2015 Q4 Supplemental Information ®
Introduction Management & Investor Contacts 3 Executive Summary 4 Capitalization Analysis & Research Coverage 5 2016 Guidance 6 Select Performance Information 7 Financial Information Consolidated Balance Sheet at CXP's share 8 Consolidated Statements of Operations at CXP's share 9 10 Net Operating Income 11 Debt Overview 12 Debt Covenant Compliance 13 Debt Maturities 14 Operational & Portfolio Information Property Overview 15 Market Summary 16 Top 20 Tenants & Tenant Industry Profile 17 Lease Expiration Schedule 18 Lease Expiration by Market 19 Leasing Summary 20 Occupancy Summary 21 Occupancy by Market 22 Capital Expenditure Summary 23 Transaction Activity 24 Additional Information Consolidated Balance Sheet - GAAP 25 Consolidated Statements of Operations - GAAP 26 27 Net Operating Income and Same Store Net Operating Income - Cash Basis (Reconciliation to Net Income) 28 Net Operating Income and Same Store Net Operating Income - GAAP Basis (Reconciliation to Net Income) 29 Definitions 30 Forward Looking Statements: Supplemental Information - Q4 2015 2 Columbia Property Trust, Inc. Table of Contents This supplemental package contains certain statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “continue,” or other similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, including our 2016 guidance, which speak only as of the date this supplemental package is published, and which are subject to certain risks and uncertainties which could cause actual results to differ materially from those projected or anticipated. These risks and uncertainties include, without limitation: general risks affecting the real estate industry (including, without limitation, the inability to enter into or renew leases, dependence on tenants’ financial condition, and competition from other owners and operators of real estate); adverse economic or real estate developments in the company’s target markets; risks associated with the availability and terms of financing, the use of debt to fund acquisitions, and the ability to refinance indebtedness as it comes due; reductions in asset valuations and related impairment charges; risks associated with downturns in foreign, domestic and local economies, changes in interest rates; potential liability for uninsured losses and environmental contamination; risks associated with joint ventures; risks associated with the company’s potential failure to qualify as a REIT under the Internal Revenue Code of 1986, as amended, and possible adverse changes in tax and environmental laws; and risks associated with the company’s dependence on key personnel whose continued service is not guaranteed. We do not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. For additional risks and uncertainties that would cause actual results to differ materially from those presented in our forward-looking statements see our Annual Report on Form 10-K for the year ended December 31, 2015 and subsequently filed periodic reports. On the Cover: Left - 315 Park Avenue South in New York, NY; Middle - 650 California Street in San Francisco, CA; Right - 229 West 43rd Street in New York, NY. Normalized Funds From Operations - NFFO Adjusted Funds From Operations - AFFO (Reconciliation to Net Income)
Corporate One Glenlake Parkway, Suite 1200 Atlanta, Georgia 30328 404-465-2200 www.columbiapropertytrust.com Executive and Senior Management E. Nelson Mills James A. Fleming Chief Executive Officer, Executive Vice President President and Director Chief Financial Officer David Dowdney Wendy Gill Kevin Hoover Senior Vice President Senior Vice President Senior Vice President Western Region Corporate Operations and Real Estate Transactions Chief Accounting Officer Board of Directors Carmen M. Bowser Charles R. Brown Richard W. Carpenter John L. Dixon David B. Henry Independent Director Independent Director Independent Director Independent Director Independent Director Chairman Murray J. McCabe E. Nelson Mills Michael S. Robb George W. Sands Thomas G. Wattles Independent Director Chief Executive Officer Independent Director Independent Director Independent Director President Corporate Counsel King & Spalding LLP 1180 Peachtree Street Atlanta, GA 30309 T 404-572-4600 www.kslaw.com Investor Relations Shareholder Services James A. Fleming T 855-347-0042 (toll free) Executive Vice President & Chief Financial Officer F 816-701-7629 T 404-465-2126 E shareholders@columbiapropertytrust.com E Jim.Fleming@columbiapropertytrust.com Tripp Sullivan SCR Partners, LLC T 615-760-1104 E TSullivan@SCR-ir.com Supplemental Information - Q4 2015 3 Columbia Property Trust, Inc. Management & Investor Contacts
Unaudited As of Period End 12/31/2015 Select Portfolio Statistics Number of Properties / Buildings 28 / 40 Office Rentable Square Footage (in thousands) 13,700 (1) Percent Leased 93.2% Commenced Occupancy 91.6% Average Economic Occupancy (2) 88.8% Percentage of Properties Multi-Tenant / Single (3) 78% / 22% Office Percentage of Portfolio (4) 98% Numbers of Markets / States (5) 15 / 13 Percentage of Portfolio Central Business District / Suburban (3) 68% / 32% Weighted Average Lease Term Remaining (3) 6.1 Years Balance Sheet ($ in thousands) Gross Real Estate Assets (6) 5,343,332 Gross Real Estate Assets - Unencumbered (6) (7) 4,340,006 Total Gross Debt (8) 1,900,813 Percentage of Gross Real Estate Assets - Unencumbered / Gross Real Estate Assets 81.2% Total Gross Debt / Gross Real Estate Assets 35.6% Rating / Outlook Standard & Poor's BBB / Stable Moody's Baa2 / Stable Number of Employees 99 (1) Includes 100% of Market Square. (2) Total square feet of leases that have commenced and the tenant is paying rent divided by total rentable square feet. Monthly average for the current quarter. (3) Based on Annualized Lease Revenue (ALR). (4) Based on square feet. (5) Includes Washington, D.C. 4 Columbia Property Trust, Inc. Executive Summary Supplemental Information - Q4 2015 (7) Unencumbered assets are those not subject to mortgage debt. (6) Gross Real Estate Assets includes (i) land, (ii) building and improvements, (iii) intangible lease assets, (iv) construction in progress, and (v) intangible lease origination costs, less (vi) intangible lease liabilities. Company Overview: Columbia Property Trust (NYSE: CXP) owns and operates Class-A office buildings in competitive, primarily CBD locations, and over half our investments are in high-barrier-to-entry, primary markets. As of December 31, 2015, our $5+ billion portfolio included 27 office properties containing 13.7 million square feet and one hotel, concentrated in San Francisco, New York, and Washington, D.C. For more information about Columbia, which carries an investment-grade rating from both Moody's and Standard & Poor's, please visit our website at www.columbiapropertytrust.com. (8) Total Gross Debt includes (i) line of credit and notes payable, and (ii) bonds payable. Basis of Presentation: The data included in this report supplements the information provided in our periodic reports filed with the Securities and Exchange Commission and should be reviewed in conjunction with such filings. This report includes data presented in various groupings, including geographic location and tenant industry profile. Such groupings are provided for presentation purposes only, as management evaluates the company’s performance on a property by property basis. On October 28, 2015, CXP transferred Market Square and a $325.0 million mortgage note to a joint venture (the “Market Square Joint Venture”). CXP sold a 49% interest in the Market Square Joint Venture to a third-party, and accounts for its 51% interest therein as an unconsolidated joint venture. Unless otherwise noted, the portfolio statistics and financial information provided in this report include CXP's 51% interest in the Market Square Joint Venture.
Unaudited ($ & shares in thousands except for per-share data and percentages) 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014 Common Stock Data Weighted-Average Shares Outstanding - Basic 124,343 124,359 124,925 124,903 124,868 Weighted-Average Shares Outstanding - Diluted 124,466 124,460 125,017 124,935 124,944 High Closing Price 25.97$ 25.30$ 27.45$ 27.67$ 25.79$ Low Closing Price 23.21$ 21.16$ 24.55$ 24.08$ 23.80$ Average Closing Price 24.30$ 23.46$ 26.40$ 25.59$ 25.15$ Closing Price (as of period end) 23.48$ 23.20$ 24.55$ 27.02$ 25.35$ Dividends / Share (annualized) 1.20$ 1.20$ 1.20$ 1.20$ 1.20$ Dividend Yield (annualized) (1) 5.1% 5.2% 4.9% 4.4% 4.7% Common Shares Outstanding (1) 124,363 124,510 125,076 125,077 124,973 Market Value of Common Shares (1) 2,920,043$ 2,888,632$ 3,070,616$ 3,379,581$ 3,168,066$ Total Market Capitalization (1) (2) 4,820,856$ 5,148,019$ 5,209,312$ 5,514,596$ 4,848,950$ Common Stock Repurchases Shares Purchased 152 570 - - - Weighted-Average Price Per Share 23.23$ 22.45$ -$ -$ -$ Total Value of Shares Purchased 3,531$ 12,797$ -$ -$ -$ Equity Research Coverage Evercore ISI Goldman Sachs & Co. JMP Securities Morgan Stanley Sheila McGrath Brad Burke Mitch Germain Sumit Sharma 212-497-0882 917-343-2082 212-906-3546 212-761-7567 Oppenheimer & Co Wunderlich Securities, Inc. BMO Capital Markets Inc. Steve Manaker Craig Kucera John P. Kim 212-667-5950 540-277-3366 212-885-4115 Debt Research Coverage J.P. Morgan Securities Mark Streeter 212-834-5086 Rating Agencies Moody's Investor Services Standard & Poor's Lori Marks Fernanda Hernandez 212-553-1098 212-438-1347 (2) Market value of shares plus gross debt as of quarter end. Supplemental Information - Q4 2015 5 (1) Based on closing price and ending shares for the last trading day of quarter. Three Months Ended Columbia Property Trust, Inc. Capitalization Analysis & Research Coverage
