~statements for details of these acquisitions. We expect future acquisition expenses to fluctuate with acquisition activity.~~statements).

~~Interest expense was $52.4~~Asset and property management fees were $0.5 million for the ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2017, which represents a decrease as compared with ~~$66.3~~$0.7 million and June 30, 2016, due to dispositions ($0.2 million). Future asset and property management fees are expected to remain stable in the near-term and may increase as a result of future investing activity.

Depreciation was $42.0 million for the ~~nine~~six months ended ~~September~~June 30, ~~2015,~~2017, which represents a decrease as compared with $57.7 million for the six months ended June 30, 2016. The decrease is primarily due to ~~transferring~~dispositions ($15.5 million). Depreciation is expected to fluctuate based on recent and future investing activity.

Amortization was $17.6 million for the ~~Market Square~~six months ended June 30, 2017, which represents a decrease as compared with $31.0 million for the six months ended June 30, 2016. The decrease is primarily due to dispositions ($5.9 million) and intangibles written off due to the early termination or expiration of leases ($6.6 million). We expect future amortization to fluctuate based on recent and future investing activity.

General and administrative expenses remained relatively stable at $18.0 million and $18.3 million for the six months ended June 30, 2017 and June 30, 2016, respectively. We expect future general and administrative expenses to remain at similar levels over the near term.

Interest expense was $29.6 million for the six months ended June 30, 2017, which represents a decrease as compared with $35.3 million for the six months ended June 30, 2016, primarily due to incurring interest on bridge loan and line of credit borrowings in the prior period ($2.5 million), mortgage note ~~to a joint venture~~payoffs ($~~12.4 million) and repaying mortgage loans ($4.7~~2.1 million), ~~partially offset by the net impact of~~and bond interest savings resulting from the issuance of ~~bonds in March 2015~~the 2026 Bonds Payable and ~~August 2016~~redemption of the 2018 Bonds Payable ($~~3.5~~1.0 million). We expect interest expense to ~~continue to~~ decrease ~~slightly~~ in the ~~near-term as disposition proceeds are used~~near term due to ~~reduce borrowings~~the $150 Million Term Loan amendment, which results in a lower effective interest rate, and to fluctuate based on ~~our Revolving Credit Facility.~~future acquisition activities.

Interest and other income was ~~stable at $5.5 million and $5.4~~$4.8 million for the ~~nine~~six months ended ~~September~~June 30, ~~2016 and 2015, respectively. Interest~~2017, which represents an increase compared with $3.6 million for the six months ended June 30, 2016. The increase is due to interest income ~~is expected to remain at comparable levels in future periods, as the~~earned on cash deposits ($1.1 million). The majority of this income is earned on investments in development authority bonds with a remaining term of ~~approximately 5.3~~approximately 4.5 years as of ~~September~~June 30, ~~2016.~~2017 ($3.6 million for both the six months ended June 30, 2017 and June 30, 2016). Interest income earned on development authority bonds is entirely offset by interest expense incurred on the ~~corresponding~~corresponding capital leases.

~~We recognized a loss~~ Interest income is expected to remain at similar levels until we reinvest cash on interest rate swaps of $1.1 million for the nine months ended September 30, 2015, related to the 333 Market Street Building mortgage note, which was repaid in June 2015. We do not anticipate gains and losses on interest rate swaps in the near-term, as our only interest rate swap is accounted for as a hedge; thus, changes in the market value are recorded to other comprehensive income.hand.

We recognized a loss on early extinguishment of debt o~~f $19.0 million~~of $45,000 and ~~$3.1 million~~$92,000 for the ~~nine~~six months ended ~~September~~June 30, 2017 and June 30, 2016, ~~and 2015,~~ respectively. In March 2017, we repaid the 221 Main Street building mortgage note approximately two months early; and in April 2016, we repaid the $119.0 million remaining balance on a bridge loan ~~used to finance a portion of the acquisition of the 229 West 43rd Street Building~~ approximately three months early, and in September 2016, we repaid our 2018 Bonds Payable 1.6 years early, using proceeds from the 2026 Bonds Payable. In March 2015, we repaid a bridge loan used to finance acquisitions in Januaryearly. Both of ~~2015 approximately four months early. The bond pay off in 2016 resulted in an early redemption premium of $17.9 million, and all of the~~these early repayments resulted in the write-off of related deferred financing costs. We expect future gains or losses on early extinguishments of debt to fluctuate with financing activities.

