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☒
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the fiscal year ended
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December 31, 2019
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from
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to
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Corporate Office Properties Trust
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Maryland
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23-2947217
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(State or other jurisdiction of
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(IRS Employer
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incorporation or organization)
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Identification No.)
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Corporate Office Properties, L.P.
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Delaware
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23-2930022
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(State or other jurisdiction of
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(IRS Employer
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incorporation or organization)
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Identification No.)
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6711 Columbia Gateway Drive
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,
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Suite 300
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,
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Columbia
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,
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MD
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21046
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common Shares of beneficial interest, $0.01 par value
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OFC
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New York Stock Exchange
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Large accelerated filer
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☒
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Accelerated filer
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☐
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Non-accelerated filer
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☐
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Smaller reporting company
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☐
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Emerging growth company
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☐
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Large accelerated filer
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☐
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Accelerated filer
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☐
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Non-accelerated filer
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☒
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Smaller reporting company
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☐
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Emerging growth company
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☐
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•
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combined reports better reflect how management, investors and the analyst community view the business as a single operating unit;
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combined reports enhance investors’ understanding of the Company and the Operating Partnership by enabling them to view the business as a whole and in the same manner as management;
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combined reports are more efficient for the Company and the Operating Partnership and result in savings in time, effort and expense; and
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combined reports are more efficient for investors by reducing duplicative disclosure and providing a single document for their review.
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consolidated financial statements;
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the following notes to the consolidated financial statements:
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Note 3, Fair Value Measurements of COPT and subsidiaries and COPLP and subsidiaries;
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Note 9, Prepaid Expenses and Other Assets, Net of COPT and subsidiaries and COPLP and subsidiaries;
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Note 13, Equity of COPT and subsidiaries;
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Note 14, Equity of COPLP and subsidiaries;
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Note 18, Earnings per Share of COPT and subsidiaries and Earnings per Unit of COPLP and subsidiaries; and
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Note 20, Quarterly Data of COPT and subsidiaries and COPLP and subsidiaries.
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•
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“Item 7: Management’s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources of COPT”; and
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•
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“Item 7: Management’s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources of COPLP.”
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PAGE
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general economic and business conditions, which will, among other things, affect office property and data center demand and rents, tenant creditworthiness, interest rates, financing availability and property values;
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•
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adverse changes in the real estate markets, including, among other things, increased competition with other companies;
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governmental actions and initiatives, including risks associated with the impact of a prolonged government shutdown or budgetary reductions or impasses, such as a reduction in rental revenues, non-renewal of leases and/or reduced or delayed demand for additional space by our strategic customers;
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our ability to borrow on favorable terms;
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risks of real estate acquisition and development activities, including, among other things, risks that development projects may not be completed on schedule, that tenants may not take occupancy or pay rent or that development or operating costs may be greater than anticipated;
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risks of investing through joint venture structures, including risks that our joint venture partners may not fulfill their financial obligations as investors or may take actions that are inconsistent with our objectives;
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changes in our plans for properties or views of market economic conditions or failure to obtain development rights, either of which could result in recognition of significant impairment losses;
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our ability to satisfy and operate effectively under Federal income tax rules relating to real estate investment trusts and partnerships;
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possible adverse changes in tax laws;
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the dilutive effects of issuing additional common shares;
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our ability to achieve projected results;
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security breaches relating to cyber attacks, cyber intrusions or other factors; and
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environmental requirements.
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170 properties totaling 19.2 million square feet comprised of 15.4 million square feet in 148 office properties and 3.7 million square feet in 22 single-tenant data center shell properties (“data center shells”). We owned 15 of these data center shells through unconsolidated real estate joint ventures;
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a wholesale data center with a critical load of 19.25 megawatts;
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14 properties under development or redevelopment (ten office properties and four data center shells) that we estimate will total approximately 2.5 million square feet upon completion, including one partially-operational property; and
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approximately 900 acres of land controlled for future development that we believe could be developed into approximately 11.3 million square feet and 43 acres of other land.
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properties’ proximity to defense installations and other knowledge-based government demand drivers. Such proximity is generally preferred and often required for our tenants to execute their missions. Specifically, our:
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office properties are proximate to such mission-critical facilities as Fort George G. Meade (which houses over 100 Department of Defense organizations and agencies, including ones engaged in signals intelligence, such as U.S. Cyber Command and Defense Information Systems Agency) and Redstone Arsenal (one of the largest defense installations in the United States, housing priority missions, such as Army procurement, missile defense, space exploration, and research and development, testing and engineering of advanced weapons systems); and
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data center shells are primarily in the Northern Virginia area, proximate to the MAE-East Corridor, which is a major Network Access Point in the United States for interconnecting traffic between Internet service providers;
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well-established relationships with the USG and its contractors;
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extensive experience in developing:
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high quality, highly-efficient office properties;
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secured, specialized space, with the ability to satisfy the USG’s unique needs (including SCIF and ATFP requirements); and
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data center shells to customer specifications within very condensed timeframes to accommodate time-sensitive tenant demand; and
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depth of knowledge, specialized skills and credentialed personnel in operating highly-specialized properties with unique security-oriented requirements.
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maintaining an investment grade rating to enable us to use debt comprised of unsecured, primarily fixed-rate debt (including the effect of interest rate swaps) from public markets and banks;
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using secured nonrecourse debt from institutional lenders and banks;
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managing our debt by monitoring, among other things: (1) the relationship of certain measures of earnings to our debt level and to certain capital costs; (2) the timing of debt maturities to ensure that maturities in any one year do not exceed levels that we believe we can refinance; (3) our exposure to changes in interest rates; and (4) our total and secured debt levels relative to our overall capital structure;
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raising equity through issuances of common shares in COPT and common units in COPLP, joint venture structures for certain investments and, to a lesser extent, issuances of preferred shares in COPT and preferred units in COPLP;
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monitoring capacity available under revolving credit facilities and equity offering programs to provide liquidity to fund investment activities;
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paying dividends at a level that is at least sufficient for us to maintain our REIT status;
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recycling proceeds from sales of interests in properties to fund our investment activities and/or reduce overall debt; and
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continuously evaluating the ability of our capital resources to accommodate our plans for growth.
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Fort George G. Meade and the Baltimore/Washington Corridor (referred to herein as “Fort Meade/BW Corridor”);
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Northern Virginia Defense/IT Locations;
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Lackland Air Force Base in San Antonio, Texas;
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locations serving the U.S. Navy (referred to herein as “Navy Support Locations”). Properties in this sub-segment as of December 31, 2019 were proximate to the Washington Navy Yard in Washington, DC, the Naval Air Station Patuxent River in Maryland and the Naval Surface Warfare Center Dahlgren Division in Virginia;
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Redstone Arsenal in Huntsville, Alabama; and
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data center shells in Northern Virginia (including 15 owned through unconsolidated real estate joint ventures).
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downturns in national, regional and local economic environments, including increases in the unemployment rate and inflation or deflation;
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competition from other properties;
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trends in office real estate that may adversely affect future demand, including telecommuting and flexible workplaces;
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deteriorating local real estate market conditions, such as oversupply, reduction in demand and decreasing rental rates;
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declining real estate valuations;
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adverse developments concerning our tenants, which could affect our ability to collect rents and execute lease renewals;
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government actions and initiatives, including risks associated with the impact of prolonged government shutdowns and budgetary reductions or impasses, such as a reduction of rental revenues, non-renewal of leases and/or reduced or delayed demand for additional space by our strategic customers;
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increasing operating costs, including insurance, utilities, real estate taxes and other expenses, some of which we may not be able to pass through to tenants;
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increasing development costs for materials and labor;
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increasing vacancies and the need to periodically repair, renovate and re-lease space;
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increasing interest rates and unavailability of financing on acceptable terms or at all;
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unavailability of financing for potential purchasers of our properties;
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adverse changes in taxation or zoning laws;
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potential inability to secure adequate insurance;
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adverse consequences resulting from civil disturbances, natural disasters, terrorist acts or acts of war; and
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potential liability under environmental or other laws or regulations.
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liabilities for remediation of disclosed or undisclosed environmental contamination;
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claims by tenants, vendors or other persons dealing with the former owners of the properties;
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liabilities incurred in the ordinary course of business; and
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claims for indemnification by general partners, directors, officers and others indemnified by the former owners of the properties.
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we may not be able to refinance our existing indebtedness, or may refinance on terms that are less favorable to us than the terms of our existing indebtedness;
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•
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in the event of our default under the terms of our Revolving Credit Facility, COPLP could be restricted from making cash distributions to COPT, which could result in reduced distributions to our equityholders or the need for us to incur additional debt to fund these distributions; and
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if we are unable to pay our debt service on time or are unable to comply with restrictive financial covenants for certain of our debt, our lenders could foreclose on our properties securing such debt and, in some cases, other properties and assets that we own.
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continued property occupancy and timely receipt of rent from our tenants;
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the amount of future capital expenditures and expenses relating to our properties;
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our leasing activity and future rental rates;
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the strength of the commercial real estate market;
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our ability to compete;
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governmental actions and initiatives, including risks associated with the impact of a prolonged government shutdown or budgetary reductions or impasses;
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our costs of compliance with environmental and other laws;
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our corporate overhead levels;
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our amount of uninsured losses; and
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our decision to reinvest in operations rather than distribute available cash.
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•
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market perception of REITs in general and office REITs in particular;
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market perception regarding our major tenants and sector concentrations;
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•
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the level of institutional investor interest in COPT;
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•
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general economic and business conditions;
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•
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prevailing interest rates;
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our financial performance;
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our underlying asset value;
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market perception of our financial condition, performance, dividends and growth potential; and
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•
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adverse changes in tax laws.
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Segment
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Number of Properties
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Rentable Square Feet or Megawatts (“MW”)
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Occupancy (1)
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Annualized Rental Revenue (2)
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Annualized Rental Revenue per Occupied Square
Foot (2)(3)
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Office and Data Center Shell Portfolio
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Defense/IT Locations:
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Fort Meade/BW Corridor:
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National Business Park (Annapolis Junction, MD)
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31
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3,823
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90.1
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%
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$
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137,267
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$
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39.86
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Howard County, MD
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35
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2,849
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94.1
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%
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76,710
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28.61
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Other
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22
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1,624
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95.0
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%
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44,152
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28.45
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Fort Meade/BW Corridor Subtotal / Average
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88
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8,296
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92.4
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%
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258,129
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33.63
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Northern Virginia Defense/IT
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13
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1,993
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82.4
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%
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54,671
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33.31
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Lackland Air Force Base
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7
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953
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100.0
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%
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52,960
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53.15
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Navy Support Locations
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21
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1,242
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92.5
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%
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32,610
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28.37
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Redstone Arsenal
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10
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806
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99.3
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%
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17,404
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21.59
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Data Center Shells:
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Consolidated Properties
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7
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1,309
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100.0
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%
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19,290
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|
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14.73
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Unconsolidated Joint Venture Properties (4)
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15
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2,435
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100.0
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%
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7,718
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12.27
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Defense/IT Locations Subtotal / Average
|
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161
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|
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17,034
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93.7
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%
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442,782
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31.10
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Regional Office
|
|
7
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|
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1,982
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|
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88.1
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%
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57,997
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|
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33.23
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Other Properties
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2
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157
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73.0
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%
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2,807
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|
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24.46
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Total Office and Data Center Shell Portfolio
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170
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|
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19,173
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92.9
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%
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503,586
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$
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31.28
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Wholesale Data Center
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1
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|
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19.25 MW
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76.9
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%
|
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21,752
|
|
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N/A
|
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Total Operating Properties
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|
|
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$
|
525,338
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|
|
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Total Consolidated Operating Properties
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|
|
|
|
|
|
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$
|
517,620
|
|
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(2)
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Annualized rental revenue is the monthly contractual base rent as of December 31, 2019 (ignoring free rent then in effect) multiplied by 12, plus the estimated annualized expense reimbursements under existing leases. With regard to properties owned through unconsolidated real estate joint ventures, we include the portion of annualized rental revenue allocable to our ownership interest. We consider annualized rental revenue to be a useful measure for analyzing revenue sources because, since it is point-in-time based, it does not contain increases and decreases in revenue associated with periods in which lease terms were not in effect; historical revenue under generally accepted accounting principles does contain such fluctuations. We find the measure particularly useful for leasing, tenant and segment analysis.
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(3)
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Annualized rental revenue per occupied square foot is a property’s annualized rental revenue divided by that property’s occupied square feet as of December 31, 2019. Our computation of annualized rental revenue excludes the effect of lease incentives. The annualized rent per occupied square foot, including the effect of lease incentives, was $30.95 for our total office and data center shell portfolio, $33.30 for the Fort Meade/BW Corridor (our largest Defense/IT Location sub-segment) and $32.50 for our Regional Office portfolio.
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(4)
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Represents properties owned through unconsolidated real estate joint ventures. The amounts reported above reflect 100% of the properties’ square footage but only reflect the portion of Annualized Rental Revenue that was allocable to our ownership interest.
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Property and Location
|
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Estimated Rentable Square Feet Upon Completion
|
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Percentage Leased
|
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Calendar Quarter Anticipated to be Operational
|
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Costs Incurred to Date (1)
|
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Estimated Costs to Complete (1)
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||||||
Under Development
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|
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|
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|
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|
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Fort Meade/BW Corridor:
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||||||
4600 River Road
College Park, Maryland
|
|
102
|
|
|
25
|
%
|
|
3Q 21
|
|
$
|
8,928
|
|
|
$
|
21,581
|
|
|
|
|
|
|
|
|
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|
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||||||
Redstone Arsenal:
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|
|
|
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|||||||
7500 Advanced Gateway
Huntsville, Alabama |
|
135
|
|
|
100
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%
|
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2Q 20
|
|
7,195
|
|
|
11,923
|
|
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7600 Advanced Gateway
Huntsville, Alabama |
|
126
|
|
|
100
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%
|
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2Q 20
|
|
2,543
|
|
|
11,696
|
|
||
100 Secured Gateway
Huntsville, Alabama |
|
250
|
|
|
16
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%
|
|
2Q 21
|
|
25,763
|
|
|
32,837
|
|
||
8600 Advanced Gateway
Huntsville, Alabama |
|
105
|
|
|
100
|
%
|
|
4Q 20
|
|
4,931
|
|
|
22,749
|
|
||
8000 Rideout Road
Huntsville, Alabama |
|
100
|
|
|
0
|
%
|
|
4Q 21
|
|
2,564
|
|
|
22,636
|
|
||
6000 Redstone Gateway
Huntsville, Alabama
|
|
40
|
|
|
66
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%
|
|
4Q 21
|
|
788
|
|
|
8,738
|
|
||
Subtotal / Average
|
|
756
|
|
|
57
|
%
|
|
|
|
43,784
|
|
|
110,579
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||
Data Center Shells:
|
|
|
|
|
|
|
|
|
|
|
||||||
P2 A
Northern Virginia |
|
230
|
|
|
100
|
%
|
|
1Q 20
|
|
46,610
|
|
|
7,660
|
|
||
Oak Grove A
Northern Virginia |
|
216
|
|
|
100
|
%
|
|
2Q 20
|
|
29,420
|
|
|
18,875
|
|
||
P2 B
Northern Virginia |
|
274
|
|
|
100
|
%
|
|
3Q 20
|
|
32,115
|
|
|
32,521
|
|
||
P2 C
Northern Virginia |
|
230
|
|
|
100
|
%
|
|
1Q 21
|
|
18,727
|
|
|
32,393
|
|
||
Subtotal / Average
|
|
950
|
|
|
100
|
%
|
|
|
|
126,872
|
|
|
91,449
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||
NoVA Defense/IT:
|
|
|
|
|
|
|
|
|
|
|
||||||
NOVA Office C
Chantilly, Virginia |
|
348
|
|
|
100
|
%
|
|
2Q 22
|
|
20,870
|
|
|
85,349
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||
Regional Office:
|
|
|
|
|
|
|
|
|
|
|
||||||
2100 L Street Washington, DC
|
|
190
|
|
|
53
|
%
|
|
2Q 21
|
|
126,112
|
|
|
47,888
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||
Total Under Development
|
|
2,346
|
|
|
79
|
%
|
|
|
|
$
|
326,566
|
|
|
$
|
356,846
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Under Redevelopment
|
|
|
|
|
|
|
|
|
|
|
||||||
Fort Meade/BW Corridor:
|
|
|
|
|
|
|
|
|
|
|||||||
6950 Columbia Gateway
Columbia, Maryland (2) |
|
106
|
|
|
80
|
%
|
|
2Q 20
|
|
$
|
23,276
|
|
|
$
|
2,279
|
|
(1)
|
Includes land, development, leasing costs and allocated portion of structured parking and other shared infrastructure, if applicable.
|
(2)
|
This property had occupied square feet in service as of December 31, 2019. Therefore, the property and its occupied square feet are included in our operating property statistics, including the information set forth on the previous page.
|
Segment
|
|
Acres
|
|
Estimated Developable Square Feet
|
||
Defense/IT Locations:
|
|
|
|
|
|
|
Fort Meade/BW Corridor:
|
|
|
|
|
||
National Business Park (Annapolis Junction, MD)
|
|
196
|
|
|
2,106
|
|
Howard County, MD
|
|
19
|
|
|
290
|
|
Other
|
|
126
|
|
|
1,338
|
|
Total Fort Meade/BW Corridor
|
|
341
|
|
|
3,734
|
|
Northern Virginia Defense/IT Locations
|
|
52
|
|
|
1,618
|
|
Lackland Air Force Base
|
|
49
|
|
|
785
|
|
Navy Support Locations
|
|
44
|
|
|
109
|
|
Redstone Arsenal (1)
|
|
366
|
|
|
3,227
|
|
Data Center Shells
|
|
53
|
|
|
934
|
|
Total Defense/IT Locations
|
|
905
|
|
|
10,407
|
|
Regional Office
|
|
10
|
|
|
900
|
|
Total land owned/controlled for future development
|
|
915
|
|
|
11,307
|
|
Other land owned/controlled
|
|
43
|
|
|
638
|
|
Total Land Owned/Controlled
|
|
958
|
|
|
11,945
|
|
(1)
|
This land is owned by the USG and is controlled under a long-term master lease agreement to a consolidated joint venture. As this land is developed in the future, the joint venture will execute site-specific leases under the master lease agreement. Rental payments will commence under the site-specific leases as cash rents under tenant leases commence at the respective properties.
|
Year of Lease Expiration
|
|
Square Footage of Leases Expiring
|
|
Annualized Rental Revenue of Expiring Leases (1)
|
|
Percentage of Total Annualized Rental Revenue Expiring (1)
|
|
Total Annualized Rental Revenue of Expiring Leases Per Occupied Square Foot
|
||||||
2020: Office and Data Center Shells
|
|
1,525
|
|
|
$
|
53,898
|
|
|
10.3
|
%
|
|
|
$35.29
|
|
Wholesale Data Center
|
|
N/A
|
|
|
18,539
|
|
|
3.5
|
%
|
|
N/A
|
|
||
2021: Office and Data Center Shells
|
|
1,897
|
|
|
58,238
|
|
|
11.1
|
%
|
|
30.69
|
|
||
Wholesale Data Center
|
|
N/A
|
|
|
413
|
|
|
0.1
|
%
|
|
N/A
|
|
||
2022: Office and Data Center Shells
|
|
1,642
|
|
|
53,423
|
|
|
10.2
|
%
|
|
32.53
|
|
||
Wholesale Data Center
|
|
N/A
|
|
|
2,104
|
|
|
0.4
|
%
|
|
N/A
|
|
||
2023: Office and Data Center Shells
|
|
1,878
|
|
|
63,704
|
|
|
12.1
|
%
|
|
33.93
|
|
||
Wholesale Data Center
|
|
N/A
|
|
|
453
|
|
|
0.1
|
%
|
|
N/A
|
|
||
2024: Office and Data Center Shells
|
|
2,624
|
|
|
70,666
|
|
|
13.5
|
%
|
|
30.06
|
|
||
Wholesale Data Center
|
|
N/A
|
|
|
10
|
|
|
—
|
%
|
|
N/A
|
|
||
2025: Office and Data Center Shells
|
|
2,612
|
|
|
88,442
|
|
|
16.8
|
%
|
|
36.84
|
|
||
2026: Office and Data Center Shells
|
|
1,281
|
|
|
28,615
|
|
|
5.4
|
%
|
|
32.52
|
|
||
2027: Office and Data Center Shells
|
|
823
|
|
|
16,199
|
|
|
3.1
|
%
|
|
32.70
|
|
||
2028: Office and Data Center Shells
|
|
987
|
|
|
20,169
|
|
|
3.8
|
%
|
|
25.45
|
|
||
Wholesale Data Center
|
|
N/A
|
|
|
233
|
|
|
—
|
%
|
|
N/A
|
|
||
2029: Office and Data Center Shells
|
|
1,116
|
|
|
22,865
|
|
|
4.4
|
%
|
|
28.73
|
|
||
2030: Office and Data Center Shells
|
|
164
|
|
|
4,942
|
|
|
1.0
|
%
|
|
29.97
|
|
||
2031: Office and Data Center Shells
|
|
432
|
|
|
6,444
|
|
|
1.2
|
%
|
|
14.90
|
|
||
2033: Office and Data Center Shells
|
|
255
|
|
|
7,728
|
|
|
1.5
|
%
|
|
30.30
|
|
||
2034: Office and Data Center Shells
|
|
366
|
|
|
4,326
|
|
|
0.8
|
%
|
|
11.83
|
|
||
2035: Office and Data Center Shells
|
|
214
|
|
|
3,664
|
|
|
0.7
|
%
|
|
17.11
|
|
||
2037: Office and Data Center Shells (2)
|
|
—
|
|
|
136
|
|
|
—
|
%
|
|
N/A
|
|
||
2063: Office and Data Center Shells (2)
|
|
—
|
|
|
127
|
|
|
—
|
%
|
|
N/A
|
|
||
Total Operating Properties
|
|
17,816
|
|
|
$
|
525,338
|
|
|
100.0
|
%
|
|
N/A
|
|
|
Total Office and Data Center Shells
|
|
17,816
|
|
|
$
|
503,586
|
|
|
100.0
|
%
|
|
|
$31.28
|
|
(1)
|
Refer to definition provided on first page of Item 2 of this Annual Report on Form 10-K.
|
(2)
|
Includes only ground leases.
|
•
|
2,000 common shares in exchange for 2,000 COPLP common units in accordance with COPLP’s Third Amended and Restated Limited Partnership Agreement, as amended; and
|
•
|
1,000 common shares in aggregate to four individuals in satisfaction of their claims of being entitled to the shares pursuant to a prior transaction to which COPT was a party. In return for these shares, COPT received a waiver from such individuals of any rights, claims or cause of action at law or in equity with respect to such shares.
|
|
|
Period Ended
|
||||||||||||||||||||||
Index
|
|
12/31/14
|
|
|
12/31/15
|
|
|
12/31/16
|
|
|
12/31/17
|
|
|
12/31/18
|
|
|
12/31/19
|
|
||||||
Corporate Office Properties Trust
|
|
$
|
100.00
|
|
|
$
|
80.58
|
|
|
$
|
119.75
|
|
|
$
|
115.85
|
|
|
$
|
87.07
|
|
|
$
|
126.44
|
|
S&P 500
|
|
$
|
100.00
|
|
|
$
|
101.38
|
|
|
$
|
113.51
|
|
|
$
|
138.29
|
|
|
$
|
132.23
|
|
|
$
|
173.86
|
|
NAREIT All Equity REIT Index
|
|
$
|
100.00
|
|
|
$
|
102.83
|
|
|
$
|
111.70
|
|
|
$
|
121.39
|
|
|
$
|
116.48
|
|
|
$
|
149.86
|
|
Corporate Office Properties Trust and Subsidiaries
|
|||||||||||||||||||
(in thousands, except per share data and number of properties)
|
|||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues from real estate operations
|
$
|
527,463
|
|
|
$
|
517,253
|
|
|
$
|
509,980
|
|
|
$
|
525,964
|
|
|
$
|
519,064
|
|
Construction contract and other service revenues
|
113,763
|
|
|
60,859
|
|
|
102,840
|
|
|
48,364
|
|
|
106,402
|
|
|||||
Total revenues
|
641,226
|
|
|
578,112
|
|
|
612,820
|
|
|
574,328
|
|
|
625,466
|
|
|||||
Operating expenses
|
|
|
|
|
|
|
|
|
|
||||||||||
Property operating expenses
|
198,143
|
|
|
201,035
|
|
|
190,964
|
|
|
197,530
|
|
|
194,494
|
|
|||||
Depreciation and amortization associated with real estate operations
|
137,069
|
|
|
137,116
|
|
|
134,228
|
|
|
132,719
|
|
|
140,025
|
|
|||||
Construction contract and other service expenses
|
109,962
|
|
|
58,326
|
|
|
99,618
|
|
|
45,481
|
|
|
102,696
|
|
|||||
Impairment losses
|
329
|
|
|
2,367
|
|
|
15,123
|
|
|
101,391
|
|
|
23,289
|
|
|||||
General, administrative and leasing expenses
|
35,402
|
|
|
28,900
|
|
|
30,837
|
|
|
36,553
|
|
|
31,361
|
|
|||||
Business development expenses and land carry costs
|
4,239
|
|
|
5,840
|
|
|
6,213
|
|
|
8,244
|
|
|
13,507
|
|
|||||
Total operating expenses
|
485,144
|
|
|
433,584
|
|
|
476,983
|
|
|
521,918
|
|
|
505,372
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
|
(71,052
|
)
|
|
(75,385
|
)
|
|
(76,983
|
)
|
|
(83,163
|
)
|
|
(89,074
|
)
|
|||||
Interest and other income
|
7,894
|
|
|
4,358
|
|
|
6,318
|
|
|
5,444
|
|
|
4,517
|
|
|||||
Gain on sales of real estate (1)
|
105,230
|
|
|
2,340
|
|
|
9,890
|
|
|
59,679
|
|
|
68,047
|
|
|||||
(Loss) gain on early extinguishment of debt
|
—
|
|
|
(258
|
)
|
|
(513
|
)
|
|
(1,110
|
)
|
|
85,275
|
|
|||||
Income from continuing operations before equity in income of unconsolidated entities and income taxes
|
198,154
|
|
|
75,583
|
|
|
74,549
|
|
|
33,260
|
|
|
188,859
|
|
|||||
Equity in income of unconsolidated entities
|
1,633
|
|
|
2,697
|
|
|
1,490
|
|
|
752
|
|
|
62
|
|
|||||
Income tax benefit (expense)
|
217
|
|
|
363
|
|
|
(1,098
|
)
|
|
(244
|
)
|
|
(199
|
)
|
|||||
Income from continuing operations
|
200,004
|
|
|
78,643
|
|
|
74,941
|
|
|
33,768
|
|
|
188,722
|
|
|||||
Discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
156
|
|
|||||
Net income
|
200,004
|
|
|
78,643
|
|
|
74,941
|
|
|
33,768
|
|
|
188,878
|
|
|||||
Net income attributable to noncontrolling interests
|
(8,312
|
)
|
|
(6,342
|
)
|
|
(6,196
|
)
|
|
(4,878
|
)
|
|
(10,578
|
)
|
|||||
Net income attributable to COPT
|
191,692
|
|
|
72,301
|
|
|
68,745
|
|
|
28,890
|
|
|
178,300
|
|
|||||
Preferred share dividends
|
—
|
|
|
—
|
|
|
(6,219
|
)
|
|
(14,297
|
)
|
|
(14,210
|
)
|
|||||
Issuance costs associated with redeemed preferred shares (2)
|
—
|
|
|
—
|
|
|
(6,847
|
)
|
|
(17
|
)
|
|
—
|
|
|||||
Net income attributable to COPT common shareholders
|
$
|
191,692
|
|
|
$
|
72,301
|
|
|
$
|
55,679
|
|
|
$
|
14,576
|
|
|
$
|
164,090
|
|
Basic earnings per common share (3)
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
$
|
1.72
|
|
|
$
|
0.69
|
|
|
$
|
0.56
|
|
|
$
|
0.15
|
|
|
$
|
1.74
|
|
Net income
|
$
|
1.72
|
|
|
$
|
0.69
|
|
|
$
|
0.56
|
|
|
$
|
0.15
|
|
|
$
|
1.74
|
|
Diluted earnings per common share (3)
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
$
|
1.71
|
|
|
$
|
0.69
|
|
|
$
|
0.56
|
|
|
$
|
0.15
|
|
|
$
|
1.74
|
|
Net income
|
$
|
1.71
|
|
|
$
|
0.69
|
|
|
$
|
0.56
|
|
|
$
|
0.15
|
|
|
$
|
1.74
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average common shares outstanding – basic
|
111,196
|
|
|
103,946
|
|
|
98,969
|
|
|
94,502
|
|
|
93,914
|
|
|||||
Weighted average common shares outstanding – diluted
|
111,623
|
|
|
104,125
|
|
|
99,155
|
|
|
94,594
|
|
|
97,667
|
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Balance Sheet Data (as of year end):
|
|
|
|
|
|
|
|
|
|
||||||||||
Total properties, net
|
$
|
3,340,886
|
|
|
$
|
3,250,626
|
|
|
$
|
3,141,105
|
|
|
$
|
3,073,362
|
|
|
$
|
3,349,748
|
|
Total assets
|
$
|
3,854,453
|
|
|
$
|
3,656,005
|
|
|
$
|
3,595,205
|
|
|
$
|
3,798,998
|
|
|
$
|
3,909,312
|
|
Debt, net
|
$
|
1,831,139
|
|
|
$
|
1,823,909
|
|
|
$
|
1,828,333
|
|
|
$
|
1,904,001
|
|
|
$
|
2,077,752
|
|
Total liabilities
|
$
|
2,105,777
|
|
|
$
|
2,002,697
|
|
|
$
|
2,103,773
|
|
|
$
|
2,163,242
|
|
|
$
|
2,273,530
|
|
Redeemable noncontrolling interests
|
$
|
29,431
|
|
|
$
|
26,260
|
|
|
$
|
23,125
|
|
|
$
|
22,979
|
|
|
$
|
19,218
|
|
Total equity
|
$
|
1,719,245
|
|
|
$
|
1,627,048
|
|
|
$
|
1,468,307
|
|
|
$
|
1,612,777
|
|
|
$
|
1,616,564
|
|
Other Financial Data (for the year ended December 31):
|
|
|
|
|
|
|
|
|
|||||||||||
Cash flows provided by (used in):
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating activities
|
$
|
228,558
|
|
|
$
|
180,482
|
|
|
$
|
230,121
|
|
|
$
|
234,270
|
|
|
$
|
205,733
|
|
Investing activities
|
$
|
(138,015
|
)
|
|
$
|
(232,918
|
)
|
|
$
|
(89,363
|
)
|
|
$
|
71,174
|
|
|
$
|
(309,072
|
)
|
Financing activities
|
$
|
(84,363
|
)
|
|
$
|
49,555
|
|
|
$
|
(338,546
|
)
|
|
$
|
(155,088
|
)
|
|
$
|
156,338
|
|
Numerator for diluted EPS
|
$
|
191,201
|
|
|
$
|
71,839
|
|
|
$
|
55,230
|
|
|
$
|
14,157
|
|
|
$
|
169,787
|
|
Diluted funds from operations (“FFO”) (4)(5)
|
$
|
228,514
|
|
|
$
|
214,303
|
|
|
$
|
199,239
|
|
|
$
|
189,449
|
|
|
$
|
264,882
|
|
Diluted FFO, as adjusted for comparability (4)
|
$
|
229,344
|
|
|
$
|
215,800
|
|
|
$
|
207,356
|
|
|
$
|
197,157
|
|
|
$
|
195,824
|
|
Diluted FFO per share (4)(5)
|
$
|
2.02
|
|
|
$
|
1.99
|
|
|
$
|
1.94
|
|
|
$
|
1.93
|
|
|
$
|
2.71
|
|
Diluted FFO, as adjusted for comparability per share (4)
|
$
|
2.03
|
|
|
$
|
2.01
|
|
|
$
|
2.02
|
|
|
$
|
2.01
|
|
|
$
|
2.01
|
|
Cash dividends declared per common share
|
$
|
1.10
|
|
|
$
|
1.10
|
|
|
$
|
1.10
|
|
|
$
|
1.10
|
|
|
$
|
1.10
|
|
Operating Property Data (as of year end):
|
|
|
|
|
|
|
|
|
|
||||||||||
Number of office and data center shells owned (6)
|
170
|
|
|
163
|
|
|
159
|
|
|
164
|
|
|
177
|
|
|||||
Total rentable square feet owned (6)
|
19,173
|
|
|
18,094
|
|
|
17,345
|
|
|
17,190
|
|
|
18,053
|
|
(1)
|
Reflects gain from sales of properties and interests in properties not associated with discontinued operations.
|
(2)
|
Reflects a decrease to net income available to common shareholders pertaining to the original issuance costs recognized in connection with the redemption of the Series K Preferred Shares (following shareholder notification of such redemption in December 2016) and Series L Preferred Shares in 2017.
|
(3)
|
Basic and diluted earnings per common share are calculated based on amounts attributable to common shareholders of COPT.
|
(4)
|
For definitions and reconciliations of these measures to their comparable measures under generally accepted accounting principles, you should refer to the section entitled “Funds from Operations” within the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”
|
(5)
|
Prior period amounts include retrospective adjustments in connection with our adoption in 2019 of Nareit’s 2018 FFO Whitepaper Restatement which changed the prior definition of FFO to also exclude gains on sales and impairment losses of properties other than previously depreciated operating properties, net of associated income tax.
|
(6)
|
Amounts reported reflect only operating office and data center shell properties. Includes properties owned through unconsolidated real estate joint ventures (15 properties as of December 31, 2019 and 6 properties as of December 31, 2018, 2017 and 2016).