Unaudited Per share Low High Net Income 0.23$ 0.33$ Real Estate Depreciation & Amortization 1.27 1.27 Funds From Operations 1.50$ 1.60$ Adjustments - - Normalized Funds From Operations 1.50$ 1.60$ 2016 Portfolio Assumptions l Leased percentage at year end: l GAAP Straight Line Rental Income: l G&A Expenses 2016 Transaction Assumptions l Dispositions: l Acquisitions: 2016 Other Assumptions l Weighted-average common shares outstanding - diluted: 123.5MM (excludes impact of share repurchases after February 11, 2016) Supplemental Information - Q4 2015 6 Columbia Property Trust, Inc. 2016 Guidance Twelve Months Ended 12/31/2016 Investor Conference Call and Webcast: The Company will host a conference call and live audio webcast, both open for the general public to hear, on Friday, February 12, 2016, at 10:00 a.m. ET to discuss financial results, business highlights and 2016 guidance. The number to call for this interactive teleconference is (412) 542-4180. A replay of the conference call will be available through February 20, 2016, by dialing (877) 344-7529 and entering the confirmation number, 10078005. NOTE: These estimates reflect management's view of current market conditions and incorporate certain economic and operational assumptions and projections. This annual guidance includes the continued repositioning of the portfolio based on the above assumptions. Actual results could differ from these estimates. Note that individual quarters may fluctuate on both a cash basis and a GAAP basis due to the timing of dispositions, lease commencements and expirations, the timing of repairs and maintenance, capital expenditures, capital markets activities and one-time revenue or expense events. In addition, the Company's guidance is based on information available to management as of the date of this release. 90% to 92% $16MM to $24MM $32MM to $34MM $700MM to $800MM $200MM to $400MM
Unaudited ($ in thousands except for square feet, per-share data, percentages and ratios) 12/31/2015 12/31/2014 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014 Operating Information Percent Leased (as of period end) (page 21) 93.2% 93.3% 93.2% 93.3% 92.1% 92.3% 93.3% New Leases - Square Feet (page 20) (1) 497,209 359,239 126,156 120,446 60,508 190,099 134,072 Renewal Leases - Square Feet (page 20) (1) 760,264 740,583 596,949 18,560 104,705 40,050 189,393 Cash NOI (page 11) 327,319 337,097 78,038 77,212 87,068 85,001 80,940 Adjusted EBITDA (page 28) 328,825 324,303 78,162 78,581 87,313 84,769 79,444 Net Income (page 9) 44,619 92,635 10,169 20,143 8,709 5,598 56,226 Net Income per Share - Basic & Diluted 0.36 0.74 0.08 0.16 0.07 0.04 0.45 Normalized FFO (page 10) 248,909 255,160 59,221 58,132 66,260 65,296 61,360 Normalized FFO per Share - Basic 2.00 2.04 0.48 0.47 0.53 0.52 0.49 Normalized FFO per Share - Diluted 1.99 2.04 0.48 0.47 0.53 0.52 0.49 AFFO (page 10) 169,508 181,815 33,752 43,682 45,836 46,238 35,108 AFFO per Share - Basic & Diluted 1.36 1.46 0.27 0.35 0.37 0.37 0.28 Rental Income (page 9) 439,128 414,541 106,392 107,011 112,916 112,809 105,215 Total Revenues (page 9) 570,125 540,797 136,739 137,719 148,124 147,543 137,891 Straight Line Rent (page 10) 17,658 8,362 4,942 4,957 3,822 3,937 2,288 Total Operating Expenses (page 9) 465,214 451,928 111,308 113,535 118,364 122,007 119,512 Recurring Capital (page 23) 57,797 61,975 20,505 9,140 15,005 13,147 20,937 Non-Recurring Capital (page 23) 62,336 28,680 21,385 16,907 13,289 10,755 5,141 Dividends 149,924 149,962 37,354 37,524 37,523 37,523 37,491 Dividends per Share 1.20 1.20 0.30 0.30 0.30 0.30 0.30 Balance Sheet Information (as of period end) Gross Real Estate Assets (2) 5,343,332 5,216,396 5,343,332 5,737,688 5,778,566 5,792,468 5,216,396 Total Assets 4,851,688 4,734,240 4,851,688 5,213,373 5,119,556 5,150,338 4,734,240 Net Debt (3) 1,857,209 1,525,638 1,857,209 2,204,162 2,097,106 2,095,263 1,525,638 Gross Debt (4) 1,900,813 1,680,884 1,900,813 2,259,387 2,138,696 2,135,015 1,680,884 Ratios NOI Margin (5) 62.2% 64.8% 62.2% 61.4% 62.9% 62.1% 62.2% Fixed Charge Coverage Ratio (6) 3.93 4.56 3.90 3.65 4.03 4.16 4.28 Net Debt (Average) to Adjusted EBITDA (7) 6.16 4.72 6.30 6.51 5.99 5.87 4.82 Gross Debt / Gross Real Estate Assets (as of period end) 35.6% 32.2% 35.6% 39.4% 37.0% 36.9% 32.2% Normalized FFO Payout Ratio (8) 60.2% 58.8% 63.1% 64.5% 56.6% 57.5% 61.1% AFFO Payout Ratio (9) 88.4% 82.5% 110.7% 85.9% 81.9% 81.2% 106.8% (5) NOI margin is calculated as GAAP NOI divided by total GAAP revenues for continuing and discontinued operations. (8) Calculated as dividends divided by Normalized FFO for the quarter. (9) Calculated as dividends divided by AFFO for the quarter. Supplemental Information - Q4 2015 7 Columbia Property Trust, Inc. Select Performance Information NOTE: 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 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 27, 28 & 29. 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 page 30. (2) Gross Real Estate Assets includes (i) land, (ii) building and improvements, (iii) intangible lease assets, (iv) construction in progress, and (v) intangible lease origination costs, less (vi) intangible lease liabilities. (3) Net debt is calculated as the total principal amount of debt outstanding less cash and cash equivalents and discount and fees on notes and bonds payable. (6) Fixed charge coverage is calculated as Adjusted EBITDA divided by the sum of interest expense, principal amortization, and capitalized interest. Three Months EndedTwelve Months Ended (7) Net debt is calculated as the quarterly average of principal debt outstanding less cash and cash equivalents and discount on bonds payable. Prior to first quarter 2015, net debt is calculated as of the last day of the quarter. Adjusted EBITDA is annualized for purposes of the calculation. (4) Total Gross Debt includes (i) line of credit and notes payable, and (ii) bonds payable. (1) Leasing activity is shown at 100% for CXP's pro rata share (51%) in the Market Square Joint Venture.
Columbia Property Trust, Inc. Unaudited (in thousands) 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014 Assets: Real estate assets, at cost: Land 974,307$ 1,056,275$ 849,042$ 912,035$ 785,101$ Buildings and improvements 3,701,345 3,970,646 3,687,609 4,083,182 3,686,529 Buildings and improvements, accumulated depreciation (614,716) (648,405) (616,274) (693,780) (660,098) Intangible lease asset 511,868 546,503 530,299 608,689 560,890 Intangible lease asset, accumulated amortization (250,355) (266,454) (264,564) (316,720) (313,822) Construction in progress 36,836 45,623 39,777 27,201 17,962 Real estate assets held for sale - - 512,304 - - Real estate assets held for sale, accumulated depreciation - - (139,820) - - Total real estate assets 4,359,285$ 4,704,188$ 4,598,373$ 4,620,607$ 4,076,562$ Cash and cash equivalents 34,168 44,823 33,742 31,236 149,790 Tenant receivables, net of allowance for doubtful accounts 11,984 10,818 8,551 10,859 6,945 Straight line rent receivable 113,066 112,750 107,727 121,098 116,489 Prepaid expenses and other assets 36,023 34,049 32,044 33,111 55,931 Intangible lease origination costs 260,299 269,130 263,845 326,355 325,154 Intangible lease origination costs, accumulated amortization (181,569) (181,420) (179,438) (220,596) (219,626) Deferred lease costs 139,385 138,880 135,000 147,006 139,584 Deferred lease costs, accumulated amortization (40,953) (39,845) (37,166) (39,338) (36,589) Investment in development authority bonds 120,000 120,000 120,000 120,000 120,000 Other assets held for sale - - 78,948 - - Other assets held for sale, accumulated amortization - - (42,070) - - Total assets 4,851,688$ 5,213,373$ 5,119,556$ 5,150,338$ 4,734,240$ Liabilities: Line of credit and notes payable 1,300,813$ 1,659,387$ 1,517,696$ 1,535,015$ 1,430,884$ Bonds payable 600,000 600,000 600,000 600,000 250,000 Discount and fees on notes and bonds payable (9,436) (10,402) (7,848) (8,516) (5,456) 104,924 110,103 93,144 97,973 106,276 Distributions payable 37,354 - - - - Deferred income 25,488 25,232 22,304 25,688 24,753 Intangible lease liabilities 141,323 150,489 150,994 164,994 159,240 Intangible lease liabilities, accumulated amortization (81,607) (83,736) (79,607) (86,922) (84,935) Obligations under capital leases 120,000 120,000 120,000 120,000 120,000 Liabilities held for sale - - 31,901 - - Liabilities held for sale, accumulated amortization - - (3,662) - - Total liabilities 2,238,859$ 2,571,073$ 2,444,922$ 2,448,232$ 2,000,762$ Equity: Common stock 1,243$ 1,245$ 1,250$ 1,250$ 1,249$ Additional paid in capital 4,588,303 4,591,204 4,603,107 4,602,201 4,601,808 Cumulative distributions in excess of earnings (1,974,281) (1,945,731) (1,928,350) (1,899,536) (1,867,611) Other comprehensive loss (2,436) (4,418) (1,373) (1,809) (1,968) Total equity 2,612,829$ 2,642,300$ 2,674,634$ 2,702,106$ 2,733,478$ Total liabilities and equity 4,851,688$ 5,213,373$ 5,119,556$ 5,150,338$ 4,734,240$ Supplemental Information - Q4 2015 8 Consolidated Balance Sheet at CXP's share (1) Accounts payable, accrued expenses, and accrued capital expenditures (1) CXP's pro rata share of the assets and liabilities of the Market Square Joint Venture (51%) are reflected in the corresponding line items above. As of Period End