We recognized a loss from the unconsolidated joint v~~enture~~venture of ~~$5.4~~$3.7 million and $3.5 million for the ~~nine~~six months ended ~~September~~June 30, 2017 and June 30, 2016, ~~as real estate operating income from the Market Square Buildings was reduced by interest incurred on the property's $325 million mortgage note.~~respectively. Future income or loss from unconsolidated joint venture willmay fluctuate ~~with operating activity~~as a result of future investing activities and leasing at the Market Square Buildings.

We recognized a gain on sale of real estate assets of $73.2 million for the six months ended June 30, 2017, and a loss on sale of real estate assets of $0.3 million for the six months ended June 30, 2016. During the first three months of 2017, we sold three properties in Houston, Texas, and the Key Center Tower and Marriott in Cleveland, Ohio. The loss in 2016 results from post-closing adjustments and true ups for prior period transactions. See Note 3, Real Estate Transactions, for details of these transactions. Future gains on sale of real estate assets will fluctuate with future disposition activity.

Net income was $75.9 million, or $0.62 per basic and diluted share, for the six months ended June 30, 2017, which represents an increase as compared with $20.0 million, or $0.16 per basic and diluted share, for the six months ended June 30, 2016. The increase is due to gains on sale of real estate ($73.2 million) and interest savings as a result of debt repayments ($5.6 million), partially offset by lost income from sold properties ($20.8 million) and lease termination income earned in June 2016 ($6.2 million). See the "Supplemental Performance Measures" section below for our same-store results compared with the prior year. We expect future earnings to fluctuate as a result of leasing activity at our existing properties and investing activity.

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~~Net Income~~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 June 30, 2017, 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 plan to make further investments.

The following table presents NOI by geographic segment (in thousands):



	Three Months Ended June 30,					Six Months Ended June 30,
	2017			2016		2017			2016
New York	$	16,259		$	24,086	$	33,875		$	41,135
San Francisco	19,701			19,381		39,567			40,452
Atlanta	8,285			8,226		16,578			16,507
Washington, D.C.	3,565			4,555		6,843			9,671
Boston	1,192			1,463		2,601			2,686
Los Angeles	1,202			1,192		2,284			2,442
All other office markets	4,597			23,605		11,527			52,388
Total office segments	54,801			82,508		113,275			165,281
Hotel	(14		)	1,523		(890		)	1,870
Corporate	395			517		847			1,066
Total	$	55,182		$	84,548	$	113,232		$	168,217

New York

~~Net income wa~~Prior-year NOI was positively impacted by an early termination fee earned at 222 East 41s ^st~~$56.9 million~~ Street in June 2016. The terminated lease was replaced with a full-building lease, which commenced in the fourth quarter of 2016. New York NOI is expected to increase in the near-term with the acquisition of a 49.5% interest in 114 5th Avenue, as described in Note 3, Real Estate Transactions, oof the accompanying, consolidated financial statements.~~r $0.46 per basic~~

Washington, D.C.

NOI has been impacted by a decrease in occupancy at 80 M Street and ~~diluted share, for~~Market Square. Washington, D.C. Over the ~~nine months ended September 30, 2016, which represents an~~near term, Washington, D.C. NOI is expected to increase ~~as compared with $34.5 million, or $0.28 per basic and diluted share, for the nine months ended September 30, 2015. The increase is~~primarily due to ~~additional year-over-year gains on sales of real estate ($29.9 million), partially offset by an net increase in interest expense and~~recent leasing activity at 80 M Street.

All other financing costs, including amounts related to our interest in the Market Square Joint Venture ($8.2 million). See "Supplemental Performance Measures" section below for our same store results compared with the prior year period. We expect future earnings to fluctuateoffice markets

NOI has decreased significantly as a result of ~~leasing activity~~selling 9 office properties between July 1, 2016 and January 31, 2017. We expect all other office markets NOI to further decrease in the near-term due to the expiration of the OfficeMax lease at 263 Shuman and the planned return of this property to the lender.

Hotel

NOI has decreased significantly as a result of the sale of the Key Center Marriott, our ~~existing properties, our planned near-term dispositions, and acquisition activity.~~only hotel, on January 31, 2017.

Supplemental Performance Measures

In addition to net income, we measure the performance of the company using certain non-GAAP supplemental performance measures, including: (i) Funds From Operations ("FFO"), (ii) Net Operating Income ("NOI"), and (iii) Same Store Net Operating Income ("Same Store NOI"). These non-GAAP metrics are commonly used by 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 assumes that the value 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. Management believes that the use of FFO, NOI, and Same Store NOI, combined with net income, improves the 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 exclude expenses that materially impact our overall results of operations and, therefore, should not be considered as a

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substitute for net income, income 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 From 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 ~~(losses)~~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.

