Table of Contents





UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________________________ 
FORM 10-Q
__________________________________ 
(Mark One)

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 30, 2017
OR
for the quarterly period ended September 30, 2019
oor
☐
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
for the transition period from ______ to ______
for the transition period from ______ to ______
Commission file number 001-36113
COLUMBIA PROPERTY TRUST, INC.
(Exact name of registrant as specified in its charter)

__________________________________
Maryland20-0068852
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification Number)
One Glenlake Parkway, Suite 1200
Atlanta, GA 30328315 Park Avenue South, New York, New York 10010
(Address of principal executive offices)
(Zip (Zip Code)
(404) 465-2200
(212) 687-0800
(Registrant's telephone number, including area code)

(Former name, former address, and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolsName of each exchange on which registered
Common StockCXPNYSE
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  ☒    No  ☐
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, or an emerging growth company. See the definitions of "large accelerated filer", "accelerated filer", "smaller reporting company", and "emerging growth company" in Rule 12b-2 of the Exchange Act (check one).
Large accelerated filer
x
☒		Accelerated filero☐
Non-accelerated filer
o☐ (Do not check if a smaller reporting company)
Smaller reporting companyo☐
Emerging Growth Companyo☐
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  ☐    No  ☒
Yes  o    No  x


Number of shares outstanding of the registrant's
only class of common stock, as of October 23, 2017: 119,803,60821, 2019: 116,898,657 shares




Table of Contents



FORM 10-Q
COLUMBIA PROPERTY TRUST, INC.
TABLE OF CONTENTS
 
Page No.
PART I. FINANCIAL INFORMATION
Page No.
Item 1.
Page 43
Page 54
Page 65
Page 76
Page 87
Page 9
Page 10
Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
Page 3941
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
Page 5155
Item 4.
Controls and Procedures
Page 5256
Item 1.
Legal Proceedings
57
Item 1.1A.
Legal ProceedingsRisk Factors
Page 5357
Item 1A.2.
Risk Factors
Page 53
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
Page 5358
Item 3.
Defaults Upon Senior Securities
Page 5358
Item 4.
Mine Safety Disclosures
Page 5358
Item 5.
Other Information
Page 5358
Item 6.
Exhibits
Page 5459





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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained in this Quarterly Reportquarterly 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 statementsconstitute "forward-looking statements” within the meaning of the Private Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend1934). Columbia Property Trust intends for all such forward-looking statements presented in this quarterly report on Form 10-Q ("Form 10-Q"), or that management may make orally or in writing from time to time, to be covered by the applicable safe harbor provisions for forward-looking statements contained in those acts.
Such statements in this current Form 10-Q include, in particular, statementsamong other things, information about possible or assumed future results of the business and our financial condition, liquidity, results of operations, 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.objectives. 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. As forward-looking statements, these statements are subject to certain risks and uncertainties, including known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. These risks, uncertainties, and other factors include, without limitation:
•risks affecting the real estate industry, and the office sector in particular, (such as the inability to enter into new leases, dependence on tenants' financial condition, and competition from other owners of real estate);
•risks relating to our ability to maintain and increase property occupancy rates and rental rates;
•adverse economic or real estate market developments in our target markets;
•risks relating to the use of debt to fund acquisitions;
•availability and terms of financing;
•ability to refinance indebtedness as it comes due;
•sensitivity of our operations and financing arrangements to fluctuations in interest rates;
•reductions in asset valuations and related impairment charges;
•risks relating to construction, development, and redevelopment activities;
•risks associated with joint ventures, including disagreements with, or misconduct by, joint venture partners;
•risks relating to repositioning our portfolio;
•risks relating to reduced demand for, or over supply of, office space in our markets;
•risks relating to lease terminations, lease defaults, or changes in the financial condition of our tenants, particularly by a significant tenant;
•risks relating to acquisition and disposition activities;
•risks associated with the ability to consummate the proposed transactions with Normandy Real Estate Management ("Normandy"), and the timing of the closing of the proposed transactions with Normandy;
•the ability to successfully integrate our operations and employees in connection with the proposed transaction with Normandy;
•the ability to realize anticipated benefits and synergies of the proposed transactions with Normandy;
•the amount of the costs, fees, expenses, and charges related to the proposed transactions with Normandy;
•risks associated with our ability to continue to qualify as a real estate investment trust ("REIT");
•risks associated with possible cybersecurity attacks against us or any of our tenants;
•potential liability for uninsured losses and environmental contamination;
•potential adverse impact of market interest rates on the market price for our securities; and
•risks associated with our dependence on key personnel whose continued service is not guaranteed.
For further discussion of these and additional risks and uncertainties that may cause actual results to differ from expectation, see Item 1A, Risk Factors, in our Form 10-K for the year ended December 31, 2018 and Part II, Item 1A – Risk Factors, in this Quarterly Report. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, we can give no assurances that our expectations will be achieved. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date this reportForm 10-Q 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,statement, 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, 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
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PART I.FINANCIAL INFORMATION
PART I.FINANCIAL INFORMATION

ITEM 1.CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
ITEM 1.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, 2016.2018. Columbia Property Trust's results of operations for the three and nine months endedSeptember 30, 20172019 are not necessarily indicative of the operating results expected for the full year.



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COLUMBIA PROPERTY TRUST, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per-share amounts)
(Unaudited)(Unaudited)
September 30,
2017		 December 31,
2016		September 30,
2019		December 31,
2018
Assets:   Assets:
Real estate assets, at cost:   Real estate assets, at cost:
Land$609,110
 $751,351
Land$803,986  $817,975  
Buildings and improvements, less accumulated depreciation of $377,794 and $435,457, as of September 30, 2017 and December 31, 2016, respectively1,704,630
 2,121,150
Intangible lease assets, less accumulated amortization of $89,950 and $112,777, as of
September 30, 2017 and December 31, 2016, respectively
164,699
 193,311
Buildings and improvements, less accumulated depreciation of $344,037 and $403,355, as of
September 30, 2019 and December 31, 2018, respectively
Buildings and improvements, less accumulated depreciation of $344,037 and $403,355, as of
September 30, 2019 and December 31, 2018, respectively
1,593,735  1,910,041  
Intangible lease assets, less accumulated amortization of $56,343 and $84,881, as of
September 30, 2019 and December 31, 2018, respectively
Intangible lease assets, less accumulated amortization of $56,343 and $84,881, as of
September 30, 2019 and December 31, 2018, respectively
50,726  98,540  
Construction in progress49,255
 36,188
Construction in progress33,663  33,800  
Real estate assets held for sale, less accumulated depreciation and amortization of $180,791, as of December 31, 2016—
 412,506
Total real estate assets2,527,694
 3,514,506
Total real estate assets2,482,110  2,860,356  
Investment in unconsolidated joint ventures698,105
 127,346
Operating lease assetsOperating lease assets29,710  —  
Investments in unconsolidated joint venturesInvestments in unconsolidated joint ventures1,058,570  1,071,353  
Cash and cash equivalents382,730
 216,085
Cash and cash equivalents147,485  17,118  
Tenant receivables, net of allowance for doubtful accounts of $7 and $31, as of September 30, 2017 and December 31, 2016, respectively
2,814
 7,163
Tenant receivables, net of $4 allowance for doubtful accounts as of December 31, 2018Tenant receivables, net of $4 allowance for doubtful accounts as of December 31, 20182,474  3,258  
Straight-line rent receivable80,128
 64,811
Straight-line rent receivable87,076  87,159  
Prepaid expenses and other assets75,802
 24,275
Prepaid expenses and other assets33,404  23,218  
Intangible lease origination costs, less accumulated amortization of $55,532 and $74,578, as of September 30, 2017 and December 31, 2016, respectively28,067
 54,279
Deferred lease costs, less accumulated amortization of $24,716 and $22,753, as of
September 30, 2017 and December 31, 2016, respectively		127,940
 125,799
Investment in development authority bonds120,000
 120,000
Other assets held for sale, less accumulated amortization of $34,152, as of December 31, 2016—
 45,529
Intangible lease origination costs, less accumulated amortization of $32,630 and $65,348, as of
September 30, 2019 and December 31, 2018, respectively
Intangible lease origination costs, less accumulated amortization of $32,630 and $65,348, as of
September 30, 2019 and December 31, 2018, respectively
23,517  34,092  
Deferred lease costs, less accumulated amortization of $25,065 and $27,735, as of
September 30, 2019 and December 31, 2018, respectively
Deferred lease costs, less accumulated amortization of $25,065 and $27,735, as of
September 30, 2019 and December 31, 2018, respectively
61,455  77,439  
Total assets$4,043,280
 $4,299,793
Total assets$3,925,801  $4,173,993  
Liabilities:   Liabilities:
Line of credit and notes payable, net of unamortized deferred financing costs of $2,611 and $3,136, as of September 30, 2017 and December 31, 2016, respectively$520,367
 $721,466
Bonds payable, net of discounts of $1,529 and $1,664 and unamortized deferred financing costs of $4,909 and $5,364, as of September 30, 2017 and December 31, 2016, respectively
693,562
 692,972
Line of credit and notes payable, net of unamortized deferred financing costs of $2,237 and $2,692, as of September 30, 2019 and December 31, 2018, respectivelyLine of credit and notes payable, net of unamortized deferred financing costs of $2,237 and $2,692, as of September 30, 2019 and December 31, 2018, respectively$447,763  $629,308  
Bonds payable, net of discounts of $1,169 and $1,304 and unamortized deferred financing costs of $3,704 and $4,158, as of September 30, 2019 and December 31, 2018, respectively
Bonds payable, net of discounts of $1,169 and $1,304 and unamortized deferred financing costs of $3,704 and $4,158, as of September 30, 2019 and December 31, 2018, respectively
695,127  694,538  
Operating lease liabilitiesOperating lease liabilities2,335  —  
Accounts payable, accrued expenses, and accrued capital expenditures129,802
 131,028
Accounts payable, accrued expenses, and accrued capital expenditures53,281  49,117  
Dividends payable—
 36,727
Dividends payable—  23,340  
Deferred income15,756
 19,694
Deferred income14,772  15,593  
Intangible lease liabilities, less accumulated amortization of $19,437 and $44,564, as of
September 30, 2017 and December 31, 2016, respectively		9,891
 33,375
Obligations under capital lease120,000
 120,000
Liabilities held for sale, less accumulated amortization of $1,239, as of December 31, 2016—
 41,763
Intangible lease liabilities, less accumulated amortization of $13,913 and $21,766, as of
September 30, 2019 and December 31, 2018, respectively
Intangible lease liabilities, less accumulated amortization of $13,913 and $21,766, as of
September 30, 2019 and December 31, 2018, respectively
14,989  21,081  
Total liabilities1,489,378
 1,797,025
Total liabilities1,228,267  1,432,977  
Commitments and Contingencies (Note 7)—
 —
Commitments and Contingencies (Note 7)—  —  
Equity:   Equity:
Common stock, $0.01 par value, 225,000,000 shares authorized, 119,803,608 and 122,184,193 shares issued and outstanding, as of September 30, 2017 and December 31, 2016, respectively1,198
 1,221
Common stock, $0.01 par value, 225,000,000 shares authorized, 116,908,658 and 116,698,033 shares issued and outstanding, as of September 30, 2019 and December 31, 2018, respectivelyCommon stock, $0.01 par value, 225,000,000 shares authorized, 116,908,658 and 116,698,033 shares issued and outstanding, as of September 30, 2019 and December 31, 2018, respectively1,169  1,167  
Additional paid-in capital4,485,368
 4,538,912
Additional paid-in capital4,424,372  4,421,587  
Cumulative distributions in excess of earnings(1,931,927) (2,036,482)Cumulative distributions in excess of earnings(1,723,248) (1,684,082) 
Cumulative other comprehensive loss(737) (883)
Cumulative other comprehensive income (loss)Cumulative other comprehensive income (loss)(4,759) 2,344  
Total equity2,553,902
 2,502,768
Total equity2,697,534  2,741,016  
Total liabilities and equity$4,043,280
 $4,299,793
Total liabilities and equity$3,925,801  $4,173,993  
See accompanying notes.

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COLUMBIA PROPERTY TRUST, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per-share amounts)
(Unaudited)(Unaudited)
 Three Months Ended
September 30,		Nine Months Ended
September 30,
 2019201820192018
Revenues:
Lease revenues$68,963  $69,737  $210,426  $211,506  
Asset and property management fee income1,914  1,825  5,681  5,402  
Other property income1,072  1,778  4,005  5,512  
71,949  73,340  220,112  222,420  
Expenses:
Property operating costs23,147  21,000  69,970  66,512  
Asset and property management fee expenses102  206  521  619  
Depreciation19,773  19,878  59,512  61,394  
Amortization7,485  7,920  22,052  24,559  
Impairment loss on real estate assets23,364  —  23,364  30,812  
General and administrative – corporate7,103  8,303  23,707  24,379  
General and administrative – unconsolidated joint ventures839  746  2,486  2,213  
Pre-acquisition costs (Note 15)2,437  —  2,437  —  
84,250  58,053  204,049  210,488  
Other Income (Expense):
Interest expense(10,289) (13,051) (33,281) (43,260) 
Gain on extinguishment of debt—  —  —  23,713  
Interest and other income—  1,803  1  5,420  
Gain on sale of unconsolidated joint venture interests—  —  —  762  
Income tax expense(2) (3) (18) (16) 
Income from unconsolidated joint ventures2,194  2,393  6,179  5,937  
Gain on sale of real estate assets112  —  42,030  —  
(7,985) (8,858) 14,911  (7,444) 
Net Income (Loss)$(20,286) $6,429  $30,974  $4,488  
Per-Share Information – Basic:
Net income (loss)$(0.17) $0.05  $0.26  $0.04  
Weighted-average common shares outstanding – basic116,522  117,609  116,498  118,237  
Per-Share Information – Diluted:
Net income (loss)$(0.17) $0.05  $0.26  $0.04  
Weighted-average common shares outstanding – diluted116,821  118,207  116,762  118,749  
 (Unaudited) (Unaudited)
 Three Months Ended
September 30,		 Nine Months Ended
September 30,
 2017 2016 2017 2016
Revenues:       
Rental income$55,015
 $87,561
 $193,309
 $280,714
Tenant reimbursements3,053
 17,090
 18,609
 55,551
Hotel income—
 6,270
 1,339
 17,484
Asset and property management fee income1,154
 511
 2,126
 1,655
Other property income1,140
 1,834
 1,992
 12,371
 60,362
 113,266
 217,375
 367,775
Expenses:       
Property operating costs18,567
 39,101
 64,503
 120,679
Hotel operating costs—
 4,946
 2,085
 14,315
Asset and property management fee expenses188
 387
 717
 1,058
Depreciation18,501
 26,778
 60,529
 84,517
Amortization6,870
 11,895
 24,518
 42,902
General and administrative - corporate7,034
 7,467
 25,003
 25,718
General and administrative - unconsolidated joint ventures713
 —
 713
 —
 51,873
 90,574
 178,068
 289,189
Real estate operating income8,489
 22,692
 39,307
 78,586
Other income (expense):       
Interest expense(14,731) (17,138) (44,308) (52,415)
Interest and other income2,841
 1,839
 7,668
 5,452
Loss on early extinguishment of debt(280) (18,905) (325) (18,997)
 (12,170) (34,204) (36,965) (65,960)
Income (loss) before income taxes, unconsolidated joint ventures, and sales of real estate:(3,681) (11,512) 2,342
 12,626
Income tax benefit (expense)(3) (65) 378
 (387)
Income (loss) from unconsolidated joint ventures2,853
 (1,937) (849) (5,441)
Income (loss) before sales of real estate:(831)
(13,514)
1,871

6,798
Gain on sales of real estate assets102,365
 50,412
 175,518
 50,083
Net income$101,534

$36,898

$177,389

$56,881
Per-share information – basic:
 
    
Net income$0.84
 $0.30
 $1.46
 $0.46
Weighted-average common shares outstanding – basic120,293
 123,215
 121,270
 123,271
Per-share information – diluted:       
Net income$0.84
 $0.30
 $1.46
 $0.46
Weighted-average common shares outstanding – diluted120,529
 123,350
 121,458
 123,348
Dividends per share$0.20
 $0.30
 $0.60
 $0.90

See accompanying notes.

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

 (Unaudited) (Unaudited)
 Three Months Ended
September 30,		 Nine Months Ended
September 30,
 2017 2016 2017 2016
Net income$101,534
 $36,898
 $177,389
 $56,881
Market value adjustments to interest rate swap148
 1,250
 146
 (5,629)
Comprehensive income$101,682
 $38,148
 $177,535
 $51,252

(Unaudited)(Unaudited)
Three Months Ended
September 30,		Nine Months Ended
September 30,
 2019201820192018
Net income (loss)$(20,286) $6,429  $30,974  $4,488  
Market value adjustments to interest rate swap(3,068) 722  (7,103) 4,174  
Comprehensive income (loss)$(23,354) $7,151  $23,871  $8,662  
See accompanying notes.





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COLUMBIA PROPERTY TRUST, INC.
CONSOLIDATED STATEMENTS OF EQUITY
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2017 AND 20162019 (UNAUDITED)
(in thousands, except per-share amounts)


For the Three Months Ended September 30, 2019
 Common StockAdditional
Paid-In
Capital		Cumulative
Distributions
in Excess of
Earnings		Cumulative
Other
Comprehensive
Loss		Total
Equity
 SharesAmount
Balance, June 30, 2019116,909  $1,169  $4,422,833  $(1,679,580) $(1,691) $2,742,731  
Common stock issued to employees and directors, and amortized (net of income tax withholdings)—  —  1,539  —  —  1,539  
Distributions to common stockholders ($0.20 per share)—  —  —  (23,382) —  (23,382) 
Net loss—  —  —  (20,286) —  (20,286) 
Market value adjustment to interest rate swap—  —  —  —  (3,068) (3,068) 
Balance, September 30, 2019116,909  $1,169  $4,424,372  $(1,723,248) $(4,759) $2,697,534  
 Common Stock 
Additional
Paid-In
Capital
 
Cumulative
Distributions
in Excess of
Earnings
 
Cumulative
Other
Comprehensive
Income (Loss)
 
Total
Equity
 Shares Amount    
Balance, December 31, 2016122,184
 $1,221
 $4,538,912
 $(2,036,482) $(883) $2,502,768
Repurchases of common stock(2,682) (26) (57,602) —
 —
 (57,628)
Common stock issued to employees and directors, and amortized (net of income tax withholdings)302
 3
 4,058
 —
 —
 4,061
Distributions to common stockholders ($0.60 per share)—
 —
 —
 (72,834) —
 (72,834)
Net income—
 —
 —
 177,389
 —
 177,389
Market value adjustment to interest rate swap—
 —
 —
 —
 146
 146
Balance, September 30, 2017119,804
 $1,198
 $4,485,368
 $(1,931,927) $(737) $2,553,902

 Common Stock 
Additional
Paid-In
Capital
 
Cumulative
Distributions
in Excess of
Earnings
 
Cumulative
Other
Comprehensive
Loss
 
Total
 Equity
 Shares Amount    
Balance, December 31, 2015124,363
 $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)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, 2016123,471
 $1,234
 $4,565,651
 $(2,027,155) $(8,065) $2,531,665
For the Nine Months Ended September 30, 2019
 Common StockAdditional
Paid-In
Capital		Cumulative
Distributions
in Excess of
Earnings		Cumulative
Other
Comprehensive
Income (Loss)		Total
Equity
 SharesAmount
Balance, December 31, 2018116,698  $1,167  $4,421,587  $(1,684,082) $2,344  $2,741,016  
Common stock issued to employees and directors, and amortized (net of income tax withholdings)211  2  2,785  —  —  2,787  
Distributions to common stockholders ($0.60 per share)—  —  —  (70,140) —  (70,140) 
Net income—  —  —  30,974  —  30,974  
Market value adjustment to interest rate swap—  —  —  —  (7,103) (7,103) 
Balance, September 30, 2019116,909  $1,169  $4,424,372  $(1,723,248) $(4,759) $2,697,534  
See accompanying notes.


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7
Table of Contents



COLUMBIA PROPERTY TRUST, INC.
CONSOLIDATED STATEMENTS OF EQUITY (CONTINUED)
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2018 (UNAUDITED)
(in thousands, except per-share amounts)

For the Three Months Ended September 30, 2018
 Common StockAdditional
Paid-In
Capital		Cumulative
Distributions
in Excess of
Earnings		Cumulative
Other
Comprehensive
Income		Total
Equity
 SharesAmount
Balance, June 30, 2018117,974  $1,180  $4,447,054  $(1,648,577) $4,355  $2,804,012  
Common stock issued to employees and directors, and amortized (net of income tax withholdings)10  —  1,634  —  —  1,634  
Distributions to common stockholders ($0.20 per share)—  —  —  (23,597) —  (23,597) 
Net income—  —  —  6,429  —  6,429  
Market value adjustment to interest rate swap—  —  —  —  722  722  
Balance, September 30, 2018117,984  $1,180  $4,448,688  $(1,665,745) $5,077  $2,789,200  

For the Nine Months Ended September 30, 2018
 Common StockAdditional
Paid-In
Capital		Cumulative
Distributions
in Excess of
Earnings		Cumulative
Other
Comprehensive
Income		Total
Equity
 SharesAmount
Balance, December 31, 2017119,789  $1,198  $4,487,071  $(1,957,236) $903  $2,531,936  
Cumulative-effect adjustment for the adoption of
ASU 2017-05		—  —  —  357,755  —  357,755  
Cumulative-effect adjustment for the adoption of
ASU 2014-09		—  —  —  343  —  343  
Repurchases of common stock(1,954) (19) (41,770) —  —  (41,789) 
Common stock issued to employees and directors, and amortized (net of income tax withholdings)149  1  3,387  —  —  3,388  
Distributions to common stockholders ($0.60 per share)—  —  —  (71,095) —  (71,095) 
Net income—  —  —  4,488  —  4,488  
Market value adjustment to interest rate swap—  —  —  —  4,174  4,174  
Balance, September 30, 2018117,984  $1,180  $4,448,688  $(1,665,745) $5,077  $2,789,200  
See accompanying notes.
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Table of Contents

COLUMBIA PROPERTY TRUST, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
(Unaudited)Nine Months Ended
September 30,
Nine Months Ended
September 30,		 20192018
2017 2016
Cash Flows from Operating Activities:   
Cash Flows From Operating Activities:Cash Flows From Operating Activities:
Net income$177,389
 $56,881
Net income$30,974  $4,488  
Adjustments to reconcile net income to net cash provided by operating activities:   
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Straight-line rental income(20,964) (15,470)Straight-line rental income(10,387) (22,262) 
Noncash operating lease expenseNoncash operating lease expense630  —  
Depreciation60,529
 84,517
Depreciation59,512  61,394  
Amortization24,115
 39,271
Amortization18,692  22,340  
Stock-based compensation expenseStock-based compensation expense5,177  5,352  
Impairment loss on real estate assetsImpairment loss on real estate assets23,364  30,812  
Noncash interest expense2,239
 2,765
Noncash interest expense1,922  2,427  
Loss on early extinguishment of debt325
 18,997
Loss from unconsolidated joint ventures849
 5,441
Gain on sales of real estate assets(175,518) (50,083)
Stock-based compensation expense5,509
 3,512
Gain on extinguishment of debtGain on extinguishment of debt—  (23,713) 
Gain on sale of unconsolidated joint venture interestsGain on sale of unconsolidated joint venture interests—  (762) 
Income from unconsolidated joint venturesIncome from unconsolidated joint ventures(6,179) (5,937) 
Distributions of earnings from unconsolidated joint venturesDistributions of earnings from unconsolidated joint ventures20,601  21,464  
Gain on sale of real estate assetsGain on sale of real estate assets(42,030) —  
Changes in assets and liabilities, net of acquisitions and dispositions:   Changes in assets and liabilities, net of acquisitions and dispositions:
Decrease in tenant receivables, net3,957
 4,646
Decrease (increase) in tenant receivables, netDecrease (increase) in tenant receivables, net856  (2,061) 
Decrease in prepaid expenses and other assets1,340
 5,776
Decrease in prepaid expenses and other assets1,483  6,533  
Decrease in accounts payable and accrued expenses(25,488) (3,799)
Increase (decrease) in accounts payable and accrued expensesIncrease (decrease) in accounts payable and accrued expenses270  (36,281) 
Decrease in deferred income(7,167) (2,750)Decrease in deferred income(821) (2,757) 
Net cash provided by operating activities
47,115
 149,704
Cash Flows from Investing Activities:   
Net proceeds from the sales of real estate737,631
 482,089
Prepaid earnest money(52,000) —
Net cash provided by operating activitiesNet cash provided by operating activities104,064  61,037  
Cash Flows From Investing Activities:Cash Flows From Investing Activities:
Net proceeds from the sale of real estateNet proceeds from the sale of real estate375,004  284,608  
Net proceeds from sale of investments in unconsolidated joint venturesNet proceeds from sale of investments in unconsolidated joint ventures—  235,083  
Prepaid transaction costs and earnest moneyPrepaid transaction costs and earnest money(14,815) (7,300) 
Capital improvement and development costs(59,022) (34,447)Capital improvement and development costs(49,324) (56,379) 
Deferred lease costs paid(14,437) (19,713)Deferred lease costs paid(5,042) (12,687) 
Investments in unconsolidated joint ventures(123,149) (12,351)Investments in unconsolidated joint ventures(12,741) (4,432) 
Distributions from unconsolidated joint ventures1,411
 —
Distributions from unconsolidated joint ventures11,264  10,549  
Net cash provided by investing activities490,434
 415,578
Net cash provided by investing activities304,346  449,442  
Cash Flows from Financing Activities:   
Cash Flows From Financing Activities:Cash Flows From Financing Activities:
Financing costs paid(628) (3,111)Financing costs paid(162) (154) 
Prepayments to settle debt—
 (17,921)
Proceeds from lines of credit and notes payable—
 435,000
Proceeds from lines of credit and notes payable150,000  186,000  
Repayments of lines of credit and notes payable(201,625) (745,070)Repayments of lines of credit and notes payable(332,000) (551,476) 
Proceeds from issuance of bonds payable—
 348,691
Repayment of bonds payable—
 (250,000)
Distributions paid to stockholders(109,561) (148,474)Distributions paid to stockholders(93,480) (95,056) 
Redemptions of common stock(59,090) (26,186)Redemptions of common stock(2,401) (43,764) 
Net cash used in financing activities(370,904) (407,071)Net cash used in financing activities(278,043) (504,450) 
Net increase in cash and cash equivalents166,645
 158,211
Net increase in cash and cash equivalents130,367  6,029  
Cash and cash equivalents, beginning of period216,085
 32,645
Cash and cash equivalents, beginning of period17,118  9,567  
Cash and cash equivalents, end of period$382,730
 $190,856
Cash and cash equivalents, end of period$147,485  $15,596  
See accompanying notes.

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Table of Contents



COLUMBIA PROPERTY TRUST, INC.
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 20172019
(unaudited)

1.Organization
1.Organization
Columbia Property Trust, Inc. ("Columbia Property Trust") (NYSE: CXP) is a Maryland corporation that operates as a real estate investment trust ("REIT") for federal income tax purposes, and owns and operates commercial real estate properties. Columbia Property Trust was incorporated in 2003, commenced operations in 2004, and conducts business primarily through Columbia Property Trust Operating Partnership, L.P. ("Columbia Property Trust OP"), a Delaware limited partnership.partnership in which Columbia Property Trust is the general partner and sole owner ofowner. Columbia Property Trust OP and possesses full legal control and authority over its operations. Columbia Property Trust OP acquires, develops, redevelops, owns, leases, and operates real properties directly, through wholly owned subsidiaries, or through unconsolidated joint ventures. Unless otherwise noted herein, 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.
Columbia Property Trust typically invests in high-quality, income-generating office properties. As of September 30, 2017,2019, Columbia Property Trust owned 16 operating properties and 2 properties under development or redevelopment, of which 12 were wholly owned and four6 were owned through unconsolidated joint ventures. These properties areventures, located primarily in New York, San Francisco, and Washington, D.C., and Atlanta, contain a total As of 8.2September 30, 2019, the operating properties contained 7.1 million rentable square feet and were approximately 95.1% leased as96.9% leased.