Unaudited (in thousands, except per-share amounts) 12/31/2015 12/31/2014 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014 Revenues: Rental income 439,128$ 414,541$ 106,392$ 107,011$ 112,916$ 112,809$ 105,215$ Tenant reimbursements 100,635 95,375 23,240 22,627 26,519 28,249 24,847 Hotel income 24,309 22,885 5,411 6,941 6,964 4,993 5,587 Other property income (2) 1,816 1,705 701 332 430 353 413 Lease termination income (3) 4,237 6,291 995 808 1,295 1,139 1,829 Total revenues 570,125$ 540,797$ 136,739$ 137,719$ 148,124$ 147,543$ 137,891$ Operating expenses: Property operating costs 189,950 163,722 45,575 46,538 48,083 49,754 44,766 Hotel operating costs 19,615 18,792 4,546 5,331 5,147 4,591 4,923 Asset and property management fees 2,012 2,258 640 472 503 397 612 Depreciation 132,625 117,766 32,364 32,441 33,813 34,007 30,313 Amortization 87,599 78,843 20,366 20,276 23,738 23,219 20,625 Impairment loss on real estate assets - 25,130 - - - - 10,148 General and administrative 29,738 31,275 7,817 6,797 7,080 8,044 8,081 Acquisition fees and expenses 3,675 14,142 - 1,680 - 1,995 44 Total operating expenses 465,214$ 451,928$ 111,308$ 113,535$ 118,364$ 122,007$ 119,512$ Operating income 104,911$ 88,869$ 25,431$ 24,184$ 29,760$ 25,536$ 18,379$ Other income (expense): Interest expense (79,569) (68,511) (18,708) (20,212) (20,965) (19,684) (17,868) Capital lease obligation interest expense (7,200) (7,200) (1,800) (1,800) (1,800) (1,800) (1,800) Development authority bond income 7,200 7,200 1,800 1,800 1,800 1,800 1,800 Interest and other income 54 75 6 8 7 33 60 Interest rate swap valuation adjustment 2,634 4,946 - - 1,319 1,315 1,322 Interest expense associated with interest rate swaps (2,642) (5,317) - - (1,321) (1,321) (1,330) Loss on interest rate swaps (1,102) - - (1,102) - - - Loss on early extinguishment of debt (3,149) (23) - (2,672) - (477) (23) Total other income (expense) (83,774)$ (68,830)$ (18,702)$ (23,978)$ (20,960)$ (20,134)$ (17,839)$ 21,137$ 20,039$ 6,729$ 206$ 8,800$ 5,402$ 540$ Income tax (expense) benefit (378) (662) (238) (245) (91) 196 (246) 20,759$ 19,377$ 6,491$ (39)$ 8,709$ 5,598$ 294$ Gain on sale of real estate assets 23,860 75,275 3,678 20,182 - - 56,668 Income from continuing operations 44,619$ 94,652$ 10,169$ 20,143$ 8,709$ 5,598$ 56,962$ Discontinued operations: Operating loss - (390) - - - - (87) Loss on disposition of discontinued operations - (1,627) - - - - (649) Loss from discontinued operations -$ (2,017)$ -$ -$ -$ -$ (736)$ 44,619$ 92,635$ 10,169$ 20,143$ 8,709$ 5,598$ 56,226$ 124,757 124,860 124,343 124,359 124,925 124,903 124,868 0.36$ 0.74$ 0.08$ 0.16$ 0.07$ 0.04$ 0.45$ 124,847 124,918 124,466 124,460 125,017 124,935 124,944 0.36$ 0.74$ 0.08$ 0.16$ 0.07$ 0.04$ 0.45$ (2) Other property income includes (i) property management fee income, (ii) cafeteria revenue and (iii) fitness center revenue. Supplemental Information - Q4 2015 9(3) Includes nonrecurring fees incurred under the consulting and transition services agreements which were terminated at expiration effective (1) CXP's pro rata share of revenues and expenses of the Market Square Joint Venture (51%) are reflected in the corresponding line items above. Net income Weighted-average common shares outstanding - basic Net income per share - basic Weighted-average common shares outstanding - diluted Net income per share - diluted Columbia Property Trust, Inc. Consolidated Statements of Operations at CXP's share (1) (3) Includes adjustments for straight-line rent related to lease terminations. Income before income tax (expense) benefit and gains on sale of real estate assets Income (loss) from continuing operations before gains on sale of real estate assets Twelve Months Ended Three Months Ended
Unaudited (in thousands, except per-share amounts) 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014 Net Operating Income - Cash Basis 78,038$ 77,212$ 87,068$ 85,001$ 80,940$ Lease termination income (1) 995 808 1,295 1,139 1,254 General and administrative (G&A) (7,817) (6,797) (7,080) (8,044) (8,081) Stock based compensation expense in G&A (2) 623 896 1,015 1,014 464 Straight-line rent receivable write-off in G&A (3) 158 6 4 6 203 Interest expense - cash (net) (17,502) (19,058) (21,370) (19,927) (18,410) Income tax (expense) benefit (238) (245) (91) 196 (246) Operating loss from discontinued operations - cash basis - - - - (79) Recurring capital expenditures (4) (5) (20,505) (9,140) (15,005) (13,147) (20,937) AFFO 33,752$ 43,682$ 45,836$ 46,238$ 35,108$ AFFO per share (basic) 0.27$ 0.35$ 0.37$ 0.37$ 0.28$ AFFO per share (diluted) 0.27$ 0.35$ 0.37$ 0.37$ 0.28$ Additional amortization of lease assets (liabilities) (6) 1,846 2,401 2,210 2,742 2,555 Straight-line rental income (1) 4,942 4,957 3,822 3,937 2,660 Gain on interest rate swaps - - 1,319 1,315 1,322 Stock based compensation expense in G&A (2) (623) (896) (1,015) (1,014) (464) Non-cash interest expense (7) (1,201) (1,152) (917) (1,069) (758) Total other non-cash adjustments 4,964 5,310 5,419 5,911 5,315 Recurring capital expenditures (4) (5) 20,505 9,140 15,005 13,147 20,937 Normalized FFO 59,221$ 58,132$ 66,260$ 65,296$ 61,360$ Normalized FFO per share (basic) 0.48$ 0.47$ 0.53$ 0.52$ 0.49$ Normalized FFO per share (diluted) 0.48$ 0.47$ 0.53$ 0.52$ 0.49$ 124,343 124,359 124,925 124,903 124,868 124,466 124,460 125,017 124,935 124,944 (5) Reflects CXP's pro rata share (51%) in the Market Square Joint Venture. Supplemental Information - Q4 2015 10 (1) Effective January 1, 2015, lease termination income is presented on an accrual basis. Prior to that date, lease termination income is presented on a cash basis and the related accrual adjustments are included in straight-line rental income. (4) See page 30 of this supplemental report for a description of Recurring Capital Expenditures. (6) GAAP implicitly assumes that the value of intangible lease assets (liabilities) diminishes predictably over time and, thus, requires these charges to be recognized ratably over the respective lease terms. Such intangible lease assets (liabilities) arise from the allocation of acquisition price related to direct costs associated with obtaining a new tenant, the value of opportunity costs associated with lost rentals, the value of tenant relationships, and the value of effective rental rates of in-place leases that are above or below market rates of comparable leases at the time of acquisition. Like real estate values, market lease rates in aggregate have historically risen or fallen with local market conditions. (2) This item represents the noncash impact of compensation expense related to stock grants under our 2013 Long-Term Incentive Plan within general and administrative expense. (3) Includes adjustments for straight-line rent related to lease terminations within general and administrative expense. Three Months Ended Columbia Property Trust, Inc. Weighted-average common shares outstanding - basic Weighted-average common shares outstanding - diluted Normalized Funds From Operations - NFFO (7) This item represents amortization of financing costs paid in connection with executing our debt instruments, and the accretion of premiums (and amortization of discounts) on certain of our debt instruments. GAAP requires these items to be recognized over the remaining term of the respective debt instrument, which may not correlate with the ongoing operations of our real estate portfolio.
Unaudited (in thousands) 12/31/2015 12/31/2014 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014 GAAP Basis Revenues: Rental Income 309,755$ 312,763$ 76,419$ 77,358$ 77,860$ 78,118$ 78,850$ Tenant Reimbursements 76,319 75,744 17,824 18,808 19,527 20,160 19,899 Hotel Income 24,309 22,885 5,411 6,941 6,964 4,993 5,587 Other Property Income 1,686 1,431 697 324 332 333 369 Total Revenues 412,069$ 412,823$ 100,351$ 103,431$ 104,683$ 103,604$ 104,705$ Operating Expenses: Property Operating Costs (133,939) (129,891) (32,679) (33,431) (33,646) (34,183) (34,419) Hotel Operating Costs (19,615) (18,792) (4,546) (5,331) (5,147) (4,591) (4,923) Total Operating Expenses (153,554)$ (148,683)$ (37,225)$ (38,762)$ (38,793)$ (38,774)$ (39,342)$ Net Operating Income GAAP - Same Store (1) 258,515$ 264,140$ 63,126$ 64,669$ 65,890$ 64,830$ 65,363$ Net Operating Income from: Acquisitions (2) 62,461 12,239 20,256 16,238 12,702 13,265 7,234 Dispositions (3) 33,358 74,035 1,602 3,663 14,508 13,585 13,136 Net Operating Income GAAP - Total 354,334$ 350,414$ 84,984$ 84,570$ 93,100$ 91,680$ 85,733$ 350,414 Cash Basis Revenues: Rental Income 299,761$ 301,623$ 75,243$ 74,967$ 74,743$ 74,808$ 76,315$ Tenant Reimbursements 76,319 75,744 17,824 18,808 19,527 20,160 19,899 Hotel Income 24,309 22,885 5,411 6,941 6,964 4,993 5,587 Other Property Income 1,686 1,431 697 324 332 333 368 Total Revenues 402,075$ 401,683$ 99,175$ 101,040$ 101,566$ 100,294$ 102,169$ Operating Expenses: Property Operating Costs (131,878) (126,951) (32,162) (32,914) (33,130) (33,672) (33,670) Hotel Operating Costs (19,615) (18,792) (4,546) (5,331) (5,147) (4,591) (4,923) Total Operating Expenses (151,493)$ (145,743)$ (36,708)$ (38,245)$ (38,277)$ (38,263)$ (38,593)$ Net Operating Income Cash - Same Store (1) 250,582$ 255,940$ 62,467$ 62,795$ 63,289$ 62,031$ 63,576$ Net Operating Income from: Acquisitions (2) 43,568 6,759 14,251 11,508 9,071 8,738 4,009 Dispositions (3) 33,169 74,398 1,320 2,909 14,708 14,232 13,355 Net Operating Income Cash - Total 327,319$ 337,097$ 78,038$ 77,212$ 87,068$ 85,001$ 80,940$ 337,097 Reconciliation of GAAP to Cash Net Operating Income Net Operating Income GAAP - Total 354,334$ 350,414$ 84,984$ 84,570$ 93,100$ 91,680$ 85,733$ Less amounts included in GAAP basis rental income: Straight-line rental inc. (excluding lease terminations) (17,816) (8,362) (5,100) (4,957) (3,822) (3,937) (2,288) Net effect of above/(below) lease market amortization (9,199) (4,955) (1,846) (2,401) (2,210) (2,742) (2,505) Net Operating Income Cash - Total 327,319$ 337,097$ 78,038$ 77,212$ 87,068$ 85,001$ 80,940$ Supplemental Information - Q4 2015 11 Columbia Property Trust, Inc. (2) Reflects activity for the following properties acquired since January 1, 2014, for all periods presented: 229 West 43rd Street, 315 Park Avenue South, 116 Huntington Avenue, 650 California Street, and 221 Main Street. Three Months Ended (3) Reflects activity for the following properties sold since January 1, 2014, for all periods presented: 1881 Campus Commons, Market Square (49% share), 170 Park Avenue, 180 Park Avenue, 1580 West Nursery Road, Acxiom, Highland Landmark III, The Corridors III, 215 Diehl Road, 544 Lakeview, Bannockburn Lake III, 550 King Street, Robbins Road, Lenox Park Buildings, 9 Technology Drive, 7031 Columbia Gateway Drive, 200 South Orange, and 160 Park Avenue. Twelve Months Ended Net Operating Income (1) Includes CXP's pro rata share (51%) in the Market Square Joint Venture for all periods presented.
