Business Wire | Apr 29, 2021 04:16PM EDT

COPT Reports First Quarter 2021 Results; Raises Midpoint of Full Year Guidance by 3-Cents, Implying 4.7% Growth

Apr. 29, 2021

COLUMBIA, Md.--(BUSINESS WIRE)--Apr. 29, 2021--Corporate Office Properties Trust ("COPT" or the "Company") (NYSE: OFC) announced financial and operating results for the first quarter ended March 31, 2021.

Management Comments

Stephen E. Budorick, COPT's President & Chief Executive Officer, commented, "We are off to a strong start in 2021. Due to our unique investment strategy of concentrating assets around U.S. defense installations executing priority missions in support of national security, and the extremely high credit quality of our tenants, our operations continue to be fundamentally unaffected by pandemic-related externalities. First quarter leasing results were in-line with our internal forecast, and we are off to a blistering start in the second quarter, completing over 660,000 square feet of new and renewal leasing, and achieving an 88% renewal rate. Based on leasing achieved in April and the transactions in negotiation, we are increasing our full-year tenant retention guidance from the prior range of 65%-75% to a new range of 70%-75%. With roughly 900,000 square feet of development transactions in advanced negotiations, we also remain on-track to meet or exceed previously established guidance of leasing 1 million square feet in developments this year."

He continued, "The exceptional execution of our March bond offering and solid operations drove first quarter FFO per share, as adjusted for comparability, to the high-end of guidance and the interest savings will continue to benefit the remainder of the year. Additionally, our improved leasing outlook is driving higher expectations for same-property results. Accordingly, we are increasing the midpoint of our updated full-year guidance for FFO per share, as adjusted for comparability, from $2.19 to a new midpoint of $2.22, which would represent 4.7% growth over 2020 results."

Financial Highlights

1st Quarter Financial Results:

* Diluted (loss) earnings per share ("EPS") was ($0.06) for the quarter ended March 31, 2021 as compared to $0.21 for the first quarter of 2020.

* Diluted funds from operations per share ("FFOPS"), as calculated in accordance with Nareit's definition, was $0.27 for the first quarter of 2021 as compared to $0.41 for first quarter 2020 results.

* FFOPS, as adjusted for comparability, was $0.56 for the first quarter of 2021 as compared to $0.51 for the first quarter of 2020.

Operating Performance Highlights

Operating Portfolio Summary:

* At March 31, 2021, the Company's core portfolio of 180 operating office and data center shell properties was 94.0% occupied and 94.9% leased.

* During the quarter, the Company placed into service 46,000 square feet that were 100% leased.

Same-Property Performance:

* At March 31, 2021, COPT's same-property portfolio of 161 buildings was 92.8% occupied and 93.8% leased.

* For the quarter ended March 31, 2021, the Company's same-property cash NOI decreased 2.7% over the prior year's comparable period.

Leasing:

* Total Square Feet Leased: For the quarter ended March 31, 2021, the Company leased 258,000 total square feet, including 154,000 square feet of renewals, 11,000 square feet in development projects, and 93,000 square feet of new leases on vacant space.

* Renewal Rates: During the quarter ended March 31, 2021, the Company renewed 51.8% of total expiring square feet.

* Rent Spreads & Average Escalations on Renewing Leases: For the quarter ended March 31, 2021, cash rents on renewed space decreased 2.2% and GAAP rents on renewed space increased 4.9%. For the same period, annual escalations on renewing leases averaged 2.6%.

* Lease Terms: In the first quarter of 2021, lease terms averaged 3.1 years on renewing leases, 5.5 years on development leasing, and 8.5 years on new leasing of vacant space.

Investment Activity Highlights

* Development Pipeline: At March 31, 2021, the Company's development pipeline consisted of 10 properties totaling 1.4 million square feet that were 85% leased. These projects have a total estimated cost of $595.2 million, of which $340.2 million has been incurred.

