0000860546-21-000019.txt : 20210429 0000860546-21-000019.hdr.sgml : 20210429 20210429162038 ACCESSION NUMBER: 0000860546-21-000019 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 23 CONFORMED PERIOD OF REPORT: 20210429 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20210429 DATE AS OF CHANGE: 20210429 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CORPORATE OFFICE PROPERTIES TRUST CENTRAL INDEX KEY: 0000860546 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 232947217 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-14023 FILM NUMBER: 21870950 BUSINESS ADDRESS: STREET 1: 6711 COLUMBIA GATEWAY DRIVE STREET 2: SUITE 300 CITY: COLUMBIA STATE: MD ZIP: 21046 BUSINESS PHONE: 4432855400 MAIL ADDRESS: STREET 1: 6711 COLUMBIA GATEWAY DRIVE STREET 2: SUITE 300 CITY: COLUMBIA STATE: MD ZIP: 21046 FORMER COMPANY: FORMER CONFORMED NAME: CORPORATE OFFICE PROPERTIES TRUST INC DATE OF NAME CHANGE: 19980105 FORMER COMPANY: FORMER CONFORMED NAME: ROYALE INVESTMENTS INC DATE OF NAME CHANGE: 19930328 FORMER COMPANY: FORMER CONFORMED NAME: ROYALE REIT INC DATE OF NAME CHANGE: 19600201 8-K 1 ofc-20210429.htm 8-K ofc-20210429
0000860546false00008605462021-04-292021-04-29

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC  20549
__________________________________________________________
FORM 8-K
__________________________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): April 29, 2021
CORPORATE OFFICE PROPERTIES TRUST
(Exact name of registrant as specified in its charter)
Maryland 1-1402323-2947217
(State or other jurisdiction of (Commission File(IRS Employer
incorporation or organization) Number)Identification No.)
6711 Columbia Gateway Drive, Suite 300
Columbia, Maryland 21046
(Address of principal executive offices)
(443) 285-5400
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Shares of beneficial interest, $0.01 par valueOFCNew York Stock Exchange
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):
 Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging Growth Company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.



Item 2.02.             Results of Operations and Financial Condition
 
On April 29, 2021, Corporate Office Properties Trust (the “Company”) issued a press release relating to its financial results for the three months ended March 31, 2021 and, in connection with this release, is making available certain supplemental information pertaining to its properties and operations as of and for the period ended March 31, 2021.  The earnings release and supplemental information are included as Exhibit 99.1 to this report and are incorporated herein by reference.
 
The information included herein, including the exhibits, shall not be deemed “filed” for any purpose, including the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or subject to liabilities of that Section.  The information included herein, including the exhibits, shall also not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act regardless of any general incorporation language in such filing.

Item 9.01.             Financial Statements and Exhibits
Exhibit Number Exhibit Title
 
104Cover Page Interactive Data File (embedded within the Inline XBRL document).



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 CORPORATE OFFICE PROPERTIES TRUST
/s/ Anthony Mifsud
 Anthony Mifsud
 Executive Vice President and Chief Financial Officer
Dated:April 29, 2021



EX-99.1 2 copt3312021ex991.htm EX-99.1 Document
Exhibit 99.1

a2021_q1xcover1a.jpg



tableofcontents_q121-1a.jpg


Corporate Office Properties Trust
Summary Description

The Company: Corporate Office Properties Trust (the “Company” or “COPT”) is a self-managed real estate investment trust (“REIT”). COPT is listed on the New York Stock Exchange under the symbol “OFC” and is an S&P MidCap 400 Company. We own, manage, lease, develop and selectively acquire office and data center properties. The majority of our portfolio is in locations that support the United States Government and its contractors, most of whom are engaged in national security, defense and information technology (“IT”) related activities servicing what we believe are growing, durable, priority missions; we refer to these properties as Defense/IT Locations. We also own a portfolio of office properties located in select urban/urban-like submarkets in the Greater Washington, DC/Baltimore region with durable Class-A office fundamentals and characteristics; these properties are included in a segment referred to as Regional Office Properties. As of March 31, 2021, we derived 88% of our core portfolio annualized rental revenue from Defense/IT Locations and 12% from Regional Office Properties. As of March 31, 2021, our core portfolio of 180 office and data center shell properties, including 17 owned through unconsolidated joint ventures, encompassed 20.8 million square feet and was 94.9% leased. As of the same date, we also owned a wholesale data center with a critical load of 19.25 megawatts that was 86.7% leased.
Management:Investor Relations:
Stephen E. Budorick, President & CEOStephanie Krewson-Kelly, VP of IR
Todd Hartman, EVP & COO
443-285-5453, stephanie.kelly@copt.com
Anthony Mifsud, EVP & CFOMichelle Layne, Manager of IR
443-285-5452, michelle.layne@copt.com
 
