Can Bank Fees Be Deducted

Parkway Reports First Quarter 2013 Results.

ORLANDO
 , city (1990 pop. 164,693), seat of Orange co., central Fla., in a lake region; inc. 1875. In a citrus fruit and farm area, it is one of the world’s most visited vacation spots.
, Fla., May 6, 2013 /PRNewswire/ — Parkway Properties, Inc.
(
NYSE

:
PKY

PKY Public Key Cryptography
) today announced results for its first quarter ended March 31,
2013.

* Highlights for First Quarter 2013 and Recent Events

*
FFO

 of $0.30 per share and
recurring
  
intr.v. re·curred, re·cur·ring, re·curs
1. To happen, come up, or show up again or repeatedly.

2. To return to one’s attention or memory.

3. To return in thought or discourse.
 FFO of $0.33 per share

*
FAD

 of $0.22 per share

* Occupancy of 88.7%, with portfolio 89.7% leased

* Completed a public offering of 12.65 million shares of common
stock resulting in $209.1 million of
net proceeds

 

* Completed or under contract to purchase $391.5 million, at share,
of office properties in targeted submarkets

* Revised outlook for 2013 to reflect investment and capital market
activities

(Logo: http://photos.prnewswire.com/prnh/20030513/PARKLOGO)

“As we continue to achieve critical mass in our target markets
and drive leasing gains, we are beginning to realize the value inherent
in our portfolio, as evidenced by our strong first quarter
results,” stated
James
 in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship.


James, rivers, United States

 R. Heistand, President and Chief Executive
Officer of Parkway. “Occupancy is now at 88.7% and improvements in
operating efficiencies led to a 200 basis point increase in our
NOI

 margin over the first quarter of last year. Our portfolio of
well-located assets is strongly positioned in key submarkets within some
of the country’s fastest growing cities, which should continue to
drive value and improved cash flow for the remainder of 2013.”

For the first quarter 2013,
funds from operations

 (“FFO”)
available to common shareholders was $17.3 million, or $0.30 per
diluted
  
tr.v. di·lut·ed, di·lut·ing, di·lutes
1. To make thinner or less concentrated by adding a liquid such as water.

2. To lessen the force, strength, purity, or brilliance of, especially by admixture.
 share. Recurring FFO was $18.7 million, or $0.33 per diluted share, and
funds available for distribution (“FAD”) was $12.5 million, or
$0.22 per diluted share. A reconciliation of FFO, recurring FFO and FAD
to net income is included on page 12. Net income, FFO, recurring FFO,
and FAD for the first quarter 2013, as well as a comparison to the prior
year period, are as follows:

On a year-over-year basis, FFO increased materially on a gross basis
but decreased on a per share basis. This is primarily the result of: (i)
a
repositioning
 Laparoscopic surgery The changing of a Pt’s position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf
Laparoscopic surgery.
 of the portfolio, with $1.0 billion in asset
acquisitions and $663.8 million of asset dispositions since the end of
2011; (ii) significant capital markets activities, including the
issuance of 45.1 million shares of common stock in public and private
offerings since the beginning of 2012 for gross proceeds of $608.7
million; and (iii) significant deleveraging of the Company, reducing net
debt to
EBITDA

 from 6.2x at
December
 see month.
 31, 2011 to 4.8x at March 31, 2013.
Parkway’s repositioned portfolio has resulted in improved asset
quality and location, which in turn has led to greater average gross
rent per square foot, less capital expenditures per square foot per
lease year, higher operating margins and higher customer retention
rates.

Operational Results

Occupancy at the end of the first quarter 2013 was 88.7%, compared
to 88.0% at the end of the prior quarter. Including leases that have
been signed but have yet to commence, the Company’s leased
percentage at the end of the first quarter 2013 was 89.7%.

Parkway’s share of recurring same-store net
operating income

 (“NOI”) was $16.1 million on a
GAAP

See generally accepted accounting principles (GAAP).
 basis during the first
quarter 2013, which was an increase of $259,000, or 1.6%, as compared to
the same period of the prior year. On a cash basis, the Company’s
share of recurring same-store NOI increased 14.4% to $16.0 million as
compared to the same period of the prior year.

