EX-99.2 3 a20159308-ksupppkgex992.htm EXHIBIT 99.2 Exhibit

Exhibit 99.2




CHAMBERS STREET PROPERTIES
Table of Contents

 
Page
Forward-Looking Statements
 
Company Profile
 
Quarterly and Subsequent Highlights
 
Financial Information
 
 
Financial Highlights
 
Consolidated Balance Sheets
 
Consolidated Statements of Operations
 
Reconciliation of Net Income to FFO, Core FFO and AFFO
 
Joint Venture Information
 
Consolidated and Pro Rata Share Balance Sheets
 
Consolidated and Pro Rata Share Net Operating Income
 
Same Property Statistics
 
Property Information
 
 
Portfolio Summary
 
Acquisition and Disposition Activity
 
Our Properties
 
Geographic Distribution
 
Significant Tenants
 
Tenant Industry Profile
 
Tenant Lease Expirations
 
Percentage Leased
 
Tenant Leasing Activity
 
Capitalization
 
 
Capital Structure and Debt Maturities
 
Debt Composition
 
Consolidated Debt
 
Unconsolidated Debt
 
Definitions
 
 
Non-GAAP Supplemental Financial Measures
 



Supplemental Information | Third Quarter 2015 | 1



This supplemental information is available on our website at www.ChambersStreet.com. This data is furnished to supplement audited and unaudited regulatory filings of ours and should be read in conjunction with those filings. The financial data herein is unaudited and is provided from the perspective of timeliness to assist readers of quarterly and annual financial filings. As such, data otherwise contained in future regulatory filings covering the same period may restate the data presented herein.
Forward-Looking Statements
This supplemental information may contain various "forward-looking statements." You can identify forward-looking statements by the use of forward-looking terminology such as "believes," "expects," "may," "will," "would," "could," "should," "seeks," "approximately," "intends," "plans," "projects," "estimates" or "anticipates" or the negative of these words and phrases or similar words or phrases. You can also identify forward-looking statements by discussions of strategy, plans or intentions. Statements regarding the following subjects may be impacted by a number of risks and uncertainties, such as: our business strategy; our ability to obtain future financing arrangements; estimates relating to our future distributions; our understanding of our competition; market trends; projected capital expenditures; the impact of technology on our assets, operations and business; the use of the proceeds of any offerings of securities; and our proposed transaction with Gramercy Property Trust Inc. ("Gramercy"). The forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into account all information currently available to us. These beliefs, assumptions and expectations are subject to risks and uncertainties and can change as a result of many possible events or factors, not all of which are known to us. If a change occurs, our business, financial condition, liquidity and results of operations may vary materially from those expressed in our forward-looking statements. You should carefully consider these risks before you make an investment decision with respect to our common shares, along with the following factors that could cause actual results to vary from our forward-looking statements, such as: general volatility of the securities markets in which we participate; national, regional and local economic climates; changes in supply and demand for office and industrial properties; adverse changes in the real estate markets, including increasing vacancy, decreasing rental revenue and increasing insurance costs; availability and credit worthiness of prospective tenants; our ability to maintain rental rates and maximize occupancy; our ability to identify and secure acquisitions; our ability to successfully manage growth or operate acquired properties; our pace of acquisitions and/or dispositions of properties; risks related to development projects (including construction delay, cost overruns or our inability to obtain necessary permits); payment of distributions from sources other than cash flows and operating activities; receiving corporate debt ratings and changes in the general interest rate environment; availability of capital (debt and equity); our ability to refinance existing indebtedness or incur additional indebtedness; our ability to comply with our debt covenants; unanticipated increases in financing and other costs, including a rise in interest rates; the actual outcome of the resolution of any conflict; material adverse actions or omissions by any of our joint venture partners; our ability to operate as a self-managed company; availability of and ability to retain our executive officers and other qualified personnel; future terrorist attacks or epidemics in the United States or abroad; the ability of our operating partnership to continue to qualify as a partnership for U.S. federal income tax purposes; our ability to continue to qualify as a REIT for U.S. federal income tax purposes; foreign currency fluctuations; changes to accounting principles, policies and guidelines applicable to REITs; legislative or regulatory changes adversely affecting REITs and the real estate business; environmental, regulatory and/or safety requirements; our ability to obtain the required shareholder approval required to consummate the merger with Gramercy and the timing and closing of such merger, including the risks that a condition to closing would not be satisfied or that the closing of such merger will not occur; the outcome of any legal proceedings that may be instituted against us and others related to the merger with Gramercy. The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the risk factors included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014 and other of our documents that are on file with or furnished to the SEC. Any forward-looking statements made in this supplemental information are qualified by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, us or our business or operations. We undertake no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. We caution you that actual outcomes and results may differ materially from what is expressed, implied or forecast by our forward-looking statements.
Credit ratings may not reflect the potential impact of risks relating to the structure or trading of our shares and are provided solely for informational purposes. Credit ratings are not recommendations to buy, sell or hold any security, and may be revised or withdrawn at any time by the issuing organization in its sole discretion. We do not undertake any obligation to maintain the ratings or to advise of any change in ratings. Each agency’s rating should be evaluated independently of any other agency’s rating. An explanation of the significance of the ratings may be obtained from each of the rating agencies.


Supplemental Information | Third Quarter 2015 | 2



The following discussion related to our consolidated financial statements should be read in conjunction with the financial statements for the third quarter ended September 30, 2015 included in the Form 10-Q to be filed on or about November 6, 2015.
Additional Information About the Proposed Merger with Gramercy Property Trust Inc. And Where to Find It
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval.  In connection with the transaction with Gramercy, the Company has filed with the SEC a registration statement on Form S-4 that includes a definitive joint proxy statement of the Company and Gramercy that also constitutes a definitive prospectus of the Company.  On October 30, 2015, Gramercy and the Company mailed the definitive proxy statement/prospectus to stockholders of Gramercy and shareholders of the Company.  This material is not a substitute for the joint proxy statement/prospectus or registration statement or for any other document that Gramercy or the Company may file with the SEC and send to Gramercy’s stockholders and/or the Company’s shareholders in connection with the proposed transactions.  INVESTORS AND SECURITY HOLDERS OF GRAMERCY AND THE COMPANY ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS FILED OR TO BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION.
Investors and security holders are able to obtain free copies of the definitive proxy statement/prospectus and other documents filed with the SEC by Gramercy or the Company through the website maintained by the SEC at http://www.sec.gov. Copies of the documents filed with the SEC by Gramercy are also available free of charge on Gramercy’s website at www.gptreit.com, or by contacting Gramercy’s Investor Relations Department at (212) 297-1000. Copies of the documents filed with the SEC by the Company are also available free of charge on the Company’s website at www.chambersstreet.com or by contacting the Company’s Investor Relations Department at (609) 806-2682.
Gramercy, the Company, their respective directors/trustees and certain of their respective executive officers may be considered participants in the solicitation of proxies with respect to the proposed transactions under the rules of the SEC.  Information about the directors and executive officers of Gramercy is set forth in its Annual Report on Form 10-K for the year ended December 31, 2014, which was filed with the SEC on March 9, 2015, its proxy statement for its 2015 annual meeting of stockholders, which was filed with the SEC on May 11, 2015, and other filings filed with the SEC. Information about the trustees and executive officers of the Company is set forth in its Annual Report on Form 10-K for the year ended December 31, 2014, which was filed with the SEC on March 2, 2015, the amendments thereto on Form 10-K/A, which were filed with the SEC on March 30, 2015 and April 30, 2015, and other filings filed with the SEC. These documents can be obtained free of charge from the sources indicated above. Additional information regarding the participants in the proxy solicitations and a description of their direct and indirect interests, by security holdings or otherwise, is also included in the preliminary proxy statement and other relevant materials filed with the SEC.





Supplemental Information | Third Quarter 2015 | 3


CHAMBERS STREET PROPERTIES
Company Profile

Chambers Street Properties is a real estate investment trust focused on acquiring, owning and operating net leased industrial and office properties, leased to creditworthy tenants.
We were formed on March 30, 2004 and commenced operations in July 2004. During 2006, we became a public reporting company and through January 2012, we raised approximately $2.5 billion in gross offering proceeds. On May 21, 2013, we listed our common shares on the New York Stock Exchange under the ticker symbol "CSG."
As of September 30, 2015, we had ownership interests in 125 primarily net leased industrial (primarily warehouse/distribution) and office properties located in 19 U.S. states, France, Germany and the United Kingdom. As of September 30, 2015, our portfolio encompassed 37.2 million net rentable square feet and was 98.3% leased.
Senior Management
Martin A. Reid
Interim President and Chief Executive Officer, and
Chief Financial Officer
Philip L. Kianka
Executive Vice President and
Chief Operating Officer
 
 
Christopher B. Allen
Executive Vice President,
Capital Markets and Finance
Hugh S. O'Beirne, Esq.
Executive Vice President and
Chief Legal Officer

Offices and Contact Information
 
 
 
Corporate Headquarters
47 Hulfish Street
Suite 210
Princeton, NJ 08542
(609) 683-4900
Los Angeles Regional Office
515 S. Flower Street
Suite 1020
Los Angeles, CA 90071
(213) 405-5927
Transfer Agent
Broadridge Corporate Issuer Solutions
1155 Long Island Avenue
Edgewood, NY 11717
(855) 450-0288
Investor Relations
Heather Gentry
Vice President, Investor Relations
Heather.Gentry@CSPREIT.com
(609) 806-2682

Media Relations
Gallen.Neilly
Tim Gallen
Tim@Gallen.com
Andrew Neilly
Andrew@Gallen.com
(925) 930-9848
 
Credit Ratings
 
 
Standard & Poor's Ratings Services: BBB-
Moody's Investors Ratings: Baa3
Equity Research Coverage
 
 
 
 
Capital One Securities, Inc.
Chris Lucas
(571) 633-8151
D.A. Davidson & Co.
Barry Oxford, CFA
(212) 240-9871
JMP Securities
Mitch Germain
(212) 906-3546
Ladenburg Thalmann & Co.
Daniel Donlan
(212) 409-2056
 
 
 
 
Oppenheimer & Co.
Steve Manaker
(212) 667-5950
SunTrust Robinson Humphrey, Inc.
Ki Bin Kim, CFA
(212) 303-4124
Wells Fargo Securities, LLC
Todd Stender
(562) 637-1371
 


Supplemental Information | Third Quarter 2015 | 4



CHAMBERS STREET PROPERTIES
Quarterly and Subsequent Highlights
Proposed Merger with Gramercy Property Trust Inc.
On July 1, 2015, Chambers Street and Gramercy Property Trust Inc. ("Gramercy") entered into a definitive agreement and plan of merger. Under the terms of the merger agreement, Gramercy stockholders will receive 3.1898 common shares of Chambers Street for each share of Gramercy common stock they own. Upon closing, Chambers Street shareholders will own approximately 56% and Gramercy stockholders will own approximately 44% of the combined company. The stock-for-stock transaction is expected to be tax-free to shareholders. The transaction, which cannot be completed without the approval of the Chambers Street shareholders and the Gramercy stockholders, as well as satisfaction of customary closing conditions, is scheduled to close in the fourth quarter of 2015. Meetings of Chambers Street shareholders and Gramercy stockholders have been set for Tuesday, December 15, 2015 to vote on proposals necessary to complete the merger. The record date for shareholders entitled to notice of and to vote at the meeting is October 8, 2015.
Earnings
FFO: $0.17 per diluted share, or $41.0 million, which represents an increase of $0.01 per diluted share compared to Q2 2015 and unchanged per diluted share compared to Q3 2014.
Core FFO: $0.19 per diluted share, or $46.0 million, unchanged per diluted share compared to Q2 2015 and an increase of $0.01 per diluted share compared to Q3 2014.
AFFO: $0.14 per diluted share, or $32.7 million, which represents a decrease of $0.04 per diluted share compared to Q2 2015 and a decrease of $0.02 per diluted share compared to Q3 2014.
Operating
Percentage Leased: 98.3% as of September 30, 2015.
Leasing: Leased 1,794,616 rentable square feet comprised of 1,644,614 rentable square feet of renewals and 150,002 rentable square feet of new leases.
Financing
Paid off nine notes payable totaling $84.0 million secured by various properties on September 2, 2015.



Supplemental Information | Third Quarter 2015 | 5



CHAMBERS STREET PROPERTIES
Financial Highlights
(Unaudited)
($ in Thousands, Except Share Data)

 
September 30,
2015
 
June 30,
2015
 
March 31,
2015
 
December 31,
2014
 
September 30,
2014
Portfolio Statistics:
 
 
 
 
 
 
 
 
 
Number of Consolidated Properties
100

 
100

 
102

 
102

 
100

Number of Unconsolidated Properties(1) 
25

 
25

 
25

 
26

 
29

Total Properties
125

 
125

 
127

 
128

 
129

Total Net Rentable Square Feet(1)
37,193,495

 
37,193,495

 
37,618,745

 
37,740,832

 
36,281,879

Approximate Acquisition Cost(2) 
$
3,299,873

 
$
3,299,873

 
$
3,346,405

 
$
3,362,730

 
$
3,352,860

Percentage Leased(3)
98.3
%
 
99.3
%
 
98.4
%
 
98.3
%
 
97.3
%
Balance Sheet Items:
 
 
 
 
 
 
 
 
 
Total Assets(2) 
$
2,902,418

 
$
2,955,630

 
$
2,980,927

 
$
3,045,198

 
$
3,077,962

Total Debt(2) 
$
1,483,802

 
$
1,523,086

 
$
1,528,226

 
$
1,543,141

 
$
1,548,248

Total Shareholders' Equity
$
1,273,024

 
$
1,304,729

 
$
1,313,550

 
$
1,360,967

 
$
1,406,880


 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2015
 
2014
 
2015
 
2014
Income Items:
 
 
 
 
 
 
 
Total Revenues(2) 
$
87,376

 
$
86,290

 
$
261,111

 
$
258,571

Net Operating Income - GAAP Basis(2)(4) 
$
64,579

 
$
63,288

 
$
192,041

 
$
188,017

Net Operating Income - Cash Basis(2)(4) 
$
63,394

 
$
62,607

 
$
189,895

 
$
188,296

Net Income
$
6,030

 
$
18,468

 
$
21,711

 
$
26,940

Adjusted EBITDA(2)(5) 
$
54,546

 
$
56,010

 
$
160,308

 
$
167,749

Funds from Operations (FFO)(6) 
$
40,971

 
$
40,423

 
$
116,332

 
$
120,045

Core Funds from Operations (Core FFO)(6) 
$
45,950

 
$
41,930

 
$
131,889

 
$
121,949

Adjusted Funds from Operations (AFFO)(6) 
$
32,716

 
$
37,803

 
$
115,830

 
$
114,842

Dividends Declared
$
30,205

 
$
29,854

 
$
90,620

 
$
89,536

Per Share Data (Basic and Diluted)
 
 
 
 
 
 
 
FFO per Share
$
0.17

 
$
0.17

 
$
0.49

 
$
0.51

Core FFO per Share
$
0.19

 
$
0.18

 
$
0.56

 
$
0.51

AFFO per Share
$
0.14

 
$
0.16

 
$
0.49

 
$
0.48

Dividends per Share
$
0.128

 
$
0.126

 
$
0.384

 
$
0.378

Weighted Average Common Shares Outstanding – Basic
236,902,841

 
236,954,218

 
236,915,614

 
236,847,551

Weighted Average Common Shares Outstanding – Diluted
236,913,294

 
236,954,218

 
236,951,537

 
236,847,551

Dividend Payout Ratios:
 
 
 
 
 
 
 
FFO(6) 
73.7
%
 
73.9
%
 
77.9
%
 
74.6
%
Core FFO(6) 
65.7
%
 
71.2
%
 
68.7
%
 
73.4
%
AFFO(6) 
92.3
%
 
79.0
%
 
78.2
%
 
78.0
%
__________
(1)
Includes 100% of unconsolidated properties except those held through CBRE Strategic Partners Asia.
(2)
Includes pro rata share of unconsolidated properties except those held through CBRE Strategic Partners Asia.
(3)
Average percentage leased is weighted based on net rentable square feet.
(4)
Refer to page 37 for a reconciliation of Net Income to Consolidated Net Operating Income.
(5)
Refer to page 38 for a reconciliation of Net Income to Adjusted EBITDA.
(6)
Refer to page 9 for a reconciliation of GAAP Net Income to FFO, Core FFO and AFFO.