Corporate Credit Rating: Fitch: BBB- Stable; Moody’s: Baa3 Stable; and S&P: BBB- Stable

Disclosure Statement: This supplemental package contains forward-looking statements within the meaning of the Federal securities laws. Forward-looking statements can be identified by the use of words such as “may,” “will,” “should,” “could,” “believe,” “anticipate,” “expect,” “estimate,” “plan” or other comparable terminology.  Forward-looking statements are inherently subject to risks and uncertainties, many of which we cannot predict with accuracy and some of which we might not even anticipate.  Although we believe that the expectations, estimates and projections reflected in such forward-looking statements are based on reasonable assumptions at the time made, we can give no assurance that these expectations, estimates and projections will be achieved.  Future events and actual results may differ materially from those discussed in the forward-looking statements and we undertake no obligation to update or supplement any forward-looking statements.  The areas of risk that may affect these expectations, estimates and projections include, but are not limited to, those risks described in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2020.
1

Corporate Office Properties Trust
Equity Research Coverage
Firm Senior Analyst Phone Email
Bank of America Securities Jamie Feldman 646-855-5808 james.feldman@bofa.com
BTIGTom Catherwood212-738-6410tcatherwood@btig.com
Capital One SecuritiesChris Lucas571-633-8151christopher.lucas@capitalone.com
Citigroup Global Markets Manny Korchman 212-816-1382 emmanuel.korchman@citi.com
Evercore ISISteve Sakwa212-446-9462steve.sakwa@evercoreisi.com
Green Street  Daniel Ismail 949-640-8780 dismail@greenstreet.com
Jefferies & Co. Peter Abramowitz 212-336-7241 pabramowitz@jefferies.com
JP Morgan Tony Paolone 212-622-6682 anthony.paolone@jpmorgan.com
KeyBanc Capital Markets Craig Mailman 917-368-2316 cmailman@key.com
Mizuho Securities USA Inc.Tayo Okusanya646-949-9672omotayo.okusanya@mizuhogroup.com
Raymond James Bill Crow 727-567-2594 bill.crow@raymondjames.com
Robert W. Baird & Co., Inc. Dave Rodgers 216-737-7341 drodgers@rwbaird.com
SMBC Nikko Securities America, Inc.Rich Anderson646-521-2351randerson@smbcnikko-si.com
Truist Securities Michael Lewis 212-319-5659 michael.r.lewis@truist.com
Wells Fargo SecuritiesBlaine Heck443-263-6529blaine.heck@wellsfargo.com
 
With the exception of Green Street, the above-listed firms are those whose analysts publish research material on the Company and whose estimates of our FFO per share can be tracked through Thomson’s First Call Corporation. Any opinions, estimates, or forecasts the above analysts make regarding COPT’s future performance are their own and do not represent the views, estimates, or forecasts of COPT’s management.
2

Corporate Office Properties Trust
Selected Financial Summary Data
(in thousands, except per share data)
 PageThree Months Ended
SUMMARY OF RESULTS Refer.3/31/2112/31/209/30/206/30/203/31/20
Net (loss) income6$(6,079)$83,549 $(31,342)$25,121 $25,550 
NOI from real estate operations13$89,107 $89,304 $84,643 $84,059 $83,830 
Same Properties NOI16$75,833 $77,142 $75,595 $76,456 $76,755 
Same Properties cash NOI17$74,000 $77,886 $75,077 $76,991 $76,041 
Adjusted EBITDA10$83,338 $82,298 $80,062 $78,582 $77,989 
Diluted AFFO avail. to common share and unit holders
9$52,387 $56,792 $50,340 $46,690 $41,495 
Dividend per common shareN/A$0.275 $0.275 $0.275 $0.275 $0.275 
Per share - diluted:     
EPS8$(0.06)$0.73 $(0.29)$0.21 $0.21 
FFO - Nareit8$0.27 $0.53 $0.04 $0.51 $0.41 
FFO - as adjusted for comparability8$0.56 $0.56 $0.54 $0.51 $0.51 
Numerators for diluted per share amounts:
Diluted EPS6$(6,839)$81,501 $(31,990)$23,388 $23,957 
Diluted FFO available to common share and unit holders
7$30,997 $60,137 $5,069 $57,809 $46,706 
Diluted FFO available to common share and unit holders, as adjusted for comparability
7$64,454 $64,188 $61,485 $57,817 $57,866 
Payout ratios:     
Diluted FFON/A100.5%51.8%613.6%53.9%66.6%
Diluted FFO - as adjusted for comparabilityN/A48.3%48.6%50.7%53.9%53.9%
Diluted AFFO
N/A59.5%54.9%61.9%66.8%75.1%
CAPITALIZATION    
Total Market Capitalization26$5,226,694 $5,062,432 $4,898,459 $4,908,346 $4,609,280 
Total Equity Market Capitalization26$2,995,090 $2,960,967 $2,701,186 $2,885,245 $2,520,400 
Gross debt27$2,257,854 $2,127,715 $2,247,523 $2,073,351 $2,139,130 
Net debt to adjusted book2940.8%39.1%41.0%38.6%38.2%
Net debt plus preferred equity to adjusted book2940.8%39.1%41.1%38.8%38.3%
Adjusted EBITDA fixed charge coverage ratio294.3x4.1x3.9x3.8x3.8x
Net debt plus pref. equity to in-place adj. EBITDA ratio296.6x6.2x6.8x6.4x6.3x
Net debt adjusted for fully-leased development plus pref. equity to in-place adj. EBITDA ratio296.3x5.9x6.4x5.9x5.8x