2. Summary of September 30, 2017. In October 2017, Columbia Property Trust acquired two wholly owned properties in New York and a 55.0% interest in an additional property in Washington, D.C. See Note 3, Real Estate Transactions, for additional information.Significant Accounting Policies
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 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. For additional information on ourColumbia Property Trust's unconsolidated joint ventures, which are accounted for using the equity method of accounting, see Note 4, Unconsolidated Joint Ventures. 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 wasis 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, 20162018 (the "2016"2018 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 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.

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10


Real Estate Assets
Columbia Property Trust is required to make subjective assessments as to the useful lives of its depreciable assets. To determine the appropriate useful life of an asset, Columbia Property Trust considers the period of future benefit of the asset. These assessments have a direct impact on net income. The estimated useful lives of its assets by class are as follows:
Buildings40-4540 years
Building and site improvements5-25 years
Tenant improvementsShorter of economic life or lease term
Intangible lease assetsLease term
As further described in Note 5, Line of Credit and Notes Payable, Columbia Property Trust capitalizes interest incurred on outstanding debt balances as well as joint venture investments, as appropriate, during development or redevelopment of real estate held directly or in unconsolidated joint ventures. During the three months ended September 30, 2019 and 2018, $0.9 million and $1.0 million of interest was capitalized to construction in progress, respectively; and during both the nine months ended September 30, 2019 and 2018, $2.9 million of interest was capitalized to construction in progress. During the three and nine months ended September 30, 2019, $0.3 million and $0.9 million, respectively, were capitalized to investments in unconsolidated joint ventures. NaN interest was capitalized to investments in unconsolidated joint ventures during the nine months ended September 30, 2018.
Assets Held for Sale
Columbia Property Trust classifies properties as held for sale according to Accounting Standard Codification 360, Accounting for the Impairment or Disposal of Long-Lived Assets ("ASC 360"). According to ASC 360, properties having separately identifiable operations and cash flows are considered held for sale when all of 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.
None of Columbia Property Trust's properties met the criteria to be classified as held for sale in the accompanying balance sheets as of September 30, 2019 or December 31, 2018.
Evaluating the Recoverability of Real Estate Assets
Columbia Property Trust continually monitors events and changes in circumstances that could indicate that the net carrying amounts of its real estate and related intangible assets and liabilities, of both operating properties and properties under construction,development or redevelopment, may not be recoverable. When indicators of potential impairment are present that suggest that the net carrying amounts of real estate assets and related intangible assets and liabilities may not be recoverable, Columbia Property Trust assesses the recoverability of these net 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 net assets and their eventual disposition. In the event that such expected undiscounted future cash flows do not exceed the carrying values, Columbia Property Trust adjusts the carrying valuevalues of the real estate assets and related intangible assets and liabilities to the estimated fair values, pursuant to the property, plant, and equipment accounting standard for the impairment or disposal of long-lived assets, and recognizes an impairment loss. At such time that a property is required to be classified as held for sale, its net carrying amount is adjusted to the lower of its depreciated book value or its estimated fair value, less costs to sell, and depreciation is no longer recognized.
Estimated fair values are calculated based on the following hierarchy of information, depending upon availability:information: (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 an amount that exceeds that which could be realized in a current disposition transaction. Based on the assessment as described above, Columbia Property Trust has determined that the carrying values of all its real estate assets and related intangible assets are recoverable as of September 30, 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. Due to the inherent subjectivity of the assumptions used to project future cash flows, estimated fair values may differ from the values that would be realized in market transactions.
Assets Held for Sale
Certain of Columbia Property Trust's assets may be carried at an amount that exceeds that which could be realized in a current disposition transaction. Columbia Property Trust classifies propertieshas determined that the carrying values of its real estate assets and related intangible assets are recoverable as heldof September 30, 2019.
11

In the third quarter of 2019, Columbia Property Trust recognized an impairment loss of $23.4 million as a result of changing its holding period expectations for sale according to Accounting Standard Codification 360, Accounting for the Impairment or Disposal of Long-Lived Assets ("ASC 360"). According to ASC 360, properties, having separately identifiable operations and cash flows, are considered held for sale when the following criteria are met:
Management, having the authority to approve the action, commits toLindbergh Center in Atlanta, Georgia. Columbia Property Trust entered a plancontract to sell Lindbergh Center in the property.
The property is available for immediatethird quarter of 2019, and closed the sale in its present condition subject onlyon September 26, 2019. As a result, Columbia Property Trust reduced the carrying value of Lindbergh Center 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 orreflect its estimated fair value, less costsbased on the estimated net sale proceeds of $181.0 million (Level 1), by recording an impairment loss of $23.4 million in the third quarter of 2019.
In the second quarter of 2018, Columbia Property Trust recognized an impairment loss of $30.8 million in connection with changing the holding period expectations for 222 East 41st Street in New York. Columbia Property Trust widely marketed this property for sale during the second quarter and, as a result, entered into an agreement to sell this property on May 25, 2018 and depreciation is no longer recognized; and assets and liabilities are required to be classified as held forclosed on the sale on May 29, 2018. Upon entering into the accompanying consolidated balance sheet. As of September 30, 2017, none ofsale agreement, Columbia Property Trust's properties metTrust reduced 222 East 41st Street's carrying value to reflect its fair value, estimated based on the criteria to be classified as held for salenet contract price of $284.6 million (Level 1), by recording an impairment loss of $30.8 million in the accompanying balance sheet. Assecond quarter of December 31, 2016, Key Center Tower, Key Center Marriott, 5 Houston Center, Energy Center I, and 515 Post Oak were subject to binding sale contracts and met the other aforementioned criteria; thus, these properties are classified as held for sale in the accompanying

Page 11

consolidated balance sheet as of that date. The sale of 5 Houston Center, Energy Center I, and 515 Post Oak closed on January 6, 2017, and the sale of Key Center Tower and Key Center Marriott closed on January 31, 2017 (see Note 3, Real Estate Transactions).
The major classes of assets and liabilities classified as held for sale as of December 31, 2016, are provided below (in thousands):
 December 31, 2016
Real estate assets held for sale: 
Real estate assets, at cost: 
Land$30,243
Buildings and improvements, less accumulated depreciation of $152,246366,126
Intangible lease assets, less accumulated amortization of $28,54513,365
Construction in progress2,772
Total real estate assets held for sale, net$412,506
Other assets held for sale: 
Tenant receivables, net of allowance for doubtful accounts$1,722
Straight-line rent receivable20,221
Prepaid expenses and other assets3,184
Intangible lease origination costs, less accumulated amortization of $22,9491,815
Deferred lease costs, less accumulated amortization of $11,20318,587
Total other assets held for sale, net$45,529
Liabilities held for sale: 
Accounts payable, accrued expenses, and accrued capital expenditures$34,812
Deferred income4,214
Intangible lease liabilities, less accumulated amortization of $1,2392,737
Total liabilities held for sale, net$41,763
2018.
Intangible Assets and Liabilities Arising fromFrom In-Place Leases 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"Fair Value MeasurementsMeasurements" section above for additional detail). As of September 30, 20172019 and December 31, 2016,2018, Columbia Property Trust had the following intangible in-place lease assets and liabilities, arising from in-place leases, excluding amounts held for sale, if applicable (in thousands):
 Intangible Lease AssetsIntangible
Lease
Origination
Costs		Intangible
Below-Market
In-Place Lease
Liabilities
Above-Market
In-Place
Lease Assets		Absorption
Period Costs
September 30, 2019Gross$2,482  $104,587  $56,147  $28,902  
Accumulated Amortization(1,160) (55,183) (32,630) (13,913) 
Net$1,322  $49,404  $23,517  $14,989  
December 31, 2018Gross$3,174  $147,668  $99,440  $42,847  
Accumulated Amortization(1,060) (81,220) (65,348) (21,766) 
Net$2,114  $66,448  $34,092  $21,081  
  Intangible Lease Assets 
Intangible
Lease
Origination
Costs
 
Intangible
Below-Market
In-Place Lease
Liabilities
 
Above-Market
In-Place
Lease Assets
 
Absorption
Period Costs
 
September 30, 2017Gross$1,588
 $112,145
 $83,599
 $29,328
 Accumulated Amortization(784) (67,035) (55,532) (19,437)
 Net$804
 $45,110
 $28,067
 $9,891
December 31, 2016Gross$10,589
 $154,582
 $128,857
 $77,939
 Accumulated Amortization(9,305) (83,254) (74,578) (44,564)
 Net$1,284
 $71,328
 $54,279
 $33,375
Intangible Assets and Liabilities Arising From In-Place Leases Where Columbia Property Trust Is the Lessee

As of December 31, 2018, Columbia Property Trust had gross below-market lease assets of approximately $32.6 million, net of accumulated amortization of $2.6 million. These below-market lease assets were reclassified to operating lease assets upon adoption of ASC 842, as described below. See Note 10, Leases, for more information.
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Amortization of Intangible Assets and Liabilities Arising From In-Place Leases
For the three and nine months ended September 30, 20172019 and 2016,2018, Columbia Property Trust recognized the following amortization of intangible lease assets and liabilities (in thousands):
 Intangible Lease AssetsIntangible
Lease
Origination
Costs		Intangible
Below-Market
In-Place Lease
Liabilities
Above-Market
In-Place
Lease Assets		Absorption
Period Costs
For the Three Months Ended September 30, 2019$80  $3,423  $1,946  $1,354  
For the Three Months Ended September 30, 2018$51  $4,193  $2,376  $1,473  
For the Nine Months Ended September 30, 2019$244  $10,613  $6,066  $4,181  
For the Nine Months Ended September 30, 2018$153  $12,968  $7,333  $5,377  
12

 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, 2017$22
 $3,268
 $1,957
 $1,006
For the three months ended September 30, 2016$594
 $6,133
 $3,757
 $2,768
For the nine months ended September 30, 2017$471
 $12,525
 $7,786
 $5,322
For the nine months ended September 30, 2016$2,014
 $22,602
 $13,811
 $10,206
The net intangible assets and liabilities remaining as of September 30, 20172019 will be amortized as follows, (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 remainder of 2017$22
 $2,936
 $1,875
 $898
For the years ending December 31:       
201889
 11,083
 7,315
 3,278
201989
 9,800
 7,024
 3,128
202089
 7,880
 5,979
 1,992
202189
 4,043
 2,057
 327
202289
 2,664
 1,079
 94
Thereafter337
 6,704
 2,738
 174
 $804
 $45,110
 $28,067
 $9,891
Intangible Assets and Liabilities Arising from In-Place Leases 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 30, 2017 and December 31, 2016, and recognized amortization of these assets of approximately $0.6 millionexcluding amounts held for the three months ended September 30, 2017 and 2016, and approximately $1.9 million for the nine months ended September 30, 2017 and 2016, respectively.

As of September 30, 2017, the remaining net below-market intangible lease assets will be amortized as followssale, if applicable (in thousands):
For the remainder of 2017$637
For the years ending December 31: 
20182,549
20192,549
20202,549
20212,549
20222,549
Thereafter105,403
 $118,785

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 Intangible Lease AssetsIntangible
Lease
Origination
Costs		Intangible
Below-Market
In-Place Lease
Liabilities
Above-Market
In-Place
Lease Assets		Absorption
Period Costs
For the remainder of 2019$45  $2,712  $1,300  $1,107  
For the years ending December 31:
2020172  9,373  4,502  3,519  
2021172  6,977  3,329  1,591  
2022172  5,483  2,325  1,287  
2023172  4,842  2,096  1,264  
2024172  4,506  1,995  1,118  
Thereafter417  15,511  7,970  5,103  
$1,322  $49,404  $23,517  $14,989  
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;purposes and currently does not have any derivatives that are not designated as hedges; however, certain of its derivatives may, at times, not qualify for hedge accounting treatment. Columbia Property Trust records the fair value of its interest rate swaps on its consolidated balance sheet either as prepaid expenses and other assets or as accounts payable, accrued expenses, and accrued capital expenditures. Changes in the fair value of the effective portion of interest rate swaps that are designated as cash 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(loss). Changes in the fair value of interest rate swaps that do not qualify for hedge accounting treatment are recorded as gain or loss on interest rate swaps. Amounts received or paid under interest rate swap agreements are recorded as interest expense for contracts that qualify for hedge accounting treatment and as gain or loss on interest rate swaps for contracts that do not qualify for hedge accounting treatment. As of September 30, 2019, Columbia Property Trust has 2 interest rate swaps with an aggregate notional value of $450.0 million. The following tables provide additional information related to Columbia Property Trust's interest rate swaps (in thousands):
    Estimated Fair Value as of
Instrument Type Balance Sheet Classification September 30,
2017		 December 31,
2016
Derivatives designated as hedging instruments:      
Interest rate contracts Accounts payable $(737) $(882)
Estimated Fair Value as of
Instrument TypeBalance Sheet ClassificationSeptember 30,
2019		December 31,
2018
Derivatives designated as hedging instruments:
Interest rate contractsPrepaid expenses and other assets$— $2,344 
Interest rate contractsAccounts payable$4,759 $— 
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,
 2017 2016 2017 2016
Market value adjustment to interest rate swaps designated as hedging instruments and included in other comprehensive income$148
 $1,250
 $146
 $(5,629)
 Three Months Ended
September 30,		Nine Months Ended
September 30,
 2019201820192018
Market value adjustment to interest rate swaps designated as hedging instruments and included in other comprehensive income (loss)$(3,068) $722  $(7,103) $4,174  
During the periods presented, there was no0 hedge ineffectiveness was required to be recognized into earnings on the interest rate swaps that qualified for hedge accounting treatment.
Prepaid Expenses and Other Assets
Prepaid expenses are recognized over the period to which the good or service relates. Other assets are written off when the asset no longer has future value, or when the company is no longer obligated for the corresponding liability. As of September 30, 2017, prepaid expenses and other assets included $52.0 million of earnest money deposits for acquisitions, of which $40.0 million was applied to the purchase prices for transactions that closed in October 2017. See Note 3, Real Estate Transactions, for additional detail.
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,To the extent that Columbia Property Trust generally is notsatisfies the distribution requirement
13

but distributes less than 100% of its REIT taxable income, Columbia Property Trust would be subject to federal and state corporate income tax on income it distributes to stockholders.the undistributed income. Generally, Columbia Property Trust's stockholder distributions typically exceed its taxable income due to the inclusion of noncash expenses, such as depreciation, in taxable income. As a result, Columbia Property Trust typically does not incur federal income taxes, other than as described in the following paragraph.paragraph, because its stockholder distributions typically exceed its taxable income due to noncash expenses such as depreciation. Columbia Property Trust is, however, subject to certain state and local taxes related to the operations of properties in certain locations, which have been provided for in the accompanying consolidated financial statements.
Columbia Property Trust TRS, LLC Columbia KCP TRS, LLC, and Columbia EnergyKCP TRS, LLC (collectively, the "TRS Entities") are wholly owned subsidiaries of Columbia Property Trust and are organized as Delaware limited-liabilitylimited liability companies. The TRS

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Entities, among other things, provide tenant services that Columbia Property Trust, as a REIT, cannot otherwise provide. Columbia Property Trust has elected to treat the TRS Entities as taxable REIT subsidiaries. Columbia Property Trust may perform certain additional, noncustomary services for tenants of its buildings through the TRS Entities; however, any earnings related to such services are subject to federal and state income taxes. In addition, for Columbia Property Trust to continue to qualify as a REIT, Columbia Property Trust must limit its investments in taxable REIT subsidiaries to 25%20% of the value of the total assets. The TRS Entities' deferred tax assets and liabilities represent temporary differences between the financial reporting basis and the tax basis of assets and liabilities based on the enacted rates expected to be in effect when the temporary differences reverse. If applicable, Columbia Property Trust records interest and penalties related to uncertain tax positions as general and administrative expense in the accompanying consolidated statements of operations.
Reclassification
Certain prior period amounts may be reclassified to conform toIn connection with adopting Accounting Standard Codification 842, Leases ("ASC 842"), effective January 1, 2019, rental income and tenant reimbursements have been combined into the current-period financial statement presentation. Withinlease revenues line on the accompanying consolidated statements of operations management fees earned from unconsolidated joint ventures have been reclassified from other property income to a dedicated line item, asset and property management fee income, for all periods presented. See Recent Accounting Pronouncements below for additional details. In accordance with Accounting Standard Codification 360, Property, Plant, and Equipment ("ASC 360"), and in response to the Securities and Exchange Commission's Disclosure Update and Simplification release effective November 5, 2018, gains on sales of real estate assets have been moved to other income (expense) on the consolidated statements of operations for all periods presented.
Recent Accounting Pronouncements
In August 2017, the Financial Accounting Standards Board (the "FASB") issued Accounting Standard Update 2017-12, Targeted Improvements to Accounting for Hedging Activities ("ASU 2017-12"). ASU 2017-12 aligns reporting requirements for hedging relationships with risk management activities and simplifies the application of hedge accounting. ASU 2017-12 eliminates the concept of recognizing periodic hedge ineffectiveness for cash flow hedges and allows for ongoing qualitative, rather than quantitative, testing of hedge effectiveness. ASU 2017-12 will be effective forEffective January 1, 2019, Columbia Property Trust on January 1, 2019, with early adoption permitted. Columbia Property Trust anticipates that the adoption of ASU 2017-12 will result in a simplified process to determine the ongoing effectiveness of its cash flow hedge with no material impact on its consolidated financial statements or other disclosures.
In February 2017, the FASB issued Accounting Standard Update 2017-05, Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Non-Financial Assets ("ASU 2017-05"), which will apply to the partial sale of non-financial assets, including real estate assets, to unconsolidated joint ventures. ASU 2017-05 will require Columbia Property Trust to measure its residual joint venture interest in the properties transferred to unconsolidated joint ventures at fair value as of the transaction date by recognizing a gain or loss on 100% of the asset transferred (i.e. to fully step-up the basis of our residual investment in the joint venture). This ASU will apply to Columbia Property Trust's partial sales of the following real estate assets: Market Square, 333 Market Street, and University Circle. We expect to implement ASU 2017-05 effective January 1, 2018 using the modified-retrospective approach by recording a cumulative-effect adjustment to equity, and are in the process of evaluating the impact to the financial statements.
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 treatment of acquisitions. As a result, under the new standard, many acquisitions that previously qualified as business combinations will be treated as asset acquisitions. For asset acquisitions, unlike business combinations, transaction costs may be capitalized, and purchase price may be allocated on a relative fair-value basis. Columbia Property Trust expects the adoption of ASU 2017-01 to simplify purchase price allocations for future acquisitions. ASU 2017-01 is effective for Columbia Property Trust prospectively on January 1, 2018, with early adoption permitted. Columbia Property Trust plans to adopt ASU 2017-01 in the fourth quarter of 2017, in connection with the acquisition of 245-249 West 17th Street and 218 West 18th Street.
In February 2016, the FASB issued Accounting Standards Update2016-02, Leases ("ASU 2016-02"),adopted ASC 842, which amends the existing standards for lease accounting by requiring lessees to recognize most leases on their balance sheets and by making targeted changes to lessor accounting and reporting, includingrules with the classification of lease components and nonlease components, such as services provided to tenants. The new standard will require lesseesfollowing key changes:
•Lessees are required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months, and to classify such leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee, or not. This classification will determine whether the lease expense is recognized based on anusing the effective interest method (finance leases) or on a straight-line basis over the term of the lease (operating leases). Leases with a term of 12 months or less will be accounted for using an approach that is similar to existing guidance for operating leases today. The new standard requires lessors
•Lessors are required to account for leases using an approach that is substantially equivalentsimilar to existing guidance as applies tothe pre-existing rules for operating leases, sales-type leases, and direct financing leases, with a few targeted changes, including that: (i) lessors are no longer permitted to capitalize and amortize initial indirect costs incurred to obtain a lease, and (ii) provisions for uncollectible tenant receivables are reflected as a reduction to lease revenues, instead of as general and administrative expense.
In connection with transitioning to ASC 842, Columbia Property Trust elected to use certain practical expedients which impact Columbia Property Trust as follows:
•Prospective implementation. In-place contracts retain their character as to whether they meet the definition of a lease or not; in-place leases retain their classification as an operating, leases. sales-type, or direct financing lease; and prior-period accounting and presentation is unchanged.
•Rental income and tenant reimbursements for operating leases are combined in a single line on the statements of operations for all periods presented.
•Leases with a term of 12 months or less are expensed as incurred, as provided for in a practical expedient elected by Columbia Property Trust.
See Note 10, Leases, for additional information.
Accounting Standard Update 2018-13, Fair Value Measurement: Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement ("ASU 2016-022018-13"), which will be effective for Columbia Property Trust on January 1, 2019 and supersedes previous leasing standards. Once effective,2020, expands the disclosure requirements related to a change in fair value technique hierarchy. ASU 2018-13 is not expected to have a material impact on Columbia Property Trust's consolidated financial statements or disclosures.


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Columbia Property Trust anticipates separating lease components from nonlease components, which will be evaluated under ASU 2014-09, as described below.3.  Real Estate Transactions
In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"), which establishes a comprehensive model to account for revenues arising from contracts with customers. ASU 2014-09 applies to all contracts with customers, except those that are within the scope of other topics in the FASB's Accounting Standards Codification, such as real estate leases. ASU 2014-09 will require companies to perform a five-step analysis of transactions to determine when and how revenue is recognized. Columbia Property Trust expects that the new standard to apply primarily to fees earned from managing properties owned by its unconsolidated joint ventures. Given the structure of the asset and property management agreements currently in place with our unconsolidated joint ventures, we do not expect the ASU to materially impact the timing or amount of our revenues; however, we will be required to provide more extensive disclosures about our revenue streams and contracts with customers. ASU 2014-09 is effective for Columbia Property Trust on January 1, 2018, with early adoption permitted.
3.Real Estate Transactions
Acquisitions
During 2016 and 2017,2018, Columbia Property Trust acquired the following properties. Columbia Property Trust did not acquire any properties during the nine months ended September 30, 2019.
PropertyLocationDatePercent Acquired
Purchase Price(1)
(in thousands)
2018
799 BroadwayNew York, NYOctober 3, 201849.7 %$30,200  
(2)
Lindbergh Center – RetailAtlanta, GAOctober 24, 2018100.0 %$23,000  
(1)Exclusive of transaction costs and price adjustments.
(2)Purchase price is for Columbia Property Trust's partial interest in the property, which is owned through an unconsolidated joint venture.
799 Broadway Joint Venture
On October 3, 2018, Columbia Property Trust formed a joint venture with Normandy Real Estate Partners, an affiliate of Normandy, for the purpose of developing a 12-story, 182,000-square-foot office building at 799 Broadway in New York (the "799 Broadway Joint Venture"). Columbia Property Trust made an initial equity contribution of $30.2 million in the 799 Broadway Joint Venture for a 49.7% interest therein. At inception, the 799 Broadway Joint Venture acquired the property located at 799 Broadway for $145.5 million, exclusive of transaction costs and development costs, and borrowed $97.0 million under a construction loan with total capacity of $187.0 million.
Lindbergh Center – Retail
On October 24, 2018, Columbia Property Trust acquired the 147,000 square feet of ancillary retail and office space surrounding its existing property, Lindbergh Center, for a gross purchase price of $23.0 million. Lindbergh Center – Retail was sold in the Lindbergh Center disposition, as described below.

15

Dispositions
During 2018 and 2019, Columbia Property Trust disposed of the following properties, or partial interests in properties:properties of unconsolidated joint ventures. Additional information for certain of the disposition transactions is provided below the table.
PropertyLocationDate% Sold
Sales Price(1)
(in thousands)
Gain on Sale
(in thousands)
2019
Lindbergh CenterAtlanta, GASeptember 26, 2019100.0 %$187,000  $—  
One & Three Glenlake ParkwayAtlanta, GAApril 15, 2019100.0 %$227,500  $42,030  
2018
222 East 41st StreetNew York, NYMay 29, 2018100.0 %$332,500  $—  
263 Shuman BoulevardChicago, ILApril 13, 2018100.0 %$49,000  $24,039  
University Circle &
333 Market Street Joint Ventures		San Francisco, CAFebruary 1, 201822.5 %$235,300  $762  
Property Location Date Percent Acquired 
Purchase Price
(in thousands)(1)
1800 M Street(2)
 Washington, D.C. October 11, 2017 55.0% $231,550
245-249 West 17th Street & 218 West 18th Street(3)
 New York, NY October 11, 2017 100.0% $514,100
114 Fifth Avenue(4)
 New York, NY July 6, 2017 49.5% $108,900
(1)
Exclusive of transaction costs and price adjustments.
(2)
On October 11, 2017, Columbia Property Trust entered a new joint venture partnership with Allianz Real Estate ("Allianz"), which simultaneously acquired 1800 M Street, a 10-story, 581,000-square-foot office building in Washington, D.C., that is 94% leased, for a total of $421.0 million (the “1800 M Street Joint Venture”). Columbia Property Trust owns a 55% interest in the 1800 M Street Joint Venture, and Allianz owns the remaining 45%. As of September 30, 2017, Columbia Property Trust had deposited $15.0 million in earnest money related to 1800 M Street, which is included in prepaid expenses and other assets on the accompanying consolidated balance sheet.
(3)
245-249 West 17th Street is made up of two interconnected 12- and 6-story towers, totaling 281,000 square feet of office and retail space; and 218 West 18th Street is a 12-story, 166,000-square-foot office building. The buildings are located in New York, 100% leased, and unencumbered by debt. As of September 30, 2017, Columbia Property Trust had deposited $25.0 million in earnest money related to this transaction, which is included in prepaid expenses and other assets on the accompanying consolidated balance sheet.
(4)
Columbia Property Trust acquired a 49.5% equity interest in a joint venture that owns the 114 Fifth Avenue property from Allianz (the "114 Fifth Avenue Joint Venture"). 114 Fifth Avenue is a 19-story, 352,000-square-foot building located in Manhattan’s Flatiron District that is 100% leased, and is unencumbered by debt. The 114 Fifth Avenue Joint Venture is owned by Columbia Property Trust (49.5%), Allianz (49.5%), and L&L Holding Company (1.0%). L&L Holding Company is the general partner and will continue to perform asset and property management services for the property.
149 Madison Avenue Contract(1)Exclusive of transaction costs and price adjustments.
In FebruaryLindbergh Center
On September 26, 2019, Columbia Property Trust closed on the sale of Lindbergh Center, including Lindbergh Center – Retail, for a gross sales price of $187.0 million, exclusive of transaction costs. Columbia Property Trust recognized an impairment loss of $23.4 million related to this property in the third quarter of 2019, as further described in Note 2, Summary of Significant Accounting Policies. As of September 30, 2019, $46.0 million of the proceeds from this transaction were used to pay down the Revolving Credit Facility, as described in Note 5, Line of Credit and Notes Payable.
One & Three Glenlake Parkway
On April 15, 2019, Columbia Property Trust closed on the sale of One & Three Glenlake Parkway in Atlanta, for a gross sale price of $227.5 million, exclusive of $33.6 million of adjustments for tenant improvements and rent abatements funded at closing. The proceeds from this transaction were used to pay down the Revolving Credit Facility, as described in Note 5, Line of Credit and Notes Payable.
222 East 41st Street
On May 29, 2018, Columbia Property Trust closed on the sale of 222 East 41st Street in New York, for $332.5 million, exclusive of transaction costs. Columbia Property Trust recognized an impairment loss of $30.8 million related to this property in the second quarter of 2018, as further described in Note 2, Summary of Significant Accounting Policies. The proceeds from this transaction were used to fully repay the $180.0 million remaining balance on a bridge loan.
263 Shuman Boulevard
On April 13, 2018, Columbia Property Trust transferred 263 Shuman Boulevard to the lender, which extinguished the $49.0 million mortgage liability, accrued interest, and accrued property operating costs, and resulted in a $24.0 million gain on extinguishment of debt.
University Circle & 333 Market Street Joint Ventures
On July 6, 2017, Columbia Property Trust deposited $12.0 million of earnest money upon enteringcontributed University Circle and 333 Market Street to joint ventures, and simultaneously sold a firm contract to purchase 149 Madison Avenue, a 12-story, 127,000-square-foot office building22.5% interest in New York. Closing is expected to occur later this year.