Balance Sheet and Capital Transaction Highlights

* In March, the Company issued $600 million of 2.75% senior unsecured notes due 2031. This issuance enabled the Company to complete tender offers for, and subsequent redemptions of, its $350 million of 3.6% senior unsecured notes due 2023 and $250 million of 5.25% senior unsecured notes due 2024. The tender offers were completed effective March 11, 2021, and the redemptions of the remaining notes were completed on April 12, 2021.

* At March 31, 2021, the Company's net debt to adjusted book ratio was 40.8% and its net debt to in-place adjusted EBITDA ratio was 6.6x. As of the same date, net debt adjusted for fully-leased development plus preferred equity to in-place adjusted EBITDA ratio was 6.3x. For the quarter ended March 31, 2021, the Company's adjusted EBITDA fixed charge coverage ratio was 4.3x.

* At March 31, 2021, and including the effect of interest rate swaps, the Company's weighted average effective interest rate on its consolidated debt portfolio was 3.25% with a weighted average maturity of 4.8 years; additionally, 89.4% of the Company's debt was subject to fixed interest rates.

Associated Supplemental Presentation

Prior to the call, the Company will post a slide presentation to accompany management's prepared remarks for its first quarter 2021 conference call, the details of which are provided below. The accompanying slide presentation can be viewed on and downloaded from the 'Latest Updates' section of COPT's Investors website: https://investors.copt.com/

2021 Guidance

Management is increasing its full-year guidance for EPS and FFOPS, per Nareit and as adjusted for comparability from the prior range of $0.25-$0.31, $1.65-$1.71, and $2.16-$2.22, respectively, to new ranges of $0.28-$0.34, $1.68-$1.74, and $2.19-$2.25, respectively. Management is establishing second quarter guidance for EPS and FFOPS per Nareit, and FFOPS, as adjusted for comparability at ($0.02)-$0.00, $0.33-$0.35, and $0.55-$0.57, respectively. Reconciliations of projected EPS to projected FFOPS, in accordance with Nareit and as adjusted for comparability are as follows:

Reconciliation of EPS to FFOPS, per Nareit, Quarter ending Year endingand As Adjusted for Comparability June 30, 2021 December 31, 2021 Low High Low High EPS $ (0.02 ) $ - $ 0.28 $ 0.34

Real estate-related depreciation and 0.35 0.35 1.40 1.40amortizationFFOPS, Nareit definition 0.33 0.35 1.68 1.74

Loss on early extinguishment of debt 0.22 0.22 0.51 0.51

FFOPS, as adjusted for comparability $ 0.55 $ 0.57 $ 2.19 $ 2.25

Conference Call Information

Management will discuss first quarter 2021 results on its conference call tomorrow at 12:00 p.m. Eastern Time, details of which are listed below:

Conference Call Date: Friday, April 30, 2021

Time: 12:00 p.m. Eastern Time

Telephone Number: (within the U.S.) 855-463-9057

Telephone Number: (outside the U.S.) 661-378-9894

Passcode: 8353839

The conference call will also be available via live webcast in the 'Latest Updates' section of COPT's Investors website: https://investors.copt.com/

Replay Information

A replay of the conference call will be immediately available via webcast on the Investors website. Additionally, a telephonic replay of this call will be available beginning at 3:00 p.m. Eastern Time on Friday, April 30, through 3:00 p.m. Eastern Time on Friday, May 14. To access the replay within the United States, please call 855-859-2056; to access it from outside the United States, please call 404-537-3406. In either case, use passcode 8353839.

Definitions

For definitions of certain terms used in this press release, please refer to the information furnished in the Company's Supplemental Information Package furnished on a Form 8-K which can be found on its website (www.copt.com). Reconciliations of non-GAAP measures to the most directly comparable GAAP measures are included in the attached tables.