FFO ~~does~~is not ~~represent~~reduced for the amounts ~~available for management's discretionary use because of~~ needed to fund capital ~~replacement~~replacements or ~~expansion,~~expansions, 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) or as an indicator of financial performance.

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~~Reconciliations of net~~Net income reconciles to FFO as follows (in thousands):


	Three Months Ended September 30,						Nine Months Ended September 30,						Three Months Ended June 30,				Six Months Ended June 30,
	2016			2015			2016			2015			2017		2016		2017			2016
Reconciliation of Net Income to FFO:
Net income	$	36,898		$	20,143		$	56,881		$	34,450		$	1,133	$	13,286	$	75,855		$	19,983
Adjustments:
Depreciation of real estate assets	26,778			32,441			84,517			100,261			20,423		28,450		42,028			57,739
Amortization of lease-related costs	11,895			20,276			42,902			67,233			8,191		14,932		17,648			31,007
Depreciation and amortization included in loss from unconsolidated joint venture⁽¹⁾	2,123			—			6,670			—			2,123		2,077		4,221			4,547
Gains on sales of real estate assets	(50,412		)	(20,182		)	(50,083		)	(20,182		)
Total Funds From Operations adjustments	(9,616		)	32,535			84,006			147,312
Loss (gains) on sales of real estate assets													—		19		(73,153		)	329
Total funds from operations adjustments													30,737		45,478		(9,256		)	93,622
NAREIT FFO available to common stockholders	$	27,282		$	52,678		$	140,887		$	181,762		$	31,870	$	58,764	$	66,599		$	113,605


⁽¹⁾	Reflects 51% of depreciation and amortization for the Market Square ~~Joint Venture, in~~buildings, which we own ~~a 51% interest.~~through an unconsolidated joint venture.

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.

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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 near-term effects of ~~changes in the composition of our portfolio.~~acquisitions and dispositions. On an individual property basis, Same Store NOI is computed in ~~a consistent~~the same manner as ~~NOI.~~NOI (as described in the preceding section). For the periods presented, we have defined our ~~same store~~same-store portfolio as those properties that have been continuously owned and ~~operating~~operated since ~~July~~April 1, ~~2015.~~2016 (the first day of the first period presented). NOI and Same Store NOI are calculated as follows for the three months ended ~~September~~June 30, ~~2016~~2017 and ~~2015~~2016 (in thousands):

Three Months Ended September 30,
2016 2015
Revenues:
Rental income $ 73,824
$ 77,467
Tenant reimbursements 11,735
16,301
Hotel income 6,270
6,941
Other property income 814
217
Lease termination income 1,518
637
Total revenues 94,161
101,563
Operating expenses:
Property operating costs (32,417 ) (33,202 )
Hotel operating costs (4,946 ) (5,331 )
Total operating expenses (37,363 ) (38,533 )
Same Store NOI - wholly-owned properties⁽¹⁾⁽²⁾
$ 56,798
$ 63,030
Same Store NOI - 51% of Market Square Buildings⁽³⁾
$ 2,301
$ 2,948

NOI from acquisitions⁽⁴⁾
6,909
4,330
NOI from dispositions⁽⁵⁾
5,143
15,070
NOI $ 71,151
$ 85,378



	Three Months Ended June 30,
	2017			2016
Revenues:
Rental income	$	67,120		$	67,379
Tenant reimbursements	7,038			9,687
Other property income	734			673
Lease termination income	(47		)	8,085
Total revenues	74,845			85,824
Property operating expenses	(21,987		)	(23,764		)
Same Store NOI – wholly owned properties⁽¹⁾	$	52,858		$	62,060
Same Store NOI – Market Square Buildings⁽²⁾	$	2,425		$	2,239
NOI from acquisitions⁽³⁾	—			—
NOI from dispositions⁽⁴⁾	(101		)	20,249
NOI	$	55,182		$	84,548


⁽¹⁾	Reflects NOI from properties that were ~~wholly-owned~~wholly owned for the entirety of the periods presented.

⁽²⁾

Same store NOI declined for the three months ended September 30, 2016, as compared to the same period in prior year, primarily due to leasing activity at 222 East 41st Street. In the second quarter of 2016, we terminated Jones Day’s lease, the majority tenant at 222 East 41st Street, and executed a new lease with NYU Langone Medical for the entire property. As a result, we earned a lease termination fee of $6.2 million from Jones Day in the second quarter in lieu of the rent due for third quarter of 2016. The NYU lease commenced in the fourth quarter of 2016.