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Dispositions
During 2016 and 2017,these joint ventures. On February 1, 2018, Columbia Property Trust sold an additional 22.5% interest in University Circle and 333 Market Street to its joint venture partner for $235.3 million, which resulted in a $0.8 million gain on sale of unconsolidated joint venture interests. The gain on sale is calculated as the following properties:
Property Location Date 
Sales Price(1) 
(in thousands)
 Gain (Loss) on Sale (in thousands)
2017         
University Circle & 333 Market Street(2)
 San Francisco, CA July 6, 2017 $234,000
 $102,365
 
Key Center Tower & Marriott(3)
 Cleveland, OH January 31, 2017 $267,500
 $9,500
 
Houston Properties(4)
 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
 $—
(5) 
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)
Exclusivenet sales price over the adjusted carrying value of the joint venture interest sold. Following this transaction, costs and price adjustments.
(2)
Columbia Property Trust contributed the 333 Market Street building and the University Circle property to joint ventures, and simultaneously sold a 22.5% interest in those joint ventures for $234.0 million to Allianz Real Estate ("Allianz"), an unrelated third party (collectively, the "San Francisco Joint Ventures").
Upon the earlier of July 6, 2018, or when Columbia Property Trust and Allianz jointly invest $600.0 million in additional assets acquisitions (excluding the 114 Fifth Avenue building described above), Allianz will acquire another 22.5%owns a 55.0% interest in eachthe University Circle and 333 Market Street joint ventures. The proceeds from the February 1, 2018 transaction were used to reduce the balance on a bridge loan and the Revolving Credit Facility, as described in Note 5, Line of the San Francisco Joint Ventures at the same aggregate price, $234.0 million, adjusted for any capital expenditures made during the intervening period at the properties. The $600.0 million investment hurdle has been reduced by the aggregate adjusted purchase price for the 1800 M Street acquisition described above.Credit and Notes Payable.

(3)
Key Center Tower & Marriott were sold in one transaction for $254.5 million of gross proceeds and a $13.0 million, 10-year accruing note receivable from the principal of the buyer. As a result, Columbia Property Trust has applied the installment method to account for this transaction, and deferred $13.0 million of the total $22.5 million gain on sale. The Key Center Tower and Key Center Marriott generated net income of $9.6 million for the first nine months of 2016, and a net loss of $1.9 million for the first 31 days of 2017, excluding the gain on sale.
(4)
5 Houston Center, Energy Center I, and 515 Post Oak were sold in one transaction. These properties generated net income of $10.8 million for the first nine months of 2016, and a net loss of $14.9 thousand for the first six days of 2017, excluding the gain on sale.
(5)
Columbia Property Trust recorded a de minimus loss on the sale of 9127 South Jamaica Street.

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4. Unconsolidated Joint Ventures
As of September 30, 2017,2019 and December 31, 2018, Columbia Property Trust ownsowned interests in the following properties through joint ventures, which are accounted for using the equity method of accounting:
Carrying Value of Investment
Joint VentureProperty NameGeographic MarketOwnership Interest
September 30,
2019(1)
December 31, 2018
Market Square Joint VentureMarket SquareWashington, D.C.51.0 %$136,775  $134,250  
University Circle Joint VentureUniversity CircleSan Francisco55.0 %286,405  292,951  
333 Market Street Joint Venture333 Market StreetSan Francisco55.0 %270,799  273,783  
114 Fifth Avenue Joint Venture114 Fifth AvenueNew York49.5 %90,662  99,283  
1800 M Street Joint Venture1800 M StreetWashington, D.C.55.0 %233,605  237,333  
799 Broadway Joint Venture(2)
799 BroadwayNew York, NY49.7 %40,324  33,753  
$1,058,570  $1,071,353  
         Carrying Value of Investment
Joint Venture Property Name Geographic Market Ownership Interest September 30, 2017 December 31, 2016
Market Square Joint Venture Market Square Washington, D.C. 51.0%  $126,638
 $127,346
University Circle Joint Venture(1)
 University Circle San Francisco 77.5%
(2) 
 170,712
 —
333 Market Street Joint Venture(1)
 333 Market Street San Francisco 77.5%
(2) 
 288,405
 —
114 Fifth Avenue Joint Venture(1)
 114 Fifth Avenue New York 49.5%  112,350
 —
         $698,105
 $127,346
(1)Includes basis differences. There is an aggregate net difference of $279.9 million and $282.0 million as of September 30, 2019 and December 31, 2018, respectively, between the historical costs recorded at the joint venture level, and Columbia Property Trust's investments in unconsolidated joint ventures. Such basis differences result from the timing of each partner's joint venture interest acquisition; and formation costs incurred by Columbia Property Trust. Basis differences are amortized to income (loss) from unconsolidated joint ventures over the lives of the underlying assets or liabilities.
(1)
See Note 3, Real Estate Transactions, for a description of the formation of these joint ventures in the current period.
(2)
Upon the earlier of July 6, 2018, or when Columbia Property Trust and Allianz jointly invest $600.0 million in additional assets acquisitions (excluding 114 Fifth Avenue), Allianz will acquire from Columbia Property Trust an additional 22.5% interest in each of the University Circle Joint Venture and the 333 Market Street Joint Venture, thereby reducing Columbia Property Trust's equity interest in each joint venture to 55.0%. The $600.0 million investment hurdle has been reduced by the aggregate adjusted purchase price for the 1800 M Street acquisition described in Note 3, Real Estate Transactions.
(2)Columbia Property Trust capitalized interest of $0.9 million on its investment in the 799 Broadway Joint Venture during the nine months ended September 30, 2019.
Columbia Property Trust has determined that NaN of its unconsolidated joint ventures are variable interest entities. However, Columbia Property Trust and its partners have substantive participation rights in the joint ventures, including management selection and termination, and the approval of operating and capital decisions. As such, Columbia Property Trust uses the equity method of accounting to record its investment in these joint ventures. Under the equity method, the investment in the joint venture is recorded at cost and adjusted for cash contributions and distributions, and allocations of income or loss.
Columbia Property Trust evaluates the recoverability of its investmentinvestments in unconsolidated joint ventures in accordance with accounting standards for equity investments by first reviewing the investment for any indicators of impairment. If indicators are present, Columbia Property Trust estimates the fair value of the investment. If the carrying value of the investment is greater than the estimated fair value, management makes an assessment of whether the impairmentdeficit is "temporary" or "other-than-temporary."other-than-temporary," and if other-than-temporary, reduces the carrying value to reflect the estimated fair value by recording an impairment loss. 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 asanalysis described above, Columbia Property Trust has determined that none of its investments in joint ventures are other than temporarily impaired as of September 30, 2017.2019.
Mortgage Debt and Related Guaranty
The Market Square joint venture is the only joint venture with mortgage debt. As of September 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. Columbia Property Trust guarantees a portion of the Market Square mortgage note, the amount of which has been reduced to $11.2 million as of September 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.

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Condensed Combined Financial Information
Summarized balance sheet information for each of the unconsolidated joint ventures is as follows (in thousands):
Total AssetsTotal Debt
Total Equity(1)
September 30,
2019		December 31, 2018September 30,
2019		December 31, 2018September 30,
2019		December 31, 2018
Market Square Joint Venture$581,878  $582,176  $324,801  
(2)
$324,762  $244,696  $241,581  
University Circle Joint Venture222,325  224,746  —  —  215,199  219,390  
333 Market Street Joint Venture370,444  375,884  —  —  354,782  360,915  
114 Fifth Avenue Joint Venture488,784  377,970  —  —  133,038  149,243  
1800 M Street Joint Venture436,385  447,585  —  —  422,308  429,016  
799 Broadway Joint Venture188,831  168,390  104,453  
(3)
95,630  77,572  67,189  
$2,288,647  $2,176,751  $429,254  $420,392  $1,447,595  $1,467,334  
  Total Assets Total Debt Total Equity
  September 30, 2017 December 31, 2016 September 30, 2017 December 31, 2016 September 30, 2017 December 31, 2016
Market Square Joint Venture $582,664
 $587,344
 $324,682
 $324,656
 $239,207
  $242,802
University Circle Joint Venture 225,434
 —
 —
 —
 217,138
(1) 
 —
333 Market Street Joint Venture 385,930
 —
 —
 —
 369,177
(1) 
 —
114 Fifth Avenue Joint Venture 388,786
 —
 —
 —
 174,246
(1) 
 —
  $1,582,814
 $587,344
 $324,682
 $324,656
 $999,768
  $242,802
(1)Excludes basis differences (see footnote (1) to the Carrying Value of Investment table above).
(1)
(2)The Market Square Joint Venture has a $325.0 million mortgage note. The Market Square mortgage note bears interest at 5.07% and matures on July 1, 2023.
(3)Reflects $108.4 million outstanding, net of $3.9 million of net unamortized deferred financing costs, on the 799 Broadway construction loan. The 799 Broadway construction loan is being used to finance a portion of the 799 Broadway development project, has total capacity of $187.0 million, and bears interest at LIBOR, capped at 4.00%, plus a spread of 425 basis points (the "Construction Loan").  A portion of the monthly interest payments accrue into the balance of the loan. The Construction Loan matures on October 9, 2021, with 2 one-year extension options. For a discussion of Columbia Property Trust's equity guaranty related to the Construction Loan, see Note 7, Commitments and Contingencies.
There is an aggregate basis difference of $30.8 million related to the University Circle Joint Venture, the 333 Market Street Joint Venture and the 114 Fifth Avenue Joint Venture. Such difference represents the differences between the historical costs reflected at the joint venture level, and Columbia Property Trust's investment in the joint ventures. The basis differences result from the timing of each partner's acquisition of an interest in the joint venture and formation costs incurred by Columbia Property Trust, and will be amortized to income (loss) from unconsolidated joint ventures over the life of the related assets.
Summarized income statement information for the unconsolidated joint ventures for the three months ended September 30, 20172019 and September 30, 20162018 is as follows (in thousands):
Total RevenuesNet Income (Loss)
Columbia Property Trust's Share of Net Income (Loss)(1)
201920182019201820192018
Market Square Joint Venture$12,195  $10,996  $(2,810) $(3,120) $(1,433) $(1,592) 
University Circle Joint Venture10,522  11,577  5,840  6,601  3,212  3,630  
333 Market Street Joint Venture7,039  6,677  3,748  3,602  2,061  1,981  
114 Fifth Avenue Joint Venture10,943  10,210  (2,649) (2,740) (1,311) (1,357) 
1800 M Street Joint Venture9,733  9,482  1,576  1,422  867  782  
799 Broadway Joint Venture—  —  (85) —  (42) —  
$50,432  $48,942  $5,620  $5,765  $3,354  $3,444  
  Total Revenues Net Income (Loss) Columbia Property Trust's Share of Net Income (Loss)
  2017 2016 2017 2016 2017 2016
Market Square Joint Venture $10,474
 $9,787
 $(4,089) $(3,799) $(2,086) $(1,937)
University Circle Joint Venture 9,448
 —
 4,810
 —
 3,701
 —
333 Market Street Joint Venture 6,306
 —
 3,381
 —
 2,593
 —
114 Fifth Avenue Joint Venture 9,832
 —
 (2,332) —
 (1,355) —
  $36,060
 $9,787
 $1,770
 $(3,799) $2,853
 $(1,937)
(1)Excludes amortization of basis differences (see footnote to (1) the Carrying Value of Investment table above), which are recorded as income (loss) from unconsolidated joint ventures in the accompanying consolidated statements of operations.
Summarized income statement information for the unconsolidated joint ventures for the nine months ended September 30, 20172019 and September 30, 20162018 is as follows (in thousands):
Total RevenuesNet Income (Loss)
Columbia Property Trust's Share of Net Income (Loss)(1)
201920182019201820192018
Market Square Joint Venture$35,424  $33,260  $(8,543) $(9,127) $(4,357) $(4,655) 
University Circle Joint Venture33,439  31,921  18,569  17,349  10,213  9,944  
333 Market Street Joint Venture21,131  20,020  11,203  10,717  6,161  6,165  
114 Fifth Avenue Joint Venture32,036  30,999  (7,798) (7,433) (3,860) (3,680) 
1800 M Street Joint Venture28,529  27,949  3,403  3,101  1,872  1,705  
799 Broadway Joint Venture—  —  (749) —  (372) —  
$150,559  $144,149  $16,085  $14,607  $9,657  $9,479  
(1)Excludes amortization of basis differences (see footnote (1) to the Carrying Value of Investment table above), which are recorded as income (loss) from unconsolidated joint ventures in the accompanying consolidated statements of operations.
18

  Total Revenues Net Income (Loss) Columbia Property Trust's Share of Net Income (Loss)
  2017 2016 2017 2016 2017 2016
Market Square Joint Venture $31,036
 $31,226
 $(11,348) $(10,669) $(5,788) $(5,441)
University Circle Joint Venture 9,448
 —
 4,810
 —
 3,701
 —
333 Market Street Joint Venture 6,306
 —
 3,381
 —
 2,593
 —
114 Fifth Avenue Joint Venture 9,832
 —
 (2,332) —
 (1,355) —
  $56,622
 $31,226
 $(5,489) $(10,669) $(849) $(5,441)
PropertyAsset and AssetProperty Management Fees
Columbia Property Trust provides propertyasset and assetproperty management services to the Market Square Joint Venture, the University Circle Joint Venture,and the 333 Market Street Joint Venture, and the 1800 M Street Joint Venture. Under these agreements, Columbia Property Trust oversees the day-to-day operations of these joint ventures and their properties, including property management, property accounting, and other administrative services. During the three and nine months ended September 30, 20172019 and 2016,2018, Columbia Property Trust earned the following fees from these unconsolidated joint ventures:ventures (in thousands):
  For the three months ended September 30, For the nine months ended September 30,
  2017 2016 2017 2016
Market Square Joint Venture $496
 $511
 $1,468
 $1,655
University Circle Joint Venture 480
 —
 480
 —
333 Market Street Joint Venture 178
 —
 178
 —
  $1,154
 $511
 $2,126
 $1,655

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Three Months Ended
September 30,		Nine Months Ended
September 30,
2019201820192018
Market Square Joint Venture$558  $521  $1,705  $1,596  
University Circle Joint Venture610  565  1,755  1,657  
333 Market Street Joint Venture204  193  615  586  
1800 M Street Joint Venture542  546  1,606  1,563  
$1,914  $1,825  $5,681  $5,402  
Columbia Property Trust also received reimbursements of property operating costs of $0.9$1.0 million and $0.1$1.1 million related to managing the above properties for the three months ended September 30, 20172019 and 2016, respectively,2018, respectively; and $1.2 million and $0.4$3.2 million for the nine months ended September 30, 20172019 and 2016, respectively, which2018. These reimbursements are included in other property income revenues in the accompanying consolidated statements of operations. PropertyAsset and property management fees of $0.3$0.5 million and $0.1$0.7 million respectively, were due to Columbia Property Trust from the joint ventures and are included in prepaid expenses and other assets on the accompanying consolidated balance sheets as of September 30, 20172019 and December 31, 2016,2018, respectively. Additionally, during 2019, Columbia Property Trust leased office space from the Market Square Joint Venture, and the 799 Broadway Joint Venture continues to lease retail space from Columbia Property Trust. Under these leases, Columbia Property Trust paid $86,000 to the Market Square Joint Venture and received $90,000 from the 799 Broadway Joint Venture, for the nine months ended September 30, 2019.

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5. Line of Credit and Notes Payable
As of September 30, 20172019 and December 31, 2016,2018, Columbia Property Trust had the following line of credit and notes payable indebtedness (excluding bonds payable; see Note 6, Bonds Payable) (in thousands):
FacilitySeptember 30,
2019		December 31,
2018
Revolving Credit Facility$300,000  $482,000  
$150 Million Term Loan150,000  150,000  
Less: Deferred financing costs related to term loans and notes payable, net of accumulated amortization(2,237) (2,692) 
$447,763  $629,308  
On December 7, 2018, Columbia Property Trust amended and restated its $500.0 million revolving credit facility and $300.0 million unsecured term loan (together, the "Credit Agreement"). The Credit Agreement provides for (i) a $650.0 million unsecured revolving credit facility (the "Revolving Credit Facility"), with an initial term ending January 31, 2023 and 2 six-month extension options (for a total possible extension option of one year to January 31, 2024), subject to the paying of certain fees and the satisfaction of certain other conditions, and (ii) a 12-month, delayed-draw, $300.0 million unsecured term loan, with a term ending January 31, 2024 (the "$300 Million Term Loan"). The $300 Million Term Loan remains undrawn at September 30, 2019 and may be drawn until December 7, 2019.
At Columbia Property Trust's option, borrowings under the Credit Agreement bear interest at either (i) the alternate base rate plus an applicable margin based on five stated pricing levels ranging from 0.00% to 0.45% for the Revolving Credit Facility and 0.00% to 0.65% for the $300 Million Term Loan, or (ii) the LIBOR rate, as defined in thousands:the credit agreement, plus an applicable margin based on five stated pricing levels ranging from 0.775% to 1.45% for the Revolving Credit Facility and 0.85% to 1.65% for the $300 Million Term Loan, in each case based on the Columbia Property Trust's credit rating.
Facility September 30,
2017		 December 31,
2016
$300 Million Term Loan $300,000
 $300,000
$150 Million Term Loan 150,000
 150,000
263 Shuman Boulevard building mortgage note(1)
 49,000
 49,000
One Glenlake building mortgage note 23,978
 26,315
650 California Street building mortgage note —
 126,287
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 (2,611) (3,136)
  $520,367
 $721,466
(1)
The OfficeMax lease expired in May 2017, and the mortgage note matured in July 2017. Columbia Property Trust is working with the special-servicer to effect the transfer of the property to the lender in settlement of the loan principal, accrued interest expense and accrued property operating expenses. In the third quarter of 2017, Columbia Property Trust accrued related interest expense of $1.3 million at the default rate of 10.55%, and property operating expenses of $0.2 million, primarily related to property taxes.
Fair Value of Debt
The estimated fair value of Columbia Property Trust's line of credit and notes payable as of September 30, 20172019 and December 31, 2016,2018, was approximately $524.2$450.1 million and $728.5$632.1 million, respectively. The related carrying value of the line of credit and notes payable as of September 30, 20172019 and December 31, 2016,2018, was $523.0$450.0 million and $724.6$632.0 million, respectively. Columbia Property Trust estimated the fair value of the $300$150 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).
Interest Rate Swap
Effective August 13, 2019, Columbia Property Trust entered into a $300.0 million interest rate swap agreement to effectively fix the interest rate on the $300 Million Term Loan at 2.55% (LIBOR, as defined, plus 100 basis points). Currently, $0 has been drawn on the $300 Million Term Loan, which may be drawn through December 7, 2019. Until the $300 Million Term Loan is drawn, the interest rate swap has been temporarily assigned to reduce the interest rate on borrowings under the Revolving Credit Facility. The fair values of all other debt instruments were estimated basedinterest rate swap may be moved to alternate borrowings with substantially similar terms, and is scheduled to mature on discounted cash flow analyses using the current incremental borrowing ratesAugust 13, 2024. The interest rate swap qualifies for similar types of borrowing arrangements as of the respective reporting dates. The discounted cash flow method of assessinghedge accounting treatment; therefore, changes in its fair value resultsare recorded as a market value adjustment to interest rate swap in a general approximationthe accompanying consolidated statements of value, and such value may never actually be realized.other comprehensive income.
Interest Paid and Capitalized and Debt Covenants
During the nine months ended September 30, 20172019 and 2016,2018, Columbia Property Trust made interest payments totalingof approximately $15.6$14.2 million and $21.7$16.7 million, respectively,respectively.
Columbia Property Trust capitalizes interest on development, redevelopment, and improvement projects funded directly and through its interest in unconsolidated joint ventures, using the weighted-average interest rate of its consolidated borrowings for the period. During the nine months ended September 30, 2019, Columbia Property Trust capitalized interest of $3.8 million, $2.9 million of which approximately $0.4was capitalized to construction in progress, and $0.9 million and $0.2of which was capitalized to investments in unconsolidated joint ventures. During the nine months ended September 30, 2018, Columbia Property Trust capitalized interest of $2.9 million, respectively,all of which was capitalized. capitalized to construction in progress. For the nine months ended September 30, 2019, the weighted average interest rate on Columbia Property Trust’s outstanding borrowings was 3.58%.
Debt Covenants
As of September 30, 2017,2019, Columbia Property Trust believes it iswas in compliance with the restrictive financialall of its debt covenants on its term loans and the Revolving Credit Facility, and notes payable obligations.Facility.
Debt Repayments
On August 17, 2017, Columbia Property Trust repaid the $124.8 million balance of the 650 California Street building mortgage note, which was originally scheduled to mature on July 1, 2019. Columbia Property Trust recognized a loss on early extinguishment of debt of $0.3 million related to unamortized deferred financing costs.
On March 10, 2017, Columbia Property Trust repaid the $73.0 million balance of the 221 Main Street building mortgage note, which was originally scheduled to mature on May 10, 2017. Columbia Property Trust recognized a loss on early extinguishment of debt of $45,000 related to unamortized deferred financing costs.


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Term Loan Amendment
On July 25, 2017, Columbia Property Trust amended the terms of its $150 Million Term Loan, to reduce the current interest rate from 3.52% to 3.07% per annum. The amendment reduced the interest rate from LIBOR, plus an applicable margin ranging from 1.40% to 2.35%, to LIBOR, plus an applicable margin ranging from 0.90% to 1.75%. The maturity date, debt covenants, and other terms of the $150 Million Term Loan are unchanged. The interest rate 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 issuedhas 2 series of bonds outstanding as of September 30, 2019 and December 31, 2018: $350.0 million of 10-year, unsecured 3.650% senior notes issued 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; and $350.0 million of seven-year,10-year, unsecured 5.875%4.150% senior notes issued at 99.859% of their face value (the "2018"2025 Bonds Payable"), (collectively, the "Bonds Payable"). The 2026 Bonds PayableBoth series of bonds 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 is being amortized to interest expense over the term of the 2026 Bonds Payable using the effective interest method.payments. The principal amount of the 2026 Bonds Payable is due and payable on the maturity date, August 15, 2026.
In March 2015, Columbia Property Trust OP issued $350.0 million of 10-year, unsecured 4.150% senior notes at 99.859% of their face value (the "2025 Bonds Payable"), which are guaranteed by Columbia Property Trust. Columbia Property Trust OP received proceeds from2026, and the 2025 Bonds Payable, net of fees, of $347.2 million. The 2025 Bonds Payable require semi-annual interest payments in April and October based on a contractual annual interest rate of 4.150%. In the accompanying consolidated balance sheets, the 2025 Bonds Payable are shown net of the initial issuance discount of approximately $0.5 million, which 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 $20.1$20.0 million were made on the 2026 Bonds Payable and 2025 Bonds Payable during both the nine months ended September 30, 2017,2019 and $20.8 million in interest payments were made on the 2025 Bonds Payable or the 2018 Bonds Payable during the nine months ended September 30, 2016.2018. Columbia Property Trust is subject to substantially similar covenants under the 2026 Bonds Payable and the 2025 Bonds Payable. As of September 30, 2017,2019, 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 30, 20172019 and December 31, 2016,2018, the estimated fair value of the 2026 Bonds Payable and the 2025 Bonds Payable was approximately $702.9$729.5 million and $703.1$685.0 million, respectively. Therespectively, and the related carrying value, of the bonds payable, net of discounts, as of September 30, 20172019 and December 31, 2016,2018 was $698.5$698.8 million and $698.3$698.7 million, respectively. The fair value of the bonds payableBonds Payable was estimated based on a discounted cash flow analysesanalysis, using the current incremental borrowing ratesobservable market data for its bonds payable and similar types of borrowings as the bonds as of the respective reporting datesinstruments (Level 2). The discounted cash flow method of assessing fair value results in a general approximation of value, which may differ from the price that could be achieved in a market transaction.

7.Commitments and Contingencies
7.  Commitments and Contingencies
Commitments Under Existing Lease Agreements
Certain lease agreements include provisionstenant allowances that, at the option of the tenant, may obligate Columbia Property Trust to expend capital to expandimprove an existing property, or to provide other expenditures for the benefit of the tenant. As of September 30, 2017, no tenants have exercised such options that have not been materially satisfied or recorded2019, Columbia Property Trust had one individually significant unrecorded commitment of $21.4 million for the WeWork lease at 149 Madison Avenue. These commitments will be accrued as a liability on the accompanying consolidated balance sheet.related costs are incurred.
GuarantyGuaranties of Debt of Unconsolidated Joint VentureVentures
Upon entering intoAs of September 30, 2019, the Market Square799 Broadway Joint Venture has $108.4 million in October 2015,outstanding borrowings on the Construction Loan. Pursuant to a joint and several guaranty agreement with the Construction Loan lender, Columbia Property Trust entered into a guaranty of a $25.0 million portion ofand its joint venture partner are required to make aggregate additional equity contributions to the Market Square mortgage note,joint venture based on the initial expected project costs, less the amount of which is reduced as space is leased.equity contributions made to date. As a result of leasing, the guaranty has been reduced to $11.2 million as of September 30, 2017.2019, the remaining equity contribution requirement is $39.8 million, of which $19.8 million reflects Columbia Property Trust's allocated share. Equity contributions become payable by Columbia Property Trust believes thatto the likelihoodjoint venture when a capital call is received. As of making a payment under this guaranty is remote;September 30, 2019, 0 capital calls remain unpaid; therefore, no0 liability has been recorded related to this guaranty as of September 30, 2017.

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guaranty.
Litigation
Columbia Property Trust is subject to various legal proceedings, claims, and administrative proceedings arising in the ordinary course of business, some of which are expected to be covered by liability insurance. Management makes assumptions and estimates concerning the likelihood and amount of any reasonably possible loss relating to these matters using the latest information available. Columbia Property Trust records a liability for litigation if an unfavorable outcome is probable, and the amount of loss or range of loss can be reasonably estimated. If an unfavorable outcome is probable and a reasonable estimate of the loss is a range, Columbia 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.

