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Columbia Property Trust, Inc. (CXP) SEC Filing 10-Q Quarterly Report for the period ending Wednesday, June 30, 2021

Columbia Property Trust, Inc.

CIK: 1252849 Ticker: CXP
Exhibit 99.1

columbia_72ppixrgb1a.jpg

Columbia Property Trust Releases First Quarter 2021 Results

NEW YORK (April 29, 2021) –
Columbia Property Trust, Inc. (NYSE: CXP) has released its quarterly update and financial results for the quarterly period ending March 31, 2021, by posting its First Quarter Form 10-Q and Supplemental Information package to the Investor Relations section of its website.

Full results and additional information on the recent highlights summarized below can be found in the Supplemental Information package:
Announces first quarter results, including Net Income per share and Normalized FFO per share;
Portfolio 94.0% leased, with 69,000 square feet leased during the quarter at double-digit positive GAAP and cash rent releasing spreads;
Total rent collections stood at 97.6% for the first quarter, with deferral agreements executed on another 0.2%; and
On April 8, 2021, announced that the Board has commenced a thorough review of the Company's business, strategies, and positioning, including undertaking a comprehensive strategic alternatives review process that will include outreach to, and identification of, potential transaction counterparties, and related to which the Company incurred $2.4 million in strategic review costs in the first quarter. There is no deadline or definitive timetable set for completion of this review, and there is no assurance that this process will result in any transaction, including a sale of the Company, privatization, or entry into a business combination.

Direct link to the Supplemental Information Package:
https://ir.columbia.reit/files/doc_financials/2021/q1/CXP-FSP-Q1-2021-FINAL.pdf

To access the Form 10-Q, please visit: https://ir.columbia.reit/financials/sec-filings/

As previously announced, the Company will host a live conference call and audio webcast later today at 5:00 p.m. ET. The number to call to participate in the interactive teleconference is (825) 312-2053 (U.S. and international) – (Conference ID: 7877257). To access the live webcast, interested parties may go to the Investor Relations section of Columbia’s website at least fifteen minutes prior to the start time of the call in order to register and to download and install any necessary audio software.

Direct link to the Conference Call Webcast:
https://event.on24.com/wcc/r/3080303/DB5494DD212CA531E746458D6A16CE29



The following information was filed by Columbia Property Trust, Inc. (CXP) on Thursday, April 29, 2021 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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 June 30, 2021
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)
  __________________________________
Maryland20-0068852
(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 classTrading SymbolsName of each exchange on which registered
Common StockCXPNYSE
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, 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 filerAccelerated 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 July 23, 2021: 114,903,984 shares





FORM 10-Q
COLUMBIA PROPERTY TRUST, INC.
TABLE OF CONTENTS
 
Page No.
Item 1.
Item 2.
Item 3.
Item 4.
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.


2

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained in this quarterly report on Form 10-Q ("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 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 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, such as the continued impact of the COVID-19 pandemic, including uncertainty surrounding implications of variants of the disease;
the impact of social distancing, shelter-in-place, border closings, travel restrictions, remote work trends, and similar governmental and private measures taken to combat the spread of COVID-19 and related variants;
future developments involving our ongoing strategic alternatives review process, as well as costs, expenses, and disruption associated with such strategic alternatives review process;
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 reduced demand for, or oversupply of, office space in our markets, including increased sublease availabilities;
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;
risks associated with our ability to continue to qualify as a real estate investment trust;
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.
3

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, 2020 and Part II, Item 1A – Risk Factors, in this Quarterly Report. Although we believe that the expectations reflected in such forward-looking 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.
4

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 Form 10-Q, and with audited consolidated financial statements and the related notes for the year ended December 31, 2020. Columbia Property Trust's results of operations for the three and six months ended June 30, 2021 are not necessarily indicative of the operating results expected for the full year.

5

COLUMBIA PROPERTY TRUST, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per-share amounts)
(Unaudited)
June 30, 2021December 31, 2020
Assets:
Real estate assets, at cost:
Land$809,843 $809,843 
Buildings and improvements, less accumulated depreciation of $330,336 and $303,764, as of June 30, 2021 and December 31, 2020, respectively
1,511,230 1,537,683 
Intangible lease assets, less accumulated amortization of $59,657 and $57,947, as of
June 30, 2021 and December 31, 2020, respectively
41,242 46,075 
Construction in progress129,987 83,943 
Total real estate assets2,492,302 2,477,544 
Operating lease assets38,381 39,165 
Investments in unconsolidated joint ventures1,288,744 1,295,800 
Cash and cash equivalents21,424 61,882 
Tenant receivables 2,521 2,540 
Straight-line rent receivable75,819 74,051 
Prepaid expenses and other assets43,901 42,285 
Intangible lease origination costs, less accumulated amortization of $36,549 and $35,161, as of
June 30, 2021 and December 31, 2020, respectively
18,836 21,451 
Deferred lease costs, less accumulated amortization of $20,872 and $18,669, as of
June 30, 2021 and December 31, 2020, respectively
64,515 71,800 
Total assets$4,046,443 $4,086,518 
Liabilities:
Line of credit and notes payable, net of unamortized deferred financing costs of $1,163 and $1,470, as of June 30, 2021 and December 31, 2020, respectively
$590,837 $558,530 
Bonds payable, net of discounts of $853 and $943 and unamortized deferred financing costs of $2,649 and $2,954, as of June 30, 2021 and December 31, 2020, respectively
696,498 696,103 
Operating lease liabilities1,499 2,185 
Accounts payable, accrued expenses, and accrued capital expenditures88,241 91,493 
Dividends payable— 24,038 
Deferred income15,515 16,155 
Intangible lease liabilities, less accumulated amortization of $8,316 and $8,867, as of
June 30, 2021 and December 31, 2020, respectively
12,965 14,420 
Total liabilities1,405,555 1,402,924 
Commitments and Contingencies (Note 7) — 
Equity:
Common stock, $0.01 par value, 225,000,000 shares authorized, 114,903,984 and 114,453,379 shares issued and outstanding, as of June 30, 2021 and December 31, 2020, respectively
1,149 1,145 
Additional paid-in capital4,379,575 4,376,116 
Cumulative distributions in excess of earnings(1,803,464)(1,749,811)
Cumulative other comprehensive loss(12,302)(18,201)
Total stockholders' equity attributable to Columbia Property Trust2,564,958 2,609,249 
Noncontrolling interest in Columbia Operating Partnership71,210 69,414 
Noncontrolling interest in consolidated joint venture4,720 4,931 
Total equity2,640,888 2,683,594 
Total liabilities and equity$4,046,443 $4,086,518 
See accompanying notes.

