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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q
(Mark One)
☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
for the quarterly period ended March 31, 2020
or
☐
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
for the transition period from ______ to ______
Commission file number 001-36113
COLUMBIA PROPERTY TRUST, INC.
(Exact name of registrant as specified in its charter)
  __________________________________
Maryland 20-0068852
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number)

315 Park Avenue South, New York, New York 10010
(Address of principal executive offices) (Zip Code)

(212) 687-0800
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbols Name of each exchange on which registered
Common Stock CXP NYSE
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  ☒    No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  ☒  No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer", "accelerated filer", "smaller reporting company", and "emerging growth company" in Rule 12b-2 of the Exchange Act (check one).
Large accelerated filer ☒ Accelerated filer ☐
Non-accelerated filer
☐ (Do not check if a smaller reporting company)
Smaller reporting company ☐
Emerging Growth Company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  ☐    No  ☒

Number of shares outstanding of the registrant's
only class of common stock, as of April 24, 2020: 114,413,205 shares


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FORM 10-Q
COLUMBIA PROPERTY TRUST, INC.
TABLE OF CONTENTS
 
Page No.
Item 1.
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Item 2.
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Item 3.
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Item 4.
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Item 1.
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Item 1A.
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Item 2.
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Item 3.
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Item 4.
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Item 5.
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Item 6.
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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained in this quarterly report on Form 10-Q of Columbia Property Trust, Inc. ("Columbia Property Trust," "we," "our," or "us"), other than historical facts may constitute "forward-looking statements” within the meaning of the Private Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934). Columbia Property Trust intends for all such forward-looking statements presented in this quarterly report on Form 10-Q ("Form 10-Q"), or that management may make orally or in writing from time to time, to be covered by the applicable safe harbor provisions for forward-looking statements contained in those acts.
Such statements in this current Form 10-Q include, among other things, information about possible or assumed future results of the business and our financial condition, liquidity, results of operations, plans, strategies, prospects, and objectives. 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. As forward-looking statements, these statements 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. These risks, uncertainties, and other factors include, without limitation:
•risks affecting the real estate industry and the office sector, in particular (such as the inability to enter into new leases, dependence on tenants' financial condition, and competition from other owners of real estate);
•risks relating to lease terminations, lease defaults, or changes in the financial condition of our tenants, particularly by a significant tenant;
•risks relating to our ability to maintain and increase property occupancy rates and rental rates;
•adverse economic or real estate market developments in our target markets;
•the risks of pandemics or other public health emergencies, including the continued spread and impact of, and the governmental and third-party response to, the recent COVID-19 outbreak;
•the impact of social distancing, shelter-in-place, border closings, travel restrictions, remote work requirements and similar governmental and private measures taken to combat the spread of COVID-19;
•risks relating to the use of debt to fund acquisitions;
•availability and terms of financing;
•ability to refinance indebtedness as it comes due;
•sensitivity of our operations and financing arrangements to fluctuations in interest rates;
•reductions in asset valuations and related impairment charges;
•risks relating to construction, development, and redevelopment activities;
•risks associated with joint ventures, including disagreements with, or misconduct by, joint venture partners;
•risks relating to repositioning our portfolio;
•risks relating to reduced demand for, or over supply of, office space in our markets;
•risks relating to acquisition and disposition activities;
•ability to successfully integrate our operations and employees in connection with the acquisition of Normandy Real Estate Management, LLC ("Normandy");
•ability to realize anticipated benefits and synergies of the acquisition of Normandy;
•amount of the costs, fees, expenses, and charges related to the acquisition of Normandy;
•risks associated with our ability to continue to qualify as a real estate investment trust ("REIT");
•risks associated with possible cybersecurity attacks against us or any of our tenants;
•potential liability for uninsured losses and environmental contamination;
•potential adverse impact of market interest rates on the market price for our securities; and
•risks associated with our dependence on key personnel whose continued service is not guaranteed.
For further discussion of these and additional risks and uncertainties that may cause actual results to differ from expectation, see Item 1A, Risk Factors, on our Form 10-K for the year ended December 31, 2019 and Part II, Item 1A – Risk Factors, in this Quarterly Report. Although we believe that the expectations reflected in such forward-looking
2
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statements are based on reasonable assumptions, we can give no assurances that our expectations will be achieved. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date this Form 10-Q is filed with the U.S. Securities and Exchange Commission ("SEC"). We do not intend to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
3
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PART I.FINANCIAL INFORMATION

ITEM 1.CONSOLIDATED FINANCIAL STATEMENTS
The information furnished in the accompanying consolidated balance sheets and related consolidated statements of operations, comprehensive income, equity, and cash flows, reflects all normal and recurring adjustments that are, in management's opinion, necessary for a fair and consistent presentation of the aforementioned financial statements. The accompanying consolidated financial statements should be read in conjunction with the condensed notes to Columbia Property Trust's financial statements and Management's Discussion and Analysis of Financial Condition and Results of Operations included in this Quarterly Report on Form 10-Q, and with audited consolidated financial statements and the related notes for the year ended December 31, 2019. Columbia Property Trust's results of operations for the three months ended March 31, 2020 are not necessarily indicative of the operating results expected for the full year.

4
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COLUMBIA PROPERTY TRUST, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per-share amounts)
(Unaudited)
March 31, 2020 December 31, 2019
Assets:
Real estate assets, at cost:
Land $ 870,352    $ 870,352   
Buildings and improvements, less accumulated depreciation of $298,089 and $281,248, as of
March 31, 2020 and December 31, 2019, respectively
1,709,699    1,719,207   
Intangible lease assets, less accumulated amortization of $60,794 and $58,659, as of
March 31, 2020 and December 31, 2019, respectively
57,282    61,025   
Construction in progress 65,592    53,621   
Real estate assets held for sale, less accumulated depreciation and amortization of $80,543 as of December 31, 2019
—    214,956   
Total real estate assets 2,702,925    2,919,161   
Operating lease assets 30,090    29,470   
Investments in unconsolidated joint ventures 1,087,694    1,054,460   
Cash and cash equivalents 292,814    12,303   
Tenant receivables 4,322    2,464   
Straight-line rent receivable 80,935    77,330   
Prepaid expenses and other assets 29,133    21,484   
Intangible lease origination costs, less accumulated amortization of $33,952 and $33,731, as of
March 31, 2020 and December 31, 2019, respectively
26,386    27,971   
Deferred lease costs, less accumulated amortization of $17,962 and $16,732, as of
March 31, 2020 and December 31, 2019, respectively
82,886    76,385   
Other assets held for sale, less accumulated amortization of $10,222 as of December 31, 2019
—    23,917   
Goodwill (Note 3) 63,806    —   
Total assets $ 4,400,991    $ 4,244,945   
Liabilities:
Line of credit and notes payable, net of unamortized deferred financing costs of $1,930 and $2,084, as of March 31, 2020 and December 31, 2019, respectively
$ 949,070    $ 781,916   
Bonds payable, net of discounts of $1,078 and $1,124 and unamortized deferred financing costs of $3,403 and $3,552, as of March 31, 2020 and December 31, 2019, respectively
695,519    695,324   
Operating lease liabilities 2,887    2,186   
Accounts payable, accrued expenses, and accrued capital expenditures 90,291    70,845   
Dividends payable —    24,209   
Deferred income 18,593    16,955   
Intangible lease liabilities, less accumulated amortization of $16,043 and $15,127, as of
March 31, 2020 and December 31, 2019, respectively
20,244    21,839   
Liabilities held for sale, less accumulated amortization of $— as of December 31, 2019
—    3,054   
Total liabilities 1,776,604    1,616,328   
Commitments and Contingencies (Note 7) —    —   
Equity:
Common stock, $0.01 par value, 225,000,000 shares authorized, 114,413,205 and 115,280,597 shares issued and outstanding, as of March 31, 2020 and December 31, 2019, respectively
1,144    1,153   
Additional paid-in capital 4,369,155    4,392,322   
Cumulative distributions in excess of earnings (1,787,119)   (1,769,234)  
Cumulative other comprehensive loss (20,509)   (1,101)  
Total stockholders' equity attributable to Columbia Property Trust 2,562,671    2,623,140   
Noncontrolling interest in Columbia Operating Partnership 56,465    —   
Noncontrolling interest in consolidated joint venture 5,251    5,477   
Total equity 2,624,387    2,628,617   
Total liabilities and equity $ 4,400,991    $ 4,244,945   
See accompanying notes

5

COLUMBIA PROPERTY TRUST, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per-share amounts)
(Unaudited)
  Three Months Ended
March 31,
  2020 2019
Revenues:
Lease revenues $ 68,007    $ 71,862   
Management fee revenues 8,240    1,869   
Other property income 7    1,702   
76,254    75,433   
Expenses:
Property operating costs 22,697    24,492   
Depreciation 18,330    20,404   
Amortization 6,721    7,461   
General and administrative – corporate 11,782    8,424   
Management fee expense 6,945    —   
General and administrative – joint venture —    809   
Acquisition costs (Note 3) 12,081    —   
78,556    61,590   
Other Income (Expense):
Interest expense (9,555)   (12,095)  
Interest and other income (expense) (158)   1   
Income tax benefit (expense) 2,243    (7)  
Income from unconsolidated joint ventures 2,656    1,771   
Gain on sale of real estate assets 13,344    —   
8,530    (10,330)  
Net income 6,228    3,513   
Less: net (income) loss attributable to noncontrolling interest in Columbia Operating Partnership (71)   —   
Less: net (income) loss attributable to noncontrolling interest in consolidated joint venture 133    —   
Net income attributable to common stockholders $ 6,290    $ 3,513   
Per-Share Information – Basic:
Net income $ 0.05    $ 0.03   
Weighted-average common shares outstanding – basic 114,471    116,462   
Per-Share Information – Diluted:
Net income $ 0.05    $ 0.03   
Weighted-average common shares outstanding – diluted 114,486    116,880   
See accompanying notes.
6

COLUMBIA PROPERTY TRUST, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands)
(Unaudited)
Three Months Ended
March 31,
  2020 2019
Net income $ 6,228    $ 3,513   
Market value adjustments to interest rate swaps (19,993)   (1,431)  
Comprehensive income (loss) (13,765)   2,082   
Less: market value adjustments to interest rate swaps 585    —   
Less: net (income) loss attributable to noncontrolling interest in Columbia Operating Partnership (71)   —   
Less: net (income) loss attributable to noncontrolling interest in consolidated joint venture 133    —   
Comprehensive income (loss) attributable to common stockholders $ (13,118)   $ 2,082   
See accompanying notes.


7

COLUMBIA PROPERTY TRUST, INC.
CONSOLIDATED STATEMENTS OF EQUITY
FOR THE THREE MONTHS ENDED MARCH 31, 2020 AND 2019 (UNAUDITED)
(in thousands, except per-share amounts)

Stockholders' Equity
Common Stock Additional
Paid-In
Capital 		Cumulative
Distributions
in Excess of
Earnings 		Cumulative
Other
Comprehensive
Loss 		Total
Equity 		Noncontrolling Interests
  Columbia Operating Partnership Consolidated Joint Venture Total Equity
  Shares Amount
Balance, December 31, 2019
115,280    $ 1,153    $ 4,392,322    $ (1,769,234)   $ (1,101)   $ 2,623,140    $ —    $ 5,477    $ 2,628,617   
Repurchases of common stock (1,194)   (12)   (23,264)   —    —    (23,276)   —    —    (23,276)  
Issuance of noncontrolling interest in
Columbia Operating Partnership 		—    —    —    —    —    —    55,306    —    55,306   
Common stock issued to employees and directors, and amortized (net of income tax withholdings) 327    3    97    —    —    100    2,358    —    2,458   
Distributions to common stockholders ($0.21 per share)
—    —    —    (24,175)   —    (24,175)   —    —    (24,175)  
Contributions from noncontrolling interest in consolidated joint venture —    —    —    —    —    —    —    16    16   
Distributions to consolidated joint venture partner and Operating Partnership Unit holders —    —    —    —    —    —    (685)   (109)   (794)  
Allocation of net income (loss) —    —    —    6,290    —    6,290    71    (133)   6,228   
Market value adjustment to interest rate swap —    —    —    —    (19,408)   (19,408)   (585)   —    (19,993)  
Balance, March 31, 2020
114,413    $ 1,144    $ 4,369,155    $ (1,787,119)   $ (20,509)   $ 2,562,671    $ 56,465    $ 5,251    $ 2,624,387   

Stockholders' Equity
  Common Stock Additional
Paid-In
Capital 		Cumulative
Distributions
in Excess of
Earnings 		Cumulative
Other
Comprehensive
Income (Loss) 		Total
Equity
  Shares Amount
Balance, December 31, 2018
116,698    $ 1,167    $ 4,421,587    $ (1,684,082)   $ 2,344    $ 2,741,016   
Common stock issued to employees and directors, and amortized (net of income tax withholdings) 182    2    (860)   —    —    (858)  
Distributions to common stockholders ($0.20 per share)
—    —    —    (23,376)   —    (23,376)  
Net income —    —    —    3,513    —    3,513   
Market value adjustment to interest rate swap —    —    —    —    (1,431)   (1,431)  
Balance, March 31, 2019
116,880    $ 1,169    $ 4,420,727    $ (1,703,945)   $ 913    $ 2,718,864   

See accompanying notes.
8

COLUMBIA PROPERTY TRUST, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
Three Months Ended
March 31,
  2020 2019
Cash Flows From Operating Activities:
Net income $ 6,228    $ 3,513   
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Straight-line rental income (3,394)   (4,631)  
Noncash operating lease expense 82    212   
Depreciation 18,330    20,404   
Amortization 5,330    6,351   
Noncash compensation expense 4,657    1,539   
Noncash interest expense 642    640   
Income from unconsolidated joint ventures (2,656)   (1,771)  
Distributions of earnings from unconsolidated joint ventures 6,996    6,161   
Gain on sale of real estate assets (13,344)   —   
Market value adjustment to investment in Real Estate Funds 160    —   
Changes in assets and liabilities, net of acquisitions and dispositions:
Increase in tenant receivables, net (1,702)   (294)  
Decrease (increase) in prepaid expenses and other assets (235)   3,563   
Decrease in accounts payable and accrued expenses (4,605)   (2,701)  
Increase (decrease) in deferred income (342)   2,093   
Net cash provided by operating activities 16,147    35,079   
Cash Flows From Investing Activities:
Net proceeds from the sale of real estate 250,822    —   
Normandy Acquisition (Note 3) (13,971)   —   
Prepaid transaction costs and earnest money —    (13,701)  
Capital improvement and development costs (23,583)   (19,014)  
Deferred lease costs paid (3,965)   (1,937)  
Investments in unconsolidated joint ventures (43,641)   (6,528)  
Investments in Real Estate Funds (253)   —   
Distributions from unconsolidated joint ventures 6,487    5,672   
Net cash provided by (used in) investing activities 171,896    (35,508)  
Cash Flows From Financing Activities:
Financing costs paid (5)   (21)  
Proceeds from lines of credit and notes payable 347,000    74,000   
Repayments of lines of credit and notes payable (180,000)   (23,000)  
Contributions from noncontrolling interest in consolidated joint venture 16    —   
Distributions paid to stockholders (48,384)   (46,716)  
Distributions paid to noncontrolling interest in Columbia Operating Partnership (685)   —   
Redemptions of common stock (25,474)   (2,401)  
Net cash provided by financing activities 92,468    1,862   
Net increase in cash and cash equivalents 280,511    1,433   
Cash and cash equivalents, beginning of period 12,303    17,118   
Cash and cash equivalents, end of period $ 292,814    $ 18,551   
See accompanying notes.
9

COLUMBIA PROPERTY TRUST, INC.
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2020
(unaudited)

1.Organization
Columbia Property Trust, Inc. ("Columbia Property Trust") (NYSE: CXP) is a Maryland corporation that operates as a real estate investment trust ("REIT") for federal income tax purposes, and owns and operates commercial real estate properties. Columbia Property Trust conducts business primarily through Columbia Property Trust Operating Partnership, L.P. ("Columbia OP"), a Delaware limited partnership in which Columbia Property Trust is the general partner and majority owner (97.2%). Columbia Property Trust acquires, develops, redevelops, owns, leases, and operates real properties directly, through wholly owned subsidiaries, or through joint ventures. Unless otherwise noted herein, references to Columbia Property Trust, the "Company," "we," "us," or "our" herein shall include Columbia Property Trust and all subsidiaries of Columbia Property Trust, direct and indirect.
As of March 31, 2020, Columbia Property Trust owned 15 operating properties and four properties under development or redevelopment, of which 11 were wholly owned and eight were owned through joint ventures, located primarily in New York, San Francisco, Washington, D.C., and Boston. As of March 31, 2020, these operating properties contained 6.3 million rentable square feet and were approximately 97.6% leased. Columbia Property Trust also provides asset and property management services for 8.0 million square feet of office space located primarily in New York, Washington, D.C., and Boston.

