Financial Information for Parent Guarantor, Issuer Subsidiary and Non-Guarantor Subsidiaries | Financial Information for Parent Guarantor, Issuer Subsidiary, and Non-Guarantor Subsidiaries The 2025 Bonds Payable and the 2018 Bonds Payable (see Note 6, Bonds Payable ) were issued by Columbia Property Trust OP, and are guaranteed by Columbia Property Trust. In accordance with SEC Rule 3-10(c), Columbia Property Trust includes herein condensed consolidating financial information in lieu of separate financial statements of the subsidiary issuer (Columbia Property Trust OP), as defined in the bond indentures, because all of the following criteria are met: (1) The subsidiary issuer (Columbia Property Trust OP) is 100% owned by the parent company guarantor (Columbia Property Trust); (2) The guarantee is full and unconditional; and (3) No other subsidiary of the parent company guarantor (Columbia Property Trust) guarantees the 2025 Bonds Payable or the 2018 Bonds Payable. Columbia Property Trust uses the equity method with respect to its investment in subsidiaries included in its condensed consolidating financial statements. Set forth below are Columbia Property Trust's condensed consolidating balance sheets as of March 31, 2016 and December 31, 2015 (in thousands), as well as its condensed consolidating statements of operations and its condensed consolidating statements of comprehensive income for the three months ended March 31, 2016 and 2015 (in thousands); and its condensed consolidating statements of cash flows for the three months ended March 31, 2016 and 2015 (in thousands). Condensed Consolidating Balance Sheets (in thousands) As of March 31, 2016 Columbia Property Trust (Guarantor) Columbia Property Trust OP Non- Guarantors Consolidating adjustments Columbia Property Trust Assets: Real estate assets, at cost: Land $ — $ 6,241 $ 858,449 $ — $ 864,690 Buildings and improvements, net — 29,300 2,760,703 — 2,790,003 Intangible lease assets, net — — 245,783 — 245,783 Construction in progress — 25 11,198 — 11,223 Total real estate assets — 35,566 3,876,133 — 3,911,699 Investment in unconsolidated joint venture — 121,784 — — 121,784 Cash and cash equivalents 149,341 22,301 13,734 — 185,376 Investment in subsidiaries 2,087,639 1,882,787 — (3,970,426 ) — Tenant receivables, net of allowance — 141 11,590 — 11,731 Straight-line rent receivable — 1,455 101,912 — 103,367 Prepaid expenses and other assets 317,246 264,587 26,438 (572,492 ) 35,779 Intangible lease origination costs, net — — 70,560 — 70,560 Deferred lease costs, net — 1,983 72,519 — 74,502 Investment in development authority bonds — — 120,000 — 120,000 Total assets $ 2,554,226 $ 2,330,604 $ 4,292,886 $ (4,542,918 ) $ 4,634,798 Liabilities: Line of credit and notes payable $ — $ 888,145 $ 886,563 $ (570,030 ) $ 1,204,678 Bonds payable, net — 595,509 — — 595,509 Accounts payable, accrued expenses, and accrued capital expenditures 6 24,846 60,499 — 85,351 Due to affiliates — 29 2,433 (2,462 ) — Deferred income — 38 21,848 — 21,886 Intangible lease liabilities, net — — 53,154 — 53,154 Obligations under capital leases — — 120,000 — 120,000 Total liabilities 6 1,508,567 1,144,497 (572,492 ) 2,080,578 Equity: Total equity 2,554,220 822,037 3,148,389 (3,970,426 ) 2,554,220 Total liabilities and equity $ 2,554,226 $ 2,330,604 $ 4,292,886 $ (4,542,918 ) $ 4,634,798 Condensed Consolidating Balance Sheets (in thousands) As of December 31, 2015 Columbia Property Trust (Guarantor) Columbia Property Trust OP Non- Guarantors Consolidating adjustments Columbia Property Trust Assets: Real estate assets, at cost: Land $ — $ 6,241 $ 890,226 $ — $ 896,467 Building and improvements, net — 28,913 2,868,518 — 2,897,431 Intangible lease assets, net — — 259,136 — 259,136 