6

COLUMBIA PROPERTY TRUST, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per-share amounts)
(Unaudited)(Unaudited)
 Three Months Ended
June 30,
Six Months Ended
June 30,
 2021202020212020
Revenues:
Lease revenues$53,434 $68,924 $107,743 $136,931 
Management fee revenues9,988 10,447 20,067 18,687 
Other property income —  
63,422 79,371 127,810 155,625 
Expenses:
Property operating costs19,823 21,220 40,651 43,917 
Depreciation15,472 17,379 32,003 35,709 
Amortization4,878 7,405 9,722 14,126 
General and administrative 9,242 11,119 19,018 22,901 
Strategic review costs6,454 — 8,810 — 
Management fee expense8,338 9,231 17,607 16,176 
Acquisition and restructuring costs (Note 3)  358  12,439 
64,207 66,712 127,811 145,268 
Other Income (Expense):
Interest expense(7,421)(9,522)(14,957)(19,077)
Interest income and other income (expense)(124)(154)(363)(312)
Income tax benefit (expense)(447)185 (118)2,428 
Income from unconsolidated joint ventures2,807 1,890 9,914 4,546 
Gain on sale of real estate assets 17  13,361 
(5,185)(7,584)(5,524)946 
Net income (loss)(5,970)5,075 (5,525)11,303 
Less: net income attributable to noncontrolling interest in Columbia Operating Partnership(36)(126)(133)(197)
Less: net loss attributable to noncontrolling interest in consolidated joint venture129 136 258 269 
Net income (loss) attributable to common stockholders$(5,877)$5,085 $(5,400)$11,375 
Per-Share Information – Basic:
Net income (loss) $(0.05)$0.04 $(0.05)$0.10 
Weighted-average common shares outstanding – basic114,143 113,903 114,129 114,187 
Per-Share Information – Diluted:
Net income (loss)$(0.05)$0.04 $(0.05)$0.10 
Weighted-average common shares outstanding – diluted117,901 113,903 117,731 114,193 
See accompanying notes.
7

COLUMBIA PROPERTY TRUST, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands)
(Unaudited)(Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
 2021202020212020
Net income (loss)$(5,970)$5,075 $(5,525)$11,303 
Market value adjustments to interest rate swaps1,442 (1,518)6,066 (21,511)
Comprehensive income (loss) (4,528)3,557 541 (10,208)
Less: market value adjustments to interest rate swaps attributable to noncontrolling interest in Columbia Operating Partnership(40)42 (167)627 
Less: net income attributable to noncontrolling interest in Columbia Operating Partnership(36)(126)(133)(197)
Less: net loss attributable to noncontrolling interest in consolidated joint venture129 136 258 269 
Comprehensive income (loss) attributable to common stockholders$(4,475)$3,609 $499 $(9,509)
See accompanying notes.


8

COLUMBIA PROPERTY TRUST, INC.
CONSOLIDATED STATEMENTS OF EQUITY
FOR THE THREE MONTHS ENDED JUNE 30, 2021 and 2020 (UNAUDITED)
(in thousands, except per-share amounts)
Stockholders' Equity
Common StockAdditional
Paid-In
Capital
Cumulative
Distributions
in Excess of
Earnings
Cumulative
Other
Comprehensive
Income (Loss)
Total
Equity
Noncontrolling Interests
 Columbia Operating PartnershipConsolidated Joint VentureTotal Equity
 SharesAmount
Balance, March 31, 2021
114,870 $1,149 $4,377,157 $(1,773,457)$(13,704)$2,591,145 $70,307 $4,807 $2,666,259 
Issuance of common stock and Operating Partnership Units to directors and employees, and amortized (net of income tax withholdings)34  2,418   2,418 1,508  3,926 
Distributions to common stockholders and Operating Partnership Unit holders ($0.21 per share/unit)
   (24,130) (24,130)(681) (24,811)
Contributions from noncontrolling interests        42 42 
Allocation of net income   (5,877) (5,877)36 (129)(5,970)
Market value adjustment to interest rate swap    1,402 1,402 40  1,442 
Balance, June 30, 2021
114,904 $1,149 $4,379,575 $(1,803,464)$(12,302)$2,564,958 $71,210 $4,720 $2,640,888 

Stockholders' Equity
Common StockAdditional
Paid-In
Capital
Cumulative
Distributions
in Excess of
Earnings
Cumulative
Other
Comprehensive
Loss
Total
Equity
Noncontrolling Interests
 Columbia Operating PartnershipConsolidated Joint VentureTotal Equity
 SharesAmount
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 
Issuance of common stock and Operating Partnership Units to directors and employees, and amortized (net of income tax withholdings)51 2,078 — — 2,079 3,156 — 5,235 
Distributions to common stockholders and Operating Partnership Unit holders ($0.21 per share/unit)
— — — (24,037)— (24,037)(685)— (24,722)
Contributions from noncontrolling interests — — — — — — — 45 45 
Allocation of net income— — — 5,085 — 5,085 126 (136)5,075 
Market value adjustment to interest rate swap— — — — (1,476)(1,476)(42)— (1,518)
Balance, June 30, 2020114,464 $1,145 $4,371,233 $(1,806,071)$(21,985)$2,544,322 $59,020 $5,160 $2,608,502 