2. Summary of Significant Accounting Policies
Basis of Presentation
The consolidated financial statements of Columbia Property Trust have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"), including the instructions to Form 10-Q and Article 10 of Regulation S-X, and do not include all of the information and footnotes required by U.S. generally accepted accounting principles ("GAAP") for complete financial statements. In the opinion of management, the statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair and consistent presentation of the results for such periods. Results for these interim periods are not necessarily indicative of a full year's results. For additional information on Columbia Property Trust's unconsolidated joint ventures, which are accounted for using the equity method of accounting, see Note 4, Unconsolidated Joint Ventures. Columbia Property Trust's consolidated financial statements include the accounts of Columbia Property Trust, Columbia OP, and any variable-interest entity in which Columbia Property Trust or Columbia OP is deemed the primary beneficiary. With respect to entities that are not variable interest entities, Columbia Property Trust's consolidated financial statements also include the accounts of any entity in which Columbia Property Trust, Columbia OP, or their subsidiaries own a controlling financial interest and any limited partnership in which Columbia Property Trust, Columbia OP, or their subsidiaries own a controlling general partnership interest. All intercompany balances and transactions have been eliminated in consolidation. For further information, refer to the financial statements and footnotes included in Columbia Property Trust's Annual Report on Form 10-K for the year ended December 31, 2019 (the "2019 Form 10-K").
Fair Value Measurements
Columbia Property Trust estimates the fair value of its assets and liabilities (where currently required under GAAP) consistent with the provisions of Accounting Standard Codification 820, Fair Value Measurements ("ASC 820"). Under this standard, fair value is defined as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date, under current market conditions. While various techniques and assumptions can be used to estimate fair value depending on the nature of the asset or liability, the accounting standard for fair value measurements and disclosures provides the following fair value technique parameters and hierarchy, depending upon availability:
Level 1 – Assets or liabilities for which the identical term is traded on an active exchange, such as publicly traded instruments or futures contracts.
Level 2 – Assets or liabilities valued based on observable market data for similar instruments.
10
Level 3 – Assets or liabilities for which significant valuation assumptions are not readily observable in the market. Such assets or liabilities are valued based on the best available data, some of which may be internally developed. Significant assumptions may include risk premiums that a market participant would consider.
Real Estate Assets
Columbia Property Trust is required to make subjective assessments as to the useful lives of its depreciable assets. To determine the appropriate useful life of an asset, Columbia Property Trust considers the period of future benefit of the asset. These assessments have a direct impact on net income. The estimated useful lives of its assets by class are as follows:
Buildings    40 years
Building and site improvements   
5-25 years
Tenant improvements    Shorter of economic life or lease term
Intangible lease assets    Lease term
As further described in Note 5, Line of Credit and Notes Payable, Columbia Property Trust capitalizes interest incurred on outstanding debt balances as well as joint venture investments, as appropriate, during development or redevelopment of real estate held directly or in unconsolidated joint ventures. During the three months ended March 31, 2020 and 2019, $2.6 million and $0.9 million, respectively, of interest was capitalized to construction in progress; and during the three months ended March 31, 2020 and 2019, $0.4 million and $0.3 million, respectively, of interest was capitalized to investments in unconsolidated joint ventures.
Assets Held for Sale
Columbia Property Trust classifies properties as held for sale according to Accounting Standard Codification 360, Accounting for the Impairment or Disposal of Long-Lived Assets ("ASC 360"). According to ASC 360, properties having separately identifiable operations and cash flows are considered held for sale when all of the following criteria are met:
•Management, having the authority to approve the action, commits to a plan to sell the property.
•The property is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such property.
•An active program to locate a buyer and other actions required to complete the plan to sell the property have been initiated.
•The property is being actively marketed for sale at a price that is reasonable in relation to its current fair value.
•Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.
•The sale of the property is probable (i.e., typically subject to a binding sale contract with a non-refundable deposit), and transfer of the property is expected to qualify for recognition as a completed sale within one year.
As of March 31, 2020, none of Columbia Property Trust's properties met the criteria to be classified as held for sale in the accompanying balance sheets. As of December 31, 2019, Cranberry Woods Drive and Pasadena Corporate Park met the aforementioned criteria; thus, these properties are classified as held for sale in the accompanying consolidated balance sheets. The sale of Cranberry Woods closed on January 16, 2020; and the sale of Pasadena Corporate Park closed on March 31, 2020.
11
The major classes of assets and liabilities classified as held for sale as of December 31, 2019, are provided below (in thousands):
December 31, 2019
Real Estate Assets Held for Sale:
Real estate assets, at cost:
Land $ 57,117   
Buildings and improvements, less accumulated depreciation of $80,543
157,701   
Construction in progress 138   
Total real estate assets held for sale, net $ 214,956   
Other Assets Held for Sale:
Tenant receivables $ 156   
Straight-line rent receivable 12,591   
Prepaid expenses and other assets 334   
Deferred lease costs, less accumulated amortization of $10,222
10,836   
Total other assets held for sale, net $ 23,917   
Liabilities Held for Sale:
Accounts payable, accrued expenses, and accrued capital expenditures $ 1,151   
Deferred income 1,903   
Total liabilities held for sale $ 3,054   

Evaluating the Recoverability of Real Estate Assets
Columbia Property Trust continually monitors events and changes in circumstances that could indicate that the net carrying amounts of its real estate and related intangible assets and liabilities, of both operating properties and properties under development or redevelopment, may not be recoverable. When indicators of potential impairment are present that suggest that the net carrying amounts of real estate assets and related intangible assets and liabilities may not be recoverable, Columbia Property Trust assesses the recoverability of these net assets by determining whether the respective carrying values will be recovered through the estimated undiscounted future cash flows expected from the use of the net assets and their eventual disposition. In the event that such expected undiscounted future cash flows do not exceed the carrying values, Columbia Property Trust adjusts the carrying values of the real estate assets and related intangible assets and liabilities to the estimated fair values, pursuant to the property, plant, and equipment accounting standard for the impairment or disposal of long-lived assets, and recognizes an impairment loss. At such time that a property is required to be classified as held for sale, its net carrying amount is adjusted to the lower of its depreciated book value or its estimated fair value, less costs to sell, and depreciation is no longer recognized.
Estimated fair values are calculated based on the following hierarchy of information: (i) recently quoted market prices, (ii) market prices for comparable properties, or (iii) the present value of future cash flows, including estimated residual value. Projections of expected future operating cash flows require that Columbia Property Trust estimate future market rental income amounts subsequent to the expiration of current lease agreements, property operating expenses, the number of months it takes to re-lease the property, and the number of years the property is held for investment, among other factors. Due to the inherent subjectivity of the assumptions used to project future cash flows, estimated fair values may differ from the values that would be realized in market transactions. Certain of Columbia Property Trust's assets may be carried at an amount that exceeds that which could be realized in a current disposition transaction. Columbia Property Trust has determined that the carrying values of its real estate assets and related intangible assets are recoverable as of March 31, 2020.

12
Intangible Assets and Liabilities Arising From In-Place Leases Where Columbia Property Trust Is the Lessor
Upon the acquisition of real properties, Columbia Property Trust allocates the purchase price of the properties to tangible assets, consisting of land, building, site improvements, and identified intangible assets and liabilities, including the value of in-place leases, based in each case on Columbia Property Trust's estimate of their fair values in accordance with ASC 820 (see "Fair Value Measurements" section above for additional detail). As of March 31, 2020 and December 31, 2019, Columbia Property Trust had the following intangible assets and liabilities, arising from in-place leases, excluding amounts held for sale, if applicable (in thousands):
  Intangible Lease Assets Intangible
Lease
Origination
Costs 		Intangible
Below-Market
In-Place Lease
Liabilities
Above-Market
In-Place
Lease Assets 		Absorption
Period Costs
March 31, 2020 Gross $ 2,480    $ 115,596    $ 60,338    $ 36,287   
Accumulated Amortization (1,245)   (59,549)   (33,952)   (16,043)  
Net $ 1,235    $ 56,047    $ 26,386    $ 20,244   
December 31, 2019 Gross $ 2,481    $ 117,203    $ 61,702    $ 36,966   
Accumulated Amortization (1,202)   (57,457)   (33,731)   (15,127)  
Net $ 1,279    $ 59,746    $ 27,971    $ 21,839   

Amortization of Intangible Assets and Liabilities Arising From In-Place Leases
For the three months ended March 31, 2020 and 2019, Columbia Property Trust recognized the following amortization of intangible lease assets and liabilities (in thousands):
  Intangible Lease Assets Intangible
Lease
Origination
Costs 		Intangible
Below-Market
In-Place Lease
Liabilities
Above-Market
In-Place
Lease Assets 		Absorption
Period Costs
For the Three Months Ended March 31, 2020 $ 43    $ 3,700    $ 1,586    $ 1,596   
For the Three Months Ended March 31, 2019 $ 82    $ 3,656    $ 2,100    $ 1,426   

The net intangible assets and liabilities remaining as of March 31, 2020 will be amortized as follows, excluding amounts held for sale, if applicable (in thousands):
  Intangible Lease Assets Intangible
Lease
Origination
Costs 		Intangible
Below-Market
In-Place Lease
Liabilities
Above-Market
In-Place
Lease Assets 		Absorption
Period Costs
For the remainder of 2020 $ 129    $ 9,219    $ 4,296    $ 3,888   
For the years ending December 31:
2021 172    9,328    4,516    3,191   
2022 172    7,959    3,429    2,910   
2023 172    6,455    2,903    2,336   
2024 172    5,594    2,586    1,990   
2025 172    4,083    1,921    1,364   
Thereafter 246    13,409    6,735    4,565   
$ 1,235    $ 56,047    $ 26,386    $ 20,244   

13
Investments in Unconsolidated Joint Ventures
Columbia Property Trust uses the equity method to account for investments that are not wholly owned and: (i) are considered variable interest entities where the Company is not the primary beneficiary, or (ii) in which the Company, along with its co-owners, possesses substantive participation rights, including management selection and termination, and the approval of significant capital and operating decisions. Under the equity method, investments in unconsolidated joint ventures are recorded at cost and adjusted for cash contributions and distributions, and allocations of income or loss.
Investments in Real Estate Funds
In connection with the Normandy Acquisition described in Note 3, Transactions, Columbia Property Trust acquired general partnership interests and limited partnership interests in three real estate funds: Normandy Real Estate Fund III, LP; Normandy Real Estate Fund IV, LP; and Normandy Opportunity Zone Fund, LP (collectively, the "Real Estate Funds"). The Company owns minimal economic interests in the Real Estate Funds (ranging from 2.0% to 2.5%). Significant decision rights are shared between the general partners and limited partners; and the general partner can be removed with a majority vote from the limited partners. As a result, Columbia Property Trust accounts for its investments in the Real Estate Funds using the equity method. The Real Estate Funds are subject to the rules of the AICPA Investment Company Guide; as a result, GAAP requires the Company to record its investments in the Real Estate Funds at their respective estimated fair market values. The Company determines the Real Estate Funds' estimated net asset values per share using a discounted cash flow model, which is considered a Level 3 valuation technique (see Fair Value Measurements section above). As of March 31, 2020, investments in the Real Estate Funds of approximately $3.8 million are included in prepaid expenses and other assets on the accompanying consolidated balance sheet. From January 24, 2020 (date of acquisition) through March 31, 2020, Columbia Property Trust recognized an unrealized loss on its investments in Real Estate Funds of approximately $160,000, which is recorded as other income (loss) in the accompanying consolidated statements of operations.
Columbia Property Trust has entered into agreements to provide acquisition, disposition, investment management, property management, leasing, and other services to the properties in which the Real Estate Funds own interests. See Note 12, Non-Lease Revenues, for more details. From time to time, Columbia Property Trust may be required to make additional capital contributions to the Real Estate Funds. See Note 7, Commitments and Contingencies, for more details.
Goodwill
Goodwill represents purchase price not specifically assigned to assets acquired and liabilities assumed in a business combination. On January 24, 2020, Columbia Property Trust recorded goodwill of $63.8 million in connection with the Normandy Acquisition (see Note 3, Transactions for details). Columbia Property Trust assesses the recoverability of goodwill on an annual basis, and on an interim basis if an event occurs or circumstances change that would indicate that the carrying value of goodwill may be impaired. When indicators of potential impairment exist, Columbia evaluates whether the carrying value of the reporting unit to which the goodwill relates exceeds the reporting unit's estimated fair value. If the reporting unit's carrying value exceeds its estimated fair value, Columbia Property Trust would then perform the same assessment at the enterprise level. If the carrying value of Columbia Property Trust's equity exceeds the estimated fair value of the Company, then goodwill would be reduced, and an impairment loss would be recognized, for the amount of this excess (not to exceed total goodwill). Columbia Property Trust has determined that the carrying value of goodwill is recoverable as of March 31, 2020.

14
Interest Rate Swap Agreements
Columbia Property Trust enters into interest rate swap contracts to mitigate its interest rate risk on the related financial instruments. Columbia Property Trust does not enter into derivative or interest rate swap transactions for speculative purposes and currently does not have any derivatives that are not designated as hedges; however, certain of its derivatives may, at times, not qualify for hedge accounting treatment. Columbia Property Trust records the fair value of its interest rate swaps on its consolidated balance sheet either as prepaid expenses and other assets or as accounts payable, accrued expenses, and accrued capital expenditures. Changes in the fair value of interest rate swaps that are designated as cash flow hedges are recorded as other comprehensive income (loss). Changes in the fair value of interest rate swaps that do not qualify for hedge accounting treatment are recorded as gain or loss on interest rate swaps. Amounts received or paid under interest rate swap agreements are recorded as interest expense for contracts that qualify for hedge accounting treatment and as gain or loss on interest rate swaps for contracts that do not qualify for hedge accounting treatment. As of March 31, 2020, Columbia Property Trust has two interest rate swaps with an aggregate notional value of $450.0 million. The following tables provide additional information related to Columbia Property Trust's interest rate swaps (in thousands):
    Estimated Fair Value as of
Instrument Type Balance Sheet Classification March 31,
2020 		December 31,
2019
Derivatives Designated as Hedging Instruments:
Interest rate contracts Prepaid expenses and other assets $ —    $ 551   
Interest rate contracts Accounts payable $ 21,094    $ 1,652   
Columbia Property Trust applied the provisions of ASC 820 in recording its interest rate swaps at fair value. The fair values of the interest rate swaps, classified under Level 2, were determined using a third-party proprietary model that is based on prevailing market data for contracts with matching durations, current and anticipated London Interbank Offered Rate ("LIBOR") information, and reasonable estimates about relevant future market conditions. Columbia Property Trust has determined that the fair value, as determined by the third party, is reasonable.
  Three Months Ended
March 31,
  2020 2019
Market value adjustment to interest rate swaps designated as hedging instruments and included in other comprehensive income (loss) $ (19,993)   $ (1,431)  
During the periods presented, no hedge ineffectiveness was required to be recognized into earnings on the interest rate swaps that qualified for hedge accounting treatment.
Noncontrolling Interests
Noncontrolling interests represent the portion of equity in consolidated entities that is owned by third-parties. Noncontrolling interests are adjusted for cash contributions and distributions, and for earnings. Earnings are allocated between the Company and noncontrolling interests using the hypothetical liquidation at book value method pursuant to the terms of the respective ownership agreements, and are reflected as net income (loss) attributable to noncontrolling interests in the accompanying consolidated statements of operations.
Income Taxes
Columbia Property Trust has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the "Code") and has operated as such beginning with its taxable year ended December 31, 2003. To qualify as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of its REIT taxable income, as defined by the Code, to its stockholders. To the extent that Columbia Property Trust satisfies the distribution requirement but distributes less than 100% of its REIT taxable income, the Company would be subject to federal and state corporate income tax on the undistributed income. Generally, the Company does not incur federal income taxes, other than as described in the following paragraph, because its stockholder distributions typically exceed its taxable income due to noncash expenses such as depreciation. Columbia Property Trust is, however, subject
15
to certain state and local taxes related to the operations of properties in certain locations, which have been provided for in the accompanying consolidated financial statements.
Columbia Property Trust TRS, LLC; Columbia KCP TRS, LLC; Columbia Development TRS 13, LLC; and Columbia Development TRS 87, LLC (collectively, the "TRS Entities") are subsidiaries of the Company and are organized as Delaware limited liability companies. The TRS Entities, among other things, provide services related to asset and property management, construction and development, and other tenant services that Columbia Property Trust, as a REIT, cannot otherwise provide. The Company has elected to treat the TRS Entities as taxable REIT subsidiaries. Columbia Property Trust may perform certain additional, noncustomary services for tenants of its buildings through the TRS Entities; however, any earnings related to such services are subject to federal and state income taxes. In addition, for the Company to continue to qualify as a REIT, Columbia Property Trust must limit its investments in taxable REIT subsidiaries to 20% of the value of the total assets. The TRS Entities' deferred tax assets and liabilities represent temporary differences between the financial reporting basis and the tax basis of assets and liabilities based on the enacted rates expected to be in effect when the temporary differences reverse. If applicable, the Company records interest and penalties related to uncertain tax positions as general and administrative expense in the accompanying consolidated statements of operations.
Reclassification
Certain prior-period amounts on our consolidated statement of operations have been reclassified to conform with current-period's presentation: property operating costs includes amounts previously reported as asset and property management fees.
Recent Accounting Pronouncements
Accounting Standard Update 2020-04, Reference Rate Reform ("ASC 2020-04"), which was issued on and effective as of March 12, 2020, addresses the accounting and disclosure impacts of reference rate reform and the anticipated discontinuance of London Interbank Offering Rate ("LIBOR"). ASU 2020-04 provides optional guidance that may be elected over time, and includes practical expedients for activities that impact debt, leases, derivatives, and other contracts. Columbia Property Trust has matched LIBOR-based debt with LIBOR-based interest rate swaps, and has elected to apply the ASU 2020-04's practical expedients related to (i) probability and (ii) the assessment of the effectiveness for future LIBOR-indexed cash flows, which assume that the debt instrument will use the same index rate as its corresponding interest rate swap once a new reference rate is established to replace LIBOR. Application of these expedients preserves the effectiveness of our interest rate swaps as cash flow hedges in the event that our debt and interest rate swaps are not amended concurrently to reflect a new reference rate. Columbia Property Trust continues to evaluate the impact of the guidance and may apply other elections as additional reference rate changes occur. ASU 2020-04 did not have a material impact on Columbia Property Trust's consolidated financial statements or disclosures.
Accounting Standard Update 2018-13, Fair Value Measurement: Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement ("ASU 2018-13"), which became effective for Columbia Property Trust on January 1, 2020, is intended to improve the effectiveness of disclosures required by entities regarding recurring and nonrecurring fair value measurements by removing, modifying, or adding certain disclosures. ASU 2018-13 did not have a material impact on Columbia Property Trust's consolidated financial statements or disclosures.
Recent Disclosure Pronouncement
The SEC's Final Rule Release No. 33-10762, Financial Disclosures About Guarantors and Issuers of Guaranteed Securities and Affiliates Whose Securities Collateralize a Registrant's Securities (the "SEC Release No. 33-10762") was issued on March 2, 2020 and adopted by Columbia Property Trust in the first quarter of 2020. With respect to the disclosure requirements for subsidiary issuers and guarantors of registered debt securities, SEC Release No. 33-10762 amends SEC Rule 3-10 by, among other things:
•Simplifying the criteria that must be met for a parent registrant to qualify for an exemption allowing it to provide summarized financial information in lieu of standalone audited financial statements of the subsidiary issuer, including replacing the requirement that a subsidiary issuer be wholly owned by the parent guarantor with a requirement that the subsidiary issuer be consolidated in the parent guarantor’s financial statements.
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•Upon qualifying for the exemption above, replacing the previous requirement to include condensed consolidating financial information in the registrant's (parent guarantor's) financial statements, with a requirement to include certain summarized financial information (Alternative Disclosures) in either the registrant's financial statement footnotes or in its Management’s Discussion and Analysis.
Our Bonds Payable (see Note 6., Bond Payable) were issued by Columbia OP, and are fully and unconditionally guaranteed by Columbia Property Trust and by no other party. Columbia Property Trust owns 97.2% of Columbia OP, and includes the accounts of Columbia OP in its consolidated financial statements. Therefore, upon adopting SEC Release No. 33-10762 this quarter, we are providing Alternative Disclosures in the Management's Discussion and Analysis section of this Form 10-Q.