Supplemental Information | Third Quarter 2015 | 6



CHAMBERS STREET PROPERTIES
Consolidated Balance Sheets
($ in Thousands, Except Share Data)

 
September 30,
2015
 
June 30,
2015
 
March 31,
2015
 
December 31,
2014
 
September 30,
2014
ASSETS
 
 
 
 
 
 
 
 
 
Investments in Real Estate:
 
 
 
 
 
 
 
 
 
Land
$
617,867

 
$
618,142

 
$
630,783

 
$
630,840

 
$
641,720

Land Available for Expansion
24,218

 
24,292

 
24,992

 
23,368

 
25,701

Buildings and Improvements
1,652,766

 
1,646,738

 
1,685,019

 
1,674,955

 
1,633,625

 
2,294,851

 
2,289,172

 
2,340,794

 
2,329,163

 
2,301,046

Less: Accumulated Depreciation and Amortization
(284,579
)
 
(266,256
)
 
(257,510
)
 
(239,973
)
 
(243,073
)
Net Investments in Real Estate
2,010,272

 
2,022,916

 
2,083,284

 
2,089,190

 
2,057,973

Investments in Unconsolidated Entities
385,220

 
393,325

 
394,738

 
423,693

 
460,211

Cash and Cash Equivalents
53,955

 
94,252

 
44,658

 
40,139

 
58,546

Restricted Cash
18,909

 
17,721

 
15,186

 
14,718

 
14,372

Tenant and Other Receivables, Net
11,553

 
8,360

 
11,676

 
11,216

 
14,147

Deferred Rent
45,072

 
42,644

 
41,071

 
39,429

 
40,123

Deferred Leasing Costs and Intangible Assets, Net
194,109

 
195,836

 
208,614

 
220,490

 
220,802

Deferred Financing Costs, Net
7,237

 
7,896

 
8,555

 
9,321

 
9,908

Prepaid Expenses and Other Assets
19,963

 
17,713

 
19,385

 
21,612

 
13,647

Total Assets
$
2,746,290

 
$
2,800,663

 
$
2,827,167

 
$
2,869,808

 
$
2,889,729


LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
 
LIABILITIES
 
 
 
 
 
 
 
 
 
Secured Notes Payable, Net
$
478,739

 
$
568,077

 
$
581,706

 
$
610,608

 
$
632,361

Unsecured Term Loan Facilities
570,000

 
570,000

 
570,000

 
570,000

 
570,000

Unsecured Revolving Credit Facility
290,044

 
240,044

 
235,044

 
200,044

 
170,044

Accounts Payable, Accrued Expenses and Other Liabilities
86,352

 
68,861

 
74,786

 
76,421

 
57,587

Intangible Liabilities, Net
21,759

 
22,869

 
25,067

 
26,248

 
26,988

Prepaid Rent and Security Deposits
16,255

 
15,987

 
16,939

 
15,569

 
15,918

Distributions Payable
10,117

 
10,096

 
10,075

 
9,951

 
9,951

Total Liabilities
1,473,266

 
1,495,934

 
1,513,617

 
1,508,841

 
1,482,849

COMMITMENTS AND CONTINGENCIES
 
 
 
 
 
 
 
 
 
SHAREHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
 
Common Shares of Beneficial Interest, $0.01 par value, 990,000,000 shares authorized
2,366

 
2,366

 
2,366

 
2,364

 
2,362

Additional Paid-in-Capital
2,074,326

 
2,073,701

 
2,073,109

 
2,071,526

 
2,069,710

Accumulated Deficit
(758,611
)
 
(734,416
)
 
(713,877
)
 
(689,654
)
 
(651,909
)
Accumulated Other Comprehensive Loss
(45,057
)
 
(36,922
)
 
(48,048
)
 
(23,269
)
 
(13,283
)
Total Shareholders’ Equity
1,273,024

 
1,304,729

 
1,313,550

 
1,360,967

 
1,406,880

Total Liabilities and Shareholders’ Equity
$
2,746,290

 
$
2,800,663

 
$
2,827,167

 
$
2,869,808

 
$
2,889,729



Supplemental Information | Third Quarter 2015 | 7



CHAMBERS STREET PROPERTIES
Consolidated Statements of Operations
For the Three and Nine Months Ended September 30, 2015 and 2014 (unaudited)
($ in Thousands, Except Share Data)
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2015
 
2014
 
2015
 
2014
REVENUES
 
 
 
 
 
 
 
Rental
$
54,915

 
$
52,391

 
$
166,020

 
$
156,300

Tenant Reimbursements
15,646

 
15,219

 
46,917

 
45,034

Other Property Income
1,072

 
537

 
1,520

 
1,606

Total Revenues
71,633

 
68,147

 
214,457

 
202,940

EXPENSES
 
 
 
 
 
 
 
Property Operating
8,488

 
9,113

 
26,404

 
27,058

Real Estate Taxes
10,694

 
9,927

 
32,050

 
30,193

General and Administrative
9,935

 
7,230

 
31,505

 
20,047

Acquisition-Related

 
265

 

 
555

Depreciation and Amortization
28,489

 
27,208

 
84,342

 
81,572

Total Expenses
57,606

 
53,743

 
174,301

 
159,425

Income Before Other (Expenses) Income
14,027

 
14,404

 
40,156

 
43,515

OTHER EXPENSES AND INCOME
 
 
 
 
 
 
 
Interest and Other Income
52

 
255

 
144

 
573

Interest Expense
(12,352
)
 
(13,685
)
 
(38,397
)
 
(41,653
)
Interest Expense and Net Change in Fair Value of Non-Qualifying Derivative Financial Instruments
23

 
68

 
66

 
80

Gain on Sale of Real Estate

 
13,175

 
5,844

 
13,175

Total Other Expenses
(12,277
)
 
(187
)
 
(32,343
)
 
(27,825
)
Income Before Provision for Income Taxes and Equity in Income of Unconsolidated Entities
1,750

 
14,217

 
7,813

 
15,690

Benefit (Provision) For Income Taxes
42

 
(140
)
 
(521
)
 
(579
)
Equity in Income of Unconsolidated Entities
4,238

 
4,391

 
14,419

 
11,829

NET INCOME
$
6,030

 
$
18,468

 
$
21,711

 
$
26,940

Basic and Diluted Net Income Per Share Attributable to Common Shareholders
$
0.03

 
$
0.08

 
$
0.09

 
$
0.11

Weighted Average Common Shares Outstanding - Basic
236,902,841

 
236,954,218

 
236,915,614

 
236,847,551

Weighted Average Common Shares Outstanding - Diluted
236,913,294

 
236,954,218

 
236,951,537

 
236,847,551

Dividends Declared per Common Share
$
0.128

 
$
0.126

 
$
0.384

 
$
0.378



Supplemental Information | Third Quarter 2015 | 8



CHAMBERS STREET PROPERTIES
Reconciliation of Net Income to FFO, Core FFO and AFFO
For the Three and Nine Months Ended September 30, 2015 and 2014 (unaudited)
($ in Thousands, Except Share Data)
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2015
 
2014
 
2015
 
2014
Net Income
$
6,030

 
$
18,468

 
$
21,711

 
$
26,940

Real Estate Depreciation and Amortization
28,350

 
27,090

 
83,924

 
81,231

Pro Rata Share of Real Estate Depreciation and Amortization from Unconsolidated Entities
6,266

 
8,163

 
19,408

 
25,172

Gain on Sale of Real Estate

 
(13,175
)
 
(5,844
)
 
(13,175
)
Pro Rata Share of Loss (Gain) on Sale of Real Estate from Unconsolidated Entities
116

 

 
(2,315
)
 

Pro Rata Share of Realized Loss (Gain) on Investment in CBRE Strategic Partners Asia
209

 
(123
)
 
(552
)
 
(123
)
Funds from Operations
40,971

 
40,423

 
116,332

 
120,045

Acquisition-Related Expenses

 
265

 

 
555

Pro Rata Share of Loss on Early Extinguishment of Debt from Unconsolidated Entities

 

 
58

 

Strategic Planning and Severance-Related Expense
4,916

 
1,312

 
14,736

 
1,312

Net Change in Fair Value of Non-Qualifying Derivative Financial Instruments
(23
)
 
(68
)
 
(66
)
 
(80
)
Pro Rata Share of Unrealized Loss (Gain) on Investment in CBRE Strategic Partners Asia
86

 
(2
)
 
829

 
117

Core Funds from Operations
45,950

 
41,930

 
131,889

 
121,949

Amortization of Non-Cash Interest Expense
(829
)
 
(312
)
 
(1,656
)
 
(660
)
Pro Rata Share of Amortization of Non-Cash Interest Expense from Unconsolidated Entities
89

 
117

 
287

 
354

Amortization of Above and Below Market Leases
1,019

 
1,173

 
2,932

 
4,056

Pro Rata Share of Amortization of Above/Below Market Leases from Unconsolidated Entities
(34
)
 
(54
)
 
(130
)
 
(162
)
Amortization of Deferred Revenue Related to Tenant Improvements
(112
)
 
(272
)
 
(339
)
 
(747
)
Share Based Compensation
655

 
816

 
1,982

 
2,740

Straight-Line Rent Adjustments, Net
(2,444
)
 
(2,096
)
 
(5,847
)
 
(4,641
)
Pro Rata Share of Straight-Line Rent Adjustments, Net from Unconsolidated Entities
274

 
296

 
899

 
1,026

Recurring Capital Expenditures
(11,823
)
 
(3,401
)
 
(13,138
)
 
(8,319
)
Pro Rata Share of Recurring Capital Expenditures from Unconsolidated Entities
(29
)
 
(394
)
 
(1,049
)
 
(754
)
Adjusted Funds from Operations
$
32,716

 
$
37,803

 
$
115,830

 
$
114,842

Amounts Per Share (Basic and Diluted):
 
 
 
 
 
 
 
Net Income
$
0.03

 
$
0.08

 
$
0.09

 
$
0.11

Funds from Operations
$
0.17

 
$
0.17

 
$
0.49

 
$
0.51

Core Funds from Operations
$
0.19

 
$
0.18

 
$
0.56

 
$
0.51

Adjusted Funds from Operations
$
0.14

 
$
0.16

 
$
0.49

 
$
0.48

Weighted Average Common Shares Outstanding - Basic 
236,902,841

 
236,954,218

 
236,915,614

 
236,847,551

Weighted Average Common Shares Outstanding - Diluted
236,913,294

 
236,954,218

 
236,951,537

 
236,847,551



Supplemental Information | Third Quarter 2015 | 9



CHAMBERS STREET PROPERTIES
Joint Venture Information
As of September 30, 2015
($ and Square Footage Amounts in Thousands)
 
Duke JV
 
European JV
 
UK JV
Number of Properties:
 
 
 
 
 
Industrial
7

 
9

 
3

Office
6

 

 

Total Number of Properties
13

 
9

 
3

Percent Leased
99.9
%
 
100.0
%
 
100.0
%
Square Feet:


 


 


Industrial
6,120

 
4,966

 
542

Office
667

 

 

Total Square Feet
6,787

 
4,966

 
542

Company Effective Ownership Percentage
80.0
%
 
80.0
%
 
80.0
%
Balance Sheet Information(1)
 
 
 
 
 
Net Investments in Real Estate
$
312,494

 
$
248,204

 
$
37,193

Other Assets
28,523

 
40,130

 
3,649

Total Assets
$
341,017

 
$
288,334

 
$
40,842

Secured Notes Payable
$
56,390

 
$
124,884

 
$

Other Liabilities
8,025

 
4,531

 
1,873

Equity
276,602

 
158,919

 
38,969

Total Liabilities and Equity
$
341,017

 
$
288,334

 
$
40,842

Income Statement Information(1)
 
 
 
 
 
 
 
Duke JV
 
European JV
 
UK JV
 
Three Months Ended
 
Three Months Ended
 
Three Months Ended
 
September 30,
 
September 30,
 
September 30,
 
2015
 
2014
 
2015
 
2014
 
2015
 
2014
Total Revenue
$
12,016

 
$
14,331

 
$
6,515

 
$
7,114

 
$
1,147

 
$
1,234

Operating Expenses
3,106

 
3,980

 
1,170

 
722

 
243

 
250

Net Operating Income
8,910

 
10,351

 
5,345

 
6,392

 
904

 
984

Depreciation and Amortization
4,960

 
6,611

 
2,383

 
3,061

 
490

 
532

Interest
751

 
1,031

 
946

 
1,139

 

 

Gain on Sale of Real Estate
(145
)
 

 

 

 

 

Net Income
3,054

 
2,709

 
2,016

 
2,192

 
414

 
452

Company's Share in Net Income
2,443

 
2,168

 
1,613

 
1,754

 
331

 
362

Adjustments for REIT Basis
(26
)
 
(21
)
 

 

 

 

Company's Equity in Net Income
$
2,417

 
$
2,147

 
$
1,613

 
$
1,754

 
$
331

 
$
362

__________
(1)
Includes 100% of unconsolidated properties held through our Duke JV, European JV, and UK JV.


Supplemental Information | Third Quarter 2015 | 10



CHAMBERS STREET PROPERTIES
Consolidated and Pro Rata Share Balance Sheets
As of September 30, 2015 and December 31, 2014
(In Thousands)
 
September 30, 2015
 
December 31, 2014
 
Consolidated
 
Pro Rata
Share of
Joint
Ventures(1)
 
Total at
Pro Rata
Share
 
Consolidated
 
Pro Rata
Share of
Joint
Ventures
(1)
 
Total at
Pro Rata
Share
Assets
 
 
 
 


 
 
 
 
 

Real Estate Net
$
2,010,272

 
$
478,312

 
$
2,488,584

 
$
2,089,190

 
$
509,089

 
$
2,598,279

Real Estate Investments and Other Assets Held-for-Sale

 

 

 

 
13,784

 
13,784

Other Assets
350,798

 
57,842

 
408,640

 
356,925

 
69,340

 
426,265

Investments in Unconsolidated Entities
385,220

 
(380,026
)
 
5,194

 
423,693

 
(416,823
)
 
6,870

Total Assets
$
2,746,290

 
$
156,128

 
$
2,902,418

 
$
2,869,808

 
$
175,390

 
$
3,045,198

Liabilities and Equity
 
 
 
 

 
 
 
 
 

Liabilities Related to Real Estate Investments Held-for-Sale
$

 
$

 
$

 
$

 
$
8,838

 
$
8,838

Total Debt
1,338,783

 
145,019

 
1,483,802

 
1,380,652

 
153,916

 
1,534,568

Other Liabilities
134,483

 
11,109

 
145,592

 
128,189

 
12,636

 
140,825

Total Liabilities
1,473,266

 
156,128

 
1,629,394

 
1,508,841

 
175,390

 
1,684,231

Shareholders’ Equity
1,273,024

 

