Tier Reit (TIER) 8-K Results of Operations and Financial Condition

                                             Exhibit 99.1

Supplemental Operating and Financial Data

For the Quarter Ended December 31, 2018

About the Company

TIER REIT, Inc. is a publicly traded (NYSE: TIER), self-managed, Dallas-based real estate investment trust focused on owning quality, well-managed commercial office properties in dynamic markets throughout the U.S. TIER REIT’s vision is to be the premier owner and operator of best-in-class office properties in TIER1 submarkets, which are primarily higher density and amenity-rich locations within select, high-growth metropolitan areas that offer a walkable experience to various amenities. Our mission is to provide unparalleled, TIER ONE Property Services to our tenants and outsized total return through stock price appreciation and dividend growth to our stockholders.

As of December 31, 2018, we owned interests in 19 operating office properties with approximately 7.0 million rentable square feet and two development properties that will consist of approximately 620,000 rentable square feet. As of December 31, 2018, our properties are located in five markets throughout the United States.

Board of Directors	Executive Officers and Senior Management
Richard I. Gilchrist	Scott W. Fordham
Chairman of the Board and Independent Director	Chief Executive Officer and Director
Scott W. Fordham	Dallas E. Lucas
Chief Executive Officer and Director	President and Chief Operating Officer
R. Kent Griffin, Jr.	James E. Sharp
Independent Director	Chief Financial Officer and Treasurer
Christie B. Kelly	William J. Reister
Independent Director	Chief Investment Officer and Executive Vice President
Dennis J. Martin	Telisa Webb Schelin
Independent Director	Chief Legal Officer, Executive Vice President, and Secretary
Gregory J. Whyte	Hannah Q. Wrenn
Independent Director	Chief Accounting Officer
	R. Heath Johnson
	Managing Director - Asset Management
	Dean R. Hook
	Senior Vice President - Information Technology and Property Management

Company Information
Corporate Headquarters	Website	Trading Information	Investor inquiries should be directed to:
5950 Sherry Lane, Suite 700	www.tierreit.com	Trading Symbol: TIER	Scott A. McLaughlin
Dallas, Texas 75225		New York Stock Exchange	Senior Vice President - Investor Relations
			at 972.483.2400 or ir@tierreit.com

Research Coverage
BMO Capital	Janney Montgomery Scott	JMP Securities	J.P. Morgan Securities	Robert W. Baird & Co.
John Kim	Robert Stevenson	Mitch Germain	Anthony Paolone	David Rodgers
212.885.4115	646.840.3217	212.906.3546	212.622.6682	216.737.7341

Supplemental Operating and Financial Data

For the Quarter Ended December 31, 2018

Table of Contents

Overview and Highlights
Overview	1
Financial Highlights	2-3
Consolidated Balance Sheets	4
Consolidated Statements of Operations	5
Calculations of FFO and Additional Information	6
Calculations of EBITDAre	7
Unconsolidated Entities Financial Summary	8
Same Store Analysis	9
Schedule of Properties Owned	10
Portfolio Analysis	11
Components of Net Asset Value	12
Significant Tenants	13
Industry Diversification	14
Leasing
Leasing Activity	15-16
Lease Expirations	17-18
Occupancy Trends	19
Capital Expenditures
Leasing Cost Summary	20
Development, Leasing, and Capital Expenditures Summary	21
Other Information
Potential Future Development and Redevelopment Sites	22
Summary of Development Activity	23
Properties Under Development	24-25
Acquisition and Disposition Activities	26
Summary of Financing	27
Principal Payments by Year	28
Definitions of Non-GAAP Financial Measures	29-30

Forward-Looking Statements

This supplemental operating and financial data report contains forward-looking statements within the meaning of the federal securities laws relating to the business and financial outlook of TIER REIT, Inc. that are based on current expectations, estimates, forecasts, and projections and are not guarantees of future performance. Statements contained herein may be impacted by a number of risks and uncertainties, including the company’s ability to rent space on favorable terms, its ability to address debt maturities and fund its capital requirements, its intentions to acquire, develop, or sell certain properties, the value of its assets, its anticipated capital expenditures, and other matters. Words such as “may,” "will," “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “outlook,” “would,” “could,” “should,” “objectives,” “strategies,” “opportunities,” “goals,” “position,” “future,” “vision,” “mission,” “strive,” “project,” "begin," "potential" and variations of these words and similar expressions are intended to identify forward-looking statements. Actual results may differ materially from those expressed in these forward-looking statements, and you should not place undue reliance on any such statements. A number of important factors could cause actual results to differ materially from the forward-looking statements contained in this document, as well as other factors described in the Risk Factors section of TIER REIT, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2018. Forward-looking statements in this document speak only as of the date on which such statements were made, and we undertake no obligation to update any such statements that may become untrue because of subsequent events.

Overview

For the Quarter Ended December 31, 2018

Property Results

• Occupancy at December 31, 2018, was 90.3%, reflecting an increase of 20 basis points from September 30, 2018.

• 143,000 square feet leased - 127,000 square feet of renewals, 3,000 square feet of expansions, and 13,000 square feet of new leasing.

• During the fourth quarter of 2018, we recognized $3.5 million of business interruption and other insurance proceeds as a result of Hurricane Harvey.

Real Estate Activity

• Plaza at MetroCenter, a 361,000 square foot office property located in Nashville, Tennessee, was sold on October 31, 2018, for a contract purchase price of $51.3 million.

• Domain 11 and Third + Shoal began operations during the fourth quarter of 2018. Domain 11 and Third + Shoal are both located in Austin, Texas. Domain 11 is 97.5% leased and Third + Shoal is 100% leased.

• Development on Domain 10 commenced in October 2018. Domain 10 will contain 300,000 rentable square feet and is located in Austin, Texas, adjacent to our other Domain properties. Domain 10 was 48.3% leased as of December 31, 2018, and increased to 59.9% leased subsequent to December 31, 2018.

Capital Markets Activity

• On November 2, 2018, our board of directors authorized a distribution of $0.18 per share of common stock for the fourth quarter of 2018, that was paid on December 27, 2018.

• During the three months ended December 31, 2018, we issued 130,172 shares of common stock under our at-the-market equity offering programs, for proceeds of $3.0 million, net of commissions and issuance costs, resulting in total net proceeds from equity offerings for the year of $137.9 million.

Subsequent Events

• In January 2019, leasing at Domain 10 increased to 59.9%.

• On January 31, 2019, we sold One & Two Eldridge Place and Three Eldridge Place (collectively, the “Eldridge Properties”), which are located in Houston, Texas, and contain 824,000 combined rentable square feet. In addition to the contract sales price of $78.4 million, we expect to receive additional insurance proceeds related to the loss, damage, and destruction suffered because of Hurricane Harvey and its aftermath, including a claim for the loss in value attributable to the storm. However, the ultimate timing and amounts to be collected for the remaining claims are currently undetermined.

• On February 6, 2019, our board of directors authorized a distribution of $0.18 per share of common stock for the first quarter of 2019, that will be paid on March 29, 2019.

Supplemental Operating and Financial Data 4Q’18 Page 1

Financial Highlights
(in thousands, except per share data, effective rent data, percentages, and number of properties)
	31-Dec-18			31-Dec-17			31-Dec-18			30-Sep-18			30-Jun-18			31-Mar-18			31-Dec-17
Portfolio Summary:
Total operating office properties	19			20			19			18			18			18			20
Rentable square feet (100%) (operating properties)	6,973			7,405			6,973			6,657			6,657			6,657			7,405
Rentable square feet (own %) (operating properties)	6,764			7,260			6,764			6,633			6,633			6,633			7,260
Occupancy %	90.3		%	89.1		%	90.3		%	90.1		%	89.4		%	89.4		%	89.1		%
Executed % SF leased	90.5		%	89.7		%	90.5		%	90.4		%	89.8		%	89.6		%	89.7		%
Economic % SF leased	77.1		%	84.4		%	77.1		%	86.2		%	85.3		%	86.1		%	84.4		%
Average effective rent/square foot	$	30.92		$	30.33		$	30.92		$	32.89		$	32.60		$	32.55		$	30.33
	Twelve Months Ended						Three Months Ended
	31-Dec-18			31-Dec-17			31-Dec-18			30-Sep-18			30-Jun-18			31-Mar-18			31-Dec-17
Financial Results:
Revenue	$	218,517		$	216,461		$	55,552		$	54,832		$	53,990		$	54,143		$	54,626
Property related expenses	(51,674		)	(55,921		)	(12,862		)	(13,262		)	(12,395		)	(13,155		)	(14,131		)
Real estate taxes	(35,682		)	(34,264		)	(8,625		)	(9,229		)	(9,074		)	(8,754		)	(8,512		)
Property management fees	(338		)	(232		)	(76		)	(80		)	(97		)	(85		)	(51		)
NOI	$	130,823		$	126,044		$	33,989		$	32,261		$	32,424		$	32,149		$	31,932
Base rent	$	141,814		$	150,124		$	35,381		$	35,759		$	35,556		$	35,118		$	34,122
Free rent	$	(6,677	)	$	(9,610	)	$	(2,379	)	$	(1,218	)	$	(1,776	)	$	(1,304	)	$	(1,570	)
Net income (loss) attributable to common stockholders	$	(5,021	)	$	84,286		$	(27,779	)	$	22,645		$	(8,277	)	$	8,390		$	(9,875	)
Diluted net income (loss) per common share (1)	$	(0.10	)	$	1.75		$	(0.52	)	$	0.43		$	(0.17	)	$	0.17		$	(0.21	)
FFO attributable to common stockholders	$	99,426		$	71,938		$	20,055		$	50,678		$	18,804		$	9,889		$	19,020
Diluted FFO per common share	$	1.94		$	1.50		$	0.37		$	0.96		$	0.39		$	0.20		$	0.39
FFO attributable to common stockholders, excluding certain items	$	82,139		$	75,122		$	23,054		$	20,070		$	19,521		$	19,494		$	19,374
Diluted FFO, excluding certain items, per common share	$	1.61		$	1.57		$	0.42		$	0.38		$	0.40		$	0.40		$	0.40
Adjusted EBITDAre	$	108,739		$	108,186		$	25,770		$	26,407		$	28,359		$	28,203		$	26,321
Weighted average common shares outstanding - basic	50,234			47,538			53,622			51,900			47,684			47,645			47,554
Weighted average common shares outstanding - diluted	51,125			47,883			54,536			52,617			48,534			48,300			48,207
Selected Additional Trend Information:
Renewal % based on square feet	71		%	70		%	78		%	61		%	74		%	64		%	30		%
Distributions declared on common shares	$	36,623		$	34,441		$	9,698		$	9,671		$	8,628		$	8,626		$	8,612
Annualized distribution yield (2)	3.5		%	3.5		%	3.5		%	3.0		%	3.0		%	3.9		%	3.5		%

_______________________________

(1) In periods of net loss there are no dilutive securities and diluted loss per common share is calculated using weighted average common shares outstanding - basic as the denominator.

(2) Based on the closing price of our common stock as of the last day of the associated period.

Notes:

Occupancy % represents the total square footage subject to commenced leases as of the reporting date as a percentage of the total rentable square feet (at our ownership interest).

Executed % SF leased represents the total square footage subject to commenced leases plus the square footage for currently vacant space that is subject to executed leases that have not commenced as of the reporting date as a percentage of the total rentable square feet (at our ownership interest).

Economic % SF leased represents the total square footage subject to commenced leases as of the reporting date adjusted to exclude the square footage associated with leases receiving rental abatements as a percentage of the total rentable square feet (at our ownership interest).

