Financial Information for Parent Guarantor, Other Guarantor Subsidiaries, and Non-Guarantor Subsidiaries | Financial Information for Parent Guarantor, Other Guarantor Subsidiaries, and Non-Guarantor Subsidiaries The 2026 Bonds Payable and the 2025 Bonds Payable (see Note 6, Bonds Payable ) were issued by Columbia Property Trust OP, and are guaranteed by Columbia Property Trust. In accordance with SEC Rule 3-10(c), Columbia Property Trust includes herein condensed consolidating financial information in lieu of separate financial statements of the subsidiary issuer (Columbia Property Trust OP), as defined in the bond indentures, because all of the following criteria are met: (1) the subsidiary issuer (Columbia Property Trust OP) is 100% owned by the parent company guarantor (Columbia Property Trust); (2) the guarantees are 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. Columbia Property Trust has corrected the presentation of intercompany cash transfers between the REIT Parent and its subsidiaries in the consolidating statements of cash flow. Instead of showing one amount for intercompany transfers between each entity group, intercompany transfers are broken out by cash flow type (i.e. operating, investing, and financing) for all periods presented, consistent with the equity method of accounting. All such changes are eliminated in consolidation, and therefore do not impact Columbia Property Trust's consolidated financial statement totals. Management has concluded that the effect of this correction is not material to the consolidated financial statements. This change had the following impact to the condensed consolidating statement of cash flows for the years ended December 31, 2016 : increase to operating cash flows for the parent and issuer of $53.1 million and $136.7 million , respectively; and increase (decrease) in investing cash flows for the parent, issuer, and non-guarantors of $(281.8) million , $568.5 million and $603.7 million , respectively; and increase (decrease) in financing cash flows for the parent, issuer, and non-guarantors of $228.7 million , $(705.2) million , and $(603.7) million , respectively. This change had the following impact to the condensed consolidating statement of cash flows for the years ended December 31, 2015 : increase to operating cash flows for the parent of $15.7 million ; and increase (decrease) in investing cash flows for the parent, issuer, and non-guarantors of $1,045.9 million , $(145.3) million and $(468.0) million , respectively; and increase (decrease) in financing cash flows for the parent, issuer, and non-guarantors of $(1,061.6) million , $145.3 million and $468.0 million , respectively. The impact to individual financial statement captions within the condensed consolidating statement of cash flows is footnoted below. Set forth below are Columbia Property Trust's condensed consolidating balance sheets as of December 31, 2017 and 2016 (in thousands), as well as its condensed consolidating statements of operations and its condensed consolidating statements of comprehensive income for 2017 , 2016 , and 2015 (in thousands); and its condensed consolidating statements of cash flows for 2017 , 2016 , and 2015 (in thousands). Condensed Consolidating Balance Sheets (in thousands) As of December 31, 2017 Columbia Property Trust Columbia Property Trust OP Non- Guarantors Consolidating Adjustments Columbia Property Trust Assets: Real Estate Assets, at Cost: Land $ — $ — $ 825,208 $ — $ 825,208 Buildings and improvements, net — 2,110 2,061,309 — 2,063,419 Intangible lease assets, net — — 199,260 — 199,260 Construction in progress — — 44,742 — 44,742 Total real estate assets — 2,110 3,130,519 — 3,132,629 Investment in unconsolidated joint ventures — 943,241 1 — 943,242 Cash and cash equivalents 692 5,079 3,796 — 9,567 Investment