 
1,273,024

 
1,360,967

 

 
1,360,967

Total Liabilities and Equity
$
2,746,290

 
$
156,128

 
$
2,902,418

 
$
2,869,808

 
$
175,390

 
$
3,045,198

__________
(1)
Includes Duke JV, European JV, and UK JV.



Supplemental Information | Third Quarter 2015 | 11



CHAMBERS STREET PROPERTIES
Consolidated and Pro Rata Share Net Operating Income
For the Three and Nine Months Ended September 30, 2015 and 2014 (unaudited)
(In Thousands)
 
Three Months Ended September 30, 2015
 
Three Months Ended September 30, 2014
 
Consolidated
 
Pro Rata
Share of
Joint
Ventures
 
Total at
Pro Rata
Share
 
Consolidated
 
Pro Rata
Share of
Joint
Ventures
 
Total at
Pro Rata
Share
Total Revenues
$
71,633

 
$
15,743

 
$
87,376

 
$
68,147

 
$
18,143

 
$
86,290

Total Operating Expenses
19,182

 
3,615

 
22,797

 
19,040

 
3,962

 
23,002

Net Operating Income - GAAP Basis
52,451

 
12,128

 
64,579

 
49,107

 
14,181

 
63,288

Straight-Line Rent Adjustment, Net
(2,444
)
 
274

 
(2,170
)
 
(2,096
)
 
296

 
(1,800
)
Above/Below Market Lease Amortization, Net
1,019

 
(34
)
 
985

 
1,173

 
(54
)
 
1,119

Net Operating Income - Cash Basis
$
51,026

 
$
12,368

 
$
63,394

 
$
48,184

 
$
14,423

 
$
62,607

Interest Expense
$
12,352

 
$
1,358

 
$
13,710

 
$
13,685

 
$
1,736

 
$
15,421

 
Nine Months Ended September 30, 2015
 
Nine Months Ended September 30, 2014
 
Consolidated
 
Pro Rata
Share of
Joint
Ventures
 
Total at
Pro Rata
Share
 
Consolidated
 
Pro Rata
Share of
Joint
Ventures
 
Total at
Pro Rata
Share
Total Revenues
$
214,457

 
$
46,654

 
$
261,111

 
$
202,940

 
$
55,631

 
$
258,571

Total Operating Expenses
58,454

 
10,616

 
69,070

 
57,251

 
13,303

 
70,554

Net Operating Income - GAAP Basis
156,003

 
36,038

 
192,041

 
145,689

 
42,328

 
188,017

Straight-line Rent Adjustment, Net
(5,847
)
 
899

 
(4,948
)
 
(4,641
)
 
1,026

 
(3,615
)
Above/Below Market Lease Amortization, Net
2,932

 
(130
)
 
2,802

 
4,056

 
(162
)
 
3,894

Net Operating Income - Cash Basis
$
153,088

 
$
36,807

 
$
189,895

 
$
145,104

 
$
43,192

 
$
188,296

Interest Expense
$
38,397

 
$
4,096

 
$
42,493

 
$
41,653

 
$
5,235

 
$
46,888




Supplemental Information | Third Quarter 2015 | 12


CHAMBERS STREET PROPERTIES
Same Property Statistics
As of September 30, 2015
($ in Thousands)



 
 
Nine Months Ended
 
 
September 30,
 
 
2015
 
2014
Total Portfolio Square Footage at Quarter End
 
37,193,495

 
36,281,879

Number of Properties at Quarter End
 
125

 
129

Same Property Portfolio Square Footage(1)
 
33,909,322

 
33,850,282

Same Property Portfolio Number of Buildings(1)
 
118

 
118

Percentage of Total Quarter Ending Square Footage
 
91.2
%
 
93.3
%
Same Property Portfolio % Leased at Quarter End
 
98.2
%
 
98.3
%
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2015
 
2014
 
2015
 
2014
Total Revenues
 
$
81,517

 
$
80,346

 
$
243,176

 
$
238,341

Total Operating Expenses
 
21,920

 
21,205

 
65,403

 
63,776

Net Operating Income - GAAP Basis
 
$
59,597

 
$
59,141

 
$
177,773

 
$
174,565

Less: Straight-Line Rent Revenue
 
(2,033
)
 
(1,681
)
 
(4,587
)
 
(4,124
)
Less: Above/Below Market Lease Revenue
 
1,028

 
1,247

 
2,990

 
3,974

Less: GAAP Adjustment - European properties
 

 

 

 
301

Net Operating Income - Cash Basis
 
$
58,592

 
$
58,707

 
$
176,176

 
$
174,114

Same Property Portfolio Weighted Average % Leased
 
98.9
%
 
97.4
%
 
99.1
%
 
96.9
%
__________
(1)
Our same property portfolio includes all consolidated and unconsolidated properties owned and operating as of January 1, 2014 and still owned and operating as of September 30, 2015. Revenue and expense from same unconsolidated properties are included at pro rata share. Square footage and number of buildings are at 100%.



Supplemental Information | Third Quarter 2015 | 13


CHAMBERS STREET PROPERTIES (continued)
Same Property Statistics
As of September 30, 2015
($ in Thousands)


 
Office(1)
 
Industrial(1)
 
Three Months Ended
 
$
Change
 
%
Change
 
Three Months Ended
 
$
Change
 
%
Change
 
Sep. 30, 2015
 
Sep. 30, 2014
 
 
 
Sep. 30, 2015
 
Sep. 30, 2014
 
 
Rental Revenue
$
39,300

 
$
38,062

 
 
 
 
 
$
24,631

 
$
24,852

 
 
 
 
Tenant Reimbursement
11,811

 
11,929

 
 
 
 
 
5,658

 
4,966

 
 
 
 
Other Property Income

 

 
 
 
 
 
117

 
537

 
 
 
 
Total Revenue
51,111

 
49,991

 
$
1,120

 
2.2
%
 
30,406

 
30,355

 
$
51

 
0.2
 %
Operating Expenses
7,922

 
8,238

 
 
 
 
 
2,543

 
2,412

 
 
 
 
Real Estate Taxes
7,412

 
6,792

 
 
 
 
 
4,043

 
3,763

 
 
 
 
Total Expenses
15,334

 
15,030

 
304

 
2.0
%
 
6,586

 
6,175

 
411

 
6.7
 %
Net Operating Income - GAAP Basis
$
35,777

 
$
34,961

 
$
816

 
2.3
%
 
$
23,820

 
$
24,180

 
$
(360
)
 
(1.5
)%
Rental Revenue - GAAP Basis
$
51,111

 
$
49,991

 
 
 
 
 
$
30,406

 
$
30,355

 
 
 
 
Less: Straight-Line Rent Revenue
(2,137
)
 
(1,663
)
 
 
 
 
 
104

 
(18
)
 
 
 
 
Less: Above/Below Lease Revenue
896

 
1,029

 
 
 
 
 
132

 
218

 
 
 
 
Rental Revenue - Cash Basis
49,870

 
49,357

 
513

 
1.0
%
 
30,642

 
30,555

 
87

 
0.3
 %
Less: Total Expenses
15,334

 
15,030

 
 
 
 
 
6,586

 
6,175

 
 
 
 
Net Operating Income - Cash Basis
$
34,536

 
$
34,327

 
$
209

 
0.6
%
 
$
24,056

 
$
24,380

 
$
(324
)
 
(1.3
)%
 
 
 
Total Same Properties(1)
 
Three Months Ended
 
$
Change
 
%
Change
 
Sep. 30, 2015
 
Sep. 30, 2014
 
 
Rental Revenue
$
63,931

 
$
62,914

 
 
 
 
Tenant Reimbursement
17,469

 
16,895

 
 
 
 
Other Property Income
117

 
537

 
 
 
 
Total Revenue
81,517

 
80,346

 
$
1,171

 
1.5
 %
Operating Expenses
10,465

 
10,650

 
 
 
 
Real Estate Taxes
11,455

 
10,555

 
 
 
 
Total Expenses
21,920

 
21,205

 
715

 
3.4
 %
Net Operating Income - GAAP Basis
$
59,597

 
$
59,141

 
$
456

 
0.8
 %
Rental Revenue - GAAP Basis
$
81,517

 
$
80,346

 
 
 
 
Less: Straight-Line Rent Revenue
(2,033
)
 
(1,681
)
 
 
 
 
Less: Above/Below Lease Revenue
1,028

 
1,247

 
 
 
 
Rental Revenue - Cash Basis
80,512

 
79,912

 
600

 
0.8
 %
Less: Total Expenses
21,920

 
21,205

 
715

 
3.4
 %
Net Operating Income - Cash Basis
$
58,592

 
$
58,707

 
$
(115
)
 
(0.2
)%
__________
(1)
Our same property portfolio includes all consolidated and unconsolidated properties owned as of January 1, 2014 and still owned as of September 30, 2015. Revenue and expense from same unconsolidated properties are included at pro rata share.


Supplemental Information | Third Quarter 2015 | 14


CHAMBERS STREET PROPERTIES (continued)
Same Property Statistics
As of September 30, 2015
($ in Thousands)


 
Office(1)
 
Industrial(1)
 
Nine Months Ended
 
$
Change
 
%
Change
 
Nine Months Ended
 
$
Change
 
%
Change
 
Sep. 30, 2015
 
Sep. 30, 2014
 
 
 
Sep. 30, 2015
 
Sep. 30, 2014
 
 
Rental Revenue
$
116,338

 
$
112,223

 
 
 
 
 
$
74,044

 
$
74,228

 
 
 
 
Tenant Reimbursement
34,341

 
33,897

 
 
 
 
 
17,061

 
16,387

 
 
 
 
Other Property Income
827

 
1,069

 
 
 
 
 
565

 
537

 
 
 
 
Total Revenue
151,506

 
147,189

 
$
4,317

 
2.9
%
 
91,670

 
91,152

 
$
518

 
0.6
%
Operating Expenses
24,010

 
23,727

 
 
 
 
 
7,778

 
8,059

 
 
 
 
Real Estate Taxes
21,412

 
20,195

 
 
 
 
 
12,203

 
11,795

 
 
 
 
Total Expenses
45,422

 
43,922

 
1,500

 
3.4
%
 
19,981

 
19,854

 
127

 
0.6
%
Net Operating Income - GAAP Basis
$
106,084

 
$
103,267

 
$
2,817

 
2.7
%
 
$
71,689

 
$
71,298

 
$
391

 
0.5
%
Rental Revenue - GAAP Basis
$
151,506

 
$
147,189

 
 
 
 
 
$
91,670

 
$
91,152

 
 
 
 
Less: Straight-Line Rent Revenue
(4,755
)
 
(4,015
)
 
 
 
 
 
168

 
(109
)
 
 
 
 
Less: Above/Below Lease Revenue
2,684

 
3,237

 
 
 
 
 
306

 
737

 
 
 
 
Rental Revenue - Cash Basis
149,435

 
146,411

 
3,024

 
2.1
%
 
92,144

 
91,780

 
364

 
0.4
%
Less: Total Expenses
45,422

 
43,922

 
 
 
 
 
19,981

 
19,854

 
 
 
 
Less: GAAP Adjustment - European Properties

 

 
 
 
 
 

 
301

 
 
 
 
Net Operating Income - Cash Basis
$
104,013

 
$
102,489

 
$
1,524

 
1.5
%
 
$
72,163

 
$
71,625

 
$
538

 
0.8
%
 
 
 
Total Same Properties(1)
 
Nine Months Ended
 
$
Change
 
%
Change
 
Sep. 30, 2015
 
Sep. 30, 2014
 
 
Rental Revenue
$
190,382

 
$
186,451

 
 
 
 
Tenant Reimbursement
51,402

 
50,284

 
 
 
 
Other Property Income
1,392

 
1,606

 
 
 
 
Total Revenue
243,176

 
238,341

 
$
4,835

 
2.0
%
Operating Expenses
31,788

 
31,786

 
 
 
 
Real Estate Taxes
33,615

 
31,990

 
 
 
 
Total Expenses
65,403

 
63,776

 
1,627

 
2.6
%
Net Operating Income - GAAP Basis
$
177,773

 
$
174,565

 
$
3,208

 
1.8
%
Rental Revenue - GAAP Basis
$
243,176

 
$
238,341

 
 
 
 
Less: Straight-Line Rent Revenue
(4,587
)
 
(4,124
)
 
 
 
 
Less: Above/Below Lease Revenue
2,990

 
3,974

 
 
 
 
Rental Revenue - Cash Basis
241,579

 
238,191

 
3,388

 
1.4
%
Less: Total Expenses
65,403

 
63,776

 
1,627

 
2.6
%
Less: GAAP Adjustment - European Properties

 
301

 
 
 
 
Net Operating Income - Cash Basis
$
176,176

 
$
174,114

 
$
2,062

 
1.2
%
__________
(1)
Our same property portfolio includes all consolidated and unconsolidated properties owned as of January 1, 2014 and still owned as of September 30, 2015. Revenue and expense from same unconsolidated properties are included at pro rata share.



Supplemental Information | Third Quarter 2015 | 15



CHAMBERS STREET PROPERTIES
Portfolio Summary
As of September 30, 2015
($ in Thousands)
Property Types
 
 
 
 
 
 
 
 
 
Consolidated Properties
 
Unconsolidated Properties(1)
 
Consolidated & Unconsolidated
Properties
(1)
 
 
Properties
 
Net
Rentable
Square
Feet
 
% of QTD NOI
 
Properties
 
Net
Rentable
Square
Feet
 
% of QTD NOI
 
Properties
 
Net
Rentable
Square
Feet
 
% of QTD NOI
Industrial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Triple Net Single-Tenant
 
47

 
15,180,853

 
31.2
%
 
18

 
11,184,416

 
74.6
%
 
65

 
26,365,269

 
39.4
%
Multi-Tenant
 
10

 
2,097,934

 
3.7
%
 
1

 
442,816

 
3.7
%
 
11

 
2,540,750

 
3.7
%
Other Single-Tenant
 
2

 
432,543

 
0.6
%
 

 

 
%
 
2

 
432,543

 
0.5
%
Total Industrial
 
59

 
17,711,330

 
35.5
%
 
19

 
11,627,232

 
78.3
%
 
78

 
29,338,562

 
43.6
%
Office
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Triple Net Single-Tenant
 
29

 
5,091,075

 
45.9
%
 
2

 
277,325

 
8.1
%
 
31

 
5,368,400

 
38.8
%
Multi-Tenant
 
7

 
1,551,768

 
13.1
%
 
3

 
293,063

 
10.1
%
 
10

 
1,844,831

 
12.5
%
Other Single-Tenant
 
5

 
545,527

 
5.5
%
 
1

 
96,175

 
3.5
%
 
6

 
641,702

 
5.1
%
Total Office
 
41

 
7,188,370

 
64.5
%
 
6

 
666,563

 
21.7
%
 
47

 
7,854,933

 
56.4
%
All Properties
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Triple Net Single-Tenant
 
76

 
20,271,928

 
77.1
%
 
20

 
11,461,741

 
82.7
%
 
96

 
31,733,669

 
78.2
%
Multi-Tenant
 
17

 
3,649,702

 
16.8
%
 
4

 
735,879

 
13.8
%
 
21

 
4,385,581

 
16.2
%
Other Single-Tenant
 
7

 
978,070

 
6.1
%
 
1

 
96,175

 
3.5
%
 
8

 
1,074,245

 
5.6
%
Total Properties
 
100

 
24,899,700

 
100.0
%
 
25

 
12,293,795

 
100.0
%
 
125

 
37,193,495

 
100.0
%
__________
(1)
Includes unconsolidated properties held through our Duke JV, European JV and UK JV. Net rentable square feet is at 100% and NOI percentage is at our pro rata share of effective ownership.