Average effective rent represents 12 times the sum of the monthly contractual amounts for base rent and the pro rata budgeted operating expense reimbursements, as of period end, related to leases in place as of period end, as reduced for free rent and excluding any scheduled future rent increases, as adjusted for our ownership interest, divided by the total square footage under commenced leases at period end.

This section includes non-GAAP financial measures, which are accompanied by what we consider the most directly comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the United States (“GAAP”). Quantitative reconciliations of the differences between the non-GAAP financial measures presented and the most directly comparable GAAP financial measures are shown on pages 6-7. A description of the non-GAAP financial measures we present and a statement of the reasons why management believes the non-GAAP measures provide useful information to investors about the Company’s financial condition and results of operations can be found on pages 29-30.

Supplemental Operating and Financial Data 4Q’18 Page 2

Financial Highlights (continued)
(in thousands, except stock prices, percentages, and ratios)
	31-Dec-18			31-Dec-17			31-Dec-18			30-Sep-18			30-Jun-18			31-Mar-18				31-Dec-17
Selected Balance Sheet Items:
Total book value of real estate	$	1,365,084		$	1,275,953		$	1,365,084		$	1,386,255		$	1,434,814		$	1,430,355			$	1,275,953
Cash and cash equivalents	$	30,741		$	13,800		$	30,741		$	5,192		$	8,359		$	10,183			$	13,800
Unconsolidated cash and cash equivalents (at ownership %)	$	345		$	1,435		$	345		$	550		$	327		$	282			$	1,435
Restricted cash	$	6,141		$	8,510		$	6,141		$	10,232		$	14,086		$	12,565			$	8,510
Total assets	$	1,617,551		$	1,581,138		$	1,617,551		$	1,662,342		$	1,696,121		$	1,688,999			$	1,581,138
Mortgage debt	$	141,654		$	191,339		$	141,654		$	142,162		$	280,311		$	280,689			$	191,339
Revolving credit facility and term loans	$	575,000		$	610,000		$	575,000		$	591,000		$	608,000		$	612,000			$	610,000
Unconsolidated debt (at ownership %)	$	31,474		$	52,377		$	31,474		$	26,137		$	21,248		$	16,239			$	52,377
Total liabilities	$	840,070		$	903,567		$	840,070		$	836,797		$	1,001,531		$	1,001,439			$	903,567
Capitalization:
Shares of common stock outstanding	53,840			47,623			53,840			53,491			48,575			47,656				47,623
Restricted stock units outstanding	240			228			240			351			351			356				228
Shares of restricted stock outstanding	154			181			154			260			260			265				181
	54,234			48,032			54,234			54,102			49,186			48,277			��	48,032
High stock price	$	24.98		$	20.72		$	24.32		$	24.98		$	24.22		$	20.51			$	20.72
Low stock price	$	17.04		$	15.96		$	19.59		$	22.66		$	18.06		$	17.04			$	18.83
Average closing stock price	$	21.49		$	18.29		$	22.40		$	23.67		$	20.81		$	19.01			$	19.71
Closing stock price	$	20.63		$	20.39		$	20.63		$	24.10		$	23.78		$	18.48			$	20.39
Market capitalization (1)	$	1,118,847		$	979,372		$	1,118,847		$	1,303,858		$	1,169,643		$	892,159			$	979,372
Total debt (2)	$	748,128		$	853,716		$	748,128		$	759,299		$	909,559		$	908,928			$	853,716
Net debt (3)	$	717,042		$	838,481		$	717,042		$	753,557		$	900,873		$	898,463			$	838,481
Total capitalization	$	1,866,975		$	1,833,088		$	1,866,975		$	2,063,157		$	2,079,202		$	1,801,087			$	1,833,088
	Twelve Months Ended						Three Months Ended
	31-Dec-18			31-Dec-17			31-Dec-18			30-Sep-18			30-Jun-18			31-Mar-18				31-Dec-17
Ratios:
NOI margin % (4)	59.9		%	58.2		%	61.2		%	58.8		%	60.1		%	59.4		%		58.5		%
Normalized fixed charge coverage (5)	3.06			2.95			3.18			3.06			3.00			3.00				2.83
Normalized interest coverage (5)	3.19			3.07			3.39			3.14			3.12			3.13				2.94
Net debt/adjusted annualized estimated full period EBITDAre from properties owned at period end (5)	N/A			N/A			7.03x			7.15x			7.94x			8.34x				7.96x
Net debt/adjusted annualized estimated full period EBITDAre from properties owned at period end, including development properties (5) (6)	N/A			N/A			6.12x			6.22x			7.13x			7.67x				7.47x
(1) Market capitalization is equal to outstanding shares (common stock, restricted stock, and restricted stock units, as if converted) times the closing price of our common stock as of the last day of the associated period.
(2) Includes book value of mortgage debt, the revolving credit facility and term loans, and unconsolidated debt (at ownership %).
(3) Total debt less cash and cash equivalents and unconsolidated cash and cash equivalents (at ownership %).
(4) NOI margin % is equal to NOI divided by revenue.
(5) See page 7 for more detailed information.
(6) Includes estimated stabilized NOI for development properties, to the extent of percentage of completion of the respective developments based on spend to date.

Supplemental Operating and Financial Data 4Q’18 Page 3

Consolidated Balance Sheets
(in thousands, except share and per share data)
		31-Dec-18			30-Sep-18			30-Jun-18			31-Mar-18			31-Dec-17
Assets
	Real estate
	Land	$	154,422		$	150,473		$	156,517		$	156,577		$	139,951
	Land held for development	36,830			45,059			45,059			45,059			45,059
	Buildings and improvements, net	1,132,428			1,097,613			1,160,273			1,177,433			1,061,418
	Real estate under development	41,404			93,110			72,965			51,286			29,525
	Total real estate	1,365,084			1,386,255			1,434,814			1,430,355			1,275,953
	Cash and cash equivalents	30,741			5,192			8,359			10,183			13,800
	Restricted cash	6,141			10,232			14,086			12,565			8,510
	Accounts receivable, net	67,335			69,592			80,755			76,385			81,129
	Prepaid expenses and other assets	11,376			19,357			17,124			14,238			28,112
	Investments in unconsolidated entities	32,746			32,112			31,714			31,314			31,852
	Deferred financing fees, net	2,756			2,985			3,211			3,426			1,387
	Acquired above-market leases, net	—			20			180			288			419
	Other lease intangibles, net	101,372			103,511			105,878			110,245			86,628
	Assets associated with real estate held for sale	—			33,086			—			—			53,348
Total assets		$	1,617,551		$	1,662,342		$	1,696,121		$	1,688,999		$	1,581,138
Liabilities and equity
Liabilities
	Mortgage debt	$	141,654		$	142,162		$	280,311		$	280,689		$	191,339
	Unsecured term loans	575,000			575,000			575,000			575,000			575,000
	Unsecured revolving credit facility	—			16,000			33,000			37,000			35,000
	Unamortized debt issuance costs	(1,899		)	(2,029		)	(2,051		)	(2,156		)	(6,801		)
	Total notes payable, net	714,755			731,133			886,260			890,533			794,538
	Accounts payable and accrued liabilities	91,548			74,560			82,816			76,144			81,166
	Acquired below-market leases, net	22,651			24,312			25,910			27,684			17,942
	Other liabilities	11,116			6,471			6,545			7,078			7,567
	Obligations associated with real estate held for sale	—			321			—			—			2,354
Total liabilities		840,070			836,797			1,001,531			1,001,439			903,567
Commitments and contingencies
Equity
	Preferred stock	—			—			—			—			—
	Convertible stock	—			—			—			—			—
	Common stock	5			5			5			5			5
	Additional paid-in capital	2,749,106			2,747,825			2,632,635			2,610,288			2,609,540
	Cumulative distributions and net loss attributable to common stockholders	(1,977,969		)	(1,940,492		)	(1,953,466		)	(1,936,561		)	(1,936,960		)
	Accumulated other comprehensive income	3,409			15,262			12,462			10,479			4,218
	Stockholders’ equity	774,551			822,600			691,636			684,211			676,803
	Noncontrolling interests	2,930			2,945			2,954			3,349			768
Total equity		777,481			825,545			694,590			687,560			677,571
Total liabilities and equity		$	1,617,551		$	1,662,342		$	1,696,121		$	1,688,999		$	1,581,138
Common stock, number of shares issued and outstanding		53,839,766			53,490,819			48,574,724			47,655,669			47,623,324

Supplemental Operating and Financial Data 4Q’18 Page 4

	Consolidated Statements of Operations
	(in thousands, except share and per share amounts)
		Twelve Months Ended						Three Months Ended
		31-Dec-18			31-Dec-17			31-Dec-18			30-Sep-18			30-Jun-18			31-Mar-18			31-Dec-17
Revenue
	Rental income	$	208,147		$	204,548		$	52,548		$	52,570		$	51,088		$	51,941		$	52,362
	Straight-line rent and lease incentive revenue	3,135			7,312			1,229			453			862			591			978
	Above- and below-market rent amortization	6,114			3,895			1,640			1,533			1,665			1,276			1,032
	Lease termination fees	1,121			706			135			276			375			335			254
	Total revenue	218,517			216,461			55,552			54,832			53,990			54,143			54,626
Expenses
	Property related expenses	51,674			55,921			12,862			13,262			12,395			13,155			14,131
	Real estate taxes	35,682			34,264			8,625			9,229			9,074			8,754			8,512
	Property management fees	338			232			76			80			97			85			51
	Total property operating expenses	87,694			90,417			21,563			22,571			21,566			21,994			22,694
	Interest expense	27,890			30,385			5,392			6,782			8,011			7,705			7,534
	Interest rate hedge ineffectiveness income	—			(253		)	—			—			—			—			(262		)
	Amortization of deferred financing costs	1,481			3,444			360			359			358			404			883
	Total interest expense	29,371			33,576			5,752			7,141			8,369			8,109			8,155
	Asset impairment losses	41,564			5,250			38,146			3,418			—			—			5,250
	General and administrative	21,785			21,446			5,777			5,128			5,377			5,503			4,956
	Real estate depreciation and amortization	100,671			94,296			24,390			24,770			27,011			24,500			23,655
	Depreciation and amortization - non-real estate assets	365			458			62			64			123			116			133
	Total expenses	281,450			245,443			95,690			63,092			62,446			60,222			64,843
	Interest and other income	784			1,359			140			49			550			45			88
	Loss on early extinguishment of debt	(8,988		)	(545		)	—			—			—			(8,988		)	—
	Gain on troubled debt restructuring	31,006			—			—			31,006			—			—			—
	Gain (loss) on sale of assets	26,828			92,396			14,904			—			(90		)	12,014			384
	Hurricane-related loss	(3,000		)	—			(3,000		)	—			—			—			—
Income (loss) before income taxes, equity in operations of investments. and gain (loss) on remeasurement of investment in unconsolidated entities		(16,303		)	64,228			(28,094		)	22,795			(7,996		)	(3,008		)	(9,745		)
	Provision for income taxes	(834		)	(468		)	(197		)	(228		)	(214		)	(195		)	(171		)
	Equity in operations of investments	718			6,399			431			—			—			287			32
	Gain (loss) on remeasurement of investment in unconsolidated entities	11,090			14,168			—			—			(152		)	11,242			—
Net income (loss)		(5,329		)	84,327			(27,860		)	22,567			(8,362		)	8,326			(9,884		)
	Noncontrolling interests	308			(41		)	81			78			85			64			9
Net income (loss) attributable to common stockholders		$	(5,021	)	$	84,286		$	(27,779	)	$	22,645		$	(8,277	)	$	8,390		$	(9,875	)
Weighted average common shares outstanding - basic		50,233,663			47,537,758			53,621,536			51,899,779			47,684,152			47,645,050			47,553,564
Weighted average common shares outstanding - diluted (1)		50,233,663			47,882,642			53,621,536			52,616,570			47,684,152			48,299,882			47,553,564
Basic net income (loss) per common share		$	(0.10	)	$	1.76		$	(0.52	)	$	0.43		$	(0.17	)	$	0.18		$	(0.21	)
Diluted net income (loss) per common share (1)		$	(0.10	)	$	1.75		$	(0.52	)	$	0.43		$	(0.17	)	$	0.17		$	(0.21	)
Distributions declared per common share		$	0.72		$	0.72		$	0.18		$	0.18		$	0.18		$	0.18		$	0.18
(1)	In periods of net loss there are no dilutive securities and diluted net loss per common share is calculated using weighted average common shares outstanding - basic as the denominator.

