Columbia Property Trust — Investor Presentation (February 2020)
29 slides from Columbia Property Trust's investor presentation, Feb 26, 2020
Slide 1: Columbia Property Trust Investor Presentation 2.2020
COLUMBIA PROPERTY TRUST INVESTOR PRESENTATION 2.2020 1
Slide 2: Contents
CONTENTS Company Overview Page 3 Case Studies Page 16 Appendix Page 23 2
Slide 3: Why Invest?
WHY INVEST? Gateway Office Growth Value Creation plus Portfolio Stability • Focused in New York • Substantial expected • Local expertise (Midtown South), San same-store NOI Francisco, D.C., and growth • Track record of Boston redevelopment and • 96% leased with asset repositioning • Strategic CBD li
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. 116 Huntington Ave. San Francisco Jersey City,
Slide 5: Leading Gateway Submarkets
LEADING GATEWAY SUBMARKETS NEW YORK SAN FRANCISCO WASHINGTON, D.C. 201 California 101 Franklin 2.4M total SF 2.0M total SF 1.5M total SF 1 98% leased 97% leased 94% leased2 Data for properties owned in unconsolidated joint ventures presented at 100%. 1New York metrics exclude 799 Broadway and 101 Fr
Slide 6: A Proven Approach
A PROVEN APPROACH • Modernized buildings with architectural distinction • Strategic locations • Efficient floorplates • Attractive amenities • Exceptional service to tenants • Targeted capital investments 6
Slide 7: Sector-Leading Same-Store NOI Growth
SECTOR-LEADING SAME-STORE NOI GROWTH • Strategic locations and renovations • 2.5 million SF •8% leased in our core 2019 same-store • Best-in-class service markets 2017-2020 NOI growth1 and amenities • 37% average •9% - 11% • Creative rent roll cash leasing 2020 same-store management spreads NOI guid
Slide 8: Illustrative Net Asset Value Analysis
ILLUSTRATIVE NET ASSET VALUE ANALYSIS Net Operating Cap Rate Cap Rate (in thousands, except for per-share data) Income (Cash) 5.00% 4.75% Q4 2019 Annualized – excluding Pittsburgh, Pasadena, and 201 California1 $202,000 $4,040,000 $4,253,000 Anticipated Dispositions – Cranberry Woods & Pasadena Corp
Slide 9: 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 DocuSign 221 Main Street SF 542 ✔ ✔ 2020 Triage Consulting 221 Main Street SF 463 ✔ 2020 Company 3 218 West 18th Street NY
Slide 10: Attractive Dividend Yield
ATTRACTIVE DIVIDEND YIELD DIVIDEND YIELD vs. GATEWAY OFFICE PEERS 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% KRC DEI BXP HPP PGRE ESRT CXP SLG VNO As of 2.24.2020 10
Slide 11: Limited Near-Term Rollover
LIMITED NEAR-TERM ROLLOVER LEASE EXPIRATIONS BY YEAR (% OF ALR)1 35% 30% 29% 25% 6.5 years Average remaining lease term1 20% 15% 15% 12% 10% 10% 9% 8% 7% 5% 5% 3% 2% 0% 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029+ Note: Amounts may not sum to 100% due to rounding. 11 1 Pro Forma for the sale o
Slide 12: Strong & Flexible Balance Sheet
STRONG & FLEXIBLE BALANCE SHEET INVESTMENT DEBT MATURITES GRADE RATINGS Mortgage Debt - JV 400 Bonds Baa2 BBB Term Loans Stable / Stable Line of Credit 4.15% 3.65% Ratings 3.77% 2.55% 300 15% / 85% Secured Unsecured $1574 200 33% 3.07% $350 $350 $300 Net Debt to 1 Real-Estate Assets 799 $166
Slide 13: 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 13
Slide 14: 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 15: Enhancing the Platform: Acquisition of Normandy Real Estate Partners
ENHANCING THE PLATFORM ACQUISITION OF NORMANDY REAL ESTATE PARTNERS In January 2020, Columbia acquired CONSTRUCTION LEASING & + Normandy Real Estate Management, an ASSET + established Northeast-based commercial MANAGEMENT DEVELOPMENT real estate operator and fund sponsor. + PROPERTY + MANAGEMENT FUN
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: 101 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 • Floor plates from 8,300 – 16,600 SF • Walkable, amenity-rich neighborhood • Limited supply of high-end office space in submarket • E
Slide 22: Terminal Warehouse (Pending)
TERMINAL WAREHOUSE (PENDING) 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 • Targeting LEED
Slide 23: Appendix: For More Information
APPENDIX FOR MORE INFORMATION Columbia Property Trust INVESTOR RELATIONS 404.465.2227 www.columbia.reit [email protected] 23
Slide 24: 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% 0% 2015 2016 2017 2018 2019 1 Net rent of new signed leases over net rent of prior lease in the same space on existing properties. 24
Slide 25: Unconsolidated Joint Ventures
UNCONSOLIDATED JOINT VENTURES • Increase scale in top markets through a University Circle 799 Broadway capital efficient structure • Current gross asset value of $2.7B 114 Fifth Ave Market Square Joint Venture Ownership Interest Partner Property CXP Partners 55% 45% Allianz Real Estate University Ci
Slide 26: Leadership Team
LEADERSHIP TEAM Nelson Mills President and CEO Jeff Gronning Jim Fleming EVP, CIO EVP, CFO Gavin Evans Kevin Hoover Dave Cheikin Dave Dowdney Wendy Gill Amy Tabb Paul Teti EVP, Acquisitions EVP, Portfolio SVP, Asset Management & SVP, West Coast SVP, Chief SVP, Business SVP, Asset Management Manageme
Slide 27: Forward-Looking Statements
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, in
Slide 28: Reconciliations: Non-GAAP to Comparable GAAP Measures
RECONCILIATIONS: NON-GAAP TO COMPARABLE GAAP MEASURES Three Months (in thousands) Ended 12/31/19 Annualized Net Cash Provided by Operating Activities $ 33,379 $ 133,516 Straight line rental income 2,843 11,372 Depreciation of real estate assets (18,780) (75,120) Amortization of lease-related costs (
Slide 29: Reconciliations: Non-GAAP to Comparable GAAP Measures
RECONCILIATIONS: NON-GAAP TO COMPARABLE GAAP MEASURES As of Period End (in thousands) 12/31/19 Debt - Consolidated $ 1,484,000 Debt – Columbia's share in unconsolidated joint ventures 222,010 Cash – consolidated (12,303) Cash – Columbia's share in unconsolidated joint ventures (23,755) Net Debt $ 1,
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