The Company’s portfolio GAAP NOI margin was 62.2% during the
first quarter 2013, as compared to 60.2% during the same period of the
prior year.

Leasing Activity

During the first quarter 2013, Parkway signed a total of 501,000
square feet of leases at an average rent per square foot of $25.03 and
an average cost of $3.42 per square foot per year.

New & Expansion Leasing – During the first quarter 2013, the
Company signed 61,000 square feet of new leases at an average rent per
square foot of $22.18 and at an average cost of $6.41 per square foot
per year. Expansion leases during the quarter totaled 86,000 square feet
at an average rent per square foot of $25.48 and at an average cost of
$5.37 per square foot per year.

Renewal Leasing – Customer retention during the first quarter 2013
was 78.2%. The Company signed 354,000 square feet of renewal leases at
an average rent per square foot of $25.42, representing a 1.2% rate
decrease from the
expiring
  
v. ex·pired, ex·pir·ing, ex·pires

v.intr.
1. To come to an end; terminate:

2.
 rate. The average cost of renewal leases was
$2.31 per square foot per year.

The Company’s leasing activity for the first quarter 2013 has
led to greater revenue per square foot of total leases signed and
greater customer retention. Customer retention is an important metric
for the Company as renewal leases generally require less capital
expenditure per square foot per year than new leases and no
downtime

 to
release a vacated space.

Significant operational and leasing statistics for the quarter as
compared to prior quarters is as follows:

Acquisition and
Disposition

 Activity

On
January
 see month.
 17, 2013, Parkway completed the purchase of Tower Place
200, a 258,000 square foot office tower located in the
Buckhead

 
submarket
  
n.
A geographic, economic, or specialized subdivision of a market.

adj.
Being below what is usual in a particular market:  
 of
Atlanta
 , city (1990 pop. 394,017), state capital and seat of Fulton co., NW Ga., on the Chattahoochee R. and Peachtree Creek, near the Appalachian foothills; inc. 1847.
,
Georgia
 , Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia.
, for a gross purchase price of $56.3
million. Tower Place 200 was built in 1998 and is a 13-story, Class A
office tower that shares a parking garage with Parkway’s

neighboring
  
n.
1. One who lives near or next to another.

2. A person, place, or thing adjacent to or located near another.

3. A fellow human.

4. Used as a form of familiar address.

v.
 3344
Peachtree

 asset. The building was 82.7% occupied at
April 1, 2013 and is
unencumbered

 by debt.

On March 7, 2013, Parkway completed the purchase of eight office
properties totaling 1.0 million square feet located in the Deerwood
submarket of
Jacksonville, Florida

 for a gross purchase price of $130.0
million. The properties were developed in phases from 1996 through 2005
and were a combined 93.7% occupied at April 1, 2013. Parkway placed
secured financing on the properties simultaneous with closing totaling
$84.5 million that has a maturity date of April 1, 2023 and a fixed
interest rate of 3.9%.

On March 15, 2013, the Company entered into a purchase and sale
agreement to acquire an
approximately
  
adj.
1. Almost exact or correct:

2.
 75% interest in the US
Airways
 Anatomy The ‘pipes’–trachea, bronchi, bronchioles–through which air passes to and from the alveoli. See Small airways.
 Building, a 225,000 square foot office property located in the
Tempe
 , city (1990 pop. 141,865), Maricopa co., S Ariz., in the Salt River valley, a suburb of Phoenix; inc. 1894. Its population has grown markedly since the 1970s with the expansion of the greater Phoenix area.
 submarket of
Phoenix, Arizona
 (English: Phoenix, Navajo: Hoozdo, lit. “the place is hot”, Western Apache: Fiinigis) is the capital and the most populous city of the U.S.
 for a purchase price of $41.8 million. US
Airways will retain the remaining approximately 25% interest in the
property. The US Airways Building was built in 1999 and is LEED[sup.]
Gold
Certified

. It is located adjacent to Parkway’s
Hayden
   , Robert 1913-1980.

