<PAGE>
Table of Contents
Company Overview
Corporate Profile
Board of Trustees/Executive Officers/Second Quarter Highlights
Quarterly and Year to Date Financial Results
Consolidated Statement of Income
Consolidated Balance Sheet
Calculation of Funds from Operations and Funds Available for Distribution
Quarterly and Year to Date Operating Information
Same Property Analysis
Leasing Activity Analysis
Office Lease Expiration Schedule
Industrial Lease Expiration Schedule
Same Store Analysis
Development Projects
Market Capitalization Information
Debt Activity
Capital Events Year-to-Date
Indebtedness Schedule
Indebtedness Allocation
Variable Interest Rate Hedge Agreements
Indebtedness Maturities Summary
Portfolio Information
Total Office and Industrial Properties and Square Feet Owned and Under
Contract
Property Summary
Top Ten Office Tenants by Annualized Base Rent
Top Ten Office Tenants by Percentage of Square Footage in Portfolio
Top Ten Industrial Tenants by Annualized Base Rent
Top Ten Industrial Tenants by Percentage of Square Footage in Portfolio
PGE Stock Performance YTD
Investor Information
Supplemental Financial and Operating Statistics
Prime Group Realty Trust
1 (NYSE: PGE) 2Q 2000
<PAGE>
Corporate Profile
We are a fully-integrated real estate company providing property management,
leasing, marketing, acquisition, development, redevelopment, construction,
finance and other related services. We intend to qualify as a real estate
investment trust ("REIT") for federal income tax purposes. As of June 30, 2000,
through Prime Group Realty, L.P., our operating partnership, we own 28 office
properties containing an aggregate of approximately 8.6 million net rentable
square feet and 37 industrial properties containing an aggregate of
approximately 4.8 million net rentable square feet. In addition, we own a 50%
common interest in a joint venture, which owns an office property containing
944,556 net rentable square feet. The above properties are located primarily in
the Chicago metropolitan area. We also own approximately 218.9 acres of
developable land and rights to acquire more than 159.3 additional acres of
developable land which management believes could be developed with approximately
4.3 million rentable square feet of additional office space and 6.0 million
square feet of additional industrial space.
In terms of net rentable square feet, approximately 89% of our office properties
and all of our industrial properties are located in the Chicago metropolitan
area in prime business locations within established business communities. The
properties located in metropolitan Chicago account for approximately 88.9% of
our total rental and tenant reimbursement revenue for the six months ended June
30, 2000. Our remaining office properties are located in Cleveland, Ohio;
Phoenix, Arizona; Knoxville, Tennessee; and Milwaukee, Wisconsin.
On August 14, 2000, we announced that the Board of Trustees of PGE decided to
engage Prudential Securities, Inc. and Lehman Brothers to assist the Company in
studying its strategic alternatives. The alternatives being studied include, but
are not necessarily limited to, a merger or other business combination involving
the Company, a sale of all or part of the assets of the Company, or the
completion of the Company's previously announced asset sale and stock repurchase
program.
We intend to access multiple sources of capital to fund future acquisition and
development activities. These capital sources may include undistributed cash
flow, borrowing under credit facilities, proceeds from the issuance of long-
term, tax-exempt bonds, joint venture arrangements, property sales, the issuance
and sale of debt or equity securities and other bank and/or institutional
borrowings. There can be no assurance that any such financing will be obtained.
Supplemental Financial and Operating Statistics
Prime Group Realty Trust
2 (NYSE: PGE) 2Q 2000
<PAGE>
Board of Trustees
-----------------
Richard S. Curto
Chief Executive Officer, Prime Group Realty Trust
Jacque M. Ducharme
President, Julien J. Studley, Inc.
Stephen J. Nardi
Vice-Chairman of the Board, Prime Group Realty Trust
Christopher J. Nassetta
President and Chief Executive Officer, Host Marriott Corporation
Michael W. Reschke
Chairman of the Board, Prime Group Realty Trust
The Honorable Governor James R. Thompson
Partner and Chairman of the Executive Committee, Winston & Strawn
Executive Officers
------------------
Michael W. Reschke
Chairman of the Board, Trustee
Richard S. Curto
Chief Executive Officer
Richard S. Abraham
Co-President, CEO Prime Realty Services
Louis G. Conforti
Co-President, Acting Chief Financial Officer
Jeffrey A. Patterson
Co-President, Chief Investment Officer
James F. Hoffman
Senior Vice-President, General Counsel and Secretary
Edward S. Hadesman
President, Industrial Division
Philip A. Hoffer
Executive Vice President, RE Operations and Asset Management
Roy P. Rendino
Senior Vice President, Finance and Chief Accounting Officer
Christopher "Kit" J. Sultz
Senior Vice President, Industrial Operations
Supplemental Financial Operating Statistics
Prime Group Realty Trust
3 (NYSE: PGE) 2Q 2000
<PAGE>
Second Quarter Highlights
Diluted FFO per share for the second quarter was $0.51, a decrease from $0.60
reported in the prior year period. On a cash basis, without straight-line rent,
diluted FFO per share for the second quarter was $0.43, a decrease from $0.58
reported in the prior year period.
For the second quarter, the Company realized "same store" growth in property net
operating income of 3.0% for the 21 office and 29 industrial properties that
were owned during the second quarters of both 1999 and 2000.
During the quarter, the Company signed 48 new leases totaling 447,950 square
feet and renewed 25 leases totaling 261,528 square feet. Overall, net rental
rates on lease renewals averaged an 8.6% increase over prior net rents. Net
rental rates on office lease renewals in the central business district averaged
a 28.8% increase over prior net rents.
Construction commenced in April, 2000 on Dearborn Center, a 1.5 million square
foot office project in downtown Chicago. During the quarter, the Company
received $295.0 million of financing commitments for the project and signed a
69,366 square foot lease with a national law firm, bringing the project to a 50%
preleasing level.
The Company sold ten non-core assets during the quarter, totaling 1,109,437
square feet, located in Tennessee and Ohio, for net cash proceeds of $12.1
million, after debt retirement of $24.9 million.