in subsidiaries 2,238,577 1,186,594 — (3,425,171 ) — Tenant receivables, net of allowance — 30 2,098 — 2,128 Straight-line rent receivable — — 92,235 — 92,235 Prepaid expenses and other assets 317,364 336,598 19,375 (645,654 ) 27,683 Intangible lease origination costs, net — — 42,959 — 42,959 Deferred lease costs, net — — 141,096 — 141,096 Investment in development authority bonds — — 120,000 — 120,000 Total assets $ 2,556,633 $ 2,473,652 $ 3,552,079 $ (4,070,825 ) $ 4,511,539 Liabilities: Line of credit and notes payable, net $ — $ 899,168 $ 715,327 $ (643,310 ) $ 971,185 Bonds payable, net — 693,756 — — 693,756 Accounts payable, accrued expenses, and accrued capital expenditures 732 10,325 113,949 (4 ) 125,002 Dividends payable 23,961 — — — 23,961 Due to affiliates — — 2,340 (2,340 ) — Deferred income 4 81 18,396 — 18,481 Intangible lease liabilities, net — — 27,218 — 27,218 Obligations under capital leases — — 120,000 — 120,000 Total liabilities 24,697 1,603,330 997,230 (645,654 ) 1,979,603 Equity: Total equity 2,531,936 870,322 2,554,849 (3,425,171 ) 2,531,936 Total liabilities and equity $ 2,556,633 $ 2,473,652 $ 3,552,079 $ (4,070,825 ) $ 4,511,539 Condensed Consolidating Balance Sheets (in thousands) As of December 31, 2016 Columbia Property Trust Columbia Property Trust OP Non- Guarantors Consolidating Adjustments Columbia Property Trust Assets: Real Estate Assets, at Cost: Land $ — $ — $ 751,351 $ — $ 751,351 Building and improvements, net — 219 2,120,931 — 2,121,150 Intangible lease assets, net — — 193,311 — 193,311 Construction in progress — — 36,188 — 36,188 Real estate assets held for sale, net — 34,956 377,550 — 412,506 Total real estate assets — 35,175 3,479,331 — 3,514,506 Investment in unconsolidated joint ventures — 127,346 — — 127,346 Cash and cash equivalents 174,420 16,509 25,156 — 216,085 Investment in subsidiaries 2,047,922 1,782,752 — (3,830,674 ) — Tenant receivables, net of allowance — — 7,163 — 7,163 Straight-line rent receivable — — 64,811 — 64,811 Prepaid expenses and other assets 317,153 262,216 15,593 (570,687 ) 24,275 Intangible lease origination costs, net — — 54,279 — 54,279 Deferred lease costs, net — — 125,799 — 125,799 Investment in development authority bonds — — 120,000 — 120,000 Other assets held for sale, net — 3,767 41,814 (52 ) 45,529 Total assets $ 2,539,495 $ 2,227,765 $ 3,933,946 $ (4,401,413 ) $ 4,299,793 Liabilities: Lines of credit and notes payable, net $ — $ 447,643 $ 704,585 $ (430,762 ) $ 721,466 Bonds payable, net — 692,972 — — 692,972 Accounts payable, accrued expenses, and accrued capital expenditures — 10,395 120,633 — 131,028 Dividends payable 36,727 — — — 36,727 Due to affiliates — 58 1,534 (1,592 ) — Deferred income — — 19,694 — 19,694 Intangible lease liabilities, net — — 33,375 — 33,375 Obligations under capital leases — — 120,000 — 120,000 Liabilities held for sale, net — 2,651 177,497 (138,385 ) 41,763 Total liabilities 36,727 1,153,719 1,177,318 (570,739 ) 1,797,025 Equity: Total equity 2,502,768 1,074,046 2,756,628 (3,830,674 ) 2,502,768 Total liabilities and equity $ 2,539,495 $ 2,227,765 $ 3,933,946 $ (4,401,413 ) $ 4,299,793 Consolidating Statements of Operations (in thousands) For the Year Ended December 31, 2017 Columbia Property Trust Columbia Property Trust OP Non- Guarantors Consolidating Adjustments Columbia Property Trust Revenues: Rental income $ — $ 51 $ 257,368 $ (360 ) $ 257,059 Tenant reimbursements — (60 ) 23,571 — 23,511 Hotel income — — 1,339 — 1,339 Asset and property management fee income 1,908 — 1,874 — 3,782 Other property income — — 3,327 (18 ) 3,309 1,908 (9 ) 287,479 (378 ) 289,000 Expenses: Property operating costs — 308 87,857 (360 ) 87,805 Hotel operating costs — — 2,089 — 2,089 Asset and Property Management Fee Expenses: Related-party — 3 — (3 ) — Other — — 918 — 918 Depreciation — 869 79,525 — 80,394 Amortization — 5 32,398 — 32,403 General and administrative – corporate 259 9,048 25,674 (15 ) 34,966 General and administrative – joint ventures — — 1,454 — 1,454 259 10,233 229,915 (378 ) 240,029 1,649 (10,242 ) 57,564 — 48,971 Other Income (Expense): Interest expense — (44,259 ) (38,238 ) 21,981 (60,516 ) Interest and other income 16,535 7,762 7,213 (21,981 ) 9,529 Loss on early extinguishment of debt — — (325 ) — (325 ) 16,535 (36,497 ) (31,350 ) — (51,312 ) Income (loss) before income taxes, unconsolidated entities, and gains on sales of real estate assets 18,184 (46,739 ) 26,214 — (2,341 ) Income tax expense — (1 ) 214 — 213 Income (loss) from unconsolidated entities 157,857 198,620 — (353,826 ) 2,651 Income before gains on sales of real estate assets 176,041 151,880 26,428 (353,826 ) 523 Gains on sales of real estate assets — 11,050 164,468 — 175,518 Net income $ 176,041 $ 162,930 $ 190,896 $ (353,826 ) $ 176,041 Consolidating Statements of Operations (in thousands) For the Year Ended December 31, 2016 Columbia Property Trust Columbia Property Trust OP Non- Guarantors Consolidating Adjustments Columbia Property Trust Revenues: Rental income $ — $ 3,622 $ 362,947 $ (383 ) $ 366,186 Tenant reimbursements — 1,963 67,807 — 69,770 Hotel income — — 22,661 — 22,661 Asset and property management fee income 574 — 1,548 — 2,122 Other property income 406 — 12,804 (406 ) 12,804 980 5,585 467,767 (789 ) 473,543 Expenses: Property operating costs — 3,209 152,142 (383 ) 154,968 Hotel operating costs — — 18,686 — 18,686 Asset and Property Management Fee Expenses: Related-party — 154 — (154 ) — Other — — 1,415 — 1,415 Depreciation — 2,760 105,783 — 108,543 Amortization — 364 56,411 — 56,775 General and administrative – corporate 154 8,566 25,408 (252 ) 33,876 154 15,053 359,845 (789 ) 374,263 826 (9,468 ) 107,922 — 99,280 Other Income (Expense): Interest expense — (46,797 ) (50,302 ) 29,490 (67,609 ) Interest and other income 14,268 15,272 7,238 (29,490 ) 7,288 Loss on early extinguishment of debt — (18,987 ) (10 ) — (18,997 ) 14,268 (50,512 ) (43,074 ) — (79,318 ) Income (loss) before income taxes, unconsolidated entities, and gains on sales of real estate assets 15,094 (59,980 ) 64,848 — 19,962 Income tax expense — (20 ) (425 ) — (445 ) Income (loss) from unconsolidated entities 69,187 113,105 — (189,853 ) (7,561 ) Income before gains (loss) on sales of real estate assets 84,281 53,105 64,423 (189,853 ) 11,956 Gains (loss) on sales of real estate assets — — 72,325 — 72,325 Net income $ 84,281 $ 53,105 $ 136,748 $ (189,853 ) $ 84,281 Consolidating Statements of Operations (in thousands) For the Year Ended December 31, 2015 Columbia Property Trust Columbia Property Trust OP Non- Guarantors Consolidating Adjustments Columbia Property Trust Revenues: Rental income $ — $ 2,662 $ 433,763 $ (377 ) $ 436,048 Tenant reimbursements — 1,316 98,339 — 99,655 Hotel income — — 24,309 — 24,309 Asset and property management fee income 171 — 434 — 605 Other property income — — 5,781 (333 ) 5,448 171 3,978 562,626 (710 ) 566,065 Expenses: Property operating costs — 3,065 185,390 (377 ) 188,078 Hotel operating costs — — 19,615 — 19,615 Asset and Property Management Fee Expenses: Related-party — 100 — (100 ) — Other — — 1,816 — 1,816 Depreciation — 2,571 128,919 — 131,490 Amortization — 237 86,891 — 87,128 General and administrative – corporate 152 8,754 21,010 (233 ) 29,683 Acquisition expenses — 11 3,664 — 3,675 152 14,738 447,305 (710 ) 461,485 19 (10,760 ) 115,321 — 104,580 Other Income (Expense): Interest expense — (44,919 ) (67,076 ) 26,699 (85,296 ) Interest and other income 14,141 12,565 7,247 (26,699 ) 7,254 Loss on interest rate swaps — (1,101 ) (9 ) — (1,110 ) Loss on early extinguishment of debt — (1,050 ) (2,099 ) — (3,149 ) 14,141 (34,505 ) (61,937 ) — (82,301 ) Income before income taxes, unconsolidated entities, and gains on sales of real estate assets 14,160 (45,265 ) 53,384 — 22,279 Income tax expense — (25 ) (353 ) — (378 ) Income (loss) from unconsolidated entities 30,459 59,165 — (90,766 ) (1,142 ) Income before gains on sales of real estate assets 44,619 13,875 53,031 (90,766 ) 20,759 Gains on sales of real estate assets — (19 ) 23,879 — 23,860 Net income $ 44,619 $ 13,856 $ 76,910 $ (90,766 ) $ 44,619 Consolidating Statements of Comprehensive Income (in thousands) For the Year Ended December 31, 2017 Columbia Property Trust Columbia Property Trust OP Non- Guarantors Consolidating Adjustments Columbia Property Trust Net income $ 176,041 $ 162,930 $ 190,896 $ (353,826 ) $ 176,041 Market value adjustment to interest rate swap 1,786 1,786 — (1,786 ) 1,786 Comprehensive income $ 177,827 $ 164,716 $ 190,896 $ (355,612 ) $ 177,827 For the Year Ended December 31, 2016 Columbia Property Trust Columbia Property Trust OP Non- Guarantors Consolidating Adjustments Columbia Property Trust Net income $ 84,281 $ 53,105 $ 136,748 $ (189,853 ) $ 84,281 Market value adjustment to interest rate swap 1,553 1,553 — (1,553 ) 1,553 Comprehensive income $ 85,834 $ 54,658 $ 136,748 $ (191,406 ) $ 85,834 For the Year Ended December 31, 2015 Columbia Property Trust Columbia Property Trust OP Non- Guarantors Consolidating Adjustments Columbia Property Trust Net income $ 44,619 $ 13,856 $ 76,910 $ (90,766 ) $ 44,619 Market value adjustment to interest rate swap (1,570 ) (1,570 ) — 1,570 (1,570 ) Settlement of interest rate swap 1,102 1,102 — (1,102 ) 1,102 Comprehensive income $ 44,151 $ 13,388 $ 76,910 $ (90,298 ) $ 44,151 Consolidating Statements of Cash Flows (in thousands) For the Year Ended December 31, 2017 Columbia Property Trust Columbia Property Trust OP Non- Guarantors Consolidating Adjustments Columbia Property Trust Cash flows from operating activities $ 3,966 $ (46,268 ) $ 104,226 $ — $ 61,924 Cash Flows From Investing Activities: Net proceeds from the sale of real estate — 49,531 688,100 — 737,631 Investment in real estate and related assets — (2,203 ) (716,093 ) — (718,296 ) Investment in unconsolidated joint ventures — (369,043 ) — — (369,043 ) Distributions in excess of earnings from unconsolidated joint ventures — 1,985 — — 1,985 Investments in subsidiaries (8,671 ) (97,505 ) — 106,176 — Net cash provided by (used in) investing activities (8,671 ) (417,235 ) (27,993 ) 106,176 (347,723 ) Cash Flows From Financing Activities: Borrowings, net of fees — 781,731 — — 781,731 Repayments — (331,000 ) (202,427 ) — (533,427 ) Redemptions of common stock (59,462 ) — — — (59,462 ) Distributions (109,561 ) 1,342 104,834 (106,176 ) (109,561 ) Net cash provided by (used in) financing activities (169,023 ) 452,073 (97,593 ) (106,176 ) 79,281 Net decrease in cash and cash equivalents (173,728 ) (11,430 ) (21,360 ) — (206,518 ) Cash and cash equivalents, beginning of period 174,420 16,509 25,156 — 216,085 Cash and cash equivalents, end of period $ 692 $ 5,079 $ 3,796 $ — $ 9,567 Consolidating Statements of Cash Flows (in thousands) For the Year Ended December 31, 2016 Columbia Property Trust Columbia Property Trust OP Non- Guarantors Consolidating Adjustments Columbia Property Trust Cash flows from operating activities $ 53,980 $ 86,846 $ 242,118 $ (189,853 ) $ 193,091 Cash Flows From Investing Activities: Net proceeds from the sale of real estate (1) — — 613,732 — 613,732 Investment in real estate and related assets — (2,157 ) (69,750 ) — (71,907 ) Investment in unconsolidated joint ventures — (16,212 ) — — (16,212 ) Distributions from subsidiaries (2) 321,911 568,480 — (890,391 ) — Net cash provided by investing activities 321,911 550,111 543,982 (890,391 ) 525,613 Cash Flows From Financing Activities: Borrowings, net of fees (3) — 780,577 — — 