American poet whose works, such as Heart-Shape in the Dust (1940), often explore the history and experiences of African Americans.
 
Ferry
 vessel providing passage over a river, lake, or other body of water for passengers, vehicles, or freight; the term is also applied to the place where the crossing is made and, by extension, to overwater train or airplane transit.
 Lakeside and Tempe Gateway assets and shares a parking garage with Tempe
Gateway. The property is 100% leased to US Airways through April 2024.
US Airways has the option to
terminate

 its lease on December 31, 2016 or
December 31, 2021 with 12 months prior written notice. Closing is
expected to occur by the end of the second quarter 2013, subject to
customary closing conditions.

On March 20, 2013, the Company sold Atrium at Stoneridge, a 108,000
square foot office property located in
Columbia, South Carolina

, for a

gross sales

 prices of $3.1 million and recorded a gain of $542,000
during first quarter 2013. The Company received $3.0 million in net
proceeds from the sale, which was used to reduce amounts outstanding
under the Company’s
revolving credit

 facility.

On March 25, 2013, the Company purchased its co-investor’s 70%
interest in three office properties totaling 788,000 square feet located
in the
Westshore

 submarket of
Tampa, Florida

 owned by Parkway Properties
Office Fund II, L.P. (the ”
Tampa
 , city (1990 pop. 280,015), seat of Hillsborough co., W Fla., a port of entry with an impressive harbor on Tampa Bay; inc. 1855.
 Fund II Assets”). The
agreed-upon gross valuation of the Tampa Fund II Assets was $139.3
million. Parkway’s purchase price for its co-investor’s 70%
interest in the Tampa Fund II Assets was $97.5 million. Simultaneous
with closing, the Company assumed $40.7 million of existing mortgage

indebtedness

 that is secured by the properties, which represents its
co-investor’s 70% share of the approximately $58.1 million of
existing mortgage indebtedness. The three assets include Corporate
Center IV at
International Plaza

,
Cypress
 , city (1990 pop. 42,655), Orange co., S Calif. near Long Beach; inc. 1956. Forest Lawn–Cypress, a branch of the famous cemetery in Glendale, Calif.
 Center I, II and III, and The
Pointe. The Tampa Fund II Assets had a combined occupancy of 93.1% as of
April 1, 2013.

On April 26, 2013, the Company entered into a purchase and sale
agreement to acquire
Lincoln
 city (1991 pop. 79,980) and district, Lincolnshire, E England, in the Parts of Kesteven, on the Witham River.
 Place, a 140,000 square foot office
building located in the South Beach submarket of
Miami, Florida

. Lincoln
Place was built in 2002 and is comprised of 111,000 square feet of
office space and 29,000 square feet of retail space on the ground floor.
There is a five-story garage with 534 parking spaces adjacent to the
property that provides parking for daytime office tenants as well as
hourly parking on nights and weekends. The property is currently 100%
leased to
LNR

LNR Last Number Redial
LNR London News Radio
LNR Left/Node/Right
LNR Local Negotiated Rate
 Corporation through June 2021 with no renewal or early

termination

 option. Parkway is under contract to acquire Lincoln Place
in exchange for the assumption of the existing secured first mortgage,
which has a current outstanding balance of approximately $49.6 million,
a fixed interest rate of 5.9% and a maturity date of June 11, 2016, and
the issuance of 900,000 shares of operating partnership units. Based on
Parkway’s closing stock price of $18.20 on May 3, 2013, the
implied

 purchase price is approximately $66.0 million, or $472 per square foot.
Based on this implied purchase price, the property is expected to
generate an initial full-year cash net operating income yield of
approximately 6.7%. Closing is expected to occur by the end of the third
quarter 2013, subject to customary closing conditions, the successful
assumption of the existing first mortgage and Parkway’s
satisfactory completion of
due diligence

.