Supplemental Financial Operating Statistics
Prime Group Realty Trust
4 (NYSE: PGE) 2Q 2000
<PAGE>
Consolidated Statements of Income
(000's omitted, except per share data)
(Unaudited)
June 30, 2000
<TABLE>
<CAPTION>
Three Months ended Six Months ended
June 30 June 30
2000 1999 2000 1999
-------------------------------------------
<S> <C> <C> <C> <C>
Revenue
Rental $32,954 $33,925 $ 66,808 $ 66,746
Tenant reimbursements 15,616 13,484 32,088 26,385
Other property revenues 2,429 1,822 4,642 3,588
Mortgage note interest 2,127 1,604 4,138 3,110
Other 2,274 2,077 3,199 2,162
--------- --------- ---------- -----------
Total revenue 55,400 52,912 110,875 101,991
Expenses
Property operations 11,888 10,597 24,698 21,247
Real estate taxes 10,486 9,774 20,875 19,149
Depreciation and amortization 9,834 8,680 19,066 16,638
Interest 14,145 11,545 27,131 21,923
General and administrative 2,339 1,757 4,603 3,807
Loss on land development option - - - 600
--------- --------- ---------- -----------
Total Expenses 48,692 42,353 96,373 83,364
--------- --------- ---------- -----------
Income before (loss) gain on sales
of real estate, minority interests
and extraordinary item 6,708 10,559 14,502 18,627
(Loss) gain on sales of real estate, net (3,781) 4,357 (2,585) 4,357
--------- --------- ---------- -----------
Income before minority interests and
extraordinary item 2,927 14,916 11,917 22,984
Minority interests 47 (4,861) (2,373) (6,917)
--------- --------- ---------- -----------
Income before extraordinary item 2,974 10,055 9,544 16,067
Extraordinary loss on extinguishment
of debt, net of minority interests
of $296 (408) - (408) -
--------- --------- ---------- -----------
Net income 2,566 10,055 9,136 16,067
Net income allocated to
preferred shareholders (3,037) (3,030) (6,074) (6,030)
--------- --------- ---------- -----------
Net (loss) income available to
common shareholders $ (471) $ 7,025 $ 3,062 $ 10,037
========= ========= ========== ===========
Basic and diluted earnings available to
common shares per weighted-average
common share:
Income before (loss) gain on sales of
real estate and extraordinary items $ 0.14 $ 0.29 $ 0.33 $ 0.49
(Loss) gain on sales of real estate,
net of minority interests (0.14) 0.17 (0.10) 0.17
Extraordinary loss on extinguishment
of debt, net of minority interests (0.03) - (0.03) -
--------- --------- ---------- -----------
Net (loss) income available per
weighted-average common share of
beneficial interest $ (0.03) $ 0.46 $ 0.20 $ 0.66
========= ========= ========== ===========
</TABLE>
Supplemental Financial and Operating Statistics
Prime Group Realty Trust
5 (NYSE: PGE) 2Q 2000
<PAGE>
Consolidated Statements of Income
(000's omitted, except per share data)
(Unaudited)
June 30, 2000
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30 June 30
2000 1999 2000 1999
--------------------------------------------
<S> <C> <C> <C> <C>
Net income allocated to common
shareholders $ (471) $ 7,025 $ 3,062 $ 10,037
Adjustments to reconcile to
Funds from Operations:
Real estate depreciation and amortization 8,495 8,088 16,701 15,421
Amortization of costs for leases assumed 255 246 417 491
Joint venture adjustments 862 - 1,725 -
Adjustment for sale of operating property 4,338 (4,357) 4,468 (4,357)
Extraordinary loss on extinguishment debt 408 - 408 -
Minority interests (47) 4,861 2,373 6,917
--------------------------------------------
Funds from Operations, including straight-line rental revenue 13,840 15,863 29,154 28,509
Straight line rental revenue (2,332) (614) (4,586) (1,208)
Straight line rental revenue from joint venture (158) - (316) -
--------------------------------------------
Funds from Operations, excluding straight-line rental revenue $ 11,350 $ 15,249 $ 24,252 $ 27,301
============================================
Funds from Operations per common share
of beneficial interest, including
straight-line rental revenue:
Basic $ 0.52 $ 0.62 $ 1.11 $ 1.12
--------------------------------------------
Diluted $ 0.51 $ 0.60 $ 1.09 $ 1.09
--------------------------------------------
Funds from Operations per common share
of beneficial interest, excluding
straight-line rental revenue:
Basic $ 0.43 $ 0.59 $ 0.99 $ 1.07
--------------------------------------------
Diluted $ 0.43 $ 0.58 $ 0.91 $ 1.05
--------------------------------------------
Weighted average shares of beneficial interest:
Basic 26,373 25,666 26,219 25,563
--------------------------------------------
Diluted 28,517 27,739 28,305 27,601
--------------------------------------------
</TABLE>
Supplemental Financial and Operating Statistics
Prime Group Realty Trust
6 (NYSE: PGE) 2Q 2000
<PAGE>
Balance Sheet
June 30, 2000
<TABLE>
<CAPTION>
June 30, December 31,
2000 1999
(Unaudited)
---------------------------------------
<S> <C> <C>
Assets
Real estate, at cost:
Land $ 178,998 $ 183,295
Building and improvements 909,881 928,567
Tenant improvements 39,437 39,232
---------------------------------------
1,128,316 1,151,094
Accumulated depreciation (48,922) (37,977)
---------------------------------------
1,079,394 1,113,117
Property under development 137,839 125,724
Property held for sale 23,850 -
---------------------------------------
1,241,083 1,238,841
Mortgage note receivable 89,826 82,687
Cash and cash equivalents 28,691 21,167
Tenant receivables 7,283 11,438
Restricted cash escrows 54,302 42,140
Deferred rent receivable 13,784 9,501
Deferred costs, net 27,830 26,901
Other 18,359 11,500
---------------------------------------
Total assets $ 1,481,158 $ 1,444,175
=======================================
Liabilities and Shareholders' Equity
Mortgage notes payable $ 781,834 $ 705,194
Credit facilities 10,812 19,527
Bonds payable 57,150 74,450
Accrued interest payable 2,843 3,508
Accrued real estate taxes 41,012 40,689
Accounts payable and accrued expenses 31,190 36,133
Liabilities for leases assumed 2,827 3,235
Dividends payable 8,152 8,122
Other 10,811 10,909
---------------------------------------
Total liabilities 946,631 901,767
Minority interests:
Operating Partnership 165,970 168,070
Other 1,000 1,000
Series A - Cumulative Convertible Preferred Shares, 2,000,000 shares designated,
issued and outstanding at June 30, 2000 and December 31, 1999 39,777 39,703
Shareholders' equity:
Preferred Shares, $0.01 par value; 30,000,000 shares authorized:
Series B - Cumulative Redeemable Preferred Shares, 4,000,000 shares
designated, issued and outstanding at June 30, 2000 and December 31, 1999 40 40
Common Shares, $0.01 par value; 100,000,000 shares authorized: 15,302,223
and 15,189,438 shares issued and outstanding at June 30, 2000 and December
31, 1999, respectively 153 152
Additional paid-in capital 322,733 321,357
Retained earnings 4,854 12,086
---------------------------------------
Total shareholders' equity 327,780 333,635
---------------------------------------
Total liabilities and shareholders' equity $ 1,481,158 $ 1,444,175
=======================================
</TABLE>
Supplemental Financial and Operating Statistics
Prime Group Realty Trust
7 (NYSE: PGE) 2Q 2000
<PAGE>
Funds from Operation
Using New NAREIT Definition
<TABLE>
<CAPTION>
Three Months