Construction in progress — 917 30,930 — 31,847 Total real estate assets — 36,071 4,048,810 — 4,084,881 Investment in unconsolidated joint venture — 118,695 — — 118,695 Cash and cash equivalents 989 14,969 16,687 — 32,645 Investment in subsidiaries 2,333,408 1,901,581 — (4,234,989 ) — Tenant receivables, net of allowance — 52 11,618 — 11,670 Straight-line rent receivable — 1,311 107,751 — 109,062 Prepaid expenses and other assets 317,151 265,615 26,153 (573,071 ) 35,848 Intangible lease origination costs, net — — 77,190 — 77,190 Deferred lease costs, net — 2,055 86,072 — 88,127 Investment in development authority bonds — — 120,000 — 120,000 Total assets $ 2,651,548 $ 2,340,349 $ 4,494,281 $ (4,808,060 ) $ 4,678,118 Liabilities: Lines of credit, term loans, and notes payable $ — $ 812,836 $ 888,340 $ (570,605 ) $ 1,130,571 Bonds payable, net — 595,259 — — 595,259 Accounts payable, accrued expenses, and accrued capital expenditures — 13,313 85,446 — 98,759 Distributions payable 37,354 — — — 37,354 Due to affiliates — 21 2,445 (2,466 ) — Deferred income — 200 24,614 — 24,814 Intangible lease liabilities, net — — 57,167 — 57,167 Obligations under capital leases — — 120,000 — 120,000 Total liabilities 37,354 1,421,629 1,178,012 (573,071 ) 2,063,924 Equity: Total equity 2,614,194 918,720 3,316,269 (4,234,989 ) 2,614,194 Total liabilities and equity $ 2,651,548 $ 2,340,349 $ 4,494,281 $ (4,808,060 ) $ 4,678,118 Consolidating Statements of Operations (in thousands) For the Three Months Ended March 31, 2016 Columbia Property Trust (Guarantor) Columbia Property Trust OP Non- Guarantors Consolidating adjustments Columbia Property Trust Revenues: Rental income $ — $ 849 $ 98,833 $ (96 ) $ 99,586 Tenant reimbursements — 402 19,351 — 19,753 Hotel income — — 4,663 — 4,663 Other property income 245 — 2,420 (88 ) 2,577 245 1,251 125,267 (184 ) 126,579 Expenses: Property operating costs — 771 40,661 (96 ) 41,336 Hotel operating costs — — 4,331 — 4,331 Asset and property management fees: Related-party — 30 — (30 ) — Other — — 330 — 330 Depreciation — 698 28,591 — 29,289 Amortization — 76 15,999 — 16,075 General and administrative 38 2,194 8,316 (58 ) 10,490 38 3,769 98,228 (184 ) 101,851 Real estate operating income (loss) 207 (2,518 ) 27,039 — 24,728 Other income (expense): Interest expense — (12,405 ) (12,881 ) 7,389 (17,897 ) Interest and other income 3,555 3,835 1,804 (7,389 ) 1,805 3,555 (8,570 ) (11,077 ) — (16,092 ) Income before income taxes, unconsolidated joint venture, and loss on sale of real estate 3,762 (11,088 ) 15,962 — 8,636 Income tax expense — (7 ) (70 ) — (77 ) Income from equity investment 2,935 9,293 — (13,780 ) (1,552 ) Income before on loss of real estate assets 6,697 (1,802 ) 15,892 (13,780 ) 7,007 Loss on sale of real estate assets — — (310 ) — (310 ) Net income $ 6,697 $ (1,802 ) $ 15,582 $ (13,780 ) $ 6,697 Consolidating Statements of Operations (in thousands) For the Three Months Ended March 31, 2015 Columbia Property Trust (Guarantor) Columbia Property Trust OP Non- Guarantors Consolidating adjustments Columbia Property Trust Revenues: Rental income $ — $ 544 $ 112,359 $ (94 ) $ 112,809 Tenant reimbursements — 228 28,021 — 28,249 Hotel income — — 4,993 — 4,993 Other property income — — 1,563 (71 ) 1,492 — 772 146,936 (165 ) 147,543 Expenses: Property operating costs — 739 49,109 (94 ) 49,754 Hotel operating costs — — 4,591 — 4,591 Asset and property management fees: Related-party — 14 — (14 ) — Other — — 397 — 397 Depreciation — 623 33,384 — 34,007 Amortization — 56 23,163 — 23,219 General and administrative 38 1,956 6,107 (57 ) 8,044 Acquisition expenses — — 1,995 — 1,995 38 3,388 118,746 (165 ) 122,007 Real estate operating income (loss) (38 ) (2,616 ) 28,190 — 25,536 Other income (expense): Interest expense — (9,225 ) (16,899 ) 4,640 (21,484 ) Interest and other income 1,991 2,657 1,825 (4,640 ) 1,833 Loss on interest rate swaps — — (6 ) — (6 ) Loss on early extinguishment of debt — (477 ) — — (477 ) Income from equity investment 3,645 12,794 — (16,439 ) — 5,636 5,749 (15,080 ) (16,439 ) (20,134 ) Income before income tax benefit 5,598 3,133 13,110 (16,439 ) 5,402 Income tax benefit (expense) — (5 ) 201 — 196 Net income $ 5,598 $ 3,128 $ 13,311 $ (16,439 ) $ 5,598 Consolidating Statements of Comprehensive Income (in thousands) For the Three Months Ended March 31, 2016 Columbia Property Trust (Guarantor) Columbia Property Trust OP Non- Guarantors Consolidating adjustments Columbia Property Trust Net income $ 6,697 $ (1,802 ) $ 15,582 $ (13,780 ) $ 6,697 Market value adjustments to interest rate swaps (4,857 ) (4,857 ) — 4,857 (4,857 ) Comprehensive income $ 1,840 $ (6,659 ) $ 15,582 $ (8,923 ) $ 1,840 For the Three Months Ended March 31, 2015 Columbia Property Trust (Guarantor) Columbia Property Trust OP Non- Guarantors Consolidating adjustments Columbia Property Trust Net income $ 5,598 $ 3,128 $ 13,311 $ (16,439 ) $ 5,598 Market value adjustments to interest rate swaps 159 159 — (159 ) 159 Comprehensive income $ 5,757 $ 3,287 $ 13,311 $ (16,598 ) $ 5,757 Consolidating Statements of Cash Flows (in thousands) For the Three Months Ended March 31, 2016 Columbia Property Trust (Guarantor) Columbia Property Trust OP (the Issuer) Non- Guarantors Columbia Property Trust Cash flows from operating activities $ 206 $ (13,343 ) $ 55,977 $ 42,840 Cash flows from investing activities: Net proceeds from sale of real estate 159,406 — — 159,406 Investment in real estate and related assets — (336 ) (17,642 ) (17,978 ) Investment in unconsolidated joint venture — (4,641 ) — (4,641 ) Net cash used in investing activities 159,406 (4,977 ) (17,642 ) 136,787 Cash flows from financing activities: Borrowings, net of fees — 131,000 — 131,000 Repayments of notes payable — (56,000 ) (1,341 ) (57,341 ) Distributions (74,393 ) — — (74,393 ) Redemptions of common stock (26,162 ) — — (26,162 ) Intercompany contributions (distributions) 89,295 (49,348 ) (39,947 ) — Net cash provided by (used in) financing activities (11,260 ) 25,652 (41,288 ) (26,896 ) Net decrease in cash and cash equivalents 148,352 7,332 (2,953 ) 152,731 Cash and cash equivalents, beginning of period 989 14,969 16,687 32,645 Cash and cash equivalents, end of period $ 149,341 $ 22,301 $ 13,734 $ 185,376 For the Three Months Ended March 31, 2015 Columbia Property Trust (Guarantor) Columbia Property Trust OP (the Issuer) Non- Guarantors Eliminations Columbia Property Trust Cash flows from operating activities $ (32 ) $ (10,292 ) $ 54,856 $ — $ 44,532 Cash flows from investing activities: Net proceeds from sale of real estate — — — — — Investment in real estate and related assets (57,123 ) (494,850 ) (23,364 ) — (575,337 ) Intercompany contributions (distributions) (553,203 ) — — 553,203 — Net cash used in investing activities (610,326 ) (494,850 ) (23,364 ) 553,203 (575,337 ) Cash flows from financing activities: Borrowings, net of fees — 809,078 — — 809,078 Repayments of line of credit and notes payable — (358,000 ) (684 ) — (358,684 ) Distributions (37,523 ) — — — (37,523 ) Redemptions of common stock (620 ) — — — (620 ) Intercompany contributions (distributions) 532,534 51,140 (30,471 ) (553,203 ) — Net cash provided by (used in) financing activities 494,391 502,218 (31,155 ) (553,203 ) 412,251 Net decrease in cash and cash equivalents (115,967 ) (2,924 ) 337 — (118,554 ) Cash and cash equivalents, beginning of period 119,488 10,504 19,798 — 149,790 Cash and cash equivalents, end of period $ 3,521 $ 7,580 $ 20,135 $ — $ 31,236 |