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8.Stockholders' Equity

8. Stockholders' Equity
Common Stock Repurchase Program
Columbia Property Trust's board of directors authorized the repurchase of up to an aggregate of $200 million of its common stock, par value $0.01 per share, from September 4, 2015 through September 4, 2017 (the "2015 Stock Repurchase Program"). Under the 2015 Stock Repurchase Program, Columbia Property Trust acquired 5.6 million shares at an average price of $21.85 per share, for aggregate purchases of $121.4 million. Columbia Property Trust's board of directors authorized a second stock repurchase program to purchase up to an aggregate of $200.0 million of its common stock, par value $0.01 per share, from September 4, 20172019 through September 4, 20192021 (the "2017"2019 Stock Repurchase Program"). During the threenine months ended September 30, 2017,2019, Columbia Property Trust repurchased an additional 1.4 million shares at an average price of $21.02 per share, for aggregate purchases of $30.1 milliondid not make any stock repurchases under the 20152019 Stock Repurchase Program and 2017 Stock Repurchase Program.or the prior program. As of September 30, 2017, $194.82019, $200.0 million remains available for repurchases under the 20172019 Stock Repurchase Program. Common stock repurchases are charged against equity as incurred, and the repurchased shares are retired. Columbia Property Trust will continue to evaluate the purchase of shares, primarily through open market transactions, which are subject to market conditions and other factors.
Long-Term Incentive PlanCompensation
Columbia Property Trust maintains a shareholder-approved,stockholder-approved, long-term incentive plan (the "LTIP""LTI Plan") that provides for grants of up to 4.8 million shares of stock to be made to certain employees and independent directors of Columbia Property Trust.
In 2017,Employee Awards
Under the LTI Plan, Columbia Property Trust hasgrants time-based stock awards and performance-based restricted stock unit awards to its employees.
On January 1, 2019, Columbia Property Trust granted 139,825175,129 shares of common stock awards (the "Time-Based Restricted Shares") to employees, under the LTIP for 2017. Such awards are time-based andwhich will vest ratably on each anniversary of the grant over the next four years. Performance-basedOn January 1, 2019, Columbia Property Trust granted 221,199 of performance-based restricted stock unit awards representing 330,880 shares were also made in 2017.units (the "Performance-Based RSUs"), of which 75% will vest at the conclusion of a three-year performance period, and the remaining 25% will vest one year later. The payout of these performance-based awards can range from 0% to 150%, dependingthe 2019 Performance-Based RSUs will be determined based on Columbia Property Trust's total shareholderstockholder return relative to the FTSE NAREIT Equity Office Index, overIndex. Below is 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 20, 2017, Columbia Property Trust granted 193,535 shares of common stock to employees, net of 17,938 shares withheld to settle the related tax liability, under the LTIP for 2016 performance, of which 25% vested upon grant; the remaining shares will vest ratably, with the passage of time, on January 31, 2018, 2019, and 2020. Employees receive quarterly dividends related to their entire grant, including the unvested shares, on each dividend payment date. A summary of the activity for the employee stock grantsawards issued under the LTIP forLTI Plan in the nine months ended September 30, 2019:
Time-Based AwardsPerformance-Based Awards
Restricted Shares
(in thousands)
Weighted-Average
Grant-Date
Fair Value(1)
RSUs
(in thousands)
Weighted-Average
Grant-Date
Fair Value(2)
Unvested awards – beginning of period375  $22.15  454  $19.37  
Granted176  $19.36  256  
(3)
$17.66  
Vested(165) $21.99  (121) 
(3)
$19.08  
Unvested awards – end of period(4)
386  $20.95  589  $18.85  
(1)Reflects the weighted-average, grant-date fair value using the market closing price on the date of the respective grants.
(2)Reflects the weighted-average, grant-date fair value using a Monte Carlo valuation.
(3)Includes approximately 35,000 Performance-Based RSUs for amounts earned above the target performance level, as defined by the LTI Plan, for the period from January 1, 2017 follows:through December 31, 2018. These RSUs were granted and converted to shares in 2019.
(4)As of September 30, 2019, Columbia Property Trust expects approximately 371,000 of the 386,000 unvested restricted stock units to ultimately vest and approximately 567,000 of the 589,000 unvested Performance-Based RSUs to ultimately vest, assuming a weighted-average forfeiture rate of 3.8%, which was determined based on historical forfeiture rates.
  For the Nine Months Ended
September 30, 2017
  Shares
(in thousands)		 
Weighted-Average
Grant-Date
Fair Value(1)
Unvested shares – beginning of period 256
 $22.62
Granted 664
 $20.20
Vested (161) $22.67
Forfeited (9) $21.12
Unvested shares – end of period(2)
 750
 $20.48
Director Stock Grants
(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 30, 2017, we expect approximately 694,928 of the 750,000 unvested shares to ultimately vest, assuming a weighted average forfeiture rate of 4.7%, which was determined based on peer company data, adjusted for the specifics of the LTIP.
Columbia Property Trust grants equity retainers to its directors under the LTI Plan. Such grants are made annually for the following year and vest immediately. During the nine months ended September 30, 20172019 and 2016,2018, Columbia Property Trust paid equity retainers to its independent directors under the LTIP by grantinggranted the following shares, allequity retainers:
Date of GrantSharesGrant-Date Fair Value
May 14, 201928,000  $22.13  
May 14, 201831,743  $22.20  

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Table of which vested immediately:Contents

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
July 1, 2016 8,158
  $21.52
Stock-Based Compensation Expense
(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 months ended September 30, 20172019 and 2016,2018, 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,
2019201820192018
Amortization of time-based awards granted under the LTI Plan$831  $948  $2,519  $2,857  
Amortization of performance-based awards granted under the LTI Plan(1)
704  682  2,039  1,790  
Issuance of shares to independent directors—  —  619  705  
Total stock-based compensation expense$1,535  $1,630  $5,177  $5,352  
 Three Months Ended
September 30,		 Nine Months Ended
September 30,
 2017 2016 2017 2016
Amortization of LTIP awards$917
 $650
 $2,721
 $2,190
Amortization of future LTIP awards(1)
639
 91
 1,851
 797
Issuance of shares to independent directors—
 176
 937
 525
Total stock-based compensation expense$1,556
 $917
 $5,509
 $3,512
(1)Reflects amortization of awards made under the LTI Plan for service during the current period, for which shares will be issued in future periods.
(1)
Reflects amortization of LTIP awards for service during the current period, for which shares will be issued in future periods.
These expenses are included in general and administrative expenses –corporate in the accompanying consolidated statements of operations. As of September 30, 20172019 and December 31, 2016,2018, there was $9.9were $11.0 million and $3.2$8.6 million, respectively, of unrecognized compensation costs related to unvested awards under the LTIP,LTI Plan, which will be amortized over the respective vesting period, ranging from one to four years at the time of grant. Effective in 2017, Columbia Property Trust changed from an LTIP measured over a one-year performance period to an LTIP measured over a three-year performance period and, as a result, has issued additional unvested shares 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 months ended September 30, 20172019 and 20162018 (in thousands):
 Nine Months Ended
September 30,
 20192018
Investments in real estate funded with other assets$—  $617  
Extinguishment of 263 Shuman Boulevard mortgage note by transferring property to lender$—  $49,000  
Amortization of net discounts on debt$135  $135  
Accrued transaction costs$128  $—  
Accrued investments in unconsolidated joint ventures$163  $—  
Accrued capital expenditures and deferred lease costs$12,009  $14,299  
Operating lease liability recorded at adoption of ASC 842$34,791  $—  
Market value adjustments to interest rate swaps that qualify for hedge accounting treatment$(7,103) $4,174  
Cumulative-effect adjustment to equity for the adoption of ASU 2017-05 and ASU 2014-09$—  $358,098  
Stock-based compensation expense$5,177  $5,352  

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 Nine Months Ended
September 30,
 2017 2016
Investments in real estate funded with other assets$311
 $1,442
Real estate assets transferred to unconsolidated joint ventures$558,122
 $—
Other assets transferred to unconsolidated joint ventures$43,670
 $—
Other liabilities transferred to unconsolidated joint ventures$21,347
 $—
Discount on issuance of bonds payable$—
 $1,309
Deposits applied to sales of real estate$10,000
 $—
Amortization of net discounts on debt$135
 $222
Market value adjustments to interest rate swaps that qualify for hedge accounting treatment$146
 $(5,629)
Accrued capital expenditures and deferred lease costs$25,866
 $16,074
Accrued deferred financing costs$—
 $12
Common stock issued to employees and directors, and amortized (net of income tax withholdings)$4,061
 $2,339
10.  Leases
Columbia Property Trust as Lessee
Columbia Property Trust is a lessee on ground leases at certain of its investment properties, office space leases, and various information technology equipment leases. Operating lease assets represent Columbia Property Trust's right to use the underlying asset over the lease term, and operating lease liabilities represent Columbia Property Trust's obligation to make lease payments over the lease term. Operating lease liabilities are measured as the present value of lease payments over the lease term. As most of Columbia Property Trust's leases do not provide an implicit rate, Columbia Property Trust uses its incremental borrowing rate, based on information available at commencement, to calculate the present value of lease payments. Lease term extensions are included in the operating lease liability when it is reasonably certain that they will be exercised. Any variable payments for non-lease services provided under leases are expensed as incurred. Operating lease assets are measured based on the corresponding operating lease liability amount, reduced for lease incentives. At adoption of ASC 842, straight-line rent payable (receivable) balances and intangible lease asset (liability) balances were reclassified to the corresponding right of use assets. Operating lease expense is recognized on a straight-line basis over the lease term, and is recorded as property operating costs for ground leases and as general and administrative – corporate for all other operating leases. Contracts are evaluated at commencement to determine if the contract contains a lease, and the appropriate classification for such leases.
10.As of September 30, 2019, Columbia Property Trust has 1 ground lease with a remaining lease term of 58.3 years, inclusive of renewal options, which is included in operating lease assets of $29.7 million. Payments for all future periods under this ground lease have already been made. Thus, as of September 30, 2019, operating lease liabilities of $2.3 million include only the present value of future payments due under an office lease, which has a remaining lease term of three years, inclusive of renewal options. There were two ground leases associated with Lindbergh Center, which was sold in September 2019.
As of September 30, 2019, the future minimum lease payments to be made by Columbia Property Trust under its operating lease are as follows (in thousands):
Remainder of 2019$175  
2020728  
2021760  
2022793  
202367  
2024—  
Thereafter—  
     Total lease payments2,523  
Less: interest expense(188) 
Present value of lease liabilities$2,335  
Weighted-average remaining lease term (years)3.3 years
Weighted-average discount rate4.5 %
As of December 31, 2018, the future minimum lease payments to be made by Columbia Property Trust under its operating leases are as follows (in thousands):
2019$2,502  
20202,539  
20212,704  
20222,743  
20232,023  
Thereafter176,782  
       Total$189,293  
(1)
(1)These amounts relate to ground leases in place at Lindbergh Center, which was sold in September 2019.
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Columbia Property Trust's operating leases had the following impacts on the consolidated balance sheet as of September 30, 2019 (in thousands):
Ground Leases  Office Lease  Total Operating Leases  
Assets:
Total operating lease assets$27,964  $1,746  $29,710  
Liabilities:
Total operating lease liabilities$—  $2,335  $2,335  

Columbia Property Trust's operating leases had the following impacts on the consolidated statements of operations for the three and nine months ended September 30, 2019 (in thousands):
Three Months Ended
September 30, 2019		Nine Months Ended
September 30, 2019
Ground Leases  Office
Lease 		 Total Operating Leases  Ground Leases  Office
Lease 		 Total Operating Leases  
Property operating costs$661  $—  $661  $2,045  $—  $2,045  
General and administrative – corporate
—  145  145  —  435  435  
Total operating lease expenses$661  $145  $806  $2,045  $435  $2,480  
Columbia Property Trust's operating leases had the following impacts on the consolidated statements of cash flows for the nine months ended September 30, 2019 (in thousands):
Ground Leases  Office Lease  Total Operating Leases  
Cash paid for operating lease liabilities included in cash flows from operations$(1,329) $(522) $(1,851) 
Columbia Property Trust as Lessor
Columbia Property Trust owns and leases commercial real estate, primarily office space, to tenants under operating leases for specified periods of time. Some of Columbia Property Trust's leases contain extension and/or termination options; however, the exercise of these extensions or terminations is at the discretion of the tenant and subject to negotiations. Therefore, such options are only recognized once they are deemed reasonably certain, typically at the time the option is exercised. Rental income related to such leases is recognized on a straight-line basis over the remaining lease period, and is included in lease revenues on the consolidated statements of operations. If at any point during the term of a lease, it is determined that the collectability of a tenant receivable is not probable, such receivable is written off against lease revenues. Contracts are evaluated at commencement to determine if the contract contains a lease, as defined under ASC 842, and the appropriate classification for such leases. As of September 30, 2019, the weighted-average remaining term for such leases is approximately 7.0 years.
Lease revenues include fixed and variable payments. Fixed payments primarily relate to base rent and include payments related to lease terminations; and variable payments primarily relate to tenant reimbursements for certain property operating costs. Fixed and variable payments for the three and nine months ended September 30, 2019 are as follows (in thousands):
Three Months Ended
September 30, 2019		Nine Months Ended
September 30, 2019
Fixed payments$62,149  $191,200  
Variable payments6,814  19,226  
Total lease revenues$68,963  $210,426  
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As of September 30, 2019, the future minimum fixed lease payments due to Columbia Property Trust under non-cancelable operating leases are as follows (thousands):
Remainder of 2019$52,701  
2020221,974  
2021220,160  
2022204,954  
2023188,604  
2024179,994  
Thereafter856,251  
     Total$1,924,638  
As of December 31, 2018, the future minimum lease payments due to Columbia Property Trust under non-cancelable operating leases are as follows (in thousands):
2019$242,370  
2020247,826  
2021221,692  
2022209,845  
2023192,261  
Thereafter1,106,275  
     Total$2,220,269  

11.  Non-Lease Revenues
Columbia Property Trust derives most of its revenues from leases, as described in Note 10, Leases. Columbia Property Trust also has the following non-lease revenue streams.
Asset and Property Management Fee Income
Under asset and property management agreements in place with certain of its unconsolidated joint ventures, Columbia Property Trust earns revenue for performing asset and property management functions for properties owned through its joint ventures, as further described in Note 4, Unconsolidated Joint Ventures. For the three months ended September 30, 2019 and 2018, Columbia Property Trust earned revenues of $1.9 million and $1.8 million, respectively, under these agreements; and for the nine months ended September 30, 2019 and 2018, Columbia Property Trust earned revenues of $5.7 million and $5.4 million, respectively, under these agreements.
Leasing Override Fees
Under the asset management agreements for certain properties owned through unconsolidated joint ventures, Columbia Property Trust is eligible to earn leasing override fees equal to a percentage of the total rental payments to be made by the tenant over the term of the lease. For the three months ended September 30, 2019 and 2018, Columbia Property Trust earned leasing override fees of $52,500 and $24,000, respectively; and for the nine months ended September 30, 2019 and 2018, Columbia Property Trust earned leasing override fees of $74,600 and $62,000, respectively. Such fees are included in asset and property management fee income on the accompanying consolidated statements of operations.
Salary and Other Reimbursement Revenue
Under the property management agreements for certain properties owned through unconsolidated joint ventures, Columbia Property Trust receives reimbursements for salaries and property operating costs for services that are provided by Columbia Property Trust employees on an ongoing basis. For the three months ended September 30, 2019 and 2018, Columbia Property Trust earned salary and other reimbursement revenue of $1.1 million; and for the nine months ended September 30, 2019 and 2018, Columbia Property Trust earned salary and other reimbursement revenue of $3.3 million and $3.2 million, respectively. These amounts are included in other property income on the accompanying consolidated statements of operations.
Miscellaneous Revenue
Columbia Property Trust also receives revenues for services provided to its tenants through the TRS Entities, including fitness centers, shuttles, and cafeterias. For the three months ended September 30, 2019 and 2018, Columbia Property Trust earned miscellaneous revenue of $17,900 and $198,600, respectively; and for the nine months ended September 30, 2019 and 2018, Columbia Property
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Trust earned miscellaneous revenue of $253,300 and $556,200, respectively. These amounts are included in other property income on the accompanying consolidated statements of operations.

12. Earnings Per Share
For the three and nine months ended September 30, 20172019 and 2016,2018, in computing the basic and diluted earnings per share, net income has been reduced for the dividends paid on unvested shares related to unvested awardsgranted under the LTIP.LTI Plan. 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 months ended September 30, 20172019 and 20162018 (in thousands):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2019201820192018
Net income (loss)$(20,286) $6,429  $30,974  $4,488  
Distributions paid on unvested shares(77) (75) (232) (221) 
Net income (loss) used to calculate basic and diluted earnings per share$(20,363) $6,354  $30,742  $4,267  
  Three Months Ended
September 30,		 Nine Months Ended
September 30,
  2017 2016 2017 2016
Net income $101,534
 $36,898
 $177,389
 $56,881
Distributions paid on unvested shares (84) (77) (253) (237)
Net income used to calculate basic and diluted earnings per share $101,450
 $36,821

$177,136

$56,644
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 months ended September 30, 20172019 and 2016,2018, respectively (in thousands):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2019201820192018
Weighted-average common shares – basic116,522  117,609  116,498  118,237  
Plus incremental weighted-average shares from time-vested conversions, less assumed stock repurchases:
Previously granted awards, unvested123  126  102  88  
Future period LTI Plan awards176  472  162  424  
Weighted-average common shares – diluted116,821  118,207  116,762  118,749  

  Three Months Ended
September 30,		 Nine Months Ended
September 30,
  2017 2016 2017 2016
Weighted-average common shares – basic 120,293
 123,215
 121,270
 123,271
Plus incremental weighted-average shares from time-vested conversions, less assumed
share repurchases:
        
Previously granted LTIP awards, unvested 116
 82
 89
 46
Future LTIP awards 120
 53
 99
 31
Weighted-average common shares – diluted 120,529
 123,350
 121,458
 123,348
11.13. Segment Information
Columbia Property Trust establishes operating segments at the property level and aggregates individual properties into reportable segments for high-barrier-to-entry markets and other geographic locations in which Columbia Property Trust has significant investments. Columbia Property Trust considers geographic location when evaluating its portfolio composition and in assessing the ongoing operations and performance

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of its properties. As of September 30, 2017,2019, Columbia Property Trust had the following reportable segments:  New York, San Francisco, Atlanta, Washington, D.C., Atlanta, Boston, Los Angeles, and all other office markets. The all other office markets reportable segment consists of properties in similar low-barrier-to-entry geographic locations in which Columbia Property Trust does not have a substantial presence and does not plan to make further investments. During the periods presented, there have been no material inter-segmentintersegment 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 revenues. Operating revenues include rental income, tenant reimbursements, hotel income,lease revenues and other property income; and operating expenses include property and hotel operating costs. The NOI performance metric consists only 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 orAsset information and capital expenditures by reportable segment. Additionally, expenses, such as depreciationsegment are not reported because Columbia Property Trust does not use these measures to assess performance. Depreciation and amortization expense, along with other expense and others included in the reconciliationincome items, are not allocated among segments.
27
Table of GAAP net income to NOI, are reviewed by management on a consolidated basis, rather than by reportable segment.Contents

The following table presents operating revenues included in NOI by geographic reportable segment for Columbia Property Trust's respective ownership interests (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2019201820192018
New York(1)
$39,439  $37,990  $117,109  $119,248  
San Francisco(2)
27,866  26,548  83,650  76,156  
Washington, D.C.(3)
14,708  14,347  43,300  42,730  
Atlanta6,699  10,485  25,666  30,626  
Boston3,380  3,457  10,609  9,985  
Los Angeles1,996  1,962  5,857  5,792  
All other office markets3,947  3,941  11,769  11,782  
Total office segments98,035  98,730  297,960  296,319  
Corporate728  780  2,339  2,355  
Total operating revenues$98,763  $99,510  $300,299  $298,674  
 Three Months Ended September 30, Nine Months Ended September 30,
 2017 2016 2017 2016
New York(1)
$30,488
 $23,996
 $83,598
 $89,683
San Francisco(2)
25,337
 26,407
 80,112
 82,310
Atlanta9,401
 9,192
 28,239
 27,625
Washington, D.C.(3)
8,494
 7,689
 23,622
 25,602
Boston2,734
 2,879
 8,358
 8,782
Los Angeles1,899
 1,635
 5,534
 5,526
All other office markets2,772
 39,558
 17,219
 124,383
Total office segments81,125
 111,356
 246,682
 363,911
Hotel(24) 6,343
 1,199
 17,705
Corporate526
 48
 273
 430
Total operating revenues$81,627
 $117,747
 $248,154
 $382,046
(1)
Includes operating revenues for 49.5% of 114 Fifth Avenue based on our ownership interest, from July 6, 2017 through September 30, 2017, which are included in equity in income (loss) of unconsolidated joint ventures in the accompanying consolidated statements of operations.
(2)
Includes operating revenues for 100.0% of 333 Market Street and University Circle through July 5, 2017. Includes operating revenues for 77.5% of 333 Market Street and University Circle based on our ownership interest, from July 6, 2017 through September 30, 2017, which are included in equity in income (loss) of unconsolidated joint ventures in the accompanying consolidated statements of operations.
(3)
Includes operating revenues for 51.0% of the Market Square buildings based on our ownership interest, for all periods presented. 

(1)Includes operating revenues for one unconsolidated property, 114 Fifth Avenue, based on Columbia Property Trust's ownership interest: 49.5% for all periods presented.
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Table of Contents(2)Includes operating revenues for two unconsolidated properties, 333 Market Street and University Circle, based on Columbia Property Trust's ownership interests:  77.5% from January 1, 2018 through January 31, 2018; and 55.0% from February 1, 2018 through September 30, 2019.

(3)Includes operating revenues for two unconsolidated properties, Market Square and 1800 M Street, based on Columbia Property Trust's ownership interests: 51.0% for the Market Square and 55.0% for 1800 M Street for all periods presented.

The following table presents NOI by geographic reportable segment (in thousands):
 Three Months Ended September 30, Nine Months Ended September 30,
 2017 2016 2017 2016
New York(1)
$16,536
 $11,380
 $50,411
 $52,515
San Francisco(2)
18,166
 20,095
 57,733
 60,547
Atlanta8,500
 8,249
 25,078
 24,756
Washington, D.C.(3)
4,209
 3,632
 11,052
 13,303
Boston1,196
 1,425
 3,797
 4,111
Los Angeles1,155
 894
 3,439
 3,336
All other office markets4,071
 23,723
 15,598
 76,111
Total office segments53,833
 69,398
 167,108
 234,679
Hotel(24) 1,301
 (914) 3,171
Corporate(364) (59) (489) (137)
Total$53,445
 $70,640
 $165,705
 $237,713
(1)
Includes NOI for 49.5% of 114 Fifth Avenue based on our ownership interest, from July 6, 2017 through September 30, 2017, which is included in equity in income (loss) of unconsolidated joint ventures in the accompanying consolidated statements of income.
(2)
Includes NOI for 100.0% of 333 Market Street and University Circle through July 5, 2017. Includes NOI for 77.5% of 333 Market Street and University Circle based on our ownership interest, from July 6, 2017 through September 30, 2017, which is included in equity in income (loss) of unconsolidated joint ventures in the accompanying consolidated statements of income.
(3)
Includes NOI for 51.0% of the Market Square buildings based on our ownership interest, for all periods presented. 
A reconciliation of GAAP revenues to operating revenues is presented below (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2019201820192018
Total revenues$71,949  $73,340  $220,112  $222,420  
Operating revenues included in income from unconsolidated joint ventures(1)
28,728  27,995  85,868  81,656  
Less: asset and property management fee income(2)
(1,914) (1,825) (5,681) (5,402) 
Total operating revenues$98,763  $99,510  $300,299  $298,674  
 Three Months Ended September 30, Nine Months Ended September 30,
 2017 2016 2017 2016
Total revenues$60,362
 $113,266
 $217,375
 $367,775
Operating revenues included in income (loss) from unconsolidated joint ventures(1)
22,419
 4,992
 32,905
 15,926
Asset and property management fee income(2)
(1,154) (511) (2,126) (1,655)
Total operating revenues$81,627
 $117,747
 $248,154
 $382,046
(1)Columbia Property Trust records its interest in properties held through unconsolidated joint ventures using the equity method of accounting, and reflects its interest in the operating revenues of these properties in income from unconsolidated joint ventures in the accompanying consolidated statements of operations.
(2)See Note 11, Non-Lease Revenues, of the accompanying consolidated financial statements.


(1)
Columbia Property Trust records its interest in properties held through unconsolidated joint ventures using the equity method of accounting, and reflects its interest in the operating revenues of these properties in income (loss) from unconsolidated joint ventures in the accompanying consolidated statements of operations.
(2)
See Note 4, Unconsolidated Joint Ventures, of the accompanying consolidated financial statements.

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The following table presents NOI by geographic reportable segment (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2019201820192018
New York(1)
$23,235  $23,145  $69,721  $71,693  
San Francisco(2)
20,495  19,925  61,399  58,875  
Washington, D.C.(3)
8,475  8,844  25,514  25,976  
Atlanta5,640  9,245  19,935  27,083  
Boston1,700  1,890  5,564  5,203  
Los Angeles1,092  1,119  3,374  3,481  
All other office markets3,870  3,989  11,558  11,149  
Total office segments64,507  68,157  197,065  203,460  
Corporate(225) (204) (665) (599) 
Total NOI$64,282  $67,953  $196,400  $202,861  
(1)Includes NOI for two unconsolidated properties, 114 Fifth Avenue and 799 Broadway, based on Columbia Property Trust's ownership interest: 49.5% for 114 Fifth Avenue for all periods presented; and 49.7% for 799 Broadway from October 3, 2018 through September 30, 2019.
(2)Includes NOI for two unconsolidated properties, 333 Market Street and University Circle, based on Columbia Property Trust's ownership interests:  77.5% from January 1, 2018 through January 31, 2018; and 55.0% from February 1, 2018 through September 30, 2019.
(3)Includes NOI for two unconsolidated properties, Market Square and 1800 M Street, based on Columbia Property Trust's ownership interests: 51.0% for the Market Square and 55.0% for 1800 M Street for all periods presented.
A reconciliation of GAAP net income to NOI is presented below (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2019201820192018
Net income (loss)$(20,286) $6,429  $30,974  $4,488  
Asset and property management fee income(1,914) (1,825) (5,681) (5,402) 
Depreciation19,773  19,878  59,512  61,394  
Amortization7,485  7,920  22,052  24,559  
Impairment loss23,364  —  23,364  30,812  
General and administrative – corporate7,103  8,303  23,707  24,379  
General and administrative – unconsolidated joint ventures839  746  2,486  2,213  
Pre-acquisition costs2,437  —  2,437  —  
Net interest expense10,289  13,049  33,280  43,241  
Interest income from development authority bonds—  (1,800) —  (5,400) 
Gain on sale of unconsolidated joint venture interests—  —  —  (762) 
Gain on extinguishment of debt—  —  —  (23,713) 
Income tax expense2  3  18  16  
Adjustments included in income from unconsolidated joint ventures15,302  15,250  46,281  47,036  
Gain on sale of real estate assets(112) —  (42,030) —  
NOI$64,282  $67,953  $196,400  $202,861  

 Three Months Ended September 30, Nine Months Ended September 30,
 2017 2016 2017 2016
Net income$101,534
 $36,898
 $177,389
 $56,881
Depreciation18,501
 26,778
 60,529
 84,517
Amortization6,870
 11,895
 24,518
 42,902
General and administrative - corporate7,034
 7,467
 25,003
 25,718
General and administrative - joint ventures713
 —
 713
 —
Net interest expense13,690
 17,116
 42,040
 52,380
Interest income from development authority bonds(1,800) (1,800) (5,400) (5,400)
Loss on early extinguishment of debt280
 18,905
 325
 18,997
Income tax expense (benefit)3
 65
 (378) 387
Asset and property management fee income(1,154) (511) (2,126) (1,655)
Adjustments included in income (loss) from unconsolidated joint ventures10,139
 4,239
 18,610
 13,069
Gain on sales of real estate assets(102,365) (50,412) (175,518) (50,083)
NOI$53,445
 $70,640
 $165,705
 $237,713

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12.14.  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);
(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.
(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 Columbia Property Trust's consolidated financial statement totals. Management has concluded that the effect of this correction is not material to the consolidated financial statements. This change had the following impact to the condensed consolidating statement of cash flows for the nine months ended September 30, 2016:  increase to operating cash flows for the parent and issuer of $33.2 million and $102.4 million, respectively; and increase (decrease) in investing cash flows for the parent, issuer, and non-guarantors of $(172.8) million, $464.2 million and $482.1 million, respectively; and increase (decrease) in financing cash flows for the parent, issuer, and non-guarantors of $139.6 million, $(566.6) million and $(482.1) million, respectively. The impact to individual financial statement captions within the condensed consolidating statement of cash flows is footnoted below.
Set forth below are Columbia Property Trust's condensed consolidating balance sheets as of September 30, 20172019 and December 31, 2016,2018, as well as its condensed consolidating statements of operations and its condensed consolidating statements of comprehensive income for the three and nine months ended September 30, 20172019 and 2016;2018, and its condensed consolidating statements of cash flows for the nine months ended September 30, 20172019 and 2016.2018.


