11. 2016 INVESTOR PRESENTATION 1
FORWARD-LOOKING STATEMENTS Certain statements contained in this presentation other than historical facts may be considered forward-looking statements. Such statements include, in particular, statements about our plans, strategies, and prospects, and are subject to certain risks and uncertainties, including known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of our performance in future periods. 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. We make no representations or warranties (express or implied) about the accuracy of any such forward-looking statements contained in this presentation, and we do not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Any such forward-looking statements are subject to risks, uncertainties, and other factors and are based on a number of assumptions involving judgments with respect to, among other things, future economic, competitive, and market conditions, all of which are difficult or impossible to predict accurately. To the extent that our assumptions differ from actual conditions, our ability to accurately anticipate results expressed in such forward-looking statements, including our ability to generate positive cash flow from operations, make distributions to stockholders, and maintain the value of our real estate properties, may be significantly hindered. See Item 1A in the Company's most recently filed Annual Report on Form 10-K for the year ended December 31, 2015, for a discussion of some of the risks and uncertainties that could cause actual results to differ materially from those presented in our forward-looking statements. The risk factors described in our Annual Report are not the only ones we face but do represent those risks and uncertainties that we believe are material to us. Additional risks and uncertainties not currently known to us or that we currently deem immaterial may also harm our business. For additional information, including reconciliations of any non-GAAP financial measures found herein, please reference the supplemental report furnished by the Company on a Current Report on Q3 2016 Form 8-K Furnished in October 2016. The names, logos and related product and service names, design marks, and slogans are the trademarks or service marks of their respective companies. When evaluating the Company’s performance and capital resources, management considers the financial impact of investments held directly and through unconsolidated joint ventures. This report includes financial and operational information for our wholly-owned investments and our proportional interest in unconsolidated investments. We do not control the Market Square Joint Venture and recognize that proportional financial data may not accurately depict all of the legal and economic implications of our interest in this joint venture. Unless otherwise noted, all data herein is as of September 30, 2016, and pro forma for the pay down of the Revolving Credit Facility on October 3, 2016, with proceeds from the sale of 80 Park Plaza, as well as for the sale of 9127 S. Jamaica Street, which closed on October 12, 2016. 2
COMPANY OVERVIEW 3
COLUMBIA PROPERTY TRUST Company Overview $4.7 B CXP Baa2 / BBB NYSE-Listed Gross Real Estate Assets Rated, Investment Grade Experienced senior management team EXPERIENCED LEADERSHIP Regional leadership platforms in NYC, SF and DC Over 70% of portfolio in four high-barrier markets 1 TOP MARKETS Prime CBD locations $2.6B invested in high-barrier markets since 2011 FOCUSED STRATEGY More than 50 non-core assets sold, totaling $2.7B Proactive leasing: 8M SF in last five years TRACK RECORD OF VALUE CREATION Effective capital program across portfolio FLEXIBLE BALANCE SHEET 33.6% debt-to-gross real estate assets Investment grade rating (Baa2 / BBB Stable) 1 Based on gross real estate assets and pro forma for dispositions in process. High-barrier markets are New York; San Francisco; Washington, 4 D.C.; and Boston.
PORTFOLIO PROFILE As of Sept. 30, 2016 PORTFOLIO COMPOSITION 1 90.7 % Los Angeles 2.4% Leased Planned Boston Dispositions & 3.3% Other Pittsburgh 11.4% New York 11.2 M 4.1% 29.1% CBD 71% Total SF 2 Suburban Houston 14% 5.7% Urban Infill Washington, D.C. 15% 6.6 8.1% Atlanta San Francisco 9.7% Yrs. avg. weighted 26.2% lease term 1 Portfolio composition charts based on gross real estate assets and reflects 51% of the gross real estate assets of the Market Square joint 5 venture, in which CXP owns a 51% interest through an unconsolidated joint venture. 2 Includes 100% of Market Square.