3

Corporate Office Properties Trust
Selected Portfolio Data (1)
 3/31/2112/31/209/30/206/30/203/31/20
Operating Office and Data Center Shell Properties
# of Properties
Total Portfolio182181176174171
Consolidated Portfolio165164161159156
Core Portfolio180179174172169
Same Properties161161161161161
% Occupied
Total Portfolio93.8 %94.1 %93.8 %93.4 %93.7 %
Consolidated Portfolio92.9 %93.2 %93.0 %92.5 %92.8 %
Core Portfolio 94.0 %94.3 %94.0 %93.6 %94.0 %
Same Properties92.8 %93.1 %93.0 %92.8 %93.2 %
% Leased
Total Portfolio94.7 %94.8 %94.4 %94.5 %94.9 %
Consolidated Portfolio93.9 %94.0 %93.6 %93.7 %94.2 %
Core Portfolio 94.9 %95.0 %94.6 %94.7 %95.2 %
Same Properties93.8 %94.0 %93.6 %94.0 %94.5 %
Square Feet (in thousands)
Total Portfolio21,00620,95920,38919,78119,378
Consolidated Portfolio18,25718,20917,94017,34616,943
Core Portfolio20,84920,80220,23219,62419,221
Same Properties17,80217,80217,80217,80217,802
Wholesale Data Center
Megawatts Operational19.2519.2519.2519.2519.25
% Leased 86.7 %86.7 %86.7 %90.6 %76.9 %

(1)Includes properties owned through unconsolidated real estate joint ventures (see page 31).
4