⁽³⁾

Reflects NOI ~~from~~for 51% of the Market Square Buildings, ~~for all periods presented. On October 28, 2015,~~in which we ~~transferred the Market Square Buildings and the $325.0 million mortgage note to a joint venture, and sold a 49%~~own an interest ~~in the~~through an unconsolidated joint venture. ~~Our interest in~~The NOI ~~from~~for the Market Square Buildings is included in loss from unconsolidated joint venture ~~for the third quarter of 2016, and~~ in our accompanying consolidated ~~results~~statements of ~~operations for the third quarter of 2015.~~operations.


⁽³⁾	No properties have been acquired since April 1, 2016.


⁽⁴⁾	~~Reflects activity for the following property acquired since July 1, 2015, for all periods presented: 229 West 43~~^rd ~~Street~~

⁽⁵⁾

Reflects activity for the following properties sold since ~~July~~April 1, ~~2015,~~2016, for all periods presented: Key Center Tower & Key Center Marriott, 5 Houston Center, Energy Center I, 515 Post Oak, SanTan Corporate Center, Sterling Commerce, 80 Park Plaza, 9127, 9189, 9191 & 9193 South Jamaica Street, and 800 North Frederick, 100 East Pratt, 1881 Campus Commons, 49% of the Market Square Buildings, 170 Park Avenue, 180 Park Avenue, 1580 West Nursery Road, Acxiom, Highland Landmark III, The Corridors III, 215 Diehl Road, 544 Lakeview, Bannockburn Lake III, 550 King Street, and Robbins Road.Frederick.

Same store NOI decreased for the three months ended June 30, 2017, as compared with the three months ended June 30, 2016, due to a $6.2 million early termination fee earned at 222 East 41st Street in June 2016, and lease expirations at 315 Park Avenue South and 80 M Street. The terminated lease at 222 East 41st Street has been replaced with a full-building lease, which commenced in the fourth quarter of 2016, and most of the expired space at 80 M Street has been leased to WeWork, with a lease commencing in July 2017. The decline in same store NOI is expected to reverse and increase as a result of recent leasing activity.

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A reconciliation of ~~Net Income~~GAAP net income to NOI and Same Store NOI is presented below (in thousands):


	Three Months Ended September 30,						Three Months Ended June 30,
	2016			2015			2017			2016
Net income	$	36,898		$	20,143		$	1,133		$	13,286
Depreciation							20,423			28,450
Amortization							8,191			14,932
General and administrative							9,201			7,761
Net interest expense	17,116			22,004			13,785			17,372
Interest income from development authority bonds	(1,800		)	(1,800		)	(1,800		)	(1,800		)
Loss on early extinguishment of debt							—			92
Income tax expense	65			245			7			245
Depreciation	26,778			32,441
Amortization	11,895			20,276
Real estate acquisition costs	—			1,680
Gain on sale of real estate assets	(50,412		)	(20,182		)
Loss on early extinguishment of debt	18,905			2,672
General and administrative	7,467			6,797
Settlement of interest rate swaps	—			1,102
Adjustments include in loss from unconsolidated joint venture	4,239			—
NOI	$	71,151		$	85,378
Same Store NOI - 51% of Market Square Buildings⁽¹⁾	(2,301		)	(2,948		)
Adjustments included in loss from unconsolidated joint venture							4,242			4,191
Loss on sales of real estate assets							—			19
NOI:							$	55,182		$	84,548
Same Store NOI – Market Square Buildings⁽¹⁾							(2,425		)	(2,239		)
NOI from acquisitions⁽²⁾	(6,909		)	(4,330		)	—			—
NOI from dispositions⁽³⁾	(5,143		)	(15,070		)	101			(20,249		)
Same Store NOI - wholly-owned properties⁽⁴⁾	$	56,798		$	63,030
Same Store NOI – wholly owned properties⁽⁴⁾							$	52,858		$	62,060

⁽¹⁾


⁽²⁾	~~Reflects activity for the following property~~No properties have been acquired since ~~July~~April 1, ~~2015, for all periods presented: 229 West 43rd Street.~~2016.