Supplemental Operating and Financial Data 4Q’18 Page 5

Calculations of FFO and Additional Information
(in thousands, except per share data)
		Twelve Months Ended						Three Months Ended
		31-Dec-18			31-Dec-17			31-Dec-18			30-Sep-18			30-Jun-18			31-Mar-18			31-Dec-17
Net income (loss)		$	(5,329	)	$	84,327		$	(27,860	)	$	22,567		$	(8,362	)	$	8,326		$	(9,884	)
Noncontrolling interests		308			(41		)	81			78			85			64			9
Net income (loss) attributable to common stockholders		(5,021		)	84,286			(27,779		)	22,645			(8,277		)	8,390			(9,875		)
Adjustments (1):
	Real estate depreciation and amortization from consolidated properties	100,671			94,296			24,390			24,770			27,011			24,500			23,655
	Real estate depreciation and amortization from unconsolidated properties	747			1,377			356			—			—			391			391
	Real estate depreciation and amortization - noncontrolling interest	(2,722		)	—			(963		)	(544		)	(782		)	(433		)	—
	Impairment of depreciable real estate assets	41,564			5,250			38,146			3,418			—			—			5,250
	Loss (gain) on sale of depreciable real estate	(26,828		)	(99,109		)	(14,904		)	—			90			(12,014		)	(384		)
	Loss (gain) on remeasurement of investment in unconsolidated entities	(11,090		)	(14,168		)	—			—			152			(11,242		)	—
	Noncontrolling interests	2,105			6			809			389			610			297			(17		)
FFO attributable to common stockholders		99,426			71,938			20,055			50,678			18,804			9,889			19,020
Adjustments (1):
	Severance charges	127			451			—			—			108			19			—
	Interest rate hedge ineffectiveness income (2)	—			(253		)	—			—			—			—			(262		)
	Loss on early extinguishment of debt	8,988			545			—			—			—			8,988			—
	Gain on troubled debt restructuring	(31,006		)	—			—			(31,006		)	—			—			—
	Hurricane-related loss	3,000			—			3,000			—			—			—			—
	Default interest (3)	1,599			2,443			—			388			609			602			616
	Noncontrolling interests	5			(2		)	(1		)	10			—			(4		)	—
FFO attributable to common stockholders, excluding certain items		$	82,139		$	75,122		$	23,054		$	20,070		$	19,521		$	19,494		$	19,374
Recurring capital expenditures (1)		$	(14,860	)	$	(28,131	)	$	(3,079	)	$	(3,252	)	$	(2,337	)	$	(6,192	)	$	(6,109	)
Straight-line rent adjustments (1)		$	(5,679	)	$	(10,743	)	$	(2,396	)	$	(769	)	$	(1,165	)	$	(1,349	)	$	(2,088	)
Above- and below-market rent amortization (1)		$	(5,994	)	$	(3,897	)	$	(1,612	)	$	(1,503	)	$	(1,634	)	$	(1,245	)	$	(1,032	)
Amortization of deferred financing costs (1)		$	1,537		$	3,639		$	384		$	359		$	358		$	436		$	915
Amortization of restricted shares and units		$	4,569		$	4,081		$	1,199		$	1,206		$	1,164		$	1,000		$	1,071
Depreciation and amortization - non-real estate assets		$	365		$	458		$	62		$	64		$	123		$	116		$	133
Weighted average common shares outstanding - basic		50,234			47,538			53,622			51,900			47,684			47,645			47,554
Weighted average common shares outstanding - diluted		51,125			47,883			54,536			52,617			48,534			48,300			48,207
Diluted FFO per common share		$	1.94		$	1.50		$	0.37		$	0.96		$	0.39		$	0.20		$	0.39
Diluted FFO, excluding certain items, per common share		$	1.61		$	1.57		$	0.42		$	0.38		$	0.40		$	0.40		$	0.40
We provided rent abatements and concessions to tenants at the Eldridge Properties as a result of Hurricane Harvey through the second quarter of 2018. The rent abatements and concessions were offset by business interruption and other insurance proceeds, net of a deductible and estimated saved expenses as detailed below:
Rent abatements		$	(4,683	)	$	(7,037	)	$	—		$	—		$	(775	)	$	(3,908	)	$	(5,116	)
Business interruption and other insurance proceeds, net		$	7,876		$	6,221		$	3,462		$	719		$	358		$	3,337		$	6,221

(1) Includes our pro rata share of consolidated and unconsolidated amounts, including for our period of ownership of properties sold.

(2) Interest rate swaps are adjusted to fair value through other comprehensive income (loss). However, because our interest rate swaps do not have a LIBOR floor while the hedged debt is subject to a LIBOR floor, the portion of the change in fair value of our interest rate swaps attributable to this mismatch is reclassified to interest rate hedge ineffectiveness income within “interest expense” on our consolidated statements of operations. We adopted new accounting guidance on January 1, 2018, that eliminates the requirement to separately measure and report hedge ineffectiveness income.

(3) We had a non-recourse loan in default that subjected us to incur default interest at a rate that was 500 basis points higher than the stated interest rate. The ownership of this property was conveyed to the lender in August 2018.

For additional information regarding the non-GAAP measures, see pages 29-30.

Supplemental Operating and Financial Data 4Q’18 Page 6

Calculations of EBITDAre
(in thousands, except ratios)
		Three Months Ended
		31-Dec-18			30-Sep-18			30-Jun-18			31-Mar-18			31-Dec-17
Net income (loss)		$	(27,860	)	$	22,567		$	(8,362	)	$	8,326		$	(9,884	)
Adjustments:
	Interest expense:
	Interest expense - consolidated	5,392			6,782			8,011			7,705			7,534
	Interest expense - unconsolidated entities	193			—			—			360			338
	Interest rate hedge ineffectiveness income (1)	—			—			—			—			(262		)
	Amortization of deferred financing costs - consolidated	360			359			358			404			883
	Amortization of deferred financing costs - unconsolidated entities	24			—			—			32			32
	Total interest expense	5,969			7,141			8,369			8,501			8,525
	Tax provision - consolidated	197			228			214			195			171
	Tax provision - unconsolidated entities	—			—			—			14			1
	Depreciation and amortization - consolidated	24,452			24,834			27,134			24,616			23,788
	Depreciation and amortization - unconsolidated entities	356			—			—			391			391
	Asset impairment losses	38,146			3,418			—			—			5,250
	Loss (gain) on sale of real estate	(14,904		)	—			90			(12,014		)	(384		)
	Loss (gain) on remeasurement of investment in unconsolidated entities	—			—			152			(11,242		)	—
EBITDAre		26,356			58,188			27,597			18,787			27,858
Adjustments:
	Loss on early extinguishment of debt	—			—			—			8,988			—
	Hurricane-related loss	3,000			—			—			—			—
	Gain on troubled debt restructuring	—			(31,006		)	—			—			—
	Non-cash write-off (recoveries), net of tenant receivables	(14		)	(56		)	237			—			19
	Rent abatements (recoveries), net, due to Hurricane Harvey (2)	(3,572		)	(719		)	417			409			(1,556		)
	Severance charges	—			—			108			19			—
Adjusted EBITDAre		25,770			26,407			28,359			28,203			26,321
Adjustments:
	EBITDAre from properties disposed before period end	(268		)	(61		)	(4		)	(2,504		)	5
	Full quarter EBITDAre adjustment for acquired properties	—			—			—			1,223			—
Adjusted estimated full period EBITDAre from properties  owned at period end		$	25,502		$	26,346		$	28,355		$	26,922		$	26,326
Fixed charges
	Interest expense	$	5,969		$	7,141		$	8,369		$	8,501		$	8,525
	Interest rate hedge ineffectiveness income (1)	—			—			—			—			262
	Default interest expense (3)	—			(388		)	(609		)	(602		)	(616		)
	Capitalized interest incurred (4)	1,628			1,644			1,318			1,103			782
	Normalized interest expense	7,597			8,397			9,078			9,002			8,953
	Principal payments (excludes debt payoff)	508			239			378			384			355
Normalized fixed charges		$	8,105		$	8,636		$	9,456		$	9,386		$	9,308
Normalized interest coverage (5)		3.39			3.14			3.12			3.13			2.94
Normalized fixed charge coverage (5)		3.18			3.06			3.00			3.00			2.83

(1) Interest rate swaps are adjusted to fair value through other comprehensive income (loss). However, because our interest rate swaps do not have a LIBOR floor while the hedged debt is subject to a LIBOR floor, the portion of the change in fair value of our interest rate swaps attributable to this mismatch is reclassified to interest rate hedge ineffectiveness income. We adopted new accounting guidance on January 1, 2018, that eliminates the requirement to separately measure and report hedge ineffectiveness income.

(2) Reflects rent abatements, net of business interruption and other insurance recoveries and an insurance deductible, following Hurricane Harvey.

(3) We had a non-recourse loan in default that subjected us to incur default interest at a rate that was 500 basis points higher than the stated interest rate. The ownership of this property was conveyed to the lender in August 2018.

(4) Excludes capitalized interest funded from construction loans.

(5) Normalized interest coverage is equal to adjusted EBITDAre divided by normalized interest expense. Normalized fixed charge coverage is equal to adjusted EBITDAre divided by normalized fixed charges.

For additional information regarding the non-GAAP measures, see pages 29-30.

Supplemental Operating and Financial Data 4Q’18 Page 7

Unconsolidated Entities Financial Summary
at TIER REIT Ownership Share
As of and for the Quarter Ended December 31, 2018
(dollars in thousands)
		Third + Shoal
Ownership % during the period		47.50%
Ownership % at period end		47.50%
Results of Operations
Straight-line rent and lease incentive revenue		$	846
Other income		364
	Total revenue	1,210
Property related expenses		133
Real estate taxes		73
	NOI	1,004
Interest expense		193
Amortization of deferred financing costs		24
Real estate depreciation and amortization		356
	Net income	431
Adjustments:
	Real estate depreciation and amortization	356
Funds from operations		$	787
Balance Sheet Information
Real estate book value		$	62,911
Accumulated depreciation and amortization		(806		)
Real estate book value after depreciation and amortization		$	62,105
Cash and cash equivalents		$	345
Assets		$	66,802
Mortgage debt		$	31,474
TIER REIT’s equity interest in investment		$	26,351
Basis difference		6,395
Carrying value of TIER REIT’s investment		$	32,746
________________________________
Notes:
Investments in unconsolidated entities consist of our noncontrolling interest in properties accounted for using the equity method. Multiplying each financial statement line item by the associated ownership percentage and adding those amounts to consolidated totals may not accurately depict the legal and economic implications of holding a noncontrolling interest in an investee entity.