About COPT

COPT is a REIT that owns, manages, leases, develops and selectively acquires office and data center properties. The majority of its 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 it believes are growing, durable, priority missions ("Defense/IT Locations"). The Company also owns 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 ("Regional Office Properties"). As of March 31, 2021, the Company derived 88% of its core portfolio annualized rental revenue from Defense/IT Locations and 12% from its Regional Office Properties. As of the same date and including 17 properties owned through unconsolidated joint ventures, COPT's core portfolio of 180 office and data center shell properties encompassed 20.8 million square feet and was 94.9% leased; the Company also owned one wholesale data center with a critical load of 19.25 megawatts that was 86.7% leased.

Forward-Looking Information

This press release may contain "forward-looking" statements, as defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that are based on the Company's current expectations, estimates and projections about future events and financial trends affecting the Company. 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 the Company cannot predict with accuracy and some of which the Company might not even anticipate. Although the Company believes that the expectations, estimates and projections reflected in such forward-looking statements are based on reasonable assumptions at the time made, the Company 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 the Company undertakes 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 the Company's Annual Report on Form 10-K for the year ended December 31, 2020.

Category: Quarterly Results

Source: Corporate Office Properties Trust

Corporate Office Properties Trust

Summary Financial Data

(unaudited)

(dollars and shares in thousands, except per share data)

For the Three Months Ended March 31,

2021 2020

Revenues

Revenues from real estate operations $ 145,164 $ 132,116

Construction contract and other service revenues 16,558 13,681

Total revenues 161,722 145,797

Operating expenses

Property operating expenses 56,974 49,999

Depreciation and amortization associated with real 37,321 32,596 estate operations

Construction contract and other service expenses 15,793 13,121

General and administrative expenses 6,062 5,303

Leasing expenses 2,344 2,183

Business development expenses and land carry costs 1,094 1,118

Total operating expenses 119,588 104,320

Interest expense (17,519 ) (16,840 )

Interest and other income 1,865 1,205

Credit loss recoveries (expense) 907 (689 )

Gain on sales of real estate (490 ) 5

Loss on early extinguishment of debt (33,166 ) -

(Loss) income before equity in income of (6,269 ) 25,158 unconsolidated entities and income taxes

Equity in income of unconsolidated entities 222 441

Income tax expense (32 ) (49 )

Net (loss) income (6,079 ) 25,550

Net loss (income) attributable to noncontrolling interests:

Common units in the Operating Partnership ("OP") 85 (287 )

Preferred units in the OP - (77 )

Other consolidated entities (675 ) (1,132 )

Net (loss) income attributable to COPT common $ (6,669 ) $ 24,054 shareholders



Earnings per share ("EPS") computation:

Numerator for diluted EPS:

Net (loss) income attributable to COPT common $ (6,669 ) $ 24,054 shareholders

Amount allocable to share-based compensation awards (170 ) (97 )

Numerator for diluted EPS $ (6,839 ) $ 23,957

Denominator:

Weighted average common shares - basic 111,888 111,724

Dilutive effect of share-based compensation awards - 239

Weighted average common shares - diluted 111,888 111,963

Diluted EPS $ (0.06 ) $ 0.21

Corporate Office Properties Trust

Summary Financial Data

(unaudited)

(in thousands, except per share data)

For the Three Months Ended March 31,

2021

2020

Net (loss) income

$

(6,079

)

$

25,550

Real estate-related depreciation and amortization

37,321

32,596

Gain on sales of real estate

490

(5

)

Depreciation and amortization on unconsolidated real estate JVs

454

818

Funds from operations ("FFO")

32,186

58,959

FFO allocable to other noncontrolling interests

(1,027

)

(12,015

)

Basic FFO allocable to share-based compensation awards

(162

)

(193

)

Noncontrolling interests - preferred units in the OP

-

(77

)

Basic FFO available to common share and common unit holders ("Basic FFO")

30,997

46,674

Redeemable noncontrolling interests

-

32

Diluted FFO available to common share and common unit holders ("Diluted FFO")

30,997

46,706

Loss on early extinguishment of debt

33,166

-

Diluted FFO comparability adjustments for redeemable noncontrolling interests

458

-

Diluted FFO comparability adjustments allocable to share-based compensation awards