3.  Transactions
Normandy Acquisition
On January 24, 2020, Columbia Property Trust acquired Normandy Real Estate Management, LLC ("Normandy"), a developer, operator, and investment manager of office and mixed-use assets with a focus on assets in New York, Boston, and Washington, D.C. (the "Normandy Acquisition"). As a result of the Normandy Acquisition, the Company acquired an operating platform, interests in the Real Estate Funds, and contracts to earn fees for providing management services to properties affiliated with the Real Estate Funds (see Note 12, Non-Lease Revenues, for details).
The purchase price, exclusive of adjustments and transaction costs, is comprised of two components: (i) an approximately $14.0 million cash payment, and (ii) the issuance of 3,264,151 Series A Convertible, Perpetual Preferred Units of Columbia OP with a liquidation preference of $26.50 per unit (the "Preferred OP Units"). The Preferred OP Units are convertible for common units of Columbia OP, which are exchangeable into shares of Columbia Property Trust's common stock, subject to certain terms and conditions. As of the closing date of the acquisition, the Preferred OP Units had an estimated fair value of $24.43. The fair value of the Preferred OP Units was determined using a lattice valuation model, utilizing significant unobservable inputs (Level 3 under the fair value hierarchy described in Note 2, Summary of Significant Accounting Policies). The initial purchase consideration was allocated as follows (in thousands):
January 24, 2020
Goodwill $ 63,806   
Prepaid expenses and other assets(1)
7,670   
Cash 1,260   
Operating lease assets 934   
Investments in unconsolidated joint ventures(2)
419   
Accounts payable, accrued expenses, and accrued capital expenditures (2,881)  
Operating lease liabilities (934)  
Deferred income (77)  
Total initial purchase consideration $ 70,197   
(1)Prepaid expenses and other assets includes $3.7 million of investments in Real Estate Funds, as described in Note 2, Summary of Significant Accounting Policies.
(2)Reflects interests in five unconsolidated joint ventures that earn fees for providing management services to properties affiliated with the Real Estate Funds.
In addition, approximately $24.4 million will be recorded as compensation expense over the next four years based on the vesting periods of the respective Preferred OP Units. During the first quarter of 2020, Columbia Property Trust incurred $12.1 million of transaction costs related to the Normandy Acquisition, which include legal, advisory, and other professional services fees and is reflected as acquisition costs on the accompanying consolidated statements of operations. For the period from January 24, 2020 through March 31, 2020, Columbia Property Trust recognized additional revenues of $5.2 million and additional net income, excluding the impact of acquisition costs, of $0.7 million as a result of the Normandy Acquisition.
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Real Estate Acquisitions
Property Location Date Percent Acquired
Purchase Price
(in thousands)(1)
2020
Terminal Warehouse New York, NY March 13, 2020 8.65  % $ 40,048   
(2)
2019
201 California Street San Francisco, CA December 9, 2019 100.00  % $ 238,900   
101 Franklin Street(3)
New York, NY December 2, 2019 92.50  % $ 205,500   
(1)Exclusive of transaction costs and price adjustments. See purchase price allocation table below for a breakout of the net purchase price for wholly owned properties.
(2)This property is owned through an unconsolidated joint venture. Purchase price is for Columbia Property Trust's partial interest in the property.
(3)Property is owned through a consolidated joint venture.
Terminal Warehouse Joint Venture
On March 13, 2020, Columbia Property Trust acquired a one-third general partnership interest and limited partnership interests, totaling an 8.65% economic interest, in Terminal Warehouse, a 1.2-million-square-foot property located in West Chelsea, New York, that will be fully redeveloped into mixed-use retail and office space (the "Terminal Warehouse Joint Venture"). The Terminal Warehouse Joint Venture has a two-year, interest-only acquisition loan with a total capacity of $650.0 million, and an outstanding balance of $625.5 million as of March 31, 2020. The loan matures on October 23, 2020, with a one-year extension option. The Company earns fees from providing management services to the Terminal Warehouse Joint Venture. See Note 4, Unconsolidated Joint Ventures, and Note 12, Non-Lease Revenues, for more detail.
201 California Street
On December 9, 2019, Columbia Property Trust acquired 201 California Street, a 17-story, 252,000-square-foot office tower in San Francisco. As of the acquisition date, 201 California Street was 99% leased to 34 tenants, including First Republic Bank (13%), Dow Jones & Company, Inc. (12%), and Cooper, White & Cooper, LLP (12%). For the period from December 9, 2019 to December 31, 2019, Columbia Property Trust recognized revenues of $1.4 million and net income of $0.1 million from 201 California Street.
101 Franklin Street
On December 2, 2019, Columbia Property Trust acquired a 92.5% controlling financial interest in 101 Franklin Street, a 16-story, 235,000-square-foot office building in Manhattan that will be fully redeveloped through a consolidated joint venture.
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Purchase Price Allocations for Consolidated Property Acquisitions
201 California Street
101 Franklin Street(1)
(in thousands) (in thousands)
Location San Francisco, CA New York, NY
Date Acquired December 9, 2019 December 2, 2019
Purchase Price:
Land $ 77,833    $ 57,145   
Building and improvements 157,513    149,500   
Intangible lease assets 13,241    —   
Intangible lease origination costs 5,785    —   
Intangible below market lease liability (8,064)   —   
Total purchase price $ 246,308    $ 206,645   
(1)Owned through a consolidated joint venture, in which Columbia Property Trust owns a 92.5% interest.
Pro Forma Financial Information
The following unaudited pro forma statement of operations presented for the three months ended March 31, 2019, has been prepared for Columbia Property Trust to give effect to the acquisitions of 201 California Street and 101 Franklin Street as if the acquisitions had occurred on January 1, 2018. The following unaudited pro forma financial information for Columbia Property Trust has been prepared for informational purposes only and is not necessarily indicative of future results or of actual results that would have been achieved had these acquisitions been consummated as of January 1, 2018 (in thousands):
For the Three Months Ended March 31, 2019
Revenues $ 79,656   
Net income attributable to common stockholders of Columbia Property Trust $ 5,736   

Real Estate Dispositions
During 2020 and 2019, Columbia Property Trust sold the following properties, or partial interests in properties of unconsolidated joint ventures. Additional information for certain of the disposition transactions is provided below the table.
Property Location Date % Sold
Sales Price(1)
(in thousands)
Gain (loss) on Sale
(in thousands)
2020
Pasadena Corporate Park Los Angeles, CA March 31, 2020 100  % $ 78,000    $ (83)  
Cranberry Woods Drive Pittsburgh, PA January 16, 2020 100  % $ 180,000    $ 13,428   
2019
Lindbergh Center Atlanta, GA September 26, 2019 100  % $ 187,000    $ —   
One & Three Glenlake Parkway Atlanta, GA April 15, 2019 100  % $ 227,500    $ 42,030   
(1)Exclusive of transaction costs and price adjustments.

Pasadena Corporate Park
On March 31, 2020, Columbia Property Trust closed on the sale of Pasadena Corporate Park for a gross sales price of $78.0 million, exclusive of transaction costs, resulting in a loss on sale of $83,000. Columbia Property Trust recognized an impairment loss of $20.6 million related to this property in the fourth quarter of 2019. The proceeds from this transaction are held in cash and cash equivalents on the accompanying consolidated balance sheet as of March 31, 2020.
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Cranberry Woods Drive
On January 19, 2020, Columbia Property Trust closed on the sale of Cranberry Woods Drive for a gross sales price of $180.0 million, exclusive of transaction costs, resulting in a gain on sale of $13.4 million. The proceeds from this transaction were used to pay down the Revolving Credit Facility, as described in Note 5, Line of Credit and Notes Payable.
Lindbergh Center
On September 26, 2019, Columbia Property Trust closed on the sale of Lindbergh Center, including Lindbergh Center – Retail, for a gross sales price of $187.0 million, exclusive of transaction costs. Columbia Property Trust recognized an impairment loss of $23.4 million related to this property in the third quarter of 2019. $46.0 million of the proceeds from this transaction had been used to pay down the Revolving Credit Facility, as described in Note 5, Line of Credit and Notes Payable.
One & Three Glenlake Parkway
On April 15, 2019, Columbia Property Trust closed on the sale of One & Three Glenlake Parkway in Atlanta, for a gross sale price of $227.5 million, exclusive of $33.6 million of adjustments for tenant improvements and rent abatements funded at closing. The proceeds from this transaction were used to pay down the Revolving Credit Facility, as described in Note 5, Line of Credit and Notes Payable.

4. Unconsolidated Joint Ventures
As of March 31, 2020 and December 31, 2019, Columbia Property Trust owned interests in the following properties through joint ventures, which are accounted for using the equity method of accounting (in thousands):
Carrying Value of Investment(1)
Joint Venture Property Name Geographic Market Ownership Interest March 31, 2020 December 31, 2019
Market Square Joint Venture Market Square Washington, D.C. 51.00  % $ 136,481    $ 135,557   
University Circle Joint Venture University Circle San Francisco 55.00  % 281,457    283,633   
333 Market Street Joint Venture 333 Market Street San Francisco 55.00  % 268,438    269,638   
114 Fifth Avenue Joint Venture 114 Fifth Avenue New York 49.50  % 83,726    87,750   
1800 M Street Joint Venture 1800 M Street Washington, D.C. 55.00  % 230,570    233,196   
799 Broadway Joint Venture(2)
799 Broadway New York, NY 49.70  % 46,620    44,686   
Terminal Warehouse Joint Venture Terminal Warehouse New York, NY 8.65  % 39,724    —   
Real Estate Services Joint Ventures(3)
n/a(3)
n/a(3)
Various(3)
678    —   
$ 1,087,694    $ 1,054,460   
(1)Includes basis differences. There is an aggregate net difference of $288.9 million and $279.2 million as of March 31, 2020 and December 31, 2019, respectively, between the historical costs recorded at the joint venture level, and Columbia Property Trust's investments in unconsolidated joint ventures. Such basis differences result from the timing of each partner's joint venture interest acquisition; and formation costs incurred by Columbia Property Trust. Basis differences are amortized to income (loss) from unconsolidated joint ventures over the lives of the underlying assets or liabilities.
(2)Columbia Property Trust capitalized interest of $0.4 million and $0.3 million on its investment in the 799 Broadway Joint Venture during the three months ended March 31, 2020 and 2019, respectively.
(3)Columbia Property Trust owns interests in the following five unconsolidated joint ventures that earn fees for providing management services to properties affiliated with the Real Estate Funds (the "Real Estate Services Joint Ventures"): L&L Normandy Terminal Asset Manager, LLC (67%); L&L Normandy Terminal Development Manager, LLC (50%); L&L Normandy Terminal Property Manager (50%) (collectively, the "Terminal Services Joint Ventures"); WNK Maiden Management (50%); and Maple AB Services, LLC (55%). The Terminal Services Joint Ventures earn fees from providing services to the Terminal Warehouse Joint Venture.
Columbia Property Trust has determined that none of its unconsolidated joint ventures are variable interest entities. However, Columbia Property Trust and its partners have substantive participation rights in the unconsolidated joint ventures, including management selection and termination, and the approval of operating and capital decisions. As such, Columbia Property Trust uses the equity method of accounting to record its investment in these joint ventures. Under
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the equity method, investments in unconsolidated joint ventures are recorded at cost and adjusted for cash contributions and distributions, and allocations of income or loss.
Columbia Property Trust evaluates the recoverability of its investments in unconsolidated joint ventures in accordance with accounting standards for equity investments by first reviewing the investment for any indicators of impairment. If indicators are present, Columbia Property Trust estimates the fair value of the investment. If the carrying value of the investment exceeds the estimated fair value, management makes an assessment of whether the deficit is "temporary" or "other-than-temporary," and if other-than-temporary, reduces the carrying value to reflect the estimated fair value by recording an impairment loss. In making this assessment, management considers the following: (1) the length of time and the extent to which fair value has been less than cost and (2) Columbia Property Trust's intent and ability to retain its interest long enough for a recovery in market value. Based on the analysis described above, Columbia Property Trust has determined that none of its investments in joint ventures are impaired as of March 31, 2020.
Condensed Combined Financial Information
Summarized balance sheet information for each of the unconsolidated joint ventures is as follows (in thousands):
Total Assets Total Debt
Total Equity(1)
March 31,
2020 		December 31, 2019 March 31,
2020 		December 31, 2019 March 31,
2020 		December 31, 2019
Market Square Joint Venture $ 579,363    $ 582,747    $ 324,828   
(2)
$ 324,815    $ 242,942    $ 241,719   
University Circle Joint Venture 217,185    216,546    —    —    211,218    212,656   
333 Market Street Joint Venture 364,893    367,652    —    —    349,936    352,385   
114 Fifth Avenue Joint Venture 476,785    485,442    —    —    119,831    127,554   
1800 M Street Joint Venture 429,767    437,439    —    —    416,836    421,588   
799 Broadway Joint Venture 220,024    201,210    119,156   
(3)
109,735    88,374    85,316   
Terminal Warehouse 1,042,748    —    618,766   
(4)
—    339,319    —   
Real Estate Services Joint Ventures 2,495    —    —    —    1,198    —   
$ 3,333,260    $ 2,291,036    $ 1,062,750    $ 434,550    $ 1,769,654    $ 1,441,218   
(1)Excludes basis differences (see footnote (1) to the Carrying Value of Investment table above), which are amortized to income (loss) from unconsolidated joint ventures over the lives of the underlying assets of liabilities.
(2)The Market Square Joint Venture has a $325.0 million mortgage note. The Market Square mortgage note bears interest at 5.07% and matures on July 1, 2023.
(3)Reflects $122.1 million outstanding, net of $3.0 million of net unamortized deferred financing costs, on the 799 Broadway construction loan. The 799 Broadway construction loan is being used to finance a portion of the 799 Broadway development project, has total capacity of $187.0 million, and bears interest at LIBOR, capped at 4.00%, plus a spread of 425 basis points (the "Construction Loan").  A portion of the monthly interest payments accrue into the balance of the loan. The Construction Loan matures on October 9, 2021, with two one-year extension options. For a discussion of Columbia Property Trust's equity guaranty related to the Construction Loan, see Note 7, Commitments and Contingencies.
(4)Reflects $625.5 million outstanding, net of $6.7 million of net unamortized deferred financing costs, on the Terminal Warehouse acquisition loan. The Terminal Warehouse Joint Venture has an interest-only acquisition loan with a total capacity of $650.0 million. The Terminal Warehouse acquisition loan bears interest at LIBOR plus 340 basis points and matures on October 23, 2020, with a one-year extension option.