Ended Ended
June 30 March 31
2000 2000
--------------------------------
<S> <C> <C>
Net Income Allocated to Common Shareholders $ (471,000) $ 3,533,000
FFO Adjustments
---------------
Real Estate Depreciation and Amortization 8,495,000 8,206,000
Amortization of Costs for Leases Assumed 255,000 162,000
Joint Venture Adjustments 862,000 863,000
Adjustment for sale of operating properties 4,338,000 130,000
Minority Interests (47,000) 2,420,000
Extraordinary Loss 408,000 -
--------------------------------
Basic Funds from Operations 13,840,000 15,314,000
Convertible Preferred Share Distributions 787,000 787,000
--------------------------------
Diluted Funds from Operations $ 14,627,000 $ 16,101,000
================================
Weighted Average Shares
-----------------------
Common Shares Outstanding 15,286,478 15,215,512
Operating Partnership Units Outstanding 11,086,705 10,848,313
--------------------------------
Weighted Average Shares-Basic 26,373,183 26,063,825
Convertible Preferred Shares Outstanding 2,000,000 2,000,000
Effect of Diluted Securities-Employee Stock Options 143,889 74,493
--------------------------------
Weighted Average Shares-Diluted 28,517,072 28,138,318
================================
Basic Funds from Operations per Share $ 0.52 $ 0.59
Diluted Funds from Operations per Share $ 0.51 $ 0.57
</TABLE>
Supplemental Financial and Operating Statistics
Prime Group Realty Trust
8 (NYSE: PGE) 2Q 2000
<PAGE>
Same Property Analysis
June 30, 2000
<TABLE>
<CAPTION>
($ in thousands)
Three Months Ended June 30, Six Months Ended June 30,
2000 1999 % Change 2000 1999 % Change
---------------------------------------------- -------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Number of Properties 50 50 0.00% 48 48 0.00%
REVENUE:
Minimum Rents 21,391,335 20,262,738 5.57% 42,524,783 40,044,749 6.19%
Recoveries from Tenants 10,211,534 9,194,818 11.06% 20,146,802 18,316,824 9.99%
Other Income 1,517,153 2,498,535 -39.28% 3,141,047 2,960,987 6.08%
--------------------------------------------- -------------------------------------------
33,120,022 31,956,091 3.64% 65,812,632 61,322,560 7.32%
EXPENSES:
Property Operating 8,762,346 8,671,111 1.05% 17,515,821 16,987,946 3.11%
Real Estate Taxes 7,041,518 6,758,728 4.18% 13,983,655 13,050,736 7.15%
Other Expenses 605,956 304,077 99.28% 1,256,317 533,537 135.47%
--------------------------------------------- -------------------------------------------
16,409,820 15,733,916 4.30% 32,755,793 30,572,219 7.14%
--------------------------------------------- -------------------------------------------
NET OPERATING INCOME 16,710,202 16,222,175 3.01% 33,056,839 30,750,341 7.50%
============================================= ===========================================
</TABLE>
Supplemental Financial and Operating Statistics
Prime Group Realty Trust
9 (NYSE: PGE) 2Q 2000
<PAGE>
Leasing Activity Analysis
June 30, 2000
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
04/01/00 06/30/00 SF Number
Net Net 04/01/00 04/01/00 06/30/00 06/30/00 Number of of Move of New SF of New
2ND QTR NEW LEASING Rentable Rentable Leased SF Occupied SF Leased SF Occupied SF Move Outs Outs Leases Leasing
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Downtown Office* 5,432,872 5,432,733 5,249,625 5,186,276 5,313,033 5,240,559 12 19,357 15 60,467
Suburban Office 3,694,573 3,355,790 3,482,902 3,312,819 3,255,423 3,113,701 21 101,875 31 215,436
--------------------------------------------------------------------------------------------------------------
Total Office 9,127,445 8,788,523 8,732,527 8,499,095 8,568,456 8,354,260 33 121,232 46 275,903
Industrial** 5,372,112 5,372,112 4,615,236 4,615,236 4,893,613 4,615,236 0 0 2 172,047
--------------------------------------------------------------------------------------------------------------
Total Portfolio 14,499,557 14,160,635 13,347,763 13,114,331 13,462,069 12,969,496 33 121,232 48 447,950
==============================================================================================================
<CAPTION>
-------------------------------------------
04/01/00 04/01/00 06/30/00 06/30/00
2ND QTR NEW LEASING Leased % Occupied % Leased % Occupied %
-------------------------------------------
<S> <C> <C> <C> <C>
Downtown Office* 96.6% 95.5% 97.8% 96.5%
Suburban Office 94.3% 89.7% 97.0% 92.8%
-------------------------------------------
Total Office 95.7% 93.1% 97.5% 95.1%
Industrial** 85.9% 85.9% 91.1% 85.9%
-------------------------------------------
Total Portfolio 92.1% 90.4% 95.1% 91.6%
===========================================
</TABLE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
01/01/00 06/30/00 SF Number
Year-To-Date Net Net 01/01/00 01/01/00 06/30/00 06/30/00 Number of of Move of New SF of New
NEW LEASING Rentable Rentable Leased SF Occupied SF Leased SF Occupied SF Move Outs Outs Leases Leasing
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Downtown Office* 5,397,646 5,432,733 5,194,508 5,153,513 5,313,033 5,240,559 17 37,672 30 142,602
Suburban Office 3,608,127 3,355,790 3,407,719 3,256,823 3,255,423 3,113,701 35 237,881 60 395,044
--------------------------------------------------------------------------------------------------------------
Total Office 9,005,773 8,788,523 8,602,227 8,410,336 8,568,456 8,354,260 52 275,553 90 537,646
Industrial** 5,252,112 5,372,112 4,444,779 4,444,779 4,893,613 4,615,236 1 65,804 3 288,308
--------------------------------------------------------------------------------------------------------------
Total Portfolio 14,257,885 14,160,635 13,047,006 12,855,115 13,462,069 12,969,496 53 341,357 93 825,954
==============================================================================================================
<CAPTION>
------------------------------------------
Year-To-Date 1/01/00 1/01/00 6/30/00 6/30/00
NEW LEASING Leased % Occupied % Leased % Occupied %
------------------------------------------
<S> <C> <C> <C> <C>
Downtown Office* 96.2% 95.5% 97.8% 96.5%
Suburban Office 94.4% 90.3% 97.0% 92.8%
------------------------------------------
Total Office 95.5% 93.4% 97.5% 95.1%
Industrial** 84.6% 84.6% 91.1% 85.9%
------------------------------------------
Total Portfolio 91.5% 90.2% 95.1% 91.6%
==========================================
</TABLE>
* Does not include 180 North Lasalle Street
** Does not include 2000 USG Drive
Supplemental Financial and Operating Statistics
Prime Group Realty Trust
10 (NYSE: PGE) 2Q 2000
<PAGE>
<TABLE>
<CAPTION>
Leasing Activity Analysis
Continued:
----------------------------------------------------------------------------------------------------
Percentage
Number of SF up for SF of Leases Renewal Renewal Net Increase in
2ND QTR RENEWAL LEASING Renewals Renewal Renewed Percentage Old Net Rent Rent Avg Rent
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Downtown Office* 11 53,669 25,398 47.3% $11.21 $14.43 28.77%
Suburban Office 13 163,689 131,948 80.6% $15.55 $16.14 3.81%
----------------------------------------------------------------------------------------------------
Total Office 24 217,358 157,346 72.4% $14.85 $15.86 6.85%