Supplemental Operating and Financial Data 4Q’18 Page 8

Same Store Analysis
(in thousands, except property count and percentages)
	Three Months Ended											Twelve Months Ended
Same Store NOI:	31-Dec-18			31-Dec-17			Favorable/ (Unfavorable)					31-Dec-18			31-Dec-17			Favorable/ (Unfavorable)
Same Store Revenue:
Rental revenue	$	48,426		$	45,828		$	2,598				$	173,979		$	166,129		$	7,850
Less: Lease termination fees	(135		)	(254		)	119					(1,121		)	(461		)	(660		)
	48,291			45,574			2,717			6.0	%	172,858			165,668			7,190			4.3	%
Same Store Expenses:
Property operating expenses (less tenant improvement demolition costs)	11,464			10,525			(939		)	(8.9	)%	42,673			39,537			(3,136		)	(7.9	)%
Real estate taxes	7,483			7,629			146			1.9	%	28,629			28,876			247			0.9	%
Property management fees	25			25			—			—	%	101			91			(10		)	(11.0	)%
Property expenses	18,972			18,179			(793		)	(4.4	)%	71,403			68,504			(2,899		)	(4.2	)%
Same Store NOI - consolidated properties	29,319			27,395			1,924			7.0	%	101,455			97,164			4,291			4.4	%
Same Store NOI - unconsolidated properties (at ownership %)	1,330			794			536			67.5	%	—			—			—			—	%
Same Store NOI	$	30,649		$	28,189		$	2,460		8.7	%	$	101,455		$	97,164		$	4,291		4.4	%
Same Store Cash NOI:
Same Store NOI - consolidated properties	$	29,319		$	27,395		$	1,924				$	101,455		$	97,164		$	4,291
Less:
Straight-line rent revenue adjustment	(484		)	(754		)	270					(158		)	(5,149		)	4,991
Above- and below-market rent amortization	(1,117		)	(1,121		)	4					(3,817		)	(3,883		)	66
Same Store Cash NOI - consolidated properties	27,718			25,520			2,198			8.6	%	97,480			88,132			9,348			10.6	%
Same Store Cash NOI - unconsolidated properties (at ownership %)	1,023			44			979			2,225.0	%	—			—			—			—	%
Same Store Cash NOI	$	28,741		$	25,564		$	3,177		12.4	%	$	97,480		$	88,132		$	9,348		10.6	%
Same Store occupancy % at period end (% owned)	89.3		%	89.5		%						88.3		%	88.6		%
Same Store operating properties	16											14
Same Store rentable square feet (% owned)	5,911											5,446
Reconciliation of net income (loss) to Same Store NOI and Same Store Cash NOI:
Net income (loss)	$	(27,860	)	$	(9,884	)						$	(5,329	)	$	84,327
Adjustments:
Interest expense	5,752			8,155								29,371			33,576
Asset impairment losses	38,146			5,250								41,564			5,250
Tenant improvement demolition costs	26			25								195			267
General and administrative	5,777			4,956								21,785			21,446
Depreciation and amortization	24,452			23,788								101,036			94,754
Interest and other income	(140		)	(88		)						(784		)	(1,359		)
Loss on early extinguishment of debt	—			—								8,988			545
Gain on troubled debt restructuring	—			—								(31,006		)	—
Gain on sale of assets	(14,904		)	(384		)						(26,828		)	(92,396		)
Hurricane-related loss	3,000			—								3,000			—
Provision for income taxes	197			171								834			468
Equity in operations of investments	(431		)	(32		)						(718		)	(6,399		)
Gain on remeasurement of investment in unconsolidated entities	—			—								(11,090		)	(14,168		)
Net operating income of non-same store properties	(4,561		)	(4,308		)						(28,442		)	(28,686		)
Lease termination fees	(135		)	(254		)						(1,121		)	(461		)
Same Store NOI of unconsolidated properties (at ownership %)	1,330			794								—			—
Same Store NOI	30,649			28,189								101,455			97,164
Straight-line rent revenue adjustment	(484		)	(754		)						(158		)	(5,149		)
Above- and below-market rent amortization	(1,117		)	(1,121		)						(3,817		)	(3,883		)
Cash NOI adjustments for unconsolidated properties (at ownership %)	(307		)	(750		)						—			—
Same Store Cash NOI	$	28,741		$	25,564							$	97,480		$	88,132
Our Domain 2 and Domain 7 properties (two properties in which we acquired full ownership in January 2017) are reflected above as consolidated and at 100% ownership in all periods presented. Our Domain 8 property is reflected as unconsolidated and at the prior year ownership percentage of 50% for the three-month comparison periods presented above. Domain 8 became operational in the third quarter of 2017 and we acquired full ownership on March 30, 2018. Legacy Union One was acquired in June 2017, and is included in the three-month comparison periods presented above. For additional information regarding the non-GAAP measures, see pages 29-30.
(1) We provided rent abatements and concessions to tenants at the Eldridge Properties as a result of Hurricane Harvey through the second quarter of 2018. The rent abatements and concessions were offset by business interruption and other insurance proceeds recognized, net of a deductible and estimated saved expenses. See page 6 for details. The timing difference between rent abatements and concessions provided and business interruption and other insurance proceeds recognized for the Eldridge Properties was a significant driver to the increase in Same Store NOI and Same Store Cash NOI in 2018 as compared to 2017. Excluding the Eldridge Properties, Same Store NOI and Same Store Cash NOI increases over prior year same periods would be as follows:
Increase in Same Store NOI (excluding Eldridge Properties)										1.4	%										1.7	%
Increase in Same Store Cash NOI (excluding Eldridge Properties)										4.1	%										8.7	%

Supplemental Operating and Financial Data 4Q’18 Page 9

Schedule of Properties Owned
as of December 31, 2018
(in thousands, except $/RSF and percentages)
		Rentable SF  (100%)	Rentable SF  (own %)			Average Effective Rent (own %)		Average Effective Rent $/RSF (own %)		Average Adjusted Effective Rent $/RSF (own %)		Estimated Market Rent $/RSF (own %)				% Average Effective Rent (own %)
				Occupancy % (own %)										% of NRA (own %)
Property (% owned, if not 100%)	Location
Terrace Office Park	Austin, TX	619	619	92.2	%	$	23,532	$	41.21	$	42.05	$	46.26	9.2	%	12.5	%
Third + Shoal (47.5%)	Austin, TX	353	168	99.6	%	—		$	—	$	63.07	$	70.00	2.5	%	—	%
Domain 2	Austin, TX	115	115	100.0	%	5,136		$	44.66	$	44.66	$	49.50	1.7	%	2.7	%
Domain 3	Austin, TX	179	179	100.0	%	6,756		$	37.74	$	37.74	$	43.65	2.6	%	3.6	%
Domain 4	Austin, TX	153	153	100.0	%	5,124		$	33.49	$	37.10	$	41.03	2.3	%	2.7	%
Domain 7	Austin, TX	222	222	100.0	%	10,116		$	45.57	$	45.57	$	49.28	3.3	%	5.4	%
Domain 8	Austin, TX	291	291	100.0	%	13,704		$	47.09	$	47.09	$	48.60	4.3	%	7.3	%
Domain 11	Austin, TX	324	324	97.5	%	—		$	—	$	48.34	$	49.10	4.8	%	—	%
Domain Point (90%)	Austin, TX	240	216	93.1	%	6,966		$	34.71	$	34.71	$	43.60	3.2	%	3.7	%
Austin		2,496	2,287	96.9	%	71,334		$	32.20	$	44.33	$	48.42	33.8	%	37.8	%
5950 Sherry Lane	Dallas, TX	197	197	93.9	%	7,572		$	40.93	$	41.77	$	42.28	2.9	%	4.0	%
Burnett Plaza	Fort Worth, TX	1,025	1,025	85.0	%	21,000		$	24.11	$	24.54	$	25.00	15.2	%	11.1	%
Legacy Union One	Plano, TX	319	319	100.0	%	12,262		$	38.44	$	38.44	$	41.25	4.7	%	6.5	%
Dallas/Fort Worth		1,541	1,541	89.2	%	40,834		$	29.70	$	30.08	$	31.09	22.8	%	21.6	%
One BriarLake Plaza	Houston, TX	502	502	89.2	%	13,992		$	31.23	$	45.05	$	43.41	7.4	%	7.4	%
Two BriarLake Plaza	Houston, TX	333	333	77.5	%	8,724		$	33.81	$	42.14	$	42.86	4.9	%	4.6	%
One & Two Eldridge Place (1)	Houston, TX	519	519	70.3	%	11,940		$	32.71	$	33.40	$	35.20	7.7	%	6.3	%
Three Eldridge Place (1)	Houston, TX	305	305	71.1	%	9,360		$	43.13	$	43.74	$	38.05	4.5	%	5.0	%
Houston		1,659	1,659	77.6	%	44,016		$	34.17	$	40.95	$	40.07	24.5	%	23.3	%
Bank of America Plaza	Charlotte, NC	891	891	95.6	%	22,764		$	26.72	$	26.94	$	32.50	13.2	%	12.1	%
Charlotte		891	891	95.6	%	22,764		$	26.72	$	26.94	$	32.50	13.2	%	12.1	%
Woodcrest (2)	Cherry Hill, NJ	386	386	97.2	%	9,816		$	26.18	$	26.18	$	20.74	5.7	%	5.2	%
Other		386	386	97.2	%	9,816		$	26.18	$	26.18	$	20.74	5.7	%	5.2	%
Total operating office properties		6,973	6,764	90.3	%	$	188,764	$	30.92	$	36.87	$	38.84	100.0	%	100.0	%
Development Properties				Leased %
Domain 10 (3)	Austin, TX	300	300	48.3	%
Domain 12	Austin, TX	320	320	100.0	%
(1) These properties were sold in January 2019. These properties were not classified as held for sale as of December 31, 2018, because they did not meet the accounting criteria established for such classification.
(2) Includes two properties.
(3) The percentage leased was increased to 59.9% subsequent to December 31, 2018.
Average effective rent represents 12 times the sum of the monthly contractual amounts for base rent and the pro rata budgeted operating expense reimbursements, as of period end, related to leases in place as of period end, as reduced for free rent and excluding any scheduled future rent increases, as adjusted for our ownership interest, divided by the total square footage under commenced leases at period end.
Average adjusted effective rent represents 12 times the sum of the monthly contractual amounts for base rent and the pro rata budgeted operating expense reimbursements, as of period end, related to leases in place as of period end, excluding any scheduled future rent increases, as adjusted for our ownership interest, divided by the total square footage under commenced leases at period end.

Supplemental Operating and Financial Data 4Q’18 Page 10

Portfolio Analysis
For the Three Months Ended and
as of December 31, 2018
	Number of Properties	Number of Buildings	Net Rentable Area (000’s)	Commenced % SF Leased		% of NRA		NOI ($000’s)  (1)			% of NOI
Market
Austin	9	13	2,287	96.9	%	33.8	%	$	12,986		37.5	%
Dallas/Fort Worth	3	3	1,541	89.2	%	22.8	%	6,065			17.5	%
Houston	4	5	1,659	77.6	%	24.5	%	10,089			29.2	%
Charlotte	1	1	891	95.6	%	13.2	%	4,377			12.7	%
Other	2	2	386	97.2	%	5.7	%	1,069			3.1	%
Total	19	24	6,764	90.3	%	100.0	%	34,586			100.0	%
Reconciliation to NOI (Consolidated):
Less NOI from unconsolidated properties								(1,004		)
Plus NOI from noncontrolling interest								132
Plus NOI from disposed properties								275
NOI (Consolidated)								$	33,989
Notes:
Analysis relates to operating properties owned at the end of the most recent period only.
Amounts reflect TIER REIT’s ownership %.
NOI is a non-GAAP performance measure. A calculation of NOI is presented on page 2.
(1) NOI in Houston reflects approximately $3.5 million of net business interruption and other insurance proceeds recognized in the fourth quarter of 2018 related to rent abatements and concessions provided to tenants at the Eldridge Properties in previous periods as a result of Hurricane Harvey.