|
Corporate Office Properties, L.P. and Subsidiaries
|
|||||||||||||||||||
(in thousands, except per share data and number of properties)
|
|||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues from real estate operations
|
$
|
527,463
|
|
|
$
|
517,253
|
|
|
$
|
509,980
|
|
|
$
|
525,964
|
|
|
$
|
519,064
|
|
Construction contract and other service revenues
|
113,763
|
|
|
60,859
|
|
|
102,840
|
|
|
48,364
|
|
|
106,402
|
|
|||||
Total revenues
|
641,226
|
|
|
578,112
|
|
|
612,820
|
|
|
574,328
|
|
|
625,466
|
|
|||||
Operating expenses
|
|
|
|
|
|
|
|
|
|
||||||||||
Property operating expenses
|
198,143
|
|
|
201,035
|
|
|
190,964
|
|
|
197,530
|
|
|
194,494
|
|
|||||
Depreciation and amortization associated with real estate operations
|
137,069
|
|
|
137,116
|
|
|
134,228
|
|
|
132,719
|
|
|
140,025
|
|
|||||
Construction contract and other service expenses
|
109,962
|
|
|
58,326
|
|
|
99,618
|
|
|
45,481
|
|
|
102,696
|
|
|||||
Impairment losses
|
329
|
|
|
2,367
|
|
|
15,123
|
|
|
101,391
|
|
|
23,289
|
|
|||||
General, administrative and leasing expenses
|
35,402
|
|
|
28,900
|
|
|
30,837
|
|
|
36,553
|
|
|
31,361
|
|
|||||
Business development expenses and land carry costs
|
4,239
|
|
|
5,840
|
|
|
6,213
|
|
|
8,244
|
|
|
13,507
|
|
|||||
Total operating expenses
|
485,144
|
|
|
433,584
|
|
|
476,983
|
|
|
521,918
|
|
|
505,372
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
|
(71,052
|
)
|
|
(75,385
|
)
|
|
(76,983
|
)
|
|
(83,163
|
)
|
|
(89,074
|
)
|
|||||
Interest and other income
|
7,894
|
|
|
4,358
|
|
|
6,318
|
|
|
5,444
|
|
|
4,517
|
|
|||||
Gain on sales of real estate (1)
|
105,230
|
|
|
2,340
|
|
|
9,890
|
|
|
59,679
|
|
|
68,047
|
|
|||||
(Loss) gain on early extinguishment of debt
|
—
|
|
|
(258
|
)
|
|
(513
|
)
|
|
(1,110
|
)
|
|
85,275
|
|
|||||
Income from continuing operations before equity in income of unconsolidated entities and income taxes
|
198,154
|
|
|
75,583
|
|
|
74,549
|
|
|
33,260
|
|
|
188,859
|
|
|||||
Equity in income of unconsolidated entities
|
1,633
|
|
|
2,697
|
|
|
1,490
|
|
|
752
|
|
|
62
|
|
|||||
Income tax benefit (expense)
|
217
|
|
|
363
|
|
|
(1,098
|
)
|
|
(244
|
)
|
|
(199
|
)
|
|||||
Income from continuing operations
|
200,004
|
|
|
78,643
|
|
|
74,941
|
|
|
33,768
|
|
|
188,722
|
|
|||||
Discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
156
|
|
|||||
Net income
|
200,004
|
|
|
78,643
|
|
|
74,941
|
|
|
33,768
|
|
|
188,878
|
|
|||||
Net income attributable to noncontrolling interests
|
(5,385
|
)
|
|
(3,940
|
)
|
|
(3,646
|
)
|
|
(3,715
|
)
|
|
(3,520
|
)
|
|||||
Net income attributable to COPLP
|
194,619
|
|
|
74,703
|
|
|
71,295
|
|
|
30,053
|
|
|
185,358
|
|
|||||
Preferred unit distributions
|
(564
|
)
|
|
(660
|
)
|
|
(6,879
|
)
|
|
(14,957
|
)
|
|
(14,870
|
)
|
|||||
Issuance costs associated with redeemed preferred units (2)
|
—
|
|
|
—
|
|
|
(6,847
|
)
|
|
(17
|
)
|
|
—
|
|
|||||
Net income attributable to COPLP common unitholders
|
$
|
194,055
|
|
|
$
|
74,043
|
|
|
$
|
57,569
|
|
|
$
|
15,079
|
|
|
$
|
170,488
|
|
Basic earnings per common unit (3)
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
$
|
1.72
|
|
|
$
|
0.69
|
|
|
$
|
0.56
|
|
|
$
|
0.15
|
|
|
$
|
1.74
|
|
Net income
|
$
|
1.72
|
|
|
$
|
0.69
|
|
|
$
|
0.56
|
|
|
$
|
0.15
|
|
|
$
|
1.74
|
|
Diluted earnings per common unit (3)
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
$
|
1.71
|
|
|
$
|
0.69
|
|
|
$
|
0.56
|
|
|
$
|
0.15
|
|
|
$
|
1.74
|
|
Net income
|
$
|
1.71
|
|
|
$
|
0.69
|
|
|
$
|
0.56
|
|
|
$
|
0.15
|
|
|
$
|
1.74
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average common units outstanding – basic
|
112,495
|
|
|
106,414
|
|
|
102,331
|
|
|
98,135
|
|
|
97,606
|
|
|||||
Weighted average common units outstanding – diluted
|
112,922
|
|
|
106,593
|
|
|
102,517
|
|
|
98,227
|
|
|
97,667
|
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Balance Sheet Data (as of year end):
|
|
|
|
|
|
|
|
|
|
||||||||||
Total properties, net
|
$
|
3,340,886
|
|
|
$
|
3,250,626
|
|
|
$
|
3,141,105
|
|
|
$
|
3,073,362
|
|
|
$
|
3,349,748
|
|
Total assets
|
$
|
3,851,393
|
|
|
$
|
3,652,137
|
|
|
$
|
3,590,589
|
|
|
$
|
3,793,561
|
|
|
$
|
3,903,549
|
|
Debt, net
|
$
|
1,831,139
|
|
|
$
|
1,823,909
|
|
|
$
|
1,828,333
|
|
|
$
|
1,904,001
|
|
|
$
|
2,077,752
|
|
Total liabilities
|
$
|
2,102,717
|
|
|
$
|
1,998,829
|
|
|
$
|
2,099,157
|
|
|
$
|
2,157,805
|
|
|
$
|
2,267,767
|
|
Redeemable noncontrolling interests
|
$
|
29,431
|
|
|
$
|
26,260
|
|
|
$
|
23,125
|
|
|
$
|
22,979
|
|
|
$
|
19,218
|
|
Total equity
|
$
|
1,719,245
|
|
|
$
|
1,627,048
|
|
|
$
|
1,468,307
|
|
|
$
|
1,612,777
|
|
|
$
|
1,616,564
|
|
Other Financial Data (for the year ended December 31):
|
|
|
|
|
|
|
|
|
|||||||||||
Cash flows provided by (used in):
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating activities
|
$
|
228,558
|
|
|
$
|
180,482
|
|
|
$
|
230,121
|
|
|
$
|
234,270
|
|
|
$
|
205,733
|
|
Investing activities
|
$
|
(138,015
|
)
|
|
$
|
(232,918
|
)
|
|
$
|
(89,363
|
)
|
|
$
|
71,174
|
|
|
$
|
(309,072
|
)
|
Financing activities
|
$
|
(84,363
|
)
|
|
$
|
49,555
|
|
|
$
|
(338,546
|
)
|
|
$
|
(155,088
|
)
|
|
$
|
156,338
|
|
Numerator for diluted EPU
|
$
|
193,435
|
|
|
$
|
73,581
|
|
|
$
|
57,120
|
|
|
$
|
14,660
|
|
|
$
|
169,782
|
|
Cash distributions declared per common unit
|
$
|
1.10
|
|
|
$
|
1.10
|
|
|
$
|
1.10
|
|
|
$
|
1.10
|
|
|
$
|
1.10
|
|
Operating Property Data (as of year end):
|
|
|
|
|
|
|
|
|
|
||||||||||
Number of office and data center shells owned (4)
|
170
|
|
|
163
|
|
|
159
|
|
|
164
|
|
|
177
|
|
|||||
Total rentable square feet owned (4)
|
19,173
|
|
|
18,094
|
|
|
17,345
|
|
|
17,190
|
|
|
18,053
|
|
(1)
|
Reflects gain from sales of properties and interests in properties not associated with discontinued operations.
|
(2)
|
Reflects a decrease to net income available to common unitholders pertaining to the original issuance costs recognized in connection with the redemption of the Series K Preferred Units (following notification of such redemption in December 2016) and Series L Preferred Units in 2017.
|
(3)
|
Basic and diluted earnings per common unit are calculated based on amounts attributable to common unitholders of COPLP.
|
(4)
|
Amounts reported reflect only operating office and data center shell properties. Includes properties owned through unconsolidated real estate joint ventures (15 properties as of December 31, 2019 and 6 properties as of December 31, 2018, 2017 and 2016).
|
•
|
general economic and business conditions, which will, among other things, affect office property and data center demand and rents, tenant creditworthiness, interest rates, financing availability and property values;
|
•
|
adverse changes in the real estate markets, including, among other things, increased competition with other companies;
|
•
|
governmental actions and initiatives, including risks associated with the impact of a prolonged government shutdown or budgetary reductions or impasses, such as a reduction in rental revenues, non-renewal of leases and/or reduced or delayed demand for additional space by our strategic customers;
|
•
|
our ability to borrow on favorable terms;
|
•
|
risks of real estate acquisition and development activities, including, among other things, risks that development projects may not be completed on schedule, that tenants may not take occupancy or pay rent or that development or operating costs may be greater than anticipated;
|
•
|
risks of investing through joint venture structures, including risks that our joint venture partners may not fulfill their financial obligations as investors or may take actions that are inconsistent with our objectives;
|
•
|
changes in our plans for properties or views of market economic conditions or failure to obtain development rights, either of which could result in recognition of significant impairment losses;
|
•
|
our ability to satisfy and operate effectively under Federal income tax rules relating to real estate investment trusts and partnerships;
|
•
|
possible adverse changes in tax laws;
|
•
|
the dilutive effects of issuing additional common shares;
|
•
|
our ability to achieve projected results;
|
•
|
security breaches relating to cyber attacks, cyber intrusions or other factors; and
|
•
|
environmental requirements.
|
•
|
record-breaking leasing volume, which helped fuel;
|
•
|
accelerated development volume that we funded in large part using; and
|
•
|
capital raised by selling interests in data center shells through a newly-formed joint venture.
|
•
|
record-breaking development leasing of 2.2 million square feet, which exceeded our previous record set in 2012 by 81%, and came on the heels of last year’s near-record volume. This year’s development leasing volume was highlighted by:
|
•
|
1.2 million square feet in our data center shell sub-segment;
|
•
|
548,000 square feet in our Redstone Arsenal sub-segment in Huntsville, Alabama, which exceeded the combined total square footage previously placed in service by us in that sub-segment since our entry nearly 10 years ago; and
|
•
|
348,000 square feet in a property to be occupied by the USG in our Northern Virginia Defense/IT sub-segment.
|
•
|
vacant space leasing totaling 784,000 square feet, representing our highest annual volume since 2010, most of which was in the Fort Meade/BW Corridor and Northern Virginia Defense/IT sub-segments and Regional Office segment; and
|
•
|
a portfolio-wide tenant retention rate of 76.7% (or 79.1% for our Defense/IT Locations) achieved by renewing leases on 1.9 million square feet (defined below in the section entitled “Occupancy and Leasing”). Strong tenant retention is key to our asset management strategy in order to maximize revenue (by avoiding downtime) and minimize leasing capital.
|
•
|
a healthy defense spending environment and continued bipartisan support towards funding our national defense. Successive increases in defense spending since 2016, including a two-year budget deal signed into law in August 2019 that removed the possibility of sequestration cuts by raising spending caps previously set forth under the Budget Control Act of 2011, increased USG and defense contractor tenants’ ability to invest in facility planning. This benefited our 2019 leasing results, as demand for space worked its way through the Government’s appropriations process, fueling USG and defense contractor demand for new space and expansion into previously vacant space; and
|
•
|
continued demand for data center shells. Our leasing included five new data center shells in Northern Virginia, the largest data center market in the world, and represented further expansion of our relationship with an existing defense contractor customer. As of year end, we held land that would accommodate an additional 934,000 square feet in future data center shell development.
|
•
|
the $330.7 million in net proceeds from the BREIT-COPT transactions discussed above; and
|
•
|
$46.5 million in net proceeds from COPT’s issuance of 1.6 million common shares under forward equity sale agreements originated in 2017 that COPT contributed into COPLP in exchange for an equal number of units in COPLP.
|
•
|
how we expect to generate cash for short and long-term capital needs; and
|
•
|
our commitments and contingencies.
|
•
|
include total information pertaining to properties owned through unconsolidated real estate joint ventures except for amounts reported for annualized rental revenue, which represent the portion attributable to our ownership interest;
|
•
|
exclude, for purposes of amounts reported as of December 31, 2017, the unoccupied portion of two newly-developed properties that were completed but reported as development projects since they were held for future lease to the USG. Effective in 2018, these properties were fully included in our operating property statistics; and
|
•
|
exclude, for purposes of amounts reported as of December 31, 2017, a property reported as held for sale that we sold in 2017 subject to our providing a financial guaranty to the buyer under which we indemnified it for up to $20 million in losses it could incur related to a potential defined capital event occurring on the property; our financial guaranty to the buyer expired on October 1, 2018, resulting in no losses to us. Accordingly, we did not recognize the sale of this property for accounting purposes until the expiration of the guaranty on October 1, 2018.
|
|
|
Percentage of Annualized Rental
Revenue of Operating Properties
for 20 Largest Tenants as of December 31,
|
||||||||||
Tenant
|
|
2019
|
|
2018
|
|
2017
|
||||||
USG
|
|
34.6
|
%
|
|
32.7
|
%
|
|
31.7
|
%
|
|||
Fortune 500 Company
|
|
7.9
|
%
|
|
8.9
|
%
|
|
7.6
|
%
|
|||
General Dynamics Corporation (1)
|
|
4.9
|
%
|
|
4.7
|
%
|
|
3.5
|
%
|
|||
The Boeing Company (1)
|
|
3.2
|
%
|
|
3.8
|
%
|
|
4.2
|
%
|
|||
CACI International Inc.
|
|
2.5
|
%
|
|
2.4
|
%
|
|
1.5
|
%
|
|||
Northrop Grumman Corporation (1)
|
|
2.2
|
%
|
|
2.3
|
%
|
|
2.2
|
%
|
|||
CareFirst Inc.
|
|
2.1
|
%
|
|
2.2
|
%
|
|
2.1
|
%
|
|||
Booz Allen Hamilton, Inc.
|
|
2.1
|
%
|
|
2.0
|
%
|
|
2.0
|
%
|
|||
Wells Fargo & Company (1)
|
|
1.3
|
%
|
|
1.3
|
%
|
|
1.7
|
%
|
|||
AT&T Corporation (1)
|
|
1.3
|
%
|
|
0.7
|
%
|
|
1.2
|
%
|
|||
University of Maryland
|
|
1.2
|
%
|
|
1.4
|
%
|
|
1.0
|
%
|
|||
Miles and Stockbridge, PC
|
|
1.1
|
%
|
|
1.1
|
%
|
|
1.1
|
%
|
|||
Kratos Defense and Security Solutions (1)
|
|
1.0
|
%
|
|
1.0
|
%
|
|
1.0
|
%
|
|||
Science Applications International Corp. (1)
|
|
1.0
|
%
|
|
1.3
|
%
|
|
0.9
|
%
|
|||
The Raytheon Company (1)
|
|
1.0
|
%
|
|
1.1
|
%
|
|
1.1
|
%
|
|||
Jacobs Engineering Group Inc
|
|
1.0
|
%
|
|
N/A
|
|
|
N/A
|
|
|||
Transamerica Life Insurance Company
|
|
0.9
|
%
|
|
0.9
|
%
|
|
0.9
|
%
|
|||
Peraton Inc.
|
|
0.9
|
%
|
|
N/A
|
|
|
N/A
|
|
|||
The MITRE Corporation
|
|
0.7
|
%
|
|
0.8
|
%
|
|
0.9
|
%
|
|||
Mantech International Corp.
|
|
0.7
|
%
|
|
N/A
|
|
|
N/A
|
|
|||
International Business Machines Corp.
|
|
N/A
|
|
|
0.7
|
%
|
|
N/A
|
|
|||
KEYW Corporation
|
|
N/A
|
|
|
1.0
|
%
|
|
1.2
|
%
|
|||
Accenture Federal Services, LLC
|
|
N/A
|
|
|
0.7
|
%
|
|
0.7
|
%
|
|||
CSRA Inc. (1)
|
|
N/A
|
|
|
N/A
|
|
|
2.3
|
%
|
|||
Subtotal of 20 largest tenants
|
|
71.6
|
%
|
|
71.0
|
%
|
|
68.8
|
%
|
|||
All remaining tenants
|
|
28.4
|
%
|
|
29.0
|
%
|
|
31.2
|
%
|
|||
Total
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|||
Total annualized rental revenue
|
|
$
|
525,338
|
|
|
$
|
522,898
|
|
|
$
|
501,212
|
|
(1) Includes affiliated organizations.
|
|
|
Percentage of Annualized Rental Revenue of Office and Data Center Shell Properties as of December 31,
|
|
Number of Properties as of December 31,
|
||||||||||||||
Region
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
||||||
Defense/IT Locations:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fort Meade/BW Corridor
|
|
51.3
|
%
|
|
49.5
|
%
|
|
51.6
|
%
|
|
88
|
|
|
87
|
|
|
87
|
|
Northern Virginia Defense/IT
|
|
10.9
|
%
|
|
12.0
|
%
|
|
10.8
|
%
|
|
13
|
|
|
13
|
|
|
12
|
|
Lackland Air Force Base
|
|
10.5
|
%
|
|
10.3
|
%
|
|
9.9
|
%
|
|
7
|
|
|
7
|
|
|
7
|
|
Navy Support Locations
|
|
6.5
|
%
|
|
6.3
|
%
|
|
6.5
|
%
|
|
21
|
|
|
21
|
|
|
21
|
|
Redstone Arsenal
|
|
3.5
|
%
|
|
2.8
|
%
|
|
3.0
|
%
|
|
10
|
|
|
8
|
|
|
7
|
|
Data Center Shells
|
|
5.3
|
%
|
|
7.0
|
%
|
|
5.6
|
%
|
|
22
|
|
|
18
|
|
|
15
|
|
Total Defense/IT Locations
|
|
87.9
|
%
|
|
87.9
|
%
|
|
87.4
|
%
|
|
161
|
|
|
154
|
|
|
149
|
|
Regional Office
|
|
11.5
|
%
|
|
11.5
|
%
|
|
12.1
|
%
|
|
7
|
|
|
7
|
|
|
7
|
|
Other
|
|
0.6
|
%
|
|
0.6
|
%
|
|
0.5
|
%
|
|
2
|
|
|
2
|
|
|
3
|
|
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
170
|
|
|
163
|
|
|
159
|
|
|
December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Occupancy rates at period end
|
|
|
|
|
|
|
|
||||
Total
|
92.9
|
%
|
|
93.0
|
%
|
|
93.6
|
%
|
|||
Defense/IT Locations:
|
|
|
|
|
|
||||||
Fort Meade/BW Corridor
|
92.4
|
%
|
|
91.1
|
%
|
|
95.6
|
%
|
|||
Northern Virginia Defense/IT
|
82.4
|
%
|
|
91.3
|
%
|
|
89.1
|
%
|
|||
Lackland Air Force Base
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|||
Navy Support Locations
|
92.5
|
%
|
|
90.5
|
%
|
|
87.7
|
%
|
|||
Redstone Arsenal
|
99.3
|
%
|
|
99.0
|
%
|
|
98.2
|
%
|
|||
Data Center Shells
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|||
Total Defense/IT Locations
|
93.7
|
%
|
|
93.6
|
%
|
|
95.2
|
%
|
|||
Regional Office
|
88.1
|
%
|
|
89.2
|
%
|
|
89.5
|
%
|
|||
Other
|
73.0
|
%
|
|
77.2
|
%
|
|
34.4
|
%
|
|||
Average contractual annualized rental rate per square foot at year end (1)
|
$
|
31.28
|
|
|
$
|
30.41
|
|
|
$
|
30.41
|
|
(1)
|
Includes estimated expense reimbursements.
|
|
Rentable
Square Feet
|
|
Occupied
Square Feet
|
||
|
(in thousands)
|
||||
December 31, 2018
|
18,094
|
|
|
16,821
|
|
Vacated upon lease expiration (1)
|
—
|
|
|
(997
|
)
|
Occupancy for new leases
|
—
|
|
|
852
|
|
Developed or redeveloped
|
1,179
|
|
|
1,179
|
|
Removed from operations (2)
|
(155
|
)
|
|
—
|
|
Other changes
|
55
|
|
|
(39
|
)
|
December 31, 2019
|
19,173
|
|
|
17,816
|
|
(1)
|
Includes lease terminations and space reductions occurring in connection with lease renewals.
|
(2)
|
Includes the removal from service of our oldest data center shell property, which we intend to repurpose.
|
•
|
Fort Meade/BW Corridor and Navy Support Locations: Occupancy increased due primarily to progress made in leasing previously vacant space in these sub-segments;
|
•
|
Northern Virginia Defense/IT: Occupancy decreased due primarily to two large tenant vacancies during the year. As of December 31, 2019, eight of the 13 properties in this sub-segment had combined occupancy of 98.0%, while the other five properties had combined occupancy of 55.3%, and we had scheduled lease expirations in the sub-segment in 2020 for 121,000 square feet, or 7% of its occupied square feet. This sub-segment was 87.7% leased as of year end (inclusive of 106,000 square feet under leases yet to commence);
|
•
|
Regional Office: Includes properties in Baltimore City and two sub-markets in Northern Virginia. While total occupancy in this segment decreased only slightly from year end 2018 to 2019, occupancy decreases in our Baltimore City properties (which were 89.4% occupied as of December 31, 2019) more than offset the effect of occupancy increases in the Northern Virginia properties (which were 85.0% occupied as of December 31, 2019). As of December 31, 2019, we had scheduled lease expirations in 2020 for 77,000 square feet, or 4% of this segment’s occupied square feet; and
|
•
|
Other: As of December 31, 2019, our Other segment included two properties totaling 157,000 square feet in Aberdeen, Maryland.
|
|
|
Expiration of Annualized Rental Revenue of Operating Properties
|
|||||||||||||||||||
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
2024
|
|
Thereafter
|
|
Total
|
|||||||
Defense/IT Locations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Fort Meade/BW Corridor
|
|
5.9
|
%
|
|
7.0
|
%
|
|
5.0
|
%
|
|
9.4
|
%
|
|
8.0
|
%
|
|
13.9
|
%
|
|
49.2
|
%
|
Northern Virginia Defense/IT
|
|
0.7
|
%
|
|
0.6
|
%
|
|
0.9
|
%
|
|
0.9
|
%
|
|
2.9
|
%
|
|
4.5
|
%
|
|
10.5
|
%
|
Lackland Air Force Base
|
|
2.3
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
|
7.8
|
%
|
|
10.1
|
%
|
Navy Support Locations
|
|
0.8
|
%
|
|
1.4
|
%
|
|
0.9
|
%
|
|
1.0
|
%
|
|
0.8
|
%
|
|
1.3
|
%
|
|
6.2
|
%
|
Redstone Arsenal
|
|
0.0
|
%
|
|
1.7
|
%
|
|
0.2
|
%
|
|
0.0
|
%
|
|
0.3
|
%
|
|
1.1
|
%
|
|
3.3
|
%
|
Data Center Shells
|
|
0.0
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
|
0.6
|
%
|
|
4.5
|
%
|
|
5.1
|
%
|
Regional Office
|
|
0.5
|
%
|
|
0.2
|
%
|
|
3.2
|
%
|
|
0.8
|
%
|
|
0.8
|
%
|
|
5.5
|
%
|
|
11.0
|
%
|
Other
|
|
0.1
|
%
|
|
0.2
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
|
0.2
|
%
|
|
0.5
|
%
|
Wholesale Data Center
|
|
3.5
|
%
|
|
0.1
|
%
|
|
0.4
|
%
|
|
0.1
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
|
4.1
|
%
|
Total
|
|
13.8
|
%
|
|
11.2
|
%
|
|
10.6
|
%
|
|
12.2
|
%
|
|
13.4
|
%
|
|
38.8
|
%
|
|
100.0
|
%
|
•
|
office and data center shell properties:
|
•
|
stably owned and 100% operational throughout the two years being compared. We define these as changes from “Same Properties.” For further discussion of the concept of “operational,” refer to the section of Note 2 of the consolidated financial statements entitled “Properties”;
|
•
|
developed or redeveloped and placed into service that were not 100% operational throughout the two years being compared; and
|
•
|
disposed; and
|
•
|
our wholesale data center.
|
|
For the Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
Variance
|
||||||
|
(in thousands)
|
||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|||
Revenues from real estate operations
|
$
|
527,463
|
|
|
$
|
517,253
|
|
|
$
|
10,210
|
|
Construction contract and other service revenues
|
113,763
|
|
|
60,859
|
|
|
52,904
|
|
|||
Total revenues
|
641,226
|
|
|
578,112
|
|
|
63,114
|
|
|||
Operating expenses
|
|
|
|
|
|
|
|
|
|||
Property operating expenses
|
198,143
|
|
|
201,035
|
|
|
(2,892
|
)
|
|||
Depreciation and amortization associated with real estate operations
|
137,069
|
|
|
137,116
|
|
|
(47
|
)
|
|||
Construction contract and other service expenses
|
109,962
|
|
|
58,326
|
|
|
51,636
|
|
|||
Impairment losses
|
329
|
|
|
2,367
|
|
|
(2,038
|
)
|
|||
General, administrative and leasing expenses
|
35,402
|
|
|
28,900
|
|
|
6,502
|
|
|||
Business development expenses and land carry costs
|
4,239
|
|
|
5,840
|
|
|
(1,601
|
)
|
|||
Total operating expenses
|
485,144
|
|
|
433,584
|
|
|
51,560
|
|
|||
|
|
|
|
|
|
||||||
Interest expense
|
(71,052
|
)
|
|
(75,385
|
)
|
|
4,333
|
|
|||
Interest and other income
|
7,894
|
|
|
4,358
|
|
|
3,536
|
|
|||
Gain on sales of real estate
|
105,230
|
|
|
2,340
|
|
|
102,890
|
|
|||
Loss on early extinguishment of debt
|
—
|
|
|
(258
|
)
|
|
258
|
|
|||
Equity in income of unconsolidated entities
|
1,633
|
|
|
2,697
|
|
|
(1,064
|
)
|
|||
Income tax benefit
|
217
|
|
|
363
|
|
|
(146
|
)
|
|||
Net income
|
$
|
200,004
|
|
|
$
|
78,643
|
|
|
$
|
121,361
|
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
Variance
|
||||||
|
|
(Dollars in thousands, except per square foot data)
|
||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|||
Same Properties revenues
|
|
|
|
|
|
|
||||||
Lease revenue, excluding lease termination revenue
|
|
$
|
454,144
|
|
|
$
|
445,237
|
|
|
$
|
8,907
|
|
Lease termination revenue
|
|
2,046
|
|
|
3,231
|
|
|
(1,185
|
)
|
|||
Other property revenue
|
|
4,764
|
|
|
4,698
|
|
|
66
|
|
|||
Same Properties total revenues
|
|
460,954
|
|
|
453,166
|
|
|
7,788
|
|
|||
Developed and redeveloped properties placed in service
|
|
23,655
|
|
|
7,958
|
|
|
15,697
|
|
|||
Wholesale data center
|
|
29,405
|
|
|
31,892
|
|
|
(2,487
|
)
|
|||
Dispositions
|
|
11,191
|
|
|
20,297
|
|
|
(9,106
|
)
|
|||
Other
|
|
2,258
|
|
|
3,940
|
|
|
(1,682
|
)
|
|||
|
|
527,463
|
|
|
517,253
|
|
|
10,210
|
|
|||
Property operating expenses
|
|
|
|
|
|
|
|
|
|
|||
Same Properties
|
|
(180,242
|
)
|
|
(179,988
|
)
|
|
(254
|
)
|
|||
Developed and redeveloped properties placed in service
|
|
(3,635
|
)
|
|
(1,429
|
)
|
|
(2,206
|
)
|
|||
Wholesale data center
|
|
(13,213
|
)
|
|
(16,342
|
)
|
|
3,129
|
|
|||
Dispositions
|
|
(977
|
)
|
|
(2,862
|
)
|
|
1,885
|
|
|||
Other
|
|
(76
|
)
|
|
(414
|
)
|
|
338
|
|
|||
|
|
(198,143
|
)
|
|
(201,035
|
)
|
|
2,892
|
|
|||
|
|
|
|
|
|
|
||||||
UJV NOI allocable to COPT
|
|
|
|
|
|
|
||||||
Same Properties
|
|
4,852
|
|
|
4,818
|
|
|
34
|
|
|||
Retained interests in newly-formed UJV
|
|
853
|
|
|
—
|
|
|
853
|
|
|||
|
|
5,705
|
|
|
4,818
|
|
|
887
|
|
|||
|
|
|
|
|
|
|
||||||
NOI from real estate operations
|
|
|
|
|
|
|
|
|
|
|||
Same Properties
|
|
285,564
|
|
|
277,996
|
|
|
7,568
|
|
|||
Developed and redeveloped properties placed in service
|
|
20,020
|
|
|
6,529
|
|
|
13,491
|
|
|||
Wholesale data center
|
|
16,192
|
|
|
15,550
|
|
|
642
|
|
|||
Dispositions, net of retained interests in newly formed UJV
|
|
11,067
|
|
|
17,435
|
|
|
(6,368
|
)
|
|||
Other
|
|
2,182
|
|
|
3,526
|
|
|
(1,344
|
)
|
|||
|
|
$
|
335,025
|
|
|
$
|
321,036
|
|
|
$
|
13,989
|
|
|
|
|
|
|
|
|
||||||
Same Properties NOI from real estate operations by segment
|
|
|
|
|
|
|
||||||
Defense/IT Locations
|
|
$
|
254,135
|
|
|
$
|
245,402
|
|
|
$
|
8,733
|
|
Regional Office
|
|
29,928
|
|
|
30,784
|
|
|
(856
|
)
|
|||
Other
|
|
1,501
|
|
|
1,810
|
|
|
(309
|
)
|
|||
|
|
$
|
285,564
|
|
|
$
|
277,996
|
|
|
$
|
7,568
|
|
|
|
|
|
|
|
|
||||||
Same Properties rent statistics
|
|
|
|
|
|
|
|
|
|
|||
Average occupancy rate
|
|
91.8
|
%
|
|
91.1
|
%
|
|
0.7
|
%
|
|||
Average straight-line rent per occupied square foot (1)
|
|
$
|
26.55
|
|
|
$
|
26.44
|
|
|
$
|
0.11
|
|
(1)
|
Includes minimum base rents, net of abatements, and lease incentives on a straight-line basis for the years set forth above.
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
Variance
|
||||||
|
|
(in thousands)
|
||||||||||
Construction contract and other service revenues
|
|
$
|
113,763
|
|
|
$
|
60,859
|
|
|
$
|
52,904
|
|
Construction contract and other service expenses
|
|
109,962
|
|
|
58,326
|
|
|
51,636
|
|
|||
NOI from service operations
|
|
$
|
3,801
|
|
|
$
|
2,533
|
|
|
$
|
1,268
|
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
Variance
|
||||||
|
|
(in thousands)
|
||||||||||
Interest on Unsecured Senior Notes
|
|
$
|
53,321
|
|
|
$
|
53,254
|
|
|
$
|
67
|
|
Interest on mortgage and other secured debt
|
|
7,908
|
|
|
6,933
|
|
|
975
|
|
|||
Interest on unsecured term debt
|
|
8,908
|
|
|
11,216
|
|
|
(2,308
|
)
|
|||
Amortization of deferred financing costs
|
|
2,136
|
|
|
1,954
|
|
|
182
|
|
|||
Interest expense recognized on interest rate swaps
|
|
(1,415
|
)
|
|
(407
|
)
|
|
(1,008
|
)
|
|||
Interest on Revolving Credit Facility
|
|
8,613
|
|
|
5,873
|
|
|
2,740
|
|
|||
Other interest
|
|
2,367
|
|
|
2,491
|
|
|
(124
|
)
|
|||
Capitalized interest
|
|
(10,786
|
)
|
|
(5,929
|
)
|
|
(4,857
|
)
|
|||
Interest expense
|
|
$
|
71,052
|
|
|
$
|
75,385
|
|
|
$
|
(4,333
|
)
|
|
For the Years Ended December 31,
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
(Dollars and shares in thousands, except per share data)
|
||||||||||||||||||
Net income
|
$
|
200,004
|
|
|
$
|
78,643
|
|
|
$
|
74,941
|
|
|
$
|
33,768
|
|
|
$
|
188,878
|
|
Add: Real estate-related depreciation and amortization
|
137,069
|
|
|
137,116
|
|
|
134,228
|
|
|
132,719
|
|
|
140,025
|
|
|||||
Add: Depreciation and amortization on UJV allocable to COPT
|
2,703
|
|
|
2,256
|
|
|
2,252
|
|
|
938
|
|
|
—
|
|
|||||
Add: Impairment losses on real estate
|
329
|
|
|
2,367
|
|
|
15,123
|
|
|
101,391
|
|
|
23,523
|
|
|||||
Less: Gain on sales of real estate
|
(105,230
|
)
|
|
(2,340
|
)
|
|
(9,890
|
)
|
|
(59,679
|
)
|
|
(68,047
|
)
|
|||||
Add: Income tax expense associated with FFO adjustments
|
—
|
|
|
—
|
|
|
800
|
|
|
—
|
|
|
—
|
|
|||||
FFO
|
234,875
|
|
|
218,042
|
|
|
217,454
|
|
|
209,137
|
|
|
284,379
|
|
|||||
Less: Noncontrolling interests-preferred units in the Operating Partnership
|
(564
|
)
|
|
(660
|
)
|
|
(660
|
)
|
|
(660
|
)
|
|
(660
|
)
|
|||||
Less: FFO allocable to other noncontrolling interests
|
(5,024
|
)
|
|
(3,768
|
)
|
|
(3,675
|
)
|
|
(4,020
|
)
|
|
(3,586
|
)
|
|||||
Less: Preferred share dividends
|
—
|
|
|
—
|
|
|
(6,219
|
)
|
|
(14,297
|
)
|
|
(14,210
|
)
|
|||||
Less: Issuance costs associated with redeemed preferred shares
|
—
|
|
|
—
|
|
|
(6,847
|
)
|
|
(17
|
)
|
|
—
|
|
|||||
Basic and diluted FFO allocable to share-based compensation awards
|
(905
|
)
|
|
(851
|
)
|
|
(814
|
)
|
|
(694
|
)
|
|
(1,041
|
)
|
|||||
Basic FFO available to common shares and common unit holders
|
228,382
|
|
|
212,763
|
|
|
199,239
|
|
|
189,449
|
|
|
264,882
|
|
|||||
Redeemable noncontrolling interests
|
132
|
|
|
1,540
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Diluted FFO available to common shares and common unit holders
|
228,514
|
|
|
214,303
|
|
|
199,239
|
|
|
189,449
|
|
|
264,882
|
|
|||||
Operating property acquisition costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,134
|
|
|||||
(Gain) loss on interest rate derivatives
|
—
|
|
|
—
|
|
|
(234
|
)
|
|
(378
|
)
|
|
386
|
|
|||||
Loss (gain) on early extinguishment of debt
|
—
|
|
|
258
|
|
|
513
|
|
|
1,110
|
|
|
(85,655
|
)
|
|||||
Issuance costs associated with redeemed preferred shares
|
—
|
|
|
—
|
|
|
6,847
|
|
|
17
|
|
|
—
|
|
|||||
Demolition costs on redevelopment and nonrecurring improvements
|
148
|
|
|
462
|
|
|
294
|
|
|
578
|
|
|
1,396
|
|
|||||
Non-comparable professional and legal expenses
|
681
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Executive transition costs
|
4
|
|
|
793
|
|
|
732
|
|
|
6,454
|
|
|
—
|
|
|||||
Add: Negative FFO of properties conveyed to extinguish debt in default
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,456
|
|
|||||
Diluted FFO comparability adjustments allocable to share-based compensation awards
|
(3
|
)
|
|
(16
|
)
|
|
(35
|
)
|
|
(73
|
)
|
|
225
|
|
|||||
Diluted FFO available to common share and common unit holders, as adjusted for comparability
|
$
|
229,344
|
|
|
$
|
215,800
|
|
|
$
|
207,356
|
|
|
$
|
197,157
|
|
|
$
|
195,824
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average common shares
|
111,196
|
|
|
103,946
|
|
|
98,969
|
|
|
94,502
|
|
|
93,914
|
|
|||||
Conversion of weighted average common units
|
1,299
|
|
|
2,468
|
|
|
3,362
|
|
|
3,633
|
|
|
3,692
|
|
|||||
Weighted average common shares/units - Basic FFO
|
112,495
|
|
|
106,414
|
|
|
102,331
|
|
|
98,135
|
|
|
97,606
|
|
|||||
Dilutive effect of share-based compensation awards
|
308
|
|
|
134
|
|
|
132
|
|
|
92
|
|
|
61
|
|
|||||
Dilutive effect of forward equity sale agreements
|
—
|
|
|
45
|
|
|
54
|
|
|
—
|
|
|
—
|
|
|||||
Redeemable noncontrolling interests
|
119
|
|
|
936
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Weighted average common shares/units - Diluted FFO
|
112,922
|
|
|
107,529
|
|
|
102,517
|
|
|
98,227
|
|
|
97,667
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted FFO per share
|
$
|
2.02
|
|
|
$
|
1.99
|
|
|
$
|
1.94
|
|
|
$
|
1.93
|
|
|
$
|
2.71
|
|
Diluted FFO per share, as adjusted for comparability
|
$
|
2.03
|
|
|
$
|
2.01
|
|
|
$
|
2.02
|
|
|
$
|
2.01
|
|
|
$
|
2.01
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Denominator for diluted EPS
|
111,623
|
|
|
104,125
|
|
|
99,155
|
|
|
94,594
|
|
|
97,667
|
|
|||||
Weighted average common units
|
1,299
|
|
|
2,468
|
|
|
3,362
|
|
|
3,633
|
|
|
—
|
|
|||||
Redeemable noncontrolling interests
|
—
|
|
|
936
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Denominator for diluted FFO per share measures
|
112,922
|
|
|
107,529
|
|
|
102,517
|
|
|
98,227
|
|
|
97,667
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Common share dividends - unrestricted shares and deferred shares
|
$
|
122,823
|
|
|
$
|
116,285
|
|
|
$
|
109,489
|
|
|
$
|
104,811
|
|
|
$
|
103,552
|
|
Common unit distributions - unrestricted units
|
1,405
|
|
|
2,498
|
|
|
3,661
|
|
|
3,990
|
|
|
4,046
|
|
|||||
Dividends and distributions for payout ratios
|
$
|
124,228
|
|
|
$
|
118,783
|
|
|
$
|
113,150
|
|
|
$
|
108,801
|
|
|
$
|
107,598
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
FFO payout ratio
|
52.9
|
%
|
|
54.5
|
%
|
|
52.0
|
%
|
|
52.0
|
%
|
|
37.8
|
%
|
|||||
Diluted FFO payout ratio
|
54.4
|
%
|
|
55.4
|
%
|
|
56.8
|
%
|
|
57.4
|
%
|
|
40.6
|
%
|
|||||
Diluted FFO payout ratio, as adjusted for comparability
|
54.2
|
%
|
|
55.0
|
%
|
|
54.6
|
%
|
|
55.2
|
%
|
|
54.9
|
%
|
|
For the Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
Variance
|
||||||
|
(in thousands)
|
||||||||||
Development and redevelopment
|
$
|
427,526
|
|
|
$
|
169,671
|
|
|
$
|
257,855
|
|
Tenant improvements on operating properties (1)
|
26,294
|
|
|
31,876
|
|
|
(5,582
|
)
|
|||
Capital improvements on operating properties
|
26,598
|
|
|
22,977
|
|
|
3,621
|
|
|||
|
$
|
480,418
|
|
|
$
|
224,524
|
|
|
$
|
255,894
|
|
•
|
dividends and/or distributions to equity holders of $124.8 million; offset in part by
|
•
|
net proceeds from the issuance of common shares (or units) of $46.4 million.