Supplemental Information | Third Quarter 2015 | 16



CHAMBERS STREET PROPERTIES (continued)
Portfolio Summary
As of September 30, 2015
($ in Thousands)
Tenant Credit Ratings
 
 
 
 
 
 
 
 
Annualized Base Rent(1)
 
% of Total Annualized
Base Rent
 
 
Investment Grade Rated Tenants(2)
$
145,552

 
53.8
%
Non-Investment Grade Rated Tenants(3) 
25,430

 
9.4
%
Unrated
99,785

 
36.8
%
 
$
270,767

 
100.0
%
__________
(1)
Annualized base rent for unconsolidated properties is at our pro rata share of effective ownership. Includes consolidated and unconsolidated properties.
(2)
We define Investment Grade Rated Tenant as a tenant, or whose guarantor or parent company, that has an investment grade credit rating as determined by either Standard and Poor's or Moody's.
(3)
We define Non-Investment Grade Rated Tenant as a tenant, or whose guarantor or parent company, that has a non-investment grade credit rating as determined by either Standard and Poor's or Moody's.


Scheduled Rental Increases
 
 
 
 
 
 
 
 
 
Net Rentable
Square Feet(1)
 
% of Total Net
Rentable Square Feet
 
Annualized Base Rent(1)
 
% of Total
Annualized Base Rent
Fixed Rental Increases(2)
29,297,093

 
80.1
%
 
$
229,997

 
84.9
%
Indexed Rental Increases(3)
6,062,553

 
16.6
%
 
33,307

 
12.3
%
Constant Rent
1,211,940

 
3.3
%
 
7,463

 
2.8
%
All Leases
36,571,586

 
100.0
%
 
$
270,767

 
100.0
%
__________
(1)
Net rentable square feet for unconsolidated properties is at 100%. Annualized base rent for unconsolidated properties is at our pro rata share of effective ownership. Includes consolidated and unconsolidated properties.
(2)
Includes certain leases that were subject to historical rental increases.
(3)
Indexed rental increases are generally based upon inflation or market rents.


Supplemental Information | Third Quarter 2015 | 17



CHAMBERS STREET PROPERTIES
Acquisition and Disposition Activity
As of September 30, 2015
($ in Thousands)
2015 Wholly-Owned Acquisitions
 
 
 
 
 
 
 
 
 
Property
 
Market
 
Date of
Acquisition
 
Purchase
Price
 
Net
Rentable
Square Feet
 
 
 
 
Goodyear Crossing II (Land Parcel)(1) 
 
Phoenix
 
AZ
 
2/10/2015
 
$
1,675

 
N/A
__________
(1)
During February 2015, we acquired an 11.8 acre undeveloped parcel in Goodyear, Arizona for a price of $1.7 million, which has been included as part of our Goodyear Crossing II property located in the Phoenix, Arizona market.
2015 Disposition of Properties
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property
 
Market
 
Date of Disposition
 
Gross Sales Price at Pro Rata Share
 
Net
Rentable
Square Feet
 
Ownership
Percentage
 
Capitalization Rates
 
 
 
 
 
 
In-Place
 
Straight Line
Regency Creek I
 
Raleigh
 
NC
 
1/23/2015
 
$
16,440

 
122,087

 
80.0
%
 
10.9
%
 
10.0
%
300 Constitution Drive(1)
 
Boston
 
MA
 
5/19/2015
 
20,327

 
330,000

 
100.0
%
 
N/A

 
N/A

225 Summit Ave
 
Northern
 
NJ
 
6/26/2015
 
37,000

 
142,500

 
100.0
%
 
9.82
%
 
9.82
%
 
 
 
 
 
 
 
 
$
73,767

 
594,587

 
 
 
 
 
 
__________
(1)
This property was vacant at the time of sale and therefore does not have any capitalization rates associated with it.
2014 Wholly-Owned Acquisitions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property
 
Market
 
Date of
Acquisition
 
Purchase
Price
 
Net
Rentable
Square Feet
 
Capitalization Rates
 
 
 
 
 
In-Place
 
Straight
Line
445 Airtech Parkway
 
Indianapolis
 
IN
 
1/2/2014
 
$
30,200

 
622,440

 
6.3
%
 
 
6.7
%
 
1 Rocket Road
 
Los Angeles - South Bay
 
CA
 
7/31/2014
 
46,650

 
514,753

 
6.7
%
 
 
7.7
%
 
1659 Sauget Business Blvd
 
St. Louis
 
MO
 
10/24/2014
 
21,100

 
502,500

 
7.6
%
 
 
7.7
%
 
325 Center Point Blvd
 
Northeast
 
PA
 
11/18/2014
 
45,750

 
744,080

 
 
 
 
 
 
550 Oak Ridge Drive
 
Northeast
 
PA
 
11/18/2014
 
40,700

 
615,600

 
 
 
 
 
 
125 Capital Road
 
Northeast
 
PA
 
11/18/2014
 
8,700

 
144,000

 
 
 
 
 
 
14-46 Alberigi Drive
 
Northeast
 
PA
 
11/18/2014
 
10,500

 
140,800

 
7.6
%
(1) 
 
7.8
%
(1) 
Total Wholly-Owned Acquisitions
 
$
203,600

 
3,284,173

 
 
 
 
 
 
__________
(1)
Capitalization rate for the four industrial properties acquired in November 2014.
2014 Disposition of Properties
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property
 
Market
 
Date of Disposition
 
Gross Sales Price at Pro Rata Share
 
Net Rentable
Square Feet
 
Ownership
Percentage
 
Capitalization Rates
 
 
 
 
 
 
In-Place
 
Straight Line
One Conway Park
 
Chicago
 
IL
 
1/16/2014
 
$
10,480

 
105,000

 
80.0
%
 
7.5
%
 
4.6
%
Maskew Retail Park
 
Peterborough
 
UK
 
7/23/2014
 
62,978

 
144,400

 
100.0
%
 
6.6
%
 
6.4
%
12650 Ingenuity Drive
 
Orlando
 
FL
 
11/18/2014
 
26,500

 
124,500

 
100.0
%
 
9.1
%
 
8.6
%
Thames Valley Five
 
Reading
 
UK
 
11/24/2014
 
18,781

 
40,468

 
100.0
%
 
6.5
%
 
7.2
%
Sam Houston Crossing I
 
Houston
 
TX
 
12/5/2014
 
26,240

 
159,175

 
80.0
%
 
8.4
%
 
7.9
%
One Easton Oval and Two Easton Oval
 
Columbus
 
OH
 
12/8/2014
 
20,680

 
253,705

 
80.0
%
 
8.1
%
 
7.0
%
Deerfield Commons
 
Atlanta
 
GA
 
12/16/2014
 
19,400

 
121,969

 
100.0
%
 
7.4
%
 
6.0
%
 
 
 
 
 
 
 
 
$
185,059

 
949,217

 
 
 
 
 
 


Supplemental Information | Third Quarter 2015 | 18


CHAMBERS STREET PROPERTIES
Our Properties
As of September 30, 2015
($ in Thousands)

Property and Market
 
Date
Acquired
 
Year
Built
 
Net
Rentable
Square Feet
 
Percentage
Leased
 
Approximate Total
Acquisition Cost(1)
 
 
 
 
 
 
 
 
 
 
 
 
Industrial
 
 
 
 
 
 
 
 
 
 
 
Consolidated Industrial
 
 
 
 
 
 
 
 
 
 
 
505 Century Parkway(2)
Dallas, TX
 
1/9/2006
 
1997
 
100,000

 
100.0
%
 
$
6,095

631 International Parkway(2)
Dallas, TX
 
1/9/2006
 
1998
 
73,112

 
100.0
%
 
5,407

660 North Dorothya(2)
Dallas, TX
 
1/9/2006
 
1997
 
120,000

 
100.0
%
 
6,836

Bolingbrook Point III(2)
Chicago, IL
 
8/29/2007
 
2006
 
185,045

 
100.0
%
 
18,170

Community Cash Complex 1(2)
Spartanburg, SC
 
8/30/2007
 
1960
 
207,038

 
74.0
%
 
2,690

Community Cash Complex 2(2)
Spartanburg, SC
 
8/30/2007
 
1978
 
145,058

 
100.0
%
 
2,225

Community Cash Complex 3(2)
Spartanburg, SC
 
8/30/2007
 
1981
 
116,413

 
52.0
%
 
1,701

Community Cash Complex 4(2)
Spartanburg, SC
 
8/30/2007
 
1984
 
33,019

 
100.0
%
 
547

Community Cash Complex 5(2)
Spartanburg, SC
 
8/30/2007
 
1984
 
53,033

 
100.0
%
 
824

Fairforest Building 1(2)
Spartanburg, SC
 
8/30/2007
 
2000
 
51,028

 
100.0
%
 
2,974

Fairforest Building 2(2)(3)
Spartanburg, SC
 
8/30/2007
 
1999
 
104,160

 
100.0
%
 
5,379

Fairforest Building 3(2)(3)
Spartanburg, SC
 
8/30/2007
 
2000
 
100,000

 
100.0
%
 
5,760

Fairforest Building 4(2)
Spartanburg, SC
 
8/30/2007
 
2001
 
190,606

 
100.0
%
 
5,640

Fairforest Building 5(3)
Spartanburg, SC
 
8/30/2007
 
2006
 
316,491

 
100.0
%
 
16,968

Fairforest Building 6(3)
Spartanburg, SC
 
8/30/2007
 
2005
 
101,055

 
100.0
%
 
7,469

Fairforest Building 7(2)(3)
Spartanburg, SC
 
8/30/2007
 
2006
 
101,459

 
100.0
%
 
5,626

Greenville/Spartanburg Industrial Park(2)
Spartanburg, SC
 
8/30/2007
 
1990
 
67,375

 
100.0
%
 
3,388

Highway 290 Commerce Park  Building 1(2)
Spartanburg, SC
 
8/30/2007
 
1995
 
150,000

 
100.0
%
 
5,388

Highway 290 Commerce Park Building 5(2)
Spartanburg, SC
 
8/30/2007
 
1993
 
30,000

 
100.0
%
 
1,420

Highway 290 Commerce Park Building 7(2)
Spartanburg, SC
 
8/30/2007
 
1994
 
93,971

 
100.0
%
 
4,889

HJ Park Building 1(2)
Spartanburg, SC
 
8/30/2007
 
2003
 
70,000

 
100.0
%
 
4,216

Jedburg Commerce Park(2)(3)
Charleston, SC
 
8/30/2007
 
2007
 
512,686

 
88.0
%
 
41,991

Kings Mountain I(3)
Charlotte, NC
 
8/30/2007
 
1998
 
100,000

 
100.0
%
 
5,497

Kings Mountain II(3)
Charlotte, NC
 
8/30/2007
 
2002
 
301,400

 
100.0
%
 
11,311

Mount Holly Building
Charleston, SC
 
8/30/2007
 
2003
 
100,823

 
100.0
%
 
6,208

North Rhett I
Charleston, SC
 
8/30/2007
 
1973
 
284,750

 
100.0
%
 
10,302

North Rhett II
Charleston, SC
 
8/30/2007
 
2001
 
101,705

 
100.0
%
 
7,073

North Rhett III(2)(3)
Charleston, SC
 
8/30/2007
 
2002
 
79,972

 
100.0
%
 
4,812

North Rhett IV(3)
Charleston, SC
 
8/30/2007
 
2005
 
316,040

 
100.0
%
 
17,060

Orangeburg Park Building(3)
Charleston, SC
 
8/30/2007
 
2003
 
101,055

 
100.0
%
 
5,474

Orchard Business Park 2(2)
Spartanburg, SC
 
8/30/2007
 
1993
 
17,500

 
—%

 
761

Union Cross Building I
Winston-Salem, NC
 
8/30/2007
 
2005
 
100,853

 
100.0
%
 
6,585

Union Cross Building II
Winston-Salem, NC
 
8/30/2007
 
2005
 
316,130

 
100.0
%
 
17,216

Highway 290 Commerce Park Building 2(2)(3)
Spartanburg, SC
 
9/24/2007
 
1995
 
100,000

 
100.0
%
 
4,626

Highway 290 Commerce Park Building 6(2)(3)
Spartanburg, SC
 
11/1/2007
 
1996
 
105,000

 
100.0
%
 
3,760

Kings Mountain III(2)(3)
Charlotte, NC
 
3/14/2008
 
2007
 
541,910

 
100.0
%
 
25,728

13201 Wilfred Lane(2)
Minneapolis, MN
 
6/29/2009
 
1999
 
335,400

 
—%

 
15,340

140 Depot Street(2)
Boston, MA
 
7/31/2009
 
2009
 
238,370

 
100.0
%
 
18,950

West Point Trade Center(2)
Jacksonville, FL
 
12/30/2009
 
2009
 
601,500

 
100.0
%
 
29,000

1985 International Way
Cincinnati, OH
 
10/27/2010
 
1998
 
189,400

 
100.0
%
 
14,800

3660 Deerpark Boulevard(3)
Jacksonville, FL
 
10/27/2010
 
2002
 
321,500

 
100.0
%
 
15,300

4701 Gold Spike Drive
Dallas, TX
 
10/27/2010
 
2002
 
420,360

 
100.0
%
 
20,300

Tolleson Commerce Park II
Phoenix, AZ
 
10/27/2010
 
1999
 
217,422

 
100.0
%
 
9,200



Supplemental Information | Third Quarter 2015 | 19


CHAMBERS STREET PROPERTIES (continued)
Our Properties
As of September 30, 2015
($ in Thousands)

Property and Market
 
Date
Acquired
 
Year
Built
 
Net
Rentable
Square Feet
 
Percentage
Leased
 
Approximate Total
Acquisition Cost(1)
 
 
 
 
 
 
 
 
 
 
 
 
Millers Ferry Road(2)
Dallas, TX
 
6/2/2011
 
2011
 
1,020,000

 
100.0
%
 
40,366

Aurora Commerce Center(2)
Denver, CO
 
11/30/2011
 
2007
 
406,959

 
100.0
%
 
24,500

2400 Dralle Road(2)(3)
Chicago, IL
 
3/20/2012
 
2011
 
1,350,000

 
100.0
%
 
64,250

Midwest Commerce Center I(2)(3)
Kansas City, KS
 
8/16/2012
 
2009
 
1,107,000

 
100.0
%
 
62,950

20000 S Diamond Lake Rd.
Minneapolis, MN
 
11/7/2012
 
2004
 
280,577

 
100.0
%
 
18,500

Gateway at Riverside(2)(3)
Baltimore, MD
 
11/30/2012
 
1991
 
800,798

 
100.0
%
 
49,229

Mid-Atlantic Distribution Center – Bldg. A(2)
Baltimore, MD
 
12/28/2012
 
2008
 
672,000

 
100.0
%
 
43,150

Goodyear Crossing II(2)(4)
Phoenix, AZ
 
3/1/2013
 
2009
 
820,384

 
100.0
%
 
66,558

1200 Woods Chapel Road(2)(3)
Spartanburg, SC
 
8/8/2013
 
2008
 
156,800

 
100.0
%
 
10,750

445 Airtech Parkway(2)(3)
Indianapolis, IN
 
1/2/2014
 
2013
 
622,440

 
100.0
%
 
30,200

1 Rocket Road
Los Angeles - South Bay, CA
 
7/31/2014
 
2008
 
514,753

 
100.0
%
 
46,650

1659 Sauget Business Blvd(2)
St. Louis, MO
 
10/24/2014
 
2008
 
502,500

 
100.0
%
 
21,100

325 Centerpoint Blvd(2)
Northeast, PA
 
11/18/2014
 
2008
 
744,080

 
100.0
%
 
45,750

550 Oak Ridge Drive(2)
Northeast, PA
 
11/18/2014
 
2005
 
615,600

 
100.0
%
 
40,700

125 Capital Road(2)
Northeast, PA
 
11/18/2014
 
2007
 
144,000

 
100.0
%
 
8,700

14-46 Alberigi Drive(2)
Northeast, PA
 
11/18/2014
 
2005
 
140,800

 
100.0
%
 
10,500

Total Consolidated Industrial(5)
 