Supplemental Operating and Financial Data 4Q’18 Page 11

Components of Net Asset Value
(in thousands, except percentages)
		Annualized Three Months Ended
		31-Dec-18
Consolidated total revenue		$	222,208
	Less:
	GAAP rent adjustments	(11,476		)
	Lease termination fees	(540		)
		210,192
Consolidated total property operating expenses		(86,252		)
Adjusted cash NOI		123,940
	Adjustments:
	Adjusted cash NOI from unconsolidated real estate assets, at ownership share	632
	Adjusted cash NOI from sold properties, at ownership share	(976		)
	Adjusted cash NOI from noncontrolling interest in consolidated assets	(409		)
	Adjusted cash NOI attributed to business interruption and other insurance proceeds in excess of abatements during the period at the Eldridge Properties (1)	(13,979		)
	Incremental pro forma stabilized adjusted cash NOI from executed leases at Domain 8, Domain 11, Domain 12, and Third + Shoal at ownership share	30,276
Total adjusted cash NOI at ownership share (2)		$	139,484
		31-Dec-18
Cost basis of land and development properties, at ownership share (3)		$	44,854
Other tangible assets
	Cash and cash equivalents	$	30,741
	Restricted cash	6,141
	Accounts receivable, net (excluding $51,744 of straight-line rent receivable)	15,591
	Prepaid expenses and other assets	11,376
Total other tangible assets		$	63,849
Liabilities
	Mortgage debt	$	141,654
	Unsecured term loans and revolving credit facility	575,000
	Accrued and other liabilities	102,664
	Ownership share of unconsolidated mortgage debt	31,474
	Remaining estimated cost to complete Domain 11, Domain 12, and Third + Shoal, at ownership share	114,800
Total liabilities		$	965,592
Total common shares, restricted stock, and restricted stock units outstanding		54,234
(1)	We received approximately $3.5 million of business interruption and other insurance proceeds during the quarter.
(2)	Comprised of adjusted cash NOI as detailed in the table below.

Market	Adjusted Cash NOI		%
Austin	$	71,639	51	%
Dallas	23,149		17	%
Houston	23,538		17	%
Charlotte	16,060		12	%
Other	5,098		3	%
Total	$	139,484	100	%

(3) Includes Domain 9, Domain 10, Legacy Union Two, Legacy Union Three, and Domain Blocks D & G at ownership share.

Supplemental Operating and Financial Data 4Q’18 Page 12

Significant Tenants
December 31, 2018
(in thousands, except percentages and years)
	Annualized Gross Rental Revenues		Percentage of Annualized Gross Rental Revenues			Percentage of Square Feet Leased		Weighted Average Remaining Term (Years)
					Square Feet Leased				Moody’s / S&P Credit Rating
Tenant
HomeAway	$	20,397	9	%	431	7	%	11.0	Ba1 / BBB
Encana Oil & Gas (USA) Inc.	12,271		5	%	319	5	%	8.5	Ba1 / BBB-
Facebook, Inc.	12,260		5	%	223	4	%	8.8	NR
Amazon	11,297		5	%	246	4	%	7.0	A3 / AA-
Bank of America	10,746		5	%	417	7	%	2.2	A3 / A-
Amoco	9,498		4	%	217	4	%	0.2	A1 / A-
Apache Corporation	9,350		4	%	210	3	%	5.8	Baa3 / BBB
GM Financial	8,310		4	%	326	5	%	7.1	Baa3 / BBB
Samsung Engineering America Inc.	6,005		3	%	134	2	%	7.9	NR
McDermott, Inc.	5,504		2	%	169	3	%	1.6	NR / B+
GSA	5,077		2	%	207	3	%	10.0	U.S. Government
Blackbaud, Inc.	4,819		2	%	133	2	%	4.8	NR
Time Warner Cable Inc.	4,127		2	%	112	2	%	2.0	NR
Conduent Incorporated	4,020		2	%	151	2	%	1.7	Ba3 / BB
SCOR Global Life	3,696		2	%	140	2	%	9.6	NR / AA-
Total of largest 15 tenants	$	127,377	57	%	3,435	56	%	6.3
Total all tenants	$	225,068			6,105			5.6

Notes:

The above tables set forth the Company’s 15 largest tenants including subsidiaries for the operating properties as of the date noted above, based upon annualized gross rents plus estimated operating cost recoveries in place at the end of the above noted period.

As annualized rental revenue is not derived from the historical GAAP results, historical results may differ from those set forth above.

Amounts reflect TIER REIT’s ownership %.

Supplemental Operating and Financial Data 4Q’18 Page 13

Industry Diversification (by square feet)

As of December 31, 2018

Notes:

The Company’s tenants are classified according to the U.S. Government’s North American Industrial Classification System (NAICS).

Amounts reflect TIER REIT’s ownership %.

“Other” includes 12 industry classifications.

Supplemental Operating and Financial Data 4Q’18 Page 14

Leasing Activity Summary
For the Three Months Ended
December 31, 2018
		Occupancy								Occupancy
		%		SF (000’s)	Activity for the Quarter (SF 000’s)					SF (000’s)	%		Cash Net Rent /SF						Straight-lined Net Rent /SF
Market	Rentable SF (000’s)	30-Sep-18		30-Sep-18	Expiring		Renewals	Expansions	New	31-Dec-18	31-Dec-18		Expiring		Activity		% Increase		Expiring		Activity		% Increase
Austin	2,287	96.4	%	2,205	(15	)	11	3	11	2,215	96.9	%	$	23.77	$	26.95	13	%	$	23.56	$	28.22	20	%
Dallas/Fort Worth	1,541	89.3	%	1,376	(118	)	115	—	2	1,375	89.2	%	$	15.88	$	17.66	11	%	$	15.83	$	17.63	11	%
Houston	1,659	79.4	%	1,317	(29	)	—	—	—	1,288	77.6	%	$	—	$	—	—	%	$	—	$	—	—	%
Charlotte	891	96.0	%	855	(4	)	1	—	—	852	95.6	%	$	29.22	$	29.81	2	%	$	24.86	$	30.41	22	%
Other	386	97.2	%	375	—		—	—	—	375	97.2	%	$	—	$	—	—	%	$	—	$	—	—	%
Total	6,764	90.6	%	6,128	(166	)	127	3	13	6,105	90.3	%	$	17.35	$	19.37	12	%	$	17.25	$	19.57	13	%
Year-To-Date Summary	Beginning of Period								End of Period
Q1 Activity	6,633	89.8	%	5,954	(89	)	56	1	11	5,933	89.4	%	$	21.50	$	22.78	6	%	$	20.24	$	25.61	27	%
Q2 Activity	6,633	89.4	%	5,933	(96	)	48	23	23	5,931	89.4	%	$	20.36	$	22.48	10	%	$	20.03	$	23.22	16	%
Q3 Activity	6,633	89.4	%	5,931	(74	)	26	19	75	5,977	90.1	%	$	24.56	$	24.82	1	%	$	22.71	$	24.21	7	%
Q4 Activity	6,764	90.6	%	6,128	(166	)	127	3	13	6,105	90.3	%	$	17.35	$	19.37	12	%	$	17.25	$	19.57	13	%
					(425	)	257	46	122				$	20.72	$	22.14	7	%	$	19.88	$	22.65	14	%

Notes:

Analysis relates to operating properties owned at the end of the period and reflects TIER REIT’s ownership %.

Occupancy includes all leases for tenants under lease contracts that have commenced during the period.

Rates for expiring leases relate to the lease previously occupying the specific space for which positive absorption was shown or the current lease rate if it is a first generation lease.

Net Rent is equal to the fixed base rental amount paid under the terms of the lease less any portion used to offset real estate taxes, utility charges, and other operating expenses incurred in connection with the leased space.

Cash Net Rent disregards any free rent periods. Therefore, the rate shown is first full monthly cash rent paid.

The impact of short term temporary leasing activity is excluded from the analysis of % increase of Cash Net Rent and % increase of Straight-lined Net Rent.

Supplemental Operating and Financial Data 4Q’18 Page 15

Leasing Rate Activity Summary
For the Three Months Ended
December 31, 2018
	Renewals											Expansions											New
	SF (000’s)	Cash Net Rent /SF					Straight-lined Net Rent /SF					SF (000’s)	Cash Net Rent /SF					Straight-lined Net Rent /SF					SF (000’s)	Cash Net Rent /SF					Straight-lined Net Rent /SF
Markets		Expiring		Activity			Expiring		Activity				Expiring		Activity			Expiring		Activity				Expiring		Activity			Expiring		Activity
Austin	11	$	24.00	$	24.00		$	24.40	$	26.13		3	$	28.50	$	28.50		$	29.69	$	29.69		11	$	22.40	$	29.64		$	21.19	$	29.97
Dallas/Fort Worth	115	$	15.85	$	17.50		$	15.79	$	17.48		—	$	—	$	—		$	—	$	—		2	$	18.30	$	26.50		$	18.30	$	26.19
Houston	—	$	—	$	—		$	—	$	—		—	$	—	$	—		$	—	$	—		—	$	—	$	—		$	—	$	—
Charlotte	1	$	29.22	$	29.81		$	24.86	$	30.41		—	$	—	$	—		$	—	$	—		—	$	—	$	—		$	—	$	—
Other	—	$	—	$	—		$	—	$	—		—	$	—	$	—		$	—	$	—		—	$	—	$	—		$	—	$	—
Total	127	$	16.66	$	18.16		$	16.61	$	18.33		3	$	28.50	$	28.50		$	29.69	$	29.69		13	$	21.77	$	29.15		$	20.75	$	29.39
Percentage increase (decrease)				9		%			10		%				—		%			—		%				34		%			42		%
Year-To-Date Summary:
Q1 Activity	56	$	22.63	$	23.39		$	21.46	$	26.41		1	$	27.50	$	26.00		$	27.40	$	26.50		11	$	15.12	$	19.00		$	13.34	$	21.07
Q2 Activity	48	$	19.35	$	19.80		$	18.57	$	20.96		23	$	20.66	$	25.22		$	20.61	$	26.10		23	$	22.36	$	25.20		$	22.63	$	25.04
Q3 Activity	26	$	30.93	$	26.84		$	27.22	$	27.17		19	$	24.88	$	27.82		$	24.88	$	29.12		75	$	22.28	$	23.36		$	20.60	$	21.93
Q4 Activity	127	$	16.66	$	18.16		$	16.61	$	18.33		3	$	28.50	$	28.50		$	29.69	$	29.69		13	$	21.77	$	29.15		$	20.75	$	29.39
	257	$	19.91	$	20.48		$	19.11	$	21.47		46	$	23.06	$	26.52		$	23.11	$	27.59		122	$	21.60	$	23.93		$	20.34	$	23.23
Percentage increase (decrease)				3		%			12		%				15		%			19		%				11		%			14		%
Notes:
Analysis relates to operating properties owned at the end of the period and reflects TIER REIT’s ownership %.
SF includes all leases for tenants under lease contracts that have commenced during the period.
Rates for expiring leases relate to the lease previously occupying the specific space for which positive absorption was shown or the current lease rate if it is a first generation lease.
Net Rent is equal to the fixed base rental amount paid under the terms of the lease less any portion used to offset real estate taxes, utility charges, and other operating expenses incurred in connection with the leased space.
Cash Net Rent disregards any free rent periods. Therefore, the rate shown is first full monthly cash rent paid.
The impact of short term temporary leasing activity is excluded from the analysis of % increase of Cash Net Rent and % increase of Straight-lined Net Rent.