⁽³⁾

Reflects activity for the following properties sold since ~~July~~April 1, ~~2015,~~2016, for all periods presented: Key Center Tower & Key Center Marriott, 5 Houston Center, Energy Center I, 515 Post Oak, SanTan Corporate Center, Sterling Commerce, 80 Park Plaza, 9127, 9189, 9191 & 9193 South Jamaica Street, and 800 North Frederick,100 East Pratt, 1881 Campus Commons, 49% of the Market Square Buildings, 170 Park Avenue, 180 Park Avenue, 1580 West Nursery Road, Acxiom, Highland Landmark III, The Corridors III, 215 Diehl Road, 544 Lakeview, Bannockburn Lake III, 550 King Street, and Robbins Road.Frederick.


⁽⁴⁾	Reflects NOI from properties that were ~~wholly-owned~~wholly owned for the entirety of the periods presented.

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. 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.

The TRS Entities are wholly owned subsidiaries of Columbia Property Trust and are organized as Delaware limited liability ~~companies, and operate,~~companies. The TRS Entities, among other things, ~~office properties~~provide tenant services that ~~we do not intend to hold long term and~~Columbia Property Trust, as a ~~full-service hotel.~~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% 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

~~Page 44~~

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.

Page 45

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

There have been no material changes in our critical accounting policies from those disclosed in our Annual Report on Form 10-K for the year ended December 31, ~~2015.~~2016.

Related-Party Transactions

During the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015,~~2016, we did not have any related party transactions, except as described in Note 4, Unconsolidated Joint Venture, of the accompanying 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, of our accompanying consolidated financial statements for further explanation. Examples of such commitments and contingencies include:

~~structural repairs at one of our properties with estimated costs, net of recoveries, ranging from $15.0 million to $20.0 million;~~

guaranty of debt of an unconsolidated joint venture of ~~$23.3~~$12.6 million;

obligations under operating leases;

obligations under capital leases;

commitments under existing lease ~~agreements, including a commitment for $70.1 million in leasehold improvements related to a recently executed lease, which is expected to be paid during 2016 and 2017;~~agreements; and

litigation.

Subsequent Event

We have evaluated subsequent events in connection with the preparation of ~~its~~the consolidated financial statements and notes thereto included in this report on Form 10-Q and noted the following ~~item~~ in addition to those disclosed elsewhere in this report:

~~Property Disposition~~

~~During October 2016, we closed on the sale of the 9127 South Jamaica Street building in Denver, Colorado,~~Allianz Joint Ventures as described in Note 3, Real Estate Transactions,of the accompanying consolidated financial ~~statements.~~statements; and

Amendment of $150 Million Term Loan, as described in Note 5, Line of Credit and Notes Payable,of the accompanying consolidated financial statements.


ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As a result of certain of our 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 currently have a substantial amount of debt outstanding. We manage our ratio of fixed- to floating-rate debt with the objective of achieving a mix that we believe is appropriate in light of 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 risk of increasing interest rates in future periods.

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 currently 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.

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~~Table of Contents~~

Our financial instruments consist of both fixed-rate and variable-rate debt. Our variable-rate borrowings consist of the Revolving Credit Facility, the $300 Million Term Loan, and the $150 Million Term Loan. However, only the Revolving Credit Facility and the $300 Million Term Loan bear interest at effectively variable rates, as the variable rate on the $150 Million Term Loan has been effectively fixed through the interest rate swap agreement described in the "Liquidity and Capital Resources" section of Item 2, Management's Discussion and Analysis of Financial Condition and Results of Operations.

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As of ~~September~~June 30, ~~2016~~2017, we had ~~$99.0 million of~~no outstanding borrowings under the Revolving Credit ~~Facility, which was fully repaid on October 3, 2016, using a portion of the proceeds from the September 30, 2016 sale of the 80 Park Plaza building;~~Facility; $150.0 million outstanding on the $150 Million Term Loan; $300.0 million outstanding on the $300 Million Term Loan; $349.6 million in 2025 Bonds Payable outstanding; ~~$348.7~~$348.8 million in 2026 Bonds Payable outstanding; and ~~$276.0~~$198.8 million outstanding on fixed-rate, term mortgage loans. The weighted-average interest rate of all of our debt instruments was ~~3.42%~~3.57% as of ~~September~~June 30, ~~2016.~~2017.

Approximately ~~$1,124.3~~$1,047.2 million of our total debt outstanding as of ~~September~~June 30, ~~2016,~~2017, is subject to fixed rates, either directly or when coupled with an interest rate swap agreement. As of ~~September~~June 30, ~~2016,~~2017, these balances incurred interest expense at an average interest rate of ~~3.94%~~3.93% and have expirations ranging from 2017 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 1.0% change in interest rates would have a $3.0 million annual impact on our interest payments. The amounts outstanding on our Revolving Credit Facility in the future will largely depend upon future acquisition and disposition activity.