|
•
|
net proceeds from the issuance of common shares (or units) of $202.1 million; offset in part by
|
•
|
dividends and/or distributions to equity holders of $118.0 million; and
|
•
|
payments on a capital lease obligation of $15.4 million.
|
|
For the Years Ending December 31,
|
|
|
||||||||||||||||||||||||
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
2024
|
|
Thereafter
|
|
Total
|
||||||||||||||
Contractual obligations (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Debt (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Balloon payments due upon maturity
|
$
|
12,132
|
|
|
$
|
300,000
|
|
|
$
|
297,069
|
|
|
$
|
590,578
|
|
|
$
|
277,649
|
|
|
$
|
345,623
|
|
|
$
|
1,823,051
|
|
Scheduled principal payments (3)
|
4,024
|
|
|
3,955
|
|
|
4,272
|
|
|
3,252
|
|
|
2,034
|
|
|
2,219
|
|
|
19,756
|
|
|||||||
Interest on debt (3)(4)
|
72,754
|
|
|
65,754
|
|
|
60,004
|
|
|
37,281
|
|
|
18,406
|
|
|
9,997
|
|
|
264,196
|
|
|||||||
Development and redevelopment obligations (5)(6)
|
184,700
|
|
|
15,449
|
|
|
501
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
200,650
|
|
|||||||
Third-party construction obligations (6)(7)
|
16,546
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,546
|
|
|||||||
Tenant and other building improvements (3)(6)
|
32,393
|
|
|
19,871
|
|
|
6,500
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
58,764
|
|
|||||||
Finance leases (principal and interest) (3)
|
862
|
|
|
202
|
|
|
64
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,128
|
|
|||||||
Operating leases (3)
|
1,140
|
|
|
1,146
|
|
|
1,164
|
|
|
1,169
|
|
|
1,173
|
|
|
100,609
|
|
|
106,401
|
|
|||||||
Other obligations (3)
|
178
|
|
|
178
|
|
|
178
|
|
|
178
|
|
|
177
|
|
|
622
|
|
|
1,511
|
|
|||||||
Total contractual cash obligations
|
$
|
324,729
|
|
|
$
|
406,555
|
|
|
$
|
369,752
|
|
|
$
|
632,458
|
|
|
$
|
299,439
|
|
|
$
|
459,070
|
|
|
$
|
2,492,003
|
|
(1)
|
The contractual obligations set forth in this table exclude property operations contracts that may be terminated with notice of one month or less and also exclude accruals and payables incurred (with the exclusion of debt) and therefore reflected in our reported liabilities.
|
(2)
|
Represents scheduled principal amortization payments and maturities only and therefore excludes net debt discounts and deferred financing costs of $11.7 million. As of December 31, 2019, maturities included $177.0 million in 2023 that may be extended to 2024, subject to certain conditions.
|
(3)
|
We expect to pay these items using cash flow from operations.
|
(4)
|
Represents interest costs for our outstanding debt as of December 31, 2019 for the terms of such debt. For variable rate debt, the amounts reflected above used December 31, 2019 interest rates on variable rate debt in computing interest costs for the terms of such debt. We expect to pay these items using cash flow from operations.
|
(5)
|
Represents contractual obligations pertaining to new development and redevelopment activities.
|
(6)
|
Due to the long-term nature of certain development and construction contracts and leases included in these lines, the amounts reported in the table represent our estimate of the timing for the related obligations being payable.
|
(7)
|
Represents contractual obligations pertaining to projects for which we are acting as construction manager on behalf of unrelated parties who are our clients. We expect to be reimbursed in full for these costs by our clients.
|
|
For the Years Ending December 31,
|
|
|
||||||||||||||||||||||||
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
2024
|
|
Thereafter
|
|
Total
|
||||||||||||||
Debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Fixed rate debt (1)
|
$
|
3,718
|
|
|
$
|
303,875
|
|
|
$
|
4,033
|
|
|
$
|
416,590
|
|
|
$
|
279,443
|
|
|
$
|
337,442
|
|
|
$
|
1,345,101
|
|
Weighted average interest rate
|
3.96
|
%
|
|
3.70
|
%
|
|
3.98
|
%
|
|
3.70
|
%
|
|
5.16
|
%
|
|
4.87
|
%
|
|
4.30
|
%
|
|||||||
Variable rate debt (2)
|
$
|
12,438
|
|
|
$
|
80
|
|
|
$
|
297,308
|
|
|
$
|
177,240
|
|
|
$
|
240
|
|
|
$
|
10,400
|
|
|
$
|
497,706
|
|
Weighted average interest rate (3)
|
3.56
|
%
|
|
3.14
|
%
|
|
3.12
|
%
|
|
2.70
|
%
|
|
3.14
|
%
|
|
3.14
|
%
|
|
2.99
|
%
|
(1)
|
Represents principal maturities only and therefore excludes net discounts and deferred financing costs of $11.7 million.
|
(2)
|
As of December 31, 2019, maturities included $177.0 million in 2023 that may be extended to 2024, subject to certain conditions.
|
(3)
|
The amounts reflected above used interest rates as of December 31, 2019 for variable rate debt.
|
I.
|
Internal Control Over Financial Reporting
|
(a)
|
The following documents are filed as exhibits to this Form 10-K:
|
1.
|
Financial Statements. See “Index to consolidated financial statements” on page F-1 of this Annual Report on Form 10-K.
|
2.
|
Financial Statement Schedules. See “Index to consolidated financial statements” on page F-1 of this Annual Report on Form 10-K.
|
3.
|
See section below entitled “Exhibits.”
|
(b)
|
Exhibits. Refer to the Exhibit Index that follows. Unless otherwise noted, the file number of all documents incorporated by reference is 1-14023.
|
EXHIBIT
NO.
|
|
DESCRIPTION
|
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
EXHIBIT
NO.
|
|
DESCRIPTION
|
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
EXHIBIT
NO.
|
|
DESCRIPTION
|
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
EXHIBIT
NO.
|
|
DESCRIPTION
|
|
||
101.INS
|
|
XBRL Instance Document - The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document (filed herewith).
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document (filed herewith).
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document (filed herewith).
|
101.LAB
|
|
XBRL Extension Labels Linkbase (filed herewith).
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document (filed herewith).
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document (filed herewith).
|
104
|
|
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).
|
|
|
|
CORPORATE OFFICE PROPERTIES TRUST
|
|
|
|
|
Date:
|
February 19, 2020
|
By:
|
/s/ Stephen E. Budorick
|
|
|
|
Stephen E. Budorick
|
|
|
|
President and Chief Executive Officer
|
|
|
|
|
|
|
|
|
Date:
|
February 19, 2020
|
By:
|
/s/ Anthony Mifsud
|
|
|
|
Anthony Mifsud
|
|
|
|
Executive Vice President and Chief Financial Officer
|
Signatures
|
|
Title
|
Date
|
/s/ Stephen E. Budorick
|
|
President and Chief Executive Officer and Trustee
|
February 19, 2020
|
(Stephen E. Budorick)
|
|
|
|
/s/ Anthony Mifsud
|
|
Executive Vice President and Chief Financial
|
February 19, 2020
|
(Anthony Mifsud)
|
|
Officer (Principal Financial Officer)
|
|
/s/ Gregory J. Thor
|
|
Senior Vice President, Controller and Chief
|
February 19, 2020
|
(Gregory J. Thor)
|
|
Accounting Officer (Principal Accounting Officer)
|
|
/s/ Thomas F. Brady
|
|
Chairman of the Board and Trustee
|
February 19, 2020
|
(Thomas F. Brady)
|
|
|
|
/s/ Robert L. Denton
|
|
Trustee
|
February 19, 2020
|
( Robert L. Denton)
|
|
|
|
/s/ Philip L. Hawkins
|
|
Trustee
|
February 19, 2020
|
(Philip L. Hawkins)
|
|
|
|
/s/ David M. Jacobstein
|
|
Trustee
|
February 19, 2020
|
(David M. Jacobstein)
|
|
|
|
/s/ Steven D. Kesler
|
|
Trustee
|
February 19, 2020
|
(Steven D. Kesler)
|
|
|
|
/s/ C. Taylor Pickett
|
|
Trustee
|
February 19, 2020
|
(C. Taylor Pickett)
|
|
|
|
/s/ Lisa G. Trimberger
|
|
Trustee
|
February 19, 2020
|
(Lisa G. Trimberger)
|
|
|
|
|
|
|
CORPORATE OFFICE PROPERTIES, L.P.
|
|
|
|
By: Corporate Office Properties Trust,
|
|
|
|
its General Partner
|
|
|
|
|
Date:
|
February 19, 2020
|
By:
|
/s/ Stephen E. Budorick
|
|
|
|
Stephen E. Budorick
|
|
|
|
President and Chief Executive Officer
|
|
|
|
|
|
|
|
|
Date:
|
February 19, 2020
|
By:
|
/s/ Anthony Mifsud
|
|
|
|
Anthony Mifsud
|
|
|
|
Executive Vice President and Chief Financial Officer
|
Signatures
|
|
Title
|
Date
|
/s/ Stephen E. Budorick
|
|
President and Chief Executive Officer and Trustee
|
February 19, 2020
|
(Stephen E. Budorick)
|
|
|
|
/s/ Anthony Mifsud
|
|
Executive Vice President and Chief Financial
|
February 19, 2020
|
(Anthony Mifsud)
|
|
Officer (Principal Financial Officer)
|
|
/s/ Gregory J. Thor
|
|
Senior Vice President, Controller and Chief
|
February 19, 2020
|
(Gregory J. Thor)
|
|
Accounting Officer (Principal Accounting Officer)
|
|
/s/ Thomas F. Brady
|
|
Chairman of the Board and Trustee
|
February 19, 2020
|
(Thomas F. Brady)
|
|
|
|
/s/ Robert L. Denton
|
|
Trustee
|
February 19, 2020
|
( Robert L. Denton)
|
|
|
|
/s/ Philip L. Hawkins
|
|
Trustee
|
February 19, 2020
|
(Philip L. Hawkins)
|
|
|
|
/s/ David M. Jacobstein
|
|
Trustee
|
February 19, 2020
|
(David M. Jacobstein)
|
|
|
|
/s/ Steven D. Kesler
|
|
Trustee
|
February 19, 2020
|
(Steven D. Kesler)
|
|
|
|
/s/ C. Taylor Pickett
|
|
Trustee
|
February 19, 2020
|
(C. Taylor Pickett)
|
|
|
|
/s/ Lisa G. Trimberger
|
|
Trustee
|
February 19, 2020
|
(Lisa G. Trimberger)
|
|
|
|
Management’s Reports on Internal Control Over Financial Reporting
|
|
|
|
Reports of Independent Registered Public Accounting Firm
|
|
|
|
Consolidated Financial Statements of Corporate Office Properties Trust
|
|
|
|
Consolidated Financial Statements of Corporate Office Properties, L.P.
|
|
|
|
|
|
Financial Statements Schedule
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Assets
|
|
|
|
|
|
||
Properties, net:
|
|
|
|
|
|
||
Operating properties, net
|
$
|
2,772,647
|
|
|
$
|
2,847,265
|
|
Projects in development or held for future development
|
568,239
|
|
|
403,361
|
|
||
Total properties, net
|
3,340,886
|
|
|
3,250,626
|
|
||
Property - operating right-of-use assets
|
27,864
|
|
|
—
|
|
||
Property - finance right-of-use assets
|
40,458
|
|
|
—
|
|
||
Cash and cash equivalents
|
14,733
|
|
|
8,066
|
|
||
Investment in unconsolidated real estate joint ventures
|
51,949
|
|
|
39,845
|
|
||
Accounts receivable
|
35,444
|
|
|
26,277
|
|
||
Deferred rent receivable
|
87,736
|
|
|
89,350
|
|
||
Intangible assets on real estate acquisitions, net
|
27,392
|
|
|
43,470
|
|
||
Deferred leasing costs, net (accumulated amortization of $33,782 and $31,994, respectively)
|
58,392
|
|
|
50,191
|
|
||
Investing receivables
|
73,523
|
|
|
56,982
|
|
||
Prepaid expenses and other assets, net
|
96,076
|
|
|
91,198
|
|
||
Total assets
|
$
|
3,854,453
|
|
|
$
|
3,656,005
|
|
Liabilities and equity
|
|
|
|
|
|
||
Liabilities:
|
|
|
|
|
|
||
Debt, net
|
$
|
1,831,139
|
|
|
$
|
1,823,909
|
|
Accounts payable and accrued expenses
|
148,746
|
|
|
92,855
|
|
||
Rents received in advance and security deposits
|
33,620
|
|
|
30,079
|
|
||
Dividends and distributions payable
|
31,263
|
|
|
30,856
|
|
||
Deferred revenue associated with operating leases
|
7,361
|
|
|
9,125
|
|
||
Property - operating lease liabilities
|
17,317
|
|
|
—
|
|
||
Interest rate derivatives
|
25,682
|
|
|
5,459
|
|
||
Other liabilities
|
10,649
|
|
|
10,414
|
|
||
Total liabilities
|
2,105,777
|
|
|
2,002,697
|
|
||
Commitments and contingencies (Note 19)
|
|
|
|
|
|
||
Redeemable noncontrolling interests
|
29,431
|
|
|
26,260
|
|
||
Equity:
|
|
|
|
|
|
||
Corporate Office Properties Trust’s shareholders’ equity:
|
|
|
|
|
|
||
Common Shares of beneficial interest ($0.01 par value; 150,000,000 shares authorized; shares issued and outstanding of 112,068,705 at December 31, 2019 and 110,241,868 at December 31, 2018)
|
1,121
|
|
|
1,102
|
|
||
Additional paid-in capital
|
2,481,558
|
|
|
2,431,355
|
|
||
Cumulative distributions in excess of net income
|
(778,275
|
)
|
|
(846,808
|
)
|
||
Accumulated other comprehensive loss
|
(25,444
|
)
|
|
(238
|
)
|
||
Total Corporate Office Properties Trust’s shareholders’ equity
|
1,678,960
|
|
|
1,585,411
|
|
||
Noncontrolling interests in subsidiaries:
|
|
|
|
|
|
||
Common units in COPLP
|
19,597
|
|
|
19,168
|
|
||
Preferred units in COPLP
|
8,800
|
|
|
8,800
|
|
||
Other consolidated entities
|
11,888
|
|
|
13,669
|
|
||
Noncontrolling interests in subsidiaries
|
40,285
|
|
|
41,637
|
|
||
Total equity
|
1,719,245
|
|
|
1,627,048
|
|
||
Total liabilities, redeemable noncontrolling interests and equity
|
$
|
3,854,453
|
|
|
$
|
3,656,005
|
|
|
For the Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Revenues
|
|
|
|
|
|
||||||
Lease revenue
|
$
|
522,472
|
|
|
$
|
512,327
|
|
|
$
|
504,889
|
|
Other property revenue
|
4,991
|
|
|
4,926
|
|
|
5,091
|
|
|||
Construction contract and other service revenues
|
113,763
|
|
|
60,859
|
|
|
102,840
|
|
|||
Total revenues
|
641,226
|
|
|
578,112
|
|
|
612,820
|
|
|||
Operating expenses
|
|
|
|
|
|
|
|
||||
Property operating expenses
|
198,143
|
|
|
201,035
|
|
|
190,964
|
|
|||
Depreciation and amortization associated with real estate operations
|
137,069
|
|
|
137,116
|
|
|
134,228
|
|
|||
Construction contract and other service expenses
|
109,962
|
|
|
58,326
|
|
|
99,618
|
|
|||
Impairment losses
|
329
|
|
|
2,367
|
|
|
15,123
|
|
|||
General, administrative and leasing expenses
|
35,402
|
|
|
28,900
|
|
|
30,837
|
|
|||
Business development expenses and land carry costs
|
4,239
|
|
|
5,840
|
|
|
6,213
|
|
|||
Total operating expenses
|
485,144
|
|
|
433,584
|
|
|
476,983
|
|
|||
|
|
|
|
|
|
||||||
Interest expense
|
(71,052
|
)
|
|
(75,385
|
)
|
|
(76,983
|
)
|
|||
Interest and other income
|
7,894
|
|
|
4,358
|
|
|
6,318
|
|
|||
Gain on sales of real estate
|
105,230
|
|
|
2,340
|
|
|
9,890
|
|
|||
Loss on early extinguishment of debt
|
—
|
|
|
(258
|
)
|
|
(513
|
)
|
|||
Income before equity in income of unconsolidated entities and income taxes
|
198,154
|
|
|
75,583
|
|
|
74,549
|
|
|||
Equity in income of unconsolidated entities
|
1,633
|
|
|
2,697
|
|
|
1,490
|
|
|||
Income tax benefit (expense)
|
217
|
|
|
363
|
|
|
(1,098
|
)
|
|||
Net income
|
200,004
|
|
|
78,643
|
|
|
74,941
|
|
|||
Net income attributable to noncontrolling interests:
|
|
|
|
|
|
|
|
||||
Common units in COPLP
|
(2,363
|
)
|
|
(1,742
|
)
|
|
(1,890
|
)
|
|||
Preferred units in COPLP
|
(564
|
)
|
|
(660
|
)
|
|
(660
|
)
|
|||
Other consolidated entities
|
(5,385
|
)
|
|
(3,940
|
)
|
|
(3,646
|
)
|
|||
Net income attributable to COPT
|
191,692
|
|
|
72,301
|
|
|
68,745
|
|
|||
Preferred share dividends
|
—
|
|
|
—
|
|
|
(6,219
|
)
|
|||
Issuance costs associated with redeemed preferred shares
|
—
|
|
|
—
|
|
|
(6,847
|
)
|
|||
Net income attributable to COPT common shareholders
|
$
|
191,692
|
|
|
$
|
72,301
|
|
|
$
|
55,679
|
|
|
|
|
|
|
|
||||||
Earnings per common share: (1)
|
|
|
|
|
|
|
|
||||
Net income attributable to COPT common shareholders - basic
|
$
|
1.72
|
|
|
$
|
0.69
|
|
|
$
|
0.56
|
|
Net income attributable to COPT common shareholders - diluted
|
$
|
1.71
|
|
|
$
|
0.69
|
|
|
$
|
0.56
|
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
Net income
|
|
$
|
200,004
|
|
|
$
|
78,643
|
|
|
$
|
74,941
|
|
Other comprehensive (loss) income
|
|
|
|
|
|
|
|
|
||||
Unrealized (loss) gain on interest rate derivatives
|
|
(24,321
|
)
|
|
(2,373
|
)
|
|
684
|
|
|||
(Gain) loss on interest rate derivatives recognized in interest expense
|
|
(1,415
|
)
|
|
(407
|
)
|
|
3,304
|
|
|||
Equity in other comprehensive income of equity method investee
|
|
199
|
|
|
210
|
|
|
39
|
|
|||
Other comprehensive (loss) income
|
|
(25,537
|
)
|
|
(2,570
|
)
|
|
4,027
|
|
|||
Comprehensive income
|
|
174,467
|
|
|
76,073
|
|
|
78,968
|
|
|||
Comprehensive income attributable to noncontrolling interests
|
|
(7,981
|
)
|
|
(6,453
|
)
|
|
(6,325
|
)
|
|||
Comprehensive income attributable to COPT
|
|
$
|
166,486
|
|
|
$
|
69,620
|
|
|
$
|
72,643
|
|
|
Preferred
Shares
|
|
Common
Shares
|
|
Additional
Paid-in
Capital
|
|
Cumulative
Distributions in
Excess of Net
Income
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Noncontrolling
Interests
|
|
Total
|
||||||||||||||
Balance at December 31, 2016 (98,498,651 common shares outstanding)
|
$
|
172,500
|
|
|
$
|
985
|
|
|
$
|
2,116,581
|
|
|
$
|
(747,825
|
)
|
|
$
|
(1,731
|
)
|
|
$
|
72,267
|
|
|
$
|
1,612,777
|
|
Redemption of preferred shares (6,900,000 shares)
|
(172,500
|
)
|
|
—
|
|
|
6,847
|
|
|
(6,847
|
)
|
|
—
|
|
|
—
|
|
|
(172,500
|
)
|
|||||||
Conversion of common units to common shares (339,513 shares)
|
—
|
|
|
3
|
|
|
4,633
|
|
|
—
|
|
|
—
|
|
|
(4,636
|
)
|
|
—
|
|
|||||||
Common shares issued under forward equity sale agreements (1,678,913 shares)
|
—
|
|
|
17
|
|
|
49,927
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
49,944
|
|
|||||||
Common shares issued under at-the-market program (591,042 shares)
|
—
|
|
|
6
|
|
|
19,662
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19,668
|
|
|||||||
Exercise of share options (5,000 shares)
|
—
|
|
|
—
|
|
|
150
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
150
|
|
|||||||
Share-based compensation (179,180 shares issued, net of redemptions)
|
—
|
|
|
2
|
|
|
6,093
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,095
|
|
|||||||
Redemption of vested equity awards
|
—
|
|
|
—
|
|
|
(1,973
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,973
|
)
|
|||||||
Adjustments to noncontrolling interests resulting from changes in ownership of COPLP
|
—
|
|
|
—
|
|
|
(1,486
|
)
|
|
—
|
|
|
—
|
|
|
1,486
|
|
|
—
|
|
|||||||
Comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
68,745
|
|
|
3,898
|
|
|
3,987
|
|
|
76,630
|
|
|||||||
Dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(116,158
|
)
|
|
—
|
|
|
—
|
|
|
(116,158
|
)
|
|||||||
Distributions to owners of common and preferred units in COPLP
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,322
|
)
|
|
(4,322
|
)
|
|||||||
Distributions to noncontrolling interest in other consolidated entities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,617
|
)
|
|
(2,617
|
)
|
|||||||
Adjustment to arrive at fair value of redeemable noncontrolling interests
|
—
|
|
|
—
|
|
|
626
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
626
|
|
|||||||
Tax loss from share-based compensation
|
—
|
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(13
|
)
|
|||||||
Balance at December 31, 2017 (101,292,299 common shares outstanding)
|
—
|
|
|
1,013
|
|
|
2,201,047
|
|
|
(802,085
|
)
|
|
2,167
|
|
|
66,165
|
|
|
1,468,307
|
|
|||||||
Cumulative effect of accounting change for adoption of hedge accounting guidance
|
—
|
|
|
—
|
|
|
—
|
|
|
(276
|
)
|
|
276
|
|
|
—
|
|
|
—
|
|
|||||||
Balance at December 31, 2017, as adjusted
|
—
|
|
|
1,013
|
|
|
2,201,047
|
|
|
(802,361
|
)
|
|
2,443
|
|
|
66,165
|
|
|
1,468,307
|
|
|||||||
Conversion of common units to common shares (1,904,615 shares)
|
—
|
|
|
19
|
|
|
27,394
|
|
|
—
|
|
|
—
|
|
|
(27,413
|
)
|
|
—
|
|
|||||||
Redemption of common units
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(339
|
)
|
|
(339
|
)
|
|||||||
Common shares issued under forward equity sale agreements (5,907,000 shares)
|
—
|
|
|
59
|
|
|
172,235
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
172,294
|
|
|||||||
Common shares issued under at-the-market program (991,664 shares)
|
—
|
|
|
10
|
|
|
29,722
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29,732
|
|
|||||||
Share-based compensation (146,290 shares issued, net of redemptions)
|
—
|
|
|
1
|
|
|
6,962
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,963
|
|
|||||||
Redemption of vested equity awards
|
—
|
|
|
—
|
|
|
(1,702
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,702
|
)
|
|||||||
Adjustments to noncontrolling interests resulting from changes in ownership of COPLP
|
—
|
|
|
—
|
|
|
(2,466
|
)
|
|
—
|
|
|
—
|
|
|
2,466
|
|
|
—
|
|
|||||||
Comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
72,301
|
|
|
(2,681
|
)
|
|
3,930
|
|
|
73,550
|
|
|||||||
Dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(116,748
|
)
|
|
—
|
|
|
—
|
|
|
(116,748
|
)
|
|||||||
Distributions to owners of common and preferred units in COPLP
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,157
|
)
|
|
(3,157
|
)
|
|||||||
Distributions to noncontrolling interests in other consolidated entities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15
|
)
|
|
(15
|
)
|
|||||||
Adjustment to arrive at fair value of redeemable noncontrolling interests
|
—
|
|
|
—
|
|
|
(1,837
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,837
|
)
|
|||||||
Balance at December 31, 2018 (110,241,868 common shares outstanding)
|
—
|
|
|
1,102
|
|
|
2,431,355
|
|
|
(846,808
|
)
|
|
(238
|
)
|
|
41,637
|
|
|
1,627,048
|
|
|||||||
Conversion of common units to common shares (105,039 shares)
|
—
|
|
|
1
|
|
|
1,585
|
|
|
—
|
|
|
—
|
|
|
(1,586
|
)
|
|
—
|
|
|||||||
Redemption of common units
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(25
|
)
|
|
(25
|
)
|
|||||||
Common shares issued to the public (1,000 shares)
|
—
|
|
|
—
|
|
|
29
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29
|
|
|||||||
Common shares issued under forward equity sale agreements (1,614,087 shares)
|
—
|
|
|
16
|
|
|
46,438
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
46,454
|
|
|||||||
Share-based compensation (106,711 shares issued, net of redemptions)
|
—
|
|
|
2
|
|
|
6,131
|
|
|
—
|
|
|
—
|
|
|
1,323
|
|
|
7,456
|
|
|||||||
Redemption of vested equity awards
|
—
|
|
|
—
|
|
|
(2,064
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,064
|
)
|
|||||||
Adjustments to noncontrolling interests resulting from changes in ownership of COPLP
|
—
|
|
|
—
|
|
|
(167
|
)
|
|
—
|
|
|
—
|
|
|
167
|
|
|
—
|
|
|||||||
Comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
191,692
|
|
|
(25,206
|
)
|
|
4,146
|
|
|
170,632
|
|
|||||||
Dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(123,159
|
)
|
|
—
|
|
|
—
|
|
|
(123,159
|
)
|
|||||||
Distributions to owners of common and preferred units in COPLP
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,057
|
)
|
|
(2,057
|
)
|
|||||||
Contributions from noncontrolling interests in other consolidated entities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,570
|
|
|
2,570
|
|
|||||||
Distributions to noncontrolling interests in other consolidated entities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,890
|
)
|
|
(5,890
|
)
|
|||||||
Adjustment to arrive at fair value of redeemable noncontrolling interests
|
—
|
|
|
—
|
|
|
(1,749
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,749
|
)
|
|||||||
Balance at December 31, 2019 (112,068,705 common shares outstanding)
|
$
|
—
|
|
|
$
|
1,121
|
|
|
$
|
2,481,558
|
|
|
$
|
(778,275
|
)
|
|
$
|
(25,444
|
)
|
|
$
|
40,285
|
|
|
$
|
1,719,245
|
|
|
For the Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Cash flows from operating activities
|
|
|
|
|
|
|
|
||||
Revenues from real estate operations received
|
$
|
530,280
|
|
|
$
|
528,066
|
|
|
$
|
510,551
|
|
Construction contract and other service revenues received
|
94,677
|
|
|
33,579
|
|
|
102,531
|
|
|||
Property operating expenses paid
|
(196,611
|
)
|
|
(197,647
|
)
|
|
(186,577
|
)
|
|||
Construction contract and other service expenses paid
|
(96,789
|
)
|
|
(79,386
|
)
|
|
(82,707
|
)
|
|||
General, administrative, leasing, business development and land carry costs paid
|
(29,347
|
)
|
|
(27,006
|
)
|
|
(32,673
|
)
|
|||
Interest expense paid
|
(67,475
|
)
|
|
(72,460
|
)
|
|
(73,079
|
)
|
|||
Lease incentives paid
|
(9,482
|
)
|
|
(7,679
|
)
|
|
(9,725
|
)
|
|||
Income taxes paid
|
—
|
|
|
(21
|
)
|
|
(31
|
)
|
|||
Other
|
3,305
|
|
|
3,036
|
|
|
1,831
|
|
|||
Net cash provided by operating activities
|
228,558
|
|
|
180,482
|
|
|
230,121
|
|
|||
Cash flows from investing activities
|
|
|
|
|
|
|
|
||||
Development and redevelopment of properties
|
(394,444
|
)
|
|
(159,994
|
)
|
|
(200,504
|
)
|
|||
Tenant improvements on operating properties
|
(23,809
|
)
|
|
(35,098
|
)
|
|
(33,409
|
)
|
|||
Other capital improvements on operating properties
|
(24,659
|
)
|
|
(24,223
|
)
|
|
(22,882
|
)
|
|||
Proceeds from property dispositions
|
|
|
|
|
|
||||||
Distribution from unconsolidated real estate joint venture following contribution of properties
|
201,499
|
|
|
—
|
|
|
—
|
|
|||
Sale of properties
|
108,128
|
|
|
—
|
|
|
180,839
|
|
|||
Distributions from unconsolidated real estate joint ventures
|
22,426
|
|
|
1,942
|
|
|
1,874
|
|
|||
Investing receivables funded
|
(11,180
|
)
|
|
(97
|
)
|
|
(588
|
)
|
|||
Leasing costs paid
|
(16,825
|
)
|
|
(10,926
|
)
|
|
(14,581
|
)
|
|||
Other
|
849
|
|
|
(4,522
|
)
|
|
(112
|
)
|
|||
Net cash used in investing activities
|
(138,015
|
)
|
|
(232,918
|
)
|
|
(89,363
|
)
|
|||
Cash flows from financing activities
|
|
|
|
|
|
|
|
||||
Proceeds from debt
|
|
|
|
|
|
||||||
Revolving Credit Facility
|
409,000
|
|
|
381,000
|
|
|
352,000
|
|
|||
Other debt proceeds
|
43,615
|
|
|
13,406
|
|
|
—
|
|
|||
Repayments of debt
|
|
|
|
|
|
||||||
Revolving Credit Facility
|
(445,000
|
)
|
|
(294,000
|
)
|
|
(226,000
|
)
|
|||
Scheduled principal amortization
|
(4,310
|
)
|
|
(4,240
|
)
|
|
(4,062
|
)
|
|||
Other debt repayments
|
(77
|
)
|
|
(100,000
|
)
|
|
(200,000
|
)
|
|||
Deferred financing costs paid
|
(448
|
)
|
|
(8,292
|
)
|
|
(500
|
)
|
|||
Payments on finance lease liabilities
|
(223
|
)
|
|
(15,379
|
)
|
|
—
|
|
|||
Net proceeds from issuance of common shares
|
46,415
|
|
|
202,065
|
|
|
69,534
|
|
|||
Redemption of preferred shares
|
—
|
|
|
—
|
|
|
(199,083
|
)
|
|||
Common share dividends paid
|
(122,657
|
)
|
|
(114,286
|
)
|
|
(109,174
|
)
|
|||
Preferred share dividends paid
|
—
|
|
|
—
|
|
|
(9,305
|
)
|
|||
Distributions paid to noncontrolling interests in COPLP
|
(2,166
|
)
|
|
(3,699
|
)
|
|
(4,426
|
)
|
|||
Distributions paid to redeemable noncontrolling interests
|
(1,659
|
)
|
|
(1,382
|
)
|
|
(8,215
|
)
|
|||
Distributions paid to noncontrolling interests in other consolidated entities
|
(5,890
|
)
|
|
(16
|
)
|
|
(2,617
|
)
|
|||
Redemption of vested equity awards
|
(2,064
|
)
|
|
(1,702
|
)
|
|
(1,973
|
)
|
|||
Other
|
1,101
|
|
|
(3,920
|
)
|
|
5,275
|
|
|||
Net cash (used in) provided by financing activities
|
(84,363
|
)
|
|
49,555
|
|
|
(338,546
|
)
|
|||
Net increase (decrease) in cash and cash equivalents and restricted cash
|
6,180
|
|
|
(2,881
|
)
|
|
(197,788
|
)
|
|||
Cash and cash equivalents and restricted cash
|
|
|
|
|
|
|
|
||||
Beginning of year
|
11,950
|
|
|
14,831
|
|
|
212,619
|
|
|||
End of year
|
$
|
18,130
|
|
|
$
|
11,950
|
|
|
$
|
14,831
|
|
|
For the Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Reconciliation of net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
||||
Net income
|
$
|
200,004
|
|
|
$
|
78,643
|
|
|
$
|
74,941
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
||||
Depreciation and other amortization
|
138,903
|
|
|
139,063
|
|
|
136,501
|
|
|||
Impairment losses
|
329
|
|
|
2,367
|
|
|
15,116
|
|
|||
Amortization of deferred financing costs and net debt discounts
|
3,639
|
|
|
3,393
|
|
|
4,307
|
|
|||
Increase in deferred rent receivable
|
(4,091
|
)
|
|
(4,621
|
)
|
|
(2,651
|
)
|
|||
Gain on sales of real estate
|
(105,230
|
)
|
|
(2,340
|
)
|
|
(9,890
|
)
|
|||
Share-based compensation
|
6,714
|
|
|
6,376
|
|
|
5,615
|
|
|||
Other
|
(6,022
|
)
|
|
(2,733
|
)
|
|
(4,216
|
)
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|||||
(Increase) decrease in accounts receivable
|
(7,141
|
)
|
|
5,673
|
|
|
2,783
|
|
|||
(Increase) decrease in prepaid expenses and other assets, net
|
(22,457
|
)
|
|
(987
|
)
|
|
7,219
|
|
|||
Increase (decrease) in accounts payable, accrued expenses and other liabilities
|
20,369
|
|
|
(49,179
|
)
|
|
4,309
|
|
|||
Increase (decrease) in rents received in advance and security deposits
|
3,541
|
|
|
4,827
|
|
|
(3,913
|
)
|
|||
Net cash provided by operating activities
|
$
|
228,558
|
|
|
$
|
180,482
|
|
|
$
|
230,121
|
|
Reconciliation of cash and cash equivalents and restricted cash:
|
|
|
|
|
|
||||||
Cash and cash equivalents at beginning of period
|
$
|
8,066
|
|
|
$
|
12,261
|
|
|
$
|
209,863
|
|
Restricted cash at beginning of period
|
3,884
|
|
|
2,570
|
|
|
2,756
|
|
|||
Cash and cash equivalents and restricted cash at beginning of period
|
$
|
11,950
|
|
|
$
|
14,831
|
|
|
$
|
212,619
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents at end of period
|
$
|
14,733
|
|
|
$
|
8,066
|
|
|
$
|
12,261
|
|
Restricted cash at end of period
|
3,397
|
|
|
3,884
|
|
|
2,570
|
|
|||
Cash and cash equivalents and restricted cash at end of period
|
$
|
18,130
|
|
|
$
|
11,950
|
|
|
$
|
14,831
|
|
Supplemental schedule of non-cash investing and financing activities:
|
|
|
|
|
|
|
|
||||
Increase (decrease) in accrued capital improvements, leasing and other investing activity costs
|
$
|
35,913
|
|
|
$
|
6,570
|
|
|
$
|
(10,654
|
)
|
Finance right-of-use asset contributed by noncontrolling interest in joint venture
|
$
|
2,570
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Operating right-of-use assets obtained in exchange for operating lease liabilities