Unaudited ($ in thousands) (at 12/31/2015) Debt Instrument - Secured Maturity Rate Rate Type Balance % of Total Debt Mortgage Notes SanTan Corporate Center October-16 5.83% Fixed 39,000$ 2.1% 221 Main Street May-17 3.95% Fixed 73,000 3.8% 263 Shuman Boulevard July-17 5.55% Fixed 49,000 2.6% One Glenlake Parkway December-18 5.80% Fixed 29,278 1.5% 650 California Street July-19 3.60% Fixed 128,785 6.8% Market Square July-23 5.07% Fixed 165,750 (1) 8.7% Weighted Average / Secured - Mortgage Notes 4.1 Years 4.66% 484,813$ 25.5% Debt Instrument - Unsecured Maturity Rate Rate Type Balance % of Total Debt Bank Facilities $300 Million Bridge Loan (2) February-16 LIBOR + 110 bps Floating 119,000$ 6.2% $500 Million Revolving Credit Facility (3) July-19 LIBOR + 100 bps Floating 247,000 13.0% $300 Million Term Loan (4) July-20 LIBOR + 110 bps Floating 300,000 15.8% $150 Million Term Loan (5) July-22 3.52% Fixed 150,000 7.9% Weighted Average / Bank Facilities 4.0 Years 1.69% 816,000$ 42.9% Senior Notes $250 Million Notes @ 5.875% April-18 5.88% Fixed 250,000$ 13.2% $350 Million Notes @ 4.150% April-25 4.15% Fixed 350,000 18.4% Weighted Average / Senior Notes 6.3 Years 4.87% 600,000$ 31.6% Weighted Average / Unsecured 5.0 Years 3.04% 1,416,000$ 74.5% Weighted Average / Total Debt 4.8 Years 3.45% 1,900,813$ 100.0% Weighted Ave Maturity Weighted Ave Rate - Qtr Balance % of Total Debt 5.5 Years 4.63% 1,234,813$ 65.0% 3.4 Years 1.28% 666,000 35.0% Total 4.8 Years 3.45% 1,900,813$ 100.0% (1) Mortgage balance reflects CXP's pro rata share (51%) in the Market Square Joint Venture. Supplemental Information - Q4 2015 12 Fixed and Floating Rate Debt Analysis Columbia Property Trust, Inc. Debt Overview Fixed Rate Debt Floating Rate Debt (5) Columbia Property Trust is party to an interest rate swap agreement, which effectively fixes its interest rate on the $150 Million Term Loan at 3.52% per annum and terminates on July 29, 2022. The spread of 1.55% over the swapped rate is based on the company's credit rating. This interest rate swap agreement qualifies for hedge accounting treatment; therefore, changes in fair value are recorded as a market value adjustment to interest rate swap in our consolidated statements of other comprehensive income. (3) The Revolving Credit Facility ($500MM) bears interest at a rate based on, at the option of Columbia Property Trust, LIBOR for seven days, one-, two-, three-, or six-month periods, plus an applicable margin ranging from 0.875% to 1.55% based on credit rating, or the alternate base rate which is the greater of (a) Prime Rate, (b) Fed Funds plus 1/2 of 1%, and (c) the Libor Rate plus 1%, plus an applicable margin ranging from 0.00% to 0.55% based on credit rating. This facility carries two six-month extension options. (4) The $300 Million Term Loan bears interest at a rate based on, at the option of Columbia Property Trust, LIBOR for seven days, one-, two-, three-, or six-month periods, plus an applicable margin ranging from 0.90% to 1.75% based on credit rating, or the alternate base rate which is the greater of (a) Prime Rate, (b) Fed Funds plus 1/2 of 1%, and (c) the Libor Rate plus 1%, plus an applicable margin ranging from 0.00% to 0.75% based on credit rating. (2) The $300 Million Bridge Loan bears interest, at the option of Columbia Property Trust, at either (a) an alternate base rate plus an applicable margin ranging from 0.00% to 0.75% based on credit rating, or (b) LIBOR plus an applicable margin based on five stated pricing levels ranging from 0.90% to 1.75% based on credit rating. This loan carries one six-month extension option.
Unaudited (at 12/31/2015) Bond Covenant Compliance Metric Actual (12/31/15) Debt to Total Asset Value Ratio Max 60% 34% Interest Coverage Ratio (adjusted EBITDA) Min 1.50x 3.60x Secured Debt to Total Asset Value Ratio Max 40% 9% Maintenance of Total Unencumbered Assets Min 150% 317% Term Loan / Bridge Loan / Revolving Credit Facility Covenant Compliance Metric Actual (12/31/15) Debt to Total Asset Value Ratio Max 60% 37% Interest Coverage Ratio (adjusted EBITDA) Min 1.50x 3.47x Secured Debt to Total Asset Value Ratio Max 40% 9% Unencumbered Asset Coverage Ratio Min 1.66x 2.97x Unencumbered Interest Coverage Ratio Min 1.75x 5.11x Supplemental Information - Q4 2015 13 Columbia Property Trust, Inc. Debt Covenant Compliance
Unaudited ($ in thousands) (at 12/31/2015) Secured Debt Unsecured Debt Unsecured Debt Total Debt % of Weighted Average % of Gross Mortgage Notes Bank Facilities Senior Notes Balance Total Debt Rate - Qtr (1) Real Estate Assets 39,000$ 119,000$ -$ 158,000$ 8.3% 2.40% 3.0% 122,000 - - 122,000 6.4% 4.59% 2.3% 29,278 - 250,000 279,278 14.7% 5.87% 5.2% 128,785 247,000 - 375,785 19.8% 2.04% 7.0% - 300,000 - 300,000 15.8% 1.32% 5.6% - 150,000 - 150,000 7.9% 3.52% 2.8% 165,750 - - 165,750 8.7% 5.07% 3.1% - - 350,000 350,000 18.4% 4.15% 6.6% 484,813$ 816,000$ 600,000$ 1,900,813$ 100.0% 3.45% 35.6% 25.5% 42.9% 31.6% Supplemental Information - Q4 2015 14 Columbia Property Trust, Inc. Debt Maturities Maturity Year 2020 2022 Total (1) Includes effective rates on variable rate loans swapped to fixed. 2016 2017 2018 2019 2023 2025 % of Total Debt $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Maturity Schedule Mortgage Debt Bridge Loan Bonds Line of Credit Term Loan 5.87% 2.40% 4.59% 5.07% 2.04% 4.15% 1.32% 3.52%
Unaudited (SF & $ in thousands) (at 12/31/2015) Market Ownership % Secured Debt? % of ALR ALR / Leased S.F. % Leased University Circle San Francisco, CA 100% 35,046$ 7.2% 78.93$ 451 444 98.4% 333 Market Street San Francisco, CA 100% 25,018 (1) 5.2% 38.08 657 657 100.0% 650 California Street San Francisco, CA 100% Yes 23,448 4.8% 53.53 477 438 91.8% 221 Main Street San Francisco, CA 100% Yes 21,500 4.4% 59.39 378 362 95.8% Subtotal - San Francisco 105,012 21.6% 55.24 1,963 1,901 96.8% 229 West 43rd Street New York, NY 100% 32,385 6.6% 68.90 481 470 97.7% 222 East 41st Street New York, NY 100% 28,658 5.9% 80.95 372 354 95.2% 315 Park Avenue South New York, NY 100% 21,779 4.5% 75.10 328 290 88.4% Subtotal - New York 82,822 17.0% 74.35 1,181 1,114 94.3% 5 Houston Center Houston, TX 100% 26,507 5.5% 50.11 581 529 91.0% Energy Center I Houston, TX 100% 12,852 2.6% 38.71 332 332 100.0% 515 Post Oak Houston, TX 100% 5,804 1.2% 28.88 274 201 73.4% Subtotal - Houston 45,163 9.3% 42.53 1,187 1,062 89.5% Market Square Washington, D.C. 51% Yes 23,660 (2) 4.9% 81.03 353 (2) 292 (2) 82.7% 80 M Street Washington, D.C. 100% 13,360 2.7% 52.19 285 256 89.8% Subtotal - Washington, D.C. 37,020 7.6% 67.55 638 548 85.9% Lindbergh Center Atlanta, GA 100% 22,004 (1) 4.5% 23.04 955 955 100.0% Three Glenlake Parkway Atlanta, GA 100% 7,477 (1) 1.5% 21.06 355 355 100.0% One Glenlake Parkway Atlanta, GA 100% Yes 6,805 1.4% 27.00 351 252 71.8% Subtotal - Atlanta 36,286 7.4% 23.23 1,661 1,562 94.0% International Financial Tower Northern New Jersey 100% 24,030 4.9% 38.95 630 617 97.9% Cranberry Woods Drive Pittsburgh, PA 100% 15,565 (1) 3.2% 18.89 824 824 100.0% South Jamaica Street Denver, CO 100% 11,170 (3) 2.3% 23.37 478 478 100.0% 116 Huntington Avenue Boston, MA 100% 9,899 2.0% 46.91 271 211 77.9% Sterling Commerce Dallas, TX 100% 7,880 1.6% 25.42 310 310 100.0% Pasadena Corporate Park Los Angeles, CA 100% 7,599 1.6% 30.52 264 249 94.3% SanTan Corporate Center Phoenix, AZ 100% Yes 6,550 1.3% 25.10 267 261 97.8% Key Center Tower Cleveland, OH 100% 35,368 7.3% 32.12 1,325 1,101 83.1% Key Center Marriott (Hotel) Cleveland, OH 100% - 0.0% - - - 0.0% 100 East Pratt Baltimore, MD 100% 25,835 5.3% 40.18 653 643 98.5% 80 Park Plaza Northern New Jersey 100% 21,849 4.5% 26.52 961 824 85.7% 800 North Frederick Suburban Maryland 100% 8,373 (4) 1.7% 21.31 393 393 100.0% 263 Shuman Boulevard Chicago, IL 100% Yes 6,615 (3) 1.4% 18.69 354 354 100.0% Subtotal - Potential Dispositions 98,040 20.2% 29.57 3,686 3,315 89.9% Total - All Properties 487,036$ 100.0% 39.11$ 13,360 12,452 93.2% Total - All Properties (at 100%) 13,700 (5) 12,733 (5) Supplemental Information - Q4 2015 15 Columbia Property Trust, Inc. Property Overview (1) Except for insurance expense, reimbursements are excluded as operating expenses are paid directly by the tenant. (3) Except for real estate tax and insurance expense, reimbursements are excluded as operating expenses are paid directly by the tenant. (4) Except for real estate tax expense, reimbursements are excluded as operating expenses are paid directly by the tenant. Annualized Lease Revenue (ALR) (2) ALR and square feet are presented at CXP's pro rata share (51%) in the Market Square Joint Venture. Property Rentable S.F. Leased S.F. (5) Reflects 100% of Market Square: 693K rentable square feet and 573K leased square feet.