9

COLUMBIA PROPERTY TRUST, INC.
CONSOLIDATED STATEMENTS OF EQUITY
FOR THE SIX MONTHS ENDED JUNE 30, 2021 AND JUNE 30, 2020 (UNAUDITED)
(in thousands, except per-share amounts)
Stockholders' Equity
Common StockAdditional
Paid-In
Capital
Cumulative
Distributions
in Excess of
Earnings
Cumulative
Other
Comprehensive
Income (Loss)
Total
Equity
Noncontrolling Interests
 Columbia Operating PartnershipConsolidated Joint VentureTotal Equity
 SharesAmount
Balance, December 31, 2020
114,453 $1,145 $4,376,116 $(1,749,811)$(18,201)$2,609,249 $69,414 $4,931 $2,683,594 
Issuance of common stock and Operating Partnership Units to directors and employees, and amortized (net of income tax withholdings)451 4 3,260   3,264 3,339  6,603 
Repurchases of Operating Partnership Units  199   199 (481) (282)
Distributions to common stockholders and Operating Partnership Unit holders ($0.42 per share/unit)
   (48,253) (48,253)(1,362) (49,615)
Contributions from noncontrolling interests        47 47 
Allocation of net income   (5,400) (5,400)133 (258)(5,525)
Market value adjustment to interest rate swap    5,899 5,899 167  6,066 
Balance, June 30, 2021
114,904 $1,149 $4,379,575 $(1,803,464)$(12,302)$2,564,958 $71,210 $4,720 $2,640,888 
Stockholders' Equity
Common StockAdditional Paid-In CapitalCumulative Distributions in Excess of EarningsCumulative
Other
Comprehensive
Loss
Total
Equity
Noncontrolling Interests
Columbia Operating PartnershipConsolidated Joint VentureTotal Equity
SharesAmount
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 
Issuance of common stock and Operating Partnership Units to directors and employees, and amortized (net of income tax withholdings)378 2,175 — — 2,179 5,514 — 7,693 
Contributions from noncontrolling interests — — — — — — — 61 61 
Distributions to common stockholders and Operating Partnership Unit holders ($0.42 per share/unit)
— — — (48,212)— (48,212)(1,370)— (49,582)
Consolidated joint venture partnership interest acquired through investment in the Real Estate Funds— — — — — — — (109)(109)
Allocation of net income— — — 11,375 — 11,375 197 (269)11,303 
Market value adjustment to interest rate swap— — — — (20,884)(20,884)(627)— (21,511)
Balance, June 30, 2020
114,464 $1,145 $4,371,233 $(1,806,071)$(21,985)$2,544,322 $59,020 $5,160 $2,608,502 

See accompanying notes.
10

COLUMBIA PROPERTY TRUST, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
Six Months Ended June 30,
 20212020
Cash Flows From Operating Activities:
Net income (loss)$(5,525)$11,303 
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities:
Straight-line rental income(3,414)(5,698)
Lease revenues reserved for doubtful accounts – straight-line rental income1,645 — 
Lease revenues reserved for doubtful accounts – tenant receivables1,667 144 
Noncash operating lease expense99 171 
Depreciation32,003 35,709 
Amortization8,739 11,345 
Noncash interest expense1,286 1,285 
Gain on sale of real estate assets (13,361)
Income from unconsolidated joint ventures(9,914)(4,546)
Distributions of earnings from unconsolidated joint ventures16,401 14,038 
Market value adjustment to investment in Real Estate Funds405 387 
Stock based compensation expense8,091 9,894 
Changes in assets and liabilities, net of acquisitions and dispositions:
Increase in tenant receivables, net(1,648)(1,754)
Decrease (increase) in prepaid expenses and other assets563 (10,654)
Decrease in accounts payable and accrued expenses(7,410)(2,611)
Decrease in deferred income(640)(1,277)
Net cash provided by operating activities42,348 44,375 
Cash Flows From Investing Activities:
Net proceeds from the sale of real estate 250,839 
Normandy Acquisition (Note 3) (13,971)
Capital improvement and development costs(36,126)(34,451)
Deferred lease costs paid(596)(5,929)
Investments in unconsolidated joint ventures(14,622)(49,990)
Investments in real estate-related funds(3,129)(387)
Distributions from unconsolidated joint ventures15,190 7,251 
Net cash provided by (used in) investing activities(39,283)153,362 
Cash Flows From Financing Activities:
Financing costs paid(150)(154)
Proceeds from lines of credit and notes payable48,000 347,000 
Repayments of lines of credit and notes payable(16,000)(180,000)
Contributions from consolidated joint venture partner47 60 
Distributions paid to stockholders and OP unit holders(73,653)(73,792)
Redemptions of common stock and OP units(1,767)(25,477)
Net cash provided by (used in) financing activities(43,523)67,637 
Net increase (decrease) in cash and cash equivalents(40,458)265,374 
Cash and cash equivalents, beginning of period61,882 12,303 
Cash and cash equivalents, end of period$21,424 $277,677 
See accompanying notes.
11

COLUMBIA PROPERTY TRUST, INC.
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2021
(unaudited)

1.Organization
Columbia Property Trust, Inc. ("Columbia Property Trust" or "Columbia") (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 (97.3%). 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 June 30, 2021, Columbia Property Trust owned 15 operating properties and four properties under development or redevelopment, of which 10 were wholly owned and nine were owned through joint ventures, located in New York, San Francisco, Washington, D.C., and Boston. As of June 30, 2021, these operating properties contained 6.2 million rentable square feet and were approximately 93.5% 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, 2020 (the "2020 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.
12