Our unconsolidated Market Square Joint Venture holds a $325 million mortgage note, which bears interest at 5.07%. Adjusting for 51% of the debt at the Market Square Joint Venture, in which we own ~~a 51% interest,~~through an unconsolidated joint venture, our weighted-average interest rate is ~~3.58%~~3.74%.

We do not believe there is any exposure to increases in interest rates related to the capital lease obligations of $120.0 million at ~~September~~June 30, ~~2016,~~2017, as the obligations are at fixed interest rates.


ITEM 4.	CONTROLS AND PROCEDURES

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 our disclosure controls and procedures pursuant to Rule 13a-15(e) under the Securities Exchange Act of 1934 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 our 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 Securities Exchange Act of 1934 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.

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting during the quarter ended ~~September~~June 30, ~~2016~~2017, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II.	OTHER INFORMATION


ITEM 1.	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, liquidity, or financial condition, nor are we aware of any such legal proceedings contemplated by governmental authorities.


ITEM 1A.	RISK FACTORS

There have been no material changes from the risk factors disclosed in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, ~~2015.~~2016.


ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS


(a)	During the quarter ended ~~September~~June 30, ~~2016,~~2017, we did not sell any equity securities that were not registered under the Securities Act of 1933.


(b)	Not applicable.


(c)	On September 4, 2015, our board of directors approved the Stock Repurchase Program, which provides for Columbia Property Trust to buy up to $200 million of our common stock over a two-year period, ending on September 4, 2017.

During the quarter ended ~~September~~June 30, ~~2016,~~2017, we ~~did not purchase or retire any~~repurchased and retired the following shares in accordance with the Stock Repurchase ~~Program.~~Program, as described in Note 8, Equity.

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⁽¹⁾
July 2016 —
$ —
—
$ 158,683,331
August 2016 —
$ —
—
$ 158,683,331
September 2016 —
$ —
—
$ 158,683,331



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⁽¹⁾
April 2017	—	$	—	—	$	130,943,000
May 2017	1,200,000	$	21.956	1,200,000	$	104,596,000
June 2017	51,670	$	21.735	51,670	$	103,473,000


⁽¹⁾	Amounts available for future purchase relate only to our Stock Repurchase Program and represent the remainder of the $200 million authorized by our board of directors for share repurchases.


ITEM 3.	DEFAULTS UPON SENIOR SECURITIES


(a)	There have been no defaults with respect to any of our indebtedness.


(b)	Not applicable.


ITEM 4.	MINE SAFETY DISCLOSURES

Not applicable.


ITEM 5.	OTHER INFORMATION


(a)	During the ~~third~~second quarter of ~~2016,~~2017, 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.

On July 25, 2017, we amended the terms of the $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 new interest rate of 3.07% per annum is effectively fixed by an existing interest rate swap agreement designated as a cash flow hedge.


(b)	There are no material changes to the procedures by which stockholders may recommend nominees to our board of directors since the filing of our most recent Schedule 14A.


ITEM 6.	EXHIBITS

The exhibits required to be filed with this report are set forth onin the Exhibit Index to this quarterly report attached hereto.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.



		COLUMBIA PROPERTY TRUST, INC. (Registrant)

Dated:	~~October~~July 27, ~~2016~~2017	By:	/s/ JAMES A. FLEMING
			James A. Fleming Executive Vice President and Chief Financial Officer

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EXHIBIT INDEX TO

~~THIRD~~SECOND QUARTER ~~2016~~2017 FORM 10-Q OF

COLUMBIA PROPERTY TRUST, INC.

