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FOCUSED
COMPANY OVERVIEW
$5.3 billion 13.7 million 48% 78% / 68% 93.2% 35.6%
Unless otherwise noted, all data contained herein is as of December 31, 2015, and includes Columbia’s 51% pro rata interest in Market Square.1 Represents 100% of Market Square.2 Based on annualized lease revenue.
GROSS REAL ESTATE ASSETS
OFFICE RENTABLE1 SQUARE FEET
REVENUES FROM HIGH-BARRIER MARKETS2
MULTI-TENANT /CBD2
LEASED
LEVERAGE
229 W. 43rd StreetAcquired 8/4/2015 NEW YORK CITY
1 Does not include the Marriott Hotel at Key Center. 2
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FOCUSED ON HIGH-BARRIER MARKETSIn 2015, we expanded in New York’s Midtown and Boston’s Back Bay, continuing our strategic focus on high-barrier-to-entry markets. Today, our largest portfolio concentrations are in San Francisco, New York City and Washington, D.C.—markets that we believe will continue to outperform in the years ahead and will provide us with growth in funds from operations over time.
PORTFOLIO THEN
(12/31/2011)
PORTFOLIO TODAY
(12/31/2015)
Properties1
Markets
% CBD
% High-Barrier
67
31
38%
25%
27
15
68%
48%
+7
+1
DISPOSITIONScompleted
ACQUISITIONScompleted
PORTFOLIO TRANSFORMATION
$2.1 billionin proceeds2
$2.0 billioninvested
31 +1
25%
-47
-17
As we enter 2016, Columbia Property Trust has one of the best portfolios in the office REIT sector. complete a remarkable transformation since the end of 2011 that has taken discipline, skill and vision. Many of you have invested with us during this transition, and we are grateful for your continued confidence in our team and platform.
We have a portfolio of investments today that aligns
Concentration in high-barrier markets, Primarily central business district and urban infill submarket locations,
Predominantly multi-tenant properties, and A blend of stable-cash-flow core assets and assets with opportunities for value creation.
POSITIONED IN THE PATH OF GROWTH
and why that matters for future growth in net asset value and increasing cash flows.
Dispositions
dispositions, substantially reducing our exposure to non-core suburban and single tenant assets. We also
D.C., to Blackstone Property Partners for total
AcquisitionsWe used these proceeds to purchase three assets in our target markets, assets that we expect to grow significantly in value and cash flow in the relative near
116 Huntington Avenue in Boston’s Back Bay submarket, and
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2 TO OUR STOCKHOLDERS
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WE HAVE A PORTFOLIO OF INVESTMENTS TODAY THAT ALIGNS WITH THE OBJECTIVES WE ESTABLISHED FOUR YEARS AGO
315 Park Avenue South
Marketing Center, 24th Floor222 E. 41st Street, New York City
Renovated LobbyMarket Square, Washington, D.C.
Marketing Center, 2nd Floor650 California Street, San Francisco
ADDING VALUE THROUGH CAPITAL IMPROVEMENTS
222 E. 41st Street NEW YORK CITY
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LeasingBeyond improving the portfolio through the transactions above, we’ve made significant strides in creating value through leasing. We completed 1.26 million square feet of leasing in 2015, most
in Denver, and Equinox in New York City, addressing some of our larger near-term expirations.
We also completed substantial capital improvements st
tenant demand.
Capital MarketsCompleting this significant portfolio transition in such a short time was possible because of the strength of our balance sheet, which we continued to improve in 2015. Most significantly, we reduced
reducing overall borrowing costs and extending maturities.
These and other accomplishments led to a credit
program, which has resulted in our acquisition of
LeadershipFinally, we sought out several highly-experienced industry veterans to complement our senior leadership team and enhance the Board. These
Mike Robbdivision for nearly three decades;
Dave Henryvice chairman and chief executive officer of Kimco Realty Corporation; and
Carmen Bowserveteran who most recently served as managing vice president at Capital One.
Additionally, we recently welcomed Adam Popper as
our investment activity and asset management efforts in New York City, Washington, D.C. and Boston.