Supplemental Operating and Financial Data 4Q’18 Page 16

Lease Expirations
For Four Quarters From January 1, 2019
(in thousands, except per SF data)
	Market	Month to Month		1Q'19		2Q'19		3Q'19		4Q'19		Grand Total
	By Square Foot
	Austin	15		8		52		5		79		159
	Dallas/Fort Worth	11		12		—		—		19		42
	Houston	4		7		—		—		—		11
	Charlotte	—		42		1		43		—		86
	Other	—		—		—		—		39		39
	Total	30		69		53		48		137		337
	By Annualized Expiring Rentals
	Austin	$	503	$	332	$	2,109	$	177	$	2,902	$	6,023
	Dallas/Fort Worth	264		409		—		—		478		1,151
	Houston	188		169		—		—		—		357
	Charlotte	—		964		63		1,032		—		2,059
	Other	—		—		—		—		1,092		1,092
	Total	$	955	$	1,874	$	2,172	$	1,209	$	4,472	$	10,682
	By Expiring Rent Per SF
	Austin	$	33.76	$	39.52	$	41.27	$	36.88	$	37.02	$	38.22
	Dallas/Fort Worth	$	23.78	$	33.52	$	—	$	—	$	25.43	$	27.34
	Houston	$	48.21	$	23.80	$	—	$	—	$	—	$	32.45
	Charlotte	$	—	$	22.79	$	45.00	$	23.83	$	—	$	23.67
	Other	$	—	$	—	$	—	$	—	$	28.29	$	28.29
	Total	$	31.83	$	27.16	$	40.98	$	25.19	$	32.64	$	31.70
Notes:
Leases with an expiration on the last day of the period are considered leased at the last day of the period (i.e., expiring on the first day of the following period).
Reflects TIER REIT’s ownership %.
Rentals shown above are the contractually obligated annualized base rent charged in the final month prior to lease termination grossed up to include current operating cost recoveries.
Annualized expiring rentals may include rent related to parking management agreements where square footage is zero.
Excludes lease expirations at the Eldridge Properties, which were sold in January 2019.

Supplemental Operating and Financial Data 4Q’18 Page 17

Lease Expirations
Annually From January 1, 2019
(in thousands, except percentage and per SF data)
	Market	2019			2020			2021			2022			2023			2024			2025			2026			2027			2028			2029+			Grand Total
	By Square Foot
	Austin	158			216			85			239			288			150			165			206			180			30			498			2,215
	Dallas/Fort Worth	42			96			72			44			164			34			27			390			319			45			142			1,375
	Houston	11			69			67			31			44			215			20			161			—			10			78			706
	Charlotte	87			29			333			17			86			37			5			25			3			190			40			852
	Other	39			244			92			—			—			—			—			—			—			—			—			375
	Total	337			654			649			331			582			436			217			782			502			275			758			5,523
	As a % of Occupied SF	6		%	12		%	12		%	6		%	10		%	8		%	4		%	14		%	9		%	5		%	14		%	100		%
	As a % of Total NRA	6		%	11		%	11		%	6		%	10		%	7		%	4		%	13		%	8		%	4		%	13		%	93		%
	By Annualized Expiring Rentals
	Austin	$	6,023		$	8,743		$	4,004		$	11,016		$	12,779		$	6,858		$	8,753		$	9,789		$	10,095		$	1,519		$	29,915		$	109,494
	Dallas/Fort Worth	1,151			3,382			2,758			1,260			5,019			1,219			829			11,293			13,242			1,406			3,399			44,958
	Houston	357			3,411			3,134			1,500			2,003			9,851			775			7,436			—			467			3,010			31,944
	Charlotte	2,059			1,022			9,345			652			3,294			576			308			1,084			149			6,651			1,843			26,983
	Other	1,092			6,716			2,545			—			—			—			—			—			—			—			4			10,357
	Total	$	10,682		$	23,274		$	21,786		$	14,428		$	23,095		$	18,504		$	10,665		$	29,602		$	23,486		$	10,043		$	38,171		$	223,736
	As a % of Total Annualized Expiring Rentals	5		%	10		%	10		%	7		%	10		%	8		%	5		%	13		%	10		%	5		%	17		%	100		%
	By Expiring Rent Per SF
	Austin	$	38.22		$	40.44		$	47.05		$	46.32		$	44.22		$	45.78		$	53.34		$	47.36		$	56.08		$	50.80		$	60.02		$	49.44
	Dallas/Fort Worth	$	27.34		$	35.23		$	38.41		$	28.31		$	30.53		$	36.07		$	30.82		$	28.96		$	41.59		$	31.24		$	23.85		$	32.69
	Houston	$	32.45		$	49.15		$	46.57		$	47.47		$	46.05		$	45.80		$	39.34		$	46.24		$	—		$	46.24		$	38.54		$	45.21
	Charlotte	$	23.67		$	35.24		$	28.06		$	39.28		$	38.13		$	15.74		$	57.04		$	43.19		$	48.06		$	34.95		$	45.51		$	31.63
	Other	$	28.29		$	27.58		$	27.37		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	20.00		$	27.60
	Total	$	31.70		$	35.59		$	33.57		$	43.59		$	39.68		$	42.44		$	49.15		$	37.85		$	46.78		$	36.52		$	50.36		$	40.51
	Notes:
	Leases with an expiration on the last day of the period are considered leased at the last day of the period (i.e., expiring on the first day of the following period).
	Reflects TIER REIT’s ownership %.
	Rentals shown above are the contractually obligated annualized base rent charged in the final month prior to lease termination grossed up to include current operating cost recoveries.
	Annualized expiring rentals may include rent related to parking management agreements where square footage is zero.
	Excludes lease expirations at the Eldridge Properties, which were sold in January 2019.

Supplemental Operating and Financial Data 4Q’18 Page 18

Occupancy Trends
	Rentable SF (000’s)	Occupancy %
Market	31-Dec-18	31-Dec-18		30-Sep-18		30-Jun-18		31-Mar-18		31-Dec-17
Austin	2,287	96.9	%	95.9	%	95.8	%	95.4	%	95.8	%
Dallas/Fort Worth	1,541	89.2	%	89.3	%	90.5	%	91.0	%	92.1	%
Houston	1,659	77.6	%	79.4	%	75.8	%	76.3	%	76.4	%
Charlotte	891	95.6	%	96.0	%	96.0	%	95.6	%	95.8	%
Other	386	97.2	%	97.2	%	97.2	%	97.2	%	97.2	%
Total	6,764	90.3	%	90.0	%	89.3	%	89.4	%	89.5	%
Notes:
Analysis relates to operating properties owned at the end of the most recent period and reflects TIER REIT’s ownership %.
Occupancy % is as of the last day of the indicated period.

Supplemental Operating and Financial Data 4Q’18 Page 19

Leasing Cost Summary
For the Three Months Ended
December 31, 2018
			Weighted Average Leasing Costs
	SF (000’s)	Wtd Avg Term (Yrs)	Per Square Foot						Per Square Foot / Year
Renewal			Comms		TI & Other		Total		Comms		TI & Other		Total
Market
Austin	11	4.2	$	0.93	$	—	$	0.93	$	0.22	$	—	$	0.22
Dallas/Fort Worth	115	1.0	$	1.18	$	0.40	$	1.58	$	0.95	$	0.08	$	1.02
Houston	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Charlotte	1	3.0	$	1.82	$	—	$	1.82	$	0.61	$	—	$	0.61
Other	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Total Current Quarter	127	1.3	$	1.16	$	0.36	$	1.52	$	0.92	$	0.29	$	1.21
Q3 2018	26	7.3	$	5.56	$	15.34	$	20.90	$	0.76	$	2.09	$	2.85
Q2 2018	48	6.7	$	6.73	$	2.02	$	8.75	$	1.01	$	0.30	$	1.31
Q1 2018	56	6.1	$	13.02	$	11.20	$	24.22	$	2.13	$	1.84	$	3.97
Year Ended 2018	257	4.0	$	5.23	$	4.55	$	9.78	$	1.18	$	0.81	$	1.99
Year Ended 2017	918	5.5	$	6.18	$	11.53	$	17.71	$	1.07	$	1.83	$	2.90
Expansion
Market
Austin	3	4.5	$	4.06	$	21.00	$	25.06	$	0.90	$	4.67	$	5.57
Dallas/Fort Worth	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Houston	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Charlotte	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Other	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Total Current Quarter	3	4.5	$	4.06	$	21.00	$	25.06	$	0.90	$	4.67	$	5.57
Q3 2018	19	5.7	$	15.57	$	34.33	$	49.90	$	2.71	$	5.98	$	8.69
Q2 2018	23	5.5	$	3.13	$	5.08	$	8.21	$	0.57	$	0.93	$	1.50
Q1 2018	1	2.9	$	8.22	$	7.32	$	15.54	$	2.84	$	2.52	$	5.36
Year Ended 2018	46	5.5	$	8.44	$	18.25	$	26.69	$	1.53	$	3.29	$	4.82
Year Ended 2017	62	5.8	$	13.24	$	21.35	$	34.59	$	2.33	$	3.69	$	6.02
New
Market
Austin	11	8.0	$	12.26	$	25.00	$	37.26	$	2.31	$	4.72	$	7.03
Dallas/Fort Worth	2	5.3	$	14.43	$	5.04	$	19.47	$	2.72	$	0.95	$	3.67
Houston	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Charlotte	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Other	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Total Current Quarter	13	7.6	$	12.59	$	21.93	$	34.52	$	1.67	$	2.90	$	4.57
Q3 2018	75	9.9	$	21.83	$	94.90	$	116.73	$	2.19	$	9.54	$	11.73
Q2 2018	23	8.1	$	9.89	$	24.04	$	33.93	$	1.22	$	2.98	$	4.20
Q1 2018	11	6.4	$	12.55	$	34.36	$	46.91	$	1.96	$	5.38	$	7.34
Year Ended 2018	122	9.0	$	17.76	$	68.30	$	86.06	$	1.93	$	7.22	$	9.15
Year Ended 2017	312	7.6	$	15.55	$	43.29	$	58.84	$	2.05	$	5.73	$	7.78
Total
Current Quarter	143	1.9	$	2.26	$	2.76	$	5.02	$	1.19	$	1.46	$	2.65
Q3 2018	120	8.7	$	17.32	$	68.07	$	85.39	$	1.98	$	7.81	$	9.79
Q2 2018	94	6.7	$	6.62	$	8.16	$	14.78	$	0.99	$	1.21	$	2.20
Q1 2018	68	6.1	$	12.87	$	14.90	$	27.77	$	2.11	$	2.44	$	4.55
Year Ended 2018	425	5.6	$	9.18	$	24.33	$	33.51	$	1.65	$	4.37	$	6.02
Year Ended 2017	1,292	6.0	$	8.78	$	19.67	$	28.45	$	1.45	$	3.26	$	4.71
Notes:
Analysis relates to operating properties owned at the end of the indicated period and reflects TIER REIT’s ownership %.