2005
 
17,711,330

 
97.0
%
 
$
988,759

Unconsolidated Industrial
 
 
 
 
 
 
 
 
 
 
 
Buckeye Logistics Center(2)(7)
Phoenix, AZ
 
6/12/2008
 
2008
 
1,009,351

 
100.0
%
 
$
52,797

12200 President's Court(2)(7)
Jacksonville, FL
 
9/30/2008
 
2008
 
772,210

 
100.0
%
 
29,995

201 Sunridge Blvd.(2)(7)
Dallas, TX
 
9/30/2008
 
2008
 
822,550

 
100.0
%
 
25,690

AllPoints at Anson Bldg. 1(2)(7)
Indianapolis, IN
 
9/30/2008
 
2008
 
1,036,573

 
100.0
%
 
42,684

125 Enterprise Parkway(2)(7)
Columbus, OH
 
12/10/2008
 
2008
 
1,142,400

 
100.0
%
 
38,088

AllPoints Midwest Bldg. 1(2)(7)
Indianapolis, IN
 
12/10/2008
 
2008
 
1,200,420

 
100.0
%
 
41,428

Fairfield Distribution Ctr. IX(7)
Tampa, FL
 
5/13/2009
 
2008
 
136,212

 
100.0
%
 
7,151

Amber Park(2)(8)
South Normanton, UK
 
6/10/2010
 
1997
 
208,423

 
100.0
%
 
12,514

Brackmills(2)(8)
Northampton, UK
 
6/10/2010
 
1984
 
186,618

 
100.0
%
 
13,407

Düren(2)(9)
Rhine-Ruhr, Germany
 
6/10/2010
 
2008
 
391,494

 
100.0
%
 
13,148

Schönberg(2)(9)
Hamburg, Germany
 
6/10/2010
 
2009
 
453,979

 
100.0
%
 
13,819

Langenbach(2)(9)
Munich, Germany
 
10/28/2010
 
2010
 
225,106

 
100.0
%
 
18,573

Graben Distribution Center I(9)
Munich, Germany
 
12/20/2011
 
2011
 
1,017,868

 
100.0
%
 
54,962

Graben Distribution Center II(9)
Munich, Germany
 
12/20/2011
 
2011
 
73,367

 
100.0
%
 
6,868

Valley Park, Unit D(2)(8)
Rugby, UK
 
3/19/2012
 
2011
 
146,491

 
100.0
%
 
10,247

Koblenz Distribution Center(9)
Rhine-Ruhr, Germany
 
12/12/2012
 
2012
 
1,070,126

 
100.0
%
 
63,021

Bodenheim Logistikzentrum(9)
Frankfurt, Germany
 
11/25/2013
 
2012
 
442,816

 
100.0
%
 
25,392

Hansalinie Distribution Center(9)
Bremen, Germany
 
11/25/2013
 
2012
 
320,463

 
100.0
%
 
24,226

Lille-Douai Distribution Center(9)
Lille, France
 
12/17/2013
 
2013
 
970,765

 
100.0
%
 
62,746

Total Unconsolidated Industrial(5)(6)
 
2009
 
11,627,232

 
100.0
%
 
$
556,756

Total Industrial(5)
 
2006
 
29,338,562

 
98.2
%
 
$
1,545,515



Supplemental Information | Third Quarter 2015 | 20


CHAMBERS STREET PROPERTIES (continued)
Our Properties
As of September 30, 2015
($ in Thousands)

Property and Market
 
Date
Acquired
 
Year
Built
 
Net
Rentable
Square Feet
 
Percentage
Leased
 
Approximate Total
Acquisition Cost(1)
 
 
 
 
 
 
 
 
 
 
 
 
Office
 
 
 
 
 
 
 
 
 
 
 
Consolidated Office
 
 
 
 
 
 
 
 
 
 
 
REMEC Corporate Campus 1(2)
San Diego, CA
 
9/15/2004
 
1983
 
34,000

 
100.0
%
 
$
6,833

REMEC Corporate Campus 2(2)
San Diego, CA
 
9/15/2004
 
1983
 
30,477

 
100.0
%
 
6,125

REMEC Corporate Campus 3(2)
San Diego, CA
 
9/15/2004
 
1983
 
37,430

 
100.0
%
 
7,523

REMEC Corporate Campus 4(2)
San Diego, CA
 
9/15/2004
 
1983
 
30,778

 
100.0
%
 
6,186

602 Central Boulevard(2)(3)
Coventry, UK
 
4/27/2007
 
2001
 
50,502

 
100.0
%
 
23,847

Lakeside Office Center(2)
Dallas, TX
 
3/5/2008
 
2006
 
98,750

 
100.0
%
 
17,994

Enclave on the Lake(2)
Houston, TX
 
7/1/2008
 
1999
 
171,091

 
100.0
%
 
37,827

Avion Midrise III(2)
Washington, DC Metro
 
11/18/2008
 
2002
 
71,507

 
100.0
%
 
21,111

Avion Midrise IV(2)
Washington, DC Metro
 
11/18/2008
 
2002
 
71,504

 
100.0
%
 
21,112

3011, 3055 & 3077 Comcast Place(2)
East Bay, CA
 
7/1/2009
 
1988
 
219,631

 
100.0
%
 
49,000

Crest Ridge Corporate Center I(2)
Minneapolis, MN
 
8/17/2009
 
2009
 
116,338

 
100.0
%
 
28,419

5160 Hacienda Dr(2)
East Bay, CA
 
4/8/2010
 
1988
 
201,620

 
100.0
%
 
38,500

10450 Pacific Center Court(2)(3)
San Diego, CA
 
5/7/2010
 
1985
 
134,000

 
100.0
%
 
32,750

One Wayside Road(2)
Boston, MA
 
6/24/2010
 
1998
 
200,605

 
100.0
%
 
55,525

100 Tice Blvd
Northern NJ
 
9/28/2010
 
2007
 
208,911

 
100.0
%
 
67,600

Ten Parkway North
Chicago, IL
 
10/12/2010
 
1999
 
99,566

 
100.0
%
 
25,000

Pacific Corporate Park(2)(3)
Washington, DC Metro
 
11/15/2010
 
2002
 
696,387

 
96.0
%
 
144,500

100 Kimball Drive(2)
Northern NJ
 
12/10/2010
 
2006
 
175,000

 
100.0
%
 
60,250

70 Hudson Street
New York City Metro
 
4/11/2011
 
2000
 
409,272

 
100.0
%
 
155,000

90 Hudson Street
New York City Metro
 
4/11/2011
 
1999
 
431,658

 
100.0
%
 
155,000

Sky Harbor Operations Center(2)
Phoenix, AZ
 
9/30/2011
 
2003
 
396,179

 
100.0
%
 
53,500

1400 Atwater Drive(2)(3)
Philadelphia, PA
 
10/27/2011
 
2013
 
299,809

 
100.0
%
 
82,224

Sabal Pavilion(2)
Tampa, FL
 
12/30/2011
 
1998
 
120,500

 
100.0
%
 
21,368

701 & 801 Charles Ewing Blvd.(2)
Princeton, NJ
 
12/28/2012
 
2009
 
110,765

 
100.0
%
 
28,310

1400 Perimeter Park Drive(2)
Raleigh, NC
 
3/1/2013
 
1991
 
44,916

 
100.0
%
 
6,165

22535 Colonial Pkwy(2)
Houston, TX
 
3/1/2013
 
2009
 
137,000

 
100.0
%
 
31,546

3900 North Paramount Parkway(2)
Raleigh, NC
 
3/1/2013
 
1999
 
100,987

 
100.0
%
 
18,523

3900 South Paramount Parkway(2)
Raleigh, NC
 
3/1/2013
 
1999
 
119,170

 
100.0
%
 
20,859

Atrium I
Columbus, OH
 
3/1/2013
 
1996
 
315,102

 
100.0
%
 
45,071

Celebration Office Center III(2)
Orlando, FL
 
3/1/2013
 
2009
 
100,924

 
100.0
%
 
18,420

Easton III
Columbus, OH
 
3/1/2013
 
1999
 
135,485

 
100.0
%
 
20,194

McAuley Place
Cincinnati, OH
 
3/1/2013
 
2001
 
190,096

 
94.0
%
 
32,309

Miramar I(2)(3)
Ft. Lauderdale, FL
 
3/1/2013
 
2001
 
94,060

 
100.0
%
 
23,912

Miramar II(2)
Ft. Lauderdale, FL
 
3/1/2013
 
2001
 
128,540

 
100.0
%
 
31,910

Norman Pointe I
Minneapolis, MN
 
3/1/2013
 
2000
 
212,722

 
93.0
%
 
36,232

Norman Pointe II
Minneapolis, MN
 
3/1/2013
 
2007
 
324,296

 
95.0
%
 
46,113

Northpoint III(2)
Orlando, FL
 
3/1/2013
 
2001
 
108,499

 
100.0
%
 
22,394

Point West I
Dallas, TX
 
3/1/2013
 
2008
 
182,700

 
100.0
%
 
31,795

The Landings I
Cincinnati, OH
 
3/1/2013
 
2006
 
175,695

 
100.0
%
 
30,249

The Landings II
Cincinnati, OH
 
3/1/2013
 
2007
 
175,076

 
94.0
%
 
23,977

Carpenter Corporate Center I & II(2)
Dallas, TX
 
7/31/2013
 
2008
 
226,822

 
100.0
%
 
49,509

Total Consolidated Office(5)
 
2001
 
7,188,370

 
98.8
%
 
$
1,634,682



Supplemental Information | Third Quarter 2015 | 21


CHAMBERS STREET PROPERTIES (continued)
Our Properties
As of September 30, 2015
($ in Thousands)

Property and Market
 
Date
Acquired
 
Year
Built
 
Net
Rentable
Square Feet
 
Percentage
Leased
 
Approximate Total
Acquisition Cost(1)
 
 
 
 
 
 
 
 
 
 
 
 
Unconsolidated Office
 
 
 
 
 
 
 
 
 
 
 
Aspen Corporate Center 500(2)(7)
Nashville, TN
 
9/30/2008
 
2008
 
180,147

 
100.0
%
 
$
29,936

West Lake at Conway(7)
Chicago, IL
 
3/24/2011
 
2008
 
98,304

 
100.0
%
 
14,060

Weston Pointe I(7)
Ft. Lauderdale, FL
 
3/24/2011
 
1999
 
97,579

 
92.0
%
 
15,507

Weston Pointe II(7)
Ft. Lauderdale, FL
 
3/24/2011
 
2000
 
97,180

 
96.0
%
 
18,701

Weston Pointe III(7)
Ft. Lauderdale, FL
 
3/24/2011
 
2003
 
97,178

 
97.0
%
 
18,867

Weston Pointe IV(7)
Ft. Lauderdale, FL
 
3/24/2011
 
2006
 
96,175

 
100.0
%
 
22,605

Total Unconsolidated Office(5)(6)
 
2004
 
666,563

 
97.8
%
 
$
119,676

Total Office(5)
 
2002
 
7,854,933

 
98.7
%
 
$
1,754,358

Total Properties(5)
 
2004
 
37,193,495

 
98.3
%
 
$
3,299,873

__________
(1)
Approximate acquisition cost for unconsolidated properties is at our pro rata share of effective ownership.
(2)
This property is unencumbered.
(3)
Includes undeveloped land zoned for future office and industrial use.
(4)
Acquisition cost includes cost for undeveloped land acquired in February 2015.
(5)
Total or weighted average. Weighted average Year Built is weighted based upon approximate Total Acquisition Costs. Weighted average Percentage Leased is weighted based upon Net Rentable Square Feet.
(6)
Does not include properties held through our investment in CBRE Strategic Partners Asia.
(7)
This property is held through the Duke JV.
(8)
This property is held through the UK JV.
(9)
This property is held through the European JV.




Supplemental Information | Third Quarter 2015 | 22



CHAMBERS STREET PROPERTIES
Geographic Distribution
As of September 30, 2015
($ in Thousands)

 
Consolidated Properties
 
Unconsolidated Properties(1)
 
Consolidated & Unconsolidated
Properties
(1)
 
% of
Approx-imate
Acqui-
sition
Cost
 
Proper-
ties
 
Net
Rentable
Square
Feet
 
Approx-
imate
Acquisition Cost
 
Proper-
ties
 
Net
Rentable
Square
Feet
 
Approx-
imate
Acquisition Cost
 
Proper-
ties
 
Net
Rentable
Square
Feet
 
Approx-
imate
Acquisition Cost
 
Domestic
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New Jersey
5

 
1,335,606

 
$
466,160

 

 

 
$

 
5

 
1,335,606

 
$
466,160

 
14.0
%
Florida
7

 
1,475,523

 
162,304

 
6

 
1,296,534

 
112,826

 
13

 
2,772,057

 
275,130

 
8.3
%
Texas
10

 
2,549,835

 
247,675

 
1

 
822,550

 
25,690

 
11

 
3,372,385

 
273,365

 
8.3
%
California
8

 
1,202,689

 
193,567

 

 

 

 
8

 
1,202,689

 
193,567

 
5.9
%
South Carolina
28

 
3,807,037

 
189,921

 

 

 

 
28

 
3,807,037

 
189,921

 
5.8
%
Ohio
5

 
991,454

 
151,800

 
1

 
1,142,400

 
38,088

 
6

 
2,133,854

 
189,888

 
5.8
%
Pennsylvania
5

 
1,944,289

 
187,874

 

 

 

 
5

 
1,944,289

 
187,874

 
5.7
%
Virginia
3

 
839,398

 
186,723

 

 

 

 
3

 
839,398

 
186,723

 
5.7
%
Arizona
3

 
1,433,985

 
129,258

 
1

 
1,009,351

 
52,797

 
4

 
2,443,336

 
182,055

 
5.5
%
Minnesota
5

 
1,269,333

 
144,604

 

 

 

 
5

 
1,269,333

 
144,604

 
4.4
%
Illinois
4

 
2,137,111

 
128,520

 
1

 
98,304

 
14,060

 
5

 
2,235,415

 
142,580

 
4.3
%
Indiana
1

 
622,440

 
30,200

 
2

 
2,236,993

 
84,112

 
3

 
2,859,433

 
114,312

 
3.5
%
North Carolina
8

 
1,625,366

 
111,884

 

 

 

 
8

 
1,625,366

 
111,884

 
3.4
%
Maryland
2

 
1,472,798

 
92,379

 

 

 

 
2

 
1,472,798

 
92,379

 
2.8
%
Massachusetts
2

 
438,975

 
74,475

 

 

 

 
2

 
438,975

 
74,475

 
2.3
%
Kansas
1

 
1,107,000

 
62,950

 

 

 

 
1

 
1,107,000

 
62,950

 
1.9
%
Tennessee

 

 

 
1

 
180,147

 
29,936

 
1

 
180,147

 
29,936

 
0.9
%
Colorado
1

 
406,959

 
24,500

 

 

 

 
1

 
406,959

 
24,500

 
0.7
%
Kentucky
1

 
189,400

 
14,800

 

 

 

 
1

 
189,400

 
14,800

 
0.4
%
Total Domestic
99

 
24,849,198

 
2,599,594

 
13

 
6,786,279

 
357,509

 
112

 
31,635,477

 
2,957,103

 
89.6
%
International
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Germany

 

 

 
8

 
3,995,219

 
220,009

 
8

 
3,995,219

 
220,009

 
6.7
%
France

 

 

 
1

 
970,765

 
62,746

 
1

 
970,765

 
62,746

 
1.9
%
United Kingdom
1

 
50,502

 
23,847

 
3

 
541,532

 
36,168

 
4

 
592,034

 
60,015

 
1.8
%
Total International
1

 
50,502

 
23,847

 
12

 
5,507,516

 
318,923

 
13

 
5,558,018

 
342,770

 
10.4
%
Total
100

 
24,899,700

 
$
2,623,441

 
25

 
12,293,795

 
$
676,432

 
125

 
37,193,495

 
$
3,299,873

 
100.0
%
__________
(1)
Includes unconsolidated properties held through our Duke JV, European JV and UK JV. Number of Properties and Net Rentable Square Feet are included at 100% and Approximate Acquisition Cost is at our pro rata share of effective ownership.