WE’VE MADE SIGNIFICANT STRIDES IN CREATING VALUE THROUGH LEASING
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CONTINUED FOCUS ON EXECUTIONWe’ve assembled an attractive portfolio that is geared for long-term growth and have put a strong team in place to manage it. We continue to focus on execution and have high expectations for what we can achieve in 2016. This includes completing several key dispositions, capitalizing on milestone leasing opportunities, and continuing to improve our balance sheet. We’ll also seek to identify and execute new investments in our key markets that meet our
We are in the midst of a volatile and uncertain market environment and will, therefore, remain conservative in our underwriting for new acquisitions. We will be very selective and patient as we diligently pursue investments within our defined strategy and markets. We’ll also continue to consider other capital allocation alternatives, such as share repurchases and debt repayments.
HIGH-BARRIER MARKET FOCUSWe are convinced that our strategy to concentrate in high-barrier markets is paying off. Recently there has been increased speculation about volatility in certain real estate markets, along with questions about where each might be in the cycle—most
Cycles come and go, but we have chosen to allocate our investments to these and other high-barrier markets because we believe they will continue to outperform suburban and secondary markets over time, through both thriving and challenging economic periods.
650 California Street SAN FRANCISCO
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OUR STRATEGY TO CONCENTRATE IN HIGH-BARRIER MARKETS IS PAYING OFF
leased at year end and is characterized by a healthy blend of tenants and locations. Our investments there are anchored by a long-term Wells Fargo lease
opportunity to lease over 100,000 square feet at 650
well below market.
market in the country, we have our largest leasing st
will be vacated by Jones Day at their expiration in
continue leasing up near-term roll at substantial
rd
and long-term-leased property that we acquired in August 2015 to balance these value-add assets.
Washington, D.C., so we took advantage of an opportunity to reduce our exposure there and unlock
Blackstone Property Partners. Nonetheless, with vacancy being steadily absorbed, we are bullish on this market long term and will continue to look for other opportunities there. Moreover, we are
spurred by our substantial renovations and accelerated marketing efforts.
track record of successful execution. Our strategy is working, and the challenge of creating our core portfolio and strong balance sheet is largely behind us. Yet we are, and will always remain, focused on what more we can do to improve our company and its financial performance, and to create value for our shareholders.
E. NELSON MILLSPresident, Chief Executive Officer, and Director
March 2, 2016
116 Huntington Avenue Acquired 1/8/2015 BOSTON
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WE WILL CONTINUE TO BUILD UPON OUR TRACK RECORD OF SUCCESSFUL EXECUTION
315 Park Avenue SouthAcquired 1/7/2015NEW YORK CITY
FORM 10-K
[This PDF contains the Annual Report wrapper only; the Form 10-K the Columbia Property Trust, Inc. filed with the SEC for the year ended December 31, 2015, is available at www.sec.gov.]
E. Nelson MillsPresident and Chief
John L. DixonChairman of the Board;Former President and Director,
Carmen M. BowserFormer Managing Vice President, Capital One Bank, New York
Charles R. Brown Chairman, CRB Realty Associates
Richard W. CarpenterChairman of the Board, MidCountry Financial Corp.
David B. Henry
Kimco Realty Corporation
Murray J. McCabeManaging Partner,
Michael S. RobbFormer Executive Vice President, Real Estate Division
George W. SandsFormer Partner,
Thomas G. Wattles Executive Chairman,
BOARD OF DIRECTORS
CORPORATE AND SHAREHOLDER INFORMATIONCorporate Headquarters
www.columbiapropertytrust.com
Independent Accountants
Corporate Counsel
Annual MeetingThe Annual Meeting of
at The Westin Atlanta Perimeter
on May 2, 2016.
Shareholder Services & Transfer Agent/Registrar
6201 15th Avenue
Shares Listed
Investor Relations
Relations at the Company’s corporate headquarters or by email to [email protected].
Internet Access to SEC FilingsA copy of the Company’s Annual Report on Form 10-K for the year
of this annual report. All reports
including the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports
www.columbiapropertytrust.com.
SENIOR MANAGEMENTE. Nelson MillsPresident and Chief
James A. FlemingExecutive Vice President and
David S. Dowdney
Western Region
Wendy W. Gill
Corporate Operations and
Kevin A. Hoover
Portfolio Management
Adam I. Popper
Eastern Region
COLUMBIAPROPERTYTRUST.COM
005-CXPRPRT1601