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Condensed Consolidating Balance Sheets (in thousands):
As of September 30, 2019
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$—  $—  $803,986  $—  $803,986  
Buildings and improvements, net—  1,420  1,592,315  —  1,593,735  
Intangible lease assets, net—  —  50,726  —  50,726  
Construction in progress—  —  33,663  —  33,663  
Total real estate assets—  1,420  2,480,690  —  2,482,110  
Operating lease assets1,746  —  27,964  —  29,710  
Investments in unconsolidated joint ventures—  1,058,570  —  —  1,058,570  
Cash and cash equivalents126,101  17,932  3,452  —  147,485  
Investment in subsidiaries2,431,291  970,695  —  (3,401,986) —  
Tenant receivables—  —  2,474  —  2,474  
Straight-line rent receivable—  —  87,076  —  87,076  
Prepaid expenses and other assets140,731  351,262  10,440  (469,029) 33,404  
Intangible lease origination costs, net—  —  23,517  —  23,517  
Deferred lease costs, net—  —  61,455  —  61,455  
Total assets$2,699,869  $2,399,879  $2,697,068  $(3,871,015) $3,925,801  
Liabilities:
Line of credit and notes payable, net$—  $447,763  $467,344  $(467,344) $447,763  
Bonds payable, net���  695,127  —  —  695,127  
Operating lease liabilities2,335  —  —  —  2,335  
Accounts payable, accrued expenses, and accrued capital expenditures—  16,825  36,456  —  53,281  
Due to affiliates—  —  1,685  (1,685) —  
Deferred income—  —  14,772  —  14,772  
Intangible lease liabilities, net—  —  14,989  —  14,989  
Total liabilities2,335  1,159,715  535,246  (469,029) 1,228,267  
Equity:
Total equity2,697,534  1,240,164  2,161,822  (3,401,986) 2,697,534  
Total liabilities and equity$2,699,869  $2,399,879  $2,697,068  $(3,871,015) $3,925,801  



31
 As of September 30, 2017
 
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$—
 $—
 $609,110
 $—
 $609,110
Buildings and improvements, net—
 58
 1,704,572
 —
 1,704,630
Intangible lease assets, net—
 —
 164,699
 —
 164,699
Construction in progress—
 —
 49,255
 —
 49,255
Total real estate assets—
 58
 2,527,636
 —
 2,527,694
Investment in unconsolidated joint ventures—
 698,105
 —
 —
 698,105
Cash and cash equivalents359,813
 16,800
 6,117
 —
 382,730
Investment in subsidiaries1,824,737
 1,007,852
 —
 (2,832,589) —
Tenant receivables, net of allowance—
 31
 2,783
 —
 2,814
Straight-line rent receivable—
 —
 80,128
 —
 80,128
Prepaid expenses and other assets369,358
 123,064
 15,735
 (432,355) 75,802
Intangible lease origination costs, net—
 —
 28,067
 —
 28,067
Deferred lease costs, net—
 —
 127,940
 —
 127,940
Investment in development authority bonds—
 —
 120,000
 —
 120,000
Total assets$2,553,908
 $1,845,910
 $2,908,406
 $(3,264,944) $4,043,280
Liabilities:         
Line of credit and notes payable, net$—
 $447,588
 $503,542
 $(430,763) $520,367
Bonds payable, net—
 693,562
 —
 —
 693,562
Accounts payable, accrued expenses, and accrued capital expenditures2
 11,049
 118,751
 —
 129,802
Due to affiliates—
 —
 1,592
 (1,592) —
Deferred income4
 81
 15,671
 —
 15,756
Intangible lease liabilities, net—
 —
 9,891
 —
 9,891
Obligations under capital lease—
 —
 120,000
 —
 120,000
Total liabilities6
 1,152,280
 769,447
 (432,355) 1,489,378
Equity:         
Total equity2,553,902
 693,630
 2,138,959
 (2,832,589) 2,553,902
Total liabilities and equity$2,553,908
 $1,845,910
 $2,908,406
 $(3,264,944) $4,043,280




Page 29
Table of Contents



Condensed Consolidating Balance Sheets (in thousands):
As of December 31, 2018
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$—  $—  $817,975  $—  $817,975  
Building and improvements, net—  1,739  1,908,302  —  1,910,041  
Intangible lease assets, net—  —  98,540  —  98,540  
Construction in progress—  —  33,800  —  33,800  
Total real estate assets—  1,739  2,858,617  —  2,860,356  
Investments in unconsolidated joint ventures—  1,071,353  —  —  1,071,353  
Cash and cash equivalents1,705  10,573  4,840  —  17,118  
Investment in subsidiaries2,622,528  1,236,982  —  (3,859,510) —  
Tenant receivables, net—  —  3,258  —  3,258  
Straight-line rent receivable—  —  87,159  —  87,159  
Prepaid expenses and other assets140,797  340,071  11,379  (469,029) 23,218  
Intangible lease origination costs, net—  —  34,092  —  34,092  
Deferred lease costs, net—  —  77,439  —  77,439  
Total assets$2,765,030  $2,660,718  $3,076,784  $(4,328,539) $4,173,993  
Liabilities:
Lines of credit and notes payable, net$—  $629,308  $467,344  $(467,344) $629,308  
Bonds payable, net—  694,538  —  —  694,538  
Accounts payable, accrued expenses, and accrued capital expenditures674  9,441  39,007  (5) 49,117  
Dividends payable23,340  —  —  —  23,340  
Due to affiliates—  —  1,680  (1,680) —  
Deferred income—  —  15,593  —  15,593  
Intangible lease liabilities, net—  —  21,081  —  21,081  
Total liabilities24,014  1,333,287  544,705  (469,029) 1,432,977  
Equity:
Total equity2,741,016  1,327,431  2,532,079  (3,859,510) 2,741,016  
Total liabilities and equity$2,765,030  $2,660,718  $3,076,784  $(4,328,539) $4,173,993  



32
 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 ventures—
 127,346
 —
 —
 127,346
Cash and cash equivalents174,420
 16,509
 25,156
 —
 216,085
Investment in subsidiaries2,047,922
 1,782,752
 —
 (3,830,674) —
Tenant receivables, net of allowance—
 —
 7,163
 —
 7,163
Straight-line rent receivable—
 —
 64,811
 —
 64,811
Prepaid expenses and other assets317,153
 262,216
 15,593
 (570,687) 24,275
Intangible lease origination costs, net—
 —
 54,279
 —
 54,279
Deferred lease costs, net—
 —
 125,799
 —
 125,799
Investment in development authority bonds—
 —
 120,000
 —
 120,000
Other assets held for sale, net—
 3,767
 41,814
 (52) 45,529
Total assets$2,539,495
 $2,227,765
 $3,933,946
 $(4,401,413) $4,299,793
Liabilities:         
Lines of credit and notes payable, net$—
 $447,643
 $704,585
 $(430,762) $721,466
Bonds payable, net—
 692,972
 —
 —
 692,972
Accounts payable, accrued expenses, and accrued capital expenditures—
 10,395
 120,633
 —
 131,028
Dividends payable36,727
 —
 —
 —
 36,727
Due to affiliates—
 58
 1,534
 (1,592) —
Deferred income—
 —
 19,694
 —
 19,694
Intangible lease liabilities, net—
 —
 33,375
 —
 33,375
Obligations under capital leases—
 —
 120,000
 —
 120,000
Liabilities held for sale—
 2,651
 177,497
 (138,385) 41,763
Total liabilities36,727
 1,153,719
 1,177,318
 (570,739) 1,797,025
Equity:         
Total equity2,502,768
 1,074,046
 2,756,628
 (3,830,674) 2,502,768
Total liabilities and equity$2,539,495
 $2,227,765
 $3,933,946
 $(4,401,413) $4,299,793




Page 30



Condensed Consolidating Statements of Operations (in thousands):
For the Three Months Ended September 30, 2019
Columbia Property Trust
(Parent)
(Guarantor)		Columbia
Property
Trust OP 
(the Issuer)		Non-
Guarantors		Consolidating
Adjustments		Columbia Property Trust
(Consolidated)
Revenues:
Lease revenues$—  $—  $68,963  $—  $68,963  
Asset and property management fee income958  —  956  —  1,914  
Other property income—  —  1,072  —  1,072  
958  —  70,991  —  71,949  
Expenses:
Property operating costs—  —  23,147  —  23,147  
Asset and property management fee expenses—  —  102  —  102  
Depreciation—  160  19,613  —  19,773  
Amortization—  —  7,485  —  7,485  
Impairment loss on real estate assets—  —  23,364  —  23,364  
General and administrative – corporate213  1,631  5,259  —  7,103  
General and administrative – unconsolidated joint ventures—  13  826  —  839  
Pre-acquisition costs—  2,437  —  —  2,437  
213  4,241  79,796  —  84,250  
Other Income (Expense):
Interest expense—  (10,289) (5,053) 5,053  (10,289) 
Interest and other income1,575  3,478  —  (5,053) —  
Income tax expense—  —  (2) —  (2) 
Income (loss) from unconsolidated entities(22,606) (9,559) (2) 34,361  2,194  
Gain on sale of real estate assets—  —  112  —  112  
(21,031) (16,370) (4,945) 34,361  (7,985) 
Net Income (Loss)$(20,286) $(20,611) $(13,750) $34,361  $(20,286) 
33
 For the Three Months Ended September 30, 2017
 
Columbia Property Trust
(Parent)
(Guarantor)
 
Columbia
 Property
Trust OP 
(the Issuer)
 
Non-
Guarantors
 
Consolidating
Adjustments
 Columbia Property Trust
(Consolidated)
Revenues:         
Rental income$—
 $—
 $55,113
 $(98) $55,015
Tenant reimbursements—
 7
 3,046
 —
 3,053
Asset and property management fee income569
 —
 585
 —
 1,154
Other property income—
 —
 1,140
 —
 1,140
 569
 7
 59,884
 (98) 60,362
Expenses:         
Property operating costs—
 113
 18,552
 (98) 18,567
Asset and property management fees—
 —
 188
 —
 188
Depreciation—
 310
 18,191
 —
 18,501
Amortization—
 —
 6,870
 —
 6,870
General and administrative - corporate39
 1,758
 5,237
 —
 7,034
General and administrative - unconsolidated joint ventures—
 —
 713
 —
 713
 39
 2,181
 49,751
 (98) 51,873
Real estate operating income (loss)530
 (2,174) 10,133
 —
 8,489
Other income (expense):         
Interest expense—
 (10,702) (8,803) 4,774
 (14,731)
Interest and other income4,593
 1,220
 1,802
 (4,774) 2,841
Loss on early extinguishment of debt—
 —
 (280) —
 (280)
 4,593
 (9,482) (7,281) —
 (12,170)
Income (loss) before income taxes and unconsolidated entities:5,123
 (11,656) 2,852
 —
 (3,681)
Income tax expense—
 (1) (2) —
 (3)
Income (loss) from unconsolidated entities96,411
 109,630
 (1) (203,187) 2,853
Income (loss) before sales of real estate assets:101,534

97,973

2,849

(203,187)
(831)
Gain on sales of real estate assets—
 —
 102,365
 —
 102,365
Net income$101,534

$97,973

$105,214

$(203,187)
$101,534

Page 31



Condensed Consolidating Statements of Operations (in thousands):
For the Three Months Ended September 30, 2018
Columbia Property Trust
(Parent)
(Guarantor)		Columbia
Property
Trust OP 
(the Issuer)		Non-
Guarantors		Consolidating
Adjustments		Columbia Property Trust
(Consolidated)
Revenues:
Lease revenues$—  $2  $69,735  $—  $69,737  
Asset and property management fee income915  —  910  —  1,825  
Other property income—  —  1,778  —  1,778  
915  2  72,423  —  73,340  
Expenses:
Property operating costs—  —  21,000  —  21,000  
Asset and property management fee expenses—  —  206  —  206  
Depreciation—  168  19,710  —  19,878  
Amortization—  —  7,920  —  7,920  
General and administrative – corporate192  2,594  5,517  —  8,303  
General and administrative – unconsolidated
joint ventures		—  —  746  —  746  
192  2,762  55,099  —  58,053  
Other Income (Expense):
Interest expense—  (10,905) (7,199) 5,053  (13,051) 
Interest and other income1,575  3,478  1,803  (5,053) 1,803  
Income tax expense—  —  (3) —  (3) 
Income (loss) from unconsolidated entities4,131  15,858  (3) (17,593) 2,393  
5,706  8,431  (5,402) (17,593) (8,858) 
Net Income$6,429  $5,671  $11,922  $(17,593) $6,429  
34
 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
Asset and property management fee income245
 —
 266
 —
 511
Other property income—
 —
 1,930
 (96) 1,834
 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 fee expenses:         
Related-party—
 40
 —
 (40) —
Other—
 —
 387
 —
 387
Depreciation—
 745
 26,033
 —
 26,778
Amortization—
 86
 11,809
 —
 11,895
General and administrative - corporate38
 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 income3,571
 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 (loss) before income taxes and unconsolidated entities:3,778
 (29,849) 14,559
 —
 (11,512)
Income tax expense—
 —
 (65) —
 (65)
Income from subsidiaries33,120
 61,442
 —
 (94,562) —
Loss from unconsolidated joint venture—
 (1,937) —
 —
 (1,937)
Income (loss) before sale of real estate assets:36,898
 29,656
 14,494
 (94,562) (13,514)
Gain on sale of real estate assets—
 —
 50,412
 —
 50,412
Net income$36,898
 $29,656
 $64,906
 $(94,562) $36,898

Page 32



Condensed Consolidating Statements of Operations (in thousands):
For the Nine Months Ended September 30, 2019
Columbia Property Trust
(Parent)
(Guarantor)		Columbia
Property
Trust OP 
(the Issuer)		Non-
Guarantors		Consolidating
Adjustments		Columbia Property Trust
(Consolidated)
Revenues:
Lease revenues$—  $—  $210,426  $—  $210,426  
Asset and property management fee income2,796  —  2,885  —  5,681  
Other property income—  —  4,005  —  4,005  
2,796  —  217,316  —  220,112  
Expenses:
Property operating costs—  —  69,970  —  69,970  
Asset and property management fee expenses—  —  521  —  521  
Depreciation—  493  59,019  —  59,512  
Amortization—  —  22,052  —  22,052  
Impairment loss on real estate assets—  —  23,364  —  23,364  
General and administrative – corporate611  6,196  16,900  —  23,707  
General and administrative – unconsolidated joint ventures—  29  2,457  —  2,486  
Pre-acquisition costs—  2,437  —  —  2,437  
611  9,155  194,283  —  204,049  
Other income (expense):
Interest expense—  (33,281) (15,159) 15,159  (33,281) 
Interest and other income4,725  10,434  1  (15,159) 1  
Income tax expense—  —  (18) —  (18) 
Income (loss) from unconsolidated entities24,064  62,977  (2) (80,860) 6,179  
Gain on sale of real estate assets—  —  42,030  —  42,030  
28,789  40,130  26,852  (80,860) 14,911  
Net income$30,974  $30,975  $49,885  $(80,860) $30,974  
35
 For the Nine Months Ended September 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
 $193,551
 $(293) $193,309
Tenant reimbursements—
 (59) 18,668
 —
 18,609
Hotel income—
 —
 1,339
 —
 1,339
Asset and property management fee income1,059
 —
 1,067
 —
 2,126
Other property income—
 —
 2,010
 (18) 1,992
 1,059
 (8) 216,635
 (311) 217,375
Expenses:         
Property operating costs—
 241
 64,555
 (293) 64,503
Hotel operating costs—
 —
 2,085
 —
 2,085
Asset and property management fee expenses:         
Related-party—
 3
 —
 (3) —
Other—
 —
 717
 —
 717
Depreciation—
 544
 59,985
 —
 60,529
Amortization—
 5
 24,513
 —
 24,518
General and administrative - corporate135
 7,013
 17,870
 (15) 25,003
General and administrative - unconsolidated joint ventures—
 —
 713
 —
 713
 135
 7,806
 170,438
 (311) 178,068
Real estate operating income (loss)924
 (7,814) 46,197
 —
 39,307
Other income (expense):         
Interest expense—
 (31,554) (27,935) 15,181
 (44,308)
Interest and other income12,923
 4,517
 5,409
 (15,181) 7,668
Loss on early extinguishment of debt—
 —
 (325) —
 (325)
 12,923
 (27,037) (22,851) —
 (36,965)
Income (loss) before income taxes, unconsolidated entities, and sales of
real estate:		13,847
 (34,851) 23,346
 —
 2,342
Income tax benefit (expense)—
 (1) 379
 —
 378
Income (loss) from unconsolidated entities163,542
 188,832
 —
 (353,223) (849)
Income before sales of real estate assets:177,389
 153,980
 23,725
 (353,223) 1,871
Gains on sales of real estate assets—
 11,050
 164,468
 —
 175,518
Net income$177,389
 $165,030
 $188,193
 $(353,223) $177,389





Page 33



Condensed Consolidating Statements of Operations (in thousands):
For the Nine Months Ended September 30, 2018
Columbia Property Trust
(Parent)
(Guarantor)		Columbia
Property
Trust OP 
(the Issuer)		Non-
Guarantors		Consolidating
Adjustments		Columbia Property Trust
(Consolidated)
Revenues:
Lease revenues$—  $2  $211,504  $—  $211,506  
Asset and property management fee income2,749  —  2,653  —  5,402  
Other property income—  —  5,512  —  5,512  
2,749  2  219,669  —  222,420  
Expenses:
Property operating costs—  —  66,512  —  66,512  
Asset and property management fee expenses—  —  619  —  619  
Depreciation—  500  60,894  —  61,394  
Amortization—  —  24,559  —  24,559  
Impairment loss on real estate—  —  30,812  —  30,812  
General and administrative – corporate582  7,412  16,385  —  24,379  
General and administrative – unconsolidated joint ventures—  —  2,213  —  2,213  
582  7,912  201,994  —  210,488  
Other income (expense):
Interest expense—  (35,322) (26,344) 18,406  (43,260) 
Gain (loss) on extinguishment of debt—  (326) 24,039  —  23,713  
Interest and other income7,972  10,434  5,420  (18,406) 5,420  
Gain on sale of unconsolidated joint venture interests—  762  —  —  762  
Income tax expense—  —  (16) —  (16) 
Income (loss) from unconsolidated entities(5,651) 26,521  —  (14,933) 5,937  
2,321  2,069  3,099  (14,933) (7,444) 
Net income (loss)$4,488  $(5,841) $20,774  $(14,933) $4,488  












36
 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)
Revenues:         
Rental income$—
 $2,669
 $278,330
 $(285) $280,714
Tenant reimbursements—
 1,421
 54,130
 —
 55,551
Hotel income—
 —
 17,484
 —
 17,484
Asset and property management fee income735
 —
 920
 —
 1,655
Other property income—
 —
 12,651
 (280) 12,371
 735
 4,090
 363,515
 (565) 367,775
Expenses:         
Property operating costs—
 2,360
 118,604
 (285) 120,679
Hotel operating costs—
 —
 14,315
 —
 14,315
Asset and property management fee expenses:         
Related-party—
 112
 —
 (112) —
Other—
 —
 1,058
 —
 1,058
Depreciation—
 2,166
 82,351
 —
 84,517
Amortization—
 239
 42,663
 —
 42,902
General and administrative - corporate116
 6,575
 19,195
 (168) 25,718
 116
 11,452
 278,186
 (565) 289,189
Real estate operating income (loss)619
 (7,362) 85,329
 —
 78,586
Other income (expense):         
Interest expense—
 (36,479) (38,071) 22,135
 (52,415)
Interest and other income10,680
 11,471
 5,436
 (22,135) 5,452
Loss on early extinguishment of debt—
 (18,987) (10) —
 (18,997)
 10,680
 (43,995) (32,645) —
 (65,960)
Income (loss) before income taxes, unconsolidated entities, and sales of
real estate:		11,299
 (51,357) 52,684
 —
 12,626
Income tax expense—
 (12) (375) —
 (387)
Income from unconsolidated entities45,582
 89,972
 —
 (135,554) —
Loss from unconsolidated joint venture—
 (5,441) —
 —
 (5,441)
Income before sales of real estate assets:56,881
 33,162
 52,309
 (135,554) 6,798
Gain on sales of real estate assets—
 —
 50,083
 —
 50,083
Net income$56,881
 $33,162
 $102,392
 $(135,554) $56,881












Page 34



Condensed Consolidating Statements of Comprehensive Income (in thousands):
For the Three Months Ended September 30, 2019
Columbia Property Trust
(Parent)
(Guarantor)		Columbia
Property
Trust OP 
(the Issuer)		Non-
Guarantors		Consolidating
Adjustments		Columbia Property Trust
(Consolidated)
Net loss$(20,286) $(20,611) $(13,750) $34,361  $(20,286) 
Market value adjustments to interest
rate swap		(3,068) (3,068) —  3,068  (3,068) 
Comprehensive loss$(23,354) $(23,679) $(13,750) $37,429  $(23,354) 

For the Three Months Ended September 30, 2018
Columbia Property Trust
(Parent)
(Guarantor)		Columbia
Property
Trust OP 
(the Issuer)		Non-
Guarantors		Consolidating
Adjustments		Columbia Property Trust
(Consolidated)
Net income$6,429  $5,671  $11,922  $(17,593) $6,429  
Market value adjustments to interest
rate swap		722  722  —  (722) 722  
Comprehensive income$7,151  $6,393  $11,922  $(18,315) $7,151  

For the Nine Months Ended September 30, 2019
Columbia Property Trust
(Parent)
(Guarantor)		Columbia
Property
Trust OP 
(the Issuer)		Non-
Guarantors		Consolidating
Adjustments		Columbia Property Trust
(Consolidated)
Net income$30,974  $30,975  $49,885  $(80,860) $30,974  
Market value adjustments to interest
rate swap		(7,103) (7,103) —  7,103  (7,103) 
Comprehensive income$23,871  $23,872  $49,885  $(73,757) $23,871  

For the Nine Months Ended September 30, 2018
Columbia Property Trust
(Parent)
(Guarantor)		Columbia
Property
Trust OP 
(the Issuer)		Non-
Guarantors		Consolidating
Adjustments		Columbia Property Trust
(Consolidated)
Net income (loss)$4,488  $(5,841) $20,774  $(14,933) $4,488  
Market value adjustments to interest
rate swap		4,174  4,174  —  (4,174) 4,174  
Comprehensive income (loss)$8,662  $(1,667) $20,774  $(19,107) $8,662  








37
 For the Three Months Ended September 30, 2017
 
Columbia Property Trust
(Parent)
(Guarantor)
 
Columbia
Property
Trust OP 
(the Issuer)
 
Non-
Guarantors
 
Consolidating
Adjustments
 Columbia Property Trust
(Consolidated)
Net income$101,534
 $97,973
 $105,214
 $(203,187) $101,534
Market value adjustments to interest
rate swaps
148
 148
 —
 (148) 148
Comprehensive income$101,682
 $98,121
 $105,214
 $(203,335) $101,682
 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 Nine Months Ended September 30, 2017
 
Columbia Property Trust
(Parent)
(Guarantor)
 
Columbia
Property
Trust OP 
(the Issuer)
 
Non-
Guarantors
 
Consolidating
Adjustments
 Columbia Property Trust
(Consolidated)
Net income$177,389
 $165,030
 $188,193
 $(353,223) $177,389
Market value adjustments to interest
rate swaps
146
 146
 —
 (146) 146
Comprehensive income$177,535
 $165,176
 $188,193
 $(353,369) $177,535
 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 (loss)$51,252
 $27,533
 $102,392
 $(129,925) $51,252







Page 35



Condensed Consolidating Statements of Cash Flows (in thousands):
For the Nine Months Ended September 30, 2019
Columbia Property Trust
(Parent)
(Guarantor)		Columbia Property Trust OP
(the Issuer)		Non-
Guarantors		Consolidating AdjustmentsColumbia Property Trust
(Consolidated)
Cash flows from operating activities$33,072  $31,084  $120,768  $(80,860) $104,064  
Cash flows from investing activities:
Net proceeds from the sale of real estate—  —  375,004  —  375,004  
Investment in real estate and related assets(14,815) —  (54,366) —  (69,181) 
Investments in unconsolidated joint ventures—  (12,741) —  —  (12,741) 
Distributions from unconsolidated joint ventures—  11,264  —  —  11,264  
Distributions from subsidiaries202,020  384,877  —  (586,897) —  
Net cash provided by investing activities187,205  383,400  320,638  (586,897) 304,346  
Cash flows from financing activities:
Borrowings, net of fees—  149,838  —  —  149,838  
Repayments—  (332,000) —  —  (332,000) 
Distributions(93,480) (224,963) (442,794) 667,757  (93,480) 
Redemptions of common stock(2,401) —  —  —  (2,401) 
Net cash used in financing activities(95,881) (407,125) (442,794) 667,757  (278,043) 
Net increase (decrease) in cash and cash equivalents124,396  7,359  (1,388) —  130,367  
Cash and cash equivalents, beginning
of period		1,705  10,573  4,840  —  17,118  
Cash and cash equivalents, end of period$126,101  $17,932  $3,452  $—  $147,485  

38
 For the Nine Months Ended September 30, 2017
 
Columbia Property Trust
(Parent)
(Guarantor)
 
Columbia Property Trust OP
(the Issuer)
 
Non-
Guarantors
 Eliminations Columbia Property Trust
(Consolidated)
Cash flows from operating activities$168,209
 $151,932
 $80,195
 $(353,221) $47,115
Cash flows from investing activities:         
Net proceeds from sale of real estate—
 49,531
 688,100
 —
 737,631
Investment in real estate and related assets(52,000) (630) (72,829) —
 (125,459)
Investment in unconsolidated joint ventures—
 (123,149) —
 —
 (123,149)
Distributions from unconsolidated joint ventures—
 1,411
 —
 —
 1,411
Distributions from subsidiaries237,835
 330,939
 —
 (568,774) —
Net cash provided by investing activities185,835
 258,102
 615,271
 (568,774) 490,434
Cash flows from financing activities:         
Borrowings, net of fees—
 (628) —
 —
 (628)
Repayments—
 —
 (201,625) —
 (201,625)
Distributions(109,561) (409,115) (512,880) 921,995
 (109,561)
Repurchases of common stock(59,090) —
 —
 —
 (59,090)
Net cash used in financing activities(168,651) (409,743) (714,505) 921,995
 (370,904)
Net increase (decrease) in cash and cash equivalents185,393
 291
 (19,039) —
 166,645
Cash and cash equivalents, beginning
of period
174,420
 16,509
 25,156
 —
 216,085
Cash and cash equivalents, end of period$359,813
 $16,800
 $6,117
 $—
 $382,730