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Summarized income statement information for the unconsolidated joint ventures for the three months ended March 31, 2020 and 2019 is as follows (in thousands):
Total Revenues Net Income (Loss)
Columbia Property Trust's Share of Net Income (Loss)(1)
2020 2019 2020 2019 2020 2019
Market Square Joint Venture $ 12,690    $ 11,337    $ (1,994)   $ (2,595)   $ (1,017)   $ (1,323)  
University Circle Joint Venture 10,924    11,272    5,715    6,364    3,144    3,500   
333 Market Street Joint Venture 7,067    7,054    3,705    3,713    2,037    2,042   
114 Fifth Avenue Joint Venture 10,428    10,919    (2,653)   (2,506)   (1,314)   (1,240)  
1800 M Street Joint Venture 9,937    9,454    1,752    388    964    214   
799 Broadway Joint Venture —    —    (32)   (526)   (16)   (262)  
Terminal Warehouse 2,307    —    (3,741)   —    (324)   —   
Real Estate Services Joint Ventures 1,875    —    938    —    341    —   
$ 55,228    $ 50,036    $ 3,690    $ 4,838    $ 3,815    $ 2,931   
(1)Excludes amortization of basis differences (see footnote to (1) the Carrying Value of Investment table above), which are recorded as income (loss) from unconsolidated joint ventures in the accompanying consolidated statements of operations.
Management Fees
Columbia Property Trust provides services to the following joint ventures, including asset and property management and/or development management. Under the asset and property management agreements, Columbia Property Trust oversees the day-to-day operations of these joint ventures and their properties, including property management, property accounting, and other administrative services. Under the development management agreements, Columbia Property Trust oversees the development or redevelopment projects at the joint-venture-owned properties. During the three months ended March 31, 2020 and 2019, Columbia Property Trust earned the following fees from its unconsolidated joint ventures (in thousands):
Three Months Ended
March 31,
2020 2019
Market Square Joint Venture $ 574    $ 568   
University Circle Joint Venture 587    574   
333 Market Street Joint Venture 214    207   
1800 M Street Joint Venture 555    520   
799 Broadway Joint Venture 223    —   
$ 2,153    $ 1,869   

In the first quarter of 2020, Columbia Property Trust earned reimbursement income for management fee administration costs of $1.3 million which is included in management fee revenues. In the first quarter of 2019, Columbia Property Trust earned reimbursement income for management fee administration costs of $1.2 million which is included in other property income.
Asset and property management fees of $0.3 million and $0.6 million were due to Columbia Property Trust from the joint ventures and are included in prepaid expenses and other assets on the accompanying consolidated balance sheets as of March 31, 2020 and December 31, 2019, respectively.
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Columbia Property Trust also earns management fees through its interest in the the Real Estate Services Joint Ventures, which are recorded as income in unconsolidated joint ventures in the accompanying consolidated statement of operations.

5. Line of Credit and Notes Payable
As of March 31, 2020 and December 31, 2019, Columbia Property Trust had the following line of credit and notes payable indebtedness (excluding bonds payable; see Note 6, Bonds Payable) (in thousands):
Facility March 31,
2020 		December 31,
2019
Revolving Credit Facility $ 501,000    $ 334,000   
$300 Million Term Loan
300,000    300,000   
$150 Million Term Loan
150,000    150,000   
Less: Deferred financing costs related to term loans and notes payable, net of accumulated amortization (1,930)   (2,084)  
$ 949,070    $ 781,916   
Columbia Property Trust's amended and restated credit and term loan agreement (the "Credit Agreement") provides for (i) a $650.0 million unsecured revolving credit facility (the "Revolving Credit Facility"), with an initial term ending January 31, 2023 and two six-month extension options (for a total possible extension option of one year to January 31, 2024), subject to the paying of certain fees and the satisfaction of certain other conditions, and (ii) a $300.0 million unsecured term loan, with a term ending January 31, 2024 (the "$300 Million Term Loan").
At Columbia Property Trust's option, borrowings under the Credit Agreement bear interest at either (i) the alternate base rate plus an applicable margin based on five stated pricing levels ranging from 0.00% to 0.45% for the Revolving Credit Facility and 0.00% to 0.65% for the $300 Million Term Loan, or (ii) the LIBOR rate, as defined in the credit agreement, plus an applicable margin based on five stated pricing levels ranging from 0.775% to 1.45% for the Revolving Credit Facility and 0.85% to 1.65% for the $300 Million Term Loan, in each case based on Columbia Property Trust's credit rating. The interest rate on the $300 Million Term Loan has been effectively fixed at 2.55% with an interest rate swap agreement.
Columbia Property Trust's $150.0 million unsecured term loan matures in July 2022 (the "$150 Million Term Loan") and bears interest, at our option, at either (i) LIBOR, plus an applicable margin ranging from 0.90% to 1.75% for LIBOR loans, or (ii) alternative base rate, plus an applicable margin ranging from 0.00% to 0.75% for base rate loans. The interest rate on the $150 Million Term Loan is effectively fixed with an interest rate swap agreement, which is designated as a cash flow hedge. Based on the terms of the interest rate swap and our current credit rating, the interest rate on the $150 Million Term Loan is effectively fixed at 3.07%.
Fair Value of Debt
The estimated fair value of Columbia Property Trust's line of credit and notes payable as of March 31, 2020 and December 31, 2019, was approximately $935.8 million and $784.1 million, respectively. The related carrying value of the line of credit and notes payable as of March 31, 2020 and December 31, 2019, was $951.0 million and $784.0 million, respectively. Columbia Property Trust estimated the fair value of its term loans and the Revolving Credit Facility by obtaining estimates for similar facilities from multiple market participants as of the respective reporting dates. Therefore, the fair values determined are considered to be based on observable market data for similar instruments (Level 2).
Interest Paid and Capitalized
During the three months ended March 31, 2020 and 2019, Columbia Property Trust made interest payments of approximately $5.0 million and $5.6 million, respectively.
Columbia Property Trust capitalizes interest on development, redevelopment, and improvement projects funded directly and through its interest in unconsolidated joint ventures, using the weighted-average interest rate of its consolidated
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borrowings for the period. During the three months ended March 31, 2020, Columbia Property Trust capitalized interest of $3.0 million, $2.6 million of which was capitalized to construction in progress, and $0.4 million of which was capitalized to investments in unconsolidated joint ventures. During the three months ended March 31, 2019, Columbia Property Trust capitalized interest of $1.2 million, $0.9 million of which was capitalized to construction in progress and $0.3 million of which was capitalized to investments in unconsolidated joint ventures. For the three months ended March 31, 2020, the weighted average interest rate on Columbia Property Trust's consolidated outstanding borrowings was 3.26%.
Debt Covenants
As of March 31, 2020, Columbia Property Trust was in compliance with all of its debt covenants on its term loans and the Revolving Credit Facility.

6. Bonds Payable
Columbia Property Trust has two series of bonds outstanding as of March 31, 2020 and December 31, 2019: $350.0 million of 10-year, unsecured 3.650% senior notes issued at 99.626% of their face value (the "2026 Bonds Payable"); and $350.0 million of 10-year, unsecured 4.150% senior notes issued at 99.859% of their face value (the "2025 Bonds Payable"), (collectively, the "Bonds Payable"). Both series of bonds require semi-annual interest payments. The principal amount of the 2026 Bonds Payable is due and payable on August 15, 2026, and the principal amount of the 2025 Bonds Payable is due and payable on April 1, 2025. The Bonds Payable were issued by Columbia OP and are fully and unconditionally guaranteed by Columbia Property Trust, Inc.
Interest payments of $6.4 million were made on the Bonds Payable during both the three months ended March 31, 2020 and 2019. Columbia Property Trust is subject to substantially similar covenants under the 2026 Bonds Payable and the 2025 Bonds Payable. As of March 31, 2020, Columbia Property Trust was in compliance with the restrictive financial covenants on the 2026 Bonds Payable and the 2025 Bonds Payable.
As of March 31, 2020 and December 31, 2019, the estimated fair value of the Bonds Payable was approximately $735.7 million and $734.4 million, respectively, and the related carrying value, net of discounts, as of both March 31, 2020 and December 31, 2019 was $698.9 million. The fair value of the Bonds Payable was estimated based on a discounted cash flow analysis, using observable market data for its bonds payable and similar instruments (Level 2). The discounted cash flow method of assessing fair value results in a general approximation of value, which may differ from the price that could be achieved in a market transaction.

7.  Commitments and Contingencies
Commitments Under Existing Lease Agreements
Certain lease agreements include tenant allowances that, at the option of the tenant, may obligate Columbia Property Trust to expend capital to improve an existing property, or to provide other expenditures for the benefit of the tenant. As of March 31, 2020, Columbia Property Trust has the following material tenant obligations under leases: (i) $15.9 million related to the WeWork lease at 149 Madison, and (ii) $17.6 million related to the Pershing lease at 95 Columbus. As of March 31, 2020, accruals have not been recorded for these amounts, as such obligations are recorded as incurred. In addition, in January 2020, Columbia Property Trust preleased space to be added to 80 M Street in a vertical expansion project. Columbia is required to fund approximately $65.3 million for construction and tenant improvement allowances related to the new space at 80 M Street.
Commitments Under Joint Venture Agreements
Columbia Property Trust's joint venture agreements, including those that are developing or redeveloping properties, provide for capital contributions to be made to the joint ventures by the joint venture partners. As of March 31, 2020, Columbia Property Trust holds eight properties through consolidated and unconsolidated joint ventures, including three that are under development or redevelopment. Capital contributions are payable when a capital call is made by the joint venture, and there are no unfunded capital calls as of March 31, 2020.
As of March 31, 2020, the 799 Broadway Joint Venture has $122.1 million in outstanding borrowings on the Construction Loan. Pursuant to a joint and several guaranty agreement with the Construction Loan lender, Columbia Property Trust
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and its joint venture partner are required to make aggregate additional equity contributions to the joint venture based on the initial expected project costs, less the amount of equity contributions made to date. As of March 31, 2020, the remaining equity contribution requirement is $28.8 million, of which $14.3 million reflects Columbia Property Trust's allocated share. Equity contributions become payable by Columbia Property Trust to the joint venture when a capital call is received. As of March 31, 2020, no capital calls remain unpaid; therefore, no liability has been recorded related to this guaranty.
Commitments Under Real Estate Fund Agreements
Columbia Property Trust's Real Estate Fund investments require capital contributions from time to time. As of March 31, 2020, the Company had $4.6 million of unfunded capital contributions, which are callable for the life of the Real Estate Funds, through 2026. Such capital contributions are payable when a capital call is made by the Real Estate Funds, and there are no unfunded capital calls as of March 31, 2020.
Litigation
Columbia Property Trust is subject to various legal proceedings, claims, and administrative proceedings arising in the ordinary course of business, some of which are expected to be covered by liability insurance. Management makes assumptions and estimates concerning the likelihood and amount of any reasonably possible loss relating to these matters using the latest information available. Columbia Property Trust records a liability for litigation if an unfavorable outcome is probable, and the amount of loss or range of loss can be reasonably estimated. If an unfavorable outcome is probable and a reasonable estimate of the loss is a range, Columbia Property Trust accrues the best estimate within the range. If no amount within the range is a better estimate than any other amount, Columbia Property Trust accrues the minimum amount within the range. If an unfavorable outcome is probable but the amount of the loss cannot be reasonably estimated, Columbia Property Trust discloses the nature of the litigation and indicates that an estimate of the loss or range of loss cannot be made. If an unfavorable outcome is reasonably possible and the estimated loss is material, Columbia Property Trust discloses the nature and estimate of the possible loss of the litigation. Columbia Property Trust does not disclose information with respect to litigation where the possibility of an unfavorable outcome is considered to be remote. Based on current expectations, such matters, both individually and in the aggregate, are not expected to have a material adverse effect on the liquidity, results of operations, business, or financial condition of Columbia Property Trust. Columbia Property Trust is not currently involved in any legal proceedings of which management would consider the outcome to be reasonably likely to have a material adverse effect on the results of operations, liquidity, or financial condition of Columbia Property Trust.

8. Stockholders' Equity
Common Stock Repurchase Program
Columbia Property Trust's board of directors authorized a stock repurchase program to purchase up to an aggregate of $200.0 million of its common stock, par value $0.01 per share, from September 4, 2019 through September 4, 2021 (the "2019 Stock Repurchase Program"). Under the 2019 Stock Repurchase Program, Columbia Property Trust acquired 1.2 million shares at an average price of $19.47 per share, for aggregate purchases of $23.3 million during the three months ended March 31, 2020. As of March 31, 2020, $143.3 million remains available for repurchases under the 2019 Stock Repurchase Program. Common stock repurchases are charged against equity as incurred, and the repurchased shares are retired.
Long-Term Incentive Compensation
Columbia Property Trust maintains a stockholder-approved, long-term incentive plan (the "LTI Plan") that provides for grants of up to 4.8 million shares of stock to be made to certain employees and independent directors of Columbia Property Trust.
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Employee Awards
Under the LTI Plan, Columbia Property Trust grants time-based stock awards and performance-based restricted stock unit awards to its employees.
During the three months ended March 31, 2020, Columbia Property Trust granted 294,725 shares of stock awards (the "Time-Based Restricted Shares") to employees, which will vest ratably on each anniversary of the grant over the next four years. Also, during the three months ended March 31, 2020, Columbia Property Trust granted 351,730 of performance-based restricted stock units (the "Performance-Based RSUs"), of which 75% will vest at the conclusion of a three-year performance period, and the remaining 25% will vest one year later. The payout of the Performance-Based RSUs will be determined based on Columbia Property Trust's total stockholder return relative to the FTSE NAREIT Equity Office Index. Below is a summary of the employee awards issued under the LTI Plan during the three months ended March 31, 2020:
Time-Based Awards Performance-Based Awards
Restricted Shares
(in thousands)
Weighted-Average
Grant-Date
Fair Value(1)
RSUs
(in thousands)
Weighted-Average
Grant-Date
Fair Value(2)
Unvested awards – beginning of period 374    $ 20.96    584    $ 18.86   
Granted 295    $ 21.06    303    $ 18.06   
Converted(3)
33    (33)  
Vested (166)   $ 21.22    (101)   $ 18.48   
Forfeited —    $ —    (9)   $ 20.49   
Unvested awards – end of period(4)
536    $ 20.94    744    $ 18.58   
(1)Reflects the weighted-average, grant-date fair value using the market closing price on the date of the respective grants.
(2)Reflects the weighted-average, grant-date fair value using a Monte Carlo valuation.
(3)Reflects 25% of the 2017 3-year Performance-Based RSUs granted on January 1, 2017, which converted to Time-Based Restricted shares in January 2020 and will vest in January 2021.
(4)As of March 31, 2020, Columbia Property Trust expects approximately 514,000 of the 536,000 unvested restricted stock units to ultimately vest and approximately 713,000 of the 744,000 unvested Performance-Based RSUs to ultimately vest, assuming a weighted-average forfeiture rate of 4.1%, which was determined based on historical forfeiture rates.
Director Stock Grants
Columbia Property Trust grants equity retainers to its directors under the LTI Plan. Such grants are made annually for the following year and vest immediately. During the three months ended March 31, 2020 and 2019, Columbia Property Trust made the following equity retainer grant:
Date of Grant Shares Grant-Date Fair Value
March 2, 2020(1)
591    $ 19.80   
(1)In March 2020, a new director was appointed to the board of directors of Columbia Property Trust. The new director received a pro-rated annual equity retainer grant at appointment.

