Columbia Property Trust — Investor Presentation (June 2020)
34 slides from Columbia Property Trust's investor presentation, Jun 1, 2020
Slide 1: Investor Presentation 6.2020
INVESTOR PRESENTATION 6.2020 1
Slide 2: Contents
CONTENTS Company Overview Page 3 Case Studies Page 16 Appendix Page 23 2
Slide 3: Why Invest?
WHY INVEST? Exceptional gateway portfolio at discounted valuation: Modernized, boutique office properties in strategic submarkets Durable cash flows: 98% leased with strong rent roll and limited near-term expirations Investment grade balance sheet: Strong liquidity and flexibility on future ca
Slide 4: Desirable Buildings in Prime Locations
DESIRABLE BUILDINGS IN PRIME LOCATIONS 201 California 315 Park Ave. S. 229 W. 43rd St. 114 Fifth Ave. 249 W. 17th 218 W. 18th San Francisco New York New York New York New York New York 333 Market St. 95 Columbus 149 Madison 799 Broadway 101 Franklin St. Terminal Warehouse San Francisco Jersey City,
Slide 5: Leading Gateway Submarkets
LEADING GATEWAY SUBMARKETS NEW YORK SAN FRANCISCO WASHINGTON, D.C. Terminal Warehouse 201 California 101 Franklin 2.4M total SF 2.2M total SF 1.5M total SF 1 98% leased 97% leased 95% leased Data for properties owned in unconsolidated joint ventures presented at 100%. 1New York metrics exclude 799 B
Slide 6: Redeveloped Portfolio
REDEVELOPED PORTFOLIO Modest capital needs going forward Portfolio has recently received substantial renovations Properties now positioned among best-in-class for competitive sets 6
Slide 7: Attractive Dividend Yield
ATTRACTIVE DIVIDEND YIELD DIVIDEND YIELD vs. GATEWAY OFFICE PEERS 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% KRC DEI HPP BXP PGRE ESRT CXP VNO SLG As of 5.29.20 7
Slide 8: Limited Near-Term Rollover
LIMITED NEAR-TERM ROLLOVER LEASE EXPIRATIONS BY YEAR (% OF ALR) 35% 31% 30% 25% 6.4 years Average remaining lease term 20% 16% 15% 12% 11% 10% 9% 8% 6% 5% 4% 2% 2% 0% 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029+ Note: Amounts may not sum to 100% due to rounding. 8
Slide 9: Strong Rent Collections
STRONG RENT COLLECTIONS April May (as of 5.27.20) Total Rents Total Rents 97% 95% collected collected Office Rents Office Rents 99% 97% collected collected 9
Slide 10: Strong & Flexible Balance Sheet
STRONG & FLEXIBLE BALANCE SHEET INVESTMENT DEBT MATURITIES GRADE RATINGS Baa2 BBB 700 2.94% Mortgage Debt - JV Bonds 600 Term Loans $316 million Line of Credit Cash1 500 $5014 15% / 85% 400 Secured Unsecured 4.15% 3.65% 2.55% 35% 300 Net Debt to 200 2 3.07% Real-Estate Assets $350 $350 Termi
Slide 11: Sector-Leading Same-Store NOI Growth
SECTOR-LEADING SAME-STORE NOI GROWTH •14% • Strategic locations 2018 same-store 1 and renovations • 2.6 million SF NOI growth leased in our core • Best-in-class service markets 2017-2020 •8% and amenities 2019 same-store • 36% average NOI1 growth • Creative rent roll cash leasing management spreads
Slide 12: Enhancing the Platform: Acquisition of Normandy Real Estate Partners
ENHANCING THE PLATFORM ACQUISITION OF NORMANDY REAL ESTATE PARTNERS CONSTRUCTION • January 2020 acquisition included: LEASING & ASSET DEVELOPMENT - Operating platform MANAGEMENT - ~$3.7 million equity stake in PROPERTY FUND MANAGEMENT Normandy’s active funds, full GP MANAGEMENT position ACQUISITIONS
Slide 13: A Proven Approach