Industrial** 1 261,145 104,182 39.9% $ 3.25 $ 3.92 20.62%
----------------------------------------------------------------------------------------------------
Total Portfolio 25 478,503 261,528 54.7% $10.23 $11.11 8.59%
====================================================================================================
----------------------------------------------------------------------------------------------------
Percentage
Number of SF up for SF of Leases Renewal Renewal Net Increase in
Year-To-Date RENEWAL LEASING Renewals Renewal Renewed Percentage Old Net Rent Rent Avg Rent
----------------------------------------------------------------------------------------------------
Downtown Office* 17 80,105 52,551 65.6% $10.91 $13.84 26.82%
Suburban Office 28 281,919 264,937 94.0% $13.17 $15.23 15.72%
----------------------------------------------------------------------------------------------------
Total Office 45 362,024 317,488 87.7% $12.79 $15.00 17.28%
Industrial** 4 347,023 213,206 61.4% $ 3.49 $ 4.10 17.61%
----------------------------------------------------------------------------------------------------
Total Portfolio 49 709,047 530,694 74.8% $ 9.05 $10.62 17.33%
====================================================================================================
</TABLE>
* Does not include 180 North LaSalle Street
** Does not include 2000 USG Drive
Supplemental Financial and Operating Statistics
Prime Group Realty Trust
11 (NYSE: PGE) 2Q 2000
<PAGE>
Office Lease Expiration Schedule
June 30, 2000
Office Lease Expiration Schedule
--------------------------------
<TABLE>
<CAPTION>
Average Annual
Annual Base** Rent per Net Net Rentable Percentage of
Number of Rent Under Rentable SF Area Subject Total Leased SF
Year of Lease Expiring Expiring Percentage of Represented by to Expiring Represented by
Expiration Leases Leases Expiring Leases Expiring Leases Leases (SF) Expiring Leases
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
2000 125 8,801,742 5.46% $14.20 619,816 6.85%
2001 155 16,148,152 10.01% $16.05 1,005,993 11.12%
2002 143 13,033,953 8.08% $18.67 698,234 7.71%
2003 128 9,312,664 5.78% $14.80 629,399 6.95%
2004 103 11,919,082 7.39% $16.86 706,954 7.81%
2005 76 11,352,941 7.04% $15.53 731,239 8.08%
2006 44 16,869,087 10.46% $13.65 1,235,849 13.66%
2007 34 33,475,281 20.76% $25.36 1,319,994 14.58%
2008 28 8,083,249 5.01% $16.39 493,323 5.45%
2009+ 64 32,261,517 20.01% $20.04 1,609,719 17.79%
----- --- ----------- ------- ------ --------- -------
Total/Average 900 161,257,668 100.00% $17.82 9,050,520 100.00%
</TABLE>
**Does not include Month-To-Month leases
Percentage of Lease Expiration*
[GRAPH APPEARS HERE]
* = Based upon Annual Base Rent
Supplemental Financial and Operating Statistics
Prime Group Realty Trust
12 (NYSE: PGE) 2Q 2000
<PAGE>
Industrial Lease Expiration Schedule
June 30, 2000
<TABLE>
<CAPTION>
Industrial Lease Expiration Schedule
------------------------------------
Average Annual
Annual Base** Rent per Net Net Rentable Percentage of
Number of Rent Under Rentable SF Area Subject Total Leased SF
Year of Lease Expiring Expiring Percentage of Represented by to Expiring Represented by
Expiration Leases Leases Expiring Leases Expiring Leases Leases (SF) Expiring Leases
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
2000 14 2,694,379 13.47% $3.40 792,696 15.68%
2001 8 1,180,376 5.90% $4.82 245,108 4.85%
2002 7 1,303,884 6.52% $3.74 348,285 6.89%
2003 5 690,500 3.45% $6.12 112,859 2.23%
2004 12 4,310,987 21.56% $3.44 1,254,228 24.81%
2005 10 1,725,062 8.63% $2.82 612,551 12.12%
2006 13 2,924,092 14.62% $4.66 627,529 12.42%
2007 2 294,377 1.47% $6.12 48,089 0.95%
2008 0 0 0.00% $0.00 0 0.00%
2009+ 10 4,874,318 24.37% $4.81 1,012,986 20.04%
----- -- ---------- ------- ----- --------- -------
Total/Average 81 19,997,975 100.00% $3.96 5,054,331 100.00%
</TABLE>
**Does not include Month-To-Month leases
[GRAPH APPEARS HERE]
Supplemental Financial and Operating Statistics
Prime Group Realty Trust
13 (NYSE: PGE) 2Q 2000
<PAGE>
Same Store Analysis
June 30, 2000
<TABLE>
<CAPTION>
6/30/2000 vs. 6/30/1999
Building Size SF Leased SF Leased % Leased % Leased
(SF) 6/30/00 6/30/99 6/30/00 6/30/99
-----------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Enterprise Center I - - - - -
Enterprise Center II 169,435 28,978 - 17.1% 0.0%
Enterprise Center III 291,550 291,550 291,550 100.0% 100.0%
Enterprise Center IV 87,483 85,799 85,799 98.1% 98.1%
Enterprise Center EC 54,070 40,000 40,000 74.0% 74.0%
Enterprise Center V 196,475 196,475 196,475 100.0% 100.0%
Enterprise Center VI 250,266 248,255 248,255 99.2% 99.2%
HEC 76,821 69,825 69,825 90.9% 90.9%
475 Superior 450,000 450,000 450,000 100.0% 100.0%
Enterprise Center VII 462,131 278,930 223,266 60.4% 48.3%
Enterprise Center VIII 239,752 116,261 239,752 48.5% 100.0%
Enterprise Center IX 156,996 156,996 156,996 100.0% 100.0%
Enterprise Center X 172,945 169,829 169,829 98.2% 98.2%
Arlington I-III 304,506 304,506 241,096 100.0% 79.2%
342 Carol 67,935 67,935 67,935 100.0% 100.0%
343 Carol 30,084 30,084 30,084 100.0% 100.0%
370 Carol 60,290 60,290 60,290 100.0% 100.0%
388 Carol 40,920 40,920 40,920 100.0% 100.0%
200 Fullerton 66,254 66,254 66,254 100.0% 100.0%
350 Randy 25,200 25,200 25,200 100.0% 100.0%
550 Kehoe 44,575 44,575 44,575 100.0% 100.0%
4160 Madison 79,532 79,532 79,532 100.0% 100.0%
4211 Madison 90,344 90,344 90,344 100.0% 100.0%
4300 Madison 127,129 127,129 76,189 100.0% 59.9%
1401 S. Jefferson 17,265 17,265 17,265 100.0% 100.0%
11039 Gage 21,935 21,935 21,935 100.0% 100.0%
11045 Gage 136,600 136,600 136,600 100.0% 100.0%
-----------------------------------------------------------
Industrial Property Totals 3,720,493 3,245,467 3,169,966 87.2% 85.2%
# of Industrial Properties: 29
33 Dearborn 307,971 285,372 286,895 92.7% 93.2%
33 Monroe 848,638 843,395 845,174 99.4% 99.6%
208 S. LaSalle 864,518 836,712 817,760 96.8% 94.6%
National City Center 766,965 754,447 754,449 98.4% 98.4%
2000 York 200,078 199,794 199,794 99.9% 99.9%
2100 Swift 58,000 58,000 58,000 100.0% 100.0%
4100 Madison 24,566 12,995 10,110 52.9% 41.2%
6400 Shafer 165,832 162,992 164,072 98.3% 98.9%
Atrium 65,273 64,472 65,273 98.8% 100.0%
Citibank 105,602 105,602 105,602 100.0% 100.0%
Commerce Point 236,642 229,723 222,177 97.1% 93.9%
Continental Towers 923,483 892,823 852,652 96.7% 92.3%
Enterprise Office 129,574 128,028 128,309 98.8% 99.0%
Narco River 65,407 58,785 56,666 89.9% 86.6%
Narco Tower 50,400 50,400 50,400 100.0% 100.0%
Olympian 172,625 170,553 110,864 98.8% 64.2%
Salt Creek 100,984 89,334 90,963 88.5% 90.1%
Sun Annex 25,199 24,096 25,199 95.6% 100.0%
Two Century Center 219,370 219,370 217,960 100.0% 99.4%
Professional Plaza 93,711 80,730 77,098 86.1% 82.3%
Wauwatosa 101,189 81,619 95,376 80.7% 94.3%
-----------------------------------------------------------
Office Properties Totals 5,526,027 5,349,242 5,234,793 96.8% 94.7%
# of Office Properties: 21
-----------------------------------------------------------
TOTALS 9,246,520 8,594,709 8,404,759 93.0% 90.9%
===========================================================
Total # of Properties: 50
</TABLE>