Capital Structure

At March 31, 2013, the Company did not have any amounts outstanding
under its revolving credit facility, had $125.0 million outstanding
under its
unsecured

 term loan and held $74.6 million in cash and cash
equivalents, of which $46.2 million of cash and cash equivalents was
Parkway’s share. Parkway’s share of secured debt totaled
$537.1 million at March 31, 2013.

On
February
 see month.
 21, 2013, Parkway closed on an $80 million first
mortgage secured by Phoenix Tower in
Houston, Texas
/) is the largest city in the state of Texas and the
. Phoenix Tower is a
626,000 square foot office tower located in the
Greenway Plaza

 submarket
of
Houston
 city (1990 pop. 1,630,553), seat of Harris co., SE Tex., a deepwater port on the Houston Ship Channel; inc. 1837.
Economy

The fourth largest city in the nation and the largest in the entire South and Southwest, Houston is a port of entry;
 that was 83.9% occupied as of April 1, 2013. The mortgage has
a maturity date of March 1, 2023 and a fixed interest rate of 3.9%.

At March 31, 2013, the Company’s net debt to EBITDA multiple
was 4.8x, using the quarter’s
annualized

Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared.
 EBITDA after adjusting for
the impact of acquisitions and dispositions completed during the period,
as compared to 5.3x at December 31, 2012, and 4.7x at March 31, 2012. At
March 31, 2013, the Company’s net debt plus preferred to EBITDA
multiple was 5.9x, as compared to 6.7x at December 31, 2012, and 6.5x at
March 31, 2012.

On March 25, 2013, the Company completed an underwritten public
offering of 12.65 million shares of its common stock for net proceeds of
approximately $209.0 million. The Company used the net proceeds to

redeem
 v. to buy back, as when an owner who had mortgaged his/her real property pays off the debt. The term also refers to paying the amount due and all charges after a foreclosure (due to failure to make payments when due) has begun.
 in full all of its outstanding 8.00% Series D Cumulative

Redeemable

 
Preferred Stock

, to fund acquisitions, to repay amounts
outstanding from time to time under its senior unsecured revolving
credit facility and for general corporate purposes.

On April 25, 2013, the Company
redeemed
  
tr.v. re·deemed, re·deem·ing, re·deems
1. To recover ownership of by paying a specified sum.

2. To pay off (a promissory note, for example).

3.
 all of its outstanding 8.00%
Series D Cumulative Redeemable Preferred Stock (the “Series D
Preferred”) using proceeds from its underwritten public offering of
common stock. The Company paid $136.3 million to redeem these shares,
which includes a $135.5 million
liquidation value

 and
accrued
  
v. ac·crued, ac·cru·ing, ac·crues

v.intr.
1. To come to one as a gain, addition, or increment:

2.
 dividends
of $723,000. The Company expects to record a $6.6 million
non-cash
charge

 during the second quarter of 2013, which represents the
difference between the costs associated with the issuance, including the
price at which such shares were paid, and the
redemption price

1. The price at which an open-end investment company will buy back its shares from the owners. In most cases, the redemption price is the net asset value per share.

2.
.

The
redemption

 of the Series D Preferred will have a material impact
on the Company’s financial
metrics
 Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM.
 beginning in the second quarter
of 2013. As a result of this redemption, the Company will have a lower
net debt plus preferred to EBITDA ratio, a greater fixed charge coverage
ratio and fixed cash payment savings of approximately $10.8 million on
an annual basis.

Common Dividend

The Company’s previously announced first quarter cash dividend
of $0.15 per share, which represents an annualized dividend of $0.60 per
share, was paid on March 27, 2013 to shareholders of record as of March
13, 2013.