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
With respect to development and redevelopment projects, Columbia Property Trust capitalizes construction costs, including hard and soft costs, operating costs, and interest expense. Interest expense is capitalized on development, redevelopment, and improvement projects funded directly and through its interest in unconsolidated joint ventures. During the three months ended June 30, 2021 and 2020, $3.0 million and $2.3 million, respectively, of interest was capitalized to construction in progress; and during the three months ended June 30, 2021 and 2020, $0.9 million and $0.5 million, respectively, of interest was capitalized to investments in unconsolidated joint ventures. During the six months ended June 30, 2021 and 2020, $5.8 million and $5.0 million, respectively, of interest was capitalized to construction in progress; and during the six months ended June 30, 2021 and 2020, $1.7 million and $0.8 million, respectively, of interest was capitalized to investments in unconsolidated joint ventures. See Note 5, Line of Credit and Notes Payable, for additional information.
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 June 30, 2021 and December 31, 2020, none of Columbia's properties met the criteria to be classified as held for sale in the accompanying consolidated balance sheets.
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
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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 June 30, 2021.
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 June 30, 2021 and December 31, 2020, 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 AssetsIntangible
Lease
Origination
Costs
Intangible
Below-Market
In-Place Lease
Liabilities
Above-Market
In-Place
Lease Assets
Absorption
Period Costs
June 30, 2021Gross$2,481 $98,418 $55,385 $21,281 
Accumulated Amortization(1,460)(58,197)(36,549)(8,316)
Net$1,021 $40,221 $18,836 $12,965 
December 31, 2020Gross$2,480 $101,542 $56,612 $23,287 
Accumulated Amortization(1,374)(56,573)(35,161)(8,867)
Net$1,106 $44,969 $21,451 $14,420 
Amortization of Intangible Assets and Liabilities Arising From In-Place Leases
For the three and six months ended June 30, 2021 and 2020, Columbia Property Trust recognized the following amortization of intangible lease assets and liabilities (in thousands):
 Intangible Lease AssetsIntangible
Lease
Origination
Costs
Intangible
Below-Market
In-Place Lease
Liabilities
Above-Market
In-Place
Lease Assets
Absorption
Period Costs
For the Three Months Ended June 30, 2021$42 $2,369 $1,313 $734 
For the Three Months Ended June 30, 2020$42 $3,338 $1,479 $1,554 
For the Six Months Ended June 30, 2021$84 $4,738 $2,612 $1,456 
For the Six Months Ended June 30, 2020$85 $7,038 $3,065 $3,150 
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The net intangible assets and liabilities remaining as of June 30, 2021 will be amortized as follows, excluding amounts held for sale, if applicable (in thousands):
 Intangible Lease AssetsIntangible
Lease
Origination
Costs
Intangible
Below-Market
In-Place Lease
Liabilities
Above-Market
In-Place
Lease Assets
Absorption
Period Costs
For the Remainder of 2021$86 $4,216 $1,795 $1,346 
For the Years Ending December 31:
2022172 7,620 3,335 2,571 
2023172 6,138 2,810 1,995 
2024172 5,333 2,500 1,748 
2025172 3,943 1,849 1,182 
2026109 2,832 1,321 964 
Thereafter138 10,139 5,226 3,159 
$1,021 $40,221 $18,836 $12,965 
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
Columbia Property Trust holds 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 a 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 June 30, 2021 and December 31, 2020, investments in the Real Estate Funds of approximately $6.7 million and $4.3 million, respectively, are included in prepaid expenses and other assets on the accompanying consolidated balance sheet. For both the three months ended June 30, 2021 and 2020, Columbia Property Trust recognized unrealized losses on its investments in Real Estate Funds of approximately $0.2 million; and, for both the six months ended June 30, 2021 and 2020, Columbia Property Trust recognized unrealized losses on its investments in Real Estate Funds of approximately $0.4 million. These losses are 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.
Tenant Receivables
Tenant receivables consist of rental and reimbursement billings due from tenants. Tenant receivables are recorded at the original amount earned, which approximates fair value. Management assesses the realizability of tenant receivables on an ongoing basis. When the collectability of tenant receivables is not considered probable, the receivable is written
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down against lease revenues. During the three months ended June 30, 2021, $0.9 million of previously written down tenant receivables were recovered and recognized as lease revenues, net of current period write-downs; and during the three months ended June 30, 2020, $0.1 million of tenant receivables were written down against lease revenues. During the six months ended June 30, 2021 and 2020, tenant receivables of $0.5 million and $0.1 million, respectively, were written down against lease revenues, net of recoveries.
Straight-Line Rent Receivable
Straight-line rent receivable reflects the amount of cumulative adjustments necessary to present rental income on a straight-line basis. Columbia Property Trust recognizes rental revenues on a straight-line basis, ratably over the term of each lease; however, leases often provide for payment terms that differ from the revenue recognized. When the amount of cash billed is less than the amount of revenue recognized, typically early in the lease, straight-line rent receivable is recorded for the difference. The receivable is depleted during periods later in the lease when the amount of cash paid by the tenant is greater than the amount of revenue recognized. When the collection of future rental billings is not considered probable, tenants are moved to "cash basis billings," at which point the corresponding straight-line rent receivable is written down against lease revenues, and future lease revenues are recognized upon receipt of payment. During the three months ended June 30, 2021, approximately $2.1 million of straight-line rent receivables were written down against lease revenues; and, during the six months ended June 30, 2021, approximately $2.3 million of straight-line rent receivables were written down against lease revenues.
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 June 30, 2021, 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 TypeBalance Sheet ClassificationJune 30,
2021
December 31,
2020
Derivatives Designated as Hedging Instruments:
Interest rate contractsAccounts payable$12,654 $18,720 
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
June 30,
Six Months Ended
June 30,
 2021202020212020
Market value adjustment to interest rate swaps designated as hedging instruments and included in other comprehensive income (loss)$1,442 $(1,518)$6,066 $(21,511)
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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. Such 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.
Strategic Review Costs
During the three and six months ended June 30, 2021, the Company incurred strategic review costs of approximately $6.5 million and $8.8 million, respectively, which include costs incurred in connection with a proxy contest, which was withdrawn in late April before the annual stockholders' meeting in May 2021, and an ongoing process to review strategic alternatives for the Company.
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 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, earnings of a TRS entity 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 the consolidated statement of cash flows have been reclassified to conform with the current-period presentation. With respect to adjustments to reconcile net income to cash provided by operating activities, lease revenues reserved for doubtful accounts – tenant receivables includes amounts previously reported in decrease (increase) in tenant receivables, net.
Recent Accounting Pronouncements
Accounting Standard Update 2021-01, Reference Rate Reform ("ASC 2021-01"), which was issued on and effective as of January 7, 2021, refines the scope of ASC 848, Reference Rate Reform ("ASC 848"), which was codified in 2020 to address the accounting and disclosure impacts of reference rate reform and the anticipated discontinuance of LIBOR. Columbia Property Trust has matched LIBOR-based debt with LIBOR-based interest rate swaps, and has elected to apply the
17

practical expedients provided for in ASC 848 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 the Company's interest rate swaps as cash flow hedges in the event that its debt and interest rate swaps are not amended concurrently to reflect a new reference rate. ASC 2021-01 allows for entities to either apply the practical expedient as Columbia has elected to do, or change its effectiveness approach to a quantitative model as provided for in existing guidance. Columbia Property Trust continues to evaluate the impact of the guidance and may apply other elections as additional reference rate changes occur. ASC 848 and ASU 2021-01 may be applied to swaps entered into through December 31, 2022. Neither has had a material impact on Columbia Property Trust's consolidated financial statements or disclosures.