Page 36



Condensed Consolidating Statements of Cash Flows (in thousands):
For the Nine Months Ended September 30, 2018
Columbia Property Trust
(Parent)
(Guarantor)		Columbia Property Trust OP
(the Issuer)		Non-
Guarantors		Consolidating AdjustmentsColumbia Property Trust
(Consolidated)
Cash flows from operating activities$2,167  $2,522  $77,122  $(20,774) $61,037  
Cash flows from investing activities:
Net proceeds from the sale of real estate—  —  284,608  —  284,608  
Net proceeds from sale of investments in unconsolidated joint ventures—  235,083  —  —  235,083  
Investment in real estate and related assets(7,300) (51) (69,015) —  (76,366) 
Investments in unconsolidated joint ventures—  (4,432) —  —  (4,432) 
Distributions from unconsolidated joint ventures—  10,549  —  —  10,549  
Distributions from subsidiaries143,562  266,276  —  (409,838) —  
Net cash provided by investing activities136,262  507,425  215,593  (409,838) 449,442  
Cash flows from financing activities:
Borrowings, net of fees—  185,846  —  —  185,846  
Repayments—  (549,000) (2,476) —  (551,476) 
Distributions(95,056) (141,774) (288,838) 430,612  (95,056) 
Redemptions of common stock(43,764) —  —  —  (43,764) 
Net cash used in financing activities(138,820) (504,928) (291,314) 430,612  (504,450) 
Net increase (decrease) in cash and cash equivalents(391) 5,019  1,401  —  6,029  
Cash and cash equivalents, beginning
of period		692  5,079  3,796  —  9,567  
Cash and cash equivalents, end of period$301  $10,098  $5,197  $—  $15,596  



39
 For the Nine Months Ended September 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$33,797
 $63,440
 $188,021
 $(135,554) $149,704
Cash flows from investing activities:         
Net proceeds from sales of real estate(1)
—
 —
 482,089
 —
 482,089
Investment in real estate and related assets—
 (1,552) (52,608) —
 (54,160)
Investment in unconsolidated joint ventures—
 (12,351) —
 —
 (12,351)
Distributions from subsidiaries(2)
309,308
 464,171
 —
 (773,479) —
Net cash provided by investing activities309,308
 450,268
 429,481

(773,479) 415,578
Cash flows from financing activities:         
Debt prepayment and interest rate swap settlement costs paid(3)
—
 (17,921) —
 —
 (17,921)
Borrowings, net of fees(4)
—
 780,580
 —
 —
 780,580
Repayments(5)
—
 (952,000) (43,070) —
 (995,070)
Distributions(6)
(148,474) (329,993) (579,040) 909,033
 (148,474)
Repurchases of common stock(26,186) —
 —
 —
 (26,186)
Net cash used in financing activities(174,660) (519,334) (622,110)
909,033
 (407,071)
Net increase (decrease) in cash and cash equivalents168,445
 (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
(1)
Net proceeds from sales of real estate increased (decreased) by $(482.1) million and $482.1 million for the parent and non-guarantors, respectively.
(2)
Distributions from subsidiaries increased (decreased) by $309.3 million, $464.2 million, and $(773.5) million for the parent, issuer, and eliminations, respectively.
(3)
Debt prepayments and interest rate swap settlement costs paid increased (decreased) by $17.9 million and $(17.9) million for the parent and issuer, respectively.
(4)
Borrowings, net of fees increased (decreased) by $(348.7) million and $348.7 million for the parent and issuer, respectively.
(5)
Repayments increased (decreased) by $250.0 million and $(250.0) million for the parent and issuer, respectively.
(6)
Distributions (increased) decreased by $(330.0) million, $(579.0) million, and $909.0 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 37

13.15.  Subsequent Events
Columbia Property Trust has evaluated subsequent events in connection with the preparation of the consolidated financial statements and notes thereto included in this report on Form 10-Q, and noted the following in additionsubsequent event:
On October 16, 2019, Columbia Property Trust entered into a contribution agreement (the "Contribution Agreement") to those disclosed elsewhere in this report:
Acquisition of 245-249 West 17th Street & 218 West 18th Street, as described in Note 3, acquire Normandy Real Estate Transactions;Management, LLC, a developer, operator, and investment manager of office and mixed-use assets in New York, Boston, and Washington, D.C. for approximately $100.0 million, exclusive of transaction and closing costs (the "Purchase Price"). The Contribution Agreement contains certain customary representations, warranties, covenants, indemnities, and termination rights for a transaction of this nature. This transaction is expected to close in 2019, pending the completion of customary closing conditions.
The Purchase Price will be comprised of two components: an approximately $13.5 million cash payment, and the issuance of 3,264,151 Series A Convertible, Perpetual Preferred Units at a strike price of $26.50 per share (the "Preferred OP Units") of Columbia Property Trust OP at the Closing. The Preferred OP Units will be convertible into newly issued common units of Columbia Property Trust OP, which are convertible into shares of Columbia Property Trust's common stock, subject to certain terms and conditions.
Acquisition of investment in 1800 M Street through a joint venture, as described in Note 3, Real Estate Transactions.
40


Page 38

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
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 20162018 Form 10-K.

Executive Summary
OurIn October 2019, we entered an agreement to acquire Normandy Real Estate Management, a leading developer, operator, and investment manager of office and mixed-use assets in New York; Boston; and Washington, D.C. We will acquire Normandy's vertically integrated operating platform and its general partner interests in three active management funds in a cash and equity transaction with a total value of approximately $100 million, exclusive of transaction and closing costs. The acquisition will expand our current platform by strengthening our sourcing, construction, and other key capabilities, as well as by adding a full development arm and creating a complementary fund program. We believe it will also result in greater access to capital through Normandy's joint venture partner relationships and augment our growth strategy through Normandy's development platform and pipeline of value-add projects.
The acquisition of Normandy furthers our primary strategic objective is to generate long-term shareholderstockholder returns from a combination of growing cash flows and appreciation in the values of our properties, by owning and operating high-quality office properties principally located in certain high-barrier-to-entry markets. We concentrate onOur approach is to own office buildings that are competitive within the top tier of their markets or that will be repositioned as such through value-add initiatives. In addition, ourOur investment objectives include optimizing our portfolio allocation between stabilized investments and more growth-oriented, value-add investments and development projects with an emphasis on central business districts and multi-tenant buildings.
We recently completedOver the past several years, we have undertaken a multi-year capital recycling program that involved selling more than 50 properties in geographically dispersed markets for aggregate proceeds of $3.6$4.2 billion, and reinvestedincluding the following recent transactions:
•In September 2019, we sold Lindbergh Center in Atlanta for a gross sales price of $187.0 million.
•In April 2019, we sold One & Three Glenlake Parkway also in Atlanta for a gross sale price of $227.5 million.
•In October 2018, we acquired a 49.7% interest in a joint venture that will develop a 12-story, 182,000-square-foot office building at 799 Broadway in New York.
•In May 2018, we sold 222 East 41st Street in New York, San Francisco, Washington, D.C., and Boston. Duringafter re-leasing the second halfproperty to a single tenant for 30 years, for a gross sale price of 2017,$332.5 million. 
In March 2019, we executed the following transactions:
On July 6, 2017, we formedentered into a strategic partnershipcontract with Allianza joint venture partner to increase our scale in key markets onpurchase a leverage-neutral basis. We consummated the partnership by simultaneously selling partial interests in two of our San Francisco properties, 333 Market Street and University Circle, to Allianz for $234.0 million, and by acquiring a partial interest in 114 Fifth Avenue in Manhattan from Allianz for $108.9 million. 
On October 11, 2017, we acquired a 55% interest in 1800 M Street, a 10-story16-story, 235,000-square-foot office building in Washington, D.C.,Manhattan for $231.6 million through a joint venture with Allianz.
On October 11, 2017, we acquired 245-249 West 17th Street, two interconnected 12- and 6-story towers totaling 281,000 square feet of office and retail space, and 218 West 18th Street, a 12-story, 166,000-square-foot office building, in New York for $514.1 million.
We are also under contract to purchase 149 Madison Avenue in New York, a 12-story, 127,000-square-foot office building,full-scale redevelopment project, with closing expected later this year, and planin late 2019. We are continuing to fully redevelop this property as modern boutique office space. We will continue toactively pursue additional strategic investment opportunities in our target markets, including additional joint investments with Allianz, as well asand selective property dispositions.dispositions in non-target markets.
Leasing continues to be a key area of focus for both vacant space and upcoming expirations. Through the first nine months of 2017, we haveOur portfolio is 96.9% leased, 783,000 square feet of space and addressed somewith less than 1% of our most significant near-term expirations and vacancies:
At University Circle, we executed a 5-year, 119,000-square-foot lease renewal with DLA Piper in Septemberleases scheduled to extendexpire the lease to June 2023 and address our most significant 2018 expiration. At 650 California Street, we executed an eight-year, 86,000-square-foot lease with Affirm in April; a 22,000-square-foot renewal and expansion with an existing tenant in April;remainder of this year and a 12-year, 61,000-square-foot lease with WeWorksubstantial majority of our revenues generated from properties in February.
In New York, 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 to 2027; and at 315 Park Avenue South, executed a 17,000-square-foot lease expansion with Bustle Media Group.
In Atlanta, at One Glenlake, we executed a 10-year, 66,000-square-foot lease 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 quarter end.
our high-barrier target markets. We continue to maintain a strong and flexible balance sheet with an emphasis onsheet. In December 2018, we amended and restated our $500 million unsecured borrowings, with weighted-averagerevolving credit facility and $300 million unsecured term loan, resulting in a $950 million combined credit facility. The amended and restated facility extended maturities, lowered interest costs, and increased the Revolving Credit Facility from $500 million to $650 million. Further, the new $300 million term loan is currently undrawn and includes a delayed-draw feature, which allows for us to fully draw the term loan by December 7, 2019. As of 6.2 yearsSeptember 30, 2019, our debt-to-real-estate-asset ratio is 31.6%(1)(2); 90.7%(1), weighted-average of our portfolio is unencumbered by mortgages; and our weighted average cost of borrowing of 3.63%during the quarter is 3.82%(1) per annum,annum. Our debt maturities are laddered, coming due in two to seven years, and an unencumbered pool$450.0 million of assets as a percentage of gross real estate assets of 91%(1). Our stock repurchase program allows usour unsecured borrowings can be repaid prior to take advantage of market opportunities frommaturity without penalty.
From time to time when we believe our stock is undervalued. In the third quarterundervalued, we may take advantage of 2017, we repurchased $30.1 million of our common stock (1.4 million shares at an average price of $21.02 per share). To date, undermarket opportunities by using our stock repurchase programs, we have repurchased an aggregateprogram to buy shares and return capital to our stockholders. As of $121.4September 30, 2019, $200.0 million remains available under our current repurchase program.
(1)Statistics include our ownership interest in the gross real estate assets and debt at properties held through unconsolidated joint ventures as described in Note 4, Unconsolidated Joint Ventures, of common stock at an average price of $21.85 per share.the accompanying financial statements.
(2)On a net basis (i.e., reduced for cash on hand), our debt-to-real-estate-asset ratio is 27.7%.
(1)
Statistics include our ownership interest in the gross real estate assets and debt at properties held through unconsolidated joint ventures as described in Note 4, Unconsolidated Joint Ventures, of the accompanying financial statements; and exclude the 263 Shuman mortgage note, which expired in July 2017. We are in the process of transferring the property to the lender.

Page 39
41

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 criticalkey drivers of our lease income. Over the last year, our quarter-end averageOur portfolio percentagewas 96.9% leased ranged from 90.6% at December 31, 2016 to 95.1% atas of September 30, 2017.2019, and 97.3% leased as of September 30, 2018. The following table sets forth details related to the financial impact of our recent leasing activities which drive changesfor properties we own directly and based on our proportionate share of properties owned through unconsolidated joint ventures:
Three Months Ended September 30,Nine Months Ended September 30,
2019201820192018
Total number of leases12  17  38  44  
Square feet of leasing – renewal
144,418  230,045  155,553  270,821  
Square feet of leasing – new
39,350  174,981  156,362  386,693  
Total square feet of leasing183,768  405,026  311,915  657,514  
Lease term (months)105  119  108  111  
Tenant improvements, per square foot – renewal
$69.68  $14.25  $70.92  $14.05  
Tenant improvements, per square foot – new
$66.79  $76.20  $90.94  $69.08  
Tenant improvements, per square foot – all leases
$69.28  $65.95  $80.77  $63.48  
Leasing commissions, per square foot – renewal
$27.95  $11.48  $28.09  $10.50  
Leasing commissions, per square foot – new
$21.78  $22.84  $46.82  $26.10  
Leasing commissions, per square foot – all leases
$27.09  $20.96  $37.32  $24.51  
Rent leasing spread – renewal(1)
79.6 %5.2 %75.4 %5.8 %
Rent leasing spread – new(1)
54.3 %21.8 %67.3 %29.8 %
Rent leasing spread – all leases(1)
77.0 %19.0 %73.3 %26.8 %
(1)Rent leasing spreads are calculated based on the change in ourbase rental revenues:income measured on a straight-line basis; and, for new leases, only include space that has been vacant for less than one year.
 Three Months Ended September 30, Nine Months Ended September 30,
 2017 2016 2017 2016
Total number of leases11
 11
 46
 32
Square feet of leasing – renewal(1)
109,979
 92,625
 314,915
 253,099
Square feet of leasing – new(1)
41,236
 34,388
 430,565
 530,653
Total square feet of leasing151,215
 127,013
 745,480
 783,752
Lease term (months)74
 82
 98
 341
Tenant improvements, per square foot – renewal
$32.31
 $50.85
 $40.58
 $38.66
Tenant improvements, per square foot – new
$73.62
 $31.36
 $82.62
 $168.18
Tenant improvements, per square foot – all leases
$43.84
 $44.59
 $68.73
 $161.51
Leasing commissions, per square foot – renewal
$12.49
 $16.98
 $13.81
 $13.88
Leasing commissions, per square foot – new
$31.77
 $24.07
 $21.80
 $43.70
Leasing commissions, per square foot – all leases
$17.87
 $19.25
 $19.16
 $42.16
        
Rent leasing spread – renewal(2)
117.3% 26.3% 85.1% 25.8%
Rent leasing spread – new(3)
79.3% n/a
 121.9% 18.9%
Rent leasing spread – all leases(2)(3)
106.9% 26.3% 103.5% 19.2%
(1)
Includes our proportionate share of renewal and new leasing at properties owned through unconsolidated joint ventures.
(2)
Rent leasing spreads for renewal leases are calculated based on the change in base rental income measured on a straight-line basis.
(3)
Rent leasing spreads for new leases are calculated only for space that has been vacant less than one year, and are measured on a straight-line basis.
In 2017,2019, rent leasing spreads have been significantlywere positive (106.9%(77.0% and 103.5%73.3% for the three-three and nine-month periodnine months ended September 30, 2017,2019, respectively) dueprimarily related to extending the 119,000-square-foota 29,500-square-foot office lease with DLA Piperrenewal at University Circle218 West 18th Street in San FranciscoNew York and leasing 205,000 square feeta new 15,200-square-foot lease at 650 California Street in San Francisco to several tenants. The leasing at 650 California Street has required significant tenant improvements; however, the net economic impact of leasing at 650 California Street is favorable.Francisco. In 2016,2018, rent leasing spreads were positive (26.3%(19.0% and 19.2%26.8% for the three-three and nine- month periodnine months ended September 30, 2016) and tenant improvements per square foot were higher2018, respectively) primarily due to a 390,000-square-foot, 30-year lease expansions of 59,000 square feet and 140,000 square feet at our 222 East 41st Street Property and a 130,000-square-foot lease renewal at our SanTan Corporate Center propertyOne & Three Glenlake Parkway in Phoenix, Arizona.Atlanta, which was sold in April 2019. Over the next 12 months, approximately 95,000151,000 square feet of leases at our operating properties (approximately 1.9%3.2% of our portfolio, based on revenues) are scheduled to expire.
42

Liquidity and Capital Resources
Overview
Cash flows generated from the operation of our properties are primarily used to fund recurring expenditures and stockholder dividends. The amount of distributions to common stockholders is determined by our board of directors and is dependent upon a number of factors, including funds deemed available for distribution based principally on our current and future projected operating cash flows, reduced by capital requirements necessary to maintain our existing portfolio. In determining the amount of distributions to common stockholders, we also considerportfolio, our future capital needs, and future sources of liquidity, as well as the annual distribution requirements necessary to maintain our status as a REIT under the Code. 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, ourOur board of directors elected to reduce the quarterly stockholder distribution rate from $0.30 per share tomaintain a $0.20 per share, and maintained thisdividend rate for the second and third quartersquarter 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.2019.

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Short-termShort-Term Liquidity and Capital Resources
During the first nine months ended September 30, 2017,of 2019, we generated net cash flows from operating activities of $47.1$104.1 million, which consistedconsists primarily of receipts from tenants for rent and reimbursements, reduced by payments for operating costs, administrative expenses, interest expense, and interest expense.lease inducements. During the same period, we paid total distributions to stockholders of $109.6$93.5 million, which included dividend payments for threefour quarters ($36.723.3 million for the fourth quarter of 20162018 and an aggregate of $72.9$70.2 million for the first three quarters of 2017)2019).
During the first nine months ended September 30, 2017,of 2019, we sold five wholly owned propertiesreceived $375.0 million in net sales proceeds from the sale of Lindbergh Center and partial interests in two additional properties for netOne & Three Glenlake Parkway. These proceeds of $737.6 million. Wewere used these proceeds to fund the early repayment$182.0 million of mortgage notes of $201.6 million, the purchase of an interest in 114 Fifth Avenue for $112.5 million, deposits of $52.0 million for acquisitions,net repayments on our Revolving Credit Facility; leasing and capital projects, including those at our joint ventures, of $84.1$67.1 million; and an earnest money deposit of $13.7 million, and share repurchases of $59.1 million. In October 2017, we reinvested the remaining proceeds in 245-249 West 17th Street and 218 West 18th Streetrelated to a joint venture that will redevelop a property in New York and an interest in 1800 M Street in Washington, D.C., as described in Note 3, Real Estate Transactions, of the accompanying consolidated financial statements.York.
Over the short-term,short term, we expect our primary sources of capital and liquidity to be operating cash flows, additional proceeds from our joint ventures with Allianz,select property dispositions, and future debt financings.debt. We expect that our principal demands for funds will be property acquisitions, development and redevelopment costs, capital improvements to our existing portfolio, stockholder distributions, stock repurchases, stockholder distributions, operating expenses, and interest and principal payments on current and maturing debt.payments. As of October 23, 2017, after closing on the acquisitions of 245-249 West 17th Street and 218 West 18th Street in New York and an interest in 1800 M Street in Washington, D.C.,21, 2019, we have access to $140.0$493.0 million under our Revolving Credit Facility.Facility and $300.0 million under our delayed-draw term loan. We believe that we will have adequate liquidity and capital resources to meet our current obligations as they come due. We are in the process of evaluating various options for refinancing our line of credit borrowings.
Long-termLong-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.dispositions, and borrowing proceeds. We expect that our primary uses of capital will continue to include stockholder distributions; acquisitions; development and redevelopment costs; capital expenditures, such as building improvements, tenant improvements, and leasing costs; and repaying or refinancing debt.
Consistent with our financing objectives and operational strategy over the long term, we continue to maintain nethave generally maintained debt levels historicallyof less than 40% of the undepreciated costcosts of our assets over the long term.assets. As of September 30, 2017,2019, our net-debt-to-real-estate-assetdebt-to-real-estate-asset ratio was approximately 25.5%31.6% on a gross basis, and approximately 27.7% on a net basis (i.e., whichreduced for cash on hand). As of September 30, 2019, we held the majority of the net proceeds received from the September 26, 2019 sale of Lindbergh Center in cash. Our debt-to-real-estate-asset ratio includes our 51%share of joint venture real estate assets and debt, as well as basis adjustments related to joint venture real estate assets.
As described below, our variable-rate indebtedness uses LIBOR, which is currently expected to be discontinued after 2021, as a benchmark for establishing the interest rate. Our Revolving Credit Facility and our term loans provide that, in the debtevent that LIBOR is discontinued, the borrower and real estatelender shall endeavor to establish an alternate index rate that gives due consideration to the then-prevailing market convention for determining interest rates on syndicated loans. Our interest rate swaps use the International Swaps and Derivatives Association ("ISDA") Master Agreement form. ISDA is expected to amend this Master Agreement form to address the transition from LIBOR to an alternate reference rate, and we expect to amend our interest rate swap contracts accordingly.
There can be no assurances as to what alternative base rates may be or whether such base rate will be more or less favorable than LIBOR. There is also the possibility of other unforeseen impacts of the Market Square Joint Venture. Our net-debt-to-real-estate-asset ratio is calculated usingpotential discontinuation of LIBOR. We will continue to monitor LIBOR reform developments, and to work with our debt balance, netlenders and interest rate swap counterparties to ensure that any transition away from LIBOR will have minimal impact on our financial condition; however, we can provide no assurances regarding the impact of cash on hand, and real estate at cost.the discontinuation of LIBOR.
Revolving Credit Facility
The
43

Unsecured Bank Debt
Our Revolving Credit Facility has a capacity of $500.0$650.0 million and matures in July 2019,January 2023, with two six-month extension options. As of September 30, 2017,2019, we had no$300.0 million in outstanding borrowings on the Revolving Credit Facility. After acquisitions that have closed since September 30, 2017, as described in Note 3, Real Estate Transactions, to the accompanying consolidated financial statements, we have outstanding borrowings of $360.0 million on our Revolving Credit Facility as of October 23, 2017. Amounts outstanding under the Revolving Credit Facility bear interest at either (i) LIBOR, plus an applicable margin ranging from 0.875%0.775% to 1.55%1.45% for LIBOR borrowings, or (ii) an alternate base rate, plus an applicable margin ranging from 0.00% to 0.55%0.45% for base-ratebase rate borrowings, based on our applicable credit rating. The per-annumper annum facility fee on the aggregate revolving commitment (used or unused) ranges from 0.125% to 0.30%, also based on our applicable credit rating. Additionally, we have the ability to increase the capacity of the Revolving Credit Facility, along with the $300 Million Term Loan, whichas described below, provides for four accordion options for an aggregate additional amount of up to $400$500 million, subject to certain limitations.
Term Loans
TheOur $300 Million Term Loan matures in July 2020January 2024 and along withbears interest, at our option, at either (i) LIBOR, plus an applicable margin ranging from 0.85% to 1.65% for LIBOR loans, or (ii) an alternate base rate, plus an applicable margin ranging from 0.00% to 0.65% for base rate loans, based on our applicable credit rating. The per annum facility fee on the Revolving Credit Facility, provides for four accordion options for an aggregate amount of upterm loan commitment (used or unused) ranges from 0.125% to $400 million, subject to certain conditions.0.30%, also based on our applicable credit rating. The $300 Million Term Loan includes a delayed-draw feature, which allows us until December 7, 2019 to fully draw the term loan. As of September 30, 2019, the $300 million term loan remained undrawn. Columbia Property Trust has entered into a $300.0 million interest rate swap agreement to effectively fix the interest rate on the $300 Million Term Loan at 2.55% (LIBOR, as defined, plus 100 basis points). Until the $300 Million Term Loan is drawn, the interest rate swap has been temporarily assigned to reduce the interest rate on borrowings under the Revolving Credit Facility.
Our $150.0 million unsecured term loan matures in July 2022 (the "$150 Million Term Loan") and bears interest, at our option, at either (i) LIBOR, plus an applicable margin ranging from 0.90% to 1.75% for LIBOR loans, or (ii) an alternatealternative 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 matures in July 2022 (the "$150 Million Term Loan"). The $150 Million Term Loan incurred 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. The interest rate on the $150 Million Term Loan is effectively fixed at 3.07% with an interest rate swap agreement, on the LIBOR component of the rate, which is designated as a cash flow hedge.

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Based on the terms of the interest rate swap and our current credit rating, the interest rate on the $150 Million Term Loan is effectively fixed at 3.07%.
Bonds Payable
In August 2016, we issued $350.0 million of 10-year unsecured 3.650% senior notes at 99.626% of their face value. We received proceeds from the 2026 Bonds Payable, net of fees, of $346.4 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 10-year unsecured 4.150% senior notes at 99.859% of their face value. 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 mortgage debt, theThe $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 30, 2017.2019. We expect to continue to be able to meet the requirements of our debt covenants over the next 12 months.
44

Contractual Commitments and Contingencies
As of September 30, 2017,2019, our contractual obligations will become payable in the following periods (in thousands):
Contractual ObligationsTotal20192020-20212022-2023Thereafter
Debt obligations(1)
$1,369,630  $—  $53,880  $615,750  $700,000  
Interest obligations on debt(1)(2)
245,106  12,759  101,221  77,838  53,288  
Operating lease obligations(3)
1,172,423  1,660  13,368  13,483  1,143,912  
Total$2,787,159  $14,419  $168,469  $707,071  $1,897,200  
(1)Includes our ownership share of the debt and interest obligations for the Market Square Joint Venture and the 799 Broadway Joint Venture, which we own through unconsolidated joint ventures. The Market Square Joint Venture has a $325.0 million mortgage loan on the Market Square Buildings, which bears interest at 5.07% and matures on July 1, 2023. We own a 51% interest in the Market Square Joint Venture. The 799 Broadway Joint Venture has $108.4 million outstanding on a construction loan, which has a total capacity of $187.0 million; bears interest at LIBOR, capped at 4.00%, plus a spread of 425 basis points; and matures on October 9, 2021. We own a 49.7% interest in the 799 Broadway Joint Venture. As of September 30, 2019, under the 799 Broadway construction loan agreement, we guarantee equity contributions of $19.8 million to be made to the joint venture (see Note 7, Commitments and Contingencies, of the accompanying consolidated financial statements).
(2)Interest obligations on variable-rate debt are measured at the rate at which they are effectively fixed with interest rate swap agreements (where applicable) or the rate in effect as of September 30, 2019. Interest obligations on all other debt instruments 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)These obligations are related to ground leases at certain properties, including 49.5% of the ground lease obligation at 114 Fifth Avenue, based on our ownership interest in the unconsolidated joint venture that owns that property, as well as our corporate office lease. See Note 10, Leases, of the accompanying consolidated financial statements for additional information. 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.

Contractual Obligations Total 2017 2018-2019 2020-2021 Thereafter
Debt obligations(1)
 $1,388,728
 $49,802
(2) 
 $23,176
 $300,000
 $1,015,750
Interest obligations on debt(1)(3)
 315,748
 12,157
  95,752
 84,660
 123,179
Capital lease obligations(4)
 120,000
 —
  —
 120,000
 —
Operating lease obligations(5)
 206,461
 661
  5,342
 5,342
 195,116
Total $2,030,937
 $62,620
  $124,270
 $510,002
 $1,334,045
(1)
Includes 51% of the debt and interest obligations for the Market Square Joint Venture, which we own through an unconsolidated joint venture. The Market Square Joint Venture holds a $325 million mortgage note on the Market Square Buildings, bearing interest at 5.07% and maturing on July 1, 2023. As of September 30, 2017, we guarantee $11.2 million of the Market Square Buildings mortgage note (see Note 7, Commitments & Contingencies, to the accompanying financial statements). None of our other joint-venture owned properties carry a mortgage note.
(2)
2017 debt obligations includes the $49.0 million 263 Shuman mortgage note, which matured in July 2017. We are in the process of working to transfer this property to the lender in settlement of the mortgage note.
(3)
Interest obligations on variable-rate debt are measured at the rate at which they are effectively fixed with interest rate swap agreements (where applicable). 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.
(4)
Amounts include principal obligations only. We made interest payments on these obligations of $5.4 million during the nine months ended September 30, 2017, all of which 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.
(5)
Reflects obligations related to ground leases at certain properties, as 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 $61.1 million toward leasehold improvements.