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Stock-Based Compensation Expense
For the three months ended March 31, 2020 and 2019, Columbia Property Trust incurred stock-based compensation expense related to the following events (in thousands):
Three Months Ended
March 31,
2020 2019
Amortization of time-based awards $ 947    $ 884   
Amortization of performance-based awards(1)
1,031    655   
Amortization of Preferred OP unit awards issued in connection with the Normandy Acquisition 2,358    —   
Issuance of shares to independent directors 12    —   
Total stock-based compensation expense $ 4,348    $ 1,539   
(1)Reflects amortization of awards made under the LTI Plan that will vest in future periods for service during the current period.
These expenses are included in general and administrative expenses – corporate in the accompanying consolidated statements of operations. As of March 31, 2020 and December 31, 2019, there were $18.3 million and $9.5 million, respectively, of unrecognized compensation costs related to unvested awards under the LTI Plan, which will be amortized over the respective vesting period, ranging from one to four years at the time of grant; and as of March 31, 2020, there were $22.1 million of unvested Preferred OP unit awards, which will vest over four years at the time of grant.
9.  Noncontrolling Interests
Noncontrolling Interest – Columbia OP
In connection with the Normandy Acquisition, Columbia Property Trust issued 3,264,151 Series A Convertible, Preferred Units of Columbia OP with a liquidation preference of $26.50 per unit (the “Preferred OP Units”). The Preferred OP Units vest over four years, subject to certain conditions. The Preferred OP Units are convertible into common units of Columbia OP, which are exchangeable for shares of Columbia Property Trust's common stock on a one-for-one basis, subject to certain terms and conditions. As of March 31, 2020, Columbia Property Trust holds a 97.2% controlling financial interest in Columbia OP. Columbia OP is a variable interest entity in which the Company is the primary beneficiary. Thus, Columbia Property Trust consolidates the accounts of Columbia OP, and reflects the third-party ownership in this entity as noncontrolling interest in the accompanying consolidated balance sheet. As of March 31, 2020, Columbia OP has total assets and liabilities of $4.3 billion and $1.9 billion, respectively.
Noncontrolling Interest – Consolidated Joint Venture
Columbia Property Trust holds a 92.5% controlling financial interest in 101 Franklin Street, a 16-story, 235,000-square-foot office building in Manhattan that will be fully redeveloped through a consolidated joint venture with an affiliate of Normandy. 101 Franklin Street is a variable interest entity, or VIE, in which Columbia Property Trust is the primary beneficiary. Thus, the Company consolidates the accounts of 101 Franklin Street, and reflects the third-party ownership in this entity as noncontrolling interest in the accompanying consolidated balance sheet. As of March 31, 2020, Franklin Street had total assets and liabilities of $5.1 million and $3.0 million, respectively.


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10.  Supplemental Disclosures of Noncash Investing and Financing Activities
Outlined below are significant noncash investing and financing activities for the three months ended March 31, 2020 and 2019 (in thousands): 
  Three Months Ended
March 31,
  2020 2019
Other assets assumed at acquisition $ 245    $ —   
Operating lease liability assumed at acquisition $ 961    $ 34,791   
Other liabilities assumed at acquisition $ 245    $ —   
Amortization of net discounts on debt
$ 45    $ 45   
Accrued investments in unconsolidated joint ventures $ —    $ 88   
Accrued capital expenditures and deferred lease costs $ 15,447    $ 19,603   
Market value adjustments to interest rate swaps that qualify for hedge accounting treatment $ (19,993)   $ (1,431)  
Issuance of Preferred OP Units for the Normandy Acquisition (Note 3) $ 55,306    $ —   
Stock-based compensation expense $ 4,348    $ 1,539   

11.  Leases
Columbia Property Trust as Lessee
Columbia Property Trust is a lessee on ground leases at certain of its investment properties, office space leases, and various information technology equipment leases. As of March 31, 2020, Columbia Property Trust has one ground lease with a remaining lease term of 57.8 years inclusive of renewal options, which is included in operating lease assets of $30.1 million. Payments for all future periods under this ground lease have already been made. Thus, as of March 31, 2020, operating lease liabilities of $2.9 million include only the present value of future payments due under two office leases, with a weighted average remaining lease term of 2.5 years, inclusive of renewal options.
Columbia Property Trust as Lessor
Columbia Property Trust owns and leases commercial real estate, primarily office space, to tenants under operating leases for specified periods of time. Rental income related to such leases is recognized on a straight-line basis over the remaining lease period, and is included in lease revenues on the consolidated statements of operations. As of March 31, 2020, the weighted-average remaining term for such leases is approximately 6.4 years.
Lease revenues include fixed and variable payments. Fixed payments primarily relate to base rent and include payments related to lease terminations; and variable payments primarily relate to tenant reimbursements for certain property operating costs. Fixed and variable payments for the three months ended March 31, 2020 are as follows (in thousands):
For the Three Months Ended March 31,
2020 2019
Fixed payments $ 61,243    $ 65,517   
Variable payments 6,764    6,345   
Total lease revenues $ 68,007    $ 71,862   

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12.  Non-Lease Revenues
Columbia Property Trust derives most of its revenues from leases, as described in Note 11, Leases. Columbia Property Trust also has the following non-lease revenue streams.
Management Fee Revenue
Under asset and property management agreements in place with third parties and certain of its unconsolidated joint ventures, Columbia Property Trust earns revenue for performing asset and property management functions for properties owned by the Real Estate Funds and its joint ventures, as further described in Note 4, Unconsolidated Joint Ventures, as well as third-party-owned properties. For the three months ended March 31, 2020 and 2019, Columbia Property Trust earned management fee revenues of $4.3 million and $1.9 million, respectively, under these agreements.
Leasing Fees
Under asset and property management agreements in place with third parties and for certain properties owned by joint ventures and the Real Estate Funds, Columbia Property Trust is eligible to earn leasing fees equal to a percentage of the total rental payments to be made by the tenant over the term of the lease. For the three months ended March 31, 2020 and 2019, Columbia Property Trust earned leasing override fees of $14,600 and $3,000, respectively. Such fees are included in management fee revenue on the accompanying consolidated statements of operations.
Construction and Development Fee Income
Under construction and development contracts in place with third-party properties and for certain properties owned by joint ventures and the Real Estate Funds, Columbia Property Trust earns fees related to construction and development project management and supervision, using a percentage of completion method, measured by the percentage of costs incurred to date as compared with the estimated total costs for each contract. For the three months ended March 31, 2020, Columbia Property Trust earned construction and development fees of $0.8 million. Such fees are included in management fee revenue on the accompanying consolidated statements of operations.
Salary and Other Reimbursement Revenue
Under the property management agreements for third-party-owned properties and certain properties owned through joint ventures and the Real Estate Funds, Columbia Property Trust receives reimbursements for salaries and property operating costs for services that are provided by Columbia Property Trust employees on an ongoing basis. For the three months ended March 31, 2020 and 2019, Columbia Property Trust earned salary and other reimbursement revenue of $3.1 million and $1.1 million, respectively. These amounts are included in management fee revenues in 2020, and in other property income in 2019, on the accompanying consolidated statements of operations.
Miscellaneous Revenue
Columbia Property Trust also receives revenues for services provided to its tenants through the TRS Entities, including fitness centers, shuttles, and cafeterias. For the three months ended March 31, 2020 and 2019, Columbia Property Trust earned miscellaneous revenue of $7,100 and $176,500, respectively. These amounts are included in other property income on the accompanying consolidated statements of operations.

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13. Earnings Per Share
For the three months ended March 31, 2020 and 2019, in computing the basic and diluted earnings per share, net income has been reduced for the dividends paid on unvested shares granted under the LTI Plan. The following table reconciles the numerator for the basic and diluted earnings-per-share computations shown on the consolidated statements of operations for the three months ended March 31, 2020 and 2019 (in thousands):
Three Months Ended
March 31,
2020 2019
Net income attributable to common stockholders $ 6,290    $ 3,513   
Distributions paid on unvested shares (113)   (77)  
Net income attributable to common stockholders used to calculate basic and diluted earnings per share $ 6,177    $ 3,436   
The following table reconciles the denominator for the basic and diluted earnings-per-share computations shown on the consolidated statements of operations for the three months ended March 31, 2020 and 2019, respectively (in thousands):
Three Months Ended
March 31,
2020 2019
Weighted-average common shares – basic 114,471    116,462   
Plus incremental weighted-average shares from time-vested conversions, less assumed stock repurchases:
Previously granted awards, unvested 15    90   
Future period LTI Plan awards —    328   
Weighted-average common shares – diluted 114,486    116,880   

14. Segment Information
Columbia Property Trust establishes operating segments at the property level and aggregates individual properties into reportable segments for high-barrier-to-entry markets and other geographic locations in which Columbia Property Trust has significant investments. Columbia Property Trust considers geographic location when evaluating its portfolio composition and in assessing the ongoing operations and performance of its properties. As of March 31, 2020, Columbia Property Trust had the following reportable segments:  New York, San Francisco, Washington, D.C., Boston, and all other office markets. The all other office markets reportable segment consists of properties in similar low-barrier-to-entry geographic locations in which Columbia Property Trust does not have a substantial presence and does not plan to make further investments. Upon selling its remaining properties in Atlanta during 2019 and Los Angeles in March of 2020, Columbia Property Trust has combined Atlanta and the all other office markets reportable segment for all periods presented. During the periods presented, there have been no material intersegment transactions.
Net operating income ("NOI") is a non-GAAP financial measure. NOI is the primary performance measure reviewed by management to assess operating performance of properties and is calculated by deducting operating expenses from operating revenues. Operating revenues include lease revenues and other property income; and operating expenses include property operating costs. The NOI performance metric consists only of revenues and expenses directly related to real estate rental operations. NOI reflects property acquisitions and dispositions, occupancy levels, rental rate increases or decreases, and the recoverability of operating expenses. NOI, as Columbia Property Trust calculates it, may not be directly comparable to similarly titled, but differently calculated, measures for other REITs.
Asset information and capital expenditures by segment are not reported because Columbia Property Trust does not use these measures to assess performance. Depreciation and amortization expense, along with other expense and income items, are not allocated among segments.
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The following table presents operating revenues included in NOI by geographic reportable segment for Columbia Property Trust's respective ownership interests (in thousands):
Three Months Ended March 31,
2020 2019
New York(1)
$ 41,105    $ 38,696   
San Francisco(2)
34,801    27,763   
Washington, D.C.(3)
15,018    14,130   
Boston 4,149    3,674   
All other office markets 2,587    17,060   
Total office segments 97,660    101,323   
Corporate (373)   786   
Total operating revenues $ 97,287    $ 102,109   
(1)Includes operating revenues for two unconsolidated properties, based on Columbia Property Trust's ownership interests: 49.5% for 114 Fifth Avenue for all periods presented; and 8.65% for Terminal Warehouse from March 13, 2020 through March 31, 2020.
(2)Includes operating revenues for two unconsolidated properties, 333 Market Street and University Circle, based on Columbia Property Trust's ownership interests:  55.0% for all periods presented.
(3)Includes operating revenues for two unconsolidated properties, Market Square and 1800 M Street, based on Columbia Property Trust's ownership interests: 51.0% for Market Square and 55.0% for 1800 M Street for all periods presented.
A reconciliation of GAAP revenues to operating revenues is presented below (in thousands):
Three Months Ended March 31,
2020 2019
Total revenues $ 76,254    $ 75,433   
Operating revenues included in income from unconsolidated joint ventures(1)
29,273    28,545   
Less: management fee revenue(2)
(8,240)   (1,869)  
Total operating revenues $ 97,287    $ 102,109   
(1)Columbia Property Trust records its interest in properties held through unconsolidated joint ventures using the equity method of accounting, and reflects its interest in the operating revenues of these properties in income from unconsolidated joint ventures in the accompanying consolidated statements of operations.
(2)See Note 12, Non-Lease Revenues, of the accompanying consolidated financial statements.


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The following table presents NOI by geographic reportable segment (in thousands):
Three Months Ended March 31,
2020 2019
New York(1)
$ 25,075    $ 22,806   
San Francisco(2)
25,072    20,497   
Washington, D.C.(3)
9,151    8,453   
Boston 2,458    1,989   
All other office markets 1,525    13,106   
Total office segments 63,281    66,851   
Corporate (272)   (205)  
Total NOI $ 63,009    $ 66,646   
(1)Includes NOI for three unconsolidated properties, 114 Fifth Avenue and 799 Broadway, based on Columbia Property Trust's ownership interest: 49.5% for 114 Fifth Avenue for all periods presented; and 49.7% for 799 Broadway for all periods presented; and 8.65% for Terminal Warehouse from March 13, 2020 though March 31, 2020.
(2)Includes NOI for two unconsolidated properties, 333 Market Street and University Circle, based on Columbia Property Trust's ownership interests:  55.0% for all periods presented.
(3)Includes NOI for two unconsolidated properties, Market Square and 1800 M Street, based on Columbia Property Trust's ownership interests: 51.0% for the Market Square and 55.0% for 1800 M Street for all periods presented.
A reconciliation of GAAP net income to NOI is presented below (in thousands):
Three Months Ended March 31,
2020 2019
Net income attributable to common stockholders $ 6,290    $ 3,513   
Management fee revenues (8,240)   (1,869)  
Depreciation 18,330    20,404   
Amortization 6,721    7,461   
General and administrative – corporate 11,782    8,424   
Management fee expenses 6,945    —   
General and administrative – joint ventures —    809   
Acquisition costs 12,081    —   
Net interest expense 9,713    12,094   
Income tax expense (2,243)   7   
Adjustments included in income from unconsolidated joint ventures 14,903    15,803   
Gain on sale of real estate assets (13,344)   —   
Adjustments attributable to noncontrolling interests 71    —   
NOI $ 63,009    $ 66,646   

15.  Subsequent Event
The response to the COVID-19 pandemic continues to rapidly evolve, and aggressive actions taken to reduce the spread of the disease have seriously disrupted activities in large segments of the economy. Columbia Property Trust is monitoring the COVID-19 outbreak and its impact on the Company's business, tenants, and industry as a whole. While the extent to which COVID-19 impacts the Company's results will depend on future developments, the outbreak and associated economic impacts could result in a material impact to the Company's future financial condition, results of operations, and cash flows. Some effects could include lease modifications, deferral of rental income, and increased operating expenses. See Part II, Item 1A. Risk Factors, for additional information.

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ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis should be read in conjunction with our accompanying consolidated financial statements (and notes thereto) and the "Cautionary Note Regarding Forward-Looking Statements" preceding Part I of this report, as well as our consolidated financial statements (and the notes thereto) and Management's Discussion and Analysis of Financial Condition and Results of Operations included in our 2019 Form 10-K.

Executive Summary
On January 24, 2020, we acquired Normandy, a developer, operator, and investment manager of office and mixed-use assets in New York, Boston, and Washington, D.C., interests in three real estate funds and contracts to provide real estate services to properties affiliated with those funds. We believe that the acquisition of Normandy will further our strategic initiatives by strengthening our platform with additional development and redevelopment expertise, deal sourcing, and other key capabilities, and by increasing our access to capital through Normandy's investor relationships.
On March 11, 2020, the World Health Organization declared the novel strain of coronavirus (COVID-19) a global pandemic and recommended containment and mitigation measures worldwide. While response to the COVID-19 outbreak continues to rapidly evolve, it has led to aggressive actions to reduce the spread of the disease that have seriously disrupted activities in large segments of the economy, including in the regional economies where we operate. We are continuing to monitor the COVID-19 outbreak and its impact on our business, tenants, and industry as a whole.
We are committed to the health and safety of our employees, tenants, and communities. Because of our low-leverage operating model of long-term leases to creditworthy tenants, to date the COVID-19 pandemic has not materially impacted our financial condition or results of operations, our liquidity position, or caused material impairments in our portfolio of operating properties. While the impact of the COVID-19 pandemic on our business has not been severe to date, the long-term impact of the pandemic on our tenants and the global economy is uncertain and will depend on various factors, including the scope, severity, and duration of the pandemic. A prolonged economic downturn or recession resulting from the pandemic could adversely affect many of our tenants which could, in turn, adversely impact our business, financial condition, and results of operations. We have worked closely with our impacted tenants and will continue to address their concerns on a case-by-case basis, seeking arrangements that address cash flow interruptions while maintaining long-term lease obligations.
Our primary strategic objective is to generate long-term stockholder returns from a combination of growing cash flows and appreciation in the values of our properties. We own and operate high-quality office properties located in high-barrier-to-entry markets, primarily New York, San Francisco, Washington, D.C., and Boston. Our approach is to own office buildings that are competitive within the top tier of their markets or that will be repositioned as such through value-add initiatives, including development or redevelopment. Our investment objectives include optimizing our portfolio allocation between stabilized investments and more growth-oriented, value-add investments and development projects with an emphasis on central business districts and multi-tenant buildings.
Over the past several years, we have undertaken a capital recycling program that has involved selling more than 50 properties in geographically dispersed markets for aggregate proceeds of $4.5 billion, and reinvesting those proceeds in our core markets. In January 2020, we sold Cranberry Woods Drive in Pittsburgh for a gross sale price of $180.0 million; and in March 2020, we sold Pasadena Corporate Park in Los Angeles for a gross sale price of $78.0 million, which marked the exit of our last non-target market. In March 2020, we acquired an 8.65% interest in Terminal Warehouse, a 1.2-million-square-foot property located in West Chelsea, New York, that will be fully redeveloped into a mixed-use retail and office space, for an initial equity contribution of approximately $40.0 million.
As of March 31, 2020, the operating properties in our portfolio are 97.6% leased, with less than 3% of our leases scheduled to expire in 2020. During the first three months of 2020, we leased a total of 125,800 square feet of space, including a new lease for 34,800 square feet at 315 Park Avenue South in New York. We continue to maintain a strong and flexible balance sheet. As of March 31, 2020, due to borrowings on our line of credit, which are held as cash on hand at period end, our debt-to-real-estate-asset ratio is 41.8%(1), and approximately 34.9% on a net basis (i.e., reduced for cash on hand)(1). Additionally, 89%(1) of our portfolio is unencumbered by mortgages; and the weighted average cost of our consolidated and pro-rata share of joint venture borrowings during the quarter is 3.40%(1) per annum. Our debt maturities are laddered, coming due over the next six years, and $951.0 million of our unsecured borrowings can be
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repaid prior to maturity without penalty. From time to time when we believe our stock is undervalued, we may take advantage of market opportunities by using our stock repurchase program to buy shares and return capital to our stockholders. During the first quarter of 2020, we repurchased 1.2 million shares at an average price of $19.47 per share, for aggregate purchases of $23.3 million. As of March 31, 2020, $143.3 million remains available under our current repurchase program.
(1)Statistics include 100% of all of our consolidated properties and our ownership interest in the gross real estate assets and debt at properties held through unconsolidated joint ventures as described in Note 4, Unconsolidated Joint Ventures, of the accompanying financial statements.