Unaudited (SF & $ in thousands) (at 12/31/2015) State Number of Properties Annualized Lease Revenue (ALR) % of ALR Rentable Square Footage Leased Square Footage % Leased San Francisco CA 4 105,012$ 21.6% 1,963 1,901 96.8% New York NY 3 82,822 17.0% 1,181 1,114 94.3% Houston TX 3 45,163 9.3% 1,187 1,062 89.5% Washington, D.C. DC 2 37,020 7.6% 638 548 85.9% Atlanta GA 3 36,286 7.4% 1,661 1,562 94.0% Northern New Jersey NJ 1 24,030 4.9% 630 617 97.9% Pittsburgh PA 1 15,565 3.2% 824 824 100.0% Denver CO 1 11,170 2.3% 478 478 100.0% Boston MA 1 9,899 2.0% 271 211 77.9% Dallas TX 1 7,880 1.6% 310 310 100.0% Los Angeles CA 1 7,599 1.6% 264 249 94.3% Phoenix AZ 1 6,550 1.3% 267 261 97.8% Potential Dispositions - 6 98,040 20.2% 3,686 3,315 89.9% Total 28 487,036$ 100.0% 13,360 12,452 93.2% Supplemental Information - Q4 2015 16 Columbia Property Trust, Inc. Geography Market Summary 21.6% 17.0% 9.3% 7.6% 7.4% 4.9% 3.2% 2.3% 2.0% 1.6% 23.1% Market Distribution by Annualized Lease Revenue San Francisco Denver New York Pittsburgh Other Washington, D.C. Boston Atlanta Houston Dallas Northern New Jersey
Unaudited (SF & $ in thousands) (at 12/31/2015) Tenant Credit Rating (1) Number of Properties Annualized Lease Revenue (ALR) % of ALR Leased Square Footage % of Leased Square Footage Remaining Lease Term Years (2) Wells Fargo Bank N.A. AA- 3 28,538$ 5.9% 697 5.6% 9.7 Jones Day Not Rated 1 28,124 5.8% 353 2.8% 0.8 AT&T Corporation/AT&T Services BBB+ 1 22,003 4.5% 955 7.7% 5.0 PSEG Services Corporation BBB+ 1 21,849 4.5% 824 6.6% 14.8 Credit Suisse A 2 19,675 4.0% 265 2.1% 1.8 Pershing LLC A+ 1 18,278 3.8% 471 3.8% 5.4 Westinghouse Electric Company BBB 1 15,565 3.2% 824 6.6% 9.4 T Rowe Price Associates Inc. Not Rated 1 15,411 3.2% 425 3.4% 12.0 Yahoo! B+ 1 13,616 2.8% 193 1.6% 9.5 Keybank National Association A- 1 13,248 2.7% 478 3.8% 14.5 Foster Wheeler BBB- 1 12,850 2.6% 332 2.7% 2.7 CH2M Hill, Inc. Not Rated 1 11,170 2.3% 478 3.8% 13.0 IBM AA- 3 11,121 2.3% 482 3.9% 0.5 Newell Rubbermaid, Inc. BBB- 2 8,980 1.8% 411 3.3% 4.8 DLA Piper US, LLP Not Rated 1 8,087 1.7% 119 1.0% 2.5 DocuSign, Inc. Not Rated 1 7,933 1.6% 117 0.9% 8.6 OfficeMax B- 1 6,615 1.4% 354 2.8% 1.4 Caremark PCS BBB+ 1 5,246 1.1% 207 1.7% 7.0 Ernst & Young U.S. LLP Not Rated 1 5,070 1.0% 118 1.0% 6.8 Squire Sanders LLP Not Rated 1 4,991 1.0% 151 1.2% 6.3 Subtotal - Top 20 278,370$ 57.2% 8,254 66.3% 7.0 All other 208,666 42.8% 4,198 33.7% 5.0 Total 487,036$ 100.0% 12,452 100.0% 6.1 (1) Credit rating may reflect the credit rating of the parent or a guarantor. Only the Standard & Poor's credit rating has been provided. (2) Weighted average based on CXP's share of Annualized Lease Revenue. Supplemental Information - Q4 2015 17 Columbia Property Trust, Inc. Top 20 Tenants & Tenant Industry Profile 16.2% 14.3% 12.5% 10.1% 8.2% 6.3% 5.9% 2.8% 2.7% 2.7% 18.3% Tenant Industry Profile (2) Services - Legal Services Fire - Depository Institutions Trans & Util - Communication Services - Business Services Trans & Util - Electric, Gas, And Sanitary Services Services - Engineering & Management Services Fire - Nondepository Institutions Manf. - Industrial Machinery and Equipment Fire - Security And Commodity Brokers Retail - Miscellaneous Retail Other
Unaudited (SF & $ in thousands) (at 12/31/2015) Expiring Annualized Lease Revenue (ALR) % of ALR Expiring Expiring Rentable Square Footage % of Rentable Square Footage Expiring -$ 0.0% 908 6.8% 64,150 13.2% 1,321 9.9% 48,386 9.9% 1,188 8.9% 37,191 7.6% 786 5.9% 16,671 3.4% 300 2.2% 32,934 6.8% 844 6.3% 58,135 11.9% 1,763 13.2% 32,671 6.7% 786 5.9% 26,291 5.4% 673 5.0% 11,868 2.4% 225 1.7% 35,725 7.3% 1,160 8.7% 35,926 7.4% 871 6.5% 587 0.1% 10 0.1% 16,308 3.4% 442 3.3% 3,252 0.7% 125 0.9% 66,941 13.8% 1,958 14.7% 487,036$ 100.0% 13,360 100.0% Supplemental Information - Q4 2015 18 2024 2030+ Total 2025 2026 2027 2028 2029 Columbia Property Trust, Inc. NOTE: Expirations that have been renewed are reflected above based on the renewal expiration date. Vacant 2016 2017 2018 Year 2019 2020 2021 2022 2023 Lease Expiration Schedule 13.2% 9.9% 7.6% 3.4% 6.8% 11.9% 6.7% 5.4% 2.4% 7.3% 7.4% 0.1% 3.4% 0.7% 13.8% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030+ Lease Expiration Schedule % of ALR Expiring
Columbia Property Trust, Inc. Unaudited (in thousands, except square footage & percentages) Geography Expiring SF Expiring ALR (1) Expiring SF Expiring ALR (1) Expiring SF Expiring ALR (1) Expiring SF Expiring ALR (1) Expiring SF Expiring ALR (1) San Francisco 43,133 2,519 121,290 4,869 26,537 1,778 9,233 753 200,193 9,919 New York - - - - 69,945 4,429 353,541 28,148 423,486 32,577 Houston - - - - 8,150 363 - - 8,150 363 Washington, D.C. - - 54,772 4,347 84,465 4,640 1,748 157 140,985 9,144 Atlanta - - - - - - - - - - Northern New Jersey - - - - - - - - - - Pittsburgh - - - - - - - - - - Denver - - 107,638 2,516 - - - - 107,638 2,516 Boston - - - - - - - - - - Dallas - - - - - - - - - - Los Angeles - - - - - - - - - - Phoenix - - - - - - - - - - Potential Dispositions 41,431 1,067 397,977 8,524 1,190 40 - - 440,598 9,631 Total 84,564 3,586$ 681,677 20,256$ 190,287 11,250$ 364,522 29,058$ 1,321,050 64,150$ % of Total Portfolio 0.7% 0.7% 5.1% 4.2% 1.4% 2.3% 2.7% 6.0% 9.9% 13.2% (1) Expiring ALR is calculated as expiring square footage multiplied by the gross rent per square foot of the tenant currently leasing the space. Supplemental Information - Q4 2015 19 Lease Expiration by Market Total Three Months Ended 3/31/16 6/30/16 9/30/16 12/31/16
Unaudited, Weighted average unless otherwise noted 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014 Renewal Leases Number of Leases 10 4 13 1 6 Square Feet of Leasing (at 100%) 596,949 18,560 104,705 40,050 189,393 Square Feet of Leasing (at CXP's share) 593,968 18,560 104,705 40,050 189,393 Lease Term (months) 188 51 99 52 157 Cash Rent Releasing Spread -11.9% -5.1% 22.8% 46.6% -0.8% GAAP Rent Releasing Spread 7.2% 8.5% 36.7% 69.4% 6.5% Tenant Improvements per Square Foot 28.56 11.19 35.01 7.50 91.41 Leasing Commissions per Square Foot 12.11 7.43 16.18 12.00 44.50 Total per Square Foot 40.67$ 18.62$ 51.19$ 19.50$ 135.91$ Tenant Improvements per Square Foot per Year of Lease Term 1.83 2.61 4.23 1.72 7.01 Leasing Commissions per Square Foot per Year of Lease Term 0.78 1.73 1.96 2.76 3.41 Total per Square Foot per Year 2.61$ 4.34$ 6.19$ 4.48$ 10.42$ New Leases (Space Vacant > 1 Year) Number of Leases 7 11 10 4 6 Square Feet of Leasing (at 100%) 56,164 95,855 22,682 53,924 38,361 Square Feet of Leasing (at CXP's share) 56,164 95,855 22,682 53,924 38,361 Lease Term (months) 104 86 81 100 89 Tenant Improvements per Square Foot 52.09 26.99 27.22 62.88 57.07 Leasing Commissions per Square Foot 16.42 17.59 7.11 18.31 20.20 Total per Square Foot 68.51$ 44.58$ 34.33$ 81.19$ 77.27$ Tenant Improvements per Square Foot per Year of Lease Term 6.03 3.77 4.03 7.52 7.70 Leasing Commissions per Square Foot per Year of Lease Term 1.90 2.46 1.05 2.19 2.72 Total per Square Foot per Year 7.93$ 6.23$ 5.08$ 9.71$ 10.42$ New Leases (Space Vacant < 1 Year) (1) Number of Leases 5 1 5 4 7 Square Feet of Leasing (at 100%) 69,992 24,591 37,826 136,175 95,711 Square Feet of Leasing (at CXP's share) 59,355 24,591 37,826 136,175 95,711 Lease Term (months) 236 134 80 129 103 Cash Rent Releasing Spread 8.9% 8.6% 21.8% 64.3% 6.2% GAAP Rent Releasing Spread 23.9% 7.6% 33.9% 85.3% 14.6% Tenant Improvements per Square Foot 106.92 60.66 37.39 77.07 43.24 Leasing Commissions per Square Foot 64.82 33.11 26.10 35.73 28.42 Total per Square Foot 171.74$ 93.77$ 63.49$ 112.80$ 71.66$ Tenant Improvements per Square Foot per Year of Lease Term 5.45 5.45 5.62 7.16 5.02 Leasing Commissions per Square Foot per Year of Lease Term 3.30 2.97 3.92 3.32 3.30 Total per Square Foot per Year 8.75$ 8.42$ 9.54$ 10.48$ 8.32$ Total Leases Number of Leases 22 16 28 9 19 Square Feet of Leasing (at 100%) 723,105 139,006 165,213 230,149 323,465 Square Feet of Leasing (at CXP's share) 709,487 139,006 165,213 230,149 323,465 Lease Term (months) 196 101 92 113 141 Cash Rent Releasing Spread -6.9% 6.9% 22.5% 61.3% 0.7% GAAP Rent Releasing Spread 11.2% 7.7% 35.8% 82.7% 8.2% Tenant Improvements per Square Foot 47.53 38.37 35.07 65.03 79.44 Leasing Commissions per Square Foot 24.47 22.68 18.27 29.35 39.53 Total per Square Foot 72.00$ 61.05$ 53.34$ 94.38$ 118.97$ Tenant Improvements per Square Foot per Year of Lease Term 2.46 3.91 4.52 6.30 6.50 Leasing Commissions per Square Foot per Year of Lease Term 1.08 2.45 2.28 2.96 3.30 Total per Square Foot per Year 3.54$ 6.36$ 6.80$ 9.26$ 9.80$ (1) Includes executed leases that have not yet commenced for space covered by an existing lease. Supplemental Information - Q4 2015 20 Columbia Property Trust, Inc. Three Months Ended Leasing Summary
Unaudited (SF & $ in thousands) (at 12/31/2015) Rentable Leased Percent Square Footage Square Footage Leased As of September 30, 2015 13,937 13,009 93.3% Portfolio Activity (1) Dispositions: Market Square (2) (337) (271) 80.5% 1881 Campus Commons (245) (223) 91.4% Subtotal 13,355 12,515 93.7% Leasing Activity New Leases (3) 5 102 Lease Expirations/Early Terminations (165) Net Absorption 5 (63) As of December 31, 2015 13,360 12,452 93.2% 12/31/15 9/30/15 6/30/15 3/31/15 12/31/14 (1) As of disposition date. (2) Reflects the sale of a 49% interest in Market Square. Supplemental Information - Q4 2015 21 (3) New leasing activity for space that was either vacant at the beginning of the quarter or that became available due to expiration/termination of an existing lease. Columbia Property Trust, Inc. Occupancy Summary 93.2% 93.3% 92.1% 92.3% 93.3% 50% 60% 70% 80% 90% 100% 12/31/15 9/30/15 6/30/15 3/31/15 12/31/14 Percent Leased
Unaudited (SF in thousands) (at 12/31/2015) Rentable Square Footage Leased Square Footage Percent Leased Commenced Occupancy Average Economic Occupancy (1) San Francisco 1,963 1,901 96.8% 95.5% 92.3% New York 1,181 1,114 94.3% 92.6% 83.7% Houston 1,187 1,062 89.5% 87.3% 83.4% Washington, D.C. 638 548 85.9% 83.7% 79.6% Atlanta 1,661 1,562 94.0% 93.9% 89.2% Other Markets 3,044 2,950 96.9% 96.9% 96.5% Potential Dispositions (2) 3,686 3,315 89.9% 86.4% 85.7% Total 13,360 12,452 93.2% 91.6% 88.8% (1) Total square feet of leases that have commenced and the tenant is paying rent divided by total rentable square feet. Monthly average for the current quarter. Supplemental Information - Q4 2015 22 Columbia Property Trust, Inc. Occupancy by Market (1) Property acquired subsequent to quarter end. Unless explicitly stated, operational and portfolio information contained in this supplement does not reflect this (2) Includes the following assets: Key Center Tower, Key Center Marriott, 100 East Pratt, 80 Park Plaza, 800 North Frederick, and 263 Shuman Boulevard (see page 15).
