Parkway Properties Overview February 2014 Forward-Looking Statements Certain statements contained in this presentation, including those that express a belief, expectation or intention, as well as those that are not statements of historical fact, 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 capital resources, projected profitability and portfolio performance, estimates of market rental rates, projected capital improvements, expected sources of financing, expectations as to the timing of closing of acquisitions, dispositions, or other transactions, the expected operating performance of anticipated near-term acquisitions and descriptions relating to these expectations, including without limitation, the anticipated net operating income yield. We caution investors that any forward-looking statements presented in this presentation are based on management’s beliefs and assumptions made by, and information currently available to, management. When used, the words “anticipate,” “believe,” “expect,” “intend,” “may,” “might,” “plan,” “estimate,” “project,” “should,” “will,” “result” and similar expressions that do not relate solely to historical matters are intended to identify forward-looking statements. You can also identify forward-looking statements by discussions of strategy, plans or intentions. Forward-looking statements involve risks and uncertainties (some of which are beyond the Company’s control) 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; competition in the leasing market; the demand for and market acceptance of our properties for rental purposes; the amount and growth of our expenses; tenant financial difficulties and general economic conditions, including interest rates, as well as economic conditions in our geographic markets; defaults or non-renewal of leases; risks associated with joint venture partners; the risks associated with the ownership and development of real property, including risks related to natural disasters; risks associated with property acquisitions, including the recent acquisition of Thomas Properties Group, Inc.; the failure to acquire or sell properties as and when anticipated; termination or non-renewal of property management contracts; the bankruptcy 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; our failure to maintain our status as real estate investment trust, or REIT; 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 results could differ materially from those expressed in any forward-looking statement. While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. Any forward-looking statements speak 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. We disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. Accordingly, investors should use caution in relying on past forward-looking statements, which were based on results and trends at the time they were made, to anticipate future results or trends. 2 Disclaimer This presentation (the "Presentation") is provided for informational purposes and reference only. By acceptance hereof, you agree that (i) the information contained herein may not be used, reproduced or distributed to others, in whole or in part, for any other purpose without the prior written consent of Parkway Properties, Inc. (“Parkway”) and (ii) you will keep confidential all information contained herein not already in the public domain. No representation or warranty is given in respect of the information contained herein and Parkway is under no obligation to (and expressly disclaims any obligation to) update any of the information provided in this Presentation. Market and industry information throughout the Presentation have been provided by sources other than Parkway that are believed to be reliable. However, this information has not been independently verified and no assurances can be given by Parkway regarding the accuracy or completeness of this information. This Presentation does not constitute an offer to sell or a solicitation of an offer to buy any securities and may not be used or relied upon in evaluating the merit of investing in Parkway. Deerwood North 3 Parkway Strategic Objectives Since the new management team was put in place in the fourth quarter of 2011, Parkway has executed on its strategic plan Strategic Objective Tactics Create long-term value for shareholders as the leading • New asset level ownership plans given new investment strategy owner of high-quality assets in higher growth submarkets • Customized leasing strategies by submarket in the Sunbelt • More judicious prioritization of capital expenditures • Focus on high-quality, differentiated assets Realize leasing and operational efficiencies and gain local • Achieve critical mass in target submarkets advantage • Maintain highly experienced local leadership Increase cash flow and unlock embedded value within • Efficiently exit non-core markets existing portfolio • Reinvest funds over time in quality assets in higher-growth submarkets • Pursue primarily wholly owned investments and select joint ventures when appropriate Maintain a conservative balance sheet with sufficient • Maintain between 5.5x to 6.5x net debt to EBITDA over long term flexibility for growth • Focus on debt composition and maintain quality unencumbered pool • Use credit facility as short-term financing source 4 Track Record of Solid Achievements Management • Management team with proven value creation expertise and strong regional management platform Team / TPG Sponsorship • TPG, a leading global private investment firm, holds an approximately 22.5% ownership interest in PKY • Portfolio repositioning substantially completed and acquisition pipeline remains healthy Strategy & • Exited majority of non-core assets and completed sale of Fund I portfolio Portfolio Transformation • Purchased or under contract to purchase $3.0 billion of high quality assets since January 2012 • Strategic acquisition of TPGI: ability to execute complex transaction with significant strategic benefits • Substantial operational improvement throughout 2012 and 2013 – Occupancy increased 540 basis points to 89.3%1 from January 1, 2012 to January 1, 2014 Enhanced – Weighted average gross rents per NRSF increased 23% from $22.25 (January 1, 2012) to $27.65 Operational (January 1, 2014) Results – FAD / FFO ratio significantly improved – Strong leasing activity, with 2.4 million sq. ft. of leases signed during 2013, representing 17% of the average portfolio size during the year • Parkway has maintained a strong and conservative balance sheet as it has continued to grow • Improved liquidity and access to capital - Parkway has raised $1.0 billion of capital: Fortified Balance – Raised $776 million in private and public equity in 2012, 2013, and 2014 Sheet and Improved Cash – Closed $125 million and $120 million unsecured term loans Flow • Amended its credit facility to extend term, increase the size of the accordion and lower fees • Reduced overall cost of capital by redeeming 8.0% preferred equity • Improved operating cash flow performance, which resulted in a 150% increase in dividend 5 1. Excludes recently acquired 7000 Central Park in Atlanta, Georgia and the Houston and Austin assets acquired in the merger with Thomas Properties Group, Inc. Management Team / TPG Sponsorship Parkway has an experienced management team and access to additional capital / expertise through its relationship with TPG • TPG sponsorship provides access to extensive relationships, deep analytical real estate expertise and other sources of capital • Relationship with TPG also enhances platform to source attractive investments in core markets Executive Management Team Regional Management Team Industry Experience Industry / Market Executive Position Market Leader Market (Yrs.) Experience (Yrs.) President, CEO & James R. Heistand 30 Shipley Hall Orlando 11/11 Director David R. O’Reilly EVP, CFO & CIO 14 Mike Fransen Houston 7 / 7 M. Jayson Lipsey EVP & COO 11 John Barton Atlanta 18 / 6 EVP & General Bryan Howell Charlotte 24 / 16 Jeremy Dorsett 2 Counsel EVP – Third Party Matt Mooney Phoenix 8 / 8 Henry Pratt 33 Services Victor Hughes Jacksonville 15 / 7 Kyle Burd Tampa 26 / 26 6 Completed Acquisition of Thomas Properties Group, Inc. • Parkway Properties, Inc. (“PKY”) successfully completed its merger with Thomas Properties Group, Inc. (“TPGI”) • Announced