(167

)

(50

)

Demolition costs on redevelopment and nonrecurring improvements

-

43

Dilutive preferred units in the OP

-

77

FFO allocation to other noncontrolling interests resulting from capital event

-

11,090

Diluted FFO available to common share and common unit holders, as adjusted for comparability

64,454

57,866

Straight line rent adjustments and lease incentive amortization

(3,357

)

(852

)

Amortization of intangibles included in net operating income

40

(74

)

Share-based compensation, net of amounts capitalized

1,904

1,389

Amortization of deferred financing costs

793

575

Amortization of net debt discounts, net of amounts capitalized

542

386

Replacement capital expenditures

(12,230

)

(17,754

)

Other diluted AFFO adjustments associated with real estate JVs

241

(41

)

Diluted adjusted funds from operations available to common share and common unit holders ("Diluted AFFO")

$

52,387

$

41,495

Diluted FFO per share

$

0.27

$

0.41

Diluted FFO per share, as adjusted for comparability

$

0.56

$

0.51

Dividends/distributions per common share/unit

$

0.275

$

0.275

Corporate Office Properties Trust

Summary Financial Data

(unaudited)

(in thousands, except per share data)

For the Three Months Ended March 31,

2021 2020

Net (loss) income $ (6,079 ) $ 25,550

Real estate-related depreciation and amortization 37,321 32,596

Gain on sales of real estate 490 (5 )

Depreciation and amortization on unconsolidated real 454 818 estate JVs

Funds from operations ("FFO") 32,186 58,959

FFO allocable to other noncontrolling interests (1,027 ) (12,015 )

Basic FFO allocable to share-based compensation (162 ) (193 )awards

Noncontrolling interests - preferred units in the OP - (77 )

Basic FFO available to common share and common unit 30,997 46,674 holders ("Basic FFO")

Redeemable noncontrolling interests - 32

Diluted FFO available to common share and common unit 30,997 46,706 holders ("Diluted FFO")

Loss on early extinguishment of debt 33,166 -

Diluted FFO comparability adjustments for redeemable 458 - noncontrolling interests

Diluted FFO comparability adjustments allocable to (167 ) (50 )share-based compensation awards

Demolition costs on redevelopment and nonrecurring - 43 improvements

Dilutive preferred units in the OP - 77

FFO allocation to other noncontrolling interests - 11,090 resulting from capital event

Diluted FFO available to common share and common unit 64,454 57,866 holders, as adjusted for comparability

Straight line rent adjustments and lease incentive (3,357 ) (852 )amortization

Amortization of intangibles included in net operating 40 (74 )income

Share-based compensation, net of amounts capitalized 1,904 1,389

Amortization of deferred financing costs 793 575

Amortization of net debt discounts, net of amounts 542 386 capitalized

Replacement capital expenditures (12,230 ) (17,754 )

Other diluted AFFO adjustments associated with real 241 (41 )estate JVs

Diluted adjusted funds from operations available to $ 52,387 $ 41,495 common share and common unit holders ("Diluted AFFO")

Diluted FFO per share $ 0.27 $ 0.41

Diluted FFO per share, as adjusted for comparability $ 0.56 $ 0.51

Dividends/distributions per common share/unit $ 0.275 $ 0.275

Corporate Office Properties Trust

Summary Financial Data

(unaudited)

(Dollars and shares in thousands, except per share data)

March 31,2021

December 31,2020

Balance Sheet Data

Properties, net of accumulated depreciation

$

3,579,254

$

3,562,549

Total assets

4,112,948

4,077,023

Debt, per balance sheet

2,207,903

2,086,918

Total liabilities

2,430,231

2,357,881

Redeemable noncontrolling interests

25,925

25,430

Equity

1,656,792

1,693,712

Net debt to adjusted book

40.8

%

39.1

%

Core Portfolio Data (as of period end) (1)

Number of operating properties

180

179

Total operational square feet (in thousands)