|
$
|
840
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Finance right-of-use asset obtained in exchange for finance lease liability
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
16,127
|
|
Non-cash changes from property dispositions:
|
|
|
|
|
|
||||||
Contribution of properties to unconsolidated real estate joint venture
|
$
|
158,542
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Investment in unconsolidated real estate joint venture retained in disposition
|
$
|
34,506
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Non-cash changes from recognition of property sale previously accounted for as financing arrangement:
|
|
|
|
|
|
||||||
Decrease in assets held for sale, net
|
$
|
—
|
|
|
$
|
(42,226
|
)
|
|
$
|
—
|
|
Decrease in deferred property sale
|
$
|
—
|
|
|
$
|
43,377
|
|
|
$
|
—
|
|
(Decrease) increase in fair value of derivatives applied to accumulated other comprehensive income and noncontrolling interests
|
$
|
(25,817
|
)
|
|
$
|
2,915
|
|
|
$
|
3,845
|
|
Equity in other comprehensive income of an equity method investee
|
$
|
199
|
|
|
$
|
210
|
|
|
$
|
39
|
|
Dividends/distributions payable
|
$
|
31,263
|
|
|
$
|
30,856
|
|
|
$
|
28,921
|
|
Decrease in noncontrolling interests and increase in shareholders’ equity in connection with the conversion of common units into common shares
|
$
|
1,586
|
|
|
$
|
27,413
|
|
|
$
|
4,636
|
|
Adjustments to noncontrolling interests resulting from changes in COPLP ownership
|
$
|
167
|
|
|
$
|
2,466
|
|
|
$
|
1,486
|
|
Increase (decrease) in redeemable noncontrolling interests and decrease (increase) in equity to carry redeemable noncontrolling interests at fair value
|
$
|
1,749
|
|
|
$
|
1,837
|
|
|
$
|
(626
|
)
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Assets
|
|
|
|
|
|
||
Properties, net:
|
|
|
|
|
|
||
Operating properties, net
|
$
|
2,772,647
|
|
|
$
|
2,847,265
|
|
Projects in development or held for future development
|
568,239
|
|
|
403,361
|
|
||
Total properties, net
|
3,340,886
|
|
|
3,250,626
|
|
||
Property - operating right-of-use assets
|
27,864
|
|
|
—
|
|
||
Property - finance right-of-use assets
|
40,458
|
|
|
—
|
|
||
Cash and cash equivalents
|
14,733
|
|
|
8,066
|
|
||
Investment in unconsolidated real estate joint ventures
|
51,949
|
|
|
39,845
|
|
||
Accounts receivable
|
35,444
|
|
|
26,277
|
|
||
Deferred rent receivable
|
87,736
|
|
|
89,350
|
|
||
Intangible assets on real estate acquisitions, net
|
27,392
|
|
|
43,470
|
|
||
Deferred leasing costs, net (accumulated amortization of $33,782 and $31,994, respectively)
|
58,392
|
|
|
50,191
|
|
||
Investing receivables
|
73,523
|
|
|
56,982
|
|
||
Prepaid expenses and other assets, net
|
93,016
|
|
|
87,330
|
|
||
Total assets
|
$
|
3,851,393
|
|
|
$
|
3,652,137
|
|
Liabilities and equity
|
|
|
|
|
|
||
Liabilities:
|
|
|
|
|
|
||
Debt, net
|
$
|
1,831,139
|
|
|
$
|
1,823,909
|
|
Accounts payable and accrued expenses
|
148,746
|
|
|
92,855
|
|
||
Rents received in advance and security deposits
|
33,620
|
|
|
30,079
|
|
||
Distributions payable
|
31,263
|
|
|
30,856
|
|
||
Deferred revenue associated with operating leases
|
7,361
|
|
|
9,125
|
|
||
Property - operating lease liabilities
|
17,317
|
|
|
—
|
|
||
Interest rate derivatives
|
25,682
|
|
|
5,459
|
|
||
Other liabilities
|
7,589
|
|
|
6,546
|
|
||
Total liabilities
|
2,102,717
|
|
|
1,998,829
|
|
||
Commitments and contingencies (Note 19)
|
|
|
|
|
|
||
Redeemable noncontrolling interests
|
29,431
|
|
|
26,260
|
|
||
Equity:
|
|
|
|
||||
Corporate Office Properties, L.P.’s equity:
|
|
|
|
||||
Preferred units held by limited partner, 352,000 preferred units outstanding at December 31, 2019 and 2018
|
8,800
|
|
|
8,800
|
|
||
Common units, 112,068,705 and 110,241,868 held by the general partner and 1,482,425 and 1,332,886 held by limited partners at December 31, 2019 and 2018, respectively
|
1,724,159
|
|
|
1,604,655
|
|
||
Accumulated other comprehensive loss
|
(25,648
|
)
|
|
(121
|
)
|
||
Total Corporate Office Properties, L.P.’s equity
|
1,707,311
|
|
|
1,613,334
|
|
||
Noncontrolling interests in subsidiaries
|
11,934
|
|
|
13,714
|
|
||
Total equity
|
1,719,245
|
|
|
1,627,048
|
|
||
Total liabilities, redeemable noncontrolling interests and equity
|
$
|
3,851,393
|
|
|
$
|
3,652,137
|
|
|
For the Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Revenues
|
|
|
|
|
|
||||||
Lease revenue
|
$
|
522,472
|
|
|
$
|
512,327
|
|
|
$
|
504,889
|
|
Other property revenue
|
4,991
|
|
|
4,926
|
|
|
5,091
|
|
|||
Construction contract and other service revenues
|
113,763
|
|
|
60,859
|
|
|
102,840
|
|
|||
Total revenues
|
641,226
|
|
|
578,112
|
|
|
612,820
|
|
|||
Operating expenses
|
|
|
|
|
|
|
|
||||
Property operating expenses
|
198,143
|
|
|
201,035
|
|
|
190,964
|
|
|||
Depreciation and amortization associated with real estate operations
|
137,069
|
|
|
137,116
|
|
|
134,228
|
|
|||
Construction contract and other service expenses
|
109,962
|
|
|
58,326
|
|
|
99,618
|
|
|||
Impairment losses
|
329
|
|
|
2,367
|
|
|
15,123
|
|
|||
General, administrative and leasing expenses
|
35,402
|
|
|
28,900
|
|
|
30,837
|
|
|||
Business development expenses and land carry costs
|
4,239
|
|
|
5,840
|
|
|
6,213
|
|
|||
Total operating expenses
|
485,144
|
|
|
433,584
|
|
|
476,983
|
|
|||
|
|
|
|
|
|
||||||
Interest expense
|
(71,052
|
)
|
|
(75,385
|
)
|
|
(76,983
|
)
|
|||
Interest and other income
|
7,894
|
|
|
4,358
|
|
|
6,318
|
|
|||
Gain on sales of real estate
|
105,230
|
|
|
2,340
|
|
|
9,890
|
|
|||
Loss on early extinguishment of debt
|
—
|
|
|
(258
|
)
|
|
(513
|
)
|
|||
Income before equity in income of unconsolidated entities and income taxes
|
198,154
|
|
|
75,583
|
|
|
74,549
|
|
|||
Equity in income of unconsolidated entities
|
1,633
|
|
|
2,697
|
|
|
1,490
|
|
|||
Income tax benefit (expense)
|
217
|
|
|
363
|
|
|
(1,098
|
)
|
|||
Net income
|
200,004
|
|
|
78,643
|
|
|
74,941
|
|
|||
Net income attributable to noncontrolling interests in consolidated entities
|
(5,385
|
)
|
|
(3,940
|
)
|
|
(3,646
|
)
|
|||
Net income attributable to COPLP
|
194,619
|
|
|
74,703
|
|
|
71,295
|
|
|||
Preferred unit distributions
|
(564
|
)
|
|
(660
|
)
|
|
(6,879
|
)
|
|||
Issuance costs associated with redeemed preferred units
|
—
|
|
|
—
|
|
|
(6,847
|
)
|
|||
Net income attributable to COPLP common unitholders
|
$
|
194,055
|
|
|
$
|
74,043
|
|
|
$
|
57,569
|
|
|
|
|
|
|
|
||||||
Earnings per common unit: (1)
|
|
|
|
|
|
|
|
||||
Net income attributable to COPLP common unitholders - basic
|
$
|
1.72
|
|
|
$
|
0.69
|
|
|
$
|
0.56
|
|
Net income attributable to COPLP common unitholders - diluted
|
$
|
1.71
|
|
|
$
|
0.69
|
|
|
$
|
0.56
|
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
Net income
|
|
$
|
200,004
|
|
|
$
|
78,643
|
|
|
$
|
74,941
|
|
Other comprehensive (loss) income
|
|
|
|
|
|
|
||||||
Unrealized (loss) gain on interest rate derivatives
|
|
(24,321
|
)
|
|
(2,373
|
)
|
|
684
|
|
|||
(Gain) loss on interest rate derivatives recognized in interest expense
|
|
(1,415
|
)
|
|
(407
|
)
|
|
3,304
|
|
|||
Equity in other comprehensive income of equity method investee
|
|
199
|
|
|
210
|
|
|
39
|
|
|||
Other comprehensive (loss) income
|
|
(25,537
|
)
|
|
(2,570
|
)
|
|
4,027
|
|
|||
Comprehensive income
|
|
174,467
|
|
|
76,073
|
|
|
78,968
|
|
|||
Comprehensive income attributable to noncontrolling interests
|
|
(5,375
|
)
|
|
(3,940
|
)
|
|
(3,646
|
)
|
|||
Comprehensive income attributable to COPLP
|
|
$
|
169,092
|
|
|
$
|
72,133
|
|
|
$
|
75,322
|
|
|
Limited Partner Preferred Units
|
|
General Partner
Preferred Units
|
|
Common Units
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Noncontrolling Interests in Subsidiaries
|
|
Total Equity
|
|||||||||||||||||||||
|
Units
|
|
Amount
|
|
Units
|
|
Amount
|
|
Units
|
|
Amount
|
|
|
|
||||||||||||||||||
Balance at December 31, 2016
|
352,000
|
|
|
$
|
8,800
|
|
|
6,900,000
|
|
|
$
|
172,500
|
|
|
102,089,042
|
|
|
$
|
1,419,710
|
|
|
$
|
(1,854
|
)
|
|
$
|
13,621
|
|
|
$
|
1,612,777
|
|
Reclassification of preferred units to be redeemed to liability
|
—
|
|
|
—
|
|
|
(6,900,000
|
)
|
|
(172,500
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(172,500
|
)
|
||||||
Issuance of common units resulting from public issuance of common shares
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,678,913
|
|
|
49,944
|
|
|
—
|
|
|
—
|
|
|
49,944
|
|
||||||
Issuance of common units resulting from common shares issued under COPT at-the-market program
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
591,042
|
|
|
19,668
|
|
|
—
|
|
|
—
|
|
|
19,668
|
|
||||||
Issuance of common units resulting from exercise of share options
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,000
|
|
|
150
|
|
|
—
|
|
|
—
|
|
|
150
|
|
||||||
Share-based compensation (units net of redemption)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
179,180
|
|
|
6,095
|
|
|
—
|
|
|
—
|
|
|
6,095
|
|
||||||
Redemptions of vested equity awards
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,973
|
)
|
|
—
|
|
|
—
|
|
|
(1,973
|
)
|
||||||
Comprehensive income
|
—
|
|
|
660
|
|
|
—
|
|
|
6,219
|
|
|
—
|
|
|
64,416
|
|
|
4,027
|
|
|
1,308
|
|
|
76,630
|
|
||||||
Distributions to owners of common and preferred units
|
—
|
|
|
(660
|
)
|
|
—
|
|
|
(6,219
|
)
|
|
—
|
|
|
(113,601
|
)
|
|
—
|
|
|
—
|
|
|
(120,480
|
)
|
||||||
Distributions to noncontrolling interests in subsidiaries
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,617
|
)
|
|
(2,617
|
)
|
||||||
Adjustment to arrive at fair value of redeemable noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
626
|
|
|
—
|
|
|
—
|
|
|
626
|
|
||||||
Tax loss from share-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
|
—
|
|
|
(13
|
)
|
||||||
Balance at December 31, 2017
|
352,000
|
|
|
8,800
|
|
|
—
|
|
|
—
|
|
|
104,543,177
|
|
|
1,445,022
|
|
|
2,173
|
|
|
12,312
|
|
|
1,468,307
|
|
||||||
Cumulative effect of accounting change for adoption of hedge accounting guidance
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(276
|
)
|
|
276
|
|
|
—
|
|
|
—
|
|
||||||
Balance at December 31, 2017, as adjusted
|
352,000
|
|
|
8,800
|
|
|
—
|
|
|
—
|
|
|
104,543,177
|
|
|
1,444,746
|
|
|
2,449
|
|
|
12,312
|
|
|
1,468,307
|
|
||||||
Redemption of common units
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(13,377
|
)
|
|
(339
|
)
|
|
—
|
|
|
—
|
|
|
(339
|
)
|
||||||
Issuance of common units resulting from common shares issued under COPT forward equity sale agreements
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,907,000
|
|
|
172,294
|
|
|
—
|
|
|
—
|
|
|
172,294
|
|
||||||
Issuance of common units resulting from common shares issued under COPT at-the-market program
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
991,664
|
|
|
29,732
|
|
|
—
|
|
|
—
|
|
|
29,732
|
|
||||||
Share-based compensation (units net of redemption)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
146,290
|
|
|
6,963
|
|
|
—
|
|
|
—
|
|
|
6,963
|
|
||||||
Redemptions of vested equity awards
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,702
|
)
|
|
—
|
|
|
—
|
|
|
(1,702
|
)
|
||||||
Comprehensive income
|
—
|
|
|
660
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
74,043
|
|
|
(2,570
|
)
|
|
1,417
|
|
|
73,550
|
|
||||||
Distributions to owners of common and preferred units
|
—
|
|
|
(660
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(119,245
|
)
|
|
—
|
|
|
—
|
|
|
(119,905
|
)
|
||||||
Distributions to noncontrolling interests in subsidiaries
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15
|
)
|
|
(15
|
)
|
||||||
Adjustment to arrive at fair value of redeemable noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,837
|
)
|
|
—
|
|
|
—
|
|
|
(1,837
|
)
|
||||||
Balance at December 31, 2018
|
352,000
|
|
|
8,800
|
|
|
—
|
|
|
—
|
|
|
111,574,754
|
|
|
1,604,655
|
|
|
(121
|
)
|
|
13,714
|
|
|
1,627,048
|
|
||||||
Redemption of common units
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(924
|
)
|
|
(25
|
)
|
|
—
|
|
|
—
|
|
|
(25
|
)
|
||||||
Issuance of common units resulting from public issuance of common shares
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,000
|
|
|
29
|
|
|
—
|
|
|
—
|
|
|
29
|
|
||||||
Issuance of common units resulting from common shares issued under COPT forward equity sale agreements
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,614,087
|
|
|
46,454
|
|
|
—
|
|
|
—
|
|
|
46,454
|
|
||||||
Share-based compensation (units net of redemption)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
362,213
|
|
|
7,456
|
|
|
—
|
|
|
—
|
|
|
7,456
|
|
||||||
Redemptions of vested equity awards
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,064
|
)
|
|
—
|
|
|
—
|
|
|
(2,064
|
)
|
||||||
Comprehensive income
|
—
|
|
|
564
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
194,055
|
|
|
(25,527
|
)
|
|
1,540
|
|
|
170,632
|
|
||||||
Distributions to owners of common and preferred units
|
—
|
|
|
(564
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(124,652
|
)
|
|
—
|
|
|
—
|
|
|
(125,216
|
)
|
||||||
Contributions from noncontrolling interests in subsidiaries
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,570
|
|
|
2,570
|
|
||||||
Distributions to noncontrolling interests in subsidiaries
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,890
|
)
|
|
(5,890
|
)
|
||||||
Adjustment to arrive at fair value of redeemable noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,749
|
)
|
|
—
|
|
|
—
|
|
|
(1,749
|
)
|
||||||
Balance at December 31, 2019
|
352,000
|
|
|
$
|
8,800
|
|
|
—
|
|
|
$
|
—
|
|
|
113,551,130
|
|
|
$
|
1,724,159
|
|
|
$
|
(25,648
|
)
|
|
$
|
11,934
|
|
|
$
|
1,719,245
|
|
|
For the Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Cash flows from operating activities
|
|
|
|
|
|
|
|
||||
Revenues from real estate operations received
|
$
|
530,280
|
|
|
$
|
528,066
|
|
|
$
|
510,551
|
|
Construction contract and other service revenues received
|
94,677
|
|
|
33,579
|
|
|
102,531
|
|
|||
Property operating expenses paid
|
(196,611
|
)
|
|
(197,647
|
)
|
|
(186,577
|
)
|
|||
Construction contract and other service expenses paid
|
(96,789
|
)
|
|
(79,386
|
)
|
|
(82,707
|
)
|
|||
General, administrative, leasing, business development and land carry costs paid
|
(29,347
|
)
|
|
(27,006
|
)
|
|
(32,673
|
)
|
|||
Interest expense paid
|
(67,475
|
)
|
|
(72,460
|
)
|
|
(73,079
|
)
|
|||
Lease incentives paid
|
(9,482
|
)
|
|
(7,679
|
)
|
|
(9,725
|
)
|
|||
Income taxes paid
|
—
|
|
|
(21
|
)
|
|
(31
|
)
|
|||
Other
|
3,305
|
|
|
3,036
|
|
|
1,831
|
|
|||
Net cash provided by operating activities
|
228,558
|
|
|
180,482
|
|
|
230,121
|
|
|||
Cash flows from investing activities
|
|
|
|
|
|
|
|
||||
Development and redevelopment of properties
|
(394,444
|
)
|
|
(159,994
|
)
|
|
(200,504
|
)
|
|||
Tenant improvements on operating properties
|
(23,809
|
)
|
|
(35,098
|
)
|
|
(33,409
|
)
|
|||
Other capital improvements on operating properties
|
(24,659
|
)
|
|
(24,223
|
)
|
|
(22,882
|
)
|
|||
Proceeds from property dispositions
|
|
|
|
|
|
||||||
Distribution from unconsolidated real estate joint venture following contribution of properties
|
201,499
|
|
|
—
|
|
|
—
|
|
|||
Sale of properties
|
108,128
|
|
|
—
|
|
|
180,839
|
|
|||
Distributions from unconsolidated real estate joint ventures
|
22,426
|
|
|
1,942
|
|
|
1,874
|
|
|||
Investing receivables funded
|
(11,180
|
)
|
|
(97
|
)
|
|
(588
|
)
|
|||
Leasing costs paid
|
(16,825
|
)
|
|
(10,926
|
)
|
|
(14,581
|
)
|
|||
Other
|
849
|
|
|
(4,522
|
)
|
|
(112
|
)
|
|||
Net cash used in investing activities
|
(138,015
|
)
|
|
(232,918
|
)
|
|
(89,363
|
)
|
|||
Cash flows from financing activities
|
|
|
|
|
|
|
|
||||
Proceeds from debt
|
|
|
|
|
|
||||||
Revolving Credit Facility
|
409,000
|
|
|
381,000
|
|
|
352,000
|
|
|||
Other debt proceeds
|
43,615
|
|
|
13,406
|
|
|
—
|
|
|||
Repayments of debt
|
|
|
|
|
|
||||||
Revolving Credit Facility
|
(445,000
|
)
|
|
(294,000
|
)
|
|
(226,000
|
)
|
|||
Scheduled principal amortization
|
(4,310
|
)
|
|
(4,240
|
)
|
|
(4,062
|
)
|
|||
Other debt repayments
|
(77
|
)
|
|
(100,000
|
)
|
|
(200,000
|
)
|
|||
Deferred financing costs paid
|
(448
|
)
|
|
(8,292
|
)
|
|
(500
|
)
|
|||
Payments on finance lease liabilities
|
(223
|
)
|
|
(15,379
|
)
|
|
—
|
|
|||
Net proceeds from issuance of common units
|
46,415
|
|
|
202,065
|
|
|
69,534
|
|
|||
Redemption of preferred units
|
—
|
|
|
—
|
|
|
(199,083
|
)
|
|||
Common unit distributions paid
|
(124,171
|
)
|
|
(117,325
|
)
|
|
(112,940
|
)
|
|||
Preferred unit distributions paid
|
(652
|
)
|
|
(660
|
)
|
|
(9,965
|
)
|
|||
Distributions paid to redeemable noncontrolling interests
|
(1,659
|
)
|
|
(1,382
|
)
|
|
(8,215
|
)
|
|||
Distributions paid to noncontrolling interests in other consolidated entities
|
(5,890
|
)
|
|
(16
|
)
|
|
(2,617
|
)
|
|||
Redemption of vested equity awards
|
(2,064
|
)
|
|
(1,702
|
)
|
|
(1,973
|
)
|
|||
Other
|
1,101
|
|
|
(3,920
|
)
|
|
5,275
|
|
|||
Net cash (used in) provided by financing activities
|
(84,363
|
)
|
|
49,555
|
|
|
(338,546
|
)
|
|||
Net increase (decrease) in cash and cash equivalents and restricted cash
|
6,180
|
|
|
(2,881
|
)
|
|
(197,788
|
)
|
|||
Cash and cash equivalents and restricted cash
|
|
|
|
|
|
|
|
||||
Beginning of year
|
11,950
|
|
|
14,831
|
|
|
212,619
|
|
|||
End of year
|
$
|
18,130
|
|
|
$
|
11,950
|
|
|
$
|
14,831
|
|
|
For the Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Reconciliation of net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
||||
Net income
|
$
|
200,004
|
|
|
$
|
78,643
|
|
|
$
|
74,941
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
||||
Depreciation and other amortization
|
138,903
|
|
|
139,063
|
|
|
136,501
|
|
|||
Impairment losses
|
329
|
|
|
2,367
|
|
|
15,116
|
|
|||
Amortization of deferred financing costs and net debt discounts
|
3,639
|
|
|
3,393
|
|
|
4,307
|
|
|||
Increase in deferred rent receivable
|
(4,091
|
)
|
|
(4,621
|
)
|
|
(2,651
|
)
|
|||
Gain on sales of real estate
|
(105,230
|
)
|
|
(2,340
|
)
|
|
(9,890
|
)
|
|||
Share-based compensation
|
6,714
|
|
|
6,376
|
|
|
5,615
|
|
|||
Other
|
(6,022
|
)
|
|
(2,733
|
)
|
|
(4,216
|
)
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|||||
(Increase) decrease in accounts receivable
|
(7,141
|
)
|
|
5,673
|
|
|
2,783
|
|
|||
(Increase) decrease in prepaid expenses and other assets, net
|
(23,255
|
)
|
|
(1,735
|
)
|
|
6,398
|
|
|||
Increase (decrease) in accounts payable, accrued expenses and other liabilities
|
21,167
|
|
|
(48,431
|
)
|
|
5,130
|
|
|||
Increase (decrease) in rents received in advance and security deposits
|
3,541
|
|
|
4,827
|
|
|
(3,913
|
)
|
|||
Net cash provided by operating activities
|
$
|
228,558
|
|
|
$
|
180,482
|
|
|
$
|
230,121
|
|
Reconciliation of cash and cash equivalents and restricted cash:
|
|
|
|
|
|
||||||
Cash and cash equivalents at beginning of period
|
$
|
8,066
|
|
|
$
|
12,261
|
|
|
$
|
209,863
|
|
Restricted cash at beginning of period
|
3,884
|
|
|
2,570
|
|
|
2,756
|
|
|||
Cash and cash equivalents and restricted cash at beginning of period
|
$
|
11,950
|
|
|
$
|
14,831
|
|
|
$
|
212,619
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents at end of period
|
$
|
14,733
|
|
|
$
|
8,066
|
|
|
$
|
12,261
|
|
Restricted cash at end of period
|
3,397
|
|
|
3,884
|
|
|
2,570
|
|
|||
Cash and cash equivalents and restricted cash at end of period
|
$
|
18,130
|
|
|
$
|
11,950
|
|
|
$
|
14,831
|
|
Supplemental schedule of non-cash investing and financing activities:
|
|
|
|
|
|
|
|
||||
Increase (decrease) in accrued capital improvements, leasing and other investing activity costs
|
$
|
35,913
|
|
|
$
|
6,570
|
|
|
$
|
(10,654
|
)
|
Finance right-of-use asset contributed by noncontrolling interest in joint venture
|
$
|
2,570
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Operating right-of-use assets obtained in exchange for operating lease liabilities
|
$
|
840
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Finance right-of-use asset obtained in exchange for finance lease liability
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
16,127
|
|
Non-cash changes from property dispositions:
|
|
|
|
|
|
||||||
Contribution of properties to unconsolidated real estate joint venture
|
$
|
158,542
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Investment in unconsolidated real estate joint venture retained in disposition
|
$
|
34,506
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Non-cash changes from recognition of property sale previously accounted for as financing arrangement:
|
|
|
|
|
|
||||||
Decrease in assets held for sale, net
|
$
|
—
|
|
|
$
|
(42,226
|
)
|
|
$
|
—
|
|
Decrease in deferred property sale
|
$
|
—
|
|
|
$
|
43,377
|
|
|
$
|
—
|
|
(Decrease) increase in fair value of derivatives applied to accumulated other comprehensive income and noncontrolling interests
|
$
|
(25,817
|
)
|
|
$
|
2,915
|
|
|
$
|
3,845
|
|
Equity in other comprehensive income of an equity method investee
|
$
|
199
|
|
|
$
|
210
|
|
|
$
|
39
|
|
Distributions payable
|
$
|
31,263
|
|
|
$
|
30,856
|
|
|
$
|
28,921
|
|
Increase (decrease) in redeemable noncontrolling interests and decrease (increase) in equity to carry redeemable noncontrolling interests at fair value
|
$
|
1,749
|
|
|
$
|
1,837
|
|
|
$
|
(626
|
)
|
•
|
170 properties totaling 19.2 million square feet comprised of 15.4 million square feet in 148 office properties and 3.7 million square feet in 22 single-tenant data center shell properties (“data center shells”). We owned 15 of these data center shells through unconsolidated real estate joint ventures;
|
•
|
a wholesale data center with a critical load of 19.25 megawatts;
|
•
|
14 properties under development or redevelopment (ten office properties and four data center shells) that we estimate will total approximately 2.5 million square feet upon completion, including one partially-operational property; and
|
•
|
approximately 900 acres of land controlled for future development that we believe could be developed into approximately 11.3 million square feet and 43 acres of other land.
|
•
|
the reported amounts of assets and liabilities in our consolidated balance sheets at the dates of the financial statements;
|
•
|
the disclosure of contingent assets and liabilities at the dates of the financial statements; and
|
•
|
the reported amounts of revenues and expenses in our consolidated statements of operations during the reporting periods.
|
|
|
Estimated Useful Lives
|
Buildings and building improvements
|
|
10-40 years
|
Land improvements
|
|
10-20 years
|
Tenant improvements on operating properties
|
|
Shorter of remaining useful lives of assets or related lease term
|
Equipment and personal property
|
|
3-10 years
|
•
|
properties based on a valuation performed under the assumption that the property is vacant upon acquisition (the “if-vacant value”). The if-vacant value is allocated between land and buildings or, in the case of properties under development, development in progress. We also allocate additional amounts to properties for in-place tenant improvements based on our estimate of improvements per square foot provided under market leases that would be attributable to the remaining non-cancelable terms of the respective leases;
|
•
|
above- and below-market lease intangible assets or liabilities based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between: (1) the contractual amounts to be received pursuant to the in-place leases; and (2) our estimate of fair market lease rates for the corresponding space, measured over a period equal to the remaining non-cancelable term of the lease. The capitalized above- and below-market lease values are amortized as adjustments to rental revenue over the remaining lease terms of the respective leases, and to renewal periods in the case of below-market leases;
|
•
|
in-place lease value based on our estimates of: (1) the present value of additional income to be realized as a result of leases being in place on the acquired properties; and (2) costs to execute similar leases. Our estimate of additional income to be realized includes carrying costs, such as real estate taxes, insurance and other operating expenses, and revenues during the expected lease-up periods considering current market conditions. Our estimate of costs to execute similar leases includes leasing commissions, legal and other related costs;
|
•
|
tenant relationship value based on our evaluation of the specific characteristics of each tenant’s lease and our overall relationship with that respective tenant. Characteristics we consider in determining these values include the nature and extent of our existing business relationships with the tenant, growth prospects for developing new business with the tenant, the tenant’s credit quality and expectations of lease renewals, among other factors; and
|
•
|
above- and below-market cost arrangements (such as real estate tax treaties or above- or below-market ground leases) based on the present value of the expected benefit from any such arrangements in place on the property at the time of acquisition.
|
Asset Type
|
|
Amortization Period
|
Above- and below-market leases
|
|
Related lease terms
|
In-place lease value
|
|
Related lease terms
|
Tenant relationship value
|
|
Estimated period of time that tenant will lease space in property
|
Above- and below-market cost arrangements
|
|
Term of arrangements
|
•
|
GMP contracts provide for revenue equal to costs incurred plus a fee equal to a percentage of such costs, up to a maximum contract amount. We generally enter into GMP contracts for projects that are significant in nature based on the size of the project and total fees, and for which the full scope of the project has not been determined as of the contract date. GMP contracts are lower risk to us than FFP contracts since the costs and revenue move proportionately to one another.
|
•
|
FFP contracts provide for revenue equal to a fixed fee. These contracts are typically lower in value and scope relative to GMP contracts, and are generally entered into when the scope of the project is well defined. Typically, we assume more risk with FFP contracts than GMP contracts since the revenue is fixed and we could realize losses or less than expected profits if we incur more costs than originally estimated. However, these types of contracts offer the opportunity for additional profits when we complete the work for less than originally estimated.
|
•
|
Cost-plus fee contracts provide for revenue equal to costs incurred plus a fee equal to a percentage of such costs but, unlike GMP contracts, do not have a maximum contract amount. Similar to GMP contracts, cost-plus fee contracts are low risk to us since the costs and revenue move proportionately to one another.
|
|
|
Common Shares
|
|
Preferred Shares
|
||||||||||||
|
|
For the Years Ended December 31,
|
|
For the Years Ended December 31,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
||||
Ordinary income
|
|
54.4
|
%
|
|
83.1
|
%
|
|
86.5
|
%
|
|
N/A
|
|
N/A
|
|
100.0
|
%
|
Return of capital
|
|
45.6
|
%
|
|
16.9
|
%
|
|
13.5
|
%
|
|
N/A
|
|
N/A
|
|
0.0
|
%
|
•
|
Property leases in which we are the lessor:
|
◦
|
Deferral of non-incremental leasing costs: For new or extended tenant leases, we no longer defer recognition of non-incremental leasing costs that we would have deferred under prior accounting guidance; these deferrals totaled $1.2 million in 2018 and $1.1 million in 2017.
|
◦
|
Change in presentation of revenue: Due to our adoption of the practical expedient discussed above to not separate non-lease component revenue from the associated lease component, we are aggregating revenue from our lease components and non-lease components (comprised predominantly of tenant operating expense reimbursements) into the line entitled “lease revenue.” We are reporting other revenue from our properties in the line entitled “other property revenue.” We recast prior periods for these changes in presentation.
|
◦
|
Changes in assessment of lease revenue collectability: Changes in our assessment of lease revenue collectability that previously would have resulted in charges to bad debt expense under prior guidance are being recognized as an adjustment to rental revenue under the new guidance. Such amounts recognized by us in prior periods were not significant.
|
◦
|
Operating expenses paid directly by tenants to third parties: Operating expenses paid directly by tenants to third parties (primarily for real estate taxes) and revenue associated with such tenant payments that would have been recognized under prior guidance will no longer be reported on our Statement of Operations. Such amounts recognized by us in prior periods were not significant.