Unaudited ($ in thousands) 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014 Recurring Building Capital 1,697$ 2,194$ 2,971$ 2,156$ 4,999$ Tenant Improvements 10,732 6,700 11,219 7,366 4,350 Leasing Commissions 5,570 750 685 2,824 7,166 Other Leasing Costs 2,506 (504) 130 801 4,422 Total - Recurring 20,505$ 9,140$ 15,005$ 13,147$ 20,937$ Non-Recurring Building Capital 10,165$ 11,594$ 6,869$ 3,977$ 815$ Tenant Improvements 4,200 2,132 5,745 2,567 7,068 Leasing Commissions 5,166 2,845 1,167 1,327 1,208 Other Leasing Costs 1,854 336 (492) 2,884 (3,950) Total - Non-Recurring 21,385$ 16,907$ 13,289$ 10,755$ 5,141$ Recurring & Non-Recurring Building Capital 11,862$ 13,788$ 9,840$ 6,133$ 5,814$ Tenant Improvements 14,932 8,832 16,964 9,933 11,418 Leasing Commissions 10,736 3,595 1,852 4,151 8,374 Other Leasing Costs 4,360 (168) (362) 3,685 472 Total - Recurring & Non-Recurring 41,890$ 26,047$ 28,294$ 23,902$ 26,078$ NOTE: See page 30 of this supplemental report for a description of Recurring and Non-Recurring Capital Expenditures. Supplemental Information - Q4 2015 23 Columbia Property Trust, Inc. Capital Expenditure Summary Capital Expenditures Three Months Ended
Unaudited ($ in thousands) (at 12/31/2015) Acquisitions Location Acquisition Date Percent Ownership Purchase Price Rentable Square Footage $ / SF % Leased at Acquisition 229 West 43rd Street New York, NY 8/4/2015 100.0% 516,000$ 481,110 1,073$ 97.7% 315 Park Avenue South New York, NY 1/7/2015 100.0% 372,000 326,812 1,138 93.9% 1881 Campus Commons Reston, VA 1/7/2015 100.0% 64,000 244,565 262 78.0% Subtotal (2 Property Portfolio) 436,000 571,377 763 116 Huntington Avenue Boston, MA 1/8/2015 100.0% 152,000 270,943 561 77.8% 650 California Street San Francisco, CA 9/9/2014 100.0% 310,200 476,592 651 88.1% 221 Main Street San Francisco, CA 4/22/2014 100.0% 228,800 374,598 611 82.8% Total - Acquisitions 1,643,000$ 2,174,620 Dispositions Location Disposition Date Percent Ownership Sale Price Rentable Square Footage $ / SF % Leased at Disposition 1881 Campus Commons Washington, D.C. 12/10/2015 100.0% 65,000$ 244,565 266$ 91.4% 180 Park Avenue Northern New Jersey 7/1/2015 100.0% 223,837 71.4% 170 Park Avenue Northern New Jersey 7/1/2015 100.0% 145,000 0.0% 1580 West Nursery Road Baltimore, MD 7/1/2015 100.0% 315,350 100.0% Acxiom Chicago, IL 7/1/2015 100.0% 321,852 100.0% Highland Landmark III Chicago, IL 7/1/2015 100.0% 272,975 68.1% The Corridors III Chicago, IL 7/1/2015 100.0% 221,940 95.0% 215 Diehl Road Chicago, IL 7/1/2015 100.0% 161,865 100.0% 544 Lakeview Chicago, IL 7/1/2015 100.0% 139,218 51.1% Bannockburn Lake III Chicago, IL 7/1/2015 100.0% 106,495 0.0% Robbins Road Boston, MA 7/1/2015 100.0% 458,237 100.0% 550 King Street Boston, MA 7/1/2015 100.0% 490,119 100.0% Subtotal (11 Property Portfolio) 433,250 2,856,888 152 Lenox Park Buildings Atlanta, GA 10/3/2014 100.0% 290,000 1,040,327 279 100.0% 9 Technology Drive Boston, MA 8/22/2014 100.0% 47,000 250,813 187 100.0% 7031 Columbia Gateway Drive Baltimore, MD 7/1/2014 100.0% 59,509 247,624 240 100.0% 200 South Orange Orlando, FL 6/30/2014 100.0% 18,800 128,296 147 100.0% 160 Park Avenue Northern New Jersey 6/4/2014 100.0% 10,200 240,274 42 0.0% Total - Dispositions (excluding Joint Venture) 923,759$ 5,008,787 Location Closing Date % Sold / Retained Contributed Value Rentable Square Footage $ / SF % Leased at Closing Date Market Square Washington, D.C. 10/28/2015 49% / 51% 595,000$ 687,310 866$ 80.5% Supplemental Information - Q4 2015 24 (1) Property acquired subsequent to quarter end. Unless explicitly stated, operational and portfolio information contained in this supplement does not reflect this transaction. Columbia Property Trust, Inc. Transaction Activity Property Name Property Name Property Contributed to Joint Venture
Columbia Property Trust, Inc. Unaudited (in thousands) 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014 Assets: Real estate assets, at cost: Land 896,467$ 1,056,275$ 849,042$ 912,035$ 785,101$ Buildings and improvements 3,511,070 3,970,646 3,687,609 4,083,182 3,686,529 Buildings and improvements, accumulated depreciation (613,639) (648,405) (616,274) (693,780) (660,098) Intangible lease asset 509,221 546,503 530,299 608,689 560,890 Intangible lease asset, accumulated amortization (250,085) (266,454) (264,564) (316,720) (313,822) Construction in progress 31,847 45,623 39,777 27,201 17,962 Real estate assets held for sale - - 512,304 - - Real estate assets held for sale, accumulated depreciation - - (139,820) - - Total real estate assets 4,084,881$ 4,704,188$ 4,598,373$ 4,620,607$ 4,076,562$ Cash and cash equivalents 32,645 44,823 33,742 31,236 149,790 Tenant receivables, net of allowance for doubtful accounts 11,670 10,818 8,551 10,859 6,945 Straight line rent receivable 109,062 112,750 107,727 121,098 116,489 Prepaid expenses and other assets 35,848 34,049 32,044 33,111 55,931 Intangible lease origination costs 258,672 269,130 263,845 326,355 325,154 Intangible lease origination costs, accumulated amortization (181,482) (181,420) (179,438) (220,596) (219,626) Deferred lease costs 128,944 138,880 135,000 147,006 139,584 Deferred lease costs, accumulated amortization (40,817) (39,845) (37,166) (39,338) (36,589) Investment in unconsolidated joint venture 118,695 - - - - Investment in development authority bonds 120,000 120,000 120,000 120,000 120,000 Other assets held for sale - - 78,948 - - Other assets held for sale, accumulated amortization - - (42,070) - - Total assets 4,678,118$ 5,213,373$ 5,119,556$ 5,150,338$ 4,734,240$ Liabilities: Line of credit and notes payable 1,135,063$ 1,659,387$ 1,517,696$ 1,535,015$ 1,430,884$ Bonds payable 600,000 600,000 600,000 600,000 250,000 Discount and fees on notes and bonds payable (9,233) (10,402) (7,848) (8,516) (5,456) 98,759 110,103 93,144 97,973 106,276 Distributions payable 37,354 - - - - Deferred income 24,814 25,232 22,304 25,688 24,753 Intangible lease liabilities 138,663 150,489 150,994 164,994 159,240 Intangible lease liabilities, accumulated amortization (81,496) (83,736) (79,607) (86,922) (84,935) Obligations under capital leases 120,000 120,000 120,000 120,000 120,000 Liabilities held for sale - - 31,901 - - Liabilities held for sale, accumulated amortization - - (3,662) - - Total liabilities 2,063,924$ 2,571,073$ 2,444,922$ 2,448,232$ 2,000,762$ Equity: Common stock 1,243$ 1,245$ 1,250$ 1,250$ 1,249$ Additional paid in capital 4,588,303 4,591,204 4,603,107 4,602,201 4,601,808 Cumulative distributions in excess of earnings (1,972,916) (1,945,731) (1,928,350) (1,899,536) (1,867,611) Other comprehensive loss (2,436) (4,418) (1,373) (1,809) (1,968) Total equity 2,614,194$ 2,642,300$ 2,674,634$ 2,702,106$ 2,733,478$ Total liabilities and equity 4,678,118$ 5,213,373$ 5,119,556$ 5,150,338$ 4,734,240$ Supplemental Information - Q4 2015 25 As of Period End Accounts payable, accrued expenses, and accrued capital expenditures Consolidated Balance Sheet - GAAP
Unaudited (in thousands, except per-share amounts) 12/31/2015 12/31/2014 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014 Revenues: Rental income 436,048$ 414,541$ 103,312$ 107,011$ 112,916$ 112,809$ 105,215$ Tenant reimbursements 99,655 95,375 22,260 22,627 26,519 28,249 24,847 Hotel income 24,309 22,885 5,411 6,941 6,964 4,993 5,587 Other property income (1) 1,816 1,705 701 332 430 353 413 Lease termination income (2) 4,237 6,291 995 808 1,295 1,139 1,829 Total revenues 566,065$ 540,797$ 132,679$ 137,719$ 148,124$ 147,543$ 137,891$ Operating expenses: Property operating costs 188,078 163,722 43,703 46,538 48,083 49,754 44,766 Hotel operating costs 19,615 18,792 4,546 5,331 5,147 4,591 4,923 Asset and property management fees 1,816 2,258 444 472 503 397 612 Depreciation 131,490 117,766 31,229 32,441 33,813 34,007 30,313 Amortization 87,128 78,843 19,895 20,276 23,738 23,219 20,625 Impairment loss on real estate assets - 25,130 - - - - 10,148 General and administrative 29,683 31,275 7,762 6,797 7,080 8,044 8,081 Acquisition fees and expenses 3,675 14,142 - 1,680 - 1,995 44 Total operating expenses 461,485$ 451,928$ 107,579$ 113,535$ 118,364$ 122,007$ 119,512$ Operating income 104,580$ 88,869$ 25,100$ 24,184$ 29,760$ 25,536$ 18,379$ Other income (expense): Interest expense (78,096) (68,511) (17,235) (20,212) (20,965) (19,684) (17,868) Capital lease obligation interest expense (7,200) (7,200) (1,800) (1,800) (1,800) (1,800) (1,800) Development authority bond income 7,200 7,200 1,800 1,800 1,800 1,800 1,800 Interest and other income 54 75 6 8 7 33 60 Interest rate swap valuation adjustment 2,634 4,946 - - 1,319 1,315 1,322 Interest expense associated with interest rate swaps (2,642) (5,317) - - (1,321) (1,321) (1,330) Loss on interest rate swaps (1,102) - - (1,102) - - - Loss on early extinguishment of debt (3,149) (23) - (2,672) - (477) (23) Total other income (expense) (82,301)$ (68,830)$ (17,229)$ (23,978)$ (20,960)$ (20,134)$ (17,839)$ 22,279$ 20,039$ 7,871$ 206$ 8,800$ 5,402$ 540$ Income tax (expense) benefit (378) (662) (238) (245) (91) 196 (246) 