3.     Transactions
Terminal Warehouse Joint Venture Investment
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 for $40.0 million. Terminal Warehouse is 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 $645.5 million as of June 30, 2021. This acquisition loan was replaced with a construction loan in July 2021, as further described in Note 4, Unconsolidated Joint Ventures. 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.
Real Estate Dispositions
During 2020, Columbia Property Trust sold the following properties. Additional information for certain of the disposition transactions is provided below the table. There have been no real estate dispositions in 2021 to date.
PropertyLocationDate% Sold
Sales Price(1)
(in thousands)
Gain (loss) on Sale
(in thousands)
221 Main StreetSan Francisco, CAOctober 8, 202045 %$180,000 $175,271 
Pasadena Corporate ParkLos Angeles, CAMarch 31, 2020100 %$78,000 $(67)
Cranberry Woods DrivePittsburgh, PAJanuary 16, 2020100 %$180,000 $13,428 
(1)Exclusive of transaction costs and price adjustments.

221 Main Street – Partial Sale
On October 8, 2020, Columbia Property Trust contributed 221 Main Street to a joint venture and simultaneously sold a 45.0% interest in this joint venture (the "221 Main Street Joint Venture") for a gross sales price of $180.0 million, exclusive of transaction costs, resulting in a gain on sale of $175.3 million in the fourth quarter of 2020. Following this transaction, Columbia Property Trust owns a 55.0% interest in the 221 Main Street Joint Venture. 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, during the fourth quarter of 2020.
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 $67,000. Columbia Property Trust recognized an impairment loss of $20.6 million related to this property in the fourth quarter of 2019. At the time of sale, the proceeds from this transaction were held in cash and cash equivalents.
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Cranberry Woods Drive
On January 16, 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.
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 per unit. 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(1)
$63,806 
Prepaid expenses and other assets(2)
7,670 
Cash1,260 
Operating lease assets934 
Investments in unconsolidated joint ventures(3)
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)In the fourth quarter of 2020, in connection with Columbia's annual assessment of the recoverability of goodwill, the Company wrote off this balance by recording an impairment loss of $63.8 million.
(2)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.
(3)Reflects interests in five unconsolidated joint ventures that earn fees for providing management services to properties affiliated with the Real Estate Funds.
For the period from January 24, 2020 through June 30, 2020, Columbia Property Trust recognized additional revenues of $12.2 million and net income, excluding the impact of acquisition costs, of $1.4 million as a result of the Normandy Acquisition. During the six months ended June 30, 2020, Columbia Property Trust incurred $12.4 million of acquisition and restructuring costs related to the Normandy Acquisition.

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4.    Unconsolidated Joint Ventures
As of June 30, 2021 and December 31, 2020, 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 VentureProperty NameGeographic MarketOwnership InterestJune 30,
2021
December 31, 2020
University Circle Joint VentureUniversity CircleSan Francisco55.00 %$274,442 $276,574 
333 Market Street Joint Venture333 Market StreetSan Francisco55.00 %264,237 265,673 
1800 M Street Joint Venture1800 M StreetWashington, D.C.55.00 %225,066 227,847 
221 Main Street Joint Venture221 Main StreetSan Francisco55.00 %214,269 219,078 
114 Fifth Avenue Joint Venture114 Fifth AvenueNew York49.50 %68,708 74,273 
Market Square Joint VentureMarket SquareWashington, D.C.51.00 %132,698 134,747 
799 Broadway Joint Venture(2)
799 BroadwayNew York49.70 %57,365 53,248 
Terminal Warehouse Joint Venture(2)
Terminal WarehouseNew York8.65 %51,390 43,771 
Real Estate Services Joint Ventures(3)
n/a(3)
n/a(3)
Various(3)
569 589 
$1,288,744 $1,295,800 
(1)Includes basis differences. There are aggregate net differences between the historical costs recorded at the joint venture level and Columbia Property Trust's investments in unconsolidated joint ventures of $380.9 million and $383.5 million as of June 30, 2021 and December 31, 2020, respectively. 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 on its investments in the 799 Broadway Joint Venture and the Terminal Warehouse Joint Venture: $0.9 million and $0.5 million during the three months ended June 30, 2021 and 2020, respectively, and $1.7 million and $0.8 million during the six months ended June 30, 2021 and 2020, respectively.
(3)Columbia Property Trust owns the following interests in five unconsolidated joint ventures that earn fees for providing real estate 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 two of its unconsolidated joint ventures are variable interest entities, and the Company is not the primary beneficiary. Therefore, the Company uses the equity method of accounting to record its investment in these joint ventures. For the remaining joint ventures, 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 also uses the equity method of accounting to record its investment in these joint ventures. 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.
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 June 30, 2021.
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Condensed Combined Financial Information
Summarized balance sheet information for each of the unconsolidated joint ventures is as follows (in thousands):
Total AssetsTotal Debt
Total Equity(1)
June 30,
2021
December 31, 2020June 30,
2021
December 31, 2020June 30,
2021
December 31, 2020
University Circle Joint Venture$210,121 $213,045 $ $— $207,459 $208,541 
333 Market Street Joint Venture353,455 357,370  — 340,961 344,103 
1800 M Street Joint Venture420,441 427,602  — 406,943 411,957 
221 Main Street Joint Venture226,815 229,745  — 222,775 224,732 
114 Fifth Avenue Joint Venture451,394 462,319  — 91,521 101,952 
Market Square Joint Venture568,691 577,095 324,894 
(2)
324,868 232,583 237,778 
799 Broadway Joint Venture263,954 246,456 150,305 
(2)
138,930 105,126 99,000 
Terminal Warehouse Joint Venture1,130,218 1,045,852 645,057 
(2)
643,819 456,203 380,277 
Real Estate Services Joint Ventures1,513 1,754  — 1,056 1,104 
$3,626,602 $3,561,238 $1,120,256 $1,107,617 $2,064,627 $2,009,444 
(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 or liabilities.
(2)See "Joint Venture Debt" below for more details.
Joint Venture Debt
The Market Square Joint Venture has a $325.0 million mortgage note, which bears interest at 5.07% and matures on July 1, 2023.
The 799 Broadway Joint Venture has $150.8 million outstanding on a construction loan (the "799 Broadway Construction Loan"), net of $0.5 million of net unamortized deferred financing costs. 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 plus a spread of 425 basis points, with a LIBOR floor of 1.00% and cap of 4.00%. A portion of the monthly interest payments accrue into the balance of the loan. The 799 Broadway 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 799 Broadway Construction Loan, see Note 7, Commitments and Contingencies.
As of June 30, 2021, the Terminal Warehouse Joint Venture had $645.5 million outstanding on an acquisition loan (the "Terminal Warehouse Acquisition Loan"), net of $0.5 million of net unamortized deferred financing costs. The Terminal Warehouse Acquisition Loan is an interest-only acquisition loan with a total capacity of $650.0 million, which bears interest at LIBOR plus a spread of 340 basis points, with a LIBOR floor of 2.28% and cap of 3.50%, and matures on January 23, 2022.
On July 23, 2021, the Terminal Warehouse Acquisition Loan was replaced with a construction loan (the "Terminal Warehouse Construction Loan"), with a total capacity of $1,248.7 million, bearing interest at LIBOR plus 6.26%. The Terminal Warehouse Construction Loan matures on July 23, 2025, with two, one-year extension options. At closing, $680.7 million was outstanding on the Terminal Warehouse Construction Loan. In connection with the execution of the Terminal Warehouse Construction Loan, Columbia Property Trust, along with certain joint venture partners, entered into a $150.0 completion guaranty.