Supplemental Operating and Financial Data 4Q’18 Page 20

	Development, Leasing, and
	Capital Expenditures Summary
	(in thousands)
		For the Three Months Ended
		31-Dec-18		30-Sep-18		30-Jun-18		31-Mar-18		31-Dec-17
	Recurring capital expenditures
	Leasing costs	$	674	$	2,011	$	1,905	$	5,345	$	5,199
	Building improvements	2,405		1,241		432		847		910
	Subtotal recurring capital expenditures	3,079		3,252		2,337		6,192		6,109
	Non-recurring capital expenditures
	Building improvements (1)	3,790		2,591		772		4,461		2,751
	Leasing costs (2)	4,808		4,025		1,295		1,351		1,039
	Development (3)	36,246		30,518		26,826		29,512		24,361
	Redevelopment (4)	226		187		906		967		1,444
	Subtotal non-recurring capital expenditures	45,070		37,321		29,799		36,291		29,595
	Total capital expenditures	$	48,149	$	40,573	$	32,136	$	42,483	$	35,704
(1)	Non-recurring building improvements include costs identified as deferred capital needs at the acquisition of a property and costs incurred to improve the Eldridge Properties as a result of Hurricane Harvey, which has been identified as an unusual event. Costs incurred to improve the Eldridge Properties for such damages should be recoverable under our insurance policies and were as follows:
		$	2,807	$	2,034	$	417	$	4,461	$	2,751
(2)	Non-recurring leasing costs include costs incurred within 12 months of acquisition to lease space and costs incurred to lease space that has been vacant for at least 12 months. Cost incurred within 12 months of acquisition to lease space were as follows:
		$	706	$	371	$	—	$	—	$	—
(3)	Development includes all new construction costs related to base building and all costs associated with leasing development projects.
(4)	Redevelopment costs are for capital projects where substantial improvements are made to the property that change the character of the asset and are expected to result in development-type returns on capital.
Notes:
All amounts represent TIER REIT’s ownership %.
Leasing costs reimbursed to us by tenants when tenant improvement allowances have been exceeded are excluded from the above amounts.

Supplemental Operating and Financial Data 4Q’18 Page 21

Potential Future Development and Redevelopment Sites
December 31, 2018
		Approximate Rentable Square Feet	Month of Acquisition	Cost Basis (in millions)
Project	Acres					Comments
Development
Austin
Domain 9	2.5	330,000	Jul-15	$	8.9	Office building
Domain D & G	5.6	600,000	Jul-15	$	10.0	Office building(s)
Dallas/Fort Worth
Legacy Union Two and Legacy Union Three (95%) (1)	4.0	600,000	Jun-15	$	10.2	Office building(s)
Burnett Plaza	1.4	N/A	Jan-07	$	3.4	Planned mixed-use development and parking garage for use at Burnett Plaza
Redevelopment (2)
Austin
Domain 3 and Domain 4	8.8	2,000,000	Jul-15	N/A		Potential mixed-use redevelopment opportunity
Domain Point (90%)	9.5	1,000,000	Jan-18	N/A		Potential mixed-use redevelopment opportunity
(1) The cost basis for this less than wholly-owned project represents 100%.
(2) Excludes 0.6 million of existing rentable square feet.

Supplemental Operating and Financial Data 4Q’18 Page 22

Summary Development Activity
December 31, 2018
					Estimated Shell Delivery Date		Estimated Total Cost (in millions) (1)		Cost to Date (in millions) (1)		Estimated Stabilized NOI  (in millions)		Estimated Stabilized Cash NOI (in millions)
Project	Market	Square feet (in thousands)	% Leased	Start Date		Estimated Cost per SF
In Process:
Domain 10 (2)	Austin	300	48%	4Q’18	2Q’20	$387	$	116.2	$	16.2	$	10.4	$	10.1
Domain 12	Austin	320	100%	2Q’18	4Q’19	$379	$	121.4	$	40.2	$	11.4	$	11.4
Completed in the Past 18 Months:
Domain 8 (3)	Austin	291	100%	3Q’15	2Q’17	$290	$	84.4	$	84.4	$	11.0	$	9.6
Domain 11	Austin	324	98%	2Q’17	4Q’18	$352	$	114.2	$	89.1	$	10.7	$	10.9
Third + Shoal	Austin	353	100%	1Q’17	3Q’18	$441	$	155.7	$	137.8	$	16.4	$	16.1
(1) Reflects development cost at the asset level. Excludes basis adjustment of $6.4 million for Third + Shoal and $4.3 million for Domain 8. On March 30, 2018, we acquired the remaining 50% interest in Domain 8, increasing our ownership interest in the property to 100%.
(2) The percentage leased was increased to 60% subsequent to December 31, 2018.
(3) Estimated stabilized NOI for Domain 8 includes amortization income/(expense) as a result of stepping up our basis to fair value related to our acquisition of the remaining interest.
All amounts above are reflected at 100%.

Percent of Expected Stabilized NOI by quarter
Project	1Q'19	2Q'19	3Q’19	4Q’19	2020	2021	2022
Domain 10	—	—	—	—	51%	95%	100%
Domain 11	60%	59%	79%	79%	86%	95%	100%
Domain 12	—	—	—	46%	73%	93%	100%
Third + Shoal	42%	46%	73%	80%	100%	100%	100%
Domain 8	100%	100%	100%	100%	100%	100%	100%

Represents expected NOI as a percentage of estimated stabilized NOI based on current executed leases and other forecasted leasing.

Percent of Expected Stabilized Cash NOI by quarter
Project	1Q'19	2Q'19	3Q’19	4Q’19	2020	2021	2022
Domain 10	—	—	—	—	8%	71%	100%
Domain 11	(37)%	(40)%	33%	32%	53%	84%	100%
Domain 12	—	—	—	(21)%	(3)%	74%	100%
Third + Shoal	(44)%	(40)%	46%	67%	95%	100%	100%
Domain 8	98%	98%	100%	100%	100%	100%	100%

Represents expected adjusted cash NOI as a percentage of estimated stabilized NOI based on current executed leases and other forecasted leasing. Adjusted cash NOI excludes non-cash revenue items including straight-line rent adjustments and the amortization of above- and below-market rent.

Negative percentages occur when expenses are incurred for tenants during a free rent period.

Supplemental Operating and Financial Data 4Q’18 Page 23

Property Under Development

Domain 10

Austin, Texas

(rendering)

Property Description

Domain 10 is a 15-story, Class A office building currently under development located within The Domain in Austin, Texas.  It offers 300,000 square feet of office space, along with dramatic views of the surrounding Domain community and Texas Hill Country.  Domain 10 was designed to achieve a minimum LEED Silver and Energy Star designations. Development on Domain 10 commenced in October 2018.

Property Highlights

The Domain is the epitome of upscale “live, work, play,” spread across 300 acres in Northwest Austin.  The community currently includes over two million square feet of office space that commands the highest Class A office rents in Austin outside the city’s CBD.  In addition to office space, The Domain offers nearly two million square feet of retail, 775 hotel rooms, and over 4,000 apartment units.

Property Facts

Submarket	The Domain
Floors	8 Floors Rentable Space/7 Floors Parking
Approximate Rentable SF	300,000
Estimated Operating Expenses per SF	$16.58
Estimated Shell Delivery Date to Tenants	2Q’20
Estimated Project Cost at Completion	$116,200,000
Percentage Owned	100	%
Percentage Leased	59.9	%

Supplemental Operating and Financial Data 4Q’18 Page 24

Property Under Development

Domain 12

Austin, Texas

(rendering)

Property Description

Domain 12 is a 17-story, Class A office building currently under development located within The Domain in Austin, Texas.  It will offer 320,000 square feet of office space, along with dramatic views of the surrounding Domain community and Texas Hill Country.  Domain 12 was designed to achieve a minimum LEED Silver and Energy Star designations. The building is 100% pre-leased.

Property Highlights

The Domain is the epitome of upscale “live, work, play,” spread across 300 acres in Northwest Austin.  The community currently includes over two million square feet of office space that commands the highest Class A office rents in Austin outside the city’s CBD.  In addition to office space, The Domain offers nearly two million square feet of retail, 775 hotel rooms, and over 4,000 apartment units.

Property Facts

Submarket	The Domain
Floors	9 Floors Rentable Space/8 Floors Parking
Approximate Rentable SF	320,000
Estimated Operating Expenses per SF	$16.20
Estimated Shell Delivery Date to Tenants	4Q’19
Estimated Project Cost at Completion	$121,400,000
Percentage Owned	100	%
Percentage Leased	100	%

Supplemental Operating and Financial Data 4Q’18 Page 25

Acquisition and Disposition Activities
For the Twelve Months Ended December 31, 2018
		Number of Properties	Square Feet (in thousands) (at 100%)	Transaction Date	Price (in thousands)
	Location
Acquisitions
Domain Point (1)	Austin, TX	1	240	1/4/2018	$	73,800
Domain 8 (2)	Austin, TX	1	291	3/30/2018	$	92,787
		2	531
Dispositions
500 East Pratt	Baltimore, MD	1	280	2/13/2018	$	60,000
Centreport Office Center	Fort Worth, TX	1	133	2/22/2018	$	12,696
Loop Central	Houston, TX	1	575	3/27/2018	$	72,982
Fifth Third Center (3)	Columbus, OH	1	331	8/27/2018	N/A
Plaza at MetroCenter	Nashville, TN	1	361	10/31/2018	$	51,250
		5	1,680
(1) We acquired a 96.5% initial economic interest in Domain Point. We own a 90% interest in the joint venture entity that owns Domain Point.
(2) We acquired the remaining 50% interest in Domain 8, increasing our ownership interest to 100%.
(3) Ownership of Fifth Third Center was conveyed to the associated lender pursuant to a foreclosure and was accounted for as a full settlement of the outstanding $48.2 million loan and related interest.