COMPETITIVE POSITIONING Pro forma for dispositions in process HIGH-BARRIER MARKET High Barrier PORTFOLIO QUALITY CONCENTRATION (five markets) Low Barrier (all other markets) NET OPERATING INCOME $50.00 100% $42.50 7% 18% 19% $45.00 90% $38.50 24% 29% $37.00 NET RENT PSF $35.50 $40.00 80% 50% $29.20 60% $35.00 70% $27.00 60% $30.00 100% 97% $20.25 100% 100% 100% 50% $19.25 $25.00 $19.25 93% 82% 81% 40% $14.50 $20.00 $14.50 76% $13.00 71% 30% $15.00 50% 41% 20% $10.00 10% $5.00 3% 0% 0% 0% 0% $0.00 PGRE SLG ESRT VNO BXP CXP KRC PDM EQC BDN CUZ HIW PGRE BXP SLG VNO CXP KRC ESRT PDM BDN HIW CUZ EQC High-Barrier REITs Low-Barrier REITs High-Barrier REITs Low-Barrier REITs Source: Green Street Advisors Company Snapshots as of June 30, 2016 except for CXP, for which Q3’16 Supplemental Financial Report 6 was used. “High-Barrier Markets” as defined by Green Street Advisors. Cousins Properties completed a merger with Parkway and a subsequent spin off of combined Houston assets that closed in Q4’16; data shown is pre-transaction.
TEAM Executive and Real Estate Management DAVID DOWDNEY WENDY GILL DARIK AFSHANI NELSON MILLS KELLY LIM LINDA BOLAN SVP – VP – Asset CEO and Director SVP - Corporate VP – Eastern Region, VP – National Western Region Operations and Chief Management New York Property Management Accounting Officer and Sustainability JIM FLEMING KEVIN HOOVER MICHAEL SCHMIDT ADAM POPPER AMY TABB MARK WITSCHORIK Executive VP SVP – Portfolio SVP – VP – Western Region VP – Business VP – Eastern Region, and CFO Management Eastern Region Development and Washington D.C. Operations 7
OPERATIONS & LEASING 8
2016 LEASING ACCOMPLISHMENTS 818 K HIGHLIGHTS SF of leases signed Lease for entire 222 E. 41 st St. (New York) to NYU • YTD 2016 Langone commenced 10.5.2016 Increased momentum at 315 Park Ave. S. (New York) • with lease to Winton Capital for premium top two floors Positioned SanTan Corporate Center (Phoenix) for • disposition with full-building Toyota renewal Attracting strong interest through speculative suite • programs at multiple assets, with several <5K leases already executed Renovations at 116 Huntington, 80 M Street, and • Market Square are also generating significant activity 9
LEASING OPPORTUNITY New York Washington, D.C. Does not include dispositions in process San Francisco Other VACANCY NEAR-TERM LEASE EXPIRATION SCHEDULE 12% 900 Thousands 800 10% LEASE REVENUE 700 8% SQUARE FEET 600 ANNUALIZED 500 6% 400 4% 300 200 2% 100 0% 0 2016 2017 2018 2019 2020 650 California – 162,000 SF University Circle Energy Center I Three Glenlake 315 Park Ave. S. Market Square – 97,000 SF Credit Suisse DLA Piper (Houston) (Atlanta) 80 M Street – 112,000 SF 147,000 SF 119,000 SF Amec Foster Wh. Newell Rubbermaid One Glenlake – 102,000 SF 332,000 SF 355,000 SF 10
CAPITAL SOURCES & ALLOCATION 11
FLEXIBLE AND POISED FOR GROWTH Pro forma for dispositions in process CONSERVATIVE LIQUIDITY LEVERAGE Unencumbered asset pool of Baa2 BBB • $3.8 billion (80% of total Stable / Stable portfolio) Ratings $500M line of credit • 28 % / 72 % Secured Unsecured $190M cash balance • 6.65 X 33.6 % $700M of investment grade • bonds issued in 2015-16 Debt to GRE Assets Net Debt to Adj. EBITDA 1 1 Net Debt is calculated as the total principal amount of debt outstanding, minus cash and cash equivalents and discounts on bonds payable. 12
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