Note D - Acquisitions

On January 11, 2012, Parkway Properties Office Fund II, LP ("Fund II") purchased The Pointe, a 252,000 square foot Class A office building in the Westshore submarket of Tampa, Florida. The gross purchase price for The Pointe was $46.9 million and Parkway's ownership share is 30%. Parkway's equity contribution of $7.0 million was funded through availability under the Company's senior unsecured revolving credit facility.

On February 10, 2012, Fund II purchased Hayden Ferry Lakeside II ("Hayden Ferry II"), a 300,000 square foot Class A+ office building located in the Tempe submarket of Phoenix, and directly adjacent to Hayden Ferry Lakeside I ("Hayden Ferry I") purchased by Fund II in the second quarter of 2011. The gross purchase price was $86.0 million and Parkway's ownership share is 30%. Parkway's equity contribution of $10.8 million was initially funded through availability under the Company's existing senior unsecured revolving credit facility. This investment completed the total investment of Fund II.

On June 6, 2012, Parkway purchased Hearst Tower, a 972,000 square foot office tower located in the central business district in Charlotte, North Carolina. The gross purchase price was $250.0 million. The purchase of Hearst Tower was financed with proceeds received from the investment in the Company by TPG VI Pantera Holdings L.P., ("TPG") combined with borrowings on the Company's credit facility. For more information on TPG's investment see "Note M - TPG Securities Purchase Agreement".

The allocation of purchase price related to intangible assets and liabilities and weighted average amortization period (in years) for each class of asset or liability for The Pointe, Hayden Ferry II, and Hearst Tower is as follows (in thousands, except weighted average life):

		Amount	Weighted Average Life
Land	$	12,427	N/A
Buildings		300,808	40
Tenant improvements		26,478	6
Lease commissions		10,066	6
Lease in place value		27,196	6
Above market leases		5,439	5
Below market leases		(3,676)	7
Other intangibles		3,001	3

The allocation of purchase price for Hearst Tower was preliminary at June 30, 2012.

The unaudited pro forma effect on the Company's results of operations for the purchase of The Pointe, Hayden Ferry II, and Hearst Tower as if the purchase had occurred on January 1, 2011 is as follows (in thousands, except per share data):

		Three Months Ended				Six Months Ended
		June 30				June 30
		2012		2011		2012		2011
Revenues	$	60,796	$	50,039	$	121,057	$	89,174
Net income (loss) attributable to common stockholders	$	70	$	(12,132)	$	2,780	$	(17,453)
Basic net income (loss) attributable to common stockholders	$	-	$	(0.56)	$	0.12	$	(0.81)
Diluted net income (loss) attributable to common stockholders	$	-	$	(0.56)	$	0.12	$	(0.81)

For details regarding dispositions during the six months ended June 30, 2012, and to date through July 1, 2012, please see Note E - Discontinued Operations.