Supplemental Information | Third Quarter 2015 | 23


CHAMBERS STREET PROPERTIES
Significant Tenants
As of September 30, 2015 (unaudited)
($ in Thousands)



 
 
 
 
 
Credit Rating(1)
 
Consolidated &
Unconsolidated
Properties(2)
 
% of
Cash
An-nual-
ized
Base
Rent
 
Major Tenants(3)
 
Primary Industry
 
S&P
 
Moody's
 
Net
Rentable
Square
Feet
 
Annualized
Base Rent
 
 
 
 
 
 
Cash
 
GAAP(4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1
Amazon.com
 
Internet Retail
 
 AA-
 
 Baa1
 
6,540,667

 
$
26,608

 
$
25,652

 
9.8
%
2
Barclay's Capital
 
Financial Services
 
 A-
 
 A2
 
409,272

 
12,278

 
9,917

 
4.5
%
3
Raytheon Company
 
Defense and Aerospace
 
 A
 
 A3
 
666,290

 
10,582

 
11,342

 
3.9
%
4
U.S. General Services Administration
 
Government
 
 AA+
 
 Aa1
 
413,496

 
10,093

 
10,339

 
3.7
%
5
Lord Abbett & Co.
 
Financial Services
 
 
 
272,127

 
10,069

 
10,370

 
3.7
%
6
JP Morgan Chase
 
Financial Services
 
 A+
 
 A3
 
396,179

 
6,212

 
6,626

 
2.3
%
7
Nuance Communications, Inc.
 
Software
 
 BB-
 
 Ba3
 
200,605

 
6,095

 
6,586

 
2.3
%
8
Endo Health Solutions Inc.
 
Pharmaceutical and Healthcare Related
 
 
 
299,809

 
5,846

 
7,771

 
2.2
%
9
Comcast of California
 
Telecommunications
 
 A-
 
 A3
 
219,631

 
5,205

 
5,042

 
1.9
%
10
Eisai, Inc.
 
Pharmaceutical and Healthcare Related
 
 
 
208,911

 
5,189

 
5,217

 
1.9
%
11
PPD Development LP
 
Pharmaceutical and Healthcare Related
 
 B
 
 Ba2
 
251,475

 
4,991

 
4,643

 
1.8
%
12
Charles Komar & Sons, Inc.
 
Apparel Retail
 
 
 
159,341

 
4,933

 
4,093

 
1.8
%
13
The Coleman Company, Inc.
 
Consumer Products
 
 BB
 
 Ba3
 
1,107,000

 
4,760

 
4,569

 
1.8
%
14
Deloitte LLP
 
Professional Services
 
 
 
175,000

 
4,740

 
4,660

 
1.8
%
15
Clorox International Co
 
Consumer Products
 
 BBB+
 
 Baa1
 
1,350,000

 
4,574

 
4,429

 
1.7
%
16
Unilever
 
Consumer Products
 
 A+
 
 A1
 
1,594,760

 
4,250

 
4,058

 
1.6
%
17
Nationwide Mutual Insurance Co
 
Insurance
 
 A+
 
 A1
 
315,102

 
3,884

 
3,761

 
1.4
%
18
Humana
 
Pharmaceutical and Healthcare Related
 
 BBB+
 
 Baa3
 
226,822

 
3,788

 
3,731

 
1.4
%
19
Carl Zeiss Meditec
 
Pharmaceutical and Healthcare Related
 
 
 
201,620

 
3,770

 
3,395

 
1.4
%
20
ConAgra Foods Packaged Foods, LLC
 
Food Service and Retail
 
 BBB-
 
 Baa2
 
741,860

 
3,423

 
3,408

 
1.3
%
21
Whirlpool Corporation
 
Consumer Products
 
 BBB
 
 Baa2
 
1,020,000

 
3,385

 
3,429

 
1.3
%
22
Kimberly-Clark Global Sales, Inc.
 
Consumer Products
 
 A
 
 A2
 
744,080

 
3,348

 
3,368

 
1.2
%
23
Space Exploration Technologies Corp
 
Defense and Aerospace
 
 
 
514,753

 
3,348

 
3,913

 
1.2
%
24
SBM Atlantia, Inc.
 
Petroleum and Mining
 
 
 
171,091

 
3,293

 
2,659

 
1.2
%
25
Prime Distribution Services
 
Logistics Distribution
 
 
 
1,200,420

 
3,256

 
3,038

 
1.2
%
26
Noxell Corporation
 
Consumer Products
 
 
 
800,797

 
3,240

 
3,274

 
1.2
%
27
NCS Pearson, Inc.
 
Education
 
 BBB+
 
 Baa1
 
167,218

 
3,201

 
2,794

 
1.2
%
28
Bob's Discount Furniture
 
Home Furnishings/Home Improvement
 
 
 
672,000

 
3,158

 
3,154

 
1.2
%
29
Kellogg Sale Company
 
Consumer Products
 
 BBB+
 
 Baa2
 
1,142,400

 
3,033

 
2,854

 
1.1
%
30
REMEC Defense and Space
 
Defense and Aerospace
 
 
 
132,685

 
2,818

 
2,835

 
1.0
%
31
Time Warner Cable Inc.
 
Telecommunications
 
 BBB
 
 Baa2
 
134,000

 
2,814

 
2,655

 
1.0
%
32
Royal Caribbean Cruises Ltd
 
Travel/Leisure
 
 BB+
 
 Ba1
 
128,540

 
2,764

 
2,706

 
1.0
%
33
Syngenta Seeds Inc
 
Agriculture
 
 A+
 
 A2
 
116,338

 
2,728

 
2,575

 
1.0
%
34
American Home Mortgage
 
Financial Services
 
 
 
182,700

 
2,713

 
2,676

 
1.0
%
35
Mercy Health Partners of SW Ohio
 
Pharmaceutical and Healthcare Related
 
 
 A1
 
124,671

 
2,623

 
2,099

 
1.0
%
36
Dr Pepper / Seven up, Inc.
 
Food Service and Retail
 
 BBB+
 
 Baa1
 
601,500

 
2,611

 
2,720

 
1.0
%
37
Disney Vacation Development
 
Travel/Leisure
 
 A
 
 A2
 
100,924

 
2,609

 
1,804

 
1.0
%
38
Citicorp North America, Inc.
 
Financial Services
 
 A
 
 Baa3
 
175,695

 
2,574

 
2,551

 
1.0
%
39
Verizon Wireless
 
Telecommunications
 
 BBB+
 
 Baa1
 
180,147

 
2,519

 
2,408

 
0.9
%
40
Lear Operations Corporation
 
Vehicle Related Manufacturing
 
 BB+
 
 Ba1
 
477,263

 
2,452

 
2,207

 
0.9
%
 
Other (approx 138) tenants
 
12,034,397

 
70,990

 
70,851

 
26.2
%
 
 
 
 
 
 
 
 
 
36,571,586

 
$
270,767

 
$
266,179

 
100.0
%
__________
(1)
Credit rating is for our tenant, its guarantor or its parent company.
(2)
Includes unconsolidated properties held through our Duke JV, European JV and UK JV. Net Rentable Square Feet is at 100% and annualized base rent is at our pro rata share of effective ownership.
(3)
In certain cases in which our tenant is a wholly-owned subsidiary of its parent company, the parent company is listed as our tenant.
(4)
Includes amortization of straight line rent, above-market leases and lease inducement, if applicable. Excludes operating expense reimbursements.



Supplemental Information | Third Quarter 2015 | 24



CHAMBERS STREET PROPERTIES
Tenant Industry Profile
As of September 30, 2015
($ in Thousands)
Primary Tenant Industry Category
 
Consolidated Properties
 
Unconsolidated
Properties(1)
 
Consolidated &
Unconsolidated
Properties(1)
 
% of
Annual-
ized
Base
Rent
 
Net Rentable
Square Feet
 
Annualized Base Rent
 
Net Rentable
Square Feet
 
Annualized Base Rent
 
Net Rentable
Square Feet
 
Annualized Base Rent
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial Services
 
1,734,018

 
$
37,316

 
32,550

 
$
586

 
1,766,568

 
$
37,902

 
14.0
%
Consumer Products
 
5,921,554

 
22,346

 
3,327,772

 
9,846

 
9,249,326

 
32,192

 
12.0
%
Pharmaceutical and Healthcare Related
 
1,676,281

 
27,919

 
291,154

 
2,418

 
1,967,435

 
30,337

 
11.2
%
Internet Retail
 
1,435,984

 
7,688

 
5,104,683

 
18,920

 
6,540,667

 
26,608

 
9.9
%
Defense and Aerospace
 
1,385,235

 
18,536

 

 

 
1,385,235

 
18,536

 
6.8
%
Logistics Distribution
 
1,343,414

 
5,599

 
2,569,073

 
9,084

 
3,912,487

 
14,683

 
5.4
%
Telecommunications
 
720,624

 
9,960

 
180,147

 
2,520

 
900,771

 
12,480

 
4.6
%
Food Service and Retail
 
2,617,505

 
11,370

 

 

 
2,617,505

 
11,370

 
4.2
%
Government
 
279,993

 
6,714

 
133,503

 
3,379

 
413,496

 
10,093

 
3.7
%
Software
 
200,605

 
6,095

 
112,602

 
1,798

 
313,207

 
7,893

 
2.9
%
Insurance
 
491,633

 
7,209

 
3,005

 
50

 
494,638

 
7,259

 
2.7
%
Apparel Retail
 
313,612

 
6,846

 

 

 
313,612

 
6,846

 
2.5
%
Professional Services
 
283,127

 
6,280

 
28,949

 
475

 
312,076

 
6,755

 
2.5
%
Business Services
 
1,038,657

 
6,560

 
4,740

 
75

 
1,043,397

 
6,635

 
2.5
%
Vehicle Related Manufacturing
 
1,183,785

 
5,051

 
320,463

 
1,566

 
1,504,248

 
6,617

 
2.4
%
Travel/Leisure
 
229,464

 
5,372

 
12,662

 
232

 
242,126

 
5,604

 
2.1
%
Education
 
275,421

 
5,426

 

 

 
275,421

 
5,426

 
2.0
%
Other Manufacturing
 
1,262,377

 
4,864

 
36,588

 
550

 
1,298,965

 
5,414

 
2.0
%
Agriculture
 
227,103

 
4,611

 

 

 
227,103

 
4,611

 
1.7
%
Specialty Retail
 
689,740

 
3,929

 

 

 
689,740

 
3,929

 
1.5
%
Home Furnishings/Home Improvement
 
672,000

 
3,158

 
109,318

 
420

 
781,318

 
3,578

 
1.3
%
Petroleum and Mining
 
171,091

 
3,293

 

 

 
171,091

 
3,293

 
1.2
%
Utilities
 
108,499

 
1,683

 

 

 
108,499

 
1,683

 
0.6
%
Non-Profit
 
30,895

 
815

 

 

 
30,895

 
815

 
0.3
%
Executive Office Suites
 

 

 
11,760

 
208

 
11,760

 
208

 
0.1
%
Total
 
24,292,617

 
$
218,640

 
12,278,969

 
$
52,127

 
36,571,586

 
$
270,767

 
100.0
%
__________
(1)
Includes unconsolidated properties held through our Duke JV, European JV and UK JV. Net Rentable Square Feet is included at 100% and Annualized Base Rent is at our pro rata share of effective ownership.





Supplemental Information | Third Quarter 2015 | 25


CHAMBERS STREET PROPERTIES
Tenant Lease Expirations
As of September 30, 2015
($ in Thousands, Except for Expiring Base Rent per Square Feet)


Year of Lease
Expiration
 
Number of
Expiring
Leases
(1)
 
Net Rentable
Square Feet(1)
 
Percentage of
Total Net
Rentable Square
Feet
(1)
 
Expiring
Base
Rent
(2)
 
Percentage
of Expiring
Base
Rent
(2)
 
Expiring
Base Rent
per
Square
Feet
(1)
Industrial Properties:
 
 
 
 
 
 
 
 
 
 
Remaining 2015
 
2

 
10,000

 
0.1
%
 
$
83

 
0.1
%
 
$
8.25

2016
 
7

 
896,400

 
3.1
%
 
4,131

 
3.4
%
 
4.61

2017
 
13

 
2,233,801

 
7.8
%
 
10,101

 
8.4
%
 
4.52

2018
 
11

 
3,306,747

 
11.5
%
 
12,745

 
10.6
%
 
3.85

2019
 
17

 
5,883,069

 
20.4
%
 
23,305

 
19.5
%
 
3.96

2020
 
8

 
1,829,593

 
6.3
%
 
8,090

 
6.8
%
 
4.42

2021
 
12

 
5,803,401

 
20.1
%
 
21,712

 
18.1
%
 
3.74

2022
 
3

 
1,654,371

 
5.7
%
 
6,835

 
5.7
%
 
4.13

2023
 
8

 
3,708,101

 
12.9
%
 
15,966

 
13.3
%
 
4.31

2024
 
1

 
22,400

 
0.1
%
 
200

 
0.2
%
 
8.95

Thereafter
 
9

 
3,467,017

 
12.0
%
 
16,638

 
13.9
%
 
4.80

 
 
91

 
28,814,900

 
100.0
%
 
$
119,806

 
100.0
%
 
$
4.16

Office Properties:
 
 
 
 
 
 
 
 
 
 
Remaining 2015
 
1

 
12,662

 
0.2
%
 
$
232

 
0.1
%
 
$
18.35

2016
 
17

 
963,891

 
12.4
%
 
22,941

 
13.3
%
 
23.80

2017
 
10

 
416,268

 
5.4
%
 
9,140

 
5.3
%
 
21.96

2018
 
21

 
716,926

 
9.2
%
 
12,148

 
7.0
%
 
16.95

2019
 
12

 
776,570

 
10.0
%
 
14,230

 
8.2
%
 
18.32

2020
 
10

 
315,765

 
4.1
%
 
7,960

 
4.6
%
 
25.21

2021
 
12

 
798,291

 
10.3
%
 
17,593

 
10.2
%
 
22.04

2022
 
4

 
372,542

 
4.8
%
 
6,991

 
4.0
%
 
18.77

2023
 
12

 
918,681

 
11.8
%
 
20,884

 
12.1
%
 
22.73

2024
 
3

 
583,696

 
7.5
%
 
17,475

 
10.1
%
 
29.94

Thereafter
 
14

 
1,881,394

 
24.3
%
 
43,180

 
25.1
%
 
22.95

 
 