2013 Revised Outlook

After considering the Company’s March 2013 underwritten public
common stock offering, April 2013 Series D Preferred redemption and
recent and pending investment activity, Parkway is revising its 2013 FFO
outlook from $1.17 to $1.27 per share to $1.10 to $1.20 and adjusting
its earnings (loss) per share (”
EPS

“) to ($0.29) to ($0.19).
The Company’s revised 2013 FFO outlook includes the negative impact
of a one-time, non-cash charge related to the redemption of the Series D
Preferred, totaling approximately $6.6 million, or $0.10 per share,
which will be recognized during second quarter 2013. Excluding this
one-time, non-cash charge, the Company’s FFO outlook range would
increase to $1.20 to $1.30 per share. The reconciliation of projected
EPS to projected FFO per diluted share is as follows:

The revised 2013 outlook is based on the core operating, financial
and investment assumptions described below. These assumptions reflect
the Company’s expectations based on its knowledge of current market
conditions and historical experience. All dollar amounts presented for
the revised 2013 outlook and the original 2013 outlook are at
Parkway’s share and dollars and shares are in thousands.

Variance

 within the outlook range may occur due to variations in the
recurring revenue and expenses of the Company, as well as certain
non-recurring items. The earnings outlook does not include the impact of
possible future gains or losses on early
extinguishment

 of debt,
possible future acquisitions or dispositions and related costs, the
impact of fluctuations in the Company’s stock price on share-based
compensation, possible future
impairment

 charges or other unusual
charges that may occur during the year, except as noted. It has been and
will continue to be the Company’s policy to not issue quarterly
earnings guidance or revise the annual earnings outlook unless a
material event occurs that impacts our original reported FFO outlook
range. This policy is intended to
lessen
  
v. less·ened, less·en·ing, less·ens

v.tr.
1. To make less; reduce.

2. Archaic To make little of; belittle.

v.intr.
To become less; decrease.
 the emphasis on short-term
movements that do not have a material impact on earnings or long-term
value of the Company.

In particular, we have assumed a non-cash share-based compensation
charge in G&A of $5 to $6 million. This assumed charge relates to
recent grants under our 2013
Omnibus
 see bus.
 Equity Incentive Plan (the
“Plan”), which will be voted on at our annual meeting of
stockholders to be held on May 16, 2013. However, please note that we
will begin to expense these grants only if and when we receive
stockholder approval of the Plan. The actual expense associated with
these grants is dependent on the public price for our common stock on
the date of adoption of the Plan by our stockholders, which could exceed
our assumed price and result in a share-based compensation charge that
is greater than we have assumed above.

Webcast and Conference Call

The Company will conduct its first quarter earnings conference call
on
Tuesday
 see week.
, May 7, 2013 at 11:00 a.m. Eastern Time. To participate in
the conference call, please dial 877-407-3982, or 1-201-493-6780 for
international participants, at least five minutes prior to the scheduled
start time. A live audio webcast will also be available on the
Company’s website (www.pky.com). A taped replay of the call can be
accessed 24 hours a day through May 14, 2013, by dialing 877-870-5176,
or 1-858-384-5517 for international callers, and using the passcode
411934. An audio replay will also be archived and indexed on the
Company’s website.

Annual Meeting

Parkway Properties, Inc. will host its 2013 Annual Meeting of
Shareholders on May 16, 2013, at 2:00 p.m. Central Time. The meeting
will be held on the ninth floor of Phoenix Tower located at 3200

Southwest Freeway

 in Houston, Texas.

About Parkway Properties

Parkway Properties, Inc. is a fully integrated, self-administered
and self-managed real estate investment trust (”
REIT

See real estate investment trust (REIT).
“)
specializing in the acquisition, ownership and management of quality
office properties in higher growth submarkets in the
Sunbelt

 region of
the
United States
 officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world’s third largest country in population and the fourth largest country in area.
. Parkway owns or has an interest in 45 office
properties located in eight states with an aggregate of approximately
13.0 million square feet at April 1, 2013. Parkway also offers fee-based
real estate services which manage and/or lease approximately 11.8
million square feet for third parties as of April 1, 2013. Additional
information about Parkway is available on the Company’s website at
www.pky.com.

Forward Looking Statement

Certain statements in this press release that are not in the present
or
past tense

n.
A verb tense used to express an action or a condition that occurred in or during the past. For example, in While she was sewing, he read aloud, was sewing and read are in the past tense.