A PROVEN APPROACH • Modernized buildings with architectural distinction • Strategic locations • Efficient floorplates • Attractive amenities • Exceptional service to tenants • Targeted capital investments 13
Slide 14: COVID-19 Response
COVID-19 RESPONSE Providing for Tenant & Team Safety Compliance with CDC and local guidelines Enhanced cleaning/disinfection protocols Property graphics to encourage social distancing and PPE use Modified HVAC maintenance and operating procedures Changes to visitor and delivery access cont
Slide 15: Commitment to Corporate Responsibility
COMMITMENT TO CORPORATE RESPONSIBILITY RESPONSIBLE BUILDING MANAGEMENT 75% 82% of portfolio of portfolio certified* LEED certified TRANSPARENT AND INVESTOR-CENTERED GOVERNANCE Board composed of supermajority of independent directors Annual elections for all directors Executive pay aligned with
Slide 16: Case Studies
CASE STUDIES 16
Slide 17: Park Avenue South
APPENDIX: Case Studies 315 PARK AVENUE SOUTH 332,000 sf NEW YORK Created a premier Midtown South office destination that commands premium rents • Acquired in 2015, with 17 of 20 floors vacant or rolling within two years at below market rents • Initiated a program of renovations and amenities to repo
Slide 18: M Street
80 M STREET 286,000 sf WASHINGTON, D.C. Increased NOI and achieved 94% leased through high-impact renovations • Former Class-B property leased to government contractors, with short-term leases and rates in low $40s • Launched building repositioning with transformative $3M lobby renovation ahead of m
Slide 19: Main Street
221 MAIN STREET 380,000 sf SAN FRANCISCO Raised rents by 97% through targeted improvements and creative rent roll management • Acquired in 2014, with rents well below market, material vacancy, and over 30% roll within three years • Invested ~$7M in strategic renovations to appeal to fin-tech tenants
Slide 20: 799 Broadway
799 BROADWAY Union Square and Greenwich Village NEW YORK Ground-up development of 12-story office building • Will contain 182,000 SF of boutique office space • Floor plates from 3,600 – 22,000 SF • 15’ ceilings, with floor-to-ceiling glass • Multiple private terraces and high-end amenities • Expecte
Slide 21: Franklin Street
101 FRANKLIN STREET (F/K/A 250 CHURCH STREET) TriBeCa NEW YORK Complete re-development of 16-story office building • Will contain 235,000 SF of boutique office space Preliminary renovation renderings • Floor plates from 8,300 – 16,600 SF • Walkable, amenity-rich neighborhood • Limited supply of high
Slide 22: Terminal Warehouse
Renovation renderings TERMINAL WAREHOUSE West Chelsea NEW YORK Creating a signature boutique office, retail and events destination • 1.1MM SF of creative office and 75,000 SF of retail • 7 to 13 stories, with roof decks and cascading terraces • Overlooks Highlight Park and Hudson Yards complex • Tar
Slide 23: Appendix: For More Information
APPENDIX FOR MORE INFORMATION Columbia Property Trust INVESTOR RELATIONS 404.465.2227 www.columbia.reit ir@columbia.reit 23
Slide 24: Components of Net Asset Value
COMPONENTS OF NET ASSET VALUE In-Place (in thousands) Q1 2020 Annualized Cash Net Operating Income1 $218,000 Construction in Progress – 799 Broadway, 101 Franklin, Terminal & 80 M (cost basis) 423,000 Normandy Acquisition2 100,000 Debt @ 3.31.20 (1,932,000) Working Capital (Net) @ 3.31.20 225,000 Pl