|
•
|
Leases in which we are the lessee (the most significant of which are ground leases):
|
◦
|
Balance sheet presentation of property operating lease right-of-use assets: Upon adoption on January 1, 2019, we recognized property right-of-use assets and offsetting lease liabilities for existing operating leases totaling $16 million for the present value of minimum lease payments under these leases, and also reclassified an additional $11 million in amounts previously presented elsewhere on our balance sheet in connection with these leases to the right-of-use assets. We will recognize additional right-of-use assets and lease liabilities as we enter into new operating leases.
|
◦
|
Balance sheet presentation of property finance lease right-of-use assets: Property right-of-use assets of finance leases that previously were presented as properties under prior guidance are being presented as property finance right-of-use assets under the new guidance. As a result, we reclassified $38 million in assets from properties to property finance right-of-use assets upon adoption on January 1, 2019.
|
◦
|
Segment assets: We changed our definition of segment assets used for our reportable segments to include property right-of-use assets associated with operating properties, net of related lease liabilities.
|
Description
|
|
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
|
Significant Other
Observable Inputs(Level 2) |
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Total
|
||||||||
December 31, 2019:
|
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Marketable securities in deferred compensation plan (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Mutual funds
|
|
$
|
3,035
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,035
|
|
Other
|
|
25
|
|
|
—
|
|
|
—
|
|
|
25
|
|
||||
Interest rate derivatives (1)
|
|
—
|
|
|
23
|
|
|
—
|
|
|
23
|
|
||||
Total assets
|
|
$
|
3,060
|
|
|
$
|
23
|
|
|
$
|
—
|
|
|
$
|
3,083
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deferred compensation plan liability (2)
|
|
$
|
—
|
|
|
$
|
3,060
|
|
|
$
|
—
|
|
|
$
|
3,060
|
|
Interest rate derivatives
|
|
—
|
|
|
25,682
|
|
|
—
|
|
|
25,682
|
|
||||
Total liabilities
|
|
$
|
—
|
|
|
$
|
28,742
|
|
|
$
|
—
|
|
|
$
|
28,742
|
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2018:
|
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Marketable securities in deferred compensation plan (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Mutual funds
|
|
$
|
3,819
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,819
|
|
Other
|
|
49
|
|
|
—
|
|
|
—
|
|
|
49
|
|
||||
Interest rate derivatives (1)
|
|
—
|
|
|
5,617
|
|
|
—
|
|
|
5,617
|
|
||||
Total assets
|
|
$
|
3,868
|
|
|
$
|
5,617
|
|
|
$
|
—
|
|
|
$
|
9,485
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deferred compensation plan liability (2)
|
|
$
|
—
|
|
|
$
|
3,868
|
|
|
$
|
—
|
|
|
$
|
3,868
|
|
Interest rate derivatives
|
|
—
|
|
|
5,459
|
|
|
—
|
|
|
5,459
|
|
||||
Total liabilities
|
|
$
|
—
|
|
|
$
|
9,327
|
|
|
$
|
—
|
|
|
$
|
9,327
|
|
Description
|
|
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
|
Significant Other
Observable Inputs(Level 2) |
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Total
|
||||||||
December 31, 2019:
|
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest rate derivatives (1)
|
|
$
|
—
|
|
|
$
|
23
|
|
|
$
|
—
|
|
|
$
|
23
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest rate derivatives
|
|
$
|
—
|
|
|
$
|
25,682
|
|
|
$
|
—
|
|
|
$
|
25,682
|
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2018:
|
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest rate derivatives (1)
|
|
$
|
—
|
|
|
$
|
5,617
|
|
|
$
|
—
|
|
|
$
|
5,617
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest rate derivatives
|
|
$
|
—
|
|
|
$
|
5,459
|
|
|
$
|
—
|
|
|
$
|
5,459
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Land
|
$
|
472,976
|
|
|
$
|
503,274
|
|
Buildings and improvements
|
3,306,791
|
|
|
3,241,894
|
|
||
Less: Accumulated depreciation
|
(1,007,120
|
)
|
|
(897,903
|
)
|
||
Operating properties, net
|
$
|
2,772,647
|
|
|
$
|
2,847,265
|
|
Project Name
|
|
City, State
|
|
Segment
|
|
Date of Sale
|
|
Number of Properties
|
|
Total Rentable Square Feet
|
|
Transaction Value
|
|
Gain on Sale
|
||||||
3120 Fairview Park Drive
|
|
Falls Church, VA
|
|
Northern Virginia Defense/IT
|
|
2/15/2017
|
|
1
|
|
|
190,000
|
|
|
$
|
39,000
|
|
|
$
|
—
|
|
1334 Ashton Road
|
|
Hanover, MD
|
|
Fort Meade/BW Corridor
|
|
6/9/2017
|
|
1
|
|
|
37,000
|
|
|
2,300
|
|
|
—
|
|
||
White Marsh Properties (1)
|
|
White Marsh, MD
|
|
Regional Office and Other
|
|
7/28/2017
|
|
8
|
|
|
412,000
|
|
|
47,500
|
|
|
1,180
|
|
||
201 Technology Drive
|
|
Lebanon, VA
|
|
Data Center Shells
|
|
10/27/2017
|
|
1
|
|
|
103,000
|
|
|
29,500
|
|
|
3,625
|
|
||
7320 Parkway Drive
|
|
Hanover, MD
|
|
Fort Meade/BW Corridor
|
|
12/15/2017
|
|
1
|
|
|
57,000
|
|
|
7,529
|
|
|
831
|
|
||
|
|
|
|
12
|
|
|
799,000
|
|
|
$
|
125,829
|
|
|
$
|
5,636
|
|
Lease revenue
|
|
For the Year Ended December 31, 2019
|
||
Fixed
|
|
$
|
412,342
|
|
Variable
|
|
110,130
|
|
|
|
|
$
|
522,472
|
|
Year Ending December 31,
|
|
December 31, 2019
|
||
2020
|
|
$
|
388,310
|
|
2021
|
|
336,482
|
|
|
2022
|
|
299,356
|
|
|
2023
|
|
245,661
|
|
|
2024
|
|
195,246
|
|
|
Thereafter
|
|
474,741
|
|
|
|
|
$
|
1,939,796
|
|
•
|
$37.8 million for land on which we are developing an office property in Washington, DC through our Stevens Investors, LLC joint venture, virtually all of the rent on which was previously paid. This lease has a 96-year remaining term, and we possess a bargain purchase option that we expect to exercise in 2020;
|
•
|
$10.3 million for land underlying operating office properties in Washington, DC under two leases with remaining terms of approximately 80 years;
|
•
|
$6.5 million for land underlying a parking garage in Baltimore, Maryland under a lease with a remaining term of 29 years and an option to renew for an additional 49 years that was included in the term used in determining the asset balance;
|
•
|
$6.6 million for land in a research park in College Park, Maryland under four leases through our M Square Associates, LLC joint venture all of the rent on which was previously paid. These leases had remaining terms ranging from 63 to 74 years;
|
•
|
$4.8 million for land in a business park in Huntsville, Alabama under 10 leases through our LW Redstone Company, LLC joint venture, with remaining terms ranging from 43 to 51 years and options to renew for an additional 25 years that were not included in the term used in determining the asset balance; and
|
•
|
$2.3 million for other land underlying operating properties in our Fort Meade/BW Corridor sub-segment under two leases with remaining terms of approximately 48 years all of the rent on which was previously paid.
|
Leases
|
|
Balance Sheet Location
|
|
December 31, 2019
|
||
Right-of-use assets
|
|
|
|
|
||
Operating leases - Property
|
|
Property - operating right-of-use assets
|
|
$
|
27,864
|
|
Finance leases
|
|
|
|
|
||
Property
|
|
Property - finance right-of-use assets
|
|
40,458
|
|
|
Vehicles and office equipment
|
|
Prepaid expenses and other assets, net
|
|
1,196
|
|
|
Total finance lease right-of-use assets
|
|
|
|
41,654
|
|
|
|
|
|
|
|
||
Total right-of-use assets
|
|
|
|
$
|
69,518
|
|
Leases
|
|
Balance Sheet Location
|
|
December 31, 2019
|
||
Lease liabilities
|
|
|
|
|
||
Operating leases - Property
|
|
Property - operating lease liabilities
|
|
$
|
17,317
|
|
Finance leases
|
|
Other liabilities
|
|
1,116
|
|
|
|
|
|
|
|
||
Total lease liabilities
|
|
|
|
$
|
18,433
|
|
Weighted average remaining lease term
|
|
|
|
Operating leases
|
|
68 years
|
|
Finance leases
|
|
1 year
|
|
Weighted average discount rate
|
|
|
|
Operating leases
|
|
7.33
|
%
|
Finance leases
|
|
3.11
|
%
|
Lease cost
|
|
Statement of Operations Location
|
|
For the Year Ended December 31, 2019
|
||
Operating lease cost
|
|
|
|
|
||
Property leases
|
|
Property operating expenses
|
|
$
|
1,699
|
|
Vehicles and office equipment
|
|
General, administrative and leasing expenses
|
|
69
|
|
|
Finance lease cost
|
|
|
|
|
||
Amortization of vehicles and office equipment right-of-use assets
|
|
General, administrative and leasing expenses
|
|
457
|
|
|
Amortization of property right-of-use assets
|
|
Property operating expenses
|
|
30
|
|
|
Interest on lease liabilities
|
|
Interest expense
|
|
13
|
|
|
|
|
|
|
$
|
2,268
|
|
Supplemental cash flow information
|
|
For the Year Ended December 31, 2019
|
||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
|
||
Operating cash flows for operating leases
|
|
$
|
1,004
|
|
Operating cash flows for financing leases
|
|
$
|
13
|
|
Financing cash flows for financing leases
|
|
$
|
223
|
|
Year Ending December 31,
|
|
Operating leases
|
|
Finance leases
|
|
Total
|
||||||
2020
|
|
$
|
1,140
|
|
|
$
|
862
|
|
|
$
|
2,002
|
|
2021
|
|
1,146
|
|
|
202
|
|
|
1,348
|
|
|||
2022
|
|
1,164
|
|
|
64
|
|
|
1,228
|
|
|||
2023
|
|
1,169
|
|
|
—
|
|
|
1,169
|
|
|||
2024
|
|
1,173
|
|
|
—
|
|
|
1,173
|
|
|||
Thereafter
|
|
100,609
|
|
|
—
|
|
|
100,609
|
|
|||
Total lease payments
|
|
106,401
|
|
|
1,128
|
|
|
107,529
|
|
|||
Less: Amount representing interest
|
|
(89,084
|
)
|
|
(12
|
)
|
|
(89,096
|
)
|
|||
Lease liability
|
|
$
|
17,317
|
|
|
$
|
1,116
|
|
|
$
|
18,433
|
|
Year Ending December 31,
|
|
Operating leases
|
|
Finance leases
|
|
Total
|
||||||
2019
|
|
$
|
1,101
|
|
|
$
|
219
|
|
|
$
|
1,320
|
|
2020
|
|
1,110
|
|
|
844
|
|
|
1,954
|
|
|||
2021
|
|
1,094
|
|
|
184
|
|
|
1,278
|
|
|||
2022
|
|
1,115
|
|
|
49
|
|
|
1,164
|
|
|||
2023
|
|
1,119
|
|
|
—
|
|
|
1,119
|
|
|||
Thereafter
|
|
83,373
|
|
|
—
|
|
|
83,373
|
|
|||
Total lease payments
|
|
$
|
88,912
|
|
|
1,296
|
|
|
90,208
|
|
||
Less: Amount representing interest
|
|
N/A
|
|
|
(24
|
)
|
|
(24
|
)
|
|||
Total
|
|
N/A
|
|
|
$
|
1,272
|
|
|
$
|
90,184
|
|
|
|
|
|
Nominal Ownership %
|
|
|
|
December 31, 2019 (1)
|
||||||||||
|
|
Date Acquired
|
|
|
|
|
Total Assets
|
|
Encumbered Assets
|
|
Total Liabilities
|
|||||||
Entity
|
|
|
|
Location
|
|
|
|
|||||||||||
LW Redstone Company, LLC
|
|
3/23/2010
|
|
85%
|
|
Huntsville, Alabama
|
|
$
|
249,875
|
|
|
$
|
73,911
|
|
|
$
|
73,083
|
|
M Square Associates, LLC
|
|
6/26/2007
|
|
50%
|
|
College Park, Maryland
|
|
87,915
|
|
|
63,895
|
|
|
56,028
|
|
|||
Stevens Investors, LLC
|
|
8/11/2015
|
|
95%
|
|
Washington, DC
|
|
126,603
|
|
|
126,112
|
|
|
56,268
|
|
|||
|
|
|
|
|
|
|
|
$
|
464,393
|
|
|
$
|
263,918
|
|
|
$
|
185,379
|
|
•
|
for LW Redstone Company, LLC, we anticipate funding certain infrastructure costs (up to a maximum of $76.0 million excluding accrued interest thereon) due to be reimbursed by the City of Huntsville as discussed further in Note 8. We had advanced $49.0 million to the City through December 31, 2019 to fund such costs. We also expect to fund additional development costs through equity contributions to the extent that third party financing is not obtained. Our partner was credited with a $9.0 million capital account upon formation and is not required to make equity contributions. While net
|
•
|
cumulative preferred returns on capital invested to fund the project’s infrastructure costs on a pro rata basis to us and our partner;
|
•
|
cumulative preferred returns on our capital invested to fund the project’s vertical construction;
|
•
|
return of our invested capital;
|
•
|
return of our partner’s capital;
|
•
|
any remaining residual 85% to us and 15% to our partner.
|
•
|
for M Square Associates, LLC, net cash flows of this entity are distributed to the partners as follows: (1) member loans and accrued interest; (2) our preferred return and capital contributions used to fund infrastructure costs; (3) the partners’ preferred returns and capital contributions used to fund all other costs, including the base land value credit, in proportion to the accrued returns and capital accounts; and (4) residual amounts distributed 50% to each member; and
|
•
|
for Stevens Investors, LLC, net cash flows of this entity will be distributed to the partners as follows: (1) member loans and accrued interest; (2) pro rata return of the partners’ capital; (3) pro rata return of the partners’ respective unpaid preferred returns; and (4) varying splits of 85% to 60% to us and the balance to our partners as we reach specified return hurdles. Our partners have the right to require us to acquire some or all of their interests for fair value for a defined period of time following the property’s development completion (expected to occur in 2021) and stabilization (as defined in the operating agreement) of the joint venture’s office property; accordingly, we classify the fair value of our partners’ interest as redeemable noncontrolling interests in the mezzanine section of our consolidated balance sheets. We and our partners each have the right to acquire each other’s interests at fair value upon the second anniversary of the property’s stabilization date (as defined in the operating agreement). Our partners have the right to receive some or all of the consideration for the acquisition of their interests in the form of common units in COPLP.
|
|
|
Date Acquired
|
|
Nominal Ownership %
|
|
Number of Properties
|
|
Carrying Value of Investment (1)
|
|||||||
Entity
|
|
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||
GI-COPT DC Partnership LLC
|
|
7/21/2016
|
|
50%
|
|
6
|
|
|
$
|
37,816
|
|
|
$
|
39,845
|
|
BREIT COPT DC JV LLC
|
|
6/20/2019
|
|
10%
|
|
9
|
|
|
14,133
|
|
|
—
|
|
||
|
|
|
|
|
|
15
|
|
|
$
|
51,949
|
|
|
$
|
39,845
|
|
•
|
for GI-COPT DC Partnership LLC, under the terms of the joint venture agreement, we and our partner receive returns in proportion to our investments in the joint venture; and
|
•
|
for BREIT-COPT, as described further in Note 4, in 2019, we sold a 90% interest in nine triple-net leased, single-tenant data center shell properties in Northern Virginia and retained a 10% interest in the properties through the joint venture. We concluded that the joint venture is a variable interest entity. Under the terms of the joint venture agreement, we and our partner receive returns in proportion to our investments, and our maximum exposure to losses is limited to our investment, subject to certain indemnification obligations with respect to nonrecourse debt secured by the properties. The nature of our
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net
Carrying Amount
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net
Carrying Amount
|
||||||||||||
In-place lease value
|
|
$
|
131,975
|
|
|
$
|
120,894
|
|
|
$
|
11,081
|
|
|
$
|
132,276
|
|
|
$
|
117,520
|
|
|
$
|
14,756
|
|
Tenant relationship value
|
|
59,131
|
|
|
43,544
|
|
|
15,587
|
|
|
60,028
|
|
|
39,703
|
|
|
20,325
|
|
||||||
Above-market leases
|
|
13,718
|
|
|
13,318
|
|
|
400
|
|
|
13,841
|
|
|
13,164
|
|
|
677
|
|
||||||
Below-market cost arrangements (1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,880
|
|
|
1,507
|
|
|
7,373
|
|
||||||
Other
|
|
1,333
|
|
|
1,009
|
|
|
324
|
|
|
1,333
|
|
|
994
|
|
|
339
|
|
||||||
|
|
$
|
206,157
|
|
|
$
|
178,765
|
|
|
$
|
27,392
|
|
|
$
|
216,358
|
|
|
$
|
172,888
|
|
|
$
|
43,470
|
|
(1)
|
These assets pertain to ground leases. Upon our adoption of lease accounting guidance effective January 1, 2019, the net carrying amount was reclassified to property operating lease right-of-use assets associated with these leases.
|
|
|
December 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Notes receivable from City of Huntsville
|
|
$
|
59,427
|
|
|
$
|
53,961
|
|
Other investing loans receivable
|
|
14,096
|
|
|
3,021
|
|
||
|
|
$
|
73,523
|
|
|
$
|
56,982
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Lease incentives, net
|
$
|
28,433
|
|
|
$
|
21,258
|
|
Prepaid expenses
|
18,835
|
|
|
25,658
|
|
||
Construction contract costs in excess of billings
|
17,223
|
|
|
3,189
|
|
||
Furniture, fixtures and equipment, net (1)
|
7,823
|
|
|
8,630
|
|
||
Non-real estate equity investments
|
6,705
|
|
|
5,940
|
|
||
Deferred financing costs, net (2)
|
3,633
|
|
|
4,733
|
|
||
Restricted cash
|
3,397
|
|
|
3,884
|
|
||
Deferred tax asset, net
|
2,328
|
|
|
2,084
|
|
||
Interest rate derivatives
|
23
|
|
|
5,617
|
|
||
Other assets
|
4,616
|
|
|
6,337
|
|
||
Total for COPLP and subsidiaries
|
93,016
|
|
|
87,330
|
|
||
Marketable securities in deferred compensation plan
|
3,060
|
|
|
3,868
|
|
||
Total for COPT and subsidiaries
|
$
|
96,076
|
|
|
$
|
91,198
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Operating loss carry forward
|
$
|
2,885
|
|
|
$
|
4,354
|
|
Property
|
(77
|
)
|
|
427
|
|
||
Share-based compensation
|
—
|
|
|
28
|
|
||
Accrued payroll
|
—
|
|
|
2
|
|
||
Valuation allowance
|
(480
|
)
|
|
(2,727
|
)
|
||
Deferred tax asset, net
|
$
|
2,328
|
|
|
$
|
2,084
|
|
|
|
Carrying Value (1) as of
|
|
December 31, 2019
|
||||||||
|
|
December 31,
2019 |
|
December 31,
2018 |
|
|||||||
|
|
|
|
Stated Interest Rates
|
|
Scheduled Maturity
|
||||||
Mortgage and Other Secured Debt:
|
|
|
|
|
|
|
|
|
|
|
||
Fixed rate mortgage debt (2)
|
|
$
|
143,430
|
|
|
$
|
147,141
|
|
|
3.82% - 4.62% (3)
|
|
2023-2026
|
Variable rate secured debt (4)
|
|
68,055
|
|
|
23,282
|
|
|
LIBOR + 1.45% to 2.35% (5)
|
|
2020-2026
|
||
Total mortgage and other secured debt
|
|
211,485
|
|
|
170,423
|
|
|
|
|
|
||
Revolving Credit Facility
|
|
177,000
|
|
|
213,000
|
|
|
LIBOR + 0.775% to 1.45% (6)
|
|
March 2023 (7)
|
||
Term Loan Facility (8)
|
|
248,706
|
|
|
248,273
|
|
|
LIBOR + 0.85% to 1.65% (9)
|
|
2022
|
||
Unsecured Senior Notes (10)
|
|
|
|
|
|
|
|
|
||||
3.60%, $350,000 aggregate principal
|
|
348,431
|
|
|
347,986
|
|
|
3.60% (11)
|
|
May 2023
|
||
5.25%, $250,000 aggregate principal
|
|
247,652
|
|
|
247,136
|
|
|
5.25% (12)
|
|
February 2024
|
||
3.70%, $300,000 aggregate principal
|
|
299,324
|
|
|
298,815
|
|
|
3.70% (13)
|
|
June 2021
|
||
5.00%, $300,000 aggregate principal
|
|
297,503
|
|
|
297,109
|
|
|
5.00% (14)
|
|
July 2025
|
||
Unsecured note payable
|
|
1,038
|
|
|
1,167
|
|
|
0% (15)
|
|
May 2026
|
||
Total debt, net
|
|
$
|
1,831,139
|
|
|
$
|
1,823,909
|
|
|
|
|
|
(1)
|
The carrying values of our debt other than the Revolving Credit Facility reflect net deferred financing costs of $5.8 million as of December 31, 2019 and $7.2 million as of December 31, 2018.
|
(2)
|
Certain of the fixed rate mortgages carry interest rates that, upon assumption, were above or below market rates and therefore were recorded at their fair value based on applicable effective interest rates. The carrying values of these loans reflect net unamortized premiums totaling $217,000 as of December 31, 2019 and $281,000 as of December 31, 2018.
|
(3)
|
The weighted average interest rate on our fixed rate mortgage debt was 4.16% as of December 31, 2019.
|
(4)
|
Includes a construction loan with $64.9 million in remaining borrowing capacity as of December 31, 2019.
|
(5)
|
The weighted average interest rate on our variable rate secured debt was 3.85% as of December 31, 2019.
|
(6)
|
The weighted average interest rate on the Revolving Credit Facility was 2.70% as of December 31, 2019.
|
(7)
|
The facility matures in March 2023, with the ability for us to further extend such maturity by two six-month periods at our option, provided that there is no default under the facility and we pay an extension fee of 0.075% of the total availability under the facility for each extension period.
|
(8)
|
As discussed below, we have the ability to borrow an additional $150.0 million in the aggregate under this facility, provided that there is no default under the facility and subject to the approval of the lenders. In addition, in connection with our Revolving Credit Facility, we have the ability to borrow up to $500.0 million under new term loans from the facility’s lender group provided that there is no default under the facility and subject to the approval of the lenders.
|
(9)
|
The interest rate on this loan was 2.94% as of December 31, 2019.
|
(10)
|
Refer to the paragraphs below for further disclosure.
|
(11)
|
The carrying value of these notes reflects an unamortized discount totaling $1.1 million as of December 31, 2019 and $1.4 million as of December 31, 2018. The effective interest rate under the notes, including amortization of the issuance costs, was 3.70%.
|
(12)
|
The carrying value of these notes reflects an unamortized discount totaling $2.1 million as of December 31, 2019 and $2.6 million as of December 31, 2018. The effective interest rate under the notes, including amortization of the issuance costs, was 5.49%.
|
(13)
|
The carrying value of these notes reflects an unamortized discount totaling $534,000 as of December 31, 2019 and $943,000 as of December 31, 2018. The effective interest rate under the notes, including amortization of the issuance costs, was 3.85%.
|
(14)
|
The carrying value of these notes reflects an unamortized discount totaling $2.1 million as of December 31, 2019 and $2.4 million as of December 31, 2018. The effective interest rate under the notes, including amortization of the issuance costs, was 5.15%
|
(15)
|
This note carries an interest rate that, upon assumption, was below market rates and it therefore was recorded at its fair value based on applicable effective interest rates. The carrying value of this note reflects an unamortized discount totaling $223,000 as of December 31, 2019 and $294,000 as of December 31, 2018.
|
Year Ending December 31,
|
December 31, 2019
|
|
||
2020
|
$
|
16,156
|
|
|
2021
|
303,955
|
|
|
|
2022
|
301,341
|
|
|
|
2023
|
593,830
|
|
|
|
2024
|
279,683
|
|
|
|
Thereafter
|
347,842
|
|
|
|
Total
|
$
|
1,842,807
|
|
(1)
|
(1)
|
Represents scheduled principal amortization and maturities only and therefore excludes net discounts and deferred financing costs of $11.7 million.
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||
|
Carrying
Amount
|
|
Estimated
Fair Value
|
|
Carrying
Amount
|
|
Estimated
Fair Value
|
||||||||
Fixed-rate debt
|
|
|
|
|
|
|
|
|
|
|
|
||||
Unsecured Senior Notes
|
$
|
1,192,910
|
|
|
$
|
1,227,441
|
|
|
$
|
1,191,046
|
|
|
$
|
1,219,603
|
|
Other fixed-rate debt
|
144,468
|
|
|
149,907
|
|
|
148,308
|
|
|
147,106
|
|
||||
Variable-rate debt
|
493,761
|
|
|
495,962
|
|
|
484,555
|
|
|
486,497
|
|
||||
|
$
|
1,831,139
|
|
|
$
|
1,873,310
|
|
|
$
|
1,823,909
|
|
|
$
|
1,853,206
|
|
Notional Amount
|
|
|
|
|
|
Effective Date
|
|
Expiration Date
|
|
Fair Value at December 31,
|
|||||||||
|
Fixed Rate
|
|
Floating Rate Index
|
|
|
|
2019
|
|
2018
|
||||||||||
$
|
12,438
|
|
(1)
|
1.390
|
%
|
|
One-Month LIBOR
|
|
10/13/2015
|
|
10/1/2020
|
|
$
|
23
|
|
|
$
|
239
|
|
100,000
|
|
|
1.901
|
%
|
|
One-Month LIBOR
|
|
9/1/2016
|
|
12/1/2022
|
|
(1,028
|
)
|
|
1,968
|
|
|||
100,000
|
|
|
1.905
|
%
|
|
One-Month LIBOR
|
|
9/1/2016
|
|
12/1/2022
|
|
(1,037
|
)
|
|
1,967
|
|
|||
50,000
|
|
|
1.908
|
%
|
|
One-Month LIBOR
|
|
9/1/2016
|
|
12/1/2022
|
|
(524
|
)
|
|
971
|
|
|||
11,200
|
|
(2)
|
1.678
|
%
|
|
One-Month LIBOR
|
|
8/1/2019
|
|
8/1/2026
|
|
(20
|
)
|
|
—
|
|
|||
75,000
|
|
|
3.176
|
%
|
|
Three-Month LIBOR
|
|
6/30/2020
|
|
6/30/2030
|
|
(8,640
|
)
|
|
(2,676
|
)
|
|||
75,000
|
|
|
3.192
|
%
|
|
Three-Month LIBOR
|
|
6/30/2020
|
|
6/30/2030
|
|
(8,749
|
)
|
|
(2,783
|
)
|
|||
75,000
|
|
|
2.744
|
%
|
|
Three-Month LIBOR
|
|
6/30/2020
|
|
6/30/2030
|
|
(5,684
|
)
|
|
—
|
|
|||
100,000
|
|
|
1.730
|
%
|
|
One-Month LIBOR
|
|
9/1/2015
|
|
8/1/2019
|
|
—
|
|
|
472
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(25,659
|
)
|
|
$
|
158
|
|
|
|
|
|
Fair Value at December 31,
|
||||||
Derivatives
|
|
Balance Sheet Location
|
|
2019
|
|
2018
|
||||
Interest rate swaps designated as cash flow hedges
|
|
Prepaid expenses and other assets, net
|
|
$
|
23
|
|
|
$
|
5,617
|
|
Interest rate swaps designated as cash flow hedges
|
|
Interest rate derivatives (liabilities)
|
|
$
|
(25,682
|
)
|
|
$
|
(5,459
|
)
|
|
|
Amount of (Loss) Gain Recognized in AOCI on Derivatives
|
|
Amount of Gain (Loss) Reclassified from AOCI into Interest Expense on Statement of Operations
|
||||||||||||||||||||
|
|
For the Years Ended December 31,
|
|
For the Years Ended December 31,
|
||||||||||||||||||||
Derivatives in Hedging Relationships
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||
Interest rate derivatives
|
|
$
|
(24,321
|
)
|
|
$
|
(2,373
|
)
|
|
$
|
684
|
|
|
$
|
1,415
|
|
|
$
|
407
|
|
|
$
|
(3,304
|
)
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
Beginning balance
|
|
$
|
26,260
|
|
|
$
|
23,125
|
|
|
$
|
22,979
|
|
Contributions from noncontrolling interests
|
|
—
|
|
|
186
|
|
|
—
|
|
|||
Distributions to noncontrolling interests
|
|
(2,413
|
)
|
|
(1,411
|
)
|
|
(1,566
|
)
|
|||
Net income attributable to noncontrolling interests
|
|
3,835
|
|
|
2,523
|
|
|
2,338
|
|
|||
Adjustment to arrive at fair value of interests
|
|
1,749
|
|
|
1,837
|
|
|
(626
|
)
|
|||
Ending balance
|
|
$
|
29,431
|
|
|
$
|
26,260
|
|
|
$
|
23,125
|
|
•
|
the 5.600% Series K Cumulative Redeemable Preferred Shares (the “Series K Preferred Shares”) redeemed effective January 21, 2017 at a price of $50.00 per share, or $26.6 million in the aggregate, plus accrued and unpaid dividends thereon through the date of redemption. Concurrently with this redemption, COPLP redeemed its Series K Preferred Units on the same terms; and
|
•
|
the 7.375% Series L Cumulative Preferred Shares (the “Series L Preferred Shares”) redeemed effective June 27, 2017 at a price of $25.00 per share, or $172.5 million in the aggregate, plus accrued and unpaid dividends thereon up to but not including the date of redemption. Concurrently with this redemption, COPLP redeemed its Series L Preferred Units on the same terms. We also recognized a $6.8 million decrease to net income available to common shareholders in 2017 pertaining to the original issuance costs incurred on the shares.
|
•
|
992,000 shares in 2018 at a weighted average price of $30.46 per share. Net proceeds from the shares issued totaled $29.8 million, after payment of $0.5 million in commissions to sales agents; and
|
•
|
591,000 shares in 2017 at a weighted average price of $33.84 per share. Net proceeds from the shares issued totaled $19.7 million, after payment of $0.3 million in commissions to sales agents.
|
•
|
1.6 million shares in 2019 for net proceeds of $46.5 million;
|
•
|
5.9 million shares in 2018 for net proceeds of $172.5 million; and
|
•
|
1.7 million shares in 2017 for net proceeds of $50.0 million.
|
•
|
the 5.600% Series K Preferred Units effective on January 21, 2017; and
|
•
|
the 7.375% Series L Cumulative Preferred Units on June 27, 2017 at a price of $25.00 per unit, or $172.5 million in the aggregate, plus accrued and unpaid distributions thereon through the date of redemption, and recognized a $6.8 million decrease to net income available to common unitholders pertaining to the units’ original issuance costs at the time of redemption.
|
•
|
reduce, effective September 23, 2019, the priority annual cumulative return on these units from 7.5% of the units’ liquidation preference to 3.5%, and eliminate provisions for future increases previously in place;
|
•
|
extend the earliest date that COPLP could redeem the units to January 1, 2020; and
|
•
|
establish the notice provisions in advance of property sales and debt repayments or refinancing and related redemption requirements described above.
|
•
|
992,000 shares in 2018 at a weighted average price of $30.46 per share. Net proceeds from the shares issued totaled $29.8 million, after payment of $0.5 million in commissions to sales agents; and
|
•
|
591,000 shares in 2017 at a weighted average price of $33.84 per share. Net proceeds from the shares issued totaled $19.7 million, after payment of $0.3 million in commissions to sales agents.
|
•
|
1.6 million shares in 2019 for net proceeds of $46.5 million;
|
•
|
5.9 million shares in 2018 for net proceeds of $172.5 million; and
|
•
|
1.7 million shares in 2017 for net proceeds of $50.0 million.