Supplemental Financial and Operating Statistics
Prime Group Realty Trust
14 (NYSE: PGE) 2Q 2000
<PAGE>
Development and Recently Completed Development Projects
June 30, 2000
<TABLE>
<CAPTION>
Total Project Net Rentable
Development Projects: Location Cost (millions) Square Feet Status
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CBD Office
Dearborn Center Chicago, IL $ 350,000,000 1,500,000 Leased 617,967 SF to
Bank One Corporation
Leased 69,366 SF to
Holland & Knight
Suburban Office
Pine Meadows Building E Libertyville, IL $ 13,300,000 90,840 Under Construction
950 Technology Way
Industrial
320 Fullerton Avenue Carol Stream, IL $ 12,600,000 263,208 100% leased to Beltmann
North American Van
Lines and Benjamin
Moore, completing
Benjamin Moore tenant
improvements
1455 Sequoia Drive Aurora, IL $ 9,000,000 257,600 62% leased to Amurol
(division of Wrigley)
Recently Completed Projects: (last 12 months)
---------------------------------------------
CBD Office
180 North LaSalle Street Chicago, IL $ 21,500,000 770,191 Redeveloped from Class
B to Class A 85.03%
leased
Suburban Office
Pine Meadows Building Libertyville, IL $ 26,850,000 203,611 96.79% leased
850, 860, 870, 1000
Technology Way
Industrial
2000 USG Drive Libertyville, IL $ 9,000,000 242,200 100% leased to Abbott
Laboratory, lease
commenced on 7/15/00
</TABLE>
Supplemental Financial and Operating Statistics
Prime Group Realty Trust
15 (NYSE: PGE) 2Q 2000
<PAGE>
Debt Activity
June 30, 2000
Indebtedness Retirement
Three months ended June 30, 2000
<TABLE>
<CAPTION>
Amount Interest Loan Loan
Property Retired Type Rate Term (yrs) Date Maturity
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Pine Meadows Three Story $ 7,062,000 Variable Rate 9.09% 1.5 4/21/00 2/1/01
</TABLE>
New Indebtedness:
-----------------
<TABLE>
<CAPTION>
Original
Amount/ Interest Loan Loan
Property Commitment Classification Type Rate Term (yrs) Date Maturity
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
National City Center, Jorie $20,000,000 Mezzanine Variable Rate 12.63% 3.0 6/30/00 6/30/02
Plaza, 208 South LaSalle Street Facility
Salt Creek and Sun Annex $ 7,410,000 Term Loan Variable Rate 8.95% 1.0 6/30/00 6/30/03
1455 Sequoia Drive (Amurol) $ 6,000,000 Construction Variable Rate 8.88% 2.0 6/13/00 6/13/02
Enterprise Office $ 7,645,152 Term Loan Variable Rate 8.93% 1.0 5/17/00 5/17/01
7100 South Madison $ 3,908,000 Term Loan Fixed Rate 8.44% 10.0 4/27/00 4/27/10
Pine Meadows Three Story $11,500,000 Term Loan Variable Rate 8.88% 1.0 4/21/00 4/21/01
555 Kirk Road and 1541 Abbott Drive $ 2,350,000 Term Loan Variable Rate 8.88% 1.0 4/18/00 4/18/01
</TABLE>
<TABLE>
<CAPTION>
Property Institution
------------------------------------------------------------------------
<S> <C>
Pine Meadows Three Story Corus Bank
</TABLE>
New Indebtedness:
-----------------
<TABLE>
<CAPTION>
Property Institution
------------------------------------------------------------------------
<S> <C>
National City Center, Jorie Fleet Boston National Bank
Plaza, 208 South LaSalle Street
Salt Creek and Sun Annex LaSalle National Bank
1455 Sequoia Drive (Amurol) LaSalle National Bank
Enterprise Office LaSalle National Bank
7100 South Madison Greenwich Capital
Pine Meadows Three Story LaSalle National Bank
555 Kirk Road and 1541 Abbott Drive LaSalle National Bank
</TABLE>
Supplemental Financial and Operating Statistics
Prime Group Realty Trust
16 (NYSE: PGE) 2Q 2000
<PAGE>
Capital Events
Second Quarter ending June 30, 2000
<TABLE>
<CAPTION>
Net Acquisition
Rentable Cost/Sales Mortgage
Square Price (In Debt (In Annualized Capitalization
Property Location Feet Millions) Millions) NOI Rate
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Acquisitions
Office:
7100 Madison Willowbrook, IL 51,160 $ 5,350,000 $ 3,908,000 577,593 11%
Industrial:
555 Kirk Road/ St. Charles, IL/ 106,330 $ 4,000,000 $ 2,350,000 411,477 10%
1543 Abbott Drive Wheeling, IL
Dispositions
Office:
Center Square II Knoxville, TN 91,426 $ 6,075,000 $ 9,000,000
Nashville-Suntrust Nashville, TN 250,566 5,442,500 4,800,000
Triad Parking Knoxville, TN N/A 8,505,000 -
Old Kingston-Weston Knoxville, TN 34,638 2,227,500 3,500,000
--------------------------------------
Total 376,630 $20,250,000 $17,300,000
Industrial:
5160 Blazer Memorial Dublin, OH 85,962 $ 2,345,000 *
Parkway
2160 McGaw Road Obetz, OH 310,100 5,862,500 *
2400 McGaw Road Obetz, OH 86,400 1,842,500 *
4849 Groveport Road Obetz, OH 132,100 3,182,500 *
4411 Marketing Road Columbus, OH 65,804 2,345,000 *
600 London Delaware, OH 52,441 1,172,500 *
--------------------------------------
732,807 $16,750,000 $ 7,578,786
475 Superior Avenue Munster, IN 9.56 acres $ 765,000 -
</TABLE>
<TABLE>
<CAPTION>
Month
Acquired/ Original
Property Sold Lender Debt Loan Amount
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Acquisitions
Office:
7100 Madison 4/25/00 Greenwich Capital 4/27/00 $ 3,906,198
Industrial:
555 Kirk Road/ 4/17/00 LaSalle Bank 4/18/00 $ 2,342,166
1543 Abbott Drive
Dispositions
Office:
Center Square II 4/24/00
Nashville-Suntrust 4/24/00
Triad Parking 4/24/00
Old Kingston-Weston 4/24/00
Total
Industrial:
5160 Blazer Memorial 6/27/00
Parkway
2160 McGaw Road 6/27/00
2400 McGaw Road 6/27/00
4849 Groveport Road 6/27/00
4411 Marketing Road 6/27/00
600 London 6/27/00
475 Superior Avenue 6/30/00
</TABLE>
*Debt included in $7,578,786
Supplemental and Financial Operating Statistics
Prime Group Realty Trust
17 (NYSE: PGE) 2Q 2000
<PAGE>
Market Capitalization
June 30, 2000
<TABLE>
<CAPTION>
Common Equity
-------------
<S> <C> <C>
Common Shares Outstanding 15,302,223
Operating Partnership Units 11,083,821
--------------------------- -------------
Total Shares & Units 26,386,044
X
PGE Share Price (1) $ 15.20
------------------- -------------
Common Equity Market Cap $ 401,149,666
Cumulative
Preferred Stock Coupon
--------------- ----------
Series A Convertible Preferred $ 40,000,000 7.50%
Series B Cumulative Redeemable Preferred $ 100,000,000 9.00%
-------------
Total Preferred $ 140,000,000
-------------
Total Equity Market Capitalization $ 541,149,666
=============
Weighted Average Preferred Coupon 8.57%
====
Weighted
Principal Average
Indebtedness Outstanding Interest Rate
------------ ------------- -------------
Secured Short Term Credit Facility $ 10,811,500 8.58%
Unsecured Borrowings - N/A
Secured Debt 838,984,500 8.07%
-------------
Total Debt $ 849,796,000 8.08%
=============
Weighted average interest rate including
effects of interest rate swap
Variable/Fixed Rate Breakdown
Fixed Rate Debt $ 360,023,000 42.37%
Variable Rate Debt 489,773,000 57.63%
-------------
$ 849,796,000
=============
</TABLE>
(1) Price as of 6/30/00
Supplemental Financial and Operating Statistics
Prime Group Realty Trust
18 (NYSE: PGE) 2Q 2000
<PAGE>
Indebtedness Schedule
June 30, 2000
<TABLE>
<CAPTION>
Interest Loan Maturity
Lender Portfolio or Property Rate Term (yrs) Date 06/30/00 06/30/99
------ --------------------- ---- --------- ---- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Fixed Rate Debt:
Deutsche Banc BT Alex. Brown 33 West Monroe Street 15.00% 0.5 9/29/00 $ 12,500,000 -
New York Life National City Center (1900 East