Slide 25: Embedded Growth from Signed Leases
EMBEDDED GROWTH FROM SIGNED LEASES1 CURRENTLY CASH RENT SF IN NOT YET COMMENCEMENT TENANT PROPERTY MARKET (000s) ABATEMENT COMMENCED YEAR WeWork 149 Madison Avenue NY 115 ✔ 2020 Triage Consulting 221 Main Street SF 462 ✔ 2020 DocuSign 221 Main Street SF 403 ✔ 2020 Company 3 218 West 18th Street NY 3
Slide 26: Dramatic Rent Roll-Ups Driving Growth
DRAMATIC RENT ROLL-UPS DRIVING GROWTH NET CASH LEASING SPREADS1 OVER PRIOR LEASES 60% 52% 50% 40% 36% 31% 30% 20% 20% 19% 10% 9% 0% 2015 2016 2017 2018 2019 2020 YTD 1 Net rent of new signed leases over net rent of prior lease in the same space on existing properties. 26
Slide 27: Unconsolidated Joint Ventures
UNCONSOLIDATED JOINT VENTURES • Increase scale in top markets through a University Circle capital efficient structure 799 Broadway • Current gross asset value of nearly $4B 114 Fifth Ave Market Square Joint Venture Ownership Interest Partner Property CXP Partners 55% 45% Allianz Real Estate Universi
Slide 28: Leadership Team
LEADERSHIP TEAM Nelson Mills Jim Fleming Jeff Gronning Gavin Evans Kevin Hoover President and CEO Executive VP and CFO Executive VP and CIO Executive VP – Executive VP – Portfolio Acquisitions Management David Cheikin David Dowdney Travis Feehan Wendy Gill Patrick Keeley Sr. VP – Asset Sr. VP – West
Slide 29: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation 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 identifi
Slide 30: Reconciliations: Non-GAAP to Comparable GAAP Measures
RECONCILIATIONS: NON-GAAP TO COMPARABLE GAAP MEASURES Three Months (in thousands) Ended 3/31/20 Annualized Net Cash Provided by Operating Activities $ 16,147 $ 64,588 Straight line rental income 3,394 13,576 Depreciation of real estate assets (18,330) (73,320) Amortization of lease-related costs (5,
Slide 31: Reconciliations: Non-GAAP to Comparable GAAP Measures
RECONCILIATIONS: NON-GAAP TO COMPARABLE GAAP MEASURES Three Months (in thousands) Ended 3/31/20 Annualized Adjusted EBITDAre $ 52,152 $ 208,608 Management fee revenues (8,240) (32,960) Management fee revenues – unconsolidated (342) (1,368) General and administrative – corporate 9,424 37,696 Non-cash
Slide 32: Reconciliations: Non-GAAP to Comparable GAAP Measures
RECONCILIATIONS: NON-GAAP TO COMPARABLE GAAP MEASURES Twelve Months Ended 12/31/2018 12/31/2017 Net Income $ 9,491 $ 176,041 Interest expense (net) 56,477 58,187 Interest income from development authority bonds (6,871) (7,200) Income tax expense 37 (213) Depreciation 81,795 80,394 Amortization 32,55
Slide 33: Reconciliations: Non-GAAP to Comparable GAAP Measures
RECONCILIATIONS: NON-GAAP TO COMPARABLE GAAP MEASURES Twelve Months Ended 12/31/2019 12/31/2018 Net income (loss) attributable to CXP stockholders $ 9,197 $ 9,491 Interest expense (net) 42,997 56,477 Interest income from development authority bonds - (6,871) Income tax expense 21 37 Depreciation 78,
Slide 34: Reconciliations: Non-GAAP to Comparable GAAP Measures
RECONCILIATIONS: NON-GAAP TO COMPARABLE GAAP MEASURES As of Period End (in thousands) 3/31/20 Debt - Consolidated $ 1,651,000 Debt – Columbia's share in unconsolidated joint ventures 280,549 Cash – consolidated (292,814) Cash – Columbia's share in unconsolidated joint ventures (23,526) Net Debt $ 1,
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