Corporate Office Properties Trust
Consolidated Balance Sheets
(in thousands)
 3/31/2112/31/209/30/206/30/203/31/20
Assets     
Properties, net:     
Operating properties, net$3,106,698 $3,115,280 $2,999,892 $2,888,817 $2,813,949 
Development and redevelopment in progress, including land (1)187,290 172,614 302,158 315,243 300,836 
Land held (1)285,266 274,655 284,888 309,039 304,843 
Total properties, net3,579,254 3,562,549 3,586,938 3,513,099 3,419,628 
Property - operating right-of-use assets 39,810 40,570 36,442 31,009 27,793 
Property - finance right-of-use assets 40,091 40,425 40,432 40,441 40,450 
Cash and cash equivalents36,139 18,369 11,458 21,596 159,061 
Investment in unconsolidated real estate joint ventures28,934 29,303 49,662 50,457 51,220 
Accounts receivable, net44,916 41,637 36,151 30,404 30,317 
Deferred rent receivable 98,048 92,876 92,853 90,493 89,690 
Intangible assets on real estate acquisitions, net18,137 19,344 22,433 24,768 26,078 
Deferred leasing costs, net 56,508 58,613 59,392 58,666 58,608 
Investing receivables, net71,831 68,754 74,136 72,333 71,197 
Prepaid expenses and other assets, net99,280 104,583 110,292 78,059 80,415 
Total assets$4,112,948 $4,077,023 $4,120,189 $4,011,325 $4,054,457 
Liabilities and equity     
Liabilities:     
Debt $2,207,903 $2,086,918 $2,181,551 $2,012,019 $2,076,839 
Accounts payable and accrued expenses96,465 142,717 140,921 149,836 128,441 
Rents received in advance and security deposits30,922 33,425 30,276 30,459 33,323 
Dividends and distributions payable31,305 31,231 31,307 31,302 31,301 
Deferred revenue associated with operating leases10,221 10,832 8,579 8,821 6,972 
Property - operating lease liabilities30,176 30,746 26,382 20,796 17,365 
Interest rate derivatives7,640 9,522 10,977 65,612 63,232 
Other liabilities15,599 12,490 17,038 12,408 8,886 
Total liabilities2,430,231 2,357,881 2,447,031 2,331,253 2,366,359 
Redeemable noncontrolling interests25,925 25,430 23,522 23,148 22,912 
Equity:   
COPT’s shareholders’ equity:   
Common shares1,123 1,122 1,122 1,122 1,122 
Additional paid-in capital2,476,807 2,478,906 2,479,321 2,477,977 2,476,677 
Cumulative distributions in excess of net income(847,407)(809,836)(860,647)(797,959)(790,600)
Accumulated other comprehensive loss(7,391)(9,157)(10,548)(64,513)(62,201)
Total COPT’s shareholders’ equity1,623,132 1,661,035 1,609,248 1,616,627 1,624,998 
Noncontrolling interests in subsidiaries:     
Common units in the Operating Partnership21,345 20,465 19,522 19,611 19,600 
Preferred units in the Operating Partnership — — 8,800 8,800 8,800 
Other consolidated entities12,315 12,212 12,066 11,886 11,788 
Total noncontrolling interests in subsidiaries33,660 32,677 40,388 40,297 40,188 
Total equity1,656,792 1,693,712 1,649,636 1,656,924 1,665,186 
Total liabilities, redeemable noncontrolling interests and equity$4,112,948 $4,077,023 $4,120,189 $4,011,325 $4,054,457 
(1)Refer to pages 23 and 25 for detail.

5

Corporate Office Properties Trust
Consolidated Statements of Operations
(in thousands)
 Three Months Ended
 3/31/2112/31/209/30/206/30/203/31/20
Revenues     
Lease revenue$144,624 $139,093 $133,875 $132,147 $131,012 
Other property revenue540 535 568 391 1,104 
Construction contract and other service revenues16,558 24,400 20,323 12,236 13,681 
Total revenues161,722 164,028 154,766 144,774 145,797 
Operating expenses     
Property operating expenses56,974 52,085 51,552 50,204 49,999 
Depreciation and amortization associated with real estate operations37,321 36,653 35,332 33,612 32,596 
Construction contract and other service expenses15,793 23,563 19,220 11,711 13,121 
Impairment losses— — 1,530 — — 
General and administrative expenses6,062 7,897 5,558 6,511 5,303 
Leasing expenses2,344 1,993 1,909 1,647 2,183 
Business development expenses and land carry costs1,094 999 1,094 1,262 1,118 
Total operating expenses119,588 123,190 116,195 104,947 104,320 
Interest expense(17,519)(17,148)(17,152)(16,797)(16,840)
Interest and other income1,865 3,341 1,746 2,282 1,205 
Credit loss recoveries (expense) (1)907 772 1,465 (615)(689)
Gain on sales of real estate(490)30,204 — — 
Gain on sale of investment in unconsolidated real estate joint venture— 29,416 — — — 
Loss on early extinguishment of debt(33,166)(4,069)(3,237)— — 
Loss on interest rate derivatives— — (53,196)— — 
(Loss) income before equity in income of unconsolidated entities and income taxes(6,269)83,354 (31,803)24,697 25,158 
Equity in income of unconsolidated entities222 453 477 454 441 
Income tax expense(32)(258)(16)(30)(49)
Net (loss) income(6,079)83,549 (31,342)25,121 25,550 
Net loss (income) attributable to noncontrolling interests:     
Common units in the Operating Partnership85 (995)386 (284)(287)
Preferred units in the Operating Partnership— (69)(77)(77)(77)
Other consolidated entities(675)(817)(812)(1,263)(1,132)
Net (loss) income attributable to COPT common shareholders$(6,669)$81,668 $(31,845)$23,497 $24,054 
Amount allocable to share-based compensation awards(170)(280)(145)(109)(97)
Redeemable noncontrolling interests— 44 — — — 
Distributions on dilutive convertible preferred units— 69 — — — 
Numerator for diluted EPS$(6,839)$81,501 $(31,990)$23,388 $23,957 