9th Street) 6.75% 2.0 4/10/01 60,134,217 $ 62,619,771
CIGNA Continental Towers (1701 Golf Road) 7.22% 7.0 5/15/05 72,595,764 73,794,819
Capital Company of America Commerce Point (3800 North Wilke Road) 7.07% 10.0 3/11/08 19,412,834 19,684,734
CIBC Oppenheimer Nardi Industrial 7.17% 10.0 5/1/08 46,118,856 46,556,413
Capital Company of America Citibank Building (1699 East Woodfield
Road) 7.18% 10.0 5/11/08 8,547,284 8,660,517
Capital Company of America 2100 Swift Drive 7.19% 10.0 5/11/08 5,067,098 5,133,833
Capital Company of America 6400 Shafer Court 7.09% 10.0 6/11/08 13,979,768 14,170,157
Capital Company of America Two Century Center (1700 East Golf Road) 7.37% 10.0 11/11/08 20,095,824 20,352,643
Capital Company of America Oakbrook Business Center (2000 York Road) 7.37% 10.0 11/11/08 11,763,409 11,913,742
CIBC Oppenheimer Narco River Business Center (1600 167th
Street) 8.68% 10.0 12/1/09 2,785,970 -
Deutsche Banc BT Alex. Brown IBM Plaza (330 North Wabash Avenue) 11.75% 2.0 2/23/02 30,000,000 -
Deutsche Banc Mortgage Capital Brush Hill Office Courte (740 Pasquilleni
Drive) 8.76% 10.0 1/1/10 8,180,143 -
Greenwich Capital 7100 South Madison 8.44% 10.0 4/27/10 3,903,468 -
Capital Company of America 208 South LaSalle Street 7.79% 15.0 4/11/13 44,938,360 45,349,927
State Farm 1001 Technology Way - 6,267,789
State Farm Hadesman Industrial - 28,889,402
---------------------------
Total Fixed Rate Debt 360,022,995 343,393,747
---------------------------
Hedged Variable Rate Debt:
Deutsche Banc BT Alex. Brown 33 West Monroe Street 8.80% 3.0 1/31/02 65,000,000 65,000,000
Westdeutsche ImmobilienBank IBM Plaza (330 North Wabash Avenue) 8.00% 3.0 12/31/02 158,000,000 -
---------------------------
Total Hedged Variable Rate Debt 223,000,000 65,000,000
---------------------------
Variable Rate Debt:
LaSalle Bank Credit Facility GE Distribution Center (475 Superior
Avenue) 8.58% 2.0 8/31/00 10,811,500 15,000,000
LaSalle Bank Dearborn Center Land (Dearborn,
Adams, State) 8.84% 2.0 9/1/00 13,500,000 13,500,000
Corus Bank Monroe/Wacker Land 10.00% 0.8 5/1/01 24,000,000 -
Corus Bank Enterprise Office II (2305 Enterprise
Drive) 9.39% 1.0 2/1/01 5,450,000 -
Lehman Brothers 33 North Dearborn Street 8.28% 2.0 1/31/01 18,000,000 18,000,000
Corus Bank Pine Meadows Single-Story 8.54% 1.5 2/1/01 7,875,423 -
Corus Bank 2000 USG Drive 8.54% 1.5 2/1/01 4,878,334 -
Corus Bank 320 Fullerton Avenue (Kimberly) 8.54% 1.5 5/1/01 6,842,934 -
Corus Bank Monroe/Wacker Land 10.00% 2.3 11/1/01 4,000,000 -
LaSalle Bank 1455 Sequoia Drive (Amurol) 8.88% 2.0 6/13/02 1,958,997 -
Capital Company of America 180 North LaSalle Street 8.98% 3.0 7/11/00 20,000,000 20,000,000
Bank United Jorie Plaza (800 Jorie Boulevard) 8.63% 3.0 8/31/02 20,742,064 -
Corus Bank 43-47 Hintz Road 8.54% 3.0 9/30/02 5,820,000 -
GE Capital Corporation 122 South Michigan Avenue 9.63% 5.0 5/21/04 14,000,000 14,000,000
LaSalle Bank 6700 Touhy 8.88% 1.0 3/28/01 2,938,320 -
LaSalle Bank 555 Kirk Road and 1543 Abbott Drive 8.34% 1.0 4/18/01 2,334,333 -
LaSalle Bank Pine Meadows Three Story 8.88% 1.0 4/21/01 11,423,332 -
LaSalle Bank Enterprise Office I 8.88% 1.0 5/17/01 7,637,152 -
LaSalle Bank Salt Creek and Sun Annex 9.00% 1.0 6/30/01 7,410,000 -
Fleet National Bank National City Center (1900 East
9th Street) 12.63% 3.0 6/30/03 20,000,000 -
TN Industrial Development
Revenue Bonds Tennessee Portfolio 6.25% 17.0 12/1/14 9,000,000 26,300,000
Chicago Industrial Development
Revenue Bonds Enterprise VII - Enterprise X 5.60% 25.0 6/1/22 23,250,000 23,250,000
IN Industrial Development Revenue
Bonds Enterprise I - Enterprise VI 5.60% 25.0 6/1/22 24,900,000 24,900,000
Lehman Brothers 77 West Wacker Drive - 170,000,000
Bank Boston Credit Facility Various - 5,636,768
CIBC Oppenheimer National City Center - 10,000,000
CIBC Oppenheimer Nardi Industrial - 14,600,000
Friedman Billings Ramsey 901 Technology Way - 7,000,000
---------------------------
Total Variable Rate Debt 266,772,389 362,186,768
---------------------------
Total Debt $849,795,384 $770,580,515
===========================
</TABLE>
Supplemental Financial and Operating Statistics
Prime Group Realty Trust
(NYSE: PGE)
19 2Q 2000
<PAGE>
Indebtedness Allocation as of June 30, 2000
[GRAPH APPEARS HERE]
Non-Hedged Variable Rate 22.4%
Low Floater IDRBs 6.1%
Hedged Variable Rate 31.6%
Fixed Rate 38.5%
[GRAPH APPEARS HERE]
Fixed Rate $360,022,995
Hedged Variable Rate $223,000,000
Low Floater IDRBs $ 57,150,000
Non-Hedged Variable Rate $209,622,389
Supplemental Financial and Operating Statistics
Prime Group Realty Trust
20 (NYSE: PGE) 2Q 2000
<PAGE>
Variable Interest Rate Hedge Agreements
June 30, 2000
<TABLE>
<CAPTION>
Type of Notional Floating Financial Trade Effective
Counterparty Hedge Strike Amount Index Institution Date Date
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
33 West Monroe LLC Collar 7.5%-3.73% $ 65,000,000 1 Mo. LIBOR CIBC 01/28/99 01/31/99
330 North Wabash Avenue Swap 6.300% $ 160,000,000 1 Mo. LIBOR Morgan 12/09/99 12/10/99
Prime Group Realty LP Cap 8.000% $ 70,000,000 1 Mo. LIBOR SBCM 03/20/00 03/20/00
<CAPTION>
Value Maturity Total Years Years Intrinsic Time Value
Counterparty Date Date Years Elapsed Remain Value Value 06/30/00
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
33 West Monroe LLC 06/30/00 01/31/02 3.0 1.4 1.6 $ - $ 93,000 $ 93,000
330 North Wabash Avenue 06/30/00 12/10/02 3.0 0.6 2.4 $ 2,401,000 $ - $ 2,401,000
Prime Group Realty LP 06/30/00 11/17/00 0.7 0.3 0.4 $ - $ - $ -
</TABLE>
Supplemental Financial and Operating Statistics
Prime Group Realty Trust
21 (NYSE: PGE) 2Q 2000
<PAGE>
Indebtedness Maturities Split between Scheduled Amortization and Scheduled
Maturities
June 30, 2000
<TABLE>
<CAPTION>
Cumulative
Scheduled Total Percentage Percentage
Amortization Scheduled Scheduled of Debt of Debt
Year Payments Maturities Maturities Maturing Maturing
------------ ------------ ------------ ------------ ---------- ----------
<S> <C> <C> <C> <C> <C>
7/1/00-12/31/00 $ 5,224,834 $ 36,811,500 $ 42,036,334 4.9% 4.9%
2001 8,280,612 180,890,452 189,171,064 22.3% 27.2%
2002 4,271,026 323,104,651 327,375,677 38.5% 65.7%
2003 4,180,209 20,000,000 24,180,209 2.8% 68.6%
2004 4,462,418 14,000,000 18,462,418 2.2% 70.7%
2005+ 26,706,236 221,863,453 248,569,689 29.3% 100.0%
-------------------------------------------------------------------------
TOTAL $53,125,335 $796,670,056 $849,795,390 100.0% 100.0%
</TABLE>
Percentage of Debt Maturing
[GRAPH APPEARS HERE]
Cumulative Percentage of Debt Maturing
[GRAPH APPEARS HERE]
Supplemental Financial and Operating Statistics
Prime Group Realty Trust
(NYSE: PGE)
22 2Q 2000
<PAGE>
Total Office and Industrial Properties and Square Feet Owned and Under Contract
June 30, 2000
<TABLE>
<CAPTION>
-----------------------
TOTAL PROPERTIES OWNED:
-----------------------
<S> <C>
Office Properties Amount
Owned 29
---------
Total Office Owned 29
---------
Industrial Properties
Owned 36
Under Construction
1455 Sequoia, Aurora, IL (Amurol) 1
----------
Total Industrial Owned 37
----------
Total Office and Industrial Owned 66
----------
------------------------
TOTAL SQUARE FEET OWNED:
------------------------
Office Square Feet
Total CBD Office Owned 6,167,030
Total Suburban Office Owned 3,355,103
-----------
Total Office Owned 9,522,133
===========
Industrial
Total Warehouse/Distribution Industrial Owned 2,724,467
Under Construction:
1455 Sequoia, Aurora, IL (Amurol) 161,000
-----------
Total Warehouse/Distribution Industrial Owned -
Total Crane Industrial Owned 2,158,284
-----------
Total Industrial Owned 5,043,751
===========
Total Office and Industrial Owned 14,565,884
===========
</TABLE>
Supplemental Financial and Operating Statistics
Prime Group Realty Trust
(NYSE: PGE)
23 2Q 2000
<PAGE>
Property Summary
June 30, 2000
<TABLE>
<CAPTION>
Gross Leasable Area Annualized Base Rent
------------------------ --------------------------
Square Annual Base
Rentable Year Built/ Footage % Leased as Annualized Rent per
City Square Feet Renovated Leased of 6/30/00 Base Rent Square Foot
---- ----------- --------- ------ ---------- --------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
CBD Office Properties
---------------------
122 South Michigan Avenue Chicago, IL 350,659 1910 303,433 86.5% $ 5,467,358.76 $18.02
180 North LaSalle Street Chicago, IL 769,384 1999 645,371 83.9% $ 8,140,312.68 $12.61
208 South LaSalle Street Chicago, IL 835,229 1914/1956/ 844,140 101.1% $ 12,278,453.52 $14.55
1982/1991
33 North Dearborn Street Chicago, IL 302,818 1967/1986 285,372 94.2% $ 5,241,351.96 $18.37
33 West Monroe Street Chicago, IL 846,759 1980 843,395 99.6% $ 13,630,924.20 $16.16
77 West Wacker Drive Chicago, IL 944,556 1992 942,434 99.8% $ 24,651,750.36 $26.16
IBM Plaza Chicago, IL 1,350,660 1971 1,300,342 96.3% $ 17,238,529.92 $13.26
National City Center Cleveland, OH 766,965 1980 793,917 103.5% $ 10,801,819.68 $13.61
Suburban Office Properties
--------------------------
2000 York Road Oak Brook, IL 200,045 1960/1986 204,246 102.1% $ 2,138,384.28 $10.47
2100 Swift Oak Brook, IL 58,000 1985/1991 58,000 100.0% $ 832,299.96 $14.35
4100 Madison Hillside, IL 24,551 1978 12,995 52.9% $ 91,303.44 $ 7.03
6400 Shafer Court Rosemont, IL 164,958 1980/1990 162,992 98.8% $ 2,174,400.24 $13.34
7100 Madison Avenue Willowbrook, IL 50,157 50,157 100.0% $ 514,848.00 $10.26
Atrium Building Naperville, IL 65,273 1979 64,472 98.8% $ 1,048,269.96 $16.26
Brush Hill Office Court Westmont, IL 109,865 1986 110,065 100.2% $ 1,226,474.26 $11.14
Centre Square I Knoxville, TN 93,711 1988 80,730 86.1% $ 1,273,712.88 $15.78
Citibank Building Schaumburg, IL 105,602 1979 105,602 100.0% $ 1,998,179.40 $18.92
Commerce Point Combined Arlington Hts, IL 236,642 1987/1989 244,249 103.2% $ 3,220,963.08 $13.19
Continental Towers Rolling Meadows, IL 928,766 1977/1979/1981 892,823 96.1% $ 10,439,806.68 $11.69
Enterprise Center Westchester, IL 129,574 1987 128,028 98.8% $ 1,555,291.92 $12.15
Enterprise Center II Westchester, IL 62,580 62,580 100.0% $ 841,474.56 $13.45
Jorie Plaza Oak Brook, IL 190,829 1961/1992 170,025 89.1% $ 2,828,692.80 $16.64
Narco River Business Center Calumet City, IL 65,394 1981 66,735 102.0% $ 785,318.64 $11.77
Narco Tower Road Schaumburg, IL 50,400 1992 50,400 100.0% $ 563,100.00 $11.17
Olympian Office Center Lisle, IL 167,756 1989 179,829 107.2% $ 2,539,379.28 $14.12
Pine Meadows Single Story Libertyville, IL 100,616 1999 94,081 93.5% $ 1,109,489.28 $11.79
Pine Meadows Three Story Libertyville, IL 102,995 1999 102,995 100.0% $ 1,554,459.36 $15.09
Salt Creek/Sun Annex Schaumburg, IL 125,398 1979/1986 113,430 90.5% $ 1,216,750.20 $10.73
Two Century Centre Schaumburg, IL 217,960 1989 219,370 100.6% $ 2,310,941.16 $10.53
Wauwatosa Wauwatosa, WI 104,031 1979 81,619 78.5% $ 1,326,250.32 $16.25
---------
Total Office Owned: 9,522,133
</TABLE>
Supplemental Financial and Operating Statistics
Prime Group Realty Trust
(NYSE: PGE)
24 2Q 2000
<PAGE>
<TABLE>
<CAPTION>
Gross Leasable Area Annualized Base Rent
------------------------ --------------------------
Square Annual Base
Rentable Year Built/ Footage % Leased as Annualized Rent per
City Square Feet Renovated Leased of 6/30/00 Base Rent Square Foot
---- ----------- --------- ------ ---------- --------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Warehouse/Distribution Prop.
----------------------------
1401 South Jefferson Street Chicago, IL 17,265 1965/1985 17,265 100.0% $ 96,917.04 $ 5.61
1543 Abbott Drive Wheeling, IL 43,930 43,930 100.0% $ 953,562.24 $21.71
2000 USG Drive Libertyville, IL 242,200 242,200 100.0% $ 980,910.00 $ 4.05
320 Fullerton Avenue Carol Stream, IL 263,208 1999 146,825 55.8% $ 704,760.00 $ 4.80
350 Randy Road Carol Stream, IL 25,200 1974 18,900 75.0% $ 104,552.28 $ 5.53
43-47 Hintz Road Wheeling, IL 310,156 1961/1990 310,156 100.0% $ 976,991.40 $ 3.15
475 Superior Munster, IN 450,000 1989 450,000 100.0% $1,395,000.00 $ 3.10
550 Kehoe Boulevard Carol Stream, IL 44,575 1997 44,575 100.0% $ 312,649.44 $ 7.01
555 Kirk Road St. Charles, IL 62,400 93,646 150.1% $ 331,193.04 $ 3.54
6700 Touhy Avenue Niles, IL 120,000 120,000 100.0% $ 506,371.92 $ 4.22
Arlington Heights Combined Arlington Hts, IL 304,506 1978 304,506 100.0% $1,015,306.32 $ 3.33
Madison Group Batavia, IL 120,004 1990 0 0.0% $ 0.00 $ 0.00
Madison Group 200 Carol Stream, IL 66,254 1968/1995 66,254 100.0% $ 289,590.12 $ 4.37
Madison Group 90 Hillside, IL 90,344 1977/1992 90,344 100.0% $ 358,788.96 $ 3.97
Narco 4300 Associates Hillside, IL 127,129 1980 127,129 100.0% $ 593,452.80 $ 4.67
Narco Elmhurst - 343 Carol Lane Elmhurst, IL 30,084 1989 30,084 100.0% $ 197,351.04 $ 6.56
Narco Elmhurst - 370 Carol Lane Elmhurst, IL 60,290 1977/1994 60,290 100.0% $ 271,673.16 $ 4.51
Narco Elmhurst - 388 Carol Lane Elmhurst, IL 40,920 1979 40,920 100.0% $ 216,227.40 $ 5.28
Narco Elmhurst-342-46 Carol Lane Elmhurst, IL 67,935 1989 67,935 100.0% $ 334,530.00 $ 4.92
Narco Hillside-4160-70 Madison Hillside, IL 79,532 1974/1994 79,532 100.0% $ 414,643.20 $ 5.21
Tri-State Industrial-11039 Gage Franklin Park, IL 21,935 1965/1993 21,935 100.0% $ 109,680.00 $ 5.00
Tri-State Industrial-11045 Gage Franklin Park, IL 136,600 1970/1992 136,600 100.0% $ 571,349.88 $ 4.18
Crane Properties
----------------
Enterprise Center VII Chicago, IL 459,684 1916/1991-96 355,173 77.3% $ 878,597.28 $ 2.47
Enterprise Center VIII Chicago, IL 242,199 1916/1991-96 116,261 48.0% $ 287,164.68 $ 2.47
Enterprise Center X Chicago, IL 172,945 1916/1991-96 169,829 98.2% $ 391,691.52 $ 2.31
Enterprise Center IX Chicago, IL 156,996 1916/1991-96 156,996 100.0% $ 516,088.20 $ 3.29
Enterprise Center II East Chicago, IN 169,435 1917/1991-97 77,309 45.6% $ 254,934.00 $ 3.30
Enterprise Center III East Chicago, IN 291,550 1917/1991-97 291,550 100.0% $1,347,876.60 $ 4.62
Enterprise Center IV East Chicago, IN 87,843 1917/1991-97 85,800 97.7% $ 0.00 $ 0.00
East Chicago Enterprise Center East Chicago, IN 54,070 1917/1991-97 40,000 74.0% $ 259,999.92 $ 6.50
Enterprise Center V Hammond, IN 196,475 1920-1952 194,755 99.1% $ 478,589.28 $ 2.46
Enterprise Center VI Hammond, IN 250,266 1920-1952 248,255 99.2% $ 729,412.56 $ 2.94
Hammond Enterprise Center Hammond, IN 76,821 1920-1952 72,746 94.7% $ 235,504.32 $ 3.24
----------
Total Industrial Owned 4,882,751