Supplemental Operating and Financial Data 4Q’18 Page 26

Summary of Financing
December 31, 2018
(in thousands, except percentages and number of years)
					Principal			Weighted Average Effective Interest Rate	% of Total
Fixed Rate Debt
Secured mortgage debt					$	141,654		5.06%	20%
Unsecured term loans (1)					525,000			3.26%	73%
Total fixed rate debt					666,654			3.64%	93%
Variable Rate Debt
Unsecured term loan (1)					50,000			4.28%	7%
Unsecured revolving credit facility (2)					—			3.70%	—
Total variable rate debt					50,000			4.28%	7%
Total debt (3)					716,654			3.69%	100%
Unamortized debt issuance costs (3)					(1,899		)
Total notes payable, net					$	714,755
(1) The borrowing rate under $525.0 million of the unsecured term loans has been effectively fixed through the use of interest rate hedges. The remaining portion is variable rate.
(2) Additional borrowings of $320.6 million were available under the credit facility.
(3) Excludes $2.8 million of unamortized debt issuance costs associated with the revolving line of credit because those costs are presented as an asset on our consolidated balance sheet.
	Maturities
	Secured Mortgage Debt				Unsecured Revolving Credit Facility and Term Loans				Total				Annual % Maturing
	Principal			Rate (1)	Principal			Rate (1)	Principal			Rate (1)
2019	$	—		—	$	—		—	$	—		—	—
2020	—			—	—			—	—			—	—
2021	75,654			5.72%	—			—	75,654			5.72%	11%
2022	—			—	275,000			3.11%	275,000			3.11%	38%
2023	66,000			4.30%	—			3.70%	66,000			4.30%	9%
Thereafter	—			—	300,000			3.57%	300,000			3.57%	42%
Total debt	$	141,654			$	575,000			716,654			3.69%	100%
Unamortized debt issuance costs									(1,899		)
Total notes payable, net									$	714,755
Weighted average maturity in years	3.2				4.8				4.5
(1) Represents weighted average effective interest rate for debt maturing in this period.
	Maturities
	Consolidated Debt				Our share of unconsolidated debt				Total				Annual % Maturing
	Principal			Rate (1)	Principal			Rate (1)	Principal			Rate (1)
2019	$	—		—	$	—		—	$	—		—	—
2020	—			—	—			—	—			—	—
2021	75,654			5.72%	31,474			5.58%	107,128			5.68%	14%
2022	275,000			3.11%	—			—	275,000			3.11%	37%
2023	66,000			4.30%	—			—	66,000			4.30%	9%
Thereafter	300,000			3.57%	—			—	300,000			3.57%	40%
Total debt	716,654				31,474				748,128			3.77%	100%
Unamortized debt issuance costs	(1,899		)		(543		)		(2,442		)
Total notes payable, net	$	714,755			$	30,931			$	745,686
Weighted average maturity in years	4.5				2.8				4.4
(1) Represents weighted average effective interest rate for debt maturing in this period.
Hedging Details:
Type/Description	Notional Value			Index	Strike Rate			Effective Date	Maturity Date			Loan Designation
Interest rate swap - cash flow hedge	$	125,000		one-month LIBOR	1.6775%			31-Dec-14	31-Oct-19			Credit Facility
Interest rate swap - cash flow hedge	$	125,000		one-month LIBOR	1.6935%			30-Apr-15	31-Oct-19			Credit Facility
Interest rate swap - cash flow hedge	$	125,000		one-month LIBOR	1.7615%			30-Jun-15	31-May-22			Credit Facility
Interest rate swap - cash flow hedge	$	150,000		one-month LIBOR	1.7695%			30-Jun-15	31-May-22			Credit Facility
Interest rate swap - cash flow hedge	$	62,500		one-month LIBOR	2.8220%			31-Oct-19	31-Dec-24			Credit Facility
Interest rate swap - cash flow hedge	$	62,500		one-month LIBOR	2.8230%			31-Oct-19	31-Dec-24			Credit Facility
Interest rate swap - cash flow hedge	$	125,000		one-month LIBOR	2.8220%			31-Oct-19	31-Dec-24			Credit Facility

Supplemental Operating and Financial Data 4Q’18 Page 27

	Principal Payments by Year
	as of December 31, 2018
	(in thousands, except percentages)
			Stated Interest Rate		Effective Interest Rate
		Maturity					Total			2019			2020			2021			2022			2023			Thereafter
One BriarLake Plaza		01-Aug-21	5.65	%	5.72	%	$	75,654		$	1,582		$	1,670		$	72,402		$	—		$	—		$	—
Credit Facility - Revolving Line		18-Jan-22	3.65	%	3.70	%	—			—			—			—			—			—			—
Credit Facility - Term Loan		30-Jun-22	3.07	%	3.11	%	275,000			—			—			—			275,000			—			—
Legacy Union One		01-Jan-23	4.24	%	4.30	%	66,000			—			—			—			—			66,000			—
Credit Facility - Term Loan		17-Jan-25	3.52	%	3.57	%	300,000			—			—			—			—			—			300,000
Total			3.64	%	3.69	%	716,654			1,582			1,670			72,402			275,000			66,000			300,000
Unamortized debt issuance costs (1)							(1,899		)
Consolidated notes payable, net							714,755
Notes associated with investments in unconsolidated entities and excluded from the consolidated balance above (at ownership share):
Third + Shoal (47.5%)		27-Oct-21	5.50	%	5.58	%	31,474			—			—			31,474			—			—			—
Unamortized debt issuance costs							(543		)
Total unconsolidated notes payable, net							$	30,931
Total notes payable			3.72	%	3.77	%	748,128			$	1,582		$	1,670		$	103,876		$	275,000		$	66,000		$	300,000
Unamortized debt issuance costs							(2,442		)
Total notes payable, net							$	745,686
% of principal payments due by year							100		%	—		%	—		%	14		%	37		%	9		%	40		%
(1)	Excludes $2.8 million of unamortized debt issuance costs associated with the revolving line of credit because those costs are presented as an asset on our consolidated balance sheet.

Supplemental Operating and Financial Data 4Q’18 Page 28

Definitions of Non-GAAP Financial Measures

We use non-GAAP financial measures in our public filings and other public disclosures. These non-GAAP financial measures are defined below.

Funds from Operations (FFO)

Historical cost accounting for real estate assets in accordance with GAAP implicitly assumes that the value of real estate diminishes predictably over time.  Since real estate values have historically risen or fallen with market conditions, many industry investors and analysts have considered the presentation of operating results for real estate companies that use historical cost accounting alone to be insufficient for evaluating operating performance.  FFO is a non-GAAP financial measure that is widely recognized as a measure of a REIT’s operating performance.  We use FFO as defined by the National Association of Real Estate Investment Trusts (“Nareit”), which is net income (loss), computed in accordance with GAAP, excluding gains (or losses) from sales of property and impairments of depreciable real estate (including impairments of investments in unconsolidated entities that resulted from measurable decreases in the fair value of the depreciable real estate held by the unconsolidated entity), plus depreciation and amortization of real estate assets, and after related adjustments for unconsolidated entities and noncontrolling interests.  The determination of whether impairment charges have been incurred is based partly on anticipated operating performance and hold periods.  Estimated undiscounted cash flows from a property, derived from estimated future net rental and lease revenues, net proceeds on the sale of the property, and certain other ancillary cash flows, are taken into account in determining whether an impairment charge has been incurred.  While impairment charges for depreciable real estate are excluded from net income (loss) in the calculation of FFO as described above, impairments reflect a decline in the value of the applicable property that we may not recover.

We believe that the use of FFO, together with the required GAAP presentations, is helpful in understanding our operating performance because it excludes real estate-related depreciation and amortization, gains and losses from property dispositions, and impairments of depreciable real estate assets, and as a result, when compared period to period, reflects the impact on operations from trends in occupancy rates, rental rates, operating costs, development activities, general and administrative expenses, and interest costs, which are not immediately apparent from net income.  Factors that impact FFO include fixed costs, yields on cash held in accounts, income from portfolio properties and other portfolio assets, interest rates on debt financing, and operating expenses.

We also evaluate FFO, excluding certain items. The items excluded relate to certain non-operating activities or certain non-recurring activities that may create significant FFO volatility and affect the comparability of FFO across periods. We believe it is useful to evaluate FFO excluding these items because it provides useful information in analyzing comparability between reporting periods and in assessing the sustainability of our operating performance.

FFO and FFO, excluding certain items, should not be considered as alternatives to net income (loss), or as indicators of our liquidity, nor are they indicative of funds available to fund our cash needs, including our ability to make distributions.  Additionally, the exclusion of impairments limits the usefulness of FFO and FFO, excluding certain items, as historical operating performance measures since an impairment charge indicates that operating performance has been permanently affected.  FFO and FFO, excluding certain items, are non-GAAP measurements and should be reviewed in connection with other GAAP measurements.  Our FFO and FFO, excluding certain items, as presented may not be comparable to amounts calculated by other REITs that do not define FFO in accordance with the current Nareit definition, or interpret it differently, or that identify and exclude different items related to non-operating activities or certain non-recurring activities.

Net Operating Income (NOI)

NOI is a non-GAAP financial measure equal to rental revenue, less property operating expenses, real estate taxes, and property management expenses.   Our management uses NOI internally as a performance measure and believes NOI is useful to investors as a performance measure because NOI reflects only those income and expense items that are incurred at the property level and is therefore a useful measure for evaluating a property’s performance. Using NOI on a comparative basis allows investors to evaluate property level performance to compare the operating performance of our properties in a given market with the operating performance of other real estate companies in the same market, and consequently allocate their own investment capital accordingly.

Further, we use NOI internally as a performance measure and believe NOI is useful to investors as a performance measure because, when compared year over year, NOI reflects the impact on operations from trends in occupancy rates, rental rates, operating costs, acquisition and development activities, and general and administrative expenses on an un-leveraged basis, providing perspective not immediately apparent from net income. NOI excludes certain components from net income in order to provide results that are more closely related to a property’s results of operations. Certain items such as interest expense, while included in net income, do not affect the operating performance of a real estate asset and are often incurred at the corporate level as opposed to the property level. In addition, it is useful to our management and investors that depreciation and amortization are excluded from NOI because historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time, and, instead, real estate values have historically risen or fallen with market conditions.

NOI presented by us may not be comparable to NOI reported by other REITs that do not define NOI exactly as we do. We believe that in order to facilitate a clear understanding of our operating results, NOI should be examined in conjunction with net income as presented in our consolidated financial statements and notes thereto. NOI should not be considered as an alternative to net income as an indication of our performance, or to cash flows as a measure of liquidity or our ability to make distributions.

Same Store NOI and Same Store Cash NOI

Same Store NOI is equal to rental revenue, less lease termination fee income, property operating expenses (excluding tenant improvement demolition costs), real estate taxes, and property management expenses for our same store properties and is considered a non-GAAP financial measure. Same Store Cash NOI is equal to Same Store NOI less non-cash revenue items including straight-line rent adjustments and the amortization of above- and below-market rent. The same store properties include our operating office properties not held for sale and owned and operated for the entirety of both periods being compared and include our comparable ownership percentage in each period for properties in which we own an unconsolidated interest that is accounted for using the equity method.  We view Same Store NOI and Same Store Cash NOI as important measures of the operating performance of our properties because they allow us to compare operating results of properties owned and operated for the entirety of both periods being compared and therefore eliminate variations caused by acquisitions or dispositions during such periods.

Supplemental Operating and Financial Data 4Q’18 Page 29

Same Store NOI and Same Store Cash NOI presented by us may not be comparable to Same Store NOI or Same Store Cash NOI reported by other REITs that do not define Same Store NOI or Same Store Cash NOI exactly as we do. We believe that in order to facilitate a clear understanding of our operating results, Same Store NOI and Same Store Cash NOI should be examined in conjunction with net income (loss) as presented in our consolidated financial statements and notes thereto. Same Store NOI and Same Store Cash NOI should not be considered as an indicator of our ability to make distributions, as alternatives to net income (loss) as an indication of our performance, or as a measure of cash flows or liquidity.

Earnings before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre)

EBITDAre is a non-GAAP financial measure. We use EBITDAre as defined by Nareit which is net income (loss), computed in accordance with GAAP, plus interest expense, plus income tax expense, plus depreciation and amortization expense, plus (minus) losses and gains on the disposition of depreciated property, including losses and gains on change of control, plus impairment write-downs of depreciated property, and after related adjustments for unconsolidated entities. Our EBITDAre as presented may not be comparable to amounts calculated by other REITs that do not define EBITDAre in accordance with the current Nareit definition, or interpret it differently than we do.

EBITDAre is not intended to represent cash flow for the period, is not presented as an alternative to operating income as an indicator of operating performance, should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP, and is not indicative of operating income or cash provided by operating activities as determined under GAAP. EBITDAre is presented solely as a supplemental disclosure with respect to liquidity because we believe it provides useful information regarding our ability to service or incur debt.

We also evaluate Adjusted EBITDAre, which is EBITDAre excluding certain revenues and operating expenses. The items excluded relate to certain non-operating activities or certain non-recurring activities that create significant EBITDAre volatility. Further, we evaluate Adjusted Estimated Full Period EBITDAre, which is EBITDAre excluding certain revenues and operating expenses and adjusted to show the pro forma impact of properties that were either acquired or disposed during the period. We believe it is useful to evaluate EBITDAre excluding these items and as adjusted for property acquisitions and dispositions because it provides useful information in analyzing comparability between reporting periods and in assessing the sustainability of our operating performance.

Supplemental Operating and Financial Data 4Q’18 Page 30