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45


Results of Operations
Overview
As of September 30, 2017,2019, our portfolio of 16 operating properties and two properties under development or redevelopment was approximately 95.1%96.9% leased. For the periods presented, our operating results are impacted by investing activity as set forth below. In the near term, we expect real estate operating income to vary, primarily based on investing and leasing activities.
Acquisitions
PropertyLocation% AcquiredRentable Square FeetTransaction Date
Purchase Price(1)
(in thousands)
2018
799 BroadwayNew York, NY49.7 %182,000  October 3, 2018$30,200  
(2)
Lindbergh Center – RetailAtlanta, GA100.0 %147,000  October 24, 2018$23,000  
(1)Exclusive of transaction costs and purchase price adjustments.
(2)Purchase price is for our partial interests in the property, which is owned through an unconsolidated joint venture. Please refer to Note 3, Real Estate Transactions, and Note 4, Unconsolidated Joint Ventures, of the accompanying consolidated financial statements for more information.
Dispositions
PropertyLocation% SoldRentable Square FeetTransaction Date
Sales Price(1)
(in thousands)
2019
Lindbergh CenterAtlanta, GA100.0 %1,105,000  September 26, 2019$187,000  
One & Three Glenlake ParkwayAtlanta, GA100.0 %711,000  April 15, 2019$227,500  
2018
222 East 41st StreetNew York, NY100.0 %390,000  May 29, 2018$332,500  
263 Shuman BoulevardChicago, IL100.0 %354,000  April 13, 2018$49,000  
(2)
University Circle and 333 Market Street Joint Ventures(3)
San Francisco, CA22.5 %1,108,000  February 1, 2018$235,300  
(1)Exclusive of transaction costs and price adjustments.
(2)Reflects the principal balance of the 263 Shuman Boulevard mortgage note, which was extinguished by transferring the property to the lender in the second quarter of 2018.
(3)After the closing of this transaction, we retain a 55.0% ownership interest in both University Circle and 333 Market Street through unconsolidated joint ventures.

Dispositions      
Property Location Rentable Square Footage Transaction Date 
Sale Price(1)
(in thousands)
2017        
Allianz Joint Ventures:   1,108,000
 July 6, 2017 $234,000
22.5% of University Circle(2)
 San Francisco, CA 451,000
    
22.5% of 333 Market Street(2)
 San Francisco, CA 657,000
    
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 price adjustments.
(2)
Columbia Property Trust retains a 77.5% ownership interest in both University Circle and 333 Market Street through unconsolidated joint ventures.
Acquisitions        
Property Location Rentable Square Feet Transaction Date 
Purchase Price(1)
(in thousands)
2017        
49.5% of 114 Fifth Avenue(2)
 New York, NY 352,000
 July 6, 2017 $108,900
(1)
Exclusive of transaction costs and purchase price adjustments.
(2)
Columbia Property Trust holds a 49.5% ownership interest in 114 Fifth Avenue through an unconsolidated joint venture.
Comparison of the Three Months Ended September 30, 2017 with2019 With the Three Months Ended September 30, 20162018
Rental income was $55.0Lease revenues were $69.0 million for the three months ended September 30, 2017,2019, which represents a slight decrease as compared with $87.6$69.7 million for the three months ended September 30, 2016. The decrease is primarily due to2018, as the impact of the dispositions ($24.63.3 million) and the transfer of University Circle and 333 Market Street to unconsolidated joint ventures ($12.2 million),is partially offset by our lease with NYU Langone Medical at 222 East 41st Streetadditional revenues from recent leasing ($4.32.6 million). 222 East 41st Street was vacant during the prior year period as the full building was prepared for the lease with NYU Langone Medical that commenced in October 2016. We expect future rental incomelease revenues to vary based on recent and future investing and leasing activities.
Tenant reimbursementsAsset and property operating costs were $3.1management fee income was relatively stable at $1.9 million and $18.6 million, respectively, for the three months ended September 30, 2017, which reflects corresponding decreases as compared with $17.1 million and $39.1 million, respectively, for the three months ended September 30, 2016. The decrease in tenant reimbursements is primarily due to dispositions ($11.7 million) and the transfer of University Circle and 333 Market Street to unconsolidated joint ventures ($2.6 million). The decrease in property operating costs is primarily due to dispositions ($17.6 million), the new net lease at 222 East 41st Street ($3.1 million), and

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transferring University Circle and 333 Market Street to unconsolidated joint ventures ($1.9 million). Tenant reimbursements and property operating costs are expected to vary with leasing activity and changes in our portfolio.
Hotel income, net of hotel operating costs, was $1.3$1.8 million for the three months ended September 30, 2016. The Key Center Marriott was sold on January 31, 2017.
2019 and 2018, respectively. Asset and property management fee income was $1.2 million for the three months ended September 30, 2017, which represents an increase as compared with $0.5 million for the three months ended September 30, 2016. In the current year period, we provided asset and property management servicesis expected to the Market Square Joint Venture and the San Francisco Joint Ventures, since their formation in July 2017. In the prior year period, such services were provided only to the Market Square Joint Venture. We anticipate asset and property management fee income to increaseremain at similar levels in the near term, and may increase as a result of the newly formed 1800 M Street Joint Venture (see Note 4, Unconsolidated Joint Ventures).future investing activities.
Other property income was $1.1 million for the three months ended September 30, 2017,2019, which represents a decrease as compared with $1.8 million for the three months ended September 30, 2016,2018, primarily due to earning less income fromprior-year lease terminations in 2017 ($1.5 million), partially offset by increased reimbursements from unconsolidated joint ventures ($0.8 million).termination activity. Other property operating income is expected to vary in the future, based on additional lease restructuringfuture joint venture activities.
Property operating costs were $23.1 million for the three months ended September 30, 2019, which represents an increase as compared with $21.0 million for the three months ended September 30, 2018, primarily due to increases in property and other taxes. Property operating costs are expected to vary based on recent and future investing and leasing activities.
Asset and property management fee expenses were $0.1 million for the three months ended September 30, 2019, which represents a decrease as compared with $0.2 million for the three months ended September 30, 2017, which represents2018, as a decrease as compared with $0.4 million for the three months ended September 30, 2016, primarily dueresult of transitioning one of our properties from third-party to the sale of the Key Center Marriott in January 2017 ($0.2 million).internal management. Future asset and property management fee expenses are expected to remain stable in the near term, and may increase as a result of future investing activity.activities.
46

Depreciation was $18.5relatively stable at $19.8 million and $19.9 million for the three months ended September 30, 2017, which represents a decrease2019 and 2018, respectively, as compared with $26.8 million for the three months ended September 30, 2016. The decrease is primarily due toimpact of dispositions ($5.21.1 million) and transferring University Circle and 333 Market Street to unconsolidated joint ventureswas largely offset by capital projects across the portfolio ($2.81.0 million). Depreciation is expected to vary based on recent and future investing activity.activities and capital projects.
Amortization was $6.9$7.5 million for the three months ended September 30, 2017,2019, which represents a slight decrease as compared with $11.9$7.9 million for the three monthsmonths ended September 30, 2016. The decrease is2018, primarily due to dispositions ($2.1 million), intangible lease assets written off due to the early termination or expiration of leases ($1.7 million), and transferring University Circle and 333 Market Street to unconsolidated joint ventures ($1.1 million).dispositions. We expectexpect future amortization to vary, based on recent and future investing activity.and leasing activities.
Effective July 1, 2017,For the three months ended September 30, 2019, we began to allocate certain generalrecognized an impairment loss of $23.4 million in connection with changing the holding period expectation for Lindbergh Center. Future impairment losses will depend primarily on our holding period intentions and any disposition strategies evaluated for our other properties.
General and administrative – corporate expenses to unconsolidated joint ventures based on the time incurred to manage assets owned by our unconsolidated joint ventures. The method for measuring aggregate general and administrative expenses has not changed, and total general and administrative expenses remained relatively stable at $7.7 million and $7.5were $7.1 million for the three months ended September 30, 2017 and 2016, respectively.  General and administrative expenses - corporate decreased to $7.02019, which represents a decrease as compared with $8.3 million for the three months ended September 30, 2017 from $7.52018, primarily due to prior-period professional fees. General and administrative – corporate expenses are expected to remain at similar levels in the near term.
General and administrative – unconsolidated joint ventures expenses were $0.8 million for the three months ended September 30, 2016; and general and administrative expenses - unconsolidated joint ventures increased to2019, which represents a slight increase as compared with $0.7 million for the three months ended September 30, 2017 from $0.02018, primarily due to expanding our team. Future general and administrative – unconsolidated joint ventures expenses are expected to vary as a result of future investing activities.
For the three months ended September 30, 2019, we recognized pre-acquisition costs of $2.4 million related to the Normandy transaction described in Note 15, Subsequent Events, of the accompanying consolidated financial statements. We expect to incur additional acquisition costs in connection with closing the transaction.
Interest expense was $10.3 million for the three months ended September 30, 2016.
Interest expense was $14.72019, which represents a decrease as compared with $13.1 million for the three months ended September 30, 2017, which represents a2018. The decrease as compared with $17.1 million for the three months ended September 30, 2016, primarily due to mortgage note payoffs ($1.4 million) and bond interest savings resultingresults from the issuancesettlement of a capital lease obligation using the 2026 Bonds Payablecorresponding development authority bonds in December 2018 ($1.8 million), prior-year debt repayments and redemptionsettlements ($0.4 million), and interest capitalization ($0.3 million), which are partially offset by the net impact of paying down the 2018 Bonds Payable in 2016$300 Million Term Loan with borrowings on the lower-rate Revolving Credit Facility ($1.10.3 million). We expect interest expense to increasevary in the near term due to borrowings to fund acquisitions occurring subsequent to period end.based on future financing activities.
Interest and other income was $2.8 million for the three months ended September 30, 2017, which represents an increase compared with $1.8 million for the three months ended September 30, 2016. The increase is due to interest income earned on additional cash deposits held in 2017 ($1.0 million).2018. The majority of this income iswas earned on investments in development authority bonds, withwhich were used to settle a remaining term of approximately 4.3 years as of September 30, 2017 ($1.8 million for both the three months ended September 30, 2017 and September 30, 2016).corresponding capital lease obligation in December 2018. Interest income earned on investments in development authority bonds iswas entirely offset by interest expense incurred on the corresponding capital leases. Interest income is expected to decreasevary based on outstanding borrowings in the near term, as we have reinvested cash on hand.term.
We recognized a loss on early extinguishment of debt of $0.3 million and $18.9Income from the unconsolidated joint ventures was $2.2 million for the three months ended September 30, 2017 and September 30, 2016, respectively. In August 2017, we repaid the $124.8 million 650 California Street building mortgage note approximately 23 months early; and, in April 2016, we repaid the $119.0 million remaining balance on2019, which represents a bridge loan approximately three months early. 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 varydecrease as compared with financing activities.

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Income (loss) from the unconsolidated joint ventures was $2.9$2.4 million for the three months ended September 30, 2017, which represents an increase as compared2018, primarily due to $(1.9)decreased occupancy at University Circle ($0.4 million), partially offset by additional leasing at Market Square ($0.2 million). We expect income from the unconsolidated joint ventures to vary based on future joint venture investing activities and leasing activity at the properties owned through unconsolidated joint ventures.
We recognized a gain on sale of real estate assets of $0.1 million for the three months ended September 30, 2016. The increase is2019, due to post-closing adjustments related to the transferApril 2019 sale of University Circle and 333 Market StreetOne & Three Glenlake Parkway. See Note 3, Real Estate Transactions, of the accompanying consolidated financial statements for additional details. We expect future gains on sales of real estate assets to unconsolidated joint ventures, in which we retain a 77.5% ownership interest, and the acquisition of a 49.5% interest in 114 Fifth Avenue through an unconsolidated joint venture, none of which are encumbered by mortgage debt. Future income or loss from unconsolidated joint ventures may vary as a result of future investing activities and leasing at the properties owned through joint ventures.with disposition activity.
Net income (loss) was $101.5$(20.3) million, or $0.84$(0.17) per basic and diluted share, for the three months ended September 30, 2017,2019, which represents an increasea decrease as compared with $36.9a net income of $6.4 million, or $0.30$0.05 per basic and diluted share, for the three months ended September 30, 2016.2018. The increasedecrease is primarily due to gains recognized on dispositionsthe current-period impairment ($52.0 million), 2016 debt repayment activity ($18.6 million), the lease with NYU Langone Medical at 222 East 41st Street that commenced in the fourth quarter of 2016 ($7.6 million), and fees earned for managing the new Allianz Joint Ventures ($0.6 million), partially offset by lost income from sold properties ($15.123.4 million). See the "SupplementalSupplemental Performance Measures" section Measuresbelow for our same-store results compared with the prior year. We expectexpect future earnings to vary, primarily as a result of leasing activity at our existing properties and future investing activity.

Comparison of the Nine Months Ended September 30, 2017 with2019 With the Nine Months Ended September 30, 20162018
Rental income was $193.3Lease revenues were $210.4 million for the nine months ended September 30, 2017,2019, which represents a slight decrease as compared with $280.7$211.5 million for the nine months ended September 30, 2016. The decrease is primarily due to2018, as the impact of dispositions ($76.311.0 million) and transferring University Circle and 333 Market Street to unconsolidated joint ventureswas largely offset by additional revenues from recent leasing ($11.49.9 million). We expect future rental incomelease revenues to vary based on recent and future investing and leasing activity.activities.
Tenant reimbursements
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Asset and property operating costs were $18.6management fee income was relatively stable at $5.7 million and $64.5 million, respectively, for the nine months ended September 30, 2017, which reflects corresponding decreases as compared with $55.6 million and $120.7 million, respectively, for the nine months ended September 30, 2016. The decrease in tenant reimbursements is primarily due to dispositions ($30.2 million), and the new net lease at 222 East 41st Street ($2.9 million), and transferring University Circle and 333 Market Street to unconsolidated joint ventures ($2.2 million). The decrease in property operating costs is primarily due to dispositions ($47.1 million), the new net lease at 222 East 41st Street ($9.2 million), and transferring University Circle and 333 Market Street to unconsolidated joint ventures ($1.8 million). Tenant reimbursements and property operating costs are expected to vary with leasing activity and changes in our portfolio.
Hotel income, net of hotel operating costs, was $(0.7)$5.4 million for the nine months ended September 30, 2017, which represents2019 and 2018, respectively. Asset and property management fee income is expected to remain at similar levels in the near term, and may increase as a decrease as compared with $3.2result of future investing activities.
Other property income was $4.0 million for the nine months ended September 30, 2016, due to the sale of the Key Center Marriott on January 31, 2017.
Asset and property management fee income was $2.12019, which represents a decrease from $5.5 million for the nine months ended September 30, 2017, which represents an increase as compared with $1.7 million for the nine months ended September 30, 2016. In the current year period, we provided asset and property management services to the Market Square Joint Venture and the San Francisco Joint Ventures, since their formation in July 2017. In the prior year period, such services were provided only to the Market Square Joint Venture. We anticipate asset and property management fee income to increase in the near term as a result of the newly formed 1800 M Street Joint Venture (see Note 4, Unconsolidated Joint Ventures).
Other property income was $2.0 million for the nine months ended September 30, 2017, which represents a decrease as compared with $12.4 million for the nine months ended September 30, 2016,2018, primarily due to earning an earlyprior-year lease termination fee of $6.2 million at 222 East 41st Street in June 2016 and $4.5 million for other lease terminations in 2016. The terminated lease at 222 East 41st Street was replaced with a full-building lease, which commenced in the fourth quarter of 2016. The decrease in termination fee income was partially offset by increased reimbursements from unconsolidated joint ventures ($0.8 million).activity. Other property operating income is expected to vary in the future, based on additional lease restructuringfuture joint venture activities.
Asset and property management fee expensesProperty operating costs were $0.7$70.0 million for the nine months ended September 30, 2017,2019, which represents a slight increase as compared with $66.5 million for the nine months ended September 30, 2018, primarily due to increases in property and other taxes. Property operating costs are expected to vary, based on recent and future investing and leasing activities.
Asset and property management fee expenses were $0.5 million for the nine months ended September 30, 2019, which represents a slight decrease as compared with $1.1$0.6 million andfor the nine months ended September 30, 2016, primarily due2018, as a result of transitioning one of our properties from third-party to the sale of the Key Center Marriott in January 2017 ($0.3 million).internal management. Future asset and property management fee expenses are expected to remain stable in the near term, and may increase as a result of future investing activity.activities.
Depreciation was $60.5$59.5 million for the nine months ended September 30, 2017,2019, which represents a slight decrease as compared with $84.5$61.4 million for the nine months ended September 30, 2016. The decrease is primarily due to2018, as the impact of dispositions ($20.63.4 million) and transferring University Circle and 333 Market Street to unconsolidated joint ventureswas partially offset by capital projects across the portfolio ($2.81.4 million). Depreciation is expected to vary, based on recent and future investing activity.activities and capital projects.
Amortization was $24.5was $22.1 million for the nine months ended September 30, 2017,2019, which represents a decrease as compared with $42.9$24.6 million for the nine months ended September 30, 2016. The decrease is primarily due to intangibles written off due to the

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early termination or expiration of leases ($8.2 million), dispositions ($8.11.4 million), and transferring University Circlelease terminations and 333 Market Street to unconsolidated joint venturesextensions ($1.21.1 million). We expect future amortization to vary, basedbased on recent and future investing activity.and leasing activities.
Effective July 1, 2017, we began to certain allocate general and administrative expenses to unconsolidated joint ventures based on the time incurred to manage assets owned by our unconsolidated joint ventures. The method for measuring aggregate general and administrative expenses has not changed, and total general and administrative expenses remained relatively stable at $25.7 million for bothFor the nine months ended September 30, 20172019, we recognized an impairment loss of $23.4 million in connection with changing the holding period expectations for Lindbergh Center; and 2016. for the nine months ended September 30, 2018, we recognized an impairment loss of $30.8 million in connection with changing our holding period expectations for 222 East 41st Street. Future impairment losses will depend primarily on our holding period intentions and any disposition strategies evaluated for our other properties.
General and administrative – corporate expenses - corporate decreased to $25.0were relatively stable at $23.7 million and $24.4 million for the nine months ended September 30, 2017 from $25.72019 and 2018, respectively. General and administrative – corporate expenses are expected to remain at similar levels in the near term.
General and administrative – unconsolidated joint ventures expenses were $2.5 million for the nine months ended September 30, 2016; and general and administrative expenses - unconsolidated joint ventures increased to $0.72019, which represents a slight increase as compared with $2.2 million for the nine months ended September 30, 2017 from $0.02018, primarily due to expanding our team. Future general and administrative – unconsolidated joint ventures expenses are expected to vary as a result of future investing activities.
For the nine months ended September 30, 2019, we recognized pre-acquisition costs of $2.4 million related to the Normandy transaction described in Note 15, Subsequent Events, of the accompanying consolidated financial statements. We expect to incur additional acquisition costs in connection with closing the transaction.
Interest expense was $33.3 million for the nine months ended September 30, 2016.
Interest expense was $44.32019, which represents a decrease as compared with $43.3 million for the nine months ended September 30, 2017,2018. The decrease results from the settlement of a capital lease obligation using the corresponding development authority bonds in December 2018 ($5.4 million), prior-year debt repayments and settlements ($5.2 million), and interest capitalization ($1.0 million), which representsare partially offset by the net impact of paying down the $300 Million Term Loan with borrowings on the lower-rate Revolving Credit Facility ($1.6 million). We expect interest expense to vary in the near term based on future financing activities.
We recognized a decrease as compared with $52.4gain on extinguishment of debt of $23.7 million for the nine months ended September 30, 2016, primarily2018. In April 2018, we transferred 263 Shuman Boulevard to the lender in extinguishment of the related mortgage note, resulting in a $24.0 million gain on extinguishment of debt; and in May 2018, we repaid the remaining outstanding balance on our bridge loan approximately six months early, resulting in a $0.3 million loss due to mortgage note payoffs ($3.5 million), incurring interest on our linethe write-off of credit borrowings in the prior period ($2.9 million), bond interest savings resulting from the issuance of the 2026 Bonds Payable and redemption of the 2018 Bonds Payable in 2016 ($2.1 million).related deferred financing costs. We expect interest expensefuture gains or losses on extinguishments of debt to increase in the near term due to borrowings to fund acquisitions occurring subsequent to period end.vary with financing activities.
Interest and other income was $7.7$5.4 million for the nine months ended September 30, 2017, which represents an increase compared with $5.5 million for the nine months ended September 30, 2016. The increase is due to interest income earned on cash deposits ($2.2 million).2018. The majority of this income iswas earned on investments in development authority bonds, withwhich were used to settle a remaining term of approximately 4.3 years as of September 30, 2017 ($5.4 million for both the nine months ended September 30, 2017 and September 30, 2016).corresponding capital lease obligation in December 2018. Interest income earned on investments in development authority bonds iswas entirely offset by interest expense incurred on the corresponding capital leases. Interest income is expected to decreaseremain at similar levels in the near term, as we have reinvested cash on hand.term.
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We recognized a lossgain on early extinguishmentsale of debt of $0.3 million and $19.0 million for the nine months ended September 30, 2017 and September 30, 2016, respectively. In March 2017, we repaid the 221 Main Street building mortgage note approximately two months early; and in August 2017, we repaid the 650 California Street building mortgage note approximately 23 months early. In April 2016, we repaid the $119.0 million remaining balance on a bridge loan approximately three months early. 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 vary with financing activities.
Loss from unconsolidated joint ventures wasventure interests of $0.8 million for the nine months ended September 30, 2017, which represents2018, related to the sale of an increaseadditional 22.5% interest in University Circle and 333 Market Street joint ventures in February 2018, as comparedfurther described in Note 3, Real Estate Transactions, to the accompanying consolidated financial statements. We expect future gains or losses on sales of unconsolidated joint venture interests to vary with $5.4future joint venture disposition activities.
Income from the unconsolidated joint ventures was relatively stable at $6.2 million and $5.9 million for the nine months ended September 30, 2016. The increase is due to2019 and 2018, respectively. We expect income from the transfer of University Circle and 333 Market Street to unconsolidated joint ventures in which we retain a 77.5% ownership interest, and the acquisition of a 49.5% interest in 114 Fifth Avenue. Future income or loss from unconsolidatedto vary based on future joint ventures will vary as a result of futureventure investing activities and leasing activity at the properties held inowned through unconsolidated joint ventures.
We recognized a gain on sale of real estate assets of $175.5$42.0 million for the nine months ended September 30, 2017,2019, as a result of selling three propertiesOne & Three Glenlake Parkway in Houston, Texas, and the Key Center Tower and Marriott in Cleveland, Ohio in January 2017; and selling a 22.5% interest in eachApril 2019. See Note 3, Real Estate Transactions, of the University Circle property and the 333 Market Street building in July 2017.accompanying consolidated financial statements for additional details. We recognized a gainexpect future gains on salesales of real estate assets of $50.1 million for the nine months ended September 30, 2016, as a result of selling three properties in separate transactions during the first nine months of 2016. See Note 3, Real Estate Transactions, for details of these transactions. Future gains on sale of real estate assets willto vary with future disposition activity. activity.
Net income was $177.4$31.0 million, or $1.46$0.26 per basic and diluted share, for the nine months ended September 30, 2017,2019, which represents an increase as compared with $56.9$4.5 million, or $0.46$0.04 per basic and diluted share, for the nine months ended September 30, 2016.2018. The increase is primarily due to gainsthe current-period gain on sale of real estateOne & Three Glenlake Parkway ($125.442.0 million) and financing activities resulting in interest savings in the current year and losses on early extinguishment of debt in the prior yearyear-over-year impairment loss activity ($26.87.4 million), partially offset by lost income from sold propertiesprior-period gain on extinguishment of debt ($32.823.7 million). See the "SupplementalSupplemental Performance Measures" sectionMeasures below for our same-store results compared with the prior year. We expectexpect future earnings to vary, primarily as a result of leasing activity at our existing properties and future investing activity.


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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 September 30, 2017,2019, we aggregated our properties into the following geographic segments: New York, San Francisco, Atlanta, Washington, D.C., Atlanta, Boston, Los Angeles, and all other office markets. All other office markets consists of properties in low-barrier-to-entry geographic locations in which we do not have a substantial presence and do not plan to make further investments. NOI, as presented below, includes our share of properties owned through unconsolidated joint ventures. See Note 11,13, Segment Information, toof the accompanying consolidated financial statements.statements for additional information and a reconciliation from GAAP net income to NOI.
The following table presents NOI by geographic segment (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2019201820192018
New York(1)
$23,235  $23,145  $69,721  $71,693  
San Francisco(2)
20,495  19,925  61,399  58,875  
Washington, D.C.(3)
8,475  8,844  25,514  25,976  
Atlanta5,640  9,245  19,935  27,083  
Boston1,700  1,890  5,564  5,203  
Los Angeles1,092  1,119  3,374  3,481  
All other office markets3,870  3,989  11,558  11,149  
Total office segments64,507  68,157  197,065  203,460  
Corporate(225) (204) (665) (599) 
Total NOI$64,282  $67,953  $196,400  $202,861  
 Three Months Ended September 30, Nine Months Ended September 30,
 2017 2016 2017 2016
New York$16,536
 $11,380
 $50,411
 $52,515
San Francisco18,166
 20,095
 57,733
 60,547
Atlanta8,500
 8,249
 25,078
 24,756
Washington, D.C.4,209
 3,632
 11,052
 13,303
Boston1,196
 1,425
 3,797
 4,111
Los Angeles1,155
 894
 3,439
 3,336
All other office markets4,071
 23,723
 15,598
 76,111
Total office segments53,833
 69,398
 167,108
 234,679
Hotel(24) 1,301
 (914) 3,171
Corporate(364) (59) (489) (137)
Total$53,445
 $70,640
 $165,705
 $237,713
(1)Includes NOI for two unconsolidated properties, 114 Fifth Avenue and 799 Broadway, based on our ownership interest: 49.5% for 114 Fifth Avenue for all periods presented; and 49.7% for 799 Broadway from October 3, 2018 through September 30, 2019.
New York
Current quarter(2)Includes NOI was positively impacted by the commencement of our lease with NYU Langone Medical at 222 East 41st Street, which was vacant during the prior year period, as the full building was prepared for the lease with NYU Langone Medical, which commenced in October 2016. New York NOI is expected to increase in the near term with the acquisitions of 245-249 West 17th Street and 218 West 18th Street in October 2017, as described in Note 3, Real Estate Transactions, of the accompanying consolidated financial statements.
San Francisco
NOI has decreased quarter over quarter due to the July 6, 2017 sale of a 22.5% interest in bothtwo unconsolidated properties, 333 Market Street and University Circle. San FranciscoCircle, based on our ownership interests:  77.5% from January 1, 2018 through January 31, 2018; and 55.0% from February 1, 2018 through September 30, 2019.
(3)Includes NOI is expected to decrease infor two unconsolidated properties, Market Square and 1800 M Street, based on our ownership interests: 51.0% for the near termMarket Square and 55.0% for 1800 M Street for all periods presented.
Atlanta
NOI decreased as a result of the planned sale of an additional 22.5% interestOne & Three Glenlake Parkway in each of these properties, as described in Note 3, Real Estate Transactions, of the accompanying consolidated financial statements.
Washington, D.C.
NOI for the nine month period has been impacted by decreased occupancy at 80 M Street and Market Square earlier in the current year. Over the near term, Washington, D.C. NOI is expected to increase as a result of recent leasing activity and the October 2017 acquisition of a 55% interest in 1800 M Street, as described in Note 3, Real Estate Transactions, of the accompanying consolidated financial statements.April 2019.
Boston
For the quarter-to-date periods, NOI has been impacted by decreased occupancydue to lease termination income earned in 2018. For the year-to-date periods, NOI increased due to additional leasing at 116 Huntington. NOI is expectedHuntington Avenue (commenced occupancy increased from 77.4% at January 1, 2019 to vary with leasing activity88.8% at the property.June 30, 2019).
Los Angeles
NOI for the quarter was impacted positively by property tax reimbursements in prior year at Pasadena Corporate Park. NOI is expected to remain at similar levels for the near term.
All other office markets
NOI has decreased significantly as a result of selling 9 office properties between July 1, 2016 and January 31, 2017. We expect all other office markets NOI to remain relatively stable in the near term.
Hotel
The Key Center Marriott, our only hotel, was sold on January 31, 2017.