116

 
7,756,686

 
100.0
%
 
$
172,774

 
100.0
%
 
$
22.27




Supplemental Information | Third Quarter 2015 | 26


CHAMBERS STREET PROPERTIES (continued)
Tenant Lease Expirations
As of September 30, 2015
($ in Thousands, Except for Expiring Base Rent per Square Feet)



Year of Lease
Expiration
 
Number of
Expiring
Leases
(1)
 
Net Rentable
Square Feet
(1)
 
Percentage of
Total Net
Rentable Square
Feet
(1)
 
Expiring
Base
Rent
(2)
 
Percentage
of Expiring
Base
Rent
(2)
 
Expiring
Base Rent
per
Square
Feet
(1)
Total Properties
 
 
 
 
 
 
 
 
 
 
Remaining 2015
 
3

 
22,662

 
0.1
%
 
$
315

 
0.1
%
 
$
13.89

2016
 
24

 
1,860,291

 
5.1
%
 
27,072

 
9.3
%
 
14.55

2017
 
23

 
2,650,069

 
7.2
%
 
19,241

 
6.6
%
 
7.26

2018
 
32

 
4,023,673

 
11.0
%
 
24,893

 
8.5
%
 
6.19

2019
 
29

 
6,659,639

 
18.2
%
 
37,535

 
12.8
%
 
5.64

2020
 
18

 
2,145,358

 
5.9
%
 
16,050

 
5.5
%
 
7.48

2021
 
24

 
6,601,692

 
18.1
%
 
39,305

 
13.4
%
 
5.95

2022
 
7

 
2,026,913

 
5.5
%
 
13,826

 
4.7
%
 
6.82

2023
 
20

 
4,626,782

 
12.7
%
 
36,850

 
12.6
%
 
7.96

2024
 
4

 
606,096

 
1.7
%
 
17,675

 
6.0
%
 
29.16

Thereafter
 
23

 
5,348,411

 
14.5
%
 
59,819

 
20.5
%
 
11.18

 
 
207

 
36,571,586

 
100.0
%
 
$
292,581

 
100.0
%
 
$
8.00

__________
(1)
Includes amounts related to our unconsolidated properties held through our Duke JV, European JV and UK JV at 100%.
(2)
Includes amounts related to our unconsolidated properties held through our Duke JV, European JV and UK JV at our pro rata share of effective ownership.


 
 
Consolidated Properties
 
Unconsolidated
Properties(1)
 
Consolidated &
Unconsolidated Properties(1)
Weighted Average Remaining Term (Years)(2):
 
 
 
 
 
 
Triple Net Single-Tenant Properties(3)
 
6.54

 
5.59

 
6.34

Multi-Tenant Properties
 
7.31

 
4.76

 
6.97

Other Single-Tenant Properties
 
4.71

 
4.25

 
4.62

Total Weighted Average Remaining Term (Years)(2) 
 
6.60

 
5.42

 
6.38

__________
(1)
Includes pro rata share of unconsolidated properties except those held through CBRE Strategic Partners Asia.
(2)
Weighted Average Remaining Term is the average remaining term weighted by Expiring Base Rent.
(3)
Triple Net Single-Tenant Properties include certain properties that have minimal secondary tenant(s).





Supplemental Information | Third Quarter 2015 | 27



CHAMBERS STREET PROPERTIES
Percentage Leased
As of September 30, 2015
 
Three Months Ended September 30, 2015
 
Consolidated
Properties
 
Unconsolidated
Properties(1)
 
Consolidated and
Unconsolidated
Properties(1)
Amounts at Beginning of Period
 
 
 
 
 
Total Net Rentable Square Feet
24,899,700

 
12,293,795

 
37,193,495

Leased Square Feet
24,633,196

 
12,286,581

 
36,919,777

Leased Percentage
98.9
%
 
99.9
%
 
99.3
%
Activity During the Quarter
 
 
 
 
 
Leasing:
 
 
 
 
 
New Leases
154,095

 

 
154,095

Contractions
(5,186
)
 
(6,112
)
 
(11,298
)
Total Leasing Activity
148,909

 
(6,112
)
 
142,797

Expirations and Terminations:
 
 
 
 
 
Expiring Square Footage
(489,488
)
 
(1,500
)
 
(490,988
)
Net Leasing Activity
(340,579
)
 
(7,612
)
 
(348,191
)
Amounts at End of Period
 
 
 
 
 
Total Net Rentable Square Feet
24,899,700

 
12,293,795

 
37,193,495

Leased Square Feet
24,292,617

 
12,278,969

 
36,571,586

Leased Percentage
97.6
%
 
99.9
%
 
98.3
%
__________
(1)
Amounts for unconsolidated properties are at 100%.

 


Supplemental Information | Third Quarter 2015 | 28



CHAMBERS STREET PROPERTIES
Tenant Leasing Activity
For the Three Months Ended September 30, 2015
($ in Thousands)
 
 
 
Prior Lease(1)
 
New Lease(1)
 
Square Feet
 
Annualized
Base Rent(2)
 
Annualized
Base Rent(2)
 
Tenant
Improve-
ments
& Leasing
Commis-
sions
(4)
 
Average
Lease
 Term (in
years)(5)
 
 
Cash
 
GAAP(3)
 
Cash
 
GAAP(3)
 
 
Industrial Properties
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
 
Renewals
381,632

 
$
2,152

 
$
2,035

 
$
1,759

 
$
1,871

 
$
1,090

 
8.77

New Tenants - Previously Leased Space(6) 
149,213

 
672

 
672

 
601

 
595

 
463

 
3.79

Total Consolidated
530,845

 
2,824

 
2,707

 
2,360

 
2,466

 
1,553

 
7.50

Consolidated & Unconsolidated
 
 
 
 
 
 
 
 
 
 
 
 
 
Renewals
381,632

 
2,152

 
2,035

 
1,759

 
1,871

 
1,090

 
8.77

New Tenants - Previously Leased Space(6) 
149,213

 
672

 
672

 
601

 
595

 
463

 
3.79

Total Consolidated & Unconsolidated
530,845

 
2,824

 
2,707

 
2,360

 
2,466

 
1,553

 
7.50

Office Properties
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
 
Renewals
1,262,982

 
27,596

 
25,195

 
26,533

 
26,959

 
25,590

 
8.17

New Tenants - Not Previously Leased Space (7)
789

 

 

 
11

 
11

 
10

 
4.00

Total Consolidated
1,263,771

 
27,596

 
25,195

 
26,544

 
26,970

 
25,600

 
8.17

Consolidated & Unconsolidated
 
 
 
 
 
 
 
 
 
 
 
 
 
Renewals
1,262,982

 
27,596

 
25,195

 
26,533

 
26,959

 
25,590

 
8.17

New Tenants - Not Previously Leased Space(7) 
789

 

 

 
11

 
11

 
10

 
4.00

Total Consolidated & Unconsolidated
1,263,771

 
27,596

 
25,195

 
26,544

 
26,970

 
25,600

 
8.17

Total Properties
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
 
Renewals
1,644,614

 
29,748

 
27,230

 
28,292

 
28,830

 
26,680

 
8.21

New Tenants - Previously Leased Space(6)
149,213

 
672

 
672

 
601

 
595

 
463

 
3.79

New Tenants - Not Previously Leased Space(7) 
789

 

 

 
11

 
11

 
10

 
4.00

Total Consolidated
1,794,616

 
30,420

 
27,902

 
28,904

 
29,436

 
27,153

 
8.11

Consolidated & Unconsolidated
 
 
 
 
 
 
 
 
 
 
 
 
 
Renewals
1,644,614

 
29,748

 
27,230

 
28,292

 
28,830

 
26,680

 
8.21

New Tenants - Previously Leased Space(6)
149,213

 
672

 
672

 
601

 
595

 
463

 
3.79

New Tenants - Not Previously Leased Space(7) 
789

 

 

 
11

 
11

 
10

 
4.00

Total Consolidated & Unconsolidated
1,794,616

 
$
30,420

 
$
27,902

 
$
28,904

 
$
29,436

 
$
27,153

 
8.11

__________
(1)
Prior lease amounts represent rents in place at the time of expiration or termination. New lease amounts represent rents in place at the time of lease commencement. For certain leases, prior lease amounts are adjusted for comparability to new lease amounts (i.e. if a prior lease is gross and the new lease is net, the prior amounts are adjusted accordingly).
(2)
Annualized base rent amounts for unconsolidated properties are included at pro rata share.
(3)
GAAP amounts for prior leases include above/below market rents if applicable.
(4)
Includes tenant improvement costs and lease commissions incurred to execute the lease and not necessarily paid in the current quarter.
(5)
Weighted average initial lease term (in years) weighted by annualized cash base rent.
(6)
Represents leases signed to new tenants for space that was previously leased since the later of (i) twelve months ago or (ii) the date we acquired the property.
(7)
Represents leases signed to new tenants for space that was not previously leased since the later of (i) twelve months ago or (ii) the date we acquired the property.


Supplemental Information | Third Quarter 2015 | 29



CHAMBERS STREET PROPERTIES
Capital Structure and Debt Maturities
As of September 30, 2015
($ in Thousands)
 
Number of Outstanding Shares
 
Balance at September 30, 2015
 
Percentage
Debt
 
 
 
 
 
Secured Notes Payable(1)  
 
 
$
467,879

 
15.5
%
Pro Rata Share of Unconsolidated Debt
 
 
145,018

 
4.8
%
Unsecured Term Loan Facilities
 
 
570,000

 
18.9
%
Unsecured Revolving Credit Facility
 
 
290,044

 
9.6
%
Total Debt
 
 
1,472,941

 
48.9
%
Equity
 
 
 
 
 
Common Shares(2)  
236,855,738

 
1,537,194

 
51.1
%
Total Market Capitalization
 
 
$
3,010,135

 
100.0
%
__________
(1)
Amounts are presented excluding the effect of net premiums.
(2)
Value based on our closing share price on the NYSE of $6.49 as of September 30, 2015.
Debt Maturities
 
 
 
 
 
 
 
 
 
Consolidated Debt(1)
 
Unconsolidated Debt(2)
 
Consolidated &
Unconsolidated Debt(1)(2)
 
Weigh-
ted
Average
Interest
Rate(3)(4)
 
Sche-
duled
Amorti-
zation
 
Term
Maturities
 
Total
 
Sche-
duled
Amorti-
zation
 
Term
Maturities
 
Total
 
Sche-
duled
Amorti-
zation
 
Term
Maturities
 
Total
 
Remaining 2015
$
3,588

 
$

 
$
3,588

 
$
229

 
$

 
$
229

 
$
3,817

 
$

 
$
3,817

 
%
2016
13,271

 
121,341

 
134,612

 
941

 

 
941

 
14,212

 
121,341

 
135,553

 
5.46
%
2017
12,495

 
34,327

 
46,822

 
990

 
56,204

 
57,194

 
13,485

 
90,531

 
104,016

 
3.77
%
2018
10,560

 
552,052

 
562,612

 
1,043

 

 
1,043

 
11,603

 
552,052

 
563,655

 
2.19
%
2019
7,982

 
300,786

 
308,768

 
1,097

 

 
1,097

 
9,079

 
300,786

 
309,865

 
2.57
%
2020
6,290

 
65,846

 
72,136

 
1,156

 
43,701

 
44,857

 
7,446

 
109,547

 
116,993

 
3.84
%
2021
3,743

 
190,449

 
194,192

 
875

 
38,782

 
39,657

 
4,618

 
229,231

 
233,849

 
4.78
%
2022
1,870

 

 
1,870

 

 

 

 
1,870

 

 
1,870

 
%
2023
1,987

 

 
1,987

 

 

 

 
1,987

 

 
1,987

 
%
2024
1,167

 

 
1,167

 

 

 

 
1,167

 

 
1,167

 
6.33
%
Thereafter
169

 

 
169

 

 

 

 
169

 

 
169

 
5.80
%
Total
$
63,122

 
$
1,264,801

 
$
1,327,923

 
$
6,331

 
$
138,687

 
$
145,018

 
$
69,453

 
$
1,403,488

 
$
1,472,941

 
3.56
%
__________
(1)
Consolidated debt amount includes a $290.0 million outstanding balance on the unsecured revolving credit facility as of September 30, 2015. The unsecured revolving credit facility expires January 15, 2018. We have an option to extend the maturity date by one year.
(2)
Unconsolidated debt amounts are at our pro rata share of effective ownership.
(3)
Weighted average interest rate is calculated using the maturity date of our various debt.
(4)
Weighted average interest rate for 2018 debt maturity consists of 1.50% floating interest rate for the revolving credit facility and 2.93% of interest rate for all other fixed rate debt.



Supplemental Information | Third Quarter 2015 | 30



CHAMBERS STREET PROPERTIES
Debt Composition
As of September 30, 2015
($ in Thousands)
 
 
Consolidated Debt(1)
 
Unconsolidated Debt(2)
 
Consolidated &
Unconsolidated Debt(1)(2)
 
 
Scheduled
Amortization
 
Term
Maturities
 
Total
 
Scheduled
Amortization
 
Term
Maturities
 
Total
 
Scheduled
Amortization
 
Term
Maturities
 
Total
Amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed Interest Rate Debt
 
$
63,122

 
$
974,757

 
$
1,037,879

 
$
6,331

 
$
138,687

 
$
145,018

 
$
69,453

 
$
1,113,444

 
$
1,182,897

Floating Interest Rate Debt
 

 
290,044

 
290,044

 

 

 

 

 
290,044

 
290,044

Total
 
$
63,122

 
$
1,264,801

 
$
1,327,923

 
$
6,331

 
$
138,687

 
$
145,018

 
$
69,453

 
$
1,403,488

 
$
1,472,941

Weighted Average Remaining Term (years)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed Interest Rate Debt
 
 
 
 
 
3.37

 
 
 
 
 
4.19

 
 
 
 
 
3.47

Floating Interest Rate Debt
 
 
 
 
 
2.29

 
 
 
 
 
N/A

 
 
 
 
 
2.29

Total
 
 
 
 
 
3.13

 
 
 
 
 
4.19

 
 
 
 
 
3.24

Weighted Average Interest Rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed Interest Rate Debt
 
 
 
 
 
4.15
%
 
 
 
 
 
3.44
%
 
 
 
 
 
4.06
%
Floating Interest Rate Debt
 
 
 
 
 
1.50
%
 
 
 
 
 
N/A

 
 
 
 
 
1.50
%
Total
 
 
 
 
 
3.57
%
 
 
 
 
 
3.44
%
 
 
 
 
 
3.56
%
__________
(1)
Consolidated debt amount includes a $290.0 million outstanding balance on the unsecured revolving credit facility as of September 30, 2015. The unsecured revolving credit facility expires January 15, 2018. We may exercise an option to extend the maturity date by one year. The annual facility fee of 0.30% is not reflected in the interest rate amounts included in this table.
(2)
Unconsolidated debt amounts are at our pro rata share of effective ownership.

Encumbered/Unencumbered Properties
 
 
 
 
 
 
 
Consolidated Properties
 
Unconsolidated Properties(1)
 
Consolidated &
Unconsolidated Properties(1)
 
Properties
 
Approximate
Acquisition Cost
 
Debt
Balance
 
Properties
 
Approximate
Acquisition Cost
 
Debt
Balance
 
Properties
 
Approximate
Acquisition Cost
 
Debt
Balance
Encumbered Properties
29

 
$
904,453

 
$
467,879

 
12

 
$
334,106

 
$
145,018

 
41

 
$
1,238,559

 
$
612,897

Unencumbered Properties
71

 
1,718,988

 

 
13

 
342,326

 

 
84

 
2,061,314

 

Total Properties
100

 
$
2,623,441

 
$
467,879

 
25

 
$
676,432

 
$
145,018

 
125

 
$
3,299,873

 
$
612,897

__________
(1)
Number of Properties is at 100%. Approximate Acquisition Cost and Debt Balance for Unconsolidated Properties is at our pro rata share of effective ownership. Does not include our investment in CBRE Strategic Partners Asia.