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
General, administrative and leasing expenses
|
|
$
|
5,748
|
|
|
$
|
5,415
|
|
|
$
|
4,649
|
|
Property operating expenses
|
|
966
|
|
|
961
|
|
|
966
|
|
|||
Capitalized to development activities
|
|
742
|
|
|
587
|
|
|
480
|
|
|||
Share-based compensation cost
|
|
$
|
7,456
|
|
|
$
|
6,963
|
|
|
$
|
6,095
|
|
•
|
$6.5 million on restricted shares expected to be recognized over a weighted average period of approximately two years;
|
•
|
$1.6 million on performance-based PIUs (“PB-PIUs”) expected to be recognized over a weighted average performance period of approximately two years;
|
•
|
$1.1 million on time-based PIUs (“TB-PIUs”) expected to be recognized over a weighted average performance period of approximately two years;
|
•
|
$630,000 on PSUs expected to be recognized over a weighted average performance period of approximately one year; and
|
•
|
$33,000 on deferred share awards expected to be recognized through May 2020.
|
|
|
Shares
|
|
Weighted Average Grant Date Fair Value
|
|||
Unvested as of December 31, 2016
|
|
371,247
|
|
|
$
|
26.20
|
|
Granted
|
|
239,479
|
|
|
33.84
|
|
|
Forfeited
|
|
(27,056
|
)
|
|
27.80
|
|
|
Vested
|
|
(158,044
|
)
|
|
26.27
|
|
|
Unvested as of December 31, 2017
|
|
425,626
|
|
|
30.37
|
|
|
Granted
|
|
219,716
|
|
|
25.62
|
|
|
Forfeited
|
|
(25,419
|
)
|
|
30.02
|
|
|
Vested
|
|
(181,238
|
)
|
|
29.49
|
|
|
Unvested as of December 31, 2018
|
|
438,685
|
|
|
28.38
|
|
|
Granted
|
|
195,520
|
|
|
26.56
|
|
|
Forfeited
|
|
(56,341
|
)
|
|
29.44
|
|
|
Vested
|
|
(185,001
|
)
|
|
28.01
|
|
|
Unvested as of December 31, 2019
|
|
392,863
|
|
|
$
|
27.49
|
|
Unvested shares as of December 31, 2019 that are expected to vest
|
|
363,773
|
|
|
$
|
27.50
|
|
Percentile Rank
|
|
Earned Awards Payout %
|
75th or greater
|
|
100% of PB-PIUs granted
|
50th (target)
|
|
50% of PB-PIUs granted
|
25th
|
|
25% of PB-PIUs granted
|
Below 25th
|
|
0% of PB-PIUs granted
|
Grant Date
|
|
Number of PSUs Granted
|
|
Performance Period Commencement Date
|
|
Performance Period End Date
|
|
Grant Date Fair Value
|
|
Number of PSUs Outstanding as of December 31, 2019
|
||||
3/5/2015
|
|
45,656
|
|
|
1/1/2015
|
|
12/31/2017
|
|
$
|
1,678
|
|
|
—
|
|
3/1/2016
|
|
26,299
|
|
|
1/1/2016
|
|
12/31/2018
|
|
$
|
1,005
|
|
|
—
|
|
1/1/2017
|
|
39,351
|
|
|
1/1/2017
|
|
12/31/2019
|
|
$
|
1,415
|
|
|
39,351
|
|
1/1/2018
|
|
59,110
|
|
|
1/1/2018
|
|
12/31/2020
|
|
$
|
1,890
|
|
|
59,110
|
|
Percentile Rank
|
|
Earned PSUs Payout %
|
75th or greater
|
|
200% of PSUs granted
|
50th (target)
|
|
100% of PSUs granted
|
25th
|
|
50% of PSUs granted
|
Below 25th
|
|
0% of PSUs granted
|
•
|
for awards granted January 1, 2017 and prior thereto, issuing fully-vested COPT shares equal to the aggregate dividends that would have been paid with respect to the common shares issued in settlement of the earned PSUs through the date of settlement had such shares been issued on the grant date, divided by the share price on such settlement date, as defined under the terms of the agreement; or
|
•
|
for awards issued subsequent to January 1, 2017, paying cash equal to the aggregate dividends that would have been paid with respect to the common shares issued in settlement of the earned PSUs through the date of settlement had such shares been issued on the grant date.
|
•
|
for the 2015 PSUs issued to executives that vested on December 31, 2017, we issued 13,328 common shares in settlement of the PSUs on February 22, 2018; and
|
•
|
for the 2016 PSUs issued to executives that vested on December 31, 2018, we issued 44,757 common shares in settlement of the PSUs on January 18, 2019.
|
Grant Date
|
|
Grant Date Fair Value Per Share
|
|
Baseline Common Share Value
|
|
Expected Volatility of Common Shares
|
|
Risk-free Interest Rate
|
||||||
1/1/2017
|
|
$
|
38.43
|
|
|
$
|
31.22
|
|
|
19.0
|
%
|
|
1.47
|
%
|
1/1/2018
|
|
$
|
31.97
|
|
|
$
|
29.20
|
|
|
17.0
|
%
|
|
2.04
|
%
|
Year of Grant
|
|
Number of Deferred Share Awards Granted
|
|
Aggregate Grant Date Fair Value
|
|
Grant Date Fair Value Per Share
|
|||||
2017
|
|
10,032
|
|
|
$
|
326
|
|
|
$
|
32.47
|
|
2018
|
|
13,832
|
|
|
$
|
388
|
|
|
$
|
28.08
|
|
2019
|
|
3,432
|
|
|
$
|
95
|
|
|
$
|
27.60
|
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
Number of common shares issued
|
|
3,097
|
|
|
5,515
|
|
|
15,590
|
|
|||
Grant date fair value per share
|
|
$
|
26.77
|
|
|
$
|
29.32
|
|
|
$
|
26.89
|
|
Aggregate intrinsic value
|
|
$
|
86
|
|
|
$
|
154
|
|
|
$
|
508
|
|
|
|
Options Outstanding and Exercisable
|
|
Weighted Average Exercise Price Per Share
|
|
Weighted Average Remaining Contractual Term
(in Years)
|
|
Aggregate Intrinsic Value
|
|||||
December 31, 2016
|
|
201,100
|
|
|
$
|
43.35
|
|
|
1
|
|
$
|
31
|
|
December 31, 2017
|
|
60,000
|
|
|
$
|
35.17
|
|
|
1
|
|
$
|
—
|
|
December 31, 2018
|
|
30,000
|
|
|
$
|
32.52
|
|
|
0.4
|
|
$
|
—
|
|
December 31, 2019
|
|
—
|
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
Operating Property Segments
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
|
Defense/Information Technology Locations
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
|
Fort Meade/BW Corridor
|
|
Northern Virginia Defense/IT
|
|
Lackland Air Force Base
|
|
Navy Support Locations
|
|
Redstone Arsenal
|
|
Data Center Shells
|
|
Total Defense/IT Locations
|
|
Regional Office
|
|
Operating
Wholesale
Data Center
|
|
Other
|
|
Total
|
||||||||||||||||||||||
Year Ended December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenues from real estate operations
|
$
|
252,781
|
|
|
$
|
55,742
|
|
|
$
|
51,140
|
|
|
$
|
32,659
|
|
|
$
|
16,593
|
|
|
$
|
26,571
|
|
|
$
|
435,486
|
|
|
$
|
59,611
|
|
|
$
|
29,405
|
|
|
$
|
2,961
|
|
|
$
|
527,463
|
|
Property operating expenses
|
(82,815
|
)
|
|
(19,779
|
)
|
|
(29,042
|
)
|
|
(13,579
|
)
|
|
(6,626
|
)
|
|
(1,962
|
)
|
|
(153,803
|
)
|
|
(29,682
|
)
|
|
(13,213
|
)
|
|
(1,445
|
)
|
|
(198,143
|
)
|
|||||||||||
UJV NOI allocable to COPT
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,705
|
|
|
5,705
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,705
|
|
|||||||||||
NOI from real estate operations
|
$
|
169,966
|
|
|
$
|
35,963
|
|
|
$
|
22,098
|
|
|
$
|
19,080
|
|
|
$
|
9,967
|
|
|
$
|
30,314
|
|
|
$
|
287,388
|
|
|
$
|
29,929
|
|
|
$
|
16,192
|
|
|
$
|
1,516
|
|
|
$
|
335,025
|
|
Additions to long-lived assets
|
$
|
34,618
|
|
|
$
|
9,326
|
|
|
$
|
—
|
|
|
$
|
8,912
|
|
|
$
|
1,548
|
|
|
$
|
—
|
|
|
$
|
54,404
|
|
|
$
|
20,925
|
|
|
$
|
893
|
|
|
$
|
128
|
|
|
$
|
76,350
|
|
Transfers from non-operating properties
|
$
|
18,606
|
|
|
$
|
4,548
|
|
|
$
|
10,781
|
|
|
$
|
—
|
|
|
$
|
33,606
|
|
|
$
|
159,472
|
|
|
$
|
227,013
|
|
|
$
|
—
|
|
|
$
|
(1,012
|
)
|
|
$
|
—
|
|
|
$
|
226,001
|
|
Segment assets at December 31, 2019
|
$
|
1,280,656
|
|
|
$
|
396,914
|
|
|
$
|
146,592
|
|
|
$
|
184,257
|
|
|
$
|
138,501
|
|
|
$
|
279,099
|
|
|
$
|
2,426,019
|
|
|
$
|
392,319
|
|
|
$
|
202,935
|
|
|
$
|
3,685
|
|
|
$
|
3,024,958
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Year Ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Revenues from real estate operations
|
$
|
248,927
|
|
|
$
|
53,518
|
|
|
$
|
46,286
|
|
|
$
|
31,927
|
|
|
$
|
14,745
|
|
|
$
|
25,650
|
|
|
$
|
421,053
|
|
|
$
|
61,181
|
|
|
$
|
31,892
|
|
|
$
|
3,127
|
|
|
$
|
517,253
|
|
Property operating expenses
|
(82,975
|
)
|
|
(20,330
|
)
|
|
(26,888
|
)
|
|
(13,536
|
)
|
|
(6,050
|
)
|
|
(3,225
|
)
|
|
(153,004
|
)
|
|
(30,253
|
)
|
|
(16,342
|
)
|
|
(1,436
|
)
|
|
(201,035
|
)
|
|||||||||||
UJV NOI allocable to COPT
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,818
|
|
|
4,818
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,818
|
|
|||||||||||
NOI from real estate operations
|
$
|
165,952
|
|
|
$
|
33,188
|
|
|
$
|
19,398
|
|
|
$
|
18,391
|
|
|
$
|
8,695
|
|
|
$
|
27,243
|
|
|
$
|
272,867
|
|
|
$
|
30,928
|
|
|
$
|
15,550
|
|
|
$
|
1,691
|
|
|
$
|
321,036
|
|
Additions to long-lived assets
|
$
|
38,612
|
|
|
$
|
7,956
|
|
|
$
|
—
|
|
|
$
|
6,535
|
|
|
$
|
573
|
|
|
$
|
—
|
|
|
$
|
53,676
|
|
|
$
|
19,730
|
|
|
$
|
856
|
|
|
$
|
480
|
|
|
$
|
74,742
|
|
Transfers from non-operating properties
|
$
|
35,648
|
|
|
$
|
10,231
|
|
|
$
|
14,718
|
|
|
$
|
(116
|
)
|
|
$
|
4,167
|
|
|
$
|
99,191
|
|
|
$
|
163,839
|
|
|
$
|
—
|
|
|
$
|
2,304
|
|
|
$
|
—
|
|
|
$
|
166,143
|
|
Segment assets at December 31, 2018
|
$
|
1,279,571
|
|
|
$
|
399,339
|
|
|
$
|
139,731
|
|
|
$
|
188,911
|
|
|
$
|
108,010
|
|
|
$
|
353,165
|
|
|
$
|
2,468,727
|
|
|
$
|
395,380
|
|
|
$
|
216,640
|
|
|
$
|
4,115
|
|
|
$
|
3,084,862
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Year Ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Revenues from real estate operations
|
$
|
245,613
|
|
|
$
|
47,118
|
|
|
$
|
47,209
|
|
|
$
|
29,540
|
|
|
$
|
14,322
|
|
|
$
|
24,320
|
|
|
$
|
408,122
|
|
|
$
|
68,262
|
|
|
$
|
28,875
|
|
|
$
|
4,721
|
|
|
$
|
509,980
|
|
Property operating expenses
|
(80,697
|
)
|
|
(16,938
|
)
|
|
(27,812
|
)
|
|
(12,619
|
)
|
|
(5,783
|
)
|
|
(2,709
|
)
|
|
(146,558
|
)
|
|
(28,982
|
)
|
|
(13,551
|
)
|
|
(1,873
|
)
|
|
(190,964
|
)
|
|||||||||||
UJV NOI allocable to COPT
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,805
|
|
|
4,805
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,805
|
|
|||||||||||
NOI from real estate operations
|
$
|
164,916
|
|
|
$
|
30,180
|
|
|
$
|
19,397
|
|
|
$
|
16,921
|
|
|
$
|
8,539
|
|
|
$
|
26,416
|
|
|
$
|
266,369
|
|
|
$
|
39,280
|
|
|
$
|
15,324
|
|
|
$
|
2,848
|
|
|
$
|
323,821
|
|
Additions to long-lived assets
|
$
|
26,659
|
|
|
$
|
8,115
|
|
|
$
|
71
|
|
|
$
|
8,451
|
|
|
$
|
1,056
|
|
|
$
|
—
|
|
|
$
|
44,352
|
|
|
$
|
25,299
|
|
|
$
|
3,580
|
|
|
$
|
110
|
|
|
$
|
73,341
|
|
Transfers from non-operating properties
|
$
|
43,370
|
|
|
$
|
48,328
|
|
|
$
|
—
|
|
|
$
|
474
|
|
|
$
|
2,159
|
|
|
$
|
107,854
|
|
|
$
|
202,185
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
18
|
|
|
$
|
202,211
|
|
Segment assets at December 31, 2017
|
$
|
1,263,567
|
|
|
$
|
402,076
|
|
|
$
|
128,755
|
|
|
$
|
194,476
|
|
|
$
|
108,119
|
|
|
$
|
301,996
|
|
|
$
|
2,398,989
|
|
|
$
|
400,512
|
|
|
$
|
224,422
|
|
|
$
|
4,082
|
|
|
$
|
3,028,005
|
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
Segment revenues from real estate operations
|
|
$
|
527,463
|
|
|
$
|
517,253
|
|
|
$
|
509,980
|
|
Construction contract and other service revenues
|
|
113,763
|
|
|
60,859
|
|
|
102,840
|
|
|||
Total revenues
|
|
$
|
641,226
|
|
|
$
|
578,112
|
|
|
$
|
612,820
|
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
UJV NOI allocable to COPT
|
|
$
|
5,705
|
|
|
$
|
4,818
|
|
|
$
|
4,805
|
|
Less: Income from UJV allocable to COPT attributable to depreciation and amortization expense and interest expense
|
|
(4,065
|
)
|
|
(3,314
|
)
|
|
(3,310
|
)
|
|||
Add: Equity in (loss) income of unconsolidated non-real estate entities
|
|
(7
|
)
|
|
1,193
|
|
|
(5
|
)
|
|||
Equity in income of unconsolidated entities
|
|
$
|
1,633
|
|
|
$
|
2,697
|
|
|
$
|
1,490
|
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
Construction contract and other service revenues
|
|
$
|
113,763
|
|
|
$
|
60,859
|
|
|
$
|
102,840
|
|
Construction contract and other service expenses
|
|
(109,962
|
)
|
|
(58,326
|
)
|
|
(99,618
|
)
|
|||
NOI from service operations
|
|
$
|
3,801
|
|
|
$
|
2,533
|
|
|
$
|
3,222
|
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
NOI from real estate operations
|
|
$
|
335,025
|
|
|
$
|
321,036
|
|
|
$
|
323,821
|
|
NOI from service operations
|
|
3,801
|
|
|
2,533
|
|
|
3,222
|
|
|||
Interest and other income
|
|
7,894
|
|
|
4,358
|
|
|
6,318
|
|
|||
Gain on sales of real estate
|
|
105,230
|
|
|
2,340
|
|
|
9,890
|
|
|||
Equity in income of unconsolidated entities
|
|
1,633
|
|
|
2,697
|
|
|
1,490
|
|
|||
Income tax benefit (expense)
|
|
217
|
|
|
363
|
|
|
(1,098
|
)
|
|||
Depreciation and other amortization associated with real estate operations
|
|
(137,069
|
)
|
|
(137,116
|
)
|
|
(134,228
|
)
|
|||
Impairment losses
|
|
(329
|
)
|
|
(2,367
|
)
|
|
(15,123
|
)
|
|||
General, administrative and leasing expenses
|
|
(35,402
|
)
|
|
(28,900
|
)
|
|
(30,837
|
)
|
|||
Business development expenses and land carry costs
|
|
(4,239
|
)
|
|
(5,840
|
)
|
|
(6,213
|
)
|
|||
Interest expense
|
|
(71,052
|
)
|
|
(75,385
|
)
|
|
(76,983
|
)
|
|||
Less: UJV NOI allocable to COPT included in equity in income of unconsolidated entities
|
|
(5,705
|
)
|
|
(4,818
|
)
|
|
(4,805
|
)
|
|||
Loss on early extinguishment of debt
|
|
—
|
|
|
(258
|
)
|
|
(513
|
)
|
|||
Net income
|
|
$
|
200,004
|
|
|
$
|
78,643
|
|
|
$
|
74,941
|
|
|
As of December 31,
|
||||||
|
2019
|
|
2018
|
||||
Segment assets
|
$
|
3,024,958
|
|
|
$
|
3,084,862
|
|
Operating properties lease liabilities included in segment assets
|
17,317
|
|
|
—
|
|
||
Non-operating property assets
|
621,630
|
|
|
410,671
|
|
||
Other assets
|
190,548
|
|
|
160,472
|
|
||
Total COPT consolidated assets
|
$
|
3,854,453
|
|
|
$
|
3,656,005
|
|
|
For the Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Construction contract revenue:
|
|
|
|
|
|
||||||
GMP
|
$
|
67,708
|
|
|
$
|
34,050
|
|
|
$
|
78,401
|
|
FFP
|
10,688
|
|
|
20,327
|
|
|
22,607
|
|
|||
Cost-plus fee
|
34,386
|
|
|
5,540
|
|
|
801
|
|
|||
Other
|
981
|
|
|
942
|
|
|
1,031
|
|
|||
|
$
|
113,763
|
|
|
$
|
60,859
|
|
|
$
|
102,840
|
|
|
For the Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Construction contract revenue:
|
|
|
|
|
|
||||||
Construction
|
$
|
112,170
|
|
|
$
|
57,986
|
|
|
$
|
94,471
|
|
Design
|
612
|
|
|
1,931
|
|
|
7,338
|
|
|||
Other
|
981
|
|
|
942
|
|
|
1,031
|
|
|||
|
$
|
113,763
|
|
|
$
|
60,859
|
|
|
$
|
102,840
|
|
|
For the Years Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
Beginning balance
|
$
|
6,701
|
|
|
$
|
4,577
|
|
Ending balance
|
$
|
12,378
|
|
|
$
|
6,701
|
|
|
For the Years Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
Beginning balance
|
$
|
3,189
|
|
|
$
|
4,884
|
|
Ending balance
|
$
|
17,223
|
|
|
$
|
3,189
|
|
|
For the Years Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
Beginning balance
|
$
|
568
|
|
|
$
|
27,402
|
|
Ending balance
|
$
|
1,184
|
|
|
$
|
568
|
|
Portion of beginning balance recognized in revenue during the year
|
$
|
446
|
|
|
$
|
27,296
|
|
•
|
the denominator is increased to include: (1) the weighted average number of potential additional common shares that would have been outstanding if securities that are convertible into common shares were converted; and (2) the effect of dilutive potential common shares outstanding during the period attributable to COPT’s forward equity sale agreements, redeemable noncontrolling interests and our share-based compensation using the treasury stock or if-converted methods; and
|
•
|
the numerator is adjusted to add back any changes in income or loss that would result from the assumed conversion into common shares that we add to the denominator.
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
Numerator:
|
|
|
|
|
|
|
||||||
Net income attributable to COPT
|
|
$
|
191,692
|
|
|
$
|
72,301
|
|
|
$
|
68,745
|
|
Preferred share dividends
|
|
—
|
|
|
—
|
|
|
(6,219
|
)
|
|||
Issuance costs associated with redeemed preferred shares
|
|
—
|
|
|
—
|
|
|
(6,847
|
)
|
|||
Income attributable to share-based compensation awards
|
|
(656
|
)
|
|
(462
|
)
|
|
(449
|
)
|
|||
Numerator for basic EPS on net income attributable to COPT common shareholders
|
|
$
|
191,036
|
|
|
$
|
71,839
|
|
|
$
|
55,230
|
|
Redeemable noncontrolling interests
|
|
132
|
|
|
—
|
|
|
—
|
|
|||
Income attributable to share-based compensation awards
|
|
33
|
|
|
—
|
|
|
—
|
|
|||
Numerator for diluted EPS on net income attributable to COPT common shareholders
|
|
$
|
191,201
|
|
|
$
|
71,839
|
|
|
$
|
55,230
|
|
Denominator (all weighted averages):
|
|
|
|
|
|
|
||||||
Denominator for basic EPS (common shares)
|
|
111,196
|
|
|
103,946
|
|
|
98,969
|
|
|||
Dilutive effect of redeemable noncontrolling interests
|
|
119
|
|
|
—
|
|
|
—
|
|
|||
Dilutive effect of share-based compensation awards
|
|
308
|
|
|
134
|
|
|
132
|
|
|||
Dilutive effect of forward equity sale agreements
|
|
—
|
|
|
45
|
|
|
54
|
|
|||
Denominator for diluted EPS (common shares)
|
|
111,623
|
|
|
104,125
|
|
|
99,155
|
|
|||
Basic EPS
|
|
$
|
1.72
|
|
|
$
|
0.69
|
|
|
$
|
0.56
|
|
Diluted EPS
|
|
$
|
1.71
|
|
|
$
|
0.69
|
|
|
$
|
0.56
|
|
|
|
Weighted Average Shares Excluded from Denominator for the Years Ended December 31,
|
|||||||
|
|
2019
|
|
2018
|
|
2017
|
|||
Conversion of common units
|
|
1,299
|
|
|
2,468
|
|
|
3,362
|
|
Conversion of redeemable noncontrolling interests
|
|
896
|
|
|
936
|
|
|
689
|
|
Conversion of Series I preferred units
|
|
176
|
|
|
176
|
|
|
176
|
|
•
|
weighted average shares related to COPT’s forward equity sale agreements of 376,000 for 2019;
|
•
|
weighted average restricted shares and deferred share awards of 441,000 for 2019, 452,000 for 2018 and 433,000 for 2017;
|
•
|
weighted average options of 12,000 for 2019, 42,000 for 2018 and 70,000 for 2017; and
|
•
|
weighted average unvested PIUs of 51,000 for 2019.
|
•
|
the denominator is increased to include: (1) the weighted average number of potential additional common units that would have been outstanding if securities that are convertible into our common units were converted; and (2) the effect of dilutive potential common units outstanding during the period attributable to COPT’s forward equity sale agreements, redeemable noncontrolling interests and our share-based compensation using the treasury stock or if-converted methods; and
|
•
|
the numerator is adjusted to add back any changes in income or loss that would result from the assumed conversion into common units that we add to the denominator.
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
Numerator:
|
|
|
|
|
|
|
||||||
Net income attributable to COPLP
|
|
$
|
194,619
|
|
|
$
|
74,703
|
|
|
$
|
71,295
|
|
Preferred unit distributions
|
|
(564
|
)
|
|
(660
|
)
|
|
(6,879
|
)
|
|||
Issuance costs associated with redeemed preferred units
|
|
—
|
|
|
—
|
|
|
(6,847
|
)
|
|||
Income attributable to share-based compensation awards
|
|
(785
|
)
|
|
(462
|
)
|
|
(449
|
)
|
|||
Numerator for basic EPU on net income attributable to COPLP common unitholders
|
|
193,270
|
|
|
73,581
|
|
|
57,120
|
|
|||
Redeemable noncontrolling interests
|
|
132
|
|
|
—
|
|
|
—
|
|
|||
Income attributable to share-based compensation awards
|
|
33
|
|
|
—
|
|
|
—
|
|
|||
Numerator for diluted EPU on net income attributable to COPLP common unitholders
|
|
$
|
193,435
|
|
|
$
|
73,581
|
|
|
$
|
57,120
|
|
Denominator (all weighted averages):
|
|
|
|
|
|
|
||||||
Denominator for basic EPU (common units)
|
|
112,495
|
|
|
106,414
|
|
|
102,331
|
|
|||
Dilutive effect of redeemable noncontrolling interests
|
|
119
|
|
|
—
|
|
|
—
|
|
|||
Dilutive effect of share-based compensation awards
|
|
308
|
|
|
134
|
|
|
132
|
|
|||
Dilutive effect of forward equity sale agreements
|
|
—
|
|
|
45
|
|
|
54
|
|
|||
Denominator for diluted EPU (common units)
|
|
112,922
|
|
|
106,593
|
|
|
102,517
|
|
|||
Basic EPU
|
|
$
|
1.72
|
|
|
$
|
0.69
|
|
|
$
|
0.56
|
|
Diluted EPU
|
|
$
|
1.71
|
|
|
$
|
0.69
|
|
|
$
|
0.56
|
|
|
|
Weighted Average Units Excluded from Denominator for the Years Ended December 31,
|
|||||||
|
|
2019
|
|
2018
|
|
2017
|
|||
Conversion of redeemable noncontrolling interests
|
|
896
|
|
|
936
|
|
|
689
|
|
Conversion of Series I preferred units
|
|
176
|
|
|
176
|
|
|
176
|
|
•
|
weighted average shares related to COPT’s forward equity sale agreements of 376,000 for 2019;
|
•
|
weighted average restricted units and deferred share awards of 441,000 for 2019, 452,000 for 2018 and 433,000 for 2017;
|
•
|
weighted average options of 12,000 for 2019, 42,000 for 2018 and 70,000 for 2017; and
|
•
|
weighted average unvested PIUs of 51,000 for 2019.
|
•
|
development and redevelopment obligations of $200.7 million;
|
•
|
tenant and other building improvements of $58.8 million;
|
•
|
third party construction obligations of $16.5 million; and
|
•
|
other obligations of $1.5 million.
|
|
For the Year Ended December 31, 2019
|
|
For the Year Ended December 31, 2018
|
||||||||||||||||||||||||||||
|
First Quarter
|
|
Second Quarter
|
|
Third Quarter
|
|
Fourth Quarter
|
|
First Quarter
|
|
Second Quarter
|
|
Third Quarter
|
|
Fourth Quarter
|
||||||||||||||||
COPT and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Revenues
|
$
|
148,940
|
|
|
$
|
175,070
|
|
|
$
|
159,431
|
|
|
$
|
157,785
|
|
|
$
|
155,476
|
|
|
$
|
146,743
|
|
|
$
|
137,411
|
|
|
$
|
138,482
|
|
Net income
|
$
|
22,318
|
|
|
$
|
109,563
|
|
|
$
|
23,246
|
|
|
$
|
44,877
|
|
|
$
|
18,780
|
|
|
$
|
21,085
|
|
|
$
|
20,322
|
|
|
$
|
18,456
|
|
Net income attributable to noncontrolling interests
|
(1,459
|
)
|
|
(2,772
|
)
|
|
(1,989
|
)
|
|
(2,092
|
)
|
|
(1,630
|
)
|
|
(1,651
|
)
|
|
(1,625
|
)
|
|
(1,436
|
)
|
||||||||
Net income attributable to COPT common shareholders
|
$
|
20,859
|
|
|
$
|
106,791
|
|
|
$
|
21,257
|
|
|
$
|
42,785
|
|
|
$
|
17,150
|
|
|
$
|
19,434
|
|
|
$
|
18,697
|
|
|
$
|
17,020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Basic EPS
|
$
|
0.19
|
|
|
$
|
0.95
|
|
|
$
|
0.19
|
|
|
$
|
0.38
|
|
|
$
|
0.17
|
|
|
$
|
0.19
|
|
|
$
|
0.18
|
|
|
$
|
0.16
|
|
Diluted EPS
|
$
|
0.19
|
|
|
$
|
0.95
|
|
|
$
|
0.19
|
|
|
$
|
0.38
|
|
|
$
|
0.17
|
|
|
$
|
0.19
|
|
|
$
|
0.18
|
|
|
$
|
0.16
|
|
COPLP and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Revenues
|
$
|
148,940
|
|
|
$
|
175,070
|
|
|
$
|
159,431
|
|
|
$
|
157,785
|
|
|
$
|
155,476
|
|
|
$
|
146,743
|
|
|
$
|
137,411
|
|
|
$
|
138,482
|
|
Net income
|
$
|
22,318
|
|
|
$
|
109,563
|
|
|
$
|
23,246
|
|
|
$
|
44,877
|
|
|
$
|
18,780
|
|
|
$
|
21,085
|
|
|
$
|
20,322
|
|
|
$
|
18,456
|
|
Net income attributable to noncontrolling interests
|
(1,037
|
)
|
|
(1,268
|
)
|
|
(1,565
|
)
|
|
(1,515
|
)
|
|
(921
|
)
|
|
(878
|
)
|
|
(1,080
|
)
|
|
(1,061
|
)
|
||||||||
Net income attributable to COPLP
|
21,281
|
|
|
108,295
|
|
|
21,681
|
|
|
43,362
|
|
|
17,859
|
|
|
20,207
|
|
|
19,242
|
|
|
17,395
|
|
||||||||
Preferred unit distributions
|
(165
|
)
|
|
(165
|
)
|
|
(157
|
)
|
|
(77
|
)
|
|
(165
|
)
|
|
(165
|
)
|
|
(165
|
)
|
|
(165
|
)
|
||||||||
Net income attributable to COPLP common unitholders
|
$
|
21,116
|
|
|
$
|
108,130
|
|
|
$
|
21,524
|
|
|
$
|
43,285
|
|
|
$
|
17,694
|
|
|
$
|
20,042
|
|
|
$
|
19,077
|
|
|
$
|
17,230
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Basic EPU
|
$
|
0.19
|
|
|
$
|
0.95
|
|
|
$
|
0.19
|
|
|
$
|
0.38
|
|
|
$
|
0.17
|
|
|
$
|
0.19
|
|
|
$
|
0.18
|
|
|
$
|
0.16
|
|
Diluted EPU
|
$
|
0.19
|
|
|
$
|
0.95
|
|
|
$
|
0.19
|
|
|
$
|
0.38
|
|
|
$
|
0.17
|
|
|
$
|
0.19
|
|
|
$
|
0.18
|
|
|
$
|
0.16
|
|
|
|
|
Initial Cost
|
|
Gross Amounts Carried
At Close of Period
|
|
|
|
|||||||||||||||||||
Property (Type) (1)
|
Location
|
Encumbrances (2)
|
Land
|
Building and Land Improvements
|
Costs Capitalized Subsequent to Acquisition
|
Land
|
Building and Land Improvements
|
Total (3)
|
Accumulated Depreciation (4)
|
Year Built or Renovated
|
Date Acquired (5)
|
||||||||||||||||
100 Light Street (O)
|
Baltimore, MD
|
$
|
47,529
|
|
$
|
26,715
|
|
$
|
59,177
|
|
$
|
12,989
|
|
$
|
26,715
|
|
$
|
72,166
|
|
$
|
98,881
|
|
$
|
(16,790
|
)
|
1973/2011
|
8/7/2015
|
100 Secured Gateway (O)
|
Huntsville, AL
|
—
|
|
—
|
|
25,763
|
|
—
|
|
—
|
|
25,763
|
|
25,763
|
|
—
|
|
(7)
|
3/23/2010
|
||||||||
1000 Redstone Gateway (O)
|
Huntsville, AL
|
10,035
|
|
—
|
|
20,533
|
|
5
|
|
—
|
|
20,538
|
|
20,538
|
|
(3,492
|
)
|
2013
|
3/23/2010
|
||||||||
1100 Redstone Gateway (O)
|
Huntsville, AL
|
10,598
|
|
—
|
|
19,593
|
|
6
|
|
—
|
|
19,599
|
|
19,599
|
|
(2,926
|
)
|
2014
|
3/23/2010
|
||||||||
114 National Business Parkway (O)
|
Annapolis Junction, MD
|
—
|
|
364
|
|
3,109
|
|
223
|
|
364
|
|
3,332
|
|
3,696
|
|
(1,491
|
)
|
2002
|
6/30/2000
|
||||||||
1200 Redstone Gateway (O)
|
Huntsville, AL
|
12,242
|
|
—
|
|
22,389
|
|
—
|
|
—
|
|
22,389
|
|
22,389
|
|
(3,384
|
)
|
2013
|
3/23/2010
|
||||||||
1201 M Street (O)
|
Washington, DC
|
—
|
|
—
|
|
49,785
|
|
8,879
|
|
—
|
|
58,664
|
|
58,664
|
|
(16,924
|
)
|
2001
|
9/28/2010
|
||||||||
1201 Winterson Road (O)
|
Linthicum, MD
|
—
|
|
2,130
|
|
17,007
|
|
669
|
|
2,130
|
|
17,676
|
|
