The following is a reconciliation of FFO and net income (loss) attributable to common stockholders for office properties and total consolidated entities for the three months ended June 30, 2012 and 2011. Amounts presented as "Unallocated and Other" represent primarily income and expense associated with providing management services, corporate general and administrative expense, interest expense on the Company's credit facility and preferred dividends.

	At or for the three months ended						At or for the three months ended
	June 30, 2012							June 30, 2011
	Office			Unallocated				Office		Unallocated
	Properties			and Other		Consolidated		Properties		and Other		Consolidated
	(in thousands)							(in thousands)
	(Unaudited)

Income from office and parking properties (a)	$	50,104	$	-	$	50,104	$	35,514	$	-	$	35,514
Management company income		-		4,973		4,973		-		3,532		3,532
Property operating expenses (b)		(19,657)		-		(19,657)		(14,196)		-		(14,196)
Depreciation and amortization		(19,548)		-		(19,548)		(12,017)		-		(12,017)
Management company expenses		-		(4,226)		(4,226)		-		(3,150)		(3,150)
Income tax benefit (expense)		-		11		11		-		(224)		(224)
General and administrative expenses		-		(3,918)		(3,918)		-		(3,709)		(3,709)
Acquisition costs		(506)		-		(506)		(14,380)		-		(14,380)
Other income		-		44		44		-		438		438
Equity in earnings of unconsolidated joint ventures		-		-		-		54		-		54
Interest expense (c)		(7,809)		(727)		(8,536)		(5,994)		(1,675)		(7,669)
Adjustment for noncontrolling - unit holders		-		73		73		-		-		-
Adjustment for noncontrolling - real estate partnerships		1,426		-		1,426		3,371		-		3,371
Loss from discontinued operations		(664)		-		(664)		(4,085)		-		(4,085)
Gain on sale of real estate from discontinued operations		3,197		-		3,197		4,292		-		4,292
Dividends on preferred stock		-		(2,710)		(2,710)		-		(2,444)		(2,444)
Dividends on convertible preferred stock		-		(1,011)		(1,011)		-		-		-
Net income (loss) attributable to common stockholders		6,543		(7,491)		(948)		(7,441)		(7,232)		(14,673)
Depreciation and amortization		19,548		-		19,548		12,017		-		12,017
Depreciation and amortization-discontinued operations		153		-		153		15,099		-		15,099
Depreciation and amortization-noncontrolling interest - real estate partnerships		(8,135)		-		(8,135)		(8,214)		-		(8,214)
Depreciation and amortization-unconsolidated joint ventures		-		-		-		72		-		72
Adjusted for noncontrolling interest-unit holders		-		(73)		(73)		-		-		-
Impairment loss on real estate-discontinued operations		-		-		-		1,700		-		1,700
Gain on sale of real estate for discontinued operations (Parkway's share)		(2,601)		-		(2,601)		(4,292)		-		(4,292)
Funds from operations attributable to common stockholders	$	15,508	$	(7,564)	$	7,944	$	8,941	$	(7,232)	$	1,709

Capital expenditures (d)	$	8,938	$	-	$	8,938	$	18,153	$	-	$	18,153

(a)	Included in income from office and parking properties are rental revenues, customer reimbursements, parking income and other income.
(b)	Included in property operating expenses are real estate taxes, insurance, contract services, repairs and maintenance and property operating expenses.
(c)	Interest expense for office properties represents interest expense on property secured mortgage debt. It does not include interest expense on the Company's unsecured credit facilities, which is included in "Unallocated and Other".
(d)	Capital expenditures include building improvements, tenant improvements and leasing costs.

The following is a reconciliation of FFO and net income (loss) attributable to common stockholders for office properties and total consolidated entities for the six months ended June 30, 2012 and 2011. Amounts presented as "Unallocated and Other" represent primarily income and expense associated with providing management services, corporate general and administrative expense, interest expense on the Company's credit facility and preferred dividends.

	At or for the six months ended							At or for the six months ended
	June 30, 2012							June 30, 2011
	Office			Unallocated				Office		Unallocated
	Properties			and Other		Consolidated		Properties		and Other		Consolidated
	(in thousands)							(in thousands)
	(Unaudited)

Income from office and parking properties (a)	$	95,959	$	-	$	95,959	$	63,321	$	-	$	63,321
Management company income		-		10,405		10,405		-		3,870		3,870
Property operating expenses (b)		(37,976)		-		(37,976)		(25,193)		-		(25,193)
Depreciation and amortization		(37,534)		-		(37,534)		(21,097)		-		(21,097)
Management company expenses		-		(8,760)		(8,760)		-		(3,954)		(3,954)
Income tax expense		-		(150)		(150)		-		(224)		(224)
General and administrative expenses		-		(7,517)		(7,517)		-		(7,465)		(7,465)
Acquisition costs		(1,332)		-		(1,332)		(2,764)		(13,965)		(16,729)
Other income		-		141		141		-		762		762
Equity in earnings of unconsolidated joint ventures		-		-		-		95		-		95
Interest expense (c)		(15,756)		(2,024)		(17,780)		(10,296)		(3,781)		(14,077)
Adjustment for noncontrolling-unit holders		-		(16)		(16)		-		-		-
Adjustment for noncontrolling-real estate partnerships		893		-		893		6,566		-		6,566
Income (loss) from discontinued operations		2,589		-		2,589		(6,991)		-		(6,991)
Gain on sale of real estate from discontinued operations		8,772		-		8,772		4,292		-		4,292
Change in fair value of contingent consideration		-		(216)		(216)		-		-		-
Dividends on preferred stock		-		(5,421)		(5,421)		-		(4,631)		(4,631)
Dividends on convertible preferred stock		-		(1,011)		(1,011)		-		-		-
Net income (loss) attributable to common stockholders		15,615		(14,569)		1,046		7,933		(29,388)		(21,455)
Depreciation and amortization		37,534		-		37,534		21,097		-		21,097
Depreciation and amortization-discontinued operations		571		-		571		30,919		-		30,919
Depreciation and amortization-noncontrolling interest-real estate partnerships		(16,176)		-		(16,176)		(13,777)		-		(13,777)
Depreciation and amortization-unconsolidated joint ventures		22		-		22		160		-		160
Noncontrolling interest-unit holders		-		16		16		-		-		-
Impairment loss on real estate-discontinued operations		-		-		-		1,700		-		1,700
Gain on sale of real estate for discontinued operations (Parkway's share)		(4,934)		-		(4,934)		(4,292)		-		(4,292)
Funds from operations available to common stockholders	$	32,632	$	(14,553)	$	18,079	$	43,740	$	(29,388)	$	14,352

Total assets	$	1,510,051	$	87,607	$	1,597,658	$	2,005,796	$	83,892		2,089,688

Office and parking properties	$	1,249,133	$	-	$	1,249,133	$	1,719,258	$	-	$	1,719,258

Capital expenditures (d)	$	18,641	$	-	$	18,641	$	27,648	$	-	$	27,648

(a)	Included in income from office and parking properties are rental revenues, customer reimbursements, parking income and other income.
(b)	Included in property operating expenses are real estate taxes, insurance, contract services, repairs and maintenance and property operating expenses
(c)	Interest expense for office properties represents interest expense on property secured mortgage debt. It does not include interest expense on the Company's unsecured credit facilities, which is included in "Unallocated and Other".
(d)	Capital expenditures include building improvements, tenant improvements and leasing costs.