Supplemental Information | Third Quarter 2015 | 31



CHAMBERS STREET PROPERTIES
Consolidated Debt
As of September 30, 2015
(In Thousands)
Property
 
Stated Interest Rate
 
Effective
Interest Rate(1)
 
Maturity
Date
 
Outstanding
Balance
 
 
 
 
 
 
 
 
 
70 Hudson Street
 
5.65%
 
5.15%
 
4/11/2016
 
$
112,543

Point West I - Swapped to Fixed
 
3.41%
 
3.41%
 
12/6/2016
 
10,472

100 Tice Blvd
 
5.97%
 
4.38%
 
9/15/2017
 
18,499

100 Tice Blvd
 
5.97%
 
4.38%
 
9/15/2017
 
18,499

4701 Gold Spike Drive
 
4.45%
 
4.45%
 
3/1/2018
 
9,806

1985 International Way
 
4.45%
 
4.45%
 
3/1/2018
 
6,813

3660 Deerpark Boulevard
 
4.45%
 
4.45%
 
3/1/2018
 
7,043

Tolleson Commerce Park II
 
4.45%
 
4.45%
 
3/1/2018
 
4,235

20000 S. Diamond Lake Road
 
4.45%
 
4.45%
 
3/1/2018
 
6,169

Atrium I - Swapped to Fixed
 
3.78%
 
3.78%
 
5/31/2018
 
20,878

McAuley Place
 
3.98%
 
3.50%
 
9/1/2018
 
12,582

Easton III - Swapped to Fixed
 
3.95%
 
3.95%
 
1/31/2019
 
6,141

90 Hudson Street
 
5.66%
 
5.26%
 
5/1/2019
 
102,165

Fairforest Bldg. 6
 
5.42%
 
6.50%
 
6/1/2019
 
1,488

North Rhett I
 
5.65%
 
6.50%
 
8/1/2019
 
1,606

Kings Mountain II
 
5.47%
 
6.50%
 
1/1/2020
 
3,014

1 Rocket Road
 
6.60%
 
4.00%
 
8/1/2020
 
18,213

North Rhett II
 
5.20%
 
6.50%
 
10/1/2020
 
1,265

Mount Holly Bldg.
 
5.20%
 
6.50%
 
10/1/2020
 
1,265

Orangeburg Park Bldg.
 
5.20%
 
6.50%
 
10/1/2020
 
1,286

Kings Mountain I
 
5.27%
 
6.50%
 
10/1/2020
 
1,096

Ten Parkway North
 
4.75%
 
4.75%
 
1/1/2021
 
11,226

Union Cross Bldg. II
 
5.53%
 
6.50%
 
6/1/2021
 
5,192

Union Cross Bldg. I
 
5.50%
 
6.50%
 
7/1/2021
 
1,709

Norman Pointe I
 
5.24%
 
3.50%
 
10/1/2021
 
19,914

Norman Pointe II
 
5.24%
 
3.50%
 
10/1/2021
 
21,924

The Landings I
 
5.24%
 
3.50%
 
10/1/2021
 
14,987

The Landings II
 
5.24%
 
3.50%
 
10/1/2021
 
13,219

Fairforest Bldg. 5
 
6.33%
 
6.50%
 
2/1/2024
 
7,203

North Rhett IV
 
5.80%
 
6.50%
 
2/1/2025
 
7,427

Total Secured Notes Payable
 
467,879

Plus Premium
 
11,587

Less Discount
 
(727
)
Total Secured Notes Payable, Net
 
$
478,739

WF Term Loan #2
 
2.49%
 
3/7/2018
 
$
200,000

WF Term Loan #3
 
3.12%
 
1/15/2019
 
200,000

TD Term Loan
 
3.28%
 
3/6/2020
 
50,000

Capital One Term Loan
 
4.32%
 
1/31/2021
 
120,000

Total Unsecured Term Loans
 
$
570,000

Revolving Credit Facility
 
1.50%
 
1/15/2018
 
$
290,044

__________
(1)
Represents the rate at which interest expense is recorded for financial reporting purposes, which reflects the amortization of any discounts/premiums, excluding debt issuance costs.


Supplemental Information | Third Quarter 2015 | 32



CHAMBERS STREET PROPERTIES
Unconsolidated Debt
As of September 30, 2015
(In Thousands)
Property
 
Stated
Interest Rate
 
Effective
Interest Rate
 
Maturity
Date
 
Outstanding
Balance(1)
 
 
 
 
 
 
 
 
 
Graben Distribution Center I & II
 
2.39%
 
2.39%
 
7/27/2017
 
$
27,811

Koblenz Distribution Center
 
2.27%
 
2.27%
 
11/11/2017
 
28,393

Hansaline Distribution Center
 
3.01%
 
3.01%
 
11/25/2020
 
10,552

Bodenheim Logistikzentrum
 
3.01%
 
3.01%
 
11/25/2020
 
10,123

Lille-Douai Distribution Center
 
3.13%
 
3.13%
 
12/17/2020
 
23,027

Fairfield Distribution Ctr. IX
 
5.00%
 
5.00%
 
9/1/2021
 
3,407

West Lake at Conway
 
5.00%
 
5.00%
 
9/1/2021
 
7,106

Weston Pointe I - IV
 
5.24%
 
5.24%
 
10/1/2021
 
34,599

Total Unconsolidated Debt
 
$
145,018

__________
(1)
Amounts are at our pro rata share of effective ownership.




Supplemental Information | Third Quarter 2015 | 33


CHAMBERS STREET PROPERTIES
Non-GAAP Supplemental Financial Measures:


Annualized Base Rent
Annualized Base Rent for each lease equals (i) 12 times the monthly cash base rent due as of September 30, 2015, or (ii) for any lease still in an initial free or reduced rent period as of September 30, 2015, 12 times the monthly cash base rent due upon expiration of the initial free or reduced rent period.
Net Operating Income
Net operating income ("NOI") is designed to reflect the operating performance of our portfolio by excluding certain items that are not considered to be controllable in connection with the management of the property. NOI is a non-GAAP financial measure which calculates rental income, tenant reimbursements and other property income less property and related expenses (operating and maintenance, property management fees, property level general and administrative expenses and real estate taxes) and excludes other non-property income and expenses, interest expense, depreciation and amortization, and our general and administrative expenses. Consolidated NOI represents NOI generated by our wholly-owned properties. Pro-rata NOI represents our 80% share of NOI generated by our unconsolidated properties held in our Duke JV, European JV and UK JVs. We believe that NOI provides an accurate measure of the operating performance of our operating assets because NOI excludes certain items that are not associated with management of the properties. Additionally, NOI provides useful information to the investment community about the Company’s financial and operating performance when compared to other REITs since NOI is generally recognized as a standard measure of performance in the real estate industry. However, NOI presented by us may not be comparable to NOI reported by other REITs that may use different methodologies. NOI should not be considered an alternative to net income as an indication of our performance, or as an alternative to cash flow from operating activities as a measure of our liquidity or ability to make cash distributions to shareholders.
EBITDA
We define Adjusted EBITDA as net income (loss) computed in accordance with GAAP plus depreciation, amortization, taxes, interest expense and net change in fair value of non-qualifying derivative financial instruments, gain (loss) on conversion of equity interest to controlling interest, impairment charges, gain (loss) on asset dispositions, and proportionate share of interest, depreciation and amortization from unconsolidated joint ventures. EBITDA is presented solely as a supplemental disclosure with respect to liquidity because we believe it provides useful information regarding our ability to service or incur debt. Because all companies do not calculate EBITDA the same way, the presentation of EBITDA may not be comparable to similarly titled measures of other companies. The Company believes that net income is the financial measure calculated and presented in accordance with GAAP that is most directly comparable to EBITDA.

Funds from Operations
The National Association of Real Estate Investment Trusts ("NAREIT") created Funds from Operations ("FFO") as a non-GAAP supplemental measure of REIT operating performance, which reflects the impact on operations from trends in occupancy rates, rental rates and operating costs. The most directly comparable GAAP measure to FFO is net income. FFO is used commonly in the real estate industry because historical cost accounting for real estate assets in accordance


Supplemental Information | Third Quarter 2015 | 34


CHAMBERS STREET PROPERTIES (continued)
Non-GAAP Supplemental Financial Measures:


with GAAP implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, many industry analysts and investors consider presentations of operating results for REITs that use historical cost accounting to be insufficient.
We compute FFO in accordance with standards established by NAREIT. The revised NAREIT White Paper on FFO defines FFO as net income or loss computed in accordance with GAAP, excluding extraordinary items, as defined by GAAP, impairment charges and gains and losses from sales of depreciable operating property, plus real estate related depreciation and amortization (excluding amortization of deferred financing costs and depreciation of non-real estate assets), and after adjustment for unconsolidated partnerships and joint ventures.
Core Funds from Operations
We believe that Core Funds from Operations ("Core FFO") is a useful measure of management’s decision-making process and appropriately presents our results of operations on a comparative basis. The items listed below are excluded from NAREIT-defined FFO because they are subject to significant fluctuations from period to period that cause both positive and negative effects on our results of operations, often in inconsistent and unpredictable directions.
- Acquisition-related expenses: Acquisition-related expenses are primarily the result of the volume of our acquisitions completed during each period, and therefore we believe such acquisition costs are not reflective of our operating results during each period.
- Loss on early extinguishment of debt: Losses on early extinguishment of debt incurred in the current year are primarily a result of secured mortgage loan repayments typically associated with the sales of the underlying properties.
- Net change in fair value of non-qualifying derivative financial instruments and unrealized gains or losses on our investment in unconsolidated entities: Unrealized gains or losses that we have recognized during a given period are based primarily upon changes in the estimated fair market value of certain of our investments due to changes in market conditions and do not necessarily reflect the operating performance of these properties during the corresponding period.
- Other non-recurring expenses: Other non-recurring expenses such as company strategic planning, severance-related costs and costs related to the process of listing our common shares on the New York Stock Exchange and our modified “Dutch Auction” tender offer are not reflective of our operating results during each period.
We believe that Core FFO is useful to investors as a supplemental measure of operating performance because adjusting FFO to exclude acquisition costs, unrealized gains and/or losses or other non- recurring expenses provides investors a view of the performance of our portfolio over time, including if we cease to acquire properties on a frequent and regular basis and allows for a comparison of the performance of our portfolio with other REITs that are not currently engaging in acquisitions. We also believe that Core FFO may provide investors with a useful indication of our future performance, and of the sustainability of our current distribution policy. However, because Core FFO excludes acquisition costs, unrealized gains or losses and/or other non-recurring


Supplemental Information | Third Quarter 2015 | 35


CHAMBERS STREET PROPERTIES (continued)
Non-GAAP Supplemental Financial Measures:


expenses which are important components in an analysis of our historical performance, such supplemental measure should not be construed as a historical performance measure and may not be as useful a measure for estimating the value of our common shares.
Adjusted Funds from Operations
We calculate Adjusted Funds from Operations ("AFFO") as Core FFO exclusive of the net effects of (i) amortization associated with deferred financings costs; (ii) amortization of above- and below-market lease intangibles; (iii) amortization of premium on notes payable; (iv) amortization of deferred revenue related to tenant improvements; (v) non-cash share-based compensation expense; (vi) straight-line rental revenue; and (vii) recurring capital expenditures.
Not all REITs calculate FFO, Core FFO or AFFO (or an equivalent measure), in the same manner and therefore comparisons with other REITs may not be meaningful. None of these measures present, nor do we intend for them to present, a complete picture of our financial condition and/or operating performance. We believe that net income, as computed under GAAP, appropriately remains the primary measure of our performance and that FFO, Core FFO and AFFO, when considered in conjunction with net income, improves the investing public's understanding of the operating results of REITs and makes comparisons of REIT operating results more meaningful.


Supplemental Information | Third Quarter 2015 | 36



CHAMBERS STREET PROPERTIES (continued)
Non-GAAP Supplemental Financial Measures:
Reconciliation of Net Income to Consolidated Net Operating Income (NOI)
As of September 30, 2015
(In Thousands)
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2015
 
2014
 
2015
 
2014
Net Income
$
6,030

 
$
18,468

 
$
21,711

 
$
26,940

General and Administrative
9,935

 
7,230

 
31,505

 
20,047

Acquisition-related Expenses

 
265

 

 
555

Depreciation and Amortization
28,489

 
27,208

 
84,342

 
81,572

Total Expenses
38,424

 
34,703

 
115,847

 
102,174

Interest and Other Income
(52
)
 
(255
)
 
(144
)
 
(573
)
Interest Expense
12,352

 
13,685

 
38,397

 
41,653

Interest Expense and Net Change in Fair Value of Non-Qualifying Derivative Financial Instruments
(23
)
 
(68
)
 
(66
)
 
(80
)
Gain on Sale of Real Estate

 
(13,175
)
 
(5,844
)
 
(13,175
)
(Benefit) Provision for Income Taxes
(42
)
 
140

 
521

 
579

Equity in Income of Unconsolidated Entities
(4,238
)
 
(4,391
)
 
(14,419
)
 
(11,829
)
Net Operating Income - GAAP Basis
$
52,451

 
$
49,107

 
$
156,003

 
$
145,689

Straight-Line Rent Adjustment, Net
(2,444
)
 
(2,096
)
 
(5,847
)
 
(4,641
)
Above/Below Market Lease Amortization, Net
1,019

 
1,173

 
2,932

 
4,056

Net Operating Income - Cash Basis
$
51,026

 
$
48,184

 
$
153,088

 
$
145,104




Supplemental Information | Third Quarter 2015 | 37



CHAMBERS STREET PROPERTIES (continued)
Non-GAAP Supplemental Financial Measures:
Reconciliation of Net Income to Adjusted EBITDA
As of September 30, 2015
(In Thousands)
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2015
 
2014
 
2015
 
2014
Net Income
$
6,030

 
$
18,468

 
$
21,711

 
$
26,940

Interest Expense and Net Change in Fair Value of Derivative Financial Instruments
12,329

 
13,470

 
38,331

 
41,426

Pro Rata Share of Interest Expense from Unconsolidated Entities
1,358

 
1,736

 
4,096

 
5,235

Depreciation and Amortization
28,489

 
27,208

 
84,342

 
81,572

Pro Rata Share of Depreciation and Amortization from Unconsolidated Entities
6,266

 
8,163

 
19,408

 
25,172

(Benefit) Provision for Income Taxes
(42
)
 
140

 
521

 
579

EBITDA
$
54,430

 
$
69,185

 
$
168,409

 
$
180,924

Pro Rata Share of Loss from Extinguishment of Debt from Unconsolidated Entities

 

 
58

 

Gain on Sale of Real Estate

 
(13,175
)
 
(5,844
)
 
(13,175
)
Pro Rata Share of Gain on Sale of Real Estate from Unconsolidated Entities
116

 

 
(2,315
)
 

Adjusted EBITDA
$
54,546

 
$
56,010

 
$
160,308

 
$
167,749








Supplemental Information | Third Quarter 2015 | 38




 
Chambers Street Properties
47 Hulfish Street, Suite 210
Princeton, NJ 08542-3706
609 683-4900
www.ChambersStreet.com