----------
Total RSF 14,404,884
==========
</TABLE>
Supplemental Financial and Operating Statistics
Prime Group Realty Trust
(NYSE: PGE)
25 2Q 2000
<PAGE>
Top Ten Office Tenants-Annualized Base Rent*
June 30, 2000
<TABLE>
<CAPTION>
2000
Total Square Annualized % of Total
Tenant Building Footage Occupied Base Rent** Portfolio
------ -------- ---------------- ----------- ---------
<S> <C> <C> <C> <C>
Arthur Andersen 33 W. Monroe/IBM 663,873 $ 9,543,763 6.43%
R.R. Donnelley & Sons Co. 77 W. Wacker 241,569 $ 7,872,734 5.30%
National City Bank National City Center 520,425 $ 7,247,362 4.88%
First Union Securities, Inc. 77 W. Wacker 241,225 $ 6,452,769 4.35%
Jenner & Block IBM Plaza 338,032 $ 5,900,502 3.97%
Jones Day Reavis & Pogue 77 W. Wacker 116,697 $ 3,922,007 2.64%
IBM IBM/Continental Towers 362,307 $ 3,609,625 2.43%
Motorola Continental Towers/Pine Meadows/ 314,243 $ 3,476,361 2.34%
Two Century Center
Ernst & Young National City Center/IBM 184,156 $ 3,267,049 2.20%
ABN AMRO Capital Markets 208 S. LaSalle 267,225 $ 2,597,960 1.75%
------------------------------------------------
3,249,752 $53,890,132 36.30%
================================================
</TABLE>
* Tenants that pay the largest percentage of annualized base rent (excludes 180
North LaSalle)
** Rent amounts as of 7/1/00
Supplemental Financial and Operating Statistics
Prime Group Realty Trust
26 (NYSE: PGE) 2Q 2000
<PAGE>
Top Ten Office Tenants-by Square Footage*
June 30, 2000
<TABLE>
<CAPTION>
Total Square % of Total Annualized Annualized
Tenant Building Footage Occupied Portfolio Base Rent** Base Rent PSF
------ -------- ---------------- --------- ----------- -------------
<S> <C> <C> <C> <C> <C>
Arthur Andersen 33 West Monroe 663,873 4.51% $ 9,543,763 $14.38
National City Bank National City Center 520,425 3.53% $ 7,247,362 $13.93
IBM IBM/Continental Towers 362,307 2.46% $ 3,609,625 $ 9.96
Jenner & Block IBM Plaza 338,032 2.30% $ 5,900,502 $17.46
Motorola Continental Towers/Pine Meadows/ 314,243 2.13% $ 3,476,361 $11.06
Two Century Center
ABN AMRO Capital Markets 208 South LaSalle 267,225 1.82% $ 2,597,960 $ 9.72
R.R. Donnelley & Sons Company 77 West Wacker 241,569 1.64% $ 7,872,734 $32.59
First Union Securities, Inc. 77 West Wacker 241,225 1.64% $ 6,452,769 $26.75
Ernst & Young, LLP National City Center/IBM 184,156 1.25% $ 3,267,049 $17.74
Baker & Hostetler National City Center 145,704 .99% $ 2,138,949 $14.68
---------------------------------------------------------
3,278,759 22.27% $52,107,074 $15.89
=========================================================
</TABLE>
* Tenants who occupy the largest percentage of square footage in the portfolio.
Excludes 180 North LaSalle
** Rent amounts are as of July 1, 2000
Supplemental Financial and Operating Statistics
Prime Group Realty Trust
27 (NYSE: PGE) 2Q 2000
<PAGE>
Top Ten Industrial Tenants-Annualized Base Rent
June 30, 2000
<TABLE>
<CAPTION>
2000
Total Square Annualized % of Total
Tenant Building Footage Occupied Base Rent* Portfolio
------ -------- ---------------- ---------- ---------
<S> <C> <C> <C> <C>
General Electric 475 Superior 450,000 $1,395,000 0.94%
Tenneco Packaging Specialists 43-47 Hintz Road 310,156 $ 976,991 0.66%
Great Lakes Metals Enterprise Center III 154,275 $ 798,777 0.54%
Dynamic Manufacturing 4160-4190 Madison 184,191 $ 794,985 0.54%
4300 Madison
4211 Madison
Beltman Group, Inc 320 Fullerton 146,825 $ 704,760 0.47%
A.M. Castle & Co. Enterprise Center V 252,595 $ 617,304 0.42%
Echlin, Inc. 11045 Gage 136,600 $ 571,350 0.38%
AG Industries, Inc. Enterprise Center III 137,275 $ 549,100 0.37%
Marketing Out-of-the-Box, Inc 6700 Touhy 98,120 $ 407,105 0.27%
Strand Tek Enterprise Center V 131,442 $ 362,546 0.24%
Enterprise Center VIII
---------------------------------------------------------------
2,001,479 $7,177,918 4.83%
===============================================================
</TABLE>
* Rent amounts as of 7/1/00
Supplemental Financial and Operating Statistics
Prime Group Realty Trust
28 (NYSE: PGE) 2Q 2000
<PAGE>
Top Ten Industrial Tenants-by Square Footage
June 30, 2000
<TABLE>
<CAPTION>
Total Square % of
Footage Total Annualized Annualized
Tenant Building Occupied Portfolio Base Rent* Base Rent PSF
------ -------- -------- --------- ---------- --------------
<S> <C> <C> <C> <C>
General Electric 475 Superior 450,000 3.06% $1,395,000 $ 3.10
Tenneco Packaging 43-47 Hintz Road 310,156 2.11% $ 976,991 $ 3.15
Specialists
AM Castle & Co. Enterprise Center V 252,595 1.72% $ 617,301 $ 2.44
Co-Steel Lasco Chicago Enterprise Center 201,605 1.37% $ 342,961 $ 1.70
Dynamic Manufacturing 4160-4190 Madison 184,191 1.25% $ 794,985 $ 4.32
Company 4300 Madison
4211 Madison
Beltman Group, Inc. 320 Fullerton 146,825 1.00% $ 704,760 $ 4.80
AG Industries, Inc. Enterprise Center III 137,275 0.93% $ 549,100 $ 4.00
Echlin, Inc. 11045 Gage 136,600 0.93% $ 571,350 $ 4.18
Strand Tek Enterprise Center V 131,442 0.89% $ 362,546 $ 2.76
Enterprise Center VIII
Williams Steel and Supply Enterprise Center VIII 116,261 0.79% $ 287,165 $ 2.47
------------------------------------------------------------
2,066,950 14.04% $6,602,159 $32.92
============================================================
</TABLE>
* Rent amounts are as of July 1, 2000
**Tenants who occupy the largest percentage of square footage in the portfolio
Supplemental Financial and Operating Statistics
Prime Group Realty Trust
(NYSE: PGE)
29 2Q 2000
<PAGE>
PGE Stock Performance Year-to-Date
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
1/3/00 1/10/00 1/17/00 1/24/00 1/31/00 2/7/00 2/14/00 2/21/00 2/28/00 3/6/00 3/13/00 3/20/00 3/27/00
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
15.13 14.00 13.88 14.13 13.94 13.25 11.75 13.88 13.56 13.69 13.75 14.13 14.56
4/3/00 4/10/00 4/17/00 4/24/00 5/1/00 5/8/00 5/15/00 5/22/00 5/29/00 6/5/00 6/12/00 6/19/00 6/26/00
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
14.56 14.38 14.50 14.56 15.00 15.13 15.31 14.88 15.25 15.19 15.13 15.38 5.38
</TABLE>
Supplemental Financial and Operating Statistics
Prime Group Realty Trust
30 (NYSE: PGE) 2Q 2000
<PAGE>
INVESTOR INFORMATION
Inquiries
Prime Group Realty Trust (NYSE: PGE) welcomes any questions or comments from
shareholders, analysts, investment managers, media or prospective investors.
Please address all inquiries to our Investor Relations Department:
------------------------------------------------------------------
Melissa J. Williams
Investor Relations Representative
Prime Group Realty Trust
77 West Wacker Drive
Suite 3900
Chicago, Illinois 60601
Phone: 312.917.1300
Facsimile: 312.917.1310
E-mail: [email protected]
Website: www.pgrt.com
Research Coverage:
Friedman, Billings, Ramsey & Co. Merrill Ross 703.469.1271
Legg Mason Wood Walker, Inc. Glenn D. Muller 410.454.5149
Prudential Securities Inc. Louis W. Taylor 212.778.4424
Sidoti & Company, LLC Barbara R. Huber 212.453.7020
Our Supplemental Financial Package is available via e-mail. If you would
like to receive this document electronically, please send your e-mail
address to: [email protected]
Supplemental Financial and Operating Statistics
Prime Group Realty Trust
(NYSE: PGE) 2Q 2000