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Summarized income statement information for the unconsolidated joint ventures for the three months ended June 30, 2021 and 2020 is as follows (in thousands):
Total RevenuesNet Income (Loss)
Columbia Property Trust's Share of Net Income (Loss)(1)
202120202021202020212020
University Circle Joint Venture$10,102 $11,003 $4,910 $5,719 $2,701 $3,145 
333 Market Street Joint Venture7,161 7,122 3,690 3,715 2,029 2,043 
1800 M Street Joint Venture9,490 9,445 1,631 1,556 897 856 
221 Main Street Joint Venture7,904 — 2,686 — 1,478 — 
114 Fifth Avenue Joint Venture10,447 10,380 (1,945)(2,512)(963)(1,243)
Market Square Joint Venture12,470 12,122 (2,601)(2,960)(1,326)(1,509)
799 Broadway Joint Venture — (2)(68)(1)(33)
Terminal Warehouse Joint Venture1,913 9,804 (2,152)(8,361)(186)(723)
Real Estate Services Joint Ventures1,972 1,839 1,053 949 567 515 
$61,459 $61,715 $7,270 $(1,962)$5,196 $3,051 
(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.
Summarized income statement information for the unconsolidated joint ventures for the six months ended June 30, 2021 and 2020 is as follows (in thousands):
Total RevenuesNet Income (Loss)
Columbia Property Trust's Share of Net Income (Loss)(1)
202120202021202020212020
University Circle Joint Venture$20,407 $21,927 $10,022 $11,434 $5,512 $6,289 
333 Market Street Joint Venture14,297 14,189 7,362 7,420 4,049 4,081 
1800 M Street Joint Venture19,121 19,382 3,094 3,308 1,702 1,819 
221 Main Street Joint Venture15,886 — 5,269 — 2,898 — 
114 Fifth Avenue Joint Venture21,182 20,808 4,920 (5,165)2,435 (2,557)
Market Square Joint Venture25,067 24,812 (5,187)(4,954)(2,645)(2,527)
799 Broadway Joint Venture — (42)(100)(21)(49)
Terminal Warehouse Joint Venture4,086 12,111 (4,304)(12,102)(372)(1,047)
Real Estate Services Joint Ventures3,861 3,714 2,015 1,887 1,132 856 
$123,907 $116,943 $23,149 $1,728 $14,690 $6,865 
(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.
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Management Fees
Columbia Property Trust provides property and asset management services to certain of its joint ventures. Under these agreements, Columbia Property Trust oversees the day-to-day operations of these joint ventures and their properties, including property management, property accounting, leasing, construction management, and other administrative services. During the three and six months ended June 30, 2021 and 2020, Columbia Property Trust earned the following fees from its unconsolidated joint ventures (in thousands):
Three Months Ended
June 30,
Six Months Ended
June 30,
2021202020212020
University Circle Joint Venture$565 $581 1,152 1,168 
333 Market Street Joint Venture209 213 418 427 
1800 M Street Joint Venture538 691 1,100 1,246 
221 Main Street Joint Venture455 — 926 — 
Market Square Joint Venture617 599 1,222 1,173 
799 Broadway Joint Venture 301  524 
$2,384 $2,385 $4,818 $4,538 

For the three months ended June 30, 2021 and 2020, Columbia Property Trust earned reimbursement income for management fee administration costs of $1.2 million and $1.8 million, respectively; and for the six months ended June 30, 2021 and 2020, Columbia Property Trust earned reimbursement income for management fee administration costs of $2.6 million and $3.1 million, respectively, which are included in management fee revenues.
Asset and property management fees of $0.4 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 both June 30, 2021 and December 31, 2020.
Columbia Property Trust also earns management fees through its interest in the Real Estate Services Joint Ventures, which are recorded as income in unconsolidated joint ventures in the accompanying consolidated statements of operations above.