(1)Excludes credit losses on lease revenue, which are included in lease revenue.
6

Corporate Office Properties Trust
Funds from Operations
(in thousands)
 Three Months Ended
 3/31/2112/31/209/30/206/30/203/31/20
Net (loss) income$(6,079)$83,549 $(31,342)$25,121 $25,550 
Real estate-related depreciation and amortization37,321 36,653 35,332 33,612 32,596 
Impairment losses on real estate
— — 1,530 — — 
Gain on sales of real estate490 (30,204)— — (5)
Gain on sale of investment in unconsolidated real estate JV— (29,416)— — — 
Depreciation and amortization on unconsolidated real estate JVs (1)454 874 819 818 818 
FFO - per Nareit (2)(3)32,186 61,456 6,339 59,551 58,959 
Noncontrolling interests - preferred units in the Operating Partnership— (69)(77)(77)(77)
FFO allocable to other noncontrolling interests (4)(1,027)(1,091)(1,074)(1,525)(12,015)
Basic FFO allocable to share-based compensation awards(162)(272)(119)(254)(193)
Basic FFO available to common share and common unit holders (3)30,997 60,024 5,069 57,695 46,674 
Dilutive preferred units in the Operating Partnership— 69 — 77 — 
Redeemable noncontrolling interests— 44 — 37 32 
Diluted FFO available to common share and common unit holders - per Nareit (3)
30,997 60,137 5,069 57,809 46,706 
Loss on early extinguishment of debt33,166 4,069 3,237 — — 
Loss on interest rate derivatives— — 53,196 — — 
Demolition costs on redevelopment and nonrecurring improvements— — 11 43 
Dilutive preferred units in the Operating Partnership— — 77 — 77 
FFO allocation to other noncontrolling interests resulting from capital event (4)— — — — 11,090 
Diluted FFO comparability adjustments for redeemable noncontrolling interests458 — 34 — — 
Diluted FFO comparability adjustments allocable to share-based compensation awards
(167)(18)(139)(1)(50)
Diluted FFO available to common share and common unit holders, as adjusted for comparability (3)
$64,454 $64,188 $61,485 $57,817 $57,866 

(1)FFO adjustment pertaining to COPT’s share of unconsolidated real estate joint ventures reported on page 31.
(2)See reconciliation on page 32 for components of FFO per Nareit.
(3)Refer to the section entitled “Definitions” for a definition of this measure.
(4)Pertains to noncontrolling interests in consolidated real estate joint ventures reported on page 30.

7

Corporate Office Properties Trust
Diluted Share and Unit Computations
(in thousands, except per share data)

 Three Months Ended
 3/31/2112/31/209/30/206/30/203/31/20
EPS Denominator:     
Weighted average common shares - basic111,888 111,817 111,811 111,800 111,724 
Dilutive effect of share-based compensation awards
— 320 — 321 239 
Dilutive effect of redeemable noncontrolling interests
— 117 — — — 
Dilutive convertible preferred units— 155 — — — 
Weighted average common shares - diluted111,888 112,409 111,811 112,121 111,963 
Diluted EPS$(0.06)$0.73 $(0.29)$0.21 $0.21 
Weighted Average Shares for period ended:     
Common shares111,888 111,817 111,811 111,800 111,724 
Dilutive effect of share-based compensation awards
261 320 274 321 239 
Common units
1,246 1,239 1,240 1,237 1,226 
Redeemable noncontrolling interests— 117 — 157 110 
Dilutive convertible preferred units— 155 — 176 — 
Denominator for diluted FFO per share
113,395 113,648 113,325 113,691 113,299 
Redeemable noncontrolling interests940 — 109 — — 
Dilutive convertible preferred units— — 176 — 176 
Denominator for diluted FFO per share, as adjusted for comparability114,335 113,648 113,610 113,691 113,475 
Weighted average common units(1,246)(1,239)(1,240)(1,237)(1,226)
Redeemable noncontrolling interests(940)— (109)(157)(110)
Anti-dilutive EPS effect of share-based compensation awards(261)— (274)— — 
Dilutive convertible preferred units— — (176)(176)(176)
Denominator for diluted EPS111,888 112,409 111,811 112,121 111,963 
Diluted FFO per share - Nareit$0.27 $0.53 $0.04 $0.51 $0.41 
Diluted FFO per share - as adjusted for comparability$0.56 $0.56 $0.54 $0.51 $0.51 