21,901$ 19,377$ 7,633$ (39)$ 8,709$ 5,598$ 294$ Loss from unconsolidated joint venture (1,142) - (1,142) - - - - 20,759$ 19,377$ 6,491$ (39)$ 8,709$ 5,598$ 294$ Gain on sale of real estate assets 23,860 75,275 3,678 20,182 - - 56,668 Income from continuing operations 44,619$ 94,652$ 10,169$ 20,143$ 8,709$ 5,598$ 56,962$ Discontinued operations: Operating loss - (390) - - - - (87) Loss on disposition of discontinued operations - (1,627) - - - - (649) Loss from discontinued operations -$ (2,017)$ -$ -$ -$ -$ (736)$ 44,619$ 92,635$ 10,169$ 20,143$ 8,709$ 5,598$ 56,226$ 124,757 124,860 124,343 124,359 124,925 124,903 124,868 0.36$ 0.74$ 0.08$ 0.16$ 0.07$ 0.04$ 0.45$ 124,847 124,918 124,466 124,460 125,017 124,935 124,944 0.36$ 0.74$ 0.08$ 0.16$ 0.07$ 0.04$ 0.45$ (1) Other property income includes (i) property management fee income, (ii) cafeteria revenue and (iii) fitness center revenue. Supplemental Information - Q4 2015 26 Columbia Property Trust, Inc. Consolidated Statements of Operations - GAAP (3) Includes nonrecurring fees incurred under the consulting and transition services agreements which were terminated at expiration effective (2) Includes adjustments for straight-line rent related to lease terminations. Net income per share - basic Net income Weighted-average common shares outstanding - basic Weighted-average common shares outstanding - diluted Net income per share - diluted Three Months Ended Income before income tax (expense) benefit, loss from unconsolidated joint venture and gains on sale of real estate assets Income (loss) from continuing operations before loss from unconsolidated joint venture and gains on sale of real estate assets Income (loss) from continuing operations before gains on sale of real estate assets Twelve Months Ended
Unaudited (in thousands, except per-share amounts) 12/31/2015 12/31/2014 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014 Net Income 44,619$ 92,635$ 10,169$ 20,143$ 8,709$ 5,598$ 56,226$ Depreciation of real estate assets 131,490 117,766 31,229 32,441 33,813 34,007 30,313 Amortization of lease-related costs 87,128 78,843 19,895 20,276 23,738 23,219 20,625 1,606 - 1,606 - - - - Loss on disposition of real estate assets - disc. operations - 1,627 - - - - 649 Gain on sale of real estate assets - continuing operations (23,860) (75,275) (3,678) (20,182) - - (56,668) Impairment loss on real estate assets - 25,130 - - - - 10,148 FFO 240,983$ 240,726$ 59,221$ 52,678$ 66,260$ 62,824$ 61,293$ Real estate acquisition-related costs 3,675 14,142 - 1,680 - 1,995 44 Shelf registration costs - 269 - - - - - Settlement of interest rate swap 1,102 - - 1,102 - - - Loss on early extinguishment of debt 3,149 23 - 2,672 - 477 23 Normalized FFO 248,909$ 255,160$ 59,221$ 58,132$ 66,260$ 65,296$ 61,360$ Normalized FFO per share (basic) 2.00$ 2.04$ 0.48$ 0.47$ 0.53$ 0.52$ 0.49$ Normalized FFO per share (diluted) 1.99$ 2.04$ 0.48$ 0.47$ 0.53$ 0.52$ 0.49$ Additional amortization of lease assets (liabilities) (1) (9,128) (4,686) (1,775) (2,401) (2,210) (2,742) (2,555) Straight-line rental income (2) (17,581) (6,768) (4,865) (4,957) (3,822) (3,937) (2,660) Gain on interest rate swaps (2,634) (4,946) - - (1,319) (1,315) (1,322) Stock based compensation expense in G&A (3) 3,548 1,975 623 896 1,015 1,014 464 Non-cash interest expense (4) 4,335 3,055 1,197 1,152 917 1,069 758 (144) - (144) - - - - Total other non-cash adjustments (21,604) (11,370) (4,964) (5,310) (5,419) (5,911) (5,315) Recurring capital expenditures (5) (6) (57,797) (61,975) (20,505) (9,140) (15,005) (13,147) (20,937) AFFO 169,508$ 181,815$ 33,752$ 43,682$ 45,836$ 46,238$ 35,108$ AFFO per share (basic) 1.36$ 1.46$ 0.27$ 0.35$ 0.37$ 0.37$ 0.28$ AFFO per share (diluted) 1.36$ 1.46$ 0.27$ 0.35$ 0.37$ 0.37$ 0.28$ 124,757 124,860 124,343 124,359 124,925 124,903 124,868 124,847 124,918 124,466 124,460 125,017 124,935 124,944 (5) See page 30 of this supplemental report for a description of Recurring Capital Expenditures. (6) Reflects CXP's pro rata share (51%) in the Market Square Joint Venture. Supplemental Information - Q4 2015 27 Columbia Property Trust, Inc. Adjusted Funds From Operations - AFFO (Reconciliation to Net Income) (4) This item represents amortization of financing costs paid in connection with executing our debt instruments, and the accretion of premiums (and amortization of discounts) on certain of our debt instruments. GAAP requires these items to be recognized over the remaining term of the respective debt instrument, which may not correlate with the ongoing operations of our real estate portfolio. Twelve Months Ended Three Months Ended (1) GAAP implicitly assumes that the value of intangible lease assets (liabilities) diminishes predictably over time and, thus, requires these charges to be recognized ratably over the respective lease terms. Such intangible lease assets (liabilities) arise from the allocation of acquisition price related to direct costs associated with obtaining a new tenant, the value of opportunity costs associated with lost rentals, the value of tenant relationships, and the value of effective rental rates of in-place leases that are above or below market rates of comparable leases at the time of acquisition. Like real estate values, market lease rates in aggregate have historically risen or fallen with local market conditions. (3) This item represents the noncash impact of compensation expense related to stock granted under our 2013 Long-Term Incentive Plan. (2) Prior to first quarter 2015, adjustments for straight-line rent related to lease terminations were included. Weighted-average common shares outstanding - basic Weighted-average common shares outstanding - diluted Depreciation & amortization included in loss from unconsolidated joint venture Other non-cash adjustments included in loss from unconsolidated joint venture
Unaudited (in thousands) 12/31/2015 12/31/2014 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014 Net Income 44,619$ 92,635$ 10,169$ 20,143$ 8,709$ 5,598$ 56,226$ Interest expense (net) 86,738 75,681 20,503 22,004 22,762 21,469 19,638 Interest income from development authority bonds (7,200) (7,200) (1,800) (1,800) (1,800) (1,800) (1,800) Income tax expense (benefit) 378 662 238 245 91 (196) 246 Depreciation 132,625 117,766 32,364 32,441 33,813 34,007 30,313 Amortization 87,599 78,843 20,366 20,276 23,738 23,219 20,625 EBITDA 344,759$ 358,387$ 81,840$ 93,309$ 87,313$ 82,297$ 125,248$ Impairment loss - 25,130 - - - - 10,148 Gain on sale of real estate assets (23,860) (75,275) (3,678) (20,182) - - (56,668) Shelf registration costs - 269 - - - - - Real estate acquisition-related costs 3,675 14,142 - 1,680 - 1,995 44 Settlement of interest rate swap 1,102 - - 1,102 - - - Loss on early extinguishment of debt 3,149 23 - 2,672 - 477 23 Loss on disposition of real estate assets - disc. operations - 1,627 - - - - 649 Adjusted EBITDA 328,825$ 324,303$ 78,162$ 78,581$ 87,313$ 84,769$ 79,444$ General and administrative 29,738 31,275 7,817 6,797 7,080 8,044 8,081 Shelf registration costs in G&A - (269) - - - - - Interest rate swap valuation adjustment (2,634) (4,946) - - (1,319) (1,315) (1,322) Interest expense associated with interest rate swaps 2,642 5,317 - - 1,321 1,321 1,330 Lease termination income (1) (4,237) (5,974) (995) (808) (1,295) (1,139) (1,829) Straight line rental income (17,816) (8,362) (5,100) (4,957) (3,822) (3,937) (2,288) Net effect of above/(below) market amortization (9,199) (4,956) (1,846) (2,401) (2,210) (2,742) (2,505) Non-cash property operations - (46) - - - - (50) Operating loss from discontinued operations - cash basis - 755 - - - - 79 Net Operating Income - Cash Basis 327,319$ 337,097$ 78,038$ 77,212$ 87,068$ 85,001$ 80,940$ Less Net Operating Income from: Acquisitions (2) (43,568) (6,759) (14,251) (11,508) (9,071) (8,738) (4,009) Dispositions (3) (33,169) (74,398) (1,320) (2,909) (14,708) (14,232) (13,355) Same Store NOI - Cash Basis (4) 250,582$ 255,940$ 62,467$ 62,795$ 63,289$ 62,031$ 63,576$ Supplemental Information - Q4 2015 28 Columbia Property Trust, Inc. Net Operating Income and Same Store Net Operating Income - Cash Basis (Reconciliation to Net Income) (3) Reflects activity for the following properties sold since January 1, 2014, for all periods presented: 1881 Campus Commons, Market Square (49% share), 170 Park Avenue, 180 Park Avenue, 1580 West Nursery Road, Acxiom, Highland Landmark III, The Corridors III, 215 Diehl Road, 544 Lakeview, Bannockburn Lake III, 550 King Street, Robbins Road, Lenox Park Buildings, 9 Technology Drive, 7031 Columbia Gateway Drive, 200 South Orange, and 160 Park Avenue. Twelve Months Ended (1) Includes adjustments for straight-line rent related to lease terminations. (2) Reflects activity for the following properties acquired since January 1, 2014, for all periods presented: 229 West 43rd Street, 315 Park Avenue South, 116 Huntington Avenue, 650 California Street, and 221 Main Street. Three Months Ended (4) Includes CXP's pro rata share (51%) in the Market Square Joint Venture for all periods presented.