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



Ex.	Description
3.1	Second Amended and Restated Articles of Incorporation as Amended by the First, Second, Third and Fourth Articles of Amendment and the Articles Supplementary (incorporated by reference to Exhibit 3.1 to the Company's Quarterly Report on Form 10-Q filed with the Commission on November 5, 2013).
3.2	Second Articles of Amendment (incorporated by reference to Exhibit 3.1 to the Company's ~~current~~Current Report on Form 8-K filed with the Commission on August 15, 2013).
3.3	Third Articles of Amendment (incorporated by reference to Exhibit 3.2 to the Company's ~~current~~Current Report on Form 8-K filed with the Commission on August 15, 2013).
3.4	Fourth Articles of Amendment (incorporated by reference to Exhibit 3.1 to the Company's ~~current~~Current Report on Form 8-K filed with the Commission on July 1, 2014).
3.5	Articles Supplementary (incorporated by reference to Exhibit 3.1 to the Company's ~~current~~Current Report on Form 8-K filed with the Commission on September 4, 2013).
3.6	Fifth Articles of Amendment (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed with the Commission on May 3, 2017).
3.7	Third Amended and Restated Bylaws, as amended (incorporated by reference to Exhibit 3.2 to the Company's Current Report on Form 8-K filed with the Commission on ~~September 4, 2013)~~February 13, 2017).
4.1	Statement regarding restrictions on transferability of shares of common stock (to appear on stock certificate or to be sent upon request and without charge to stockholders issued shares without certificates) (incorporated by reference to Exhibit 4.1 to the Company's Annual Report on Form 10-K filed with the Commission on March 1, 2013).
4.2	Indenture, dated March 12, 2015 (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed with the Commission on March 12, 2015).
4.3	~~Supplement~~Supplemental Indenture, dated March 12, 2015 (incorporated by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K filed with the Commission on March 12, 2015).
4.4	Form of 4.150% Senior Notes due 2025 (included in Exhibit 4.3).
4.5	Supplemental Indenture, dated August 12, 2016 (incorporated by reference to Exhibit 4.1 to the ~~Company’s~~Company's Current Report on Form 8-K filed with the Commission on August 12, 2016).
4.6	Form of 3.650% Senior Notes due 2026 (incorporated by reference to Exhibit 4.2 to the ~~Company’s~~Company's Current Report on Form 8-K filed with the Commission on August 12, 2016).
10.1	Columbia Property Trust, Inc. Amended and Restated 2013 Long-Term Incentive Plan (incorporated by reference to Appendix A to the Company's definitive Proxy Statement of Schedule 14A filed with the Commission on March 17, 2017).
12.1*	Calculation of Earnings to Fixed Charges
31.1*	Certification of the Principal Executive Officer of the Company, pursuant to Securities Exchange Act Rules 13a-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of the Principal Financial Officer of the Company, pursuant to Securities Exchange Act Rules 13a-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Certification of the Principal Executive Officer and Principal Financial Officer of the Company, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*	XBRL Instance Document.
101.SCH*	XBRL Taxonomy Extension Schema.
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase.
101.DEF*	XBRL Taxonomy Extension Definition Linkbase.
101.LAB*	XBRL Taxonomy Extension Label Linkbase.
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase.

*	Filed herewith.

Page 4950



	Equity
	Common Stock					Additional Paid-In Capital			Cumulative Distributions in Excess of Earnings			Cumulative Other Comprehensive Loss			Total Equity
	Shares		Amount			Additional Paid-In Capital			Cumulative Distributions in Excess of Earnings			Cumulative Other Comprehensive Loss			Total Equity
Balance, December 31, 2015	124,363		$	1,243		$	4,588,303		$	(1,972,916	)	$	(2,436	)	$	2,614,194
Repurchases of common stock	(1,105	)	(11		)	(24,989		)	—			—			(25,000		)
Common stock issued to employees and directors, and amortized (net of income tax witholdings)	213		2			2,337			—			—			2,339
Distributions to common stockholders ($0.90 per share)	—		—			—			(111,120		)	—			(111,120		)
Net income	—		—			—			56,881			—			56,881
Market value adjustment to interest rate swap	—		—			—			—			(5,629		)	(5,629		)
Balance, September 30, 2016	123,471		$	1,234		$	4,565,651		$	(2,027,155	)	$	(8,065	)	$	2,531,665



	315 Park Avenue South Building			1881 Campus Commons Building			116 Huntington Avenue Building			229 West 43rd Street Building
Location	New York, NY			Reston, VA			Boston, MA			New York, NY
Date Acquired	January 7, 2015			January 7, 2015			January 8, 2015			August 4, 2015
Purchase price:
Land	$	119,633		$	7,179		$	—		$	207,233
Building and improvements	232,598			49,273			108,383			265,952
Intangible lease assets	16,912			4,643			7,907			27,039
Intangible below market ground lease assets	—			—			30,244			—
Intangible lease origination costs	4,148			1,603			2,669			10,059
Intangible below market lease liability	(7,487		)	(97		)	(1,878		)	—
Total purchase price	$	365,804		$	62,601		$	147,325		$	510,283



	Three Months Ended September 30, 2015		Nine Months Ended September 30, 2015
Revenues	$	140,225	$	450,020
Net income	$	21,534	$	36,183
Net income per share - basic	$	0.17	$	0.29
Net income per share - diluted	$	0.17	$	0.29