8

Corporate Office Properties Trust
Adjusted Funds from Operations
(in thousands)
 Three Months Ended
 3/31/2112/31/209/30/206/30/203/31/20
Diluted FFO available to common share and common unit holders, as adjusted for comparability
$64,454 $64,188 $61,485 $57,817 $57,866 
Straight line rent adjustments and lease incentive amortization(3,357)3,438 (1,009)2,523 (852)
Amortization of intangibles and other assets included in NOI40 24 (39)(73)(74)
Share-based compensation, net of amounts capitalized1,904 1,751 1,727 1,638 1,389 
Amortization of deferred financing costs793 664 658 642 575 
Amortization of net debt discounts, net of amounts capitalized542 504 453 390 386 
Replacement capital expenditures (1)(12,230)(13,973)(13,085)(16,132)(17,754)
Other diluted AFFO adjustments associated with real estate JVs (2)
241 196 150 (115)(41)
Diluted AFFO available to common share and common unit holders (“diluted AFFO”)
$52,387 $56,792 $50,340 $46,690 $41,495 
Replacement capital expenditures (1)     
Tenant improvements and incentives$7,139 $9,165 $6,950 $8,870 $11,357 
Building improvements3,628 7,523 10,400 13,662 2,475 
Leasing costs1,129 1,514 1,934 2,222 2,762 
Net additions to (exclusions from) tenant improvements and incentives2,900 (370)(943)329 2,026 
Excluded building improvements and leasing costs(2,566)(3,859)(5,256)(8,951)(866)
Replacement capital expenditures$12,230 $13,973 $13,085 $16,132 $17,754 

(1)Refer to the section entitled “Definitions” for a definition of this measure.
(2)AFFO adjustments pertaining to noncontrolling interests on consolidated joint ventures reported on page 30 and COPT’s share of unconsolidated real estate joint ventures reported on page 31.
9

Corporate Office Properties Trust
EBITDAre and Adjusted EBITDA
(in thousands)
 Three Months Ended
 3/31/2112/31/209/30/206/30/203/31/20
Net (loss) income$(6,079)$83,549 $(31,342)$25,121 $25,550 
Interest expense17,519 17,148 17,152 16,797 16,840 
Income tax expense32 258 16 30 49 
Real estate-related depreciation and amortization37,321 36,653 35,332 33,612 32,596 
Other depreciation and amortization555 513 457 448 419 
Impairment losses on real estate— — 1,530 — — 
Gain on sales of real estate490 (30,204)— — (5)
Gain on sale of investment in unconsolidated real estate JV— (29,416)— — — 
Adjustments from unconsolidated real estate JVs693 1,306 1,274 1,270 1,270 
EBITDAre50,531 79,807 24,419 77,278 76,719 
Loss on early extinguishment of debt33,166 4,069 3,237 — — 
Loss on interest rate derivatives— — 53,196 — — 
Net (gain) loss on other investments— (1,218)250 — 
Credit loss (recoveries) expense(907)(772)(1,465)615 689 
Business development expenses548 412 414 678 538 
Demolition costs on redevelopment and nonrecurring improvements— — 11 43 
Adjusted EBITDA83,338 82,298 80,062 78,582 77,989 
Proforma NOI adjustment for property changes within period166 1,459 1,631 959 734 
Change in collectability of deferred rental revenue124 678 224 1,007 — 
In-place adjusted EBITDA$83,628 $84,435 $81,917 $80,548 $78,723 

10

Corporate Office Properties Trust
Office and Data Center Shell Properties by Segment (1) - 3/31/21
(square feet in thousands)
# of
Properties
Operational
Square Feet
% Occupied% Leased
Core Portfolio: (2)
Defense/IT Locations:
Fort Meade/Baltimore Washington (“BW”) Corridor:
    
National Business Park
31 3,821 90.5%92.7%
Howard County
35 2,858 89.3%92.6%
Other
23 1,678 91.8%92.2%
Total Fort Meade/BW Corridor
89 8,357 90.4%92.5%
Northern Virginia (“NoVA”) Defense/IT
13 1,992 87.6%87.8%
Lackland AFB (San Antonio, Texas)
953 100.0%100.0%
Navy Support
21 1,242 96.9%96.9%
Redstone Arsenal (Huntsville, Alabama)
16 1,500 99.6%99.6%
Data Center Shells:
Consolidated Properties
1,990 100.0%100.0%
Unconsolidated JV Properties (3)
17 2,749 100.0%100.0%
Total Defense/IT Locations
172 18,783 94.2%95.1%
Regional Office
2,066 92.9%92.9%
Core Portfolio180 20,849 94.0%94.9%
Other Properties157 68.4%68.4%
Total Portfolio182 21,006 93.8%94.7%
Consolidated Portfolio165 18,257 92.9%93.9%

(1)This presentation sets forth core portfolio data by segment followed by data for the remainder of the portfolio.
(2)Represents Defense/IT Locations and Regional Office properties.
(3)See page 31 for additional disclosure regarding our unconsolidated real estate JVs.