Key Performance Indicators
Our operating results depend primarily upon the level of income generated by the leases at our properties. Occupancy and rental rates are key drivers of our lease income. Our portfolio was 97.6% leased as of March 31, 2020, and 97.1% leased as of March 31, 2019. The following table sets forth details related to the financial impact of our recent leasing activities for properties we own directly and based on our proportionate share of properties owned through unconsolidated joint ventures:
Three Months Ended March 31,
2020 2019
Total number of leases 8    13   
Square feet of leasing – renewal
17,115    3,925   
Square feet of leasing – new
102,549    63,291   
Total square feet of leasing 119,664    67,216   
Lease term (months) 162    130   
Tenant improvements, per square foot – renewal
$ 34.28    $ 102.91   
Tenant improvements, per square foot – new
$ 103.37    $ 91.72   
Tenant improvements, per square foot – all leases
$ 97.82    $ 92.01   
Leasing commissions, per square foot – renewal
$ 18.79    $ 23.53   
Leasing commissions, per square foot – new
$ 62.86    $ 69.87   
Leasing commissions, per square foot – all leases
$ 59.33    $ 68.65   
Rent leasing spread – renewal(1)
42.4  % —  %
Rent leasing spread – new(1)
9.0  % 65.8  %
Rent leasing spread – all leases(1)
16.0  % 61.7  %
(1)Rent leasing spreads are calculated based on the change in base rental income measured on a straight-line basis; and, for new leases, only include space that has been vacant for less than one year.
In the first quarter of 2020, rent leasing spreads (positive 16.0%) primarily relate to a 15,500-square-foot office lease renewal at 650 California Street in San Francisco and a new 34,800-square-foot lease at 315 Park Avenue South in New York; and current quarter tenant improvements ($97.82 per square foot) and leasing commissions ($59.33 per square foot) primarily relate to a new 59,500-square-foot lease at 80 M Street in Washington, D.C. In 2019, rent leasing spreads (positive 61.7%) and lease commissions ($68.65 per square foot) primarily relate to a new 3,500-square-foot retail lease at 315 Park Avenue South in New York, offset by other leasing across our portfolio; and current quarter tenant improvement costs for lease renewals ($102.91 per square foot) primarily relate to a 3,000-square-foot lease at Market Square, measured at our proportionate share. Over the next 12 months, approximately 104,000 square feet of leases at our operating properties (approximately 2.3% of our portfolio, based on revenues) are scheduled to expire.
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Liquidity and Capital Resources
Overview
Cash flows generated from the operation of our properties are primarily used to fund recurring expenditures and stockholder dividends. The amount of distributions to common stockholders is determined by our board of directors and is dependent upon a number of factors, including funds deemed available for distribution based principally on our current and future projected operating cash flows, reduced by capital requirements necessary to maintain our existing portfolio, our future capital needs, and future sources of liquidity, as well as the annual distribution requirements necessary to maintain our status as a REIT under the Code. Investments in new property acquisitions and first-generation capital improvements are generally funded with capital proceeds from property sales, debt, or cash on hand. Our board of directors elected to maintain a $0.21 dividend rate for the first quarter of 2020.
We are continuing to monitor the rapid developments around COVID-19 and the related impacts to our business. In response to the economic uncertainty that has unfolded as a result of COVID-19, we drew down $200.0 million on our Revolving Credit Facility in late March 2020 and held approximately $292.0 million of cash balances as of March 31, 2020. See Item IA., Risk Factors, for additional information.
Short-Term Liquidity and Capital Resources
During the first three months of 2020, we generated net cash flows from operating activities of $16.1 million, which consists primarily of receipts from tenants for rent and reimbursements, reduced by payments for operating costs, administrative expenses, interest expense, and lease inducements. During the same period, we paid total distributions to stockholders of $48.4 million, which included dividend payments for two quarters ($24.2 million for each of the fourth quarter of 2019 and first quarter of 2020). First quarter 2020 dividends ($24.2 million) exceeded cash flow from operations for the same period ($16.1 million), primarily due to acquisition costs incurred in connection with the Normandy acquisition ($12.1 million).
During the first three months of 2020, we received $250.8 million in aggregate net sales proceeds from the sale of Cranberry Woods Drive and Pasadena Corporate Park and made net borrowings on our Revolving Credit Facility of $167.0 million. These proceeds were used to fund the Terminal Warehouse Joint Venture ($40.0 million), leasing and capital projects for consolidated and unconsolidated properties ($27.2 million), and redemptions of common stock ($25.5 million). As of March 31, 2020, we had cash on hand of $292.8 million, which includes $200 million of proceeds drawn on our Revolving Credit Facility in late March 2020 in response to the increase in economic uncertainty resulting from the COVID-19 outbreak.
Over the short term, we expect our primary sources of capital and liquidity to be operating cash flows and cash on hand, and expect that our principal demands for capital will be to fund development and redevelopment costs, capital improvements to our existing portfolio, stockholder distributions, stock repurchases, operating expenses, and interest and principal payments. As of April 24, 2020, in addition to cash on hand, we have access to additional borrowings of $149.0 million under our Revolving Credit Facility. We believe that we will have adequate liquidity and capital resources to meet our current obligations as they come due.
Long-Term Liquidity and Capital Resources
Over the long term, we expect that our primary sources of capital will include operating cash flows, cash on hand, borrowing proceeds, and select property dispositions. We expect that our primary uses of capital will continue to include stockholder distributions; acquisitions; development and redevelopment costs; capital expenditures, such as building improvements, tenant improvements, and leasing costs; and repaying or refinancing debt.
Consistent with our financing objectives and operational strategy over the long term, we have generally maintained debt levels at less than 40% of the undepreciated costs of our assets; however, due to the amount of cash on hand as of March 31, 2020, our debt-to-real-estate-asset ratio was approximately 41.8% on a gross basis, and approximately 34.9% on a net basis (i.e., reduced for cash on hand). Our debt-to-real-estate-asset ratio includes our share of joint venture real estate assets and debt, as well as basis adjustments related to joint venture real estate assets.
As described below, our variable-rate indebtedness may use London Interbank Offering Rate ("LIBOR") as a benchmark for establishing the rate. LIBOR is expected to be discontinued at the end of 2021. The anticipated discontinuation of
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LIBOR will require lenders and their borrowers to transition from LIBOR to an alternative benchmark interest rate, which might increase the cost of our variable-interest debt instruments. At this time, no consensus exists as to what rate or rates may become acceptable alternatives to LIBOR, and it is impossible to predict the effect of any such alternatives on the value of LIBOR-based variable-rate loans or other financial arrangements. If LIBOR is discontinued as anticipated, or otherwise at our option, our Revolving Credit Facility and term loan facilities provide for alternate interest rate calculations.
Unsecured Bank Debt
Our Revolving Credit Facility has a capacity of $650.0 million and matures in January 2023, with two six-month extension options. As of March 31, 2020, we had $501.0 million in outstanding borrowings on the Revolving Credit Facility. Amounts outstanding under the Revolving Credit Facility bear interest at either (i) LIBOR, plus an applicable margin ranging from 0.775% to 1.45% for LIBOR borrowings, or (ii) an alternate base rate, plus an applicable margin ranging from 0.00% to 0.45% for base rate borrowings, based on our applicable credit rating. The per annum facility fee on the aggregate revolving commitment (used or unused) ranges from 0.125% to 0.30%, also based on our applicable credit rating. Additionally, the Revolving Credit Facility, along with the $300 Million Term Loan, as described below, provides for four accordion options for an aggregate additional amount of up to $500 million, subject to certain limitations.
Our $300 Million Term Loan matures in January 2024 and bears interest, at our option, at either (i) LIBOR, plus an applicable margin ranging from 0.85% to 1.65% for LIBOR loans, or (ii) an alternate base rate, plus an applicable margin ranging from 0.00% to 0.65% for base rate loans, based on our applicable credit rating. The interest rate on the $300 Million Term Loan is effectively fixed with an interest rate swap agreement, which is designated as a cash flow hedge. Based on the terms of the interest rate swap and our current credit rating, the interest rate on the $300 Million Term Loan is effectively fixed at 2.55%.
Our $150 Million Term Loan matures in July 2022 and bears interest, at our option, at either (i) LIBOR, plus an applicable margin ranging from 0.90% to 1.75% for LIBOR loans, or (ii) alternative base rate, plus an applicable margin ranging from 0.00% to 0.75% for base rate loans. The interest rate on the $150 Million Term Loan is effectively fixed with an interest rate swap agreement, which is designated as a cash flow hedge. Based on the terms of the interest rate swap and our current credit rating, the interest rate on the $150 Million Term Loan is effectively fixed at 3.07%.
Bonds Payable
We have two series of bonds outstanding as of March 31, 2020:
•$350.0 million of 10-year, unsecured 4.150% senior notes issued at 99.859% of their face value, which require semi-annual interest payments in April and October (the "2025 Bonds Payable").
•$350.0 million of 10-year, unsecured 3.650% senior notes issued at 99.626% of their face value, which require semi-annual interest payments in February and August (the "2026 Bonds Payable").
Columbia OP is the issuer of our Bonds Payable, both series of which are fully and unconditionally guaranteed by Columbia Property Trust. Columbia Property Trust owns 97.2% of Columbia OP, and includes the accounts of Columbia OP in its consolidated financial statements. The primary differences between Columbia Property Trust and Columbia OP are as follows: Columbia Property Trust owns one property directly and has made intercompany loans to subsidiaries of Columbia OP, and Columbia Property Trust – the publicly traded entity -- issues publicly traded common stock to investors (including employees), and has engaged in share repurchases from time to time. Columbia Property Trust has contributed the substantial majority of proceeds from sales of its common stock to Columbia OP.
Columbia Property Trust guarantees of Columbia OP’s obligations under the Bonds Payable include the punctual payments of principal, premium, if any, and interest on the Bonds Payable, whether at stated maturity, by declaration of acceleration, call for redemption or otherwise. The obligations of Columbia Property Trust under its guarantees is limited to the amount necessary to prevent such guarantees from constituting a fraudulent transfer or conveyance under applicable law. The Bonds Payable are Columbia OP’s senior unsecured obligations and rank equally in right of payment with all of its other existing and future senior unsecured indebtedness; Columbia Property Trust’s guarantees of the Bonds Payable are its senior unsecured obligations and rank equally in right of payment with all of Columbia Property Trust’s other existing and future senior unsecured indebtedness and guarantees.
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As a result of Columbia Property Trust’s guarantee, we are presenting the following summarized financial information (in thousands) for Columbia Property Trust and Columbia OP pursuant to Rule 13-01 of Regulation S-X, Guarantors and Issuers of Guaranteed Securities Registered or Being Registered. For purposes of the following summarized financial information, transactions between Columbia Property Trust and Columbia OP, presented on a combined basis, have been eliminated and information for non-guarantor subsidiaries has been excluded.
Balance Sheet Information:
March 31, 2020 December 31, 2019
Total assets $ 4,306,278    $ 3,991,256   
Total liabilities $ 1,773,813    $ 1,611,957   
Noncontrolling interests $ 61,716    $ 5,477   
Statement of Operations Information:
For the Three Months Ended March 31, 2020 For the Year Ended December 31, 2019
Total revenues $ 72,565    $ 260,453   
Total expenses $ 76,302    $ 268,204   
Net income $ 4,969    $ (1,052)  
Net income attributable to noncontrolling interests $ 61    $ 133   
Net income attributable to common stockholders $ 5,030    $ (919)  

Debt Covenants  
The $300 Million Term Loan, the $150 Million Term Loan, the Revolving Credit Facility, the 2026 Bonds Payable, and the 2025 Bonds Payable contain certain covenants and restrictions that require us to meet certain financial ratios. We were in compliance with all of our debt covenants as of March 31, 2020. We expect to continue to be able to meet the requirements of our debt covenants over the next 12 months.
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Contractual Commitments and Contingencies
As of March 31, 2020, our contractual obligations will become payable in the following periods (in thousands):
Contractual Obligations Total 2020 2021-2022 2023-2024 Thereafter
Debt obligations(1)
$ 1,941,548    $ 54,102    $ 220,696    $ 966,750    $ 700,000   
Interest obligations on debt(1)(2)
253,837    46,945    113,132    67,772    25,988   
Operating lease obligations(3)
1,169,994    5,356    13,976    13,432    1,137,230   
Total $ 3,365,379    $ 106,403    $ 347,804    $ 1,047,954    $ 1,863,218   
(1)Includes our ownership share of the debt and interest obligations for the Market Square Joint Venture, the Terminal Warehouse Joint Venture, and the 799 Broadway Joint Venture, which we own through unconsolidated joint ventures. The Market Square Joint Venture (51% ownership) has a $325.0 million mortgage loan on the Market Square Buildings, which bears interest at 5.07% and matures on July 1, 2023. The Terminal Warehouse Joint Venture (8.65% ownership) has a $625.5 million loan, which has a total capacity of $650.0 million, which bears interest at 5.68% and matures on October 23, 2020. The 799 Broadway Joint Venture (49.7% ownership) has $122.1 million outstanding on a construction loan, which has a total capacity of $187.0 million; bears interest at LIBOR, capped at 4.00%, plus a spread of 425 basis points; and matures on October 9, 2021. As of March 31, 2020, under the 799 Broadway construction loan agreement, we guarantee equity contributions of $14.3 million to be made to the joint venture (see Note 7, Commitments and Contingencies, of the accompanying consolidated financial statements).
(2)Interest obligations on variable-rate debt are measured at the rate at which they are effectively fixed with interest rate swap agreements (where applicable) or the rate in effect as of March 31, 2020. Interest obligations on all other debt instruments are measured at the contractual rate. See Item 3, Quantitative and Qualitative Disclosure About Market Risk, for more information regarding our interest rate swaps.
(3)These obligations are related to ground leases at certain properties, including 49.5% of the ground lease obligation at 114 Fifth Avenue, based on our ownership interest in the unconsolidated joint venture that owns that property, as well as our corporate office lease. See Note 11, Leases, of the accompanying consolidated financial statements for additional information. In addition to the amounts shown, certain lease agreements include provisions that, at the option of the tenant, may obligate us to expend capital to expand an existing property or provide other expenditures for the benefit of the tenant.

Results of Operations
Overview
As of March 31, 2020, our portfolio of 15 operating properties and four properties under development or redevelopment was approximately 97.6% leased. For the periods presented, our operating results are impacted by investing activity as set forth below. In the near term, we expect real estate operating income to vary, primarily based on investing and leasing activities.
Acquisitions
Property Location % Acquired Rentable Square Feet Transaction Date
Purchase Price(1)
(in thousands)
2020
Terminal Warehouse New York, NY 8.65  % 1,230,000 March 13, 2020 $ 40,048   
2019
201 California Street San Francisco, CA 100.0  % 252,000 December 9, 2019 $ 238,900   
101 Franklin Street New York, NY 92.5  % 235,000 December 2, 2019 $ 205,500   
(2)
(1)Exclusive of transaction costs and purchase price adjustments.
(2)Purchase price is for our partial interests in the property, which is owned through an unconsolidated joint venture. Please refer to Note 3, Transactions, and Note 4, Unconsolidated Joint Ventures, of the accompanying consolidated financial statements for more information.
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Dispositions
Property Location % Sold Rentable Square Feet Transaction Date
Sales Price(1)
(in thousands)
2020
Pasadena Corporate Park Los Angeles, CA 100.0  % 262,000    March 31, 2020 $ 78,000   
Cranberry Woods Drive Pittsburgh, PA 100.0  % 824,000    January 16, 2020 $ 180,000   
2019
Lindbergh Center Atlanta, GA 100.0  % 1,105,000    September 26, 2019 $ 187,000   
One & Three Glenlake Parkway Atlanta, GA 100.0  % 711,000    April 15, 2019 $ 227,500   
(1)Exclusive of transaction costs and purchase price adjustments.