20,849

20,802

% Occupied

94.0

%

94.3

%

% Leased

94.9

%

95.0

%

Corporate Office Properties Trust

Summary Financial Data

(unaudited)

(Dollars and shares in thousands, except per share data)

March 31, December 31, 2021 2020

Balance Sheet Data

Properties, net of accumulated depreciation $ 3,579,254 $ 3,562,549

Total assets 4,112,948 4,077,023

Debt, per balance sheet 2,207,903 2,086,918

Total liabilities 2,430,231 2,357,881

Redeemable noncontrolling interests 25,925 25,430

Equity 1,656,792 1,693,712

Net debt to adjusted book 40.8 % 39.1 %



Core Portfolio Data (as of period end) (1)

Number of operating properties 180 179

Total operational square feet (in thousands) 20,849 20,802

% Occupied 94.0 % 94.3 %

% Leased 94.9 % 95.0 %

For the Three Months Ended March 31,

2021

2020

Payout ratios

Diluted FFO

100.5

%

66.6

%

Diluted FFO, as adjusted for comparability

48.3

%

53.9

%

Diluted AFFO

59.5

%

75.1

%

Adjusted EBITDA fixed charge coverage ratio

4.3

x

3.8

x

Net debt plus preferred equity to in-place adjusted EBITDA ratio (2)

6.6

x

6.3

x

Net debt adj. for fully-leased development plus pref. equity to in-place adj. EBITDA ratio (3)

6.3

x

5.8

x

Reconciliation of denominators for per share measures

Denominator for diluted EPS

111,888

111,963

Weighted average common units

1,246

1,226

Anti-dilutive EPS effect of share-based compensation awards

261

-

Redeemable noncontrolling interests

-

110

Denominator for diluted FFO per share

113,395

113,299

Redeemable noncontrolling interests

940

-

Dilutive convertible preferred units

-

176

Denominator for diluted FFO per share, as adjusted for comparability

114,335

113,475

For the Three Months Ended March 31,

2021 2020

Payout ratios

Diluted FFO 100.5 % 66.6 %

Diluted FFO, as adjusted for comparability 48.3 % 53.9 %

Diluted AFFO 59.5 % 75.1 %

Adjusted EBITDA fixed charge coverage ratio 4.3 x 3.8 x

Net debt plus preferred equity to in-place adjusted 6.6 x 6.3 xEBITDA ratio (2)

Net debt adj. for fully-leased development plus pref. 6.3 x 5.8 xequity to in-place adj. EBITDA ratio (3)



Reconciliation of denominators for per share measures

Denominator for diluted EPS 111,888 111,963

Weighted average common units 1,246 1,226

Anti-dilutive EPS effect of share-based compensation 261 - awards

Redeemable noncontrolling interests - 110

Denominator for diluted FFO per share 113,395 113,299

Redeemable noncontrolling interests 940 -

Dilutive convertible preferred units - 176

Denominator for diluted FFO per share, as adjusted for 114,335 113,475 comparability

(1)Represents Defense/IT Locations and Regional Office properties.

(2)Represents net debt plus the total liquidation preference of preferred equity as of period end divided by in-place adjusted EBITDA for the period, as annualized (i.e. three month periods are multiplied by four).

(3)Represents net debt less costs incurred on properties under development that were 100% leased as of period end plus the total liquidation preference of preferred equity divided by in-place adjusted EBITDA for the period, as annualized (i.e. three month periods are multiplied by four).

(1) Represents Defense/IT Locations and Regional Office properties.

Represents net debt plus the total liquidation preference of preferred(2) equity as of period end divided by in-place adjusted EBITDA for the period, as annualized (i.e. three month periods are multiplied by four).

Represents net debt less costs incurred on properties under development that were 100% leased as of period end plus the total liquidation(3) preference of preferred equity divided by in-place adjusted EBITDA for the period, as annualized (i.e. three month periods are multiplied by four).