11

Corporate Office Properties Trust
NOI from Real Estate Operations and Occupancy by Property Grouping - 3/31/21
(dollars and square feet in thousands)
 As of Period End 
# of Office and Data Center Shell
Properties
Operational Square Feet% Occupied (1)% Leased (1)Annualized
Rental Revenue (2)
% of Total
Annualized
Rental Revenue (2)
NOI from Real Estate Operations
Property GroupingThree Months Ended
Core Portfolio:
Same Properties: (3)
Consolidated properties
150 16,174 92.4%93.5%$499,156 91.1 %$75,006 
Unconsolidated real estate JV 1,471 100.0%100.0%2,147 0.4 %499 
Total Same Properties in Core Portfolio159 17,645 93.0%94.0%501,303 91.5 %75,505 
Properties Placed in Service (4)13 1,926 99.5%99.6%42,274 7.7 %9,229 
Other unconsolidated JV properties (5)1,278 100.0%100.0%1,723 0.3 %418 
Wholesale Data Center and Other
N/AN/AN/AN/AN/AN/A3,627 
Total Core Portfolio180 20,849 94.0%94.9%545,300 99.5 %88,779 
Other Properties (Same Properties) (3)157 68.4%68.4%2,626 0.5 %328 
Total Portfolio 182 21,006 93.8%94.7%$547,926 100.0 %$89,107 
Consolidated Portfolio165 18,257 92.9%93.9%$544,055 99.3 %$88,190 
As of Period End
# of Office and Data Center Shell
Properties
Operational Square Feet% Occupied (1)% Leased (1)Annualized
Rental Revenue (2)
% of Core
Annualized
Rental Revenue (2)
NOI from Real Estate Operations
Property GroupingThree Months Ended
Core Portfolio:
Defense/IT Locations:
Consolidated properties
155 16,034 93.2%94.3%$473,625 86.9 %$75,160 
Unconsolidated real estate JVs17 2,749 100.0%100.0%3,870 0.7 %917 
Total Defense/IT Locations172 18,783 94.2%95.1%477,495 87.6 %76,077 
Regional Office2,066 92.9%92.9%67,805 12.4 %9,013 
Wholesale Data Center and OtherN/AN/AN/AN/AN/AN/A3,689 
Total Core Portfolio180 20,849 94.0%94.9%$545,300 100.0 %$88,779 
(1)Percentages calculated based on operational square feet.
(2)Excludes Annualized Rental Revenue from our wholesale data center, DC-6, of $24.8 million as of 3/31/21. With regard to properties owned through unconsolidated real estate joint ventures, we include the portion of Annualized Rental Revenue allocable to COPT’s ownership interest.
(3)Includes office and data center shell properties stably owned and 100% operational since at least 1/1/20.
(4)Newly developed or redeveloped properties placed in service that were not fully operational by 1/1/20.
(5)Includes properties in an unconsolidated real estate JV formed in 2020.

12

Corporate Office Properties Trust
Consolidated Real Estate Revenues and NOI by Segment
(in thousands)
 Three Months Ended
 3/31/2112/31/209/30/206/30/203/31/20
Consolidated real estate revenues     
Defense/IT Locations:
Fort Meade/BW Corridor$66,446 $63,733 $63,328 $62,698 $64,438 
NoVA Defense/IT15,211 14,993 14,699 14,447 13,678 
Lackland Air Force Base12,555 13,047 12,602 13,257 12,076 
Navy Support8,398 8,403 8,006 8,119 8,341 
Redstone Arsenal8,253 7,113 6,079 4,647 4,676 
Data Center Shells-Consolidated8,787 8,491 7,995 7,076 5,577 
Total Defense/IT Locations119,650 115,780 112,709 110,244 108,786 
Regional Office16,677 15,092 14,913 15,162 15,460 
Wholesale Data Center8,090 8,093 6,068 6,455 7,172 
Other747 663 753 677 698 
Consolidated real estate revenues$145,164 $139,628 $134,443 $132,538 $132,116 
NOI     
Defense/IT Locations:
Fort Meade/BW Corridor$41,775 $42,319 $41,791 $41,839 $43,216 
NoVA Defense/IT9,335 9,437 9,454 9,112 8,493 
Lackland Air Force Base5,681 5,688 5,486 5,472 5,281 
Navy Support4,965 5,248 4,962 4,948 5,056 
Redstone Arsenal5,699 4,482 4,050 3,035 2,829 
Data Center Shells:
Consolidated properties
7,705 7,603 7,134 6,287 4,920 
COPT’s share of unconsolidated real estate JVs917 1,761 1,752 1,725 1,713 
Total Defense/IT Locations76,077 76,538 74,629 72,418 71,508 
Regional Office9,013 8,155 7,131 8,274 7,923 
Wholesale Data Center3,669 4,260 2,426 2,992 3,939 
Other348 351 457 375 460 
NOI from real estate operations$89,107 $89,304 $84,643 $84,059 $83,830 