Comparison of the Three Months Ended March 31, 2020 With the Three Months Ended March 31, 2019
Lease revenues were $68.0 million for the three months ended March 31, 2020, which represents a slight decrease as compared with $71.9 million for the three months ended March 31, 2019, as the impact of dispositions ($14.3 million) is partially offset by the acquisition of 201 California Street ($5.5 million) and additional revenues from recent leasing ($4.6 million). We expect future lease revenues to vary based on recent and future investing and leasing activities.
Management fee revenues were $8.2 million for the three months ended March 31, 2020, which represents an increase as compared with $1.9 million for the three months ended March 31, 2019, due to the Normandy Acquisition. In connection with the Normandy Acquisition, we acquired contracts to provide management services to properties affiliated with the Real Estate Funds. Management fee revenues include $3.1 million of reimbursements of salaries and third-party costs recorded as management fee expense. Management fee revenue is expected to remain at a similar level in the near term.
Other property income was $7,000 for the three months ended March 31, 2020, which represents a decrease as compared with $1.7 million for the three months ended March 31, 2019, primarily due to moving reimbursements for management fee administration costs to management fee revenues beginning in the first quarter of 2020 ($1.1 million recognized in 2019) and moving lease termination fees to lease revenues beginning in the second quarter of 2019 ($0.4 million recognized in 2019). Other property operating income is expected to remain at similar levels in the near term.
Property operating costs were $22.7 million for the three months ended March 31, 2020, which represents a decrease as compared with $24.5 million for the three months ended March 31, 2019, as the impact of recent dispositions ($2.6 million) and moving expenses for reimbursed management fee administration costs to management fee expenses beginning in the first quarter of 2020 ($1.1 million), are offset by the acquisition of 201 California Street ($2.0 million). Property operating costs are expected to vary based on recent and future investing and leasing activities.
Depreciation was $18.3 million for the three months ended March 31, 2020, which represents a decrease as compared with $20.4 million for the three months ended March 31, 2019, as the impact of recent dispositions ($5.2 million) was offset by the acquisition of 201 California Street ($1.6 million) and putting various capital projects into service ($1.4 million). Depreciation is expected to vary based on recent and future investing activities and capital projects.
Amortization was $6.7 million for the three months ended March 31, 2020, which represents a decrease as compared with $7.5 million for the three months ended March 31, 2019, primarily as the impact of recent dispositions ($2.0 million) and lease restructurings ($0.2 million) are offset by the acquisition of 201 California Street ($1.6 million). We expect future amortization to vary, based on recent and future investing and leasing activities.
General and administrative – corporate expenses were $11.8 million for the three months ended March 31, 2020, which represents an increase as compared with $8.4 million for the three months ended March 31, 2019, primarily due to the Normandy Acquisition: $2.4 million related to vesting of the Preferred OP Units issued as consideration for the transaction, and $1.2 million related to increased payroll costs. General and administrative – corporate expenses are expected to remain at similar levels in the near term.
Management fee expense of $6.9 million for the three months ended March 31, 2020, reflects salaries and third-party costs incurred to earn management fee revenues by providing management services to properties owned by
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unconsolidated joint ventures and affiliated with the Real Estate Funds. Future management fee expenses are expected to vary as a result of future investing activities.
General and administrative – joint venture expenses were $0.8 million for the three months ended March 31, 2019. These expenses represent costs incurred to manage assets owned by our unconsolidated joint ventures. Effective January 1, 2020, such costs are included in management fee expense on the accompanying consolidated statements of operations.
For the three months ended March 31, 2020, we recognized acquisition costs of $12.1 million related to the Normandy Acquisition. These costs include legal, advisory, and other professional services fees related to the acquisition. Future levels of acquisition costs will vary based on future transaction activities.
Interest expense was $9.6 million for the three months ended March 31, 2020, which represents a decrease as compared with $12.1 million for the three months ended March 31, 2019. The decrease results from borrowings on our term loans, rather than our Revolving Credit Facility, in the current year ($0.8 million) and interest capitalization ($1.8 million). We expect interest expense to increase in the near term due to increased borrowings on our Revolving Credit Facility.
Interest and other income (expense) was $(158,000) for the three months ended March 31, 2020, which represents a decrease as compared with $1,000 for the three months ended March 31, 2019. The current period amount includes a market value adjustment to the investment in Real Estate Funds (see Note 2, Summary of Significant Accounting Policies, to the accompanying financial statements). Interest and other income is expected to vary primarily based on future Real Estate Fund valuations.
Income tax benefit was $2.2 million for the three months ended March 31, 2020, as a result of the acquisition expenses, which are incurred by our TRS Entities. We expect income tax benefit to decrease in relation to acquisition expenses in future periods.
Income from the unconsolidated joint ventures was $2.7 million for the three months ended March 31, 2020, which represents an increase as compared with $1.8 million for the three months ended March 31, 2019, primarily due to a prior-period lease termination at 799 Broadway, which resulted in the write off of intangible assets. We expect income from the unconsolidated joint ventures to vary based on future joint venture investing activities and leasing activity at the properties owned through unconsolidated joint ventures.
We recognized a gain on sale of real estate assets of $13.3 million for the three months ended March 31, 2020, for the sale of Cranberry Woods Drive. See Note 3, Transactions, of the accompanying consolidated financial statements for additional details. We expect future gains on sales of real estate assets to vary with disposition activity.
Net income attributable to common stockholders was $6.3 million, or $0.05 per basic and diluted share, for the three months ended March 31, 2020, which represents an increase as compared with a net income of $3.5 million, or $0.03 per basic and diluted share, for the three months ended March 31, 2019. The increase is primarily driven by the current-period gain on sale of real estate ($13.3 million), offset by acquisition costs related to the Normandy Acquisition, net of the corresponding tax benefits ($9.5 million). See Supplemental Performance Measures below for our same-store results compared with the prior year. We expect future earnings to vary, primarily as a result of leasing activity at our existing properties and future investing activity.

NOI by Geographic Segment
We consider geographic location when evaluating our portfolio composition and in assessing the ongoing operations and performance of our properties. As of March 31, 2020, we aggregated our properties into the following geographic segments: New York, San Francisco, Washington, D.C., Boston, and all other office markets. All other office markets consists of properties in low-barrier-to-entry geographic locations in which we do not have a substantial presence and do not plan to make further investments. NOI, as presented below, includes our share of properties owned through unconsolidated joint ventures. See Note 14, Segment Information, of the accompanying consolidated financial statements for additional information and a reconciliation from GAAP net income to NOI.
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The following table presents NOI by geographic segment (in thousands):
Three Months Ended March 31,
2020 2019
New York(1)
$ 25,075    $ 22,806   
San Francisco(2)
25,072    20,497   
Washington, D.C.(3)
9,151    8,453   
Boston 2,458    1,989   
All other office markets 1,525    13,106   
Total office segments 63,281    66,851   
Corporate (272)   (205)  
Total NOI $ 63,009    $ 66,646   
(1)Includes NOI for three unconsolidated properties, based on our ownership interests: 49.5% for 114 Fifth Avenue, 49.7% for 799 Broadway, and 8.65% for Terminal Warehouse from March 13, 2020 through March 31, 2020.
(2)Includes NOI for two unconsolidated properties, based on our ownership interests: 55.0% for 333 Market Street and University Circle
(3)Includes NOI for two unconsolidated properties, based on our ownership interests: 51.0% for the Market Square and 55.0% for 1800 M Street.
New York
NOI increased across the New York market as a result of leasing (economic occupancy increased from 91.1% at March 31, 2019 to 96.7% at March 31, 2020).
San Francisco
NOI increased as a result of the December 2019 acquisition of 201 California Street.
Washington, D.C.
NOI increased a result of leasing across our Washington, D.C. portfolio (economic occupancy increased from 80.8% at March 31, 2019 to 89.2% at March 31, 2020).
Boston
NOI increased due to new leases at increase rental rates commencing at 116 Huntington Avenue.
All other office markets
NOI decreased as a result of the 2019 sales of Lindbergh Center and One & Three Glenlake in Atlanta and the January 2020 sale of Cranberry Woods Drive in Pittsburgh.

Supplemental Performance Measures
In addition to net income, we measure our performance using certain non-GAAP metrics, including: (i) Funds From Operations ("FFO"), (ii) Net Operating Income ("NOI"), and (iii) Same Store Net Operating Income ("Same Store NOI"). These supplemental performance measures are commonly used by REIT industry analysts and investors, and are viewed by management to be useful indicators of operating performance principally because they exclude the effects of certain income and expenses that do not reflect the cash-generating capability of our operations. Management believes that the use of FFO, NOI, and Same Store NOI, combined with net income, improves the understanding of operating results of REITs among the investing public and makes comparisons of REIT operating results more meaningful.
Net income is the most comparable GAAP measure to FFO, NOI, and Same Store NOI. Each of these supplemental performance measures excludes expenses that materially impact our overall results of operations and, therefore, should not be considered as a substitute for net income, or any other measures derived in accordance with GAAP. Furthermore, these metrics may not be comparable to other similarly titled measures used by other companies.
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Funds From Operations
FFO is a non-GAAP measure used by many investors and analysts who follow the real estate industry to measure the performance of an equity REIT. We consider FFO a useful measure of our performance, principally because it excludes the effects of depreciation and amortization of real estate assets. GAAP depreciation and amortization reflect a systematic reduction in the carrying value of real estate assets and, therefore, are not indicative of the actual increase or decrease in the realizable value of real estate assets. We believe that the use of FFO, combined with the required GAAP presentations, is beneficial in improving our investors' understanding of our operating results and allowing for comparisons among other companies who define FFO as we do.
FFO, as defined by the National Association of Real Estate Investment Trusts ("NAREIT"), represents net income (computed in accordance with GAAP), excluding gains or losses on sales of real estate and impairments of real estate assets, and real estate-related depreciation and amortization, after adjustments for unconsolidated partnerships and joint ventures, for both continuing and discontinued operations. We compute FFO in accordance with NAREIT's definition, which may differ from the methodology for calculating FFO, or similarly titled measures, used by other companies, and thus may not be comparable to those presentations.
FFO is not reduced for the amounts needed to fund capital replacements or expansions, debt service obligations, or other commitments and uncertainties, nor is it indicative of funds available to fund our cash needs, including our ability to make distributions. Our presentation of FFO should not be considered as an alternative to net income (computed in accordance with GAAP) or as an indicator of financial performance.
GAAP net income reconciles to FFO as follows (in thousands):
Three Months Ended
March 31,
2020 2019
Net income attributable to common stockholders $ 6,290    $ 3,513   
Adjustments:
Depreciation of real estate assets 18,330    20,404   
Amortization of lease-related costs 6,721    7,461   
Depreciation and amortization included in income from unconsolidated joint ventures(1)
12,797    12,928   
Gain on sale of real estate assets (13,344)   —   
NAREIT FFO available to common stockholders $ 30,794    $ 44,306   
(1)Reflects depreciation and amortization for investments in unconsolidated joint ventures multiplied by our respective ownership interests.
The following significant noncash revenues and expenses are included in our funds from operations:
•Straight-line rental income, net:  to recognize rent on a straight-line basis over the lease term, we recognized net straight-line rental income for our wholly owned properties of $3.3 million and $4.5 million for the three months ended March 31, 2020 and 2019, respectively. Income from unconsolidated joint ventures includes additional net straight-line rental income of $0.4 million and $(0.2) million for the three months ended March 31, 2020 and 2019, respectively. 
•Amortization of intangible lease assets and liabilities:  to amortize above- and below-market, in-place lease intangible assets (liabilities), we recognized net increases to rental revenues (or decreases to operating expenses) for our wholly owned properties of $1.4 million and $1.0 million for the three months ended March 31, 2020 and 2019, respectively. Income from unconsolidated joint ventures includes additional net operating income for amortization of intangible lease assets and liabilities of $2.5 million for both the three months ended March 31, 2020 and 2019.
•Amortization of deferred financing costs and debt premiums (discounts):  to amortize costs associated with securing debt from third-party lenders over the terms of the respective debt facilities, we recognized noncash interest expense of $0.6 million for the three months ended March 31, 2020 and 2019. Income from unconsolidated joint ventures includes additional noncash interest expense of $0.4 million for both the three months ended March 31, 2020 and 2019.
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Net Operating Income
As set forth below, NOI is calculated by deducting property operating costs from rental and other property revenues for continuing operations. As a performance metric consisting of only revenues and expenses directly related to ongoing real estate rental operations, which have been or will be settled in cash, NOI is narrower in scope than FFO.
NOI, as we calculate it, may not be directly comparable to similarly titled, but differently calculated, measures for other REITs. We believe that NOI is another useful supplemental performance measure, as it is an input in many REIT valuation models, and it provides a means by which to evaluate the performance of the properties.
The major factors influencing our NOI are property acquisitions and dispositions, occupancy levels, rental rate increases or decreases, and the recoverability of operating expenses.
Same Store Net Operating Income
We also evaluate the performance of our properties, on a "same-store" basis, using a metric referred to as Same Store NOI. We view Same Store NOI as a useful supplemental performance measure because it improves comparability between periods by eliminating the effects of changes in our operating portfolio. On an individual property basis, Same Store NOI is computed in the same manner as NOI (as described in the preceding section).
For the three months ended March 31, 2020, we have defined our same-store portfolio as those properties that have been continuously owned and operated since January 1, 2019 (the first day of the first quarterly period presented). NOI and Same Store NOI are calculated as follows for the three months ended March 31, 2020 and 2019 (in thousands):
Three Months Ended March 31,
2020 2019
Same Store NOI – Wholly Owned Properties:
Revenues:
Lease revenues $ 59,884    $ 54,967   
Other property income 7    1,537   
Total revenues 59,891    56,504   
Property operating expenses (19,593)   (20,538)  
Same Store NOI – wholly owned properties(1)
40,298    35,966   
Same Store NOI – joint venture-owned properties(2)
17,573    17,719   
Same Store NOI 57,871    53,685   
NOI from acquisitions(3)
3,612    (145)  
NOI from dispositions(4)
1,526    13,106   
NOI $ 63,009    $ 66,646   
(1)Reflects NOI from properties that were wholly owned for the entirety of the periods presented.
(2)Reflects NOI earned from properties owned through unconsolidated joint ventures based on our ownership interest as of March 31, 2020, for the entirety of the periods presented. The NOI for properties held through unconsolidated joint ventures is included in income from unconsolidated joint ventures in our accompanying consolidated statements of operations. See Note 4, Unconsolidated Joint Ventures, of the accompanying consolidated financial statements, for more information.
(3)Reflects activity for the following property acquired since January 1, 2019: 8.65% of Terminal Warehouse, acquired on March 13, 2020; 201 California Street, acquired on December 9, 2019; and 101 Franklin Street, acquired on December 2, 2019.
(4)Reflects activity for the following properties sold since January 1, 2019, for all periods presented: Pasadena Corporate Park, sold on March 31, 2020; Cranberry Woods Drive, sold on January 16, 2020; Lindbergh Center, sold on September 26, 2019; One & Three Glenlake Parkway, sold on April 15, 2019.



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Reconciliation
A reconciliation of GAAP net income to NOI and Same Store NOI is presented below (in thousands):
Three Months Ended March 31,
2020 2019
Net income attributable to common stockholders $ 6,290    $ 3,513   
Management fee revenues (8,240)   (1,869)  
Depreciation 18,330    20,404   
Amortization 6,721    7,461   
General and administrative – corporate 11,782    8,424   
Management fee expenses 6,945    —   
General and administrative – unconsolidated joint ventures —    809   
Acquisition costs 12,081    —   
Net interest expense 9,713    12,094   
Income tax expense (2,243)   7   
Adjustments included in income from unconsolidated joint ventures 14,903    15,803   
Gain on sale of real estate assets (13,344)   —   
Adjustments attributable to noncontrolling interests 71    —   
NOI: $ 63,009    $ 66,646   
Same Store NOI – joint venture owned properties(1)
(17,573)   (17,719)  
NOI from acquisitions(2)
(3,612)   145   
NOI from dispositions(3)
(1,526)   (13,106)  
Same Store NOI – wholly owned properties(4)
$ 40,298    $ 35,966   
(1)Reflects NOI earned from properties owned through unconsolidated joint ventures based on our ownership interest as of March 31, 2020, for the entirety of the periods presented. The NOI for properties held through unconsolidated joint ventures is included in income from unconsolidated joint ventures in our accompanying consolidated statements of operations.
(2)Reflects activity for the following properties acquired since January 1, 2019: 8.65% of Terminal Warehouse, acquired on March 13, 2020, 201 California Street, acquired on December 9, 2019; and 101 Franklin Street, acquired on December 2, 2019.
(3)Reflects activity for the following properties sold since January 1, 2019, for all periods presented: Pasadena Corporate Park, sold on March 31, 2020; Cranberry Woods Drive, sold on January 16, 2020; Lindbergh Center, sold on September 26, 2019; One & Three Glenlake Parkway, sold on April 15, 2019.
(4)Reflects NOI from properties that were wholly owned for the entirety of the periods presented.