Corporate Office Properties Trust

Summary Financial Data

(unaudited)

(in thousands)

For the Three Months Ended March 31,

2021

2020

Reconciliation of common share dividends to dividends and distributions for payout ratios

Common share dividends - unrestricted shares and deferred shares

$

30,805

$

30,754

Common unit distributions - unrestricted units

347

339

Dividends and distributions for diluted FFO payout ratio

31,152

31,093

Distributions on dilutive preferred units

-

77

Dividends and distributions for other payout ratios

$

31,152

$

31,170

Reconciliation of GAAP net (loss) income to earnings before interest, income taxes, depreciation and amortization for real estate ("EBITDAre"), adjusted EBITDA and in-place adjusted EBITDA

Net (loss) income

$

(6,079

)

$

25,550

Interest expense

17,519

16,840

Income tax expense

32

49

Real estate-related depreciation and amortization

37,321

32,596

Other depreciation and amortization

555

419

Gain on sales of real estate

490

(5

)

Adjustments from unconsolidated real estate JVs

693

1,270

EBITDAre

50,531

76,719

Loss on early extinguishment of debt

33,166

-

Credit loss (recoveries) expense

(907

)

689

Business development expenses

548

538

Demolition costs on redevelopment and nonrecurring improvements

-

43

Adjusted EBITDA

83,338

77,989

Proforma net operating income adjustment for property changes within period

166

734

Change in collectability of deferred rental revenue

124

-

In-place adjusted EBITDA

$

83,628

$

78,723

Reconciliation of interest expense to the denominators for fixed charge coverage-Adjusted EBITDA

Interest expense

$

17,519

$

16,840

Less: Amortization of deferred financing costs

(793

)

(575

)

Less: Amortization of net debt discounts, net of amounts capitalized

(542

)

(386

)

COPT's share of interest expense of unconsolidated real estate JVs, excluding deferred financing costs

234

441

Scheduled principal amortization

962

1,021

Capitalized interest

1,805

3,358

Preferred unit distributions

-

77

Denominator for fixed charge coverage-Adjusted EBITDA

$

19,185

$

20,776

Corporate Office Properties Trust

Summary Financial Data

(unaudited)

(in thousands)

For the Three Months Ended March 31,

2021 2020

Reconciliation of common share dividends to dividends and distributions for payout ratios

Common share dividends - unrestricted shares and $ 30,805 $ 30,754 deferred shares

Common unit distributions - unrestricted units 347 339

Dividends and distributions for diluted FFO payout 31,152 31,093 ratio

Distributions on dilutive preferred units - 77

Dividends and distributions for other payout ratios $ 31,152 $ 31,170



Reconciliation of GAAP net (loss) income to earningsbefore interest, income taxes, depreciation and amortization for real estate ("EBITDAre"), adjusted EBITDA and in-place adjusted EBITDA

Net (loss) income $ (6,079 ) $ 25,550

Interest expense 17,519 16,840

Income tax expense 32 49

Real estate-related depreciation and amortization 37,321 32,596

Other depreciation and amortization 555 419

Gain on sales of real estate 490 (5 )

Adjustments from unconsolidated real estate JVs 693 1,270

EBITDAre 50,531 76,719

Loss on early extinguishment of debt 33,166 -

Credit loss (recoveries) expense (907 ) 689

Business development expenses 548 538

Demolition costs on redevelopment and nonrecurring - 43 improvements

Adjusted EBITDA 83,338 77,989

Proforma net operating income adjustment for property 166 734 changes within period

Change in collectability of deferred rental revenue 124 -

In-place adjusted EBITDA $ 83,628 $ 78,723



Reconciliation of interest expense to thedenominators for fixed charge coverage-Adjusted EBITDA

Interest expense $ 17,519 $ 16,840

Less: Amortization of deferred financing costs (793 ) (575 )

Less: Amortization of net debt discounts, net of (542 ) (386 )amounts capitalized

COPT's share of interest expense of unconsolidated 234 441 real estate JVs, excluding deferred financing costs

