JACKSON, Miss., July 6, 2011 /PRNewswire/ — Parkway Properties, Inc. (NYSE: PKY) announced today the sale of Maitland 200 for a gross sale price of $23 million. Maitland 200 is a 204,000 square foot office property located in the Maitland submarket of Orlando and was partially-owned by Parkway through a joint venture. The property was 95.7% occupied as of July 1, 2011.

Steven G. Rogers, President and Chief Executive Officer at Parkway, stated “Our commitment to the Orlando market remains strong and the sale of Maitland 200 represents a continued execution on our strategy of selling non-core assets and recycling capital into newer, high-quality assets. I am particularly pleased that Parkway will continue to manage the property for the new third-party owner, which is a testament to the strength of our platform in the Orlando market.”

The Company estimates the gross sale price for Maitland 200 represents a capitalization rate of approximately 6.7%, which is based on projected in-place cash net operating income for the 12 month period following the closing date, including the impact of contractual rent abatements. The $16.9 million first mortgage that was secured by the property was repaid upon closing. Parkway owned a 20% interest in the property and received a priority distribution after the repayment of secured debt of approximately $2.8 million at closing, which was used to reduce amounts outstanding under the Company’s revolving credit facility.

Parkway Properties, Inc., a member of the S&P Small Cap 600 Index, is a self-administered real estate investment trust specializing in the operation, leasing, acquisition, and ownership of office properties. The Company is geographically focused on the Southeastern and Southwestern United States and Chicago. Parkway owns or has an interest in 70 office properties located in 12 states with an aggregate of approximately 15.1 million square feet of leasable space as of July 6, 2011. Included in the portfolio are 26 properties totaling 6.6 million square feet that are owned jointly with other investors, representing 43.8% of the portfolio. Fee-based real estate services are offered through wholly-owned subsidiaries of the Company, which in total manage and/or lease approximately 13.0 million square feet for third-party owners at July 6, 2011.

Parkway Properties, Inc.’s press releases and additional information about the Company are available on the Company’s website at www.pky.com.

Forward Looking Statements

Certain statements in this release that are not in the present or past tense or discuss the Company’s expectations (including the use of the words anticipate, will, believe, forecast, intends, expects, estimates, projects, 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 belief as to the outcome and timing of future events. There can be no assurance that future developments affecting the Company will be those anticipated by the Company. 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 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; the risks associated with the ownership and development of real property; the failure to acquire or sell properties as and when anticipated; termination 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; 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 the forward-looking statements. The Company does not undertake to update forward-looking statements, except as may be required by law.

SOURCE Parkway Properties, Inc.