13

Corporate Office Properties Trust
Cash NOI by Segment
(in thousands)
 Three Months Ended
 3/31/2112/31/209/30/206/30/203/31/20
Cash NOI     
Defense/IT Locations:
Fort Meade/BW Corridor$39,666 $42,430 $41,365 $41,968 $42,170 
NoVA Defense/IT9,222 9,519 9,410 9,610 9,118 
Lackland Air Force Base5,999 6,006 5,929 5,903 5,701 
Navy Support4,965 5,376 5,130 5,248 5,146 
Redstone Arsenal4,706 4,383 2,848 2,580 2,494 
Data Center Shells:
Consolidated properties
6,505 6,588 6,234 5,505 4,316 
COPT’s share of unconsolidated real estate JVs816 1,668 1,655 1,641 1,633 
Total Defense/IT Locations71,879 75,970 72,571 72,455 70,578 
Regional Office7,448 8,156 7,045 8,078 7,479 
Wholesale Data Center3,760 4,320 2,480 3,005 3,848 
Other363 356 438 358 457 
Cash NOI from real estate operations83,450 88,802 82,534 83,896 82,362 
Straight line rent adjustments and lease incentive amortization
4,006 (3,104)1,016 (2,360)909 
Amortization of acquired above- and below-market rents99 99 98 97 96 
Amortization of intangibles and other assets to property operating expenses(139)(122)(60)(22)(23)
Lease termination fees, net1,362 141 455 199 37 
Tenant funded landlord assets and lease incentives228 3,395 504 2,164 369 
Cash NOI adjustments in unconsolidated real estate JVs101 93 96 85 80 
NOI from real estate operations$89,107 $89,304 $84,643 $84,059 $83,830 

14

Corporate Office Properties Trust
Same Properties (1) Average Occupancy Rates by Segment 
(square feet in thousands)
 # of PropertiesOperational Square FeetThree Months Ended
 3/31/2112/31/209/30/206/30/203/31/20
Core Portfolio:
Defense/IT Locations:
Fort Meade/BW Corridor87 8,195 90.3 %91.2 %90.8 %91.2 %92.3 %
NoVA Defense/IT13 1,992 87.8 %88.4 %88.4 %87.0 %83.9 %
Lackland Air Force Base953 100.0 %100.0 %100.0 %100.0 %100.0 %
Navy Support21 1,242 96.8 %96.9 %94.6 %94.0 %93.6 %
Redstone Arsenal10 806 99.2 %99.1 %99.7 %99.7 %99.5 %
Data Center Shells:
Consolidated properties1,027 100.0 %100.0 %100.0 %100.0 %100.0 %
Unconsolidated JV properties1,471 100.0 %100.0 %100.0 %100.0 %100.0 %
Total Defense/IT Locations
152 15,686 93.1 %93.6 %93.3 %93.3 %93.4 %
Regional Office
1,959 92.0 %92.1 %92.1 %92.0 %90.6 %
Core Portfolio Same Properties159 17,645 92.9 %93.4 %93.2 %93.1 %93.1 %
Other Same Properties157 68.4 %68.4 %68.4 %65.8 %67.4 %
Total Same Properties161 17,802 92.7 %93.2 %92.9 %92.9 %92.8 %

Same Properties (1) Period End Occupancy Rates by Segment 
(square feet in thousands)
 # of PropertiesOperational Square Feet
 3/31/2112/31/209/30/206/30/203/31/20
Core Portfolio:
Defense/IT Locations:
Fort Meade/BW Corridor
87 8,195 90.3 %91.0 %90.9 %91.0 %92.4 %
NoVA Defense/IT
13 1,992 87.6 %88.1 %88.5 %87.0 %85.5 %
Lackland Air Force Base
953 100.0 %100.0