Noun 1.
 or that discuss the Company’s expectations (including
any use of the words “anticipate,” “assume,”
“believe,” “estimate,” “expect,”
“forecast,” “guidance,” “intend,”
“may,” “might,” “outlook,”
“project”, “should” or similar expressions) are
forward-looking statements within the meaning of the federal securities
laws and as such are based upon the Company’s current beliefs as to
the outcome and timing of future events. There can be no assurance that
actual future developments affecting the Company will be those
anticipated by the Company. Examples of forward-looking statements
include projected 2013 fully diluted EPS, share of depreciation and
amortization, reported FFO per share, projected net operating income,
cap rates, internal rates of return, future dividend payment rates,
forecasts of FFO
accretion

, projected capital improvements, expected
sources of financing, expectations as to the timing of closing of
acquisitions, dispositions and other potential transactions and
descriptions
relating to
 relate prep

 relate prep → ,  
 these expectations. These forward-looking
statements involve risks and uncertainties (some of which are beyond the
control of the Company) and are subject to change based upon various
factors including, but not limited to, the following risks and
uncertainties: changes in the real estate industry and in performance of
the financial markets; the demand for and market acceptance of the
Company’s properties for rental purposes; the ability of the
Company to enter into new leases or renewal leases on
favorable
  
adj.
1. Advantageous; helpful:

2. Encouraging; propitious:

3.
 terms;
the amount and growth of the Company’s expenses; tenant financial
difficulties and general economic conditions, including interest rates,
as well as economic conditions in those areas where the Company owns
properties; risks associated with joint venture partners; risks
associated with the ownership and development of real property;
termination of property management contracts; the
bankruptcy
 in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt’s assets equitably among creditors and, in most
 or

insolvency

 of companies for which Parkway provides property management
services or the sale of these properties; the outcome of claims and

litigation

 involving or affecting the Company; the ability to satisfy
conditions necessary to close pending transactions and the ability to
successfully integrate pending transactions; applicable
regulatory
  
tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates
1. To control or direct according to rule, principle, or law.

2.
 changes; and other risks and uncertainties detailed from time to time in
the Company’s SEC filings. Should one or more of these risks or
uncertainties occur, or should underlying assumptions prove
incorrect

,
the Company’s business, financial condition, liquidity, cash flows
and financial results could differ materially from those expressed in
the Company’s forward-looking statements. Any forward-looking
statement speaks only as of the date on which it is made. New risks and
uncertainties arise over time, and it is not possible for us to predict
the occurrence of those matters or the manner in which they may affect
us. The Company does not undertake to update forward-looking statements
except as may be required by law.

Company’s Use of Non-GAAP Financial Measures

FFO, FAD, NOI and EBITDA, including related per share amounts, are
used by management, investors and industry analysts as supplemental
measures of operating performance of equity REITs and should be
evaluated along with GAAP net income and income per diluted share (the
most directly comparable GAAP measures), as well as cash flow from
operating activities, investing activities and financing activities, in
evaluating the operating performance of the Company. Management believes
that FFO, FAD, NOI and EBITDA are helpful to investors as supplemental
performance measures because these measures exclude the effect of
depreciation, amortization and gains or losses from sales of real
estate, all of which are based on historical costs which
implicitly
  
adj.
1. Implied or understood though not directly expressed:

2.
 assumes that the value of real estate diminishes predictably over time.
Since real estate values instead have historically risen or fallen with
market conditions, these non-GAAP measures can facilitate comparisons of
operating performance between periods and among other equity REITs.
Non-GAAP measures have limitations in that they do not reflect all of
the amounts associated with the Company’s results of operations
determined in
accordance

 with GAAP. FFO, FAD, NOI and EBITDA do not
represent cash generated from operating activities in accordance with
GAAP and are not necessarily
indicative
 see mood.
 of cash available to fund cash
needs as
disclosed
  
tr.v. dis·closed, dis·clos·ing, dis·clos·es
1. To expose to view, as by removing a cover; uncover.