5.    Line of Credit and Notes Payable
As of June 30, 2021 and December 31, 2020, Columbia Property Trust had the following line of credit and notes payable indebtedness (excluding bonds payable; see Note 6, Bonds Payable) (in thousands):
FacilityJune 30,
2021
December 31,
2020
$300 Million Term Loan
$300,000 $300,000 
$150 Million Term Loan
150,000 150,000 
Revolving Credit Facility142,000 110,000 
Less: Deferred financing costs related to term loans and notes payable, net of accumulated amortization(1,163)(1,470)
$590,837 $558,530 
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 payment 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").
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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, which is designated as a cash flow hedge.
Columbia Property Trust's $150.0 million unsecured term loan matures in July 2022 (the "$150 Million Term Loan") and bears interest, at the Company's 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 the Company's current credit rating, the interest rate on the $150 Million Term Loan is effectively fixed at 3.07%, which is designated as a cash flow hedge.
Fair Value of Debt
The estimated fair value of Columbia Property Trust's line of credit and notes payable as of June 30, 2021 and December 31, 2020, was approximately $595.5 million and $564.6 million, respectively. The related carrying value of the line of credit and notes payable as of June 30, 2021 and December 31, 2020, was $592.0 million and $560.0 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 six months ended June 30, 2021 and 2020, Columbia Property Trust made interest payments of approximately $7.5 million and $10.1 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 borrowings for the period. During the six months ended June 30, 2021, Columbia Property Trust capitalized interest of $7.5 million, $5.8 million of which was capitalized to construction in progress, and $1.7 million of which was capitalized to investments in unconsolidated joint ventures. During the six months ended June 30, 2020, Columbia Property Trust capitalized interest of $5.8 million, $5.0 million of which was capitalized to construction in progress, and $0.8 million of which was capitalized to investments in unconsolidated joint ventures. For the six months ended June 30, 2021, the weighted average interest rate on Columbia Property Trust's consolidated outstanding borrowings was 3.22%.
Debt Covenants
As of June 30, 2021, 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 (the "Bonds Payable") as of June 30, 2021 and December 31, 2020: $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"). 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 $13.7 million were made on the Bonds Payable during both the six months ended June 30, 2021 and 2020. Columbia Property Trust is subject to substantially similar covenants under the 2026 Bonds Payable and the
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2025 Bonds Payable. As of June 30, 2021, Columbia Property Trust was in compliance with the restrictive financial covenants on the 2026 Bonds Payable and the 2025 Bonds Payable.
As of June 30, 2021 and December 31, 2020, the estimated fair value of the Bonds Payable was approximately $748.4 million and $738.2 million, respectively, and the related carrying value, net of discounts, as of both June 30, 2021 and December 31, 2020 was $699.1 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 June 30, 2021, the Company is required to fund an additional $43.3 million for construction and tenant improvement allowances related to a vertical expansion project at 80 M Street in Washington, D.C., and $10.5 million related to lobby and tenant improvement allowances for the Pershing lease at 95 Columbus in Jersey City, New Jersey. As of June 30, 2021, accruals have not been recorded for these amounts, as such obligations are recorded as incurred.
Commitments Under Joint Venture Agreements
Columbia Property Trust's joint venture agreements, including those that are in place with joint ventures that are developing or redeveloping properties, provide for capital contributions to be made to the joint ventures by the joint venture partners. As of June 30, 2021, Columbia Property Trust holds nine 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 June 30, 2021.
As of June 30, 2021, the 799 Broadway Joint Venture has $150.8 million in outstanding borrowings on the 799 Broadway Construction Loan, which matures on October 9, 2021. Pursuant to a joint and several guaranty agreement with the 799 Broadway Construction Loan lender, Columbia Property Trust 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 June 30, 2021, the remaining equity contribution requirement is $11.8 million, of which $5.9 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 June 30, 2021, 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 June 30, 2021, the Company had $1.2 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 June 30, 2021.
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
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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, from September 4, 2019 through September 4, 2021 (the "2019 Stock Repurchase Program"). No share repurchases were made during the six months ended June 30, 2021. As of June 30, 2021, $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.
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 six months ended June 30, 2021, Columbia Property Trust granted 421,962 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 six months ended June 30, 2021, Columbia Property Trust granted 429,977 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 and is contingent upon meeting predetermined minimum performance levels.
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Below is a summary of the employee awards issued under the LTI Plan during the six months ended June 30, 2021:
Time-Based AwardsPerformance-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 period497 $20.82 715 $18.51 
Granted422 $14.33 430 $12.39 
Converted(3)
24 (24)
Vested(4)
(199)$21.26 (73)$20.64 
Forfeited(2)$14.34 (1)$13.51 
Unvested awards – end of period(5)
742 $15.75 1,047 $15.16 
(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 2018 3-year Performance-Based RSUs granted on January 1, 2018, which converted to Time-Based Restricted shares in January 2021 and will vest in January 2022.
(4)With respect to the RSUs vesting this period, includes true-ups from the amount granted (based on target-level performance) to the respective amount paid (based on actual performance, as defined by the plan).
(5)As of June 30, 2021, Columbia Property Trust expects approximately 709,000 of the 742,000 unvested restricted stock units to ultimately vest and approximately 1,000,000 of the 1,047,000 unvested Performance-Based RSUs to ultimately vest, assuming a weighted-average forfeiture rate of 4.5%, which was determined based on historical forfeiture rates.
Director Stock Grants
Columbia Property Trust grants equity retainers to its non-executive directors under the LTI Plan. Such grants are made annually for the following year and vest immediately. During the six months ended June 30, 2021 and 2020, Columbia Property Trust made the following equity retainer grants:
Date of GrantSharesGrant-Date Fair Value
2021
May 18, 202134,859 $17.92 
January 4, 2021(1)
582 $14.24 
2020
May 12, 202046,983 $11.73 
March 2, 2020(2)
591 $19.80 
(1)On December 31, 2020, an existing board member was appointed as chair of the board. Reflects the incremental, pro-rated common stock retainer issued for service as chairperson.
(2)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 and six months ended June 30, 2021 and 2020, Columbia Property Trust incurred stock-based compensation expense related to the following events (in thousands):
Three Months Ended
June 30,
Six Months Ended
June 30,
2021202020212020
Amortization of time-based awards$1,101 $946 $2,125 $1,894 
Amortization of performance-based awards(1)
1,186 1,044 2,329 2,075 
Amortization of Preferred OP Unit awards issued in connection with the Normandy Acquisition 1,510 3,155 3,342 5,513 
Issuance of shares to independent directors150 92 296 103 
Total stock-based compensation expense$3,947 $5,237 $8,092 $9,585 
(1)Reflects amortization of awards made under the LTI Plan that will vest in future periods for service during the current period.
The majority of these expenses are included in general and administrative expenses and management fee expense in the accompanying consolidated statements of operations. As of June 30, 2021 and December 31, 2020, there were $19.1 million and $12.4 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. As of June 30, 2021 and December 31, 2020, there were $7.0 million and $10.3 million of unvested Preferred OP Unit awards, respectively, which vest over three or four years from 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"), of which 19,700 were repurchased in the first quarter of 2021. The Preferred OP Units vest over three or 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 June 30, 2021, Columbia Property Trust holds a 97.3% controlling financial interest in Columbia OP. Columbia OP is a variable interest entity in which Columbia Property Trust is the primary beneficiary. Thus, the Company 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 June 30, 2021, Columbia OP has total assets and liabilities of $3.9 billion and $1.5 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. The Company owns an additional 0.15% interest in 101 Franklin Street through its interest in Normandy Real Estate Fund IV, L.P. 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 June 30, 2021, 101 Franklin Street had total assets and liabilities of $5.5 million and $12.3 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 six months ended June 30, 2021 and 2020 (in thousands): 
 Six Months Ended
June 30,
 20212020
Other assets assumed at acquisition$ $245 
Operating lease asset and liability assumed at acquisition$ $1,168 
Other liabilities assumed at acquisition$ $245 
Amortization of net discounts on debt
$90 $90 
Accrued capital expenditures and deferred lease costs$27,898 $15,432 
Market value adjustments to interest rate swaps that qualify for hedge accounting treatment$6,066 $(21,511)
Issuance of Preferred OP Units for the Normandy Acquisition (Note 3)$ $55,306 
Stock-based compensation expense$8,091 $9,894 