	As of September 30, 2016
	Columbia Property Trust (Parent) (Guarantor)		Columbia Property Trust OP (the Issuer)		Non- Guarantors		Consolidating adjustments			Columbia Property Trust (Consolidated)
Assets:
Real estate assets, at cost:
Land	$	—	$	6,241	$	781,215	$	—		$	787,456
Buildings and improvements, net	—		28,707		2,342,566		—			2,371,273
Intangible lease assets, net	—		—		204,200		—			204,200
Construction in progress	—		448		28,440		—			28,888
Real estate assets held for sale, net	—		—		238,876		—			238,876
Total real estate assets	—		35,396		3,595,297		—			3,630,693
Investment in unconsolidated joint venture	—		125,605		—		—			125,605
Cash and cash equivalents	169,434		9,343		12,079		—			190,856
Investment in subsidiaries	2,045,043		1,880,585		—		(3,925,628		)	—
Tenant receivables, net of allowance	—		77		6,289		—			6,366
Straight-line rent receivable	—		1,557		68,629		—			70,186
Prepaid expenses and other assets	317,188		262,417		16,580		(571,300		)	24,885
Intangible lease origination costs, net	—		—		58,645		—			58,645
Deferred lease costs, net	—		1,955		58,428		—			60,383
Investment in development authority bonds	—		—		120,000		—			120,000
Other assets held for sale	—		—		32,306		—			32,306
Total assets	$	2,531,665	$	2,316,935	$	3,968,253	$	(4,496,928	)	$	4,319,925
Liabilities:
Line of credit and notes payable	$	—	$	546,505	$	705,844	$	(430,763	)	$	821,586
Bonds payable, net	—		692,763		—		—			692,763
Accounts payable, accrued expenses, and accrued capital expenditures	—		20,352		61,265		—			81,617
Due to affiliates	—		31		1,561		(1,592		)	—
Deferred income	—		249		20,162		—			20,411
Intangible lease liabilities, net	—		—		36,239		—			36,239
Obligations under capital leases	—		—		120,000		—			120,000
Liabilities held for sale	—		—		154,589		(138,945		)	15,644
Total liabilities	—		1,259,900		1,099,660		(571,300		)	1,788,260
Equity:
Total equity	2,531,665		1,057,035		2,868,593		(3,925,628		)	2,531,665
Total liabilities and equity	$	2,531,665	$	2,316,935	$	3,968,253	$	(4,496,928	)	$	4,319,925



	Three Months Ended September 30,							Nine Months Ended September 30,
	2016				2015			2016				2015
Total number of leases	11				16			32				53
Lease term (months)	82				101			341				107
Square feet of leasing - renewal	92,625			⁽¹⁾	18,560			253,099			⁽¹⁾	163,315
Square feet of leasing - new	34,388			⁽²⁾	120,446			530,653			⁽²⁾	371,053
Total square feet of leasing	127,013				139,006			783,752				534,368
Rent leasing spread - renewal⁽³⁾	26.3		%		8.5		%	25.8		%		47.0		%
Rent leasing spread - new⁽⁴⁾	—		%		7.6		%	18.9		%	⁽⁵⁾	69.4		%
Rent leasing spread - all leases⁽³⁾⁽⁴⁾	26.3		%		7.7		%	19.2		%		62.7		%
Tenant improvements, per square foot - renewal	$	50.85			$	11.19		$	38.66			$	24.36
Tenant improvements, per square foot - new	$	31.36			$	39.84		$	168.18		⁽⁵⁾	$	62.13
Tenant improvements, per square foot - all leases	$	44.59			$	38.37		$	161.51			$	53.43
Leasing commissions, per square foot - renewal	$	16.98			$	7.43		$	13.88			$	14.35
Leasing commissions, per square foot - new	$	24.07			$	23.51		$	43.70		⁽⁵⁾	$	29.05
Leasing commissions, per square foot - all leases	$	19.25			$	22.68		$	42.16			$	25.67



Recent Acquisitions
Property	Location	Rentable Square Footage	Acquisition Date	Purchase Price⁽¹⁾ (in thousands)
2015
229 West 43rd Street	New York, NY	481,000	August 4, 2015	$	516,000
116 Huntington Avenue	Boston, MA	271,000	January 8, 2015	$	152,000
315 Park Avenue South	New York, NY	327,000	January 7, 2015	$	372,000
1881 Campus Commons	Reston, VA	244,000	January 7, 2015	$	64,000