Scheduled principal amortization 962 1,021

Capitalized interest 1,805 3,358

Preferred unit distributions - 77

Denominator for fixed charge coverage-Adjusted EBITDA $ 19,185 $ 20,776

Corporate Office Properties Trust

Summary Financial Data

(unaudited)

(in thousands)

For the Three Months Ended March 31,

2021

2020

Reconciliations of tenant improvements and incentives, building improvements and leasing costs for operating properties to replacement capital expenditures

Tenant improvements and incentives

$

7,139

$

11,357

Building improvements

3,628

2,475

Leasing costs

1,129

2,762

Net additions to tenant improvements and incentives

2,900

2,026

Excluded building improvements and leasing costs

(2,566

)

(866

)

Replacement capital expenditures

$

12,230

$

17,754

Same Properties cash NOI

$

74,000

$

76,041

Straight line rent adjustments and lease incentive amortization

151

182

Amortization of acquired above- and below-market rents

99

96

Amortization of intangibles and other assets to property operating expenses

-

(23

)

Lease termination fees, net

1,362

38

Tenant funded landlord assets and lease incentives

179

368

Cash NOI adjustments in unconsolidated real estate JV

42

53

Same Properties NOI

$

75,833

$

76,755

Corporate Office Properties Trust

Summary Financial Data

(unaudited)

(in thousands)

For the Three Months Ended March 31,

2021 2020

Reconciliations of tenant improvements andincentives, building improvements and leasing costs for operating properties to replacement capital expenditures

Tenant improvements and incentives $ 7,139 $ 11,357

Building improvements 3,628 2,475

Leasing costs 1,129 2,762

Net additions to tenant improvements and incentives 2,900 2,026

Excluded building improvements and leasing costs (2,566 ) (866 )

Replacement capital expenditures $ 12,230 $ 17,754



Same Properties cash NOI $ 74,000 $ 76,041

Straight line rent adjustments and lease incentive 151 182 amortization

Amortization of acquired above- and below-market 99 96 rents

Amortization of intangibles and other assets to - (23 )property operating expenses

Lease termination fees, net 1,362 38

Tenant funded landlord assets and lease incentives 179 368

Cash NOI adjustments in unconsolidated real estate JV 42 53

Same Properties NOI $ 75,833 $ 76,755

March 31,2021

December 31,2020

Reconciliation of total assets to adjusted book

Total assets

$

4,112,948

$

4,077,023

Accumulated depreciation

1,157,059

1,124,253

Accumulated amortization of real estate intangibles and deferred leasing costs

217,811

217,124

COPT's share of liabilities of unconsolidated real estate JVs

27,603

26,710

COPT's share of accumulated depreciation and amortization of unconsolidated real estate JVs

2,043

1,489

Less: Property - operating lease liabilities

(30,176

)

(30,746

)

Less: Property - finance lease liabilities

(28

)

(28

)

Less: Cash and cash equivalents

(36,139

)

(18,369

)

Less: COPT's share of cash of unconsolidated real estate JVs

(202

)

(152

)

Adjusted book

$

5,450,919

$

5,397,304

Reconciliation of debt outstanding to net debt and net debt adjusted for fully-leased development plus preferred equity

Debt outstanding (excluding net debt discounts and deferred financing costs)

$

2,257,854

2,127,715

Less: Cash and cash equivalents

(36,139

)

(18,369

)

Less: COPT's share of cash of unconsolidated real estate JVs

(202

)

(152

)

Net debt

$

2,221,513

$

2,109,194

Costs incurred on fully-leased development properties

(128,032

)

(114,532

)

Net debt adjusted for fully-leased development plus preferred equity

$

2,093,481

$

1,994,662

View source version on businesswire.com: https://www.businesswire.com/news/home/20210429006032/en/

CONTACT: IR Contacts: Stephanie Krewson-Kelly 443-285-5453 stephanie.kelly@copt.com

CONTACT: Michelle Layne 443-285-5452 michelle.layne@copt.com