2. To make known (something heretofore kept secret).
 in the Company’s
Consolidated
  
v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates

v.tr.
1. To unite into one system or whole; combine:
 Statements of Cash
Flows. FFO, FAD, NOI and EBITDA should not be considered as an
alternative to net income as an
indicator

 of the Company’s
operating performance or as an alternative to cash flows as a measure of
liquidity. The Company’s calculation of these non-GAAP measures may
not be comparable to similarly titled measures reported by other
companies.

FFO – Parkway computes FFO in accordance with standards established
by the National Association of Real Estate Investment Trusts
(”
NAREIT

“), which may not be comparable to FFO reported by
other REITs that do not define the term in accordance with the current
NAREIT definition. FFO is defined as net income, computed in accordance
with GAAP, reduced by preferred dividends, excluding gains or losses on

depreciable

Of, relating to, or being a long-term tangible asset that is subject to depreciation.
 real estate, plus real estate related depreciation and
amortization. Adjustments for Parkway’s share of partnerships and
joint ventures are included in the
computation

 of FFO on the same basis.
On
October
 see month.
 31, 2011, NAREIT issued updated guidance on reporting FFO
such that impairment losses on depreciable real estate should be
excluded from the computation of FFO for current and prior periods
presented.

Recurring FFO – In addition to FFO, Parkway also discloses recurring
FFO, which considers Parkway’s share of adjustments for
non-recurring lease termination fees, gains and losses on extinguishment
of debt, gains and losses, acquisition costs, fair value adjustments or
other unusual items. Although this is a non-GAAP measure that differs
from NAREIT’s definition of FFO, the Company believes it provides a
meaningful presentation of operating performance.

FAD – There is not a generally accepted definition established for
FAD. Therefore, the Company’s measure of FAD may not be comparable
to FAD reported by other REITs. Parkway defines FAD as FFO, excluding
the amortization of share-based compensation, amortization of above and
below market leases, straight line rent adjustments, gains and losses,
acquisition costs, fair value adjustments, gain or loss on
extinguishment of debt, amortization of loan costs, non-cash charges and
reduced by recurring non-revenue enhancing capital expenditures for
building improvements, tenant improvements and leasing costs.
Adjustments for Parkway’s share of partnerships and joint ventures
are included in the computation of FAD on the same basis.

EBITDA – Parkway defines EBITDA, a non-GAAP financial measure, as
net income before interest expense, amortization of financing costs,
amortization of share-based compensation, income taxes, depreciation,
amortization, acquisition costs, gains and losses on early
extinguishment of debt, other gains and losses and fair value
adjustments. Adjustments for Parkway’s share of partnerships and
joint ventures are included in the computation of EBITDA on the same
basis. EBITDA, as calculated by us, is not comparable to EBITDA reported
by other REITs that do not define EBITDA exactly as we do. EBITDA does
not represent cash generated from operating activities in accordance
with GAAP, and should not be considered an alternative to operating
income or net income as an indicator of performance or as an alternative
to cash flows from operating activities as an indicator of
liquidity.

NOI, Recurring NOI, Same-Store NOI and Recurring Same-Store NOI –
NOI includes income from real estate operations less property
operating
expenses

 (before interest expense and depreciation and amortization). In
addition to NOI, Parkway discloses recurring NOI, which considers
adjustments for non-recurring lease termination fees or other unusual
items. The Company’s disclosure of same-store NOI and recurring
same-store NOI includes those properties that were owned during the
entire current and prior year reporting periods and excludes properties
classified as
discontinued operations

.

Contact: Parkway Properties, Inc. Thomas E.
Blalock
 , Alfred 1899-1964.

American surgeon who developed surgical techniques for repairing congenital defects of the heart and associated blood vessels.
 Vice President
of
Investor Relations

 
Bank of America Center

 390 N. Orange
Ave

AVE Alta Velocidad Española
AVE Audio Video Entertainment
AVE Advertising Value Equivalent
., Suite
2400 Orlando, FL 32801 (407) 650-0593 www.pky.com

SOURCE Parkway Properties, Inc.