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Supplemental Performance Measures
In addition to net income, we measure theour performance of the company using certain non-GAAP supplemental performance measures,metrics, including: (i) Funds From Operations ("FFO"), (ii) Net Operating Income ("NOI"), and (iii) Same Store Net Operating Income ("Same Store NOI"). These non-GAAP metricssupplemental performance measures are commonly used by REIT industry analysts and investors, as supplemental operation performance measures of REITs and are viewed by management to be useful indicators of operating performance. Historical cost accounting for real estate assets in accordance with GAAP implicitly assumesperformance principally because they exclude the effects of certain income and expenses that do not reflect the valuecash-generating capability of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, many industry analysts and investors have considered presentation of operating results for real estate companies using historical cost accounting alone to be insufficient.our operations. Management believes that the use of FFO, NOI, and Same Store NOI, combined with net income, improves the understanding of operating results of REITs among the investing public and makes comparisons of REIT operating results more meaningful.
Net income is the most comparable GAAP measure to FFO, NOI, and Same Store NOI. Each of these supplemental performance measures excludeexcludes expenses that materially impact our overall results of operations and, therefore, should not be considered as a substitute for net income, income 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, principally because it principally adjusts forexcludes the effects of GAAP depreciation and amortization of real estate assets, which assumes thatassets. GAAP depreciation and amortization reflect a systematic reduction in the carrying value of real estate diminishes predictably over time. Sinceassets and, therefore, are not indicative of the actual increase or decrease in the realizable value of real estate values have historically risen or fallen with market conditions, we believe that FFO provides a meaningful supplemental measure of our performance.assets. We believe that the use of FFO, combined with the required GAAP presentations, is beneficial in improving our investors' understanding of our operating results and allowing for comparisons among other companies who define FFO as we do.
FFO, as defined by the National Association of Real Estate Investment Trusts ("NAREIT"), represents net income (computed in accordance with GAAP), excluding gains or losses on sales of real estate and impairments of real estate assets, plusand 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 thisthus may not be comparable to those presentations.
FFO is not reduced for the amounts needed to fund capital replacements or 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.
NetGAAP net income reconciles to FFO as follows (in thousands):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2019201820192018
Net income (loss)$(20,286) $6,429  $30,974  $4,488  
Adjustments:
Depreciation of real estate assets19,773  19,878  59,512  61,394  
Amortization of lease-related costs7,485  7,920  22,052  24,559  
Impairment loss on real estate assets23,364  —  23,364  30,812  
Depreciation and amortization included in income from unconsolidated joint ventures(1)
12,574  12,519  38,004  38,709  
Gain on sale of unconsolidated joint venture interests—  —  —  (762) 
Gain on sale of real estate assets(112) —  (42,030) —  
Total funds from operations adjustments63,084  40,317  100,902  154,712  
NAREIT FFO available to common stockholders$42,798  $46,746  $131,876  $159,200  
 Three Months Ended
September 30,		 Nine Months Ended
September 30,
 2017 2016 2017 2016
Net income$101,534
 $36,898
 $177,389
 $56,881
Adjustments:       
Depreciation of real estate assets18,501
 26,778
 60,529
 84,517
Amortization of lease-related costs6,870
 11,895
 24,518
 42,902
Depreciation and amortization included in income (loss) from unconsolidated joint ventures(1)
7,180
 2,123
 11,401
 6,670
Loss (gains) on sales of real estate assets(102,365) (50,412) (175,518) (50,083)
Total funds from operations adjustments(69,814) (9,616)
(79,070)
84,006
NAREIT FFO available to common stockholders$31,720
 $27,282

$98,319

$140,887
(1)Reflects our ownership interest in depreciation and amortization for investments in unconsolidated joint ventures.
(1)
Reflects our ownership interest in depreciation and amortization for investments in unconsolidated joint ventures.

The following significant noncash revenues and expenses are included in our funds from operations:
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•Straight-line rental income, net:  to recognize rent on a straight-line basis over the lease term, we recognized net straight-line rental income for our wholly owned properties of $2.0 million and $5.1 million for the three months ended September 30, 2019 and 2018, respectively; and $9.7 million and $22.3 million for the nine months ended September 30, 2019 and 2018, respectively. Income from unconsolidated joint ventures includes additional net straight-line rental income of $0.2 million and $(0.1) million for the three months ended September 30, 2019 and 2018, respectively; and $0.9 million and $0.3 million for the nine months ended September 30, 2019 and 2018, respectively. 
•Amortization of intangible lease assets and liabilities:  to amortize above- and below-market, in-place lease intangible assets (liabilities), we recognized net increases to rental revenues (or decreases to operating expenses) for our wholly owned properties of $(1.1) million and $1.0 million for the three months ended September 30, 2019 and 2018, respectively; and $(3.4) million and $(2.2) million for the nine months ended September 30, 2019 and 2018, respectively. Income from unconsolidated joint ventures includes additional net operating income for amortization of intangible lease assets and liabilities of $(2.4) million and $(2.8) million for the three months ended September 30, 2019 and 2018, respectively; and $(7.4) million and $(8.7) million for the nine months ended September 30, 2019 and 2018, respectively.
•Gain on extinguishment of debt:  we recognized a gain on the settlement of debt of $23.7 million during the nine months ended September 30, 2018. 
•Amortization of deferred financing costs and debt premiums (discounts):  to amortize costs associated with securing debt from third-party lenders over the terms of the respective debt facilities, we recognized noncash interest expense of $0.6 million and $0.7 million for the three months ended September 30, 2019 and 2018, respectively; and $1.9 million and $2.4 million for the nine months ended September 30, 2019 and 2018, respectively. Income from unconsolidated joint ventures includes additional noncash interest expense of $0.4 million for both the three months ended September 30, 2019 and 2018; and $1.2 million for both the nine months ended September 30, 2019 and 2018. 
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 acquisitions and dispositions.changes in our operating portfolio. On an individual property basis, Same Store NOI is computed in the same manner as NOI (as described in the preceding section).
Quarter to Date
For the periods presented,three months ended September 30, 2019, we have defined our same-store portfolio as those properties that have been continuously owned and operated since July 1, 20162018 (the first day of the first quarterly period presented). NOI and Same Store NOI are calculated as follows for the three months ended September 30, 20172019 and 20162018 (in thousands):
Three Months Ended September 30,
20192018
Same Store NOI – wholly owned properties:
Revenues:
Lease revenues$62,265  $59,797  
Other property income1,071  1,216  
Total revenues63,336  61,013  
Property operating expenses(22,189) (19,992) 
Same Store NOI – wholly owned properties(1)
41,147  41,021  
Same Store NOI – joint venture-owned properties(2)
17,534  17,648  
Same Store NOI58,681  58,669  
NOI from acquisitions(3)
(39) —  
NOI from dispositions(4)
5,640  9,284  
NOI$64,282  $67,953  
 Three Months Ended September 30,
 2017 2016
Revenues:   
Rental income$54,293
 $48,862
Tenant reimbursements4,293
 4,067
Other property income946
 1,703
Total revenues59,532
 54,632
Property operating expenses(19,991) (19,122)
Same Store NOI – wholly owned properties(1)
$39,541
 $35,510
Same Store NOI – joint venture owned properties(2)
$13,079
 $12,215
NOI from acquisitions(3)
533
 —
NOI from dispositions(4)
292
 22,915
NOI$53,445
 $70,640
(1)
(1)Reflects NOI from properties that were wholly owned for the entirety of the periods presented.
(2)
For both periods, reflects our ownership interest in NOI for properties owned through unconsolidated joint ventures as of September 30, 2017. The NOI for properties held through unconsolidated joint ventures is included in income (loss) from unconsolidated joint ventures in our accompanying consolidated statements of operations. See Note 4, Unconsolidated Joint Ventures, of the accompanying consolidated financial statements, for more information.
(3)
Reflects activity for the following properties acquired since July 1, 2016, for all periods presented: 49.5% of 114 Fifth Avenue.
(4)
Reflects activity for the following properties sold since July 1, 2016, for all periods presented: 22.5% of University Circle, 22.5% of 333 Market Street, 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.
Same store NOI increased for the threeentirety of the periods presented.
(2)Reflects NOI earned from properties owned through unconsolidated joint ventures based on our ownership interest as of September 30, 2019, for the entirety of the periods presented. The NOI for properties held through unconsolidated joint ventures is included in income from unconsolidated joint ventures in our accompanying consolidated statements of operations. See Note 4, Unconsolidated Joint Ventures, of the accompanying consolidated financial statements, for more information.
(3)Reflects activity for the following property acquired since July 1, 2018: 49.7% of 799 Broadway, acquired on October 3, 2018.
(4)Reflects activity for the following properties sold since July 1, 2018, for all periods presented: Lindbergh Center, sold on September 26, 2019; One & Three Glenlake Parkway, sold on April 15, 2019; 222 East 41st Street, sold on May 29, 2018; and 263 Shuman Boulevard, returned to lender on April 13, 2018.

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Year to Date
For the nine months ended September 30, 2017,2019, we have defined our same-store portfolio as compared withthose properties that have been continuously owned and operated since January 1, 2018 (the first day of the threefirst annual period presented). NOI and Same Store NOI are calculated as follows for the nine months ended September 30, 2016, primarily due to2019 and 2018 (in thousands):
Nine Months Ended September 30,
20192018
Same Store NOI – wholly owned properties:
Revenues:
Lease revenues$184,998  $175,085  
Other property income3,795  3,860  
Total revenues188,793  178,945  
Property operating expenses(64,767) (61,022) 
Same Store NOI – wholly owned properties(1)
124,026  117,923  
Same Store NOI – joint venture-owned properties(2)
52,713  51,649  
Same Store NOI176,739  169,572  
NOI from acquisitions(3)
(249) —  
NOI from dispositions(4)
19,910  33,289  
NOI$196,400  $202,861  
(1)Reflects NOI from properties that were wholly owned for the entirety of the periods presented.
(2)Reflects NOI earned from properties owned through unconsolidated joint ventures based on our lease with NYU Langone Medical atownership interest as of September 30, 2019, for the entirety of the periods presented. The NOI for properties held through unconsolidated joint ventures is included in income from unconsolidated joint ventures in our accompanying consolidated statements of operations. See Note 4, Unconsolidated Joint Ventures, of the accompanying consolidated financial statements, for more information.
(3)Reflects activity for the following property acquired since January 1, 2018: 49.7% of 799 Broadway, acquired on October 3, 2018.
(4)Reflects activity for the following properties sold since January 1, 2018, for all periods presented: Lindbergh Center, sold on September 26, 2019; One & Three Glenlake Parkway, sold on April 15, 2019; 222 East 41st Street, which was vacant during the prior year period as the full building was preparedsold on May 29, 2018; 263 Shuman Boulevard, returned to lender on April 13, 2018; and 22.5% of both University Circle and 333 Market Street, sold on February 1, 2018.
Same Store NOI increased from $169.6 million for the lease with NYU Langone Medicalnine months ended September 30, 2018, to commence in October 2016. Same store NOI is expected increase over$176.7 million for the near termnine months ended September 30, 2019, primarily as a result of recent leasing activity.at 315 Park Avenue South in New York and at 650 California Street in San Francisco.


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Reconciliation
A reconciliation of GAAP net income to NOI and Same Store NOI is presented below (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2019201820192018
Net income (loss)$(20,286) $6,429  $30,974  $4,488  
Asset and property management fee income(1,914) (1,825) (5,681) (5,402) 
Depreciation19,773  19,878  59,512  61,394  
Amortization7,485  7,920  22,052  24,559  
Impairment loss23,364  —  23,364  30,812  
General and administrative – corporate7,103  8,303  23,707  24,379  
General and administrative – unconsolidated joint ventures839  746  2,486  2,213  
Pre-acquisition costs2,437  —  2,437  —  
Net interest expense10,289  13,049  33,280  43,241  
Interest income from development authority bonds—  (1,800) —  (5,400) 
Gain on extinguishment of debt—  —  —  (762) 
Gain on sale of unconsolidated joint venture interests—  —  —  (23,713) 
Income tax expense2  3  18  16  
Adjustments included in income from unconsolidated joint ventures15,302  15,250  46,281  47,036  
Gain on sale of real estate assets(112) —  (42,030) —  
NOI:$64,282  $67,953  $196,400  $202,861  
Same Store NOI – joint venture owned properties(1)
(17,534) (17,648) (52,713) (51,649) 
NOI from acquisitions(2)
39  —  249  —  
NOI from dispositions(3)
(5,640) (9,284) (19,910) (33,289) 
Same Store NOI – wholly owned properties(4)
$41,147  $41,021  $124,026  $117,923  
 Three Months Ended September 30,
 2017 2016
Net income$101,534
 $36,898
Depreciation18,501
 26,778
Amortization6,870
 11,895
General and administrative - corporate7,034
 7,467
General and administrative - joint venture713
 —
Net interest expense13,690
 17,116
Interest income from development authority bonds(1,800) (1,800)
Loss on early extinguishment of debt280
 18,905
Income tax expense3
 65
Asset and property management fee income(1,154) (511)
Adjustments included in income (loss) from unconsolidated joint ventures10,139
 4,239
Loss on sales of real estate assets(102,365) (50,412)
NOI:$53,445
 $70,640
Same Store NOI – joint venture owned properties(1)
(13,079) (12,215)
NOI from acquisitions(2)
(533) —
NOI from dispositions(3)
(292) (22,915)
Same Store NOI – wholly owned properties(4)
$39,541
 $35,510
(1)Reflects NOI earned from properties owned through unconsolidated joint ventures based on our ownership interest as of September 30, 2019, for the entirety of the periods presented. The NOI for properties held through unconsolidated joint ventures is included in income from unconsolidated joint ventures in our accompanying consolidated statements of operations.
(2)For the three months ended September 30, 2019, reflects activity for the following property acquired since July 1, 2018: 49.7% of 799 Broadway, acquired on October 3, 2018. For the nine months ended September 30, 2019, reflects activity for the following property acquired since January 1, 2018: 49.7% of 799 Broadway, acquired on October 3, 2018.
(3)For the three months ended September 30, 2019, reflects activity for the following properties sold since July 1, 2018, for all periods presented: Lindbergh Center, sold on September 26, 2019; One & Three Glenlake Parkway, sold on April 15, 2019; 222 East 41st Street, sold on May 29, 2018; and 263 Shuman Boulevard, returned to lender on April 13, 2018. For the nine months ended September 30, 2019, reflects activity for the following properties sold since January 1, 2018, for all periods presented: Lindbergh Center, sold on September 26, 2019; One & Three Glenlake Parkway, sold on April 15, 2019; 222 East 41st Street, sold on May 29, 2018; 263 Shuman Boulevard, returned to lender on April 13, 2018; and 22.5% of both University Circle and 333 Market Street, sold on February 1, 2018.
(4)Reflects NOI from properties that were wholly owned for the entirety of the periods presented.

(1)
For both periods, reflects our ownership interest in NOI for properties owned through unconsolidated joint ventures as of September 30, 2017. The NOI for properties held through unconsolidated joint ventures is included in income (loss) from unconsolidated joint ventures in our accompanying consolidated statements of operations.
(2)
Reflects activity for the following properties acquired since July 1, 2016, for all periods presented: 49.5% of 114 Fifth Avenue.
(3)
Reflects activity for the following properties sold since July 1, 2016, for all periods presented: 22.5% of University Circle, 22.5% of 333 Market Street, 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.
(4)
Reflects NOI from properties that were 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 tostockholders. To the dividends-paid deduction and by excludingextent that we satisfy the distribution requirement but distribute less than 100% of our net capital gain. As a REIT taxable income, we generally will notwould be subject to federal and state corporate income tax on income that we distribute to our stockholders.the undistributed income. If we fail to qualify as a REIT in any taxable year, we will then be subject to federal income taxes on our taxable income for that year and for the four years following the year during which qualification is lost, unless the Internal Revenue Service grants us relief under certain statutory provisions. Such an event could materially affect our net income and net cash available for distribution to our stockholders. However, we believe that we are organized and operate in such a manner as to qualify for treatment as a REIT for federal income tax purposes.
The TRS Entities are wholly owned subsidiaries of Columbia Property Trust and are organized as Delaware limited liability companies. The TRS Entities, among other things, provide tenant services that Columbia Property Trust,we, as a REIT, cannot otherwise provide. We have elected to treat the TRS Entities as taxable REIT subsidiaries. We may perform certain additional, noncustomary services for tenants of our buildings through the TRS Entities; however, any earnings related to such services are subject to federal and state income taxes.
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In addition, for us to continue to qualify as a REIT, we must limit our investments in taxable REIT subsidiaries to 25%20% of the value of our total assets. Deferred tax assets and liabilities are established for temporary differences between the financial reporting basis and the tax basis of assets and liabilities at the enacted rates expected to be in effect when the temporary differences reverse.
No provisions for federal income taxes have been made in our accompanying consolidated financial statements, other than the provisions relating to the TRS Entities, as we made distributions in excess of or equal to taxable income for the periods presented. We are subject to certain state and local taxes related to property operations in certain locations, which have been provided for in our accompanying consolidated financial statements.


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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, 2016.2018. As described in Note 2, Summary of Significant Accounting Policies, to the accompanying consolidated financial statements, we adopted ASC 842 during the quarter ended March 31, 2019.

Related-Party Transactions
During the nine months ended September 30, 20172019 and 2016,2018, we did not have any related-party transactions, except as described in Note 4, Unconsolidated Joint Ventures, of the accompanying consolidated financial statements.

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

Subsequent Events
We have evaluated subsequent events in connection with the preparation of the consolidated financial statements and notes thereto included in this report on Form 10-Q, and noted the following in additionsubsequent event:
On October 16, 2019, we entered into a contribution agreement (the "Contribution Agreement") to those disclosed elsewhere in this report:
Acquisition of 245-249 West 17th Street & 218 West 18th Street, as described in Note 3, acquire Normandy Real Estate Transactions, Management, LLC, a developer, operator, and investment manager of office and mixed-use assets in New York, Boston, and Washington, D.C. for approximately $100 million, exclusive of transaction and closing costs (the "Purchase Price"). The Contribution Agreement contains certain customary representations, warranties, covenants, indemnities and termination rights for a transaction of this nature. This transaction is expected to close in 2019, pending the accompanying consolidated financial statements;completion of customary closing conditions.
The Purchase Price will be comprised of two components: an approximately $13.5 million cash payment, and
the issuance of 3,264,151 Series A Convertible, Perpetual Preferred Units at a strike price of $26.50 per share (the "Preferred OP Units") of Columbia Property Trust OP at the Closing. The Preferred OP Units will be convertible into newly issued common units of Columbia Property Trust OP, which are convertible into shares of Columbia Property Trust's common stock, subject to certain terms and conditions.
Acquisition of investment in 1800 M Street through a joint venture, as described in Note 3, Real Estate Transactions, of the accompanying consolidated financial statements.

ITEM 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
As a result of certain of our outstanding debt facilities, we are exposed to interest rate changes. Our interest rate risk management objectives are to limit the impact of interest rate changes on earnings and cash flow, primarily through a low to moderate level of overall borrowings. However, we 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
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periods. Fluctuations in LIBOR may affect the amount of interest expense we incur on borrowings indexed to LIBOR, such as borrowings under the Revolving Credit Facility and the $300 Million Term Loan, which bear interest at the applicable LIBOR rate, as defined in the credit agreements, plus an applicable margin that is subject to adjustment based on our credit ratings.
Additionally, we have entered into interest rate swaps and may enter into other interest rate swaps, caps, or other arrangements to mitigate our interest rate risk on a related financial instrument. We do not currently enter into derivative or interest rate transactions for speculative purposes; however, at times certain of our derivatives may not qualify for hedge accounting treatment. All of our debt was entered into for other-than-trading purposes.
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, as of September 30, 2019, only certain borrowings under 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 hasand $300 million of the borrowings under the Revolving Credit Facility have 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.; and the $300 Million Term Loan remained undrawn.

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As of September 30, 2017,2019, we had no$300.0 million in outstanding borrowings under the Revolving Credit Facility; $150.0 million outstanding on the $150 Million Term Loan; $300.0 million outstanding on the $300 Million Term Loan; $349.6$349.7 million in 2025 Bonds Payable outstanding; $348.8$349.1 million in 2026 Bonds Payable outstanding; and $73.0millionno borrowings outstanding on fixed-rate, term mortgage loans.our $300 Million Term Loan. The amounts outstanding on our Revolving Credit Facility in the future will largely depend upon future acquisition and disposition activity. The weighted-average interest rate of all our consolidated debt instruments was 3.72%3.41% as of September 30, 2017.2019.
Approximately $921.4 millionAll of our $1,148.8 million total debt outstanding as of September 30, 2017,2019, is subject to fixed rates, either directly or when coupled with an interest rate swap agreement. As of September 30, 2017,2019, these balances incurred interest expense at an average interest rate of 4.17%3.41% and have expirations ranging from 20172022 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 a fixed rate of 5.07%.; and our 799 Broadway Joint Venture holds a $108.4 million construction note, which bears interest at a floating rate of 6.29% as of September 30, 2019. Adjusting for 51%our ownership share of the debt at the Market Square Joint Venture, which we own through anthese unconsolidated joint venture,ventures, our weighted-average interest rate of all of our debt instruments is 3.88%. None of the other joint venture owned properties have mortgage debt.
We do not believe there is any exposure to increases in interest rates related to the capital lease obligations of $120.0 million3.73% at September 30, 2017, as the obligations are at fixed interest rates.2019.

ITEM 4.CONTROLS AND PROCEDURES
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 30, 2017,2019, 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
PART II.OTHER INFORMATION

ITEM 1.LEGAL PROCEEDINGS
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
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 except as discussed below, for the year ended December 31, 2016.2018.
The Normandy transaction may not be completed on the terms or timeline currently contemplated, or at all.
The completion of the Normandy transaction is subject to certain conditions, (i) accuracy of each party's representations, subject in most cases to materiality or material adverse effect qualifications, and receipt by each party of a certificate to such effect; (ii) material compliance with each party’s covenants; (iii) receipt of required consents from third parties; and (iv) repayment of certain indebtedness and extinguishment of certain guarantees. We cannot provide assurances that the Normandy transaction will be consummated on the terms or timeline currently contemplated, or at all.
Failure to complete the Normandy transaction could adversely affect our stock price and future business and financial results.
If the Normandy transaction is not completed, our ongoing business may be adversely affected, and we will be subject to numerous risks, including the following:
•having to pay substantial costs relating to the Normandy transaction, such as legal, accounting, financial advisor, and integration costs that have already been incurred or will continue to be incurred until the closing;
•our management focusing on the Normandy transaction instead of pursuing other opportunities that could be beneficial to us without realizing any of the benefits of completing the Normandy transaction; and
•reputational harm due to the adverse perception of any failure to successfully complete the Normandy transaction.
If the Normandy transaction is not completed, we cannot assure our stockholders that these risks will not materialize and will not materially affect our business, financial results, and stock price.
We may be unable to integrate the business of Normandy successfully or realize the anticipated synergies and related benefits of our Normandy transaction or do so within the anticipated time frame.
The ongoing integration of the Normandy business into our own will require significant management and resources. We may encounter difficulties in the integration process or in realizing any of the expected benefits from the acquisition, including the following:
•the inability to successfully combine our business and Normandy's business in a manner that permits us to achieve the synergies anticipated to result from the acquisition, which would result in some anticipated benefits of the acquisition not being realized in the time frame currently anticipated or at all;
•the complexities associated with integrating personnel;
•the additional complexities of combining two companies with different histories, cultures, regulatory restrictions, markets, and customer bases;
•our failure to retain key employees;
•potential unknown liabilities and unforeseen increased expenses, delays, or regulatory conditions associated with the acquisition; and
•performance shortfalls as a result of the diversion of management's attention caused by completing the acquisition.
For all these reasons, it is possible that the integration process could result in the distraction of our management; the disruption of our ongoing business; or inconsistencies in our services, standards, controls, procedures, and policies; any of which could adversely affect our ability to maintain relationships with tenants, customers, vendors, and employees.

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ITEM 2.UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
(a)During the quarter ended September 30, 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 2015 Stock Repurchase Program, which provided for Columbia Property Trust to buy up to $200 million of our common stock over a two-year period, which expired on September 4, 2017.

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
(a)During the quarter ended September 30, 2019, we did not sell any equity securities that were not registered under the Securities Act of 1933.
(b)Not applicable.
(c)On September 4, 2017, our board of directors approved the 2017 Stock Repurchase Program, which provides for Columbia Property Trust to buy up to $200 million of our common stock over a two-year period, expiring on September 4, 2019.

On August 13, 2019, our board of directors extended the authority for stock repurchases and approved the 2019 Stock Repurchase Program, which provides for Columbia Property Trust to buy up to $200 million of our common stock over a two year period, expiring on September 4, 2021.
During the quarter ended September 30, 2017,2019, we repurchased and retired the followingdid not repurchase any shares in accordance with the 20152017 Stock Repurchase Program andor the 20172019 Stock Repurchase Program, as described in Note 8, Stockholders'Equity., of the accompanying financial statements.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES
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 2017 18,770
 $21.470
 18,770
 $103,069,583
(1) 
August 2017 1,107,243
 $20.992
 1,107,243
 $79,826,569
(1) 
September 2017 305,254
 $21.118
 305,254
 $194,826,742
(2) 
(a)There have been no defaults with respect to any of our indebtedness.
(1)
(b)Not applicable.

ITEM 4.  MINE SAFETY DISCLOSURES
Amounts available for future purchase for July 2017 and August 2017 relate only to our 2015 Stock Repurchase Program, which expired on September 4, 2017.
(2)
Amounts available for future purchase for September 2017 relate only to our 2017 Stock Repurchase Program, which was effective on September 4, 2017.
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 quarter of 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.
(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 5.  OTHER INFORMATION
(a)During the third quarter of 2019, there was no information that was required to be disclosed in a report on Form 8-K that was not disclosed in a report on Form 8-K.
(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.
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Table of Contents



ITEM 6. EXHIBITS
ITEM 6.EXHIBITS
(a)Exhibits
(a)Exhibits
EXHIBIT INDEX TO
THIRD QUARTER 20172019 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
2.13.1 
2.2
Agreement of Purchase and Sale of Partnership Interest in University Circle, dated as of July 6, 2017 by and between the Company and Allianz (incorporated by reference to Exhibit 2.2 to the Company’s Current Report on Form 8-K filed with the Commission on July 7, 2017).
3.1
Second Amended and Restated Articles of Incorporation as Amended by the First, Second, Third and FourthThird 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
3.3
Third Articles of Amendment (incorporated by reference to Exhibit 3.2 to the Company's Current Report on From 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 Report on Form 8-K filed with the Commission on July 1, 2014).
3.53.3 
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).
3.73.4 
4.1
4.2
4.3
4.4
4.5
4.6
10.2*31.1*
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*
32.1*
101.INS*
Inline XBRL Instance Document.Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH*Inline XBRL Taxonomy Extension Schema.
101.CAL*Inline XBRL Taxonomy Extension Calculation Linkbase.
101.DEF*Inline XBRL Taxonomy Extension Definition Linkbase.
101.LAB*Inline XBRL Taxonomy Extension Label Linkbase.
101.PRE*Inline XBRL Taxonomy Extension Presentation Linkbase.
*Filed herewith.



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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 24, 2019
COLUMBIA PROPERTY TRUST, INC.
(Registrant)
By:
Dated:October 26, 2017By:/s/ JAMES A. FLEMING
James A. Fleming

Executive Vice President and Chief Financial Officer





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