Columbia Property Trust — Investor Presentation (August 2020)
34 slides from Columbia Property Trust's investor presentation, Aug 31, 2020
Slide 1: Columbia Property Trust Investor Presentation 9.2020
COLUMBIACOLUMBIA PROPERTYPROPERTY TRUSTTRUST INVESTOR PRESENTATION 9.2020 1
Slide 2: Contents
CONTENTS Company Overview Page 3 Case Studies Page 21 Appendix Page 25 2
Slide 3: Why Invest?
WHY INVEST? Exceptional gateway portfolio at discounted valuation Modernized, boutique office properties in strategic submarkets Durable cash flows 97% leased with strong rent roll and limited near-term expirations Investment grade balance sheet Strong liquidity and flexibility on future capit
Slide 4: What Sets Us Apart?
WHAT SETS US APART? Our Portfolio Our Platform • Strategic locations CONSTRUCTION LEASING & • Modernized buildings with ASSET health safety features MANAGEMENT DEVELOPMENT • Attractive outdoor space and PROPERTY MANAGEMENT FUND amenities MANAGEMENT • Exceptional service to tenants ACQUISITIONS & DIS
Slide 5: 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 6: Leading Gateway Submarkets
LEADING GATEWAY SUBMARKETS NEW YORK SAN FRANCISCO WASHINGTON, D.C. 229 W. 43rd Terminal Warehouse 149 Madison 218 W. 18th 315 Park Ave. S 249 W. 17th 114 Fifth 201 California 799 Broadway JERSEY CITY 95 Columbus 101 Franklin 2.2M total SF 2.2M total SF 1.5M total SF 1 98% leased 96% leased 95% lease
Slide 7: Redeveloped Portfolio
REDEVELOPED PORTFOLIO Portfolio has recently received substantial renovations Properties now positioned among best-in-class for competitive sets 7
Slide 8: Attractive Dividend Yield vs. Gateway Office Peers
ATTRACTIVE DIVIDEND YIELD DIVIDEND YIELD vs. GATEWAY OFFICE PEERS 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% ESRT KRC DEI HPP BXP PGRE VNO CXP SLG As of 8.28.20 8
Slide 9: Limited Near-Term Rollover
LIMITED NEAR-TERM ROLLOVER LEASE EXPIRATIONS BY YEAR (% OF ALR) 35% 32% 30% 25% 6.3 years Average remaining lease term 20% 15% 15% 12% 11% 10% 8% 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. 9
Slide 10: Near-Term Lease Rollover and Deliveries
NEAR-TERM LEASE ROLLOVER AND DELIVERIES 1 Building Leased 2020-21 Roll PROPERTY or Deliveries HIGHLIGHTS SF % CXP share / Total • Higher view floors available next summer 95 COLUMBUS • Property sits at intersection of Midtown & 630,000 100% 178,000 Jersey City Downtown PATH trains in vibrant Grove S
Slide 11: Strong Rent Collections
STRONG RENT COLLECTIONS 2Q20 July-August (as of 8.21.20) Total Rents Total Rents 98% 97% collected collected Office Rents Office Rents 99% 98% collected collected 11
Slide 12: Strong & Flexible Balance Sheet
STRONG & FLEXIBLE BALANCE SHEET INVESTMENT DEBT MATURITIES GRADE RATINGS Baa2 BBB 700 2.09% Mortgage Debt - JV Bonds 600 Term Loans $305 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 5.45%
Slide 13: 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 14: Components of Net Asset Value
COMPONENTS OF NET ASSET VALUE In-Place (in thousands) Q2 2020 Annualized Cash Net Operating Income1 $211,000 Construction in Progress – 149 Madison, 799 Broadway, 101 Franklin, Terminal & 80 M (cost basis) 559,000 Normandy Acquisition2 100,000 Debt @ 6.30.20 (1,937,000) Working Capital (Net) @ 6.30.
Slide 15: 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 Triage Consulting 221 Main Street SF 462 ✔ 2020 Twitch 315 Park Avenue South NY 35 ✔ 2020 Credit Suisse 650 California SF 31 ✔ 2020 Company 3 218 West 18th Street
Slide 16: Broadway Development
799 BROADWAY DEVELOPMENT 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 ameniti
Slide 17: M Street Expansion
80 M STREET EXPANSION Capitol Riverfront / Navy Yard WASHINGTON, D.C. 105,000 sf vertical expansion of well-leased building • 60% pre-leased • 16’ slab to slab floors • Multiple outdoor terraces including penthouse with expansive greenspace • Will feature environmentally-friendly mass timber constru
Slide 18: Additional Re-Development Opportunities
ADDITIONAL RE-DEVELOPMENT OPPORTUNITIES 149 Madison Terminal Warehouse 101 Franklin New York City New York City New York City Opportunity to fully modernize Opportunity for signature Opportunity for complete 12-story boutique-sized office boutique office, retail and events redevelopment of 16-story
Slide 19: 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 20: Commitment to Corporate Responsibility
COMMITMENT TO CORPORATE RESPONSIBILITY Responsible Building Ethical & Socially- Transparent and Management Conscious Business Investor-Centered Practices Governance Strong commitment to Board composed of 75% Diversity, Equity, and supermajority of of portfolio Inclusion independent directors cer
Slide 21: Case Studies
CASE STUDIES 21
Slide 22: 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 23: 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 24: 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 25: Appendix: For More Information
APPENDIX FOR MORE INFORMATION Columbia Property Trust INVESTOR RELATIONS 404.465.2227 www.columbia.reit [email protected] 25
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% 10% 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: Executive Team
EXECUTIVE TEAM Nelson Mills Jim Fleming Jeff Gronning Gavin Evans Kevin Hoover President and CEO Executive VP and Executive VP and Executive VP – Executive VP – Portfolio CFO CIO Acquisitions Management David Cheikin David Dowdney Travis Feehan Wendy Gill Patrick Keeley Stephen Smith Amy Tabb Sr. VP
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 6/30/20 Annualized Net Cash Provided by Operating Activities $ 28,228 $ 112,912 Straight line rental income 2,304 9,216 Depreciation of real estate assets (17,379) (69,516) Amortization of lease-related costs (6,
Slide 31: Reconciliations: Non-GAAP to Comparable GAAP Measures
RECONCILIATIONS: NON-GAAP TO COMPARABLE GAAP MEASURES Three Months (in thousands) Ended 6/30/20 Annualized Adjusted EBITDAre $ 55,401 $ 221,604 Management fee revenues (10,447) (41,788) Management fee revenues – unconsolidated (514) (2,056) General and administrative – corporate 7,964 31,856 Non-cas
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) 6/30/20 Debt - Consolidated $ 1,651,000 Debt – Columbia's share in unconsolidated joint ventures 285,646 Cash – consolidated (277,677) Cash – Columbia's share in unconsolidated joint ventures (27,158) Net Debt $ 1,
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