Unaudited (in thousands) 12/31/2015 12/31/2014 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014 Net Income 44,619$ 92,635$ 10,169$ 20,143$ 8,709$ 5,598$ 56,226$ Interest expense (net) 86,738 75,681 20,503 22,004 22,762 21,469 19,638 Interest income from development authority bonds (7,200) (7,200) (1,800) (1,800) (1,800) (1,800) (1,800) Income tax expense (benefit) 378 662 238 245 91 (196) 246 Depreciation 132,625 117,766 32,364 32,441 33,813 34,007 30,313 Amortization 87,599 78,843 20,366 20,276 23,738 23,219 20,625 EBITDA 344,759$ 358,387$ 81,840$ 93,309$ 87,313$ 82,297$ 125,248$ Impairment loss - 25,130 - - - - 10,148 Gain on sale of real estate assets (23,860) (75,275) (3,678) (20,182) - - (56,668) Shelf registration costs - 269 - - - - - Real estate acquisition-related costs 3,675 14,142 - 1,680 - 1,995 44 Settlement of interest rate swap 1,102 - - 1,102 - - - Loss on early extinguishment of debt 3,149 23 - 2,672 - 477 23 Loss on disposition of real estate assets - disc. operations - 1,627 - - - - 649 Adjusted EBITDA 328,825$ 324,303$ 78,162$ 78,581$ 87,313$ 84,769$ 79,444$ General and administrative 29,738 31,275 7,817 6,797 7,080 8,044 8,081 Shelf registration costs in G&A - (269) - - - - - Interest rate swap valuation adjustment (2,634) (4,946) - - (1,319) (1,315) (1,322) Interest expense associated with interest rate swaps 2,642 5,317 - - 1,321 1,321 1,330 Lease termination income (1) (4,237) (6,291) (995) (808) (1,295) (1,139) (1,829) Operating loss from discontinued operations - GAAP basis - 1,025 - - - - 29 Net Operating Income - GAAP Basis 354,334$ 350,414$ 84,984$ 84,570$ 93,100$ 91,680$ 85,733$ Less Net Operating Income from: Acquisitions (2) (62,461) (12,239) (20,256) (16,238) (12,702) (13,265) (7,234) Dispositions (3) (33,358) (74,035) (1,602) (3,663) (14,508) (13,585) (13,136) Same Store NOI - GAAP Basis (4) 258,515$ 264,140$ 63,126$ 64,669$ 65,890$ 64,830$ 65,363$ Supplemental Information - Q4 2015 29 (2) Reflects activity for the following properties acquired since January 1, 2014, for all periods presented: 229 West 43rd Street, 315 Park Avenue South, 116 Huntington Avenue, 650 California Street, and 221 Main Street. Net Operating Income and Same Store Net Operating Income - GAAP Basis (Reconciliation to Net Income) Three Months Ended (1) Includes adjustments for straight-line rent related to lease terminations. (4) Includes CXP's pro rata share (51%) in the Market Square Joint Venture for all periods presented. Columbia Property Trust, Inc. (3) Reflects activity for the following properties sold since January 1, 2014, for all periods presented: 1881 Campus Commons, Market Square (49% share), 170 Park Avenue, 180 Park Avenue, 1580 West Nursery Road, Acxiom, Highland Landmark III, The Corridors III, 215 Diehl Road, 544 Lakeview, Bannockburn Lake III, 550 King Street, Robbins Road, Lenox Park Buildings, 9 Technology Drive, 7031 Columbia Gateway Drive, 200 South Orange, and 160 Park Avenue. Twelve Months Ended
Supplemental Information - Q4 2015 30 Columbia Property Trust, Inc. Definitions Funds From Operations (“FFO”): FFO, as defined by the National Association of Real Estate Investment Trusts (“NAREIT”), represents net income (computed in accordance with GAAP), plus depreciation of real estate assets and amortization of lease-related costs, excluding gains (losses) on sales of real estate and impairment losses on real estate assets. The Company computes FFO in accordance with NAREIT's definition, which may differ from the methodology for calculating FFO, or similarly titled measures, used by other companies and this may not be comparable to those presentations. We consider FFO an appropriate supplemental performance measure given its wide use by and relevance to investors and analysts. FFO, reflecting the assumption that real estate asset values rise or fall with market conditions, principally adjusts for the effects of GAAP depreciation and amortization of real estate assets, which assume that the value of real estate diminishes predictably over time. Normalized FFO: We calculate Normalized FFO by starting with FFO, as defined by NAREIT, and adjusting for certain non-recurring items, including: (i) real estate acquisition-related costs, (ii) listing costs, (iii) loss on interest rate swaps and (iv) loss on early extinguishment of debt. Such items create significant earnings volatility. We believe Normalized FFO provides a meaningful measure of our operating performance and more predictability regarding future earnings potential. Normalized FFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating performance to net income; therefore, it should not be compared to other REITs' equivalent to Normalized FFO. EBITDA: EBITDA is defined as net income before interest, taxes, depreciation and amortization. We believe EBITDA is a reasonable measure of our liquidity. EBITDA is a non-GAAP financial measure and should not be viewed as an alternative measurement of cash flows from operating activities or other GAAP basis liquidity measures. Other REITs may calculate EBITDA differently and our calculation should not be compared to that of other REITs. Included in this supplemental report are non-GAAP financial measures, which are accompanied by what we consider the most directly comparable financial measures calculated and presented in accordance with GAAP. These measures include earnings (or components of earnings), as defined, from both continuing operations and discontinued operations. A description of the non-GAAP financial measures we present and a statement of the reasons why management believes the non-GAAP measures provide useful information to investors about the company's financial condition and results of operations can be found below. Adjusted Funds From Operations (“AFFO”): AFFO is calculated by adjusting Normalized FFO to exclude (i) additional amortization of lease assets (liabilities), (ii) straight-line rental income, (iii) gain (loss) on interest rate swaps, (iv) recurring capital expenditures, and adding back (v) stock based compensation expense and (vi) non-cash interest expense. Because AFFO adjusts for income and expenses that we believe are not reflective of the sustainability of our ongoing operating performance, we believe AFFO provides useful supplemental information. AFFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating performance to net income, as an alternative to net cash flows from operating activities or as a measure of our liquidity. Annualized Lease Revenue (“ALR”): ALR is the sum of (i) annualized rental payments (defined as base rent plus operating expense reimbursements, excluding rental abatements) for executed and commenced leases as well as leases executed but not yet commenced for vacant space, and (ii) annualized parking revenues, payable either under the terms of an executed lease or vendor contract. ALR excludes rental payments for executed leases that have not yet commenced for space covered by an existing lease. Adjusted EBITDA: Adjusted EBITDA is defined as net income before interest, taxes, depreciation and amortization and incrementally removing any impairment losses, gains or losses from sales of property, real estate acquisition-related costs, discontinued operations adjustments, or other extraordinary items. We do not include impairment losses in this measure because we feel these types of losses create volatility in our earnings and make it difficult to determine the earnings generated by our ongoing business. We believe adjusted EBITDA is a reasonable measure of our liquidity. Adjusted EBITDA is a non-GAAP financial measure and should not be viewed as an alternative measurement of cash flows from operating activities or other GAAP basis liquidity measures. Other REITs may calculate adjusted EBITDA differently and our calculation should not be compared to that of other REITs. GAAP Net Operating Income (“GAAP NOI”): GAAP NOI is defined as Adjusted EBITDA adjusted for (i) portfolio general and administrative expense, (ii) interest rate swap valuation adjustments, (iii) interest expense associated with interest rates swaps, (iv) GAAP lease termination income, (v) discontinued operations adjustments. The company uses this measure to assess its operating results and believes it is important in assessing operating performance. GAAP NOI is a non- GAAP measure which does not have any standard meaning prescribed by GAAP and therefore may not be comparable to similar measures presented by other companies. Recurring Capital Expenditures: Recurring Capital Expenditures are defined as capital expenditures incurred to maintain the building structure and functionality, and to lease space at our properties in their current condition. Recurring capital expenditures include building capital, tenant improvements, and leasing commissions. This measure excludes capital for first generation leasing and acquisitions. Non-Recurring Capital Expenditures : Non-Recurring Capital Expenditures are defined as capital expenditures incurred to repurpose a building and to lease space to first generation tenants. Capital expenditures that don’t meet the definition of “recurring capital expenditures” are also included in this measure. Same Store Net Operating Income (“Same Store NOI”): Same Store NOI is calculated as the NOI attributable to the properties owned or placed in service during the entire span of the current and prior year reporting periods. We believe Same Store NOI is an important measure of comparison of our stabilized properties’ operating performance. Other REITs may calculate Same Store NOI differently and our calculation should not be compared to that of other REITs. Cash Net Operating Income (“Cash NOI”): Cash NOI is defined as Adjusted EBITDA adjusted for (i) portfolio general and administrative expense, (ii) interest rate swap valuation adjustments, (iii) interest expense associated with interest rates swaps, (iv) GAAP lease termination income, (v) non-cash property operations, (vi) straight-line rental income, (vii) net effect of above/(below) market amortization, and (viii) discontinued operations adjustments. The company uses this measure to assess its operating results and believes it is important in assessing operating performance. Cash NOI is a non-GAAP measure which does not have any standard meaning prescribed by GAAP and therefore may not be comparable to similar measures presented by other companies.