11.     Leases
Columbia Property Trust as Lessee
Columbia Property Trust is a lessee on ground leases at certain of its investment properties and office space leases. As of June 30, 2021, Columbia Property Trust has one ground lease at 116 Huntington Avenue in Boston and two office leases. As of June 30, 2021, Columbia Property Trust's ground lease has a remaining lease term of 98.2 years, inclusive of renewal options, and is included, along with its office space leases, in operating lease assets of $38.4 million. Payments for all future periods under this ground lease have already been made. Thus, as of June 30, 2021, operating lease liabilities of $1.5 million include only the present value of future payments due under its office leases, with a weighted-average remaining lease term of 1.4 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 June 30, 2021, the weighted-average remaining term for such leases is approximately 5.7 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 and six months ended June 30, 2021 and 2020 are as follows (in thousands):
For the Three Months Ended June 30,
For the Six Months Ended June 30,
2021202020212020
Fixed payments$47,673 $63,460 $95,363 $124,703 
Variable payments5,761 5,464 12,380 12,228 
Total lease revenues$53,434 $68,924 $107,743 $136,931 

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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 also has the following non-lease revenue streams.
Asset and Property Management Fees
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. Asset and property management services are ongoing and routine, and are provided on a recurring basis. Therefore, such fees are recognized ratably over the service period, usually a period of three months. For the three months ended June 30, 2021 and 2020, Columbia Property Trust earned asset and property management fee revenues of $5.8 million and $3.0 million, respectively; and for the six months ended June 30, 2021 and 2020, Columbia Property Trust earned asset and property management fee revenues of $11.5 million and $7.3 million, respectively. Such fees are included in management fee revenue on the accompanying consolidated statements of operations.
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. Such fees are required to be recognized when Columbia Property Trust's obligation to perform is complete, typically upon execution of the lease. For the three months ended June 30, 2021 and 2020, Columbia Property Trust earned leasing override fees of $24,700 and $16,700, respectively; and for the six months ended June 30, 2021 and 2020, Columbia Property Trust earned leasing override fees of $92,700 and $31,300, 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 June 30, 2021 and 2020, Columbia Property Trust earned construction and development fees of $0.7 million and $1.1 million, respectively; and for the six months ended June 30, 2021 and 2020, Columbia Property Trust earned construction and development fees of $1.0 million and $1.9 million, respectively. 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. Such reimbursement revenues are recognized ratably over the service period, usually a period of one month, three months, or one year. For the three months ended June 30, 2021 and 2020, Columbia Property Trust earned salary and other reimbursement revenue of $3.5 million and $4.4 million, respectively; and for the six months ended June 30, 2021 and 2020, Columbia Property Trust earned salary and other reimbursement revenue of $7.5 million and $7.5 million, respectively. These amounts are included in management fee revenues 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. These revenues are recognized ratably over the service period, usually a period of one month or one quarter. For the six months ended June 30, 2020, Columbia Property Trust earned miscellaneous revenue of $7,100. This amount is included in other property income on the accompanying consolidated statements of operations.
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13.    Earnings Per Share
For the three and six months ended June 30, 2021 and 2020, in computing the basic and diluted earnings per share, net income (loss) attributable to common stockholders has been reduced for the dividends paid on unvested shares granted under the LTI Plan. The following table reconciles the numerator for the basic and diluted earnings-per-share computations shown on the consolidated statements of operations for the three and six months ended June 30, 2021 and 2020 (in thousands):
Three Months Ended
June 30,
Six Months Ended
June 30,
2021202020212020
Net income$(5,970)$5,075 $(5,525)$11,303 
Net income attributable to noncontrolling interest in Columbia OP(36)(126)(133)(197)
Net loss attributable to noncontrolling interest in consolidated joint venture129 136 258 269 
Net income (loss) attributable to common stockholders(5,877)5,085 (5,400)11,375 
Distributions paid on unvested shares(156)(113)(313)(226)
Net income (loss) attributable to common stockholders used to calculate basic earnings per share(6,033)4,972 (5,713)11,149 
Net income attributable to noncontrolling interest in Columbia OP36 126 133 197 
Net income (loss) attributable to common stockholder and Columbia OP Unit holders used to calculate diluted earnings per share$(5,997)$5,098 $(5,580)$11,346 
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 and six months ended June 30, 2021 and 2020, respectively (in thousands):
Three Months Ended
June 30,
Six Months Ended
June 30,
2021202020212020
Weighted-average common shares – basic114,143 113,903 114,129 114,187 
Plus incremental weighted-average shares from time-vested conversions, less assumed stock repurchases:
Previously granted awards, unvested173 — 83 
Future period LTI Plan awards341 — 275 — 
Weighted-average common shares – diluted, before adjustment for OP Units114,657 113,903 114,487 114,193 
Convertible Preferred OP Units 3,244 3,264 3,244 2,831 
Weighted-average common shares – diluted117,901 117,167 117,731 117,024 

Certain anti-dilutive stock awards are not included in the current calculation of dilutive weighted average shares, but could be dilutive in the future. As of June 30, 2021 and June 30, 2020, there were 207,900 and 1,093,100 anti-dilutive shares outstanding, respectively.

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14.    Segment Information
Columbia Property Trust considers geographic location when evaluating its portfolio composition, and in assessing the ongoing operations and performance of its properties. As of June 30, 2021, reportable segments consist of the four key markets in which Columbia Property Trust owns assets: New York, San Francisco, Washington, D.C., and Boston, and the all other markets reportable segment. The all other office markets reportable segment includes properties that are situated similarly within their geographic markets, typically in sub-markets not located within central business districts, and in which Columbia Property Trust does not have a substantial presence and/or does not plan to make further investments. 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.
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 June 30,Six Months Ended June 30,
2021202020212020
New York(1)
$39,305 $45,632 $79,434 $86,737 
San Francisco(2)
29,242 34,702 58,367 69,503 
Washington, D.C.(3)
14,058 14,445 28,490 29,463 
Boston3,708 3,977 7,677 8,126 
All other office markets —  2,587 
Total office segments