780,577 Repayments (4) — (1,051,000 ) (44,460 ) — (1,095,460 ) Prepayments to settle debt and interest rate swap (5) — (17,921 ) — — (17,921 ) Redemptions of common stock (53,986 ) — — — (53,986 ) Distributions (6) (148,474 ) (347,073 ) (733,171 ) 1,080,244 (148,474 ) Net cash used in financing activities (202,460 ) (635,417 ) (777,631 ) 1,080,244 (535,264 ) Net increase in cash and cash equivalents 173,431 1,540 8,469 — 183,440 Cash and cash equivalents, beginning of period 989 14,969 16,687 — 32,645 Cash and cash equivalents, end of period $ 174,420 $ 16,509 $ 25,156 $ — $ 216,085 (1) Net proceeds from the sale of real estate increased (decreased) by $(603.7) million and $603.7 million for the parent and non-guarantors, respectively. (2) Distributions from subsidiaries increased (decreased) by $321.9 million , $568.5 million , and $(890.4) million for the parent, issuer, and eliminations, respectively. (3) Borrowings, net of fees, increased (decreased) by $(781.4) million and $781.4 million for the parent and issuer, respectively. (4) Repayments increased (decreased) by $1,090.0 million , $(1,051.0) million , and $(39.0) million for the parent, issuer, and non-guarantors respectively. (5) Prepayments to settle debt and interest rate swap increased (decreased) by $17.9 million and $(17.9) million for the parent and issuer, respectively. (6) Distributions (increased) decreased by $(347.1) million , $(733.2) million , and $1,080.3 million , for the issuer, non-guarantors, and eliminations, respectively. The intercompany transfers, net line item is no longer presented based on the changes to the other line items described herein. For the Year Ended December 31, 2015 Columbia Property Trust Columbia Property Trust OP Non- Guarantors Consolidating Adjustments Columbia Property Trust Cash flows from operating activities $ 15,743 $ (50,601 ) $ 273,655 $ (15,717 ) $ 223,080 Cash Flows From Investing Activities: Net proceeds from the sale of real estate (1) — — 596,734 — 596,734 Investments in real estate and related assets (2) — — (1,167,933 ) — (1,167,933 ) Investment in unconsolidated joint ventures — (5,500 ) — — (5,500 ) Investments in subsidiaries (3) (4,615 ) (628,393 ) — 633,008 — Net cash used in investing activities (4,615 ) (633,893 ) (571,199 ) 633,008 (576,699 ) Cash Flows From Financing Activities: Borrowings, net of fees (3) — 2,223,778 — — 2,223,778 Repayments — (1,518,000 ) (336,512 ) — (1,854,512 ) Prepayments to settle debt and interest rate swap — (1,102 ) (2,063 ) — (3,165 ) Redemptions of common stock (17,057 ) — — — (17,057 ) Distributions (4) (112,570 ) (15,717 ) 633,008 (617,291 ) (112,570 ) Net cash provided by (used in) financing activities (129,627 ) 688,959 294,433 (617,291 ) 236,474 Net increase (decrease) in cash and cash equivalents (118,499 ) 4,465 (3,111 ) — (117,145 ) Cash and cash equivalents, beginning of period 119,488 10,504 19,798 — 149,790 Cash and cash equivalents, end of period $ 989 $ 14,969 $ 16,687 $ — $ 32,645 (1) Net proceeds from the sales of real estate increased (decreased) by $(72.4) million , $(524.4) million , and $596.7 million for the parent, issuer, and non-guarantors, respectively. (2) Investments in real estate and related assets increased (decrease) by $57.2 million , $1,007.5 million , and $(1,064.7) million for the parent, issuer, and non-guarantors, respectively. (3) Investments in subsidiaries increased (decreased) by $1,061.1 million , $(628.4) million , and $(432.7) million for the parent, issuer, and eliminations, respectively. (4) Distributions (increased) decreased by $(15.7) million , $633.0 million , and $(617.3) million , for the issuer, non-guarantors, and eliminations, respectively. The intercompany transfers, net line item is no longer presented based on the changes to the other line items described herein. |