Election as a REIT
We have elected to be taxed as a REIT under the Code and have operated as such beginning with our taxable year ended December 31, 2003. To qualify as a REIT, we must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of our adjusted taxable income, as defined in the Code, to our stockholders. To the extent that we satisfy the distribution requirement but distribute less than 100% of our REIT taxable income, we would be subject to federal and state corporate income tax on the undistributed income. If we fail to qualify as a REIT in any taxable year, we will then be subject to federal income taxes on our taxable income for that year and for the four years following the year during which qualification is lost, unless the Internal Revenue Service grants us relief under certain statutory provisions. Such an event could materially affect our net income and net cash available for distribution to our stockholders. However, we believe that we are organized and operate in such a manner as to qualify for treatment as a REIT for federal income tax purposes.
The TRS Entities are wholly owned subsidiaries of Columbia Property Trust and are organized as Delaware limited liability companies. The TRS Entities, among other things, provide services related to asset and property management, construction and development, and other tenant services that Columbia Property Trust, as a REIT, cannot otherwise provide. We have elected to treat the TRS Entities as taxable REIT subsidiaries. We may perform certain additional, noncustomary services for tenants of our buildings through the TRS Entities; however, any earnings related to such
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services are subject to federal and state income taxes. In addition, for us to continue to qualify as a REIT, we must limit our investments in taxable REIT subsidiaries to 20% of the value of our total assets. Deferred tax assets and liabilities are established for temporary differences between the financial reporting basis and the tax basis of assets and liabilities at the enacted rates expected to be in effect when the temporary differences reverse.
No provisions for federal income taxes have been made in our accompanying consolidated financial statements, other than the provisions relating to the TRS Entities, as we made distributions in excess of or equal to taxable income for the periods presented. We are subject to certain state and local taxes related to property operations in certain locations, which have been provided for in our accompanying consolidated financial statements.

Inflation
We are exposed to inflation risk, as income from long-term leases is the primary source of our cash flows from operations. There are provisions in the majority of our tenant leases that are intended to protect us from, and mitigate the risk of, the impact of inflation. These provisions include rent steps, reimbursement billings for operating expense pass-through charges, real estate tax, and insurance reimbursements on a per-square-foot basis or, in some cases, annual reimbursement of operating expenses above a certain per-square-foot allowance. However, due to the long-term nature of the leases, the leases may not reset frequently enough to fully cover inflation.

Application of Critical Accounting Policies
There have been no material changes in our critical accounting policies from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2019. As described in Note 2, Summary of Significant Accounting Policies, to the accompanying consolidated financial statements, we adopted ASC 842 during the quarter ended March 31, 2019.

Commitments and Contingencies
We are subject to certain commitments and contingencies with regard to certain transactions. Refer to Note 7, Commitments and Contingencies, of our accompanying consolidated financial statements for further explanation. Examples of such commitments and contingencies include:
•guaranties related to our unconsolidated joint ventures;
•commitments to contribute capital to the Real Estate Funds;
•obligations under operating leases;
•obligations under capital leases;
•commitments under existing lease agreements; and
•litigation.

Subsequent Event
The response to the COVID-19 pandemic continues to rapidly evolve, and aggressive actions taken to reduce the spread of the disease have seriously disrupted activities in large segments of the economy. We are monitoring the COVID-19 outbreak and its impact on our business, tenants, and industry as a whole. While the extent to which COVID-19 impacts our results will depend on future developments, the outbreak and associated economic impacts could result in a material impact to the Company’s future financial condition, results of operations, and cash flows. Some effects could include lease modifications, deferral of rental income, and increased operating expenses. See Part II, Item 1A. Risk Factors, for additional information.
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ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
As a result of certain of our outstanding debt facilities, we are exposed to interest rate changes. Our interest rate risk management objectives are to limit the impact of interest rate changes on earnings and cash flow, primarily through a low to moderate level of overall borrowings. We manage our ratio of fixed- to floating-rate debt with the objective of achieving a mix that we believe is appropriate in light of anticipated changes. We closely monitor interest rates and will continue to consider the sources and terms of our borrowing facilities to determine whether we have appropriately guarded ourselves against the risk of increasing interest rates in future periods. Fluctuations in LIBOR may affect the amount of interest expense we incur on borrowings indexed to LIBOR, such as borrowings under the Revolving Credit Facility, which bears interest at the applicable LIBOR rate, as defined in the credit agreements, plus an applicable margin that is subject to adjustment based on our credit ratings.
Additionally, we have entered into interest rate swaps and may enter into other interest rate swaps, caps, or other arrangements to mitigate our interest rate risk on a related financial instrument. We do not currently enter into derivative or interest rate transactions for speculative purposes; however, at times certain of our derivatives may not qualify for hedge accounting treatment. All of our debt was entered into for other-than-trading purposes.
Our financial instruments consist of both fixed-rate and variable-rate debt. Our variable-rate borrowings consist of the Revolving Credit Facility, the $300 Million Term Loan, and the $150 Million Term Loan. However, as of March 31, 2020, only borrowings under the Revolving Credit Facility bear interest at effectively variable rates, as the variable rate on the $150 Million Term Loan and $300 Million Term Loan have been effectively fixed through the interest rate swap agreement described in the "Liquidity and Capital Resources" section of Item 2, Management's Discussion and Analysis of Financial Condition and Results of Operations.
As of March 31, 2020, we had $501.0 million in outstanding borrowings under the Revolving Credit Facility; $300 million in outstanding borrowings on the $300 Million Term Loan; $150.0 million outstanding on the $150 Million Term Loan; $349.8 million in 2025 Bonds Payable outstanding; and $349.2 million in 2026 Bonds Payable outstanding. The amounts outstanding on our Revolving Credit Facility in the future will largely depend upon future acquisition and disposition activity. The weighted-average interest rate of all our consolidated debt instruments was 2.90% as of March 31, 2020.
Approximately $1,014.7 million of total debt outstanding as of March 31, 2020, is subject to fixed rates, either directly or when coupled with an interest rate swap agreement. As of March 31, 2020, these balances incurred interest expense at an average interest rate of 3.97% and have expirations ranging from 2022 through 2026. A change in the market interest rate impacts the net financial instrument position of our fixed-rate debt portfolio; however, it has no impact on interest incurred or cash flows.
Approximately $615.8 million of total debt outstanding as of March 31, 2020, is subject to variable rates. As of March 31, 2020, these balances incurred interest expense at an average interest rate of 2.61% and have expirations ranging from 2020 through 2023. An increase or decrease of 100 basis points would have a $6.2 million annual impact on our interest payments.
Our unconsolidated borrowings consist of a fixed-rate mortgage note, a variable-rate construction note, and a variable-rate acquisition note. The Market Square Joint Venture holds a $325 million mortgage note, which bears interest at a fixed rate of 5.07%; the 799 Broadway Joint Venture holds a $122.1 million construction note, which bears interest at a floating rate of 5.26%; and the Terminal Warehouse Joint Venture holds a $625.5 million note, which bears interest at a floating rate of 5.68% as of March 31, 2020. Our weighted-average interest rate of debt, including all consolidated borrowings and our ownership share of debt held by the aforementioned unconsolidated joint ventures, was is 3.24% at March 31, 2020.


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ITEM 4.  CONTROLS AND PROCEDURES
Management's Conclusions Regarding the Effectiveness of Disclosure Controls and Procedures
We carried out an evaluation, under the supervision and with the participation of management, including the Principal Executive Officer and Principal Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rule 13a-15(e) under the Securities Exchange Act of 1934 as of the end of the period covered by this report. Based upon that evaluation, the Principal Executive Officer and Principal Financial Officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report in providing a reasonable level of assurance that information we are required to disclose in reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized, and reported within the time periods in SEC rules and forms, including providing a reasonable level of assurance that information required to be disclosed by us in such reports is accumulated and communicated to our management, including our Principal Executive Officer and our Principal Financial Officer, as appropriate to allow timely decisions regarding required disclosure.
Changes in Internal Control Over Financial Reporting
There have been no changes in our internal control over financial reporting during the quarter ended March 31, 2020, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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PART II.  OTHER INFORMATION

ITEM 1.LEGAL PROCEEDINGS
From time to time, we are party to legal proceedings which arise in the ordinary course of our business. We are not currently involved in any legal proceedings of which the outcome is reasonably likely to have a material adverse effect on our results of operations, liquidity, or financial condition, nor are we aware of any such legal proceedings contemplated by governmental authorities.

ITEM 1A.RISK FACTORS
The following additional risk factor updates the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2019:
Our business has been, and will continue to be, adversely affected by the COVID-19 pandemic.
On March 11, 2020, the World Health Organization announced that the outbreak of the novel coronavirus (COVID-19) had become a pandemic. Federal, state, and local authorities and health officials have implemented aggressive actions to reduce the spread of the disease, including limiting non-essential gatherings of people, ceasing all non-essential travel, and issuing "social or physical distancing" guidelines, "shelter-in-place" orders, and mandatory closures for non-essential businesses. The COVID-19 outbreak and the measures put in place to address it have negatively impacted the global economy, disrupted consumer spending and global supply chains, and created significant volatility and disruption of financial markets.
The extent of the impact of the COVID-19 pandemic on our business is highly uncertain and difficult to predict, as information is rapidly evolving with respect to the duration and severity of the pandemic. The extent to which the COVID-19 pandemic ultimately impacts our business, results of operations, financial condition, and stock price will depend on numerous evolving factors, including: the duration and scope of the pandemic; governmental, business, and individuals' actions taken in response to the pandemic; the impact on economic activity from the pandemic and actions taken in response; the effect on our tenants and their businesses; the ability of tenants to pay their rental income and any closures of our tenants' facilities, including, without limitation, due to shutdowns and "shelter-in-place" orders that may be requested or mandated by governmental authorities; the effect of the pandemic on our construction, development, and redevelopment activities; and the impact on our employees and any other operational disruptions or difficulties we may face. Any of these factors and risks could materially adversely impact our business, financial condition, results of operations, or stock price.
In addition to the general economic impact of the pandemic, if an outbreak of COVID-19 occurs within the workforce of our tenants or otherwise disrupts their management and other personnel, the business and operating results of our tenants could be negatively impacted. Large-scale "social or physical distancing" guidelines, "shelter-in-place" orders, and mandatory closures could cause our retail and restaurant tenants to close for an extended period of time. The negative impact upon our tenants may include an immediate reduction in cash flow available to pay rent under our leases, and although various governmental financial programs may mitigate this, governmental assistance may not be available to all affected tenants or may be significantly delayed. In turn, our tenants' inability to pay rent under our leases could adversely affect our own liquidity, and there can be no guarantee that additional liquidity will be readily available or available on favorable terms in the future. For example, in response to the economic uncertainty that has unfolded as a result of COVID-19, we drew down $200.0 million on our Line of Credit in March 2020 and may need to rely on our lines of credit again in the future, depending on the severity of the pandemic.
Large-scale executive orders and other measures taken to curb the spread of COVID-19 may also negatively impact the ability of our properties to continue to obtain necessary goods and services or provide adequate staffing, which may also adversely affect our operating results and reputation. Such orders could also impact our ability to commence or continue construction, development, and redevelopment activities, which could result in delays, increased costs, and potentially missed deadlines. Any increased costs or lost revenue as a result of tenant financial difficulty, or their need to comply with executive orders and other guidance from the Centers for Disease Control and Prevention, may not be fully recoverable under our leases or adequately covered by insurance, which could impact our profitability. In addition to the potential consequences listed above, these same factors may cause prospective tenants to delay their leasing decisions
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or to lease less space. Even after the pandemic has ceased to be active, the prevalence of work-from-home policies during the pandemic may alter tenant preferences in the long term with respect to the demand for leasing office space.

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
(a)During the quarter ended March 31, 2020, we did not sell any equity securities that were not registered under the Securities Act of 1933.
(b)Not applicable.
(c)On August 13, 2019, our board of directors extended the authority for stock repurchases and approved the 2019 Stock Repurchase Program, which provides for Columbia Property Trust to buy up to $200 million of our common stock over a two-year period, expiring on September 4, 2021.
During the quarter ended March 31, 2020, we repurchased and retired the following shares in accordance with the 2019 Stock Repurchase Program:
Period Total Number
of Shares
Purchased 		Average
 Price Paid 
per Share 		Total Number of Shares Purchased as Part of Publicly Announced Plan
Maximum Approximate Dollar Value Available for Future Purchase(1)
January 2020 374,748    $ 20.67    374,748    $ 158,786,537   
February 2020 13,436    $ 21.00    13,436    $ 158,486,381   
March 2020 805,999    $ 18.89    805,999    $ 143,263,625   
(1)Amounts available for future purchase relate only to our 2019 Stock Repurchase Program and represent the remainder of the $200 million authorized by our board of directors for share repurchases.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES
(a)There have been no defaults with respect to any of our indebtedness.
(b)Not applicable.

ITEM 4.  MINE SAFETY DISCLOSURES
Not applicable.

ITEM 5.  OTHER INFORMATION
(a)During the first quarter of 2020, there was no information that was required to be disclosed in a report on Form 8-K that was not disclosed in a report on Form 8-K.
(b)There are no material changes to the procedures by which stockholders may recommend nominees to our board of directors since the filing of our most recent Schedule 14A.
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ITEM 6.  EXHIBITS
(a)Exhibits
EXHIBIT INDEX TO
FIRST QUARTER 2020 FORM 10-Q OF
COLUMBIA PROPERTY TRUST, INC.
The following documents are filed as exhibits to this report. Exhibits that are not required for this report are omitted. 
Ex. Description
3.1   
3.2   
3.3   
3.4   
4.1   
4.2
4.3
4.4
4.5
4.6
4.7
10.1
22.1*
31.1*
31.2*
32.1*
101.INS*
Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH* Inline XBRL Taxonomy Extension Schema.
101.CAL* Inline XBRL Taxonomy Extension Calculation Linkbase.
101.DEF* Inline XBRL Taxonomy Extension Definition Linkbase.
101.LAB* Inline XBRL Taxonomy Extension Label Linkbase.
101.PRE*    Inline XBRL Taxonomy Extension Presentation Linkbase.
104    Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).
*    Filed herewith.

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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
 
COLUMBIA PROPERTY TRUST, INC.
(Registrant)
Dated: April 30, 2020 By: /s/ JAMES A. FLEMING
James A. Fleming
Executive Vice President and Chief Financial Officer


51

Exhibit 22.1

Subsidiary Issuer of Guaranteed Securities

Columbia Property Trust Operating Partnership, L.P. (“Columbia OP”), a subsidiary of the registrant, Columbia Property Trust, Inc., is the issuer of (i) $350 million aggregate principal amount of 4.150% Senior Notes due 2025, and (ii) $350 million aggregate principal amount of 3.650% Senior Notes due 2026 (collectively, the “Senior Notes”). The Senior Notes are fully and unconditionally guaranteed by the registrant, which owns 97.2% of Columbia OP, includes the accounts of Columbia OP in its consolidated financial statements, and conducts substantially all of its business through Columbia OP, either directly or through subsidiaries.



EXHIBIT 31.1
PRINCIPAL EXECUTIVE OFFICER
CERTIFICATION
PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
(18 U.S.C. 1350)
I, E. Nelson Mills, certify that:
 
1.I have reviewed this quarterly report on Form 10-Q of Columbia Property Trust, Inc. for the quarter ended March 31, 2020;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
 
Dated: April 30, 2020 By: /s/ E. Nelson Mills
E. Nelson Mills
Principal Executive Officer



EXHIBIT 31.2
PRINCIPAL FINANCIAL OFFICER
CERTIFICATION
PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
(18 U.S.C. 1350)
I, James A. Fleming, certify that:
 
1.I have reviewed this quarterly report on Form 10-Q of Columbia Property Trust, Inc. for the quarter ended March 31, 2020;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
 
Dated: April 30, 2020 By: /s/ James A. Fleming
James A. Fleming
Principal Financial Officer



EXHIBIT 32.1
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
AND PRINCIPAL FINANCIAL OFFICER
PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
(18 U.S.C. 1350)
In connection with the Quarterly Report of Columbia Property Trust, Inc. (the "Registrant") on Form 10-Q for the quarter ended March 31, 2020, as filed with the Securities and Exchange Commission (the "Report"), the undersigned, E. Nelson Mills, Principal Executive Officer of the Registrant, and James A. Fleming, Principal Financial Officer of the Registrant, hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350) that, to the best of our knowledge and belief:
 
(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and
(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

/s/ E. NELSON MILLS
E. Nelson Mills
Principal Executive Officer
April 30, 2020
/s/ JAMES A. FLEMING
James A. Fleming
Principal Financial Officer
April 30, 2020