19,806
|
|
(5,073
|
)
|
1985/2017
|
4/30/1998
|
||||||||
1220 12th Street, SE (O)
|
Washington, DC
|
—
|
|
—
|
|
42,464
|
|
8,093
|
|
—
|
|
50,557
|
|
50,557
|
|
(15,746
|
)
|
2003
|
9/28/2010
|
||||||||
1243 Winterson Road (L)
|
Linthicum, MD
|
—
|
|
630
|
|
—
|
|
—
|
|
630
|
|
—
|
|
630
|
|
—
|
|
(6)
|
12/19/2001
|
||||||||
131 National Business Parkway (O)
|
Annapolis Junction, MD
|
—
|
|
1,906
|
|
7,623
|
|
4,120
|
|
1,906
|
|
11,743
|
|
13,649
|
|
(7,074
|
)
|
1990
|
9/28/1998
|
||||||||
132 National Business Parkway (O)
|
Annapolis Junction, MD
|
—
|
|
2,917
|
|
12,259
|
|
4,669
|
|
2,917
|
|
16,928
|
|
19,845
|
|
(9,958
|
)
|
2000
|
5/28/1999
|
||||||||
133 National Business Parkway (O)
|
Annapolis Junction, MD
|
—
|
|
2,517
|
|
10,068
|
|
5,607
|
|
2,517
|
|
15,675
|
|
18,192
|
|
(10,005
|
)
|
1997
|
9/28/1998
|
||||||||
134 National Business Parkway (O)
|
Annapolis Junction, MD
|
—
|
|
3,684
|
|
7,517
|
|
4,952
|
|
3,684
|
|
12,469
|
|
16,153
|
|
(6,727
|
)
|
1999
|
11/13/1998
|
||||||||
1340 Ashton Road (O)
|
Hanover, MD
|
—
|
|
905
|
|
3,620
|
|
1,821
|
|
905
|
|
5,441
|
|
6,346
|
|
(3,100
|
)
|
1989
|
4/28/1999
|
||||||||
13450 Sunrise Valley Road (O)
|
Herndon, VA
|
—
|
|
1,386
|
|
5,576
|
|
4,591
|
|
1,386
|
|
10,167
|
|
11,553
|
|
(5,741
|
)
|
1998
|
7/25/2003
|
||||||||
13454 Sunrise Valley Road (O)
|
Herndon, VA
|
—
|
|
2,847
|
|
11,986
|
|
8,670
|
|
2,847
|
|
20,656
|
|
23,503
|
|
(11,121
|
)
|
1998
|
7/25/2003
|
||||||||
135 National Business Parkway (O)
|
Annapolis Junction, MD
|
—
|
|
2,484
|
|
9,750
|
|
6,196
|
|
2,484
|
|
15,946
|
|
18,430
|
|
(9,584
|
)
|
1998
|
12/30/1998
|
||||||||
1362 Mellon Road (O)
|
Hanover, MD
|
—
|
|
950
|
|
3,864
|
|
271
|
|
950
|
|
4,135
|
|
5,085
|
|
(578
|
)
|
2006
|
2/10/2006
|
||||||||
13857 McLearen Road (O)
|
Herndon, VA
|
—
|
|
3,507
|
|
30,177
|
|
4,142
|
|
3,507
|
|
34,319
|
|
37,826
|
|
(11,745
|
)
|
2007
|
7/11/2012
|
||||||||
140 National Business Parkway (O)
|
Annapolis Junction, MD
|
—
|
|
3,407
|
|
24,167
|
|
1,734
|
|
3,407
|
|
25,901
|
|
29,308
|
|
(10,247
|
)
|
2003
|
12/31/2003
|
||||||||
141 National Business Parkway (O)
|
Annapolis Junction, MD
|
—
|
|
2,398
|
|
9,538
|
|
4,828
|
|
2,398
|
|
14,366
|
|
16,764
|
|
(8,605
|
)
|
1990
|
9/28/1998
|
||||||||
14280 Park Meadow Drive (O)
|
Chantilly, VA
|
—
|
|
3,731
|
|
15,953
|
|
4,809
|
|
3,731
|
|
20,762
|
|
24,493
|
|
(8,630
|
)
|
1999
|
9/29/2004
|
||||||||
1460 Dorsey Road (L)
|
Hanover, MD
|
—
|
|
1,577
|
|
75
|
|
—
|
|
1,577
|
|
75
|
|
1,652
|
|
—
|
|
(6)
|
2/28/2006
|
||||||||
14840 Conference Center Drive (O)
|
Chantilly, VA
|
—
|
|
1,572
|
|
8,175
|
|
5,060
|
|
1,572
|
|
13,235
|
|
14,807
|
|
(6,626
|
)
|
2000
|
7/25/2003
|
||||||||
14850 Conference Center Drive (O)
|
Chantilly, VA
|
—
|
|
1,615
|
|
8,358
|
|
3,781
|
|
1,615
|
|
12,139
|
|
13,754
|
|
(6,788
|
)
|
2000
|
7/25/2003
|
||||||||
14900 Conference Center Drive (O)
|
Chantilly, VA
|
—
|
|
3,436
|
|
14,402
|
|
7,880
|
|
3,436
|
|
22,282
|
|
25,718
|
|
(12,059
|
)
|
1999
|
7/25/2003
|
||||||||
1501 South Clinton Street (O)
|
Baltimore, MD
|
—
|
|
27,964
|
|
51,990
|
|
18,470
|
|
27,964
|
|
70,460
|
|
98,424
|
|
(25,079
|
)
|
2006
|
10/27/2009
|
||||||||
15049 Conference Center Drive (O)
|
Chantilly, VA
|
—
|
|
4,415
|
|
20,365
|
|
16,525
|
|
4,415
|
|
36,890
|
|
41,305
|
|
(15,930
|
)
|
1997
|
8/14/2002
|
||||||||
15059 Conference Center Drive (O)
|
Chantilly, VA
|
—
|
|
5,753
|
|
13,615
|
|
4,190
|
|
5,753
|
|
17,805
|
|
23,558
|
|
(9,374
|
)
|
2000
|
8/14/2002
|
||||||||
1550 West Nursery Road (O)
|
Linthicum, MD
|
—
|
|
14,071
|
|
16,930
|
|
—
|
|
14,071
|
|
16,930
|
|
31,001
|
|
(5,942
|
)
|
2009
|
10/28/2009
|
||||||||
1560 West Nursery Road (O)
|
Linthicum, MD
|
—
|
|
1,441
|
|
113
|
|
—
|
|
1,441
|
|
113
|
|
1,554
|
|
(16
|
)
|
2014
|
10/28/2009
|
||||||||
1610 West Nursery Road (O)
|
Linthicum, MD
|
—
|
|
259
|
|
246
|
|
—
|
|
259
|
|
246
|
|
505
|
|
(17
|
)
|
2016
|
4/30/1998
|
|
|
|
Initial Cost
|
|
Gross Amounts Carried
At Close of Period
|
|
|
|
|||||||||||||||||||
Property (Type) (1)
|
Location
|
Encumbrances (2)
|
Land
|
Building and Land Improvements
|
Costs Capitalized Subsequent to Acquisition
|
Land
|
Building and Land Improvements
|
Total (3)
|
Accumulated Depreciation (4)
|
Year Built or Renovated
|
Date Acquired (5)
|
||||||||||||||||
1616 West Nursery Road (O)
|
Linthicum, MD
|
—
|
|
393
|
|
3,323
|
|
—
|
|
393
|
|
3,323
|
|
3,716
|
|
(183
|
)
|
2017
|
4/30/1998
|
||||||||
1622 West Nursery Road (O)
|
Linthicum, MD
|
—
|
|
393
|
|
2,542
|
|
—
|
|
393
|
|
2,542
|
|
2,935
|
|
(180
|
)
|
2016
|
4/30/1998
|
||||||||
16442 Commerce Drive (O)
|
Dahlgren, VA
|
—
|
|
613
|
|
2,582
|
|
960
|
|
613
|
|
3,542
|
|
4,155
|
|
(1,735
|
)
|
2002
|
12/21/2004
|
||||||||
16480 Commerce Drive (O)
|
Dahlgren, VA
|
—
|
|
1,856
|
|
7,425
|
|
1,894
|
|
1,856
|
|
9,319
|
|
11,175
|
|
(3,928
|
)
|
2000
|
12/28/2004
|
||||||||
16501 Commerce Drive (O)
|
Dahlgren, VA
|
—
|
|
522
|
|
2,090
|
|
1,033
|
|
522
|
|
3,123
|
|
3,645
|
|
(1,255
|
)
|
2002
|
12/21/2004
|
||||||||
16539 Commerce Drive (O)
|
Dahlgren, VA
|
—
|
|
688
|
|
2,860
|
|
2,188
|
|
688
|
|
5,048
|
|
5,736
|
|
(2,692
|
)
|
1990
|
12/21/2004
|
||||||||
16541 Commerce Drive (O)
|
Dahlgren, VA
|
—
|
|
773
|
|
3,094
|
|
2,367
|
|
773
|
|
5,461
|
|
6,234
|
|
(2,408
|
)
|
1996
|
12/21/2004
|
||||||||
16543 Commerce Drive (O)
|
Dahlgren, VA
|
—
|
|
436
|
|
1,742
|
|
802
|
|
436
|
|
2,544
|
|
2,980
|
|
(1,131
|
)
|
2002
|
12/21/2004
|
||||||||
1751 Pinnacle Drive (O)
|
McLean, VA
|
—
|
|
10,486
|
|
42,339
|
|
33,115
|
|
10,486
|
|
75,454
|
|
85,940
|
|
(35,552
|
)
|
1989/1995
|
9/23/2004
|
||||||||
1753 Pinnacle Drive (O)
|
McLean, VA
|
—
|
|
8,275
|
|
34,353
|
|
22,407
|
|
8,275
|
|
56,760
|
|
65,035
|
|
(22,899
|
)
|
1976/2004
|
9/23/2004
|
||||||||
206 Research Boulevard (O)
|
Aberdeen, MD
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2012
|
9/14/2007
|
||||||||
209 Research Boulevard (O)
|
Aberdeen, MD
|
—
|
|
134
|
|
1,711
|
|
276
|
|
134
|
|
1,987
|
|
2,121
|
|
(487
|
)
|
2010
|
9/14/2007
|
||||||||
210 Research Boulevard (O)
|
Aberdeen, MD
|
—
|
|
113
|
|
1,402
|
|
204
|
|
113
|
|
1,606
|
|
1,719
|
|
(400
|
)
|
2010
|
9/14/2007
|
||||||||
2100 L Street (O)
|
Washington, DC
|
47,068
|
|
19,024
|
|
60,822
|
|
—
|
|
19,024
|
|
60,822
|
|
79,846
|
|
—
|
|
(7)
|
8/11/2015
|
||||||||
2100 Rideout Road (O)
|
Huntsville, AL
|
—
|
|
—
|
|
6,951
|
|
2,881
|
|
—
|
|
9,832
|
|
9,832
|
|
(1,304
|
)
|
2016
|
3/23/2010
|
||||||||
22289 Exploration Drive (O)
|
Lexington Park, MD
|
—
|
|
1,422
|
|
5,719
|
|
1,924
|
|
1,422
|
|
7,643
|
|
9,065
|
|
(3,869
|
)
|
2000
|
3/24/2004
|
||||||||
22299 Exploration Drive (O)
|
Lexington Park, MD
|
—
|
|
1,362
|
|
5,791
|
|
2,911
|
|
1,362
|
|
8,702
|
|
10,064
|
|
(4,357
|
)
|
1998
|
3/24/2004
|
||||||||
22300 Exploration Drive (O)
|
Lexington Park, MD
|
—
|
|
1,094
|
|
5,038
|
|
2,729
|
|
1,094
|
|
7,767
|
|
8,861
|
|
(3,115
|
)
|
1997
|
11/9/2004
|
||||||||
22309 Exploration Drive (O)
|
Lexington Park, MD
|
—
|
|
2,243
|
|
10,419
|
|
7,986
|
|
2,243
|
|
18,405
|
|
20,648
|
|
(7,511
|
)
|
1984/1997
|
3/24/2004
|
||||||||
23535 Cottonwood Parkway (O)
|
California, MD
|
—
|
|
692
|
|
3,051
|
|
648
|
|
692
|
|
3,699
|
|
4,391
|
|
(1,861
|
)
|
1984
|
3/24/2004
|
||||||||
250 W Pratt St (O)
|
Baltimore, MD
|
—
|
|
8,057
|
|
34,588
|
|
14,833
|
|
8,057
|
|
49,421
|
|
57,478
|
|
(12,629
|
)
|
1985
|
3/19/2015
|
||||||||
2500 Riva Road (O)
|
Annapolis, MD
|
—
|
|
2,791
|
|
12,146
|
|
1
|
|
2,791
|
|
12,147
|
|
14,938
|
|
(12,146
|
)
|
2000
|
3/4/2003
|
||||||||
2600 Park Tower Drive (O)
|
Vienna, VA
|
—
|
|
20,293
|
|
34,443
|
|
1,859
|
|
20,293
|
|
36,302
|
|
56,595
|
|
(5,932
|
)
|
1999
|
4/15/2015
|
||||||||
2691 Technology Drive (O)
|
Annapolis Junction, MD
|
—
|
|
2,098
|
|
17,334
|
|
5,565
|
|
2,098
|
|
22,899
|
|
24,997
|
|
(11,271
|
)
|
2005
|
5/26/2000
|
||||||||
2701 Technology Drive (O)
|
Annapolis Junction, MD
|
—
|
|
1,737
|
|
15,266
|
|
5,530
|
|
1,737
|
|
20,796
|
|
22,533
|
|
(11,505
|
)
|
2001
|
5/26/2000
|
||||||||
2711 Technology Drive (O)
|
Annapolis Junction, MD
|
—
|
|
2,251
|
|
21,611
|
|
2,847
|
|
2,251
|
|
24,458
|
|
26,709
|
|
(12,920
|
)
|
2002
|
11/13/2000
|
||||||||
2720 Technology Drive (O)
|
Annapolis Junction, MD
|
—
|
|
3,863
|
|
29,272
|
|
2,167
|
|
3,863
|
|
31,439
|
|
35,302
|
|
(12,354
|
)
|
2004
|
1/31/2002
|
||||||||
2721 Technology Drive (O)
|
Annapolis Junction, MD
|
—
|
|
4,611
|
|
14,597
|
|
3,205
|
|
4,611
|
|
17,802
|
|
22,413
|
|
(9,741
|
)
|
2000
|
10/21/1999
|
||||||||
2730 Hercules Road (O)
|
Annapolis Junction, MD
|
—
|
|
8,737
|
|
31,612
|
|
8,709
|
|
8,737
|
|
40,321
|
|
49,058
|
|
(21,502
|
)
|
1990
|
9/28/1998
|
||||||||
30 Light Street (O)
|
Baltimore, MD
|
3,998
|
|
—
|
|
12,101
|
|
867
|
|
—
|
|
12,968
|
|
12,968
|
|
(1,503
|
)
|
2009
|
8/7/2015
|
||||||||
300 Sentinel Drive (O)
|
Annapolis Junction, MD
|
—
|
|
1,517
|
|
59,165
|
|
1,756
|
|
1,517
|
|
60,921
|
|
62,438
|
|
(14,803
|
)
|
2009
|
11/14/2003
|
||||||||
302 Sentinel Drive (O)
|
Annapolis Junction, MD
|
—
|
|
2,648
|
|
29,687
|
|
901
|
|
2,648
|
|
30,588
|
|
33,236
|
|
(9,224
|
)
|
2007
|
11/14/2003
|
||||||||
304 Sentinel Drive (O)
|
Annapolis Junction, MD
|
—
|
|
3,411
|
|
24,917
|
|
1,966
|
|
3,411
|
|
26,883
|
|
30,294
|
|
(9,807
|
)
|
2005
|
11/14/2003
|
||||||||
306 Sentinel Drive (O)
|
Annapolis Junction, MD
|
—
|
|
3,260
|
|
22,592
|
|
2,487
|
|
3,260
|
|
25,079
|
|
28,339
|
|
(8,174
|
)
|
2006
|
11/14/2003
|
||||||||
308 Sentinel Drive (O)
|
Annapolis Junction, MD
|
—
|
|
1,422
|
|
26,208
|
|
2,354
|
|
1,422
|
|
28,562
|
|
29,984
|
|
(6,123
|
)
|
2010
|
11/14/2003
|
||||||||
310 Sentinel Way (O)
|
Annapolis Junction, MD
|
—
|
|
2,372
|
|
41,160
|
|
—
|
|
2,372
|
|
41,160
|
|
43,532
|
|
(3,968
|
)
|
2016
|
11/14/2003
|
||||||||
310 The Bridge Street (O)
|
Huntsville, AL
|
—
|
|
261
|
|
26,531
|
|
4,916
|
|
261
|
|
31,447
|
|
31,708
|
|
(9,962
|
)
|
2009
|
8/9/2011
|
||||||||
312 Sentinel Way (O)
|
Annapolis Junction, MD
|
—
|
|
3,138
|
|
27,797
|
|
—
|
|
3,138
|
|
27,797
|
|
30,935
|
|
(3,694
|
)
|
2014
|
11/14/2003
|
|
|
|
Initial Cost
|
|
Gross Amounts Carried
At Close of Period
|
|
|
|
|||||||||||||||||||
Property (Type) (1)
|
Location
|
Encumbrances (2)
|
Land
|
Building and Land Improvements
|
Costs Capitalized Subsequent to Acquisition
|
Land
|
Building and Land Improvements
|
Total (3)
|
Accumulated Depreciation (4)
|
Year Built or Renovated
|
Date Acquired (5)
|
||||||||||||||||
6760 Alexander Bell Drive (O)
|
Columbia, MD
|
—
|
|
890
|
|
3,561
|
|
3,901
|
|
890
|
|
7,462
|
|
8,352
|
|
(4,585
|
)
|
1991
|
12/31/1998
|
||||||||
6940 Columbia Gateway Drive (O)
|
Columbia, MD
|
—
|
|
3,545
|
|
9,916
|
|
7,974
|
|
3,545
|
|
17,890
|
|
21,435
|
|
(9,882
|
)
|
1999
|
11/13/1998
|
||||||||
6950 Columbia Gateway Drive (O)
|
Columbia, MD
|
—
|
|
3,596
|
|
26,846
|
|
3,220
|
|
3,596
|
|
30,066
|
|
33,662
|
|
(11,307
|
)
|
1998/2019 (7)
|
10/22/1998
|
||||||||
7000 Columbia Gateway Drive (O)
|
Columbia, MD
|
—
|
|
3,131
|
|
12,103
|
|
7,443
|
|
3,131
|
|
19,546
|
|
22,677
|
|
(8,231
|
)
|
1999
|
5/31/2002
|
||||||||
7005 Columbia Gateway Drive (L)
|
Columbia, MD
|
—
|
|
3,036
|
|
747
|
|
—
|
|
3,036
|
|
747
|
|
3,783
|
|
—
|
|
(6)
|
6/26/2014
|
||||||||
7015 Albert Einstein Drive (O)
|
Columbia, MD
|
—
|
|
2,058
|
|
6,093
|
|
3,319
|
|
2,058
|
|
9,412
|
|
11,470
|
|
(4,165
|
)
|
1999
|
12/1/2005
|
||||||||
7061 Columbia Gateway Drive (O)
|
Columbia, MD
|
—
|
|
729
|
|
3,094
|
|
2,379
|
|
729
|
|
5,473
|
|
6,202
|
|
(3,215
|
)
|
2000
|
8/30/2001
|
||||||||
7063 Columbia Gateway Drive (O)
|
Columbia, MD
|
—
|
|
902
|
|
3,684
|
|
3,416
|
|
902
|
|
7,100
|
|
8,002
|
|
(4,004
|
)
|
2000
|
8/30/2001
|
||||||||
7065 Columbia Gateway Drive (O)
|
Columbia, MD
|
—
|
|
919
|
|
3,763
|
|
3,095
|
|
919
|
|
6,858
|
|
7,777
|
|
(4,428
|
)
|
2000
|
8/30/2001
|
||||||||
7067 Columbia Gateway Drive (O)
|
Columbia, MD
|
—
|
|
1,829
|
|
11,823
|
|
5,116
|
|
1,829
|
|
16,939
|
|
18,768
|
|
(8,069
|
)
|
2001
|
8/30/2001
|
||||||||
7125 Columbia Gateway Drive (O)
|
Columbia, MD
|
—
|
|
20,487
|
|
46,994
|
|
21,053
|
|
20,487
|
|
68,047
|
|
88,534
|
|
(25,351
|
)
|
1973/1999
|
6/29/2006
|
||||||||
7130 Columbia Gateway Drive (O)
|
Columbia, MD
|
—
|
|
1,350
|
|
4,359
|
|
2,859
|
|
1,350
|
|
7,218
|
|
8,568
|
|
(3,621
|
)
|
1989
|
9/19/2005
|
||||||||
7134 Columbia Gateway Drive (O)
|
Columbia, MD
|
—
|
|
704
|
|
4,700
|
|
436
|
|
704
|
|
5,136
|
|
5,840
|
|
(1,666
|
)
|
1990/2016
|
9/19/2005
|
||||||||
7138 Columbia Gateway Drive (O)
|
Columbia, MD
|
—
|
|
1,104
|
|
3,518
|
|
2,843
|
|
1,104
|
|
6,361
|
|
7,465
|
|
(3,864
|
)
|
1990
|
9/19/2005
|
||||||||
7142 Columbia Gateway Drive (O)
|
Columbia, MD
|
—
|
|
1,342
|
|
7,148
|
|
2,608
|
|
1,342
|
|
9,756
|
|
11,098
|
|
(3,516
|
)
|
1994/2018
|
9/19/2005
|
||||||||
7150 Columbia Gateway Drive (O)
|
Columbia, MD
|
—
|
|
1,032
|
|
3,429
|
|
813
|
|
1,032
|
|
4,242
|
|
5,274
|
|
(1,673
|
)
|
1991
|
9/19/2005
|
||||||||
7150 Riverwood Drive (O)
|
Columbia, MD
|
—
|
|
1,821
|
|
4,388
|
|
1,854
|
|
1,821
|
|
6,242
|
|
8,063
|
|
(2,799
|
)
|
2000
|
1/10/2007
|
||||||||
7160 Riverwood Drive (O)
|
Columbia, MD
|
—
|
|
2,732
|
|
7,006
|
|
3,124
|
|
2,732
|
|
10,130
|
|
12,862
|
|
(4,336
|
)
|
2000
|
1/10/2007
|
||||||||
7170 Riverwood Drive (O)
|
Columbia, MD
|
—
|
|
1,283
|
|
3,096
|
|
2,243
|
|
1,283
|
|
5,339
|
|
6,622
|
|
(2,295
|
)
|
2000
|
1/10/2007
|
||||||||
7175 Riverwood Drive (O)
|
Columbia, MD
|
—
|
|
1,788
|
|
7,269
|
|
—
|
|
1,788
|
|
7,269
|
|
9,057
|
|
(1,116
|
)
|
1996/2013
|
7/27/2005
|
||||||||
7200 Redstone Gateway (O)
|
Huntsville, AL
|
5,932
|
|
—
|
|
8,348
|
|
88
|
|
—
|
|
8,436
|
|
8,436
|
|
(1,175
|
)
|
2013
|
3/23/2010
|
||||||||
7200 Riverwood Drive (O)
|
Columbia, MD
|
—
|
|
4,089
|
|
22,630
|
|
4,538
|
|
4,089
|
|
27,168
|
|
31,257
|
|
(11,823
|
)
|
1986
|
10/13/1998
|
||||||||
7205 Riverwood Drive (O)
|
Columbia, MD
|
—
|
|
1,367
|
|
21,419
|
|
—
|
|
1,367
|
|
21,419
|
|
22,786
|
|
(3,452
|
)
|
2013
|
7/27/2005
|
||||||||
7272 Park Circle Drive (O)
|
Hanover, MD
|
—
|
|
1,479
|
|
6,300
|
|
4,578
|
|
1,479
|
|
10,878
|
|
12,357
|
|
(4,955
|
)
|
1991/1996
|
1/10/2007
|
||||||||
7318 Parkway Drive (O)
|
Hanover, MD
|
—
|
|
972
|
|
3,888
|
|
1,319
|
|
972
|
|
5,207
|
|
6,179
|
|
(2,740
|
)
|
1984
|
4/16/1999
|
||||||||
7400 Redstone Gateway (O)
|
Huntsville, AL
|
6,506
|
|
—
|
|
9,223
|
|
82
|
|
—
|
|
9,305
|
|
9,305
|
|
(1,044
|
)
|
2015
|
3/23/2010
|
||||||||
7467 Ridge Road (O)
|
Hanover, MD
|
—
|
|
1,565
|
|
3,116
|
|
4,954
|
|
1,565
|
|
8,070
|
|
9,635
|
|
(3,456
|
)
|
1990
|
4/28/1999
|
||||||||
7500 Advanced Gateway (O)
|
Huntsville, AL
|
—
|
|
—
|
|
7,195
|
|
—
|
|
—
|
|
7,195
|
|
7,195
|
|
—
|
|
(7)
|
3/23/2010
|
||||||||
7600 Advanced Gateway (O)
|
Huntsville, AL
|
—
|
|
—
|
|
2,543
|
|
—
|
|
—
|
|
2,543
|
|
2,543
|
|
—
|
|
(7)
|
3/23/2010
|
||||||||
7740 Milestone Parkway (O)
|
Hanover, MD
|
17,352
|
|
3,825
|
|
34,176
|
|
1,009
|
|
3,825
|
|
35,185
|
|
39,010
|
|
(8,311
|
)
|
2009
|
7/2/2007
|
||||||||
7770 Backlick Road (O)
|
Springfield, VA
|
—
|
|
6,387
|
|
76,663
|
|
283
|
|
6,387
|
|
76,946
|
|
83,333
|
|
(12,966
|
)
|
2012
|
3/10/2010
|
||||||||
7880 Milestone Parkway (O)
|
Hanover, MD
|
—
|
|
4,857
|
|
25,913
|
|
247
|
|
4,857
|
|
26,160
|
|
31,017
|
|
(2,695
|
)
|
2015
|
9/17/2013
|
||||||||
8000 Rideout Road (O)
|
Huntsville, AL
|
—
|
|
—
|
|
2,564
|
|
—
|
|
—
|
|
2,564
|
|
2,564
|
|
—
|
|
(7)
|
3/23/2010
|
||||||||
8600 Advanced Gateway (O)
|
Huntsville, AL
|
—
|
|
—
|
|
4,931
|
|
—
|
|
—
|
|
4,931
|
|
4,931
|
|
—
|
|
(7)
|
3/23/2010
|
||||||||
8621 Robert Fulton Drive (O)
|
Columbia, MD
|
—
|
|
2,317
|
|
12,642
|
|
6,428
|
|
2,317
|
|
19,070
|
|
21,387
|
|
(5,755
|
)
|
2005-2006
|
6/10/2005
|
||||||||
8661 Robert Fulton Drive (O)
|
Columbia, MD
|
—
|
|
1,510
|
|
3,764
|
|
2,956
|
|
1,510
|
|
6,720
|
|
8,230
|
|
(3,240
|
)
|
2002
|
12/30/2003
|
||||||||
8671 Robert Fulton Drive (O)
|
Columbia, MD
|
—
|
|
1,718
|
|
4,280
|
|
4,306
|
|
1,718
|
|
8,586
|
|
10,304
|
|
(4,366
|
)
|
2002
|
12/30/2003
|
||||||||
870 Elkridge Landing Road (O)
|
Linthicum, MD
|
—
|
|
2,003
|
|
9,442
|
|
9,333
|
|
2,003
|
|
18,775
|
|
20,778
|
|
(10,533
|
)
|
1981
|
8/3/2001
|
|
|
|
Initial Cost
|
|
Gross Amounts Carried
At Close of Period
|
|
|
|
|||||||||||||||||||
Property (Type) (1)
|
Location
|
Encumbrances (2)
|
Land
|
Building and Land Improvements
|
Costs Capitalized Subsequent to Acquisition
|
Land
|
Building and Land Improvements
|
Total (3)
|
Accumulated Depreciation (4)
|
Year Built or Renovated
|
Date Acquired (5)
|
||||||||||||||||
8800 Redstone Gateway (O)
|
Huntsville, AL
|
—
|
|
—
|
|
17,730
|
|
—
|
|
—
|
|
17,730
|
|
17,730
|
|
(58
|
)
|
2019
|
3/23/2010
|
||||||||
891 Elkridge Landing Road (O)
|
Linthicum, MD
|
—
|
|
1,165
|
|
4,772
|
|
3,483
|
|
1,165
|
|
8,255
|
|
9,420
|
|
(4,921
|
)
|
1984
|
7/2/2001
|
||||||||
901 Elkridge Landing Road (O)
|
Linthicum, MD
|
—
|
|
1,156
|
|
4,437
|
|
3,864
|
|
1,156
|
|
8,301
|
|
9,457
|
|
(4,321
|
)
|
1984
|
7/2/2001
|
||||||||
911 Elkridge Landing Road (O)
|
Linthicum, MD
|
—
|
|
1,215
|
|
4,861
|
|
2,970
|
|
1,215
|
|
7,831
|
|
9,046
|
|
(4,481
|
)
|
1985
|
4/30/1998
|
||||||||
938 Elkridge Landing Road (O)
|
Linthicum, MD
|
—
|
|
922
|
|
4,748
|
|
1,516
|
|
922
|
|
6,264
|
|
7,186
|
|
(3,022
|
)
|
1984
|
7/2/2001
|
||||||||
939 Elkridge Landing Road (O)
|
Linthicum, MD
|
—
|
|
939
|
|
3,756
|
|
4,438
|
|
939
|
|
8,194
|
|
9,133
|
|
(5,028
|
)
|
1983
|
4/30/1998
|
||||||||
9651 Hornbaker Road (D)
|
Manassas, VA
|
—
|
|
6,050
|
|
250,355
|
|
5,582
|
|
6,050
|
|
255,937
|
|
261,987
|
|
(61,123
|
)
|
2010
|
9/14/2010
|
||||||||
Arundel Preserve (L)
|
Hanover, MD
|
—
|
|
13,352
|
|
9,683
|
|
—
|
|
13,352
|
|
9,683
|
|
23,035
|
|
—
|
|
(6)
|
7/2/2007
|
||||||||
BLC 1 (O)
|
Northern Virginia
|
—
|
|
12,026
|
|
18,175
|
|
—
|
|
12,026
|
|
18,175
|
|
30,201
|
|
(696
|
)
|
2018
|
12/28/2017
|
||||||||
BLC 2 (O)
|
Northern Virginia
|
—
|
|
12,026
|
|
17,929
|
|
—
|
|
12,026
|
|
17,929
|
|
29,955
|
|
(655
|
)
|
2018
|
12/28/2017
|
||||||||
Canton Crossing Land (L)
|
Baltimore, MD
|
—
|
|
17,285
|
|
8,322
|
|
—
|
|
17,285
|
|
8,322
|
|
25,607
|
|
—
|
|
(6)
|
10/27/2009
|
||||||||
Canton Crossing Util Distr Ctr (O)
|
Baltimore, MD
|
—
|
|
6,100
|
|
10,450
|
|
1,727
|
|
6,100
|
|
12,177
|
|
18,277
|
|
(5,651
|
)
|
2006
|
10/27/2009
|
||||||||
Columbia Gateway - Southridge (L)
|
Columbia, MD
|
—
|
|
6,387
|
|
3,722
|
|
—
|
|
6,387
|
|
3,722
|
|
10,109
|
|
—
|
|
(6)
|
9/20/2004
|
||||||||
Dahlgren Technology Center (L)
|
Dahlgren, VA
|
—
|
|
978
|
|
178
|
|
—
|
|
978
|
|
178
|
|
1,156
|
|
—
|
|
(6)
|
3/16/2005
|
||||||||
Expedition VII (L)
|
Lexington Park, MD
|
—
|
|
705
|
|
730
|
|
—
|
|
705
|
|
730
|
|
1,435
|
|
—
|
|
(6)
|
3/24/2004
|
||||||||
IN 1 (O)
|
Northern Virginia
|
—
|
|
1,815
|
|
15,955
|
|
—
|
|
1,815
|
|
15,955
|
|
17,770
|
|
(336
|
)
|
2019
|
8/31/2016
|
||||||||
IN 2 (O)
|
Northern Virginia
|
—
|
|
2,627
|
|
28,527
|
|
—
|
|
2,627
|
|
28,527
|
|
31,154
|
|
(364
|
)
|
2019
|
8/31/2016
|
||||||||
M Square Research Park (L)
|
College Park, MD
|
—
|
|
—
|
|
1,632
|
|
—
|
|
—
|
|
1,632
|
|
1,632
|
|
—
|
|
(6)
|
1/29/2008
|
||||||||
MP 1 (O)
|
Northern Virginia
|
—
|
|
9,426
|
|
29,508
|
|
—
|
|
9,426
|
|
29,508
|
|
38,934
|
|
(490
|
)
|
2019
|
11/20/2017
|
||||||||
MP 2 (O)
|
Northern Virginia
|
—
|
|
9,426
|
|
28,843
|
|
—
|
|
9,426
|
|
28,843
|
|
38,269
|
|
(685
|
)
|
2018
|
11/20/2017
|
||||||||
MR Land (L)
|
Northern Virginia
|
—
|
|
9,038
|
|
407
|
|
—
|
|
9,038
|
|
407
|
|
9,445
|
|
—
|
|
(6)
|
11/8/2018
|
||||||||
National Business Park North (L)
|
Annapolis Junction, MD
|
—
|
|
28,843
|
|
46,879
|
|
—
|
|
28,843
|
|
46,879
|
|
75,722
|
|
—
|
|
(6)
|
6/29/2006
|
||||||||
North Gate Business Park (L)
|
Aberdeen, MD
|
—
|
|
1,755
|
|
5
|
|
—
|
|
1,755
|
|
5
|
|
1,760
|
|
—
|
|
(6)
|
9/14/2007
|
||||||||
Northwest Crossroads (L)
|
San Antonio, TX
|
—
|
|
7,430
|
|
847
|
|
—
|
|
7,430
|
|
847
|
|
8,277
|
|
—
|
|
(6)
|
1/20/2006
|
||||||||
NOVA Office A (O) (8)
|
Chantilly, VA
|
—
|
|
2,096
|
|
46,849
|
|
—
|
|
2,096
|
|
46,849
|
|
48,945
|
|
(5,751
|
)
|
2015
|
7/18/2002
|
||||||||
NOVA Office B (O) (8)
|
Chantilly, VA
|
—
|
|
739
|
|
38,376
|
|
—
|
|
739
|
|
38,376
|
|
39,115
|
|
(2,754
|
)
|
2016
|
7/18/2002
|
||||||||
NOVA Office C (O) (8)
|
Chantilly, VA
|
—
|
|
5,604
|
|
9,191
|
|
—
|
|
5,604
|
|
9,191
|
|
14,795
|
|
—
|
|
(7)
|
7/18/2002
|
||||||||
NOVA Office D (O) (8)
|
Chantilly, VA
|
—
|
|
6,587
|
|
40,518
|
|
—
|
|
6,587
|
|
40,518
|
|
47,105
|
|
(2,433
|
)
|
2017
|
7/2/2013
|
||||||||
Oak Grove A (O)
|
Northern Virginia
|
—
|
|
12,866
|
|
16,554
|
|
—
|
|
12,866
|
|
16,554
|
|
29,420
|
|
—
|
|
(7)
|
11/1/2018
|
||||||||
Oak Grove B (O)
|
Northern Virginia
|
—
|
|
12,866
|
|
26,518
|
|
—
|
|
12,866
|
|
26,518
|
|
39,384
|
|
—
|
|
2019
|
11/1/2018
|
||||||||
Oak Grove Phase II (L)
|
Northern Virginia
|
—
|
|
23,483
|
|
8,942
|
|
—
|
|
23,483
|
|
8,942
|
|
32,425
|
|
—
|
|
(6)
|
11/1/2018
|
||||||||
Old Annapolis Road (O)
|
Columbia, MD
|
—
|
|
1,637
|
|
5,500
|
|
6,710
|
|
1,637
|
|
12,210
|
|
13,847
|
|
(4,380
|
)
|
1974/1985
|
12/14/2000
|
||||||||
P2 A (O)
|
Northern Virginia
|
—
|
|
19,514
|
|
27,096
|
|
—
|
|
19,514
|
|
27,096
|
|
46,610
|
|
—
|
|
(7)
|
5/2/2019
|
||||||||
P2 B (O)
|
Northern Virginia
|
—
|
|
25,621
|
|
6,494
|
|
—
|
|
25,621
|
|
6,494
|
|
32,115
|
|
—
|
|
(7)
|
5/2/2019
|
||||||||
P2 C (O)
|
Northern Virginia
|
—
|
|
17,137
|
|
1,591
|
|
—
|
|
17,137
|
|
1,591
|
|
18,728
|
|
—
|
|
(7)
|
5/2/2019
|
||||||||
Paragon Park (L)
|
Northern Virginia
|
—
|
|
—
|
|
78
|
|
—
|
|
—
|
|
78
|
|
78
|
|
—
|
|
(6)
|
5/8/2017
|
||||||||
Patriot Ridge (L)
|
Springfield, VA
|
—
|
|
18,517
|
|
14,530
|
|
—
|
|
18,517
|
|
14,530
|
|
33,047
|
|
—
|
|
(6)
|
3/10/2010
|
||||||||
Project EX (O) (9)
|
Confidential-USA
|
—
|
|
8,959
|
|
16,525
|
|
—
|
|
8,959
|
|
16,525
|
|
25,484
|
|
(279
|
)
|
2018
|
7/16/2008
|
|
|
|
Initial Cost
|
|
Gross Amounts Carried
At Close of Period
|
|
|
|
|||||||||||||||||||
Property (Type) (1)
|
Location
|
Encumbrances (2)
|
Land
|
Building and Land Improvements
|
Costs Capitalized Subsequent to Acquisition
|
Land
|
Building and Land Improvements
|
Total (3)
|
Accumulated Depreciation (4)
|
Year Built or Renovated
|
Date Acquired (5)
|
||||||||||||||||
Redstone Gateway (L)
|
Huntsville, AL
|
—
|
|
—
|
|
21,472
|
|
—
|
|
—
|
|
21,472
|
|
21,472
|
|
—
|
|
(6)
|
3/23/2010
|
||||||||
Sentry Gateway (L)
|
San Antonio, TX
|
—
|
|
4,052
|
|
1,833
|
|
—
|
|
4,052
|
|
1,833
|
|
5,885
|
|
—
|
|
(6)
|
3/30/2005
|
||||||||
Sentry Gateway - T (O)
|
San Antonio, TX
|
—
|
|
14,020
|
|
38,804
|
|
13
|
|
14,020
|
|
38,817
|
|
52,837
|
|
(12,502
|
)
|
1982/2008
|
3/30/2005
|
||||||||
Sentry Gateway - V (O)
|
San Antonio, TX
|
—
|
|
—
|
|
1,066
|
|
—
|
|
—
|
|
1,066
|
|
1,066
|
|
(295
|
)
|
2007
|
3/30/2005
|
||||||||
Sentry Gateway - W (O)
|
San Antonio, TX
|
—
|
|
—
|
|
1,884
|
|
71
|
|
—
|
|
1,955
|
|
1,955
|
|
(496
|
)
|
2009
|
3/30/2005
|
||||||||
Sentry Gateway - X (O)
|
San Antonio, TX
|
—
|
|
1,964
|
|
21,178
|
|
—
|
|
1,964
|
|
21,178
|
|
23,142
|
|
(4,846
|
)
|
2010
|
1/20/2006
|
||||||||
Sentry Gateway - Y (O)
|
San Antonio, TX
|
—
|
|
1,964
|
|
21,298
|
|
—
|
|
1,964
|
|
21,298
|
|
23,262
|
|
(4,875
|
)
|
2010
|
1/20/2006
|
||||||||
Sentry Gateway - Z (O)
|
San Antonio, TX
|
—
|
|
1,964
|
|
30,573
|
|
—
|
|
1,964
|
|
30,573
|
|
32,537
|
|
(3,673
|
)
|
2015
|
6/14/2005
|
||||||||
SP Manassas (L)
|
Manassas, VA
|
—
|
|
8,156
|
|
94
|
|
—
|
|
8,156
|
|
94
|
|
8,250
|
|
—
|
|
(6)
|
2/6/2015
|
||||||||
Westfields - Park Center (L)
|
Chantilly, VA
|
—
|
|
10,815
|
|
6,019
|
|
—
|
|
10,815
|
|
6,019
|
|
16,834
|
|
—
|
|
(6)
|
7/2/2013
|
||||||||
Westfields Corporate Center (L)
|
Chantilly, VA
|
—
|
|
7,141
|
|
1,576
|
|
—
|
|
7,141
|
|
1,576
|
|
8,717
|
|
—
|
|
(6)
|
1/27/2005
|
||||||||
Other Developments, including intercompany eliminations (V)
|
Various
|
—
|
|
—
|
|
530
|
|
258
|
|
—
|
|
788
|
|
788
|
|
(79
|
)
|
Various
|
Various
|
||||||||
|
|
$
|
214,546
|
|
$
|
735,948
|
|
$
|
3,124,706
|
|
$
|
487,352
|
|
$
|
735,948
|
|
$
|
3,612,058
|
|
$
|
4,348,006
|
|
$
|
(1,007,120
|
)
|
|
|
(1)
|
A legend for the Property Type follows: (O) = Office or Data Center Shell Property; (L) = Land held or pre-development; (D) = Wholesale Data Center; and (V) = Various.
|
(2)
|
Excludes our Revolving Credit Facility of $177.0 million, term loan facilities of $248.7 million, unsecured senior notes of $1.2 billion, unsecured notes payable of $1.0 million, and deferred financing costs, net of premiums, on the remaining loans of $3.1 million.
|
(3)
|
The aggregate cost of these assets for Federal income tax purposes was approximately $3.4 billion as of December 31, 2019.
|
(4)
|
The estimated lives over which depreciation is recognized follow: Building and land improvements: 10-40 years; and tenant improvements: related lease terms.
|
(5)
|
The acquisition date of multi-parcel properties reflects the date of the earliest parcel acquisition. The acquisition date of properties owned through real estate joint ventures reflects the date of the formation of the joint venture.
|
(6)
|
Held as of December 31, 2019.
|
(7)
|
Under development or redevelopment as of December 31, 2019.
|
(8)
|
The carrying amounts of these properties exclude allocated costs of the garage being constructed to support the properties.
|
(9)
|
This property represents land under a long-term contract.
|
|
|
|
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
Beginning balance
|
|
|
$
|
4,148,529
|
|
|
$
|
3,980,813
|
|
|
$
|
3,874,715
|
|
||
|
Improvements and other additions
|
|
|
480,418
|
|
|
224,524
|
|
|
259,548
|
|
|||||
|
Sales (1)
|
|
|
(242,497
|
)
|
|
(53,547
|
)
|
|
(138,216
|
)
|
|||||
|
Impairments
|
|
|
(329
|
)
|
|
(2,493
|
)
|
|
(15,116
|
)
|
|||||
|
Other dispositions
|
|
|
(340
|
)
|
|
(768
|
)
|
|
(118
|
)
|
|||||
|
Reclassification to right-of use asset
|
|
|
(37,775
|
)
|
|
—
|
|
|
—
|
|
|||||
|
Ending balance
|
|
|
$
|
4,348,006
|
|
|
$
|
4,148,529
|
|
|
$
|
3,980,813
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||
The following table summarizes our changes in accumulated depreciation for the same time periods (in thousands):
|
||||||||||||||||
|
|
|
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
Beginning balance
|
|
|
$
|
897,903
|
|
|
$
|
801,038
|
|
|
$
|
715,951
|
|
||
|
Depreciation expense
|
|
|
117,973
|
|
|
112,610
|
|
|
107,772
|
|
|||||
|
Sales (1)
|
|
|
(8,416
|
)
|
|
(14,845
|
)
|
|
(22,567
|
)
|
|||||
|
Impairments
|
|
|
—
|
|
|
(132
|
)
|
|
—
|
|
|||||
|
Other dispositions
|
|
|
(340
|
)
|
|
(768
|
)
|
|
(118
|
)
|
|||||
|
Ending balance
|
|
|
$
|
1,007,120
|
|
|
$
|
897,903
|
|
|
$
|
801,038
|
|
||
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes our sale, through a series of transactions, of ownership interests in data center shells through a newly-formed unconsolidated real estate joint venture in 2019, as described in Note 4 to our consolidated financial statements.
|
General
|
We are authorized by the Declaration of Trust to issue up to 150,000,000 common shares of beneficial interest, par value $0.01 per share (the “Common Shares”) and 25,000,000 preferred shares of beneficial interest, par value $0.01 per share (the “Preferred Shares”).
|
Dividends
|
Our Board of Trustees (the “Board”) may from time to time authorize and declare to shareholders such dividends or distributions, in cash or other assets of COPT or in securities of COPT or from any other source as the Board in its discretion shall determine. The Board shall endeavor to declare and pay such dividends and distributions as shall be necessary for COPT to qualify as a real estate investment trust under the Internal Revenue Code; however, shareholders shall have no right to any dividend or distribution unless and until authorized and declared by the Board.
|
Voting Rights
|
Each holder of the Common Shares is entitled to one vote on each matter upon which holders of Common Shares are entitled to vote. A matter that properly comes before a meeting of shareholders at which a quorum is present shall be approved if a majority of all votes cast at such meeting are voted in favor of such matter, unless a greater or different vote is required by statute, any applicable law or regulation, the rights of any authorized class of shares of beneficial interest, or the Declaration of Trust or Bylaws. Other than in a contested election where trustees are elected by a plurality vote, a nominee for trustee shall be elected to the Board if such nominee receives the affirmative vote of a majority of the total votes cast for and against such nominee. Subject to any rights of the holders of any series of Preferred Shares pursuant to applicable law or the provision of the articles supplementary creating that series, all voting rights are vested in the holders of the Common Shares.
|
Rights Upon Liquidation
|
In the event of our voluntary or involuntary liquidation, dissolution or winding up, holders of the Common Shares shall be, after the setting apart for payment of such preferential amounts, if any, to which the holders of any Preferred Shares at the time outstanding shall be entitled, entitled to share ratably in any of our property available for distribution after the payment or adequate provision for the payment of all our liabilities, and upon receipt of such releases, indemnities and agreements as we deem necessary for protection of our shareholders.
|
Other Rights
|
Holders of Common Shares are not entitled to preemptive, conversion or redemption rights. There are no sinking fund provisions applicable to shares of the Common Shares. All outstanding Common Shares are fully paid and nonassessable.
|
No Restrictions on Transfer
|
Neither the Declaration of Trust nor the Bylaw contains any restrictions on the transfer of the Common Shares. In the case of any transfer of shares, there may be restrictions imposed by applicable securities laws.
|
No Classification of the Board
|
The Board is not classified and as such all trustees are elected for terms of one year. Certain provisions of the Maryland Statutes allow a board to be divided into classes without a shareholder vote. However, we have opted out of the ability to do so, and can only divide the Board into classes if approved by the affirmative vote of a majority of the votes cast on the matter by shareholders entitled to vote generally in the election of trustees.
|
Share Ownership Limit
|
The Declaration of Trust limits ownership of the Common Shares by any single shareholder to 9.8% of the number of the outstanding Common Shares or 9.8% of the value of the outstanding Common Shares, whichever is more restrictive. The Declaration of Trust also limits ownership by any single shareholder of the Common Shares and Preferred Shares in the aggregate to 9.8% of the aggregate value of the outstanding Common Shares and Preferred Shares. We refer to these restrictions together as the “Ownership Limit.” The Declaration of Trust allows the Board to exempt shareholders from the Ownership Limit. The Ownership Limit and the restrictions on ownership of the Common Shares may delay or prevent a transaction or a change of control that might involve a premium price for the Common Shares or otherwise be in the best interest of our shareholders.
|
Preferred Shares
|
The Board is authorized, without further action by our shareholders, to issue up to 25,000,000 Preferred Shares in one or more series, and to fix the preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications and terms and conditions of redemption for each class or series. The rights, preferences and privileges of the holders of the Common Shares are subject to, and may be adversely affected by, the rights of the holders of any series of Preferred Shares that we may designate and issue in the future.
|
Advance Notice Provisions
|
The Bylaws provide that a shareholder must notify us in writing, within timeframes specified in the Bylaws, of any shareholder nomination of a trustee and of any other business that the shareholder intends to bring at a meeting of shareholders.
|
Amendments to Bylaws
|
The Declaration of Trust and Bylaws provide that, subject to certain exceptions, the Bylaws may be amended by the Board or by the affirmative vote of a majority of all the votes entitled to be cast on the matter.
|
Certain Provisions of the Declaration of Trust and Bylaws
|
The Declaration of Trust and Bylaws contain a number of provisions that may be deemed to have the effect of discouraging or delaying attempts to gain control of us. Subject to the requirements of the New York Stock Exchange, the Board has the authority, without shareholder approval, to issue additional securities on terms that could delay or prevent a change in control. In addition, the Board has the authority to reclassify any of the unissued Common Shares into Preferred Shares, and to issue Preferred Shares with such preferences, rights, powers and restrictions as the Board may determine, which could also delay or prevent a change in control.
Further, the Declaration of Trust and Bylaws contain provisions (i) providing the Board with the exclusive power to determine the exact number of trustees comprising the entire Board, subject to the right of the holders of Preferred Shares to elect trustees (if any); (ii) authorizing the Board or a majority of the trustees then in office or the sole remaining trustee to fill vacancies in the Board; (iii) requiring advance notice of shareholder proposals; (iv) providing that any action required or permitted to be taken by our shareholders be taken only at an annual or special meeting and providing that shareholder action by written consent in lieu of a meeting can only be taken by unanimous action of all shareholders; (v) providing the Board with flexibility in scheduling the annual meeting (subject to state law requirements); (vi) providing that the Bylaws may be amended by the Board, subject to certain limitations; and (vii) authorizing the Board to issue Preferred Shares with rights and privileges, including voting rights, as it may deem appropriate. The foregoing provisions could delay or prevent a change of control.
|
Maryland Statutes
|
Various provisions of the Maryland Statutes, including the Maryland Business Combination Act and the Maryland Control Share Acquisition Act, may have the effect of delaying or preventing a change of control. Resolutions adopted by the Board and/or provisions of the Bylaws currently exempt us from such provisions, but the Board can adopt resolutions or change the Bylaws at any time to make these provisions applicable to us.
|
Listing
|
Our common shares are traded on the New York Stock Exchange and trade under the symbol “OFC.”
|
Transfer Agent
|
The transfer agent for the Common Shares is EQ Shareowner Services.
|
|
|
|
Exhibit 21.1
|
CORPORATE OFFICE PROPERTIES TRUST
|
|
|
|
SUBSIDIARIES OF REGISTRANT
|
|
|
|
|
|
|
|
Alabama
|
|
|
|
COPT Bridge Street Office, LLC
|
|
|
|
|
|
|
|
Delaware
|
|
|
|
2100 L Holdings, LLC
|
|
|
|
2100 L Subsidiary LLC
|
|
|
|
Advanced Gateway 7500, LLC
|
|
|
|
Advanced Gateway 7600, LLC
|
|
|
|
Advanced Gateway 7700-7800, LLC
|
|
|
|
Advanced Gateway 8600, LLC
|
|
|
|
Airport Square Holdings I, LLC
|
|
|
|
Airport Square Holdings VI and VII, LLC
|
|
|
|
Blue Bell Investment Company, L.P.
|
|
|
|
COPT Acquisitions, Inc.
|
|
|
|
COPT BK Holdco, LLC
|
|
|
|
COPT DC-6, LLC
|
|
|
|
COPT Maritime I & II, LLC
|
|
|
|
COPT Stevens Place, LLC
|
|
|
|
Corporate Office Properties Holdings, Inc.
|
|
|
|
Corporate Office Properties, L.P.
|
|
|
|
DC-11 DE, LLC
|
|
|
|
DC-12-14 DE, LLC
|
|
|
|
DC-8-9-10 DE, LLC
|
|
|
|
Delaware Airport IX, LLC
|
|
|
|
Delaware Airport VIII, LLC
|
|
|
|
GI-COPT DC Partnership LLC
|
|
|
|
Great Mills I, L.L.C.
|
|
|
|
Great Mills II, L.L.C.
|
|
|
|
Great Mills III, L.L.C.
|
|
|
|
Great Mills IV, L.L.C.
|
|
|
|
Great Mills V, L.L.C.
|
|
|
|
LW Redstone Company, LLC
|
|
|
|
Powerloft Holdings, LLC
|
|
|
|
Profit Interest Holding LLC
|
|
|
|
Redstone Gateway 100, LLC
|
|
|
|
Redstone Gateway 1000, LLC
|
|
|
|
Redstone Gateway 1100, LLC
|
|
|
|
Redstone Gateway 1200, LLC
|
|
|
|
Redstone Gateway 2100, LLC
|
|
|
|
Redstone Gateway 2400, LLC
|
|
|
|
Redstone Gateway 4000, LLC
|
|
|
|
Redstone Gateway 4100, LLC
|
|
|
|
Redstone Gateway 6500, LLC
|
|
|
|
Redstone Gateway 7100, LLC
|
|
|
|
Redstone Gateway 7200, LLC
|
|
|
|
Redstone Gateway 8000, LLC
|
|
|
|
Redstone Gateway 8800, LLC
|
|
|
|
Stevens Investors, LLC
|
|
|
|
Stevens School Holdings, LLC
|
|
|
|
|
|
|
|
Maryland
|
|
|
|
100 Charm City, LLC
|
|
|
|
100 LS Borrower, LLC
|
|
|
|
1460 Dorsey Road, LLC
|
|
|
|
1550 Nursery, LLC
|
|
|
|
250 Charm City, LLC
|
|
|
|
2500 Riva Trust
|
|
|
|
30 Charm City, LLC
|
|
|
|
30 LS Borrower, LLC
|
|
|
|
45310 Abell House, LLC
|
|
|
|
6711 Gateway, LLC
|
|
|
|
6721 Gateway, LLC
|
|
|
|
6731 Gateway, LLC
|
|
|
|
6741 Gateway, LLC
|
|
|
|
7000 Honeys, LLC
|
|
|
|
7005 Columbia Gateway, LLC
|
|
|
|
7015 Albert Einstein Drive, L.L.C.
|
|
|
|
7200 Riverwood, LLC
|
|
|
|
7205 Riverwood, LLC
|
|
|
|
7318 Parkway Drive Enterprises, LLC
|
|
|
|
7740 Milestone, LLC
|
|
|
|
7760 Milestone Parkway, LLC
|
|
|
|
7780 Milestone Parkway, LLC
|
|
|
|
7874 Milestone Parkway, LLC
|
|
|
|
7876 Milestone Parkway, LLC
|
|
|
|
7878 Milestone Parkway, LLC
|
|
|
|
7880 Milestone Parkway, LLC
|
|
|
|
Airport Square IV, LLC
|
|
|
|
Airport Square Partners, LLC
|
|
|
|
Airport Square Storms, LLC
|
|
|
|
Airport Square V, LLC
|
|
|
|
Airport Square XI, LLC
|
|
|
|
Airport Square XIII, LLC
|
|
|
|
Airport Square XXII, LLC
|
|
|
|
Airport Square, LLC
|
|
|
|
AP#5 Lot A, LLC
|
|
|
|
AP#5 Lot B, LLC
|
|
|
|
AP#5 Lot C, LLC
|
|
|
|
Arundel Preserve #5, LLC
|
|
|
|
Clarks Hundred II, LLC
|
|
|
|
Clarks Hundred, LLC
|
|
|
|
Colgatedrive Associates, LLC
|
|
|
|
Columbia Equity Finance, LLC
|
|
|
|
Columbia Gateway S-28, L.L.C.
|
|
|
|
COMI Investments, LLC
|
|
|
|
Commons Office 6-B, LLC
|
|
|
|
Commons Office Research, LLC
|
|
|
|
COPT Aberdeen, LLC
|
|
|
|
COPT AP 9, LLC
|
|
|
|
COPT Arundel Preserve, LLC
|
|
|
|
COPT Baltimore County I, LLC
|
|
|
|
COPT Baltimore County II, LLC
|
|
|
|
COPT Brock Bridge, LLC
|
|
|
|
COPT CC 1600, LLC
|
|
|
|
COPT CC Bulkhead, LLC
|
|
|
|
COPT CC D1, LLC
|
|
|
|
COPT CC Holding, LLC
|
|
|
|
COPT CC Parking, LLC
|
|
|
|
COPT CC Tower, LLC
|
|
|
|
COPT CCW I, LLC
|
|
|
|
COPT CCW II, LLC
|
|
|
|
COPT CCW III, LLC
|
|
|
|
COPT Data Management, LLC
|
|
|
|
COPT Development & Construction Services, LLC
|
|
|
|
COPT Frederick, LLC
|
|
|
|
COPT Gate 63, LLC
|
|
|
|
COPT Gate 6700-6708-6724, LLC
|
|
|
|
COPT General, LLC
|
|
|
|
COPT Harbour's Edge, LLC
|
|
|
|
COPT Huntsville, LLC
|
|
|
|
COPT Northgate A, LLC
|
|
|
|
COPT Northgate B, LLC
|
|
|
|
COPT Northgate C, LLC
|
|
|
|
COPT Northgate D, LLC
|
|
|
|
COPT Northgate H, LLC
|
|
|
|
COPT Northgate I, LLC
|
|
|
|
COPT Powerhouse, LLC
|
|
|
|
COPT Pres Investment, LLC
|
|
|
|
COPT Property Management Services, LLC
|
|
|
|
COPT Renovation, LLC
|
|
|
|
COPT Riverwood, LLC
|
|
|
|
COPT T-11, LLC
|
|
|
|
COPT Virtru, LLC
|
|
|
|
COPT-Kirk AP#5, LLC
|
|
|
|
Corporate Development Services, LLC
|
|
|
|
Corporate Gatespring II, LLC
|
|
|
|
Corporate Gatespring, LLC
|
|
|
|
Corporate Office Management, Inc.
|
|
|
|
Corporate Office Services, LLC
|
|
|
|
Enterprise Campus Developer, LLC
|
|
|
|
Fifth Exploration, L.L.C.
|
|
|
|
Fourth Exploration, L.L.C.
|
|
|
|
Gateway 44, LLC
|
|
|
|
Gateway 67, LLC
|
|
|
|
Gateway 70, LLC
|
|
|
|
Gateway Crossing 95, LLC
|
|
|
|
Honeyland 108, LLC
|
|
|
|
Huntsville Holdings, LLC
|
|
|
|
Jolly COPT I, LLC
|
|
|
|
Jolly COPT II, LLC
|
|
|
|
M Square 4600, LLC
|
|
|
|
M Square 5801, LLC
|
|
|
|
M Square 5825, LLC
|
|
|
|
M Square 5850, LLC
|
|
|
|
M Square Associates, LLC
|
|
|
|
M Square Park, LLC
|
|
|
|
Maritime Holdings, LLC
|
|
|
|
MOR Forbes, LLC
|
|
|
|
NBP 131, LLC
|
|
|
|
NBP 132, LLC
|
|
|
|
NBP 133, LLC
|
|
|
|
NBP 134, LLC
|
|
|
|
NBP 135, LLC
|
|
|
|
NBP 140, LLC
|
|
|
|
NBP 141, LLC
|
|
|
|
NBP 191, LLC
|
|
|
|
NBP 201, LLC
|
|
|
|
NBP 211, LLC
|
|
|
|
NBP 220, LLC
|
|
|
|
NBP 221, LLC
|
|
|
|
NBP 300 Restaurant, LLC
|
|
|
|
NBP 300, LLC
|
|
|
|
NBP 302, LLC
|
|
|
|
NBP 304, LLC
|
|
|
|
NBP 306, LLC
|
|
|
|
NBP 308, LLC
|
|
|
|
NBP 310, LLC
|
|
|
|
NBP 312, LLC
|
|
|
|
NBP 314, LLC
|
|
|
|
NBP 316, LLC
|
|
|
|
NBP 318, LLC
|
|
|
|
NBP 320, LLC
|
|
|
|
NBP 322, LLC
|
|
|
|
NBP 324, LLC
|
|
|
|
NBP 410, LLC
|
|
|
|
NBP 420, LLC
|
|
|
|
NBP 430, LLC
|
|
|
|
NBP 520, LLC
|
|
|
|
NBP 540, LLC
|
|
|
|
NBP Huff & Puff, LLC
|
|
|
|
NBP Lot 3-A, LLC
|
|
|
|
NBP One, LLC
|
|
|
|
NBP Retail, LLC
|
|
|
|
Nottingham Ridge Holding Corp.
|
|
|
|
One Sellner Road, LLC
|
|
|
|
Park Circle Equities, LLC
|
|
|
|
Pecan Court L.L.C.
|
|
|
|
Red Cedar Building, LLC
|
|
|
|
RG 2100 Restaurant, LLC
|
|
|
|
RIVA Trustee, LLC
|
|
|
|
Riverwood Business Center Equity Affiliates, LLC
|
|
|
|
Third Exploration L.L.C.
|
|
|
|
|
|
|
|
Texas
|
|
|
|
C Texas SG, LLC
|
|
|
|
COPT 8000 Potranco, L.P.
|
|
|
|
COPT 8030 Potranco, L.P.
|
|
|
|
COPT 8100 Potranco, L.P.
|
|
|
|
COPT SA Technology Center, L.P.
|
|
|
|
COPT San Antonio , L.P.
|
|
|
|
COPT San Antonio General, LLC
|
|
|
|
COPT San Antonio II, L.P.
|
|
|
|
COPT Westpointe 3A, L.P.
|
|
|
|
COPT Westpointe 4, L.P.
|
|
|
|
|
|
|
|
Virginia
|
|
|
|
Beaumeade LC Phase III, LLC
|
|
|
|
Cabin Branch Creek, LLC
|
|
|
|
COPT Connect, LLC
|
|
|
|
COPT Dahlgren I, LLC
|
|
|
|
COPT Dahlgren II, LLC
|
|
|
|
COPT Dahlgren IV, LLC
|
|
|
|
COPT Dahlgren Land, LLC
|
|
|
|
COPT Dahlgren, LLC
|
|
|
|
COPT DC Innovation, LLC
|
|
|
|
COPT DC Partner, LLC
|
|
|
|
COPT DC-21, LLC
|
|
|
|
COPT Greens I, LLC
|
|
|
|
COPT Greens II, LLC
|
|
|
|
COPT Greens III, LLC
|
|
|
|
COPT McLearen, LLC
|
|
|
|
COPT Metro Place II, LLC
|
|
|
|
COPT Park Meadow, LLC
|
|
|
|
COPT Parkstone, LLC
|
|
|
|
COPT Ridgeview I, LLC
|
|
|
|
COPT Ridgeview II & III, LLC
|
|
|
|
COPT Stonecroft, LLC
|
|
|
|
COPT Sunrise, LLC
|
|
|
|
DC-12-14, LLC
|
|
|
|
Maries Tech Park, LLC
|
|
|
|
Patriot Ridge 7770, LLC
|
|
|
|
Patriot Ridge Commons, LLC
|
|
|
|
Patriot Ridge Holdings, LLC
|
|
|
|
Patriot Ridge I, LLC
|
|
|
|
Patriot Ridge II, LLC
|
|
|
|
South Point Phase II, LLC
|
|
|
|
TRC Pinnacle Towers, L.L.C.
|
|
|
|
Waterside I, LLC
|
|
|
|
|
|
|
Exhibit 21.2
|
CORPORATE OFFICE PROPERTIES, L.P.
|
|
|
|
SUBSIDIARIES OF REGISTRANT
|
|
|
|
|
|
|
|
Alabama
|
|
|
|
COPT Bridge Street Office, LLC
|
|
|
|
|
|
|
|
Delaware
|
|
|
|
2100 L Holdings, LLC
|
|
|
|
2100 L Subsidiary LLC
|
|
|
|
Advanced Gateway 7500, LLC
|
|
|
|
Advanced Gateway 7600, LLC
|
|
|
|
Advanced Gateway 7700-7800, LLC
|
|
|
|
Advanced Gateway 8600, LLC
|
|
|
|
Airport Square Holdings I, LLC
|
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Airport Square Holdings VI and VII, LLC
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Blue Bell Investment Company, L.P.
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COPT BK Holdco, LLC
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COPT DC-6, LLC
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COPT Maritime I & II, LLC
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COPT Stevens Place, LLC
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DC-11 DE, LLC
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DC-12-14 DE, LLC
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DC-8-9-10 DE, LLC
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Delaware Airport IX, LLC
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Delaware Airport VIII, LLC
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GI-COPT DC Partnership LLC
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Great Mills I, L.L.C.
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Great Mills II, L.L.C.
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Great Mills III, L.L.C.
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Great Mills IV, L.L.C.
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Great Mills V, L.L.C.
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LW Redstone Company, LLC
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Powerloft Holdings, LLC
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Profit Interest Holding LLC
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Redstone Gateway 100, LLC
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Redstone Gateway 1000, LLC
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Redstone Gateway 1100, LLC
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Redstone Gateway 1200, LLC
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Redstone Gateway 2100, LLC
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Redstone Gateway 2400, LLC
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Redstone Gateway 4000, LLC
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Redstone Gateway 4100, LLC
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Redstone Gateway 6500, LLC
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Redstone Gateway 7100, LLC
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Redstone Gateway 7200, LLC
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Redstone Gateway 8000, LLC
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Redstone Gateway 8800, LLC
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Stevens Investors, LLC
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Stevens School Holdings, LLC
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Maryland
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100 Charm City, LLC
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100 LS Borrower, LLC
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1460 Dorsey Road, LLC
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1550 Nursery, LLC
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250 Charm City, LLC
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2500 Riva Trust
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30 Charm City, LLC
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30 LS Borrower, LLC
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45310 Abell House, LLC
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6711 Gateway, LLC
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6721 Gateway, LLC
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6731 Gateway, LLC
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6741 Gateway, LLC
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7000 Honeys, LLC
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7005 Columbia Gateway, LLC
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7015 Albert Einstein Drive, L.L.C.
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7200 Riverwood, LLC
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7205 Riverwood, LLC
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7318 Parkway Drive Enterprises, LLC
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7740 Milestone, LLC
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7760 Milestone Parkway, LLC
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7780 Milestone Parkway, LLC
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7874 Milestone Parkway, LLC
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7876 Milestone Parkway, LLC
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7878 Milestone Parkway, LLC
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7880 Milestone Parkway, LLC
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Airport Square IV, LLC
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Airport Square Partners, LLC
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Airport Square Storms, LLC
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Airport Square V, LLC
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Airport Square XI, LLC
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Airport Square XIII, LLC
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Airport Square XXII, LLC
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Airport Square, LLC
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AP#5 Lot A, LLC
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AP#5 Lot B, LLC
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AP#5 Lot C, LLC
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Arundel Preserve #5, LLC
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Clarks Hundred II, LLC
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Clarks Hundred, LLC
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Colgatedrive Associates, LLC
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Columbia Equity Finance, LLC
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Columbia Gateway S-28, L.L.C.
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COMI Investments, LLC
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Commons Office 6-B, LLC
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Commons Office Research, LLC
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COPT Aberdeen, LLC
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COPT AP 9, LLC
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COPT Arundel Preserve, LLC
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COPT Baltimore County I, LLC
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COPT Baltimore County II, LLC
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COPT Brock Bridge, LLC
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COPT CC 1600, LLC
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COPT CC Bulkhead, LLC
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COPT CC D1, LLC
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COPT CC Holding, LLC
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COPT CC Parking, LLC
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COPT CC Tower, LLC
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COPT CCW I, LLC
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COPT CCW II, LLC
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COPT CCW III, LLC
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COPT Data Management, LLC
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COPT Development & Construction Services, LLC
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COPT Frederick, LLC
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COPT Gate 63, LLC
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COPT Gate 6700-6708-6724, LLC
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COPT General, LLC
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COPT Harbour's Edge, LLC
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COPT Huntsville, LLC
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COPT Northgate A, LLC
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COPT Northgate B, LLC
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COPT Northgate C, LLC
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COPT Northgate D, LLC
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COPT Northgate H, LLC
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COPT Northgate I, LLC
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COPT Powerhouse, LLC
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COPT Pres Investment, LLC
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COPT Property Management Services, LLC
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COPT Renovation, LLC
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COPT Riverwood, LLC
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COPT T-11, LLC
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COPT Virtru, LLC
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COPT-Kirk AP#5, LLC
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|
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Corporate Development Services, LLC
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|
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Corporate Gatespring II, LLC
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|
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Corporate Gatespring, LLC
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Corporate Office Management, Inc.
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Corporate Office Services, LLC
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|
|
|
Enterprise Campus Developer, LLC
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|
|
|
Fifth Exploration, L.L.C.
|
|
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Fourth Exploration, L.L.C.
|
|
|
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Gateway 44, LLC
|
|
|
|
Gateway 67, LLC
|
|
|
|
Gateway 70, LLC
|
|
|
|
Gateway Crossing 95, LLC
|
|
|
|
Honeyland 108, LLC
|
|
|
|
Huntsville Holdings, LLC
|
|
|
|
Jolly COPT I, LLC
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|
|
|
Jolly COPT II, LLC
|
|
|
|
M Square 4600, LLC
|
|
|
|
M Square 5801, LLC
|
|
|
|
M Square 5825, LLC
|
|
|
|
M Square 5850, LLC
|
|
|
|
M Square Associates, LLC
|
|
|
|
M Square Park, LLC
|
|
|
|
Maritime Holdings, LLC
|
|
|
|
MOR Forbes, LLC
|
|
|
|
NBP 131, LLC
|
|
|
|
NBP 132, LLC
|
|
|
|
NBP 133, LLC
|
|
|
|
NBP 134, LLC
|
|
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|
NBP 135, LLC
|
|
|
|
NBP 140, LLC
|
|
|
|
NBP 141, LLC
|
|
|
|
NBP 191, LLC
|
|
|
|
NBP 201, LLC
|
|
|
|
NBP 211, LLC
|
|
|
|
NBP 220, LLC
|
|
|
|
NBP 221, LLC
|
|
|
|
NBP 300 Restaurant, LLC
|
|
|
|
NBP 300, LLC
|
|
|
|
NBP 302, LLC
|
|
|
|
NBP 304, LLC
|
|
|
|
NBP 306, LLC
|
|
|
|
NBP 308, LLC
|
|
|
|
NBP 310, LLC
|
|
|
|
NBP 312, LLC
|
|
|
|
NBP 314, LLC
|
|
|
|
NBP 316, LLC
|
|
|
|
NBP 318, LLC
|
|
|
|
NBP 320, LLC
|
|
|
|
NBP 322, LLC
|
|
|
|
NBP 324, LLC
|
|
|
|
NBP 410, LLC
|
|
|
|
NBP 420, LLC
|
|
|
|
NBP 430, LLC
|
|
|
|
NBP 520, LLC
|
|
|
|
NBP 540, LLC
|
|
|
|
NBP Huff & Puff, LLC
|
|
|
|
NBP Lot 3-A, LLC
|
|
|
|
NBP One, LLC
|
|
|
|
NBP Retail, LLC
|
|
|
|
Nottingham Ridge Holding Corp.
|
|
|
|
One Sellner Road, LLC
|
|
|
|
Park Circle Equities, LLC
|
|
|
|
Pecan Court L.L.C.
|
|
|
|
Red Cedar Building, LLC
|
|
|
|
RG 2100 Restaurant, LLC
|
|
|
|
RIVA Trustee, LLC
|
|
|
|
Riverwood Business Center Equity Affiliates, LLC
|
|
|
|
Third Exploration L.L.C.
|
|
|
|
|
|
|
|
Texas
|
|
|
|
C Texas SG, LLC
|
|
|
|
COPT 8000 Potranco, L.P.
|
|
|
|
COPT 8030 Potranco, L.P.
|
|
|
|
COPT 8100 Potranco, L.P.
|
|
|
|
COPT SA Technology Center, L.P.
|
|
|
|
COPT San Antonio , L.P.
|
|
|
|
COPT San Antonio General, LLC
|
|
|
|
COPT San Antonio II, L.P.
|
|
|
|
COPT Westpointe 3A, L.P.
|
|
|
|
COPT Westpointe 4, L.P.
|
|
|
|
|
|
|
|
Virginia
|
|
|
|
Beaumeade LC Phase III, LLC
|
|
|
|
Cabin Branch Creek, LLC
|
|
|
|
COPT Connect, LLC
|
|
|
|
COPT Dahlgren I, LLC
|
|
|
|
COPT Dahlgren II, LLC
|
|
|
|
COPT Dahlgren IV, LLC
|
|
|
|
COPT Dahlgren Land, LLC
|
|
|
|
COPT Dahlgren, LLC
|
|
|
|
COPT DC Innovation, LLC
|
|
|
|
COPT DC Partner, LLC
|
|
|
|
COPT DC-21, LLC
|
|
|
|
COPT Greens I, LLC
|
|
|
|
COPT Greens II, LLC
|
|
|
|
COPT Greens III, LLC
|
|
|
|
COPT McLearen, LLC
|
|
|
|
COPT Metro Place II, LLC
|
|
|
|
COPT Park Meadow, LLC
|
|
|
|
COPT Parkstone, LLC
|
|
|
|
COPT Ridgeview I, LLC
|
|
|
|
COPT Ridgeview II & III, LLC
|
|
|
|
COPT Stonecroft, LLC
|
|
|
|
COPT Sunrise, LLC
|
|
|
|
DC-12-14, LLC
|
|
|
|
Maries Tech Park, LLC
|
|
|
|
Patriot Ridge 7770, LLC
|
|
|
|
Patriot Ridge Commons, LLC
|
|
|
|
Patriot Ridge Holdings, LLC
|
|
|
|
Patriot Ridge I, LLC
|
|
|
|
Patriot Ridge II, LLC
|
|
|
|
South Point Phase II, LLC
|
|
|
|
TRC Pinnacle Towers, L.L.C.
|
|
|
|
Waterside I, LLC
|
|
|
|
Date:
|
February 19, 2020
|
|
/s/ Stephen E. Budorick
|
|
|
Stephen E. Budorick
|
|
|
|
President and Chief Executive Officer
|
Date:
|
February 19, 2020
|
|
/s/ Anthony Mifsud
|
|
|
Anthony Mifsud
|
|
|
|
Chief Financial Officer
|
Date:
|
February 19, 2020
|
|
/s/ Stephen E. Budorick
|
|
|
Stephen E. Budorick
|
|
|
|
President and Chief Executive Officer
|
|
|
|
|
|
Date:
|
February 19, 2020
|
|
/s/ Anthony Mifsud
|
|
|
Anthony Mifsud
|
|
|
|
Chief Financial Officer
|
/s/ Stephen E. Budorick
|
|
Stephen E. Budorick
|
|
President and Chief Executive Officer
|
|
|
|
Date:
|
February 19, 2020
|
/s/ Anthony Mifsud
|
|
Anthony Mifsud
|
|
Chief Financial Officer
|
|
|
|
Date:
|
February 19, 2020
|
/s/ Stephen E. Budorick
|
|
Stephen E. Budorick
|
|
President and Chief Executive Officer
|
|
|
|
Date:
|
February 19, 2020
|
/s/ Anthony Mifsud
|
|
Anthony Mifsud
|
|
Chief Financial Officer
|
|
|
|
Date:
|
February 19, 2020
|